Louisiana Methodist Children’s Home Investment Committee Meeting April 7, 2021
United Methodist Foundation of Louisiana
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MARKET FACTORS INFLUENCING 4Q20 Global equities rose dramatically while fixed income was flat. • Throughout the last quarter of the year, optimism and confidence grew due to the introduction of a COVID vaccine and the continued effects of massive stimulus throughout the world,and especially in the U.S. (44% of GDP and about to increase under Biden). • 3Q20 earnings (announced during the 4Q20) were better than expected and more companies began providing guidance (which had ceased during the pandemic). • Election: With the WH, Senate and Congress all controlled by the democrats (although very thinly– super majority needed to affect major change), many believe additional stimulus will arrive more quickly, immediate focus on the pandemic and then climate change. No tax changes until well after the mid-term elections. Some expectation of more “cooperation across the aisle” but time will tell. • After dropping -32% in 2Q20, the U.S. Economy grew +33.1% in the 3Q20 and an increase of 5% is expected for the 4Q20. • Unemployment in December was 6.7% after peaking in April at 14.7%. The recent low was 3.5% in February of 2020.
United Methodist Foundation of Louisiana
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MARKET UPDATE 4Q20
Market Update (4Q20)
United Methodist Foundation of Louisiana For institutional use only. Distribution to any other audience is prohibited.
GLOBAL INSTITUTIONAL CONSULTING
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CIO OUTLOOK 2021 - THE GREAT SEPARATION
CIO Outlook 2021 – The Great Separation
United Methodist Foundation of Louisiana
GLOBAL INSTITUTIONAL CONSULTING
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CIO OUTLOOK 2021 - ECONOMIC OUTLOOK
CIO Outlook 2021 – Economic Outlook
United Methodist Foundation of Louisiana
GLOBAL INSTITUTIONAL CONSULTING
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CIO OUTLOOK 2021 - BUSINESS CYCLE (JAN 2021)
CIO Outlook 2021 – Business Cycle (Jan 2021)
United Methodist Foundation of Louisiana For institutional use only. Distribution to any other audience is prohibited.
GLOBAL INSTITUTIONAL CONSULTING
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CIO INVESTOR’S DASHBOARD CIO Market Outlook 2021 – CIO Investor Dashboard
GLOBAL INSTITUTIONAL CONSULTING
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For institutional use only. Distribution to any other audience is prohibited.
United Methodist Foundation of Louisiana
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CIO OUTLOOK 2021 - GUIDANCE
CIO Outlook 2021 – Guidance
GLOBAL INSTITUTIONAL CONSULTING
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•
Unprecedented fiscal stimulus, a soft U.S. dollar, and positive trends in economic and earnings growth are among the factors that we believe will continue to support an equity uptrend in 2021.
•
We expect a “grind-it-out” year in equity returns that far outpace Fixed Income, and what matters most is our expectation for a broad market advance relative to the narrow advances we have recently experienced, in our view.
•
We raised our overall allocation to Equities slightly and lowered our Cash allocation to position for continued economic recovery and to add cyclicality to portfolios. Within Equities, we upgraded U.S. Small-cap Value (where applicable) to slight overweight, and Emerging Markets (EMs) to neutral; while lowering our allocation to U.S. Large-caps (but we remain overweight). We still expect Equities to outperform Fixed Income We remain overweight US Equities We are now neutral Emerging Markets We are neutral International Developed Markets We remain slightly underweight Fixed Income We remain in favor of strategic allocations to Private Equity, Hedge Funds and Private Real Estate (if allowable). For institutional use only. Distribution to any other audience is prohibited.
United Methodist Foundation of Louisiana
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FUND PERFORMANCE
12/31/20
LOUISIANA METHODIST CHILDREN’S HOME FUND
A customized portfolio created by the United Methodist Foundation of Louisiana to match the LMCH investment policy.
INCOME FUND
LMCH FUND 1 YEAR*
13.43%
IPS Benchmark
13.69%
A highly liquid fund offering stable value with higher income than similar liquid funds. A good alternative to CDs or when a ministry anticipates needing money in the near future.
CURRENTLY
BALANCED FUND
Investors with low risk tolerance utilize these funds for growth that outpaces inflation and income that supplements current needs. A combination of equity securities to provide capital appreciation, fixed income for income and absolute return and real assets for downside protection.
IMPACT FUND
INCOME FUND
This fund pursues capital appreciation opportunities by investing only equity securities in ESG (Environment, Social and Governance) companies with positive business practices.
.50%
BALANCED FUND 1 YEAR*
13.59%
IPS Benchmark
12.41%
IMPACT FUND 1 YEAR*
20.11%
IPS Benchmark
17.79%
United Methodist Foundation of Louisiana
* Net of all fees
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LMCH FUND BALANCES Account Name
Income Fund
12/31/20
Balanced Fund
LMCH Fund
General Endowment Fund
-
Davidson Endowment
-
$11,070
Varnell Endowment
-
$ 12,901
Bradley Endowment
-
$ 14,264
Clay Memorial Endowment
-
$ 68,763
Barksdale Endowment
-
$ 145,874
Otwell Memorial Endowment
-
$ 166,694
Amy McGuire Endowment
-
$ 164,128
New Orleans Endowment
-
$ 366,393
Votech Scholarship
-
$ 446,420
LA Methodist Children’s Home, Ruston
-
$ 361,639
MCH, Greater NO Facility Fund
-
-
$ 5,068,800
-
-
-
$ 5,068,800
$ 1,758,146
MCH, Ruston-Reserve Act Central Penn Fund
Totals
United Methodist Foundation of Louisiana
$18,924,881
$18,924,881
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LMCH FUND
Emerging Market & International Stocks 6%
12/31/20
Domestic Mid & SmallCap Stocks 15% Domestic Large Cap Stocks 47%
Global Fixed Income 32%
United Methodist Foundation of Louisiana
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UNITED UNITEDMETHODIST METHODISTFOUNDATION FOUNDATIONOF OFLOUISIANA LOUISIANA
12/31/2020 12/31/2020
UNITED METHODIST FOUNDATION OF LOUISIANA
12/31/2020
UNITED UNITEDMETHODIST METHODISTCHILDREN'S CHILDREN'SHOME HOME LMCH FUND UMCH UMCH(Incepted (Incepted7/2019) 7/2019) IPS IPSBenchmark Benchmark UMCH (InceptedOF 7/2019) UNITED METHODIST FOUNDATION LOUISIANA IPS Benchmark UMCH UMCHFund FundFlows Flows Opening OpeningBalance Balance UMCH Fund Flows Net NetFlows Flows Opening Balance LMCH (Incepted 7/2019) UMCH (Incepted 7/2019) Interest/Dividends Interest/Dividends Net Flows IPS Benchmark IPS Benchmark Appreciation/(Depreciation) Appreciation/(Depreciation) Interest/Dividends Closing ClosingBalance Balance Appreciation/(Depreciation) UMCHBalance Fund Flows Closing Opening Balance Net Flows Interest/Dividends Appreciation/(Depreciation) Closing Balance
UNITED METHODIST CHILDREN'S HOME 4Q2020 4Q2020 YTD YTD 10.05 10.05 4Q2020 7.94 7.94 10.05 7.94
13.43 13.43 YTD 13.69 13.69 13.43 13.69
4Q2020 4Q2020
1 1Year Year 13.43 13.43 1 Year 13.69 13.69 13.43 13.69 YTD YTD
UNITED METHODIST 16,604,527 16,604,527 CHILDREN'S HOME 16,498,507 16,498,507
4Q2020 YTD (15,045) (15,045) (29,684) (29,684) 4Q2020 YTD 1 Year 16,604,527 16,498,507 10.05 13.43 13.43 10.05 13.43 13.43 153,869 153,869 225,582 225,582 (15,045) (29,684) 7.94 13.69 13.69 7.94 13.69 13.69 819,073 819,073 868,019 868,019 153,869 225,582 17,562,424 17,562,424 17,562,424 17,562,424 819,073 868,019 4Q2020 YTD 17,562,424 17,562,424 CURRENT CURRENTACCOUNT ACCOUNTALLOCATION ALLOCATION 16,604,527 16,498,507 CURRENT ACCOUNT (15,045) ALLOCATION (29,684) 153,869 225,582 819,073 868,019 17,562,424 17,562,424
CURRENT ACCOUNT ALLOCATION
Incept Incept(8/19) (8/19) 14.35 14.35 Incept (8/19) 14.39 14.39 14.35 14.39
12/31/2020
Since SinceInception Inception(8/19) (8/19) 16,498,507 16,498,507 Since Inception (8/19) (29,684) (29,684) Incept (8/19) 16,498,507 14.35 14.35 225,582 225,582 (29,684) 14.39 14.39 868,019 868,019 225,582 17,562,424 17,562,424 868,019 Since17,562,424 Inception (8/19) 16,498,507 (29,684) 225,582 868,019 24.43 17,562,424 22.23 9.36 8.60 7.61 6.08 5.66 4.75
n
Money Market
4.62 875,000 4.54 2.06
Total Portfolio
100.0%
$18,924,881
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GLOBAL GLOBALINSTITUTIONAL INSTITUTIONALCONSULTING CONSULTING
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GLOBAL INSTITUTIONAL CONSULTING
United Methodist Foundation of Louisiana
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UNITED METHODIST FOUNDATION OF LOUISIANA UNITED METHODIST FOUNDATION OF LOUISIANA
12/31
BALANCED FUND
12/31/20
BALANCED FUND SUMMARY BALANCED FUND SUMMARY
4Q2020 4Q2020 Balanced Fund 9.97 UNITED METHODIST FOUNDATION OF LOUISIANA Fund IPSBalanced Benchmark 8.96 9.97 Dynamic Style Allocation Benchmark 10.07 IPS Benchmark 8.96 BALANCED FUND SUMMARY Standard Deviation - Fund Dynamic Style Allocation Benchmark 10.07
Standard Deviation - Fund
StadardFund Deviation - Benchmark Balanced Sharpe Ratio - Fund - Benchmark IPS Stadard BenchmarkDeviation Dynamic Style Allocation Benchmark Sharpe Ratio - Benchmark Sharpe Ratio - Fund Standard Deviation - Fund Sharpe Ratio- Benchmark - Benchmark Stadard Deviation Sharpe Ratio - Fund Sharpe Ratio - Benchmark
4Q2020 9.97 8.96 10.07
YTD 15.00 12.41 13.46
YTD 15.00 YTD 12.41 15.00 13.46 12.41 13.46
1 YR 15.00 12.41 13.46
1 YR 15.00 1 YR 12.41 15.00 13.46 12.41 13.46
3 YR 5 YR 8.77 9.48 7.64 8.53 8.25 9.14 11.49 9.30 10.92 8.81 CURRENT ACCOUNT ALLOCATION 0.63 0.67 CURRENT ACCOUNT ALLOCATION 0.58 0.68
3 YR 5 YR 10 YR* 8.77 3 YR12/31/2020 9.48 5 YR 6.70 10 YR 9.48 6.29 6.70 7.64 8.77 8.53 8.25 7.64 9.14 8.53 6.29 11.49 8.25 9.30 9.14 9.71 10 YR* 9.71 10.92 11.49 8.81 9.30 9.15 6.70 0.63 10.92 0.67 0.63 6.29 8.81 9.15 0.58 0.63 0.68 0.67 0.62 0.63 9.71 0.58 9.15 0.63 0.62
0.68
0.62
CURRENT ACCOUNT ALLOCATION
16.36
Total Portfolio
100.0%
*Portfolio returns prior to 01/01/2013 provided by UMFL
United Methodist Foundation of Louisiana Page 3 *Portfolio returns prior to 01/01/2013 provided by UMFL
GLOBAL INSTITUTIONAL CONSULTING
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INCOME FROM PLANNED GIFTS
Louisiana Methodist Children’s Home
Total Income Since First Planned Gift: $1,098,330
Year Est.
Gift Name
Donor Instructions
2020 2020 Distribution
1980
Brame Fund
All income to LMCH
1983
Neely Trust
20% of income (50% to LMCH, 50% to NO Home)
1984
McKinnon Trust
20% of income to LMCH
$70
1984
McLeod Trust
25% of income to LMCH
$340
1984
Oglesby Endowment
75% of income to LMCH
$206
1991/97
Myrhaugen Gift Annuity
All income to LMCH
$807
1994
Fiandt Gift Annuity
15% of income to NO Home
$33
1995
Fairchild Gift Annuity
All income to LMCH
$2,455
1996
Stagg Trust
40% of income (50% to LMCH, 50% to NO Home)
$6,499
1996
Caraway Endowment
7% of income to LMCH
$600 $4,587
-$409
1996
Hearne Trust
20% of income to LMCH
1997
Stagg Gift Annuity
40% of income (50% to LMCH, 50% to NO Home)
1997
Frye Trust
45% of income to LMCH
$1,036
1999
Wadsworth Endowment
All income to LMCH
$4,007
1999
Wier Gift Annuity
1/3 of income to LMCH
$242
$844
2004
Myers Life Estate
All income to LMCH
$4,077
2005
Peyton Gift Annuity
All income to LMCH
$1,261
2007
Bernard Endowment
All income to LMCH
$2,385
2007
Carrollton
All income to N.O. Home
--
2007
Connaughton
All income to N.O. Home
$130
2007
Austin Trust
1/2 income to N.O. Home
$16,662
2007
Thomas Trust
20% of income to LMCH
2007
Humphreys Endowment
All income to LMCH
$185
2008
Chaffin Endowment
All income to LMCH
$11,342
2009
Ponchatoula UMW
Income Every Three Years
2009
Oak Park UMC
All income to Calcasieu Home
2010
Owens Gift Annuity
1/3 of proceeds to LMCH
2011
Brasher Home
All income to LMCH
$2,081
2011
Anonymous
All income to LMCH
$5,911
2016
Benton Education
Howard School Art Program
$3,892
2019
Means
50% of income to LMCH
$2,512
Total Income 2020:
United Methodist Foundation of Louisiana
$747
$254 $5,048 $908
$79,530
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DEFERRED GIFTS
2020
Louisiana Methodist Children’s Home Year Est.
Gift Name
Donor Instructions
1996
Caraway Trust
10% of income to LMCH
2000
Caraway Trust
20% of income to LMCH
2010
Ben-lesau Trust
50% of income to LMCH
2011
Middlebrooks Gift Annuity
50% of income to LMCH
2011
Ellender Gift Annuity
All income to LMCH
2013
Burleigh Gift Annuity
All income to LMCH
2013
Turnley Gift Annuity
50% of income to LMCH
2014
Burleigh Gift Annuity
All income to LMCH
2014
Burleigh Gift Annuity
All income to LMCH
2014
Roberts CRUT
50% of income to LMCH
2014
Mollere Endowment
40% of income to LMCH
2015
Roberts CRUT
50% of income to LMCH
2015
Burleigh Gift Annuity
All income to LMCH
2015
Turnley Gift Annuity
50% of income to LMCH
United Methodist Foundation of Louisiana
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8337 Jefferson Highway Baton Rouge, Louisiana 70809 225.346.1535 umf.org