Investment Policies
Anabaptist Financial believes that money reinvested in the Kingdom of God is both a secure and productive investment. By providing investment services, Anabaptist Financial enables individuals to reinvest money and receive a high interest yield. The overarching principle guiding our investments is to advance the Kingdom and enhance financial fellowship by facilitating mutual aid with mutual gain within the brotherhood.
In order to achieve mutual aid fellowship, security, and good interest yield, Anabaptist Financial reinvests to the greatest extent possible in Anabaptist people committed to establishing themselves in the Anabaptist community in a manner consistent with biblical truths, as defined in the 1963 Mennonite Confession of Faith or earlier similar confessions.
The loans program offers loans for business real estate, business operations, and home mortgages. We do not offer consumer loans, such as those for automobiles and consumer items. Through the loan application process, Anabaptist Financial measures risk factors and determines the integrity and financial ability of the individual or organization.
Directing your investment
The investment fund is pooled as one fund for risk management. However, Anabaptist Financial offers two options in directing your investment toward a person or group of your choice.
Personal investment
– An investor or group of investors may establish a personal loan agreement with a specific borrower. Anabaptist Financial provides oversight and administration for the loan. This option is attractive to investors who wish to offer personal loans, but do not wish to make direct loans to individuals without organizational management.
Undesignated investment
– All undesignated investments will be reinvested for generally stated purposes of Anabaptist Financial. This broadest parameter still requires an individual to live in a manner consistent with biblical truths and lifestyle, as defined in the 1963 Mennonite Confession of Faith or earlier similar confessions.
Adjusted interest rate
Anabaptist Financial will pay interest on the amount invested, as well as any interest that has been added to the investor’s account at a variable rate equal to the six-month Treasury bill as published in The Wall Street Journal, plus 1.5 percent. Adjustments to the variable interest rate occur quarterly on January 1, April 1, July 1, and October 1 of each calendar year, regardless of any interim change to the six-month Treasury Bill. Adjustments are indexed to equal the previous month’s six-month Treasury bill on December 1, March1, June 1, September 1 (to the nearest 1/8 of one percent), plus 1.5 percent.
Quarterly interest payments
Interest will be paid quarterly on March 31, June 30, September 30, and December 31 of each calendar year.
Minimum investment
A minimum investment of $2,500 is necessary to establish an investment account. Additional investments may be made thereafter in amounts of $1,000 or greater.
Principal payments
Anabaptist Financial will repay the principal amount and all accrued and unpaid interest – including any interest added to the account – within 60 days after a written request for payment from the investor is received. Frequent withdrawals are discouraged.
Reserve fund
To meet repayment obligations to investors, Anabaptist Financial maintains a reserve fund in an amount equal to 10 percent of the aggregate principal balance of all investments, with a maximum limit of $2.5 million.