10/03/2007

3Q Review

Hello:

The third quarter of this year (July, August, September) had positive results for most of the major indices of about 3%+. Large Cap Growth led the way with a positive return of 4.2%, according to JP Morgan research, and Small Cap Value lagged with a negative return of -6.2%.

Since the market low of October 2002, Mid Cap Value had the greatest overall return of +186.6% (again according to JP Morgan research) and Large Cap Growth lagged with an overall return of +97.1%. It could be argued that the Value asset classes that outperformed in the past five years, may be surpassed by the performance of the Growth asset classes going forward as Growth plays catch up to Value.

At Foundation Services Group, we continue to monitor the markets in general, and your organization, foundation, or endowment's portfolio in particular, in light of changing investment trends. Please feel free to contact us regarding the asset allocation, or any other questions you may have!

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager