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INVESTMENT PROGRAM |
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The Greater New Orleans Foundation's investment philosophy reflects three fiscal objectives:
- Preserve capital.
- Earn competitive total returns within risk tolerances established by the Foundation.
- Preserve purchasing power by striving for long-term returns that either match or exceed the annual grant distribution requirement, fees and inflation.
To achieve these objectives, the Foundation's investment portfolio consists of three diversified investment portfolios: the money-market portfolio, the fixed-income portfolio and the equity portfolio. Each portfolio may reflect a variety of investment management styles.
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INVESTMENT PERFORMANCE - DECEMBER 31, 2007
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Trailing |
Annualized |
Returns |
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Current
Quarter |
Calendar
Year-to-Date |
One Year
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Three Years
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Five Years
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Endowment Performance |
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GNOF Endowment
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0.85
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10.34
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10.34
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10.14
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13.05
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Policy Portfolio*
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0.49
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9.72
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9.72
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10.05
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NA
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Adjusted Policy Portfolio** |
0.80 |
10.96 |
10.96 |
10.14 |
NA |
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Dow Jones Wilshire 5000 |
-3.08 |
5.73 |
5.73 |
9.21 |
14.07 |
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MSCI All Country World ex US |
-0.66 |
16.65 |
16.65 |
19.88 |
24.02 |
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10-Year Treasury |
5.30 |
9.77 |
9.77 |
4.33 |
3.81 |
NA = Not available
Note: Performance prior to 2Q 2005 was provided by underlying managers.
* The policy portfolio represents a weighted average of the relevant market indices for each asset class based on the GNOF's target allocations.
** The adjusted policy portfolio represents a weighted average of the relevant market indices for each asset class based on GNOF's average of beginning and ending allocations to the asset class during the quarter, i.e., it is based on actual rather than policy allocations.
Past performance does not guarantee future results. Investment return and principal value will fluctuate.
This account summary should be reviewed in conjunction with the underlying funds' detailed account statements, which provide additional information regarding specific transactions. TAS relies on outside parties to provide information about non-TIFF investment vehicles and cannot assure the accuracy or completeness of such information.
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INVESTMENT STRATEGIES FOR FUNDS
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Non-Endowed Funds |
Endowed Funds |
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Fund Profile |
Funds with a duration of six to 18 months. Funds with low tolerance for risk inherent in investment in securities. |
Funds with a long-term perspective. |
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Spending Policy |
Principal and total return may be spent without limitation. |
4% of the average of a rolling 12-quarter average may be spent each year. |
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Investment Objective
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Preservation of capital through investment primarily in cash, money market funds, short-term bonds and other liquid instruments. |
Long-term capital growth with reduced risk through diversification across stocks, bonds and short-term and money market instruments. Asset allocation goals are 60% equities and 40% fixed income instruments. |
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Benefits |
Allows short-term funds to access professional investment management. |
Allows long-term funds to access capital appreciation with reduced risk through asset allocation and diversification. |
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INVESTMENT MANAGEMENT
Select members of GNOF’s Board of Trustees serve on the Investment Committee and are responsible for the oversight of GNOF’s investment strategy, policies and practices. A roster of these members is available upon request by contacting GNOF’s Vice President of Finance.
Investment fund management for GNOF is handled by The Investment Fund for Foundations (TIFF). This organization seeks to improve the investment returns of endowed charities by making available to them a series of multi-manager investment vehicles plus resources aimed at enhancing fiduciaries’ knowledge of investing. For more information regarding TIFF, please visit www.tiff.org or contact GNOF’s Vice President of Finance.
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