To the Board of Trustees Investment Committee Annual Update To the Board of Trustees March 23, 2017 Presented by: J. Fergus Shiel, Chair CSF Investment Committee

Background Summary CSF investment pool was separated from the Archdiocese of Boston Common Investment Fund in 2002. Investments managed by a group of high caliber, experienced investment professionals across diverse sectors who volunteer their time. Chair of CSF Board and Chair of the Finance Committee are ex-officio members of the Investment Committee Transactions and reporting are handled internally by CSF staff As of 2.28.17 the Investment Pool sits at $67.1M Introduce yourself and background and length of service on the committee Highlight the quality of the committee and let people know they are listed at the back.

Fund Objective Provide steady growth while ensuring capital preservation in order to serve the mission of the Catholic Schools Foundation. This goal is not to just beat the market, but it is about ensuring the resources are available over time. Committee is always concerned about ensuring adequate cash is available to meet the funding needs of the Foundation – first question of every meeting

Investment Asset Allocation As of 2.28.17 Asset allocation shifts based on market conditions and committee consensus. 3 years ago next slide

Asset Allocation Comparison 2.28.17 Asset Allocation is reviewed regularly and is responsive to market conditions Comparision from three years ago – overall decrease in equity position with decrease in US equity position, and slight increase in Int’l Bonds have decrease and an increase in cash

Equity Allocation as of February 28, 2017

Fixed Income Allocation as of February 28, 2017

Benchmarking The Investment Committee created the investment benchmark below to assist in evaluating the performance. Currently CSF is at 3.7% through 2.28 so slightly ahead of the benchmark Performance in line with budget with less risk Still feel heavy cash position is appropriate for fund objective and market conditions Being underweight bonds and focused on short duration is also appropriate at this time, but this is also has held back performance but good manager and sector selection has helped offset. Cash is

Benchmark and Performance Market Value Return Bench 12/31/2016 $64,642,554 6.84% 6.55% 12/31/2015 $61,606,820 -0.52% 0.60% 12/31/2014 $63,459,449 4.52% 7.50% 12/31/2013 $61,640,242 17.50% 17.30% 12/31/2012 $53,713,168 11.14% 10.3% 12/31/2011 $49,048,271 -0.90% 1.74% 12/31/2010 $50,038,546 14.28% 13.11% 12/31/2009 $43,893,111 27.43% 19.42% 12/31/2008 $34,900,636 -30.51% -24.07% 12/31/2007 $49,243,264 9.22% 6.14% 12/31/2006 $44,743,733 13.48% 11.69% 12/31/2005 $35,967,482 8.60% 4.12% 12/31/2004 $32,471,562 11.46% 8.62% 12/31/2003 $28,770,185 25.14% 19.73% 12/19/2002 $21,494,424 n/a   In 14 years fund has tripled due to performance During the crisis the fund dipped to $28M but has recovered well. CSF Investment performance has beat the benchmark in 10 of the last 14 years.

CSF Investment Committee Members Gerry Curtis, Senior Advisor Birch Hill Investment Advisors LLC John Fantozzi, Managing Director Park Street Capital Greg Fraser, Principal GRT Capital Partners, LLC Linda Lynch, Managing Director, Founder Fisher Lynch Capital Peter Lynch, Vice Chairman Fidelity Management & Research Co. Brendan McCarthy, Founding Partner Nyes Ledge Capital Steve Meier, EVP & Chief Investment Officer State Street Global Advisors Meg Reynolds, Principal & CEO Westwood Global Investments J. Fergus Shiel, (Chair) Portfolio manager Fidelity Investments Jack Sommers, President Income Research & Management Christine Komola, (Ex Officio) Chair, Finance Committee Bill Mosakowski, (Ex Officio) President, CSF Board Every member of the committee has over 25 years experience in the investment industry. 3 Members of the Committee are formerly with Cambridge Associates, the premiere advisor to endowments in the country. 7 of the 10 members are active money managers. Areas of expertise are: Equities, Emerging Markets, Hedge Funds, Private Equity, Commodities, Fixed-Income