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HomeMy WebLinkAboutReports - 2019.02.28 - 31240<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2903" DocumentTypeId="2" EffectiveDate="02/28/2019" Interval="1" /> Investment Performance Review Period Ending February 28, 2019 March 21, 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 3.21 1.42 11.48 4.68 15.28 10.66 Russell Midcap Index 4.29 4.07 15.54 5.61 14.45 8.54 Russell 2000 Index 5.19 3.11 17.02 5.54 16.65 7.34 Russell 1000 Growth Indx 3.58 3.18 12.89 6.62 17.99 12.62 Russell 1000 Value Index 3.19 0.54 11.23 3.15 12.79 8.08 Russell 3000 Index 3.52 1.94 12.40 5.04 15.52 10.14 MSCI EAFE NR 2.55 3.98 9.29 (6.04)9.32 2.07 MSCI EM NR 0.22 6.11 9.00 (9.89)15.04 4.13 Fixed Income Month 3 M YTD 1 Year Mod. Adj. Duration Yield to Worst Currencies 02/28/19 12/31/18 12/31/17 U.S. Aggregate (0.06)2.86 1.00 3.17 5.91 3.21 Euro Spot 1.14 1.15 1.20 U.S. Corporate Investment Grade 0.22 4.08 2.57 2.63 7.25 3.91 British Pound Spot 1.33 1.28 1.35 U.S. Corporate High Yield 1.66 3.98 6.26 4.31 3.52 6.54 Japanese Yen Spot 111.39 109.69 112.69 Global Aggregate (0.58)2.98 0.94 (0.57)6.99 1.96 Swiss Franc Spot 1.00 0.98 0.97 Key Rates 02/28/19 12/31/18 12/31/17 12/31/16 12/31/15 Commodities 02/28/19 12/31/18 12/31/17 3 Month 2.43 2.35 1.38 0.50 0.16 Oil 57.22 46.08 56.79 US 2 Year 2.51 2.49 1.88 1.19 1.05 Gasoline 2.42 2.26 2.49 US 10 Year 2.72 2.68 2.41 2.44 2.27 Natural Gas 2.81 2.68 2.69 US 30 Year 3.08 3.01 2.74 3.07 3.02 Gold 1,316.10 1,287.70 1,187.30 ICE LIBOR USD 3M 2.63 2.81 1.69 1.00 0.61 Silver 15.63 15.63 16.50 Euribor 3 Month ACT/360 (0.31)(0.31)(0.33)(0.32)(0.13)Copper 294.80 263.70 336.40 Bankrate 30Y Mortgage Rates Na 4.40 4.51 3.85 4.06 3.90 Corn 370.75 383.00 399.25 Prime 5.50 5.50 4.50 3.75 3.50 BBG Commodity TR Idx 170.12 159.72 179.96 -12.9 -12.3 -9.1 -4.8 Levels (%)Levels -11.0 -9.3 YTD 2018 Index Returns (%)Levels S 15.2 17.0 18.7 S M 13.8 15.5 18.0 M February 28, 2019 Index Returns (%) L 11.2 12.0 12.9 L -8.3 -4.8 -1.5 18.6 14.3 14.0 12.0 11.5 11.5 11.3 11.2 9.0 7.7 7.6 6.1 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 YTD Sector Returns 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 2018 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 (0.4%) Total Real Asset (9.7%) Total Fixed Income Composite (35.9%) Total Long/Short Equity Composite (5.8%) Total International Equity (13.9%) Total Domestic Equity (34.4%) 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 740,417,587 100.0 N/A N/A 100.0 --- Total Domestic Equity 254,731,080 34.4 10.0 50.0 37.5 -180,689,321 115,477,714 22,925,515 Total International Equity 102,704,993 13.9 5.0 20.0 12.5 -65,684,114 45,378,524 -10,152,795 Total Long/Short Equity Composite 42,615,329 5.8 0.0 7.5 5.0 -42,615,329 12,915,990 -5,594,449 Total Fixed Income Composite 265,817,522 35.9 10.0 55.0 35.0 -191,775,763 141,412,151 -6,671,366 Total Real Asset 71,624,268 9.7 0.0 15.0 10.0 -71,624,268 39,438,370 2,417,491 Total Cash Composite 2,924,396 0.4 0.0 5.0 0.0 -2,924,396 34,096,484 -2,924,396 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of February 28, 2019 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 (0.4%) Total Real Asset (9.7%) Total Fixed Income Composite (35.9%) Total Long/Short Equity Composite (5.8%) Total International Equity (13.9%) Total Small Cap Equity Composite (6.5%) Total Mid Cap Equity Composite (7.6%) Total Large Cap Equity Composite (20.3%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Target Rebal. ($000) Total Fund Composite 740,417,587 100.0 100.0 - Total Large Cap Equity Composite 150,595,418 20.3 25.0 34,508,979 Total Mid Cap Equity Composite 56,085,728 7.6 6.3 -9,809,629 Total Small Cap Equity Composite 48,049,934 6.5 6.3 -1,773,835 Total International Equity 102,704,993 13.9 12.5 -10,152,795 Total Long/Short Equity Composite 42,615,329 5.8 5.0 -5,594,449 Total Fixed Income Composite 265,817,522 35.9 35.0 -6,671,366 Total Real Asset 71,624,268 9.7 10.0 2,417,491 Total Cash Composite 2,924,396 0.4 0.0 -2,924,396 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of February 28, 2019 Page 3 January 31, 2019 : $733,203,624 February 28, 2019 : $740,417,587 Allocation Market Value Allocation SSgA S&P 500 33,714,269 4.6¢ SSgA S&P 500 Equal Weighted Index 33,327,619 4.5¢ T. Rowe Price 78,837,066 10.8¢ Seizert Capital Partners 15,197,959 2.1¢ Wedge Capital Partners 13,674,174 1.9¢ TimesSquare 12,207,281 1.7¢ Munder Capital 12,804,254 1.7¢ Lee Munder (LMCG)23,928,236 3.3¢ Loomis Small Cap 28,215,966 3.8¢ Lazard 36,136,094 4.9¢ Pictet 44,806,725 6.1¢ Berkeley Street 18,366,478 2.5¢ ABS Global 42,615,329 5.8¢ CS McKee 129,940,814 17.7¢ Loomis Fixed Income 78,970,520 10.8¢ Franklin Templeton 43,689,672 6.0¢ Churchill Senior Loan Fund 12,774,191 1.7¢ Morgan Stanley 42,875,404 5.8¢ JPM Euro Property 150,964 0.0¢ Prudential PRISA II 18,492,320 2.5¢ Alidade Capital Fund IV 3,388,532 0.5¢ Walton Street Real Estate 3,280,813 0.4¢ AEW Real Estate 1,313,816 0.2¢ ValStone Opportunity Fund V 2,122,418 0.3¢ Cash and Equivalents Account 80,409 0.0¢ Private Markets Cash 2,292,300 0.3¢ Allocation Market Value Allocation SSgA S&P 500 34,797,923 4.7¢ SSgA S&P 500 Equal Weighted Index 34,541,543 4.7¢ T. Rowe Price 81,255,952 11.0¢ Seizert Capital Partners 15,761,006 2.1¢ Wedge Capital Partners 13,959,719 1.9¢ TimesSquare 12,900,726 1.7¢ Munder Capital 13,464,277 1.8¢ Lee Munder (LMCG)25,166,970 3.4¢ Loomis Small Cap 22,882,964 3.1¢ Lazard 36,973,969 5.0¢ Pictet 46,685,855 6.3¢ Berkeley Street 19,045,169 2.6¢ ABS Global 42,615,329 5.8¢ CS McKee 130,055,214 17.6¢ Loomis Fixed Income 79,123,337 10.7¢ Franklin Templeton 44,177,840 6.0¢ Churchill Senior Loan Fund 12,461,131 1.7¢ Morgan Stanley 42,875,404 5.8¢ JPM Euro Property 150,964 0.0¢ Prudential PRISA II 18,492,320 2.5¢ Alidade Capital Fund IV 3,388,532 0.5¢ Walton Street Real Estate 3,280,813 0.4¢ AEW Real Estate 1,313,816 0.2¢ ValStone Opportunity Fund V 2,122,418 0.3¢ Cash and Equivalents Account 80,553 0.0¢ Private Markets Cash 2,843,843 0.4¢ Asset Allocation By Manager Total Fund Composite As of February 28, 2019 Page 4 Financial Reconciliation Month to Date Market Value 01/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 02/28/2019 Total Fund Composite 706,164,442 -272,202 -14,000,000 -75,705 -2,943 1,863,808 46,195,783 740,417,587 Total Equity Composite 363,744,922 -7,000,000 28,240 --75,705 -2,156 633,347 42,722,754 400,051,402 Total Domestic Equity 230,654,389 -7,000,000 ---3,578 -972 549,617 30,531,624 254,731,080 Total Large Cap Equity Composite 134,037,634 ----3,578 -75 347,635 16,213,802 150,595,418 SSgA S&P 500 31,216,390 ----523 --3,582,057 34,797,923 SSgA S&P 500 Equal Weighted Index 30,325,699 ----3,054 --4,218,899 34,541,543 T. Rowe Price 72,495,546 -----75 347,635 8,412,846 81,255,952 Total Mid Cap Equity Composite 49,319,089 -----443 137,239 6,629,843 56,085,728 Seizert Capital Partners 14,081,495 -----183 47,488 1,632,206 15,761,006 Wedge Capital Partners 12,432,194 -----151 45,797 1,481,878 13,959,719 TimesSquare 11,088,467 -----68 26,643 1,785,684 12,900,726 Munder Capital 11,716,933 -----42 17,310 1,730,076 13,464,277 Total Small Cap Equity Composite 47,297,666 -7,000,000 ----454 64,744 7,687,978 48,049,934 Lee Munder (LMCG)21,624,390 -----143 44,950 3,497,773 25,166,970 Loomis Small Cap 25,673,276 -7,000,000 ----312 19,793 4,190,205 22,882,964 Total International Equity 92,007,481 -28,240 --72,127 -1,184 83,730 10,658,855 102,704,993 Lazard 33,626,699 -----1,184 28,586 3,319,868 36,973,969 Pictet 41,580,643 ----43,888 -55,143 5,093,956 46,685,855 Berkeley Street 16,800,139 -28,240 --28,240 --2,245,030 19,045,169 Total Long/Short Equity Composite 41,083,053 ------1,532,276 42,615,329 ABS Global 41,083,053 ------1,532,276 42,615,329 Total Fixed Income Composite 268,430,617 -7,313,060 ----777 1,230,298 3,470,444 265,817,522 Total Domestic Fixed Income 212,925,268 -7,000,000 ----777 1,230,298 2,023,761 209,178,551 CS McKee 135,264,868 -7,000,000 ----312 779,997 1,010,661 130,055,214 Loomis Fixed Income 77,660,400 -----465 450,301 1,013,100 79,123,337 Total Global Fixed 42,731,158 ------1,446,683 44,177,840 Franklin Templeton 42,731,158 ------1,446,683 44,177,840 Private Fixed Income 12,774,191 -313,060 ------12,461,131 Churchill Senior Loan Fund 12,774,191 -313,060 ------12,461,131 Financial Reconciliation Total Fund Quarter To Date Ending February 28, 2019 Page 5 Financial Reconciliation Total Fund Quarter To Date Ending February 28, 2019 Market Value 01/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 02/28/2019 Total Real Asset 71,899,268 -275,000 ------71,624,268 Total Real Estate 69,776,850 -275,000 ------69,501,850 Morgan Stanley 42,875,404 -------42,875,404 JPM Euro Property 150,964 -------150,964 Prudential PRISA II 18,492,320 -------18,492,320 Alidade Capital Fund IV 3,663,532 -275,000 ------3,388,532 Walton Street Real Estate 3,280,813 -------3,280,813 AEW Real Estate 1,313,816 -------1,313,816 Private Investments 2,122,418 -------2,122,418 ValStone Opportunity Fund V 2,122,418 -------2,122,418 Total Cash Composite 2,089,635 14,588,060 243,962 -14,000,000 --10 163 2,585 2,924,396 Cash and Equivalents Account 80,351 13,756,038 243,962 -14,000,000 --10 163 49 80,553 Private Markets Cash 2,009,284 832,022 -----2,536 2,843,843 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 740,417,587 100.0 1.91 6.83 -0.89 6.83 2.47 9.40 6.19 7.74 10.73 8.33 10/01/1986 Total Fund Policy Index 1.75 6.95 -0.53 6.95 3.44 9.36 6.24 7.97 11.44 8.78 Total Equity Composite 400,051,402 54.0 3.37 11.92 -3.71 11.92 0.52 12.90 7.25 10.18 14.59 9.54 10/01/1986 Total Equity Index 3.29 12.30 -3.55 12.30 2.03 14.02 8.84 11.80 15.86 9.92 Total Fixed Income Composite 265,817,522 35.9 0.28 1.76 2.81 1.76 3.61 3.41 2.84 2.91 5.14 6.32 10/01/1986 Total Fixed Income Index 0.08 1.70 2.46 1.70 2.76 1.86 2.21 1.96 3.61 6.10 Total Real Asset 71,624,268 9.7 0.00 0.00 1.94 0.00 8.87 9.21 11.41 10.77 5.76 4.69 07/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 1.76 0.00 8.35 8.24 10.41 10.99 7.00 5.33 Total Cash Composite 2,924,396 0.4 Asset Allocation & Performance Total Fund Composite As of February 28, 2019 Page 7 Asset Allocation & Performance Total Fund Composite As of February 28, 2019 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Domestic Equity 254,731,080 34.4 3.91 13.48 -3.90 13.48 4.83 N/A N/A N/A N/A N/A 10/01/1986 Total Large Cap Equity Composite 150,595,418 20.3 3.23 12.36 -3.02 12.36 4.96 15.38 10.82 13.23 16.38 10.10 07/01/2008 SSgA S&P 500 (1.5 bps)34,797,923 4.7 3.21 11.47 -3.58 11.47 4.70 15.32 10.73 13.14 N/A 13.24 10/01/2009 S&P 500 Index 3.21 11.48 -3.59 11.48 4.68 15.28 10.67 13.06 16.67 13.17 SSgA S&P 500 Equal Weighted Index (4 bps)34,541,543 4.7 3.64 13.91 -2.14 13.91 5.14 N/A N/A N/A N/A 0.52 02/01/2018 S&P 500 Equal Weighted 3.68 13.90 -1.94 13.90 5.28 14.58 9.47 12.92 18.83 0.65 T. Rowe Price (25 bps)81,255,952 11.0 3.07 12.08 -3.14 12.08 5.16 16.41 11.44 13.75 N/A 13.69 10/01/2009 S&P 500 Index 3.21 11.48 -3.59 11.48 4.68 15.28 10.67 13.06 16.67 13.17 Total Mid Cap Equity Composite 56,085,728 7.6 4.09 13.72 -4.47 13.72 1.09 13.86 7.38 11.03 16.44 9.22 07/01/2008 Seizert Capital Partners (60 bps)15,761,006 2.1 3.71 11.93 -4.27 11.93 -1.80 13.00 4.91 N/A N/A 7.06 10/01/2013 Russell Midcap Value Index 3.18 13.81 -3.21 13.81 2.63 12.58 7.44 11.58 17.31 9.19 Wedge Capital Partners (75 bps)13,959,719 1.9 2.09 12.29 -7.52 12.29 -1.95 12.22 7.43 11.66 17.85 7.72 05/01/2007 Russell Midcap Value Index 3.18 13.81 -3.21 13.81 2.63 12.58 7.44 11.58 17.31 6.78 TimesSquare (80 bps)12,900,726 1.7 5.68 16.34 -1.18 16.34 9.69 17.32 9.67 13.37 N/A 14.52 09/01/2009 Russell Midcap Growth Index 5.86 18.03 -0.85 18.03 9.85 17.20 10.18 13.11 18.52 14.83 Munder (75 bps)13,464,277 1.8 5.16 14.91 -4.47 14.91 0.22 13.51 7.62 11.02 N/A 13.53 09/01/2009 Russell Midcap Growth Index 5.86 18.03 -0.85 18.03 9.85 17.20 10.18 13.11 18.52 14.83 Total Small Cap Equity Composite 48,049,934 6.5 5.63 16.45 -5.66 16.45 8.82 16.10 7.27 10.72 16.27 10.11 07/01/2008 Lee Munder (70 bps)25,166,970 3.4 5.18 16.38 -5.63 16.38 2.95 12.99 7.86 10.68 16.23 9.23 09/01/2005 Russell 2000 Value Index 3.89 15.25 -6.27 15.25 4.42 14.95 6.48 10.56 15.43 6.92 Loomis Small Cap (90 bps)22,882,964 3.1 6.02 16.52 -5.68 16.52 13.21 21.82 9.94 N/A N/A 15.62 09/01/2012 Russell 2000 Growth Index 6.46 18.75 -6.96 18.75 6.70 18.27 8.16 12.33 17.69 13.38 Page 8 Asset Allocation & Performance Total Fund Composite As of February 28, 2019 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total International Equity 102,704,993 13.9 3.44 11.68 -2.84 11.68 -7.03 10.59 3.84 6.36 11.37 3.66 07/01/2008 Total International Equity Index 1.97 9.69 -2.82 9.69 -6.00 11.25 2.97 5.06 9.42 2.25 Lazard (75 bps)36,973,969 5.0 2.32 9.96 -1.21 9.96 -4.17 10.32 4.45 7.40 12.14 5.56 09/01/2006 MSCI AC World ex USA 1.97 9.69 -2.82 9.69 -6.00 11.25 2.97 4.91 10.13 3.56 Pictet (65 bps)46,685,855 6.3 4.24 12.39 -6.83 12.39 -9.48 9.01 2.59 6.25 11.32 1.12 01/01/2008 MSCI EAFE Index 2.56 9.32 -4.35 9.32 -5.57 9.85 2.54 5.95 10.07 1.67 Berkeley Street (95 bps)19,045,169 2.6 3.70 13.36 4.83 13.36 -6.19 16.89 6.09 N/A N/A 4.88 11/01/2012 MSCI Emerging Markets Index 0.23 9.03 0.96 9.03 -9.54 15.46 4.52 2.44 10.70 3.61 Total Long/Short Equity Composite 42,615,329 5.8 0.00 3.73 -4.60 3.73 -4.18 4.40 2.33 3.89 N/A 3.80 10/01/2010 ABS Global (100 bps)42,615,329 5.8 0.00 3.73 -4.60 3.73 -4.18 4.40 2.45 4.96 N/A 4.70 10/01/2010 HFRI FOF: Strategic Index 0.97 4.10 -2.56 4.10 -3.98 4.83 1.78 3.12 3.82 2.70 Total Domestic Fixed Income 209,178,551 28.3 0.13 1.53 2.46 1.53 3.28 N/A N/A N/A N/A N/A 07/01/2008 CS McKee (35 bps)130,055,214 17.6 0.09 1.33 2.68 1.33 3.41 2.01 2.69 2.44 N/A 3.47 02/01/2010 Blmbg. Barc. U.S. Aggregate Index -0.06 1.00 2.66 1.00 3.17 1.69 2.32 2.12 3.71 3.12 Loomis Fixed Income (30 bps)79,123,337 10.7 0.19 1.88 2.08 1.88 3.05 4.60 3.17 3.88 N/A 5.30 04/01/2010 Blmbg. Barc. U.S. Aggregate Index -0.06 1.00 2.66 1.00 3.17 1.69 2.32 2.12 3.71 3.15 Total Global Fixed 44,177,840 6.0 1.12 3.39 4.85 3.39 4.38 N/A N/A N/A N/A N/A 04/01/2010 Franklin Templeton (60 bps)44,177,840 6.0 1.12 3.39 4.85 3.39 4.38 5.76 2.23 2.71 N/A 3.23 04/01/2010 JPM Global Government Bond Index -0.88 0.43 2.44 0.43 -0.84 1.21 0.62 0.35 2.52 1.92 Page 9 Asset Allocation & Performance Total Fund Composite As of February 28, 2019 Allocation Market Value $ % Performance(%) MTH QTD FYTD YTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Real Estate 69,501,850 9.4 0.00 0.00 1.91 0.00 8.82 N/A N/A N/A N/A 9.16 09/01/2016 NCREIF Fund Index-ODCE (VW)0.00 0.00 1.76 0.00 8.35 8.24 10.41 10.99 7.00 8.11 Morgan Stanley (84 bps)42,875,404 5.8 0.00 0.00 2.23 0.00 9.05 9.63 12.02 12.66 7.73 6.45 01/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 1.76 0.00 8.35 8.24 10.41 10.99 7.00 5.24 Prudential PRISA II (85 bps)18,492,320 2.5 0.00 0.00 1.45 0.00 9.43 9.28 11.83 12.65 N/A 12.36 10/01/2011 NCREIF Property Index 0.00 0.00 1.37 0.00 6.72 7.21 9.33 9.74 7.49 9.59 JPM Euro Property 150,964 0.0 0.00 0.00 0.00 0.00 4.11 7.79 8.09 3.56 N/A 1.25 04/01/2009 NCREIF Property Index 0.00 0.00 1.37 0.00 6.72 7.21 9.33 9.74 7.49 8.38 Total Cash Composite 2,924,396 0.4 Cash and Equivalents Account (No fee)80,553 0.0 Private Markets Cash 2,843,843 0.4 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 2.82 0.00 7.08 7.57 N/A N/A N/A 7.55 08/27/2014 Alidade Capital Fund IV 0.00 0.00 0.00 0.00 2.48 N/A N/A N/A N/A 2.61 04/20/2017 Walton Street Real Estate 0.00 0.00 2.86 0.00 9.88 N/A N/A N/A N/A 12.77 05/24/2017 AEW Real Estate 0.00 0.00 0.00 0.00 -0.69 N/A N/A N/A N/A -8.42 09/28/2017 Churchill Senior Loan Fund 0.00 0.00 1.43 0.00 5.89 N/A N/A N/A N/A 6.34 12/07/2017 Comparative Performance - IRR Alternative Investments As of February 28, 2019 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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