Investments

ETCF’s investment strategy is designed to provide a predictable and stable total return for grantmaking while maintaining the purchasing power of the Foundation's assets over the long term, with the goal of enabling our donors to achieve both their philanthropic and financial objectives.

Our investment committee, made up of volunteer professionals in the investment industry, guides the investment strategies of the Foundation.

Committee members are:

 

  • Thomas Smith, Investment Chair, Senior Vice President, Branch Director, RBC Wealth Management
  • James Richard Allen, CPA, Henry and Peters, P.C.
  • Douglas G. Bolles, Sr. Vice President, Southside Wealth Management
  • Brad Brookshire, Chairman, Brookshire Grocery Company 
  • Bob Dyer, Vice Chairman and CEO, BankTexas
  • Tony Morgan, CPA/ABV/CFF, Gollob Morgan Peddy
  • A.W. “Whit” Riter, III, President, Riter Management Co., L.C.
  • Thomas M. Woldert, Co-Owner, RE/MAX Tyler

 

Our Investment strategy: To meet the philanthropic objectives of various donor funds, investments can be placed into one of three investment strategies, which are each available in both an actively managed portfolio and index fund portfolio. Index fund portfolios utilize exchange traded funds or ETFs.

       Conservative     
Conservative
ETF Fund
80% Fixed Income
80% Fixed Income
20% Equities
20% Equities
    Moderate   
Moderate
ETF Fund
40% Fixed Income
40% Fixed Income
60% Equities
60% Equities
Growth 
Growth
ETF Fund
20% Fixed Income
20% Fixed Income
80% Equities
80% Equities

Portfolio Selection: Nonprofit endowment funds and scholarship funds are typically invested in the Moderate Portfolio. Donors contributing funds with balances of $500,000 or more may recommend that the funds be invested with an outside manager. All outside managers must be approved by the Foundation’s Investment Committee and must agree to abide by the Foundation’s investment policy.

   

Investment Performance

Investment Performance

For the Year Ending September 30, 2016

                                                    Portfolio Qtr. Ended YTD through  1 Yr Ended  3 Yrs Ended 5 Yrs Ended Inception through Portfolio Inception
Date
               
CONSERVATIVE              
UBS 1.55% 6.11%  7.70% 4.57% 5.39% 5.26% 02/2003
Index 1.4% 6.1%  6.9% 5.3% 5.7% 5.7%  
               
MODERATE              
UBS 2.69% 7.07%  10.43% 6.03% 8.66% 5.97% 02/2003
Index 3.3% 6.3%  9.8% 6.5% 9.8% 7.3%  
UBS Moderate ETF 3.19% 6.08%  9.10% 5.43% 8.4 8.45% 09/2011
Index 3.3% 6.3%  9.8% 6.5% 9.8 9.8%  
               
GROWTH              
UBS 3.74% 7.62% 12.15% 6.68% 10.69% 7.56% 02/2003
Index 4.2%  6.4% 11.2% 7.2% 12.0% 8.0%  
UBS Growth ETF 4.12% na na na na 6.14% 03/2016
Index 4.2% 6.4% 11.2% 6.9% 11.7% 5.9%  

Investment Allocations

  Conservative Moderate Growth
Asset Manager Active Passive Active Passive Active Passive
PIMCO-Taxable - Total Return 64%   24%      
Western Asset     16%   10%  
PIMCO - ETF         10%  
BlackRock-Core Fixed Income 16%          
iShares Core Aggregate Bond ETF   80%    40%   20% 
  Subtotal-Fixed Income 80% 80%  40% 40%  20% 20% 
Delaware-Large Cap Value 10%   18%   23.5%  
Loomis Sayles-Large Cap Growth 10%   18%   23.5%  
Vanguard Russell 3000 ETF   15%   40%   55%
NFJ-Small Cap Value     4%      
Apex-SMID Cap Growth     5%   13%  
Delaware-International Value     7%      
Invesco-International Growth     6%   20%   
iShares Core MSCIEAFE ETF   5%   20%   25%
Arden Access Fund-Absolute Return     1%      
Arden Focused Global Fund     1%       
  Subtotal-Equity 20% 20%  60% 60%  80% 80% 
Total 100%  100% 100% 100% 100%  100%

 

 

Investment Comparatives

ETCF Asset Manager
Comparative Asset
PIMCO-Total Return Barclays Capital Aggregate
Western Asset Barclays Capital Aggregate
PIMCO-ETF Barclays Capital Aggregate
BlackRock-Core Fixed Income Barclays Capital Aggregate
iShares Core Aggregate Bond ETF Barclays Capital Aggregate
Delaware-Large Cap Value Russell 1000 Value
Loomis Sayles - Large Cap Growth Russell 1000 Growth Index
Vanguard Russell 3000 ETF Russell 3000 Index
NFJ Small Cap Value Russell 2000 Value Index
Apex-SMID Cap Growth Russell 2500 Growth Index
Delaware-International Value Morgan Stanley Capital International Europe Australia Far East Index
Invesco-International Growth Morgan Stanley Capital International Europe Australia Far East Index
iShares Core MSCI EAFE ETF Morgan Stanley Capital International Europe Australia Far East Index
Arden - Alternative Investments Hedge Fund Research Fund of Funds
 
© East Texas Communities Foundation
315 N. Broadway, Suite 210 • Tyler, Texas
903-533-0208 • 1-866-533-ETCF