# LCMS Convention Workbook_St. Louis Missouri_2001_S55 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 54 SYNODICAL REPORTS During the fiscal year ended June 30, 1999, LCEF reported in- vestment losses of $24 million, representing LCEF’s share of in- vestment losses incurred by its investment manager, The Lutheran Church—Missouri Synod Foundation (Foundation). LCEF ab- sorbed these losses in the net assets of the organization. Investors did not lose any invested funds nor were any interest rates on loans to ministries or investor funds adjusted due to the loss. Subsequent actions taken by LCEF in coordination with the Foundation include adopting specific investment guidelines to address LCEF’s re- quirements for safety, liquidity, and return, engaging a consultant bank with extensive experience in asset liability management, and repositioning its investment portfolio to better match LCEF’s asset and liability management requirements. Status of LCEF—DECEMBER 31, 2000 Financial Summary $1 billion 197 million; $954.4M three years ago $334.0 million; $265.1M three years ago (required for liquid- ity and capital purposes) $836.8 million; $649.7M three years ago Loan portfolio consists of loans to Total assets Cash and investments Loans receivable Congregations $601,546 71.9% Synod and Synod related $61,603 TAG Concordia University System $89,707 10.7% RSOs $72,487 8.7% Other $11,430 13% Total $836,773 100.0% Total Joan commitments $149.0 million (loans pending final action); $117.8M three years ago Notes and support dollars payable $1 billion 64 million; $816.1M three years ago $122.5 million; $135.2 three years ago 2,739 loans; 2,529. three years ago, supported by 126,585 in- vestor accounts; 113,254 three years ago Net assets LCEF currently services LCEF Staff National office 113.7 FTEs compared to 65.8 three years ago 55.0 FTEs compared to 43.1 three years ago Districts Future Plans—Top Priorities 1. Continue to meet Joan demand by recruiting and retaining in- vestors whose passion lies with supporting the work of the church. 2. Provide service to customers in all four areas—demographics, capital fundraising, competitive investor products, competitive rates on al] loans—with highest quality service in all areas. 3. Provide subsidized loan rates for highest priorities, urban, eth- nic, and international ministry. 4. Improve areas of service to professional church workers on loans, investment products and services, and continuing educa- tion. 5. Develop new products and services to better serve LCMS mem- bers. 6. Pursue additional opportunities to enhance service in all cus- tomer areas through the use of the Internet and e-commerce. 2001 Convention Workbook Articles of Incorporation and Bylaw Changes The Handbook calls for LCEF to report any amendments to the Articles of Incorporation and Bylaws to the synodical convention. During the past triennium, the following changes were made, all of which were in response to convention-directed changes to the Handbook. At its 1998 convention, The Lutheran Church—Missouri Synod adopted resolutions amending Bylaw 3.493 and Bylaw 3.197 of The Lutheran Church—Missouri Synod. Therefore Articles Fourth, Fifth, and Ninth of the Articles of Incorporation of the Lutheran Church Extension Fund—Missouri Synod (LCEF) were amended to reflect these changes by the members at LCEF’s annual meet- ings in November 1998 and 1999 as follows: ARTICLE FOURTH: This Corporation is formed for religious, educational and charitable purposes, namely, to provide finan- cial resources and related services for ministry, witness, and outreach of The Lutheran Church—Missouri Synod (the “Synod”’). In so doing it shall raise funds primarily through the issuance of corporate notes and other debt instruments. The assets of the Corporation shall be used exclusively for the following: owt finenoing the eeqeisition of sites and the a. To provide financing and services for the acquisition of sites; the construction of facilities; the purchase of build- ings and equipment; operating expenses; professional church worker education; the residential housing needs of professional church workers; and other purposes ap- proved by the Board of Directors of the Corporation consistent with the ministry and mission of the Synod under policies approved by the Board of Directors of the Synod. b.To provide financing for the operations of the Corpora- tion and for distribution of operating results to its mem- ber Districts, congregations, and corporate Synod, as de- termined by the Board of Directors of the Corporation. ARTICLE FIFTH: The affairs of the Corporation shall be man- aged by or under the direction of a Board of Directors-eenststine pF clever (11) Directors. Directors shall be elested py the Mere - The number, qualifications, terms of office, and manner of election of the directors serving on the Board of Directors shall be as prescribed in the Bylaws of the Corpo- ration. ARTICLE NINTH: The following sentence was added to the end of Article Ninth: Further, any amendment to Article Sixth (distribution of net as- sets in the event of dissolution) of these Articles of Incorporation shall also require a majority vote of The Lutheran Church—Mis- souri Synod assembled in convention. At its 1998 convention, The Lutheran Church—Missouri Synod adopted resolutions amending Bylaws 3.490 and 3.161 of The