The Episcopal Church Foundation in West Texas Investment Program

QUARTERLY REPORT
December 31, 2012 Market Report With a strong first quarter, a negative second quarter, a good third quarter, and a flat fourth quarter, by year-end US equity markets had achieved strong gains for the year. With the exception of the Dow Jones Industrial index, most of the familiar US stock market indices reported gains in excess of 16% for 2012. Stock market performance seemed to be driven by political considerations during the year. During the first part of 2012, the concern was the European banking system in general and Greece in particular. Following the US elections in November, the focus shifted to worries about the fiscal cliff. All the while, the US economy continued a slow recovery, but with unemployment remaining stubbornly high. Stock investor sentiment was aided during the year by actions of the Federal Reserve to maintain an easy money policy. As shown below, all capitalization sectors and all investment styles achieved nice gains for the year. The value style outperformed the growth style in both large and small capitalization sectors. International stocks performed in line with the domestic stock market for the year. Investment gains in bonds were flat during the quarter and slightly below long term trends for the year. Nevertheless, bonds achieved respectable gains for the year.

Market Returns for Year

17.5% 15.3% 14.6% 18.1% 16.4%

4.2% 1.5%

Large Cap Growth

Large Cap Value

Small Cap Growth

Small Cap Value

International Stocks

Short Term Bonds

Intermediate Bonds

Model Portfolio Review All four model portfolios achieved gains for the quarter and for the year. The 2012 investment gains ranged from 3.1% for the Capital Maintenance Model to 11.9% for the Growth Model. Relative performance for the quarter was favorable for all of the models, outperforming their peer groups and relevant indices. The Growth Model slightly underperformed for the year. All models had favorable relative performance for the longer time periods shown in the report. Details of the performance of the four models are shown below.

Asset Class Investment Results The Foundations performance this quarter for the three assets classes in which it invests, along with comparative benchmark returns, are shown in the following table.

Asset Class Common Stocks Fixed Income Cash Equivalents

Return 1.2% 1.2% 0.0%

Benchmark 0.3% 0.2% 0.1%

For the year, the Foundations performance in common stocks was below the benchmark by 300 basis points, whereas the Foundations fixed income performance exceeded the benchmark by 593 basis points.

Account Status Total Foundation assets at year-end were $52.7 million, an increase of $6.5 million during the year. Investment gains totaled $4.8 million or 10.2% for 2012. Twenty new accounts were opened during the year. At year-end the Foundation had a total of 185 accounts as follows:

Ownership Churches/Schools Diocese

Number of Accounts 126 59

Amount 25.4 million 27.3 million

Portfolio Performance as of December 31, 2012*

Growth 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 1.32 0.03 0.26 1 Yr 11.93 (0.22) (0.23) 3 Yr 8.10 0.69 (0.13) 5 Yr 3.07 0.93 0.38

Growth & Income 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 1.03 0.08 0.31 1 Yr 10.23 0.31 0.65 3 Yr 7.55 0.63 0.03 5 Yr 3.91 1.21 0.62

Income 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 0.82 0.11 0.35 1 Yr 9.34 0.97 1.72 3 Yr 6.55 0.60 0.29 5 Yr 4.26 1.59 0.79

Capital Maintenance 3 Mo Portfolio Total Return +/- Peer Group Composite +/- Index Composite 0.32 0.11 0.23 1 Yr 3.06 1.11 1.95 3 Yr 2.22 0.44 0.64 5 Yr 2.72 0.96 0.78

* Returns for one year and greater than one year are annualized. Past performance does not guarantee future results.