The majority of our endowed funds are pooled together and invested as a group. We use the "prudent investment rule" in all of our investment considerations. This strategy is based on the Total Return concept, which allows investment managers to focus on maximum total return from capital appreciation, dividends and interest.
ARCF’s long-term investment objective is an annualized rate of return of 8.7 percent net of investment fees. This objective is comprised of the annual spending rate plus inflation, administrative costs and a growth factor.
ARCF's Finance Committee, along with investment manager Mercer, develops investment objectives, policy and asset allocation, and selects managers appropriate for each asset class. Manager performance is then closely monitored on an ongoing basis.
In order to provide flexibility, ARCF has formed an alliance with American Funds to give our donors options and allow individual brokers to maintain an ongoing interest in the investment assets donated by their clients.
Our investment policy allows the use of Independent Investing Managers in certain instances. Contact Heather Larkin at hlarkin@arcf.org to learn more.