Investments

Investment Objectives 2016

Investment Objectives 2016 with agency fees (PDF)

The primary investment objective of the Community Foundation of Snohomish County is to preserve the real value (inflation adjusted) of current assets and future gifts. The Foundation manages its endowed and operational assets according to guidelines established by the Board of Directors and Finance Committee. The allocation policy is designed to provide an optimal asset mix for the portfolio, emphasizing diversification in order to lower risk and maximize total return.

 

Lower Limit Strategic Allocation Upper Limit
Domestic Large-Cap Equity Growth 10% 15% 25%
Domestic Large-Cap Equity Value 10% 15% 25%
Small/Mid-Cap Equity 0% 10% 25%
International Equity 5% 10% 30%
Alternative 0% 3% 25%
Fixed Income 25% 35% 50%
Cash Equivalent 0% 5% 10%
Real Assets 0% 7% 10%

 

The Foundation’s investment goal is to earn, through a combination of appreciation and income, an annual return net of fees of at least 5-7%.

 

Year Rate of Return (gross) Fee Rate of Return (net)
2016 7.75% 1.75% 6%
2015 0.03% 1.75% -1.72%
2014 5.70% 1.75% 3.95%
2013 17.30% 1.75% 15.55%
2012 11.50% 1.75% 9.75%
2011 2.61% 1.75% .86%
2010 13.56% 1.75% 11.81%
2009 21.34% 1.75% 19.59%
2008 -21.74% 1.75% -23.49%
2007 7.49% 1.75% 5.74%
2006 11.69% 1.75% 9.94%
2005 6.65% 1.75% 4.90%
2004 10.88% 1.75% 9.13%
2003 8.11% 1.75% 6.36%

 

Harbour Investment Management, Wells Fargo Private Banking and D.A. Davidson & Co. function as our investment consultants to provide oversight, guidance, design and implementation of the Community Foundation’s portfolio. Our Finance Committee meets with investment managers quarterly and compares the investments to the benchmark for that asset class. The Foundation also utilizes local banks for certificates of deposit when appropriate. As with all investments there is a risk that the fund may decline in value due to negative investment returns. Past investment results are not a guarantee of future performance.

Updated February 2017