Download LIMITED MATURITY INCOME FUND Fourth Quarter 2015

1300 WASHINGTON ST
DENVER, CO
LIMITED MATURITY
INCOME FUND
Fourth Quarter 2015
80203
FAX:
303.534.6012
PHONE:
303.534.6778
TOLL FREE:
888.543.8532
www.coef.org
OBJECTIVE & MANAGEMENT
The Colorado Episcopal Foundation Limited Maturity Fund (LMIF) is a pooled investment fund seeking to provide current
income and lower risk. Capital appreciation is a secondary consideration. The goal of the Fund is to produce, over the longterm, a total return that exceeds that of the Barclays Capital 1-3 Year Government Bond Index (BC 1-3) on a risk-adjusted
basis.
The Colorado Episcopal Foundation Board of Trustees has responsibility for the management of the Limited Maturity Income
Fund and is assisted in that role by the Investment Committee. A professional Investment advisor has been retained by the
Investment Committee to meet regularly with the Committee to assist with overseeing the management and operation of the
Limited Maturity Income Fund.
The Investment Committee, with the approval of the Board of Trustees, has invested 80% of the assets of the Limited Maturity
Income Fund equally in two different short-term bond mutual funds and the remaining 20% in cash and cash equivalents.
INVESTMENT REVIEW
The Limited Maturity Income Fund (LMIF) continues to meet its objective of providing current income while limiting exposure
to downside risk. During 2015 interest rates remained at historically low levels. In December, the Federal Reserve made the
decision to begin slowly increasing short-term rates resulting in a negative return for the LMIF in the fourth quarter. For the
year 2015 the LMIF had a total return of 0.65%, as compared to the 0.57% return of its benchmark, the Barclay’s Capital 1-3
Year Government Bond Index (BC 1-3). Over longer time periods the Fund has been able to outperform its benchmark
primarily due to the Fund’s larger commitment to corporate and other non-Treasury securities which have generated higher
yields and greater capital appreciation. The primary objective of the Bond Fund is to produce current income and it has had an
income yield of 1.35% for the twelve months ended December 31, 2015. As always, the Investment Committee will continue
to closely monitor the Fund to help ensure that it is well positioned to meet its objectives over the long term.
PERCENT TOTAL RETURNS
GROWTH OF $1,000
1.88
1.60
1.21
0.73
1.05
0.68
0.52
0.65
1
0.57
0.22
2
0.76
3
$1,400
2.50
2.68
4
0
$1,302
$1,200
$1,205
$1,281
Dec-15
Dec-14
Dec-13
Dec-12
Dec-11
10 YRS*
Dec-10
5 YRS*
Dec-09
3 YRS*
Dec-08
12 MOS
Dec-07
3 MOS
Dec-06
$1,000
-2
Dec-05
-0.21
$1,100
-0.43
-1
$1,300
Periods Ended 12-31-2015
LMIF
BC 1-3
CPI
LMIF
BC 1-3
CPI
Past performance is no guarantee of future performance. Indexes used for comparative purposes are the Barclays Capital 1-3 Year Government Bond Index
(BC 1-3) representing low risk short-term bonds and the Consumer Price Index (CPI) representing inflation. Total Returns include capital appreciation plus
income. *Periods greater than one year are annualized. Growth of $1,000 shows the value of an initial $1,000 investment after ten years with all income
reinvested.
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