The Columbus Foundation and Community Foundations, Inc.
Notice of 12(b)(1) fees
In the spirit of full disclosure,
please be informed that The
Columbus Foundation may
utilize mutual funds that
have as a part of their internal
fee structure a 12 (b)(1)
(sometimes called a trailer)
fee. These fees, which generally
average 25 basis points
or less (.25%), are paid by
the mutual fund company to
the financial advisor/broker
and/or brokerage firm having
investment oversight of
these Foundation assets.
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The corporate form of The Columbus Foundation was created in 1988 to give donors more flexibility in their investment choices. In addition, Community Foundations, Inc., was created in 1988 for the purpose of serving
areas beyond Franklin County and its adjacent counties. These corporate forms give the authority over investments and distributions to a single entity–the Foundation’s Board of Trustees.
The trust form, Columbus Foundation, is the original entity established in 1943 in which investment responsibility is placed with trust departments of organizations with trust powers in the state of Ohio. The Foundation’s Governing Committee sets policies, oversees grantmaking activities, and sets guidelines for the trustees to follow in their investment activities.
Investment Guidelines
The following investment allocation options are available:
- Unrestricted, Field of Interest, and Designated Funds Funds are invested with a 50 percent to 80 percent equity exposure.
- Scholarship and Organization Endowment Funds Funds are invested with a 30 percent to 60 percent exposure.
- Donor Advised Funds Funds are invested with either zero percent equity, 30 percent to 40 percent equity, 60 to 70 percent equity, or up to 100 percent equity exposure.
Investment Agents
The Governing Committee has approved the following investment agents to The Columbus Foundation funds.
Investment Agents
- Bank One Trust Company, NA
- Columbus Investment
- Advisory, Inc.
- Croghan Colonial Bank
- Delaware County Bank & Trust
- Diamond Hill Securities
- Edward Jones
- Fifth Third Bank
- First Manhattan Co.
- Hamilton Capital Management
- The Huntington National Bank
- KeyBank/McDonald
- Investments, Inc.
- Lincoln Financial Group/
- Steinhaus Financial Group
- Mellon Private Wealth
- Management
- Merrill Lynch
- Morgan Stanley
- National City Bank, Columbus
- Nationwide Securities, Inc.
- Park National Bank
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- UBS Financial Services, Inc.
In addition, gifts may be
transacted through the following brokerage firms:
- Banc One Securities Corporation
- Charles Schwab & Co., Inc.
Mutual Funds
- The American Funds Group
- The Vanguard Family of Funds
- Through approved brokers, other mutual fund families may be used
Bank/Trust Relationships Trustees
- Bank One Trust Company, NA
- The Huntington National Bank
- National City Bank, Columbus
- Key Bank
- Park National Bank
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Annual Fees
The annual compensation/fees vary by organization and/or investment vehicle but in general range as follows: Trust Banks:
61.5 to 78.0 basis points
Mutual Funds:
- Vanguard Family: 9 to 43 basis points
- American: 60 to 88 basis points
- Other investment agents: 80 to 160 basis points
Brokers And Other Professional Money Managers:
Organizations utilizing a "wrap fee" program generally have fee arrangements of 100 basis points or less.
Please feel free to contact The Columbus Foundation’s Donor Services and Development Department at 614/251-4000 with any questions. |