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The Investment Policy for the Growth/Income Fund and the Total Return Fund of the Endowment Program is established by the Board of Stewardship. It is reviewed, evaluated, and, if necessary, adjusted at each semi-annual meeting of the Board.
The goal for the investment policy of the program's funds (Growth/Income Fund and Total Return Fund) is to provide a firm financial foundation for the Cumberland Presbyterian Church in order than its witness to the world concerning the good news of Jesus Christ may be carried to all the earth, to the end that all may come to experience God's saving power, in this life and the life to come, and to know the joy of loving God and one another. To secure this foundation, the policy provides for investment both in the witness of the Church and the work of the world.
In the Growth/Income Fund, recognizing that Cumberland Presbyterians, gathered in churches scattered across four continents, are the primary agents through which the witness to Jesus Christ takes place, the policy includes a long-standing and time-honored commitment to provide loans to aid churches in the construction of facilities for their witness of worship, nurture, and outreach. (Click A Half-Century of Support for Mission to learn more about this commitment).
Recognizing that God gives to the human family a variety of gifts, desires that each person engage in the mutual sharing of these gifts so that all may be enriched, and blesses this sharing through the daily work of the world, the policy includes a commitment to responsible and prudent investment in the economic life of the world.
In the Growth/Income Fund, up to 40% of the fund may be invested in the witness of the Church through the Church Loan Program. The remaining 60% is to be invested in the work of the world in a proportion that may be up to 65% equities with the remainder in fixed income securities.(Click Asset Summary and Liabilities & Fund Balances to learn more about the actual investment mix of the funds at year end 2005).
The objectives are to provide, through the Church Loan Program, and in the order of priority given:
1. Consistent monthly income to participating churches and church agencies;
2. Extension of the witness of the Church through providing financing for facilities for new churches which lack credit histories that would enable them to secure financing on the open market; and
3. Strengthening of the witness of established churches through providing financing for new and improved facilities.
All existing loans, except certain loans mandated by the General Assembly, are secured by a first mortgage that cannot exceed 80% of the appraised value of the property and are amortized over a term of fifteen (15) years.
As of January 1, 2001, a new chapter in the history of providing church loans was inaugurated. The Cumberland Presbyterian Church Investment Loan Program, Inc. received the $11,967,317 in assets of the Cash Funds Management Program. In addition, its Board of Directors approved an initial public offering of $10,000,000. This offering was available in the states of Tennessee, Kentucky, Texas, and New Mexico (covering 75% of the stateside membership of the Cumberland Presbyterian Church).
As of December 31, 2005, the CPC Investment Loan Program had $13,464,818 in total assets of which $4,524,325 was invested in fourteen loans to Cumberland Presbyterian churches.
Now that church loans are originated by the CPC Investment Loan Program, the investment policy of the Endowment Program in relation to church loans applies primarily to loans mandated by the General Assembly. The limitations of the policy are still applicable both for these loans and for any support which the Endowment Program may give to the new CPC Investment Loan Program--support which is carried forward by the Board of Stewardship's commitment of the Endowment Program's Growth/Income Fund to purchase loans from the CPC Investment Loan Program whenever necessary to preserve the liquidity of the CPC IP's assets.
More complete information on the Investment Loan Program is contained in its current Offering Circular, available upon request from the Board of Stewardship.
The investment objectives of the Growth/Income Fund are to provide, through the professional investment managers, and in the order of the priority given:
1. Above average realized income;
2. Generation of capital growth in excess of inflation;
3. Above average long-term total return;
4. Preservation of principal; and
5. Payment of monthly income
The investment objectives of the Total Return Fund are to provide, through the professional investment managers, and in the order of priority given:
1. Preservation of purchasing power;
2. Increasing long-term rate of return; and
3. Preservation of prinicipal
Click here for a full statement of the investment policy guiding the professional managers of the Endowment Program's Growth/Income and Total Return Funds and of the Cumberland Presbyterian Retirement Plan No. 2.
HOME FOUNDATION ENDOWMENTS For more information, contact Richard Magrill
Page updated on May 1, 2007 Pages maintained by Elinor Swindle Brown