JEFFERSON CITY (MBF) – Missouri Baptist Foundation (MBF) trustees met here , Aug. 12. Although total assets under management by the MBF dropped to just below the $200-million mark, Foundation President Neil Franks told trustees that, in light of current market conditions, “The Lord has been kind to MBF.”
Franks welcomed the trustees and highlighted the investment performance, “The first half of 2022 saw the worst returns in the S&P market in 50 years, losing 21% overall. Traditional endowment portfolio mixes lost around 17%. However, the Kingdom Fund only lost 2.9% over that same period. Not losing money is just as important as earning money when you manage endowments.”
Ross Roggensack, the founder of MBF’s Investment Consultant, Oak City, shared details on how MBF’s pivot on portfolio construction several years ago has begun to pay off. “Oak City leads by removing investments in markets which suppress freedom, such as China and Russia,” he said. “Instead, focusing on God-honoring and human flourishing investments, such as farmland, and natural resources from sustainable methods, supporting the underbanked, and direct Gospel Advancing efforts when possible. MBF is reaping the Lord’s favor.”
Franks added, “Investing in what the Lord cares about and in ways that are pleasing and honoring to Him is the appropriate strategy even when they may not pay off financially, but it is especially sweet when they do.”
In August, Franks met with several of the MBF’s managers, and in September, several trustees and officers will visit one of those God-honoring investments, Delta farmland.
In addition to hearing investment reports, trustees took action to raise the annual dividend on both investment pools to 91-cents-per-share in the Harvest fund and 85-cents-per-share in the Kingdom Fund, the third year in which both dividends have been raised. MBF also took action this year to lower fees on endowment management.
The trustees also approved raising the budget for the Fiscal Year 2022-2023 to a record $1.6 million, up from last year’s $1.5 million, to keep up with inflationary costs.
Shelly Vaughn, Chief Operating Officer, said, “We are so thankful for the hard work of our investors, managers, and staff in making this possible. We anticipate the fifth year of increased revenue for the Foundation and our fifth year, where revenues far exceed expenses. We continue to lower costs to our clients while growing our organization to help our partners advance the gospel.”
MBF also created a new partnership that lowered insurance costs, outlined and implemented a new antiharassment/sexual abuse policy and reporting process via a process managed by a third party, and continued receiving positive reports from Encounter Ministry during their first summer as operator of Encounter Cove.
The board also celebrated Franks’ fifth anniversary as MBF president.
Board Chair Jennifer Ross said, “Dr. Franks continues to provide solid leadership and management of Missouri Baptist Foundation. His belief in the mission is evident! Assets under management continue to climb under Dr. Franks’ leadership, directly achieving the mission to Advance the Gospel through Kingdom dollars.”
MBF staff are continuing to prepare for the October annual meeting in St. Charles. The next full MBF board meeting will occur on Dec. 9, with quarterly virtual investment meetings.