Investment Summary as of December 31, 2014

Equity returns were mixed for 2014. Concerns about global economic growth, the health of emerging markets, and sharp declines in energy prices weighed on the markets. U.S. stocks in the S&P 500 Index still had a solid year gaining 13.7%. International stocks were under more pressure. Developed markets in the MSCI EAFE Index were down 7.4%. The Barclays Capital U.S. Aggregate Bond Index was up 6.0%.

The Diversified Fund and Endowment Investment Fund added 1.1% for the quarter and gained 3.5% year-to-date versus 5.5% for the benchmark. The International Equity portfolio under-performed its benchmark by 2.0% due to the portfolio’s underweight allocation to developed market value stocks. Value stocks out-performed growth stocks for the year. The U.S. Equity portfolio under-performed due to its higher-than-benchmark allocation to small- and mid-sized companies.

The Fixed Income Fund gained 0.4% for the quarter and ended the year up 4.2% versus 6.0% for the benchmark. Diversifying allocations to positive social purpose loans have added to performance while the fund’s allocation to international bonds has detracted from year-to-date performance due to the recent strengthening of the U.S. dollar.

Year-to-date
December 31, 2014
Trailing 3 Years
December 31, 2014
Diversified Fund 3.5% 10.4%
Benchmark* 5.5% 11.1%
Over (Under) Performance (2.0%)   (0.7%)
Endowment Investment Fund 3.5% 10.4%
Benchmark* 5.5% 11.1%
Over (Under) Performance (2.0%)   (0.7%)
Fixed Income Fund 4.2% 4.0%
Barclays Capital Aggregate Bond Index 6.0% 2.7%
Over (Under) Performance (1.8%)   1.3%
* – Blend of 1) Wespath benchmark of 40% Russell 3000 Index, 25% MSCI ACWI Index (excluding US), 25% Barclays Capital U.S. Universal Index (excluding mbs), 10% Barclays Capital U.S. Government Inflation-Linked Bond Index and 2) HFRI Fund of Funds Composite Index for actual percentage of alternatives
Notes: Historical returns are time-weighted and net of all fees.   Returns greater than one year are annualized. Past performance is no guarantee of future returns.