Investment Policy

Giving & Income

• Objectives: TiH will seek to achieve the following targets over a 10 year horizon.
  • Giving Target: 4% of total assets annually
  • Giving Range: 2% - 7% of total assets annually
  • Investment Income: 4.5% annual rate of return minimum on start of year funds
  • Annual Benchmark: +/- 3% of S&P500 performance with lower overall standard deviation
• TiH donors have given with the expectation that their donations will fund missions work until Christ returns. The TiH portfolio must pursue long term capital growth so that TiH may continue giving in a sustainable way.
• Each year TiH will give 4% of its portfolio to mission organizations. The investments from Treasures in Heaven should generate income equal to 4.5% of the assets in our portfolio.
• For example: if the portfolio is valued at $10,000 in January and typical results are returned by the market, $225 will be transferred from the investment account to the operations deposit account twice that year (April and September)
• In years with abnormal returns, the portfolio manager and treasurer may choose to deplete or build the reserve fund, (tied to the operations account) by recommending a transfer of different amounts between 2 and 7 percent per year.

Investment Governance

• The Chairman of the Board of Directors will nominate annually a Director of Investments.
• Should the Board of Directors fail to approve the Chairman's nomination, the Chairman must nominate another candidate until approval is achieved.
• The acting Director of Investments will continue in his or her position until a replacement is confirmed.
• If the Director of Investments resigns or is otherwise removed from office, the Chairman of the Board of Directors assumes responsibility for the duties of the office until a candidate is approved for replacement.
• Upon approval by the Board of Directors on a majority basis, the Director of Investments will assuming the following powers and responsibilities:
  • Up to 10% of TiH assets can be invested fully at his or her discretion in any asset class meeting the investing guidelines of TiH.
  • Any asset class investment greater than 10% of assets requires majority approval by the Board of Directors.
  • The Director of Investments will propose, without need for formal meeting, his or her investment intentions and will execute board decisions within 2 days of decision, except when an alternate timeframe is specified.
• All Board Members are encouraged to propose investment ideas for review through the Director of Investments.

Investment Strategies

• Risk Tolerance: TiH will limit risk according to the following principles and restrictions.
  • Leverage: We will not engage in leveraged investing practices such as buying-on-margin or trading futures. Trading equity options are only permitted at certain levels and only as part of a comprehensive investment strategy.
  • Options: 10% maximum value at risk of assets at any time.
  • Short Selling: Does not comply with TiH risk management at this time.
• Asset Allocation: 60% of assets maximum in any equity class
• Other Principles: No More than 5% of total assets in any unique corporate equity, with no more than 10% of total assets in any unique corporate backed security.
• Investment Horizon: 10 years
• Divine Stewardship: The Director of Investments will, together with the Board of Directors, seek Godly wisdom in all investment decisions and will act according to the investment strategies and governance listed in this document.

Investment Preferences

• TiH will exhibit preferential treatment to companies which display the following characteristics.
  • Social Consciousness: We will not directly own companies whose primary products or services promote unhealthy bondage. This includes companies who profit from cigarettes, beer, drug abuse, pornography, prostitution, slavery and forced child labor.
  • Low Debt Ratios: Fiscally conservative companies which use debt wisely will be sought out for disproportionately high investment allocation.
  • Highly Rated Consumer Satisfaction: Providing value to consumers and seeking to delight them reflects a positive operational culture which is consistent with TiH expectations.
  • Consistent Profitability: We expect the companies we hold to have a continued pattern of pursuing profitable growth and operations.
  • Ethical Leadership: We expect companies we hold to have a continued pursuit of ethical business practices. The definitions of these standards are subject to change over time but include legal compliance, good faith governance, and charitable endeavors.
  • Products Protecting the Health and Wellbeing of Mankind

Investment Vehicles

TiH will seek to allocate assets according to the following portfolio over the investment horizon.