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ACLA Investment Policy Statement

I. Introduction

The Investment Policy Statement is a framework to guide investment decisions and asset allocation for the American Comparative Literature Association.

II. Roles and Responsibilities

The roles and responsibilities of the Finance Committee can be found in the ACLA bylaws, Article 8.4. Its responsibilities include financial oversight of the Association’s budget, including oversight of all income and expenditures; accounting oversight and coordination; and oversight of the Association’s investment and endowment portfolios. The Chair of the Finance Committee is also responsible for executing any changes to the investment portfolio that have been approved by the Finance Committee and by the Board.

III. Investment Objectives

The financial objectives are (1) long-term growth and capital preservation and (2) limited short-term spending for travel awards and prizes and other forms of financial support for members. To these ends, the ACLA may withdraw between 4% and 10% annually from its investments. The ACLA Board will review investment performance and vote on this withdrawal annually.

IV. Asset Allocation

Having assessed the degree of risk that the American Comparative Literature Association will tolerate, the Finance Committee has adopted the following long-term asset allocation policy.

Type                                                   Allowable Range

Global Equity                                     60-80%

High-quality Fixed Income                20-40%

 

V. Guidelines for Implementation

Screening

The ACLA will demonstrate a commitment to socially responsible investments with appropriate implementation of environmental, social and governance criteria.

Diversification and Asset Allocation                

Funds should be diversified by asset class, geography, and/or maturity (for fixed income).

Liquidity

In the event that the ACLA needs to access the investment funds, settlement will occur within two business days.

Investment Managers

The Finance Committee will manage the investments. The ACLA Board may, however, decide to hire a financial adviser or portfolio manager.

Investment Committee

The Finance Committee will serve as the investment committee, in consultation with the CAO and Secretary-Treasurer.

VI. Monitoring of Objectives and Results

Performance of the portfolio will be monitored quarterly and reports will be made by the Finance Committee Chair to the CAO and the Secretary-Treasurer. The CAO and the Finance Committee Chair will receive copies of monthly statements from Vanguard.

 

Last Updated: 19 January 2021