The LCMS Foundation and Concordia Plan Services (CPS) began a joint partnership in April with investment consultant Wilshire Associates that is expected to bring about savings in custodian and investment manager fees and “lead to better outcomes for CPS and Foundation stakeholders,” according to a June 22 news release from the two Synod groups.
The boards and investment committees for CPS and the Foundation “fully supported” establishing the partnership, said Tom Ries, president of the LCMS Foundation.
“This is not about combining or pooling our funds,” explained CPS President Jim Sanft, “[but] about working together in order to find strength and efficiency for similarly needed services.”
In the new collaborative effort, custodians and investment managers that are used by both CPS and the Foundation will consider the total of both organizations’ assets in calculating fees.
Wilshire will advise Concordia Plans on the investment strategy for its four trust funds — Concordia Health Plan, Concordia Retirement Plan, Concordia Retirement Savings Plan and the Concordia Disability and Survivor Plan — and will work with the Foundation to oversee strategies “appropriate for [its] wide array of investment opportunities,” the news release states.
“By looking at the assets on a combined basis,” Sanft said, “the result should be substantial savings in management and service costs associated with investment oversight.”
He added that CPS has collaborated with other organizations and participated in buying groups “to achieve efficiency and cost savings before, particularly in regard to the benefit administration of the Concordia Health Plan. However, collaborating with a fellow LCMS organization also means we’re working together for the benefit of our church.”
“The LCMS Foundation and Concordia Plans have each been blessed with many years of success,” said Ries. “We are certain this partnership is the next step toward an even more efficient and effective future for both ministries.”
Posted July 1, 2010