Investments
Investment Policy & Overview
Each year, investment policies are thoroughly
reviewed by the VCCF Investment Committee
and recommended changes are forwarded to
the Board of Directors. These policies outline
annual distribution amounts, investment goals,
long-term investment objectives, and asset
allocation targets.
Annual distribution policies are based upon a
total return strategy that is intended to
preserve long term capital appreciation. As
approved by the Board, the current annual
distribution is 5% of the total fund value, based
on a 12 quarter rolling average taken as of June
30th.
The investment goal is straightforward: to grow
the portfolio in real, inflation-adjusted terms in
order to meet annual fund distribution needs
while preserving and enhancing purchasing power.
For the long term, investment objectives
include:
- Providing for long term growth of the principal through diversification
- Achieving rates of return that are consistent with established risk levels
- Outperforming designated benchmarks
- Remaining in the top one-third of a peer group
- Hire quality managers and hold each accountable for actual and relative perfomance
- Manage diversification through asset allocation targets
Fees
Each fund at VCCF shares pro-rata the actual
costs of the investment process, consultants
and baseline fees, as each fund also shares
pro-rata the returns. At present, investment
fees are 0.87%; management fees are extra,
and are based on size and activity.
Investment Managers
The VCCF Investment Committee works with
a consultant to identify and hire top flight
managers who excel in their market segment.
Recent changes to the policy expand international
exposure and more alternative assets: absolute
return, private capital, target-specific specialty
managers. Changes to the asset allocation will
be made with significant additions to the pool
and through an annual rebalancing against
the targets approved by VCCF’s board.
Long Term
Performance
vs. Risk Adjusted
Benchmarks
Investment Results
VCCF is dedicated to the management of
its investment portfolio to achieve longterm
results. VCCF compares its results to
key benchmarks over a three-, five- and
10-year duration to measure and evaluate
performance over those periods. Our long
term performance has historically been well
above average.
For Information
Please contact VCCF at 805-988-0196 and
ask for Clare Brown, VP Controller or Hugh
Ralston, President & CEO.
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