By Jerry Love, LBF Communications
ALEXANDRIA – The election of new officers, updates on investments and the approval of the 2017 budget highlighted the final quarterly meeting of the Louisiana Baptist Foundation Board of Trustees meeting Oct. 25.
Members also learned of almost $900,000 in new donations that would benefit Louisiana Baptists’ ministries.
INVESTMENT UPDATES
Jim Prince of Lafayette and chairman of the investment committee had Lee Morris of Graystone Consulting bring an update on the management of the LBF’s funds and a general overview of market conditions.
In his remarks to the group, Morris noted the equity portion of the portfolio is in positive territory for the quarter, but still lagging its benchmarks year-to-date.
Morris said the situation was partially due to the fact that passive management (investing in index funds) had outperformed active management, and he added that he and Foundation Executive Director Wayne Taylor will move to more passive management for the LBF in the near future.
He also pointed out that a U.S. Department of Labor ruling, which becomes effective April 2017, will force pension funds to shift to more passive management, causing a passive strategy to continue to outperform an active strategy.
Other issues addressed by Morris:
— Morgan Stanley’s Global Investment Committee projects the next 5 to 7 years likely will bring lower performance.
— Securities markets do not like surprises, but even so, the 2016 presidential election outcome likely would have a short-term negative impact.
Barbara Bell, the Foundation’s accountant, reported assets under management, as of September 30, were $164,337,651.98, a slight decrease from the previous quarter.
Investment returns for the major components of the LBF portfolio were reviewed by Prince, who reported the following data for Sept. 30:
— Short Term Fund: 0.58% Annualized Yield
— Group Investment Fund, comprised of various market sectors: 4.06% total return year-to-date.
— Diversified Income Fund, conservative income-oriented fund: 3.70% total return year-to-date.
OPERATIONS REPORT
The operating committee, chaired by John Carroll of Columbia, received a report on the current budget from Bell. She said even though revenue was slightly behind expectations, expenses continued to be held in check, resulting in a positive bottom line for the year to date.
Bell also presented the 2017 operating budget, which was approved by the committee.
Jerry Love, planned giving director, reported on several new gifts received during the second quarter, including a gift of real estate received in early October that will benefit a local Baptist camp, and, several donations amounting to $869,000 added to donor advised funds that will be directed by the donors to benefit Baptist ministries they choose.
Chuck Murray, LBF controller, and Taylor gave an update on the conversion to the new Stellar iPhi accounting software. While iPhi is quite different than the current system, progress is being made to “go live” Jan. 1, 2017, according to Murray.
GENERAL SESSION
During the afternoon, Board President Julian Johnston, of Calhoun, led a review of the information presented by the Investment and Operating Committees in earlier sessions, and the board subsequently approved the recommendation from the Operating Committee to approve the 2017 budget.
Taylor reported on his recent mission trip to Belarus with the LBC Partnership Missions team and thanked the board for the opportunity to participate.
New officers elected for 2017 are Waymond Warren, pastor of Fair Park Baptist Church in West Monroe, president; Steve Crosby, member of Summer Grove in Shreveport, vice president; and, Polly Brinker, member of the Gathering Place in Pineville, secretary.
The Louisiana Baptist Foundation was established in 1944 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 Foundation, to review investment returns for its managed funds, or to see a list of current trustees, go to www.LBFinfo.org.
The next LBF trustee meeting is scheduled for Feb. 7, 2017.
