USF INVESTMENT REPORT As of September 30, 2015

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1 As of September 30, 205 (In Thousands) INVESTMENT PORTFOLIO BALANCES Combined ASSET CLASS USF TOTAL INVESTMENTS FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) $266,556 $200,834 $27,23 $7,367 $,587 $,472 $464 $6,4 $55 $,470 Fixed Income - Domestic (+ 80 days) $42,82 $333,88 $58,870 $5,526 $8 $3,897 $43 SUBTOTAL $678,738 $0 $534,75 $27,23 $76,237 $27,3 $,472 $472 $0,038 $586 $,470 Fixed Income - Domestic $86,749 $85,256 $2,298 $5,403 $,0 Equity - Domestic $200,632 $5,727 $42,8 $4,089 $4,00 $9,583 $,976 Equity - Foreign $4,676 $00,453 $37,67 $2,707 $3,000 $5,663 $,308 Real Assets $43,70 $3,923 $9,847 $860 $,400 $,464 $46 Alternative Investments $72,72 $43,778 $25,534 $,80 $3,400 $2,008 $570 SUBTOTAL $544,939 $43,37 $4,729 $0 $,35 $,900 $0 $0 $24,2 $5,38 $0 as of 9/30/205 $,223,677 $43,37 $649,444 $27,23 $87,372 $39,03 $,472 $472 $34,59 $5,967 $,470 as of 9/30/204 $,203,22 $438,7 $599,24 $25,478 $89,740 $48,273 $,950 $,55 $29,24 $5,570 $857 VARIANCE FROM THE PRIOR YEAR $20,456 ($25,034) $50,203 $,735 ($2,368) ($9,260) ($478) ($,079) $4,945 $397 $63 FOUNDATION totaling $,35,000 invested in the ENDOWMENT Fund are eliminated in the Consolidated Investment balances. RESEARCH FOUNDATION totaling $8,948,000 invested in the ENDOWMENT Fund are eliminated in the Consolidated Investment balances. ALUMNI ASSOCIATION totaling $5,959,000 invested in the Foundation OPERATING and ENDOWMENT Funds are eliminated in the Consolidated Investment balances. [ Page of 6 ]

2 As of September 30, 205 PORTFOLIO ASSET ALLOCATION Policy ASSET CLASS LIMITS Minimum Maximum FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA 2 MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) 0% 00% 38% 00% 23% 43% 00% 98% 6% 27% 00% Fixed Income - Domestic (80 days +) 0% 90% 62% 77% 57% 2% 39% 73% TOTAL 0% 00% 00% 00% 00% 00% 00% 00% 00% 00% Fixed Income - Domestic 5% 40% 2% 5% 2% 35% 22% 2% 0% 20% 5% Equity - Domestic 25% 50% 37% 30% 37% 25% 40% 37% Equity - Foreign 5% 35% 24% 25% 24% 25% 23% 24% Real Assets 0% 20% 8% 0% 8% 5% 6% 8% Alternative Investments 0% 20% % 5% 0% 0% 8% 0% TOTAL 00% 00% 0% 00% 00% 0% 0% 00% 00% 0% Pursuant to Section 8 of the USF Investment Policy, the USF Investment Committee has approved a Transition Plan including target asset allocations which are in compliance with the Policy Limits for each asset class. As the UNIVERSITY is implementing the Long-Term portion of its investment portfolio over a period of time according to its Transition Plan, the allocations shown above represent the target allocations rather than actual allocations. 2 Pursuant to Section 8 of the USF Investment Policy, the UMSA Investment Committee has approved a Transition Plan including target asset allocations which are in compliance with the Policy Limits for each asset class. As UMSA is implementing the Long-Term portion of its investment portfolio over a period of time according to its Transition Plan, the allocations shown above represent the target allocations rather than actual allocations. [ Page 2 of 6 ]

3 As of September 30, 205 PERFORMANCE OBJECTIVE - YEAR ANNUAL AVERAGE ASSET CLASS FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) 0.20% 0.03% 0.40% 0.5% 0.5% 0.5% 0.07% 0.40% 0.5% Fixed Income - Domestic (80 days +).90% 2.39%.93% 2.00%.90% 2.39% Fixed Income - Domestic (0.09)% (0.09)% 0.60% (0.09)% Equity - Domestic (0.70)% (.50)% (0.70)% (.50)% (0.99)% (0.70)% Equity - Foreign (9.30)% (0.64)% (9.30)% (0.64)% (.20)% (9.30)% Real Assets (4.30)% (9.60)% (4.30)% (9.60)% (4.30)% (4.30)% Alternative Investments NA (.0)% NA (.0)% NA NA WEIGHTED PORTFOLIO RETURN (.00)% (0.40)% 0.03% 0.70% (0.36)% 0.5% 0.8% (0.69)% (0.7)% 0.5% POLICY INDEX / WEIGHTED INDEX RETURN (2.90)% (0.40)% 0.0%.40% (0.40)% 0.00% 0.03% (.24)% (2.48)% 0.00% RELATIVE PORTFOLIO RETURN.90% 0.00% 0.02% (0.70)% 0.04% 0.5% 0.5% 0.55%.76% 0.5% COMBINED -YEAR RETURNS (0.52)% COMBINED -YEAR INDEX RETURNS (.2)% WEIGHTED -YEAR RELATIVE RETURNS 0.60% FOUNDATION and Operating Fund Performance and Weighted Index Returns are based on -year average daily balances, not period-end balances. [ Page 3 of 6 ]

4 As of September 30, 205 PRIMARY PERFORMANCE OBJECTIVE - 3 YEAR ANNUAL AVERAGE ASSET CLASS FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) 0.20% 0.03% 0.30% 0.5% 0.5% 0.5% 0.07% 0.30% 0.5% Fixed Income - Domestic (80 days +).50% 2.%.60%.0%.80% 2.% Fixed Income - Domestic 2.93% 2.93% 2.93% 2.93% Equity - Domestic 2.50%.50% 2.50%.50% 2.50% 2.50% Equity - Foreign 4.60% 3.05% 4.60% 3.05% 4.60% 4.60% Real Assets (0.70)% (5.80)% (0.70)% (5.80)% (0.70)% (0.70)% Alternative Investments NA 5.40% NA 5.40% NA NA WEIGHTED PORTFOLIO RETURN 8.40%.70% 0.03% 2.00%.74% 0.5% 0.7% 6.5% 7.74% 0.5% POLICY INDEX / WEIGHTED INDEX RETURN 7.30%.60% 0.02% 2.20%.63% 0.0% 0.2% 5.38% 6.70% 0.0% RELATIVE PORTFOLIO RETURN.0% 0.0% 0.0% (0.20)% 0.% 0.05% 0.05% 0.77%.04% 0.05% COMBINED 3-YEAR RETURNS 4.03% COMBINED 3-YEAR INDEX RETURNS 3.60% WEIGHTED 3-YEAR RELATIVE RETURNS 0.43% FOUNDATION and Operating Fund Performance and Weighted Index Returns are based on 3-year average daily balances, not period-end balances. [ Page 4 of 6 ]

5 As of September 30, 205 PERFORMANCE OBJECTIVE - 5 YEAR ANNUAL AVERAGE ASSET CLASS FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) 0.20% 0.03% 0.20% 0.5% 0.5% 0.5% 0.09% 0.20% 0.5% Fixed Income - Domestic (80 days +) 2.00% 3.30% 2.29%.50% NA % Fixed Income - Domestic 4.73% 4.73% 4.73% 4.73% Equity - Domestic 3.40% NA % NA % 3.40% Equity - Foreign 3.20% 4.20% 3.20% 4.20% 3.20% 3.20% Real Assets 2.70% (.60)% 2.70% (.60)% 2.70% 2.70% Alternative Investments NA 4.20% NA 4.20% NA NA WEIGHTED PORTFOLIO RETURN 8.80% 2.00% 0.03% 3.00% 2.04% 0.5% 0.7% 7.00% 8.9% 0.5% POLICY INDEX / WEIGHTED INDEX RETURN 8.0%.90% 0.02% 3.20%.93% 0.0% 0.3% 6.55% 7.5% 0.0% RELATIVE PORTFOLIO RETURN 0.70% 0.0% 0.0% (0.20)% 0.2% 0.05% 0.05% 0.46% 0.68% 0.05% COMBINED 5-YEAR RETURNS 4.42% COMBINED 5-YEAR INDEX RETURNS 4.3% WEIGHTED 5-YEAR RELATIVE RETURNS 0.29% FOUNDATION and Operating Fund Performance and Weighted Index Returns are based on 5-year average daily balances, not period-end balances. 2 Information not available, certain investments have not been in existance for 5 years. [ Page 5 of 6 ]

6 As of September 30, 205 SECONDARY PERFORMANCE OBJECTIVE - 5 YEAR ANNUAL AVERAGE ASSET CLASS FOUNDATION UNIVERSITY FINANCING FOUNDATION UMSA MSSC HPCC RESEARCH ALUMNI SUNDOME Cash Equivalent (< 80 days) 0.20% 0.03% NA 5 0.5% 0.5% 0.7% 0.09% NA 5 0.5% Fixed Income - Domestic (80 days +) 2.00% 3.30% 2.29%.50% NA % Fixed Income - Domestic 4.73% 4.73% 4.73% 4.73% Equity - Domestic 3.40% NA % NA % 3.40% Equity - Foreign 3.20% 4.20% 3.20% 4.20% 3.20% 3.20% Real Assets 2.70% (.60)% 2.70% (.60)% 2.70% 2.70% Alternative Investments NA 4.20% NA 4.20% NA NA WEIGHTED PORTFOLIO RETURN 8.80% 2.00% 0.03% 3.00% 2.04% 0.5% 0.7% 7.00% 8.9% 0.5% INFLATION BENCHMARK - CPI INDEX.73%.73%.73%.73%.73%.73%.73%.73%.73%.73% RETURN OBJECTIVE - LONG-TERM % 0.88% 0.00% 0.58%.53% 0.00% 0.00% 3.22% 4.55% 0.00% RETURN OBJECTIVE - ACTIVELY MANAGED % 0.02% 0.00% 0.05% 0.03% 0.00% 0.00% 0.26% 0.37% 0.00% RELATIVE PORTFOLIO RETURN 4 2.4% (0.64)% (.7)% 0.64% (.25)% (.58)% (.56)%.79%.53% (.58)% COMBINED 5-YEAR RETURNS 4.42% INFLATION BENCHMARK - CPI INDEX.73% COMBINED RETURN OBJECT - LONG-TERM 2.5% COMBINED RETURN OBJECT - ACTIVE MGR 0.5% WEIGHTED 2-MONTH RELATIVE RETURNS 0.40% FOUNDATION and Operating Fund Performance is based on 5-year average daily balances, not period-end balances. 2 Only Long-Term Funds are subject to the Policy Return Objective of 3.0% for fixed income and 5.0% for all other asset classes. The Return Objective is calculated based on period-end balances, not 5-year daily average balances. Thus, the Relative Portfolio Return may be affected by changes in asset classes over this period. The Return Objective is weighted between the Short Term Portfolio and the Long Term Portfolio based on period-end balances. 3 Only Long-Term Funds are subject to the Policy Return Objectives for Actively Managed Portfolios of 0.5%. The Return Objective is calculated based on period-end balances, not 5-year daily average balances. Thus, the Relative Portfolio Return may be affected by changes in asset classes over this period. The Return Objective is weighted between the Short Term Portfolio and the Long Term Portfolio based on period-end balances. 4 All entities employ 5-year index benchmarks to assess investment performance in addition to the Policy's real return Secondary Performance benchmark. 5 Information not available, certain investments have not been in existance for 5 years. [ Page 6 of 6 ]