The nine established UCF funds in which a UCC entity may participate

The United Church Foundation maintains a set of common investment Funds, each with different return/risk characteristics. At the present time the set consists of the UCF Cash and Equivalent Fund, the UCF Fixed-Income Fund, the UCF Domestic Core Equity Fund, the UCF Small Cap Equity Fund, the UCF International Equity Fund, the UCF Aggressive Balanced Fund, the UCF Moderate Balanced Fund and the UCF Conservative Balanced Fund. The investment objectives and policies of each Fund are described below. By allocating assets between these Funds, participants may create an investment program to match their objectives and their levels of risk tolerance.

The Board of Directors of the Foundation must approve changes in the Funds included in the Foundation's investment program, and in the objectives of each Fund. Notice of any such change will be appropriately communicated to participants in the Funds. The Foundation's Investment Committee may make changes in manager objectives, in guidelines and in operating procedures.

UCF Cash and Equivalent Fund
The UCF CASH & EQUIVALENT FUND seeks to provide the participant with a level of current income consistent with the maintenance of a constant unit value (as herein defined). The Fund carries the least amount of market risk of any of the Foundation's Funds, and correspondingly can be expected to provide the lowest total rate of return of the nine Funds over a long period of time. The Fund invests primarily in high quality, U.S. dollar denominated money market instruments with remaining maturities of thirteen months or less.

UCF Fixed-Income Fund
The UCF FIXED-INCOME FUND seeks to provide the participant with a rate of total return consistent with a broadly diversified portfolio of long term, high quality fixed-income securities. The Fund carries a degree of market risk and an expected total rate of return over a long period of time which are higher than those associated with the UCF Cash and Equivalent Fund, but less than those associated with the UCF Equity Funds and the UCF Balanced Funds. The Fund invests primarily in intermediate and long-term U.S. dollar denominated government and investment grade corporate fixed-income obligations, and it may own short-term fixed-income instruments as well.

UCF Domestic Core Equity Fund
The UCF DOMESTIC CORE EQUITY FUND seeks to provide the participant with a rate of total return consistent with a broadly diversified portfolio of large capitalization U.S. common stocks. The Fund carries a degree of market risk and an expected total rate of return over a long period of time that is less than the other UCF Equity Funds but more than the UCF Fixed-Income or Balanced Fund. The Fund invests primarily in the common stocks and other equity-like securities of companies headquartered in the U.S., but may hold up to 10% of the portfolio in companies domiciled outside the U.S. The Fund may also own short-term fixed income securities as cash reserves.

UCF Small Cap Equity Fund
The UCF SMALL CAP EQUITY FUND seeks to provide the participant with a rate of total return consistent with a diversified portfolio of U.S. small capitalization stocks. The Fund carries the greatest amount of market risk of any of the Foundation's domestic funds, and correspondingly can be expected to provide the highest total rate of return of the domestic equity and fixed-income funds over a long period of time. The Fund invests primarily in U.S. headquartered small capitalization common stocks and other equity-like securities with a weighted average market capitalization that is typically under $1.5 billion. The Fund may hold up to 10% of the portfolio in companies domiciled outside the U.S. and may also own short-term fixed income securities as cash reserves.

UCF International Equity Fund
The UCF INTERNATIONAL EQUITY FUND seeks to provide participants with a rate of total return consistent with a diversified portfolio of international stocks. Participants should recognize that by investing in foreign stocks they gain an opportunity to add the potential for long-term growth and to benefit from broader diversification, but at the same time, they should recognize that foreign stocks are subject to more risks than U. S. stocks. Risk can take the form of currency exchange risk, less liquidity, less stable governments and less developed economies. These risks can result in wider fluctuations in price for foreign stocks relative to comparable U.S. stocks. The Fund invests primarily in foreign common stocks and other equity-like securities issued by companies domiciled in developed countries in Europe, Asia and the Far East. The Fund may hold up to 10% of the portfolio in companies headquartered in the U.S. and may also own short-term fixed income securities as cash reserves.

UCF Equity Fund
The UCF EQUITY FUND seeks to provide the participant with a rate of total return consistent with a broadly diversified portfolio of common stocks. The assets of the Equity Fund consist of units of the UCF Core Domestic Equity Fund, the UCF Small Cap Equity Fund and the UCF International Equity Fund. The Fund carries a greater degree of market risk than the UCF Cash and Equivalent Fund, the UCF Fixed Income Fund and the UCF Balanced Funds, and correspondingly can be expected to provide a higher total rate of return than these funds over a long period of time. The Fund invests primarily in a broadly diversified portfolio of domestic and international common stocks and other equity-like securities that include both small and large capitalization stocks. It may own short-term fixed-income securities as cash reserves.

UCF Balanced Funds
The UCF BALANCED FUNDS seek to provide the participant with a rate of total return as is consistent with a broadly diversified portfolio of long-term high quality bonds and common stocks with varying equity allocations to obtain the desired degree of risk/return tradeoff. The Funds carry a degree of market risk and an expected total rate of return over a long period of time that are higher than those associated with the UCF Fixed-Income Fund, but less than those associated with the UCF Equity Funds. Balanced Fund assets consist of units of the UCF Fixed-Income Fund and the UCF Equity Fund. The UCF Conservative Balanced Fund has the lowest allocation to equities and thus has the lowest return potential of the three Balanced Funds over a long period of time, as well as the lowest market risk. The UCF Aggressive Balanced Fund has the highest allocation to equities and thus the highest return potential as well as the highest market risk over a long period of time. The UCF Moderate Balanced Fund has a middle-of-the-road approach that emphasizes stocks for their higher capital appreciation potential but retains a significant fixed-income component to temper principal volatility. Over a long period of time, its market risk and return potential is expected to be higher than the Conservative Balanced Fund but lower than the Aggressive Balanced Fund.