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The Community Foundation for Greater New Haven
Financial Statements (2010)
Form 990 (2010)
IRS Designation Letter
The Valley Community Foundation (Affiliate)
Financial Statements (2010)
Form 990 (2010)
IRS Designation Letter
In addition to benchmarking the performance against market-driven
indices, The Corporation also compares its performance against its
community foundation peers nationally. Since inception of the national
survey, The Corporation has consistently ranked among the top of its
peer group as reflected in the chart below.
The chart represents the Council on Foundations’ national investment
survey comprising more than $8.3 billion in charitable assets of more
than one hundred of community foundations, for the periods ended
December 31, 2009 as reported in February 2010. All data is
expressed as percentages, and annualized for periods of more than one
year. Effective in 2008, The Council on Foundations began to express
performance net of investment management and custodial fees. Therefore,
the 3-year through 10-year returns are a blend of next and gross
performance. N = number of survey participants and ( ) is a negative
number.
| YTD | | 1 year | | 3 years
| | 5 years
| | 7 years | | 10 years |
| CFGNH Inc. | 27.0 | | 27.0 | | 0.8 | | 4.8 | | 8.7 | | 5.7 |
Relative Benchmark
| 27.4 | | 27.4 | | (3.2) | | 2.2 | | 6.3 | | 3.4 |
Peer Data
| 23.8
N=124
| | 23.8
N=124
| | (0.8)
N=111
| | 3.2
N=101
| | 6.9
N=86
| | 3.7
N=63
|
The following chart indicates the Administrative fees for funds administered by The Community Foundation:
Type of Fund
|
Minimum Fund Balance*
|
Fees Assessed
|
|
Unrestricted, Preference & Designated
|
$10,000
|
1% annually of a fund's market value withdrawn quarterly
|
Donor Advised
|
$10,000
|
1% annually of a fund's market value withdrawn quarterly; for funds under $10,000, a minimum fee of $75 per quarter will apply unless the fund fits criteria of a Build-A-Fund
|
| Scholarship |
$25,000
|
If the scholarship requires application and review process, 1.5% annually of a fund's market value withdrawn quarterly; if a scholarship is designated to a single organization, then the designated fund minimum ($10,000) and fees apply (1%)
|
Organization Endowment
|
$10,000
|
0.40% annually of a fund's market value withdrawn quarterly with a minimum fee of $25 per quarter
|
* Funds can be built to fund-minimum in recommended period of 3-5 years or other time period per written fund agreement, except for organization endowment funds. Administrative fees will not be assessed during the "building" period.
Donors May Choose Between Two Investment and Spending Options:
Managed within the endowment pool
If the requested grant amount is larger than the amount available from the spending policy, or larger than the grant amount determined at the establishment of a fund, at least sixty (60) days notice is required for an amount up to 50% of the fund’s then market value, and at least ninety (90) days is required for a distribution amount more than 50% of the fund’s then market value.
Available for Current-use Grantmaking
The amount available for grantmaking will be immediately available on a current basis and will not be managed within the endowment pool and therefore will not have investment performance attributed to the fund.
Merrill Lynch donor advised funds, through Merrill Lynch Community Charitable Fund, are invested, assessed fees and managed under separate agreement.
The Community Foundation for Greater New Haven for more than eighty years has been primarily
an endowment organization designed to maintain the communities’
charitable assets in perpetuity. Therefore, the investment management
concepts and best practices contained within Connecticut law, such as
the Uniform Prudent Management of Institutional Funds Act, and the
Uniform Prudent Investors Act form the basis of our investment
philosophy and strategy. Specifically:
The Community Foundation’s Corporation, The Community Foundation for
Greater New Haven, Inc. ( “CFGNH, Inc.” or “The Corporation”), which
includes those funds held by The Community Foundation’s affiliate – The
Valley Community Foundation, in order to preserve the purchasing power
and real economic spending of the endowment, shall manage its assets in
accordance with a total-return approach, which does not distinguish
between an asset’s yield and appreciation, but rather on the total
expected return of the assets over the long-term. The Foundation will
withdraw a specific percentage of the market value from the endowment
in accordance with a Spending Rule Policy, which is designed to
prudently release a predictable stream of revenue during each fiscal
year to meet the region’s charitable needs, while at the same time
allowing for maximum flexibility and efficiency of the investment
management process.
In order to achieve the spending requirements and maintain the
endowment’s purchasing power, the The Corporation operates in
accordance with two policies: 1)
The Spending Rule Policy and, 2)
The Asset Allocation Policy.
Generally, and in the absence of an institution’s desire to retain the right to withdraw principal from its organization endowment within the meaning of financial accounting standard No. 136 under Generally Accepted Accounting Principles, the process for extracting financial resources from endowment funds to meet the charitable needs of our community is accomplished through a Spending Rule Policy, which is defined as follows:
A Spending Rate, which is determined annually by The Corporaton's Board of Directors, equal to the greater of: a) Fixed percentage1 of the endowment assets available for investment based on a trailing five-year moving average; or b) Four and One-Quarter Percent (4.25%) (the “Floor”) of the market valuation of the endowment assets at the end of the most recent calendar quarter; provided however in no event shall the Foundation spend more than Five and Three-Quarters Percent (5.75%) (the “Cap”) of the market valuation of the endowment at the end of the most recent calendar quarter.
1 The Spending Rate for 2011 is equal to Five and Three-Quarter Percent (5.75%).
The Corporation's long-term asset allocation model is as follows
1:
1 Adopted by The Community Foundation's Corporation, Bank of America as trustee and Wells Fargo as trustee, March 2010.
The external investment managers listed below are retained to perform specific asset class services in accordance with the long-term asset allocation model, and are chosen through a competitive selection process conducted by The Community Foundation's Investment Committee.
The twenty-two managers
a currently retained are:
Asset Class
|
Manager
|
Strategy/Style
|
Market Benchmark |
Large/Mid Cap
|
Adage Capital Partners
|
Active/Enhanced |
S&P 500 |
Small Cap
|
Ashford Capital
|
Growth |
Russell 2000 – Growth |
Small Cap
|
Dimensional Fund Advisors
|
Value |
Russell 2000 – Value |
| Small Cap |
CMG |
Core |
Russell 2000 |
Non-US Developed
|
TBD
|
Core |
MSCI EAFE |
Non-US Developed
|
Cevian Capital Partners
|
Concentrated Value
|
MSCI EAFE - Value |
| Non-Us Developed |
Dimensional Fund Advisors |
Value |
MSCI EAFE - Value |
Non-US Developed
|
Gryphon International |
Growth |
MSCI EAFE – Growth |
Non-US Emerging
|
DFA
|
Emerging Equity
|
MSCI EM |
| Non-US Emerging |
Aberdeen |
Emerging Equity |
MSCI EM |
| Bonds |
Colchester Global
|
Global Sovereign
|
Citigroup World Government Bond |
| Bonds |
Mondrian Partners
|
Emerging Debt |
JPM EMBI Plus |
| Bonds |
I R & M |
Intermediate TIPS |
Barclays US TIPS |
| Bonds |
Vanguard |
Long-term Treasuries
|
Barclay's Long Treasury |
Private Equity
|
T.I.F.F. Partners1,2
|
Multi-strategy |
S&P 500; T-Bills + 5% |
Absolute Return
|
T.I.F.F2 |
Multi-strategy |
HFRI Fund of Funds
|
Hedged Equity
|
Forrester Capital, LLP2 |
Long/Short |
HFRI Equity Hedge |
Real Assets
|
Metropolitan LLP2,3 |
Real Estate
|
NCREIF Property Index |
Real Assets
|
Shorenstein Fund Nine4
|
Real Estate
|
NCREIF Property Index |
Real Assets
|
LBA Realty Fund IV4 |
Real Estate
|
NCREIF Property Index |
| Real Assets |
Varde Partners4 |
Distressed Special Situations
|
HFRI Distressed Securities/ S&P 500
|
Real Assets
|
Merit Energy Partners
|
Oil and Gas
|
S&P MLP Index
|
a As approved by the Investment Committee, through November 10, 2011
1 T.I.F.F. = The Investment Fund for Foundations, a nonprofit organization whose mission is to assist the investment management processes for nonprofit organizations.
2 Fund of Funds strategy.
3 Three separate funds: III, V, and International II.
4 Direct.
The Community Foundation's Corporation and The Community Foundation measure and assess its investment performance monthly, both on a manager-by-manager and cumulatively, through an external third party. All investment performance data, including holdings and transactions, is independently provided by each manager The Community Foundation’s independent auditor and to Colonial Consulting, L.L.C., a New York based firm that provides evaluation and investment advisory services to more than seventy foundations and endowments nationally, including more than twenty community foundations. Investment performance is assessed against two benchmarks, as follows:
“Absolute”: The Absolute investment performance benchmark is equal to the Consumer Price Index plus effective Spending Rate.
“Relative”: The Relative investment performance benchmark is equal to fifty (50) basis points (0.5%) above the rate of return produced by specific market benchmarks, which represent the asset classes contained in the long-term asset allocation model, with such market benchmarks weighted in accordance with the model’s target allocation.
The total expected annual cost for
investment management process is approximately seventy-five (75) basis points (0.75%). The Foundation has and will continue to present any investment performance statistics on a “net of fee basis” (i.e. after the payment of all direct costs associated with the investment management process) when comparing its results against the Absolute and Relative benchmarks. In fiscal year 2009 (audited, 26 February 2010), the cost of investment management for the endowment was 76.5 basis points, and The Corporation’s net return after the cost of investment management was 27.0%.
The Community Foundation’s Board of Directors annually appoints an Investment Committee consisting of eight (8) members, not necessarily from the its own membership, which shall be responsible for complete oversight and implementation of the strategies, models, and managers for the investment of the charitable assets entrusted to The Corporation. In concert with the professional staff, the Investment Committee may engage consultants as necessary or desirable to discharge its duties, and shall report such results, activities, and actions to the Board of Directors, the donors, and the general public via The Community Foundation’s website, at regular intervals.
Currently, the Investment Committee consists of:
- two (2) members of The Community Foundation’s Board of Directors (David Newton, Chair of Investment Committee; Will Colwell);
- four (4) members from The Community Foundation for Greater New Haven’s trustees (Peter Weston, Bank of America; Steve Campisi, Bank of America; Mike Bayles, Wells Fargo; Donald Rotzien, Wells Fargo);
- two (2) independent investment experts selected by the committee’s membership (Ellen Shuman, Carnegie Corporation; Cynthia Steer, Russell Investments).