By Jerry Love, LBC Communications
ALEXANDRIA – The Louisiana Baptist Foundation Board of Trustees met for its regular quarterly Trustees meeting on Oct. 28.
During the morning Investment Committee meeting, the various portfolios of the Foundation were reviewed in respect to performance and potential adjustments to asset allocation.
Barbara Bell led a review of the financial assets under management.
As of Sept. 30, the total assets managed by the LBF are $160,892,180.07 held in 2077 accounts on behalf of Baptist churches and ministries.
A suggestion from fixed income manager Weaver Barksdale to allocate more of the portfolio to high yield bonds initiated the meeting’s discussions. This suggestion was taken under consideration but no action was taken at this time.
In reviewing other aspects of the portfolio it was noted that the equity portfolio, although generating a positive return, was trailing its benchmark for the year. Equities make up a large portion of the overall investment mix. Part of the reason for the lag in equities was due to the dividend orientation of the stocks held, providing dividend income but less overall growth.
By comparison the “non-traditional” segments of the portfolio (a mix of small percentages invested in master limited partnerships, preferred stocks, convertible securities, and other alternatives to traditional stocks and bonds) continued to add value and helped generate a positive return for the Group Investment Fund that also exceeded its benchmark.
The returns for the major aspects of the LBF portfolio are as follows:
Short Term Fund:
0.43% Annualized Yield
Fixed Income Fund:
2.94% Total Return YTD
3.48% Total Return YTD
Group Investment Fund:
4.77% Total Return YTD
The Operating Committee addressed several administrative issues in its morning session.
The Committee reviewed and accepted a proposal from the Personnel Committee for a new formalized review procedure for the Executive Director’s position. In the previous meeting the Board approved an updated job description and personnel procedures related to the Executive Director.
Also Bell, CPA and Controller for the LBF, reviewed the current budget as of the end of September.
Despite a slight drop in Cooperative Program revenue, an increase in income due to additions to the assets under management, along with prudent spending, has helped keep the Foundation’s budget well in the black for the year. The new Operating Budget for 2015 was also presented and approved by the Operating Committee.
Executive Director Wayne Taylor updated the committee on the progress of implementing new accounting software. The existing software was a custom product designed approximately 15 years ago and no longer has technical support available. The staff is in the process of converting to new software called Trust Processor.
The entire Board of Trustees met following lunch. Trustees heard the report from the Investment Committee, then reviewed and affirmed the motion from the Operating Committee regarding the 2015 Operating Budget.
The board also selected new officers for the coming year, re-electing the current slate of officers for another term. Mark Evans will continue to serve as President, Julian Johnston as Vice President and E. L. Paulk as Secretary.
The Louisiana Baptist Foundation is celebrating its 70th year of serving Louisiana Baptists. The Foundation exists to encourage and assist individuals with gifts in support of Louisiana Baptist churches and ministries, as well as provide asset management for the churches and institutions affiliated with the LBC.
To learn more about the work and ministry of the Louisiana Baptist Foundation, to see a list of current Trustees or to review investment returns for the LBF managed funds, go to www.LBFinfo.org.
The next scheduled meeting for the Trustees is Feb. 3, 2015.