IFC Collective Investment Funds
Faith-based investments... financial science... fiduciary prudence... finally.
Investing for Catholics (IFC) proudly announces the first ever Catholic values-based Target Date and Risk-Based Collective Investment Funds (CIFs). The CIFs are designed specifically to meet the needs of existing retirement plans and plan sponsors by assisting plan participants in reaching their retirement goals through low-cost, diversified and risk-appropriate investments without compromising faith or expected returns.
IFC, in collaboration with Hand Benefits and Trust (a BPAS Company), has developed 13 CIFs (10 Target Date and 3 Risk-Based), based on IFC's highly regarded socially responsible investment strategies. The new funds are scheduled to go live January 1, 2016, and will be accessible to virtually every Catholic organization’s current retirement plan through most recordkeeping platforms with information and daily net asset values available via Morningstar.
IFC Target Date Fund : R1 Series
IFC Target Date Fund : R2 Series
For simulated, historical performance of IFC Target Date Fund Index Portfolios, click here.
Index Funds, Financial Science & Catholic Values
||The IFC Target Date and Risk-Based Funds are built with low-cost index-style mutual funds that are screened to closely align with the United States Conference of Catholic Bishops (USCCB) guidelines for socially responsible investing. The funds are screened to exclude companies that provide services or derive revenues from abortion, the manufacturing of abortifacients, contraceptives, or make use of embryonic or fetal stem cells for product or research. Other screens include weapons of mass destruction, gambling, pornography, human labor infractions, and more. For a complete description of the funds’ screens, please see the information provided in the fund fact sheets.
||A single fund strategy makes the IFC collective investment funds easy-to-use and a one-step solution for any retirement plan.
||The IFC collective investment funds are built with index funds, making them one of the lowest investment cost options available.
||The professionally managed collective investment funds incorporate Nobel Prize-winning research of the Fama/French Multifactor Model for expected returns and time-proven strategies for maximizing expected returns at a particular level of risk. The Multi-Factor Model identifies sources of risk and return and contributes to the design of globally diversified portfolios, with a focus on exposures to small, value and profitability factors for stocks, and term and default factors for bonds.
||IFC’s collective investment funds are built in accordance with fiduciary best practices for diversification and fee transparency, while keeping costs low. Such high standards make the funds an excellent choice for Catholic retirement plans seeking to uphold the utmost standard of care, while affording themselves a high level of fiduciary protection.
|Promote Good Investor Behavior:
||Plan participants who are invested in professionally managed, single fund solutions are far less likely to take action or worry during market volatility. These holistic one-step solutions make it easy for participants to rely on investing science instead of making investment decisions based on emotions.
IFC Target Date Funds
A glide path refers to a formula that defines the asset allocation mix of a target date fund, based on the number of years to anticipated retirement or "target date." IFC's 10 Target Date Funds invest in a blend of index-style mutual funds that collectively deliver a diversified and consistently age-appropriate exposure to global stock and bond markets with a glide path, buy and hold formula that creates an adjusting asset allocation to become more conservative as the fund moves closer to the targeted retirement date. This glide path incorporates IFC's time-tested strategy alongside the understanding of long-term expected risk and return as well as the need to fuel long-term growth.
The current fund offerings target investor retirement dates in five-year increments, ranging from years 2015-2060, with the ultimate fund landing point arriving at a static mix of 40% stock funds/60% bond funds within approximately five years of retirement date. Participants can simply be matched and mapped into the Target Date Fund that most closely matches the year of retirement age, most normally at age 65 or 67.
Target Date Fund Glide Path Guide
IFC "Risk-Based" Retirement Funds
The IFC 3 Risk-Based CIFs are pre-built, designed and managed to maintain an established level of diversified stock and bond index-style mutual funds for three distinct asset allocations: Aggressive (80% stock funds/20% bond funds), Moderate (60% stock funds/40% bond funds) and Conservative (40% stock funds/60% bond funds). These Funds provide an easy and excellent alternative for defined benefit plans or do-it-yourself participants.