Investment Strategy

Philosophy

The Community Foundation’s Board of Trustees is challenged to be responsive to the charitable needs of the communities it serves in the Texas Hill Country and to strive to manage its unrestricted and component funds in such manner as to have income and appreciation sufficient to contribute to these needs. The Foundation’s investment strategy is to prudently invest so that funds will be available to support the community’s charitable needs.

 

Strategy and Targets

To achieve its philanthropic objectives, the Community Foundation requires a total rate of return in a range of 4% to 6%, net of investment management fees, Community Foundation administration fees, and the rate of inflation, as measured by the Consumer Price Index, within the Foundation’s 20-quarter investment time horizon.

 

Allocation

To minimize the effect of negative results produced by one asset class, investments are diversified. Diversification includes intentional division of investments by type, characteristic, and number. The Community Foundation recognizes that asset allocation decisions are the single most important determinant of portfolio risk and return. Thus, it sets long-term asset allocation ranges and reviews them with regularity. Re-balancing of the allocation of assets is considered at least annually to ensure that it is within the Foundation’s investment policy guidelines.

The Foundation is willing to take a moderate risk position, knowing that it will miss some opportunities for growth, in an effort to minimize market losses. The asset allocation strategy below meets the Foundation’s current needs.

Asset Allocation Parameters: 

  • 50-65% Equities
  • 25-40% Fixed Income
  • 0-20% Alternative Investments
  • 1-20% Cash

 

CURRENT INVESTMENT COMMITTEE MEMBERS

Jim McAfee, Committee Chairperson
Joseph Financial Partners

Molly Adams
Security State Bank & Trust

Austin Dickson (Ex Oficio)
Community Foundation of the Texas Hill Country

Charlie Givens
Davidson, Freedle, Espenhover & Overby, P.C.

John Hutcherson
Ameriprise Financial

Michael Waldrop
Fort Sam Houston, U.S. Army