TREASURERS REPORT The Evangelical Covenant Church Covenant Pension

TREASURER’S REPORT

The Evangelical Covenant Church Covenant Pension Plan Bethany Benefit Service National Covenant Properties Covenant Trust Company Paul Carlson Partnership

Covenant World Relief 2005 $1, 303, 000 2006 $1, 315, 000 2007 $1, 267, 000 2008 $1, 558, 000 2009 $1, 016, 000 Total $6, 459, 000

Paul Carlson Partnership 2005 $ 884, 000 2006 $1, 253, 000 2007 $1, 186, 000 2008 $ 794, 000 2009 $ 630, 000 Total $4, 747, 000

Haiti Earthquake Relief $1, 049, 000

CO KB FOWM Covenant World Relief Paul Carlson Partnership PCP SPE MISSION PMs STMs &MPs MINISTRY CWR BUDGET Base Budget Project Missionaries Short-term Missionaries Friends of World Mission Kingdom Builders Sustaining Pastoral Excellence Covenant Orientation Mission Projects

Budget Results Ø Expenses Cuts Ø Mix of Revenues Ø Net +$99, 000

Bethany Benefit Service Ø New Benefits o Vision o Group Life at $100, 000 Ø Enrollment o 3% increase o 37 new enrollees

Medical Insurance Premium Increase 280 260 Comparable market premium increases 240 220 200 Cost $avings 180 160 140 Bethany premium increases 120 100 2002 2003 2004 2005 2006 2007 2008 2009

1996 -2008 Pension Benefit Enhancement 140% Total Value $40 Million 120% % Increase 126% 100% 80% 106% 60% 40% 20% 34% 0% Retiree Minimums Surviving Spouse Minimums Across the Board

Pension Benefits 7 000 6 500 ($ in thousands) 6 000 5 500 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 '0 8 '0 6 '0 4 '0 2 '0 0 '9 8 '9 6 '9 4 '9 2 '9 0 '8 8 1 000

Key Investment Considerations Ø Asset allocation and diversification—improve risk/return relationship 1992 2009 Absolute Alternative Return Investments Real Estate Fixed Income International Equity Domestic Equity Fixed Income Domestic Equity

Assets of Pension Fund 180 ($ in millions) 160 140 120 100 80 60 40 20 '0 9 '0 7 '0 5 '0 3 '0 1 '9 9 '9 7 '9 5 '9 3 '9 1 '8 9 '8 7 '8 5 '8 3 '8 1 0

Assets National Covenant Properties 350 325 ($ in millions) 300 275 250 225 200 175 150 125 100 75 50 25 '0 9 '0 7 '0 5 '0 3 '0 1 '9 9 '9 7 '9 5 '9 3 '9 1 '8 9 '8 7 '8 5 0

The Loan Source for Covenant Churches Ø Of the churches that have loans, over 80% have loans with NCP Other

2009 New Church Loans National Covenant Properties In 2009, National Covenant Properties advanced $21, 000 in new monies to help fund 50 church projects.

Assets under Management Covenant Trust Company 450 400 ($ in millions) 350 300 250 200 150 100 50 '0 9 '0 7 '0 5 '0 3 '0 1 '9 9 '9 7 '9 5 '9 3 '9 1 '8 9 '8 7 0

2009 Results Covenant Trust Company Ø New business $11. 6 million Ø Distributions $11. 6 million Ø % New business to conferences, churches, 41. 6% and camps Ø Assets $399. 6 million

AUDIT REPORT

TREASURER’S REPORT