Investment Funds

View Investment Funds in PDF format here.

The Foundation investment services exist to provide faithful, professional options for Iowa United Methodist Churches and related institutions in the stewardship of endowments and long-term funds. The Foundation’s investment program offers five fund options for churches and agencies to invest in. These funds can be used individually or in a custom allocation created to meet the needs of the account.

View Allocation of Funds in PDF format here.

Long/Intermediate Term Investment Funds

Balanced Fund: This fund uses a traditional asset allocation model with approximately 60% invested in equities and 40% in fixed income instruments such as bonds and U.S. government-backed securities. The Balanced Fund is designed to provide a moderate return with moderate volatility.

This fund is most appropriate for permanent and endowment funds intended to provide reasonable interest income for ministries and missions, while providing modest growth in principle to offset the effects of long-term inflation.

Bond Fund: This fund’s investments are in fixed income instruments. This fund provides the lowest expected total return but also has the lowest volatility of the three pooled investment funds.

The Bond Fund provides an investment option for churches and agencies needing opportunities for higher dividend and interest yield for their ministries and missions, with potential for some smaller growth in principle.

Equity Fund: This fund’s investments are in equities. The goal to provide potential high returns is accompanied by high volatility.

With the focus on asset growth, the income yield is relatively low. This fund is appropriate only when churches or agencies desire to position some of their endowment or reserve funds primarily for growth and have good tolerance for risk. Investments in the Equity Fund usually have a horizon of five years or more.

The Risks inherent in any long-term investment fund are the risks common to any security. The net asset value of the invested funds will fluctuate in response to changes in economic conditions, interest rates, and the market’s perception of the underlying value of the securities held by the fund. Although the funds seek to reduce risk by investing in high quality diversified portfolios of stocks and bonds, such diversification does not eliminate all risks. There can be no assurance that any Fund will be profitable or that clients will not suffer losses on their investments in the funds.

Click here for the Disclosure Statement which more fully describes the opportunities, risks, fees and administration of these funds. Or click here for a brochure of investment options.

Short-term Investment Funds

Short-Term Income Fund:

This fund is designed to provide an investment vehicle for shorter-term funds seeking to earn a better rate than traditional savings accounts or money market funds. This lower risk Fund is best used in situations where funds will be needed for ministries and missions within the near future. Withdrawals of interest and/or principal can be made quarterly.

Even though the Fund is designed to have a fairly low volatility rate, the net asset value of the Funds can fluctuate in response to changes in economic conditions, interest rates and the perceptions of the national securities markets of the underlying securities held by the Fund.

Click here for the Disclosure Statement which more fully describes the opportunities, risks, fees and administration of this fund.