Investment Pools & Strategy
The California Community Foundation’s Endowment Pool returned 8.3% in fiscal year 2018, exceeding its benchmark of 7.3%. U.S. equities was the top performing asset class, while recent global macroeconomic and political events impacted international equities and kept returns on fixed income low. We remain committed to diversification across asset classes and keeping investment costs low, resulting in an efficient portfolio designed to withstand short-term fluctuations while producing strong results over the long term.
We are grateful to have a remarkable investment committee, consultant and staff with excellent experience and knowledge. Collectively this team is dedicated to achieving CCF’s long-term investment objectives in support of the Foundation’s mission.
Together with our donors, we invest now and for the future, fueling impact in Los Angeles County today and for generations to come. We partner with trusted advisors and experts to ensure long-term growth, making the prudent fiscal stewardship of our donors’ funds and legacies a top priority.
After more than a century of giving, we have refined our investment strategies and efficient management of more than 1,700 funds to withstand the changing environment and grow alongside the philanthropic passions of our donors. 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.
In addition, 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
The Endowment Pool is invested over an indefinite time horizon, achieving favorable long-term returns while also allowing for a reasonable level of short-term volatility. The fixed income allocation is comprised of credit assets, rate-sensitive assets and cash. The global equity allocation seeks diversification through investments in U.S. equities and non-U.S. equities. Real assets include both public and private investments in natural resources, infrastructure and real estate. Lastly, the hedge fund allocation is invested across multiple strategies.
- Global Equity 52.4%
- Hedge Funds 14.6%
- Fixed Income 23.6%
- Real Assets 9.4%
Pools & Assets
As of 6/30/18 (in thousands)
Description
Objective
Endowment Pool
Investment Assets: $1,058,979Seeks to achieve long-term growth, preserving the purchasing power of assets over an indefinite time horizon and providing a relatively predictable, stable stream of distributions that keep pace with inflation over time.
Invested for long-term appreciation across multiple investments. Our Investment Committee, our financial partner Meketa Investment Group and many external investment managers oversee this pool.
Social Impact Endowment Pool
Investment Assets: $17,143Aims to achieve long-term growth over an indefinite time horizon, but also adds rigorous environmental, social and governance (ESG) analysis as an additional mandate.
Invested in a mutual fund with multiple social screens and a long-term objective. This pool is managed by PAX World Investments, a socially responsible investment manager.
Conservative Balanced Pool
Investment Assets: $14,395Offers diversified exposure to investment-grade fixed income with maturities from 1-5 years and to the entire U.S. equity market for purposes of grantmaking over an intermediate horizon, generally 3-7 years.
Invested to seek moderate growth while providing the liquidity needed for grantmaking over the intermediate term. Management for this pool is provided by Vanguard.
Short Duration Bond Pool
Investment Assets: $5,534Offers diversified exposure to investment-grade fixed income with maturities from 1-5 years for purposes of distribution over a horizon of 1-4 years. Strives to provide liquidity as well as to potentially offer additional yield through a bond portfolio.
Invested in a bond mutual fund to offer liquidity and modest returns for near-term grantmaking. This pool is managed by Vanguard.
Capital Preservation Pool
Investment Assets: $141,067Endeavors to preserve principal, ensure liquidity and provide working funds for present and future needs through investment in high-quality, short-term fixed income and cash instruments.
Invested to meet the needs of funds with short-term objectives or goals. Structured to ensure maximum liquidity for grantmaking while also seeking to preserve principal. This pool is managed by our long-term partner City National Bank.
