What is the Congregational Investment Trust (CIT)?
The CIT was created in 1991 as an endowment trust for donor gifts and contributions to the National Association of Congregational Christian Churches. Several years later the Trust was reconstituted as a separate 501(c)(3) organization and opened to member churches as a vehicle for their endowment gifts. Endowment gifts are long-term by definition and are invested to preserve the purchasing power of gifts made. The CIT pursues this investment objective through a diversified portfolio of stocks, bonds, and alternative investments, using a moderately balanced allocation of approximately 60/40 (stocks/fixed income). The Trust should not be used as a short-term or money market vehicle as principal values will fluctuate.
How is the CIT different?
One important difference is the multiple levels of supervision and management of assets. The first level is the management of fund assets by investment specialists (fund portfolio managers) selected to maximize the financial return in their defined style of management. For equities, mutual funds and exchange-traded funds (ETFs) are used. For the fixed income portion, Associated Wealth Management, Green Bay, Wisconsin, serves as the manager. The second level of management is the selection and monitoring of equity funds/ETFs by the professional investment advisor, Associated Wealth Management, Milwaukee, Wisconsin. The third level is pure supervision by a group of individuals from member churches from across the country. These individuals, most of whom have backgrounds and experience serving as corporate fiduciaries, oversee the CIT program by reviewing reports and meeting with the investment advisor quarterly. These multiple levels of management and supervision provide a discipline over the investment process to insure against unnecessary risk to the assets entrusted to the CIT.
Another difference is the institutional nature of the portfolio. Using multiple investment specialists to maximize return without taking on unnecessary risk is a strategy few individual churches have the skill or money to pursue. Also, some of the funds that are employed have minimum deposits of $1,000,000 or more. Generally speaking, institutional investing offers greater access to investment specialists and lower fees.
A third difference is the availability of two investment options: Total Return Portfolio and Socially Aware Portfolio. While the Total Return Portfolio places no social restrictions on investments, the Socially Aware Portfolio focuses on both financial return and social good. In the latter Portfolio, the Investment Advisor selects funds it believes favor environmental stewardship, consumer protection, human rights and diversity.
What benefits does the CIT offer?
1. Multiple investment managers/specialists not always available to individual churches
2. Competitive, often lower, cost structure
3. Selection of funds by Professional Investment Advisor
4. Consistent fiduciary oversight by experienced Investment Advisory Committee
How will we have access to our funds invested in the CIT?
The custodian, Associated Wealth Management, values all accounts on the last business day of each month. The custodian must receive requests for withdrawals, either partial or complete, no later than the last business day of the month for the distribution to occur as of that month-end valuation. In addition, a predetermined dollar amount can be distributed on a regular basis. Generally, all distributions will be made within seven business days following the month-end valuation. Requests for distributions must be received in writing, regular mail or by email, by the custodian, Associated Wealth Management, Attn. Peggy Bast, 330 E. Kilbourn Ave., Suite 375, Milwaukee, WI 53202, peggy.bast@associatedbank.com
How is our account balance reported?
Participating churches will have a separate account balance for each fund it wishes to maintain. There is, however, a minimum initial balance of $2,500 and a minimum account balance of $1,000. Statements as of each calendar quarter end will be mailed/emailed to the church. Statements will report the beginning balance, additions/withdrawals, net earnings, and ending balance.
What are the costs and how are they paid?
All fees and expenses to include mutual fund fees (expense ratios), recordkeeping, custodial, investment management, and investment advisory are charged against the earnings of the Trust and thus shared proportionally by all accounts. Total fees, including imbedded mutual fund fees, are about .80 basis points, or .80% of the market value of the Trust. The latest Investment Summary Report will provide you a current expense ratio for the portfolio.
How do we participate?
The church must adopt the Congregational Investment Trust Adoption Agreement and execute the Account Registration Form. These forms can be obtained from the NACCC office by calling Dan Drea at 800-262-1620 or emailing him at ddrea@naccc.org. For investment questions, please call Rick Bauzenberger, Investment Advisory Committee Chair at 262-241-0852
Congregational Investment Trust Brochure