JIB Presentation 2016 ppt FINAL

WELCOMECENTRAL INDIANA COMMUNITY FOUNDATION

JOINT INVESTMENT BOARD MEETINGMARCH 3, 2016

THE COMMUNITY WE’VE BECOME STARTED TAKING SHAPE A CENTURY AGO.

THE COMMUNITY WE’LL BE IN 100 YEARS STARTS WITH YOU.

THE COMMUNITY WE’VE BECOME STARTED TAKING SHAPE A CENTURY AGO:


A TEAM YOU CAN TRUST.

CICF JOINT INVESTMENT BOARD

• James Roederer• David Becker• David Knall• Marni McKinney• Jerry Semler• John Quinn

• Charles Sutphin• Gene Tanner • Jean Wojtowicz• Alan Levin • Jeff Thomasson

CICF 2015 JIB BOARD

Community leaders and financial experts who ensure investment strategy:

CICF INVESTMENT STAFFCICF 2015 JIB BOARD

• Jennifer Bartenbach, CFO• Jennifer Schrier, Director of Finance & Systems• Cathy Davis, Senior Accountant• Brenda Delaney, Controller

CAMBRIDGE ASSOCIATESCICF 2015 JIB BOARD

Manages 30% of all U.S. foundation assets and 70% of all U.S. higher education endowment assets; CICF’s consultant since June 2009.

• Natalie Eckford• Sharcus Steen• Jon Hansen• Carolyn Keating

2015: A MONUMENTAL YEAR.

MONEY IN, MONEY OUTCICF 2015 MILESTONES

$44,962,3752015 CONTRIBUTIONS IN: 2015 GRANTS OUT:

$42,877,962

IMPACT AREAS

HEALTH & HUMANSERVICES

EDUCATION

CIVIC & COMMUNITY

IMPROVEMENT

ARTS & CULTURE

ENVIRONMENT

35% 27% 20% 11% 8%

CICF 2015 MILESTONES

RECORD # OF GRANTS OUT: NONCOMPETITIVE

CICF 2015 MILESTONES

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2002 2008 2015

2,077

535

1,034

75% FROM DONOR ADVISED FUNDS

671.1 MM

592.6 MM

714.5 MM701.3 MM

517.3MM 469.2MM

565.0MM543.0MM

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Assets Managed Pool Assets

2015 PORTFOLIO RESULTS & STRATEGY

TOTAL ASSETS


2015 STRATEGY REVIEW• Stay the course• Seek more alpha and more premium through illiquidity• Cast a wider net• Be mindful of spending• Raise some cash (for spending in a tougher market environment, or

for market opportunities that arise in dislocation).

RESULTS: 2015 DIFFICULT FOR GLOBAL MARKETS


Note: Returns above include private equity valuations from Oct. 1, 2014 – Sept. 30, 2015

C|A Has Advised CICF For Just Over 6 Years

-0.9

5.9

7.1

5.2

-1.6

4.95.6

4.9

-4%

-2%

0%

2%

4%

6%

8%

2015 (1 Year) 3 Years 6 Years 10 Years

CICF Benchmark

STRATEGY REMINDER2015 PORTFOLIO RESULTS & STRATEGY

Goal

Role

Asset Classes

Public EquitiesU.S., non-U.S., emerging

Non-Marketable Alternatives (NMAA)Private equity & venture capital

Marketable Alternatives (MALT)Absolute return, long-short hedge funds

Fixed IncomeHigh quality, intermediate to long-term, non-callable bonds

Deflation Inflation

Real AssetsCommodities, real estate, oil & gas

Maximize return at an appropriate level of risk

Growth engineHedge against catastrophic

macroeconomic risk

Diversification

ASSET ALLOCATION2015 PORTFOLIO RESULTS & STRATEGY

Equity– U.S.:24.0%Equity– U.S.:17.1%

Equity– DevelopedMarkets(ex.U.S.):11.8%

Equity– EmergingMarkets:8.7%

MarketableAlternatives:20.1%

RealAssets:14.5%

PrivateEquity/VC:11.0%

FixedIncome:12.9%

U.S. Equity24% U.S. Equity

18%

Developed ex U.S. Equity16% Developed ex U.S.

Equity12%

Emerging Markets Equity6%

Emerging Markets Equity

8%

Marketable Alternatives

16%Marketable Alternatives

24%

Real Assets10%

Real Assets10%

Private Equity/ Venture Capital, 7%

Private Equity/ Venture Capital, 12%

Fixed Income19%

Fixed Income10%

Cash & Equivalents, 2%Cash & Equivalents, 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

June 2009 December 2015

ASSET ALLOCATION: GENERATE HIGHER RETURNS AT LOWER LEVEL RISK


Better return

Worse return

More riskLess risk

CICF

Benchmark

0.0

5.0

10.0

15.0

0.0 5.0 10.0 15.0

AA

CR

(%)

AnnualizedStandardDeviation(%)

Risk/Return Analysis (6 Years)


WILL OUR STRATEGY CHANGE?

NO.

TOUGH START: 2016 STOCKS SLOW AT YEAR’S START


Equity– U.S.:24.0%Equity– U.S.:17.1%

Equity– DevelopedMarkets(ex.U.S.):11.8%

Sources: Alerian, Barclays, Bloomberg L.P., Citigroup Global Markets, Dow Jones Indexes, EPRA, Federal Reserve, FTSE International Limited, MSCI Inc., National Association of Real Estate Investment Trusts, and Thomson Reuters Datastream. MSCI data provided "as is" without any express or implied warranties.Notes: All returns are total returns in local currency except commodities, gold, and natural resources equities, which are in US$ terms. Asset classes represented by: MSCI World Index ("World"), MSCI US Index ("US"), MSCI UK Index ("UK"), MSCI Europe ex UK Index ("Europe ex UK"), MSCI Japan Index ("Japan"), MSCI Emerging Markets Index ("Emerging Markets"), Alerian MLP Index ("MLP"), 80% Datastream World Oil & Gas Index and 20% Datastream World Mining ("N.R.E."), FTSE® EPRA/NAREIT Global Real Estate Index ("Global Listed RE"), Bloomberg Commodity TR Index ("Cmdty"), Gold Bullion Prices ("Gold"), United States Benchmark 10 Year Datastream Government Index ("10-Yr US Treasury"), Citigroup World Government Bond Index ("World Gvt Bonds"), Barclays US High-Yield Bond Index ("US HY Bonds"), and Barclays US Corporate Index ("US IG Credit"). Total returns for MSCI developed markets indexes are net of dividend taxes. Total returns for MSCI emerging markets indexes are gross of dividend taxes.

Global Asset Class PerformanceAs of February 29, 2016 • Local Currency

-6.9 -5.6-1.5

-8.9

-16.2

-5.1-11.5

-0.8-4.4 -3.3

16.0

5.0 3.2

-1.0

1.2

-20

-10

0

10

20

World US UK Europeex UK

Japan EmergingMarkets

MLP N.R.E. GlobalListed RE

Cmdty Gold 10-Yr USTreasury

WorldGvt Bonds

USHY Bonds

USIG Credit

YTD 2016 Returns (%)

2.1 0.7

-2.2

8.3 9.9

-5.4

-32.6-24.5

10.9

-24.7

-10.4

1.0 1.3

-4.5-0.9

-40

-30

-20

-10

0

10

20

World US UK Europeex UK

Japan EmergingMarkets

MLP N.R.E. GlobalListed RE

Cmdty Gold 10-Yr USTreasury

WorldGvt Bonds

USHY Bonds

USIG Credit

2015 Returns (%)

Equities Real Assets Fixed Income

CURRENT VALUATIONS2015 PORTFOLIO RESULTS & STRATEGY

Composite Normalized Price-Earnings Ratios by RegionAs of February 29, 2016

0

5

10

15

20

25

30

World US UK Europe ex UK Japan EM

12/31/2015 Composite Normalized P/E1/31/2016 Composite Normalized P/E

25th Percentile

90th Percentile

10th Percentile

75th Percentile

Median

ECONOMIC CROSSCURRENTS2015 PORTFOLIO RESULTS & STRATEGY

THE BRIGHT SIDEGrowth Stabilizing

Developed Markets Still 2/3 Of Global GDPWealth Transfer Supports Consumer/Services SectorsDefaults Remain Low And Focused In Commodities

More Importantly, Service Growth Remains Strong

CONCERNSSlowing Economic GrowthStruggling Emerging MarketsCommodity Price WeaknessWidening Credit SpreadsShrinking Global Trade


HOW DO PRIVATE INVESTMENTS PLAY A ROLE?

HOW A PRIVATE INVESTMENT FUND WORKS2015 PORTFOLIO RESULTS & STRATEGY

General Partner

Partnership

Fund Portfolio

Underlying CompaniesInvestors

Limited Partners


WHY INCLUDE PRIVATE INVESTMENTS?

HIGHLIGHTS:• Return enhancement• Diversification benefits• Exposure to new market/strategies• Potential for inflation sensitivity with

investment in hard assets

CONSIDERATIONS:• Higher illiquidity• Deferred return• Higher fees

Growth/Enhanced Returns Hybrid Inflation Sensitive

Venture Capital Infrastructure Agriculture/

TimberlandReal Estate NaturalResources

Target Returns >25% 15% 10% 8%

Private Equity

Special Situations/Distressed


CICF’S INVESTMENT PERFORMANCE

7.4

7.4

15.0

20.1

6.3

2.8

1.3

-3.5

-5% 0% 5% 10% 15% 20% 25%

Since Inception(August 2004)

10 Year

5 Year

3 Year

Natural Resources/ Real Estate Blend CICF

11.6

11.3

13.6

15.7

3.1

5.1

7.4

7.5

0% 5% 10% 15% 20%

Since Inception (Jan. 2000)

10 Year

5 Year

3 Year

MSCI ACWI CICF

+ 8.5% + 1.1%

Note: CICF performance represents IRRs as of 9/30/15. Public index performance represents time-weighted returns as of 9/30/15. Natural Resources / Real Estate Blend is 66% MSCI World Natural Resources Index/ 33% FTSE® NAREIT All Equity REITs Index.

CICF Private Equity, Venture Capital, and Distressed vs. Public Market

CICF Natural Resources and Real Estate vs. Public Market


CICF PORTFOLIO SAMPLING:

2015 CICF ACCOMPLISHMENTS

1. Inspiring Places2. Family Success3. College Readiness and Success


https://www.cicf.org/about-cicf/funds-and-foundations/legacy-fund-of-hamilton-county/


https://www.cicf.org/grantseekers/scholarships/


• City County Plaza re-design• 21C Museum and Hotel• 360 Market Square Luxury

Apartments• Downtown Transit Center• Cummins Inc. Global

Headquarters

THE COMMUNITY WE’VE BECOME STARTED TAKING SHAPE A CENTURY AGO.



https://www.bein2016.org/bff/

BeIN2016.org

JIB Presentation 2016 ppt FINAL

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