MAF and IEF invest in stocks listed on non-US exchanges. Trading on many such exchanges ends prior to the NYSE market close, the time at which the funds' holdings are priced. Consistent with best practices, such securities are "fair valued," a process that entails, among other things, consideration of events occurring between the close of local, non-US exchanges and the subsequent US market close. On days such as September 15, 2008, during which US markets fall sharply after the close of oveseas markets that themselves fell sharply earlier in the day, these stocks experience a "double-whammy" effect of sorts: they're marked down to their closing price on the local, non-US exchange and then again for fair valuation purposes to reflect the anticipated next day decline on the local, non-US exchange resulting, in part, from US market declines. This fair value impact can cause the funds to post daily NAV changes that imply exposures to equity markets -- "betas," to use industry parlance -- that exceed their actual equity market exposures. For example, with European markets down roughly 4.5% and the S&P down another 3.0% post-European markets' close, MAF's and IEF's European-listed equities will likely be priced to reflect declines on the order of 7% - 8%. Notably, the MSCI All Country World Index and All Country World ex-US Index, which comprise the global equity segment benchmark and fund benchmark for MAF and IEF, respectively, do not employ fair valuation techniques when arriving at their daily closing levels.

TIFF is adding talent in new areas, depth in existing roles and experience throughout. During the second quarter, the staff welcomed Herbie Bohnet (legal), James Butcher (trading, research), Paul Horvitz (editorial), Emily McCandless (administration), Jim Shields (information technology) and Christian Szautner (compliance). Brief biographies can be viewed by clicking the Our Staff link at left. Benjamin Franklin's Poor Richard said in his 1750 Almanack: "Hide not your Talents, they for Use were made. What's a Sun-Dial in the Shade?"

The boards and staff of all entities operating under the TIFF banner note with pleasure and pride the recent appointment of Jane Mendillo as President and CEO of Harvard Management Company. A trustee of TIFF Education Foundation (TEF) since September 2002 and TIFF Advisory Services (TAS) since June 2003 - and TAS board chair since June 2006 - Jane was recently elected a director of the TIFF Investment Program (a/k/a TIFF's mutual fund family). Her term as TAS board chair will be completed in June 2008, but she is expected to continue serving on one or more of the TIFF boards. We wish Jane well as she takes up her new and demanding duties at Harvard and look forward to her continued active engagement with TIFF.

Due to State Street Bank's acquisition of Investors Bank & Trust Company, TIP's wire instructions have changed. The new instructions can be found in the memo sent to existing members on February 15, 2008. Please update your records to reflect this change.