Gift Fees in Practice: A Candid Conversation on What Really Works-COCC Foundation Investment Policy Statement

COCC Foundation Investment Policy Statement

Pdf Summary

The COCC Foundation Investment Policy Statement, revised in 2024, sets the framework for managing the Foundation’s investable assets under prudent fiduciary standards. Its main purposes are to preserve the real purchasing power of principal and provide a stable, perpetual source of support. The policy emphasizes diversification, long-term investing, risk management, and compliance with applicable laws.<br /><br />The Foundation targets annual total returns, net of fees, that at least cover the spending rate plus inflation over a rolling five-year period, while also comparing favorably to relevant market indices and similar funds. The investment approach is based on a disciplined strategic asset allocation, managed on a total-return basis.<br /><br />The spending policy authorizes annual distributions of 5% of a three-year average of beginning endowment values: 4% for scholarships and programs and 1% for operations. Rebalancing is reviewed quarterly to keep allocations within target ranges and control risk.<br /><br />The policy allows investment in equities, fixed income, cash equivalents, and alternative assets such as private capital, real estate, natural resources, marketable alternatives, and certain derivatives. Alternatives are generally limited to 30% of total market value unless approved by the Committee. Restrictions are placed on issuer concentration, industry concentration, and security size to ensure diversification.<br /><br />Oversight is assigned to the Board of Trustees and a Finance & Audit Committee, with the Executive Director maintaining records and reporting quarterly. Investment managers must provide quarterly performance and transaction reports and meet with the Committee annually. The policy permits waivers in special circumstances, subject to review and Board reporting.

Keywords

investment policy statement

endowment management

fiduciary standards

asset allocation

portfolio diversification

spending policy

annual distributions

risk management

alternative assets

board oversight