INVESTMENT OPTIONS

Silicon Valley Community Foundation offers an exceptional selection of investment pools to grow your funds and maximize your philanthropic effectiveness. The size of our assets under management enables us to structure highly diversified portfolios across a wide variety of investment strategies and at an extremely competitive cost. Our prominence plus the combined experience and expertise of the community foundation's investment committee and advisor provides the fund you advise with access to highly talented investment managers unavailable to most investors.

Investment pools are designed to meet a range of philanthropic goals and time horizons. Fund advisors may choose to allocate contributions to their fund to one or more of the investment pools; one or two pools is normally sufficient. The community foundation will maintain each fund's investment allocation through regular rebalancing. Fund advisors may change the investment allocation once per year or under extenuating circumstances such as a significant change in charitable goals or the fund's balance.

Long-Term Growth (75% Equity/25% Fixed Income)
The Long-Term Growth pool seeks maximum growth through a diversified portfolio of global stocks and bonds, with meaningful exposure to alternative investments designed to reduce volatility. (Alternative investments include private equity, real assets and hedge funds. These are included to enhance returns and dampen volatility due to their low correlation to changes in the market.) Average annual expected returns are 8% to 10% over full market cycles. Assets are exposed to market risks and may experience significant volatility and principal loss from year to year. This pool is appropriate for assets that will remain invested for at least seven years to benefit from long-term opportunities that can only be realized from a patient investment strategy. Investment fees on assets allocated to this pool are 0.69%.

Balanced (50% Equity/50% Fixed Income)
The Balanced pool is designed for growth at more moderate levels of risk through a diversified portfolio of global stocks and bonds and some exposure to alternative investments . Average annual expected returns are 7% to 8.4% over three to seven years. Assets are exposed to market risks and may experience principal loss from year to year. This pool is appropriate for assets that will remain invested for at least three years. Investment fees on assets allocated to this pool are 0.70%.

Short-Term (100% Fixed Income)
The Short-Term pool is designed to outperform money market returns and provide a high degree of liquidity for near term grant distributions by investing primarily in short and intermediate term bonds. Market values should be relatively stable from year to year, but may experience periodic declines. This pool is appropriate for assets that will remain invested for one year or more. Investment fees on assets allocated to this pool are 0.49%.

Grant Reserves (100% Stable Value)
The Grant Reserves pool is a temporary option providing stable value for assets earmarked for grants to be distributed within one year. Assets allocated to this pool do not accrue investment earnings and are not assessed investment fees or support fees. (Corporate advised funds follow a different fee schedule.)

Important Information

Future contributions to your fund will be invested according to the allocation specified when you establish the fund. Cash for grants will be liquidated weekly as needed from the most liquid (short-term) pool first. A small portion of each pool may be held in cash at all times to provide liquidity for grant distributions. Investment expenses are in addition to the administrative support fee charged by the community foundation.

Contact Silicon Valley Community Foundation at donate@siliconvalleycf.org or call 650.450.5444 for additional information regarding investment options or historical performance.

Silicon Valley Community Foundation is not engaged in rendering legal, financial, or tax advice. Please see the community foundation's materials on investment options, fees and minimums, and terms and conditions for more information. This publication is a service to provide general information. Please consult your financial or legal advisor.