The Baptist Foundation of Alabama is responsible for managing in excess of $260 million of God’s money, left by God’s people, for God’s purposes.
The Foundation works hard to build and maintain an academically sound, institutional investment process. As we make investment decisions, we are continually mindful of our obligation to be good stewards.
One of our main objectives is to achieve the desired investment return of various accounts while incurring the least amount of risk possible. Investments are screened to avoid companies that are involved with alcohol, tobacco, gambling, pornography and abortion related goods and services. The Foundation reviews the risk (or loss of capital) associated with each asset class as it implements various portfolio allocations.
Our investment process is founded upon three core principles:
- Asset allocation (or how the investments are mixed) is the most crucial decision in structuring any portfolio.
- Downside protection is important in every portfolio.
- Be transparent in all areas of investing which includes management and associated fees.
With these core principles and the assistance from an institutional consultant, The Foundation utilizes multiple professional money managers to structure investment portfolios available to clients. This investment process makes The Foundation as academically sound as any secular institutions or endowment providing similar services.
In a world where investment advice is abundant, it is easy to let emotions drive investment decisions. At The Foundation, it is essential to our ministry that we operate with a proven process built on our core beliefs as Christians, while striving to be as academically sound and professional as anyone in the secular market. In the end, The Foundation understands that the money it manages has a higher calling because it is God’s money given by God’s people for God’s purposes.
- Endowment Fund – (Balanced Asset Allocation): The endowment fund is a diversified portfolio of assets for investors that require annual spending and real growth over a long period of time.
- Income Fund – (Short-term Fixed Income Allocation): The Income Fund is designed for investors whose priorities are safety and income.
- Equity Fund – (Balanced Stock Allocation): The Equity Fund is a passive portfolio designed to be fully invested in long-term stocks from U.S., international and emerging markets.
- Bond Fund – (Intermediate-term Fixed Income Allocation): The Bond Fund is invested in intermediate term Government and Corporate fixed income securities and is designed for investors whose priority is income.