ARMENIAN CHURCH ENDOWMENT FUND

Marks Record Year in 2003

The right mix of investments, successfully promoting donations, and strengthening its team of leaders made 2003 a record-breaking one for the Armenian Church Endowment Fund (ACEF).

During its first board meeting of 2004 on February 26, the ACEF Board of Trustees approved the distribution of $2.7 million to the Diocese, its parishes and organizations, including St. Nersess Seminary.

ACEF announced 2003 was its single best year since the fund was created in 1974 in terms of return on investment. In 2003 the fund investments appreciated by $11.2 million or 23 percent. This appreciation, in addition to the $2.16 million in new endowments, brought the total value of funds invested in ACEF to $65 million.

“By contributing to the Armenian Church Endowment Fund, you are building a permanent financial base for the Armenian Church in perpetuity, while insuring its future for your children and grandchildren,” said Kevork Hovnanian, chairman of the ACEF Board of Trustees. “This is a very meaningful way to honor your parents and your family. Your gift is a living legacy.”

LIVING LEGACY GROWS

At the beginning of 1998, ACEF endowments totaled $38.7 million. In the past six years more than $25 million dollars have been raised as new endowments thanks to the generosity of many faithful. Some of these new endowments resulted from generous contributions from individuals while the balance came from persons remembering the Armenian Church in their wills and bequests. With the growth of endowment funds invested, ACEF is able to distribute more funds to provide a steady operating budget to the designated recipients.

Along with the increase in numbers of people creating new endowments, the recent growth of the fund can also be attributed to changes in its investment strategy and the reinvestment of some interest income.

“Each gift is invested immediately to earn income from the day it is received,” said George Kassis, executive director of ACEF. “The principal is invested in perpetuity and remains untouched.”

With professional council from Cambridge Associates, ACEF was able to limit the losses of the fund during the period 2000 through 2002, the three worst years in the history of the stock market since 1931. During this period, a portfolio similar to that of ACEF with 30 percent invested in bonds and 70 percent invested in stocks had a cumulative lost 20.49 percent over the three years. The ACEF portfolio, by contrast, only slipped by 7.13 percent during the three years, thanks largely to the ongoing care and maintenance by the board overseeing the fund’s investments.

Given the fluctuations of the financial markets, ACEF policy calls for ensuring a steady distribution of income to beneficiaries year in and year out. What is undistributed is held by ACEF and attached to each fund to allow for distributions in years when the market falls. Funds invested in ACEF from before 1998 have grown by an average of 19 percent, with both principal and unrealized gains providing income to beneficiaries in future years.

BOARD’S DEDICATION

The success of ACEF is attributable to the investment decisions made by its volunteer board of directors, with Archbishop Khajag Barsamian serving as president. Along with Chairman Kevork Hovnanian members include: Alex Dadourian, Vice Chairman, Mark Gabrellian, Secretary, Gregory Zorthian, Treasurer, and members Haig Ariyan, Haig Dadourian, Haig Deranian, Harry Keleshian, and Barbara Tellalian. The February 26 meeting marked the first for the board’s newest member, Karnig Durgarian, who was warmly welcomed.

Durgarian, a resident of Framingham, MA, is a dedicated member of the Armenian Church. He is the recipient of the St. Gregory Medal of Holy Etchmiadzin for his many roles. Durgarian is the godfather and major benefactor of the Armenian Church of the Holy Translators in Framingham, MA, and has been instrumental in the committee directing and fund-raising for the Diocese’s recent purchase of its Youth and Conference Center outside Albany, NY.

“I was brought up in the church, as was my wife Karen, and we’ve been involved in the church ever since we were children,” Durgarian said. “And we want to make sure our children have the same opportunities we had. We want to make sure the Diocese and our parishes remain strong.”

The principal donations invested in ACEF remain untouched in perpetuity. The future income generated from the investments is distributed to beneficiaries named by the establisher of the fund.

For more information on the Armenian Church Endowment Fund and to establish your own fund, contact George Kassis, executive director of ACEF, by e-mailing: georgek@armeniandiocese.org or calling (212) 686-0710 ext. 54.