Community Foundation for Palm Beach and Martin Counties

Investment Management

The endowment fund is structured for long-term growth with a broadly diversified mix of asset classes and styles. Experience has shown that financial markets and inflation rates are cyclical and, therefore, control of volatility will best be achieved through diversification of asset classes and selection of managers of diverse styles.

Since the selection and weighting of asset classes are the primary determinants of investment return and volatility, asset choice is carefully considered by the investment committee in accordance with a systematic allocation process derived from consultation with its investment consulting firm. The international, alternative, and real estate segments are intended to reduce volatility and the fund’s reliance on domestic financial markets.

Investment managers are appointed following a systematic search for those with demonstrated quality in the style desired. They are evaluated based on length of experience, depth of talent, and proven abilities. The Community Foundation ensures equal access for minority investment managers.

The investment manager’s performance is evaluated each quarter based on a comparison to an appropriate market index rate of return and an overall rate of return of peers with comparable investment styles or portfolio objectives. No investment manager may invest more than 10% of its fund in the securities of any one issuer.

The investment performance is structured to seek returns in excess of the targeted spending policy, costs and inflation and is designed to maximize available funds for current grantmaking, while increasing the endowment to benefit future generations.

Meet our Investment Committee.