We wish to inform Mennonite Brethren Church Legacy Account Holders (“Account Holders”) of recent events that may affect you and to outline the steps we are taking in response.
Recent Events
As you are aware, CCMBC Legacy Fund Inc. (“CCMBC Legacy”) provides financial and administrative services to the conferences, churches, agencies, and employees of the Canadian Conference of Mennonite Brethren Churches. Capstone Asset Management Inc. (“Capstone”) is engaged by CCMBC Legacy to provide portfolio management services to the funds held by CCMBC Legacy. Capstone invests in different funds, including what are commonly known as “funds of funds”, namely investment funds that invest in other investment funds.
We were recently informed by Capstone that CCMBC Legacy will experience a December 2025 write-down in three of these underlying funds, totaling $3.3 million.
We estimate that these adjustments will result in year end 2025 negative net unrestricted assets of approximately $5.2 million for CCMBC Legacy. In other words, our total obligation of $41 million to Account Holders exceeds the value of our assets by $5.2 million, or 12.7%.
Implications and Actions Taken
- Temporary pause on accepting new funds
CCMBC Legacy will not accept new funds from Account Holders until we develop a plan to restore the net asset position. - Withdrawal requests remain available
CCMBC Legacy continues to accept withdrawal requests by Account Holders in the normal course and intends to satisfy such requests within 45 days, as it always has done. - Interest continues to accrue
Interest continues to compound and accrue and remains payable semi annually on December 31 and June 30, the same as it always has done. - Liquidity remains strong, and we are monitoring closely
We are closely monitoring withdrawal requests and regularly updating our board of directors on liquidity. We currently hold more than enough readily available funds to pay withdrawal requests at normal levels. Provided withdrawal requests remain within normal ranges, operations will continue as usual – account holders will continue to have access to their funds. If withdrawal requests become unusually high, we may need to limit withdrawal requests on a pro rata basis or other equitable basis. - Work underway to restore net asset position
We have begun developing a plan to address the net asset deficiencies at CCMBC Legacy. Components of that plan include the sale of surplus capital assets, cost containment measures, and a review of ancillary services. While the affected Capstone funds may recover value in future quarters, we are not basing our plan on that possibility. To be clear, while our goal is to restore our investments back to the levels prior to the write-downs, this may take time and it will require patience by stakeholders. - Engagement of professional advisors
Our external advisors have been informed of these developments and are providing guidance on our response and plan.
Commentary
This communication is intended to inform all stakeholders and provide Account Holders adequate time to make informed decisions. While CCMBC Legacy is not required to proactively send this communication, we believe it is our moral responsibility to communicate clearly with our stakeholders. Our third value states: “We steward resources on God’s behalf. We exercise care and integrity as we oversee the funds and ministry assets entrusted to us. We demonstrate accountability and transparency in our reporting, policies, and actions.”
Although periodic losses can occur within any investment portfolio, we recognize the significance of these developments and the importance of capital preservation. In 2025, we proactively initiated an asset allocation study with a third party consultant and implemented a capital adequacy policy to support long term financial stability. The study and the capital adequacy policy will help inform our strategic plan in connection with the write-downs described above.
As we navigate the complexity of these interrelated matters, we ask for your prayers. Our first value reminds us that: “We operate in dependence on God. We live in prayerful and obedient attentiveness to God - Father, Son, and Holy Spirit. We seek to glorify His name.” May He guide our next steps.
To maintain consistency in communication, all questions should be directed to Jason Krueger, CEO (This email address is being protected from spambots. You need JavaScript enabled to view it.).
Jason Krueger, CFA
CEO, CCMBC Legacy Fund Inc. and CCMBC Investments Ltd.
Cory Regier
Board Chair, CCMBC Legacy Fund Inc. and CCMBC Investments Ltd.
