Southern Baptist Convention Annuity Board Offers Expanded Choices for Investment

Mar 27, 2003 02:51 PM EST

DALLAS – The Annuity Board of the Southern Baptist Convention plans to launch its Capital Preservation Fund, April 1. The launch will expand investment choices for the Annuity Board’s retirement plan participants from 13 to 14 registered mutual fund investments.

"We have received many requests from our participants wanting an investment choice that stresses preservation of principal and generally offers a more attractive return than a money market fund," said John R. Jones, Annuity Board chief operating officer.

"We believe the Capital Preservation Fund will meet these criteria and offer our participants safety and stability in the current environment," Jones added.

The CPF will have a quarterly crediting rate applied to all contributions; the second quarter of 2003 has a rate of 2.54 percent.

Roddy Cummins, chief investment officer of the Annuity Board said, "We are in the lowest interest rate environment in over 40 years. However, with the majority of money market funds yielding 1 percent or less, the initial crediting rate of 2.54 percent provides the opportunity to offer potentially higher returns to our retirement plan participants whose investment objectives include low-risk investment options."

Cummins also indicated that the Federal Reserve had cut short-term interest rates 12 times in the past three years, taking short-term rates from 6.50 percent to 1.25 percent and as of March 17 average one- and three-year CD rates were at 1.79 percent and 2.59 percent respectively. The CPC seeks to maximize participants' current income while seeking to maintain a stable price per share of $10. The fund will post monthly dividends based on the quarterly announced crediting rate.

"With the addition of the Annuity Board's Capital Preservation Fund, we are now offering a more complete spectrum of investment options to our retirement plan participants who are seeking conservative investment objectives in this market," Cummins said.

By Pauline J.