Investment Objectives and Strategies
 

The investment objectives of the Investment Trust Fund (ITF) are long-term growth with minimal volatility and risk.  The Foundation's Investment Committee has instituted a strategy designed to ensure that the ITF is professionally managed, properly diversified and adheres to our United Methodist socially responsible investment principles.  To achieve these objectives, the Foundation employs an institutional investment firm to act as advisor and custodian.  The advisor is responsible for hiring, supervising and evaluating a variety of institutional investment managers selected for their expertise and performance in a specific sector of the investment market.  These portfolio managers are then responsible for the selection of securities within the parameters of their assigned sector and day-to-day investment decisions.

Equity investments are strategically managed to provide diversification while avoiding undue exposure to any single economic sector, industry group or individual security.  Stocks held in the portfolios will be considered 'investment grade' and traded on a recognized domestic stock exchange.

Investment in fixed income securities are actively managed to pursue opportunities presented by changes in interest rates, credit ratings, and maturity premiums.  Fixed income portfolio managers may select from appropriately liquid preferred stocks, corporate debt securities, obligations of the U.S. Government and its agencies, and securities convertible from fixed income to equities.