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
- 2006 Audit (PDF format)
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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