Our Investment Philosophy
We invest your funds wisely, transparently and prudently so they will be available for grantmaking now and for generations to come.
The Board of Directors has delegated oversight of the Portfolio to the Greater Green Bay Community Foundation Investment Committee. This Investment Committee of seasoned experts, in partnership with Fund Evaluation Group (FEG), a professional investment advisory firm, provide a portfolio strategy that accounts for the long-term nature of the Community Foundation.
Here's how our investments are managed
- Our Investment Objective, Endowed Funds
The primary investment objective of the Portfolio is to achieve an annualized total return (net of fees and expenses), through appreciation and income, equal to or greater than the rate of inflation (as measured by the broad, domestic Consumer Price Index) plus any spending thus, at a minimum, maintaining the purchasing power of the Portfolio. The assets are to be managed in a manner that will meet the primary investment objective, while at the same time attempting to limit volatility in year-to-year spending.
- Where We Invest
The Investment Committee believes that investing in assets with higher return expectations outweighs their short-term volatility risk. The majority of assets will be invested in equity or equity-like securities, including real estate (REITS). Commodities will be used primarily as an inflation hedge and for further diversification.
Fixed income and low volatility/absolute return strategies will be used to lower short-term volatility and provide stability. Cash is not a strategic asset of the Portfolio, but is a residual to the investment process and used to meet short-term liquidity needs.
- Our Fiduciary Duty
The Committee shall exercise prudence and appropriate care in accordance with the Uniform Prudent Investor Act (UPIA). UPIA requires fiduciaries to apply the standard of prudence “to any investment as part of the total portfolio, rather than to individual investments.”
The Committee manages the Portfolio as a prudent investor would, in light of the purposes, scope, objectives and other relevant circumstances, as well as exercising reasonable care, skill, and caution while being applied to investments of the portfolio as a whole and the overall investment strategy. The Committee has a duty to diversify the investments and perform to fundamental fiduciary duties of prudence, loyalty, and impartiality.
- Our Spending Policy
The targeted spending amount for the Community Foundation is 5% of the previous 20-quarter average of the portfolio's market value, based on a June 30 anniversary date.