The Foundation’s investment program offers three investment options for churches and agencies with funds that can be invested for at least 3 years. In addition, an ultra short-term bond fund is available for funds that may be needed in a shorter timeframe.
This fund is invested approximately two-thirds in bonds and one-third in stocks and real assets.
The Conservative Portfolio provides the lowest expected return and the lowest volatility of the three funds. It also generates the highest expected interest and dividend yield.
This fund maintains a reasonably traditional asset allocation, with approximately 60% invested in stocks and real assets and 40% in bonds. The portfolio offers a moderate expected return and moderate volatility. This is the Foundation’s most commonly used investment option.
This fund is about 85% invested in stocks and real assets and 15% in bonds. The Aggressive Portfolio provides the highest expected return but also the highest volatility. Its interest and dividend yield is relatively low.
Short Term Bond Fund
For funds available for shorter investment timeframes, the Foundation offers a short term bond fund. The goal of this fund is to offer yields in excess of verhicles such as certificates of deposit, with minimal investment risk. Read more
We retain a professional investment consultant, Mercer Investment Consulting, to ensure that all investments comply with our Investment Policy Statement. The investment consultant provides ongoing oversight of the Foundation’s investment fund managers. Mercer conducts ongoing market research and recommends an appropriate asset allocation to meet the objectives of each of our investment funds They make regular reports and recommendations to the Investment Committee of the Foundation Board of Directors. Mercer publishes a quarterly market research analysis and hosts a quarterly teleconference for its investors.The Foundation’s Investment Committee carefully studies and reviews these reports. and brings investment issues to the full board at each regular meeting.
Socially Responsible Investment Practices
The Foundation participates in socially responsible investing as defined by the Social Principles in the Book of Discipline of the United Methodist Church. Our fund managers do not invest in companies that have a significant interest in alcoholic beverages, tobacco, gambling, or conventional or nuclear weapons. Investments are also screened with regard to labor practices, human rights and environmental concerns. Our screens are developed with guidance from the socially responsible investing policies set forth by the General Board of Pension and Health Benefits.
For more details on our program, please contact us.