Investment Strategy

The Fund invests primarily in corporate bonds and government bonds issued or guaranteed by the U.S. government or one of its agencies, and mortgage-backed and asset backed securities of varying maturities. Investment decisions made by the Fund are consistent with the social-witness principles of the General Assembly of the Presbyterian Church (U.S.A.)

Investment Concerns

Bond funds will tend to experience smaller fluctuations in value than stock funds; therefore, fluctuations in price, especially for longer-term issues and in environments of rising interest rates, should be anticipated. Asset-backed and mortgage-backed securities are generally subject to higher prepayment risks than other types of debt securities, which can limit the potential for gain in a declining interest rate environment and increase the potential for loss in a rising interest rate environment.  Mortgage-backed securities may also be structured so that they are particularly sensitive to interest rates.  A high rate of defaults on the mortgages held by a mortgage pool may limit the pool's ability to make payments to the fund if the fund holds securities that are subordinate to other interest in the same mortgage pool; the risk of such defaults is generally higher in mortgage pools that include subprime mortgages. Other principal risks associated with securities in the Income Fund are the following: Interest Rate Risk, Call Risk, Credit Risk, Prepayment Risk, Put and Call Option Risk, Foreign Securities Risk, Options and Futures Risk, Government Securities and Rebalancing Risk. For a more complete description of these risks, please consult the Prospectus. Diversification does not assure a profit or protect against loss in a declining market.