The Foundation offers two options for investing long term funds.
The first is for the funds to be lodged within the Foundation in a balanced fund (has stocks, bonds and a small cash component). They then become the assets of the Foundation and we use a detailed agreement (put together cooperatively) to say how and when and who grants are made from the fund. In this case, the Foundation’s Board and its investment committee would oversee 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 2017 return was 10.32 %, the 5 year rate was 10.13 % (gross of fees).
The second is for the funds to be placed alongside the Foundation’s with the Foundation’s fund manager, Fiera Capital. In this case, the organization would have a direct relationship with Fiera Capital. You can add funds and withdraw any or all funds at any time (after a short waiting period which tends to be 60-90 days) and you have the option to choose what sort of fund you want the assets placed in: bond fund, high income fund, capital and income growth fund (by far the most popular with congregations). This is best for contingency funds, maintenance funds, loan funds, etc. The organization would need to have volunteers to oversee the investment. You would receive quarterly reports and have access to custom reports and information about the account on-line. The fee for this service varies depending on the fund you choose. The capital and income growth fund is about 1.3% after a rebate (which comes in the form of additional units at year end). The capital and income growth fund’s 2017 return was 8.06%, the 5 year was 8.59% and the 10 year was 4.97% (net of fees as they are included in the unit price). To learn more about Fiera and their funds please download their information package.
In both cases the fund manager is 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 balanced funds have always been at least 96% compliant with the Foundation and United Church’s Socially Responsible Investment Policies. In fact in 2016 they were at least 98% compliant. The rating varies as the holdings in the fund vary.