Management Agreement 

Definition: An agreement designed to provide a place for churches and other Baptist agencies to invest funds that are not currently in use. Comparable to a money market account.

Advantage: Assets are able to grow at a rate comparable or better than bank rates. Funds may be readily available for construction or special projects. Management fees are used to further the Lord's work.

Church/agency shall sign a "resolution", whereby the church or agency has voted to place funds with the New Mexico Baptist Foundation.

The Foundation shall provide the church/agency with a management agreement which gives the church/agency the option of investing wholly or partially in three different funds. The agreement also provides the option of either receiving net income quarterly or reinvesting income for further growth.

Funds

Church Building Money Market Fund - In March 1999, the Church Finance Corporation launched the Church Building Money Market Fund. This fund offers Baptists in the Rocky Mountain Region the opportunity to receive a safe, competitive return on investment and also participate in the financing of new churches, missions and other Christian institutional facilities. Funds invested in the Church Building Money Market Fund are conservatively managed, but still provide a competitive return for investors.

Interest income will be credited monthly to the accounts. Interest earned by the investor's account will be automatically reinvested in the Fund. Interest rates will be adjusted monthly. The rate-setting policy determines the higher rate of the national average, previous 30-day rate for money markets and the average of three large Albuquerque banks' one year CD rates. IBC MONEY FUND REPORT AVERAGE publishes averages for all 898 taxable funds and the 30-day average yield in the Business Outlook of The Albuquerque Journal each Monday.

The financial resources invested in the Fund are pooled to underwrite first mortgage loans to churches, new missions and agencies affiliated with the Baptist Convention of New Mexico.

God is working miracles of church growth, so loan demand continues to grow. Your deposits are needed to fund well-underwritten loans. Thus, your investment can have a direct impact in building the Kingdom in the Rocky Mountain region.

Most commercial money markets require a high threshold for an initial investment or to earn interest. The CBMMF requirement is low ($500) so that people of all economic levels can participate in building churches.

Equity Fund (Stocks) - The Foundation seeks to provide the best yield with the least possible risk. The Equity Fund is composed of multiple managed funds employing various investment styles. The objective is to maximize total return while preserving capital. Additions and withdrawals may be made at the beginning of the month.

Fixed Income Fund (Bonds) - The Long-Term Income Fund, while producing current income similar to 30 year Treasuries, is invested for maximum income with minimum market volatility. The average maturity is approximately six years with the longest maturity being nineteen years. Additions and withdrawals may be made at the beginning of the month.

If income is invested in equity or fixed, a 30 day written notice must be provided by the church or agency for withdrawal.