Investment Practices & Policy
The High Point Community Foundation is a public foundation established to serve the unmet needs of the greater High Point Community. Because the Foundation will operate in perpetuity for benevolent purposes, wise stewardship of the funds entrusted to it is essential to the Foundation’s mission. The Investment Committee of the High Point Community Foundation, under the direction of the Board of Trustees, is responsible for the management of the Foundation’s financial assets. To ensure its accountability to donors, beneficiaries and the community, the Investment Committee provides oversight and adheres to the following investment policies and practices:
GENERAL INVESTMENT OBJECTIVES
The long-term investment objective is to attain an average (as measured over rolling five-year periods) annual real total return of at least five percent. It is recognized that the real total return objective may not be attained every five year period, but it should be attainable over a series of five-year periods.
The long-term financial objective of the Foundation is to provide ongoing monetary support to the operations of the Foundation and to the beneficiaries of donor designated gifts while preserving the inflation-adjusted purchasing power of the invested assets.
The long-term time horizon of the Foundation is twenty years.
INVESTMENT MANAGEMENT PERFORMANCE AND EVALUATION
The investment managers will be required to present a timely quarterly investment report for the Investment Committee, the results and summary of which will be reported to the Board of Trustees. The investment managers will also make formal review presentations as requested by the Investment Committee. Further, the performance of the investment managers will be evaluated by the Investment Committee on a quarterly basis, which will include an in-depth comparative evaluation on an annual basis. Results and recommendations are to be reported to the board.
Current spending target is 4% of assets based on a rolling 3-year quarterly average. The percentage will be reevaluated annually, based on inflation and gifting needs.
INVESTMENT POLICY STATEMENT
Click here to download the High Point Community Foundation IPS.