Protecting your future • Living your values • Building a better world

A newsletter for the members of FaithLife Financial Fall 2009

Report on Member Connect meetings

Keeping you Connected

Socially responsible investing

A visit to an African village

Horizons Scholarships awarded

Our Values With Christ as our model, we embrace these values:

We value People. We will treat each person with respect fostering a sense of teamwork. Through open communication, we will speak the truth in a caring manner and support one another in achieving our goals. We will celebrate the success of others.

We value Integrity. We will practice honest and ethical management. We will follow through on commitments and be accountable for our actions. We will use our professional and personal skills in the service of our members. We will model our values.

We value Excellence.We will strive to achieve results that delight our members. We are committed to continually improving our services and products. We will foster an environment of achievement, innovation and co-operation. We will embrace change as an opportunity.

We value Stewardship. We will manage our resources – time, talents, and treasure – for the good of others in a prudent and progressive manner. We will use all that we have in an efficient and effective manner to fulfill our mission.쇓

FaithLife Connections is the official member publication of FaithLife Financial. Produced bi-annually by the Marketing Communications team, FaithLife Connections provides news and information for our members and their Chapters including initiatives and partnerships that are at the core of our mission to “do well financially in order to do good - for our members, churches and the world at large.”

DIETER E. KAYS, LLIF, PhD, MDIV

President and CEO

CAROLYN C. WORTHINGTON,

LL.B, LL.M, FCIS

Corporate Secretary, General Counsel and Chief Compliance Officer

KAREN C. BJERLAND, FIC

Vice-President, Career Channel Sales

KENNETH W. WOODS CMA, CFA

Vice-President, Operations and Chief Financial Officer

Head Office administration

Volume 5, Issue 1 – Printed in Canada on environmentally friendly paper.

A report on Member Connect meetings

New partnerships and appointments

Fall events

Chapter kudos

ONE LIFE Experience

FaithLife Financial at Home

Scholarships awarded

Investing with conscience

3

6

8

9

10

11

12

13

What’s inside ...

30%

1

This edition of FaithLife Connections reports on the economic environment and how we are managing our investments for the benefit of safety and return – but also engaging in socially responsible investing.

We continue to look for new partnerships that will grow our business beyond the borders of Canada. We are working with World Vision, Thrivent Financial for Lutherans in the United States and with Luterprev, a Lutheran financial services organization in Brazil, where I spoke recently at a conference on aging.

We also take the time to share some examples of how we are building a better world. As this issue was heading to the press, I just returned from touring the ONE LIFE Experience – a 2,000 square foot interactive African village set up right in the heart of St. Jacobs, Ontario. Sponsoring this event with World Vision was our way of educating people about the desperate need to help children affected by HIV/AIDS.

So as the exhibit makes stops across the country in 2010, I encourage you to see it first-hand. I guarantee the experience will touch your heart.

We’re proud to report on the winners of the 2009-2010 Horizons Scholarships. We also recount some of the examples of how our chapters are raising funds – and we are matching those funds.

You are very important to us. That’s why we report on the Member Connect meetings held in 2009 that proved to be informative, stimulating and in all cases, appreciated by those who attended. Thank you for your support. Along the same theme, member satisfaction continues to be a goal for us and so we report on the results of the most recent survey.

This refreshed edition of FaithLife Connections was built with you in mind. We hope that you enjoy the news and that the new format is pleasing to you. God bless you.

Moving forward

Dr. Dieter E. Kays President and CEO

“How wonderful

it is that nobody

need wait a single

moment before

starting to improve

the world.”

Anne Frank Diary of a Young Girl

2

As members of FaithLife Financial, our goal is to keep you informed about what we are doing to stay strong and build a better world.

With that goal in mind, in the Spring we ‘hit the road’ and met with 293 people from across Canada at 15 Member Connect meetings.

President Dieter Kays updated everyone on the happenings within FaithLife Financial in the past year, and they heard first-hand about the challenges facing the financial services industry, especially in these turbulent economic times. He also reiterated how our fraternal uniqueness continues to set us apart in the industry, and how this uniqueness will be the platform for our growth and carry us into the future.

Truly connecting is a two-way street. We thank you for your feedback and valuable insight into challenges facing you and your families … so that FaithLife Financial can respond effectively as we journey together.

A special thank you to everyone who came out

As an added incentive, we offered a special grant of $10 to each Chapter member who attended. Some Chapters received $250 which helped them further their ministry.

We hope to talk with many more of you at Member Connect meetings we are hosting in 2010. Please visit our website in early 2010 for a schedule of meetings we have planned in a community nearest you!

A report on our meetings with members held this Spring

“Our challenge as a member-based financial services organization, spread across Canada, is how we can connect with our members, promote their understanding of the organization and build a sense of real ownership and commitment. Member Connect meetings are one way to get input and ideas. I am encouraged by the response and we will work hard to increase the attendance at future forums.”

Dr. Dieter E. Kays, President and CEO

connectconnect keeping you connected . . .

Need to connect with us?Don’t wait until the next Member Connect meeting to connect and tell us what you think!

Here’s how you can reach us:

• Contact your FaithLife Financial Representative • Call our Customer Care Centre at 1-800-563-6237

• Visit www.faithlifefinancial.ca • Join us at upcoming Christian events this Fall!

3

Each year we conduct a survey of FaithLife Financial members to measure overall satisfaction with FaithLife Financial, and specific areas of product, services and member benefits.

Again, thank you to everyone who took the time to provide this valuable feedback. It helps us to understand how we can serve you better!

Here is what we learned:

• Overall member satisfaction improved from 2007 • Other highlights include:

– 90% of members would refer friends and family to us

– 89% find us trustworthy

– 88% like our Christian values

– 81% find our representatives very helpful

These scores remain strong and we are pleased with the results.

Results of the 2008 Member Satisfaction Survey

Your opinion matters

The 2009 Member Satisfaction survey will be conducted in September and October. If you receive a call from the national research firm conducting the survey and you have questions, please call our Customer Care Centre at 1-800-563-6237.

Our lives are connected by a thousand invisible threads, and along these sympathetic fibres, our actions run as causes and return to us as results. Herman Melville

4

Brazilian sister organization

+

Founded in 1917 to provide pension plans to

Lutheran pastors in Brazil, Luterprev’s President

Everson Opperman invited President Kays to visit

the city of Porto Alegre to speak at a conference on

aging and learn more about a sister organization in

South America.

While there, President Kays had an opportunity to meet with the President of the Lutheran Church of Brazil, Dr. Walter Altmann and hear first-hand how Lutherans have been carrying out ministry in their communities for over 185 years. He had a chance to see how Lutheran Christian education is alive and well among 85 independent schools that serve 44,000 students.

He also visited a church-sponsored daycare centre in a poor community where drug dealing and poverty live hand-in-hand, but where children and families often rise above these conditions. Like FaithLife Financial, Luterprev is involved in supporting these types of ministries.

Happily, there is another side to life in Brazil. Meeting with government officials and Canadian consulate representatives, our President discovered the richness of the resources that exist in Brazil, the entrepreneurship of its people, and the stability that has been achieved in the areas of commerce and government institutions.

With a country the size of Canada population-wise, a growing middle class and a market capitalization of over one trillion dollars, Brazil is looking forward to a bright future. In the midst of this burgeoning economy, Luterprev is well positioned to grow, and give back to its individual members, the church, and the communities of Brazil. Mr. Opperman believes that God is opening doors for Luterprev to serve in powerful ways and hopes the future holds a partnership with FaithLife Financial.

“I believe we can grow 30% per year but we need a strong partner. There is much that we can learn from one another.”

Everson Opperman, President, Luterprev

5

Investment Committee expands two membersAs Chairman of FaithLife Financial’s Investment Committee, Ken Woods, Vice-President Operations and Chief Financial Officer is pleased to announce the addition of two new members to the Committee:

Douglas Brock, BSc., MBA

Mr. Brock brings a wealth of experience to this post. Doug earned his BSc. at McGill University, and his MBA at the University of Western Ontario. He is currently serving on the Investment Committees of

Grand River Hospital, KidsAbility, and the Ontario Arts Council. He has held three Vice-Presidential positions in his career: Ogilvy & Mather, Baton Broadcasting, and CIBC World Markets.

Timothy Fleming, B.Comm., LL.B., LL.M., MBA, EMBA

Mr. Fleming is a tremendous resource for FaithLife Financial from both a legal and business perspective. He has an undergraduate degree from the University of Guelph, two law

degrees from Osgoode Hall and Leicester University, and an MBA. His EMBA on International Wealth Management was earned at Carnegie-Mellon University in the US. For the past several years, Tim has been Managing Director for Westgate Insurance Advisors Inc., and is rebuilding his legal practice.

A warm welcome P. Wayne Musselman has served on the board since 2006 and was elected Chairman of the Board for FaithLife Financial in February 2009. He has served on several Board committees including chairing the Audit, Risk, Compliance and Finance Committee. He brings extensive

financial and business experience, both domestically and internationally, primarily as a senior partner at Deloitte and Touche. Mr. Musselman has experience as the Chief Agent for several foreign fraternal benefit societies. He is Director and Treasurer of Missionary Health Institute, Community Bible Study and Canadian Fellowship Foundation. We are honoured to have Wayne leading our Board of Directors.

Carolyn C. Worthington joined FaithLife Financial in July 2009 as FaithLife Financial’s new Corporate Secretary, General Counsel and Chief Compliance Officer. She comes to us from Equitable Life where she held a similar role for the last eight years. Prior to that time,

Carolyn was in private legal practice for six years, and with Westinghouse Canada Inc., as in-house counsel for eight years. She was admitted to the Ontario Bar in 1985 and gained her Masters degree in securities law from Osgoode Hall in 1998. Carolyn is active in her church as well as in community musical theatre. We welcome her to FaithLife Financial.

A fond farewellLarry Dillon will retire from his position as Corporate Secretary and General Councel in October 2009. We are saddened to see Larry leave us as he has been such a valuable part of the growth and change that has made FaithLife Financial what it is today. President Kays says that, “Larry’s ability to build positive relationships with regulators, his leadership and expertise in the area of compliance, and his skill as Corporate Secretary was invaluable during his tenure. He will be greatly missed.” Larry, we wish you much happiness and success in the next chapter of your life.

On July 7, 2009, Geoff McCartney of Regina, Saskatchewan was called home to be with God. A treasured colleague and friend to many in our organization, Geoff had been a Financial Representative with FaithLife Financial for the past five years. Our prayers are with his wife Jennifer and their three children.

In memoriam, Geoff McCartney

4

6

When a FaithLife Financial member purchased a permanent insurance policy back in 2006, the last thing on his mind was that he would die within three years. After all, he was relatively healthy, took care of himself by eating well and exercising and he’d just been given a clean bill of health from his doctor. He was simply putting life insurance in place to make sure his family was protected down the road … and providing for a favourite charity.

Then life happened and our member was diagnosed with cancer and sadly died. However, in the end he was thankful that he had left his family financially secure.

In addition, thanks to the FaithLife Financial Charitable Giving Benefit, he left a lasting legacy in his Will to the Calgary chapter of the Canadian Cancer Society.

Where there’s a Will, there’s always a way

The Charitable Giving Benefit is paid by FaithLife Financial to the charity of your choice upon your death. The amount equals two percent of the face amount (up to a maximum of $5,000) of a FaithLife Financial permanent life insurance policy. This benefit is available at no extra cost to you.

Leave a lasting legacy through the Charitable Giving Benefit

We’re with you for life

We recently heard from a member with a close and longstanding connection to FaithLife Financial. The relationship began more than 40 years ago when our client’s father purchased a permanent life insurance policy for him at the tender age of one.

Throughout his life, our client John appreciated working with a financial services company that demonstrated strong values and with people he could trust and rely on for support. For example, FaithLife Financial was there when he headed off to university with a Lutheran Life Scholarship under his arm. When he needed to pay off his student debts, his Financial Representative was there to help him borrow against the cash value in his life insurance policy.

Fast forward ten years. John is married and works as a successful tax lawyer. But even today, his FaithLife Financial Representative is one of the first people he calls when he needs some solid financial advice.

Most recently at their annual review meeting, his Financial Representative was there again and helped the couple refine their financial strategies to keep pace with their expanding careers and family responsibilities, including:

• Protection for future income – with a product that offers cash values as well as a growing death benefit • Opportunities for tax savings • Flexibility to use life insurance as a strategy for charitable giving.

We’re here to help you

Contact your Financial Representative to discuss an annual review of your financial goals, or contact our Customer Care Centre at 1-800-563-6237 to arrange an appointment.

No matter what your insurance needs – family protection, investment solutions or estate preservation

7

Girls Night Out in the US FaithLife Financial’s Girls Night Out events have touched the lives of over 40,000 women in more than 90 Canadian communities since 2005. They engage both Christian and non-Christian women in an environment that allows them to laugh, unwind with friends and be inspired by a powerful message.

Building on the member vote last Fall to expand membership beyond Canada, we are excited to partner with World Vision US and Thrivent Financial for Lutherans to bring Girls Night Out to the United States. This new initiative allows us to learn more about new, unexplored markets.

Fall events calendarHere are some of the exciting events we’ll be at in communities near you this Fall:

October 20-21 Couples Night Out Central Ontario Tour Kitchener, Cambridge, SimcoeOctober 26-29 Couples Night Out Alberta Tour Lethbridge, Calgary, Airdrie, WetaskawinNovember 21-28 Girls Night Out Greater Toronto Area Tour Scarborough, Oshawa, Queensville, Caledon, EtobicokeOctober 23-24 Promise Keepers ReginaNovember 6-7 Promise Keepers LethbridgeNovember 13-14 Promise Keepers MississaugaNovember 15 Promise Keepers Worship Night with Robin Mark WinnipegNovember 6, 10 & 20 Waterloo Lutheran Seminary Lecture Series Waterloo

Fun: You’ll love this evening out with your significant other as you are engaged with a thoughtful and funny message about the challenges all couples face as they do life together.

Faith: Be inspired to love, laugh and live as God originally designed in relationship with Him and others.

Fellowship: Make new friends with other couples from your area as you experience a great message that will keep you talking for weeks to come!

Couples Night Out has the simple vision to engage couples in communities across Canada, in an evening of fun and faith. The humour, ministry and personal reflections of the speakers will inspire couples to live, love and bless each other as God originally designed. The theme will be celebrating our differences and will feature an interactive game show format that highlights our uniqueness in God’s image.

Check out Couples Night Out event details near you at www.faithlifefinancial.ca/events

Visit our website at www.faithlifefinancial.ca for updates and more details.

8

St. Peter Lutheran, Teulon, MB raised $9,600 for palliative care services in the community.

Second St. John Lutheran, Sebringville, ON raised $5,203 to support its Lutheran Hour Radio, Evangelical Lutheran Women and local cemetery maintenance efforts.

First Lutheran Christian School, Kelowna, BC raised $4,295 to support the Eva Ruf Resource Centre in Kampala, Uganda.

Emmanuel Lutheran, Southey, SK raised $2,166 for new flooring in the choir loft.

Berea-By-The-Water Lutheran, Goderich, ON raised $2,055 for its Vacation Bible School.

Chapter kudos

Matching grant goes the distance On May 23, 2009, Hills of Peace Lutheran Church in Kamloops, BC was turned into an Italian bistro when diners enjoyed a delicious pasta dinner and participated in a silent auction. The Chapter teamed up with its young people and raised $1,444, including a matching grant of $500 from FaithLife Financial. With these funds, the youth group is off to the 2010 Youth Gathering in London, Ontario.

A pattie for a paddyFaithLife Financial Representatives from our Eastern Canada office held a BBQ to raise funds for the rebuilding of rice paddies in Myanmar. The project was inspired by two Burmese missionaries who shared their stories of God’s miraculous work in the lives of the people of Myanmar.

Food and supplies were donated by local businesses and the event raised $1,650 which will go towards purchasing rice paddies in Myanmar. Thank you to everyone who made this a successful initiative!

“The Matching Grant Program is a fantastic benefit that FaithLife Financial has made available to its members to

help support our community. Our church family has enjoyed fun and fellowship at several events including an Easter

morning breakfast and a spaghetti dinner. This year, we raised funds to help the hungry, the hurting and the homeless

in Windsor through our Food Cupboard program and FaithLife Financial’s Matching Grant Program.” Christine Erdmann, Peace Lutheran Church, Windsor, ON

TOP

5MATCHINGGRANTS

1

2

3

45

The impact of a Chapter Matching Grant is tremendous. Here are just a few examples:

Experience

Hearts across Waterloo Region step into the lives of African children affected by AIDS

In September 2009, thousands of people in Waterloo Region left behind the comfort and privilege of life in Canada, and together with World Vision as their guide, stepped into the lives of four real children living in an AIDS-affected community in Africa.

Sponsored by FaithLife Financial when it stopped in St. Jacobs, Ontario, the 2,000 square foot interactive exhibit combined a heart-wrenching audio tour with captivating photography that transported visitors into the heart of Africa where they experienced Olivia, Beatrice, Stephen and Timothy’s journeys, to help Canadians bear witness to the greatest humanitarian crisis of our time.

The ONE LIFE Experience will begin touring again in 2010. Watch for it to come to a community near you. ONE LIFE Experience will touch your heart.

For more information about the ONE LIFE Experience, visit the World Vision website at www.worldvision.ca/onelife. Together we can all work toward building a better world.

[ Average life expectancy in North America = 77 years ]In Zambia = 35 years

[ North American teens spend $101 every week ]$101 will send 2 African children

to school for one year

10

You understand that finding a balance between living a good life and keeping your budget in check is difficult … even in the best of times. That’s why FaithLife Financial and Thrivent Financial for Lutherans are piloting “FaithLife Financial at Home” gatherings in the Toronto and Edmonton areas.

Finding financial direction

Whether you’re looking to save for retirement, fund your children’s education, or simply pay off that nagging debt, we’ll show you how a few simple concepts can start you on the road to navigating financial balance.

With a focus on fun and fellowship, our trained Financial Guides will provide each participant with a personalized consultation in a relaxed setting.

Living in BalanceAchieve your dreams

www.faithlifefinancial.ca • 1-800-563-6237

You can host a Gathering!

Discover how talking about finances in a relaxed and interactive atmosphere can be interesting, non-threatening and fun!

Find out more by visiting: www.faithlifefinancial.ca

From start to finish, these free, hour-long gatherings focus on learning

about finances in a fun, relaxed atmosphere … without the need for you

to share your personal financial details.

GO

AL

ACCOMPLISHED

11

Congratulations to the FaithLife Financial members awarded scholarships for the 2009 - 2010 school year.

Students attending full-time college programs each received $750; those studying in full-time university programs each received $2,000.

We wish you continued success in your academic careers!

The application process for the 2010 Horizons Scholarships will begin in March 2010. Open to FaithLife Financial members, please visit www.faithlifefinancial.ca for details in March, or contact your FaithLife Financial representative or Customer Care Centre 1-800-563-6237.

Chelsea DrungWaterloo, ON Holy Cross Lutheran

Anne-Dietreya Schlein Mission, BC Mount Calvary Lutheran

Caroline Campbell-Seyler Kitchener, ON St. Jerome Catholic

Luanne CurrieEdmonton, AB River West Christian

Melissa BellefeuilleOttawa, ON Metropolitan Bible

Erin BestvaterToronto, ON Christ Lutheran

Sara BittnerWinnipeg, MB Peace Lutheran

Amanda HemmingDrumheller, AB Grace Lutheran

Erin HillisRegina, SK Christ Lutheran

Erin LangagerTofield, AB Bardo Lutheran

Meghan LeechVictoria, BC All Saints Anglican

Greg LynchWaterloo, ON St. Luke Lutheran

Brett PelzerRegina, SK Mount Olive Lutheran

Jared SchoeppEdmonton, AB Bethel Lutheran

Kara SorensonCamrose, AB Messiah Lutheran

Aaron VoelkerStittsville, ON Christ Risen Lutheran

Alex VeilerHolland Landing, ON Holy Cross Lutheran

Seventeen Horizons Scholarships awarded for 2009 – 2010

Plan for next year now!

12

Many people today want to know their investment dollars are being invested in companies or funds that exercise good stewardship and do business with a conscience. Socially responsible investing (SRI) principles were factored into FaithLife Financial’s Investment Policy in 2006 and govern how funds from member assets derived from insurance and annuity products are invested.

The FaithLife Financial corporate investment policy requires us to consider environmental, social and corporate governance factors (ESG factors) balancing these with the responsibility to ensure the safety of investments and reasonable rates of return to its members. These SRI investment guidelines align with the Principles for Responsible Investment, as adopted by the United Nations.

As a result, member payments are invested according to this corporate investment policy, allowing us to invest with a conscience. As well, the income from these investments supports many of FaithLife Financial’s programs that benefit members, their congregations and communities, and people in need worldwide. In essence, this is the point of doing well in order to do good from FaithLife Financial’s corporate investment perspective, and differentiates our not-for-profit, member-based organization from others.

FaithLife Financial’s wholly-owned investment management subsidiary, FI Capital Ltd., has been entrusted with managing almost $200 million of FaithLife’s Financial’s overall investment portfolio using these principles.

Investing with conscience – living our values

Building Wealth – with a Difference

Invest with TRUST, CONFIDENCE and INTEGRITY.

To learn more about FI Capital including our investment philosophy,

portfolio of funds and to receive our e-newsletter, Market Update,

visit us online at www.ficapital.ca or call 519-342-2351

Know what you own and own what you know

Written by Terry Bodnar, CA, CIP, CFA, CFP President and CEO of FI Capital Ltd.*

Less than ten months ago, market pundits were forecasting the collapse of the global financial system and the onset of another Great Depression. At present, many of these same experts are claiming the recession is over and that we have started a new equity market rally. Since the market lows recorded in early March 2009, the S&P/TSX is up nearly 45% while the S&P 500 is higher by more than 50%.

At FI Capital, we never believed there would be a meltdown of the Canadian banking system. When others were abandoning market-based investments for the safety of GIC and money market funds, we were selectively buying high-quality equities and bonds. Perhaps this skepticism and our proven “value” approach to investing explains why all six of FI Capital’s pooled funds ranked in the top quartile for the one-year period ended June 30, 2009, and as of July 31, 2009, our Fixed Income Fund placed second out of 222 Canadian fixed income funds, as measured by FUNDATA Canada Inc.

With respect to recent equity gains, we are suspicious of the sustainability of any rally that is so highly dependent on government handouts and bailouts. Make no mistake, while the US and Canadian economies are improving, we think we are in the midst of what can best be described as “less of everything”-- jobs, revenue, income, profits, and consumer spending. Any corporate profitability being reported is primarily the result of management slashing labour and production costs, not from higher revenues.

It is difficult to understand why the current equity market is priced for 40% profit growth and GDP growth of 4.0%. Sustainable economic recoveries are dependent on consumer confidence and spending. Statistics like these seem to suggest further retrenchment, not additional spending.

At FI Capital, we believe that we are headed for an extended period of sub-par economic growth. As a result, we urge extreme caution and recommend that now may be an appropriate time to review your current investment portfolio with your Financial Representative to ensure it is consistent with your risk tolerance. Again, know what you own and own what you know.

*FI Capital Ltd. is FaithLife Financial’s wholly-owned investment subsidiary that manages corporate investments on behalf of FaithLife Financial.

This commentary is for information only and is not intended to be legal or investment advice.

Investing in turbulent times

US statistics show: • nearly 10 million Americans receive some form of government benefits

• banks are still tightening credit guidelines

• one in every eight American mortgages is either in arrears or in the foreclosure process

• one in six Americans are either unemployed or underemployed

14

Morgan Fournier of Quesnel, BC was our lucky winner of the Trip to England contest in 2008. She attended a Girls Night Out event in Prince George where she filled in a ballot, never believing she would win. A student at UNBC in her third year, Morgan had never before traveled outside of North America. Here are a few excerpts from her journal:

“We had a fabulous trip! My mother and I are both so thankful for the time we got to spend together.”

“England, Ireland, and Wales … surpassed anything I ever expected. It was so beautiful and amazing! The culture really impressed me and I found it to be really faith-centered …”

“I learned that as things in life change, it’s really important to spend time with those you love. Thanks for the opportunity. I can’t wait to go back. These memories are something Mom and I will always treasure.”

470 Weber Street North Waterloo, ON N2J 4G4Tel: 1-800-563-6237 or 519-886-4610 • Fax: 519-886-0350

www.faithlifefinancial.ca

Life changing experience for winner of 2008 England trip

Imagine yourself setting sail on an exciting 9-day cruise through the exotic Caribbean and spectacular Panama Canal. Enjoy ports of call including Haiti, Columbia, Panama, Costa Rica and the Grand Cayman Island. Delight in the spectacular beauty of God’s great earth and one of man’s engineering masterpieces. Trip for two includes airfare and all onboard meals and entertainment.

ENTER TO WIN!

cruise the

www.faithlife�nancialcontest.ca