The Trustees of the Estate and Property, elected by the Convention of the Diocese, will make a change in how the Equity Fund is invested as of January 1, 2007. As of January, the Equity Fund will be known as the Diversified Equity Fund.

For many years the Equity Fund has been almost entirely invested in the stocks of the largest U.S. companies. The Trustees will be adding holdings of mid-sized and smaller U.S. companies to the Diversified Equity Fund, as well as investments in foreign companies. Owners of shares of the Diversified Equity Fund will benefit from exposure to other sectors of the equity markets, since the stocks of companies of different sizes and in different parts of the world perform differently over the cycles of the markets.

The target allocation model for the Diversified Equity Fund is as follows:

• Large-cap domestic equities 70%
• Mid-cap domestic equities 10%
• Small-cap domestic equities 5%
• International equities 15%

The Trustees will review the allocation at the end of each quarter, rebalancing as components move significantly from the target.

NO fees are charged to participants in the fund.

The Fund has been managed since July 2003 by Wellington Management Company. For the period 1985 through June 2003, it was managed by Harbor Capital Management Company. For Large-Cap holdings, the allocation among sectors and the choice of holdings within sectors are in the discretion of the manager. Mid-Cap, Small-cap and International holdings are determined by the Trustees. The Fund's performance is actively monitored by the Trustees, with due diligence examination visits conducted by the Trustees' Investment Committee as appropriate. The Fund is audited annually by our independent auditor.