KENTUCKY STATE UNIVERSITY Regular Meeting of the Board of Regents External Relations and Development Committee October 22, 2015 4:00 p.m to 5:30 p.m Cooperative Extension Building, Conference Room Frankfort, Kentucky

Endowment Management Report

As of September 30, 2015, the Kentucky State University portfolio had a market value of $14,398,839.91.

The quarter ending September 30, 2015 saw the biggest quarterly decline for equity markets in four years, with the S&P 500 down 6.7% for the year. Two things contributing to this downward pressure include the slowdown in China and the Federal Reserve's decision not to raise short-term interest rates at their September meeting. Fundamentals in the U.S. remain strong and continue to improve, yet some investors question whether the U.S. has the ability to carry the global economy.

A report showed that the U.S. economy expanded more than previously forecast in the second quarter boosted by gains in consumer spending and construction. GDP rose at a 3.9% annualized rate, compared with a prior estimate of 3.7%.

We continue to favor developed international equities, especially Europe and Japan as those economies enjoy the tailwind of central bank accommodation.

The performance report will be presented by Fifth Third Bank on October 22.

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