Our Investment Approach
Embracing Best Practices and Meeting Long-term Objectives
The Community Foundation believes that strategic asset allocation provides a solid foundation upon which proper investment goals and strategies to achieve those goals can be built. By focusing on risk-adjusted returns using a blend of passive investment strategies and active strategies in less efficient asset classes, the long-term goals of the donors and the organization can most reasonably be met.
Part of the application of this belief is a particular focus on monitoring the decision-makers in the investment management process so that there is accountability for what can be measured and managed. Simply put, this means managers are evaluated on the actual decisions they make separate from non-decision-based activities such as policy-required rebalancing, market timing, and so on. This assures the Foundation and our donors that there is a transparent understating of manager performance and value based on the actual decisions of the manager and not occurrences outside their control.
More simply put, using this process we are able to separate overall investment performance from manger-based decisions and evaluate managers based on their skills alone.