1. Investing Your Congregation’s Endowment Fund Assets
Jim Schroeder
LCMS Foundation

2. Questions you may have
Does the Lutheran Church - Missouri Synod offer an investment program for the endowment funds of LCMS congregations?
How is this investment program managed?
How many investment options are there?
Can we have more than one account?
Who will help us?

3. LCMS Corporations LCMS Inc. - Est. 1847
Concordia Publishing House – Est. 1869
Concordia University System – Est. 1839
Lutheran Church Extension Fund – 1902
Concordia Plan Services – Est. 1937
LCMS Foundation – Est.1958

4. The LCMS Foundation is the only LCMS organization that offers the
investment expertise and gift planning services
to help your congregation to
establish,
manage,
and grow
your endowment fund.

5. LCMS Foundation Board of Trustees (Nov 2012)
Mr. Roger Prigge
Retired Vice President
Money Marketing Trading
Wells Fargo Corp.
Bloomington, Minnesota
Rev. Dr. John Karl(Hans) Trinklein
Senior Pastor
Olive Branch Lutheran Church
Okawville, Illinois
Ex-Officio Member:
Mr. Jerald Wulf
LCMS Chief Financial Officer
St Louis, Missouri
Mr. Don Graf, Board Chairman
Partner, McClesky, Harriger, Brazill & Graf LLP
Lubbock, Texas
Ms. Patricia Bokenkamp
Special Assistant
Salem Lutheran Church
Tomball, Texas
Mr. Mark Charron
Board Vice-Chairman
Partner, Deloitte Consulting, LLP
Hartford, Connecticut
Mr. A William (Bill) Kernen
Co-Owner/President
Kernen Partners, LLC
Omaha, Nebraska
Rev. Dr. William Meyer
Part-time Director of Development
Concordia University System
St Louis, Missouri
Dr. Mark Sheldon
Ophthalmologist
Grand Rapids Ophthalmology
Grand Rapids, Michigan
The Reverend Richard Drews
Senior Financial Consultant
Thrivent Financial
Libertyville, Illinois
Mr. John Schaller
Retired, Former Owner/Mgr
Sierra National Capital Co.
Pocatello, Idaho
Mr. Ernest Garbe
LCMS President Representative
Dieterich, Illinois

6. Wilshire Consulting… Advisor to over 125 clients with over 700 billion dollars in assets under management.
Helps the Foundation Board of Trustees:
Formulate the investment policy
Structure the investment program
Select the asset allocation targets
Select the asset managers
Evaluate asset managers performance

7. LCMS Foundation Investment Philosophy
It is not possible to time market cycles.
Capital markets revert to the mean over long time periods.
Fees have a meaningful impact on returns.
Asset allocation has the most significant impact on investment results.
Investment performance measurement and monitoring activities provide assessment of the success of our investment strategies.

8. LCMS Foundation Investment Management
The Foundation manages more than $900,000,000 dollars on behalf of LCMS donors and ministries. (June 2012)
This is accomplished under the guidance and advice of the Foundation’s Board of Trustees through their Investment Committee and in counsel with their investment advisor, Wilshire Associates.
The long term objective for the Foundation is to achieve total rates of return which exceed the appropriate market benchmarks with minimal excess risk versus those benchmarks.
Eight carefully screened investment managers utilize thirteen funds to manage the Foundation’s assets under close supervision to ensure adherence to investment policies and objectives.
Managers are reviewed monthly for returns, adherence to style and personnel changes.

9. Your LCMS Foundation gift planning counselor and trust administrator can help your committee:
Design your asset allocation for your endowment fund assets.
Select your income distribution plan.
Receive your account statements for your reporting needs.
Receive and administer gifts to your endowment fund.
Assist the members of your congregation in making current and future gifts to your endowment fund.

10. LCMS Foundation Investment Services Staff
The LCMS Foundation’s expert investment services staff will
allow you to focus on the mission of your congregation
and know that your endowment fund assets are in the capable hands of fellow LCMS Christians, who have the training and experience to support you and your congregation.
Tom Angus Sr. VP
Richard Christiansen – VP of Investment Operations
Trust Administrators
Donald Horn Liz Trost
Tina Clasquin Wayne Sell
Scott Radden Kerry Knipp

11. SCHEDULE OF LCMS FOUNDATION CUSTODIAL FUND FEES
LCMS Foundation Account Services Fee: 0.55%
SERVICES INCLUDE
 Investment management of assets.
Distributing income and principal as required.
Quarterly account statements as required.
The above charges are quoted on an annual basis, but will be charged monthly at one-twelfth the rate and allocated to income of the account at the time of charge. Rates will be applied to accounts in aggregate for each investor.
$5,000 minimum initial investment per account. $250 minimum for additional investments.
You may have multiple custodial accounts. Each account will have it’s own identification.
Effective April 1, 2012, and subject to change.

12. LCMS Foundation Standard Funds
Fixed Income
100% Fixed Income
80% Core Bond
20% High Yield
Bond
Conservative
Balanced
75% Fixed Income
25% Equity
60% Core Bond
15% High Yield Bond
15 % Domestic
10% International
Moderate
40 % Fixed Income
60% Equity
32% Core Bond
8% High Yield
36% Domestic
24% International
Aggressive
25% Fixed Income
75% Equity
20% Core Bond
5% High Yield
45% Domestic
30% International
Equity
100% Equity
60% Domestic
40% International
LCMS Foundation Standard Funds
Core Bond
50% Pacific Investment Management Co. (PIMCO)
50% Prudential Fixed Income
High Yield Bond
50% Fountain Capital Management
50% Fort Washington
Domestic Equity
50% Blackrock
25% Intech – Enhanced investment technologies
15% Jacobs Levy
10% Tamro Capital Partners
International Equity
12.5% Aberdeen Asset Management
33% Blackrock
10% American
16% MFS Institutional Advisors
16% Marathon London
12.5 % OFI Institutional Advisors