City of Miami General Employees and Sanitation Employees - PowerPoint PPT Presentation

City of Miami General Employees’ and Sanitation Employees’ Retirement Trust Q4 2016

Experienced Firm that Partners with Clients to Provide Investment Solutions Experience  More than 25 years of institutionally-focused investment management across equities and fixed income  Total of 38 employees with an average professional-level tenure at Chicago Equity Partners of 16 years  $9.0 billion in assets under management for 96 institutional clients around the world Discipline  Focus on clearly-defined and process-oriented strategies which are repeatable and scalable  Deliberate approach to taking investment risks for which we believe our clients will be appropriately compensated  Long-standing commitment to continued innovation in our investment approach Partnership  Entire business platform built around delivering targeted solutions for sophisticated investors: we work with our clients to meet their investment objectives  Exceptional level of client service  Robust operational platform following industry best practices is the cornerstone of our long-term stability As of December 31, 2016. FIRM OVERVIEW PHILOSOPHY INVESTMENT PERFORMANCE BOND MARKET INVESTMENT PORTFOLIO APPENDIX 2 & PROCESS GUIDELINES RESULTS REVIEW STRATEGY REVIEW

Clients are Our Top Priority Corporations • Northwest Women’s Religious Investment Trust • Public School Retirement System of the City of St. • AAA Allied Group, Inc. • Oklahoma Medical Research Foundation Louis • Advocate Health Care • Purdue University • Retirement Plan for CTA Employees • Bryan Health System • Regents of the University of Colorado • State Universities Retirement System of Illinois • Consolidated Edison • Rush University Medical Center • WorkSafeNB • DTE Energy • Schoenstatt Sisters of Mary • Island Insurance Company, Ltd. Taft-Hartley • Sisters of Charity of Saint Elizabeth New Jersey • Marriott International, Inc. • Sisters of St. Casimir • NAMIC (National Association of Mutual Insurance • Sisters of Saint Dominic • Bakery Drivers & Salesman Local 194 Companies) • Sisters of Saint Francis of Assisi & Industry Pension Fund • Sherwin Williams Company • Smith Center for the Performing Arts • Chicago Area I.B. Of T. Benefit Trust Funds • Tempel Steel • SSM International Finance • Chicago Regional Council of Carpenters Millmen • ThedaCare Operating Fund • St. Procopius Abbey Pension Fund • United Airlines • Virginia Mennonite Retirement Community • Des Moines Iron Workers Local 67 • United Technologies Corporation • Wallace H. Coulter Foundation • District #9 I.A.M.A.W. Pension Trust • University Hospitals Health System • Midwest Operating Engineers’ Welfare Fund • Walgreen Company • North Central Illinois Laborers Health & Welfare Fund • Wooster Brush Company Public Funds • NYC Local 237 International Brotherhood of Teamsters • Association of Washington Cities • Painters and Allied Trades District Council #35 Trust Endowments & Foundations • California State Teachers’ Retirement System Funds • Chicago Housing Authority • Southern States Savings and Retirement Plan Trust • Batchelor Foundation • City of Miami General Employees' and Sanitation • Teamsters Local #705 Pension and • Catholic Theological Union Employees' Retirement Trust Health & Welfare Funds • Children’s Care Foundation • City of Springfield Police Pension Fund • Uniformed Firefighter's Association (NYC) • Diocese of Joliet • Commonwealth of Massachusetts Deferred • Diocese of St. Petersburgh Compensation Plan • Dominican Sisters of Kenosha • Cook County Employees’ Annuity and Benefit Fund • Elks National Foundation • Firemen’s Annuity and Benefit Fund of Chicago Mutual Funds / Subadvisory • Friends Fiduciary Corporation • Intergovernmental Risk Management Agency • Gottlieb Memorial Foundation • Knox County Retirement System • AMG Funds • Hall-Perrine Foundation • Lake Forest Police Pension Fund • Bank of Hawaii • Iowa Board of Regents • Los Angeles Fire & Police Pension System • Jackson National Asset Management, LLC • LaRabida Children’s Hospital • Nevada Higher Education Pre-paid Tuition Program • Lloyd A. Fry Foundation • Nevada State Treasurer • Mennonite Education Agency • New Orleans (LA) Sewerage & Water Board Pension • Misericordia Home Endowment • Park Employees' Annuity & Benefit Fund of Chicago The above client list is a representative sample of clients with assets • Missionary Servants of the Most Blessed Trinity of $5 million or greater under management who have given CEP • Moose Foundation permission to use their name as of December 31, 2016. It is not known whether the listed clients approve or disapprove of Chicago Equity Partners or the advisory services provided. FIRM OVERVIEW PHILOSOPHY INVESTMENT PERFORMANCE BOND MARKET INVESTMENT PORTFOLIO APPENDIX 3 & PROCESS GUIDELINES RESULTS REVIEW STRATEGY REVIEW

CEP Fixed Income Team CEP’s Fixed Income team employs an accomplished team of industry leading investment professionals who have spent an average of 16 years working together. FIXED INCOME QUANTITATIVE INDUSTRY TEAM RESEARCH ANALYSTS Portfolio management Model research and development Company specific analysis    Risk control Study academic and industry trends Industry specific analysis    Ye ars with Ye ars in Ye ars with Ye ars in Ye ars with Ye ars in Firm I ndustry Firm I ndustry Firm I ndustry 13 31 20 27 27 30 Curt Mitc he ll, CF A Ke ith Gusta fso n, CFA Ro be rt Kra me r, CFA, CPA Partner, CIO - Fixed Income Partner Founder 27 37 12 23 19 28 Mic ha e l Budd Ge o rg e Ga o , CFA Mic ha e l L a wre nc e , CFA Managing Director Director Director 7 14 5 6 23 23 Christo phe r Ashbe e , CFA, FRM Abha y Muno t, CFA Ma rtin Mo rris, CFA Director Director Director 2 21 23 26 F e ng Zha o , PhD, CFA, FRM Willia m Murra y, CFA, CAIA Director Director 11 36 25 33 T ina Kra usko pf Ja me s Pa le rmo , CFA Director Director 7 27 Ke nny Kwa n Associate Ave ra g e Ye a rs with Firm = 16 Ave ra g e Ye a rs in Industry = 26 December 31, 2016 FIRM OVERVIEW PHILOSOPHY INVESTMENT PERFORMANCE BOND MARKET INVESTMENT PORTFOLIO APPENDIX 4 & PROCESS GUIDELINES RESULTS REVIEW STRATEGY REVIEW

Fixed Income Investment Philosophy We believe the role of fixed income is to provide principal preservation, income, and risk reduction through diversification. Our Core Beliefs  Yie ld wins o ve r time , but no t all the time . Our rigorous research allows us to add value through sector allocation by identifying when we are being appropriately compensated for taking credit risk.  Change s in fundame ntals drive se c urity se le c tio n re turns. The analysis of forward-looking measures of credit quality allows us to identify companies that we believe will outperform and avoid those that will underperform.  Risk manage me nt is c ritic al to suc c e ss. Minimizing downside risk and avoiding permanent loss of principal are primary goals. Outcomes  Our research-oriented and disciplined investment process focuses on fundamentals and valuations.  A countercyclical, value-driven approach produces excess returns primarily through sector allocation and security selection rather than a static overweight to risky positions or interest rate timing.  Returns are highly correlated to the overall bond market, but excess returns are generally often lowly or negatively correlated to bond manager peers. T his philosophy is the founda tion of our inve stme nt pr oc e ss a nd ma ke s our fir m unique . FIRM OVERVIEW PHILOSOPHY INVESTMENT PERFORMANCE BOND MARKET INVESTMENT PORTFOLIO APPENDIX 5 & PROCESS GUIDELINES RESULTS REVIEW STRATEGY REVIEW

Fixed Income Investment Process We combine multiple strategies in areas where we have repeatedly demonstrated skill to produce consistent results. Sector Security 2 1 Allocation Selection TOP DOWN BOTTOM UP Sector and quality decisions Security and industry selection research combines quantitative incorporate fundamental, valuation, STRUCTURED and momentum / sentiment market equity-based inputs with qualitative insight from analysts. conditions. AND DISCIPLINED Risk Management 3 DOWNSIDE PROTECTION Risk-budgeting framework measures magnitude of each excess return strategy on a forward-looking basis, while attribution provides real-time feedback. Our inve stme nt pr oc e ss pr oduc e s c onsiste nt r e tur ns while limiting r isk. FIRM OVERVIEW PHILOSOPHY INVESTMENT PERFORMANCE BOND MARKET INVESTMENT PORTFOLIO APPENDIX 6 & PROCESS GUIDELINES RESULTS REVIEW STRATEGY REVIEW