Impact investments are overseen by the Impact Investment Committee, with due diligence and other support from professional consultants.Īs an endowment builder, HCF’s policy focuses on long-term investing.This committee reviews the investment managers’ reports quarterly to assess each manager’s performance and formally evaluates their performance semi-annually. Public market portfolios are managed by two professional investment firms and are overseen by the Finance and Investment Committee.Two committees of the Board oversee investments to ensure compliance with the policy: HCF invests according to policy guidelines established by the Board of Directors. Since these investments are not actively traded, they are valued at cost in the investments. These alternatives are consistent with the Foundation’s long-term investment horizon and liquidity requirements.
To support our strategy of aligning our assets with our mission and to provide a more diverse and robust portfolio, HCF has committed to investing in alternative asset classes including loans to charities and not-for-profits, private debt, real estate, infrastructure and private equity. Investments not actively traded are recorded at their cost less any impairment of their value. Investments traded in active markets are reported at fair market value. To account for investment market volatility, and in accordance with best practices for endowment management, the spending amount is calculated using the spending rate applied to the fund value averaged over a period of time instead of at a single point in time. With high investment returns and the need in our community - borne out by the Grants & Community Initiatives team community survey and our Vital Signs report - our Board has increased the 2021-22 spending rate to five percent from four percent last year. We do not view this year as “business as usual”. A Foundation-wide spending rate is determined annually based on long-term investment return expectations, reserve requirements for years where returns are below average, and Canada Revenue Agency’s disbursement requirement. Instead, a spending amount is calculated for each fund in accordance with the Foundation’s spending policy. Granting: Our spending policyĪ fund does not distribute its total net income each year. For a more detailed explanation of the fund balance, refer to page 5. Investment earnings are allocated to granting, operating cost recovery and to growing the accumulated donations to account for inflation.
Fsnotes alfred plus#
Fund balance represents accumulated donations plus investment earnings on these donations.
0 kommentar(er)
