The Episcopal Church Foundation in West Texas Investment Program

QUARTERLY REPORT
March 31, 2013 Market Report In late 2012, there was a lot of investor angst about the fiscal cliff and doomsday scenarios were plentiful. Fairly early in this quarter the President and the Congress reached several agreements that, while not solving all of the fiscal cliff issues, were sufficient to convince investorsand the general publicthat the economy was unlikely to be knocked off course anytime soon. This big sigh of relief was sufficient to embolden stock investors and drive the US equity markets to new all time highs. The Russell 3000 index, a broad proxy for the domestic stock market, achieved a gain of 11% during the quarter. The Dow Jones Industrial index gained almost 12%. International equity markets gained less than half the US market, but still posted a solid gain of 4.5% to 5%, depending upon the index used. As shown below, all capitalization sectors and all investment styles achieved nice gains for the year. Small cap stocks outperformed large by 143 basis points. In the large cap category, the value style beat the growth style by 281 basis points, whereas in the small cap category the growth style outperformed the value style by 158 basis points. The broad bond market, as measured by the Barclays Aggregate index, sustained a slight loss for the quarter. Short maturity bonds managed a slight gain.

Market Returns for Quarter

12.3% 9.5% 13.2% 11.6%

4.7%

0.1% -0.1%

Large Cap Growth

Large Cap Value

Small Cap Growth

Small Cap Value

International Stocks

Short Term Bonds

Intermediate Bonds

Model Portfolio Review All four model portfolios achieved gains for the quarter, ranging from 0.2% for Capital Maintenance to 5.5% for Growth. The greater the allocation to stocks, the higher the investment gain. Relative performance for the quarter was generally unfavorable with three of the four models underperforming their peer groups and composite indices. Longer term relative performance remains favorable. As indicated below, Foundation equity managers generally underperformed, whereas its fixed income managers generally outperformed. Details of the performance of the four models are shown below.

Asset Class Investment Results The Foundations performance this quarter for the three assets classes in which it invests, along with comparative benchmark returns, are shown in the following table.

Asset Class Common Stocks Fixed Income Cash Equivalents

Return 8.2% 0.6% 0.0%

Benchmark 11.0% -0.1% 0.0%

Account Status Total Foundation assets at quarter-end were $55 million, an increase of $2.3 million during the quarter. Investment gains totaled $2.6 million or 4.9%. At March 31st the Foundation had a total of 185 accounts as follows:

Ownership Churches/Schools Diocese

Number of Accounts 126 59

Amount 26.6 million 28.4 million

Portfolio Performance as of March 31, 2013*

Growth 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 5.52 (0.83) (1.24) 1 Yr 8.71 (0.72) (1.91) 3 Yr 8.78 0.50 (0.39) 5 Yr 5.48 0.78 0.13

Growth & Income 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 4.25 (0.57) (0.83) 1 Yr 7.57 (0.17) (0.86) 3 Yr 7.89 0.49 (0.17) 5 Yr 5.61 1.01 0.44

Income 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 3.38 (0.33) (0.41) 1 Yr 6.94 0.32 0.14 3 Yr 6.77 0.52 0.17 5 Yr 5.35 1.30 0.60

Capital Maintenance 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 0.20 0.06 0.15 1 Yr 2.37 0.86 1.39 3 Yr 1.97 0.39 0.56 5 Yr 2.50 0.81 0.83

* Returns for one year and greater than one year are annualized. Past performance does not guarantee future results.