The Community Foundation is entrusted with the investment management of its funds and with carrying out the grantmaking wishes of its donors in the best interests of the Cleveland Bradly County community. Because the Community Foundation expects to operate in perpetuity, wise stewardship of its funds is essential to the Foundation’s mission. To that end, the Board of Directors has adopted an investment policy and appoints an Investment Committee to oversee the process and select and monitor investment managers.
The Basics of Long-Term Investing at the Community Foundation
The Community Foundation seeks through its investment policy to maintain or increase the real value of the endowment principal and its distributions over the long-term while funding current needs at an appropriate level. To carry out this mission, the Investment Committee has established investment objectives and offensive and defensive market strategies employing equity, fixed income and cash investments as appropriate. The Foundation’s investment priorities are:
- Preservation of principal
- Moderate growth in principal to offset the effects of inflation
- Sufficient income commensurate with safety of principal and current program needs
The Foundation has adopted a policy of investing funds in commingled management accounts. This pooling of investments supports closer supervision of the investment portfolio and makes available to the Foundation’s individual funds, regardless of size, the advantages of participation in a diversified portfolio of investments.
- Created and managed as a long-term investment option, The Foundation’s commingled fund is the default investment pool for endowed funds. It may also be an appropriate option for non-endowed funds with a time-horizon for grants that is longer than five years.
- The short-term fund is the default investment pool for non-endowed funds. Funds in this pool are in secure investments and are limited to bank accounts, overnight repos, and certificates of deposit.
Investment Alliance Program
The Community Foundation created the Investment Alliance Program for approved investment firms. The purpose of this program is to increase charitable giving in our community through a cooperative partnership between the Foundation and selected investment management firms. Donors who wish to establish a charitable fund in excess of $250,000 are welcome to suggest to the Foundation’s Investment Committee that the assets be managed by the investment firm or manager they prefer. The Community Foundation would then begin a formal business relationship with qualified Investment Alliance partners.
The Community Foundation Investment Committee provides oversight of the Foundation’s investments by reviewing policy and monitoring the investment management of fund assets.
Chair: Alan Smith, Chairman – Community Trust & Banking Company. Alan also serves on the United Way Investment Committee.
Catherine Boettner, Business Strategist. Cathy has 3 years experience as an Account Executive for Dean Witter Reynolds and chaired the Investment Policy Committee for the Cleveland State Foundation.
Ed McIntire, Physician – Tennessee Valley Urology. Ed is a small business owner.
Jack Robbins, Account Executive – J. Smith Lanier. Jack also serves on the Chattanooga Metro YMCA Endowment Committee.
William “Buster” Stuart, Financial Advisor – Ameriprise. Buster has 28 years of experience as a Wealth Manager, is a Certified Financial Planner and a member of Trustee Investment Committee.
Tom Thomas, Branch Manager and Financial Advisor – Raymond James Financial Services. Tom has 21 years of experience as a Wealth Manager and is a Certified Financial Planner.