Financials

The Foundation uses Hammond Associates Institutional Fund Consultants, Inc., to provide advisory services for managing the Foundation’s endowed assets. Hammond, based in St. Louis, consults on more than $37 billion in total assets held by foundations, including 11 community foundation, higher education institutions, health care institutions, pension plans and private wealth clients. Hammond’s staff numbers 89, with 17 professionals dedicated to investment research.

Hammond has brought extensive experience, depth of understanding, and proactive advice to the trustees serving on the Foundation’s Finance Committee and Board and the Foundation staff, as they serve as stewards of the endowed assets of the Foundation.

Independent Auditor's Report

A completed IRS Form 990, Return of Organization Exempt From Income Tax, for The Community Foundation is available online through Guidestar at www.guidestar.org or upon request from the Foundation.

Investment Policies and Objectives

General Investment Philosophy

The Foundation seeks returns that are sufficient to preserve and enhance the real, inflation-adjusted grantmaking power of its Endowment. In pursuing this objective, the Foundation endeavors to achieve total returns that, over time, are better than the relevant market averages, while maintaining acceptable levels of risk. We do not expect that in every year this investment objective will necessarily be achieved. While there cannot be complete assurance that this objective will be realized, the Foundation believes that the likelihood of realization is enhanced by the diversification of our Endowment among several asset classes, the engagement of Hammond Associates, nationally recognized investment advisors, and the engagement of leading managers in each asset class.

The Board is ultimately responsible for the stewardship of the Endowment, and has delegated to the Finance Committee the responsibility to oversee and make decisions related to the investment of all endowed assets of the Foundation.

CURRENT POLICY ASSET ALLOCATION *

Growth Assets Target Manager
US Large-Cap Stocks 3.5% Legg Mason Value Trust
US Mid-Cap Stocks 3.2% Vanguard Mid-Cap Stock Fund
US Small-Cap Stocks 2.5% Vanguard Small-Cap Stock Fund
US Large-Cap Growth Stocks 9.5% Vanguard Growth Index Fund
US Large-Cap Value Stocks 3.5% Dodge and Cox Stock Fund
US Small-Cap Value Stocks 1.8% Harbor Small Cap Value
Total US Equity 24%  
Intl Large-Cap Stocks 12.6% Barclay's International Alpha Tilts / Dodge and Cox Intl. Stock Fund
Intl Small-Cap Stocks 3.8% Acadian International Small Cap
Intl Emerging Market Stocks 7.6% Mondrian Emerging Markets/ State Street Global Advisors Active Emerging Markets
Total Intl Equity 24%  
Private Equity / Special Situations* 2% TIFF Private Equity Partners 2005 / Lehman Bros. Secondary Opportunities Fund / Park Street Capital Private Equity Fund VII, L.P./ Goldman Sachs Vintage Fund IV/ Portfolio Advisors Private Equity Fund IV/ Newbury Secondary Fund
Total Private Equity/Special Situation 2%  
Total Growth Assets 50%  
Risk Reduction Assets Target Manager
US / Global Fixed Income 13% PIMCO Total Return /Colchester Global Bond Fund
Absolute Return 15% Common Sense Offshore Fund /Silver Creek Low Vol II
Total Risk Reduction Assets 28%  
Inflation Protection Assets Target Manager
US Inflation Protected Bonds 7% Vanguard Inflation Protected Securities
Real Assets 15% iShares GS Natural Resources / Guggenheim Real Estate Plus; Colony Realty Partners II LP / Newlin Energy Fund
Total Inflation Protection Assets 22%  

*The Finance Committee has approved a total allocation of 12% to the Private Equity/Special Situations asset class, which will be phased in over the next several years.

The Community Foundation Endowment Pool
Investment Returns (net of fees) as of December 31, 2007

12/31/07
Market Value
3 Month Year To Date 1 Year 3 Year 5 Year Since 5/95
$118,658,000 0.5% 11.1% 11.1% 11.6% 13.3% 10.0%

Returns are annualized if greater than one year and are reported net of all fees.

Note: Total annual weighted fees paid to managers of the pool are approximately .85% of the total pool. (This estimate is adjusted quarterly). In addition, Hammond Associates is paid an annual advisory fee equal to .12% of the first $100M of assets under advisement, and .02% of assets in excess of $100M.

For additional information, contact: Grace M. Sacerdote, CPA, Vice President of Finance and Administration (904)356-4483 or gsacerdote@jaxcf.org.

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