Ann Arbor Area Community Foundation

Investment Policy

AAACF's investment strategy is to invest for the long-termto provide long-term growth of our endowed funds, without undue exposure to risk.  AAACF looks to invest funds to produce a return over time that will protect and grow principal while generating annual income to cover grants, fees and surpass inflation.

AAACF works with a professional investment consultant to identify an optimal mix of different asset classes that together are likely to produce strong long-term rates of return while moderating the year-to-year variability of those returns. 

Investments are intended to remain in stocks, bonds, and alternative investments - with a limited investment in cash.

AAACF's assets are diversified to insure that negative results achieved by one asset class do not skew AAACF's entire portfolio.  AAACF's investment portfolio includes an intentional division of investments by type, characteristic, and numbers, as well as by styles of Investment Managers.

AAACF's Board recognizes that asset allocation decisions will be the single most important determinant of portfolio risk and returns. 
Our Board of Trustees sets long-term asset allocation ranges and reviews them periodically.  During the first quarter of each year, AAACF's Investment and Finance Committee reviews and assesses the allocation of assets to insure that AAACF's portfolio is allocated within policy guidelines.

For a copy of AAACF's Investment and Spending Policy or for more information, please contact AAACF Chief Financial Officer Jamie Hunter