Managed Funds

Donors establish Managed Funds with the express purpose of achieving growth in the assets through active fund management by investing in stocks, bonds, and other assets. We will work with you and determine the best investment structure to achieve your long-term grant recommendation goals. Donors have two options when it comes to managed funds. The Generosity Trust can manage the funds or the donor’s personal financial advisor can manage the funds.

Option 1: Generosity Trust Managed Fund

You may choose to allow one of our equity managers to do the investing for you. Our current asset allocation on our long-term assets is 60% equity, 40% fixed income. This is a balanced portfolio that we trust will produce a quality return over the long term.

Option 2: Personal Financial Advisor Managed Fund

For larger assets you may choose to have your own investment adviser or money manager invest these funds in a separate account. In those cases, we allow you to determine the fee structure with your manager; we simply charge a floating fee, based upon the value of the assets, for the oversight of the fund and the investment reporting.

All managed funds have inherent risk, as with any assets actively managed in the equity and fixed income world. We carefully manage liquidity concerns in these funds to provide adequate cash for grant making purposes.

You may also have a combination of two or more types of funds seamlessly working together. Let us show you how. To begin the process of creating your own Giving Fund, click here or contact us at (423) 266-5257.