Investment Policies and Description of Available Investment Pools

The Investment Committee of the Community Foundation monitors the performance of the Community Foundation’s investments and recommends changes and additions in its money managers. Performance evaluation of money managers is conducted biannually.

The Community Foundation’s primary investment goal is to generate maximum long term total return on its assets within prudent levels of risk. Investments are designed to achieve the total return (income plus capital change) necessary to preserve the principal of the funds after any additions and after deductions for expenses, inflation and distributions. The distribution policy of the Foundation is currently 5% of the average market value of the funds extending to a maximum of twenty trailing quarters. In addition, as a goal, the Committee seeks to achieve for its portfolios net returns greater than those of a composite benchmark comprised of those indices identified by the Committee as most appropriate.

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 primary 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.

Approximately 65% of the Community Foundation’s investments are in equities, the majority of which are diversified among large cap growth and large cap value investments, and a minority among both mid and small cap growth and value equities and international growth and value investments. Approximately 35% of funds are invested in short and medium term debt, money market instruments, cash and cash equivalents. In addition, regular rebalancing of each of the portfolios to roughly the proportion of equities and bonds determined by the Foundation’s investment policy insures against downside risks.

The following benchmark indexes are used in comparing performance within and among the Community Foundation’s managers: S&P 500; Wilshire 5000; EAFE; MSCI Emerging Markets; Lehman Brothers Mortgage Backed Index; Russell 1000 Growth, Russell 1000 Value, Russell 2500 Growth, Russell 2500 Value, Lehman Brothers Government/Credit/ Lehman Aggregate Bond Index; and the 90 day TBill, in addition to customized blends of these benchmarks reflective of the proportion of funds diversified.

Socially responsible investment options are offered by each of our money managers.

Current Money Managers (in alphabetical order):

The Community Foundation has established money management and custodial arrangements with the following investment firms:

The Average Portfolio Management fee is 55 basis points.

Enterprise Bank and Trust Company

a “manager of managers” which conducts its own investment performance oversight before a performance evaluation by the Community Foundation’s Investment Committee. The underlying investment vehicles used by Enterprise Bank and Trust Company include Community Foundation ownership of equities and bonds as well as positions in leading mutual funds based primarily on asset allocation and risk averse performance above standard benchmarks.

Moors and Cabot

manages a diversified portfolio of individual equities and bonds responsive to the Foundation’s investment policy.

Sullivan and Bille Group/Wealth Management Advisors

monitors a portfolio of mutual funds responsive to the Foundation’s investment policy.

UBS

a “manager of managers” conducts its own investment performance oversight before UBS performance evaluation by the Community Foundation’s Investment Committee. The underlying investment vehicles used by UBS are both internally and externally managed funds world-wide that specialize, separately, in small, mid and large cap growth; small, mid and large cap value, international funds, and bond and cash equivalent funds.

Other Investment Managers and Pools

Upon the approval of the Community Foundation, newly donated assets may be invested through an investment manager recommended by the donor. However, just as in the case of the above listed money managers, each investment manager serves at the pleasure of the Directors of the Community Foundation, and the performance of each is monitored to make sure that portfolio assets and returns are competitive with the Community Foundation’s other money managers and national performance benchmarks.

Spending Policy
January 23, 2006

The Foundation shall make distributions from the Fund in accordance with a "Spending Policy" adopted by the Board annually for component funds of the Foundation. The Spending Policy is designed to allow the funds to be invested on a "total return" basis to maintain and, if possible, increase the purchasing power of the funds, while at the same time providing a relatively steady and predictable level of funding for grantees. The Spending Policy in effect on the date hereof provides for the Foundation annually to spend 5% of the average value of the Fund, computed monthly. However, acting through its Board of Directors, the Foundation in the exercise of its discretion may adjust distribution percentages and amounts from time to time.

Variance Power Policy

The Foundation’s Board of Directors shall have the power to modify any restriction or condition on the distribution of funds for any specified charitable purposes or to specified organizations if in the sole judgment of the board such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment or inconsistent with the charitable mission of the Foundation.

Privacy Policy
Adopted October 20, 2003

At the Greater Lowell Community Foundation, maintaining the trust that you have placed in us is our highest priority. We have developed the following privacy policy regarding all information collected through any source or media to assure you that we have taken prudent measures to serve you to the best of our ability, while simultaneously safeguarding your personal information.

We will not sell your information.

We do not disclose nonpublic personal information about you to anyone for the purpose of marketing or soliciting products or services.

Your information is confidential.

Employees are required to hold all information in strict confidence and to maintain security procedures to prevent access to such information from unauthorized individuals.

We may disclose some or all of the nonpublic personal information to independent contractors and service providers, but only for the purposes of servicing and administering your activities with the Foundation. Our agreements with these service providers contain confidentiality provisions and restrictions on using this information for any other purposes. We may also disclose certain information as required under applicable law, for example, to government agencies.

We protect your information

We maintain practices to ensure the security and confidentiality of your personal information. We use passwords to protect databases and virus protection software.

Access to nonpublic personal information about you or your activities with the Foundation is restricted to employees, independent contractors, and/or service providers, who need to have access to that information to provide service or administration. We maintain physical, electronic, and procedural safeguards that guard your nonpublic personal information.