U.P. Catholic Foundation Updates Asset Allocation

U.P. Catholic Foundation Updates Asset Allocation

Approximately every four years CapTrust prepares an asset allocation simulation for the Diocese of Marquette concerning our investments in the National Catholic Investment Pool (NCIP).  The U.P. Catholic Foundation (UPCF) also uses the NCIP. In Q1 2018 CapTrust completed an asset allocation simulation using five different allocations.  Foundation Treasurer, Timothy Thomas, worked with the Diocesan Spending Committee and with CapTrust to come up with the five different asset allocation scenarios that could be used for current investments.

“In talking with fiscal managers throughout the state of Michigan, I came to know that some foundations similar to the UPCF utilized a more “aggressive” asset allocation; therefore, I asked that some more aggressive asset allocation scenarios be utilized in the simulation prepared by CapTrust,” said Thomas.

After reviewing the simulation analysis, the Diocesan Spending Committee found an asset allocation that was within risk tolerance, but with a potential for larger returns than the allocation being utilized since the inception of the UPCF.  The Spending Committee recommended this asset allocation to the UPCF for consideration.  The UPCF Board agreed that this asset allocation was a good fit for the funds in the UPCF and approved a change in asset allocation.  Consequently, the asset allocation is in the process of changing in 2018.  See below for the change:

Current Asset Allocation Target
Equities: 60%
Fixed Income: 40%

Asset Allocation Target Going Forward
Equities: 65%
Fixed Income: 30%
Real Estate: 5%