wfn.org | Retirement Fund Gains 21.7 Percent

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"UNITED METHODIST DAILY NEWS 97" by SUSAN PEEK on April 15, 1997 at 14:24
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Note 585 by UMNS on Feb. 3, 1998 at 17:23 Eastern (5807 characters).

CONTACT: Tim Tanton						58(10-71B){585}
		Nashville, Tenn. (615)742-5473	Feb. 3, 1998

Board of Pension sees
21.7 percent return on fund

by United Methodist News Service

	SAN DIEGO -- Driven by the roaring stock market, the United Methodist agency
that handles the church's retirement funds saw strong returns last year.
	Members of the Board of Pension and Health Benefits gave the agency's staff a
pat on the back after reviewing investment returns at the board's Jan. 28-30
meeting in San Diego, Calif.
	The board's Diversified Investment Fund, which represents the agency's
largest pool of investment dollars, earned 21.7 percent for 1997. Its 21.3
percent gain for the first nine months of the year placed it in the top 11
percent of comparable funds during that period.
A chart that was passed around the meeting room showed the fund ranked well
within the top 25 percent of its peer group for the last seven years. Board
members were clearly pleased.
	"This graphic is an amazing affirmation of the record of the board," said the
Rev. Bruce Blake, bishop of the Oklahoma Area and chairperson of the board.
"This simply indicates with a diversified fund that we are doing very, very
well."
	The diversified fund had a five-year return of 16.0 percent, putting it in
the top 22 percent of comparably sized funds, according to Trust Universe
Comparison Service. Those figures don't reflect the end-of-the-year gain for
1997. The fund has 90 percent of the agency's investment dollars.
	The board must be effective in communicating that kind of performance to its
participants -– the clergy and church laity, board members said. Two board
members noted attempts by outside investment firms to woo away plan
participants -– attempts that failed when the participants had a better
understanding of the board's record.
	The stock exchanges are enjoying a long-running bull market. Investment
Committee Chairperson John English predicted the Dow Jones industrial average
will be closer to 9000 than 8000 when the board meets again, April 17-18, in
Skokie, Ill.
	With $9.7 billion in assets, the Board of Pension is the largest
denominational pension fund in the country and the 84th-largest pension fund
overall, said General Secretary Barbara Boigegrain. Its benefits cover about
25,000 retirees or survivors and 40,000 active clergy, lay employees and their
families.
The board's money managers invest in a range of companies, all of which must
fit the social principles of the United Methodist Church. The board avoids
investing in companies that profit from tobacco, alcohol, gambling, and
nuclear weapons and other military-related activities.
Being a major institutional investor gives the church clout in effecting
change among companies in which it invests. For example, the Corporate and
Fiduciary Committee discussed at a Jan. 30 breakfast meeting its ongoing talks
with Allegiance Corp., Walt Disney, Delta Airlines and Nike about changing
company practices in a variety of areas.
Allegiance, a health care products company, agreed in a letter to the board to
review its policy regarding wages, fair labor practices and environmental
standards for its operations in Mexico. As a result, the board withdrew a
resolution that it had planned to present at Allegiance's annual shareholders'
meeting. Allegiance will submit a report within six months.
After filing shareholder resolutions for two years with Delta Airlines, the
board finally won a commitment from the airline's management to publish a
report on equal employment and diversity practices.
"We feel like this is a success story," said Vidette Bullock Mixon, director
of corporate relations and social concerns for the board.
Board officials have an ongoing dialogue with Disney officials about fair
labor practices, particularly in Haiti. A board representative will attend
Disney's annual shareholders meeting in Kansas City, Mo., on Feb. 24, to
support a resolution requesting that the company adopt an independent
monitoring process for its manufacturing plants worldwide.
The board has also been working with Nike regarding its labor practices. 
The board's directors had a full agenda in San Diego:
· The Benefits 2000 Task Force, established last year, gave its first report
to the board of directors. The task force is evaluating the benefits program
for the church's clergy and laity. Several key points were discussed,
including issues of equity and cost containment, and challenges related to
providing retiree health benefits.
· The board approved a 1998 operating budget of $28.4 million, down 5.05
percent from its budget the previous year. The decrease -– the first in many
years -- resulted from the board's ongoing restructuring efforts and increase
efficiency, Boigegrain said.
· The board approved a capital budget of $3.2 million, up 32.9 percent from a
year earlier. The increase reflected strategic initiatives aimed at improving
the board's computer system.
· The Investment Committee acted on a staff    recommendation to invest $130
million with Trinity Investment Management Corp. The firm manages $6.9 billion
in assets.
· The board heard an update on the new Personal Investment Plan, which took
effect this year. The PIP represents a change in investment options for
participants, with the aim of offering more flexibility in investment choices.
The PIP offers five funds and a money market option. As of Jan. 23, the most
popular choice among participants was the Diversified Investment Fund, which
has 73.2 percent of all employee-directed dollars.
· The board learned that it had been named Sponsor Member Organization of the
Year by Project Equality's Illinois chapter, in recognition of the agency's
support and attention to workplace diversity.
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