News Release -- 2004

BBT's socially responsible investment funds continued to meet or beat most industry benchmarks in 2003

February 23, 2004, Elgin, Ill.

Brethren Benefit Trust’s Pension and Brethren Foundation investment portfolios in 2003 generated returns comparable to those of unscreened portfolios, with most of the funds matching or exceeding their industry benchmarks.

BBT’s investment success has not been short-lived. An analysis of returns over the past five years shows that BBT funds consistently meet or exceed industry benchmarks.

“BBT’s favorable long-term investing performance is continuing proof that screening out firms that don’t conform to Brethren values as part of BBT’s Socially Responsible Investing philosophy does not adversely affect investment performance,” said Wil Nolen, BBT president. “This proves that we can witness to our beliefs by not investing in firms that promote defense, gaming, alcohol, tobacco, or engage in human rights violations, without sacrificing earnings.”

Among domestic equities, the Pension Plan’s Common Stock Fund gained 30.7 percent for the year, earning an annualized return of -0.8 percent over the past five years. The Foundation’s Domestic Stock Fund faired better, gaining 30.9 percent for the year with a five-year annualized return of 0.1 percent. In contrast, the Standard and Poor’s 500 Common Stock Index picked up 28.7 percent for the year and has experienced an annualized return of -0.6 percent for the five-year period.

The Foundation’s Domestic Stock Index Fund was up 28.5 percent for the year and is down an annualized 1.4 percent for five years.

The Foundation’s International Stock Index Fund, which lagged the index slightly, still gained almost 37 percent for the year, compared with an increase of 38.6 percent for the Morgan Stanley Capital International Europe/Australia/Far East Index.

The Pension Plan’s Bond Fund and the Foundation’s Bond Fund Core both gained 5.7 percent for the year, while the Foundation’s Bond Fund picked up 6.5 percent. All three funds outperformed the Lehman Brothers Government/Credit Index, which earned 4.7 percent. The five-year annualized return for BBT’s Bond Fund and Bond Fund Core, 6.8 and 6 percent respectively, are competitive with the Lehman index’s five-year annualized return.

The Pension Plan’s Balanced Fund (60 percent common stock, 40 percent bonds) gained 20.3 percent for the year while the Foundation’s Balanced Fund gained 20.8, producing annualized returns of 2.4 and 3 percent over five years. A blend of the Standard and Poor’s 500 Index and the Lehman Brothers Government/Credit Index was up 19.1 percent and 2.3 percent for the same time periods.

Brethren Foundation’s Short Term Fund gained 1.4 percent in a challenging 2003 while the Pension Plan’s equivalent fund gained .8 percent. These funds have earned 4.5 and 5.1 percent on annualized basis for the five years. The 3-Month Treasury Bill returned 1.2 percent for 2003 and 3.5 percent annualized for the past five years.

“These long-term results underscore BBT’s sound investment system and the quality of the eight fund managers it employs nationwide who manage about $350 million of Pension, Foundation, and general funds,” Nolen said. “Credit also must be given to BBT’s Investment Committee members and staff, who supervise BBT’s investment system.”

Descriptions of Pension Plan and Brethren Foundation investment funds are available at www.brethrenbenefittrust.org. For information on investing or gifting opportunities with the Brethren Foundation, contact Loyce Swartz Borgmann at 800-746-1505.