Insurance – July 2015
My article this month is an excerpt from Father’s for Good. I present this article to you for your edification. We can be proud of being members of the largest Catholic fraternity in the world. We can be even more proud of our ethical leadership in the market place.
An excerpt from:
Money and Morality
Knights of Columbus investment chief talks about handling money according to Catholic principles
Fathers for Good: In its life insurance and annuities, the Knights of Columbus avoided the worst effects of the recent economic meltdown. What did you do right?
Minopoli: One of the things that has long been a hallmark of the Knights of Columbus is our conservative investment strategy, and we make sure that we maintain that philosophy in good times and bad. We want to generate the highest rate of return that we can, but we want to do it while maintaining the greatest level of risk control in the portfolio. So there are places where we will take risk in the portfolio, but we do it after careful and thoughtful analysis. But the vast majority of our investments, nearly 90 percent, is allocated to very high-quality bonds. We really focus on the basics, and work hard to understand the company we are investing in, to understand what they do, and their revenue model. In addition, we live by the basic tenet that there’s no transaction that we have to make. There’s always another day, there’s always another opportunity. If something’s overly complex, if something doesn’t quite add up, we don’t get involved, even if everyone else is buying into it. As Supreme Knight Carl Anderson has said many times, we didn’t get involved in the subprime market not because we didn’t understand it, but because we did understand it and saw the risks.
We are a Catholic organization, and managing money ethically is a central part of who we are and what we are trying to accomplish in the long term.
The Knights of Columbus is Your Shield of Protection for Life.
Fraternally Yours In Christ,
Robert L. Schmutzer, PFN
Knights of Columbus