INVESTMENT POOLS & STRATEGY

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. 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. Our four pools 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 a diversified, multi-asset class portfolio of primarily active managers invested for long-term growth and appreciation. The Endowment Pool is invested over an indefinite time horizon, although results are intended to be measured over a full market cycle. Given the long-term orientation of the Endowment Pool, we think it is reasonable to allow for a level of short-term volatility, which can benefit longer-term return potential. Most of the pool is allocated to global equities, both public and private, which seeks diversification by style, geography and sector. There are also meaningful allocations to fixed income, alternative assets and real assets to provide differentiated drivers of return and risk.

As of today, the approximate target asset allocation for the Pool is 17 percent cash & fixed income, 50 percent equities, 15 percent alternative assets (hedge funds), 10 percent private equity, and 8 percent real assets. These targets are likely to evolve over time depending on the market opportunity set. This is the primary vehicle used by CCF for the investment of its permanent funds.

POOLS & ASSETS

Description

Objective

1
Endowment
Pool

Investment Assets:
$1,146,486,006

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 investments. Our Investment Committee, our Outsourced Chief Investment Officer Hall Capital Partners and many external investment managers oversee this pool.

2
Social Impact
Endowment Pool

Investment Assets:
$94,837,255

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:
$51,834,764

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:
$249,133,414

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

1 YEAR

3 YEAR

5 YEAR

10 YEAR

1. Endowment Pool

7.2%

5.8%

4.7%

5.5%

CCF Blended Benchmark

10.1%

7.6%

5.9%

5.8%

Crewcial Partners (FAOG) Community Foundation Survey

10.3%

8.8%

6.0%

6.7%

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

12.5%

7.3%

7.9%

7.7%

65% S&P 500 / 35% BCAgg

12.3%

8.0%

8.6%

8.8%

3. Conservative Balanced Pool
(inception date: 10/1/2013)

5.6%

3.1%

4.2%

-

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

5.9%

3.1%

4.5%

-

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

3.7%

1.2%

1.6%

1.0%

Bank of America ML 91-Day T-Bills

3.8%

1.3%

1.6%

1.0%