CF4CC Investments 

Objectives: The primary investment objective of the CF4CC’s investment portfolio (the “Portfolio”) is to provide a relatively stable, inflation adjusted, annual payout to support the Foundation’s defined spending rate, as well as provide capital appreciation to grow the Portfolio over time.  There will be some inevitable volatility in principal value in this Portfolio, but it may offer the potential for a sustainable payout plus underlying growth over the long term. 

Spending Policy:  The Foundation shall distribute 4% of the Portfolio’s average market value over the prior 20 quarters to support the Foundation's charitable pursuits.  This 20 quarter average was chosen to accommodate (smooth out) the payouts based on a more volatile, growth-oriented portfolio.

This spending policy may be revised by the Committee and submitted to the Board for approval from time to time.  

 

Asset Allocation: Foundation’s current investment allocation is

Class   Target %   Range
Equities   77%   65–80%
Fixed Income   23%   20–35%
Cash       0–10%

Portfolio Benchmarks:

  • 3% above the risk-free rate (one-month treasury bills) plus inflation (Personal Consumption Expenditure (PCE).
  • Portfolio is expected to perform as well as a “composite” index consisting of a weighing of the Standard & Poor’s 500 Stock Index (equities) and of the Shearson Lehman Intermediate Bond Index (fixed income) that equates to the funds weighting in each asset class, net of fees.
  • These objectives are to be measured over running five-year periods.

Important: The above information represents excerpts from the Foundation’s investment policy adopted by the Board of Directors on November 22, 2013. This information should be relied upon only in conjunction with the complete policy. Please consult with your investment advisor regarding the appropriate investment plan for you.

More detailed information concerning investment managers, fees charged and oversight information available upon request.