Most Jewish Community Endowment Fund (JCEF) Philanthropic Funds are primarily invested in a Pooled Fund composed of the Vanguard Prime Money Market Fund, cash and Israel Bonds.  The Pooled Fund is designed as a low-risk investment option, which seeks to provide current income while maintaining liquidity and a stable share price.  The Vanguard Prime Money Market Fund invests in high-quality, short-term money market instruments, including certificates of deposit, banker’s acceptances, commercial paper, and other money market securities generally rated in one of the two highest credit-quality categories for short-term securities. Most donors prefer this portfolio because the fund is not subject to stock market fluctuations and is readily available for distribution.  Donors or other authorized individual(s) may also recommend from among several other investment options.  Please note that principal additions to the fund are added to the Pooled Fund unless recommended otherwise.  Funds are not automatically rebalanced. 

No-load Mutual Funds.  Donors with Philanthropic Fund account balances of $10,000 or more may recommend to the JCEF one or more of the following investment options.

Please note that the availability of these investment options is not a recommendation or a suggestion from the JCEF to change investments from the pooled fund to any of the mutual funds.  Investments in any of the mutual funds are subject to stock and bond market fluctuations.  These investments are appropriate only for philanthropic funds which have a long-term investment objective and do not require substantial amounts of funds available for grants in the near-term; therefore, investments in any of the mutual funds may be inconsistent with a donor's grant recommendation plans.  It is generally advisable to maintain at least 50% of the philanthropic fund in the Pooled Fund.

MONEY MARKET FUND:

• Vanguard Treasury Money Market Fund invests only in securities backed by the full faith and credit of the U.S. Government.  The fund works to add value by emphasizing specific security issues and sectors of the money market that appear to be attractively priced based upon historical yield spread relationships.  Average maturity is normally maintained in the range of 30-70 days and was 68 days at 6/30/08.  Keeping average maturities within this range helps ensure the objective that the net asset value of the fund remains at a constant $1.00.  The expense ratio is 0.24%.

FIXED INCOME FUNDS:

• Dodge & Cox Income Fund.  A high-quality bond and other fixed income securities fund.  Its primary objective is a high and stable rate of current income consistent with long-term preservation of capital, with capital appreciation as a secondary objective.  The average quality of bonds held by the fund at 6/30/08 was Aa2; effective maturity was 6.6 years, and effective duration was 3.9 years.  The expense ratio is 0.44%.

• Wells Fargo Advantage Fund – Class A shares.  A managed fixed income fund that invests principally in below investment grade debt securities.  The Fund is not managed to maintain a specific average credit quality, however it will generally invest in securities that are rated BB through CCC.  The Fund uses a top-down, macroeconomic outlook to determine industry and credit quality allocations and then applies rigorous credit research to select individual securities that it believes can add value from income and/or the potential for capital appreciation.  The expense ratio is 0.86%.  The fund advisor imposes a 2% fee if shares of this fund are redeemed within 30 days of purchase.

STOCK FUNDS:

• Dodge and Cox International Stock Fund.  A “Value Style” fund that invests primarily in a diversified portfolio of equity securities issued by large, well established companies outside the U.S.  The manager seeks investments in companies whose shares appear to be temporarily undervalued by the market but have a favorable outlook for long-term growth.  The Fund is benchmarked against the Morgan Stanley Capital International (MSCI) EAFE (Europe, Australasia, Far East) Index, designed to measure market equity performance in 21 developed countries, excluding the U.S. and Canada.  The expense ratio is 0.65%.

• Dodge & Cox Stock Fund.  A broadly diversified managed portfolio of common stocks whose prospects appear to be temporarily undervalued in the marketplace.  Under normal circumstances, the fund will invest 80% of its total assets in common stocks including those securities of foreign issuers included in the S&P 500.  The fund may also invest up to 20% of its total assets in U.S. dollar-denominated securities of foreign issuers traded in the U.S. that are not included in the S&P 500.  Focusing on each company’s fundamentals, the manager seeks long-term growth of principal and income, with a secondary objective of achieving reasonable current income.  The expense ratio is 0.52%.

• Domini Social Equity Fund.  A stock fund seeking to provide long term total returns by investing primarily in stocks of U.S. companies that meet a comprehensive set of social and environmental standards as applied by Domini Social Investments LLC (Domini), the Fund’s investment manager.  The sub-advisor, Wellington Management, seeks to add value using a diversified quantitative stock selection approach, while managing risk through portfolio construction.  The Fund’s average market capitalization, sector weightings and growth vs. value style bias will be managed to match the S&P 500 Index.  The Fund's expense ratio will not exceed 1.15%. The fund advisor imposes a 2% fee if shares of this fund are redeemed within 30 days of purchase.  

• Masters’ Select Equity Fund.  A concentrated, yet diversified, fund (typically 75-105 investments) focused on a limited number of “highest confidence” stock picking ideas from each of seven, separate managers with differing investment styles.  Although primarily a large and small capitalization U.S. equity fund, the Fund may also invest a portion of its assets in companies based outside of the United States.  The Fund’s performance is measured against the Russell 3000 Index and the Lipper Multi-Cap Core Index.  The expense ratio is 1.20%.  The fund advisor imposes a 2% fee if shares of this fund are redeemed within 180 days of purchase.

• Masters’ Select International Fund.  A fund invested in common stocks of issuers located outside of the United States, including securities traded in developed and emerging markets.  The fund engages six investment managers who each select 8-15 stocks as a portion of the total portfolio.  The fund’s performance is compared with the Morgan Stanley Capital International All Countries World (except U.S.) Index and with the Lipper International Fund Index.  The expense ratio is 1.03%.  The fund advisor imposes a 2% fee if shares of this fund are redeemed within 180 days of purchase.  

• Vanguard 500 Index Fund.  A growth and income stock index fund which attempts to provide investment results that correspond to the price and yield performance of publicly traded stocks, in the aggregate, as represented by the Standard & Poor's 500 Composite Stock Price Index.  The expense ratio is 0.15%.

• Vanguard Total Stock Market Index Fund.  A growth and income stock index fund which attempts to provide investment results that parallel the performance of the MSCI US Broad Market Index, an index which represents approximately 99.5% of the capitalization of the US equity market.  The expense ratio is 0.15%.

BALANCED FUND:

• Vanguard Balanced Index Fund.  A balanced stock (60%) and bond (40%) index fund which attempts to provide investment results that replicate a weighted balance between the MSCI US Broad Market Index and the Lehman Brothers Aggregate Bond Index.  The expense ratio is 0.19%.

Vanguard offers multiple share classes to investors.  The expense ratios quoted above are associated with the Investor Share class.  The Federation works with Vanguard to aggregate both existing and new account balances to qualify for Admiral Share (Treasury Money Market Fund) and Signal Share (Balanced Index, 500 Index and Total Stock Market Index) classes which have lower expense ratios.  The ratios are lower by 47% to 58%.
                       
The above information is as reported by the mutual funds in their current literature as of July 29, 2008.  Investment policy, historical data, latest performance information, and prospectuses for each of the mutual funds are available upon request.