Acef Continues to See Steady Growth

The Armenian Church Endowment Fund has continued to see steady growth throughout 2012, and remains at the heart of investment strategies for parishes across the Diocese. Thanks to its uninterrupted annual distribution, the fund helps parishes maintain vital programs that benefit ministry, youth and the elderly, as well as look forward to future projects.

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PRESS OFFICE

Diocese of the Armenian Church of America (Eastern)

630 Second Avenue, New York, NY 10016

Tel: (212) 686-0710; Fax: (212) 779-3558

E-mail: publicrelations@armeniandiocese.org

Website: www.armenianchurch-ed.net

April 29, 2013

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Acef Continues to See Steady Growth

The Armenian Church Endowment Fund has continued to see steady growth throughout 2012, and remains at the heart of investment strategies for parishes across the Diocese. Thanks to its uninterrupted annual distribution, the fund helps parishes maintain vital programs that benefit ministry, youth and the elderly, as well as look forward to future projects.

In 2012, ACEF achieved a return of 11.3 percent, making it possible to distribute 4.5 percent to its beneficiaries, and to reinvest the additional income. "We fully expect to be showing positive numbers to all our constituents," said ACEF board chair Bruce Ballard, who will present more detailed results at the Annual Diocesan Assembly in May.

The goal, Mr. Ballard said, is to achieve returns between 6 and 8 percent, and to continue distributing 4.5 percent annually (income above the 4.5 percent mark is reinvested). At the same time, the board hopes to attract new investors, giving the fund more investment opportunity while reducing overall investment risk.

For more than a year now, ACEF has been realigning its portfolio allocations to rely more on the strength of equity markets and less on government bonds, which haven't performed as well. In the long term, Mr. Ballard said, the realignment will allow ACEF to outpace inflation and to achieve more steady returns for investors.

Since 2010, the fund has risen from $50 million to close to $90 million. The growth is due in part to appreciation, and in part to an increased interest in investing with ACEF. Even in the current economic downturn, the community has continued to rely on ACEF to build endowments. 

The fund's transparency, low operating expenses, and professionalism have been a draw for Diocesan parishes and individuals interested in setting up endowments to finance youth programs, meet parish operating needs, and underwrite other community activities.

Last year, ACEF launched a newly designed website, www.acefinvest.org, as well as accompanying marketing materials to make the fund's work more accessible to investors. Visitors can learn how endowments work, read success stories about current endowments, and download brochures and other materials.

Established in 1974, ACEF is an independent non-profit that supports parishes and individuals that wish to create legacies through endowments; it helps maximize financial returns by investing as a community.

The board is comprised of highly skilled individuals from diverse backgrounds, that include investment professionals from large Wall Street financial institutions, hedge fund managers, lawyers, accountants, C-level corporate managers, and business owners, who donate their time to the oversight and development of the fund.

"We have all fronts represented, so we maintain a focused approach to the investment aspects of the funds to achieve the highest returns for the beneficiaries, as well as making sure we follow all the rules and regulations associated with being a non-profit entity," said Mr. Ballard.

Mr. Ballard joined the board six years ago, at the recommendation of a friend. After serving for a year as a general board member, he was elected treasurer in 2008, and became the chair last December, succeeding the board's long-serving leader, Mark Gabrellian.  

A member of St. Sahag and St. Mesrob Church in Wynnewood, Pa., Mr. Ballard has built a career in the hospitality and transportation industries. He is currently the chief financial officer of The Service Companies, a janitorial company that serves the hospitality industry. During his term at the helm of ACEF, he said he hopes to continue raising its profile and investing power.

"We have really moved the organization up in terms of its professionalism, its transparency, and its reach in the Armenian community," Mr. Ballard said. "We are making a positive influence."

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Photo attached: ACEF board members with Archbishop Khajag Barsamian at the Diocesan Center earlier this year.