Fund Description

The fund is a fund-of-funds that invests primarily in a growth-oriented equity fund and an income-oriented bond fund, generally holding a majority in the growth fund. It allocates 45%-75% of net assets (about 60% neutral) to the growth fund, with the remainder in the income fund or cash/cash equivalents, and periodically rebalances its investments in the growth fund and the income fund within these limits, taking into account past and anticipated future performance of both underlying funds; the allocation varies in response to market conditions, investment outlooks, and the risk/reward characteristics of equity and fixed income securities. Investors indirectly bear underlying fund fees. The growth fund holds diversified U.S. large-cap equities seeking to track a broad index, subject to Presbyterian Principles screens. The income fund invests in corporate bonds and also invests in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities; it invests in mortgage-backed and asset-backed securities and may enter into fully-collateralized repurchase agreements, and it may invest in foreign fixed income securities and up to 20% of its net assets in below-investment-grade bonds; it will attempt to maintain an overall credit quality rating of AA or higher. The underlying growth fund and income fund seek to invest consistent with the Presbyterian Principles, including avoiding companies involved in tobacco, for-profit prisons, and certain weapons-related activities, and may screen out issuers for environmental reasons or serious human rights violations.