Adams County Community Foundation Investment Policy Statement
Purpose (adopted 03.21.2025)
The purpose of this Investment Policy Statement (IPS) is to establish guidelines for the investable assets of the Adams County Community Foundation (ACCF). The IPS details the policies, procedures, asset allocation, and guidelines for each of ACCF’s investment portfolios and defines and assigns the responsibilities of all parties involved.
Investment Philosophy
- Endowment management must be a highly disciplined, well-monitored process.
- The design of the portfolio is based on a long-term view (intergenerational investment).
- Market timing and large volumes of trading and rebalancing activities are prohibited.
- Investment-related fees and expenses should be reasonable and competitive.
- A diverse allocation of assets is essential and will generate more consistent returns and protect from extreme market fluctuations.
- Global investing recognizes a global marketplace and helps to diversify allocations of assets.
Investment Objectives and Constraints
A. Target Rate of Return: Provide for an optimal level of total return, in real terms after inflation, and long-term growth of capital, subject to an acceptable level of risk.
B. Spending Target: Provide sufficient returns to support distributions for fund objectives and to meet ACCF’s budgeted organizational spending needs.
C. Structure: Invested funds shall be structured into two portfolios, Growth and Aggressive.
- Growth Portfolio: Goal is to grow purchasing power over time and produce a modest stream of income.
- Aggressive Portfolio: Goal is capital appreciation over a long time horizon.
Spending Policy
The ACCF spending policy seeks balance between yearly distributions and providing for continuity and growth.
Distribution Policy
ACCF establishes the distribution rate for endowed funds. The present annual distribution rate is 4.0%. The distribution rate will be reviewed annually by the Board of Directors.
Asset Allocation Guidelines
| Asset Class | Growth Portfolio (Min - Neutral - Max) | Aggressive Portfolio (Min - Neutral - Max) |
|---|---|---|
| Equities | 55.0% - 65.0% - 75.0% | 70.5% - 80.5% - 90.5% |
| Real Assets | 0.0% - 3.5% - 10.0% | 0.0% - 3.0% - 10.0% |
| Fixed Income | 21.5% - 29.5% - 37.5% | 7.0% - 14.5% - 22.0% |
| Cash | 0.0% - 2.0% - 10.0% | 0.0% - 2.0% - 10.0% |
Rebalancing
Shall take place if any asset class is outside the defined Asset Class Constraints or at least annually.
Uniform Prudent Management of Institutional Funds (UPMIFA)
ACCF operates under UPMIFA, ensuring prudent investment and spending decisions.
Description of Responsibilities
- Investment Committee: Accountable for adherence to investment policies and monitoring performance.
- Investment Manager: Actively manages fund portfolios per IPS guidelines.
Asset Class Definitions
A. Equities: U.S. Large Cap
- Eligible Securities: Publicly traded U.S. equity securities including common stocks and convertible preferred stocks.
- Benchmark: S&P 500 Index.
B. Equities: U.S. Small and Mid-Cap
- Eligible Securities: Publicly traded U.S. equity securities in the Russell 2500 benchmark.
- Benchmark: Russell 2500 Index.
C. Equities: International Equity
- Eligible Securities: Publicly traded equities in developed markets as defined by MSCI.
- Benchmark: MSCI EAFE Index (Net).
D. Equities: Emerging Markets Equity
- Eligible Securities: Publicly traded equities in emerging markets.
- Benchmark: MSCI Emerging Markets Index (Net).
E. Fixed Income: Investment Grade
- Eligible Securities: U.S. dollar-denominated investment-grade debt securities.
- Benchmark: Barclays U.S. Aggregate Bond Index.