The Music Center Foundation’s assets are managed in a diversified portfolio with a long-range focus. The investment objective of the Foundation is long-term growth with liquidity for annual distributions and expenses as well as flexibility for special distribution needs.
We target a return of 7.4%, which covers the 5% distribution, .5% for expenses, and 2% for inflation. Our performance over the past 25 years has been right on target.
(numbers in $MM)
The Foundation was initially funded with a $25,000 gift. Since 1995, the core endowment fund has grown by an average of 6.2% after making the 5% annual distributions to the Resident Companies and the Music Center. The Fund had a principal balance of $40 MM in 1995. During the next 23 years, the Foundation distributed over $100 MM back to the Music Center and Resident Companies and the principal balance has grown to $160 MM.
The portfolio is managed by a thirteen member Investment Committee with representatives from the Resident Companies and The Music Center. We are advised by Monticello Associates, an investment advisor with expertise in endowments and foundations.