Investment Q&A with Kevin Welu

Published: March 19, 2015 | By: Greater Cedar Rapids Community Foundation | Category:
Kevin Welu
True North Wealth Management
Chair, Investment Committee

Q. What is the investment philosophy of the Community Foundation?

A. Our philosophy is to invest in a highly diversified global portfolio. The intent is to provide the best possible returns while mitigating risk. The portfolio is diversified to produce a better return, with less risk while investing in both public and private capital markets.

Q. What are the goals and objectives of the portfolio?

A. The long-term investment objective of the Community Foundation is to achieve a total return in excess of the sum of the distribution rate, the long-term inflation rate, and the aggregate costs of portfolio management. The goal is to achieve a return that allows the Community Foundation to make grants now while maintaining future granting power.

Q. How does the Community Foundation calculate spending?

A. The current distribution rate is 4.5%. The distributable amount is calculated as the distribution rate multiplied by the average market value for the trailing twelve quarters ending on December 31.

For more frequently asked questions about the Community Foundation investment strategy, click here.

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