Investment Summary as of December 31, 2015

2015 was a difficult year for investors. Weighing on the markets was speculation on if or when the Federal Reserve would raise rates (they finally did in December), significant declines in commodity/energy prices, a slowing Chinese economy, and a surging U.S. dollar that negatively impacts diversifying strategies to international stocks and bonds.   U.S. stocks in the S&P 500 Index finished up slightly at 1.4%. International developed market stocks in the MSCI EAFE Index were down 3.3%.

The Diversified Fund and Endowment Investment Fund declined 3.4% versus a benchmark loss of 1.7%. Inflation protection strategies related to commodities and inflation-linked bonds have under-performed the benchmark. The Funds’ allocations to global stocks and bonds have detracted from returns due to the continued weakness in foreign currencies relative to the U.S. dollar.

The Fixed Income Fund was off 1.9% versus a benchmark gain of 0.6%. Year-to-date under-performance is due to its global bond exposure mentioned above.

  Year Ended
December 31, 2015
  5 Years Ended
December 31, 2015
Diversified Fund (3.4%)   5.2%
Lipper Median* (1.7%)   5.4%
Over (Under) Performance (1.7%)   (0.2%)
       
Endowment Investment Fund (3.4%)   5.2%
Lipper Median* (1.7%)   5.4%
Over (Under) Performance (1.7%)   (0.2%)
       
Fixed Income Fund (1.9%)   3.2%
Barclays Capital Aggregate Bond Index 0.6%   3.3%
Over (Under) Performance (2.5%)   (0.1%)
       
* – Median returns from the Lipper mutual fund universe for balanced funds in the asset class category. As of 1/11/2016, the universe consisted of 5,016 peers. Source:   Wilshire Associates, Lipper, and Wespath
 
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.