1 / 20

Knights of Columbus

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

charisse-lennox
Download Presentation

Knights of Columbus

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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) • A.M. Best said that “The ratings of the Order reflect its strong fraternal and • Insurance presence within the Catholic communities in the United States and • Canada, its superior risk-adjusted capitalization as measured by Best’s • Capital adequacy Ratio and the Order’s consistently positive operating • results.” A.M. Best also declared that the Knights of Columbus “has a strong • affinity with its large membership base through its charitable programs and • competitive portfolio of life insurance and annuity products.” 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 CDs 2) Tax-deferred, 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 * - 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’? • Do you qualify for a ROTH IRA with income tax free growth? • Is tax deferral important to you? • When does your next CD mature?

More Related