The Episcopal Church Foundation in West Texas
Statement of Information
For complete information
visit the Foundation website
at
http://www.foundation-dwtx.org
Background
The Episcopal Church Foundation in West Texas is a Texas Non-Profit Corporation that is exempt from federal income tax under Section 501(c)(3). It is a charitable religious organization governed by a Board of Directors that includes the Bishop of the Episcopal Diocese of West Texas. Its Executive Director and staff manage the Foundation’s daily activities.
The Foundation was created by the Diocese to invest and manage its funds, to be an investment resource to churches and institutions of the Diocese, and to encourage and promote legacy stewardship within the Diocese.
Investment Objectives
Investment objectives are established for each Foundation account based upon the account's purpose. Accounts are classified into one of four model portfolios that cover a broad range of risk and reward characteristics. These are:
This portfolio is invested to provide current income with very low expected volatility. It is designed for a short investment horizon or other special situation requiring relatively low risk.
This portfolio is invested to focus on current income with a very modest opportunity for capital appreciation. It is designed for an intermediate investment horizon with only modest volatility expected.
This portfolio is invested to achieve a reasonable balance between income and capital appreciation. It is designed for a long-term investment horizon with annual volatility expected.
This portfolio is invested to focus on achieving capital appreciation. It may experience increased levels of short-term volatility and is suited for a long-term investment time horizon. Diversification and the use of fixed income securities are used to manage risk.
Risks
There are risks associated with all investments. The value of an investment may fluctuate and at times the current value of an investment may be less than the amount of the original investment. It is generally agreed that the risks of equity investments (stocks) are greater than those associated with fixed income investments (bonds). It is also generally agreed that, over the long term, the total return generated by equity investments should be greater than that generated by fixed income investments.
The Foundation can provide no guarantee that either the investment objective for a particular account can be achieved or that the value of an account will not decline.
Investment Managers
The Foundation uses third party mutual funds as its investment managers. These mutual funds are selected with the assistance of Consulting Services Group, an independent investment consulting firm with over 90 clients representing in excess of $27 billion in assets. Funds are selected based upon their investment style, size, manager tenure, longevity, historical performance, and other factors.
Separate Accounts
The Foundation maintains a separate account for each of its investment accounts—that is, none of its accounts are pooled together. Each account is maintained at Frost Brokerage Services, Inc., a registered broker/dealer, which provides custody and transaction services to the Foundation.
Individual churches and other Diocesan institutions investing through the Foundation retain full discretion regarding distributions (payments) from their separate investment accounts, subject only to any governing documents (such as donor instructions, Trust instruments, etc.) that may pertain to a particular account.
Expenses
Churches and Diocesan institutions make no payments to the Foundation for services it provides. The mutual funds’ managers charge expenses and management fees and these are paid by the mutual funds so that the investment performance of the funds is net of such expenses and fees.
Reporting
In addition to monthly statements provided by Frost Brokerage Services, churches and Diocesan institutions receive a quarterly report from the Foundation. This quarterly report will include investment performance and other information.
