Moneywise: Resources for SDA Treasurers - General Conference...

General Conference of Seventh-day Adventists

Investment Office

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Important Disclosures

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Important DisclosuresThis report is intended solely for institutional use by organizations within the Seventh-day Adventist Church or by investors in the GC Unitized Funds and is for informational purposes only and should not be construed as investment advice. This report is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Past results are not indicative of future investment results. Investments are not guaranteed and you may lose money. This publication is for informational purposes only and reflects the current opinions of the General Conference Investment Office. Information contained herein is believed to be accurate, but cannot be guaranteed. Opinions expressed in this material may be subject to change without notice.This publication has been prepared without taking into account investors’ objectives, financial situation or needs. Before acting on this information, investors should consider its appropriateness having regard to objectives, financial situation or needs. It is the inverstors’ responsibility to be aware of and observe the applicable laws and regulations of their country of residence. Potential investors in emerging markets should be aware that investment in these markets can involve a higher degree of risk. Any forecast, projection or target is provided as an indication only and is not guaranteed in any way.

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GC Investment Office

Mission

Provide Seventh-day Adventist Church organizations, institutions, and related entities, investment services to manage funds entrusted to them by the Lord in order to fulfill the mission of the church to spread the

Gospel to the world.______________________

“Who then is a faithful and wise servant, whom his master made ruler over his household, to give them food in due season? Blessed is that

servant whom his master, when he comes, will find so doing.”Matthew 24:45

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Pensions/Endowments

Long term investments for

pensions and retirement

funding.

Plant / Project Funds

Medium to long term investments to meet the needs

for property maintenance or

project financing.

Operating / General

Medium term investments

focusing on income generation for

operating needs.

Donor Advised

Funds donated by individuals are held for various mission projects as directed

by the donor.

Account Types

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Investment Guidance

Initial consultation and guidance is

provided for SDA entities to develop a sound investment

program.

PortfolioConstruction

Help construct an investment

portfolio that is tailored to the objectives and constrains of

investors.

GC UnitizedFunds

The GCIO manages 18

unitized funds which may provide a solid foundation for an investment

portfolio.

Tactical AssetAllocation

Provide ongoing advice is provided

to make changes to the asset mix as needed as the

market outlook changes.

GCCapitalPreserva.on

Fund10%

GCBondFund16%

GCTotalReturnBond

Fund0%

GCIncomeFund5% GCGlobal

Opportuni.esFund10%

GCLargeCapFund25%

GCSmallCapFund15%

GCInterna.onalFund15%

GCEmergingMarketsFund

4%

LongTermPor9olio

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GC Investment OfficeTim Aka, CFA, Associate Treasurer and Investment ManagerGeneral Conference of Seventh-day Adventists23 years Industry Experience

Tim has spent the past 23 years in the banking and investment industry with the majority of his career focused on investment management at TD Bank in Toronto, Canada. In his position at TD he took a lead role in managing products for TD Wealth Managed Investment Solutions, overseeing $17 billion in assets.

The GC Investment office has 7 investment & finance professionals and staff. They manage $2.3 billion in investments from church clients around the world.

GC Investment Committee (GCIC)

GCIC Chair GCIC Vice-Chair GCIC Secretary GCIC Assoc. SecretaryJuan Prestol-Puesán, PhD G Thomas Evans Tim H Aka, CFA Raymond Jimenez III Treasurer Treasurer Assoc. Treasurer, Retirement Administrator General Conference North American Division General Conference North American Division

Mabio Coelho Markus Czettl William Easterbrook Jermaine Jackson J Raymond Wahlen IIChief Information Associate Treasurer President Chief Financial Officer Under-TreasurerSecurity Officer Inter-European Division Adventist HealthCare Adventist Risk Management General ConferenceGeneral Conference Retirement Plan

Rodney Neal Michael Jamison Byron Schuneman Glynn C W Scott Sr. VP Financial Affairs Assoc. Treasurer Special Assist to the Adm. TreasurerLoma Linda University North American Division Adventist Retirement Plans Lake Union Conference

North American Division

7 General Conference of Seventh-day Adventists Treasury

GC Money FundShort term cash

management

$359,340,072

GC Capital Preservation

FundProtection of

capital plus growth

$178,779,057

GC Bond FundActively managed

core bond portfolio

$166,033,526

GC Total Return Bond Fund

Actively managed global bonds

$98,562,197

GC Income FundActively managed balanced income

fund

$252,930,542

GC Global Opportunities

FundGlobal balanced

growth fund

$172,275,319

GC U.S. Large Cap Fund

Actively managed U.S. Large Cap

portfolio

$200,468,687

GC U.S. Small Cap Fund

Actively managed U.S. Small Cap

Portfolio

$92,010,507

GC International Equity Fund

Actively managed int’l equity fund

$130,059,920

GC Emerging Markets Equity

FundActively managed emerging markets

fund

$76,885,667

GC Opportunistic

Liability Driven Investment

FundSpecialty fund to

manage funds for a pension plan.

$428,267,817

GC Alternative Investment

FundA fund of funds holding several

alternative funds.

$65,623,599

SDA Short Term Bond Fund

Short term bond index fund

$91,732,893

SDA Intermediate Bond Fund

Intermediate term bond index fund

$11,119,512

SDA Total Market Bond

FundTotal market bond

index fund

$192,565,783

SDA U.S. Large Cap Index Fund

U.S. Large Cap Index fund

$503,786,809

SDA U.S. Small Cap Index Fund

U.S Small Cap Index fund

$382,337,839

SDA International Index Fund

International Index fund

$369,119749

GC Funds

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Sub-Advisors

Fixed Income Funds

U.S. Equity Funds

International Equity Funds

Balanced Funds

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Sub-Advisors

Fixed Income Managers

Established 1899$750 Billion in InvestmentsClients: • 68% U.S. • 32% Foreign

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$1.7 Trillion in InvestmentsLos Angeles, New York, London, Munich, Milan, Tokyo, Singapore

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$2.5 Billion in InvestmentsHoward Hughes FoundationKellogg Foundation

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Sub-Advisors

Equity Managers

$753 Billion in Investments

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$62 Billion in InvestmentsLondon, Philadelphia

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$180 Billion in InvestmentsEstablished in 1851

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$535 Billion in Investments48 Offices Globally

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GC International Equity FundUnitized Fund Structure Example

$34,877 , 26%

$51,022 , 39%

$16,925 , 13%

$29,174 , 22%

Fund Structure ($000)

Franklin Templeton Mondrian

Comerica Cash

The fund is made up of severalinvestment strategies managedby several sub-advisors. Thischart shows the breakdown.

This graph show the growth of$1000 invested in the fund since2004, and compares it with thegrowth of the benchmark.

Outline of the investmentobjectives, and as the managersand strategies employed toachieve the objectives.

Investment Objectives & Strategies: • Seeks to provide long term growth of principal through

investment in developed markets’ international equities.• Franklin Templeton: Medium to Large Cap Growth• Mondrian Investment Partners: Large Cap Value, with

emphasis on downside protection• Comerica Wealth Management: International Index Fund

– using MSCI EAFE index• Cash may be held within the fund for safety of principal

when acceptable.

$800.00$1,000.00$1,200.00$1,400.00$1,600.00$1,800.00$2,000.00$2,200.00$2,400.00

10/31/2004

10/31/2005

10/31/2006

10/31/2007

10/31/2008

10/31/2009

10/31/2010

10/31/2011

10/31/2012

10/31/2013

10/31/2014

10/31/2015

10/31/2016

Growths of $ 1000

International Fund MSCI EAFE

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SDAValues Screen

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� GC investment funds are screened for industries and corporate practices.� Industry Screen: Restricted Industries

1. Tobacco manufacturers. (e.g. Phillip Morris, British American Tobacco)2. Alcohol manufacturers and sales (MillerCoors, Diagio, many restaurants chains which

derive a large portion of sales from alcohol)3. Pornography production (no stocks are listed in major exchanges)4. Gambling and gaming companies (Caesars Entertainment)5. Meat product manufacturers and sales (Hormel, McDonalds)6. Caffeinated beverage manufacturers and sales. (Coke, Starbucks)

� ESG Screening: Environmental Social Governance Impact (New process being implemented)1. Eliminate poorly performing companies; repeat offenders; no change in behavior.2. Environmental: BHP Billiton (Mining Practices), Volkswagen (Emissions)3. Social (Worker Exploitation, Community impact): Harmony Gold (South Africa), Grupo

Mexico.4. E.g. Wells Fargo (Fraud), Deutsche Bank (Market Manipulation), Petrobras (Bribery)

� Some public funds and Exchange Traded Funds (ETFs) are used that are not screened. But holdings are reviewed to gauge any major allocations to restricted industries and/or allocations are relatively small.


GC Investment Annualized Performance SummaryAs At September 30, 2017

MarketValue %of 1Mo 3Mo YTD 1Yr 3Yrs 5Yrs 10Yrs ReturnPortfolio (%) (%) (%) (%) (%) (%) (%) (%) Since

GCMONEYFUND $331,714,130 0 0.4 0.6 1 0.1 0.2 0.8 2.1 Dec-9891DayT-Bills 0.1 0.2 0.4 0.5 0.2 0.2 0.4 0.3

GCCAPITALPRESERVATIONFUND $179,172,339 9.6 0.2 1.1 1.5 2.1 1.5 1.1 -- 2 Dec-0791Dayt-Bills 0.1 0.2 0.4 0.5 0.2 0.2 0.4 0.3

GCBONDFUND $164,052,746 8.8 -0.1 1 1.6 0 1.6 1.5 3.6 3.8 Jun-02BBgBarcUSGovt/CreditInt -0.2 0.9 1.7 -0.2 1.9 1.8 3.9 4

GCTOTALRETURNBONDFUND $99,656,889 5.3 1 2.7 4.8 6.4 -- -- -- 3.5 Jun-15BBgBarcUSAggregateTR -0.1 1.4 2.3 -0.3 2.5 2.2 4.5 2.8

GCLONGTERMBONDFUND $20,156,863 1.1 0.1 0.2 0.3 -- -- -- -- 0.3 Dec-16BBgBarcUSCorporateLongAofHigherTR 1.1 4.9 6 1.5 5.7 4.9 7.1 6

GCINCOMEFUND $253,912,280 13.6 0.4 1.8 3.7 4.7 3.2 3.8 3.1 4.5 Sep-01BBgBarcUSCreditIntTR -0.1 1.4 2.5 1.4 2.6 3 4.9 4.9

GCLARGECAPEQUITYFUND $199,949,069 10.7 0.8 2.7 6.5 13 7.2 13.5 6.3 6.7 Dec-96S&P500 0.6 3.1 9.3 17.9 9.6 14.6 7.2 14.3

GCSMALLCAPEQUITYFUND $92,612,104 4.9 0.9 1.4 3.2 15.6 6.2 13.1 5 8.6 Dec-98Russel2000 3.5 2.5 5 24.6 7.4 13.7 6.9 9.2

GCINTERNATIONALFUND $126,600,389 6.8 -1.6 3.6 10.4 12.9 -0.1 7.6 1.2 4.9 Dec-96MSCIEAFE -0.2 6.1 13.8 20.3 1.1 8.7 1 4.7

GCEMERGINGMARKETSFUND $77,345,279 4.1 0.9 4.4 12.3 16.9 -1.7 3.7 1.9 6.8 Dec-96MSCIEmergingMarkets 1 6.3 18.4 23.7 1.1 4 1.9 6.2

GCGLOBALOPPORTUNITIESFUND $168,722,414 9 0.3 2.2 6.9 9.6 0.1 3.3 -- 3.3 Nov-10CPI+5% 0.5 1.7 4 6.7 6 6.4 6.7 6.8

GCOLDIFUND $424,670,010 22.7 0.2 2.1 4.5 4.6 1.3 4.1 -- 6.2 May-09ActuarialAssumedRate=6% 0.5 1.5 3 6 6 6 -- 6

GCALTERNATIVEINVESTMENTSFUND $65,400,400 3.5 0.3 0.3 2.3 5.5 -- -- -- 1.8 Aug-14HFRIFundofFundsCompositeIndex -0.2 0.6 3 6.3 1.5 3.8 0.9 1.4


GC Investment Calendar Year History 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Inception Date

FUND INDEX % % % % % % % % % % % % % Inception DateGC MONEY FUND 1.3 2.9 4.9 5.3 2.9 0.6 0.1 0.2 0.2 0.3 0.1 0.1 0.7 2.1 Dec-98

91 Day T-Bills 1.4 3.2 5.0 4.4 1.3 0.1 0.1 0.0 0.1 0.0 0.0 0.0 0.3 1.9GC CAPITAL PRESERVATION FUND 4.3 5.7 2.4 0.8 2.4 -1.7 1.3 0.2 1.8 1.9 Dec-07

Barclays Intermediate Gov't/Credit 5.1 5.2 5.9 5.8 3.9 -0.9 3.1 1.1 1.3 2.0GC BOND FUND 3.0 2.3 4.5 6.6 2.0 6.1 6.7 6.6 4.3 -1.4 4.6 1.4 2.1 3.8 Jun-02

Barclays Aggregate Bond Index 4.3 2.4 4.3 7.0 5.2 5.9 6.5 7.8 4.2 -2.0 6.0 0.5 2.6 4.5GC TOTAL RETURN BOND FUND 3.3 1.5 Jun-15

Western Total Return Unconstrained Fund 3.3 1.5Barclays Aggregate Bond Index 4.3 2.4 4.3 7.0 5.2 5.9 6.5 7.8 4.2 -2.0 6.0 0.5 2.6 2.2

GC INCOME FUND 4.5 2.3 6.2 1.4 -6.8 8.0 4.2 4.5 4.8 4.5 5.3 0.8 3.9 4.5 Sep-01

50/50 S&P 500/Barclays Aggregate 7.6 3.8 10.0 6.4 -17.9 16.3 11.3 5.3 10.1 14.1 9.8 1.2 7.3 6.3GC LARGE CAP EQUITY FUND 7.3 5.7 11.2 2.8 -38.5 31.9 13.5 0.4 16.7 33.3 14.1 -0.4 9.8 6.5 Dec-96

S&P500 10.9 4.9 15.8 5.5 -37.0 26.5 15.1 2.1 16.0 32.4 13.7 1.4 12.0 12.4GC SMALL CAP EQUITY FUND 27.0 6.6 14.9 -3.6 -41.3 28.9 24.9 -0.9 16.9 33.9 7.6 -1.9 17.2 8.7 Jun-02

S&P1000 18.4 10.9 11.9 5.2 -34.7 33.5 26.5 -0.9 17.4 35.9 8.5 -2.1 22.5 11.0GC INTERNATIONAL FUND 21.9 12.6 26.8 11.6 -42.6 37.7 6.8 -10.7 16.8 21.2 -3.6 -0.3 0.3 4.6 Dec-96

MSCI EAFE 20.2 13.5 26.3 11.2 -43.4 31.8 7.8 -12.1 17.3 22.8 -4.9 -0.8 1.0 4.2GC EMERGING MARKETS FUND 21.2 33.9 32.8 36.5 -52.5 75.7 21.3 -19.8 22.2 1.3 0.1 -13.9 9.7 6.4 Dec-96

MSCI Emerging Markets 25.6 34.0 32.3 39.4 -53.3 78.5 18.9 -18.4 18.2 -2.6 -2.2 -14.9 11.2 5.5GC GLOBAL OPPORTUNITIES FUND 2.3 10.8 3.0 -0.5 -8.0 8.1 2.5 Nov-10

GMO Policy Index -0.4 11.9 15.9 5.4 -0.2 2.1 4.0GC OLDI FUND 10.4 9.4 9.0 4.0 5.5 -5.8 8.3 6.1 May-09

Barclays Long Term Credit 10.7 17.1 12.7 -6.6 16.4 -4.6 10.2 9.7GC ALTERNATIVE INVESTMENT FUND 4.7 12.6 1.1 0.3 2.4 1.0 Aug-14

HFRI Fund of Funds Composite Index 6.9 7.5 10.4 10.3 -21.4 11.5 5.7 -5.7 4.8 9.0 3.4 -0.2 0.5 0.4

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1. Periodic Withdrawals2. Regular Withdrawals3. No Expected Withdrawals

1. No losses2. Volatility Range3. Avoid Permanent Impairment

1. Short, Medium or Long Term2. Flexible, Not Flexible3. Finite, Perpetual or Undefined

1. Preserve Capital2. Generate Income3. Growth of Principal

Portfolio Construction Defining the Investment Goals

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1. Investment Objective

2. Time Horizon

3. Risk Tolerance

4. Liquidity Needs

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Portfolio Construction Creating the Right Recipe: Step 1

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1. Cash2. Bonds3. Stocks

1. Asset Class Allocation

Cash2%

Bonds68%

Stocks30%

1. Cash provides for liquidity needs and reduced volatility.

2. Bonds provide steady income and modest capital growth.

3. Stocks provide long term growth and dividends.

4. Risk vs. Return5. 90% of long term

performance is driven by this decision.

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Portfolio Construction: Step 2Safe Store of Money

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1. Yield2. Duration / Liquidity3. Quality / Risk4. Convexity (Sensitivity to change)

2. Portfolio Effect

QualityAAA,AA,A

BBB,BB,B

Duration1-3 Yrs3-5Yrs

5-10 Yrs

SectorsTechnology,

Financial, Energy, etc.

Weight

Government Bonds AAA 2 – 10 Yrs U.S., Sovereign 4%

Agency Bonds AAA 2-5 Yrs U.S. 2%

Asset Backed Securities AAA, AA 2-10 Yrs Mortgage, Cards, Auto 55%

Corporate Bonds A, BBB 2-5 Yrs All Sectors 9.5%

High Yield Bonds B, BB 2-3 Yrs All Sectors 2%

Cash & Equivalents NA < 1 Yr Cash, T-bills 11%

Inflation Linked AAA 17% TIPS 17%

Currency Exposure AAA USD, Euro, GBP, JPY 2%

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Global Equity AllocationGrow with Global Economy: Step 3

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North America 55%Large Cap 45%Small Cap 10%

International Developed 30%(Europe, Japan, Australia)

Emerging Markets 15%(Brazil, Russia, India, China, Mexico, Eastern Europe, South America, South Pacific, South Africa, et al.)

1. U.S.2. International Developed3. Emerging Markets

3. GeographicDiversification

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Investment Models & ObjectivesS85 20 Policies6. Controlling committees shall complete an asset allocation study in consultation with a non-conflicted,qualified Investment Management Consultant for asset pools for investment prior to investing any assets.8. For each asset pool, an Investment Policy Statement in a format understood by the money management industry and consistent with this General Conference Working Policy shall be approved by each controlling committeewhether employing external managers or managing funds internally.

• The GC Investment Office has developed 5 investment model portfolios which can be employed by investors to achieve the investment objectives for SDA entities and institutions.

• These model portfolios correspond to typical investment objectives for Church entities’.• Investors could invest their portfolios by following these models or may customize the portfolio as

needed.• These models have been researched and developed in consultation with an investment consultant who

has conducted an asset allocation study, and fulfills the requirements of the GC investments policies.

Objectives Safety of principal Generating Current Income

Long Term Portfolio Growth

Model Portfolios Safety Model Income ModelLow Volatility Growth

Balanced GrowthLong Term Growth

Purpose Provide safety of principal and preservation of purchasing power

Provide steady income without encroaching on principal.

Provide long term growth of principal utilizing different levels of risk.

Typical Use by Church Entities

Capital projects, donor advised funds.A short to medium term investment 1-2 years.

Operating funds, revolving funds, or other income generating needs over a long term.Minimum 3-5 years.

Pension or retirement plans, plant funds, endowment funds and other long term growth needs. Minimum 3-5 years.

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Strategic Models• The following chart provides the allocations utilized by each of the model portfolios developed by the

GC Investment Office.• The models utilize the GC Unitized Funds as the investment vehicles.• The portfolios may have allocations to Cash & Cash Equivalents, Fixed Income, Equities and Balanced

Funds.• The funds contain investments across a wide range of investment types and geographic regions.• The model performance and volatility (riskiness) is shown below.

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Performance of Income Model

Income Model Objectives: • Generate current income on a regular basis.• Invests in a well diversified portfolio of GC Funds• The portfolio may generate some capital growth.• The majority of the principle will not be needed for 5

years or longer.• Average fluctuation* investment value of < 5%.• Current Income: Yield ~ 2.5%

*As measured by portfolio standard deviation.

• The performance of the models (Strategic and Tactical) are shown. The allocation is that of the Strategic Model.• The portfolio may be adjusted periodically to look for opportunities for optimal growth. These Tactical models will be made available in

2018. The results of the Tactical model is also shown.

Performance November 2107

AnnualizedReturn 1Year 3Year 5Year 7Year 10Year Since2001 Average Worst Best

StrategicModel 7.2% 3.4% 3.9% 4.2% 4.1% 5.0% 4.9% -12.8% 18.7%StandardDeviation 2.5% 2.4% 2.6% 4.0% 3.7%

TacticalModel 7.4% 3.5% 4.2% 4.6% 5.0% 5.6% 5.5% -7.0% 17.5%StandardDeviation 2.1% 2.3% 2.6% 3.5% 3.3%

CalendarYearReturn 2017YTD 2016 2015 2014 2013 2012 2011 2010 2008StrategicModel 6.6% 5.3% -0.7% 4.4% 8.1% 9.5% 1.9% 9.6% -17.7%TacticalModel 6.7% 5.8% 0.0% 4.3% 9.0% 10.0% 5.5% 10.2% -10.8%S&P500Index 17.3% 12.0% 1.4% 13.7% 32.4% 16.0% 2.1% 15.1% -37.0%BBGAggBondIndx 1.4% 2.6% 0.5% 6.0% -2.0% 4.2% 7.8% 6.5% 5.2%

GCBond21%

GCTotalReturnBond

21%GCIncome42%

GCGloOpportunity

8%

GCUSLargeCap5%

GCInternaAonal

Equity3%

Por$olioMix

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Income Model Portfolio32% Equities 68% Fixed Income

This graph depicts the hypothetical results of $1000 invested in the Low Volatility growth models using a Strategic and Tactical approach since 2001. The S&P500 index is shown for comparison purposes only. This graph is for illustrative purposes only. Your investment results may vary.

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

12/1/00

6/1/01

12/1/01

6/1/02

12/1/02

6/1/03

12/1/03

6/1/04

12/1/04

6/1/05

12/1/05

6/1/06

12/1/06

6/1/07

12/1/07

6/1/08

12/1/08

6/1/09

12/1/09

6/1/10

12/1/10

6/1/11

12/1/11

6/1/12

12/1/12

6/1/13

12/1/13

6/1/14

12/1/14

6/1/15

12/1/15

6/1/16

12/1/16

6/1/17

Investmen

tValue

$

IncomePor2olioModelvs.Tac8calGrowthof$1000

Model

Tac7cal

S&P500

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Performance of Low Volatility Growth Model

Low Volatility Growth Model Objectives: • Growth of principle over a 3 – 5 year• Invests in a well diversified portfolio of GC Funds• Investments may generate some current income.• Principle will not be needed for 5 years or longer.• Average fluctuation* investment value of +/- ~6% or

more is acceptable.• Yield ~ 2.3%

*As measured by portfolio standard deviation.

• The performance of the models (Strategic and Tactical) are shown. The allocation is that of the Strategic Model.• The portfolio may be adjusted periodically to look for opportunities for optimal growth. These Tactical models will be made available in

2018. The results of the Tactical model is also shown.

Performance October 2107

AnnualizedReturn 1Year 3Year 5Year 7Year 10Year Since2001 Average Worst Best

StrategicModel 8.9% 4.1% 5.3% 5.3% 4.4% 5.7% 5.6% -23.3% 27.1%StandardDeviation 4.1% 3.9% 4.5% 6.6% 5.9%

TacticalModel 9.9% 4.7% 5.8% 6.4% 6.3% 6.9% 6.6% -14.5% 27.9%StandardDeviation 3.5% 3.8% 4.5% 6.1% 5.4%

CalendarYearReturn YTD 2016 2015 2014 2013 2012 2011 2010 2008StrategicModel 4.6% 5.3% -0.7% 4.4% 8.1% 9.5% 1.9% 9.6% -17.7%TacticalModel 5.0% 5.8% 0.0% 4.3% 9.0% 10.0% 5.5% 10.2% -10.8%S&P500Index 15.3% 12.0% 1.4% 13.7% 32.4% 16.0% 2.1% 15.1% -37.0%BBGAggBondIndx 3.2% 2.6% 0.5% 6.0% -2.0% 4.2% 7.8% 6.5% 5.2%

GCBond10%

GCTotalReturnBond

25%

GCIncome30%

GCGloOpportunity

10%

GCLargeCap10%

GCSmallCap5%

GCInterna@onal

8%

GCEmergingMkt2%

Por$olioMix

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Low Volatility Growth Portfolio35% Equities 65% Fixed Income

This graph depicts the hypothetical results of $1000 invested in the Low Volatility growth models using a Strategic and Tactical approach since 2001. The S&P500 index is shown for comparison purposes only. This graph is for illustrative purposes only. Your investment results may vary.

$500$750

$1,000$1,250$1,500$1,750$2,000$2,250$2,500$2,750$3,000

12/31/00

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

12/31/06

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

12/31/12

12/31/13

12/31/14

12/31/15

12/31/16

InvestmentValue$

LowVola1lityGrowthPor8olioStategicvs.Tac1calGrowthof$1000

ModelTac7calS&P500

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Helping You Be Wise Stewards

� GC Investment Office is here to help all church entities and institutions with their investment needs.

� No advisory fees charged by the GCIO. � All in fund costs ~0.25% - 0.45%. Fund costs include:

� Operating fees – 4.0bp (0.04% of Assets)� Sub-advisor fees – 20bp – 60bp (already included in the fund.)� Sub-advisors include: PIMCO, Western Asset Management & QS

Investors (Legg Mason), Franklin Templeton, Lazard, Alliance Bernstein, Harris Associates, Mondrian, Deutsche Asset Management, GMO, Silvercrest, Westwood, Madison Investment Advisors, New Century, Comerica.

� GC Unitized Funds provide access to excellent active investment managers at a low cost.

� Model Portfolio provide reliable long term investment strategies.

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AppendixGC Fund Descriptions

26

27

GC Money FundInvestment Objectives & Strategies• Objective is to provide a safe short

term investment options for investors looking to manage liquidity.

• Invests in short term, high quality, investment.

• The fund maintains a $1.00 NAV.• Fund can be bought or sold daily.• Fund managed internally by the GC

Investment Office.

$10,687,192.74, 3%

$76,296,809.15, 21%

$69,766,054.90, 19%

$128,781,566.67, 36%

$34,167,366.99, 10%

$39,641,081.94, 11%

Cash Corporate Bond Certificate of Deposit

Commercial Paper GABond GA Disc

$950.00$1,000.00

$1,050.00

$1,100.00

$1,150.00

$1,200.00

$1,250.00

$1,300.00

10/3

1/20

022/

28/2

003

6/30

/200

310

/31/

2003

2/29

/200

46/

30/2

004

10/3

1/20

042/

28/2

005

6/30

/200

510

/31/

2005

2/28

/200

66/

30/2

006

10/3

1/20

062/

28/2

007

6/30

/200

710

/31/

2007

2/29

/200

86/

30/2

008

10/3

1/20

082/

28/2

009

6/30

/200

910

/31/

2009

2/28

/201

06/

30/2

010

10/3

1/20

102/

28/2

011

6/30

/201

110

/31/

2011

2/29

/201

26/

30/2

012

10/3

1/20

122/

28/2

013

6/30

/201

310

/31/

2013

2/28

/201

46/

30/2

014

10/3

1/20

142/

28/2

015

6/30

/201

510

/31/

2015

2/29

/201

66/

30/2

016

10/3

1/20

162/

28/2

017

6/30

/201

7

Growths of $1000

Money Fund 91 Day T Bills

28

GC U.S. Large Cap Fund

$33,862 , 17%

$83,953 , 42%

$45,630 , 23%

$37,023 , 18%

in ($000)

Harris Assoc QS Investors Comerica Cash

Investment Objectives & Strategies• Seeks to to provide long term growth by

investing in large size U.S. companies.• Manager - Harris Associates: Medium to Large

Cap deep value, contrarian• Manager - QS Investors: Dynamic ETF Style

Timing using U.S. Low Volatility Dividend Index

• Manager - Comerica Wealth Management: Index Fund – using S&P500 index

• Fund may hold cash for safety of principle when appropriate.

$500.00

$800.00$1,100.00

$1,400.00$1,700.00

$2,000.00$2,300.00$2,600.00

$2,900.00

4/30/2004

4/30/2005

4/30/2006

4/30/2007

4/30/2008

4/30/2009

4/30/2010

4/30/2011

4/30/2012

4/30/2013

4/30/2014

4/30/2015

4/30/2016

4/30/2017

Growth of $ 1000

GC Large Cap Fund S & P 500

29

GC U.S. Small Cap Fund $35,203 , 38%

$26,387 , 29%

$30,420 , 33%

in ($000)

Silvercrest Asset Mgmt Comerica Cash

Investment Objectives & Strategies• Seeks to to provide long term growth by

investing in small and medium size companies.

• Manager- Silvercrest Asset Management: Small and Medium Cap value.

• Manager - Comerica Wealth Management: Index Fund – using S&P1000 index

• The fund may hold cash to provide for safety of principle when appropriate.

$600.00$1,000.00$1,400.00$1,800.00$2,200.00$2,600.00$3,000.00$3,400.00$3,800.00

1/31/2005

1/31/2006

1/31/2007

1/31/2008

1/31/2009

1/31/2010

1/31/2011

1/31/2012

1/31/2013

1/31/2014

1/31/2015

1/31/2016

1/31/2017

Growths of $1000

GC Small Cap Russel 2000

30

GC Emerging Markets Fund$31,501 , 41%

$27,144 , 35%$18,241

, 24%

($000)

Lazard Asset Mgmt Alliance Bernstein Cash

Investment Objectives & Strategies• Seeks to provide long term growth by investing

in equities of emerging market countries.• Manager - Lazard Asset Management: Emerging

market value. Long term investors in global enterprises.

• Manager - Alliance Bernstein: Emerging markets growth. Invests in non-cyclical, high growth sectors.

• Fund may hold cash for safety of principal when deemed appropriate

$800.00$1,200.00$1,600.00$2,000.00$2,400.00$2,800.00

12/3

1/20

046/

30/2

005

12/3

1/20

056/

30/2

006

12/3

1/20

066/

30/2

007

12/3

1/20

076/

30/2

008

12/3

1/20

086/

30/2

009

12/3

1/20

096/

30/2

010

12/3

1/20

106/

30/2

011

12/3

1/20

116/

30/2

012

12/3

1/20

126/

30/2

013

12/3

1/20

136/

30/2

014

12/3

1/20

146/

30/2

015

12/3

1/20

156/

30/2

016

12/3

1/20

166/

30/2

017

Growth of $ 1000

GC Emerging Markets MSCI EAFE

31

GC Bond Fund

$57,092 , 82%

$10,695 , 15%

$2,246 , 3%

($000)

Western Asset Mgmt Madison Investment Advisors Cash

Investment Objectives & Strategies• Seeks to provide safety of principle and

interest income by investing in a wide range of U.S. fixed income.

• Manager -Western Asset Management: Conservative core bond portfolio strategy with benchmark duration.

• Manager - Madison Investment Advisors: High quality core bond portfolio with minimum A rating. Varies duration according to outlook.

$900.00$1,000.00$1,100.00$1,200.00$1,300.00$1,400.00$1,500.00$1,600.00$1,700.00

12/3

1/20

04

6/30

/200

5

12/3

1/20

05

6/30

/200

6

12/3

1/20

06

6/30

/200

7

12/3

1/20

07

6/30

/200

8

12/3

1/20

08

6/30

/200

9

12/3

1/20

09

6/30

/201

0

12/3

1/20

10

6/30

/201

1

12/3

1/20

11

6/30

/201

2

12/3

1/20

12

6/30

/201

3

12/3

1/20

13

6/30

/201

4

12/3

1/20

14

6/30

/201

5

12/3

1/20

15

6/30

/201

6

12/3

1/20

16

6/30

/201

7

Growths of $1000

GC Bond BBG Barc US Gov Credit Int TR

32

GC Capital Preservation Fund$87,131 , 49%

$91,178 40%

$469 , 0%

($000)

New Century QS Investors Cash

Investment Objectives & Strategies• Seeks to provide a growth of 1.00% over 90 day

T-bills while ensuring safety of principal • Manager – New Century Advisors: Risk

managed balanced portfolio.• Manager – QS Investors: Balanced portfolio

using portfolio insurance approach.

$900.00

$1,000.00

$1,100.00

$1,200.00

$1,300.00

11/30/2007

4/30/2008

9/30/2008

2/28/2009

7/31/2009

12/31/2009

5/31/2010

10/31/2010

3/31/2011

8/31/2011

1/31/2012

6/30/2012

11/30/2012

4/30/2013

9/30/2013

2/28/2014

7/31/2014

12/31/2014

5/31/2015

10/31/2015

3/31/2016

8/31/2016

1/31/2017

6/30/2017

Growths of $ 1000

GC Capital Preservation Fund 91 Day T Bills

33

GC Total Return Bond Fund

$98,241 , 100%

$321 , 0%

($000)

WA Total Return Unconstrained Bond Fund Cash

Investment Objectives & Strategies• Seeks to provide growth of principal and

interest income by investing in a wide range of U.S. fixed income.

• Manager –Western Asset Management: Unconstrained bond fund strategy. Does not follow any index and may adjust duration according to their expectation of interest rate movements.

940960980

10001020104010601080

2015/

006

2015/

007

2015/

008

2015/

009

2015/

010

2015/

011

2015/

012

2016/

001

2016/

002

2016/

003

2016/

004

2016/

005

2016/

006

2016/

007

2016/

008

2016/

009

2016/

010

2016/

011

2016/

012

2017/

001

2017/

002

2017/

003

2017/

004

2017/

005

2017/

006

Growth of $ 1000

Total Returns Bond Fund BBg Barc US Aggregate

34

GC Income FundInvestment Objectives & Strategies• Seeks to provide steady current

income and long term portfolio growth through investment in asset allocation strategies.

• Manager –Westwood Holdings: Income Opportunity Fund

• Manager – New Century Advisors: Balanced Income strategy.

• Manager – GC Investment Office: General Conference Loans.

$341,745, 61%

$121,262, 21%

$93,574, 17%

$3,920, 1% ($000)

GC Loans New Century Westwood Cash

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

$2,000.00

$2,200.00

8/31

/200

11/

31/2

002

6/30

/200

211

/30/

2002

4/30

/200

39/

30/2

003

2/29

/200

47/

31/2

004

12/3

1/20

045/

31/2

005

10/3

1/20

053/

31/2

006

8/31

/200

61/

31/2

007

6/30

/200

711

/30/

2007

4/30

/200

89/

30/2

008

2/28

/200

97/

31/2

009

12/3

1/20

095/

31/2

010

10/3

1/20

103/

31/2

011

8/31

/201

11/

31/2

012

6/30

/201

211

/30/

2012

4/30

/201

39/

30/2

013

2/28

/201

47/

31/2

014

12/3

1/20

145/

31/2

015

10/3

1/20

153/

31/2

016

8/31

/201

61/

31/2

017

6/30

/201

7

Growths of $1000

GC Income Fund BBG Barc US Gov/Credit Int Tr

35

GC Global Opportunities Fund

Investment Objectives & Strategies• Seek for long term growth of principal by

investing in global asset allocation strategies with a value orientation.

• Manager – Pacific Investment Management Co (PIMCO) – All Assets All Authority fund.

• Manager – GMO LLC: GMO Benchmark-Free Portfolio Strategy

$85,814 , 50%

$86,268 , 50%

$193 , 0%

($000)

Pimco Asset GMO BM-Free Cash Equivalents

$900.00

$1,100.00

$1,300.00

$1,500.00

$1,700.00

10/30/2010

2/28/2011

6/30/2011

10/31/2011

2/29/2012

6/30/2012

10/31/2012

2/28/2013

6/30/2013

10/31/2013

2/28/2014

6/30/2014

10/31/2014

2/28/2015

6/30/2015

10/31/2015

2/29/2016

6/30/2016

10/31/2016

2/28/2017

6/30/2017

Growth $1000

GC Global Opportunity Fund CPI +5%

36

SDA Short Term Bond Index Fund Investment Objectives & Strategies• Seeks for safety of principal and growth over the short to medium term by

investing in a portfolio following the Bloomberg Barclays Short Term U.S. Government/Credit Bond Index.

• The fund employs an index strategy, which seeks to invest in the same securities in the same proportions as the index. Allocations within the fund are adjusted daily to match the index.

• Manager – Comerica Asset Management.

10001050110011501200125013001350140014501500

11/1

/200

26/

1/20

031/

1/20

048/

1/20

043/

1/20

0510

/1/2

005

5/1/

2006

12/1

/200

67/

1/20

072/

1/20

089/

1/20

084/

1/20

0911

/1/2

009

6/1/

2010

1/1/

2011

8/1/

2011

3/1/

2012

10/1

/201

25/

1/20

1312

/1/2

013

7/1/

2014

2/1/

2015

9/1/

2015

4/1/

2016

11/1

/201

66/

1/20

17

Growth of $1000

Short Term Bond LB Gov/Cr 1-3

37

SDA Intermediate Bond Fund

$1,000.00$1,100.00$1,200.00$1,300.00$1,400.00$1,500.00$1,600.00$1,700.00$1,800.00

11/3

0/20

024/

30/2

003

9/30

/200

32/

29/2

004

7/31

/200

412

/31/

2004

5/31

/200

510

/31/

2005

3/31

/200

68/

31/2

006

1/31

/200

76/

30/2

007

11/3

0/20

074/

30/2

008

9/30

/200

82/

28/2

009

7/31

/200

912

/31/

2009

5/31

/201

010

/31/

2010

3/31

/201

18/

31/2

011

1/31

/201

26/

30/2

012

11/3

0/20

124/

30/2

013

9/30

/201

32/

28/2

014

7/31

/201

412

/31/

2014

5/31

/201

510

/31/

2015

3/31

/201

68/

31/2

016

1/31

/201

76/

30/2

017

Growth of $1000

SDA Intermediate Bond Fund LB Aggregates Bond Index

Investment Objectives & Strategies• Seeks for safety of principal and growth over the short to medium term by

investing in a portfolio following the Bloomberg Barclays Intermediate Term U.S. Government/Credit Bond Index.

• The fund employs a index strategy, which seeks to invest in the same securities in the same proportions as the index. Allocations within the fund are adjusted daily to match the index.


38

SDA Total Market Bond Fund

10001100120013001400150016001700180019002000

11/3

0/20

024/

30/2

003

9/30

/200

32/

29/2

004

7/31

/200

412

/31/

2004

5/31

/200

510

/31/

2005

3/31

/200

68/

31/2

006

1/31

/200

76/

30/2

007

11/3

0/20

074/

30/2

008

9/30

/200

82/

28/2

009

7/31

/200

912

/31/

2009

5/31

/201

010

/31/

2010

3/31

/201

18/

31/2

011

1/31

/201

26/

30/2

012

11/3

0/20

124/

30/2

013

9/30

/201

32/

28/2

014

7/31

/201

412

/31/

2014

5/31

/201

510

/31/

2015

3/31

/201

68/

31/2

016

1/31

/201

76/

30/2

017

Growth of $1000

SDA Total Market Bond LB Agg Bond Indes


investing in a portfolio following the Bloomberg Barclays Aggregate Bond Index.



39

SDA U.S. Large Cap Index Fund

0

1000

2000

3000

4000

11/1

/200

2

6/1/

2003

1/1/

2004

8/1/

2004

3/1/

2005

10/1

/200

5

5/1/

2006

12/1

/200

6

7/1/

2007

2/1/

2008

9/1/

2008

4/1/

2009

11/1

/200

9

6/1/

2010

1/1/

2011

8/1/

2011

3/1/

2012

10/1

/201

2

5/1/

2013

12/1

/201

3

7/1/

2014

2/1/

2015

9/1/

2015

4/1/

2016

11/1

/201

6

6/1/

2017

Growth in $1000

SDA Large Cap S&P 500


investing in a portfolio following the S&P500 equity index. • The fund employs a index strategy, which seeks to invest in the same

securities in the same proportions as the index. Allocations within the fund are adjusted daily to match the index.


40

SDA U.S. Small Cap Index Fund

1000150020002500300035004000450050005500

11/1

/200

25/

1/20

0311

/1/2

003

5/1/

2004

11/1

/200

45/

1/20

0511

/1/2

005

5/1/

2006

11/1

/200

65/

1/20

0711

/1/2

007

5/1/

2008

11/1

/200

85/

1/20

0911

/1/2

009

5/1/

2010

11/1

/201

05/

1/20

1111

/1/2

011

5/1/

2012

11/1

/201

25/

1/20

1311

/1/2

013

5/1/

2014

11/1

/201

45/

1/20

1511

/1/2

015

5/1/

2016

11/1

/201

65/

1/20

17

Growth of $ 1000

SDA U.S. Small Cap S&P 1000


investing in a portfolio following the S&P1000 equity index. • The fund employs a index strategy, which seeks to invest in the same

securities in the same proportions as the index. Allocations within the fund are adjusted daily to match the index.


41

SDA International Index Fund

800

1300

1800

2300

2800

3300

11/1

/200

25/

1/20

0311

/1/2

003

5/1/

2004

11/1

/200

45/

1/20

0511

/1/2

005

5/1/

2006

11/1

/200

65/

1/20

0711

/1/2

007

5/1/

2008

11/1

/200

85/

1/20

0911

/1/2

009

5/1/

2010

11/1

/201

05/

1/20

1111

/1/2

011

5/1/

2012

11/1

/201

25/

1/20

1311

/1/2

013

5/1/

2014

11/1

/201

45/

1/20

1511

/1/2

015

5/1/

2016

11/1

/201

65/

1/20

17

Growth of $ 1000

SDA International Equity Fund MSCI EAFE


investing in a portfolio following the MSCI EAFE equity index. (EAFE = Europe, Australia & Far East)



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Moneywise: Resources for SDA Treasurers - General Conference...

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