Finance Committee

2025-2026 Annual Report

It is my pleasure to present this report on behalf of the Finance Committee for the past year.

The committee reviews the monthly investment statements prepared by Fiducient Advisors and meets in-person quarterly with Fiducient’s representatives. During these meetings, we review the performance of the Valley’s investment accounts, assess the impact of market conditions on our financial needs, and evaluate Fiducient’s recommendations regarding asset allocation and portfolio management. Additionally, we regularly invite one of our portfolio managers to attend our meetings to provide a deeper review of investment strategy and performance. The Finance Committee then conveys its findings and recommendations to the Board of Directors.

The Valley of Chicago undergoes an external annual audit to ensure our financial integrity. Members may review the audit report at the office during normal business hours.

Investment Overview
• The 2025–2026 fiscal year reflected a more constructive, though still evolving, investment environment. Following the moderated conditions of early 2024, markets regained momentum through much of 2025, supported by easing inflationary pressures and increased clarity around Federal Reserve interest rate policy. Equities delivered generally positive returns, though periods of volatility persisted as investors responded to uneven economic data and shifting expectations for growth. Fixed income performance remained stable, benefiting from a more predictable rate environment and providing consistent income and diversification to the portfolio.

• The Endowment Fund experienced a strong return of 12.1% over the past year, with trailing 10-year annualized returns of 5.8%.

• Our Building Improvement Fund posted a 14.6% return for the trailing 12 months.

During the year, the Finance Committee maintained a consistent investment approach, emphasizing stability, diversification, and long-term stewardship of the Valley’s assets. The portfolio allocation remained aligned with established targets, supporting an appropriate balance between growth and income while managing overall risk exposure.

We continued to rely on a combination of dividends, interest income, and selective distributions to support Valley operations. This approach allowed us to meet current funding needs while preserving the underlying strength of the investment portfolio for the future.

The Committee also sustained its focus on prudent fixed income management, including the ongoing use of individual bonds. This strategy provides clarity around maturity values and supports a structured reinvestment process, helping to maintain flexibility as market conditions evolve.

Outlook
Looking ahead, the Finance Committee will continue to emphasize a steady, disciplined approach to investment management. While market conditions remain uncertain, with shifting economic indicators and ongoing geopolitical considerations, we believe maintaining a diversified, long-term perspective remains the most effective course. The portfolio is structured to balance growth and income objectives, and we will continue to monitor opportunities to enhance returns while managing risk appropriately. Overall, the Valley’s investment position remains sound and aligned with its long-term financial goals.

Acknowledgments
I would like to sincerely thank the members of the Finance Committee — Brandon Zears, for their dedication and thoughtful oversight throughout the year. I also wish to recognize and thank our President — Brian Owen, Active Member — William Tienken, Deputy’s Representative — Andrew Keppy, and Treasurer — Lance Welter, for their ongoing support and commitment to our financial stewardship.

Respectfully Submitted,

Kenneth J. Armbruster
Finance Committee Chairman