The Princeton Area Community Foundation

The Princeton Area Community Foundation - Investing Our Assets

The Princeton Area Community Foundation's charitable assets held for long-term grantmaking are invested in The Permanent Pool — a pool of investments created specifically for the Community Foundation. The Investment Committee monitors the Pool’s performance on a quarterly basis and oversees the Community Foundation's investment policy.

Description and Investment Objective

The Permanent Pool has a long-term time horizon and is structured with the objective of achieving returns greater than the combined total of the Community Foundation's spending policy, administrative costs and inflation. All of the investment management firms are nationally renowned. The guiding philosophy of the Pool's management at all times is to promote the prudent stewardship of funds entrusted to the Community Foundation for the benefit of the community of donors and charitable organizations we serve.

Total Return Investment Philosophy

The Community Foundation uses a total return approach to investment management under the Uniform Management of Institutional Funds Act. Total return is a term used to describe the change in fund value over a given time period resulting from both interest, dividends, and capital appreciation (realized and unrealized gains).

Investment Performance

Shown below is the historical performance of the Permanent Pool as of December 31, 2007

All returns are reported net of investment management fees:

	1 Year	3 Year Annualized	5 Year Annualized
Total Fund	10.66%	11.64%	13.52%
S&P 500	5.49%	8.62%	12.83%
Lehman Aggregate	6.97%	4.56%	4.42%
Blended Benchmark* *Based on PACF's asset allocation target of 50% equities, 25% fixed income and 25% independent return.	10.70%	11.01%	13.52%

Past performance is no guarantee of future results

Investment Strategy and Structure

The Permanent Pool is broadly diversified across asset classes and investment styles in order to enhance investment results in all market environments.

An important part of the Community Foundation's portfolio is its diversification which includes domestic and international stocks and bonds and alternative assets (real estate & private equity). As central New Jersey’s community foundation, we invest for the long-term. The Community Foundation’s Investment Committee reviews the portfolio’s asset allocation and the investment performance of each manager on a quarterly basis.

Asset Class	Range
Domestic Equity	25 to 35%
International Developed Markets Equity	5 to 15%
International Emerging Markets Equity	5 to 15%
Independent Return	20 to 30%
Fixed Income	20 to 30%

Fees

Investment management fees for the Permanent Pool are roughly 0.60% per year paid to external managers. The Community Foundation takes no fee for investment management.
Each charitable fund within the Pool pays its pro rata share.
If you have questions about the investment program, please contact our Chief Financial Officer, Maria Santisi at msantisi@pacf.org.

Charitable assets held for short-term grantmaking (less than two years) are invested in the Community Foundation's Money Market Pool. Fees are approximately 0.30% per year: and each charitable fund within the Pool pays its pro rata share.

Princeton Area Community Foundation
15 Princess Road, Lawrenceville, NJ 08648

609.219.1800

info@pacf.org