Learn How our Prudent Investment Stewardship Builds Permanent Charitable Assets in NC

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 nature of NCCF’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.

Investment Policy Statement

The primary investment objective is to preserve and protect historical endowment contributions indefinitely, while providing an average return that covers an annual grant or scholarship distribution, fund operating costs and inflation.

Portfolio

Our fundholders benefit from a collective investment approach, and individual fundholders have access to our investment managers. Working with NCCF, fundholders may achieve broader diversification through alternative asset styles and liquidity options not usually available to individual investors.

Asset allocation strategies and ranges

The asset allocation should provide an expected total return that balances the investment objectives of the foundation, maintains a long-term investment horizon, and avoids undue risk concentrations in any single asset class or category. This reduces risk at the overall portfolio level.

Fundholders may select from a menu of investment strategies. NCCF uses specific benchmarks for each strategy to ensure managers are meeting the goals of each pool. For more information about our pool objectives, asset allocation and benchmarks, review our Investment Policy Statement.

Long-term diversified pool

Objective: To grow capital at a total return rate greater than inflation plus spending and costs through a highly diversified portfolio designed to reduce volatility. This pool is broadly diversified with exposure to global equity, global fixed income, alternative investments, hedge funds, private debt, and private equity.

Asset Category	Minimum	Maximum
Global Equity	32%	75%
Private Equity	0%	10%
Global Fixed Income	12%	30%
Private Fixed Income	0%	5%
Liquid Real Assets	0%	10%
Private Real Assets	0%	10%
Liquid Diversifying Strategies	0%	10%
Illiquid Diversifying Strategies	0%	10%
Cash & Equivalents	0%	10%

This pool is designed for fundholders who have a moderate risk tolerance and is benchmarked by our Broad and Diversified benchmarks:

Benchmark – Broad: This benchmark represents a general approach to investment. 70% MSCI All Country World Equity Index, 30% Bloomberg Barclays Aggregate Bond Index. 
Benchmark – Diversified: This benchmark represents a diversified approach to investment with material allocations to a combination of private equity, private debt, and alternative investments. 24% MSCI ACWI ex US, 20% S&P 500, 10% Russell 2500, 18% Bloomberg Barclays Aggregate Bond Index, 10% HFRI FOF index, 6% MSCI Infrastructure, 6% Cambridge Private Equity, 4% Barclay CTA, 2% Cambridge Private Debt.

Long-term growth pool

Objective: To grow capital at a total return rate greater than inflation plus spending and costs through a portfolio emphasizing publicly traded global equity without exposure to alternative asset vehicles and classes such as hedge funds, private debt, and private equity.

Asset Category	Minimum	Maximum
Global Equity	32%	85%
Global Fixed Income	12%	30%
Real Assets	0%	20%
Diversifying Strategies	0%	20%
Cash & equivalents	0%	10%

This pool is designed for fundholders who have a higher risk tolerance and is benchmarked by our Broad and Blended benchmarks:

Benchmark – Broad: This benchmark represents a general approach to investment. 70% MSCI All Country World Equity Index, 30% Bloomberg Barclays Aggregate Bond Index. 
Benchmark – Blended: This benchmark represents a diversified approach to investment in public markets. 35% R1000, 15% Russell Midcap, 5% R2000, 10% MSCI EAFE Net, 30% Barclays Govt/Credit Bond, 5% FTSE Treasury Bill 3 Month.

Other investment pools

NCCF offers two other investing options. These strategies also follow our investment objective, taking a sustainable investing approach that incorporates socially responsible factors or filters into rigorous investment analysis and portfolio construction.

These pools are designed for fundholders who want to prioritize a mission-focused approach to investment. Please contact your Development Officer or Donor Engagement Officer for more information about these investment options.

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.