Investment Strategy


One of Parasol's most important responsibilities is our stewardship of charitable funds entrusted to our care.  We have a broadly diversified investment portfolio that is structured to produce investment returns that exceed market averages while moderating risk, with the goal of enabling our donors to maximize their philanthropic giving.

We do not engage in market timing.  Funds available for investment are invested promptly, and funds needed for distributions are liquidated promptly.  Similarly, market fluctuations do not trigger changes in the investment mix targets for our four investment horizon categories.

Investment Horizon Categories

To meet the philanthropic objectives of donor funds, investments can be made in one or more of four investment horizon categories:  Long Term, Intermediate Term, Short Term and Less Than One Year.  A Fund’s risk appetite and the time horizon over which the Fund will exist determine its investment horizon; the longer the investment horizon, the greater the expected return.

  • Long Term
  • Intermediate Term
  • Short Term
  • Less Than 1 Year

Long Term

Goal:  To achieve average annual returns several percentage points greater than inflation with the prospect of periodic market value drops over market cycles.  Designed to suit endowment funds invested for perpetuity and funds with long remaining lives and modest annual payouts.

 

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Intermediate Term

Goal: Returns slightly greater than inflation over time and an allowance for occasional market value dips within five year periods.  Ideal for funds whose inflows are large, but infrequent relative to annual outflows.

 

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Short Term

Goal:  Relatively steady market values over time plus some inflation protection.  Suited to accounts which receive periodic injections and/or have large annual payouts relative to their average balance.

 

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Less Than One Year

Goal:  Stable market value and modest income over short time periods.  Ideal for funds expecting substantial near-term payouts, either certain or possible.

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View most recent performance Investment Horizon Categories here

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Few community foundations have the breadth of financial experience and savvy offered by the Parasol Tahoe Community Foundation.  Our Investment Committee members are some of the most successful and experienced entrepreneurs in the financial world.  These volunteers direct Parasol’s investment philosophy, process and management, bringing a global perspective to the investment of community charitable assets.