<p>Otsego County Community Foundation- Investments Review as of March 31, 2015:</p><p>Investments Review: Background- the OCCF has one investment portfolio, which is held in the custody of First Merit PrivateBank under guidelines provided by the OCCF.</p><p>As of March 31, 2015, the portfolio had a value of $3,535,698 </p><p>Foundation’s holdings, the ratio of equity to fixed holdings at March 31, 2015 stood at 60% equity, which is within the Investment Policy Statement guidelines range of 40% to 70% equity. There were no significant changes in the equity t o fixed allocation during the quarter. During the first quarter of 2015 the OCCF infused $95,582 and withdrew $8,564 (for management fees).</p><p>For the first quarter of 2015, fees paid to the investment manager totaled $8,564. (Fee– based on 1% of the average month end balance of the portfolio.)</p><p>For the consolidated portfolio, the after fee return of $64,098 was 1.85%; based on the average investment balan ce of $3,455,858 (avg. of beginning and end of year balances) vs. a blended benchmark of 1.72%. </p><p>Q1 15 3-Year 5-Year Actual Returns (annualized, after fee) 1.85% 8.50 % 9.21 % Blended Benchmark (per OCCF policy) 1.78% 11.08% 10.96 % Variance .07% -2.58% - 1.75%</p><p>Q1 15 3-Year 5-Year Actual Returns (annualized, after fee) 1.85% 8.50 % 9.21 % Strategic CS Benchmark 2.38% 9.70% 9.74% Variance - .53% -1.20% -.53%</p><p>(First Merit considers the “Strategic CS Taxable 60/40” as the appropriate benchmark)</p><p>SUMMARY – Investments performed favorable to the benchmark in the first quarter of 2015.</p><p>Investment Guidelines – The Foundation’s Investment Policy Statement was last provided to the Foundation Board for update approval on September 11, 2014 and is under continuous review by the Investment Committee. The allocation guidelines as of September 11, 2014 are: Equities 40-70% Fixed 30-60% Alternatives 0 – 10% (including real estate) Cash & cash equivalents 0 – 10%</p><p>Blended Benchmark to use for evaluating performance: Equity portion - Russell 3000 Q1 2015- 1.9% x 60% = 1.14% Fixed portion - Barclay’s Aggregate Index Q1 2015 1.61% x 40% = .64 Benchmark 1.78% </p><p>Outlook – For the second quarter of 2015:  Although the stock market appears fully valued and interim volatility can be expected, stocks remain the most attractive asset class for the long term.  With the prospect the Fed raising interest rates, caution is warranted in the use of bonds. To avoid market risk, bond investors should maintain use of short durations.  Accordingly, investors will continue to reallocate assets from fixed income/bonds to stocks as the expected risk-adjusted return on stocks is better than on bonds.  Market corrections are likely in the short run as investors continue to react and rebalance holdings in response to events of the day.</p><p><OCCF Investments Review 033115 042915>rcourtois 1</p>