# LCMS Convention Proceedings_St. Louis Missouri_1953_S477
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

FINANCIAL MATTERS 477

obligations of the U.S. Government. The Pension Fund
reached this point, and the Committee is planning to
.S. Government Bond holdings in the other Trust Funds
..minimum requirements when money for investing is
This long-range policy should increase the earnings of
Funds, if the trend of higher interest rates continues.
‘difficult problem of investing money under the very con-
@ rules and regulations governing Synod’s Trust Funds
iD “maintain net earnings for the Funds, excluding the Lay
‘ent Fund, at the rate of 24% annually or better, has been
ecause of a slow but steady rise in interest rates and in-
“increments on U.S. Savings Bonds. In 1949 and the first
fi 1950, on the average, U.S.Government Bonds yielded
8%, and other high-grade bond investments yielded ap-
ately 2.64%. Today, these same investments can be pur-
» yield 2.90% and 3.20%, respectively. This improvement
rest rates and increased increments on U.S. Government
Bonds has increased the earnings of all Trust Funds. In
-year ended January 31, 1953, the Pension Fund earned
he L.L. L. Endowment Fund 2.76%, and the Sundry Trust
%, the Lay Retirement Fund 2.29%. The low percentage
gs of the Lay Retirement Fund is due to the fact that the
Rportion of the investments is represented by U.S. Savings
‘Series F, which are less than five years-old. The earnings
Bonds, of course, will improve as they grow closer to
d should increase the income of this Fund in the future
‘line with the other Trust Funds.
! @ Investment Depreciation Reserves of the Trust Funds are:
dowment Fund 3.99%, Sundry Trust Fund 2.78%, Pen-
Lay Retirement Fund is less than 1% of invested capital.
Trust Funds Committee believes it to be prudent invest-
at gement to increase the Investment Depreciation Re-
“of the Pension and Lay Retirement Funds, which is in-
sup to at least 24%% of invested capital. When these

e 1950 re report, your Board gave a valid reason for refusing
‘Trust Funds, particularly Pension Fund money, in Church
pn loans. Since then, it has been suggested by several

t we reconsider our decision with a view toward invest-
bstantial part of Pension Funds for Church Extension
our Committee is still of the opinion that we cannot
nd Trust Funds for this purpose, and we shall continue