Canton Community Foundation

Investment Management

The purpose of the Foundation is to accumulate a pool of assets sufficient to build community capital for future use with the corresponding obligation to support current and future community needs. These assets are to be invested in a manner consistent with statutory fiduciary responsibilities.

 

Finance/Investment Committee

The Finance/Investment Committee is responsible for recommending investment policies and strategies, trustees, investment managers and/or advisers, and other fiduciaries, and monitoring the performance of the trustees, managers, advisers and other fiduciaries. The investment policies of the Foundation will be carried out by means of investment strategies that reflect continuous evaluation of changing investment environments, judgment regarding the allocation of the Foundation’s assets among different kinds of investment opportunities, identification of appropriate investment vehicles, and the making of specific investment decisions.

 

Spending Policy

Income available for spending is determined by a total return system. The amount to be spent in the coming year is calculated each June 30th and is reviewed and approved by the Finance/Investment Committee annually. The calculation is as follows:

  1. A 12-quarter rolling average of the market value is determined.
  2. The amount to be spent will be 5% of the market value calculated in “a” above.

The “income” that may be spent, as determined in this paragraph, may be drawn from both ordinary income earned (i.e., dividends, interest, rents, royalties, etc.) and appreciation, both earned and unearned. All income and appreciation not needed to meet spending needs is credited directly to the Foundation and investment in the investment pools.

 

Investment Objectives

The primary objective of the investments will be to provide for long-term growth of principal and income without undue exposure to risk enabling the Foundation to make grants on a continuing and reasonably consistent basis. Therefore, the focus will be on consistent long-term capital appreciation, with income generation as a secondary consideration. More specifically, the Finance/Investment Committee seeks returns during a full market cycle that are large enough to preserve and enhance the real, inflation adjusted purchasing power of the Foundation’s assets, while also considering the current spending requirements. In pursuing this objective, the Finance/Investment Committee endeavors to achieve total returns that, over time, are better than the relevant market averages. The Finance/Investment Committee does not expect that in each and every year the investment objective referred to above will necessarily be achieved.

 

Evaluation of Investment Managers

The investment managers will be reviewed on an ongoing basis and evaluated upon the following additional criteria:

  1. Ability to meet or exceed the performance objectives stated in the Investment Policy Statement.
  2. Adherence to the philosophy and style, which were articulated to the Finance/Investment Committee at, or subsequent to, the time the investment manager, was retained.
  3. Ability to meet or exceed the performance of other investment managers who adhere to the same or similar style.
  4. Continuity of personnel and practices at the firm. The investment manager shall immediately notify the Finance/Investment Committee in writing of any material changes in its investment outlook, strategy, portfolio structure, ownership, or senior personnel.

Most Recent Audit

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