Pooled Life Income Funds
Friends Fiduciary established the Pooled Life Income Fund Common Fund as a cost-efficient vehicle to invest and administer pooled life income funds (“PLIF”). The Common Fund is available to Quaker organizations with existing PLIFs. Plan assets transferred to Friends Fiduciary are invested and administered as a separate plan within the larger Fund.
The Common Fund’s lower expenses help to fulfill two goals:
- Increase income to the life income beneficiaries
- Increase the charitable remainder left to the designated Quaker organization
- Balanced portfolio’s asset allocation is weighted toward fixed income
- Fixed income allocation (55%) uses one domestic bond manager with a core approach
- Equity allocation (45%) uses two domestic managers for appropriate diversification
- Using domestic managers with low-turnover strategies helps reduce internal costs within the fund
Friends Fiduciary provides investment management for and administration of the commingled PLIF Common Fund. For participant level administration, Friends Fiduciary contracts with a highly experienced, low-cost, third party administrator to provide quarterly income payments and tax reporting to each plan’s participants. They also provide a Statements of Condition for each plan to the various charities in the commingled PLIF Common Fund. All administrative costs are paid by the individual plan from the assets under management.