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HomeMy WebLinkAboutReports - 2018.12.31 - 31235<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2903" DocumentTypeId="2" EffectiveDate="12/31/2018" Interval="1" /> Investment Performance Review Period Ending December 31, 2018 January 17, 2019 Preliminary Oakland County ERS Defined Benefit Plan Monthly Flash Report Market Update Russell Indices Style Returns Equities Month 3 M YTD 1 Year 3 Yr Ann 5 Yr Ann V B G V B G S&P 500 Total Return (9.03)(13.52)(4.38)(4.38)9.25 8.49 Russell Midcap Index (9.93)(15.38)(9.08)(9.08)7.02 6.24 Russell 2000 Index (11.88)(20.21)(11.03)(11.03)7.34 4.40 Russell 1000 Growth Indx (8.60)(15.89)(1.52)(1.52)11.14 10.40 Russell 1000 Value Index (9.61)(11.73)(8.28)(8.28)6.93 5.93 Russell 3000 Index (9.31)(14.31)(5.25)(5.25)8.95 7.90 MSCI EAFE NR (4.85)(12.54)(13.79)(13.79)2.87 0.53 MSCI EM NR (2.66)(7.47)(14.58)(14.58)9.24 1.65 Fixed Income Month 3 M YTD 1 Year Mod. Adj. Duration Yield to Worst Currencies 12/31/18 12/31/17 12/31/16 U.S. Aggregate 1.84 1.64 0.01 0.01 5.87 3.28 Euro Spot 1.15 1.20 1.05 U.S. Corporate Investment Grade 1.47 (0.18)(2.51)(2.51)7.10 4.20 British Pound Spot 1.28 1.35 1.23 U.S. Corporate High Yield (2.14)(4.53)(2.08)(2.08)3.96 7.95 Japanese Yen Spot 109.69 112.69 116.96 Global Aggregate 2.02 1.20 (1.20)(1.20)6.96 2.03 Swiss Franc Spot 0.98 0.97 1.02 Key Rates 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 Commodities 12/31/18 12/31/17 12/31/16 3 Month 2.35 1.38 0.50 0.16 0.04 Oil 45.41 57.40 56.24 US 2 Year 2.49 1.88 1.19 1.05 0.66 Gasoline 2.26 2.49 2.34 US 10 Year 2.68 2.41 2.44 2.27 2.17 Natural Gas 2.94 3.06 3.16 US 30 Year 3.01 2.74 3.07 3.02 2.75 Gold 1,281.30 1,337.70 1,187.30 ICE LIBOR USD 3M 2.81 1.69 1.00 0.61 0.26 Silver 15.54 17.57 16.50 Euribor 3 Month ACT/360 (0.31)(0.33)(0.32)(0.13)0.08 Copper 263.10 335.95 252.20 Bankrate 30Y Mortgage Rates Na 4.51 3.85 4.06 3.90 3.99 Corn 375.00 393.25 397.50 Prime 5.50 4.50 3.75 3.50 3.25 BBG Commodity TR Idx 159.72 179.96 176.94 December 31, 2018 Index Returns (%) L -8.3 -4.8 -1.5 L 13.6 21.7 30.2 S M -12.3 -9.1 -4.8 M 7.8 13.3 18.5 25.3 Levels (%)Levels 14.6 22.1 YTD 2017 Index Returns (%)Levels S -12.9 -11.0 -9.3 6.5 4.1 0.8 -0.3 -2.2 -4.4 -8.4 -12.5 -13.0 -13.3 -14.7 -18.1-20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 YTD Sector Returns 38.8 23.8 23.0 22.1 22.1 21.8 21.0 13.5 12.1 10.8 -1.0 -1.3-5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2017 Sector Returns Page 1 Executive Summary Policy Target In Policy Outside Policy 0.0%8.0%16.0%24.0%32.0%40.0%48.0%56.0%60.0% Total Cash Composite (0.3%) Total Real Asset (10.0%) Total Fixed Income Composite (38.0%) Total Long/Short Equity Composite (6.0%) Total International Equity (13.0%) Total Domestic Equity (32.7%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Minimum Allocation (%) Maximum Allocation (%) Target Allocation (%) Min. Rebal. ($000) Max. Rebal. ($000) Target Rebal. ($000) Total Fund Composite 706,075,063 100.0 N/A N/A 100.0 --- Total Domestic Equity 230,654,389 32.7 10.0 50.0 37.5 -160,046,882 122,383,143 34,123,760 Total International Equity 92,007,481 13.0 5.0 20.0 12.5 -56,703,727 49,207,532 -3,748,098 Total Long/Short Equity Composite 42,217,377 6.0 0.0 7.5 5.0 -42,217,377 10,738,253 -6,913,623 Total Fixed Income Composite 268,261,246 38.0 10.0 55.0 35.0 -197,653,740 120,080,039 -21,134,974 Total Real Asset 70,844,936 10.0 0.0 15.0 10.0 -70,844,936 35,066,323 -237,430 Total Cash Composite 2,089,635 0.3 0.0 5.0 0.0 -2,089,635 33,214,118 -2,089,635 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of December 31, 2018 Page 2 Executive Summary Policy Target In Policy Outside Policy 0.0%8.0%16.0%24.0%32.0%40.0%48.0%56.0%60.0% Total Cash Composite (0.3%) Total Real Asset (10.0%) Total Fixed Income Composite (38.0%) Total Long/Short Equity Composite (6.0%) Total International Equity (13.0%) Total Small Cap Equity Composite (6.7%) Total Mid Cap Equity Composite (7.0%) Total Large Cap Equity Composite (19.0%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Target Rebal. ($000) Total Fund Composite 706,075,063 100.0 100.0 - Total Large Cap Equity Composite 134,037,634 19.0 25.0 42,481,132 Total Mid Cap Equity Composite 49,319,089 7.0 6.3 -5,189,398 Total Small Cap Equity Composite 47,297,666 6.7 6.3 -3,167,975 Total International Equity 92,007,481 13.0 12.5 -3,748,098 Total Long/Short Equity Composite 42,217,377 6.0 5.0 -6,913,623 Total Fixed Income Composite 268,261,246 38.0 35.0 -21,134,974 Total Real Asset 70,844,936 10.0 10.0 -237,430 Total Cash Composite 2,089,635 0.3 0.0 -2,089,635 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of December 31, 2018 Page 3 November 30, 2018 : $733,470,818 December 31, 2018 : $706,075,063 Allocation Market Value Allocation SSgA S&P 500 34,312,891 4.7¢ SSgA S&P 500 Equal Weighted Index 33,687,676 4.6¢ T. Rowe Price 79,812,002 10.9¢ Seizert Capital Partners 15,676,571 2.1¢ Wedge Capital Partners 13,941,529 1.9¢ TimesSquare 12,209,410 1.7¢ Munder Capital 12,915,672 1.8¢ Lee Munder (LMCG)24,591,396 3.4¢ Loomis Small Cap 29,216,807 4.0¢ Lazard 35,084,901 4.8¢ Pictet 44,772,294 6.1¢ Berkeley Street 17,361,785 2.4¢ ABS Global 42,217,377 5.8¢ CS McKee 133,238,184 18.2¢ Loomis Fixed Income 76,712,058 10.5¢ Franklin Templeton 43,080,604 5.9¢ Churchill Senior Loan Fund 12,604,820 1.7¢ Morgan Stanley 42,048,803 5.7¢ JPM Euro Property 291,306 0.0¢ Prudential PRISA II 18,280,851 2.5¢ Alidade Capital Fund IV 2,954,069 0.4¢ Walton Street Real Estate 3,006,105 0.4¢ AEW Real Estate 1,151,175 0.2¢ ValStone Opportunity Fund V 2,064,215 0.3¢ Cash and Equivalents Account 81,206 0.0¢ Private Markets Cash 2,157,111 0.3¢ Allocation Market Value Allocation SSgA S&P 500 31,216,390 4.4¢ SSgA S&P 500 Equal Weighted Index 30,325,699 4.3¢ T. Rowe Price 72,495,546 10.3¢ Seizert Capital Partners 14,081,495 2.0¢ Wedge Capital Partners 12,432,194 1.8¢ TimesSquare 11,088,467 1.6¢ Munder Capital 11,716,933 1.7¢ Lee Munder (LMCG)21,624,390 3.1¢ Loomis Small Cap 25,673,276 3.6¢ Lazard 33,626,699 4.8¢ Pictet 41,580,643 5.9¢ Berkeley Street 16,800,139 2.4¢ ABS Global 42,217,377 6.0¢ CS McKee 135,264,868 19.2¢ Loomis Fixed Income 77,660,400 11.0¢ Franklin Templeton 42,731,158 6.1¢ Churchill Senior Loan Fund 12,604,820 1.8¢ Morgan Stanley 42,048,803 6.0¢ JPM Euro Property 291,306 0.0¢ Prudential PRISA II 18,280,851 2.6¢ Alidade Capital Fund IV 3,663,532 0.5¢ Walton Street Real Estate 3,182,413 0.5¢ AEW Real Estate 1,313,816 0.2¢ ValStone Opportunity Fund V 2,064,215 0.3¢ Cash and Equivalents Account 80,351 0.0¢ Private Markets Cash 2,009,284 0.3¢ Asset Allocation By Manager Total Fund Composite As of December 31, 2018 Page 4 Financial Reconciliation Month to Date Market Value 10/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 12/31/2018 Total Fund Composite 760,349,975 -1,098,065 --128,924 -5,500 3,061,115 -58,299,668 706,075,063 Total Equity Composite 422,897,242 -1,133 38,171 --119,030 -4,110 1,170,925 -59,102,818 364,879,246 Total Domestic Equity 272,380,948 -1,133 ----1,804 801,715 -42,525,336 230,654,389 Total Large Cap Equity Composite 155,284,989 -----146 433,086 -21,680,296 134,037,634 SSgA S&P 500 36,091,569 -------4,875,179 31,216,390 SSgA S&P 500 Equal Weighted Index 35,301,653 -------4,975,954 30,325,699 T. Rowe Price 83,891,767 -----146 433,086 -11,829,162 72,495,546 Total Mid Cap Equity Composite 58,711,307 -----936 205,533 -9,596,815 49,319,089 Seizert Capital Partners 16,465,395 -----341 68,833 -2,452,392 14,081,495 Wedge Capital Partners 15,095,855 -----429 80,592 -2,743,824 12,432,194 TimesSquare 13,055,234 -----121 23,816 -1,990,462 11,088,467 Munder Capital 14,094,823 -----44 32,291 -2,410,137 11,716,933 Total Small Cap Equity Composite 58,384,652 -1,133 ----723 163,096 -11,248,226 47,297,666 Lee Munder (LMCG)26,669,123 -----241 111,094 -5,155,587 21,624,390 RBC Global 1,131 -1,133 ----2 -- Loomis Small Cap 31,714,398 -----482 52,000 -6,092,639 25,673,276 Total International Equity 105,845,250 -38,171 --119,030 -2,305 369,210 -14,123,815 92,007,481 Lazard 37,429,973 -----2,305 211,839 -4,012,807 33,626,699 Pictet 50,247,950 ----80,859 -157,371 -8,743,820 41,580,643 Berkeley Street 18,167,327 -38,171 --38,171 ---1,367,188 16,800,139 Total Long/Short Equity Composite 44,671,044 -------2,453,667 42,217,377 ABS Global 44,671,044 -------2,453,667 42,217,377 Total Fixed Income Composite 263,164,570 2,573,124 ----1,370 1,868,508 656,413 268,261,246 Total Domestic Fixed Income 210,999,380 -----1,370 1,868,508 58,750 212,925,268 CS McKee 133,488,785 -----541 1,192,522 584,102 135,264,868 Loomis Fixed Income 77,510,594 -----829 675,986 -525,352 77,660,400 Total Global Fixed 42,133,494 ------597,663 42,731,158 Franklin Templeton 42,133,494 ------597,663 42,731,158 Private Fixed Income 10,031,696 2,573,124 ------12,604,820 Churchill Senior Loan Fund 10,031,696 2,573,124 ------12,604,820 Financial Reconciliation Total Fund Quarter To Date Ending December 31, 2018 Page 5 Financial Reconciliation Total Fund Quarter To Date Ending December 31, 2018 Market Value 10/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 12/31/2018 Total Real Asset 69,523,111 1,321,825 9,894 --9,894 -26,587 -26,587 70,844,936 Total Real Estate 67,458,896 1,321,825 9,894 --9,894 -26,587 -26,587 68,780,721 Morgan Stanley 42,048,803 -------42,048,803 JPM Euro Property 291,306 -------291,306 Prudential PRISA II 18,280,851 -------18,280,851 Alidade Capital Fund IV 2,680,656 982,876 ----26,587 -26,587 3,663,532 Walton Street Real Estate 3,006,105 176,308 9,894 --9,894 ---3,182,413 AEW Real Estate 1,151,175 162,641 ------1,313,816 Private Investments 2,064,215 -------2,064,215 ValStone Opportunity Fund V 2,064,215 -------2,064,215 Total Cash Composite 4,765,052 -3,893,816 1,050,000 ---20 -4,904 173,323 2,089,635 Cash and Equivalents Account 46,673 -1,016,631 1,050,000 ---20 329 -80,351 Private Markets Cash 4,718,379 -2,877,185 -----5,234 173,323 2,009,284 Page 6 Asset Allocation & Performance Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Fund Composite 706,075,063 100.0 -3.83 -7.26 -7.26 -3.92 -3.92 5.86 5.05 7.70 8.93 8.15 10/01/1986 Total Fund Policy Index -3.88 -7.16 -7.16 -3.50 -3.50 5.90 5.10 7.88 9.19 8.60 Total Equity Composite 364,879,246 51.7 -7.81 -13.70 -13.70 -9.25 -9.25 6.45 5.11 9.98 11.35 9.22 10/01/1986 Total Equity Index -8.30 -14.11 -14.11 -8.48 -8.48 7.45 6.65 11.42 12.26 9.58 Total Fixed Income Composite 268,261,246 38.0 0.99 0.95 0.95 0.44 0.44 3.10 2.86 3.01 4.91 6.30 10/01/1986 Total Fixed Income Index 1.34 0.75 0.75 -0.38 -0.38 2.11 2.30 1.83 3.22 6.07 Total Real Asset 70,844,936 10.0 0.00 0.00 0.00 6.80 6.80 8.58 10.99 10.47 5.55 4.57 07/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 6.48 6.48 7.62 10.03 10.71 6.81 5.24 Total Cash Composite 2,089,635 0.3 Asset Allocation & Performance Total Fund Composite As of December 31, 2018 Page 7 Asset Allocation & Performance Total Fund Composite As of December 31, 2018 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Domestic Equity 230,654,389 32.7 -10.03 -15.32 -15.32 -7.32 -7.32 N/A N/A N/A N/A N/A 10/01/1986 Total Large Cap Equity Composite 134,037,634 19.0 -9.32 -13.68 -13.68 -5.98 -5.98 8.93 8.49 12.81 12.99 9.05 07/01/2008 SSgA S&P 500 (1.5 bps)31,216,390 4.4 -9.02 -13.51 -13.51 -4.35 -4.35 9.32 8.56 12.78 N/A 12.17 10/01/2009 S&P 500 Index -9.03 -13.52 -13.52 -4.38 -4.38 9.26 8.49 12.70 13.12 12.10 SSgA S&P 500 Equal Weighted Index (4 bps)30,325,699 4.3 -9.98 -14.10 -14.10 N/A N/A N/A N/A N/A N/A -11.72 02/01/2018 S&P 500 Equal Weighted -9.72 -13.90 -13.90 -7.64 -7.64 8.03 7.14 12.36 14.95 -11.59 T. Rowe Price (25 bps)72,495,546 10.3 -9.17 -13.58 -13.58 -3.96 -3.96 9.84 9.17 13.45 N/A 12.55 10/01/2009 S&P 500 Index -9.03 -13.52 -13.52 -4.38 -4.38 9.26 8.49 12.70 13.12 12.10 Total Mid Cap Equity Composite 49,319,089 7.0 -9.91 -16.00 -16.00 -10.63 -10.63 6.63 5.10 10.70 13.19 8.04 07/01/2008 Seizert Capital Partners (60 bps)14,081,495 2.0 -10.17 -14.48 -14.48 -9.71 -9.71 6.68 3.01 N/A N/A 5.01 10/01/2013 Russell Midcap Value Index -10.50 -14.95 -14.95 -12.29 -12.29 6.06 5.44 10.89 13.03 6.84 Wedge Capital Partners (75 bps)12,432,194 1.8 -10.83 -17.64 -17.64 -15.51 -15.51 5.16 5.36 11.64 13.91 6.77 05/01/2007 Russell Midcap Value Index -10.50 -14.95 -14.95 -12.29 -12.29 6.06 5.44 10.89 13.03 5.70 TimesSquare (80 bps)11,088,467 1.6 -9.18 -15.06 -15.06 -3.59 -3.59 9.02 6.99 12.86 N/A 12.95 09/01/2009 Russell Midcap Growth Index -9.07 -15.99 -15.99 -4.75 -4.75 8.59 7.42 12.27 15.12 13.09 Munder (75 bps)11,716,933 1.7 -9.28 -16.87 -16.87 -12.37 -12.37 6.01 5.04 10.56 N/A 12.11 09/01/2009 Russell Midcap Growth Index -9.07 -15.99 -15.99 -4.75 -4.75 8.59 7.42 12.27 15.12 13.09 Total Small Cap Equity Composite 47,297,666 6.7 -12.10 -18.99 -18.99 -7.57 -7.57 6.98 4.34 9.98 12.42 8.69 07/01/2008 Lee Munder (70 bps)21,624,390 3.1 -12.06 -18.92 -18.92 -14.62 -14.62 5.86 4.62 9.86 12.05 8.12 09/01/2005 Russell 2000 Value Index -12.09 -18.67 -18.67 -12.86 -12.86 7.37 3.61 9.57 10.40 5.87 Loomis Small Cap (90 bps)25,673,276 3.6 -12.13 -19.05 -19.05 0.85 0.85 11.27 7.58 N/A N/A 13.29 09/01/2012 Russell 2000 Growth Index -11.68 -21.65 -21.65 -9.31 -9.31 7.24 5.13 11.25 13.52 10.71 Page 8 Asset Allocation & Performance Total Fund Composite As of December 31, 2018 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total International Equity 92,007,481 13.0 -5.33 -13.00 -13.00 -15.67 -15.67 4.31 1.46 6.60 7.89 2.63 07/01/2008 Total International Equity Index -4.49 -11.41 -11.41 -13.78 -13.78 4.98 1.14 5.30 6.15 1.39 Lazard (75 bps)33,626,699 4.8 -4.15 -10.16 -10.16 -11.01 -11.01 4.62 2.47 7.86 9.03 4.83 09/01/2006 MSCI AC World ex USA -4.49 -11.41 -11.41 -13.78 -13.78 4.98 1.14 5.33 7.06 2.84 Pictet (65 bps)41,580,643 5.9 -7.07 -17.10 -17.10 -19.45 -19.45 2.49 0.30 6.41 7.50 0.06 01/01/2008 MSCI EAFE Index -4.83 -12.50 -12.50 -13.36 -13.36 3.38 1.00 6.24 6.81 0.88 Berkeley Street (95 bps)16,800,139 2.4 -3.24 -7.53 -7.53 -14.36 -14.36 10.00 2.50 N/A N/A 2.90 11/01/2012 MSCI Emerging Markets Index -2.60 -7.40 -7.40 -14.25 -14.25 9.65 2.03 3.61 8.39 2.26 Total Long/Short Equity Composite 42,217,377 6.0 0.00 -5.49 -5.49 -3.91 -3.91 1.57 2.21 4.02 N/A 3.76 10/01/2010 ABS Global (100 bps)42,217,377 6.0 0.00 -5.49 -5.49 -3.91 -3.91 1.57 2.70 5.40 N/A 4.68 10/01/2010 HFRI FOF: Strategic Index N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total Domestic Fixed Income 212,925,268 30.2 1.42 0.91 0.91 0.00 0.00 N/A N/A N/A N/A N/A 07/01/2008 CS McKee (35 bps)135,264,868 19.2 1.52 1.33 1.33 0.09 0.09 2.24 2.84 2.44 N/A 3.39 02/01/2010 Blmbg. Barc. U.S. Aggregate Index 1.84 1.64 1.64 0.01 0.01 2.06 2.52 2.10 3.48 3.06 Loomis Fixed Income (30 bps)77,660,400 11.0 1.24 0.19 0.19 -0.15 -0.15 4.30 3.40 4.09 N/A 5.18 04/01/2010 Blmbg. Barc. U.S. Aggregate Index 1.84 1.64 1.64 0.01 0.01 2.06 2.52 2.10 3.48 3.09 Total Global Fixed 42,731,158 6.1 -0.81 1.42 1.42 1.72 1.72 N/A N/A N/A N/A N/A 04/01/2010 Franklin Templeton (60 bps)42,731,158 6.1 -0.81 1.42 1.42 1.72 1.72 3.36 1.38 3.21 N/A 2.90 04/01/2010 JPM Global Government Bond Index 2.48 2.01 2.01 -0.65 -0.65 2.53 1.11 0.32 1.74 1.90 Page 9 Asset Allocation & Performance Total Fund Composite As of December 31, 2018 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Real Estate 68,780,721 9.7 0.00 0.00 0.00 6.77 6.77 N/A N/A N/A N/A 8.96 09/01/2016 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 6.48 6.48 7.62 10.03 10.71 6.81 7.91 Morgan Stanley (84 bps)42,048,803 6.0 0.00 0.00 0.00 6.67 6.67 8.83 11.53 12.31 7.49 6.34 01/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 6.48 6.48 7.62 10.03 10.71 6.81 5.16 Prudential PRISA II (85 bps)18,280,851 2.6 0.00 0.00 0.00 7.87 7.87 8.76 11.51 12.42 N/A 12.43 10/01/2011 NCREIF Property Index 0.00 0.00 0.00 5.27 5.27 6.73 9.03 9.52 7.34 9.62 JPM Euro Property 291,306 0.0 0.00 0.00 0.00 4.11 4.11 8.99 8.09 3.56 N/A 1.27 04/01/2009 NCREIF Property Index 0.00 0.00 0.00 5.27 5.27 6.73 9.03 9.52 7.34 8.38 Total Cash Composite 2,089,635 0.3 Cash and Equivalents Account (No fee)80,351 0.0 Private Markets Cash 2,009,284 0.3 Page 10 Comparative Performance - IRR MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date ValStone Opportunity Fund V 0.00 0.00 0.00 4.16 4.16 6.56 N/A N/A N/A 7.12 08/27/2014 Alidade Capital Fund IV 0.00 0.00 0.00 2.51 2.51 N/A N/A N/A N/A 2.94 04/20/2017 Walton Street Real Estate -0.32 -0.33 -0.33 6.37 6.37 N/A N/A N/A N/A 11.58 05/24/2017 AEW Real Estate 0.00 0.00 0.00 -0.80 -0.80 N/A N/A N/A N/A -10.17 09/28/2017 Churchill Senior Loan Fund 0.00 0.00 0.00 4.46 4.46 N/A N/A N/A N/A 5.86 12/07/2017 Comparative Performance - IRR Alternative Investments As of December 31, 2018 Page 11 Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client’s custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. 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Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. Page 12 Y i +. i '\c- a. ` �. taxi. �,