The long-term stewardship of donations entrusted to WCCF by our many donors is one of our organization’s most important responsibilities. Our investment program pools the assets of all our permanent charitable funds for investment purposes. Each individual fund benefits from the strength of a large, well-diversified portfolio. This results in professional, high-quality investment management at reasonable fees and costs.
WCCF has an Investment Committee comprised of board members and community leaders with investment expertise that develops the investment and spending policies and establishes the target strategic asset allocation, performance goals and benchmarks. The Investment Committee hires and monitors an investment consultant, Mason Investment Advisors. Mason has a strong performance track record and special expertise in working with community foundation clients.
The long-term investment portfolio is well-diversified and includes 16 different asset classes and is regularly re-balanced to stay in compliance with the strategic asset allocation. Our portfolio is invested approximately 78% in growth vehicles and 22% in income vehicles.
Currently our investment policy prohibits more risky alternative investments. The portfolio includes both actively managed and passive funds. The target annualized 10-year return is 6-8% net of investment management and internal fund fees. This return rate allows us to fulfill our goal of paying out 4.5% each year, covering our administrative fee, and reinvesting 2% to 3% each year so that the fund balance grows to keep pace with inflation.
Our assets are invested in a long-term grown portfolio with the following composite returns. These are net of all investment fees.
Annualized returns (performance as of 12/31/21)
1-year annualized: 20.03%
3-year annualized: 17.42%
5-year annualized: 11.44%
Please note that WCCF has been in its current portfolio since November 2013. Past performance is no guarantee of future performance.
In addition to its long-term invested assets, the Western Colorado Community Foundation holds cash reserves and shorter duration project funds and funds for pay-out of grants and scholarships. Millions of dollars with liquidity requirements are held in local banks and financial institutions in western Colorado.