b'Investment Committee ReportMarch 31, 2021What A Difference A Year MakesA year ago, the North AmericaThe combination of increased liquidity and historically markets reached all-time highslow interest rates created the perfect storm to fuel in February 2020 only to hitthe markets, and our approach to remaining invested 10-year lows on March 23,through a diversified asset allocation has enabled the 2020.This unprecedented fall inFoundation to benefit from the favourable markets.such a short period of time wasAs a result, in spring through early fall 2020 we saw just ahead of the Shevchenkoinvestors flock to technology and those stay-at-home Foundations March year end, resulting in annualstocks.With the announcement of vaccines in early portfolio losses of approximately $2.6 million dollarsNovember investors began focusing on the reopening or 2.4%.of the economy and the investment sentiment shifted to cyclical or value stocks.In 2021 the portfolio has seen In addition, hard assetsreal estate, infrastructure, and most commodities have also benefited from the record investment performance flurry of new investment. with an annualized rate of return As I write this summary, we have seen another strong of 23.38% - a gain of $10 million.quarter ending June 30, 2021.We are optimistic that the opening of the economy will continue to fuel near term growth. However, we are also concerned about some of the darker clouds ahead.High asset prices, inflation (transitory or not), With significant parts of the economy shut down forand increasing evidence that the impact of new covid much of 16 months, and the second and third wavesvariants may continue to negatively affect the economic of the pandemic fueling uncertainty, the governmentsrecovery.Moreover, the world has largely borrowed its came out spending.However, unlike during theway through this recovery.These massive increases in 2008 recession, this time, instead of the financialdebt will ultimately have to be serviced and repaid.This institutions, the beneficiaries were consumers andwill be more difficult should interest rates rise.businesses. Looking forward, our objectives for the year ahead Governments distributed the funds through a myriadinclude taking a hard look at our investment policy, of programs aimed at putting money in the hands ofand evaluating our managers performance and individuals and businesses, resulting in significanttheir asset allocation strategies. In addition, we are liquidity on the balance sheets of both. With muchcurrently reviewing alternative investment strategies to of the economy shut down and restrictions on socialsecure longer term rates of return with lower volatility. gatherings, travel, and most people working fromI would like to thank our Investment Committee for home, the rate of savings grew to unprecedented levels.all their efforts over the past year. As your Chair, the In addition, we saw interest rates on borrowing fallFoundation and I are very fortunate to work alongside to all time lows in the first part of 2020 and then startsuch a diverse and talented Committee.to climb from September through our March 2021D avid Chucko, Chairyear end.While the 10-year treasury interest rate hasInvestment Committeeincreased by more than 1.0% from its lows it remains at rates that we have not seen in our lifetimes. 6 ShevchenkoFoundationAnnualReport/'