vkparis reports 5000730 032019 coverpage portland 1 1900047 · 16.33 qtd 13.65 14.58 9.98 10.65...

Municipality of Anchorage Trust FundMeeting Materials

May 8, 2019

tamara.carlton

Text Box

Agenda Item II.C, Agenda Item III.D.

Table of Contents

• 1Q2019 Executive Summary Tab 1

• 1Q2019 Performance Report Tab 2

• Private Markets Education & Asset Allocation Update Tab 3

Municipality of Anchorage Trust Fund

Period Ended: March 31, 2019

Capital Markets Review As of March 31, 2019

Economic Indicators Mar-19 Dec-18 Mar-18 Mar-16 20 Yr2.43 ▲ 2.40 1.68 0.25 1.911.79 ▲ 1.49 2.04 1.51 1.861.87 ▲ 1.71 2.06 1.63 2.031.9 ─ 1.9 2.4 0.9 2.23.8 ▼ 3.9 4.0 5.0 5.93.2 ▲ 3.0 2.6 1.6 2.2

55.3 ▲ 54.3 59.3 51.2 52.892.07 ▲ 91.79 86.37 89.72 86.2660.1 ▲ 45.4 64.9 38.3 60.6

1,292 ▲ 1,282 1,326 1,233 892Market Performance (%) CYTD 1 Yr 5 Yr 10 Yr

13.65 9.50 10.91 15.9214.58 2.05 7.05 15.369.98 -3.71 2.33 8.96

10.65 -9.36 4.47 12.769.93 -7.41 3.68 8.952.94 4.48 2.74 3.770.60 2.12 0.74 0.431.42 7.52 10.17 8.74

16.33 20.86 9.12 18.284.59 0.11 2.20 3.546.32 -5.25 -8.92 -2.56

Russell 2000MSCI EAFE (Net)MSCI EAFE SC (Net)MSCI Emg Mkts (Net)Bloomberg US Agg Bond

Key Economic Indicators

Treasury Yield Curve (%)

Key Economic IndicatorsRisk assets and fixed income markets performed well over the first quarter, largely driven by a more accommodative stance by the Federal Open Market Committee (“FOMC”). The global equity market, as represented by the MSCI All Country World Index, rose over 12% during the quarter, while fixed income markets benefited from the shift in interest rate expectations. Volatility markets also declined back to record low levels on the message of greater accommodation by the FOMC. Positive returns were generated despite declining growth forecasts in Asia and Europe, weak global inflation, market uncertainty caused by geopolitical risks, such as Brexit, and global markets destabilized by ongoing trade wars. At its March meeting, the FOMC maintained policy rates in the range of 2.25% to 2.50%. Interest rates declined notably over the period amidst signs of weakness in economic growth and a continued lack of inflationary pressure. During the quarter, the 10-year nominal Treasury yield fell to 2.39%, a level not seen since 2017, while the yield curve continued to flatten and even invert across certain maturities. However, the labor market hasn't reflected recessionary fears as US employment remains at record levels.

First Quarter Economic Environment

UnemploymentRate (%)

Since 1948

CPI Year-over-Year (% change)

Since 1914

US Govt Debt (% of GDP)Since 1940

VIX Index(Volatility)Since 1990

Consumer ConfidenceSince 1967

Unemployment Rate (%)

Federal Funds Rate (%)Breakeven Infl. - 5 Yr (%)Breakeven Infl. - 10 Yr (%)CPI YoY (Headline) (%)

Real GDP YoY (%)

USD Total Wtd IdxWTI Crude Oil per Barrel ($)Gold Spot per Oz ($)

S&P 500 (Cap Wtd)

PMI - Manufacturing

4.596.32

ICE BofAML 3 Mo US T-BillNCREIF ODCE (Gross)FTSE NAREIT Eq REIT (TR)HFRI FOF CompBloomberg Cmdty (TR)

9.932.940.601.42

16.33

QTD13.6514.589.98

10.65

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

3M 6M 1Y 2Y 5Y 7Y 10Y 20Y 30Y

Mar-19 Dec-18 Mar-18 Mar-17 Mar-16

0

2

4

6

8

10

12

20

40

60

80

100

120

0

10

20

30

40

50

60

70

20

40

60

80

100

120

140

160

-20-15-10-505

1015202530

1.9

Treasury data courtesy of the US Department of the Treasury. Economic data courtesy of Bloomberg Professional Service.

Asset Allocation by Manager Asset Allocation vs. Target Allocation

Schedule of Investable Assets

Asset Allocation vs. Target Allocation Differences

March 31, 2019 : $160,134,825

Vanguard Instl Indx;Inst (VINIX) 47,199,201 29.47American Funds EuPc;F3 (FEUPX) 19,887,856 12.42TIF:Internatl Equity;Prm (TFEQX) 19,377,363 12.10Garcia Hamilton Core Agg (SA) 19,264,031 12.03FIAM Core Plus LLC (CF) 19,177,639 11.98UBS Trumbull Property (CF) 12,915,969 8.07Western Asset Floating Rate High Income (CF) 5,204,351 3.25RBC BlueBay EM Debt;I (RBESX) 4,483,786 2.80Ashmore:EMs Tot Rtn;Inst (EMKIX) 4,415,065 2.76Vanguard Md-Cp I;Adm (VIMAX) 4,140,790 2.59BlackRock:Adv SC Cr;Inst (BDSIX) 4,048,967 2.53Wells Fargo Cash 19,807 0.01

Market Value($)

Allocation(%)

Target(%)

Min(%)

Max(%)

Total Fund 160,134,825 100.00 100.00 - -Domestic Equity 55,388,958 34.59 35.00 30.00 40.00International Equity 39,265,219 24.52 25.00 22.00 28.00Domestic Fixed Income 38,441,670 24.01 24.00 21.00 27.00Bank Loans 5,204,351 3.25 3.00 0.00 5.00EMD 8,898,851 5.56 5.00 0.00 8.00Real Estate 12,915,969 8.07 8.00 6.00 10.00Cash Equivalents 19,807 0.01 0.00 0.00 15.00

Allocation Differences

0.00% 0.60% 1.20%-0.60 %-1.20 %

Cash Equivalents

Real Estate

EMD

Bank Loans

Domestic Fixed Income

International Equity

Domestic Equity

0.01%

0.07%

0.56%

0.25%

0.01%

-0.48 %

-0.41 %

Periods EndingBeginning

Market Value ($)Net

Cash Flow ($)Gain/Loss ($)

EndingMarket Value ($)

% Return

CYTD 151,429,716 -4,050,796 12,755,906 160,134,825 8.43

Municipality of Anchorage Trust FundAsset Alloc. by Manager, Asset Allocation vs. Target & Schedule of Investable Assets

As of March 31, 2019

Allocations shown may not sum up to 100% exactly due to rounding. Performance shown is net of fees.

Asset Allocation by Theme Thematic Analysis - October 1, 1999 to March 31, 2019

Asset Allocation by Liquidity Correlation Matrix - 10 Years

A B C D

A 1.00B 0.64 1.00C -0.30 -0.37 1.00D 0.50 0.81 -0.06 1.00A = HFRI EH: Eq Mkt Neut Index (Alpha)B = MSCI ACW Index (USD) (Gross) (Capital Appreciation)C = Bloomberg US Gov't Bond Index (Capital Preservation)D = Real Return Custom Index (Inflation)

RVK Liquidity Rating 83

Municipality of Anchorage Trust FundTotal Fund Thematic and Liquidity Analysis


Asset Allocation by Theme is based on dedicated manager allocations; as such, thematic allocations are approximations. The RVK Liquidity Rating is calculated using beginning of month investment weights applied to each corresponding asset class liquidity rating.

Performance Attribution

SAA: 8.61% TAA: -0.21 % SS: -0.03 % MS: 0.06%

Municipality of Anchorage Trust FundTotal Fund Attribution - IDP

1 Quarter Ending March 31, 2019

Performance shown is net of fees. Calculation is based on monthly periodicity.


SAA: 3.83% TAA: 0.33% SS: 0.01% MS: -0.69 %


1 Year Ending March 31, 2019

Performance shown is net of fees. Calculation is based on monthly periodicity.

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

60.00

68.00

76.00

US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash

Total Fund 34.59 (75) 24.52 (5) 27.26 (60) 5.56 (11) 0.00 8.07 (50) 0.01 (100)

5th Percentile 61.03 24.26 46.20 8.83 31.45 14.39 7.001st Quartile 49.06 18.14 35.11 4.95 10.98 10.45 2.35Median 43.61 14.29 29.77 4.54 6.67 8.03 1.053rd Quartile 34.36 11.95 22.81 3.86 4.57 5.37 0.4995th Percentile 24.48 7.13 16.07 2.06 0.92 3.83 0.07

Population 313 286 276 87 46 166 222

Municipality of Anchorage Trust FundAll Public Plans (<$250M)Plan Sponsor TF Asset Allocation


Parentheses contain percentile ranks.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Total Fund 8.53 (58) 8.53 (58) 3.85 (63) 8.84 (21) 6.32 (33) 7.92 (23) 10.61 (21) -4.16 (37) 16.76 (14) 6.58 (73)Target Allocation Index 8.61 (57) 8.61 (57) 3.83 (63) 8.19 (54) 6.14 (40) 7.39 (45) 9.88 (43) -4.92 (61) 15.80 (29) 7.48 (47)

5th Percentile 10.29 10.29 6.12 9.62 7.02 8.68 11.31 -0.57 18.27 10.201st Quartile 9.39 9.39 5.08 8.74 6.41 7.86 10.39 -3.61 15.91 8.19Median 8.77 8.77 4.15 8.26 5.95 7.24 9.64 -4.65 14.52 7.343rd Quartile 7.88 7.88 3.32 7.53 5.33 6.68 8.69 -5.38 13.10 6.4595th Percentile 6.25 6.25 2.06 5.54 4.02 4.95 7.40 -7.06 8.82 4.70

Population 211 211 205 198 188 178 145 145 146 149

Municipality of Anchorage Trust FundAll Public Plans (<$250M)Plan Sponsor Peer Group Analysis


Performance shown is gross of fees. Composite performance prior to January 2016 consists of gross performance for separate accounts and commingled fund investments, and net performance for mutual fund investments. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

Total Fund 8.43 8.43 3.48 8.41 5.95 7.58 10.31 -4.49 16.32 5.67 10/01/1999

Target Allocation Index 8.61 8.61 3.83 8.19 6.14 7.39 9.88 -4.92 15.80 5.37Difference -0.18 -0.18 -0.35 0.22 -0.19 0.19 0.43 0.43 0.52 0.30

Consumer Price Index+4.25% 2.24 2.24 6.19 6.54 5.78 5.79 6.12 6.24 6.45 6.49Difference 6.19 6.19 -2.71 1.87 0.17 1.79 4.19 -10.73 9.87 -0.82

Domestic Equity 14.11 14.11 8.90 13.28 9.96 12.28 15.67 -4.88 22.05 6.30 10/01/1999

Russell 3000 Index 14.04 14.04 8.77 13.49 10.36 12.63 16.00 -5.24 21.13 6.62Difference 0.07 0.07 0.13 -0.21 -0.40 -0.35 -0.33 0.36 0.92 -0.32

Domestic Large Cap Equity 13.72 13.72 9.53 13.43 10.48 12.74 15.72 -4.42 23.32 6.25 10/01/1999

Russell 1000 Index 14.00 14.00 9.30 13.52 10.63 12.79 16.05 -4.78 21.69 6.50Difference -0.28 -0.28 0.23 -0.09 -0.15 -0.05 -0.33 0.36 1.63 -0.25

Vanguard Instl Indx;Inst (VINIX) 13.65 13.65 9.47 13.48 10.88 12.82 15.91 -4.42 21.79 6.19 10/01/1999

S&P 500 Index (Cap Wtd) 13.65 13.65 9.50 13.51 10.91 12.85 15.92 -4.38 21.83 6.18Difference 0.00 0.00 -0.03 -0.03 -0.03 -0.03 -0.01 -0.04 -0.04 0.01

IM U.S. Large Cap Core Equity (MF) Median 13.12 13.12 7.74 12.37 9.37 11.58 14.58 -5.60 21.17 5.84Rank 31 31 22 23 13 12 14 31 39 40

Domestic Mid Cap Equity 16.82 16.82 6.03 11.65 8.88 11.81 16.68 -9.23 19.24 8.65 07/01/2006

Vanguard Spl Mid Cap Index 16.79 16.79 5.99 11.63 8.89 11.83 16.72 -9.22 19.30 8.68Difference 0.03 0.03 0.04 0.02 -0.01 -0.02 -0.04 -0.01 -0.06 -0.03

Vanguard Md-Cp I;Adm (VIMAX) 16.77 16.77 5.98 11.59 8.85 11.78 16.67 -9.23 19.25 8.64 07/01/2006

Vanguard Spl Mid Cap Index 16.79 16.79 5.99 11.63 8.89 11.83 16.72 -9.22 19.30 8.68Difference -0.02 -0.02 -0.01 -0.04 -0.04 -0.05 -0.05 -0.01 -0.05 -0.04

IM U.S. Mid Cap Core Equity (MF) Median 14.58 14.58 2.76 9.32 6.19 9.77 14.21 -11.57 15.28 7.19Rank 8 8 16 23 13 13 6 23 19 11

Domestic Small Cap Equity 16.05 16.05 4.88 11.95 4.48 6.95 13.89 -8.83 10.79 5.37 01/01/2000

Small Cap Custom Index 14.58 14.58 2.05 11.46 6.46 10.35 15.47 -11.01 14.65 7.69Difference 1.47 1.47 2.83 0.49 -1.98 -3.40 -1.58 2.18 -3.86 -2.32

BlackRock:Adv SC Cr;Inst (BDSIX) 16.05 16.05 4.88 - - - - -8.83 10.79 8.51 12/01/2016

Russell 2000 Index 14.58 14.58 2.05 12.92 7.05 10.74 15.36 -11.01 14.65 8.19Difference 1.47 1.47 2.83 - - - - 2.18 -3.86 0.32

IM U.S. Small Cap Core Equity (MF) Median 11.60 11.60 -0.66 10.15 5.98 10.00 15.24 -12.30 10.99 5.09Rank 4 4 7 - - - - 14 52 12

Municipality of Anchorage Trust FundComparative Performance


Performance shown is net of fees. Performance is annualized for periods greater than one year.



QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

International Equity 9.94 9.94 -6.01 7.29 2.21 5.46 8.83 -14.87 26.99 5.41 10/01/1999

MSCI ACW Ex US Index (USD) (Net) 10.31 10.31 -4.22 8.09 2.57 4.72 8.85 -14.20 27.19 -Difference -0.37 -0.37 -1.79 -0.80 -0.36 0.74 -0.02 -0.67 -0.20 -

TIF:Internatl Equity;Prm (TFEQX) 6.64 6.64 -7.45 5.27 0.20 4.09 7.88 -14.87 22.92 2.09 07/01/2008

MSCI ACW Ex US Val Index (USD) (Net) 8.33 8.33 -5.39 7.73 1.08 3.72 8.19 -13.97 22.66 1.73Difference -1.69 -1.69 -2.06 -2.46 -0.88 0.37 -0.31 -0.90 0.26 0.36

IM ACWI Ex US Value (MF) Median 9.09 9.09 -8.16 5.11 -0.39 3.75 7.69 -16.03 22.88 1.36Rank 95 95 36 47 43 34 40 11 47 32

American Funds EuPc;F3 (FEUPX) 13.21 13.21 -4.65 9.26 4.19 6.79 9.80 -14.91 31.03 6.03 10/01/1999

MSCI ACW Ex US Grth Index (USD) (Net) 12.31 12.31 -3.05 8.42 4.01 5.68 9.47 -14.43 32.01 -Difference 0.90 0.90 -1.60 0.84 0.18 1.11 0.33 -0.48 -0.98 -

IM ACWI Ex US Growth (MF) Median 13.19 13.19 -4.66 8.89 3.91 6.20 9.86 -14.32 32.37 4.80Rank 49 49 50 43 44 33 54 57 66 11

Domestic Fixed Income 3.35 3.35 4.01 3.94 3.38 3.28 5.86 0.11 4.63 5.39 10/01/1999

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 4.86Difference 0.41 0.41 -0.47 1.91 0.64 0.80 2.09 0.10 1.09 0.53

FIAM Core Plus LLC (CF) 4.14 4.14 4.70 3.81 3.59 3.50 6.09 -0.54 4.80 5.08 10/01/2007

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 4.00Difference 1.20 1.20 0.22 1.78 0.85 1.02 2.32 -0.55 1.26 1.08

IM U.S. Broad Market Core+ Fixed Income (MF) Median 3.54 3.54 3.99 2.82 2.73 2.98 5.29 -0.94 4.49 4.49Rank 19 19 18 14 10 24 21 35 38 18

Garcia Hamilton Core Agg (SA) 2.48 2.48 3.83 - - - - - - 3.43 02/01/2018

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 3.55Difference -0.46 -0.46 -0.65 - - - - - - -0.12

IM U.S. Broad Market Core Fixed Income (MF) Median 3.23 3.23 4.09 2.13 2.49 2.45 4.50 -0.63 3.58 3.08Rank 91 91 65 - - - - - - 23




QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

Bank Loans 3.68 3.68 2.56 5.42 - - - -0.08 3.15 5.06 01/01/2016

S&P/LSTA Performing Loans Index 3.98 3.98 3.02 5.80 3.95 4.58 8.14 0.60 4.32 5.88Difference -0.30 -0.30 -0.46 -0.38 - - - -0.68 -1.17 -0.82

Western Asset Floating Rate High Income (CF) 3.68 3.68 2.56 5.42 2.56 - - -0.08 3.15 2.56 04/01/2014

S&P/LSTA Performing Loans Index 3.98 3.98 3.02 5.80 3.95 4.58 8.14 0.60 4.32 3.95Difference -0.30 -0.30 -0.46 -0.38 -1.39 - - -0.68 -1.17 -1.39

IM U.S. Bank Loans (MF) Median 3.78 3.78 2.23 4.80 2.89 3.55 6.49 -0.29 3.59 2.89Rank 59 59 31 27 67 - - 39 72 67

Emerging Markets Debt Composite 6.11 6.11 - - - - - - - 7.22 07/01/2018

EMD Blended Index 4.72 4.72 - - - - - - - 5.73Difference 1.39 1.39 - - - - - - - 1.49

Ashmore:EMs Tot Rtn;Inst (EMKIX) 5.49 5.49 - - - - - - - 6.69 07/01/2018

Ashmore EMD Custom Index 4.51 4.51 1.39 4.85 3.66 3.66 6.54 -2.54 9.89 5.81Difference 0.98 0.98 - - - - - - - 0.88

IM Emerging Markets Debt (MF) Median 5.77 5.77 0.68 5.12 3.56 3.71 7.74 -5.91 10.49 6.23Rank 59 59 - - - - - - - 28

RBC BlueBay EM Debt;I (RBESX) 6.72 6.72 - - - - - - - 7.74 07/01/2018

BlueBay EMD Custom Index 4.93 4.93 -1.78 4.59 2.37 2.44 6.50 -5.15 12.74 5.64Difference 1.79 1.79 - - - - - - - 2.10





QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

Real Estate 0.48 0.48 4.81 5.28 7.47 7.86 6.91 6.04 5.21 4.32 10/01/2007

NCREIF ODCE Index (AWA) (Net) 1.20 1.20 6.55 7.00 9.18 9.75 7.73 7.36 6.66 4.45Difference -0.72 -0.72 -1.74 -1.72 -1.71 -1.89 -0.82 -1.32 -1.45 -0.13

UBS Trumbull Property (CF) 0.48 0.48 4.81 5.31 7.49 7.87 6.92 6.04 5.21 4.33 10/01/2007


Consumer Price Index+5% 2.42 2.42 6.96 7.31 6.55 6.55 6.89 7.01 7.21 6.83Difference -1.94 -1.94 -2.15 -2.00 0.94 1.32 0.03 -0.97 -2.00 -2.50The Target Allocation Index is calculated monthly and consists of 35% Russell 3000 Index, 25% MSCI ACW Ex US Index (USD) (Net), 24% Bloomberg US Agg Bond Index, 3%S&P/LSTA Performing Loans Index, 5% EMD Custom Index and 8% NCREIF-ODCE Index (AWA) (Net) thereafter.The Vanguard Spl Mid Cap Index consists of the S&P MidCap 400 Index (Cap Wtd) through 5/16/2003;MSCI US Mid Cap 450 Index through 1/30/2013;and CRSP US Mid CapIndex thereafter.The Small Cap Custom Index consists of the Russell 2000 Index through 06/2006, the Russell 2000 Growth Index through 11/2016, and the Russell 2000 Index thereafter.The EMD Blended Index is calculated monthly using beginning of month investment weights applied to each corresponding primary benchmark return thereafter.The Ashmore Custom Index consists of 50% JPM EMBI Gbl Dvf'd TR Index (USD), 25% JPM GBI-EM Gbl Dvf'd TR Index (USD) (Unhedged), and 25% JPM ELM+ Index (LC).The BlueBay Custom Index consists of 50% JPM EMBI Gbl Dvf'd TR Index (USD) and 50% JPM GBI-EM Gbl Dvf'd TR Index (USD) (Unhedged).


Growth of $100

Comparative Performance

Vanguard Instl Indx;Inst (VINIX) 50/50 AB Value/SS Growth

99.00

103.00

107.00

111.00

115.00

119.00

123.00

127.00

5/17 8/17 11/17 2/18 5/18 8/18 11/18 2/19 3/19

Jun-2017To

Mar-2019

1Year

3Years

5Years

10Years

Vanguard Instl Indx;Inst (VINIX) 11.34 9.47 13.48 10.88 15.90

S&P 500 Index (Cap Wtd) 11.37 9.50 13.51 10.91 15.92Difference -0.03 -0.03 -0.03 -0.03 -0.02

50/50 AB Value/SS Growth 9.77 6.41 12.21 9.66 15.17


Municipality of Anchorage Trust FundDomestic Large Cap Equity Transition


Performance shown is net of fees and product specific. Calculation is based on monthly periodicity.

Growth of $100


BlackRock:Adv SC Cr;Inst (BDSIX) LKCM:Small Cap Eq;Inst (LKSCX) Russell 2000 Index

88.00

96.00

104.00

112.00

120.00

128.00

136.00

144.00

152.00

11/16 2/17 5/17 8/17 11/17 2/18 5/18 8/18 11/18 3/19

Dec-2016To

Mar-2019

1Year

3Years

5Years

10Years

BlackRock:Adv SC Cr;Inst (BDSIX) 8.50 4.88 13.57 7.86 N/A

Russell 2000 Index 8.19 2.05 12.92 7.05 15.36Difference 0.31 2.83 0.65 0.81 N/A

LKCM:Small Cap Eq;Inst (LKSCX) 11.06 6.87 13.13 5.14 14.27

Russell 2500 Grth Index 14.89 7.54 15.60 9.72 17.50Difference -3.83 -0.67 -2.47 -4.58 -3.23

Municipality of Anchorage Trust FundDomestic Small Cap Equity Transition



Fee Schedule

Market ValueAs of

03/31/2019($)

EstimatedAnnual Fee

($)

EstimatedAnnual Fee

(%)

Total Fund 160,134,825 621,896 0.39

Vanguard Instl Indx;Inst (VINIX) 0.04 % of Assets 47,199,201 16,520 0.04

Vanguard Md-Cp I;Adm (VIMAX) 0.05 % of Assets 4,140,790 2,070 0.05

BlackRock:Adv SC Cr;Inst (BDSIX) 0.50 % of Assets 4,048,967 20,245 0.50

TIF:Internatl Equity;Prm (TFEQX) 0.80 % of Assets 19,377,363 155,019 0.80

American Funds EuPc;F3 (FEUPX) 0.49 % of Assets 19,887,856 97,451 0.49

FIAM Core Plus LLC (CF) 0.25 % of First $50 M0.22 % of Next $50 M0.20 % of Next $100 M0.17 % Thereafter

19,177,639 47,944 0.25

Garcia Hamilton Core Agg (SA) 0.25 % of Assets 19,264,031 48,160 0.25

Western Asset Floating Rate High Income (CF) 0.45 % of First $100 M0.30 % Thereafter

5,204,351 23,420 0.45

Ashmore:EMs Tot Rtn;Inst (EMKIX) 1.02 % of Assets 4,415,065 45,034 1.02

RBC BlueBay EM Debt;I (RBESX) 0.88 % of Assets 4,483,786 39,457 0.88

UBS Trumbull Property (CF) 0.98 % of Assets 12,915,969 126,577 0.98

Municipality of Anchorage Trust FundFee Addendum


Mutual Fund fees are sourced from Morningstar and/or the investment manager.Vanguard Instl Indx;Inst (VINIX) fee is .035%.UBS Trumbull Property (CF) - 0.955% on first $10M, 0.825% on next $15M, 0.805% on next $25M, 0.79% on next $50M,0.67% on next $150M, and 0.60% thereafter. An incentive fee, up to 0.25%, is calculatedquarterly based on trailing 12-month performance.*The fee schedule shown for UBS Trumbull Property (CF) is based on the effective rates as of the most recent quarter end for thecombined assets of Anchorage Police & Fire Retirement System and Municipality of Anchorage, and includes incentive fees.

Municipality of Anchorage Trust Fund

Period Ended: March 31, 2019

• Greenwich Associates* conducted interviews with over

1,000 senior professionals of large plan sponsors and

ranked opinions of their investment consulting

relationships on a series of key metrics, including, but not

limited to:

– Understanding of Client Goals and Objectives

– Advice on Long-term Asset Allocation and Liability Issues

– Proactive Advice and Innovative Ideas

– Credibility with Boards and/or Investment Committees

– Knowledge of Investment Managers

– Advice on DC Plan Structure and Design

– Client Satisfaction with Manager Recommendations

– Responsiveness to Client Requests and Needs

– Competitive Fees

• For a 2nd consecutive year, RVK is 1 of 3 firms among large

US consultants to receive this award.

*Greenwich Associates is the leading provider of global market intelligence and advisory services to the financial services industry. They

conduct an annual survey to institutional investors whereby approx. 1,100 respondents rank their respective investment consulting

relationships on key metrics on a scale from 1 (poor) to 5 (excellent). The award is based upon Greenwich Associates’ 2018 US Institutional

Investors study.

As a valued client, we are humbled by your continued confidence and thankful for your support.

From all of us here at RVK, thank you for the opportunity to serve you!

RVK Honored to Receive 2ND Greenwich Quality Leader

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Capital Markets Review As of March 31, 2019

Economic Indicators Mar-19 Dec-18 Mar-18 Mar-16 20 Yr2.43 ▲ 2.40 1.68 0.25 1.911.79 ▲ 1.49 2.04 1.51 1.861.87 ▲ 1.71 2.06 1.63 2.031.9 ─ 1.9 2.4 0.9 2.23.8 ▼ 3.9 4.0 5.0 5.93.2 ▲ 3.0 2.6 1.6 2.2

55.3 ▲ 54.3 59.3 51.2 52.892.07 ▲ 91.79 86.37 89.72 86.2660.1 ▲ 45.4 64.9 38.3 60.6

1,292 ▲ 1,282 1,326 1,233 892Market Performance (%) CYTD 1 Yr 5 Yr 10 Yr

13.65 9.50 10.91 15.9214.58 2.05 7.05 15.369.98 -3.71 2.33 8.96

10.65 -9.36 4.47 12.769.93 -7.41 3.68 8.952.94 4.48 2.74 3.770.60 2.12 0.74 0.431.42 7.52 10.17 8.74

16.33 20.86 9.12 18.284.59 0.11 2.20 3.546.32 -5.25 -8.92 -2.56

Russell 2000MSCI EAFE (Net)MSCI EAFE SC (Net)MSCI Emg Mkts (Net)Bloomberg US Agg Bond

Key Economic Indicators

Treasury Yield Curve (%)

Key Economic IndicatorsRisk assets and fixed income markets performed well over the first quarter, largely driven by a more accommodative stance by the Federal Open Market Committee (“FOMC”). The global equity market, as represented by the MSCI All Country World Index, rose over 12% during the quarter, while fixed income markets benefited from the shift in interest rate expectations. Volatility markets also declined back to record low levels on the message of greater accommodation by the FOMC. Positive returns were generated despite declining growth forecasts in Asia and Europe, weak global inflation, market uncertainty caused by geopolitical risks, such as Brexit, and global markets destabilized by ongoing trade wars. At its March meeting, the FOMC maintained policy rates in the range of 2.25% to 2.50%. Interest rates declined notably over the period amidst signs of weakness in economic growth and a continued lack of inflationary pressure. During the quarter, the 10-year nominal Treasury yield fell to 2.39%, a level not seen since 2017, while the yield curve continued to flatten and even invert across certain maturities. However, the labor market hasn't reflected recessionary fears as US employment remains at record levels.

First Quarter Economic Environment

UnemploymentRate (%)

Since 1948

CPI Year-over-Year (% change)

Since 1914

US Govt Debt (% of GDP)Since 1940

VIX Index(Volatility)Since 1990

Consumer ConfidenceSince 1967

Unemployment Rate (%)

Federal Funds Rate (%)Breakeven Infl. - 5 Yr (%)Breakeven Infl. - 10 Yr (%)CPI YoY (Headline) (%)

Real GDP YoY (%)

USD Total Wtd IdxWTI Crude Oil per Barrel ($)Gold Spot per Oz ($)

S&P 500 (Cap Wtd)

PMI - Manufacturing

4.596.32

ICE BofAML 3 Mo US T-BillNCREIF ODCE (Gross)FTSE NAREIT Eq REIT (TR)HFRI FOF CompBloomberg Cmdty (TR)

9.932.940.601.42

16.33

QTD13.6514.589.98

10.65

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

3M 6M 1Y 2Y 5Y 7Y 10Y 20Y 30Y

Mar-19 Dec-18 Mar-18 Mar-17 Mar-16

0

2

4

6

8

10

12

20

40

60

80

100

120

0

10

20

30

40

50

60

70

20

40

60

80

100

120

140

160

-20-15-10-505

1015202530

1.9

Treasury data courtesy of the US Department of the Treasury. Economic data courtesy of Bloomberg Professional Service.

US Equity Review As of March 31, 2019

Broad MarketUS equity markets rebounded strongly during the first quarter, with all major indices across size and style finishing in positive territory. The S&P 500 Index returned 13.6% during the quarter, marking its best quarterly return since the third quarter of 2009, and the best first quarter return since 1998.

Market CapSmaller-capitalization stocks outpaced their large-cap counterparts, but the mid-cap segment provided the highest returns.

Style and SectorReturns were positive across all sectors during the quarter, led by technology as the S&P 500 Information Technology Index returned 19.9%. Large- and small-cap growth managers fared moderately well, despite a rally in biotechnology, buoyed by strong performance across broad growth-focused sectors.

Style and Capitalization Market Performance (%)

S&P 500 Index Sector Performance (%)

First Quarter Review

Valuations

US Large-Cap Equity

R1000 12M P/ESince 1995

US Large-Cap Growth Equity

R1000G 12M P/ESince 1995

US Large-Cap Value Equity

R1000V 12M P/ESince 1995

US Small-Cap Equity

R2000 12M P/ESince 1995

US Large-Cap Equity

Shiller S&P 10Y P/ESince 1900

-2.36

3.85

0.17

2.05

6.47

12.75

5.67

9.30

10.43

8.77

9.50

13.10

17.14

11.93

14.58

16.54

16.10

11.93

14.00

13.05

14.04

13.65

-10 -5 0 5 10 15 20 25

R Micro CapR 2000 Growth

R 2000 ValueR 2000

R Mid CapR 1000 Growth

R 1000 ValueR 1000

R Top 200R 3000

S&P 500 QTD

1 Yr

19.33

7.75

-0.43

15.44

3.23

14.89

21.00

-4.67

1.32

10.49

13.19

10.84

13.98

10.30

19.86

17.20

6.59

17.53

8.56

16.43

12.01

15.73

-15 0 15 30

UtilitiesComm Services

Materials

Information TechIndustrials

Health Care

Real EstateFinancials

Energy

Cons Staples

Cons Discretion QTD

1 Yr

0

5

10

15

20

25

30

35

10

15

20

25

30

20

40

60

80

100

10

15

20

25

10

20

30

40

50

Valuation data courtesy of Bloomberg Professional Service and Robert J. Shiller, Irrational Exuberance, Second Edition.P/E metrics shown represent the 5th through 95th percentiles to minimize the effect of outliers.

Non-US Equity Review As of March 31, 2019

Developed MarketsDeveloped international markets generated positive returns during the quarter, but did not keep pace with the strong US equity returns. The positive returns from developed markets were generated despite the continued economic slowdown in Europe.

Emerging MarketsThe emerging markets finished the quarter with similar returns as developed international markets. China was a key driver of emerging market equity returns as it generated the highest return among emerging market countries. This positive quarterly result occurred despite weakening economic growth in China and the ongoing trade dispute with the US.

Market Cap & StyleGrowth stocks significantly outperformed value stocks. Additionally, small cap outperformed large cap in developed international markets, but emerging markets large cap stocks broadly outperformed the stocks of smaller companies.

Developed IntlEquity

MSCI EAFE12M P/E

Since 1995

Intl EquityMSCI ACW x US

12M P/ESince 1995

MSCI Style and Capitalization Market Performance (%)

MSCI Region Performance (%)

EmergingMarkets Equity

MSCI EM12M P/E

Since 1995

Developed Intl Growth Equity

MSCI EAFE Grth12M P/E

Since 1995

Developed Intl Value Equity

MSCI EAFE Val12M P/E

Since 1995


Valuations

-7.41

-3.86

-3.72

-9.36

-1.30

-6.13

-3.71

-4.22

9.93

8.53

10.84

10.65

12.04

7.92

9.98

10.31

-15 -10 -5 0 5 10 15 20 25

Emg Mkts

Pacific

Europe

EAFE SC

EAFE Growth

EAFE Value

EAFE

ACW Ex US QTD

1 Yr

-7.41

3.11

-7.84

4.59

9.86

-0.07

-5.09

9.93

15.37

6.66

12.24

10.08

11.89

10.45

-15 -10 -5 0 5 10 15 20 25

Emg Mkts

Canada

Japan

Pacific ex Japan

Middle East

United Kingdom

Europe Ex UK QTD1 Yr

0

20

40

60

80

100

0

10

20

30

40

0

10

20

30

40

50

60

0

10

20

30

40

50

0

10

20

30

40

50

Valuation data courtesy of Bloomberg Professional Service.P/E metrics shown represent the 5th through 95th percentiles to minimize the effect of outliers.All returns are shown net of foreign taxes on dividends.

Fixed Income Review As of March 31, 2019

Fixed Income Performance (%)Broad MarketAided by US Treasury rates declining across all maturities, the Bloomberg US Aggregate Index began the year strong, returning 2.9% for the quarter. While the rate decline was marginal at the shortest maturities, those dated one-year and longer fell between 0.21% and 0.28% in near-uniform fashion, exacerbating both the flattening and inverting trends of the yield curve. At quarter end, the one-month T-bill had a higher yield than Treasury securities between one- and ten-years.

Credit MarketAs investors returned to their risk-on sentiment, corporate spreads tightened after a brief widening in the fourth quarter to help boost returns in the sector. Lower-rated debt was particularly positive, with the ICE BofAML US High Yield Master II Index returning 7.4%. Emerging Market DebtWhile a strengthening dollar dampened local currency returns, the JPM GBI-EM Global Diversified Index still managed a 2.9% return for the quarter.


Valuations

US Aggregate Bonds

Bloomberg US Agg SpreadsSince 2000

US Corporate Bonds

Bloomberg US Corp Spreads

Since 1989

US CreditBonds

Bloomberg US Credit Spreads

Since 2000

US Treasury Bonds10-Yr US Treasury

YieldsSince 1953

US High-Yield Bonds

Bloomberg US Corp:HY Spreads

Since 2000

-7.58

3.52

-1.57

-0.38

3.33

5.93

3.68

4.42

3.73

4.94

5.54

2.70

4.21

4.48

2.92

6.59

1.74

2.20

3.78

7.26

1.48

2.17

1.81

5.14

3.23

3.19

2.11

2.94

-15 -10 -5 0 5 10 15

JPM GBI-EM Glbl Dvf'd (USD)(Unhedged)

JPM Emg Mkts Bond Global

FTSE Wrld Gov't Bond

Bloomberg Global Agg Bond

CS Leveraged Loan

Bloomberg US Corp Hi Yld

Bloomberg US ABS

Bloomberg US MBS

Bloomberg US Agcy

Bloomberg US Corp Credit

Bloomberg US CMBS Inv Grade

Bloomberg US Trsy US TIPS

Bloomberg US Trsy

Bloomberg US Agg QTD

1 Yr

0

2

4

6

8

10

12

14

0.00.10.20.30.40.50.60.70.80.91.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0123456789

10

Valuation data courtesy of Bloomberg Professional Service.Valuations shown represent the 5th through 95th percentiles to minimize the effect of outliers.

Alternatives Review As of March 31, 2019

General Market - Diversified Inflation Strategies (DIS)Most DIS managers provided strong returns during the first quarter. Performance across managers ranged widely and was bifurcated. The best performing DIS managers generally held significantly larger allocations to asset classes such as REITs, natural resource equities, global listed infrastructure, and commodities, which all rebounded during the first quarter. DIS managers that trailed peers, though still providing positive returns, held larger exposure to inflation linked securities such as TIPS.

General Market - Real EstateCore private real estate returned 1.4% during the first quarter, as tracked by the NCREIF-ODCE Index, with the total return comprised of 1.0% income and 0.4% price appreciation. Investors in publicly traded real estate significantly outperformed their private market counterparts during the first quarter. Publicly traded real estate experienced a snap-back from its negative performance in 2018. The first quarter total return was 16.7%, as measured by FTSE/NAREIT All REITs Index.

General Market - Hedge FundsThe first quarter of 2019 began on a positive note for the hedge fund industry, with each of the major strategy groups posting positive returns. The HFRI Fund Weighted Composite Index produced a return of 5.7%, its best result since the third quarter of 2009, largely driven by gains within the Long/Short Equity universe (“ELS”). The HFRI Asset Weighted Composite Index, which is more balanced across hedge fund strategies, realized a more muted return of 3.1%.

General Market - Global Tactical Asset Allocation (GTAA)Most GTAA managers reported positive returns during the first quarter, though still underperformed a blend of 60% US equity and 40% US fixed income given the strong equity market returns. The positive absolute performance across managers is a reversal from the negative returns generated in 2018 and, more specifically, the fourth quarter. Performance across GTAA managers varied during the quarter, as the strongest performers held higher allocations to US equity and credit sensitive fixed income.

First Quarter Review - Absolute Return

HFRI Hedge Fund Performance (%)

First Quarter Review - Real Assets

Real Asset Performance (%)

5.17

5.98

1.87

3.05

-0.01

1.22

-0.49

-0.19

1.37

0.11

5.25

2.77

4.20

3.95

2.59

3.24

1.29

7.82

5.40

4.59

-5 0 5 10 15

Credit Arb

Merger Arb

Event Driven

Relative Value

Macro

Distressed

Mkt Neutral Eq

Equity Hedge

Conv Arbitrage

HFRI FOF QTD

1 Yr

2.70

15.11

-0.09

-5.25

20.86

6.83

7.52

3.19

16.82

12.39

6.32

16.33

1.80

1.42

-15 -5 5 15 25

Bloomberg US Trsy: US TIPS

Alerian MLP

S&P Glbl Nat. Res. (TR)

Bloomberg Cmdty (TR)

FTSE NAREIT Eq REITs (TR)

NCREIF Property

NCREIF ODCE (Gross) QTD

1 Yr

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

Best34.00 35.03 39.38 8.44 78.51 27.94 22.49 20.00 38.82 30.14 15.02 21.31 37.28 8.35 16.33

26.19 32.18 16.23 5.24 58.21 26.85 15.99 18.23 32.39 19.31 9.59 17.13 33.01 1.87 14.58

21.39 26.34 15.97 2.06 46.78 22.04 13.56 18.06 29.30 13.69 3.20 11.96 25.03 0.01 13.65

21.36 19.31 11.63 -2.35 31.78 18.88 8.29 17.32 22.78 12.50 1.38 11.77 21.83 -1.26 10.65

13.54 18.37 11.17 -10.01 28.01 16.83 7.84 16.35 13.94 5.97 0.55 11.19 14.65 -2.08 9.98

12.17 16.32 10.25 -21.37 27.17 16.36 4.98 16.00 8.96 4.89 0.05 8.77 10.71 -4.03 9.93

7.49 15.79 6.97 -26.16 26.46 15.12 2.11 15.81 7.44 3.64 -0.27 8.52 7.77 -4.38 7.26

5.34 11.86 6.60 -33.79 18.91 15.06 0.10 10.94 2.47 3.37 -0.81 6.67 7.62 -4.62 6.45

4.91 10.39 5.49 -35.65 11.47 10.16 -4.18 8.78 0.07 2.45 -1.44 4.68 7.50 -4.68 6.32

4.55 4.85 5.00 -37.00 11.41 7.75 -5.72 6.98 -2.02 0.04 -3.30 2.65 5.23 -11.01 4.59

3.07 4.34 1.87 -37.74 5.93 6.54 -12.14 4.79 -2.60 -2.19 -4.41 2.18 3.54 -11.25 3.19

2.84 2.72 1.45 -43.38 1.92 6.31 -13.32 4.21 -8.61 -4.90 -4.47 1.00 3.01 -13.79 2.94

2.74 2.07 -1.57 -47.01 0.21 5.70 -15.94 0.11 -8.83 -4.95 -14.92 0.51 1.70 -14.58 1.42

Worst2.43 0.49 -15.70 -53.33 -29.76 0.13 -18.42 -1.06 -9.52 -17.01 -24.66 0.33 0.86 -17.89 0.60

S&P 500 -US Large

Cap

R 2000 -US Small

Cap

MSCI EAFE(Net) - Int'l

Dev.

MSCI EAFESC (Net) -

Int'l SC

MSCI EM(Net) - Int'lEmg Mkts

BloombrgUS Agg

Bond - FI

BloombrgUS Corp Hi

Yield - FI

BloombrgUS Trsy US

TIPS - FI

BloombrgUS Gov

Credit Lng- FI

NCREIFODCE

(Gross) -Real Estate

FTSENAREIT Eq

REITsIndex (TR)

HFRI FOFCompIndex -

ARS

BloombrgCmdty (TR)- Commod.

ICEBofAML 3Mo T-Bill -

Cash Equiv

Annual Asset Class Performance As of March 31, 2019

NCREIF ODCE (Gross) performance is reported quarterly; performance is shown N/A in interim-quarter months.

Asset Allocation by Manager Asset Allocation vs. Target Allocation

Schedule of Investable Assets

Asset Allocation vs. Target Allocation Differences

March 31, 2019 : $160,134,825

Vanguard Instl Indx;Inst (VINIX) 47,199,201 29.47American Funds EuPc;F3 (FEUPX) 19,887,856 12.42TIF:Internatl Equity;Prm (TFEQX) 19,377,363 12.10Garcia Hamilton Core Agg (SA) 19,264,031 12.03FIAM Core Plus LLC (CF) 19,177,639 11.98UBS Trumbull Property (CF) 12,915,969 8.07Western Asset Floating Rate High Income (CF) 5,204,351 3.25RBC BlueBay EM Debt;I (RBESX) 4,483,786 2.80Ashmore:EMs Tot Rtn;Inst (EMKIX) 4,415,065 2.76Vanguard Md-Cp I;Adm (VIMAX) 4,140,790 2.59BlackRock:Adv SC Cr;Inst (BDSIX) 4,048,967 2.53Wells Fargo Cash 19,807 0.01

Market Value($)

Allocation(%)

Target(%)

Min(%)

Max(%)

Total Fund 160,134,825 100.00 100.00 - -Domestic Equity 55,388,958 34.59 35.00 30.00 40.00International Equity 39,265,219 24.52 25.00 22.00 28.00Domestic Fixed Income 38,441,670 24.01 24.00 21.00 27.00Bank Loans 5,204,351 3.25 3.00 0.00 5.00EMD 8,898,851 5.56 5.00 0.00 8.00Real Estate 12,915,969 8.07 8.00 6.00 10.00Cash Equivalents 19,807 0.01 0.00 0.00 15.00

Allocation Differences

0.00% 0.60% 1.20%-0.60 %-1.20 %

Cash Equivalents

Real Estate

EMD

Bank Loans

Domestic Fixed Income

International Equity

Domestic Equity

0.01%

0.07%

0.56%

0.25%

0.01%

-0.48 %

-0.41 %

Periods EndingBeginning

Market Value ($)Net

Cash Flow ($)Gain/Loss ($)

EndingMarket Value ($)

% Return

CYTD 151,429,716 -4,050,796 12,755,906 160,134,825 8.43

Municipality of Anchorage Trust FundAsset Alloc. by Manager, Asset Allocation vs. Target & Schedule of Investable Assets


Allocations shown may not sum up to 100% exactly due to rounding. Performance shown is net of fees.

Asset Allocation by Theme Thematic Analysis - October 1, 1999 to March 31, 2019

Asset Allocation by Liquidity Correlation Matrix - 10 Years

A B C D

A 1.00B 0.64 1.00C -0.30 -0.37 1.00D 0.50 0.81 -0.06 1.00A = HFRI EH: Eq Mkt Neut Index (Alpha)B = MSCI ACW Index (USD) (Gross) (Capital Appreciation)C = Bloomberg US Gov't Bond Index (Capital Preservation)D = Real Return Custom Index (Inflation)

RVK Liquidity Rating 83

Municipality of Anchorage Trust FundTotal Fund Thematic and Liquidity Analysis


Asset Allocation by Theme is based on dedicated manager allocations; as such, thematic allocations are approximations. The RVK Liquidity Rating is calculated using beginning of month investment weights applied to each corresponding asset class liquidity rating. Please see the Glossary for additional information regarding liquidity, thematic and custom index descriptions.


SAA: 8.61% TAA: -0.21 % SS: -0.03 % MS: 0.06%


1 Quarter Ending March 31, 2019

Performance shown is net of fees. Calculation is based on monthly periodicity. See Glossary for additional information regarding the Total Fund Attribution - IDP calculation.


SAA: 3.83% TAA: 0.33% SS: 0.01% MS: -0.69 %


1 Year Ending March 31, 2019

Performance shown is net of fees. Calculation is based on monthly periodicity. See Glossary for additional information regarding the Total Fund Attribution - IDP calculation.

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

60.00

68.00

76.00

US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash

Total Fund 34.59 (75) 24.52 (5) 27.26 (60) 5.56 (11) 0.00 8.07 (50) 0.01 (100)

5th Percentile 61.03 24.26 46.20 8.83 31.45 14.39 7.001st Quartile 49.06 18.14 35.11 4.95 10.98 10.45 2.35Median 43.61 14.29 29.77 4.54 6.67 8.03 1.053rd Quartile 34.36 11.95 22.81 3.86 4.57 5.37 0.4995th Percentile 24.48 7.13 16.07 2.06 0.92 3.83 0.07

Population 313 286 276 87 46 166 222

Municipality of Anchorage Trust FundAll Public Plans (<$250M)Plan Sponsor TF Asset Allocation


Parentheses contain percentile ranks.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016



Population 211 211 205 198 188 178 145 145 146 149

Municipality of Anchorage Trust FundAll Public Plans (<$250M)Plan Sponsor Peer Group Analysis



Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016


5th Percentile 10.58 10.58 5.60 9.81 6.89 8.50 11.44 0.01 18.78 10.731st Quartile 9.42 9.42 3.92 8.72 5.91 7.50 10.27 -3.75 16.45 8.78Median 8.48 8.48 3.06 7.97 5.07 6.54 9.28 -5.55 14.91 7.393rd Quartile 7.13 7.13 2.41 7.04 4.15 5.40 8.32 -6.67 12.83 6.0895th Percentile 2.70 2.70 1.12 3.82 2.87 3.50 5.49 -8.23 5.35 3.52

Population 635 635 605 536 469 393 275 577 545 527

Municipality of Anchorage Trust FundAll Endowments & Foundations (<$250M)Plan Sponsor Peer Group Analysis



Plan Sponsor Scattergram - 7 Years Up/Down Markets - 7 Years

Plan Sponsor Peer Group Analysis - Multi Statistics (Beta vs. S&P 500)

ReturnStandardDeviation

Total Fund 7.92 6.86Target Allocation Index 7.39 6.70Median 7.24 6.68

3.88

4.86

5.84

6.82

7.80

8.78

StandardDeviation

7Years

7Years

7Years

7Years

7Years

Total Fund 6.86 (41) 1.07 (30) 7.33 (25) 4.22 (48) 0.60 (44)Target Allocation Index 6.70 (48) 1.02 (51) 6.82 (47) 4.11 (55) 0.58 (55)

Median 6.68 1.02 6.68 4.18 0.59

Population 178 178 178 178 178

Municipality of Anchorage Trust FundTotal Fund vs. All Public Plans (<$250M)






Total Fund 10.61 8.28Target Allocation Index 9.88 8.09Median 9.64 8.05

4.00

6.00

8.00

10.00

12.00

StandardDeviation

10Years

10Years

10Years

10Years

10Years

Total Fund 8.28 (38) 1.21 (26) 10.04 (23) 4.57 (50) 0.63 (36)Target Allocation Index 8.09 (47) 1.15 (49) 9.35 (44) 4.47 (56) 0.61 (44)

Median 8.05 1.15 9.16 4.53 0.60

Population 145 145 145 145 145

Municipality of Anchorage Trust FundTotal Fund vs. All Public Plans (<$250M)






Domestic Equity 15.86 13.37Russell 3000 Index 16.00 13.11Median 15.80 13.21

1.01

1.08

1.15

1.22

1.29

SharpeRatio

12.00

14.00

16.00

18.00

20.00

ExcessReturn

6.75

7.10

7.45

7.80

8.15

8.50

DownsideRisk

0.86

0.92

0.98

1.04

1.10

1.16Beta

10Years

10Years

10Years

10Years

10Years

Domestic Equity 13.37 (39) 1.14 (56) 15.27 (49) 7.75 (33) 1.05 (32)Russell 3000 Index 13.11 (65) 1.17 (39) 15.36 (45) 7.54 (49) 1.03 (50)

Median 13.21 1.15 15.22 7.52 1.03

Population 40 40 40 40 40

Municipality of Anchorage Trust FundDomestic Equity vs. All Public Plans-US Equity Segment



Top Ten Equity Holdings

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Microsoft Corp 3.28 3.15 0.13 5.28Apple Inc 3.09 3.18 -0.09 9.70Amazon.com Inc 2.66 2.58 0.08 8.59Facebook Inc 1.44 1.40 0.04 3.25Berkshire Hathaway Inc 1.41 1.37 0.04 -0.20Johnson & Johnson 1.35 1.32 0.03 2.31Alphabet Inc 1.31 1.26 0.05 4.77Alphabet Inc 1.28 1.24 0.04 4.47Exxon Mobil Corp 1.24 1.21 0.03 2.24JPMorgan Chase & Co 1.20 1.18 0.02 -3.00

% of Portfolio 18.26 17.89 0.37

Portfolio Characteristics

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 195,542 191,476Median Mkt. Cap ($M) 5,618 1,646Price/Earnings Ratio 19.88 19.83Price/Book Ratio 3.31 3.295 Yr. EPS Growth Rate (%) 14.76 14.98Current Yield (%) 1.94 1.92Beta (5 Years, Monthly) 1.02 1.00Number of Securities 1,213 2,977

Distribution of Market Capitalization (%)

Municipality of Anchorage Trust FundDomestic Equity vs. Russell 3000 IndexPortfolio Characteristics


Alphabet Inc. is shown twice in the Top Ten Equity Holdings to represent the Class A and Class C shares.




International Equity 9.07 15.30MSCI ACW Ex US Index (USD) (Net) 8.85 15.69Median 10.07 15.43

0.55

0.60

0.65

0.70

0.75

0.80

SharpeRatio

8.90

9.56

10.22

10.88

11.54

12.20

ExcessReturn

8.42

8.81

9.20

9.59

9.98

10.37

DownsideRisk

10Years

10Years

10Years

10Years

10Years

International Equity 15.30 (66) 0.62 (96) 9.45 (96) 9.37 (29) 1.05 (53)MSCI ACW Ex US Index (USD) (Net) 15.69 (24) 0.59 (100) 9.30 (98) 9.51 (17) 1.07 (34)

Median 15.43 0.67 10.41 9.16 1.06


Municipality of Anchorage Trust FundInternational Equity vs. All Public Plans-Intl. Equity Segment



Top Ten Equity Holdings

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

BP PLC 1.92 0.72 1.20 2.39AIA Group Ltd 1.63 0.59 1.04 -0.45NOVARTIS AG 1.62 0.00 1.62 8.73Taiwan Semiconductor Mfg 1.55 0.97 0.58 2.66Airbus SE 1.54 0.38 1.16 2.29Alibaba Group Holding Ltd 1.40 1.17 0.23 -0.32Reliance Industries Ltd 1.40 0.28 1.12 13.21Roche Holding AG 1.36 0.95 0.41 2.26H D F C Bank Ltd 1.36 0.00 1.36 14.10Standard Chartered PLC 1.34 0.11 1.23 -4.75

% of Portfolio 15.12 5.17 9.95


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 70,850 66,550Median Mkt. Cap ($M) 19,810 7,841Price/Earnings Ratio 14.86 13.72Price/Book Ratio 2.28 2.205 Yr. EPS Growth Rate (%) 10.45 10.02Current Yield (%) 2.48 3.37Beta (5 Years, Monthly) 0.94 1.00Number of Securities 367 2,148

Distribution of Market Capitalization (%)

Municipality of Anchorage Trust FundInternational Equity vs. MSCI ACW Ex US Index (USD) (Net)Portfolio Characteristics





Domestic Fixed Income 6.12 3.15Bloomberg US Agg Bond Index 3.77 2.83Median 5.26 3.32

10Years

10Years

10Years

10Years

10Years

Domestic Fixed Income 3.15 (56) 1.76 (12) 5.58 (23) 1.32 (83) 0.07 (27)Bloomberg US Agg Bond Index 2.83 (91) 1.17 (63) 3.31 (87) 1.56 (70) -0.03 (85)

Median 3.32 1.34 4.76 1.66 0.03


Municipality of Anchorage Trust FundDomestic Fixed Income vs. All Public Plans-US Fixed Income Segment




Portfolio Benchmark

Effective Duration 4.24 5.82Convexity 0.51 0.13Yield To Maturity (%) 3.90 2.94Yield To Worst (%) 3.82 2.93Avg. Maturity 8.05 8.07Avg. Quality A3 Aa1/Aa2

Sector Distribution (%)

Municipality of Anchorage Trust FundDomestic Fixed Income vs. Bloomberg US Agg Bond IndexPortfolio Characteristics


Allocation to "Other" consists of ETF holdings and derivatives.

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

Total Fund 8.43 8.43 3.48 8.41 5.95 7.58 10.31 -4.49 16.32 5.67 10/01/1999

Target Allocation Index 8.61 8.61 3.83 8.19 6.14 7.39 9.88 -4.92 15.80 5.37Difference -0.18 -0.18 -0.35 0.22 -0.19 0.19 0.43 0.43 0.52 0.30

Consumer Price Index+4.25% 2.24 2.24 6.19 6.54 5.78 5.79 6.12 6.24 6.45 6.49Difference 6.19 6.19 -2.71 1.87 0.17 1.79 4.19 -10.73 9.87 -0.82

Domestic Equity 14.11 14.11 8.90 13.28 9.96 12.28 15.67 -4.88 22.05 6.30 10/01/1999

Russell 3000 Index 14.04 14.04 8.77 13.49 10.36 12.63 16.00 -5.24 21.13 6.62Difference 0.07 0.07 0.13 -0.21 -0.40 -0.35 -0.33 0.36 0.92 -0.32

Domestic Large Cap Equity 13.72 13.72 9.53 13.43 10.48 12.74 15.72 -4.42 23.32 6.25 10/01/1999

Russell 1000 Index 14.00 14.00 9.30 13.52 10.63 12.79 16.05 -4.78 21.69 6.50Difference -0.28 -0.28 0.23 -0.09 -0.15 -0.05 -0.33 0.36 1.63 -0.25

Vanguard Instl Indx;Inst (VINIX) 13.65 13.65 9.47 13.48 10.88 12.82 15.91 -4.42 21.79 6.19 10/01/1999

S&P 500 Index (Cap Wtd) 13.65 13.65 9.50 13.51 10.91 12.85 15.92 -4.38 21.83 6.18Difference 0.00 0.00 -0.03 -0.03 -0.03 -0.03 -0.01 -0.04 -0.04 0.01

IM U.S. Large Cap Core Equity (MF) Median 13.12 13.12 7.74 12.37 9.37 11.58 14.58 -5.60 21.17 5.84Rank 31 31 22 23 13 12 14 31 39 40

Domestic Mid Cap Equity 16.82 16.82 6.03 11.65 8.88 11.81 16.68 -9.23 19.24 8.65 07/01/2006

Vanguard Spl Mid Cap Index 16.79 16.79 5.99 11.63 8.89 11.83 16.72 -9.22 19.30 8.68Difference 0.03 0.03 0.04 0.02 -0.01 -0.02 -0.04 -0.01 -0.06 -0.03

Vanguard Md-Cp I;Adm (VIMAX) 16.77 16.77 5.98 11.59 8.85 11.78 16.67 -9.23 19.25 8.64 07/01/2006

Vanguard Spl Mid Cap Index 16.79 16.79 5.99 11.63 8.89 11.83 16.72 -9.22 19.30 8.68Difference -0.02 -0.02 -0.01 -0.04 -0.04 -0.05 -0.05 -0.01 -0.05 -0.04

IM U.S. Mid Cap Core Equity (MF) Median 14.58 14.58 2.76 9.32 6.19 9.77 14.21 -11.57 15.28 7.19Rank 8 8 16 23 13 13 6 23 19 11

Domestic Small Cap Equity 16.05 16.05 4.88 11.95 4.48 6.95 13.89 -8.83 10.79 5.37 01/01/2000

Small Cap Custom Index 14.58 14.58 2.05 11.46 6.46 10.35 15.47 -11.01 14.65 7.69Difference 1.47 1.47 2.83 0.49 -1.98 -3.40 -1.58 2.18 -3.86 -2.32

BlackRock:Adv SC Cr;Inst (BDSIX) 16.05 16.05 4.88 - - - - -8.83 10.79 8.51 12/01/2016

Russell 2000 Index 14.58 14.58 2.05 12.92 7.05 10.74 15.36 -11.01 14.65 8.19Difference 1.47 1.47 2.83 - - - - 2.18 -3.86 0.32

IM U.S. Small Cap Core Equity (MF) Median 11.60 11.60 -0.66 10.15 5.98 10.00 15.24 -12.30 10.99 5.09Rank 4 4 7 - - - - 14 52 12



Performance shown is net of fees. Performance is annualized for periods greater than one year. Please see the Addendum for custom index definitions.



QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

International Equity 9.94 9.94 -6.01 7.29 2.21 5.46 8.83 -14.87 26.99 5.41 10/01/1999

MSCI ACW Ex US Index (USD) (Net) 10.31 10.31 -4.22 8.09 2.57 4.72 8.85 -14.20 27.19 -Difference -0.37 -0.37 -1.79 -0.80 -0.36 0.74 -0.02 -0.67 -0.20 -

TIF:Internatl Equity;Prm (TFEQX) 6.64 6.64 -7.45 5.27 0.20 4.09 7.88 -14.87 22.92 2.09 07/01/2008

MSCI ACW Ex US Val Index (USD) (Net) 8.33 8.33 -5.39 7.73 1.08 3.72 8.19 -13.97 22.66 1.73Difference -1.69 -1.69 -2.06 -2.46 -0.88 0.37 -0.31 -0.90 0.26 0.36

IM ACWI Ex US Value (MF) Median 9.09 9.09 -8.16 5.11 -0.39 3.75 7.69 -16.03 22.88 1.36Rank 95 95 36 47 43 34 40 11 47 32

American Funds EuPc;F3 (FEUPX) 13.21 13.21 -4.65 9.26 4.19 6.79 9.80 -14.91 31.03 6.03 10/01/1999

MSCI ACW Ex US Grth Index (USD) (Net) 12.31 12.31 -3.05 8.42 4.01 5.68 9.47 -14.43 32.01 -Difference 0.90 0.90 -1.60 0.84 0.18 1.11 0.33 -0.48 -0.98 -

IM ACWI Ex US Growth (MF) Median 13.19 13.19 -4.66 8.89 3.91 6.20 9.86 -14.32 32.37 4.80Rank 49 49 50 43 44 33 54 57 66 11

Domestic Fixed Income 3.35 3.35 4.01 3.94 3.38 3.28 5.86 0.11 4.63 5.39 10/01/1999

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 4.86Difference 0.41 0.41 -0.47 1.91 0.64 0.80 2.09 0.10 1.09 0.53

FIAM Core Plus LLC (CF) 4.14 4.14 4.70 3.81 3.59 3.50 6.09 -0.54 4.80 5.08 10/01/2007

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 4.00Difference 1.20 1.20 0.22 1.78 0.85 1.02 2.32 -0.55 1.26 1.08

IM U.S. Broad Market Core+ Fixed Income (MF) Median 3.54 3.54 3.99 2.82 2.73 2.98 5.29 -0.94 4.49 4.49Rank 19 19 18 14 10 24 21 35 38 18

Garcia Hamilton Core Agg (SA) 2.48 2.48 3.83 - - - - - - 3.43 02/01/2018

Bloomberg US Agg Bond Index 2.94 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 3.55Difference -0.46 -0.46 -0.65 - - - - - - -0.12

IM U.S. Broad Market Core Fixed Income (MF) Median 3.23 3.23 4.09 2.13 2.49 2.45 4.50 -0.63 3.58 3.08Rank 91 91 65 - - - - - - 23




QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017

SinceIncep.

InceptionDate

Bank Loans 3.68 3.68 2.56 5.42 - - - -0.08 3.15 5.06 01/01/2016

S&P/LSTA Performing Loans Index 3.98 3.98 3.02 5.80 3.95 4.58 8.14 0.60 4.32 5.88Difference -0.30 -0.30 -0.46 -0.38 - - - -0.68 -1.17 -0.82

Western Asset Floating Rate High Income (CF) 3.68 3.68 2.56 5.42 2.56 - - -0.08 3.15 2.56 04/01/2014

S&P/LSTA Performing Loans Index 3.98 3.98 3.02 5.80 3.95 4.58 8.14 0.60 4.32 3.95Difference -0.30 -0.30 -0.46 -0.38 -1.39 - - -0.68 -1.17 -1.39

IM U.S. Bank Loans (MF) Median 3.78 3.78 2.23 4.80 2.89 3.55 6.49 -0.29 3.59 2.89Rank 59 59 31 27 67 - - 39 72 67

Emerging Markets Debt Composite 6.11 6.11 - - - - - - - 7.22 07/01/2018

EMD Blended Index 4.72 4.72 - - - - - - - 5.73Difference 1.39 1.39 - - - - - - - 1.49

Ashmore:EMs Tot Rtn;Inst (EMKIX) 5.49 5.49 - - - - - - - 6.69 07/01/2018

Ashmore EMD Custom Index 4.51 4.51 1.39 4.85 3.66 3.66 6.54 -2.54 9.89 5.81Difference 0.98 0.98 - - - - - - - 0.88


RBC BlueBay EM Debt;I (RBESX) 6.72 6.72 - - - - - - - 7.74 07/01/2018

BlueBay EMD Custom Index 4.93 4.93 -1.78 4.59 2.37 2.44 6.50 -5.15 12.74 5.64Difference 1.79 1.79 - - - - - - - 2.10


Real Estate 0.48 0.48 4.81 5.28 7.47 7.86 6.91 6.04 5.21 4.32 10/01/2007


UBS Trumbull Property (CF) 0.48 0.48 4.81 5.31 7.49 7.87 6.92 6.04 5.21 4.33 10/01/2007


Consumer Price Index+5% 2.42 2.42 6.96 7.31 6.55 6.55 6.89 7.01 7.21 6.83Difference -1.94 -1.94 -2.15 -2.00 0.94 1.32 0.03 -0.97 -2.00 -2.50


Peer Group Scattergram - 10 Years Up/Down Markets - 10 Years

Peer Group Analysis - Multi Statistics - 10 Years (Excess Return vs. Risk Free)

Sector Weights (%)

Performance

Portfolio Characteristics and Dist. of Market Cap (%)

QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 13.65 9.47 13.48 10.88 12.82 15.90 -4.42 21.79 11.93 1.37 13.65

Benchmark 13.65 9.50 13.51 10.91 12.85 15.92 -4.38 21.83 11.96 1.38 13.69Difference 0.00 -0.03 -0.03 -0.03 -0.03 -0.02 -0.04 -0.04 -0.03 -0.01 -0.04

Peer Group Median 13.12 7.74 12.37 9.37 11.58 14.58 -5.60 21.17 10.06 0.14 11.36Rank 31 22 23 13 12 14 31 39 26 32 16

Population 773 728 633 561 520 435 726 688 650 603 761


Manager 15.90 12.64Benchmark 15.92 12.63Median 14.58 12.94

4.92

5.78

6.64

7.50

8.36

9.22

DownsideRisk

Manager 15.22 (15) 0.02 (100) -0.58 (61) 1.20 (14) 7.20 (74)Benchmark 15.23 (15) 0.00 (100) N/A 1.20 (14) 7.19 (74)

Median 14.09 2.57 -0.46 1.09 7.53

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 227,832 230,718Median Mkt. Cap ($M) 21,244 21,550Price/Earnings Ratio 20.00 20.13Price/Book Ratio 3.45 3.435 Yr. EPS Growth Rate (%) 15.00 15.08Current Yield (%) 2.01 1.99Beta (5 Years, Monthly) 1.00 1.00Number of Securities 504 505Active Share 3.67 N/A

Vanguard Instl Indx;Inst (VINIX)

IM U.S. Large Cap Core Equity (MF)


Peer Group:Benchmark: S&P 500 Index (Cap Wtd)Manager:

Performance shown is net of fees and product specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Vanguard Instl Indx;Inst (VINIX) 13.65 (31) 13.65 (31) 9.47 (22) 13.48 (23) 10.88 (13) 12.82 (12) 15.90 (14) -4.42 (31) 21.79 (39) 11.93 (26)S&P 500 Index (Cap Wtd) 13.65 (32) 13.65 (32) 9.50 (21) 13.51 (22) 10.91 (12) 12.85 (12) 15.92 (14) -4.38 (31) 21.83 (38) 11.96 (26)


Population 773 773 728 633 561 520 435 726 688 650

Municipality of Anchorage Trust FundIM U.S. Large Cap Core Equity (MF)Peer Group Analysis





Sector Weights (%)

Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 16.77 5.98 11.59 8.85 11.78 16.67 -9.23 19.25 11.22 -1.34 13.76

Benchmark 16.79 5.99 11.63 8.89 11.83 16.72 -9.22 19.30 11.25 -1.28 13.83Difference -0.02 -0.01 -0.04 -0.04 -0.05 -0.05 -0.01 -0.05 -0.03 -0.06 -0.07

Peer Group Median 14.58 2.76 9.32 6.19 9.77 14.21 -11.57 15.28 14.37 -3.48 8.98Rank 8 16 23 13 13 7 23 19 77 22 9

Population 358 352 299 248 208 164 347 347 307 278 324



6.82

7.80

8.78

9.76

10.74

11.72

DownsideRisk


Median 14.09 3.88 -0.60 0.92 8.80

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 16,250 16,243Median Mkt. Cap ($M) 12,376 12,442Price/Earnings Ratio 21.26 21.27Price/Book Ratio 2.93 2.935 Yr. EPS Growth Rate (%) 11.70 11.70Current Yield (%) 1.62 1.61Beta (5 Years, Monthly) 1.00 1.00Number of Securities 363 356Active Share 0.28 N/A

Vanguard Md-Cp I;Adm (VIMAX)

IM U.S. Mid Cap Core Equity (MF)


Peer Group:Benchmark: Vanguard Spl Mid Cap IndexManager:

Performance shown is net of fees and product specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks. Benchmark consists of S&P Mid Cap 400 Index (Cap Wtd) through 05/16/2003; MSCI US Mid Cap 450 Index through 01/30/2013; and CRSP US Mid Cap Index thereafter.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Vanguard Md-Cp I;Adm (VIMAX) 16.77 (8) 16.77 (8) 5.98 (16) 11.59 (23) 8.85 (13) 11.78 (13) 16.67 (7) -9.23 (23) 19.25 (19) 11.22 (77)Vanguard Spl Mid Cap Index 16.79 (6) 16.79 (6) 5.99 (15) 11.63 (22) 8.89 (12) 11.83 (10) 16.72 (4) -9.22 (23) 19.30 (18) 11.25 (75)

5th Percentile 16.84 16.84 8.50 14.56 9.65 12.29 16.67 -4.09 23.95 21.611st Quartile 15.86 15.86 4.72 11.33 7.58 10.98 15.18 -9.60 18.49 17.56Median 14.58 14.58 2.76 9.32 6.19 9.77 14.21 -11.57 15.28 14.373rd Quartile 13.55 13.55 0.22 7.63 4.89 8.70 13.06 -14.09 13.02 11.2395th Percentile 10.82 10.82 -3.96 4.32 2.08 5.71 10.90 -18.05 9.89 4.44

Population 358 358 352 299 248 208 164 347 347 307

Municipality of Anchorage Trust FundIM U.S. Mid Cap Core Equity (MF)Peer Group Analysis





Sector Weights (%)

Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 16.05 4.88 13.57 7.86 N/A N/A -8.83 10.79 23.99 -2.25 5.48

Benchmark 14.58 2.05 12.92 7.05 10.74 15.36 -11.01 14.65 21.31 -4.41 4.89Difference 1.47 2.83 0.65 0.81 N/A N/A 2.18 -3.86 2.68 2.16 0.59

Peer Group Median 11.60 -0.66 10.15 5.98 10.00 15.24 -12.30 10.99 22.11 -4.96 4.07Rank 4 7 12 20 N/A N/A 14 52 44 22 30

Population 170 164 149 120 108 83 176 216 201 178 305



Manager 8.05 (22) 3.24 (70) 0.20 (19) 0.52 (16) 10.09 (68)Benchmark 7.39 (38) 0.00 (100) N/A 0.46 (37) 10.82 (25)

Median 6.29 4.31 -0.21 0.40 10.33

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 2,509 2,385Median Mkt. Cap ($M) 1,272 799Price/Earnings Ratio 17.22 17.81Price/Book Ratio 2.45 2.395 Yr. EPS Growth Rate (%) 14.61 11.78Current Yield (%) 1.48 1.44Beta (5 Years, Monthly) 0.95 1.00Number of Securities 608 1,999Active Share 67.55 N/A

BlackRock:Adv SC Cr;Inst (BDSIX)

IM U.S. Small Cap Core Equity (MF)


Peer Group:Benchmark: Russell 2000 IndexManager:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

BlackRock:Adv SC Cr;Inst (BDSIX) 16.05 (4) 16.05 (4) 4.88 (7) 13.57 (12) 7.86 (20) N/A N/A -8.83 (14) 10.79 (52) 23.99 (44)Russell 2000 Index 14.58 (14) 14.58 (14) 2.05 (15) 12.92 (13) 7.05 (39) 10.74 (38) 15.36 (49) -11.01 (43) 14.65 (18) 21.31 (56)

5th Percentile 15.57 15.57 6.40 14.99 8.39 12.20 18.26 -6.37 18.78 30.711st Quartile 13.22 13.22 1.36 11.87 7.64 11.26 16.33 -9.66 13.59 25.99Median 11.60 11.60 -0.66 10.15 5.98 10.00 15.24 -12.30 10.99 22.113rd Quartile 10.86 10.86 -3.71 8.29 4.27 8.79 13.61 -15.26 8.45 18.5295th Percentile 9.12 9.12 -10.93 5.68 1.90 4.76 9.99 -21.27 2.87 14.78

Population 170 170 164 149 120 108 83 176 216 201

Municipality of Anchorage Trust FundIM U.S. Small Cap Core Equity (MF)Peer Group Analysis





Region Weights (%)

Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 6.64 -7.45 5.27 0.20 4.09 7.88 -14.87 22.92 1.30 -2.67 -6.78

Benchmark 8.33 -5.39 7.73 1.08 3.72 8.19 -13.97 22.66 8.92 -10.06 -5.10Difference -1.69 -2.06 -2.46 -0.88 0.37 -0.31 -0.90 0.26 -7.62 7.39 -1.68

Peer Group Median 9.09 -8.16 5.11 -0.39 3.75 7.69 -16.03 22.88 2.79 -7.13 -6.27Rank 95 36 47 43 34 40 11 47 81 16 56

Population 68 68 63 55 49 39 68 72 66 58 59




Median 8.17 4.23 -0.14 0.51 9.91

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 62,826 54,677Median Mkt. Cap ($M) 24,846 7,173Price/Earnings Ratio 13.55 10.71Price/Book Ratio 1.74 1.595 Yr. EPS Growth Rate (%) 5.21 6.77Current Yield (%) 3.13 4.67Beta (5 Years, Monthly) 0.90 1.00Number of Securities 72 1,282Active Share 87.77 N/A

TIF:Internatl Equity;Prm (TFEQX)

IM ACWI Ex US Value (MF)


Peer Group:Benchmark: MSCI ACW Ex US Val Index (USD) (Net)Manager:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

TIF:Internatl Equity;Prm (TFEQX) 6.64 (95) 6.64 (95) -7.45 (36) 5.27 (47) 0.20 (43) 4.09 (34) 7.88 (40) -14.87 (11) 22.92 (47) 1.30 (81)MSCI ACW Ex US Val Index (USD) (Net) 8.33 (57) 8.33 (57) -5.39 (12) 7.73 (9) 1.08 (30) 3.72 (51) 8.19 (32) -13.97 (5) 22.66 (54) 8.92 (19)

5th Percentile 12.20 12.20 -4.62 8.34 2.17 5.86 10.45 -14.33 30.41 12.791st Quartile 10.13 10.13 -6.92 6.34 1.36 4.57 8.50 -15.38 25.75 8.07Median 9.09 9.09 -8.16 5.11 -0.39 3.75 7.69 -16.03 22.88 2.793rd Quartile 7.33 7.33 -9.21 3.59 -2.17 1.25 6.77 -17.89 18.52 1.7595th Percentile 6.62 6.62 -14.54 2.15 -4.15 -1.56 2.99 -22.95 15.26 -6.49

Population 68 68 68 63 55 49 39 68 72 66

Municipality of Anchorage Trust FundIM ACWI Ex US Value (MF)Peer Group Analysis





Region Weights (%)

Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 13.21 -4.65 9.22 4.06 6.62 9.65 -14.91 31.13 0.66 -0.82 -2.64

Benchmark 12.31 -3.05 8.42 4.01 5.68 9.47 -14.43 32.01 0.12 -1.25 -2.65Difference 0.90 -1.60 0.80 0.05 0.94 0.18 -0.48 -0.88 0.54 0.43 0.01

Peer Group Median 13.19 -4.66 8.89 3.91 6.20 9.86 -14.32 32.37 -0.80 0.27 -3.22Rank 49 50 43 49 40 57 57 64 31 72 38

Population 174 174 164 130 113 100 176 188 165 143 146




Median 10.17 3.68 0.10 0.67 9.21

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 78,667 78,012Median Mkt. Cap ($M) 19,300 8,394Price/Earnings Ratio 16.21 18.75Price/Book Ratio 2.84 2.935 Yr. EPS Growth Rate (%) 14.92 13.18Current Yield (%) 1.84 2.13Beta (5 Years, Monthly) 0.94 1.00Number of Securities 320 1,143Active Share 71.47 N/A

American Funds EuPc;F3 (FEUPX)

IM ACWI Ex US Growth (MF)


Peer Group:Benchmark: MSCI ACW Ex US Grth Index (USD) (Net)Manager:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

American Funds EuPc;F3 (FEUPX) 13.21 (49) 13.21 (49) -4.65 (50) 9.22 (43) 4.06 (49) 6.62 (40) 9.65 (57) -14.91 (57) 31.13 (64) 0.66 (31)MSCI ACW Ex US Grth Index (USD) (Net) 12.31 (71) 12.31 (71) -3.05 (39) 8.42 (61) 4.01 (50) 5.68 (63) 9.47 (63) -14.43 (52) 32.01 (54) 0.12 (38)

5th Percentile 17.41 17.41 3.41 16.55 9.98 10.24 12.43 -6.96 44.55 2.641st Quartile 14.41 14.41 -0.24 10.24 5.45 7.15 10.97 -12.37 35.32 0.92Median 13.19 13.19 -4.66 8.89 3.91 6.20 9.86 -14.32 32.37 -0.803rd Quartile 11.79 11.79 -5.81 7.15 3.01 5.25 8.66 -16.97 30.12 -4.7495th Percentile 10.55 10.55 -10.85 3.00 0.85 3.40 7.06 -20.59 25.75 -7.07

Population 174 174 174 164 130 113 100 176 188 165

Municipality of Anchorage Trust FundIM ACWI Ex US Growth (MF)Peer Group Analysis






Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 4.21 5.02 4.07 3.76 3.61 6.19 -0.23 5.00 6.46 0.09 5.67

Benchmark 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 2.65 0.55 5.97Difference 1.27 0.54 2.04 1.02 1.13 2.42 -0.24 1.46 3.81 -0.46 -0.30

Peer Group Median 3.62 4.68 3.28 3.33 3.52 6.01 -0.42 4.79 4.67 0.31 6.20Rank 22 24 23 24 43 41 46 43 23 60 70

Population 130 129 126 124 122 111 150 161 165 171 179




Median 5.46 1.82 1.07 1.59 1.50

Portfolio Benchmark

Effective Duration 4.99 5.82Spread Duration 5.54 6.00Avg. Maturity 9.46 8.07Avg. Quality A2 Aa1/Aa2Yield To Maturity (%) 4.05 2.94Coupon Rate (%) 4.03 3.23Current Yield (%) 4.17 N/AHoldings Count 1,554 10,374

FIAM Core Plus LLC (CF)

IM U.S. Broad Market Core+ Fixed Income (SA+CF)


Peer Group:Benchmark: Bloomberg US Agg Bond IndexManager:

Performance shown is gross of fees and product specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks. Allocation to "Other" consists of derivatives.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

FIAM Core Plus LLC (CF) 4.21 (22) 4.21 (22) 5.02 (24) 4.07 (23) 3.76 (24) 3.61 (43) 6.19 (41) -0.23 (46) 5.00 (43) 6.46 (23)Bloomberg US Agg Bond Index 2.94 (90) 2.94 (90) 4.48 (66) 2.03 (100) 2.74 (93) 2.48 (96) 3.77 (98) 0.01 (34) 3.54 (94) 2.65 (96)

5th Percentile 5.45 5.45 5.36 5.73 4.33 5.10 8.99 1.10 7.84 10.381st Quartile 4.16 4.16 5.01 4.04 3.75 4.08 6.77 0.10 5.49 6.13Median 3.62 3.62 4.68 3.28 3.33 3.52 6.01 -0.42 4.79 4.673rd Quartile 3.27 3.27 4.28 2.82 3.04 3.22 5.12 -0.93 4.15 3.6595th Percentile 2.80 2.80 3.49 2.32 2.56 2.49 4.20 -2.56 3.38 2.76

Population 130 130 129 126 124 122 111 150 161 165

Municipality of Anchorage Trust FundIM U.S. Broad Market Core+ Fixed Income (SA+CF)Peer Group Analysis


Performance shown is gross of fees and product specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.

Peer Group Scattergram - 1 Year Up/Down Markets - 1 Year

Peer Group Analysis - Multi Statistics - 1 Year (Excess Return vs. Risk Free)


Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 2.55 4.07 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Benchmark 2.94 4.48 2.03 2.74 2.48 3.77 0.01 3.54 2.65 0.55 5.97Difference -0.39 -0.41 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Peer Group Median 3.22 4.71 2.53 3.10 2.94 4.66 0.07 4.06 3.11 0.82 6.16Rank 95 95 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Population 122 121 119 116 111 107 145 153 162 167 181




Median 2.55 0.46 0.47 0.89 1.18

Portfolio Benchmark

Effective Duration 4.66 5.82Spread Duration 0.62 6.00Avg. Maturity 8.20 8.07Avg. Quality A+ Aa1/Aa2Yield To Maturity (%) 3.00 2.94Coupon Rate (%) 3.15 3.23Current Yield (%) 3.00 N/AHoldings Count 27 10,374

Garcia Hamilton Core Agg (SA)

IM U.S. Broad Market Core Fixed Income (SA+CF)


Peer Group:Benchmark: Bloomberg US Agg Bond IndexManager:

Performance shown is gross of fees and client specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.

Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Garcia Hamilton Core Agg (SA) 2.55 (95) 2.55 (95) 4.07 (95) N/A N/A N/A N/A N/A N/A N/ABloomberg US Agg Bond Index 2.94 (82) 2.94 (82) 4.48 (79) 2.03 (88) 2.74 (89) 2.48 (94) 3.77 (95) 0.01 (62) 3.54 (85) 2.65 (77)

5th Percentile 3.92 3.92 5.36 3.72 3.84 3.87 6.24 1.24 5.29 5.621st Quartile 3.42 3.42 4.96 2.85 3.34 3.22 5.21 0.39 4.52 3.83Median 3.22 3.22 4.71 2.53 3.10 2.94 4.66 0.07 4.06 3.113rd Quartile 2.98 2.98 4.51 2.20 2.86 2.64 4.22 -0.11 3.64 2.6595th Percentile 2.44 2.44 4.05 1.87 2.60 2.47 3.76 -0.68 3.06 2.23

Population 122 122 121 119 116 111 107 145 153 162

Municipality of Anchorage Trust FundIM U.S. Broad Market Core Fixed Income (SA+CF)Peer Group Analysis


Performance shown is gross of fees and client specific. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.



Quality Distribution (%)

Performance


QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 3.81 3.07 5.95 2.91 4.09 8.57 0.42 3.67 10.42 -3.11 1.28

Benchmark 3.98 3.02 5.80 3.95 4.58 8.14 0.60 4.32 10.36 0.10 1.82Difference -0.17 0.05 0.15 -1.04 -0.49 0.43 -0.18 -0.65 0.06 -3.21 -0.54

Peer Group Median 3.97 3.20 5.57 3.96 4.78 7.83 0.78 4.46 9.51 0.68 2.07Rank 71 67 26 100 93 21 72 92 23 99 86

Population 48 47 45 45 40 30 59 63 64 67 70




Median 7.22 1.54 -0.20 1.63 1.89

Portfolio Benchmark

Effective Duration -0.07 0.25Spread Duration 2.31 N/AAvg. Maturity 2.30 2.76Avg. Quality Ba3 B2Yield To Maturity (%) 6.70 6.77Coupon Rate (%) 6.32 5.91Current Yield (%) 6.19 N/AHoldings Count 258 1,359

Western Asset Floating Rate High Income (CF)

IM U.S. Bank Loans (SA+CF)


Peer Group:Benchmark: S&P/LSTA Performing Loans IndexManager:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Western Asset Flt Rate Hi Inc (CF) 3.81 (71) 3.81 (71) 3.07 (67) 5.95 (26) 2.91 (100) 4.09 (93) 8.57 (21) 0.42 (72) 3.67 (92) 10.42 (23)S&P/LSTA Performing Loans Index 3.98 (50) 3.98 (50) 3.02 (71) 5.80 (35) 3.95 (53) 4.58 (65) 8.14 (31) 0.60 (65) 4.32 (64) 10.36 (27)

5th Percentile 4.53 4.53 4.19 6.92 4.47 5.58 9.39 1.61 5.90 11.941st Quartile 4.17 4.17 3.56 5.95 4.17 5.06 8.50 1.21 4.76 10.40Median 3.97 3.97 3.20 5.57 3.96 4.78 7.83 0.78 4.46 9.513rd Quartile 3.79 3.79 2.92 5.18 3.70 4.30 7.20 0.30 4.06 8.5795th Percentile 3.21 3.21 2.58 4.74 3.18 4.04 6.58 -0.12 3.01 7.11

Population 48 48 47 45 45 40 30 59 63 64

Municipality of Anchorage Trust FundIM U.S. Bank Loans (SA+CF)Peer Group Analysis



Performance

Historical Statistics - 7 Years (Excess Return vs. Risk Free) Actual Correlation - 7 Years

Relative Performance - Since Inception

QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 5.40 -1.32 7.33 3.40 3.11 N/A -5.33 13.65 17.16 -5.52 -4.71

Benchmark 4.51 1.39 4.85 3.66 3.66 6.54 -2.54 9.89 8.72 -2.12 3.15Difference 0.89 -2.71 2.48 -0.26 -0.55 N/A -2.79 3.76 8.44 -3.40 -7.86

Peer Group Median 5.77 0.68 5.12 3.56 3.71 7.74 -5.91 10.49 10.42 -2.53 1.31Rank 63 72 7 55 62 N/A 42 10 3 81 88

Manager Benchmark S&P 500 Idx B US Agg B Idx

Standard Deviation 8.41 5.62 10.77 2.83Sharpe Ratio 0.34 0.57 1.13 0.69Downside Risk 5.53 3.63 6.57 1.69Excess Return 2.87 3.21 12.17 1.93

ActualCorrelation

Ashmore EMD Custom Index 0.94S&P 500 Index (Cap Wtd) 0.46Russell 2000 Index 0.28MSCI ACW Ex US Index (USD) (Net) 0.75MSCI Emg Mkts Index (USD) (Net) 0.83Bloomberg US Agg Bond Index 0.34Bloomberg US Trsy US TIPS Index 0.46Wilshire US REIT Index 0.36HFN FOF Multi-Strat Index (Net) 0.40Bloomberg Cmdty Index (TR) 0.49ICE BofAML 3 Mo US T-Bill Index 0.05Cons Price Index (Unadjusted) 0.19

Cumulative Annualized Over/Under Relative Performance

Over/Under Performance

0.00

3.00

6.00

-3.00

-6.00

-9.001/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 3/19

Ashmore:EMs Tot Rtn;Inst (EMKIX) As of March 31, 2019Benchmark: Ashmore EMD Custom IndexManager:

IM Emerging Markets Debt (MF)Peer Group:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

Ashmore:EMs Tot Rtn;Inst (EMKIX) 5.40 (63) 5.40 (63) -1.32 (72) 7.33 (7) 3.40 (55) 3.11 (62) N/A -5.33 (42) 13.65 (10) 17.16 (3)Ashmore EMD Custom Index 4.51 (91) 4.51 (91) 1.39 (41) 4.85 (59) 3.66 (48) 3.66 (51) 6.54 (75) -2.54 (8) 9.89 (60) 8.72 (78)

5th Percentile 8.00 8.00 4.17 7.48 5.10 5.01 9.64 -1.82 14.25 14.961st Quartile 6.83 6.83 2.51 6.26 4.37 4.27 8.31 -4.27 12.52 13.09Median 5.77 5.77 0.68 5.12 3.56 3.71 7.74 -5.91 10.49 10.423rd Quartile 5.02 5.02 -1.67 4.10 2.04 2.30 6.46 -7.08 9.02 8.8895th Percentile 3.93 3.93 -5.04 2.48 -1.59 -0.90 2.75 -8.99 6.67 5.57

Population 290 290 274 226 177 97 58 275 265 233

Municipality of Anchorage Trust FundIM Emerging Markets Debt (MF)Peer Group Analysis



Performance



QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 6.72 1.73 5.19 1.93 1.71 N/A -5.06 12.78 6.67 -7.73 -0.18

Benchmark 4.93 -1.78 4.59 2.37 2.44 6.50 -5.15 12.74 10.16 -7.14 0.71Difference 1.79 3.51 0.60 -0.44 -0.73 N/A 0.09 0.04 -3.49 -0.59 -0.89

Peer Group Median 5.77 0.68 5.12 3.56 3.71 7.74 -5.91 10.49 10.42 -2.53 1.31Rank 28 35 47 77 83 N/A 37 22 90 84 66

Manager Benchmark S&P 500 Idx B US Agg B Idx


ActualCorrelation

BlueBay EMD Custom Index 0.96S&P 500 Index (Cap Wtd) 0.41Russell 2000 Index 0.22MSCI ACW Ex US Index (USD) (Net) 0.70MSCI Emg Mkts Index (USD) (Net) 0.78Bloomberg US Agg Bond Index 0.49Bloomberg US Trsy US TIPS Index 0.61Wilshire US REIT Index 0.37HFN FOF Multi-Strat Index (Net) 0.36Bloomberg Cmdty Index (TR) 0.41ICE BofAML 3 Mo US T-Bill Index 0.12Cons Price Index (Unadjusted) 0.17

RBC BlueBay EM Debt;I (RBESX) As of March 31, 2019Benchmark: BlueBay EMD Custom IndexManager:

IM Emerging Markets Debt (MF)Peer Group:


Ret

urn

(%)

QTD CYTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016

RBC BlueBay EM Debt;I (RBESX) 6.72 (28) 6.72 (28) 1.73 (35) 5.19 (47) 1.93 (77) 1.71 (83) N/A -5.06 (37) 12.78 (22) 6.67 (90)BlueBay EMD Custom Index 4.93 (78) 4.93 (78) -1.78 (78) 4.59 (66) 2.37 (72) 2.44 (72) 6.50 (75) -5.15 (39) 12.74 (22) 10.16 (55)

5th Percentile 8.00 8.00 4.17 7.48 5.10 5.01 9.64 -1.82 14.25 14.961st Quartile 6.83 6.83 2.51 6.26 4.37 4.27 8.31 -4.27 12.52 13.09Median 5.77 5.77 0.68 5.12 3.56 3.71 7.74 -5.91 10.49 10.423rd Quartile 5.02 5.02 -1.67 4.10 2.04 2.30 6.46 -7.08 9.02 8.8895th Percentile 3.93 3.93 -5.04 2.48 -1.59 -0.90 2.75 -8.99 6.67 5.57

Population 290 290 274 226 177 97 58 275 265 233

Municipality of Anchorage Trust FundIM Emerging Markets Debt (MF)Peer Group Analysis



Performance



QTD1

Year3

Years5

Years7

Years10

Years2018 2017 2016 2015 2014

Manager 0.69 5.73 6.34 8.59 9.01 8.01 6.99 6.30 7.21 12.94 11.69

Benchmark 1.42 7.52 7.97 10.17 10.77 8.74 8.35 7.62 8.77 15.02 12.50Difference -0.73 -1.79 -1.63 -1.58 -1.76 -0.73 -1.36 -1.32 -1.56 -2.08 -0.81

Manager BenchmarkS&P 500 Index

(Cap Wtd)Bloomberg US

Agg Bond Index


ActualCorrelation

NCREIF ODCE Index (AWA) (Gross) 0.97S&P 500 Index (Cap Wtd) -0.42Russell 2000 Index -0.39MSCI EAFE Index (USD) (Net) -0.49MSCI Emg Mkts Index (USD) (Net) -0.57Bloomberg US Agg Bond Index -0.10Bloomberg US Trsy US TIPS Index -0.06Wilshire US REIT Index -0.59HFRI FOF Comp Index -0.38Bloomberg Cmdty Index (TR) -0.32ICE BofAML 3 Mo US T-Bill Index -0.15Cons Price Index (Unadjusted) -0.11

Ret

urn

(%)

UBS Trumbull Property (CF) As of March 31, 2019Benchmark: NCREIF ODCE Index (AWA) (Gross)Manager:

Performance shown is gross of fees and product specific. Calculation is based on quarterly periodicity. Investment profile data shown is provided by the investment manager and is as of the most recently available quarter end. Allocation data shown is based on NAV. Benchmark allocation to “Other” consists of entertainment (theaters, golf courses, bowling alleys), healthcare (hospitals, clinics), manufactured homes, parking lots, self-storage units, senior living, and undeveloped land.

Investment Strategy Investment Profile

Property Type Allocation (%)

Geographic Allocation (%)

The Fund pursues a diversified core real estate strategy that seeks toproduce attractive risk-adjusted returns by focusing on selective acquisitions,diversification, active portfolio management, and asset management. TheFund invests in well-leased, stabilized assets in major US metropolitanmarkets and receives the majority of its return from the income component.Diversification for the Fund is consistently pursued on many levels, includinggeographic region, property type, and economic sector. The Fund hashistorically maintained a leverage ratio significantly lower than the NCREIFODCE Index and invests 5-15% of its gross assets in value-added type realestate investment opportunities.

Fund Inception 1978Legal Structure LPFund Structure Open-EndGross Real Estate Assets ($M) 32,609Fund Leverage % 17.50Portfolio Occupancy % 93.30Cash Reserve % 5.60Number of Investments 202Number of Limited Partners 437

UBS Trumbull Property (CF) As of March 31, 2019Benchmark: NCREIF ODCE Index (AWA) (Gross)Manager:

Growth of $100


Vanguard Instl Indx;Inst (VINIX) 50/50 AB Value/SS Growth

99.00

103.00

107.00

111.00

115.00

119.00

123.00

127.00

5/17 8/17 11/17 2/18 5/18 8/18 11/18 2/19 3/19

Jun-2017To

Mar-2019

1Year

3Years

5Years

10Years

Vanguard Instl Indx;Inst (VINIX) 11.34 9.47 13.48 10.88 15.90


50/50 AB Value/SS Growth 9.77 6.41 12.21 9.66 15.17


Municipality of Anchorage Trust FundDomestic Large Cap Equity Transition



Growth of $100


BlackRock:Adv SC Cr;Inst (BDSIX) LKCM:Small Cap Eq;Inst (LKSCX) Russell 2000 Index

88.00

96.00

104.00

112.00

120.00

128.00

136.00

144.00

152.00

11/16 2/17 5/17 8/17 11/17 2/18 5/18 8/18 11/18 3/19

Dec-2016To

Mar-2019

1Year

3Years

5Years

10Years

BlackRock:Adv SC Cr;Inst (BDSIX) 8.50 4.88 13.57 7.86 N/A

Russell 2000 Index 8.19 2.05 12.92 7.05 15.36Difference 0.31 2.83 0.65 0.81 N/A

LKCM:Small Cap Eq;Inst (LKSCX) 11.06 6.87 13.13 5.14 14.27

Russell 2500 Grth Index 14.89 7.54 15.60 9.72 17.50Difference -3.83 -0.67 -2.47 -4.58 -3.23

Municipality of Anchorage Trust FundDomestic Small Cap Equity Transition



Fee Schedule

Market ValueAs of

03/31/2019($)

EstimatedAnnual Fee

($)

EstimatedAnnual Fee

(%)

Total Fund 160,134,825 621,896 0.39

Vanguard Instl Indx;Inst (VINIX) 0.04 % of Assets 47,199,201 16,520 0.04

Vanguard Md-Cp I;Adm (VIMAX) 0.05 % of Assets 4,140,790 2,070 0.05

BlackRock:Adv SC Cr;Inst (BDSIX) 0.50 % of Assets 4,048,967 20,245 0.50

TIF:Internatl Equity;Prm (TFEQX) 0.80 % of Assets 19,377,363 155,019 0.80

American Funds EuPc;F3 (FEUPX) 0.49 % of Assets 19,887,856 97,451 0.49

FIAM Core Plus LLC (CF) 0.25 % of First $50 M0.22 % of Next $50 M0.20 % of Next $100 M0.17 % Thereafter

19,177,639 47,944 0.25

Garcia Hamilton Core Agg (SA) 0.25 % of Assets 19,264,031 48,160 0.25

Western Asset Floating Rate High Income (CF) 0.45 % of First $100 M0.30 % Thereafter

5,204,351 23,420 0.45

Ashmore:EMs Tot Rtn;Inst (EMKIX) 1.02 % of Assets 4,415,065 45,034 1.02

RBC BlueBay EM Debt;I (RBESX) 0.88 % of Assets 4,483,786 39,457 0.88

UBS Trumbull Property (CF) 0.98 % of Assets 12,915,969 126,577 0.98

Municipality of Anchorage Trust FundFee Addendum


Mutual Fund fees are sourced from Morningstar and/or the investment manager.Please see the Addendum for the full UBS Trumbull Property (CF) fee schedule. Vanguard Instl Indx;Inst (VINIX) fee is .035%.

Performance Related CommentsPerformance shown is net of fees, unless otherwise noted.Inception dates shown reflect the first full month of client specific performance.RVK began monitoring the assets of the Municipality of Anchorage as of 01/01/2016. Prior historical data was provided by theprevious investment consultant.

Custom Index Comments

The Target Allocation Index is calculated monthly and consists of 35% Russell 3000 Index, 25% MSCI ACW Ex US Index (USD)(Net), 24% Bloomberg US Agg Bond Index, 3% S&P/LSTA Performing Loans Index, 5% EMD Blended Index and 8% NCREIF-ODCE Index (AWA) (Net) thereafter.The Vanguard Spl Mid Cap Index consists of the S&P MidCap 400 Index (Cap Wtd) through 5/16/2003; MSCI US Mid Cap 450Index through 1/30/2013; and CRSP US Mid Cap Index thereafter.The Small Cap Custom Index consists of the Russell 2000 Index through 06/2006, the Russell 2000 Growth Index through 11/2016,and the Russell 2000 Index thereafter.The EMD Blended Index is calculated monthly using beginning of month investment weights applied to each corresponding primarybenchmark return thereafter.The Ashmore Custom Index consists of 50% JPM EMBI Gbl Dvf'd TR Index (USD), 25% JPM GBI-EM Gbl Dvf'd TR Index (USD)(Unhedged), and 25% JPM ELM+ Index (LC).The BlueBay Custom Index consists of 50% JPM EMBI Gbl Dvf'd TR Index (USD) and 50% JPM GBI-EM Gbl Dvf'd TR Index (USD)(Unhedged).

Fee SchedulesUBS Trumbull Property (CF) - 0.955% on first $10M, 0.825% on next $15M, 0.805% on next $25M, 0.79% on next $50M,

0.67% on next $150M, and 0.60% thereafter. An incentive fee, up to 0.25%, is calculatedquarterly based on trailing 12-month performance.

*The fee schedule shown for UBS Trumbull Property (CF) is based on the effective rates as of the most recent quarter end for thecombined assets of Anchorage Police & Fire Retirement System and Municipality of Anchorage, and includes incentive fees.

Municipality of Anchorage Trust FundWriteup


Glossary

Active Return - The difference between the investment manager/composite performance relative to the performance of an appropriate market benchmark.

Active Share - Measures the degree to which the holdings of a fund differ from the holdings of the benchmark. Active share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the fund versus the weight of each holding in the benchmark and dividing by two.

Alpha - A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the portfolio's historical performance not explained by movements of the market or a portfolio's non-systematic return.

Alpha Ratio - A measure of a portfolio's non-systematic return per unit of downside risk. It is measured by dividing the alpha of a portfolio by the downside risk. The non-systematic return is a measure of a portfolio's historical performance not explained by movements of the market.

Average Quality - Bond quality ratings are reported using the investment managers' and the index providers' preferred rating agency. Average Quality for managers unable to provide this statistic is instead provided by Morningstar; if unavailable on Morningstar, it has been estimated using a credit quality distribution provided by the manager. There are two primary rating agencies in the US. Moody's assigns ratings on a system that employs up to four symbols (consisting of letters and numbers) such as, Aaa, Aa2, etc., with Aaa being the highest or safest rating. Standard & Poor's (S&P) employs a system that uses + and - along with letters such as AAA, AA+, etc. The two rating agencies' systems are summarized below:

S&P Moody’s Explanation S&P Moody’s Explanation

Higher Credit Quality – Investment Grade Lower Credit Quality – Below Investment GradeAAA Aaa Prime/Highest credit quality BB+ Ba1 Speculative/Low credit qualityAA+ Aa1 High credit quality BB Ba2AA Aa2 BB- Ba3AA- Aa3 B+ B1 Highly speculativeA+ A1 Upper-medium credit quality B B2A A2 B- B3A- A3 CCC+ Caa1 Substantial credit/default riskBBB+ Baa1 Lower-medium credit quality CCC Caa2 Extremely speculativeBBB Baa2 CCC- Caa3BBB- Baa3 CC Ca Vulnerable to default

C CaD C In default

Benchmark Effect - The difference between the blended return of each respective managers’ benchmark within a composite and the composite’s benchmark return.

Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematic risk.

Box Plots - A graphical representation of the distribution of observations. From top to bottom, the four boxes represent the spread between the maximum value and the minimum value in each quartile. A quartile represents the values that divide the observations into four quarters (i.e., 1st quartile, 2nd quartile, 3rd quartile, and 4th quartile). The median observation is where the 2nd quartile and 3rd quartile meet.

Buy and Hold Attribution - At the beginning of the time period under analysis, the manager and benchmark portfolios are broken down into segments (i.e., styles, sectors, countries, and regions) based on the desired type of attribution. The formula assumes zero turn-over to the manager and benchmark portfolios throughout the period and calculates the segment returns ("buy and hold returns") to arrive at performance attribution. Due to portfolio turnover, buy and hold attribution may not accurately represent quarterly performance relative to the benchmark. Country, region, sector, and style allocations are as of the date one quarter prior to the reporting date, and the returns shown are for those segments throughout the quarter reported. Due to disclosure guidelines set by each investment manager, equity characteristics shown are as of the most recent date available. The following is the methodology for segment classification:

Sector - Attribution is calculated using the Global Industry Classification Standard (GICS) which is a detailed and comprehensive structure for sector and industry analysis. Stocks are classified by their primary sector, as defined by S&P Capital IQ data.Country/Region - Attribution is calculated using the Morgan Stanley Capital International (MSCI) region standards. Stocks are classified by their domicile country/region, as defined by S&P Capital IQ data. Style - Stocks are classified into the following style boxes: large/mid/small vs. growth/neutral/value. Stocks are classified along large/mid/small categories at the time of the Russell index rebalancing, using the index market cap boundaries as cutoff points. Stocks are classified along growth/neutral/value categories at the time of the Russell index rebalancing, using the price/book ratio as supplied by S&P Capital IQ. Stocks in the Russell 3000 Index portfolio are sorted by price/book ratio; names with the highest price/book ratio that make up 1/3 of the total market capitalization are assigned to the growth category, names that make up the subsequent 1/3 of the total market capitalization are assigned to the neutral category, while the balance of the names are assigned to the value category.

Portfolio Characteristics and Buy and Hold Attribution reports utilize product-specific data for all mutual funds and commingled funds.

Capital Markets Review -Breakeven Inflation - Measures the expected inflation rate at each stated maturity by taking the difference between the real yield of the inflation-linked maturity curve and the yield of the closest nominal Treasury maturity.Consumer Confidence - Measures domestic consumer confidence as defined by the degree of optimism on the state of the economy that consumers express through saving and spending.Consumer Price Index (CPI) - Measures the change in the price level of consumer goods and services.Federal Funds Rate - The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. It is one of the most influential interest rates in the US economy, since it affects monetary and financial conditions, which in turn have a bearing on key aspects of the broad economy including employment, growth and inflation.Option-Adjusted Spread - Measures the flat spread of an index or bond to the Treasury yield curve after removing the effect of any embedded options.

Glossary

Purchasing Managers Index (PMI) - Measures economic activity by surveying purchasing managers on a monthly basis as to whether business conditions have improved, worsened, or stayed the same.Real Gross Domestic Product (Real GDP) - An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.US Dollar Total Weighted Index - Measures the value of the US Dollar relative to a basket of other world currencies. It is calculated as the weighted geometric mean of the dollar's value versus the EUR, GBP, CAD, SEK, CHF, and JPY.Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment.VIX - Measures the implied volatility of S&P 500 Index options by looking at the market's expectation of the S&P 500 Index volatility over the next 30 day period. Commonly referred to as the "fear index" or the "fear gauge."

Cash Flow Effect – The composite’s active return minus the sum of each managers’ active return minus the benchmark effect.

Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance.

Convexity - A measure of the shape of the curve that describes the relationship between bond prices and bond yields.

Correlation - A statistical measure of the relationship between asset class returns. A value of 1.00 is a perfect correlation; that is, the asset classes always move in the same direction. A value of -1.00 indicates a perfect negative correlation, in which the asset classes always move in opposite directions of each other. A value of 0 indicates there is no relationship between the direction of returns of the two asset classes. Correlation calculations only consider the direction of changes relative to two variables and not the magnitude of those changes.

Coupon Rate - The percentage rate of interest paid on a bond or fixed income security; it is typically paid twice per year.

Current Yield - The annual income of a security divided by the security's current price.

Down Market Capture - Down market by definition is negative benchmark return and down market capture represents the ratio in % terms of the average portfolios return over the benchmark during the down market period. The lower the value of the down market capture the better the product's performance.

Downside Risk - A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative monthly returns. The higher the factor, the riskier the product.

Earnings Per Share - It is backward looking, calculated using the one year current EPS divided by the one year EPS five years ago.

Effective Duration - The approximate percentage change in a bond's price for a 100 basis point change in yield.

Excess Return vs. Market - Average of the monthly arithmetic difference between the manager's return and the benchmark return over a specified time period, shown on an annualized basis.

Excess Return vs. Risk Free - Average of the monthly arithmetic difference between the manager's return and the risk-free return (i.e., ICE BofAML 3 Mo US T-Bill Index unless specified otherwise) over a specified time period, shown on an annualized basis.

Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return.

Expense Ratios - Morningstar is the source for mutual fund expense ratios.

Gain/Loss - The net increase or decrease in the market value of a portfolio excluding its Net Cash Flow for a given period.

Indices - All indices and related information are considered intellectual property and are licensed by each index provider. The indices may not be copied, used or distributed without the index provider's prior written approval. Index providers make no warranties and bear no liability with respect to the indices, any related data, their quality, accuracy, suitability and/or completeness.

Information Ratio - Measured by dividing the active rate of return by the tracking error. The higher the information ratio, the more value-added contribution by the manager.

Liability Driven Investing (LDI) - A method to optimally structure asset investments relative to liabilities. The change in liabilities is estimated by the Ryan Labs Generic PPA Index of appropriate duration for that Plan. This benchmark is based on generic data and is therefore an approximation. RVK is not an actuarial firm, and does not have actuarial expertise.

Estimated Funded Status - The estimated ratio of a Plan's assets relative to its future liabilities. This is calculated by dividing the Plan's asset market value by the estimated present value of its liabilities. The higher the estimated funded status, the better the Plan's ability to cover its projected benefit obligations. An estimated funded status of 100% indicates a Plan that is fully funded.Estimated PV of Liabilities - An estimate of a Plan's future liabilities in present value terms. The beginning of the period liability is provided by the Plan's actuary. The period-end present value liability estimate provided in this report is derived by applying the estimated percentage change generated using the Ryan Labs Generic PPA Index with duration similar to that reported on the most recent actuarial valuation report.Duration of Liabilities - The sensitivity of the value of a Plan's liabilities to changes in interest rates, as calculated by the Plan's actuary.Duration of Assets - The dollar-weighted average duration of all the individual Plan assets.Estimated Plan Hedge Ratio - The estimate of how well a Plan's investment portfolio is hedged against changes in interest rates - a primary driver of funded status movements. This is calculated by dividing the dollar-weighted values of both the Plan asset duration by the liability duration and multiplying by the estimated funded status. An estimated plan hedge ratio of zero indicates that the Plan's liabilities have not been hedged, whereas a value of one indicates fully hedged.

Modified Duration - The approximate percentage change in a bond's price for a 100 basis point change in yield, assuming the bonds’ expected cash flows do not change.

Glossary

Mutual Fund Performance - Whenever possible, manager performance is extended for any share class that does not have 10 years of history. Using Morningstar’s methodology, a single ticker within the same fund family (often the oldest share class) is chosen to append historical performance.

Net Cash Flow - The sum, in dollars, of a portfolio's contributions and withdrawals. This includes all management fees and expenses only when performance shown is gross of fees.

Peer Groups -Plan Sponsor Peer Groups - RVK utilizes the Mellon Analytical Solutions Trust Universe along with the Investment Metrics Plan Sponsor Universe. The combined Mellon Analytical Solutions Trust Universe and Investment Metrics Plan Sponsor Universe is used for comparison of total fund composite results and utilizes actual client performance compiled from consultant and custodian data. The Plan Sponsor Peer Group database includes performance and other quantitative data for over 2,100 plans which include corporate, endowment, foundation, public, and Taft Hartley plans. Plan Sponsor Peer Groups are gross of fees.Investment Manager Peer Groups - RVK utilizes Investment Metrics’ Peer Groups for investment manager peer comparison and ranking. The Investment Metrics Peer Group database includes performance and other quantitative data for over 840 investment management firms and 29,000 investments products, across more than 160 standard peer groups. Mutual Fund Peer Groups are net of fees. For more information on Peer Groups, visit https://www.invmetrics.com/style-peer-groups.

Percentile Rankings - Percentile rank compares an individual fund's performance with those of other funds within a defined peer group of managers possessing a similar investment style. Percentile rank identifies the percentage of a fund's peer group that has a higher return (or other comparative measurement) than the fund being ranked. Conversely, 100 minus the individual fund's ranking will identify the percentage of funds within the peer group that have a lower return than the fund being ranked.

1 - Highest Statistical Value 100 - Lowest Statistical Value

Example: American Funds AMCP;R-4 (RAFEX) is ranked in the 4th percentile within the IM US Equity Large-Cap Growth Funds (MF) Peer Group for the Sharpe Ratio. Within the IM US Equity Large-Cap Growth Funds peer group, 4% of the other funds performed better than American Funds AMCP;R-4 (RAFEX), while 96% of the funds performed worse.

Performance Methodology - RVK calculates performance for investment managers and composites using different methodologies. Investment Managers - Performance is calculated for interim periods between all large external cash flows for a given month and geometrically linked to calculate period returns. An external cash flow is defined as cash, securities, or assets that enter or exit a portfolio. RVK defines a "large cash flow" as a net aggregate cash flow of ≥10% of the beginning-period portfolio market value or any cash flow that causes RVK calculated performance to deviate from manager/custodian reported performance in excess of 5 basis points for a given month.Composites - The Modified Dietz methodology is utilized to calculate asset class, sub-asset class, and total fund composite performance. The Modified Dietz method calculates a time-weighted total rate of return that considers the timing of external cash flows; however, it does not utilize interim period performance to mitigate the impact of significant cash in- and outflows to the composite.

RVK calculates performance beginning with the first full month following inception. Since inception performance may vary from manager reported performance due to RVK using the first full month of returns as the inception date. Performance for both managers and composites is annualized for periods greater than one year.

Portfolio Characteristics - Due to disclosure guidelines set by each investment manager, portfolio characteristics shown are as of the most recent date available.

Price to Earnings Ratio - The ratio of a company’s share price to its per-share earnings

Private Equity Quartile Ranks - Private Equity quartile ranks are generated using vintage year peer group data provided by Thomson Reuters, and are based on each fund’s annualized, since inception internal rate of return (IRR). Three Private Equity peer groups are available via Thomson Reuters: Buyout, Venture, and All Private Equity. Ranks are available quarterly, at a one-quarter lag. Return - Compounded rate of return for the period.

% Return - The time-weighted rate of return of a portfolio for a given period.

R-Squared - The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark.

Risk Free Benchmark – ICE BofAML 3 Mo US T-Bill Index unless specified otherwise.

Glossary

RVK Liquidity Rating - A qualitative method for determining the relative amount of liquidity in a portfolio. The characteristics considered when determining relative liquidity include trading volume, gates for redemption, leverage, nature of transactions, and pricing mechanisms. The RVK Liquidity Rating is calculated using beginning of month investment weights applied to each corresponding asset class liquidity rating.

Asset Class RVK Liquidity Rating Asset Class RVK Liquidity Rating

Liquid Investments Less Liquid Investments

T-Bills and Treasurys 100 Fixed Income Plus Sector 50Cash Equivalents 98 Bank Loans 50TIPS 95 Stable Value (Plan Sponsor Directed) 50US Large Cap Equity 95 Absolute Return Strategies 35Diversified Real Return 93Stable Value (Participant Directed) 91Non-US Large Cap Equity 90 Not Liquid InvestmentsGlobal Tactical Asset Allocation 88 Core Real Estate 25US Small Cap Equity 85 Core Plus Real Estate 15REITS 85 Non-Core Real Estate 5Non-US Small Cap Equity 85 Private Equity Funds of Funds 5Emerging Markets Equity 85Core Fixed Income 85Core Plus Fixed Income 80

Sector Allocation - Negative fixed income sector allocation reflects manager’s use of derivatives, short selling, or interest rate swaps.

Sharpe Ratio - Represents the excess rate of return over the risk-free return (i.e., ICE BofAML 3 Mo US T-Bill Index unless specified otherwise), divided by the standard deviation of the excess return to the risk free asset. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance.

Simple Alpha - The difference between the manager's return and the benchmark's return.

Spread Duration - The approximate percentage change in a bond's price for a 100 basis point change in its spread over a Treasury of the same maturity.

Standard Deviation - A statistical measure of the range of a portfolio's performance. The variability of a return around its average return over a specified time period.

Time Period Abbreviations - QTD - Quarter-to-Date. CYTD - Calendar Year-to-Date. FYTD - Fiscal Year-to-Date. YOY - Year Over Year.

Thematic Classification - Represents dedicated manager allocations; as such, thematic allocations are approximations. RVK categorizes the following asset classes as Alpha, Capital Appreciation, Capital Preservation, and Inflation:

Alpha Capital Appreciation Capital Preservation InflationAbsolute Return Strategies Public Equity Core Fixed Income TIPSCurrency Overlay Private Equity CMBS Fixed Income Bank Loans

Preferred Securities Asset Backed Fixed Income Core Real EstateHigh Yield Domestic Core Plus Fixed Income Real ReturnConvertible Fixed Income Mortgage Backed Fixed Income Inflation HedgesTALF Funds International Developed Fixed Income REITSDistressed Debt Cash Equivalents CommoditiesEmerging Market Fixed Income Stable ValueValue Added Real EstateOpportunistic Real Estate

Total Fund Attribution – The Investment Decision Process (IDP) model provides an approach to evaluating investment performance that applies to all asset classes and investment styles. The IDP model is based on a top-down hierarchy framework of investment decisions, with each decision contributing to the overall profit or loss. The IDP approach starts from the strategic asset allocation and follows the flow of the investments down to the manager’s skill.

Strategic Asset Allocation (SAA) – The percentage return gained or lost from the long-term strategic asset allocation decision, the most significant determinant of long-term performance. SAA is the product of the target asset allocation multiplied by the corresponding benchmark returns. Tactical Asset Allocation (TAA) – The percentage return gained or lost from not having been precisely allocated at the target asset allocation mix, whether by deviations that are tactical in nature or a by-product of moving towards the target mix. TAA is the product of the actual asset allocation multiplied by the broad asset class benchmarks, less the SAA. Style Selection (SS) – The percentage return gained or lost from intentional style biases within each asset class (e.g. value rather than core or overweight to emerging markets relative to benchmark). SS is the product of the actual manager allocation within each asset class multiplied by their specific benchmark, less TAA. Manager’s Skill (MS) – The percentage return gained or lost from manager value added relative to their specific benchmark. MS is the product of the actual manager allocation multiplied by their achieved excess return.

Total Fund Beta - Total Fund Beta is calculated using the S&P 500 as the benchmark. It represents a measure of the sensitivity of the total fund to movements in the S&P 500 and is a measure of the Total Fund's non-diversifiable or systematic risk.

Tracking Error - A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark.

Glossary

Treynor Ratio - Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Treynor ratio represents the excess rate of return over the risk-free rate (i.e., ICE BofAML 3 Mo US T-Bill Index unless specified otherwise) divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the better historical risk-adjusted performance.

Unit Value - The dollar value of a portfolio, assuming an initial nominal investment of $100, growing at the compounded rate of %Return for a given period.

Up Market Capture - Up market by definition is positive benchmark return and up market capture represents the ratio in % terms of the average portfolios return over the benchmark during the up market period. The higher the value of the up market capture the better the product's performance.

Yield to Maturity - The rate of return achieved on a bond or other fixed income security assuming the security is bought and held to maturity and that the coupon interest paid over the life of the bond will be reinvested at the same rate of return. The 30-Day SEC Yield is similar to the Yield to Maturity and is reported for mutual funds.

Yield to Worst - The bond yield calculated by using the worst possible yield taking into consideration all call, put, and optional sink dates.

Private Markets &

Asset Allocation ReviewMunicipality of Anchorage Trust Fund

May 8, 2019

Asset Allocation Impact & Review

What is a Private Markets Investment?

Illiquid

Capital is committed to a closed end fund structure. Once committed, investors typically cannot redeem

their investment and must wait for the fund to fully mature and liquidate

Closed end structure

Investment vehicles fundraise capital for limited periods of time and at irregular intervals

• A fund might open and close within a twelve month period, then not be available for another

three years

Blind pools of assets

The underlying investments are not typically known at the time of commitment

• Investors are relying on the reputation and history of the fund managers

Privately held and valued

Ownership is held by a limited pool of owners, information is not publicly available, and there are no

public trading markets

• Valuations are determined by the managers or third party source, not by a public market

• Privately negotiated investments, managers must be skilled at sourcing opportunities

Fees

Management fees are high relative to traditional asset classes and not transparent

• Typically include a higher annual management fee, often based on committed assets

• Investors are generally required to share the profits of the investments with the manager,

known as “carried interest” or “incentive fee”

Services Needed in Managing a Program

The list of services needed to manage a Private Markets program includes:

Discovery, evaluation, and

selection of initial and ongoing investments

Due Diligence

Negotiation over terms and fees with

underlying managers

Portfolio Construction and Asset Allocation

Portfolio Reconfiguration – in

response to changes in the

market environment

Review of fund amendments

Disposition of stock distributions

Risk Monitoring

Termination/exit of investments as necessary and

feasible

*See appendix for custom index definitions.

Asset Allocation Study2019 RVK Capital Markets Assumptions

Return & Risk Assumptions

Correlation Matrix

Asset Class

Arithmetic

Return

Assumption

Standard

Deviation

Assumption

IndexLongest Historical

Time Frame

Annualized

Arithmetic

Return

Annual

Standard

Deviation

Broad US Equity 6.80 17.80 Russell 3000 Jan 1979 - Dec 2018 11.48 16.43

Broad International Equity 8.90 20.95 MSCI ACW Ex US IMI (Gross) Jun 1994 - Dec 2018 5.06 21.86

US Agg Fixed Income 3.75 6.00 Bloomberg US Agg Bond Jan 1976 - Dec 2018 7.27 6.82

Emerging Markets Debt (Local) 5.75 12.50 JPMorgan GBI-EM Global Div. (USD) Jan 2005 - Dec 2018 4.79 12.18

Bank Loans 5.25 10.00 CS Leveraged Loan Feb 1992 - Dec 2018 5.48 10.96

Core Real Estate 6.00 12.50 NCREIF ODCE (Gross) (AWA) Mar 1978 - Dec 2018 8.50 9.35

Non-Core Real Estate 8.00 22.50 NFI-CEVA VW Gross Oct 1997 - Sep 2019 12.41 16.58

Private Assets 9.00 20.20 Custom Priv. Assets Index Mar 1992 - Sep 2018 10.20 7.12

Broad US

Equity

Broad

International

Equity

US Agg Fixed

Income

Emerging

Markets Debt

(Local)

Bank LoansCore Real

Estate

Non-Core Real

EstatePrivate Assets

Broad US Equity 1.00 0.83 0.16 0.54 0.46 0.22 0.13 0.11

Broad International Equity 0.83 1.00 0.00 0.76 0.51 0.27 0.08 0.12

US Agg Fixed Income 0.16 0.00 1.00 0.37 -0.04 -0.04 -0.07 -0.05

Emerging Markets Debt (Local) 0.54 0.76 0.37 1.00 0.36 0.10 -0.09 0.04

Bank Loans 0.46 0.51 -0.04 0.36 1.00 0.18 0.03 0.01

Core Real Estate 0.22 0.27 -0.04 0.10 0.18 1.00 0.70 0.17

Non-Core Real Estate 0.13 0.08 -0.07 -0.09 0.03 0.70 1.00 0.17

Private Assets 0.11 0.12 -0.05 0.04 0.01 0.17 0.17 1.00

Efficient Allocations

The table below shows the range of possible optimal allocations given the selected asset classes and constraints listed under "Min" and "Max." This range illustrates the tradeoff between return and risk; additional return can only be achieved by undertaking additional risk.

Frontier 1

Asset Allocation StudyEfficient Frontier Table

Group Constraint: US must be greater than or equal to Int’l Equity throughout all portfolios shown.

Expected Compound Return Increases

Min Max 1 2 3 4 5 6 7 8 9 10Current

Target

Add Non-

Core RE

Add Priv

Assts

(50/50)

Add NC RE &

Priv Assets

(50/50)

Broad US Equity 20 50 20 20 20 20 20 20 20 24 29 35 35 32 30 28

Broad International Equity 10 40 10 10 10 10 12 17 20 24 29 35 25 23 25 21

US Agg Fixed Income 15 60 60 55 50 38 29 25 19 15 15 15 24 24 20 20

Emerging Markets Debt (Local) 0 8 0 0 0 0 1 0 3 0 0 0 5 5 5 5

Bank Loans 0 8 0 1 3 7 8 8 8 8 0 0 3 3 3 3

Core Real Estate 0 15 5 4 3 10 15 15 15 15 13 0 8 8 7 8

Non-Core Real Estate 0 5 1 3 5 5 5 5 5 5 5 5 0 5 0 5

Private Assets 0 10 4 7 10 10 10 10 10 10 10 10 0 0 10 10

Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Capital Appreciation 35 41 47 52 56 60 66 70 72 85 68 68 73 72

Capital Preservation 60 55 50 38 29 25 19 15 15 15 24 24 20 20

Alpha 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Inflation 5 4 3 10 15 15 15 15 13 0 8 8 7 8

Expected Arithmetic Return 5.23 5.47 5.70 5.94 6.18 6.41 6.65 6.88 7.12 7.36 6.43 6.45 6.78 6.75

Expected Risk (Standard Deviation) 7.10 7.17 7.33 7.65 8.23 8.98 9.77 10.76 11.96 13.64 12.07 11.40 11.55 10.75

Expected Compound Return 4.99 5.23 5.45 5.66 5.86 6.03 6.21 6.34 6.46 6.50 5.75 5.84 6.16 6.21

Exp. Return (Arith.)/Risk Ratio 0.74 0.76 0.78 0.78 0.75 0.71 0.68 0.64 0.60 0.54 0.53 0.57 0.59 0.63

RVK Exp Eq Beta (LCUS Eq = 1) 0.35 0.35 0.36 0.37 0.40 0.44 0.48 0.54 0.61 0.72 0.64 0.60 0.60 0.55

RVK Liquidity Metric (T-Bills = 100) 81 77 73 67 63 64 63 65 70 78 82 78 74 69

Efficient Frontier

The figure below illustrates the relationship between risk and return. The risk of each alternative allocation is plotted against the horizontal axis, while the return is measured on the vertical axis. The line connecting the points represents all the optimal portfolios subject to the given constraints and is known as the "efficient frontier." The upward slope of the efficient frontier indicates the direct relationship between return and risk.

Frontier 1

Asset Allocation StudyEfficient Frontier Graph

Frontier #1 – Current Target

Frontier #2 – Add Non-Core Real Estate

Frontier #3 – Add Private Assets (50/50)

Frontier #4 – Add Non-Core RE & Private Assets

As new asset classes are

introduced, the efficient

frontiers move up and to the

left (more return for less risk)

The table below shows the expected return by percentile for each portfolio on Frontier 1 for the 1, 3, 5, and 10 year periods.

Please see the Monte Carlo introduction for more information assumed distribution.

Asset Allocation StudyEfficient Frontier Graph

1 Year 1 2 3 4 5 6 7 8 9 10Current

Target

Add Non-

Core RE

Add Priv

Assts (50/50)

Add NC RE &

Priv Assets

(50/50)

1st Percentile -11.61 -11.51 -11.43 -10.75 -11.51 -13.54 -14.87 -18.55 -22.82 -28.83 -23.04 -21.33 -21.60 -19.00

5th Percentile -5.83 -5.53 -5.16 -4.73 -4.86 -5.64 -6.18 -7.88 -10.43 -13.58 -11.49 -10.32 -9.91 -8.50

25th Percentile 0.81 1.12 1.40 1.75 1.81 1.62 1.47 0.94 0.06 -1.15 -0.82 -0.25 0.12 0.76

50th Percentile 5.22 5.50 5.77 5.95 6.16 6.40 6.62 6.84 7.10 7.35 6.23 6.36 6.68 6.76

75th Percentile 9.73 9.98 10.18 10.40 10.83 11.49 12.12 13.12 14.51 16.13 13.66 13.15 13.55 12.93

95th Percentile 16.63 16.77 16.90 16.88 17.61 19.11 20.19 22.69 25.86 29.79 25.51 24.10 24.43 22.82

99th Percentile 21.68 21.67 21.69 21.73 22.90 24.99 26.34 29.97 34.35 40.18 34.43 32.39 32.80 30.22

3 Years

1st Percentile -4.83 -4.91 -4.98 -4.74 -4.94 -6.09 -6.86 -8.89 -11.99 -15.99 -12.30 -11.11 -11.13 -9.42

5th Percentile -1.47 -1.21 -0.93 -0.64 -0.65 -1.19 -1.51 -2.61 -4.08 -6.44 -5.02 -4.24 -3.90 -3.10

25th Percentile 2.47 2.75 3.02 3.31 3.46 3.35 3.37 3.08 2.57 1.77 1.74 2.15 2.51 2.91

50th Percentile 5.18 5.39 5.65 5.92 6.14 6.33 6.56 6.73 6.89 6.97 6.01 6.07 6.46 6.52

75th Percentile 7.80 8.00 8.21 8.43 8.75 9.25 9.68 10.33 11.12 12.01 10.29 10.09 10.47 10.18

95th Percentile 11.74 11.91 12.06 12.13 12.60 13.57 14.28 15.72 17.56 19.78 17.11 16.42 16.76 15.83

99th Percentile 14.15 14.29 14.47 14.64 15.42 16.64 17.53 19.50 21.94 25.27 22.27 21.28 21.49 20.20

5 Years

1st Percentile -2.69 -2.68 -2.66 -2.30 -2.46 -3.25 -3.81 -5.38 -8.12 -11.95 -7.83 -6.79 -6.81 -5.43

5th Percentile -0.02 0.19 0.40 0.64 0.61 0.17 -0.07 -0.98 -2.22 -4.03 -2.56 -1.98 -1.63 -0.97

25th Percentile 3.01 3.28 3.54 3.81 3.97 3.93 3.98 3.76 3.42 2.70 2.63 2.97 3.32 3.66

50th Percentile 5.09 5.33 5.60 5.85 6.08 6.27 6.47 6.66 6.78 6.85 6.02 6.10 6.46 6.49

75th Percentile 7.13 7.38 7.64 7.85 8.16 8.57 8.90 9.49 10.13 10.94 9.42 9.26 9.61 9.37

95th Percentile 10.14 10.35 10.54 10.77 11.21 11.97 12.57 13.65 14.98 16.61 14.38 13.82 14.23 13.51

99th Percentile 12.29 12.42 12.56 12.74 13.23 14.27 15.06 16.62 18.51 20.98 18.33 17.40 17.79 16.72

10 Years

1st Percentile -0.36 -0.16 -0.03 0.27 0.25 -0.32 -0.59 -1.64 -3.36 -5.98 -3.81 -3.04 -2.99 -2.12

5th Percentile 1.37 1.58 1.78 2.05 2.09 1.83 1.74 1.09 0.12 -1.37 -0.48 0.08 0.36 0.95

25th Percentile 3.58 3.82 4.06 4.34 4.50 4.54 4.59 4.46 4.15 3.64 3.43 3.70 4.05 4.33

50th Percentile 5.05 5.30 5.56 5.80 6.03 6.21 6.41 6.56 6.69 6.70 5.92 6.00 6.33 6.39

75th Percentile 6.48 6.72 6.96 7.18 7.50 7.84 8.18 8.59 9.06 9.54 8.33 8.28 8.60 8.46

95th Percentile 8.61 8.88 9.09 9.23 9.58 10.17 10.67 11.48 12.46 13.73 11.90 11.57 11.87 11.40

99th Percentile 10.10 10.29 10.53 10.64 11.11 11.95 12.58 13.68 15.05 16.66 14.44 14.01 14.32 13.67

The table below shows the percentage chance of achieving or exceeding the given return for each portfolio on Frontier 1 for the 1, 3, 5, and10 year periods.

Please see the Monte Carlo introduction for more information about assumed distribution.

Asset Allocation StudyMonte Carlo Simulations – Return Targets

1 Year 1 2 3 4 5 6 7 8 9 10Current

Target

Add Non-

Core RE

Add Priv

Assts

(50/50)

Add NC RE

& Priv

Assets

(50/50)

Target 6% 45 47 48 50 51 52 53 54 54 54 51 51 53 53

Target 6.5% 43 44 45 46 48 50 51 51 52 53 49 49 51 51

Target 7% 40 41 42 43 45 47 48 49 50 51 48 47 49 49

Target 7.5% 37 38 39 41 42 44 46 47 48 50 45 45 47 47

Target 8% 34 35 36 37 39 41 43 45 47 48 43 43 45 44

Target 8.5% 31 33 34 34 36 39 41 43 45 47 42 41 43 42

3 Years

Target 6% 41 44 47 49 51 53 55 55 56 55 50 51 53 54

Target 6.5% 36 39 41 44 46 49 51 52 52 52 47 47 50 50

Target 7% 32 34 36 38 41 44 46 48 49 50 44 44 46 46

Target 7.5% 27 29 32 33 36 39 42 44 46 47 41 40 43 42

Target 8% 23 25 27 29 31 35 37 40 43 44 38 37 40 39

Target 8.5% 19 21 23 24 27 31 34 37 40 42 35 34 36 35

5 Years

Target 6% 38 41 45 48 51 53 55 56 56 55 50 51 54 55

Target 6.5% 32 35 38 41 44 47 50 51 52 52 46 46 50 50

Target 7% 27 30 32 34 38 42 44 47 48 49 42 42 45 45

Target 7.5% 22 24 26 29 32 36 39 42 44 45 38 38 41 41

Target 8% 17 19 21 23 26 30 34 37 40 42 34 34 37 36

Target 8.5% 13 15 17 18 21 26 29 33 36 39 31 30 33 32

10 Years . . . . . . . . . . . . . .

Target 6% 33 37 42 46 50 53 56 57 57 56 49 50 54 55

Target 6.5% 25 29 33 37 41 46 49 51 52 52 43 44 48 49

Target 7% 18 21 24 28 33 38 41 44 46 47 38 38 42 42

Target 7.5% 13 15 17 20 25 30 34 38 41 42 33 32 36 36

Target 8% 9 10 12 14 18 23 27 32 36 38 28 28 31 30

Target 8.5% 6 7 8 10 13 17 21 26 30 34 24 23 26 24

Private Markets Implementation

Work Plan

Determine allocation

and to what asset class

RVK to conduct a pacing analysis to

determine commitment

amounts

Develop a forward calendar

RVK to source ideas and present recommendations as best ideas are

found

Reporting and

ongoing monitoring

Private Markets Fund Lifecycles

Private Markets commitments are drawn down

over time and distributions are made as a fund

matures.

As a result, over-committing is required in order

to meet a planned allocation target.

• Typically 1.5X – 2X target

• Follow-on commitment needed

• To maintain allocation exposure

• Vintage year diversification

Because the allocation level of the portfolio

declines with distribution activity, a regular

commitment plan is required to establish and

maintain appropriate commitment targets

Total fund growth (net of spending rate)

Timeline to reach target allocation

Annual review of commitment pace

and budget

Additional allocation factors to consider

Vintage Year Diversification

Not participating in specific years can have a significant effect on overall return

To achieve the long-term expected return, it is important to maintain consistent exposure in each vintage year

0%

5%

10%

15%

20%

25%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Real Estate Vintage Year Returns

Median IRR Average IRR

Data is shown through December 2015 due to the immaturity of more recent IRR returns.

Private Real Estate Portfolio Buildout

COMMITMENT DATE STYLE SECTOR – REGION COMMITMENT

2005 Core Open-Ended Fund Diversified – U.S. $11.2 million

Strategic Plan Progress (2019 - 2021)

Real Estate

65% of target

13.00% Target

8.49% Current

Core 100%

8% Core Target

5% Non-Core Target

33%

24%

17%

24%

3%

Multifamily

Office

Industrial

Retail

Hotel

Data shown is as of 2018 Q4.

Portfolio Construction - Private Real Estate

Commitment Schedule

Core

•No more commitments in 2019 or 2020

Non-Core

•Potentially up to three fund commitments over multiplevintages*

•Approximately $20-25 million of commitments over that time*

Allocation

VINTAGE CORE NON-CORENO. OF

FUNDS

2019 N/A TBD 1

2020 N/A TBD 1

2021 TBD TBD 1

*Subject to change after initial pacing study.

Proposed Sector Exposure

Multifamily

Office

Industrial

Retail

Hotel

Expand sector exposure in Multifamily

(senior housing) and Office (specialty office).

Implementation Approaches

Each Private Markets asset class has

similar access vehicles for investors

Off-the-Shelf Fund-of-Funds Approach

Specialist Advisor Approach

Direct Investment Approach

These approaches vary in the control and discretion that staff, boards and committees have over

investment strategies and costs.

Certain approaches are better for certain asset classes

Non Core Real Estate, likely direct investment

Private Equity might best be accessed by a fund of funds service model

Private Credit is likely to be a hybrid of each

Expected Administrative Needs

Approval of a recommendation to invest Approved by Municipal Treasurer and supported by

Advisory Commission)

Completion of Subscription documents

May involve a legal review, depending on Municipality

policies

Treasurer and supported by RVK

Complete capital call and distribution

requests Treasury and accounting

Reconcile cash flow and market values with

books of records Treasury and/or accounting

Quarterly reporting and monitoring of

investment portfolio

Predominantly handled by RVK

Performance reviews at Advisory Commission

meetings

Periodic fund amendment and partnership

terms reviews

Treasury and supported by RVK

Ad hoc, but typically a few per fund life

Ongoing investment commitments, as

recommended by pacing All parties

Non Core Real Estate

Investment in Real Estate

What is Real Estate?

Reasons for Investment in Real Estate

• Low Correlation: Real estate-oriented investments have generated attractive long-term returns with low correlations to

traditional asset classes

• Inflationary Hedge: Rental growth and appraised values are tied to inflation, as the replacement cost of real estate acts as

a natural hedge

• Liability Matching: Longer-term nature of real estate hedges against longer-term liabilities

• Higher Sharpe Ratio: The inclusion of real estate in a broadly diversified portfolio can increase expected returns while

lowering overall portfolio volatility, resulting in higher risk-adjusted return ratios

• Increased Transparency: Greater numbers of opportunities in both public and private real estate that are much more

transparent than in the past, and stronger corporate governance protections are available to investors

Traditional Commercial Real Estate Sectors

• Office

• Retail

• Apartments / Residential

• Industrial

• Hotels / Hospitality

Non-Traditional Commercial Real Estate Sectors

• Self Storage

• Senior Housing

• Student Housing

• Other “Hybrid” Types

• (e.g., Health Care, Infrastructure)

Private Real Estate Manager Selection

Manager selection is critical and access to top quartile managers is crucial

• Significant variance in performance between top quartile and bottom quartile managers

• The spread in Net Internal Rate of Return (“IRR”) between top quartile and bottom quartile performers has

averaged 13.6% since 1997

• Top quartile managers have generated an 19.8% average annual return after the payment of all fees and

expenses – a full 6.0% greater than median performers

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

201

5

201

4

201

3

201

2

201

1

201

0

200

9

200

8

200

7

200

6

200

5

200

4

200

3

200

2

200

1

200

0

199

9

199

8

199

7

Quartile Net IRR Performance by Vintage Year

Top Quartile Median Bottom Quartile

Source: Preqin - All Real Estate (net IRR) as of most recent available data. Preqin does not report IRR quartile performance for

2016-2018 vintage years due to the immaturity of those vintage years

Private Real Estate – RVK Focus

RVK Focus on Private Real Estate

Core Open-

Ended Funds

Core Plus

Funds

Niche Property

Sector Funds

Value Added

Funds

Special

Situations

Non-US or

Global Strategies

Core Real Estate Non-Core Real Estate

Private Real Estate Categories

Private real estate investments can be broken into two “risk” categories:

Core Real Estate Non-Core Real Estate

Typical Fund Structure Open-Ended, Perpetual Life Closed-Ended, 8-10 Year Fund Life

Debt Limitations Typically < 40% Typically 50% - 70%

Fees ChargedAsset Management Fees

(Limited, if any, incentive fees)Asset Management + Incentive Fees

Expected ReturnsNet IRR: 6% - 8%

(Typically 70%+ generated through income)

Net IRR: 10% -14%

(Majority generated through capital gains)

Return Volatility Lower Higher

Liquidity Moderate Low

Capital Expenditures Minimal Greater

Typical StrategyBuy and Hold; Maximize Operating Income; Minimal

Value-Add components

Buy at discount and convert to Core RE through

repositioning, releasing, and/or redevelopment;

Maximize capital appreciation potential

1. “Core” – strategies focused on stabilized properties characterized by (i) fewer property-level risks, (ii) fewer

“problems” that need to be fixed, and (iii) a greater reliance on income, but with lower absolute returns.

2. “Non-Core” – strategies generally focused on creating value by fixing property-level problems, characterized

by (i) greater property-level risk, (ii) more reliance on capital appreciation, and (iii) higher total return potential.

Core Real Estate

Focus on Existing Assets

• Most core real estate assets have minimal value-add

components.

• Typical characteristics of assets considered to be

core include:

– High profile or “trophy-assets”

– Top-tier markets

– Mission critical facilities to the tenant

– Limited vacancy and substantial in-place income

Core Managers Buy Assets to Extract Value

Through Income

• Managers typically buy and hold core assets and

actively manage tenancy to maximize in-place

income.

• Core managers typically do not access assets at

significant discount to valuations. Managers may

develop new assets if prices for existing assets far

exceeds replacement costs but this is typically a

limited focus given the emphasis on income.

• Asset and market selection of assets is crucial as

core valuations are intended to be less volatile vis-à-

vis value-added.

Typically accessed through:

• Open-ended, private commingled fund structures.

• Publicly traded REITs or REOCs.

Exp

ecte

d R

etu

rn

Expected Volatility (Risk)

Core

Up to 40%

Leverage

Substantially

Leased

Non-Core

40% Leverage

Repositioning

Re-Leasing

Development

Non-Core Real Estate

Focus on Existing Assets That Were Once Core

• Non-core real estate assets may have been

considered core real estate at some point, but have

one or more components that make them non-core

• Typical characteristics of assets considered to be

value-added include:

– Over-leveraged asset (repositioning)

– Higher than core-level of vacancy (releasing)

– “Dated” building that needs remodeling/upgrades

(redevelopment)

Non-Core Managers Buy Assets to Maximize Value

and Then Sell and/or Try to Make Them Core

• Once a manager has implemented and has

completed its value-creation strategy, it often sells

the asset to a core real estate buyer or an investor

looking to further improve the asset

• Lower purchase prices than core real estate but

often with a limited income component generated

during the holding period

• Non-core real estate may require extensive

redevelopment, releasing or ground-up development

to extract value.

Typically accessed through:

• Closed-ended, private commingled fund structures.

Exp

ecte

d R

etu

rn

Expected Volatility (Risk)

Core

Up to 40%

Leverage

Substantially

Leased

Non-Core

40% Leverage

Repositioning

Re-Leasing

Development

Different Cash Flow Profiles

How do the cash flows of Core Real Estate Funds compare to Non-Core?

• Core funds are typically open-ended (infinite life), while non-core funds are typically closed-ended (self-liquidating,

finite life).

• Returns from core funds are approximately 20% capital gains and 80% income. Non-core funds are approximately

50% capital gains and 50% income.

• The cumulative net cash flow from non-core funds tends to be greater.

Typical Private Real Estate Fund Fee Structure

Management fees should cover the manager’s overhead costs, while majority of fees are paid as

back-ended incentive compensation – in other words, the manager should only make money

when investors make money.

Management Fee

An annual fixed fee charged as a % of committed or invested capital. Market-standard varies based on strategy but has been

trending lower in recent years.

Incentive Compensation

Carried Interest

• Incentive fees paid to the manager within real estate limited partnerships are known as “carried interest” (commonly

referenced as the “carry” or “promote”)

• The carried interest is typically 15 – 20% of total fund profits

Preferred Return

• Most carried interest fees are paid only after a fund achieves a certain return threshold known as the “preferred return”

or “hurdle rate” – typically calculated as an internal rate of return (“IRR”) on invested equity

• The preferred return to investors is typically an 8 – 9% IRR, or lower for certain debt strategies or in the absence of GP

“catch up” provisions. In other words, managers do not receive incentive compensation until investors have earned an 8

– 9% annualized return.

“Catch-Ups”

• Some incentive compensation mechanisms include what is known as a “catch-up” contribution after achieving the

preferred return

• In these instances, once a real estate fund achieves the preferred return, the GP is entitled to 40% or more of any

additional cash flows in order to “catch up” to receive 20% of profits

• The use of “catch-ups” is also declining with all but the most “brand name” managers

Considerations in Private Real Estate

Return Calculation

More difficult to measure direct real estate and private real estate fund returns due to appraisal-based

processes, compared to “marked-to-market” REITs, equities, and fixed income investments

Liquidity

Investment in direct real estate and private real estate funds cannot be entered into or liquidated as quickly as

REITs, equities, and fixed income investments

Valuation Differences

Three main approaches to valuing real estate can lead to different outcomes

• Replacement cost approach (i.e., how much would it cost to replicate a particular building?)

• Comparative sales approach (i.e., how much did a similar building sell for recently?)

• Discounted cash flow (income) approach (i.e., what value would one apply to the income generated

from a particular building?)

Fees

Private real estate investment options generally are more expensive than investment in public real estate

• However, private real estate vehicles range from core to opportunistic, with a wide range of

strategies and fees

Private Credit

Private Credit – Definition

RVK classifies investment opportunities as private credit in cases where:

• Current income represents the majority of total return

• Capital gains through price appreciation are limited

• Risk of loss is driven by borrower default and creditor recovery

• Liquidity is limited and categorized as Level 3 1

• Periodic valuation is discretionary, relying upon models and expert judgment

The asset category is typically driven by major goals of each investor’s private credit allocation.

Institutional investors most frequently categorize private credit as part of:

• A separate “credit” allocation which might also include public credit if the investor’s primary goal is

capturing esoteric return

• Part of a fixed income allocation if the investor’s primary goal is risk control

• Part of a private assets allocation if the investor’s primary goals include multiple elements (i.e., risk

control, diversification and attractive risk-return trade-off)

1 Assets with a value that cannot be determined by observable measures and include solutions where there is nominal, if any, market activity. The fair value of a

Level 3 asset can only be estimated by using significant assumptions as inputs to the valuation model.

Private Debt Characteristics

Stable Returns - Returns tend to be stable throughout market cycles relative to equity

Minimal J-curve produces higher returns in the early years of investment relative to some private equity investments

Offers investors the potential for significant income, with some potential for capital appreciation

Investors should seek to understand the asset class’ complexity and evolving opportunity set before investing

Equity-like returns with more downside protection

Some investments begin to produce income shortly after close while others do not until after the investment period has

concluded

The J-Curve is the shape and slope of a typical cash flow graph of a private equity fund. Named as such because private equity funds typically pay higher amounts of fees

relative to invested dollars in the early years of a fund’s life, resulting in low or negative performance before turning positive.

Private Credit - Introduction

• Prior to 2008, relatively few institutional credit portfolios included substantial or permanent private credit allocations.

• Since 2008, the private credit opportunity set has greatly expanded in size, breadth and complexity.

• For illustrative purposes, the sample allocation below represents one “typical” diversified institutional allocation to credit

in 2019.

Corporate Direct

Lending

High Yield Bonds &

Bank Loans

Real

Estate

Debt

Mezzanine

Structured

(CLO)

Asset-Based

Infrastructure Debt

Consumer

Royalties

Venture Debt

Rescue Financing

Insurance-Linked

Litigation Claims

Private

Core

TradedPrivate

Specialty

Private

Core Plus

Private & Opportunistic Credit – RVK Focus

RVK Focus on Private &

Opportunistic Credit

Direct Lending /

Mezzanine

Real Estate

Credit

Real Assets

Credit

Structured

Credit

Specialty

Finance

Distressed Debt / Special

Situations

Private Credit – RVK Philosophy

Benefits:

• Less efficient investment space, leading to superior risk-adjusted returns than available among more liquid,

widely traded and well-understood assets.

• Features a heavy income component and limited dependence on asset price appreciation.

Drawbacks:

• Low levels of liquidity and lower levels of long-term return vs. higher-risk asset classes such as private equity.

Appropriateness:

• Appropriate for investors that have high tolerance for illiquidity, seek to improve the risk-adjusted return of

their overall investment portfolios, and to limit their sensitivity to major markets.

• Not appropriate for investors seeking to maintain high levels of liquidity or for investors with a substantial

tolerance for volatility and extremely high (15%+) portfolio-level return requirements.

Private Credit Detailed Categories

Private Credit Non-traded, non-control, performing debt

Sub-categories Basic Definition:

Corporate direct lending Cash flow loans to diversified set of middle market companies, BDC, SBIC

Real estate debt Loans backed by real estate assets and projects

Real assets Secured credit & royalties on energy, agriculture, infrastructure, mining & Minerals,

and aircraft assets

Mezzanine Unsecured, subordinated debt of middle market companies

Asset-based lending Loans against receivables, inventories, equipment, and other fixed assets

Consumer lending Unsecured consumer debt, student loans, marketplace lending, and credit cards

Intellectual property Secured credit & royalties on healthcare, music, film/TV, brand licensing assets

Venture debt Enterprise lending made to high growth, but non-cashing flowing VC companies

Rescue financing Non-control debt of troubled companies, such as NPLs and DIP financing

Insurance linked Bilateral reinsurance agreements, life settlements

Low

er

risk

Mediu

m r

isk

Hig

her

risk

Fund strategy Description

Target

Return

(Gross IRR)

Investment

PeriodFund term Management Fee

Preferred

returnDistribution

Corporate direct

lending

• Invest directly into

corporate credit at

senior levels of the

capital structure

6 – 10% 1 – 3 years 5 -7 years

(plus 1 – 2

optional year

extensions)

Typically around

1% on invested

capital

5 – 6% 80/20

Specialty

lending/credit

opportunities

• Opportunistic

investments across

the capital structure

in complex situations

• Typically highly

structured

transactions with

debt and equity

components

12 – 20% 3 – 5 years 7 -10 years

(plus 2 – 3

optional one

year

extensions)

Typically 1.25 –

1.75% on invested

capital or less than

1% on

commitments

6 – 8% 80/20

Mezzanine • Primarily invest in

mezzanine loans

and other

subordinated debt

instruments

14 – 22% 5 years 10 years (plus

2 -3 optional

one year

extensions)

Typically 1.50 –

1.75% on

commitments

during investment

period, on a

reduced basis on

invested capital

thereafter

8% 80/20

Distressed • Invests in distressed,

stressed and

undervalued

securities

• Includes distressed

debt-for-control

15 – 25% 3 – 5 years 7 – 10 years

(plus 2 -3

optional one

year

extensions)

Various pending

target return and

strategy: 1.50 –

1.75% on

commitment or

1.50% on invested

capital

8% 80/20

Private Credit Profiles and Terms

Private Equity

What is Private Equity?

Private equity is illiquid: funds typically have a 10 to 15 year life before fully returning investor capital.

Private equity allows for managers to directly add value to portfolio companies: investors can affect

change at companies they own (new CEO, new product line, etc.) in ways that are unavailable to public

markets investors.

Private equity companies are generally smaller and more highly leveraged than public companies.

Private equity is increasingly global, with 40% of capital raised to invest outside the United States.

Why Invest In Private Equity?

The primary goal of the asset class is enhancing total portfolio return

• RVK currently estimates that the private equity asset class will return a premium of 275 basis points over public

market returns

• Observed volatility (quarterly market value fluctuations) of the asset class has been lower than large cap equity

markets

The private equity asset class provides some limited additional diversification benefits to a broadly

diversified portfolio

Private equity investments provide a way to access some sectors not readily available to public markets

Private equity investing allows skilled managers to effect meaningful change to businesses, thus

improving value

Private Equity Strategies

Outside of venture capital, individual funds may overlap multiple strategies.

Co

mp

an

y G

row

th

Company Age

Venture Capital• Rapid revenue growth• Approaching profitability• Still building out management team• 3 out of 10 “hit rate”

Sample Firm: Sequoia CapitalSample Investment: Google

Buyouts

• Stable, possibly growing revenue• Generates consistent cash flow• Seasoned management team• 7 out of 10 “hit rate”

Sample Firm: KKRSample Investment: Hertz

Turnarounds / Distressed / Special Situations• Structured investments, restructurings, mergers,

and recapitalizations.• Decent assets in complicated situations• Can use debt or equity• 7 out of 10 “hit rate”

Sample Firm: Sun CapitalSample Investment: Boston Market

Growth Equity• Profitable growing companies• Capital provided for expansion to new

markets, regions, or product lines• 6 out of 10 “hit rate”

Sample Firm: TA AssociatesSample Investment: Tempur Pedic

Natural Resources

• Upstream and midstream oil & gas

investments• Spectrum of risk approaches• 5 out of 10 “hit rate”

Sample Firm: QuantumSample Investment: Ceritas Energy II

How does Private Equity work?

A private equity manager (also called the general partner) finds investors to commit to their private equity fund.

The general partner then searches multiple private companies to purchase where they believe they

can create value.

Once these companies are purchased, the general partner then

works to create value within each company through increasing

sales or reducing costs.

Fund

launchPurchase

Company A

Purchase

Company B

Purchase

Company C

Value Creation

Sell

Company A

Sell

Company B

Sell

Company C

Fund

ends

The general partner then sells

the companies, realizing value

and returning investor’s

capital.

Proper implementation and

manager selection is the key to

overcome these challenges

Private Fund Terms

The Limited Partner (LP) is the qualified investor who provides capital to the fund and has limited liability

The investment manager functions as the fund’s General Partner (GP) and makes all the investment decisions for the fund

Capital Commitment is the amount of capital that an individual LP agreed to invest in a fund. The commitment amount generally includes management fees and expenses, as well as other expenses

GP Capital Commitment is the amount a GP members invest in the fund. Industry standard is around 1 – 2%

Limited Partner

(LP)(Investor)

Limited Partner

(LP)

(Investor)

Limited Partner

(LP)

(Investor)

Closed End

Private Markets

Fund

General

Partner (GP)

Investment

A

Investment

BInvestment

C

The Importance of Manager Selection

All Private Equity Source: Preqin – All Private Equity Funds.

Equity Funds Source: Investment Metrics US Equity Funds (SA+CF+MF)

Private Equity performance is represented by the annualized since inception

internal rate of return.

22.1%

12.7%

6.0%

11.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

All Private Equity Public Equity Funds

Annualized Performance Differential(25th - 75th Percentile)

January 1, 1980 - September 30, 2018

25th Percentile 75th Percentile

Private Equity Terms

• Private equity funds typically have a fixed ten-year term with possible one to two year extensions; fund of funds

have twelve-year terms with two to three year extensions

• The investment period is generally around five years for direct funds and three to five years for fund-of-funds. This

is the time when a fund actively seeks out and invests in new opportunities

• Most of the capital will be drawn and most of the management fees and expenses will also be paid during the

investment period.

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

-$2,000

-$1,500

-$1,000

-$500

$0

$500

$1,000

$1,500

$2,000

Year1

Year2

Year3

Year4

Year5

Year6

Year7

Year8

Year9

Year10

Cum

ula

tive C

ash F

low

s

Thousands

Cash F

low

s p

er

Year

Thousands

Cash Drawn Cash Distributed Cumulative Cash Flow

Unique Considerations

Illiquidity

• Private equity investmentsconsist predominantly ofholdings in privately heldbusinesses with limitedmarketability prior to anexit (typically via an IPO oracquisition)

Long Investment Horizon

• Private equity fundinvestments areconsidered long term, witha horizon of 10 years ormore

Cash Flow Uncertainty

• Cash flows are dependentupon market dynamics andcan be difficult to forecast

• Capital calls depend uponthe availability ofinvestment opportunities,while distributions dependon the availability ofinvestment exits

Lower Transparency

• Private equity firms typicallyraise capital with limitedinsight into the actualinvestments that will beincluded with the fund

• Therefore, developingcomfort with managers’ skill,as opposed to underlyinginvestments, is essential

Higher Fees

• Typical fees to underlyingmanagers includemanagement fees and carriedinterest, or incentive fee onthe investment gains

• Fees are typically based oncommitted capital, regardlessof the amount of capitalcalled

Proper implementation and manager selection is the key to overcome these

challenges

Structure Comparison

Structure Summary Advantages Risks

Fund of Funds Multi-layered structure where the

client invests with a manger who

selects 15 to 30 underlying funds

Broad diversification across

managers and vintage years

Double layer of fees, potential for

over-diversification, potential for

longer tail end position due to

number of companies

Direct Funds Investments with private equity

funds

Direct access to PE managers RVK recommends 3+ annual

commitments annually to achieve

diversified portfolio, difficult for

smaller investors to access best in

class managers

Co-Investment Funds Invests alongside different direct

funds in 15 to 40 deals

Low fees relative to both direct

funds and fund of funds, built-in

diversification

More concentrated than fund of

funds

Secondaries Funds Acquires older private equity fund

interests from investors

Potential for rapid capital

deployment, stronger earlier cash

flows

Over diversified portfolios even

above fund of funds, overheated

market

Appendix

J Curve

The term J Curve refers to the shape of a private market fund’s performance during it’s lifespan.

-15%

-10%

-5%

0%

5%

10%

15%

20%

0 1 2 3 4 5 6 7 8 9 10 11 12

Year of Fund Life

Fund IRR

Private markets funds often experience negative IRRs during the beginning of the fund’s life.

• Primarily caused by management fees and time required to invest capital.

• IRR recovers as investments appreciate.

Private Fund Lifecycle

Observations:

• The sample fund is fully funded between years eight and nine (PIC)

• Contribution and distribution schedules cause the amount of market value exposure to peak between years five and

six, at approximately 80% of the Commitment amount (RVPI)

• Sample fund returned slightly above 1.8X Commitment (DPI)

0%

40%

80%

120%

160%

200%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

% o

f C

om

mitm

en

ts

Year

Sample Private Fund Cash Flows

Paid In Capital (PIC) Distributed Capital (DPI) Residual Valuation (RVPI)

Performance Measurement

A typical RVK performance report uses both TWR and IRR to calculate manager

performance.

Time Weighted Return (TWR)

• TWR is used for liquid investments

because the fund managers do not control

cash flowing into or out of their funds.

• TWR is the return produced over time by

a fund independent of contributions or

withdrawals.

• TWR eliminates the impact of the timing

of fund cash flows and isolates the portion

of a portfolio’s return that is attributable

solely to the manager actions.

Internal Rate of Return (IRR)

• IRR is used for private fund managers

because they typically exercise control

over the amount and timing of fund cash

flows.

• IRR is the discount rate that equates the

cost of an investment with the cash

generated by that investment.

• IRR accounts for the timing and

magnitude of fund cash flows.

Glossary

Average Annual Fee: Management fees for private market funds may not be consistent through the entire fund

life; some fees will decline as the funds mature. Average annual fee allows for direct fee comparison between

different fund structures.

Buyout Investing: Purchase of a majority portion of ownership to effect change, often with large amounts of

leverage (management, strategic or operational).

Carried Interest: General Partner’s share of the fund’s profits.

Co‐Investment: An investment made by a private equity manager alongside of a sponsor or transaction lead

investor. Co‐investments are typically made by a fund LP or fund of funds investor, and are generally passive in

nature.

Commitment: The pledged amount an LP contracts to give to the fund manager for investment over the life of

the fund.

Commitment Maximum: The largest amount of money a GP may accept, as indicated by the legal agreement

governing the fund.

Current Closed Commitments: Private markets funds will generally have more than one close where investors

can commit capital. Current closed amounts show the manager’s progress to date with fundraising and how close

they are to stated commitment targets.

Direct Investment: An investment made by a general partner directly into a company, loan or property as part of

a portfolio or fund. This differs from a fund investment, where capital is committed to another limited partnership

structure.

Distressed Debt: Purchase of troubled companies’ debt (high yield, bank loans, trade claims) at a fraction of

face value

Glossary Continued

DPI (Distributions to Paid‐In): Measures total distributions of the fund versus the amount of capital paid in by

investors. Mature fund of funds normally have a DPI between 1.5 and 2.0.

FoF (Fund of Funds): Specialist creates a fund of underlying fund investments, providing most of the benefits of

a discretionary account at a lower capital commitment while gaining administrative advantages.

GP (General Partner): The legal entity responsible for managing a fund’s investments. The GP makes all of the

investment decisions for a Limited Partnership fund and earns the management fee.

Index IRR: Represents the dollar‐weighted returns calculated using the S&P 500 Index (Cap Wtd) assuming an

index investment with the same cash flow timing as the investment to which it is being compared.

Investment Period: The legally defined timeframe in which a fund actively seeks out and invests in new

opportunities, generally defined as around five years for direct funds and three years for fund‐of‐funds.

IRR (Internal Rate of Return): The dollar weighted returns of the fund. IRR is defined the discount rate required

to reduce the net present value of future cash flows to zero.

J‐Curve: The shape and slope of a typical cash flow graph of a private markets fund. Named as such because

private funds typically pay higher amounts of fees relative to invested dollars in the early years of a fund’s life,

resulting in low or negative performance before turning positive.

LP (Limited Partner): Passive investor in a private closed end fund, does not take part in active management of

the fund.

PIC (Paid In Capital): The amount of capital that the LPs have paid into the fund.

Preferred Return: The defined return, typically measured by IRR, which the fund must achieve before the

General Partner can receive its allowed carried interest.

Glossary Continued

Quartile Ranking: Funds are ranked by vintage year based on the Preqin All Regions, Fund of Funds universe.

Prior to 1999 funds are ranked against the Preqin All Regions, All Fund Types universe.

Secondary: An investment that is sold by an existing LP to another investor for an agreed upon secondary price.

Special Situations: Growth capital investments, industry‐specific funds, bankruptcy/turnarounds and mezzanine

financing.

Soft‐Circled Commitments: Commitments the manager anticipates closing on but has not received legal

subscription documents.

Term: Defined length of time for the fund to liquidate any investment interests. Such defined terms are usually

subject to extensions, often requiring approval of either the GP or a portion of the LPs.

TVPI (Total Value to Paid In): Also known as investment multiple, shows the fund’s total value as a multiple of its

cost basis. It is calculated by fund’s total distributions plus the current market valuation divided by Paid In Capital.

Venture Capital: Equity Investments in companies that are still in the process of developing products and

revenue.

Vintage Year: Name given to year of inception for a private equity investment. For funds, this is typically the first

year that the fund calls committed capital.

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.

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