Asset Rebalancing Keeps UPCF on Target

Asset Rebalancing Keeps UPCF on Target

By Terri Gadzinski, Executive Director & Timothy Thomas, Treasurer

The investments of the U.P. Catholic Foundation were rebalanced in early April to increase equity holdings and comply with its asset allocation strategy. The allocation target is 65% equities, 30% fixed income and 5% real estate. As a result of record decreases in the market in March, the UPCF’s investment allocation went below the target of 65% in equities. A rebalancing of the investment portfolio took place in early April 2020. The rebalancing helped to keep the UPCF on target with its asset allocation strategy by increasing equity holdings.  Aided by record market increases in equities in April, the overall portfolio increased by more than 12% from the end of March to the end of May.

The Diocese of Marquette recently hosted its annual Investment Pool Conference for parish, school, and endowment fund investment pool participants. The conference, held via video, was presented by Diocese of Marquette Finance Director Timothy Thomas, along with CapTrust and the Michigan Catholic Conference officials, reviewed several facets of the operations and performance of the National Catholic Investment Pool (NCIP), of which the UPCF is a participant. To review the complete Diocese of Marquette Investment Performance Report, visit www.dioceseofmarquette.org/finance.

It was noted that this asset allocation is set up to endure down cycles in the market, such as what was experienced in the first quarter of 2020. Although this strategy is meant for the long-term, it had instant positive results for the UPCF and other diocesan pool participants. It is especially important to “stay the course” with the asset allocation plan as most funds in the UPCF were established to last in perpetuity.

In addition to the solid administration and professional advice that the UPCF enjoys investing through the NCIP, it also gets the benefit of knowing that the investment holdings do not conflict with our Catholic teachings. This is achieved by a screening process which is part of the excellent service provided with investing in the NCIP.