Investment Pools and Strategy
The current investment climate is characterized by a remarkable calm and low volatility in the face of problematic worldwide growth. Years of a zero interest rate policy on the part of central banks have led investors to bid up yield-oriented investments to the point where there is little margin for error. With respect to equities, yield-generating, slow but dependable growers are trading at significant premiums to other equities with potentially better growth prospects. In evaluating our portfolio, we are clearly aware that investment styles come in and out of favor and consequently take pains to ensure that our portfolio is truly diversified and not overly exposed to various factors such as the direction of future interest rates. Furthermore, in a low-return environment, costs become even more important on a relative basis. And we take pains to ensure that all higher cost investment strategies truly add value.
Preston L.C. Johnson
Investment Committee Chair and Board Member
For 100 years, the California Community Foundation has served as a trusted steward of the philanthropic dreams and resources of Los Angeles County residents. Our investment strategies are designed to support our donors’ charitable goals while serving the people of Los Angeles throughout the next century and in perpetuity. To that end, our efficient management and prudent investment strategies have created a diverse portfolio able to weather volatile market climates and focused on a longer time-horizon. 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 strong economic principles, we 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) provides a customized investment solution by allowing donors whose funds 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.
Social Impact Endowment Pool
Conservative Balanced Pool
Short Duration Bond Pool
Capital Preservation Pool