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General Overview
November 15, 2018
When considering investing your assets, people of faith, Catholic parishes, schools and Catholic organizations are often confronted with a dilemma. How do I invest my funds in a morally and socially responsible way and still receive competitive returns? How can I trust that the companies I place my assets with will invest them in ways that benefit and strengthen my Catholic community?
The Answer: Catholic Community Foundation delivers competitive
investment returns with Catholic Social Responsible Investing
Catholic Community Foundation (CCF)
• OUR MISSION: Receive, manage, safeguard and grow investments; support organizations and donors aligned with the tenets of our Catholic faith
• OUR VISION: Offer a vehicle for Catholic parishes, schools, universities, religious orders, agencies, and philanthropists to invest funds that are professionally managed to achieve desired risk-adjusted returns in strict accordance with our faith, and to strengthen the Catholic community
• OUR SERVICES: Endowments, Investments, Donor Advised Funds, and Planned / Estate Giving
• OUR GOALS: Competitive returns through Catholic Socially Responsible Investing
• OUR RESULTS: Investment returns are in line with benchmark index returns Over $2M Endowment grants distributed in 2018
• Our Leadership - The CCF is led by a group of visionary Catholic priests, business, and community leaders who provide morally responsible, professional and effective financial management for our Catholic institutions
• All investments are guided by the United States Conference of Catholic Bishops statement on Socially Responsible Investment Guidelines
• Members are assured that their funds are managed in strict accordance with our faith All funds are over 99% aligned with Catholic Socially Responsible Investment
Guidelines
Leadership & Socially Responsible Investing
BOARD OF DIRECTORS AND TRUSTEES OFFICERS
Stephen M. Dufilho Ray E. Berend George J. Person Eric C. OpielaCHAIR VICE CHAIR SECRETARY TREASURER
Most Rev. Gustavo García-Siller, M.Sp.S. Bishop Michael Boulette METROPOLITAN ARCHBISHOP OF SAN ANTONIO, AUXILIARY BISHOP OF THE ARCHDIOCESE OF SAN ANTONIOEX-OFFICIO MODERATOR OF THE CURIA, ARCHDIOCESE OF SAN ANTONIO,
EX-OFFICIO
TRUSTEES Very Rev. Lawrence J. Christian Frank M. Kudla, Jr. Martha D. Leiper
Investment Committee ChairRev. Martin J. Leopold Mona C. Mengler Rick Molina Paul Olivier Vivian M. Vance
STAFF AND ADVISORSSteve Oswald Rachel Babcock Sendero Wealth ManagementCEO/PRESIDENT EXECUTVE ASSISTANT FHK, CPA - Auditors
Board of Directors, Trustees & Staff
• The Catholic Community Foundation was established by Episcopal Decree as an autonomous pious foundation on September 21, 2006 at San Fernando Cathedral and incorporated as a non-profit organization in the State of Texas
• The Catholic Fraternity Fund is a wholly owned nonprofit subsidiary of the Catholic Community Foundation for the Roman Catholic Church of the Archdiocese of San Antonio to provide Investment Funds for Catholic organizations
• The Catholic Community Foundation and Catholic Fraternity Fund primarily serve Catholic organizations with the Archdiocese of San Antonio area. Similar other Catholic Community Foundations support their local diocese
• The Catholic Community Foundation works to connect generous donors with the emerging and existing needs of Catholic communities, ministries and organizations. When individuals choose to donate to the Catholic Community Foundation, they can designate where they would like their money to go, i.e. to one of the many existing CCF Endowment Funds or to a new CCF Endowment Fund that they establish
Our History
Catholic Community Foundation
• ENDOWMENT FUNDS
• DONOR ADVISED FUNDS
• PLANNED / ESTATE GIVING
• CONSULTATIONS
Catholic Fraternity Fund
• INVESTMENT FUNDS
Our Services
• Are permanently restricted funds managed by the Foundation in perpetuity. The Funds, which can be named for your organization, can be of any amount over $10,000. The Funds will be permanently endowed in order to ensure the sustainability of the stated purpose
• Provide for future income – i.e. set annual distribution of three-year average market value of the account, or all dividend and interest income, etc.
• Provide an easy path for future contributions to the Endowment fund
• Individuals may open Endowment accounts to benefit a Catholic parish, institution, school, agency or ministry
Endowment Funds
• Provides for the future sustainability
• Helps raise new contributions – increases total donations
• Encourages Planned / Estate Giving donations
• Cannot be undone by future administrations
• Assists with legal protection from creditors
• Provides a steady, predictable and growing source of funds each year
• The gift that keeps on giving
Endowment Funds
TOTAL BY YEAR
YEARS: 1 2 25 50 100 100
New Donations $ 10,000 10,000 10,000 10,000 10,000 1,100,000
Income & Market Gains (6%) $ 6,600 7,596 31,028 72,937 260,442 9,362,080
Withdrawals to your purpose (4%) $ 4,664 19,445 46,819 169,291 6,030,230
Market Value $ 116,600 129,532 528,714 1,241,741 4,431,850 4,431,850
Year 100 - $1.1M investment has returned $6M to your purpose and has Market Value of $4.4M
Illustrative View of Endowment funded with $100,000 Year 1; & $10,000 added each year
Illustrative only, actual returns will vary based on investment strategy and market performance
$2,500 BONUS OFFER:
• Establish a new CCF Endowment account supporting a Catholic parish, school, cemetery, religious order, ministry or agency within the Archdiocese of San Antonio
• Bonus is deposited into the new Endowment Account
• Limited to one Bonus per entity
• Bonus provided by generous donors
New Endowment Accounts –$2,500 Bonus – Limited Time Offer
Provides for the Future:
• Provides a steady, predictable and growing source of funds each year
• Some samples of current endowment fund uses:• Ministry support• Facilities/Buildings• New Program • Scholarships• Cemetery• Operations• To be determined in the future
Some Uses of Endowment Funds
• Parishioners can create a permanent legacy of faith, family & future through the establishment of a Donor Advised Fund
• The minimum amount to start a fund is $25,000
• Recommend charitable gift distributions from your account to Catholic parishes, schools, seminaries, apostolates or other nonprofit organizations
• Enjoy peace of mind that your account will be professionally managed bythe Foundation’s morally responsible investment policies
• Receive an immediate charitable tax deduction for each contribution to your account
• Experience the joy of giving while the Catholic Community Foundation handles the paperwork
Donor Advised Funds
• Every Catholic is encouraged to remember the Church in their Planned / Estate Giving through their Last Will and Testament or through other vehicles such as a beneficiary designation (from a retirement plan: (IRA, 401k, 403b, SEP), bank accounts or brokerage accounts), a gift of life insurance, a Charitable Unitrust, or a Charitable Gift Annuity
• Parishioners can leave a legacy for their parish endowment and/or other Catholic endowments. Call the Catholic Community Foundation and we will be glad to assist you in meeting your needs and wishes
• Visit our website to learn more about Planned/Estate Giving opportunities at www.ccftx.org
Planned / Estate Giving
• Do more with your IRA – If you are older than 70.5, you can give up to $100,000 tax free of your IRA annually to charities and endowments
• Avoid capital gain taxes - Donate appreciated assets (stocks, real estate, businesses, etc.) to Charities, Donor Advised Funds and Endowments
• Pass down your charitable giving to the next generations – fund a family Donor Advised Fund and have your children and grandchildren give the funds to charities for many years
• Establish or contribute to endowments with excess assets
Planned / Estate Giving – Late in Life
• Upgrade Planned/Estate Giving Message – newsletters, printed materials, website, social media, annual letter, emails, phone calls, one on one visits
• Zoom in on likely donors (Council members, leaders in the organizations, long time engaged donors with assets, etc.)
• Build a Organization team focused on Planned/Estate Giving and growing the Endowment –recruit Catholic estate attorneys, financial planners and planned givers – CCF can assist you
• Hosts Planned/Estate Giving Workshops/Small gatherings/one on one meetings – potentially also tie in with Catholic funeral planning or Catholic medical decision (Bio-ethics) discussions
• Ensure all Priest, Deacons and Staff have Wills and Beneficiary Designations
Planned / Estate Giving – Ongoing Stewardship
Campaign – ASK for Planned/Estate Gifts
• Offers Three Investment Funds Based on Desired Return/Risk Levels Based on Investment Time Horizons Competitive returns with Catholic Social Responsible Investing
• The Minimum Amount to Start a Fund is $25,000
• Daily Liquidity – Deposits/Withdrawals
Withdrawals settle within two to four business days
• Website with read-only access to account
Yesterday’s closed market values History of statements, performance and transactions
Investment Funds for Catholic organizations
Investment Funds –Updated November 15, 2018
1.5%
23.5%
66%
9%
CCF Endowment/CFF Equity Emphasis Fund
Cash
Fixed Income
Equity
Alternative
5.0%
65.0%
27%
3%
CFF Income Emphasis Fund
Cash
Fixed Income
Equity
Alternative
1.5%
48.5%47%
3%CFF Balanced Fund
Cash
Fixed Income
Equity
Alternative
Investment FundsUpdated November 15, 2018
Description $100,000 or more
Under $100,000 $100,000 or more Under $100,000 $100,000 or more
Under $100,000
Risk Level Aggressive Aggressive Medium Medium Moderate Moderate
Cash 1.5% 1.5% 1.5% 1.5% 5% 5%
Fixed Income 23.5% 23.5% 48.5% 48.5% 65% 65%
Bonds Intermediate Duration 13.5% 23.5% 23% 29% 39% 39%
Bonds Short Duration 15.5% 19.5% 26% 26%
Market Neutral 10% 10%
Equities 66% 75% 47% 50% 27% 30%
Catholic S&P 500 index 40% 48% 30% 33% 17% 20%
Catholic S&P 600 index (small) 8% 9% 5% 5% 3% 3%
International Equities 18% 18% 12% 12% 7% 7%
Alternatives 9% 3% 3%
REITS 4% 3% 3%
Equity Long Short 5%
Time Frames for need of funds Over 6 years Over 6 years Over 5 years Over 5 years Over 3 years Over 3 years
Endowment/Equity Emphasis Fund Balanced Fund Income Emphasis Fund
• Sophisticated local investment advisors: Sendero Wealth Management
• Top notch Investment Committee
• Equities – Christian Brothers Investment Services (CBIS) -100% Catholic SRI
• Passive investments: 52% of the Endowment/Equity Emphasis FundIndex Funds: US Large Cap, US Small Cap, and REITS
• Active managed investments
PIMCO & CBIS Bonds AQR Market Neutral Knights of Columbus Secured Loan Fund (Large Endowments only)
• Annual rebalancing of accounts
• Investment strategy and tactics monitored and periodically updated
3 Diversified Portfolio Funds
InvestmentObjectives:
CompetitiveReturns with Catholic Socially Responsible Investing (SRI)
CBIS International Equity AQR Equity Long Short
Small Transaction Fees
$20 - $67 transaction fee for Equity Emphasis
$20 - $47 for Balanced
$20 - $27 Income Emphasis
is applied to each deposit $10,000 and over, withdrawal and annual rebalance
Money Manager FeesNetted into returns
$100,000 or more:0.53% Endowment/Equity Emphasis Fund0.49% Balanced Fund 0.43% Income Emphasis Fund
Under $100,000:0.42% Endowment/Equity Emphasis Fund0.42% Balanced Fund 0.43% Income Emphasis Fund
Administrative FeesCCF/CFF and Sendero Wealth Management combined
1.25% on the first $1,250,000
1.10% on the next $1,250,000
0.95% on the next $2,500,000
0.70% on the balance
Annual Fees
Current CCF/CFF Funds Annualized Past Returns
(after Money Managers fees/before CCF/CFF fees)vs Benchmark as of 9/30/18
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Endowment/Equity Emphasis 75% E / 25% FI Small Endowment/Equity Emphasis 75% E / 25% FI Benchmark 60% E / 40% FI
1 Year 3 Year 5 Year 10 year Note: Returns are a historical look-back of the current investment fund models and are not representative of a participant's return
Current CCF/CFF Funds Annualized Past Returns
(after Money Managers fees/before CCF/CFF fees)vs Benchmark as of 9/30/18
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Balanced 50% E / 50% FI Small Balanced 50% E / 50% FI Income Emphasis 30% E / 70% FI Small Income Emphasis 30% E / 70% FI
1 Year 3 Year 5 Year 10 year Note: Returns are a historical look-back of the current investment fund models and are not representative of a participant's return
Competitive Returns with Catholic Social Responsible
Investing
CCF Endowment Fund/CFF Equity Emphasis Fund CFF Balanced Fund CFF Income Emphasis Fund Benchmark Index75% Equity/25% Fixed Inc 50% Equity/50% Fixed Inc 30% Equity/70% Fixed Inc 60% Equity/40% Fixed Inc
1 Year 8.2% 1 Year 5.9% 1 Year 3.7% 1 Year 6.7%
3 Years 11.7% 3 Years 8.6% 3 Years 5.8% 3 Years 9.3%
5 Years 9.7% 5 Years 7.4% 5 Years 4.8% 5 Years 7.4%
10 Years 9.0% 10 Years 7.5% 10 Years 6.0% 10 Years 7.7%
Accounts of $100,000 and over Annual Investment Returns after Money Manager Fees, before CCF Management Fees of the current Investment Strategy
Note: Returns are a historical look-back of the current investment funds models (updated 11/15/18) and are not representative of a participant's return.
As of September 30, 2018
Aggressive RiskEquity Emphasis
HURRICANE
LONG TERM FACILITY
MINISTRY SUPPORT
SCHOLARSHIPS
CEMETERY
ENDOWMENT
Some Uses of CFF Investment Funds
Medium Risk Balanced
RAINY DAY
MID TERM FACILITY
EXTRA CASH
SAVINGS
Moderate Risk Income Emphasis
EMERGENCY
MID TERM FACILITY
BUILDING CAMPAIGN
Cash / Investment Management – Optimizing Mix
Money MarketSavingsChecking
CD
Fixed Income
Stocks
0 1 3 6 24 48 60Low Risk High Risk
RETURNS
TIME: MONTHS/RISK LEVEL
What Are Your Needs?
• CCF will provide customized marketing material to support your endowment fund raising efforts – We are here to assist you!
• Marketing Materials provided:• Brochures• Fund raising letters• Posters• Parish bulletin messages and inserts
CCF Marketing Material Support
• Presentations• Remittance envelopes• Web updates
• Encourage Planned Giving for local Catholic parishes, schools and ministries and place some of gift (~50%) in the Endowment • Last Will and Testament• Beneficiary Designation:
o Retirement Fund (IRA, 401k, 403b, SEP)o Bank and Brokerage Accountso Life Insurance
• In lieu of flowers
• Grow Endowments through piece of current stewardships
• Sustain the Catholic organization long term in part through ongoing distributions from the Endowment Fund
Vision / Hope: Every Catholic Parish / School / Organization will have an Endowment Fund
THANK YOU!
Steve OswaldCEO/President(210)732-2153
www.ccftx.org www.catholicfund.us
CCF/CFF, 111 Barilla Place, Suite 101, San Antonio, Texas 78209
Statement of Disclosure
• Neither Catholic Community Foundation, Catholic Fraternity Fund, nor the funds are registered as an investment company under the Investment Company Act of 1940 or as an investment adviser under the Investment Advisers Act of 1940.
• Participation in the funds is subject to certain risk factors described in the disclosure statement located at our website www.catholicfund.us
• Investments in the funds are not insured by the Federal Deposit Insurance Corporation (the “FDIC”) or any other governmental agency.
• No guarantee or representation is made that the funds will be successful, and investment results may vary substantially over time.
Appendix
Stephen M. DufilhoChair, CCF/CFF
Board of Trustees& Board of Directors
Investments
Michael S. CiskowskiRetired Executive VP & CFO
Valero Energy Corp.
Elizabeth F. CrawfordAdvisor to the Investment Committee; CEO, Sendero
Wealth Management
Deacon Harry M. FlavinPast Chair,
Investment CommitteeManaging Director with
Avalon Advisors, LLC
Martha D. LeiperChair, Investment Committee
Senior VP, Corporate Controller, USAA
Mark P. MaysPrincipal,
Rocking M Capital and Mays Family Enterprises
Steve OswaldCEO/President,
CCF/CFF
The Investment Committee
Richard C. DietzRetired AT&T Officer, Past Board Secretary
CCF/CFF
• Receives advice from hired Investment Advisor, Sendero Wealth Management
• Investment Strategy
• Asset Allocation
• Manager Selection
• Funds Allocations
• Performance of Managers and Funds
• Socially Responsible Investing with Catholic Restrictions
Work of the Investment Committee
Competitive Returns with Catholic Social Responsible
Investing
CCF Endowment Fund/CFF Equity Emphasis Fund CFF Balanced Fund CFF Income Emphasis Fund Benchmark Index75% Equity/25% Fixed Inc 50% Equity/50% Fixed Inc 30% Equity/70% Fixed Inc 60% Equity/40% Fixed Inc
1 Year 18.2% 1 Year 13.6% 1 Year 9.2% 1 Year 15.2%
3 Years 9.5% 3 Years 7.2% 3 Years 4.6% 3 Years 7.2%
5 Years 11.7% 5 Years 8.7% 5 Years 5.4% 5 Years 8.8%
10 Years 6.9% 10 Years 6.2% 10 Years 5.3% 10 Years 6.1%
Accounts of $100,000 and over Annual Investment Returns after Money Manager Fees, before CCF Management Fees of the current Investment Strategy
Note: Returns are a historical look-back of the current investment funds models (updated 11/15/18) and are not representative of a participant's return.
As of December 31, 2017
TOTAL BY YEAR
YEARS: 1 2 25 50 100 100
Income & Market Gains (6%) $ 6,000 6,360 10,201 17,072 47,810 2,046,046
Withdrawals to your purpose (4%) $ 4,240 6,663 11,151 31,228 1,332,628
Market Value $ 106,000 108,120 173,560 290,449 813,418 813,418
Year 100 - $100K investment has returned $1.3M to your purpose and has Market Value of $813,418
Illustrative View of Endowment funded with $100,000 Year 1; & no additional funds added
Illustrative only, actual returns will vary based on investment strategy and market performance
Managed Endowment Funds
Catholic Parishes• Archdiocese of San Antonio poor parishes
• Church of the Holy Spirit Catholic Church
• Holy Redeemer – St Peter Claver Cemetery
• Immaculate Conception of the Blessed Virgin
Mary, Panna Maria, TX
• Notre Dame Catholic Church, Kerrville, TX
• Our Lady of Grace Catholic Church
• Our Lady of Guadalupe Shrine Catholic Church
• San Fernando Cathedral
• Sacred Heart Catholic Church, Del Rio, TX
• St. Anthony de Padua Catholic Church
• St. Francis of Assisi Catholic Church
• St. Joan of Arc Catholic Church
• St. Joseph Catholic Church (downtown)
• St. Joseph Catholic Church, Dilley, TX
• St. Mark the Evangelist Catholic Church
• St. Mary Catholic Church, Stockdale, TX
• St. Peter Prince of the Apostles Catholic Church
• St. Pius X Catholic Church
Catholic Schools• Antonian College Preparatory High School
• Central Catholic High School
• Hope for the Future Catholic Schools
• Incarnate Word High School
• Notre Dame Catholic School, Kerrville, TX
• Sacred Heart Catholic School, Uvalde, TX
• Sacred Heart Catholic School, Floresville, TX
• St. James Catholic School, Seguin, TX
• St. Luke Catholic Church in Brownsville, TX for
scholarships for past altar servers
• St. Pius X Catholic School
Catholic Ministries and Social Services• Archbishop José H. Gomez ministry
• Archives of the Archdiocese of San Antonio
• Catholic Cemeteries of San Antonio
• Catholic Charities Archdiocese of San Antonio, Inc.
• Catholic Charities Guadalupe Community Center
• Catholic Community Foundation Operations and
Ministry fund
• Catholic Community Foundation Operations
• Catholic Community Foundation unrestricted
general fund
• Catholic Television of San Antonio (CTSA)
• Friends of St. Peter-St. Joseph Children’s Home
• Our Lady of Guadalupe Shrine Social Services
• Old Spanish Missions
• Seton Home
• St. Louis Cemetery, Castroville, TX
• Veronica Nicole Finnie’s Foundation for Family and
Children
Catholic Priests and Seminary• Archbishop Flores for Endowment of Priests
• Assumption Seminary
• Assumption Seminary Facilities
• Emery John Opiela Assumption Seminary
• Seminarian Formation
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