Investing
Diversified Portfolio
We offer 4 types of Diversified Investment Portfolios, including Conservative, Moderate, Aggressive, and Endowment. Each type is detailed below to help you pick the best portfolio to suit your needs.
Who should invest?
Diversified Portfolios are appropriate for churches and agencies that:
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Have a long-term investment horizon (three years or greater)
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Have endowments which restrict the use of principal
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Require both current income and long-term capital appreciation
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Seek lower volatility of investment returns than investments in a single asset class
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Diversified - Conservative |
Conservative portfolios are designed with an emphasis on fixed income investments (up to two-thirds of the entire portfolio). Equities make up as much as 40% of the total asset allocation, while alternative investments play a minor role. It will have a higher yield than other diversified portfolios, and may have a lower return than one which emphasizes stocks.
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The Moderate Portfolio is our traditional diversified portfolio. The allocation is 40% fixed income and a 60% combination of equity and alternative investments. This “middle of the road” diversified portfolio is adjusted within different asset classes, based on current and future economic trends and analyses.
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Aggressive portfolios are designed for investment committees who wish to maximize their overall returns and who are impervious to short or medium term downturns in the stock market. The allocation is 65% equities, 15% alternatives and 20% fixed income and cash. Our investment committee will also move in and out of asset classes periodically with this portfolio. It places little emphasis on income; and a high concentration on stocks, making it a better choice for those that emphasize a long-term time horizon, with a total return approach to investment management.
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Endowment Portfolios are established to hold all of the Permanent Funds, Unrestricted Funds, Trusts and Annuities of the Foundation. The asset selection includes an allocation to each of the 11 asset classes offered at the Foundation. Asset allocation selection is done at the strategic level; that is, it will rarely change over the course of a business cycle. By utilizing additional asset classes, this portfolio should achieve market based returns with lower volatility than other diversified portfolios.
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| NOTICE: All investments incur risk. Market corrections or declines can take multiple years to recover losses. Past performance is not a guarantee of future performance. For more details refer to the Comprehensive Investment Policy Statement of the United Methodist Foundation, which may be obtained upon request. |
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“Earn all you can, save all you can, give all you can.”
-John Wesley
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