The NCCF portfolio is managed for the long-term through a moderate asset allocation target of 65% equity, 25% fixed-income and 10% cash and alternatives. These targets are further subdivided into asset styles, each with an allowable percentage range. Our asset managers are hired to manage their portions of the portfolio within the allowable asset style allocation ranges.

An endowment is intended to grow in perpetuity. To do so, investment history indicates that its portfolio must contain equity with its normal market fluctuations. Over the long-term, equity investments have out-performed both fixed-income and cash investments. For the endowment to make annual grants and cover inflation, the endowment must include equity to ensure that the fund doesn’t eventually become depleted.

The primary investment option for new endowments is our proprietary North Carolina Community Foundation (NCCF) Investment Fund. Established in the spring of 2007, the NCCF Investment Fund employs specialist managers by asset style (e.g. large cap value equity, international equity and fixed- income) rather than a single manager administering all asset styles.

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