These investments are in a pool of investments managed by six professional management
companies under the oversight of Senior Institutional Consultants at Morgan Stanley
Usually about 55% to 65% of the pool is invested in common stocks of U.S. and international
companies and 35% to 45% is invested in investment grade bonds and church obligations,
such as church bonds (see Fixed Income -Church Bonds and Loans).
Though past returns are no guarantee of future returns, funds invested 60% in
common stocks and 40% in fixed income securities have usually earned about 8% to
9% per year on average, over the long term.
The return (income and price change) on investments in common stock are usually
more volatile (they fluctuate up and down more) than investments in fixed income
securities, such as bonds. However, over the long term investments in common stocks
usually result in higher returns than in fixed income securities.
This investment alternative is probably inappropriate for funds that will be needed
within ten years.