The Catholic Foundation Inc., created in 1988 as an Ohio nonprofit corporation, is registered as a tax-exempt entity with the IRS under the U.S. Catholic Conference of Bishops group ruling and complies with canon law. The Foundation was established with the specific purpose of facilitating the investment of endowment funds for Catholic parishes, schools, cemeteries and agencies of the Diocese of Toledo. The Foundation Board of Trustees provides oversight of Funds held at a large regional bank.
• Embraces the mission of the Catholic Church through investment decisions
• Offers considerable flexibility in its investment and distribution policies
• Segregates parish assets from the Diocese
• Allows portfolio diversification
• Distributes income to parishes or schools for use in current operations as desired
The Catholic Foundation consults with numerous resources in an effort to create a well-diversified portfolio that optimizes potential return while limiting risk. The portfolio can be allocated as aggressively or conservatively as desired in accordance with your risk appetite and liquidity needs. Custodian and manager fees associated with this type of investment can be as low as 40 basis points, but no more than 70 basis points depending on its structure. Included in this document are examples of performance over the last 10 years based on sampled allocation decisions. Historical performance, while in no way indicative of future returns, is provided only as a guide to understanding asset diversification. The following is a brief introduction to the asset classes the Foundation has constructed in its portfolio.
The Catholic Foundation, Inc.
1933 Spielbusch Avenue
Toledo, Ohio 43604-5360
Foundation Advancement Officer
Large Cap Equity: Stock holdings of companies with a market capitalization between $10 billion and $200 billion.
Mid Cap Equity: Stock holdings of companies with a market capitalization between $2 billion and $10 billion.
Small Cap Equity: Refers to stocks with a relatively small market capitalization. Generally it is a company with a market capitalization of between $300 million and $2 billion.
International Equity: Stock holdings in companies in developed markets outside North America.
Fixed Income: A debt investment with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate.
Market Capitalization: A measurement of corporate size that refers to the current stock price times the number of outstanding shares.
Standard Deviation: Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. A large standard deviation implies that there have been large swings in the return series of the manager.
S&P 500 Index: This index consists of approximately 380 industrial, 40 utility, 10 transportation and 70 financial companies listed on the US market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding), calculated on a total return basis with dividend reinvested.
S&P 400 Index: The S&P MidCap 400 Index tracks a diverse basket of medium-sized U.S. firms. The stocks are chosen based on market capitalization, liquidity and industry representation.
Russell 2000 Index: The Russell 2000 is used to measure the performance of the 2000 smallest companies in the Russell 3000 index.
MSCI EAFE Index: A market capitalization-weighted index representing all of the MSCI developed markets outside North America. This index is created by aggregating the 20 different country indexes, all of which are created separately.
Lehman G/C Intermediate Index: All bonds by the Lehman Brothers Government/Corporate Bond index with maturities of one to 10 years..
* Annualized return information is calculated based on the data from October 1996 through September 2006.
** The blended benchmark return is comprised of S&P 500 index, S&P 400 index, Russell 2000 index, MSCI EAFE index, and the Lehman G/C Intermediate index.
An index is an imaginary portfolio of securities representing a particular market or a portion of it.
Each index has its own calculation methodology and is usually expressed in terms of a change from a base value.
It is not possible to invest in an index.
This information was prepared by or obtained from sources that the Diocese of Toledo believes to be reliable, but does not guarantee its accuracy. Past performance is not indicative of future results.
The following investment pools are offered by the Catholic Foundation. To learn more about our fund managers contact the Foundation office at 419.244.6711.
Quarterly Performance Summary