MAUMEE VALLEY COUNTRY DAY SCHOOL

2011-2012

ENDOWMENT REPORT

INTRODUCTION

This report has been prepared to provide information about your endowment fund(s) and the management and performance of the Maumee Valley Country Day School Endowment Fund.

Maumee Valley Country Day School’s Endowment Board has delegated the investment oversight of the Endowment Fund to the Investment Committee which operates within the parameters of the School’s Investment Policy Statement.

To achieve its investment objective, the Maumee Valley Country Day School’s Endowment Board utilizes an independent investment manager, The Common Fund, to provide ongoing evaluation of economic conditions, review manager performance and provide advice on asset allocation.

The Endowment Board had adopted the strategy of investing endowment assets to preserve the long range purchasing power of the endowment in order to provide intergenerational financial support for the programs the endowments were created to benefit.

Endowments provide a permanent partnership between the School and the donor. The legacy of thoughtful donors plays a role in the life of the School in perpetuity and becomes the foundation upon which Maumee Valley Country Day School can build on its achievements. The generosity of MVCDS endowment donors is appreciated by generations past, present, and future.

As of June 30, 2012 the school’s endowed fund comprised 35 separate endowments totaling $8,970,408.

PROGRAM SUPPORT

The Endowment Fund supports school programs as designated by the donors. The programs, funded by the spending policy distributions, include scholarships, faculty support, and building operations. Many important school activities could not be achieved without the financial support from the endowment funds.

-

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

TOTAL ENDOWMENT ON JUNE 30, 2012 / $8.97M

FISCAL YEAR (JULY 1 - JUNE 30)

DO

LLA

RS

IN M

ILLI

ON

S

INVESTMENT PERFORMANCE THROUGH JUNE 30, 2012

0%

2%

4%

6%

8%

10%

12%

CALENDAR YTD 1 Year 3 Years 5 Years SINCE INCEPTION (2006)

INVESTMENT PERFORMANCE MULTI STRATEGY BOND FUND

Bond Fund Barclay's Capital U.S. Aggregrate Bond Index

-4%

0%

4%

8%

12%

16%

CALENDAR YTD 1 Year 3 Years 5 Years 10 Years SINCE INCEPTION

(1989)

INVESTMENT PERFORMANCE MULTI STRATEGY EQUITY FUND

Equity Fund S&P 500 Index

SPENDING POLICY

A goal of the Endowment Fund is to achieve investment performance that supports stable endowment spending from year to year in order to provide steady predictable funding for programs.

lncome earned by the assets in the Fund shall be received by the Trustees and, after payment of all appropriate expenses of the Fund, the net remainder shall be delivered at least annually to the Treasurer of the School for such use as may be directed by the Board. In the event that the

Board shall deem such income from time to time to be unneeded, it may be re-appropriated to the Fund by the Board.

For the fiscal year ended 2012, Maumee Valley distributed 5.5% of the Endowment balance (using a trailing three year average to determine the balance). The graph below represents the funds available to the School from the Endowment.

ASSET ALLOCATION & PORTFOLIO COMPOSITION

The Endowment Fund incorporates a long-term view of the financial markets to determine asset allocation guidelines.

SUB-ASSET ALLOCATION EQUITY FUNDJUNE 30, 2012

Consumer Discretionary

Consumer Staples

Energy

Financials

Healthcare

Industrials

SUB-ASSET ALLOCATION BOND FUNDJUNE 30, 2012 Gov't/Agency

Mortgages

CMBS

Asset-backed

Corporates

Non-U.S.

Municipals

Emerging Market Debt

ASSET ALLOCATION JUNE 30, 2012

Equity

Fixed Income

-

200

400

600

2008 2009 2010 2011 2012

ENDOWMENT SPENDING DOLLARS AVAILABLE TO MVCDS

FISCAL YEAR (JULY 1 - JUNE 30)

DO

LLA

RS

IN T

HO

USA

ND

S