The Short Term Investment Fund (STIF) is a diversified fixed income fund designed to provide returns in excess of those available from money markets and short term bond indices. STIF is constructed for consistent, low volatility performance with an emphasis on high credit quality, low risk, and liquidity. Following Friends Fiduciary’s socially responsible investment guidelines, STIF is invested in a manner consistent with Quaker values and testimonies.
This fund is particularly well suited for a one to five year investment horizon (e.g. reserves or funds needed for capital projects) providing a good return with low volatility.
The fund has a target allocation of 80% short term bonds and 20% money market for liquidity. The bond component is diversified across principal sectors of the domestic fixed income market including US agencies, corporates (A rated or better), and mortgages. There is an emphasis on high credit quality and low risk; however, as with any fixed income investment, fluctuations in interest rates can cause the value of the fund to decline in the short term.
For more information or to invest in the Short Term Investment Fund, contact Friends Fiduciary at 215-241-7272 or info@friendsfiduciary.org.
Resources
Unit Value
| Fund Name | Fund Type | Unit Value |
| Short Term Investment Fund | Enhanced Cash | $11.06 |
Short Term Investment Fund unit value is net of operating expenses; the Fund does not have scheduled distributions.
Investment Returns
| Cumulative Return | Annualized Returns | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fund Name | Fund Type | Current Month | Year to Date | Last 12 Months | 3 Yrs. | 5 Yrs. | 10 Yrs. | Since Inception | Inception Date |
| Short Term Investment Fund | Enhanced Cash | 0.15% | -0.11% | 0.96% | 2.75% | 1.90% | - | 1.55% | 4/30/2012 |
| Benchmark4 | 0.04% | 0.00% | 0.22% | 2.51% | 1.56% | - | 1.12% | ||
| Lipper Money Market Fund | 0.00% | 0.01% | 0.06% | 1.20% | 0.95% | - | 0.53% | ||
| Market Indices | |||||||
| S & P 500 Index | Equity | 5.34% | 11.85% | 45.99% | 18.68% | 17.42% | 14.18% |
| Barclay's Aggregate Bond Index | Fixed Income | 0.79% | -2.61% | -0.27% | 5.19% | 3.19% | 3.39% |
| MSCI All Country World ex-US Index | International | 2.94% | 6.54% | 42.98% | 6.98% | 9.83% | 4.73% |
Investment returns for periods exceeding 1 year are annualized.
Footnotes
- Investment performance is presented gross of fees and is inclusive of dividends and interest. Investment returns represent past performance and do not guarantee future results. Returns and principal values will fluctuate such that, upon redemption, units may be worth more or less than their original cost. Indices that comprise benchmarks are unmanaged and are inclusive of dividends and interest. Investors cannot invest directly in the indices.
- 4Short Term Investment Fund Benchmark: 80% Bank of America Merrill Lynch US Treasury & Agency 1-3 Year, 20% Lipper Money Market Fund.
- Lipper Money Market Fund is an index of the 30 largest funds that invest in high quality financial instruments with dollar-weighted average maturities of less than 90 days.
- Fees: The Short Term Investment Fund currently operates with a flat annualized fee of 0.34% (34 basis points).
The Short Term Investment Fund invests in high quality corporate and US Agency fixed income securities through an SEC registered, third-party advisory firm. The fund’s fixed income investments are subject to interest rate and credit risks. As interest rates rise, the value of fixed income investments will decline and may turn negative. Mortgage related securities tend to become more sensitive to interest rate changes as interest rates rise, increasing volatility. There is also the possibility that fund holdings may have their credit ratings downgraded or, in extreme cases, suffer a default. The investment manager who works in an advisory capacity may not deliver investment results as anticipated. Investors in the fund could experience a decrease in the principal value of their investment or go through a period of underperformance relative to the benchmark.
