| Investment
Management Services
Common
Questions and Answers
Who
can use the WMU Foundation investment management
services?
Any state, regional,
or local Woman's Missionary Union organization,
any other Christian institution, church agency
or enterprise, state or regional group, state
convention or any benevolent, charitable, educational
or missionary undertaking, institution, church
agency or enterprise related to, or affiliated
with the Woman's Missionary Union Foundation,
the Woman's Missionary
Union, or any affiliate can use the Foundation's
investment management services. WMU Foundation
has received the approval of the Alabama Securities
Commission to offer these services to this broad
group of organizations. WMU Foundation can not
accept funds from organizations outside of this
group and does not serve as a registered investment
manager.
How
much money must you have to use the WMU Foundation
investment management services?
The Foundation will accept accounts as small
as $10,000. The key is that the funds must be
committed for long term management, meaning that
the investment life of the funds is at least three
years or longer.
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Can
you keep income and assets separated for funds
with specific purposes?
Yes, the Foundation has hired a custodian
that uses an accounting system that holds separate
fund balances and income balances for each sub-account
that you designate. For example, you may hold
funds for specific missions, or for scholarships.
The accounting system keeps track of those funds,
and distributions from those funds, so that you
can honor the commitment made to the donor establishing
that specific purpose. The accounting system used
by the custodian generates a separate report showing
total distributions, additions, earnings and funds
balances. These statements can be mailed on a
monthly, quarterly, semi-annual or annual basis.
Normal distribution is quarterly.
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How
are the funds invested?
The Foundation has selected The Trust Company
of Sterne, Agee & Leach, Inc., a trust company
associated with a full service brokerage firm
and money management firm, to provide investment
management services. The investment committee
of the Foundation worked with The Trust Company
to develop five fund models to meet a range of
investment objectives from money market funds
to highly equity-oriented funds. The investment
committee monitors performance of these funds
on a regular basis and makes adjustments to the
models as market conditions indicate a need for
change.
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How
do you decide how to invest the funds?
You should select a model based on your income
needs, the life span of the fund you're investing,
and your tolerance for risk. A Foundation employee,
or a Trust Company employee, will work with you
to assign your various accounts to the appropriate
investment model.
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Can
you add more money?
Yes, you can add funds to existing accounts
or create new accounts at any time. Just call
the Foundation offices and to notify them of the
transfer. They will supply you with all necessary
forms, and then confirm the receipt of those funds
upon transfer. The funds will be invested as quickly
as possible upon receipt.
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Can
you get the funds back?
The Foundation requires that you execute a
contract upon establishing a relationship for
investment management services. However these
contracts spell out only the terms of the management,
they contain no term or minimum investment periods.
You are free to withdraw your funds at any time
with 30 days notice.
Although you can have your funds returned upon
short notice, please understand that it may be
harmful to invest your funds in the investment
markets for short periods of time because of the
potential for fluctuation over the short term.
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How
much does it cost?
The Foundation is able to achieve efficiency
in management because of the large pool of funds
that it manages. Therefore, it is able to provide
you with both investment management and accounting
services for a very competitive cost of approximately
1%. There is no minimum fee, and no fee for separate
sub-accounts.
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How
do you get started?
Getting started is easy. Just complete the
questionnaire
to see if you're a candidate. If so, please call
the WMU Foundation at 1-877-482-4483 or email
at wmufoundation@wmu.org.
They can help you work with your board to make
a decision, and then lead you through the process
of establishing an account relationship.
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