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TCNJ Annual Financial Report - FY21

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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.

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