INVESTMENT POOLS + STRATEGY
CCF has served Los Angeles for over 100 years. To ensure we continue making an impact in the next century and beyond, our investments are focused on the long term. In a tumultuous environment, we de-emphasized short-range noise and maintained a disciplined long-term investment strategy. We invested across asset classes to reduce volatility and better control the aggregate risk and return of our portfolio.
Recent Endowment Pool returns have been excellent. For the one-year period ending June 30, 2021, the Endowment Pool returned 25.6 percent. This was partly attributable to a slight over allocation to equities in general and non-U.S. equities in particular—two segments of the capital markets which have experienced sustained gains. Moving forward, we intend to adjust our asset allocation as part of an overall effort to manage volatility and meet targeted returns.
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.
STEVEN J. COBB, Chief Financial Officer | ELIZABETH HERNÁNDEZ, Investments Officer
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 four funds
are each managed with individual objectives designed to align with the grantmaking horizon of our donors—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 providing 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 global equity allocation seeks diversification
through investments in U.S. equities and non-U.S. equities as well as private equity. 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 6/30/21 (in thousands)
DESCRIPTION
OBJECTIVE
1
ENDOWMENT
POOL
Investment Assets:
$1,384,385,635
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.
Invested for long-term appreciation
across multiple asset classes. Our investment committee, investment staff and investment consultant oversee this pool.
2
SOCIAL IMPACT
ENDOWMENT POOL
Investment Assets:
$42,286
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.
Invested in the Vanguard FTSE Social Index fund and Community Capital Management fund, two mutual funds with multiple social screens and a long-term objective.
3
CONSERVATIVE
BALANCED POOL
Investment Assets:
$38,314
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.
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
CAPITAL
PRESERVATION POOL
Investment Assets:
$269,208
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.
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 | 25.6% | 9.9% | 10.3% | 7.0% |
50% MSCI ACWI / 14% HFR FOF / 14% S&P Real Assets Index / 15% Barc Agg. / 7% Barc High Yield | 27.1% | 10.7% | 10.0% | 6.8% |
Colonial Consulting & FAOG Community Foundation Survey | 31.8% | 11.2% | 11.2% | 8.1% |
Social Impact Endowment Pool (inception date: 1/1/2004) | 24.8% | 13.9% | 11.7% | 8.5% |
65% S&P 500 / 35% BCAgg | 25.1% | 14.5% | 12.4% | 10.6% |
Conservative Balanced Pool (inception date: 10/1/2013) | 12.5% | 8.0% | 6.7% | - |
30% CRSP U.S. Total Market Index / 70% Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index | 12.3% | 8.4% | 6.9% | - |
Capital Preservation Pool (inception date: 1/1/2002) | 0.2% | 1.5% | 1.2% | 0.7% |
Bank of America ML 91-Day T-Bills | 0.1% | 1.3% | 1.1% | 0.6% |
ADDITIONAL REPORTS
