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HomeMy WebLinkAboutReports - 2019.12.17 - 32662<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2904" DocumentTypeId="2" EffectiveDate="10/31/2019" Interval="1" /> Investment Performance Review Period Ending October 31, 2019 Oakland County ERS VEBA Plan Monthly Flash Report 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 (0.6%) Total Real Assets (8.8%) Total Fixed Income Composite (34.4%) Total Long/Short Equity Composite (4.2%) Total International Equity (14.9%) Total Domestic Equity (37.1%) 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 1,326,761,523 100.0 N/A N/A 100.0 --- Total Domestic Equity 491,928,162 37.1 10.0 50.0 37.5 -359,252,010 171,452,600 5,607,409 Total International Equity 197,634,567 14.9 5.0 20.0 12.5 -131,296,491 67,717,737 -31,789,377 Total Long/Short Equity Composite 55,833,247 4.2 0.0 7.5 5.0 -55,833,247 43,673,868 10,504,830 Total Fixed Income Composite 456,927,356 34.4 10.0 55.0 35.0 -324,251,203 272,791,482 7,439,177 Total Real Assets 116,165,695 8.8 0.0 15.0 10.0 -116,165,695 82,848,534 16,510,458 Total Cash Composite 8,272,497 0.6 0.0 5.0 0.0 -8,272,497 58,065,579 -8,272,497 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of October 31, 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 (0.6%) Total Real Assets (8.8%) Total Fixed Income Composite (34.4%) Total Long/Short Equity Composite (4.2%) Total International Equity (14.9%) Total Small Cap Equity Composite (8.0%) Total Mid Cap Equity Composite (8.2%) Total Large Cap Equity Composite (20.9%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Target Rebal. ($000) Total Fund Composite 1,326,761,523 100.0 100.0 - Total Large Cap Equity Composite 277,717,539 20.9 20.0 -12,365,234 Total Mid Cap Equity Composite 108,485,221 8.2 7.5 -8,978,107 Total Small Cap Equity Composite 105,725,402 8.0 7.5 -6,218,287 Total International Equity 197,634,567 14.9 15.0 1,379,661 Total Long/Short Equity Composite 55,833,247 4.2 5.0 10,504,830 Total Fixed Income Composite 456,927,356 34.4 35.0 7,439,177 Total Real Assets 116,165,695 8.8 10.0 16,510,458 Total Cash Composite 8,272,497 0.6 0.0 -8,272,497 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of October 31, 2019 Page 3 September 30, 2019 : $1,310,646,371 October 31, 2019 : $1,326,761,523 Allocation Market Value Allocation SSgA S&P 500 73,895,185 5.6¢ SSgA S&P 500 Equal Weighted Index 67,995,904 5.2¢ T. Rowe Price 133,258,500 10.2¢ Wedge Capital Partners 26,320,097 2.0¢ TimesSquare 29,097,632 2.2¢ Great Lakes SmidCap 25,769,123 2.0¢ Reinhart Partners 26,057,221 2.0¢ Lee Munder (LMCG)47,794,976 3.6¢ Loomis Small Cap 55,427,895 4.2¢ Lazard 81,257,088 6.2¢ Pictet 76,016,420 5.8¢ Berkeley Street 34,111,019 2.6¢ ABS Global 55,833,247 4.3¢ CS McKee 246,503,355 18.8¢ Loomis Fixed Income 111,780,023 8.5¢ Franklin Templeton 76,620,015 5.8¢ Churchill Senior Loan Fund 20,882,197 1.6¢ Morgan Stanley 64,716,623 4.9¢ Prudential PRISA II 26,910,501 2.1¢ Alidade Capital Fund IV 2,073,230 0.2¢ Walton Street Real Estate 6,913,585 0.5¢ AEW Real Estate 5,111,284 0.4¢ Dune Real Estate IV 875,219 0.1¢ Macquarie II U.S.3,399,039 0.3¢ Macquarie Fund III Europe 3,976,395 0.3¢ ValStone Opportunity Fund V 3,350,698 0.3¢ Cash and Equivalents Account 115,403 0.0¢ Private Markets Cash 4,584,498 0.3¢ Allocation Market Value Allocation SSgA S&P 500 72,496,148 5.5¢ SSgA S&P 500 Equal Weighted Index 68,881,607 5.2¢ T. Rowe Price 136,339,783 10.3¢ Wedge Capital Partners 26,288,221 2.0¢ TimesSquare 29,696,605 2.2¢ Great Lakes SmidCap 26,105,363 2.0¢ Reinhart Partners 26,395,032 2.0¢ Lee Munder (LMCG)48,904,793 3.7¢ Loomis Small Cap 56,820,609 4.3¢ Lazard 83,297,856 6.3¢ Pictet 78,372,100 5.9¢ Berkeley Street 35,964,612 2.7¢ ABS Global 55,833,247 4.2¢ CS McKee 247,302,919 18.6¢ Loomis Fixed Income 112,108,446 8.4¢ Franklin Templeton 76,633,794 5.8¢ Churchill Senior Loan Fund 20,882,197 1.6¢ Morgan Stanley 64,716,623 4.9¢ Prudential PRISA II 26,910,501 2.0¢ Alidade Capital Fund IV 2,073,230 0.2¢ Walton Street Real Estate 6,608,933 0.5¢ AEW Real Estate 5,517,887 0.4¢ Dune Real Estate IV 875,219 0.1¢ Macquarie II U.S.2,160,759 0.2¢ Macquarie Fund III Europe 3,976,395 0.3¢ ValStone Opportunity Fund V 3,326,147 0.3¢ Cash and Equivalents Account 115,878 0.0¢ Private Markets Cash 8,156,619 0.6¢ Asset Allocation By Manager Total Fund Composite As of October 31, 2019 Page 4 Financial Reconciliation Month to Date Market Value 10/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 10/31/2019 Total Fund Composite 1,310,646,371 -433,576 -1,000,000 -60,124 -505 1,353,919 15,388,287 1,326,761,523 Total Equity Composite 732,834,305 -3,000,000 26,973 --60,124 -505 389,056 15,206,270 745,395,976 Total Domestic Equity 485,616,532 -3,000,000 ----39 293,019 9,018,650 491,928,162 Total Large Cap Equity Composite 275,149,588 -3,000,000 ----171,376 5,396,574 277,717,539 SSgA S&P 500 73,895,185 -3,000,000 -----1,600,963 72,496,148 SSgA S&P 500 Equal Weighted Index 67,995,904 ------885,704 68,881,607 T. Rowe Price 133,258,500 -----171,376 2,909,907 136,339,783 Total Mid Cap Equity Composite 107,244,073 -----39 92,093 1,149,094 108,485,221 Wedge Capital Partners 26,320,097 -----39,776 -71,652 26,288,221 TimesSquare 29,097,632 -----39 12,235 586,776 29,696,605 Great Lakes SmidCap 25,769,123 -----22,614 313,626 26,105,363 Reinhart Partners 26,057,221 -----17,468 320,343 26,395,032 Total Small Cap Equity Composite 103,222,871 -----29,549 2,472,982 105,725,402 Lee Munder (LMCG)47,794,976 -----18,948 1,090,869 48,904,793 Loomis Small Cap 55,427,895 -----10,601 1,382,113 56,820,609 Total International Equity 191,384,527 -26,973 --60,124 -467 96,038 6,187,621 197,634,567 Lazard 81,257,088 -----467 26,070 2,015,165 83,297,856 Pictet 76,016,420 ----33,151 -69,968 2,318,862 78,372,100 Berkeley Street 34,111,019 -26,973 --26,973 --1,853,593 35,964,612 Total Long/Short Equity Composite 55,833,247 -------55,833,247 ABS Global 55,833,247 -------55,833,247 Total Fixed Income Composite 455,785,590 -----971,754 170,012 456,927,356 Total Domestic Fixed Income 358,283,378 -----971,754 156,233 359,411,365 CS McKee 246,503,355 -----679,043 120,521 247,302,919 Loomis Fixed Income 111,780,023 -----292,711 35,712 112,108,446 Total Global Fixed 76,620,015 ------13,779 76,633,794 Franklin Templeton 76,620,015 ------13,779 76,633,794 Private Fixed Income 20,882,197 -------20,882,197 Churchill Senior Loan Fund 20,882,197 -------20,882,197 Financial Reconciliation Total Fund Quarter To Date Ending October 31, 2019 Page 5 Financial Reconciliation Total Fund Quarter To Date Ending October 31, 2019 Market Value 10/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 10/31/2019 Total Real Assets 117,326,575 -1,160,880 ------116,165,695 Total Real Estate (Composite)106,600,443 101,951 ------106,702,394 Morgan Stanley 64,716,623 -------64,716,623 Prudential PRISA II 26,910,501 -------26,910,501 Alidade Capital Fund IV 2,073,230 -------2,073,230 Walton Street Real Estate 6,913,585 -304,652 ------6,608,933 AEW Real Estate 2,555,642 203,302 ------2,758,944 Dune Real Estate IV 437,610 -------437,610 Private Investments 10,726,132 -1,262,831 ------9,463,301 Macquarie II U.S.3,399,039 -1,238,280 ------2,160,759 Macquarie Fund III Europe 3,976,395 -------3,976,395 ValStone Opportunity Fund V 3,350,698 -24,551 ------3,326,147 Total Cash Composite 4,699,901 4,160,880 406,603 -1,000,000 ---6,891 12,005 8,272,497 Cash and Equivalents Account 115,403 593,397 406,603 -1,000,000 --517 -43 115,878 Private Markets Cash 4,584,498 3,567,483 -----7,408 12,047 8,156,619 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 1,326,761,523 100.0 1.27 1.27 1.27 14.12 10.61 8.63 6.58 8.67 9.25 5.45 06/01/1998 Total Fund Policy Index 1.42 1.42 1.42 14.48 11.60 8.68 6.71 8.50 9.21 5.91 Total Equity Composite 745,395,976 56.2 2.13 2.13 2.13 19.98 11.83 11.48 8.11 11.03 11.40 5.28 04/01/1998 Total Equity Index 2.44 2.44 2.44 20.38 12.31 12.40 8.89 12.32 12.39 6.58 Total Fixed Income Composite 456,927,356 34.4 0.25 0.25 0.25 7.43 9.04 3.71 3.10 3.00 4.28 5.24 04/01/1998 Total Fixed Income Index 0.32 0.32 0.32 8.73 11.18 3.20 3.10 2.48 3.49 4.90 Total Real Assets 116,165,695 8.8 0.00 0.00 0.00 6.75 9.13 9.56 10.48 11.38 10.92 7.38 07/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 3.77 5.60 7.31 9.35 10.30 10.86 5.35 Total Cash Composite 3,183,856 0.2 Asset Allocation & Performance Total Fund Composite As of October 31, 2019 Page 7 Asset Allocation & Performance Total Fund Composite As of October 31, 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 491,928,162 37.1 1.92 1.92 1.92 22.05 12.21 13.32 N/A N/A N/A N/A 10/01/1986 Total Large Cap Equity Composite 277,717,539 20.9 2.02 2.02 2.02 23.57 14.58 14.54 10.84 13.95 13.69 10.25 07/01/2008 SSgA S&P 500 (1.5 bps)72,496,148 5.5 2.17 2.17 2.17 23.12 14.29 14.89 10.77 13.90 13.69 13.36 10/01/2009 S&P 500 Index 2.17 2.17 2.17 23.16 14.33 14.91 10.78 13.91 13.70 13.36 SSgA S&P 500 Equal Weighted Index (4 bps)68,881,607 5.2 1.30 1.30 1.30 22.35 13.19 N/A N/A N/A N/A 4.50 02/01/2018 S&P 500 Equal Weighted 1.27 1.27 1.27 21.63 12.84 12.43 9.08 13.47 13.95 4.24 T. Rowe Price (25 bps)136,339,783 10.3 2.31 2.31 2.31 24.44 15.43 15.83 11.85 14.71 14.19 13.84 10/01/2009 S&P 500 Index 2.17 2.17 2.17 23.16 14.33 14.91 10.78 13.91 13.70 13.36 Total Mid Cap Equity Composite 108,485,221 8.2 1.16 1.16 1.16 20.95 10.87 11.32 7.73 11.62 12.62 9.24 07/01/2008 Wedge Capital Partners (75 bps)26,288,221 2.0 -0.12 -0.12 -0.12 15.83 5.26 7.67 6.05 11.40 13.04 7.63 05/01/2007 Russell Midcap Value Index 0.54 0.54 0.54 20.11 10.08 8.90 6.95 11.70 12.90 6.87 TimesSquare (80 bps)29,696,605 2.2 2.06 2.06 2.06 30.60 20.25 17.49 11.78 14.82 14.88 14.82 09/01/2009 Russell Midcap Growth Index 1.85 1.85 1.85 27.56 18.93 16.81 10.92 14.48 14.76 14.67 Great Lakes SmidCap (55 bps)26,105,363 2.0 1.30 1.30 1.30 N/A N/A N/A N/A N/A N/A -0.42 05/01/2019 Russell 2500 Index 1.91 1.91 1.91 19.97 8.84 11.74 8.04 11.90 13.10 0.08 Reinhart Partners (65 bps)26,395,032 2.0 1.30 1.30 1.30 N/A N/A N/A N/A N/A N/A 4.12 05/01/2019 Russell 2500 Index 1.91 1.91 1.91 19.97 8.84 11.74 8.04 11.90 13.10 0.08 Total Small Cap Equity Composite 105,725,402 8.0 2.42 2.42 2.42 19.26 7.60 12.27 8.21 11.05 12.03 9.73 07/01/2008 Lee Munder (LMCG) (70 bps)48,904,793 3.7 2.32 2.32 2.32 19.74 8.06 8.62 7.88 11.06 11.60 8.99 09/01/2005 Russell 2000 Value Index 2.42 2.42 2.42 15.55 3.22 8.60 6.24 9.93 11.08 6.60 Loomis Small Cap (90 bps)56,820,609 4.3 2.51 2.51 2.51 18.68 7.06 18.38 11.33 14.62 N/A 14.31 09/01/2012 Russell 2000 Growth Index 2.85 2.85 2.85 18.62 6.40 13.22 8.38 12.38 13.38 12.04 Page 8 Asset Allocation & Performance Total Fund Composite As of October 31, 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 197,634,567 14.9 3.28 3.28 3.28 18.09 12.59 8.72 5.42 6.93 6.75 3.97 07/01/2008 Total International Equity Index 3.50 3.50 3.50 15.99 11.84 8.60 4.31 5.96 5.11 2.62 Lazard (75 bps)83,297,856 6.3 2.51 2.51 2.51 14.74 11.85 9.15 4.96 7.80 7.90 5.66 09/01/2006 MSCI AC World ex USA 3.50 3.50 3.50 15.99 11.84 8.60 4.31 5.96 5.43 3.82 Pictet (65 bps)78,372,100 5.9 3.14 3.14 3.14 20.32 9.58 7.86 5.78 6.82 6.18 1.63 01/01/2008 MSCI EAFE Index 3.60 3.60 3.60 17.43 11.63 9.02 4.81 7.03 5.90 2.19 Berkeley Street (95 bps)35,964,612 2.7 5.43 5.43 5.43 21.34 21.83 9.86 5.89 5.42 N/A 5.42 11/01/2012 MSCI Emerging Markets Index 4.23 4.23 4.23 10.72 12.29 7.76 3.32 3.48 4.14 3.48 Total Long/Short Equity Composite 55,833,247 4.2 0.00 0.00 0.00 9.10 6.02 N/A N/A N/A N/A N/A 10/01/2010 ABS Global (100 bps)55,833,247 4.2 0.00 0.00 0.00 9.10 6.02 4.87 3.56 5.83 N/A 4.91 10/01/2010 HFRI FOF: Strategic Index 0.93 0.93 0.93 6.84 4.16 3.72 2.26 3.58 2.94 2.78 Total Domestic Fixed Income 359,411,365 27.1 0.31 0.31 0.31 9.02 11.04 3.77 N/A N/A N/A N/A 07/01/2008 CS McKee (35 bps)247,302,919 18.6 0.32 0.32 0.32 8.92 11.12 3.57 3.54 2.95 N/A 3.97 02/01/2010 Blmbg. Barc. U.S. Aggregate Index 0.30 0.30 0.30 8.85 11.51 3.29 3.24 2.74 3.73 3.70 Loomis Fixed Income (30 bps)112,108,446 8.4 0.29 0.29 0.29 9.24 10.87 4.29 3.71 3.80 N/A 5.65 04/01/2010 Blmbg. Barc. U.S. Aggregate Index 0.30 0.30 0.30 8.85 11.51 3.29 3.24 2.74 3.73 3.73 Total Global Fixed 76,633,794 5.8 0.02 0.02 0.02 0.76 0.76 N/A N/A N/A N/A N/A 04/01/2010 Franklin Templeton (60 bps)76,633,794 5.8 0.02 0.02 0.02 0.76 0.76 2.71 0.74 1.77 N/A 2.72 04/01/2010 JPM Global Government Bond Index 0.45 0.45 0.45 7.06 10.25 2.57 2.20 0.94 2.05 2.46 Page 9 Asset Allocation & Performance Total Fund Composite As of October 31, 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)106,702,394 8.0 0.00 0.00 0.00 5.77 8.26 N/A N/A N/A N/A N/A 09/01/2016 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 3.77 5.60 7.31 9.35 10.30 10.86 7.60 Morgan Stanley (84 bps)64,716,623 4.9 0.00 0.00 0.00 5.50 7.85 9.08 11.04 12.16 12.58 6.58 01/01/2008 NCREIF Fund Index-ODCE (VW)0.00 0.00 0.00 3.77 5.60 7.31 9.35 10.30 10.86 5.27 Prudential PRISA II (85 bps)26,910,501 2.0 0.00 0.00 0.00 5.32 7.04 8.85 10.92 11.84 N/A 12.10 10/01/2011 NCREIF Property Index 0.00 0.00 0.00 4.80 6.24 6.76 8.57 9.29 9.77 9.40 Total Cash Composite 8,272,497 0.6 Cash and Equivalents Account (No fee)115,878 0.0 Private Markets Cash 8,156,619 0.6 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 5.25 8.22 5.16 8.02 N/A N/A 7.60 08/27/2014 Macquarie II U.S.0.00 0.00 0.00 8.55 10.25 7.25 5.34 7.13 8.93 8.10 10/09/2008 Macquarie Fund III Europe 0.00 0.00 0.00 39.77 37.17 13.68 10.84 9.40 7.95 8.26 10/17/2008 Alidade Capital Fund IV 0.00 0.00 0.00 6.03 6.21 N/A N/A N/A N/A 4.63 04/20/2017 Walton Street Real Estate 0.00 0.00 0.00 4.16 7.11 N/A N/A N/A N/A 10.40 05/25/2017 AEW Real Estate 0.00 0.00 0.00 13.44 23.03 N/A N/A N/A N/A 10.06 09/26/2017 Churchill Senior Loan Fund 0.00 0.00 0.00 5.64 7.11 N/A N/A N/A N/A 7.25 12/07/2017 Dune Real Estate IV 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A 0.00 08/22/2019 Comparative Performance - IRR Private Investments As of October 31, 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. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. 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