During this 30-minute webinar, The San Diego Foundation Investment Chair Horacio Valeiras, CFA and Chief Investment Officer Matt Fettig, CFA discussed 2016 Q4 trends, returns and asset allocation for The Foundation's Endowment Portfolio and Long-Term, Medium-Term and Short-Term Non-Endowment Portfolios. The discussion concludes with a Q&A from webinar attendees. For more information, visit SDFoundation.org/investments. You can watch the recording of the webinar here: https://www.youtube.com/watch?v=AzOCv3m5mXc.

1. Quarterly Investment Narrative
Conference Call
Monday, February 13, 2017

2. Speakers
Horacio Valeiras, CFA
Principal, HAV Capital
Investment Chair, Board of Governors
The San Diego Foundation
Matt Fettig, CFA
Vice President, Chief Investment Officer
The San Diego Foundation
Adrienne Vargas
Vice President, Chief Giving Officer
The San Diego Foundation

3. Agenda
1. Macroeconomic update
2. Performance & attribution for Endowment Portfolio
3. Performance & attribution for Long-Term Portfolio
4. Performance & attribution for Medium-Term Portfolio
5. Performance & attribution for Short-Term Portfolio
6. Q&A

4. U.S. Equities
3000
4000
5000
6000
7000
Jul-12 Jul-13 Jul-14 Jul-15 Jul-16
Russell 3000
Source: Russell Investments, as of 12/30/16

5. S&P500 EPS
Source: FactSet, as of 12/30/16
$20
$22
$24
$26
$28
$30
$32
$34
$36
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Actual Estimate

6. MSCI Valuation Metrics
1.6
19.9
9.7
3.2
5.0
2.8
22.9
13.4
2.1
4.4
1.5
14.6
8.7
2.6
6.8
0
5
10
15
20
25
P/BV P/E Price/Cash
Earnings
Dividend Yield
(%)
Earnings Yield
(%)
EAFE United States Emerging Markets
Source: MSCI, as of 12/31/16

7. 10 Year Return 90% Confidence Interval
-10%
-5%
0%
5%
10%
15%
20%
25%
30%Return
5th to 25th 25th to 50th 50th to 75th 75th to 95th 10 Year Forecast (Geometric)
High
Volatility
Low
Volatility

8. Performance & attribution for Endowment Portfolio
Asset Allocation
$446.3 million as of December 31, 2016
Includes Principal Only
Returns
For period ending December 31, 2016
Domestic
Fixed Income,
9.9%
Global/Int'l
Fixed Income,
6.8%
Domestic
Equity, 25.5%
Global Equity,
5.8%
Alternative,
20.0%
Commodities,
4.2%
Real Estate,
7.3%
Int'l Equity,
20.5%
Cash, 0.1%
Qtr. 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 1.3% 8.5% 3.5% 7.7% 7.1% 4.3%
Policy Index 0.9% 8.1% 3.4% 7.4% 6.8% 4.3%
0%
5%
10%

9. Performance & attribution for Long-Term Portfolio
Asset Allocation
$40.5 million as of December 31, 2016
Returns
Alternative
Investment,
20.10%
Fixed Income,
18.80%
Int'l Equity,
25.53%
Domestic
Equity, 26.24%
Real Estate,
4.00%
Commodities,
5.20% Cash, 0.00%
Qtr. 1 Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 0.40% 8.90% 2.50% 6.40% 6.00% 4.00%
Policy Index 0.40% 7.40% 2.60% 6.50% 6.30% 4.40%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%

10. Performance & attribution for Medium-Term Portfolio
Asset Allocation
$51.3 million as of December 31, 2016
Returns
Domestic
Fixed Income,
56.20%Domestic
Equity,
15.20%
Cash, 5.00%
Int'l Equity,
14.90%
Global/Int'l
Fixed Income,
3.70%
Commodities,
5.10%
Qtr. 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 0.00% 6.20% 1.30% 3.90% 4.00% 2.80%
Policy Index -0.90% 4.60% 1.80% 3.70% 4.20% 3.30%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%

11. Performance & attribution for Short-Term Portfolio
Asset Allocation
$20 million as of December 31, 2016
Returns
0.0%
0.1%
0.2%
0.3%
12/31/15 3/31/16 6/30/16 9/30/16 12/31/16
TSDF Actual 0.00% 0.10% 0.10% 0.10% 0.10%

12. Q&A
To submit questions for the Q&A,
please use the “Questions” chat function

13. Thank You
SDFoundation.org/Investments