Oklahoma State Regents Presented on September 27, 2006 by Michael H. Strauss, Chief Economist and Chief Operating Officer of Commonfund Asset Management Company Crissie L. Tewell, Managing Director IMPORTANT NOTE: All library material is in Commonfund’s standard look (Its corporate identity). Therefore, please do not change font styles or sizes on cover page. Also please do not add “th” or “rd” to the date (i.e. June 27 th, 2006). In addition entity names (i.e. Commonfund Securities, Inc.) should not be added to name and title. If it’s added it will be deleted (Note: exception President of Commonfund, President of CCI). Thank you for your cooperation. (Please delete this note after it’s read)

Oklahoma State Regents 2 Why Invest with Commonfund To improve investment management practices and to enhance the financial resources of the nonprofit community STRONG FINANCIAL RESOURCES SERVICE EDUCATIONAL PROGRAMS PERFORMANCE COMMONFUND MISSION The Pillars That Support Our Mission

Oklahoma State Regents 3 A History of Innovation Commonfund has a History of Providing Programs Across a Broad Range of Asset Classes 1 Hedge strategies first used as diversifier in Commonfund equity portfolio 2 Distressed debt first used as diversifier in Commonfund Multi-Strategy Bond Fund. 3 This service existed as the Endowment Planning Model since U.S. Equities1971 Cash (Short Term Fund)1974 Fixed Income1976 Hedged Equity International Equities1983 Real Estate1988 Private Capital1988 Distressed Debt Absolute Return Strategies1991 Commonfund StrategicSolutions ® 2001 Allocation Planning Model TM Commodities2005 Program Initiated

Oklahoma State Regents 4 Education and Best Practices A Commitment to Professional Development and the Sharing of Best Practices Commonfund Benchmarks Study ® Series Endowment Institute Regional Roundtables and Seminars Publications and White Papers Commonfund Forum Annual Conference Treasury Institute for Higher Education Higher Education Price Index (HEPI) Commonfund Forum (Annual) Commonfund Investment Management & Governance Seminars (3 per Year) Commonfund Trustee Roundtable Series (Twice monthly on average)

Oklahoma State Regents 5 Asset Allocation for Total Institutions Dollar-weighted asset mix As of June 30, 2005 Domestic Equities International Equities Fixed Income Alternative Investments Short Term/Cash Copyright 2006 The Common Fund for Nonprofit Organizations. All rights reserved. "Commonfund" and "Commonfund Benchmarks Study" are trademarks of The Common Fund for Nonprofit Organizations. No part of this material may be used without the express written permission of The Common Fund for Nonprofit Organizations Commonfund Benchmarks Study® Educational Endowment Report Hot Charts\CFBenchmarks_Study_2006

Oklahoma State Regents 6 9.6% Average Reported One-, Three- and Five-Year Returns 1 Annual Net Total Return % Fiscal Years ending June 30 1 Net of fees. 729 Institutions Copyright 2006 The Common Fund for Nonprofit Organizations. All rights reserved. "Commonfund" and "Commonfund Benchmarks Study" are trademarks of The Common Fund for Nonprofit Organizations. No part of this material may be used without the express written permission of The Common Fund for Nonprofit Organizations. FY2005 total return 3-year return 5-year return 2006 Commonfund Benchmarks Study® Educational Endowment Report 3.5% Average return Hot Charts\CFBenchmarks_Study_2006

Oklahoma State Regents 7 Asset Allocation 1 Trend for Total Institutions Percent (%) Total Institutions Dollar Weighted Copyright 2006 The Common Fund for Nonprofit Organizations. All rights reserved. "Commonfund" and "Commonfund Benchmarks Study" are trademarks of The Common Fund for Nonprofit Organizations. No part of this material may be used without the express written permission of the Common Fund for Nonprofit Organizations. Fiscal Years ending June Commonfund Benchmarks Study® Educational Endowment Report Hot Charts\CFBenchmarks_Study_2006

Oklahoma State Regents 8 Is there a correlation between performance and liquidity? Source: 2006 Commonfund Benchmarks Study® – Educational Endowment Report, Based on 729 institutions that provided asset allocation data  2006 The Common Fund for Nonprofit Organizations. All rights reserved. "Commonfund" and "Commonfund Benchmarks Study" are trademarks of The Common Fund for Nonprofit Organizations. No part of this material may be used without the express written permission of The Common Fund for Nonprofit Organizations. Source: 2005 NACUBO Endowment Study, the two smaller fund groupings as reported by NACUBO, $26M - $50 M and <$25M, are represented in the Commonfund $10 - $50M grouping equally weighted.

Oklahoma State Regents 9 Population Demographics Technological Advances Global Competition Economic Shocks Education Competitiveness Internal and external forces effecting the Campus of the Future China-India Impact Intergenerational Equity “The Trustees of an endowed institution are the guardians of the future against the claims of the present. Their task is to preserve equity among generations.” - James Tobin Yale University

Oklahoma State Regents 10 Primary Issues in Investment Management Asset allocation is the key to successful investment management. Investments should grow to offset inflation. Over long periods of time equities typically produce higher incremental returns than cash or bonds. Diversification among asset classes and managers is a key to increase return and reduce volatility. Access quality portfolio managers and monitor them on a regular basis for compliance with guidelines and performance measurement. Conduct periodic asset allocation review. Minimize costs. Hot Charts\Asset Allocation\Primary_Issues_InvstMngmnt

Oklahoma State Regents 11 Cumulative Inflation-Adjusted Performance Historical Perspective Source: Ibbotson, Bloomberg, Commonfund Institute The equity portion of the hypothetical portfolio is based on monthly returns of the S&P 500 Index (12/65-03/05), and the fixed income portion is based on monthly returns of the Lehman Brothers Aggregate Index (1/73-03/05) and the Ibbotson Associates Long Term Corporate Bond Index (12/65-12/72). HEPI data from 7/04 to 03/05 is replaced with CPI+1%. The hypothetical portfolio is rebalanced to 70/30 annually on 1/1/yy and 5% is distributed annually on 1/1/yy. CPI HEPI Consumer Price Index (CPI) versus Higher Education Price Index (HEPI) 12/31/99 $ /31/99 $ /30/82 $33.8 7/30/82 $ /31/05 $67.5 December 1965 – December 2005 / Consumer Price Index (CPI) versus Higher Education Price Index (HEPI) 12/31/05 $87.4 Hypothetical Portfolio (70% Equity/30% Fixed Income, 5% Spending)

Oklahoma State Regents 12 World Economic Growth Source: SG Research, Global Economic Forecast, June 2006

Oklahoma State Regents 13 U.S. Real GDP (% yr/yr change) Source: BEA

Oklahoma State Regents 14 World Inflation Source: SG Research, Global Economic Forecast, June Percent (%) World US Japan EU Emerging countries China Latin America Eastern Europe

Oklahoma State Regents 15 Employment Source: BLS

Oklahoma State Regents 16 Housing Sector Weakening Source: ISI Group

Oklahoma State Regents 17 Y/Y% Change Percent Change Retail Sales and the Consumer Source: ISI Group

Oklahoma State Regents 18 Energy Prices Source: Bloomberg, EIA

Oklahoma State Regents 19 Consumer Price Index Source: BLS

Oklahoma State Regents 20 The Fear of the Three Bears

Oklahoma State Regents 21 This document is intended only for qualified, pre-existing investors in Commonfund Capital, Commonfund Realty and Commonfund Asset Management Company programs, Members of The Common Fund For Nonprofit Organizations (“Commonfund”), or other eligible institutional investors approved by Commonfund Securities, Inc. It is not intended to constitute an offer to sell, nor the solicitation of an offer to buy, securities. Any such offerings will be made only by means of information memoranda and related subscription documents that will be made available by Commonfund Securities, Inc. (a broker-dealer affiliate of Commonfund Capital, Commonfund Realty and Commonfund Asset Management Company) only at the time an offering is in progress and only to investors qualified and eligible to invest. Important Information About Procedures for Opening a New Account: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each customer who opens an account. What this means for you: When you open an account, we may ask for documents or information related to: your principal place of business, local office or other physical location; taxpayer identification number; and other documents demonstrating your lawful existence such as certified articles of incorporation, a government-issued business license, a partnership agreement, or a trust instrument, and other identifying documents. Important Notes for Private Programs