Semi-Annual Investment Performance Meeting & Conference Call February 25, 2015 Dial-in number: 1.866.299.7945 Access code: 4202821#
Agenda Conference Begins at 8:00 AM Investment Performance 4Q 2014 Managers & Asset Allocation Model Registered Investment Adviser Update Upcoming Events & Workshops 2
Investment Performance 1 For the periods ended December 31, 2014 Net of Expenses* ------------------Annualized Total Return (%) ---------------- Trailing Trailing Trailing Trailing Trailing Since YTD 1 years 3 years 5 years 7 years 10 years Inception 2 The Corporation 8.6 8.6 13.8 10.0 5.6 7.2 8.9 Market Benchmark 3 Corporation Surplus vs. Market Benchmark 4.7 3.9 4.7 3.9 10.5 3.3 7.9 2.1 2.9 2.7 4.9 2.3 7.4 1.5 Bank of America 5.3 5.3 12.0 9.7 5.2 6.9 8.1 Market Benchmark 3 5.7 5.7 11.2 8.9 4.3 6.0 8.2 vs. benchmark (0.4) (0.4) 0.8 0.8 0.9 0.9 (0.1) Wells Fargo 2.3 2.3 9.7 7.6 3.3 5.1 8.3 Market Benchmark 3 5.7 5.7 11.2 9.0 5.0 6.4 8.4 vs. benchmark (3.4) (3.4) (1.5) (1.6) (1.7) (1.3) (0.1) First Niagara 7.0 7.0 13.2 8.9 7.1 n/a 6.9 Market Benchmark 4 8.7 8.7 13.9 11.3 6.3 5.8 vs. benchmark (1.7) (1.7) (0.7) (2.4) 0.8 1.1 * The footnotes on the following page are integral to these investment performance figures, and the two should be read together. 3
Footnotes to Investment Performance for periods ended December 31, 2014 1 Investment data was externally reviewed and reported on 20 January 2014 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 third-party aggregate sub-advisory expenses. The aggregate sub-advisory expenses are the cumulative actual expenses incurred by each sub-advisor in the Corporation s commingled fund. 2 The inception date of January 1, 1995, or 20.00 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 current market benchmark includes:12.5% S&P 500 Index, 15% MSCI AC World Index, 12.5% MSCI EAFE, 10% HFRI Hedged Equity Index, 10% HFRI Fund of Funds Index, 6% Citigroup Inflation Linked Index, 5% S&P 500 Index +5%, 5% MSCI Emerging Market Index, 5% JP Morgan EMBI Plus Index, 5% Russell 2000 Index, 5% NCREIF Real Estate Index, 5% Citigroup World Government Bond Index, and 4% Barclays Long Treasury Index. 4 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
Total Fund Corporation Investment Performance and Asset Allocation Summary For the periods ended December 31, 2014 Net of Expenses 1 5
Footnotes to Corporate Assets Allocation for periods ended December 31, 2014 6
The Community Foundation For Greater New Haven Corporation Assets Asset Allocation Comparison December 31, 2014 7
The Community Foundation For Greater New Haven Corporation Assets Asset Allocation Comparison December 31, 2014 8
The Community Foundation for Greater New Haven, Inc. 1 Endowment Managers * Asset Class Manager Strategy/Style Large/Mid Cap Adage Capital Partners Diversified Small Cap Ashford Capital Growth Small Cap Dimensional Fund Advisors Value Opportunistic Baker Brothers LP Technology Opportunistic Cevian Partners International Opportunistic Permit Capital RMBS Opportunistic Ashe Mid-Cap - Concentrated Opportunistic Varde Distressed Debt Non-US Developed Artisan Value Non-US Developed Dimensional Fund Advisors Value Non-US Developed Gryphon International Growth Non-US Emerging DFA Emerging Markets Equity Non-US Emerging Westwood Global Emerging Markets Equity Non-US Emerging Highclere International Emerging Markets Equity Bonds Colchester Global Global Sovereign Bonds Mondrian Partners Emerging Markets Debt Bonds I R & M TIPS Bonds Vanguard US Treasuries Multi Strategy T.I.F.F Absolute Return Hedged Forrester Capital, LLP Equity Hedged Hoplite Capital, Ltd. Equity Hedged Lansdowne Fund, Ltd. Equity Hedged Tiger Consumer, Ltd. Equity Hedged Canyon Value, Ltd. Credit/Debt Hedged Eminence Fund, Ltd. Equity Private Assets TIFF Partners Private Equity Private Assets Metropolitan LP Real Estate Private Assets GEM Realty Capital Real Estate Private Assets Shorenstein Fund Nine Real Estate Private Assets LBA Realty Fund IV Real Estate Private Assets Merit Energy Partners, LP Energy/ Oil and Gas Private Assets Warburg Pincus Energy Energy / Diversified Private Assets Denham Capital Commodities 1 A Connecticut registered investment adviser. *Endowment Managers approved by The Community Foundation s Investment Committee as of January 29, 2015. 9
Latest Audited Financials 12/31/14 Investment Advisor (Official Name) Product Name Auditors Available Administrator Custodian Market Value US Large/Mid Cap Equity Adage Management, LLC Adage Capital Partners, LP PWC 12/31/2013 Morgan Stanley Fund Services Custodial Trust Co. $52,060,627 US Small Cap Equity Columbia Partners, LLC Small Cap CTF PWC 12/31/2013 Bank of America Bank of America $2,705,305 Dimensional Fund Advisors, LP Dimensional US Small Cap Value Fund PWC 10/31/2014 State Street State Street / Citibank $4,452,357 Ashford Capital Management, Ashford Capital Management Inc. (Separately Managed Acct) NA NA NA Webster Bank $2,963,002 Non-US Equity Dimensional Fund Advisors, LP Artisan Partners, LP Gryphon International, LLC Emerging Markets Dimensional Fund Advisors, LP Highclere International Investors, LLP Dimensional International Markets Value Fund PWC 10/31/2014 State Street State Street / Citibank $8,255,399 Artisan International Value Ernst & Young, State Street Bank and Fund LLP 9/30/2014 Boston Financial Trust $13,131,548 Gryphon International EAFE Deloitte & Growth Fund Touche, LLP 12/31/2013 BNY Mellon BNY Mellon $5,626,969 Dimensional Emerging Markets Value Fund PWC 10/31/2014 State Street State Street / Citibank $6,911,929 Highclere International Investors Emerging Markets Ernst & Young, SMID Fund LLP 12/31/2013 Northern Trust Northern Trust $7,989,046 Opportunistic Varde Management, LP Varde Fund IX, LP KPMG 12/31/2013 None Wells Fargo $2,288,479 Cevian Capital II, LP Cevian Capital II, Ltd. PWC 12/31/2013 BNY Mellon UBS $12,010,350 Baker Brothers Advisors, LP Baker Brothers Life Sciences, LP McGladrey & Pullen, LLP 12/31/2013 GlobeOp Financial Services Goldman Sachs, JPMorgan Chase $18,808,927 Permit Capital Mortgage Fund, Grant Thornton, Permit Capital, LLC LP (Series M) LLP 12/31/2013 LL Funds (Subadvisor) BNY Mellon $4,387,683 Ashe Capital Partners, LLC Ashe Capital Partners, LP 12/31/2013 Northern Trust Northern Trust $7,951,166 10
Latest Audited Financials 12/31/14 Investment Advisor (Official Name) Product Name Auditors Available Administrator Custodian Market Value Treasury Bond Vanguard Long-Term Treasury The Vanguard Group, Inc. Admiral PWC 12/31/2013 Vanguard BNY Mellon $9,483,505 Global Bond Colchester Global Investors Limited Colchester Global Bond Fund Ernst & Young, LLP 12/31/2013 Deloitte & Touche LLP Northern Trust $11,997,059 Treasury Inflation Protected Sec Income, Research & Management Income, Research & Management IPS (Separately Managed Acct) NA NA NA Webster Bank $7,387,547 Emerging Markets Debt Mondrian Investment Group (U.S.), Inc. Mondrian Emerging Markets Debt Fund, LP Deloitte & Touche, LLP 12/31/2013 Deloitte & Touche LLP Northern Trust $12,168,777 Hedge Funds Canyon Capital Advisors, LLC Eminence Capital, LLC Forester Capital, LLP Canyon Value Realization Fund (Cayman), Ltd. Eminence Fund, Ltd. Forester Offshore, Ltd. Deloitte & Touche, LLP 12/31/2013 Ernst & Young, LLP 12/31/2013 Ernst & Young, LLP 6/30/2014 International Fund Services Limited (Ireland) State Street Bank & Trust Co. $3,512,063 Morgan Stanley Fund Services, Ltd JPMorgan Chase $2,524,841 International Fund Services (Various Fund Level) State Street Bank (Various Fund Level) $19,238,794 Hoplite Capital Management, LLC Hoplite Offshore Fund, Ltd. PWC 12/31/2013 MSFS Northern Trust $4,624,599 Lansdowne Partners, LP Tiger Consumer Management, LP Lansdowne Developed Markets Fund Limited Tiger Consumers Partners Offshore, Ltd. Ernst & Young, LLP 12/31/2013 Credit Suisse Morgan Stanley $8,885,212 Deloitte & Touche, LLP 12/31/2013 MSFS Morgan Stanley $4,171,208 11
Financials 12/31/14 Investment Advisor (Official Name) Product Name Auditors Available Administrator Custodian Market Value Real Assets Metropolitan Real Estate Equity Management, LLC Metropolitan Real Estate Partners (Int'l II, V, III), LP PWC 12/31/2013 None First Republic Bank Combined: $1,738,529 Shorenstein Realty Investors Shorenstein Realty Services, LP Nine, LP Deloitte & Touche, LLP 12/31/2013 None Bank of America $1,091,583 LBA Management Company Ernst & Young, IV, LLC LBA Realty Fund IV, LP LLP 12/31/2013 None Bank of America $1,195,499 Merit Energy Company, LLC Merit Energy Partners H, LP KPMG 12/31/2013 None Bank of America $2,576,007 Denham Commodity Partners Denham Capital Fund VI, LP PWC Boston 6/30/2014 None Citibank $846,875 GEM Realty Capital GEM Realty V, LP KPMG 12/31/2013 None Bank of America $531,251 Private Equity TIFF Partners Equity Partners (2008, 2011, III), LLC Warburg Pincus, LLC TIFF Private Equity Partners (2008, 2011, III) Warburg Pincus Energy, LP Ernst & Young, LLP 12/31/2013 State Street State Street Combined: $2,484,595 Ernst & Young, LLP NA None JPMorgan Chase $164,923 12
Council on Foundations Peer Investment Performance Survey All Periods Ending December 31, 2014 Median Annualized Rates of Return: All Community Foundations (Expressed as a Percentage, and Net of Expenses) 13
Community Foundation Survey Ending December 31st, 2014 Investment Return Summary as of December 31st, 2014 (Returns for Periods Longer Than 1 Year are Annualized) Asset Category Quarter to Date Year to Date Latest 1 Year Latest 3 Years Latest 5 Years Latest 7 Years All Participants 1.3% 4.4% 4.4% 10.9% 8.7% 4.5% 6.0% 5.4% 8.3% n = 130 n = 130 n = 130 n = 120 n = 117 n = 107 n = 90 n = 60 n =30 $ 500 Million and Over 1.0% 4.3% 4.3% 11.0% 8.7% 4.7% 6.1% 5.6% 8.8% n = 16 n = 16 n = 16 n = 16 n = 16 n = 16 n = 16 n = 14 n = 9 $ 250.0 Million to $ 499.9 Million 1.4% 4.8% 4.8% 11.6% 8.9% 4.6% 6.6% 5.8% 9.0% n = 11 n = 11 n = 11 n = 11 n = 11 n = 11 n = 11 n = 9 n = 5 $ 100.0 to $ 249.9 Million 0.8% 3.4% 3.4% 10.0% 8.0% 4.1% 5.7% 5.5% 8.3% n = 28 n = 28 n = 28 n = 28 n = 28 n = 27 n = 24 n = 15 n = 10 $ 50.0 to $ 99.9 Million 1.2% 4.4% 4.4% 11.3% 8.8% 4.9% 6.2% 5.3% 8.5% n = 29 n = 29 n = 29 n = 28 n = 28 n = 28 n = 24 n = 18 n = 6 $ 25.0 to $ 49.9 Million 1.5% 4.4% 4.4% 10.8% 8.5% 4.7% 5.9% 5.2% n = 23 n = 23 n = 23 n = 21 n = 20 n = 18 n = 12 n = 4 $ 5.0 to $ 24.9 Million 1.6% 4.5% 4.5% 10.9% 8.8% 4.9% 6.2% n = 20 n = 20 n = 20 n = 14 n = 12 n = 7 n = 3 $ 0 to $ 4.9 Million 1.5% 5.3% 5.3% 10.7% 8.3% n = 3 n = 3 n = 3 n = 2 n = 2 60% MSCI World/40% Barclays Aggregate 1.3% 5.4% 5.4% 10.3% 8.2% 4.3% 5.8% 4.5% 7.0% Market Performance as of December 31st, 2014 (Returns for Periods Longer Than 1 Year are Annualized) Benchmarks Quarter to Date Year to Date Latest 1 Year Latest 3 Years Latest 5 Years Latest 7 Years Latest 10 Latest 15 Latest 20 Years Years Years Wilshire 5000 (US Equities) 5.3% 12.7% 12.7% 20.3% 15.5% 7.5% 8.0% 4.7% 9.9% Morgan Stanley EAFE (Non-US Developed Mkts Equity) -3.6% -4.9% -4.9% 11.1% 5.3% -0.5% 4.4% 2.5% 5.0% Morgan Stanley EM (Non-US Emerging Mkts Equity) -4.5% -2.2% -2.2% 4.0% 1.8% -1.3% 8.4% 7.1% 5.8% Barclays Aggregate (US Investment Grade Bonds) 1.8% 6.0% 6.0% 2.7% 4.4% 4.8% 4.7% 5.7% 6.2% Merrill High Yield Mstr (US Below Inv. Grade Bonds) -1.1% 2.4% 2.4% 8.3% 8.9% 8.4% 7.5% 7.5% 8.0% Citigroup Non U.S. Bonds -2.9% -2.7% -2.7% -1.9% 0.8% 2.6% 2.6% 4.6% 5.0% HFRI Fund of Funds (Hedge Funds) 0.9% 3.4% 3.4% 5.7% 3.3% 0.4% 3.0% 3.8% 5.8% NCREIF Property Index (Private Real Estate) 3.0% 11.8% 11.8% 11.1% 12.1% 4.7% 8.4% 8.9% 9.6% Bloomberg Commodity Index (Commodities) -12.1% -17.0% -17.0% -9.4% -5.5% -7.6% -1.9% 2.7% 3.2% 90-Day T-Bills (Cash Equivalents) 0.0% 0.0% 0.0% 0.1% 0.1% 0.3% 1.5% 1.9% 2.7% Consumer Price Index -0.7% 0.7% 0.7% 1.2% 1.6% 1.5% 2.1% 2.2% 2.3% Source: Council on Foundations Investment Survey February, 2015 Latest 10 Years Latest 15 Years Latest 20 Years 14
Community Foundation Survey Ending December 31st, 2014 Asset Allocation Summary All Participants Allocation 12/31/14 12/31/13 12/31/12 12/31/11 U.S. Large Cap Equity 26.3% 26.8% 25.7% 25.2% U.S. Mid Cap Equity 3.4% 3.0% 3.1% 3.3% U.S. Small Cap Equity 5.3% 5.1% 4.5% 4.4% Total US Equity 35.1% 34.9% 33.2% 33.0% Non-US Large/Mid Cap Equity 15.4% 14.9% 14.7% 12.6% Non-US Small Cap Equity 0.7% 0.7% 0.5% 0.8% Emerging Markets Equity 4.8% 5.1% 5.2% 4.0% Total Non-US Equity 20.9% 20.7% 20.4% 17.4% Total Equities 56.0% 55.6% 53.6% 50.3% Domestic Fixed Income 12.5% 13.2% 14.3% 17.3% High Yield Fixed Income 1.7% 1.6% 1.8% 1.3% International Fixed Income 3.4% 2.9% 2.6% 3.0% Total Fixed 17.5% 17.6% 18.7% 21.6% Hedge Funds 11.4% 12.1% 12.0% 12.1% Private Equity 3.7% 3.5% 3.7% 4.3% Real Estate 2.1% 2.2% 1.8% 1.9% Real Assets 3.6% 3.3% 3.7% 3.4% Other 3.2% 3.1% 3.3% 2.7% Total Alternatives 24.0% 24.2% 24.5% 24.3% Cash/Equivalents 2.5% 2.6% 3.1% 3.8% Total Cash/Equivalents 2.5% 2.6% 3.1% 3.8% Total 100.0% 100.0% 100.0% 100.0% Source: Council on Foundations Investment Survey February, 2015 15
Median Return Performance by Strategy 4th Quarter 2014 14.00% 12.00% 10.00% 8.00% Returns % 6.00% 4.00% 2.00% 0.00% QTD YTD 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year 20 Year High Equity 65% (n=39) 1.60% 4.42% 4.42% 12.33% 9.46% 5.51% 6.67% 5.55% 8.74% High Fixed 35% (n=1) 2.27% 5.43% 5.43% 9.99% 8.65% 4.82% 5.79% 4.98% 8.09% High Alternatives 20% (n=36) 0.54% 3.49% 3.49% 10.47% 8.48% 4.44% 6.01% 5.24% 8.30% No Alternatives (n=7) 2.74% 7.00% 7.00% 12.31% 10.24% 5.96% 6.90% 4.98% 5.96% The Corporation 2.40% 8.60% 8.60% 13.80% Time 10.00% Periods5.60% 7.20% 7.10% 8.90% 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 endowment-like 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 will now include a monthly financial report, which will be delivered electronically on/about the 20 th of each month. This new report will be in addition to both the currently issued monthly investment management results and the quarterly reporting on both financial and investment management activities. If you have any questions or would like to discuss any aspect of your organization fund, please feel free to contact Jennifer Glover, Investment Services Officer, at 203-777-7063 or jglover@cfgnh.org; or A.F. Drew Alden, Senior Vice President for Investments, Chief Financial Officer, and Chief Compliance Officer at 203-777-7061 or aalden@cfgnh.org. We appreciate the opportunity to assist you and your organization with the stewardship of its charitable assets. 17
DonorCentral https://www.edonorcentral.com/login.asp For issues involving DonorCentral log-on, please contact Deb Wright dwright@cfgnh.org 203.777.7073 24/7 Fund Information Fund Summary Quarterly Investment Performance Quarterly Fund Statements 18
Upcoming Events & Workshops Events Technical Assistance Workshops Convening: The President's Executive Action on Immigration March 9 http://www.cfgnh.org/about/newsevents/viewarti cle/tabid/96/articleid/240/convening-the- Presidents-Executive-Action-on-Immigration.aspx The Great Give 2015 May 5-6 http://givegreater.guidestar.org/giving.aspx Community Breakfast and Tours May 20 & June 24 Grant Writing 201 March 4 Marketing Plans Mid-March Social Media Marketing Mid-March The Art of the Ask April 22 For more information contact Jackie Downing jdowning@cfgnh.org or 203.777.7072 19
A.F. Drew Alden Senior Vice President for Investments, Chief Financial Officer, and Chief Compliance Officer P: 203.777.7061 F: 203.776.3872 Email: aalden@cfgnh.org