The Community Foundation of Grundy County has contracted with two investment firms to invest all funds in accordance with the Foundation’s Investment Policy Statement: Savant Capital Management in Rockford and Balasa, Dinverno & Foltz in Itasca.
In the spring/summer of 2009, the Community Foundation published a Request for Proposal (RFP) for an investment manager(s). Five firms responded, three were interviewed, and two firms were selected. Before the RFP, the Community Foundation used the investment services of the Greater Kansas City Community Foundation and the Community Foundation of Northern Illinois in Rockford.
Each fund holder can select and recommend that their fund be invested in one of four asset mix allocations: Aggressive (80% equity/20% fixed), Moderate (50% equity/50% fixed), Conservative (20% equity/80% fixed) and Low-Risk (0% equity/100% fixed). The Foundation board of directors reviews each fund holder’s selection to assure that the investment selection meets the fund holder’s charitable goals for the fund. Each fund advisor is given the option annually during July to recommend a change in the fund asset allocation.
The creation and maintenance of an Investment Policy Statement, review of investment manager performance, and selection of investment managers is the responsibility of the Foundation’s Investment Committee. The Committee consists of both board and community members. Current (July 2011) members are: Jim Baum, Kristi Bennington, Ralph Wolter, Tom Tesdal, Charles Gibbs, Dick Sefton, and staff. The report of the Investment Committee is then presented to the full board and action is taken as needed.
The Investment Committee meets in person with representatives of both investment managers on a quarterly basis — Jerry Korabik for Savant and Jim King for BDF. The Foundation receives monthly e-reports from both firms and can access the Foundation’s accounts through the firms’ websites on a daily basis.
The Community Foundation, under certain circumstances and subject to certain conditions, will accept a donor advisor’s recommendation of an outside investment manager to manage a Donor Advised Fund. An outside manager must comply with the Foundation’s Investment Policy Statement and standards established by the Foundation.