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Investment Strategy

We offer two options for the investment of funds by our clients. These options, described below, are all consistent with our Investment Policy, a copy of which is available upon request. The two investment options provide choices based on the pace at which funds are to be spent so financial returns are maximized according to funds available for investment.

Short Term Pool

The primary investment objective of this Pool is stability of principal. This Pool is appropriate for non-endowed funds or other situations where funds can be withdrawn with little or no advance notice, and/or in situations where only minimal fluctuations to principal can be tolerated. This Pool should be considered for money with a time horizon of under three years. For performance evaluation purposes, the Committee will track one, two, and three year period trailing returns as compared to money market funds. To manage credit risk, investment vehicles used for the Short Term Pool by the RCF Finance Committee will be limited to the following:

  • Money Market Mutual Funds and "ultrashort bond funds"
  • Government issues (known as "Treasuries")
  • Government-Sponsored Enterprise Securities (known as "Agencies"), such as Farm Credit System, Federal Home Loan Bank System, Federal National Mortgage Association, and Student Loan Marketing Association, some of which are not explicitly backed by the full faith and credit of the U.S. Government.
  • FDIC insured Certificates of Deposit, to be bought in increments up to the maximum insured limit per bank to assure insurance coverage and only at banks rated 165 ("Excellent") or higher, as rated by the Bank Financial Quarterly, issued by IDC Financial Publishing, Inc.

Medium Term Pool

The primary investment objective of this Pool is to serve as a medium term operating fund with moderate year to year volatility. This Pool may experience some reduction of purchasing power over time due to inflation. This Pool is appropriate for non-endowed and endowed funds that have a time horizon that is between three and five years. This Pool will most likely experience moderate fluctuation to principal.

 

The Foundation recognizes that the pooling of invested assets reduces administrative and investment-related expenses and thereby allows more money to go toward the charitable good. For this reason, the Foundation has established certain limitations and guidelines for situations when a donor wishes to recommend a specific investment manager to hold his or her fund. Contact the Richmond Community Foundation for further information at (510) 234-1200.

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Address:
1014 Florida Ave, Ste 200
Richmond, CA 94804

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Telephone:
(510) 234-1200

Fax:
(510) 234-3399