Traditionally, stocks, bonds and cash, cash equivalents, and property are the usual assets in a portfolio for an individual or foundation. Recently “alternative investments” were added to our portfolio. These are defined as any asset that doesn’t fall into the three previous categories. The objective is to lower risk and increase overall return. These assets have little relationship with the other investments and usually don’t follow the same cycle of returns as the more traditional investments. Some examples of alternative investments are commodity funds, real estate investment trusts, long/short funds, currency hedging, private equity and venture capital. The board, with the help of member and investment advisor, Mike Robe, decided that a 15 percent allocation would be our initial target. The investment committee periodically reviews these allocations and makes adjustments as needed. This is a new and potentially stabilizing tool that we hope will keep your foundation’s money safer and with more consistent returns, so that children’s charities and our Akron Rotary Camp can continue their fine work long after we are gone.

We will continue to try to keep the Club informed of any foundation news, but for more information, go to www.akronrotary.org 

Dan O'Connell
Investment Committee Chair ARF