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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
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).
In the event that the ACLA needs to access the investment funds, settlement will occur within two business days.
The Finance Committee will manage the investments. The ACLA Board may, however, decide to hire a financial adviser or portfolio manager.
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
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