Donation & Bequests Information
Why should your parish entrust its assets to D&B?
D&B offers parishes an economical way to access professional investment management services as well as a portfolio of investment options available only to the largest investment funds. The Episcopal Church in Connecticut (ECCT) and participating parishes have collectively deposited over $150 million in assets in the D&B Fund, assuring low management fees for participating parishes. In addition, we have engaged Bank of America a well-known investment management company to provide investment, custodial, reporting and disbursement services to meet the needs of participating parishes. The fund management capabilities of Bank of America are designed to provide superior investment returns in all market environments by actively managing the allocation of fund holdings across different investment asset classes. As is generally the case, with investing in general, securities fluctuate in value over time and are subject to potential loss of value.
Advantages of investing with D&B verses a low index fund:
D&B leverages its size ($150 million) and collective bargaining power to negotiate low management and custodial fees on behalf of all our participants. D&B’s hybrid allocation to active management and index funds enables our participants to earn better than index performance over the long term.
The investment philosophy at Bank of America Private Bank reflects the interests, concerns and circumstances of D&B. Therefore, BofA believes that using multi-asset class portfolios developed to benefit from multiple sources of return may help enable the portfolio and support the mission of D&B. The BofA Private Bank philosophy is to:
• Support the mission for its duration and to earn risk adjusted expected returns.
• Provide diversification subject to the Uniform Prudent Investor Act (UPMIFA).
• Manage liquidity risk, coupled with managing mission risks.
• Balance the need to grow underlying capital with D&B’s distribution obligations.
Diversifying sources of return can help diversify risk. Investment strategies typically incorporate some combination of strategic asset allocation, tactical allocations around strategic targets, and active vs. passive management of asset classes. By diversifying the sources of return, we believe we may diversify the sources of risk to the success of the investment strategy.
Both active and passive strategies typically are appropriate in a portfolio’s investment strategy, but their use should be actively managed. Different market conditions present environments that can be accommodating for active management strategies. Therefore, for D&B’s portfolio objectives, the use of a hybrid active vs. passive strategy enhances the return/risk trade-off.
In addition, D&B maintains records of original donor instructions and assists parishes in keeping faith with these gifts and maintaining trust for those who may consider making gifts in the future.
D&B’s policies are determined by its Board of Trustees, consisting of a minimum of six members plus the ECCT’s Bishops, Treasurer, Chancellor and Secretary of D&B. The Board meets at a minimum four times annually. The trustees manage D&B’s assets in good faith and with “prudent person” care, including oversight of custody of assets and record keeping, investment manager selection, performance monitoring and asset allocation strategies and risk management.
D&B’s Board of Trustees plays a critical role in the evolution and monitoring of D&B’s product and service offerings. The Board’s role includes.
• Establish the Investment Policy Statement to maximize risk-adjusted returns through the development and implementation of a well-diversified portfolio that can meet our client’s annual distribution requirements.
• Build a sustainable surplus; and preserve our purchasing power.
• Customize reporting services to support the participants.
• Select and monitor investment advisors, underlying managers, and custodians.
• Select auditing firm
• Establish an ESG - based investment alternative for our participants.
D&B Trustees have backgrounds in investment management, economics, product and project management and other disciplines relevant to these roles. Please contact firstname.lastname@example.org to see biographical profiles of Trustees of D&B.
The strategic investment model of the Bank of America Private Bank blends the provision of model investment offerings, which are developed and modified centrally, with customization delivered by Portfolio Strategists working directly with D&B.
D&B Trustees specify the asset classes, target asset allocation percentages and permissible ranges above and below the targets. This process is guided by our Investment Policy Statements that are reviewed annually and formally revised or renewed. Our Portfolio Strategist has modified the model investment offerings to comply with D&B’s Investment Policy Statements’ specifications and selects one or more fund managers within the specified asset classes based on Bank of America’s fund and fund manager tracking data base.
Our Portfolio Strategist and their team actively overweight or underweight different asset categories within the permissible percentage ranges over the course of the year based on market dynamics and changes in macroeconomic forecasts. Our Bank of America Private Bank team meets with D&B Trustees and interested representatives from different participating parishes on a quarterly basis to review overall investment performance, market trends and investment strategy, as well as other developments.
The D&B Funds are valued on the last day of each month. Monthly reports are available online and mailed to participants 7–10 business days after the 1st of the month. The reports include information regarding transactions as well as unit and market values for each participant’s account. Monthly investment reports are user friendly and available in Excel as well as a PDF version.
BofA portal affords the participant with the following data analysis snapshot overview of asset allocations, Account History, Performance & Risk and Cash Activity. The static information is accessible since the inception of your account.
For more information, contact:
Theresa Dupont, Director of Operations for Donations and Bequests
203-639-3501, ext. 125