How We Manage the Community’s Endowment
Investment Philosophy
The Community Foundation is an endowment organization designed to maintain the community’s 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: In order to preserve the purchasing power and real economic spending of the endowment, The Corporation shall manage its assets in the Perpetual Fund 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 Corporation includes those funds held by The Community Foundation’s affiliated entity, The Valley Community Foundation.
Investment Commentary: Q2 2024
During the second quarter of 2024, equity markets rebounded after a difficult month of April to finish up modestly. However, the divergence between mega-cap technology stocks and the rest of the market became even more pronounced, as these tech-focused equities led by continued enthusiasm over AI continued to drive most of the market results. READ MORE
Asset Allocation Policy
The Corporation'sa long-term asset allocation model1 is as follows:
Asset Class2 | Target3 | Market Benchmark4 | |
---|---|---|---|
Equities | |||
Global |
50% |
MSCI All Country Word Index | |
Total Equities | 50% | ||
Alternatives | |||
Hedge Funds | 15% | HFRI Fund of Funds Index | |
Private Assets | 20% | CPI + 5.0%; Cambridge PE Index | |
Total Alternatives | 35.0% | ||
Bonds | |||
Global Sovereign | 5.0% | CitiGroup World Government Bonds | |
Intermediate T.I.P.S. | 5.0% | Barclays US TIPS 1-10 years | |
US Treasuries | 5.0% | Barclays Long Treasury | |
Total Bonds | 15.0% | ||
Total Allocation | 100% |
a The Community Foundation for Greater New Haven, Inc. is a Connecticut Registered Investment Adviser
1 Approved by the Investment Committee on 25 May 2022.
2 Certified to be a true copy of the actions approved by The Community Foundation for Greater New Haven's Investment Committee and has not been amended, altered, and remains in effect.
3 Target weightings to be used to assess investment performance for the Relative Benchmark, effective 1 April 2021.
4 Market benchmarks to be used to compute investment performance for the Relative Benchmark, effective 1 April 2021.
Partner With Us
The Community Foundation offers several investment options, depending on the type of fund.
CashWith the Cash option, your donor advised fund is held in cash or cash equivalent to preserve capital without risk or appreciation, and is readily available for grantmaking at all times. | Intermediate FundThe Intermediate Fund is a diversified portfolio of liquid assets to provide you the opportunity for some appreciation with moderate risk. Assets are readily available for grantmaking at all times. This option is only available to Donor Advised Funds. | Perpetual FundThe Perpetual Fund seeks to preserve the real economic spending power of your donor advised fund over time. To meet this objective, only a percentage (%) of your fund's market value is available to recommend for grantmaking each year. |
Organization Funds
Organization funds are charitable assets owned and controlled by individual nonprofit organizations managed according to a long-term investment model established for The Community Foundation for Greater New Haven, Inc.’s (The Corporation) own endowment. A charitable organization can participate in this commingled fund by entering into an investment management agreement.
Organizations have the comfort of knowing that their endowment-like assets are managed according to the highest industry standards and best practices. Additionally, The Corporation is a registered investment adviser under the Connecticut Uniform Securities Act. As a registered investment adviser, The Corporation is regulated by The State of Connecticut’s Department of Banking and adheres to its comprehensive compliance program. More about organization funds.
The Spending Rule Policy
The Spending Rule Policy 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.
Generally, and in the absence of a nonprofit 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 Community Foundation'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 Community 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 2024 is equal to five and one-half percent (5.5%).
With the cash option, the Fund is held in cash or cash-equivalent to preserve capital without risk or appreciation, and is readily available for grantmaking at all times.
Investment Management Expense
The Corporation is a Connecticut registered investment adviser, and presents all investment performance information “net of expenses.” Net of expenses means net of the direct costs incurred in the operation of the Commingled Fund that holds the proprietary and organization funds’ endowment and endowment-like assets.
The Foundation’s FY22 (ending December 31st) externally-audited cost of the Comingled Fund's expenses, including sub-advisory fees, was sixty-eight basis points, or 0.68%, and allocated to every component and organization fund on a pro-rata basis.
Administrative Fees
Administrative fees empower The Community Foundation to enhance the impact of philanthropy in Greater New Haven, drive community leadership and offer personalized service and local expertise. The following chart indicates the administrative fees for component funds administered by The Community Foundation:
Type of Fund | Minimum Fund Balance* | Administrative Fees |
---|---|---|
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%) |
* Funds can be built to fund-minimum in recommended period of 3-5 years or other time period per written fund agreement. Administrative fees will not be assessed during the "building" period.
Gifts by credit card: The fund that receives a credit card gift will incur the transaction fee assessed by the credit card processing company; this fee does not reduce the deductibility of the contribution.
Investment Performance
Each document below shows a snapshot of the relative investment performance of The Corporation, including those endowments and funds managed for the Valley Community Foundation, and its three largest trustee banks, and includes each entity's market-driven investment performance benchmark as reported by Crewcial Partners, LLC.
In addition to benchmarking its performance against market indices, The Corporation also compares its performance against its community foundation peers. The Corporation has consistently ranked among the top of its peer group since the inception of the national survey.
Investment Performance - Corporation and Asset Summary - August 2024
Investment Performance - Trustees - August 2024
Investment Performance - Corporation and Asset Summary - July 2024
Investment Performance - Trustees - July 2024
Investment Performance - Corporation and Asset Summary - June 2024
Investment Performance - Trustees - June 2024
Investment Performance - Intermediate Fund - June 2024
Investment Performance - Corporation and Asset Summary - May 2024
Investment Performance - Trustees - May 2024
Investment Performance - Corporation and Asset Summary - April 2024
Investment Performance - Trustees - April 2024
Investment Performance - Corporation and Asset Summary - March 2024
Investment Performance - Trustees - March 2024
Investment Performance - Intermediate Fund - March 2024
Investment Performance - Corporation and Asset Summary - February 2024
Investment Performance - Trustees - February 2024
Investment Performance - Corporation and Asset Summary - January 2024
Investment Performance - Corporation and Asset Summary - December 2023
Investment Performance - Trustees - December 2023
Investment Performance - Intermediate Fund - December 2023
Investment Performance - Corporation and Asset Summary - November 2023
Investment Performance - Trustees - November 2023
Investment Performance - Corporation and Asset Summary - October 2023
Investment Performance - Trustees - October 2023
Investment Performance - Corporation and Asset Summary - September 2023
Investment Performance - Trustees - September 2023
Investment Performance - Intermediate Fund - September 2023
Investment Performance - Corporation and Asset Summary - August 2023
Investment Performance - Trustees - August 2023
Investment Performance - Corporation and Asset Summary - July 2023
Investment Performance - Trustees - July 2023
Investment Performance - Corporation and Asset Summary - June 2023
Investment Performance - Trustees - June 2023
Investment Performance - Intermediate Fund - June 2023
Investment Performance - Corporation and Asset Summary - May 2023
Investment Performance - Trustees - May 2023
Investment Performance - Corporation and Asset Summary - April 2023
Investment Performance - Trustees - April 2023
Investment Performance - Corporation and Asset Summary - March 2023
Investment Performance - Trustees - March 2023
Investment Performance - Intermediate Fund - March 2023
Investment Performance - Corporation and Asset Summary - February 2023
Investment Performance - Trustees - February 2023
Investment Performance - Corporation and Asset Summary - January 2023
- Investment Performance - Corporation and Asset Summary - December 2022
- Investment Performance - Trustees - December 2022
- Investment Performance - Intermediate Fund - December 2022
- Investment Performance - Corporation and Asset Summary - November 2022
- Investment Performance - Trustees - November 2022
- Investment Performance - Corporation and Asset Summary - October 2022
- Investment Performance - Trustees - October 2022
- Investment Performance - Corporation and Asset Summary - September 2022
- Investment Performance - Trustees - September 2022
- Investment Performance - Intermediate Fund - September 2022
- Investment Performance - Corporation and Asset Summary - August 2022
- Investment Performance - Trustees - August 2022
- Investment Performance - Corporation and Asset Summary - July 2022
- Investment Performance - Trustees - July 2022
- Investment Performance - Corporation and Asset Summary - June 2022
- Investment Performance - Trustees - June 2022
- Investment Performance - Intermediate Fund - June 2022
- Investment Performance - Corporation and Asset Summary - May 2022
- Investment Performance - Trustees - May 2022
- Investment Performance - Corporation and Asset Summary - April 2022
- Investment Performance - Trustees - April 2022
- Investment Performance - Corporation and Asset Summary - March 2022
- Investment Performance - Trustees - March 2022
- Investment Performance - Intermediate Fund - March 2022
- Investment Performance - Corporation and Asset Summary - February 2022
- Investment Performance - Trustees - February 2022
- Investment Performance - Corporation and Asset Summary - January 2022
- Investment Performance - Trustees - January 2022
- Investment Performance - Corporation and Asset Summary - December 2021
- Investment Performance - Trustees - December 2021
- Investment Performance - Intermediate Fund - December 2021
- Investment Performance - Corporation and Asset Summary - November 2021
- Investment Performance - Trustees - November 2021
- Investment Performance - Corporation and Asset Summary - October 2021
- Investment Performance - Trustees - October 2021
- Investment Performance - Corporation and Asset Summary - September 2021
- Investment Performance - Trustees - September 2021
- Investment Performance - Corporation and Asset Summary - Aug 2021
- Investment Performance - Trustees - Aug 2021
- Investment Performance - Corporation and Asset Summary - July 2021
- Investment Performance - Trustees - July 2021
- Investment Performance - Corporation and Asset Summary - June 2021
- Investment Performance - Trustees - June 2021
- Investment Performance - Intermediate Fund - June 2021
- Investment Performance - Corporation and Asset Summary - May 2021
- Investment Performance - Trustees - May 2021
- Investment Performance - Corporation and Asset Summary - April 2021
- Investment Performance - Trustees - April 2021
- Investment Performance - Corporation and Asset Summary - March 2021
- Investment Performance - Trustees - March 2021
- Investment Performance - Intermediate Fund - March 2021
- Investment Performance - Corporation and Asset Summary - February 2021
- Investment Performance - Trustees - February 2021
- Investment Performance - Corporation and Asset Summary - January 2021
- Investment Performance - Trustees - January 2021
- Investment Performance - Corporation and Asset Summary - December 2020
- Investment Performance - Trustees - December 2020
- Investment Performance - Intermediate Fund - December 2020
- Investment Performance - Corporation and Asset Summary - November 2020
- Investment Performance - Trustees - November 2020
- Investment Performance - Corporation and Asset Summary - October 2020
- Investment Performance - Trustees - October 2020
- Investment Performance - Corporation and Asset Summary - September 2020
- Investment Performance - Trustees - September 2020
- Investment Performance - Intermediate Fund - September 2020
- Investment Performance - Corporation and Asset Summary - August 2020
- Investment Performance - Trustees - August 2020
- Investment Performance - Corporation and Asset Summary - July 2020
- Investment Performance - Trustees - July 2020
- Investment Performance - Corporation and Asset Summary - June 2020
- Investment Performance - Trustees - June 2020
- Investment Performance - Intermediate Fund - June 2020
- Investment Performance - Corporation and Asset Summary - May 2020
- Investment Performance - Trustees - May 2020
- Investment Performance - Corporation and Asset Summary - April 2020
- Investment Performance - Trustees - April 2020
- Investment Performance - Corporation and Asset Summary - March 2020
- Investment Performance - Trustees - March 2020
- Investment Performance - Intermediate Fund - March 2020
- Investment Performance - Corporation and Asset Summary - February 2020
- Investment Performance - Trustees - February 2020
- Investment Performance - Corporation and Asset Summary - January 2020
- Investment Performance - Trustees - January 2020
- Investment Performance - Corporation and Asset Summary - December 2019
- Investment Performance - Trustees - December 2019
- Investment Performance - Intermediate Fund - December 2019
- Investment Performance - Corporation and Asset Summary - November 2019
- Investment Performance - Trustees - November 2019
- Investment Performance - Corporation and Asset Summary - October 2019
- Investment Performance - Trustees - October 2019
- Investment Performance - Corporation and Asset Summary - September 2019
- Investment Performance - Trustees - September 2019
- Investment Performance - Intermediate Fund - September 2019
- Investment Performance - Corporation and Asset Summary - August 2019
- Investment Performance - Trustees - August 2019
- Investment Performance - Corporation and Asset Summary - July 2019
- Investment Performance - Trustees - July 2019
- Investment Performance - Corporation and Asset Summary - June 2019
- Investment Performance - Trustees - June 2019
- Investment Performance - Intermediate Fund - June 2019
- Investment Performance - Corporation and Asset Summary - May 2019
- Investment Performance - Trustees - May 2019
- Investment Performance - Corporation and Asset Summary - April 2019
- Investment Performance - Trustees - April 2019
- Investment Performance - Corporation and Asset Summary - March 2019
- Investment Performance - Trustees - March 2019
- Investment Performance - Intermediate Fund - March 2019
- Investment Performance - Corporation and Asset Summary - February 2019
- Investment Performance - Trustees - February 2019
- Investment Performance - Corporation and Asset Summary - January 2019
- Investment Performance - Trustees - January 2019
Benchmarks & Assessment Process
The Corporation and The Community Foundation measure and assess its investment performance monthly, both manager-by-manager and cumulatively, through an external third party. All investment performance data, including holdings and transactions, is independently provided by each manager to The Community Foundation’s independent auditor and to Crewcial Partners LLC, 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 for the Perpetual Fund 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.
Governance of Investment Process
The Community Foundation’s Board of Directors annually appoints an Investment Committee consisting of up to eight (8) members, not necessarily from 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 four(4) current or former members of The Community Foundation’s Board of Directors and up to four (4) independent investment experts selected by the committee’s membership.
Investment Management Team
A.F. Drew Alden
Bio
Chief Investment Officer
203-777-7061