The Common Fund offers three investment options:
- Growth Allocation of 70% equities and 30% fixed income;
- Balanced Allocation of 50% equities and 50% fixed income; and
- Income Allocation of 30% equities and 70% fixed income.
We do not encourage splitting a single account into two or more of the allocations. The three options simply allow trustees to look at the investment needs of each endowment and permanent fund of the church/agency and select the allocation that best meets the investment goal and needs for each fund.
An example might better illustrate what we mean:
A church has three endowment funds - scholarship, cemetery, and building. The cemetery fund must preserve the value of the invested assets and generate income for the care and upkeep of the cemetery. Therefore, either the Income or Balanced Fund may be the right choice. The scholarship fund, on the other hand, needs to grow and generate funds from income and appreciation for the annual award to a deserving student. In this case, the Balanced or Growth Fund might be better. Finally, the building fund is a reserve set aside for a planned renovation and expansion effort in five or more years, so the Growth Fund might be best.
Neither TIAA-CREF nor MMFA can or will predict investment returns. However, information about expected rates of return based on past rates is available.
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