Quarterly Investment Performance Report
The purpose of this report is to help you evaluate the recent performance of General Board investment funds. It also compares the investment performance for each of the funds to the performance of similar mutual funds monitored by Lipper, a leading provider of investment data and analysis of mutual funds. Returns reported for all General Board funds are net of all investment management and fund administration fees and expenses.
Performance for the Second Quarter 2010
Fund and Benchmark Performance for Periods Ended June 30, 2010,
Net of Fees
| General Board Funds |
Quarter |
YTD |
1 Year |
3 Years |
5 Years |
10 Years |
Inception |
| Multiple Asset Fund 1 |
-6.1% |
-2.5% |
13.8% |
-2.9% |
3.7% |
N/A |
5.4% |
| Custom Benchmark 2 |
-6.4% |
-2.9% |
13.8% |
-3.6% |
2.7% |
N/A |
4.5% |
| Domestic Bond Fund |
1.9% |
4.7% |
14.4% |
8.4% |
6.5% |
6.8% |
6.4% |
| Barclays Capital U.S. Universal (blend) 3 |
3.3% |
5.6% |
12.2% |
6.6% |
5.1% |
6.2% |
5.9% |
| Inflation Protection Fund 4 |
1.7% |
2.7% |
10.5% |
5.6% |
3.9% |
N/A |
4.7% |
| BC U.S. Gov't Infln-Lnkd Bond Index |
3.9% |
4.4% |
9.5% |
7.6% |
5.0% |
N/A |
5.6% |
| Stable Value Fund 5 |
0.9% |
1.8% |
3.7% |
4.1% |
4.2% |
N/A |
3.9% |
| BofA ML Wrapped 1-5 Year Corp/Gov't Index |
0.8% |
1.6% |
3.3% |
3.7% |
3.8% |
N/A |
3.6% |
| Balanced Social Values Plus Fund |
-6.2% |
-2.5% |
12.2% |
-1.4% |
2.3% |
1.3% |
3.2% |
| Custom Benchmark 6 |
-6.3% |
-3.0% |
12.0% |
-1.8% |
2.8% |
2.1% |
4.3% |
| Domestic Stock Fund |
-10.1% |
-5.2% |
12.9% |
-9.0% |
-0.1% |
-0.8% |
2.7% |
| Russell 3000 Index |
-11.3% |
-6.0% |
15.7% |
-9.5% |
-0.5% |
-0.9% |
2.6% |
| International Stock Fund |
-10.7% |
-8.0% |
16.6% |
-8.9% |
5.2% |
0.8% |
6.1% |
| MSCI Blend 7 |
-12.2% |
-10.4% |
11.5% |
-10.3% |
3.4% |
1.4% |
4.2% |
The charts below compare the performance of each of the General Board’s funds (except for the Stable Value Fund, for which there are no comparable data) to similar funds reported in the Lipper universe of mutual fund returns. The row titled “Number of Funds” indicates how many mutual funds similar to the General Board’s fund appear in Lipper’s database. The row titled “Rank” indicates the percentile rank of the General Board’s fund when compared with similar mutual funds. For example, a rank of 30% means that the General Board’s fund performed in the top 30% of a universe of similar mutual funds.
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Recent and Long-Term Returns: Inflation Protection Fund Compared with the Lipper Universe
The Inflation Protection Fund generated gains of 1.7% for the quarter but underperformed its benchmark by a margin of 2.2%. The fund’s three diversifying strategies—commodities, inflation-linked bonds from developing countries and global inflation-linked bonds—all detracted from performance as U.S. Treasury Inflation Protected Securities benefitted from investors’ declining appetites for risk.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
Inception |
| Inflation Protection Fund |
1.7% |
2.7% |
10.5% |
5.6% |
3.9% |
4.7% |
| Barclays Capital U.S. Govt. Inflation Linked Bond Index |
3.9% |
4.4% |
9.5% |
7.6% |
5.0% |
5.6% |
| Lipper Inflation Protection Funds Universe* |
3.7% |
4.2% |
9.4% |
7.0% |
4.5% |
5.1% |
| Number of Funds |
156 |
136 |
128 |
118 |
93 |
48 |
| Rank |
91% |
93% |
20% |
81% |
72% |
62% |
* The comparison universe is derived from Wilshire’s Lipper predefined “Objectives” of “TIPS Funds.”
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Recent and Long-Term Returns: Domestic Bond Fund Compared with the Lipper Universe
The Domestic Bond Fund generated a positive return of 1.9% for the quarter but underperformed its benchmark by a margin of 1.4%. The positive social purpose lending strategy generated the highest absolute return and contributed the most to performance. The global bond and developing-market bond strategies, which hold securities denominated in foreign currencies, detracted the most from performance due largely to the strength of the dollar.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
10 Years |
| Domestic Bond Fund |
1.9% |
4.7% |
14.4% |
8.4% |
6.5% |
6.8% |
| Blended Bond Index * |
3.3% |
5.6% |
12.2% |
6.6% |
5.1% |
6.2% |
| Lipper Bond Funds Universe ** |
2.6% |
4.9% |
11.6% |
6.0% |
4.5% |
5.5% |
| Number of Funds |
1,335 |
1,311 |
1,255 |
1,116 |
939 |
533 |
| Rank |
66% |
57% |
28% |
10% |
5% |
11% |
* The benchmark for the Domestic Bond Fund became the Lehman U.S. Universal Index ex-MBS on January 1, 2006, and in September 2008 was renamed the Barclays U.S. Universal Index ex-MBS. Prior to this date, the benchmark had been the Lehman Aggregate Bond Index from January 1, 2003 through December 31, 2005, and the Lehman Intermediate Aggregate Bond Index prior to January 1, 2003. The benchmark data reported above are blends of the three benchmarks based on the period for which each respective benchmark applies.
** Five of Wilshire Compass’s predefined universes were combined to assemble the Bond Funds Universe. These universes consisted of mutual funds found in the Lipper “Classification” of “A-Rated Corporate Debt,” “BBB-Rated Corporate Debt,” “Intermediate Investment-Grade Debt,” “Short-Intermediate Investment-Grade Debt” and “Short Investment-Grade Debt.”
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Recent and Long-Term Returns: Multiple Asset Fund Compared with the Lipper Universe
The Multiple Asset Fund represents a prespecified mix of four of the General Board funds with a target allocation of 45% Domestic Stock Fund, 20% International Stock Fund, 25% Domestic Bond Fund and 10% Inflation Protection Fund. The results of the Multiple Asset Fund are directly attributable to the performance of the four composite funds relative to their benchmarks for the quarter and year-to-date period.
For the quarter ending June 30, 2010, the Multiple Asset Fund marginally outperformed its composite benchmark principally due to the better-than-benchmark performance of the International Stock Fund and Domestic Stock Fund. However, this outperformance was partially offset by the less-than-benchmark performance of the Domestic Bond Fund and Inflation Protection Fund.
Fund inception for the Multiple Asset Fund is May 1, 2002.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
Inception |
| Multiple Asset Fund |
-6.1% |
-2.5% |
13.8% |
-2.9% |
3.7% |
5.4% |
| Custom Benchmark * |
-6.4% |
-2.9% |
13.8% |
-3.6% |
2.7% |
4.5% |
| Lipper Multiple Asset Fund Universe** |
-5.9% |
-2.6% |
13.0% |
-3.6% |
1.6% |
3.0% |
| Number of Funds |
2,018 |
1,989 |
1,945 |
1,718 |
1,198 |
626 |
| Rank |
53% |
49% |
38% |
39% |
8% |
4% |
* On January 1, 2006, the benchmark for the Multiple Asset Fund became 45% Russell 3000 Index, 20% MSCI All Country World Index ex USA, 25% Lehman U.S. Universal Index ex-Mortgage Backed Securities, and 10% Barclays Capital U.S. Government Inflation Linked Bond Index. On January 1, 2008, the MSCI All Country World Index ex USA was replaced with the MSCI All Country World Index ex USA IMI. In September 2008, the Lehman U.S. Universal Index ex-Mortgage Backed Securities was renamed the Barclays Capital U.S. Universal Index ex-Mortgage Backed Securities. Prior to 2006, the benchmark had been 47% Russell 3000 Index, 15% MSCI EAFE Index, 3% MSCI Emerging Markets Index, and 35% Lehman U.S. Universal Index. The benchmark data reported above are blends of the two benchmarks based on the period for which the respective benchmark applies.
** The comparison universe is derived from the Wilshire Compass Lipper “Asset Class” of “Balanced” mutual funds.
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Recent and Long-Term Returns: Balanced Social Values Fund Compared with the Lipper Universe
For the second quarter of 2010, the Balanced Social Values Plus Fund declined 6.2%, modestly outperforming its benchmark by a margin of 0.1%. This placed the fund above the median of all balanced funds in its universe for the quarter.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
10 Years |
| Balanced Social Values Plus Fund |
-6.2% |
-2.5% |
12.2% |
-1.4% |
2.3% |
1.3% |
| Custom Benchmark* |
-6.3% |
-3.0% |
12.0% |
-1.8% |
2.8% |
2.1% |
| Lipper Balanced Funds Universe ** |
-6.3% |
-2.9% |
12.9% |
-3.9% |
1.5% |
1.9% |
| Number of Funds |
800 |
796 |
778 |
715 |
547 |
266 |
| Rank |
46% |
40% |
62% |
13% |
27% |
62% |
* Prior to October 1, 2007, the benchmark for the Balanced Social Values Plus Fund was 60% Russell 3000 Index, 30% Lehman Aggregate Bond Index and 10% Merrill Lynch 3-month Treasury Bills Index. As of October 1, 2007, the benchmark composition became 60% Domini 400 Social Index, 30% Lehman Mortgaged Backed Securities Index and 10% Merrill Lynch 90-day Treasury Bill Index. In 2008, the Lehman Aggregate Bond Index was renamed the Barclays Capital Aggregate Bond Index and the Merrill Lynch 90-day Treasury Bill Index was renamed the Bank of America Merrill Lynch 3-month Treasury Bill Index. In July 2009, the Domini 400 Social Index was renamed the FTSE KLD 400 Social Index.
** The comparison universe includes all Wilshire Compass mutual funds included in the predefined universe of Lipper “Objectives” for “Balanced” mutual funds.
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Recent and Long-Term Returns: Domestic Stock Fund Compared with the Lipper Universe
For the quarter ending June 30, 2010, the Domestic Stock Fund declined 10.1% and outperformed its benchmark by a margin of 1.2%. The fund’s alternative investments contributed the most to the fund’s outperformance. Other positive contributors included publicly traded real estate securities and the fund’s allocation to small and mid-sized companies. This placed the fund in the top 40% of the Lipper universe of approximately 2,000 similar funds for the quarter.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
10 Years |
| Domestic Stock Fund |
-10.1% |
-5.2% |
12.9% |
-9.0% |
-0.1% |
-0.8% |
| Russell 3000 Index |
-11.3% |
-6.0% |
15.7% |
-9.5% |
-0.5% |
-0.9% |
| Lipper Growth and Income Funds Universe* |
-10.8% |
-6.3% |
13.6% |
-9.6% |
-0.8% |
0.5% |
| Number of Funds |
1,998 |
1,983 |
1,887 |
1,453 |
1,014 |
584 |
| Rank |
40% |
34% |
57% |
41% |
36% |
67% |
* The comparison universe incorporates funds from the following Wilshire Compass’s Lipper “Objectives” of “Growth and Income” mutual funds.
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Recent and Long-Term Returns: International Stock Fund Compared with the Lipper Universe
For the second quarter of 2010, the International Stock Fund declined 10.7%, but it still outperformed its benchmark by 1.5%. The fund’s allocation to developing-market stocks and strong stock selection by two of the fund’s developed-market managers contributed to benchmark outperformance. The fund ended the quarter just below the top quartile of the Lipper universe of 590 similar foreign stock funds.
Compound Annual Returns for the Periods
Ending June 30, 2010, Net of Fees |
3 Months |
YTD |
1 Year |
3 Years |
5 Years |
10 Years |
| International Stock Fund |
-10.7% |
-8.0% |
16.6% |
-8.9% |
5.2% |
0.8% |
| Blended Foreign Stock Index * |
-12.2% |
-10.4% |
11.5% |
-10.3% |
3.4% |
1.4% |
| Lipper Foreign Stock Funds Universe** |
-12.4% |
-10.8% |
8.8% |
-12.7% |
1.2% |
1.4% |
| Number of Funds |
590 |
582 |
551 |
419 |
265 |
135 |
| Rank |
26% |
22% |
9% |
17% |
9% |
54% |
* The benchmark for the International Stock Fund became the MSCI All Country World Index ex USA IMI (MSCI ACWI ex USA IMI) on January 1, 2008. From January 1, 2006 to December 31, 2007, the benchmark for the International Stock Fund had been the MSCI All Country World Index ex USA (MSCI ACWI ex USA). Prior to January 1, 2006, the benchmark had been the MSCI EAFE Index. The benchmark data reported above are blends of the three benchmarks based on the period for which each respective benchmark applies.
** The comparison universe contains all Wilshire Compass mutual funds included in the predefined universe of Lipper “Objectives” of “International”.
For further information on the General Board's investment strategy fund returns, please see the Investment Funds Description booklet.
Disclosure: Past performance is not a predictor of future results. The General Board highly recommends that participants consult with a fee-only financial planner to develop a savings plan that is best suited to the participant's individual life circumstance and risk tolerance.
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