EASTON EPISCOPAL FUNDS

314 North Street    Easton, MD 21601-3684

Chris Maxwell

Vice Chair, Board of Managers

March 23, 2022

We are fortunate that the Easton Episcopal Fund is guided both by the elected members of the Board of Managers, and also with significant input from our Investment Advisory Board (IAB) chaired by Richard Wright. This five-person board recommends well thought out portfolio suggestions that reflect the best investment thinking available.

The most recent meeting was held on Tuesday March 22, 2022 via ZOOM.  At that meeting the IAB presented to the Board of Managers their outlook. Capital markets will be choppy until clarity returns concerning: the invasion of the Ukraine; the economic fallout from the sanctions on Russia; and the Federal Reserve’s success in quelling inflation.

It is likely that more rate increases will occur throughout 2022 and into 2023. With the increases in short term interest rates will come an increase in intermediate and longer-term fixed income securities’ yields while decreasing the price of these bonds.

At the same time, profits from large, publicly traded companies, along with the enormous cash balances held by these companies and also by consumers in the US, could easily provide substantial support to the US economy. While a recession is possible, most do not anticipate that it would be either long or deep.

As a result of these views, we will maintain our current investment posture but will be prepared to make changes as new information is available.  In all cases, rest assured that we have substantial cash reserves in hand to honor any normal shareholder requests. Please check our website (www.eastonepiscopalfund.org) frequently to see our current asset allocation and specific holdings.

Thanks.

Chris