The Arizona Community Foundation develops, implements and monitors prudent investment management of its capital market assets.
The Arizona Community Foundation’s primary investment objective is to prudently manage charitable assets to achieve positive, long term rates of return to support both growth and grantmaking. ACF’s investment beliefs and philosophy fundamentally drive our ability to meet this primary objective. Investments are diversified across various asset classes, mitigating risks that could disproportionally impact the Foundation’s combined portfolio performance.
The Arizona Community Foundation's Investment Policy Statement defines the investment programs to which it applies. The purpose of this Policy is to:
- Outline the objectives of the investment programs.
- Detail the Investment Beliefs that guide the investment strategy of the Foundation.
- Define the governance structure and delegation of roles and responsibilities.
- Define the target asset allocation and ranges around each asset class that reflect the desired risk/return posture of the investment programs.
- Outline broad guidelines for the selection of investment managers.
- Define eligible asset classes for investment.
- Define asset class constraints.
- Detail the Foundation’s spending policy.
Investment beliefs are a statement of the fundamentals upon which the design of the Arizona Community Foundation's investment programs is based. The asset allocation, investment structure and all other investment decisions originate from these beliefs, which are a product of careful analysis and the collective experiences and wisdom of the Investment Committee and the Chief Investment Officer.
Defining investment performance objectives, their time horizons and acceptable levels of risk are essential.
Asset allocations decisions are key.
Investment program portfolio construction methodology should be sound.
Asset classes should be examined in the context of market efficiency and its potential sources of return.
Asset class investment house views should be developed.
Portfolio rebalancing discipline is key for effective risk management.
Development of staff’s knowledge of investment management is beneficial.
Establishing and maintaining good governance is fundamental to the success of the investment management program.