The Foundation offers the following option for United Church organizations and communities of faith.
We welcome gifts from United Church organizations that we can lodge within the Foundation in a balanced portfolio (has stocks, fixed income investments, and a small cash component). The gifts then become the assets of the Foundation and we use a detailed agreement (put together cooperatively) to say how and when and to whom grants are made from the fund. The Foundation’s Board and its investment committee oversees the funds and the agreement would dictate grants. You could add to it at any time but would not be able to draw down the balance of the account to an amount below the original capital. The benefits here are low volunteer time and expertise are needed on your side of things. This works best when some of the capital will be held for ten or more years. Examples would include Manse Funds, endowed funds etc. The fee for this service is 1.5% per year. Reporting is typically done on an annual basis. The 2018 return was -0.68 %, the 5 year rate was 8.34 %, and the 10 year rate was 6.34% (gross of fees).
The Foundation’s assets are managed by Fiera Capital. They use an integrated Environmental, Social and Governance approach to their investing which means that while the funds are not ethical funds, Fiera is careful to choose best in sector companies with regards to environmental impact, social responsibility (for employees and the communities the company works in) and of course companies with good governance practices. The Foundation’s investments have always been at least 96% compliant with the Foundation and United Church’s Socially Responsible Investment Policies. In fact in 2018 they were at least 98% compliant. The rating varies as the holdings in the fund vary.
For church organizations that want to maintain ownership of their invested assets, the Foundation has a relationship with Canoe Financial. Canoe is a Canadian mutual fund company and they have set up a special arm of their business called Frontier Funds to manage accounts related to United Church organizations. As of June 20, 2019, there were 180 accounts held by 132 communities of faith and United Church organizations. 95% of these accounts are invested in the Canoe Asset Allocation Class Portfolio (series D). Canoe has committed to offering United Church organizations excellent service as well as a reduced management fee.
Please contact us for more information about either option.