16
FY
21
ANNUAL
FINANCIAL
REPORT
70% Equity/30% Fixed Income MACM Portfolio
e Core Cash portfolio, totaling $67.1 million, is invested in a 70% equity 30% fixed income multi-asset class
strategy. ese asset allocation targets were determined by using TCNJ's investment advisor's intermediate and
long-term capital market assumptions while also keeping in mind TCNJ's goals, objectives, liquidity needs, and
risk tolerance. e table below shows a comparison of how the Core Cash portfolio was invested at the beginning
of the fiscal year versus the end of the year.
At the end of the fiscal year, the portfolio was managed with an overweight to equities relative to its
70% target. Specifically, the portfolio was tactically positioned with an approximate 8% overweight
to equities and 8% underweight to fixed income, relative to the established targets of TCNJ's 70:30
portfolio structure. e tactical overweight to equities helped to drive returns, especially versus the
index, as the MACM portfolio appreciated by approximately $13.8 million during the fiscal year.
e target allocation of investments have evolved over time to reflect TCNJ's goals and objectives
and market expectations. e college conducts a cash flow analysis annually to determine its expected
liquidity needs and prudent allocations between the three investment policy components.
