Investment Committee Report ~ Year End 2010

Community Of Lancaster  Education Group

 We are very pleased to report another year of strong performance.  So robust was the appreciation that our ending valuation eclipsed the previous all time high recorded at  year end 2007.  It would appear that our decision to ride out the severe downturn and continue with our original investment strategy was the right decision. While delighted with the outcome, we are unable to provide any guarantee of future performance.

 This year the COLEG portfolio increased in value by just under 19%.  At the close of business on December 31, brokerage account assets totaled $380,686.70.  Last year at this time, the assets in this account were valued at $320,444.17.  This represents an absolute increase in value of  $60,242.53. 

 Given the continuing low level of distributions received during the year, we were only able to slightly increase our existing position in Cohen & Speers Infrastructure Fund.  There was also a relatively insignificant amount of shares added via an automatic dividend reinvestment program which generally speaking we do not participate in.  There were no sales during the year.

As mentioned last year and this year, the valuation of the underlying securities in our portfolio did appreciate quite nicely.  However, the income generated by dividends, interest and capital gains which are key in determining our annual scholarship amounts remains at much lower levels than in years past.  This year we did see some slight improvement and we are cautiously optimistic we will see additional resumptions and increases as we move forward.  But, we are also realistic and believe it may take several years to reach the levels seen in 2007. 

 The Investment Committee continuously evaluates alternatives and monitors the financial markets and our portfolio holdings.  As before this committee remains committed to their long terms goals of growth, income and diversification of the portfolio.

The following is the makeup of brokerage account assets as of December 31, 2010, along with their percentage of the overall allocation:

DESCRIPTION	SHARES	MARKET	VALUE	% PORT
AIM Select Real Estate	2,350	$8.1600	$19,176.0000	5.04%
Bancroft Convertibles	564	$16.9199	$9,542.8236	2.51%
Boulder Total Return	2,100	$15.5200	$32,592.0000	8.56%
Cohen & Steers Infrastructure	1,969	$16.4200	$32,330.9800	8.49%
Diamond Hills Financial Trends	4,500	$9.8100	$44,145.0000	11.60%
Ellsworth Convertibles	2,539	$7.3495	$18,660.3805	4.90%
Gabelli Dividend & Income	3,000	$15.3600	$46,080.0000	12.10%
H & Q Life Sciences	3,122	$10.7705	$33,625.5010	8.83%
JH Bank & Thrift	1,175	$17.2200	$20,233.5000	5.32%
JH Invest. Securities	700	$15.1000	$10,570.0000	2.78%
JH Tax Advantaged	2,000	$14.9100	$29,820.0000	7.83%
LMP Capital & Income	2,000	$12.4500	$24,900.0000	6.54%
Zweig Fund	11,600	$3.3500	$38,860.0000	10.21%
Cash	20,150.51	$1.0000	$20,150.5100	5.29%
			$380,686.70	100.00%
		YEAR END	$ CHANGE	% CHANGE
	2001	$91,346.88	NMF	NMF
	2002	$101,758.88	$10,412.00	11.40%
	2003	$169,984.18	$68,225.30	67.05%
	2004	$284,107.91	$114,123.73	67.14%
	2005	$290,660.98	$6,553.07	2.31%
	2006	$365,446.96	$74,785.98	25.73%
	2007	$376,249.32	$10,802.36	2.96%
	2008	$244,424.63	-$131,824.69	-35.04%
	2009	$320,444.17	$76,019.54	31.10%
	2010	$380,686.70	$60,242.53	18.80%

 Bob Laude (Chairman),  Bruce Nielsen, Shelly Westerberg & Fred Wilebski

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