London Community Foundation recognizes that each donation, no matter what size, reflects a trust in our ability to invest resources wisely. The Community Foundation maintains a long-term investment focus that balances security of capital, income, and growth with a moderate level of risk. The portfolio is diversified by specific security, investment management style, geography, and type of investment.

Financials

London Community Foundation currently administers over $45 million in philanthropic endowed assets, both for its own donors and for 23 other charitable organizations such as SARI Therapetic Riding, United Way of London & Middlesex, and Conservatory Canada.

• 2011 Audited Financial Statements
• 2010 Audited Financial Statements
• 2009 Audited Financial Statements

2011 Performance Highlights

Despite a difficult year in the global markets, 2011 was a time of growth for London Community Foundation. 

2011 has proven to be challenging and turbulent, marked by an earthquake and tsunami in Japan, uprisings in the Middle East and European debt concerns. Despite these events London Community Foundation was able to generate a positive return of 1.1%, thereby protecting the capital entrusted to us by generous donors and providing a steady income for community granting in 2012.

Through our Investment Committee, we continue stewardship of a growing endowment worth over $45 million.

In early March 2011 the Board of Directors approved a recommendation to amend the Foundation’s asset mix to include more U.S. and International equities. We believe the amended asset mix, combined with value added performance from our investment managers, will help to ensure future generations a healthy endowment fund with which to invest in the on-going vitality of the community.

As always, thank you to our donors, volunteers and community partners. Together, through the power of giving, we are creating a more vibrant and caring community by investing strategically in innovative community-based solutions. 

Facts & Figures

Current Asset Mix

The Foundation maintains a balanced investment porfolio. 

Investment Returns (2007 - 2011)

The Foundation's financial stewardship strategy looks at a long term horizon to ensure legacies created by donors are respected and grant-making continues in perpetuity. The 2011 return rate is 1.1% against the benchmark of 1.5%. 

Total Contributions

In 2011, the Foundation received $1,027,025 in new gifts. 4 new funds were established (2010: 4); the threshold for establishing a named fund begins at $5,000 and varies with fund type. 

Granting Activity

In 2011 we granted more than we received in donations. Total disbursements for charitable causes were $1.8M (2010: $1.1M). 318 grants supported 151 charitable organizations (2010: 252 supported 124).

Breakdown of Current Investment Portfolio

Canadian Fixed Income

The Canadian fixed income market as measured by the DEX Universe Bond Index produced an impressive return of 9.67% in 2011, while the Foundation’s fixed income portfolio slightly underperformed at 9.65%. The Foundation is invested in a passively managed bond index which tracks the DEX very closely.

Canadian Equity

During 2011, the Canadian equity portfolio provided a return of -5.8%, compared to the benchmark of -8.7%. Overall, the active Investment Manager provided a value add of 2.9%.  Market uncertainty kept a lid on stock prices despite solid corporate fundamentals that would have the opposite effect in a “normal environment”.

U.S Equity

The Foundation moved its U.S. equity mandate from an actively managed strategy to a passively managed Index fund which tracks the S&P 500 basis on a hedged basis. The combined return of the active and passive strategy provided a return of 1.8%. Despite the debt ceiling negotiations and election preparations, the US economy continues to exceed expectations. Jobs are being created, albeit slowly, and economic growth is slow, but better than predicted.   

International Equity

International equity performance resulted in a return of -7.7% vs. the benchmark of -10.0% resulting in a value add of 2.3%. The macro level issues surrounding European debt continue to drag on performance; however, the portfolio remains overweight in defensive sectors that tend to exhibit stable earnings and results. 
 

Investment Management

Responsibility for managing the London Community Foundation's investment portfolio is vested in the Board of Directors with the guidance of the Investment Committee. The Investment Committee works closely with professional staff and investment advisors to recommend policy, establish performance benchmarks, and monitor the performance of the London Community Foundation's investment portfolio.