Parish Investment Management Application
DONATIONS & BEQUESTS FOR CHURCH PURPOSES, INC.
The Episcopal Church in Connecticut (“ECCT”) established “Donations and Bequests for Church Purposes, Inc. “D&B” to provide fiduciary oversight and investment management services for endowments of ECCT Parishes, Worshiping Communities and affiliated Institutions. The Trustees have engaged the US Trust division of Bank of America Private Bank to provide investment management services that comply with D&B’s Investment Policy Statement.
D&B provides personal concierge-based services to each of its participants, providing high-quality client service that is responsive, timely, and wherever possible, proactive. The Secretary of D&B will work with the participants in the onboarding process to facilitate a seamless transition and serves as a liaison between the participants, board of Trustees and Investment Advisors. In addition, we provide archival serves for the preservation of historic documents.
The 2019 Parochial Report data indicates that of the 156 Parishes, 142 reported investment holdings, totaling $207,825,590. Of that, as of 2019, assets under management by Donations and Bequests for Church Purposes, Inc. were 137.8M from the Episcopal Church in Connecticut, Worshiping Communities, and affiliated Institutions.
THE EPISCOPAL CHURCH IN CONNECTICUT POLICY:
The Episcopal Church Canon I.7.1 (b) requires that ECCT Parish investments not managed by D&B must be approved in writing by ECCT’s Finance Committee or its Canon for Finance and Operations.
ECCT Canon IV.2. (a) requires approval of Bishops and Finance Committee for deposit of parish investments outside of D&B.
The canons were established to ensure the due diligence, “prudent person” and the long-term sustainability of the Parish’s, Worshiping Communities, and Institutions affiliated with ECCT. To obtain the approval to manage your assets outside of D&B the following must be demonstrated.
THE PARISH MUST DEMONSTRATE A WELL-QUALIFIED AND ACTIVE FINANCE COMMITTEE:
Vestries that rely on investment management guidance from their Finance Committees ultimately retain the responsibility to adhere to the “prudent investor” standard of care. For this reason, we recommend at least 51% of the voting members of the Finance Committee be current vestry members.
- The committee must consist of at least three unrelated parishioners with extensive educational, professional, or personal experience in finance and investment management.
- The committee must meet at least on a quarterly basis with the investment advisors/manager.
- In addition to the committee members, the Rector/Priest-In-Charge and Wardens serve as ex officio voting members of the committee.
- The committee must adopt a Finance Committee Charter that is approved by the Vestry. The charter must state the purpose and scope of its authority, governance structure, endowment management practices and permissible investment vehicles.
- The committee must adopt an Investment Policy Statement. The statement must be a comprehensive statement, dedicated to both the formation of a portfolio, spending policy and the systems that monitor and measure the managers and the portfolios long-term sustainability.
- The committee must adopt a Conflict of Interest Policy and all voting members of the committee must sign off on it to ensure that dissonance is averted.
- No Finance Committee member, immediate member of a Finance Committee member’s family or personal associates of Finance Committee members should benefit directly from the placement of endowment funds.
INVESTMENT ADVISORS/MANAGMENT FIRMS WITH:
- Publicly available audited annual financial statements.
- Publicly available ADV SEC Filing or the SSAE 16
- Established investment management track record of at least 20 years.
- Substantial assets under management (at least $10B).
- With no vested interest in the parishes, assets.
- Serves as a Co-Fiduciary