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Investment Management

Fund for the 21st Century

When you establish a Donor Advised Fund at the Boston Foundation, your gift is typically invested in our Fund for the 21st Century. This Fund is broadly diversified across a number of asset classes. The guiding philosophy of the Fund’s management at all times is to promote the prudent stewardship of funds entrusted to the Boston Foundation for the benefit of the community of donors and charitable organizations we serve.

Within the Fund for the 21st Century, the Boston Foundation offers the following four separate investment options: the Balanced Plus Pool, the Balanced Pool, the Impact Pool and the Short-Term Pool. The four pools allow donors to select the option that best matches the time horizon and goals of their charitable giving plans.  Donors may also customize their asset allocation by investing among all the pools.

Click here to view our latest Investment Performance update

Click to learn more about the Impact Pool at the Boston Foundation

Click here to read the latest Boston Foundation Investment Policy

Balanced Plus Pool

Balanced Plus Asset Allocation
Balanced Plus Pool Allocation: June 30, 2020

This is our most diversified pool and is designed to produce the highest return of our investment options over the long term. Accordingly, the Boston Foundation invests its endowment, the Permanent Fund for Boston, in the Balanced Plus Pool which is managed by about 45 expert investment management firms. About 20% of the equity portion of the Balanced Plus Pool is allocated to private partnerships in private equity, venture capital and real estate. This asset mix is designed to produce the highest long-term investment return.

Asset Mix: 90% equity-type risk, 10% treasury securities.

Balanced Pool

Balanced Pool Asset Allocation
Balanced Pool Allocation: June 30, 2020

This pool is managed by about 30 expert investment-management firms. This asset allocation is expected to produce a slightly lower investment return than that of the Balanced Plus Pool due to the lack of investments in private partnerships. It may be most appropriate for those who want a higher allocation to fixed income investments and do not want exposure to illiquid private partnerships.

Asset Mix: 75% equity-type risk, 25% treasury securities

Impact Pool

Impact Pool Allocation
Impact Pool Allocation: June 30, 2020

Our newest offering, the Impact Pool seeks to support initiatives such as affordable housing, education and energy efficiency, with the goal of generating a positive social impact on a global scale and an eye toward supporting our local community. It also aims to lift up companies with strong corporate governance and shareholder advocacy while reducing exposure to those with high negative impact that may be associated with categories such as fossil fuels, alcohol, tobacco, gambling or weapon manufacturing. The Impact Pool offers a diversified investment approach.

Asset mix: 80% equity-type risk, 20% fixed income/money market

Short Term Pool

Short term pool allocation
Short Term Pool Asset Allocation

The Short-Term Pool is invested in U.S. Treasury bills. This option is appropriate for those who do not want equity- market exposure.

Asset Mix: 100% in U.S. government treasury bills.

The Boston Foundation Investment Committee

Andrew Arnott, Chair of Investment Committee
Term expires June 30, 2021*

Andrew G. Arnott is President and Chief Executive Officer of John Hancock Investments, a wealth management business of John Hancock Financial, the U.S. division of Toronto-based Manulife Financial Corporation.

Mr. Arnott brings a wealth of organizational and industry expertise to this role, including more than 20 years of experience in the asset management industry. Since 2012, he has led all aspects of John Hancock Investments’ business, from investments, sales, marketing, finance, and product development to operations and technology. Mr. Arnott is also President of the trusts for the John Hancock Group of Funds, with general responsibility for overseeing day-to-day management of fund business and operations, serving as Chief Executive Officer of all funds, acting as liaison between management and the funds’ Board of Trustees, and presiding over Trustee and shareholder meetings.

In his prior position as Executive Vice President and Chief Operating Officer of Investment Management Services, Mr. Arnott was responsible for all asset manager relationships across the John Hancock Investments and Manulife Financial platforms in the United States and Asia.

Mr. Arnott serves on the Board of Overseers for the Boys & Girls Clubs of Boston, the Board of Directors for the Boston Foundation, the Board of the Mt. Mansfield Winter Academy, and the ICI Board of Governors.

Paul Gannon
Term expires June 30, 2022

Paul Gannon

Paul Gannon is a retired Partner and Chief Operating Officer of The Baupost Group where he was also a member of the firm’s Management Committee.  Prior to joining Baupost in 1991, he served as the Chief Financial Officer for the Real Estate Group of Bank of Boston and was the VP of Finance for a chain of home centers. 

Mr. Gannon earned his CPA designation while working with Ernst and Whinney in Boston and Sydney, Australia, after graduating from the University of Virginia’s School of Commerce. 

Mr. Gannon is the Chair of the Board of Overseers for WBUR, serves on the Board of Advisors of The Baupost Group, as well as on the Board of Directors of Upstream USA, Opportunity Solutions International, the Boston Foundation, and Tenacity. He also serves as a Board Observer or mentor for a number of startup companies.

Ronald P. O'Hanley
Term expires June 30, 2024

Ron is chairman and chief executive officer of State Street Corporation. He is also a member of State Street Corporation’s Board of Directors. 

Ron was previously president and chief operating officer of State Street Corporation, and before that president and chief executive officer of  State Street Global Advisors, the investment management arm of State Street Corporation. He joined State Street in 2015. 

Prior to State Street, Ron was president of Asset Management & Corporate Services for Fidelity Investments, responsible for all Fidelity asset management organizations and Fidelity’s corporate functions and enterprise technology. He served at Fidelity from 2010 to 2014. 

Prior to joining Fidelity, Ron served as president and chief executive officer of BNY Mellon Asset Management in Boston, a position to which he was named in 2007. During this time, he also served as vice chairman of Bank of New York Mellon Corporation and was a member of its Executive Committee. Additionally, Ron oversaw all of Bank of New York Mellon's activities in Asia. Prior to the 2007 merger of Bank of New York and Mellon, he was vice chairman of Mellon Financial Corporation and president and chief executive officer of Mellon Asset Management. He served at Mellon and Bank of New York Mellon from 1997 to 2010. 

Prior to Mellon, Ron was with McKinsey & Company, Inc., from 1986 to 1997 and was elected a partner in 1992. He founded the Investment Management practice worldwide and was co-founder and co-leader of the firm's North American Personal Financial Services practice. Additionally, he was a member of the Worldwide Property & Casualty Insurance practice. During his tenure with McKinsey, Ron served in the firm’s Boston, New York, and Stockholm offices. 

Ron received his Bachelor of Arts degree in political science from Syracuse University in 1980 and his Master of Business Administration from Harvard Business School in 1986. 

Ron serves on the boards of Unum Corp. and Rhode Island Commerce Corporation. He also serves on the boards of Beth Israel Lahey Health, The Boston Foundation, IYRS School of Technology and Trades, Syracuse University and WBUR. Ron’s philanthropic and civic interests include corporate governance, retirement/healthcare policy and funding, education, and climate. He has led several initiatives on gender equality. Ron is a frequent speaker and writer, and an avid offshore sailboat racer.  

Grace Fey (ex officio)

Grace Fey, CFA, is President of Grace Fey Advisors. For 20 years, Ms. Fey was a partner at Frontier Capital Management Co., LLC, serving as Executive Vice President and Director of the investment management firm located in Boston, Massachusetts.

Ms. Fey currently serves as a Trustee of the John Hancock Financial Services Funds and is on the Board of Directors of the Fiduciary Trust Co., Tufts Medical Center, the Museum of Fine Arts and WGBH. Ms. Fey is the recipient of the David Knapp Award for Trusteeship from the New England Board of Higher Education and the Big Sister Association of Boston Leadership Award. She is a member of the Massachusetts Women’s Forum and the Boston Club.  Ms. Fey graduated from the University of Maryland with a B.A. in English and lives in Boston with her husband, Ted.

Ms. Fey served as Chair of the Investment Committee until the expiration of her term on the Board of Directors in June 2019.

Rick Burnes (ex officio)

Rick is Co-Founder and Partner Emeritus of Charles River Ventures, a venture capital firm dedicated to helping startups turn their ideas into real, viable businesses. His investments have focused mainly in the fields of communications and information services.

He served on the Boston Foundation Board of Directors from 2002 to 2012.

Paul S. Grogan (ex officio)

Paul S. Grogan was appointed President and CEO of the Boston Foundation, one of the nation’s oldest and largest community foundations, in 2001.  Under his leadership, the Foundation’s assets have doubled in size to more than $1.3 billion. In addition, grant making has soared to $150 million a year; in fact, $1.7 billion of the over $2.1 billion made in grants over the life of the Foundation were made during his tenure. The majority of these grants have benefited nonprofit organizations in Greater Boston.

Mr. Grogan also expanded the mission of the Boston Foundation to include a powerful civic leadership role. Through this work, the Foundation has commissioned and published cutting edge research into urban issues, held hundreds of public forums, formed task forces and coalitions, and informed and influenced legislative solutions to some of the city’s most intractable problems. Legislation passed through this work has leveraged more than $600 million in public funds for cultural facilities, K-12 public education, community colleges, municipal budgets and smart growth housing. The model created by Mr. Grogan has inspired a large number of community foundations nationwide to add civic leadership to their missions.

Prior to his work with the Boston Foundation, Mr. Grogan served as Vice President for Government, Community and Public Affairs at Harvard University and as a Senior Lecturer at Harvard Business School.  During his time at Harvard, he spearheaded efforts that led the university to make unprecedented investments in the community, including $21 million for affordable housing and $5 million for the Harvard After-School Initiative.  He also transformed the University’s previously poor relationship with the City of Boston, paving the way for Harvard to double its property holdings in the Allston neighborhood. 

Click here to read Paul's full bio.

George C. Wilson
Chief Investment Officer

George Wilson has been active in the investment field for more than thirty years. His career has included serving as a Senior Investment Officer at Pension Reserves Investment Management, the $50 billion Massachusetts public pension plan, with responsibility at various times for overseeing its real estate, REIT, timber, and private equity portfolios. He also was a Vice President for Asset Management with GE Capital Investment Advisors, Inc., a partner with the New Jersey based investment banking firm of Robert A. Stanger & Co., and a certified public accountant at Price Waterhouse.

George earned a BS in accounting and an MBA from Babson College, and a master’s degree in taxation from Bentley College.

 

Prime Buchholz
Investment Consultant

Prime Buchholz has served as an independent investment consultant for two decades, partnering with clients to create and extend their investment programs. It advises more than 260 institutional and private clients ranging from non-profits and corporate entities, to high net worth families. The company was founded in 1988 in Portsmouth, N.H., and today it employs over 100 investment professionals and support staff with offices in Portsmouth, Boston and Atlanta.

*Eligible for another five-year term.