News & Seminars

A Comment on Brexit

John M. PreisOn June 23, 2016 the British people voted on a referendum to exit the European Union, known as Brexit, which is the abbreviation for "British Exit". The passing of this referendum resulted in the decline of the global financial markets and continued news coverage. Although the long- term impact of Brexit is still unknown, the Fund has a broadly diversified portfolio which provides protection against market volatility. 

As a participant of the YMCA Retirement Fund, the unique structure of the Plan is protecting you against this kind of market volatility now, as it has done several times during its 94-year history. The Fund’s portfolio is carefully structured to generate returns sufficient to meet or exceed future obligations, while maintaining sufficient liquidity to meet an uninterrupted stream of benefit payments.

The Fund’s long-term investment approach calls for discipline in the face of volatility, and its strategy remains unchanged. Nevertheless, the Fund’s Investment Department continually monitors the portfolio and makes adjustments as deemed in participants’ best interests as they balance returns and risk.

Volatility is an inevitable part of investing, and one that can cause some investors to over-react. Long-term investors like the Fund face the challenging but necessary task of remaining disciplined even as markets move sharply up or down.

If you wish to monitor the Fund’s investment performance, you can find information on the Fund’s website after every quarter here

Since 1922, account balances at the YMCA Retirement Fund have consistently earned interest and have never gone down, despite varying market conditions over time. In addition, more than 3.5 million payments have been made to YMCA retirees without a miss. And new retirees continue to annuitize their account balances at book value rather than market value, which is a big plus for YMCA retirees.

Participants will continue to receive 3% interest credits for the remainder of 2016, and our retirees should rest reassured that the Fund will not miss a monthly annuity payment.