ADK INVESTMENT COMMITTEE

Introduction:   ADK's Investment Committee manages our portfolios of long and intermediate term investments.   Currently they consist of a long term "Investment" Portfolio (holding our modest endowments), our Charitable Gift Annuity portfolio, and our intermediate term "Operations" portfolio.   The committee invests solely in mutual funds.   Each year a 4% portion of the Investment Portfolio is withdrawn and used to support ADK operations.   The Charitable Gift Annuity Portfolio makes periodic payments to ADK's annuitants.

Process: The Investment Committee meets twice a year (spring and fall) to review our portfolio and recommend any changes.   Currently these meetings are held on a Saturday morning between 10AM and noon at a location in Albany near to UAlbany.   All other communications are done by e-mail or phone.   ADK's Board of Directors has the fiduciary responsibility for establishing the overall level of risk to be assumed by the portfolio.   The Investment Committee often serves as the Board's proxy in making that determination. The Committee attempts to obtain the best return for the level of risk assumed.   In selecting the mutual funds to meet that goal we consider the criteria for each fund:

  • Historical Return
  • Standard Deviation of Return
  • Sharp Ratio
  • Correlation of return with the rest of the portfolio
  • Investment Strategy
  • Morningstar Investment Style
  • Manager Reputation
  • Expense Ratio
  • Appropriate Allocation

Each member of the committee, based on their experience, weights each factor as they see fit. Discussions are free flowing and consensus is usually obtained.

Appeal: If you are an experienced and astute investor who would be willing to contribute your talents to help ADK grow its investments, and if the above process resonates with you, then we would like to hear from you. If you might be willing to serve on the committee, please contact me at bobg@adk.org. If you include your phone number, I will be glad to call you to discuss the matter and answer your questions.

Bob Goodwin
Investment Committee Chair