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
- Growth Fund
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.
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.
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).
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.
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.
Growth Fund
The fund seeks long-term capital appreciation with less emphasis on providing income or cash flow, focusing on long-term growth by using mainly equities with lesser allocations to fixed-income investments, alternatives (hedge funds), and real assets (e.q., infrastructure funds, MLPs, REITs). This fund has the highest target allocation to equities of the six CFT funds.
A Passion For Opportunity
A Passion For Education
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