Investments - Learn About BTCF - Berkshire Taconic Community Foundation

Berkshire Taconic Community Foundation preserves and protects your investments and charitable intentions forever. When you establish an endowment through BTCF, your gift continues to grow and benefit your community now and in the future. The pooled resources of BTCF’s many donors gives you access to a highly diversified portfolio with world-class money managers who would not otherwise be available to you.

As stewards of the charitable resources entrusted to us, BTCF works to manage your investments 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. Our goal is to grow your endowment so that you can grant more to the causes you care about. Learn more about our investment program by watching our 2019 Investing for Good webinar.

Investment Pools & Performance

End of Year Market Review 2018 [PDF]

September Market Review 2019 [PDF]

POOL  Q3 2019
 
YTD
2019
 
1-YR 
RETURN  
3-YR
RETURN  
5-YR
RETURN 
7-YR
RETURN  
10-YR
RETURN  
 ASSETS UNDER MGMT
  Primary Managed Pool 0.9  12.4 3.6  8.9  6.8  7.9  8.0  $141.3M
Managed Pool Benchmark* 0.3  11.3 3.5  7.5  5.6 7.0 7.3 N/A
  Traditional 65% Equities /
  35% Bond Index
0.3 12.9 3.9 7.0 5.2 6.2 6.4 N/A
  Socially Responsible Pool 0.8  13.2  4.0  7.5  6.6  8.3  7.8  $11.9M
  Income Pool 1.9 6.8  7.1  3.0  2.9  2.3  3.6  $0.80M
  Minimum Risk Pool 0.5  1.5  2.0 1.2  0.7  0.5  0.4  $1.9M
 

Primary Managed Pool Performance as of September 30, 2019

The Berkshire Taconic Community Foundation managed pool portfolio gained 0.9% in the third quarter of 2019, bringing total assets to $141.3 million. The portfolio posted strong relative returns, exceeding our managed pool benchmark by 0.6% during the period. Over the longer-term, the portfolio remains ahead of our policy benchmark indices on a trailing one-, three-, five-, seven- and 10-year basis, largely due to strong absolute and relative performance within the global equity and flexible capital segments.

In absolute terms, the portfolio benefited from positive results in all broad asset categories during the quarter. Global equities advanced 1.0%, as the domestic allocation contributed a gain of 1.5%, although the non-U.S. developed sleeve detracted 0.7%. The flexible capital lineup returned 0.4%, finishing ahead of our industry benchmark—the HFRI Fund-of-Funds Composite Index (-1.1%). Fixed income put up another strong quarter on an absolute basis, adding 2.1% as rates continued to fall, and cash posted modest positive gains.

The foundation’s managed pool portfolio is diversified and has been designed to perform well in a variety of market conditions to generate long‐term growth in excess of inflation and meet spending needs. The Investment Committee is committed to the long‐term, strategic management of portfolio assets, and makes judicious adjustments to the asset allocation and underlying managers when necessary.

The portfolio remains highly liquid and well-positioned to take advantage of new opportunities as they are identified. Total assets in the managed pool at September 30 were allocated 55.1% to global public equity, 10.8% to global private equity, 23.9% to flexible capital, 8.3% to global fixed income and 1.9% to liquid capital. The portfolio’s asset allocation remains within our target ranges for each asset class.

SRI Portfolio Performance as of September 30, 2019

The SRI portfolio has grown to $11.9 million in total assets, with new contributions and third-quarter returns of 0.8% or 0.5% more than our policy index.

This portfolio is competitive with our managed pool and includes two portfolio screens:

  • 100% exclusion of: Nuclear power, fracking, tar sands, carbon reserves, coal, and oil, gas and consumable fuels.
  • Less than 5% of revenue: Gambling, civilian firearms, alcohol, for-profit prisons, audit entertainment.

Prime Buchholz, our independent consultant, has recertified our portfolio as being in compliance with our social impact screens.

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 Current Performance [PDF]

10.1% 10-year average annual return* / 6.5% 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%.

*Net of investment manager fees

View a description of the asset mix.
 

 

SRI Pool Current Performance [PDF]

7.8% 10-year average annual return* / 6.6% 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, and are willing to forgo annual return potential in certain market segments of the broader economy, that may or may not affect total return. The average annual investment management fee is 0.45% and the allocation is 60% equities and 40% fixed income and cash equivalents.

*Net of investment manager fees

Income Pool Current Performance [PDF]

3.6% 10-year average annual return* / 2.9% 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.

*Net of investment manager fees

Minimum Risk Pool Current Performance [PDF]

0.4% 10-year average annual return* / 0.7% 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

About This Photo
About This Photo
Columbia County, NY. Photo by David Lee

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