An Indexed Approach to Investing

The Easton Episcopal Balanced Fund is managed for the benefit of the Diocese and parishes and other entities who are a part of the Diocese of Easton. It is currently a moderate allocation (50-70% equity) mix of U.S. Equities, Foreign Equity, and Fixed Income. The investment positions for each of these classes are actively or passively managed index funds with low expenses. The performance of the Fund is measured against a benchmark of 52% total US stock market as represented by the Russel 3000 index, 13% foreign equity as represented by MSCI ACWI ex USA and a 35% fixed income allocation represented by Barclays Intermediate Credit Fund. The Board of Managers from time to time sets or adjusts tactical targets for each of these classes based on their opinions of market conditions. The fund is re-balanced quarterly. The Board also chooses the specific mutual funds or exchange traded funds to invest in these categories; these choices may also change over time.