The Community Foundation takes very seriously the obligation to steward the charitable funds with which we have been entrusted. Mindful of our commitment to “Helping Donors Share,” we prudently invest charitable funds so they may strengthen the community for current and future generations, carrying out our generous donors’ wishes to make a difference in the lives of others.
Endowed funds provide support in perpetuity for the charitable causes selected by donors. We seek to secure investment returns sufficient to support an annual distribution of up to 4.5% to the donors favored charitable causes, to cover modest administrative expenses, and to preserve the purchasing power of the fund. To accomplish this goal without generating undue risk, the Foundation adheres to a diversified asset allocation strategy and relies on professional investment managers experienced in specialized sectors of the investment markets. Target asset allocations, and the managers serving the Foundation in each of these classes, are as follows (download document):
|22%||Well-known large and mid-size US equities, many of which derive revenues domestically and abroad.||Eagle Capital, Legacy Private Trust Company, North Star Asset Management, Savides Larson Kemps Trigg & Lightfield Group (Baird), Schaper Benz & Wise, Vanguard Russell 1000 Index Fund, Vulcan, Hound Capital|
|7%||Smaller, domestic-based equities with more emphasis on local growth.||Brenner West, Dimensional Fund Advisors|
|30%||Non-US equities in both developed and emerging countries.||Brown, Highclere, Marathon, Sanderson, Tybourne, Vanguard Developed Markets Index Fund, Westwood, Dimensional Fund Advisers|
|Fixed Income||17%||Domestic, global, emerging markets and high yield vehicles.||Bain Capital, Colchester, Oaktree, Vanguard Total Bond Fund ETF, CarVal, Garcia Hamilton|
|Hedge Funds||11%||Diversified and varied strategies including arbitrage, market-neutral products, long/short, distressed debt and event-driven opportunities.||Bay Resources, Forester, Hengistbury, Luxor, Soapstone Capital|
|Real Assets||7%||Diversified portfolios focused on real estate and commodities.||Perennial, Wellington, Aberdeen Asset Management, Carlyle, Denham Capital, Och-Ziff, Crow Holdings, White Rock|
|Private Equity||5%||Niche managers offering differentiated strategies to drive growth and add value.||Montauk TriGard, Blue Wolf Capital, Baird Capital, JP Morgan, Digital Alpha|
Non-endowed (“spend-down”) funds generally provide support for selected charitable causes over a shorter time frame and at a higher rate of distribution than permanent endowment funds. To accommodate the heightened need for short-term stability and liquidity, spend-down funds are invested in one of three pools, depending on the anticipated timeframe for fund distributions (download document):
Short-Term Portfolio – provides a high level of liquidity for funds with short-term grantmaking strategies.
Intermediate-Term Portfolio – balances mild liquidity needs with a reasonable level of expected appreciation over full market cycles.
Long-Term Portfolio – mirrors the investment strategy for endowed funds as closely as possible, with the exception of some asset classes that have longer duration objectives and less liquidity.
The three pools are invested primarily in various Vanguard funds according to the following asset allocations:
|Short-Term Pool||Intermediate-Term Pool||Long-Term Pool|
|Cash/Cash Equivalents||100%||US Large Cap||15.0%||US Large Cap||29.0%|
|US Small Cap||4.0%||US Small Cap||5.0%|
|International Equity||20.0%||International Equity||31.0%|
|US Bonds (inc. HY)||21.0%||US Bonds (inc. HY)||20.0%|
|Short Term Fixed Income||17.5%||Short Term Fixed Income||5.0%|
|Money Market||22.5%||Real Estate||5.0%|
The Community Foundation’s Investment Committee sets investment strategy, hires professional managers and monitors investment performance against industry benchmarks. Committee members
have extensive expertise in business, investments and financial matters. Current Investment Committee members are:
Greg Pawlak (Chair), SVP- Managing Director, RBC Wealth Management
Heather Boyer, Sr. Vice President, CFO, and Treasurer, Society Insurance
Jeffrey Esker, CFP®, Private Wealth Advisor, Ameriprise Financial Services
Gerald Henseler, retired Executive Vice President & CFO, Banta Corp.
Steve Hooyman, President, Copper Harbor Investment Advisors, LLC
Michael Lokensgard (Chair), Shareholder, Godfrey & Kahn
Thomas Medema, Principal, Patmos Holdings LLC
Melanie Miller, Vice President & Treasurer, Bemis Company
Chuck Self, Chief Investment Officer & Chief Operating Officer, iSectors LLC
Kathryn Sieman, Treasurer, Community Foundation for the Fox Valley Region (ex-officio)
Catherine Tierney, CEO Community First Credit Union (ex-officio)
Thomas Vonck, Investment Manager, Schenck Business Solutions
Jeffrey Werner, Senior Vice President – Investment Officer, Wells Fargo Advisors
Curt Detjen, President/CEO, Community Foundation for the Fox Valley Region (ex-officio)
Colonial Consulting, LLC, of New York City is retained by the Investment Committee to monitor the investment performance of individual managers and to advise the Committee on investment strategy, asset allocation and manager selection. The firm’s focus is on advising not-for-profit institutions. They currently advise 138 clients, 90% of which are not-for-profit organizations, with assets totaling $35 billion.