Collection › LCMS Convention Workbook (St. Louis, Missouri) › 1969 · 48th Convention › Page 466
LCMS Convention Workbook St. Louis, Missouri — 1969, Page 466

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

466 STEWARDSHIP AND FINANCES; RETIREMENT AND BENEFITS

4. cultivation of a greater mission consciousness and
concern;

5. growth in the grace of Siving, including adequate
support for the God-given mission of the congregation
and its outreach into all the world.

Our church must seriously face this total steward-
ship thrust.
STEWARDSHIP Boarp
BEN Eccers, Chairman
G. FREDERICK SCHROEDER, Vice-Chairman, Secretary
A. LorRENz Grumm, Stewardship Counselor
CHARLES BosmMa
Cari HILyer
PAvuL KOEHNEKE

(12-04)

Report of Board of Trustees for Trust Funds

The Board of Trustees for Trust Funds presents its
regular report covering the 2 fiscal years from Feb. 1,
1967, to Jan. 31, 1969.

The several trust funds under the investment man-
agement of the board have been audited each year by
Tracy B. Whitton and Company, independent certified
public accountants. Their certification and report are on
file in the office of the Treasurer of the Synod.

The Board of Trustees for Trust Funds functions by
authority of Sections 9.21, 9.23, 9.25, 9.27, and 9.29 of the
Synod’s Handbook. The trustees manage the funds in
accordance with written investment principles and poli-
cies revised in July 1968 and approved by the Board of
Directors of the Synod.

The investment policies call for a program that is a
balance between fixed-income securities and equities.
Purchases and sales are programed to maintain an
equity balance between 30 percent and 70 percent in
both pension funds and the LLL Endowment Fund.
Other synodical trust funds have special investment re-
quirements.

The Pension Fund began in October 1937 and has
grown steadily through contributions and accumulations
to a market value of $77,536,445. Exhibit I is a sum-
mary of securities at cost by class of securities for each
of the 2 fiscal years and percentage of holdings in each
class.

The board maintains safekeeping accounts for the
Pension Fund securities at the Mercantile Trust Com-
pany, St.Louis, Mo., and at the Toronto-Dominion
Bank, Toronto, Ont., Canada. The trustees meet at least
six times during the year to consider policy application,
to authorize purchases and sales of securties, and to
consider other matters requiring board action.

The board has worked closely with the investment
section of the Church Extension Department in es-
tablishing criteria for the acquisition of church loans
suitable for investment of funds under its jurisdiction,
recognizing that the basis for such criteria was estab-
lished by the 44th convention of The Lutheran Church
— Missouri Synod.

From Feb. 1, 1967, to the end of the last fiscal year,
Jan. 31, 1969, the Pension Fund holdings in church loans
has increased from $2,345,711 to a total of $5,432,504.

The board continues to use only the highest quality
bonds and church mortgages available for the fixed-in-
come portion of the Pension Fund and only common
stocks of high quality, thus combining yield as well as
growth.

The Lay Retirement Trust, which was started on
Jan. 1, 1948, provides for the funding of the Lay Re-
tirement Plan. Employer contributions and the growth
of the fund combine to meet the future annuity needs of
retirees. As of Jan. 31, 1969, the market value of the
fund was $2,606,691. The same investment principles and
policies apply to this account as apply to the Synod’s
Pension Fund. The portfolio is reviewed at regular in-
tervals and the trustees employ the St. Louis Union
Trust Company as advisers and custodians, Exhibit II
is a summary of securities at cost by class for each of the
2 fiscal years and the percentage of holdings in each
class,

The LLL Endowment Fund was established by the
Lutheran Laymen’s League in 1918, Purpose of the fund
is to assist in paying annuities to retired pastors and
teachers. As of Jan, 31, 1969, the market value of the
fund was $2,964,231. The board applies the same in-
vestment principles and policies to this fund as to the
Pension Fund. The Continental Illinois National Bank
and Trust Company, Chicago, Ill, furnishes investment
advisory and custodial services for this account. All the
income from this fund is used to assist in the subsidy
payments made to retired pastors and teachers. Exhibit
III is a schedule of the securities at cost by class for each
of the 2 fiscal years and the percentage of holdings in
each class.

Prior to Feb. 1, 1968, the combined individual trust
accounts were treated as a single fund known as Sundry
Trusts Fund.

Sundry Trust accounts are comprised of various
funds, gifts, devises, bequests, and annuities, the income
of which is used for a variety of synodical activities such
as missions, colleges and seminaries, and special min-
istries.

As of Feb. 1, 1968, the Board of Trustees put into
effect a new procedure. This was accomplished by the
establishment of three common investment funds in
which each individual fund or trust account is repre-
sented by units of Participation. The three common
investment funds are (1) Fixed Income Account “A”:
(2) Equity Account “B”; and (3) Mixed Account “C.”

All new moneys received after Feb. 1, 1968, for the
various trust accounts are invested in either Fixed In-
come Account “A,” or Equity Account “B,” or a com-
bination thereof as determined by the Board of Trustees
to best serve the purpose of the individual trust.

As of Feb. 1, 1968, all of the assets then contained
in the Sundry Trusts Fund became assets of the common
investment fund Mixed Account “C.” Most of the in-
vestments in the common fund Mixed Account “C”
(formerly Sundry Trusts Fund) were made prior to