Administrative Information

Release of legally required public information about CREATE (IRS 501(c)(3) acceptance letter, the last three years’ Forms 990 and 990-T minus donor identifications, the audit, the names of investment managers, fees charged (including investment and administrative fees), and the governing body or appointees responsible for investment and oversight) will be made when an individual specifically requests that information in person or in writing.

Investment Program

CREATE Foundation preserves and protects your investments and charitable intentions forever.  The unique power of endowments means that as your gifts grow, they continue to benefit the community now and in the future.  In order to accomplish this, the majority of CREATE Foundation’s endowed funds are pooled together and invested for the long-term.  The following provides a brief explanation about CREATE Foundation’s investment pool which includes investment strategy, asset allocation, investment funds, investment objective, spending policy, and investment performance.   

Strategy:

CREATE Foundation’s investment strategy seeks to preserve the value of the funds under management and to provide growth and income to support the charitable purposes for which the funds were created.  This strategy is based on the Total Return concept, which allows investment managers to focus on maximum total return from capital appreciation, dividends and interest.

Asset Allocation:

As seen in the tables below, CREATE Foundation has established a strategic asset allocation which seeks to diversify investments.  A large portion of CREATE Foundation’s endowment portfolio is invested in equities in order to achieve long term growth, and it is diversified among equity classes in order to minimize risk.  Risk is further minimized by investing a portion of CREATE Foundation’s portfolio in fixed income.

Asset Allocation

Equity (Stocks) Target  60%
Fixed Income (Bonds) Target  40%

Allocation Among Equity Classes

Domestic Large-Cap Equity Mutual Funds 30%
Domestic Mid-Cap Equity Mutual Funds  12%
Domestic Small-Cap Equity Mutual Funds 8%
International Equity Mutual Fund 10%

Investment Consultant and Mutual Funds:

The Endowment Fund is actively managed by using an asset allocation investment portfolio consisting of equity mutual funds, one fixed income mutual fund, one money market mutual fund, and individual fixed income securities.  A list of the mutual funds that comprise the asset allocation investment portfolio is provided below.

  • Investment Consultant:  BancorpSouth Bank, Trust & Asset Management, Tupelo, MS
  • Large-Cap Growth Equity Mutual Fund:  ABN AMRO / Montag & Caldwell Growth Fund
  • Large-Cap Value Equity Mutual Fund:  Dodge & Cox Stock Fund
  • Large-Cap Blend Equity Mutual Fund:  Vanguard 500 Index Fund
  • Mid-Cap Growth Equity Mutual Fund:  T. Rowe Price Mid-Cap Growth Fund
  • Mid-Cap Value Equity Mutual Fund:  Longleaf Partners Fund
  • Small-Cap Growth Equity Mutual Fund:  Vanguard Explorer Fund
  • Small-Cap Value Equity Mutual Fund:  Fidelity Low-Priced Stock Fund
  • International Equity Mutual Fund:  Vanguard International Growth Fund
  • Fixed Income Mutual Fund:  Vanguard Total Bond Index Fund
  • Money Market Mutual Fund:  Federated Government Obligations Fund
  • Custodian:  BancorpSouth Bank, Trust & Asset Management, Tupelo, MS

Investment Objective:

CREATE Foundation has established an investment objective of a return equal to or greater than 8%.

Spending Rate Policy:

The current spending rate policy provides an annual distribution of 5% of the calendar year-end market value.

Investment Performance of the Endowment Fund:

Annualized Rate of Return for Asset Allocation Portfolio
1994-2003

Objective

Actual

8.0%  Minimum

9.70%

                                                                    
213 West Main Street- Tupelo, MS 38802 - P: 662-844-8989 - F: 662-844-8149