b'Investment Committee ReportMarch 31, 2023I had the opportunity 10 years ago to ride many of the routes in the mornings that the Tour de France professionals rode in the afternoon. I remember complaining about the difficulty of riding some of the mountain stages, only to be reminded that it does not matter how many hills you ride up because if you end up at the same place you started you ride an equal amount down hill. As I look at our two-year results, I am feeling the same way about our portfolio performance. If I told you that over the last two years ended March 31, 2023, our performance was +5.6% for 2022 and effectively flat for 2023, it would appear that not much happened. The last two years have effectively seen two bear markets (a drop of 20% peak to trough) and with the current run - two bull markets (an increase 20% or more). Using our March year end, the measuring stick essentially cuts a line through the middle of these bull and bear markets. As a result, just looking at the March 31 results doesnt tell the full story.Our ride has been a lot wilder than what the year end results show.The year ending December 21, 2022, is the only year in the last 45 years where both the U.S. bond and equity markets fell in the same year. To compound the problem, they both fell by more than 10%. It was a year where there was no place to hide. To add further fuel to our fire, the federal government introduced new rules that require Foundations like ours to distribute 5% (formerly 3.5%) of the fair market value of the portfolio each year. When you combine this with the administrative cost of running our Foundation, we now need to target returns of 6% to 7% and more. These changes are going to see our Foundation and all charitable foundations having to shift their investment thesis to take on more risk to make higher returns. This has also been a complicated year for both the Foundation and Investment Committee on the regulatory front. We have reviewed both our security law and tax compliance, reviewing options for enabling organizations to pool their funds with those of the Foundation, revamping many of our processes and procedures. INVESTMENT PORTFOLIO SUMMARY 5YR20232022202120202019Investments, $M*51.250.2047.636.939.5Grants Paid, $M6. Annualized ROR6.8%**-1.9%6.8%23.4%-2.0%8.0% *MARKET VALUE OF INVESTMENTS, NET OF GRANTS PAID** 5 YEAR ANNUALIZED RATE OF RETURN 48HEVCHENKO FOUNDATION ANNUAL REPORT /S'