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HomeMy WebLinkAboutReports - 2019.12.31 - 33080<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2903" DocumentTypeId="2" EffectiveDate="12/31/2019" Interval="1" /> Investment Performance Review Period Ending December 31, 2019 Oakland County ERS Defined Benefit Plan Monthly Flash Report Market UpdateRussell Indices Style Returns Equities Month 3 M YTD 1 Year 3 Yr Ann 5 Yr Ann VBG VBGS&P 500 Total Return 3.02 9.07 31.49 31.49 15.27 11.70Russell Midcap Index 2.29 7.06 30.54 30.54 12.06 9.33Russell 2000 Index 2.88 9.94 25.53 25.53 8.59 8.23Russell 1000 Growth Indx 3.02 10.62 36.39 36.39 20.49 14.63Russell 1000 Value Index 2.75 7.41 26.54 26.54 9.68 8.29Russell 3000 Index 2.89 9.10 31.02 31.02 14.57 11.24MSCI EAFE NR 3.25 8.17 22.01 22.01 9.56 5.67MSCI EM NR 7.46 11.84 18.44 18.44 11.57 5.61Fixed IncomeMonth3 MYTD1 YearMod. Adj. DurationYield to WorstCurrencies12/31/1912/31/1812/31/17U.S. Aggregate (0.07) 0.18 8.72 8.72 5.87 2.31 Euro Spot 1.12 1.15 1.20U.S. Corporate Investment Grade 0.32 1.18 14.54 14.54 7.89 2.84 British Pound Spot 1.33 1.28 1.35U.S. Corporate High Yield 2.00 2.61 14.32 14.32 3.05 5.19 Japanese Yen Spot 108.61 109.69 112.69Global Aggregate 0.58 0.49 6.84 6.84 7.12 1.45 Swiss Franc Spot 0.97 0.98 0.97Key Rates12/31/1912/31/1812/31/1712/31/1612/31/15Commodities12/31/1912/31/1812/31/173 Month 1.54 2.35 1.38 0.50 0.16 Oil 61.06 48.62 54.55US 2 Year 1.57 2.49 1.88 1.19 1.05 Gasoline 2.59 2.26 2.49US 10 Year 1.92 2.68 2.41 2.44 2.27 Natural Gas 2.19 3.00 3.00US 30 Year 2.39 3.01 2.74 3.07 3.02 Gold 1,523.10 1,318.50 1,187.30ICE LIBOR USD 3M 1.91 2.81 1.69 1.00 0.61 Silver 17.92 16.05 16.50Euribor 3 Month ACT/360 (0.38) (0.31) (0.33) (0.32) (0.13) Copper 279.70 265.15 338.00Bankrate 30Y Mortgage Rates Na 3.86 4.51 3.85 4.06 3.90 Corn 387.75 407.00 408.25Prime 4.75 5.50 4.50 3.75 3.50 BBG Commodity TR Idx 172.00 159.72 179.96Source: Bloomberg & Investment Metrics. For informational purposes only and should not be regarded as investment advice. Information is based on sources and data believed to be reliable, butAndCo Consulting cannot guarantee the accuracy, adequacy or completeness of the information. The material provided herein is valid only as of the date of distribution and not as of any future date.December 31, 2019Index Returns (%)L 26.5 31.4 36.4 L-8.3 -4.8 -1.5M 27.0 30.5 35.5 M-12.3 -9.1 -4.8Levels (%)Levels-11.0 -9.3YTD 2018Index Returns (%)LevelsS 22.4 25.5 28.4 S-12.950.332.732.131.529.329.027.927.626.424.620.811.80.010.020.030.040.050.060.0YTD Sector Returns6.54.10.8-0.3-2.2-4.4-8.4-12.5-13.0-13.3-14.7-18.1-20.0-15.0-10.0-5.00.05.010.02018 Sector Returns 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 (0.5%) Total Real Asset (10.2%) Total Fixed Income Composite (32.3%) Total Long/Short Equity Composite (6.1%) Total International Equity (15.0%) Total Domestic Equity (35.9%) 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 761,900,313 100.0 N/A N/A 100.0 --- Total Domestic Equity 273,689,503 35.9 10.0 50.0 35.0 -197,499,471 107,260,654 -7,024,393 Total International Equity 114,380,810 15.0 5.0 20.0 15.0 -76,285,794 37,999,253 -95,763 Total Long/Short Equity Composite 46,261,968 6.1 0.0 7.5 5.0 -46,261,968 10,880,556 -8,166,952 Total Fixed Income Composite 246,033,115 32.3 10.0 55.0 35.0 -169,843,083 173,012,057 20,631,995 Total Real Asset 77,961,933 10.2 0.0 15.0 10.0 -77,961,933 36,323,114 -1,771,901 Total Cash Composite 3,572,986 0.5 0.0 5.0 0.0 -3,572,986 34,522,030 -3,572,986 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of December 31, 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 (0.5%) Total Real Asset (10.2%) Total Fixed Income Composite (32.3%) Total Long/Short Equity Composite (6.1%) Total International Equity (15.0%) Total Small Cap Equity Composite (6.9%) Total Mid Cap Equity Composite (8.1%) Total Large Cap Equity Composite (20.9%) Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Target Rebal. ($000) Total Fund Composite 761,900,313 100.0 100.0 - Total Large Cap Equity Composite 159,314,955 20.9 20.0 -6,934,892 Total Mid Cap Equity Composite 61,944,948 8.1 7.5 -4,802,424 Total Small Cap Equity Composite 52,429,600 6.9 7.5 4,712,924 Total International Equity 114,380,810 15.0 15.0 -95,763 Total Long/Short Equity Composite 46,261,968 6.1 5.0 -8,166,952 Total Fixed Income Composite 246,033,115 32.3 35.0 20,631,995 Total Real Asset 77,961,933 10.2 10.0 -1,771,901 Total Cash Composite 3,572,986 0.5 0.0 -3,572,986 Asset Allocation Compliance Oakland County Employees' Retirement System Total Fund Composite As of December 31, 2019 Page 3 November 30, 2019 : $748,028,371 December 31, 2019 : $761,900,313 Allocation Market Value Allocation SSgA S&P 500 39,842,260 5.3¢ SSgA S&P 500 Equal Weighted Index 38,353,821 5.1¢ T. Rowe Price 76,586,978 10.2¢ Wedge Capital Partners 14,465,831 1.9¢ TimesSquare 15,183,821 2.0¢ Great Lakes SmidCap 15,421,789 2.1¢ Reinhart Partners 15,696,883 2.1¢ Lee Munder (LMCG)26,711,965 3.6¢ Loomis Small Cap 24,329,018 3.3¢ Lazard 39,102,760 5.2¢ Pictet 50,144,103 6.7¢ Berkeley Street 20,474,917 2.7¢ ABS Global 46,261,968 6.2¢ CS McKee 122,331,336 16.4¢ Loomis Fixed Income 74,913,597 10.0¢ Franklin Templeton 36,083,610 4.8¢ Churchill Senior Loan Fund 12,229,044 1.6¢ Morgan Stanley 44,833,926 6.0¢ JPM Euro Property 118,075 0.0¢ Prudential PRISA II 19,295,324 2.6¢ Alidade Capital Fund IV 3,780,383 0.5¢ Walton Street Real Estate 3,405,990 0.5¢ AEW Real Estate 2,758,944 0.4¢ Dune Real Estate IV 349,939 0.0¢ ValStone Opportunity Fund V 2,217,432 0.3¢ Cash and Equivalents Account 5,581 0.0¢ Private Markets Cash 3,129,076 0.4¢ Allocation Market Value Allocation SSgA S&P 500 41,040,977 5.4¢ SSgA S&P 500 Equal Weighted Index 39,437,397 5.2¢ T. Rowe Price 78,836,581 10.3¢ Wedge Capital Partners 14,931,908 2.0¢ TimesSquare 15,357,065 2.0¢ Great Lakes SmidCap 15,705,181 2.1¢ Reinhart Partners 15,950,793 2.1¢ Lee Munder (LMCG)27,553,773 3.6¢ Loomis Small Cap 24,875,827 3.3¢ Lazard 40,760,952 5.3¢ Pictet 51,792,423 6.8¢ Berkeley Street 21,827,435 2.9¢ ABS Global 46,261,968 6.1¢ CS McKee 122,116,111 16.0¢ Loomis Fixed Income 75,065,684 9.9¢ Franklin Templeton 36,622,276 4.8¢ Churchill Senior Loan Fund 12,229,044 1.6¢ Morgan Stanley 45,518,879 6.0¢ JPM Euro Property 118,075 0.0¢ Prudential PRISA II 19,653,114 2.6¢ Alidade Capital Fund IV 3,745,756 0.5¢ Walton Street Real Estate 3,166,077 0.4¢ AEW Real Estate 2,642,958 0.3¢ Dune Real Estate IV 899,643 0.1¢ ValStone Opportunity Fund V 2,217,432 0.3¢ Cash and Equivalents Account 5,587 0.0¢ Private Markets Cash 3,567,398 0.5¢ Asset Allocation By Manager Total Fund Composite As of December 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 12/31/2019 Total Fund Composite 745,464,983 -797,028 -18,000,000 -300,376 -8,408 3,991,949 29,955,137 761,900,313 Total Equity Composite 402,768,787 -47,016 --113,848 -7,730 1,412,357 30,225,698 434,332,280 Total Domestic Equity 252,746,779 -----6,268 890,905 20,058,087 273,689,503 Total Large Cap Equity Composite 146,328,255 -----5,093 372,632 12,619,161 159,314,955 SSgA S&P 500 37,628,762 -----1,868 -3,414,083 41,040,977 SSgA S&P 500 Equal Weighted Index 36,613,179 -----3,118 -2,827,335 39,437,397 T. Rowe Price 72,086,314 -----107 372,632 6,377,742 78,836,581 Total Mid Cap Equity Composite 58,548,861 -----679 379,110 3,017,657 61,944,948 Wedge Capital Partners 14,408,448 -----265 147,005 376,721 14,931,908 TimesSquare 14,177,972 -----185 39,996 1,139,283 15,357,065 Great Lakes SmidCap 14,824,135 -----54 70,607 810,494 15,705,181 Reinhart Partners 15,138,306 -----175 121,502 691,160 15,950,793 Total Small Cap Equity Composite 47,869,663 -----495 139,164 4,421,268 52,429,600 Lee Munder (LMCG)25,302,071 -----189 114,650 2,137,241 27,553,773 Loomis Small Cap 22,567,592 -----306 24,514 2,284,027 24,875,827 Total International Equity 105,202,074 -47,016 --113,848 -1,462 521,452 8,725,577 114,380,810 Lazard 37,590,425 -----1,462 224,919 2,947,070 40,760,952 Pictet 48,276,973 ----66,832 -296,533 3,285,749 51,792,423 Berkeley Street 19,334,677 -47,016 --47,016 --2,492,758 21,827,435 Total Long/Short Equity Composite 44,819,934 ------1,442,034 46,261,968 ABS Global 44,819,934 ------1,442,034 46,261,968 Total Fixed Income Composite 263,340,605 -18,300,274 ----674 2,134,483 -1,141,025 246,033,115 Total Domestic Fixed Income 214,583,507 -18,000,000 ----674 1,589,302 -990,340 197,181,795 CS McKee 139,925,447 -18,000,000 ----456 978,925 -787,805 122,116,111 Loomis Fixed Income 74,658,060 -----218 610,378 -202,535 75,065,684 Total Global Fixed 36,227,780 -----545,181 -150,685 36,622,276 Franklin Templeton 36,227,780 -----545,181 -150,685 36,622,276 Private Fixed Income 12,529,318 -300,274 ------12,229,044 Churchill Senior Loan Fund 12,529,318 -300,274 ------12,229,044 Financial Reconciliation Total Fund Quarter To Date Ending December 31, 2019 Page 5 Financial Reconciliation Total Fund Quarter To Date Ending December 31, 2019 Market Value 10/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 12/31/2019 Total Real Asset 76,358,514 574,051 ---186,528 -442,609 773,287 77,961,933 Total Real Estate 74,124,715 590,418 ---186,528 -442,609 773,287 75,744,501 Morgan Stanley 44,833,926 ----116,374 -442,609 358,718 45,518,879 JPM Euro Property 118,075 -------118,075 Prudential PRISA II 19,295,324 ----56,779 --414,569 19,653,114 Alidade Capital Fund IV 3,455,383 290,373 ------3,745,756 Walton Street Real Estate 3,516,426 -336,975 ---13,375 ---3,166,077 AEW Real Estate 2,555,642 87,316 ------2,642,958 Dune Real Estate IV 349,939 549,704 ------899,643 Private Investments 2,233,799 -16,367 ------2,217,432 ValStone Opportunity Fund V 2,233,799 -16,367 ------2,217,432 Total Cash Composite 2,997,078 17,726,223 750,012 -18,000,000 --4 2,499 97,177 3,572,986 Cash and Equivalents Account 5,534 17,249,988 750,012 -18,000,000 --4 57 -5,587 Private Markets Cash 2,991,544 476,235 ----2,442 97,177 3,567,398 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 761,900,313 100.0 1.81 4.63 4.63 17.60 17.60 8.86 7.20 8.38 8.58 8.42 10/01/1986 Total Fund Policy Index 1.92 4.89 4.89 18.40 18.40 9.07 7.16 8.67 8.98 8.87 Total Equity Composite 434,332,280 57.0 2.79 7.86 7.86 26.48 26.48 11.65 8.86 11.21 10.91 9.69 10/01/1986 Total Equity Index 3.27 8.90 8.90 27.97 27.97 12.47 9.78 12.91 12.19 10.09 Total Fixed Income Composite 246,033,115 32.3 0.19 0.39 0.39 8.16 8.16 4.24 3.35 3.06 4.40 6.36 10/01/1986 Total Fixed Income Index 0.07 0.20 0.20 8.59 8.59 4.11 2.97 2.49 3.54 6.15 Total Real Asset 77,961,933 10.2 1.58 1.58 1.58 7.26 7.26 8.64 10.16 10.92 10.45 5.00 07/01/2008 NCREIF Fund Index-ODCE (VW)1.52 1.52 1.52 5.35 5.35 7.10 8.97 10.17 11.42 5.41 Total Cash Composite 3,572,986 0.5 Asset Allocation & Performance Total Fund Composite As of December 31, 2019 Page 7 Asset Allocation & Performance Total Fund Composite As of December 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 273,689,503 35.9 2.66 8.29 8.29 29.84 29.84 12.99 N/A N/A N/A N/A 10/01/1986 Total Large Cap Equity Composite 159,314,955 20.9 2.93 8.88 8.88 32.10 32.10 15.27 11.86 14.87 13.64 10.88 07/01/2008 SSgA S&P 500 (1.5 bps)41,040,977 5.4 3.01 9.07 9.07 31.49 31.49 15.30 11.75 14.81 13.63 13.92 10/01/2009 S&P 500 Index 3.02 9.07 9.07 31.49 31.49 15.27 11.70 14.73 13.56 13.86 SSgA S&P 500 Equal Weighted Index (4 bps)39,437,397 5.2 2.83 7.72 7.72 30.10 30.10 N/A N/A N/A N/A 7.50 02/01/2018 S&P 500 Equal Weighted 2.78 7.61 7.61 29.24 29.24 12.38 9.77 13.88 13.53 7.20 T. Rowe Price (25 bps)78,836,581 10.3 2.94 9.36 9.36 33.09 33.09 16.71 12.82 15.59 14.12 14.41 10/01/2009 S&P 500 Index 3.02 9.07 9.07 31.49 31.49 15.27 11.70 14.73 13.56 13.86 Total Mid Cap Equity Composite 61,944,948 8.1 1.94 5.80 5.80 25.70 25.70 10.03 7.82 11.85 11.96 9.47 07/01/2008 Wedge Capital Partners (75 bps)14,931,908 2.0 3.22 3.63 3.63 20.16 20.16 6.67 5.65 11.22 12.23 7.77 05/01/2007 Russell Midcap Value Index 3.04 6.36 6.36 27.06 27.06 8.10 7.62 12.00 12.41 7.25 TimesSquare (80 bps)15,357,065 2.0 1.14 8.32 8.32 38.50 38.50 18.21 12.75 15.20 14.35 15.20 09/01/2009 Russell Midcap Growth Index 1.17 8.17 8.17 35.47 35.47 17.36 11.60 14.81 14.24 15.09 Great Lakes SmidCap (55 bps)15,705,181 2.1 1.84 5.94 5.94 N/A N/A N/A N/A N/A N/A 4.21 05/01/2019 Russell 2500 Index 2.11 8.54 8.54 27.77 27.77 10.33 8.93 12.26 12.58 6.58 Reinhart Partners (65 bps)15,950,793 2.1 1.62 5.37 5.37 N/A N/A N/A N/A N/A N/A 8.27 05/01/2019 Russell 2500 Index 2.11 8.54 8.54 27.77 27.77 10.33 8.93 12.26 12.58 6.58 Total Small Cap Equity Composite 52,429,600 6.9 2.72 9.53 9.53 27.61 27.61 9.92 9.12 11.86 11.90 10.22 07/01/2008 Lee Munder (70 bps)27,553,773 3.6 3.15 8.90 8.90 27.42 27.42 5.76 8.70 11.39 11.27 9.36 09/01/2005 Russell 2000 Value Index 3.50 8.49 8.49 22.39 22.39 4.77 6.99 10.13 10.56 6.95 Loomis Small Cap (90 bps)24,875,827 3.3 2.25 10.23 10.23 27.80 27.80 18.11 12.60 15.52 N/A 15.17 09/01/2012 Russell 2000 Growth Index 2.29 11.39 11.39 28.48 28.48 12.49 9.34 13.08 13.01 12.98 Page 8 Asset Allocation & Performance Total Fund Composite As of December 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 114,380,810 15.0 4.27 8.79 8.79 24.67 24.67 11.01 7.27 6.87 6.84 4.38 07/01/2008 Total International Equity Index 4.36 8.99 8.99 22.13 22.13 10.40 6.01 5.93 5.29 3.05 Lazard (75 bps)40,760,952 5.3 4.24 8.44 8.44 21.23 21.23 11.42 6.61 7.67 7.90 5.98 09/01/2006 MSCI AC World ex USA 4.36 8.99 8.99 22.13 22.13 10.40 6.01 5.93 5.45 4.17 Pictet (65 bps)51,792,423 6.8 3.33 7.42 7.42 25.32 25.32 9.23 7.46 6.71 6.23 1.96 01/01/2008 MSCI EAFE Index 3.27 8.21 8.21 22.66 22.66 10.11 6.18 6.85 6.00 2.53 Berkeley Street (95 bps)21,827,435 2.9 6.61 12.89 12.89 29.92 29.92 15.09 8.85 5.56 N/A 6.30 11/01/2012 MSCI Emerging Markets Index 7.53 11.93 11.93 18.90 18.90 11.99 6.01 3.64 4.04 4.43 Total Long/Short Equity Composite 46,261,968 6.1 0.00 3.22 3.22 12.61 12.61 5.92 3.56 4.99 N/A 4.37 10/01/2010 ABS Global (100 bps)46,261,968 6.1 0.00 3.22 3.22 12.61 12.61 5.92 3.61 6.04 N/A 5.20 10/01/2010 HFRI FOF: Strategic Index 2.43 4.59 4.59 10.58 10.58 4.70 2.67 3.82 3.09 3.12 Total Domestic Fixed Income 197,181,795 25.9 -0.03 0.28 0.28 9.30 9.30 4.52 N/A N/A N/A N/A 07/01/2008 CS McKee (35 bps)122,116,111 16.0 -0.18 0.12 0.12 9.16 9.16 4.28 3.44 3.00 N/A 3.95 02/01/2010 Blmbg. Barc. U.S. Aggregate Index -0.07 0.18 0.18 8.72 8.72 4.03 3.05 2.72 3.75 3.62 Loomis Fixed Income (30 bps)75,065,684 9.9 0.20 0.55 0.55 9.55 9.55 4.98 3.86 3.78 N/A 5.62 04/01/2010 Blmbg. Barc. U.S. Aggregate Index -0.07 0.18 0.18 8.72 8.72 4.03 3.05 2.72 3.75 3.66 Total Global Fixed 36,622,276 4.8 1.49 1.09 1.09 1.85 1.85 1.93 N/A N/A N/A N/A 04/01/2010 Franklin Templeton (60 bps)36,622,276 4.8 1.49 1.09 1.09 1.85 1.85 1.93 1.38 1.58 N/A 2.79 04/01/2010 JPM Global Government Bond Index 0.17 -0.52 -0.52 6.02 6.02 4.01 2.16 0.97 2.15 2.32 Page 9 Asset Allocation & Performance Total Fund Composite As of December 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 75,744,501 9.9 1.63 1.63 1.63 7.32 7.32 8.65 N/A N/A N/A 9.16 09/01/2016 NCREIF Fund Index-ODCE (VW)1.52 1.52 1.52 5.35 5.35 7.10 8.97 10.17 11.42 7.69 Morgan Stanley (84 bps)45,518,879 6.0 1.79 1.79 1.79 7.38 7.38 8.76 10.40 11.93 12.97 6.62 01/01/2008 NCREIF Fund Index-ODCE (VW)1.52 1.52 1.52 5.35 5.35 7.10 8.97 10.17 11.42 5.33 Prudential PRISA II (85 bps)19,653,114 2.6 2.15 2.15 2.15 7.52 7.52 8.33 10.49 11.66 N/A 12.02 10/01/2011 NCREIF Property Index 0.00 0.00 0.00 4.80 4.80 6.15 7.92 8.90 10.01 9.20 JPM Euro Property 118,075 0.0 0.00 0.00 0.00 -21.58 -21.58 2.50 2.37 1.65 -0.25 -1.13 04/01/2009 NCREIF Property Index 0.00 0.00 0.00 4.80 4.80 6.15 7.92 8.90 10.01 8.18 Total Cash Composite 3,572,986 0.5 Cash and Equivalents Account (No fee)5,587 0.0 Private Markets Cash 3,567,398 0.5 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 5.26 5.26 6.27 7.39 N/A N/A 7.34 08/27/2014 Alidade Capital Fund IV 0.00 0.00 0.00 5.97 5.97 N/A N/A N/A N/A 4.27 04/20/2017 Walton Street Real Estate 0.00 -0.39 -0.39 5.60 5.60 N/A N/A N/A N/A 10.26 05/24/2017 AEW Real Estate 0.00 0.00 0.00 12.85 12.85 N/A N/A N/A N/A 8.72 09/28/2017 Churchill Senior Loan Fund 0.00 0.00 0.00 5.69 5.69 N/A N/A N/A N/A 6.59 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 -17.33 08/22/2019 Comparative Performance - IRR Alternative Investments As of December 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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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 CHICAGO | CLEVELAND | DALLAS | DETROIT | ORLANDO | PITTSBURGH | RENO