The Episcopal Church Foundation in West Texas

Investment Program

March 31, 2017

Market Report

The US stock market Trump rally continued in the first quarter of 2017 with only
occasional retreats. By quarter-end, the market had delivered gains of 5.7% as measured by the
Russell 3000 index. International stocks, in a nice reversal from recent quarters, performed even
better with gains of 6.8%.

Large cap stocks outperformed small cap stocks by over 350 basis points and the growth
style outperformed the value style in both capitalization categories. Small cap value style stocks
sustained a small loss.

The US bond market enjoyed gains, although not as robust as the gains in common
stocks. As shown below, both short-term and intermediate-term bonds achieved positive results.

Market Returns for Quarter

8.9%

6.8%

5.4%

3.3%

0.8%
0.4%

-0.1%

Large Cap Large Cap Small Cap Small Cap International Short Term Intermediate
Growth Value Growth Value Stocks Bonds Bonds
Model Portfolio Review

All four of the Foundations investment strategies (represented by model portfolios)

achieved gains for the quarter. Performance relative to peer groups and to passive indices was
favorable for the quarter. Longer-term relative performance is mixed.

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 Return Benchmark

Common Stocks 7.5% 5.7%
Fixed Income 1.1% 0.8%
Cash Equivalents 0.05% 0.05%

Account Status

Foundation assets at quarter-end totaled $63.1 million, a decrease of $200 thousand

during the quarter. Investment gains were $2.9 million or 4.8%. One new account was opened
during the quarter, with initial deposits of $83 thousand. Two accounts were closed.

At March 31st, the Foundation had a total of 207 accounts as follows:

Ownership Number of Accounts Amount

Churches/Schools 151 $ 33.9 million
Diocese 56 29.2 million
 Portfolio Performance as of March 31, 2017*

Growth
3 Mo 1 Yr 3 Yr 5 Yr

Portfolio Total Return 5.13 10.65 4.00 7.15

+/- Peer Group Composite 0.31 (1.15) (1.09) (0.56)
+/- Index Composite 0.01 (3.13) (2.33) (1.59)

Growth & Income

3 Mo 1 Yr 3 Yr 5 Yr

Portfolio Total Return 4.21 9.32 4.05 6.27

+/- Peer Group Composite 0.34 (0.39) (0.45) (0.11)
+/- Index Composite 0.19 (1.54) (1.77) (1.06)

Income
3 Mo 1 Yr 3 Yr 5 Yr

Portfolio Total Return 3.18 7.91 3.84 5.24

+/- Peer Group Composite 0.26 0.18 0.04 0.16
+/- Index Composite 0.22 (0.43) (0.92) (0.47)

Capital Maintenance
3 Mo 1 Yr 3 Yr 5 Yr

Portfolio Total Return 0.40 1.27 0.78 0.82

+/- Peer Group Composite 0.00 0.13 0.13 0.08
+/- Index Composite 0.09 0.65 0.09 0.19

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