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Pooled Investment Funds
The Foundation runs several Pooled Funds for church investments. A Pooled Fund is very similar to a mutual fund, but its is privately created for a select group of investors. In this case the Foundation's Pooled Funds are only open to United Methodist churches and related agencies. The Pooled Funds run by the Foundation include the Fixed Asset Allocation Fund, Short Term Investment Fund, Core Equity Fund, Growth Equity Fund and the Bond Fund.
Fixed Asset Allocation Fund
This fund is primarily designed for churches investing between $5,000 and $150,000. The fund maintains an asset allocation of 50% stock and 50% bonds. With this allocation the fund is expected to return, on average, 9% a year, over a 4-5 year period. Approximately 4% of the return will come from interest and dividend payments and the remainder from appreciation. While this is a moderate risk portfolio, the fund will fluctuate in value as there are broad moves in both the stock and bond markets. Investments in the fund are not protected against loss due to market movements. Distributions or withdrawals can be made at the end of each calendar quarter. Statements are also mailed quarterly.
Short Term Investment Fund
This is a conservative short term bond fund designed to offer yields better than 2 year CDs. The fund owns only bonds and short term money market investments. Yields will fluctuate monthly. Unlike a CD, the fund is not principal protected and there may be small movements in principal value as the bond market moves. There are no stock holdings in this fund. Distributions or withdrawals can be made at the end of each calendar quarter. Statements are also mailed quarterly. The minimum investment in this fund is $5,000.
Core Equity Fund
This fund is designed to hold very large capitalization stocks (blue-chip) which produce a blend of both dividend income and appreciation. The fund's objective is to provide stable returns, matching or exceeding the S&P 500 Index, but with only moderate levels of risk. While this is a conservative equity fund, the fund will move up and down in conjunction with broad stock market movements. The fund holds 50-60 stocks and is actively managed by Brown Brothers Harriman, a Philadelphia investment firm. The fund also maintains a sector neutral bias, whereby the percentage of investment in an industry sector in the fund will match the percentage of investment in the same industry sector in the S&P 500 Index within an allowance of +/-5%. A church investing in this fund should have a minimum of $150,000 invested across a combination of the Core Equity Fund, Growth Equity Fund and Bond Fund. Distributions of income and withdrawals can be made at the end of each month.
Growth Equity Fund
This fund holds large capitalization stocks which produce primarily appreciation but may also have some limited dividend income. The fund's objective is to provide stable returns, matching or exceeding the S&P 500 Index, with moderately aggressive levels of risk. The fund will move up and down in conjunction with broad stock market movements. The fund holds 50-60 stocks and is actively managed by Fulton Financial Advisors, a Lancaster based investment firm. The fund also maintains a sector neutral bias, whereby the percentage of investment in an industry sector in the fund will match the percentage of investment in the same industry sector in the S&P 500 Index within an allowance of +/-5%. A church investing in this fund should have a minimum of $150,000 invested across a combination of the Core Equity Fund, Growth Equity Fund and Bond Fund. Distributions of income and withdrawals can be made at the end of each month.
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