Transcript Introduction

December 31, 2007
Philanthropic Management
Presentation to:
Missionary Society of Connecticut
Daniel W. Keating, CFA
Director; SR Institutional Portfolio Strategist
860.952.7226
[email protected]
Brian Drainville, CFA
SR Fixed Income Portfolio Manager
617.772.3522
[email protected]
Peter C. Larson
Patrick J. Staffaroni, V.P.
Institutional Investments Relationship Manager
860.952.7380
[email protected]
Scott L. Davis, VP
SR Equity Portfolio Manager Income Strategies
617.341.2249
[email protected]
Edward P. Hickey, VP
Equity Portfolio Manager II
617-341-2246
[email protected]
For institutional use only. Distribution to any other audience is prohibited.
DIR-DIRECTOR; SR EQUITY PORTFOLIO MGR I
860.952.7251
[email protected]
Table of Contents

Executive Summary/Investment Guidelines

Missionary Society of Connecticut Combined Portfolio Review

Missionary Society of Connecticut Balanced—Equity Large Cap Value Review

Missionary Society of Connecticut Small Cap Equity Review

Missionary Society of Connecticut Large Cap Growth Review

Missionary Society of Connecticut Balanced—Fixed Income Review

Economic Review

Appendix
For institutional use only. Distribution to any other audience is prohibited.
Executive Summary/Investment Guidelines
For institutional use only. Distribution to any other audience is prohibited.
Executive Summary
Missionary Society of Connecticut





Endowment market value as of the quarter ended December 31, 2007 equaled $68,126,739 compared to a September 30, 2007 market value $69,190,035. Net
withdrawals for the period approximated $1,879,808.
Portfolio asset class weightings are in line with investment policy guidelines. As of December 31, 2007, the Endowment was allocated 63.86% to equity, 32.74% to
fixed income and 3.38% to cash.
For the quarter, the combined portfolio generated a total return of -0.52% with equities returning -2.09% and bonds 2.62%. For the past twelve months, the
combined portfolio returned 7.28% with equities returning 8.61% and bonds 5.76%. Total portfolio returns exceed the benchmark for all time periods.
Equity markets posted negative returns for the quarter ending December 31. Anxiety surrounding the potential for additional losses at large financial institutions,
tightening credit markets, slowing corporate profits, and inflation resulted in a continued reassessment of risk. While concerns about credit quality and inflation
tempered returns, fixed income markets generally rose during the quarter as investors sought relief in the relative safety of higher quality bonds.
In terms of style, growth strategies continued to outperform their value counterparts with larger capitalization stocks outperforming small cap issues. International
equities continued to outpace their domestic counterparts with emerging markets significantly outperforming developed markets. From a sector standpoint,
Energy, Information Technology and Telecommunication Services provided the best relative performance. Consumer Discretionary and Financial stocks generated
the weakest returns.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut
Investment Guidelines
Missionary Society of Connecticut Investment Objective
The primary investment objective of the Missionary Society is to produce as high a level of
current income as possible while still allowing for long-term capital appreciation to help
offset inflation.
In addition, the investment committee selects for its portfolio from among those investments
meeting standards of socially responsible investments as established by annual meetings of
the Connecticut Conference of the United Church of Christ.
To further elaborate on this objective, it should be noted that the investment committee provides the
Bank with annual unit income goals, and lists of those securities which do not meet the social
responsibility requirements established by the annual meeting of the Connecticut Conference of the
United Church of Christ.
Exhibit C
Missionary Society of Connecticut
Investment Objectives and Guidelines
Adopted by the Finance Committee
C-I. Investment Objectives (87-5F-3):
The primary investment objective of the Missionary Society is to produce current income while still allowing for
long-term capital appreciation to help offset inflation. More specifically, and in order of priority, the following
objectives shall apply:
1.
Stability of investment income—to meet the budgetary requirements of participants within The Fund.
2.
Preservation of capital—to provide a reasonable assurance to Fund participants of the level of principal
that would be available should a need for withdrawal arise.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut
Investment Guidelines
3.
Growth of unit value and investment income in excess of inflation—as needed to meet withdrawals and
distributions.
In addition, portfolio investments will be made only in those securities which meet the standards of socially responsible investments as established by annual meetings of the
Connecticut Conference of the United Church of Christ or its Board of Directors (per addendum).
C-II.
Investment Policy Guidelines (87-5F-3):
The following guidelines shall apply to the investment of The Fund's assets:
1.
Eligible Securities - The portfolio may be invested in
a.
common stocks traded on national exchanges
b. public bonds
c.
convertible securities
d. short-term securities
The investment advisor(s) may request specific permission from the Finance Committee to invest a portion (not to exceed 20% in the aggregate) of The Fund's assets in other securities
not listed above, e.g., options, futures, foreign, venture capital, etc.
2. Asset Mix —The Fund's assets shall normally be invested in a combination of stocks and bonds, the proportion of which shall be set annually by the Finance Committee. The
investment advisor(s) may deviate from the stated
normal mix by + 10% of total assets without specific permission of the Committee.
3. Diversification—The portfolio will generally be diversified by asset class and within asset types. Securities of any
Government, shall not exceed 10% of Fund assets at market.
4. Quality—The portfolio will generally have a bias for quality. No more than 10% of the fixed income
in issues rated Baa or lower.
For institutional use only. Distribution to any other audience is prohibited.
single issuer, except the U.S.
component shall be
Missionary Society of Connecticut
Investment Guidelines
4.
Quality—The portfolio will generally have a bias for quality. No more than 10% of the fixed income component shall be in issues rated Baa or lower.
C-III. Performance Evaluation (87-5F-3):
Portfolio performance results will be evaluated on a long-term basis, generally over a 3-5 year time period or full market cycle. Specific attention will be placed on:
1.
Real and absolute total returns.
2. Comparisons against appropriately weighed results of generally accepted stock and bond indices (Standard & Poor's 500 Stock Index, Lehman Government/Corporate Bond
Index).
3.
Comparisons of the results of individual asset classes against appropriate indices.
4.
Consistency of results over interim periods.
5.
Volatility of asset values and investment income.
Consideration will be given as well to the economic costs associated with restrictions on investments considered to be socially unacceptable to The Fund.
C-IV. Reporting (87-5F-3):
The investment advisor(s) will meet with the Finance Committee quarterly and will review portfolio objectives, strategy and performance. Such information will be provided the
Committee as necessary to evaluate compliance with investment policy guidelines and performance as indicated above.
The Committee shall review with the investment advisor(s) at least annually social responsibility restrictions and asset mix targets as set forth in the attached addendum. Interim
reporting may occur as requested by either the Committee and/or the advisor(s).
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut
Investment Guidelines
C-V.
Asset Mix (87-5F-3):
The view and determination of asset mix among different asset classes is the responsibility of The Finance Committee. The Committee has set the following ranges:
1. Normal Mix:
60% Stocks/40% Bonds
2. Equity Range:
50%–70%
3. Fixed Income Range:
30%–50%
Within the Equity allocation, the following investments and percentage weightings are permissible:
Small capitalization:
0 – 20%
International:
0 – 25%
At the discretion of the Finance Committee, shifts between different equity styles are allowed (i.e. value vs. growth).
Convertible bonds and convertible preferred stocks will be considered part of the equity component. Short Term securities maturing in less than one year will be part of the fixed
income component.
For institutional use only. Distribution to any other audience is prohibited.
Combined Portfolio Review
Missionary Society of Connecticut
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Combined Funds
Portfolio Review as of December 31, 2007
Reconciliation of Assets
Beginning Market Value (October 1, 2007)
$
Net Contributions/Withdrawals
(1,879,808)
Income Earned
504,270
Change in Market Value
Ending Market Value (December 31, 2007)
Annualized Income Yield
Asset values can differ slightly due to rounding.
For institutional use only. Distribution to any other audience is prohibited.
69,190,035
-3,447,373
$
68,126,739
2.96%
Missionary Society of Connecticut Combined Funds
Portfolio Review as of December 31, 2007
Asset Allocation
MARKET VALUE
($)
DIVERSIFICATION DIVERSIFICATION
(%)
(%) of Equity
ESTIMATED
INCOME
($)
MARKET YIELD
(%)
Large Cap Value Equity
21,359,350
31.35
49.10
631,350
2.96
Large Cap Growth
Equity
14,762,268
21.67
33.93
118,947
0.81
Small Cap Value Equity
4,975,951
7.30
11.44
45,441
0.91
International Equity
2,407,968
3.53
5.53
49,255
2.05
Total Equity
43,505,537
63.86
100%
844,993
1.94
Fixed Income
22,303,166
32.74
N/A
1,175,620
5.27
Cash Equivalents
2,299,612
3.38
N/A
115,946
5.04
Portfolio Total
68,126,740
100.00
N/A
2,136,559
3.14
Cash
3%
Fixed
Income
33%
Equity
64%
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Combined Funds
Portfolio Performance as of December 31, 2007
12%
10.58
10%
9.51
8.33
8%
7.32
7.32
6.23
8.25
7.07
6.26
6.23
6%
4%
2%
0%
4Q 2007
-2%
-0.46
Year-to-Date
1 Year
3 Years
5 Years
10 Years
-0.80
Missionary Society of Connecticut Combined Funds
Past performance is no guarantee of future results.
Returns shown are gross of fees.
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
60% S&P 500 / 40% Lehman Aggregate Bond Fund
Current Asset Allocation vs. Target Asset Allocation
Missionary Society of Connecticut Combined Funds
A comparison of the current portfolio versus the target weightings.
Asset Class
Current
Target
Benchmark
Policy
Category
Weighting
Weighting
Weighting
Ranges
44.0%
7.0%
9.0%
60.0%
40.0%
0.0%
40.0%
0.0%
100.0%
18-70%
0-14%
0-18%
50-70%
30-50%
0.0%
30-50%
0-20%
100.0%
Large Cap
Small Cap
International
Total Equity Allocation
High Quality Fixed Income
High Yield Fixed Income
Total Fixed Income
Total Money Market
Total Assets
For institutional use only. Distribution to any other audience is prohibited.
53.02%
7.30%
3.53%
63.86%
32.74%
0.00%
32.74%
3.38%
100.0%
65.0%
35.0%
100.0%
Portfolio Performance - Missionary Society of Connecticut Combined Funds Annualized Returns for the Period Ending
December 31, 2007
Last
Three
Months
(%)
1.31
1.05
YEARTODATE
(%)
5.32
5.00
Market Value
Allocation
Target
Allocation
Actual
$2,299,612
0.0%
3.38%
F ixe d Inc o m e M gd
Lehman A ggregate B o nd
Lehman Go v't/Credit
$22,303,166
40.0%
32.74%
2.60
3.00
3.10
E quit y- M gd
S&P 500
La rge C a p V a lue E quit y
Russell 1000 Value
La rge C a p G ro wt h E quit y
Russell 1000 Gro wth
S m a ll C a p E quit y
Russell 2000 Index
$43,505,537
60.0%
63.86%
P R O D UC T
C a s h a nd C a s h E quiv a le nt
90 Day TB ill
Int e rna t io na l E quit y
$21,359,350
31.35%
$14,762,268
21.67%
$4,975,951
7.30%
$2,407,968
3.53%
EA FE
T o t a l- A ll A s s e t s
T o t a l- A ll A s s e t s N e t o f F e e s
60%S&P 500 & 40% Lehman A ggregate
$68,126,740
$68,126,740
For institutional use only. Distribution to any other audience is prohibited.
100.0%
100.0%
100.00%
100.00%
1-YEAR
(%)
3-YEAR
(%)
5.32
5.00
4.49
4.30
3.15
3.07
3.89
3.72
5.74
6.96
7.25
5.74
6.96
7.25
4.13
4.56
4.44
4.20
4.42
4.44
6.14
5.97
6.01
-2.09
-3.33
-3.11
-5.80
1.09
-0.76
-5.08
-4.57
---1.71
8.61
5.50
6.68
-0.17
16.51
11.82
1.19
-1.55
--11.64
8.61
5.50
6.68
-0.17
16.51
11.82
1.19
-1.55
--11.64
11.27
8.62
11.47
9.31
12.20
8.69
7.44
6.80
--17.32
15.23
12.83
14.54
14.62
--12.11
16.50
16.25
--22.09
9.65
5.91
9.28
7.68
--3.83
--7.08
--9.04
-0.52
-0.63
-0.80
7.28
6.78
6.23
7.28
6.78
6.23
8.28
7.80
7.07
10.56
10.05
9.51
8.26
7.74
6.26
5-YEAR 10-YEAR
(%)
(%)
Asset Allocation: Attribution Analysis
December 31 , 2006 – December 31, 2007
Allocation
Selection
Total
Effect (%)
Effect (%)
Effect%
Large Cap Value
-1.97%
2.37%
0.40%
Large Cap Grow th
0.97%
0.71%
1.68%
Small Cap
-0.69%
0.25%
-0.44%
International
0.00%
0.00%
0.00%
Total Equity
-1.69%
3.33%
1.64%
High Quality Fixed Income
-0.20%
-0.41%
-0.61%
Total Fixed Incom e
-0.20%
-0.41%
-0.61%
Cash/Cash Equivalents
0.01%
0.02%
0.03%
Total Assets
-1.88%
2.94%
1.06%
Asset Class
For institutional use only. Distribution to any other audience is prohibited.
Equity Large Cap Value Review
Missionary Society of Connecticut Balanced Fund
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Value Equity
Portfolio Performance as of December 31, 2007
14.54
15%
14.62
13.09
11.47
12%
9.31
9.28
8.44
9%
7.68
6.68
6.24
6%
3%
2.19
0%
-0.17
-3%
-3.11
-6%
-4.74
-5.80
4Q 2007
1 Year
Missionary Society of CT Large Cap Value-Equity Only
3 Years
Lipper Large Cap Value Funds Average
Past performance is no guarantee of future results.
Returns shown are gross of fees.
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
5 Years
10 Years
Russell 1000 Value Index
Missionary Society of Connecticut Large Cap Value Equity
Significant Transactions During 4th Quarter 2007
New Holdings
■ FPL Group Inc.
■ TJX Cos.
■ Fannie Mae
■ MBIA
Major Additions to Positions
■ Wal-Mart Stores Inc
■ Willis Group Holdings, Ltd
■ IBM Corp.
■ AMBAC (sold in January)
■ PMI Group Inc.
Eliminations
■ Edison International
■ Diebold Inc.
■ National City Corp.
■ Morgan Stanley
■ Freddie Mac
■ MBIA
■ PMI Group Inc.
For institutional use only. Distribution to any other audience is prohibited.
Major Reductions to Positions
■ Macy’s Inc.
■ Citigroup Inc.
■ Wells Fargo & Co.
■ Deere & Co.
■ PPL Corp.
Missionary Society of Connecticut Large Cap Value Equity
Quarterly Equity Sector Weightings1 as of December 31, 2007
SEPTEMBER 30, 2007
DECEMBER 31, 2007
MISSIONARY SOCIETY OF CT
LARGE CAP VALUE EQUITY
(%)
MISSIONARY SOCIETY OF CT
LARGE CAP VALUE EQUITY
(%)
RUSSELL 1000
VALUE INDEX
(%)
Consumer Discretionary
8.7
8.8
7.5
Consumer Staples
11.0
12.1
8.4
Energy
11.8
12.5
15.2
Financial
22.4
20.4
30.7
Health Care
12.3
13.2
7.3
Industrials
9.0
8.7
10.6
Information Technology
10.2
10.4
3.5
Materials
2.0
1.9
4.1
Telecom Services
9.3
9.6
6.5
Utilities
3.1
2.4
6.4
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Value Equity
Top 10 Holdings1 as of December 31, 2007
HOLDINGS
PERCENTAGE OF EQUITY
AT&T Inc
5.5
General Electric Co
5.0
Exxon Mobil Corporation
4.8
Pfizer Inc
3.8
Verizon Communications Inc
3.5
McDonalds Corp
3.0
Procter & Gamble Co
2.8
Chevron Corp
2.6
Intl Business Machines Corp
2.2
BP PLC-spon ADR
2.1
Total
35.3
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Value Equity
Equity Holdings Sector Matrix¹ as of December 31, 2007
SECTOR
PORTFOLIO HOLDINGS
%
%
%
PORTWT INDXWT
%
%
Consumer Discretionary
CBS CORP
MCDONALDS CORP
SHERWIN WILLIAMS CO
1.3
3.0
1.0
HOME DEPOT INC
MCGRAW HILL COS INC
TJX COS INC NEW
0.5
0.7
0.6
MACYS INC
MEREDITH CORP
0.4
1.0
8.4
7.5
AVON PRODS INC
GENERAL MLS INC
NESTLE S A
WAL-MART STORES INC
0.7
0.7
0.8
1.3
COCA COLA CO
HEINZ H J CO
PEPSICO INC
1.3
0.8
0.7
CONAGRA FOODS INC
KIMBERLY CLARK CORP
PROCTER & GAMBLE CO
0.8
1.8
2.8
11.6
8.4
BP P L C
OCCIDENTAL PETE CORP DEL
2.1
0.7
CHEVRON CORP
ROYAL DUTCH SHELL PLC
2.6
1.8
EXXON MOBIL CORP
4.8
12.0
15.2
AMBAC FINL GROUP INC
CITIGROUP INC
FEDERATED INVS INC PA
J P MORGAN CHASE & CO
MBIA INC
US BANCORP DEL
WILLIS GROUP HLDGS LTD
PLATINUM UNDERWRITERS HLDGS LT
0.2
1.1
0.9
1.3
0.0
1.6
1.0
0.3
BANK NEW YORK MELLON CORP
DISCOVER FINL SVCS
GALLAGHER ARTHUR J & CO
KIMCO REALTY CORP
PRINCIPAL FINL GROUP INC
UNUM GROUP
METLIFE INC
XL CAP LTD
1.3
0.1
0.8
0.5
1.4
1.4
1.7
0.8
CHUBB CORP
FEDERAL NATL MTG ASSN
HARTFORD FINL SVCS GROUP INC
LINCOLN NATL CORP IND
TRAVELERS COS INC
WELLS FARGO & CO NEW
SCHERING PLOUGH CORP
1.1
1.1
1.6
2.0
0.9
1.1
1.1
23.4
30.7
ABBOTT LABS
JOHNSON & JOHNSON
PFIZER INC
1.6
2.0
3.8
BRISTOL MYERS SQUIBB CO
MERCK & CO INC
WYETH
0.5
1.8
0.7
GLAXOSMITHKLINE PLC
NOVARTIS A G
1.0
1.4
12.7
7.3
DEERE & CO
WASTE MGMT INC DEL
1.4
1.4
GENERAL ELEC CO
5.0
UNITED TECHNOLOGIES CORP
0.6
8.4
10.6
AUTOMATIC DATA PROCESSING INC
INTEL CORP
TAIWAN SEMICONDUCTOR MFG LTD
1.0
1.5
1.0
CANON INC
INTERNATIONAL BUSINESS MACHS
0.6
2.2
HEWLETT PACKARD CO
NOKIA CORP
1.7
2.0
10.0
3.5
DOW CHEM CO
0.9
DU PONT E I DE NEMOURS & CO
1.0
1.9
4.1
AT&T INC
5.5
SPRINT NEXTEL CORP
0.2
VERIZON COMMUNICATIONS INC
3.5
9.2
6.5
DOMINION RES INC VA NEW
PPL CORP
0.6
0.6
ENTERGY CORP NEW
0.6
FPL GROUP INC
0.6
2.3
6.4
Consumer Staple
Energy
Financial
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
For institutional use only. Distribution to any other audience is prohibited.
Small Cap Equity Review
Missionary Society of Connecticut
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Small Cap Equity
Total Performance as of December 31, 2007
4Q
2007
(%)
LATEST
12 MONTHS
(%)
LATEST
3 YEARS
(%)
LATEST
5 YEARS
(%)
SINCE
INCEPTION1
(%)
Total Fund
-5.08
1.19
7.44
16.50
10.67
Equity
-5.24
0.91
7.73
17.25
10.90
Cash and Cash Equivalent
1.24
5.23
4.43
3.11
2.95
Russell 2000 Index
-4.57
-1.55
6.80
16.25
8.79
Past performance is no guarantee of future results.
1 Inception date: April 1, 2002
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Small Cap Equity
Portfolio Performance as of December 31, 2007
18%
16.50
16.25
15%
12%
10.67
8.79
9%
7.44
6.80
6%
3%
1.19
0%
-1.55
-3%
-6%
-5.08
-4.57
4Q 2007
1 Year
3 Years
Missionary Society of CT Small Cap-Total Fund
Past performance is no guarantee of future results.
Returns shown are gross of fees.
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
5 Years
Inception-to-Date
Russell 2000 Index
Missionary Society of Connecticut Small Cap Equity
Quarterly Equity Sector Weightings1 as of December 31, 2007
SEPTEMBER 30, 2007
DECEMBER 31, 2007
MISSIONARY SOCIETY OF CT
SMALL CAP EQUITY
(%)
MISSIONARY SOCIETY OF CT
SMALL CAP EQUITY
(%)
RUSSELL 2000
INDEX
(%)
Consumer Discretionary
14.6
14.4
13.9
Consumer Staples
2.9
2.4
2.9
Energy
3.6
3.8
6.4
Financial
9.8
9.6
19.4
Health Care
19.5
18.6
13.8
Industrials
21.0
19.9
14.8
Information Technology
23.0
25.4
18.6
Materials
3.2
3.2
5.3
Telecom Services
0.4
0.3
1.5
Utilities
2.1
2.2
2.9
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Small Cap Equity
Top 10 Holdings1 as of December 31, 2007
HOLDINGS
PERCENTAGE OF EQUITY
Res-Care Inc
3.1
Progress Software Corp
2.7
Unifirst Corp Mass
2.5
NCI Building Systems Inc
2.4
Key Technology Inc
2.0
Benchmark Electronics Inc
1.6
Nordson Corp
1.5
West Pharmaceutical Services
1.5
Consolidated Graphics Inc
1.2
CEC Entertainment Inc
1.1
Total
19.4
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Small Cap Equity
Equity Holdings Sector Matrix¹ as of December 31, 2007
PORTFOLIO HOLDINGS
SECTOR
%
%
%
PORTWT INDXWT
%
%
Consumer Discretionary
ARVINMERITOR INC
O CHARLEYS INC
CALLAWAY GOLF COMPANY
JARDEN CORP
MORGANS HOTEL GROUP CO
COLLECTIVE BRANDS INC
RC2 CORP
RUBY TUESDAY INC
THE STEAK N SHAKE COMPANY
VALUEVISION MEDIA INC CL A
0.2
0.5
0.3
0.4
0.3
0.8
0.8
0.1
0.2
0.1
THE BUCKLE INC
COOPER TIRE & RUBBER
HOT TOPIC INC
LITHIA MTRS INC CL A
MONRO MUFFLER BRAKE INC
RENT-A-CENTER INC
REGENT COMMUNICATIONS INC DE
SINCLAIR BROADCAST GROUP-A
STAGE STORES INC
QUIKSILVER INC
0.8
0.5
0.1
0.3
0.4
0.3
0.1
0.1
0.7
0.2
CEC ENTERTAINMENT INC
DORMAN PRODUCTS INC
HAWK CORP - CLASS A
STEINWAY MUSICAL INSTRS INC
NOBEL LEARNING CMNTYS INC COM
ROCKY BRANDS INC
REGIS CORP
SCHOLASTIC CORP
UNIFIRST CORP MASS COM
1.1
0.9
0.2
0.3
0.3
0.0
0.9
0.5
2.4
13.9
13.9
1.0
0.7
CENTRAL GARDEN & PET CO
PANTRY INC
0.1
0.4
CENTRAL GARDEN AND PET CO-A
0.2
2.5
2.9
0.7
0.6
1.0
GEOMET INC
PETROQUEST ENERGY INC
WHITING PETROLEUM CORP
0.1
0.2
0.5
KODIAK OIL & GAS CORP
SUPERIOR WELL SERVICES INC
WARREN RESOURCES INC
0.0
0.3
0.1
3.7
6.4
0.2
0.3
0.4
0.6
0.4
0.1
0.2
0.7
0.1
0.5
AMERICAN CAMPUS COMMUNITIES
DIME COMMUNITY BANCSHARES
ENCORE BANCSHARES INC
FIRST NIAGARA FINANCIAL GRP
HORACE MANN EDUCATORS
MIDLAND CO COM
NAVIGATORS GROUP INC
PHOENIX COMPANIES INC
SUNSTONE HOTEL INVESTORS INC
UMB FINANCIAL CORP
0.5
0.2
0.1
0.1
0.4
0.3
0.2
0.2
0.1
0.2
0.3
ASHFORD HOSPITALITY TRUST
0.4
DARWIN PROFESSIONAL UNDERWRITERS
0.1
FLAGSTAR BANCORP INC
0.4
FIRST POTOMAC REALTY TRUST
0.7
HILB ROGAL & HOBBS CO
0.4
NEWALLIANCE BANCSHARES INC
0.2
NYMAGIC INC
0.2
QC HOLDINGS INC
0.5
STATE AUTO FINANCIAL CORP
0.3
WADDELL & REED FINANCIAL-A
9.3
19.4
0.0
0.4
0.6
0.4
1.0
0.1
0.8
0.4
3.0
0.3
1.4
ADOLOR CORPORATION
CAMBREX CORP
DATASCOPE CORP
HI-TECH PHARMACAL INC
LIFECORE BIOMEDICAL INC COM
MAGELLAN HEALTH SVCS INC COM
OBAGI MEDICAL PRODUCTS INC
PROVIDENCE SERVICE
SYMMETRY MEDICAL INC
U.S. PHYSICAL THERAPY INC
0.1
0.3
0.8
0.3
0.6
0.5
0.5
0.8
0.5
0.2
ANALOGIC CORP
CRITICARE SYS INC
LANGER INC
INVACARE CORP
LIFEPOINT HOSPITALS INC
NOVEN PHARMACEUTICALS INC
PEDIATRIX MEDICAL GROUP INC
PSS WORLD MEDICAL INC
STAAR SURGICAL CO COM PAR $0.01
VALEANT PHARMACEUTICALS INTL
1.1
0.1
0.1
0.9
0.4
0.4
0.8
0.5
0.2
0.3
17.9
13.8
Consumer Staple
CASEYS GENERAL STORES INC
CORN PRODUCTS INTL INC
Energy
GULFMARK OFFSHORE INC
NEWPARK RESOURCES INC
TETRA TECHNOLOGIES INC
Financial
ABINGTON BANCORP INC
ACADIA REALTY TRUST
DIAMONDROCK HOSPITALITY CO
FIRST MERCURY FINANCIAL CORP
GRAMERCY CAP CORP COM
JEFFERSON BANCSHARES INC TEN
NATIONAL INTERSTATE CORP
ORIENTAL FINANCIAL GROUP
RAM HOLDINGS LTD
TAYLOR CAP GROUP INC COM
Health Care
ACUSPHERE INC COM
BIOMARIN PHARMACEUTICAL INC
COOPER COS INC
GREATBATCH INC
KV PHARMACEUTICAL CO-CL A
MEDIWARE INFORMATION SYS INC
OWENS & MINOR INC
PERRIGO CO
RES-CARE INC COM
THORATEC CORP
WEST PHARMACEUTICAL SERVICES
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Small Cap Equity
Equity Holdings Sector Matrix¹ as of December 31, 2007
SECTOR
PORTFOLIO HOLDINGS
%
%
%
PORTWT INDXWT
%
%
Industrials
ARKANSAS BEST CORP
BALDOR ELECTRIC
CLEAN HARBORS INC
FROZEN FOOD EXPRESS INDS
INSTEEL INDUSTRIES INC
KEY TECHNOLOGY INC COM
MILLER INDUSTRIES INC/TENN
NORDSON CORP
RUSH ENTERPRISES INC CL A
TENNANT CO
0.2
0.6
0.8
0.1
0.2
1.9
0.2
1.5
0.4
0.3
WATTS WATER TECHNOLOGIES-A
0.2
ALBANY INTL CORP-CL A
BTU INTL INC
EMCOR GROUP INC
FLANDERS CORPORATION
KFORCE INC COM
LSI INDS INC COM
NAVIGANT CONSULTING INC
NORTHWEST PIPE CO COM
SPHERION CORPORATION
TETRA TECH INC
1.0
0.3
0.3
0.4
1.0
0.9
0.2
0.3
0.2
0.5
AAR CORP
CONSOLIDATED GRAPHICS INC
FTI CONSULTING INC
GRAFTECH INTERNATIONAL LTD
KANSAS CITY SOUTHERN
MCGRATH RENTCORP COM
NCI BUILDING SYSTEMS INC
PACER INTERNATIONAL INC
STERLING CONSTRUCTION CO
WERNER ENTERPRISES INC
0.9
1.1
0.6
0.6
0.5
0.7
2.3
0.3
0.3
0.2
19.2
14.8
24.5
18.6
3.1
5.3
0.3
1.5
2.2
2.9
Information Technology
ADC TELECOMMUNICATIONS INC
0.4
ADTRAN INC
0.3
AGILYSYS INC
0.1
ANALYSTS INTL CORP COM
BENCHMARK ELECTRONICS INC
COMPUTER TASK GROUP INC COM
BOTTOMLINE TECHNOLOGIES
0.2
1.5
1.1
0.2
ATMI INC
BOOKHAM INCORPORATED
EFJ INCORPORATED
EPICOR SOFTWARE CORP
0.5
0.1
0.1
0.5
AVID TECHNOLOGY INC
CIRRUS LOGIC INC
EARTHLINK
EXAR CORP
0.4
0.3
0.4
0.4
FARO TECHNOLOGIES INC
HYPERCOM CORP
INFOUSA INC
LECROY CORP COM
MERIX CORP
MSC.SOFTWARE CORPORATION
NEWPORT CORP
PLEXUS CORP
PERICOM SEMICONDUCTOR CORP
SELECTICA INC COM
STARTEK INC
0.8
0.3
0.6
0.5
0.1
1.1
0.5
0.9
1.0
0.2
0.1
FAIRCHILD SEMICON INTL -CL A
IMATION CORP
IXYS CORPORATION
LAWSON SOFTWARE INC
MOBILITY ELECTRONICS INC
MASTEC INC
NU HORIZONS ELEC CORP
PROGRESS SOFTWARE CORP
PERFORMANCE TECHNOLOGIES INC
SONIC SOLUTIONS
STEC INC
0.3
0.4
0.2
0.5
0.1
0.3
0.1
2.6
0.4
0.2
0.4
HI/FN INC
INTEGRAL SYS INC MD COM
KEITHLEY INSTRUMENTS INC
MENTOR GRAPHICS CORP
MPS GROUP INC
NCI INC-CL A
ON SEMICONDUCTOR CORPORATION
PRESSTEK INC
RIMAGE CORP COM
S1 CORP
SYBASE INC
0.1
0.6
0.3
0.5
0.4
0.4
0.5
0.2
0.2
0.2
0.8
TECHNITROL INC
ULTRATECH INC
0.7
0.2
TNS INC
EXCEL TECHNOLOGY INC
0.5
0.7
PLATO LEARNING INC
0.1
0.4
0.4
0.4
H.B. FULLER CO.
RELIANCE STEEL & ALUMINUM
0.5
0.2
GREIF INC-CL A
SPARTECH CORP
0.4
0.7
0.3
LCC INTERNATIONAL INC-CL A
0.1
0.3
0.3
CALIFORNIA WATER SERVICE GRP
NORTHWEST NATURAL GAS CO
0.3
0.6
Materials
ABITIBIBOWATER INC
GLATFELTER
SENSIENT TECHNOLOGIES CORP
Telecommunication Services
GENERAL COMMUNICATION -CL A
Utilities
AMERICAN STATES WATER CO
NEW JERSEY RESOURCES CORP
For institutional use only. Distribution to any other audience is prohibited.
IDACORP INC
SOUTH JERSEY INDS INC COM
0.3
0.4
Large Cap Growth Equity Review
Missionary Society of Connecticut
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Growth Equity
Total Performance as of December 31, 2007
4Q 2007
(%)
LATEST 12 MONTHS
(%)
SINCE INCEPTION1
(%)
Total Portfolio
1.09
16.51
12.20
Total Equity
1.26
16.95
12.57
Russell 1000 Growth Index
-0.76
11.82
8.69
Past performance is no guarantee of future results.
Returns shown are net of fees.
1 Inception date: January 1, 2005
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Growth Equity
Portfolio Performance as of December 31, 2007
18%
16.51
16%
14%
11.82
12%
10%
12.20
8.69
8%
6%
4%
2%
1.09
0%
-2%
-0.76
4Q 2007
1 Year
Missionary Society of Connecticut Large Cap Growth–Total Fund
Past performance is no guarantee of future results.
Returns shown are gross of fees.
1 Inception date: January 1, 2005
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
Since Inception¹
Russell 1000 Growth Index
Missionary Society of Connecticut Large Cap Growth Equity
Quarterly Equity Sector Weightings1 as of December 31, 2007
SEPTEMBER 30, 2007
DECEMBER 31, 2007
MISSIONARY SOCIETY OF CT
LARGE CAP GROWTH EQUITY
(%)
MISSIONARY SOCIETY OF CT
LARGE CAP GROWTH EQUITY
(%)
RUSSELL 1000
GROWTH INDEX
(%)
Consumer Discretionary
11.9
10.5
11.9
Consumer Staples
9.6
8.1
10.1
Energy
8.2
9.6
8.4
Financial
5.6
6.6
7.1
Health Care
17.1
18.2
15.8
Industrials
11.1
9.7
13.0
Information Technology
30.3
30.6
28.1
Materials
3.6
3.7
3.3
Telecom Services
2.5
2.1
0.7
Utilities
0.0
1.0
1.4
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Growth Equity
Top 10 Holdings1 as of December 31, 2007
HOLDINGS
PERCENTAGE OF EQUITY
Microsoft Corp
3.9
Apple Inc
2.9
Intel Corp
2.7
Google Inc-cl A
2.6
Cisco Systems Inc
2.4
Merck & Co. Inc.
2.1
Transocean Inc
2.0
Coca-Cola Co
2.0
Hewlett-Packard Co
1.9
Monsanto Co
1.7
TOTAL
24.2
1 Includes common stock only
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Large Cap Growth Equity
Equity Holdings Sector Matrix¹ as of December 31, 2007
SECTOR
PORTFOLIO HOLDINGS
%
%
%
PORTWT INDXWT
%
%
Consumer Discretionary
AMAZON COM INC
GAMESTOP CORP
NIKE INC
SONY CORP
1.3
1.1
0.8
0.9
BEST BUY INC
GOODYEAR TIRE & RUBR CO
NORDSTROM INC
VIACOM INC
1.2
0.4
0.3
1.6
EBAY INC
LAS VEGAS SANDS CORP
OFFICEMAX INC DELAWARE
1.3
0.9
0.6
10.4
11.9
1.1
0.8
1.2
CVS CAREMARK CORP
COSTCO WHSL CORP NEW
0.7
1.2
COCA COLA CO
KROGER CO
2.0
1.2
8.1
10.1
1.0
0.7
0.8
EXTERRAN HLDGS INC
SCHLUMBERGER LTD
XTO ENERGY INC
0.4
1.1
1.2
HALLIBURTON CO
SOUTHWESTERN ENERGY CO
TRANSOCEAN INC
1.4
1.0
2.0
9.6
8.4
1.4
1.7
AON CORP
GOLDMAN SACHS GROUP INC
0.8
1.2
ASSURANT INC
LAZARD LTD
0.6
0.9
6.6
7.1
0.9
0.8
0.8
0.8
1.2
0.5
0.9
ALLERGAN INC
BRISTOL MYERS SQUIBB CO
EXPRESS SCRIPTS INC
GILEAD SCIENCES INC
MERCK & CO INC
THERMO FISHER SCIENTIFIC CORP
0.7
0.9
0.8
0.9
2.1
1.0
BAXTER INTL INC
CIGNA CORP
GENENTECH INC
HOLOGIC INC
SCHERING PLOUGH CORP
WATERS CORP
1.3
1.1
0.6
1.0
0.8
1.0
18.2
15.8
0.7
1.1
0.9
1.4
CATERPILLAR INC
GOODRICH CORP
QUANTA SVCS INC
0.9
1.0
0.7
DEVRY INC DEL
HONEYWELL INTL INC
UNION PAC CORP
0.7
1.2
0.9
9.5
13.0
1.2
0.5
0.5
2.6
1.2
0.5
0.3
AKAMAI TECHNOLOGIES INC
CISCO SYS INC
EMC CORP
HEWLETT PACKARD CO
MICROSOFT CORP
ORACLE CORP
SALESFORCE COM INC
0.8
2.3
1.3
1.9
3.9
1.2
0.5
APPLE INC
CORNING INC
ELECTRONIC ARTS INC
INTEL CORP
NOKIA CORP
QUALCOMM INC
VMWARE INC
2.9
1.3
1.1
2.7
0.8
1.2
0.5
29.2
28.1
1.1
MONSANTO CO NEW
1.7
PRAXAIR INC
0.9
3.7
3.3
1.0
NII HLDGS INC
0.5
TIME WARNER TELECOM INC
0.6
2.1
0.7
1.0
FIRST SOLAR INC
0.9
SUNTECH PWR HLDGS CO LTD
0.7
2.6
1.4
Consumer Staple
AVON PRODS INC
COLGATE PALMOLIVE CO
WAL-MART STORES INC
Energy
DEVON ENERGY CORP NEW
HESS CORP
VALERO ENERGY CORP NEW
Financial
AMERICAN EXPRESS CO
CME GROUP INC
Health Care
ABBOTT LABS
BIOMARIN PHARMACEUTICAL INC
COVENTRY HEALTH CARE INC
GENZYME CORP
MCKESSON CORP
SHIRE PLC
COVIDIEN LTD
Industrials
APOLLO GROUP INC
GENERAL ELEC CO
MCDERMOTT INTL INC
UNITED TECHNOLOGIES CORP
Information Technology
ADOBE SYS INC
CIENA CORP
DST SYS INC DEL
GOOGLE INC
INTERNATIONAL BUSINESS MACHS
NVIDIA CORP
RIVERBED TECHNOLOGY INC
Materials
FREEPORT-MCMORAN COPPER & GOLD
Telecommunication Services
AMERICAN TOWER CORP
Utilities
ENTERGY CORP NEW
For institutional use only. Distribution to any other audience is prohibited.
Fixed Income Review
Missionary Society of Connecticut Balanced Fund
For institutional use only. Distribution to any other audience is prohibited.
Management Team
Brian J. Drainville, CFA; Director and Senior Fixed Income Portfolio Manager
Brian Drainville, is a director and senior portfolio manager for Core Fixed Income strategy team at Columbia Management.
He joined the firm in 1996 and worked the three prior years as an equities and options operations manager at Barry,
Murphy and Co. Mr. Drainville earned his BA degree from the College of the Holy Cross. He is a member of the CFA
Institute, the Fixed Income Management Society of Boston and the Bond Analysts Society of Boston.
Alan M. Erickson, CFA; Director and Senior Fixed Income Portfolio Manager
Alan Erickson is a Director and senior fixed income portfolio manager. He joined the firm in 1990 after receiving his BA
degree from Bates College. Mr. Erickson has earned the NASD Series 65 registration and is a member of the CFA Institute
and the Boston Security Analysts Society.
For institutional use only. Distribution to any other audience is prohibited.
Fixed Income Review
Missionary Society of Connecticut
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Fixed Income
Portfolio Performance as of December 31, 2007
8%
6.96
7%
7.25
6.14
5.74
6%
5%
4.56
4.13
4.44
4.20
4.42
6.01
5.97
4.44
4%
3%
2.60
3.00
3.10
2%
1%
0%
Q4 2007
1 Year
Missionary Society (Fixed Income)
3 Years
5 Years
Lehman Aggregate Bond Index
10 Years
Lehman Government/Credit Index
Q4 2007
1 YEAR
3 YEARS
5 YEARS
10 YEARS
Missionary Society of CT (Fixed Income)
2.60
5.74
4.13
4.20
6.14
Lehman Aggregate Bond Index
3.00
6.96
4.56
4.42
5.97
Lehman Government/Credit Index
3.10
7.25
4.44
4.44
6.01
Past performance is no guarantee of future results.
Returns shown are gross of fees.
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Fixed Income
Portfolio Characteristics as of December 31, 2007
Portfolio Diversification
Munis Cash
Industrial <1% <1%
14%
Utility
6%
Quality Characteristics
BBB
11%
Treasury
18%
A
15%
Agencies
7%
Non U.S.
4%
Financial
16%
ABS
11%
AAA¹
59%
AA
15%
MBS
24%
Portfolio Statistics
MISSIONARY
SOCIETY OF CT
LEHMAN AGGREGATE
BOND INDEX
LEHMAN GOVT/
CREDIT INDEX
Yield to Maturity
5.13%
4.88%
4.47%
Average Maturity
8.14 Years
6.67 Years
8.12 Years
Effective Duration
5.37 Years
4.63 Years
5.34 Years
AA+
AAA
AA+
Average Quality
1 Includes U.S. Treasuries, federal agencies, cash and cash equivalents.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Fixed Income
Duration Analysis as of December 31, 2007
40%
35%
34.9
33.7
31.9
30%
25%
23.1
21.1
20%
18.1
17.9
17.8
19.2
18.9
16.1
15%
11.4
13.2
12.0
10.7
10%
5%
0%
0–3 Years
3–4 Years
Missionary Society (Fixed Income)
For institutional use only. Distribution to any other audience is prohibited.
4–6 Years
Lehman Aggregate Bond Index
6–8 Years
8+ Years
Lehman Government/Credit Index
Missionary Society of Connecticut Fixed Income
Sector Allocation as of December 31, 2007
50%
43.7
45%
41.1
40%
35%
30%
25%
20%
23.9
22.8
19.5
17.5
17.6
16.0
14.3
13.9
15%
10.8
10%
10.8
9.7
7.7
6.6
4.2
5%
2.4
4.3
0.0
0%
Treasury
Agencies
Non U.S.
MBS
Missionary Society (Fixed Income)
For institutional use only. Distribution to any other audience is prohibited.
6.1
0.9 0.0
ABS
3.7
2.0
Financial
Lehman Aggregate Bond Index
Utility
Industrial
0.2 0.0 0.0
0.4 0.0 0.0
Municipals
Cash
Lehman Government/Credit Index
Missionary Society of Connecticut Fixed Income
Quality Ratings as of December 31, 2007
79.1
80%
70%
60%
62.6
60.0
50%
40%
30%
20%
14.8
14.6
8.9
10%
14.7
8.2
5.0
13.8
10.6
7.7
0%
AAA¹
AA
Missionary Society of CT (Fixed Income)
Lehman Government/Credit Index
1 Includes U.S. Treasuries, federal agencies, cash and cash equivalents.
For institutional use only. Distribution to any other audience is prohibited.
A
Lehman Aggretate Bond Index
BBB
Bond Market Review
4th Quarter 2007

The Fed cut the Fed Funds Rate by a total of 1.00% in the last four months of the year, in
response to what it perceived as tightening financial conditions and growing downside
economic risks. The Fed will ease monetary policy further and may take other actions
targeting improved liquidity over the next several months.

The total return of the Lehman U.S. Credit Index was 2.19% in the fourth quarter, posting
positive returns as interest rates fell and bond prices rose. Risk premiums on corporate bonds
relative to Treasuries – as measured by option-adjusted spreads (OAS) of the Credit Index –
increased significantly, by 49bps over the quarter, to yield 181bps over Treasuries at year-end.
This resulted in one of the worst quarters for the credit index in several years.

The U.S. Securitized Index produced a total return on 2.88% in the 4th quarter, as interest
rates dropped and prices generally rose on issues in the sector. Of the three major
components of the Securitized Index, MBS produced a total return of 3.06% in the quarter.
CMBS securities rose 2.25% in the quarter while ABS securities posted a decline of (0.76%) in
the quarter.

The J.P. Morgan Global High-Yield Index was down -0.86% over the quarter, on a total
return basis.

The total return of the Citigroup Non-U.S. World Government Bond Index was 3.91%, in
U.S. dollar terms, in the fourth quarter, as the dollar continued to depreciate The J.P.
Morgan Emerging Market Bond Global Diversified Bond Index was up 2.80%.
Bond Indices—Total Return
4th Quarter 2007
Citi Non-US WGBI
LB U.S. Gov/Credit
LB U.S. Mortgage-Backed Securities
LB U.S. Aggregate
LB U.S. Gov/Credit-Intermed
LB CMBS: Erisa Eligible
LB Credit
ML U.S. Corp/Gov-1-3 Year
LB U.S. Asset-Backed Securities -0.76%
JPM Global High Yield -0.86%
-2.0% -1.0% 0.0%
3.91%
3.10%
3.06%
3.00%
2.90%
2.25%
2.19%
2.15%
1.0% 2.0% 3.0% 4.0%
Sources: Citigroup, J.P. Morgan, Lehman Live, Merrill Lynch
Lehman Bond Indices—Excess Return
4th Quarter 2007
U.S. Agency
U.S. Mortgage Backed Securities
U.S. Credit Aaa
U.S. Credit Aa
CMBS: Erisa Eligible
U.S. Credit
U.S. Corporate Investment Grade
U.S. Credit A
Emerging Markets (U.S. Dollar)
U.S. Credit Baa
Asset-Backed Securities
U.S. Corporate High Yield
-5.38%
-0.07%
-0.21%
-0.63%
-1.96%
-2.17%
-2.36%
-2.62%
-2.67%
-2.71%
-2.86%
-4.08%
-6.0% -5.0% -4.0% -3.0% -2.0% -1.0%
Past performance is no guarantee of future results.
Source: Lehman Live
For institutional use only. Distribution to any other audience is prohibited.
0.0%
Lehman Brothers Indices Excess Returns
Year-to-Date December 31, 2007
U.S. Agency Intermediate
U.S. Agency
U.S. Agency Long
U.S. Credit Aaa
Intermediate U.S. Government/Credit
U.S. Aggregate: Sovereign
U.S. Mortgage Backed Securities
Intermediate U.S. Aggregate
U.S. Government/Credit
U.S. Aggregate
Telecommunications
Invest. Grade: Communications
Invest. Grade: Consumer Noncyclical
Invest. Grade: Energy
Invest. Grade: Industrial
Invest. Grade: Capital Goods
U.S. Intermediate Credit
U.S. Credit Aa
CMBS: Erisa Eligible
Emerging Markets (U.S. Dollar)
U.S. Credit
Invest. Grade: Utility
Invest. Grade: Basic Industry
U.S. Credit Baa
U.S. Corporate Investment Grade
Invest. Grade: Consumer Cyclical
U.S. Credit A
Asset-Backed Securities
U.S. Long Credit
Invest. Grade: Financial Institutions
U.S. Corporate High Yield
-9.0%
Source: Lehman Live
For institutional use only. Distribution to any other audience is prohibited.
-0.48%
-0.52%
-0.97%
-1.42%
-1.61%
-1.76%
-1.77%
-1.89%
-1.97%
-2.06%
-2.83%
-2.84%
-3.47%
-3.56%
-3.83%
-3.87%
-3.99%
-4.17%
-4.35%
-4.57%
-4.64%
-4.81%
-4.83%
-5.16%
-5.23%
-5.23%
-5.45%
-6.34%
-6.55%
-6.87%
-7.77%
-8.0%
-7.0%
-6.0%
-5.0%
-4.0%
Past performance is no guarantee of future results.
-3.0%
-2.0%
-1.0%
0.0%
Economic Review
For institutional use only. Distribution to any other audience is prohibited.
Q4 2007 Market Overview
Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that the forecasts will come to pass. These
materials are provided for informational purposes only and should not be used or construed as a recommendation of any security or sector. The views and opinions expressed
are those of the portfolio managers and analysts of the affiliated advisors of Columbia Management Group, are subject to change without notice at any time, may not come to
pass and may differ from views expressed by other Columbia Management associates or other divisions of Bank of America. This information does not constitute investment
advice and is issued without regard to specific investment objectives or the financial situation of any particular recipient. Past performance is no guarantee of future results.
Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation.
Columbia Management entities furnish investment management services and products for institutional and individual investors.
For institutional use only. Distribution to any other audience is prohibited.
Macroeconomic Review
4th Quarter 2007

Economic growth is expected to remain below trend with year-over-year GDP close to 1.0%. Tighter
credit conditions and the impact of the liquidity crisis add to the downside risks. Solid global growth
and a relaxation in monetary policy may allow the economy to avoid a recession, but a downturn in
the labor markets and consumer spending are significant risks. At best, growth will likely be soft
through mid-year 2008.

Residential investment remained weak on the back of declining housing starts, soft home sales and a
huge inventory overhang. Falling home prices and tighter lending standards by financial institutions
have impacted home buying intentions and will further reduce demand. The housing recession should
remain a drag on growth and a bottom in activity is expected in late 2008 or 2009.

Orders for durable goods are still decelerating, business sentiment remains muted, and business
spending is light despite the recent pickup. The mix of growth appears to have rotated to trade and
away from domestic demand. Global demand is boosting exports, primarily from developing
economies. 2008 will likely test decoupling theories and the ability of non-U.S. demand to maintain
momentum.

Consumption growth has cooled, as higher energy prices and falling sentiment have weighed on
consumer spending. Slower employment gains are in play, but wage and income growth appear to
support modest growth in consumption. Non-residential construction activity has some momentum,
providing a cushion against the weakening housing sector. These, together with an improvement in
our net export position, a function of the weaker dollar, should help offset weakness in domestic
demand.
Source: National Association of Realtors
Source: Bureau of Labor Statistics
For institutional use only. Distribution to any other audience is prohibited.
U.S. Treasury Yield Curve Review
As of December 31, 2007
Trailing 12-Month
3 Months
5.25%
5.25%
4.75%
4.75%
4.25%
4.25%
3.75%
3.75%
3.25%
3.25%
2.75%
2.75%
2.25%
3 6 2
Mo. Mo. Yr.
5
Yr.
10
Yr.
9/30/07
30
Yr.
2.25%
3 6 2
Mo. Mo. Yr.
12/31/07
5
Yr.
10
Yr.
12/31/06
U.S. Treasury Yields: 3 Month Change
9/30/07
12/31/07
Change
9/30/07
12/31/07
Change
30
Yr.
12/31/07
U.S.
U.S.
Treasury
Treasury
Yields:
Yields:Trailing
Trailing
12-Month
12-Month
Change
Change
12/31/06
12/31/06
12/31/07
Change
3 Month
3.796
3.237
(0.559)
3 Month
5.006
3.237
(1.769)
6 Month
4.075
3.389
(0.686)
6 Month
5.080
3.389
(1.691)
2 Year
3.984
3.047
(0.937)
2 Year
4.808
3.047
(1.761)
5 Year
4.243
3.440
(0.803)
5 Year
4.692
3.440
(1.252)
10 Year
4.587
4.023
(0.564)
10 Year
4.702
4.023
(0.679)
30 Year
4.836
4.452
(0.384)
30 Year
4.810
4.452
(0.358)
Past performance is no guarantee of future results.
Source: Bloomberg
A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type.
A normal yield curve is upward sloping, with short-term rates lower than long-term rates.
For institutional use only. Distribution to any other audience is prohibited.
Banc of America Investment Advisors
Investment Strategies Group Forecasts Through 2008
2007
Q3a
2007
Q4e
2008
Q1f
2008
Q2f
2008
Q3f
2008
Q4f
2007e
2008f
Real GDP
(Annual rate, percent change)
4.9
1.6
1.2
2.3
2.7
3.1
2.3
2.4
CPI
(Annual rate, percent change)
1.9
4.2
3.2
2.1
2.1
2.2
2.9
3.0
Personal Consumption Price Index less
food and energy (Annual rate, percent
change)
2.0
2.7
2.0
1.8
1.8
1.9
2.1
2.0
S&P 500 Operating Earnings
(Dollars per share)
21.70
20.15
21.00
23.00
25.50
26.00
89.07
95.50
Federal Funds Rate
(End of period, percent)
4.75
4.25
2.75
2.50
2.50
2.50
4.75
2.50
10-Year Treasury Note Yield1
(End of period, percent)
4.59
4.04
3.75
3.80
4.00
4.20
4.04
4.20
Euro
(End of period, dollars per euro)
1.43
1.46
1.47
1.44
1.42
1.41
1.46
1.41
Yen
(End of period, yen per dollar)
115
112
109
113
111
110
112
110
*Source: Banc of America Investment Advisors and the Global Wealth & Investment Management Investment Strategies Group forecasts. These forecasts may or may not be consistent
with the expectations of Columbia Management or Columbia Management’s Fixed Income team. Private Bank and Banc of America Investment Services, Inc. associates may use this
presentation to address the potential implications of this guidance for individual financial strategies. Private Bank and Banc of America Investment Services, Inc. associates should not
present themselves as economists or content experts, but rather as professionals who have access to Bank of America affiliated strategists. Forecasts and opinions contained herein are
to be attributed solely to the Investment Strategies Group, with no extrapolation of content by the GWIM associate. Questions raised as a result of this material should be considered
opportunities to promote access to the intellectual capital of the Investment Strategies Group. Consult with this team of strategists to obtain answers to your client/prospect questions.
For questions related to these compliance requirements, contact your manager or market director.
1 Used solely as a benchmark for long-term interest rates a = actual; e = estimated; f = forecast As of week of January 28, 2008.
For institutional use only. Distribution to any other audience is prohibited.
Appendix
For institutional use only. Distribution to any other audience is prohibited.
Appendix
For institutional use only. Distribution to any other audience is prohibited.
Index Definitions
CITI NON-US WGBI (World Gov’t Bond Index)
Definition - The Non- US WGBI is a market-capitalization-weighted benchmark that tracks the performance of the 22 government bond markets [as of November 2007] of Australia,
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Malaysia, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden,
Switzerland, and the United Kingdom.
JP MORGAN DEVELOPED BB HIGH YIELD
Definition – The JP Morgan Developed BB High Yield Index is designed to mirror the investable universe of the US-dollar developed, BB-rated, high yield corporate debt market.
MERRILL LYNCH CORP/GOV 1-3 YEAR
Definition - The Merrill Lynch 1-3 Year US Corporate & Government Index is a subset of The Merrill Lynch US Corporate & Government Index including all securities with a maturity
greater than or equal to 1 year and less than 3 years.
LEHMAN INDEX DEFINITIONS
3-5 YEAR
Description - This index is the 3-5 Yr component of the U.S. Aggregate index.
Definition (US Aggregate) - The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S.
investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These
major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
ASSET BACKED SECURITIES
Description - This index is the ABS component of the U.S. Aggregate index.
The Asset-Backed Securities (ABS) Index has five subsectors:
• Credit and charge cards
• Autos
• Home equity loans
• Utility
• Manufactured Housing
The index includes pass-through, bullet, and controlled amortization structures. The ABS Index includes only the senior class of each ABS issue and the ERISA-eligible B and C
tranche.
CMBS – ERISA ELIGIBLE
Description - This index is the CMBS component of the U.S. Aggregate index.
The Lehman Brothers CMBS ERISA-Eligible Index is the ERISA-eligible component of the Lehman Brothers CMBS Index. This index, which includes investment grade securities
that are ERISA eligible under the underwriter’s exemption, is the only CMBS sector that is included in the U.S. Aggregate Index.
EMERGING MARKETS (US DOLLAR)
Description - The Lehman Brothers Emerging Markets Index includes USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa,
and Asia. As with other fixed income benchmarks provided by Lehman Brothers, the index is rules-based, which allows for an unbiased view of the marketplace and easy
replicability.
INVESTMENT GRADE – BASIC INDUSTRY
Description - This index is the Basic component of the Invest. Grade: Industrial index.
INVESTMENT GRADE – CAPITAL GOODS
Description – This index is the Capital Goods component of the Invest. Grade: Industrial index.
For institutional use only. Distribution to any other audience is prohibited.
Index Definitions
INVESTMENT GRADE – COMMUNICATIONS
Description - This index is the Communications component of the Invest. Grade: Industrial index.
Definition (Investment Grade-Industrial) - Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
INVESTMENT GRADE – CONSUMER CYCLICALS
Description - This index is the Consumer Cyclical component of the Invest. Grade: Industrial index.
Definition (Investment Grade-Industrial) Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
INVESTMENT GRADE – CONSUMER NON-CYCLICAL
Description - This index is the Consumer Non-cyclical component of the Invest. Grade: Industrial index.
Definition (Investment Grade-Industrial) - Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
INVESTMENT GRADE - ENERGY
Description - This index is the Energy component of the Invest. Grade: Industrial index.
Definition (Investment Grade-Industrial) - Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
INVESTMENT GRADE – FINANCIAL INSTITUTIONS
Description - This index is the Financial Institutions component of the U.S. Credit index.
Definition - Publicly issued investment-grade U.S. corporate bonds in the Finance sector.
INVESTMENT GRADE – INDUSTRIAL
Description - This index is the Industrial component of the U.S. Credit index.
Definition - Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
INVESTMENT GRADE - UTILITY
Description - This index is the Utility component of the U.S. Credit index.
Definition - Publicly issued investment-grade U.S. corporate bonds in the Utility sector.
TELECOMMUNICATIONS
Description - This index is the Telecommunications component of the Invest. Grade: Communications index.
Definition (Investment Grade-Industrial) - Publicly issued investment-grade U.S. corporate bonds in the Industrial sector.
US AGENCY
Description - This index is the U.S. Agency component of the U.S. Government/Credit index.
US AGENCY INTERMEDIATE
Description - This index is the Intermediate component of the U.S. Agency index.
Definition - Securities in the intermediate maturity range of the U.S. Agency Index.
The U.S. Agency Index represents public obligations of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S.
Government.
US AGENCY LONG
Description - This index is the Long component of the U.S. Agency index
Definition - Securities in the long maturity range of the U.S. Agency Index.
The U.S. Agency Index represents public obligations of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S.
Government.
For institutional use only. Distribution to any other audience is prohibited.
Index Definitions
US AGGREGATE
Description - The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment
grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors
are subdivided into more specific indices that are calculated and reported on a regular basis.
US AGGREGATE - INTERMEDIATE
Description - This index is the Intermediate component of the U.S. Aggregate index.
Definition - Securities in the intermediate maturity range of the Lehman Brothers Aggregate Index.
The Aggregate Index represents securities that are U.S. domestic, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index
components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices
that are calculated and reported on a regular basis.
US AGGREGATE - SOVEREIGN
Description - This index is the Sovereign component of the Non-Corporate Investment Grade index.
Definition (US Credit) Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US CORPORATE – HIGH YIELD
Description - The Lehman Brothers High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from
countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries
are included. Original issue zeroes, step-up coupon structures, and 144-As are also included.
US CORPORATE INVESTMENT GRADE
Description - This index is the Corporate component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US CREDIT
Description - This index is the U.S. Credit component of the U.S. Government/Credit index.
Definition - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds
must be SEC-registered.
US CREDIT – Aaa
Description - This index is the Aaa component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US CREDIT - Aa
Description - This index is the Aa component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US CREDIT - A
Description - This index is the A component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US CREDIT - Baa
Description - This index is the Baa component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
For institutional use only. Distribution to any other audience is prohibited.
Index Definitions
US GOVERNMENT
Description - This index is the U.S. Government component of the U.S. Government/Credit index.
Definition - Securities issued by the U.S. Government (i.e., securities in the Treasury and Agency Indices).
US GOVERNMENT - INTERMEDIATE
Description - This index is the Intermediate component of the U.S. Government index.
US GOVERNMENT / CREDIT
Description – This index is the U.S. Gov/Credit component of the U.S. Aggregate index.
Definition - The Government/Credit Index includes securities in the Government and Credit Indices.
The Government Index includes treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of
U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government).
The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements.
US GOVERNMENT/CREDIT - INTERMEDIATE
Description – This index is the Intermediate component of the U.S. Government/Credit index.
Definition – Securities in the intermediate maturity range of the Government/Credit Index.
US INTERMEDIATE CREDIT
Description - This index is the Intermediate component of the U.S. Credit index.
Definition – Securities in the intermediate maturity range of the U.S. Credit Index.
US LONG CREDIT
Description - This index is the Long component of the U.S. Credit index.
Definition (US Credit) - Publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC-registered.
US MORTGAGE BACKED SECURITIES
Description - This index is the U.S. MBS component of the U.S. Aggregate index.
Definition - The MBS Index covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The MBS Index is formed
by grouping the universe of over 600,000 individual fixed rate MBS pools into approximately 3,500 generic aggregates. These aggregates are defined according to the following
parameters:
• Agency (GNMA, FNMA, FHLMC)
• Program (30-year, 15-year, balloon, GPM)
• Pass-through coupon (6.0%, 6.5%, . . ., etc.)
• Origination year (1987, 1988, . . ., etc.)
In other words, each aggregate is a proxy for the outstanding pools for a given agency, program, issue year, and coupon. The index maturity and liquidity criteria are then applied to
these aggregates to determine which qualify for inclusion in the index. About 600 of these generic aggregates meet the criteria.
The aggregates included in the index are priced daily using a matrix pricing routine based on trader price quotations by agency, program, coupon, and degree of seasoning.
US TREASURY
Description - This index is the U.S. Treasury component of the U.S. Government index.
Definition - Public obligations of the U.S. Treasury with a remaining maturity of one year or more.
For institutional use only. Distribution to any other audience is prohibited.
Missionary Society of Connecticut Combined Funds
Total Performance as of December 31, 2007
MISSIONARY SOCIETY COMBINED
Selected Period Performance
December 31, 2007
Sector
Cash and Cash Equivalent
90 Day TBill
Market Value
3 Months
Year
to Date
(6 Months)
2,454,772
Fixed Income Mgd
Lehman Aggregate Bond
Lehman Govt/Credit
22,950,661
Equity-Mgd
Com Stk
S&P 500
Russell 1000
Russell 1000 Growth
Russell 1000 Value
Russell 2000
43,219,980
42,603,510
Total Account-All Assets
Total-All Assets Net of Fees
68,625,413
68,625,413
Past performance is no guarantee of future results.
Benchmark returns are shown from the first day of the account inception month.
For institutional use only. Distribution to any other audience is prohibited.
12 Months
36 Months
60 Months
Inception
to Date
120 Months (384 Months)