The Greater Charlotte Cultural Trust
The Greater Charlotte Cultural Trust, formed in 2002 as a partnership between the Arts & Science Council and Foundation For The Carolinas, provides endowment fund management services for the Mecklenburg County cultural sector. GCCT is dedicated to growing and sustaining a vibrant cultural community in Charlotte-Mecklenburg by providing endowment management and oversight and investment expertise to build and grow permanent funds for the area’s arts, science and history organizations.
Board of Directors - The Greater Charlotte Cultural Trust’s board of directors is comprised of individuals who care about the life of the cultural community and have expertise in endowment management, investment, finance and legal-related areas. The board has direct oversight of two investment pools which are unique to GCCT and are managed by Wells Fargo and Bank of America. The board is responsible for monitoring performance, with the goal of achieving a return commensurate with the risk of the particular investment strategy.
2017-18 GCCT Board of Directors
Scott Sutton, Chair, Duke Energy
Joclyn Balanda, PNC Bank
Steve Boland, Bank of America
Sam Bowles, Minturn Partners
Robert Bush, Arts & Science Council
Caroline Dellinger, Program Management & Financial Professional
Bridget-Anne Hampden, JHR & Associates, LLC
Kelly Katterhagen, BlackArch Partners
Bob Lilien, Robinson Bradshaw & Hinson
Jack Purcell, Ridgemont Equity Partners
Holly Welch Stubbing, Foundation For The Carolinas
Investment Consultant – GCCT utilizes the services of the FFTC Investment Consultant (currently Mercer), which specializes in institutional funds and assists with consolidated reporting and oversight of all funds within GCCT.
FFTC Investment Staff – In addition to the Investment Consultant, FFTC’s internal staff includes investment professionals who further assist the board in monitoring all aspects of FFTC’s investment portfolios.
The Greater Charlotte Cultural Trust’s board of directors believes the most important investment decision is the asset allocation decision. Our approach to asset allocation is based on developing the appropriate mix of investments that address a portfolio's long-term growth while maintaining an acceptable level of risk and protection against inflation.
GCCT Investment Pools
When GCCT was established, the funds were originally invested with two major banks: First Union (now Wells Fargo) and Bank of America. To honor the legacy of the banks’ support of our cultural community, GCCT fundholders have two additional pooled options — the BAC/WFC Pool and the GCCT Pool — in addition to the investment pools offered by Foundation For The Carolinas.
Anticipated Distribution Horizon (in years)
Follows a broadly diversified investment strategy, with a predominately global equity and modest fixed income orientation, tactically layered by real assets and hedge funds. Seeks capital appreciation with a long-term investment horizon. The pool is managed 50% by Bank of America and 50% by Wells Fargo.
Follows the broadly diversified investment strategy of non-endowed long-term growth for 40% of the pool. The other 60% is equally split and managed by Bank of America and Wells Fargo.
Invested in the BlackRock TempFund, one of BlackRock’s Liquidity Funds. The fund seeks as high a level of current income as is consistent with liquidity and stability of principal. TempFund invests in a broad range of U.S. dollar denominated money market instruments.
Preserves capital while generating income. Investments are allocated across four fixed income managers – Sterling Capital Short Duration (40%), Doubleline Low Duration (35%), BlackRock Low Duration (15%) and Brown Brothers Harriman Limited Duration (10%). These managers invest across a variety of fixed income instruments with maturities generally less than five years - approximately three years on average.
Designed to yield consistent income and dividends while also achieving moderate capital appreciation. The portfolio is allocated 60% fixed income and 40% equity. The equity allocation includes domestic, international developed, and emerging market large and small cap equity securities. The fixed income allocation includes short and medium term fixed income securities with an aggregate maturity of six years.
Seeks long-term capital appreciation without exposure to hedge funds or private equity. Invested in broad domestic and international large and small cap stocks in developed and emerging markets. Target allocation is 25.5% global fixed income, 69.5% global equity and 5% real assets.
Offers a well-diversified investment option using low-cost ETFs. Invested across a variety of Vanguard Exchange Traded Funds, targeting 46% U.S. equity, 23% international developed equity, 14% U.S. fixed income, 7% international fixed income, 5% Real Estate Investment Trust and 5% Energy.
Broadly diversified allocation, offering domestic and international market exposure, investing in large cap and small cap securities in developed markets and emerging markets, with an allocation to hedge funds to improve the overall risk/return profile of the total portfolio. Target allocation is 17.2% global fixed income, 68% global equity, 5% real assets and 9.8% diversifying strategies.
Model endowment portfolio recommended by FFTC’s Investment Committee for endowed funds. Broadly diversified allocation, offering domestic and international market exposure, investing in large cap and small cap securities in developed countries and emerging markets with a greater allocation to alternative investments, split between hedge funds and private capital investments, to improve the overall risk/return profile of the total portfolio. Target allocation is 14.2% global fixed income, 62.9% global equity, 8% real assets and 14.9% diversifying strategies.