LCMS Convention Proceedings St. Louis, Missouri — 1981, Page 164

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164

RESOLUTIONS
1980—15.7% 1974 (04 3) 1969(i 3% — Common Fund Regulated & Trans.
1979—9.55% 1974—(24.3)% 1 —(1.6 _
1978—7.9% 1973—(21.4)%  1968—4.4% Common Fund Natural Resources anid
1977—(2.7)% 1972—19.81% 1967—6.7% Processing
1976—20.3% 1971—20.0% 1966—(0.3)% Fiduciary—Examples of Common Stock

The above investments are comparable to what has
been achieved for other retirement funds as evi-
denced by review of a study conducted by A. S.
Hansen, Inc., which reported on the performance of
250 managers investing a total of $40 billion.

. Who exactly does the investing?

Morgan Guaranty Trust Co. and Fiduciary Trust
Co.

. Upon whose counsel are investments made?

Morgan Guaranty and Fiduciary Trust Company
invest the funds within the investment objec-
tives, asset strategies, and performance targets,
established by the Board of Managers.

. What professional investment firms and counselors

are being utilized?
Morgan Guaranty and Fiduciary Trust Co. are
the investment managers employed by the Board
of Managers. Investment counseling is provided
to the Board of Managers by Merrill Lynch and

Meidinger and Associates Asset Planning 7

Services.

. Are there possible conflicts of interest between

investors and investments?
No.

. What are we investing in? Please be specific.

Morgan Guaranty Examples

— Common Fund Money Market Liquidity 9

— Common Fund Bonds—Private Placement
— Common Fund Mortgage Real Property
— Common Fund Bonds—Medium Term
— Fixed-Public Utilities
American Tel & Tel
Commonwealth Edison
— Fixed Gas and Pipeline
Colonial Pipeline
Sohio Trans Alaska
— Fixed-Finance and Bank
Montgomery Ward Credit Corp.
NCNB Corp.
— Fixed-Investment & Misc.
Anaconda Co.
Honeywell, Inc.
— Fixed Canadian
Province of Manitoba
Quebec Hydro Electric
— Common Fund Special Situation—
Convertibles
— Common Fund Special Situation—
International Fixed
— Common Fund Special Situation Invest-
ments International Equities
— Common Fund Special Situation Invest-
ments—Equities
— Common Fund Consumer & Service Co’s.
— Common Fund Tech. & Machinery

11.

. Does the Synod or anyone else have the right’

. Have loans been made from the retirement portfolié

. Are government regulations for pension funds beit

10.

United Banks of Colorado

Foster Wheeler

Exxon Corp.

Cities Serv.

Panhandle Eastern Pipeline

Tenneco

CPC Intl., Inc.

Central Soya, Inc.

Syntek Corp.

American Hosp. Supply

Int'l. Minerals & Chemical Corp.

TRW, Inc.

Burlington Northern

Mo. Pac. Corp.

Santa Fe Inds., Inc.
Fiduciary—Examples of Fixed Income

Gen. Motors Accep. Corp.

Hudson Bay Co.

Inland Special

J. C. Penney

borrow retirement funds, and at what interest rat
No. This would be a “prohibited transaction” p
Section 503 of the Internal Revenue Code. .

To whom? In what amount? At what interest r ral
No. :

followed?
Yes, The Concordia Retirement Plan is a “qual
ified plan” under Section 401(a) of the Inter
Revenue Code. The plan is not subject to th
Employee Retirement Income Security Ac
(ERISA), but provisions regarding fiducia
responsibility are followed.
Why no plans or thoughts, in an age of double-digi
inflation, to indexing benefits to adjust for inflati
The government and other institutions are doin
such. Must the church be the last to care for its own

The possibility of indexing postretirement in
creases to inflation have constantly bee:
viewed. Cost factors are prohibitive—e.g., a 69
automatic adjustment would require a 909
increase in the contribution rates—as calculate
by the plan’s actuarial firm. Only the gove 4
ment can grant increases and not fund the c
The objective of the Board of Managers
provide ad hoc increases—e.g., Jan. 1, 1982—
when the increases can be funded and
stability of the plan can be maintained. :
Why continue with the “antique” formula of 2
percent for housing and utilities?
On a national basis the formula of 25% of
compensation for housing and utilities furnishet
has been determined to still be common: for