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Heartspring
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Portfolio Selection Options

Our staff will work with you to help you decide which of the following Model Investment Portfolios may best meet your goals. Please contact us to learn more about how we can help meet your financial needs, delivering competitive returns from socially responsible investments.

Money Market Stable Value Diversified Conservative Diversified Moderate Diversified Aggressive Fixed Income Equity Custom
Principal Preservation Portfolios

We offer two portfolios designed for churches for which the protection of principal is paramount. Project funds, say for a current building campaign, or a cash reserve fund, which holds prepaid pledges, are examples of funds with short time horizons. These two types of funds should be invested with principal protection as the key investment strategy.

Money Market Portfolio

Funds in this type of portfolio are maintained for short-term cash needs. They are invested in high quality, short-term fixed income instruments of both U.S. government and U.S. corporations. The fund is designed for preservation of capital while providing a high degree of liquidity. The manager is to implement the established policies so as to receive a return, after fees, equal to or better than the return of similar funds maintained by competent managers.

Deposits to and withdrawals from the fund may be made on any business day.

Money Market Portfolios may be appropriate for churches and agencies that:

  • Want to maintain a stable dollar value for their invested principal
  • Are seeking a current short-term rate of income
  • Need access to their money on any business day

Stable Value Portfolio

The stable value portfolio is designed for churches and agencies that require competitive fixed income returns with minimal exposure to risk. Preservation of principal is the primary objective of this portfolio. Underlying assets are invested in U.S. government-backed securities, bank CDs and loans to Methodist churches or agencies, both in our conference and around the nation.

Stable Value Portfolios are appropriate for churches and agencies that:

  • Want to maintain a stable dollar value for their invested principal
  • Take a very conservative approach to investment risk

Long-Term Growth Portfolios

We offer four 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.

Diversified portfiolios are appropriate for churches and agencies that:

  • Have a long-term investment horizon (three years or greater)
  • Want permanent, perpetual, or long-term endowments
  • Require both current income and long-term capital appreciation
  • Seek lower volatility of investment returns than investments in a single asset class

Diversified – Conservative

Conservative portfolios are designed with an emphasis on fixed income investments (up to 75% of the entire portfolio). The remaining 25 percent of the total asset allocation is in equities. It will have a higher yield than other diversified portfolios and may have a lower return than one which emphasizes stocks.

Diversified – Moderate

The Moderate Portfolio is our most popular diversified portfolio. The allocation has a mix of 30-50 percent fixed income and 50-70 percent equities 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.

Diversified – Aggressive

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 can include up to 80% of equities and alternative assets, and 20 percent fixed income and cash. Our investment committee also will move in and out of asset classes periodically with this portfolio. It places little emphasis on income and has 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.

Specialized Portfolios

We offer three additional types of portfolios to meet special needs for churches and agencies.

Fixed Income Portfolio

The Fixed Income Portfolio is designed for churches to maximize income. This portfolio will be invested in a wide array of fixed income investments, including loans to Methodist churches or agencies. Principal values are not guaranteed and will fluctuate up and down in this portfolio.

Equity Portfolio

The portfolio is invested among the Foundation’s equity managers. This portfolio produces a very low yield and features full exposure to U.S. and international equity markets. This portfolio is an option for churches that wish to add a socially responsible equity position to a larger portfolio for diversification purposes.

Custom Portfolios

Some organizations have investment committees whose members have specific investment expertise, or receive other professional investment counsel. For churches or agencies that wish to take an active management role in their asset allocations, the Foundation offers custom asset allocations tailored to your specific investment requirements. You may choose from any or all of our 12 asset classes to add investment managers who adhere to the Methodist Social Principles. You will have the ability to utilize managers who may not be available to your organization by itself because of the managers’ investment minimums. You may also wish to add certain asset classes to complement your existing investment managers’ performance. For more information on customizing your portfolio, contact Dorena Moore.

 

Please contact us to learn more about how we can help meet your financial needs.

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