Investment Recommendation Form
Quasi-Endowed Gift Funds
Foundation For The Carolinas is pleased to offer clients investment preferences for gift funds. The Foundation’s Investment
Committee regularly reviews all gift fund options. For answers to additional questions or guidance in selecting an investment
type, please contact the Foundation’s Client Services department at 704.973.4500 or firstname.lastname@example.org.
Based on your fund’s average year-end balance, select one investment option from those shown below.
Average balance less than $100,000 – Your gift fund will be invested in the Non-Endowed Diversiﬁed
Long-Term Growth Pool.
Average balance greater than $100,000 – Choose one of these two options.
For funds greater than $1 million, other investment managers are available based on the Foundation’s
investment policies. Please indicate the recommended investment manager and contact the Client Services
department for further instructions. Recommended Investment Manager: ________________________________
Investment Option Asset Strategy * Time Frame
Moderate Growth Pool
The Moderate Growth Pool seeks long-term capital appreciation. The Fixed Income 3 - 5 Years
pool offers investors broad domestic and international market exposure, 43%
investing in large cap and small cap securities in developed countries
and emerging markets. There is no exposure to hedge funds or private
Non-Endowed Diversiﬁed Long-Term Growth Pool
15% Fixed Income + 5 Years
The Non-Endowed Diversiﬁed Long-Term Growth Pool seeks long-term
capital appreciation. The pool offers investors broad domestic and 51.5%
international market exposure, investing in large cap and small cap
securities in developed countries, emerging markets and hedge funds. Hedge Funds
* The percentages shown reﬂect target allocations. Actual allocations are available on the Current Managers and Allocations sheet.
By signing below, I (we) understand as set forth in the Charitable Giving Guide that all gift funds are
For internal use:
subject to the policies of Foundation For The Carolinas. The investment recommendation selected
above includes careful consideration of the anticipated annual spending and grantmaking plans for the
Gift Fund Name:
Gift Fund Number:
Signature of Advisor:
Print name: Date:
Mail or fax signed, completed form to: Foundation For The Carolinas, 217 South Tryon Street, Charlotte, NC 28202
Phone: 704.973.4500 • Toll Free: 800.973.7244 • Fax: 704.973.4599 • www.fftc.org updated September 2010
Investment Allocation Summary
All Gift Funds are invested with the guidance of Foundation For The Carolinas’ Investment Committee, which is
appointed by its Board of Directors. The Committee sets objectives, selects professional managers and monitors
performance with the goal of achieving maximum return while minimizing risk. Investment managers have been
selected by the Foundation’s Investment Committee through a competitive process under the direction of Fund
Evaluation Group (FEG). FEG is a full-service, independent investment consultant hired by the Foundation to assist
the Committee in all manners related to the Foundation’s investment program. In consultation with FEG, the
Foundation designed a broadly diversified set of investment strategies using domestic equities, international equities,
alternative assets, fixed income and cash instruments.
Please find below descriptions of allocations. The descriptions include long-term target allocations, which may
differ from actual allocations as indicated on the next page. Depending on your Fund’s balance and type (i.e., non-
endowed, quasi-endowed or endowed), certain allocations may not be available.
Asset Preservation – This pool is designed to maintain principal with no potential for growth or income. (Please
note: Assets in this pool are not FDIC insured.)
Focus: Capital preservation with no potential for growth or income.
Grant percent/timeframe: Immediate use.
Short-Term Fixed Income – Invested in enhanced cash (i.e., money market and short-term fixed income
instruments); seeks capital preservation while providing interest income reasonably obtained under prevailing
market conditions and rates. Return is typically consistent with 30-day T-Bill rates.
Focus: Capital preservation with little fluctuation in the value of invested principal and a low level of overall risk.
Grant percent/timeframe: Immediate use.
Conservative Growth & Income – Seeks long-term growth of income along with low to moderate long-term
capital appreciation. Invested in the Vanguard Wellesley Income Fund, with a target asset allocation of 60%-65%
investment grade fixed income securities and 35%-40% in dividend-paying equities.
Focus: Income with moderate capital appreciation for funds preferring current income over capital appreciation.
Grant percent/timeframe: Up to the full balance within 2 to 5 years.
Moderate Growth – Offers broad domestic and international market exposure, investing in large cap and small
cap securities in developed countries and emerging markets. Target allocation of 43% fixed income and 57%
Focus: Capital appreciation without exposure to alternative investments, such as hedge funds.
Grant percent/timeframe: No more than 5-10% of the balance annually with balance maintained for a minimum of
3 to 5 years.
Non-Endowed Diversified Long-Term Growth – Broadly diversified allocation, offering domestic and
international market exposure, investing in large cap and small cap securities in developed countries and
emerging markets with an allocation to hedge funds to improve the overall risk/return profile of the total portfolio.
Target allocation of 33.5% fixed income, 51.5% equity and 15% hedge funds.
Focus: Capital appreciation with diversification for non-endowed and quasi-endowed funds.
Grant percent/timeframe: 5% or less of the balance annually with balance maintained for a period greater than 5
Endowed Diversified Long-Term Growth – Recommended by the Foundation’s Investment Committee for
endowed funds. Broadly diversified allocation, offering domestic and international market exposure, investing in
large cap and small cap securities in developed countries and emerging markets, with a greater allocation to
alternative investments, split between hedge funds and private capital investments, to improve the overall
risk/return profile of the total portfolio. Target allocation of 34% fixed income, 36% equity and 30% alternative
Focus: Capital appreciation with diversification for endowed funds, which by definition are designed to last in
perpetuity and require a long-term (greater than 5 years) investment strategy.
Grant percent/timeframe: 5% or less of the balance annually with a balance maintained in perpetuity.
updated September 2010
Current Managers and Allocations
S-T Fixed Conserv. Moderate
1 Term Growth2
Asset Class Current Managers Income Growth & Growth
Enhanced Cash Sterling Capital Management 100.0% - - - -
Subtotal Cash 100.0% - - - -
Intermediate Bond PIMCO Total Return Fund - - 34.0% 24.3% 24.8%
Loomis Sayles & Co. - - 5.0% 4.7% 4.7%
Treasury Inflation Protected Securities Vanguard - - 5.0% 5.0% 5.0%
Subtotal Fixed Income - - 44.0% 34.0% 34.5%
Large Cap Growth Harbor Funds - - 5.0% 5.0% 5.0%
S&P 500 Index Fund State Street Global Advisors - - 12.0% 6.5% 4.0%
S&P 500 Enhanced Index PIMCO StockPlus - - 12.0% 6.5% 4.0%
Small Cap Value Cramer Rosenthal McGlynn - - 5.5% 8.0% 5.7%
Small Cap Growth TimesSquare Capital - - 5.5% 8.0% 5.7%
International Equity (Broad) EuroPacific Growth Fund - - 10.0% 10.0% 10.0%
International Small Cap Dimensional Fund Advisors - - 2.0% 2.5% 3.0%
Emerging Markets Dimensional Fund Advisors - - 4.0% 4.2% 4.3%
Subtotal Equity - - 56.0% 50.7% 41.7%
Absolute Hedge Fund-of-Funds Blackrock Alternative Advisors - - - 1.6% 1.6%
FEG Investors - - - 3.4% 3.4%
Absolute Return Direct Hedge Funds Eton Park Capital Management - - - 1.3% 1.3%
GSO Special Situations - - - 1.3% 1.3%
Shepherd International - - - 0.3% 0.3%
Directional Hedge Fund-of-Funds Common Sense Long-Biased - - - 5.0% 5.0%
Directional Hedge Funds Highside Offshore - - - 1.0% 1.0%
M. Kingdon Offshore - - - 1.0% 1.0%
Sansar Capital - - - 0.5% 0.5%
Subtotal Hedge Funds - - - %
Private Energy Kayne Anderson Capital Advisors - - - - .7%
Private Real Estate Beacon Capital Partners - - - - 1.4%
Covenant Capital Group
North American Real Estate
Private Equity Northgate Capital - - - - 1.4%
Siguler Guff & Company
Other – Multi-Strategy Global Endowment Management - - - - 5.0%
Subtotal Private Capital - - - - 8.5%
Balanced Fund (Wellesley Income Fund) Vanguard - 100.0% - - -
Subtotal Other - 100.0% - - -
Grand Total 100.0% 100.0% 100.0% 100.0% 100.0%
Investments for funds vary depending on the type of fund, the level of risk, the length of investment period, the level of diversification and the overall charitable objective. Contact
Client Services at 704.973.4500 for information regarding fund service levels and the asset strategies available for your Fund.
Investment Committee Recommendation (typical endowment). The Strategy listed represents the Foundation’s current actual allocation.
Hedge fund managers currently holding assets. Investments in Blackrock Alternative Advisors and Shepherd International are in the process of being phased out.
updated September 2010