For the quarter ended December 31, 2014, the Managed Pool rose 1.1%, slightly outperforming our benchmark for the period. The annual return was strong, at 5.8%, with long-term returns outpacing the benchmark in each period. The Fund's market value at the end of the quarter closed at $109.6 million. Both the Income and Socially Responsible pools also outperformed their benchmarks for the quarter and year.

Quarterly results continue to demonstrate the benefits of diversification: performance with substantially less volatility than the general equity markets. And while individual manager performance will ebb and flow depending on market conditions, active management is anticipated to outperform indices over substantial periods of time.  

Asset class performance was mixed by quarter's end, with domestic equities, flexible capital and fixed income showing gains. Several of the portfolio's managers were exceptionally strong performers in both absolute and relative terms: Farallon, Elliott and Prince Street all reflected significant return above benchmarks.

Faced with an unpredictable global market environment, the BTCF Investment Committee remains cautious, making only modest adjustments in asset allocation and identifying managers with track records suitable to the current environment and constituent funding needs.

*As of December 31, 2014, the asset mix was 61.7% global public equity, 6.1% global private equity, 14.8% flexible capital, 13% credit strategies, 1.2% inflation hedging and 3.2% liquid capital.