Investment Strategy
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. Learn more about our investment results and opportunities here.
Endowed Funds
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, can be downloaded here.
Non-Endowed Funds
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.
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 which you can download and view here.
Investment Committee Oversight
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:
Charles Self, Chair, Retired CIO & COO, iSectors LLC
Greg Pawlak, Managing Director – Financial Advisor, RBC Wealth Management
Jeffrey Esker, CFP® Private Wealth Advisor, Ameriprise Financial Services
Beth Flaherty, (Ex-officio), Community Volunteer
Michael Lokensgard, Shareholder, Godfrey & Kahn
Melanie Miller, (Ex-officio), Retired Vice President & Treasurer, Amcor
Jesse Nelson, Partner, Copper Harbor Investment Advisors LLC
Kathryn Sieman, Retired SVP, CFO & Treasurer, CSE Insurance Group
Matt Vechart, Retired Chief Financial Officer, Endries International
Jeffrey Werner, Senior Vice President, Wells Fargo Advisors
Curt Detjen, (Ex-officio) President/CEO, Community Foundation for the Fox Valley Region
Investment Advisor
The Community Foundation’s investment strategy is managed by our new Outsourced Chief Investment Officer (OCIO), FEG Investment Advisors. FEG has extensive institutional experience, working with more than 40 community foundations across the nation. Ninety percent of the firm’s OCIO institutional clients are nonprofits. FEG has over $65 billion under advisement, and consistently outperforms the market. Additionally, FEG’s expertise will help provide the financial footing necessary to support our philanthropic mission. FEG works with our local volunteer investment committee members who are experts in investment and finance.
