Investment Strategy

INVESTMENT STRATEGY

Working with Graystone Consulting, a business of Morgan Stanley Smith Barney, EBCF offers five (5) options for the investment of funds by our clients. These options, described in detail below, are all consistent with our Investment Policy, a copy of which is available upon request. The five (5) investment options provide choices based on the pace at which funds are to be spent so that financial returns are maximized according to funds available for investment. To see the current investment performances of these five (5) investment options, click here.

To contact Graystone Consulting directly, contact Institutional Consulting Director, Mark T. Curtis, 1001 Page Mill Road, Building 4, Suite 101, Palo Alto, CA 94304 or click here to email Graystone.

Cash Pool

The goal of the Cash Pool is capital preservation with a secondary objective of current income. This Pool is appropriate for Fund Holders with a grantmaking horizon of less than 1 year and average annual spending greater than 33% per year. The pool utilizes a registered money market fund. Expected annual investment fees are estimated to range from 0.10% to 0.20% per year.

Short-Term Pool

The goal of the Short-Term Pool is to provide current yield consistent with short-term fixed income investments with a secondary objective of capital preservation. This Pool is appropriate for Fund Holders with a grantmaking horizon between one and three years and average annual spending of approximately 33% per year. The pool utilizes a combination of active and passive fixed income investment managers. Expected annual investment fees are estimated to range from 0.40% to 0.60% per year.

Intermediate-Term Pool

The goal of the Intermediate-Term Pool is to support modest growth of principal to hedge inflation and expenses and is appropriate for Fund Holders with a grantmaking horizon between three (3) and seven (7) years and average annual spending of approximately 14%. The Intermediate-Term Pool is structured to establish priority for intermediate-term growth over capital preservation. The Pool is a diversified portfolio composed of investments in a mix of low-cost stock, bond, money market and other investment funds and utilizes a combination of active and passive investment managers. Expected annual investment fees are estimated to range from 0.60% to 0.90% per year.

Long-Term Pool

The goal of the Long-Term Pool is to support long-term growth of assets and is appropriate for Fund Holders with a grantmaking horizon greater than seven (7) years and average annual spending of less than 10%. The Long-Term Pool is structured to establish priority for long-term growth over capital preservation. The Pool is a diversified portfolio composed of investments in a mix of low-cost stock, bond, money market and other investment funds and utilizes a combination of active and passive investment managers. Expected annual investment fees are estimated to range from 0.70% to 1.10% per year.

Environmental, Social and Governance (ESG) Pool

The goal of the new ESG Pool – our investment pool aimed at social impact investing — is to provide sustainable long-term returns through equities and fixed-income securities in public companies effectively and prudently governed with respect to, for example, their impact on the environment, sustainable business practices, contribution to local communities and promotion of diversity and gender equality in the workplace. Owning these securities enables investors to promote long-term and meaningful change by influencing corporate behavior. Similar in composition to our Long-Term Pool and designed to achieve returns commensurate with it, the ESG Pool is a strong fit for donors with long-term granting horizons of seven (7) to 10 years or more. Expected annual fees are estimated to be 0.60% per year. For details on this pool, click here.

asset-allocation

Custom Portfolio


The Foundation will consider new investment managers for funds of $1 million or more. For more information on the Donor Recommended Investment Manager option, please contact Ed Harris, Chief Financial Officer, at (510) 208-0829, or at eharris@eastbaycf.org.

Contact Ed Harris for more information.