Investment Philosophy

The investment policy of the Homer Foundation is designed to ensure effective management of the Foundation’s assets in order to serve current needs and long term best interests of the southern Kenai Peninsula. The Homer Foundation assets are a collection of individual donations from private citizens and other organizations. The investment policy is primarily designed to provide sufficient annual income for the support of local charitable needs. A secondary emphasis of our policy is to grow the purchasing power of the principal in perpetuity. Policies are intended to provide guidelines, where necessary, for ensuring that the Portfolio’s investments are managed consistent with the short-term and long-term financial goals of the Foundation and the investment funds. At the same time, they are intended to provide for sufficient investment flexibility in the face of changes in capital market conditions and in the financial circumstances of the Institution. Our investment policy was developed with the long term interests of the community in mind, adheres to accepted investment principles, and reflects the mission of the Homer Foundation.

See our Annual Reports for current and past investment performance reports.

See our Articles & Bylaws – Current revision approved 1/27/10

  1. The Fund is to be invested with the objective of preserving the long-term, real purchasing power of assets while providing a relatively predictable and growing stream of annual distributions in support of the Institution.
  2. For the purpose of making distributions, the Fund shall make use of a total-return-based spending policy, meaning that it will fund distributions from net investment income, net realized capital gains, and proceeds from the sale of investments.
  3. The distribution of Fund assets will be permitted to the extent that such distributions do not exceed a level that would erode the Fund’s real assets over time. The Committee will seek to reduce the variability of annual Fund distributions by factoring past spending and Portfolio asset values into its current spending decisions.  The Committee will review its spending assumptions annually for the purpose of deciding whether any changes therein necessitate amending the Fund’s spending policy, its target asset allocation, or both.
  4. Periodic cash flow, either into or out of the Portfolio, will be used to better align the investment portfolio to the target asset allocation outlined in the asset allocation policy.