NCUF Charitable Lead Trust Fact Sheet

Investment Management

  • MEMBERS Trust Company has been an investment leader in designing portfolios using Exchange-Traded Funds (ETFs) as core holdings. In a 2008 survey on Forbes.com, MEMBERS Trust Company was the top ranked ETF provider. ETFs give an investor the advantage of owning a group of securities like a mutual fund, but offer the investor the flexibility to trade the basket of securities anytime during daily trading hours.
  • The Investment Objective for the ETF Income Portfolio shall be to maximize current income while continuing to provide some opportunity for capital growth through participation in the U.S. and International equity markets. The majority of the portfolio shall be allocated to fixed income.
  • Prior to opening the Charitable Lead Trust, the donor credit union will sign an Investment Policy Statement (IPS) that governs the investment management of the trust, prepared by MEMBERS Trust Company in its role as trustee and investment manager. The IPS will state the investment objective, asset allocation ranges, duration, and benchmark for the trust.
  • MEMBERS Trust Company, FSB, as trustee, will monitor and track the performance of the ETF Income Portfolio to rebalance investments and keep the portfolio within the asset allocation range stated in your IPS.

An Investment Success Story of MEMBERS Trust Company, FSB

As a federal savings bank, federal statute requires us to invest 65% of our capital in Mortgage-Backed Securities (MBSs) to support home mortgages. Our choices to meet this legal requirement included MBSs issued by Government-Sponsored Enterprises (GSEs), privately issued MBSs and CMOs with various payment tranches. After reviewing the risk and return on these securities, we allocated our capital investments to MBSs issued by GSEs and avoided privately issued MBSs, even though they were highly rated and offered a higher yield. Our portfolio escaped the massive losses many experienced with this sector.

Holdings in Charitable Lead Trust

Fund Asset Class Percentage

iShares Barclays Aggregate Bond

iShares Barclays 1-3 Year Treasury

iShares Barclays 1-3 Year Corporate

iShares Barclays TIPS Bond

iShares Investment Grade Corporate

Vanguard Value ETF

SSGA SPDR S&P 500

iShares MSCI EAFE

Intermediate Blend

Short-Term Government

Short-Term Corporate

Inflation Protection

Intermediate Corporate

Large Cap Value

Large Cap Blend

International – Developed

30.00%

20.00%

10.00%

10.00%

5.00%

10.00%

10.00%

5.00%


Total 100%

Income Focus ETF

ETF Income Portfolio Managers

John M. Largent, CFA, CFP®, CAP®, Chief Investment Strategist
MEMBERS Trust Company, FSB
Graduate of the University of Arkansas with B.S. in Finance and Banking and MBA.
Kate Braddock, CFA, Vice President, Chief Investment Officer
MEMBERS Trust Company, FSB
Graduate of the University of Vermont with Cum Laude in Economics.
Sheldon Reynolds, CFA,Vice President, Trust & Investments
MEMBERS Trust Company, FSB
Graduate of Appalachian State, Walker College of Business with a BSBA Degree.
Jason Ritzenthaler, CFA, CTFA, Vice President, Trust & Investments
MEMBERS Trust Company, FSB
Graduate of Florida State with a B.S. in Finance and Management Information.

For more information please contact Jason Ritzenthaler, CFA, VP, Trust & Investments at 888-727-9191 ext. 705 or email Jason.Ritzenthaler@Memberstrust.com