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Local Investment Committee Determines Financial Strategy

By Kathryn Mawer, CFA, CAIA Vice President / OCIO Advisor, FEG Investment Advisors

Kathryn Mawer

One question I often hear from people when their community foundation switches to an Outsourced-Chief Investment Officer (OCIO) model is, “I understand that the OCIO manages my donation, but who manages the OCIO?”

Great question! What you may not see at first is the depth of the partnership between the Community Foundation for the Fox Valley Region and our organization, Fund Evaluation Group (FEG), the OCIO.

We report to your local volunteer Investment Committee which is comprised of a dozen community professionals in the Fox Valley with varied roles, including investment advisors, chief financial officers and lawyers. All of us together, along with the Board of Directors, are considered fiduciaries, or stewards, of the Community Foundation’s assets.

Your Investment Committee continues to determine the long-term strategy of the Community Foundation’s portfolio. The OCIO (that’s us) is responsible for implementing that strategy. The distinction between strategy and implementation is important — strategy has the greatest impact on the portfolio performance, with some studies even citing that it determines more than 90% of portfolio variability.

The key takeaway is that the Community Foundation’s move to an OCIO model last year did not result in less involvement from local community members. The committee continues to work tirelessly on your behalf and is invaluable to grow and safeguard your donations.

Please feel free to reach out with other questions you would like us to write about. Thank you, and as always, we are honored to serve the Community Foundation for the Fox Valley Region!

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. Learn more about our investment strategy.

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