News Release -- 2003

Brethren Foundation and Pension investments
help to initiate social change in underprivileged communities

March 6, 2003 Elgin, Ill.

Brethren churches, organizations, and active Brethren Pension Plan members committed to positive social change now have the opportunity to put their investments to work in economically disadvantaged communities both in the United States and abroad through a new Community Development Investment Fund established by Brethren Benefit Trust (BBT).

The Community Development Investment Fund is a form of community investing that directly supports communities in need through four primary sectors of lending – affordable housing, micro enterprise, small business, and nonprofit facilities. Investments are placed with nonprofit lenders and are used to finance affordable homes and small businesses and to help fund agencies working directly with disadvantaged populations and communities.

“This fund allows investors to put their funds directly to work improving communities,” explained Will Thomas, manager of operations for Brethren Foundation. “An investment in this fund works for the investor while at the same time working for a local organization.”

Investments in the Community Development Investment Fund are through the Calvert Foundation, in which Brethren Benefit Trust has invested an initial $100,000 in three Community Investment Notes. The monies are being used in Calvert’s North Central, West, and International community investment regions. Additional amounts invested by Foundation clients and Pension Plan members will be added to these three notes, with more notes to be purchased as additional funds become available.

Although community development investing carries some risk, Calvert’s 10 years of community investment experience and substantial loan loss reserves help to minimize that risk, giving members and clients an expected two- to three-percent rate of return on their investments. Due to limited liquidity in this fund, investors are encouraged to consider this a longer-term investment option.

“Traditional investing emphasizes companies and potential gains and losses, whereas community investing emphasizes people,” said Don Fecher, director of Pension Plan and Employee Financial Services. “The potential in people is limitless.”

In keeping with the policy statements of the Church of the Brethren Annual Conference, BBT is committed to the socially responsible investment strategies of screening, shareholder advocacy, and positive investment. While BBT has a strong history of screening and advocacy, the Community Development Investment Fund gives plan members and clients the opportunity to participate directly in positive investment.

Pension Plan members and Foundation clients may choose to invest in the Community Development Investment Fund and the resulting ministry it provides to communities in need. Due to the risk involved with this type of investment, however, BBT staff suggest the allocation of just one percent of a portfolio. Anyone choosing to invest more than one percent will be required to sign a disclaimer.

“Allocating a small amount and leaving it in place over a longer period of time has a minor impact on individual returns,” explained BBT President Wil Nolen, “but collectively the impact on communities can be significant.”

Individuals and organizations expressing interest in this fund will receive informational materials describing the Community Development Investment Fund as a social-return investment, rather than one focused primarily on financial returns. Included with the informational materials will be a prospectus for the Calvert Community Investment Notes. Foundation and Pension staff will also counsel clients, both individual and agency, before processing a transfer into the Community Development Investment Fund.

Questions related to the Brethren Foundation’s Community Development Investment Fund can be directed to Will Thomas at 800-746-1505 or wthomas_bbt@brethren.org.

Inquiries about the Pension Plan’s Community Development Investment Fund can be directed to Don Fecher, director of Pension Plan and Employee Financial Services at 800-746-1505 or dfecher_bbt@brethren.org.