HomeMy WebLinkAboutDocumentation_Regular_Tab 03_12/08/2016 r � � �
With a target annual return of 7% to 8.5% gross of fees, the Allegiance Fund has achieved top-quarti
ODCE performance for the five-year and 10-year periods.
� . � •• � i � . .
9/30/16
20% ;
• Inception to date income
retum is 6.32%
15%
10%
5%
0%
_ °`�
QTR 1 YR 3 YR 5 YR 7 YR 10 YR
_.... . .;
'�A58 Allegiance Fund 1.77% 10.64% 12.85% 13.44% 12.94% 7.43% '
.... , __ , __ ..;
r NFI-ODCE EW i 2.18% 10.62% `: SZ.59% 12.40% 12.27% 5.79% '
_�......._ ._._.b_.,.... _�_.... ; . ....._- __„ --- .__�_.. ;_._.. .._ _____r; __....:
NFI-ODCE VW 2 2.07% 10.08% 12.45% 12.40% 12.42% ' 6.02% '
_ _ _ _ _ _ _ _' _ ;
' The NFI-ODCE Equal-Weight is a fund level equaily-weighted return index and includes property investments at ownership share, cash balances and leverage
reflect each member fund's actual asset ownership positions and financing stretegy).
z The NFI-ODCE Value-Weight is a fund level value-weighted return index and includes property investments at ownership share, cash balances and leverage (i
reFlect each member fund's actual asset ownership positions and financing strategy).
3 Please see the ASB Core Real Estate Composite GIPS compliant presentation located in the Appendix section of this presentation.
IU��� ,....... ASB
I ASB Allegiance Real Estate Fund
s - • �- • . � � .
.. . ,
fdFI-ODCE-EW ALLE�
,
• Strong relative performance during the downturn zoo� 16.15%
demonstrates a modest risk profile. zoo� i6.os��o
2010 16.14%
• Demonstrably provides similar outperformance in zoii � 15.96% �
both up and down markets. zoiz li.o3�ro
2013 �; 13.34% �
• Outperformed the NCREIF Fund Index-ODCE zoi4 12.38%
Equal-Weight in nine of the past ten years. 2ois is.i��io
��� � .
Cumulative Outperformance
# of Years
Annualized Outperformance
►•
2008 -10.37%
2009 -30.65%
��- ��� -
' Please see the ASB Core Real Estate Composite GIPS compliant Cumulative OutperfOrmanCe
presentation located in the Appendix section of this presentation. # Of Years
Annualized Outperformance
f .......
�II�� �� �� j AS B ASB Alle9iance Real Estate Fund
ir � _ - _ W .' _ �. � Y Y ._ �, _ _ � � � _ _
- - 1
und NAV: $5,713,461,284.42 Coilective Fund Unit Value: �1,363.5�
�, •
3 Months 12 Months Inception date for your plan was:
eginn�ng Portfolio Vaiue �360,022 �p June 2016
et Contributions / (Withdrewals) $0 $360,000
ains, Losses, and Income $6,358 $6,380 Fund Retum Since Client Inception
nding Portfolio Value $366,380 $366,380 (annualized if greater than 1 year)
. �.
3 Months YTD i Yr 3 Yrs 5 Yrs
1S6 Allegiance Real Estate Fu�d 1.77% 4.74% 10.64% 12.85% 13.44%
ICREIF Fund Index - ODCE - Equal Weight 3 2.18% 6. 95% 10. 62% 12. 12.40%
ICREIF Fund lndex - ODCE - Value Weight 3 2. 07% 6. 52% 10.08% 12.45% 12.40%
. . •• - .<• I •�� �
Allegiance NFI-ODCE VW �
)ffice 38.4% 37.6% East
ndustrial 17.8% 14.5% Midwest
:esidential 15.9% 24.1% South
:etail 27.8% 19.9% West
and 0.0% 0.3% Note: This anaiysis excludes non e<.
lotel N/A 0.7%
)t her N/A 2.9%
:ash 2.9% 3.0%
lote: Percentages are calculated NET of cash as per NFI-ODCE reporting format
after all fees and costs except investment management fees.
'ast performance is not necessarily indicative of future results. Returns for periods greater than one year are annualized and time-weighted. Returns are before [he deduction of inves
>s of March 31, 2009, [he ASB Allegiance Fund's benchmark for performance is [he NCREIF Fund Index - Open-End Diversified Core Equity (NFI-ODCE). The NFI-ODCE Equal-Weight i�
�turn index and includes property investments at ownership share, cash balances and leverage (i.e. returns reflec[ each member fund's actual asset ownership positions and financing
/eight is a fund level value-weighted return index and includes property investments at ownership share, cash balances and leverage (i.e. returns reflect each member fund's actual a:
nancing sirategy.
�.......
�III' ���Ilj A� g ASB Allegiance Real Estate Fund
� • •
� . ' ' � .
Established over three decades ago, the Aliegiance Fund has grown into a well-diversified core platform, offerin
superior investment performance. The Fund is a member of the NCREIF-ODCE index.
� . • � .
Fund's Gross Assets $6,754 million Inception Date )une, 1984
Net Assets
$5,713 million , Portfolio Size (sf) 11.1 million
_.�. .�..�,�.��� ,;�,�.�:,:__
Leverage 14.1% No. of Investments/Properties 75/161
Cash and Equivalents 2.9% Operating Occupancy 92%
` • • •i• " � � . �
Office 30% - 40%
ALLEGIANCE FUND (%) NFI-ODCE VALUE-1A
Retail 20% - 35%
Land Hotei Other
Residential 15% - 25% p � OffiCe � �o� 2.9%
38.4°!o Land
Irtdustrial 15% - 20% 0.3%
Land 0% - 2%
Retail Retail �'
27.8% 19.9%
Industrial
Residential 17 • 8 P Residential v`{u
15.9% 24.1%
'Percentages may not total to 100% due to rounding. 5ource: NCREIF 9/30/16
�.......
3 ��� r— � - -� AS B ASB Alle9iance Real Estate Fund
� i � ' � . � • � � � • . � . #
The Allegiance Fund focuses investments in primary markets with increasing exposure to stronger performing
coastal cities.
• • � � r ' : • � ,�,�,• • • •• � , -
�■r �
MSA % MSA
New York 18.0 Wasr
D.C.
� � San Francisco 15.4 Los �
Pacif�ic WestCentrai ortheast Boston 14.6 Minn�
29.9 /0 7.3%
32. Dailas 9.1 Chic�
Mountain � East Centrai
5.0% 5.5% 3@ � ' .
Mideast
8 6 % Northeast
� Pacific
�:���:.����.�-=�=�:
Southeast
so�tnwest �.6°io Mideast
9.6% Mountain - -
East Central
Southwest
West Central
�Denotes target markets
Southeast
`Percentages may not total to 100% due to rounding.
As of 9-30-16
���� AS B ASB Ailegiance Real Estate Fund
� ' • � ' �
• Target leverage range of 15-25% and a portfolio level limitation of 40%
• Utilize leverage to improve performance without incurring undue risk by:
— Avoiding recourse obligations r � ; r �:+
b � �, �,., ,�m � „ �
— Staggering debt maturities ���
— Limiting loan proceeds at the property level to 50%-60% �350
• l.ine of Credit secured by a subset of properties
— $485 million non-recourse $300 __. ____. ___.... __ ___
— Libor + 150bp interest rate, matures 2017 $246
— 65% max LN $250 ,__ __ _
— Meet short-term liquidity needs, manage cash flow with more
flexibilitY � $200 ___
0
— Optimize returns through prudent cash management = $149 $146
� $150 , __
• Conservative approach to borrowing benefitted the Fund during the
downturn:
— Zero foreclosed assets
$100 ':
$S1
— Zero financial defaults �
— Zero renegotiated covenants � �23
$6
• Relevant statistics* $� _• ; . "�.' _, .__ ,...
2016 2017 2018 2019 2020 2021 �
— Total Principal: $972 miilion
— Average Duration: 5.4 years
— Average Cost: 3.77%
- 90% Fixed-rate
j.. .. ,
3111' ��� j ,n�s g ASB Allegiance Real Estate Fund *Line of credit baiance is excluded from debt statistics.
Tequesta
June 30 2016 . 3 889 180
� $ , . September 30, 2016
Cash Equivalents Cash Fquivalents
�"
;'��
£'
�ba� Fixed Income lobal Fixed Income -
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K
.t��
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::f�-'-a� ._.. . ._ . .i. . .. _ — �
' �-�.. { . .. ..
. ..._ �� ...�._ . ..�. - . ��.
- .. , . ' '.}!t!11CSLr. F.(�IIICy .
i
. DomestiaPixed Income
Oomestic Fixed income
:.. . . i�� t-;.
,''�� � � " � .
Intemation�l Equity
Internatfonal Equiry
��;�
Ailocation Allocation
Market Value Allocation Market Value
■ Domestic Equity 1,762,618 45.3 ■ Domestic Equity 1,953,032
International Equiry 535,966 13.8 International Equity 615,394
■ Domestic Fixed Income 994,164 25.6 ■ Domestic Fixed Income 836,804
Global Fixed Income 183,142 4.7 Globai Fixed Income 197,483
■ Total Real Estate 360,000 9.3 ■ Total Real Estate 366,380
■ Cash Eq 53,290 1.4 ■ Cash Equivalents 43,312
Page 10
Tequesta
QTR FYTD 1 YR 3 YR 4 YR 5 YI
Total Pund 2.16 (91) 6.06 {96) 6.06 (96) 5.90 (67) 7.42 (68) 9.62
T��;al Fund Policy � 49 �36) 1 t28 (9) 11,2c� t9i F 99 �16) 3.03 (34) 9.96
All Public Plans-Total Fund Median 3.18 9.43 9.43 6.21 7.73 9.71
Total Fund (Net) 2.06 5.62 5.62 5.43 6.91 9.10
Total Fund Policy 3.41 1128 11.28 6.99 8.03 9.96
Total Equity 3.2$ 7.81 7.81 7.91 11.09 14.50
T�tal E��i ii Pc�li<;.y � 57 1�1 15 1-1 15 i i�� 11 lr 1$ 27
Domestic Equiry 1.80 (85) 7.61 (92) 7.61 (92) 9.41 (75) 12.36 (66) 15.91
S8P 500 Index 3.85 (55) 15.43 (19) 15.43 (19) 11.16 (38) 13.15 (47) 16.37
IM U.S. Larye Cap Core Equity (SA+CF) Median 4.10 13.03 13.03 10.72 13.01 16.23
International Equity 8.23 (5) 8.52 (17) 8.52 (17) 2.79 (4) 6.46 (8) 8.85
MSCI AC Wor�d ex. USA 7.00 (26) 9 80 (12) 9.30 {12� 0-04 (23) 4.49 (51j 6.52
IM International Large Cap Core Equity (MF) Median 6.04 5.46 5.46 -0.72 4.50 6.59
Total Fixed Income ti � ��, ��� .��'� 0,2'# 3.80 3.80 2.88 2.21 ���:� 3.1'1
Tc�tai F�xed Pol�c�y 0 70 5-05 5.05 3.35 2 36 2.75
Domestic Fixed i�come 0.34 (55) 4.02 (41) 4.02 (41) 3.44 (27) 2.62 (23) 3.45
Domestic Fixed Income Policy 0.31 (57i 3.57 (71 i 3 5i (71 j 3-09 (54) 2 12 (66j 2 57
IM U S. Intermediate Duration (SA+CF) Median 0.38 3.F39 3.f39 3.12 225 2.86
Global Fixed Income -0.34 (100) 2.68 (95) 2.68 (95) N/A N/A N!A
Global Fixed Incoi7ie Index 3.�8 {6) 14.46 (1) 14.46 (1) 4.86 (5) 321 (15) 5.32
' IM Global Fixed Income (MF) Median 1.48 7.09 7.09 2.34 1.34 2.59
Total Reai Estate 1.77 (79) N1A N/A N/A N/A NfA
NCREIF Fund Index-Open End Diversified Core (EW) 2.13 1-�8) 10.57 �74) 10 57 �74) 12 54 (61) 125Z (68) 12.37
IM U S. Open End Private Real Estate (SA+CF) 2 U9 11.14 11 14 12 89 1:; 01 12 79
Retums for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equiry contains intemational prior to 7/t/2009.
Page 18
Tequesta
QTR FYTD 1 YR 3 YR 4 YR 5 YI
Domestic Equity Strategies
Dana Large Cap Core 1.80 (85) 7.61 (92) 7.61 (92) 9.41 (75) 12.36 (66) 15.91
S�P 5GU Index :5.85 �55) 1543 1191 15 �13 �19) 11 16 (38) 13 �5 (47) 16.37
it�1 U S L��rg� Cap Core Equity �S�+CF'i Me�lian 4 10 13 U3 13 G3 iU 72 13 Oi 16,23
International Equiry Strategies
EuroPacific Growth Fund R6 (RERGX) 8.23 (5) 8.52 (17) 8.52 (17) N/A N/A N/A
MSCI AC World ex USA 7.00 f26) 9 80 (12) 9.80 (12) 0 6d (23j 4 49 (51 � 6.52
IP✓1 International L�irye Cap Core Equ�ty (MF) Median F 04 5 46 5 46 -0 72 4 50 6 59
Domestic Fixer! Income Strategies
Dana Intermediate Fixed Income 0.34 (55) 3.61 (71) 3.61 (Ti) 3.30 (37) 2.52 (26) 3.36
Dornestic Fixeci Income Policy 0-31 (�i7j 3.51 (71) 3 57 �71 j 3 09 (54) 2 12 (66) 257
IM U.S. Intermediate Duration �SA+CF) Median 0.38 3 89 3.89 3.12 225 2.86
Giobal Fixed income 5trategies
Templeton Global Total Return R6 (FTTRX) -0.34 (100) 2.68 (95) 2.68 (95) N/A N/A N/A
GlobalFixedlncomelndex 308 (6J 14_46 (1� 14.46 (1) 4.86 f5) 321 (15) 5.32
1��.1 Glu�al F�:xed incoma �MFj ti9i�:fian 1.48 7 O:i 7.09 :?_3� 1 �4 2.59
Real Estate Strategies
ASB Real Estate 1.77 (79) N/A N/A N/A N/A N/A
NCREIF Fund Index-0pen End Diversified Core (EW) 2 13 (�18) 10 57 �741 10 57 (74) t?.54 (611 12 52 (68) 12.37
1��1 U S O(ii�n [n�l Private Re�l EstatP, (SAiCF) 209 11 1.1 11 14 12 B9 13.U1 12 79
Retums for periods greater than one year are annualized. Retums are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contams intemational prior to 7/1/2009.
Page 19
TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND
Summary of Actions for Quarter ending 03/31/16
Presented December 8, 2016
1. The regular Board meeting was held on November 7, 2016.
2. Bogdahn (by Tyler Grumbles) reviewed the 09/30/16 quarterly and fiscal year
returns for the fund. At the end of the quarter, the Plan's market value was
$4,012,405 and the asset allocation was Domestic Equity 48.7%, International
Equity 15.3%, Domestic Fixed Income 20.9%, Global Fixed Income 4.9%, Real
Estate 9.1 %, and Cash Equivalent 1.1 %. The returns for the quarter were:
Quarter Returns:
Total Fund (Gross) 2.16% versus the benchmark at 3.41 %.
Total Domestic Equity 1.80% versus the benchmark at 3.85%
Total International Equity 8.23% versus the benchmark at 7.00%
Total Domestic Fixed Income was 0.34% versus the benchmark at 0.31 %
Total Global Fixed Income was -0.34% versus the benchmark at 3.08%
Total Real Estate 1.77% versus the benchmark at 2.13%
Fiscal Year:
Total Fund (Gross) 6.06% versus the benchmark at 11.28%.
Total Domestic Equity 7.81 % versus the benchmark at 15.43%
Total International Equity 8.52% versus the benchmark at 9.80%
Total Domestic Fixed Income was 4.02% versus the benchmark at 3.57%
Total Global Fixed Income was 2.68% versus the benchmark at 14.46°/o
3. The Board received a report from ASB Real Estate by Clyde Robinson and
Georgette Baker. ASB reviewed in detail the portfolio characteristics. See attached
summary of the portfolio. Also attached is a peer group distribution of the returns
of real estate returns in the Bogdahn universe.
4. The Board received a report from Dana Investment Advisors presented by Greg
Peters. The Board and Dana discussed Dana's under performance. The issue was
the narrow market that was not driven by fundamentals.
5. As a follow up to the Dana performance questions, the Board discussed adding an
index component to the domestic stock portfolio with Tyler Grumbles. After due
deliberation and discussion, the Board determined to move 50% of the domestic
equity portfolio to the Vanguard Russell 3000 Total Stock Market Index - 25% within
the next 10 days and a follow up 25% to move within 45 days from then.
6. The Board discussed the upcoming FPPTA conference.
7. The Board discussed the 2017 Meeting Schedule.
00078931.WPD Page 1 of 2
TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND
Summary of Actions for Quarter ending 09/30/16
8. The next meeting is scheduled for February, 2017.
PLEASE ADDRESS ANY QUESTIONS IN WRITING AND THE BOARD WILL RESPOND
IN KIND.
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