Investment Disclosure Statement

For Management of Agency Funds
July 2025

 About Agency Funds

The Catholic Community Foundation of Minnesota (“CCF”) was established to support financially the spiritual, educational, and social needs of our Catholic community. As part of that mission, the Foundation manages investment accounts in an agency relationship, called Agency Funds, for the investing organizations.

An Agency Fund at the Catholic Community Foundation includes the following features:

  • The investing organization retains ownership of the assets in the Agency Fund.
  • CCF holds title to the specific investments in the Agency Fund in its capacity as agent for the investing organization.
  • Agency Funds may be co-mingled in investment pools, including with the assets owned by the Foundation.
  • The investing organization may deposit and, subject to the terms of the Agency Agreement, withdraw assets at will, and may exit the fund relationship at will.
  • Assets are invested in the Foundation’s Catholic-screened, investment pools as selected by the investing organization.
  • All investing organizations are charged an administrative fee based on the size of the relationship. All direct investment expenses are charged back to the appropriate investment pool.

About the Foundation’s Investment Pools

Decisions about the investment strategies and implementation of those strategies in the Foundation’s Investment Pools are made by the Investment Committee of the Foundation’s Board of Directors. Investment decisions are guided by the Foundation’s Investment Policy Statement (a copy of which may be requested by contacting us at our contact information below).

Information about the Foundation’s investment practices, investment performance, leadership, investment oversight, and administrative and investment management fees can be found at www.ccf-mn.org. You may also contact us at info@ccf-mn.org or 651-389-0300.

The Foundation’s Investment Pools are not insured by the Federal Deposit Insurance Corporation (FDIC) nor are they protected by the Securities Investor Protection Corporation (SPIC). The Foundation has no related party transactions in its Investment Pools.

The Foundation’s Investment Pools are subject to all risks related to investing in securities as described in greater detail below. The Foundation’s Investment Pools maintain a balance of capital appreciation, income generating, and inflation hedge assets pursuant to the asset allocation established by the Investment Committee and further described in the Investment Policy Statement.

Capital appreciation assets consist primarily of domestic and international equity, hedged equity, and private equity investments. Income hedge investments consist of primarily publicly traded fixed income, absolute return hedge funds, and distressed/private debt investments. Inflation hedge investments consist primarily of public and private real estate, natural resource, and commodity investments.

Risk Factors

The Foundation’s Investment Pools utilize a variety of investment strategies that present different risks that may negatively impact its investments. The Performance metrics provided on our website describe in percentages how investments are allocated by the types of securities that make up the investment portfolios, including U.S. and foreign equities, hedge funds, private equity funds, fixed income, real assets and investments in foreign markets. Investments in these types of securities may present Risk Factors
such as:

Equities Securities Risk: Investing in publicly traded companies, otherwise known as equity investments, is subject to certain risks including market, sector, industry and capitalization risk. For example, market or economic factors affecting a particular industry or industry sector could have a major effect on the value of a portfolio’s investments. Short-term trading strategies seek opportunistic gains through arbitrage, market fluctuation or market-moving events. These strategies are speculative and entail risk.

Hedge Fund Risk: Hedge funds are actively managed, unregistered private investment funds that invest or trade in many different markets, strategies and instruments (including public and private securities and derivatives) and are not subject to the same regulatory requirements as mutual funds. Fund of funds provide ease of diversification but also include a second layer of management fees. Investing in hedge funds involves significant risks, including loss of all or a substantial portion of the investment due to concentrated positions, leverage, poor liquidity, short-selling or other practices.

There can be no assurances that an investment objective of a hedge fund will be achieved or that its investment program will be successful. Hedge funds are illiquid, as there is no secondary market for such interests and none is expected to develop.

Private Equity Fund Risk: Private equity funds are portfolios of actively managed capital that invest in private and public companies through various strategies including venture capital, leveraged buyouts, special situations and others. Investments in private equity are intended to generate high returns relative to public markets through the purchase, value creation and sale of companies, which is inherently speculative. There can be no assurance that investors will receive distributions in an amount equal to their investment.

Fixed Income Risk: Investing in bonds, otherwise known as fixed-income securities, is subject to certain risks including credit, inflation and market risk as well as interest-rate and issuer risk. Changes in interest rates will affect the value of a pool’s investments in fixed-income securities. When interest rates rise, the value of a pool’s investments tends to fall. Interest rate risk is generally greater for those pools that invest in fixed-income securities with longer maturities or durations. The value of an equity or fixed-income investment may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Real Assets Risk: Investment in real assets such as real estate, energy, timber and commodities are intended to provide protection against unanticipated increases in inflation with the potential also to enhance returns. Investments in real estate and other real assets through an actively managed fund or fund of funds involve a high degree of risk. The economic success of an investment depends upon the successful acquisition, management, operation and disposition by the fund manager. There can be no assurance that fund managers will be able to locate and complete attractive investments. Risks associated with private real assets and publicly traded commodities include, but are not limited to, those associated with debt and leverage, illiquidity, adverse changes in general economic or local market conditions and changes in laws or regulations

Foreign Issued Securities Risk: Nationalization, expropriation or confiscatory taxation, currency blockage, and political changes or diplomatic developments could adversely affect a pool’s investments in a country other than the United States. To the extent a pool invests in a particular country or geographic region, the pool may have more significant risk due to market changes or other factors affecting that country or region, including political instability and unpredictable economic conditions. Companies with a significant business presence in developing economies have to manage additional risks. Securities issued by such companies may be subject to market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. Another Risk Factor specific to international investments include changes in foreign currency exchange rates which may negatively affect the value of a pool’s investments or reduce the returns of a pool. For example, the value of a pool’s investments in foreign stocks or currencies may decrease if during the investment period the U.S. dollar is gaining value relative to other currencies and other currencies are losing value relative to the U.S. dollar.

Faith-Consistent Investments: Faith-aligned investment strategies used by our investment managers may inhibit participating in certain investment opportunities that otherwise would be consistent with the investment manager’s objective and other index investment strategies.

No Federal Oversight of Investments Accounts

The Agency Funds held at the Foundation are exempt from the registration requirements of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934 and the comparable state securities laws. These exemptions arise out of the Philanthropy Protection Act of 1995. As a result, investing organizations will not be afforded the protections under those securities laws, including that there is no governmental monitoring or oversight over the Agency Funds. The Foundation does, however, remain subject to the anti-fraud provisions of federal and state securities laws.

Filings and Information

To request a copy of our Investment Policy Statement, contact the Foundation.

Questions

For more information about the Catholic Community Foundation, including copies of our current Investment Policy statement, please contact us at info@ccf-mn.org or 651-389-0300.