board of trustees regularly scheduled meeting …€¦ · thursday, february 23, 2017 – 9:00 am ....
TRANSCRIPT
BOARD OF TRUSTEES
REGULARLY SCHEDULED MEETING
February 23, 2017
MEETING DOCUMENTS
TRS Board Meeting
February 23, 2017
Table of Contents
Agenda…………………………………………..……………………….…………3
Item 2: Minutes……………………………………………………………….……5
Item 4: Investment Consultant Monthly Report………………………………….12
Investment Consultant Quarterly Report…………………………………27
Item 5A: Asset Allocation memorandum…………….……………………..……93
Item 5 B: Manager Status Report………………………………………...………95
Item 5 D: Chief Investment Officer Report……………………………………....96
Item 8: Permanent Rules for adoption……………………………………..……103
Item 9: Employer Late Fee Waiver report………………………………...……108
Late Fee memo…………………………………………………………110
Item 10 A: Client Services Report……………………………….………………119
Item 10 B: Human Resources Report……………………………………...….…121
Item 10 C: Finance Reports………………………………………………..……122
Item 10 D: General Counsel’s report……………………………………………129
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TEACHERS’ RETIREMENT SYSTEM OF OKLAHOMA Regular Board Meeting
Thursday, February 23, 2017 – 9:00 AM Embassy Suites Hotel & Conference Center
Boomer Conference Room 2501 Conference Drive, Norman, Oklahoma
AGENDA
1. ROLL CALL FOR QUORUM
2. DISCUSSION AND POSSIBLE ACTION ON APPROVAL OF MINUTES:January 25, 2017, Regular Meeting
3. PRESENTATION BY MIKE WELKER WITH ANDCO CONSULTINGREGARDING STAFFING CHANGES
4. DISCUSSION AND POSSIBLE ACTION ON INVESTMENT CONSULTANT MONTHLYAND QUARTERLY REPORTS
5. DISCUSSION AND POSSIBLE ACTION ON INVESTMENT COMMITTEE REPORT:A. DISCUSSION AND POSSIBLE ACTION TO ADOPT STRATEGIC ASSET
ALLOCATION B. DISCUSSION AND POSSIBLE ACTION ON MANAGER STATUS REPORT
The Investment Committee may recommend through motion to the Board of Trustees to make any changes to the status of any manager (on watch, alert, remove them from that status, or terminate (and select transition manager and reallocate funds if necessary)) based on the information available at the meeting.
C. DISCUSSION AND POSSIBLE ACTION ON MACKAY SHIELDS CONTRACT CHANGES AND FEE REDUCTION
D. DISCUSSION ON CHIEF INVESTMENT OFFICER REPORT
6. DISCUSSION AND POSSIBLE ACTION ON COMMITTEE REPORTS:A. Governance B. Audit
7. DISCUSSION AND POSSIBLE ACTION ON STAFF RECOMMENDATIONS ONPROPOSED LEGISLATION FOR THE 2017 SESSION AND PRESENTATION BYMAJORITY PLUS, INC.
8. DISCUSSION AND POSSIBLE ACTION ON FINAL ADOPTION OF PERMANENT RULES715:1-1-16 [AMENDED]; 715:10-15-3 [AMENDED]; 715:10-15-3.1 [NEW]; 715:10-15-10[AMENDED]; 715:10-15-11.1 [NEW]
9. DISCUSSION AND POSSIBLE ACTION ON EMPLOYER LATE FEE WAIVERREQUESTS:
A. Riverside Public School B. Jenks Public Schools C. Fort Cobb-Broxton Public Schools D. Oklahoma City Public Schools E. Clayton Public Schools F. Duncan Public Schools
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10. DISCUSSION AND POSSIBLE ACTION ON AGENCY REPORTS:A. Client Services B. Human Resources C. Finance D. General Counsel E. Executive Director
11. QUESTIONS AND COMMENTS FROM TRUSTEES
12. NEW BUSINESS (Any matter not known about or which could not have been reasonably foreseenprior to the time of posting. 25 O.S. 2011, §311.)
13. ADJOURNMENT
Note: The Board of Trustees may discuss, vote to approve, vote to disapprove, or decide not to discuss any item on the agenda.
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MEETING MINUTES January 25, 2017
BOARD OF TRUSTEES REGULAR MEETING TEACHERS’ RETIREMENT SYSTEM OF OKLAHOMA
The regularly scheduled meeting of the Board of Trustees of the Teachers’ Retirement System of Oklahoma was called to order by Gary Trennepohl, Chairman, at 9:00 a.m., in the Administration Board Room, 5th Floor, Oliver Hodge Education Building, 2500 N. Lincoln Blvd., OKC, OK. The meeting notice and agenda were posted in accordance with 25 O.S. Section 311(A)(11).
TRUSTEES PRESENT: Gary Trennepohl, Chairman Vernon Florence, Vice-Chairman Judie Harris, Secretary Elaine Dodd Roger Gaddis *Jill GeigerChrista Hughes
David Kinney Shareé Madsen *Kevin MooreMyron Pope *Bill PeacherGreg Winters
TRUSTEES ABSENT: None
TRS STAFF PRESENT: Tom Spencer, Executive Director Julie Ezell, General Counsel Dixie Moody, Director of Client Services Kim Bold, Human Resources Director Sam Moore, Director of Finance/CFO
Debra Plog, Employer Reporting Manager Kirk Stebbins, Chief Investment Officer Melissa Kempkes, Investment Analyst Phyllis Bennett, Executive Assistant
OTHERS PRESENT: Doug Anderson, AndCo Consulting Greg Weaver, AndCo Consulting Jan Pressler, Okla. Attorney General’s Office Sabra Tucker, OREA
Wayne Maxwell, RPOE Luke Martin, Capital Plus Consultants Jim Dunlap, Capital Plus Consultants
*Denotes late arrival or early departure
ITEM 1 – ROLL CALL FOR QUORUM: Chairman Trennepohl called the meeting to order at 9:00 a.m. and asked the recording secretary to call roll to determine if a quorum was present. Trustees responding were Ms. Dodd, Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Dr. Pope, Dr. Winters and Dr. Trennepohl. A quorum was present.
ITEM 2 – DISCUSSION AND POSSIBLE ACTION ON APPROVAL OF DECEMBER 14, 2016, REGULAR BOARD MEETING MINUTES
A motion was made by Dr. Winters with a second made by Ms. Harris to approve the December 14, 2016, Regular Board Meeting minutes as presented. The motion carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Dr. Pope, Dr. Winters and Dr. Trennepohl.
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Mr. Peacher arrived at 9:02 a.m. Mr. Moore arrived at 9:05 a.m.
ITEM 3 – SWEARING IN OF NEW TRUSTEE – ELAINE DODD: Ms. Dodd was selected by the Oklahoma Retired Educators Association to serve on TRS’ Board as the non-voting Trustee. She was also OREA’s designee to the TRS Board in 2015. After reciting Oath of Office and the Loyalty Oath, Ms. Dodd gave a brief biography.
ITEM 4 – DISCUSSION AND POSSIBLE ACTION ON INVESTMENT CONSULTANT MONTHLY REPORT: Greg Weaver announced their firm’s new name, AndCo Consulting, and gave a brief description of the firm. He reminded Trustees that as of February 1 he and Doug Anderson have worked as investment consultants to TRS for 21 years. Mr. Weaver pointed out that the market opened at over 20,000 this morning. Mr. Anderson presented AndCo’s Investment Performance Review through December 31, 2016. The Market Update showed significant year-to-date gains in the Russell 1000 and Russell 2000. The Total Fund Asset Allocation Compliance Summary shows most funds are allocated near their target with the exception of three being underweight from 2.34 to 4.26%. Mr. Anderson reminded Trustees that they are in the process of conducting an asset allocation study. Total Fund Performance shows the total market value at $14.4B; a return of 9.24% since inception; and a return of 10.74% YTD. Total Domestic Equity had a gain of 15.64% YTD; Total International Equity, down .85% YTD due to Brexit, and a gain of 1.87% for the month; Total Fixed Income had a gain of 7.77% YTD and Total Master Limited Partnerships had a gain of 26.63% YTD.
No action was taken.
ITEM 5 – DISCUSSION AND POSSIBLE ACTION ON QUARTERLY 403(b) REPORT: Mr. Weaver and Mr. Anderson spoke about DOL Fiduciary Investment Advice Rules related to retirement plans. The Total Fund Cash Flow Summary shows the 403(b) fund went from $180M September 30, 2016, to $173M as of December 31, 2016. There was discussion on what might have caused the withdrawals. The performance of this plan’s 14 funds show mostly good gains YTD with only one fund below 3%, many in double digits, and one at 21.6%. This 403(b) plan, administered by VOYA, has about 580 active account holders paying into the Plan compared to about 90,000 active members of the TRS pension plan. TRS will continue to monitor this plan and the legislation proposed this session that could allow TRS to wind down and close the plan.
No action was taken.
ITEM 6 – INVESTMENT COMMITTEE REPORT: Investment Committee Chairman Roger Gaddis presented items discussed at the Committee meeting the previous day.
A. DISCUSSION AND POSSIBLE ACTION ON ASSET ALLOCATION STUDY AND ASSET CLASS STRUCTURE ANALYSIS: No action was taken after the previous day’s Investment Committee discussion on TRS’ asset allocation study. Trustees agreed to include discussion of the studies’ results on the agenda of the February Board Retreat.
B. DISCUSSION AND POSSIBLE ACTION ON MANAGER STATUS REPORT INCLUDING EPOCH DOMESTIC ALL CAP EQUITY AND HOISINGTON INVESTMENT MANAGEMENT: Mr. Gaddis introduced a letter Hoisington Investment Management Company sent to TRS as required by contract to report a loss of clients and assets under management.
Mr. Gaddis reported that the Investment Committee has been monitoring Epoch Domestic All Cap Equity for many months.
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A motion out of the Investment Committee to terminate Epoch Domestic All Cap and to appoint Northern Trust to transition the assets to an S&P 500 passive fund was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
C. DISCUSSION AND POSSIBLE ACTION ON ALLOCATION TO PIMCO BRAVO III: Mr. Gaddis reported that contract issues with PIMCO had been worked out and representatives from PIMCO presented to the Investment Committee the previous day. Mr. Anderson of AndCo Consultants presented their Investment Recommendation.
A motion out of the Investment Committee to allocate $175M to the PIMCO Bravo III fund was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
D. DISCUSSION AND POSSIBLE ACTION TO APPROVE ASSIGNMENT OF INVESTMENT MANAGEMENT AGREEMENT AND TRUST AGREEMENT FROM STATE STREET BANK AND TRUST COMPANY TO STATE STREET GLOBAL ADVISORS TRUST COMPANY: Mr. Gaddis presented a letter from State Street requesting TRS consent to assigning its written contract and trust agreement with State Street Bank and Trust (SSBT) to State Street Global Advisors (SSGA). This was done to “simplify the firm’s legal structure, satisfying certain requirements under Dodd-Frank,” and for consistency.
A motion out of the Investment Committee to approve the assignment of Investment Management Agreement and Trust Agreement from State Street Bank and Trust Company to State Street Global Advisors Trust Company was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
F. DISCUSSION ON CHIEF INVESTMENT OFFICER REPORTS: TRS Chief Investment Officer Kirk Stebbins presented his monthly report and reviewed graphs of fixed income returns, Published Universe reports on Funds Over $1B, U.S. Equity and International Equity, as well as various triangle reports covering December 2002 through December 2017. There was discussion on fees. Mr. Stebbins offered to create a report showing fee changes over the years.
No action was taken.
ITEM 7 – DISCUSSION AND POSSIBLE ACTION ON COMMITTEE REPORTS
A. GOVERNANCE: On behalf of Governance Chairman Dr. Pope said the committee had nothing to report.
B. AUDIT: Audit Committee Chairman Greg Winters said TRS’ internal auditor Stinnett & Associates scheduled a conference call for January 30.
ITEM 8 – DISCUSSION AND POSSIBLE ACTION TO APPOINT KPMG AS TAX GUARANTOR IN TAIWAN: TRS General Counsel Julie Ezell explained that KPMG is the only firm that provides tax guarantor services to U.S. investors with investments in Taiwan. Since 2004 TRS’ contract with KPMG was negotiated through TRS’ custodian and now KPMG is contracting directly with each fund. Fees have been around $5K yearly since inception and the new contract will increase the fee by 20%.
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A motion by Dr. Winters with a second by Mr. Gaddis to renew the contact with KPMG as tax guarantor in Taiwan was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
A break was taken from 10:25 a.m. to 10:35 a.m.
ITEM 9 – DISCUSSION AND POSSIBLE ACTION TO SELECT A FIRM TO PROVIDE ACTUARIAL SERVICES OR SELECT FINALISTS FOR INTERVIEW: TRS Executive Director Tom Spencer reviewed his memorandum on actuarial services proposals. The memorandum included details submitted by four firms and TRS staff recommendations.
A motion by Dr. Winters with a second by Dr. Pope to select Gabriel Roeder Smith & Company and Cavanaugh Macdonald as finalists to be interviewed by Trustees at the March regular Board meeting was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
ITEM 10 – DISCUSSION AND POSSIBLE ACTION ON STAFF RECOMMENDATIONS ON PROPOSED LEGISLATION FOR THE 2017 SESSION AND PRESENTATION BY MAJORITY PLUS: TRS Executive Director Tom Spencer introduced Luke Martin and Jim Dunlap of Majority Plus Consultants. Mr. Spencer shared a Bill Status Report prepared by Luke Martin, and his memorandum regarding staff comments on 2017 legislation that could affect TRS. Each bill was reviewed. There was discussion on HB 1328 which would add a retired teacher with at least 10 years of experience to TRS Board of Trustees. The 14-member Board currently requires, and includes, experienced retired teachers. Trustees agreed to monitor this bill and possibly take a position in April.
No action was taken.
ITEM 11 was presented after ITEM 14.
Ms. Geiger arrived at 12:13 p.m.
ITEM 12 – DISCUSSION AND POSSIBLE ACTION ON PROPOSED FINDINGS OF FACT, CONCLUSIONS OF LAW, AND RECOMMENDATION PREPARED BY HEARING OFFICER FOR GRIEVANCE FILED BY DONNIE RILEY: TRS General Counsel Julie Ezell introduced Jan Preslar from the Oklahoma Attorney General’s office and TRS client Donnie Riley. Ms. Ezell presented all documents related to Mr. Riley’s grievance and briefed Trustees on prior proceedings with an administrative law judge and Mr. Riley. Mr. Riley presented his position to the Board.
Mr. Kinney disclosed that he had in the past worked with Ms. Preslar at the Attorney General’s office.
ITEM 13 – DISCUSSION AND POSSIBLE ACTION TO RESOLVE INTO EXECUTIVE SESSION PURSUANT TO 25 O.S. § 307(B)(9) FOR THE PURPOSE OF ENGAGING IN DELIBERATIONS OR RENDERING A FINAL OR INTERMEDIATE DECISION IN AN INDIVIDUAL PROCEEDING PURSUANT TO ARTICLE II OF THE ADMINISTRATIVE PROCEDURES ACT REGARDING THE GRIEVANCE OF DONNIE RILEY A. Vote to Convene into Executive Session: A motion made by Dr. Winters with a second by Mr. Moore to convene into Executive Session was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Mr. Geiger, Ms. Harris, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
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B. Vote to Return to Open Session: A motion made by Dr. Winters with a second by Mr. Peacher to return to Open Session was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Geiger, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
ITEM 14 – DISCUSSION AND POSSIBLE ACTION ON ITEM DISCUSSED IN EXECUTIVE SESSION:
A motion made by Mr. Kinney with a second by Dr. Pope that TRS, to the extent allowed by law, work out a fair and equitable payment plan for Mr. Riley to pay the full amount owed was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Geiger, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl
A motion made by Mr. Kinney with a second by Dr. Pope to approve the findings of fact, conclusions of law, and recommendation made by the Administrative Law Judge for the grievance filed by Donnie Riley was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Geiger, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl. There was discussion about how TRS collects overpayments.
A break for lunch was taken from 12:25 p.m. to 12:40 p.m.
ITEM 11 – DISCUSSION AND POSSIBLE ACTION TO APPROVE THE “SCHEDULE OF EMPLOYER ALLOCATIONS AND COLLECTIVE PENSION AMOUNTS” PREPARED BY EIDE BAILLY: TRS Executive Director Tom Spencer presented Eide Bailly’s report of the GASB 68 employer allocation. This is an annual report that must be approved by TRS Board of Trustees.
A motion made by Dr. Winters with a second made by Kevin Moore to approve the “Schedule of Employer Allocations and Collective Pension Amounts” prepared by Eide Bailly was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Geiger, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl.
ITEM 15 – DISCUSSION AND POSSIBLE ACTION ON AGENCY REPORTS: A. Client Services: Director of Client Services Dixie Moody presented Client Services Performance Metrics through December 2016. TRS received just shy of 400 retirement requests in December. That number will increase as members request summer retirement dates. Over 4,200 calls came into TRS’ main line, 3,894 (92%) of which were answered by an Information Center agent within 11 seconds; 212 (5%) were routed through menu options; and 126 (3%) abandoned their call within 21 seconds. The Information Center received 290 emails in November. There are now 10,946 portal clients with confirmed PINs. The Monthly Retirement Status Report shows that 236 clients applied for a January 1 retirement date. Three of them were disability retirees, two of whom were approved by TRS’ medical board, and one by the Social Security Administration. There were 111 terminated annuities.
B. Human Resources: TRS Human Resources Director Kim Bold presented the HR Status Report for January 25, 2017. In December 2016, there was one retirement, and no terminations or resignations. Under Miscellaneous Payments, one employee received $200 as part of his Continuous Service Incentive payment, his tenth of 18 payments as provided in Merit Rule 260:25-7-11 and approved by HCM, a division of OMES. Also under Miscellaneous Payments, as provided by OMES/HCM, Merit Rule 260:25-7-27, in December, one-time, performance-based stipends were awarded to 31 employees hired before Nov. 1 2015. These payments were $1,000 for employees with an overall rating of “meets
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standards” and $1,500 for “exceeds standards.” The Oklahoman extended the time on the job posting for TRS’ Business Analyst due to their mistake in linking to TRS’ website.
C. Finance: Employer Reporting Manager Debra Plog presented the Analysis of Employee and Employer Contributions Received Fiscal Year for four months ending November 30, 2016. At the time this report was compiled, two employers’ reports were delinquent. One has submitted his report; the other has not and will be assessed a late fee. The delinquent employer had been warned about the late fee a week before.
TRS Director of Finance and CFO Sam Moore reviewed TRS’ Financial Reports. The Balance Sheet as of December 31, 2016, shows Total Liabilities and Capital Investment at $14.5B, an increase of about $205M from November. At the request of the Board, investment expenses are now tracked separately; they total $25M YTD. The 77.3% decreases in postage, as well as the large differences in Printing and Binding, Investment Consultants, and Auditing Services are due to timing. Claims for Authorized Expenditures were reviewed without discussion.
D. General Counsel: Ms. Ezell reported on some of the issues she has been working on: • In 2004, a statute was passed allowing OU and OSU to have their own alternative retirement
plans. TRS went to the IRS with OU and OSU to get approval of those plans and how they affectTRS. A request for a private letter ruling from the IRS was filed in 2005 and we just signed off onthe final agreement today.
• A hearing before the administrative law judge will be scheduled for later this spring.• A second letter will be going to the five schools that have not filed their end-of-year employment
report that was due November 1.• An issue with how a Career Tech’s state credit was being reported and paid has been resolved by
working with their director and legal counsel.
E. Executive Director: Mr. Spencer presented his Monthly Report from December 14 through January 25, 2017:
• Worked with TRS General Counsel Julie Ezell, CFO Sam Moore and Business Manager DonnaSpurrier to evaluate Actuarial Services RFPs.
• Worked with Sam Moore to produce the Popular Annual Financial Report (PAFR) and theComprehensive Annual Financial Report (CAFR). These were submitted to the GFOA forpossible recognition.
• Details about the February Board Retreat were firmed up and emailed to Trustees and staff.• The Senate President Pro-tem reappointed Vernon Florence to another four-year term to one of
the TRS retiree seats on the Board.• Regarding the external audit: Worked with Sam Moore to review the draft of the GASB 68
report.• Regarding the internal audit: With Julie Ezell, met with Stinnett staff about the nearly-complete
cyber security audit.• Spending lots of time working with proposed legislation that could affect TRS. Details on the
bills were covered in Item 10 of today’s meeting.• By an invitation from Dr. Winters, spoke at a meeting of state Career Tech superintendents.• With some senior staff, looked at more office buildings for either a new home for TRS, or for an
investment. Further evaluation will be done.
ITEM 16 – QUESTIONS AND COMMENTS FROM TRUSTEES: There were none.
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ITEM 17 – NEW BUSINESS (Any matter not known about or which could not have been reasonably foreseen prior to the time of posting. 25 O.S. 2011, §311.): There was no new business.
ITEM 18 – ADJOURNMENT: There being no further business, a motion made by Mr. Gaddis with a second made by Dr. Pope to adjourn the meeting was carried by a unanimous voice vote. Trustees responding were Mr. Florence, Mr. Gaddis, Ms. Harris, Ms. Geiger, Ms. Hughes, Mr. Kinney, Ms. Madsen, Mr. Moore, Mr. Peacher, Dr. Pope, Dr. Winters and Dr. Trennepohl
The meeting was adjourned at 1:04 p.m.
BOARD OF TRUSTEES, TEACHERS’ RETIREMENT SYSTEM OF OKLAHOMA
BY: __________________________________________________________________ Gary Trennepohl, Chairman
ATTEST:
BY: __________________________________________________________________ Judie Harris, Secretary
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56
.21
6.6
41
.63
0.0
00
.00
0.0
01
2/0
1/2
00
8
T
ota
l Pri
vate
Eq
uity
Po
licy
19
.97
11
.72
19
.36
16
.12
29
.61
16
.30
0.7
21
5.8
50
.72
Fra
nkl
in P
ark
Pri
vate
Eq
uity
75
0,5
08
,58
9-1
2.8
5N
/A1
1.9
91
3.7
31
1.0
75
.05
0.0
06
.14
0.0
00
4/0
1/2
01
0
To
tal P
riva
te E
qu
ity P
olic
y1
7.6
91
1.7
21
9.3
61
6.1
22
9.6
11
6.3
00
.72
15
.85
0.7
2
1
91
As
se
t A
llo
ca
tio
n &
Pe
rfo
rma
nc
e
To
tal F
un
d
As
of
Ja
nu
ary
31
, 2
01
7
All
oc
ati
on
Ma
rke
tV
alu
e$
Pe
rfo
rma
nc
e(%
)
Inc
ep
tio
n1
0 Y
R5
YR
3 Y
R1
YR
FY
TD
YT
DQ
TR
MT
HIn
ce
pti
on
Da
te
To
tal M
as
ter
Lim
ite
d P
art
ne
rsh
ips
Co
mp
os
ite
1,0
88
,90
3,5
55
Ch
icka
saw
ML
P4
46
,52
5,5
64
14
.64
N/A
14
.09
3.0
85
3.1
71
5.7
41
.92
14
.45
1.9
20
3/0
1/2
01
1
A
leri
an
ML
P I
nd
ex
3.8
78
.02
2.8
3-4
.48
39
.60
8.1
84
.89
12
.02
4.8
9
AR
I M
LP
24
4,1
05
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16
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N/A
5.1
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50
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12
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3.8
21
2.0
83
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03
/01
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11
A
leri
an
ML
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nd
ex
3.8
78
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39
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84
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12
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9
Cu
shin
g M
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39
8,2
72
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01
0.3
4N
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1.2
15
4.3
41
4.5
74
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16
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1
A
leri
an
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nd
ex
3.8
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39
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84
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12
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9
20
Co
mp
ara
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e P
erf
orm
an
ce
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R
Inc
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tio
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YR
3 Y
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FY
TD
QT
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ce
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on
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te
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po
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nis
tic
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ed
In
co
me
PIM
CO
Bra
vo I
22
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24
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14
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6.3
24
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1.7
00
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5/2
01
1
PIM
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Bra
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I1
1.2
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/AN
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0.5
98
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4.4
00
2/2
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01
4
PIM
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rp O
pp
II
7.4
9N
/AN
/AN
/AN
/A3
.17
09
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16
No
n-C
ore
Re
al
Es
tate
An
the
us
Ca
pita
l-6
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N/A
N/A
0.0
00
.00
0.0
01
1/1
2/2
01
4
Du
ne
13
.42
N/A
N/A
9.8
43
.36
0.0
01
1/0
7/2
01
4
Gre
en
Oa
k R
ea
l Est
ate
2.7
3N
/AN
/A0
.81
1.8
70
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10
/30
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14
L&
B G
old
en
Dri
ller
-0.1
0N
/AN
/A-0
.01
0.0
00
.00
07
/31
/20
14
La
nd
ma
rk R
ea
lty2
4.4
7N
/AN
/A7
.39
1.3
60
.00
12
/22
/20
14
Sta
rwo
od
22
.08
N/A
N/A
17
.19
10
.41
5.2
21
0/2
9/2
01
5
Pri
va
te E
qu
ity
Le
ga
cy P
riva
te E
qu
ity P
ort
folio
10
.86
11
.34
5.9
26
.46
1.4
6-0
.19
10
/10
/20
08
Fra
nkl
in P
ark
Pri
vate
Eq
uity
11
.68
12
.68
12
.36
10
.50
4.4
95
.86
04
/08
/20
10
Co
mp
ara
tiv
e P
erf
orm
an
ce
- IR
R
Pri
va
te In
ve
stm
en
ts
As
of
Ja
nu
ary
31
, 2
01
7
21
Ris
k a
nd
Re
turn
4 Y
ea
rs
Ho
tch
kis
& W
iley L
arg
e C
ap
Va
lue
Sa
wg
rass L
arg
e C
ap
Gro
wth
Ep
och
All
Ca
pA
JO
Mid
Ca
p
Ho
tch
kis
& W
iley M
id C
ap
Va
lue
Fro
ntie
r M
id C
ap
Gro
wth
We
llin
gto
n M
id C
ap
Gro
wth
Co
ve
Str
ee
t S
ma
ll C
ap
Va
lue
Fro
ntie
r S
ma
ll C
ap
Va
lue
Ge
ne
va
Sm
all
Ca
p G
row
thN
eu
me
ier
Po
ma
Sm
all
Va
lue
Sh
ap
iro
Sm
all
Ca
p
Wa
sa
tch
Sm
all
Ca
p G
row
thS
SG
A E
qu
al W
eig
hte
d P
assiv
eN
ort
he
rn T
rust C
ap
We
igh
ted
Pa
ssiv
eT
ota
l D
om
estic E
qu
ity C
om
po
site
To
tal D
om
estic E
qu
ity P
olic
y
9.0
12
.0
15
.0
18
.0
21
.0
Return (%)
9.0
9.6
10
.21
0.8
11
.41
2.0
12
.61
3.2
13
.81
4.4
15
.01
5.6
16
.21
6.8
17
.41
8.0
Ris
k (
Sta
nd
ard
De
via
tio
n %
)
To
tal D
om
estic E
qu
ity P
olic
yT
ota
l D
om
estic E
qu
ity C
om
po
site
No
rth
ern
Tru
st C
ap
We
igh
ted
Pa
ssiv
e
SS
GA
Eq
ua
l W
eig
hte
d P
assiv
e
Wa
sa
tch
Sm
all
Ca
p G
row
th
Sh
ap
iro
Sm
all
Ca
p
Ne
um
eie
r P
om
a S
ma
ll V
alu
e
Ge
ne
va
Sm
all
Ca
p G
row
th
Fro
ntie
r S
ma
ll C
ap
Va
lue
Co
ve
Str
ee
t S
ma
ll C
ap
Va
lue
We
llin
gto
n M
id C
ap
Gro
wth
Fro
ntie
r M
id C
ap
Gro
wth
Ho
tch
kis
& W
iley M
id C
ap
Va
lue
AJO
Mid
Ca
p
Ep
och
All
Ca
pS
aw
gra
ss L
arg
e C
ap
Gro
wth
Ho
tch
kis
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iley L
arg
e C
ap
Va
lue
His
tori
ca
l S
tati
sti
cs
4 Y
ea
rs
Re
turn
Sta
nd
ard
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via
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ow
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ide
Ris
kM
ax
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do
wn
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Do
wn
Ma
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kis
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rge
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p V
alu
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5.9
61
3.3
97
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11
7.9
31
25
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Sa
wg
rass
La
rge
Ca
p G
row
th1
3.8
49
.71
4.6
1-7
.22
89
.60
78
.25
Ep
och
All
Ca
p1
4.2
91
1.7
06
.38
-12
.06
10
2.6
61
04
.91
AJO
Mid
Ca
p1
5.0
71
2.3
56
.81
-15
.66
10
4.9
71
02
.23
Ho
tch
kis
& W
iley
Mid
Ca
p V
alu
e1
5.4
01
6.3
18
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-22
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12
3.7
41
41
.04
Fro
ntie
r M
id C
ap
Gro
wth
13
.23
12
.04
6.7
1-1
4.2
49
6.9
31
00
.27
We
llin
gto
n M
id C
ap
Gro
wth
11
.60
14
.07
8.4
4-1
9.8
11
00
.85
12
3.8
0C
ove
Str
ee
t S
ma
ll C
ap
Va
lue
12
.43
14
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8.1
0-1
3.1
51
06
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12
8.9
7F
ron
tier
Sm
all
Ca
p V
alu
e1
7.9
11
4.9
97
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12
0.2
11
09
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Ge
ne
va S
ma
ll C
ap
Gro
wth
15
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12
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6.7
4-1
1.9
29
4.7
97
0.8
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eu
me
ier
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ma
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all
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lue
17
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13
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6.6
1-9
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10
6.8
88
1.0
5S
ha
pir
o S
ma
ll C
ap
16
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14
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8.4
3-2
2.1
41
25
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13
5.4
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asa
tch
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all
Ca
p G
row
th1
1.4
51
3.4
38
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-16
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89
.02
96
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SS
GA
Eq
ua
l We
igh
ted
Pa
ssiv
e1
4.8
01
0.9
55
.59
-10
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10
1.9
99
9.0
8N
ort
he
rn T
rust
Ca
p W
eig
hte
d P
ass
ive
14
.18
10
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5.2
7-8
.22
97
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94
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To
tal D
om
est
ic E
qu
ity C
om
po
site
14
.52
11
.90
6.4
2-1
3.6
91
05
.96
11
0.7
8
Ris
k R
etu
rn a
nd
Sta
tis
tic
s
Do
me
sti
c E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
2
22
Ris
k a
nd
Re
turn
5 Y
ea
rs
Lo
om
is S
ayle
s C
ore
Plu
sL
ord
Ab
be
tt C
ore
Plu
sM
acka
y S
hie
lds C
ore
Plu
sH
ois
ing
ton
Active
Du
ratio
nL
oo
mis
Sa
yle
s H
igh
Yie
ld
Lo
rd A
bb
ett H
igh
Yie
ldM
acka
y S
hie
lds H
igh
Yie
ldT
ota
l F
ixe
d In
co
me
Co
mp
osite
To
tal F
ixe
d In
co
me
Po
licy
0.0
1.5
3.0
4.5
6.0
7.5
9.0
10
.5
Return (%)
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10
.01
1.0
12
.01
3.0
14
.01
5.0
16
.0R
isk
(S
tan
da
rd D
ev
iati
on
%)
To
tal F
ixe
d In
co
me
Po
licy
To
tal F
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d In
co
me
Co
mp
osite
Ma
cka
y S
hie
lds H
igh
Yie
ld
Lo
rd A
bb
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igh
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ld
Lo
om
is S
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igh
Yie
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Ho
isin
gto
n A
ctive
Du
ratio
n
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cka
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hie
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s
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mis
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s C
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s
His
tori
ca
l S
tati
sti
cs
5 Y
ea
rs
Re
turn
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nd
ard
De
via
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nD
ow
ns
ide
Ris
kM
ax
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mD
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do
wn
Up
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rke
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ap
ture
Do
wn
Ma
rke
tC
ap
ture
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om
is S
ayl
es
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re P
lus
4.5
44
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2.4
2-5
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14
3.1
71
22
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Lo
rd A
bb
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ore
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s3
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2.9
01
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71
13
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87
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Ma
cka
y S
hie
lds
Co
re P
lus
3.6
63
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1.7
7-3
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11
0.4
98
8.7
8
Ho
isin
gto
n A
ctiv
e D
ura
tion
2.4
51
3.4
88
.63
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26
5.7
84
20
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Lo
om
is S
ayl
es
Hig
h Y
ield
8.0
96
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3.6
4-1
1.2
71
87
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81
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Lo
rd A
bb
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igh
Yie
ld8
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5.0
02
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-6.7
41
74
.40
31
.20
Ma
cka
y S
hie
lds
Hig
h Y
ield
7.6
84
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2.3
5-7
.03
16
1.5
74
6.7
6
To
tal F
ixe
d In
com
e C
om
po
site
4.7
73
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2.2
6-4
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14
6.4
01
21
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B
lmb
g. B
arc
. U
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Un
ive
rsa
l In
de
x2
.78
2.8
31
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71
00
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10
0.0
0
Ris
k R
etu
rn a
nd
Sta
tis
tic
s
Fix
ed
In
co
me
As
of
De
ce
mb
er
31
, 2
01
6
23
Ris
k a
nd
Re
turn
5 Y
ea
rs
Ca
use
wa
y In
tern
atio
na
lA
llia
nz In
tern
atio
na
l W
elli
ng
ton
Qu
alit
y G
row
th In
tern
atio
na
lA
RI In
tern
atio
na
l S
ma
ll C
ap
Ep
och
Sm
all
Ca
p In
tern
atio
na
lS
SG
A E
me
rgin
g M
ark
ets
Sm
all
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pW
asa
tch
In
tern
atio
na
l S
ma
ll C
ap
W
elli
ng
ton
In
tern
atio
na
l S
ma
ll C
ap
To
tal In
tern
atio
na
l E
qu
ity C
om
po
site
To
tal In
tern
atio
na
l E
qu
ity P
olic
y
0.0
5.0
10
.0
15
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20
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Return (%)
11
.81
2.0
12
.21
2.4
12
.61
2.8
13
.01
3.2
13
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3.6
13
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4.0
14
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4.4
Ris
k (
Sta
nd
ard
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via
tio
n %
)
To
tal In
tern
atio
na
l E
qu
ity P
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y
To
tal In
tern
atio
na
l E
qu
ity C
om
po
site
We
llin
gto
n In
tern
atio
na
l S
ma
ll C
ap
Wa
sa
tch
In
tern
atio
na
l S
ma
ll C
ap
Ep
och
Sm
all
Ca
p In
tern
atio
na
l
AR
I In
tern
atio
na
l S
ma
ll C
ap
We
llin
gto
n Q
ua
lity G
row
th In
tern
atio
na
l
Alli
an
z In
tern
atio
na
l
Ca
use
wa
y In
tern
atio
na
l
His
tori
ca
l S
tati
sti
cs
5 Y
ea
rs
Re
turn
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nd
ard
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ow
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ide
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ax
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do
wn
Up
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rke
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ture
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wn
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rke
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ap
ture
Ca
use
wa
y In
tern
atio
na
l7
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13
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8.5
4-2
0.5
41
02
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94
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Alli
an
z In
tern
atio
na
l2
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13
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9.6
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8.2
89
6.9
21
19
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We
llin
gto
n Q
ua
lity
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wth
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tern
atio
na
l1
2.5
71
2.0
17
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98
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55
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AR
I In
tern
atio
na
l Sm
all
Ca
p9
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12
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7.5
1-1
8.0
39
6.7
06
9.8
7
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
8.8
61
3.6
08
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99
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79
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SS
GA
Em
erg
ing
Ma
rke
ts S
ma
ll C
ap
N/A
N/A
N/A
N/A
N/A
N/A
Wa
satc
h In
tern
atio
na
l Sm
all
Ca
p1
1.7
41
3.1
97
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91
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50
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We
llin
gto
n In
tern
atio
na
l Sm
all
Ca
p1
3.2
41
2.9
88
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-11
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10
0.6
05
4.4
6
To
tal I
nte
rna
tion
al E
qu
ity C
om
po
site
7.3
21
2.6
78
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97
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86
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M
SC
I A
C W
orl
d e
x U
SA
IM
I In
de
x5
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13
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2-1
9.5
91
00
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10
0.0
0
Ris
k R
etu
rn a
nd
Sta
tis
tic
s
Inte
rna
tio
na
l E
qu
ity
As
of
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31
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26
Ok
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Inve
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De
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be
r 3
1,
20
16
27
Onthecoverofyourstandardquarterlyreport,andonalldocumentswewillbesendingtoyougoingforward,youwillnotice
your
nam
ecomes
beforeours.Thatisnotbyaccident.Everything
fromtheservicesweprovidetohowwearestructured
asan
organizationisdesigned
toensurethatyou,ourclient,comesfirst.
Wetakeourroleasanindependentinstitutionalconsultingfirmandplanfiduciaryveryseriously,andwebelievethisapproachandphilosophy
addsrealvaluetoourclients.To
ensurethattheclientalwayscomesfirstintheserviceequationandthatourfiduciaryresponsibilityisnever
compromised,theimportantprinciplesofindependence,objectivityandtransparencyareembodiedinourmissionandvisionstatementsand
definewhoweareasanorganization.Theyareengrainedinourcultureandcorporatevaluesandusedtoguideouractionseveryday.
Overtheyears,theinvestmentenvironmenthasgrownmorecomplexandwe’veseenourstaffgrow
andourexpertiseandservicesadvanceto
serveourexpandingclientele.To
strengthenbusinesscontinuityandmeettheneedsofourclients,werecentlybeganaprogramtobroaden
employee
ownershipofourfirm.Inherently,as
wethoughtaboutourmission
(Torepresentthesoleinterestofourclientsby
redefining
independence),vision(Tobeatransformationalorganizationviewedastheleaderinourindustry),andthepassionbehindourserviceculture,
wewantedtodosomethingsignificantthatwouldbetterreflectwhoweareasanorganizationandhowwenevercompromiseourclient-first
mentalityandservicephilosophy.
Why
aC
ompa
nyR
ebra
nd?
Aftermorethanadecadeofgrowthandoriginalbrandequity,whywouldacompanyrebrandnow?Thoughclient-firstconsultinghasbeena
cornerstoneofourcompany
sinceitsinception,with
themilestoneoftransitioningmajorityownershipfromourfoundertothefirm’snext
generationofleadership,itbecametheperfectopportunitytoreintroduceourselvestotheworldasAndCo.Wehavealwaysbelievedtheassets
ofourfirm
werethecollectivebodyofindividualsworkingtogethertoserveourclients.Ithasalwaysbeenbiggerthanoneorevenahandfulof
people.W
efeelthisrebrandisabetterreflectionofthisbeliefandconvictionalongwithourmissionandvision.Ourteam
memberscouldwork
atotherplacesbuttheychoosetoworkatAndCobecausetheybelievethisapproachisbetterforclients.Businesswillcontinueasusual,as
theleadershipandteam
youhavecometoknow
andtrustwillnotbeimpactedbythisrebrand.
Why
And
Co?
AsAndCo,wewantyourfirstimpressiontobeourcommitmenttoclient-firstconsulting.Ourpromisetoyouspansfromourveryfoundationup
tothenameonourbuilding.Mostimportantly,thiscompanyrebrandsetsthestageforthefutureofourfirm,andyourplaceinit.AtAndCo,itis
always:
And
Co
Firm
Reb
rand
28
B
road
asse
tcl
ass
retu
rns
wer
em
ixed
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4th
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ter.
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estic
equi
tyin
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sted
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tive
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rman
cefo
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hile
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tyan
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arks
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ter’s
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stm
ent
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ated
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.S.
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ticip
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Res
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)in
tere
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Dec
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ump
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gher
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ittee
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ook
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ays
Inve
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rce:
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etric
s
The
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ajor
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ndex
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r 31
, 201
6
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kts
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xUS
1-Ye
ar P
erfo
rman
ce
29
Sou
rce:
Inve
stm
ent M
etric
s
The
Mar
ket E
nviro
nmen
tD
omes
tic E
quity
Sty
le In
dex
Perf
orm
ance
As o
f Dec
embe
r 31
, 201
6
U
.S.
equi
tyin
dex
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sitiv
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asfo
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Dur
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ter,
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udin
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omes
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ithse
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ldom
estic
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pect
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ump’
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licy
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Whi
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eact
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yta
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pect
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rong
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ter
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year
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year
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ing
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-sty
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-dig
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essi
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.7%
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the
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D
omes
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1-Ye
ar P
erfo
rman
ce -
Rus
sell
Styl
e Se
ries
30
The
Mar
ket E
nviro
nmen
tG
ICS
Sect
or P
erfo
rman
ce &
(Sec
tor W
eigh
t)As
of D
ecem
ber
31, 2
016
Sou
rce:
Mor
ning
star
Dire
ct
La
rge
cap
sect
orpe
rform
ance
span
ned
ara
nge
ofne
arly
25%
durin
gth
e4t
hqu
arte
r,w
ithre
sults
infiv
eof
elev
enec
onom
icse
ctor
sou
tpac
ing
the
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1000
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xre
turn
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eigh
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leve
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stin
gga
ins
fort
hepe
riod.
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ncia
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ere
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arly
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ing
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stin
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sitiv
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ins.
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mal
lca
pse
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ltsw
ere
roug
hly
in-li
new
ithla
rge
caps
for
the
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quar
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with
five
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even
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ll20
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but
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larg
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posi
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ee.
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ilar
tola
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high
eryi
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defe
nsiv
ese
ctor
sla
gged
the
mor
ecy
clic
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cono
mic
ally
sens
itive
sect
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rth
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iling
one-
year
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dth
em
ater
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anci
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indu
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and
ener
gyse
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sted
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cess
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tive
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alth
care
with
are
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ities
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ities
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31
The
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nviro
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ts &
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ly P
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rman
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r the
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& 2
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f Dec
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r 31
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6
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d St
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tr
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form
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orp
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ay In
c B
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spen
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form
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n Te
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book
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form
atio
n Te
chno
logy
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ateB
anco
rp In
c0.
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18.0
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ncia
ls
Top
10 P
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(by
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)To
p 10
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stat
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orp
0.25
%56
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form
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n Te
chno
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c0.
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138.
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roup
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nolo
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no T
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ealth
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are
32
Sou
rce:
MS
CI G
loba
l Ind
ex M
onito
r (R
etur
ns a
re N
et)
A
sth
eU
SD
vers
uslo
cal
curr
ency
retu
rnch
arts
illus
trate
,th
eU
SD
’sst
reng
thw
asa
maj
orhe
adw
ind
for
inte
rnat
iona
lind
expe
rform
ance
durin
gth
e4t
hqu
arte
ras
wel
las
over
the
traili
ngon
e-ye
arpe
riod.
The
prim
ary
fact
orco
ntrib
utin
gto
the
retu
rndi
ffere
ntia
lsin
2016
was
incr
easi
ngdi
verg
ence
inU
.S.m
onet
ary
polic
y(ti
ghte
ning
)rel
ativ
eto
othe
rdev
elop
edco
untri
es(fu
rther
acco
mm
odat
ion)
.W
hile
the
U.S
.gr
owth
pros
pect
ssu
ppor
tre
duce
dm
onet
ary
stim
ulus
,ec
onom
icda
tain
the
Eur
ozon
esu
ppor
tsa
cont
inua
tion
ofm
onet
ary
acco
mm
odat
ion
tobo
lste
rw
hat
has
been
asl
owre
cove
ry.
As
such
,th
eE
urop
ean
Cen
tral
Ban
k(E
CB)
leng
then
edits
quan
titat
ive
easi
ngpr
ogra
m,o
rigin
ally
sche
dule
dto
end
inM
arch
2017
,to
Dec
embe
r201
7.A
lthou
ghth
epr
ogra
mw
asex
tend
ed,t
heE
CB
redu
ced
the
size
ofm
onth
lypu
rcha
ses
from
$80
billi
oneu
ros
to$6
0bi
llion
euro
s.Th
isec
onom
icdi
verg
ence
was
furth
erre
info
rced
afte
rth
eel
ectio
nas
Trum
p’s
pro-
grow
thpo
licie
san
dpr
otec
tioni
stvi
ews
ontra
de,i
fen
acte
d,fa
vora
dditi
onal
US
Dst
reng
th.
Th
e4th
quar
ter’s
US
Dpe
rform
ance
was
nega
tive
for
both
deve
lope
d(-0
.7%
)an
dem
ergi
ng(-4
.2%
)m
arke
ts.
Whi
leem
ergi
ngm
arke
tpe
rform
ance
(-1.
4%)
was
also
nega
tive
inlo
cal
curr
ency
term
sfo
rth
epe
riod,
the
curre
ncy
impa
ctw
asm
ore
pron
ounc
edin
deve
lope
dm
arke
tre
sults
with
the
MS
CI-E
AFE
Inde
x’s
loca
lcu
rren
cyre
turn
of7.
1%re
pres
entin
ga
7.9%
spre
adre
lativ
eto
the
benc
hmar
k’s
US
Dre
turn
s.W
hile
US
Dst
reng
this
also
evid
ent
inth
eon
e-ye
arpe
rform
ance
ofde
velo
ped
mar
kets
(1.0
%U
SDvs
.5.
3%lo
cal),
US
Dem
ergi
ngm
arke
tpe
rform
ance
of11
.2%
mar
gina
llyou
tpac
edth
eem
ergi
ngm
arke
tlo
cal
curre
ncy
retu
rnof
9.7%
.Ja
pane
seeq
uitie
sad
vanc
edco
nsid
erab
lyin
loca
lcu
rrenc
yte
rms
asa
wea
ker
yen
was
view
edas
am
ajor
tailw
ind
toits
expo
rtdr
iven
econ
omy.
The
U.K
.al
sopo
sted
aso
lidqu
arte
rin
loca
lcu
rrenc
yte
rms
onth
eba
ckof
aw
eake
ning
poun
dst
erlin
gan
dco
ntin
ued
stim
ulus
.D
espi
teth
eir
loca
lcur
renc
yre
turn
stre
ngth
,the
US
Dre
turn
sof
both
coun
tries
wer
ene
gativ
efo
rth
equ
arte
rw
ithJa
pan
retu
rnin
g-0
.2%
and
the
U.K
.ret
urni
ng-0
.9%
.
W
hile
the
4thqu
arte
r’sem
ergi
ngm
arke
tres
ults
wer
ene
gativ
ely
impa
cted
byris
ing
yiel
ds,
ast
rong
erU
SD,
and
fear
ssu
rrou
ndin
gfu
ture
U.S
.tra
dean
dfo
reig
npo
licy,
one-
year
perfo
rman
cein
emer
ging
mar
kets
was
mor
eth
ando
uble
the
retu
rns
post
edby
deve
lope
dm
arke
ts.A
lthou
ghon
e-ye
arof
outp
erfo
rman
cedo
esno
trep
rese
nta
trend
,em
ergi
ngm
arke
tinv
esto
rsar
eho
ping
for
aco
ntin
uanc
eof
2016
’sem
ergi
ngm
arke
tpe
rform
ance
surg
eaf
ter
seve
ral
year
sof
lagg
ing
resu
ltsre
lativ
eto
dom
estic
and
deve
lope
din
tern
atio
nale
quity
mar
kets
.
The
Mar
ket E
nviro
nmen
tIn
tern
atio
nal a
nd R
egio
nal M
arke
t Ind
ex P
erfo
rman
ce (C
ount
ry C
ount
)As
of D
ecem
ber
31, 2
016
1.2%
-3.1
%
3.7%
-1.4
%
10.2
%
5.3%
7.1%
6.9%
4.9%
-0.9
%
-6.1
%
1.8%
-4.2
%
-1.0
%
-0.5
%
-0.7
%
-0.4
%
-1.3
%
-8.0
%-6
.0%
-4.0
%-2
.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0
%12
.0%
EM L
atin
Am
er (5
)
EM A
sia
(8)
EM E
MEA
(10)
Emer
ging
Mkt
(23)
Paci
fic (5
)
Euro
pe &
ME
(16)
EAFE
(21)
WO
RLD
x U
S (2
2)
AC W
orld
x U
S (4
5)
Qua
rter
Per
form
ance
US
DLo
cal C
urre
ncy
24.3
%
6.9%
12.2
%
9.7%
2.3%
6.8%
5.3%6.
5%7.0%
31.0
%
6.1%
19.9
%
11.2
%
4.2%
-0.7
%
1.0%
2.8%
4.5%
-5.0
%0.
0%5.
0%10
.0%
15.0
%20
.0%
25.0
%30
.0%
35.0
%
EM L
atin
Am
er (5
)
EM A
sia
(8)
EM E
MEA
(10)
Emer
ging
Mkt
(23)
Paci
fic (5
)
Euro
pe &
ME
(16)
EAFE
(21)
WO
RLD
x U
S (2
2)
AC W
orld
x U
S (4
5)
1-Ye
ar P
erfo
rman
ceU
SD
Loca
l Cur
renc
y
33
The
Mar
ket E
nviro
nmen
tU
.S. D
olla
r Int
erna
tiona
l Ind
ex A
ttrib
utio
n &
Cou
ntry
Det
ail
As o
f Dec
embe
r 31
, 201
6
Sou
rce:
MS
CI G
loba
l Ind
ex M
onito
r (R
etur
ns a
re N
et in
US
D)
MSC
I-EAF
EM
SCI-A
CW
IxU
SQ
uart
er1-
Year
Cou
ntry
Wei
ght
Wei
ght
Ret
urn
Ret
urn
Japa
n24
.1%
17.0
%-0
.2%
2.4%
Uni
ted
Kin
gdom
18.3
%12
.9%
-0.9
%-0
.1%
Fran
ce10
.2%
7.2%
2.9%
4.9%
Ger
man
y9.
3%6.
5%1.
5%2.
8%S
witz
erla
nd8.
7%6.
1%-3
.9%
-4.9
%A
ustra
lia7.
4%5.
2%0.
7%11
.5%
Net
herla
nds
3.3%
2.3%
-2.1
%4.
8%H
ong
Kon
g3.
3%2.
3%-9
.0%
2.3%
Spa
in3.
1%2.
2%2.
2%-1
.0%
Sw
eden
2.8%
2.0%
-0.8
%0.
6%Ita
ly2.
1%1.
5%10
.8%
-10.
5%D
enm
ark
1.7%
1.2%
-8.7
%-1
5.8%
Sin
gapo
re1.
2%0.
9%-3
.6%
1.4%
Bel
gium
1.2%
0.8%
-11.
8%-7
.6%
Finl
and
1.0%
0.7%
-4.4
%-4
.7%
Isra
el0.
7%0.
5%-1
1.3%
-24.
9%N
orw
ay0.
7%0.
5%2.
4%13
.3%
Irela
nd0.
5%0.
3%0.
1%-7
.1%
Aus
tria
0.2%
0.1%
6.5%
11.3
%N
ew Z
eala
nd0.
2%0.
1%-1
0.9%
18.4
%P
ortu
gal
0.2%
0.1%
-2.9
%3.
6%To
tal E
AFE
Cou
ntrie
s10
0.0%
70.3
%-0
.7%
1.0%
Can
ada
7.1%
3.3%
24.6
%To
tal D
evel
oped
Cou
ntrie
s77
.3%
-0.4
%2.
8%C
hina
6.0%
-7.1
%0.
9%K
orea
3.3%
-5.6
%8.
8%Ta
iwan
2.8%
-2.2
%18
.5%
Indi
a1.
9%-8
.0%
-1.4
%B
razi
l1.
7%2.
1%66
.2%
Sou
th A
frica
1.6%
-4.1
%17
.9%
Rus
sia
1.0%
18.6
%54
.8%
Mex
ico
0.8%
-7.9
%-9
.2%
Indo
nesi
a0.
6%-7
.8%
17.0
%M
alay
sia
0.6%
-8.4
%-3
.9%
Thai
land
0.5%
-1.8
%26
.6%
Phi
lippi
nes
0.3%
-12.
8%-6
.6%
Chi
le0.
3%2.
2%15
.6%
Pol
and
0.3%
3.4%
0.1%
Turk
ey0.
2%-1
3.7%
-8.5
%Q
atar
0.2%
0.7%
6.3%
Uni
ted
Ara
b E
mira
tes
0.2%
-1.5
%13
.6%
Col
ombi
a0.
1%-2
.3%
26.5
%P
eru
0.1%
2.5%
55.6
%G
reec
e0.
1%15
.3%
-12.
1%H
unga
ry0.
1%9.
3%35
.4%
Cze
ch R
epub
lic0.
0%-3
.4%
-5.0
%E
gypt
0.0%
-23.
3%-1
1.5%
Tota
l Em
ergi
ng C
ount
ries
22.7
%-4
.2%
11.2
%To
tal
ACW
IxU
S C
ount
ries
100.
0%-1
.3%
4.5%
MSC
I -EA
FESe
ctor
Wei
ght
Qua
rter
Ret
urn
1-Ye
ar R
etur
nC
onsu
mer
Dis
cret
iona
ry12
.5%
1.6%
-1.3
%
Con
sum
er S
tapl
es11
.2%
-10.
3%-2
.8%
Ene
rgy
5.5%
10.4
%26
.8%
Fina
ncia
ls21
.2%
9.5%
-1.7
%
Hea
lth C
are
10.7
%-7
.8%
-11.
8%
Indu
stria
ls14
.0%
-1.9
%6.
7%
Info
rmat
ion
Tech
nolo
gy5.
5%-3
.2%
3.6%
Mat
eria
ls7.
9%3.
4%24
.3%
Rea
l Est
ate
3.7%
-7.4
%2.
6%
Tele
com
mun
icat
ion
Ser
vice
s4.
5%-6
.9%
-7.3
%
Util
ities
3.4%
-7.4
%-5
.5%
Tota
l10
0.0%
-0.7
%1.
0%
MSC
I -AC
WIx
US
Sect
or W
eigh
tQ
uart
er R
etur
n1-
Year
Ret
urn
Con
sum
er D
iscr
etio
nary
11.5
%-0
.9%
-0.6
%
Con
sum
er S
tapl
es9.
8%-1
0.1%
-1.9
%
Ene
rgy
7.3%
8.3%
31.3
%
Fina
ncia
ls23
.4%
6.8%
4.0%
Hea
lth C
are
8.1%
-8.1
%-1
3.1%
Indu
stria
ls11
.7%
-2.2
%6.
3%
Info
rmat
ion
Tech
nolo
gy9.
3%-5
.0%
10.7
%
Mat
eria
ls8.
0%2.
6%27
.6%
Rea
l Est
ate
3.3%
-7.9
%1.
4%
Tele
com
mun
icat
ion
Ser
vice
s4.
7%-6
.7%
-4.1
%
Util
ities
3.2%
-7.2
%-3
.3%
Tota
l10
0.0%
-1.3
%4.
5%
MSC
I -Em
ergi
ng M
ktSe
ctor
Wei
ght
Qua
rter
Ret
urn
1-Ye
ar R
etur
nC
onsu
mer
Dis
cret
iona
ry10
.3%
-9.5
%0.
9%
Con
sum
er S
tapl
es7.
2%-1
0.5%
0.4%
Ene
rgy
7.9%
8.0%
36.5
%
Fina
ncia
ls24
.4%
-0.7
%15
.0%
Hea
lth C
are
2.5%
-9.6
%-7
.5%
Indu
stria
ls5.
8%-6
.2%
-1.9
%
Info
rmat
ion
Tech
nolo
gy23
.3%
-6.3
%16
.8%
Mat
eria
ls7.
4%4.
2%31
.4%
Rea
l Est
ate
2.6%
-10.
5%-1
.8%
Tele
com
mun
icat
ion
Ser
vice
s5.
9%-6
.2%
2.0%
Util
ities
2.9%
-6.8
%3.
2%
Tota
l10
0.0%
-4.2
%11
.2%
34
Sou
rce:
Bar
clay
s C
apita
l Liv
e
The
Mar
ket E
nviro
nmen
tD
omes
tic B
ond
Sect
or &
Bro
ad/G
loba
l Bon
d M
arke
t Per
form
ance
(Dur
atio
n)As
of D
ecem
ber
31, 2
016
A
fter
defy
ing
logi
can
dm
arke
tex
pect
atio
nsw
ithso
lidpo
sitiv
ere
sults
for
mos
tof
2016
,fix
edin
com
ebe
nchm
arks
fell
acro
ssva
rious
sect
ors
and
qual
ityse
gmen
tsdu
ring
the
4th
quar
ter
asth
ere
ality
ofhi
gher
inte
rest
rate
san
din
flatio
nex
pect
atio
nsex
erte
dth
eir
pow
erfu
lim
pact
onyi
elds
.O
nth
ein
tere
stra
tefro
nt,
mar
ket
rate
sro
seth
roug
hth
equ
arte
ras
inve
stor
spr
epar
edfo
ra
tele
grap
hed,
and
ultim
atel
yre
aliz
ed,i
nter
estr
ate
incr
ease
of25
basi
spo
ints
(bps
)by
the
Fed.
The
Dec
embe
rinc
reas
ew
assu
ppor
ted
byco
ntin
ued
impr
ovem
ent
inth
eU
.S.
econ
omy,
and
repr
esen
ted
the
sole
Fed
rate
incr
ease
for
2016
.O
nth
ein
flatio
nfro
nt,
Don
ald
Trum
p’s
vict
ory
inth
eU
.S.p
resi
dent
iale
lect
ion
also
play
eda
role
inth
equ
arte
r’sne
gativ
efix
edin
com
ere
sults
asm
arke
texp
ecta
tions
afte
rth
evi
ctor
ysh
ifted
sent
imen
tto
war
dpo
tent
ially
high
erin
flatio
nan
dec
onom
icgr
owth
.
Lo
okin
gth
roug
hth
equ
ality
lens
,eac
hof
the
fixed
inco
me
qual
ityse
gmen
tbe
nchm
arks
(with
the
exce
ptio
nof
high
yiel
d)fin
ishe
dth
e4t
hqu
arte
rdow
nro
ughl
y-3
%.
The
high
yiel
d(lo
wer
qual
ity)b
ench
mar
kw
asth
eon
lyin
dex
topo
sta
posi
tive
resu
ltfo
rth
equ
arte
rw
itha
retu
rnof
1.8%
.Th
ehi
ghyi
eld
inde
xbe
nefit
edfro
mits
low
erdu
ratio
n(le
ssin
tere
stra
tese
nsiti
vity
)as
wel
las
ast
eady
com
pres
sion
incr
edit
spre
ads
that
offs
etth
eim
pact
ofge
nera
llyhi
gher
mar
kety
ield
s.E
xten
ding
the
com
paris
onto
the
one-
year
perio
d,th
equ
ality
benc
hmar
ksal
lpo
sted
posi
tive
resu
ltsw
ithan
nual
retu
rns
disp
layi
ngan
inve
rse
rela
tions
hip
with
thei
rqua
lity.
E
xam
inin
gre
sults
ona
sect
orba
sis
show
sth
eno
min
alTr
easu
ryse
ctor
feel
ing
the
larg
esti
mpa
ctfro
mth
eyi
eld
curv
esh
iftw
itha
4th
quar
terr
etur
nof
-3.8
%.
The
low
er-d
urat
ion
TIP
Sin
dex
retu
rned
-2.4
%fo
rth
equ
arte
r.Th
em
ortg
age
sect
orpo
sted
the
quar
ter’s
best
rela
tive
resu
ltw
itha
retu
rnof
-2.0
%be
nefit
ing
from
itslo
wer
dura
tion.
Giv
enth
epr
evio
usly
men
tione
dne
gativ
eim
pact
ofU
SD
stre
ngth
onfo
reig
nin
vest
men
ts,
the
4th
quar
ter
was
apa
rticu
larly
diffi
cult
quar
ter
for
glob
alfix
edin
com
em
arke
tsw
ithth
eG
loba
lAgg
rega
teex
-U.S
.ind
exre
turn
ing
-10.
3%.
Des
pite
the
4th
quar
ter’s
nega
tive
inde
xre
sults
,eac
hse
ctor
and
glob
albe
nchm
ark
post
edpo
sitiv
ere
sults
fort
hetra
iling
one-
year
perio
d.
Th
eFe
dst
ated
that
futu
rera
tein
crea
ses
will
beim
plem
ente
dat
am
easu
red
pace
and
will
beba
sed
onan
ongo
ing
asse
ssm
ent
ofcu
rrent
econ
omic
data
.H
owev
er,
futu
repo
licy
actio
nby
the
new
Trum
pA
dmin
istra
tion
and
glob
alec
onom
icde
velo
pmen
tsw
illlik
ely
impa
ctth
epa
ceof
futu
rein
tere
stra
tein
crea
ses
asw
ell.
-6.7
%
-10.
3%
-2.0
%
-3.0
%-2.4
%
-2.8
%
-2.0
%
-3.8
%
1.8%
-2.7
%
-3.2
%
-3.1
%
-3.0
%
-12.
0%-1
0.0%
-8.0
%-6
.0%
-4.0
%-2
.0%
0.0%
2.0%
Mul
tiver
se (6
.7)
Glo
bal A
gg x
US
(7.8
)
Inte
rmed
iate
Agg
(4.3
)
Aggr
egat
e (5
.9)
U.S
. TIP
S (4
.9)
U.S
. Cor
pora
te IG
(7.3
)
U.S
. Mor
tgag
e (4
.6)
U.S
. Tre
asur
y (6
.1)
U.S
. Hig
h Yi
eld
(4.1
)
Baa
(7.3
)
A (7
.5)
AA (6
.2)
AAA
(5.4
)
Qua
rter
Per
form
ance
2.8%
1.5%
2.0%
2.6%
4.7%
6.1%
1.7%
1.0%
17.1
%7.
9%
4.7%
3.1%
1.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0
%12
.0%
14.0
%16
.0%
18.0
%
Mul
tiver
se (6
.7)
Glo
bal A
gg x
US
(7.8
)
Inte
rmed
iate
Agg
(4.3
)
Aggr
egat
e (5
.9)
U.S
. TIP
S (4
.9)
U.S
. Cor
pora
te IG
(7.3
)
U.S
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tgag
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6.7
42
1.3
12
1.3
18
.83
2.8
0
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
44
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal In
tern
ati
on
al
Eq
uit
y C
om
po
sit
e1
.90
7.3
2-1
.54
-0.8
5-0
.85
-2.8
01
.87
T
ota
l In
tern
atio
na
l Eq
uity
Po
licy
1.6
95
.82
-1.0
04
.91
4.9
1-1
.52
2.5
3
To
tal In
tern
ati
on
al
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
N/A
7.6
6-1
.66
0.5
80
.58
-1.4
72
.21
T
ota
l In
tern
atio
na
l La
rge
Ca
p E
qu
ity P
olic
y1
.69
5.8
2-1
.00
4.9
14
.91
-1.5
22
.53
To
tal In
tern
ati
on
al
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
N/A
10
.55
-0.0
3-2
.73
-2.7
3-4
.69
1.3
8
T
ota
l In
tern
atio
na
l Sm
all
Ca
p E
qu
ity P
olic
y3
.26
8.1
21
.12
4.2
94
.29
-3.4
72
.15
To
tal F
ixe
d I
nc
om
e C
om
po
sit
e7
.17
4.7
74
.50
7.7
77
.77
-2.5
30
.67
T
ota
l Fix
ed
In
com
e P
olic
y4
.38
2.3
13
.16
3.0
43
.04
-2.6
10
.30
To
tal F
ixe
d I
nc
om
e C
ore
Co
mp
os
ite
6.1
33
.75
4.1
04
.98
4.9
8-4
.10
0.2
6
T
ota
l Fix
ed
In
com
e P
olic
y4
.38
2.3
13
.16
3.0
43
.04
-2.6
10
.30
To
tal F
ixe
d I
nc
om
e C
ore
Plu
s C
om
po
sit
e6
.18
4.0
33
.34
5.8
15
.81
-2.1
60
.40
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
2.3
13
.16
3.0
43
.04
-2.6
10
.30
To
tal F
ixe
d I
nc
om
e A
cti
ve
Du
rati
on
Co
mp
os
ite
6.8
04
.29
9.2
70
.30
0.3
0-1
4.2
5-0
.59
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
52
.05
2.7
21
.73
1.7
3-3
.84
-0.1
1
To
tal F
ixe
d I
nc
om
e H
igh
Yie
ld C
om
po
sit
eN
/A8
.27
5.5
51
5.6
81
5.6
81
.77
1.7
7
T
ota
l Fix
ed
In
com
e H
igh
Yie
ld P
olic
y7
.34
7.3
54
.72
17
.49
17
.49
1.8
81
.97
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
45
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal A
lte
rna
tiv
es
Co
mp
os
ite
N/A
N/A
N/A
16
.45
16
.45
4.0
64
.26
To
tal O
pp
ort
un
isti
c F
ixe
d I
nc
om
e C
om
po
sit
eN
/AN
/AN
/A1
2.1
31
2.1
34
.55
4.5
5
T
ota
l Op
po
rtu
nis
tic F
ixe
d I
nco
me
Po
licy
4.3
82
.31
3.1
63
.04
3.0
4-2
.61
0.3
0
To
tal R
ea
l E
sta
te C
om
po
sit
eN
/AN
/AN
/A8
.75
8.7
52
.04
2.0
4
T
ota
l Re
al E
sta
te P
olic
y5
.62
12
.20
12
.21
9.2
79
.27
2.1
62
.16
To
tal C
ore
Re
al
Es
tate
Co
mp
os
ite
N/A
10
.61
11
.43
9.3
69
.36
2.3
52
.35
T
ota
l Co
re R
ea
l Est
ate
Po
licy
5.6
21
2.2
01
2.2
19
.27
9.2
72
.16
2.1
6
To
tal N
on
-Co
re R
ea
l E
sta
te C
om
po
sit
eN
/AN
/AN
/A6
.51
6.5
11
.02
1.0
2
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
To
tal P
riv
ate
Eq
uit
y C
om
po
sit
eN
/AN
/AN
/A1
0.8
61
0.8
65
.83
5.8
3
T
ota
l Pri
vate
Eq
uity
Po
licy
11
.89
20
.41
14
.72
22
.15
22
.15
9.9
13
.14
To
tal M
as
ter
Lim
ite
d P
art
ne
rsh
ips
Co
mp
os
ite
N/A
8.9
90
.51
26
.63
26
.63
4.8
25
.36
T
ota
l ML
P P
olic
y8
.04
2.2
5-5
.80
18
.31
18
.31
2.0
44
.39
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
46
Co
mp
ara
tiv
e P
erf
orm
an
ce
Tra
ilin
g R
etu
rns
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal F
un
d6
.66
(2)
10
.54
(3)
5.0
6(2
9)
11
.30
(1)
11
.30
(1)
2.2
0(6
)1
.96
(2)
T
ota
l Fu
nd
Po
licy
6.3
4(8
)9
.66
(12
)4
.86
(39
)1
0.9
0(1
)1
0.9
0(1
)1
.72
(12
)N
/A
8
.00
% A
nn
ua
lize
d R
etu
rns
8.0
0(1
)8
.00
(71
)8
.00
(1)
8.0
0(3
2)
8.0
0(3
2)
1.9
4(8
)0
.64
(94
)
A
ll P
ub
lic P
lan
s-T
ota
l Fu
nd
Me
dia
n5
.45
8.5
14
.61
7.2
67
.26
0.6
91
.26
To
tal F
un
d C
om
po
sit
e N
T6
.77
10
.76
5.4
11
1.5
41
1.5
42
.13
1.7
1
To
tal E
qu
ity
Co
mp
os
ite
6.0
81
3.2
15
.11
10
.89
10
.89
3.3
51
.61
T
ota
l Eq
uity
Po
licy
7.0
71
4.6
78
.43
12
.74
12
.74
4.2
11
.95
To
tal D
om
es
tic
Eq
uit
y C
om
po
sit
e7
.44
(60
)1
5.0
7(4
0)
7.3
1(5
7)
15
.64
(40
)1
5.6
4(4
0)
5.7
9(4
2)
1.5
2(6
1)
T
ota
l Do
me
stic
Eq
uity
Po
licy
6.9
9(7
3)
14
.75
(46
)9
.01
(28
)1
2.3
8(5
4)
12
.38
(54
)4
.21
(56
)1
.95
(46
)
I
M U
.S. E
qu
ity (
SA
+C
F)
Me
dia
n7
.85
14
.62
7.8
21
2.8
61
2.8
64
.76
1.8
4
To
tal D
om
es
tic
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
N/A
N/A
8.2
1(5
2)
13
.14
(29
)1
3.1
4(2
9)
5.3
0(3
0)
1.6
4(5
5)
T
ota
l Do
me
stic
La
rge
Ca
p E
qu
ity P
olic
y7
.08
(59
)1
4.6
9(4
2)
8.5
9(4
1)
12
.05
(39
)1
2.0
5(3
9)
3.8
3(5
2)
1.8
8(4
3)
I
M U
.S. L
arg
e C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
7.2
81
4.5
28
.28
10
.98
10
.98
3.8
51
.72
To
tal D
om
es
tic
La
rge
Ca
p A
cti
ve
Eq
uit
y C
om
po
sit
e6
.76
(70
)1
5.5
0(2
2)
8.0
7(5
5)
13
.49
(28
)1
3.4
9(2
8)
5.9
5(2
5)
1.6
5(5
5)
T
ota
l Do
me
stic
La
rge
Ca
p E
qu
ity A
ctiv
e P
olic
y7
.08
(59
)1
4.6
9(4
2)
8.5
9(4
1)
12
.05
(39
)1
2.0
5(3
9)
3.8
3(5
2)
1.8
8(4
3)
I
M U
.S. L
arg
e C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
7.2
81
4.5
28
.28
10
.98
10
.98
3.8
51
.72
Ho
tch
kis
& W
iley
La
rge
Ca
p V
alu
e5
.59
(96
)1
6.6
9(1
0)
8.6
9(4
5)
20
.67
(1)
20
.67
(1)
10
.36
(1)
2.0
8(3
0)
R
uss
ell
10
00
Va
lue
In
de
x5
.72
(96
)1
4.8
0(4
1)
8.5
9(4
7)
17
.34
(5)
17
.34
(5)
6.6
8(9
)2
.50
(11
)
I
M U
.S. L
arg
e C
ap
Co
re E
qu
ity (
SA
+C
F)
Me
dia
n7
.29
14
.56
8.4
51
0.5
11
0.5
13
.84
1.8
2
Sa
wg
rass
La
rge
Ca
p G
row
th7
.83
(32
)1
3.9
4(6
4)
7.4
3(7
0)
6.5
1(8
7)
6.5
1(8
7)
1.5
4(8
6)
1.1
9(8
2)
R
uss
ell
10
00
Gro
wth
In
de
x8
.33
(18
)1
4.5
0(5
2)
8.5
5(4
7)
7.0
8(8
5)
7.0
8(8
5)
1.0
1(9
1)
1.2
4(8
2)
I
M U
.S. L
arg
e C
ap
Co
re E
qu
ity (
SA
+C
F)
Me
dia
n7
.29
14
.56
8.4
51
0.5
11
0.5
13
.84
1.8
2
To
tal D
om
es
tic
La
rge
Ca
p E
qu
ity
Pa
ss
ive
Co
mp
os
ite
N/A
N/A
8.4
7(4
5)
12
.19
(38
)1
2.1
9(3
8)
3.8
3(5
2)
1.6
1(5
5)
T
ota
l Do
me
stic
La
rge
Ca
p E
qu
ity P
ass
ive
Po
licy
7.7
1(3
7)
15
.11
(31
)8
.81
(35
)1
3.3
8(2
8)
13
.38
(28
)3
.83
(52
)1
.55
(58
)
I
M U
.S. L
arg
e C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
7.2
81
4.5
28
.28
10
.98
10
.98
3.8
51
.72
No
rth
ern
Tru
st C
ap
We
igh
ted
Pa
ssiv
eN
/AN
/A8
.81
(43
)1
1.0
4(4
4)
11
.04
(44
)3
.85
(50
)1
.99
(36
)
S
&P
50
0 In
de
x6
.95
(68
)1
4.6
6(4
7)
8.8
7(4
1)
11
.96
(34
)1
1.9
6(3
4)
3.8
2(5
2)
1.9
8(3
7)
I
M U
.S. L
arg
e C
ap
Co
re E
qu
ity (
SA
+C
F)
Me
dia
n7
.29
14
.56
8.4
51
0.5
11
0.5
13
.84
1.8
2
SS
GA
Eq
ua
l We
igh
ted
Pa
ssiv
eN
/AN
/A8
.57
(47
)1
4.7
8(1
1)
14
.78
(11
)3
.81
(54
)1
.11
(84
)
S
&P
50
0 E
qu
al W
eig
hte
d8
.42
(15
)1
5.5
4(2
5)
8.7
3(4
4)
14
.80
(11
)1
4.8
0(1
1)
3.8
3(5
1)
1.1
2(8
4)
IM U
.S.
La
rge
Ca
p C
ore
Eq
uity
(S
A+
CF
) M
ed
ian
7.2
91
4.5
68
.45
10
.51
10
.51
3.8
41
.82
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
47
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal D
om
es
tic
All
Ca
p E
qu
ity
Co
mp
os
ite
6.4
8(8
2)
12
.64
(70
)5
.97
(63
)1
0.0
8(5
7)
10
.08
(57
)5
.30
(41
)1
.52
(51
)
T
ota
l Do
me
stic
All
Ca
p E
qu
ity P
olic
y7
.07
(68
)1
4.6
7(3
9)
8.4
3(2
4)
12
.74
(48
)1
2.7
4(4
8)
4.2
1(5
1)
1.9
5(3
6)
I
M U
.S. A
ll C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
7.5
91
3.7
57
.04
12
.29
12
.29
4.2
51
.52
Ep
och
All
Ca
p7
.64
(41
)1
3.8
3(6
4)
7.4
8(5
5)
9.9
9(6
1)
9.9
9(6
1)
5.3
0(3
8)
1.5
2(6
9)
R
uss
ell
30
00
In
de
x7
.07
(80
)1
4.6
7(5
4)
8.4
3(2
5)
12
.74
(46
)1
2.7
4(4
6)
4.2
1(5
7)
1.9
5(5
4)
I
M U
.S. A
ll C
ap
Co
re E
qu
ity (
SA
+C
F)
Me
dia
n7
.36
14
.84
7.6
51
1.6
31
1.6
34
.55
1.9
7
To
tal D
om
es
tic
Mid
Ca
p E
qu
ity
Co
mp
os
ite
8.3
6(6
3)
14
.82
(47
)5
.77
(64
)1
1.6
6(5
2)
11
.66
(52
)4
.72
(45
)1
.49
(42
)
T
ota
l Do
me
stic
Mid
Ca
p E
qu
ity P
olic
y7
.86
(77
)1
4.7
2(5
0)
7.9
2(4
1)
13
.80
(43
)1
3.8
0(4
3)
3.2
1(5
3)
1.1
4(5
0)
I
M U
.S. M
id C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.7
61
4.6
97
.13
12
.12
12
.12
3.9
01
.12
AJO
Mid
Ca
p8
.51
(57
)1
5.4
7(3
3)
7.2
4(4
8)
12
.55
(48
)1
2.5
5(4
8)
6.7
6(2
8)
2.3
4(1
2)
R
uss
ell
Mid
cap
In
de
x7
.86
(77
)1
4.7
2(5
0)
7.9
2(4
1)
13
.80
(43
)1
3.8
0(4
3)
3.2
1(5
3)
1.1
4(5
0)
I
M U
.S. M
id C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.7
61
4.6
97
.13
12
.12
12
.12
3.9
01
.12
Fro
ntie
r M
id C
ap
Gro
wth
9.8
1(2
2)
14
.22
(57
)7
.01
(52
)5
.95
(74
)5
.95
(74
)-0
.09
(83
)0
.48
(64
)
R
uss
ell
Mid
cap
Gro
wth
In
de
x7
.83
(78
)1
3.5
1(6
3)
6.2
3(6
0)
7.3
3(6
8)
7.3
3(6
8)
0.4
6(7
7)
0.3
5(7
0)
I
M U
.S. M
id C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.7
61
4.6
97
.13
12
.12
12
.12
3.9
01
.12
Ho
tch
kis
& W
iley
Mid
Ca
p V
alu
e8
.68
(52
)1
8.5
7(1
)7
.09
(52
)2
2.2
8(8
)2
2.2
8(8
)1
2.4
8(1
)3
.21
(2)
R
uss
ell
Mid
cap
Va
lue
In
de
x7
.59
(86
)1
5.7
0(2
9)
9.4
5(2
0)
20
.00
(23
)2
0.0
0(2
3)
5.5
2(3
7)
1.7
8(3
2)
I
M U
.S. M
id C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.7
61
4.6
97
.13
12
.12
12
.12
3.9
01
.12
We
llin
gto
n M
id C
ap
Gro
wth
6.0
3(9
7)
10
.45
(93
)1
.07
(97
)5
.71
(76
)5
.71
(76
)-0
.78
(87
)-0
.47
(86
)
R
uss
ell
Mid
cap
Gro
wth
In
de
x7
.83
(78
)1
3.5
1(6
3)
6.2
3(6
0)
7.3
3(6
8)
7.3
3(6
8)
0.4
6(7
7)
0.3
5(7
0)
I
M U
.S. M
id C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.7
61
4.6
97
.13
12
.12
12
.12
3.9
01
.12
To
tal D
om
es
tic
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
8.0
9(5
9)
16
.61
(30
)8
.37
(43
)2
6.1
8(2
6)
26
.18
(26
)7
.82
(59
)1
.45
(75
)
T
ota
l Do
me
stic
Sm
all
Ca
p P
olic
y7
.07
(81
)1
4.4
6(6
7)
6.7
4(6
1)
21
.31
(47
)2
1.3
1(4
7)
8.8
3(5
3)
2.8
0(4
9)
I
M U
.S. S
ma
ll C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.4
81
5.4
57
.79
20
.88
20
.88
9.1
12
.77
Co
ve S
tre
et S
ma
ll C
ap
Va
lue
N/A
N/A
5.2
7(8
3)
20
.69
(83
)2
0.6
9(8
3)
5.0
6(9
7)
1.7
2(9
0)
R
uss
ell
20
00
Va
lue
In
de
x6
.26
(94
)1
5.0
7(6
9)
8.3
1(5
6)
31
.74
(16
)3
1.7
4(1
6)
14
.07
(27
)4
.13
(35
)
I
M U
.S. S
ma
ll C
ap
Va
lue
Eq
uity
(S
A+
CF
) M
ed
ian
8.6
11
5.9
58
.76
26
.14
26
.14
12
.19
3.6
1
Ge
ne
va S
ma
ll C
ap
Gro
wth
N/A
N/A
6.9
8(2
8)
11
.81
(47
)1
1.8
1(4
7)
3.7
9(4
2)
1.0
1(4
3)
R
uss
ell
20
00
Gro
wth
In
de
x7
.76
(63
)1
3.7
4(5
2)
5.0
5(4
6)
11
.32
(50
)1
1.3
2(5
0)
3.5
7(4
3)
1.3
6(3
7)
I
M U
.S. S
ma
ll C
ap
Gro
wth
Eq
uity
(S
A+
CF
) M
ed
ian
8.4
81
3.8
74
.65
11
.20
11
.20
3.1
90
.81
Fro
ntie
r S
ma
ll C
ap
Va
lue
N/A
N/A
11
.62
(9)
31
.56
(16
)3
1.5
6(1
6)
13
.55
(34
)3
.55
(52
)
R
uss
ell
20
00
Va
lue
In
de
x6
.26
(94
)1
5.0
7(6
9)
8.3
1(5
6)
31
.74
(16
)3
1.7
4(1
6)
14
.07
(27
)4
.13
(35
)
IM U
.S. S
ma
ll C
ap
Va
lue
Eq
uity
(S
A+
CF
) M
ed
ian
8.6
11
5.9
58
.76
26
.14
26
.14
12
.19
3.6
1
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
48
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
Ne
um
eie
r P
om
a S
ma
ll V
alu
eN
/AN
/A1
1.8
2(7
)2
1.3
5(7
7)
21
.35
(77
)9
.31
(79
)3
.60
(51
)
R
uss
ell
20
00
Va
lue
In
de
x6
.26
(94
)1
5.0
7(6
9)
8.3
1(5
6)
31
.74
(16
)3
1.7
4(1
6)
14
.07
(27
)4
.13
(35
)
I
M U
.S. S
ma
ll C
ap
Va
lue
Eq
uity
(S
A+
CF
) M
ed
ian
8.6
11
5.9
58
.76
26
.14
26
.14
12
.19
3.6
1
Sh
ap
iro
Sm
all
Ca
p1
0.1
9(1
4)
16
.95
(22
)8
.23
(45
)3
6.8
0(2
)3
6.8
0(2
)8
.91
(52
)0
.67
(85
)
R
uss
ell
20
00
In
de
x7
.07
(81
)1
4.4
6(6
7)
6.7
4(6
1)
21
.31
(47
)2
1.3
1(4
7)
8.8
3(5
3)
2.8
0(4
9)
I
M U
.S. S
ma
ll C
ap
Eq
uity
(S
A+
CF
) M
ed
ian
8.4
81
5.4
57
.79
20
.88
20
.88
9.1
12
.77
Wa
satc
h S
ma
ll C
ap
Gro
wth
N/A
N/A
7.2
2(2
5)
12
.50
(43
)1
2.5
0(4
3)
4.2
3(3
8)
1.0
3(4
2)
R
uss
ell
20
00
Gro
wth
In
de
x7
.76
(63
)1
3.7
4(5
2)
5.0
5(4
6)
11
.32
(50
)1
1.3
2(5
0)
3.5
7(4
3)
1.3
6(3
7)
I
M U
.S. S
ma
ll C
ap
Gro
wth
Eq
uity
(S
A+
CF
) M
ed
ian
8.4
81
3.8
74
.65
11
.20
11
.20
3.1
90
.81
To
tal In
tern
ati
on
al
Eq
uit
y C
om
po
sit
e1
.90
(69
)7
.32
(47
)-1
.54
(68
)-0
.85
(81
)-0
.85
(81
)-2
.80
(49
)1
.87
(49
)
T
ota
l In
tern
atio
na
l Eq
uity
Po
licy
1.6
9(7
5)
5.8
2(6
7)
-1.0
0(5
8)
4.9
1(4
4)
4.9
1(4
4)
-1.5
2(3
6)
2.5
3(3
5)
I
M In
tern
atio
na
l Eq
uity
(S
A+
CF
) M
ed
ian
2.7
67
.20
-0.3
93
.74
3.7
4-2
.90
1.7
8
To
tal In
tern
ati
on
al
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
N/A
7.6
6(4
2)
-1.6
6(7
1)
0.5
8(7
3)
0.5
8(7
3)
-1.4
7(3
6)
2.2
1(4
2)
T
ota
l In
tern
atio
na
l La
rge
Ca
p E
qu
ity P
olic
y1
.69
(75
)5
.82
(67
)-1
.00
(58
)4
.91
(44
)4
.91
(44
)-1
.52
(36
)2
.53
(35
)
I
M In
tern
atio
na
l Eq
uity
(S
A+
CF
) M
ed
ian
2.7
67
.20
-0.3
93
.74
3.7
4-2
.90
1.7
8
Alli
an
z In
tern
atio
na
lN
/AN
/AN
/AN
/AN
/A0
.75
(51
)3
.11
(5)
M
SC
I A
C W
orl
d e
x U
SA
1.4
2(1
00
)5
.48
(10
0)
-1.3
2(1
00
)5
.01
(66
)5
.01
(66
)-1
.20
(68
)2
.59
(18
)
I
M G
lob
al L
arg
e C
ap
Co
re E
qu
ity (
SA
+C
F)
Me
dia
n4
.87
11
.03
4.2
76
.24
6.2
40
.81
1.9
7
Ca
use
wa
y In
tern
atio
na
l1
.98
(57
)7
.33
(63
)-2
.30
(86
)1
.70
(46
)1
.70
(46
)0
.68
(7)
2.7
7(4
2)
C
au
sew
ay
Intl
Po
licy
1.8
8(6
2)
6.4
4(8
3)
0.1
7(4
1)
9.8
6(3
)9
.86
(3)
3.3
6(2
)3
.64
(8)
I
M In
tern
atio
na
l Co
re E
qu
ity (
SA
+C
F)
Me
dia
n2
.14
7.9
7-0
.24
1.3
11
.31
-2.2
42
.52
We
llin
gto
n Q
ua
lity
Gro
wth
In
tern
atio
na
lN
/AN
/AN
/AN
/AN
/A-8
.40
(96
)-0
.45
(93
)
W
elli
ng
ton
In
tl Q
ua
lity
Gro
wth
Po
licy
2.1
9(6
5)
6.7
5(7
5)
-1.2
9(6
1)
-3.0
6(7
1)
-3.0
6(7
1)
-5.6
8(7
5)
1.4
9(6
4)
I
M In
tern
atio
na
l La
rge
Ca
p G
row
th E
qu
ity (
SA
+C
F)
Me
dia
n2
.80
7.3
3-0
.68
-0.0
9-0
.09
-4.0
51
.92
To
tal In
tern
ati
on
al
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
N/A
10
.55
(66
)-0
.03
(86
)-2
.73
(86
)-2
.73
(86
)-4
.69
(64
)1
.38
(69
)
T
ota
l In
tern
atio
na
l Sm
all
Ca
p E
qu
ity P
olic
y3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)4
.29
(32
)-3
.47
(47
)2
.15
(43
)
I
M In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
AR
I S
ma
ll C
ap
In
tern
atio
na
lN
/A1
0.4
9(6
8)
1.7
3(6
0)
5.9
3(2
6)
5.9
3(2
6)
0.6
1(9
)2
.35
(39
)
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)4
.29
(32
)-3
.47
(47
)2
.15
(43
)
I
M In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
N/A
9.0
6(8
4)
-0.8
4(9
0)
-2.2
4(8
1)
-2.2
4(8
1)
-2.9
6(3
9)
2.8
9(1
7)
MS
CI
AC
Wo
rld
ex
US
A S
ma
ll C
ap
3.2
6(8
4)
8.1
2(9
1)
1.1
2(7
2)
4.2
9(3
2)
4.2
9(3
2)
-3.4
7(4
7)
2.1
5(4
3)
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
49
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
SS
GA
Em
erg
ing
Ma
rke
ts S
ma
ll C
ap
N/A
N/A
N/A
N/A
N/A
-4.7
3(6
5)
-0.3
9(9
6)
M
SC
I E
me
rgin
g M
ark
ets
Sm
all
Ca
p I
nd
ex
3.7
0(7
4)
3.8
3(1
00
)-0
.97
(90
)2
.56
(39
)2
.56
(39
)-6
.18
(82
)-0
.12
(92
)
I
M In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
Wa
satc
h S
ma
ll C
ap
In
tern
atio
na
lN
/A1
2.0
3(4
4)
0.4
7(7
6)
-6.7
1(9
7)
-6.7
1(9
7)
-10
.99
(10
0)
-0.8
6(9
8)
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)4
.29
(32
)-3
.47
(47
)2
.15
(43
)
I
M In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
We
llin
gto
n S
ma
ll C
ap
In
tern
atio
na
lN
/A1
1.0
3(6
0)
-0.7
4(9
0)
-5.1
6(9
6)
-5.1
6(9
6)
-4.3
9(6
2)
2.8
8(1
7)
W
elli
ng
ton
In
tl S
ma
ll C
ap
Po
licy
3.2
3(8
4)
10
.77
(64
)2
.22
(54
)1
.86
(45
)1
.86
(45
)-3
.47
(47
)2
.15
(43
)
I
M In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
1.0
6-3
.74
1.8
7
To
tal F
ixe
d I
nc
om
e C
om
po
sit
e7
.17
(1)
4.7
7(1
)4
.50
(3)
7.7
7(2
)7
.77
(2)
-2.5
3(1
8)
0.6
7(2
)
T
ota
l Fix
ed
In
com
e P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)3
.04
(53
)-2
.61
(27
)0
.30
(18
)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
To
tal F
ixe
d I
nc
om
e C
ore
Co
mp
os
ite
6.1
3(2
)3
.75
(10
)4
.10
(9)
4.9
8(7
)4
.98
(7)
-4.1
0(1
00
)0
.26
(22
)
T
ota
l Fix
ed
In
com
e C
ore
Po
licy
4.3
8(8
8)
2.3
1(8
7)
3.1
6(7
4)
3.0
4(5
3)
3.0
4(5
3)
-2.6
1(2
7)
0.3
0(1
8)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
To
tal F
ixe
d I
nc
om
e C
ore
Plu
s C
om
po
sit
e6
.18
(2)
4.0
3(7
)3
.34
(50
)5
.81
(4)
5.8
1(4
)-2
.16
(7)
0.4
0(8
)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)3
.04
(53
)-2
.61
(27
)0
.30
(18
)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
Lo
om
is S
ayl
es
Co
re P
lus
7.0
5(1
)4
.54
(2)
3.7
5(2
4)
7.4
8(2
)7
.48
(2)
-2.1
3(7
)0
.38
(9)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)3
.04
(53
)-2
.61
(27
)0
.30
(18
)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
Lo
rd A
bb
ett C
ore
Plu
s5
.79
(3)
3.8
6(8
)3
.81
(20
)4
.82
(7)
4.8
2(7
)-2
.39
(9)
0.3
2(1
5)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)3
.04
(53
)-2
.61
(27
)0
.30
(18
)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
Ma
cka
y S
hie
lds
Co
re P
lus
5.7
9(3
)3
.66
(11
)2
.43
(10
0)
5.1
5(6
)5
.15
(6)
-1.9
5(6
)0
.50
(5)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)3
.04
(53
)-2
.61
(27
)0
.30
(18
)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
To
tal F
ixe
d I
nc
om
e A
cti
ve
Du
rati
on
Co
mp
os
ite
6.8
0(1
)4
.29
(4)
9.2
7(1
)0
.30
(10
0)
0.3
0(1
00
)-1
4.2
5(1
00
)-0
.59
(10
0)
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
5(9
5)
2.0
5(9
9)
2.7
2(9
8)
1.7
3(9
8)
1.7
3(9
8)
-3.8
4(1
00
)-0
.11
(10
0)
I
M U
.S. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
3.1
0-2
.80
0.1
5
Ho
isin
gto
n A
ctiv
e D
ura
tion
7.3
4(1
0)
2.4
5(3
2)
9.2
7(8
)0
.30
(98
)0
.30
(98
)-1
4.2
5(9
1)
-0.5
9(9
4)
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
5(3
8)
2.0
5(3
4)
2.7
2(4
0)
1.7
3(1
4)
1.7
3(1
4)
-3.8
4(6
3)
-0.1
1(6
8)
IM U
.S.
Go
vern
me
nt
Bo
nd
s (S
A+
CF
) M
ed
ian
3.7
01
.28
1.9
01
.37
1.3
7-2
.20
-0.0
2
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
50
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal F
ixe
d I
nc
om
e H
igh
Yie
ld C
om
po
sit
eN
/A8
.27
(15
)5
.55
(17
)1
5.6
8(2
8)
15
.68
(28
)1
.77
(40
)1
.77
(49
)
T
ota
l Fix
ed
In
com
e H
igh
Yie
ld P
olic
y7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
17
.49
(13
)1
.88
(36
)1
.97
(25
)
I
M U
.S. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
14
.07
1.5
81
.76
Lo
om
is S
ayl
es
Hig
h Y
ield
N/A
8.0
9(1
9)
4.3
4(5
4)
14
.48
(45
)1
4.4
8(4
5)
0.8
4(8
8)
1.5
7(7
0)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
17
.49
(13
)1
.88
(36
)1
.97
(25
)
I
M U
.S. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
14
.07
1.5
81
.76
Lo
rd A
bb
ett H
igh
Yie
ldN
/A8
.85
(7)
6.0
8(7
)1
5.6
5(2
8)
15
.65
(28
)2
.58
(17
)1
.89
(35
)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
17
.49
(13
)1
.88
(36
)1
.97
(25
)
I
M U
.S. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
14
.07
1.5
81
.76
Ma
cka
y S
hie
lds
Hig
h Y
ield
N/A
7.6
8(3
0)
5.9
5(9
)1
6.8
7(1
7)
16
.87
(17
)1
.86
(37
)1
.83
(43
)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
17
.49
(13
)1
.88
(36
)1
.97
(25
)
I
M U
.S. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
14
.07
1.5
81
.76
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
51
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
To
tal A
lte
rna
tiv
es
Co
mp
os
ite
N/A
N/A
N/A
16
.45
16
.45
4.0
64
.26
To
tal O
pp
ort
un
isti
c F
ixe
d I
nc
om
e C
om
po
sit
eN
/AN
/AN
/A1
2.1
31
2.1
34
.55
4.5
5
T
ota
l Op
po
rtu
nis
tic F
ixe
d I
nco
me
Po
licy
4.3
82
.31
3.1
63
.04
3.0
4-2
.61
0.3
0
PIM
CO
Bra
vo I
N/A
19
.65
11
.43
12
.46
12
.46
2.4
52
.45
T
ota
l Op
po
rtu
nis
tic F
ixe
d I
nco
me
Po
licy
4.3
82
.31
3.1
63
.04
3.0
4-2
.61
0.3
0
PIM
CO
Bra
vo I
IN
/AN
/A1
4.3
51
2.1
81
2.1
84
.77
4.7
7
T
ota
l Op
po
rtu
nis
tic F
ixe
d I
nco
me
Po
licy
4.3
82
.31
3.1
63
.04
3.0
4-2
.61
0.3
0
PIM
CO
Co
rp O
pp
II
N/A
N/A
N/A
N/A
N/A
3.3
23
.32
T
ota
l Op
po
rtu
nis
tic F
ixe
d I
nco
me
Po
licy
4.3
82
.31
3.1
63
.04
3.0
4-2
.61
0.3
0
To
tal R
ea
l E
sta
te C
om
po
sit
eN
/AN
/AN
/A8
.75
8.7
52
.04
2.0
4
T
ota
l Re
al E
sta
te P
olic
y5
.62
12
.20
12
.21
9.2
79
.27
2.1
62
.16
To
tal C
ore
Re
al
Es
tate
Co
mp
os
ite
N/A
10
.61
11
.43
9.3
69
.36
2.3
52
.35
T
ota
l Co
re R
ea
l Est
ate
Po
licy
5.6
21
2.2
01
2.2
19
.27
9.2
72
.16
2.1
6
AE
W R
ea
l Est
ate
N/A
11
.05
11
.15
8.4
88
.48
2.0
02
.00
N
CR
EIF
Fu
nd
In
de
x-O
pe
n E
nd
Div
ers
ifie
d C
ore
(E
W)
5.6
21
2.2
01
2.2
19
.27
9.2
72
.16
2.1
6
He
itma
n R
ea
l Est
ate
N/A
12
.78
12
.24
9.9
69
.96
2.5
42
.54
N
CR
EIF
Fu
nd
In
de
x-O
pe
n E
nd
Div
ers
ifie
d C
ore
(E
W)
5.6
21
2.2
01
2.2
19
.27
9.2
72
.16
2.1
6
L&
B R
ea
l Est
ate
N/A
11
.39
13
.26
9.6
59
.65
2.5
42
.54
N
CR
EIF
Fu
nd
In
de
x-O
pe
n E
nd
Div
ers
ifie
d C
ore
(E
W)
5.6
21
2.2
01
2.2
19
.27
9.2
72
.16
2.1
6
To
tal N
on
-Co
re R
ea
l E
sta
te C
om
po
sit
eN
/AN
/AN
/A6
.51
6.5
11
.02
1.0
2
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
An
the
us
Ca
pita
lN
/AN
/AN
/A0
.00
0.0
00
.00
0.0
0
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
Du
ne
N/A
N/A
N/A
10
.09
10
.09
0.0
00
.00
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
Gre
en
Oa
k R
ea
l Est
ate
N/A
N/A
N/A
0.6
40
.64
0.0
00
.00
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
L&
B G
old
en
Dri
ller
N/A
N/A
N/A
0.0
00
.00
0.0
00
.00
To
tal N
on
-Co
re R
ea
l Est
ate
Po
licy
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
52
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
un
d
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RY
TD
QT
RM
TH
La
nd
ma
rk R
ea
ltyN
/AN
/AN
/A8
.11
8.1
10
.00
0.0
0
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
Am
eri
can
Re
alty
N/A
N/A
N/A
13
.14
13
.14
3.4
43
.44
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
Sta
rwo
od
N/A
N/A
N/A
19
.12
19
.12
5.2
25
.22
T
ota
l No
n-C
ore
Re
al E
sta
te P
olic
yN
/AN
/AN
/AN
/AN
/AN
/AN
/A
To
tal P
riv
ate
Eq
uit
y C
om
po
sit
eN
/AN
/AN
/A1
0.8
61
0.8
65
.83
5.8
3
T
ota
l Pri
vate
Eq
uity
Po
licy
11
.89
20
.41
14
.72
22
.15
22
.15
9.9
13
.14
Le
ga
cy P
riva
te E
qu
ity P
ort
folio
N/A
10
.35
6.2
16
.64
6.6
40
.00
0.0
0
T
ota
l Pri
vate
Eq
uity
Po
licy
11
.89
20
.41
14
.72
22
.15
22
.15
9.9
13
.14
Fra
nkl
in P
ark
Pri
vate
Eq
uity
N/A
11
.99
13
.73
11
.07
11
.07
6.1
46
.14
T
ota
l Pri
vate
Eq
uity
Po
licy
11
.89
20
.41
14
.72
22
.15
22
.15
9.9
13
.14
To
tal M
as
ter
Lim
ite
d P
art
ne
rsh
ips
Co
mp
os
ite
N/A
8.9
90
.51
26
.63
26
.63
4.8
25
.36
T
ota
l ML
P P
olic
y8
.04
2.2
5-5
.80
18
.31
18
.31
2.0
44
.39
Ch
icka
saw
ML
PN
/A1
4.2
03
.17
28
.06
28
.06
5.7
25
.18
A
leri
an
ML
P I
nd
ex
8.0
42
.25
-5.8
01
8.3
11
8.3
12
.04
4.3
9
AR
I M
LP
N/A
4.6
9-2
.27
22
.64
22
.64
3.3
34
.53
A
leri
an
ML
P I
nd
ex
8.0
42
.25
-5.8
01
8.3
11
8.3
12
.04
4.3
9
Cu
shin
g M
LP
N/A
9.6
50
.11
28
.02
28
.02
4.7
36
.09
A
leri
an
ML
P I
nd
ex
8.0
42
.25
-5.8
01
8.3
11
8.3
12
.04
4.3
9
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
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as
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17
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)6
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)
D
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ren
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90
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33
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U.S
. L
arg
e C
ap
Va
lue
Eq
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A+
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ed
ian
6.8
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Sa
wg
rass
La
rge
Ca
p G
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R
uss
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10
00
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wth
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de
x8
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6)
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6)
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arg
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Eq
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8.0
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To
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om
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mp
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N/A
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No
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U.S
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arg
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re E
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0 E
qu
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hte
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U.S
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arg
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13
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Co
mp
ara
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ce
To
tal A
ll C
ap
an
d L
arg
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ap
Do
me
sti
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qu
ity
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of
De
ce
mb
er
31
, 2
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6
Re
turn
s fo
r p
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ter
tha
n o
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ye
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are
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nu
aliz
ed
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ress
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as
pe
rce
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61
Co
mp
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Tra
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RQ
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To
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Ca
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ity
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mp
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8.3
61
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4.7
2
T
ota
l Do
me
stic
Mid
Ca
p E
qu
ity P
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y7
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14
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21
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D
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ren
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41
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AJO
Mid
Ca
p8
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5.4
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3)
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4(4
8)
12
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)
R
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cap
In
de
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53
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IM
U.S
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id C
ap
Eq
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A+
CF
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ed
ian
8.7
61
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97
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Fro
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)
R
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We
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R
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Ho
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Eq
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8.5
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To
tal D
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Sm
all
Ca
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T
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all
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R
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00
In
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D
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15
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8
IM
U.S
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ma
ll C
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re E
qu
ity (
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16
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8.5
12
0.7
39
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Ge
ne
va S
ma
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8(2
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)
R
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20
00
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ma
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8.4
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74
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9
Wa
satc
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ma
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Co
mp
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ce
To
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id C
ap
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ma
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Do
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As
of
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6
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62
Co
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ce
To
tal M
id C
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an
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ma
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Do
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qu
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As
of
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mb
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31
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6
10
YR
5 Y
R3
YR
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RQ
TD
Co
ve S
tre
et S
ma
ll C
ap
Va
lue
N/A
N/A
5.2
7(8
3)
20
.69
(83
)5
.06
(97
)
R
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20
00
Va
lue
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de
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(94
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5.0
7(6
9)
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31
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4.0
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1
IM
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ma
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Eq
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8.6
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58
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Fro
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ma
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N/A
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31
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00
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ma
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lue
Eq
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ed
ian
8.6
11
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12
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Ne
um
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ma
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00
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6
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ma
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Eq
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8.6
11
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26
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turn
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are
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as
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63
Ac
tiv
e D
om
es
tic
Eq
uit
y S
tati
sti
cs
- T
rail
ing
Fiv
e Y
ea
rs
Up
Ma
rke
tC
ap
ture
Do
wn
Ma
rke
tC
ap
ture
Re
turn
Ac
tua
lC
orr
ela
tio
n
La
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Ca
p A
cti
ve
Ma
na
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rs
Ho
tch
kis
& W
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La
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Ca
p V
alu
e1
16
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12
0.9
71
6.6
90
.95
R
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10
00
Va
lue
In
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10
0.0
01
4.8
01
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IM
U.S
. L
arg
e C
ap
Co
re E
qu
ity (
SA
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F)
Me
dia
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6.2
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31
4.5
60
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Sa
wg
rass
La
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Ca
p G
row
th9
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48
1.4
81
3.9
40
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10
00
Gro
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In
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10
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arg
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All C
ap
Ma
na
ge
rs
Ep
och
All
Ca
p9
8.8
81
04
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13
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0.9
7
R
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30
00
In
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x1
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71
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IM
U.S
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00
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Mid
Ca
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Mid
Ca
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R
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Eq
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10
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05
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5
Ho
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12
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R
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Va
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71
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0.9
5
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0.6
29
5.3
01
4.2
20
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R
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In
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01
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11
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IM
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Gro
wth
Eq
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ian
10
0.3
91
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0.9
4
We
llin
gto
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11
39
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5
R
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cap
Gro
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In
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IM
U.S
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91
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4
Mu
lti-
Sta
tis
tic
s
To
tal A
cti
ve
Do
me
sti
c E
qu
ity
As
of
De
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mb
er
31
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01
6
Du
e t
o la
ck o
f h
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act
ua
l clie
nt
po
rtfo
lio,
ma
na
ge
r co
mp
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te d
ata
ha
s b
ee
n u
sed
fo
r C
ove
Str
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t S
CV
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ron
tier
SC
V, G
en
eva
SC
G, N
eu
me
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Po
ma
SC
V, a
nd
Wa
satc
h S
CG
.
64
Mu
lti-
Sta
tis
tic
s
To
tal A
cti
ve
Do
me
sti
c E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
Up
Ma
rke
tC
ap
ture
Do
wn
Ma
rke
tC
ap
ture
Re
turn
Ac
tua
lC
orr
ela
tio
n
Sm
all C
ap
Ma
na
ge
rs
Co
ve S
tre
et S
ma
ll C
ap
Va
lue
97
.95
92
.42
15
.48
0.8
8
R
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20
00
Va
lue
In
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10
0.0
01
5.0
71
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IM
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ma
ll C
ap
Va
lue
Eq
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98
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90
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15
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5
Fro
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ma
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Va
lue
10
8.5
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R
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20
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IM
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ma
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ap
Va
lue
Eq
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98
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5
Ge
ne
va S
ma
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85
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63
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1
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ell
20
00
Gro
wth
In
de
x1
00
.00
10
0.0
01
3.7
41
.00
IM
U.S
. S
ma
ll C
ap
Gro
wth
Eq
uity
(S
A+
CF
) M
ed
ian
93
.84
88
.00
13
.87
0.9
4
Ne
um
eie
r P
om
a S
ma
ll V
alu
e9
4.1
07
6.8
31
6.9
00
.91
R
uss
ell
20
00
Va
lue
In
de
x1
00
.00
10
0.0
01
5.0
71
.00
IM
U.S
. S
ma
ll C
ap
Va
lue
Eq
uity
(S
A+
CF
) M
ed
ian
98
.17
90
.87
15
.95
0.9
5
Sh
ap
iro
Sm
all
Ca
p1
02
.50
92
.31
16
.95
0.9
0
R
uss
ell
20
00
Va
lue
In
de
x1
00
.00
10
0.0
01
5.0
71
.00
IM
U.S
. S
ma
ll C
ap
Va
lue
Eq
uity
(S
A+
CF
) M
ed
ian
98
.17
90
.87
15
.95
0.9
5
Wa
satc
h S
ma
ll C
ap
Gro
wth
79
.70
73
.63
12
.05
0.9
6
R
uss
ell
20
00
Gro
wth
In
de
x1
00
.00
10
0.0
01
3.7
41
.00
IM
U.S
. S
ma
ll C
ap
Gro
wth
Eq
uity
(S
A+
CF
) M
ed
ian
93
.84
88
.00
13
.87
0.9
4
Du
e t
o la
ck o
f h
isto
ry in
act
ua
l clie
nt
po
rtfo
lio,
ma
na
ge
r co
mp
osi
te d
ata
ha
s b
ee
n u
sed
fo
r C
ove
Str
ee
t S
CV
, F
ron
tier
SC
V, G
en
eva
SC
G, N
eu
me
ier
Po
ma
SC
V, a
nd
Wa
satc
h S
CG
.
65
Ac
tua
l C
orr
ela
tio
n M
atr
ix
AJ
O M
CC
ov
e S
tre
et
SC
VE
po
ch
AC
Fro
nti
er
MC
GF
ron
tie
r S
CV
Ge
ne
va
SC
GH
otc
hk
isL
CV
Ho
tch
kis
MC
VN
eu
me
ier
Po
ma
S
CV
Sa
wg
ras
sL
CG
Sh
ap
iro
SC
CW
as
atc
hS
CG
We
llin
gto
nM
CG
AJO
MC
1.0
0
Co
ve S
tre
et S
CV
0.8
81
.00
Ep
och
AC
0.9
30
.86
1.0
0
Fro
ntie
r M
CG
0.9
10
.84
0.8
91
.00
Fro
ntie
r S
CV
0.8
70
.89
0.8
20
.83
1.0
0
Ge
ne
va S
CG
0.7
70
.82
0.7
60
.81
0.8
41
.00
Ho
tch
kis
LC
V0
.88
0.8
70
.92
0.8
20
.85
0.7
41
.00
Ho
tch
kis
MC
V0
.87
0.8
70
.86
0.8
10
.88
0.7
40
.93
1.0
0
Ne
um
eie
r P
om
a
SC
V0
.87
0.8
50
.86
0.8
70
.92
0.8
70
.83
0.8
31
.00
Sa
wg
rass
LC
G0
.88
0.7
80
.93
0.8
50
.73
0.7
30
.83
0.7
50
.78
1.0
0
Sh
ap
iro
SC
C0
.87
0.8
60
.81
0.8
30
.88
0.7
60
.85
0.8
60
.82
0.7
31
.00
Wa
satc
h S
CG
0.8
30
.82
0.8
30
.89
0.8
40
.89
0.7
80
.78
0.8
70
.75
0.8
21
.00
We
llin
gto
n M
CG
0.9
40
.86
0.9
00
.93
0.8
30
.81
0.8
40
.83
0.8
80
.84
0.8
70
.86
1.0
0
Ac
tua
l C
orr
ela
tio
n M
atr
ix
To
tal D
om
es
tic
Eq
uit
y
5 Y
ea
rs E
nd
ing
De
ce
mb
er
31
, 2
01
6
Du
e t
o la
ck o
f h
isto
ry in
act
ua
l clie
nt
po
rtfo
lio,
ma
na
ge
r co
mp
osi
te d
ata
ha
s b
ee
n u
sed
fo
r C
ove
Str
ee
t S
CV
, F
ron
tier
SC
V, G
en
eva
SC
G, N
eu
me
ier
Po
ma
SC
V, a
nd
Wa
satc
h S
CG
.
66
Ris
k a
nd
Re
turn
4 Y
ea
rs
Ho
tch
kis
& W
iley L
arg
e C
ap
Va
lue
Sa
wg
rass L
arg
e C
ap
Gro
wth
Ep
och
All
Ca
pA
JO
Mid
Ca
p
Ho
tch
kis
& W
iley M
id C
ap
Va
lue
Fro
ntie
r M
id C
ap
Gro
wth
We
llin
gto
n M
id C
ap
Gro
wth
Co
ve
Str
ee
t S
ma
ll C
ap
Va
lue
Fro
ntie
r S
ma
ll C
ap
Va
lue
Ge
ne
va
Sm
all
Ca
p G
row
thN
eu
me
ier
Po
ma
Sm
all
Va
lue
Sh
ap
iro
Sm
all
Ca
p
Wa
sa
tch
Sm
all
Ca
p G
row
thS
SG
A E
qu
al W
eig
hte
d P
assiv
eN
ort
he
rn T
rust
Ca
p W
eig
hte
d P
assiv
eT
ota
l Do
me
stic
Eq
uity
Co
mp
osite
To
tal D
om
estic
Eq
uity
Po
licy
9.0
10
.0
11
.0
12
.0
13
.0
14
.0
15
.0
16
.0
17
.0
18
.0
19
.0
20
.0
Return (%)
9.0
9.6
10
.21
0.8
11
.41
2.0
12
.61
3.2
13
.81
4.4
15
.01
5.6
16
.21
6.8
17
.41
8.0
Ris
k (
Sta
nd
ard
De
via
tio
n %
)
To
tal D
om
est
ic E
qu
ity P
olic
yT
ota
l Do
me
stic
Eq
uity
Co
mp
osi
te
No
rth
ern
Tru
st C
ap
We
igh
ted
Pa
ssiv
e
SS
GA
Eq
ua
l We
igh
ted
Pa
ssiv
e
Wa
satc
h S
ma
ll C
ap
Gro
wth
Sh
ap
iro
Sm
all
Ca
p
Ne
um
eie
r P
om
a S
ma
ll V
alu
e
Ge
ne
va S
ma
ll C
ap
Gro
wth
Fro
ntie
r S
ma
ll C
ap
Va
lue
Co
ve S
tre
et
Sm
all
Ca
p V
alu
e
We
llin
gto
n M
id C
ap
Gro
wth
Fro
ntie
r M
id C
ap
Gro
wth
Ho
tch
kis
& W
iley
Mid
Ca
p V
alu
e
AJO
Mid
Ca
p
Ep
och
All
Ca
p
Sa
wg
rass
La
rge
Ca
p G
row
th
Ho
tch
kis
& W
iley
La
rge
Ca
p V
alu
e
Ris
k a
nd
Re
turn
To
tal D
om
es
tic
Eq
uit
y
4 Y
ea
rs E
nd
ing
De
ce
mb
er
31
, 2
01
6
Ca
lcu
latio
n b
ase
d o
n m
on
thly
pe
rio
dic
ity.
Du
e t
o la
ck o
f h
isto
ry in
act
ua
l clie
nt
po
rtfo
lio, m
an
ag
er
com
po
site
da
ta h
as
be
en
use
d fo
r C
ove
Str
ee
t S
CV
, F
ron
tier
SC
V, G
en
eva
SC
G, N
eu
me
ier
Po
ma
SC
V, a
nd
Wa
satc
h S
CG
.
67
TO
TA
L I
NT
ER
NA
TIO
NA
L E
QU
ITY
68
De
ce
mb
er
31
, 2
01
6 :
$2
,22
1,2
37
,34
8
Ca
use
wa
y In
tern
atio
na
l1
4.5
%
Alli
an
z In
tern
atio
na
l 3
1.7
%
We
llin
gto
n S
ma
ll C
ap
In
tern
atio
na
l8
.4%
Wa
satc
h S
ma
ll C
ap
In
tern
atio
na
l8
.4%
SS
GA
Em
erg
ing
Ma
rke
ts S
ma
ll C
ap
7.4
%
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
8.2
%
AR
I S
ma
ll C
ap
In
tern
atio
na
l8
.0%
We
llin
gto
n Q
ua
lity
Gro
wth
In
tern
atio
na
l1
3.3
%
As
se
t A
llo
ca
tio
n B
y M
an
ag
er
To
tal In
tern
ati
on
al E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
69
Co
mp
ara
tiv
e P
erf
orm
an
ce
In
tern
ati
on
al
Eq
uit
y S
um
ma
ry a
s o
f D
ec
em
be
r 3
1,
20
16
Inte
rna
tion
al L
arg
e C
ap
Eq
uity
Inte
rna
tion
al S
ma
ll C
ap
Eq
uity
To
tal I
nte
rna
tion
al E
qu
ity C
om
po
site
To
tal I
nte
rna
tion
al E
qu
ity P
olic
y
0.0
3.0
6.0
9.0
12
.0
15
.0
-3.0
-6.0
-9.0
Return (%)
10
YR
5 Y
R3
YR
1 Y
RQ
TD
1.7
5.8
-1.0
4.9
-1.5
10
YR
5 Y
R3
YR
1 Y
RQ
TD
Inte
rna
tion
al L
arg
e C
ap
Eq
uity
N/A
7.7
-1.7
0.6
-1.5
Inte
rna
tion
al S
ma
ll C
ap
Eq
uity
N/A
10
.60
.0-2
.7-4
.7
Inte
rna
tion
al E
qu
ity C
om
po
site
1.9
7.3
-1.5
-0.9
-2.8
To
tal I
nte
rna
tion
al E
qu
ity P
olic
y1
.75
.8-1
.04
.9-1
.5
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal In
tern
ati
on
al E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s a
re e
xpre
sse
d a
s p
erc
en
tag
es.
70
Co
mp
ara
tiv
e P
erf
orm
an
ce
Tra
ilin
g R
etu
rns
10
YR
5 Y
R3
YR
1 Y
RQ
TD
To
tal In
tern
ati
on
al
Eq
uit
y C
om
po
sit
e1
.90
7.3
2-1
.54
-0.8
5-2
.80
T
ota
l In
tern
atio
na
l Eq
uity
Po
licy
1.6
95
.82
-1.0
04
.91
-1.5
2
D
iffe
ren
ce0
.21
1.5
0-0
.54
-5.7
6-1
.28
To
tal In
tern
ati
on
al
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
N/A
7.6
6-1
.66
0.5
8-1
.47
T
ota
l In
tern
atio
na
l La
rge
Ca
p E
qu
ity P
olic
y1
.69
5.8
2-1
.00
4.9
1-1
.52
D
iffe
ren
ceN
/A1
.84
-0.6
6-4
.33
0.0
5
To
tal In
tern
ati
on
al
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
N/A
10
.55
-0.0
3-2
.73
-4.6
9
T
ota
l In
tern
atio
na
l Sm
all
Ca
p E
qu
ity P
olic
y3
.26
8.1
21
.12
4.2
9-3
.47
D
iffe
ren
ceN
/A2
.43
-1.1
5-7
.02
-1.2
2
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal In
tern
ati
on
al E
qu
ity
Co
mp
os
ite
s
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
71
Co
mp
ara
tiv
e P
erf
orm
an
ce
Tra
ilin
g R
etu
rns
10
YR
5 Y
R3
YR
1 Y
RQ
TD
To
tal In
tern
ati
on
al
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
N/A
7.6
6(4
2)
-1.6
6(7
1)
0.5
8(7
3)
-1.4
7(3
6)
T
ota
l In
tern
atio
na
l La
rge
Ca
p E
qu
ity P
olic
y1
.69
(75
)5
.82
(67
)-1
.00
(58
)4
.91
(44
)-1
.52
(36
)
D
iffe
ren
ceN
/A1
.84
-0.6
6-4
.33
0.0
5
IM
In
tern
atio
na
l Eq
uity
(S
A+
CF
) M
ed
ian
2.7
67
.20
-0.3
93
.74
-2.9
0
Ca
use
wa
y In
tern
atio
na
l1
.98
(57
)7
.33
(63
)-2
.30
(86
)1
.70
(46
)0
.68
(7)
C
au
sew
ay
Intl
Po
licy
1.8
8(6
2)
6.4
4(8
3)
0.1
7(4
1)
9.8
6(3
)3
.36
(2)
D
iffe
ren
ce0
.10
0.8
9-2
.47
-8.1
6-2
.68
IM
In
tern
atio
na
l Co
re E
qu
ity (
SA
+C
F)
Me
dia
n2
.14
7.9
7-0
.24
1.3
1-2
.24
Alli
an
z In
tern
atio
na
lN
/AN
/AN
/AN
/A0
.75
(7)
M
SC
I A
C W
orl
d e
x U
SA
1.4
2(7
9)
5.4
8(9
3)
-1.3
2(6
9)
5.0
1(1
6)
-1.2
0(3
6)
D
iffe
ren
ceN
/AN
/AN
/AN
/A1
.95
IM
In
tern
atio
na
l Co
re E
qu
ity (
SA
+C
F)
Me
dia
n2
.14
7.9
7-0
.24
1.3
1-2
.24
We
llin
gto
n Q
ua
lity
Gro
wth
In
tern
atio
na
lN
/AN
/AN
/AN
/A-8
.40
(96
)
W
elli
ng
ton
In
tl Q
ua
lity
Gro
wth
Po
licy
2.1
9(6
5)
6.7
5(7
5)
-1.2
9(6
1)
-3.0
6(7
1)
-5.6
8(7
5)
D
iffe
ren
ceN
/AN
/AN
/AN
/A-2
.72
IM
In
tern
atio
na
l La
rge
Ca
p G
row
th E
qu
ity (
SA
+C
F)
Me
dia
n2
.80
7.3
3-0
.68
-0.0
9-4
.05
To
tal In
tern
ati
on
al
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
N/A
10
.55
(66
)-0
.03
(86
)-2
.73
(86
)-4
.69
(64
)
T
ota
l In
tern
atio
na
l Sm
all
Ca
p E
qu
ity P
olic
y3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)-3
.47
(47
)
D
iffe
ren
ceN
/A2
.43
-1.1
5-7
.02
-1.2
2
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
-3.7
4
AR
I S
ma
ll C
ap
In
tern
atio
na
lN
/A1
0.4
9(6
8)
1.7
3(6
0)
5.9
3(2
6)
0.6
1(9
)
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)-3
.47
(47
)
D
iffe
ren
ceN
/A2
.37
0.6
11
.64
4.0
8
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
-3.7
4
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
N/A
9.0
6(8
4)
-0.8
4(9
0)
-2.2
4(8
1)
-2.9
6(3
9)
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
)-3
.47
(47
)
D
iffe
ren
ceN
/A0
.94
-1.9
6-6
.53
0.5
1
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
-3.7
4
Wa
satc
h S
ma
ll C
ap
In
tern
atio
na
lN
/A1
2.0
3(4
4)
0.4
7(7
6)
-6.7
1(9
7)
-10
.99
(10
0)
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p3
.26
(84
)8
.12
(91
)1
.12
(72
)4
.29
(32
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.47
(47
)
D
iffe
ren
ceN
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5-1
1.0
0-7
.52
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
F)
Me
dia
n4
.74
11
.54
2.3
71
.06
-3.7
4
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal In
tern
ati
on
al E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
72
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal In
tern
ati
on
al E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RQ
TD
We
llin
gto
n S
ma
ll C
ap
In
tern
atio
na
lN
/A1
1.0
3(6
0)
-0.7
4(9
0)
-5.1
6(9
6)
-4.3
9(6
2)
W
elli
ng
ton
In
tl S
ma
ll C
ap
Po
licy
3.2
3(8
4)
10
.77
(64
)2
.22
(54
)1
.86
(45
)-3
.47
(47
)
D
iffe
ren
ceN
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.26
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6-7
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2
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
+C
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Me
dia
n4
.74
11
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71
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4
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
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etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
73
Ac
tiv
e In
tern
ati
on
al
Eq
uit
y S
tati
sti
cs
- T
rail
ing
Fiv
e Y
ea
rs
Up
Ma
rke
tC
ap
ture
Do
wn
Ma
rke
tC
ap
ture
Re
turn
Ac
tua
lC
orr
ela
tio
n
Inte
rna
tio
na
l L
arg
e C
ap
Eq
uit
y M
an
ag
ers
Ca
use
wa
y In
tern
atio
na
l1
00
.55
94
.85
7.3
30
.97
C
au
sew
ay
Intl
Po
licy
10
0.0
01
00
.00
6.4
41
.00
IM
In
tern
atio
na
l Co
re E
qu
ity (
SA
+C
F)
Me
dia
n9
8.3
68
5.9
87
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0.9
5
Alli
an
z In
tern
atio
na
l9
7.0
21
16
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2.1
10
.98
M
SC
I A
C W
orl
d e
x U
SA
10
0.0
01
00
.00
5.4
81
.00
IM
In
tern
atio
na
l Co
re E
qu
ity (
SA
+C
F)
Me
dia
n1
01
.39
85
.80
7.9
70
.96
We
llin
gto
n Q
ua
lity
Gro
wth
In
tern
atio
na
l1
06
.68
72
.36
12
.57
0.9
3
W
elli
ng
ton
In
tl Q
ua
lity
Gro
wth
Po
licy
10
0.0
01
00
.00
6.7
51
.00
IM
In
tern
atio
na
l La
rge
Ca
p G
row
th E
qu
ity (
SA
+C
F)
Me
dia
n9
7.3
49
1.0
17
.33
0.9
5
Inte
rna
tio
na
l S
ma
ll C
ap
Eq
uit
y M
an
ag
ers
AR
I In
tern
atio
na
l Sm
all
Ca
p9
3.8
77
8.1
39
.94
0.9
5
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p1
00
.00
10
0.0
08
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1.0
0
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
10
0.7
59
5.7
38
.86
0.9
5
M
SC
I A
C W
orl
d e
x U
SA
Sm
all
Ca
p1
00
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10
0.0
08
.12
1.0
0
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
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Me
dia
n1
00
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78
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11
.54
0.9
4
Wa
satc
h In
tern
atio
na
l Sm
all
Ca
p9
8.2
57
2.1
11
1.7
40
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M
SC
I A
C W
orl
d e
x U
SA
Sm
all
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p1
00
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10
0.0
08
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0
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
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Me
dia
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00
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78
.00
11
.54
0.9
4
We
llin
gto
n In
tern
atio
na
l Sm
all
Ca
p1
05
.94
93
.40
13
.24
0.9
6
W
elli
ng
ton
In
tl S
ma
ll C
ap
Po
licy
10
0.0
01
00
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10
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0
IM
In
tern
atio
na
l Sm
all
Ca
p E
qu
ity (
SA
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Me
dia
n9
8.7
49
3.5
61
1.5
40
.96
Mu
lti-
Sta
tis
tic
s
To
tal A
cti
ve
In
tern
ati
on
al E
qu
ity
As
of
De
ce
mb
er
31
, 2
01
6
Du
e t
o la
ck o
f h
isto
ry in
act
ua
l clie
nt
po
rtfo
lio,
ma
na
ge
r co
mp
osi
te d
ata
ha
s b
ee
n u
sed
fo
r A
llia
nz
Intl,
We
llin
g Q
ua
lity
Gro
wth
, A
RI In
tl, E
po
ch S
C, W
asa
tch
SC
, a
nd
We
llin
gto
n S
C.
74
Ac
tua
l C
orr
ela
tio
n M
atr
ix
All
ian
z In
tern
ati
on
al
Ca
us
ew
ay
Inte
rna
tio
na
lW
ell
ing
ton
Qu
ali
tyG
row
th I
nte
rna
tio
na
lA
RI
Inte
rna
tio
na
lS
ma
ll C
ap
Ep
oc
h S
ma
ll C
ap
Inte
rna
tio
na
lW
as
atc
h I
nte
rna
tio
na
lS
ma
ll C
ap
We
llin
gto
nIn
tern
ati
on
al
Sm
all
Ca
p
Alli
an
z In
tern
atio
na
l1
.00
Ca
use
wa
y In
tern
atio
na
l0
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1.0
0
We
llin
gto
n Q
ua
lity
Gro
wth
In
tern
atio
na
l0
.86
0.8
71
.00
AR
I In
tern
atio
na
l Sm
all
Ca
p0
.92
0.9
30
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1.0
0
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
0.8
90
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0.8
50
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1.0
0
Wa
satc
h In
tern
atio
na
l Sm
all
Ca
p0
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0.8
10
.88
0.8
20
.86
1.0
0
We
llin
gto
n In
tern
atio
na
l Sm
all
Ca
p0
.86
0.8
60
.85
0.9
00
.94
0.8
91
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Ac
tua
l C
orr
ela
tio
n M
atr
ix
To
tal In
tern
ati
on
al E
qu
ity
5 Y
ea
rs E
nd
ing
De
ce
mb
er
31
, 2
01
6
Du
e t
o la
ck o
f h
isto
ry in
act
ua
l clie
nt
po
rtfo
lio,
ma
na
ge
r co
mp
osi
te d
ata
ha
s b
ee
n u
sed
fo
r A
llia
nz
Intl,
We
llin
g Q
ua
lity
Gro
wth
, A
RI In
tl, E
po
ch S
C, W
asa
tch
SC
, a
nd
We
llin
gto
n S
C.
75
Ris
k a
nd
Re
turn
5 Y
ea
rs
Ca
use
wa
y I
nte
rna
tion
al
Alli
an
z I
nte
rna
tion
al
We
llin
gto
n Q
ua
lity G
row
th I
nte
rna
tion
al
AR
I In
tern
atio
na
l Sm
all
Ca
p
Ep
och
Sm
all
Ca
p I
nte
rna
tion
al
SS
GA
Em
erg
ing
Ma
rke
ts S
ma
ll C
ap
Wa
sa
tch
In
tern
atio
na
l Sm
all
Ca
p
We
llin
gto
n I
nte
rna
tion
al S
ma
ll C
ap
To
tal I
nte
rna
tion
al E
qu
ity C
om
po
site
To
tal I
nte
rna
tion
al E
qu
ity P
olic
y
0.0
1.5
3.0
4.5
6.0
7.5
9.0
10
.5
12
.0
13
.5
15
.0
16
.5
Return (%)
11
.81
2.0
12
.21
2.4
12
.61
2.8
13
.01
3.2
13
.41
3.6
13
.81
4.0
14
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4.4
Ris
k (
Sta
nd
ard
De
via
tio
n %
)
To
tal I
nte
rna
tion
al E
qu
ity P
olic
y
To
tal I
nte
rna
tion
al E
qu
ity C
om
po
site
We
llin
gto
n I
nte
rna
tion
al S
ma
ll C
ap
Wa
satc
h I
nte
rna
tion
al S
ma
ll C
ap
Ep
och
Sm
all
Ca
p I
nte
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al
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I In
tern
atio
na
l Sm
all
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p
We
llin
gto
n Q
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lity
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wth
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tern
atio
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l
Alli
an
z In
tern
atio
na
l
Ca
use
wa
y In
tern
atio
na
l
Ris
k a
nd
Re
turn
To
tal In
tern
ati
on
al E
qu
ity
5 Y
ea
rs E
nd
ing
De
ce
mb
er
31
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01
6
Ca
lcu
latio
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ase
d o
n m
on
thly
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rio
dic
ity.
Du
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ck o
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l clie
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r co
mp
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te d
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ee
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sed
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llin
g Q
ua
lity
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po
ch S
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A E
me
rgin
g,
Wa
satc
h S
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nd
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llin
gto
n S
C.
76
TO
TA
L F
IXE
D I
NC
OM
E
77
De
ce
mb
er
31
, 2
01
6 :
$3
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6,8
53
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1
Lo
om
is S
ayl
es
Co
re P
lus
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rd A
bb
ett
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re P
lus
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Ma
cka
y S
hie
lds
Hig
h Y
ield
9.5
%
Lo
rd A
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Hig
h Y
ield
9.5
%
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om
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ayl
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h Y
ield
8.9
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ctiv
e D
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cka
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re P
lus
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As
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t A
llo
ca
tio
n B
y M
an
ag
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To
tal F
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d In
co
me
As
of
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31
, 2
01
6
78
Co
mp
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tiv
e P
erf
orm
an
ce
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ixe
d I
nc
om
e S
um
ma
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s o
f D
ec
em
be
r 3
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Co
re F
ixe
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nco
me
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re P
lus
Fix
ed
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com
eA
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e D
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tion
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ed
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com
e
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h Y
ield
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ed
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l Fix
ed
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com
e C
om
po
site
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nco
me
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licy
0.0
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24
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Return (%)
10
YR
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R3
YR
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RQ
TD
4.4
2.3
3.2
3.0
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9.3
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YR
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re F
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re P
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e6
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Act
ive
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0.3
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Hig
h Y
ield
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ed
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com
eN
/A8
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5.7
1.8
To
tal F
ixe
d I
nco
me
Co
mp
osi
te7
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.5
To
tal F
ixe
d I
nco
me
Po
licy
4.4
2.3
3.2
3.0
-2.6
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
ixe
d In
co
me
As
of
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31
, 2
01
6
Re
turn
s a
re e
xpre
sse
d a
s p
erc
en
tag
es.
79
Co
mp
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tiv
e P
erf
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an
ce
Tra
ilin
g R
etu
rns
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YR
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YR
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RQ
TD
To
tal F
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d I
nc
om
e C
om
po
sit
e7
.17
4.7
74
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7.7
7-2
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T
ota
l Fix
ed
In
com
e P
olic
y4
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2.3
13
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3.0
4-2
.61
D
iffe
ren
ce2
.79
2.4
61
.34
4.7
30
.08
To
tal F
ixe
d I
nc
om
e C
ore
Co
mp
os
ite
6.1
33
.75
4.1
04
.98
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0
T
ota
l Fix
ed
In
com
e C
ore
Po
licy
4.3
82
.31
3.1
63
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-2.6
1
D
iffe
ren
ce1
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1.4
40
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1.9
4-1
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To
tal F
ixe
d In
com
e C
ore
Plu
s C
om
po
site
6.1
84
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3.3
45
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6
T
ota
l Fix
ed
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com
e C
ore
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s P
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y4
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2.3
13
.16
3.0
4-2
.61
D
iffe
ren
ce1
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1.7
20
.18
2.7
70
.45
To
tal F
ixe
d In
com
e A
ctiv
e D
ura
tion
Co
mp
osi
te6
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4.2
99
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0.3
0-1
4.2
5
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
52
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2.7
21
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-3.8
4
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iffe
ren
ce2
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2.2
46
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3-1
0.4
1
To
tal F
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d I
nc
om
e H
igh
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ld C
om
po
sit
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51
5.6
81
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T
ota
l Fix
ed
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com
e H
igh
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ld P
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y7
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54
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17
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8
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iffe
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1
Co
mp
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e P
erf
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tal F
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co
me
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mp
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s o
f D
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em
be
r 3
1, 2
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6
Re
turn
s fo
r p
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od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
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etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
80
Co
mp
ara
tiv
e P
erf
orm
an
ce
Tra
ilin
g R
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rns
10
YR
5 Y
R3
YR
1 Y
RQ
TD
To
tal F
ixe
d I
nc
om
e C
ore
Plu
s C
om
po
sit
e6
.18
4.0
33
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5.8
1-2
.16
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
2.3
13
.16
3.0
4-2
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D
iffe
ren
ce1
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1.7
20
.18
2.7
70
.45
Lo
om
is S
ayl
es
Co
re P
lus
7.0
5(1
)4
.54
(2)
3.7
5(2
4)
7.4
8(2
)-2
.13
(7)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)-2
.61
(27
)
D
iffe
ren
ce2
.67
2.2
30
.59
4.4
40
.48
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
-2.8
0
Lo
rd A
bb
ett C
ore
Plu
s5
.79
(3)
3.8
6(8
)3
.81
(20
)4
.82
(7)
-2.3
9(9
)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)-2
.61
(27
)
D
iffe
ren
ce1
.41
1.5
50
.65
1.7
80
.22
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
-2.8
0
Ma
cka
y S
hie
lds
Co
re P
lus
5.7
9(3
)3
.66
(11
)2
.43
(10
0)
5.1
5(6
)-1
.95
(6)
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y4
.38
(88
)2
.31
(87
)3
.16
(74
)3
.04
(53
)-2
.61
(27
)
D
iffe
ren
ce1
.41
1.3
5-0
.73
2.1
10
.66
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
4.8
32
.82
3.3
33
.10
-2.8
0
To
tal F
ixe
d I
nc
om
e A
cti
ve
Du
rati
on
Co
mp
os
ite
6.8
04
.29
9.2
70
.30
-14
.25
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
52
.05
2.7
21
.73
-3.8
4
D
iffe
ren
ce2
.55
2.2
46
.55
-1.4
3-1
0.4
1
Ho
isin
gto
n A
ctiv
e D
ura
tion
7.3
4(1
0)
2.4
5(3
2)
9.2
7(8
)0
.30
(98
)-1
4.2
5(9
1)
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
4.2
5(3
8)
2.0
5(3
4)
2.7
2(4
0)
1.7
3(1
4)
-3.8
4(6
3)
D
iffe
ren
ce3
.09
0.4
06
.55
-1.4
3-1
0.4
1
IM
U.S
. G
ove
rnm
en
t B
on
ds
(SA
+C
F)
Me
dia
n3
.70
1.2
81
.90
1.3
7-2
.20
To
tal F
ixe
d I
nc
om
e H
igh
Yie
ld C
om
po
sit
eN
/A8
.27
5.5
51
5.6
81
.77
T
ota
l Fix
ed
In
com
e H
igh
Yie
ld P
olic
y7
.34
7.3
54
.72
17
.49
1.8
8
D
iffe
ren
ceN
/A0
.92
0.8
3-1
.81
-0.1
1
Lo
om
is S
ayl
es
Hig
h Y
ield
N/A
8.0
9(1
9)
4.3
4(5
4)
14
.48
(45
)0
.84
(88
)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
1.8
8(3
6)
D
iffe
ren
ceN
/A0
.74
-0.3
8-3
.01
-1.0
4
IM
U.S
. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
1.5
8
Lo
rd A
bb
ett H
igh
Yie
ldN
/A8
.85
(7)
6.0
8(7
)1
5.6
5(2
8)
2.5
8(1
7)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
1.8
8(3
6)
D
iffe
ren
ceN
/A1
.50
1.3
6-1
.84
0.7
0
IM U
.S.
Hig
h Y
ield
Bo
nd
s (S
A+
CF
) M
ed
ian
7.2
47
.13
4.4
61
4.0
71
.58
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
ixe
d In
co
me
As
of
De
ce
mb
er
31
, 2
01
6
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
81
Co
mp
ara
tiv
e P
erf
orm
an
ce
To
tal F
ixe
d In
co
me
As
of
De
ce
mb
er
31
, 2
01
6
10
YR
5 Y
R3
YR
1 Y
RQ
TD
Ma
cka
y S
hie
lds
Hig
h Y
ield
N/A
7.6
8(3
0)
5.9
5(9
)1
6.8
7(1
7)
1.8
6(3
7)
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II7
.34
(49
)7
.35
(41
)4
.72
(39
)1
7.4
9(1
3)
1.8
8(3
6)
D
iffe
ren
ceN
/A0
.33
1.2
3-0
.62
-0.0
2
IM
U.S
. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n7
.24
7.1
34
.46
14
.07
1.5
8
Re
turn
s fo
r p
eri
od
s g
rea
ter
tha
n o
ne
ye
ar
are
an
nu
aliz
ed
.R
etu
rns
are
exp
ress
ed
as
pe
rce
nta
ge
s.
82
Fix
ed
In
co
me
Sta
tis
tic
s -
Tra
ilin
g F
ive
Ye
ars
Up
Ma
rke
tC
ap
ture
Do
wn
Ma
rke
tC
ap
ture
Re
turn
Ac
tua
lC
orr
ela
tio
n
Co
re F
ixe
d I
nc
om
e
Lo
om
is S
ayl
es
Co
re P
lus
14
1.2
89
5.9
24
.54
0.7
7
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y1
00
.00
10
0.0
02
.31
1.0
0
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
10
5.6
19
3.4
62
.82
0.9
8
Lo
rd A
bb
ett C
ore
Plu
s1
15
.01
72
.92
3.8
60
.92
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y1
00
.00
10
0.0
02
.31
1.0
0
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
10
5.6
19
3.4
62
.82
0.9
8
Ma
cka
y S
hie
lds
Co
re P
lus
11
0.3
37
0.9
23
.66
0.7
9
T
ota
l Fix
ed
In
com
e C
ore
Plu
s P
olic
y1
00
.00
10
0.0
02
.31
1.0
0
IM
U.S
. B
roa
d M
ark
et
Co
re F
ixe
d I
nco
me
(S
A+
CF
) M
ed
ian
10
5.6
19
3.4
62
.82
0.9
8
Ac
tiv
e D
ura
tio
n F
ixe
d I
nc
om
e
Ho
isin
gto
n A
ctiv
e D
ura
tion
33
6.5
04
60
.85
2.4
50
.88
T
ota
l Fix
ed
In
com
e A
ctiv
e D
ura
tion
Po
licy
10
0.0
01
00
.00
2.0
51
.00
IM
U.S
. G
ove
rnm
en
t B
on
ds
(SA
+C
F)
Me
dia
n6
2.0
46
5.2
21
.28
0.9
0
Hig
h Y
ield
Fix
ed
In
co
me
Lo
om
is S
ayl
es
Hig
h Y
ield
11
3.1
61
17
.16
8.0
90
.94
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II1
00
.00
10
0.0
07
.35
1.0
0
IM
U.S
. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n9
4.2
98
5.7
97
.13
0.9
7
Lo
rd A
bb
ett H
igh
Yie
ld1
02
.99
79
.41
8.8
50
.98
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II1
00
.00
10
0.0
07
.35
1.0
0
IM
U.S
. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n9
4.2
98
5.7
97
.13
0.9
7
Ma
cka
y S
hie
lds
Hig
h Y
ield
92
.00
74
.71
7.6
80
.98
B
ofA
Me
rrill
Lyn
ch H
igh
Yie
ld M
ast
er
II1
00
.00
10
0.0
07
.35
1.0
0
IM
U.S
. H
igh
Yie
ld B
on
ds
(SA
+C
F)
Me
dia
n9
4.2
98
5.7
97
.13
0.9
7
Mu
lti-
Sta
tis
tic
s
To
tal F
ixe
d In
co
me
As
of
De
ce
mb
er
31
, 2
01
6
83
Ac
tua
l C
orr
ela
tio
n M
atr
ix
Lo
om
is S
ay
les
Co
reP
lus
Lo
rd A
bb
ett
Co
re P
lus
Ma
ck
ay
Sh
ield
s C
ore
Plu
sH
ois
ing
ton
Ac
tiv
eD
ura
tio
nL
oo
mis
Sa
yle
s H
igh
Yie
ldL
ord
Ab
be
tt H
igh
Yie
ldM
ac
ka
y S
hie
lds
Hig
hY
ield
Lo
om
is S
ayl
es
Co
re P
lus
1.0
0
Lo
rd A
bb
ett C
ore
Plu
s0
.93
1.0
0
Ma
cka
y S
hie
lds
Co
re P
lus
0.9
50
.94
1.0
0
Ho
isin
gto
n A
ctiv
e D
ura
tion
0.5
20
.69
0.5
51
.00
Lo
om
is S
ayl
es
Hig
h Y
ield
0.7
60
.58
0.7
2-0
.10
1.0
0
Lo
rd A
bb
ett H
igh
Yie
ld0
.74
0.5
40
.70
-0.1
00
.94
1.0
0
Ma
cka
y S
hie
lds
Hig
h Y
ield
0.7
80
.61
0.7
50
.00
0.9
30
.96
1.0
0
Ac
tua
l C
orr
ela
tio
n M
atr
ix
To
tal F
ixe
d In
co
me
5 Y
ea
rs E
nd
ing
De
ce
mb
er
31
, 2
01
6
84
Ris
k a
nd
Re
turn
5 Y
ea
rs
Lo
om
is S
ayle
s C
ore
Plu
sL
ord
Ab
be
tt C
ore
Plu
sM
acka
y S
hie
lds C
ore
Plu
sH
ois
ing
ton
Activ
e D
ura
tion
Lo
om
is S
ayle
s H
igh
Yie
ld
Lo
rd A
bb
ett
Hig
h Y
ield
Ma
cka
y S
hie
lds H
igh
Yie
ldT
ota
l Fix
ed
In
co
me
Co
mp
osite
To
tal F
ixe
d I
nco
me
Po
licy
0.8
1.6
2.4
3.2
4.0
4.8
5.6
6.4
7.2
8.0
8.8
9.6
10
.4
Return (%)
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10
.01
1.0
12
.01
3.0
14
.01
5.0
16
.0R
isk
(S
tan
da
rd D
ev
iati
on
%)
To
tal F
ixe
d I
nco
me
Po
licy
To
tal F
ixe
d I
nco
me
Co
mp
osi
te
Ma
cka
y S
hie
lds
Hig
h Y
ield
Lo
rd A
bb
ett
Hig
h Y
ield
Lo
om
is S
ayl
es
Hig
h Y
ield
Ho
isin
gto
n A
ctiv
e D
ura
tion
Ma
cka
y S
hie
lds
Co
re P
lus
Lo
rd A
bb
ett
Co
re P
lus
Lo
om
is S
ayl
es
Co
re P
lus
Ris
k a
nd
Re
turn
To
tal F
ixe
d In
co
me
5 Y
ea
rs E
nd
ing
De
ce
mb
er
31
, 2
01
6
Ca
lcu
latio
n b
ase
d o
n m
on
thly
pe
rio
dic
ity.
85
Fin
an
cia
l R
ec
on
cil
iati
on
Ma
rke
t V
alu
e1
0/0
1/2
01
6N
et
Flo
ws
Oth
er
Ex
pe
ns
es
Inc
om
eM
ark
et
Va
lue
12
/31
/20
16
To
tal F
un
d1
4,2
44
,47
8,7
62
-13
,17
0,7
19
-13
,39
1,0
68
84
,72
9,5
43
14
,45
9,6
25
,63
2
To
tal E
qu
ity
Co
mp
os
ite
8,0
83
,18
4,9
44
-55
,23
1,6
18
-9,7
33
,92
62
6,5
02
,30
88
,27
2,2
13
,68
9
To
tal D
om
es
tic
Eq
uit
y C
om
po
sit
e5
,79
4,8
45
,14
8-5
8,0
76
,68
1-6
,71
1,3
95
20
,63
4,7
14
6,0
50
,95
5,6
05
To
tal D
om
es
tic
La
rge
Ca
p E
qu
ity
Co
mp
os
ite
1,6
40
,56
6,1
42
-39
,63
2,6
06
-88
7,4
28
8,2
54
,82
21
,67
8,7
78
,42
0
Ho
tch
kis
& W
iley
La
rge
Ca
p V
alu
e5
70
,33
0,8
86
-27
,29
6,6
68
-41
2,4
37
3,1
15
,76
95
98
,35
3,3
16
Sa
wg
rass
La
rge
Ca
p G
row
th5
70
,30
3,9
77
-15
,05
0,1
73
-47
4,9
91
2,4
24
,81
85
61
,37
9,6
33
SS
GA
Eq
ua
l We
igh
ted
Pa
ssiv
e2
13
,58
2,0
68
1,1
26
,46
3-
1,1
26
,46
32
21
,70
4,4
69
No
rth
ern
Tru
st C
ap
We
igh
ted
Pa
ssiv
e2
86
,34
9,2
11
1,5
87
,77
2-
1,5
87
,77
22
97
,34
1,0
02
To
tal D
om
es
tic
All
Ca
p E
qu
ity
Co
mp
os
ite
52
2,0
26
,74
62
,29
9,6
74
-55
5,5
59
2,8
55
,23
35
49
,16
6,6
97
Ep
och
All
Ca
p5
22
,02
6,7
46
2,2
99
,67
4-5
55
,55
92
,85
5,2
33
54
9,1
66
,69
7
To
tal D
om
es
tic
Mid
Ca
p E
qu
ity
Co
mp
os
ite
2,0
30
,77
9,1
21
-4,1
39
,22
4-2
,05
5,4
20
5,9
16
,19
62
,11
6,6
16
,84
7
Fro
ntie
r M
id C
ap
Gro
wth
51
4,5
95
,31
92
29
,55
4-7
14
,24
69
43
,80
05
13
,43
6,7
18
We
llin
gto
n M
id C
ap
Gro
wth
47
1,6
80
,50
35
00
,50
9-2
94
,99
07
95
,49
94
67
,73
1,8
66
AJO
Mid
Ca
p5
29
,84
4,2
54
1,9
51
,29
1-4
03
,45
62
,35
4,7
47
56
5,2
14
,89
6
Ho
tch
kis
& W
iley
Mid
Ca
p V
alu
e5
14
,65
9,0
45
-6,8
20
,57
8-6
42
,72
81
,82
2,1
50
57
0,2
33
,36
7
To
tal D
om
es
tic
Sm
all
Ca
p E
qu
ity
Co
mp
os
ite
1,6
01
,47
3,1
39
-16
,60
4,5
25
-3,2
12
,98
83
,60
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1,7
06
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Sh
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Sm
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Ca
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01
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3,9
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91
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74
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36
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5
Ge
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ma
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23
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11
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22
40
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Wa
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Co
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Fro
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18
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24
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Ne
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ma
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39
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62
4,9
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15
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8
To
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Eq
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62
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To
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La
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71
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5
Alli
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98
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6,7
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55
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32
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70
3,5
36
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3
Ca
use
wa
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tern
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na
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20
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8,7
37
71
7,2
27
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20
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83
22
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No
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Tru
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15
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6
We
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In
tern
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22
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10
18
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49
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63
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27
29
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0
To
tal In
tern
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al
Sm
all
Ca
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qu
ity
Co
mp
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94
5,9
68
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35
6,6
98
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91
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6,9
17
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94
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9
AR
I S
ma
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77
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14
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36
17
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9
Ep
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Sm
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18
8,9
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83
78
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07
19
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01
83
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3,0
32
SS
GA
Em
erg
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Ma
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ma
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17
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61
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16
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Fin
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n
To
tal F
un
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1 Q
ua
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nd
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De
ce
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31
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01
6
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6
6
Fin
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To
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31
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Ma
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16
Wa
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09
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27
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70
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13
18
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2
We
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n S
ma
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In
tern
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96
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8,6
59
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4,3
21
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19
7,2
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18
7,4
60
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9
To
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e C
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53
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42
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38
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2,2
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31
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0,2
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To
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e C
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Co
mp
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27
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46
17
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61
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68
18
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4,4
29
2,2
30
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34
To
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Plu
s C
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sit
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24
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31
5,7
82
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4-8
40
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81
6,6
22
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21
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0,7
76
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3
Lo
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re P
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65
7,4
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55
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5,5
19
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43
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Lo
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57
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24
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88
64
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15
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8
Ma
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re P
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63
8,4
52
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55
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78
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20
6,2
06
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86
25
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0,9
60
To
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nc
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Du
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37
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31
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97
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1,8
51
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73
20
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7,9
61
Ho
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37
3,5
30
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31
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0,0
97
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1,3
90
1,8
51
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73
20
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7,9
61
To
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e H
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51
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98
12
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77
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13
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5,8
20
86
5,9
28
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7
Lo
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27
5,1
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83
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3,5
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22
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62
77
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21
Lo
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88
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4,3
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69
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14
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29
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29
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6
Ma
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28
8,4
20
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14
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93
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To
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2,9
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1,4
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6,8
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4,8
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24
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77
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9,9
51
To
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PIM
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10
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46
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12
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To
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32
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4
To
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79
5,3
35
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67
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93
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08
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4,8
63
81
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13
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4
AE
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ate
26
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95
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27
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22
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8
He
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27
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23
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28
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7
L&
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24
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78
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10
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54
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6,9
59
To
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23
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72
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52
58
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30
An
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Du
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Gre
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La
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6
Am
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Re
alty
27
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39
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96
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53
3,5
53
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7
Sta
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33
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97
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25
87
87
Fin
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31
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12
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16
To
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56
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21
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Le
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38
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2,7
46
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85
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47
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1
Fra
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71
7,3
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8,0
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9-5
87
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42
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3,9
08
To
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Lim
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1,0
18
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3,4
88
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4-1
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3,7
78
15
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2,2
92
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54
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12
Ch
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26
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24
38
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75
AR
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22
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Cu
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36
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6,9
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To
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Fin
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To
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70
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46
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73
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15
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5
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12
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1
To
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79
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4
AE
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ate
26
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He
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27
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L&
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24
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10
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54
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59
To
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35
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5,7
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Am
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Re
alty
27
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75
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7
An
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Du
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Gre
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32
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34
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To
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56
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77
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21
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38
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Fra
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Eq
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71
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4,1
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33
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47
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3,9
08
To
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ter
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Co
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Ch
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26
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36
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22
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21
To
tal A
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Co
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2,9
75
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1,4
45
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43
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4,8
70
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3,5
90
3,0
77
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9,9
51
Fin
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To
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Qu
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To
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Rep
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Def
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and
Des
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Activ
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sign
ated
ben
chm
ark
retu
rn o
ver a
spe
cifie
d tim
e pe
riod.
A lph
a- A
mea
sure
of t
he d
iffer
ence
bet
wee
n a
portf
olio
's a
ctua
l per
form
ance
and
its
expe
cted
retu
rn b
ased
on
its le
vel o
f ris
k as
det
erm
ined
by
beta
. It d
eter
min
es th
e po
rtfol
io's
no
n-sy
stem
ic re
turn
, or i
ts h
isto
rical
per
form
ance
not
exp
lain
ed b
y m
ovem
ents
of t
he m
arke
t.
Bet
a- A
mea
sure
of t
he s
ensi
tivity
of a
por
tfolio
to th
e m
ovem
ents
in th
e m
arke
t. It
is a
mea
sure
of t
he p
ortfo
lio's
sys
tem
atic
risk
.
Con
sist
ency
- T
he p
erce
ntag
e of
qua
rters
that
a p
rodu
ct a
chie
ved
a ra
te o
f ret
urn
high
er th
an th
at o
f its
ben
chm
ark.
Hig
her c
onsi
sten
cy in
dica
tes
the
man
ager
has
con
tribu
ted
mor
e to
the
prod
uct’s
per
form
ance
.
Dis
trib
uted
to P
aid
In (D
PI)
- The
ratio
of m
oney
dis
tribu
ted
to L
imite
d Pa
rtner
s by
the
fund
, rel
ativ
e to
con
tribu
tions
. It
is c
alcu
late
d by
div
idin
g cu
mul
ativ
e di
strib
utio
ns b
y pa
id in
cap
ital.
Thi
s m
ultip
le
show
s th
e in
vest
or h
ow m
uch
mon
ey th
ey g
ot b
ack.
It i
s a
good
mea
sure
for e
valu
atin
g a
fund
late
r in
its li
fe b
ecau
se th
ere
are
mor
e di
strib
utio
ns to
mea
sure
aga
inst
.
Dow
n M
arke
t Cap
ture
- T
he ra
tio o
f ave
rage
por
tfolio
per
form
ance
ove
r the
des
igna
ted
benc
hmar
k du
ring
perio
ds o
f neg
ativ
e re
turn
s. A
low
er v
alue
indi
cate
s be
tter p
rodu
ct p
erfo
rman
ce
Dow
nsid
e R
isk
- A m
easu
re s
imila
r to
stan
dard
dev
iatio
n th
at u
tiliz
es o
nly
the
nega
tive
mov
emen
ts o
f the
retu
rn s
erie
s. It
is c
alcu
late
d by
taki
ng th
e st
anda
rd d
evia
tion
of th
e ne
gativ
e qu
arte
rly s
et o
f ret
urns
. A h
ighe
r fac
tor i
s in
dica
tive
of a
risk
ier p
rodu
ct.
Exce
ss R
etur
n - A
rithm
etic
diff
eren
ce b
etw
een
the
man
ager
’s p
erfo
rman
ce a
nd th
e ris
k-fre
e re
turn
ove
r a s
peci
fied
time
perio
d.
Exce
ss R
isk
- A m
easu
re o
f the
sta
ndar
d de
viat
ion
of a
por
tfolio
's p
erfo
rman
ce re
lativ
e to
the
risk
free
retu
rn.
Info
rmat
ion
Rat
io
- Thi
s ca
lcul
ates
the
valu
e-ad
ded
cont
ribut
ion
of th
e m
anag
er a
nd is
der
ived
by
divi
ding
the
activ
e ra
te o
f ret
urn
of th
e po
rtfol
io b
y th
e tra
ckin
g er
ror.
The
high
er th
e In
form
atio
n R
atio
, the
mor
e th
e m
anag
er h
as a
dded
val
ue to
the
portf
olio
.
Publ
ic M
arke
t Equ
ival
ent (
PME)
- D
esig
ns a
set
of a
naly
ses
used
in th
e Pr
ivat
e Eq
uity
Indu
stry
to e
valu
ate
the
perfo
rman
ce o
f a P
rivat
e Eq
uity
Fun
d ag
ains
t a p
ublic
ben
chm
ark
or in
dex.
R-S
quar
ed
- The
per
cent
age
of a
por
tfolio
's p
erfo
rman
ce th
at c
an b
e ex
plai
ned
by th
e be
havi
or o
f the
app
ropr
iate
ben
chm
ark.
A h
igh
R-S
quar
ed m
eans
the
portf
olio
's p
erfo
rman
ce h
as
hist
oric
ally
mov
ed in
the
sam
e di
rect
ion
as th
e ap
prop
riate
ben
chm
ark.
Ret
urn
- Com
poun
ded
rate
of r
etur
n fo
r the
per
iod.
Shar
pe R
atio
- R
epre
sent
s th
e ex
cess
rate
of r
etur
n ov
er th
e ris
k fre
e re
turn
div
ided
by
the
stan
dard
dev
iatio
n of
the
exce
ss re
turn
. The
resu
lt is
an
abso
lute
rate
of r
etur
n pe
r uni
t of r
isk.
A
high
er v
alue
dem
onst
rate
s be
tter h
isto
rical
risk
-adj
uste
d pe
rform
ance
.
Stan
dard
Dev
iatio
n - A
sta
tistic
al m
easu
re o
f the
rang
e of
a p
ortfo
lio's
per
form
ance
. It r
epre
sent
s th
e va
riabi
lity
of re
turn
s ar
ound
the
aver
age
retu
rn o
ver a
spe
cifie
d tim
e pe
riod.
Tota
l Val
ue to
Pai
d In
(TVP
I) - T
he ra
tio o
f the
cur
rent
val
ue o
f rem
aini
ng in
vest
men
ts w
ithin
a fu
nd, p
lus
the
tota
l val
ue o
f all
dist
ribut
ions
to d
ate,
rela
tive
to th
e to
tal a
mou
nt o
f cap
ital p
aid
into
the
fund
to
dat
e. I
t is
a go
od m
easu
re o
f per
form
ance
bef
ore
the
end
of a
fund
’s li
fe
Trac
king
Err
or
- Thi
s is
a m
easu
re o
f the
sta
ndar
d de
viat
ion
of a
por
tfolio
's re
turn
s in
rela
tion
to th
e pe
rform
ance
of i
ts d
esig
nate
d m
arke
t ben
chm
ark.
Trey
nor R
atio
- Sim
ilar t
o Sh
arpe
ratio
but
util
izes
bet
a ra
ther
than
exc
ess
risk
as d
eter
min
ed b
y st
anda
rd d
evia
tion.
It is
cal
cula
ted
by ta
king
the
exce
ss ra
te o
f ret
urn
abov
e th
e ris
k fre
e ra
te d
ivid
ed b
y be
ta to
der
ive
the
abso
lute
rate
of r
etur
n pe
r uni
t of r
isk.
A h
ighe
r val
ue in
dica
tes
a pr
oduc
t has
ach
ieve
d be
tter h
isto
rical
risk
-adj
uste
d pe
rform
ance
.
Up
Mar
ket C
aptu
re
- The
ratio
of a
vera
ge p
ortfo
lio p
erfo
rman
ce o
ver t
he d
esig
nate
d be
nchm
ark
durin
g pe
riods
of p
ositi
ve re
turn
s. A
hig
her v
alue
indi
cate
s be
tter p
rodu
ct p
erfo
rman
ce.
90
Dis
clos
ures
AndC
o co
mpi
led
this
repo
rt fo
r the
sol
e us
e of
the
clie
nt fo
r whi
ch it
was
pre
pare
d. A
ndC
o is
resp
onsi
ble
for e
valu
atin
g th
e pe
rform
ance
resu
lts o
f the
Tot
al F
und
alon
g w
ith th
e in
vest
men
t adv
isor
s by
com
parin
g th
eir p
erfo
rman
ce w
ith in
dice
s an
d ot
her r
elat
ed p
eer u
nive
rse
data
that
is d
eem
ed a
ppro
pria
te.
AndC
o us
es th
e re
sults
from
this
eva
luat
ion
to m
ake
obse
rvat
ions
and
reco
mm
enda
tions
to th
e cl
ient
.
AndC
o us
es ti
me-
wei
ghte
d ca
lcul
atio
ns w
hich
are
foun
ded
on s
tand
ards
reco
mm
ende
d by
the
CFA
Inst
itute
. Th
e ca
lcul
atio
ns a
nd v
alue
s sh
own
are
base
d on
info
rmat
ion
that
is re
ceiv
ed fr
om c
usto
dian
s. A
ndC
o an
alyz
es tr
ansa
ctio
ns a
s in
dica
ted
on th
e cu
stod
ian
stat
emen
ts a
nd re
view
s th
e cu
stod
ial m
arke
t val
ues
of th
e po
rtfol
io.
As a
resu
lt, th
is p
rovi
des
AndC
o w
ith a
reas
onab
le b
asis
that
the
inve
stm
ent i
nfor
mat
ion
pres
ente
d is
free
from
mat
eria
l mis
stat
emen
t. T
his
met
hodo
logy
of e
valu
atin
g an
d m
easu
ring
perfo
rman
ce p
rovi
des
AndC
o w
ith a
pra
ctic
al fo
unda
tion
for o
ur o
bser
vatio
ns a
nd re
com
men
datio
ns.
Not
hing
cam
e to
ou
r atte
ntio
n th
at w
ould
cau
se A
ndC
o to
bel
ieve
that
the
info
rmat
ion
pres
ente
d is
sig
nific
antly
mis
stat
ed.
This
per
form
ance
repo
rt is
bas
ed o
n da
ta o
btai
ned
by th
e cl
ient
’s c
usto
dian
(s),
inve
stm
ent f
und
adm
inis
trato
r, or
oth
er s
ourc
es b
elie
ved
to b
e re
liabl
e. W
hile
thes
e so
urce
s ar
e be
lieve
d to
be
relia
ble,
the
data
pr
ovid
ers
are
resp
onsi
ble
for t
he a
ccur
acy
and
com
plet
enes
s of
thei
r sta
tem
ents
. Clie
nts
are
enco
urag
ed to
com
pare
the
reco
rds
of th
eir c
usto
dian
(s) t
o en
sure
this
repo
rt fa
irly
and
accu
rate
ly re
flect
s th
eir v
ario
us
asse
t pos
ition
s.
The
stra
tegi
es li
sted
may
not
be
suita
ble
for a
ll in
vest
ors.
We
belie
ve th
e in
form
atio
n pr
ovid
ed h
ere
is re
liabl
e, b
ut d
o no
t war
rant
its
accu
racy
or c
ompl
eten
ess.
Pas
t per
form
ance
is n
ot a
n in
dica
tion
of fu
ture
pe
rform
ance
. An
y in
form
atio
n co
ntai
ned
in th
is re
port
is fo
r inf
orm
atio
nal p
urpo
ses
only
and
sho
uld
not b
e co
nstru
ed to
be
an o
ffer t
o bu
y or
sel
l any
sec
uriti
es, i
nves
tmen
t con
sulti
ng, o
r inv
estm
ent m
anag
emen
t se
rvic
es.
Addi
tiona
l inf
orm
atio
n in
clud
ed in
this
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y fro
m in
dex
data
base
s, p
ublic
eco
nom
ic s
ourc
es a
nd th
e m
anag
ers
them
selv
es.
This
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y Bl
oom
berg
Bar
clay
s.
Bloo
mbe
rg B
arcl
ays
Inde
x da
ta p
rovi
ded
by w
ay o
f Bar
clay
s Li
ve.
This
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y St
anda
rd a
nd P
oor’s
. N
othi
ng c
onta
ined
with
in a
ny d
ocum
ent,
adve
rtise
men
t or p
rese
ntat
ion
from
S&P
Indi
ces
cons
titut
es a
n of
fer o
f ser
vice
s in
juris
dict
ions
whe
re
S&P
Indi
ces
does
not
hav
e th
e ne
cess
ary
licen
ses.
All
info
rmat
ion
prov
ided
by
S&P
Indi
ces
is im
pers
onal
and
is n
ot ta
ilore
d to
the
need
s of
any
per
son,
ent
ity o
r gro
up o
f per
sons
. Any
retu
rns
or p
erfo
rman
ce
prov
ided
with
in a
ny d
ocum
ent i
s pr
ovid
ed fo
r illu
stra
tive
purp
oses
onl
y an
d do
es n
ot d
emon
stra
te a
ctua
l per
form
ance
. Pas
t per
form
ance
is n
ot a
gua
rant
ee o
f fut
ure
inve
stm
ent r
esul
ts.
This
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y M
SCI,
Inc.
Cop
yrig
ht M
SCI,
2017
. U
npub
lishe
d. A
ll R
ight
s R
eser
ved.
Thi
s in
form
atio
n m
ay o
nly
be u
sed
for y
our i
nter
nal u
se, m
ay n
ot b
e re
prod
uced
or
redi
ssem
inat
ed in
any
form
and
may
not
be
used
to c
reat
e an
y fin
anci
al in
stru
men
ts o
r pro
duct
s or
any
indi
ces.
Thi
s in
form
atio
n is
pro
vide
d on
an
“as
is” b
asis
and
the
user
of t
his
info
rmat
ion
assu
mes
the
entir
e ris
k of
any
use
it m
ay m
ake
or p
erm
it to
be
mad
e of
this
info
rmat
ion.
Nei
ther
MSC
I, an
y of
its
affil
iate
s or
any
oth
er p
erso
n in
volv
ed in
or r
elat
ed to
com
pilin
g, c
ompu
ting
or c
reat
ing
this
info
rmat
ion
mak
es a
ny
expr
ess
or im
plie
d w
arr a
ntie
s or
repr
esen
tatio
ns w
ith re
spec
t to
such
info
rmat
ion
or th
e re
sults
to b
e ob
tain
ed b
y th
e us
e th
ereo
f, an
d M
SCI,
its a
ffilia
tes
and
each
suc
h ot
her p
erso
n he
reby
exp
ress
ly d
iscl
aim
all
war
rant
ies
(incl
udin
g, w
ithou
t lim
itatio
n, a
ll w
arra
ntie
s of
orig
inal
ity, a
ccur
acy,
com
plet
enes
s, ti
mel
ines
s, n
on-in
fring
emen
t, m
erch
anta
bilit
y an
d fit
ness
for a
par
ticul
ar p
urpo
se) w
ith re
spec
t to
this
info
rmat
ion.
W
ithou
t lim
iting
any
of t
he fo
rego
ing,
in n
o ev
ent s
hall
MSC
I, an
y of
its
affil
iate
s or
any
oth
er p
erso
n in
volv
ed in
or r
elat
ed to
com
pilin
g, c
ompu
ting
or c
reat
ing
this
info
rmat
ion
have
any
liab
ility
for a
ny d
irect
, ind
irect
, sp
ecia
l, in
cide
ntal
, pun
itive
, con
sequ
entia
l or a
ny o
ther
dam
ages
(inc
ludi
ng, w
ithou
t lim
itatio
n, lo
st p
rofit
s) e
ven
if no
tifie
d of
, or i
f it m
ight
oth
erw
ise
have
ant
icip
ated
, the
pos
sibi
lity
of s
uch
dam
ages
.
This
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y R
usse
ll In
vest
men
t Gro
up.
Rus
sell
Inve
stm
ent G
roup
is th
e so
urce
ow
ner o
f the
dat
a co
ntai
ned
or re
flect
ed in
this
mat
eria
l and
all
trade
mar
ks a
nd c
opyr
ight
s re
late
d th
eret
o. T
he m
ater
ial m
ay c
onta
in c
onfid
entia
l inf
orm
atio
n an
d un
auth
oriz
ed u
se, d
iscl
osur
e, c
opyi
ng, d
isse
min
atio
n or
redi
strib
utio
n is
stri
ctly
pro
hibi
ted.
Thi
s is
a u
ser p
rese
ntat
ion
of th
e da
ta.
Rus
sell
Inve
stm
ent
Gro
up is
not
resp
onsi
ble
for t
he fo
rmat
ting
or c
onfig
urat
ion
of th
is m
ater
ial o
r for
any
inac
cura
cy in
pre
sent
atio
n th
ereo
f.
This
doc
umen
t may
con
tain
dat
a pr
ovid
ed b
y M
orni
ngst
ar.
All r
ight
s re
serv
ed.
Use
of t
his
cont
ent r
equi
res
expe
rt kn
owle
dge.
It i
s to
be
used
by
spec
ialis
t ins
titut
ions
onl
y. T
he in
form
atio
n co
ntai
ned
here
in: (
1) is
pr
oprie
tary
to M
orni
ngst
ar a
nd/o
r its
con
tent
pro
vide
rs; (
2) m
ay n
ot b
e co
pied
, ada
pted
or d
istri
bute
d; a
nd (3
) is
not w
arra
nted
to b
e ac
cura
te, c
ompl
ete
or ti
mel
y. N
eith
er M
orni
ngst
ar n
or it
s co
nten
t pro
vide
rs a
re
resp
onsi
ble
for a
ny d
amag
es o
r los
ses
aris
ing
from
any
use
of t
his
info
rmat
ion,
exc
ept w
here
suc
h da
mag
es o
r los
ses
cann
ot b
e lim
ited
or e
xclu
ded
by la
w in
you
r jur
isdi
ctio
n. P
ast f
inan
cial
per
form
ance
is n
ot
guar
ante
e of
futu
re re
sults
.
91
92
M E M O R A N D U M
TO: OTRS Board of Trustees
FROM: Doug Anderson and Kirk Stebbins
DATE: February 22, 2017
RE: Strategic Asset Allocation Recommendations
This jointly prepared memo will give a summary of the findings of overlapping studies of the asset allocation of the OTRS investment portfolio. It will also provide the purpose for conducting the study and an overview of the processes employed.
Purpose An asset allocation study was prompted last year when the Board elected to reduce the System’s return assumption from 8.0% to 7.5%. The asset allocation study’s goal was an assessment of the portfolio’s structure, in the current market, and its ability to provide adequate returns while assuming reasonable risk.
Process The study represents an iterative collaborative effort between Staff and Consultant. Several models (mean/variance optimization and Sortino downside risk) were used in tandem to assess potential portfolios under different risk/return regimes and theoretical frameworks. In the end, the models provided the same general conclusions. Staff and Consultant are in full agreement on the conclusions of the study.
Findings The current target asset allocation is sufficient to accomplish the 7.5% return assumption. One model (A+), which represented modest allocation changes, displayed slightly better risk and return characteristics. The model shifted a modest amount of its domestic equity exposure to international equity and to real estate. We believe both asset categories are attractive in today’s market environment. However, we view the changes as diversification rather than market timing. The Strategic Asset Allocation reflect the changes from “Current” to “Proposed” as shown in the table below and corresponding proportional adjustments would be made to the Rebalancing Policy.
Asset Class Current Change Proposed U.S. Equities 40.0% -3.5% 36.5% International Equities 17.5% +1.5% 19.0% Fixed Income 23.5% 23.5% Real Estate 7.0% +2.0% 9.0% Master Limited Partnerships 7.0% 7.0% Private Equity 5.0% 5.0% Cash 0% 0%
93
The key risk and return estimate comparisons between the Current and Proposed allocations are shown in the table below.
Performance Metric Current Change Proposed Expected Return (Sortino) 8.80% +0.20% 9.00% Expected Return (MVO) 6.97% +0.03% 6.99% Expected Risk (MVO) 11.58% -0.12% 11.30% Expected Risk (Sortino) 12.00% -0.20% 11.80% Sortino Ratio 11.25 +1.37% 12.62 99th %ile return -26.4% -0.20% -26.6% Sharpe Ratio 0.39 0.01 0.40
The changes required to implement a move to model A+ would be relatively modest as few asset classes are affected. Recent gains from the domestic equity portfolio could be harvested to reinvest in international equity. The increase in real estate would be met over time as capital is called by scaling investments in new funds of current general partners to leverage those relationships and if necessary potentially new partnerships. Small adjustments to the investment policy statement would codify any changes made to the target asset allocation.
Once the strategic asset allocation has been adopted we recommend proceeding to address the asset class structure decisions for U.S. Equities and Fixed Income. Concurrent analysis of U.S. Equities indicates the benefit of changing the existing structure while no firm conclusions have been drawn with regard to changing the existing Fixed Income structure. No changes to the underlying structure of the other asset classes are anticipated at this time.
94
Man
ager
Man
date
Stra
tegy
AUM
% o
f Po
rtfo
lioCu
rren
t Sta
tus
Reas
on fo
r Sta
tus
Chan
geSt
atus
Cha
nge
Effe
ctiv
e Da
teDa
te o
f Las
t Re
view
Date
of N
ext
Revi
ewEx
pect
atio
ns
Wel
lingt
onDo
mes
ticEq
uity
Mid
Cap
491,
690,
915
3.32
%O
n Al
ert
Pers
onne
l Cha
nge
Janu
ary
2016
Dece
mbe
r 20
16Ju
ne 2
017
Mai
ntai
n co
ntin
uity
of m
anag
emen
t pr
actic
es a
nd re
sults
Advi
sory
Res
earc
h, In
cIn
tern
atio
nal
Equi
tySm
all C
ap18
4,43
2,49
21.
25%
On
Aler
tPe
rson
nel C
hang
eM
arch
201
6De
cem
ber
2016
June
201
7M
aint
ain
cont
inui
ty o
f man
agem
ent
prac
tices
and
resu
lts
All o
ther
man
ager
s cur
rent
ly ra
ted
In C
ompl
ianc
e
95
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Historical Allo
catio
n as a % of U
S Equitie
sAll Cap
and
Cap
Weighted Inde
xes
All Cap
% of U
S Eq
uitie
sCap Wtd Indx % of U
S Eq
uitie
s
96
Orig
inal
* Scena
rio 20%
Factor Ind
ex / 15%
Cap
Weighted Inde
x / 65
% Traditio
nal A
ctive
4.88
%3.65
%91
.47%
15.00%
20.00%
65.00%
15.00%
20.00%
65.00%
100.00
%
As of 1
/31/17
% of T
otal
Fund
% of T
otal
Fund
% of US
Equitie
s% of US
Equitie
sCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor
Inde
xTrad
ition
al
Activ
eTo
tal U
S Eq
uity
MktV$
Mkt Val
Tgt V
alMkt Val
Tgt V
al4.88
%3.65
%91
.47%
15.00%
20.00%
65.00%
Dom
estic
All Ca
p Eq
uity
$562
,178
,914
3.80
%3.5%
9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00.00
%0.00
%0.00
%0.00
%Dom
estic
Large
Cap
Equ
ity$1
,708
,470
,512
11.54%
11.5%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$451
,405
,239
$827
,317
,735
$1,358
,352
,307
7.28
%13
.33%
21.89%
42.50%
Dom
estic
Mid Cap
Equ
ity$2
,181
,588
,141
14.74%
14.0%
35.16%
35.00%
$0$0
$2,181
,588
,141
$479
,327
,213
$413
,658
,868
$1,123
,600
,900
7.73
%6.67
%18
.11%
32.50%
Dom
estic
Small Cap
Equ
ity$1
,752
,645
,449
11.84%
11.0%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.00
%0.00
%25
.00%
25.00%
$6,204
,883
,016
41.91%
40.00%
100.00
%10
0.00
%$3
02,938
,158
$226
,356
,090
$5,675
,588
,768
$930
,732
,452
$1,240
,976
,603
$4,033
,173
,961
15.00%
20.00%
65.00%
100.00
%Dom
estic
All Ca
p Eq
uity
All Cap
‐ Activ
e$5
62,178
,914
3.80
%9.06
%$5
62,178
,914
$0Dom
estic
All Ca
p Eq
uity Total
$562
,178
,914
3.80
%3.50
%9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00%
0%0%
0%Dom
estic
Large
Cap
Equ
ityLarge Cap Va
lue ‐ A
ctive
$607
,567
,439
4.10
%9.79
%$6
07,567
,439
$679
,176
,153
Large Cap Co
re ‐ Passive S&
P 50
0$3
02,938
,158
2.05
%4.88
%$3
02,938
,158
$0Large Cap Growth ‐ Activ
e$5
71,608
,825
3.86
%9.21
%$5
71,608
,825
$679
,176
,153
Large Cap Co
re ‐ Factor Eq Wt S
&P 50
0$2
26,356
,090
1.53
%3.65
%$2
26,356
,090
$0Large Cap Co
re ‐ Passive Ru
100
0$0
0.00
%0.00
%$0
$451
,405
,239
Large Cap Co
re ‐ Factor Smart B
eta
$00.00
%0.00
%$8
27,317
,735
Dom
estic
Large
Cap
Equ
ity Total
$1,708
,470
,512
11.54%
11.50%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$451
,405
,239
$827
,317
,735
$1,358
,352
,307
7.3%
13.3%
21.9%
42.5%
Dom
estic
Mid Cap
Equ
ityMid Cap
Core ‐ A
ctive
$580
,183
,847
3.92
%9.35
%$5
80,183
,847
$374
,533
,633
Mid Cap
Growth‐ A
ctive
$534
,204
,738
3.61
%8.61
%$5
34,204
,738
Mid Cap
Value
‐ Activ
e$5
75,508
,641
3.89
%9.28
%$5
75,508
,641
$374
,533
,633
Mid Cap
Growth‐ A
ctive
$491
,690
,915
3.32
%7.92
%$4
91,690
,915
$374
,533
,633
Mid Cap
Core ‐ Factor S
mart B
eta
$00.00
%0.00
%$0
$413
,658
,868
Mid Cap
Core ‐ P
assiv
e Ru
250
0$0
0.00
%0.00
%$0
$479
,327
,213
Dom
estic
Mid Cap
Equ
ity Total
$2,181
,588
,141
14.74%
14.00%
35.16%
35.00%
$0$0
$2,181
,588
,141
$479
,327
,213
$413
,658
,868
$1,123
,600
,900
7.7%
6.7%
18.1%
32.5%
Dom
estic
Small Cap
Equ
itySm
all Cap
Value
‐ Activ
e$1
25,741
,927
0.85
%2.03
%$1
25,741
,927
Small Cap
Value
‐ Activ
e$2
10,869
,030
1.42
%3.40
%$2
10,869
,030
Small Cap
Growth‐ A
ctive
$244
,719
,615
1.65
%3.94
%$2
44,719
,615
$475
,610
,377
Small Cap
Value
‐ Activ
e$1
54,460
,011
1.04
%2.49
%$1
54,460
,011
$475
,610
,377
Small Cap
Core ‐ A
ctive
$782
,522
,065
5.29
%12
.61%
$782
,522
,065
$600
,000
,000
Small Cap
Growth‐ A
ctive
$234
,332
,801
1.58
%3.78
%$2
34,332
,801
Dom
estic
Small Cap
Equ
ity Total
$1,752
,645
,449
11.84%
11.00%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.0%
0.0%
25.0%
25.0%
41.91%
40.00%
100.00
%10
0.00
%30
2,93
8,15
822
6,35
6,09
05,67
5,58
8,76
893
0,73
2,45
2
1,24
0,97
6,60
34,03
3,17
3,96
115
.00%
20.00%
65.00%
100.00
%
Prop
osed
US Eq
uity Structure ‐ Stage 1
Curren
t US Eq
uity Structure
*Propo
sed 9/20
/16
97
Conservativ
e Scen
ario
10%
Factor Ind
ex / 10%
Cap
Weighted Inde
x / 80
% Traditio
nal A
ctive
4.88
%3.65
%91
.47%
10.00%
10.00%
80.00%
10.00%
10.00%
80.00%
100.00%
As of 1
/31/17
% of T
otal
Fund
% of T
otal
Fund
% of US
Equitie
s% of US
Equitie
sCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor
Inde
xTrad
ition
al
Activ
eTo
tal U
S Eq
uity
MktV$
Mkt Val
Tgt V
alMkt Val
Tgt V
al4.88
%3.65
%91
.47%
10.00%
10.00%
80.00%
Dom
estic
All Ca
p Eq
uit y
$562
,178
,914
3.80
%3.5%
9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00.00
%0.00
%0.00
%0.00
%Dom
estic
Large
Cap
Equ
it y$1
,708
,470
,512
11.54%
11.5%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$300
,936
,826
$413
,658
,868
$1,922
,479
,588
4.85
%6.67
%30
.98%
42.50%
Dom
estic
Mid Cap
Equ
it y$2
,181
,588
,141
14.74%
14.0%
35.16%
35.00%
$0$0
$2,181
,588
,141
$319
,551
,475
$206
,829
,434
$1,490
,206
,071
5.15
%3.33
%24
.02%
32.50%
Dom
estic
Small Cap
Equ
it y$1
,752
,645
,449
11.84%
11.0%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.00
%0.00
%25
.00%
25.00%
$6,204
,883
,01 6
41.91%
40.00%
100.00%
100.00%
$302
,938
,158
$226
,356
,090
$5,675
,588
,768
$620
,488
,302
$620
,488
,302
$4,963
,906
,413
10.00%
10.00%
80.00%
100.00%
Dom
estic
All Ca
p Eq
uity
All Cap
‐ Activ
e$5
62,178
,914
3.80
%9.06
%$5
62,178
,914
$0Dom
estic
All Ca
p Eq
uity Total
$562
,178
,91 4
3.80
%3.50
%9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00%
0%0%
0%Dom
estic
Large
Cap
Equ
it yLarge Cap Va
lue ‐ A
ctive
$607
,567
,439
4.10
%9.79
%$6
07,567
,439
$961
,239
,794
Large Cap Co
re ‐ Passive S&
P 50
0$3
02,938
,158
2.05
%4.88
%$3
02,938
,158
$0Large Cap Growth ‐ Activ
e$5
71,608
,825
3.86
%9.21
%$5
71,608
,825
$961
,239
,794
Large Cap Co
re ‐ Factor Eq Wt S
&P 50
0$2
26,356
,090
1.53
%3.65
%$2
26,356
,090
$0Large Cap Co
re ‐ Passive Ru
100
0$0
0.00
%0.00
%$0
$300
,936
,826
Large Cap Co
re ‐ Factor Smart B
eta
$00.00
%0.00
%$4
13,658
,868
Dom
estic
Large
Cap
Equ
ity Total
$1,708
,470
,512
11.54%
11.50%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$300
,936
,826
$413
,658
,868
$1,922
,479
,588
4.9%
6.7%
31.0%
42.5%
Dom
estic
Mid Cap
Equ
it yMid Cap
Core ‐ A
ctive
$580
,183
,847
3.92
%9.35
%$5
80,183
,847
$496
,735
,357
Mid Cap
Growth‐ A
ctive
$534
,204
,738
3.61
%8.61
%$5
34,204
,738
Mid Cap
Value
‐ Activ
e$5
75,508
,641
3.89
%9.28
%$5
75,508
,641
$496
,735
,357
Mid Cap
Growth‐ A
ctive
$491
,690
,915
3.32
%7.92
%$4
91,690
,915
$496
,735
,357
Mid Cap
Core ‐ Factor S
mart B
eta
$00.00
%0.00
%$0
$206
,829
,434
Mid Cap
Core ‐ P
assiv
e Ru
250
0$0
0.00
%0.00
%$0
$319
,551
,475
Dom
estic
Mid Cap
Equ
ity Total
$2,181
,588
,141
14.74%
14.00%
35.16%
35.00%
$0$0
$2,181
,588
,141
$319
,551
,475
$206
,829
,434
$1,490
,206
,071
5.2%
3.3%
24.0%
32.5%
Dom
estic
Small Cap
Equ
it ySm
all Cap
Value
‐ Activ
e$1
25,741
,927
0.85
%2.03
%$1
25,741
,927
Small Cap
Value
‐ Activ
e$2
10,869
,030
1.42
%3.40
%$2
10,869
,030
Small Cap
Growth‐ A
ctive
$244
,719
,615
1.65
%3.94
%$2
44,719
,615
$475
,610
,377
Small Cap
Value
‐ Activ
e$1
54,460
,011
1.04
%2.49
%$1
54,460
,011
$475
,610
,377
Small Cap
Core ‐ A
ctive
$782
,522
,065
5.29
%12
.61%
$782
,522
,065
$600
,000
,000
Small Cap
Growth‐ A
ctive
$234
,332
,801
1.58
%3.78
%$2
34,332
,801
Dom
estic
Small Cap
Equ
ity Total
$1,752
,645
,449
11.84%
11.00%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.0%
0.0%
25.0%
25.0%
41.91%
40.00%
100.00%
100.00%
302,93
8,158
226,35
6,090
5,67
5,58
8,768
620,48
8,302
620,48
8,302
4,96
3,90
6,413
10.00%
10.00%
80.00%
100.00%
Curren
t US Eq
uity Structure
Prop
osed
US Eq
uity Structure ‐ Stage 1
98
Mod
erate Scen
ario
17.5%
Factor Ind
ex / 15%
Cap
Weighted Inde
x / 67
.5% Traditio
nal A
ctive
4.88
%3.65
%91
.47%
15.00%
17.50%
67.50%
15.00%
17.50%
67.50%
100.00
%
As of 1
/31/17
% of T
otal
Fund
% of T
otal
Fund
% of US
Equitie
s% of US
Equitie
sCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor In
dex
Trad
ition
al
Activ
eCa
p Wtd
Passive
Factor
Inde
xTrad
ition
al
Activ
eTo
tal U
S Eq
uity
MktV$
Mkt Val
Tgt V
alMkt Val
Tgt V
al4.88
%3.65
%91
.47%
15.00%
17.50%
67.50%
Dom
estic
All Ca
p Eq
uity
$562
,178
,914
3.80
%3.5%
9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00.00
%0.00
%0.00
%0.00
%Dom
estic
Large
Cap
Equ
ity$1
,708
,470
,512
11.54%
11.5%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$451
,405
,239
$723
,903
,019
$1,461
,767
,024
7.28
%11
.67%
23.56%
42.50%
Dom
estic
Mid Cap
Equ
ity$2
,181
,588
,141
14.74%
14.0%
35.16%
35.00%
$0$0
$2,181
,588
,141
$479
,327
,213
$361
,951
,509
$1,175
,308
,258
7.73
%5.83
%18
.94%
32.50%
Dom
estic
Small Cap
Equ
ity$1
,752
,645
,449
11.84%
11.0%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.00
%0.00
%25
.00%
25.00%
$6,204
,883
,016
41.91%
40.00%
100.00
%10
0.00
%$3
02,938
,158
$226
,356
,090
$5,675
,588
,768
$930
,732
,452
$1,085
,854
,528
$4,188
,296
,036
15.00%
17.50%
67.50%
100.00
%Dom
estic
All Ca
p Eq
uity
All Cap
‐ Activ
e$5
62,178
,914
3.80
%9.06
%$5
62,178
,914
$0Dom
estic
All Ca
p Eq
uity Total
$562
,178
,914
3.80
%3.50
%9.06
%8.75
%$0
$0$5
62,178
,914
$0$0
$00%
0%0%
0%Dom
estic
Large
Cap
Equ
ityLarge Cap Va
lue ‐ A
ctive
$607
,567
,439
4.10
%9.79
%$6
07,567
,439
$730
,883
,512
Large Cap Co
re ‐ Passive S&
P 50
0$3
02,938
,158
2.05
%4.88
%$3
02,938
,158
$0Large Cap Growth ‐ Activ
e$5
71,608
,825
3.86
%9.21
%$5
71,608
,825
$730
,883
,512
Large Cap Co
re ‐ Factor Eq Wt S
&P 50
0$2
26,356
,090
1.53
%3.65
%$2
26,356
,090
$0Large Cap Co
re ‐ Passive Ru
100
0$0
0.00
%0.00
%$0
$451
,405
,239
Large Cap Co
re ‐ Factor Smart B
eta
$00.00
%0.00
%$7
23,903
,019
Dom
estic
Large
Cap
Equ
ity Total
$1,708
,470
,512
11.54%
11.50%
27.53%
28.75%
$302
,938
,158
$226
,356
,090
$1,179
,176
,264
$451
,405
,239
$723
,903
,019
$1,461
,767
,024
7.3%
11.7%
23.6%
42.5%
Dom
estic
Mid Cap
Equ
ityMid Cap
Core ‐ A
ctive
$580
,183
,847
3.92
%9.35
%$5
80,183
,847
$391
,769
,419
Mid Cap
Growth‐ A
ctive
$534
,204
,738
3.61
%8.61
%$5
34,204
,738
Mid Cap
Value
‐ Activ
e$5
75,508
,641
3.89
%9.28
%$5
75,508
,641
$391
,769
,419
Mid Cap
Growth‐ A
ctive
$491
,690
,915
3.32
%7.92
%$4
91,690
,915
$391
,769
,419
Mid Cap
Core ‐ Factor S
mart B
eta
$00.00
%0.00
%$0
$361
,951
,509
Mid Cap
Core ‐ P
assiv
e Ru
250
0$0
0.00
%0.00
%$0
$479
,327
,213
Dom
estic
Mid Cap
Equ
ity Total
$2,181
,588
,141
14.74%
14.00%
35.16%
35.00%
$0$0
$2,181
,588
,141
$479
,327
,213
$361
,951
,509
$1,175
,308
,258
7.7%
5.8%
18.9%
32.5%
Dom
estic
Small Cap
Equ
itySm
all Cap
Value
‐ Activ
e$1
25,741
,927
0.85
%2.03
%$1
25,741
,927
Small Cap
Value
‐ Activ
e$2
10,869
,030
1.42
%3.40
%$2
10,869
,030
Small Cap
Growth‐ A
ctive
$244
,719
,615
1.65
%3.94
%$2
44,719
,615
$475
,610
,377
Small Cap
Value
‐ Activ
e$1
54,460
,011
1.04
%2.49
%$1
54,460
,011
$475
,610
,377
Small Cap
Core ‐ A
ctive
$782
,522
,065
5.29
%12
.61%
$782
,522
,065
$600
,000
,000
Small Cap
Growth‐ A
ctive
$234
,332
,801
1.58
%3.78
%$2
34,332
,801
Dom
estic
Small Cap
Equ
ity Total
$1,752
,645
,449
11.84%
11.00%
28.25%
27.50%
$0$0
$1,752
,645
,449
$0$0
$1,551
,220
,754
0.0%
0.0%
25.0%
25.0%
41.91%
40.00%
100.00
%10
0.00
%30
2,93
8,15
822
6,35
6,09
05,67
5,58
8,76
893
0,73
2,45
2
1,08
5,85
4,52
84,18
8,29
6,03
615
.00%
17.50%
67.50%
100.00
%
Curren
t US Eq
uity Structure
Prop
osed
US Eq
uity Structure ‐ Stage 1
99
Accoun
tsMarket V
alue
and
Accr
%Allocatio
nTarget Allo
catio
nMin % Allo
catio
nMax % Allo
catio
nU.S. Equ
ity$6
,364
,172
,706
.87
42.32%
40.0%
34.0%
46.0%
International Equ
ity$2
,341
,825
,040
.02
15.57%
17.5%
12.5%
22.5%
Fixed Income
$3,295
,447
,017
.28
21.91%
23.5%
18.5%
28.5%
Real Estate
$1,058
,150
,902
.00
7.04
%7.0%
5.0%
9.0%
Master Lim
ited Partne
rships
$1,127
,568
,513
.65
7.50
%7.0%
5.0%
9.0%
Private Equity
$787
,835
,573
.00
5.24
%5.0%
3.5%
6.5%
Cash and
Equ
ivalen
ts$6
3,78
4,86
7.96
0.42
%0.0%
0.0%
0.0%
Grand
Total
$15,03
8,78
4,62
0.78
100.00
%10
0.00
%
Accoun
ts$V
ariance to Target
%Va
riance to Target
Target M
kt Value
$ Be
low M
inMin $ Allo
catio
nMax $ Allo
catio
n$ Ab
ove Max
U.S. Equ
ity$3
48,658
,858
.56
2.32
%$6
,015
,513
,848
.31
$5,113
,186
,771
.07
$6,917
,840
,925
.56
International Equ
ity‐$28
9,96
2,26
8.62
‐1.93%
$2,631
,787
,308
.64
$1,879
,848
,077
.60
$3,383
,726
,539
.68
Fixed Income
‐$23
8,66
7,36
8.60
‐1.59%
$3,534
,114
,385
.88
$2,782
,175
,154
.84
$4,286
,053
,616
.92
Real Estate
$5,435
,978
.55
0.04
%$1
,052
,714
,923
.45
$751
,939
,231
.04
$1,353
,490
,615
.87
Master Lim
ited Partne
rships
$74,85
3,59
0.20
0.50
%$1
,052
,714
,923
.45
$751
,939
,231
.04
$1,353
,490
,615
.87
Private Equity
$35,89
6,34
1.96
0.24
%$7
51,939
,231
.04
$526
,357
,461
.73
$977
,521
,000
.35
Cash and
Equ
ivalen
ts$6
3,78
4,86
7.96
0.42
%$0
.00
$0.00
$0.00
$63,78
4,86
7.96
Grand
Total
$0.00
0%$1
5,03
8,78
4,62
0.78
Investmen
t Portfolio as o
f Feb
ruary 15
, 201
7Asset A
llocatio
n vs Policy Targets
100
Accounts Market Value Accruals Market Value and Accruals %Allocation*OTRS‐CUSTOM CASH FLOW‐SL*OTRS‐CUSTOM CASH FLOW‐SL $63,772,779.49 $12,088.47 $63,784,867.96 0.42%
*OTRS‐CUSTOM CASH FLOW‐SL Total $63,772,779.49 $12,088.47 $63,784,867.96 0.42%Core Plus Fixed IncomeOTRS‐HOISINGTON INVESTMENT $317,878,374.44 $990,701.91 $318,869,076.35 2.12%OTRS‐LOOMIS SAYLES CORE PLUS $644,666,923.78 $4,254,961.55 $648,921,885.33 4.31%OTRS‐LORD ABBETT CORE PLUS $641,732,611.53 $3,419,147.41 $645,151,758.94 4.29%OTRS‐MACKAY SHIELDS CORE PLUS $624,150,837.34 $5,194,441.84 $629,345,279.18 4.18%
Core Plus Fixed Income Total $2,228,428,747.09 $13,859,252.71 $2,242,287,999.80 14.91%Domestic All Cap EquityOTRS‐EPOCH INVESTMENTS $276,546.47 $146,819.53 $423,366.00 0.00%
Domestic All Cap Equity Total $276,546.47 $146,819.53 $423,366.00 0.00%Domestic Large Cap EquityOTRS‐HOTCHKIS & WILEY LG CAP $621,765,304.44 $1,231,080.78 $622,996,385.22 4.14%OTRS‐NORTHERN TRUST S&P 500 $864,665,625.76 $1,274,654.44 $865,940,280.20 5.76%OTRS‐SAWGRASS LG CAP $588,185,122.69 $637,165.89 $588,822,288.58 3.92%OTRS‐SSGA S&P EQUAL WEIGHT $232,722,698.01 $286,666.86 $233,009,364.87 1.55%
Domestic Large Cap Equity Total $2,307,338,750.90 $3,429,567.97 $2,310,768,318.87 15.37%Domestic Mid Cap EquityOTRS‐ARONSON, JOHNSON & ORTIZ $597,305,101.68 $372,624.01 $597,677,725.69 3.97%OTRS‐FRONTIER MID CAP $550,412,430.98 $148,191.75 $550,560,622.73 3.66%OTRS‐HOTCHKIS & WILEY MID CAP $595,478,021.54 $429,427.77 $595,907,449.31 3.96%OTRS‐WELLINGTON MID CAP $513,393,211.48 $162,392.30 $513,555,603.78 3.41%
Domestic Mid Cap Equity Total $2,256,588,765.68 $1,112,635.83 $2,257,701,401.51 15.01%Domestic Small Cap EquityOTRS‐COVE STREET $128,481,102.63 $8,300.74 $128,489,403.37 0.85%OTRS‐FRONTIER CAP SMALL CAP $214,768,058.32 $57,352.86 $214,825,411.18 1.43%OTRS‐GENEVA CAPITAL $253,143,807.82 $97,891.62 $253,241,699.44 1.68%OTRS‐NEUMEIER POMA SMALL CAP $157,860,574.51 $92,497.70 $157,953,072.21 1.05%OTRS‐SHAPIRO CAP SMALL CAP $800,341,178.62 $173,424.88 $800,514,603.50 5.32%OTRS‐WASATCH ADV SMALL CAP $240,032,958.49 $222,472.30 $240,255,430.79 1.60%
Domestic Small Cap Equity Total $1,794,627,680.39 $651,940.10 $1,795,279,620.49 11.94%High‐Yield Fixed IncomeOTRS‐LOOMIS SAYLES HIGH YIELD $279,869,441.02 $3,779,527.43 $283,648,968.45 1.89%OTRS‐LORD ABBETT HIGH YIELD $298,944,614.74 $4,060,788.26 $303,005,403.00 2.01%OTRS‐MACKAY SHIELDS HIGH YIELD $295,249,701.61 $3,917,653.37 $299,167,354.98 1.99%
High‐Yield Fixed Income Total $874,063,757.37 $11,757,969.06 $885,821,726.43 5.89%International Lg Cap EquityOTRS‐CAUSEWAY CAPITAL $337,027,588.14 $1,959,327.80 $338,986,915.94 2.25%OTRS‐NORTHERN TRUST INTL $10,109.02 $0.00 $10,109.02 0.00%OTRS‐WELLINGTON INTLGR EQ $313,156,221.45 $354,918.77 $313,511,140.22 2.08%OTRS‐ALLIANZ INTL EQ $737,451,724.42 $4,537,242.01 $741,988,966.43 4.93%
International Lg Cap Equity Total $1,387,645,643.03 $6,851,488.58 $1,394,497,131.61 9.27%International Sm Cap EquityOTRS‐ADVISORY RESEARCH INTL $184,943,399.28 $857,924.25 $185,801,323.53 1.24%OTRS‐EPOCH INTL $192,198,486.40 $439,620.92 $192,638,107.32 1.28%OTRS‐WASATCH INTL $195,648,678.50 $267,719.14 $195,916,397.64 1.30%OTRS‐WELLINGTON INTL $198,438,355.97 $324,410.29 $198,762,766.26 1.32%OTRS‐SSGA EMSC $174,209,284.77 $28.89 $174,209,313.66 1.16%
International Sm Cap Equity Total $945,438,204.92 $1,889,703.49 $947,327,908.41 6.30%Master Limited PartnershipsOTRS‐ADVISORY RESEARCH $253,813,367.84 $181,921.97 $253,995,289.81 1.69%OTRS‐CHICKASAW CAPITAL $463,358,788.72 $857,207.84 $464,215,996.56 3.09%OTRS‐CUSHING ASSET $408,687,685.64 $669,541.64 $409,357,227.28 2.72%
Master Limited Partnerships Total $1,125,859,842.20 $1,708,671.45 $1,127,568,513.65 7.50%Opportunistic*OTRS‐PIMCO BRAVO II‐SL $146,612,973.00 $0.00 $146,612,973.00 0.97%*OTRS‐PIMCO BRAVO‐SL $7,395,580.00 $0.00 $7,395,580.00 0.05%*OTRS‐PIMCO COF II ‐SL $13,328,704.53 $33.52 $13,328,738.05 0.09%
Opportunistic Total $167,337,257.53 $33.52 $167,337,291.05 1.11%Private Equity*OTRS‐LEGACY LP‐SL $37,472,927.00 $0.00 $37,472,927.00 0.25%OTRS‐FRANKLIN PARK‐SL $750,362,646.00 $0.00 $750,362,646.00 4.99%
Private Equity Total $787,835,573.00 $0.00 $787,835,573.00 5.24%Real Estate*OTRS‐AEW REAL ESTATE‐SL $268,600,366.26 $0.00 $268,600,366.26 1.79%*OTRS‐AMERICAN REALTY ADV‐SL $33,554,322.45 $0.00 $33,554,322.45 0.22%*OTRS‐ANTHEUS CAPITAL‐SL $45,952,581.00 $0.00 $45,952,581.00 0.31%*OTRS‐DUNE REAL ESTATE‐SL $41,145,907.00 $0.00 $41,145,907.00 0.27%*OTRS‐GREENOAK REAL ESTATE‐SL $34,795,796.00 $0.00 $34,795,796.00 0.23%*OTRS‐HEITMAN REAL ESTATE‐SL $281,745,067.01 $0.00 $281,745,067.01 1.87%*OTRS‐L&B GOLDEN DRILLER‐SL $47,607,032.00 $0.00 $47,607,032.00 0.32%*OTRS‐L&B REAL ESTATE‐SL $253,784,510.28 $0.00 $253,784,510.28 1.69%*OTRS‐LANDMARK REALTY ADV‐SL $18,202,195.00 $0.00 $18,202,195.00 0.12%*OTRS‐STARWOOD CAPITAL‐SL $32,763,125.00 $0.00 $32,763,125.00 0.22%
Real Estate Total $1,058,150,902.00 $0.00 $1,058,150,902.00 7.04%Grand Total $14,997,364,450.07 $41,420,170.71 $15,038,784,620.78 100.00%
Investment Portfolio as of February 15, 2017Allocation by Investment Account and Asset Class
101
Firms Market Value and Accruals %Allocation # FirmsHOTCHKIS & WILEY $1,218,903,834.53 8.11%WELLINGTON $1,025,829,510.26 6.82%LORD ABBETT $948,157,161.94 6.30%LOOMIS SAYLES $932,570,853.78 6.20%NORTHERN TRUST $929,735,257.18 6.18%MACKAY SHIELDS $928,512,634.16 6.17%SHAPIRO CAP $800,514,603.50 5.32%FRANKLIN PARK $787,835,573.00 5.24%FRONTIER $765,386,033.91 5.09%ALLIANZ $741,988,966.43 4.93%ARONSON, JOHNSON & ORTIZ $597,677,725.69 3.97%SAWGRASS $588,822,288.58 3.92%CHICKASAW CAPITAL $464,215,996.56 3.09%ADVISORY RESEARCH $439,796,613.34 2.92%WASATCH $436,171,828.43 2.90%CUSHING ASSET $409,357,227.28 2.72%SSGA $407,218,678.53 2.71%CAUSEWAY CAPITAL $338,986,915.94 2.25%HOISINGTON INVESTMENT $318,869,076.35 2.12%L&B REAL ESTATE $301,391,542.28 2.00%HEITMAN REAL ESTATE $281,745,067.01 1.87%AEW REAL ESTATE $268,600,366.26 1.79%GENEVA CAPITAL $253,241,699.44 1.68%EPOCH INVESTMENTS $193,061,473.32 1.28%PIMCO $167,337,291.05 1.11%NEUMEIER POMA $157,953,072.21 1.05%COVE STREET $128,489,403.37 0.85%ANTHEUS CAPITAL $45,952,581.00 0.31%DUNE REAL ESTATE $41,145,907.00 0.27%GREENOAK REAL ESTATE $34,795,796.00 0.23%AMERICAN REALTY ADV $33,554,322.45 0.22%STARWOOD CAPITAL $32,763,125.00 0.22%LANDMARK REALTY ADV $18,202,195.00 0.12%Grand Total $15,038,784,620.78 100.00% 33
Investment Portfolio as of February 15, 2017Allocation by Investment Management Firm
102
715:1-1-16. General IRS qualification rules
In addition to other Code provisions otherwise noted, and in order to satisfy the
applicable requirements under the Code, the retirement system shall be subject to the following
provisions, notwithstanding any other provision of the retirement system law:
(1) The Board of Trustees shall distribute the corpus and income of the retirement
system to the members and their beneficiaries in accordance with the retirement system
law.
(2) Forfeitures arising from severance of employment, death, or for any other reason
may not be applied to increase the benefits any member would otherwise receive under
the retirement system law.
(3) The Board of Trustees or its designee may not:
(A) determine eligibility for benefits,
(B) compute rates of contribution, or
(C) compute benefits of members or beneficiaries in a manner that
discriminates in favor of members who are considered officers, supervisors, or
highly compensated, as prohibited under Code Section 401(a)(4)
(4) The Board of Trustees may not engage in a transaction prohibited by Code
Section 503(b).
(5) Compliance with Code Section 401(a)(2) for exclusive benefit and nondiversion of
trust funds:
(A) The assets of the Plan shall never inure to the benefit of an employer and shall
be held for the exclusive purpose of providing benefits to members and their
beneficiaries and defraying reasonable expenses of administering the Plan.
(B) The trust fund must not revert, and no contributions shall be permitted to be
returned, to the employers, except due to a mistake of fact as permitted by Revenue
Ruling 91-4.
715:10-15-3. Date of retirement; making application
The earliest effective date of retirement for any eligible member is the first day of the
month following the one in which employment ceases, with the first annuity payment due the last
day of that month.
(1) It is the member's responsibility to notify, by filing a retirement contract as
outlined in paragraphs 4 and 5 of this section, the TRS Board of Trustees of the date on
which retirement is to begin.
(2) Payments for all years of service, for which a member wants to receive credit,
must be made no less than 90 days prior to the date of retirement.
(3) State law does not permit TRS to make retroactive retirement payments. Members
should ensure that their creditable service record is up-to-date and accurate before they
retire.
(3)(4) Not less than ninety (90) days prior to retirement, the member must submit to
TRS a Pre-Retirement Information Verification, copy of the member’s proof of birth,
copy of the joint annuitant’s proof of birth (if applicable), copy of marriage certificate or
license if married to joint annuitant, and verification of 120 days of accrued/unused sick
leave for calculation of sick leave credit. The Pre-Retirement Information Verification
103
and supporting pre-retirement documentation must be on file with TRS to enable TRS to
prepare a complete Application to Retire.
(4)(5) After submitting all required pre-retirement documentation, the member will
receive an Intent Application to Retire. This form must be returned to TRS no less than
sixty (60) days prior to the effective date of retirement. Upon receipt of the completed
Intent Application to Retire the member will receive a final contract for retirement.
(5)(6) The Final Contract for Retirement, properly executed before a notary, is required
by statutes to be filed with TRS no less than thirty (30) days before the date of retirement.
Therefore, the final contract for retirement must be completed and on file with TRS by
the first day of the month immediately preceding the retirement date. The first retirement
benefit payment will be made on the first day of the month following the effective date of
retirement.
(6)(7) For example, a retirement contract must be on file by May 1, for a retirement date
of June 1, in order to process the first retirement benefit payment on July 1.
[Source: Amended at 30 Ok Reg 1476, eff 7-1-13]
715:10-15-3.1 Employer’s Verification of Retirement Information
Employers of members actively employed during the school year of retirement must
submit to TRS information on the member’s final year of employment to complete the member’s
retirement.
(1) Upon receipt of the Application to Retire from a member, TRS shall notify the
employer that final employment information is needed from the employer. The employer
shall submit the required employment information via TRS’ online Employer Portal not
less than sixty (60) days prior to the member’s date of retirement. Information submitted
by the employer shall include, but not be limited to: last day the member is expected to
be physically on the job; last day the member is expected to be on the payroll, the
member’s expected final annual compensation for that employment year, and an expected
balance of accrued/unused sick leave.
(2) No later than the 15th
day of the month of the member’s retirement the employer
shall confirm via the TRS Employer Portal the information provided to TRS in
subsection (1) above, making any changes to the final information as is necessary.
Failure to submit this information by the deadline or errors in submitted information that
result in a disqualification of retirement eligibility shall be the responsibility of the
employer as is provided in 70 O.S. § 17-105(1)(a)(2).
715:10-15-10. Retirement plans
A member may elect to receive a monthly life annuity under one of the following plans:
(1) The Maximum Retirement Plan provides the greatest monthly lifetime benefit that
each individual member's years of creditable service and average salary permit. The
maximum retirement plan is the monthly entitlement calculated using the standard
retirement formula set by statutes. In the event the total retirement payments made prior
to the death of a retired member are less than the member's accumulated contributions
(with any interest credited to the account prior to July 1, 1968), the difference shall be
104
paid to the member's designated beneficiary or to the member's estate if no designated
beneficiary survives the member.
(2) Retirement Option 1 provides a slightly reduced lifetime benefit. The monthly
entitlement is the difference between the annuity portion of the maximum retirement plan
and the annuity portion of an Option 1 retirement plan subtracted from the Maximum
retirement plan. If the retired member dies before receiving in the annuity portion of the
monthly payments an amount equal to the member's deposits (with any interest credited
to the account prior to July 1, 1968), the remaining balance shall be paid in a lump sum to
the member's designated beneficiary or to the member's estate if no beneficiary survives
the member. (The member's deposits are "protected" for the member's beneficiary for a
longer period of time than under the maximum retirement plan, hence, the monthly
benefit is less than the Maximum benefit.)
(3) Retirement Option 2 provides a reduced monthly benefit payable to the member
for life. At the death of the retired member, the same monthly benefit payable to the
member shall continue to the member's joint annuitant, if living. This option is known as
a "100% joint survivor annuity." The reduction in the monthly benefit is based on
actuarial tables developed for this purpose and approved by the Board of Trustees. The
ages of the member and joint annuitant are an important factor in computing this benefit.
The joint annuitant for the Option 2 retirement plan may be the member's spouse, another
person, or the beneficiary of a Discretionary and Special Needs Trust as provided in 70
O.S. § 17-105(g). If the designated joint annuitant is not the member's spouse, IRS
Regulations require that the adjusted member/joint annuitant age difference cannot be
more than ten (10) years. The adjusted member/joint annuitant age difference is
determined by first calculating the excess of the age of the member over the age of the
joint annuitant based on their ages on the date of retirement. If the member is younger
than age 70, the age difference determined in the previous sentence is reduced by the
number of years that the member is younger than age 70 based on the member's age on
the date of retirement. If the adjusted member/joint annuitant age difference is greater
than ten (10) years, the Option 2 retirement plan is not available. In the event the
member's joint annuitant dies at any time after the member's retirement date but before
the death of the member, the member shall return to the retirement benefit, including any
post-retirement benefit increases the member would have received, had the member not
selected the Option 2 retirement plan. The joint annuitant designation cannot be changed
under any circumstance after the date of retirement except as provided in OAC 715:10-
15-11. The reduction in the monthly payment is much greater than under all other
retirement options because two people are protected for the life of both individuals.
(4) Retirement Option 3 provides a reduced monthly benefit payable to the member
for life. At the death of the retired member, one-half (or 50%) of the monthly benefit
payable to the member, shall continue to the member's joint annuitant, if living. This
option is known as a "50% joint survivor annuity." The reduction in the monthly benefit
is based on actuarial tables developed for this purpose and approved by the Board of
Trustees. The age of the joint annuitant is an important factor in computing this benefit.
The joint annuitant for the Option 3 retirement plan may be any person or the beneficiary
of a Discretionary and Special Needs Trust as provided in 70 O.S. § 17-105(g). In the
event the member's joint annuitant dies at any time after the member's retirement date but
before the death of the member, the member shall return to the retirement benefit,
105
including any post-retirement benefit increases, the member would have received had the
member not selected the Option 3 retirement plan. The joint annuitant cannot be changed
under any circumstance after the date of retirement except as provided in OAC 715:10-
15-11. The reduction in the monthly payment, while not as great as in the Option 2 plan,
still requires a substantial reduction because two people are protected for the life of both
individuals.
(5) Retirement Option 4 provides a reduced monthly benefit payable to the member
for life. In the event the retired member dies within one hundred twenty (120) continuous
months from the date of retirement, the balance of the payments is continued to the
designated beneficiary until a total of one hundred twenty (120) months have been
completed. The actual reduction is based on actuarial tables developed for this purpose
and approved by the Board of Trustees. The beneficiary must be designated at the time of
retirement. The Option 4 retirement plan is not available for a member whose retirement
date is on or after the member reaches age 93. However, if the designated beneficiary is
the member's spouse, the Option 4 retirement plan may be selected if the 120-month
period does not extend beyond the joint life and last survivor expectancy of the member
and the member's spouse. If the beneficiary dies before the total number of "guaranteed"
months have been completed, the remaining payments shall be computed at the rate of
interest used in determining the original guarantee. The funds remaining shall be paid to
the administrators, executors or assigns of the last surviving payee.
715:10-15-11.1 Designation of Trustee of Oklahoma Discretionary and Special Needs Trust
as joint annuitant or beneficiary
(a) 70 O.S. § 17-105(g) provides that any person who is eligible to be named as a
beneficiary or joint annuitant, and who is also a beneficiary of a trust created under the
Oklahoma Discretionary and Special Needs Trust Act, or comparable Trust Act under
another state, may be a beneficiary or joint annuitant of a retired member by having the
trustee of the trust established for the benefit of that individual named as the legal
beneficiary or joint annuitant. Benefit payments shall be paid to the Trustee for the
benefit of the beneficiary.
(b) If a beneficiary or joint annuitant, at the time of or subsequent to being named a
beneficiary or joint annuitant of a TRS member, is or becomes the beneficiary of a
Special Needs Trust, TRS will acknowledge the trust as the beneficiary or joint annuitant
and make payments to the Trustee once the following has been submitted to and
approved by TRS:
(1) Trust creation documents which include the following:
(a) Provision that the trust is non-revocable;
(b) Provision for only one beneficiary of the trust which cannot be changed and
provision no other beneficiaries may be added; and,
(c) Provision that the beneficiary must hold all interests in the trust except for the
remainder interest to be paid in the event of the beneficiary’s death;
(2) Signed and notarized acknowledgment from Trustee that he or she will notify
TRS within 15 (fifteen) days of the death of the beneficiary, or in the event a new Trustee
is appointed, or any other change to the Trust documents that would affect the eligibility
of the beneficiary or Trustee from being eligible to be named a beneficiary under
106
subsection (b) such as addition of a beneficiary, etc.; and, the tax identification number of
the Trust, as well as the social security number of the Trust beneficiary.
107
1
TO: BOARD OF TRUSTEES OF THE OKLAHOMA TEACHERS’ RETIREMENT SYSTEM
FROM: JULIE EZELL
SUBJECT: WAIVER OF EMPLOYER REPORTING LATE FEES
DATE: FEBRUARY 16, 2017
CC: TOM SPENCER
70 O.S. § 17-120 provides that if TRS participating employers do not remit the employer’s monthly reports and contributions within thirty (30) days from the end of the payroll month the late remitted contributions shall be subject to a late charge of one and one-half percent (1 ½%) compounding monthly. Effective November 1, 2016, this provision was amended to allow the TRS Board of Trustees to waive the late fees for “good cause shown.”
The February 2017 Board of Trustees meeting agenda contains several requests from TRS participating employers for waivers of late fees that have been assessed due to late filings and remittances. The purpose of this memo is to provide the Board of Trustees with legal guidance as to what meets the legal definition of ‘good cause shown’ as referenced in the statute. In the future, it is advisable for the Board to consider adopting a rule that provides guidance to employers on this issue.
The term ‘good cause’ is defined by Oklahoma case law in many instances ranging from determining if there is good cause for failure to prosecute a criminal case, to custody disputes determining whether or not there is good cause to terminate parent rights. Oklahoma criminal cases on the issue of good cause are the most applicable to the current situation as they set forth an analysis for determining whether there was good cause for the failure to complete a task, that is, to bring a criminal defendant to trial in a timely manner.
In McDuffie v. State, 1982 OK CR 150, the Court was determining whether or not the delay in prosecuting Mr. McDuffie for a criminal offense constituted good cause. The Oklahoma Constitution requires that those charged with criminal offenses be given a speedy trial. Okla. Const. Art. 2, § 20. If a criminal defendant does not receive a speedy trial, the criminal charge can be dismissed. But if the State can show that there was good cause for the delay to prosecute, the charges will stand through trial. In this case, the Court stated that good cause could not be found if there was bad faith on the part of the State to move the case to trial, or if there were deliberate attempts to slow the case from proceeding to trial.
Similarly in another speedy trial case in Pickle v. Bliss, 1966 OK CR 128, the Court stated, “The want of time and press of business on the part of the county attorney is not good cause.” It went on to say that, “There is no hard and fast rule for determining the question as to what is meant by the term good cause shown, it becomes a matter for judicial determination under the facts and circumstances of each case.”
Oklahoma case law on the subject of good cause reveals common themes: Hospitalizations of witnesses, acts of God, and newly discovered evidence have all been found to be good cause for the delay in trial. These cases all require that the person trying to show good cause must list specific
108
2
facts that demonstrate good cause. It’s insufficient to merely say they had good cause without specific facts.
In summation, before any request for waiver of late fees is granted, the Board must be convinced that the request sets forth specific facts that meet the definition of good cause. The request cannot cite a vague reason or simply say it’s hard to file and pay the reports on time. A request for waiver will likely meet the good cause definition if it is supported by reasons that are beyond the control of the requestor or things that were too remote to be foreseen. The requestor can’t be making the request in bad faith or not taking significant affirmative steps to meet the timely filing requirement. That a requestor has a high volume of work, was unaware of the filing requirement, or has known procedural issues that are not being addressed is not good cause. But if a requestor files and pays late because they realized something in the report was wrong, the report didn’t contain all of the information in should have due to something outside of their control they very well might meet the definition of good cause. Other good examples of things completely out of a requestor’s control that may meet this definition are things like the hospitalization of the person who files these reports, snow closure, etc.
109
110
111
112
113
114
115
116
117
118
CLIENT SERVICES PERFORMANCE METRICS THROUGH JANUARY 2017
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
Num
ber o
f Cal
ls
INCOMING CALLS SERVED THROUGH TRS MAIN NUMBER
Total Incoming Answered Routed Abandoned
0
200
400
600
800
1000
1200
Num
ber o
f Req
uest
s ESTIMATE REQUESTS THROUGH JANUARY 2017
New Requests Completed Outstanding *Avg time to complete < 25 hrs
84%
11%
5%
INFORMATION CENTER PERFORMANCE JANUARY 2017
TOTAL CALLS RECEIVED THROUGH THE OTRS
MAIN LINE : 6858
TOTAL E-MAILS RECEIVED THROUGH OTRS WEB LINK:
520
TOTAL CALLS RECEIVED THROUGH THE OTRS
MAIN LINE : 6197
PORTAL CLIENTS WITH CONFIRMED PINs:
8109
INCOMING E-MAILS: 392
TOTAL CALLS RECEIVED THROUGH THE OTRS
MAIN LINE : 6858
TOTAL E-MAILS RECEIVED THROUGH OTRS WEB LINK:
520
743 Calls Routed Through Menu Options.
5744 Calls Answered in IC . Avg Wait Duration: 21 seconds.
365 Callers Abandoned Line Before Answered Average Abandon Duration: 61 seconds
TOTAL CALLS RECEIVED THROUGH THE OTRS
MAIN LINE : 6852
PORTAL CLIENTS WITH CONFIRMED PINs:
11,455
INCOMING E-MAILS: 547
119
Count Benefit Total
Average
Benefit
Average Years
of Service
Average
Age
Disability 4 $3,892.74 $973.19 14.88 53.75
Normal 106 $182,047.88 $1,717.43 20.33 64.20
Total 110 $185,940.62 $1,690.37 20.13 63.82
126 ($186,502.92) $1,480.18 24.6 79.63
Monthly Retirement Status Report
From 2/1/2017 to 2/28/2017
New Retirements
Terminated Annuities
Generated On: Page 1 of 1
120
HR STATUS REPORT 2/23/2017
HR STATUS REPORT
• New Hires (January 2017):
n/a
• Resignations/Terminations/Retirements (January 2017):
Employee: 111571 Title: Information Technology Specialist Part time: 30 hours per week Salary: $86,000 Effective: 1/31/2017
• Promotions/Transfers/Changes (January 2017):
Employee: 289704 Title From: Retirement Planning Consultant (survivor benefits) Title To: Retirement Planning Consultant (counselor) Salary From: $42,000 Salary To: $42,000 Effective: 1/17/2017
Employee: 147588 Title From: Retirement Planning Consultant (information center) Title To: Retirement Planning Consultant (survivor benefits) Salary From: $38,090 Salary To: $42,000 Effective: 1/17/2017
MISCELLANEOUS PAYMENTS
• Continuous Service Incentive (As provided in Merit Rule 260:25-7-11 and approved by HCM, a division ofOMES, a $5,000 continuous service incentive has been approved to be paid over an 18-month periodbeginning with the employee's seventh month of employment. This is the 11th of 18 payments.)
Employee: 110118 Title: Chief Investment Officer Payment: $200 Effective: 2/28/2017
• Severance Payments:
n/a
NEW HIRES, RESIGNATIONS, RETIREMENTS OR OTHER CHANGES PENDING
• Business Analyst (Mar 2017 report)
121
Employer ReportingAnalysis of Employee and Employer Contributions Received
0 0 0 01
45
0
2
4
6
8
10
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June TOTAL
Number of Delinquent Reports FY17
$0
.00
$0
.00
$0
.00
$0
.00
$8
4,4
19
.00
$1
13
,44
9.9
1
$1
97
,86
8.9
1
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June TOTAL
Estimated Delinquent Funds FY17
$6
4,1
79
,15
6.6
3
$3
7,2
68
,77
1.4
2
$4
8,1
36
,14
3.7
5
$6
5,8
79
,35
6.1
0
$6
0,7
96
,14
1.1
7
$6
5,9
61
,76
3.8
3
$3
42
,22
1,3
32
.90
$6
7,6
53
,26
4.8
1
$3
9,3
30
,63
4.8
5
$5
2,9
11
,65
9.5
0
$5
7,8
02
,88
1.6
5
$5
9,4
44
,38
1.1
7
$6
1,6
16
,09
7.1
3
$3
38
,75
8,9
19
.11
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June TOTAL
Comparison of Contributions Received
For Five Months Ended December 31, 2015 and December 31, 2016
2016 2017
122
CURRENT ASSETS:
Cash Not Available For Investment $6,580,316.07
Equities (At Market Value) 11,378,685,830.19
Fixed Income (At Market Value) 3,064,807,599.27
Short-Term Investment Account 385,508,714.11
Due From/(To) Broker (82,676,656.44)
Accounts Receivable Installment Payments 1,293,164.82
Accrued Income 57,295,876.81
Total Current Assets 14,811,494,844.83
CAPITAL ASSETS:
Office Furniture and Equipment 4,370,740.94
Accumulated Depreciation (297,996.00)
TOTAL ASSETS $14,815,567,589.77
CURRENT LIABILITIES:
Teachers' Savings Fund $4,930,303,849.83
Retirement Benefit Fund 8,547,276,291.63
Interest Fund 1,272,345,772.92
Expense Fund 18,660,445.56
Suspense Fund 42,420,195.57
Total Current Liabilities 14,811,006,555.51
TRS Capital Investment 4,561,034.26
TOTAL LIABILITIES AND CAPITAL INVESTMENT $14,815,567,589.77
BALANCE SHEET
JANUARY 31, 2017
123
Year to Date Year to Date % Change
(FY 2017) (FY 2016)
Balance of Cash and Investments
Net Position, Beginning of Year $13,792,753,367.70 $14,374,427,590.20
RECEIPTS:
Members' Deposits 142,805,643.77 146,295,003.70 -2.39%
Employer Contributions 219,348,960.11 227,076,004.14 -3.40%
State Credits 21,013,402.22 11,276,363.32 86.35%
Reimbursed Administrative 41,092.81 3,073.35 1237.07%
Matching Funds from Schools 12,924,775.86 14,028,820.84 -7.87%
Lottery Revenue 2,050,336.25 1,710,407.30 19.87%
Cigarette Sales Tax Revenue 957,354.43 1,004,108.53 -4.66%
Dedicated Revenue 158,091,238.24 173,537,045.61 -8.90%
Total Retirement Receipts 557,232,803.69 574,930,826.79 -3.08%
Interest Income (Fixed Income and Short-Term) 117,659,650.76 137,544,180.09 -14.46%
Dividend Income 98,280,547.51 107,454,738.83 -8.54%
Net Realized Gain/(Loss) 384,605,591.69 203,539,748.47 88.96%
Net Unrealized Gain/(Loss) 680,669,488.55 (1,893,232,609.88) 135.95%
Investment Operations Income:
Class Action Lawsuit Proceeds 0.00 0.00 0.00%
Other Income 43,104.08 0.00 0.00%
Securities Lending Income 5,363,180.82 4,043,515.05 32.64%
Total Investment Income 1,286,621,563.41 (1,440,650,427.44) 189.31%
TOTAL RECEIPTS 1,843,854,367.10 (865,719,600.65) 312.99%
DISBURSEMENTS:
Retirement Benefits 739,117,388.05 709,767,427.89 4.14%
Insurance Premiums Paid for Retirees 17,882,497.00 17,901,399.00 -0.11%
Death Benefits 10,645,886.45 9,857,720.51 8.00%
Withdrawals of Accounts 27,391,519.49 23,753,638.92 15.32%
Total Benefit Payments 795,037,290.99 761,280,186.32 4.43%
Administrative Expense:
General Operations 2,755,495.72 3,043,539.95 -9.46%
Investment Expense 27,320,103.26 23,456,332.06 16.47%
Total Administrative Expenses 30,075,598.98 26,499,872.01 13.49%
TOTAL DISBURSEMENTS 825,112,889.97 787,780,058.33 4.74%
NET INCREASE/(NET DECREASE) 1,018,741,477.13 (1,653,499,658.98) 161.61%
Balance of Cash and Investments, January 31 $14,811,494,844.83 $12,720,927,931.22
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
FOR THE SEVEN MONTHS ENDED JANUARY 31
124
FY-2016 YTD FY-2017 YTD
Actual Actual Increase Increase
Expenditures Expenditures (Decrease) (Decrease)
Object of Expenditure 1/31/2016 1/31/2017 Amount Percentage
Personal Services
Salary and Longevity Pay Expenses 1,250,288 1,302,862 52,574 4.2%
Taxes, Benefits, and Other Expenses 615,800 619,942 4,142 0.7%
Subtotal Personal Services 1,866,088 1,922,804 56,716 3.0%
Professional Services
Investment Consultant Expenses 531,000 531,000 0 0.0%
Investment Custodian Expenses 12,777 25,000 12,223 95.7%
Pension Commission Expenses 4,987 17,898 12,911 258.9%
Subtotal Investment Expenses 548,764 573,898 25,134 4.6%
Legal Services - Special Projects 20,018 23,983 3,965 19.8%
Legal Services - Attorney General 0 0 0 0.0%
Administrative Hearings 0 1,575 1,575 0.0%
Auditing Services 97,712 112,696 14,984 15.3%
Actuarial Services 85,943 73,519 (12,424) -14.5%
Medical Hearings 5,369 4,500 (869) -16.2%
Communications Firm 0 0 0 0.0%
Contract Lobbyist 0 22,500 22,500 0.0%
Disability Retirement Management 0 0 0 0.0%
Miscellaneous Services 6,463 4,168 (2,295) -35.5%
Subtotal Professional Services 215,505 242,941 27,436 12.7%
Total Professional Services 764,269 816,839 52,570 6.9%
Travel and Per Diem Expenses
Non-Employee Travel Expenses 18,310 5,747 (12,563) -68.6%
Employee Training 10,885 8,520 (2,365) -21.7%
Employee Travel Expenses 12,569 10,209 (2,360) -18.8%
Subtotal Travel and Per Diem Expenses 41,764 24,476 (17,288) -41.4%
Administrative Expenses
Postage 97,823 25,217 (72,606) -74.2%
Printing and Binding Contracts 9,221 18,342 9,121 98.9%
Informational Services 12,540 6,858 (5,682) 0.0%
Rent and Maintenance 104,198 107,116 2,918 2.8%
Office Supplies 15,824 12,307 (3,517) -22.2%
Equipment 0 0 0 0.0%
Miscellaneous Administrative Expenses 11,476 25,860 14,384 125.3%
Subtotal Administrative Expenses 251,082 195,700 (55,382) -22.1%
Data Processing Expenses
Professional Services 323,204 151,881 (171,323) -53.0%
Telecommunication Services 8,246 9,378 1,132 13.7%
Rent and Maintenance 2,515 3,851 1,336 53.1%
Office Supplies 0 0 0 0.0%
Equipment -Telecommunications 10,619 2,456 (8,163) -76.9%
Subtotal Data Processing Expenses 344,584 167,566 (177,018) -51.4%
Total Expenses 3,267,787 3,127,385 (140,402) -4.3%
Total Investment Expenses Only 548,764 573,898 25,134 4.6%
Total Data Processing Expenses Only 344,584 167,566 (177,018) -51.4%
Total except Investment & Data Processing Expenses 2,374,439 2,385,921 11,482 0.5%
Thursday, February 23, 2017
SCHEDULE I
Comparison of Actual Expenditures Fiscal Year 2016 and Fiscal Year 2017
7 Months Ended January 31, 2017
125
7 Months 7 Months Over Over
FY-2017 YTD FY-2017 YTD (Under) (Under)
Object of Expenditure Budget Actual Amount Percentage
Personal Services
Salary and Longevity Pay Expenses 1,474,511 1,302,862 (171,649) -11.6%
Taxes, Benefits, and Other Expenses 743,188 619,942 (123,246) -16.6%
Subtotal Personal Services 2,217,699 1,922,804 (294,895) -13.3%
Professional Services
Investment Consultant Expenses 634,500 531,000 (103,500) -16.3%
Investment Custodian Expenses 26,250 25,000 (1,250) -4.8%
Pension Commission Expenses 35,000 17,898 (17,102) -48.9%
Subtotal Investment Expenses 695,750 573,898 (121,852) -17.5%
Legal Services - Special Projects 14,581 23,983 9,402 64.5%
Legal Services - Attorney General 4,375 0 (4,375) 0.0%
Administrative Hearings 7,500 1,575 (5,925) -79.0%
Auditing Services 165,310 112,696 (52,614) -31.8%
Actuarial Services 75,000 73,519 (1,481) -2.0%
Medical Hearings 8,985 4,500 (4,485) -49.9%
Communications Firm 29,169 0 (29,169) 0.0%
Contract Lobbyist 18,334 22,500 4,166 22.7%
Disability Retirement Management 29,169 0 (29,169) 0.0%
Miscellaneous Services 15,040 4,168 (10,872) -72.3%
Subtotal Professional Services 367,463 242,941 (124,522) -33.9%
Total Professional Services 1,063,213 816,839 (246,374) -23.2%
Travel and Per Diem Expenses
Non-Employee Travel Expenses 22,500 5,747 (16,753) -74.5%
Employee Training 15,345 8,520 (6,825) -44.5%
Employee Travel Expenses 17,395 10,209 (7,186) -41.3%
Subtotal Travel and Per Diem Expenses 55,240 24,476 (30,764) -55.7%
Administrative Expenses
Postage 114,000 25,217 (88,783) -77.9%
Printing and Binding Contracts 80,416 18,342 (62,074) -77.2%
Informational Services 10,810 6,858 (3,952) -36.6%
Rent and Maintenance 107,946 107,116 (830) -0.8%
Office Supplies 20,530 12,307 (8,223) -40.1%
Equipment 7,000 0 (7,000) 0.0%
Miscellaneous Administrative Expenses 31,450 25,860 (5,590) -17.8%
Subtotal Administrative Expenses 372,152 195,700 (176,452) -47.4%
Data Processing Expenses
Professional Services 367,505 151,881 (215,624) -58.7%
Telecommunication Services 17,501 9,378 (8,123) -46.4%
Rent and Maintenance 3,025 3,851 826 27.3%
Office Supplies 3,956 0 (3,956) 0.0%
Equipment - Telecommunications 94,000 2,456 (91,544) -97.4%
Subtotal Data Processing Expenses 485,987 167,566 (318,421) -65.5%
Total Expenses 4,194,291 3,127,385 (1,066,906) -25.4%
Total Investment Expenses Only 695,750 573,898 (121,852) -17.5%
Total Data Processing Expenses Only 485,987 167,566 (318,421) -65.5%
Total except Investment and Data Processing Expenses 3,012,554 2,385,921 (626,633) -20.8%
Thursday, February 23, 2017
SCHEDULE II
Comparison of FY2017 Budget to Actual Expenses
7 Months Ended January 31, 2017 Year to Date Comparison
126
Expenses of Board
Trustee January Trustee Meeting 105.76$
Trustee January Trustee Meeting 236.22
Trustee January Trustee Meeting 121.26
Trustee January Trustee Meeting 142.95
Trustee January Trustee Meeting 164.76
770.95
Communications
Ala Carte Courier Courier services 791.00
AT&T Wireless, OneNet charges 238.91
BLR/HCPRO - Business & Legal Resources Informational services 479.00
Cox Communications Cable charges 43.40
D. J./Barron's Information services 26.00
JP Morgan Chase Bank, NA Account analysis bank fees - November, December 1,313.55
Journal Record Publishing Company Information services & legislative training 2,670.00
Office of Management and Enterprise Services Telecommunications, transaction, IT support fees: Nov.-Jan. 36,807.24
Thomson West Legal information services - December 253.00
42,622.10
Contingency, Maintenance, Insurance, Rent, Etc.
City Bites December Board meeting supplies 56.47
DCAM Fleet Management Van rental for retirement Seminars 200.15
Department of Libraries Records storage - November 489.90
Dunkin Donuts December Board meeting supplies 12.57
Kiamichi Opportunities Kitchen/meeting supplies 187.00
National Association of State Retirement Admin. Registration 600.00
Newview Oklahoma First-aid and office supplies 43.81
Office of Management and Enterprise Services Office rent - January 13,195.27
Office of Management and Enterprise Services Directors/Officers liability insurance 2,498.88
Oklahoma Publishing Company (OPUBCO) Employment advertisement 936.10
PF Chang's Catering December Board meeting catering 289.45
Precision Document Solutions Printer maintenance 734.41
Standley Systems, LLC Copier leases 4,337.02
Staples Office supplies 699.91
Tyler Technologies - Tulsa County Records Records access 30.00
Walker Companies Office supplies 87.46
24,398.40
CLAIMS FOR AUTHORIZED EXPENDITURES
JANUARY 31, 2017
127
Investment Expenditures
Bogdahn Consulting Investment consultant fees: December 88,500.00$
Northern Trust Custodial Bank fees through December 2016 12,500.00
101,000.00
Professional Services, Workers Comp Insurance
Central Research, Inc. Death check services: December 595.00
Dathan D. Jay, MD Medical Board - January 300.00
Eide Bailly, LLP Audit Services 6,800.00
Gabriel, Roeder, Smith, & Co. Actuarial fees - December 962.50
Gay Abston Tudor Administrative law service 1,575.00
George R. Jay, MD Medical Board - January 300.00
ICE Miller Legal fees - December 2,734.02
Majority Plus, LLC Lobbyist service - December 3,750.00
MY Consulting Inc. ALICE/Client server development - November 27,561.50
Office of Management and Enterprise Services Interagency mail/postage/printing 3,639.93
Peyton Osborne, MD Medical Board - January 300.00
State Auditor and Inspector Proportionate share of NEPC contract 5,336.70
Stinnett & Associates LLC Audit services - November 9,423.00
The Meadows Document destruction 360.00
63,637.65
Salaries and Fringe Benefits
Salaries Administrative department 30,189.14
Salaries Finance/Accounting department 29,662.44
Salaries Client Services department 90,762.26
Salaries Investment department 19,984.81
Salaries IT department 7,236.92
Longevity Payroll 2,450.00
Education Loan Incentives 8,019.31
Excess Benefit Allowance 3,348.20
FICA/MQFE Social Security and Medicare 14,211.29
Oklahoma State Deferred Savings Incentive Plan Savings incentive plan and administrative fee 871.36
Oklahoma Group Insurance Employee health, dental, and life 33,859.79
Teachers' Retirement System of Oklahoma Employees' retirement contributions 36,496.87
277,092.39
Grand Total 509,521.49$
JANUARY 31, 2017
CLAIMS FOR AUTHORIZED EXPENDITURES
128
General Counsel’s Report
1. State Credit update and coordination
2. Member overpayment collections
3. Ice Miller communications regarding 403(b)
4. Two new Investment Manager Agreements for MacKay Shields
5. Cybersecurity audit research and response
6. 1099-R research
7. Project meeting with MyConsulting Group
8. IT Risk Assessment
129