So let’s talk money…
Managing the legacy funds of the Region is a major responsibility of the Finance and Extension Board. It may be the only thing you know about F&E – that we look after the money that has been entrusted to the United Church in our region.
F&E’s constitution includes this responsibility as item nine on the list of our duties:
… to invest and administer as a prudent administrator (but not limited to presumed
sound investment restrictions) its endowments and other funds, or funds entrusted to
it by the Regional Council or communities of faith or others
As of December 31, 2024, the value of the assets under F&E management was $22,836,096. That’s divided into two pots – restricted funds of $7,358,332 and unrestricted funds of $15,477,764.
“Restricted funds” are moneys that have been given to the church for specific legacy purposes. Often, these are funds that resulted from the closure of congregations and the sale of the properties they held in trust for the United Church of Canada. Some of these restricted funds are quite small like the Grand-Mère Fund (at just under $4,000) that was set up after the closure of our church in that town. Others are much larger – for example the Erskine & American–Mountainside Fund held just over $4 million at the end of 2024.
F&E’s 2023 year-end financial statement is available online and has a complete description of the various restricted funds under F&E management and their intended beneficiaries on pages 7-8: https://nakonhakaucc.ca/wp-content/uploads/2024/01/2023-12-31-FIN85001101.pdf
The return on the unrestricted funds pays for the support that F&E provides to the operation costs of the Region, to the mission work of the church through St Columba House, Montreal City Mission, and other community-based missions, to the bursary program and sabbatical leaves we sponsor, and to all the other tasks we do on behalf of communities of faith in our region. The unrestricted funds have built up over the years thanks to generous contributions from the Hugh Duncan Estate and others and also from the levy that is mandated on property sales, mergers, and disbanding communities of faith. F&E is a registered Canadian charity and so we must disburse a minimum amount of all our assets every year according to Canada Revenue Agency rules.
F&E assets have been managed with the professional help of the Montreal-based firm Fiera Capital for several years. Fiera was chosen in large part because they provide similar services to the United Church of Canada Foundation as well as the retirement fund for United Church ministry and support personnel. They also do a very good job, based on our experience with them.
All our assets are managed in Fiera’s “Balanced Ethical Fund A” with an asset-mix target of 45% income and 55% equities. This fund uses various “ethical screens” in its selection of investments that have been developed and are regularly reviewed in close collaboration with the United Church’s national foundation and our General Council Executive.
2024 was a very good year for the assets managed by Fiera on our behalf with a return of 12.2%. Over three years we realized 6.3% return and 8.9% over five years. 2025 is looking much less promising for returns on the equity portion of our investments, to state the obvious.
If you’d like to know more about this aspect of our work at F&E as “a prudent administrator” or to receive a copy of our 2024 Financial Statement when it becomes available, contact our Secretary, Caroline Leamon, or our Treasurer, Paul Stanfield, at feendowment@gmail.com.
Recent Comments