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Professional Investment Management
Professional Investment Management
All funds at the Oklahoma City Community Foundation benefit from professional investment management that is provided in a simple, efficient and effective way.
The Oklahoma City Community Foundation currently manages more than $550 million in endowment assets for the benefit of the community. Because endowment funds are intended to exist in perpetuity, the investment and distribution policies that govern them are designed for that special purpose. The Investment Committee hires professional investment managers and expects results that meet or exceed those of the broad financial markets.
Investment Structure and Performance describes the process which the Oklahoma City Community Foundation uses and the results which it has achieved for its funds over the past five years. All of the endowments benefit from the advantage of being part of a large investment pool. Balancing the use of active managers and index funds, we have been able to produce annualized returns over 10 years that exceed the markets but with an extremely low investment fee cost. For FY2008, the cost of investments at the Oklahoma City Community Foundation was 37 basis points, compared to more than 100 basis points for the average mutual fund or active equity fund manager. For more information on our investment performance and management, please contact Carla Pickrell at 405.606.2901 or Nancy Anthony at 405.606.2900.
Investment Structure and Performance
The investment policy of the Oklahoma City Community Foundation calls for a portfolio of stocks and fixed- income securities that are highly diversified. Capital preservation, protection against inflation and long term growth are the fundamental objectives of our investment strategy. Asset allocation and investment discipline are critical elements for good long-term investment performance.
Responsibility for investment policy and manager selection rests with a seven-member investment committee composed of four Trustees or former Trustees and three non-Trustee Oklahoma City community leaders with strong investment expertise. The investment committee for FY2008 was chaired by Paul Dudman and included Kenneth Brown, James Daniel, Steven C. Davis, James H. Holloman Jr., Jenee Lister and William Shdeed. Serving in an ex officio capacity were Kirkland Hall, Edward Barth, Christian K. Keesee, John Linehan and Stephen Mason. This committee, along with investment counsel, Hotchkiss Associates LLC, determined asset allocation between equity and fixed income sectors. Currently, the target percentage of the general pool invested in equities is 62.5 percent with 32.5 percent in fixed income investments and 5 percent allocated to cash. To provide diversity in the portfolio, the committee addresses allocation as to different styles of equity management and chooses style specific professional investment managers. Investment portfolios and performance are reviewed quarterly by the investment committee, with the managers being judged on a time horizon of three to five years. The benchmark used for the general investment pool return is a weighted average of S&P500 index (65 percent) and the Lehman Intermediate Government Credit Index (35 percent). Individual managers are compared to style specific market indices.
