Mississippi Baptist Foundation
Sunday, March 29, 2015
Investment Management Services
The Mississippi Baptist Foundation provides money management services for Mississippi Baptist churches, institutions, and agencies, as well as for its own accounts. If you have long term investment needs such as endowed funds and cemetery funds or short-term investment needs like building funds, the Mississippi Baptist Foundation can help.
While the Mississippi Baptist Foundation can easily handle specific individual investments for a client, we seek, when at all possible, to pool the investments from the various accounts together to take advantage of the investment efficiencies afforded larger pools of capital. To that end the Foundation manages the following common investment pools:
MBF Equity Fund, a growth stock fund, is designed for capital appreciation with little emphasis on income. The Fund is invested in stock offerings of U.S. and international corporations by four outside professional money managers. The Fund has as its benchmark the S&P 500 and the Russell 3000. The Fund has the following asset allocation targets:
The Equity Fund utilizes the following outside professional money managers:
Large Cap Growth: Capital Asset Management
Large Cap Value: Lord Abbett and Company
Mid Cap Value: Private Capital Asset Management
International: Invesco Capital Management
MBF Fixed Income Fund, a bond fund, is designed to provide income, with little attention given to capital appreciation. The Fixed Income Fund is invested in U.S. government securities and corporate bonds by three outside professional money managers. The Fixed Income Fund is benchmarked against the Lehman Brothers Aggregate Index.
The Fund has the following asset allocation targets:
The Fixed Income Fund utilizes the following outside professional money managers:
Government & Govt. Backed bonds: Earnest Partners
Corporate Bonds: USbancorp Asset Management (FAF)
Fixed Income Mutual Fund: SIT & Associates
MBF General Endowment Fund is designed to meet the long-term investment objectives of perpetual endowment accounts. The Endowment Fund seeks to provide 5% income, which is paid out to the many Baptist causes, while growing the principal of the fund by the inflation rate over time, thereby guarding against the effects of inflation. The Endowment Fund is invested in a preset allocation between stocks and bonds, which is currently 30% in the MBF Equity Fund and 70% in the MBF Fixed Income Fund.
MBF Short Term Cash Fund, a money market type fund, is designed to out-perform the current yields from six and twelve month certificate of deposits, as well as the 91-day Treasury bill rate. The Short-Term Cash Fund matches a competitive rate of return with full liquidity. The Fund is managed by the Southern Baptist Foundation.
The Mississippi Baptist Foundation Board of Trustees and its Investment Committee carefully monitor the performance of the Foundation’s investments. Performance information is gathered from three primary sources. The first source is Salomon Smith Barney, which provides investment performance data on all the equity money managers. The second source is Investment Scorecard, which is a 3rd party performance measurement service that takes the Foundation’s accounting data to calculate investment performance for each money manager and for each common investment pool. The third source is the individual money managers.