How We Invest

Our Investment Strategy
The investment goal of the Foundation is to increase charitable assets while preserving capital. Our intention is to offer a diversified portfolio that can better manage risk for the long term while producing superior returns. We take very seriously our fiduciary responsibility of stewarding our donors’ assets.

TCF’s Finance Department is guided by seasoned, dedicated investment professionals with experience in nonprofit endowments who serve as our Investment Committee. The committee members are volunteers and receive no financial remuneration from the Foundation or any investment companies in which Foundation assets are invested.

An independent investment consultant, Colonial Consulting, LLC, helps inform the decisions of the Investment Committee and Finance Department. Colonial Consulting concentrates on nonprofit endowments, including 26 of the nation’s leading community foundations. Through Colonial, the Foundation has access to world-class investment managers and alternative investment strategies ordinarily available only to large institutional investors, and we pass this benefit along to our fundholders. Investments are monitored regularly by the Foundation’s investment committee, consultant and staff.

From this well-crafted investment strategy results the Foundation’s investment portfolios that are actively managed and designed to meet a range of giving goals and time horizons. This personalized investment oversight is one of the hallmarks of the TCF fundholder experience.

Investment Options
Under our present investment strategy, the Foundation has one endowed portfolio and two portfolios for nonendowed assets. Because we can predict the cash distributions that will be required of TCF endowed funds (5%), the assets in the Endowed portfolio can be invested in a greater range of asset classes, some of which are less liquid than others, but help to balance risk and return more effectively.

Fundholders of nonendowed assets may may choose between an Income-Oriented portfolio (30% equities / 70% fixed) or a Growth-Oriented portfolio (70% equities / 30% fixed). The Growth-Oriented portfolio closely mirrors the Endowed portfolio, but does not have any exposure to alternative investments since we do not know the cash distribution needs of nonendowed funds and therefore need to preserve liquidity. Nonendowed fundholders have the opportunity to change their investment option once a year.

For fundholders who are risk-averse, the Foundation offers Pass-Through funds which are not exposed to the stock and bond market. Any income earned is absorbed by the Foundation in lieu of administrative fees.

View a copy of the Foundation’s latest investment performance report.