Overview
The Topeka Community Foundation takes seriously its stewardship responsibility as a manager of many different donor funds. It recognizes that each donation, no matter the size, reflects an implicit trust in the Community Foundation's ability to invest resources wisely in accordance with each donor's charitable wishes.
Primary responsibility for managing the Topeka Community Foundation's investment portfolios has been delegated by the Board of Directors to the Asset Management Committee. This committee sets policy, establishes performance benchmarks and continually monitors the performance of the Community Foundation's portfolios against these policies and benchmarks.
Investment Objectives
The Foundation offers its donors two investment options, the Growth Portfolio and the Income Portfolio.
Growth Portfolio
The Foundation's growth portfolio investment philosophy reflects two fiscal objectives:
- Preservation of capital.
Preservation of purchasing power by striving for long-term returns that either match or exceed the Foundation’s spending policy, the rate of inflation and investment fees.
The long-term investment objective of the growth portfolio is to earn a rate of return, net of all fees, in excess of a 80% S & P 500 Index/20% Barclays Capital Aggregate Government/Corporate Bond Index benchmark over rolling five and ten-year periods.
Income Portfolio
The income portfolio is designed to provide a vehicle for those donors whose primary objective is the preservation of capital. The rate of income credited will vary, reflecting competitive short-term interest rates. The Asset Management Committee will review market conditions each year and establish a competitive market rate to which the portfolio’s income distribution will be pegged. It is generally expected that the portfolio rate will be tied to the savings account rate being paid by local banking institutions. The interest income will be credited to the donor’s fund on a monthly basis.
Security holdings in the Income Portfolio generally will consist of fixed income mutual funds or commingled funds that are short term and or income oriented.
Performance Evaluation
The Asset Management Committee will meet at least four times a year to review investment results and adherence to investment objectives and guidelines. The performance reports from the individual fund managers or other pertinent information will be summarized and compiled into a standard package of investment reports for review during these meetings as well as on as-needed basis between meetings.
