COVID-19 Impact on Fund Stewardship & Market Conditions
GTCF is prepared for times such as this.
As COVID-19 and the necessary public health measures to address it create market volatility, Greater Tacoma Community Foundation offers these insights into its stewardship of funds:
1. GTCF’s endowment funds are intended to last forever. We knowingly accept the ups and downs in the market.
2. The members of our investment committee and the money managers responsible for stewarding the investment of our assets have experienced difficult environments before.
The primary endowment manager, Vanguard, is closely monitoring global investment markets and remains focused on three broad concepts:
- Monitor market conditions for excessively pessimistic mispricing
- Monitor investment managers to be sure they are responding appropriately to volatility and the higher likelihood of inefficient market pricing
- Seek opportunities to add capital to previously closed managers as openings can be driven by an improved opportunity set and/or decisions by their current investors to withdrawal capital.
In managing the various investment pools, GTCF pursues the following approach:
- Establish a strategic asset allocation which is expected to achieve the long–term return objective of each pool.
- Diversify the portfolio by asset class and strategy as this increases the likelihood of achieving return objectives while managing risk under different economic/market conditions.
- Maintain the strategic asset allocation within established ranges through rigorous monitoring and regular rebalancing. This discipline forces the sale of assets when they are relatively expensive and the purchase of assets when they are relatively cheap.
- Stick with chosen fund managers as long as they remain ethical, have not deviated from their strategy or changed key staff.
- Avoid the temptation to market time or change strategy based on current conditions or near–term outlook.
Greater Tacoma Community Foundation’s investment model is based on modern portfolio theory, employing strategically diversified asset allocation. Our endowed funds are pooled to provide investment management economies of scale and access to investment vehicles that are unavailable to smaller individual funds.
GTCF’s endowment portfolio employs a diversified growth strategy with the goal of generating a long-term rate of return sufficient to offset inflation, administrative, and management fees, plus regular grantmaking distributions. Grantmaking distributions are currently calculated at 4.3% of the sixteen-quarter rolling average market value for permanently endowed funds.
Overseeing our investments is the work of our Investment Committee, which is comprised of experienced professionals with extensive backgrounds in investment and finance. The Committee adheres to disciplined decision-making processes, guided by our Investment Policy Statement.
GTCF Investment Pools
GTCF offers Fund Advisors four investment pools: Long-Term, Short-Term, Socially Responsible Investment (SRI), and Low-Risk.
Fund Advisors can select the Investment Pool(s) that best meet their philanthropic goals. They can choose a dollar amount or a percentage of their funds, and they can distribute funds across one or more of the Investment Pools.
- Q1 2021 Investment Pool Comparison Report
- DETAILED INFORMATION
- Q4 2020 Investment Pool Comparison Report
- DETAILED INFORMATION
Q3 2020 Investment Update
Q2 2020 Investment Update
Q1 2020 Investment Update
Q4 2019 Investment Update
- Endowment Pool
- Short Term Pool
- Socially Responsible Investment Pool
- GTCF Vanguard & SRI Investment Performance Presentation
Q3 2019 Investment Update
Q2 2019 Investment Update
Q1 2019 Investment Update
Greater Tacoma Community Foundation employs Vanguard Institutional Advisory Services as its investment consultant.
Fund Evaluation Group manages GTCF’s Socially Responsible Investment (SRI) Fund Pool
Gary Brooks (Chair), CFP®, CSRIC™
President, Brooks, Hughes & Jones
Geoffrey Curran, CPA/ABV, CFA®, CFP®
Andy Fagan, CFA®
Financial Counselor, Zeiders Enterprises
Brian L. Green
Attorney and Shareholder, McGavick Graves
Attorney, Fiduciary Counseling, Inc.
Kelly Ryan, CIMA®
Vice President, Senior Portfolio Manager, US Bank
Doug Van Allen, CFP®
Jefferson County Community Foundation
Investment Roles and Responsibilities
The following are the governance roles and responsibilities of our board of directors, investment committee, and investment consultant:
GTCF Board of Directors
- Fiduciary duty to manage the assets as a prudent investor would
- Maximize returns with an acceptable level of risk
- Protect the principal in perpetuity
GTCF Investment Committee
- Adopt the provisions of this Investment Policy
- Hire and fire investment managers, custodians, and investment consultants
- Monitor quarterly performance with the Investment Consultant
- Provide research, education and investment manager information to the Committee
- Provide proactive recommendations
- Monitor the activities of each investment manager
- Provide the Committee with quarterly performance reports
- Review this Investment Policy Statement with the Committee
Our Forms 990 and 990T, as well as, our gift acceptance policies, are available upon request.
Endowment Spending Policy (December 16, 2020)
Individually Managed Funds (IMF) (June 2018)
Whistleblower Policy (updated 2017)
Endowment Investment Policy (August 23, 2017)
Short-Term Investment Policy (June 22, 2016)
Low-Risk Investment Policy (June 22, 2016)
Annuity Investment Policy (June 22, 2016)
Socially Responsible Investment Policy (April 27, 2016)