Asset Allocation
In order to maximize rates of return and minimize volatility over time, asset diversification is crucial.
Our investment consultant, Mercer Investment Consulting, has a full time investment research department dedicated to ongoing research and monitoring of the investment climate, domestic and global markets and economies. They provide asset allocation recommendations to our Investment Committee, based on the Foundation’s Investment Policy Statement and goals.
For long-term (more than 3 years) investors, Mercer has developed three portfolios. All plans follow The United Methodist Church’s socially responsible investment guidelines. We take guidance from the General Board of Pension’s guidelines and social screening.The portfolios are well diversified among 10 asset classes. The asset allocation varies based on the portfolio’s key objective:
- Conservation Portfolio – Objective is to maximize current income
- Moderate Portfolio – Objective is to balance long-term capital appreciation and current income
- Aggressive Portfolio – Objective is to seek long-term appreciation
Approved Asset Classes
- Growth Assets: US Large, growth and quality stocks; international large and emerging market stocks
- Risk Reduction Assets: US and International Bonds
- Inflation Protected Assets: US inflation protected assets (TIPS), real estate, natural resources
For more information on our Investment Program, please contact us.
