Investment Philosophy

The investment philosophy of the Homer Foundation revolves around four principles:

• Protection of principal
• Growth of portfolio principal to at least match inflation
• Maximize income generation for the purpose of charitable distribution
• Provide portfolio diversification

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

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

This spending strategy reflects the income approach to distributing funds.

  1. The Homer Foundation recognizes the annual needs of the community, and will attempt to meet those needs through a mixture of earnings, pass-through grants, matching grants and appropriations from the Unrestricted Fund.  (The Unrestricted Fund is the only fund where the corpus may be distributed without extenuating circumstances.)
  2. The Homer Foundation shall annually forecast investment earnings and other income, and include the Homer Foundation’s share of those earnings in its annual operating budget.
  3. Income has been defined as the interest, dividends, net premiums from sale of covered call options that have expired, been exercised or closed through repurchase, and coupon discounts earned within the investment portfolios.
  4. All earnings for agency (non-profit) endowment funds shall be annually distributed at the close of the fiscal year.  Through written directive, the agency my request a cash distribution, or have their earnings rolled into the corpus of their fund.
  5. All earnings from advised and field-of-interest funds shall be distributed at least annually, through the Homer Foundation’s Distributions Committee.