Financial Management
Last Updated (Monday, 19 July 2010 19:40) Written by Administrator Monday, 17 November 2008 19:11
In keeping with the permanent nature of endowment funds, Edmonton Community Foundation investment and disbursement practice reflects the long-term time horizon of our investments and the Foundation’s commitment to provide maximum benefits to our community, now and forever.
Investments are professionally managed, earning an annualized rate of return on investmentof 14.75% in 2009 net of average custodian and investment counsel fees (2008: -14.70%) and 7.96% since 1989 (gross of fees).
Disbursement Guidelines
By following a disciplined disbursement policy – disbursing 3.5% of the endowment fund values each year to charities – funds keep pace with inflation and can accommodate periodic weak investment performance. Over time, more support is provided to our community than if any higher percentage of fund value were disbursed.
Net earnings, in excess of the 3.5% disbursed and the administrative costs, are reinvested so the Foundation’s endowment funds and grants continue to grow year over year.
Administrative Costs
Net administration costs are kept at approximately 1% of the average market value of all funds.
