INVESTMENTS

California Community Foundation’s Investment Committee reports an Endowment Pool return of 5.5% for the one-year period ended June 30, 2019. The investment strategy for the Endowment Pool is designed to provide real growth of assets over time while protecting the value of the assets from undue volatility or risk of loss. The Endowment Pool has an indefinite time horizon, which therefore extends beyond normal market cycles. This enables the Pool to take on a reasonable level of short-term volatility in order to achieve favorable long-term investment returns.

The Investment Committee works with an external investment consulting firm to establish asset allocation guidelines and select investment managers. Collectively, these parties are dedicated to achieving our long-term investment objectives in support of our mission of improving the quality of life for all Angelenos.

Steven J. Cobb
Chief Financial Officer
Anabel Giron
Investments Director

We and our donors seek to address the needs of today while upholding charitable legacies for generations to come, so we invest both for now and for the future. In partnership with our trusted advisors and experts, we seek to ensure long-term growth and the prudent fiscal stewardship of our donors’ funds and legacies is our top priority.

We have honed our investment strategies over more than a century, and our 1,700 funds are managed with the goal of withstanding market volatility in order to grow alongside the philanthropic passions of our donors. 

Under the leadership of our Investment Committee and guided by strong economic principles, we designed four 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

in thousands

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.

POOLS & ASSETS

as of 6/30/19 in thousands

DESCRIPTION

OBJECTIVE

1

ENDOWMENT
POOL
Investment Assets:
$1,128,398

DESCRIPTION

Seeks 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.

OBJECTIVE

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.

2

SOCIAL IMPACT
ENDOWMENT POOL
Investment Assets:
$17,600

DESCRIPTION

Aims to achieve long-term growth over an indefinite time horizon, but also adds rigorous environmental, social and governance (ESG) analysis as an additional mandate.

OBJECTIVE

This pool is comprised of the Vanguard FTSE Social Index Fund (65%), Vanguard Short-Term Bond Index Fund (5%) and Community Capital Management Fund (CRANX) (30%).

3

CONSERVATIVE
BALANCED POOL
Investment Assets:
$14,613

DESCRIPTION

Offers 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.

OBJECTIVE

Invested to seek moderate growth while providing the liquidity needed for grantmaking over the intermediate term. Management for this pool is provided by Vanguard.

4

SHORT DURATION
BOND POOL
Investment Assets:
$163,936

DESCRIPTION

Endeavors 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.

OBJECTIVE

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.

INVESTMENT PERFORMANCE

(For periods ending June 30)

1 Year

3 Year

5 Year

10 Year

ENDOWMENT POOL

5.5%

9.0%

4.5%

7.7%

50% MSCI ACWI / 14% HFR FOF / 14% S&P Real Assets
Index / 15% Barc Agg. / 7% Barc High Yield

5.4%

7.7%

3.8%

7.0%

Colonial Consulting & FAOG Community
Foundation Survey

4.2%

8.5%

4.8%

8.5%

Social Impact Endowment Pool (inception date: 1/1/2004)

7.9%

8.3%

5.9%

8.5%

65% S&P 500 / 35% BCAgg*

10.8%

9.8%

7.9%

10.6%

CONSERVATIVE BALANCED POOL (inception date: 10/1/2013)

6.7%

5.4%

4.4%

30% CRSP U.S. Total Market Index / 70% Barclays U.S. 1-5
Year Government/Credit Float Adjusted Index

6.8%

5.4%

4.4%

Short Duration Bond Pool (inception date: 7/1/2014)

-0.2%

0.8%

Barclays U.S. 1-5 Year Government/Credit Float Index

-0.2%

0.8%

Capital Preservation Pool (inception date: 1/1/2002)

2.3%

1.4%

0.9%

0.6%

Bank of America ML 91-Day T-Bills

2.3%

1.4%

0.8%

0.5%

* In March 2019, CCF moved from the PAX World Balanced Fund to the Vanguard FTSE Social Index, Vanguard Short-Term Bond and Community Capital Management Funds.

financial report infographic

ABOUT CCF FINANCIALS