Following their merger in 2010, The Community Foundation of Westmoreland County implemented the successful investment strategy of The Pittsburgh Foundation. In its perpetual portfolios CFWC, in alignment with TPF’s investment strategy, seeks to achieve a return equal to the target spending policy (currently 5%) plus an incremental return in excess of inflation – measured as the Consumer Price Index for Urban Consumers.
Additionally, CFWC seeks to avoid the pitfall of home country bias and looks to take advantage of the opportunities available to long time horizon investors. Moreover, the Foundation employs the well documented effects of diversification throughout its investment strategy.
Consequently, CFWC is invested in domestic, international and emerging market equities (both public and private). Equities are deemed to provide the best inflation adjusted growth component for CFWC. In an effort to reduce volatility of returns and provide a core inflation component, CFWC invests significantly in domestic fixed income assets including high yield and inflation protected bonds.
Finally, to capture the potential returns of uncorrelated assets which can also provide protection against inflation, CFWC, through the affiliation with The Pittsburgh Foundation, invests in real assets – both real estate and commodities – and hedge fund investments.
CFWC does not directly engage in the use of leverage or derivatives at the portfolio level, but will allow their use by managers who have a demonstrated skill in managing their implementation.
For more information on CFWC’s investment plan please click on the links below which link to The Pittsburgh Foundation’s Website.