2016 Year in Review

In spite of all the political and economic turmoil experienced in 2016, UMFA managed to have a very positive year. I hope you'll take a few minutes to review the information that follows.

2016 Investment Performance Review

We completed our fifth year of partnership with Wespath Investment Management, a United Methodist agency that is also responsible for managing the UMC's $22 billion in pension assets. This has been a great relationship. Their performance and service are top notch, and their efforts in the area of socially-responsible investments cannot be matched.

UMFA hosted an Investment Summit in February, 2016 that featured presentations from Wespath professionals. It was well received by UMFA client churches across the state, and our plan is to host another similar gathering in February, 2018.

As the performance numbers below indicate, all three of our investment pools had good years and outperformed their benchmarks.

Investment Pool
Pool Size
(millions)
1 Year Return 1 Year
Benchmark
Return
Average 5
Year Return
5 Year
Benchmark
Return
 Blended Investment Pool  110.82  7.72% 6.50%  7.36%  6.90%
 Growth Investment Pool  9.10 9.42% 5.70%  10.98%  9.08%
 Income Investment Pool  9.93 5.63% 3.38%  2.50%  1.44%
 

We ended this year in excess of $141 million, a 6.4% annual increase.

Asset Composition

Our asset composition continues to compare favorably with our sister foundations across the country:

  • Trustee Accounts (44%): Permanent endowments owned by UMFA. The annual income is used as directed by the donor.
  • Life Income Accounts (10%): Special funds that provide lifetime income to the donor, and then are used to support UM ministries as directed by the donor.
  • Revocable Trusts (2%): Owned by individuals who have named UMFA as their trustee. A substantial portion of these trusts will someday be gifted to UMFA.
  • Agency Accounts (42%): Funds owned by United Methodist institutions and local churches and placed at UMFA for investment management.
  • Other (2%)

Grant Activity

UMFA continued to make a dramatic impact on the United Methodist Church in Arkansas. Our grants to support ministry exceeded $5.6 million. Of this total, almost $1 million in grants were made at the discretion of the Foundation's board to high priority areas. Those discretionary grants are catagorized as follows:

Conclusion

Thank you for all you do for the United Methodist Church and your support of our special ministry at UMFA. The Foundation staff feels blessed by our opportunity to work in strengthening the United Methodist Church in Arkansas. Our work brings great fulfillment, and we are blessed by the opportunity to serve and befriend so many wonderful United Methodists across the state.

Hundreds of Arkansas United Methodist have entrusted their charitable legacy to the Foundation to be used for UMC ministries in Arkansas. We work hard to make certain we are being a good steward of all that has been entrusted to us. If you haven't made your plans to express your love and appreciation for the Church in some lasting way, we would love to visit with you about your options. We're just a phone call away.







James B. Argue, Jr.
President and CEO