Q2-2016 Quarterly Investment Webinar - The San Diego Foundation

Quarterly Investment Narrative Conference Call

Tuesday, August 9, 2016

Speakers

Horacio Valeiras, CFA Principal, HAV Capital

Investment Chair, Board of Governors The San Diego Foundation

Matt Fettig, CFA Vice President, Chief Investment Officer

The San Diego Foundation

Theresa Nakata Vice President, Chief Communications Officer

The San Diego Foundation

Agenda

1. Macroeconomic update

2. Performance & attribution for Endowment Portfolio

3. Performance & attribution for Long-Term Portfolio

4. Performance & attribution for Medium-Term Portfolio

5. Performance & attribution for Short-Term Portfolio

6. Q&A

Price Reaction Following Brexit

Source: Bloomberg, as of 7/11/16

GDP vs. Expectations

Source: Bloomberg, quarterly Q4 2014 through Q1 2016

-160%

-120%

-80%

-40%

0%

40%

80%

US GDP Surprise

Germany GDP

Surprise

Japan GDP Surprise

UK GDP Surprise

China GDP Surprise

Diff

eren

ce b

etw

een

actu

al a

nd e

xpec

ted

GD

P

MSCI Valuation Metrics (3 months average)

Source: MSCI, as of 6/30/16

1.5

17.8

9.0

3.4

5.6

2.8

21.7

13.0

2.1

4.6

1.4

13.6

8.0

2.8

7.3

0

5

10

15

20

25

P/BV P/E Price/Cash Earnings Dividend Yield (%) Earnings Yield (%)

EAFE United States Emerging Markets

Performance & attribution for Endowment Portfolio

Asset Allocation $417.3 million as of June 30, 2016

Includes Principal Only

Returns For period ending June 30, 2016

Performance & attribution for Long-Term Portfolio

Asset Allocation $39.9 million as of June 30, 2016

Returns

Performance & attribution for Medium-Term Portfolio

Asset Allocation $53.5 million as of June 30, 2016

Returns

Performance & attribution for Short-Term Portfolio

Asset Allocation $21.1 million as of June 30, 2016

Returns

Q&A

To submit questions for the Q&A, please use the “Questions” chat function

Thank You

SDFoundation.org/Investments