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Fund Options
 

     There are five investment fund options available for your church or church-related institution. Each, have their own set of objectives and time horizon while allowing for varying risk tolerances. One common thread throughout all of our fund options is our focus on socially responsible investing.

The Conservative Fund
     Asset allocation for this fund is 30% equity and 70% fixed income. For the equity portion of this Fund the Evaluation Benchmark is the S&P 500. For the fixed income portion the Evaluation Benchmark consists of 30% Barclays Aggregate Bond Index, 5% Barclays U.S. Government Inflation-Linked Bond Index and 35% 3-month Treasury Bills. The fundamental investment objectives of this fund are to preserve both invested principal and earned interest while seeking to minimize the risk of loss of principal.

The Balanced Fund
     Asset allocation for this fund is 50% equity and 50% fixed income. Evaluation Benchmarks are comprised of 40% Russell 3000 and 10% MSCI EAFE for the equity portion. For the fixed income portion the Evaluation Benchmark consists of 41% Barclays Aggregate Bond Index, 8% Barclays U.S. Government Inflation-Linked Bond Index and 1% 3-month Treasury Bills. The investment objective of this fund is to provide investment income while seeking to grow principal over the long-term by investing in a balanced portfolio of both stocks and bonds.

The Diversified Fund
     Asset allocation for this fund is 70% equity and 30% fixed income. Evaluation Benchmarks for the equity portion are 55% Russell 3000 and 15% MSCI EAFE. Evaluation Benchmarks for the fixed portion are 24% Barclays Aggregate Bond Index, 5% Barclays U.S. Government Inflation-Linked Bond Index and 1% 3-month Treasury Bills. The objective of this fund is to attain current income and capital appreciation by investing in a broad mix of different types of investments with a long-term horizon. Investors should be willing to experience some fluctuations in the value of the fund, though not as much as from holding a fund comprised exclusively of common stocks.

All Equity Fund
     Asset Allocation for this fund is 65% US Large Cap equity, 15% US Small Cap equity and 20% International equity. Evaluation Benchmarks include 80% Russell 3000 and 20% MSCI EAFE. The primary objective of this fund is to attain long-term capital appreciation from a broadly diversified portfolio that includes both US and foreign common stocks. It is designed for investors who seek long-term investment growth through exposure to the broad U.S. stock market as well as regulated foreign stock exchanges and who are willing to accept the risk of possible wide fluctuations in the unit price of the fund.

Development Fund
     The Development Fund provides an investment alternative for those who are seeking the security of a fixed income type vehicle at competitive rates. It is an excellent option for investors who like to invest in certificate of deposits or money market funds. The Offering is available to individuals and church institutions but must reside in North or South Carolina. The Development Fund is the funding source of our Loan Program providing loans to United Methodist Churches and United Methodist institutions throughout North and South Carolina. Investment particulars include a minimum investment of $1,000 which is intended to be for a period of one year or more, however, investments are redeemable by the investors upon written request. The Development Fund's rate of interest is expected to be at least 2% below the rate of interest charged for the Loans Program which is adjusted quarterly, based in part, on market interest rates, changes in financial markets and the Foundation's intention to keep interest rates lower than rates available from commercial lenders. The Development Fund is not included in our Investment Policy Statement. Applicants must first obtain an Offering Circular by contacting the United Methodist Foundation.

Investment Policy Statement
The Foundation's fund options with equities exposure (Conservative Fund, Balanced Fund, Diversified Fund and All Equity Fund) are governed by an Investment Policy Statement (IPS) that was revised in November, 2015. To download a copy, click here.

 

 
 
United Methodist Foundation of Western North Carolina, Inc.
Address: 13816 Professional Center Drive, Suite 100 Huntersville, NC 28078   |   Phone: 704-817-3990   |   Fax: 980-422-0390
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