Endowment Trustees Report to Council (Long-Term Investment Fund) 2008 - 09 CD#16.1 2008 – 09 EBD #13.6 (2008 – 09 Annual Conference) Endowment Trustees Report to Council (Long-Term Investment Fund) Dan Bradbury – Senior Trustee Sunday – July 12, 2009

Market Flash Points Current Bull market begins its run on March 9, 2009 The Dow turns positive for the first time this year on May 5, 2009 The transition from a Bear market to a Bull market has generally resulted in strong performance – see Exhibit #6 The month of April realized the one of the largest monthly gains in market history Emerging markets, particularly China and Brazil, are leading the global markets out of its malaise Is the current Bull run too strong for the market conditions that exist?

Market Valued vs. Book Value @ 6-30-09 Exhibit #1

Endowment Fund Manager Allocation & Style @ 6-30-09 Exhibit #2 $24,799,482

Performance – 6/30/09 (YTD Returns) Exhibit #3 Performance – 6/30/09 (YTD Returns) Managers Market Value YTD $ Change Mgr Return Benchmark Alliance Bernstein $ 3,475,819 $ 520,469 18.0% 3.2% Marsico $ 3,509,631 $ 174,417 5.7% 11.5% Blackrock $ 2,607,913 $ (37,485) (3.7%) (1.4%) NFJ/Allianz $ 1,006,032 $ ( 6,326) (0.1%) (5.2%) Lazard International $ 2,757,063 $ 18,997 1.1% 8.1% Heitman -REIT $ 746,257 $ (90,492) (9.6%) (12.9%) Invesco - REIT $ 656,648 $ 25,148 (3.6%) Blackrock SRI $ 185,483 $ 9,698 6.0% 5.5% Ariel SRI $ 173,799 $ 21,838 14.4% Lord Abbett - Convertibles $ 685,842 $ 54,342 10.6% 12.3% PIMCO $ 8,934,995 $ 530,249 6.9% 2.0% $ 24,799,482 $ 1,220,855 5.8% 3.7%

Asset Allocation Strategy Exhibit #4

The Tale of Two Quarters (Market Returns and Changes) Exhibit #5 The Tale of Two Quarters (Market Returns and Changes) Managers 3/6/09* 1st Quarter** 2nd Quarter*** Dow Jones -24.5% -13.3% -3.8% Wilshire 5000 -23.7% -10.7% 3.8% S&P 500 -24.3% -11.7% 1.8% NASDAQ -18.0% -3.1% 16.4% Russell 2000 -29.7% -15.4% ALA Endowment -9.7% -5.0% 5.8% FTSE 100 -20.4% -11.5% -4.2% Nikkei -19.0% -8.5% 12.4% Shanghai Composite 20.4% 30.3% 62.5% DJ Euro Stoxx -23.6% -14.0% 0.1% *Represents market low for year **YTD Return Period Ending 3-31-09 ***YTD Return Period Ending 6-30-09

Why Stay Fully Invested*? Exhibit #6 Market % Change from the Bottom Bottom 1 Mos 3 Mos 6 Mos 9 Mos 12 Mos 15 Mos 18 Mos 21 Mos 24 Mos 6/13/1949 7.2% 13.4% 21.8% 25.7% 40.1% 38.3% 41.6% 52.2% 54.7% 6/26/1962 8.2% 8.0% 21.6% 27.0% 32.3% 37.6% 41.9% 52.3% 55.1% 10/7/1966 7.8% 8.7% 14.7% 16.8% 24.8% 21.1% 16.3% 22.6% 28.5% 5/26/1970 9.0% 20.5% 22.7% 39.2% 43.6% 29.4% 46.2% 53.9% 12/6/1974 10.3% 31.9% 45.4% 44.7% 41.8% 68.4% 66.9% 71.2% 66.5% 2/28/1978 2.3% 12.1% 19.2% 8.4% 12.7% 11.9% 15.1% 8/12/1982 16.7% 33.9% 39.9% 56.3% 60.9% 49.4% 48.9% 56.8% 10/19/1987 11.4% 15.0% 20.6% 22.9% 28.8% 37.3% 48.6% 54.3% 10/11/1990 5.2% 5.8% 25.1% 26.2% 35.3% 40.8% 32.6% 3/22/2001 12.9% -12.3% 6.9% 11.1% -1.5% -15.0% -9.4% -9.2% 9/21/2001 11.8% 21.9% 27.3% 12.4% -3.0% 3.4% 3.5% 11.7% 17.1% 10/9/2002 17.2% 12.5% 32.9% 43.5% 43.3% 40.2% 38.0% Average 9.8% 20.9% 27.8% 32.7% 31.0% 36.4% 38.6% *As the table above illustrates, over the last 12 Bear markets the Dow has risen an average of 28.7% every three months as the market recovers Information Source – CNBC.com

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