The Diocesan Common Trust (DCT) is a pooled investment fund established by canon that may be utilized by the diocese, its various congregations and any organization affiliated with the diocese. Individuals may not invest, but may gift their congregation to invest in the DCT.

Oversight

The Trustees of the Diocese of Fond du Lac oversee the DCT and employ the services of JPMorgan as investment advisor.

What it does

The DCT is a pooled fund that invests for all participants on a large scale, even those whose investment may be a small amount. The combined market value of the DCT is over five million dollars, with participant's individual investments as small as $27. Economies of scale decrease administrative costs and increase ‘purchasing power’.

Investment Strategy

Like an individual investing in a vehicle like a mutual fund, when a contribution is received, it is pooled in the DCT, but accounted for separately. JPMorgan invests the DCT according to direction of the Trustees who review investment strategy on an annual basis. Current strategy provides a balanced mix of equities and bonds with allowance for fluxation based on market conditions. Participants receive a distribution each quarter equal to 1% of the market value (or 4% per year).

Investments are subject to risk and could lose value. Past performance does not determine future earnings, but long-term market trends combined with the 4% annual distribution raises the likelihood participants will both earn income and increase the investment's value above inflation. When this happens, it is a win-win situation.

The Diocesan Common Trust is designed to provide a steady revenue stream and investment growth with little effort by the participant.

Past Performance

In its history, the DCT's return performance has exceeded 7% per year (after fees). Using this return, a congregation investing $5,000 ten years ago (with no additional contributions or withdrawals) would now have an investment worth $10,000 and received about $3,000 in distributions over the ten years.

Established Funds in the DCT

Funds are created with contributions made through the Diocesan Office. Contact the Diocesan Office to request a ‘Creating New Funds’ form.

Withdrawing Funds

A participant may withdraw funds with no penalty. An authorized body (e.g. the Vestry) must approve the withdrawal and the Trustees must accept the request to withdraw.

Fees

At current levels, administrative fees to JPMorgan (which are deducted across funds based on their pro rata portion of total investment) are less than 0.8% per year The Trustees receive no compensation for their oversight.

The Diocesan Common Trust (DCT)

An investment vehicle that:

• offers opportunity for giving by individuals to support the mission and ministry of the Church;
• provides steady, regular income to the Church;
• builds assets of the Church.

Benefits of the DCT:

• Little effort from the participant to obtain benefits;
• Professional oversight and handling of investments, regardless of size, large or small;
• Lower costs compared to other investment vehicles;
• Predictable and steady revenue stream;
• Probable long-term growth of assets, often above the rate of inflation.