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Financials

Connecticut Community Foundation is the steward of permanent endowment funds that have been entrusted to us since 1923. Our goal is to invest strategically to meet the current needs of our community while preserving the endowment's value so we are able to continue to serve residents in the future.

As a public charity, the Foundation adheres to the highest financial disclosure standards. For more information, please refer to the documents below:

Our Investment Options

Connecticut Community Foundation's investment policies are overseen by an investment committee comprising active and retired investment managers, as well as other individuals knowledgeable in the investment field. This committee, with assistance from an independent consulting firm, recommends the allocation strategies, investments to the Board of Trustees and monitors the performance of the investments on a quarterly basis against designated benchmarks.

Donors to the Foundation may select from the following investment options for their funds:

  • Balanced endowment fund - This investment option is available for both permanent and nonpermanent funds. This pool offers a broadly diversified portfolio of publicly traded mutual funds, providing full disclosure and liquidity. The focus is on index funds which mirror the market at low cost. Further information on the balanced endowment fund's individual mutual funds and their returns is available from the Foundation. Contact 203.753.1315.
  • Money market type vehicle - This investment option is available only for nonpermanent funds. This pool offers a money market type vehicle for those donors who wish to expend their funds within a shorter time frame, usually fewer than 2-3 years.  

Investment Performance

Investment return, net of investment manager fees, for the Foundation's Balanced Endowment Fund and comparable indices for the period ending 12/31/16 are:

 

Year to Date 

 Last 12 Months 

 Last 3 Years 

Last 5 Years 

Balanced Fund     

8.04%  

  8.04%   

   3.56%   

  7.96%  

Benchmark 

    7.56%  

7.56%

3.60%

7.58%

Spending policy

The Foundation invests its endowment assets for total return (interest, dividends, capital appreciation/depreciation). Each individual fund at the Foundation receives its pro rata share of the total return. 

Annually, the Board of Trustees establishes a payout rate. The Foundation's payout rate for 2017 is 5.20 percent. A 12-quarter moving average (ending one year prior to the beginning of each current year) of ending endowment market values is used to determine spending for grants and scholarships.

For permanent endowment funds, a portion of the payout is assessed for action grants, an administrative fee and the Foundation's investment management fee. This assessment is calculated quarterly based on the prior quarter’s ending market value. For non-permanent donor advised funds, action grants, the administrative fee and the Foundation's investment fee is calculated quarterly based on the highest market value in the prior quarter.

The Board of Trustees has historically approved a prudent rate of spending, taking into consideration historic rates of return and inflation.  Studies of endowment funds consistently show that payout rates significantly greater than 5 percent have the potential to erode the value of the endowment after inflation.  

For more information, please contact Barbara Ryer, director of finance and administration, at 203.753.1315 x 115.

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