The Waterbury Democrat., 1944-06-26

New York, N. Y. June 26-with an annual pension roll of over 9l,- 100000, The Church Pension Fund of the Protestant Episcopal Church reports assets of s37,620,423. as of December 3l, 1o4S, according to its 'Twenty-sixth Annual Report just issued. This represents an increase of $i,SSe,i26 in the assets of the Fund during the past year.
 Tn his report as President, Bishop Cameron J. Davis states that the year-end market value of the Funds investments exceeded their book value by approximately 2200,- 900. He calls attention to the fact that United States Government Se- curities owned by the Fund repre-. sent approximately 31 percent of the total investment portfolio and that the Funds participation in the First Second and Third War Loans amounted to $3,545,000.
 The Fund is maintained by the Protestant Episcopal Church for the purpose of providing pensions for the retired clergymen and for the widows and orphans of deceased clergymen. It was founded in 1917, and has paid out total of approx irnately $23,600, 900. in pension ben- efits since then.
 The Report emphasizes the fact that as the assets have grown, so have the liabilities, which amount cd to $34,649, ,409 at the end of 1943. The Fund Is administered on an &C., tuarial reserve basis under the su- pervision of the Insurance Depart ment of the State of New York. In- cluded amongst the liabilities are the reserves which are necessary in order to carry certain additional benefits now amounting to more than $300,000. year which are be- ing paid to beneficiaries in excess of the original promises.
 The present Treasurer of the Fund, succeeding the late J. P. Mor- gan, is Charles D. Dickey, vice. president of J. P. Morgan and Go. Incorporated, who includes in his report a detailed list of the invest. ments, showing market value of .$37,3l8,o67. compared to book value of $35,l22,289. The average yield on it's investments is now about BPS percent, which is reported to be c slight increase over the average In the previous year. Re- marking upon the interest situation, Bishop Davis states that the in- vestment policy of the Fund is based upon the principle that safe ty of principal is far more import ant than a higher current incomS at the risk of capitol loss" He calls attention to the fact that there is no investment of the Fund upon which income was not received dur ing the year l943.
 Tn his report as Executive Vice. President, Bradford B. Locke. an- alyzes the increase of s464, ,694 in the surplus of the fund during the year i043. He points out that most of this increase is due to profits on sales of securities during the year lo43, plus increased market values, although the trustees of the fund increased substantially Spec iai Contingency Reserve at the end of i043 to offset, to some degree. iHl- creased security values. Another important gain to surplus results from the fact that the actuarial calculations are based upon the assumption that all of the living clergy will retire promptly at age 6e, whereas in actual experience many of them continue in the ac. tive ministry beyond that age. The pensions of the fund are payable only upon retiremen from the active ministry. The report warns, how ever, that If interest rates do not improve in the future, the Trustees may be unable to continue the present program Of expanded bene- fits and 1t may also become neces-