As a donor, you can select the investment pool in which the funds you give us are invested. The Community Foundation for Mississippi offers six investment pools. Each pool is professionally managed with oversight provided by the Investment Committee and the Foundation’s Investment Consultant ACG (Atlanta Consulting Group).
Investment Policy
The Community Foundation for Mississippi’s Investment Committee has developed a framework of prudent fiduciary guidelines for the Board of Trustees and the Committee to follow to ensure proper administration and management of Fund assets. The overall, long-term investment goal of the endowed funds of the Foundation is to achieve an annualized total return (net of fees and expenses), through appreciation and income, greater than the rate of inflation (as measured by the broad, domestic Consumer Price Index) plus management fees and distribution needs thus protecting the assets against inflation. The Investment Policy is reviewed annually by the Investment Committee with recommendations and suggestions from the Foundation’s Investment Consultant, ACG. Click here to download our Investment Policy Statement.
Investment Options
The Community Foundation for Mississippi offers six options as investment vehicles for donor contributions. At the inception of the fund, the Board of Trustees shall select the investment option deemed by the Board to be in the best interest of the Foundation; provided however, that the Board will consider the donor’s preferences, and the Board will attempt to incorporate these preferences into investment selections pertaining to the fund, to the extent determined by the Board to be sound, reasonable and prudent. The Board will also consider recommendations from the donor for changes in investment options no more frequently than semi-annually.
The Money Market Fund is expected to provide a rate of return coincident with short-term interest rates for Treasury securities and government obligations while maintaining safety of principal.
The Balanced Pool is expected to provide a modest current income while allowing for principal growth. This objective is ideally suited for funds to be managed as a permanent endowment. This investment model will fluctuate in value, but generally is expected to fluctuate less than the Equity Pool.
The Equity Pool is expected to provide principal growth through investment in mutual funds which own U.S. and international common stocks. Since this option is expected to experience more fluctuation in value, this choice is better suited for donors who take a long-term view with respect to the principal of the fund. Nonetheless, its long-term prospects for return may be better than the Balanced Pool.
The Income Pool is expected to provide a stable rate of current income, consistent with long-term preservation of capital. This pool is subject to fluctuations in value; however, it is generally expected to fluctuate less than the Equity Pool or the Balanced Pool.
At the inception of the contract and no more frequently than semi-annually thereafter, Donors who select Option V may recommend an allocation of their funds among Options I, II, III, IV, and VI. The sum of the percentages allocated among Options I, III, and IV must equal 100%.
At the inception of the contract and no more frequently than semi-annually thereafter, Donors who select Option VI may recommend an allocation of their funds among the index funds (whether mutual funds or exchange-traded funds) listed below. Index funds are unmanaged or “passive” investments that track indexes. They generally have very low operating expenses, because, as unmanaged investments, they are not subject to an investment advisor fee. Donors who select Option VI understand and acknowledge that investments will not be managed by an investment advisor.
Vanguard Total Stock Market Exchange Traded Fund
This ETF is an exchange-traded share class of Vanguard Total Stock Market Index Fund, which is designed to track the performance of the MSCI U.S. Broad Market Index, which represents 99.5% or more of the total market capitalization of all of the U.S. common stocks regularly traded on the New York and American Stock Exchanges and the NASDAQ over-the- counter market