Episcopal Church Foundation in West Texas

quarterly report


 

   

Quarterly  Report

March 31, 2008

 

Market Report

           Deteriorating economic indicators, the continuing credit crisis, record levels of consumer debt, declining home values, and higher prices for gasoline and groceries, led to the worst quarter in the US stock market since the third quarter of 2002.  International stocks lost money also, even though the fundamentals were better off-shore.

           The broad stock market, as measured by the DJ Wilshire 5000 index returned -9.6% for the quarter.  As shown in the chart below, large capitalization stocks outperformed small stocks, but not by much. In a reversal of recent trends, the growth style underperformed the value style, although all categories and styles reported losses. 

            Fortunately, bonds enjoyed a good quarter.  Treasury securities had a particularly good quarter, reflecting a general investor concern about bonds—even investment grade corporate securities.  Bonds outperformed stocks by nearly 1200 basis points during the quarter.

          

            

 Market Returns for Quarter 


 

       
            

        

Model Portfolio Review

             Even though the Foundation’s managers generally performed better than the broad markets during the quarter, this was insufficient to prevent losses by three of the four model portfolios. 

             Because of the poor performance of equities during the quarter, the greater the allocation to equities in a model portfolio, the lower the return this quarter.  Performance of the models compared to their respective peer groups continues to be favorable.  Performance compared to passive indices is likewise favorable, generally. 

             In late September, 2007, the common stock exposure of the Growth Model was reduced from 76% to 69%.  In late March, we again reduced equity exposure in the Growth Model to 62%.  No changes were made to the other models.  In view of market action, the change made last year added value this quarter, the change made late in the first quarter had minimal effect, because of its timing.

              Details of the performance of the four models are shown below.

                                   

Asset Class Investment Results

            The Foundation’s 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

-9.9%

-9.6%

Fixed Income

3.3%

2.2%

Cash Equivalents

0.9%

0.7%

            

Account Status

            Total Foundation assets at quarter-end were $35.6 million, a decrease of $1.3 million during the quarter.  Investment losses totaled $1.9 million or -5.1%. Eight new accounts were adding during the quarter with initial deposits of $1.2 million.  At quarter-end the Foundation had a total of 125 accounts as follows:

 

Ownership

Number of Accounts

Amount

Churches/Schools

76

$   13.3 million

Diocese

49

     22.3 million

 

 

              

 

 

 

Portfolio Performance as of March 31, 2008*

 

Growth

 

 

 

 

 

 

3 Mo

1 Yr

3 Yr

5 Yr

 

 

 

 

 

Portfolio Total Return

(5.97)

2.28

7.91

   11.86

          +/- Peer Group Composite

0.05

5.24

2.91

1.84

                    +/- Index Composite

0.10

4.78

0.71

(0.23)

 

 

Growth & Income

 

 

 

 

 

 

3 Mo

1 Yr

3 Yr

5 Yr

 

 

 

 

 

Portfolio Total Return

(3.83)

3.56

6.86

9.34

          +/- Peer Group Composite

0.56

4.68

2.43

1.87

                    +/- Index Composite

0.18

3.63

0.56

0.07

 

 

 

Income

 

 

 

 

 

 

3 Mo

1 Yr

3 Yr

5 Yr

 

 

 

 

 

Portfolio Total Return

(1.87)

4.85

6.47

7.85

          +/-  Peer Group Composite

1.12

4.87

2.21

1.81

                    +/- Index Composite

0.51

3.02

0.59

0.32

 

 

Capital Maintenance

 

 

 

 

 

 

3 Mo

1 Yr

3 Yr

5 Yr

 

 

 

 

 

Portfolio Total Return

1.31

6.06

4.62

3.39

          +/-  Peer Group Composite

0.80

2.27

0.81

0.56

                     +/- Index Composite

(0.09)

0.34

(0.17)

(0.12)

 

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

 

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please download the PDF file below. 

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