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 800 endowment funds 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.

The Investment Structure and Performance section below 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 FY2012, the cost of investments at the Oklahoma City Community Foundation was 35 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 Rhonda Godwin at 405.606.2916 or Nancy Anthony at 405.606.2900.

Investment Structure and Performance
Diversification is a hallmark of a solid endowment investment policy and is one of the greatest advantages our investment program offers. The general investment pool is invested in all classes of domestic equities, in a range of fixed income securities and also has exposure to international markets. We provide a “balanced” portfolio by allocating assets to highly qualified managers in a wide-range of investment classes. Due to the size of our investment pool, this level of equity exposure is available so that even the smallest funds benefit.

All Oklahoma City Community Foundation investments are overseen by an active committee of community leaders, both Trustees and non-Trustees, who bring strong investment expertise. FY2013 committee members are Bond Payne (chairman), Steven Agee, Steven C. Davis, Paul Dudman, Kirkland Hall and James H. Holloman Jr. Community representatives are Peter Delaney, Scott Mueller and Edward Krei. J. Edward Barth and Christian Keesee serve as ex officio members of the committee. This committee, along with investment counsel, United Capital Financial Advisors LLC, determine asset allocation between equity and fixed income sectors.

Currently, the target percentage of the general pool invested in equities is 60 percent with 35 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. Beginning in FY2013, we have added additional benchmarks to compare investment performance in both equities and fixed income. One benchmark compares performance to the Standard and Poor’s 500 stock index and the Barclays Capital Government/Credit Intermediate bond index and total return is compared to a composite of these two indices. A second benchmark compares performance to the Russell 3000 stock index and the MSCI ASWi ex US International equity index and the Barclays Capital Government/Credit Intermediate bond index and total return is compared to a composite of these three indices.

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. Individual managers are compared to style specific market indices. See Investment Objectives & Policies for General Pool.

FY2013 Third Quarter Investment Performance
FY2013 Second Quarter Investment Performance
FY2013 First Quarter Investment Performance
Fiscal Year 2012 Investment Report
Fiscal Year 2011 Investment Report