2012 [2.8 MB] - Billy Graham Evangelistic Association

notes to Consolidated Financial StatementsAs of December 31, 2012Other investments valued utilizing Level 3 inputs on a non-recurring basis include interest in a family partnership and a note receivable.These investments are categorized as Level 3 because of limited or no observable market data. These investments were initially recorded atfair market value based on market appraisals at the time of gift. The Association has not observed any evidence of impairment.For investments in entities that calculate net asset value or its equivalent whose fair value is not readily determinable, the following tableprovides information about the relative liquidity of these investments. The fair values of these investments have been estimated using netasset value per share of the investments, unless noted. Management is not aware of any factors that would impact net asset value as ofDecember 31, 2012.Unfunded Redemption RedemptionFair Value Commitments Frequency Notice PeriodEquity Fund (a) $ 9,329,129 None Monthly 60 daysEmerging Market Funds (b) $ 12,581,217 None Monthly 10 daysReal Asset Funds (c) $ 13,708,099 None Monthly 8 daysReal Asset Funds (d) $ 13,608,454 None Quarterly 45 daysReal Asset MLP (e) $ 6,036,888 None Monthly 30 days(a) This U.S.-based strategy invests in equities that can grow their dividends over time through a combination of earnings growth and increasing payout ratio. An initial lockup period of 1 yearexpired in early 2012. Depending on the date a redemption notice is given, it could take up to approximately 90 days to redeem funds from this class.(b) This class provides broad exposure to emerging markets providing a concentrated, conservative strategy that focuses on bottom-up stock selection of quality companies in emerging markets.Depending on the date a redemption notice is given, it could take up to approximately 40 days to redeem funds from this class.(c) The strategy for this class passively allocates and rebalances capital to active portfolios with the following types of investments: Energy Equities, Metals and Mining Equities, TIPS, andCommodities. The strategic weights are established to provide investors an optimal mix to the component real asset markets. Depending on the date a redemption notice is given, it could takeup to approximately 38 days to redeem funds from this class.(d) The strategy for this class consists of three underlying funds. The first fund, representing up to 80% of the class invests tactically based on macro themes and has a significant “inflationhedging” component. The second fund, representing up to 20% of the class, which is comprised of strategic allocations to the manager’s hedge funds. The last fund allows up to 10% of thestrategy and is invested in distressed securities. Depending on the date a redemption notice is given, it could take up to approximately 135 days to redeem funds from this class.(e) This class employs a diversified, opportunistic exposure to the Master Limited Partnership environment and is included in the portfolio as an inflation hedge strategy. Depending on the date aredemption notice is given, it could take up to approximately 31 days to redeem funds from this class.44 BILLY GRAHAM EVANGELISTIC ASSOCIATION & AFFILIATED ORGANIZATIONS