New Covenant Balanced Income Fund (NCBIX)

Overview

The fund described invests primarily in two core financial instruments: the New Covenant Growth Fund and the New Covenant Income Fund, positioning itself as a hybrid investment vehicle with a focus on generating income while also seeking growth through equity investments. This dual-focus strategy allows for a diversification of assets, balancing between higher risk and potentially higher reward equity investments and more stable income-generating securities. The distribution of assets between the Income Fund and the Growth Fund is managed with a bias towards the Income Fund, reflecting a conservative investment stance that prioritizes steady income generation, supplemented by growth through equity investments.

Products and Services

• New Covenant Income Fund

  This fund constitutes the majority of the investment vehicle's assets, with 50% to 75% of net assets allocated. It primarily focuses on income generation for investors, seeking to achieve this through investments in a range of securities. A notable aspect of the Income Fund is its flexibility in investment options; it may allocate up to 20% of its net assets in commercial paper, which are short-term debt instruments issued by corporations to finance operations and meet short-term liabilities. Furthermore, the fund is permitted to invest up to 40% of its net assets in fixed income securities of foreign issuers, encompassing a broad spectrum of countries from developed to emerging markets. This international investment approach allows for diversification of income sources and exposure to various economies, potentially offering a hedge against domestic market volatility and opportunities for enhanced yields.

• New Covenant Growth Fund

  The remaining balance of net assets, after allocations to the Income Fund and cash or cash equivalents, is invested in the New Covenant Growth Fund. This fund is geared towards growth, primarily through equity investments. The objective is to achieve capital appreciation over the long term, which entails a higher level of risk compared to the income-focused investments of the Income Fund. This segment of the investment vehicle offers potential for higher returns through investment in companies with growth prospects. The allocation to the Growth Fund provides an opportunity for increased asset value over time, complementing the conservative, income-generating strategy of the Income Fund for a balanced overall investment approach.