2012 Annual Report - Community Foundation for Greater Buffalo

Our Approach toCharitable InvestmentsThe Community Foundation’s Investment Committee has oversight for more than $250 million incharitable assets. Members of the committee are specifically recruited because of their knowledgeof investments. They receive advice from our independent investment consultant specializing in largeendowment funds—Colonial Consulting, Inc. —throughout the year. Together they work to allocatethe charitable assets left to the Community Foundation’s care into a highly diversified mix of globalequities, fixed income and alternative investment strategies that include more than 27 differentinvestment management organizations pursuing strategies within 13 different asset classes.Within each asset class, the Community Foundation seeks to utilize world-class investmentmanagers who are able to outperform appropriate target market benchmarks over long periods.Investment Committee Members··Luke Jacobs, Esq., Chair··Charles E. Balbach··Joseph J. Castiglia··Laurence W. Franz, Ph.D.··Richard O. Hopkins··William Joyce··Gerard Mazurkiewicz, C.P.A.··Michael E. Munschauer, C.F.P.··William J. Williamson, Jr., C.F.P.** DeceasedThe Community Foundation’s Investment Committee has oversight for more than$250 million in charitable assets.Luke Jacobs, Esq.; Michael E. Munschauer; Laurence W. Franz, Ph.D.; William Joyce;Gerard Mazurkiewicz, C.P.A.; Richard O. Hopkins; Charles E. Balbach.Financial HighlightsInvestment OverviewOver the long term, the investments of the Community Foundation continue to consistentlyoutperform our benchmarks, adding 8.4% per year over the last ten years. This growth ranks theCommunity Foundation’s performance in the top 25% of foundations and endowments nationwideand provides significant value to charitable assets at the Community Foundation.The strong long-term investment results are the product of the Foundation’s decision to maintain astrategy that is driven by long-term objectives, while utilizing the size of its asset pool and a thoroughdue diligence process to access exceptionally capable investment management firms.As of December 31, 201214.0%12.7%12.0%10.7%10.0%8.0%6.0%8.4%7.9%7.1%6.6%5.9%4.0%3.5%3.6%2.0%1.1%0.0%Latest 1 Year Latest 3 Years Latest 5 Years Latest 7 Years Latest 10 YearsCommunity Foundation Returns Presented Net of Investment Management FeesCommunity FoundationComposite Benchmark*In 2012, the Community Foundation received a clean audit. Audited financial statements are available at cfgb.org orby request. Contact Betsy Constantine at (716) 852-2857, ext. 217.*Weighted average of sector benchmarks36 | Community Foundation for Greater Buffalo Annual Report 2012 | 37