The Advantage of Investing as a Community
How ACEF can help
ACEF aggregates individual endowment funds and invests them in a broadly diversified portfolio. With a multimillion-dollar portfolio, ACEF can take advantage of investment opportunities that are simply not available to smaller investors or individual parishes. This includes funds that are closed to smaller investors, as well as vehicles appropriate only for a large, highly diversified portfolio.
The principal of ACEF funds is not spent, and investment income is paid to the named beneficiaries at the designated rate of approximately 4.5% per year.
If investments generate more than 4.5% return, this extra income is reinvested. As the size of the investment increases over time, so does the total interest income paid to beneficiaries. By limiting distributions to 4.5%, ACEF also ensures that beneficiaries will receive a distribution in years when the financial markets are not doing well.
Philosophy And Strategy
ACEF receives expert advice
The ACEF board receives its investment advice from Cambridge Associates, a firm that specializes in working with nonprofits, including leading universities, major foundations, and a broad range of cultural and religious organizations.Â Cambridge Associates researches specialized investment opportunities, helps us balance our broad range of diversified investments, and constantly reviews the performance of the funds with which we invest.
Cambridge Associates does not buy or sell securities or profit from the tradesÂ of investment firms. Team members work with ACEF on a fee basis and function solely as expert advisors. All actual investment decisions are made by theÂ members of the ACEF board.
By working with an independent advisory firm, ACEF has been able to ensureÂ income, appreciation, and safety for our participants. And because of their extraordinary nonprofit expertise, Cambridge Associates can also monitor how ACEFâ€™s investment performance compares with that of other organizations.