Connecticut Conference United Church of Christ - Total Return Fund Quarterly Investment Review - Second Quarter 2019 One Hundred Northfield Drive, Windsor, CT 06095 Toll Free:866.466.9412 www.fiallc.com
Connecticut Conference United Church of Christ - Total Return Fund
Quarterly Investment Review - Second Quarter 2019
One Hundred Northfield Drive, Windsor, CT 06095 Toll Free:866.466.9412 www.fiallc.com
the ded ction of transaction and/or c stodial charges the ded ction of an
Important Disclosure Information: Past performance may not be indicativeof future results. Account information has been compiled solely byFiduciary Investment Advisors, LLC, has not been independently verified,and does not reflect the impact of taxes on non-qualified accounts. Inpreparing this report, Fiduciary Investment Advisors, LLC has relied uponinformation provided by third party sources. A copy of our currentwritten disclosure statement discussing our advisory services and feescontinues to remain available for your review upon request. Historicalperformance results for investment indices and/or categories have beenprovided for general comparison purposes only, and generally do not reflectthe deduction of transaction and/or custodial charges, the deduction of aninvestment management fee, nor the impact of taxes, the incurrence ofwhich would have the effect of decreasing historical performance results. Itshould not be assumed that your account holdings correspond directly toany comparative indices.
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2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
1Q 2018
4Q 2017
Transferred portfolio to phase one of the newly approved interim portfolio and prepared for asset transfer to Union Bank.Fixed Income:- Sold all shares of SPDR Barclays TIPS ETF, Aberdeen Global High Income I, Goldman Sachs Strategic Income- Purchased temporary holding of Vanguard Total Bond ETF- Purchased long term holding of BlackRock Strategic Income Opportunities K - Purchased additional shares of PIMCO Income Fund I - Halted trading on US Trust Taxable Fixed Income Separate AccountDomestic Equity:- Liquidated holdings within The Boston Company Large Cap Growth, Columbia Large Cap Growth, Hillcrest Small Cap Value accounts - Purchased temporary holding of Vanguard Russell 3000 ETF- Purchased long term holding of Walden Small Cap- Halted trading in Columbia Large Cap Value in preparation for asset transfer to Union BankInternational Equity:- Liquidated holdings within MFS Research International account and sold all shares of Neuberger Berman Emerging Markets I - Purchased long term holding of Hartford Schroders Emerging Markets, DFA International Social Core I, MFS International EquityReal Estate:- Sold a portion of shares of the Vanguard REIT Index Fund- Purchased long term holding in Cohen& Steers Inst'l Global Real EstateInflation Protected:- Sold all shares of Credit Suisse Commodity Return I
CTUCC Total Return FundRecent Notable Portfolio ActivityAs of June 30, 2019
Transferred portfolio assets from Bank of America to Union Bank- Sold out of temporary ETF holdings to fund new separate account managers- Assets transferred in kind from US Trust Fixed Income Separate Account to Breckinridge Fixed Income Separate Account- Columbia Large Cap Value resumed tradingTransitioned portfolio to the newly approved target allocation:- Equal weight domestic and international equity- Funding for increased international weighting was sourced from Columbia Large Cap Value, reduced to a 10.5% allocation from 18%- Increased allocation to DFA International Social Core and MFS International Equity
CTUCC Total Return Fund - Recent Notable Portfolio Activity
Share class Exchange - Hartford Schroders Emerging Markets Fund from I shares into SDR shares for a fee savings of 13 bps
Portfolio ReallocationEquity:- Removed MFS International Equity due to the large exposure to the exclusion list- Increased allocation and converted the Parametric All Cap Equity strategy into a Global Equity strategy with a 25.5% allocation- Increased allocation of DFA International Social Core from 12.25% to 14.5%- Maintained equal weight targets to domestic and international equityReal Assets:- Increased real assets allocation from 5% to 7.5% sourced from the overall equity allocation- Terminated Vanguard Real Estate Index- Made initial investment into T. Rowe Price New Era Fund at a 5% allocation
No notable portfolio activity
Portfolio Reallocation:- Shifted allocation from a 50/50 domestic/international split to a 55/45 split.
No notable portfolio activity
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AssetAllocation
($)
AssetAllocation
(%)
TargetAllocation
(%)
Differences(%)
Total Return Fund 98,331,764 100.00 100.00 0.00
Short Term Liquidity 259,007 0.26 0.00 0.26
Fidelity Instl Cash Portfolio 259,007 0.26 0.00 0.26
Fixed Income 28,260,409 28.74 30.00 -1.26
Breckinridge Fixed Income 18,823,739 19.14 20.00 -0.86
PIMCO Income Inst 4,703,057 4.78 5.00 -0.22
BlackRock Strategic Income Opportunities K 4,733,613 4.81 5.00 -0.19
Equities 69,812,347 71.00 70.00 1.00
Domestic Equity 16,347,145 16.62 16.25 0.37
Columbia Large Cap Value 11,069,619 11.26 11.00 0.26
Walden Small Cap Innovation 5,277,527 5.37 5.25 0.12
Global Equity 26,321,125 26.77 26.25 0.52
Parametric Global Equity 26,321,125 26.77 26.25 0.52
International Equity 19,853,424 20.19 20.00 0.19
DFA International Social Core Inst 12,821,008 13.04 13.00 0.04
Hartford Schroders Emerging Market Equity I 7,032,417 7.15 7.00 0.15
Real Assets 7,290,653 7.41 7.50 -0.09
T Rowe Price New Era I 4,932,433 5.02 5.00 0.02
Cohen & Steers Global Realty I 2,358,220 2.40 2.50 -0.10
Asset Allocation - Total Return FundAs of June 30, 2019
Investments with a zero balance were held in the plan during the reporting period and will be removed once they no longer impact plan performance.
Asset Allocation weightings may not add up to 100% due to rounding.
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Asset Allocation by Mandate Type Asset Allocation by Asset Class
Fund NameFixed Income and
CashDomestic
EquityInternational
DevelopedEmerging Markets
Commodities & Natl Resource
EquityReal Estate Alternatives
Parametric Global Equity 65.6% 30.3% 0.1% 4.0%Columbia Large Cap Value 97.7% 2.3%Walden Small Cap 93.6% 6.4%DFA International Social Core Inst 95.8% 0.9% 3.3%Hartford Schroders Emering Markets Equity 99.4% 0.6%
CTUCC Total Return Fund Asset AllocationAs of June 30, 2019
DISCLAIMER: The "look through" information provided above has been gathered from sources deemed to be reliable, including Morningstar and the managers. The asset class look through on the right is designed to give a general representation of how portfolio assets are allocated among various asset classes. However, the information may include discrepancies, based on how managers classify certain holdings. Please note, percentages may not sum to 100 due to rounding.
Money Market, 0.3%
Fixed Income, 28.7%
Domestic Equity, 16.6%
International Equity, 20.2%
Global equity, 26.8%
Real Assets, 7.4% Money Market, 0.3%
Fixed Income, 28.7%
Domestic Equity, 33.6%
Natural Resource Equity, 5.0%
Real Estate, 4.5%
International Developed, 20.6%
International Emerging, 7.3%
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Additional Manager Information - Total Return Fund
Exclusionary Screen
Integrated ESG Approach
Active Passive
Breckinridge Fixed Income 20.0% 1.9% 0.13%PIMCO Income Fund I 5.0% N/A 0.74%BlackRock Strategic Income Opportunities K 5.0% N/A 0.74%Parametric Global Equity 26.25% 0.5% Available 0.18%Columbia Large Cap Value 11.0% 0.7% 0.65%Walden Small Cap 5.25% 0.2% 1.00%DFA International Social Core I 13.0% 0.9% 0.33%Hartford Schroders Emerging Markets SDR 7.0% 2.0% 1.10%T. Rowe Price New Era 5.0% 1.5% 0.56%Cohen & Steers Global Realty I 2.5% 0.1% 0.90%
70.25% 32.25%
Source: Union Bank, Morningstar, FactSetTotals are based off target allocations
Cash Exposure Portfolio Target Allocation (%)
Manager/Fund Name Fee Schedule
DISCLOSURE: The figures on this page have been obtained from sources we deem to be reliable, including the managers and FactSet. FIA has not independently verified this information.
Total 73.75% 25.5% 0.44%
SRI Review
82.5%
Active vs Passive Breakdown
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Account Reconciliation Missionary Society Benchmark Composition
Calendar Year Performance Summary
Trailing Performance Summary
QTR YTDSince
InceptionInception
Date
Total Return Fund 07/01/1975
Beginning Market Value 103,246,748 94,858,651 6,594,700
Net Contributions -8,034,413 -8,097,171 -17,350,590
Total Gain/Loss 3,119,428 11,570,284 109,087,653
Ending Market Value 98,331,764 98,331,764 98,331,764
Allocation Mandate Weight (%)
Mar-2019
Blmbg. Barc. U.S. Aggregate Index 30.0
Russell 3000 Index 34.5
MSCI AC World ex USA (Net) 28.0
FTSE EPRA/NAREIT Developed Index (Net) 2.5
Lipper Glbl Nat Res IX 5.0
QTR YTD1
Year3
Years5
Years7
Years10
YearsSince
InceptionInception
Date
Total Return Fund 3.2 12.4 5.3 7.7 4.6 7.3 8.4 9.7 07/01/1975
Missionary Society Benchmark 3.2 13.0 5.7 8.0 5.1 7.5 8.6 N/A
Difference 0.0 -0.6 -0.4 -0.3 -0.5 -0.2 -0.2 N/A
2018 2017 2016 2015 2014 2013 2012 2011
Total Return Fund -6.9 16.2 5.9 -2.2 4.9 16.4 11.4 0.0
Missionary Society Benchmark -7.2 15.2 9.3 -2.5 5.9 14.4 12.7 -0.1
Difference 0.3 1.0 -3.4 0.3 -1.0 2.0 -1.3 0.1
Total Plan Performance Summary - Total Return FundAs of June 30, 2019
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QTD YTD1
Year3
Years5
Years10
YearsSince
InceptionInception
Date
Total Return Fund 3.2 12.4 5.3 7.7 4.6 8.4 9.7 07/01/1975
Missionary Society Benchmark 3.2 13.0 5.7 8.0 5.1 8.6 N/A
Short Term Liquidity 0.5 1.1 2.1 1.2 0.8 0.5 5.0 07/01/1975
90 Day U.S. Treasury Bill 0.6 1.2 2.3 1.4 0.9 0.5 4.8
Fidelity Instl Cash Portfolio 0.5 1.1 2.1 N/A N/A N/A 1.8 01/01/2018
90 Day U.S. Treasury Bill 0.6 1.2 2.3 N/A N/A N/A 2.1
Fixed Income 2.6 5.1 6.8 3.0 2.8 4.4 7.3 07/01/1975
Blmbg. Barc. U.S. Aggregate Index 3.1 6.1 7.9 2.3 2.9 3.9 N/A
Breckinridge Fixed Income 2.6 (8) 5.0 (9) 7.2 (3) N/A N/A N/A 4.9 (4) 02/01/2018
Bloomberg Barclays Intermediate US Govt/Credit Idx 2.6 5.0 6.9 N/A N/A N/A 4.8
IM U.S. Intermediate Duration Fixed Income (MF) Median 1.9 3.9 5.3 N/A N/A N/A 3.6
PIMCO Income Inst 2.4 (92) 5.5 (86) 6.9 (80) N/A N/A N/A 5.1 (2) 05/01/2017
Blmbg. Barc. U.S. Aggregate Index 3.1 6.1 7.9 N/A N/A N/A 3.7
IM U.S. Broad Market Core Fixed Income (MF) Median 3.0 6.3 7.6 N/A N/A N/A 3.5
BlackRock Strategic Income Opportunities K 2.6 (15) 5.2 (39) 5.1 (29) N/A N/A N/A 3.1 (33) 01/01/2018
Libor (3 month) 0.7 1.4 2.6 N/A N/A N/A 2.3
Blmbg. Barc. U.S. Aggregate Index 3.1 6.1 7.9 N/A N/A N/A 4.0
IM Alternative Credit Focus (MF) Median 1.7 4.6 3.9 N/A N/A N/A 2.5
Manager Performance Overview - Total Return FundAs of June 30, 2019
Returns for periods less than one year are not annualized. Returns are net of fees unless otherwise noted.
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Manager Performance Overview - Total Return FundAs of June 30, 2019
QTD YTD1
Year3
Years5
Years10
YearsSince
InceptionInception
Date
Equities 3.4 15.9 4.5 10.7 6.3 11.1 11.6 07/01/1975
MSCI AC World Index (Net) 3.6 16.2 5.7 11.6 6.2 10.1 N/A
Domestic Equity 4.3 17.7 10.7 N/A N/A N/A 8.6 01/01/2018
Russell 3000 * 4.1 18.7 9.0 N/A N/A N/A 7.7
Columbia Large Cap Value 4.2 (26) 16.5 (30) 13.6 (3) 12.6 (8) 10.4 (1) 13.8 (9) 9.2 (3) 04/01/1999
Russell 1000 Value Index 3.8 16.2 8.5 10.2 7.5 13.2 6.8
IM U.S. Large Cap Value Equity (MF) Median 3.5 15.2 6.4 10.5 6.9 12.1 6.4
Walden Small Cap Innovation 4.4 (8) 20.0 (8) 7.6 (1) N/A N/A N/A 8.3 (3) 01/01/2018
Russell 2000 Index 2.1 17.0 -3.3 N/A N/A N/A 2.7
IM U.S. Small Cap Core Equity (MF) Median 1.7 13.5 -6.1 N/A N/A N/A 0.5
Global Equity 4.3 17.4 N/A N/A N/A N/A 1.7 09/01/2018
Parametric Global Benchmark (69.5/30.5) 4.0 17.1 N/A N/A N/A N/A 1.5
Parametric Global Equity 4.3 (34) 17.4 (43) N/A N/A N/A N/A 1.7 (48) 09/01/2018
Parametric Global Benchmark (69.5/30.5) 4.0 17.1 N/A N/A N/A N/A 1.5
IM Global Equity (MF) Median 3.5 16.4 N/A N/A N/A N/A 1.4
International Equity 2.3 12.5 -1.9 N/A N/A N/A -3.1 01/01/2018
MSCI ACWI Ex U.S.(net) * 3.0 13.6 1.3 N/A N/A N/A -1.1
DFA International Social Core Inst 2.4 (61) 12.5 (59) -4.5 (83) N/A N/A N/A -4.8 (69) 01/01/2018
MSCI EAFE (Net) Index 3.7 14.0 1.1 N/A N/A N/A -1.1
IM International Large Cap Core Equity (MF) Median 3.0 13.7 -0.4 N/A N/A N/A -2.2
Hartford Schroders Emerging Market Equity I 2.1 (38) 13.0 (43) 1.7 (43) N/A N/A N/A 6.1 (24) 06/01/2017
MSCI Emerging Markets (Net) Index 0.6 10.6 1.2 N/A N/A N/A 5.0
IM Emerging Markets Equity (MF) Median 1.6 12.2 0.9 N/A N/A N/A 3.9
Returns for periods less than one year are not annualized. Returns are net of fees unless otherwise noted.
9
Manager Performance Overview - Total Return FundAs of June 30, 2019
QTD YTD1
Year3
Years5
Years10
YearsSince
InceptionInception
Date
Real Assets 1.0 14.7 -0.6 N/A N/A N/A -0.3 01/01/2018
Real Assets Benchmark -1.2 12.4 -3.9 N/A N/A N/A -5.8
T Rowe Price New Era I 0.9 (38) 13.7 (35) N/A N/A N/A N/A -6.5 (38) 09/01/2018
Lipper Glbl Nat Res IX -1.9 11.1 N/A N/A N/A N/A -11.2
IM Global Natural Resources (MF) Median -0.5 13.1 N/A N/A N/A N/A -9.6
Cohen & Steers Global Realty I 1.0 (46) 16.1 (44) 11.3 (20) N/A N/A N/A 7.5 (24) 01/01/2018
FTSE EPRA/NAREIT Developed Index (Net) -0.1 14.5 7.7 N/A N/A N/A 5.3
IM Global Real Estate (MF) Median 0.9 15.6 8.6 N/A N/A N/A 6.1
- The inception date expressed on the Manager Performance Overview page(s) represents the first day of the first full month following the purchase of the investment. Performance figures shownat the fund level begin on this inception date. Inception dates for asset class composites reflect the start date at which these returns could be calculated using historical and existing systemcapabilities and may vary from the inception dates of underlying component strategies. Composite performance includes all funds held in the composite since inception.- Returns are net of fees unless otherwise stated. Mutual fund performance stated above may differ slightly from the current share class' historical performance due to share class exchanges.
* Domestic Equity Benchmark is Russell 3000 since March 2018
* International Equity Benchmark is MSCI ACWI Ex U.S. (net) since March 2018
Returns for periods less than one year are not annualized. Returns are net of fees unless otherwise noted.
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Manager Manager Status Comments
Fixed Income
Breckinridge Fixed Income Maintain 2Q 2019 – The Breckinridge portfolio produced a positive return during the second quarter, performing in linewith the benchmark. The strategy’s overweight allocation to corporate bonds proved to be beneficial for thequarter as this was one of the top performing areas of the fixed income market. On the other hand, exposureto municipal bonds was a headwind. The portfolio ended the quarter with a duration of 3.9 years, in line withthat of the benchmark, and had minimal impact on relative performance.
PIMCO Income Inst Maintain 2Q 2019 – The PIMCO Income Fund produced a positive return during the second quarter but trailed theperformance of the Bloomberg Barclays U.S. Aggregate Bond Index. On a relative basis, the largest headwindfor the strategy was a shorter than benchmark duration as interest rates fell during the quarter. The portfolio’sduration ended the quarter at 0.4 years, much shorter than the benchmark’s 5.7 years. However, exposure toinvestment grade and high yield corporate bonds, select emerging market currencies, and Australian interestrates helped performance. The team at PIMCO continues to find opportunities in emerging markets andremains tactical with the strategy’s currency exposure, favoring the U.S. dollar and emerging marketcurrencies over other developed regions.
BlackRock Strategic Income Opportunities K Maintain 2Q 2019 – The BlackRock Strategic Income Opportunities strategy produced a positive return during thesecond quarter but trailed the broader fixed income market. The largest headwind for the strategy was thedeclining interest rate environment. The portfolio ended the quarter with a duration of 2.9 years,approximately half that of the broader market. While this has been a headwind of late due to falling interestrates this profile has been beneficial in past rising rate environments. On the other hand, the portfolio’sexposure to diversifying segments of the fixed income market were beneficial, most notably exposures toemerging markets, investment grade and high yield corporates, non-agency MBS, and CMBS. Spread sectorsgenerally outperformed government bonds during the quarter as investor demand for yield continues to befueled by the low interest rate environment. Despite near-term underperformance, the team at BlackRock hasproduced a strong track record over the long-term and has done so with a lower volatility profile than themarket, resulting in favorable risk adjusted returns.
Domestic Equity
Columbia Large Cap Value Maintain 2Q 2019 - The Columbia Dividend Value strategy outperformed the Russell 1000 Value Index while performingin-line with the S&P 500 Index during the second quarter. US equities continued to rally during the secondquarter of 2019, building upon the continued progress in trade relations and expectations of accommodativemonetary policy. Stock selection was the primary driver of the strategy's outperformance this quarter whilesector allocation also added modestly to results. Selection was strong within the consumer staples sector ledby Hershey (+15%) and Pepsi (+5%). Stock selection in the energy, industrials and consumer discretionarysectors also added value. Within energy, the lack of exposure to higher risk names with greater exposure tocommodity prices aided relative results. An underweight position to energy further contributed to returns inthat space as the sector was the worst performing one in the index for the period. An overweight toindustrials also helped. Offsetting some of the gains here was stock selection in the healthcare sector alongwith an underweight to financials.
Manager Scorecard - Total Return FundAs of June 30, 2019
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Manager Scorecard - Total Return FundAs of June 30, 2019Manager Manager Status Comments
Walden Small Cap Innovation Maintain 2Q 2019 – Walden Small Cap Innovations strategy outperformed the Russell 2000 Index in the quarter. Thefund benefitted from strong security selection, particularly in the healthcare space. The strategy was able toavoid the healthcare names that were struggled amid pricing pressures from the current administration andpolitical rhetoric in the way of a one payer system. Strong security selection was also prevalent in the materialsand communication services sectors. The strategy has a higher average market cap than the index, whichhelped in the quarter as large caps outpaced small caps.
Global Equity
Parametric Global Equity Maintain 2Q 2019 – The Parametric Global Equity Strategy modestly outperformed its custom benchmark for thequarter. The strategy is a passively managed portfolio that adheres to CTUCC's social restrictions of alcohol,tobacco, gambling, and weapons. Holdings include common and preferred stock of U.S. companies included inthe Russell 3000 benchmark and ADRs of non-U.S. companies included in the MSCI EAFE Index.
International Equity
DFA International Social Core Inst Maintain 2Q 2019 – The DFA International Social Core Equity Portfolio rose during the second quarter butunderperformed its benchmark, the MSCI EAFE Index, as the portfolio’s performance was hindered by boththe size and value dimensions. With non-U.S. small-cap stocks significantly underperforming large-caps for theperiod, the portfolio’s inclusion of and emphasis on small-caps detracted from performance relative to theindex, which is composed primarily of large and mid-cap stocks. In addition, the portfolio’s greater emphasison value stocks had a negative impact on relative performance as growth stocks vastly outperformed valuestocks during the quarter.
Hartford Schroders Emerging Market EquityI
Maintain 2Q 2019 - The Hartford Schroders Emerging Markets Equity Fund outpaced its benchmark, the MSCI EmergingMarkets Index, during the quarter. The gains emerging markets experienced in the first quarter were tested bystrained US/China trade negotiations and a dramatic slowing in Chinese economic data. Emerging marketswere volatile over the second quarter, ending with a slight gain. At the fund level, strong stock selection wasresponsible for outperformance. Areas of strength included financials, consumer discretionary and energy. Ona country basis, stock selection in China was additive as was selection and an overweight to Brazil.
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Manager Scorecard - Total Return FundAs of June 30, 2019Manager Manager Status Comments
Real Assets
T Rowe Price New Era I Maintain 2Q 2019 – The T. Rowe Price New Era Fund produced a positive return during the second quarter andoutperformed its index. Increased market volatility and impacts of trade war uncertainty led to somedispersion among underlying resource equity sectors. Industrial metals faltered on continued demandconcerns given uncertainty on how the US-China trade war will play out. Energy equities also traded lower asoil prices weakened in the period. In contrast to industrial metals, the trade speculation was a tailwind forprecious metals, as investors sought out safe-haven assets with fears of slower global growth prospects.Against this backdrop, portfolio outperformance was driven by an overweight to industrial gases and fromstock selection in precious metals. Top contributors included Kirland Lake Gold and Northern Star Resources,rallying alongside the rise in gold prices. On the negative side, stock selection among integrated oil and gasnames detracted. Overweight positions in Occidental Petroleium and Chevron were among the bottomrelative performers.
Cohen & Steers Global Realty I Maintain 2Q 2019 – The Cohen and Steers Global Realty Fund generated a positive return during the second quarter andoutpaced its index. Global REITs were essentially flat in the period as modest gains in the U.S. and Asianmarkets were offset by negative returns in Europe. Within the U.S., defensive and high dividend payingsegments of the market outperformed, sparked by heightened volatility and in anticipation of the Fed loweringrates. European REITs were dragged lower from weakness in Germany and the Netherlands. The Germanresidential sector fell sharply after Berlin proposed to freeze rents for five years in response to rapidlyincreasing housing costs, while negative sentiment among retail REITs weighed on results in the Netherlands.Lastly, within Asia, continued trade war concerns had a negative impact broadly. At the portfolio level, thestrategy benefited from greater exposure to industrial and residential REITs, while underexposure to retail alsoadded value. Strong selection among health care, retail and office segments provided an additional boost. Onthe negative side, weakness in hotels was partially counteracting in the period.
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Cash Flow Summary - Total Return Fund
Jan-19 Feb-19 Mar-19 Total 1Q19 Apr-19 May-19 Jun-19 Total 2Q19
Short Term LiquidityFidelity Instl Cash Portfolio (34,856) 56,299 (11,712) 9,731 (2,571) (48,637) 256,796 205,587
Total Short Term Liquidity (34,856) 56,299 (11,712) 9,731 (2,571) (48,637) 256,796 205,587Fixed IncomeBreckinridge Fixed Income (375,000) (600,000) (975,000) (500,000) (1,750,000) (2,250,000)PIMCO Income Inst (10,000) (150,000) (160,000) (150,000) (375,000) (525,000)BlackRock Strategic Income Opportunities K (100,000) (100,000) (100,000) (375,000) (475,000)
Total Fixed Income (385,000) (850,000) 0 (1,235,000) 0 (750,000) (2,500,000) (3,250,000)Domestic EquityColumbia Large Cap Value 1,200,000 (200,000) 1,000,000 (910,000) (910,000)Walden Small Cap Innovation 700,000 (175,000) 525,000 (340,000) (340,000)
Total Domestic Equity 0 1,900,000 (375,000) 1,525,000 0 (1,250,000) 0 (1,250,000)Global EquityParametric Global Equity 1,150,000 (212,489) 937,511 (370,000) (1,800,000) (2,170,000)
Total Global Equity 0 1,150,000 (212,489) 937,511 (370,000) (1,800,000) (2,170,000)International EquityDFA International Social Core Inst (675,000) (675,000) (790,000) (790,000)Hartford Schroders Emerging Market Equity I (800,000) (800,000) (200,000) (200,000)
Total International Equity 0 (1,475,000) 0 (1,475,000) 0 (990,000) 0 (990,000)Real AssetsT Rowe Price New Era I 375,000 375,000 (100,000) (200,000) (300,000)Cohen & Steers Global Realty I (200,000) (200,000) (80,000) (200,000) (280,000)
Total Real Assets 0 175,000 0 175,000 (180,000) (200,000) (200,000) (580,000)Total (419,856) 956,299 (386,712) (62,759) (552,571) (5,038,637) (2,443,204) (8,034,413)
ManagerNet Cash Flows
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Allocation Summary - Total Return Fund
Manager
Strategic Target End
of Prior Year
Asset Allocation
End of Prior Year
Strategic Target End
of Q1
Asset Allocation End of Q1
Strategic Target End
of Q2
Asset Allocation End of Q2
Short Term LiquidityFidelity Instl Cash Portfolio 0.0% 0.0% 0.0% 0.1% 0.0% 0.3%
Total Short Term Liquidity 0.0% 0.0% 0.0% 0.1% 0.0% 0.3%Fixed IncomeBreckinridge Fixed Income 20.0% 22.2% 20.0% 19.9% 20.0% 19.1%PIMCO Income Inst 5.0% 5.4% 5.0% 5.0% 5.0% 4.8%BlackRock Strategic Income Opportunities K 5.0% 5.3% 5.0% 4.9% 5.0% 4.8%
Total Fixed Income 30.0% 32.9% 30.0% 29.8% 30.0% 28.7%Domestic EquityColumbia Large Cap Value 10.0% 9.9% 11.0% 11.2% 11.0% 11.3%Walden Small Cap Innovation 4.75% 4.4% 5.3% 5.2% 5.3% 5.4%
Total Domestic Equity 14.75% 14.3% 16.3% 16.4% 16.3% 16.6%Global EquityParametric Global Equity 25.5% 24.7% 26.3% 26.5% 26.3% 26.8%
Total Global Equity 25.5% 24.7% 26.3% 26.5% 26.3% 26.8%International EquityDFA International Social Core Inst 14.5% 13.4% 13.0% 12.9% 13.0% 13.0%Hartford Schroders Emerging Market Equity I 7.75% 7.5% 7.0% 6.9% 7.0% 7.2%
Total International Equity 22.25% 21.0% 20.0% 19.7% 20.0% 20.2%
Total Domestic and International Equity 62.5% 59.9% 62.5% 62.6% 62.5% 63.6%Real AssetsT Rowe Price New Era I 5.0% 4.5% 5.0% 5.0% 5.0% 5.0%Cohen & Steers Global Realty I 2.5% 2.6% 2.5% 2.5% 2.5% 2.4%
Total Real Assets 7.5% 7.1% 7.5% 7.6% 7.5% 7.4%Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
*Parametric Global Equity was initially directed to run a 65% domestic / 35% international mandate at initiation. InFebruary 2019 they were directed to run a 69.5% domestic / 30.5% international mandate.
15
3 Year Risk and Return 5 Year Risk and Return
7 Year Risk and Return Since Inception Risk and Return
Total Return Fund
Missionary Society Benchmark
7.40
7.60
7.80
8.00
8.20
Ret
urn
(%)
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Risk (Standard Deviation %)
Total Return Fund
Missionary Society Benchmark
4.50
4.80
5.10
5.40
Ret
urn
(%)
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Risk (Standard Deviation %)
Total Return Fund
Missionary Society Benchmark
7.00
7.20
7.40
7.60
7.80
Ret
urn
(%)
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Risk (Standard Deviation %)
Total Return Fund
Missionary Society Benchmark
5.04
5.32
5.60
5.88
6.16
6.44
Ret
urn
(%)
0.00 3.00 6.00 9.00 12.00 15.00
Risk (Standard Deviation %)
Risk vs. Return - Total Return FundAs of June 30, 2019
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3 Year Historical MPT Statistics
5 Year Historical MPT Statistics
7 Year Historical MPT Statistics
Since Inception Historical MPT Statistics
ReturnStandardDeviation
DownsideRisk
SharpeRatio
InformationRatio
TrackingError
R-Squared Beta Alpha
Total Return Fund 7.71 7.79 5.20 0.82 -0.36 0.88 0.99 0.99 -0.25
Missionary Society Benchmark 8.05 7.80 5.16 0.86 N/A 0.00 1.00 1.00 0.00
90 Day U.S. Treasury Bill 1.37 0.23 0.00 N/A -0.86 7.81 0.00 0.00 1.38
ReturnStandardDeviation
DownsideRisk
SharpeRatio
InformationRatio
TrackingError
R-Squared Beta Alpha
Total Return Fund 4.61 8.33 5.52 0.48 -0.44 1.11 0.98 1.02 -0.60
Missionary Society Benchmark 5.14 8.07 5.24 0.56 N/A 0.00 1.00 1.00 0.00
90 Day U.S. Treasury Bill 0.85 0.26 0.01 N/A -0.56 8.06 0.01 0.00 0.84
ReturnStandardDeviation
DownsideRisk
SharpeRatio
InformationRatio
TrackingError
R-Squared Beta Alpha
Total Return Fund 7.27 7.85 4.91 0.86 -0.18 1.14 0.98 1.04 -0.51
Missionary Society Benchmark 7.52 7.47 4.60 0.93 N/A 0.00 1.00 1.00 0.00
90 Day U.S. Treasury Bill 0.63 0.24 0.01 N/A -0.93 7.47 0.00 0.00 0.63
ReturnStandardDeviation
DownsideRisk
SharpeRatio
InformationRatio
TrackingError
R-Squared Beta AlphaInception
Date
Total Return Fund 9.72 9.06 5.52 0.55 N/A N/A N/A N/A N/A 07/01/1975
Missionary Society Benchmark N/A N/A N/A N/A N/A N/A N/A N/A N/A 07/01/1975
90 Day U.S. Treasury Bill 4.82 1.12 0.01 N/A N/A N/A N/A N/A N/A 07/01/1975
MPT Statistics - Total Return FundAs of June 30, 2019
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Up/Down Markets - 3 Years Up/Down Markets - 5 Years
Up Market Capture Ratio Down Market Capture Ratio
Total Return Fund
Missionary Society Benchmark
0.0
2.0
4.0
-2.0
-4.0
-6.0
Ave
rage
Ret
urn
(%)
29 Up Months 7 Down Months
1.5
-2.9
1.5
-2.9
Total Return Fund
Missionary Society Benchmark
0.0
2.0
4.0
-2.0
-4.0
Ave
rage
Ret
urn
(%)
40 Up Months 20 Down Months
1.7
-2.0
1.7
-2.2
Total Return Fund
0.0
50.0
100.0
150.0
Up
Mar
ket
Ca
ptur
e R
atio
(%)
3Years
5Years
Time Periods
97.7 100.2
Total Return Fund
0.0
50.0
100.0
150.0
Dow
n M
arke
t
Capt
ure
Rat
io (%
)
3Years
5Years
Time Periods
99.7106.3
Market Capture - Total Return FundAs of June 30, 2019
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Allocation Mandate Weight (%)
Mar-2019
Blmbg. Barc. U.S. Aggregate Index 30.0
Russell 3000 Index 34.5
MSCI AC World ex USA (Net) 28.0
FTSE EPRA/NAREIT Developed Index (Net) 2.5
Lipper Glbl Nat Res IX 5.0
Sep-2018
Blmbg. Barc. U.S. Aggregate Index 30.0
Russell 3000 Index 31.3
MSCI AC World ex USA (Net) 31.3
FTSE EPRA/NAREIT Developed Index (Net) 2.5
Lipper Glbl Nat Res IX 5.0
Mar-2018
Blmbg. Barc. U.S. Aggregate Index 30.0
Russell 3000 Index 32.5
MSCI AC World ex USA (Net) 32.5
FTSE EPRA/NAREIT Developed Index (Net) 5.0
Feb-2018
Russell 1000 Value Index 15.0
Russell 1000 Growth Index 15.0
Russell 2000 Index 10.0
MSCI EAFE (Net) Index 12.0
MSCI Emerging Markets (Net) Index 8.0
Blmbg. Barc. U.S. Gov't/Credit 24.0
ICE BofAML Global High Yield Constrained (USD) 3.0
JP Morgan Non-U.S. Global Government Bond Index (H 3.0
Bloomberg Commodity Index Total Return 5.0
Vanguard Spliced REIT Index 5.0
Allocation Mandate Weight (%)
Nov-2013
Russell 1000 Value Index 15.0
Russell 1000 Growth Index 15.0
Russell 2000 Index 10.0
MSCI EAFE (Net) Index 12.0
MSCI Emerging Markets (Net) Index 8.0
Blmbg. Barc. U.S. Gov't/Credit 24.0
ICE BofAML Global High Yield Constrained (USD) 3.0
JP Morgan Non-U.S. Global Government Bond Index (H 3.0
Bloomberg Commodity Index Total Return 5.0
MSCI U.S. REIT Index (Net) 5.0
Jan-2011
Russell 1000 Value Index 15.0
Russell 1000 Growth Index 15.0
Russell 2000 Index 10.0
MSCI EAFE (Net) Index 12.0
MSCI Emerging Markets (Net) Index 8.0
Blmbg. Barc. U.S. Gov't/Credit 32.0
ICE BofAML Global High Yield Constrained (USD) 3.0
Bloomberg Commodity Index Total Return 3.0
MSCI U.S. REIT Index (Net) 2.0
Apr-2010
Russell 1000 Value Index 20.5
Russell 1000 Growth Index 20.5
Russell 2000 Index 7.0
MSCI EAFE (Net) Index 9.0
Bloomberg Commodity Index Total Return 3.0
Blmbg. Barc. U.S. Gov't/Credit 40.0
Benchmark CompositionMissionary Society BenchmarkAs of June 30, 2019
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Benchmark CompositionMissionary Society BenchmarkAs of June 30, 2019
Allocation Mandate Weight (%)
May-1999
Russell 1000 Value Index 22.0
Russell 1000 Growth Index 22.0
Russell 2000 Index 7.0
MSCI EAFE (Net) Index 9.0
Blmbg. Barc. U.S. Gov't/Credit 40.0
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Allocation Mandate Weight (%)
Jan-2001
MSCI AC World Index (Net) 60.0
Blmbg. Barc. U.S. Aggregate Index 30.0
CPI + 4.5% 10.0
Benchmark CompositionMissionary Society ACWI IndexAs of June 30, 2019
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FUND FAMILY WEB SITEBlackRock www.blackrock.com
Cohen & Steers* www.cohenandsteers.comDimensional Fund Advisors www.dimensional.com
Hartford Schroders www.hartfordfunds.comPIMCO www.pimco.com
Vanguard www.vanguard.comT. Rowe Price www.troweprice.com
Walden www.waldenassetmgmt.com
Prospectus LinksAs of June 30, 2019
*FIA has been engaged as a plan consultant by retirement plans sponsored by various investment management companies, including Cohen & SteersCapital. All fees paid to FIA are for investment consulting services only. Use of this investment manager by an FIA client is based solely on merit; FIA does
not receive any additional compensation.
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Investment Statistics – Descriptions
Statistic Description
Active Return Arithmetic difference between the manager’s return and the benchmark return over a specified period. Excess Return Arithmetic difference between the manager’s return and the risk-free return over a specified period.
Standard Deviation Represents the degree of variation, or dispersion, of a portfolio’s return in relation to its mean return. It is a measure of volatility or investment risk. Downside Risk A measure of the standard deviation, or volatility, of a portfolio's negative returns in relation to the mean of the negative returns over a specified
period. The higher the figure, the riskier the portfolio in negative performance environments. Sharpe Ratio Represents the excess return over the risk-free return divided by the standard deviation of the portfolio’s return. The ratio shows how well a portfolio
performs versus a risk-free investment. The higher the value, the better the portfolio’s historical risk-adjusted performance. Tracking Error A measure of the standard deviation of a portfolio's excess return over the return of appropriate market benchmark. Tracking error measures how
closely a portfolio follows or tracks the index to which it is benchmarked. Information Ratio A measure of a portfolio’s active return over its benchmark divided by the tracking error. A higher ratio indicates a manager’s ability to consistently
add active return relative to a benchmark. Beta A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematic risk. A beta
of 1.0 implies a portfolio is perfectly correlated to the market. Alpha A measure of the portfolio’s value added relative to a benchmark, given its level of systematic risk as measured by beta. It is a measure of the
portfolio's historical performance not explained by movements of the market, or a portfolio's non-systematic return. Consistency Also known as batting average, the percentage of quarters that a portfolio achieved a rate of return higher than that of its benchmark. The higher
the consistency figure, the more value a manager has contributed to the portfolio’s active performance. R-Squared Also known as the coefficient of determination, R-Squared (R2) represents the percentage of a portfolio's performance explained by the behavior of
the appropriate benchmark. A high R2 means a higher correlation of the portfolio's performance to that of the appropriate benchmark. Up Market Capture The ratio of a portfolio’s average return over the benchmark during periods of positive benchmark return. Higher values indicate better performance
in positive markets compared to the benchmark. Down Market Capture The ratio of a portfolio’s average return over the benchmark during periods of negative benchmark return. Lower values indicate better performance
(and better protection of capital) in down markets compared to the benchmark. Style Map Using returns-based style analysis, the style map gauges the adherence of a portfolio to its style mandate. The trend of the style plots identifies style
drift, or lack thereof. Private Equity Investments Internal Rate of Return (IRR)
An annualized money weighted return used primarily to measure performance of private equity investments. It represents the discount rate that makes the present value of the since inception paid-in capital and distributions associated with an investment equal to zero.
Investment Multiple (TVPI)
Also known as the total value paid-in capital. Multiple is calculated by dividing the fund’s cumulative distributions and net asset value by the paid-in capital. The TVPI shows an investor the fund’s total value as a multiple of its cost basis since inception.
Realization Multiple (DPI)
Also known as the distributions to paid-in capital (DPI) multiple. This is calculated by dividing the cumulative distributions by paid-in capital. It represents how much of an investor’s invested capital has been returned to investors. A fund has broken even when multiple is greater than 1.0.
RVPI Multiple (RVPI) Calculated by dividing residual value, or net asset value, by paid-in capital including fees paid and other expenses incurred. It measures how much of the fund’s return is unrealized and dependent on the market value of its investments.
PIC Multiple (PIC) Calculated by dividing paid-in capital by committed capital. This ratio allows a potential investor to see the percentage of a fund’s committed capital that has been drawn down to date.
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Data Source Acknowledgements, Links and Disclaimers
Bloomberg Barclays Global Indices, BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) or Bloomberg’s licensors own all proprietary rights in the BLOOMBERG BARCLAYS INDICES. For more information please visit https://www.bloomberg.com/professional/product/indices/bloomberg-barclays-indices/#/
ICE®BofAML® Bond Indices, © Copyright 2018 Intercontinental Exchange, Inc. ICE® and ICE® BofAML® are registered trademarks owned by Intercontinental Exchange, Inc. For additional information please visit https://www.theice.com/market-data/indices
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FTSE Russell & FTSE Nareit Indices, © Copyright FTSE Russell 2018; “FTSE Russell” is a trading name of FTSE International Limited (“FTSE”) and Frank Russell Company (“Russell”) and their respective subsidiary undertakings, which are members of the London Stock Exchange Group plc group. Nareit is the exclusive registered trademark of the National Association of Real Estate Investment Trusts. All rights in the Indexes vest in FTSE and Nareit. For more information please visit https://www.ftserussell.com/index-series/index-spotlights
S&P Dow Jones Indices, Copyright © 2018 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. For more information please visit https://us.spindices.com/index-literacy/
MSCI Indices, © Copyright 2018 by MSCI Inc. All rights reserved. MSCI Inc. and all other service marks referred to herein are the exclusive property of MSCI and its affiliates. All MSCI indices are the exclusive property of MSCI and may not be used in any way without express written permission of MSCI. For more information please visit https://www.msci.com/index-methodology
NCREIF, Copyright © 2018 National Council of Real Estate Investment Fiduciaries. Redistribution of any NCREIF data is not permitted without express written from NCREIF. For more information please visit https://www.ncreif.org/data-products/
HFRI® Indices, © 2018 Hedge Fund Research, Inc – All rights reserved. All data and content on HFR Database products are for your informational and personal use only. For more information please visit https://www.hedgefundresearch.com/hfri-index-methodology
Disclaimer: The analysis in this report was prepared by Fiduciary Investment Advisors, LLC, utilizing data from third parties and other sources including but not limited to FIA computer software and selected information in the FIA database. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the purchase, sale or disposition of individual securities. FIA disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. This report and the information contained herein was prepared solely for the internal business use of our clients. This report is confidential and cannot be reproduced or redistributed to any party other than the intended recipients without the expressed consent of FIA. FIA does not intend to benefit any third-party recipient of its work product or create any legal duty from FIA consents to the release of its work product to such third party. FIA provides a copy of its SEC Form ADV Part II to clients without charge upon request.
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