GTCF Announces Vanguard as New Investment Manager

Today, Greater Tacoma Community Foundation (GTCF) announced Vanguard Institutional Investor Group as its new investment manager after a five-month, comprehensive review of the organization’s portfolio management and advisory services. GTCF’s Endowment and Annuity Investment Pools have been managed by Fund Evaluation Group (FEG) since 2011.

This change is the result of a thorough and diligent review of investment consultant proposals carried out by a sub-committee of the Investment Committee.

“After our extensive evaluation process and after talking with a number of other foundations across the country, it was clear that Vanguard was the best choice for helping us achieve our investment goals,” Kathi Littmann, GTCF President & CEO, said. “Both our Investment Committee and Board of Directors believe Vanguard offers a great mix of investment philosophy, cost efficiency and service that will enable us to help our fundholders best reach their philanthropic goals.”

Vanguard stood out due to a combination of:

• Exceptionally low fees;
• Strong performance history;
• Transparent portfolio construction and ongoing management;
• Expected service and administration quality;
• World-class reputation for putting investors first.

The changes in investment management apply to GTCF’s Endowment, Annuity and Short-Term Pools. The new Socially Responsive Investment (SRI) Pool will remain with Fund Evaluation Group (at least in the short term). “Our investments in FEG’s Private Opportunity Funds will remain as we have multi-year commitments to these funds,” said Mo Mousa, GTCF Vice President of Finance & Administration. “To streamline our investment efforts and reporting, Vanguard has agreed to provide oversight of these funds and integrate their performance into the overall endowment reports.”

The investment consultant review process began in May 2016, when a sub-committee of the Investment Committee identified 11 firms from whom to request information regarding their advisory services. Nine firms responded to the request and after studying the proposals the group identified five candidates to invite for on-site presentations.

On August 2, the sub-committee reconvened to review follow-up thoughts and discuss preferences. The three voting members of the sub-committee unanimously approved the recommendation of Vanguard. On August 8, the full Investment Committee unanimously approved the recommendation that was presented. Lastly, on August 24, the GTCF Board of Directors considered the recommendation and formally approved Vanguard as the organization’s new investment consultant.

For more information about GTCF, please review our Frequently Asked Questions Document or contact Barb Granger, Vice President of Philanthropic Services at [email protected] or 253.345.4170.