Fast Facts: ACEF 2003 • The market value of the fund grew from $54 million to $64.7 million • $2.16 million of this increase came from new endowments • $11.31 million came from net investment appreciation • $2.74 million was distributed to beneficiaries • ACEF helped provide income to 151 beneficiaries, including the Diocese, local parishes, and other organizations • You can start your own ACEF fund by calling (212) 686-0710, ext. 54 Endowment: The act of setting up a fund or permanent provision for the support of the Diocese, its parishes or affiliated organizations. The donated amount is invested with its annual income providing support in perpetuity. Learn more about endowments. The Armenian Tradition of Giving to the Armenian Church: In response to questions about the tradition of giving in the Armenian Church, V. Rev. Fr. Krikor Maksoudian’s The Armenian Tradition of Gifts Given to the Church is available on our website. Printed copies may be obtained by calling George Kassis, Director of Communications and Development, at (212) 696-0710 at ext. 54.

Solid Investment Leads to Record Year for Endowments

Banner year for the Armenian Church Endowment Fund (ACEF)

ACEF had its best year in 2003. Creating the right mix of investments, bringing in new donations, and direction from its board of trustees made 2003 a banner year for the Armenian Church Endowment Fund (ACEF). That success meant more income channeled to the Diocese, local parishes, and other Armenian cultural and religious organizations, and a 7% increase in undistributed appreciation for each fund.

2003 was the single most successful year since the fund was created in 1974.

“By contributing to the Armenian Church Endowment Fund, we are building a permanent financial base for the Armenian Church in perpetuity, while insuring its future for our children and grandchildren,” said Kevork Hovnanian, chairman of the ACEF Board of Trustees. “This is a meaningful way to honor our families; it is a living legacy.”

Growing the endowment

Since 1998, the principal invested by ACEF has grown from $38 million to $64 million. With more principal invested and sound investment and distribution practices, the fund is able to distribute more to beneficiaries. The goal of ACEF is to provide a steady stream of financial support to its beneficiaries for generations to come.

“Each gift is invested immediately to earn for its beneficiary,” said George Kassis, executive director of ACEF. “The principal is invested in perpetuity and remains untouched.”

Even with the sluggish stock market in recent years, the ACEF Board of Trustees made investment decisions that allowed it to significantly out pace overall market activity. During 2000 to 2002, an index fund mix similar to ACEF dropped in value an average annualized 7.36% and a cumulative 20.49%. ACEF investments during this brutal period dropped an average annualized 2.44% and a cumulative 7.13%.

“Investments managed by ACEF are managed not to make a quick buck, but to support our church and organization for generations to come,” Kassis said. “Our goal is to ensure that gifts to the fund are invested wisely and grow year after year.”

Helping our faith

In 2003, ACEF paid out $2.7 million in interest income to 151 beneficiaries. That amount was up from the $2.4 million distributed in 2002.

Each person who sets up a fund with ACEF, designates a beneficiary organization, which will receive an annual distribution based on a percentage of the principal invested.

The largest beneficiary in 2003 was the Eastern Diocese, which received a distribution of $1.25 million in interest income, providing funding for efforts such as youth ministry, college outreach, Armenian and Sunday Schools, music and deacon training, and mission parish support.

“With the ongoing support of the funds invested in ACEF, the Diocese is able to spend less time worrying about raising funds and more time focused on reaching the Armenian community,” said Archbishop Khajag Barsamian, Primate of the Eastern Diocese and President of the ACEF board. “When people create endowments for the Diocese, we’re assured they’ll continue to support our ministries for generations to come.”

The major beneficiaries of the 2003 annual distribution sent out in March 2004 were as follows:

• The ministries and programs of the Eastern Diocese
• St. Nersess Armenian Seminary
• The Mother See of Holy Etchmiadzin
• St. James Church Watertown, MA
• Holy Martyrs Armenian Day School
• St.Leon Church Fair Lawn, NJ
• Fund for Armenian Relief
• The Armenian Patriarchate of Jerusalem
• The St. Tarkmanchatz School
• The Holy Cross Church of New York City
• St. Gregory The Enlightener Church, White Plains, NY

Local parishes also benefit from ACEF. St. James Church of Watertown, MA, was the parish with the largest ACEF investment income in 2003, a total of $104,000.

St. James benefits from a total $2.1 million endowment. Most of the parish’s principal has been raised by the parish specifically for its endowment, but $400,000 comes from individuals who established their own endowment funds with St. James as the beneficiary.

“If you have a strong endowment fund, you can do more educational, spiritual, youth, and outreach programs,” said Fr. Arakel Aljalian, pastor at St. James. “The continued yearly financial support of endowments brings our community together.”