The Community Foundation prudently invests charitable funds so they may strengthen the community for current and future generations, carrying out our generous donors’ wishes to impact their communities and make a difference in the lives of others.
We’re pleased to introduce our Outsourced Chief Investment Officer (OCIO) Fund Evaluation Group (FEG) Investment Advisors. As of March 1, 2020, the Community Foundation for the Fox Valley Region’s investment strategy is managed by FEG, whose advisors are working with our volunteer investment committee members, who are local experts in investment and finance.
With our OCIO approach, we set the investment policy and strategic direction to ensure that performance meets or exceeds expectations. FEG performs the research, hires the investment managers and has discretion to make the portfolio decisions real-time without the delays in decision-making that can be common for endowments.
The Community Foundation’s investment strategy is designed to preserve and grow capital, helping to ensure that donors’ charitable assets benefit the community now and for generations to come. Portfolios embrace diversification and active management. This strategic approach helps guard against short-term market swings while still providing the opportunity for long-term gains.
The Community Foundation and our investment committee are responsible to establish the investment policy and strategic direction. The OCIO is empowered to select and manage the investment managers within the approved policy, while remaining accountable to the Community Foundation for results.
We selected FEG as our OCIO partner due to its strong and extensive institutional experience. FEG works with more than 40 community foundations across the nation, and 90% of the firm’s OCIO institutional clients are nonprofits. FEG has over $65 billion under advisement, and consistently outperforms financial benchmarks. FEG’s expertise will help provide the financial footing necessary to support our philanthropic mission.
The Community Foundation has separate asset allocations for its long-term endowment portfolio and three non-endowed portfolio options, based on donor-intended timing for charitable distributions.
Due to historic lows in money market interest rates, at a recent Investment Committee meeting, the Committee decided to include short-term fixed income instruments to the portfolio along with money market funds. Within the new Investment Policy Statement, the Short-Term pool can invest in mutual funds, ETFs, and debt securities of any kind, including Treasuries, short-term debt, corporate debt, mortgage- and asset- backed securities, and CDs. The short-term pool is not managed by FEG. The weighted average credit quality will be AA- or better. The primary objective of the Short-Term portfolio is to target returns of 1% or greater.
Information provided below by FEG, Cincinnati, Ohio. Read our 3rd Quarter 2021 Market Report here.
|Period ending 9/30/2021||Endowment Pool||Target Benchmark|
|Period ending 9/30/2021
||Short-term composite||Intermediate-term composite||Long-term composite|