The Diocesan Common Trust (DCT) was established in 1956 as a pooled investment fund to provide for regular income while maintaining investment value versus inflation. It is a vehicle that is especially useful for those without expertise in investments. Any diocesan congregation or affiliated entity may participate in the DCT. While individuals may not invest, they are are encouraged to contribute towards a fund held by a congregation or entity in the trust.
Oversight |
The diocesan Trustees oversee investment strategy working with professional Investment Managers.
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What it Does |
Pooling assets allows for more effective and efficient investing. The DCT benefits from economies of scale, discounted administrative fees and increased ‘purchasing power’ from access to the institutional share class level resulting in reduced expense and improved performance versus solo entity investing.
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INVESTMENT STRATEGY |
All assets under management are pooled to invest but accounted on a segregated fund basis (like mutual funds). Strategy is reviewed regularly and adjusted for the optimal mix of equities, bonds and alternative assets to meet the goal of providing income and maintaining invest-ment value versus inflation. A long-term horizon allows for accommodation to fluctuating market conditions.
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Distributions |
Participants determine their quarterly distribution amount on an annual basis, limited to five percent of market value. When no distribution is received, assets remain in the account and continue to grow.
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Preformance |
Over six decades, DCT performance (net of fees) has exceeded inflation while providing income to participants. Past performance does not guarantee future results and assets in the fund are subject to risk and may lose value.
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Administration & Fees |
The Diocesan Office administers the DCT for no fees. Establishing a new account, contributing to or withdraw-ing from a current account is processed through the Diocesan Office at any time.
The Trustees and Diocesan Office receive no fees for oversight or administration. Professional investment management fees are about 0.5% per year or less. |
Fixed Distributions |
Determining Distribution: Participants may determine an annual fixed amount of distribution from each of their DCT accounts for the upcoming year. This may be any amount from no distribution up to 5% of the market value of a DCT account at the end of the 3rd quarter of the current year. The annual fixed amount is to be communicated to the Diocesan Office by the end of December. If no communication is received, the Diocesan Office will not generate distributions.
Making Distributions: The Diocesan Office will administer distributions with the Investment Advisor. A distribution of ¼ of the annual fixed amount will be made into the designated bank accounts of participants around the 15th of the month in the middle of each quarter (so February, May, August, November). The Diocesan Office will notify participants when distributions have been made.
Withdrawals: Participants may make a request to withdraw from a DCT account using a form available above. Withdrawal requests may be made at any time. The Diocesan Office will assure restrictions or designations on the account are honored before processing any request.
Making Distributions: The Diocesan Office will administer distributions with the Investment Advisor. A distribution of ¼ of the annual fixed amount will be made into the designated bank accounts of participants around the 15th of the month in the middle of each quarter (so February, May, August, November). The Diocesan Office will notify participants when distributions have been made.
Withdrawals: Participants may make a request to withdraw from a DCT account using a form available above. Withdrawal requests may be made at any time. The Diocesan Office will assure restrictions or designations on the account are honored before processing any request.