Investment Information

Gifts given to the Kalamazoo Community Foundation become part of a permanent endowment, which means they will benefit our community forever. We invest the gifts we receive so they grow and maximize the resources available to us to address community needs.

Investment Objectives for Endowed Funds

For endowed funds, our investment goals are to preserve the original value of gifts in terms of inflation, and grow our assets as much as market conditions allow so we can address community needs now and in the future. The Community Foundation employs a moderate growth strategy in which 70 percent are invested in equities, 25 percent in fixed income vehicles, and five percent in real estate funds. We use an investment model based on a consistent culture, structure, discipline and asset allocation. It has produced excellent results in both up and down markets over extended time frames.

Quarterly Investment Performance

The chart below illustrates the Kalamazoo Community Foundation’s quarterly investment performance for the third quarter of 2016.

Core Assets  Q3 
YTD 3 Years 5 Years 7 Years
Moderate Growth Performance
Actual  4.6%  8.8% 6.6% 11.1% 9.4%
Benchmark  4.4%  8.8% 6.5% 10.5% 8.9%
Income and Growth Performance
Actual  2.7%  7.1% 8.1% 10.0% 9.1%
Benchmark  2.2%  6.9% 7.7% 9.7% 8.8%

Investment performance is net of manager fees and derived from core Kalamazoo Community Foundation assets allocated into its two investment strategies. Historic performance for each is then derived from linkages to prior quarterly returns. Performance reflects prior changes in asset allocations while benchmarks assume current allocations.

The Moderate Growth Benchmark is a staged index composite benchmark that has the current composition of the Barclays US Aggregate Bond Index (15 percent); Barclays US Treasury 5-10 Yr TR USD (10 percent); DJ US Select REIT index (2.5 percent); MSCI EAFE Small Cap Index (10 percent); MSCI Emerging Markets Value index (10 percent); Russell 1000 Value index (5 percent); Russell 2000 Value index (10 percent); Russell Micro Cap index (5 percent); S&P 500 index (30 percent); and the NCREIF Fund Index ODCE (2.5 percent).

The Income and Growth Benchmark consists of the S&P 500 index (50 percent) and the Barclays US Aggregate Bond index (50 percent).

For more information about our investment performance, contact Susan Springgate at 269.381.4416 or sspringgate@kalfound.org.

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