FFC Announces New Standard Distribution Rate For The Consolidated Fund

March 31, 2014

The FFC Board of Directors has approved a reduction in the standard distribution rate effective with the 2016 semi-annual distributions.  The standard rate will decrease from the current 2014 and 2015 level of 4.5% to 4.25% in 2016 and 4.00% in 2017. In reaching the decision to adjust the standard rate effective in 2016 and 2017, the Board of Directors took into account concerns about inflation and projected capital market returns and the fact that the actual dollar amounts of recent “standard” distributions have been driven upward because of market performance in the years since March 2009.  The timing for implementation of the change is intended to accommodate the needs of FFC constituents which do multi-year planning and budgeting.  By reducing the standard distribution rate by a modest amount in quarter percentage point decreases, over time, the Board is attempting to provide constituents not only with a greater likelihood of long-term protection of capital against inflation, but also with the necessary time either to plan and budget or to override the standard rate and select a rate above or below standard. For full announcement, click here