Investments at NCCF

Prudent investment stewardship is essential to our mission of inspiring philanthropy and building permanent charitable assets to benefit communities.

We utilize the highest professional standards, achieved through the guidance of our Finance Committee, expert recommendations of our investment advisor, and the acumen of our investment managers.

Investment Policy and Objectives

The perpetual nature of philanthropy forms the basis for the exceptionally long-term horizon of the Foundation’s investment portfolio. Philanthropic investing has a longer-term horizon than personal investing, retirement investing or intergenerational investing. Our Investment Policy Statement outlines our full investment philosophy and objectives.

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.

Portfolio

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:

ASSET TYPERATE
Equity60%
Fixed Income20%
Real Assets10%
Alternative Investments10%

Investment Portfolio Oversight

The NCCF Finance Committee is comprised of experienced investment and business professionals drawn from our Board of Directors and the community. The committee oversees the management of NCCF’s investment portfolio. With support and guidance from our Finance team and investment consultant Graystone Consulting, the committee formulates investment policy, determines asset allocation, and monitors and evaluates investment performance.

Charitable Investment Partners Program (ChIPP)

This custom investment option allows you to recommend your own trusted investment advisor to manage the charitable assets making up your fund.
Learn more about Charitable Investment Partners Program (ChIPP)

Related news

All NCCF news
Blog, Commentary

2024 first quarter | Market commentary and investment performance (January – March)

May 2, 2024

What we saw: Stocks continued a strong positive trajectory in the first quarter fueled by (perhaps unrealistic) optimism for future interest rate cuts from…

Blog, Commentary

2023 fourth quarter | Market commentary and investment performance (October – December)

February 9, 2024

What we saw: 2023 stood in stark contrast to 2022 when markets wrestled with the prospects of prolonged inflation, an aggressive rate-raising campaign…

Contact us

Wilson Simmons

Chief Financial & Administrative Officer
Email
919-256-6916