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How to Invest Contributions

When you create an ABE Charitable Gift Account, you can recommend how your contribution should be invested to meet your investment and giving goals. ABE offers five investment options, all managed by the renowned investment house of Northern Trust Corporation.

Investment Strategies for the ABE Charitable Gift Fund

The ABE Charitable Gift Fund offers Donors the choice of five investment strategies ranging from aggressive to conservative, all overseen by one of the most respected names in financial services, Northern Trust Corporation.

The Aggressive Growth Strategy: This strategy seeks high capital growth over the Long term with a target allocation of 100 percent stocks: 50 percent U.S. large-cap stocks, 20 percent U.S. small-cap stocks, and 30 percent international stocks.

The Growth Strategy: This strategy offers the potential of a higher return but also a higher risk than the Balanced, Conservative, and Short-Term strategies. It seeks long-term capital growth by investing 45 percent in U.S. large-cap stocks, 15 percent in U.S. small-cap stocks, 20 percent in international stocks, and 20 percent in bonds.

The Balanced Strategy: This strategy seeks a moderate return through both capital growth and income with a target allocation of 35 percent in U.S. large-cap stocks, 10 percent in U.S. small-cap stocks, 15 percent in international stocks, and 40 percent in bonds.

The Conservative Strategy: This strategy seeks current income and relative stability of principal with a target allocation of 30 percent in U.S. large-cap stocks and 70 percent in bonds.

Short-Term Strategy: This strategy seeks current income and a high degree of stability with an investment allocation of 100 percent in Northern Trust's Short-Term Investment Fund (Money Market).

Investment Performances for Strategies Offered by the ABE Charitable Gift Fund

Five funds managed by Northern Trust Corporation comprise the investment options offered by the ABE Charitable Gift Fund. As one of the most respected names in financial services, Northern Trust manages more than $575.5 billion in assets.

The U.S. large-cap investments are in an S&P 500 Index Fund. Performance is reported gross of investment management fees, which are paid by ABE.

Performance as of 06/30/2016

Five years One year Quarter
12.14 4.02 2.46

The U.S. small-cap investments are in the Russell 2000 Small-Cap Equity Fund, which is an index fund that tracks the Russell 2000 Index. Performance is reported gross of investment management fees, which are paid by ABE.

Performance as of 06/30/2016

Five years One year Quarter
8.63 -6.43 3.88

The international investments are in the InterCap Equity Index Fund, which is commonly used to represent the non-U.S. equity markets. The primary objective of the InterCap Equity Index Fund is to approximate the risk and return characteristics of the Morgan Stanley Europe, Australia, and Far East (MSCI EAFE) Index. Performance is reported gross of investment management fees, which are paid by ABE.

Performance as of 06/30/2016

Five years One year Quarter
1.86 -10.05 -1.33

The bond investments are in the Aggregate U.S. Bond Index Fund, which holds a portfolio representative of the overall U.S. bond and debt market, as characterized by the Barclays Capital Aggregate Bond Index. Performance is reported gross of investment management fees, which are paid by ABE.

Performance as of 06/30/2016

Five years One year Quarter
3.82 6.02 2.21

The Short-Term Strategy investments are in the actively managed Short-Term Investment Fund, which is composed of high-grade money market instruments with short maturities, including certificates of deposit, commercial paper, and a money market fund. The performance numbers are reported net of the 15 basis point investment management fee.

Performance as of 06/30/2016

Five years One year Quarter
0.22 0.41 0.15

 

W16

"Philanthropy is very important to me and my family. The ABE offers a great vehicle for managing charitable giving called the Charitable Gift Fund (CGF). The CGF allows ABA Members to make a donation for which they receive an immediate tax deduction. When convenient, donors can then recommend donations to other charitable organizations of his or her choosing. ABE handles all the paperwork, so philanthropy becomes what it should be - easy!"

I. S. Leevy Johnson
ABA Member/ABE Director
ABE member since 1968

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