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May 9, 2008

fund performance & fund management

Investment Management Services

Missouri Baptist Foundation General Investment Information

Click on the questions below to find the answer:

  • What is the Missouri Baptist Foundation (MBF)?
  • Who can invest with the Missouri Baptist Foundation?
  • What are the risks?
  • What investment options does the MBF offer?
  • Who manages MBF funds?
  • What does asset allocation mean?
  • How have the Funds performed?
  • What is a distribution policy?
  • How does MBF select investments for social responsibility?
  • What does it cost to invest with MBF?
  • When may purchases or redemption occur?
  • How does an organization invest with MBF?
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    What is the Missouri Baptist Foundation (MBF)?

    Governed by 12 trustees, the Missouri Baptist Foundation was incorporated in 1946 as a non-profit corporation. The MBF mission is to strengthen the mission and ministry efforts of Baptists of Missouri. The MBF purpose is to develop, manage, and distribute financial resources to benefit Baptist mission and ministry efforts in Missouri, in other states, and around the world.

    Who can invest with the Missouri Baptist Foundation?

    Any investor exempt from federal income tax under 501(c)(3) of the IRC of 1986, as amended, can invest, including Baptist institutions, agencies, commissions, foundations, associations and churches affiliated with the MBC, the SBC, or other state Baptist conventions. Also included are charitable trusts and gift annuities with remainder benefit to Baptist entities.

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    What are the risks?

    Investing in the securities markets, whether domestic or international, involves risk of possible loss of principal and/or income. Even though the MBF believes long-term investment of these funds will result in positive rates of return, no guarantee of such is written or implied. Past performance is no guarantee of future performance.

    What investment options does the MBF offer?

    MBF offers four common investment funds (Funds), each managed by one or more professional investment managers:

    In addition to the common investment funds above, MBF also has an institutional relationship with the Vanguard Group.

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    Who manages MBF funds?

    The MBF Board of Trustees is responsible for investment policy, and the Prudent Investor Act of 1995 requires the Foundation to provide an information disclosure to participants. The Board has made its Endowment Management Committee (EMC) responsible for investments. The Board and EMC appointed a staff Investment Review Committee (IRC) for daily investment responsibility. The Consulting Group of Salomon Smith Barney serves as investment consultant. With Salomon Smith Barney assistance, the MBF has hired professional investment managers for each common investment Fund discipline of our common investment Funds, including:

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    What does asset allocation mean?

    Once you determine your investment objective, you should design an asset allocation with adequate diversification that will most likely achieve your objective with the least risk. The MBF Balanced Fund asset allocation is 35% invested in the MBF Bond Fund and 65% in the MBF Stock Fund. The MBF Stock Fund is diversified by allocating 54% in large cap stocks (equally in value, growth, and core), 23% in domestic small mid cap stocks (both value and growth), and 23% in international stocks.

    How have the Funds performed?

    Performance numbers are net after cost recovery and investment manager charges. The SB Bank Deposit Program is FDIC insured up to $1,000,000 per participant. The Citi Institutional Liquid Reserves does not have FDIC insurance.

    What is a distribution policy?

    The policy provides a means to manage and maintain an appropriate level of annual dividend from the MBF Balanced Fund that is consistent with the Fund’s overall investment objectives.

    Go to Distribution Policy page

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    How does MBF select investments for social responsibility?

    Responding to the biblical challenge for responsible stewardship, the MBF calls for conscious investment decisions consistent with Christian moral and ethical principles. The Foundation avoids investments in companies with principal business activities inconsistent with this philosophy, including gambling promotion; alcoholic beverage or tobacco production; production, sale or promotion of pornography; abortion; and fetal tissue research resulting from abortions.

    What does it cost to invest with MBF?

    The MBF seeks to keep participant costs as low as possible. Administrative overhead costs are shared proportionately among all accounts under management. Those costs are charged directly to and paid out of the assets of each respective Fund.

    Go to Cost Recovery Schedule page for detail of costs

    When may purchases or redemption occur?

    Purchase or redemption of the MBF Cash Fund may be processed at any time with written notice. There is no penalty for withdrawal. Redemption from the assets of other Funds may be made with a 30-day written notice, based upon the net asset value at the following month end of notice received.

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    How does an organization invest with MBF?

    To invest in one or more MBF Funds, an organization must sign an Investment Custodial Agreement and complete a Participant Application form.

    Click here for Investment Management Services Request Form

    The Missouri Baptist Foundation can help

    The Missouri Baptist Foundation can help you or your church establish and manage endowment funds and promote endowment giving. For more information, call 1-800-776-0747 today; or contact us by e-mail.