Investments - Learn About BTCF - Berkshire Taconic Community Foundation

As stewards of the charitable funds entrusted to us, Berkshire Taconic Community Foundation is committed to seeking the best possible returns while minimizing risk so that donors can grant more to the communities and causes they care about—now and for years to come. 

BTCF's investment program is guided by our nationally recognized Investment Committee – a group of board and community members with deep institutional investment experience. The Committee employs top Investment Managers in each class.

Investment Strategy

BTCF’s investment strategy is to maximize return while preserving capital and liquidity, producing consistent and stable growth with low to moderate risk. Learn more about our investment program by watching our Investing for Good webinar below.


QUARTERLY INVESTMENT RETURNS SUMMARY AS OF JUNE 30, 2022

POOL  Q2 2022
1-YR 
RETURN  
3-YR
RETURN  
5-YR
RETURN 
7-YR
RETURN  
10-YR
RETURN  
 ASSETS UNDER MGMT
  Primary Managed Pool -8.3 -3.5 9.8 9.0 8.3 8.9 $174.5M
Managed Pool Benchmark* -9.8 -7.1 8.2 7.8 7.0 7.8 N/A
  Traditional 65% Equities /
  35% Bond Index
-13.1 -15.4 3.1 4.6 4.9 5.8 N/A
  Socially Responsible Pool -11.1 -13.2 4.4 5.5 5.7 7.0 $17.8M
  Income Pool -2.7 -6.5 0.7 1.7 2.1 1.9 $2.1M
  Minimum Risk Pool 0.1 0.1 0.5 0.9 0.6 0.5 $3.0M

Primary Managed Pool Performance as of June 30, 2022

The second quarter of 2022 was a challenging time for the financial markets. Persistent inflation, rising interest rates, and geopolitical concerns drove all of the markets lower during the quarter. The S&P 500 entered bear market territory, returning -16.1% for the second quarter of 2022. The Russell 3000 Value returned-12.4% outperforming the Russell 3000 Growth, which returned-20.8% during the quarter. And the MSCIACWI declined by 15.7%. Fixed income faced two critical challenges: the highest level of inflation since the1970s and a sharp tightening cycle that was last adopted by the Fed in 1994.The Bloomberg Aggregate returned -4.7% during the quarter. 

Berkshire Taconic Community Foundation’s portfolio returned -8.3% during the second quarter of 2022. Although many of the asset classes had negative returns for the quarter, most managed to outperform their respective benchmarks. Total global equity posted a -10.9% return and outperformed its benchmark by 480bps. Flexible capital returned -3.1% and beat its benchmark by 100bps. Fixed income returned -2.3% and outperformed its benchmark by 240bps. Global private equity returned 2.8% and outperformed its benchmark by 430bps. The portfolio had $174.6M in assets at quarter end and was reasonably aligned with their asset allocation targets. 

SRI Portfolio Performance as of June 30, 2022

The SRI portfolio declined by 11.1% during the quarter, ahead of the policy benchmark by 1.1%. The portfolio has $17.8 million in assets.  

This portfolio is designed to be competitive with our managed pool and seeks to minimize or avoid exposure to:

  • Nuclear power, fracking, tar sands, carbon reserves, coal, and oil, gas and consumable fuels.
  • Companies with greater than 5% revenue from gambling, civilian firearms, tobacco, alcohol, for-profit prisons, adult entertainment.

Prime Buchholz, our independent consultant, monitors the portfolio’s managers for adherence to our social impact screens.

Income Pool Performance as of June 30, 2022

The income pool portfolio dropped by 2.7% during the quarter. Total assets are $1.9 million. 

For more information on the foundation’s investment program, please contact Vice President of Finance and Administration Joe Baker by email or at 413.229.0370 x112.

*The foundation’s investment benchmarks are calculated as a weighted average of standard financial industry indices in each asset class and appropriate to individual managers based on objectives.


MANAGED POOL

 

View Current Performance

8.9% 10-year average annual return** / 9.0% 5-year annual return**

Created for the bulk of our funds’ assets and structured on the premise that a bias toward quality equity investments will ensure the best total return over time, although it may be more volatile over the short-term. Average annual investment manager fees total 1%. View a description of the asset mix.

 


SOCIALLY RESPONSIBLE INVESTMENT (SRI) POOL

 

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7.0% 10-year average annual return** / 5.5% 5-year annual return**

Created in March 2009 for those individuals or organizations that want fund assets invested with an environmental, social and governance screen, that is better aligned with their values and the foundation’s mission and vision. The average annual investment management fee is 0.45% and the allocation is 60% equities and 40% fixed income and cash equivalents.


INCOME POOL

 

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1.9% 10-year average annual return** / 1.7% 5-year annual return**

Appropriate for funds where minimizing risk and not being subject to short-term equity volatility is important. This pool does not take advantage of potential long-term equity growth. The average annual investment management fee is 0.46% and the allocation is 100% fixed income and cash equivalents.


MINIMUM RISK POOL

 

View Current Performance

0.5% 10-year average annual return** / 0.9% 5-year annual return** 

Accommodates funds that are generally short term in nature and are focused on investment of capital with minimal risk. The return fluctuates with daily money market rates. The investment management fee is 0.0% for this Pool.

**Net of investment manager fees