Performance of Your Investments
We are pleased to provide an interim report on the investment performance of Princeton’s charitable trusts and pooled income funds.
This report was developed to provide a timely update in addition to the annual reports. We expect that future reports and communications will evolve and we welcome your feedback and suggestions on ways to improve our communications.
If you have any questions or comments, please contact the Office of Gift Planning at 609-258-6318 or at firstname.lastname@example.org.
Management of Your Investments
Investment oversight is provided by a committee with representation by key offices of the University.
Taking the First Step
Princeton's professional gift planning staff can walk you through each step of the gift process, explain the administrative details, and help with paperwork. If you are considering making a gift, we recommend that you first consult with your lawyer. When you decide to make a gift, we can provide you with a draft gift agreement for your attorney’s review.
A committee with representation by key offices of the University sets the investment allocation formula for charitable trusts, and selects and evaluates external specialists to handle day-to-day investment decisions.
The asset allocation for the trust accounts is currently 85% equity (stocks and real estate) and 15% fixed income (bonds), with the goal of long-term growth of principal. Of course, investment performance is not guaranteed. Trust values may decline, resulting in lower payments for unitrust beneficiaries.
Grantham, Mayo, Van Otterloo & Co. LLC (GMO) continues to manage the charitable trust investment portfolio, except for the fixed income category.
Fixed Income Strategy
John W. Bristol & Co., Inc.manages the fixed income portion of all trust and pooled fund portfolios through its Core Fixed Income Strategy. The objective of this strategy is to maximize portfolio yield and total return relative to its benchmark (the Barclays Aggregate Bond Index).
GMO manages the bulk of the equity portion of Princeton’s Balanced and Tiger Funds. Both Princeton’s Balanced and Tiger Funds also invest in funds managed by The Vanguard Group. In the Balanced Fund, Vanguard’s Equity Income Fund adds to the dual goals of growth and income. Vanguard’s REIT Fund provides broad exposure to publicly traded real estate companies, which produces steady quarterly income to both Balanced Fund and Tiger Fund beneficiaries.
As with the charitable trusts, Bristol manages the fixed income portfolio for all three of Princeton’s pooled funds.
Each of the University's pooled funds maintains a distinct asset allocation:
Income Fund: Objective is to provide high current income.
Balanced Fund*: Objective is to provide a balance between long-term growth in unit values and corresponding growth in income over time.
Tiger Fund: Objective is to provide long-term growth in unit value resulting in higher income over the long term.
*The Balanced Fund is closed to new donors. However, as with the Tiger and Income Funds, additions to the Balanced Fund by existing donors are always welcome.