La Methodist Children's Home Investment Meeting

Louisiana Methodist Children’s Home Investment Committee Meeting April 7, 2021

United Methodist Foundation of Louisiana

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MARKET FACTORS INFLUENCING 4Q20 Global equities rose dramatically while fixed income was flat.

• Throughout the last quarter of the year, optimism and confidence grew due to the introduction of a COVID vaccine and the continued effects of massive stimulus throughout the world,and especially in the U.S. (44% of GDP and about to increase under Biden).

• 3Q20 earnings (announced during the 4Q20) were better than expected and more companies began providing guidance (which had ceased during the pandemic).

• Election: With the WH, Senate and Congress all controlled by the democrats (although very thinly– super majority needed to affect major change), many believe additional stimulus will arrive more quickly, immediate focus on the pandemic and then climate change. No tax changes until well after the mid-term elections.

Some expectation of more “cooperation across the aisle” but time will tell.

• After dropping -32% in 2Q20, the U.S. Economy grew +33.1% in the 3Q20 and an increase of 5% is expected for the 4Q20.

• Unemployment in December was 6.7% after peaking in April at 14.7%.

The recent low was 3.5% in February of 2020.

United Methodist Foundation of Louisiana

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MARKET UPDATE 4Q20

Market Update (4Q20)

United Methodist Foundation of Louisiana For institutional use only. Distribution to any other audience is prohibited.

GLOBAL INSTITUTIONAL CONSULTING

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CIO OUTLOOK 2021 - THE GREAT SEPARATION

CIO Outlook 2021 – The Great Separation

United Methodist Foundation of Louisiana

GLOBAL INSTITUTIONAL CONSULTING

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CIO OUTLOOK 2021 - ECONOMIC OUTLOOK

CIO Outlook 2021 – Economic Outlook

United Methodist Foundation of Louisiana

GLOBAL INSTITUTIONAL CONSULTING

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CIO OUTLOOK 2021 - BUSINESS CYCLE (JAN 2021)

CIO Outlook 2021 – Business Cycle (Jan 2021)

United Methodist Foundation of Louisiana For institutional use only. Distribution to any other audience is prohibited.

GLOBAL INSTITUTIONAL CONSULTING

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CIO INVESTOR’S DASHBOARD CIO Market Outlook 2021 – CIO Investor Dashboard

GLOBAL INSTITUTIONAL CONSULTING

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For institutional use only. Distribution to any other audience is prohibited.

United Methodist Foundation of Louisiana

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CIO OUTLOOK 2021 - GUIDANCE

CIO Outlook 2021 – Guidance

GLOBAL INSTITUTIONAL CONSULTING

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•

Unprecedented fiscal stimulus, a soft U.S. dollar, and positive trends in economic and earnings growth are among the factors that we believe will continue to support an equity uptrend in 2021.

•

We expect a “grind-it-out” year in equity returns that far outpace Fixed Income, and what matters most is our expectation for a broad market advance relative to the narrow advances we have recently experienced, in our view.

•

We raised our overall allocation to Equities slightly and lowered our Cash allocation to position for continued economic recovery and to add cyclicality to portfolios. Within Equities, we upgraded U.S. Small-cap Value (where applicable) to slight overweight, and Emerging Markets (EMs) to neutral; while lowering our allocation to U.S. Large-caps (but we remain overweight).  We still expect Equities to outperform Fixed Income  We remain overweight US Equities  We are now neutral Emerging Markets  We are neutral International Developed Markets  We remain slightly underweight Fixed Income  We remain in favor of strategic allocations to Private Equity, Hedge Funds and Private Real Estate (if allowable).

For institutional use only. Distribution to any other audience is prohibited.

United Methodist Foundation of Louisiana

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FUND PERFORMANCE

12/31/20

LOUISIANA METHODIST CHILDREN’S HOME FUND

A customized portfolio created by the United Methodist Foundation of Louisiana to match the LMCH investment policy.

INCOME FUND

LMCH FUND 1 YEAR*

13.43%

IPS Benchmark

13.69%

A highly liquid fund offering stable value with higher income than similar liquid funds. A good alternative to CDs or when a ministry anticipates needing money in the near future.

CURRENTLY

BALANCED FUND

Investors with low risk tolerance utilize these funds for growth that outpaces inflation and income that supplements current needs. A combination of equity securities to provide capital appreciation, fixed income for income and absolute return and real assets for downside protection.

IMPACT FUND

INCOME FUND

This fund pursues capital appreciation opportunities by investing only equity securities in ESG (Environment, Social and Governance) companies with positive business practices.

.50%

BALANCED FUND 1 YEAR*

13.59%

IPS Benchmark

12.41%

IMPACT FUND 1 YEAR*

20.11%

IPS Benchmark

17.79%

United Methodist Foundation of Louisiana

* Net of all fees

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LMCH FUND BALANCES Account Name

Income Fund

12/31/20

Balanced Fund

LMCH Fund

General Endowment Fund

-

Davidson Endowment

-

$11,070

Varnell Endowment

-

$ 12,901

Bradley Endowment

-

$ 14,264

Clay Memorial Endowment

-

$ 68,763

Barksdale Endowment

-

$ 145,874

Otwell Memorial Endowment

-

$ 166,694

Amy McGuire Endowment

-

$ 164,128

New Orleans Endowment

-

$ 366,393

Votech Scholarship

-

$ 446,420

LA Methodist Children’s Home, Ruston

-

$ 361,639

MCH, Greater NO Facility Fund

-

-

$ 5,068,800

-

-

-

$ 5,068,800

$ 1,758,146

MCH, Ruston-Reserve Act Central Penn Fund

Totals

United Methodist Foundation of Louisiana

$18,924,881

$18,924,881

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LMCH FUND

Emerging Market & International Stocks 6%

12/31/20

Domestic Mid & SmallCap Stocks 15% Domestic Large Cap Stocks 47%

Global Fixed Income 32%

United Methodist Foundation of Louisiana

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UNITED UNITEDMETHODIST METHODISTFOUNDATION FOUNDATIONOF OFLOUISIANA LOUISIANA

12/31/2020 12/31/2020

UNITED METHODIST FOUNDATION OF LOUISIANA

12/31/2020

UNITED UNITEDMETHODIST METHODISTCHILDREN'S CHILDREN'SHOME HOME LMCH FUND UMCH UMCH(Incepted (Incepted7/2019) 7/2019) IPS IPSBenchmark Benchmark UMCH (InceptedOF 7/2019) UNITED METHODIST FOUNDATION LOUISIANA IPS Benchmark UMCH UMCHFund FundFlows Flows Opening OpeningBalance Balance UMCH Fund Flows Net NetFlows Flows Opening Balance LMCH (Incepted 7/2019) UMCH (Incepted 7/2019) Interest/Dividends Interest/Dividends Net Flows IPS Benchmark IPS Benchmark Appreciation/(Depreciation) Appreciation/(Depreciation) Interest/Dividends Closing ClosingBalance Balance Appreciation/(Depreciation) UMCHBalance Fund Flows Closing Opening Balance Net Flows Interest/Dividends Appreciation/(Depreciation) Closing Balance

UNITED METHODIST CHILDREN'S HOME 4Q2020 4Q2020 YTD YTD 10.05 10.05 4Q2020 7.94 7.94 10.05 7.94

13.43 13.43 YTD 13.69 13.69 13.43 13.69

4Q2020 4Q2020

1 1Year Year 13.43 13.43 1 Year 13.69 13.69 13.43 13.69 YTD YTD

UNITED METHODIST 16,604,527 16,604,527 CHILDREN'S HOME 16,498,507 16,498,507

4Q2020 YTD (15,045) (15,045) (29,684) (29,684) 4Q2020 YTD 1 Year 16,604,527 16,498,507 10.05 13.43 13.43 10.05 13.43 13.43 153,869 153,869 225,582 225,582 (15,045) (29,684) 7.94 13.69 13.69 7.94 13.69 13.69 819,073 819,073 868,019 868,019 153,869 225,582 17,562,424 17,562,424 17,562,424 17,562,424 819,073 868,019 4Q2020 YTD 17,562,424 17,562,424 CURRENT CURRENTACCOUNT ACCOUNTALLOCATION ALLOCATION 16,604,527 16,498,507 CURRENT ACCOUNT (15,045) ALLOCATION (29,684) 153,869 225,582 819,073 868,019 17,562,424 17,562,424

CURRENT ACCOUNT ALLOCATION

Incept Incept(8/19) (8/19) 14.35 14.35 Incept (8/19) 14.39 14.39 14.35 14.39

12/31/2020

Since SinceInception Inception(8/19) (8/19) 16,498,507 16,498,507 Since Inception (8/19) (29,684) (29,684) Incept (8/19) 16,498,507 14.35 14.35 225,582 225,582 (29,684) 14.39 14.39 868,019 868,019 225,582 17,562,424 17,562,424 868,019 Since17,562,424 Inception (8/19) 16,498,507 (29,684) 225,582 868,019 24.43 17,562,424 22.23 9.36 8.60 7.61 6.08 5.66 4.75

n

Money Market

4.62 875,000 4.54 2.06

Total Portfolio

100.0%

$18,924,881

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GLOBAL GLOBALINSTITUTIONAL INSTITUTIONALCONSULTING CONSULTING

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GLOBAL INSTITUTIONAL CONSULTING

United Methodist Foundation of Louisiana

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UNITED METHODIST FOUNDATION OF LOUISIANA UNITED METHODIST FOUNDATION OF LOUISIANA

12/31

BALANCED FUND

12/31/20

BALANCED FUND SUMMARY BALANCED FUND SUMMARY

4Q2020 4Q2020 Balanced Fund 9.97 UNITED METHODIST FOUNDATION OF LOUISIANA Fund IPSBalanced Benchmark 8.96 9.97 Dynamic Style Allocation Benchmark 10.07 IPS Benchmark 8.96 BALANCED FUND SUMMARY Standard Deviation - Fund Dynamic Style Allocation Benchmark 10.07

Standard Deviation - Fund

StadardFund Deviation - Benchmark Balanced Sharpe Ratio - Fund - Benchmark IPS Stadard BenchmarkDeviation Dynamic Style Allocation Benchmark Sharpe Ratio - Benchmark Sharpe Ratio - Fund Standard Deviation - Fund Sharpe Ratio- Benchmark - Benchmark Stadard Deviation Sharpe Ratio - Fund Sharpe Ratio - Benchmark

4Q2020 9.97 8.96 10.07

YTD 15.00 12.41 13.46

YTD 15.00 YTD 12.41 15.00 13.46 12.41 13.46

1 YR 15.00 12.41 13.46

1 YR 15.00 1 YR 12.41 15.00 13.46 12.41 13.46

3 YR 5 YR 8.77 9.48 7.64 8.53 8.25 9.14 11.49 9.30 10.92 8.81 CURRENT ACCOUNT ALLOCATION 0.63 0.67 CURRENT ACCOUNT ALLOCATION 0.58 0.68

3 YR 5 YR 10 YR* 8.77 3 YR12/31/2020 9.48 5 YR 6.70 10 YR 9.48 6.29 6.70 7.64 8.77 8.53 8.25 7.64 9.14 8.53 6.29 11.49 8.25 9.30 9.14 9.71 10 YR* 9.71 10.92 11.49 8.81 9.30 9.15 6.70 0.63 10.92 0.67 0.63 6.29 8.81 9.15 0.58 0.63 0.68 0.67 0.62 0.63 9.71 0.58 9.15 0.63 0.62

0.68

0.62

CURRENT ACCOUNT ALLOCATION

16.36

Total Portfolio

100.0%

*Portfolio returns prior to 01/01/2013 provided by UMFL

United Methodist Foundation of Louisiana Page 3 *Portfolio returns prior to 01/01/2013 provided by UMFL

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INCOME FROM PLANNED GIFTS

Louisiana Methodist Children’s Home

Total Income Since First Planned Gift: $1,098,330

Year Est.

Gift Name

Donor Instructions

2020 2020 Distribution

1980

Brame Fund

All income to LMCH

1983

Neely Trust

20% of income (50% to LMCH, 50% to NO Home)

1984

McKinnon Trust

20% of income to LMCH

$70

1984

McLeod Trust

25% of income to LMCH

$340

1984

Oglesby Endowment

75% of income to LMCH

$206

1991/97

Myrhaugen Gift Annuity

All income to LMCH

$807

1994

Fiandt Gift Annuity

15% of income to NO Home

$33

1995

Fairchild Gift Annuity

All income to LMCH

$2,455

1996

Stagg Trust

40% of income (50% to LMCH, 50% to NO Home)

$6,499

1996

Caraway Endowment

7% of income to LMCH

$600 $4,587

-$409

1996

Hearne Trust

20% of income to LMCH

1997

Stagg Gift Annuity

40% of income (50% to LMCH, 50% to NO Home)

1997

Frye Trust

45% of income to LMCH

$1,036

1999

Wadsworth Endowment

All income to LMCH

$4,007

1999

Wier Gift Annuity

1/3 of income to LMCH

$242

$844

2004

Myers Life Estate

All income to LMCH

$4,077

2005

Peyton Gift Annuity

All income to LMCH

$1,261

2007

Bernard Endowment

All income to LMCH

$2,385

2007

Carrollton

All income to N.O. Home

--

2007

Connaughton

All income to N.O. Home

$130

2007

Austin Trust

1/2 income to N.O. Home

$16,662

2007

Thomas Trust

20% of income to LMCH

2007

Humphreys Endowment

All income to LMCH

$185

2008

Chaffin Endowment

All income to LMCH

$11,342

2009

Ponchatoula UMW

Income Every Three Years

2009

Oak Park UMC

All income to Calcasieu Home

2010

Owens Gift Annuity

1/3 of proceeds to LMCH

2011

Brasher Home

All income to LMCH

$2,081

2011

Anonymous

All income to LMCH

$5,911

2016

Benton Education

Howard School Art Program

$3,892

2019

Means

50% of income to LMCH

$2,512

Total Income 2020:

United Methodist Foundation of Louisiana

$747

$254 $5,048 $908

$79,530

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DEFERRED GIFTS

2020

Louisiana Methodist Children’s Home Year Est.

Gift Name

Donor Instructions

1996

Caraway Trust

10% of income to LMCH

2000

Caraway Trust

20% of income to LMCH

2010

Ben-lesau Trust

50% of income to LMCH

2011

Middlebrooks Gift Annuity

50% of income to LMCH

2011

Ellender Gift Annuity

All income to LMCH

2013

Burleigh Gift Annuity

All income to LMCH

2013

Turnley Gift Annuity

50% of income to LMCH

2014

Burleigh Gift Annuity

All income to LMCH

2014

Burleigh Gift Annuity

All income to LMCH

2014

Roberts CRUT

50% of income to LMCH

2014

Mollere Endowment

40% of income to LMCH

2015

Roberts CRUT

50% of income to LMCH

2015

Burleigh Gift Annuity

All income to LMCH

2015

Turnley Gift Annuity

50% of income to LMCH

United Methodist Foundation of Louisiana

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8337 Jefferson Highway Baton Rouge, Louisiana 70809 225.346.1535 umf.org