JCF Implements Investment Portfolio Adjustment
The Jewish Community Foundation, Inc. utilizes the investment firm SEI to manage our investment portfolio, and SEI subsequently works with the JCF's Investment Committee to ensure that our donor advised funds and endowment funds are properly managed.
Each quarter, SEI meets with the committee to review the portfolio and discuss any asset allocation changes that may benefit the long-term investment returns of the entire pool of funds.
To this end, as voted on at the most recent JCF Investment Committee meeting in April and subsequently approved by the JCF Board later that month, the JCF reallocated 3% of its portfolio to an alternative investment known as structured credit, effective July 1. In addition, the allocation to equities increased by 2%. Fixed income investments were reduced by 5%.
Per SEI, Structured Credit entails the following:
Investments consist of collateralized debt obligations (“CDOs”) and other structured credit investments. The portfolio will primarily invest in the equity and mezzanine debt securities of CDOs. CDOs involve special purpose investment vehicles formed to acquire and manage a pool of loans, bonds and/or other fixed income assets of various types. In addition to CDOs, the portfolio’s investments may include fixed income securities, loan participations, credit-linked notes, medium term notes, registered and unregistered investment companies or pooled investment vehicles, and derivative instruments, such as credit default swaps and total return swaps (collectively with CDOs, “Structured Credit Investments”).
Overall, structured credit provides more diversification and is designed to help increase the expected return of the portfolio over time, with only a modest increase in manager fees.
For any questions, please contact the JCF at 856-673-2528 or firstname.lastname@example.org.