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2018 FINANCIALS

The Boston Foundation has a mandate both to fulfill its role as Greater Boston’s community foundation today—by maximizing the dollars available for making grants—and ensuring that the charitable dollars entrusted to the Foundation are available to continue this work tomorrow and in perpetuity. Robust development efforts and a well-diversified investment strategy enable the Foundation to meet these objectives.

FUND FOR THE 21ST CENTURY The Boston Foundation offers three separate investment pools within the Fund for the 21st Century. These three pools allow donors to select the option that best matches the time horizon of their charitable giving plans. Donors may also customize their asset allocation by investing among all three pools. The Balanced Plus Pool asset mix is expected to produce the highest long-term investment return. Accordingly, the Boston Foundation invests its endowment assets in the Balanced Plus Pool.

FINANCIAL OVERSIGHT The Foundation’s Investment Committee establishes investment policy and monitors the individual investment managers and their performance, and the Board sets each year’s spending rate. The Investment Committee is assisted by an independent investment consulting firm.

INVESTMENT PERFORMANCE: as of June 30, 2018 1 YEAR

3 YEARS

5 YEARS

10 YEARS

15 YEARS

Balanced Plus Pool

8.9%

6.5%

7.4%

5.1%

7.3%

Balanced Pool (established 2/1/11)

6.9%

5.2%

5.9%

n/a

n/a

Short-Term Pool (established 1/1/10)

1.3%

0.7%

0.4%

n/a

n/a

65% MSCI A.C. World/35% FTSE World Bond Index

7.6%

6.4%

6.6%

4.8%

6.8%

MSCI All Country World Stock Index

10.7%

8.2%

9.4%

5.8%

8.2%

S & P 500 Stock Index

14.4%

11.9%

13.4%

10.2%

9.3%

FTSE World Bond Index

1.9%

2.8%

1.1%

2.1%

3.5%

Fund for 21st Century Investment Options:

Benchmarks:

60

Profile for BostonFoundation

Better Together: The Boston Foundation 2018 Annual Report