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J e w i sh C o m m u ni t y F e d e r at i on a nd E nd o wm e n t F u nd

INVESTMENT OPTIONS


Maximize your philanthropic capital and giving effectiveness by partnering with the Jewish Community Federation and Endowment Fund

Through effective stewardship of philanthropic assets, the Jewish Community Federation and Endowment Fund (the Federation) enables you to connect your investments to your charitable goals. We are pleased to offer an array of investment options for our Donor Advised Funds. Each Investment Pool represents the best thinking of the Federation’s Investment Committee in partnership with our independent consultants, and provides access to world-class investment managers and strategies typically only available to large institutions. In this brochure, you will find a variety of asset allocation Pools that deploy the same underlying managers and investment philosophy that inform our unrestricted endowment and pension portfolios. These investment options are reviewed according to the highest standards of professional care and fiduciary oversight. Investment Allocations are reviewed regularly by the Investment Committee and specific asset allocations may change accordingly. Any significant changes will be communicated. All new Donor Advised Funds will maintain a $10,000 cash balance which will be replenished monthly at the discretion of the Federation. If you prefer a higher cash balance, please let us know. The Endowment Proxy Pool will be replenished quarterly. Thank you for choosing the Federation as your partner in philanthropy.

“As my ancestors planted for me, so I plant for my children.” - Ta’anit 23a


M o n e y M a r k e t F u n d (Our

Default Portf olio )

The Money Market Fund is designed to provide current income, preservation of capital, and maximum liquidity. Designed for donors seeking: • cash equivalent characteristics • account balances that are not subject to capital market fluctuations* • protection of assets for future grant distributions This is the most risk averse of the investment options. *Average maturity is normally maintained at a dollar-weighted average of 90 days or less, ensuring the objective that the Net Asset Value (NAV) of the fund remains at a constant $1.00 – only the yield goes up and down.

Money Market Fund


RISK

Fixed Income

Conse r va t i ve

(1 0 0 % Fi xed Incom e )

Aggressive

5%

75% Ta x a b l e B onds

20%

• D o dg e & C o x • F ran klin Te mple to n • Van g uard

20% Hi gh Yi e l d B o nds • S e ix In v e stme n t A d v i s or s

75%

5% Ca s h Representative sample of underlying managers as of March 31, 2015


The Fixed Income Pool is designed to outperform Money Market returns with minimal risk to principal. Designed for donors seeking: • fund values that are relatively stable • steady long-term income • to make grants for a period of two years or more 85% of this Pool is benchmarked to an aggregate bond index, 10% to a high-yield index, and 5% to a money market index.

Given its conservative design, an investment in the Fixed Income Fund will most likely not maintain its purchasing power over the long-term due to the combined effects of expected inflation and grant making. Assets are exposed to some credit and interest rate risk and may experience principal loss from year-to-year, especially in a rising interest rate environment.

Fixed Income


C on s e rvat i v e G r o w t h

(3 0 % Equ i t ies/70% F i xe d Incom e )

3%

RI SK

Conse r va t i ve

5%

7%

55% Ta x a b l e B on d s

8% E m e r g ing M ar k e t s

• D o dg e & C o x

• Para m e t r i c

• F ran klin Te mple to n

5%

• Van g uard

55%

10%

12% U S E q u i t y La rge Ca p • D o dg e & C o x

12%

Aggressive

7% I n t e r nat io nal E qu it y • C ap i t a l G u a r d i a n • D o s ge & Cox • M an n i n g & Na p i e r

• Parame tric

3% US E qu it y S mal l / M id C ap

• S trale m & C o .

• In de x Fu n d ( s )

10% HIgh Yield Bonds

5% C ash

• S e ix In v e stme n t A dv iso rs

Representative sample of underlying managers as of March 31, 2015


The Conservative Growth Pool includes equities for long-term growth while serving to protect capital and generate income. Designed for donors seeking: • moderate stability, with some appetite for risk • to make grants for a period of four years or more Containing a balanced exposure to domestic and international equities, the majority of this portfolio is dedicated to fixed income and utilizes the strategy and underlying managers that comprise the Fixed Income Pool.

Given the Pool’s modest equity exposure, account values may fluctuate over the short-term in correlation with current market conditions. Assets are exposed to some credit and interest rate risk and may experience principal loss from year-to-year, especially in a rising interest rate environment.

C on s e rvat i v e G r o w t h


M o d e r at e G r o w t h , Pa s s i v e

(6 0 % Equ i t ies/40% F i xe d Incom e )

5%

RIS K

Conse r va t i ve

Aggressive

5%

12%

35%

18% 25%

35% Ta x a b l e B on d s I n d e x Fu n d (s )

12% E m er g ing M ar k e t s I n de x F u nd( s)

25% U S E q u i t y La rge Ca p I n d e x Fu n d (s )

5% U S E qu it y S m a l l / M id C ap I n de x F u nd( s)

18% I n t e r n a t i on a l Equity I n d e x Fu n d (s )

5% Ca s h

Representative sample of underlying managers as of March 31, 2015


The Moderate Growth, Passive Pool is an equity based, broadly diversified portfolio employing low cost index funds as opposed to active managers. Designed for donors seeking: • exposure to the market with a moderate level of risk • optimized growth for long-term philanthropic capital • to make grants for a period of seven years or more The asset allocation of this Pool mirrors that of the Moderate Growth, Active Pool.

Assets within this portfolio are exposed to market risks and may experience short-term volatility and principal loss from year-to-year. Due to these fluctuations, it is advisable to maintain at least two years of grant making distributions liquid within the Money Market Fund.

M o d e r at e G r o w t h , Pa s s i v e


M od e r at e G r o w t h , A c t i v e

(6 0 % Equ i t ies/40% F i xe d Incom e )

5%

5%

RIS K

Cons e r va t i ve

Aggressive

35% Ta x a b l e B on d s

12% E m er g ing M ar k e t s

• D o dg e & C o x

• Parame tri c

• F ran klin Te mple to n

12%

35%

18%

• M e tro po litan We st

25% U S E q u i t y La rge Ca p

5% U S E qu it y S m a l l / M id C ap

• D o dg e & C o x

• Vulc an Va l u e P a r t n e r s

• Parame tric • Van g uard

25%

18% I n t e r n a t i on a l Equity

5% Ca s h

• C apital Guardian • D o dg e & C o x • M an n in g & N apie r Representative sample of underlying managers as of March 31, 2015


The Moderate Growth, Active Pool is an equity based, broadly diversified portfolio designed to capture long-term capital growth. Designed for donors seeking: • exposure to the market with a moderate level of risk • optimized growth for long-term philanthropic capital • to make grants for a period of seven years or more With twice the equity exposure of the Conservative Growth Pool, this option includes the Fixed Income Pool strategy without an allocation to high yield bonds.

Assets within this portfolio are exposed to market risks and may experience short-term volatility and principal loss from year-to-year. Due to these fluctuations, it is advisable to maintain at least two years of grant making distributions liquid within the Money Market Fund.

M od e r at e G r o w t h , A c t i v e


Endowment Proxy Pool* (6 2 % E qu i t ies / 15% He dge / 23% F i xe d Incom e )

5% 3% 15%

17%

15%

RIS K

Cons e r va t i ve

Aggressive

10% Tax abl e B o nds

27% U S E q u i t y La rge Ca p

• D o dge & Cox

• D o dg e & C o x

• F ran k l i n Te m p l e t on

• Parame tric

• Van gu a r d

• S trale m & C o .

17% E m e rgi n g Ma rk e t s

10% H ig h Yie l d

• C apital Guardian

• S an k a t y

• Parame tric

15% He d ge Fu n d s

15%

15% 15%

• F arallo n C apital

5% U S E qu it y Sm al l / M id C ap

• F in tan Par tn e rs

• Vulc a n Va l u e P a r t n e r s

• Pin e h urst Par tn e rs

13% I n t e r n a t i on a l E q u i t y

3% C ash

• C apital Guardian • D o dg e & C o x • M an n in g & N apie r Representative sample of underlying managers as of March 31, 2015


This pool is constructed to closely replicate the volatility and return targets of the Federation’s Unrestricted Endowment.* Designed for donors seeking: • maximized capital appreciation with exposure to alternative investments • benefits from long-term opportunities realized from a patient investment strategy • to make grants for a period of seven years or more The Endowment Proxy Pool blends growth and controlled risk through a broadly diversified portfolio of global stocks, bonds and hedge fund strategies. *This pool mirrors the Federation’s Unrestricted Endowment, without the use of the private equity asset class. Assets are exposed to market risks and may experience significant volatility and principal loss particularly over the short-term. Due to these fluctuations, it is advisable to maintain at least two years of grant making distributions liquid within the Money Market Fund.

Federation Requirements: • Available for Donor Advised Funds with assets in excess of $100,000 • A minimum $25,000 investment in the Money Market Fund to ensure liquidity for grants

Endowment Proxy Pool


POLICIES

All Donor Advised Funds will maintain a $10,000 cash balance which will be replenished on a monthly basis at the discretion of the Federation. • • •

All Pools are monitored regularly for asset allocations, and rebalanced quarterly as necessary With Investment Committee oversight, tactical asset allocations may occur within the asset allocation ranges specified Investment Pool change recommendations may be made semi-annually

The Federation permits donors with Fund balances of $8 million or more to recommend investments outside of the Pools or choose alternative advisors to manage the assets of the Fund, subject to the approval of the Investment Committee. Please note: The Investment Pools described within are designed to provide a range of diversified asset allocation options. They do not represent a guarantee of actual performance. Donors are encouraged to recommend a strategy consistent with their risk tolerance, charitable planning and grant recommendation plans. Underlying managers, shown on the graphs within, are representative and subject to change. The managers and investment consultants are compensated by fees that are reflected in the investment performance. Further, investment return and principal value may fluctuate such that investments, when redeemed for grant making, may be worth more or less than their original cost. Investments options other than the Money Market Fund are appropriate only for Donor Advised Funds that have a long-term investment objective and do not require substantial funds be available for grants in the near-term.

It is generally advisable to maintain at least two years of grant making distributions within the Money Market Fund.


Talk to us about creating your Jewish legacy

Your commitment to the Jewish community today will significantly empower future generations. By consulting with a member of our team, you can translate your philanthropic interests and goals into a meaningful plan of action.

For more in form at ion EMAIL: DAF@sfjcf.org

Federat ion In ves tment Commi t t ee members ca n be f oun d at JCEF online Federat ion P rofessional s Danny Grossman

Ruth Bender

Chief Executive Officer

Program Director, Philanthropic Funds

Joy Sisisky Chief Philanthropy Officer


1 2 1 S t e u a rt S t r e e t, S a n F r a n c i s c o , C A 9 4 1 0 5 • 4 1 5 . 7 7 7 . 0 4 1 1

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DAF Investment Option 2015  

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