Investment Pools And Strategy

In August, stock market volatility rose sharply to levels last seen in 2008, due primarily to worries about global growth. Equity markets declined significantly. For the Investment Committee, the key to making good decisions in this context is an understanding of the true long-term nature of our investment objective. We can accept short-term volatility as an inevitable part of achieving excellent long-term returns. We believe that optimal long-term decisions are made through a focus on economic fundamentals, followed by constructive and systematic, rather than emotional reaction. We recognize that many times markets overshoot and opportunities are created for long-term investors who have the discipline and understanding to look through the noise. We are pleased to have an outstanding committee with excellent experience and judgment – critical to maintaining the discipline of our investment process.

Preston L.C. Johnson,
Investment Committee Chair and Board Member

For 100 years, the California Community Foundation has served as a trusted and enduring resource for Los Angeles County. Our investments continue to be determined by the desire to meet the needs of our donors while serving the people of Los Angeles in perpetuity. To that end, our efficient management and prudent investment strategies have created a diverse portfolio able to weather fluctuating markets. The long-term fiscal stewardship of our donors’ funds and legacies is our highest priority. Under the leadership of our Investment Committee, and guided by sound economic principles, we have designed five investment pools in order to meet our donors’ diverse needs – from short-term grantmaking to the creation of a permanent endowment.

CCF’s Charitable Asset Management Partnership (ChAMP) also offers greater levels of flexibility by allowing donors whose funds that meet certain criteria to recommend a registered investment advisor of their choosing to manage the assets of their Donor Advised Fund.

Endowment Pool Allocation

CCF’s Endowment Pool is invested over an indefinite time horizon, which allows it to take on a reasonable level of short-term volatility in order to achieve favorable long-term returns. Its equity fund portfolio seeks diversification through investments in U.S. equities, non-U.S. equities, alternative investments and other “opportunistic” investments, while the fixed income portfolio is diversified with respect to both industry sectors and issuers to minimize risk exposure.