Investment Strategies

Read the 2014 Financial Report prepared by Cornerstone Advisors.

Orcas Island Community Foundation funds are pooled with the intent of maximizing returns while meeting our fiduciary responsibilities. They are invested by professional money managers through our consultants, Cornerstone Advisers, under the supervision of our board Investment Committee which is populated by experienced investment and financial individuals. Copies of the Committee Charter and Investment Policy Statement are available upon request.

After spending many years in partnership with The Seattle Foundation as managers of our endowment, the Orcas Island Community Foundation took this function in house in 2012. Our objectives in making this change were to improve upon investment results, reduce fees charged to our partners, and to produce more timely and accurate balance information. While time will tell as it relates to improved investment returns, OICF was pleased to recently report to its endowment partners that our other two objectives had been met.

Total advised assets exceed $11.8 million and are invested in one of two silos. The larger of
the two is what is commonly referred to as a balanced portfolio consisting of a mix between common stocks, both domestic and international, and shorter term fixed income instruments. The allocation of assets between the two primary classes is periodically adjusted based upon a valuation analysis conducted by our advisers and the Investment Committee. The second silo is a certificate of deposit portfolio and is designed to address the aspirations of some of our partners to prioritize preservation of capital. At present, the average maturity of this portfolio is under one year in order to address risks associated with an anticipated rise in interest rates.

As a result of administration of assets being maintained internally and timely reporting by
our consultants and asset custodian, Charles Schwab, we are able to provide account balance information to our constituents in less than three weeks following the close of each calendar quarter. Online access to fund balances is maintained by OICF for the benefit of our stakeholders on an ongoing basis and is password protected (see Fund Holder Log On page).