BAY COUNTY RETIREMENT BOARD OF TRUSTEES AGENDA TUESDAY, SEPTEMBER 11, 2018 @ 1:30 P.M. COMMISSIONERS CHAMBERS 515 CENTER AVENUE - 4 TH FLOOR BAY CITY, MI 48708 PAGE I. CALL TO ORDER II. ROLL CALL III. MINUTES 1 – 8 . . . . . . . A. AUGUST 14, 2018 (APPROVE) IV. PUBLIC INPUT V. PETITIONS & COMMUNICATIONS 9 - 11. . . . . . . . . . . . . . . A. MONTHLY REPORTS – RES NO: 2018-24 1. PORTFOLIO VALUE - 1/1/18 - 8/31/18 2. CHANGE IN NET ASSETS – 8/31/18 3. MONEY MANAGERS ON WATCH - (EFFECTIVE DATE) a. NONE 4. MONEY MANAGER REPORTS a. BARINGS – ENDING 7/31/18 b. COLUMBIA – ENDING 7/31/18 c. EAGLE ASSET MGMT - ENDING 7/31/18 12 - 36 . . . . . . . . . . . . . . . d. GENEVA – ENDING 7/31/18 e. LOOMIS SAYLES - ENDING 7/31/18 f. MACKAY SHIELDS – ENDING 7/31/18 g. MFS INVESTMENT REPORTS – ENDING 7/31/18 h. MFS HERITAGE TRUST REPORTS - ENDING 7/31/18 i. PRISA – 2Q 2018, PRISA LP FS 2Q2018 (AVALABLE UPON REQUEST), PRISA UHC CONSOLIDATED FS 2Q 2018 (AVAILABLE UPON REQUEST) 5. RECAPTURE SERVICES 37 - 40 . . . . . . . . . . . . . . . . . a. ABEL/NOSER - SUMMARY ENDING 7/31/18 b. CAPIS - SUMMARY ENDING 7/31/18 6. COMERICA 41 – 56 . . . . . . a. SUMMARY EARNINGS - ENDING 7/31/18 57. . . . . . . . . . . . . . . . . . . 7. REFUNDS/RETIREMENTS ENDING 8/31/18
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BAY COUNTY RETIREMENT BOARD OF TRUSTEES AGENDA … · 2018-09-11 · equities financials common stock unum group 91529y106 unm us91529y1064 20,500 475,024 39.73 5,330 814,465 339,441
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PERFORMANCE HISTORYBay County Employees' Retirement SystemU.S. REIT Strategy
Percent Total ReturnPer Period
Time Period 7/31/2018 FTSE/NAREITGross Net Equity REIT Index
1 Month 1.15% 1.10% 0.80%
YTD 1.31% 0.95% 1.83%
1 Year 3.97% 3.35% 3.07%
3 Year 6.18% 5.54% 6.39%
5 Year 9.47% 8.82% 8.28%
Inception (October 21, 2008) 13.40% 12.72% 12.01%
Portfolio
12
Columbia Management Investment Advisers Page 1
DATE PRINTED: 08/10/2018 C o m m i s s i o n T o t a l s b y C l i e n t
FROM 07/01/2018 TO 07/31/2018
VALUATION CURRENCY: USD
CLIENT ID CLIENT NAME BROKER ID BRANCH NAME MONTH OF 07/2018 TOTAL
53D-E BAY COUNTY EMPLOYEES RETIREMENT SYSTEM
13
Bay County Employees Retirement System
Portfolio performance as of July 31, 2018
Base Currency: USD
1 Inception Date: 01/27/2001
Source: Columbia Management Investment Advisers, LLC, Factset Past performance does not guarantee future results. Please refer to the Disclosures at the end of this presentation for more information.
EQUITIES UTILITIES COMMON STOCK NEXTERA ENERGY INC 65339F101 NEE US65339F1012 5,400 544,836 167.54 0 904,716 359,880 2.42%
TOTAL PORTFOLIO 21,417,873 43,561 37,437,427 16,019,554 100.00%
15
QTD 3
Years
5
Years
YTDAnnualized
Since
Inception
Performance Summary
MTD 1
Year
2.79
2.60
1.72
13.85
12.95
13.14
12.22
17.36
16.68
16.85
15.89
2.79
2.60
1.72 11.58RU20GRTR1
11.08 12.38 16.58
27.25
26.27
22.91
Gross
Net
1
Bay County Employees' Retirement System - 05231100
Investment period ending: 07/31/2018
Top Ten Holdings
% of Market ValueSecurity Description Total Market Value
QUAKER CHEMICAL CORP 3.83%402,838.26
CANADA GOOSE HOLDINGS INC 3.30%347,279.21
PLANET FITNESS INC - CL A 2.99%314,677.44
CHART INDUSTRIES INC 2.68%282,139.17
TREX COMPANY INC 2.38%250,556.02
REALPAGE INC 2.15%226,516.10
MSA SAFETY INC 1.93%202,667.92
CORNERSTONE ONDEMAND INC 1.88%197,550.60
EVOLENT HEALTH INC - A 1.86%195,455.20
FIRSTCASH INC 1.77%185,948.00
Currency Valuation: USD
Portfolio Style: SmallCap Growth Equity
Portfolio Summary
Month To Date Year To Date
Beginning Market Value
Contributions
Withdrawals
Dividend and Interest Income
Change in Market Value
Ending Market Value
10,227,586.14
0.00
0.00
5,210.02
280,475.42
10,513,271.58
10,064,781.50
0.00
1,200,026.98
31,838.71
1,616,678.35
10,513,271.58
Industry Weightings
Portfolio inception date: 09/02/2010
Page 2 of 1916
Time Weighted Return
Date to Date
12/31/2017 to 07/31/2018 10.67 11.60 7.66
Inception to Date
01/17/2013 to 07/31/2018 90.26 101.72 110.10
Annualized 12.32 13.52 14.36
Percent Return Per Period
Time Period Total EquitiesRussell Midcap
Growth Index
12/31/2017 to 01/31/2018 6.39 6.78 5.66
01/31/2018 to 02/28/2018 -2.49 -2.57 -3.14
02/28/2018 to 03/31/2018 0.52 0.54 -0.16
03/31/2018 to 04/30/2018 -1.26 -1.11 -0.94
04/30/2018 to 05/31/2018 4.23 4.34 3.74
05/31/2018 to 06/30/2018 0.62 0.64 0.39
06/30/2018 to 07/31/2018 2.48 2.74 2.15
Performance History
Geneva Capital Management
Bay County Employees' Retirement System XXXX2219 (bcers)
Performance History - YTDNet of Fees | US Dollar
7/31/201812/31/2017 -
717
Bay County Employees' Retirement System XXXX2219 (bcers)
Transaction Summary7/1/2018 - 7/31/2018
US Dollar
Purchases
Trade Date Settle Date Quantity SecurityUnit
Cost Total Cost
7/11/2018 7/13/2018 1,753 BEACON ROOFING SUPPLY INC COM 39.78 69,738.72
7/19/2018 7/23/2018 119 BURLINGTON STORES INC COM 156.43 18,614.58
7/19/2018 7/23/2018 185 BURLINGTON STORES INC COM 156.04 28,866.59
7/19/2018 7/23/2018 805 REALPAGE INC COM 59.62 47,994.66
7/19/2018 7/23/2018 176 TELEFLEX INC COM 277.85 48,901.04
7/24/2018 7/26/2018 249 COOPER COS INC COM NEW 252.53 62,879.40
7/24/2018 7/26/2018 547 WABCO HLDGS INC COM 120.48 65,901.85
Total Purchases 342,896.84
Sales
Trade Date Settle Date Quantity SecurityUnit
Cost Total CostUnit
Price Proceeds
7/24/2018 7/26/2018 1,591 AFFILIATED MANAGERS GROUP COM 122.37 194,689.23 152.02 241,859.40
7/24/2018 7/26/2018 1,007 MIDDLEBY CORP COM 76.75 77,284.59 100.03 100,733.32
7/24/2018 7/26/2018 1,268 MIDDLEBY CORP COM 76.75 97,315.66 99.92 126,703.88
7/24/2018 7/26/2018 1,617 SCHEIN HENRY INC COM 86.02 139,090.90 77.04 124,573.83
Total Sales 508,380.38 593,870.43
Geneva Capital Management
818
Bay
Cou
nty
Empl
oyee
s Ret
Sys
tem
performanceTRAILING RETURNS AS OF 7/31/2018 (%)
Excess Return(Gross)
PORTFOLIO VALUATION (USD)
Portfolio6/30/2018
Portfolio7/31/2018 Increase/Decrease
Total 39,485,422 39,843,487 358,065
Data Source: Barclays CapitalBenchmarks: FTSE Broad Inv-Grade (BIG) ( 1/31/1997 - 6/30/1999 ). BBG BARC Credit ( 6/30/1999 - 2/29/2012 ). BBG BARC U.S. Corporate Investment Grade ( 2/29/2012 -7/31/2018 ).The current benchmark is Bloomberg Barclays Corporate Index. Returns over one year are annualized. Information is reported on a trade date basis.* Net returns only available from 12/31/2000.
Sources: Loomis, Sayles & Company, L.P. and others For Institutional Investor Use Only. Not for Further Distribution July 31, 2018
219
Bay
Cou
nty
Empl
oyee
s Ret
Sys
tem
performanceCALENDAR YEAR RETURNS AS OF 7/31/2018 (%)
Excess Return(Gross)
Data Source: Barclays CapitalBenchmarks: FTSE Broad Inv-Grade (BIG) ( 1/31/1997 - 6/30/1999 ). BBG BARC Credit ( 6/30/1999 - 2/29/2012 ). BBG BARC U.S. Corporate Investment Grade ( 2/29/2012 -7/31/2018 ).The current benchmark is Bloomberg Barclays Corporate Index. Returns over one year are annualized. Information is reported on a trade date basis.
Sources: Loomis, Sayles & Company, L.P. and others For Institutional Investor Use Only. Not for Further Distribution July 31, 2018
320
Bay
Cou
nty
Empl
oyee
s Ret
Sys
tem
performance attribution by sector6/30/2018 TO 7/31/2018 (%)
TOTAL RETURNS
Total Return
Portfolio Return 0.91
Benchmark Return 0.83
Excess Return 0.08
Data Source: Barclays CapitalFigures on the bar chart may not add up to total excess return as they exclude impact of trading and pricing differences. Excess Return by sector excludes yield curve impact. Values shown include impact of hedgingif utilized. Unless otherwise noted, the performance shown is gross of management fees.The current benchmark is Bloomberg Barclays Corporate Index.
Sources: Loomis, Sayles & Company, L.P. and others For Institutional Investor Use Only. Not for Further Distribution July 31, 2018
421
3
Portfolio Composition and Performance — Account 1256July 31, 2018
BAY COUNTY EMPLOYEES RETIREMENT SYSTEM
Year
Annualized
Performance Latest Latest 3 To Latest 12 3 Years 5 Years Since Since
Month Months Date Months Annualized Annualized 10/1/2003 10/1/2003
Total Fund (Gross of fees) 1.58% 3.79% 7.32% 10.45% 9.05% 9.17% 180.84% 7.20%
Note: The Custom Benchmarks consists of the ICE BofAML All Convt (Inc Mand) since 8/31/15. Previously, it was the BofAML Convt Inv Grade Bds (Inc Mand) Index.
Past performance is not indicative of future results.
Composition Market Percent Value of Total
Fixed Income 12,009,976 84.38
Equity 1,598,784 11.23
Cash & Equivalents 624,004 4.38
Total Portfolio $14,232,765 100.00%
22
4
BAY COUNTY EMPLOYEES RETIREMENT SYSTEM
Portfolio Composition and Performance — Account 1256July 31, 2018
Year
Annualized
Performance Latest Latest 3 To Latest 12 3 Years 5 Years Since Since
Month Months Date Months Annualized Annualized 10/1/2003 10/1/2003
Total Fund (Net of fees) 1.54% 3.68% 7.04% 9.96% 8.57% 8.66% 161.25% 6.68%
Note: The Custom Benchmarks consists of the ICE BofAML All Convt (Inc Mand) since 8/31/15. Previously, it was the BofAML Convt Inv Grade Bds (Inc Mand) Index.
Past performance is not indicative of future results.
Net of fee performance is estimated. It is calculated by reducing the gross return by the portion of the management fee applicable to the period shown.
Composition Market Percent Value of Total
Fixed Income 12,009,976 84.38
Equity 1,598,784 11.23
Cash & Equivalents 624,004 4.38
Total Portfolio $14,232,765 100.00%
23
5
BAY COUNTY EMPLOYEES RETIREMENT SYSTEM
Summary Report — Account 1256July 31, 2018
Total Percent Yield Market Percent Yield Annual Cost at Cost at Cost Value of Assets at Market Income
This report contains trade date position values, calculated by MFS. This is not the official book of record for the account. Cash is a net cash balance comprised of cash on deposit, and payables and receivables that have not settled.
Page 1 of 1Run Date: 8/3/2018 9:42:09 PM
Bay County Employees' Retirement System - Growth Equity BCS
Performance results (%) gross and net of fees (USD)
Period Portfolio gross Portfolio net Benchmark^ Excess^^
July 1.94 1.89 2.94 -1.04
2Q 2018 6.67 6.52 5.76 0.77
1Q 2018 4.96 4.81 1.42 3.40
2018 YTD 14.14 13.76 10.40 3.36
1 year 23.88 23.18 22.84 0.33
3 year 14.99 14.33 14.81 -0.47
5 year 16.20 15.52 15.83 -0.31
Since client inception (04-Sep-12) 17.63 16.94 16.53 0.41
Source for benchmark performance SPAR, FactSet Research Systems Inc.
All periods greater than one year are annualized.
Past performance is no guarantee of future results.
^ Russell 1000® Growth Index
^^ Excess return net vs benchmark (%)
FOR EXISTING INSTITUTIONAL CLIENT USE ONLY.
MFS Institutional Advisors, Inc.
31016
26
Currency:
CUSIP/SEDOL Ticker Holding Name Price Shares Held Market Value (mm) Equivalent Exposure (mm) Market Value % Equivalent Exposure % Market Cap (mm) MFS Sector Global Sector GICS Sector MFS Industry MFS Country ISIN ID w/Check
711038 ROG SW Roche Holding AG 245.47 180,562 44,322,167.45 44,322,167.45 3.32 3.32 209,672.20 Health Care Health Care Health Care Pharmaceuticals Switzerland CH0012032048 7110388
484628 SAP GY SAP SE 116.76 357,009 41,684,227.14 41,684,227.14 3.12 3.12 143,439.67 Technology Technology Information Technology Computer Software Germany DE0007164600 4846288
B4TX8S 1299 HK AIA Group Ltd 8.73 4,578,000 39,952,987.94 39,952,987.94 2.99 2.99 105,391.50 Financial Services Financial Services Financials Insurance Hong Kong HK0000069689 B4TX8S1
G1151C10 ACN US Accenture PLC 159.33 243,358 38,774,230.14 38,774,230.14 2.90 2.90 102,112.84 Special Products & Services Technology Information Technology Business Services United States IE00B4BNMY34 G1151C101
405780 OR FP L'Oreal SA 244.98 144,384 35,371,022.67 35,371,022.67 2.65 2.65 137,740.63 Consumer Staples Consumer Staples Consumer Staples Consumer Products France FR0000120321 4057808
468232 RI FP Pernod Ricard SA 161.31 174,364 28,126,976.36 28,126,976.36 2.11 2.11 42,815.64 Consumer Staples Consumer Staples Consumer Staples Alcoholic Beverage France FR0000120693 4682329
506921 BAYN GY Bayer AG 111.39 238,810 26,601,590.63 26,601,590.63 1.99 1.99 103,879.11 Health Care Health Care Health Care Pharmaceuticals Germany DE000BAY0017 5069211
721247 EI FP Essilor International
Cie Generale
d'Optique SA
147.57 178,881 26,397,821.57 26,397,821.57 1.98 1.98 32,338.57 Health Care Health Care Health Care Medical Equipment France FR0000121667 7212477
187.23 139,412 26,102,108.76 26,102,108.76 1.95 1.95 481,083.37 Technology Technology Information Technology Internet China US01609W1027 01609W102
B5Q3JZ HDFCB IN HDFC Bank Ltd 31.78 812,951 25,833,555.63 25,833,555.63 1.93 1.93 83,996.04 Financial Services Financial Services Financials Other Banks and Diversified
Financials
India INE040A01026 B5Q3JZ5
710306 NOVN SW Novartis AG 84.07 300,903 25,296,334.62 25,296,334.62 1.89 1.89 214,426.18 Health Care Health Care Health Care Pharmaceuticals Switzerland CH0012005267 7103065
545831 AKZA NA Akzo Nobel NV 92.50 250,015 23,125,283.68 23,125,283.68 1.73 1.73 23,661.26 Basic Materials Capital Goods Materials Specialty Chemicals Netherlands NL0000009132 5458314
483410 SU FP Schneider Electric
SE
80.50 272,678 21,950,048.37 21,950,048.37 1.64 1.64 46,604.89 Industrial Goods & Services Capital Goods Industrials Electrical Equipment France FR0000121972 4834108
550507 KER FP Kering SA 533.22 39,814 21,229,764.41 21,229,764.41 1.59 1.59 67,335.10 Retailing Consumer Cyclicals Consumer Discretionary Apparel Manufacturers France FR0000121485 5505072
BRJL17 UBSG SW UBS Group AG 16.48 1,248,362 20,569,636.95 20,569,636.95 1.54 1.54 63,513.23 Financial Services Financial Services Financials Major Banks Switzerland CH0244767585 BRJL176
B3MSM2 AMS SM Amadeus IT Group
SA
85.36 235,053 20,064,723.47 20,064,723.47 1.50 1.50 37,459.03 Technology Technology Information Technology Computer Systems Spain ES0109067019 B3MSM28
B1YXBJ AI FP Air Liquide SA 128.04 150,017 19,208,750.50 19,208,750.50 1.44 1.44 54,837.47 Basic Materials Capital Goods Materials Specialty Chemicals France FR0000120073 B1YXBJ7
BYXS69 QIA GY QIAGEN NV 36.24 350,936 12,717,273.69 12,717,273.69 0.95 0.95 8,210.01 Health Care Health Care Health Care Medical Equipment Germany NL0012169213 BYXS699
665760 OSH AU Oil Search Ltd 6.67 1,892,183 12,624,060.29 12,624,060.29 0.95 0.95 10,165.21 Energy Energy Energy Energy - Independent Australia PG0008579883 6657604
688507 4543 JP Terumo Corp 54.82 230,000 12,609,220.59 12,609,220.59 0.94 0.94 20,819.50 Health Care Health Care Health Care Medical Equipment Japan JP3546800008 6885074
59268810 MTD US Mettler-Toledo
International Inc
592.51 21,188 12,554,101.88 12,554,101.88 0.94 0.94 14,939.55 Industrial Goods & Services Capital Goods Health Care Electrical Equipment United States US5926881054 592688105
642910 6501 JP Hitachi Ltd 6.96 1,795,000 12,499,101.19 12,499,101.19 0.94 0.94 33,656.86 Technology Technology Information Technology Computer Systems Japan JP3788600009 6429104
Novo Nordisk AS 49.93 213,736 10,670,784.60 10,670,784.60 0.80 0.80 122,016.94 Health Care Health Care Health Care Pharmaceuticals Denmark DK0060534915 BHC8X90
656039 035420 KS NAVER Corp 640.06 16,330 10,452,134.27 10,452,134.27 0.78 0.78 21,098.01 Technology Technology Information Technology Internet South Korea KR7035420009 6560393
B3NB1P SU CN Suncor Energy Inc 42.11 220,011 9,264,867.26 9,264,867.26 0.69 0.69 68,804.16 Energy Energy Energy Energy - Integrated Canada CA8672241079 B3NB1P2
653551 1193 HK China Resources
Gas Group Ltd
4.74 1,930,000 9,147,094.23 9,147,094.23 0.68 0.68 10,540.49 Utilities & Communications Energy Utilities Natural Gas Distribution China BMG2113B1081 6535517
438042 PUB FP Publicis Groupe SA 63.92 136,389 8,717,530.84 8,717,530.84 0.65 0.65 15,033.08 Leisure Consumer Cyclicals Consumer Discretionary Broadcasting France FR0000130577 4380429
223287 BAP US Credicorp Ltd 228.77 36,910 8,443,900.70 8,443,900.70 0.63 0.63 18,246.92 Financial Services Financial Services Financials Other Banks and Diversified
Financials
Peru BMG2519Y1084 2232878
B4R2R5 BAER SW Julius Baer Group
Ltd
54.98 148,002 8,137,382.09 8,137,382.09 0.61 0.61 12,305.40 Financial Services Financial Services Financials Other Banks and Diversified
316383 ITRK LN Intertek Group PLC 77.18 102,349 7,899,084.98 7,899,084.98 0.59 0.59 12,455.98 Special Products & Services Technology Industrials Business Services United Kingdom GB0031638363 3163836
B11ZRK LR FP Legrand SA 73.48 93,039 6,836,687.52 6,836,687.52 0.51 0.51 19,634.18 Industrial Goods & Services Capital Goods Industrials Electrical Equipment France FR0010307819 B11ZRK9
616150 CTX AU Caltex Australia Ltd 24.19 247,176 5,979,299.16 5,979,299.16 0.45 0.45 6,313.72 Energy Energy Energy Energy - Independent Australia AU000000CTX1 6161503
78.50 61,077 4,794,544.50 4,794,544.50 0.36 0.36 4,155.01 Technology Technology Information Technology Electronics United States IL0011017329 M51363113
451944 KOMB CP Komercni banka as 43.41 90,075 3,910,538.41 3,910,538.41 0.29 0.29 8,250.84 Financial Services Financial Services Financials Other Banks and Diversified
Financials
Czech Republic CZ0008019106 4519449
B7FNMQ EFN CN Element Fleet
Management Corp
4.81 625,318 3,009,179.14 3,009,179.14 0.23 0.23 1,830.35 Financial Services Financial Services Financials Other Banks and Diversified
Financials
Canada CA2861812014 B7FNMQ2
282239 GFINBURO Grupo Financiero
Inbursa SAB de CV
1.65 1,681,731 2,770,138.12 2,770,138.12 0.21 0.21 10,981.93 Financial Services Financial Services Financials Other Banks and Diversified
Financials
Mexico MXP370641013 2822398
B28XXH ADSEZ IN Adani Ports &
Special Economic
Zone Ltd
5.83 464,455 2,707,042.39 2,707,042.39 0.20 0.20 12,070.34 Transportation Capital Goods Industrials Railroad & Shipping India INE742F01042 B28XXH2
G5727910 LXFT US Luxoft Holding Inc 38.00 50,907 1,934,466.00 1,934,466.00 0.14 0.14 1,292.08 Technology Technology Information Technology Computer Systems United States VGG572791041 G57279104
Benchmark^PortfolioPerformance results (%) class 1 shares net of fees (USD) Excess returns
July 2018 1.722.74 1.02
2018 YTD -0.604.09 4.69
1 year 8.0413.62 5.58
3 year 7.079.91 2.84
Since client inception (06-Aug-14) 5.608.05 2.45
31 July 2018
Bay County Employees' Retirement SystemMFS® Heritage Trust Company CIT - MFS International Growth Fund
(Class 1 Shares)
MFS ® Heritage Trust Company CIT - MFS International Growth Fund
33470PSR-HTG–31-Jul-18
Source for benchmark performance SPAR, FactSet Research Systems Inc.
All periods greater than one year are annualized.Past performance is no guarantee of future results.
FOR EXISTING INSTITUTIONAL CLIENT USE ONLY.
MSCI All Country World (ex-US) Growth Index (net div)
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's
performance results would be less favorable. All results are historical and assume the reinvestment of dividends and capital gains.
Trailing 1 year turnover 22% –Trailing 1 year turnover 2
Risk profile (current)
Barra predicted tracking error 2.65% –Barra predicted tracking error 3
Risk/reward (since inception)
Information ratio 0.98 –Information ratio 4
Weighted median.
(Lesser of Purchase or Sales)/Average Month End Market Value
Source: Barra
Since inception, based on first full month of performance.
No forecasts can be guaranteed.
Portfolio characteristics are based on equivalent exposure, which measures how
a portfolio's value would change due to price changes in an asset held either
directly or, in the case of a derivative contract, indirectly. The market value of the
holding may differ.
MSCI All Country World (ex-US) Growth Index^^
^
1 Weighted median.2 (Lesser of Purchase or Sales)/Average Month End Market Value3 Source: Barra4 Since inception, based on first full month of performance.
130
FOR EXISTING INSTITUTIONAL CLIENT USE ONLY.
MFS Heritage Trust Company
31 July 2018
Bay County Employees' Retirement SystemMFS® Heritage Trust Company CIT - MFS International Growth Fund
(Class 1 Shares)
MFS ® Heritage Trust Company CIT - MFS International Growth Fund
Portfolio and benchmark data shown is based on MFS' sector/industry classification methodology, which differs from the benchmark's.
231
MFS HERITAGE TRUST COMPANY
Account Statement07/01/2018 - 07/31/2018
Page 1 of 2
Registration: BAY COUNTY EMPLOYEES’ RETIREMENT SYSTEM (BCERS)
Account Number: 193
193 BAY COUNTY EMPLOYEES’ RETIREMENT SYSTEM
IDXA00041 3BAY COUNTY EMPLOYEES’ RETIREMENT SYSTEM (BCERS)
IDXBPETER BROWN
IDX320180731
IDX4193
193
386255925
MFS HERITAGE TRUST COMPANY
BAY COUNTY EMPLOYEES’ RETIREMENT SYSTEM
(BCERS)
PETER BROWNC/O THE BOGDAHN GROUP5000 ROCKSIDE RD, STE 320INDEPENDENCE, OH 44131
Account Summary - Period
Fund Name07/31/2018
NAVBeginning
Market ValuePeriod
PurchasesPeriod
RedemptionsEnding
UnitsEnding
Market Value
MFS INTERNATIONAL GROWTH FUND CL 1 $178.78 $34,403,369.12 $0.00 ($0.00) 197,834.210 $35,368,800.06
Account Total $34,403,369.12 $35,368,800.06
Account Summary - YTD
Fund NameYTD
PurchasesYTD
RedemptionsAccountInception
MFS INTERNATIONAL GROWTH FUND CL 1 $0.00 ($0.00) 08/06/14
32
MFS HERITAGE TRUST COMPANY
Account Statement07/01/2018 - 07/31/2018
Page 2 of 2
193 BAY COUNTY EMPLOYEES’ RETIREMENT SYSTEM
Transaction History
Trade Date Transaction TypeGross
AmountNet
Amount NAVTransaction
UnitsTotalUnits
MFS INTERNATIONAL GROWTH FUND CL 1— There are no transactions for this section —
Message
Please contact your MFS relationship team for any questions regarding your account statementor transaction confirm.
33
PRISA | 2Q 2018 | REF: 18BSERR-B3EKNS
Confi dential information. Not for further distribution.
PRISA Composite
4
-2%
0%
2%
4%
6%
8%
10%
12%
14%
1.80%2.05%
8.62% 8.44%
9.67% 9.37%
11.35% 11.04% 11.59% 11.39%
4.78%5.29%
8.96% 8.72%
9.01%
N/A
Current
Quarter
1-Year 3-Year 5-Year 10-Year7-Year Since PRISA
Inception
Since NFI-ODCE
Inception
Income Appreciation
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
PRISA NFI-ODCE
1.12%
0.69%1.00%1.05%
4.56%
3.92% 4.01%
4.29% 4.63%
4.87% 4.76%
4.44% 4.83%
6.29% 6.13%
4.68% 5.00%
6.35% 6.28%
4.87% 5.48%
-0.69%
5.20%
7.58%
1.30% 1.44%
7.19% 7.64%
1.30%
0.08%
PRISA Composite Portfolio Overview1
Transaction Activity 2Q18 YTD
Acquisitions (Gross) $597.4M $622.5M
Dispositions (Gross) 273.2M 296.0M
Client Activity 2Q18 YTD
Deposits $269.5M $486.8M
Cash Flow Reinvested 85.0M 166.4M
Withdrawals 353.1M 643.5M
Cash Flow Distributions 94.3M 185.5M
PRISA Composite Snapshot 2Q18
Gross Asset Value $25.1B
Net Asset Value $20.1B
Cash Balance (as a % of NAV) 3.0%
Leverage Ratio2 20.3%
Number of Investments 269
Number of Investors 332
Portfolio Results 2Q18 YTD 2018 Target
Income Return 1.12% 2.22% 4.50% – 5.00%
Appreciation Return 0.69% 2.01% 1.50% – 3.00%
Total Return3 1.80% 4.26% 6.00% – 8.00%
Cash Flow Return 0.90% 1.78% 3.50% – 4.00%
PRISA Composite PerformancePerformance Highlights
PRISA’s income return exceeded the NFI-ODCE benchmark by 7 bps, but appreciation trailed, resulting in total return underperformance of 25 bps for the quarter. However, the Fund’s one-year return of 8.62% outperformed by 18 bps. PRISA’s longer-term relative performance also remains positive. Total returns exceed NFI-ODCE’s in the three, fi ve, seven-year and since-NFI-ODCE-inception time periods, with income returns exceeding the benchmark across all key time periods.
PERFORMANCE VS. BENCHMARK4 FOR THE PERIODS ENDING JUNE 30, 2018
1 PRISA Composite represents combined assets held by PRISA SA and PRISA LP.
2 The Fund leverage ratio calculation is prepared and presented in this report in accordance with the portfolio investment guidelines. Detailed calculations and/or reconciliations to the balance
sheet of the Fund can be found in the Appendix.
3 Total net target returns of 5.0% to 7.0%. Target returns are not guaranteed.
4 Benchmark represents NFI-ODCE. NFI-ODCE returns based on the fi nal report published by NCREIF on July 30, 2018.
Note: Past performance is not a guarantee or a reliable indicator of future results. For illustrative purposes only; Investors should not rely on the PRISA Composite information for any reason.
34
PRISA | 2Q 2018 | REF: 18BSERR-B3EKNS
Confi dential information. Not for further distribution.
PRISA Composite
5
James GlenPortfolio Manager
Catherine MinorAssistant
Portfolio Manager
Letter From the Portfolio Managers
Frank E. GarciaSr. Portfolio Manager
Joanna MulfordPortfolio Manager,
PRISA Chief
Financial Offi cer
To Our Clients and Their Consultants:
Core real estate returns decelerated modestly in the second quarter, following a strong start to
the year. The NFI-ODCE Index continues to post healthy performance with annualized returns at
normalized levels in the high single-digit territory, driven more by income than appreciation. The
macro backdrop remains supportive, characterized by an acceleration of economic growth this year
coupled with broad based job growth. Overall, real estate market fundamentals are in good shape,
evidenced by stable occupancies near historically high levels and rising rents. Interest rates are
edging upward, but generally remain low by historical standards and cap rates are stable.
In this environment, PRISA’s income return of 1.12% again exceeded the benchmark’s,
but slower appreciation of 0.69% for the quarter led to the Fund’s total return of 1.80%
underperforming by 25 bps. Despite slight underperformance in the second quarter, PRISA
continues to outperform the benchmark on the one, three, fi ve and seven-year and since NFI-
ODCE inception time periods. The Fund’s income return also continues to outperform across all
key time periods.
We are pleased with the Fund’s outperformance this cycle given our sound risk positioning.
PRISA’s leverage remains below the benchmark at 20.3%, and our non-core exposure is just
inside of our 10% guideline based on total committed dollars, which is about average versus our
peer group based on invested exposure. We remain committed to our strategy of positioning the
Fund for this mature phase of the cycle and are not stretching in search of yield.
Transactions activity picked up in the second quarter, allowing us to make further progress with
the Fund’s strategic weightings. We increased our exposure to apartments and industrial through
several key acquisitions including: the purchase of a four-property workforce housing apartment
portfolio in South Florida; the commencement of vertical construction on a trophy build-to-core
apartment development in Redwood City, CA; and, a new JV providing the opportunity to develop
up to an 8-building industrial portfolio (6M sf) within the largest inland port in North America,
the CenterPoint Intermodal Center in the Chicago metro area.
Over the past year, we have increased PRISA’s exposure to apartments by 380 bps and
industrial by 130 bps. We remain underweight to retail and, after lowering our exposure to offi ce
by 350 bps over the past year, are now positioned slightly below the benchmark. The sale of
1111 Brickell in Miami, FL this quarter was consistent with our strategy of moving back to an
underweight to offi ce through the sale of tactical investments.
Leasing was active across the portfolio this quarter. Same-property occupancy climbed almost
100 bps year-over-year to 92.7%. Recent gains were widespread, led by Apartments, Industrial
and Offi ce. Gains in occupancy are supporting steady same-property NOI growth, which rose
5.5% YTD, exceeding our budget. Industrial continues to outperform in terms of NOI growth and
total returns - a trend that has been consistent since 2011. Increased supply in the apartment
and storage sectors has led to a deceleration in NOI growth, but we remain optimistic about
these property types’ risk-adjusted returns long term. The retail sector is facing more structural
headwinds, which was a drag on appreciation this quarter.
We continue to see signifi cant interest in the Fund from prospective investors, including many
non-U.S. clients. Capital fl ow activity is still elevated while remaining roughly neutral overall for
the quarter and year to date. We currently do not have an entry nor exit queue but continue to
monitor capital fl ow activity and the fund’s cash closely.
Going forward, we expect economic growth to continue to support favorable real estate
fundamentals, but we also recognize the cycle is past its midpoint and returns are likely to
remain at more normalized levels. As such, we continue to focus on durable income, our long-
term strategic positioning and our risk guidelines. We believe the Fund is well positioned in this
environment and expect to deliver returns at or above the midpoint of the 6.0% to 8.0%1 range
for 2018, led by income.
We appreciate the opportunity to invest on your behalf and thank you for your continued support.
1 Total net target returns of 5.0% to 7.0%. Target returns are not guaranteed.
Note: Targets are not guaranteed. Past performance is not a guarantee or a reliable indicator of future results. There is no guarantee that returns for these or similar investments in the future
will be achieved.
35
PRISA | 2Q 2018 | REF: 18BSERR-B3EKNS
Confi dential information. Not for further distribution.
PRISA Composite
6
PRISA Composite Diversifi cationGeographic & Property Type
PROPERTY TYPE DIVERSIFICATION2
1 NFI-ODCE does not publish detailed property information. Market information is based on CSA defi nitions and calculated by extracting NFI-ODCE property data from the NCREIF Research
Database. Final NFI-ODCE data is based on the fi nal report published by NCREIF on July 30, 2018.
2 Based on PRISA’s share of gross market value in properties and debt investments.
3 Diversifi cation as of 2Q18 is based on gross market value in the NCREIF Performance Attribution Report. Data is preliminary and subject to change.
4 Other includes Harbor Garage, Land, and tax incentive notes connected to real estate investments.
5 NCREIF Region.
PRISA
NFI-
ODCE3
Relative
Exposure
Offi ce 17.3M SF 36.8% 37.3% -50 bps
Apartment 14,875 Units 24.2% 25.5% -130 bps
Retail 12.4M SF 15.7% 18.1% -240 bps
Industrial 27.7M SF 14.6% 15.0% -40 bps
Storage 7.9M SF 6.5% 2.2% 430 bps
Other4 N/A 2.2% 1.9% 30 bps
PRISA
NFI-
ODCE3
Relative
Exposure
Pacifi c 32.9% 34.2% -130 bps
Northeast 26.8% 23.6% 320 bps
Southeast 14.0% 8.9% 510 bps
Mideast 12.1% 9.1% 300 bps
E.N. Central 6.8% 8.0% -120 bps
Southwest 4.8% 9.6% -480 bps
Mountain 1.5% 5.4% -390 bps
W.N. Central 1.1% 1.2% -10 bps
Geographic Diversifi cation by Strategic Markets
PRISA is focused on investing in strategic markets where supply constraints and economic drivers of demand are likely to result in strong long-term operating fundamentals and superior risk adjusted returns. PRISA’s strategic markets are the gateway markets of New York, Los Angeles, Washington D.C., San Francisco, Chicago, Boston and Miami. PRISA overweights its Strategic Markets at 76% relative to NFI-ODCE (66%).1 PRISA also invests in select dynamic, secondary markets in order to achieve diversifi cation benefi ts, as well as to participate in outsized performance during diff erent points in the cycle.
GEOGRAPHIC DIVERSIFICATION2,5
PROPERTY LIFECYCLE2 INVESTMENT STRUCTURE2
92.2% Operating
4.1% Leasing
2.1% Development
1.3% Pre-Development
0.3% Debt Investments
53.4% Wholly Owned
46.3% Joint Venture
0.3% Debt Investments
36
>
>
Abel Noser LLC One Battery Park Plaza, 6th Floor New York, NY 10004-1405 phone: 646.432.4000 800.322.2610 fax: 212.363.7571 website: www.abelnoser.com
Date 8/21/2018Page 1 of 1
Commission Program ReviewRep: MARY DAVIDSON
Ms. Crystal HerbertBay County Financial OfficerBay County Retirement System515 Center AvenueSuite 701Bay City, MO 48708
Month Summary: BAY COUNTY EMPLOYEES RETIREMENT SYSTEM
Period: July 1, 2018 To July 31, 2018
July 2018 Year To DateOpening Balance: $0.00 $0.00*
Are you considering making a portfolio change soon? Contact your Abel Noser representative [email protected] for information about our Transition Service which was rated #1 in the'Overall Service' category in the 2013 aiCIO Global TM Survey.
In order to comply with ERISA; It is our understanding that the monies disbursed from your commission recapture account are for the exclusive benefit of the plan's participants and their beneficiaries. Please contact us if you see there are any exceptions to this compliance.
Member New York Stock Exchange and other Principle Exchanges, FINRA/SIPC37
July YTD July YTD July YTD
Beginning Balance $285.67 $335.61
U.S. Equity - 607.96 - 174.20 - 433.76
International Equity - - - - - -
Fixed Income - - - - - -
International Fixed Income - - - - - -
New Issues - - - - - -
Options - - - - - -
Futures - - - - - -
Foreign Currency - - - - - -
Syndicates - - - - - -
U.S. Correspondent Equity - 1,791.04 - 919.84 - 871.20
BAY COUNTY VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATIONBAY COUNTY BUILDING
5,15 CENTER AVENUEBAY CITY. MICHIGAN 48708-5128
4f/"tul
BOARD OF IRUSTEESSteven Gray, Chairperson
Richard BzezinskiKristal Gonzales
Richard GromaskiThomas M. Herek
Jon MorseMatthew Pett
Thomas RyderThomas Starkweather
ADMiNISTRATIVE STAFFKatie Meeth
Tracy Cederquist(989) 89Wr3
TDD (989) 8914049FAX (989) 89s-2076
August 13, 2018
Ms. Kimberly Hyland
MFS Investment Management
lll Huntington Avenue
Boston, MA 02199-7618
Dear Ms. Hyland:
There is a need for the Bay County Employee's Retirement System to rebalance its asset
allocation therefore, I am requesting that MFS Investment Management divest themselves of$2,500,000.00 (two million five hundred thousand dollars) and make funds available for
Comerica Bank on Friday, August 24, 2018.
Ifyou have any questions or concems regarding the above, please contact me at (989) 895-4030-
Sincerely,
al7-Jan Histed
Bay County Finance Offrcer/Secretary
VIA E-MAIL -ORIGINAL TO BE SENT SURFACE MAIL
c: Bay County Employees' Retirement System Board of Trustees
Howard Pohl, AndCo Consulting
Peter Brown, AndCo Consulting
Daniel Berd, Comerica Bank
Kathleen Meeth, Retirement Admini strator
64
65
2019 BAY COUNTY EMPLOYEES' RETIREMENT SYSTEM BUDGET PROPOSAL
ACCOUNTS FOR: 2015 2016 2017 2018 2018 PCT
7310 RETIREMENT SYSTEM FUND ACTUALS ACTUALS ACTUALS ACTUALS BUDGET PROJECTION CHANGE NOTES
73127400 59401 ER CONTR-BEHAVE.HEALTH (3,010,073.52) (1,243,668.00) (990,600.00) (524,190.00) (1,048,375.00) (1,048,375.00) 0% Will Change Based on Valuation ARC
73127400 59403 ER CONTR-HEALTH FUND (60,743.22) (62,732.51) (72,508.27) (1,475.96) (63,000.00) (63,000.00) 0%
73127400 59404 ER CONTR-ROAD COMMISS. (583,225.95) (545,993.22) (583,710.16) (291,967.97) (687,636.00) (687,636.00) 0% Will Change Based on Valuation ARC
73127400 59406 ER CONTR-LIBRARY (132,837.45) (77,794.32) (70,454.81) (37,784.15) (74,780.00) (74,780.00) 0% Will Change Based on Valuation ARC
73127400 59419 ER CONTR-MED CARE FAC. (437,655.73) (286,706.00) (26,904.45) (136,834.11) (287,636.00) (287,636.00) 0% Will Change Based on Valuation ARC