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ABOUT CFT > FINANCIALS & INVESTMENTS > INVESTMENT STRATEGY

investment strategy

Long-term giving requires investment strategy.

Communities Foundation of Texas’ investment strategies are designed for different levels of risk tolerance and time horizons, so that each donor can meet his or her unique philanthropic objectives.

CFT offers a short-term fund and five investment funds consisting of a broadly diversified mix of active and passively managed assets:

  • Balanced
  • Growth
  • Income
  • Short-Term
  • Social Impact
  • Endowment

A donor with a donor-advised fund over $1 million may request an external manager, subject to CFT’s Investment Committee approval. As with any investment, past performance does not guarantee comparable future returns.

  • Endowment Fund
  • Balanced Fund
  • Income Fund
  • Short-Term Fund
  • Social Impact Fund
Fund Pie 01 Endowment

Endowment Fund

The fund has a horizon in perpetuity for providing long-term charitable support. The fund’s objective is for the corpus to grow over time to exceed the effects of grantmaking and inflation. The fund is invested in global equities, real assets, bonds, and alternative investment strategies such as hedge funds and other less liquid assets that should earn a premium over publicly traded assets. Each year the annual spending rate is determined by CFT’s trustees.

Fund Pie 02 Balanced

Balanced Fund

The fund seeks long-term capital appreciation while providing some income and/or cash flow. The fund is invested in global equities, bonds, alternative investments, such as hedge funds, and real assets. The fund has a higher allocation to fixed income and a lower allocation to equities in comparison to the Growth Fund.

Fund Pie 04 Income

Income Fund

The fund seeks to preserve capital and generate limited capital appreciation on a total return basis. Comprised of fixed income investments with managers that exhibit duration ranging from just over one year to just over seven years (which can change over time).

Fund Pie 05 Short Term

Short-Term Fund

The fund seeks to maintain the value of contributions for short-term grants and consists of cash, cash equivalents, and very short duration fixed income instruments with an orientation toward quality. Designed to have the highest liquidity of the six CFT funds, and typically used for pending grants and commitments.

Fund Pie 06 Social Impact

Social Impact Fund

The fund seeks long-term capital appreciation with some income or cash flow. The fund focuses on environmental, social, and governance investment opportunities and is invested in global equities and bonds.

Fund Pie 02 Balanced
Fund Pie 03 Growth
Fund Pie 04 Income
Fund Pie 05 Short Term
Fund Pie 06 Social Impact
Equity
Fixed Income
Alternative
Real Assets
Cash Income

Transforming Passion into Purpose

Mike Tankersley - A Hire With a Higher Purpose
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Karen and I believe the legal profession has an obligation to assure access to justice for lower-income individuals...That’s where CFT
stepped in, and helped us turn our philanthropic vision into
tangible results.
- Mike Tankersley, Donor-Advised fundholder
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A Passion For Opportunity

Meet Nathan McClintock, recent recipient of the Kristofer Robinson Scholarship Fund.
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I use my story and my platform to give individuals with disabilities hope and to help them find a deeper sense of purpose and value in learning how to advocate for themselves.
- Nathan McClintock, Kristofer Robinson Scholarship Fund Recipient, 2017–2021
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A Passion For Education

The Sethis’ family fund and scholarship fund are centered around providing educational opportunities for students.
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Between our family fund and our scholarship fund, we can positively impact a student’s entire career journey, and that is important to us.
- Parvesh Sethi, CFT Fundholder
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Are you ready to get started?

Contact us to learn how we can help you meet your unique philanthropic objectives.

CarolynNewham 2021 sq
Carolyn A. Newham, J.D.
General Counsel and Corporate Secretary

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