AVC Investment Fund

In 1979, SigEp National Housing (SENH) created the Equity Management Fund to provide AVCs the ability to invest funds earning high rates of return. To better describe the fund, the name was changed in 2023 to the AVC Investment Fund. These funds enable SENH to finance SigEp house renovations and new builds. If your AVC has money in a traditional savings account, the AVC Investment Fund can provide a great alternative to grow those funds while maintaining the liquidity that AVCs need.

Favorable return rates

SENH pays interest on all investments at a rate equal to ½ percent below the United States Treasury 10-year note. Interest is applied quarterly based on the 10-year Treasury rate on the first business day after the quarter ends. Information about current rates can be found here.

Invest your funds with confidence

The AVC Investment Fund offers an AVC the ability to grow funds that are otherwise sitting in a low-interest checking or savings account, and to grow those funds without the risk of volatility in the stock market. Through the AVC Investment Fund, your AVC invests funds of any amount directly into the AVC Investment Fund with SENH. In return, your chapter receives a rate of return well above a typical savings account rate (currently around 0.33 percent, according to the FDIC in Feb. 2023).

Shape the future of SigEp Housing

SENH uses the funds invested in the AVC Investment Fund as capital to lend to SigEp AVCs across the country. Few lenders understand fraternal housing operations, so a loan can be difficult to obtain through a traditional lender. When AVCs invest in the AVC Investment Fund, they make a direct impact to the member experience by helping chapters obtain financing to perform needed renovations; financing that may otherwise be unavailable.

Access funds with ease

There are no additional fees associated with the AVC Investment Fund. To request funds from their AVC Investment Fund, AVCs simply submit the AVC Investment Fund withdrawal form. Withdrawal requests should be submitted with reasonable advance notice, and funds will be disbursed via check or ACH. Larger withdrawal requests over $100,000 will be disbursed no more than 90 days after receipt of the completed request. Only one withdrawal request may be submitted per calendar quarter. Investors will receive quarterly reports to view investment activity and interest earnings.

Ready to learn more?

For questions or more information about investing through the AVC Investment Fund, please contact Ben Hutto, SENH Managing Director at 804.310.4934 or ben.hutto@sigep.net.

Frequently Asked Questions

Is use of the funds limited to housing projects and needs?

No. An AVC can invest in the Alumni Investment Fund for any purpose. There are no restricted uses on withdrawals so long as the funds are used to benefit a SigEp chapter or AVC.

How is this fund different from the Chapter Investment Fund (CIF)?

All chapters pay a per-man fee as part of the fall bill that goes directly to the CIF. The CIF is held by the SigEp Educational Foundation and can be used only for educational (tax deductible) purposes. The Alumni Investment Fund is an opt-in investment. AVCs can choose to invest as much or as little into the fund. The Alumni Investment Fund is not restricted to educational purposes.

We don’t have a house, can we still participate?

Of course! If your AVC is saving for any future expenses the Alumni Investment Fund could be a good way to help.

How does SENH protect the fund balances if SENH’s debtors are behind on their loans?

SENH loans are underwritten with scrutiny, the same way a bank would. At the onset of the COVID-19 pandemic, there were concerns of a mass-default scenario where many AVCs would fall behind on payments. However, even through that difficult time, Alumni Investment Funds were protected and withdrawals were made on-time in accordance with our policy.

What controls are in place to ensure there are enough liquid assets on SENH’s side to cover withdrawals from multiple AVCs?

SENH has a robust set of policies to protect AVCs and SENH alike, including liquidity ratios to maintain adequate reserves for potential AVC withdrawals. SENH also maintains reserves as an additional backstop.