Philanthropic Management

1
Philanthropic Management
December 31, 2006
Presentation to Missionary Society of
Connecticut Daniel W. Keating, CFA David L.
Lindsay, CFA Brian Drainville, CFA Director SR
Institutional Portfolio Strategist SR Fixed
Income Portfolio Manager SR Fixed Income
Portfolio Manager 860.952.7226 617.772.3542 61
7.772.3522 daniel.w.keating_at_bankofamerica.com davi
d.lindsay_at_columbiamanagement.com brian.drainville_at_
columbiamanagement.com Patrick J. Staffaroni,
V.P. Scott L. Davis, VP Institutional
Investments Relationship Manager SR Equity
Portfolio Manager Income Strategies
860.952.7380 617.341.2249 patrick.j.staffaroni
_at_bankofamerica.com scott.davis_at_columbiamanagement
.com
2
Table of Contents

• Executive Summary/Investment Guidelines
• Missionary Society of Connecticut Combined
  Portfolio Review
• Missionary Society of Connecticut BalancedEquity
  Large Cap Value Review
• Missionary Society of Connecticut Small Cap
  Equity Review
• Missionary Society of Connecticut Large Cap
  Growth Review
• Missionary Society of Connecticut BalancedFixed
  Income Review
• Appendix

3
Executive Summary/Investment Guidelines
4
Executive Summary

• Missionary Society of Connecticut
• Endowment market value as of the quarter ended
  December 31, 2006 equaled 65,619,936 compared to
  a September 31, 2006 market value 63,314,414.
  Net withdrawals for the period totaled 489,293.
  
• Portfolio asset class weightings are in line with
  investment policy guidelines. As of December 31,
  2006, the Endowment was allocated 60.86 to
  equity, 37.06 to fixed income and 2.08 to cash.
  Based on a generally favorable outlook for
  equity markets, the investment manager recommends
  increasing equity exposure above current levels.
  
• For the quarter, the combined portfolio generated
  a total return of 4.52 with equities returning
  6.93 and bonds 1.17. For the past twelve
  months, the combined portfolio returned 12.49
  with equities returning 18.57 and bonds 3.97.
  Total portfolio return exceeded the benchmark
  policy portfolio by approximately 137 basis
  points for the quarter and remains consistently
  strong over the long term.
• A generally healthy economic environment
  supported both equity and fixed income markets
  during the fourth quarter of 2006. Benign
  inflation data and solid earnings pushed equity
  returns significantly higher in the fourth
  quarter allowing most equity indices to post
  solid double digit returns for the year. On the
  international front, positive economic and
  corporate data combined with a weakening U.S.
  dollar pushed foreign equities ahead of their
  domestic counterparts for the quarter and one
  year periods.
• In terms of style, for the one year period ending
  December 31, value strategies handily beat their
  growth counterparts across market caps with
  smaller company stocks beating larger company
  stocks.

5
Missionary Society of ConnecticutInvestment
Guidelines
Missionary Society of Connecticut Investment
Objective The primary investment objective of the
Missionary Society is to produce as high a level
of current income as possible while still
allowing for long-term capital appreciation to
help offset inflation. In addition, the
investment committee selects for its portfolio
from among those investments meeting standards of
socially responsible investments as established
by annual meetings of the Connecticut Conference
of the United Church of Christ. To further
elaborate on this objective, it should be noted
that the investment committee provides the Bank
with annual unit income goals, and lists of those
securities which do not meet the social
responsibility requirements established by the
annual meeting of the Connecticut Conference of
the United Church of Christ.
Exhibit C Missionary Society of
Connecticut Investment Objectives and
Guidelines Adopted by the Finance
Committee  C-I. Investment Objectives
(87-5F-3)   The primary investment objective of
the Missionary Society is to produce current
income while still allowing for long-term capital
appreciation to help offset inflation. More
specifically, and in order of priority, the
following objectives shall apply   1. Stability
of investment incometo meet the budgetary
requirements of participants within The
Fund.   2. Preservation of capitalto provide a
reasonable assurance to Fund participants of the
level of principal that would be available
should a need for withdrawal arise.
6
Missionary Society of ConnecticutInvestment
Guidelines

•  3. Growth of unit value and investment income
  in excess of inflationas needed to meet
  withdrawals and distributions.
•   In addition, portfolio investments will be made
  only in those securities which meet the standards
  of socially responsible investments as
  established by annual meetings of the
  Connecticut Conference of the United Church of
  Christ or its Board of Directors (per addendum).
• C-II. Investment Policy Guidelines (87-5F-3)
•   The following guidelines shall apply to the
  investment of The Fund's assets
• 1. Eligible Securities - The portfolio may be
  invested in
• a. common stocks traded on national exchanges
•   b. public bonds
•   c. convertible securities
•   d. short-term securities
• The investment advisor(s) may request specific
  permission from the Finance Committee to invest a
  portion (not to exceed 20 in the aggregate) of
  The Fund's assets in other securities not listed
  above, e.g., options, futures, foreign, venture
  capital, etc.
• 2. Asset Mix The Fund's assets shall normally
  be invested in a combination of stocks and bonds,
  the proportion of which shall be set annually by
  the Finance Committee. The investment advisor(s)
  may deviate from the stated normal mix by 10
  of total assets without specific permission of
  the Committee.
• 3. DiversificationThe portfolio will generally
  be diversified by asset class and within asset
  types. Securities of any single issuer, except
  the U.S. Government, shall not exceed 10 of Fund
  assets at market.
•   4. QualityThe portfolio will generally have a
  bias for quality. No more than 10 of the fixed
  income component shall be in issues rated Baa
  or lower.

7
Missionary Society of ConnecticutInvestment
Guidelines

•  4. QualityThe portfolio will generally have a
  bias for quality. No more than 10 of the fixed
  income component shall be in issues rated Baa or
  lower.
• C-III. Performance Evaluation (87-5F-3)
• Portfolio performance results will be evaluated
  on a long-term basis, generally over a 3-5 year
  time period or full market cycle. Specific
  attention will be placed on
•   1. Real and absolute total returns.
•   2. Comparisons against appropriately weighed
  results of generally accepted stock and bond
  indices (Standard Poor's 500 Stock Index,
  Lehman Government/Corporate Bond Index).
•   3. Comparisons of the results of individual
  asset classes against appropriate indices.
•   4. Consistency of results over interim periods.
•   5. Volatility of asset values and investment
  income.
•   Consideration will be given as well to the
  economic costs associated with restrictions on
  investments considered to be socially
  unacceptable to The Fund.
• C-IV. Reporting (87-5F-3)
• The investment advisor(s) will meet with the
  Finance Committee quarterly and will review
  portfolio objectives, strategy and performance.
  Such information will be provided the Committee
  as necessary to evaluate compliance with
  investment policy guidelines and performance as
  indicated above.
•   The Committee shall review with the investment
  advisor(s) at least annually social
  responsibility restrictions and asset mix targets
  as set forth in the attached addendum. Interim
  reporting may occur as requested by either the
  Committee and/or the advisor(s).
•  

8
Missionary Society of ConnecticutInvestment
Guidelines

• C-V. Asset Mix (87-5F-3)
•   The view and determination of asset mix among
  different asset classes is the responsibility of
  The Finance Committee. The Committee has set the
  following ranges
•   1. Normal Mix 60 Stocks/40 Bonds
•   2. Equity Range 5070
•   3. Fixed Income Range 3050
• Within the Equity allocation, the following
  investments and percentage weightings are
  permissible
• Small capitalization 0 20
• International 0 25
• At the discretion of the Finance Committee,
  shifts between different equity styles are
  allowed (i.e. value vs. growth).
• Convertible bonds and convertible preferred
  stocks will be considered part of the equity
  component. Short Term securities maturing in less
  than one year will be part of the fixed income
  component.

9
Combined Portfolio ReviewMissionary Society of
Connecticut
10
Missionary Society of Connecticut Combined
FundsPortfolio Review as of December 31, 2006
Reconciliation of Assets
11
Missionary Society of Connecticut Combined
FundsPortfolio Review as of December 31, 2006
Asset Allocation
12
Current Asset Allocation vs. Target Asset
Allocation Missionary Society of Connecticut
Combined Funds

• A comparison of the current portfolio versus the
  target weightings.

13
Portfolio Performance - Missionary Society of
Connecticut Combined Funds Annualized Returns for
the Period Ending December 31, 2006
14
Missionary Society of Connecticut Combined
FundsPortfolio Performance as of December 31,
2006
Past performance is no guarantee of future
results. Returns shown are gross of fees.
Benchmark returns are shown from the first day
of the account inception month.
15
Asset Allocation Attribution AnalysisSeptember
30, 2006 December 31, 2006
16
Equity Large Cap Value ReviewMissionary Society
of Connecticut Balanced Fund
17
Missionary Society of Connecticut Balanced
FundTotal Performance as of December 31, 2006
18
Missionary Society of Connecticut Large Cap Value
EquityPortfolio Performance as of December 31,
2006
Past performance is no guarantee of future
results. Returns shown are gross of fees.
Benchmark returns are shown from the first day
of the account inception month.
19
Missionary Society of Connecticut Large Cap Value
EquityEquity Sector Returns1 as of December 31,
2006
1 Includes common stock only
20
Missionary Society of Connecticut Large Cap Value
EquityQuarterly Equity Sector Weightings1 as of
December 31, 2006
1 Includes common stock only
21
Missionary Society of Connecticut Large Cap Value
EquityTop 10 Holdings1 as of December 31, 2006
1 Includes common stock only
22
Missionary Society of Connecticut Large Cap Value
EquityEquity Holdings Sector Matrix as of
December 31, 2006
23
Small Cap Equity ReviewMissionary Society of
Connecticut
24
Missionary Society of Connecticut Small Cap
EquityTotal Performance as of December 31, 2006
1 Inception date April 1, 2002
25
Missionary Society of Connecticut Small Cap
EquityPortfolio Performance as of December 31,
2006
Past performance is no guarantee of future
results. Returns shown are gross of fees. 1
Inception date April 1, 2002 Benchmark returns
are shown from the first day of the account
inception month.
26
Missionary Society of Connecticut Small Cap
EquityEquity Sector Returns1 as of December 31,
2006
1 Includes common stock only
27
Missionary Society of Connecticut Small Cap
EquityQuarterly Equity Sector Weightings1 as of
December 31, 2006
1 Includes common stock only
28
Missionary Society of Connecticut Small Cap
EquityTop 10 Holdings1 as of December 31, 2006
1 Includes common stock only
29
Missionary Society of Connecticut Small Cap
EquityEquity Holdings Sector Matrix as of
December 31, 2006
30
Missionary Society of Connecticut Small Cap
EquityEquity Holdings Sector Matrix as of
December 31, 2006 (continued)
31
Missionary Society of Connecticut Small Cap
EquityEquity Holdings Sector Matrix as of
December 31, 2006 (continued)
32
Large Cap Growth Equity ReviewMissionary Society
of Connecticut
33
Missionary Society of Connecticut Large Cap
Growth EquityTotal Performance as of December
31, 2006
1 Inception date January 1, 2005
34
Missionary Society of Connecticut Large Cap
Growth EquityPortfolio Performance as of
December 31, 2006
Past performance is no guarantee of future
results. Returns shown are gross of fees. 1
Inception date January 1, 2005 Benchmark returns
are shown from the first day of the account
inception month.
35
Missionary Society of Connecticut Large Cap
Growth EquityEquity Sector Returns1 as of
December 31, 2006
1 Includes common stock only
36
Missionary Society of Connecticut Large Cap
Growth EquityQuarterly Equity Sector Weightings1
as of December 31, 2006
1 Includes common stock only
37
Missionary Society of Connecticut Large Cap
Growth EquityTop 10 Holdings1 as of December 31,
2006
1 Includes common stock only
38
Missionary Society of Connecticut Large Cap
Growth EquityEquity Holdings Sector Matrix as of
December 31, 2006
39
Missionary Society of Connecticut Large Cap
Growth EquityEquity Holdings Sector Matrix as of
December 31, 2006 (continued)
40
Fixed Income ReviewMissionary Society of
Connecticut Balanced Fund
41
Management Team

• David L. Lindsay, CFA Director and Senior Fixed
  Income Portfolio Manager
• David Lindsay is a Director and the senior fixed
  income portfolio manager at Columbia Management.
  He served as the director of fixed income and as
  a portfolio manager at David L. Babson Company,
  as a portfolio manager at First National
  Chicago, and in the United States Air Force. He
  joined the firm in 1986 and has, to date, accrued
  over 30 years of experience in the investments
  field. Mr. Lindsay earned a BA degree from Yale
  University and an MBA degree from Harvard
  University. He is a member and former director of
  the Fixed Income Management Society of Boston, a
  member of the Boston Security Analysts Society
  and the CFA Institute, and a member and former
  president of the Boston Economic Club. 
• Brian J. Drainville, CFA Director and Senior
  Fixed Income Portfolio Manager
• Brian Drainville, is a director and senior
  portfolio manager for Core Fixed Income strategy
  team at Columbia Management. He joined the firm
  in 1996 and worked the three prior years as an
  equities and options operations manager at Barry,
  Murphy and Co. Mr. Drainville earned his BA
  degree from the College of the Holy Cross. He is
  a member of the CFA Institute, the Fixed Income
  Management Society of Boston and the Bond
  Analysts Society of Boston.
• Alan M. Erickson, CFA Director and Senior Fixed
  Income Portfolio Manager
• Alan Erickson is a Director and senior fixed
  income portfolio manager. He joined the firm in
  1990 after receiving his BA degree from Bates
  College. Mr. Erickson has earned the NASD Series
  65 registration and is a member of the CFA
  Institute and the Boston Security Analysts
  Society.

42
Missionary Society of Connecticut Balanced
FundPortfolio Performance as of December 31, 2006
Past performance is no guarantee of future
results. Returns shown are gross of fees.
Benchmark returns are shown from the first day
of the account inception month.
43
Missionary Society of Connecticut Balanced
FundPortfolio Characteristics as of December 31,
2006
Portfolio Diversification
Quality Characteristics
Portfolio Statistics
1 Includes Treasuries and Federal agencies
44
Missionary Society of Connecticut Balanced
FundDuration Analysis as of December 31, 2006
45
Missionary Society of Connecticut Balanced
FundSector Allocation as of December 31, 2006
46
Missionary Society of Connecticut Balanced
FundQuality Ratings as of December 31, 2006
1 Includes Treasuries and Federal agencies
47
Yield Curve Review
Quarter-to-Date period ending 12/31/06
Trailing 12-month period ending 12/31/06
9/30/2006
12/31/2006

• The Fed remains somewhat data-dependent, although
  the bias would appear to be remaining on hold
  near-term as previous hikes continue to get fully
  incorporated into the marketas the effects are
  typically felt on a lagged basis. Provided
  inflation remains within a reasonable proximity
  to the Feds noted range, they are likely to
  remain on hold throughout the first quarter and
  potentially through the first half of 2007.
• For the quarter, the curve shifted modestly
  higher with the largest increases in the
  short-to-intermediate portion of the curve. The
  entire Q4 increase occurred in December as
  several strong economic signals pushed rates
  higher.

• The Fed remained on hold in their multi-year rate
  tightening campaign during the fourth quarter.
  Economic data releases for the period were mixed
  as growth showed signs of slowing and inflation
  ebbed somewhat as well. Early in the period
  expectations called for a Q1 Fed ease but those
  views were tempered as the period wore on and the
  economy proved more resilient than previously
  believed.
• Over the past 12 months, the spread between the
  2-year and 30-year UST has disappeared,
  resulting in a flat and partially inverted yield
  curve. We have positioned our portfolio to be
  approximately curve neutral in the current
  environment.

48
Lehman Brothers Indices YTD Excess ReturnsAs of
December 31, 2006
49
Appendix