United Methodist Church General Board of Pension and Health Benefits, Evanston, Ill., will replace its diversified investment fund with a market-based multiple asset fund.
About $4.5 billion of the board's $11.5 billion in assets will be switched to the MAF, which passes investment gains and losses directly to participants instead of smoothing returns over time as the DIF did with a reserve fund. The board suspended the DIF's annual 3% base interest credit March 1, blaming poor market returns. As a result, participants hadn't received interest on their allocations to the fund. No managers will change as a result of the move, CIO Dave Zellner said.