Knights of Columbus

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Knights of Columbus
Investment Review June 30, 2008
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WHAT WE DO

• The Investment Department focuses
• on the purchase of
• Investment grade corporates, across all market
  sectors
• Investment grade mortgage securities issued by
  agencies and mortgage companies
• In addition, we focus on asset allocation and
  assist in the development of new products

WHAT WE DONT DO

• Invest in junk bonds
• Invest in derivatives
• Invest in highly speculative or highly structured
  Wall Street driven transactions

Our focus is on investing in high quality
securities
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Our Commitment to You
We do not invest in high risk vehicles such as
derivatives and junk bonds, nor do we invest in
the types of structured transactions that are
currently causing such turmoil in the markets. We
stay away from them not because we don't
understand them - but because we do understand
them - and the risk they entail.
Carl Anderson, Supreme Knight
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All investment managers for the Order are
prohibited from investing in companies engaged in
any of the following activities Embryonic Stem
Cell Research Human Cloning Pornography Abortifaci
ent Contraception For Profit Health Care
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GROWTH OF ASSETS

• Life Other
• Annuities

(Dollars in millions)
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INVESTMENT STRUCTURE OF ASSETSJUNE 30, 2008
Total Assets 14,169,100,000
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FIXED INCOME SECURITIES
12.3 Billion
86.6
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COMMON STOCKS
297.8 MILLION
2.1
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REAL ESTATE
261.0 Million
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• Agenda
• ChurchLoan Program
• Real Estate Funds

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(No Transcript)
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SUMMARY
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GROSS INVESTMENT INCOME
INCLUDES INTEREST MAINTENANCE RESERVE (IMR)
(Dollars in Millions)
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TOTAL CAPITAL AND SURPLUS
(Dollars in millions)
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KNIGHTS OF COLUMBUSACHIEVES HIGHEST RATINGS

• A.M. Best A (Superior)
• excellent persistency of the in-force book
  of business, excellent
• liquidity, very good investment
  management expertise
• The Orders level of risk adjusted
  capitalization is superior

• Standard Poors AAA (Extremely
  Strong)
• K of C has a very strong competitive position,
  based upon its distinct competitive advantage in
  the Catholic market. This advantage is
  demonstrated by the strength of the fraternal
  benefit societys career agency force and unique
  affinity it has with policy holders.
• K of Cs extremely strong capital and
  conservative investment
• strategy are expected to support new
  growth

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Knights of Columbus
One of only 5 Life Insurers in North America to
have IMSA Certification and highest Ratings from
both AM Best Standard and Poors
Others life insurers are

• Manufacturers Life (John Hancock)
• Massachusetts Mutual
• Northwestern Mutual
• USAA Life

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The Benefits of a Knights of Columbus Retirement
Annuity
Fees No up front sales charge or annual
fee Access 1) Annual free withdrawals (10 of
account balance per year) 2) Medical
Withdrawal Option (FPA Contract) 3) Guaranteed
income for life (with annuitization) 4) At
death ? avoids costs and delays of
probate ? privacy protected, no public
record ? reduces challenge
potential Rate 1) Competitive with CDs 2)
Tax-deferred, so compounds at higher rate while
reinvesting (grows at full
pre-tax rate) 3) Minimum interest rate
guarantee, credited daily (worth
more every single day) Safety Principal
Interest 100 guaranteed by the Knights of
Columbus (will never go down in accumulation
value) ? Financial strength of the
Knights of Columbus (rated
A by AM Best, AAA by Standard Poors)
? Member of the Insurance Marketplace Standards
Association (IMSA), reserved
only for those insurance companies that
conduct their business by the highest
ethical standards
- reducing surrender charges may apply
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Key Questions

• What is your planned retirement date?
• What part of your retirement funds should be in
  more conservative types of investments?
• Do you currently have any monies that should be
  rolled over?
• Do you qualify for a ROTH IRA with income tax
  free growth?
• Is tax deferral important to you?
• When does your next CD mature?