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Knights of Columbus

Knights of Columbus. Investment review 2012. Our Commitment to You.

carolyn-foster
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Knights of Columbus

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  1. Knights of Columbus Investment review 2012

  2. Our Commitment to You “We do not invest in high risk vehicles such as derivatives and junk bonds, nor do we invest in the types of structured transactions that are currently causing such turmoil in the markets. We stay away from them not because we don't understand them - but because we do understand them - and the risk they entail.” Carl Anderson, Supreme Knight

  3. WHAT WE DO: The Investment Department focuses on the purchase of: • Investment grade corporates, across all market sectors • Investment grade mortgage securities issued by agencies and mortgage companies • In addition, we focus on asset allocation and assist in the development of new products WHAT WE DON’T DO: • Invest in junk bonds • Invest in derivatives • Invest in highly speculative or highly structured Wall Street driven transactions • Our focus is on investing in high quality securities

  4. All investment managers for the Order are prohibited from investing in companies engaged in any of the following activities: Embryonic Stem Cell Research Human Cloning Pornography Abortifacient Contraception For Profit Health Care

  5. GROWTH OF ASSETS $19,402 $9,958 $4,076 • Average Annual Growth Rates: • 1 Year 10 Years20 Years • Life & Other 6.8% 6.5% 7.9% • Annuities 10.1%8.2% 8.7% • Total 7.6% 6.9% 8.1%

  6. DIVERSIFICATION OF ASSETSYEAR-END 2012 Total Assets: $19,401 (MM)

  7. BONDS $16.8 Billion 86.6% • Agenda: • Investment Process • 2012 Activities • Diversification & Quality • Securities Lending

  8. SUMMARY OF 2012 BOND HOLDINGS* (Dollars in Millions) *No foreign exchange adjustment

  9. PREFERRED EQUITY 3.09% • Agenda: • Top holdings • Diversification • Returns

  10. COMMON STOCKS* 2.39% • Agenda: • Management Platform • Results * Includes SSGA Canadian Account

  11. REAL ESTATE $241.5 Million 1.24% • Agenda: • ChurchLoan Program • Real Estate Funds

  12. GROSS INVESTMENT INCOME* * INCLUDES INTEREST MAINTENANCE RESERVE (IMR) (Dollars in Millions)

  13. ANNUALIZED GROWTH OF NET INVESTMENT INCOMEFIVE YEARS ENDING 2012 * Peer group: Massachusetts Mutual, New York Life, Northwestern Mutual, State Farm and TIAA . USAA was excluded as their results, +11.32% for the five year period, is an outlier which skewed the peer numbers.

  14. GROSS INVESTMENT YIELD* * Gross Investment Yield = Gross Investment Income/Average Assets

  15. TOTAL CAPITAL AND SURPLUS* * Includes Surplus, AVR and IMR (Dollars in Millions)

  16. KNIGHTS OF COLUMBUSACHIEVES HIGHEST RATINGS IN 2012: • A.M. Best A++ (Superior) • “…evolving fraternal programs in other countries such as Mexico, Poland and the Pacific Rim territories and the Philippines which could add to new membership growth going forward.” • “The Order’s level of risk adjusted capitalization is superior…” There is no more highly rated life insurer in North America

  17. The benefits of a Knights of Columbus retirement annuity: Fees: No up front sales charge or annual fee Access: 1) Annual free withdrawals (10% of account balance per year) 2) Medical Withdrawal Option (FPA Contract) 3) Guaranteed income for life (with annuitization) 4) At death… ► avoids costs and delays of probate ► privacy protected, no public record ► reduces challenge potential Rate: 1) Competitive with GICs 2) Monies can be tax-deferred if used as an RRSP, so compounds at higher rate while reinvesting (grows at full pre-tax rate) 3) Minimum interest rate guarantee, credited daily (worth more every single day*) Safety: Principal & Interest 100% guaranteed by the Knights of Columbus (will never go down in accumulation value*) ► Financial strength of the Knights of Columbus (rated A++ by AM Best) * - reducing surrender charges may apply

  18. Key Questions • What is your planned retirement date? • What part of your retirement funds should be in more conservative types of investments? • Do you currently have any monies that should be ‘rolled over’? • What amount of money do you normally contribute to your RRSP each year? Your TFSA? • Do you have any monies in a Locked-in Retirement Account (LIRA)? • When does your next GIC mature?

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