While this is the highest rate in sixteen years – and there is always a certain amount of sturm und drang in the media over a milestone of any kind – it was not unexpected by the Board, whose members have extensive financial investment memory. (Many remember the double-digit rates that obtained for a few years in the late 1970’s). And while a raise inflicts some intentional pain as a means of curbing inflation, it also offers opportunity.

After several years of near-zero interest rates, which has been a challenge for investors, increased interest rates have once again produced acceptable yield in the fixed income portion of a balanced fund such as EEF. As the Fed slows the rate of increases and stands back to watch their longer-term effects manifest, the Board is watching closely to take the best, most prudent advantage of these changes.

The Board as well as the Investment Advisory Board, all of whose members have long experience in financial investment and who are attuned to the economic indicators that help to guide decisions, have taken all this into account. There have been judicious course corrections throughout the year-plus in an effort to mitigate the negative impact on the Fund and to take advantage of the increasing returns in the bond markets. (See: Update by the Vice Chair).  Vigilance and judicious flexibility continues.