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Investment strategy – Focus on diversity

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Diversification of assets and money managers are key strategies at big foundations, The Rocky Mountain News reported Feb. 25.

The James Irvine Foundation, which has seen its assets grow to $1.6 billion from $184 million in 1977, invests 60 percent to 80 percent of its assets in equities and 20 percent to 40 percent in treasuries and fixed-income products, said Dennis Collins, the foundation’s president.

Ten percent of the assets are invested in high-risk venture capital.

The $2.4 billion-asset Ewing Marion Kauffman Foundation in Kansas City, Mo., which has given away more than $600 million since 1993, uses 10 outside money managers, said CEO Louis Smith.

The foundation’s goal is to increase assets 10 percent to 12 percent a year.

And the Daniels Fund, which uses 25 investment managers, allocated 70 percent of its assets in equities and 30 percent in fixed income, said Richard Leaf, regional director at Russell Management Group in Tacoma, Wash.

The Denver-based Daniels Fund, created by the late cable mogul Bill Daniels, invests mainly in large-cap equities, with smaller stocks accounting for 12 percent to its stock investments.

The foundation expects a total return of 10 percent to 12 percent a year.

For full story, go to Rocky Mountain News.

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