News Release -- 2004

Brethren Benefit Trust's equity funds significantly outperfom their industry benchmarks

July 30, 2004, Elgin, Ill.

For the first half of 2004, equity (stock) funds managed by Brethren Benefit Trust significantly outperformed their comparable industry benchmarks. During a challenging period for investment managers, BBT achieved this performance relative to broad market indexes while pursuing its socially responsible investment goals.

In the Brethren Pension Plan, the Common Stock Fund gained 6.0 percent for the first six months of 2004 while the Standard and Poor’s 500 Index advanced 3.4 percent. The Balanced Fund returned 3.5 percent while a comparable blended index returned 2.0 percent. The Pension Plan’s Bond Fund matched the performance of the Lehman Brothers Government/Credit Index, with both falling 0.2 percent for the period.

Brethren Foundation’s Domestic Stock Fund picked up 5.8 percent for the first half of the year compared with the Standard and Poor’s 500 Index, which gained 3.4 percent. The Foundation’s Small Cap Fund gained 10.9 percent year-to-date, while the Russell 2000 Index managed a 6.8 percent return. The International Stock Index Fund barely beat the Morgan Stanley Europe/Australia/Far East Index, 4.8 percent compared with 4.6 percent. The Foundation’s Balanced Fund gained 3.5 percent and the Bond Fund, with a 0.2 percent gain, outperformed the Lehman Brothers Government/Credit Index, which lost 0.2 percent.

The Pension Plan’s Common Stock Fund includes allocations to the Small Cap and International portfolios that are offered in the Foundation as separate funds. Returns for those portfolios in the Foundation figures, therefore, are automatically included in the performance of the Pension Plan’s Common Stock Fund. Foundation clients who would like to diversify their investments into these market segments must do so explicitly.

Both the Pension Plan’s Common Stock Fund and the Foundation’s Domestic Stock Fund benefited from strong performance in the value sector for the first half of the year. Value stocks are those that investors believe are trading for less than their true market value. The value portion of each fund gained almost 14 percent over the six-month period, resulting in the overall strong performance for each fund.

“These results for Brethren Benefit Trust investments continue to prove that investors need not give up market returns to invest in a manner consistent with their social values,” said Wil Nolen, BBT president. “Through the BBT investment system, Pension and Foundation members help promote Brethren values while also receiving competitive returns on their investments.”

Each of the portfolios BBT manages excludes securities of companies generating more than 10 percent of their revenues from gambling, alcohol, tobacco, or prime defense contracts. BBT also pursues shareholder actions encouraging corporations to improve their business practices. Pension Plan members and Foundation investors can also direct a portion of their accounts into the Community Development Investment Fund, which supports loans to local community organizations.