During this 30-minute webinar, The San Diego Foundation Investment Steve Klosterman, AIF and Chief Investment Officer Matt Fettig, CFA discussed 2017 Q3 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=_Pp5vFs7p9M.

1. Quarterly Investment Performance
Conference Call
December 12, 2017

2. Speakers
Steve Klosterman
Regional Director, Halbert Hargrove
Chair, Investment Committee
The San Diego Foundation
Matt Fettig, CFA
Vice President, Chief Investment Officer
The San Diego Foundation
Theresa Nakata
Vice President, Chief Communications 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. What is driving U.S. equities?
-2%
0%
2%
4%
6%
8%
10%
12%
14%
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
S&P500PriceChange
P/E Expansion Earnings Growth
Source: Verus, Bloomberg, as of 9/29/17

5. Valuations
1.7
19.6
17.9
3.1
5.1
3.1
21.7
23.2
2.0
4.6
1.7
15.8
14.1
2.4
6.3
0
5
10
15
20
25
P/BV P/E Price/FCF Dividend Yield (%) Earnings Yield (%)
EAFE
United States
Emerging Markets
Source: Bloomberg, as of 9/30/17

6. Fed Rate Hike Expectations
Source: Bloomberg, as of 10/6/17
Fed dot plot
Market expectations

7. Performance & attribution for Endowment Portfolio
Asset Allocation
$484.2 as of September 30, 2017
Includes Principal Only
Returns*
For period ending September 30, 2017
*The Foundation's Policy Index is a composite of indexes reflecting our diversified portfolio, specifically: 48% MSCI ACWI, 11% BC US Universal, 3% BC Corp High Yield Index, 3% JPM GBI-EM
Diversified Index, 9% NCREIF ODCE, 15% HFRI FOF Index, 7% Cambridge Assoc. U.S. Private Equity Index Lagged, 4% Bloomberg Commodity Index
Domestic
Fixed Income,
9.9%
Global/Int'l
Fixed Income,
6.9%
Domestic
Equity, 24.0%
Global Equity,
5.3%
Alternative,
19.8%
Commodities,
3.6%
Real Estate,
6.6%
Int'l Equity,
23.6%
Cash, 0.3%
Qtr. YTD 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 3.7% 11.3% 12.8% 6.1% 7.7% 7.6% 4.6%
Policy Index 3.8% 11.3% 12.3% 5.9% 7.5% 7.5% 4.6%
0%
5%
10%
15%

8. Performance & attribution for Long-Term Portfolio
Asset Allocation
$47.4 million as of September 30, 2017
Returns*
For period ending September 30, 2017
*The Foundation's Policy Index for Long Term Portfolio is 50% MSCI ACWI, 20% HFRI FOF Index, 7% Barclays Aggregate, 7% Barclays High Yield, 6% FTSE NAREIT, 5% JPM GBI Global Div,
5% Bloomberg Commodity Index. Fixed Income Index: 37% Barclays Aggregate, 37% Barclays High Yield, and 26% JPM GBI Global Div Index.
Alternative
Investment,
19.8%
Fixed
Income,
18.7%
Int'l Equity,
26.1%
Domestic
Equity,
26.4%
Real Estate,
4.4%
Commodities,
4.5%
Qtr. YTD 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 4.2% 12.3% 12.7% 5.3% 6.5% 6.6% 4.6%
Policy Index 3.7% 11.2% 11.6% 5.1% 6.7% 7.0% 4.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%

9. Performance & attribution for Medium-Term Portfolio
Asset Allocation
$53.6 million as of September 30, 2017
Returns*
For period ending September 30, 2017
*The Foundation's Policy Index for Medium Term Portfolio is 30% MSCI ACWI, 35% Barclays Aggregate, 5% Barclays High Yield, 4% Barclays Global Aggregate, 21% BofA ML 1-3 yr Treasury,
5% 91 Day T-Bills. Fixed Income Index: 54% Barclays Aggregate, 8% Barclays High Yield, 6% Barclays Global Aggregate, 32% BofA ML 1-3 yr Treasury.
Domestic
Fixed Income,
56.8%
Domestic
Equity, 15.4%
Cash, 5.0%
Int'l Equity,
15.2%
Global/Int'l
Fixed
Income, 3.2% Commodities,
4.5%
Qtr. YTD 1-Yr 3-Yr 5-Yr 7-Yr 10-Yr
TSDF Actual 2.3% 7.1% 7.2% 2.9% 3.6% 4.3% 3.0%
Policy Index 2.1% 6.9% 5.9% 3.2% 3.7% 4.4% 3.5%
0.0%
2.0%
4.0%
6.0%
8.0%

10. Performance & attribution for Short-Term Portfolio
Asset Allocation
$20.3 million as of September 30, 2017
Returns
For period ending September 30, 2017
0.0%
0.1%
0.2%
0.3%
9/30/16 12/31/16 3/31/17 6/30/17 9/30/17
TSDF Actual 0.10% 0.10% 0.20% 0.20% 0.30%

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

12. Thank You
SDFoundation.org/Investments