Allocating Assets for Maximum Benefit
Determining and maintaining the right blend of investment types is perhaps the most important decision investors make to obtain the maximum benefit from their holdings.
Some consider fixed-income securities (bonds and CDs) the “safest” investments while equity securities (stocks) appear to be “too risky” for their church’s investment portfolio. However, returns from bonds and CDs can barely keep up with inflation. By holding some stocks along with bonds, achieving a rate of total return greater than inflation is possible. Thus, a combination of both bonds and stocks provides the kind of diversification for a church’s long-term investment portfolio that can both mitigate the risk of loss in real value from inflation while still providing some protection from downward moves in market value.
For helpful guidance in determining the right mix of assets for your portfolio, click here for an excellent description of the issues to consider according to the American Institute of Certified Public Accountants (AICPA).
Hundreds of UCC churches have found one of the three UCF balanced funds to be ideal choices for their endowments and other long-term investments. The asset allocation in each fund is monitored daily and rebalanced as needed to maintain the right blend. This insures that the fund’s asset allocation ratio never drifts much from its target.
For more information about the balanced funds offered by United Church Funds, click here or give us a call at 877-806-4989.
For more information about investing in stocks and bonds vs. investing in bonds alone, here’s a link to another article of interest from the AICPA.
Net Asset Values
as of 09/03/2010
| Fixed-Income | 4.7382 |
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| EQUITY FUNDS | |
| Domestic Core | 8.7884 |
| International | 10.3561 |
| Small Cap | 8.2327 |
| Total Equity | 9.1517 |
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| BALANCED FUNDS | |
| Conservative | 10.2429 |
| Moderate | 7.4552 |
| Aggressive | 9.4655 |
Learn more about our funds