Note: Q1 2024 investment performance data and statements will be available on May 16.
Investment Strategy & Performance
As stewards of the charitable funds entrusted to us, Berkshire Taconic Community Foundation is committed to seeking the best possible returns while minimizing risk so that donors can grant more to the communities and causes they care about—now and for years to come.
Investment Performance as of March 31, 2024
| Pool | 1 mo. | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | Assets |
|---|---|---|---|---|---|---|---|
Managed Pool | 2.1 | 15.9 | 7.6 | 10.6 | 9.8 | 8.6 | $202.6M |
| Managed Pool Benchmark | 2.0 | 14.5 | 6.0 | 9.6 | 8.8 | 7.5 | N/A |
| Traditional 65% Equities / 35% Bond Index | 2.2 | 14.9 | 2.9 | 6.8 | 6.8 | 5.7 | N/A |
| Socially Responsible Pool | 2.3 | 18.4 | 4.8 | 8.3 | 7.8 | 7.4 | $18.5M |
| Income Pool | 0.8 | 4.6 | 0.2 | 1.9 | 2.2 | 2.1 | $2.6M |
| Minimum Risk Pool | 0.4 | 5.1 | 2.5 | 1.8 | 1.7 | 1.2 | $4.2M |
Investment Commentary & Return Detail
The Foundation’s Managed Pool is an endowment model portfolio that is diversified among public equities and fixed income investments and alternatives flexible capital (hedge fund) and private equity investments. The goal of the portfolio is to achieve strong long-term returns with lower volatility than similar marketable portfolios while maintaining the purchasing power of our endowment funds over time. Investment, consultant and custodial fees total 1.06%, and returns are reported net of managed fees.
Investment Commentary: Q1 2024
The Managed Pool portfolio gained 5.3% in the first quarter of 2024, matching the Policy Index. As of March 31, total assets were $202.6 million, and all asset segments were allocated within their respective target ranges. The Wellington Global Research Equity Extended Fund is a relatively new addition to the portfolio and has performed well in this environment. Since its inception in November 2023, it has increased 25.3%. Investment markets continue to be driven primarily by the anticipated path of interest rates, inflation headlines and enthusiasm in AI. With this momentum, public equities were the main driver of returns.
| Asset Class (% of Allocation) | Lower Boundary | Upper Boundary |
|---|---|---|
| Global Equity (Public and Private) | 50% | 80% |
| • Global Public Equity | 35% | 65% |
| • Domestic Equity | 25% | 50% |
| • Non-U.S. Developed Equity | 7% | 20% |
| • Emerging Markets Equity | 0% | 10% |
| • Private Equity | 15% | 28% |
| Flexible Capital | 15% | 30% |
| Global Fixed Income | 0% | 20% |
| Real Assets | 0% | 10% |
| Cash | 0% | 10% |
Investment Commentary: Q1 2024
The Socially Responsible Pool portfolio gained 5.9% in the first quarter of 2024, just below its Policy Index return of 6%. As of March 31, the portfolio had $18.6M in assets and is highly liquid, with 82.5% of its investments offering daily liquidity. The portfolio has adopted new targets of 75% equity and 25% fixed income, as the Foundation has redeemed from our two hedge fund positions.
| Asset Class | Ranges |
|---|---|
| Global Equity | 55-80% |
| Private Equity | 0-5% |
| Flexible Capital | 0-20% |
| Real Assets | 0-20% |
| Fixed Income | 0-20% |
| Liquidity | 0% |
Appropriate for fundholders who seek to minimize risk and reduce volatility. This pool is invested in bond funds. The average annual investment fees are 0.46% and the allocation is 100% fixed income and cash equivalents.
View current performance
Accommodates funds that are generally short term in nature and are focused on investment of capital with minimal risk. The Money Market Pool earned 4.8% in 2023, trailing the FTSE 2 Month T-Bill returns of 5.3%.
Financial Information
Founded in 1987 with an anonymous donation of $100,000, we now manage charitable assets of $200 million. Through sophisticated investing, careful management of operating expenses and generous contributions from individuals, families and organizations, we continue to grow and serve as an enduring source of support for current and future needs.
