Action Required To Remain Invested In The UUCEF!
On October 9th the UUCEF, LLC mailed out a new Investment Information Memorandum, Subscription Agreement and, Operating Agreement.
If you have not already received your package you should be receiving it very shortly. We must receive one completed Subscription Agreement for every account you currently hold in the UUCEF. If you intend to remain invested in the Common Endowment Fund you must sign and return the Subscription Agreement to the UUA no later than November 30, 2015. Failure to return the agreement by the deadline will result in the closure of your account(s) and the return of your assets.
It is our goal to have the transition completed by December 31, 2015 but we need your help to accomplish this.
As a reminder of why we are taking these steps. Currently the UUCEF is part of the UUA. That means that when congregations invest in the Fund, they actually give their assets to the UUA subject to the contractual obligations enumerated in the Subscription Agreement. Our Investor Information Memorandum identifies this a risk factor. If the UUA were ever subject to a major claim on its assets, a court could determine that congregational assets be used to satisfy the obligation. Given the UUA’s current balance sheet, this is highly unlikely, but prudence requires us to take this risk seriously. Both the UUA’s legal counsel and the auditors have recommended that we set up a separate legal entity to hold the assets of the endowment, thus insulating congregations from this risk.
If you have any questions regarding the materials please contact Susan Helbert, Assistant to the Treasurer, at firstname.lastname@example.org or 617-948-4306.