Shareholders of the Investment Fund of the Diocese of Long Island
Annual Report

July 18, 2005

To: Shareholders of the Investment Fund of the Diocese of Long Island

Re: Report on the operations of the Investment Fund of the Diocese of Long Island for the twelve-month period ending December 31, 2004.

The enclosed report discusses the performance of the Investment Fund in 2004 and the activities that took place. While the Fund performed well in 2004, that performance does not reflect the significant changes that were initiated during the year. These changes, which were not completed until June 30 of this year, will be reflected in the Fund’s performance as the year progresses. The report describes the changes in the allocation of assets and in the managers chosen to execute within their respective specialties.

The Trustees also authorized a change in the calculation of the Spending Rate. Investors in the Fund should be aware that the Spending Rate is the rate at which earnings are credited to accounts. It differs from the total return of the Fund as it reflects the fact that a cushion should be set aside to account for inflation. However, investors are free to withdraw at a greater rate based on their needs and any agreements that might control the use of the account.

We welcome your comments and suggestions. Please feel free to contact us through the Diocesan offices.

cc: Rectors, Priests-in-Charge, Church Wardens and Treasurers