The Foundation uses the investment management services of two Illinois firms – Savant Capital Management and Balasa, Dinverno, & Foltz.  These management companies do not sell investment products – rather they help build an investment allocation and strategy which meets the charitable fund goals of the donor (including Agency and Scholarship Funds).The Foundation and our investment managers believe that the most important investment decision is the choice of an appropriate asset allocation between cash, fixed income (bonds) and equities (stocks).  We offer several basic allocations:

  • 80% equities with 20% fixed income;
  • 50% equities with 50% fixed income;
  • 20% equities with 80% fixed income; and
  • 0% equities with 100% fixed income.

In each of these categories, portfolios contain dozens of index funds, ETFs, and special funds, but no individual stocks or bonds.  It is this global diversification which helps smooth the risk and return over shorter periods while increasing return over long horizons.  No investments are held by the Foundation, or the management company, but rather by the institutional division of Charles Schwab.

Investment Goals and Fees

The investment goal of our 50/50 mix is a total return of 4% after fees over a period of time.  Short-term cash and fixed income investments earn less in the current market.  The Foundation collects a 2% annual fee on all funds.

Risk

Funds at the Community Foundation are not insured, nor is there any guarantee of specific returns nor a guarantee that the principal may not decrease as a result of declining investments.