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Corporation's Long-term
Asset Allocation Model |
| 32.5% |
Alternative Investments |
| 22.5% |
US Large/Mid Cap Equity |
| 10.0% |
Bonds |
| 22.5% |
Non-US Developed Equity |
| 7.5% |
US Small Cap Equity |
| 5.0% |
Non-US Emerging Equity | Overseeing investment management for almost 700 component funds that make up The Community Foundation for Greater New Haven is one of the most important responsibilities of the Board of Directors. The Board’s Investment Committee recommends all modifications to the Statement of Investment Policy, established the long-term asset allocation model (see chart at right and below), selects all managers to implement each component of the long-term model, sets market-driven performance benchmarks for each manager, and monitors all practices and performance of the investment strategies and managers.
In 1984, The Foundation established a separate charitable corporation – The Community Foundation for Greater New Haven, Inc., (Corporation) to provide donors with another avenue for fulfilling its charitable intentions. In addition to the Corporation, The Foundation's four trustee banks are: Wachovia, Bank of America, NewAlliance and People’s.
The Foundation’s investment strategy is that of a total return approach to endowment management. This long-term strategy seeks to provide a predictable, increasing amount of revenue for grantmaking while maintaining the endowment’s purchasing power against the effects of inflation. To achieve these goals, The Foundation has implemented disciplined and integrated spending and investment policies.
The Corporation's spending policy provides an annual distribution based on a Spending Rate equal to five and three-quarters percent (5.75%) of a 20-quarter rolling market value average, with a “cap” and “floor” overlay. This cap and floor allows the distribution, in periods of favorable markets, to increase while also protecting the endowment’s erosion in a prolonged period of adverse market conditions. The “cap”, or maximum distribution, is equal to 5.75% of the current market value and the “floor”, or minimum distribution, is equal to 4.25% of the current market value. The amount available for distribution from those funds held at each of the Trustees is based on a Spending Rate of five and one-quarter percent (5.25%), which is calculated in the same manner as is done for the Corporation. |
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