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St. Matthew Ev. Lutheran Church

Church - 262-284-3360
    

1525 N. Grant St.

Port Washington, Wisconsin  53074

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St. Matthew Endowment Fund
The St. Matthew Endowment Fund has been created to provide our members with an effective way to provide financial gifts to the Church where those funds will be managed and invested wisely.  

The Endowment Committee has evaluated a number of alternative fund management firms and has chosen Weir Financial Services.  Weir Financial is very Wels oriented and has effective methods and experience with church endowment funds and we are confident that they are a great partner for St Matthew.

Below are specifics about how the fund is managed:

St. Matthew Evangelical Lutheran Church Endowment Fund (SMEF)

SMEF investment objective & strategy: Since income from the endowment account is used to help fund the WELS and St. Matthew accounts, it was decided that the overall objective of the SMEF should be 'Income with growth.'

To help define an income goal for the SMEF, it was decided to use the '30 year fixed mortgage rates' as the minimum target. As fixed mortgage rates change over time, the SMEF income goal would also follow suit. For reference, the current rate for '30 year fixed mortgages' is hovering around 4%.

For an investment strategy the SMEF will use the Sherman Bull/Bear Indicator as a predictor for bull & bear markets (as approved by the SMEF on August 7, 2012). During bear (“down”) markets the endowment portfolio will consist of conservative investments (such as a money market, which is ultra conservative with a low return) and during bull (“up”) markets the portfolio will consist of less conservative investments to take advantage of rising stock prices.

Risk or Volatility Indicator “Beta”:

Stocks have a 'Beta' value which indicates how volatile the stock is relative to the overall stock market. For instance, an S&P 500 Index (which reflects the performance of the overall US stock market) would have a Beta of 1.0 and a money market fund would have a Beta of zero (because a money markets value is not influenced by the stock market). At the meeting it was decided that Beta values would be used for the SMEF investment strategy as specified below:

Risk or Volatility Indicator “Beta” continued:

  •   Bear market: Invest in equities that may have a Beta of 0.75 or less.

  •   Bull market: Invest in equities that may have a Beta of 1.25 or greater.



    Core Investment Fund Policy Statement:

The proposal is to create a 'dividend growth core fund' within the endowment fund. This core fund may be comprised of 1 to 4 equities that have a long history of annually increasing their dividends and will make up at least 40% of the overall endowment fund. If the SMEF approves this proposal, then the advisors input will be requested to identify equities that are suitable for this core fund. 

 
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