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Introduction

The mission of The Baptist Foundation of Alabama is to strengthen mission and ministry efforts of Alabama Baptists. The purpose of The Baptist Foundation of Alabama is to develop, manage, and distribute financial resources for the benefit of Alabama Baptist’s mission and ministry efforts within Alabama, other states, and around the world.

The priorities of The Baptist Foundation of Alabama are to promote Christian stewardship, assist with the planning and implementation of charitable gift arrangements and manage assets entrusted to The Foundation to provide perpetual support for the mission and ministry efforts of Alabama Baptists. The Foundation encourages faithful stewardship by:

•  Managing funds entrusted to it in an effective and socially responsible manner,
•  Educating people in an appropriate Christian estate stewardship and financial management techniques,
•  Providing trustee services to facilitate good financial management,
•  Encouraging individuals to be good Christian stewards,
•  Educating individuals about tax effective means of contributing to Baptist causes while maintaining an income stream for

themselves or their family or friends,

•  Striving for excellence and continuous improvement in its operations, and
•  Operating with the highest Christian moral and ethical standards, as exemplified by its membership in the Evangelical

Council for Financial Accountability.

In the fulfillment of this mission The Foundation seeks to serve Alabama Baptists by offering investment opportunities that are socially screened and diversified in ways that an investor may not otherwise be able to achieve. The Foundation also seeks to build endowments for future Baptist ministries at local, state, national, and worldwide levels through development and planned giving services.

Investment Management Programs and Processes

The Baptist Foundation of Alabama is currently responsible for managing in excess of $230 million dollars. To effectively manage this size fund, The Foundation has employed an outside investment management consultant who helps the Investment Committee of the Board of Directors implement an academically sound investment management program. The Foundation uses a multi-asset class, multi-manager approach to investing. To accommodate the varying needs of those who have invested with The Baptist Foundation of Alabama, The Foundation has established a number of Common Investment Funds that offer a menu of choices to enable investors to meet their own investment objectives. Each of the Common Investment Funds managed by The Foundation has it own primary objective, as follows:

• TBFA Income Fund: the Ultra Short strategy will maintain an average duration of up to one year. Investments can include government and corporate debt securities, mortgage and other asset-backed securities, money market instruments and derivatives. The Fund can invest up to 10% in issues rated below BBB, but no lower than BB.
   
• TBFA Bond Fund: high current income and preservation of nominal principal, but with limited protection against inflation. The market value will fluctuate with changes in interest rates. This fund is managed by Metropolitan West of California and Tattersol of Virginia.
   
• TBFA Stock Fund: growth at a reasonable risk. This fund utilizes a multi-manager multi-asset style of investing. For more detail see Exhibit A.
   
• TBFA Balanced Fixed Emphasis Fund: current income with some opportunity for growth. The target asset mix for this fund is 70% TBFA Bond Fund and 30% TBFA Stock Fund.
   
• TBFA Balanced Fund: long-term preservation of purchasing power plus reasonable current income. To meet its objectives this fund invests in the TBFA Stock Fund, TBFA Bond Fund and certain alternative investments.

The Board of Directors of The Baptist Foundation of Alabama determines the investment policies of the common funds and implements those policies with the counsel of an investment management consultant and a network of investment managers. Those policies are reviewed at least annually and are revised as determined by the Board. Investment managers are retained to invest the funds assets in a manner consistent with the investment policies and guidelines determined by the Board of Directors.

In setting the policies and objectives of the funds, The Foundation recognizes the important role of investments in current and future operations of Baptist institutions. The investment policies that have been formulated for the funds are designed to achieve investment returns within prudent levels of risk. The strategies used to meet the objectives of the funds include investment and financial securities and require time horizons sufficient to withstand a normal volatility of the financial markets.

The Foundation is committed to the management of its assets in a manner that is consistent with Christian, moral and ethical principle of Alabama Baptists. It is The Foundation’s policy to direct investments away from certain companies and particular businesses if the principal business activities of those companies are inconsistent with this philosophy. In so directing the investments, The Foundation will act with ordinary business care and prudence. Any assets received by The Foundation that do not conform to this philosophy will be disposed of as soon as practical.

Conclusion

The Director’s Finance Committee and staff of the Foundation have worked diligently to establish an academically sound institutional investment management program designed to benefit all Alabama Baptists. If you have any questions about our investment management program or process, please contact the Foundation office at 334-394-2001 or email tbfa@tbfa.org.

> download Disclosure Information for Plan Participants PDF

Exhibit A

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