Investment Strategies and PerformanceGrowth of Assets The Community Foundation Alliance’s total assets have grown from $400,000 at the end of our first year (1991) to $62.2 million at the end of our most recent fiscal year (June 30, 2007).
Stewardship of Assets The Alliance carefully manages long-term charitable funds primarily for the benefit of the communities of Daviess, Gibson, Knox, Perry, Pike, Posey, Spencer, Vanderburgh, and Warrick counties in Indiana. Stewardship of the funds entrusted to us is a primary responsibility of the board of directors. The Alliance’s investment committee, appointed by and reporting to the board, has immediate oversight of all aspects of the Alliance’s financial management, including investment policy, guidance, and review. The committee is comprised of board members with specific experience and expertise in financial and investment management. In addition, financial statements and accounting policies and controls are audited annually by BKD LLP, an independent auditing firm. Download a copy of our 2007 Audit Report (Adobe Reader required) or contact us to request a copy by mail.
Approach to Investing The Alliance espouses a long-term approach to investing. A consistent and balanced approach to investing assets is fundamental to the Alliance’s overall investment goal, which is to build and maintain community capital for future use while at the same time supporting current community needs. Our goal is to earn a reasonable return on its investments while maintaining a diversified, high-quality portfolio without undue risk of significant capital depreciation.
Investment Performance Overall for fiscal year 2007, the Alliance experienced a 13.72% return on investments; the average return of the past three years was 9.86%. Total grantmaking increased from $1.3 million in 2006 to nearly $1.6 million in 2007, an increase of 22%.
Allocation of Assets under Investment Our investment policy, established and periodically reviewed by the investment committee, utilizes prudent investment strategies tailored to the unique needs of its charitable funds. It is designed to result in growth sufficient to maintain the real value of a fund’s principal balance and grantmaking capacity over time. This is accomplished through carefully balanced portfolios: domestic equities (45%), fix-income (25%), international equities (10%), real estate (10%), and alternative investments (10%).
Investment Management The Alliance employs professional investment management firms, which the investment committee selects and reviews regularly, with the assistance of a professional and independent consultant (Merrill Lynch). The Alliance’s endowed investments are currently managed by Victory Aletheia Research and Management, Capital Management, Eagle Capital Management, Earnest Partners, Urdang, Nuveen, Lord Abbett, and Vega Global/Coast. |
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 Community Foundation Alliance Inc.123 N.W. Fourth Street, Suite 322 • Evansville, Indiana 47708.1712 Voice 812.429.1191 • Toll free 877.429.1191 • Fax 812.429.0840 |
