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New Accounts Add Flexibility

New Accounts Add Flexibility
12/13/2016

Two new ways for Account Holders to have their funds managed have been added by the UM Foundation. An Aggressive Account and an Income & Growth Account have been introduced to augment the Core Balanced Account, a Foundation staple since it was founded as the Unified Account in 1973.

The two new Accounts differ from the Core Balanced Account in their objectives, asset allocation, and methods of distribution.

The Aggressive Account is designed to have a longer investment horizon than the Core Balanced Account and will have a typical asset allocation of 80% domestic and international equities and 20% fixed income securities. Account Holders may choose to set up withdrawals from this account at their discretion, as determined by their own internal formula.

The Income & Growth Account is designed to have a shorter investment horizon than the Aggressive Account and will have a typical asset allocation of 20% domestic and international equities and 80% fixed income securities. Account Holders may choose to set up withdrawals from this account at their discretion, as determined by their own internal formula.

The Core Balanced Account will continue as before, with a typical asset allocation that includes 60% domestic and international equities and 40% fixed income securities. Regular distributions from the Core Balanced Account utilize a “total return” approach, based upon the combination of interest, dividends, other earnings, and capital appreciation/depreciation. Distributions may be reinvested instead, if the Account Holder so desires.

Our hope is that Foundation Account Holders will benefit from the added flexibility that these new accounts will provide. If your church or agency is interested in learning more about any of the Foundation accounts, please contact us.

 
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