The primary investment objective is to preserve and protect historical endowment contributions over an indefinite time frame, while providing an average return that covers a 5% annual distribution, average 1% NCCF support fee and inflation.
Prudent investment stewardship is essential to our mission of building long-term charitable assets for the benefit of our communities. Our donors benefit from a collective investment approach that affords individual fundholders access to investment managers and products. With NCCF, donors may achieve broader diversification through alternative asset styles and liquidity options not usually available to individual investors.
Asset allocation and strategy
Achievement of our investment objective requires a moderate level of risk, a long-term investment horizon, and effective asset and liquidity diversification. Historically, equity investments have outperformed both fixed income (bonds) and cash (certificates of deposit and money market accounts).
A moderate asset allocation of 60% equity (stocks), 20% fixed income, 10% real assets and 10% alternative investments is appropriate for the long-term perspective of philanthropic investing and the investment objective to preserve fund principal and an appropriate return. All investment managers abide by the following asset allocation targets: