The composite return of the complete portfolios included in the performance calculation was a negative 2.60 %, compared to a negative 13.04 % for the S&P 500 index. The composite return for common stocks (excluding fixed-income assets contained in included accounts) was a negative 3.31 %.

In 2001, most growth in our total assets under management came from new accounts invested exclusively in tax exempt bonds, a unique specialty of WP&M.

Mid year, WP&M qualified for registration with the United States Securities and Exchange Commission. Registration with the SEC does not imply quality of performance. Registration occurs when assets exceed $25 million.

To fund personal needs, two accounts utilized margin to borrow money. Both clients believed that borrowing was more effective than selling securities because selling would have created taxable realized capital gains. WP&M, by policy, does not manage margin accounts, and discourages their use. To accommodate these situations, WP&M decided to maintain the accounts, but to charge only on net equity, not on total value.

In November, John was invited to speak before a national gathering of church-related pension plan officers. His subject was how to work effectively with investment committees. -- jwg, 01/22/2002