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Long-Term Investment Portfolios
There are three long-term investment portfolios maintained by the Community Foundation. These are:
Global Growth Portfolio
This investment pool has been developed by the Foundation’s Investment Committee as the primary investment vehicle for funds invested for the long-term. Its purpose is the generation of maximum long-term total returns within levels of risk determined to be prudent by the Foundation Trustees. The Global Growth Pool’s objective can best be described in one word, diversification. The Investment Committee believes that a multi-asset class portfolio consisting of many different types of investments from around the world, best fulfills that objective. Investments range from publicly traded US & foreign stocks and bonds as represented in several no-load indexed mutual funds, to alternative investments such as private equity, venture capital, private real estate, natural resources, mezzanine, and hedge funds. Low cost vehicles such as index mutual funds were sought to meet most of the publicly traded asset class objectives in accordance with the following overall strategic target percentages. Bonds and cash are included to dampen volatility.
U.S. Equity |
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45% |
Non-U.S. Equities |
|
20% |
Bonds & Cash |
|
20% |
Alternative Investments |
|
15% |
(Private Equity & Venture Capital* Private Real Estate & Natural Resources Hedge Funds) |
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* Note: Includes direct mezzanine fund |
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Asset Manager(s): Various low cost mutual funds for all investments other than alternatives. Alternatives consist of private equity and venture capital, real estate and natural resources, and hedge fund of funds.
Benchmark (blended): 50% Wilshire 5000 // 20% EAFE // 30% Lehman Aggregate Bond Index.
Portfolio Management Fee: Approximately 12 basis points (.12%) for all index fund investments and significantly higher fees for the alternative asset class.
The funds and asset allocation currently employed within this portfolio are:
| ASSET CLASS |
INVESTMENT VEHICLE |
RANGES |
TACTICAL BENCHMARKS |
| U. S. Equity |
Vanguard Total Market Index Fund |
40%-50% |
Wilshire 5000 |
| Non-U.S. Equities |
Vanguard FTSE All World ex-US Index Fund |
15%-25% |
EAFE |
| Bonds & Cash |
Vanguard Total Bond Index Fund |
15%-25% |
LB Aggregate Bond |
Private Equity/Venture Capital |
Babson Tower Square Capital II
Commonfund Capital Partners 2000
Commonfund Private Equity VI
Commonfund Venture Capital VII
Glenmede Private Equity IV
Park Street Private Equity VIII |
Up to 5% |
TBD |
| Real Estate & Natural Resources |
Commonfund Natural Resources VII
Glenmede Real Estate Fund II
Metropolitan Real Estate Fund III
Metropolitan Real Estate
Partners International II
Park Street Natural Resources II & III |
Up to 5% |
TBD |
| Hedge Funds |
Alternative Investments Hedge
Fund
Pine Grove Offshore Hedge Fund |
Up to 5% |
TBD |
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Bank of America Portfolio
This portfolio is a collection of funds that were received by the CFWM over several years from a number of donors who recommended Bank of America or it’s predecessors as the investment manager. The primary objective of this pool is the generation of long-term total returns, and is available to those donors upon request.
U.S. Equity |
|
50% |
International |
|
20% |
Bonds & Cash |
|
30% |
Asset Manager: Bank of America
Benchmark (blended): 50% Wilshire 5000 // 20% EAFE // 30% Lehman Aggregate Bond Index
Underlying Investment Vehicle(s): Various mutual funds owned or recommended by Bank of America
Portfolio Management Fee: Approximately 60 basis points (.60%)
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Socially Responsible Portfolio
This pool has been developed as a long-term portfolio for those donors who strongly believe that investments can make a positive difference on social and environmental issues. To this end, the Committee has employed Trillium Asset Management an active portfolio manager that specializes in structuring portfolios based on an intensive screening process. As in any investment endeavor that limits the scope of investments, this portfolio may tend to be more volatile than one that is able to diversify across the entire universe of investment opportunities.
U.S. Equity |
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50% |
International |
|
20% |
Bonds & Cash |
|
30% |
Asset Manager: Trillium Asset Management
Benchmark (blended): 50% Wilshire 5000 // 20% EAFE // 30% Lehman Aggregate Bond Index
Investment Vehicle(s): Actively managed by Trillium Asset Management using “socially responsible” criteria.
Portfolio Management Fee: Approximately 40 basis points (.40%)
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