VEBA Commission
WELS VEBA is overseen by the VEBA Commission. The VEBA Commission is composed of six members: 1 Pastor, 1 Teacher, and 4 Lay Workers. Each member brings a unique perspective and background to the commission. The current VEBA Commission members are:
- Mr. Richard Hudock, Chairman
- Mr. Doug Miller, Vice-Chairman
- Mr. Jeffrey Timm, Secretary
- Rev. James Tauscher
- Teacher Chris Fischer
- Mr. Chuck Adrian
VEBA Investment Policy and Objectives
Updated May 2007
The VEBA Commission has a written statement of investment policy that is accepted by the Synodical Council of the Wisconsin Evangelical Lutheran Synod for the guidance of fiduciaries and investment management organizations employed to assist in investing the assets of the Wisconsin Evangelical Lutheran Synod Group Medical Trust ("the Trust"). Listed below are excerpts from the full statement.
Purpose of the Statement
The purpose of this Statement is fourfold:
- Set forth investment objectives, policies, and guidelines which are appropriate and prudent in consideration of the needs of the Trust.
- Establish criteria against which investment manager(s) retained by the Commission will be measured.
- Communicate investment objectives, guidelines and performance criteria to the investment manager(s).
- Guide the Commission's ongoing oversight of the investment of the Trust assets.
Role of the Commission
In adopting this Statement, the Commission recognizes its fiduciary responsibility to develop and monitor an investment strategy for the Trust solely in the interest of the Trust's beneficiaries.
To that end, the Commission will adopt investment strategies that are deemed most appropriate given the Trust's funding status, liability profile and need for short term liquidity.
The Commission is also responsible for the selection of investment managers, consultants and any other investment professionals required to execute and monitor the Trust's investment policies.
Asset Allocation Guidelines
In determining an appropriate asset allocation strategy for the Trust, the Commission, in conjunction with an investment consultant, has evaluated the Trust's funding status, liability structure and projected payment requirements.
As a result, the Commission has established asset allocation guidelines designed to achieve satisfactory investment returns while gaining the risk control benefit of diversification.
The guidelines are as follows:
| |
Minimum |
Target |
Maximum |
| Fixed Income |
|
|
|
| U.S. Investment Grade |
45% |
50% |
55% |
| Cash |
15% |
20% |
25% |
| |
|
|
|
| Total Fixed Income |
65% |
70% |
75% |
| |
|
|
|
| Equity |
|
|
|
| U.S. Equity |
25% |
30% |
35% |
| |
|
|
|
| Portfolio Total |
|
100% |
|
The target allocations should be viewed as long term strategic objectives. Fluctuations above or below the minimum/maximum parameters may require a periodic re-balancing by the Commission to stay within the long-term objectives. The Commission may seek the assistance of an independent consultant to periodically review the guidelines, which are designed to provide flexibility to the investment managers to respond to changing market conditions.
Diversification
The Commission understands their responsibility to diversify the Trust. Investing the Trust's assets in multiple asset classes and using outside investment managers with well-diversified portfolios, is done with the goal of insulating the portfolio from the effects of substantial losses in any single security, or sector of the market.
Review Process
On a periodic basis, but at least once per year, the Commission will:
- Review the actual results achieved to determine whether the investment manager(s) have performed in accordance with this Statement of Investment Policy and Objectives and the return objectives as set forth herein.
- Review the asset allocation guidelines and make any needed strategic changes. The Commission may retain an independent consultant to assist in the evaluation of the investment manager(s) performance relative to the objectives outlined in Section V.
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