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MCF’s investment strategy is designed to achieve superior returns while moderating risk, with the goal of enabling our donors to achieve both their philanthropic and financial objectives.
Investment committee: An investment committee, made up of volunteer professionals in the investment industry, guides the investment strategies of the Foundation.
Committee members are:
- Richard Hogan, Managing Director, Investments, Merrill Lynch Trust Company
- William J. Patterson (chair), Managing Partner, SPO Partners & Co.
- Christopher J. Podoll, President, ClearLake Advisors LLC
- Daniel L. Skaff, Managing Partner, Sienna Ventures
- Julia W. Sze, CFA, Senior Investment Consultant, Family Wealth Group, Wells Fargo Bank
- Debra L. Wetherby, CEO and Portfolio Manager, Wetherby Asset Management
Investment strategy: To meet the philanthropic objectives of donor funds, investments can be made in one or more of five professionally managed investment pools:
Within each pool, MCF hires managers who specialize in particular asset classes to ensure that there is superior performance and adequate diversification. The goal is to benefit from a range of expertise from managers in a way that would be impractical and cost-prohibitive for individual investors.
To meet their philanthropic objectives, donors establishing funds can suggest that assets be invested in any proportion in the four investment pools. For example, for no risk to principal, funds are generally invested solely in the money market pool. Endowed funds, whose objective is to preserve the ability of grants to sustain their financial impact over time, typically split their investments by allocating 75% to either of the equity pools and 25% into the fixed income pool. Funds seeking maximum growth over the long term often find it appropriate to allocate up to 100% in the equity pools.
Performance:
Performance of investment pools through March 31, 2008 (net of investment fees, with benchmarks provided for comparisons):
|
1 Month |
Quarter |
1 Year |
3 Years |
5 Years |
7 Years |
| Equity Pool |
-1.2% |
-7.4% |
0.1% |
9.5% |
14.6% |
6.4% |
| Socially Screened Equity Pool |
-1.6% |
-12.0% |
-14.2% |
2.2% |
N/A |
N/A |
| S&P 500 |
-0.4% |
-9.4% |
-5.1% |
5.8% |
11.3% |
3.7% |
| Fixed Income Pool |
-0.2% |
1.9% |
6.7% |
5.4% |
5.3% |
6.0% |
| Lehman Aggregate |
0.3% |
2.2% |
7.7% |
5.5% |
4.6% |
5.7% |
| Enhanced Cash Pool |
-0.7% |
0.4% |
3.7% |
N/A |
N/A |
N/A |
| 3-mo. Treasury Bill Index |
0.3% |
0.9% |
4.7% |
4.4% |
3.2% |
3.0% |
| Money Market Pool |
0.3% |
0.9% |
4.6% |
4.3% |
3.0% |
2.8% |
| 3-mo. Treasury Bill Index |
0.3% |
0.9% |
4.7% |
4.4% |
3.2% |
3.0% |
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