Investment Funds - Investment Philosophy
and
Choice of Funds
Our investing practice is
income with preservation of principal and long-term conservative growth . We invest in stock which is
socially responsible in accordance with the Social Principles of the United
Methodist Church which exclude those corporation
whose major revenues
are
derived from alcohol, tobacco, gambling, production of nuclear armaments and
pornography, etc.
As the Donor of endowment funds or the
Depositor of
long-term funds of churches, and church-related institutions, you will be
able
to decide into which
of several Funds you wish to have your endowment trust or
deposit account invested. The Foundation
selects the investment manager(s)
and monitors their
performance. The permanent charitable trusts and long
term deposit accounts
are pooled together for investment purposes. This
partnership offers the possibility
of minimizing investment cost while
maximizing
investment returns.
The investment objectives and the
types of investments used for these Funds are
as follows:
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Fund A
(Income) is invested in fixed income investments (bonds and cash
equivalents). Fund A is designed for those interested primarily
in current income yield with a minimum of investment risk.
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Fund B1
(Income with Growth) is invested
75% in fixed income (bonds and cash equivalents), and
25% in equity investments
(stocks). Fund B1 is designed for those interested primarily in
current income yield, with modest capital growth and low
investment risk.
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Fund B2
(Balanced) is invested 40% in stocks
and 60% in fixed income
(bonds and cash equivalents). Fund B2 is designed for those
primarily interested in maximizing total investment return, with
a balance of current income yield and capital growth, and
moderating investment risk.
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Fund B3
(Growth with Income) is invested 50%
in stocks and 50% in
fixed income (bonds and cash equivalents). Fund B3
is designed for those primarily interested in long-term capital
growth with the emphasis on capital appreciation rather than
current income.
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