Growth of Assets
The Southeastern Illinois Community Foundation has total assets of $6.1 million as of May 31, 2012.
Stewardship of Assets
The Southeastern Illinois Community Foundation carefully manages long-term charitable funds primarily for the benefit of the communities in southeastern Illinois. Stewardship of the funds entrusted to us is a primary responsibility of the board of directors. An Investment committee made up of local experienced individuals is appointed by the board and works with our professional investment advisor within a framework of policies established by the board to achieve results consistent with conservative long-term growth. In addition, financial statements and accounting policies and controls are audited annually by Gilbert, Metzger and Madigan, an independent auditing firm.
Approach to Investing
The Southeastern Illinois Community Foundation follows a long-term approach to investing. Consistent and balanced investing is fundamental to the Foundation’s overall investment goal, building and maintaining community capital for future use while at the same time supporting current community needs. Our goal is to earn a reasonable return on our investments while maintaining a diversified, high-quality portfolio without undue risk of significant capital depreciation.
2010 saw a 13.7% return on invested assets which out performed the blended benchmark of 12.5% and was slightly under the S & P 500 at 15%.
Allocation of Assets under Investment
Our investment policy, established and periodically reviewed by the investment committee and board of directors, utilizes prudent investment strategies tailored to the unique needs of its charitable funds. It is designed to result in growth sufficient to maintain the real value of a fund’s principal balance and grantmaking capacity over time. The target asset allocation of the investment portfolio is: Non US stocks (25%), US large Cap (27.9%), US Small Cap (17.7%), and US Bonds (29.4%). This target allocation is driven by a long-term investment philosophy.
The Foundation employs professional investment management firms, whose performance the investment committee reviews regularly. The Foundation’s endowed investments are currently managed by First Mid-Illinois Bank and Trust, with banking centers in 18 communities in Illinois.