Partnering with ELFEC FAQs

We offer two types of fund: managed funds and endowment funds.  Under the written agreement for a managed fund, the type chosen by most churches, the congregation remains the owner of the assets.

ELFEC funds are invested in securities whose value fluctuates with market and economic conditions.  We do not offer any guarantees on the rate of return.

If ELFEC’s investments experience a year with negative returns, no income will be paid out and we will adjust the opening value of each fund accordingly for the beginning of the next fiscal year.  As long as the money stays invested, this is a “paper loss”.  Our experience has been that markets often rebound after experiencing a year of negative investment returns.

The value of ELFEC’s investments is subject to fluctuations that are outside of our control.  There is no insurance plan that guarantees the value of principal in an investment partner’s fund.  However, the securities that make up ELFEC’s investment portfolio are actually held by our custodian, RBC Investor Services. 

ELFEC has contracted out management of our investments to Fiera Capital.  They make their decisions within the parameters set out by our Investment Policy Statement.  The ELFEC board of directors, investment committee and staff monitor investment performance regularly and meet with Fiera Capital quarterly to review results.

We pay investment income to our fund partners in February of each year, based on the prior year’s experience.

With a managed fund, you can get all or part of your principal back at any time, with a reasonable period of notice.  In the first five years of the fund’s existence we charge an administrative fee for return of principal.  This is a flat amount that declines each year and disappears completely after the fifth year.