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Kalamazoo Community Foundation Investment Policy
Helping charitable dollars grow
The Kalamazoo Community Foundation plays a unique role in our community. It exists to encourage community-based philanthropy and also to maximize the charitable gifts of its donors long term. The Community Foundation employs a moderate growth strategy for its endowed funds, which is 70 percent equities, 25 percent fixed income, and 5 percent real estate. Because the Community Foundation is fully committed to protecting the endowed assets entrusted to it, the original gift(s) (i.e. principal) will never be distributed. This policy ensures the endowed assets of the Community Foundation will be with our community forever.
Investment Objectives for Endowed Funds
• Provide grantmaking dollars, subject to a spending policy, to address immediate and expanding
community needs.
• Preserve the original value of gifts in terms of inflation.
• Grow the assets in real terms as market conditions allow, thereby adding greater resources to meet
community needs in the future.
The Kalamazoo Community Foundation employs an investment model principled on a consistent culture, structure, discipline and asset allocation. It is a model that has produced excellent results in both up and down markets over extended periods and is expected to do so over the long term. The model has a tilt toward small cap and value equities.
Investment Managers
Barclays Global Investors of San Francisco manages the S&P 500 Index Fund; Dimensional Fund Advisors of Santa Monica, an enhanced index manager, manages four equity strategies and the real estate investment trusts strategy; RREEF America II, Inc. of San Francisco, Chicago and New York manages the real estate equity strategy; and Jennison Associates of Boston and New York manages two fixed income strategies.
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Quarterly Investment Performance
First Quarter 2010
The chart below illustrates the Kalamazoo Community Foundation’s quarterly investment performance* for the first quarter of 2010 (January through March).
| Core Assets |
Quarter 1 |
YTD |
1 Year |
3 Years |
5 Years |
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| Moderate Growth Performance |
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| Actual |
5.0% |
5.0% |
48.2% |
-0.5% |
4.3% |
| Benchmark |
4.9% |
4.9% |
44.5% |
-3.0% |
3.0% |
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| Income and Growth Performance |
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| Actual |
3.4% |
3.4% |
26.2% |
2.8% |
4.6% |
| Benchmark |
3.4% |
3.4% |
22.2% |
1.4% |
3.9% |
The Kalamazoo Community Foundation uses appropriate time-weighted benchmarks to measure return. For detailed information, please contact Wes Freeland at (269) 381-4416 or wfreeland@kalfound.org.
* Investment performance is net of manager fees.
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