If markets are declining in value, why won the General Board sell investments that are declining in value and purchase investments that are increasing in value?
Because past performance is not a predictor of future results, the General Board does not believe that selling investments or terminating fund managers based on short-term negative performance is a prudent strategy. For example, after the tragedy of September 11th when U.S. stocks saw dramatic price declines, the General Board actually increased its holdings of U.S. equities. This strategy was rewarded when the markets rebounded and stock prices rose as investors regained confidence in the months following that event.