Donors to The Community Foundation may request that their fund be invested according to one of four investment options:
The Community Foundation Pool—a diversified portfolio of assets invested broadly among institutional money managers. Managers are selected by the investment committee of The Community Foundation’s Board with the assistance of a neutral investment consultant. The Foundation Pool is designed to support a distribution rate of 5%, while at the same time increasing the value of the corpus at a rate greater than inflation, net of grant distributions and expenses.
American Funds Option—a diversified portfolio of American Funds Mutual funds selected by the investment committee of The Community Foundation’s Board and purchased without commissions. The American Funds Option is also designed to support a distribution rate of 5% while at the same time increasing the value of the corpus at a rate greater than inflation, net of grant distributions and expenses. In addition, the donor may request that their licensed investment advisor be listed as the advisor of record for the fund.
Money Market Option—a standard money market fund that is appropriate for funds wishing to protect principal and avoid market risk while earning money market rates of return.
Individually Managed Option—The Community Foundation permits donors with fund balances of $250,000 or more to recommend the investment advisor of their choice to manage the assets in their funds. The Foundation will retain the recommended investment advisor to manage the assets for such a fund, if the investment advisor follows The Community Foundation’s investment policy with regard to such funds.
The assets of The Community Foundation and the investment managers that serve under the Foundation’s four investment options are closely monitored by the investment committee of The Community Foundation’s Board, a group of experienced investors and leaders from a variety of business backgrounds. As stewards of the Foundation’s assets, our investment committee holds the selected investment managers to the highest standards of ethical behavior and professional performance.