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LCMS Convention Workbook St. Louis, Missouri — 2001, Page 54

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

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