The Episcopal Church Foundation in West Texas

Investment Program

March 31, 2016

Market Report
The US stock market began the New Year on a sour note, with broad market indices
falling in double-digit amounts in the first part of the quarter. Investors seemed to think that
conditions in China, the oil markets, and the outlook for corporate earnings in the US were all
problematic. As the quarter progressed, investors perceptions seemed to make a 180-degree
turn and by the end of the quarter most US stock market categories had recovered and achieved
modest gains.
As the chart below shows, large cap stocks performed better than small cap stocks and
the value style outperformed the growth style in both large and small cap categories.
International stocks continued to struggle, although the emerging markets sector achieved nice
gains.
Bond investors were attracted to US Treasuriesa perceived flight to qualitycausing
yields to decline and prices to increase. This had a positive effect on bonds generally, resulting
in nice gains for the quarter across the maturity spectrum.
Market Returns for Quarter

3.0%
1.7%

1.6%

1.0%

0.7%

-2.0%

-4.7%

Large Cap
Growth

Large Cap
Value

Small Cap
Growth

Small Cap
Value

International
Stocks

Short Term
Bonds

Intermediate
Bonds

Model Portfolio Review

Two of the Foundations four investment strategies (represented by model portfolios)
achieved modest gains for the quarter, with the two having the greatest exposure to equities
sustaining modest losses. Performance relative to peer groups and indices was generally
unfavorable for the quarter.
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
-2.6%
2.3%
0.0%

Benchmark
1.0%
3.0%
0.0%

Account Status
Foundation assets at quarter-end totaled $59.3 million, a decrease of $1 million during
the quarter. Investment losses were $531 thousand or -0.9%. Three new accounts were opened
during the quarter, with initial deposits totaling $108 thousand.
At March 31st, the Foundation had a total of 205 accounts as follows:
Ownership
Churches/Schools
Diocese

Number of Accounts
149
56

Amount
32.6 million
26.7 million

Portfolio Performance as of March 31, 2016*

Growth

Portfolio Total Return

+/- Peer Group Composite
+/- Index Composite

3 Mo

1 Yr

3 Yr

5 Yr

(0.98)
(1.17)
(1.99)

(3.84)
(1.41)
(1.93)

5.49
(0.33)
(1.01)

6.03
(0.03)
(0.93)

3 Mo

1 Yr

3 Yr

5 Yr

(0.45)
(1.05)
(1.81)

(2.47)
(0.65)
(2.18)

4.85
0.01
(0.96)

5.39
0.18
(0.77)

3 Mo

1 Yr

3 Yr

5 Yr

0.42
(0.59)
(1.17)

(1.26)
(0.19)
(1.46)

3.81
0.10
(0.67)

4.57
0.27
(0.43)

3 Mo

1 Yr

3 Yr

5 Yr

0.77
0.13
0.05

0.48
0.25
(0.11)

0.52
0.03
(0.09)

1.02
0.07
0.10

Growth & Income

Portfolio Total Return

+/- Peer Group Composite
+/- Index Composite

Income

Portfolio Total Return

+/- Peer Group Composite
+/- Index Composite

Capital Maintenance

Portfolio Total Return

+/- Peer Group Composite
+/- Index Composite

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