2 minute read
Investing for the Future
Investment performance for 2022 was ugly. Rises and falls in the market are common, but it isn’t easy to feel good when the markets are down. Luckily, The Community Foundation is built on a long-term growth model over time, and a short-term loss won’t have a lasting impact on its benefit to the community.
Leaning into Experts
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Knowledgeable community members serve on the Investment Committee of The Community Foundation. The committee, outlined in the Foundation’s bylaws, is responsible for monitoring the investment manager’s performance and recommending policies regarding the investment of the Foundation’s assets.
“As the Foundation grows, we continue to manage the portfolio for the long term, to maximize the support for the mission of the Foundation while maintaining the real (inflation-adjusted) value of the endowments. Members of the Investment Committee employ their knowledge and skills to seek higher returns while taking prudent risks, utilizing a portfolio of both traditional and alternative investments,” said Tom Heck, chair of the Investment Committee of The Community Foundation. The Foundation contracts with an investment advisory firm to support the management of the assets in the Foundation’s investment pool. Together the Investment Committee and the advisory firm work to make prudent choices that grow The Community Foundation’s assets over time.
Introducing Impact Investing
The Community Foundation has been exploring how to do more with our assets. In 2022, the Foundation established a Local Impact Investment Subcommittee of the Investment Committee. This group evaluates opportunities to invest in local companies, organizations, or funds to generate measurable community benefits alongside financial returns.
Throughout 2022, the subcommittee worked to finalize an impact investment policy, program guidelines, and implementation tools, which were reviewed and approved by The Community Foundation Board.
“The Community Foundation has a history of using charitable assets to benefit Muncie and Delaware County. Learning about impact investing has us feeling like now is the time to do more,” said Carol Seals, past board chair and current member of the Investment Committee and Local Impact Investment Subcommittee.
