Investment Goals

The Community Foundation’s primary investment goal is to generate maximum long term total return on its assets within prudent levels of risk.

Investments are designed to achieve the total return (income plus capital change) necessary at least to preserve the principal of the funds after any additions and after deductions for expenses, inflation and distributions to advance the quality of life in the Community Foundation’s service area. The minimum performance of the portfolio is considered annual return equal to the return obtainable by investing in one-year U.S. Treasury Bills over three years (the ‘risk-free’ rate of return).  The distribution policy of the Foundation is currently 5% of the average market value of the funds extending to a maximum of twelve trailing months. In addition, as a goal, the Committee seeks to achieve for its portfolios net returns greater than those of a composite benchmark comprised of those indices identified by the Committee as most appropriate.

Diversification of investments is one of the Committee's primary strategies for fulfilling the Foundation's responsibilities.

Since the selection and weighting of asset classes is one of the primary determinants of both investment return and volatility, the selection of those classes and the allocations among them are regularly and carefully considered and monitored by the Investment Committee.