Investment UpdateAlbuquerque Community Foundation

June 24, 2019

2018 CYTD 2019 RVK Since Inception(4/1/2017) 3 Years 5 Years 10 Years

ACF (Gross) -1.9% 7.3% 8.2% 9.3% 5.5% 8.2%Median E&F -5.0% 8.2% 6.4% 8.1% 5.3% 9.5%Rank 16 68 9 15 45 82

-2.4%

6.0% 6.6%7.8%

4.6%6.7%

-5.4%

6.9%5.7%

7.0%

3.4%5.8%

7.1%

4.1%

7.5% 7.4% 6.7% 7.1%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

2018 CYTD 2019 RVK Since Inception(4/1/2017)

3 Years 5 Years 10 Years

ACF (Net) Policy Index CPI + 5.1%

Investment Performance UpdateNet of Fees Performance

As of May 31, 2019

Performance is preliminary and subject to change. Returns are annualized for periods greater than one year.The Policy Index currently consists of 59% MSCI ACW IM Index (USD) (Net), 13% Fixed Income Custom Index, 5% Real Asset Custom Index, 13% NCREIF ODCE Index (AWA) (Net), and 10% HFRI Asset Wtd Comp Index.Peer comparison is available quarterly on a gross of fees basis. Population of the All Endowment & Foundation – Total Fund universe as of 3/31/19 = 1,009.

Gross of Fees PerformanceAs of March 31, 2019

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Asset Allocation

Asset Allocation

Target Allocation

Differences vs. Target

($) (%) (%) (%)Total Fund 84,715,100 100 100 -Public Equity 40,470,925 48 46 2Private Equity 8,038,816 10 13 -4Fixed Income 11,351,368 13 13 0Real Assets 4,417,453 5 5 0Real Estate 11,308,776 13 13 0Multi-Strategy 8,616,838 10 10 0Cash Equivalents 510,925 1 0 1

Asset Allocation vs. Target Allocation

$30

$40

$50

$60

$70

$80

$90

Mar

ket V

alue

(Milli

ons)

Growth of Assets - 10 Years

Total Fund Composite Policy Index

Asset Allocation and Growth

ACF: $84.7 M

Policy Index: $70.5 M

As of May 31, 2019. Performance is net of fees. Market values and performance are preliminary and subject to change. Allocations may not sum to 100% exactly due to rounding.

Over the past 10 years, the

Foundation has grown from $36.9 million to $84.7 million today.

The portfolio is currently in the process of transitioning to the new long-term target asset allocation.

Since RVK Inception

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Key Drivers of 2018 Performance

1. Negative: Exposure to Public Equities– Global equity markets returned -10.1% in 2018 while US fixed income markets

were flat, returning 0.0%.

2. Positive: Meaningful Exposure to Alternative Investments– Exposure to multi-strategy (hedge funds) and real estate contributed positively to

overall returns.– ACF’s 2018 performance ranked in the top quartile of its peers and

outperformed the policy index by 3.0%.

3. Positive: Active Manager Performance– The majority of major asset classes exceeded their respective benchmark

returns, including public equities, real assets, and multi-strategy.

Allocations and returns are as of December 31, 2018. Asset class returns reflect broad market indices.

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2018 Target Portfolio

2018-2019 Completed InitiativesRVK and the Investment Committee continue to monitor and evaluate opportunities to increase the likelihood of meeting the Foundation’s long-term objectives.

2018-2019 Completed Initiatives:• Asset Allocation Adjustments

– Modest increase to long-term strategic Fixed Income allocation

• Spending Policy Analysis– Confirming appropriateness of spending rate

• Additional Real Estate Commitments– New and existing real estate managers

• Updated Private Equity Commitment Schedule

– Including new commitments to achieve long-term target

Public Equity48%

Private Equity13%

Fixed Income11%

Real Assets5%

Real Estate13%

Multi-Strategy10%

Public Equity46% (-2%)

Private Equity13%

Fixed Income13% (+2%)

Real Assets5%

Real Estate13%

Multi-Strategy10%

Number of investment managers excludes private equity commitments and cash.

New Target Portfolio

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Upcoming Initiatives

• Updated Spending Policy Analysis– Annual review of spending policy rate and long-term sustainability

• Private Equity & Real Estate Commitments– 2019 Commitments– Ongoing Monitoring of Allocation Pacing

• Complete Multi-Strategy Restructure– Remaining River Birch liquidation proceeds to be used for Hudson Bay

• Ongoing Review & Benchmarking of Investment Managers

• Ongoing Review of Investment Policy & Asset Allocation

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Market Performance (%) Asset Class 2018 CYTD 1Year

3Years

5Years

10Years

Russell 3000 US Stocks -5.2 10.9 2.5 11.6 9.3 13.9MSCI EAFE (Net) Non-US Developed Stocks -13.8 7.6 -5.8 5.8 1.3 6.2MSCI EM (Net) Emerging Market Stocks -14.6 4.1 -8.7 9.9 1.8 5.0Bloomberg US Agg Bond US Bonds 0.0 4.8 6.4 2.5 2.7 3.8NCREIF ODCE (Gross)* Private Real Estate 8.4 1.4 7.5 8.0 10.2 8.7

As of 12/31/2018 12/31/2017 12/31/2016 12/31/2015 10-Yr 20-Yr 40-Yr

Treasury - 10 Year 2.14% 5/31/2019 2.69% 2.40% 2.45% 2.27% 2.50% 3.55% 6.14%CPI YoY (Headline) 1.80% 5/31/2019 1.90% 2.20% 1.70% 0.70% 1.65% 2.19% 3.38%Unemployment Rate 3.60% 5/31/2019 3.90% 4.10% 4.60% 5.00% 6.58% 5.90% 6.23%WTI Crude Oil per Barrel $54 5/31/2019 $45 $60 $54 $37 $73 $61 $43US Dollar Total Weighted Index 92.52 5/24/2019 91.79 87.47 95.76 94.46 81.81 86.2 92.86Gold Spot per Oz $1,305 5/31/2019 $1,282 $1,303 $1,152 $1,061 $1,322 $901 $648

AverageCapital Markets & Economic Update

• Fourth quarter of 2018 was characterized by a heightened level of volatility and negative returns for the majority of risk assets.

• Since the fourth quarter selloff, global equity markets have continued their strong rebound as the S&P 500 reached its all-time high in April due to robust corporate earnings and expectations of accommodative central bank policies.

As of May 31, 2019, unless noted otherwise. Performance for NCREIF ODCE (Gross) is as of March 31, 2019 and available quarterly.

Page 7

Forward-Looking Themes

• Lower Long-Term Return Expectations– Long-term returns for diversified portfolios will likely be lower than experienced

in recent history as prices for risk assets remain relatively high and credit spreads remain tight (i.e. expensive).

• Mixed Messaging on Monetary Policy– In March the Federal Open Market Committee maintained policy rates in the

range of 2.25% to 2.50%, after having increased steadily from 0.00-0.25% since December 2015.

– The yield curve has continued to flatten and even invert across certain maturities.

• Relatively Expensive U.S. Stock Market– Prices for US stocks remain well above their historical averages. Foreign stock

prices are closer to historical averages.

• Potential Impact of Geopolitical Events– Developments concerning US trade policy, China, and Brexit could impact future

market volatility.Page 8

Disclaimer of Warranties and Limitation of Liability - This document was prepared by RVK, Inc. (RVK) and may include information and data from some or all of the following sources: client staff; custodian banks; investment managers; specialty investment consultants; actuaries; plan administrators/record-keepers; index providers; as well as other third-party sources as directed by the client or as we believe necessary or appropriate. RVK has taken reasonable care to ensure the accuracy of the information or data, but makes no warranties and disclaims responsibility for the accuracy or completeness of information or data provided or methodologies employed by any external source. This document is provided for the client’s internal use only and does not constitute a recommendation by RVK or an offer of, or a solicitation for, any particular security and it is not intended to convey any guarantees as to the future performance of the investment products, asset classes, or capital markets.