2 0 1 4 - ccftx.org · April 27 Devine Mercy Sunday, Pope Francis canonized Pope John XXIII (1881-1963) and Pope John Paul II (1920-2005). St. John XXIII and St. John

A N A U T O N O M O U S

P I O U S F O U N D A T I O N

I N V E S T I N G I N F A I T H ,

F A M I L Y A N D F U T U R E

CATHOLIC COMMUNITY

Foundation

Investing in Faith, Family and Future

2 0 1 4T H E Y E A R I N R E V I E W

Whatever is true, whatever is honorable,

whatever is just, whatever is pure,

whatever is lovely, whatever is gracious,

if there is any excellence and

if there is anything worthy of praise,

think about these things.

philippians 4:8

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c h a i r m a n ’s n o t e

Through the grace of Almighty God I am pleased to present this 2014 Year in Review for the Catholic Community Foundation and its subsidiary, the Catholic Fraternity Fund. There are many highlights featured in this short report and many people to thank for the growth of our unique ministry of investment management services beginning with our Board of Trustees, committee members, staff and advisors.

This year has been a true “break-out” year for the foundation characterized by unprecedented growth in service to the Church.

I am pleased to report that the majority of our account growth in 2014 came from the parish sector - the heart of our Church. Parish accounts increased by an incredible 62.5% in 2014. In addition to that, in the fourth quarter of the year, we opened our ministry to the broader Church extending our investment management services beyond the boundaries of our home archdiocese in service to other bishops and their dioceses, as well as to Catholic foundations who would like to avail themselves of being part of a larger investment pool to lower costs and increase investment opportunities – along with a guarantee of compliance to the Socially Responsible Investment guidelines aligned with the tenets of our faith.

The cornerstones of our work are confidence, competence and confidentiality. We hold these traits dear as our energies are fueled by the intimacy of our Catholic faith which keeps us focused, provides continuity in our work of service, and supports the momentum of our mission giving us the courage to heed Our Savior’s words, “Do not be afraid!”

Ruben M. Escobedo, CPAChairmanBoard of Trustees

Take courage, it is I,

do not be afraid!

MATTHEW 14:27

O u r M i s s i O n

a n d

O u r M i n i s t r y

To manage, grow

and protect the

financial investments

of our Church.

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2014 – The Year in Review Timeline

January 7

A new Legacy Endowment Program was unveiled – Our Legacy Endowment Program was designed to serve as a special resource to donor’s wanting to help a particular parish, Catholic institution or ministry. The program is part of the foundation’s Legacy and Planned Giving service to Catholic families and is meant to secure life’s greatest endowment: Faith, Family and Future. The program consists of assisting donors with the purchase of life insurance to be used for the long-term funding for an existing endowment or to establish a new endowment. The program is available exclusively through the Catholic Community Foundation.

March 13

Marked the first anniversary of Pope Francis’ election.

February 3

Milestone reached: Our 70th account was opened.

February 19

Milestone reached: Our managed assets reached $70 million.

0 10M 20M 30M 40M 50M 60M 70M

68 Managed Funds68 Managed Funds

90 Managed Funds

12/31/13

6/30/13

12/31/14

Year

6/30/12

6/30/11

6/30/10

6/30/09

6/30/08







$61,530,578

$73,349,936

$46,980,285

$31,612,912

$31,492,505

$25,896,694

$19,547,269

$19,856,095

Historic Growth - Assets Under Management

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April 27

Devine Mercy Sunday, Pope Francis canonized Pope John XXIII (1881-1963) and Pope John Paul II (1920-2005). St. John XXIII and St. John Paul II, pray for us!

May 6-8

The first-ever National Convocation of the 28 Catholic community foundations in the United States was held in Chicago. The gathering was convened by Cardinal Robert Sarah, president of the Pontifical Council Cor Unum and co-sponsored by the Catholic Community Foundation and the Catholic Fraternity Fund along with Christian Brothers Investment Services. Topics discussed were the Apostolic Letter entitled, The Church’s Deepest Nature – On the Service of Charity, which speaks to the work of Catholic foundations, best practices, civil law compliance and protection of assets.

May 9

Newest members of the Good Shepherd Legacy Society were installed at San Fernando Cathedral by Chairman Ruben Escobedo along with Archbishop Gustavo García-Siller, M.Sp.S. Members installed were Monsignor Lawrence J. Stuebben, Margie and Bill Klesse, Vivian Vance, Raymond Hannigan, Clifton Bolner and Jeff Jung.

Milestone reached: The Foundation issued its annual endowment distributions. For the first time in the foundation’s history the distributions from its endowed and donor advised funds totaled more than one million dollars. Distribution checks totaling $1,286,066 were issued to members.

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June 7

Archbishop Gustavo Garcia-Siller, M.Sp.S. consecrated the Archdiocese of San Antonio to the Holy Spirit with the prayer that we shall all have the grace to be faithful daughters and sons of God.

June 23

Milestone reached: The Foundation opened its 30th parish account.

September 3

San Antonio businesswoman Rosemary Kowalski established the San Fernando Cathedral Endowment Fund in association with the Historic Centre Foundation.

Milestone reached: The Foundation opened its 80th account.

June 30

Milestone reached: The completion of our first-ever audit for compliance to the United States Conference of Catholic Bishops’ Socially Responsible Investing (SRI) guidelines. The purpose of the guidelines is to ensure that all Church funds are managed in accordance with the tenets of our Catholic faith. The Catholic Community Foundation/Catholic Fraternity Fund was the first Catholic community foundation in the U.S. to conduct such a stringent review. The results showed a compliance rate of 98.25%, which is deemed excellent. Nonetheless action was immediately taken on the remaining 1.75%.

“Living our

Faith”

5

6

the cornerstones of our work are

ConFidenCe, CoMpeTenCe And ConFidenTiAliTy

october 14

Archbishop Gustavo García-Siller, M.Sp.S. celebrated his 4th anniversary as the Metropolitan Archbishop of San Antonio.

october 20

Milestone reached: The Foundation opened its 40th parish account.

december 27

The Catholic Community Foundation received the largest unrestricted gift in its history - $500,000. This gift was thanks to the generosity of Good Shepherd Legacy Society members Margie and Bill Klesse and it was used to underwrite the ongoing growth of the foundation. Margie Klesse was a long-time member of the foundation’s Board of Trustees.

december 31

2014 was a record-breaking year with a 32.4% increase in the number of accounts and a 19.2% increase in assets under management.

october 1

The Catholic Community Foundation and the Catholic Fraternity Fund moved to their new, permanent offices in San Antonio’s northwest Medical Center area.

october 13

The Catholic Fraternity Fund, a wholly owned non profit subsidiary of the Catholic Community Foundation was officially launched nationwide.


Goodbye and Thank You to Departing Trustees

In 2014 seven trustees retired from service to the foundation: Ed Benninger (our Founding Chairman), Charlie Amato, Esther Belz, Michael Ciskowski, Richard Dietz, Christopher Fashek, and Steve Potter.

Thank you for your service!

Ed BEnningEr

fOunding chariMan

richard diEtz

EsthEr BElzcharliE aMatO

christOphEr fashEk

MichaEl ciskOwski

stEvE pOttEr

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Welcome and Thank You to Our New Trustees

In 2014 six new trustees were elected: Fr. Anthony Cummings, Norman Elder, Mona Mengler, Sr. Madonna Sangalli, CDP, Edward Speed, and Vivian Vance (who had previously served on the board).

Thank you for being a part of this unique ministry in service to the Church.

mona menglernorman elderrev. anthony o. cummings

vivian vanceedward speedsr. madonna sangalli, cdp

As each one has received a gift, use it to serve one another as good stewards of God’s varied grace.

1 peter 4:10

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First Ever National Convocation of Catholic Community Foundations: “Many Ministries, One Heart – Defining Our Ministry in the Universal Church”In 2013 the Catholic Community Foundation/Catholic Fraternity Fund began working with the Pontifical Council Cor Unum to produce the first ever gathering of Catholic Community Foundations in the U.S. The event was held May 2014, in Chicago, and our cosponsor for the event was Christian Brothers Investment Services. Twenty-eight Catholic Community Foundations, with assets totaling over $2 billion, were welcomed by the late Cardinal Francis George. Cardinal Robert Sarah, President of the Pontifical Council Cor Unum, delivered the keynote address. Catholic Community Foundation President/CEO Robert Aguirre served as the Master of Ceremonies for the event which focused on defining Catholic foundation ministry in our Church today as well as issues of legal compliance and protection of assets.

Our Investment Committee – The Heart of Our Ministry Under the leadership of Committee Chairman, Deacon Harry Flavin, the Investment Committee continues to do stellar work in advising the foundation on its investments, assuring our compliance to the tenets of our faith through Socially Responsible Investing and preserving and growing our member’s assets. The Investment Committee, with the support of Elizabeth Crawford our chief investment adviser, is committed to our objective of long-term perpetual growth of assets and protection of capital, which sometimes means having a willingness to temporarily accept lower returns in times of market uncertainties and risk.

Committee members include Rich Dietz, Mark Mays, Steve Dufilho, Mike Gillespie, Clifford Gladson, Sr. Madonna Sangalli, CDP, Mike Ciskowski and Robert Aguirre.

deacon harry m. flavin

elizabeth crawford

The Good Shepherd Legacy Society

The Good Shepherd Legacy Society serves to promote thoughtful and effective Catholic philanthropy.

The Legacy Society recognizes those who have designated the Catholic Community Foundation as their giving

vehicle in their stewardship and/or in their estate plan as a reflection of their commitment to their faith

and their values.

Congratulations and thank you to our Good Shepherd Legacy Society Members!

Legacy Society members are exemplary witnesses and participants in our Catholic faith as they fulfill

the Baptismal call to be leaven in the world, salt of the earth and a light to our nation.

Adele and Stephen Dufilho

Cynthia and Mark Hoffmann

Rosemary Kowalski

right:

Cardinal Robert Sarah bestowing the Good Shepherd Legacy Society medallion

upon Bill Klesse in San Fernando Cathedral with Ruben Escobedo, CCF Chairman and Archbishop Gustavo García-Siller, M.Sp.S.

top right:

Stained glass window in St. Joseph’s Chapel at Assumption Seminary, San Antonio, Texas

New Members Inducted for 2014Good Shepherd

Legacy Society

Members

Clifton Bolner

Raymond Hannigan

Jeff Jung

Margie and Bill Klesse

Rev. Msgr. Lawrence Stuebben

Vivian and Louis Vance

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0 10M 20M 30M 40M 50M 60M 70M


90 Managed Funds

12/31/13

6/30/13

12/31/14

Year

6/30/12

6/30/11

6/30/10

6/30/09

6/30/08







$61,530,578

$73,349,936

$46,980,285

$31,612,912

$31,492,505

$25,896,694

$19,547,269

$19,856,095

Historic Growth - Assets Under Management

0

5%

10%

15%

20%

25%

Return

2009 2010 2011 2012 2013 2014

11.75%13.13%

11.70%

2.60 %0.14%

21.62%

Annual Net Returns on Investments

While aggregate net gains for our members across all investment models in 2012 and 2013 were 13.13% and 11.70% respectively, 2014 proved to be a year of tran-sition and market uncertainty.

The foundation made changes to the asset allocation models offered to its members in order to position them for opportu-nities over the next five years while trying to reduce exposure to market uncertainties. These changes reduced short-term per-formance although the market continued to rally.

The year 2014 ended with much uncertainly in the market so faithful stewardship called for a path focused on investing for capital preservation for the long-term while protecting the assets of our members.

2014 - By the Numbers

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Fund Growth by Category and Amounts

Fund Growth by Amounts

2012

2014

2013

Catholic Education

Parishes

Religious Congregations

Catholic Institutions

Endowments

$26,440,277

$37,110,055

$47,731,516

$8,358,083

$17,860,854

$16,523,881

$211,293

$334,498

$358,658

$3,062,661

$4,039,130

$7,198,776

$1,115,597

$2,186,041

$1,537,105

$61,530,57857% Growth

2013

$73,349,93619.2% Growth

2014

$39,187,9112012

0 5M 10M 15M 20M 25M 30M 35M 40M

Fund Growth by Category

0

5

10

15

20

25

35

30

Catholic Education

Parishes



Endowments

2012 2013 2014

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Total = 47 funds Total = 68 funds Total = 90 funds

14

23

12

26

23

14

40

5 6

14

27

3

16

8

Number of funds

12

0

5

10

15

20

25

35

30

Catholic Education

Parishes



Endowments

2012 2013 2014

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standing (l-r): Robert Bernal Aguirre, Helene deuley, Sandra lopez, Jeff Jung seated (l-r): erik Aagaard, elizabeth Crawford, Amaury de Barros Conti

Board of Directors

CHAIRRuben M. EscobedoCEO, Ruben Escobedo & Co.

VICE CHAIRDeacon Robert KusenbergerCEO, Westex Capital Ltd.

SECRETARY/TREASURERStephen M. DufilhoInvestments

Robert B. AguirreCCF/CFF President & CEO

Ray E. BerendCPA

Very Rev. Lawrence ChristianVicar General, Archdiocese of San Antonio Pastor, St. Francis of Assisi Catholic Church

Rev. Anthony O. CummingsRetired Pastor, Archdiocese of San Antonio

Norman ElderInvestments

Deacon Harry FlavinPrincipal, Matterhorn Capital Management, L.L.C.

Most Rev. Gustavo García-Siller, M.Sp.S.Metropolitan Archbishop of San Antonio

Frank M. Kudla, Jr.President & COO, FNK Ventures, L.L.C.

Rev. Martin J. LeopoldModerator of the Curia, Archdiocese of San Antonio Pastor, Our Lady of Grace Catholic Church

Mona MenglerCommunity Volunteer

Rick MolinaOwner, Mesquite Country Enterprises

Eric C. OpielaAttorney at Law

George J. PersonAttorney at Law, Person, Whitworth, Borchers & Morales, L.L.P.

Sr. Madonna Sangalli, CDPTreasurer, Sisters of Devine Providence (Retired)

Edward SpeedCEO/President, Dow Employees Credit Union (Retired)

Vivian VanceBusinesswoman

The Operations TeamThe day-to-day team working on behalf of the Catholic Community Foundation’s ministry consists of CCF staff Robert B. Aguirre, Jeff Jung and Helene Deuley; Sendero Wealth Management staff Elizabeth Crawford and Amaury de Barros Conti (investment advisors); Sandra Lopez, CPA, of the San Antonio Area Foundation (accounting services) and Erik Aagaard of The Trust Company (custodial services). Each member of the team works every day on behalf of the ministries of the Catholic Community Foundation.

Socially Responsible Investing

It is vitally important that our management of investments adhere to the teachings of our faith. Accordingly, all investments are guided by the United States Conference of Catholic Bishops’ statement on Socially Responsible Investing (SRI).

In 2014 the foundation commissioned its first-ever SRI audit of its holdings. This was done to verify that the various money managers who buy and sell our investments are, in fact, adhering to the guidelines provided to them. The audit found a 98.75% compliance rate in our investments. The noncompliant 1.25% was immediately addressed.

Members of the Catholic Community Foundation and the Catholic Fraternity Fund are assured that their funds are managed in strict accordance with our faith.

Our Mission and Our Ministry is to manage, grow and protect the financial investments of our Church.

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Disclaimer

Our Patron – St. MatthewThe Episcopal Decree that created The Catholic Community Foundation for the Roman Catholic Church of the Archdiocese of San Antonio as an Autonomous Pious Foundation was signed on September 21, 2007 at San Fernando Cathedral, on the feast of our patron – St. Matthew (the patron saint of bankers and accountants).

Pope Francis and St. MatthewThe disciples must have been shocked when Jesus called Matthew, the unworthy tax collector, to follow him. The unique Latin phrase used by the English monk, the Venerable Bede (673-735), to describe the calling of Matthew was “miserando atque eligendo” - roughly translated: “Jesus had mercy on him and chose him.”

Our beloved Pope Francis said he discovered his priestly calling when he was seventeen years old after going to confession on the feast day of St. Matthew. As Pope Francis, his Episcopal coat of arms bears the very words attributed to the unworthy tax collector –

miserando atque eligendo

J esus had mercy on him and chose him.

The Catholic Community Foundation for the Roman Catholic Church of the Archdiocese of San Antonio, Inc. (“CCF”) is an Autonomous Pious Foundation formed under Canons 1303, §1,1 and 114, §2 and is a non-profit corporation domiciled in Texas. The Catholic Fraternity Fund, LLC (“CFF”) is a wholly owned subsidiary with a nonprofit purpose. Neither CCF nor CFF is a bank and neither is insured by the federal government.

CCF and CFF exist to provide financial management services solely to institutions, dioceses, cemeteries, parishes, religious congregations or other organizations that appear in the Official Catholic Directory. It also serves the needs of the giving faithful who wish to support Catholic ministries through their will/bequest or by establishing a Donor Advised Fund or an endowment.

Clients are advised to seek competent professional legal, tax and/or financial advice when donating to or depositing funds with CCF/CFF. Many factors affect investment performance including changes in market

conditions and interest rates as well as responses to other economic, political or financial developments. Investments are subject to market risks, including a reduction or loss of capital, and past performance is neither a guarantee nor an indication of future results. The services of CFF may not be available in every state.

Contributions and donations to CCF/CFF are generally tax deductible (under I.R.C. 501(c)(3)), but donors should seek professional tax advice as each case is fact dependent.

Members and potential members are advised that CCF/CFF is exempt from registration under the Securities Act of 1933 and the Exchange Act of 1934 and is exempted from the application of the Investment Advisor Act by virtue of the provisions of the Philanthropy Protection Act of 1995.

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8122 Datapoint Drive, Suite 804, San Antonio, Texas 78229 • Telephone: 210.732.2157 • www.ccftx.org • www.catholicfund.us

CATHOLIC COMMUNITY

Foundation

Investing in Faith, Family and Future

A N A U T O N O M O U S P I O U S F O U N D AT I O N

I N V E S T I N G I N FA I T H , FA M I LY A N D F U T U R E

• E n d o w m E n t F u n d s

• d o n o r A d v i s E d F u n d s

• E s tAt E A n d P l A n n E d G i v i n G

• d E P o s i to ry Acco u n ts

• i n v E s t m E n t Acco u n ts

All funds are managed and invested in accordance with the tenents of our Catholic Faith.

Documents

2 0 1 4 - ccftx.org · April 27 Devine Mercy Sunday, Pope Francis canonized Pope John XXIII (1881-1963) and Pope John Paul II (1920-2005). St. John XXIII and St. John