Equity Portfolio
Portfolio
The Virginia Baptist Foundation equity portfolio seeks long-term capital appreciation. The portfolio provides an investment vehicle directed by a diversified team of managers with the flexibility to invest across all market capitalizations and industry sectors of both U. S. and international corporations similar to those represented in the Standard & Poor’s 500 and MSCI-EAFE Indices. The equity portfolio is well diversified with over 450 equity positions and 14 different investment managers. While diversified investing helps reduce risk, the portfolio investments will be subject to the market fluctuation and risks inherent in all equity securities.
Balanced Portfolio
Portfolio
The Virginia Baptist Foundation balanced investment portfolio is structured to achieve capital growth and current income. The portfolio has over 450 equity positions in a combination of U.S. and international equities. The fixed income portion of the portfolio is allocated in three different bond funds providing great diversity in the fixed income sector.* The asset allocation can change gradually over time as market conditions change. Under normal investing conditions, the assets of the portfolio will generally range between 45 and 70 percent for both equity and fixed-income investments. This asset allocation process considers expectations for relative asset class performance, relative risk and inflation to determine the optimal portfolio mix.
*For additional fixed income information please refer to the Virginia Baptist Foundation Fixed Income Portfolio.
Fixed Income Portfolio
Portfolio
The Virginia Baptist Foundation fixed income portfolio employs a diversified strategy using both passive (managed using index sampling) and actively managed fixed income investments. The target allocation of the portfolio is 50 percent in the Total Bond Market Index Fund, 20 percent in the Short-Term Investment Grade Fund, and 30 percent in the Intermediate-Term Investment-Grade Fund. The portfolio’s objective is preservation of principal and delivery of a stable investment return.
Total Bond Market Index Fund, Vanguard – This fund seeks to track the performance of the Barclays Capital US Aggregate Bond Index. It is passively managed using index sampling. The positions are broadly diversified in exposure to the investment-grade U.S. bond market. The fund duration is intermediate.
Short-Term Investment Grade Fund, Vanguard – This fund seeks current income with limited price volatility and the benchmark is the Barclays US 1-5 Year Credit Index. It is actively managed with an approach focused on intensive credit analysis and risk control. The positions will have a lower interest rate volatility than the broad U.S. fixed income market.
Intermediate-Term Investment-Grade Fund, Vanguard – This fund seeks moderate and sustainable current income. The benchmark is the Barclays US 5-10 Year Credit Index. It is actively managed and also has an approach focused on intensive credit analysis and risk control. The fund will maintain a weighted average maturity of 5-10 years.
