In keeping with the charitable purposes of the Foundation, our objective is to conservatively manage operating expenses and to provide a high quality service to all donors and charitable organizations. The FCCF covers its operating costs through administrative fees charged to each endowed fund (1% or less of the market value of endowed funds annually and 2.5% non-endowed funds), donations from private individuals, as well as grants from businesses and government entities.
Special Thanks to:
Investment Policies
- Objectives
We have a long-term objective of an 8% nominal rate of return after investment fees. Though there may be short-term deviations from this objective, we will evaluate achievement and other performance expectations.
- Asset Allocation
To better control the diverse investment styles of our advisors and the variability of the market, the FCCF uses a diverse investment structure. Because financial and inflation rates are cyclical, our policy exists to minimize the impact of market volatility through diversified assets, class, and style selection.
Our Investment Policy contains the specifics, is reviewed annually, and revised as necessary. Our investment committee expects a mix within the following model ranges:
- Equity: 55-70%
- Fixed: 30-45%
- Alternative: 0-10%
- Rebalancing
Using the following guidelines, our investment committee conducts quarterly reviews of the actual asset mix against the model to determine if rebalancing is necessary.
Changes in asset, class and style will be made if the quarterly weighting is outside the established range. In the case of major movements in the market that results in variations in the weighting, the committee may recommend rebalancing at any meeting of the board of directors.
- Diversification
No more than 5% of any fund shall be invested in bonds (using a market basis) in any single corporate debt security other than a U.S. government or government agency obligation.
No more than 10% of equities (on a market basis) shall be invested in a single equity issue.
- Investment Management
Investment advisors will be appointed, maintained, and removed on the quality of service. They are given discretion to manage funds entrusted in accordance with the style for which they are employed provided they comply with the restrictions and limitations that may be determined from time to time.
- Evaluation of Investment Advisors
The investment committee shall meet with investment advisors at least annually to discuss performance results, economic outlook, organizational changes and other pertinent matters.
The advisors are expected to consistently achieve a total rate of return equal to or above the index benchmarks.
Investment advisors maintain the portfolio for the FCCF characterized by their respective traditional management styles but in keep with the with model and range allocation detailed in the Investment Policy. If a change in style is contemplated, advisors are required to give advance written notice to the investment committee.
- Investment Advisors Communication and Reporting
Investment advisors are responsible for open communication with the investment committee in all significant matters pertaining to investment policies and management of assets. These include but are not limited to:
- Major changes in investment policies and advisor’s investment outlook, investment strategy, and portfolio structure;
- Any significant changes in the advisor’s organization including significant changes in ownership, organizational structure, financial condition, or senior personnel staffing;
- Submitting quarterly investment reports to the FCCF within 30 days of the end of each quarter.
- Removal of Investment Advisor
The FCCF reserves the right to remove and replace any investment advisor or agent for breach of fiduciary duty under West Virginia law. Additionally, any investment advisor may be replaced for failure to produce a reasonable return of investment over a reasonable period of time as determined by the board. Such recommendations are put forth by the investment committee.
- Addition of New Investment Advisor
Just as in investment strategies, diversification in investment advisors is highly desirable. Circumstances exist where a donor may recommend an advisor or an advisor may be able to introduce a new donor to the Foundation.
New investment advisors may be appointed by board vote, using the following considerations:
- Has a local presence and known to the community to offer professional, ethical, and well-regarded investment services;
- Able to meet all reporting and communication criteria deemed necessary by the investment committee;
- Applies competitive investment fees in relation to those currently charged to the FCCF;
- Manages a minimum amount of $100,000 of the FCCF assets under management either from multiple new donors or a combination of new and existing donors in order to allow for a minimum level of diversification of assets under management by the new advisor.;
- Support exists in the FCCF’s internal accounting system and expansion can be done.