Short Term Investment Fund
Fund Performance
Type of Fund: The Short Term Investment Fund is a bond fund that seeks to maximize current income consistent with preservation of capital.
Objective: The fund's investment objective is to generate an excess return above the 90 day Treasury Bill Index. The fund will hold short-term investments with maturities that exceed maturities of average short-term funds. Hence, in periods of rising interest rates, the short-term fund should under perform funds holding investments with shorter maturities. However, in periods of stable and falling interest rates, the short-term fund should outperform funds holding investments with shorter maturities.
Who should Invest: Investors who seek conservative short-term investments that focus on capital preservation and liquidity.
Investments: The fund invests primarily in a broad range of high quality bonds such as U.S. Treasury Bills and Notes, U.S. Federal Agencies, short-term corporate obligations, international fixed income securities, commercial paper, certificates of deposit and other simil types of investments.
Management: Standish Asset Management Company LLC, based in Pittsburgh, Pennsylvania, with approximately $58 billion of assets under management, is one of the nation's largest investment managers specializing in fixed-income securities. Standish has been managing short-term assets using this strategy for the General Board since 1988. At any given time, Standish manages between $400 and $700 Million in this strategy for the General Board.
Strategy: Standish will manage the Short Term Investment Fund with the same investment style and discipline as the other General Boards short- term funds. The firm's process employs high quality securities, rigorous risk-control techniques and constant market monitoring.
As with all investment funds offered by the General Board, the Short Term Investment Fund adheres to the Social Principles of The United Methodist Church. The fund will not own securities of companies that derive a significant portion of their revenues from the sale of alcohol, tobacco, gambling, pornography or weapons production.
Performance Benchmark: Merrill Lynch 90-day Treasury Bill Index.
Performance Objective: To slightly outperform the performance benchmark.
Please call your client manager or the Investments Department at the General Board if you want additional information regarding this fund.
Fund Performance
Performance Disclaimer: The General Board achieved these results during periods of declining interest rates. You should not expect similar returns over the near-term.
Fund Holdings (As of 6/30/08): Conferences own approximately 18.1% of the Short Term Investment Fund. Download/view fund holdings in PDF format.
Expense Ratio: The General Board will charge participants in the Short Term Investment Fund annual expenses equal to approximately 0.35% of total fund assets. This cost includes investment management fees, operating expenses, and bank custodial fees.
Lending of Portfolio Securities: The Fund seeks to earn additional income by making loans of its portfolio securities to brokers, dealers and other financial institutions. The loans will be secured at all times by cash and liquid high grade debt obligations. As with any extension of credit, there are risks of delay in recovery and in some cases even loss of rights in the collateral should the borrower fail financially. Additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.
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