Investment Philosophy

Community Foundation Investment Portfolio

Investment Philosophy

As a Community Foundation, Olympic View Community Foundation holds charitable endowments for the community in perpetuity. As stewards of the community’s funds, we have three main investment priorities:

  • Protection of capital
  • Maximization of return commensurate with safety
  • Ensure capital growth

To meet investment goals, the Foundation follows a total return strategy, with the intent of maximizing the long term return of the entire portfolio both from market-value increases (realized and unrealized gains) and from current-yield (interest and dividends). Following the national norm for most community foundations, assets are allocated among a number of stocks, bonds and cash managers to produce the highest return and lowest risk. Investment decisions optimize the total rate of return and limit year-to-year risk of income and market fluctuations. The optimal portfolio allocation is one that carefully equates expected rate of return with expected risk of all investment categories used in the portfolio.

Protecting Captial & Maximizing Returns

To protect capital and maximize return, endowment funds are commingled in an investment pool which provides the wide breath of investment managers listed above. The investment pool allows each fund no matter the size to receive the maximum benefit of investing in the Investment Committee’s approved asset allocations. Each fund is unitized and receives the proportional share of income, dividends and gain as well as the proportional share of the investment expense.

This philosophy is implemented by OVCF holding some funds in local banks either in checking accounts, savings accounts or certificates of deposit. Some funds are placed with the Greater Tacoma Community Foundation (GTCF) in an endowment fund. We hold the same investment philosophy as the GTCF thereby making our relationship mutually enjoyable. For funds placed at the GTCF please see their statement of investment philosophy with its placement discussion at www.gtcf.org