Jewish Endowment & Foundation Investment Institute (JEFII) Access to Success Retooling CJP’s Investment Operations: A Case Study in Increasing SAT (Size, Access and Talent) JFNA 2015 Investment Institute February 2015 Alan Leifer, President Leifer Family Fund Founder of Boston’s Jewish Community Endowment Pool Immediate Past Chair of JFNA’s Investment Institute Alan@leifer.org www.leifer.org

JEFII’s Vision Our vision is for the world of Jewish philanthropy to define the standard of excellence in the governance and management of long-term capital. Jewish philanthropies, not Federations Governance and management, not investing Long-term capital; this isn’t about financial mgmt

Asset Allocation Manager Access Effective Execution Risk Management Increase SAT - The Virtuous Circle of Endowment & Foundation Management Asset Allocation Manager Access Effective Execution Risk Management Size Access Talent Ultimate Goal Gain Share of Jewish Wallet Strong Governance Increased Jewish Philanthropic Resources Superior Returns Effective Investment

Identify Barriers to Change and Develop Strategies to Overcome Them Obstacles CJP Old Status Quo (No SAT) JCEP Donor engagement strategy Too many conflicts Lack of expertise Low level of meeting time Fee driven Meddling versus monitoring Trusted fiduciary Transparent operations Superior access Best in class due diligence Client focussed Talented leadership

Today, One Policy Portfolio – 150+ Users $3 Billion Under Management Y/E 2014 Key Agencies’ Endowment Plans Beth Israel Deaconess Medical Center, CJP, +25 Agencies/Affiliates Boston Based Affiliated Organizations Broad Institute, Facing History and Ourselves + 25 Temples, 5 Schools Local Family Foundations and DAFs Leifer Family Fund, Private Foundation +65 Others National Jewish Federation Investment Program JAFI, Birmingham, Memphis, Indianapolis + 11 Others National Like-Minded Stakeholders Private Foundation, Out of Region Day Schools Defined Benefit Pension Plan CareGroup

A Strategic Review of CJP’s Investment Landscape In 1998 We Had: $50 million in a Hodgepodge of Assets Endowment, Supporting Foundation, DAF, Scheduled Assets Mediocre Performance 23 Member Committee 1 Investment Volunteer, 0 Investment Pros, 22 Major Donors 50 Jewish Institutions/Foundations With Sizable Assets Under Management in Boston Strong Relationship with Beth Israel Hospital

Develop Investment Philosophy Total Return Philosophy Balance Interest and Dividends with Long-Term Appreciation Use an Investment “View” to Avoid Asset Allocation Mistakes Willingness to be Contrarian and Spurn Fads Use of Alternative Investments Low Beta, High Alpha Carefully Monitor and Manage Liquidity Compound Returns by Reducing Risk

Rebrand and Relaunch Jewish Community Endowment Pool, LLP (JCEP) Launched as a Pro Bono Effort of Boston’s Jewish Money Manager’s Campaign Team in 1998 “Free” to Non-Profits, Low Cost to Family Foundations Cut and Rationalize Fees Word of Mouth Marketing – “A Coalition of the Willing” “Brand Name” Investment Committee Focus on One Pool

Affiliations for identification purposes only. Rebuild the Team CJP/Caregroup Board of Managers Current or Past Affiliations Daniel Jick, Chair HighVista Strategies Seth Klarman, Vice Chair Baupost Group Seth Alexander MIT Stephen Berger Adamas Partners Matthew Bottein Blackrock, Inc. Alicia Cooney Monument Group Lawrence Lasser Putnam Investments Alan Leifer Fidelity Investments R. Gregg Stone Kestrel Venture Partners Affiliations for identification purposes only.

Expand The Network CareGroup/JCEP Investors - $3 Billion as of December 31, 2014 Abraham Joshua Heschel School Adams Street Shul Alef-Bet Child Care Beth Israel Deaconess OB/GYN Foundation Beth Israel Deaconess Radiological Foundation Beth Israel Senior Citizens Housing, Inc. Camp Ramah of New England Camp Yavneh Cape Cod Synagogue CareGroup Investment Partnership CareGroup Pension Plan Chabad House of Harvard Square Cheder Menachem CJP Large Donor Advised Funds (64) CJP Endowment Cohen Hillel Academy Congregation Beth El of the Sudbury River Valley Congregation Beth Israel of Malden Congregation Mishkan Tefila Facing History & Ourselves Falmouth Jewish Congregation Frances Jacobson Early Childhood Center Gann Academy Harkham Hebrew Academy Hebrew College Hillel: The Foundation for Jewish Campus Life Jewish Agency for Israel Jewish Big Brother & Big Sister Association of Greater Boston Jewish Big Brother & Big Sister Association of Greater Boston Endowment Trust Jewish Community Center of the North Shore Jewish Community Centers of Greater Boston Jewish Community Housing for the Elderly Jewish Family & Children’s Service Jewish Family Service of Metrowest Jewish Federation of Greater Indianapolis, Inc. Jewish Federation of Greater Middlesex County Jewish Federation of Greater Pittsburgh Jewish Federation of Las Vegas Jewish Federation of New Hampshire Jewish Federation of Omaha Foundation Jewish Federation of Palm Springs and Desert Area Jewish Federation of Reading Jewish Foundation of Memphis Jewish Vocational Services, Inc. Jewish Women's Archives Maimonides School Mayyim Hayyim Living Waters Community Mikveh Memphis Jewish Federation MIT Hillel Private Family Foundations (2) Rashi School SAR Academy Sarasota-Manatee Jewish Federation Saval Charitable Trust Solomon Schechter Day School Synagogue Council of Massachusetts Temple Aliyah Temple Beth Avodah Temple Beth Avodah Endowment Trust Temple Beth Elohim Endowment Fund, Inc. Temple Beth Shalom Temple Beth Sholom Temple B’nai Abraham Temple Emanu-El Temple Emanuel Endowment Fund Temple Emanuel of Andover Temple Emunah Endowment Temple Isaiah of Lexington Temple Israel (Boston) Temple Israel of Natick Temple Israel of Sharon Temple Reyim Temple Shaare Tefilah (Norwood) Temple Shalom of Newton Temple Shir Tikva Temple Sinai Tidewater Jewish Foundation UJC of the Virginia Peninsula Endowment UJF of Greater Stamford, New Canaan and Darien Woodstock Area Jewish Community – Congregation Shir Shalom

Average Annualized Return (%) Be Transparent and Benchmark Against the Best JCEP Performance vs. The Cambridge Assoc. Elite 400 as of June 30, 2014 Average Annualized Return (%) 3 Years 5 Years 10 Years JCEP 7.6 9.7 8.1 Median 8.5 (n=419) 11.5 (n=409) 7.3 (n=368) Percentile 75th 91st 26th Sharpe Ratio 1.16 1.47 0.81 Percentile ranks are based on a scale of 0-100, where 0 is best and 100 is worst. Source: Cambridge Associates, LLC. Three, five and ten year returns are annualized and net of investment management and custodial fees.        

DIRECT BENEFITS (Increased SAT) Measure Outcomes DIRECT BENEFITS (Increased SAT) $300 Million Family Donor/Foundation 2014 Inflows $3 Million in DAF & Endowment Fund Fees Subsidizes Operations & Allocations $5 Million Budget for Full Investment Office 17 Dedicated FTEs. 120 BPS Value Added Annually over 10 Years. INDIRECT BENEFITS (Gain Share of Jewish Wallet) CJP Leadership Chair (Current and Elect) Overseas Chair Campaign Co-Chairs (2010,2012,2013, 2014, 2015)) Budget Chair (Current & Immediate Past) Young Adult Co-Chair Annual Campaign At Peak - $54 Million Money Managers Are Half Of $1 Million Annual Donors Money Managers’ Donations Rose From 2% To 41% Of Annual Campaign CJP Is Viewed As A Trusted Philanthropic Adviser To The Jewish Family Foundation Sector UN UN

RECAP: Steps to Increasing SAT A Strategic Review Develop Investment Philosophy Rebrand and Relaunch Rebuild the Team Expand the Network Be Transparent Benchmark Against the Best Measure Outcomes

Asset Allocation Manager Access Effective Execution Risk Management The Virtuous Circle of Endowment Management Asset Allocation Manager Access Effective Execution Risk Management Size Access Talent Ultimate Goal Gain Share of Jewish Wallet Strong Governance Increased Jewish Philanthropic Resources Superior Returns Effective Investment