William C.

Conner Foundation

Educational Investment Fund

2016 Annual Report

Celebrating 44 Years of
The Educational Investment Fund

Setting the Standard of Excellence in

Investment Management Education, Experience,
Ethics, and Philanthropy since 1973
William C. Conner Foundation

Educational Investment Fund

M.J. Neeley School of Business

Texas Christian University
Fort Worth, TX

April 5, 2017

2
Table of Contents
Management Letter ....................................................................................................................... 4

History of the Educational Investment Fund ................................................................................ 6

EIF Members and Officer Pictures ............................................................................................... 7

Auditors Report ......................................................................................................................... 11

Financial Statements ................................................................................................................... 12

Notes to the Financial Statements ............................................................................................... 15

2016 Investment Transactions .................................................................................................... 16

Distributions................................................................................................................................ 18

Performance Graphs.................................................................................................................... 19

Asset and Sector Allocations ...................................................................................................... 20

Schedule of Investments ............................................................................................................. 21

Description of Holdings .............................................................................................................. 23

Fund Members ............................................................................................................................ 28

Board of Trustees ........................................................................................................................ 29

Preface

2016 marked the 44th year of operations of the Educational Investment Fund, during which time
the William C. Conner Foundation has provided students at Texas Christian University a unique
learning experience in fundamental security analysis and portfolio management. In 2016, 44
student analysts, 34 undergraduates and 10 MBA students, contributed to the management of the
Foundations assets. This report summarizes the activities and events that transpired in 2016.

3
 To the Trustees of the William C. Conner Foundation
Economy in Review
When looking back at the U.S. financial markets
and economy during 2016, what we see is a blanket
of uncertainty and changing expectations covering
a U.S. economy with relatively healthy
fundamentals. 2016 can be broken down into three
phases, each with different market dynamics and
investor focus.
The beginning of the year proved to be an
acceleration of late 2015 trends, with U.S. equity
markets falling in tandem with a sharp decline in
crude oil prices. These declines in the energy
market led to fears of economic slowdown in other
sectors, prompting general uncertainty about the
underlying economic fundamentals in the U.S. The
sluggish 0.8% first quarter real GDP growth rate
added fuel to the uncertainty fire, which manifested
itself additionally in declines in the U.S. dollar and
spikes in the VIX.
On February 11, crude oil bottomed at just under
$27 a barrel, and the market entered its second
phase, rebounding from its -10% beginning of year
decline. The early recovery was fueled by
aggressive U.S. rig count declines (-26% from
12/31/2015 to 2/19/2016), and, then, investor focus
shifted as the mid-March FOMC meeting addressed
fears of overly-aggressive monetary tightening.
Chair Yellens dovish tone in her press conference
instilled confidence that the economy could
continue to recover without any new roadblocks
from the FOMC, and the speech boosted already-
rising bond markets as well as equities.
Markets adjusted well to lower economic growth
expectations, continuing to rise alongside bond
markets into the summer. Continued uncertainty in
the global landscape, highlighted by the June 23
Brexit vote, drove 10-year treasury yields to their
all-time low of 1.36% in July, but markets remained
quiet as investors digested slightly upbeat economic
data and looked ahead to the fall election.
The third phase of the changing market and
economic landscape began after the election, when
expectations of a stronger macroeconomic
landscape solidified in the Trump agenda of tax
4
cuts, increased government spending, and
healthcare reform. Markedly stronger third and
fourth quarter GDP growth coupled with strong
PMI and sentiment indicators drove the S&P 500 up
5% from election to year-end, finishing the year up
11.95%. In December, the FOMC reacted to the
more inflationary and higher growth economic
landscape by raising the Federal Funds rate another
25 basis points, the second increase in ten years.
This third phase also signaled the end of the
longstanding bull market for bonds, with yields
increasing sharply post-election on the back of the
positive macroeconomic outlook.
Looking ahead, global economic trends likely will
be heavily impacted by populist movements
solidifying in the U.S. and across Europe,
highlighted by the June Brexit vote. The way
these movements play out will undoubtedly change
how multi-national U.S. companies do business and
how the 2000s globalism trend evolves moving
forward.
EIF Operating Summary
The EIF is a long-term equity-focused fund,
traditionally with about 70% invested in stocks. The
total EIF portfolio return for 2016 was 5.27%
compared to 7.21% for the Lipper Balanced Fund
Index, which is the average of the 30 largest
professionally managed balanced funds.
In 2016, the EIF equity allocation averaged 73.6%,
with total returns of 6.49% compared to 11.82% for
the S&P 500, 12.28% for the Lipper Large Cap
Core Index, and 5.26% for the Barclays Hedge
Fund Long Equity Index. The EIF fixed income
allocation averaged 19.3% with returns of 3.15%,
compared to 2.85% for the Lipper
short/intermediate bond index. The EIF bond
holdings were strategically allocated toward
shorter-term and higher-risk bonds as the EIF
looked to decrease interest rate risk while increasing
exposure to the improving macroeconomic
environment.
We are proud to distribute $65,798 to our
beneficiaries, Texas Christian University and the
Department of Ophthalmology at the Baylor
College of Medicine. The 2016 contribution marks
a milestone for the Fund, breaking the $3 million
mark cumulatively, and further emphasizes the
philanthropic component of the EIF. With the 2016
contribution, the cumulative distribution of the
William C. Conner Foundation Educational
Investment Fund is $3,037,019. All fund
members, past and present, take great pride in the
philanthropic component of the EIF.
Year Highlights
The EIF continues to be held in high regard both
locally and nationally. During 2016, nearly across
the board, EIF members were recognized on TCUs
Deans Honor List, and received numerous
scholarships, including the CFA Awareness &
Access Scholarships, Cowtown Angels Founding
Scholarship, Admire Family Accounting
Scholarship, Luther King Capital Management
Center for Financial Studies Scholarship, Meredith
Fraker Thompson Memorial Scholarship,
Mosebrook/Pfizer Student Leader, the Neeley
Scholarship, and the Bob Bolen Scholarship. In
addition, two EIF members took the first place prize
in a competition against Texas MBA programs in the
Association for Corporate Growth case study of
leveraged buyouts, mergers, and acquisitions. Also,
three EIF members won the Texas Investment
Portfolio Symposium, an investment management
competition that is a tribute to the quality and
prestige of the EIF. The teams brought home the
trophies which were on display in the EIF room
during 2016. In June 2017, seven EIF members plan
to take the CFA Level I exam, and three will be
taking the Level II CFA exam. EIF members also
served as mentors in the TCU High School Investor
Challenge Program offered by the Luther King
Capital Management Center for Financial Studies.
Many EIF members were successful in their search
for full-time employment. Some of the companies
hiring EIF members in 2016 include Goldman
5
Sachs, JPMorgan Chase, Citigroup, Lazard, Bank of
America Merrill Lynch, Robert W. Baird, and
Barclays.
Ending Comments
On behalf of all of the 2016 EIF members, I would
like to thank the William C. Conner family, the
Board of Trustees, the administration of Texas
Christian University, Jim Hille, auditor Dan
Meader, UBS, and all of our guests during the
course of the year. We also thank the Luther King
Capital Management Center for Financial Studies
and its Director, Dr. Joe Lipscomb, for their
continuing support of the students in the EIF.
We extend a special thank you to Dr. Larry
Lockwood as the EIF faculty advisor. Although the
operations of the fund are student managed, we
generate much of our success from the instruction
and support provided us by Dr. Lockwood. The
knowledge and experience that Dr. Lockwood
contributes to the Fund creates a lasting impact on
its members. We extend a special thank you to Dr.
Stan Block for his countless years of service to the
Fund and his lasting legacy at TCU. With their
combined wisdom they have built a program of
applied learning in financial markets that rivals any
other program in the country.
I am deeply honored and humbled to serve as the
Chief Administrator for the EIF this semester. On
behalf of all the 2016 members of the EIF, I would
like to say thank you for allowing us to take part in
this great opportunity.
With much appreciation,
Jared Cline
Chief Administrative Officer
William C. Conner Educational Investment Fund
Texas Christian University
 History of the Educational Investment Fund
The TCU Educational Investment Fund was
established in 1973 with a $600,000 donation from
William C. Conner, co-founder of Alcon
Laboratories. The donation consisted entirely of
Alcon Laboratories common stock, which was used
to establish the William C. Conner Foundation. The
five founding members, James Bowie, Gary Naifeh,
William McLaughlin, Ronald Moore, Roy Topham,
and faculty advisor Dr. Stan Block used the Alcon
stock to establish a margin account against which
the Fund could invest.
Within two months of the Funds founding, the
stock market experienced its biggest decline since
the end of World War II, providing the original five
members with a valuable lesson in the risks
associated with investing. The fact that the Fund
survived its early setbacks to become the success it
is today is a testament to the vision of Dr. Conner,
and the determination of its founders.
In 1978, Dr. Conner contributed an additional
$100,000 to the Fund, bringing its total value to
slightly more than $800,000. Through the
liquidation of its original holding, the EIF closed its
margin account and began investing directly in
various securities. Today, the fund has a value of
approximately $1.4 million.
In 1983, the manner of distributions to the
beneficiaries changed from an annual payment
equal to the realized profit for the year to an annual
distribution of 6% of the Funds year-end net asset
value. This change has allowed the EIF to grow,
while still providing income to its beneficiaries. In
2016, this distribution rate was lowered to 5%,
reflecting the continued mission of allowing the EIF
to grow in a lower-growth environment.
Although the EIF is not the oldest university fund in
existence, it is the oldest fund whose operations are
controlled entirely by student managers. Since its
inception, the Fund has represented an innovating,
challenging approach to education in finance. It has
allowed students to gain unparalleled investment
management experience while still in a university
setting. Throughout the history of the EIF, over $3
million has been distributed by the Fund, in the form
of an annual contribution to the William C. Conner
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Foundations two beneficiaries: Texas Christian
University and the Department of Ophthalmology
at Baylor College of Medicine.
Universities across the country continue to
recognize the benefits of TCUs student-run
investment fund. Over the past several years,
prestigious institutions such as UCLA, Rice
University, Columbia University, and the
University of Chicago have contacted TCU
regarding the development of their student-run
portfolio program, with many universities using
TCUs William C. Conner Educational Investment
Fund as the base model for their programs.
The future of the Educational Investment Fund
remains bright. The generous contribution made by
Dr. Conner 44 years ago has enabled over 1,000
students to benefit from this unique educational
experience. The program consistently produces
top-rate graduates who go on to achieve success
through various industries, but specifically in the
world of finance. The Fund is proud to keep good
relationships with its alumni and appreciates those
individuals who regularly return to Fort Worth to
share their professional experiences with current
Fund members. This solid network of alumni is
indicative of the quality experience provided by
participation in the TCU Educational Investment
Fund.
The success of the Educational Investment Fund has
been made possible by the vision and support of Dr.
Conner, the dedication of the William C. Conner
Board of Trustees, Dr. Stanley Block and Dr. Larry
Lockwood, as well as the numerous other TCU
faculty members, alumni, and students who have
donated their time and effort to the Fund.
Thank you for being a vital part of Texas Christian
University and the M.J. Neeley School of
Businesss Educational Investment Fund
experience. Your continued involvement with the
EIF ensures that past, present, and future alumni
will continue to be recognized for the superb
educational opportunities afforded by TCU.
 Educational Investment Fund Members

First Row (left to right): Larry Lockwood (faculty advisor), Son Le, Ashley Hull, Anna Pelch, Alex Sborov, Michael Marsh,
Anthony Micheli, Fabian Lima, Amenemope McKinney

Second Row (left to right): Aditya Padman, Courtney Aldridge, Jay Tufts, Mark Senter, Rachel Fikse, Jared Cline,
Steven Hood, Drew Atkins

Third Row (left to right): Emily Knuth, Nick Warren, Andrew Pogue, Ryan Knight, Abby Deutz, Zach Miller,
Cyrus Hamid-Khani, Stephen Arbuckle

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 Spring 2017 Officers

Left to right: Mark Senter (Portfolio Manager), Abby Deutz (Operations Manager),
Cyrus Hamid-Khani (Fund Accountant), Jared Cline (Chief Administrator), Anthony Micheli (Portfolio Manager),
Michael Marsh (Chief Economist)

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 Fall 2016 Officers

Left to right: Eric Mann (Operations Manager), Ryan Knight (Chief Administrator), Jared Cline (Fund Accountant),
Jay Tufts (Portfolio Manager), Drew Atkins (Portfolio Manager), Lucas Mann (Chief Economist)

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 Summer 2016 Officers

Left to right: Ryan Knight (Chief Economist), Son Le (Portfolio Manager), Aditya Padman (Portfolio Manager)
Not Pictured: Taylor Curtis (Chief Administrator), Tyler Hunt (Operations Manager)

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 DANIEL S. MEADER, CPA
925 SOUTH KIMBALL AVE SUITE 100
Southlake, Texas 76092
(817) 310-2901
Fax: (817) 310-2911

INDEPENDENT AUDITORS REPORT

To the Board of Trustees of

William C. Conner Foundation

We have audited the accompanying statements of financial position of the William C. Conner Foundation (a non-
profit organization) as of December 31, 2016 and December 31, 2015 and the related statements of activities and cash
flows for the year then ended. These financial statements are the responsibility of the Organizations management.
Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of the William C. Conner Foundation as of December 31, 2016 and December 31, 2015 and the results of its activities
and cash flows for the years then ended in conformity with generally accepted accounting principles.

Daniel S. Meader, CPA

Southlake, Texas
March 6, 2017

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STATEMENTS OF FINANCIAL POSITION

Year Ending December 31

2016 2015
ASSETS:
Investment income receivable 426 366
Investments, at market on 12/31
Cash 127,281 119,706
Short-term investments (cash equivalents)
Marketable equity securities 653,196 794,078
LP units
Closed End funds and ETFs 368,395 43,141
Mutual funds, bonds - 238,578
Allowance to adjust to market 167,074 152,909
Total investments and Income Receivable 1,316,372 1,348,778
Less restricted for support of beneficiaries 65,798 80,928
Total unrestricted investments 1,250,574 1,267,850

Temporarily restricted net assets 65,798 80,928

TOTAL ASSETS 1,316,372 1,348,778

LIABILITIES AND NET ASSETS:

Advances from TCU (98)
Net assets
Unrestricted 1,250,574 1,267,850
Temporarily restricted, for support of beneficiaries 65,798 80,928
Total net assets 1,316,372 1,348,778

TOTAL LIABILITIES AND NET ASSETS 1,316,274 1,348,778

The accompanying notes are an integral part of these statements.

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STATEMENTS OF ACTIVITIES

Year Ending December 31

2016 2015
UNRESTRICTED NET ASSETS
Revenue:
Interest 8 11
Dividends 26,280 26,490
Other Income
Total Revenue 26,288 26,502

Expenses:
Auditing expense 9,500 9,500
Printing and copying expense 1,733 2,911
Fiduciary fees and Commissions 150 150
Other operating expenses 514 318
Report and Meeting expense 1,919 4,829
Total Expenses 13,816 17,708

Excess of revenue over expense 12,472 8,794

NET GAINS (LOSSES) ON DISPOSITIONS & VALUATION OF INVESTMENTS

Realized 21,787 111,681
Unrealized 14,165 -106,360
Net gains (losses) on investments 35,952 5,321

Restrictions for support of beneficiaries -65,798 -80,928

Net increase (decrease) in unrestriced net assets -17,374 -66,813

Temporarily restricted net assets

Payments to beneficiaries -80,928 -85,153
Support for beneficiaries 65,798 80,928
Net increase (decrease) in temporarily restricted net assets -15,130 -4,225

Increase (decrease) in net assets -32,504 -71,038

Net assets, beginning of the year 1,348,778 1,419,816

NET ASSETS , END OF YEAR 1,316,274 1,348,778

The accompanying notes are an integral part of these statements.

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STATEMENTS OF CASH FLOWS

Year Ending December 31

2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Operating Income $ 12,616 $ 8,794
Adjustment to reconcile net increase (decrease) in operating activities
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in investment income receivable $ (60) $ 225
Purchase of Fixed Assets (computers)
Non-cash expenses and adjustments $ 284
Increase (decrease) in advance from TCU $ (98)
Net cash provided by (used in) operating activities $ 12,458 $ 9,303

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales or maturities of
Marketable equity securities 383,922 $ 465,856
Bond mutual funds 326,660 $ 68,535
Closed End funds or ETF's 209,265 $ 218,964

Payment for purchase of

Marketable equity securities (214,406) $ (404,131)
Corporate bonds or bond mutual funds (87,132) $ (46,590)
Closed End funds or ETFs (542,263) $ (217,151)
Net cash provided by (used in) investing activities $ 76,046 $ 85,481

CASH FLOWS FROM FINANCING ACTIVITIES:

CASH FLOWS FROM CONTRIBUTIONS:

DISBURSEMENTS TO BENEFICIARIES $ (80,928) $ (85,153)

Net cash provided by (used in) all activities $ 7,575 $ 9,631

NET INCREASE (DECREASE) IN CASH $ 7,575 $ 9,631

Cash, beginning of year $ 119,706 $ 110,075

CASH, END OF YEAR $ 127,281 $ 119,706

The accompanying notes are an integral part of these statements.

14
William C. Conner Foundation
Notes to Financial Statements
December 31, 2016

1. Organization and Summary of Significant Accounting Policies

The purpose of the William C. Conner Foundation, incorporated under the laws of the State of Texas, is to benefit
Texas Christian University of Fort Worth, Texas, and Baylor College of Medicine, Department of Ophthalmology, of
Houston, Texas. Pursuant to the 1982 amended articles of incorporation, the Foundation shall distribute an amount
equal to six percent of the net fair market value of all its investment assets at least annually in equal shares to Texas
Christian University and Baylor College of Medicine, Department of Ophthalmology. The distribution was amended
by the Foundation trustees to five percent beginning with the 2016 distribution.
The Foundation reports its results in accordance with Statement of Financial Accounting Standards (SFAS) No. 117,
Financial Statements of Not-For-Profit Organizations. Under SFAS No. 117, the Foundation is required to report
information regarding its financial position and activities according to three classes of net assets: unrestricted net
assets, temporarily restricted net assets, and permanently restricted net assets.
Investments:
Investments are presented in the financial statements in the aggregate at their cost. Unrealized gains and losses are
also set forth employing fair market value based on the last sales price on the last day of the period.
Realized and unrealized gains and losses are dispositions of investments and changes in market value are considered
elements of revenue and expense. Certain adjustments were made to unrealized gains this year to reflect a true-up of
certain items not recognized in previous years, including a stock split by Starbucks.
Administrative Policy:
TCU provides administrative support services to the Fund, and advances payments to vendors on behalf of the Fund.
TCU periodically receives reimbursements from the Fund for these advances. As TCU operates on a different fiscal
year than the fund, at any given time accounts between the Fund and the TCU business office may not be entirely
settled, but the amounts due to or due from are not material.
2. Taxes
The Internal Revenue Service has determined that the Foundation meets the requirements of the internal Revenue code
and is exempt from federal income tax under section 501(c)(3) and 509(a)(3). The Internal Revenue Service has also
determined that the Foundation will not be a private foundation subject to the provisions of the Internal revenue Code
Sections 507(a), (c) and (g) relating to the imposition of excise taxes on private foundation. Federal income taxes will
be imposed only on unrelated business income at the current corporate tax rates.

15
2016 Investment Transactions
Description Quantity Date Amount
Sales
VALERO ENERGY CORP (125) 01/29/2016 $8,073.35
VANGUARD LONG TERM TREAS-INV (1,117) 01/29/2016 14,306.70
VANGUARD S/T BND INDX-INV (3,858) 01/29/2016 40,547.58
ENERGY SELECT SECTOR SPDR (160) 01/29/2016 9,010.18
NEXTERA ENERGY INC (74) 02/19/2016 8,417.57
GILEAD SCIENCES INC (332) 02/24/2016 28,964.24
CALIFORNIA RESOURCES CORP (122) 03/2/2016 91.44
JARDEN CORP (633) 03/4/2016 35,171.20
LYONDELLBASELL INDU-CL A (233) 03/18/2016 20,674.31
CONSUMER STAPLES SPDR (705) 03/23/2016 36,787.25
UNITEDHEALTH GROUP INC (52) 04/7/2016 6,531.45
ALPHABET INC-CL C (8) 04/7/2016 5,844.30
AMERICAN EXPRESS CO (297) 04/13/2016 18,028.69
VANGUARD INTRM BND IDX-INV (2,705) 06/21/2016 31,729.65
VANGUARD GNMA FUND-INV (4,809) 06/21/2016 51,940.75
VANGUARD S/T INVEST GR-INV (6,980) 06/21/2016 74,899.09
VANGUARD S/T BND INDX-INV (4,499) 06/21/2016 47,594.97
ALTRIA GROUP INC (86) 07/13/2016 5,879.48
SIMON PROPERTY GROUP INC (27) 07/13/2016 5,921.34
MEDTRONIC PLC (88) 07/13/2016 7,769.54
LABORATORY CRP OF AMER HLDGS (51) 07/13/2016 6,943.84
FACEBOOK INC-A (40) 07/20/2016 4,807.04
VALERO ENERGY CORP (322) 07/20/2016 16,308.75
INTEL CORP (137) 07/20/2016 4,791.84
VANGUARD LONG-TERM CORP BOND (256) 09/9/2016 23,951.40
WELLS FARGO & CO (579) 09/28/2016 26,207.62
NIKE INC -CL B (472) 10/7/2016 24,686.45
CVS HEALTH CORP (275) 11/2/2016 22,926.00
FINANCIAL SELECT SECTOR SPDR (1,484) 11/4/2016 28,971.16
WEBSTER FINANCIAL CORP (153) 11/4/2016 6,044.73
COGNIZANT TECH SOLUTIONS-A (500) 11/9/2016 26,199.18
SPDR GOLD SHARES (404) 11/16/2016 47,280.80
VANGUARD INT-TERM CORPORATE (447) 11/16/2016 38,616.12
SIMON PROPERTY GROUP INC (50) 11/16/2016 9,139.10
NEXTERA ENERGY INC (56) 11/16/2016 6,400.35
INTEL CORP (934) 11/16/2016 32,488.34
HASBRO INC (124) 11/16/2016 10,511.43
VANGUARD INTRM BND IDX-INV (2,364) 11/16/2016 27,024.98
ENERGY SELECT SECTOR SPDR (388) 11/18/2016 27,438.22
DELTA AIR LINES INC (680) 12/2/2016 32,710.83
PUT S&P 500 ETF TR DUE 02/17/17 205.000 (22) 12/14/2016 1,751.71
SPDR GOLD SHARES (332) 12/16/2016 35,825.73

$919,208.70

16
 Description Quantity Date Amount
Purchases
KINDER MORGAN INC 1,047 01/29/2016 $16,430.33
VANGUARD INTRM BND IDX-INV 5,000 01/29/2016 57,325.00
CONSUMER STAPLES SPDR 705 02/3/2016 35,636.60
SIMON PROPERTY GROUP INC 159 02/19/2016 29,950.43
PEPSICO INC 309 03/23/2016 31,168.46
EMERSON ELECTRIC CO 235 04/13/2016 12,980.25
HASBRO INC 380 04/15/2016 30,956.85
VANGUARD INT-TERM CORPORATE 307 06/21/2016 27,145.85
VANGUARD LONG-TERM CORP BOND 256 06/21/2016 23,677.39
SPDR BBG BARC ST HIGH YIELD 271 06/21/2016 7,320.11
FLEXSHARES DISCIPLINED DURAT 2,335 06/21/2016 57,944.71
VANGUARD S/T CORP BOND ETF 948 06/21/2016 76,291.51
PRICELINE GROUP INC/THE 21 07/13/2016 28,291.22
ENERGY SELECT SECTOR SPDR 235 07/20/2016 16,248.87
SPDR GOLD SHARES 217 09/16/2016 27,139.02
FINANCIAL SELECT SECTOR SPDR 1,484 09/28/2016 28,696.45
ECOLAB INC 34 10/19/2016 4,032.57
CONSUMER STAPLES SPDR 118 11/4/2016 6,194.79
SPDR GOLD SHARES 294 11/4/2016 36,628.85
VISA INC-CLASS A SHARES 360 11/4/2016 29,089.25
SPDR GOLD SHARES 225 11/9/2016 28,034.00
ENERGY SELECT SECTOR SPDR 153 11/16/2016 11,038.97
SPDR S&P 500 ETF TRUST 444 11/16/2016 96,694.96
FINANCIAL SELECT SECTOR SPDR 2,096 11/16/2016 46,102.27
TECHNOLOGY SELECT SECT SPDR 386 11/16/2016 18,069.48
MATRIX SERVICE CO 1,390 11/18/2016 27,362.80
INDUSTRIAL SELECT SECT SPDR 421 12/2/2016 26,594.57
PUT S&P 500 ETF 02/17/17 216.000 22 12/14/2016 4,144.25

$841,189.81

17
Distributions
Each year, the Foundation distributes a portion of its ending net asset value as of December 31 year end to its
beneficiaries, Texas Christian University and the Department of Ophthalmology at the Baylor College of Medicine.
Beginning with the 2005 distribution, proceeds to TCU were paid to the General Fund and the Finance Department.
The distribution percentage was changed from 6% to 5% beginning with the 2016 distribution. The payment history
is detailed below:

TCU - General TCU Finance Cumulative

Year Baylor Total Payout
Fund Dept. Payout
Prior $227,924 $227,924 $455,848 $455,848
1985 31,512 31,512 63,024 518,872
1986 36,988 36,988 73,976 592,848
1987 34,453 34,453 68,906 661,754
1988 35,178 35,178 70,356 732,110
1989 36,728 36,728 73,456 805,566
1990 33,690 33,690 67,380 872,946
1991 37,447 37,447 74,894 947,840
1992 37,364 37,364 74,728 1,022,568
1993 38,870 38,870 77,740 1,100,308
1994 34,532 34,532 69,064 1,169,372
1995 38,998 38,998 77,996 1,247,368
1996 41,819 41,819 83,638 1,331,006
1997 47,985 47,985 95,970 1,426,976
1998 51,280 51,280 102,560 1,529,536
1999 56,224 56,224 112,448 1,641,984
2000 53,905 53,905 107,810 1,749,794
2001 47,754 47,754 95,508 1,845,302
2002 38,892 38,892 77,784 1,923,086
2003 47,622 47,622 95,244 2,018,330
2004 45,616 45,616 91,232 2,109,562
2005 22,352 22,352 44,704 89,408 2,198,970
2006 22,486 22,486 44,972 89,944 2,288,914
2007 22,762 22,762 45,524 91,048 2,379,962
2008 14,575 14,575 29,150 58,300 2,438,262
2009 16,590 16,590 33,180 66,360 2,504,622
2010 17,932 17,932 35,865 71,729 2,576,351
2011 17,360 17,360 34,721 69,441 2,645,792
2012 18,552 18,552 37,104 74,208 2,720,000
2013 21,285 21,285 42,570 85,140 2,805,140
2014 21,288 21,288 42,577 85,153 2,890,293
2015 20,232 20,232 40,464 80,928 2,971,221
2016 13,160 19,739 32,899 65,798 3,037,019

Cumulative Distributions
$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Prior

18
 Cumulative EIF 2016 Performance versus Fund Benchmarks
Total EIF vs. Balanced Indexes
10.0%
8.62%
Cumulative Returns

8.0%
7.21%
6.0% 5.27%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
EIF Total Vanguard Lipper

EIF Equities vs. Stock Indexes

15.0%
12.28%
Cumulative Returns

10.0% 11.82%

6.49%
5.0% 5.26%

0.0%

-5.0%

-10.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
EIF Equities S&P500 Lipper Large Cap Core Barclay's Hedge Fund Long Equity

EIF Bonds vs. Bond Indexes

6.0%
Cumulative Returns

5.0%

4.0%
3.15%
3.0%
2.85%
2.0% 2.08%

1.0%

0.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

EIF Bonds Lipper short/int Barclay's Int

19
 EIF Equities Sector Allocation (as of 12/31/2016)
Real Estate 2% Telecomm. 0% Utilities 3%
Materials Consumer
3% Discretionary 12%

Consumer
Information
Staples 8%
Technology 22%

Energy 7%

Industrials 12%
Financials 17%

Health
Care 14%

2016 EIF Asset Allocation

100% 0.00% 0.00% 0.00% 2.85%

80%

71.99% 74.10% 73.57%

60% 77.45%

40%

20% 20.92% 21.79% 20.32%

13.15%
7.09% 4.11% 6.11% 6.54%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cash Fixed Income Equity Commodities

20
 Schedule of Investments

Market Value Equity % as of Total % as of

Asset Class: Equity Shares 12/31/2016 12/31/2016 12/31/2016

Consumer Discretionary
Delphi Automotive PLC 402 $27,074.70 2.67% 2.06%
Starbucks Corp 537 $29,814.24 2.94% 2.27%
Priceline Group 21 $30,787.26 3.03% 2.34%
Hasbro Inc. 256 $19,914.24 1.96% 1.51%
$107,590.44 10.60% 8.18%

Consumer Staples
Altria Group Inc. 465 $31,443.30 3.10% 2.39%
PepsiCo Inc. 309 $32,330.67 3.19% 2.46%
XLP Consumer Staples SPDR 118 $6,101.78 0.60% 0.46%
$69,875.75 6.89% 5.31%

Energy
Kinder Morgan 1,743 $36,097.53 3.56% 2.74%
Matrix Service 1,390 $31,553.00 3.11% 2.40%
$67,650.53 6.67% 5.14%

Financials
American International Group Inc. 525 $34,287.75 3.38% 2.61%
Berkshire Hathaway Inc. 236 $38,463.28 3.79% 2.92%
XLF Financials SPDR 2096 $48,732.00 4.80% 3.70%
Webster Financial Corp 711 $38,593.08 3.80% 2.93%
$160,076.11 15.77% 12.16%

Health Care
Amgen Inc. 223 $32,604.83 3.21% 2.48%
Laboratory Corp 233 $29,912.54 2.95% 2.27%
Medtronic Plc 360 $25,642.80 2.53% 1.95%
UnitedHealth Group 241 $38,569.64 3.80% 2.93%
$126,729.81 12.49% 9.63%

Industrials
Boeing 210 $32,692.80 3.22% 2.48%
Emerson Electric 505 $28,153.75 2.77% 2.14%
Union Pacific Group 259 $26,853.12 2.65% 2.04%
XLI Industrials SPDR 421 $26,194.62 2.58% 1.99%
$113,894.29 11.22% 8.65%

Information Technology
Apple Inc. 278 $32,197.96 3.17% 2.45%

21
Cisco Systems 1056 $31,912.32 3.14% 2.43%
Facebook 271 $31,178.55 3.07% 2.37%
Google Inc. Class C 40 $30,872.80 3.04% 2.35%
Oracle Corp 815 $31,336.75 3.09% 2.38%
Visa Inc. 360 $28,087.20 2.77% 2.13%
XLK Information Technology SPDR 386 $18,666.96 1.84% 1.42%
$204,252.54 20.13% 15.52%

Materials
Ecolab Inc. 231 $27,077.82 2.67% 2.06%
$27,077.82 2.67% 2.06%

Real Estate
Simon Property Group Inc. 82 $14,568.94 1.44% 1.11%
$14,568.94 1.44% 1.11%

Utilities
Nextera Energy Inc. 200 $23,892.00 2.35% 1.82%
$23,892.00 2.35% 1.82%

Other
S&P 500 SPDR 444 $99,247.32 9.78% 7.54%
$99,247.32 9.78% 7.54%

Total Equity Value $1,014,855.55 100.00% 77.12%

$915,608.23

Fixed Inc. % as
Market Value Total % as of
of
Asset Class: Fixed Income Shares 12/31/2016 12/31/2016 12/31/2016
Flexshares Disciplined Durat ETF 2,335 $56,366.90 32.95% 4.28%
Bloomberg Barclays Short Term High Yield Bond
1,426 $39,471.68 23.07% 3.00%
ETF
Vanguard Short-Term Corporate Bond ETF 948 $75,242.76 43.98% 5.72%

Total Fixed Income Value $171,081.34 100.00% 13.00%

Market Value Options % as of Total % as of

Asset Class: Options Shares 12/31/2016 12/31/2016 12/31/2016
Put SPDR S&P 500 ETF TR DUE 02/17/17 22 $4,389.00 161% 0.33%
Put SPDR S&P 500 ETF TR DUE 02/17/17 (22) ($1,661.00) -61% -0.13%

$2,728.00 100.00% 0.21%

Market Value Cash % as of Total % as of

Asset Class: Cash 12/31/2016 12/31/2016 12/31/2016
Cash & Money Balances $127,281.02 100% 9.67%

Total Portfolio Value $1,315,945.91

22
 Description of Individual Equity Holdings as of December 31, 2016
(all return comparisons are holding period specific)

CONSUMER DISCRETIONARY

Delphi Automotive (DLPH): Delphi Automotive PLC manufactures vehicle components. The
company produces electrical and electronic, powertrain, safety and thermal technology
components for automobile and commercial vehicle manufacturers. Delphi supplies original
equipment manufacturers throughout the world. Delphi has a market cap of $18.17B and returned
-20.1% for the EIF in 2016, underperforming the S&P 500 by 32.0%.
Hasbro, Inc. (HAS): Hasbro, Inc. designs, manufactures, and markets toys, games, interactive
software, puzzles, and infant products internationally. The Company's products include a variety
of games, including traditional board, card, handheld electronic, trading card, role-playing, and
DVD games. Brands include: G.I. Joe; Monopoly; My Little Pony; Nerf; Play-Doh; and
Transformers. Hasbro also engages in partnerships and licenses with brands such as Marvel and
Walt Disney. Hasbro has a market cap of $9.75B and returned -0.6% for the EIF in 2016,
underperforming the S&P 500 by 10.7%.
Priceline (PCLN): Priceline operates through its merchant model online booking service,
Priceline.com. The Company is a provider of travel and restaurant reservation and related services.
Through its online travel companies, the firm connects consumers wishing to make travel
reservations around the world. Priceline owns Booking.com, Kayak, and OpenTable, among
others. Priceline has a market cap of $72.11B and returned 9.5% for the EIF in 2016, outperforming
the S&P 500 by 4.5%.
Starbucks (SBUX): Starbucks Corporation retails, roasts, and provides its own brands of specialty
coffee. The Company operates retail locations worldwide and sells whole bean coffees through its
sales group, direct response business, supermarkets, and online. Starbucks also produces and sells
bottled coffee drinks, teas, and a line of ice creams. Starbucks has a market cap of $80.90B and
returned -6.1% for the EIF in 2016, underperforming the S&P 500 by 18.1%.

CONSUMER STAPLES

Altria Group Inc. (MO): The Altria Group manufactures tobacco and wine products. The
company offers a diverse range of blended wines under the Chateau St. Michelle and Columbia
Crest names. The company also maintains a portfolio of leases in rail transport, aircraft, real estate
and electric power assets. Altria sells its products to restaurants, wholesale clubs, supermarkets,
wine shops, mass merchandisers, and other retailers worldwide. Altria has a market cap of
$131.40B and returned 20.5% for the EIF in 2016, outperforming the S&P 500 by 8.5%.
PepsiCo (PEP): PepsiCo is a leading global food and beverage company with a strong portfolio
of brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana. Through PepsiCos
operations, authorized bottlers, contract manufacturers, and other third parties, the company serves
customers in more than 200 countries and territories. PepsiCo has a market cap of $149.41B and
returned 6.1% for the EIF in 2016, underperforming the S&P 500 by 5.7%.

23
ENERGY
Kinder Morgan (KMI): Kinder Morgan is a pipeline transportation and energy storage company.
The pipelines transport natural gas, crude oil, gasoline, carbon dioxide, and other products, and its
terminals store petroleum and chemical products. Kinder Morgan has a market cap of $46.19B and
returned 42.7% for the EIF in 2016, outperforming the S&P 500 by 30.7%.
Matrix Service Company (MTRX): Through its subsidiaries, Matrix provides engineering,
procurement, fabrication and construction, maintenance and industrial cleaning services to the
Energy, Power, and Industrial markets. Matrix is also known as a leader in aboveground storage
tanks and specialty vessels for the petroleum and water storage industries. Matrix has a market cap
of $603.6M and returned 15.5% for the EIF in 2016, outperforming the S&P 500 by 12.7%.

FINANCIALS
American International Group (AIG): American International Group, Inc. is an international
insurance organization serving commercial, institutional and individual customers. AIG provides
property-casualty insurance, life insurance and retirement services. Some of these services include
general liability, automobile, workers compensation, health insurance, and term life insurance.
AIG has a market cap of $65.0B and returned 7.8% for EIF in 2016, underperforming the S&P
500 by 4.2%.
Berkshire Hathaway Inc. Class B (BRK.B): Berkshire Hathaway is a holding company that
wholly and partially owns subsidiaries across many different industries, with insurance and
reinsurance serving as its primary operational segments. The company also owns and operates a
number of other businesses engaged in a variety of activities. Berkshire has a market cap of
$401.33B and returned 23.4% for the EIF in 2016, outperforming the S&P 500 by 11.5%.
Webster Financial (WBS): Webster Bank delivers financial services to individuals, families, and
businesses primarily in the Northeast U.S. Webster provides commercial, small business, and
consumer banking, mortgage lending, financial planning, and trust and investment services
through 169 banking centers, 309 ATMs, telephone banking, mobile banking, and its website.
Webster also offers equipment financing, commercial real estate lending, and asset-based lending.
Webster Financial has a market cap of $4.98B and returned 50.0% for the EIF in 2016,
outperforming the S&P 500 by 38.0%.

HEALTHCARE

Amgen Inc. (AMGN): Amgen focuses on areas of unmet medical needs and leverages its
biologics manufacturing expertise to strive for solutions that improve health outcomes and
dramatically improve peoples lives. A biotechnology pioneer since 1980, Amgen has grown to be
the worlds largest independent biotechnology company, has reached millions of patients around
the world and is developing a pipeline of medicines with breakaway potential. Amgen has a market
cap of $107.93B and returned -7.5% for the EIF in 2016, underperforming the S&P 500 by 19.5%.
Laboratory Corporation of America Holdings (LH): Laboratory Corporation of American
Holdings (LapCorp) operates within the diagnostic and medical laboratories industry. They are the

24
second largest company in the industry and are classified as an independent laboratory. LabCorp
traditionally generates revenue through generic and specialty medical tests and clinical trials. In
November 2014, LabCorp announced the $6.2 billion purchase of Covance, a contract research
organization. Covance focuses on research on research on early and late-stage drug development.
LabCorp has a market cap of $13.18B and returned 3.8% for the EIF in 2016, underperforming
the S&P 500 by 8.1%.
Medtronic (MDT): Medtronic Plc, headquartered in Dublin, Ireland, is a global leader in medical
technology alleviating pain, restoring health, and extending life for millions of people around
the world. MDT serves hospitals, physicians, clinicians, and patients in approximately 160
countries worldwide. MDT currently functions in four operating segments that primarily
manufacture and sell device based medical therapies. Medtronic has a market cap of $102.60B and
returned -5.4% for the EIF in 2016, underperforming the S&P 500 by 17.4%.
UnitedHealth Group Inc. (UNH): UnitedHealth group Inc. is the largest diversified health and
well-being company in the United States. The company actively works to help people choose
healthier lifestyles and improve the overall health system. The company aids its clients and
provides health benefits to Employer and individual, Medicare and Retirement, Community and
State, and International. Optum is a health services business serving those who need, provide, and
pay for care which includes OptumHealth, OptumInsight, and OptumRx. UNH has a market cap
of $152.36B and returned 38.4% for the EIF, outperforming the S&P 500 by 26.5%.

INDUSTRIALS
The Boeing Company (BA): The Boeing Company is the worlds largest manufacturer of
aerospace and defense products and services. The primary focus in the leasing, servicing, and sales
of commercial jetliners. The firm is also a major player in the defense, space, and security services.
Boeing supports its products with financing through Boeing Capital. Boeing has a market cap
$96.08B and returned 11.3% for the EIF since 2016, underperforming the S&P 500 by 0.6%.
Union Pacific Corp. (UNP): Union Pacific Corporation is a rail transportation company. The
Companys railroad hauls a variety of goods, including agricultural, automotive, and chemical
products. Union Pacific offers long-haul routes from all major West Coast and Gulf Coast ports to
eastern gateways as well as connects with Canadas rail systems and serves the major gateways to
Mexico. Union Pacific has a market cap of $84.58B and returned 36.0% for the EIF in 2016,
outperforming the S&P 500 by 24.0%.
Emerson Electric Co. (EMR): Emerson Electric is engaged in offering technology and
engineering together that provides solutions for customers in industrial, commercial, and consumer
markets around the world. It operates in five main segments: Process Management, Industrial
Automation, Network Power, Climate Technologies, and Commercial and Residential Services.
Emerson Electric has a market cap of $35.94B and returned 21.0% for the EIF in 2016,
outperforming the S&P 500 by 9.1%.

25
MATERIALS
Ecolab Inc. (ECL): Ecolab Inc. develops and markets products and services for the hospitality,
institutional, and industrial markets. The Company provides cleaning, sanitizing, pest elimination,
and maintenance products, systems, and services. Ecolab provides its services to hotels and
restaurants, healthcare and educational facilities, light industry, and other customers located
worldwide. Ecolab has a market cap of $34.30B and returned 3.7% for the EIF in 2016,
underperforming the S&P 500 by 8.2%.

REAL ESTATE
Simon Property Group (SPG): Simon Property Group is the nation's largest shopping mall and
retail center owner, with a portfolio of more than 225 retail properties totaling approximately 189
million sq. ft. of leasable space across more than 35 states and Puerto Rico. The self-managed,
self-administered real estate investment trust (REIT) owns, develops, and manages regional
shopping malls, outlet malls, boutique malls, and shopping centers. Its portfolio is concentrated in
the US's Southeast, Midwest, and Northeast. Simon Property Group has a market cap of $55.62B
and returned -3.9% for the EIF in 2016, underperforming the S&P 500 by 22.8%.

TECHNOLOGY
Alphabet Inc. Class C (GOOG): Alphabet Inc. is a global technology company that provides
a web-based search engine through its website, among many other services. The Company offers
a wide range of search options, including web, image, groups, directory, and news searches.
Alphabet has a market cap of $547.82B and returned 1.7% for the EIF in 2016, underperforming
the S&P 500 by 10.2%.
Apple Inc. (AAPL): Apple Inc. sells products and services including iPhone, iPad, Mac, iPod,
Apple TV, the iOS and Mac X operating systems, iCloud, and various accessory and support
offerings. It also sells and delivers digital content and applications through the iTunes Store, App
Store, iBookstore, and Mac App Store. It also operates retail stores both nationally and
internationally. Apple has a market cap of $618.03B and returned 12.5% for the EIF in 2016,
outperforming the S&P 500 by 0.5%.
Facebook (FB): Facebook is a social media company founded in 2014, with the mission to give
people the power to share and make the world more open and connected. Facebook currently
generates approximately all its revenue through advertising and fees. Facebook products include:
Facebook, Instagram, WhatsApp, Messenger, and Oculus Rift. Facebook has a market cap of
$332.72B and returned 9.9% for the EIF in 2016, underperforming the S&P 500 by 2.0%.
Cisco System, Inc. (CSCO): Cisco System, Inc. (Cisco) designs and sells lines of products,
provides services and delivers integrated solutions to develop and connect networks around the
world, boiling the Internet. The company is engaged in designing, manufacturing and selling
Internet Protocol (IP)-based networking and other products related to the communications and
information technology (IT) industry, and provides services associated with these products and

26
their use. Cisco has a market cap of $155.12B and returned 15.2% for the EIF in 2016,
outperforming the S&P 500 by 3.30%.
Visa Inc. (V): Visa is a global payments technology company which facilitates global commerce
by connecting consumers, businesses, financial institutions, and governments to fast, secure,
reliable electronic payments. Visa provides clients with a global payments infrastructure and
support services for the delivery for Visa-branded payment products. Visa has a market cap of
$181.08B and returned -2.7% for the EIF in 2016, underperforming the S&P 500 by 10.5%.
Oracle Corp (ORCL): Oracle Corp was established in 1977. It is a leader in database software.
In addition it also develops middleware software, application software and hardware systems
worldwide. With Sun Microsystems acquisition, Java is also part of Oracle now. It generates its
revenues mainly by issuing new software licenses, updates and product support. Oracle Corp has
a market cap of $164.90B and returned 6.9% for the EIF in 2016, underperforming the S&P 500
by 5.1%.

UTILITIES

NextEra Energy Inc. (NEE): NextEra Energy, Inc. is a clean energy company. The Company,
through its subsidiaries, generates, transmits, distributes, and sells electric energy utilizing natural
gas, wind and nuclear resources. NextEra Energy has a market cap of $55.91B and returned 18.4%
for the EIF in 2016, outperforming the S&P 500 by 6.5%.

27
 Educational Investment Fund Members

Spring 2016 Fall 2016

Cameron Mitchell Chief Administrator Ryan Knight Chief Administrator
Bret Hildebrandt Portfolio Manager Drew Atkins Portfolio Manager
Pat Hollinger Portfolio Manager Jay Tufts Portfolio Manager
Stephen Levy Chief Economist Lucas Mann Chief Economist
Claire Groves Fund Accountant Jared Cline Fund Accountant
Christine Anding Operations Manager Eric Mann Operations Manager
Annie Maguire IT/Marketing Courtney Aldridge
Tori Bertschy Stephen Arbuckle
Patrick Browning Abby Deutz
Michael Byron Cyrus Hamid-Khani
Nikki Carmody Ashley Hull
Nick Clarke Emily Knuth
Taylor Curtis Michael Marsh
Kelli Denton Anthony Micheli
Tyler Hunt Zach Miller
Son Le Anna Pelch
Aditya Padman Hutson Prioleau
Guillermo Patino Alex Sborov
Blake Tilley Mark Senter Jr.
Gian Turco
Hung Vu

Summer 2016 Faculty Advisor

Taylor Curtis Chief Administrator Dr. Larry Lockwood
Collin Geninatti Portfolio Manager For further information about the Educational
Son Le Portfolio Manager Investment Fund, please contact:
Aditya Padman Portfolio Manager Educational Investment Fund
Ryan Knight Chief Economist TCU Box 298530
Tyler Hunt Operations Manager Fort Worth, TX 76129
Drew Atkins Phone: 817-257-7568
Eric Mann Fax: 817-257-7227
Lucas Mann
Tung Nguyen
Eric Shockley
Ryker Thompson
Jay Tufts IV
Wenhui Xu

28
 William C. Conner Foundation

Board of Trustees

Dr. O. Homer Erekson

Dean and John V. Roach Chair in Business
M.J. Neeley School of Business
Fort Worth, Texas

Jim Hille
Chief Investment Officer
Texas Christian University
Fort Worth, Texas

Halden Conner
Investments
Fort Worth, Texas

Scot Hollmann
Principal, Vice President
Luther King Capital Management
Fort Worth, Texas

Dr. Timothy Stout

Director, Cullen Eye Institute
Chairman, Department of Ophthalmology
Baylor College of Medicine
Houston, Texas

29