JEWISH COMMUNITY INVESTMENT FUND formerly the Consolidated Investment Fund for the quarter ending, September 30, 2014 CHAIRMAN’S REPORT WHAT IS THE JCIF? Overall and in keeping with expectations, the Jewish The Jewish Community Investment Fund (JCIF) is a Maryland business trust. The Associated Jewish Charities of Baltimore (AJC) serves as the sole trustee. Prior to 2013, the program was part of the AJC and called the CIF. When the board of the AJC voted to create the JCIF, it was done to separate the endowment assets from other assets (e.g. real estate) of the AJC. For more information, contact Michael Dye at [email protected]. Community investment Fund (JCIF) was down 1.6% for the quarter, which beat our benchmark by 40 basis points. The portfolio is up 3.6% for the year-to-date, beating our benchmark by 20 basis points. The fund is up 9.5% for the trailing one-year, also beating our benchmark by 140 basis David Greenberg Chair, IMC points. The financial markets went through a correction in September which removed most of the gains made during July and August. Commodities, particularly energy, prices were down and as a result the real assets portfolio suffered a drop for the quarter. We continue to believe that the U.S. is a good place to invest and continue our commitment to be overweight in U.S. equities at the expense of real assets and fixed income. To broaden our exposure internationally, we recently added two new international managers to the portfolio. One focuses on small cap companies and the other looks for growth opportunities. Most of the funding for these two investments came from another international manager and as a result, this had little effect on the asset allocation. The JCIF is invested for the long-term and we do not like to make too many changes at any one time. As a result, it may look like we are tinkering at the edges, but we spend a great deal of time reviewing our managers and when changes are made, it is to augment the portfolio and not disrupt it. We also do not focus too much on quarterly returns. It is nice to celebrate the good quarters, but we must recognize that negative returns do occur and as long as our managers perform as expected, we can continue to focus on what we do best, finding good managers to help the JCIF grow. WHY IS THE ASSOCIATED IN THE BUSINESS OF INVESTING FOR AND IN THE COMMUNITY? Part of the mission of The Associated is to aid other Jewish organizations where possible. In furtherance of that mission, The Associated established the JCIF (formerly the CIF) in 1988 with the purpose to pool and invest the assets of The Associated and its agencies; supporting foundations, donor advised funds; and other Jewish charitable organizations. The goal of the JCIF is to obtain superior investment results through diversification and better access to investment managers. The ability to pool assets means access to better managers and over time an expectation of better returns. More value means more dollars for the community. JEWISH COMMUNITY INVESTMENT FUND AS OF SEPTEMBER 30, 2014 FUND VALUE $ 615,318,312 PERFORMANCE QTR JCIF 1-year 3-years 5-years 10-years -1.6% 3.6% 9.5%13.5%10.2% 8.4% CPI-U + 5% 75/25* CYTD 1.1%5.8%6.6%6.6%7.0%7.3% -1.6%4.2%9.9% 13.5%9.2%7.3% PERFORMANCE BY SECTOR Asset Value # Domestic % of JCIF QTR CYTD 1-year 3-years 5-years 10-years 125.620.4% 0.9% 7.4%18.2%24.8%17.6%10.5% Global 86.614.1% -1.1% 3.0%13.0%25.3% 18.2% International 55.39.0%-5.0%0.8%5.7% 14.5%8.2%7.4% Emerging Markets 42.76.9%-2.0%3.7%5.5%9.3% Fixed Income & Cash 68.3 Marketable Alternatives 11.1% 0.1%2.8%2.3% 7.1% 0.9%2.9%4.9% 166.127.0% -1.6%3.2%9.0% 12.3%9.4%9.0% Private Equity 33.3 5.4%3.2% 10.0% 11.5%10.7%8.6% Real Assets 37.4 6.1% -10.3%0.4%0.0% 2.0%2.9%5.1% # in $ Millions $ MILLIONS PERFORMANCE OVER TIME Growth of the JCIF (solid blue line) compared to the investable benchmark (red dashed line) and CPI-U +5% (green dashed line) since March 2009, all three started at $308 Million FOR MORE INFORMATION Michael Dye VP - Investments and Risk Management 410-369-9213 [email protected] 101 W. Mount Royal Ave. Baltimore, MD 21201 INVESTMENT TEAM The JCIF is managed by the Investment Management Committee consisting of 25 volunteer leaders with extensive investment experience, led by David Greenberg and aided by four sub-committees, responsible for manager review and oversight. Dayto-day operations are handled by the professional staff of The Associated and aided by investment advisor, Cambridge Associates, and custodian, Wilmington Trust (fka M&T Bank). The JCIF is audited annually by McGladrey, LLC.