Investment Information

Gifts given to Kalamazoo Community Foundation become part of a permanent endowment, which means they will benefit our community forever. We still have the original gift from W.E. and Carrie "Carol" Upjohn in 1925. KZCF invests the gifts we receive so they grow and maximize the resources available to us to address both immediate and long-term 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. KZCF 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 are committed to an investment strategy of disciplined asset allocation, regular rebalancing, minimizing fees and expenses, and not reacting to near-term market pressures or new investment fads.

Quarterly Investment Performance

The chart below illustrates KZCF's investment performance for 2nd Quarter 2018.

Core Assets Qtr 2 YTD 3 Yrs 5 Yrs 7 Yrs 10 Yrs
Moderate Growth
Actual 1.1% -0.1% 7.7% 8.9% 8.5% 8.3%
Benchmark (1) 1.5% 0.7% 7.9% 8.6% 8.1% 7.4%
Income & Growth
Actual 1.6% 0.4% 6.8% 7.9% 8.3% 8.0%
Benchmark (2) 1.6% 0.6% 6.9% 7.9% 8.0% 7.2%

Investment performance is net of manager fees and derived from core KZCF 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. 

(1) 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).

(2) 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.


More Information About Our Investments:
Our Core Investment Managers
KZCF Financial Investment Committee
Investment Policy For Endowed Funds
Investment Policy For Non-Endowed Funds
Spending Policy For Restricted Endowed Funds
Spending Policy For Unrestricted Endowed Funds
How Can You Help Build A Stronger Community?

Investment Performance News Stories:
KZCF Takes Top Honors In Financial Performance
A Message From Susan Springgate, VP of Finance
In Their Words: Wes Freeland and FIC Chairperson Bob Salisbury

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