Association of Graduates – USAF Academy Investment Committee Report Monday, 10 September 2018 Fiscal Year 2016 Association of Graduates – USAF Academy Investment Committee Report Rod Hennek, Chairman William Jennings, PhD Lou Kingsland Kathleen Barchick Jack Fry William Thompson, Ex-Officio Alton Parrish, Ex-Officio

Investment Committee Members Monday, 10 September 2018 Investment Committee Members Roderick E. Hennek, Class of ’75, MBA 31 years with Morgan Keegan/Raymond James Managing Partner of the Atlanta Consulting Group Investment Consultant with over $17.5 billion under advisement 65% of client base are not for profit institutions Sits on the Fifth Congressional District of Georgia U.S. Service Academy Selection Board 1 1

Investment Committee Members Monday, 10 September 2018 Investment Committee Members William W. Jennings, PhD, CFA, CPA Member or chairman of various investment committees with assets over $25 billion in pension and endowment funds including Air Force Aid Society, Falcon Foundation, Caring for Colorado Foundation, and Air Force Services NAF and NAF UK pension Professor of Finance and Investments – U.S. Air Force Academy, overseeing instruction to over 1,000 cadets per year 2 2

Investment Committee Members Monday, 10 September 2018 Investment Committee Members Louis Kingsland, Class of ‘59, M.S. Chairman Investment Policy Committee, Strategic Investment Solutions, Inc. (a money management consulting firm) Investment Management Consultant with Wilshire Associates, Callan Associates with expertise in asset allocation, investment style evaluation, manager structure analysis and performance attribution Executive VP Mellon Capital Markets in charge of investment technology Deputy Mission Director of NASA’s Viking Mars Lander 3 3

Investment Committee Members Kathleen Barchick, Class of ’89, MBA, CFA Co-founder of Cliffwater LLC in 2004, a $78 billion investment advisory firm focused on asset allocation and alternative investments Investment consultant at Wilshire Associates for 10 years, focused on asset allocation, manager selection, portfolio construction, and performance analysis Member of Investment Committees at Air Force Aid Society and Falcon Foundation

Investment Committee Members Monday, 10 September 2018 Investment Committee Members Jack Fry, Class of ’67, M.S., M.A. Director, Association of Graduates Board Treasurer, Association of Graduates Chairman, Association of Graduates/Board of Directors Finance & Investment Committee Former Financial Advisor/Registered Representative Edward Jones Investments 5 5 5 5

Investments: Dollar Summary + Last 6 Years 9/10/2018 Monday, 10 September 2018 Investments: Dollar Summary + Last 6 Years   Inception - Balance FY 2010 FY 2011 FY 2012* FY 2013* FY 2014 FY2015 FY2016 Beginning Value 22,466,604 25,253,586 28,297,769 28,667,759 29,167,107 38,739,143 40,450,631 18,952,000 Added/(Withdrawn) 734,233 (1,636,109) 1,712,100 (2,748,812) 4,039,944 1,087,012 4,177,509 8,827,710 Gains/(Losses) 2,052,749 4,680,292 (1,342,110) 3,248,160 5,532,092 624,476 (3,425,895) 13,422,535 Ending Value 41,202,245 Real Estate/REIT** (245,012) (125,593) (126,635) (170,972) (158,679) (24,590) 7,556 (1,072,477) US Stocks 555,884 2,192,762 142,767 1,937,020 3,813,050 920,862 (1,039,212) 9,393,468 International Stocks 516,919 1,748,054 (1,536,365) 1,010,406 1,226,122 (335,928) (2,070,022) 1,076,966 Fixed Income 747,992 413,215 171,631 (74,556) 179,866 (15,486) (41,758) 3,629,543 Alternatives 476,966 451,854 6,492 546,262 471,733 79,618 (282,459) 395,035 Total Fund *includes reclassification of mutual funds to investments ***Inception 2003 Fiscal Year is July - June 6 6

Short-term Assets: Including Cash Held for Operations Monday, 10 September 2018 Short-term Assets: Including Cash Held for Operations Operating Cash $2,122,454 Cash available to invest 814,526 Total (at June 30, 2016) $2,936,980 7

Investment Decisions Bond Portfolio Shorten Duration 9/10/2018 Monday, 10 September 2018 Investment Decisions Bond Portfolio Shorten Duration Replaced Loomis Sayles with TCW Total Return I Shares Overweight Bonds Relative to its Long-term Target Alternatives Sold holdings of Archstone Offshore; holding in investable funds until selection of new manager 10 10

Investments: Asset Allocation 9/10/2018 Monday, 10 September 2018 Investments: Asset Allocation Estimated Fund Expenses Spending 3.50% Money Management Fees 0.83% AOG Fees (endowments & agencies) 0.75% Inflation 2.10% Total Fund 7.18% 11 11