Delaware College Investment Plan DRAFT Delaware Higher Education Office Conference Room Board of Trustees Meeting December 13, 2013

Trustees Attending: Others Present: José Echeverri, Chair Shana Payne, Director, DE Higher Education David Gregor, Secretary of Finance, Designee Keith Bernhardt, Fidelity Investments, Tele Santosh Viswanathan Christopher Hattoy, Fidelity Investments, Tele Dan Scholl, Tele Peter Walsh, Fidelity Investments, Tele Karen Keegan, DE Higher Education

José Echeverri called the meeting to order at 1:05 p.m.

Mr. Echeverri started with introductions of the Delaware College Investment Plan board.

Minutes approval – May and August 2013, Santosh Viswanathan approved and David Gregor seconded the approval.

Christopher Hattoy reviews the agenda for the board meeting. Peter Walsh initiates overview of the Performance Review Deck. Very good 3 months, on page 3, overview of the heat map of how asset classes have performed. You can see a bit of a rotation, bond market in positive territories. This shows a lot of volatility. Want to make sure we’re fully diversified as turbulent times continue. On next page, objective is college savings, front and center on anything we do. Page 5 is the glide path. On page 6 is the active age based and static portfolios, good performance for the Fidelity funds. On page 7, same type of representation, moving into the multi-firm showing performance versus the composite benchmarks. Top left shows a very strong 3-month performance. Out performs across all the portfolios during the quarter versus the composite benchmark. On page 8, Index Portfolios, the glide path is very similar to the active portfolios. On page 9, the performance is represented by the fees. On page 10, index fidelity versus the multi-firm. The active portfolios are out-performing the index portfolios. On page 11, index portfolios versus the composite benchmarks. Well represented against widely known benchmarks, performing right where they should be. Next couple pages are showing changes, on page 13, absolute changes from the 3 quarter, as you can see, very little change is reflected. On the next couple of pages are performing as necessary. On page 30, the same thing, looking at the multi-firm portfolios, same type of return that would be expected, where the active portfolios are out-performing the index portfolios.

Christopher Hattoy discusses the Business Results Deck. This is a look, year to date, at where Fidelity stands with new account growth, 2012 new accounts and 2013 new accounts. The yellow portion shows the Q3 timeframe, July and September underperformed slightly, up 4 accounts, but in all was flat for the quarter. On slide 3, this is taking gross sales into account. In August we had a good month and in September as well, in July it went down. Good overall performance from January thru September. Overall gross sales have been positive. On slide 4, this refers to the net sales, total amount of money that’s coming into the plan, less any distributions. In July and August there was a significant

1 dip, July and August of last year had the same impact. This is a typical look at the July and August season. On slide 5, total accounts are positive for the year, up 4%. New accounts are slightly down, overall a flat growth, not down by too much. Growth sales are up slightly. One thing to highlight is the distributions, this number is a growing piece of the business with the plan as mature as it is, established in ’98 and ’99, the number of distributions are growing every year.

Discussed future DCIP board meeting dates.

Meeting was adjourned at 2:15 p.m.

Respectfully submitted,

Karin Gotcher

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