Turkish Philanthropy Funds takes great pride in providing clear, transparent information about our investment management and performance, our financial position, and our administrative fees.
How We Invest
Our board of directors has developed investment policies and guidelines that provide for prudent asset management. An Investment Committee, comprised of board members and volunteers knowledgeable in the investment field, oversees the investment activities of TPF.
Turkish Philanthropy Funds’ investment philosophy is to invest charitable funds prudently by taking balanced risks aligned with return objectives while the funds are being held for future distribution. TPFs investment portfolio is made up of diversified pools managed by specialized investment managers. The selection of an investment pool will vary depending on the timeframe for giving, level of diversification desired, and charitable goals of the donor.
Endowed funds are permanent funds invested for the long-term in a diversified portfolio of publicly traded stocks, bonds, real estate, private equity, hedge funds, and cash. Endowed funds are operated under a spending policy set by TPF and guided by the 2010 New York Prudent Management of Institutional Funds Act (“NYPMIFA”). Currently, up to 7% of an endowed fund’s value is available for distribution on an annual basis.
Nonendowed funds can also be invested for the long-term, but do not have a limitation on distributions and therefore are invested to provide greater flexibility in cash flow needs.
Investment Purpose And Goals
The Investment Committee implements a sound investment policy for TPF that results in suitable investments for each type of investment portfolio. A key goal is to try to achieve investment returns that are high enough to permit annual distributions from endowment funds while generating real, net of inflation results that will maintain the purchasing power of the underlying funds across generations. Accordingly, the Investment Committee has established the following return and risk parameters:
- Assets will be strategically allocated within asset classes and investment styles in order to enhance investment returns.
- The investment program’s assets are to be sufficiently diversified to reduce volatility.
- Diversification of assets may be achieved by:
- Allocating assets to multiple asset classes,
- Allocating assets among various investment styles, and
- Retaining multiple investment management firms with complementary investment philosophies, styles, and approaches.
- Earn long-term returns sufficient to exceed inflation and grant distributions.
- Earn returns that meet targeted performance benchmarks.
- Achieve these results while taking prudent levels of risk.
- Read our full investment brochure here.
A complete copy of our most recent Form 990 is available here. Or you can call us at 646.530.8988 and we will mail you a copy.