Equity Fund – Performance (Third Quarter 2008)
Objective:
The Colorado Episcopal Foundation Equity Fund is a pooled investment fund seeking long–term growth of capital. Income is a secondary consideration. The Fund invests primarily in publicly traded equity securities and mutual funds that focus on equity investments. It is the goal of the Fund to produce, over the long–term, a total return that exceeds the total return of the S&P 500 Index on a risk–adjusted basis and a minimum total return that exceeds the rate of inflation by seven percentage points.
Management:
The Colorado Episcopal Foundation Investment Committee has been established to assist the Foundation's Board of Trustees with overseeing the operation of the Equity Fund. The Investment Committee has six members and reports directly to the Board of Trustees. The Investment Committee, with the approval of the Board of Trustees, has invested the majority of the assets of the Equity Fund in seven different mutual funds. They are the Vanguard Institutional Index Fund, the Dodge – Cox Stock Fund, the Harbor Capital Appreciation Fund, the Columbia Acorn Fund, the Janus Mid Cap Value Fund, the Harbor International Fund, and the UMB Scout International Fund.
Investment Review:
The third quarter was not pleasant for the owners of equities around the world. Turmoil in the credit markets and its impact on many large financial firms like Lehman Brothers, Washington Mutual, American International Group and Merrill Lynch helped push stock prices dramatically lower. For the quarter the S&P 500 was down 8.4% on a total return basis. International stocks, as measured by the MSCI EAFE Index, were off 20.6 % for the quarter. While the Equity Fund has lagged its benchmark for the quarter, it continues to compare favorably to the S&P 500 over longer time periods. The Investment Committee continues to closely monitor the Fund to help ensure that it is well positioned to meet its objectives over the long term.
Performance:
| 2008 Third Quarter |
Average Annual Returns For Periods Ended 09–30–08 |
||||
| 1 Year | 3 Years | 5 Years | |||
| Equity Fund | –11.2% | –21.8% | 1.4% | 5.7% | |
| S&P 500 Index | –8.4% | –22.0% | 0.2% | 5.2% | |
| Consumer Price Index | 1.9% | 5.5% | 3.8% | 3.5% | |
Schedule of Net Assets:
| September 30, 2008 Market Value |
Percent of Net Assets |
|||
| Cash and Money Market Funds | $59,921.95 | 0.6% | ||
| Mutual Funds | ||||
| Large–Cap Funds | ||||
| Vanguard Institutional Index Fund | $4,070,188.52 | 41.1% | ||
| Dodge & Cox Stock Fund | $976,758.63 | 9.9% | ||
| Harbor Capital Appreciation Fund | $970,939.08 | 9.8 | ||
| Total Large–Cap Funds | $6,017,886.23 | 60.8% | ||
| Mid/Small–Cap Funds | ||||
| Columbia Acorn Fund | $996,417.71 | 10.1% | ||
| Janus Mid Cap Value Fund | $1,043,989.52 | 10.5% | ||
| Total Mid/Small–Cap Funds | $2,040,407.23 | 20.6% | ||
| International Funds | ||||
| Harbor International Fund | $885,792.35 | 8.9% | ||
| UMB Scout International Fund | $924,458.02 | 9.3% | ||
| Total International Funds | $1,810,240.37 | 18.2% | ||
| Total Mutual Funds | $9,868,533.83 | 99.6% | ||
| Accrued Income | $69.73 | 0.0% | ||
| Total Assets | $9,928,525.51 | 100.2% | ||
| Less Income Dividend Payable | (24,044.72) | (0.2) | ||
| Total Net Assets | $9,904,480.79 | 100.0% | ||