Certificates Provide Alternative to Fixed Income Investments


Like any investor, the Atlanta Decatur Oxford District (ADOX) Trustees want to get the biggest bang possible for their investment buck while balancing risk. Fred Williams, ADOX District Trustee Chair, explains why the Trustees shifted the district’s Fixed Income Funds to the Georgia United Methodist Foundation’s Certificate Program.

“Upon review of the performance of each fund, we felt that the performance of the Certificate Program more closely aligned with our overall objectives of maximizing our return on investment and providing income from a relatively secure investment that can be used in defraying Trustee expenses,” Williams said. “As Trustees of the funds we have, we must limit our speculation and risk of loss. We consider the Certificate Program a low-risk investment due to the historical performance of GUMF programs, strict investment and lending policies, and strong and competent management of GUMF.”

Investors may choose from certificates with 1-, 2-, 3-, and 4-year maturities. The Trustees realized the longer term certificates offered higher yields than the Fixed Income Fund. “By locking in the higher 4-year rate, this provides us with a known return that can be used for more efficient planning of fund utilization," Williams said. "We do not anticipate needing these funds prior to maturity. We have other certificates with staggered maturity dates that will provide liquidity for the interim."

The Trustees are also pleased they don’t have to keep moving their funds from bank-to-bank to get the best rates. GUMF certificates offer United Methodist churches, districts, pastors and laity in Georgia higher returns than similar instruments. “Our all-volunteer committee appreciates not having to spend time with constant monitoring to make sure that our money is doing well,” Williams said. “Our full-time District Administrative Assistant is also very complementary of the ease of working with GUMF staff, as well as their responsiveness to any requests that she may have.”

The ADOX District Trustees also appreciate the fact that certificate investments fund GUMF’s Loan Program. “Investing our funds in GUMF gives opportunities for our sister churches that might otherwise not be available to them for furthering the work of spreading God’s Word in our world. Investing in the commercial banking industry would not necessarily provide these opportunities,” Williams said.