We base our investment philosophy on the following beliefs:
We believe that the earth is the Lord’s, and everything in it. From a human perspective, we utilize our knowledge, experience, and available professional resources to provide efficient and effective investment management. Ultimately, we acknowledge that it is the Lord who provides for our needs in the manner that is most beneficial for our individual and collective good.
We believe we can be better stewards by pooling our collective talents and resources. We recognize that each WELS congregation or WELS organization could develop their own investment policies, retain their own consultants, and invest independently in separate portfolios. However, we believe that together we can benefit from the collective knowledge and experience of the membership throughout our synod. Together we can also leverage economies of scale.
WELS Investment Funds, Inc. serves as the administrator of three investment portfolios: WELS Balanced Fund, WELS Equity Fund, and WELS Income Fund. The WELS Balanced Fund is the portfolio specifically designed for trust, endowment, and scholarship funds within WELS. It is comprised of 60% equity mutual funds and 40% fixed-income mutual funds.
The main tenets of the investment philosophy employed by the WELS Investment Funds include the following:
Organizations need the ability to access their assets in a reasonable time frame. Each individual investment made for the WELS Funds will maintain a reasonable level of liquidity. WELS Funds are priced on the first business day of each month.
Preservation of capital and purchasing power:
The WELS Balanced Fund will be constructed to reduce the opportunity for capital loss, as well as the loss of purchasing power (achieving a rate of return lower than the current rate of inflation). While capital losses may occur, the portfolio construction, through diversification and quality of investment management, should reduce the relative likelihood of such an occurrence.
Stability of returns through diversification:
The WELS Balanced Fund seeks to decrease the likelihood of large portfolio losses by utilizing multiple, complementary asset classes, a combination of investment management companies, and the monitoring of the correlations between the various asset classes.
Long-term growth of capital:
The utilization of asset classes that will incur some level of return volatility over time is necessary to increase the expected total rate of return over complete market cycles.