Investment Strategy

Mounting the Canal Community Mural at Canal Welcome Center by Sali Mohammed, Ernesto Olmos, Douglas Mundo and Pamela Morton.

Investing to Fuel Impact

Diligent stewardship of our assets matters because strong performance means that together, with our community of donors, we can make a greater impact in the Bay Area.

When you invest with The San Francisco Foundation, you gain access to top-notch investment managers, as well as exceptional performance and the guidance of an industry-leading Investment Committee.

Investment Portfolios and Objectives

The Foundation’s assets are invested in one of four investment portfolios based on fund type and objective. We have established asset allocation targets consistent with the investment objectives of each portfolio. Actual allocations are managed within a policy-defined range of these targets, with rebalancing to target when appropriate.

We believe that our allocation policies lead to long-term success in meeting investment objectives under a variety of market conditions. Market timing is not part of our investment philosophy. Strict adherence to asset allocation policy eliminates the temptation to predict short term market behavior and the associated risks.

Fundholders can choose to allocate their fund to any one of these, or a blend of them. Funds to be managed in perpetuity are invested in the Endowment Portfolio.

Endowment Portfolio

Designed for: Maintaining asset value in perpetuity while serving the current needs of the community

Investment strategy: Inflation-adjusted return consistent with a 5.00% distribution rate

Asset Allocation

Long Term Portfolio

Designed for: Donors choosing to impact both the current needs of the community and those of future generations by enabling reasonable liquidity and maintaining value over time

Investment strategy: Diversified portfolio that provides an inflation-adjusted return consistent with a 5.00% distribution rate and allows flexible grantmaking

Asset Allocation

Socially Responsible Portfolio

Designed for: Donors choosing to impact both the current needs of the community and those of future generations

Investment strategy: Balanced portfolio of securities from issuers screened for social responsibility in areas such as environment, workplace, product safety, human rights, and corporate governance

Asset Allocation

Short Term Portfolio

Designed for: Donors choosing to impact current and near-term needs of the community by maintaining liquidity for grantmaking

Investment strategy: Short duration portfolio whose targeted return matches or exceeds inflation

Asset Allocation

 

Investment Managers

We implement our asset allocation strategy by combining index funds and active investment managers. Working with our investment advisor, Colonial Consulting, we closely monitor performance, adherence to strategy, and the risk exposures of each of its managers. New managers are added in order to improve diversification and to enhance the prospective performance of the portfolio.

Learn more about recent performance and analysis of our investment portfolios.