TCNJ

EXECUTIVE SUMMARY JUNE 30, 2015 6 OPENING BALANCE CONTRIBUTIONS/ (WITHDRAWLS) APPRECIATION/ (DEPRECIATION) TOTAL RETURN (AVERAGE ANNUAL) CLOSING BALANCE 2011 CATEGORIES 2012 $25,153,280 $25,000,000 $153,280 $10,000,000 $472,600 $1,228,043 $25,153,280 $35,625,881 $36,853,924 0.85% 0.65% 4.01% 8.66% 2.50% 3.67% 2013 $35,625,881 $15,000,000 $4,643,748 $56,497,672 2014 $36,853,924 $15,000,000 $1,724,030 $73,221,702 2015 $56,497,672 $65,000,000 $8,221,701 $73,221,702 ENTIRE PERIOD FISCAL YEAR 1. Periods represent fiscal years, from July 1 to June 30. 2. Total return for the entire period represents an average annual return, with an inception date of 12/31/10. 3. Total return for 2012 excludes MACM portfolio transition month of February 2012. Though the market value of the MACM portfolio increased during this period, we are precluded from including this month in the aggregate returns. 4. Overnight money market fund balances, such as those held in PFM Funds Government Series, are not included in the above balances. Historically, these balances have represented less than 1% of the portfolio balance. TCNJ INVESTMENT PERFORMANCE SUMMARY TCNJ is committed to the long-term success of its investment program and has positioned the portfolio accordingly. Asset allocation decisions will continue to be made with the goal of increasing the fiscal strength of TCNJ's aggregate portfolio by diversifying assets, reducing volatility, and enhancing earnings potential. And, as always, TCNJ will continue to stress the prudent management of its portfolio, with safety of principal as its core objective. e table below reflects the cash flows and net appreciation of the portfolio since its inception in 2011. INVESTMENT RETURNS Overall, the aggregate portfolio returned 2.5% for the fiscal year ending June 30, 2015. e rally in domestic equity markets boosted the College's overall portfolio performance, while the short-duration fixed income portfolio provided steady income. 2% 4% 6% 8% 10% 12% 14% 16% 18% TCNJ: Short-Duration Fixed BM: ML 1-3 Year Corp/Govt "A-AAA" Rated TCNJ: 70/30 MACM BM: Blended 70/30 Equity/Fixed Income 3 TCNJ: Aggregate Portfolio 0% 1.03 Fiscal Year to Date at 6.30.14 Fiscal Year to Date at 6.30.15 Since Inception 1, 2, 4 1.03 18.06 16.97 8.66 .71 .65 3.56 1.43 2.5 .91 .98 10.26 8.86 4.46 1."TCNJ: Short-Duration Fixed" performance inception date is December 31, 2010. 2."TCNJ: 70/30 MACM" performance inception date is February 29, 2012. 3."Blended 70/30 MACM Equity/Fixed Income" consists of the following asset allocation weighting: 39% Russell 3000 Index, 24% MSCI All Country World Index ex US, 3.5% FTSE NAREIT Equity REITs, 3.5% DJ UBS Commodities, and 30% Barclays Aggregate Index. 4. "TCNJ: Aggregate" performance inception date is February 29, 2012. Despite the interest rate challenges during the fiscal year, the College's Short-Duration Fixed Income portfolio has generated solid returns while adhering to the investment policy mandates of safety, liquidity, and yield. Over the past 12 months, the Short-Duration Fixed Income portfolio generated a gross return of 0.71%, while the MACM generated a gross return of 3.56%, both beating their respective benchmarks as shown in the table below:

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