CCMBC Investments, One Year Later
As you know, on August 30, 2019, CCMBC completed a reorganization of our long-standing deposit program and your accounts now operate under our new company, CCMBC Investments Ltd. We are pleased to say that the transition to CCMBC Investments was a success, and over this past year CCMBC Investments has been operating efficiently and effectively.
COVID-19 and CCMBC Investments
Since March, we have been pleased with the performance of our investments. On the mortgage side, we have found many churches have been able to maintain their giving income. It is important for you to note that even if we have offered a loan payment deferral, deferral is not the same as forgiveness. Interest is still accruing on these loans and offering payment deferrals will not affect your rate of return. In addition, our mortgage loans are secured on title against the physical asset.
Excess funds that are not immediately required for mortgage loans are invested according to our guidelines and as governed by our staff and board. These funds are invested with a focus on capital preservation and have performed in line with how we would expect them to in a time of economic downturn.
Our account holders have seen a steady rate of return and no reduction in principal balance over the last six months.
July 1 Interest Rate Change
Consistent with prior years, and now as outlined in our Offering Memorandum, our rates did not change suddenly during the economic hardships, and your investments continued to earn a rate of 2.90% until the 6-month term ended on June 30. Our rates are always subject to change on January 1 and July 1 of each year. The new rate for July 1, 2020 to Dec 31, 2020 is 1.40%. This is based on the Bank of Canada overnight lending rate, plus 1.15%. We trust you will find this is a reasonably competitive rate for an investment that is not locked in, has no term and no fees.
We would like to thank every one of you for being ministry partners with us. You may not feel like you are actively participating in ministry when you invest your funds with us, but that is precisely what you are doing! Through your investments, we can provide funding to our MB Churches, camps, schools and pastors, often allowing for opportunities that wouldn’t otherwise be possible. We wish we could share every story with you! That is not always possible, but here is a short comment from one of our pastors:
We had the opportunity to serve in a community that has historically been very difficult for an established church to thrive. CCMBC worked to help us achieve our goal of moving into [this community]. This has enabled us to get to know people in a deeper way. Our mission in life is to help people see the hope that is in Jesus. One of the best parts of that is the relationships we form and then getting to learn from those we meet, and all grow together. Lord willing, we look forward to many years of BBQ’s, kids’ camps, and other community building events with our new neighbours.
Thank you for investing to make a difference!
Chief Financial Officer