Investment Management

Investment Program

Under the supervision of the Investment Committee, the assets of the Community Foundation are pooled into a diversified investment portfolio. The Community Foundation’s primary investment goal for funds invested for the long-term is the generation of maximum long-term total return within levels of risk determined to be prudent by the Committee. Such investment is designed to achieve the total return necessary to preserve the principal of the funds after deductions for expenses, inflation, and the distributable amounts prescribed by the distribution policy of the Foundation. Ideally, the Committee seeks to achieve net returns greater than those of a composite benchmark comprised of those indices identified by the Committee as most appropriate for the portfolio.  Diversification of investments is one of the Committee’s primary strategies for fulfilling the Foundation’s responsibilities. Since the selection and weighting of asset classes is one of the main determinants of both investment return and volatility, the selection of those classes and the allocations among them are regularly and carefully considered and monitored by the Investment Committee.

Historically, the assets of the Baraga County Community Foundation have been under the Investment Management of the Superior National Bank & Trust Company of Hancock, Michigan.  The portfolio returns have commonly achieved net returns equal to or greater than those of a composite benchmark comprised of those indices identified by the Committee as most appropriate for the portfolio.

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Finance Committee  Mission Statement

The mission of the Finance Committee shall be to maximize safety and financial gain for the endowed assets of the Baraga County Community Foundation so as to provide funds to achieve improvement in the charitable, educational, cultural, recreational, environmental, and social welfare needs of the Baraga County area.

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Finance Committee Statement of Investment Objective

The Foundation’s investment priorities are, (1) protection and growth of principal and, (2) maximum income commensurate with safety of principal.

The investment objective of the Foundation is to achieve a maximum rate of return over time, through the investment in fixed income, equity securities and cash equivalents, taking into consideration safety of principal and income, account growth and liquidity needs for distribution requirements.

It is desired that a fiduciary adhere to the “prudent man” rule which requires the exercise of that degree of judgment and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with such matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds considering the probable income to be derived therefrom as well as the probable safety of their capital.

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Accounting 

The services of Garrow Accounting & Tax Service of Mohawk, Michigan have been secured by the BCCF to conduct all quarterly and State and Federal filings. The services of Rukkila, Negro & Associates CPAS PC of Houghton, Michigan have been contracted by the BCCF to conduct annual Audits and Audit Reviews

 

Making A Difference Since 1994