Diocesan Investment Fund

Transcription

1 Diocesan Investment Fund EPISCOPAL DIOCESE OF OREGON MARCH 31, 2018

2 Diocesan Investment Fund (DIF) AT A GLANCE What is the DIF? A long-term, diversified investment portfolio that includes U.S. and non- U.S. equities, fixed income, real estate and marketable alternatives Inv. horizon: long-term Assets: $26.3 million Focus: traditional inv. Inception date: 1/1992 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee SUPERVISED WITH ASSISTANCE FROM: Investment Advisory Services Full service investment consulting firm, free from all conflicts of interest Provides strategic investment advice and serves as a fiduciary to the DIF Custody Services Responsible for safekeeping assets Provides dedicated charitable services assistance Point of contact for account services 2

3 Investment Structure Target Asset Allocation The Investment Committee employs a best-in-class specialty manager approach according to the current target asset allocation Cash 0.5% Alts 19.5% Marketable Alts 12.5% Real Estate 7% Bonds 16% Fixed Income 16% Large Cap U.S. Equity 32% Non-U.S. Equity 24% Small Cap U.S. Equity 8% Stocks 64% 3

4 Manager Descriptions Manager Strategy Description Value Equity Fund An institutional mutual fund that employs a consistent bottom-up approach designed to invest in companies that are selling at attractive valuations relative to their industry peers. S&P 500 Index Fund LCG Equity Fund Small Cap Equity Small Cap Index Fund Int l Stock Fund The DIF is invested in an exchange-traded fund that seeks to replicate the performance of the S&P 500 Index. The fund is advised by Jackson Square Partners. The team employs a bottom-up research approach to seek companies that they believe have the opportunity for growth and the potential for excess returns. An institutional mutual fund that invests in small U.S. companies with a traditional value, absolute return focus. The manager places a premium on avoiding large losses and invests with a margin of safety. An institutional mutual fund that seeks to replicate the performance of the CRSP US Small Cap Index. A value-oriented mutual fund that seeks long-term capital growth by investing in a diversified portfolio of mid-to-large non-u.s. companies. Foreign Equity Fund An institutional mutual fund that employs a long-term, bottom-up investment strategy, utilizing fundamental research to identify undervalued securities in the international stock market. 4

5 Manager Descriptions Manager Strategy Description Int l Equity Fund Total Return Fund Total Rtn Bond Fund Total Bnd Index Fund America REIT II Real Estate Fund Global Abs Ret Fund All Asset Fund A growth-oriented mutual fund that seeks long-term capital appreciation by employing a primarily bottom-up investment strategy, investing in non-u.s. developed markets and emerging markets. An inst l mutual fund that seeks to outperform the Barclay s Aggregate Index by creating a highly diversified intermediate-term, bond portfolio. An institutional mutual fund that employs opportunistic positioning in the U.S. bond market to create a diversified, credit-focused portfolio with little to no holdings overlap with the Barclays Aggregate Index. An institutional mutual fund that seeks to replicate the performance of the Barclays Aggregate Index. A private real estate investment trust that seeks to generate real returns (above inflation) by investing in high quality, income-producing real estate. Diversified geographically and by property type. An institutional mutual fund that employs a fundamental, valueoriented approach to construct a global real estate portfolio. Flexibility to invest in any industry or region or part of a firm s capital structure. Sub-advised by Standard Life Investments and provides exposure to a highly diversified array of skill-based trades in global markets. An institutional mutual fund with a real return strategy that invests tactically across underlying PIMCO mutual funds with the objective of outperforming inflation by a rate of 5% over the long-term. 5

6 Returns as of March 31, 2018 Diocesan Investment Fund 60/40 MSCI ACWI/Barclays Agg (market benchmark) 12.0% 10.8% 10.0% 9.3% 8.0% 6.0% 6.1% 5.5% 8.1% 6.3% 6.0% 5.1% 7.9% 6.8% 4.0% 2.0% 0.0% 1 Year 3 Years 5 Years 10 Years Since Inception (1/1992) Ranked in the top 16% of peers* Ranked in the top 27% of peers* Ranked in the top 10% of peers* Ranked in the top 40% of peers* Ranked in the top 13% of peers* * The DIF is ranked in a national universe of plan sponsors with up to $50 million in assets. 6

7 Why Consider the DIF? We employ a carefully controlled investment process, monitored by experienced investment professionals. 1. ACCESS TO INVESTMENTS The investments retained by the Diocese for the DIF are typically only available to institutional investors. 2. COMPETITIVE FEES Projected annual expenses are 0.91%* including all management, custody and consulting service fees. 3. PRUDENTLY MANAGED The Committee consists of experienced investment professionals and is supported by practiced and respected custody and consulting specialists. * Expenses are projected using the DIF s target allocation. 7

8 Why it Matters from a large and small parish with investments in the DIF St. Bart s, Beaverton Earnings and returns from the DIF go directly to keep our facility in good shape. We have eight different Recovery Groups that meet here regularly. We can keep their rent rates extremely low to help them with their mission and extend our Outreach. We also have a Korean Baptist Church which meets at St. Bart s. We keep their rents very low as well, which helps them to offer two services, one in English and one in Korean, which reach congregants every Sunday. REV. JEFF LITTLEFIELD, RECTOR Ascension Parish, Portland After many years of turmoil and change, Ascension Parish found itself feeling stable and ready to look forward for the first time in many years. Its Parish financial resources had been safely parked in the Diocesan Short-Term Fund (STIF), and yet with interest rates at such historically low levels, the Vestry challenged whether it could put some of that balance to work in a longer-term growth investment/fund. The Diocesan Investment Fund (DIF) was considered, and quickly embraced as an opportunity for the longer term funds of Ascension to gain access to a professionally managed, broadly diversified and institutionally monitored portfolio at a very low cost. We used dollar-cost averaging to invest funds over a one-year period of time beginning in 2015, and couldn t be more pleased with the results. JEFF KRUM, SENIOR WARDEN 8

9 Episcopal Diocese of Oregon Which investment is right for you? Will you need this money in the next 12 months? Yes No DIOCESAN SHORT-TERM INVESTMENT FUND (STIF) Investment horizon: short-term Assets: $1.2 million Annual fee: 0.14% Focus: traditional, low duration Inception date: 2/2010 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee DIOCESAN INVESTMENT FUND (DIF) Investment horizon: long-term Assets: $26.3 million Annual investment fee: 0.63% Focus: traditional investing Inception date: 1/1992 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee DIOCESAN SOCIALLY RESPONSIBLE INVESTMENT FUND (SRIF) Investment horizon: long-term Assets: $2.5 million Annual investment fee: 0.57% Focus: socially responsible criteria & gospel value priorities identified at 2017 Convention Inception date: 9/2016 Governed by: Diocesan Board of Trustees & Diocesan Investment Committee FOR MORE INFORMATION As of 3/31/2018 Episcopal Diocese of Oregon (503) Finance Office 9

10 Diocesan Investment Committee A Committee of and reporting to the Diocesan Board of Trustees Rick Grimshaw, Convenor St. Michael & All Angels, Portland (503) Dick Anderson Christ Church, Lake Oswego (503) Rev. Brendan Barnicle St. Stephen s, Portland (503) Jeffrey Krum Ascension, Portland (503) Roger Neu St. John the Baptist, Portland (503) Lindsey Williams St. John the Baptist, Portland (503) James Baxendale Trinity Cathedral, Portland (503) ex-officio resources: Mike Stone, Diocesan Treasurer Mike Penfield, U.S. Bank Christ Church, Lake Oswego St. John the Baptist, Portland (503) (503) Ashlee Moehring, Sellwood (503)

11 Investment Restrictions Contributions Withdrawals $10,000 initial deposits Quarterly contributions Requests due by the 15 th of the month prior Monthly liquidity Requests due by the 15 th of the month prior 11

12 For More Information EPISCOPAL DIOCESE OF OREGON (503) Finance Office 12