Investment Strategy
Investment Objectives
The Foundation’s assets are invested across one of four investment portfolios based on fund type and objective. Funds to be managed for perpetuity are invested in the Endowment Portfolio. Donors may be invested in the Long Term Portfolio, Socially Responsible Portfolio, Short Term Portfolio, or a custom blend of these three portfolios.
The Endowment Portfolio is designed for assets with the investment objective of maintaining value in perpetuity while serving the current needs of the community. The Foundation defines the investment strategy as an inflation-adjusted return consistent with a 5.00% distribution rate.
The Long Term Portfolio is designed for donors choosing to impact both the current needs of the community and those of future generations. The investment objective is to serve those needs, enable reasonable liquidity, and maintain value over an extended time frame. The Foundation defines the investment strategy as a diversified portfolio that provides an inflation-adjusted return consistent with a 5.00% distribution rate, and allows flexible donor grantmaking distributions.
The Socially Responsible Portfolio is designed for donors choosing to impact the current of the community and those of future generations. The investment objective is to serve those needs, provide a flexible amount of liquidity, and maintain value over an extended time frame. The Foundation defines the investment strategy as a balanced portfolio of securities from issuers screened for social responsibility in areas such as environment, workplace, product safety, human rights, and corporate governance.
The Short Term Portfolio is designed for donors choosing to impact both current and near-term needs of the community in which the investment objective is to maintain liquidity for grantmaking. The Foundation defines the investment strategy as a short duration portfolio whose targeted return matches or exceeds inflation. This pool is utilized for near-term grantmaking needs of all donor advised funds.
Strategy, Discipline, Impact – the fiscal year 2012 Annual Investment Report
Diligent stewardship of The San Francisco Foundation assets matters because long term strong performance means greater impact in community. We invite you to learn more about our investment strategy and performance in
Investment Performance
as of March 31, 2013
2013 began with a continuation of 2012’s equity market conditions, a peaceful combination of rising prices and modest volatility that has led some to wonder if investors might be tempted to embrace the stock market once again. Despite significant gains over the past few years for US markets, capital had steadily been withdrawn as investors expressed little confidence in the sustainability of returns. At least for now, this trend appears to have been interrupted.
At the same time, investors continue to be faced with concerns regarding economic growth, unemployment and government policy. As these issues have been prominent for some time, it is not surprising that markets have a somewhat muted reaction to anything that suggests a continuation of the trend in place. Nevertheless, optimism seems to be slowly and erratically building thanks to small signs of improved growth and data suggesting that the housing market is recovering.
Our 10 year investment returns of 9.6% per year enable your gifts to have a lasting impact.
For the latest investment performance updates, please log in to Donor Center or contact Philanthropic Services at 415.733.8500.
Annualized Returns as of March 31, 2013
| Calendar Year to Date | 1 Year |
3 Year | 5 Year |
7 Year |
10 Year |
|
| ENDOWMENT* Endowment Benchmark** |
5.6% 6.1% |
10.9% 11.0% |
9.8% 10.0% |
6.1% 5.5% |
6.2% 5.2% |
9.8% 9.1% |
LONG TERM DONOR ADVISED* Long Term Donor Advised Benchmark** |
5.1% 5.3% |
9.9% 9.9% |
9.4% 9.2% |
6.2% 5.1% |
6.1% 5.0% |
9.6% 8.8% |
SHORT TERM CPI |
0.1% |
0.5% |
0.6% |
0.6% |
1.6% |
1.8% |
| SUPPLEMENTAL INDICES Council on Foundations Community Foundation Median |
5.3% |
9.5% |
8.3% |
4.9% |
4.5% |
7.8% |
*Returns are net of investment manager, trading, and custody fees.
**These benchmarks are custom blends of several third-party indices and do not reflect the costs associated with purchasing, selling, or holding the securities included in the indices.