Diocese of Fond du Lac Common Trust Fund
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Diocese of Fond du Lac

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Common Trust Fund

Contact: Diocesan Office diofdl@diofdl.org

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A stewardship opportunity designed for income and growth of the church's investments.

The Diocesan Common Trust

The Diocesan Common Trust (DCT) is designed as a pooled investment fund to provide regular income as well as see investment growth over time, especially for participants who may not have the specialized knowledge or expertise for managing investments. A congregation, organization or any other entity of the Diocese of Fond du Lac is able to invest. Individuals are not able to invest personally, but are encouraged to contribute to DCT funds held for the benefit of a congregation, church organization or diocesan entity.

By pooling assets, the DCT is able to invest more effectively and efficiently than participants on their own. All investments benefit from economies of scale regardless of the amount. The DCT market value is large enough to decrease the overall administrative fee and increases the DCT's 'purchasing power'.

Oversight

Oversight is provided by the Trustees of the Diocese working with the investment advisors at JPMorgan.

Investment Strategy

DCT assets are pooled and accounted for on a participant basis, similar to the functioning of a mutual fund. Investment decisions and strategies are reviewed regularly, adjusted toward the best mix of equities, bonds and alternative assets to maintain steady income and investment growth, as compared to inflation, while allowing for fluctuating market conditions.

Participants may select to receive a distribution of 1% of the market value each quarter. When such distribution is not selected, invested assets remain in the account to achieve maximum growth.

Performance Summary

1 year 2014 2013 3yr 5yr Since
Inception (1991)
Average Inflation
Rate (since 1991)
Total Return (net of fees) 5.7% 3.0% 11.0% 6.7% 5.7% 5.8% 3.2%
The Diocesan Common Trust is designed to provide a regular income and investment growth with minimal participant effort. Strategies employed focus on retaining value so will tend to result in the highs not being as high as other funds, but the lows will not be as low as other funds.

Performance

Over the last two decades, DCT performance (net of fees) has exceeded inflation, kept pace with key market indexes and provided steady income to participants. Past performance does not guarantee future results. An example. If a $10,000 investment made ten years ago had no additional contributions or withdrawals, the market value today would be around $12,000 (more 'buying power' vs. inflation) and total distributions over the decade would have been around $4,300.

Administration

The Diocesan Office administers the DCT as a no fees service. Establishing, contributing to or withdrawing from the DCT is processed through the Diocesan Office and may be done at any time. JPMorgan charges management fees to each fund on a pro rata (proportional) basis. Current fees are less than 0.6% per year. Neither the Trustees nor the Diocesan Office receive fees for their oversight or administration.

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