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.)

Additional Investment Options

The community foundation is pleased to offer the Social Impact pool for fund advisors seeking to double the social impact of their philanthropic contributions through both investments and grants. This pool invests in companies with strong financial and social records with the belief that a growing number of companies are finding that their environmental, governance and social attributes are providing a competitive advantage over their peers.

The Capital Preservation pool offers preservation of principal and investment earnings at institutional money market rates. Please note that these two pools cannot be mixed with the previous four pools listed.

Social Impact (70% Equity/30% Fixed Income)
The Social Impact pool seeks to achieve long-term growth through a diversified portfolio of global stocks and bonds from companies with strong financial and social records. Average annual expected returns are 7% to 9% over full market cycles of seven years or more. Managers consider a variety of positive and negative social factors when evaluating companies, including environmental sustainability, governance and ethics, human rights, animal testing, nuclear power production, involvement with gaming and the manufacture of weapons, tobacco and alcohol. This pool is appropriate for assets that will remain invested for seven years or more. Investment fees on assets allocated to this pool are 0.79%.

Capital Preservation (100% Money Market Securities)
The Capital Preservation pool is designed to preserve principal and provide liquidity through investments in bank CDs and institutional money market mutual funds that invest in low-risk, highly liquid, short-term financial instruments. It is appropriate for fund advisors seeking to avoid loss of capital or for assets to be distributed within a year. Investment fees on assets allocated to this pool are 0.13%.

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.