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.
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Fees
Fees for Investment Services
The Foundation uses the services of an Investment Consultant and Custodian, as well as eleven Investment Fund Managers. The services provided by these professionals include: 
- Investment management
- Securities transactions
- Custody of assets
- Performance reporting
- Asset allocation management
- Socially responsible screening
- Consultation with Board of Directors
Hammond Associates Institutional Fund Consultants, our Investment Consultant effective February 2008, has assisted in restructuring our Investment Program. They have developed investment options for investors, offering three asset allocation strategies, based on investment objectives: a Conservative Fund, a Moderate Fund and an Aggressive Fund
Hammond also recommended and the UMF Board approved a plan to use indexed funds in those asset classes that are considered efficient markets, especially domestic and international stocks. They further selected investment managers that will customize the chosen indexes to meet our socially responsible investment guidelines.
These investment strategies will result in a savings on fees for Foundation investors of 10 to 20 basis points (o.10% - 0.20%) compared to our previous program. Hammond charges a flat fee for its investment consulting services. They receive no compensation of any kind from investment managers.
In addition, performance data provided by Hammond Associates will be reported net of investment and consulting fees and compared to agreed-upon benchmarks. Previous performance data was reported gross of all fees.
The chart below provides a breakdown of annual fees for each fund. Fees are charged to investment accounts quarterly.
| Conservative Fund | Moderate fund | Aggressive Fund | |
|---|---|---|---|
| Investment Consulting Fee | 0.20% | 0.20% | 0.20% |
| Investment Manager Fees | 0.33% | 0.29% | 0.27% |
| UMF Administrative Fee | 0.50% | 0.50% | 0.50% |
| Annual Fee Totals | 1.03% | 0.99% | 0.97% |
The total annual fee for assets in the Money Market Fund is 0.5%.
Important Facts about the Foundation
The United Methodist Foundation of Northern Illinois Conference is a non-profit, 501(c)3 organization. The Foundation is a separate legal and reporting entity. We are one of many church-related agencies in the Northern Illinois Conference.
The Foundation receives no financial or administrative support from the Northern Illinois Annual Conference. The Foundation receives no apportionment funds from the Annual Conference.
Our operations are supported by individual contributions, earned income and administrative fees charged for the management and administration of church funds, annuities and trusts.
The Foundation monitors fees charged for these services to ensure that the charges are reasonable and competitive with fees charged for portfolios and funds of similar size and asset composition.
Copyright 2010 United Methodist Foundation of the Northern Illinois Conference, Inc. All Rights Reserved.
info@nicumf.org