Trust adopts investment guidelines related to pornography, gambling.

For many years Brethren Benefit Trust (BBT) has taken a corporate stand against four industry sectors that promote products that are contrary to Church of the Brethren statements and resolutions: defense, alcohol, tobacco, and gambling. Now BBT is taking a stand against pornography.

At its fall meetings, held Nov. 16-18 in Bridgewater, Va., the BBT Board of Trustees voted to strengthen the agency’s socially responsible investing (SRI) strategy by adopting a fifth social screen for its investments. This means BBT will refrain from investing in firms that generate 10 percent or more of their revenues from the production or distribution of pornography.

"The Church of the Brethren has two statements that relate to pornography, with the most recent being approved by the 1985 Annual Conference," said Nevin Dulabaum, BBT’s director of communications and interim SRI director. "Since that time, the pornography industry has grown dramatically through the development of the World Wide Web, satellite and cable television, and pay-per-view movies at hotels. With the widespread accessibility of pornography, the time was right for BBT to make a statement against this industry."

According to Forbes, the porn industry in 2001 is a $2.6 to $3.7 billion business in the US. The number of pornographic web pages jumped from 14 million in 1998 to 260 million in 2003. There are more than 100,000 "adult-oriented" subscription sites in the US and about 400,000 globally. The US sites are maintained by about 1,000 major firms, with perhaps another 9,000 operating as affiliates of other established online "adult" firms. Total "adult-oriented" sites (subscription and non-subscription) number 4.2 million and comprise about 12 percent of the Internet’s total. On a global basis, approximately 70 million people per week view at least one "adult" site (20 million view sites that appear to be hosted in the US or Canada).

The BBT board decided the time also was right to expand its screen on gambling. For years BBT has screened out companies that generate 10 percent or more of their income from the operation of gambling machines. With the board’s approval in November, BBT now also screens out firms that meet that 10 percent threshold benchmark by manufacturing these devices.

As the manager of $400 million in assets from more than 4,000 Brethren Pension Plan members and 200 Brethren Foundation clients, BBT has an effect on the corporate world through its investments in stocks and bonds. BBT’s SRI strategy has three components. The first is screening. BBT screens out the top 25 US defense contractors and firms that generate 10 percent or more of their revenues from defense, gambling, tobacco, alcohol, and now pornography. The second component calls for BBT to proactively challenge firms in which BBT owns stocks or bonds to improve their business practices, which usually are related to human rights or environmental issues. This action is done through a range of activities, from writing letters and engaging in dialogue with companies, to presenting resolutions to company shareholders. BBT’s third SRI component is its Community Development Investment Fund, an investment choice that helps spur economic development in low-income areas.

"I appreciate the committee looking at this issue and including these items pertaining to pornography and gambling," said Dave Gerber, BBT board member.

Board member Eric Kabler agreed, "This action gives the Church of the Brethren an opportunity to take a stand."

In other business, the BBT board began to assess a change to the Brethren Pension Plan annuity rates (see story below); ratified BBT’s proposed 2007 expense budget of $3,334,725 and a capital budget of $66,550; transferred custodial services of $400 million in assets that BBT manages to Union Bank of California, after LaSalle Bank ceased providing these services for pension plans mid-year; adopted resolutions allowing retired ministers or ministers who receive a disability benefit and who own or rent their own homes to designate 100 percent of their retirement annuity as housing allowance beginning in 2007; awarded payments totaling $123,567 for the Supplemental Income for Equitable Annuitant program (members are former lay employees of the General Board who were enrolled in an equitable retirement plan prior to their inclusion in the Brethren Pension Plan); and approved two new fund options for Brethren Foundation clients.

The board also received a report from the Church of the Brethren Credit Union, which by mid-2007 is expected to offer a number of new services possibly including online banking, checking accounts, debit cards, and home equity loans. In an effort to expedite the implementation of new services, the board voted to provide funds the credit union will use to engage an independent consultant to assist in writing internal control policies and to market its new products.

Fifteen guests representing seven congregations and Bridgewater College joined the board at a luncheon sponsored by the Brethren Foundation, held at Bridgewater Church of the Brethren. Steve Mason, the new director of the foundation, gave background information about the foundation highlighting its milestone of crossing the $125 million mark of asset management.

In November, Karen Crim Dillon Orpurt Crim joined the board for her first meeting, replacing Mason who resigned in October to join the BBT staff. The board approved Janice Bratton to serve another four-year term as a board member. The board is in the process of calling a person to fill a one-year term in 2007-08. The names for both positions will be submitted to Annual Conference for affirmation. Donna Forbes Steiner was approved as chair of the Nominating Committee; Gail Habecker was re-elected chair of the Investment Committee; Bratton was re-elected as secretary.

Source: 12/20/2006 Newsline