|
|
 |
|
The Foundation’s investment program offers three fund options for churches and agencies with funds that can be invested for at least 3-5 years. In a addition, a short-term income fund is available, as is a one-year fixed-rate certificate through the Building Fund Trust.
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 principal 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 Growth Fund usually have a horizon of five years or more. The Risks inherent in the long term investment funds 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 diversified portfolios of stocks and bonds, such diversification does not eliminate all risks. There can be no assurance that a 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 Income Fund:
This fund is designed to provide an investment vehicle for shorter term funds seeking to earn a better rate than traditional savings account 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 are 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.
The Building Fund Trust accepts investments from Iowa United Methodist Individuals, Churches and Organizations which in turn is loaned to qualified Iowa United Methodist Churches or affiliated organizations for capital projects. The Trust offers excellent income for a one-year investment, but there is no opportunity for capital appreciation. That makes this fund a good option for short or intermediate term income needs or for a portion of endowment funds that help both the investing body and the wider Iowa United Methodist church community. Click here for current rates, offering circular, and loan applications.
|
|
