Investment Options and Investment Committee

Community Foundation donors can select from among 4 investment options for their funds. These options vary from conservative to more aggressive and are designed to fit the needs and requirements of our diverse group of donors.  The 4 options are:

Central Investment Fund
This fund seeks preservation of principal and is invested in U.S. Treasuries and money market funds.  It is the most conservative investment option.  

S&P 500 Index Fund
This fund is invested to mirror the returns of the S&P 500 Index.

Specially Invested Funds
The Community Foundation invests these funds with financial consultants, approved by the Investment Committee at the recommendation of a donor.  This is another of the special services that the Foundation offers to donors.  The Community Foundation has already established relationships with Legg Mason, Merrill Lynch, Salomon Smith Barney, Morgan Stanley, Bernstein Co., Ferris Baker Watts, and will be developing new relationships.  Donors may recommend a financial consultant to The Community Foundation, and conversely, financial consultants may introduce prospective donors to The Community Foundation. 

Combined Investment Fund
This fund is a pooled fund of the assets of many of the Foundation’s component funds, as well as the component funds of its affiliates.  It is managed by Fayez Sarofim & Co. of Houston, Texas (growth manager); Southeastern Asset Management, Inc. of Memphis, Tennessee (value manager); and Loomis Sayles, Inc. of Boston, Massachusetts (fixed income manager).  The Combined Investment Fund’s overall financial objective is to invest assets with limited risk. Funds are invested to provide safety through diversification in a portfolio of common stocks, bonds, cash equivalents and other approved investments that represent varying rates of return.  A profile of this fund follows below.

The Combined Investment Fund Profile
Building capital also means sound financial stewardship.  With over three decades of experience, our record of funds management and investment performance remains strong.  The Combined Investment Fund has assets of over $95 million and is a pooled fund of the assets of many of the four community foundation’s component funds.  The overall financial objectives of the Foundation’s Combined Investment Fund are to:

• Invest in equity assets to achieve an annual rate of return in excess of the Standard and Poor’s 500 Common Stock Index
• Invest in fixed income assets to achieve an annual rate of return in excess of the Lehman Brothers Government and Corporate Bond Index.

At June 30, 2007, the breakdown of the Combined Investment Fund was as follows:

We use appropriate benchmark indices to track each of these managers.  However, we report against the standard 60/40 (60% S&P 500 index/40% Lehman Brothers Gov’t/Credit).  For the second quarter of 2007 the combined investment fund earned 4.25% compared with the 60/40 index return of 3.57%.

Combined Investment Fund Returns ---  April 1, 2007 –  June 30, 2007

Combined Investment Fund Returns ---  January 1, 2007 – March 31, 2007