I have the audacity to believe that people everywhere can have three meals a day for their bodies, education and culture for their minds, and dignity, quality and freedom for their spirits.
– Martin Luther King, Jr.

Asset Allocations

In order to maximize rates of return and minimize volatility over time, asset diversification is crucial. Any asset allocation using a diversified group of asset classes requires professional researchers and analysts.

Our investment consultant, Hammond Associates, 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 their asset allocation recommendations, based on investors’ stated goals.

For investors of the United Methodist Foundation, Hammond Associates has developed three investment portfolios. All plans follow The United Methodist Church’s socially responsible investment guidelines. The portfolios are well diversified among 10 asset classes. The asset allocation varies based on the portfolio’s key objective:

1. Conservation Portfolio – Objective is to maximize current income
2. Moderate Portfolio – Objective is to balance long-term capital appreciation and current income
3. Aggressive Portfolio – Objective is to seek long-term appreciation

At the recommendation of Hammond Associates, the Foundation Board of Directors approved use of several additional asset classes effective June 1, 2008:

• International Emerging Market Stocks
• Global Fixed Income (Bonds)
• US Inflation Protected Securities (TIPS)
• Real Estate Investment Trusts (REIT)
• Energy Assets

Asset Allocation Models for UMF Investors