Investment Fund

Our Mission

Following the guidance of Jesus Christ, the Investment Fund Committee supports the mission, core values and vision of The Episcopal Diocese of Northern California and its congregations. The Investment Fund Committee helps provide continuity and growth for congregations in the Diocese by stewarding the funds of the Diocese entrusted to its care, serving as a custodian, prudently investing the funds for income and growth and providing loans to congregations and other diocesan entities to support their missions in the service of God.

Our Vision

The Investment Fund Committee strives to effectively and prudently manage the diocesan and congregational funds entrusted to its care, achieving an appropriate balance between risk and gains, such that all congregations will seek to invest their funds in the Investment Fund and through that provide a unique source of funding for advancing the work of God in the Diocese.

Socially Responsible Investing (SRI)

SRI Diocesan Investment Policy Statement

As Fiduciaries, this committee and Investment Policy Statement must make decisions in the best interest of all beneficiaries regardless of individual parish, or personal preferences or values. However, a parish may direct the Investment Fund Committee to invest the particular funds of that Parish to be in a diversified account which follows the UN Principles of Environmental, Social and Governance guidelines. The Parish in so doing this direction, makes the Investment Fund Committee and the Diocese of Northern California Directed Agents; only for this investment direction. All other Fiduciary Responsibilities and requirements on the part of the Investment Committee and Diocese stand as with the Funds A, B and C.

Download the full updated Investment Fund Policy here

Download the ESG Fund D Presentation here

The “D” Fund hereafter known as the “ESG Diversified Fund“, will be solely devoted to Environmental, Social, and Governance investing in a proactive way.

The fund aims to be investing in companies based on current ESG scores & ratings-provided by the United Nations Principles for Responsible investment Policy. The priority is to generate returns while also avoiding misaligned companies and engaging companies to increase their social responsibility.

The D fund will be available to invest into, as of 2021!

For informational purposes only, the following definitions are what guide the investment selection, rather than a list of companies that may or may not be held at any one time in history:

Environmental: How a company performs as a steward of the natural environment. Examples include a company’s carbon footprint (climate change), energy sources (natural resources), and pollution standards.

Social: A company’s relationship with its stakeholders, predominantly employees. Examples include working conditions, employee diversity, product safety, and data privacy/security.

Governance: The quality of a firm’s governance practices from the perspective of its shareholders. Examples include executive compensation, Board structure, and accounting standards.

About the Investment Fund

The Investment Fund of The Episcopal Church in the Diocese of Northern California is a collective investment fund available to congregations, the Diocese itself and diocesan organizations. The purpose of the Fund is to allow those organizations to take advantage of economies of scale and diversification in an effort to promote greater investment return and efficiency, and to further their charitable objectives.

Among the investments are loans to congregations and diocesan organizations for new construction and major renovations, and to clergy for housing. So not only does the Fund bring professional management to many institutions in the diocese, but also it advances its mission by allowing congregations to grow.

The Fund was established by the Diocese through the actions of the Bishop, the Board of Trustees and the Convention in 2013. It succeeded the Episcopal Church in the Diocese of Northern California Endowment Trust (sometimes known as the Endowment & Memorial Trust) founded in 1975.

The Board of Trustees of the Diocese appoints the Investment Fund Committee, which is responsible for day-to-day operations.

Although this was an important change in structure, those who administer the Fund – the Investment Fund Committee, the investment advisor and the custodian — have not changed.

The Investment Fund Committee does not offer advice regarding planned giving. Those seeking such advice should contact the Episcopal Foundation of Northern California. It works with congregations to enhance their planned giving results. The Investment Fund Committee encourages you to go to the Foundation’s website to obtain more information on planned giving.

The Investment Fund operates as a program of the Diocese under the 501(c)(3) non-profit status of the Diocese. It is governed by the Investment Fund Committee, composed of at least five and no more than eleven members including the Bishop, who are appointed by the Board of Trustees upon the recommendation of the Bishop on an annual basis, with no limitation on the number of annual terms that can be served. View a list of current members.

The Investment Fund Committee receives funds from the Diocese, diocesan organizations and congregations, and invests the money in one or more of three funds according to the wishes of the depositor of the funds. View investment transaction guidelines.

U.S. Bank is the fund custodian and provides investors with monthly statements of activity. The current manager of the funds on behalf of the Investment Fund is HighMark Capital Management. U.S. Bank assesses custodian and advisor fees to follow Section 2.8 of the Investment Policy, which provides that fees and expenses from outside vendors are to be charged pro rata to each investor.

Three funds are invested according to the Investment Policy adopted by the members of the Investment Fund Committee and approved by the Board of Trustees.

The A fund, known as the Balanced Fund has as its primary goal growth of principal and production of income with a moderate risk tolerance.

The B fund, known as the Income Fund is invested predominantly in bond funds and is designed to produce a reasonably reliable flow of income with minimal risk of loss of capital. The time horizon on the bonds is 2-5 years. To provide a hedge against inflation up to 25% may be invested in a low risk equity or balanced fund or low risk alternative investments.

The C fund, known as the Money Market Fund, is invested in money market and short-term bond funds with a time horizon of less than one year. It is designed to provide liquidity with very modest returns.

For more details, view the Investment Policy tab below this one, or click here.

The Investment Fund includes a portfolio of loans to congregations, diocesan organizations and clergy. Loans are predominantly for capital projects pursued by congregations. These loans are made by application of a congregation or other entity and require the approval of the diocesan Project Review Committee, the Investment Fund Committee, and the Standing Committee and are executed upon recommendation of the Bishop.

Here are the Loan Application guidelines. The interest rate is variable and is determined by the Investment Fund Committee on an annual basis. The current interest rate can be found on the Current Interest Rate tab, or click here. The interest rate is kept as low and as stable as market conditions permit but since the loans represent investments by other congregations in the Diocese the return must be sufficiently high that the Investment Fund Committee can attract investments from congregations in the Diocese. Loans are generally secured by deeds of trust on the property of the borrowing congregations. Find the loan policy in the Loan Policy tab, or click here. While the Investment Fund Committee maintains a loan loss reserve, it has never written off a loan.

Investment Fund Statement & Policy

Instructions for Deposits, Withdrawals & Transfers

Account Requirements

All accounts must maintain a minimum balance of $500 in each fund open within the account. If a fund falls below this minimum, you must either deposit sufficient funds to bring it over $500, transfer the balance to another fund or account that meets the requirement, or close the fund and withdraw the balance.

Download the Account Under $500 Withdrawal/Transfer Form here.

Setting Up New Accounts

The diocesan accounting staff at the Office of the Bishop will facilitate the set-up of new accounts. Please contact Kati Braak, Director of Operations, at 916-442-6918, ext. 228, to start this process. In order to open a new account, minutes of a resolution authorizing the action must be provided along with the completion of the Investment Agreement Form for New Accounts.

Download a suggested form of the resolution here.

Download the Investment Agreement Form for New Accounts here.

Getting a Loan

Please review all instructions below before completing the Loan Application Package:

A portion of the funds held by the Investment Fund are available to lend to congregations and diocesan institutions. These loans are part of the investment portfolio providing earnings to the investors in the Investment Fund. To preserve the integrity of these earnings those who wish to borrow funds from the Investment Fund are required to complete an application that will be subject to a multi-step review process.

The interest rate on these loans is variable. The rates are reviewed each year at the Investment Fund Committee’s October meeting and maybe reset effective January 1 of any given year.
Please see Current Interest Rates tab for more information.

The amortization period is somewhat negotiable and prospective borrowers are encouraged to propose terms that meet their specific needs.

Before a loan may be granted the congregation or institution must be in compliance with Title I, Canon 7, Section 4 of the Canons of the General Convention of the Episcopal Church. This canon states that, “All real and personal property held by or for the benefit of any Parish, Mission or Congregation is held in trust for this Church and the Diocese thereof in which such Parish, Mission or Congregation is located.” This canon was affirmed by our Diocesan Convention in 2007. Compliance requires a review of the congregation’s title documents and possible revision.

Download the Parish Loan Application Instructions

Download the Clergy Loan Application Instructions

The completed Loan Application Package should be submitted to Kati Braak, Director of Operations, via email at kati@norcalepiscopal.org.

Loan Policy

We, members of the Investment Fund Committee serve two constituencies in the Diocese: 1) The Diocese, congregations and diocesan entities that invest their funds in the Investment Fund, and 2) Congregations and diocesan entities which want to borrow from the Investment Fund to make capital improvements. We have also made three loans to clergy. Download the Clergy Loan Application Instructions here.

Our obligation to the first group is to make sure the investment portfolio is diversified so that risk is not concentrated in a few investments. Funding loans for capital improvements supports our Diocesan Vision, which says in part, “Healthy congregations will be well-organized, well-administered, adequately resourced, and appropriately housed.”

We on the Investment Fund Committee are concerned that because loans are becoming an increasing portion of the total portfolio, a policy is needed. Therefore in June 2012 we agreed to the following guidelines:

Loans may be as much as $1 million provided they finance construction for new congregations. For example, such a large loan would be possible for a mission currently in rented space desiring to build a new facility. Loans of this magnitude would be secured by a first deed of trust.

Smaller loans are available for additions and renovations to existing plant. We prefer first deeds, but we may accept second mortgages in this category.

We may approve new loans to existing borrowers, those who have a current loan and an excellent payment record, and wish to take on a new project.

We will not consider loans to congregations and diocesan entities which have an existing loan elsewhere, and want to borrow from the Investment Fund instead, in order to get a lower rate.

Of course all the past criteria still apply. We will lend to financially healthy congregations and those with a history of paying their debts on time. We will only consider projects funded by not only the loan but also existing reserves and pledges.

Current Interest Rates

Investment Funds A,B,C, D Quarterly Reports

Investment Funds A,B,C Quarterly Reports

The latest quarterly report will be published here after the regularly scheduled Investment Fund Committee meeting reviews and approves.

2022

2021

2020

2019

Access Account Information Online

To pull your church’s statement, visit US Bank’s online portal “Pivot”: https://pivot.usbank.com

Click here to download instructions for how to pull reports through Pivot

To grant an individual online access: Download the Add Online Authorization Form here

To revoke an individual’s access: Download the Delete Online Authorization Form here

Once completed and signed, send the form to:

Email: accountant@norcalepiscopal.org

Mail: 350 University Avenue, Suite 280 Sacramento, CA 95825

Fax: 916-442-6927

Investment Fund Committee Members

The Rt. Rev. Megan Traquair

Bishop of The Episcopal Diocese of Northern California

Learn more about the bishop here.

Sharon Morrison

Member and Chair
sharon.morrison@trunorthwp.com
Phone: 916-599-6875
Occupation: Wealth Advisor

Past and Present Church Service:

Faith Episcopal Church, Cameron Park—Vestry member, Drama Team Director, Small Group Leader, Search Committee, Diocesan Convention Delegate, Education for Ministry (EfM) Mentor.

Investment and Other Backgrounds:

Wealth Partner, TruNorth Wealth Partners, LLC, advising foundations, endowments, multi-generational families and high net worth individuals
Seattle Pacific University, Speech Communications
Certified Financial Planner
Accredited Investment Fiduciary
Theology Certificate, University of the South at Sewanee
Former trust officer and operations manager of regional bank

Tina M. Treis

Member and Vice-Chair
tinatreis1@gmail.com
Occupation: Certified Public Accountant, Inactive

Past and Present Church Service:

St. John’s, Roseville: Senior Warden, Vestry, Chair of Finance Committee, Treasurer
Investment Fund Committee member since 2012

Investment and Other Background:

California State University Sacramento, BS Accounting
Certified Public Accountant, Inactive
Retired Partner, Crowe LLP, a national public accounting firm
University Foundation Sacramento State, board chair
CSUS Sacramento Alumni Association: past president, life member, director

Elizabeth McClatchy

Member
evmcclatchy@gmail.com
Occupation: Nonprofit Executive, retired

Past and Present Church Service:

Trinity Cathedral, Sacramento: vestry, treasurer
Diocese of Northern California: Board of Directors, Standing Committee, Diocesan Council
Diocese of Northern California Investment Fund Committee: member since 2008

Investment and Other Background:

California State University Sacramento: BA mathematics
President & CEO of Safety Center Incorporated
Former bank director & chair loan committee, vice president of bank trust department

Peter Juvé

Member
pjuve@aol.com
Occupation: Retired Business Executive

Past and Present Church Service:

St. Mary’s, Napa: Sunday school teacher, Foundation committee, vestry, finance committee, Profile Committee.
Episcopal Foundation of Northern California: Director and Chair of Board

Investment and Other Background:

The University of Texas, Austin BBA Accounting
Golden Gate University, MS Taxation
Chevron Corporation 34 years in accounting, finance, comptroller and operations
Advisory Board member of non-profit providing services and work training programs to those dealing with homelessness, food insecurity, addiction and emergency services during times of disaster.

Bob Hall

Member
Bdh1080@comcast.net

Occupation: Retired Retail Executive

Past and Present Church Service:

St. Paul’s Episcopal Church, Benicia:
Vestry, Sr. Warden, Stewardship Chair, Lay Preacher, LEM
Diocese of Northern California:
Board of Trustees, Co-Chair Budget & Finance Committee
Other Background:
Chief Operating Officer, public and private retail organizations Willamette University, Economics & Political Science

Interested in Joining?

Click here to download an Investment Fund Committee Member Application.

Submit your completed application to Kati Braak (kati@norcalepiscopal.org)

Mail:
Episcopal Diocese of Northern California
c/o Kati Braak
350 University Avenue, Suite 280
Sacramento, CA 95825

Fax: 916-442-6927

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Investment Fund

Investment Fund

Our Mission

Our Vision

SRI Diocesan Investment Policy Statement

About the Investment Fund

Investment Fund Statement & Policy

Instructions for Deposits & Withdrawals

Account Requirements

Setting Up New Accounts

Getting a Loan

Loan Policy

Current Interest Rates

Investment Funds A,B,C Quarterly Reports

Access Account Information Online

Investment Fund Committee Members

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