Friday, September 30, 2011

Investment Fund Summary

Here is a summary of the Foundation’s funds and how they have been affected by the markets this month; a full report with comparisons to benchmarks will be available October 10th on the Foundation’s website: www.rm-umf.org.

“Our long-term view is an important aspect of our investing strategy. We avoid making hasty investment decisions in response to short-term market volatility. No one—not even the most skilled financial experts—can accurately predict the short-term direction of the U.S. and world stock markets. And past performance is no guarantee of future performance. History has proven—from 2000 to 2003 and again from 2008- 2009—that adhering to a disciplined strategy is the best policy—it works.”
– David Zellner, Chief Investment Officer of Wespath* and the General Board of Pensions and Health Benefits of the United Methodist Church.


Fixed Income Fund: This fund, as its name suggests, continues to be a reliable source of income for churches, in spite of the fact that overall share price declined this past month. The fund is primarily comprised of a broad range of fixed-income instruments, such as U.S. Treasury and agency securities, foreign government bonds, corporate bonds, mortgage-backed securities and asset backed securities. The fund does not hold municipal bonds as part of its portfolio.

Equity Income Fund: Comprised of 70% US stocks and 30% international stocks, this fund
experienced a decline in share price. On the positive side, investors in the Equity Fund are
positioned for growth. Shares are “on sale” for new investments. Existing investors will gain the
long term benefit of asset class rebalancing that is taking place behind the scenes.

Balanced Fund: 65% stocks and 35% bonds; overall this fund is invested in more than 30 different investment manager firms. These managers provide the fund with broad diversification of holdings in a variety of U.S. and non-U.S. securities. These include stocks, traditional bonds, inflation-linked bonds, real estate investment trusts, securities, commodities, and interests in private equity and private real estate partnerships. Due to the fortunate timing of some recent investment purchases, this fund’s returns remain positive for 2011.

Short Term Fund: This is our money market fund. It is not invested in the markets or banks. Instead it is invested in capital loans to churches from Texas to Montana. It has been and will continue to be a reliable investment that preserves principal and earns competitive interest. This month, the rate of return exceeded 1.5%, proving that this continues to be a solid and profitable place for cash.

Methodists Helping Methodists Fund: These certificates of participation earn interest by investing in loans to churches in only the Rocky Mountain and Yellowstone Annual Conferences. This money is not invested in the markets or banks and continues to be a reliable investment opportunity. There have been NO losses in this fund’s 51 year history.

*The Foundation’s investment manager is Wespath, a Division of the General Board of Pensions and Health Benefits of the United Methodist Church

Thursday, August 11, 2011

A Very Bumpy Road: Rocky Mountain United Methodist Foundation comments on the markets

Given recent performance in the stock market, it is understandable that the Foundation’s investors may be concerned about the stability of their funds, particularly since many of the investments for churches are in the stock market.

“The important thing to remember about these past few days is that you should maintain perspective. Panic is not a strategy. Remember that the S&P 500 had still risen 77% off its bottom in March 2009 through Thursday. We did not see a BLACK MONDAY,” according to Janet Greiner, 5280 Magazine’s investment manager of the year.

It is also important to remember that the strategic approach of the Foundation’s investment manager* has served its clients very well throughout its 102 year history of investing in the markets. History has proven that market based investments will be able to ride out the storm and continue to realize long-term gains.

It is going to be a rocky road for the next few years, but ultimately the investment road is uphill – and that’s a good thing! For additional reading and market perspectives, visit http://www.gbophb.org/sri_funds/2001108CIO_letter.asp.

Here is a summary of the Foundation’s funds and how they have been affected by the markets this week so far:

Fixed Income Fund: This is a bond fund, not a stock fund. These funds have improved this week as the markets find bonds (including US Treasury bonds) a safe place to put their money.

Equity Income Fund: Comprised of 70% US stocks and 30% international stocks, this fund saw losses that reversed all gains year-to-date, taking funds back to levels of November 2010. The good news is that over time, the stock market has proven positive gains.

Balanced Fund: 65% stocks and 35% bonds; the stock piece of this fund fell, pulling the share price down a bit, but it could have been much worse! The bond piece of this fund will help minimize the losses.

Short Term Fund: This is our money market fund. It is not invested in the markets or banks. Instead it is invested in capital loans to churches from Texas to Montana. It has been and will continue to be a reliable investment that preserves principal and earns competitive interest rates.

Methodists Helping Methodists Fund: These certificates of participation earn interest by investing in loans to churches in only the Rocky Mountain and Yellowstone Annual Conferences. This money is not invested in the markets or banks and continues to be a reliable investment opportunity. There have been NO losses in this fund’s 51 year history.


Please call the Foundation if you would like to discuss your specific accounts. 303-778-6370

*The Foundation’s investment manager is Wespath, a Division of the General Board of Pensions and Health Benefits of the United Methodist Church

Monday, August 1, 2011

2010 Annual Report is now available

• 8.2% increase in total deposits
• $16.3 million invested in the socially responsible investment funds
• $4.3 million invested in the Methodists Helping Methodists Fund
• $498,000 new loans to churches for capital projects
• Changed investment manager to Wespath, a division of the
General Board of Pensions and Health Benefits of the United
Methodist Church
• Created a new Balanced Fund investment option
• Provided free planned giving and endowment programs to
churches
• Elected six new members to the Board of Directors
• Bid farewell to the retiring Executive Director, Marilyn Bierbach
• Hired a new Executive Director, Kristi Kinnison

Please click here to view the entire 2010 Annual Report.

Wednesday, April 20, 2011

Foundation Savings Rates Among Highest in the Country; only $500 to invest

The Rocky Mountain United Methodist Foundation continues to pay interest rates higher than national, local and state banks and credit unions.

And now the Foundation has lowered the minimum investment required for this powerful Methodists Helping Methodists Fund. Starting at $500 for Demand Accounts and $1000 for Term Certificates, investors can enjoy these high rates of return:

April 1, 2011 rates quoted are Annual Percentage Yield –APY:

TERM $1000 to$4,999 $5000 to$9,999 $10,000and up
1 year APY 1.35% 1.86% 2.01%
2 year APY 1.60% 2.11% 2.26%
3 year APY 1.86% 2.37% 2.52%
4 year APY 2.37% 2.88% 3.03%
5 year APY 2.62% 3.13% 3.28%
Demand accounts starting at $500 APY 0.50%

Investors can take part in an investment that earns higher than average interest while providing seed money for competitive loans to United Methodists churches in Colorado, Wyoming, Utah and Montana. This enables United Methodist Individuals, Churches and Groups to live out God’s unique call for serving by connecting faith and money.

Since 1960, the Methodists Helping Methodists Fund (originally the Church Extension Loan Fund) has never had a default and continues to help provide support for churches through loans, while also giving individuals an opportunity to be faithful stewards of God’s financial blessings.

Visit www.RM-UMF.org or call the Foundation office at 303-778-6370 to learn how you, your church and group can invest.

Accounts are not FDIC insured nor are accounts insured by any other governmental or private insurance of any kind. This is not an offer to sell or the solicitation of an offer to buy any investment or security. The offering is made only by the current Offering Circular which is available by contacting the Foundation.

Wednesday, March 30, 2011

4 Key Findings from STATE of the PLATE


Giving Rebounds for Some Churches,
But Charitable Deduction Issue Looms Large

By Brian Kluth, Founder of www.MAXIMUMgenerosity.org & www.STATEofthePLATE.info

Since the recession started in 2008, churches have been learning to navigate troubled financial waters that are unprecedented in our lifetime. The third annual STATE of the PLATE, a collaborative research project by Brian Kluth’s Maximum Generosity ministry, Christianity Today International, publisher of Church Finance Today and Leadership journal, and the Evangelical Council for Financial Accountability (ECFA) received responses from a record 1,507 churches of all sizes, theological leanings, and from every region of the country. The survey asked church pastors, staff, and leaders to report on their church giving, budgeting, generosity initiatives, and programs to help families negatively affected by the economy.

In the latest research, released on March 30, 2011, four major trends emerged. Please click here to read the entire report.