Statement Regarding the Growth and Investment Results of the Endowment Fund
Luther F. Carson Four Rivers Center
Submitted by Paula Bright, Investment Committee Chair
The past year was one of great change for the Endowment and its committee. Guided by the great foundation left for us by Mr. Joe Powell and his committee, we looked forward to the future needs of the Endowment and began laying the groundwork for future growth. The future growth of the Endowment takes into consideration the growth from investment results as well as the Planned Giving Committee's goal of $20 million by 2015. Substantial progress has already been made toward that goal in a variety of ways. First, there are $4,760,000 of remaining pledges to the Endowment. Through the new Encore and Legacy Societies, we have two committed declarations by Will that total more than $1,000,000. The totals of the current Endowment pledges and declarations bring us to over $12,000,000 toward our $20,000,000 goal.
With this goal of $20,000,000 by 2015 in mind, we evaluated the current Investment Policy that was created when the endowment first began in November 1994. It became clear that a new and updated Investment Policy Statement was needed, outlining a more detailed and far reaching guidance for the committee to follow. A decision was made to write a new Investment Policy Statement for the endowment fund and begin a transition over the next two years to move toward the new policy.
The new investment policy allows for continued focus on income to provide for support of center operations while also allowing for a target allocation with growth also in mind. The mean target over the next two years would shift from the current allocation target of 60% fixed income and 40% equities to closer to 50% fixed income and 50% equities with adjustments within a range allowed for ongoing economic conditions.
The committee is chaired by board member Mrs. Paula Bright. Committee members include two members from the community at large, Mr. John Halsell and Mrs. Maggie Hawkins and also two board members, Judge William Howerton and Mr. Alex Edwards. Upon leaving his board service, Judge Howerton resigned from our committee, allowing us to add Mrs. Annie Hale Mills as our newest committee member from the board. Our new Investment Policy Statement states that the committee chair is appointed by the board chair. The committee must have two members from the board selected by the committee chair and two members from the community at large selected by the committee.
The Endowment fund had a successful year of investment results as follows:
As of 6/30/2007 |
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| Beginning Balance: | $5,668,081 |
The fund followed an allocation target of 60% fixed income and 40% equities in order to achieve the targeted income distribution to help support center operations as well as continue the growth of the endowment. Total managed asset rate of return for the year ended 6/30/2007 was 12.60%. *Payback from Operations is a 2006 Board Authorized amount in excess of actual needs that was refunded to the Endowment Fund from oeprations. |
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| Donations/Deposits: | 70,059 |
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| Payback from Operations* | 247,534 |
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| Distributions: | (177,416) |
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| sub-total: | 5,808,258 |
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| Investment Results: | 711,136 |
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| Ending Balance: | $6,519,394 |
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Regards,
Paula Bright, Investment Committee Chair