Socially Responsible Investment Fund EXECUTIVE SUMMARY AS OF DECEMBER 31, 2017

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1 Socially Responsible Investment Fund EXECUTIVE SUMMARY AS OF DECEMBER 31, 2017 PORTFOLIO RESULTS The Socially Responsible Investment Fund (SRIF) employs a diversified asset allocation consistent with its long term investment horizon. Although performance goals and objectives will ultimately focus on the portfolio s long term investment experience, the SRIF has experienced outperformance relative to peers since its inception. 19.2% 19.2% 15.3% 4.6% 4th Quarter of 2017 Year to Date 1 Year Since Inception (9/1/2016) top 4% of peers Figure 1: SRIF net of fees returns as of December 31, 2017 SOCIALLY RESPONSIBLE INVESTING & GOSPEL VALUE PRIORITIES The SRIF seeks to incorporate the top SRI and gospel value priorities identified via dot voting at the 2014 Convention, and most recently reaffirmed and expanded at the 2017 Convention. These values encompass both positive investment, a proactive approach to socially responsible investing, and divestment, which is restriction based. The Committee recognizes that, in isolation, each investment may not address all of the SRI and gospel value priorities, but the SRIF in whole will emphasize each of these priorities. POSITIVE INVESTMENT Investors direct money toward solution oriented securities and make investments in activities and companies believed to have a positive social impact. Climate & Clean Technology Human Rights Community Development Diversity/Equal Opportunity Figure 2: SRIF SRI & gospel value priorities DIVESTMENT Investors restrict investment in certain securities based on SRI factors, excluding those restricted securities from a portfolio. Pollution & Toxics Human Rights Executive & Exploitative Pay Animal Cruelty

2 INVESTMENT MANAGERS The Investment Committee meets quarterly with the SRIF s consultant, Sellwood Consulting, to review the Fund s performance, asset allocation and manager structure, including performance of the individual investment managers. The Investment Committee and/or Sellwood meets with each investment manager on an ongoing basis to discuss investment results, strategy, and outlook for the future, as well as any changes or issues within the firm or investment team. Figure 3: SRIF target composition MANAGER STRATEGY DESCRIPTION Responsible Investing International Global Environmental Markets Total Return ESG Social Bond Real Estate Value Parametric manages an all cap equity portfolio, optimized to meet the SRIF s customized social screening criteria. The strategy is designed to provide index like, long term diversified exposure to the asset class. The SRIF is invested in the Boston Common International Fund, an institutional mutual fund that invests in companies with sound governance and responsible financial management that they believe are capable of consistent, visible profitability. The SRIF is invested in the Pax World Global Env. Markets Fund, a mutual fund sub advised by Impax that seeks to achieve sustainable, above market returns by investing globally in companies active in rapidly growing Resource Optimization markets. The SRIF is invested in the PIMCO Total Return ESG Fund, an actively managed bond mutual fund that combines ESG focused portfolio construction with robust issuer engagement, with a goal of investing for both attractive returns and positive social and environmental change. The SRIF is invested in the TIAA CREF Social Bond Fund, an actively managed mutual fund that invests in a diversified portfolio of U.S. fixed income securities, focusing primarily on undervalued, investment grade securities. The strategy also seeks proactive social investments. The SRIF is invested in the Third Avenue Real Estate Value Fund, an institutional mutual fund that employs a fundamental, value oriented approach to construct a global real estate portfolio. Third Avenue has the flexibility to invest in any industry or region where they find the most compelling values. Page 2

3 MANAGER STRATEGY DESCRIPTION All Asset Figure 4: SRIF manager descriptions The SRIF is invested in the PIMCO All Asset Fund, an institutional mutual fund with a real return strategy that invests tactically across underlying PIMCO mutual funds with the objective of outperforming inflation by a rate of 5% over the long term. HOW DO I LEARN MORE? The SRI Stakeholder Advisory Committee is currently conducting one on one meetings with parish leaders to provide information about the SRIF and how the SRIF can help to support their goals. To explore how to put your gospel values to work for your parish via the SRIF portfolio, contact members of the SRI Stakeholder Advisory Committee. SRI STAKEHOLDER ADVISORY COMMITTEE MEMBERS Sue Hall, Convenor Christ Church, Lake Oswego sue@climateneutral.com (541) Ann Frazier Christ Church, Lake Oswego annfrazier4@comcast.net (503) Robert Howard Ascension, Portland rthoward@me.com (503) Madeline Moore St. David of Wales, Portland madmoore47@gmail.com (503) Rev. Jaime Sanders Christ Church, St. Helens motherjaime@gmail.com (503) Keith Walters Trinity Cathedral, Portland waltersk@pdx.edu (503) Douglas Young St. Lukes, Lebanon ancientangus@gmail.com (541) Robert Young St. John the Baptist, Portland robert@economists.com (503) INVESTMENT COMMITTEE MEMBERS Rick Grimshaw, Convenor St. Michael and All Angels, Portland (503) Dick Anderson Christ Church, Lake Oswego (503) Rev. Brendan Barnicle St. Stephen s, Portland (503) James Baxendale Trinity Cathedral, Portland (503) Jeffrey Krum Ascension, Portland (503) Roger Neu St. John the Baptist, Portland (503) Lindsey Williams St. John the Baptist, Portland (503) Mike Stone Treasurer Christ Church, Lake Oswego (503) Mike Penfield, ex-officio US Bank St. John the Baptist, Portland (503) Ashlee Moehring, ex-officio Investment Advisor Sellwood Consulting (503) Page 3

4 Diocese of Oregon Socially Responsible Investment Fund Performance % of QTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs Return Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) Socially Responsible Investment Fund Sep-16 60% MSCI ACW Index / 40% Barclays Aggregate Index Trust Funds < $50mm Net Universe Rank US Equity Sep-16 Parametric Responsible Inv (SA) Sep-16 Non-US Equity Sep-16 Boston Common Intl (BCAIX) Sep-16 Global Equity Sep-16 Pax Global Env Markets (PGINX) Sep-16 Fixed Income Sep-16 PIMCO Total Rtn ESG;Inst (PTSAX) Sep-16 TIAA-CREF Soc Bond Inst (TSBIX) Sep-16 Real Estate Sep-16 Third Avenue Real Estate (TAREX) Sep-16 Marketable Alternatives Sep-16 PIMCO All Asset (PAAIX) Sep-16 All manager performance is client-specific after the client inception date. Rates of Return Ending December 31, 2017 Inception Since Page 4

5 Socially Responsible Investment Fund Socially Responsible Investment Fund As of December 31, 2017 Asset Allocation vs. Target Current Target Difference Target Range Within Range US Equity 48.1% 46.5% 1.6% 37.0% % Yes Parametric Responsible Inv (SA) 48.1% Non-US Equity 12.7% 12.5% 0.2% 10.0% % Yes Boston Common Intl (BCAIX) 12.7% Global Equity 13.1% 12.5% 0.6% 10.0% % Yes Pax Global Env Markets (PGINX) 13.1% Fixed Income 17.9% 20.0% -2.1% 16.0% % Yes PIMCO Total Rtn ESG;Inst (PTSAX) 8.9% TIAA-CREF Soc Bond Inst (TSBIX) 9.0% Real Estate 3.1% 3.0% 0.1% 2.0% - 4.0% Yes Third Avenue Real Estate (TAREX) 3.1% Marketable Alternatives 4.6% 5.0% -0.4% 4.0% - 6.0% Yes PIMCO All Asset (PAAIX) 4.6% Cash Equivalent 0.5% 0.5% 0.0% 0.0% - 2.0% Yes Fidelity Instl MM Govt I (FIGXX) 0.5% Total 100.0% 100.0% XXXXX The SRIF was funded on August 5, Page 5