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.
2018-19 GCCT Board of Directors
Jack Purcell, Chair, Ridgemont Equity Partners
Joclyn Balanda, PNC Bank
Steve Boland, Bank of America
Sam Bowles, Threadridge Investment 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
Holly Welch Stubbing, Foundation For The Carolinas
Scott Sutton, Entergy
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.
The Greater Charlotte Cultural Trust establishes its spendable income rate to balance near-term spending requirements with the long-term preservation of capital in endowed or quasi-endowed funds.
In compliance with North Carolina law – and leveraging the financial expertise of the GCCT Board and Investment Consultant, Mercer – GCCT carefully considers several factors, including current and forecasted economic and market conditions, to determine its annual spendable income rate.
For 2019-2020 fiscal year, the spendable income rate is 4.5%. Your spendable amount is calculated by multiplying this rate by the average daily balance of your fund over the previous three calendar years or since fund inception (for funds less than three years old). Please note: As described in its fund agreement, a fund may have an alternative distribution plan or a different spendable income rate than listed above.
The GCCT Board reviews the spendable income rate annually.
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 an additional pooled option — the Bank Long-Term Growth (BAC/WFC) 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.
The Liquid Reserves Pool is 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.
The Low Duration Fixed Income Pool 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.
The Income & Growth Pool is 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.
Formerly known as "Moderate Growth." Name change effective June 1, 2018.
The Active Long-Term Growth Pool seeks long-term capital appreciation without exposure to hedge funds or private equity. It is invested in broad domestic and international large and small cap stocks in developed and emerging markets.
Formerly known as "Passive Diversified Growth." Name change effective June 1, 2018.
The Passive Long-Term Growth Pool offers a well-diversified investment option using low-cost ETFs. It is invested across a variety of Vanguard Exchange Traded Funds.
The Diversified Long-Term Growth Pool is the model endowment portfolio recommended by FFTC's Investment Committee for donors with long-term investment horizons. This portfolio is broadly diversified, offering domestic and international market exposure while investing in large cap and small cap securities in developed countries and emerging markets. The allocation includes alternative investments, hedge funds and private equity investments to improve the overall risk/return profile of the portfolio.
Due to the illiquid nature of some of the alternative investments, there are liquidity restrictions that will apply on these funds which may affect timing of grant requests. Restrictions on withdrawals apply depending upon the fund balance as follows: less than $1M - available within 90 days; $1M-$5M - 80% available within 90 days, remainder within one year; and greater than $5M - please contact your relationship manager.