For Estate Planning Professionals

How We Invest

The Foundation's Strategy

• Establish a strategic asset allocation which is expected to achieve the Foundation's long-term return objective to preserve Foundation purchasing power.
• No attempt is made to time the market or change strategy based on near-term outlook.
• Diversify the portfolio by asset class and strategy. This reduces risk and increases the likelihood of achieving the return objective under different economic and market conditions.

Asset Allocation

The Foundation's assets are well-diversified using a long-term strategic approach.

• 65% of the assets are invested in equity securities, 25% are invested in fixed income, 5% in inflation hedges, and the remaining 5% in direct real estate.
• Within the equity portion of the portfolio, the Foundation invests in large cap, mid cap and small cap companies as well as international and emerging market companies.
• The expected return of the portfolio is 8.5%. This return will allow the Foundation to support its mission, even after adjusting for inflation. While there is risk associated with investing in equities, the return potential over the long-term is significant. Fixed income strategies historically have been less risky, but investing in bonds alone is not likely to provide enough return to support the long-term return objective of the Foundation. Real estate and inflation hedging strategies increases the diversification of the portfolio and assist in managing risk.

The Current Strategy

How Does the Foundation Oversee its Portfolio?

Investment Committee -- Monitors performance, asset allocation, manager allocations and manager style adherence.

Colonial Consulting -- Produces monthly performance reports for the Foundation, reviews all manager written reports and portfolios and immediately communicates any problems or concerns to the Committee.

Asset Allocation and Investment Managers