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HomeMy WebLinkAboutReports - 2019.03.21 - 31326<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2904" DocumentTypeId="2" EffectiveDate="02/28/2019" Interval="1" /> Investment Performance Review Period Ending February 28, 2019 March 21, 2019 Preliminary Oakland County ERS VEBA 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 (0.2%) Total Real Assets (8.7%) Total Fixed Income Composite (34.6%) Total Long/Short Equity Composite (4.2%) Total International Equity (14.7%) Total Domestic Equity (37.7%) 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 1,271,907,853 100.0 N/A N/A 100.0 --- Total Domestic Equity 479,276,205 37.7 10.0 50.0 37.5 -352,085,419 156,677,722 -2,310,760 Total International Equity 186,988,930 14.7 5.0 20.0 12.5 -123,393,537 67,392,641 -28,000,448 Total Long/Short Equity Composite 53,086,919 4.2 0.0 7.5 5.0 -53,086,919 42,306,170 10,508,474 Total Fixed Income Composite 439,800,187 34.6 10.0 55.0 35.0 -312,609,402 259,749,132 5,367,562 Total Real Assets 110,585,042 8.7 0.0 15.0 10.0 -110,585,042 80,201,136 16,605,743 Total Cash Composite 2,170,571 0.2 0.0 5.0 0.0 -2,170,571 61,424,822 -2,170,571 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of February 28, 2019 Page 2 Executive Summary Policy Target In Policy 0.0%8.0%16.0%24.0%32.0%40.0%48.0%56.0%60.0% Total Cash Composite (0.2%) Total Real Assets (8.7%) Total Fixed Income Composite (34.6%) Total Long/Short Equity Composite (4.2%) Total International Equity (14.7%) Total Small Cap Equity Composite (8.4%) Total Mid Cap Equity Composite (8.3%) Total Large Cap Equity Composite (21.0%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Target Rebal. ($000) Total Fund Composite 1,271,907,853 100.0 100.0 - Total Large Cap Equity Composite 267,548,710 21.0 25.0 50,428,254 Total Mid Cap Equity Composite 105,140,529 8.3 6.3 -25,646,288 Total Small Cap Equity Composite 106,586,966 8.4 6.3 -27,092,725 Total International Equity 186,988,930 14.7 12.5 -28,000,448 Total Long/Short Equity Composite 53,086,919 4.2 5.0 10,508,474 Total Fixed Income Composite 439,800,187 34.6 35.0 5,367,562 Total Real Assets 110,585,042 8.7 10.0 16,605,743 Total Cash Composite 2,170,571 0.2 0.0 -2,170,571 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of February 28, 2019 Page 3 January 31, 2019 : $1,248,175,353 February 28, 2019 : $1,271,907,853 Allocation Market Value Allocation SSgA S&P 500 68,975,064 5.5¢ SSgA S&P 500 Equal Weighted Index 61,894,150 5.0¢ T. Rowe Price 128,276,010 10.3¢ Seizert Capital Partners 23,580,951 1.9¢ Wedge Capital Partners 24,965,338 2.0¢ TimesSquare 27,614,157 2.2¢ Munder Capital 25,690,086 2.1¢ Lee Munder (LMCG)45,587,311 3.7¢ Loomis Small Cap 55,338,712 4.4¢ Lazard 78,041,633 6.3¢ Pictet 70,539,914 5.7¢ Berkeley Street 32,828,433 2.6¢ ABS Global 53,086,919 4.3¢ CS McKee 230,708,551 18.5¢ Loomis Fixed Income 104,333,566 8.4¢ Franklin Templeton 83,679,762 6.7¢ Churchill Senior Loan Fund 21,290,319 1.7¢ Morgan Stanley 61,889,515 5.0¢ Prudential PRISA II 25,775,399 2.1¢ Alidade Capital Fund IV 2,033,119 0.2¢ Walton Street Real Estate 6,561,626 0.5¢ AEW Real Estate 2,627,633 0.2¢ Macquarie II U.S.5,672,910 0.5¢ Macquarie Fund III Europe 2,841,212 0.2¢ ValStone Opportunity Fund V 3,183,627 0.3¢ Cash and Equivalents Account 224,493 0.0¢ Private Markets Cash 934,943 0.1¢ Allocation Market Value Allocation SSgA S&P 500 71,186,011 5.6¢ SSgA S&P 500 Equal Weighted Index 64,148,579 5.0¢ T. Rowe Price 132,214,119 10.4¢ Seizert Capital Partners 23,452,412 1.8¢ Wedge Capital Partners 25,487,745 2.0¢ TimesSquare 29,182,597 2.3¢ Munder Capital 27,017,776 2.1¢ Lee Munder (LMCG)47,949,397 3.8¢ Loomis Small Cap 58,637,569 4.6¢ Lazard 79,888,962 6.3¢ Pictet 73,499,710 5.8¢ Berkeley Street 33,600,258 2.6¢ ABS Global 53,086,919 4.2¢ CS McKee 229,881,071 18.1¢ Loomis Fixed Income 104,521,092 8.2¢ Franklin Templeton 84,629,473 6.7¢ Churchill Senior Loan Fund 20,768,552 1.6¢ Morgan Stanley 61,889,515 4.9¢ Prudential PRISA II 25,775,399 2.0¢ Alidade Capital Fund IV 2,033,119 0.2¢ Walton Street Real Estate 6,561,626 0.5¢ AEW Real Estate 2,627,633 0.2¢ Macquarie II U.S.5,672,910 0.4¢ Macquarie Fund III Europe 2,841,212 0.2¢ ValStone Opportunity Fund V 3,183,627 0.3¢ Cash and Equivalents Account 224,963 0.0¢ Private Markets Cash 1,945,608 0.2¢ 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 1,192,862,693 -863,031 -8,000,000 -122,783 -983 2,509,440 83,796,456 1,271,907,853 Total Equity Composite 641,703,147 -1,000,000 49,822 --122,783 -783 506,267 78,216,384 719,352,053 Total Domestic Equity 422,827,601 -1,000,000 ---6,805 -92 343,526 57,111,976 479,276,205 Total Large Cap Equity Composite 238,135,205 ----6,805 --31,892 29,452,202 267,548,710 SSgA S&P 500 63,857,236 ----1,133 --7,329,908 71,186,011 SSgA S&P 500 Equal Weighted Index 56,319,154 ----5,673 --7,835,097 64,148,579 T. Rowe Price 117,958,815 ------31,892 14,287,196 132,214,119 Total Mid Cap Equity Composite 93,136,570 -1,000,000 ----250,751 12,753,208 105,140,529 Seizert Capital Partners 21,846,995 -1,000,000 ----72,664 2,532,753 23,452,412 Wedge Capital Partners 22,696,372 -----83,294 2,708,078 25,487,745 TimesSquare 25,082,973 -----60,184 4,039,440 29,182,597 Munder Capital 23,510,230 -----34,609 3,472,937 27,017,776 Total Small Cap Equity Composite 91,555,825 -----92 124,667 14,906,567 106,586,966 Lee Munder (LMCG)41,194,247 -----85,224 6,669,926 47,949,397 Loomis Small Cap 50,361,578 -----92 39,443 8,236,641 58,637,569 Total International Equity 167,697,419 -49,822 --115,977 -691 162,741 19,195,616 186,988,930 Lazard 72,598,240 -----691 75,928 7,215,484 79,888,962 Pictet 65,459,667 ----66,156 -86,813 8,019,386 73,499,710 Berkeley Street 29,639,512 -49,822 --49,822 --3,960,746 33,600,258 Total Long/Short Equity Composite 51,178,127 ------1,908,792 53,086,919 ABS Global 51,178,127 ------1,908,792 53,086,919 Total Fixed Income Composite 439,743,731 -7,521,767 ----200 2,002,389 5,576,034 439,800,187 Total Domestic Fixed Income 336,595,284 -7,000,000 ----200 2,002,389 2,804,690 334,402,163 CS McKee 233,964,818 -7,000,000 ----1,366,200 1,550,053 229,881,071 Loomis Fixed Income 102,630,466 -----200 636,189 1,254,637 104,521,092 Total Global Fixed 81,858,128 ------2,771,344 84,629,473 Franklin Templeton 81,858,128 ------2,771,344 84,629,473 Private Fixed Income 21,290,319 -521,767 ------20,768,552 Churchill Senior Loan Fund 21,290,319 -521,767 ------20,768,552 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 Assets 110,863,170 -278,128 ------110,585,042 Total Real Estate (Composite)99,052,292 -165,000 ------98,887,292 Morgan Stanley 61,889,515 -------61,889,515 Prudential PRISA II 25,775,399 -------25,775,399 Alidade Capital Fund IV 2,198,119 -165,000 ------2,033,119 Walton Street Real Estate 6,561,626 -------6,561,626 AEW Real Estate 1,313,816 -------1,313,816 Private Investments 11,810,877 -113,128 ------11,697,750 Macquarie II U.S.5,672,910 -------5,672,910 Macquarie Fund III Europe 2,954,340 -113,128 ------2,841,212 ValStone Opportunity Fund V 3,183,627 -------3,183,627 Total Cash Composite 552,646 8,799,895 813,209 -8,000,000 --784 4,037 2,170,571 Cash and Equivalents Account -101,118 7,512,077 813,209 -8,000,000 --784 11 224,963 Private Markets Cash 653,764 1,287,818 -----4,026 1,945,608 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 1,271,907,853 100.0 2.03 7.25 -0.94 7.25 2.61 9.46 6.10 8.27 11.24 5.31 06/01/1998 Total Fund Policy Index 1.75 6.95 -0.53 6.95 3.44 9.46 6.31 8.05 11.47 5.79 Total Equity Composite 719,352,053 56.6 3.44 12.27 -3.58 12.27 1.06 13.25 7.48 10.43 14.82 5.12 04/01/1998 Total Equity Index 3.29 12.30 -3.55 12.30 2.03 14.05 8.86 11.81 15.87 6.44 Total Fixed Income Composite 439,800,187 34.6 0.30 1.73 2.84 1.73 3.60 3.41 2.69 2.87 5.02 5.13 04/01/1998 Total Fixed Income Index 0.08 1.70 2.46 1.70 2.76 1.79 2.17 1.93 3.59 4.71 Total Real Assets 110,585,042 8.7 0.00 0.00 1.95 0.00 9.09 9.38 10.76 11.69 8.17 7.17 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 0.2 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 479,276,205 37.7 3.97 13.59 -3.89 13.59 5.02 N/A N/A N/A N/A N/A 10/01/1986 Total Large Cap Equity Composite 267,548,710 21.0 3.24 12.35 -3.03 12.35 4.97 15.25 10.71 13.13 16.19 9.94 07/01/2008 SSgA S&P 500 (1.5 bps)71,186,011 5.6 3.21 11.48 -3.59 11.48 4.65 15.26 10.67 13.05 N/A 13.17 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)64,148,579 5.0 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)132,214,119 10.4 3.07 12.08 -3.15 12.08 5.07 16.37 11.41 13.68 N/A 13.62 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 105,140,529 8.3 4.21 13.96 -4.29 13.96 1.63 14.21 7.57 11.13 16.56 9.23 07/01/2008 Seizert Capital Partners (60 bps)23,452,412 1.8 3.70 11.93 -4.30 11.93 -1.83 13.08 4.98 N/A N/A 7.11 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)25,487,745 2.0 2.09 12.30 -7.53 12.30 -1.93 12.33 7.71 11.79 18.01 7.80 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)29,182,597 2.3 5.68 16.34 -1.12 16.34 9.77 17.39 9.68 13.39 N/A 14.53 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 Munder Capital (75 bps)27,017,776 2.1 5.17 14.92 -4.43 14.92 0.22 13.65 7.72 11.09 N/A 13.39 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 106,586,966 8.4 5.61 16.42 -5.62 16.42 8.81 16.27 7.42 10.80 16.39 10.12 07/01/2008 Lee Munder (LMCG) (70 bps)47,949,397 3.8 5.18 16.40 -5.64 16.40 2.93 12.99 7.87 10.62 16.22 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)58,637,569 4.6 5.96 16.43 -5.61 16.43 13.23 21.89 9.86 N/A N/A 15.55 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 186,988,930 14.7 3.09 11.54 -2.45 11.54 -6.50 10.72 3.92 6.40 11.39 3.67 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)79,888,962 6.3 2.37 10.04 -1.06 10.04 -3.73 10.49 4.53 7.51 12.21 5.61 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)73,499,710 5.8 4.24 12.39 -6.83 12.39 -9.48 9.00 2.58 6.24 11.31 1.11 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)33,600,258 2.6 2.35 13.36 4.83 13.36 -6.19 16.90 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 53,086,919 4.2 0.00 3.73 -4.60 3.73 -4.18 N/A N/A N/A N/A N/A 10/01/2010 ABS Global (100 bps)53,086,919 4.2 0.00 3.73 -4.60 3.73 -4.18 4.35 2.42 4.93 N/A 4.68 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 334,402,163 26.3 0.11 1.43 2.42 1.43 3.24 N/A N/A N/A N/A N/A 07/01/2008 CS McKee (35 bps)229,881,071 18.1 0.07 1.25 2.59 1.25 3.36 2.00 2.63 2.39 N/A 3.44 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)104,521,092 8.2 0.18 1.84 2.04 1.84 2.96 4.67 3.15 3.84 N/A 5.26 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 84,629,473 6.7 1.13 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)84,629,473 6.7 1.13 3.39 4.85 3.39 4.38 5.75 2.23 2.70 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 (Composite)98,887,292 7.8 0.00 0.00 2.04 0.00 9.26 N/A N/A N/A N/A N/A 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)61,889,515 4.9 0.00 0.00 2.23 0.00 9.05 9.71 12.06 12.70 7.76 6.48 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)25,775,399 2.0 0.00 0.00 1.64 0.00 10.29 9.57 11.99 12.76 N/A 12.46 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 Total Cash Composite 2,170,571 0.2 Cash and Equivalents Account (No fee)224,963 0.0 Private Markets Cash 1,945,608 0.2 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 7.58 N/A N/A N/A 7.55 08/27/2014 Macquarie II U.S.0.00 0.00 1.59 0.00 6.57 5.90 4.13 7.23 8.05 7.89 10/09/2008 Macquarie Fund III Europe 0.00 0.00 -1.65 0.00 5.03 16.17 6.03 9.49 8.08 7.22 10/17/2008 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 12.79 05/25/2017 AEW Real Estate 0.00 0.00 0.00 0.00 -0.74 N/A N/A N/A N/A -8.48 09/26/2017 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 Private 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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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. �,