DOCUMENTS
Rockefeller Brothers Fund
Investment Policy Statement As approved March 12, 2014 PURPOSE The purpose of this policy is to guide the Rockefeller Brothers Fund ("the Fund") Board of Trustees, Investment Committee, and Investment Office (Perella Weinberg Partners) in effectively and prudently managing, monitoring, and evaluating the Fund's investment portfolio. The investment portfolio consists of all funds managed by the Investment Committee. DIVISION OF RESPONSIBILITIES Board of Trustees
ii. the possible effect of inflation or deflation; iii. the expected tax consequences, if any, of investment decisions or strategies; iv. the role that each investment or course of action plays within the Fund’s overall investment portfolio; v. the expected total return from income and the appreciation of investments; vi. other resources of the Fund’s; vii. the needs of the Fund’s and a given institutional fund to make distributions and to preserve capital; and viii. an asset’s special relationship or special value, if any, to the purpose of the Fund. RETURN OBJECTIVE
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Economic Conditions Statement The Mission of the Rockefeller Brothers Fund The Rockefeller Brothers Fund advances social change that contributes to a more just, sustainable, and peaceful world. Commitment to Balancing Financial Stewardship and Programmatic Interests The Rockefeller Brothers Fund’s lasting commitment to issues of global significance reflects the Rockefeller family’s philanthropic tradition. Since 1940, the Fund has made a long-term commitment to its mission and to its partnerships with grantees, peer foundations, and thought leaders in its efforts to achieve progress in its programmatic interests. The Fund is committed to balancing its financial stewardship responsibilities with its long-term commitment to advance social change that contributes to a more just, sustainable, and peaceful world. Because of the 2009 economic recession, the Fund’s endowment value fell to a low of approximately $609 million in early 2009. Although the portfolio has experienced market growth, uncertainty and volatility remain in the picture, creating exceptional challenges for the annual budget process. Each year, the Fund seeks to develop spending plans that balance fiscal responsibility and the critical needs of our programmatic interests. Economic downturns challenge both objectives. Given actual 2008 and 2009 portfolio performance, net of spending, the Fund experienced a significant decline in both its portfolio and, consequently, its payout requirements. For the years 2008 through 2012, the Fund exceeded the minimum I.R.S. distribution by approximately $45.3 million. Despite the ability to utilize these credits over a five-year period against future I.R.S. spending requirements, the RBF’s long-term philanthropic commitments compelled it to minimize reductions in its programmatic spending from 2009 through 2011. In anticipation of near-term budget pressures, continued market volatility, and eventual growth, RBF trustees and staff launched a process in 2011 to develop a shared vision of the relative scale of its programs at the end of this decade and a resource allocation plan to achieve it over the coming years. While not binding on the RBF’s future leadership, the shared vision on the relative scale of programs in 2020 is intended to aid priority setting and near-term resource allocation decisions related to spending rates, program budgets, staff, and other infrastructure investments. This 2020 vision supports the Fund’s commitment to maintaining its grants budget at a steady level with its programmatic spending of approximately $26 million, set in 2011. This decision to deploy its financial assets in excess of the payout rate mandated by the I.R.S. evidences the Fund’s long-term commitment to manage the delicate balance of sound financial responsibility with its long-term and critical programmatic engagement. Looking ahead, the Rockefeller Brothers Fund hopes to continue to balance its financial stewardship responsibilities with its long-term commitment to its grantmaking programs and to its grantees across the globe. |