Opening Remarks and Introduction UWF Foundation, Inc. Board of Directors Meeting Applied Science & Technology Bldg. 70, Room #115 December 4, 2019 3:30 – 5:00 p.m.
Agenda
Opening Remark/ Introduction Gail Dorsey, BOD Chair Call to Order / Agenda
Roll Call / Quorum / Approval of Minutes* John Gormley, BOD Secretary
Information Reports
University Update Martha Saunders, UWF President
Advancement Report Howard Reddy, VP for Advancement
Career Development & Community Engagement: Lauren Loeffler, Executive Director CDCE Partnership opportunities for the Foundation Board
Student Presentation Sam Brown, UWF Co-Op Student - Toyota
Alumni Report Eric Brammer, Alumni Assoc. President
CFO’s Report Daniel Lucas, Chief Financial Officer
Committee/Officers Reports Executive Committee Gail Dorsey, BOD Chair Actions of the Executive Committee*
Investment Committee James Hosman, Vice Chair Investment Cmte Quarterly Performance Report Earnings and Expenses Comparison Other Investment Assets Actions of the Investment Committee*
Audit Budget Committee David Hightower, BOD Treasurer Actions of the Audit Budget Committee* Budget to Actual Reports Housing & Foundation Statement of Functional Expenses Unspent Budget Report Review of Internal Controls and Fraud Responsibilities Grant Committee Tim Haag, Chair Grant Committee Actions of the Grant Committee Nominating Committee Gordon Sprague, BOD Immediate Past Chair Will meet March 5, 20
Other Business 20 Gail Dorsey, BOD Chair
Closing Remarks from Chair Gail Dorsey, BOD Chair Adjourn
*Indicates possible action item for the Board. UWF FOUNDATION, INC. BOARD OF DIRECTORS MEETING Pensacola Main Campus Building 70 Classroom September 18, 2019 @ 3:30 p.m. – 5:00 p.m.
DRAFT Present Members: Chair Gail Dorsey, Rich Byars, Jamie Calvert, Dave Cleveland, Jason Crawford, DeeDee Davis, Megan Fry, John Gormley, Tim Haag, Chad Henderson, James Hosman, Amber McClure, David Peaden, Bill Rone, Martha Saunders, Gordon Sprague, Rodney Sutton, Bruce Vredenburg, Todd Zaborski, Dr. Matthew Crow (Interim Faculty Senate V.P.) and Joining via conference call: Connie Bookman, Eric Brammer, David Hightower, Trip Maygarden and John Peacock.
Staff: Howard Reddy, Daniel Lucas, E. Jan Butts, Claire Stewart, Lisa Mrahi, Geri Battist, Missy Grace, Brett Berg, Tori Bennett, Candice Lane, Gina Sharp, Marisa Elmore and Teresa Burgess.
Guests: Dr. Brandon Frye, Neil McMillion, Dr. Ed Ranelli, Marissa Agerton (student presenter), Margaret Stopp, Diane Martinez, Allison Jones, Molly Murphy, Foundation Student Fellows Hunter McCabe and Suzanna Daughtry.
Call to Order: Chair Gail Dorsey called the meeting to order at 3:31 p.m. and thanked everyone for attending.
Roll Call and Approval of the Minutes: Staff verified that a quorum had been established. The Board reviewed the minutes of the meeting held on June 17, 2019. Gordon Sprague made a motion to approve the minutes as submitted. Bill Rone seconded the motion with all members voting in favor.
Opening Remarks: Gail Dorsey introduced the new Board members and Foundation Student Fellows that were present. All members briefly introduced themselves.
Information Reports:
University Update: President Saunders presented the University update which included some of the following highlights: UWF was recently recognized by U.S. News and World Report for earning four badges of distinction and was also named a 2019 Great College to Work For from the Chronicle of Higher Education (for the seventh time). The University now has nine National Merit Scholars. Former President Dr. Judy Bense will be named to the Florida Women’s Hall of Fame next month. Bense is the first from the Panhandle to receive this distinction. Dr. Kristen “Brent” Venable was recently hired as Director of the new Ph.D program in Intelligent Systems and Robotics. The first class in this program has officially launched. Some other recent high points for the University include: the launch of the new Guardian App for student safety; the Argo Tots Program which engages UWF Engineering students to modify kiddie cars for children with disabilities; the Small Business Development Center (SBDC) was named 2019 Florida SBDC Region of the Year. Dr. Saunders reported that a recent football economic impact survey revealed that UWF Football has had a 9.7-million-dollar impact in Escambia County and has created approximately 94 jobs. The 1st Amendment Lecture Series was held last week; guest speaker Carl
Page 1 of 5
UWF Foundation, Inc. Board of Directors Meeting Minutes September 19, 2019
Hiaasen’s lecture was well received. In conclusion, the new Lab Sciences Annex will have a ribbon cutting ceremony tomorrow - there is much enthusiasm across the campus community over this new facility.
Advancement Report: Howard Reddy discussed several University Advancement highlights and began with a summary of FY19. Gifts received as of 06/30/19 totaled $8,362,214, which was $3.86 million over goal. There were 62 Major Gifts ($10,000 and up), and 449 donors gave at the Nautilus Level ($1000). The new fiscal year is off to a strong start and to date $1,280,984 in Cash, New Pledges and Planned Gifts have been received. Among the new major gifts are the $500,000 Linda B. Cassaly Charitable Lead Annuity Trust, The O’Kelley Hemminghaus Foundation Chemistry Endowed Scholarship in the amount of $200,000, and the Harriet L. Rosasco CRUT in the amount of $109,773. The target goal for 2019-20 is $4.7 million. Howard reviewed the KPI reports and noted that eight Foundation Board members have made gifts this year. There’s big news in that the Alumni Association Board has just reached 100% of its giving goal. There will be a lot of extra effort this year to get Alumni participation up to 5%. This year’s Day of Giving and other events will focus on Alumni. The UWF Historic Trust/WUWF has reached 72% of their major gifts goal to date. Capital Campaign planning is underway and the four major gift officers will be compiling a list of top prospects to focus on between now and December. He added that audit season in the Foundation is wrapping up – kudos to Dan Lucas and the Foundation Team for all the extra work with the auditors. Howard concluded by thanking the Board for their advocacy and asked that members continue to seek out new leads and opportunities for growth within the community.
Review of Audited Financial Statements: Auditors Molly Murphy, Diane Martinez and Allison Jones of Saltmarsh, Cleaveland & Gund were present. The change in reporting structure this year (from FASB to GASB) required additional time, but the draft is now complete. Another change is that the Foundation now falls under the Florida State Single Audit, which is a different level of audit. There were no findings or compliance items to report and a clean opinion was issued. A high-level overview of several parts of the report were discussed. Although the report is a draft, the Auditors do not expect any further changes to come about.
Student Presentation: Grant Committee Chair Tim Haag briefly described the function of that committee and how it evaluates travel grant application packages and awards students with scholarships. These scholarships are funded by the Foundation and go towards covering various study abroad programs. Tim then introduced Art/Anthropology student Marissa Agerton. Marissa is a recent grant recipient who spent four weeks last summer in the “Irish Experience” program. She believes that a trip like this would not have been possible at this point in her life had it not been for the scholarship. Marissa added that this was not only her first time travelling abroad, but her first time on an airplane. Some highlights from her time in Ireland included taking two classes: Oil Painting and Print Making (both new mediums for her), and visiting monastic sites, castles, and national parks all across the country. She is truly appreciative for this amazing opportunity, and it has made a lasting impression on her.
Page 2 of 5
UWF Foundation, Inc. Board of Directors Meeting Minutes September 19, 2019
Sunshine Notice Review: Foundation Attorney Margaret Stopp was present to review the Florida Sunshine Public Records Laws for the benefit of new members, as well as to provide a refresher for all present. Some highlights include: all open public meetings must be noticed in advance; notes and minutes must be taken and available for review; and private discussions regarding possible voting items cannot take place among board members. On the topic of quorum: physical presence is required at meetings and calling in does not count towards quorum requirements.
Alumni Report: New Alumni Board President Eric Brammer reported that 100% of board members have already made a gift this year. He’s very happy to serve in this capacity and looks forward to encouraging alumni engagement and participation in all upcoming events. Eric thanked Alumni Relations Director Missy Grace and past President Brett Barrow for their accomplishments and for laying the foundation for success. Upcoming events include an Alumni booth at Gallery Night this Friday, Tailgates at home football games, and a new Homecoming event called the Welcome Home Block Party. This will take place on Museum Plaza on 10/04/19 from 5:00 – 8:00 p.m. Eric thanked the Board for its support of alumni events and efforts.
CFO’s Report: Dan Lucas began the CFO report by introducing Hunter McCabe and Suzanna Daughtry; both are participating in the Foundation Student Fellow Program this year. This program will allow Hunter and Suzanna to gain hands on experience to add to their professional portfolios by working with the Investment Committee and the opportunity to attend Foundation Board meetings and extra events. Dan reiterated that the audit season is wrapping up. In addition to the Foundation’s full financial statement audit, a License Fee audit and a Major Gift audit have also taken place. The University also went through an operational audit. Dan went on to introduce the Foundation staff members that were in attendance: Director E. Jan Butts, and Accountants Candice Lane, Marisa Elmore, and Gina Sharp. Dan reported that the Moody’s rating review went well; he then turned it over to Neil McMillion of Housing. Neil reported that Housing is at 101% of goal with 1436 beds filled. They are already starting to work on next year’s marketing to ensure continued success. Neil was happy to report that with the revenue being generated, money will be put towards reserves in the future. Dan thanked Housing, Financial Aid and Enrollment for the team effort that made this possible. This concluded the CFO report.
Reports of Board Officers & Committees:
Executive Committee: Gail Dorsey presented the slate of officers for 2019-20 fiscal year: Chair Gail Dorsey, Vice Chair Jason Crawford, Secretary John Gormley, Treasurer David Hightower, Immediate Past Chair Gordon Sprague. She put forth the motion to vote on the officer list; James Hosman voted in favor and Tim Haag seconded the motion. The motion carried with all voting in favor. Gail encouraged all members to stay as involved with UWF events as possible, and this concluded her report.
Page 3 of 5
UWF Foundation, Inc. Board of Directors Meeting Minutes September 19, 2019
Investment Committee: Jason Crawford began by reporting on the investment pool performance. The portfolio value at the end of the quarter was 93.6 million, with 3.5% growth for the quarter, achieving the CPI + 4 benchmark. Jason recognized Rodney Sutton and Chad Henderson as new members to the committee. Outside advisor Atlanta Consulting Group has continued to perform well for the past fifteen years. They are nearing the end of the current 5- year engagement and the review process will begin again next fiscal year. Jason briefly discussed the most recent Investment Manager Breakfast with Conestoga & Eagle Capital as guest speakers. This was another successful event, well attended by community members and business leaders. He looks forward to continuing this event in the coming fiscal year. At the last Investment committee meeting, the decision to remove Dodge and Cox from cautionary status was made. Jason stated that he is serving on the COB Dean search committee. He encouraged fellow board members to attend any open sessions if possible, to see the candidates and provide feedback. This concluded Jason’s report.
Audit/Budget Committee: David Hightower stated that Neil’s presentation on Housing combined with the highlights provided earlier by the Saltmarsh Auditors addressed the news and happenings for this committee. Dan Lucas added that the variances for the Budget to Actuals for both the Housing financials and the Foundation financials were all in line. Dan asked for the Board to approve the draft audit as presented – subject to any material changes due to timing of the alternative investment’s confirmations of value. If any material value changes arise, Dan will bring the report back to the Board. Todd Zaborski made the motion to vote in favor of approving the Audit, Bill Rone seconded the motion and the motion carried with all voting in favor.
Grant Committee: Tim Haag stated that he was happy to step into the role of Chair for the coming fiscal year. The first meeting for the year will be held on November 14, 2019, and he is looking forward to working with the committee again.
Nominating Committee: Gordon Sprague presented a proposed timeline for selecting two new board members (presidential appointments) for the next fiscal year, as both he and David Hightower prepare to roll off. He asks that members begin submitting letters of introduction/interest now to Howard, with a cutoff date of February 1, 2020. The ranking of the nominees will take place at the March 5, 2020 committee meetings. He hopes to establish a pool of candidates to fill any future openings that may occur and has asked President Saunders to assist in getting the word out via various social media announcements.
Other Business: Gail Dorsey reminded all members to complete and turn in their annual Conflict of Interest forms before leaving and to utilize the Contact Info Change form if any changes are necessary. Gail asked that all the Directors continue to advocate for UWF and to remember to make their Nautilus Level Gifts. She then shared a “fun fact” that the poem by Oliver Wendell Holmes titled “The Chambered Nautilus” was the inspiration for the nautilus shell’s significance
Page 4 of 5
UWF Foundation, Inc. Board of Directors Meeting Minutes September 19, 2019
on the UWF campus. In short, it represents growth and progress which correlates to student, faculty, and staff success and growth.
Adjournment: Chair Dorsey thanked the Board members for their participation in the meeting. There being no further business, the meeting was adjourned at 5:14 pm.
Minutes recorded by Lisa Mrahi on September 19, 2019.
Page 5 of 5
Executive Committee Reports
UWF FOUNDATION, INC. EXECUTIVE COMMITTEE MEETING Global Online Training Room November 21, 2019, 3:30 p.m. – 5:00 p.m.
Present: Members: Chair Gail Dorsey, David Hightower, Dave Cleveland, Dr. Martha Saunders.
Staff: Howard Reddy, Dan Lucas, E. Jan Butts, Candice Lane, Lisa Mrahi.
Call to Order: Chair Dorsey called the meeting to order at 3:30 p.m. Staff confirmed attendance and that a quorum was present.
Minutes: The committee members reviewed the minutes of the meeting held on August 29, 2019. David Hightower made a motion to accept the minutes as presented. Dave Cleveland seconded the motion, and the motion carried with all voting in favor.
University Update: President Saunders provided a University update which included the following highlights: Mort O’Sullivan will be the guest speaker at Commencement on December 14, 2019 and also be awarded the Presidential Medal of Honor. UWF is currently interviewing candidates for the master plan and obtaining estimates for fieldhouse renovations. In legislative news, we are seeking funds for cybersecurity, fieldhouse renovations as well as an operational budget increase. Dr. Saunders was recently invited to a summit and to participate in the Miami Panel of Influencers, which was a successful gathering of educational professionals from across the state.
Advancement Report: Howard Reddy discussed several University Advancement highlights, and stated that fiscal year-to-date total gifts received is $8,468,994 which includes Cash Gifts, New Pledges and Planned Gifts. We have received an anonymous gift of $6 million dollars. Another anonymous $347,000 gift was made to the First-Generation Scholarship Fund. An in-kind gift sculpture valued at $160,000 was donated to The Historic Trust/PMA by Hal Holder. Other major gifts include: $128,000 from Pen Air Federal Credit Union and $115,209 from Consumer Credit Counseling Service of West FL. As mentioned at the Donor Dinner, the recent passing of Valmae Besser led to a gift to the University worth approximately $2 million dollars. To date, 12 Foundation Board members have made gifts - this remains an important goal that remains front and center. There is also a focus on Alumni participation.
CFO Report: Daniel Lucas reported that there were no changes to the financial statement audit report that was approved at the last board meeting, everything has now been finalized. It is 990 tax season and Jan Butts is preparing the IRS forms and returns. Housing is currently at 101% occupancy. UWF is close to finalizing the arrangements for new cable and internet service. The recent Donor Recognition Dinner was the largest dinner yet and a huge success. Dan added that the aforementioned Val Besser gift also contained real estate and other tangible property which will go through probate to be settled.
Page 1 of 2
Committee Reports:
Investment Committee: Dave Cleveland stated that the portfolio value at the close of the quarter was $92,974,297. Most of our funds this quarter out-performed their benchmarks and the year- to-date total return is just under 12%. The committee discussed recommendations made by Rod Hennek of Atlanta Consulting Group (ACG) and voted to approve the following action items:
• Continuing to invest in the Private Sector (Private equity, debt and real estate) with an additional $4 million dollars to Portfolio Advisors Secondary Fund VI. Moving closer towards the target of 20% of the portfolio. • Liquidate 50% of Ironwood holdings and invest those funds in the Canyon Balanced Fund and Conway Renaissance Institutional Equities Fund (split equally). • A vote was cast to maintain the 4% spending allocation rate.
Audit/Budget Committee: David Hightower stated that Housing is doing a great job and acknowledged the positive variance in revenues. Occupancy should continue to trend upward.
Other business: Gail stated that the Donor Recognition Dinner was very successful and well attended, and that the student videos were impactful. She encouraged members to make their annual donations and attend as many of the upcoming events as possible including the annual Holiday Fest scheduled for December 12th on the Museum Plaza.
Adjournment: There being no further business, the meeting was adjourned at 4:03 p.m.
Minutes recorded by Lisa Mrahi on November 21, 2019
Page 2 of 2
Investment Committee Reports
1
University of West Florida Foundation Third Quarter 2019
Atlanta Consulting Group | 309 East Paces Ferry Road, Suite 600 | Atlanta, GA 30305 P 404.240.6747 | T 888.317.2810 | F 470.823.3178 theatlantaconsultinggroup.com
1 Table of Contents ______
SECTION 1 University of West Florida Foundation
SECTION 2 University of West Florida Planned Giving
SECTION 3 Private Markets Allocation and Recommendation
SECTION 4 Hedge Fund Recommendation
SECTION 5 Performance Update – October 2019
2
ACG Market Review Third Quarter 2019
Global Highlights:
x Economy – Evidence of a global slowdown intensifies as economic data weakens amid headwinds from tariffs and uncertainty.
x Equities – Domestic equities displayed resilience through an onslaught of negative news while overseas markets experienced a larger impact from increased rhetoric surrounding trade war.
x Fixed Income – Yields across the globe continued to fall at the Federal Reserve and other central banks shifted to a more accommodative policy stance in response to the potential damage from trade wars.
309 East Paces Ferry Road, Suite 600 | Atlanta, GA 30305 | T 888.317.2810 | F 470.823.3178 | theatlantaconsultinggroup.com 3 ACG Market Review Third Quarter 2019
Is the U.S. Economy in Limbo?
Amid crumbling trade negotiations, increasing rhetoric, and Despite growing concerns of earnings strength and the fears of escalating tariffs between the U.S. and China, the U.S. escalating negative effect of trade tension on the U.S. Economic Policy Uncertainty Index spiked to a multi-year high manufacturing sector, the consumer and consumption levels during the third quarter as signs of slowing economic growth remain robust. intensified. Coordinated drone attacks on oil facilities in Saudi Arabia U.S. GDP for Q2 2019 was reported at +2.0%, matching the temporarily took 6% of global oil supply offline during second lowest level recorded over the trailing 12 quarters. September. During the first trading day after the attack, Oil, as According to the September report from the Institute of Supply measured by West Texas Intermediate (WTI) crude oil prices, Management (ISM), the overall economy grew for the 125th jumped to $62.90 from its previous close of $54.85. Since then, consecutive month but the U.S. manufacturing sector the price of oil has steadily declined and ended the third contracted for the second month in a row. Prior to August’s quarter at $56.49, roughly $2 less than where the price of oil Purchasing Managers Index (PMI) reading of 49.1, the U.S. began at the end of the second quarter. manufacturing sector experienced 35 months of consecutive expansion. A PMI reading below 50 indicates a ĐŽŶƚƌĂĐƚŝŽŶĂƌLJ environment. The “Upside Down”
Analysts’ estimate a year-over-year earnings decline for the S&P 500 at -3.7% for the third quarter compared to a 5-year Yields across the globe continued to fall as the Federal Reserve average growth rate of +7.3%. Despite an estimated earnings and other central banks around the world shifted to a more decline for Q3 2019, the 2019 calendar year earnings have a accommodative policy stance in response to the potential projected growth rate of +1.3% followed by double digit damage from trade wars. As of the end of the third quarter, the (+10.5%) earnings growth in 2020.The Q3 2019 year-over-year total amount of negative yielding sovereign debt surpassed $16 projected revenue growth rate is estimated at +2.8%, well trillion while over 50% of total outstanding global government below the 5-year average revenue growth rate of +3.5% and debt is yielding less than 1%! In the recent “ACG Insights: Even would be the lowest level recorded in three years. Lower Rates” we go into further detail surrounding the anemic bond yields seen across the globe, a brief history of low/negative interest rate policy and how we got to this point.
For institutional client use only – not for distribution 4 ACG Market Review Third Quarter 2019
During the July FOMC meeting, the Federal Reserve lowered on Saudi Arabian oil facilities, to increasing signs of slowing the Federal Funds target rate by 25 basis points, an expected economic growth, crumbling trade negotiations and even a move, but the first rate cut since the Global Financial Crisis in presidential impeachment inquiry, U.S. markets somehow 2008. The Fed cut the Federal Funds rate by another 25 bps at withstood an onslaught of negative news to end the third the September FOMC meeting due to lingering concerns over quarter on a positive note. The S&P 500 posted a third quarter the impact of tariffs and slowing global growth on the U.S. gain of +1.70%, bringing year-to-date returns to +20.55%. economy. The second week of September saw the largest weekly relative During the third quarter, the 10-year Treasury and 2-year outperformance of value stocks vs. growth stocks since August Treasury yields inverted for the first time since before the 2009. As a result, defensive sectors led the way during the third Global Financial Crisis. The inversion was temporary as the 10- quarter as yield hungry investors pushed up the prices of year Treasury yield ended the quarter at 1.68%, 5 basis points Utilities (+9.33%), Real Estate (+7.71%) and Consumer Staples above the 2-year Treasury. While an inversion of 10s/2s has (+6.11%). Energy, on the other hand, was the worst performing historically acted as an early indicator for an upcoming sector losing -6.30%, followed by Healthcare (-2.25%) and recession, many believe that the Fed’s prolonged quantitative Materials (-0.12%). easing policy has undermined the reliability of this warning signal. Small Cap stocks lost -2.40% during the third quarter, bringing year-to-date returns down to +14.18%. Fixed Income posted a strong third quarter as the Bloomberg Barclays Aggregate Bond Index gained +2.27%, pushing year-to- Equity volatility experienced in August was temporary as the date returns up to +8.52%. Government Bond prices around the VIX, a measure of the stock market’s implied volatility, sank to globe posted positive returns as yields fell. The Citigroup World 14 for much of September after surpassing 24 the month prior. Government Bond Index gained 0.85% during the third quarter, bringing year-to-date returns for global bonds up to +6.27%. Overseas Attraction?
Equity Resilience Valuations across Domestic, International and Emerging Markets have increased during 2019. Historically, Developed Almost seemingly daily fluctuations between positive and International stocks have traded at a similar valuation to negative news resulted in an erratic third quarter. From attacks domestic stocks but over the last few years the difference in
For institutional client use only – not for distribution 5 ACG Market Review Third Quarter 2019 forward Price/Earnings Ratios between the two regions has GDP growth of 6.8% seen at the beginning of 2018 to 6.2% widened. On a valuation basis, the MSCI EAFE Index (13.3x) is printed during Q2 2019. As a result, China has allowed the value currently trading at an abnormally large discount compared to of the Yuan to fall in hopes to make their products more the S&P 500 (17.0x). competitive across the globe to counteract the negative effects of U.S. tariffs. While the performance of U.S. equities vs. non-U.S. equities has been cyclical, U.S. markets have outperformed non-U.S. for As a result, Emerging Markets saw the largest decline of all quite some time now. On a rolling three year basis, U.S. stocks major asset classes during the third quarter as the MSCI have outperformed overseas companies for 38 straight Emerging Markets Index lost -4.25%, pulling year-to-date quarters, the longest period observed over the last 50 years. returns down to +5.89% One key reason for the recent outperformance of U.S. stocks has been the difference in sector exposures between the two regions. U.S. markets have benefitted from higher weightings Would a Recession be a Self-Fulfilling Prophecy? to many of the sectors that have been market leaders in the current bull market while international markets have suffered from higher exposure to traditional value sectors which have Historically, the number of news articles mentioning the word lagged. For example, the Information Technology sector “recession” has been closely correlated with an actual represents 21.5% of the S&P 500 while only accounting for 8.1% recession in the real economy. With the growth of social media of the MSCI ACWI ex USA Index. On the other hand, Financials and the internet, Google search activity has been a similar make up 13.1% of the S&P 500 while they represent nearly a barometer more recently. One fear is that all the talk becomes quarter of the MSCI ACWI ex USA Index. a self-fulfilling prophecy and leads us into a recession. JP Morgan even created an index to monitor the impact of Developed international equities, as measured by the MSCI Trump's tweets. Their so called “Volfefe” Index shows that, EAFE Index, ended the quarter down -1.07%, dragging year-to- along with an increase in the number of tweets, these tweets date returns to +12.80%. International small cap, as measured have also had an increasing effect on the underlying volatility by the MSCI EAFE Small Cap lost -0.44% during the third quarter of the markets. dragging year-to-date returns to +12.05%.
While the Chinese economy has slowed over the past decade, recent tariffs and uncertainty of an increased trade war has negatively impacted the nation’s GDP from year-over-year Real
For institutional client use only – not for distribution 6 Market Index Review – September 2019
Major Market Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years International Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years S&P 500 1.87 1.70 20.55 4.25 13.39 10.84 13.24 MSCI EAFE 2.87 -1.07 12.80 -1.34 6.48 3.27 4.90 Russell 2000 2.08 -2.40 14.18 -8.89 8.23 8.19 11.19 MSCI Europe 2.72 -1.80 13.72 -0.75 6.57 2.38 4.61 Russell 3000 1.76 1.16 20.09 2.92 12.83 10.44 13.08 MSCI Pacific 3.14 0.23 11.43 -2.17 6.54 5.11 5.61 MSCI ACWI 2.10 -0.03 16.20 1.38 9.71 6.65 8.35 MSCI EAFE Small Cap 2.81 -0.44 12.05 -5.93 5.94 6.02 7.45 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 6.33 2.90 4.46 MSCI Emerging Markets 1.91 -4.25 5.90 -2.02 5.97 2.33 3.37 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 2.92 3.38 3.75 MSCI Frontier Markets -1.95 -1.09 10.66 5.87 7.02 -1.28 3.61
Russell Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Bond Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Russell 1000 1.73 1.42 20.53 3.87 13.19 10.62 13.23 FTSE T-Bill 3 Months 0.17 0.57 1.79 2.36 1.52 0.96 0.52 Russell 1000 Growth 0.01 1.49 23.30 3.71 16.89 13.39 14.94 BBgBarc US Municipal TR -0.80 1.58 6.75 8.55 3.19 3.66 4.16 Russell 1000 Value 3.57 1.36 17.81 4.00 9.43 7.79 11.46 BBgBarc US Govt/Credit TR -0.76 2.64 9.72 11.32 3.16 3.61 3.94 Russell MidCap 1.97 0.48 21.93 3.19 10.69 9.10 13.07 BBgBarc US Govt/Credit Int TR -0.36 1.37 6.41 8.17 2.40 2.68 3.05 Russell MidCap Growth -1.14 -0.67 25.23 5.20 14.50 11.12 14.08 BBgBarc US Credit 1-3 Yr TR 0.08 0.93 4.20 5.13 2.40 2.11 2.39 Russell MidCap Value 4.06 1.22 19.47 1.60 7.82 7.55 12.29 BBgBarc US Credit Long TR -1.47 5.62 21.92 19.91 6.46 6.90 7.78 Russell 2000 Growth -0.82 -4.17 15.34 -9.63 9.79 9.08 12.25 BBgBarc US Corporate High Yield TR 0.36 1.33 11.41 6.36 6.07 5.37 7.94 Russell 2000 Value 5.13 -0.57 12.82 -8.24 6.54 7.17 10.06 FTSE WGBI -1.30 0.85 6.27 8.13 1.19 1.80 1.69
Sector Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Other Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years S&P 500 Materials 3.16 -0.12 17.11 2.70 9.01 5.37 9.23 HFRI FOF: Diversified Index -0.72 -0.69 5.33 0.48 3.25 1.98 2.76 S&P 500 Consumer Discretionary 0.86 0.51 22.46 2.36 15.82 14.03 17.68 HFRI FOF: Conservative Index -0.03 -0.05 4.60 1.21 3.14 2.05 2.73 S&P 500 Consumer Staples 1.69 6.11 23.28 16.85 7.89 9.26 12.29 HFRI FOF: Strategic Index -0.70 -2.14 5.29 -1.52 3.09 1.86 2.76 S&P 500 Energy 3.77 -6.30 6.00 -19.21 -2.67 -5.06 3.33 HFRI Equity Hedge Index 0.39 -1.10 8.06 -1.12 4.80 3.49 4.45 S&P 500 Financials 4.64 2.01 19.60 3.92 15.46 10.51 10.77 Wilshire Liquid Alternative TR USD 0.14 0.43 5.04 1.13 1.85 0.85 1.92 S&P 500 Health Care -0.17 -2.25 5.64 -3.57 9.64 9.46 14.48 FTSE EPRA/NAREIT Global TR USD 2.39 3.45 19.38 13.66 6.91 7.66 8.97 S&P 500 Industrials 3.02 0.99 22.58 1.39 11.31 9.73 13.43 Alerian MLP TR USD 0.71 -5.02 11.08 -8.13 -2.46 -8.65 6.25 S&P 500 Information Technology 1.51 3.34 31.37 8.60 22.55 18.21 17.11 Bloomberg Commodity Index TR USD 1.17 -1.84 3.13 -6.58 -1.50 -7.18 -4.32 S&P 500 Real Estate 0.95 7.71 29.71 24.74 ------S&P 500 Communication Services 0.42 2.22 21.74 5.69 3.28 5.17 9.49 S&P 500 Utilities 4.26 9.33 25.40 27.10 13.59 12.89 12.51
Source: Morningstar, ACG Returns include dividends; 3-year, 5-year and 10-year returns are annualized. Indices are unmanaged. You cannot invest directly into an index. Past performance is not indicative of future results 7 Q3 2019: Dangers Lurking
Source: Hedgeye, ACG
8 Tariff (and Tweet) Induced Uncertainty
U.S Economic Policy Uncertainty Index*
• Amid increasing rhetoric and fears of escalating tariffs in the ongoing trade negotiations with China, the U.S. Economic Policy Uncertainty Index spiked during the third quarter of 2019
JP Morgan’s “Volfefe” Index**
• JP Morgan even created an index to monitor the impact of Trump's tweets. Their so called “Volfefe” Index shows that, along with an increase in the number of tweets, these tweets have also had an increasing effect on the underlying volatility of the markets
Source: CEIC, Goldman Sachs, JP Morgan, ACG * This index is comprised of three components; volume of news coverage of policy-related economic uncertainty, the number of federal tax code provisions set to expire in future years, and disagreement among economic forecasters 9 ** This index, named after Trump’s famous “covfefe” tweet, analyzed more than 10,000 tweets since inauguration to gauge their impact on market volatility Signs of a Slowdown?
U.S Leading Economic Indicators (LEI) Index*
• The Index of Leading Economic Indicators recently declined. This is the third time that we have seen a decline during this cycle. The index is still above levels that have signaled recession in the past and it remains to be seen which direction the index goes from here
Purchasing Manager Index vs. Bond Yields (Developed Markets)
• As more real-time measures of economic activity, such as the Purchasing Manager’s Index (PMI), have declined, government bond yields have also come down as Central Banks shifted their stance to be more accommodative in an effort to boost growth
Source: U.S. Department of Labor, Thomson Reuters, Markit, ACG * The LEI is a composite of leading economic indicators used by economic participants to predict the direction of economic activity in the near future. 10 The U.S. Yield Curve Inversion Gets Deeper
U.S. Yield Curve (10-Year minus 2-Year Treasury Yields)
“The yield curve reflects investors’ beliefs about economic risks. That said, I believe this time may be different. The yield curve is constantly in the news. The number of internet searches for “yield curve” has spiked, raising the possibility of a self-fulfilling prophesy. That is, the awareness that a yield curve inversion has preceded each of the last seven recessions causes people to change their behavior.”
• As a result of the sharp move down in – Prof. Campbell Harvey. Professor of interest rates in August, the 10-Year vs. 2- Finance at the Fuqua School of Year Treasury inverted for the first time in Business, Duke University and a over a decade. Many strategists point to this Research Associate of the National indicator as a more accurate predictor of Bureau of Economic Research. recession than the 10-Year vs. 3-Month inversion that occurred earlier in 2019
Source: Federal Reserve Bank of St. Louis, Duke / Fuqua School of Business, ACG
11 Can We Learn from Past Recessions?
• Whether the yield curve inversion leads to a recession remains to be seen. Looking at past recessions we can see that it has been particularly tough to see them coming. In fact, over the last five recessions, the actual official announcement of recession did not occur until it was already well underway
Source: Schwab, National Bureau of Economic Research, ACG
12 Low Rates Are A Global Phenomenon
$ Amount of Negative Yielding Debt Global Bond Yield Distribution (Developed Market Sovereign Debt) (Developed Market Sovereign Yields)
• As global central banks cut rates in reaction • Although the spread between U.S. bond to the economic damage from tariff yields and the rest of the world is still wide, uncertainty, the total amount of negative it has narrowed. After the recent fall in U.S. yielding sovereign debt has reached $16 rates, more than 80% of global government trillion debt is now yielding less than 2%
Source: Bank of Montreal (BMO), Blackrock, ACG
13 Valuations & Earnings Expectations
Forward Price/Earnings Ratios
• Valuations across the U.S., Developed International and Emerging markets increased in 2019. MSCI EAFE stocks, which historically trade at a similar valuation or sometimes slight premium to the S&P 500, are currently at an historically large discount
Earnings Growth Forecasts Earnings Growth Forecasts (MSCI ACWI ex USA) (S&P 500)
• Recent earnings forecasts have been fairly similar across these regions. In 2019, earnings across the globe were negatively impacted by fears of tariff induced slowing growth. 2020 earnings forecasts firmed around 10% year- over-year earnings growth with the overseas region even showing slightly increased expectations
Source: Ed Yardeni, Thomson Reuters (Refinitiv), I/B/E/S, ACG
14 Foreign versus Domestic Equities
• The outperformance of U.S. versus non-U.S. equity is the longest such period observed in the last 50 years
ACWI ex – Sectors S&P 500 U.S. • One key reason for recent Financials 23.3 13.1 Industrials 11.5 9.4 outperformance has been the Consumer Discretionary 11.2 10.2 sector makeup of the different Consumer Staples 9.6 7.3 regions. U.S. stocks have a Health Care 8.1 14.2 higher weighting in many of the Technology 8.1 21.5 areas that have been market Materials 7.4 2.8 leaders in the current bull market, Communications 6.8 10.2 while overseas markets have a Energy 6.7 5.0 higher weight to traditional value Real Estate 3.3 3.1 sectors which have lagged Utilities 3.2 3.3 Other 0.7 0.1
Source: MSCI, Standard & Poor’s, ACG
15 Value vs. Growth
S&P 500 Premium vs. Value Stocks Weekly Relative Performance (Forward P/E Ratio, S&P 500 minus Value) (Russell 1000 Value minus Russell 1000 Growth)
• Value has underperformed since the Global • During the week of September 9th,the Financial Crisis in 2008. The broad market markets saw the largest weekly relative now trades at a Price to Earnings Ratio more outperformance of value vs. growth stocks than seven points higher than the Value since August 2009. While many strategists index. The last time the premium was this see possible signs of a change in style high was during the Tech and Telecom bubble leadership, idiosyncratic events such as the of 1999 / 2000 attack on Saudi Arabia and Fed actions boosted Energy and Financials stocks
Source: Bloomberg, Russell Investment Group, Standard & Poor’s, JP Morgan, ACG
16 How is the Tariff Uncertainty Effecting China?
Chinese Real GDP Chinese Exchange Rate (Year-over Year Change) (Value of Chinese Yuan in US. Dollars)
6.8% 6.7%
6.5% 6.4% 6.4%
6.2%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
• The Chinese economy, as measured by their • As a result, the Chinese have allowed their official GDP statistics, has been slowing for currency to fall. Their hope is this will make the last decade. Recently, the tariffs and their products cheaper and more competitive associated uncertainty have also had a small globally, helping to counteract the negative negative impact on their official growth effects of U.S. tariffs numbers
Source: National Bureau of Statistics (China), Bloomberg, ACG
17 Risks: We Talk Ourselves Into Recession
• Historically, the number of Number of News Articles Mentioning “Recession” news articles mentioning the (Thousands of Mentions) word “recession” has been closely correlated with an actual recession in the real economy
Google searches for “Recession” (Indexed to 100 as of peak in 2008)
• With the growth of social media and the internet, Google search activity has been a similar barometer more recently. One fear is that all of the talk becomes a self-fulfilling prophecy and leads us into a recession
Source: The Economist, Federal Reserve Bank of St. Louis, Google Trends, RBC, ACG
18 Appendix: 17 pullbacks of 5% or more since 2009
Source: ACG
19 DISCLOSURE
Investing is subject to a high degree of investment risk, including the possible loss of the entire amount of an investment. You should carefully read and review all information provided by The Atlanta Consulting Group Advisors, LLC (“ACG”), including ACG’s Form ADV, Part 2A brochure and all supplements thereto, before making an investment.
The information contained herein reflects the opinions and projections of the ACG as of the date of publication, which are subject to change without notice at any time subsequent to the date of issue. All information provided is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. You should not treat these materials as advice in relation to legal, taxation, or investment matters.
Various indices, including, but not limited to the S&P 500 Index, the FTSE 3-Month Treasury Bill Index, and the Russell 2000 index (each, an “Index”) are unmanaged indices of securities that are used as general measures of market performance, and their performance is not reflective of the performance of any specific investment. The Index comparisons are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of an account managed by ACG and each Index may not be comparable. There may be significant differences between an account managed by ACG and each Index, including, but not limited to, risk profile, liquidity, volatility and asset comparison. The performance shown for each Index reflects no deduction for client withdrawals, fees or expenses. Accordingly, comparisons against the Index may be of limited use. Investments cannot be made directly into an Index.
Historical returns data has been compiled using data calculated by ACG and third parties (e.g., Morningstar and mutual funds). ACG has not independently verified data provided by third parties and cannot and does not guarantee the accuracy of data calculated by third parties. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. No representations or warranties whatsoever are made by ACG or any other person or entity as to the future profitability of an account or the results of making an investment. Past performance is no guarantee of future results. An investment in an account is subject to a high degree of investment risk, including the possible loss of the entire amount of investment.
Statements herein that reflect projections or expectations of future financial or economic performance of the Fund are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or ACG’s actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Any projections and forward-looking statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the confidential offering document. Actual results for any period may or may not approximate such forward- looking statements. You are advised to consult with your independent tax and business advisors concerning the validity and reasonableness of the factual, accounting and tax assumptions. No representations or warranties whatsoever are made by ACG any other person or entity as to the future profitability of investments recommended by ACG.
This report is based on transaction records, portfolio valuations, and performance supplied by the client, the custodian, the investment manager, and investment databases including Bloomberg and Morningstar. Due to the timeliness of this report performance information may be preliminary and therefore subject to audit. This report is complete and accurate to the best of our knowledge.
20 INDEX DEFINITIONS
Asset class and reference benchmarks:
ASSET CLASS BENCHMARK U.S. Equity S&P 500 TR International Developed Equity MSCI EAFE NR Emerging Market Equity MSCI EM NR U.S. Fixed Income Bloomberg Barclays U.S. Aggregate Bond TR Cash & Cash Alternatives Citi Treasury Bill 3 Mon USD
Alerian MLP: The Alerian MLP Index is the leading gauge of large- and mid-cap energy Master Limited Partnerships (MLPs). The float-adjusted, capitalization- weighted index, which includes 50 prominent companies and captures approximately 75% of available market capitalization, is disseminated real-t ime on a price-return basis (AMZ) and on a total-return basis (AMZX).
Bloomberg Barclay 10-Year U.S. Treasuries: Measures the performance of U.S. Treasury securities that have a remaining maturity of 10 years.
Bloomberg Barclays U.S. Aggregate Index: Represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment- grade fix ed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
Bloomberg Barclays Global Aggregate ex-U.S. Dollar Bond Index : Tracks an international basket of bonds that currently contains 65% government, 14% corporate, 13% agency and 8% mortgage-related bonds.
Bloomberg Barclays High Yield : Covers the universe of fixed-rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countr ies designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC-registered) of issuers in non-EMG countries are included. Original issue zeroes, step-up coupon structures and 144-As are also included.
Bloomberg Barclays U.S. Corporate High Yield : Composed of fixed-rate, publicly issued, non-investment grade debt.
The Dow Jones Industrial Average is an unmanaged index of 30 widely held securities.
Dow Jones U.S. Total Stock Market Index , which comprises all U.S. equity securities with readily available prices.
FTSE 3-Month Treasury-Bill Index : This is an unmanaged index of three-month Treasury bills.
FTSE EPRA/NAREIT Global Real Estate Index : Designed to represent general trends in eligible listed real estate stocks worldwide. Relevant real estate activities are def ined as the ownership, trading and development of income producing real estate.
21 INDEX DEFINITIONS
Gross Domestic Product (GDP) is the annual market value of all goods and services produced domestically by the US.
HFRI Fund of Funds Conservative : FOFs classified as 'Conservative' exhibit one or more of the following characteristics: seeks consistent returns by primarily investing in funds that generally engage in more 'conservative' strategies such as Equity Market Neutral, Fixed Income Arbitrage, and Convertible Arbitrage; exhibits a lower historical annual standard deviation than the HFRI Fund of Funds Composite Index. A fund in the HFRI FOF Conservative Index shows generally consi stent performance regardless of market conditions.
HFRI Fund of Funds Diversified : FOFs classified as 'Diversified' exhibit one or more of the following characteristics: invests in a variety of strategies amo ng multiple managers; historical annual return and/or a standard deviation generally similar to the HFRI Fund of Fund Composite index; demonstrates g enerally close performance and returns distribution correlation to the HFRI Fund of Fund Composite Index. A fund in the HFRI FOF Diversified Index tends to show minim al loss in down markets while achieving superior returns in up markets.
HFRI Fund of Funds Strategic : FOFs classified as 'Strategic' exhibit one or more of the following characteristics: seeks superior returns by primarily inve sting in funds that generally engage in more opportunistic strategies such as Emerging Markets, Sector specific, and Equity Hedge; exhibits a great er dispersion of returns and higher volatility compared to the HFRI Fund of Funds Composite Index. A fund in the HFRI FOF Strategic Index tends to outperform the HFRI Fund of Fund Composite Index in up markets and underperform the index in down markets.
MSCI All Country World Index Ex-U.S Index .: A market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. It includes both developed and emerging markets.
MSCI EAFE Index (Europe, Australasia, Far East): A free-float adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States and Canada. The EAFE consists of the country indices of 21 developed nations.
MSCI EAFE Growth Index : Represents approximately 50% of the free-float adjusted market capitalization of the MSCI EAFE index, and consists of those securities classified by MSCI as most representing the growth style.
MSCI EAFE Small-Cap Index : An unmanaged, market-weighted index of small companies in developed markets, excluding the U.S. and Canada.
MSCI EAFE Value : Represents approximately 50% of the free-float adjusted market capitalization of the MSCI EAFE index, and consists of those s ecurities classified by MSCI as most representing the value style.
MSCI Emerging Markets Index : Designed to measure equity market performance in 25 emerging market indexes. The three largest industries are materials, ener gy and banks.
The NASDAQ Composite Index is an unmanaged index of all stocks traded on the NASDAQ over-the-counter market. Price Earnings Ratio (P/E) is the price of th e stock divided by its earnings per share.
22 INDEX DEFINITIONS
Russell 1000 Index : Measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 90% of the investible U.S. equity market.
Russell 1000 Value Index : Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Russell 1000 Growth Index : Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values .
Russell Mid-Cap Index : Measures the performance of the 800 smallest companies of the Russell 1000 Index, which represent approximately 30% of the to tal market capitalization of the Russell 1000 Index.
Russell Mid-Cap Value Index : Measures the performance of those Russell Mid-cap companies with lower price-to-book ratios and lower forecasted growth value s.
Russell Mid-Cap Growth Index : Measures the performance of those Russell Mid-cap companies with higher price-to-book ratios and higher forecasted growth val ues.
Russell 2000 Index : Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the t otal market capitalization of the Russell 3000 Index.
Russell 2000 Value Index : Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
Russell 2000 Growth Index : Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values .
Russell 3000 Index : Measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approxima tely 98% of the investable U.S. equity market.
Standard & Poor's 500 (S&P 500) : Measures changes in stock market conditions based on the average performance of 500 widely held common stocks. Represents approximately 68% of the investable U.S. equity market.
Wilshire Liquid Alternative Index : The Wilshire Liquid Alternative IndexSM measures the collective performance of the five Wilshire Liquid Alternative strategie s that make up the Wilshire Liquid Alternative Universe. The Wilshire Liquid Alternative Index (WLIQA) is designed to provide a broad measu re of the liquid alternative market by combining the performance of the Wilshire Liquid Alternative Equity Hedge IndexSM (WLIQAEH), Wilshire Liquid Alternative Global Macro Ind exSM (WLIQAGM), Wilshire Liquid Alternative Relative Value IndexSM (WLIQARV), Wilshire Liquid Alternative Multi-Strategy IndexSM (WLIQAMS), and Wilshire Liquid Alternative Event Driven IndexSM (WLIQAED).
23 University of West Florida Foundation Performance Summary Q3 2019
The Foundation started the quarter with a market value of $94,217,664 and ended the quarter with a value of $92,974,297 including a cash outflow of $559,401. For the quarter, the Foundation returned -0.72% versus -0.18% for a balanced index that reflects the underlying asset allocation of the total fund. Underperformance for the quarter was driven by active large cap (Eagle Capital), International Small Cap, and Global Bonds.
Large Cap Equity: Eagle Capital underperformed for the quarter (-1.42% vs. 1.70%) while the Vanguard 500 Index performed in line.
• Recommendation: Put Eagle Capital on Caution as the strategy now lags the index over the trailing 5-year time period
Small Cap Equity: Conestoga underperformed the Russell 2000 Index while Fuller & Thaler outperformed for the quarter. Conestoga returned -3.69% and Fuller & Thaler returned 0.52% while the Russell 2000 returned -2.40%.
International Equity: Both international managers outperformed the MSCI ACWI ex USA for the quarter. Dodge & Cox returned -1.66% and WCM Focused International Growth returned - 0.58% while the MSCI ACWI ex US returned -1.80% during the quarter.
International Small Cap Equity: T. Rowe Price International Small Cap fund underperformed for the quarter returning -2.61% versus -1.19% for the MSCI ACWI ex US Small Cap Index.
Emerging Markets Equity: DFA Emerging Markets outperformed the MSCI Emerging Markets Index for the quarter (-4.18% vs. -4.25%).
Master Limited Partnerships: Tortoise MLP & Pipeline outperformed the Alerian Index for the quarter (-2.91% vs. -5.02%).
Fixed Income: Barrow Hanley slightly underperformed the Barclays Aggregate Index for the quarter (2.18% vs. 2.27%). Templeton Global Bond underperformed the FTSE WGBI Index for the quarter (-3.34% vs. 0.85%). Chartwell Short Duration High Yield strategy outperformed the ICE BofAML US Corp and HY 1-3 yr Index for the quarter (1.20% vs. 1.00%).
Alternatives: Ironwood outperformed the HFRI FOF Conservative index for the quarter (0.41% vs.-0.08%).
24 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Current Current Policy Policy Range Balance Allocation
_ US Stock Large $21,614,927 23.25% 22.50% 20.00% - 30.00% US Stock Small $9,879,147 10.63% 10.00% 7.50% - 15.00% International $13,306,162 14.31% 15.00% 10.00% - 20.00% International Small Stocks $5,935,518 6.38% 7.50% 2.50% - 10.00% International Emerging Stocks $5,304,940 5.71% 5.00% 2.50% - 7.50% Fixed $11,414,976 12.28% 15.00% 10.00% - 25.00% MLP $4,324,310 4.65% 0.00% 0.00% - 10.00% Fund of Funds $9,019,471 9.70% 5.00% 0.00% - 10.00% Real Estate $3,027,175 3.26% 7.50% 0.00% - 15.00% Private Equity $2,743,746 2.95% 7.50% 0.00% - 10.00% Private Debt $1,065,870 1.15% 5.00% 0.00% - 10.00% Cash/Short Term Fixed Income $5,338,057 5.74% 0.00% 0.00% - 10.00% Total $92,974,297 100.00% 100.00%
XXXXX
Summary of Cash Flows Inception Third Quarter Year-To-Date One Year Three Years Five Years Ten Years 3/31/99 _ Beginning Market Value $94,217,664 $83,742,231 $93,128,750 $80,085,709 $71,504,536 $51,298,993 $53,608,325 Net Cash Flow -$559,401 -$861,122 -$1,469,399 -$6,537,730 -$1,922,918 -$9,534,147 -$27,022,655 Net Investment Change -$683,967 $10,093,187 $1,314,945 $19,426,317 $23,392,678 $51,209,450 $66,388,626 Income $247,945 $766,005 $2,283,675 $5,153,882 $8,004,721 $13,011,733 $31,566,883 Ending Market Value $92,974,297 $92,974,297 $92,974,297 $92,974,297 $92,974,297 $92,974,297 $92,974,297 _
Prepared by The Atlanta Consulting Group 25 University of West Florida Foundation As of September 30, 2019 Current Current Within IPS Policy Policy Range Difference Balance Allocation Range?
_ US Stock Large $21,614,927 23.25% 22.50% 20.00% - 30.00% 0.75% Yes Eagle Capital Management $10,541,366 11.34% Vanguard 500 Index Admiral $11,073,561 11.91% US Stock Small $9,879,147 10.63% 10.00% 7.50% - 15.00% 0.63% Yes Conestoga Small Cap Investors $5,078,559 5.46% Fuller & Thaler Behav Sm-Cp Eq Inst $4,800,587 5.16% International $13,306,162 14.31% 15.00% 10.00% - 20.00% -0.69% Yes Dodge & Cox International Stock $6,350,448 6.83% WCM Focused International Growth Instl $6,955,713 7.48% International Small Stocks $5,935,518 6.38% 7.50% 2.50% - 10.00% -1.12% Yes T. Rowe Price International Discovery $5,935,518 6.38% International Emerging Stocks $5,304,940 5.71% 5.00% 2.50% - 7.50% 0.71% Yes DFA Emerging Markets Core Equity I $5,304,940 5.71% Fixed $11,414,976 12.28% 15.00% 10.00% - 25.00% -2.72% Yes Barrow Hanley $5,807,102 6.25% Templeton Global Bond Fund $2,684,415 2.89% Chartwell Short Duration High Yield $2,923,459 3.14% MLP $4,324,310 4.65% 0.00% 0.00% - 10.00% 4.65% Yes Tortoise MLP & Pipeline Instl $4,324,310 4.65% Fund of Funds $9,019,471 9.70% 5.00% 0.00% - 10.00% 4.70% Yes Ironwood International Ltd. $9,019,471 9.70% Real Estate $3,027,175 3.26% 7.50% 0.00% - 15.00% -4.24% Yes Harbert US RE Fund V LP $1,013,846 1.09% Harbert US RE Fund VI LP $1,967,937 2.12% Harbert US RE Fund IV LP $45,391 0.05% Private Equity $2,743,746 2.95% 7.50% 0.00% - 10.00% -4.55% Yes Portfolio Advisors PE Offshore V $263,770 0.28% Portfolio Advisors PE VII $695,922 0.75% Portfolio Advisors Secondary Fund III, L.P. $1,193,806 1.28% StepStone Pioneer Capital III, L.P. $590,248 0.63% Private Debt $1,065,870 1.15% 5.00% 0.00% - 10.00% -3.85% Yes Portfolio Advisors Direct Credit II $665,870 0.72% Golub Capital Partners Intl 12 LP $400,000 0.43% Cash/Short Term Fixed Income $5,338,057 5.74% 0.00% 0.00% - 10.00% 5.74% Yes PIMCO Short-Term Instl $5,301,149 5.70% Cash $36,908 0.04% Total $92,974,297 100.00% 100.00% Outside Cash Reserves $3,077,634 Total with Outside Cash $96,051,931 Prepared by The Atlanta Consulting Group 26 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date
_ Foundation 92,974,297 100.00 1.06 -0.72 11.99 1.41 4.66 7.56 5.42 7.39 5.02 Mar-99 Balanced Index 1.31 -0.18 11.62 1.05 4.16 6.75 5.05 6.99 4.88 Mar-99 CPI+4% 0.41 1.23 5.24 5.77 6.07 6.15 5.58 5.81 6.26 Mar-99 US Stock Large 21,614,927 23.25 1.65 0.15 19.99 3.38 10.59 13.69 10.58 -- 10.54 Dec-13 S&P 500 1.87 1.70 20.55 4.25 10.87 13.39 10.84 13.24 10.89 Dec-13 Eagle Capital Management 10,541,366 11.34 1.43 -1.42 19.42 2.51 10.21 13.95 10.32 -- 13.30 Oct-12 S&P 500 1.87 1.70 20.55 4.25 10.87 13.39 10.84 13.24 13.21 Oct-12 Vanguard 500 Index Admiral 11,073,561 11.91 1.87 1.69 20.54 4.22 10.84 13.35 10.80 -- 13.21 Sep-12 S&P 500 1.87 1.70 20.55 4.25 10.87 13.39 10.84 13.24 13.23 Sep-12 US Stock Small 9,879,147 10.63 1.00 -1.69 18.25 -4.10 7.05 11.54 9.33 -- 6.66 Dec-13 Russell 2000 2.08 -2.40 14.18 -8.89 2.47 8.23 8.19 11.19 6.25 Dec-13 Conestoga Small Cap Investors 5,078,559 5.46 -1.43 -3.69 18.86 -3.57 11.30 17.26 15.74 -- 11.43 Apr-14 Russell 2000 2.08 -2.40 14.18 -8.89 2.47 8.23 8.19 11.19 6.07 Apr-14 Fuller & Thaler Behav Sm-Cp Eq Inst 4,800,587 5.16 3.71 0.52 17.61 -4.65 ------1.97 Mar-18 Russell 2000 2.08 -2.40 14.18 -8.89 2.47 8.23 8.19 11.19 -1.13 Mar-18 International 13,306,162 14.31 1.52 -1.09 17.62 0.82 -0.21 6.88 2.86 -- 2.83 Dec-13 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 0.26 6.33 2.90 4.46 2.52 Dec-13 Dodge & Cox International Stock Caution 4Q17 6,350,448 6.83 4.41 -1.66 11.00 -2.75 -4.01 5.26 0.64 4.96 1.91 Dec-07 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 0.26 6.33 2.90 4.46 1.19 Dec-07 WCM Focused International Growth Instl 6,955,713 7.48 -0.97 -0.58 ------12.34 Mar-19 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 0.26 6.33 2.90 4.46 2.48 Mar-19 International Small Stocks 5,935,518 6.38 T. Rowe Price International Discovery 5,935,518 6.38 0.66 -2.61 12.26 -5.02 -0.87 7.07 -- -- 7.82 Sep-16 MSCI ACWI ex US Small Cap 2.43 -1.19 10.28 -5.63 -1.96 4.64 3.98 6.13 5.41 Sep-16 International Emerging Stocks 5,304,940 5.71 DFA Emerging Markets Core Equity I Caution 3Q17 5,304,940 5.71 2.74 -4.18 4.96 -1.75 -2.12 4.86 1.92 -- 4.04 Dec-11 MSCI Emerging Markets 1.91 -4.25 5.90 -2.02 -1.42 5.97 2.33 3.37 3.84 Dec-11 Fixed 11,414,976 12.28 0.00 0.58 5.69 6.45 2.74 1.98 2.79 -- 3.05 Dec-13 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 3.75 3.65 Dec-13 Barrow Hanley 5,807,102 6.25 -0.48 2.18 8.55 9.71 4.09 2.95 3.37 3.80 4.21 Apr-03 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 3.75 4.16 Apr-03 Templeton Global Bond Fund 2,684,415 2.89 0.74 -3.34 -0.67 1.04 -0.53 ------0.24 Apr-17 FTSE WGBI TR -1.30 0.85 6.27 8.13 3.19 1.19 1.80 1.69 4.05 Apr-17
Prepared by The Atlanta Consulting Group 27 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date
_ Chartwell Short Duration High Yield 2,923,459 3.14 0.28 1.20 6.37 5.40 3.25 ------3.35 May-17 ICE BofAML US Corp and High Yield 1-3 Yr 0.14 1.00 4.75 5.22 3.20 2.95 2.67 3.25 3.18 May-17 MLP 4,324,310 4.65 Tortoise MLP & Pipeline Instl 4,324,310 4.65 3.59 -2.91 17.22 -2.42 0.23 -0.07 -3.80 -- -1.16 Apr-14 Alerian MLP TR USD 0.71 -5.02 11.08 -8.13 -1.83 -2.46 -8.65 6.25 -5.61 Apr-14 Fund of Funds 9,019,471 9.70 Ironwood International Ltd. 9,019,471 9.70 -0.09 0.41 5.24 2.59 4.07 5.10 3.66 5.91 4.35 Mar-05 HFRI FOF: Conservative Index -0.06 -0.08 4.57 1.18 2.40 3.13 2.04 2.73 2.32 Mar-05 Real Estate 3,027,175 3.26 -0.36 -0.36 2.54 4.03 8.34 10.42 15.99 -- 14.78 Dec-13 FTSE NAREIT All Equity REIT 1.88 7.73 28.49 20.70 12.20 8.89 10.99 13.55 11.90 Dec-13 Harbert US RE Fund V LP 1,013,846 1.09 -1.37 -1.37 2.31 1.47 6.15 8.79 14.23 -- 11.89 Nov-13 FTSE NAREIT All Equity REIT 1.88 7.73 28.49 20.70 12.20 8.89 10.99 13.55 10.56 Nov-13 Harbert US RE Fund VI LP 1,967,937 2.12 0.00 0.00 2.85 6.41 ------10.60 Nov-17 FTSE NAREIT All Equity REIT 1.88 7.73 28.49 20.70 12.20 8.89 10.99 13.55 12.69 Nov-17 Harbert US RE Fund IV LP 45,391 0.05 Private Equity 2,743,746 2.95 0.00 0.00 2.36 6.43 13.16 13.54 10.41 -- 10.90 Dec-13 Cambridge Assoc. U.S. PE Index 0.00 0.00 4.81 3.04 10.56 12.81 10.65 13.74 11.10 Dec-13 Portfolio Advisors PE Offshore V 263,770 0.28 0.00 0.00 -2.95 0.52 8.74 10.14 7.51 9.98 7.48 Dec-08 Cambridge Assoc. U.S. PE Index 0.00 0.00 4.81 3.04 10.56 12.81 10.65 13.74 13.41 Dec-08 Portfolio Advisors PE VII 695,922 0.75 0.00 0.00 4.92 13.26 17.89 16.22 11.98 -- 13.04 Apr-13 Cambridge Assoc. U.S. PE Index 0.00 0.00 4.81 3.04 10.56 12.81 10.65 13.74 12.23 Apr-13 Portfolio Advisors Secondary Fund III, L.P. 1,193,806 1.28 0.00 0.00 3.01 10.54 10.76 ------31.30 Aug-17 Cambridge Assoc. U.S. PE Index 0.00 0.00 4.81 3.04 10.56 12.81 10.65 13.74 10.72 Aug-17 StepStone Pioneer Capital III, L.P. 590,248 0.63 0.00 0.00 1.31 -1.86 9.35 8.19 7.94 -- 14.77 Dec-09 Cambridge Assoc. U.S. PE Index 0.00 0.00 4.81 3.04 10.56 12.81 10.65 13.74 14.04 Dec-09 Private Debt 1,065,870 1.15 0.00 0.00 6.42 8.70 15.96 ------13.11 Oct-16 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 3.75 3.30 Oct-16 Portfolio Advisors Direct Credit II 665,870 0.72 0.00 0.00 6.40 8.71 15.97 ------13.11 Oct-16 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 3.75 3.30 Oct-16 Golub Capital Partners Intl 12 LP 400,000 0.43 0.00 0.00 6.49 ------6.49 Dec-18 Cliffwater Direct Lending Index 0.00 0.00 5.09 5.97 7.64 8.18 7.93 10.37 5.09 Dec-18 Cash/Short Term Fixed Income 5,338,057 5.74 PIMCO Short-Term Instl 5,301,149 5.70 0.29 0.73 2.30 1.95 2.19 2.36 -- -- 2.52 Jan-16 FTSE T-Bill 3 Months TR 0.17 0.57 1.79 2.36 1.97 1.52 0.96 0.52 1.29 Jan-16
Prepared by The Atlanta Consulting Group 28 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date
_ Cash 36,908 0.04
XXXXX - Balanced Index = Weighted Average of S&P 500 / Russell 2000 / MSCI ACWI ex USA / MSCI ACWI ex US Small Cap / MSCI Emerging Markets / BBgBarc US Aggregate TR / FTSE WGBI TR / ICE BofAML US Corp and High Yield 1-3 Yr / Alerian MLP TR USD / HFRI FOF: Conservative Index / FTSE NAREIT All Equity REIT / Cambridge Assoc. U.S. PE Index / BBgBarc US Aggregate TR / Cliffwater Direct Lending Index / FTSE T-Bill 3 Months TR / FTSE T-Bill 1 Month TR - CPI+4% = Consumer Price Index+0.00327 100 - Cambridge Assoc. U.S. PE Index = Cambridge Assoc. U.S. Private Equity Index - Cliffwater Direct Lending Index = Cliffwater Direct Lending Index
Prepared by The Atlanta Consulting Group 29 University of West Florida Foundation As of September 30, 2019
RISK RETURN STATISTICS RISK RETURN STATISTICS 1 Year 3 Years Foundation Balanced Index Foundation Balanced Index RETURN SUMMARY STATISTICS RETURN SUMMARY STATISTICS Number of Periods 12 12 Number of Periods 36 36 Maximum Return 5.94 6.29 Maximum Return 5.94 6.29 Minimum Return -5.55 -5.74 Minimum Return -5.55 -5.74 Annualized Return 1.41 1.05 Annualized Return 7.56 6.75 Total Return 1.41 1.05 Total Return 24.43 21.65 Annualized Excess Return Annualized Excess Return -0.86 -1.21 6.01 5.21 Over Risk Free Over Risk Free Annualized Excess Return 0.36 0.00 Annualized Excess Return 0.81 0.00
RISK SUMMARY STATISTICS RISK SUMMARY STATISTICS Beta 0.99 1.00 Beta 0.98 1.00 Upside Deviation 7.04 7.01 Upside Deviation 4.63 4.43 Downside Deviation 7.85 6.20 Downside Deviation 7.06 6.99
RISK/RETURN SUMMARY STATISTICS RISK/RETURN SUMMARY STATISTICS Annualized Standard Annualized Standard 12.37 12.47 7.94 8.02 Deviation Deviation Alpha 0.03 0.00 Alpha 0.07 0.00 Sharpe Ratio -0.07 -0.10 Sharpe Ratio 0.76 0.65 Excess Return Over Market Excess Return Over Market 0.03 0.00 0.10 0.00 / Risk / Risk Tracking Error 1.26 0.00 Tracking Error 1.19 0.00 Information Ratio 0.29 -- Information Ratio 0.68 --
CORRELATION STATISTICS CORRELATION STATISTICS R-Squared 0.99 1.00 R-Squared 0.98 1.00 Correlation 0.99 1.00 Correlation 0.99 1.00
Market Proxy: Balanced Index Market Proxy: Balanced Index Risk-Free Proxy: 91 Day T-Bills Risk-Free Proxy: 91 Day T-Bills
Prepared by The Atlanta Consulting Group 30 University of West Florida Foundation As of September 30, 2019
RISK RETURN STATISTICS RISK RETURN STATISTICS 5 Years Since Inception Foundation Balanced Index Foundation Balanced Index RETURN SUMMARY STATISTICS RETURN SUMMARY STATISTICS Number of Periods 60 60 Number of Periods 246 246 Maximum Return 5.94 6.29 Maximum Return 7.11 6.75 Minimum Return -5.55 -5.74 Minimum Return -13.67 -12.61 Annualized Return 5.42 5.05 Annualized Return 5.02 4.88 Total Return 30.22 27.95 Total Return 173.12 165.61 Annualized Excess Return Annualized Excess Return 4.45 4.08 3.27 3.13 Over Risk Free Over Risk Free Annualized Excess Return 0.37 0.00 Annualized Excess Return 0.14 0.00
RISK SUMMARY STATISTICS RISK SUMMARY STATISTICS Beta 0.99 1.00 Beta 1.01 1.00 Upside Deviation 4.88 4.78 Upside Deviation 5.32 5.32 Downside Deviation 6.05 6.17 Downside Deviation 7.77 7.30
RISK/RETURN SUMMARY STATISTICS RISK/RETURN SUMMARY STATISTICS Annualized Standard Annualized Standard 7.88 7.85 9.94 9.75 Deviation Deviation Alpha 0.03 0.00 Alpha 0.01 0.00 Sharpe Ratio 0.56 0.52 Sharpe Ratio 0.33 0.32 Excess Return Over Market Excess Return Over Market 0.05 0.00 0.01 0.00 / Risk / Risk Tracking Error 1.11 0.00 Tracking Error 1.43 0.00 Information Ratio 0.33 -- Information Ratio 0.10 --
CORRELATION STATISTICS CORRELATION STATISTICS R-Squared 0.98 1.00 R-Squared 0.98 1.00 Correlation 0.99 1.00 Correlation 0.99 1.00
Market Proxy: Balanced Index Market Proxy: Balanced Index Risk-Free Proxy: 91 Day T-Bills Risk-Free Proxy: 91 Day T-Bills
Prepared by The Atlanta Consulting Group 31 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Prepared by The Atlanta Consulting Group 32 University of West Florida Foundation As of September 30, 2019 Fiscal Year End: June
Prepared by The Atlanta Consulting Group 33 University of West Florida Foundation As of September 30, 2019
Prepared by The Atlanta Consulting Group 34 University of West Florida Foundation As of September 30, 2019
Cash Flows from Inception Quarter Beginning Net Investment Ending Net Cash Flow Fees Income Ending Market Value Change Market Value
_ Mar-99 -- $0 $0 $0 $53,608,325 $53,608,325 Jun-99 $53,608,325 -$743,004 $0 $418,078 $2,434,180 $55,299,501 Sep-99 $55,299,501 -$754,175 $0 $372,158 -$1,480,157 $53,065,169 Dec-99 $53,065,169 $102,766 $0 $191,672 $5,764,152 $58,932,087 Mar-00 $58,932,087 $242,744 $0 $447,309 $942,080 $60,116,911 Jun-00 $60,116,911 -$560,001 $0 $346,958 -$156,583 $59,400,327 Sep-00 $59,400,327 -$897,431 -$8,857 $350,457 $140,608 $58,643,504 Dec-00 $58,643,504 -$561,633 -$36,824 $350,071 -$2,507,443 $55,574,428 Mar-01 $55,574,428 -$375,251 -$22,203 $406,691 -$4,182,435 $51,016,742 Jun-01 $51,016,742 -$365,927 -$21,840 $371,235 $2,216,697 $52,867,512 Sep-01 $52,867,512 -$663,768 -$21,567 $441,221 -$4,592,364 $47,611,380 Dec-01 $47,611,380 -$1,502,838 -$10,135 $587,524 $2,830,376 $48,938,918 Mar-02 $48,938,918 -$15,173 -$20,037 $359,943 $699,111 $49,622,856 Jun-02 $49,622,856 -$511,193 -$20,132 $372,089 -$2,642,350 $46,469,313 Sep-02 $46,469,313 -$461,137 -$10,326 $367,433 -$5,406,592 $40,601,584 Dec-02 $40,601,584 -$305,884 -$8,656 $470,499 $1,944,714 $42,240,414 Mar-03 $42,240,414 -$655,362 -$38,784 $302,011 -$1,599,613 $39,985,439 Jun-03 $39,985,439 -$778,780 -$13,903 $333,918 $4,622,010 $43,828,669 Sep-03 $43,828,669 -$662,389 -$17,967 $238,831 $1,365,464 $44,531,744 Dec-03 $44,531,744 -$399,999 -$47,455 $446,659 $4,610,030 $48,741,775 Mar-04 $48,741,775 -$543,579 -$39,390 $216,156 $1,097,837 $49,296,033 Jun-04 $49,296,033 -$109,883 -$39,387 $265,045 $138,340 $49,324,490 Sep-04 $49,324,490 -$1,009,371 -$38,556 $224,704 $9,559 $48,324,678 Dec-04 $48,324,678 -$784,131 -$40,289 $1,231,367 $4,362,977 $51,903,524 Mar-05 $51,903,524 -$656,830 -$40,122 $251,014 -$535,279 $50,711,415 Jun-05 $50,711,415 -$584,889 -$34,647 $236,790 $508,118 $50,634,644 Sep-05 $50,634,644 -$8,484 -$35,672 $225,922 $2,193,834 $52,819,994 Dec-05 $52,819,994 -$8,387 -$8,664 $1,673,866 $1,142,041 $53,953,648 Mar-06 $53,953,648 -$711,443 -$35,909 $258,749 $2,982,889 $56,225,094 Jun-06 $56,225,094 -$150,700 -$37,052 $279,282 -$455,018 $55,619,376 Sep-06 $55,619,376 -$619,204 -$37,906 $257,905 $1,959,980 $56,960,152
Prepared by The Atlanta Consulting Group 35 University of West Florida Foundation As of September 30, 2019
Quarter Beginning Net Investment Ending Net Cash Flow Fees Income Ending Market Value Change Market Value
_ Dec-06 $56,960,152 -$259,001 -$38,682 $2,063,223 $3,295,891 $59,997,042 Mar-07 $59,997,042 -$8,817 -$40,216 $279,221 $1,353,294 $61,341,519 Jun-07 $61,341,519 -$760,397 -$41,417 $272,732 $3,135,778 $63,716,900 Sep-07 $63,716,900 -$1,008,735 -$53,847 $266,342 $226,739 $62,934,904 Dec-07 $62,934,904 -$959,825 -$49,127 $1,248,780 -$1,068,882 $60,906,197 Mar-08 $60,906,197 -$10,042 -$46,120 $250,632 -$3,191,700 $57,704,455 Jun-08 $57,704,455 -$499,998 -$48,727 $255,465 -$151,860 $57,052,597 Sep-08 $57,052,597 $585,757 -$45,037 $257,621 -$5,558,584 $52,079,770 Dec-08 $52,079,770 -$27,930 -$41,208 $628,017 -$8,704,556 $43,347,284 Mar-09 $43,347,284 $460,309 -$34,186 $240,805 -$2,719,546 $41,088,047 Jun-09 $41,088,047 $18,824 -$33,104 $234,150 $4,983,802 $46,090,673 Sep-09 $46,090,673 $36,683 -$36,990 $262,605 $5,171,637 $51,298,993 Dec-09 $51,298,993 -$977,471 -$37,425 $346,394 $2,056,832 $52,378,354 Mar-10 $52,378,354 $21,655 -$30,856 $223,781 $1,903,830 $54,303,839 Jun-10 $54,303,839 $103,822 -$53,645 $195,451 -$3,540,221 $50,867,440 Sep-10 $50,867,440 $131,756 -$42,592 $214,909 $4,484,851 $55,484,047 Dec-10 $55,484,047 $175,042 -$43,432 $370,586 $4,227,161 $59,886,250 Mar-11 $59,886,250 -$837,606 -$47,478 $230,071 $2,052,173 $61,100,817 Jun-11 $61,100,817 $138,311 -$49,563 $204,447 $411,277 $61,650,405 Sep-11 $61,650,405 -$87,638 -$50,173 $229,755 -$7,494,731 $54,068,036 Dec-11 $54,068,036 $387,014 -$44,939 $326,664 $3,294,906 $57,749,956 Mar-12 $57,749,956 $105,094 -$46,135 $219,525 $4,386,376 $62,241,426 Jun-12 $62,241,426 -$1,839,680 -$45,081 $226,018 -$1,974,413 $58,427,333 Sep-12 $58,427,333 -$1,822,658 -$42,326 $199,084 $2,632,789 $59,237,464 Dec-12 $59,237,464 -$27,735 -$42,704 $471,816 $1,645,834 $60,855,563 Mar-13 $60,855,563 -$98,538 -$44,366 $153,679 $3,250,742 $64,007,767 Jun-13 $64,007,767 -$1,862,723 -$45,603 $192,329 $635,692 $62,780,736 Sep-13 $62,780,736 $18,498 -$45,965 $216,059 $3,337,883 $66,137,117 Dec-13 $66,137,117 -$299,980 -$47,478 $402,765 $3,924,654 $69,761,791 Mar-14 $69,761,791 -$587,766 -$49,911 $189,387 $948,471 $70,122,496 Jun-14 $70,122,496 -$326,452 -$37,086 $213,400 $2,362,733 $72,158,777 Sep-14 $72,158,777 $75,826 -$37,270 $180,892 -$730,067 $71,504,536
Prepared by The Atlanta Consulting Group 36 University of West Florida Foundation As of September 30, 2019
Quarter Beginning Net Investment Ending Net Cash Flow Fees Income Ending Market Value Change Market Value
_ Dec-14 $71,504,536 -$22,845 -$27,895 $1,102,090 $749,766 $72,231,457 Mar-15 $72,231,457 -$28,279 -$27,496 $139,418 $1,578,684 $73,781,862 Jun-15 $73,781,862 $324,851 -$28,452 $176,783 $156,312 $74,263,025 Sep-15 $74,263,025 -$12,826 -$27,644 $180,454 -$5,115,727 $69,134,472 Dec-15 $69,134,472 $84,429 -$28,653 $708,198 $1,392,509 $70,611,410 Mar-16 $70,611,410 $4,924,041 -$28,909 $159,866 $109,986 $75,645,437 Jun-16 $75,645,437 -$140,258 -$29,517 $210,119 $1,697,746 $77,202,925 Sep-16 $77,202,925 -$514,301 -$30,494 $173,911 $3,397,085 $80,085,709 Dec-16 $80,085,709 -$681,182 -$31,704 $554,397 $1,012,120 $80,416,647 Mar-17 $80,416,647 $119,141 -$32,584 $164,409 $3,767,164 $84,302,952 Jun-17 $84,302,952 $1,190,909 -$33,371 $237,005 $2,458,418 $87,952,279 Sep-17 $87,952,279 -$167,740 $0 $205,111 $3,691,890 $91,476,429 Dec-17 $91,476,429 -$1,896,654 -$26,870 $1,067,475 $3,277,624 $92,857,399 Mar-18 $92,857,399 -$1,462,821 -$31,969 $153,210 -$157,218 $91,237,360 Jun-18 $91,237,360 -$1,003,472 -$30,938 $254,995 $1,456,415 $91,690,303 Sep-18 $91,690,303 -$1,166,512 -$31,649 $233,604 $2,604,960 $93,128,750 Dec-18 $93,128,750 -$608,277 -$29,521 $1,517,670 -$8,778,241 $83,742,231 Mar-19 $83,742,231 -$12,573 -$25,883 $206,506 $7,373,098 $91,102,756 Jun-19 $91,102,756 -$289,148 -$28,135 $311,554 $3,404,055 $94,217,664 Sep-19 $94,217,664 -$559,401 -$29,654 $247,945 -$683,967 $92,974,297
XXXXX
Prepared by The Atlanta Consulting Group 37 University of West Florida Eagle Capital Management As of September 30, 2019
Universe Name: Large Cap MStar MF # of Observations: 1,005 (9/30/2019)
QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%)
_ Eagle Capital Management -1.42 89 19.42 52 2.51 55 13.95 28 10.32 39 -- -- S&P 500 1.70 35 20.55 34 4.25 32 13.39 34 10.84 28 13.24 27 Over/Under -3.12 -1.13 -1.74 0.56 -0.52
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
_ Eagle Capital Management -5.24 22.66 10.10 1.75 12.28 35.80 ------S&P 500 -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 Over/Under -0.86 0.83 -1.86 0.37 -1.41 3.41
XXXXX Since Inception Statistics Summary Up Mkt Cap Ratio Down Mkt Cap Anlzd Std Dev Anlzd Alpha Beta Sharpe Ratio Tracking Error Info Ratio Anlzd Ratio Anlzd
_ Eagle Capital Management 12.37% -0.89% 1.07 106.04% 109.22% 1.02 3.50% 0.01 S&P 500 11.10% 0.00% 1.00 100.00% 100.00% 1.13 0.00% --
Prepared by The Atlanta Consulting Group 38 University of West Florida Eagle Capital Management As of September 30, 2019
Sector Best Performers Characteristics Portfolio S&P 500 Portfolio S&P 500 Weight % Return % INDUSTRY SECTOR DISTRIBUTION (% Equity) _ Number of Holdings 34 505 Energy 0.00 4.64 FISERV (FISV) 1.33% 13.64% Weighted Avg. Market Cap. ($B) 195.88 230.50 Materials 1.13 2.71 ALPHABET A (GOOGL) 0.54% 12.78% Median Market Cap. ($B) 56.99 22.53 Industrials 6.69 9.39 ALPHABET 'C' (GOOG) 8.19% 12.78% Price To Earnings 16.86 20.51 Consumer Discretionary 14.95 10.12 WELLS FARGO & CO (WFC) 4.74% 7.77% Price To Book 2.93 3.65 Consumer Staples 0.00 7.37 COMCAST A (CMCSA) 4.37% 7.14% Price To Sales 1.68 2.11 Health Care 2.58 13.63 AERCAP HOLDINGS N V (AER) 1.65% 5.27% Return on Equity (%) 14.97 26.53 Financials 29.85 13.11 CHARTER COMMS.CL.A (CHTR) 2.07% 4.29% Yield (%) 1.14 1.96 Information Technology 13.13 21.92 GOLDMAN SACHS GP. (GS) 5.23% 1.91% Beta 1.11 1.00 Communication Services 30.04 10.49 LIBERTY BROADBAND SR.A (LBRDA) 2.40% 1.63% R-Squared 0.94 1.00 Utilities 0.00 3.42 GCI LIBERTY A (GLIBA) 2.47% 0.99% Real Estate 0.00 3.19 Total 32.99%
_
Performance By Sectors
7/1/2019 - 9/30/2019 Allocation Selection Portfolio Index Excess Portfolio Index Excess Total GICS Sector Effect Effect Weight Weight Weight USD Return USD Return Return Contrib. (Local) (Local) Worst Performers
_ Energy 0.94% 5.05% -4.11% 8.65% -6.11% 14.76% 0.30% 0.14% 0.05% Weight % Return % _ Materials 1.27% 2.80% -1.53% 0.54% -0.12% 0.66% 0.03% 0.00% -0.02% LIBERTY TRIP ADVI.HDG. SR.A (LTRPA) 0.17% -24.11% Industrials 5.68% 9.38% -3.70% -7.29% 0.90% -8.18% 0.05% -0.38% -0.41% TRIPADVISOR 'A' (TRIP) 1.14% -16.44% Consumer Discretionary 18.54% 10.19% 8.35% -8.81% 0.48% -9.29% -0.09% -1.74% -1.96% MOHAWK INDUSTRIES (MHK) 1.94% -15.87% Consumer Staples 0.00% 7.27% -7.27% -- 6.12% -- -0.32% 0.00% 0.00% GENERAL ELECTRIC (GE) 4.01% -14.77% Health Care 3.27% 14.20% -10.93% -10.53% -2.26% -8.27% 0.44% -0.28% -0.40% FOX B (FOX) 0.91% -13.05% Financials 31.09% 13.07% 18.02% 0.83% 2.00% -1.17% 0.08% -0.38% -0.25% DISH NETWORK 'A' (DISH) 1.67% -11.30% Information Technology 5.98% 21.48% -15.50% 0.78% 3.32% -2.54% -0.25% -0.12% -0.02% MARRIOTT INTL.'A' (MAR) 4.02% -11.02% Communication Services 33.25% 10.19% 23.06% 0.49% 2.21% -1.72% 0.11% -0.59% -0.42% UNITEDHEALTH GROUP (UNH) 2.58% -10.53% Utilities 0.00% 3.31% -3.31% -- 9.36% -- -0.25% 0.00% 0.00% LIBERTY GLOBAL SR.C (LBTYK) 3.19% -10.33% Real Estate 0.00% 3.05% -3.05% -- 7.71% -- -0.18% 0.00% 0.00% AMAZON.COM (AMZN) 5.25% -8.33% Total -1.76% 1.69% -3.44% -0.09% -3.35% -3.44% Total 24.89%
_ XXXXX
Prepared by The Atlanta Consulting Group 39 University of West Florida Vanguard 500 Index Admiral As of September 30, 2019
Description: Universe Name: Large Cap MStar MF The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. # of Observations: 1,005 (9/30/2019) The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts Fund Information as of 9/30/19 to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in VANGUARD 500 INDEX Fund Name approximately the same proportion as its weighting in the index. ADMIRAL Ticker VFIAX Morningstar Category Large Blend Benchmark S&P 500 Expense Ratio 0.04% Fund Assets ($mm) 294,858.71 Share Class Inception Date 11/13/2000 Manager Tenure 4
Top Holdings as of 9/30/19 MICROSOFT CORP 4.29% APPLE INC 3.84% AMAZON.COM INC 2.91% FACEBOOK INC A 1.73% BERKSHIRE HATHAWAY INC B 1.60% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs JPMORGAN CHASE & CO 1.52% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) ALPHABET INC CLASS C 1.49% _ ALPHABET INC A 1.47% Vanguard 500 Index 1.69 36 20.54 35 4.22 33 13.36 35 10.80 28 13.21 28 JOHNSON & JOHNSON 1.38% S&P 500 1.70 35 20.55 34 4.25 32 13.39 34 10.84 28 13.24 27 PROCTER & GAMBLE CO 1.26% Over/Under -0.01 -0.01 -0.03 -0.03 -0.04 -0.03
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 2.40% Vanguard 500 Index -4.43 21.79 11.93 1.36 13.64 32.33 15.96 2.08 15.05 26.62 COMMUNICATION SERVICES 3.41% S&P 500 -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 CONSUMER CYCLICAL 11.77% Over/Under -0.05 -0.04 -0.03 -0.02 -0.05 -0.06 -0.04 -0.03 -0.01 0.16 CONSUMER DEFENSIVE 8.13% XXXXX ENERGY 4.53% 5 Years Statistics Summary FINANCIAL SERVICES 15.67% Down Mkt HEALTHCARE 13.54% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 10.40% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 3.22%
_ Vanguard 500 Index 11.93% -0.03% 1.00 99.87% 100.05% 0.83 0.01% -2.86 TECHNOLOGY 23.34% UTILITIES 3.59% S&P 500 11.93% 0.00% 1.00 100.00% 100.00% 0.83 0.00% --
Prepared by The Atlanta Consulting Group 40 University of West Florida Conestoga Small Cap Investors As of September 30, 2019
Description: Universe Name: Small Cap MStar MF The investment seeks long-term growth of capital. # of Observations: 526 (9/30/2019) Under normal market circumstances, the fund invests at least 80% of its net assets in equity securities of small-cap companies. Equity securities include American depositary receipts ("ADRs"), convertible securities, foreign and domestic common and preferred stocks, Fund Information as of 9/30/19 rights and warrants. CONESTOGA SMALL CAP Fund Name INVESTORS Ticker CCASX Morningstar Category Small Growth Benchmark Russell 2000 Expense Ratio 1.10% Fund Assets ($mm) 857.99 Share Class Inception Date 10/1/2002 Manager Tenure 17
Top Holdings as of 9/30/19 EXPONENT INC 4.29% THE DESCARTES SYSTEMS GROUP INC 3.61% CANTEL MEDICAL CORP 3.19% SIMPSON MANUFACTURING CO INC 2.98% OMNICELL INC 2.84% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs MESA LABORATORIES INC 2.82% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) TREX CO INC 2.77% _ NEOGEN CORP 2.69% Conestoga Small Cap -3.69 75 18.86 24 -3.57 22 17.26 4 15.73 2 14.70 6 FOX FACTORY HOLDING CORP 2.63% Russell 2000 -2.40 57 14.18 60 -8.89 62 8.23 53 8.19 48 11.19 56 PROS HOLDINGS INC 2.57% Over/Under -1.29 4.68 5.32 9.03 7.54 3.51
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 8.38% Conestoga Small Cap 0.61 28.44 14.06 8.03 -8.05 49.26 11.00 4.55 23.99 29.09 COMMUNICATION SERVICES 0.00% Russell 2000 -11.01 14.65 21.31 -4.41 4.90 38.82 16.35 -4.18 26.85 27.17 CONSUMER CYCLICAL 8.83% Over/Under 11.62 13.79 -7.25 12.44 -12.95 10.44 -5.35 8.73 -2.86 1.92 CONSUMER DEFENSIVE 5.07% XXXXX ENERGY 0.00% 5 Years Statistics Summary FINANCIAL SERVICES 0.00% Down Mkt HEALTHCARE 16.10% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 23.02% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 1.87% _ TECHNOLOGY 36.74% Conestoga Small Cap 16.08% 8.29% 0.91 110.02% 78.22% 0.92 6.71% 1.12 UTILITIES 0.00% Russell 2000 16.16% 0.00% 1.00 100.00% 100.00% 0.45 0.00% --
Prepared by The Atlanta Consulting Group 41 University of West Florida Fuller & Thaler Behav Sm-Cp As of September 30, 2019
Description: Universe Name: Small Cap MStar MF The investment seeks long-term capital appreciation. # of Observations: 526 (9/30/2019) The fund invests at least 80% of its net assets (plus borrowings for investment purposes) in common stocks of small capitalization companies based in the U.S. The fund managers consider a company to be based in the U.S. if it is publicly traded in the U.S. and it Fund Information as of 9/30/19 satisfies one or more of the following additional criteria: it is incorporated in the U.S., it is headquartered in the U.S., its reported assets FULLER & THALER Fund Name are primarily located in the U.S., or it derives the majority of its revenue from the U.S. BEHAVIORAL SM-CP EQ INST Ticker FTHSX Morningstar Category Small Blend Benchmark Russell 2000 Expense Ratio 0.85% Fund Assets ($mm) 1,619.08 Share Class Inception Date 9/8/2011 Manager Tenure 8
Top Holdings as of 9/30/19 JABIL INC 3.82% HELEN OF TROY LTD 3.67% LANDSTAR SYSTEM INC 3.63% HANCOCK WHITNEY CORP 3.34% FTI CONSULTING INC 2.44% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs MURPHY USA INC 2.43% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) FULTON FINANCIAL CORP 2.42% _ DECKERS OUTDOOR CORP 2.31% Fuller & Thaler Behav Sm-Cp 0.52 14 17.61 33 -4.65 29 10.57 28 9.52 30 -- -- WESCO INTERNATIONAL INC 2.30% Russell 2000 -2.40 57 14.18 60 -8.89 62 8.23 53 8.19 48 11.19 56 MEDPACE HOLDINGS INC 2.27% Over/Under 2.92 3.43 4.24 2.34 1.33
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 4.03% Fuller & Thaler Behav Sm-Cp -13.17 17.35 29.82 -3.48 11.00 36.12 20.22 ------COMMUNICATION SERVICES 0.00% Russell 2000 -11.01 14.65 21.31 -4.41 4.90 38.82 16.35 -4.18 26.85 27.17 CONSUMER CYCLICAL 12.35% Over/Under -2.16 2.70 8.51 0.93 6.10 -2.70 3.87 CONSUMER DEFENSIVE 5.00% XXXXX ENERGY 0.57% 5 Years Statistics Summary FINANCIAL SERVICES 22.98% Down Mkt HEALTHCARE 11.17% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 21.05% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 5.71% _ TECHNOLOGY 16.78% Fuller & Thaler Behav Sm-Cp 15.26% 2.27% 0.89 87.94% 82.38% 0.56 5.57% 0.24 UTILITIES 0.36% Russell 2000 16.16% 0.00% 1.00 100.00% 100.00% 0.45 0.00% --
Prepared by The Atlanta Consulting Group 42 University of West Florida Dodge & Cox International As of September 30, 2019 Description: Universe Name: Foreign Large Blend MStar MF The investment seeks long-term growth of principal and income. # of Observations: 198 (9/30/2019) Under normal circumstances, the fund will invest at least 80% of its total assets in equity securities of non-U.S. companies, including common stocks, depositary receipts evidencing ownership of common stocks, preferred stocks, securities convertible into common Fund Information as of 9/30/19 DODGE & COX stocks, and securities that carry the right to buy common stocks. The fund typically invests in medium-to-large well-established Fund Name companies based on standards of the applicable market. INTERNATIONAL STOCK Ticker DODFX Morningstar Category Foreign Large Value Benchmark MSCI ACWI ex USA Expense Ratio 0.63% Fund Assets ($mm) 47,225.36 Share Class Inception Date 5/1/2001 Manager Tenure 19 Top Holdings as of 9/30/19 SANOFI SA 3.27% BNP PARIBAS 2.97% ICICI BANK LTD 2.91% ROCHE HOLDING AG DIVIDEND RIGHT CERT. 2.85% UBS GROUP AG 2.84% MITSUBISHI ELECTRIC CORP 2.76% BAYER AG 2.69% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) CREDIT SUISSE GROUP AG 2.53% _ UNICREDIT SPA 2.47% Dodge & Cox International -1.66 63 11.00 74 -2.75 55 5.26 62 0.64 97 4.92 45 GLAXOSMITHKLINE PLC 2.43% MSCI ACWI ex USA -1.80 70 11.56 64 -1.23 31 6.33 25 2.90 63 4.46 74 Over/Under 0.14 -0.56 -1.52 -1.07 -2.26 0.46
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 5.95% Dodge & Cox International -17.98 23.94 8.26 -11.35 0.08 26.31 21.03 -15.97 13.69 47.46 COMMUNICATION SERVICES 4.43% MSCI ACWI ex USA -14.20 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 CONSUMER CYCLICAL 7.97% Over/Under -3.78 -3.25 3.76 -5.69 3.95 11.02 4.20 -2.26 2.54 6.01 CONSUMER DEFENSIVE 1.10% XXXXX ENERGY 9.26% 5 Years Statistics Summary FINANCIAL SERVICES 30.43% Down Mkt HEALTHCARE 15.98% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 6.45% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.87% _ TECHNOLOGY 16.52% Dodge & Cox International 14.93% -2.66% 1.14 109.99% 119.16% -0.02 4.96% -0.46 UTILITIES 1.04% MSCI ACWI ex USA 12.48% 0.00% 1.00 100.00% 100.00% 0.16 0.00% --
XXXXX
Prepared by The Atlanta Consulting Group 43 University of West Florida WCM Focused Intl Growth As of September 30, 2019 Description: Universe Name: Foreign Large Blend MStar MF The investment seeks long-term capital appreciation. # of Observations: 198 (9/30/2019) The fund normally invests at least 75% of its net assets in equity securities of non-U.S. domiciled companies or depository receipts of non-U.S. domiciled companies located in developed countries and in emerging and frontier market countries. The fund's investments Fund Information as of 7/31/19 in equity securities may include common stocks and depository receipts. It generally invests in securities of companies located in WCM FOCUSED different regions and in at least three different countries. Fund Name INTERNATIONAL GROWTH INSTL Ticker WCMIX Morningstar Category Foreign Large Growth Benchmark MSCI ACWI ex USA Expense Ratio 1.06% Fund Assets ($mm) 8,928.19 Share Class Inception Date 5/31/2011 Manager Tenure 8 Top Holdings as of 7/31/19 CSL LTD 4.24% ACCENTURE PLC CLASS A 4.22% CANADIAN PACIFIC RAILWAY LTD 4.17% EXPERIAN PLC 4.03% LVMH MOET HENNESSY LOUIS VUITTON SE 4.03% SHOPIFY INC A 4.01% ADIDAS AG 3.89% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) NESTLE SA 3.71% _ KEYENCE CORP 3.56% WCM Focused Intl Growth -0.58 19 23.32 1 8.07 1 11.76 1 9.81 1 -- -- METTLER-TOLEDO INTERNATIONAL INC 3.56% MSCI ACWI ex USA -1.80 70 11.56 64 -1.23 31 6.33 25 2.90 63 4.46 74 Over/Under 1.22 11.76 9.30 5.43 6.91
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 7/31/19 _ BASIC MATERIALS 6.57% WCM Focused Intl Growth -7.30 31.24 0.67 5.79 -0.30 21.72 12.47 ------COMMUNICATION SERVICES 0.00% MSCI ACWI ex USA -14.20 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 CONSUMER CYCLICAL 11.93% Over/Under 6.90 4.05 -3.83 11.45 3.57 6.43 -4.36 CONSUMER DEFENSIVE 10.98% XXXXX ENERGY 0.00% 5 Years Statistics Summary FINANCIAL SERVICES 10.88% Down Mkt HEALTHCARE 20.25% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 12.71% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.00%
_ WCM Focused Intl Growth 11.78% 7.48% 0.81 91.71% 54.81% 0.76 6.61% 1.05 TECHNOLOGY 26.68% UTILITIES 0.00% MSCI ACWI ex USA 12.48% 0.00% 1.00 100.00% 100.00% 0.16 0.00% --
Prepared by The Atlanta Consulting Group 44 University of West Florida T. Rowe Price International As of September 30, 2019 Description: Universe Name: Foreign Small/Mid Blend Mstar MF The investment seeks long-term growth of capital through investments primarily in the common stocks of rapidly growing, small- to # of Observations: 29 (9/30/2019) medium-sized companies outside the U.S. The managers expect to primarily invest outside the U.S. and to diversify broadly across a variety of industries in developed and Fund Information as of 9/30/19 T. ROWE PRICE emerging market countries throughout the world. Normally, at least 80% of the fund's net assets (including any borrowings for Fund Name investment purposes) will be invested in non-U.S. stocks. INTERNATIONAL DISCOVERY Ticker PRIDX Morningstar Category Foreign Small/Mid Growth Benchmark MSCI ACWI ex US Small Cap Expense Ratio 1.20% Fund Assets ($mm) 4,523.23 Share Class Inception Date 12/30/1988 Manager Tenure 21 Top Holdings as of 9/30/19 COUNTRY GARDEN SERVICES HOLDINGS CO LTD 2.71% SHOPIFY INC A 1.94% AMPLIFON SPA 1.62% MERCADOLIBRE INC 1.32% ASCENTIAL PLC 1.20% INTERMEDIATE CAPITAL GROUP PLC 1.13% INMOBILIARIA COLONIAL SOCIMI SA 1.02% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) ELEKTA AB CLASS B 1.01% _ OCADO GROUP PLC 0.97% T. Rowe Price International -2.61 85 12.26 34 -5.02 27 7.07 8 7.24 1 9.08 12 FISHER & PAYKEL HEALTHCARE CORP LTD 0.96% MSCI ACWI ex US Small Cap -1.19 38 10.28 57 -5.63 29 4.64 47 3.98 62 6.13 74 Over/Under -1.42 1.98 0.61 2.43 3.26 2.95
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 7.29% T. Rowe Price International -17.47 39.01 0.95 9.88 -0.43 24.37 26.00 -14.08 20.47 55.69 COMMUNICATION SERVICES 0.69% MSCI ACWI ex US Small Cap -18.20 31.65 3.91 2.60 -4.03 19.73 18.52 -18.50 25.21 62.91 CONSUMER CYCLICAL 21.28% Over/Under 0.73 7.36 -2.96 7.28 3.60 4.64 7.48 4.42 -4.74 -7.22 CONSUMER DEFENSIVE 4.97% XXXXX ENERGY 1.44% 5 Years Statistics Summary FINANCIAL SERVICES 7.81% Down Mkt HEALTHCARE 14.87% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 12.56% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 7.69% _ TECHNOLOGY 20.40% T. Rowe Price International 11.76% 3.62% 0.91 95.42% 76.79% 0.54 3.92% 0.83 UTILITIES 0.99% MSCI ACWI ex US Small Cap 12.29% 0.00% 1.00 100.00% 100.00% 0.25 0.00% --
Prepared by The Atlanta Consulting Group 45 University of West Florida DFA Emerging Markets Core As of September 30, 2019 Description: Universe Name: Diversified Emerging Mkts MStar MF The investment seeks long-term capital appreciation. # of Observations: 236 (9/30/2019) The Portfolio purchases a broad and diverse group of securities associated with emerging markets, which may include frontier markets (emerging market countries in an earlier stage of development), authorized for investment by Dimensional Fund Advisors Fund Information as of 8/31/19 DFA EMERGING MARKETS LP's (the "Advisor") Investment Committee ("Approved Markets"), with a greater emphasis on small capitalization, value, and high Fund Name profitability companies. CORE EQUITY I Ticker DFCEX Morningstar Category Diversified Emerging Mkts Benchmark MSCI Emerging Markets Expense Ratio 0.52% Fund Assets ($mm) 26,893.61 Share Class Inception Date 4/5/2005 Manager Tenure 10 Top Holdings as of 8/31/19 SAMSUNG ELECTRONICS CO LTD 3.95% TENCENT HOLDINGS LTD 1.81% TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR 1.72% TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD 1.26% ALIBABA GROUP HOLDING LTD ADR 0.88% SK HYNIX INC 0.86% VALE SA 0.82% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) PING AN INSURANCE (GROUP) CO. OF CHINA LTD CLASS H 0.75% _ RELIANCE INDUSTRIES LTD 0.75% DFA Emerging Markets Core -4.18 72 4.96 80 -1.75 71 4.85 55 2.07 55 3.74 49 PETROLEO BRASILEIRO SA PETROBRAS PARTICIPATING 0.65% MSCI Emerging Markets -4.25 73 5.90 73 -2.02 73 5.97 38 2.33 48 3.37 59 PREFERRED Over/Under 0.07 -0.94 0.27 -1.12 -0.26 0.37
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 8/31/19 _ BASIC MATERIALS 10.67% DFA Emerging Markets Core -15.25 36.55 12.35 -14.86 -0.91 -2.64 20.49 -20.65 23.62 83.58 COMMUNICATION SERVICES 4.07% MSCI Emerging Markets -14.58 37.28 11.19 -14.92 -2.19 -2.60 18.22 -18.42 18.88 78.51 CONSUMER CYCLICAL 11.14% Over/Under -0.67 -0.73 1.16 0.06 1.28 -0.04 2.27 -2.23 4.74 5.07 CONSUMER DEFENSIVE 7.41% XXXXX ENERGY 6.62% 5 Years Statistics Summary FINANCIAL SERVICES 18.33% Down Mkt HEALTHCARE 2.96% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 8.08% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 3.97% _ TECHNOLOGY 23.18% DFA Emerging Markets Core 14.95% -0.14% 0.95 96.42% 98.39% 0.08 2.67% -0.10 UTILITIES 3.54% MSCI Emerging Markets 15.56% 0.00% 1.00 100.00% 100.00% 0.09 0.00% --
Prepared by The Atlanta Consulting Group 46 University of West Florida Fixed
As of September 30, 2019 Fund Characteristics as of 9/30/2019 Universe Name: Intermediate Core Bond MStar MF Composite BBgBarc Agg # of Observations: 120 (9/30/2019) SEC Yield Average 3.16 2.27 Duration Average 2.54 6.21 Maturity 4.59 13.11 *Credit Quality as of 9/30/2018 AAA 34.97 71.98 AA 3.40 3.46 A 13.30 10.68 BBB 17.74 13.86 BB 26.09 0.00 B 5.17 0.00 Below B 0.00 0.00 Not Rated -0.68 0.00
QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%)
_ Fixed 0.58 99 5.69 89 6.45 97 1.98 91 2.79 85 -- -- BBgBarc US Aggregate TR 2.27 39 8.52 46 10.30 37 2.92 47 3.38 32 3.75 59 Over/Under -1.69 -2.83 -3.85 -0.94 -0.59
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
_ Fixed 0.17 3.11 3.20 0.45 5.02 ------BBgBarc US Aggregate TR 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54 5.93 Over/Under 0.16 -0.43 0.55 -0.10 -0.95
Since Inception Statistics Summary Name Market Value % of Portfolio Down Mkt Fixed $11,414,976 100.00% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error Barrow Hanley $5,807,102 50.87% Anlzd Templeton Global Bond Fund $2,684,415 23.52% _ Fixed 2.40% 0.84% 0.60 72.96% 59.78% 0.93 1.98% -0.31 Chartwell Short Duration High Yield $2,923,459 25.61% BBgBarc US Aggregate TR 3.01% 0.00% 1.00 100.00% 100.00% 0.95 0.00% -- Total $11,414,976 100.00%
Prepared by The Atlanta Consulting Group 47 University of West Florida Barrow Hanley As of September 30, 2019
Universe Name: Intermediate Core Bond MStar MF # of Observations: 120 (9/30/2019)
QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%)
_ Barrow Hanley 2.18 62 8.55 46 9.71 65 2.95 45 3.37 32 3.80 57 BBgBarc US Aggregate TR 2.27 39 8.52 46 10.30 37 2.92 47 3.38 32 3.75 59 Over/Under -0.09 0.03 -0.59 0.03 -0.01 0.05 90% BBgBarc Agg/10% 2.18 62 8.82 32 9.92 59 3.25 18 3.59 16 4.18 30 BBgBarc High Yield 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
_ Barrow Hanley -0.55 4.03 3.20 0.45 5.02 -1.48 5.56 7.10 6.36 8.17 BBgBarc US Aggregate TR 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54 5.93 Over/Under -0.56 0.49 0.55 -0.10 -0.95 0.54 1.35 -0.74 -0.18 2.24
Since Inception Statistics Summary Up Mkt Cap Ratio Down Mkt Cap Anlzd Std Dev Anlzd Alpha Beta Sharpe Ratio Tracking Error Info Ratio Anlzd Ratio Anlzd
_ Barrow Hanley 3.49% 0.04% 1.00 100.90% 100.28% 0.85 0.80% 0.07 BBgBarc US Aggregate TR 3.39% 0.00% 1.00 100.00% 100.00% 0.86 0.00% --
Prepared by The Atlanta Consulting Group 48 University of West Florida Templeton Global Bond Fund As of September 30, 2019
Description: Universe Name: World Bond MStar MF The investment seeks current income with capital appreciation and growth of income. # of Observations: 54 (9/30/2019) Under normal market conditions, the fund invests at least 80% of its net assets in "bonds." Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. It invests predominantly in bonds issued by governments, government-related Fund Information as of 6/30/19 entities and government agencies located around the world. The fund may invest up to 25% of its total assets in bonds that are rated TEMPLETON GLOBAL BOND Fund Name below investment grade or, if unrated determined by the investment manager to be of comparable quality. It is non-diversified. ADV Ticker TGBAX Morningstar Category Nontraditional Bond Benchmark FTSE WGBI TR Expense Ratio 0.69% Fund Assets ($mm) 18,428.26 Share Class Inception Date 1/2/1997 Manager Tenure 18
Fund Characteristics as of 6/30/19 Sharpe Ratio (3 Year) 0.54 Average Duration -2.82 Average Coupon 8.64% Average Effective Maturity 1.20 R-Squared (3 Year) 0.10 Alpha (3 Year) 0.42% Beta (3 Year) -0.35 QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) Credit Quality as of 6/30/19 _ Templeton Global Bond Fund -3.34 99 -0.67 99 1.04 94 3.84 10 0.80 78 3.82 16 AAA 24.50% FTSE WGBI TR 0.85 25 6.27 34 8.13 17 1.19 61 1.80 39 1.69 74 AA 6.54% Over/Under -4.19 -6.94 -7.09 2.65 -1.00 2.13 A 18.45% XXXXX BBB 26.22% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 BB 19.01% _ B 8.17% Templeton Global Bond Fund 1.44 2.62 6.61 -4.03 1.84 2.41 16.15 -2.21 13.00 19.21 Below B 0.00% FTSE WGBI TR -0.84 7.49 1.60 -3.57 -0.48 -4.00 1.65 6.35 5.17 2.55 Not Rated -2.88% Over/Under 2.28 -4.87 5.01 -0.46 2.32 6.41 14.50 -8.56 7.83 16.66 Fixed Income Sectors as of 6/30/19 5 Years Statistics Summary GOVERNMENT 58.66% Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking MUNICIPAL 0.00% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error CORPORATE 0.09% Anlzd SECURITIZED _ 0.00% Templeton Global Bond Fund 6.68% 1.42% -0.34 -27.46% -56.74% -0.02 9.64% -0.10 CASH & EQUIVALENTS 41.24% FTSE WGBI TR 5.35% 0.00% 1.00 100.00% 100.00% 0.16 0.00% -- DERIVATIVE 0.00%
Prepared by The Atlanta Consulting Group 49 University of West Florida Chartwell Short Dur High Yield As of September 30, 2019 Description: Universe Name: High Yield Bond MStar MF # of Observations: 196 (9/30/2019) The investment seeks income and long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in high Fund Information as of 7/31/19 CHARTWELL SHORT yield debt securities. High yield debt securities, also referred to as "junk" bonds, are securities rated below the Baa/BBB categories at Fund Name the time of purchase or, if unrated, determined to be of comparable credit quality by the fund's advisor. It may invest up to 20% of its DURATION HIGH YIELD assets in U.S. dollar denominated securities of issuers based outside of the U.S. Ticker CWFIX Morningstar Category High Yield Bond ICE BofAML US Corp and High Benchmark Yield 1-3 Yr Expense Ratio 0.49% Fund Assets ($mm) 78.77 Share Class Inception Date 7/15/2014 Manager Tenure 5
Fund Characteristics as of 7/31/19 Sharpe Ratio (3 Year) 1.32 Average Duration 1.40 Average Coupon 5.38% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank Average Effective Maturity 1.65 (%) (%) (%) (%) (%) (%)
_ R-Squared (3 Year) 0.46 Chartwell Short Dur High Yield 1.20 61 6.37 93 5.40 54 3.66 96 3.09 95 -- -- Alpha (3 Year) 0.01% ICE BofAML US Corp and Beta (3 Year) 1.33 1.00 74 4.75 96 5.22 59 2.95 99 2.67 99 3.25 99 High Yield 1-3 Yr Over/Under 0.20 1.62 0.18 0.71 0.42 Credit Quality as of 7/31/19 XXXXX AAA 1.65% AA 0.00% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 A 0.00% _ BBB 7.45% Chartwell Short Dur High Yield 0.36 3.39 7.62 -2.64 ------BB 84.50% ICE BofAML US Corp and High Yield 1-3 1.64 2.38 3.91 0.76 1.17 2.36 5.21 2.02 6.10 19.37 B 6.39% Yr Below B 0.00% Over/Under -1.28 1.01 3.71 -3.40 Not Rated 0.00% 3 Years Statistics Summary Down Mkt Fixed Income Sectors as of 7/31/19 Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio GOVERNMENT 0.00% Dev Alpha Ratio Anlzd Ratio Error Anlzd MUNICIPAL 0.00% _ CORPORATE 96.97% Chartwell Short Dur High Yield 1.82% -0.12% 1.28 125.98% 143.38% 1.20 1.35% 0.52 SECURITIZED 0.00% ICE BofAML US Corp and High 0.97% 0.00% 1.00 100.00% 100.00% 1.52 0.00% -- CASH & EQUIVALENTS 3.03% Yield 1-3 Yr
XXXXX DERIVATIVE 0.00%
Prepared by The Atlanta Consulting Group 50 University of West Florida Tortoise MLP & Pipeline Instl As of September 30, 2019
Description: Universe Name: Energy Limited Partnership Mstar MF The investment seeks total return. # of Observations: 35 (9/30/2019) The fund normally invests at least 80% of its net assets plus the amount of any borrowings for investment purposes in securities of MLPs and pipeline companies. The advisor intends to focus its investments primarily in equity securities of MLPs and pipeline companies that Fund Information as of 9/30/19 own and operate a network of energy infrastructure asset systems that transport, store, distribute, gather and/or process crude oil, refined TORTOISE MLP & PIPELINE Fund Name petroleum products (including biodiesel and ethanol), natural gas or natural gas liquids. It is non-diversified. INSTL Ticker TORIX Morningstar Category Energy Limited Partnership Benchmark Alerian MLP TR USD Expense Ratio 0.93% Fund Assets ($mm) 3,544.00 Share Class Inception Date 5/31/2011 Manager Tenure 6
Top Holdings as of 9/30/19 ONEOK INC 8.67% WILLIAMS COMPANIES INC 8.59% KINDER MORGAN INC CLASS P 8.15% CHENIERE ENERGY INC 7.56% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank TC ENERGY CORP 6.79% (%) (%) (%) (%) (%) (%) _ TARGA RESOURCES CORP 6.23% Tortoise MLP & Pipeline Instl -2.91 12 17.22 9 -2.42 6 -0.07 7 -3.81 4 -- -- ENBRIDGE INC 4.87% Alerian MLP TR USD -5.02 64 11.08 59 -8.13 57 -2.46 50 -8.65 82 6.25 -- PEMBINA PIPELINE CORP 4.73% Over/Under 2.11 6.14 5.71 2.39 4.84 PLAINS GP HOLDINGS LP CLASS A 4.45% ENERGY TRANSFER LP 4.15%
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 _ Sector Allocation as of 9/30/19 Tortoise MLP & Pipeline Instl -15.14 -1.03 42.12 -35.80 11.66 28.60 9.58 ------BASIC MATERIALS 0.12% Alerian MLP TR USD -12.42 -6.52 18.31 -32.59 4.80 27.58 4.80 13.88 35.85 76.41 COMMUNICATION SERVICES 0.00% Over/Under -2.72 5.49 23.81 -3.21 6.86 1.02 4.78 CONSUMER CYCLICAL 0.00% 50% Alerian/50% ML High Yield -7.04 0.39 18.24 -19.41 3.84 17.33 10.20 9.15 25.24 67.15 CONSUMER DEFENSIVE 0.00%
XXXXX ENERGY 99.88% 5 Years Statistics Summary FINANCIAL SERVICES 0.00% Down Mkt HEALTHCARE 0.00% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 0.00% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.00% _ TECHNOLOGY 0.00% Tortoise MLP & Pipeline Instl 18.90% 3.91% 0.89 100.69% 87.15% -0.25 8.09% 0.60 UTILITIES 0.00% Alerian MLP TR USD 19.27% 0.00% 1.00 100.00% 100.00% -0.50 0.00% --
Prepared by The Atlanta Consulting Group 51 University of West Florida Fund of Funds As of September 30, 2019
QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs (%) (%) (%) (%) (%) (%)
_ Fund of Funds 0.41 5.24 2.59 4.75 2.68 4.79 HFRI Fund of Funds Composite Index -0.82 5.29 0.08 3.18 1.96 2.68 Over/Under 1.23 -0.05 2.51 1.57 0.72 2.11 S&P 500 1.70 20.55 4.25 13.39 10.84 13.24
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
_ Fund of Funds 0.93 6.59 1.83 -1.58 4.02 13.55 9.22 -1.81 7.97 -- HFRI Fund of Funds Composite Index -4.02 7.77 0.51 -0.27 3.36 8.96 4.79 -5.72 5.70 11.47 Over/Under 4.95 -1.18 1.32 -1.31 0.66 4.59 4.43 3.91 2.27 S&P 500 -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 Since Inception Statistics Summary Up Mkt Cap Ratio Down Mkt Cap Anlzd Std Dev Anlzd Alpha Beta Sharpe Ratio Tracking Error Info Ratio Anlzd Ratio Anlzd
_ Fund of Funds 3.94% 2.74% 0.90 115.19% 69.33% 1.36 1.80% 1.33 HFRI Fund of Funds Composite Index 3.93% 0.00% 1.00 100.00% 100.00% 0.75 0.00% --
Prepared by The Atlanta Consulting Group 52 University of West Florida Ironwood International Ltd. As of September 30, 2019
QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs (%) (%) (%) (%) (%) (%)
_ Ironwood International Ltd. 0.41 5.24 2.59 5.10 3.66 5.91 HFRI FOF: Conservative Index -0.08 4.57 1.18 3.13 2.04 2.73 Over/Under 0.49 0.67 1.41 1.97 1.62 3.18
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
_ Ironwood International Ltd. 1.32 6.91 2.30 1.84 7.03 11.72 10.01 1.80 9.15 16.99 HFRI FOF: Conservative Index -0.87 4.12 1.89 0.37 3.14 7.70 4.22 -3.55 5.07 9.65 Over/Under 2.19 2.79 0.41 1.47 3.89 4.02 5.79 5.35 4.08 7.34
XXXXX
Since Inception Statistics Summary Up Mkt Cap Ratio Down Mkt Cap Anlzd Std Dev Anlzd Alpha Beta Sharpe Ratio Tracking Error Info Ratio Anlzd Ratio Anlzd
_ Ironwood International Ltd. 5.40% 1.32% 1.31 140.20% 108.07% 0.58 2.18% 0.93 HFRI FOF: Conservative Index 3.88% 0.00% 1.00 100.00% 100.00% 0.28 0.00% --
Prepared by The Atlanta Consulting Group 53 Ironwood Monthly Commentary July 2019
GENERAL COMMENTARY1
U.S. equity markets rose modestly in July. Gains were bolstered by the Federal Reserve, which lowered U.S. interest rates for the first time since 2008; trade negotiations, as tensions eased after the U.S. temporarily suspended additional tariffs on $300 billion of Chinese imports; and corporate earnings, which have largely beat analysts’ estimates for Q2 indicating fundamentals remain broadly intact. In U.S. corporate credit markets, both high-yield and investment-grade bonds ended July slightly higher as investors bid up yield-bearing assets. Outside of the U.S., equity markets in Europe ended the month flat-to-positive in local terms as political and policy-related uncertainty remained in focus. Notable progress was made in July, however, including the UK’s appointment of Boris Johnson as prime minister and the ECB’s nomination of Christine Lagarde from the IMF to replace Mario Draghi as its next president. Additionally, the ECB signaled it is prepared to take near-term stimulative measures, including cutting interest rates and potentially re- starting its bond buying program. In emerging markets, equity returns by country were mixed and EM indices ended July in negative territory overall. U.S. dollar strength, disappointing growth data out of China, and volatile oil prices contributed to EM’s losses.
For the month, the S&P 500 returned +1.4% while the Barclays Aggregate Bond Index and Barclays High-Yield Index finished +0.2% and +0.6%, respectively. Outside of the U.S., the EURO STOXX 50, MSCI Asia, and MSCI EM finished -0.1%, -0.4%, and -1.0%, respectively.
PORTFOLIO REVIEW2
Ironwood’s performance was positive in July. The best-performing sectors were market neutral & low net equity, where numerous industry sectors helped drive positive attribution, and relative value, where a variety of sub-strategies contributed to performance. Our second quarter letter, which was recently distributed, provides greater detail on how the portfolio is currently positioned. If you would like a copy of this letter, please contact Ironwood Investor Relations ([email protected]).
On August 1st, Ironwood added a new market neutral & low net equity manager to the portfolio. This manager seeks to generate attractive risk-adjusted alpha-based returns by combining its extensive industry knowledge, detailed research process, and sector-focused investing (technology & healthcare) approach. Ironwood’s investment in the manager complements our current objectives and views on opportunities, and increases our exposure to tightly-hedged, market- neutral equity strategies.
Ironwood’s relative value sector was positive for the month and the range of returns for these managers was +1.1% to -1.1%. Market neutral fundamental long/short equity, fixed income arbitrage, relative value macro, and systematic strategies were the largest contributors of positive attribution.
54 Ironwood’s market neutral & low net equity sector was positive for the month and the range of returns for managers within the sector was +2.4% to +0.9%. The sector’s multi-manager platforms, new quantitative market neutral manager, and single-strategy equity manager all generated positive performance in July. Leading industry sectors included consumer and technology. Statistical arbitrage and primary strategies were also profitable during the month.
Ironwood’s event driven sector was roughly flat for the month and the range of returns for managers within the sector was +0.2% to -0.3%. At the underlying position level, Gannett was a notable contributor in July as the stock traded up on news that the company was in advanced merger discussions with New Media Investment Group. Norwegian Cruise Line, which fell after lowering its forward guidance to reflect headwinds stemming from a recent ban on cruise travel to Cuba, was a notable position-level detractor in July.
Ironwood’s distressed & credit securities sector was negative for the month and the range of returns for managers within the sector was +0.2% to -0.7%. At the underlying position level, a notable contributor in July included Steinhoff International bonds, which traded up after the company announced better-than-expected operating results, appointed a new CFO, and approved an agreement with creditors to restructure Conforama, a subsidiary focused on home furnishings.
Please contact Ironwood Investor Relations ([email protected]) with any questions.
55 Ironwood Partners L.P. Monthly Performance and Allocation Summary July 2019 Performance Overview Assets Under Management 8/1/2019 JUL QTD YTD Fund ($ millions) Ironwood Partners L.P. 0.42% 0.42% 5.40% Ironwood International Ltd. 0.35% 0.35% 5.18% Ironwood Institutional Ltd. 0.36% 0.36% 5.17% Ironwood Partners L.P. 1,122 HFRI FOF: Conservative Index 0.10% 0.10% 4.74% Ironwood Insurance Fund 37 S&P 500 1.44% 1.44% 20.24% Ironwood Inst. Multi-Strategy Fund LLC 2,493 Barclays Aggregate Bond Index 0.22% 0.22% 6.35% Ironwood Capital Management $3,652
Sector Breakdown Percentage Performance Gross Attribution Sector Allocation JUL QTD YTD JUL QTD YTD Relative Value 41.34% 0.59% 0.59% 6.69% 0.23% 0.23% 2.69% Market Neutral & Low Net Equity 25.82% 1.46% 1.46% 8.79% 0.36% 0.36% 1.87% Event Driven 19.83% -0.06% -0.06% 6.03% -0.01% -0.01% 1.14% Distressed & Credit Securities 13.01% -0.32% -0.32% 4.18% -0.04% -0.04% 0.54% 100.00% 0.42% 0.42% 5.40% Return information shown is that of the Fund. Return information is unaudited and subject to change. Performance shown is net of all fees and expenses, including a 1.20% annual management fee and a 0.25% annual expense reimbursement. Sector performance information shown is net of fees payable to the underlying managers, but gross of fees and the expense reimbursement payable to Ironwood Capital Management as well as other expenses. Past performance is not indicative of future results. Depending on an investor's investment date, holding period, and other factors, an investor may have an overall investment experience that underperforms or outperforms that reflected herein. Strategy and Geographic Allocations
Emerging Portfolio Other Risk Arbitrage Markets Statistical Protection 7.2% 2.7% 2.9% Arbitrage 1.2% Private Securities 5.8% Europe 3.3% Event Equities 18.8% 6.0% Convertible Bond Arbitrage 1.2% Event Credit 5.7% Asia Distressed 8.2% Situations 10.6% United States Structured Credit Fundamental 70.1% 7.3% Market Neutral Equities 36.6%
Fixed Income & Interest Rates 12.4%
Top 10 Holdings as of 8/1/2019 Fund Structure and Terms Percentage Inception: January 1, 1996 Fund Allocation Fund Registration: 3(c)(7) Citadel Investment Group 13.1% Eligibility: Qualified Purchasers Millennium Management 9.7% ERISA Eligible: Yes Elliott Capital Advisors 9.5% Minimum Investment: $1,000,000 HG Vora Capital 9.4% Contributions: Monthly D.E. Shaw & Co. 8.4% Liquidity: Semi-annual on investment ann. with 95 days notice Silver Point Capital Management 7.0% Lock-up: One year soft lock-up (5% early withdrawal fee) Two Sigma Management 6.5% Tax Reporting: Schedule K-1 Suvretta Capital 6.2% Advisory Fees: 1.20% Cerberus Associates 5.3% Performance Fees: None Holocene Advisors 5.3% Certain Expenses: 0.25% annual expense reimbursement ALLOCATIONS ARE SUBJECT TO CHANGE AT IRONWOOD'S DISCRETION. Not for Public Distribution. Strategy and Geographic Allocations are calculated as a percent of the Fund’s portfolio. Top 10 Holdings are calculated as a percent of the Fund’s NAV. FOR USE WITH QUALIFIED PURCHASERS ONLY. Investing in securities involves risk, including loss of the principal amount invested. The information in this presentation is qualified in its entirety by the information included in the current private placement memorandum ("PPM") of the Fund. This is not an offer for sale of any interest in the Fund or any other fund managed by Ironwood Capital Management. Any offer will be made only by means of a PPM, which should be reviewed thoroughly prior to making any investment decision. See definitions and additional disclosures attached. 56 Ironwood Monthly Commentary August 2019
GENERAL COMMENTARY1
U.S. equity markets traded lower in August as fears of a global economic slowdown weakened demand for risk assets. As volatility in equity markets returned, investors rotated capital to perceived safe-haven assets such as U.S. Treasuries, pushing interest rates down in August. Notably, the 30-year Treasury yield fell roughly 0.5% and closed the month yielding less than 2.0% for the first time ever. In U.S. corporate credit markets, both investment-grade and high- yield bonds generated profits, with gains largely attributable to declining yields. Returns for investment-grade bonds outperformed high-yield bonds for the month, as weak U.S. manufacturing data, a sharp decline in the price of oil, and escalating trade tensions drove credit spreads on riskier bonds wider. Outside of the U.S., equity markets in Europe traded lower in August amid myriad headwinds facing the region. In emerging markets, equity markets experienced widespread losses in August. A number of idiosyncratic events, such as the unexpected election results in Argentina, as well as external factors, such as continued U.S. Dollar strength, trade uncertainty, and oil declines, weighed on risk assets across EM.
For the month, the S&P 500 returned -1.6% while the Barclays Aggregate Bond Index and Barclays High-Yield Index finished +2.6% and +0.4%, respectively. Outside of the U.S., the EURO STOXX 50, MSCI Asia, and MSCI EM finished -1.1%, -3.3%, and -2.5%, respectively.
PORTFOLIO REVIEW2
Ironwood’s performance was positive in August. The best-performing sectors included market neutral & low net equity, where every manager within the sector generated a positive return, and relative value, where a variety of sub-strategies contributed to performance.
Ironwood’s relative value sector was positive for the month and the range of returns for these managers was +1.4% to -0.3%. Market neutral fundamental long/short equity, fixed income arbitrage, relative value macro, and systematic strategies were the largest contributors of positive attribution.
Ironwood’s market neutral & low net equity sector was positive for the month and the range of returns for managers within the sector was +2.4% to +0.6%. The sector’s multi-manager platforms, quantitative market neutral manager, and single-strategy low-net equity manager all generated positive performance in August. Leading industry sectors included consumer and industrials. Statistical arbitrage and primary strategies were also profitable during the month.
Ironwood’s event driven sector was positive for the month and the range of returns for managers within the sector was +0.2% to +0.1%. At the underlying position level, notable contributors in August included RR Donnelley, which traded up after a large shareholder publically pushed for new directors and a dividend increase, and Sempra Energy, which reached a preliminary agreement with the Mexican government to increase the fees it receives on gas shipped through its pipelines.
57 Ironwood’s distressed & credit securities sector was negative for the month and the range of returns for managers within the sector was -0.8% to -2.5%. At the underlying position level, notable detractors in August included PG&E bonds, which traded down due to a ruling that increased the likelihood that the company will face additional liabilities, and Ditech Holdings, which declined after the bankruptcy judge denied the company’s reorganization proposal.
Please contact Ironwood Investor Relations ([email protected]) with any questions.
58 Ironwood Partners L.P. Monthly Performance and Allocation Summary August 2019 Performance Overview Assets Under Management 9/1/2019 AUG QTD YTD Fund ($ millions) Ironwood Partners L.P. 0.20% 0.62% 5.62% Ironwood International Ltd. 0.15% 0.50% 5.34% Ironwood Institutional Ltd. 0.16% 0.52% 5.34% Ironwood Partners L.P. 1,122 HFRI FOF: Conservative Index 0.28% 0.54% 5.23% Ironwood Insurance Fund 37 S&P 500 -1.58% -0.17% 18.34% Ironwood Inst. Multi-Strategy Fund LLC 2,530 Barclays Aggregate Bond Index 2.59% 2.82% 9.11% Ironwood Capital Management $3,689
Sector Breakdown Percentage Performance Gross Attribution Sector Allocation AUG QTD YTD AUG QTD YTD Relative Value 40.37% 0.36% 0.95% 7.07% 0.14% 0.38% 2.84% Market Neutral & Low Net Equity 27.88% 1.41% 2.89% 10.33% 0.38% 0.74% 2.28% Event Driven 19.31% 0.10% 0.04% 6.13% 0.02% 0.01% 1.16% Distressed & Credit Securities 12.44% -1.71% -2.03% 2.40% -0.21% -0.26% 0.31% 100.00% 0.20% 0.62% 5.62% Return information shown is that of the Fund. Return information is unaudited and subject to change. Performance shown is net of all fees and expenses, including a 1.20% annual management fee and a 0.25% annual expense reimbursement. Sector performance information shown is net of fees payable to the underlying managers, but gross of fees and the expense reimbursement payable to Ironwood Capital Management as well as other expenses. Past performance is not indicative of future results. Depending on an investor's investment date, holding period, and other factors, an investor may have an overall investment experience that underperforms or outperforms that reflected herein. Strategy and Geographic Allocations
Emerging Other Portfolio Risk Arbitrage Markets 6.6% Protection 2.7% Statistical 2.7% 1.1% Arbitrage Private Securities 6.4% Europe 3.5% 19.1% Event Equities Convertible Bond 5.5% Arbitrage 1.3% Event Credit 5.9% Asia Distressed 7.9% Situations 10.8% United States Fundamental 70.3% Structured Credit Market 7.7% Neutral Equities 36.1%
Fixed Income & Interest Rates 12.4%
Top 10 Holdings as of 9/1/2019 Fund Structure and Terms Percentage Inception: January 1, 1996 Fund Allocation Fund Registration: 3(c)(7) Citadel Investment Group 13.0% Eligibility: Qualified Purchasers Millennium Management 9.9% ERISA Eligible: Yes Elliott Capital Advisors 9.5% Minimum Investment: $1,000,000 HG Vora Capital 9.4% Contributions: Monthly D.E. Shaw & Co. 8.5% Liquidity: Semi-annual on investment ann. with 95 days notice Silver Point Capital Management 6.9% Lock-up: One year soft lock-up (5% early withdrawal fee) Two Sigma Management 6.5% Tax Reporting: Schedule K-1 Suvretta Capital 6.3% Advisory Fees: 1.20% Holocene Advisors 5.4% Performance Fees: None Cerberus Associates 5.2% Certain Expenses: 0.25% annual expense reimbursement ALLOCATIONS ARE SUBJECT TO CHANGE AT IRONWOOD'S DISCRETION. Not for Public Distribution. Strategy and Geographic Allocations are calculated as a percent of the Fund’s portfolio. Top 10 Holdings are calculated as a percent of the Fund’s NAV. FOR USE WITH QUALIFIED PURCHASERS ONLY. Investing in securities involves risk, including loss of the principal amount invested. The information in this presentation is qualified in its entirety by the information included in the current private placement memorandum ("PPM") of the Fund. This is not an offer for sale of any interest in the Fund or any other fund managed by Ironwood Capital Management. Any offer will be made only by means of a PPM, which should be reviewed thoroughly prior to making any investment decision. See definitions and additional disclosures attached.
59 Ironwood Monthly Commentary September 2019
GENERAL COMMENTARY1
U.S. equity markets were profitable in September even as growth concerns and escalating geopolitical tensions weighed on sentiment. Despite muted volatility for markets overall, a sharp rotation out of growth and into value stocks occurred under the surface. Sentiment in the U.S. improved in late September following the Federal Reserve’s decision to cut its target interest rate by 25 basis points for the second time this year. In corporate credit markets, investment-grade bonds generated a slightly negative return while high-yield bonds were modestly profitable. Outside of the U.S., equity markets in Europe traded higher in September, bolstered by accommodative central bank policies. In an effort to boost the region’s stalling economy, the European Central Bank restarted its quantitative easing program and reduced its short-term rates further into negative territory. In emerging markets, equity market returns varied by country, but produced a positive return overall. Several factors led to the dispersion in EM returns, including a drone attack in Saudi Arabia that created a short-term spike in oil prices; ongoing unrest in Hong Kong; and accommodative action by the People’s Bank of China which relaxed its reserve requirements for the third time this year.
For the month, the S&P 500 returned +1.9% while the Barclays Aggregate Bond Index and Barclays High-Yield Index finished -0.5% and +0.4%, respectively. Outside of the U.S., the EURO STOXX 50, MSCI Asia, and MSCI EM finished +4.3%, +3.2%, and +1.5%, respectively.
PORTFOLIO REVIEW2
Ironwood’s performance was roughly flat in September. Ironwood made money within our distressed & credit securities, relative value, and event driven sectors, but gains were offset by moderate losses sustained in our market neutral & low net equity sector. We will discuss our broader positioning and forward-looking views in greater detail in our third quarter letter.
Ironwood’s relative value sector was positive for the month and the range of returns for these managers was +2.0% to -0.9%. Fixed income arbitrage, relative value macro, and systematic strategies were the largest contributors of positive attribution.
Ironwood’s market neutral & low net equity sector was negative for the month and the range of returns for managers within the sector was +0.6% to -4.0%. The sector’s low-net equity manager drove the bulk of the negative attribution in September. Performance across our multi-manager platform, fundamental equity market neutral managers, and quantitative market neutral manager was mixed, but generated a slightly negative return overall. Detracting industry sectors included consumer and technology.
Ironwood’s event driven sector was positive for the month and the range of returns for managers within the sector was +0.8% to -0.1%. At the underlying position level, notable contributors in September included AT&T, which traded up after one of Ironwood’s managers disclosed an activist stake and outlined a number of value-creating opportunities for the telecommunications
60 company, and JPJ Group, which successfully completed its roughly £490 million acquisition of Gamesys.
Ironwood’s distressed & credit securities sector was positive for the month and the range of returns for managers within the sector was +2.9% to +0.4%. At the underlying position level, notable contributors in September included Ditech Holding, which traded higher after the company received court approval for its previously announced asset sale agreements with New Residential Investment and Mortgage Assets Management, and non-performing loans, where positive attribution was driven by a diversified portfolio of loans in Europe.
Please contact Ironwood Investor Relations ([email protected]) with any questions.
61 Ironwood Partners L.P. Monthly Performance and Allocation Summary September 2019 Performance Overview Assets Under Management 10/1/2019 SEP QTD YTD Fund ($ millions) Ironwood Partners L.P. -0.04% 0.59% 5.58% Ironwood International Ltd. -0.09% 0.41% 5.24% Ironwood Institutional Ltd. -0.08% 0.44% 5.25% Ironwood Partners L.P. 1,102 HFRI FOF: Conservative Index -0.21% -0.25% 4.39% Ironwood Insurance Fund 37 S&P 500 1.87% 1.70% 20.55% Ironwood Inst. Multi-Strategy Fund LLC 2,546 Barclays Aggregate Bond Index -0.53% 2.27% 8.53% Ironwood Capital Management $3,685
Sector Breakdown Percentage Performance Gross Attribution Sector Allocation SEP QTD YTD SEP QTD YTD Relative Value 40.45% 0.36% 1.31% 7.46% 0.14% 0.52% 2.99% Market Neutral & Low Net Equity 27.56% -1.09% 1.77% 9.12% -0.30% 0.44% 1.96% Event Driven 19.37% 0.36% 0.40% 6.51% 0.07% 0.08% 1.24% Distressed & Credit Securities 12.62% 1.47% -0.59% 3.91% 0.18% -0.07% 0.50% 100.00% -0.04% 0.59% 5.58% Return information shown is that of the Fund. Return information is unaudited and subject to change. Performance shown is net of all fees and expenses, including a 1.20% annual management fee and a 0.25% annual expense reimbursement. Sector performance information shown is net of fees payable to the underlying managers, but gross of fees and the expense reimbursement payable to Ironwood Capital Management as well as other expenses. Past performance is not indicative of future results. Depending on an investor's investment date, holding period, and other factors, an investor may have an overall investment experience that underperforms or outperforms that reflected herein. Strategy and Geographic Allocations
Emerging Other Portfolio Risk Arbitrage Markets 6.3% Protection 2.8% Statistical 2.7% 1.5% Arbitrage Private Securities 6.3% Europe 3.6% Event Equities 19.4% Convertible Bond 4.6% Arbitrage 1.5%
Event Credit 6.5% Asia Distressed 7.3% Situations 10.8% Fundamental United States Market 70.6% Structured Credit Neutral Equities 8.0% 35.4%
Fixed Income & Interest Rates 12.7%
Top 10 Holdings as of 10/1/2019 Fund Structure and Terms Percentage Inception: January 1, 1996 Fund Allocation Fund Registration: 3(c)(7) Citadel Investment Group 13.2% Eligibility: Qualified Purchasers Millennium Management 10.0% ERISA Eligible: Yes Elliott Capital Advisors 9.8% Minimum Investment: $1,000,000 HG Vora Capital 9.6% Contributions: Monthly D.E. Shaw & Co. 8.8% Liquidity: Semi-annual on investment ann. with 95 days notice Silver Point Capital Management 7.0% Lock-up: One year soft lock-up (5% early withdrawal fee) Two Sigma Management 6.5% Tax Reporting: Schedule K-1 Suvretta Capital 6.2% Advisory Fees: 1.20% Cerberus Associates 5.5% Performance Fees: None Holocene Advisors 5.5% Certain Expenses: 0.25% annual expense reimbursement ALLOCATIONS ARE SUBJECT TO CHANGE AT IRONWOOD'S DISCRETION. Not for Public Distribution. Strategy and Geographic Allocations are calculated as a percent of the Fund’s portfolio. Top 10 Holdings are calculated as a percent of the Fund’s NAV. FOR USE WITH QUALIFIED PURCHASERS ONLY. Investing in securities involves risk, including loss of the principal amount invested. The information in this presentation is qualified in its entirety by the information included in the current private placement memorandum ("PPM") of the Fund. This is not an offer for sale of any interest in the Fund or any other fund managed by Ironwood Capital Management. Any offer will be made only by means of a PPM, which should be reviewed thoroughly prior to making any investment decision. See definitions and additional disclosures attached. 62 Sector Definitions Distressed & Credit Securities: Distressed strategies involve the purchase or short sale of debt or equity securities of issuers experiencing financial distress. These securities may be attractive because of the market’s inaccurate assessment of the issuer’s future potential or the values and timing of recoveries. Managers may obtain voting rights or control blocks and actively participate in the bankruptcy or reorganization process while other investors may remain passive investors. Examples of distressed securities trades include bankruptcies, liquidations, post-restructured equities, structured credit, and balance sheet restructurings. Credit strategies involve a variety of strategies intended to exploit inefficiencies in the high-yield and related credit markets. Event Driven: Event-driven strategies involve the assessment of how, when, and if specific transactions will be completed and the effect on corporations and financial assets. A common event-driven strategy is merger arbitrage (also called risk arbitrage). This involves the purchase of the stock of a target company involved in a potential merger and, in the case of a stock-for-stock offer, the short sale of the stock of the acquiring company. The target company’s stock would typically trade at a discount to the offer price due to the uncertainty of the completion of the transaction. The positions may be reversed if the manager feels the acquisition may not close. This strategy aims to capture the spread between the value of the security at the close of the transaction and its discounted value at the time of purchase. Other examples of event-driven strategies and opportunities include corporate restructurings, spin-offs, operational turnarounds, activism, asset sales, and liquidations. Market Neutral & Low Net Equity: Market neutral and low net equity strategies involve the purchase of a stock or basket of stocks that is relatively underpriced as well as selling short a stock or basket of stocks that is relatively overpriced. Depending on the manager’s investment strategy, the determination of whether a stock is overpriced or underpriced can be made through fundamental analysis (a fundamental strategy) or by complex statistical models that examine numerous factors that affect the price of a stock (a quantitative strategy). Ironwood will utilize equity managers that target well-hedged and low net exposures and/or use a balanced approach to investing, i.e., they are short approximately the same dollar value of stocks they are long. Relative Value: Relative value strategies attempt to capture pricing anomalies between assets that for all economic purposes are identical. Relative value strategies capture these inefficiencies by utilizing a combination of assets including bonds, stocks, swaps, options, exchange traded funds, currencies, futures, etc. One such strategy is capital structure arbitrage which involves the purchase and short sale of different classes of securities of the same issuer where there is a relative mispricing between two classes of securities. An example of this strategy is the purchase of undervalued senior secured debt and the short sale of overvalued subordinated unsecured debt or common equity. Other examples of relative value strategies include fixed income arbitrage, relative value interest rates, convertible bond arbitrage, relative value energy and quantitative strategies. Strategy Definitions Convertible Bond Arbitrage: Involves purchasing a convertible bond and selling short a varying percentage (“delta hedge”) of the stock into which the bond is convertible. In the event that the price of the stock rises, the increase in value of the bond’s conversion option is anticipated to more than offset the loss in the short stock position. In the event that the price of the stock falls, the gain on the short stock position should more than offset the loss on the bond, because the value of the bond is anticipated not to fall below the price investors are willing to pay for the non-convertible debt of the issuer. Ironwood’s managers invest in the entire range of convertible bonds from “deep-in-the-money” bonds to “busted” bonds. Managers set up positions with hedges against numerous other factors including, but not limited to, interest rates, implied volatility, and credit risk. Distressed Situations: Involves the purchase or short sale of debt or equity securities of issuers experiencing financial distress. These securities may be attractive because of the market’s inaccurate assessment of the issuer’s future potential or the values and timing of recoveries. Managers may obtain voting rights or control blocks and actively participate in the bankruptcy/reorganization process, while others may remain passive investors. Event Credit: Exploits inefficiencies in credit securities (i.e. loans, bonds, CDS, etc.) derived from activities such as legal situations, covenant amendments, activist strategies, and corporate activity. Managers will initiate investments when they identify a defined catalyst or event that may impact the price of the security. Event Equities: Involves the purchase and/or sale of securities involved in corporate events such as restructurings, asset sales, proxy contests, and liquidations. Managers will generally enter these types of investments when they identify a specific theme or catalyst that may affect the price of an individual stock or situation. Fixed Income & Interest Rates: Strategies that deploy capital in the developed fixed income and interest-rate markets, focusing on liquid products including nominal and inflation-protected government bonds, interest-rate swaps, futures, and options. The strategies are primarily concentrated in developed markets, and combine macroeconomic analysis, quantitative modeling, and portfolio construction techniques. Fundamental Market Neutral Equities: Involves the purchase of a stock, or basket of stocks, that is relatively underpriced and selling short a stock, or basket of stocks, that is relatively overpriced. Depending on the manager’s investment strategy, the determination of whether a stock is overpriced/underpriced can be made through fundamental analysis or by complex statistical models that examine numerous factors that affect the price of a stock. Ironwood favors long/short managers who use a “dollar balanced” approach, i.e., they are short approximately the same dollar value of stocks that they are long. Portfolio Protection: A variety of strategies and positions intended to protect a manager’s portfolio against unusual market movements and tail risk events. These “protection trades” are intended to help protect trading strategies that should not otherwise be affected (i.e., are already hedged) but can come under pressure from market liquidations, abnormal volatility, and general macro risks. Protection strategies can include, but are not limited to, the use of options, futures, indices, exchange traded funds, credit default swaps, and certain individual corporate and sovereign securities. Private Securities: Involves an investment made in a company outside of the public markets. Managers will generally enter these types of investments when they discover a theme that cannot adequately be captured through public market investments. Managers may either make a passive investment or take a more active role in the management of the target company. Risk Arbitrage: Seeks to profit from the spread between the current and projected values of securities involved in a corporate event. The most common form of this strategy is merger arbitrage, which involves the purchase of the stock of a target company involved in a potential merger and, in the case of a stock-for-stock offer, the short sale of the stock of the acquiring company (positions may be reversed if the manager feels the acquisition may not close). The target’s stock typically trades at a discount to the offer price due to the uncertainty of the completion of the transaction. This strategy is largely dependent upon the manager’s ability to correctly analyze the outcome and completion date of a proposed transaction. Other examples of risk arbitrage trades include spin-offs, multi-share capital arbitrage, and tender offers.
63 Strategy Definitions Continued Statistical Arbitrage: Systematic trading strategies intended to exploit short- and long-term pricing inefficiencies between securities. Managers rely on mathematical models to identify the temporal convergence and/or divergence of price movements of a pair or basket of stocks. These highly technical strategies typically involve large numbers of securities, short holding periods, and substantial computational and trading activity. Structured Credit: Strategies that invest primarily in residential and commercial mortgage-backed securities (RMBS and CMBS), other non- mortgage related asset-backed securities (ABS), collateralized debt obligations, structured notes, and other structured products. The most common strategies involve long and short positions in RMBS, CMBS, ABS, and related derivatives and indices. Other: Certain other non-core strategies such as, but not limited to, energy trading, global rates, real estate, global macro, and reinsurance. Index Definitions Barclays Aggregate Bond Index: The Barclays Aggregate Bond Index, formerly the Lehman Brothers Aggregate Index, is an unmanaged, market- value-weighted index of taxable investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage backed securities, with maturities of one year or more. For more information, please visit www.barcap.com. HFRI FOF: Conservative Index: The HFRI FOF: Conservative Index is an equal-weighted index representing funds of funds that invest with multiple managers focused on consistent performance and lower volatility via absolute return strategies. The Index includes funds of funds tracked by Hedge Fund Research, Inc. The Index is a proxy for the performance of the universe of conservative funds of funds focused on absolute return strategies. Returns are net of fees and are denominated in USD. For more information, please visit www.hedgefundresearch.com. S&P 500: The S&P 500 Index includes 500 leading companies in leading industries of the U.S. economy, capturing 75% coverage of U.S. equities. It is intended as an indicator of large-cap public U.S. equities. For more information, please visit www.standardandpoors.com. Note: Index performance is shown for illustrative purposes only and does not represent the performance of any specific investment. Index returns do not include expenses, fees or charges, which would lower performance. The indices are unmanaged and an investor cannot invest directly in an index. In reviewing the performance of the Fund, investors should not consider any of the indices presented herein to be performance benchmarks. Additional Disclosures FOR QUALIFIED PURCHASERS ONLY, NOT FOR DISTRIBUTION TO THE PUBLIC. Returns of underlying managers cited are net of fees payable to the underlying managers, but gross of fees and the expense reimbursement payable to Ironwood Capital Management as well as other expenses. Before investing in the Fund, potential investors should review the detailed explanation of risks as well as other information in the Fund's Explanatory or Informational Memorandum (the "PPM"). Read the PPM carefully prior to investing. Interests in the fund are available only to persons willing and able to bear the economic risks of their investment for an indefinite period of time. Alternative investments (e.g., hedge funds or private equity investments) are complex instruments and may carry a very high degree of risk. Such risks include, among other things: (i) loss of all or a substantial portion of the investment due to the extensive use of short sales, derivatives and debt capital, (ii) incentives to make investments that are riskier or more speculative due to performance based compensation, (iii) lack of liquidity as there may be no secondary market for hedge fund and private equity interests and none is expected to develop, (iv) volatility of returns, (v) restrictions on transfer, (vi) potential lack of diversification and resulting higher risk due to concentration, (vii) higher fees and expenses associated that may offset profits, (viii) no requirement to provide periodic pricing or valuation information to investors, (ix) complex tax structures and delays in distributing important tax information, and (x) fewer regulatory requirements than registered funds. Hedge funds and private equity investments are intended only for investors who understand and accept the associated risks. This product may further include investments in emerging markets. Emerging markets are located in countries that possess one or more of the following characteristics: A certain degree of political instability, relatively unpredictable financial markets and economic growth patterns, a financial market that is still at the development stage or a weak economy. Emerging markets investments usually result in higher risks such as political risks, economical risks, credit risks, exchange rate risks, market liquidity risks, legal risks, settlement risks, market risks, shareholder risk and creditor risk. Investors should be aware that the value of investments can fall as well as rise and involve a high degree of risk. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they initially invested.
64 University of West Florida PIMCO Short-Term Instl As of September 30, 2019
Description: Universe Name: Ultrashort Bond MStar MF The investment seeks maximum current income, consistent with preservation of capital and daily liquidity. # of Observations: 71 (9/30/2019) The fund normally invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. "Fixed Income Fund Information as of 6/30/19 Instruments" include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private- Fund Name PIMCO SHORT-TERM INSTL sector entities. Ticker PTSHX Morningstar Category Ultrashort Bond Benchmark FTSE T-Bill 3 Months TR Expense Ratio 0.50% Fund Assets ($mm) 9,770.07 Share Class Inception Date 10/7/1987 Manager Tenure 9
Fund Characteristics as of 6/30/19 Sharpe Ratio (3 Year) 1.69 Average Duration 0.46 Average Coupon 2.91% Average Effective Maturity 1.20 R-Squared (3 Year) 0.06 Alpha (3 Year) 0.29% Beta (3 Year) -0.74 QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%)
_ PIMCO Short-Term Instl 0.73 23 2.30 65 1.95 95 2.37 12 1.96 11 1.85 22 Asset Allocation as of 6/30/19 FTSE T-Bill 3 Months TR 0.57 94 1.79 99 2.36 82 1.52 94 0.96 93 0.52 96 US Bond 48.56% Over/Under 0.16 0.51 -0.41 0.85 1.00 1.33 Non-US Bond 13.46% Convertible 0.48% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Cash 34.37%
_ PIMCO Short-Term Instl 1.51 2.43 2.57 1.37 0.97 0.84 3.44 0.35 1.93 9.44 Other 3.13% FTSE T-Bill 3 Months TR 1.86 0.84 0.27 0.03 0.03 0.05 0.07 0.08 0.13 0.17 Over/Under -0.35 1.59 2.30 1.34 0.94 0.79 3.37 0.27 1.80 9.27 Fixed Income Sectors as of 6/30/19 5 Years Statistics Summary GOVERNMENT 45.76% Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking MUNICIPAL 0.09% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error CORPORATE 12.86% Anlzd SECURITIZED 5.67% _ PIMCO Short-Term Instl 0.97% 1.64% 0.33 204.95% -- 1.07 0.98% 1.02 CASH & EQUIVALENTS 33.74% FTSE T-Bill 3 Months TR 0.26% 0.00% 1.00 100.00% -- 0.14 0.00% -- DERIVATIVE 1.87%
Prepared by The Atlanta Consulting Group 65 University of West Florida Foundation As of September 30, 2019
Investment Expense Analysis As Of 9/30/19 Median Expense Difference Fund v. Name Market Value % of Portfolio Expense Ratio Estimated Expense Universe Ratio Median Eagle Capital Management $10,541,366 11.3% 0.87% $91,710 0.73% 0.14% Large Cap MStar MF Vanguard 500 Index Admiral $11,073,561 11.9% 0.04% $4,429 0.73% -0.69% Large Cap MStar MF Conestoga Small Cap Investors $5,078,559 5.5% 1.10% $55,864 0.98% 0.12% Small Cap MStar MF Fuller & Thaler Behav Sm-Cp Eq Inst $4,800,587 5.2% 0.85% $40,805 0.98% -0.13% Small Cap MStar MF Dodge & Cox International Stock $6,350,448 6.8% 0.63% $40,008 0.84% -0.21% Foreign Large Blend MStar MF WCM Focused International Growth Instl $6,955,713 7.5% 1.03% $71,644 0.84% 0.19% Foreign Large Blend MStar MF T. Rowe Price International Discovery $5,935,518 6.4% 1.20% $71,226 1.11% 0.09% Foreign Small/Mid Blend Mstar MF DFA Emerging Markets Core Equity I $5,304,940 5.7% 0.52% $27,586 1.15% -0.63% Diversified Emerging Mkts MStar MF Barrow Hanley $5,807,102 6.2% 0.38% $21,777 0.45% -0.08% Intermediate Core Bond MStar MF Templeton Global Bond Fund $2,684,415 2.9% 0.69% $18,522 0.69% 0.00% World Bond MStar MF Chartwell Short Duration High Yield $2,923,459 3.1% 0.49% $14,325 0.73% -0.24% High Yield Bond MStar MF Tortoise MLP & Pipeline Instl $4,324,310 4.7% 0.93% $40,216 1.30% -0.37% Energy Limited Partnership Mstar MF Ironwood International Ltd. $9,019,471 9.7% 1.00% $90,195 Harbert US RE Fund V LP $1,013,846 1.1% 1.50% $15,208 Harbert US RE Fund VI LP $1,967,937 2.1% 1.50% $29,519 Harbert US RE Fund IV LP $45,391 0.0% 1.50% $681 Portfolio Advisors PE Offshore V $263,770 0.3% 0.88% $2,308 Portfolio Advisors PE VII $695,922 0.7% 0.88% $6,089 Portfolio Advisors Secondary Fund III, L.P. $1,193,806 1.3% 0.85% $10,147 StepStone Pioneer Capital III, L.P. $590,248 0.6% 1.00% $5,902 Portfolio Advisors Direct Credit II $665,870 0.7% 1.50% $9,988 Golub Capital Partners Intl 12 LP $400,000 0.4% PIMCO Short-Term Instl $5,301,149 5.7% 0.50% $26,506 0.36% 0.14% Ultrashort Bond MStar MF Cash $36,908 0.0% Total $92,974,297 100.0% 0.75% $694,655
XXXXX
Prepared by The Atlanta Consulting Group 66 University of West Florida Planned Giving As of September 30, 2019 Fiscal Year End: June Asset Allocation Current Current Balance Allocation
_ US Stock Large $865,183 28.3% Alger Capital Appreciation Instl I $271,108 8.9% Diamond Hill Large Cap A $292,715 9.6% Schwab® S&P 500 Index $301,360 9.9% US Stock Small $207,566 6.8% Conestoga Small Cap Investors $124,724 4.1% American Beacon Small Cp Val Inv $82,843 2.7% International $315,752 10.3% American Beacon Intl Equity Inv $143,847 4.7% Artisan International Investor $171,905 5.6% International Emerging Stocks $109,997 3.6% Harding Loevner Emerging Markets Advisor $109,997 3.6% US Fixed Income $1,037,277 33.9% JPMorgan Strategic Income Opports A $220,055 7.2% Virtus Seix Total Return Bond I $291,408 9.5% Schwab U.S. Aggregate Bond Index Fund $296,804 9.7% Western Asset Intermediate Bond $229,010 7.5% Alternative Investments $463,922 15.2% Blackrock Systematic Multi Strat A $222,337 7.3% DWS RREEF Real Assets S $241,585 7.9% Cash $56,670 1.9% Cash $56,670 1.9% Total $3,056,367 100.0%
XXXXX
Summary of Cash Flows Inception Third Quarter Year-To-Date One Year Three Years Five Years Ten Years 7/31/08 _ Beginning Market Value $3,013,591 $2,783,305 $3,074,009 $2,951,388 $142,136 $133,994 $125,597 Net Cash Flow $27,210 -$74,933 -$126,740 -$456,913 $2,297,728 $2,241,630 $2,250,132 Net Investment Change $15,567 $347,996 $109,098 $561,892 $616,503 $680,743 $680,638 Income $7,529 $24,777 $118,181 $277,217 $291,342 $319,951 $326,620 Ending Market Value $3,056,367 $3,056,367 $3,056,367 $3,056,367 $3,056,367 $3,056,367 $3,056,367 _
Prepared by The Atlanta Consulting Group 67 University of West Florida Planned Giving As of September 30, 2019 Fiscal Year End: June
Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs Inception Inception ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) Date
_ Planned Giving 3,056,367 100.00 0.77 0.51 12.57 3.87 4.93 6.43 4.56 5.75 Jul-08 Balanced Index 0.94 0.73 11.99 3.73 4.91 6.61 4.88 5.98 Jul-08 US Stock Large 865,183 28.31 Alger Capital Appreciation Instl I 271,108 8.87 -0.86 -1.15 20.29 1.09 12.72 15.34 -- 11.34 Nov-14 Russell 1000 Growth 0.01 1.49 23.30 3.71 14.45 16.89 13.39 12.77 Nov-14 Diamond Hill Large Cap A 292,715 9.58 3.02 0.98 22.02 5.38 7.77 11.81 -- 8.86 Nov-14 Russell 1000 Value 3.57 1.36 17.81 4.00 6.69 9.43 7.79 7.11 Nov-14 Schwab® S&P 500 Index 301,360 9.86 1.85 1.70 20.52 4.21 10.83 13.41 10.95 12.96 Dec-09 S&P 500 1.87 1.70 20.55 4.25 10.87 13.39 10.84 12.93 Dec-09 US Stock Small 207,566 6.79 Conestoga Small Cap Investors 124,724 4.08 -1.43 -3.69 18.86 -3.57 11.30 17.29 15.70 14.86 Dec-09 Russell 2000 2.08 -2.40 14.18 -8.89 2.47 8.23 8.19 11.47 Dec-09 American Beacon Small Cp Val Inv 82,843 2.71 5.40 -1.19 12.68 -10.89 -1.17 5.31 5.79 4.18 Jun-14 Russell 2000 2.08 -2.40 14.18 -8.89 2.47 8.23 8.19 6.41 Jun-14 International 315,752 10.33 American Beacon Intl Equity Inv 143,847 4.71 3.85 -2.32 9.25 -6.17 -2.47 4.02 1.34 4.03 Dec-09 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 0.26 6.33 2.90 4.31 Dec-09 Artisan International Investor 171,905 5.62 1.12 0.40 19.82 6.29 5.37 8.62 4.29 6.41 Dec-09 MSCI ACWI ex USA 2.57 -1.80 11.56 -1.23 0.26 6.33 2.90 4.31 Dec-09 International Emerging Stocks 109,997 3.60 Harding Loevner Emerging Markets Advisor 109,997 3.60 1.23 -3.50 12.11 0.73 -1.86 5.46 3.04 4.43 Dec-09 MSCI Emerging Markets 1.91 -4.25 5.90 -2.02 -1.42 5.97 2.33 2.76 Dec-09 US Fixed Income 1,037,277 33.94 JPMorgan Strategic Income Opports A 220,055 7.20 0.18 0.35 3.19 1.74 ------2.12 Nov-17 BBgBarc US Universal TR -0.43 2.12 8.80 10.07 4.39 3.23 3.62 4.52 Nov-17 Virtus Seix Total Return Bond I 291,408 9.53 -0.70 2.20 7.72 9.97 3.57 2.40 2.94 3.70 Dec-09 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 3.71 Dec-09 Schwab U.S. Aggregate Bond Index Fund 296,804 9.71 -0.54 2.29 8.50 10.21 4.32 -- -- 4.20 Apr-17 BBgBarc US Aggregate TR -0.53 2.27 8.52 10.30 4.38 2.92 3.38 4.28 Apr-17 Western Asset Intermediate Bond 229,010 7.49 -0.32 1.32 7.13 8.17 3.81 -- -- 4.32 Mar-17 BBgBarc US Govt/Credit Int TR -0.36 1.37 6.41 8.17 3.50 2.40 2.68 3.72 Mar-17
Prepared by The Atlanta Consulting Group 68 University of West Florida Planned Giving As of September 30, 2019 Fiscal Year End: June
Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs Inception Inception ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) Date
_ Alternative Investments 463,922 15.18 Blackrock Systematic Multi Strat A 222,337 7.27 0.99 1.37 ------1.48 Jun-19 ICE BofAML 91 Days T-Bills TR 0.18 0.56 1.81 2.39 1.99 1.54 0.98 0.58 Jun-19 DWS RREEF Real Assets S 241,585 7.90 1.19 1.49 17.07 9.19 6.84 5.56 -- 3.15 Nov-14 Morningstar Mod Tgt Risk TR USD 1.47 0.92 13.11 5.41 5.71 7.43 5.91 5.93 Nov-14 Cash 56,670 1.85 Cash 56,670 1.85
XXXXX - Balanced Index = Weighted Average of Russell 1000 Growth / Russell 1000 Value / S&P 500 / Russell 2000 / MSCI ACWI ex USA / MSCI Emerging Markets / BBgBarc US Universal TR / BBgBarc US Aggregate TR / BBgBarc US Govt/Credit Int TR / ICE BofAML 91 Days T-Bills TR / Morningstar Mod Tgt Risk TR USD / FTSE T-Bill 1 Month TR
Prepared by The Atlanta Consulting Group 69 University of West Florida Planned Giving As of September 30, 2019
RISK RETURN STATISTICS RISK RETURN STATISTICS 1 Year 3 Years Planned Giving Balanced Index Planned Giving Balanced Index RETURN SUMMARY STATISTICS RETURN SUMMARY STATISTICS Number of Periods 12 12 Number of Periods 36 36 Maximum Return 5.02 4.89 Maximum Return 5.02 4.89 Minimum Return -4.82 -4.82 Minimum Return -4.82 -4.82 Annualized Return 3.87 3.73 Annualized Return 6.43 6.61 Total Return 3.87 3.73 Total Return 20.56 21.15 Annualized Excess Return Annualized Excess Return 1.61 1.46 4.89 5.06 Over Risk Free Over Risk Free Annualized Excess Return 0.14 0.00 Annualized Excess Return -0.17 0.00
RISK SUMMARY STATISTICS RISK SUMMARY STATISTICS Beta 1.02 1.00 Beta 1.01 1.00 Upside Deviation 5.76 5.56 Upside Deviation 3.86 3.68 Downside Deviation 6.52 6.23 Downside Deviation 6.18 5.91
RISK/RETURN SUMMARY STATISTICS RISK/RETURN SUMMARY STATISTICS Annualized Standard Annualized Standard 10.47 10.27 6.60 6.49 Deviation Deviation Alpha 0.01 0.00 Alpha -0.02 0.00 Sharpe Ratio 0.15 0.14 Sharpe Ratio 0.74 0.78 Excess Return Over Market Excess Return Over Market 0.01 0.00 -0.03 0.00 / Risk / Risk Tracking Error 0.69 0.00 Tracking Error 0.63 0.00 Information Ratio 0.20 -- Information Ratio -0.27 --
CORRELATION STATISTICS CORRELATION STATISTICS R-Squared 1.00 1.00 R-Squared 0.99 1.00 Correlation 1.00 1.00 Correlation 1.00 1.00
Market Proxy: Balanced Index Market Proxy: Balanced Index Risk-Free Proxy: 91 Day T-Bills Risk-Free Proxy: 91 Day T-Bills
Prepared by The Atlanta Consulting Group 70 University of West Florida Planned Giving As of September 30, 2019
RISK RETURN STATISTICS RISK RETURN STATISTICS 5 Years Since Inception Planned Giving Balanced Index Planned Giving Balanced Index RETURN SUMMARY STATISTICS RETURN SUMMARY STATISTICS Number of Periods 60 60 Number of Periods 134 134 Maximum Return 5.02 4.89 Maximum Return 6.51 6.58 Minimum Return -4.82 -4.82 Minimum Return -10.09 -9.36 Annualized Return 4.56 4.88 Annualized Return 5.75 5.98 Total Return 24.98 26.92 Total Return 86.65 91.32 Annualized Excess Return Annualized Excess Return 3.59 3.91 5.25 5.48 Over Risk Free Over Risk Free Annualized Excess Return -0.32 0.00 Annualized Excess Return -0.23 0.00
RISK SUMMARY STATISTICS RISK SUMMARY STATISTICS Beta 0.97 1.00 Beta 1.00 1.00 Upside Deviation 4.11 4.20 Upside Deviation 5.00 4.79 Downside Deviation 5.17 5.17 Downside Deviation 7.17 6.60
RISK/RETURN SUMMARY STATISTICS RISK/RETURN SUMMARY STATISTICS Annualized Standard Annualized Standard 6.48 6.61 8.51 8.33 Deviation Deviation Alpha -0.02 0.00 Alpha -0.02 0.00 Sharpe Ratio 0.55 0.59 Sharpe Ratio 0.62 0.66 Excess Return Over Market Excess Return Over Market -0.05 0.00 -0.03 0.00 / Risk / Risk Tracking Error 0.78 0.00 Tracking Error 1.60 0.00 Information Ratio -0.41 -- Information Ratio -0.15 --
CORRELATION STATISTICS CORRELATION STATISTICS R-Squared 0.99 1.00 R-Squared 0.96 1.00 Correlation 0.99 1.00 Correlation 0.98 1.00
Market Proxy: Balanced Index Market Proxy: Balanced Index Risk-Free Proxy: 91 Day T-Bills Risk-Free Proxy: 91 Day T-Bills
Prepared by The Atlanta Consulting Group 71 University of West Florida - Planned Giving Alger Capital Appreciation Instl I As of September 30, 2019
Description: Universe Name: Large Growth MStar MF The investment seeks long-term capital appreciation. # of Observations: 332 (9/30/2019) The fund normally invests at least 85% of its net assets, plus any borrowings for investment purposes, in equity securities of companies of any market capitalization that the adviser believes demonstrate promising growth potential. Fund Information as of 8/31/19 ALGER CAPITAL Fund Name APPRECIATION INSTL I Ticker ALARX Morningstar Category Large Growth Benchmark Russell 1000 Growth Expense Ratio 1.15% Fund Assets ($mm) 2,076.62 Share Class Inception Date 11/8/1993 Manager Tenure 15
Top Holdings as of 8/31/19 MICROSOFT CORP 9.94% AMAZON.COM INC 8.69% VISA INC CLASS A 5.23% FACEBOOK INC A 4.72% SALESFORCE.COM INC 4.52% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs ALPHABET INC CLASS C 4.07% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) ADOBE INC 3.78% _ APPLE INC 3.39% Alger Capital Appreciation -1.15 71 20.29 65 1.09 65 15.26 49 11.63 53 13.71 50 ALIBABA GROUP HOLDING LTD ADR 3.18% Russell 1000 Growth 1.49 19 23.30 26 3.71 39 16.89 25 13.39 18 14.94 14 BOSTON SCIENTIFIC CORP 2.34% Over/Under -2.64 -3.01 -2.62 -1.63 -1.76 -1.23
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 8/31/19 _ BASIC MATERIALS 2.80% Alger Capital Appreciation -0.87 31.02 0.46 6.23 13.30 34.81 18.11 -1.03 13.48 49.12 COMMUNICATION SERVICES 0.72% Russell 1000 Growth -1.51 30.21 7.08 5.67 13.05 33.48 15.26 2.64 16.71 37.21 CONSUMER CYCLICAL 20.49% Over/Under 0.64 0.81 -6.62 0.56 0.25 1.33 2.85 -3.67 -3.23 11.91 CONSUMER DEFENSIVE 1.71% ENERGY 0.00% 5 Years Statistics Summary FINANCIAL SERVICES 12.54% Down Mkt HEALTHCARE 15.52% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 7.93% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 1.29%
_ Alger Capital Appreciation 13.69% -2.24% 1.04 98.87% 109.66% 0.78 3.12% -0.57 TECHNOLOGY 36.99% UTILITIES 0.00% Russell 1000 Growth 12.88% 0.00% 1.00 100.00% 100.00% 0.97 0.00% --
Prepared by The Atlanta Consulting Group 72 University of West Florida - Planned Giving Diamond Hill Large Cap A As of September 30, 2019
Description: Universe Name: Large Value MStar MF The investment seeks to provide long-term capital appreciation. # of Observations: 311 (9/30/2019) The fund normally invests at least 80% of its net assets in U.S. equity securities with large market capitalizations that the Adviser believes are undervalued. Large cap companies are defined as companies with market capitalizations at the time of purchase of $5 billion Fund Information as of 9/30/19 or greater, or in the range of those market capitalizations of companies included in the Russell 1000 Index at the time of purchase. The Fund Name DIAMOND HILL LARGE CAP A Adviser focuses on estimating a company's value independent of its current stock price. Ticker DHLAX Morningstar Category Large Value Benchmark Russell 1000 Value Expense Ratio 0.96% Fund Assets ($mm) 1,178.42 Share Class Inception Date 6/29/2001 Manager Tenure 17
Top Holdings as of 9/30/19 CITIGROUP INC 4.43% ABBOTT LABORATORIES 4.17% ALPHABET INC A 3.27% BERKSHIRE HATHAWAY INC B 3.22% METLIFE INC 3.03% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs MEDTRONIC PLC 2.90% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) TJX COMPANIES INC 2.89% _ AMERICAN INTERNATIONAL GROUP INC 2.88% Diamond Hill Large Cap A 0.98 69 22.02 5 5.38 26 11.77 11 9.49 10 11.72 28 UNITED TECHNOLOGIES CORP 2.81% Russell 1000 Value 1.36 57 17.81 39 4.00 36 9.43 60 7.79 42 11.46 35 PHILIP MORRIS INTERNATIONAL INC 2.74% Over/Under -0.38 4.21 1.38 2.34 1.70 0.26
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 3.43% Diamond Hill Large Cap A -9.88 19.95 14.26 -1.10 10.42 36.33 12.29 2.35 9.29 30.21 COMMUNICATION SERVICES 3.80% Russell 1000 Value -8.27 13.66 17.34 -3.83 13.45 32.53 17.51 0.39 15.51 19.69 CONSUMER CYCLICAL 17.06% Over/Under -1.61 6.29 -3.08 2.73 -3.03 3.80 -5.22 1.96 -6.22 10.52 CONSUMER DEFENSIVE 10.76% ENERGY 3.54% 5 Years Statistics Summary FINANCIAL SERVICES 28.53% Down Mkt HEALTHCARE 13.98% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 9.23% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.00%
_ Diamond Hill Large Cap A 13.18% 1.09% 1.08 111.99% 103.01% 0.65 3.06% 0.55 TECHNOLOGY 9.67% UTILITIES 0.00% Russell 1000 Value 11.92% 0.00% 1.00 100.00% 100.00% 0.58 0.00% --
Prepared by The Atlanta Consulting Group 73 University of West Florida - Planned Giving Schwab® S&P 500 Index As of September 30, 2019
Description: Universe Name: Large Cap MStar MF The investment seeks to track the total return of the S&P 500® Index. # of Observations: 1,005 (9/30/2019) The fund generally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in these stocks; typically, the actual percentage is considerably higher. It generally will seek to replicate the performance of the index by giving the Fund Information as of 9/30/19 same weight to a given stock as the index does. Fund Name SCHWAB® S&P 500 INDEX Ticker SWPPX Morningstar Category Large Blend Benchmark S&P 500 Expense Ratio 0.02% Fund Assets ($mm) 39,400.13 Share Class Inception Date 5/19/1997 Manager Tenure 7
Top Holdings as of 9/30/19 MICROSOFT CORP 4.26% APPLE INC 3.82% AMAZON.COM INC 2.89% FACEBOOK INC A 1.72% BERKSHIRE HATHAWAY INC B 1.64% JPMORGAN CHASE & CO 1.51% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank ALPHABET INC CLASS C 1.48% (%) (%) (%) (%) (%) (%) _ ALPHABET INC A 1.47% Schwab® S&P 500 Index 1.70 35 20.52 35 4.21 33 13.34 35 10.76 30 13.16 29 JOHNSON & JOHNSON 1.37% S&P 500 1.70 35 20.55 34 4.25 32 13.39 34 10.84 28 13.24 27 PROCTER & GAMBLE CO 1.25% Over/Under 0.00 -0.03 -0.04 -0.05 -0.08 -0.08
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 2.40% Schwab® S&P 500 Index -4.42 21.79 11.82 1.29 13.57 32.27 15.91 2.07 14.97 26.25 COMMUNICATION SERVICES 3.41% S&P 500 -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 CONSUMER CYCLICAL 11.76% Over/Under -0.04 -0.04 -0.14 -0.09 -0.12 -0.12 -0.09 -0.04 -0.09 -0.21 CONSUMER DEFENSIVE 8.12%
XXXXX ENERGY 4.52% 5 Years Statistics Summary FINANCIAL SERVICES 15.68% Down Mkt HEALTHCARE 13.57% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 10.39% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 3.22%
_ Schwab® S&P 500 Index 11.91% -0.06% 1.00 99.65% 100.02% 0.83 0.05% -1.48 TECHNOLOGY 23.33% UTILITIES 3.59% S&P 500 11.93% 0.00% 1.00 100.00% 100.00% 0.83 0.00% --
Prepared by The Atlanta Consulting Group 74 University of West Florida - Planned Giving Conestoga Small Cap Investors As of September 30, 2019
Description: Universe Name: Small Cap MStar MF The investment seeks long-term growth of capital. # of Observations: 526 (9/30/2019) Under normal market circumstances, the fund invests at least 80% of its net assets in equity securities of small-cap companies. Equity securities include American depositary receipts ("ADRs"), convertible securities, foreign and domestic common and preferred stocks, Fund Information as of 9/30/19 rights and warrants. CONESTOGA SMALL CAP Fund Name INVESTORS Ticker CCASX Morningstar Category Small Growth Benchmark Russell 2000 Expense Ratio 1.10% Fund Assets ($mm) 857.99 Share Class Inception Date 10/1/2002 Manager Tenure 17
Top Holdings as of 9/30/19 EXPONENT INC 4.29% THE DESCARTES SYSTEMS GROUP INC 3.61% CANTEL MEDICAL CORP 3.19% SIMPSON MANUFACTURING CO INC 2.98% OMNICELL INC 2.84% MESA LABORATORIES INC 2.82% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) TREX CO INC 2.77% _ NEOGEN CORP 2.69% Conestoga Small Cap Investors -3.69 75 18.86 24 -3.57 22 17.26 4 15.73 2 14.70 6 FOX FACTORY HOLDING CORP 2.63% Russell 2000 -2.40 57 14.18 60 -8.89 62 8.23 53 8.19 48 11.19 56 PROS HOLDINGS INC 2.57% Over/Under -1.29 4.68 5.32 9.03 7.54 3.51
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 8.38% Conestoga Small Cap Investors 0.61 28.44 14.06 8.03 -8.05 49.26 11.00 4.55 23.99 29.09 COMMUNICATION SERVICES 0.00% Russell 2000 -11.01 14.65 21.31 -4.41 4.90 38.82 16.35 -4.18 26.85 27.17 CONSUMER CYCLICAL 8.83% Over/Under 11.62 13.79 -7.25 12.44 -12.95 10.44 -5.35 8.73 -2.86 1.92 CONSUMER DEFENSIVE 5.07% XXXXX ENERGY 0.00% 5 Years Statistics Summary FINANCIAL SERVICES 0.00% Down Mkt HEALTHCARE 16.10% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error INDUSTRIALS 23.02% Anlzd REAL ESTATE 1.87% _ Conestoga Small Cap Investors 16.08% 8.29% 0.91 110.02% 78.22% 0.92 6.71% 1.12 TECHNOLOGY 36.74% UTILITIES 0.00% Russell 2000 16.16% 0.00% 1.00 100.00% 100.00% 0.45 0.00% --
Prepared by The Atlanta Consulting Group 75 University of West Florida - Planned Giving American Beacon Small Cp Val Inv As of September 30, 2019
Description: Universe Name: Small Cap MStar MF The investment seeks long-term capital appreciation and current income. # of Observations: 526 (9/30/2019) Under normal circumstances, at least 80% of the fund's net assets (plus the amount of any borrowings for investment purposes) are invested in equity securities of small market capitalization U.S. companies. These companies have market capitalizations of $5 billion or Fund Information as of 9/30/19 less at the time of investment. The fund's investments may include common stocks, real estate investment trusts ("REITs"), American AMERICAN BEACON SMALL Fund Name Depositary Receipts ("ADRs") and U.S. dollar-denominated foreign stocks traded on U.S. exchanges (collectively, "stocks"). CP VAL INV Ticker AVPAX Morningstar Category Small Value Benchmark Russell 2000 Expense Ratio 1.14% Fund Assets ($mm) 435.24 Share Class Inception Date 2/26/1999 Manager Tenure 21
Top Holdings as of 9/30/19 FUTURE ON RUSSELL 2000 DEC19 3.48% DIODES INC 1.14% PORTLAND GENERAL ELECTRIC CO 1.12% BROOKS AUTOMATION INC 0.98% SERITAGE GROWTH PROPERTIES CLASS A 0.96% ENSTAR GROUP LTD 0.94% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) VISHAY INTERTECHNOLOGY INC 0.86% _ AVNET INC 0.84% American Beacon Small Cp Val -1.19 38 12.68 73 -10.89 78 5.30 84 5.72 77 10.11 80 MGIC INVESTMENT CORP 0.80% Russell 2000 -2.40 57 14.18 60 -8.89 62 8.23 53 8.19 48 11.19 56 PROSPERITY BANCSHARES INC 0.76% Over/Under 1.21 -1.50 -2.00 -2.93 -2.47 -1.08
XXXXX Sector Allocation as of 9/30/19 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 _ BASIC MATERIALS 5.52% American Beacon Small Cp Val -15.89 8.34 26.36 -5.35 4.31 39.63 16.08 -4.41 25.67 34.94 COMMUNICATION SERVICES 0.06% Russell 2000 -11.01 14.65 21.31 -4.41 4.90 38.82 16.35 -4.18 26.85 27.17 CONSUMER CYCLICAL 16.57% Over/Under -4.88 -6.31 5.05 -0.94 -0.59 0.81 -0.27 -0.23 -1.18 7.77 CONSUMER DEFENSIVE 2.34% ENERGY 4.25% 5 Years Statistics Summary FINANCIAL SERVICES 26.96% Down Mkt HEALTHCARE 2.90% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error INDUSTRIALS 18.51% Anlzd REAL ESTATE 5.40% _ American Beacon Small Cp Val 17.07% -2.68% 1.03 96.06% 106.24% 0.28 4.02% -0.61 TECHNOLOGY 14.78% UTILITIES 2.70% Russell 2000 16.16% 0.00% 1.00 100.00% 100.00% 0.45 0.00% --
Prepared by The Atlanta Consulting Group 76 University of West Florida - Planned Giving American Beacon Intl Equity Inv As of September 30, 2019 Description: Universe Name: Foreign Large Blend MStar MF The investment seeks long-term capital appreciation. # of Observations: 198 (9/30/2019) The fund normally invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks and securities convertible into common stocks (collectively, "stocks") of issuers based in at least three different countries Fund Information as of 9/30/19 AMERICAN BEACON located outside the United States. It primarily invests in countries comprising the Morgan Stanley Capital International® Europe Fund Name Australasia and Far East Index ("MSCI EAFE Index"). The MSCI EAFE Index is comprised of equity securities of companies from INTERNATIONAL EQ INV various industrial sectors whose primary trading markets are located outside the United States. Ticker AAIPX Morningstar Category Foreign Large Value Benchmark MSCI ACWI ex USA Expense Ratio 1.07% Fund Assets ($mm) 215.12 Share Class Inception Date 8/1/1994 Manager Tenure 26
Top Holdings as of 9/30/19 MSCI EAFE DEC19 IFUS 20191220 4.53% SAMSUNG ELECTRONICS CO LTD 2.51% VOLKSWAGEN AG PARTICIPATING PREFERRED 2.02% NOVARTIS AG 2.00% BNP PARIBAS 1.82% SANOFI SA 1.74% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank TAKEDA PHARMACEUTICAL CO LTD 1.71% (%) (%) (%) (%) (%) (%) PRUDENTIAL PLC 1.68% _ American Beacon Intl Equity Inv -2.32 83 9.25 90 -6.17 94 4.03 85 1.00 95 3.97 87 BP PLC 1.64% VODAFONE GROUP PLC 1.62% MSCI ACWI ex USA -1.80 70 11.56 64 -1.23 31 6.33 25 2.90 63 4.46 74 Over/Under -0.52 -2.31 -4.94 -2.30 -1.90 -0.49
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 8.74% American Beacon Intl Equity Inv -16.64 24.40 -0.09 -2.08 -7.35 24.06 21.16 -11.90 6.42 29.39 COMMUNICATION SERVICES 7.61% MSCI ACWI ex USA -14.20 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 CONSUMER CYCLICAL 8.79% Over/Under -2.44 -2.79 -4.59 3.58 -3.48 8.77 4.33 1.81 -4.73 -12.06 CONSUMER DEFENSIVE 8.01% XXXXX ENERGY 9.46% 5 Years Statistics Summary FINANCIAL SERVICES 18.92% Down Mkt HEALTHCARE 11.10% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 15.58% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 2.65% _ TECHNOLOGY 6.58% American Beacon Intl Equity Inv 12.52% -1.80% 0.97 92.05% 103.09% 0.01 3.37% -0.56 UTILITIES 2.57% MSCI ACWI ex USA 12.48% 0.00% 1.00 100.00% 100.00% 0.16 0.00% --
Prepared by The Atlanta Consulting Group 77 University of West Florida - Planned Giving Artisan International Investor As of September 30, 2019 Description: Universe Name: Foreign Large Blend MStar MF The investment seeks maximum long-term capital growth. # of Observations: 198 (9/30/2019) The fund invests primarily in developed markets but also may invest up to 35% of the fund's total assets at market value at the time of purchase in emerging and less developed markets. Under normal market conditions, it is substantially fully invested in common Fund Information as of 9/30/19 ARTISAN INTERNATIONAL stocks and similar securities, and invests at least 65% of its net assets at market value at the time of purchase in securities of non- Fund Name U.S. companies. INVESTOR Ticker ARTIX Morningstar Category Foreign Large Growth Benchmark MSCI ACWI ex USA Expense Ratio 1.18% Fund Assets ($mm) 3,905.03 Share Class Inception Date 12/28/1995 Manager Tenure 24
Top Holdings as of 9/30/19 DEUTSCHE BOERSE AG 6.49% LINDE PLC 6.45% WIRECARD AG 5.07% NESTLE SA 4.19% AIR LIQUIDE SA 3.84% AIA GROUP LTD 3.60% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank AIRBUS SE 3.60% (%) (%) (%) (%) (%) (%) AON PLC 3.15% _ Artisan International Investor 0.40 8 19.82 2 6.29 1 8.61 3 4.08 11 6.77 6 DEUTSCHE POST AG 2.82% MSCI ACWI ex USA -1.80 70 11.56 64 -1.23 31 6.33 25 2.90 63 4.46 74 MEDTRONIC PLC 2.73% Over/Under 2.20 8.26 7.52 2.28 1.18 2.31
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 15.60% Artisan International Investor -10.86 31.02 -9.66 -3.85 -0.97 25.18 25.39 -7.26 5.91 39.77 COMMUNICATION SERVICES 0.00% MSCI ACWI ex USA -14.20 27.19 4.50 -5.66 -3.87 15.29 16.83 -13.71 11.15 41.45 CONSUMER CYCLICAL 4.79% Over/Under 3.34 3.83 -14.16 1.81 2.90 9.89 8.56 6.45 -5.24 -1.68 CONSUMER DEFENSIVE 6.92% XXXXX ENERGY 4.35% 5 Years Statistics Summary FINANCIAL SERVICES 31.84% Down Mkt HEALTHCARE 12.24% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 13.59% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.00% _ TECHNOLOGY 10.66% Artisan International Investor 12.15% 1.53% 0.88 91.09% 86.05% 0.26 5.48% 0.21 UTILITIES 0.00% MSCI ACWI ex USA 12.48% 0.00% 1.00 100.00% 100.00% 0.16 0.00% --
Prepared by The Atlanta Consulting Group 78 University of West Florida - Planned Giving Harding Loevner Emerging Markets Advisor As of September 30, 2019 Description: Universe Name: Diversified Emerging Mkts MStar MF The investment seeks long-term capital appreciation through investments in equity securities of companies based in emerging # of Observations: 236 (9/30/2019) markets. The Portfolio invests at least 80% of its net assets in emerging markets securities, which includes frontier markets securities, and Fund Information as of 9/30/19 investment companies. It invests at least 65% of its total assets in common stocks, preferred stocks, rights and warrants issued by HARDING LOEVNER companies that are based in emerging or frontier markets, securities convertible into such securities (including Depositary Receipts), Fund Name EMERGING MARKETS and investment companies that invest in the types of securities in which the Portfolio would normally invest. ADVISOR Ticker HLEMX Morningstar Category Diversified Emerging Mkts Benchmark MSCI Emerging Markets Expense Ratio 1.40% Fund Assets ($mm) 4,130.18 Share Class Inception Date 11/9/1998 Manager Tenure 21
Top Holdings as of 9/30/19 TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD 5.23% TENCENT HOLDINGS LTD 4.31% ALIBABA GROUP HOLDING LTD ADR 4.25% SAMSUNG ELECTRONICS CO LTD GDR 3.81% PJSC LUKOIL ADR 2.68% NOVATEK PJSC GDR 2.67% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) AIA GROUP LTD 2.63% _ SBERBANK OF RUSSIA PJSC ADR 2.62% Harding Loevner Emerging -3.50 53 12.11 23 0.73 51 5.45 48 3.00 33 4.90 27 HOUSING DEVELOPMENT FINANCE CORP LTD 2.45% MSCI Emerging Markets -4.25 73 5.90 73 -2.02 73 5.97 38 2.33 48 3.37 59 ENN ENERGY HOLDINGS LTD 2.22% Over/Under 0.75 6.21 2.75 -0.52 0.67 1.53
XXXXX
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ BASIC MATERIALS 0.00% Harding Loevner Emerging -18.72 35.22 13.20 -13.55 -1.66 4.18 22.73 -17.52 20.98 63.46 COMMUNICATION SERVICES 1.06% MSCI Emerging Markets -14.58 37.28 11.19 -14.92 -2.19 -2.60 18.22 -18.42 18.88 78.51 CONSUMER CYCLICAL 13.86% Over/Under -4.14 -2.06 2.01 1.37 0.53 6.78 4.51 0.90 2.10 -15.05 CONSUMER DEFENSIVE 9.16% XXXXX ENERGY 8.55% 5 Years Statistics Summary FINANCIAL SERVICES 28.18% Down Mkt HEALTHCARE 1.23% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio INDUSTRIALS 6.45% Dev Alpha Ratio Anlzd Ratio Error Anlzd REAL ESTATE 0.00% _ TECHNOLOGY 29.23% Harding Loevner Emerging 15.27% 0.80% 0.94 96.69% 94.88% 0.14 4.31% 0.16 UTILITIES 2.29% MSCI Emerging Markets 15.56% 0.00% 1.00 100.00% 100.00% 0.09 0.00% --
Prepared by The Atlanta Consulting Group 79 University of West Florida - Planned Giving JPMorgan Strategic Income Opports A As of September 30, 2019
Description: Universe Name: Nontraditional Bond MStar MF The investment seeks high total return. # of Observations: 94 (9/30/2019) The fund has an absolute return orientation which means that it is not managed relative to an index. It has flexibility to allocate its assets among a broad range of fixed income securities and derivatives as well as in a single or limited number of strategies/sectors Fund Information as of 9/30/19 including cash, money market instruments and short-term investments. The fund may invest up to 100% of its total assets in JPMORGAN STRATEGIC Fund Name securities that are rated below investment grade or the unrated equivalent. INCOME OPPORTS A Ticker JSOAX Morningstar Category Nontraditional Bond Benchmark BBgBarc US Universal TR Expense Ratio 1.04% Fund Assets ($mm) 1,123.49 Share Class Inception Date 10/10/2008 Manager Tenure 11
Fund Characteristics as of 9/30/19 Sharpe Ratio (3 Year) 0.80 Average Duration 0.37 Average Coupon 3.76% Average Effective Maturity 4.02 R-Squared (3 Year) 0.00 QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank Alpha (3 Year) 0.21% (%) (%) (%) (%) (%) (%) Beta (3 Year) 0.02 _ JPMorgan Strategic Income 0.35 76 3.19 84 1.74 84 2.63 71 2.47 67 3.03 64 Opports A Credit Quality as of 9/30/19 BBgBarc US Universal TR 2.12 6 8.80 11 10.07 4 3.23 59 3.62 25 4.14 38 AAA 51.16% AA 3.90% Over/Under -1.77 -5.61 -8.33 -0.60 -1.15 -1.11 A 14.98% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 BBB 10.38% _ BB 4.84% JPMorgan Strategic Income Opports A 0.43 3.08 8.92 -2.37 -0.14 2.78 7.82 -0.28 5.06 18.68 B 0.00% BBgBarc US Universal TR -0.26 4.09 3.91 0.43 5.56 -1.35 5.53 7.40 7.16 8.60 Below B 14.74% Over/Under 0.69 -1.01 5.01 -2.80 -5.70 4.13 2.29 -7.68 -2.10 10.08 Not Rated 0.00%
5 Years Statistics Summary Fixed Income Sectors as of 9/30/19 Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking GOVERNMENT 4.16% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error MUNICIPAL 0.00% Anlzd CORPORATE 33.17% _ JPMorgan Strategic Income SECURITIZED 18.50% 2.27% 2.08% 0.11 43.77% 7.68% 0.69 3.40% -0.34 Opports A CASH & EQUIVALENTS 44.11% BBgBarc US Universal TR 2.87% 0.00% 1.00 100.00% 100.00% 0.94 0.00% -- DERIVATIVE 0.07%
Prepared by The Atlanta Consulting Group 80 University of West Florida - Planned Giving Virtus Seix Total Return Bond As of September 30, 2019
Description: Universe Name: Intermediate Core Bond MStar MF The investment seeks to maximize long term total return through a combination of current income and capital appreciation, consistent # of Observations: 120 (9/30/2019) with capital preservation. The fund invests in various types of income-producing debt securities including mortgage- and asset-backed securities, government Fund Information as of 9/30/19 and agency obligations, corporate obligations and floating rate loans. It normally invests at least 80% of its net assets (plus any VIRTUS SEIX TOTAL RETURN Fund Name borrowings for investment purposes) in fixed income securities. BOND I Ticker SAMFX Morningstar Category Intermediate Core-Plus Bond Benchmark BBgBarc US Aggregate TR Expense Ratio 0.46% Fund Assets ($mm) 256.73 Share Class Inception Date 12/30/1997 Manager Tenure 18
Fund Characteristics as of 9/30/19 Sharpe Ratio (3 Year) 0.26 Average Duration 5.79 Average Coupon 3.13% Average Effective Maturity 9.28 R-Squared (3 Year) 0.94 Alpha (3 Year) -0.05% Beta (3 Year) 1.00 QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) Credit Quality as of 9/30/19 _ Virtus Seix Total Return Bond 2.20 57 7.72 73 9.97 56 2.38 82 2.94 78 3.70 64 AAA 83.89% BBgBarc US Aggregate TR 2.27 39 8.52 46 10.30 37 2.92 47 3.38 32 3.75 59 AA 3.50% Over/Under -0.07 -0.80 -0.33 -0.54 -0.44 -0.05 A 6.02% BBB 6.59% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 BB 0.00% _ B 0.00% Virtus Seix Total Return Bond -0.32 2.67 3.09 0.19 6.38 -3.04 4.96 9.79 6.49 7.22 Below B 0.00% BBgBarc US Aggregate TR 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54 5.93 Not Rated 0.00% Over/Under -0.33 -0.87 0.44 -0.36 0.41 -1.02 0.75 1.95 -0.05 1.29 Fixed Income Sectors as of 9/30/19 5 Years Statistics Summary GOVERNMENT 42.55% Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking MUNICIPAL 0.00% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error CORPORATE 12.23% Anlzd SECURITIZED 36.99% _ Virtus Seix Total Return Bond 3.19% -0.47% 1.01 92.84% 101.04% 0.63 0.75% -0.58 CASH & EQUIVALENTS 2.05% BBgBarc US Aggregate TR 3.08% 0.00% 1.00 100.00% 100.00% 0.80 0.00% -- DERIVATIVE 6.18%
Prepared by The Atlanta Consulting Group 81 University of West Florida - Planned Giving Schwab U.S. Aggregate Bond Index Fund As of September 30, 2019
Description: Universe Name: Intermediate Core Bond MStar MF The investment seeks to track as closely as possible, before fees and expenses, the total return of an index composed of the total # of Observations: 120 (9/30/2019) U.S. investment grade bond market. The fund generally invests at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in Fund Information as of 9/30/19 securities included in the Bloomberg Barclays U.S. Aggregate Bond Index. The index is a broad-based benchmark measuring the SCHWAB US AGGREGATE Fund Name performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, BOND INDEX mortgage pass-through securities, commercial MBS, and ABS that are publicly available for sale in the United States. Ticker SWAGX Morningstar Category Intermediate Core Bond Benchmark BBgBarc US Aggregate TR Expense Ratio 0.04% Fund Assets ($mm) 3,017.05 Share Class Inception Date 2/23/2017 Manager Tenure 3
Fund Characteristics as of 9/30/19 Sharpe Ratio (3 Year) Average Duration 5.76 Average Coupon 3.27% Average Effective Maturity 7.86 R-Squared (3 Year) Alpha (3 Year) Beta (3 Year) QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) Credit Quality as of 9/30/19 _ Schwab U.S. Aggregate Bond 2.29 35 8.50 47 10.21 41 ------AAA 73.28% AA 2.90% BBgBarc US Aggregate TR 2.27 39 8.52 46 10.30 37 2.92 47 3.38 32 3.75 59 A 10.29% Over/Under 0.02 -0.02 -0.09 BBB 13.53% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 BB 0.00% _ B 0.00% Schwab U.S. Aggregate Bond -0.13 ------Below B 0.00% BBgBarc US Aggregate TR 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54 5.93 Not Rated 0.00% Over/Under -0.14 Fixed Income Sectors as of 9/30/19 Fund Inception Statistics Summary GOVERNMENT 43.22% Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking MUNICIPAL 0.61% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error CORPORATE 24.37% Anlzd SECURITIZED 28.55% _ Schwab U.S. Aggregate Bond 3.10% -0.05% 0.99 98.65% 100.08% 0.81 0.16% -0.55 CASH & EQUIVALENTS 3.24% BBgBarc US Aggregate TR 3.12% 0.00% 1.00 100.00% 100.00% 0.84 0.00% -- DERIVATIVE 0.00%
Prepared by The Atlanta Consulting Group 82 University of West Florida - Planned Giving Western Asset Intermediate Bond As of September 30, 2019
Description: Universe Name: Intermediate Core Bond MStar MF The investment seeks to maximize total return, consistent with prudent investment management and liquidity needs. # of Observations: 120 (9/30/2019) The fund invests in a portfolio of fixed income securities of various maturities and, under normal market conditions, will invest at least 80% of its net assets in debt and fixed income securities. Although it may invest in debt and fixed income securities of any maturity, Fund Information as of 9/30/19 under normal market conditions the target dollar-weighted average effective duration for the fund, as estimated by the fund's WESTERN ASSET Fund Name subadviser, is expected to range within 20% of the duration of its benchmark. INTERMEDIATE BOND I Ticker WATIX Morningstar Category Intermediate Core Bond Benchmark BBgBarc US Govt/Credit Int TR Expense Ratio 0.54% Fund Assets ($mm) 663.58 Share Class Inception Date 7/1/1994 Manager Tenure 10
Fund Characteristics as of 9/30/19 Sharpe Ratio (3 Year) 0.69 Average Duration 4.31 Average Coupon 3.49% Average Effective Maturity 7.85 R-Squared (3 Year) 0.91 QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Alpha (3 Year) 0.07% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) Beta (3 Year) 0.93
_ Western Asset Interm Bond 1.32 88 7.13 79 8.17 81 3.09 33 3.33 40 4.13 35 Credit Quality as of 9/30/19 BBgBarc US Govt/Credit Int 1.37 84 6.41 82 8.17 81 2.40 82 2.68 90 3.05 88 AAA 53.69% TR AA 8.85% Over/Under -0.05 0.72 0.00 0.69 0.65 1.08 A 21.73% BBB 17.05% 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
_ BB 0.46% Western Asset Interm Bond 0.20 4.02 3.15 1.50 3.88 -0.78 7.10 5.35 8.76 17.24 B 0.00% BBgBarc US Govt/Credit Int TR 0.88 2.14 2.08 1.07 3.13 -0.86 3.89 5.80 5.89 5.24 Below B 0.00% Over/Under -0.68 1.88 1.07 0.43 0.75 0.08 3.21 -0.45 2.87 12.00 Not Rated -1.78%
5 Years Statistics Summary Fixed Income Sectors as of 9/30/19 Down Mkt GOVERNMENT 31.04% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio MUNICIPAL 0.05% Dev Alpha Ratio Anlzd Ratio Error Anlzd CORPORATE 34.83%
_ SECURITIZED 29.35% Western Asset Interm Bond 2.23% 0.84% 0.93 108.17% 83.75% 1.08 0.74% 0.89 CASH & EQUIVALENTS 4.69% BBgBarc US Govt/Credit Int 2.26% 0.00% 1.00 100.00% 100.00% 0.78 0.00% -- TR DERIVATIVE 0.05%
XXXXX
Prepared by The Atlanta Consulting Group 83 University of West Florida - Planned Giving Blackrock Systematic Multi Strat A As of September 30, 2019
Description: Universe Name: Multialternative MStar MF The investment seeks total return comprised of current income and capital appreciation. # of Observations: 103 (9/30/2019) The fund seeks to achieve its investment objective by investing in a range of global asset classes, with a focus on fixed and floating rate debt securities and equity securities. It will normally invest in both U.S. and non-U.S. securities, including securities of companies located Fund Information as of 9/30/19 in emerging markets. BLACKROCK SYSTEMATIC Fund Name MULTI-STRAT INV A Ticker BAMBX Morningstar Category Multialternative Benchmark ICE BofAML 91 Days T-Bills TR Expense Ratio 1.21% Fund Assets ($mm) 72.06 Share Class Inception Date 5/19/2015 Manager Tenure 4
Top Holdings as of 9/30/19 UNITED STATES TREASURY NOTES 1.5% 4.42% UNITED STATES TREASURY NOTES 1.88% 3.14% UNITED STATES TREASURY NOTES 1.88% 2.24% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs FEDERAL HOME LOAN MORTGAGE CORPORATION 4.5% 1.69% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) COMM MTG TR 2014-TWC 2.86% 0.94% _ AVANT LOANS FUNDING TRUST 2.72% 0.89% Blackrock Systematic Multi 1.37 29 8.81 27 9.73 3 6.36 11 ------FEDERAL HOME LOAN MORTGAGE CORPORATION 3.5% 0.77% Strat ALTRIA GROUP INC 0.74% ICE BofAML 91 Days T-Bills 0.56 51 1.81 82 2.39 37 1.54 68 0.98 79 0.54 99 FEDERAL HOME LOAN MORTGAGE CORPORATION 3.5% 0.73% TR UNITED STATES TREASURY NOTES 2.38% 0.71% Over/Under 0.81 7.00 7.34 4.82
XXXXX 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ Blackrock Systematic Multi Strat 1.51 9.72 5.61 ------BASIC MATERIALS 6.11% ICE BofAML 91 Days T-Bills TR 1.87 0.86 0.33 0.05 0.03 0.07 0.11 0.10 0.13 0.21 COMMUNICATION SERVICES 1.08% CONSUMER CYCLICAL 20.21% Over/Under -0.36 8.86 5.28 CONSUMER DEFENSIVE 9.44% 3 Years Statistics Summary ENERGY 9.15% FINANCIAL SERVICES 10.65% Down Mkt Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking HEALTHCARE 7.73% Beta Cap Ratio Info Ratio Dev Alpha Ratio Anlzd Ratio Error Anlzd INDUSTRIALS 13.58% _ REAL ESTATE 5.10% Blackrock Systematic Multi Strat 2.76% 2.34% 2.60 412.20% -- 1.77 2.72% 1.77 TECHNOLOGY 9.20% ICE BofAML 91 Days T-Bills 0.22% 0.00% 1.00 100.00% -- 0.28 0.00% -- UTILITIES 7.74% TR
Prepared by The Atlanta Consulting Group 84 University of West Florida - Planned Giving DWS RREEF Real Assets S As of September 30, 2019
Description: Universe Name: Multialternative MStar MF The investment seeks total return in excess of inflation through capital growth and current income. # of Observations: 103 (9/30/2019) The fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in a combination of investments that the Advisor believes offer exposure to "real assets." It generally invests between 25% and 75% of fund assets in Fund Information as of 9/30/19 securities of foreign issuers, including up to 10% of fund assets in issuers located in countries with new or emerging markets. Fund Name DWS RREEF REAL ASSETS S Ticker AAASX Morningstar Category World Allocation Morningstar Mod Tgt Risk TR Benchmark USD Expense Ratio 1.07% Fund Assets ($mm) 257.95 Share Class Inception Date 7/30/2007 Manager Tenure 5
Top Holdings as of 9/30/19 CAYMAN REAL ASSETS FUND LTD. 8.82% AMERICAN TOWER CORP 2.70% CROWN CASTLE INTERNATIONAL CORP 2.55% UNITED STATES TREASURY NOTES 1.38% 2.03% QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs TC ENERGY CORP 2.00% Rank Rank Rank Rank Rank Rank (%) (%) (%) (%) (%) (%) UNITED STATES TREASURY NOTES 1.62% 1.95%
_ DWS RREEF Real Assets 1.49 24 17.07 1 9.19 3 6.92 4 3.69 15 4.48 28 CHENIERE ENERGY INC 1.47% SEVERN TRENT PLC 1.47% Morningstar Mod Tgt Risk TR 0.92 35 13.11 4 5.41 17 7.43 3 5.91 2 7.51 2 USD SEMPRA ENERGY 1.31% GOLD 100 OZ DEC19 1.30% Over/Under 0.57 3.96 3.78 -0.51 -2.22 -3.03
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Sector Allocation as of 9/30/19 _ DWS RREEF Real Assets -5.17 14.83 4.20 -9.66 3.32 0.91 9.52 -3.09 12.45 25.81 BASIC MATERIALS 8.33% Morningstar Mod Tgt Risk TR USD -4.76 14.66 8.57 -1.79 4.89 14.31 12.04 0.59 12.33 21.77 COMMUNICATION SERVICES 1.38% Over/Under -0.41 0.17 -4.37 -7.87 -1.57 -13.40 -2.52 -3.68 0.12 4.04 CONSUMER CYCLICAL 0.97% CONSUMER DEFENSIVE 1.14% 5 Years Statistics Summary ENERGY 17.47% Down Mkt FINANCIAL SERVICES 0.00% Anlzd Std Anlzd Up Mkt Cap Sharpe Tracking Beta Cap Ratio Info Ratio HEALTHCARE 0.00% Dev Alpha Ratio Anlzd Ratio Error Anlzd INDUSTRIALS 10.44% _ REAL ESTATE 41.12% DWS RREEF Real Assets 7.72% -1.63% 0.90 79.66% 97.32% 0.36 4.66% -0.48 TECHNOLOGY 0.90% Morningstar Mod Tgt Risk TR 6.87% 0.00% 1.00 100.00% 100.00% 0.73 0.00% -- UTILITIES 18.25% USD
Prepared by The Atlanta Consulting Group 85 University of West Florida Planned Giving As of September 30, 2019
Universe Name: InvMetrics Trust Funds Balanced Net AUM Band All # of Observations: 47 (9/30/2019) Median/Average/Total Member MV: 21.7 M / 60.6 M / 2,788.4 M
Prepared by The Atlanta Consulting Group 86 University of W Florida Foundation - Univ of W Fl CGA Seg Res Portfolio Snapshot as of 10/9/2019
Charitable Gift Annuity Summary
IPS Monitor Total Number of Active CGAs Unique Donors 60% 12 4 50%
Total Gift Amount Average Gift Amount 40% 34.7% 34.4%
$3,240,000 $270,000 30%
20% New Gift(s) Total (1 Year) Terminated Gift(s) Total (1 Year) 13.9% 15.3% $80,000 $0 10% 1.7% 0% Domestic International Fixed Income Alternative Cash & Market Value Annual Annuity Equities Equities Equivalents $3,020,503 $189,530 Actual Target Lower Limit Upper Limit
CGA Breakdown
Donor Age & Gift Amount Active CGA History 3 $3500K 14
$3000K 12
$2500K 2 10 $2000K 8
$1500K 6 1 $1000K 4 $500K 2 2 0 $0K 1 1111 1 <75 75-80 80-85 85-90 90-95 95+ 00 0 0 Unique Donors Market Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
State Reserve Requirements and Healthcheck
Reserve Requirement Annual Return 1 Year 5 Year 10 Year
Portfolio $3,020,503 -10% $2,556,746 $1,094,817 -$87,053
-6% $2,661,679 $1,420,913 $230,742
FL $1,846,072 $184,607 0% $2,830,973 $2,072,853 $1,125,203
6% $3,007,990 $2,949,966 $2,855,571
$0 10% $3,126,057 $3,664,922 $4,702,765
$0K $500K $1000K $1500K $2000K $2500K $3000K $3500K * Return assumptions are based off quarterly annuity payments and investment returns. Return Reserve Required Surplus Market Value assumptions do not include any new or terminated gifts over the timeperiod.
87 University of West Florida As of September 30, 2019
Aggregated Account Summary
Strategic Current Current Target Percent Asset Category Value Percent Allocation Variance Domestic Equities $1,099,226 34.1% 35.0% (0.9%) International Equities $435,465 13.5% 15.0% (1.5%) Fixed Income $1,140,318 35.4% 32.0% 3.4% Alternative $481,253 14.9% 13.0% 1.9% Cash & Equivalents $68,336 2.1% 5.0% (2.9%) Total $3,224,598 100.0% 100.0%
6/30/19 Net 9/30/19 Account Name Account Type Value Contributions Withdrawals Investment Gain Value University of West Florida Seg Res CGA $3,013,591 $80,000 ($52,790) $15,567 $3,056,367 University of West Florida - Zimmers NIM CRUT $123,602 $0 ($624) $1,761 $124,739 University of West Florida - Hugh NIM CRUT $43,324 $0 ($479) $647 $43,492 Garnett University of West Florida $3,180,516 $80,000 ($53,892) $17,975 $3,224,598
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 88 University of West Florida Seg Res As of September 30, 2019
Asset Allocation
Strategic Current Target Percent Asset Category Current Market Value Allocation Allocation Variance Domestic Equities $1,072,749 35.1% 35.0% 0.1% International Equities $425,750 13.9% 15.0% (1.1%) Fixed Income $1,037,277 33.9% 32.0% 1.9% Alternative $463,922 15.2% 13.0% 2.2% Cash & Equivalents $56,670 1.9% 5.0% (3.1%) Total $3,056,367 100.0% 100.0%
* Since data availability date of 1/1/10
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 89 University of West Florida Seg Res As of September 30, 2019
Quarterly Cashflow University of West Florida Seg Res (CGA) From June 30, 2019 to September 30, 2019 Beginning Market Income/Change in Description Weight Value Deposits/ Purchases Outflows Market Value Ending Market Value Domestic Equities Alger Capital Appreciation Instl I 8.9% $274,255 $0 $0 ($3,148) $271,108 American Beacon Small Cp Val Inv 2.7% $83,836 $0 $0 ($994) $82,843 Conestoga Small Cap Investors 4.1% $129,497 $0 $0 ($4,774) $124,724 Diamond Hill Large Cap A 9.6% $289,885 $0 $0 $2,830 $292,715 Schwab® S&P 500 Index 9.9% $296,334 $0 $0 $5,026 $301,360
Domestic Equities Total 35.1% $1,073,809 $0 $0 ($1,060) $1,072,749
International Equities American Beacon Intl Equity Inv 4.7% $147,266 $0 $0 ($3,419) $143,847 Artisan International Investor 5.6% $171,218 $0 $0 $687 $171,905 Harding Loevner Emerging Markets Advisor 3.6% $113,986 $0 $0 ($3,989) $109,997
International Equities Total 13.9% $432,470 $0 $0 ($6,720) $425,750
Fixed Income JPMorgan Strategic Income Opps A 7.2% $220,632 $0 ($1,346) $769 $220,055 Schwab U.S. Aggregate Bond Index Fund 9.7% $292,229 $0 ($2,116) $6,691 $296,804 Virtus Seix Total Return Bond I 9.5% $286,542 $0 ($1,419) $6,284 $291,408 Western Asset Intermediate Bond I 7.5% $227,576 $0 ($1,569) $3,003 $229,010
Fixed Income Total 33.9% $1,026,979 $0 ($6,450) $16,748 $1,037,277
Alternative Blackrock Systematic 7.3% $219,321 $0 $0 $3,015 $222,337 Deutsche Real Assets Fd 7.9% $238,036 $0 $0 $3,549 $241,585
Alternative Total 15.2% $457,357 $0 $0 $6,565 $463,922
Cash & Equivalents Cash 1.9% $22,976 $86,450 ($52,790) - $56,670
Total 100.0% $3,013,591 $80,000 ($52,790) $15,567 $3,056,367
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 90 University of West Florida Seg Res As of September 30, 2019
Manager Performance University of West Florida Seg Res (CGA) Description Weight Ending Market Value Quarter to Date Net Return Domestic Equities Large Cap Value Diamond Hill Large Cap A (DHLAX) 9.6% $292,715 1.0%
Large Cap Value Total 9.6% $292,715 1.0% Russell 1000 Value 1.4%
Large Cap Core Schwab® S&P 500 Index (SWPPX) 9.9% $301,360 1.7%
Large Cap Core Total 9.9% $301,360 1.7% S&P 500 Composite 1.7%
Large Cap Growth Alger Capital Appreciation Instl I (ALARX) 8.9% $271,108 (1.1%)
Large Cap Growth Total 8.9% $271,108 (1.1%) Russell 1000 Growth 1.5%
Small Cap Value American Beacon Small Cp Val Inv (AVPAX) 2.7% $82,843 (1.2%)
Small Cap Value Total 2.7% $82,843 (1.2%) Russell 2000 Value (0.6%)
Small Cap Growth Conestoga Small Cap Investors (CCASX) 4.1% $124,724 (3.7%)
Small Cap Growth Total 4.1% $124,724 (3.7%) Russell 2000 Growth (4.3%)
International Equities Intl Core Plus Artisan International Investor (ARTIX) 5.6% $171,905 0.4%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 91 University of West Florida Seg Res As of September 30, 2019
Manager Performance University of West Florida Seg Res (CGA) Description Weight Ending Market Value Quarter to Date Net Return International Equities Intl Core Plus Intl Core Plus Total 5.6% $171,905 0.4% MSCI All Country World Index X - US Net (1.8%)
Intl Large Cap Value American Beacon Intl Equity Inv (AAIPX) 4.7% $143,847 (2.3%)
Intl Large Cap Value Total 4.7% $143,847 (2.3%) MSCI EAFE Value Net (1.7%)
Emerging Markets Harding Loevner Emerging Markets Advisor (HLEMX) 3.6% $109,997 (3.5%)
Emerging Markets Total 3.6% $109,997 (3.5%) MSCI EM (Emerging Markets) Net (4.2%)
Fixed Income Unconstrained Fixed Income JPMorgan Strategic Income Opps A (JSOAX) 7.2% $220,055 0.3%
Unconstrained Fixed Income Total 7.2% $220,055 0.3% Bloomberg Barclays US Aggregate 2.3%
Core Bond Schwab U.S. Aggregate Bond Index Fund (SWAGX) 9.7% $296,804 2.3% Virtus Seix Total Return Bond I (SAMFX) 9.5% $291,408 2.2% Western Asset Intermediate Bond I (WATIX) 7.5% $229,010 1.3%
Core Bond Total 26.7% $817,222 2.0% Bloomberg Barclays US Aggregate 2.3%
Alternative Liquid Real Assets Deutsche Real Assets Fd (AAASX) 7.9% $241,585 1.5%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 92 University of West Florida Seg Res As of September 30, 2019
Manager Performance University of West Florida Seg Res (CGA) Description Weight Ending Market Value Quarter to Date Net Return Alternative Liquid Real Assets Liquid Real Assets Total 7.9% $241,585 1.5% S&P Real Assets 1.1%
Absolute Return Blackrock Systematic (BAMBX) 7.3% $222,337 1.4% HFRX Aggregate Index (0.1%)
Absolute Return Total 7.3% $222,337 1.4% HFRX Global Hedge Fund Index 1.6%
Cash & Equivalents Taxable Money Market Cash (CASH) 1.9% $56,670 -
Taxable Money Market Total 1.9% $56,670 -
Total 100.0% $3,056,367 0.5% Blended 50 Eq (Blended Benchmark) 0.9%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 93 University of West Florida Seg Res As of September 30, 2019
Historical Performance University of West Florida Seg Res (CGA) Benchmark: Beginning Market Change in Market Blended Total Return Value Net Flow Value Ending Market Value Benchmark Historical Quarterly Performance Third Quarter 2019 0.5% $3,013,591 $27,210 $15,567 $3,056,367 0.9% Second Quarter 2019 3.7% $2,957,924 ($51,583) $107,249 $3,013,591 3.0% First Quarter 2019 8.2% $2,783,305 ($51,572) $226,192 $2,957,924 7.8% Fourth Quarter 2018 (7.8%) $3,074,009 ($51,806) ($238,898) $2,783,305 (7.0%) Third Quarter 2018 2.6% $3,047,152 ($51,799) $78,656 $3,074,009 2.4% Second Quarter 2018 1.1% $3,064,932 ($51,882) $34,102 $3,047,152 1.1% First Quarter 2018 (0.7%) $3,136,764 ($51,859) ($19,974) $3,064,932 (1.0%) Fourth Quarter 2017 2.9% $3,098,928 ($51,783) $89,620 $3,136,764 3.1% Third Quarter 2017 2.9% $2,984,179 $29,375 $85,373 $3,098,928 3.1% Second Quarter 2017 2.7% $2,956,193 ($50,579) $78,565 $2,984,179 2.5% First Quarter 2017 3.5% $2,904,629 ($50,535) $102,099 $2,956,193 3.5% Fourth Quarter 2016 0.1% $2,951,388 ($50,612) $3,853 $2,904,629 0.6%
Historical Quarterly Performance Total ($457,424) $562,403
Historical Annual Performance for Last 3 Years 2019 * 12.7% $2,783,305 ($75,945) $349,007 $3,056,367 * 12.1% 2018 (5.0%) $3,136,764 ($207,346) ($146,114) $2,783,305 (4.6%) 2017 12.5% $2,904,629 ($123,522) $355,657 $3,136,764 12.8% 2016 1.5% $113,970 $2,759,634 $31,025 $2,904,629 6.8%
Historical Annual Performance for Last $2,352,822 $589,575 3 Years Total
Inception to Date (Annualized) 12/31/2009 - 09/30/2019 6.1% 6.5%
Inception to Date (Cumulative) 12/31/2009 - 09/30/2019 78.6% 85.5%
* Partial period return
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 94 University of West Florida - Zimmers As of September 30, 2019
Asset Allocation
Strategic Current Target Percent Asset Category Current Market Value Allocation Allocation Variance Domestic Equities $18,100 14.5% 14.0% 0.5% International Equities $7,312 5.9% 6.0% (0.1%) Fixed Income $76,270 61.1% 65.0% (3.9%) Alternative $12,301 9.9% 10.0% (0.1%) Cash & Equivalents $10,755 8.6% 5.0% 3.6% Total $124,739 100.0% 100.0%
* Since data availability date of 1/1/10
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 95 University of West Florida - Zimmers As of September 30, 2019
Quarterly Cashflow University of West Florida - Zimmers (NIM CRUT) From June 30, 2019 to September 30, 2019 Beginning Market Income/Change in Description Weight Value Deposits/ Purchases Outflows Market Value Ending Market Value Domestic Equities Schwab Small Cap Index 2.6% $3,363 $0 $0 ($81) $3,282 Schwab® S&P 500 Index 11.9% $14,570 $0 $0 $247 $14,818
Domestic Equities Total 14.5% $17,933 $0 $0 $167 $18,100
International Equities American Beacon Intl Equity Inv 2.0% $2,516 $0 $0 ($58) $2,458 Artisan International Investor 2.2% $2,716 $0 $0 $11 $2,727 Harding Loevner Emerging Markets Advisor 1.7% $2,205 $0 $0 ($77) $2,127
International Equities Total 5.9% $7,437 $0 $0 ($125) $7,312
Fixed Income JPMorgan Strategic Income Opps A 6.5% $8,097 $0 ($49) $28 $8,076 Virtus Seix Total Return Bond I 54.7% $67,056 $0 ($332) $1,471 $68,194
Fixed Income Total 61.1% $75,153 $0 ($381) $1,499 $76,270
Alternative Blackrock Systematic 9.8% $12,088 $0 $0 $166 $12,255 Eaton Vance Glbl Macr Abs Ret A 0.0% $46 $0 $0 $1 $47
Alternative Total 9.9% $12,134 $0 $0 $167 $12,301
Cash & Equivalents Cash 2.1% $2,835 $433 ($624) - $2,645 Payden Ltd Maturity Fund 6.5% $8,110 $0 ($52) $52 $8,110
Cash & Equivalents Total 8.6% $10,945 $381 ($624) $52 $10,755
Total 100.0% $123,602 $0 ($624) $1,761 $124,739
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 96 University of West Florida - Zimmers As of September 30, 2019
Manager Performance University of West Florida - Zimmers (NIM CRUT) Description Weight Ending Market Value Quarter to Date Net Return Domestic Equities Large Cap Core Schwab® S&P 500 Index (SWPPX) 11.9% $14,818 1.7%
Large Cap Core Total 11.9% $14,818 1.7% S&P 500 Composite 1.7%
Small Cap Broad Schwab Small Cap Index (SWSSX) 2.6% $3,282 (2.4%)
Small Cap Broad Total 2.6% $3,282 (2.4%) Russell 2000 (2.5%)
International Equities Intl Core Plus Artisan International Investor (ARTIX) 2.2% $2,727 0.4%
Intl Core Plus Total 2.2% $2,727 0.4% MSCI All Country World Index X - US Net (1.8%)
Intl Large Cap Value American Beacon Intl Equity Inv (AAIPX) 2.0% $2,458 (2.3%)
Intl Large Cap Value Total 2.0% $2,458 (2.3%) MSCI EAFE Value Net (1.7%)
Emerging Markets Harding Loevner Emerging Markets Advisor (HLEMX) 1.7% $2,127 (3.5%)
Emerging Markets Total 1.7% $2,127 (3.5%) MSCI EM (Emerging Markets) Net (4.2%)
Fixed Income Unconstrained Fixed Income JPMorgan Strategic Income Opps A (JSOAX) 6.5% $8,076 0.3%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 97 University of West Florida - Zimmers As of September 30, 2019
Manager Performance University of West Florida - Zimmers (NIM CRUT) Description Weight Ending Market Value Quarter to Date Net Return Fixed Income Unconstrained Fixed Income Unconstrained Fixed Income Total 6.5% $8,076 0.3% Bloomberg Barclays US Aggregate 2.3%
Core Bond Virtus Seix Total Return Bond I (SAMFX) 54.7% $68,194 2.2%
Core Bond Total 54.7% $68,194 2.2% Bloomberg Barclays US Aggregate 2.3%
Alternative Absolute Return Blackrock Systematic (BAMBX) 9.8% $12,255 1.4% HFRX Aggregate Index (0.1%) Eaton Vance Glbl Macr Abs Ret A (EAGMX) 0.0% $47 1.9%
Absolute Return Total 9.9% $12,301 1.4% HFRX Global Hedge Fund Index 1.6%
Cash & Equivalents Short Term Bond Payden Ltd Maturity Fund (PYLMX) 6.5% $8,110 0.6%
Short Term Bond Total 6.5% $8,110 0.6% Bloomberg Barclays US Government / Credit 1 - 3Y 0.7%
Taxable Money Market Cash (CASH) 2.1% $2,645 -
Taxable Money Market Total 2.1% $2,645 -
Total 100.0% $124,739 1.4% Blended 20 Eq (Blended Benchmark) 1.6%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 98 University of West Florida - Zimmers As of September 30, 2019
Historical Performance University of West Florida - Zimmers (NIM CRUT) Benchmark: Beginning Market Change in Market Blended Total Return Value Net Flow Value Ending Market Value Benchmark Historical Quarterly Performance Third Quarter 2019 1.4% $123,602 ($624) $1,761 $124,739 1.6% Second Quarter 2019 2.7% $120,553 ($220) $3,268 $123,602 2.9% First Quarter 2019 4.7% $116,655 ($1,494) $5,392 $120,553 4.8% Fourth Quarter 2018 (3.0%) $120,476 ($220) ($3,602) $116,655 (2.3%) Third Quarter 2018 1.0% $119,469 ($219) $1,226 $120,476 1.0% Second Quarter 2018 0.4% $119,643 ($619) $444 $119,469 0.4% First Quarter 2018 (0.8%) $122,356 ($1,720) ($992) $119,643 (1.2%) Fourth Quarter 2017 1.3% $120,952 ($221) $1,624 $122,356 1.5% Third Quarter 2017 1.6% $119,280 ($219) $1,891 $120,952 1.8% Second Quarter 2017 1.9% $117,684 ($616) $2,212 $119,280 1.8% First Quarter 2017 2.4% $116,872 ($1,909) $2,721 $117,684 1.9% Fourth Quarter 2016 (0.6%) $117,811 ($217) ($722) $116,872 (1.2%)
Historical Quarterly Performance Total ($8,296) $15,224
Historical Annual Performance for Last 3 Years 2019 * 9.1% $116,655 ($2,338) $10,422 $124,739 * 9.6% 2018 (2.4%) $122,356 ($2,777) ($2,924) $116,655 (2.1%) 2017 7.4% $116,872 ($2,964) $8,448 $122,356 7.2% 2016 4.4% $114,637 ($2,771) $5,007 $116,872 4.1%
Historical Annual Performance for Last ($10,851) $20,952 3 Years Total
Inception to Date (Annualized) 12/31/2009 - 09/30/2019 5.2% 5.0%
Inception to Date (Cumulative) 12/31/2009 - 09/30/2019 64.1% 61.6%
* Partial period return
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 99 University of West Florida - Hugh Garnett As of September 30, 2019
Asset Allocation
Strategic Current Target Percent Asset Category Current Market Value Allocation Allocation Variance Domestic Equities $8,377 19.3% 14.0% 5.3% International Equities $2,404 5.5% 6.0% (0.5%) Fixed Income $26,770 61.6% 65.0% (3.4%) Alternative $5,030 11.6% 10.0% 1.6% Cash & Equivalents $911 2.1% 5.0% (2.9%) Total $43,492 100.0% 100.0%
* Since data availability date of 1/1/10
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 100 University of West Florida - Hugh Garnett As of September 30, 2019
Quarterly Cashflow University of West Florida - Hugh Garnett (NIM CRUT) From June 30, 2019 to September 30, 2019 Beginning Market Income/Change in Description Weight Value Deposits/ Purchases Outflows Market Value Ending Market Value Domestic Equities Schwab Small Cap Index 2.6% $1,178 $0 $0 ($28) $1,150 Schwab® S&P 500 Index 16.6% $7,107 $0 $0 $121 $7,228
Domestic Equities Total 19.3% $8,285 $0 $0 $92 $8,377
International Equities American Beacon Intl Equity Inv 2.0% $881 $0 $0 ($20) $861 Artisan International Investor 2.5% $1,079 $0 $0 $4 $1,084 Harding Loevner Emerging Markets Advisor 1.1% $476 $0 $0 ($17) $459
International Equities Total 5.5% $2,436 $0 $0 ($33) $2,404
Fixed Income JPMorgan Strategic Income Opps A 10.9% $4,754 $0 ($29) $17 $4,741 Virtus Seix Total Return Bond I 50.7% $21,661 $0 ($107) $475 $22,029
Fixed Income Total 61.6% $26,415 $0 ($136) $492 $26,770
Alternative Eaton Vance Glbl Macr Abs Ret A 11.6% $4,935 $0 $0 $96 $5,030
Cash & Equivalents Cash 2.1% $1,252 $136 ($479) - $911
Total 100.0% $43,324 $0 ($479) $647 $43,492
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 101 University of West Florida - Hugh Garnett As of September 30, 2019
Manager Performance University of West Florida - Hugh Garnett (NIM CRUT) Description Weight Ending Market Value Quarter to Date Net Return Domestic Equities Large Cap Core Schwab® S&P 500 Index (SWPPX) 16.6% $7,228 1.7%
Large Cap Core Total 16.6% $7,228 1.7% S&P 500 Composite 1.7%
Small Cap Broad Schwab Small Cap Index (SWSSX) 2.6% $1,150 (2.4%)
Small Cap Broad Total 2.6% $1,150 (2.4%) Russell 2000 (2.5%)
International Equities Intl Core Plus Artisan International Investor (ARTIX) 2.5% $1,084 0.4%
Intl Core Plus Total 2.5% $1,084 0.4% MSCI All Country World Index X - US Net (1.8%)
Intl Large Cap Value American Beacon Intl Equity Inv (AAIPX) 2.0% $861 (2.3%)
Intl Large Cap Value Total 2.0% $861 (2.3%) MSCI EAFE Value Net (1.7%)
Emerging Markets Harding Loevner Emerging Markets Advisor (HLEMX) 1.1% $459 (3.5%)
Emerging Markets Total 1.1% $459 (3.5%) MSCI EM (Emerging Markets) Net (4.2%)
Fixed Income Unconstrained Fixed Income JPMorgan Strategic Income Opps A (JSOAX) 10.9% $4,741 0.3%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 102 University of West Florida - Hugh Garnett As of September 30, 2019
Manager Performance University of West Florida - Hugh Garnett (NIM CRUT) Description Weight Ending Market Value Quarter to Date Net Return Fixed Income Unconstrained Fixed Income Unconstrained Fixed Income Total 10.9% $4,741 0.3% Bloomberg Barclays US Aggregate 2.3%
Core Bond Virtus Seix Total Return Bond I (SAMFX) 50.7% $22,029 2.2%
Core Bond Total 50.7% $22,029 2.2% Bloomberg Barclays US Aggregate 2.3%
Alternative Absolute Return Eaton Vance Glbl Macr Abs Ret A (EAGMX) 11.6% $5,030 1.9%
Absolute Return Total 11.6% $5,030 1.9% HFRX Global Hedge Fund Index 1.6%
Cash & Equivalents Taxable Money Market Cash (CASH) 2.1% $911 -
Taxable Money Market Total 2.1% $911 -
Total 100.0% $43,492 1.5% Blended 20 Eq (Blended Benchmark) 1.6%
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 103 University of West Florida - Hugh Garnett As of September 30, 2019
Historical Performance University of West Florida - Hugh Garnett (NIM CRUT) Benchmark: Beginning Market Change in Market Blended Total Return Value Net Flow Value Ending Market Value Benchmark Historical Quarterly Performance Third Quarter 2019 1.5% $43,324 ($479) $647 $43,492 1.6% Second Quarter 2019 2.8% $42,226 ($77) $1,175 $43,324 2.9% First Quarter 2019 4.7% $40,597 ($263) $1,892 $42,226 4.8% Fourth Quarter 2018 (3.0%) $41,939 ($76) ($1,266) $40,597 (2.3%) Third Quarter 2018 1.0% $41,586 ($77) $429 $41,939 1.0% Second Quarter 2018 0.4% $41,907 ($477) $156 $41,586 0.4% First Quarter 2018 (0.8%) $42,598 ($343) ($348) $41,907 (1.2%) Fourth Quarter 2017 1.4% $42,106 ($77) $569 $42,598 1.5% Third Quarter 2017 1.6% $41,520 ($77) $662 $42,106 1.8% Second Quarter 2017 1.9% $41,221 ($476) $775 $41,520 1.8% First Quarter 2017 2.4% $40,677 ($409) $953 $41,221 1.9% Fourth Quarter 2016 (0.6%) $41,006 ($76) ($253) $40,677 (1.2%)
Historical Quarterly Performance Total ($2,906) $5,392
Historical Annual Performance for Last 3 Years 2019 * 9.2% $40,597 ($819) $3,714 $43,492 * 9.6% 2018 (2.5%) $42,598 ($973) ($1,028) $40,597 (2.1%) 2017 7.4% $40,677 ($1,038) $2,959 $42,598 7.2% 2016 4.4% $39,895 ($972) $1,754 $40,677 4.9%
Historical Annual Performance for Last ($3,802) $7,399 3 Years Total
Inception to Date (Annualized) 12/31/2009 - 09/30/2019 5.4% 5.1%
Inception to Date (Cumulative) 12/31/2009 - 09/30/2019 66.5% 63.0%
* Partial period return
Performance quoted is past performance and is no guarantee of future results. Not a statement; please confirm all values against your custodial account statement. Cornerstone Advisors Asset Management, LLC Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC (610) 694-0900 • www.cornerstone-companies.com Investment Advisory Services offered through Cornerstone Advisors Asset Management, LLC 74 West Broad Street, Suite 340, Bethlehem, PA 18018 Cornerstone Advisors Asset Management, LLC is independently owned and operated. 104 Disclosures
Securities offered through M Holdings Securities, Inc., MEMBER FINRA/SIPC
Investment Advisory Services are offered through Cornerstone Advisors Asset Management, LLC, which is independently owned and operated.
Performance quoted is past performance and is no guarantee of future results.
Unless otherwise noted, data obtained from Callan Associates.
All indices are unmanaged and not available for direct investment.
Cornerstone Advisors Asset Management, LLC and Cornerstone Institutional Investors, LLC have exercised reasonable care in the preparation of this presentation. Several portions of this presentation are obtained from third party sources. While we have attempted to verify all information within, we disclaim all responsibility for any errors that may occur due to third party information and data.
The information is provided solely for informational purposes and therefore should not be considered an offer to buy or sell a security. Except as otherwise required by law, Cornerstone shall not be responsible for any trading decisions or damages or other losses resulting from, this information, data, analyses or opinions or their use. Please read the prospectus carefully before investing. It is not a replacement for any account statement or transaction confirmation issued by the provider. Please compare this document to your custodial statement for accuracy, as applicable.
All materials, including advertising, sales promotion, or demonstration materials which refer directly to the Russell Indexes shall expressly state that Frank Russell Company is the owner of the Russell Marks in language consistent with and substantially similar to the following example:
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
cornerstone-companies.com 105 University of West Florida Foundation: Private Markets Allocation Q3 2019
309 East Paces Ferry Road, Suite 600 | Atlanta, GA 30305 | T 888.317.2810 | F 470.823.3178 | theatlantaconsultinggroup.com 106 EXECUTIVE SUMMARY
As of June 30, 2019 Vintage Commitment Distributions to Remaining Fund Strategy Called Capital Year Size Paid in Capital Value Portfolio Advisors Private Equity Fund V PE Fund of Fund 2007 $1,000,000 70.7% $707,263 136.4% $964,807 $287,992 StepStone Pioneer Capital III PE Fund of Fund 2009 $1,000,000 93.7% $936,775 97.3% $911,316 $637,188 Harbert US Real Estate Fund IV Value-Add Real Estate 2009 $1,000,000 95.7% $956,781 191.7% $1,834,213 $41,637 Portfolio Advisors Private Equity Fund VII PE Fund of Fund 2011 $1,000,000 65.2% $652,083 65.5% $426,916 $720,374 Harbert US Real Estate Fund V Value-Add Real Estate 2012 $2,000,000 89.9% $1,798,495 84.6% $1,522,399 $1,089,846 Portfolio Advisors Direct Credit Fund II Private Credit 2015 $1,000,000 93.9% $938,823 40.7% $382,355 $687,339 Portfolio Advisors Secondary Fund III Diversified PE Secondaries 2016 $2,000,000 50.7% $1,014,030 25.7% $260,273 $1,005,274 Harbert US Real Estate Fund VI Value-Add Real Estate 2016 $2,000,000 85.9% $1,717,323 5.8% $98,919 $2,037,527 Golub Capital Partners 12 Private Credit 2018 $2,000,000 20.0% $400,000 0.0% $8,522 $405,258 Portfolio Advisors Private Equity Fund X PE Fund of Fund 2019 $5,000,000 0.0% $0 0.0% $0 $0 $18,000,000 $9,121,573 $6,409,720 $6,912,435
Capital Called Distributions During the Quarter-over-Quarter Fund Net IRR Net MOIC During the Quarter Quarter Change in Total Value
Portfolio Advisors Private Equity Fund V $0 $21,430 -$7,235 10.6% 1.88X StepStone Pioneer Capital III $0 $0 $1,955 13.7% 1.90x Harbert US Real Estate Fund IV $0 $0 -$430 21.3% 1.95X Portfolio Advisors Private Equity Fund VII $0 $38,008 $45,962 14.6% 1.90X Harbert US Real Estate Fund V $0 $250,602 $30,464 12.7% 1.46X Portfolio Advisors Direct Credit Fund II $112,426 $11,570 $127,430 11.7% 1.21X Portfolio Advisors Secondary Fund III $0 $0 $35,455 47.5% 1.31X Harbert US Real Estate Fund VI $145,935 $0 $187,530 11.5% 1.24X Golub Capital Partners 12 $200,000 $0 $205,258 N/A N/A Portfolio Advisors Private Equity Fund X $0 $0 $0 N/A N/A $458,361 $321,610 $626,388
Portfolio Characteristics as of 6/30/2019
107 PORTFOLIO ADVISORS
Fund Summary Firm Inception 1994 Vintage Year 2019 Firm AUM $23.5 billion Target Size $1.5 Billion Strategy Diversified Secondaries Series I Mgmt Fee 1.125% on Invested Capital* Vintage Portfolio Advisors Secondary Fund IV Series II Mgmt Fee 0.80% on Committed Capital* Availability Currently Fundraising Hurdle / Carried Interest 10% / 10%
• Portfolio Advisors has leveraged their flagship Private Equity Fund of Funds platform and longstanding relationships with General Partners to build a successful Secondaries business
• Secondary transactions provide increased diversification and mitigation of j-curve risk through immediate exposure to seasoned funds resulting in a faster deployment of capital and potential for earlier realization of liquidity
• The strategy aims to construct a highly diversified portfolio (>250 funds) targeting buyout, venture and distressed funds across multiple industries and geographies to help mitigate downside risk
• Portfolio Advisors Secondary Fund VI will utilize a small allocation of co-investments to compliment the secondary transactions to drive multiple return
*Early Close Fee Incentive available through 3/31/2020. Both Series I and II Management Fees move to 1.125% after conclusion of Investment Period 108 RECOMMENDATION
Fund Strategy Vintage Year Amount Portfolio Advisors Private Equity Fund V PE Fund of Fund 2007 $1,000,000 StepStone Pioneer Capital III PE Fund of Fund 2009 $1,000,000 Harbert US Real Estate Fund IV Value-Add Real Estate 2009 $1,000,000 Portfolio Advisors Private Equity Fund VII PE Fund of Fund 2011 $1,000,000 Harbert US Real Estate Fund V Value-Add Real Estate 2012 $2,000,000 Portfolio Advisors Direct Credit Fund II Private Credit 2015 $1,000,000 Portfolio Advisors Secondary Fund III Diversified PE Secondaries 2016 $2,000,000 Harbert US Real Estate Fund VI Value-Add Real Estate 2016 $2,000,000 Golub Capital Partners 12 Private Credit 2018 $2,000,000 Portfolio Advisors Private Equity Fund X PE Fund of Fund 2019 $5,000,000 Portfolio Advisors Secondary Fund III Diversified PE Secondaries 2019 $4,000,000 Total $22,000,000
• To further diversify and build out the private market allocation for University of West Florida Foundation, ACG is recommending the following a $4 million commitment to Portfolio Advisors Secondary Fund IV
Asset Class Remaining Value Portfolio %
Private Equity $2,650,828 2.87% Private Credit $1,092,597 1.18% Real Estate $3,169,010 3.43% Total $6,912,435 7.47%
Remaining Market Value as of 6/30/2019 Portfolio % as of 9/30/2019 total market value 109 PROJECTED CAPITAL CALLS
Projected capital calls Capital called FY 2020 FY 2021 Investment Vintage Commitment % $ % $ % $
Harbert U.S. Real Estate IV 2009 $ 1,000,000 95.7% $ 956,781 0% $0 0% $0 U.S. Real Estate V 2012 $ 2,000,000 89.9% $ 1,798,495 0% $0 0% $0 U.S. Real Estate VI 2016 $ 2,000,000 85.9% $ 1,717,323 10% $200,000 5% $100,000
Portfolio Advisors Private Equity V 2007 $ 1,000,000 70.7% $ 707,263 0% $0 0% $0 Private Equity VII 2011 $ 1,000,000 65.2% $ 652,083 0% $0 0% $0 Direct Credit II 2015 $ 1,000,000 93.9% $ 938,823 0% $0 0% $0 Secondary Fund III 2016 $ 2,000,000 50.7% $ 1,014,030 25% $500,000 15% $300,000 Private Equity X 2019 $ 5,000,000 0.0% $ - 10% $500,000 10% $500,000 Secondary Fund IV 2019 $ 4,000,000 0.0% $ - 0% $0 35% $1,400,000
Stepstone Pioneer Capital III, LP 2009 $ 1,000,000 93.7% $ 936,775 0% $0.00 0% $0.00
Golub Capital Partners 12 2018 $ 2,000,000 20.0% $ 400,000 30% $600,000.00 30% $600,000.00 SubTotal $ 22,000,000 41.5% $ 9,121,573 8% $1,800,000 13% $2,900,000
Projected Distributions Projected Distributions FY 2020 FY 2021 Salary & Fringe Benefits (Salaries of Foundation and UWF personnel) $3,100,000 $3,100,000 UWF Operations (Travel, postage, and other items to support program) $1,800,000 $1,800,000 Scholarships (Disbursed by Financial Aid and reimbursed by Foundation) $2,200,000 $2,200,000 Other Operations (Expenses paid directly by Foundation) $2,900,000 $2,900,000 SubTotal $10,000,000 $10,000,000
Projected Cash Contributions $4,000,000 $4,320,000
Total $7,800,000 $8,580,000
Called Capital as of 6/30/2019. Projected Capital Calls and Distributions are estimates as of 9/30/2019 and subject to material change.
110 APPENDIX
111 Executive Summary confidential
Employee owned and independent Global footprint and client base PA Platform Multi-asset class investing Deep team of senior investment professionals
Strong general partner relationships Extensive GP Viewed by the GP community as a strategic secondary buyer, as PA invests an average of $2.5B in private markets per year Relationships 72% of funds in the PASF vehicles represent existing sponsor relationships through fund-of-funds or advisory business >90% of the transactions in the PASF vehicles have been either exclusive, GP directed, carve-outs or limited auctions
Proprietary PRIVILEGe® database contains information for over 2,000 fund interests managed by over 700 GPs Propriety Database Platform and relationships lead to extensive private equity data and intelligence, allowing PA to more accurately price transactions
Portfolio Advisors Secondary Fund IV (“PASF IV” or the “Fund”) has an attractive fee structure relative to the broader market Attractive Fee Structure Option to pay management fees on invested capital, 10% preferred return and 10% carried interest after full return of invested capital
Established team with extensive experience; evaluated more than $200B of secondary opportunities as of 2008 Focus on middle-market secondaries (deals between $5MM and $75MM) Targeted $1.5B fund size allows team to selectively deploy capital Strategy & Broadly diversified by strategy, vintage and industry Performance Predecessor funds are generating strong returns without the use of leverage PASF I returns: 1.8x gross TVPI / 1.7x net TVPI; 16.3% gross IRR / 13.7% net IRR1 PASF II returns: 1.6x gross TVPI / 1.4x net TVPI; 20.0% gross IRR / 16.1% net IRR1 PASF III returns: 1.3x gross TVPI / 1.3x net TVPI; 41.9% gross IRR / 41.7% net IRR1
1 As of March 31, 2019. Past performance is not indicative of future results and there can be no assurance that the Fund will achieve comparable results and/or its investment objective. Please see the “Secondary Performance Endnotes” as well as the Disclosure Statement, in the Appendix for additional information. The returns for each investor in the Fund(s) may be materially different from those shown herein due to different fee schedules and timing on investment. This performance information is estimated and unaudited. confidential 112 Portfolio Advisors: A Global Presenceconfidential
Zurich Darien
Hong Kong
Office Location - Investment / Investor Relations Investor Relations
Independent, employee-owned investment firm Key Statistics SEC-registered investment advisor; qualified professional asset manager 1994 ~$23.5 Billion Focus on private markets investing: private equity, private credit and Year Founded Assets Under private real estate Management1 ̶ Over $18 billion of limited partner commitments to commingled 100+ 250+ funds Professionals GP Relationships ̶ Average of $2.5 billion invested in private markets per year (2013 - 2018) 200+ >2,000 Funds management, advisory, and administration and reporting services Advisory Board Seats Funds Tracked in Proprietary Database
1 As of December 31, 2018; assets under management is measured as adjusted reported value plus unfunded commitment. confidential 113 Multi-Asset Class Private Marketsconfidential Platform
Global Global Global Asia U.S. Equity U.S. / Global Private Equity Secondary Real Estate Private Equity Co-Investment Credit Funds Funds Funds Funds Funds Funds
$7.1B $4.1B $2.0B $1.1B $1.2B $3.4B
Flexible “menu- Focused on Flexible “menu- Focus on mid- Focus on U.S. Direct Credit driven” structure purchasing existing driven” structure market and growth middle-market Opportunities Fund limited partnership capital strategies private equity – Direct, private Relationships with interests on Value add & transactions with junior debt sponsors of funds secondary market opportunistic Primaries core sponsors investments investments Attractive fee Focus on mid-sized Secondaries Utilize platform to Credit Strategies structure transactions Primaries source and execute Fund – Credit fund In market: PAAF VI secondaries and co- Co-investments Secondaries $400MM Target Utilize platform to Attractive fee investments source and execute structure Exposure to Co-investments In market: PACSF secondaries to help In market: PASF IV Coming to market In market: PAGIF Up to $500M minimize J-curve $1.5B Target Q1 2020: PCIF IV $250MM Target, Target, PADCOF III $750M Target In market: PAPEF X and PAREF VII $1.0B Target, and $900MM Target $650MM Target PASCOF $300M Target
Note: Numbers reflect historic limited partner commitments to each strategy as of June 2019. confidential 114 Dedicated Secondaries Investmentconfidential Team
Experienced team that has invested across multiple economic cycles ̶ Senior Investment Team has an average of 12 years of private markets experience and 11 years at PA ̶ Investment Committee has an average of 19 years experience and 13 years at PA
Secondaries Investment Professionals Investment Committee
1 Hugh Perloff Brian Murphy Patrick Gerbracht 1 Managing Director Bill Indelicato Managing Director 1 Head of Secondaries Adam Clemens 14 years experience 21 years experience Hugh Perloff 9 years at PA 21 years at PA Greg Garrett John Kyles Ken Binick Patrick Gerbracht Justin Lux Tim Henn Ben Hur Senior Vice President Vice President Justin Lux 8 years experience 5 years experience 8 years at PA 5 years at PA
Resources
Jorge Rossello Patrick Brown Finance – 9 professionals Senior Associate Senior Associate Marketing – 17 professionals 3 years experience 1 year experience Legal/Compliance – 6 professionals 3 years at PA 1 year at PA Technology – 4 professionals
Additional Pool of Six Junior Investment Professionals
1 Denotes a member of Portfolio Advisors’ Management Committee confidential 115 Historical Secondaries Investmentconfidential Experience
PA has executed more than $5.5B of secondary transactions across 24 vehicles since 2002 PA can provide a complete liquidity solution to multi-asset class private market sellers Predecessor PASF vehicles have generated strong returns for limited partners across different pricing environments
Portfolio Advisors Secondary Investment Funds
PAPEF II PAPEF IV PAPEF V Asia II Asia III PAREF IV PAPEF VIII PACSF PAREF VI PA Asia V PA Growth and PAPEF X PA Asia VI Secondaries Secondaries Secondaries Secondaries Secondaries Secondaries Secondaries Secondaries Secondaries Secondaries Income Secondaries Secondaries 2002 2006 2007 2008 2010 2011 2013 2013 2015 2016 2017 2018 2018
PAPEF III Asia I PASF I PAPEF VI PAPEF VII PASF II PAREF V PA Asia IV PASF III PAPEF IX PAREF VII PASF IV Secondaries Secondaries 2008 Secondaries Secondaries 2012 Secondaries Secondaries 2016 Secondaries Secondaries 2020 2004 2006 2009 2011 2013 2013 2016 2018
PASF Secondaries Track Record ($MM)i
Predecessor Vintage Fund Total Reported Total Gross Gross Net Net Fund Year Size Exposure(3) Contributions(3) Distributions(3) Value(3) Value(3) Multiple(3) IRR(1,2) Multiple(3) IRR(1,2) PASF I 2008 $1,128.4 $1,150.6 $1,017.8 $1,551.1 $263.5 $1,814.6 1.78x 16.3% 1.65x 13.7% PASF II 2012 $910.3 $1,023.6 $796.6 $835.4 $407.9 $1,243.3 1.56x 20.0% 1.44x 16.1% PASF III 2016 $1,518.2 $1,084.3 $792.3 $229.4 $812.6 $1,041.9 1.32x 41.9% 1.30x 41.7% Total $3,258.5 $2,606.7 $2,615.9 $1,483.9 $4,099.9 1.57x 18.2% 1.48x 15.4%
i As of March 31, 2019. Past Performance is not a guarantee of future success. Gross returns are not reflective of the Net Returns realized by any investor in the Fund as Gross Returns do not include the deduction of management fees, performance fees and other Fund expenses. The Gross returns and Net Returns of other accounts and funds may be materially different from those shown herein. Please see the “Secondary Performance Endnotes” in the Appendix hereto for more information. Additional information available upon request. confidential 116 Secondaries Transaction Volumeconfidential Hits Record Levels
Annual Secondary Market Volume1 ($B) The secondary market has grown at a CAGR of approximately 25% since the global financial crisis Recent volume growth driven by large ($500MM+) LP portfolio sales and GP-led transactions
$90 LP-Led GP-Led $80 $74 $70 $58 $60 $24 $50 $42 $14 $40 $37 $40 $28 $8 $7 $30 $23 $25 $25 $9 $20 $2 $50 $20 $44 $10 $34 $33 $10 $26 $28 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 PA’s Highly Selective Approach ($MM) As secondary volume has grown, many secondary buyers have therefore increased fund sizes and average transaction sizes PA’s consistent fund size provides the flexibility to selectively deploy capital (average market share of 1.0% since 2008)
$1,000 PA Deal Volume % of Total Market 3.0%
$800 $724 $687 2.0% $600 $416 $361 $400 $292 $324 $246 1.0% $228 $134 $200 $119 $105 - - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1 Source: Greenhill, “Global Secondary Market Trends & Outlook, January 2019” confidential 117 Navigating an Elevated Pricing Environmentconfidential
Average Annual Secondary Market Pricing (% of NAV)1 Elevated headline pricing driven by supportive macro conditions and increased supply of post-2012 vintage funds Average pricing across all strategies stabilized in 2018 as a result of public market volatility and increasing supply of tail-end funds 100% 99% 97% 96% 94% 95% 95% 91% 92% 93% 92% 90% 89% 90% 87% 93% 86% 84% 90% 90% 85% 83% 88% 89% 82% 80% 80% 83% 83% 81% 75% 74% 74% 79% 78% 75% 70% 70% 73% 65% 2011 2012 2013 2014 2015 2016 2017 2018 All Strategies Buyout Venture Real Estate
PA’s Highly Selective Approach ($MM) PA seeks to invest in high-quality, growth-oriented assets through detailed, bottom-up analysis of underlying portfolio companies Value appreciation in underlying assets prior to closing a transaction can lead to meaningful effective discounts PASF Returns by Discount2† Illustrative Effective Discount 2.00x Gross TVPI Gross IRR 50% $60 30% Effective Disc. 1.60x 1.60x 20% Headline Disc. 40% $10 $10 1.50x 1.40x 30.7% 30% $50 $50 1.00x 18.8% $40 14.4% 20% 0.50x 10% - - >=10% Discount < 10% Discount Structured RD PRD NAV Purchase Price Transactions NAV Gains at Close † Excludes co-investments. Please see the “Performance of PASF I, II & III Secondary Transactions Endnotes” in the Appendix hereto for additional information. 1 Source: Greenhill, “Global Secondary Market Trends & Outlook, January 2019” 2 As of March 31, 2019. Past Performance is not a guarantee of future success. Gross returns are not reflective of the Net Returns realized by any investor in the Fund as Gross Returns do not include the deduction of management fees, performance fees and other Fund expenses. The Gross returns and Net Returns of other accounts and funds may be materially different from those shown herein. Please see the “Secondary Performance Endnotes” in the Appendix hereto for additional information. confidential 118 PA’s Differentiated Position in theconfidential Secondary Market
Historical Fund Sizes of Select Secondary Buyers ($MM)1
Pressure to deploy large pools of capital Group A $7,100 $10,100 $12,000 $500MM+ LP portfolios Concentrated, GP-led transactions Fund- and transaction-level Group B $3,000 $4,400 $7,500 $8,000 leverage Price taking
Broad PE platform PA $910 $1,518 $1,500 Longstanding relationships Fund size allows for flexibility and selectivity
Group C $1,024 $1,102 $1,447 Secondary-only programs Highly competitive part of the market Limited relationships Group D $400 $500 $600 Inferior information Insufficient scale to compete for larger PE Platform Secondaries Only transactions
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 Sources: Preqin.com, accessed September 2019, and Pitchbook.com, accessed September 2019. Note: Additional secondary funds and managers were in the market during the time period referenced above. Information on other managers is available upon request. Past performance is no guarantee of future success. confidential 119 Secondary Market Opportunitiesconfidential
Market Active Portfolio Fund-of-Funds Tail-End GP-Led Dislocation / Management Wind Downs Portfolio Sales Transactions Distressed Sales
Change in market “Orphan” GP Whole / partial Ongoing LP interest Older vintage funds; conditions creating relationships; majority portfolio sales; fund sales to shift allocation; Description potential LP fatigue strong interest in of original value restructurings; LP CIO turnover liquidity distributed tender offers
Buy diversified Buy high-quality assets Buy shorter duration, Carve out LP interests Buy higher IRR, shorter Opportunity portfolios at larger at an attractive high-quality assets from larger portfolios duration LP interests discounts headline discount from fatigued LP bases
Typical Deal Size $5MM - $300MM+ $5MM - $75MM+ $5MM - $100MM+ $5MM - $50MM+ $5MM - $1B+
Utilize PA information Leverage PA’s Leverage PA’s platform Leverage entire global Leverage internal advantage to diligence relationships and to carve out interests platform to source resources to identify underlying fund platform to source PA Approach managed by high- quality assets with cash cash flowing assets, bid exposures; participate high-quality quality GPs flow selectively in limited auctions opportunities
Strong fit; Moderate fit; Moderate fit; Strong fit; Strong fit; participate in limited participate in lead small transactions, participate in high- participate in limited competition transactions where PA participate in high- PA Fit quality, off-market competition sales transactions for high- has an information quality syndicated transactions quality assets advantage transactions
Note: The foregoing displays PA’s view of the current state of the private equity secondary market. This analysis is not intended to be complete and material aspects of the foregoing may change at any time confidential 120 PA Secondaries Strategy Overviewconfidential
GP relationships: 250+ Leverage Advisory Board seats: 200+ Extensive GP Annual deployment in private markets: $2.5B Relationships Information advantage Transfer approvals from restrictive GPs
PA average volume (% of total reviewed): 2% Selectively Existing GP relationships (% of purchased): 72% Purchase PASF I gains from value appreciation1: 78% Quality Assets PASF II gains from value appreciation1: 82%
Perform detailed, bottom-up analysis Maintain PASF I average headline discount1: 22% Pricing PASF II average headline discount1 : 10% Discipline PASF I gains from discount1: 22% PASF II gains from discount1: 18%
Average # funds (PASF I-III): >250 Construct Average # companies (PASF I-III): >3,100 Highly Targeted strategies: buyout, venture, distressed Diversified Portfolios Diversified by industry and geography Diversification mitigates downside risk
PA believes that this proven strategy can generate attractive, risk-adjusted returns in all market environments
1 As of March 31, 2019. Past performance is not indicative of future results and there can be no assurance that the Fund will achieve comparable results and/or its investment objective. Please see the “Secondary Performance Endnotes” as well as the Disclosure Statement, in the Appendix for additional information. The returns for each investor in the Fund(s) may be materially different from those shown herein due to different fee schedules and timing on investment. This performance information is estimated and unaudited. confidential 121 Extensive General Partner Relationshipsconfidential
72% of closed investments in PASF vehicles represent existing sponsor relationships through one or more of our primary investing platforms The 250+ GP relationships across the PA platform provide the secondaries team with both a higher probability of gaining transfer approvals and an information advantage to more accurately price and execute transactions
Select Portfolio Advisors GP Relationships
PA has purchased LP interests managed by all of the GPs above in the secondary market
Note: Relationships shown represent the cross section of key GP relationships for the Secondaries sector. This is not an exclusive list and there is no guarantee that the fund will invest with one or more of these relationships in the future. No endorsement of PA has been made by any of the names shown herein. Highlighted funds denotes funds for which PA employees hold an advisory board seat. confidential 122 Relationships Generate an Informationconfidential Advantage
PA Platform and PRIVILEGe® Database PA’s platform consists of ~$23.5 billion of client assets1, primary relationships with over 250 GPs and over 200 advisory board seats PRIVILEGe® is PA’s proprietary administration and reporting system from PA’s primary and advisory GP relationships (more comprehensive database compared to other pure-play secondary players) PRIVILEGe® contains underlying portfolio company detail and daily cash flow data for approximately 2,000 fund interests managed by over 700 GPs
Illustrative Transaction Due Diligence Materials
Data Room PA Platform PRIVILEGe® Record Date Financial Statements Advisory Board Materials Inception to Date Financial Statements
Record Date Capital Account Annual Meeting Materials Inception to Date Quarterly Reports
Post Record Date Cash Flows LP Update Meeting Materials Inception to Date Cash Flows (Updated Daily) GP Calls Inception to Date Fund Returns Primary Due Diligence Materials (Data Room Access) Predecessor / Successor Fund Available to All Bidders Information Primary Investment Memos
PA Information Advantage
PA leverages its GP relationships and information advantage to more accurately price secondary transactions
1 As of December 31, 2018; assets under management is measured as adjusted reported value plus unfunded commitment. confidential 123 Developing Sourcing Leads Throughconfidential PA’s Platform
Since 2008, the secondary investment team has reviewed >1,600 deals representing ~$237B of exposure Over 90% of the transactions in the PASF vehicles are either exclusive, GP directed, carve-outs or limited auctions PA Sourcing Overview1 Historical Deal Flow (2008 – Q2 2019) Deal Source (% of Total Exposure)
GP Directed Reviewed GP Directed Limited Portion (Limited 21% 1,690 deals Auction Auction) 10% 5% $252.7B exposure Exclusive Broken Auction 24% 1%
Secondary Carve Out Relationship (Limited 1% LOI Auction) 38% 503 deals $66.6B exposure Seller Type (% of Total Exposure)
Fund of Public Funds Vehicle 12% 12% Family Closed Office 121 deals Financial 10% Institution Other $4.8B exp. 15% 4%
Foundation/ Pension Plan Endowment 20% 27% 2% “Hit-Rate”
1 As of March 31, 2019. Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. confidential 124 Investing in Growth-Oriented Assetsconfidential
PASF I Value Attribution Summary (as of March 31, 2019)1,2 PASF I was invested post-Global Financial Crisis and benefitted from higher headline discounts to NAV (~22% on average) As holding periods lengthened, PASF I has generated significant additional gains from value appreciation in underlying assets
45% 49% 62% 70% 73% 74% 76% 78% 78% 100%
55% 51% 38% 30% 27% 26% 24% 22% 22%
Record Date 2Q'12 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q'18 1Q'19
Gains from Purchase Price Discount Gains from Value Appreciation
PASF II Value Attribution Summary (as of March 31, 2019)1,2 PASF II was invested during a period of strong economic recovery, leading to lower headline discounts to NAV (~10% on average) Despite the higher-priced environment, PASF II has benefitted from robust value appreciation over shorter holding periods
68% 71% 79% 82% 82% 100%
32% 29% 21% 18% 18%
Record Date 3Q'16 4Q'16 4Q'17 4Q'18 1Q'19
Gains from Purchase Price Discount Gains from Value Appreciation 1 Past performance is not indicative of future results and there can be no assurance that the Fund will achieve comparable results and/or its investment objective. Please see the “Secondary Performance Endnotes” as well as the Disclosure Statement, in the Appendix for additional information. The returns for each investor in the Fund(s) may be materially different from those shown herein due to different fee schedules and timing on investment. This performance information is estimated and unaudited. 2 As of the Record Date the value is derived 100% from the discount. PASF I was launched in 2008. PASF II was launched in 2012. confidential 125 Constructing Highly-Diversifiedconfidential Portfolios
PA’s secondary investment team has constructed a diversified portfolio of assets with an emphasis on PA’s core expertise, the North American, middle-market buyout sector The prior PASF vehicles are comprised of buyout funds (57% of exposure), venture funds (23% of exposure), distressed / special situations funds (8% of exposure) and other opportunistic investments (13% of exposure) The PASF vehicles are highly diversified by underlying industry and geographic region, mitigating downside risk
Strategy (% of Total Exposure)1 Geographic Region (% of Reported Value)2 Industry (% of Reported Value)2
ROW Services 7% 17% Large Buyout Europe Industrial 16% 11% Products 10% Middle-Market Medical/Health Buyout Early-Stage 19% 41% Venture Communication 8% 9% Late-Stage Financial Venture US Computer/ Services 7% 82% Electronics 6% 23% Multi-Stage Consumer Venture Other Products Fund of Funds / 7% 7% 4% Other Special Distressed Fund of Funds 8% Situations Natural Resources 7% Energy 3% 1% 5% 2%
1 As March 31, 2019. Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. 2 “Reported Value” reflects the value of PASF I, PASF II’ and PASF III’s remaining underlying investments as of March 31, 2019 as reported on the underlying investments’ financial statements and includes co-investment transactions. As the foregoing chart presents the underlying investment industry and region composition of the remaining PASF I, II and III portfolio, note that the diversification percentages reported herein would differ if presented on the basis of ‘total exposure’ at the time each investment was made. confidential 126 Consistent Performance Throughconfidential Economic Cycles
PASF Returns by Investment Vintage Year1 By maintaining its disciplined and selective approach, PA seeks to achieve consistent returns regardless of macroeconomic backdrop Predecessor PASF vehicles have experienced similar valuation growth trajectories in diverse economic environments 3.0x 80% 63% 2.0x 60% 2.0x 1.7x 1.7x 1.8x 1.6x 1.5x 1.5x 1.6x 1.6x 1.4x 1.3x 1.3x NM NM 1.1x 40% NM 18% 20% 23% 21% 1.0x 16% 18% 16% 18% 15% 11% 20%
- - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total PASF Program Gross TVPI Gross IRR Net IRR
Net TVPI Trend Comparison: PASF I, PASF II & PASF III2 Net IRR Trend Comparison: PASF I, PASF II & PASF III3
1.9x 100% 1.8x 90% 1.7x 80% 1.6x 70% 1.5x 60% 1.4x 1.3x 50% 1.2x 40% 1.1x 30% 1.0x 20% 0.9x 10% PASF I PASF II PASF III PASF I PASF II PASF III
1 As of March 31, 2019. Past performance is not indicative of future results and there can be no assurance that the Fund will achieve comparable results and/or its investment objective. Please see the “Secondary Performance Endnotes” as well as the Disclosure Statement, in the Appendix for additional information. The returns for each investor in the Fund(s) may be materially different from those shown herein due to different fee schedules and timing on investment. This performance information is estimated and unaudited. 2 As of March 31, 2019. Chart begins with the first reporting period of associated value. 3 As of March 31, 2019. Due to the volatility of early reporting period IRRs, graph displays data starting with the fifth reporting period for each respective vehicle. confidential 127 PASF Risk Adjusted Return Profileconfidential PASF I Gross Multiple Distribution ($MM) Commentary $500 30 48 total secondary investments in PASF I $400 21 currently marked at a 1.75x gross multiple 14 $384 20 $300 10 PASF I loss ratio: 2.8% $200 $234 $225 10 31 of 48 investments, representing 68.8% of $100 2 1 contributed capital, are above a 1.50x gross $31 $12 - - multiple 0.00x - 0.50x 0.51x - 0.99x 1.00x - 1.50x 1.51x - 2.00x >2.00x Contributed Capital # of Investments PASF II Gross Multiple Distribution ($MM) Commentary $500 20 37 total secondary investments in PASF II 15 15 $400 currently marked at a 1.53x gross multiple $418 15 $300 PASF II loss ratio: 0.3% 10 $200 5 23 of 37 investments, representing 76.2% of $205 $100 2 5 - $16 contributed capital, are above a 1.40x gross - $48 - multiple 0.00x - 0.50x 0.51x - 0.99x 1.00x - 1.50x 1.51x - 2.00x >2.00x Contributed Capital # of Investments PASF III Gross Multiple Distribution ($MM) Commentary $500 17 20 30 total secondary investments in PASF III $400 15 currently marked at a 1.36x gross multiple $406 $300 PASF III loss ratio: 0.0% 8 10 $200 3 Early performance is tracking well for 2018 and $100 2 $176 5 - $37 $26 2019 investments - - 2 investments marked under a 1.00x gross 0.00x - 0.50x 0.51x - 0.99x 1.00x - 1.50x 1.51x - 2.00x >2.00x multiple; both marked at 0.99x Contributed Capital # of Investments Note: As of March 31, 2019; excludes co-investments. Please see “Secondary Performance Endnotes” in the Appendix hereto for complete details. There is no guarantee that PASF IV will have the same investment and return profile due to market conditions and other factors. An investor could lose some or all of their investment in the Fund. This information is estimated and unaudited. Gross returns are not reflective of the Net Returns realized by any investor in the Fund as Gross Returns do not include the deduction of management fees, performance fees and other Fund expenses. The Gross returns and Net Returns of other accounts and funds may be materially different from those shown herein. confidential 128 PASF III Portfolio confidential
Underlying Total Exposure Transaction # of Funds Type % Funded Closing Date Source Investments ($MM)1 Adventure 20 225 $31.2 Buyout/Growth/Venture 98% March 2016 Exclusive Runway 2 41 13.6 Buyout 92% June 2016 Limited Auction – Carve Out Pixel 2 27 6.8 Venture 82% November 2016 GP Directed Hillary 1 4 3.3 Venture 84% November 2016 Exclusive Saffron 40 313 132.3 Diversified 96% December 2016 Limited Auction – Carve Out Beehive 1 25 18.3 Buyout 94% December 2016 Exclusive Funnel 2 61 8.1 Fund of Funds 97% December 2016 Limited Auction – Carve Out Dynamite 1 11 14.7 Distressed 96% March 2017 Limited Auction – Carve Out Ursa 2 65 4.5 Growth 99% June 2017 Exclusive Austin 7 140 49.2 Diversified 91% June 2017 Limited Auction – Carve Out Community 3 53 6.7 Fund of Funds 98% December 2017 Limited Auction – Carve Out Nepal 2 38 16.6 Buyout 79% December 2017 Exclusive Navy 22 74 73.7 Buyout/Venture 95% December 2017 Limited Auction Keiko 2 40 14.9 Fund of Funds/Venture 100% March 2018 Limited Auction – GP Directed Pegasus 4 118 46.4 Buyout/Growth 84% March 2018 Limited Auction – Carve Out Goldmine 19 276 33.3 Diversified 95% March 2018 Limited Auction Foster 29 460 37.7 Diversified 96% June 2018 Limited Auction Zeus 1 9 39.9 Buyout 62% June 2018 Exclusive – GP Directed Wildcat 2 14 4.8 Buyout 96% June 2018 Exclusive Clone 1 1 7.5 Growth 100% September 2018 GP Directed Sierra 47 242 72.7 Diversified 91% September 2018 Limited Auction Titan 47 294 26.4 Buyout/Growth/Venture 96% December 2018 Exclusive Thunderbird 4 145 72.6 Fund of Funds 77% December 2018 Exclusive Helix 1 31 50.0 Growth 73% December 2018 GP Directed Haig 1 37 8.0 Fund of Funds 91% December 2018 Limited Auction – Carve Out Blaze 11 150 16.1 Diversified 95% December 2018 Limited Auction Orange 1 23 25.2 Fund of Funds 98% December 2018 Limited Auction – Carve Out Diamond 16 150 39.0 Diversified 93% December 2018 Limited Auction – Carve Out Rocky 3 28 23.1 Buyout/Special 67% January 2019 Limited Auction – Carve Out Formula 2 107 5.0 Venture 93% March 2019 Exclusive Spectrum 13 147 82.5 Diversified 88% March 2019 Limited Auction – Carve Out Buck 1 2 3.8 Venture 98% April 2019 Exclusive Coil 1 52 3.9 Venture 100% May 2019 Exclusive Twister 1 15 30.4 Buyout 78% June 2019 Limited Auction – Carve Out Co-Investments -- 46 180.7 Buyout 100% Various GP Directed Total 312 3,464 $1,202.9 92%
Note: As of June 30, 2019. PASF III has committed $31 million to PAPEF VIII-D, L.P. and $150 million to PAPEF IX-D, L.P. (i.e., the “Co-investment Sector” of PAPEF VIII and PAPEF IX, respectively). The foregoing Total Exposure reflects the entire $181 million of commitments; however, no additional management fees or performance allocation are being charged by PAPEF VIII-D, L.P. and PAPEF IX-D, L.P. to PASF III with respect to these commitments. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. confidential 129 PASF III Portfolio Investment Performanceconfidential Total Exposure Transaction Gross DPI2 Gross RVPI2 Gross TVPI2 Gross IRR2 Net IRR ($MM)1 Adventure $31.2 0.92x 0.83x 1.75x 31.3% Runway 13.6 0.87x 0.68x 1.55x 68.5% Pixel 6.8 0.22x 1.31x 1.54x 21.7% Hillary 3.3 2.45x 0.27x 2.72x >100% Saffron 132.3 0.91x 0.59x 1.51x >100% Beehive 18.3 0.89x 1.30x 2.19x 52.2% Funnel 8.1 0.58x 0.70x 1.27x 25.6% Dynamite 14.7 0.56x 1.43x 1.98x 86.1% Ursa 4.5 0.43x 0.96x 1.39x 26.9% Austin 49.2 0.37x 0.85x 1.21x 15.8% Community 6.7 0.42x 1.13x 1.54x 49.3% Nepal 16.6 0.25x 0.97x 1.23x 23.3% Navy 73.7 0.58x 0.57x 1.14x 16.3% Keiko 14.9 0.44x 1.20x 1.64x 88.7% Pegasus 46.4 0.16x 1.48x 1.64x 69.7% Goldmine 33.3 0.35x 0.93x 1.28x 39.9% Foster 37.7 0.28x 1.02x 1.30x 55.4% Zeus 39.9 0.12x 0.87x 1.00x (0.7%) Wildcat 4.8 0.06x 1.13x 1.19x 31.5% Clone 7.5 - 1.00x 1.00x (0.2%) Sierra 72.7 0.11x 1.09x 1.21x 68.7% Titan 26.4 - 2.05x 2.05x >100% Thunderbird 72.6 0.05x 1.33x 1.38x 90.7% Helix 50.0 - 1.18x 1.18x 64.2% Haig 8.0 0.04x 1.37x 1.41x >100% Blaze 16.1 0.06x 1.31x 1.37x >100% Orange 25.2 0.09x 1.24x 1.33x >100% Diamond 39.0 0.14x 1.04x 1.18x 95.3% Rocky 23.1 0.08x 1.00x 1.08x 60.8% Spectrum 82.5 - 1.12x 1.12x NM Co-Investments 180.7 0.18x 1.01x 1.19x 15.1% Total $1,159.8 0.29x 1.03x 1.32x 41.9% 41.7% Note: As of March 31, 2019. PASF III has committed $31 million to PAPEF VIII-D, L.P. and $150 million to PAPEF IX-D, L.P. (i.e., the “Co-investment Sector” of PAPEF VIII and PAPEF IX, respectively). The foregoing Total Exposure reflects the entire $181 million of commitments; however, no additional management fees or performance allocation are being charged by PAPEF VIII-D, L.P. and PAPEF IX-D, L.P. to PASF III with respect to these commitments. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. 2 Please see “Secondary Performance Endnotes” in the Appendix hereto for complete details. Investments that recently closed and have not yet generated meaningful performance are deemed Not Meaningful “NM”. confidential 130 PASF IV Overview & Key Terms confidential
PASF IV Overview Expected launch in Q4 2019 Target: $1.5B LP-friendly fee structure based on closed investments Similar size and strategy as PASF I, II and III Fund offers U.S. (“Onshore”) vehicle and Cayman Islands (“Offshore”) vehicle for non-U.S. investors Exposure to co-investments
PASF IV Key Terms1
Investment Period Commitments may be made through the 5th anniversary of the Fund’s final closing date GP Commitment 3.0% of total commitments Preferred Return 10.0% preferred return Carried Interest 10.0% on net gains, payable only after full return of invested capital
Series I Fees Series II Fees Management Fee (Closed investment option) (LP commitment option) Investment Period Thereafter Investment Period Thereafter Description (% of value of closed (% of NAV of the Fund) (% of value of LP’s (% of NAV of the Fund) investments) commitments) Standard Fee Schedule 1.25% 1.25% 0.85% 1.25% Large Investor (˃$50MM USD) Incentive 1.125% 1.125% 0.80% 1.125% Early Closer Incentive (before 3/31/2020) 1.125% 1.125% 0.80% 1.125% Early Closer & Large Investor Incentive 1.00% 1.00% 0.75% 1.00%
1 See the PASF IV LPA for complete details. confidential 131 Management Fee & Carried Interestconfidential Comparison
PA believes that PASF IV’s management fee structure on closed investments is expected to result in lower overall fees paid by its limited partners Majority of compensation to PA is through carried interest, resulting in a further alignment of interest with its limited partners
Hypothetical PASF IV Fee Comparison ($MM)1
(36.6%) +5.2% (19.3%) $3.7 $4.0 $3.0 $3.0 $2.2 $2.0 $1.4 $1.6 $1.6 $1.0 $0.0 Mgmt Fees Carried Interest Total Fees
Based on Committed Based on Closed Investments (PA)
PASF IV Fees vs. Competitors ($MM) 2
PASF IV vs. Competitors PASF IV vs. Competitors PASF IV vs. Competitors (48%) (42%) (17%) (44%) (59%) (43%) (13%) (15%) (19%) +7% (9%) (33%) (34%) (30%) (18%) (25%) (42%) (38%) $6.0 $5.2 $4.9 $4.6 $4.3 $3.7 $4.0 $4.0 $3.4 $3.0 $2.7 $2.4 $2.5 $2.4 $2.4 $1.7 $1.6 $1.9 $1.9 $2.0 $1.5 $1.8 $2.0 $1.4 $0.0 Mgmt Fees Carried Interest Total Fees
PASF IV Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6
1 Hypothetical Fee comparison based on $25 million in committed capital. Assumes fee of 1.25% on closed investments as defined in the PASF IV LPA. 2 The aforementioned represents Portfolio Advisors current view of its competitors. Competitor management fee & carried interest information is based on fund private placement memorandums and fund marketing materials. Projected Fees utilize PASF IV’s projected cash flows and layer in competitor fund fees. PA’s management fee assumes standard fee of 1.25% on closed investments as defined in the PASF IV LPA. A change in assumptions and a change in fee options would lead to different outcomes. Past performance is not indicative of future results and there can be no assurance that the Fund will achieve comparable results and/or its investment objective . confidential 132 PASF II Portfolio confidential
Underlying Total Exposure Transaction # of Funds Type % Funded Closing Date Source Investments ($MM)1 Globe 1 12 $2.6 Distressed 82% September 2012 Limited Auction - Carve Out Carnival 4 98 9.7 Diversified 85% September 2012 Limited Auction - Carve Out House 3 29 15.1 Buyout/Energy 78% December 2012 Exclusive Minerva 6 62 13.7 Diversified 92% March 2013 Limited Auction - Carve Out Duo 2 69 12.0 Buyout 75% March 2013 Exclusive Hollywood 1 12 6.0 Buyout 83% March 2013 Limited Auction - GP Directed Portion Mayonnaise 2 19 36.9 Buyout 79% March 2013 Exclusive Taurus 1 13 3.0 Venture 100% June 2013 Limited Auction - Carve Out Tag 1 6 7.5 Buyout 84% June 2013 Exclusive Atlas 9 133 216.2 Buyout/Energy 76% September 2013 Exclusive Ptah 3 19 3.7 Buyout/Venture 94% June 2014 Limited Auction - Carve Out Empire 1 9 7.7 Buyout 99% June 2014 Limited Auction - Carve Out Equinox 5 43 12.4 Energy 95% June 2014 Exclusive Copper 1 13 33.0 Buyout 89% September 2014 Exclusive Vicarage 23 149 51.8 Venture 99% September 2014 Limited Auction - Carve Out Hudson 6 74 26.7 Venture 94% December 2014 Limited Auction - Carve Out Emergence 2 5 11.5 Venture 100% December 2014 GP Directed Lion 21 327 18.2 Diversified 96% December 2014 Limited Auction Elysium 1 7 6.1 Buyout 87% December 2014 Limited Auction - Carve Out Amazon 11 156 18.9 Diversified 95% December 2014 Exclusive Pebble 1 6 13.1 Buyout 95% December 2014 Limited Auction - Carve Out Mercury 1 3 5.0 Venture 50% March 2015 Exclusive Celebrity 10 152 56.2 Buyout 81% March 2015 Limited Auction - Carve Out Vista 4 74 18.4 Venture 92% March 2015 Limited Auction - Carve Out World 1 N/A 12.7 Venture 0% June 2015 GP Directed Royal 13 150 62.0 Buyout/Venture 94% June 2015 Limited Auction - Carve Out Iris 1 70 9.4 Fund of Funds 95% June 2015 Limited Auction - Carve Out Panther 17 180 26.3 Venture 98% September 2015 Exclusive Butler 21 163 30.8 Buyout/Venture 96% September 2015 Limited Auction - Carve Out Pelican 1 19 3.4 Venture 54% December 2015 GP Directed Eagle 14 85 8.1 Buyout/Venture 99% December 2015 Limited Auction Cadabra 5 37 20.5 Buyout 64% December 2015 Limited Auction Adventure 20 225 31.2 Buyout/Growth/Venture 98% March 2016 Exclusive Autobahn 2 76 5.3 Fund of Funds 88% June 2016 Limited Auction - Carve Out Runway 2 41 13.6 Buyout 92% June 2016 Limited Auction - Carve Out Pixel 2 27 6.8 Venture 92% December 2016 Exclusive Saffron 40 313 44.1 Diversified 96% December 2016 Limited Auction - Carve Out Co-Investments -- 39 141.5 Buyout 100% Various GP Directed Total 259 2,915 $1,021.1 90% Note: As of June 30, 2019. In December 2012, PASF II committed $50 million to PAPEF VII-D, L.P. (i.e., the “co-investment sector” of PAPEF VII) and in September 2013, PASF II committed $34.5 million to PAPEF VIII-D, L.P. In June 2014, PASF II committed an additional $52.0 million to PAPEF VIII-D, L.P. The foregoing Total Exposure reflects the entire $136.5 million of commitments, however, no additional management fees or performance allocation are being charged by PAPEF VII-D, L.P. or PAPEF VIII-D to PASF II with respect to these commitments. In addition to the $136.5 million of aforementioned commitments, PASF II committed $5.0 million for a co-investment in TCP Templar in June 2013. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. confidential 133 PASF II Portfolio Investment Performanceconfidential
Total Exposure Transaction Gross DPI2 Gross RVPI2 Gross TVPI2 Gross IRR2 Net IRR ($MM)1 Globe $2.6 0.01x 0.83x 0.84x (2.7%) Carnival 9.7 1.76x 0.63x 2.39x 26.1% House 15.1 1.54x 0.16x 1.70x 24.3% Minerva 13.7 1.12x 0.43x 1.55x 16.9% Duo 12.0 1.69x 0.22x 1.91x 34.5% Hollywood 6.0 1.83x 0.31x 2.14x 30.6% Mayonnaise 36.9 1.67x 0.60x 2.28x 41.7% Taurus 3.0 1.22x 0.37x 1.60x 18.6% Tag 7.5 1.06x 0.21x 1.27x 8.1% Atlas 216.2 1.12x 0.33x 1.45x 20.1% Ptah 3.7 2.11x 0.11x 2.22x 46.0% Empire 7.7 1.17x 0.17x 1.33x 11.7% Equinox 12.4 0.93x 0.19x 1.12x 8.9% Copper 33.0 1.76x 0.02x 1.78x 34.0% Vicarage 51.8 1.21x 0.27x 1.48x 20.2% Hudson 26.7 0.78x 1.05x 1.83x 18.1% Emergence 11.5 1.21x 0.30x 1.51x 16.4% Lion 18.2 0.95x 0.33x 1.28x 12.1% Elysium 6.1 1.31x 0.00x 1.32x 30.4% Amazon 18.9 1.23x 0.35x 1.58x 23.6% Pebble 13.1 1.01x 0.02x 1.02x 2.0% Mercury 5.0 - 2.08x 2.08x 24.7% Celebrity 56.2 1.12x 0.33x 1.45x 24.3% Vista 18.4 0.60x 0.30x 0.90x (4.8%) World 12.7 0.58x 1.37x 1.94x 28.8% Royal 62.0 0.86x 0.48x 1.33x 14.0% Iris 9.4 1.16x 0.81x 1.96x 38.4% Panther 26.3 1.21x 0.31x 1.52x 20.8% Butler 30.8 1.13x 0.27x 1.40x 34.8% Pelican 3.4 0.45x 0.80x 1.25x 9.0% Eagle 8.1 1.10x 0.27x 1.37x 21.3% Cadabra 20.5 0.65x 0.61x 1.26x 11.9% Adventure 31.2 0.92x 0.83x 1.75x 31.3% Autobahn 5.3 0.87x 0.45x 1.32x 23.5% Runway 13.6 0.87x 0.68x 1.55x 68.5% Pixel 6.8 0.22x 1.31x 1.54x 21.7% Saffron 44.1 0.91x 0.59x 1.51x >100% Co-Investments 141.5 0.85x 0.84x 1.69x 16.1% Total $1,021.1 1.05x 0.51x 1.56x 20.0% 16.1% Note: As of March 31, 2019. In December 2012, PASF II committed $50 million to PAPEF VII-D, L.P. (i.e., the “co-investment sector” of PAPEF VII) and in September 2013, PASF II committed $34.5 million to PAPEF VIII-D, L.P. In June 2014, PASF II committed an additional $52.0 million to PAPEF VIII-D, L.P. The foregoing Total Exposure reflects the entire $136.5 million of commitments, however, no additional management fees or performance allocation are being charged by PAPEF VII-D, L.P. or PAPEF VIII-D to PASF II with respect to these commitments. In addition to the $136.5 million of aforementioned commitments, PASF II committed $5.0 million for a co-investment in TCP Templar in June 2013. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. 2 Please see “Secondary Performance Endnotes” in the Appendix hereto for complete details. confidential 134 PASF I Portfolio confidential Underlying Total Exposure Transaction # of Funds Type % Funded Closing Date Source Investments ($MM)1 Lonestar 2 7 $7.1 Buyout 100% March 2008 Broken Auction Sideline 3 25 2.8 Growth 90% June 2008 GP Directed Vintage 2 4 28.3 Buyout 74% June 2008 Secondary Relationship Mercury 4 90 9.7 Buyout/Venture 75% September 2008 GP Directed Leeds 2 7 8.2 Buyout 66% September 2008 GP Directed Adam 9 200 41.7 Buyout/Distressed 55% December 2008 Limited Auction - GP Directed Portion Lamp 4 61 16.9 Buyout 80% December 2008 Limited Auction - Carve Out Bus 27 500 36.7 Diversified 80% March 2009 Limited Auction - GP Directed Portion Mayflower 15 280 31.2 Diversified 45% March 2009 Exclusive Bear 1 9 3.4 Buyout 45% June 2009 Exclusive Voyager 1 33 5.8 Venture 85% June 2009 Limited Auction Preferred Transaction 1 35 20.0 Preferred N/A September 2009 GP Directed Striker 1 6 6.3 Buyout 60% December 2009 Limited Auction - Carve Out Portsmouth 1 7 4.1 Buyout 99% March 2010 GP Directed Harper 1 150 6.4 Distressed 100% June 2010 Limited Auction - Carve Out Raintree 1 71 9.8 Special 84% June 2010 Limited Auction - GP Directed Portion Element 1 18 3.1 Venture 80% September 2010 Limited Auction Energy 1 12 5.9 Energy 68% September 2010 Exclusive EPF 1 14 24.0 Distressed 63% September 2010 GP Directed Dome 3 47 27.7 Buyout/Venture 44% December 2010 Limited Auction - Carve Out Boston 2 22 17.8 Buyout 43% December 2010 Exclusive Quaker 5 59 39.6 Buyout/Venture 89% December 2010 Broken Auction Culzean 13 176 41.0 Diversified 68% December 2010 Limited Auction Nautilus 1 8 10.9 Buyout 52% December 2010 Limited Auction - Carve Out Sparta 1 4 20.2 Buyout 47% December 2010 Limited Auction - Carve Out Link 1 3 4.2 Buyout 94% December 2010 GP Directed Oak 1 42 12.9 Venture 71% December 2010 Limited Auction Helen 18 300 74.0 Diversified 75% March 2011 Limited Auction - Carve Out Alpha 1 29 25.0 Buyout 75% March 2011 Limited Auction - Carve Out Seagull 1 17 5.1 Buyout 95% March 2011 Limited Auction - Carve Out Gamma 5 53 15.7 Buyout 82% June 2011 Limited Auction - GP Directed Portion Ace 2 36 31.4 Buyout 42% June 2011 Limited Auction - Carve Out Tana 1 18 9.7 Buyout 95% June 2011 Limited Auction - Carve Out Barbeque 1 31 24.8 Buyout 85% September 2011 Limited Auction - Carve Out Energize 4 36 28.7 Diversified 76% September 2011 Exclusive Blue 4 198 40.5 Diversified 76% September 2011 Exclusive Spencer 2 130 20.9 Growth 80% September 2011 Limited Auction - Carve Out Sword 11 84 60.3 Diversified 92% September 2011 Limited Auction - Carve Out Jivago 11 113 50.0 Buyout 65% December 2011 Exclusive Hanse 1 135 2.7 Special 93% December 2011 Limited Auction - Carve Out Gold 1 17 39.8 Distressed 67% December 2011 Limited Auction - Carve Out Palin 3 78 26.9 Diversified 68% December 2011 Exclusive Raider 5 63 16.1 Venture 99% March 2012 Limited Auction - Carve Out Boise 1 18 6.3 Venture 73% March 2012 Exclusive Griffin 1 8 15.4 Buyout 98% June 2012 Limited Auction - Carve Out Pasar 2 19 6.6 Venture 95% June 2012 Limited Auction - Carve Out Element II 6 175 27.8 Diversified 78% June 2012 Limited Auction - Carve Out Magnolia 3 27 26.9 Buyout 90% June 2012 Limited Auction - GP Directed Portion Co-Investments -- 19 152.1 Buyout 100% Various GP Directed Total 189 3,494 $1,152.4 76% Note: As of June 30, 2019. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. confidential 135 PASF I Portfolio Investment Performanceconfidential Total Exposure Transaction Gross DPI2 Gross RVPI2 Gross TVPI2 Gross IRR2 Net IRR ($MM)1 Lonestar $7.1 1.51x - 1.51x 11.9% Sideline 2.8 1.57x 0.12x 1.69x 14.6% Vintage 28.3 0.25x - 0.25x (23.8%) Mercury 9.7 1.45x 0.17x 1.62x 9.1% Leeds 8.2 1.08x 0.32x 1.40x 6.2% Adam 41.7 1.91x 0.21x 2.12x 18.3% Lamp 16.9 3.11x 0.17x 3.28x 30.6% Bus 36.7 2.02x 0.21x 2.23x 22.1% Mayflower 31.2 1.76x 0.37x 2.14x 18.7% Bear 3.4 2.06x - 2.06x 17.1% Voyager 5.8 0.93x 0.11x 1.04x 0.7% Preferred Transaction 20.0 1.38x - 1.38x 27.2% Striker 6.3 1.93x - 1.93x 29.8% Portsmouth 4.1 1.46x - 1.46x 23.5% Harper 6.4 1.73x 0.07x 1.81x 15.8% Raintree 9.8 1.60x 0.50x 2.11x 23.2% Element 3.1 0.64x 0.47x 1.10x 1.8% Energy 5.9 0.29x 0.04x 0.33x (19.0%) EPF 24.0 1.64x 0.01x 1.65x 20.0% Dome 27.7 1.51x 0.41x 1.92x 15.0% Boston 17.8 1.59x 0.30x 1.89x 15.1% Quaker 39.6 1.80x 0.01x 1.81x 31.5% Culzean 41.0 1.41x 0.29x 1.70x 16.2% Nautilus 10.9 1.61x 0.28x 1.89x 16.7% Sparta 20.2 1.33x 0.03x 1.36x 8.8% Link 4.2 1.74x - 1.74x 24.3% Oak 12.9 0.82x 0.26x 1.08x 1.6% Helen 74.0 1.25x 0.11x 1.36x 11.5% Alpha 25.0 1.71x - 1.71x 19.4% Seagull 5.1 1.37x 0.04x 1.42x 21.2% Gamma 15.7 1.28x 0.24x 1.52x 11.6% Ace 31.4 1.45x 0.27x 1.72x 16.6% Tana 9.7 1.23x - 1.23x 7.6% Barbeque 24.8 1.91x 0.15x 2.06x 19.4% Energize 28.7 1.16x 0.18x 1.34x 7.2% Blue 40.5 1.67x 0.28x 1.96x 19.5% Spencer 20.9 1.19x 0.60x 1.80x 16.2% Sword 60.3 1.30x 0.05x 1.35x 12.6% Jivago 50.0 1.56x 0.18x 1.74x 17.3% Hanse 2.7 1.90x 0.01x 1.91x 34.2% Gold 39.8 1.80x 1.10x 2.90x 38.3% Palin 26.9 1.96x 0.67x 2.63x 27.8% Raider 16.1 0.85x 0.00x 0.85x (3.7%) Boise 6.3 0.72x 0.42x 1.15x 2.7% Griffin 15.4 1.40x 0.02x 1.41x 15.6% Pasar 6.6 1.34x 0.90x 2.24x 20.8% Element II 27.8 1.53x 0.17x 1.70x 21.8% Magnolia 26.9 1.83x 0.01x 1.85x 30.7% Co-Investments 152.1 1.59x 0.35x 1.93x 16.7% Total $1,152.4 1.52x 0.26x 1.78x 16.3% 13.7% Note: As of March 31, 2019. 1 Please see the defined term for “Total Exposure without adjustments” in the “PASF Transaction Endnotes” in the Appendix hereto. 2 Please see “Secondary Performance Endnotes” in the Appendix hereto for complete details. confidential 136 University of West Florida Foundation: Hedge Fund Recommendation Q3 2019
309 East Paces Ferry Road, Suite 600 | Atlanta, GA 30305 | T 888.317.2810 | F 470.823.3178 | theatlantaconsultinggroup.com 137 HEDGE FUND RECOMMENDATION
• Ironwood • Core holding of conservative, diversified fund of hedge funds
• Canyon Balanced • Credit-focused, multi-strategy Hedge Fund with track record demonstrating ability to navigate multiple credit markets with a low correlation to US equity markets
• Renaissance Technologies Institutional Equities Fund (“RIEF”) • Systematic long/short equity hedge fund seeking to generate alpha in the equity markets • Exhibits low correlation to US equity markets with half the volatility
138 IRONWOOD
• Firm AUM: $3.4bn (as of December 2018) • Strategy Inception: 1996 • Strategy AUM: $3.4bn (across all vehicles employing the same strategy) • Investment Minimum: $50,000 • Fees: 1.2% management fee + fund expenses • Liquidity: One year soft lock-up (5% early redemption fee); Semi annual redemptions with 95 days notice • Fund Administrator: Bank of New York Mellon • Auditor: Ernst & Young • Custodian: Bank of New York Mellon • Legal Counsel: Shearman & Sterling
Terms shown are for the registered fund. Ironwood also manages private funds with higher minimum investments. See offering documents for full terms. 139 CANYON BALANCED FUND
• Firm AUM: $26.1bn (as of April 2019) • Strategy Inception: 2004 • Strategy AUM: $3.1bn for Canyon Balanced; $13.8bn for all multi-strategy hedge funds (as of April 2019) • Investment Minimum: $250,000 • Fees: 1.5% management fee, 20% performance fee • Liquidity: Quarterly redemptions with one quarter notice subject to a 25% investor level gate • Fund Administrator: International Fund Services, LLC • Auditor: Deloitte & Touche LLP • Prime Brokers/Custodians: Deutsche Bank; CSFB; JP Morgan; Bank of America; Northern Trust • Legal Counsel: Sidley Austin LLP (domestic); Maples and Caider (Cayman)
See offering documents for full terms.
140 Canyon Partners Fact Sheet | October 2019 Canyon Balanced Funds
2000 Avenue of the Stars, 11th Floor | Los Angeles, CA 90067 | Tel: 310.272.1000 | www.canyonpartners.com
Firm Overview Current CBF Asset Allocation1
Performance-Driven | Over its 14-year history, CBF has generated a net return 110% CBs, Privates & Munis 8% 1.3x that of the S&P 500 with ~ 2/3 the volatility and little to no leverage 100% Experienced | Founded in 1990, and SEC registered since 19943,4 Process- 90% Oriented / | $25.5 billion in firm-wide assets ($3.0 billion in CBF) with 246 Corp. Bonds 25% Event-Driven Significant ~40% employees (50 investment professionals in our Hedge Fund / Distressed / CLO / 80% Long-Only strategies and 28 in Real Estate)5 70% Risk Arb 5% Global | Headquartered in Los Angeles with offices in Hong Kong, London, New York, Seoul, Shanghai and Tokyo 60% Value Equities 19% Higher-Return Seeking Stable | Average tenure at Canyon of Investment Partners & Real Estate Co- 50% ~ 30% Heads is 14 years (with 24 years of industry experience) Post-Reorg Equities 10% 40% Aligned | Canyon employees and management are collectively the largest Securitized Assets investor across Canyon’s commingled funds 30% (mostly RMBS) 17% Ballast 2 20% Unconstrained | Fundamental, value-oriented approach across asset classes, ~40% including loans, bonds, converts, equity, and securitized products 10% Loans 23% Specialized | Focus on securities characterized by complexity, transitioning buyer bases, restructurings, & other forms of disruption that can disconnect 0% Credit Hedges -6% prices from intrinsic value Hedges~5% -10% Equity Hedges -1% CBF Historical Risk/Return Profile6 CBF Upside / Downside Capture vs. S&P 5007 Since CBF Inception (6/1/2004) Cumulative Annualized Sharpe Volatility Returns Returns Ratio Upside Capture Downside Capture 80% 2019 YTD 8.9% - - - 60% 65% Trailing 3 Year 24.9% 7.7% 5.8% 1.07 40%
Trailing 10 Year 124.0% 8.4% 6.4% 1.23 20%
0% Since Inception 334.7% 10.1% 9.1% 0.96 (Jun 2004) -20% -36% -40% Growth of $1,000 Since CBF Inception8
$5,000 CBF (Net)
$4,500 S&P 500 (Gross) $4,347 (10.1%) $4,000 Barclays US HY (Gross) CS LL Index (Gross) $3,500 $3,568 (8.8%)
$3,000 $3,048 (7.6%)
$2,500
$2,000 $1,993 (4.6%)
$1,500
$1,000
$500
141 CBF Fact Sheet | October 2019 Firm-Wide AUM5 $25.5B Open-End Multi-Strategy Hedge Funds Limited-Life Distressed Funds & Managed Accounts $13.6B $3.2B $10.6B $3.0B $1.3B $1.9B Canyon Value Realization Funds Canyon Balanced Funds Canyon Distressed Opportunity Single Investor & Diversified, Value-Oriented More Concentrated, Value / Funds & Hybrid Distressed Accounts Separately Managed Accounts Multi-Strategy with a Credit Focus Event-Driven Multi-Strategy Distressed, Special Situations Multi-Strategy
Canyon CLOs Canyon Partners Real Estate River Canyon ICE Canyon $4.4B $2.0B $1.6B $0.7B US Performing Credit Real Estate Debt and Equity Long-Biased Credit International / EM Credit
CBF Fund Terms Investment Partners
Inception Date June 2004 Joshua Friedman & Mitchell Julis Founding Partners & Co-CIOs Description Created to provide investors with a vehicle that has a nimble and relatively flexible mandate across Canyon’s Investment Partners Years at Sector Coverage investment universe. Asset allocation shifts are more Canyon pronounced in CBF versus Canyon’s larger flagship fund, and CBF has a higher volatility tolerance and Jonathan Heller 11 Financials / Tech / Municipals / higher return target. Consumer Products
Investment Full spectrum of asset classes, including bank loans, HY Raj Iyer 14 Energy / Power / Retail / Focus bonds, distressed / special situation securities & claims, Transportation / Asian Special munis, converts, equities, CDS, and securitized assets Situations (RMBS, CMBS, NPLs, CLOs, aircraft ABS, etc.) George Jikovski 12 Head of Structured Products & Strategies Event-driven & performing credit, restructurings, Long Only catalyst-driven equities, risk arb, primary capital Todd Lemkin 16 Co-CIO of Corporate Investments/ solutions, liquidations & litigation plays, among others European Special Situations / Media / Telecom / Cable Geographic Developed markets (predominately US and European Focus assets, with a growing footprint in Asia). Chaney Sheffield 11 Gaming / Lodging / Packaging / Liquidity Quarterly, with prior written notice required on or Healthcare before the last business day of the immediately preceding fiscal quarter; 25% investor-level gate Chris Heine 14 Co-Head of Trading (Equity)
Fees 1.5% / 20% (high water mark) Desmond Lynch 26 Co-Head of Trading (Debt)
This document is not an offering of securities for sale in any jurisdiction. These materials are qualified in their entirety by any offering memorandum and subscription documents prepared by or on behalf of Canyon in connection with any offering to invest in a fund managed by it. Any investment in the funds discussed above involves significant risk, including the risk of loss of all or a portion of your investment. 1 CBF asset allocation data is based on estimates as of 10/1/2019. CBF’s gross long and short exposures (excluding macro/hedges) are 110% and -3%, respectively. 2 Canyon categorizes “ballast” assets as loans, cash, liquidation, and securitized assets. 3 Canyon Capital Management, L.P. was the predecessor investment advisor to Canyon Capital Advisors, LLC and registered with the SEC in 1994. 4 Registration with the SEC as an investment adviser, does not, in and of itself, imply a certain level of risk or training. 5 Assets Under Management (“AUM”) are as of 9/1/2019 and include redemptions and subscriptions associated with the 8/31/2019-9/1/2019 dealing date, respectively. The Canyon Value Realization Funds AUM is inclusive of both onshore and offshore vehicles. The onshore vehicle, the Canyon Value Realization Fund, L.P. (“VRF”), was launched in November 1993. The offshore vehicle, the Canyon Value Realization Fund (Cayman), Ltd. (“CVRF”), was launched in January 1995. AUM figures for drawdown vehicles are inclusive of uncalled capital. 6 Returns and volatility (annualized standard deviation) are calculated through 9/30/2019. All fund returns are total returns and include the reinvestment of dividends and other earnings from securities or other investments held by the Fund. Returns are based on estimates for an investor who has been invested in the fund since its inception date through 9/30/2019. 7 Net returns are for an investor who has been invested in the fund since the find’s inception through 9/30/2019. Upside capture is calculated by taking the fund’s monthly return during months when the index had a positive return and dividing it by the benchmark return during that same month. Downside capture is calculated by taking the fund’s monthly return during the periods of negative benchmark performance and dividing it by the index return. Past performance is not indicative of future performance. The S&P 500 is provided for informational purposes only as an indicator of how the broader US financial market performed during the time periods displayed. 8 The hypothetical growth of $1,000 assumes an investment in CBF or the respective index since the fund’s inception. Investors entering the fund at a date other than inception may have different returns142or rates of growth than those shown above. Performance fees are not charged during periods of loss carry forward until such time as the losses are made up. RENAISSANCE INSTITUTIONAL EQUITIES FUND (“RIEF”)
• Firm AUM: $84bn (as of May 2019) • Strategy Inception: 2005 • Strategy AUM: $29.3bn (as of May 2019) • Option A: • Investment Minimum: $100,000 • Fees: 0.85% access/management fee, 10% performance fee • Option B: • Investment Minimum: $1 million • Fees: 0.75% access/management fee, 10% performance fee • Liquidity: Monthly redemptions with 2 months + 10 business days notice • Fund Administrator: Bank of New York Melon • Auditor: PwC • Custodians: Bank of New York Mellon; Wells Fargo • Prime Brokers: Deutsche Bank; JP Morgan; Morgan Stanley • Legal Counsel: Katten Muchin Rosenman LLP
See offering documents for full terms.
143 September 30, 2019
RIEF LP ONSHORE
FIRM OVERVIEW Renaissance Technologies (“Rentec”) was founded in 1982 by James Simons, PhD., a renowned mathematician and former government FIRM FACTS code breaker. Dr. Simons left academia to develop a systematic investment strategy based on proprietary research. Since its inception, Manager Name Location the firm has continued to develop investment strategies that are based on the statistical analysis of fundamental, technical and other Renaissance New York, NY deeply rooted mathematical approaches. The firm’s flagship fund, The Medallion Fund, was launched in 1989 and has been closed to new investors since 1993. From 2002 to 2005, all non-employee capital was returned to outside investors and is now completely made Technologies up of internal capital. In 2004, David Lippe, was tasked with developing market signals with longer investment horizons than that of Ownership the Medallion Fund. The longer-term models were used to launch a series of funds that were released in 2005 when the firm opened 100% Employee-Owned the Renaissance Institutional Equity Fund (RIEF). Currently, Rentec has three funds that are open today, the RIEF, the Renaissance Institutional Diversified Alpha Fund (RIDA) and the Renaissance Institutional Diversified Global Equity Fund (RIDGE). Rentec is a Firm Inception Firm Assets (M) Registered Investment Adviser with the SEC and is CFTC/NFA registered as a CTA, CPO and a Swap Firm. 1982 $114,000
STRATEGY OVERVIEW STRATEGY FACTS RIEF is a systematic, long-biased, long/short equity strategy with a long-term time horizon. The investment objective of the Fund Inception Date Strategy AUM (M) is to exceed the S&P 500 Index ("Index") returns over time with lower volatility by investing in U.S. and non-U.S. equity securities August 2005 $32,400 publicly traded on U.S. exchanges. It seeks to achieve this objective by systematically capitalizing on medium to long term market inefficiencies that produce alpha over time. Specifically, RIEF seeks a higher Sharpe ratio than the Index and a beta of 0.4 or lower Strategy Investment Style to the Index. Since inception, volatility has been approximately 60% that of the S&P 500. The investment process is automated Equity Long/Short Quantitative and employs proprietary statistical models of price prediction, risk and trading costs to build a portfolio of thousands of long and short positions. The portfolio has a net long exposure of 100% and accomplishes this by targeting gross long exposure of 175% and Subscription Redemption a gross short exposure of 75%. RIEF has approximately 30 prediction signals approximately 40% are technical based, 40% are Monthly Monthly fundamental based and 20% are categorized as other or miscellaneous. The predictive models are all bottom-up, focusing on individual stocks. Lock-Up Soft-Lock None No
Management Fee Incentive Fee 0.35% 10.0%
Benchmark 1 HFRI Equity Hedge (Total) Index CUMULATIVE RETURN
400% Benchmark 2
RIEF LP Onshore S&P 500 TR (1989) 350% HFRI Equity Hedge (Total) Index 300% S&P 500 TR (1989)
250% ANNUAL PERFORMANCE vs. BENCHMARKS 2019 2018 2017 2016 200% Fund 10.92% 8.58% 15.36% 21.63% BM 8.05% (7.13%) 13.29% 5.47% 150% BM2 20.55% (4.38%) 21.83% 11.96%
100%
50%
BENCHMARK RELATIVE 0% BM1 BM2 0.75 -50% Up Capture 0.51 Down Capture (0.12) 0.16 10.41% -100% Annualized Alpha 8.80% Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Beta 0.32 0.31
MONTHLY PERFORMANCE - NET OF FEES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD BM1 BM2 2019 3.12% 0.60% 0.93% 2.03% (2.86%) 1.42% 1.88% 0.93% 2.49% 10.92% 8.05% 20.55% 2018 2.13% (2.99%) 2.59% (0.97%) (0.52%) 1.24% 4.21% 2.51% 1.46% (2.34%) 3.32% (2.06%) 8.58% (7.13%) (4.38%) 2017 (0.95%) 3.47% 0.77% 2.56% 4.44% (2.49%) 1.20% 1.72% (0.64%) 4.21% 2.68% (2.28%) 15.36% 13.29% 21.83% 2016 6.95% 2.94% 2.42% (4.07%) 0.60% 4.63% 3.12% (1.83%) (1.89%) 3.40% (1.66%) 5.78% 21.63% 5.47% 11.96% 2015 2.00% (0.55%) 0.71% (1.39%) (2.07%) (1.62%) 6.78% (0.22%) 7.63% 4.46% (0.36%) 1.45% 17.52% (0.96%) 1.38% 2014 (4.98%) 1.80% 4.21% (0.10%) 0.98% (3.28%) (0.07%) 1.70% 3.01% 6.39% 3.55% 1.10% 14.68% 1.81% 13.69% 2013 4.68% 2.29% 3.72% 1.53% (3.05%) (0.43%) 1.81% (4.79%) 1.68% 8.66% 1.10% (0.07%) 17.78% 14.28% 32.39% 2012 0.05% 3.46% 4.97% 0.99% (1.32%) (0.19%) 1.82% (1.25%) 1.70% (1.69%) 2.51% (1.76%) 9.42% 7.41% 16.00% 2011 0.70% 3.16% 4.40% 4.80% 3.30% 1.63% (1.22%) 4.88% 0.89% 4.54% 1.60% 1.71% 34.73% (8.38%) 2.11% 2010 (1.73%) 2.89% 3.75% 0.74% (4.42%) 2.42% 3.20% (2.88%) 7.65% 3.77% 1.01% (0.49%) 16.42% 10.45% 15.06%
The performance figures above represent the Fund’s performance net of the Fund’s annual management fee and expenses. Please consult the Fund’s legal documents for more information. PAST PERFORMANCE SHOULD NOT BE CONSIDERED INDICATIVE OF FUTURE RESULTS.
144 September 30, 2019
RIEF LP ONSHORE
Since Since 1 Mo 3 Mo 1 Year 2 Year 3 Year 5 Year Incep. 2013 2014 2015 2016 2017 2018 2019 Incep. Ann'lzed Fund 2.49% 5.39% 9.61% 12.22% 14.33% 17.21% 364.08% 11.44% 17.78% 14.68% 17.52% 21.63% 15.36% 8.58% 10.92% Benchmark 1 0.39% (1.10%) (1.12%) 1.84% 4.80% 3.49% 78.86% 4.19% 14.28% 1.81% (0.96%) 5.47% 13.29% (7.13%) 8.05% Benchmark 2 1.87% 1.70% 4.25% 10.87% 13.39% 10.84% 224.55% 8.67% 32.39% 13.69% 1.38% 11.96% 21.83% (4.38%) 20.55%
DISTRIBUTION OF RETURNS MONTHLY RETURNS LAST 5 YEARS
45% 10%
40% 8%
35% 6%
30% 4% 25% 2% 20% 0% 15%
-2% 10%
5% -4%
0% -6% 6.7% 3.8% 9.6% 0.9% 21.1% -1.9% 12.5% -7.7% 18.2% 15.4% -4.8% Jul-15 Jul-17 Jul-16 Jul-19 Jul-18 -13.5% -22.1% 24.0% -16.3% -19.2% -10.6% Jan-15 Jan-17 Apr-15 Oct-15 Jan-16 Jan-19 Apr-17 Oct-17 Apr-16 Jan-18 Apr-19 Oct-16 Apr-18 Oct-18 Oct-14
RIEF LP Onshore Norm Distribution RIEF LP Onshore
RISK/RETURN 5 WORST S&P 500 MONTHS 14.0% 0%
-2% 12.0%
RIEF LP Onshore -4% 10.0% -6% S&P 500 TR (1989) 8.0% -8%
6.0% -10% HFRI Equity Hedge Compound ROR Compound (Total) Index -12% 4.0% -14% 2.0% -16%
0.0% -18% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Oct-08 Feb-09 Dec-18 Sep-08 Jun-08
Standard Deviation RIEF LP Onshore HFRI Equity Hedge (Total) Index S&P 500 TR (1989)
RISK ANALYSIS DRAWDOWNS & RUN UPS Fund BM1 BM2 30% Annualized Return 11.44% 4.19% 8.67% Standard Deviation 9.98% 8.10% 14.07% 20% Sharpe (3.00%) 0.85 0.15 0.40 Sortino Ratio (3.00%) 1.38 0.20 0.56 10% Down Dev. (0.00%) 5.72% 5.72% 9.66% Maximum Drawdown (34.58%) (30.59%) (50.95%) 0% # Positive Monthly Returns 113 110 117 -- as a % of Total Returns 66.47% 64.71% 68.82% -10% Avg. Positive Monthly Return 2.54% 1.68% 2.85% -20% # Negative Monthly Returns 57 60 53 -- as a % of Total Returns 33.53% 35.29% 31.18% -30% Avg. Negative Monthly Return (2.20%) (2.03%) (3.80%) Annual Volatility - 1 Year 7.32% 9.97% 18.75% 8.00% -40% Annual Volatility - 3 Year 6.37% 12.18% Aug-05 Nov-06 Feb-08 May-09 Aug-10 Nov-11 Feb-13 May-14 Aug-15 Nov-16 Feb-18 May-19
Annual Volatility - 5 Year 9.40% 6.41% 11.93% Drawdowns Run Ups
The performance figures above represent the Fund’s performance net of the Fund’s annual management fee and expenses. Please consult the Fund’s legal documents for more information. PAST PERFORMANCE SHOULD NOT BE CONSIDERED INDICATIVE OF FUTURE RESULTS.
145 APPENDIX
146 Summary Statistics - Common Time Period Time Period: Since Common Inception (1/1/2006) to 9/30/2019 Calculation Benchmark: S&P 500 TR USD Loss Annualized Sharpe Max Gain/Loss Std Dev Std Beta Return Ratio Drawdown Ratio Dev
Ironwood Intl. Ltd. 3.84 5.47 0.47 7.22 -30.19 0.22 1.87
Canyon Balanced Fund 9.36 9.41 0.85 8.61 -30.30 0.44 2.34
RenTec RIEF 10.08 10.72 0.82 6.48 -37.92 0.32 1.99
40% Ironwood 30% RIEF 30% Canyon 7.80 6.15 1.06 6.50 -27.74 0.32 2.70
50% Ironwood 25% RIEF 25% Canyon 7.14 5.90 0.99 6.64 -27.85 0.30 2.63
BBgBarc US Agg Bond TR USD 4.34 3.20 0.96 1.92 -3.83 0.00 2.83
HFRI FoF Diversified 2.36 4.82 0.23 4.31 -21.75 0.24 1.48
S&P 500 TR USD 8.78 14.23 0.52 11.42 -50.95 1.00 1.66
HFRI FoF Conservative 2.14 3.92 0.23 4.30 -20.37 0.18 1.58
147 Source: Morningstar Direct Correlation Matrix Time Period: Since Common Inception (1/1/2006) to 9/30/2019
1 2 3 4 5 6 7 8 9
1 Ironwood Intl. Ltd. 1.00
2 Canyon Balanced Fund 0.75 1.00
3 RenTec RIEF 0.22 0.09 1.00
4 40% Ironwood 30% RIEF 30% Canyon 0.82 0.79 0.64 1.00
5 50% Ironwood 25% RIEF 25% Canyon 0.87 0.80 0.59 1.00 1.00
6 BBgBarc US Agg Bond TR USD -0.10 0.03 0.13 0.05 0.03 1.00
7 HFRI FoF Diversified 0.86 0.79 0.26 0.81 0.84 -0.03 1.00
8 S&P 500 TR USD 0.56 0.67 0.43 0.73 0.73 0.00 0.70 1.00
9 HFRI FoF Conservative 0.94 0.81 0.23 0.83 0.86 -0.07 0.96 0.65 1.00
148 Source: Morningstar Direct Trailing Annualized Returns As of Date: 9/30/2019 1 Year 3 Years 5 Years 7 Years 10 Years Ironwood Intl. Ltd. 2.11 4.99 3.59 5.62 5.82 Canyon Balanced Fund 1.45 7.65 4.09 7.12 8.38 RenTec RIEF 8.92 13.51 16.54 13.99 15.87 40% Ironwood 30% RIEF 30% Canyon 4.00 8.40 7.66 8.68 9.82 50% Ironwood 25% RIEF 25% Canyon 3.68 7.83 6.98 8.17 9.16 BBgBarc US Agg Bond TR USD 10.30 2.92 3.38 2.72 3.75 HFRI FoF Diversified 0.49 3.25 1.98 3.21 2.76 S&P 500 TR USD 4.25 13.39 10.84 13.26 13.24 HFRI FoF Conservative 1.19 3.13 2.04 3.19 2.73
Calendar Year Returns 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Ironwood Intl. Ltd. 0.90 7.07 2.34 1.77 7.17 11.60 10.48 1.24 9.02 16.37 -30.15
Canyon Balanced Fund -2.61 15.20 8.96 -8.39 6.09 20.19 20.52 -4.55 15.12 75.70 -28.39
RenTec RIEF 7.13 14.31 21.17 16.62 13.59 16.89 7.61 34.50 13.60 -7.52 -18.41
40% Ironwood 30% RIEF 30% Canyon 1.71 11.68 9.97 3.18 8.77 15.76 12.63 9.48 12.23 27.00 -26.10
50% Ironwood 25% RIEF 25% Canyon 1.58 10.92 8.70 2.94 8.51 15.07 12.27 8.11 11.69 25.23 -26.78
BBgBarc US Agg Bond TR USD 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54 5.93 5.24
HFRI FoF Diversified -3.29 6.87 0.44 -0.18 3.42 9.04 4.80 -5.01 5.47 11.45 -20.84
S&P 500 TR USD -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 -37.00
HFRI FoF Conservative -0.88 4.12 1.88 0.36 3.13 7.70 4.23 -3.57 5.08 9.65 -19.87 149 Source: Morningstar Direct Three Year Risk-Reward Five Year Risk-Reward Time Period: 10/1/2016 to 9/30/2019 Time Period: 10/1/2014 to 9/30/2019 18.0 Ironwood Intl. Ltd. 21.0 Ironwood Intl. Ltd. Canyon Balanced Fund Canyon Balanced Fund 18.0 15.0 RenTec RIEF RenTec RIEF 40% Ironwood 30% RIEF 30% Canyon 40% Ironwood 30% RIEF 30% Canyon 15.0 12.0 50% Ironwood 25% RIEF 25% Canyon 50% Ironwood 25% RIEF 25% Canyon BBgBarc US Agg Bond TR USD BBgBarc US Agg Bond TR USD 12.0 9.0 HFRI FoF Diversified HFRI FoF Diversified S&P 500 TR USD 9.0 S&P 500 TR USD
6.0 HFRI FoF Conservative HFRI FoF Conservative 6.0
3.0 3.0
0.0 0.0 Return Return 0.0 3.0 6.0 9.0 12.0 15.0 0.0 3.0 6.0 9.0 12.0 15.0
Std Dev Std Dev
Three Year Risk Five Year Risk Time Period: 10/1/2016 to 9/30/2019 Time Period: 10/1/2014 to 9/30/2019 Loss Loss Sharpe Sharpe Return Std Dev Std Beta Alpha R2 Return Std Dev Std Beta Alpha R2 Ratio Ratio Dev Dev Ironwood Intl. Ltd. 4.99 2.24 1.45 0.12 1.90 39.96 1.48 Ironwood Intl. Ltd. 3.59 2.67 1.83 0.12 1.38 27.44 0.95
Canyon Balanced Fund 7.65 5.78 4.96 0.42 0.98 78.23 1.03 Canyon Balanced Fund 4.09 6.29 5.15 0.41 -0.92 60.91 0.48
RenTec RIEF 13.51 8.69 3.23 0.36 7.31 24.83 1.35 RenTec RIEF 16.54 10.26 3.74 0.24 12.53 7.46 1.50
40% Ironwood 30% RIEF 30% Canyon 8.40 4.15 2.89 0.28 3.26 66.78 1.61 40% Ironwood 30% RIEF 30% Canyon 7.66 3.88 2.56 0.24 4.03 54.68 1.69
50% Ironwood 25% RIEF 25% Canyon 7.83 3.73 2.71 0.25 3.03 67.67 1.64 50% Ironwood 25% RIEF 25% Canyon 6.98 3.45 2.38 0.22 3.59 58.01 1.71
BBgBarc US Agg Bond TR USD 2.92 3.35 2.13 -0.04 1.82 2.38 0.38 BBgBarc US Agg Bond TR USD 3.38 3.08 1.86 -0.04 2.75 2.34 0.76
HFRI FoF Diversified 3.25 3.52 2.64 0.24 -1.19 69.09 0.46 HFRI FoF Diversified 1.98 3.50 2.48 0.23 -1.29 60.65 0.27
S&P 500 TR USD 13.39 12.18 9.95 1.00 0.00 100.00 0.95 S&P 500 TR USD 10.84 11.93 8.88 1.00 0.00 100.00 0.81
HFRI FoF Conservative 3.13 2.16 1.71 0.14 -0.11 58.04 0.69 HFRI FoF Conservative 2.04 2.31 1.58 0.13 -0.31 47.75 0.44 150 Source: Morningstar Direct Seven Year Risk-Reward Ten Year Risk-Reward Time Period: 10/1/2012 to 9/30/2019 Time Period: 10/1/2009 to 9/30/2019 18.0 Ironwood Intl. Ltd. 21.0 Ironwood Intl. Ltd. Canyon Balanced Fund Canyon Balanced Fund 18.0 15.0 RenTec RIEF RenTec RIEF 40% Ironwood 30% RIEF 30% Canyon 40% Ironwood 30% RIEF 30% Canyon 15.0 12.0 50% Ironwood 25% RIEF 25% Canyon 50% Ironwood 25% RIEF 25% Canyon BBgBarc US Agg Bond TR USD BBgBarc US Agg Bond TR USD 12.0 9.0 HFRI FoF Diversified HFRI FoF Diversified S&P 500 TR USD 9.0 S&P 500 TR USD
6.0 HFRI FoF Conservative HFRI FoF Conservative 6.0
3.0 3.0
0.0 0.0 Return Return 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0.0 3.0 6.0 9.0 12.0 15.0
Std Dev Std Dev
Seven Year Risk Ten Year Risk Time Period: 10/1/2012 to 9/30/2019 Time Period: 10/1/2009 to 9/30/2019 Loss Loss Sharpe Sharpe Return Std Dev Std Beta Alpha R2 Return Std Dev Std Beta Alpha R2 Ratio Ratio Dev Dev Ironwood Intl. Ltd. 5.62 2.64 1.78 0.12 3.28 25.07 1.84 Ironwood Intl. Ltd. 5.82 2.82 1.98 0.13 3.47 33.99 1.86
Canyon Balanced Fund 7.12 6.04 4.91 0.40 1.33 55.08 1.05 Canyon Balanced Fund 8.38 6.43 5.30 0.36 3.11 49.87 1.21
RenTec RIEF 13.99 10.67 4.96 0.32 8.98 11.28 1.23 RenTec RIEF 15.87 10.19 4.88 0.31 10.81 14.71 1.50
40% Ironwood 30% RIEF 30% Canyon 8.68 4.02 2.47 0.27 4.37 54.03 1.96 40% Ironwood 30% RIEF 30% Canyon 9.82 4.17 2.46 0.25 5.70 57.72 2.21
50% Ironwood 25% RIEF 25% Canyon 8.17 3.56 2.23 0.24 4.18 56.74 2.07 50% Ironwood 25% RIEF 25% Canyon 9.16 3.77 2.27 0.23 5.33 59.96 2.27
BBgBarc US Agg Bond TR USD 2.72 3.02 1.87 -0.03 2.32 0.98 0.65 BBgBarc US Agg Bond TR USD 3.75 2.95 1.85 -0.05 3.77 3.86 1.08
HFRI FoF Diversified 3.21 3.40 2.27 0.24 -0.52 61.71 0.72 HFRI FoF Diversified 2.76 3.57 2.49 0.23 -0.64 62.84 0.61
S&P 500 TR USD 13.26 11.10 7.93 1.00 0.00 100.00 1.12 S&P 500 TR USD 13.24 12.55 8.25 1.00 0.00 100.00 1.01
HFRI FoF Conservative 3.19 2.24 1.51 0.14 0.67 48.06 1.08 HFRI FoF Conservative 2.73 2.55 1.97 0.15 0.25 54.98 0.85 151 Source: Morningstar Direct Risk Measures - Last Three Years Time Period: 10/1/2016 to 9/30/2019 # of # of Up Down Up Down Average Average Best Worst Up Down Capture Capture Capture Capture R2 Gain Loss Quarter Quarter Months Months Return Return Ratio Ratio Ironwood Intl. Ltd. 28 8 0.68 -0.53 0.56 -0.23 2.85 -2.94 22.79 5.04 39.96 Canyon Balanced Fund 27 9 1.31 -1.44 1.20 -1.75 7.25 -6.72 48.51 38.11 78.23 RenTec RIEF 25 11 2.49 -2.12 1.48 -0.67 8.78 -1.81 60.26 14.70 24.83 40% Ironwood 30% RIEF 30% Canyon 28 8 1.18 -1.08 1.04 -0.81 4.64 -3.71 42.06 17.71 66.78 50% Ironwood 25% RIEF 25% Canyon 28 8 1.08 -0.92 0.96 -0.72 4.30 -3.59 38.89 15.61 67.67 BBgBarc US Agg Bond TR USD 22 14 0.80 -0.64 0.15 0.61 3.08 -2.98 6.14 -13.32 2.38 HFRI FoF Diversified 24 12 0.81 -0.80 0.60 -1.12 4.32 -4.60 24.52 24.33 69.09 S&P 500 TR USD 29 7 2.46 -4.59 2.46 -4.59 13.65 -13.52 100.00 100.00 100.00 HFRI FoF Conservative 27 9 0.53 -0.55 0.44 -0.48 3.14 -3.25 17.70 10.44 58.04
Summary Statistics - Last Three Years Time Period: 10/1/2016 to 9/30/2019 Loss Sharpe Max Excess Tracking Batting Information Return Std Dev Std Alpha Ratio Drawdown Return Error Average Ratio Dev Ironwood Intl. Ltd. 4.99 2.24 1.48 1.45 -2.94 -8.40 10.90 30.56 -0.68 1.90 Canyon Balanced Fund 7.65 5.78 1.03 4.96 -6.72 -5.75 7.56 36.11 -0.67 0.98 RenTec RIEF 13.51 8.69 1.35 3.23 -3.98 0.11 10.91 52.78 0.01 7.31 40% Ironwood 30% RIEF 30% Canyon 8.40 4.15 1.61 2.89 -3.71 -5.00 9.10 38.89 -0.48 3.26 50% Ironwood 25% RIEF 25% Canyon 7.83 3.73 1.64 2.71 -3.59 -5.56 9.35 38.89 -0.52 3.03 BBgBarc US Agg Bond TR USD 2.92 3.35 0.38 2.13 -3.11 -10.47 13.12 22.22 -0.70 1.82 HFRI FoF Diversified 3.25 3.52 0.46 2.64 -5.55 -10.14 9.46 25.00 -0.95 -1.19 S&P 500 TR USD 13.39 12.18 0.95 9.95 -13.52 0.00 0.00 100.00 — 0.00 HFRI FoF Conservative 3.13 2.16 0.69 1.71 -3.25 -10.26 10.62 27.78 -0.85 -0.11 152 Source: Morningstar Direct Risk Measures - Last Five Years Time Period: 10/1/2014 to 9/30/2019 # of # of Up Down Up Down Average Average Best Worst Up Down Capture Capture Capture Capture R2 Gain Loss Quarter Quarter Months Months Return Return Ratio Ratio Ironwood Intl. Ltd. 41 19 0.71 -0.60 0.51 -0.30 2.89 -3.26 20.90 8.96 27.44 Canyon Balanced Fund 40 20 1.31 -1.60 1.10 -1.75 7.25 -8.18 44.92 51.45 60.91 RenTec RIEF 40 20 2.97 -2.01 1.39 1.01 15.33 -5.79 56.42 -29.61 7.46 40% Ironwood 30% RIEF 30% Canyon 46 14 1.10 -0.95 0.96 -0.32 4.64 -3.71 39.05 9.30 54.68 50% Ironwood 25% RIEF 25% Canyon 46 14 0.98 -0.80 0.89 -0.31 4.30 -3.59 36.06 9.23 58.01 BBgBarc US Agg Bond TR USD 37 23 0.79 -0.54 0.19 0.51 3.08 -2.98 7.90 -14.91 2.34 HFRI FoF Diversified 39 21 0.74 -0.90 0.57 -0.94 4.32 -4.60 23.16 27.78 60.65 S&P 500 TR USD 44 16 2.45 -3.40 2.45 -3.40 13.65 -13.52 100.00 100.00 100.00 HFRI FoF Conservative 42 18 0.52 -0.65 0.41 -0.49 3.14 -3.25 16.62 14.32 47.75
Summary Statistics - Last Five Years Time Period: 10/1/2014 to 9/30/2019 Loss Sharpe Max Excess Tracking Batting Information Return Std Dev Std Alpha Ratio Drawdown Return Error Average Ratio Dev Ironwood Intl. Ltd. 3.59 2.67 0.95 1.83 -5.15 -7.25 10.77 36.67 -0.61 1.38 Canyon Balanced Fund 4.09 6.29 0.48 5.15 -16.65 -6.74 8.05 40.00 -0.76 -0.92 RenTec RIEF 16.54 10.26 1.50 3.74 -6.06 5.70 13.46 53.33 0.38 12.53 40% Ironwood 30% RIEF 30% Canyon 7.66 3.88 1.69 2.56 -3.71 -3.17 9.41 41.67 -0.30 4.03 50% Ironwood 25% RIEF 25% Canyon 6.98 3.45 1.71 2.38 -3.59 -3.85 9.55 40.00 -0.36 3.59 BBgBarc US Agg Bond TR USD 3.38 3.08 0.76 1.86 -3.28 -7.46 12.76 30.00 -0.53 2.75 HFRI FoF Diversified 1.98 3.50 0.27 2.48 -6.53 -8.86 9.46 35.00 -0.85 -1.29 S&P 500 TR USD 10.84 11.93 0.81 8.88 -13.52 0.00 0.00 100.00 — 0.00 HFRI FoF Conservative 2.04 2.31 0.44 1.58 -4.55 -8.79 10.47 35.00 -0.76 -0.31 153 Source: Morningstar Direct Risk Measures - Last Ten Years Time Period: 10/1/2009 to 9/30/2019 # of # of Up Down Up Down Average Average Best Worst Up Down Capture Capture Capture Capture R2 Gain Loss Quarter Quarter Months Months Return Return Ratio Ratio Ironwood Intl. Ltd. 90 30 0.85 -0.64 0.73 -0.16 3.97 -3.41 25.54 4.89 33.99 Canyon Balanced Fund 88 32 1.54 -1.68 1.43 -1.14 8.72 -9.14 49.76 34.89 49.87 RenTec RIEF 80 40 2.90 -2.02 1.67 0.20 15.33 -5.79 57.96 -6.06 14.71 40% Ironwood 30% RIEF 30% Canyon 93 27 1.27 -0.88 1.23 -0.30 7.12 -3.71 42.95 9.24 57.72 50% Ironwood 25% RIEF 25% Canyon 94 26 1.16 -0.79 1.15 -0.28 6.43 -3.59 40.10 8.50 59.96 BBgBarc US Agg Bond TR USD 79 41 0.77 -0.57 0.21 0.55 3.82 -2.98 7.26 -16.72 3.86 HFRI FoF Diversified 76 44 0.85 -0.85 0.68 -0.87 4.32 -4.60 23.81 26.73 62.84 S&P 500 TR USD 85 35 2.87 -3.27 2.87 -3.27 13.65 -13.87 100.00 100.00 100.00 HFRI FoF Conservative 85 35 0.60 -0.69 0.52 -0.49 3.14 -3.92 18.14 15.03 54.98
Summary Statistics - Last Ten Years Time Period: 10/1/2009 to 9/30/2019 Loss Sharpe Max Excess Tracking Batting Information Return Std Dev Std Alpha Ratio Drawdown Return Error Average Ratio Dev Ironwood Intl. Ltd. 5.82 2.82 1.86 1.98 -5.15 -7.42 11.14 36.67 -0.59 3.47 Canyon Balanced Fund 8.38 6.43 1.21 5.30 -16.65 -4.86 9.21 44.17 -0.47 3.11 RenTec RIEF 15.87 10.19 1.50 4.88 -7.82 2.63 12.78 50.00 0.18 10.81 40% Ironwood 30% RIEF 30% Canyon 9.82 4.17 2.21 2.46 -3.71 -3.42 9.75 42.50 -0.31 5.70 50% Ironwood 25% RIEF 25% Canyon 9.16 3.77 2.27 2.27 -3.59 -4.08 9.91 40.83 -0.36 5.33 BBgBarc US Agg Bond TR USD 3.75 2.95 1.08 1.85 -3.67 -9.49 13.44 32.50 -0.62 3.77 HFRI FoF Diversified 2.76 3.57 0.61 2.49 -7.06 -10.48 9.95 33.33 -0.93 -0.64 S&P 500 TR USD 13.24 12.55 1.01 8.25 -16.26 0.00 0.00 100.00 — 0.00 HFRI FoF Conservative 2.73 2.55 0.85 1.97 -5.40 -10.51 10.79 34.17 -0.86 0.25 154 Source: Morningstar Direct Risk Measures - Common Time Period Time Period: Since Common Inception (1/1/2006) to 9/30/2019 # of # of Up Down Up Down Average Average Best Worst Up Down Capture Capture Capture Capture R2 Gain Loss Quarter Quarter Months Months Return Return Ratio Ratio Ironwood Intl. Ltd. 121 44 0.96 -1.44 0.75 -0.66 5.84 -19.29 26.34 16.68 31.78 Canyon Balanced Fund 117 47 1.92 -2.09 1.75 -1.46 31.31 -15.94 61.24 36.94 44.71 RenTec RIEF 105 60 2.67 -2.39 1.49 -0.70 15.33 -8.99 51.91 17.82 18.55 40% Ironwood 30% RIEF 30% Canyon 122 43 1.38 -1.47 1.31 -0.88 10.53 -14.64 45.68 22.12 54.20 50% Ironwood 25% RIEF 25% Canyon 123 42 1.28 -1.45 1.22 -0.84 9.64 -15.42 42.50 21.19 52.87 BBgBarc US Agg Bond TR USD 109 56 0.84 -0.58 0.31 0.46 4.58 -2.98 10.79 -11.57 0.00 HFRI FoF Diversified 106 59 0.98 -1.21 0.76 -1.06 5.28 -10.23 26.64 26.86 49.70 S&P 500 TR USD 114 51 2.86 -3.96 2.86 -3.96 15.93 -21.94 100.00 100.00 100.00 HFRI FoF Conservative 114 50 0.72 -1.05 0.58 -0.71 3.94 -11.47 20.11 17.96 43.19
Summary Statistics - Common Time Period Time Period: Since Common Inception (1/1/2006) to 9/30/2019 Loss Sharpe Max Excess Tracking Batting Information Return Std Dev Std Alpha Ratio Drawdown Return Error Average Ratio Dev Ironwood Intl. Ltd. 3.84 5.47 0.47 7.22 -30.19 -4.94 12.06 39.39 -0.38 0.93 Canyon Balanced Fund 9.36 9.41 0.85 8.61 -30.30 0.57 10.61 47.88 0.05 4.55 RenTec RIEF 10.08 10.72 0.82 6.48 -37.92 1.29 13.67 49.70 0.09 6.31 40% Ironwood 30% RIEF 30% Canyon 7.80 6.15 1.06 6.50 -27.74 -0.99 10.57 46.06 -0.09 3.87 50% Ironwood 25% RIEF 25% Canyon 7.14 5.90 0.99 6.64 -27.85 -1.64 10.75 43.64 -0.14 3.38 BBgBarc US Agg Bond TR USD 4.34 3.20 0.96 1.92 -3.83 -4.44 14.60 36.36 -0.28 3.08 HFRI FoF Diversified 2.36 4.82 0.23 4.31 -21.75 -6.42 11.40 38.18 -0.52 -0.72 S&P 500 TR USD 8.78 14.23 0.52 11.42 -50.95 0.00 0.00 100.00 — 0.00 HFRI FoF Conservative 2.14 3.92 0.23 4.30 -20.37 -6.65 12.07 36.36 -0.51 -0.50 155 Source: Morningstar Direct Monthly Capital Markets Review - October 2019 ACG Atlanta Consulting Group
Market Highlights Index Returns (%)
25 • During October, equity markets globally continued 20 their year-to-date gains 15 MTD 10 YTD • International markets, particularly emerging markets, 23.16 23.21 17.18 5 16.86 5 Years 2.17 1.05 2.63 3.59 4.22 0.3 0.67 10.78 10.36 8.85 outperformed relative to the US 8.67 7.37 4.31 2.93 3.24 7.03 2.13 0 • Within equities, emerging markets are the worst S&P 500 Russell MidCap Russell 2000 MSCI EAFE MSCI Emerging BBgBarc US BBgBarc Global Markets Aggregate TR Aggregate TR performing year-to-date, but strong October pushed year-to-date returns into double digit territory Equity Returns (%) MTD YTD 1 Yr 3 Yr 5 Yr S&P Sector Returns (%) • Developed international markets continued the S&P 500 2.17 23.16 14.33 14.91 10.78 MTD YTD positive trajectory during October extending year-to-date Russell 1000 2.12 23.09 14.15 14.73 10.55 Consumer Discretionary returns to 16.86% for the MSCI EAFE index Russell MidCap 1.05 23.21 13.72 12.28 8.67 Consumer Staples Russell 2000 2.63 17.18 4.90 10.96 7.37 Energy • In the US, small cap equities outperformed large cap Russell 3000 2.15 22.68 13.49 14.47 10.31 and growth outperformed value NASDAQ Composite TR 3.71 26.06 14.77 18.20 13.64 Financials Health Care • Energy continued its downward slide as a negative Fixed Income Returns (%) MTD YTD 1 Yr 3 Yr 5 Yr outlier for the US sectors although it is still positive year- Industrials BBgBarc US Aggregate TR 0.30 8.85 11.51 3.29 3.24 to-date while information technology continues to be the Information Technology BBgBarc Global Aggregate TR 0.67 7.03 9.54 2.77 2.13 best performing sector year-to-date with returns nearing Materials 40% BBgBarc US Credit TR 0.57 13.25 14.88 4.83 4.43 BBgBarc US Govt TR 0.07 7.74 10.99 2.66 2.72 Real Estate • US fixed income markets continued on their positive BBgBarc US High Yield TR 0.28 11.71 8.38 6.03 5.18 Communication Services path buoyed by a much-anticipated rate cut in the US on BBgBarc US Municipal TR 0.18 6.94 9.42 3.62 3.55 Utilities October 31, marking the third cut by the FOMC this year FTSE WGBI 0.54 6.84 9.92 2.55 1.96 ‐20 0 20 40 • Global fixed income was also positive during the International Equity Returns (%) MTD YTD 1 Yr 3 Yr 5 Yr Russell Style Returns (%) - MTD month MSCI ACWI ex USA 3.49 15.45 11.27 8.07 3.82 Value Core Growth MSCI EAFE 3.59 16.86 11.04 8.48 4.31 Large 1.40 2.12 2.82 • Within alternatives, only the Alerian MLP Index was MSCI Emerging Markets 4.22 10.36 11.86 7.36 2.93 Mid 0.54 1.05 1.85 negative in October Small 2.42 2.63 2.85 Other Index Returns (%) MTD YTD 1 Yr 3 Yr 5 Yr HFRI Fund of Funds Composite Index 0.45 5.76 3.56 3.43 2.18 Russell Style Returns (%) - YTD Wilshire Liquid Alternative TR USD 0.29 5.34 3.57 2.05 0.87 Value Core Growth Sources: Morningstar Direct FTSE EPRA/NAREIT Developed NR USD 2.50 22.81 20.29 8.58 5.97 Large 19.46 23.09 26.77 Alerian MLP TR USD -6.22 4.18 -6.36 -3.06 -8.96 Mid 20.11 23.21 27.55 Bloomberg Commodity Index TR USD 2.02 5.21 -2.59 -0.68 -6.65 Small 15.55 17.18 18.62
Prepared by The Atlanta Consulting Group 156 Market Index Review - October 2019 ACG Atlanta Consulting Group
Major Market Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years International Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years S&P 500 2.17 2.17 23.16 14.33 14.91 10.78 13.70 MSCI EAFE 3.59 3.59 16.86 11.04 8.48 4.31 5.41 Russell 2000 2.63 2.63 17.18 4.90 10.96 7.37 12.27 MSCI Europe 3.21 3.21 17.37 10.90 8.89 3.58 5.07 Russell 3000 2.15 2.15 22.68 13.49 14.47 10.31 13.62 MSCI Pacific 4.24 4.24 16.16 11.52 7.97 5.80 6.21 MSCI ACWI 2.74 2.74 19.38 12.59 11.33 7.08 8.81 MSCI EAFE Small Cap 4.54 4.54 17.15 8.82 8.55 7.39 8.12 MSCI ACWI ex USA 3.49 3.49 15.45 11.27 8.07 3.82 4.94 MSCI Emerging Markets 4.22 4.22 10.36 11.86 7.36 2.93 3.78 BBgBarc US Aggregate TR 0.30 0.30 8.85 11.51 3.29 3.24 3.73 MSCI Frontier Markets 0.81 0.81 11.56 10.64 7.45 -0.22 4.00
Russell Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Bond Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Russell 1000 2.12 2.12 23.09 14.15 14.73 10.55 13.72 FTSE T-Bill 3 Months 0.17 0.17 1.96 2.35 1.57 0.99 0.53 Russell 1000 Growth 2.82 2.82 26.77 17.10 18.92 13.43 15.41 BBgBarc US Municipal TR 0.18 0.18 6.94 9.42 3.62 3.55 4.40 Russell 1000 Value 1.40 1.40 19.46 11.21 10.51 7.61 11.96 BBgBarc US Govt/Credit TR 0.28 0.28 10.03 12.61 3.59 3.46 3.94 Russell MidCap 1.05 1.05 23.21 13.72 12.28 8.67 13.70 BBgBarc US Govt/Credit Int TR 0.40 0.40 6.83 8.74 2.67 2.61 3.04 Russell MidCap Growth 1.85 1.85 27.55 18.93 16.80 10.92 14.76 BBgBarc US Credit 1-3 Yr TR 0.39 0.39 4.61 5.51 2.53 2.13 2.36 Russell MidCap Value 0.54 0.54 20.11 10.08 8.90 6.95 12.90 BBgBarc US Credit Long TR 0.55 0.55 22.59 25.09 7.40 6.61 7.86 Russell 2000 Growth 2.85 2.85 18.62 6.40 13.22 8.38 13.38 BBgBarc US Corporate High Yield TR 0.28 0.28 11.71 8.38 6.03 5.18 7.78 Russell 2000 Value 2.42 2.42 15.55 3.22 8.60 6.24 11.08 FTSE WGBI 0.54 0.54 6.84 9.92 2.55 1.96 1.73
Sector Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years Other Indices MTD QTD YTD 1 Year 3 Years 5 Years 10 Years S&P 500 Materials 0.04 0.04 17.16 13.50 9.81 5.92 9.83 HFRI FOF: Diversified Index 0.20 0.20 5.60 3.43 3.47 2.15 2.79 S&P 500 Consumer Discretionary 0.34 0.34 22.88 15.76 16.87 13.62 18.01 HFRI FOF: Conservative Index 0.85 0.85 5.45 3.61 3.33 2.40 2.79 S&P 500 Consumer Staples -0.15 -0.15 23.10 14.05 8.12 8.46 12.13 HFRI FOF: Strategic Index 0.93 0.93 6.87 4.19 3.73 2.26 2.94 S&P 500 Energy -2.29 -2.29 3.57 -11.04 -2.47 -4.95 2.76 HFRI Equity Hedge Index 1.31 1.31 9.25 4.85 5.47 3.73 4.64 S&P 500 Financials 2.41 2.41 22.49 11.72 15.50 10.39 11.72 Wilshire Liquid Alternative TR USD 0.29 0.29 5.34 3.57 2.05 0.87 1.94 S&P 500 Health Care 5.12 5.12 11.04 8.63 14.02 9.41 15.31 FTSE EPRA/NAREIT Global TR USD 2.79 2.79 22.71 21.69 9.90 6.96 9.42 S&P 500 Industrials 1.08 1.08 23.91 14.91 12.47 9.17 14.09 Alerian MLP TR USD -6.22 -6.22 4.18 -6.36 -3.06 -8.96 5.27 S&P 500 Information Technology 3.89 3.89 36.48 22.59 24.14 18.71 17.60 Bloomberg Commodity Index TR USD 2.02 2.02 5.21 -2.59 -0.68 -6.65 -4.44 S&P 500 Real Estate -0.11 -0.11 29.57 26.73 12.41 -- -- S&P 500 Communication Services 3.02 3.02 25.42 15.52 6.66 5.61 10.22 S&P 500 Utilities -0.76 -0.76 24.44 23.71 12.97 10.98 12.77
Returns include dividends; 3-year, 5-year, and 10-year returns are annualized. Indices are unmanaged. You cannot invest directly into an index. Past performance is not indicative of future results.
Prepared by The Atlanta Consulting Group 157 University of West Florida Foundation As of October 31, 2019 Current Current Within IPS Policy Policy Range Difference Balance Allocation Range?
_ US Stock Large $22,278,443 23.53% 22.50% 20.00% - 30.00% 1.03% Yes Eagle Capital Management $10,965,423 11.58% Vanguard 500 Index Admiral $11,313,020 11.95% US Stock Small $9,925,231 10.48% 10.00% 7.50% - 15.00% 0.48% Yes Conestoga Small Cap Investors $4,995,002 5.28% Fuller & Thaler Behav Sm-Cp Eq Inst $4,930,230 5.21% International $13,678,215 14.45% 15.00% 10.00% - 20.00% -0.55% Yes Dodge & Cox International Stock $6,573,652 6.94% WCM Focused International Growth Instl $7,104,563 7.50% International Small Stocks $6,202,368 6.55% 7.50% 2.50% - 10.00% -0.95% Yes T. Rowe Price International Discovery $6,202,368 6.55% International Emerging Stocks $5,516,601 5.83% 5.00% 2.50% - 7.50% 0.83% Yes DFA Emerging Markets Core Equity I $5,516,601 5.83% Fixed $11,420,180 12.06% 15.00% 10.00% - 25.00% -2.94% Yes Barrow Hanley $5,818,769 6.15% Templeton Global Bond Fund $2,677,992 2.83% Chartwell Short Duration High Yield $2,923,419 3.09% MLP $4,136,741 4.37% 0.00% 0.00% - 10.00% 4.37% Yes Tortoise MLP & Pipeline Instl $4,136,741 4.37% Fund of Funds $9,047,431 9.55% 5.00% 0.00% - 10.00% 4.55% Yes Ironwood International Ltd. $9,047,431 9.55% Real Estate $3,274,674 3.46% 7.50% 0.00% - 15.00% -4.04% Yes Harbert US RE Fund V LP $1,013,846 1.07% Harbert US RE Fund VI LP $2,215,436 2.34% Harbert US RE Fund IV LP $45,391 0.05% Private Equity $3,919,134 4.14% 7.50% 0.00% - 10.00% -3.36% Yes Portfolio Advisors PE Offshore V $269,579 0.28% Portfolio Advisors PE VII $747,384 0.79% Portfolio Advisors PE Offshore X $1,118,117 1.18% Portfolio Advisors Secondary Fund III, L.P. $1,193,806 1.26% StepStone Pioneer Capital III, L.P. $590,248 0.62% Private Debt $1,047,663 1.11% 5.00% 0.00% - 10.00% -3.89% Yes Portfolio Advisors Direct Credit II $647,663 0.68% Golub Capital Partners Intl 12 LP $400,000 0.42% Cash/Short Term Fixed Income $4,241,401 4.48% 0.00% 0.00% - 10.00% 4.48% Yes PIMCO Short-Term Instl $4,204,460 4.44% Cash $36,940 0.04% Total $94,688,082 100.00% 100.00%
Prepared by The Atlanta Consulting Group 158 University of West Florida Foundation As of October 31, 2019 Fiscal Year End: June Fiscal Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status YTD ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date (%)
_ Foundation 94,688,082 100.00 1.51 1.51 0.98 13.90 9.20 4.86 8.58 5.65 7.66 5.09 Mar-99 Balanced Index 1.67 1.67 1.48 13.48 8.99 4.40 7.92 5.19 7.31 4.94 Mar-99 CPI+4% 0.33 0.33 1.56 5.59 5.59 6.10 6.11 5.64 5.80 6.25 Mar-99 US Stock Large 22,278,443 23.53 3.07 3.07 3.22 23.67 14.04 10.79 15.13 10.89 -- 10.95 Dec-13 S&P 500 2.17 2.17 3.90 23.16 14.33 10.78 14.91 10.78 13.70 11.14 Dec-13 Eagle Capital Management 10,965,423 11.58 4.02 4.02 2.54 24.22 13.77 10.73 15.30 10.98 -- 13.77 Oct-12 S&P 500 2.17 2.17 3.90 23.16 14.33 10.78 14.91 10.78 13.70 13.39 Oct-12 Vanguard 500 Index Admiral 11,313,020 11.95 2.16 2.16 3.89 23.14 14.30 10.74 14.87 10.74 -- 13.38 Sep-12 S&P 500 2.17 2.17 3.90 23.16 14.33 10.78 14.91 10.78 13.70 13.41 Sep-12 US Stock Small 9,925,231 10.48 0.47 0.47 -1.23 18.80 9.06 6.04 13.31 8.51 -- 6.65 Dec-13 Russell 2000 2.63 2.63 0.17 17.18 4.90 3.37 10.96 7.37 12.27 6.63 Dec-13 Conestoga Small Cap Investors 4,995,002 5.28 -1.65 -1.65 -5.27 16.90 7.21 8.58 18.82 13.23 -- 10.92 Apr-14 Russell 2000 2.63 2.63 0.17 17.18 4.90 3.37 10.96 7.37 12.27 6.46 Apr-14 Fuller & Thaler Behav Sm-Cp Eq Inst 4,930,230 5.21 2.70 2.70 3.23 20.78 11.01 ------3.54 Mar-18 Russell 2000 2.63 2.63 0.17 17.18 4.90 3.37 10.96 7.37 12.27 0.52 Mar-18 International 13,678,215 14.45 2.80 2.80 1.67 20.90 13.47 0.78 8.02 3.60 -- 3.27 Dec-13 MSCI ACWI ex USA 3.49 3.49 1.63 15.45 11.27 1.04 8.07 3.82 4.94 3.09 Dec-13 Dodge & Cox International Stock Caution 4Q17 6,573,652 6.94 3.51 3.51 1.80 14.90 7.22 -2.20 5.92 1.70 5.66 2.19 Dec-07 MSCI ACWI ex USA 3.49 3.49 1.63 15.45 11.27 1.04 8.07 3.82 4.94 1.47 Dec-07 WCM Focused International Growth Instl 7,104,563 7.50 2.14 2.14 1.55 ------14.75 Mar-19 MSCI ACWI ex USA 3.49 3.49 1.63 15.45 11.27 1.04 8.07 3.82 4.94 6.05 Mar-19 International Small Stocks 6,202,368 6.55 T. Rowe Price International Discovery 6,202,368 6.55 4.50 4.50 1.77 17.30 10.07 0.48 9.53 -- -- 9.12 Sep-16 MSCI ACWI ex US Small Cap 4.05 4.05 2.82 14.75 8.77 -0.91 6.98 5.31 6.67 6.61 Sep-16 International Emerging Stocks 5,516,601 5.83 DFA Emerging Markets Core Equity I Caution 3Q17 5,516,601 5.83 3.99 3.99 -0.36 9.15 11.61 -1.73 6.20 2.61 -- 4.52 Dec-11 MSCI Emerging Markets 4.22 4.22 -0.21 10.36 11.86 -1.08 7.36 2.93 3.78 4.34 Dec-11 Fixed 11,420,180 12.06 0.05 0.05 0.63 5.74 6.66 2.80 2.28 2.59 -- 3.01 Dec-13 BBgBarc US Aggregate TR 0.30 0.30 2.58 8.85 11.51 4.51 3.29 3.24 3.73 3.65 Dec-13 Barrow Hanley 5,818,769 6.15 0.20 0.20 2.38 8.77 10.97 4.16 3.31 3.20 3.74 4.20 Apr-03 BBgBarc US Aggregate TR 0.30 0.30 2.58 8.85 11.51 4.51 3.29 3.24 3.73 4.16 Apr-03
Prepared by The Atlanta Consulting Group 159 University of West Florida Foundation As of October 31, 2019 Fiscal Year End: June Fiscal Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status YTD ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date (%)
_ Templeton Global Bond Fund 2,677,992 2.83 -0.24 -0.24 -3.57 -0.90 -0.90 -0.36 ------0.33 Apr-17 FTSE WGBI TR 0.54 0.54 1.39 6.84 9.92 3.74 2.55 1.96 1.73 4.13 Apr-17 Chartwell Short Duration High Yield 2,923,419 3.09 0.00 0.00 1.20 6.37 5.89 3.18 ------3.23 May-17 ICE BofAML US Corp and High Yield 1-3 0.41 0.41 1.42 5.18 5.71 3.36 3.05 2.70 3.18 3.24 May-17 Yr MLP 4,136,741 4.37 Tortoise MLP & Pipeline Instl 4,136,741 4.37 -4.34 -4.34 -7.12 12.14 0.46 0.12 0.25 -4.12 -- -1.93 Apr-14 Alerian MLP TR USD -6.22 -6.22 -10.93 4.18 -6.36 -2.90 -3.06 -8.96 5.27 -6.61 Apr-14 Fund of Funds 9,047,431 9.55 Ironwood International Ltd. 9,047,431 9.55 0.31 0.31 0.73 5.57 3.74 3.65 5.07 3.92 5.86 4.35 Mar-05 HFRI FOF: Conservative Index 0.85 0.85 0.77 5.45 3.61 2.43 3.33 2.40 2.79 2.36 Mar-05 Real Estate 3,274,674 3.46 0.00 0.00 2.64 5.63 7.16 9.96 11.51 16.68 -- 15.14 Dec-13 FTSE NAREIT All Equity REIT 1.08 1.08 8.90 29.88 25.32 12.74 11.21 9.33 14.19 11.93 Dec-13 Harbert US RE Fund V LP 1,013,846 1.07 0.00 0.00 -1.37 2.31 1.47 6.15 8.79 14.23 -- 11.71 Nov-13 FTSE NAREIT All Equity REIT 1.08 1.08 8.90 29.88 25.32 12.74 11.21 9.33 14.19 10.60 Nov-13 Harbert US RE Fund VI LP 2,215,436 2.34 0.00 0.00 4.75 7.73 11.46 ------12.74 Nov-17 FTSE NAREIT All Equity REIT 1.08 1.08 8.90 29.88 25.32 12.74 11.21 9.33 14.19 12.74 Nov-17 Harbert US RE Fund IV LP 45,391 0.05 Private Equity 3,919,134 4.14 0.00 0.00 3.41 5.85 10.06 15.08 14.82 11.16 -- 11.37 Dec-13 Cambridge Assoc. U.S. PE Index 0.00 0.00 0.00 4.81 3.63 9.59 12.24 10.59 13.51 10.93 Dec-13 Portfolio Advisors PE Offshore V 269,579 0.28 0.00 0.00 2.05 -0.97 2.57 9.84 10.89 7.95 10.20 7.62 Dec-08 Cambridge Assoc. U.S. PE Index 0.00 0.00 0.00 4.81 3.63 9.59 12.24 10.59 13.51 13.30 Dec-08 Portfolio Advisors PE VII 747,384 0.79 0.00 0.00 11.96 17.47 26.80 24.74 20.68 14.53 -- 14.83 Apr-13 Cambridge Assoc. U.S. PE Index 0.00 0.00 0.00 4.81 3.63 9.59 12.24 10.59 13.51 12.07 Apr-13 Portfolio Advisors PE Offshore X 1,118,117 1.18 Portfolio Advisors Secondary Fund III, L.P. 1,193,806 1.26 0.00 0.00 0.00 3.01 10.54 10.76 ------29.92 Aug-17 Cambridge Assoc. U.S. PE Index 0.00 0.00 0.00 4.81 3.63 9.59 12.24 10.59 13.51 10.29 Aug-17 StepStone Pioneer Capital III, L.P. 590,248 0.62 0.00 0.00 0.00 1.31 -1.86 9.35 8.19 7.94 -- 14.64 Dec-09 Cambridge Assoc. U.S. PE Index 0.00 0.00 0.00 4.81 3.63 9.59 12.24 10.59 13.51 13.91 Dec-09 Private Debt 1,047,663 1.11 0.00 0.00 0.00 6.42 8.70 15.96 12.77 -- -- 12.72 Oct-16 BBgBarc US Aggregate TR 0.30 0.30 2.58 8.85 11.51 4.51 3.29 3.24 3.73 3.31 Oct-16 Portfolio Advisors Direct Credit II 647,663 0.68 0.00 0.00 0.00 6.40 8.71 15.97 12.77 -- -- 12.72 Oct-16 BBgBarc US Aggregate TR 0.30 0.30 2.58 8.85 11.51 4.51 3.29 3.24 3.73 3.31 Oct-16
Prepared by The Atlanta Consulting Group 160 University of West Florida Foundation As of October 31, 2019 Fiscal Year End: June Fiscal Market Value % of 1 Mo QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 10 Yrs Inception Inception Manager Status YTD ($) Portfolio (%) (%) (%) (%) (%) (%) (%) (%) (%) Date (%)
_ Golub Capital Partners Intl 12 LP 400,000 0.42 0.00 0.00 0.00 6.49 ------6.49 Dec-18 Cliffwater Direct Lending Index 0.00 0.00 0.00 5.09 5.97 7.64 8.18 7.93 10.37 5.09 Dec-18 Cash/Short Term Fixed Income 4,241,401 4.48 PIMCO Short-Term Instl 4,204,460 4.44 0.09 0.09 0.82 2.39 1.83 2.05 2.27 -- -- 2.49 Jan-16 FTSE T-Bill 3 Months TR 0.17 0.17 0.74 1.96 2.35 2.01 1.57 0.99 0.53 1.31 Jan-16 Cash 36,940 0.04
XXXXX - Balanced Index = Weighted Average of S&P 500 / Russell 2000 / MSCI ACWI ex USA / MSCI ACWI ex US Small Cap / MSCI Emerging Markets / BBgBarc US Aggregate TR / FTSE WGBI TR / ICE BofAML US Corp and High Yield 1-3 Yr / Alerian MLP TR USD / HFRI FOF: Conservative Index / FTSE NAREIT All Equity REIT / Cambridge Assoc. U.S. PE Index / BBgBarc US Aggregate TR / Cliffwater Direct Lending Index / FTSE T-Bill 3 Months TR / FTSE T-Bill 1 Month TR - CPI+4% = Consumer Price Index+0.00327 100 - Cambridge Assoc. U.S. PE Index = Cambridge Assoc. U.S. Private Equity Legacy Index - Cliffwater Direct Lending Index = Cliffwater Direct Lending Index
Prepared by The Atlanta Consulting Group 161 DISCLOSURE
Investing is subject to a high degree of investment risk, including the possible loss of the entire amount of an investment. You should carefully read and review all information provided by The Atlanta Consulting Group Advisors, LLC (“ACG”), including ACG’s Form ADV, Part 2A brochure and all supplements thereto, before making an investment.
The information contained herein reflects the opinions and projections of the ACG as of the date of publication, which are subject to change without notice at any time subsequent to the date of issue. All information provided is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. You should not treat these materials as advice in relation to legal, taxation, or investment matters.
Various indices, including, but not limited to the S&P 500 Index, the FTSE 3-Month Treasury Bill Index, and the Russell 2000 index (each, an “Index”) are unmanaged indices of securities that are used as general measures of market performance, and their performance is not reflective of the performance of any specific investment. The Index comparisons are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of an account managed by ACG and each Index may not be comparable. There may be significant differences between an account managed by ACG and each Index, including, but not limited to, risk profile, liquidity, volatility and asset comparison. The performance shown for each Index reflects no deduction for client withdrawals, fees or expenses. Accordingly, comparisons against the Index may be of limited use. Investments cannot be made directly into an Index.
Historical returns data has been compiled using data calculated by ACG and third parties (e.g., Morningstar and mutual funds). ACG has not independently verified data provided by third parties and cannot and does not guarantee the accuracy of data calculated by third parties. All information provided is for informational purposes only and should not be deemed as advice in relation to legal, taxation, or investment matters. No representations or warranties whatsoever are made by ACG or any other person or entity as to the future profitability of an account or the results of making an investment. Past performance is no guarantee of future results. An investment in an account is subject to a high degree of investment risk, including the possible loss of the entire amount of investment.
Statements herein that reflect projections or expectations of future financial or economic performance of the Fund are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or ACG’s actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Any projections and forward-looking statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the confidential offering document. Actual results for any period may or may not approximate such forward-looking statements. You are advised to consult with your independent tax and business advisors concerning the validity and reasonableness of the factual, accounting and tax assumptions. No representations or warranties whatsoever are made by ACG any other person or entity as to the future profitability of investments recommended by ACG.
This report is based on transaction records, portfolio valuations, and performance supplied by the client, the custodian, the investment manager, and investment databases including Bloomberg and Morningstar. Due to the timeliness of this report performance information may be preliminary and therefore subject to audit. This report is complete and accurate to the best of our knowledge.
We urge you to take a moment to compare the account balances contained in this report to those balances reflected on the statem ents that you receive directly from your account’s custodian. Please contact us or the account custodian with any questions you may have. Also, ple ase notify us promptly if you do not receive statements on all accounts from the custodian on at least a quarterly basis.
162 The University of West Florida Foundation, Inc. Earnings vs Expenses Obligated As of September 30, 2019
Investment Earnings 9/30/2019 12/31/19 03/31/20 06/30/20 To Date Interest Income $ 31,086.14 $ 31,086.14 Dividend Income 238,412.90 238,412.90 Realized Gain/Loss 267,068.53 267,068.53 Unrealized Gain/Loss (1,185,792.63) (1,185,792.63) Rental Income - - Other Charges & Fees (2,797.77) (2,797.77) Investment Fees (34,654.08) (34,654.08) Consultant Fees (23,413.69) (23,413.69) Total $ (710,090.60) $ - $ - $ - $ (710,090.60)
Spending Rate @ Spending Rate @ Spending Rate @ Spending Rate @ Spending Rate @ 4.00% 4.00% 4.00% 4.00% 4.00% FY 19/20 Expenses Obligated FY 18/19 FY 17/18 FY 16/17 FY 15/16 Investment Earnings $ (710,090.60) $ 3,422,523.82 $ 6,829,701.07 $ 10,473,662.14 $ (2,061,514.57)
Dept. Allocated Spending 2,730,281.77 2,606,226.38 2,451,182.84 2,218,141.35 2,169,804.07 Operating Budget 1,507,752.00 1,366,719.00 1,333,148.00 1,298,107.00 1,249,987.00 Non-Endowed Budget 626,000.00 591,000.00 511,000.00 473,000.00 429,000.00 Total Committed Expenses 4,864,033.77 4,563,945.38 4,295,330.84 3,989,248.35 3,848,791.07
Income Versus Expenses $ (5,574,124.37) $ (1,141,421.56) $ 2,534,370.23 $ 6,484,413.79 $ (5,910,305.64)
X:\FOUNDATION -Board Stuff\FDN - Investment Committee\FY 2020 Invest Minutes and Agendas\11.21.19\Earnings vs Expenses 9.30.19 Other UWF Foundation Assets
Charitable Gift Annuity
Definition: A charitable gift annuity enables you to transfer cash or marketable securities to the charitable organization issuing the gift annuity in exchange for a current income tax deduction and the organization's promise to make fixed annual payments to you for life. Annuity payments can begin immediately or can be deferred to some future date.
Current Assets held by the UWF Foundation as of 9/30/2019
Cornerstone $ 3,056,367.28
Annuitant 1 $ -
Annuitant 2 $ 13,901.39
Annuitant 3 $ 2,927,651.62
Annuitant 4 $ 114,814.28
Annuity Commitments as of 6/30/2019
Commitment Age Annuitant 1 $ - Deceased
Annuitant 2 $ 8,579.60 ** 89 @ 06.30.19
Annuitant 3 $ 2,123,810.50 ** 93 @ 06.30.19
Annuitant 4 $ 57,112.68 ** 77 @ 06.30.19
**6.30.19 FASB Balances adjusted for Annuity Payments; alignment of calculation done by Cornerstone fiscal year end.
Insurance Insurance Commitments as of 6/30/2019 *** Face Value Cash Value Interest Credit Cost Per Year
Insurant 1 $ 100,000 $ 47,524.74 $ 2,344.83 $ 870.80
Insurant 3 $ 175,000 $ 14,513.61 $ 14,513.61 $ 20,000.00
Insurant 4 $ 100,000 $ 15,637.50 $ 290.17 $ 962.14
Insurant 5 $ 1,000,000 $ 228,299.57 $ 6,887.70 $ 65,000.00
***Numbers represent 6.30.19 balances as information is only supplied at year end from insurance companies. Audit Budget Committee Reports
University of West Florida Foundation Income Statement Housing Budget to Actual for the UWF Foundation Board
Quarter Ending Year to Date Actual Budget Variance Amt. Variance % Actual to Date Budget to Date Variance Amt. Variance % Budget 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 6/30/2020 Notes Revenues 97-42113 INTEREST INCOME - HOUSING $7,101.33 $8,000.00 ($898.67) (11.23%) $7,101.33 $8,000.00 ($898.67) (11.23%) $30,500.00 1 97-42114 INTEREST INCOME - SPIA $29,195.00 $21,250.00 $7,945.00 37.39% $29,195.00 $21,250.00 $7,945.00 37.39% $125,000.00 97-43012 RENTAL INCOME - HOUSING $4,274,134.49 $4,192,342.33 $81,792.16 1.95% $4,274,134.49 $4,192,342.33 $81,792.16 1.95% $9,667,224.13 97-44000 CONCESSIONS REVENUE $5,028.35 $3,384.43 $1,643.92 48.57% $5,028.35 $3,384.43 $1,643.92 48.57% $50,000.00 97-45000 OTHER INCOME - HOUSING $93,671.11 $51,407.72 $42,263.39 82.21% $93,671.11 $51,407.72 $42,263.39 82.21% $205,000.00 Total Revenues $4,409,130.28 $4,276,384.48 $132,745.80 3.10% $4,409,130.28 $4,276,384.48 $132,745.80 3.10% $10,077,724.13
Expenses 97-51010 SALARIES - FACULTY & STAFF $208,328.04 $217,650.00 $9,321.96 4.28% $208,328.04 $217,650.00 $9,321.96 4.28% $933,027.64 97-51137 OPS - STAFF $101,722.78 $125,000.00 $23,277.22 18.62% $101,722.78 $125,000.00 $23,277.22 18.62% $1,156,404.76 97-52110 TRAVEL $298.00 $4,000.00 $3,702.00 92.55% $298.00 $4,000.00 $3,702.00 92.55% $10,000.00 97-53150 CONCESSION EXP - HOUSING $17,306.52 $19,352.66 $2,046.14 10.57% $17,306.52 $19,352.66 $2,046.14 10.57% $55,000.00 97-54100 PROFESSIONAL DEVELOPMENT $820.00 $2,272.00 $1,452.00 63.91% $820.00 $2,272.00 $1,452.00 63.91% $6,750.00 97-54110 MEMBERSHIPS & DUES $1,203.00 $1,200.00 ($3.00) (0.25%) $1,203.00 $1,200.00 ($3.00) (0.25%) $1,800.00 97-55100 RECRUITMENT - TRAVEL $0.00 $1,500.00 $1,500.00 100.00% $0.00 $1,500.00 $1,500.00 100.00% $3,000.00 97-55110 RECRUITMENT - MEALS $0.00 $1,200.00 $1,200.00 100.00% $0.00 $1,200.00 $1,200.00 100.00% $2,000.00 97-70100 OFFICE EXPENSES - COPYING $795.02 $1,028.71 $233.69 22.72% $795.02 $1,028.71 $233.69 22.72% $3,000.00 97-70110 OFFICE EXPENSES - POSTAGE $21.11 $300.00 $278.89 92.96% $21.11 $300.00 $278.89 92.96% $1,000.00 97-70120 OFFICE EXPENSES - PRINT/DUPL $2,196.97 $1,200.00 ($996.97) (83.08%) $2,196.97 $1,200.00 ($996.97) (83.08%) $3,000.00 2 97-70130 OFFICE EXPENSES - MKTG COMM $9,053.59 $5,500.00 ($3,553.59) (64.61%) $9,053.59 $5,500.00 ($3,553.59) (64.61%) $17,000.00 3 97-70140 OFFICE SUPPLIES $1,448.13 $2,039.98 $591.85 29.01% $1,448.13 $2,039.98 $591.85 29.01% $6,000.00 97-70220 COMPUTER - SOFTWARE SUPPORT $10,169.88 $12,000.00 $1,830.12 15.25% $10,169.88 $12,000.00 $1,830.12 15.25% $82,920.00 97-70300 TELEPHONE $2,552.85 $3,100.00 $547.15 17.65% $2,552.85 $3,100.00 $547.15 17.65% $12,450.00 97-71100 EQUIPMENT - GENERAL $13.82 $550.00 $536.18 97.49% $13.82 $550.00 $536.18 97.49% $1,500.00 97-71200 EQUIPMENT - COMPUTER $3,401.16 $4,000.00 $598.84 14.97% $3,401.16 $4,000.00 $598.84 14.97% $8,000.00 97-72110 CLEANING SUPPLIES $9,182.31 $6,000.00 ($3,182.31) (53.04%) $9,182.31 $6,000.00 ($3,182.31) (53.04%) $20,000.00 4 97-72200 HSG REPAIR & MAINT. - MISCELLANEOUS $5,939.87 $6,800.00 $860.13 12.65% $5,939.87 $6,800.00 $860.13 12.65% $20,000.00 97-72210 HSG REPAIR & MAINT.- TOOLS $86.14 $1,500.00 $1,413.86 94.26% $86.14 $1,500.00 $1,413.86 94.26% $2,500.00 97-72215 HSG REPAIR & MAINT. - LOCKS & KEYS $9,974.22 $2,500.00 ($7,474.22) (298.97%) $9,974.22 $2,500.00 ($7,474.22) (298.97%) $4,000.00 5 97-72220 HSG REPAIR & MAINT. - LANDSCAPING $400.76 $7,478.43 $7,077.67 94.64% $400.76 $7,478.43 $7,077.67 94.64% $15,000.00 97-72225 HSG REPAIR & MAINT. - PLUMBING $1,269.05 $600.00 ($669.05) (111.51%) $1,269.05 $600.00 ($669.05) (111.51%) $1,000.00 6 97-72230 HSG REPAIR & MAINT. - FIRE ALARM $8,051.88 $200.00 ($7,851.88) (3925.94%) $8,051.88 $200.00 ($7,851.88) (3925.94%) $1,000.00 7 97-72235 HSG REPAIR & MAINT. - AIR HANDLERS $8,758.81 $6,500.00 ($2,258.81) (34.75%) $8,758.81 $6,500.00 ($2,258.81) (34.75%) $15,000.00 8 97-72240 HSG REPAIR & MAINT. - ELEVATORS $42,050.16 $500.00 ($41,550.16) (8310.03%) $42,050.16 $500.00 ($41,550.16) (8310.03%) $1,000.00 9 97-72245 HSG REPAIR & MAINT. - ELECTRICAL & HVAC $2,383.20 $2,189.17 ($194.03) (8.86%) $2,383.20 $2,189.17 ($194.03) (8.86%) $10,000.00 97-72250 HSG REPAIR & MAINT. - PEST CONTROL $2,772.50 $1,911.36 ($861.14) (45.05%) $2,772.50 $1,911.36 ($861.14) (45.05%) $9,000.00 10 97-72255 HSG REPAIR & MAINT. - UNIFORMS $0.00 $1,500.00 $1,500.00 100.00% $0.00 $1,500.00 $1,500.00 100.00% $3,000.00 97-72310 HOUSING - VEHICLE GAS $1,933.95 $2,410.96 $477.01 19.79% $1,933.95 $2,410.96 $477.01 19.79% $7,000.00 97-72320 HOUSING - VEHICLE REPAIR & MAINT. $4,608.16 $3,075.85 ($1,532.31) (49.82%) $4,608.16 $3,075.85 ($1,532.31) (49.82%) $10,000.00 11 97-72400 OPER EXP - HOUSING SUPPLIES $18,918.30 $10,790.85 ($8,127.45) (75.32%) $18,918.30 $10,790.85 ($8,127.45) (75.32%) $32,000.00 12 97-72900 RENEWAL & REPLACEMENT $71,271.03 $79,023.90 $7,752.87 9.81% $71,271.03 $79,023.90 $7,752.87 9.81% $300,000.00 97-72910 CONTINGENCY & IMPROVEMENT EXP $283,687.50 $205,038.21 ($78,649.29) (38.36%) $283,687.50 $205,038.21 ($78,649.29) (38.36%) $600,000.00 13 97-73100 DEPREC/AMORT EXPENSE - OFFICE $1,845.33 $1,845.33 $0.00 0.00% $1,845.33 $1,845.33 $0.00 0.00% $7,381.30 97-73205 DEPRECIATION EXP - VILLAGE WEST $101,839.05 $101,839.05 $0.00 0.00% $101,839.05 $101,839.05 $0.00 0.00% $407,356.16 97-73210 DEPRECIATION EXP - VILLAGE EAST $138,170.16 $138,170.16 $0.00 0.00% $138,170.16 $138,170.16 $0.00 0.00% $552,680.62 97-73215 DEPRECIATION EXP - ARGO HALL $55,489.26 $55,489.26 $0.00 0.00% $55,489.26 $55,489.26 $0.00 0.00% $221,957.10 97-73220 DEPRECIATION EXP - MARTIN $79,070.10 $79,070.10 $0.00 0.00% $79,070.10 $79,070.10 $0.00 0.00% $307,247.78 97-73225 DEPRECIATION EXP - PACE HALL $53,803.86 $53,803.86 $0.00 0.00% $53,803.86 $53,803.86 $0.00 0.00% $215,215.39
Quarter Ending Year to Date Actual Budget Variance Amt. Variance % Actual to Date Budget to Date Variance Amt. Variance % Budget 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 9/30/2019 6/30/2020 Notes 97-73230 DEPRECIATION EXP - HERITAGE $133,806.75 $133,806.75 $0.00 0.00% $133,806.75 $133,806.75 $0.00 0.00% $535,227.01 97-73235 DEPRECIATION EXP - PRESIDENTS $189,203.58 $189,203.58 $0.00 0.00% $189,203.58 $189,203.58 $0.00 0.00% $756,814.31 97-74200 INTEREST EXPENSE - HOUSING ($143,936.02) ($143,936.02) $0.00 0.00% ($143,936.02) ($143,936.02) $0.00 0.00% $1,600,716.00 97-74300 HOUSING - MISC. OPERATING ADMIN FEES $307.02 $2,265.06 $1,958.04 86.45% $307.02 $2,265.06 $1,958.04 86.45% $4,500.00 97-74310 HOUSING - OTHER MISC. OPER EXP $29,944.04 $32,350.00 $2,405.96 7.44% $29,944.04 $32,350.00 $2,405.96 7.44% $35,700.00 97-74315 HOUSING - MEAL PLANS $6,000.00 $9,000.00 $3,000.00 33.33% $6,000.00 $9,000.00 $3,000.00 33.33% $14,000.00 97-75005 HOUSING UTILITIES - ELECTRICAL $197,872.96 $202,950.00 $5,077.04 2.50% $197,872.96 $202,950.00 $5,077.04 2.50% $750,000.00 97-75010 HOUSING UTILITIES - GAS $3,266.83 $4,313.60 $1,046.77 24.27% $3,266.83 $4,313.60 $1,046.77 24.27% $32,000.00 97-75015 HOUSING UTILITIES - SEWER $14,698.86 $18,360.00 $3,661.14 19.94% $14,698.86 $18,360.00 $3,661.14 19.94% $120,000.00 97-75020 HOUSING UTILITIES - WATER $367.22 $613.70 $246.48 40.16% $367.22 $613.70 $246.48 40.16% $3,800.00 97-75025 HOUSING UTILITIES - GARBAGE $12,167.25 $14,000.00 $1,832.75 13.09% $12,167.25 $14,000.00 $1,832.75 13.09% $50,000.00 97-75030 HOUSING UTILITIES - CABLE $29,425.38 $44,175.00 $14,749.62 33.39% $29,425.38 $44,175.00 $14,749.62 33.39% $170,000.00 97-75100 HOUSING - INSURANCE $6,859.91 $0.00 ($6,859.91) 0.00% $6,859.91 $0.00 ($6,859.91) 0.00% $10,600.00 97-75110 INSURANCE - BOND $0.00 $0.00 $0.00 0.00% $0.00 $0.00 $0.00 0.00% $70,000.00 97-75115 INSURANCE - AUTOMOBILE ($18.00) $0.00 $18.00 0.00% ($18.00) $0.00 $18.00 0.00% $24,000.00 97-75120 INSURANCE - PROPERTY $80,161.29 $90,000.00 $9,838.71 10.93% $80,161.29 $90,000.00 $9,838.71 10.93% $90,000.00 97-75200 BOND EXPENSES $0.00 $3,762.50 $3,762.50 100.00% $0.00 $3,762.50 $3,762.50 100.00% $21,000.00 97-76060 PROFESSIONAL SERVICES $2,250.00 $10,000.00 $7,750.00 77.50% $2,250.00 $10,000.00 $7,750.00 77.50% $26,000.00 97-76110 BANK SERVICE CHARGES $1,352.89 $1,254.01 ($98.88) (7.89%) $1,352.89 $1,254.01 ($98.88) (7.89%) $3,250.00 97-76115 ADMINISTRATIVE FEE - SPIA $974.70 $887.64 ($87.06) (9.81%) $974.70 $887.64 ($87.06) (9.81%) $7,000.00 97-76117 ADMINISTRATIVE FEE - HSG ($13,147.64) $0.00 $13,147.64 0.00% ($13,147.64) $0.00 $13,147.64 0.00% $125,972.18 Total Expenses $1,812,393.49 $1,783,135.66 ($29,257.83) (1.64%) $1,812,393.49 $1,783,135.66 ($29,257.83) (1.64%) $9,515,770.25
Notes 1 INTEREST INCOME - HOUSING Interest on Synovous bank account lower than estimated. 2 OFFICE EXPENSES - PRINT/DUPL Increased effort in marketing to new and existing students to keep occupancy high 3 OFFICE EXPENSES - MKTG COMM Increased effort in marketing to new and existing students to keep occupancy high 4 CLEANING SUPPLIES Cleaning up after summer camps resulted in higher than expected cleaning costs 5 HSG REPAIR & MAINT. - LOCKS & KEYS Our key cutting machine required replacement and we changed the locks and keys in Argo, Martin and Pace Halls to enable use of master and sub-master key system. 6 HSG REPAIR & MAINT. - PLUMBING Repair costs that were included in the Renewal and Replacement line for budget purposes are now charged to this line. 7 HSG REPAIR & MAINT. - FIRE ALARM Repair costs that were included in the Renewal and Replacement line for budget purposes are now charged to this line. 8 HSG REPAIR & MAINT. - AIR HANDLERS Repair costs that were included in the Renewal and Replacement line for budget purposes are now charged to this line. 9 HSG REPAIR & MAINT. - ELEVATORS Annual cost of the elevator repair service contract. This is in the budget under the Renewal and Replacement line 10 HSG REPAIR & MAINT. - PEST CONTROL The contract we were under the last five years has expired and the new contract is not in place so we are experiencing higher costs. 11 HOUSING - VEHICLE REPAIR & MAINT. Our aging fleet of repair vehicles are experiencing increasing costs to maintain. We will begin replacing them this year and over the next several years. 12 OPER EXP - HOUSING SUPPLIES We have experienced an increase in appliances that have required replacement 13 CONTINGENCY & IMPROVEMENT EXP Costs of summer repairs have put this line over budget. Prepared by: ______Reviewed by: ______
Bond Convenant Calcuation 6/30/2020 Notes: Housing Income per Housing Statement of Revenue and Expenses 10,240,254.55 State Interest Recapture Housing Expense per Housing Statement of Revenue and Expenses (9,546,859.52) Total Revenue 10,240,254.55 Adjusted Net Income (Loss) 693,395.03 DEPRECIATION EXP--TRUCK 7,381.30 Add: DEPRECIATION EXP--VILLAGE WEST 407,356.16 Interest Expense 1,600,716.00 DEPRECIATION EXP--VILLAGE EAST 552,680.64 Amortization Expense - DEPRECIATION EXP--SOUTHSIDE - Depreciation Expense 3,003,879.69 DEPRECIATION EXP--MARTIN 307,247.78 Contingency and Improvement DEPRECIATION EXP--ARGO 221,957.10 Renewals & Replacements 267,496.07 DEPRECIATION EXP-- PACE 215,215.39 Adjusted Net Revenue 5,565,486.78 DEPRECIATION EXP-- HERITAGE 535,227.01 DEPRECIATION EXP-- PRESIDENTS 756,814.31 Debt Service 2019-2020 2005 Bond Principal - OPERATING EXPENSES-PAYROLL 2,059,206.05 2005 Bond Interest INTEREST EXPENSE - HOUSING 1,600,716.00 Rev of prior year acrual (145,313.95) AMORTIZATION EXPENSE - HOUSING - Interest Payable 124,748.00 OPERATING EXPENSES- R&M 1,184,414.98 2009 Bond Principal - OPERATING EXPENSES-Admin & Gen 407,853.40 2009 Bond Interest - OPERATING EXPENSES- Utilities 1,099,186.20 2010/2015 Bond Interest - OPERATING EXPENSES- Insurance 191,603.20 2010/2015 Bond Principal - OPERATING EXPENSES- Other 2011 Bond Interest - CONSTRUCTION EXP - 2011 Bond Principal - 2015 Bond Initerest - Total Expenditure 9,546,859.52 2015 Bond Principal - 2016A Bond Initerest 1,061,481.26 2016A Bond Principal 1,210,000.00 2016B Bond Initerest 185,102.50 Net Income 693,395.03 2016B Bond Principal 670,500.00 2016C Bond Initerest 354,131.82 9,546,859.52 2016C Bond Principal 799,871.00 4,604,595.69 Less Capitalized Interest - 4,942,263.83 Total Debt Service 2019-2020 4,260,520.63
Net Revenue 5,565,486.78 Total Debt Service 4,260,520.63 Debt Coverage Ratio# 1.31
#Debt Coverage Ratio is stated at 1.20 per bond documents. University of West Florida Foundation A COMPONENT UNIT OF THE UNIVERSITY OF WEST FLORIDA BUDGETED STATEMENT OF FUNCTIONAL EXPENSES
Actual Other Program Student HSG Expenses Budget Scholarship Services System Fundraising General & Admin 9/30/2019 9/30/2019 Variance % Unspent Operating Budget
Advancement Services $0.00 $0.00 $0.00 $0.00 $2,248.15 $2,248.15 $6,825.00 $4,576.85 67.06% Alumni Relations $0.00 $0.00 $0.00 $0.00 $29,737.41 $29,737.41 $30,000.00 $262.59 0.88% Board of Directors $0.00 $0.00 $0.00 $0.00 $15,211.71 $15,211.71 $16,000.00 $788.29 4.93% Development $8,818.90 $0.00 $0.00 $94,857.12 $103,676.02 $143,819.25 $40,143.23 27.91% Foundation $0.00 $0.00 $0.00 $0.00 $99,636.15 $99,636.15 $129,754.74 $30,118.59 23.21% Total Adv. Division Lines $8,818.90 $0.00 $0.00 $94,857.12 $146,833.42 $250,509.44 $326,398.99 $75,889.55 23.25%
Executive $0.00 $0.00 $0.00 $0.00 $29,550.46 $29,550.46 $57,551.49 $28,001.03 48.65% Total $0.00 $0.00 $0.00 $0.00 $29,550.46 $29,550.46 $57,551.49 $28,001.03 48.65%
Total of Operating Budget $8,818.90 $0.00 $0.00 $94,857.12 $176,383.88 $280,059.90 $383,950.48 $103,890.58 19.85%
Non-Endowed Budget
Non-Endowed Budget $0.00 $105,034.60 $0.00 $2,500.00 $64,959.27 $172,493.87 $183,999.99 $11,506.12 6.25% Total Non-Endowed Budget $0.00 $105,034.60 $0.00 $2,500.00 $64,959.27 $172,493.87 $183,999.99 $11,506.12 6.25%
Other Areas
Admistrative Fee $0.00 $0.00 $0.00 $0.00 $0.00 $74,385.24 $85,000.00 $10,614.76 12.49% Housing $0.00 $0.00 $1,812,393.00 $0.00 $0.00 $1,812,393.00 $1,783,135.66 ($29,257.34) (1.64%) Other University Accounts $2,000.01 $106,493.79 $0.00 $0.00 $604.23 $109,098.03 $109,098.03 $0.00 0.00% Total $2,000.01 $106,493.79 $1,812,393.00 $0.00 $604.23 $1,995,876.27 $1,977,233.69 ($18,642.58) (0.94%)
Total Other Areas $2,000.01 $106,493.79 $1,812,393.00 $0.00 $604.23 $1,995,876.27 $1,977,233.69 ($18,642.58) (0.94%)
Grand Total $10,818.91 $211,528.39 $1,812,393.00 $97,357.12 $241,947.38 $2,448,430.04 $2,545,184.16 $96,754.12 3.80% The University of West Florida Foundation, Inc. Prior Years Unspent Budget Report As of September 30, 2019
Unspent Division of Advancement Lines
Carried Forward Funds Total Carried Forward Budget 306,282.84
Expensed During 19/20 Commitment for meal plan scholarships 50,000.00 Alexander Haas & Gernerate (Consultants) 18,938.48 Freewill, Co. 7,753.42 Comm. Garden 7,000.00 Comm. Engagement 8,000.00 HAAS Center 4,000.00
Total FY 19/20 Expenses to Date 95,691.90
Net FY 19/20 Activity 210,590.94
Net Carry Forward FY 19/20 $ 210,590.94
X:\FOUNDATION -Board Stuff\FDN - Audit Budget Committee\2020 Audit Budget Minues & Agendas\11.21.19\Prior Years Unspent Budget Report 2019.09.30 (FDN)
Internal Control: A Tool for the Audit Committee
PURPOSE OF THIS TOOL: Internal control over financial reporting continues to be a major area of importance in the governance of an organization. This tool is intended to give audit committees basic information about internal control to understand what it is, what it is not, how it can be used most effectively in the organization, and the requirements of management with respect to the system of internal control over financial reporting. Note that the primary responsibility of the audit committee with respect to internal control is the system of internal control over financial reporting.
Basics of Internal Control In 1992, the Committee of Sponsoring Organizations of the Treadway Commission (COSO)1 published a document called Internal Control—Integrated Framework,2 which defined ` as “a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives” in the following three categories:
1. Effectiveness and efficiency of operations 2. Reliability of financial reporting 3. Compliance with applicable laws and regulations
Internal control can be judged as effective in each of these categories if the board of directors and management have reasonable assurance that
1. they understand the extent to which the organization’s operations objectives are being achieved. 2. published financial statements are being prepared reliably. 3. applicable laws and regulations are being complied with.
The COSO framework consists of five interrelated components as follows:
1. Control environment. Sometimes referred to as the “tone at the top” of the organization, meaning the integrity, ethical values, and competence of the organization’s people; management’s philosophy and operating style; the way management assigns authority and responsibility and organizes and develops its people; and the attention and direction provided by the board of directors. It is the foundation for all other components of internal control, providing discipline and structure. 2. Risk assessment. The identification and analysis of relevant risks to achieve the objectives that form the basis to determine how risks should be managed. This component should address the risks, both internal and external, that must be assessed. Before conducting a risk assessment, objectives must be set and linked at different levels.
1 The Committee of Sponsoring Organizations of the Treadway Commission (COSO) consists of the AICPA, the Institute of Management Accountants, the Institute of Internal Auditors, Financial Executives International, and the American Accounting Association. 2 The COSO publication Internal Control—Integrated Framework (product code no. 990012), may be purchased through the AICPA store at www.cpa2biz.com. The proceeds from the sale of the framework are used to support the continuing work of COSO.
Copyright © 2010. AICPA Inc. All Rights Reserved. 81 Permission is granted to download the tools and tailor or customize for internal use. The AICPA Audit Committee Toolkit: Not-for-Profit Organizations
3. Control activities. Policies and procedures that help ensure that management directives are carried out. Control activities occur throughout the organization at all levels in all functions. These include activities such as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets, and segregation of duties. 4. Information and communication. Addresses the need in the organization to identify, capture, and communicate information to the right people to enable them to carry out their responsibilities. Information systems within the organization are key to this element of internal control. Internal information, as well as external events, activities, and conditions must be communicated to enable management to make informed business decisions and for external reporting purposes. 5. Monitoring. The internal control system must be monitored by management and others in the organization. This is the framework element that is associated with the internal audit function in the organization, as well as other means of monitoring such as general management activities and supervisory activities. It is important that internal control deficiencies are reported upstream, and that serious deficiencies are reported to top management and the board of directors.
These five components are linked together, thus forming an integrated system that can react dynamically to changing conditions. The internal control system is intertwined with the organization’s operating activities, and is most effective when controls are built into the organization’s infrastructure, becoming part of the very essence of the organization.
Key Terms in Internal Control A few common internal control terms are described as follows:
Significant deficiency. Defined by Statement on Auditing Standards (SAS) No. 115, Communicating Internal Control Related Matters Identified in an Audit (AICPA, Professional Standards, vol. 1. AU sec. 325), a significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Material weakness. Defined by SAS No. 115 as a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Compensating controls. Some organizations, by virtue of their size, are not able to implement basic controls such as segregation of duties. In these cases, it is important that management institute compensating controls to cover for the lack of a basic control, or if a basic control is not able to function for some period of time.
What Internal Control Cannot Do As important as an internal control structure is to an organization, an effective system is not a guarantee that the organization will be successful. An effective internal control structure will keep the right people informed about the organization’s progress (or lack of progress) in achieving its objectives, but it cannot turn a poor manager into a good one. Internal control cannot ensure success, or even survival.
82 Copyright © 2010. AICPA Inc. All Rights Reserved. Permission is granted to download the tools and tailor or customize for internal use.
Internal Control: A Tool for the Audit Committee
Internal control is not an absolute assurance to management and the board about the organization’s achievement of its objectives. It can only provide reasonable assurance due to limitations inherent in all internal control systems. For example, breakdowns in the internal control structure can occur due to simple error or mistake, as well as faulty judgments that could be made at any level of management. In addition, controls can be circumvented by collusion or by management override. Finally, the design of the internal control system is a function of the resources available, meaning that a cost-benefit analysis must be in the design of the system.
Roles and Responsibilities Everyone in the organization has some role to play in the organization’s internal control system.
CEO/president/executive director. The CEO has ultimate responsibility and “ownership” of the internal control system. The individual in this role sets the tone at the top that affects the integrity and ethics and other factors that create the positive control environment needed for the internal control system to thrive. Aside from setting the tone at the top, much of the day-to-day operation of the control system is delegated to other senior managers in the organization, under the leadership of the CEO.
CFO/vice president of finance/director of finance. Much of the internal control structure flows through the accounting and finance area of the organization under the leadership of the CFO. In particular, controls over financial reporting fall within the domain of the CFO. The audit committee should use interactions with the CFO and others as a basis for their comfort level on the internal control over financial reporting.
This is not intended to suggest that the CFO must provide the audit committee with a level of assurance regarding the system of internal control over financial reporting. Rather, through interactions with the CFO and others, the audit committee should get a gut feeling about the completeness, accuracy, validity, and maintenance of the system of internal control over financial reporting.
Controller/director of accounting or finance. Much of the basics of the control system come under the domain of this position. It is key that the controller understands the need for the internal control system, is committed to the system, and communicates the importance of the system to all people in the accounting organization. Further, the controller must demonstrate respect for the system though his or her actions.
Internal audit. A main role for the internal audit team is to evaluate the effectiveness of the internal control system and contribute to its ongoing effectiveness. With the internal audit team reporting directly to the audit committee of the board of directors or the most senior levels of management, or both, it is often this function that plays a significant role in monitoring the internal control system. It is important to note that many not-for-profits are not large enough to employ an internal audit team. Each organization should assess the need for this team in light of available resources.
Board of directors/audit committee. A strong, active board is necessary. This is particularly important when the organization is controlled by an executive or management team with tight reins over the organization and the people within the organization. The board should recognize that its scope of oversight of the internal control system applies to all the three major areas of control: over operations, over compliance with laws and regulations, and over financial reporting. The audit committee is the board’s first line of defense with respect to the system of internal control over financial reporting.
Copyright © 2010. AICPA Inc. All Rights Reserved. 83 Permission is granted to download the tools and tailor or customize for internal use. The AICPA Audit Committee Toolkit: Not-for-Profit Organizations
All other personnel. The internal control system is only as effective as the employees throughout the organization that must comply with it. Employees throughout the organization should understand their role in internal control and the importance of supporting the system through their own actions and encouraging respect for the system by their colleagues throughout the organization.
Compensating Controls It is important to realize that both the design and compliance with the internal control system is important. The audit committee should be tuned-in to the tone at the top of the organization as a first indicator of the functioning of the internal control system.
In addition, audit committees should realize that the system of internal control should be scaled to the organization. Some organizations will be so small, for example, that they will not be able to have appropriate segregation of duties. The message here is that the lack of segregation of duties is not automatically a material weakness, or even a reportable condition, depending on the compensating controls that are in place.
For example, suppose an organization’s accounting department is so small that it is not possible to segregate duties between the person who does the accounts payable and the person who reconciles the bank statements. In this case, that person is one and the same, so the implication is that there are no checks and balances on the accounts payable person, who could be writing checks to a personal account, then passing on them during the bank reconciliation process (that is, there is no one to raise the red flag that personal checks are being written on the organization account).
Compensating controls could make up for this apparent breach in the internal control system. The following are some examples of compensating controls in this situation:
1. All checks are hand signed by an officer of the organization, rather than using a signature plate that is in the control of the person that prepared the checks. 2. The bank reconciliation may be reviewed by the preparer’s manager. 3. A periodic report of all checks that are cleared at the bank could be prepared by the bank and forwarded to an officer of the organization for review.
Audit committees should be aware of situations like this and be prepared to ask questions and evaluate the answers when an apparent breach in internal control is surfaced.
Management Override of Controls Another area that an audit committee needs to focus on is the ability of management to override internal controls over financial reporting to perpetrate a fraud. Examples of techniques used by management in overriding internal controls over the financial reporting function include the following:
Back dating or forward dating documents to a different period Making adjusting entries during the financial reporting closing process Reclassifying items improperly between the statement of activity and the statement of financial condition
84 Copyright © 2010. AICPA Inc. All Rights Reserved. Permission is granted to download the tools and tailor or customize for internal use.
Internal Control: A Tool for the Audit Committee
An audit committee has the responsibility to help prevent or deter a management override of controls. It is important for the audit committee to understand that a system exists to uncover an override, as well as follow-up to determine its appropriateness. Questions about management override, and the controls over management override, as well as audit steps to detect if a management override has occurred, should be addressed to the CEO, CFO, and external auditor during the respective executive (in-camera) sessions with the audit committee as noted elsewhere in this toolkit.
Conclusion This tool was intended to provide a summary of what is meant by internal control. The concepts are not complex, but sometimes the application of internal control can be a challenge in an organization, depending on its size and culture. However, it is vitally important to design the system of internal control to achieve the objectives of (1) effectiveness and efficiency of operations, (2) reliability of financial reporting, and (3) compliance with applicable laws and regulations.
Simply stated, a strong system of internal control (both in its design and compliance) is good business.
Internal Control—A Tool for the Audit Committee The following tool, “Internal Control—A Tool for the Audit Committee,” contains questions modeled on those found in the COSO report, Internal Control—Integrated Framework.
Copyright © 2010. AICPA Inc. All Rights Reserved. 85 Permission is granted to download the tools and tailor or customize for internal use.
Internal Control—A Tool for the Audit Committee
INSTRUCTIONS FOR USING THIS TOOL: This tool is created around the five interrelated components of an internal control structure. Within each component is a series of questions that the audit committee should focus on to assure itself that controls are in place and functioning. These questions should be discussed in an open forum with the individuals who have a basis for responding to the questions. The audit committee should ask for detailed answers and examples from the management team, including key members of the financial management team, internal auditors, and external auditors to assure itself that the system is operating as management represents. Evaluation of the internal control structure is not a one-time, but rather a continuous, activity for the audit committee—the audit committee should always have its eyes and ears open for potential weaknesses in internal control and should continuously probe the responsible parties regarding the operation of the system. These questions are written in a manner such that a “no response” indicates a weakness that must be addressed.
Not Control Environment—Tone at the Top Yes No Sure Comments Integrity and Ethical Values 1. Does the organization have a comprehensive X code of conduct or other policies addressing acceptable business practice, conflicts of interest, and expected standards of ethical and moral behavior? 2. Is the code distributed to all employees? X 3. Are all employees required to annually X acknowledge that they have read, understood, and complied with the code? 4. Does management demonstrate through X actions its own commitment to the code of conduct? 5. Are dealings with clients and other X constituents, customers, suppliers, employees, and other parties based on honesty and fair business practices? 6. Does management take appropriate action X in response to violations of the code of conduct?
Internal Control: A Tool for the Audit Committee
Not Control Environment—Tone at the Top Yes No Sure Comments Integrity and Ethical Values (cont.) 7. Is management explicitly prohibited from X Management documents overriding established controls? What any minor exceptions controls are in place to provide reasonable to policies. assurance that controls are not overridden
by management? Are deviations from this policy investigated and documented? Are violations (if any) and the results of investigations brought to the attention of the audit committee? 8. Is the organization proactive in reducing X fraud opportunities by (1) identifying and measuring fraud risks, (2) taking steps to mitigate identified risks, (3) identifying a position within the organization to “own” the fraud prevention program, and (4) implementing and monitoring appropriate preventative and detective internal controls and other deterrent measures? 9. Does the organization use an anonymous X ethics and fraud hotline and, if so, are procedures in place to investigate and report results to the audit committee? (See also the tool “Sample Whistle-Blower Tracking Report,” in this toolkit.) Commitment to Competence 1. Are the level of competence and the requisite X knowledge and skills defined for each job in the accounting and internal audit departments? 2. Does management make an effort to X determine whether the accounting and internal audit departments have adequate knowledge and skills to do their jobs? (continued)
Copyright © 2010. AICPA Inc. All Rights Reserved. 87 Permission is granted to download the tools and tailor or customize for internal use.
Not Control Environment—Tone at the Top Yes No Sure Comments Board of Directors and/or Audit Committee 1. Are the audit committee’s responsibilities X defined in a charter? If so, is the charter updated annually and approved by the board of directors? (See also the tool “Audit Committee Charter Matrix,” in this toolkit.) 2. Are audit committee members independent X of the organization and of management? Do audit committee members have the knowledge, industry experience, and financial expertise to serve effectively in their role? 3. Are a sufficient number of meetings held, X and are the meetings of sufficient length and depth to cover the agenda and provide healthy discussion of issues? 4. Does the audit committee constructively X Foundation and Housing challenge management’s planned decisions, budgets & financial particularly in the area of financial reporting, reports are reviewed and probe the evaluation of past results? quarterly. The Annual Budget, Audited Financial Statements, and 990 are reviewed by the committee and presented & approved by the full Board each year. 5. Are regular meetings held between the X audit committee and the CFO, the chief audit executive (internal audit), other key members of the financial management and reporting team, and the external auditors? Are executive sessions conducted on a regular basis? (See also the tool “Conducting an Audit Committee Executive Session: Guidelines and Questions,” in this toolkit.) 6. Does the audit committee approve internal X BOT approves internal audit’s annual audit plan? audits plan 7. Does the audit committee receive key X Generally 7 – 10 days in information from management in sufficient advance. time in advance of meetings to prepare for discussions at the meetings?
Internal Control: A Tool for the Audit Committee
Not Control Environment—Tone at the Top Yes No Sure Comments Board of Directors and/or Audit Committee (cont.) 8. Does a process exist for informing audit X committee members about significant issues on a timely basis and in a manner conducive to the audit committee having a full understanding of the issues and their implications? (See also the tool “Significant Issues, Estimates, and Judgments: Management’s Report to the Audit Committee” in this toolkit.) 9. Is the audit committee informed about X personnel turnover in key functions including the audit team (both internal and the external auditors), senior executives, and key personnel in the financial accounting and reporting teams? Are unusual employee turnover situations observed for patterns or other indicators of problems? Management’s Philosophy and Operating Style 1. Is the accounting department viewed as a X team of competent professionals bringing information, order, and controls to decision- making? 2. Is the selection of accounting practices X made in the long-term best interest of the organization (as opposed to short-term benefits)? 3. Are assets, including intellectual assets, X protected from unauthorized access and use? 4. Do managers respond appropriately to X unfavorable signals and reports? 5. Are estimates and budgets reasonable and X achievable? (continued)
Copyright © 2010. AICPA Inc. All Rights Reserved. 89 Permission is granted to download the tools and tailor or customize for internal use.
Not Control Environment—Tone at the Top Yes No Sure Comments Organizational Structure 1. Is the organizational structure within the X accounting function and the internal audit function appropriate for the size of the organization? 2. Are key managers in the accounting and X internal audit functions given adequate definition of their responsibilities? 3. Do sufficient numbers of employees exist, X particularly at the management levels in the accounting and internal audit functions, to allow those individuals to effectively carry out their responsibilities? Assignment of Authority and Responsibility 1. Is the authority delegated appropriate for the X responsibilities assigned? 2. Are job descriptions in place for management X and supervisory personnel in the accounting and internal audit functions? 3. Do senior managers get involved as needed X to provide direction, address issues, correct problems, and implement improvements? Human Resources Policies and Practices 1. Are policies and procedures in place for X The Foundation follows hiring, training, promoting, and compensating UWF HR policies. employees in the accounting and internal audit functions? 2. Do employees understand that sub-standard X performance will result in remedial action? 3. Is remedial or corrective action taken in X response to departures from approved policies? 4. Do employees understand the performance X criteria necessary for promotions and salary increases?
Internal Control: A Tool for the Audit Committee
Not Control Environment—Tone at the Top Yes No Sure Comments Risk Assessment 1. Has the organization conducted a systematic X assessment of the risk of failure in its internal control environment and identified the likely areas of weakness? (See the “Enterprise Risk Management—The COSO Framework: A Primer and Tool for the Audit Committee” in this toolkit.) 2. Does the organization consider risks from X external sources such as creditor demands, economic conditions, regulation, or labor relations? 3. Does the organization consider risks from X internal sources such as cash management, investment management and documentation, information systems security, and backup systems? 4. Is the risk of a misstatement of the financial X statements considered, and are steps taken to mitigate that risk? 5. If applicable, are the risks associated with X foreign and offshore operations considered, including their impact on the financial reporting process? Control Activities 1. Does the organization have a process in X We have multiple policies place to ensure that controls as described and procedures. in its policy and procedures manuals Processes are are applied as they are meant to be reviewed at least applied? Do the policy and procedures annually and the manuals document all important policies written procedures and procedures? Are these policies and updated if necessary. procedures reviewed and updated on a Board policies are regular basis? If so, by whom? updated as required. 2. Do supervisory personnel review the X Review is incorporated functioning of controls? If so, how is that into controls and review conducted and how are the results effectiveness is used? Is appropriate and timely follow-up monitored on a action taken on exceptions? continual basis. Function of controls also reviewed annually by auditors. (continued)
Copyright © 2010. AICPA Inc. All Rights Reserved. 91 Permission is granted to download the tools and tailor or customize for internal use.
Not Control Environment—Tone at the Top Yes No Sure Comments Information and Communication 1. Is a process in place to collect information X Management regularly from external sources, such as industry, receive & review economic, and regulatory information, that publications from could have an impact on the organization or AICPA, CASE, IRS, the financial reporting process, or both? etc., participate in list serves, attend various conferences (CASE, SUS FL Fnd) 2. Are milestones to achieve financial reporting X Monitor FL BOG requests objectives monitored to ensure that timing calendar, Foundation deadlines are met? calendar, University deadlines, etc. 3. Is necessary operational and financial X information communicated to the right people in the organization on a timely basis and in a format that facilitates its use, including new or changed policies and procedures? 4. Is a process in place to respond to new X information needs in the organization on a timely basis? 5. Is a process in place to collect and document X errors or complaints to analyze, determine cause, and prevent a problem from recurring in the future? 6. Is a process established and communicated X Employees are to officers, employees, and others, about encouraged to bring how to communicate suspected instances problems to the of wrongdoing by the organization or attention of others. employees of the organization? Further, does There is a link to the a process exist to ensure that anyone making whistleblower site on such a report is protected from retaliation the Foundation for making one? (See also the tool “Sample website. Whistle-Blower Tracking Report,” in this toolkit.) Monitoring 1. Do officers and employees understand X their obligation to communicate observed weaknesses in design or compliance with the internal control structure of the organization to the appropriate supervisory or management personnel?
Internal Control: A Tool for the Audit Committee
Not Control Environment—Tone at the Top Yes No Sure Comments Monitoring (cont.) 2. Are interactions with external stakeholders X periodically evaluated to determine if they are indicative of a weakness in the internal control structure? (For example, consider the frequency of complaints about incorrect invoices, statements, and acknowledgments.) 3. Is there follow-up on recommendations X from the internal and external auditors for improvements to the internal control system? 4. Are personnel required to sign off, indicating X their performance of critical control activities such as performing reconciliations? 5. Does the internal audit team have the right X number of competent and experienced staff? Do they have access to the board of directors and audit committee? Is the reporting structure in place to ensure their objectivity and independence? Is the work of the internal audit team appropriate to the organization’s needs, and prioritized with the audit committee’s direction?
Copyright © 2010. AICPA Inc. All Rights Reserved. 93 Permission is granted to download the tools and tailor or customize for internal use.
Fraud and the Responsibilities of the Audit Committee: An Overview
PURPOSE OF THIS TOOL: An audit committee should take an active role in the prevention and deterrence of fraud, as well as an effective ethics and compliance program. The audit committee should constantly challenge management and the auditors to ensure that the organization has appropriate antifraud programs and controls in place to identify potential fraud and ensure that investigations are undertaken if fraud is detected. The audit committee should take an interest in ensuring that appropriate action is taken against known perpetrators of fraud.
This tool is intended to make audit committee members aware of their responsibilities as they undertake this important role. This tool highlights areas of activity that may require additional scrutiny by the audit committee.
Fraud can be very costly to all types of organizations, including not-for-profit organizations. According to the Association of Certified Fraud Examiners (ACFE), U.S. organizations lose an estimated 7 percent of annual revenues to fraud.1 Their research also indicates that there is anecdotal evidence that fraud at not- for-profit organizations may be even higher. This is due to the fact that not-for-profit organizations are not implementing the most effective fraud controls, such as whistle-blower hotlines and management review of financial statements, and are focusing their resources on the least effective fraud controls. 2 The cost of fraud not only includes the financial cost, but also costs such as damage to the organization’s reputation, potential loss of donors or other resource providers, loss of management and board expertise, and many other nonfinancial costs.
Definition and Categories of Fraud An understanding of fraud is essential for the audit committee to carry out its responsibilities. The term fraud is defined in Black’s Law Dictionary (Sixth Edition, 1990) as
An intentional perversion of truth for the purpose of inducing another in reliance upon it to part with some valuable thing belonging to him or to surrender a legal right. A false representation of a matter of fact, whether by words or by conduct, by false or misleading allegations, or by concealment of that which should have been disclosed, which deceives and is intended to deceive another so that he shall act upon it to his legal injury … A generic term, embracing all multifarious means which human ingenuity can devise, and which are resorted to by one individual to get advantage over another by false suggestions or by suppression of truth, and includes all surprise, trick, cunning, dissembling, and any unfair way by which another is cheated.
1 Association of Certified Fraud Examiners (ACFE), 2008 Report to the Nation on Occupational Fraud and Abuse, Austin, TX: ACFE, 2008, p 8. 2 ACFE, 2008 Report to the Nation on Occupational Fraud and Abuse, Austin, TX: ACFE, 2008, p 40.
Copyright © 2010. AICPA Inc. All Rights Reserved. 95 Permission is granted to download the tools and tailor or customize for internal use. The AICPA Audit Committee Toolkit: Not-for-Profit Organizations
The ACFE defines occupational fraud as
The use of one’s occupation for personal enrichment through deliberate misuse or misapplication of the employing organization’s resources or assets3
The audit committee also needs to be aware that fraud affecting the organization often falls within one of the following three categories:
Management fraud, which involves senior management’s intentional misrepresentation of financial statements, or theft or improper use of an organization’s resources. Employee fraud, which involves nonsenior employee theft or improper use of an organization’s resources. External fraud, which involves theft or improper use of resources by people who are neither management, nor employees of the firm.
This categorization of fraud is useful, but not absolute. Middle management employees may intentionally misrepresent financial statement transactions, for example, to improve their apparent performance, or outside individuals may collude with organization management or employees.
Roles of the Audit Committee in the Prevention, Deterrence, Investigation, and Discovery or Detection of Fraud The members of the audit committee should understand their role of ensuring that the organization has antifraud programs and controls in place to help prevent fraud, and aid in its discovery if it does occur, to properly fulfill their fiduciary duties of the following:
1. Monitoring the financial reporting process 2. Monitoring the internal control system 3. Overseeing the external audit and internal audit functions 4. Reporting findings to the board of directors 5. Monitoring and overseeing the whistle-blower policy and hotline
Guidance to boards of directors and trustees, audit committees, and management to help prevent, deter, and detect fraud is contained in the AICPA’s Antifraud & Corporate Responsibility Resource Center available at www.aicpa.org/antifraud/homepage.htm. The information contained in the center can be viewed from different user perspectives for a personalized focus on the issues.
Not-for-profit organizations can use the specific requirements for audit committees as outlined in the Sarbanes-Oxley Act and the Securities and Exchange Commission rules as a guide. The requirements can be obtained from the AICPA Web site at www.aicpa.org/sarbanes/index.asp.
The audit committee should ensure that the organization has implemented an effective ethics and compliance program, and that it is periodically tested. Because the occurrence of significant frauds can frequently be attributed to an override of internal controls, the audit committee plays an important role to ensure that internal controls address the appropriate risk areas and are functioning as designed.
3 ACFE, 2008 Report to the Nation on Occupational Fraud and Abuse, Austin, TX: ACFE, 2008, p 6.
96 Copyright © 2010. AICPA Inc. All Rights Reserved. Permission is granted to download the tools and tailor or customize for internal use.
Fraud and the Responsibilities of the Audit Committee: An Overview
Internal auditors and external auditors can serve a vital role in aiding in fraud prevention and deterrence. Internal audit staff and external auditors that are experienced and trained in fraud prevention and deterrence can help to provide assurance that (1) risks are effectively identified and monitored, (2) organizational processes are effectively controlled and tested periodically, and (3) appropriate follow-up action is taken to address control weaknesses. The audit committee needs to ensure that internal and external auditors are carrying out their responsibilities in connection with potential fraud.
Whistle-Blowers According to the ACFE, the most effective method for detection of fraud has historically been tips.4 In many cases, these tips are obtained through the use of whistle-blower policies and hotlines. Not-for-profit organizations must establish procedures for the receipt, retention, and treatment of complaints received by the organization regarding accounting, internal accounting controls, or auditing matters; and the confidential, anonymous submission by employees of the organization of concerns regarding questionable accounting or auditing matters (see Sarbanes-Oxley Act of 2002, Title III, Section 301.) In many organizations, the audit committee is significantly involved monitoring the whistle-blower process. The audit committee chair or the entire committee may be involved in the primary investigation and review of the whistle-blower complaints and reporting. In addition, some organizations have designated the audit committee chair or an audit committee member as the individual who initially receives whistle-blower reports. See also the “Sample Whistle-Blower Tracking Report” in this toolkit.
When Fraud Is Discovered Fraud can be discovered through many sources, namely, internal or external auditors, forensic accounting consultants, employees, vendors, and others. Establishing a confidential hotline can also be an important source of information leading to fraud discovery, as part of an organization’s overall ethics, compliance, and fraud prevention program. Although a confidential hotline is something that could be accomplished internally, a variety of outside service providers can be engaged to provide this service for the organization.
If fraud or improprieties are asserted or discovered, the audit committee—through the external auditors, internal auditors, or forensic accounting consultants, as appropriate—should investigate, and, if necessary, retain legal counsel to assert claims on the organization’s behalf. Forensic accounting consultants, in particular, may be needed to provide the depth of skills necessary to conduct a fraud investigation and, if it is desirable, to get an external assessment.
If fraud is discovered or there is a reasonable basis to believe that fraud may have occurred, the audit committee is responsible for ensuring that an investigation is undertaken. Criteria should be in place describing the audit committee’s level of involvement, based on the severity of the offense. Most audit committees will also want to obtain information about all violations of the law and the organization’s policies.
Forensic accounting consultants can also frequently provide audit committees with other related advisory services, namely, (1) evaluations of controls designs and operating effectiveness through compliance verification, (2) creation of special investigations units , (3) incident management committees, (4) disclosure risk controls, (5) ethics hotlines, (6) code of conduct, and other antifraud measures.
The audit committee can engage the audit firm to carry out a forensic or fraud investigation. If CPA forensic accountants are engaged by the organization’s general counsel, rather than the audit committee, they may potentially attain attorney-client privilege status, not otherwise available under normal circumstances.
4 ACFE, 2008 Report to the Nation on Occupational Fraud and Abuse, Austin, TX: ACFE, 2008, p 20.
Copyright © 2010. AICPA Inc. All Rights Reserved. 97 Permission is granted to download the tools and tailor or customize for internal use. The AICPA Audit Committee Toolkit: Not-for-Profit Organizations
Expertise of Forensic Accounting Consultants In some situations, it may be necessary for an organization to look beyond the external audit team for expertise in the fraud area. In such cases, forensic accounting consultants can provide additional assurance or advanced expertise because they have special training and experience in fraud prevention, deterrence, investigation, and detection. Forensic accounting consultants may also provide fresh insights into the organization’s operations, control systems, and risks. The work of forensic accounting consultants may also provide comfort for the organization’s CEO and CFO. Forensic accounting consultants, however, cannot act as an insurer to prevent or detect fraud.
Many forensic accountants have obtained specific training in the identification and detection of fraud and may have additional designations such as certified fraud examiner. More information about certified fraud examiners may be located at the Web site for the ACFE at www.acfe.com
Conclusion The public is demanding greater vigilance from all parties involved in organizational governance, thus increasing the need to fight fraud. Audit committees are required to play a pivotal role in the prevention and deterrence of fraud, and to take appropriate action in the discovery of fraud. External public accountants, hired by audit committees, and internal auditors will continue to play an important part in the process. Forensic accounting consultants have emerged, however, as vital, newly recognized allies. Qualified forensic accounting consultants have the education, training, and experience to provide additional assistance to audit committees so they may better carry out their fiduciary responsibilities in the fight against fraud.
98 Copyright © 2010. AICPA Inc. All Rights Reserved. Permission is granted to download the tools and tailor or customize for internal use.
Nominating Committee Reports Nominating Committee Charge – 2020
Each year the Nominating Committee is charged with nominating “Directors as well as the officers of the Foundation. All such nominations are to be advanced to the President of the Foundation thirty (30) days prior to the Board’s June meeting.” Pursuant to the Bylaws, “The number of Elected Directors must be no fewer than five (5) or more than twenty-two.” Ten are elected upon nomination of the University President, ten are elected by the other members of the Board of Directors, and the remaining two are elected upon nomination by the Alumni Association.
Process: In accordance with the Bylaws, “the Nominating Committee shall consist of no fewer than six (6) Directors with the Foundation’s Immediate Past Chair acting as the Chair. The Nominating Committee shall meet and nominate Directors as well as the officers of the Foundation. All such nominations are to be advanced to the President of the Foundation thirty (30) days prior to the Board’s June meeting.”
Committee members review the Board Member Position Description and consider potential names they would be willing to recommend for service. Staff may also provide potential names for Committee consideration. Once a list of potential members is agreed upon, Nominating Committee members or the Foundation President will follow-up with the nominees to gage their interest in serving. In this process, the potential Board members should be provided with a copy of the Board Member Position Description, and their interest in serving on the Board would be assessed.
At the May meeting, the Nominating Committee will consider and vote on which names to put forward for membership at the June meeting of the full Board of Directors.
Officer and Committee Assignments: Upon consideration of the experience, qualifications, and preferences of Board members, the Chair of the Foundation Board, in consultation with the President of the Foundation and the Foundation CFO, will make committee assignments for each year. Officers are recommended by the Nominating Committee each year at the June meeting for approval by vote of the full Board.
Summary of Board Composition:
As of June 30, 2020, the Board will have the following open positions.
Presidential Appointments
President Saunders has 2 Board positions to fill and 3 will be up for reappointment.
Rick Byars Eligible for reappointment Full 4-year term (7/1/20 - 6/30/2024) John Gormley Eligible for reappointment Full 4-year term (7/1/20 - 6/30/2024) Todd Zaborski Eligible for reappointment Full 4-year term (7/1/20 - 6/30/2024)
David Hightower Not eligible for reappointment Full 4-year term (7/1/20 - 6/30/2024) Gordon Sprague Not eligible for reappointment Full 4-year term (7/1/20 - 6/30/2024)
Resulting Composition of the Board 10 positions appointed by the Board 10 positions appointed by the President 2 positions appointed by the Alumni Association
Officers:
• Chair – Gail Dorsey currently holds this position and is in her second year of a two-year term. • Vice Chair – Jason Crawford currently holds this position and was appointed by Chair Gail Dorsey. He is in his second year of his two-year term. • Secretary – John Gormley currently holds this position. He is in his first year of his first two-year term. • Treasurer – David Hightower currently holds this position. He is completing the second year of his second two-year term and will roll off the Board on 06/30/20. • Immediate Past Chair –Gordon Sprague currently holds this position. He is completing the second year of his two-year term and will roll off the Board on 06/30/20.
Terms of office:
Chair and Vice Chair – shall be two years or until a successor is chosen and qualifies.
Secretary and Treasurer – shall be within the limits of the term of their appointment and is two years or until a successor is chosen and qualifies.
Other Business
UWF Foundation, Inc. Board Calendar FY19-20 updated 10.01.19 - lfm Date: 2019-2020 Meeting Time Location Attendees August 08, Thursday Board Orientation Workshop 8:30 a.m. – 10:30 a.m. Bldg. 12 Alumni Conf. Rm. New Board Members August 29, Thursday Investment Manager Breakfast 7:30 a.m. – 9:00 a.m. Pensacola Yacht Club All invited August 29, Thursday Investment Committee 9:30 a.m. – 12:00 p.m. UWF’s Global Online Bldg. Committee Member August 29, Thursday Audit / Budget Committee 2:00 p.m. – 3:15 p.m. 630 E. Government Street Committee Member & Requested August 29, Thursday Executive Committee 3:30 p.m. – 5:00 p.m. Committee Member September 18, Wed Board of Directors Meeting 3:30 p.m. – 5:00 p.m. UWF Bldg 70 “Applied All Board Members & Requested *UWF Main Campus, Bldg 70* Science & Technology” Classroom
November 14, Thursday Donor Dinner 5:30 p.m. – 9:00 p.m. Sanders Beach – C. Jones All invited
November 14, Thursday Grant Committee Meeting 10:00 a.m.- 12:00 p.m. UWF Bldg. 12 Conf. Rm. Committee Member & Requested November 21, Thursday Investment Managers Breakfast 7:30 – 9 a.m. Pensacola Yacht Club All invited November 21, Thursday Investment Committee 9:30 a.m. – 12:00 p.m. Committee Member November 21, Thursday Nominating Committee 1:15 p.m. – 2:00 p.m. UWF’s Global Online Bldg. Committee Member November 21, Thursday Audit / Budget Committee 2:00 p.m. – 3:15 p.m. 630 E. Government Street Committee Member & Requested November 21, Thursday Executive Committee 3:30 p.m. – 5:00 p.m. Committee Member
December 4, Wed. Board of Directors Meeting 3:30 p.m. – 5:00 p.m. UWF Building 70 Classroom All Board Members & Requested
December 12, Thursday UWF 2019 Holiday Fest 5:30 – 7:30 p.m. PNS Historic Village All invited December 14, Saturday Fall 2019 Commencement 9:30 a.m. – 7 p.m. PNS Bay Center All invited to three ceremonies March 5, Thursday Investment Manager Breakfast 7:30 – 9:00 a.m. Skopelos at New World All invited March 5, Thursday Investment Committee 9:30 a.m. – 12:00 p.m. Committee Member March 5, Thursday Nominating Committee 1:15 p.m. – 2:00 p.m. UWF’s Global Online Bldg. Committee Member March 5, Thursday Audit / Budget Committee 2:00 p.m. – 3:15 p.m. 630 E. Government Street Committee Member & Requested March 5, Thursday Executive Committee 3:30 p.m. – 5:00 p.m. Committee Member TBA Grant Committee Meeting TBA UWF Bldg. 12 Conf. Rm. Committee Member & Requested March 17, Tuesday Board of Directors Meeting 3:30 p.m. – 5:00 p.m. UWF Building 70 Classroom All Board Members & Requested
May 2, Saturday Spring 2020 Commencement 9:30 a.m. – 7 p.m. PNS Bay Center All invited to three ceremonies May 14, Thursday Investment Managers Breakfast 7:30 a.m. – 9:30 a.m. Pensacola Yacht Club All invited May 14, Thursday Investment Committee 9:30 a.m. – 12:00 p.m. Committee Member May 14, Thursday Nominating Committee 1:00 p.m. – 2:00 p.m. UWF’s Global Online Bldg. Committee Member May 14, Thursday Audit / Budget Committee 2:00 p.m. – 3:15 p.m. 630 E. Government Street Committee Member & Requested May 14, Thursday Executive Committee 3:30 p.m. – 5:00 p.m. Committee Member June 17, Wednesday Board of Directors Meeting 3:30 p.m. – 5:00 p.m. UWF Building 70 Classroom All Board Members & Requested O:uwffoundation/FOUNDATION-Board Stuff/Calendars UWF Events and Happenings Updated: 11/15/19 LFM
December 2019
5 Radio Live 6:00 p.m. Museum of Commerce
8 Lunch and a Show: A Christmas Carol, UWF Center for Fine and Performing Arts Lunch 1:00 p.m. and matinee at 2:30 p.m. (Ticket purchase is required) uwf.edu/alumni
12 UWF Holiday Fest* 5:30 – 7:00 p.m. UWF Historic Trust Museum Plaza
14 Fall 2019 Commencement 9:30 a.m. – 7:00 p.m. Pensacola Bay Center
23 WUWF Holiday Concerts: Tidings of Comfort & Joy 6:00 p.m. and 8:00 p.m. First United Methodist Church
*Denotes committee members presence requested