The Investment Committee — a Committee of the Foundation — has ably managed our assets for decades. Its members, without doubt, did not need any recognition for their excellent work. All they were likely concerned about was whether they were careful and responsible enough with all the assets and resources entrusted to their care.
According to David Hetherington, Chair of the Investment Committee, the Foundation's assets have grown from $2.8 million in 1989 to over $21 million. Over the same time, the Foundation has received donations of $3 million and has donated over $16 million. Amazingly, our volunteer investment managers have achieved a 10.5% average annual rate of return. Such growth is astonishing for a fund managed with a conservative investment strategy which requires investment mainly in safer instruments.
We have to thank our past and present Investment Committees for these outstanding results.
We never paid our investment managers for their valuable time and investment expertise. In addition, we received the generous support of Research Capital and its predecessor firms, which acted as custodians of securities but did not charge a fee for the service. Research Capital also facilitated our trades in securities and only charged nominal fees for our transactions.
The history of Research Capital stretches nearly as far back as that of our Club. Many of our Club members, including Club Presidents, have come from this firm. The people from Research Capital have left an incredible legacy.
The Investment Committee and our fund management have undergone significant changes in the past year. We made the changes in response to stricter compliance rules in the financial services industry. These rules made it difficult for employees to act in investment advisory roles outside their firms. As a result, it became challenging to get people to qualify for the Investment Committee. Moreover, a few Committee members had to leave to comply with their firms' new requirements.
About a year ago, the Foundation sent out an RFP for outsourcing investment management. After a careful review, we selected Nexus Investment Management as our investment counsel. The investment philosophy of Nexus aligns with ours. They manage their funds conservatively, and their investment results are similar to ours. So, we thought Nexus was a good fit for us.
As a result of this change, the Investment Committee no longer manages our Foundation assets. Instead, it has assumed an oversight role and will monitor the performance of our fund. This change also means that we will pay fees to Nexus for investment management and RBC Investor & Treasury Services for custodial services.
We have outsourced investment management to ensure that our Foundation maintains its vitality and builds on its legacy. Our assets will grow, and we will continue to provide warm clothing to the homeless and bring disabled children to Christmas parties. We will continue helping all those in Toronto who need a better life, regardless of race, colour or creed.
"The Foundation is the backbone of what we are doing to have an impact on the community," said Brian. "These people deserve high praise." I can't agree more, Brian. I admire the vision, devotion and expertise of our past and present Club members who started our Foundation or helped it grow and have an impact over the last 70 years.
Cost is only $10!
