Recently Mike Nellis announced new investment options for our fundholders. This new offering reflects over a year of hard work by the Foundation’s Investment Committee —made up of outstanding business leaders, investment professionals and our investment advisor DiMeo Schneider & Associates, as well as our staff. Inspired by feedback from fundholders, the Investment Committee designed four options that we believe are uniquely suited to the range of objectives of our diverse fundholders.
One of the most interesting hats I wear as CFO at the Foundation is to be the staff liaison to the Investment Committee. It is a remarkable group of individuals that volunteer their time and expertise to steward our philanthropic assets and ensure the Foundation protects the giving power of our charitable funds.
The committee worked to create investment options that speak to donors’ varying objectives and investment philosophies. These new options allow donors to select options that more closely match their time horizon goals as well as their investment cost philosophy.
Some donors desire to invest their funds using an endowment model that ensures their philanthropic legacy will be maintained in perpetuity. Investment options with this long time horizon can take advantage of volatility in the markets and can invest in illiquid assets such as private equity, hedge funds and real assets. However, other donors desire to maintain more liquidity and spend down their fund over 5-7 years, so one of our mid-term options may match their time horizon better.
Another option we are now providing is the choice between active management of your investments and passive management through indexed funds. Passive indexed fund have become very popular in recent years and we believe our donors should have the option for a low-cost investment portfolio. And of course we still have an option for those fundholders who believe active investment managers can outperform the markets. The Foundation’s own discretionary endowment funds will continue to be invested in our long-term active management option.
We hope that these investment options will provide a choice that matches your own philanthropic goals and investment philosophy.