Semi-Annual Investment Performance Meeting & Conference Call. 8:00 am August 30, 2017 Dial-in number: Access code: #

Transcription

1 Semi-Annual Investment Performance Meeting & Conference Call 8:00 am August 30, 2017 Dial-in number: Access code: #

2 Agenda Conference Call Begins at 8:00 AM Investment Performance 2Q 2017 Managers & Asset Allocation Model Registered Investment Adviser Reporting Upcoming Events & Workshops 2

3 Investment Performance 1 For the periods ended June 30, 2017 Net of Expenses* * The footnotes on the following page are integral to these investment performance figures, and the two should be read together. 3

4 Footnotes to Investment Performance for periods ended June 30, ) Investment data was externally reviewed and reported on 19 July 2017 by Colonial Consulting LLC, New York, NY. Past performance is no indication of future results. The materials are provided for information purposes only, and do not constitute investment advice or an offer or solicitation to buy or sell any security, service, or investment product. Returns are calculated by Colonial Consulting, LLC, New York, NY, and are presented net of expenses. Net of expenses means net of all direct costs incurred in the operation of the Commingled Fund as set forth in the Commingled Fund Information Memorandum. 2) The inception date of January 1, 1995, or 22.5 years. 3) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The market benchmark that correspond to the long-term asset allocation model includes: 50% MSCI All Country World Index; 20% HFRI Fund of Funds Index; 5% CPI plus 5%; 5% JP Morgan EMBI Plus Index; 5% Citigroup World Government Bond Index; 5% Barclays Long Treasury Index; and 5% Citigroup Inflation Linked Index 4) The passive market results represent 60% of the MSCI AC World Index and 40% of the Barclays Capital Aggregate. 5) The inception date of January 1, 1995, or 22.5 years, pertains to Bank of America and Wells Fargo. Key Bank s inception date was May 31, 2007, or years. 6) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 22.5% S&P 500 Index, 17.5% MSCI EAFE, 10% HFRI Hedged Equity, 10% HFRI Fund of Funds, 6% Citigroup Inflation Linked, 5% S&P 500 Index +5%, 5% MSCI Emerging Market, 5% JP Morgan EMBI Plus, 5% Russell 2000, 5% NCREIF Real Estate, 5% Citigroup World Government Bond, and 4% Barclays Long Treasury Index. 7) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 50% MSCI AC World, 20% HFRI Fund of Funds, 10% CPI + 5%, 5% JP Morgan EMBI Plus, 5% Citigroup World Government Bond, and 5% Barclays Long Treasury, and 5% Citigroup Inflation Linked. 8) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 53% S&P 500 Index, 5% MSCI EAFE, 30% Barclay s Government/Corporate Index, 7% S&P Mid-cap Index, 3% Russell 2000 Index, and 2% MSCI Emerging Market Index. 4

5 Total Fund Corporation * Investment Performance and Asset Allocation Summary For the periods ended June 30, 2017 Net of Expenses 5

6 The Community Foundation For Greater New Haven Corporation Assets Asset Allocation Comparison June 30,

7 The Community Foundation For Greater New Haven Corporation Assets Asset Allocation Comparison June 30,

8 Investment Performance 1 For the periods ended July 31, 2017 Net of Expenses* * The footnotes on the following page are integral to these investment performance figures, and the two should be read together. 8

9 Footnotes to Investment Performance for periods ended July 31, ) Investment data was externally reviewed and reported on 16 August 2017 by Colonial Consulting LLC, New York, NY. Past performance is no indication of future results. The materials are provided for information purposes only, and do not constitute investment advice or an offer or solicitation to buy or sell any security, service, or investment product. Returns are calculated by Colonial Consulting, LLC, New York, NY, and are presented net of expenses. Net of expenses means net of all direct costs incurred in the operation of the Commingled Fund as set forth in the Commingled Fund Information Memorandum. 2) The inception date of January 1, 1995, or years. 3) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The market benchmark that correspond to the long-term asset allocation model includes: 50% MSCI All Country World Index; 20% HFRI Fund of Funds Index; 5% CPI plus 5%; 5% JP Morgan EMBI Plus Index; 5% Citigroup World Government Bond Index; 5% Barclays Long Treasury Index; and 5% Citigroup Inflation Linked Index 4) The passive market results represent 60% of the MSCI AC World Index and 40% of the Barclays Capital Aggregate. 5) The inception date of January 1, 1995, or years, pertains to Bank of America and Wells Fargo. Key Bank s inception date was May 31, 2007, or years. 6) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 22.5% S&P 500 Index, 17.5% MSCI EAFE, 10% HFRI Hedged Equity, 10% HFRI Fund of Funds, 6% Citigroup Inflation Linked, 5% S&P 500 Index +5%, 5% MSCI Emerging Market, 5% JP Morgan EMBI Plus, 5% Russell 2000, 5% NCREIF Real Estate, 5% Citigroup World Government Bond, and 4% Barclays Long Treasury Index. 7) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 50% MSCI AC World, 20% HFRI Fund of Funds, 10% CPI + 5%, 5% JP Morgan EMBI Plus, 5% Citigroup World Government Bond, and 5% Barclays Long Treasury, and 5% Citigroup Inflation Linked. 8) The market benchmark is equal to the rate of return produced by specific market indices representing the asset classes contained in the asset allocation model, with such market indices weighted in accordance with that model. The current market benchmark includes: 53% S&P 500 Index, 5% MSCI EAFE, 30% Barclay s Government/Corporate Index, 7% S&P Mid-cap Index, 3% Russell 2000 Index, and 2% MSCI Emerging Market Index. 9

10 The Community Foundation for Greater New Haven, Inc. 1 Endowment Managers * Asset Class Manager Strategy/Style Global Equity Adage Capital Partners (2006) Large Cap Global Equity Ashe (2014) Concentrated (EM) Global Equity Health Care Investment Fund (2012) Concentrated Global Equity Cat Rock (2015) Concentrated (EM) Global Equity Lansdowne (2015) All Cap Global Equity Barker LP (2016) Concentrated (EM) Global Equity Hound Partners (2015) Concentrated (EM) Global Equity Acacia (2015) All-Cap Global Equity Artisan (2012) Large Cap Global Equity Cevian Partners (2011) Large/Mid Cap Global Equity Effisimo (2015) All-Cap- Japan Global Equity Highclere (2014) Emerging Markets Global Equity Parvus European Fund (2016) Concentrated All - Cap Global Equity Tybourne Capital (2016) All Cap Global Equity Westwood (2015) Emerging Markets Bonds Colchester Global (2008) Global Sovereign Bonds Mondrian Partners (2010) Emerging Markets Bonds I R & M (2010) TIPS Bonds Vanguard (2010) Treasuries Hedged Lansdowne Fund, Ltd. (2013) Equity Hedged Canyon Value, Ltd. (2013) Credit Hedged Hengistbury Investment Partners (2017) Equity Hedged Half-Sky (2017) Equity Hedged Hitchwood (2015) Equity Hedged Permian Capital (2015) Equity Hedged Nitorum Capital (2016) Equity Private Assets Denham (2012) Commodities Private Assets GEM Realty Capital (2013) Real Estate Private Assets Eightfold Capital (2016) CMBS Private Assets Healthy Ventures (2017) Private Equity - Healthcare Private Assets Juniper Capital (2016) Private Equity- Energy Private Assets LBA Realty (2009) Real Estate Private Assets Merit Energy (2011) Energy Private Assets Metropolitan (2005) Real Estate Private Assets Patron Capital Partners (2015) Real Estate Private Assets Permit (2013) Credit Private Assets Raven Capital Management (2015) Private Equity - Credit Private Assets Resource Land Holdings (2015) Private Equity- Natural Resources Private Assets Shorenstein Fund Nine (2008) Real Estate Private Assets TIFF Partners (1999) Private Equity Private Assets Varde (2008) Credit Private Assets Warburg Pincus (2014) Private Equity - Energy 1 A Connecticut registered investment adviser. *Endowment Managers approved by The Community Foundation s Investment Committee as of June 12,

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13 Council on Foundations Peer Investment Performance Survey All Periods Ending June 30, 2017 Median Annualized Rates of Return: All Community Foundations (Expressed as a Percentage, and Net of Expenses) Latest 1 Latest 3 Latest 5 Latest 7 Latest 10 Latest 15 Latest 20 Year Years Years Years Years Years Years n = 148 n = 142 n = 137 n = 134 n = 119 n = 88 n = 53 All Community Foundations, Net of Fees 13.05% 3.87% 7.84% 8.37% 4.27% 6.32% 6.10% Peer Group:$ 500 Million and Over 13.84% 4.09% 7.86% 8.52% 4.64% 6.84% 6.69% The Community Foundation for Greater New Haven, Inc. (The Corporation) 14.90% 6.50% 10.30% 10.30% 5.80% 8.10% 7.30% Surplus Generated by Corporation vs. All Community Foundations (Annualized) 1.85% 2.63% 2.46% 1.93% 1.53% 1.78% 1.20% Surplus Generated by Corporation vs. Peer Group (Annualized) 1.06% 2.41% 2.44% 1.78% 1.16% 1.26% 0.61% 13

14 All Participants $500 and over $250 to $499.9 $100 to $249.9 $50 to $99.9 $25 to $49.9 $5 to $24.9 $0 to $4.9 U.S. Large Cap Equity 24.5% 22.6% 28.3% 24.3% 27.3% 31.9% 36.6% 27.7% U.S. Mid Cap Equity 2.8% 2.0% 2.8% 4.4% 3.6% 3.7% 3.2% 7.9% U.S. Small Cap Equity 4.8% 3.6% 7.2% 6.6% 4.2% 4.8% 5.4% 4.0% Total US Equity 32.1% 28.1% 38.2% 35.3% 35.1% 40.4% 45.3% 39.6% Non-US Large/Mid Cap Equity 17.7% 17.9% 15.2% 18.4% 20.6% 16.4% 12.4% 14.6% Non-US Small Cap Equity 0.6% 0.0% 1.3% 1.1% 1.7% 1.0% 0.9% 4.5% Emerging Markets Equity 5.9% 5.7% 6.4% 6.3% 5.2% 5.7% 2.3% 3.4% Total Non-US Equity 24.2% 23.6% 23.0% 25.8% 27.5% 23.1% 15.6% 22.6% Total Equities 56.3% 51.7% 61.2% 61.2% 62.6% 63.5% 60.8% 62.2% Domestic Fixed Income 13.1% 12.1% 12.2% 15.5% 14.1% 14.8% 23.7% 14.3% High Yield Fixed Income 1.6% 1.4% 1.8% 1.9% 1.8% 1.1% 0.0% 3.4% International Fixed Income 2.6% 2.8% 2.4% 2.1% 3.0% 1.7% 2.9% 3.3% Total Fixed 17.3% 16.3% 16.4% 19.6% 18.9% 17.6% 26.6% 20.9% Hedge Funds 11.8% 14.5% 9.5% 8.6% 8.4% 9.2% 1.6% 10.1% Private Equity 4.3% 6.2% 2.6% 2.3% 1.8% 0.0% 0.0% 0.0% Real Estate 1.5% 0.8% 2.3% 2.6% 2.7% 0.8% 1.1% 2.9% Real Assets 2.6% 2.8% 1.4% 2.6% 3.8% 2.1% 0.7% 1.3% Total Alternatives 20.2% 24.2% 15.8% 16.0% 16.7% 12.2% 3.3% 14.3% Total Other 3.7% 4.9% 4.1% 1.5% 0.3% 5.0% 3.8% 0.0% Total Cash/Equivalents 2.5% 2.9% 2.5% 1.8% 1.6% 1.7% 5.4% 2.6% Grand Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% n = 108 n = 18 n = 10 n = 29 n = 22 n = 20 n = 8 n = 1 1 Colonial Consulting, LLC and Fiscal & Administrative Officers Group 14

15 The Corporation 3.5% 9.8% 14.9% 6.5% 10.3% 10.3% 5.8% 8.1% 7.3% 15

16 Registered Investment Adviser The Community Foundation s corporate subsidiary registered and was approved as a Connecticut registered investment adviser. The Community Foundation understands the importance of its services to our nonprofit customers both as the investment manager of your organization s charitable assets and with respect to the financial reporting on your organization fund s results. The Community Foundation decided in 2013 to voluntarily register under the Connecticut Uniform Securities Act (CUSA) as part of our on-going efforts to provide local nonprofits with the comfort of knowing that their endowmentlike assets are managed according to the highest industry standards and best practices. Our continued commitment to provide timely and valuable financial information about your fund includes a monthly financial report, which will be available on/about the 24 th of each month. This report is in addition to both the currently issued monthly investment management results and the quarterly reporting on both financial and investment management activities. By having all financial information secured in a password protected environment, we can maintain the confidentiality and integrity of the data. If you have any questions or would like to discuss any aspect of your organization fund, please feel free to contact Jennifer Glover-Keller, Investment Services Manager, at or jglover@cfgnh.org; or A.F. Drew Alden, Senior Vice President for Investments, Chief Financial Officer, and Chief Compliance Officer at or aalden@cfgnh.org. We appreciate the opportunity to assist you and your organization with the stewardship of its charitable assets. 16

17 DonorCentral For issues involving Donor Central, please contact Jennifer Glover-Keller /7 Access to Fund Information Fund Summary Quarterly Investment Performance Monthly & Quarterly Fund Statements 17

18 Upcoming Events & Workshops Capacity Building Activities Introduction to Bequests: Sept. 27 Strategic Financial Planning for Nonprofits: Oct. 17 For more information, contact Jackie Downing or Foundation Events New Haven Healthy Start 20th Anniversary: Sept. 7 Community Breakfast Tour: Sept. 20 For more information, events@cfgnh.org 18

19 A.F. Drew Alden Senior Vice President for Investments, Chief Financial Officer, and Chief Compliance Officer P: F: