Investment Information The Miami Foundation offers an exceptional selection of investment pools that you may choose from. Each pool is carefully constructed and diversified to meet a range of philanthropic goals and time horizons. These pools are overseen by our Finance Committee which is comprised of seasoned industry professionals. They hire, evaluate and work with two world-class Investment Consultants who ensure performance of the more than 30 independent Investment Managers. The committee also develops and ensures that The Miami Foundation adheres to a strict Investment Policy that keeps our investments targeted to achieving each pool s investment goals. Our Investment Consultants are SEI, for our permanent endowment Funds, and J.P. Morgan for our non-permanent Funds. Because your Fund is pooled with the more than $150 Million in assets under management, you will have access to greater diversification than would otherwise be possible. As a Fundholder, you may: Allocate to one or more investment pools; one or two pools is normally sufficient. Change the investment allocation once per year; or under extenuating circumstances such as a significant change in charitable goals or time horizon. Choose your own investment manager, when your Fund size is $1 million or more. SEI SEI is a leading global provider of investment management business solutions to foundations, endowments, healthcare organizations, corporations, private banks, and investment advisers with $428 billion in managed and administered assets as of December 31, 2011. They have more than 2,000 employees worldwide and operate from nearly 20 offices in a dozen countries. SEI s Institutional Group is the first and largest global provider of fiduciary management investment services. The company began offering these services in 1992 and today acts as a fiduciary manager to more than 450 institutional clients including 130 nonprofits. SEI provides a flexible model designed to help clients achieve financial goals through proactive asset allocation advice, investment management, risk monitoring and integrated goals-based reporting. SEI s investment philosophy follows a rigorous and disciplined approach including: Active Asset Allocation Active Portfolio Design Active Investment Manager Selection Active Portfolio Construction Active Risk Management 1
SEI s Fiduciary Management solution takes full responsibility and accountability for building investment portfolios and making changes as necessary. As one of the first and largest providers of fiduciary management solutions, SEI provides us with: A time-tested investment process of over 20 years Superior diversification and access to leading institutional managers in a cost-efficient model A single, robust platform that integrates assets, liabilities and enterprise finance Goals-based reporting and ongoing monitoring to help ensure the portfolio stays on track with its objectives Multi-level risk management and holdings-based stress testing that measures and monitors risk across the entire portfolio J.P. Morgan J.P. Morgan is a leader in financial services, offering solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. They have been helping clients conduct business and manage their wealth for more than 160 years under Mr. Morgan's core principle of putting clients' interests first. J.P. Morgan is part of JPMorgan Chase & Co. (NYSE: JPM), a global financial services firm with assets of $2.3 trillion, and a leader in asset management, investment banking, private banking, treasury and securities services and commercial banking. The company offers access to a world of opportunities, deep intellectual capital and centuries of experience helping to grow, manage and preserve wealth for clients and their families. 2
Asset Pool Allocations If your Fund will make grants in perpetuity - the Long-Term Growth Pool is the most broadly diversified. Long-Term Growth Pool managed by SEI Growth Assets 50-80 Domestic Securities US Large Cap Stocks Russell 1000 US Small/Mid Cap Stocks Russell 2500 US Small Cap Stocks Russell 2000 High Yield Fixed Income ML US High Yield International Securities International Large Cap Stocks Emerging Markets Stocks World Equity ex -US Emerging Market Debt MSCI EAFE MSCI Emerging Markets MSCI EAFE ex-us JPM EMBI Risk Reduction Assets 0-20 US Fixed Income Inflation Protection Fixed Income Barclays Aggregate Bond Barclays US TIPS Inflation Protection Assets 0-30 Diversified Hedge Funds 50/50 MSCI World/TB + 400 Structured Credit CS Leveraged Loan Real Estate Wilshire REIT Natural Resources S&P Natural Resources Commodities Dow Jones UBS Commodity Private/Illiquid Assets w/in the above 0-30 3
If your Fund will make grants from five to ten years - the Balanced Pool is designed for Funds that will be spent out in the intermediate term. Balanced Pool managed by J.P. Morgan Growth Assets 20-50 Domestic Equity US Large Cap Stocks Russell 1000 US Small/Mid Cap Stocks Russell 2500 US Small Cap Stocks Russell 2000 International Equity International Large Cap Stocks Emerging Markets Stocks World Equity Rick Reduction Assets 40-70 Core Fixed Income High Yield Bonds Emerging Market Debt Inflation Protection Fixed Income MSCI EAFE MSCI Emerging Markets MSCI World ex-us Barclays Aggregate Bond ML US High Yield JPM EMBI Barclays US TIPS Inflation Protection Assets 0-25 Diversified Hedge Funds 50/50 MSCI World/TB + 400 Structured Credit CS Leveraged Loan Real Estate Wilshire REIT Natural Resources S&P Natural Resources Commodities Dow Jones - UBS Commodity 4
If your Fund will make grants for one to three years -- the Capital Preservation Pool holds cash and money market securities. Capital Preservation Pool managed by J.P. Morgan Fixed Income 100 Core Fixed Income Inflation Protection Fixed Income Barclays Aggregate Bond Barclays US TIPS 5
If your Fund will make grants for one year or less the Cash Pool holds cash and cash equivalents. Your Fund will not earn interest. Cash Preservation Pool managed by J. P. Morgan Cash 100 6