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Agenda
Investment Committee
April 27, 2017, 8:00 am
Join from PC, Mac, Linux, iOS or Android: https://zoom.us/j/674342182
Or iPhone one-tap (US Toll): +14086380968,674342182# or +16465588656,674342182#
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
WESTERN FRATERNAL LIFE ASSOCIATION DATA AS OF 3.31.2017
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
PORTFOLIO OVERVIEW
* Does not include the IMR release
2
Bond Investments*** Portfolio
Book Value (Millions) $248.6Book Yield* 4.42%Average Maturity** 8.4Effective Duration 6.2Average Quality A+Sector Allocation
** Calculated using average life for mortgage-backed and asset-backed securities
US Treasury 0.2% US Government Agency 6.2% US Corporate 43.8% Foreign, US Dollar Den. 6.4% Municipal 22.0% MBS - Agency 14.3% MBS - Non-Agency 0.5% CMBS - Agency 4.9% CMBS - Non-Agency 0.6% ABS 1.2%
*** All statistics calculated based upon book value.
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
PORTFOLIO CHANGE
3
* Does not include the IMR release
** Calculated using average life for mortgage-backed and asset-backed securities
Sector Allocation US Treasury 0.2% 0.2% 0.0% -0.3% US Government Agency 6.2% 6.4% -0.2% -1.6% US Corporate 43.8% 43.3% 0.5% 4.8% Foreign, US Dollar Den. 6.4% 6.4% 0.0% 0.0% Municipal 22.0% 22.2% -0.2% -1.3% MBS - Agency 14.3% 14.3% 0.0% -0.8% MBS - Non-Agency 0.5% 0.5% 0.0% -0.2% CMBS - Agency 4.9% 4.9% 0.0% -0.3% CMBS - Non-Agency 0.6% 0.6% 0.0% 0.0% ABS 1.2% 1.2% 0.0% -0.2%
Quarterly Change
Annual Change
*** All statistics calculated based upon book value.
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
Aaa 1.9%Aa 2.9%A 1.1%Baa 0.0%Ba 0.0%B 0.1%Below B 0.0%NR 1.2%
S&P Ratings for Bonds NR by Moody's
AAA 0.6%AA 2.5%A 3.1%BBB 0.6%BB 0.0%B 0.2%Below B 0.2%NR 1.2%
4
Most of the NR bonds carry either an AAA or AA rating by the other agency. There are three bonds in the portfolio that are notrated by either Moody's or S&P. Below is a breakdown of the bonds in the NR category.
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
5
PURCHASES AND SALES 1Q2017
Purchases (excludes Swaps)Trade Date Cusip Name Coupon Maturity Yield Par Price Cost Duration Rating
Purchases Using Sale Proceeds - SwapsTrade Date Cusip Name Coupon Maturity Yield Par Price Cost Duration Rating
Purchases using Sale Proceeds - Swaps 0.00% -$ -$ 5.0
Total Bonds Purchased 3.71% 1,760,000$ 1,902,181$ 9.4
Bonds Sold (excludes Swaps)
Trade Date Cusip Name Coupon Maturity Yield Par Price Est. Cost
Basis ProceedsEstimated Gain/Loss
New Sales -$ -$ -$ -$
Bonds Sold as Swap Transactions Cost EstimatedTrade Date Cusip Name Coupon Maturity Yield Par Price Basis Proceeds Gain/Loss
Bonds Sold as Swaps 0.00% -$ -$ -$ -$
Total Bonds Sold 0.00% -$ -$ -$ -$
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
LARGEST HOLDINGS
New Purchase Description Book Value Moody's S&P Fitch Ratings Change
JOHNSON (S.C.) & SON 2,416,935$ A A-DEERE & COMPANY 2,108,245$ A2 A ASYSCO CORPORATION 2,072,099$ A3 BBB+DEPT OF TRANS U.S. (STEP UP) 2,000,000$ WRMICHIGAN ST 1,998,153$ Aa1 AA- AATOYOTA MOTOR CREDIT CORP 1,983,988$ Aa3 AA-BECTON DICKINSON 1,974,696$ Baa2 BBB+ELI LILLY & CO 1,932,481$ A2 AA- AuCOCA-COLA REFRESH USA 1,855,441$ WR AA- A+MERCK & CO 1,842,699$ A1 AA AuFIDELITY INVESTMENT LLC 1,838,567$ A2 A+ A+MINNESOTA LIFE INSURANCE 1,814,119$ A2 A- A+ROYAL BANK OF CANADA 1,783,243$ Aa3 AA- AAASTRAZENECA 1,753,450$ A3 A- AuWELLS FARGO & COMPANY 1,750,047$ A3 A- A+TEVA PHARMACEUTICAL 1,716,600$ Baa2 BBB BBBuAPPLE INC 1,684,381$ Aa1 AA+CATERPILLAR INC 1,669,884$ A3 A AAPPLIED MATERIALS INC 1,665,061$ A3 A-PEPSICO INC 1,660,511$ A1 A AuAUSTIN TX 1,601,053$ Aaa AAA AAATARGET CORP 1,593,313$ A2 A A-PHILIPS ELECTRONICS NV 1,553,933$ Baa1 BBB+ A-uINTEL CORP 1,518,697$ A1 A+ A+TEXAS STATE OF STDNT LN G.O. 1,485,604$ Aaa AAACONNECTICUT STATE QUAL SCH CONST 1,472,082$ Aa3 AA- AA-JOHN SEVIER COMB CYCLE 1,429,290$ Aaa AA- AABLOUNT COUNTY TN PUB BLDG G.O. 1,370,994$ WR A+ WDWYETH 1,358,862$ A1 AA A+uTRANS-CANADA PIPELINES 1,324,431$ A3 A-STATE STREET CORP 1,319,660$ A1 A AA-
6
B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9
Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.
WATCH LIST
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Moody's S&P FitchCusip Issue Coupon Maturity Book Par Market NAIC Change Rating Outlook Change Rating Outlook Change Rating Outlook
"For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no longer included) have
assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column contains the rating
internally assigned by Advantus Capital Management, Inc. NR = Not Rated.
Australia 15.2 % United Kingdom 8.4 Germany 4.7 Bermuda 3.0 Turks and Caicos Islands 1.7 Ireland 1.6 Denmark 1.4 Belgium 1.4 New Zealand 1.2 Other 1.3
Market Value by Sector
Allocation Acq Yield" Eff Dur
Financial Institutions 32.1 % 4.40 % 6.10
Industrial 52.1 3.96 6.45
Utility 14.4 3.77 7.94
ABS 1.3 3.53 4.91
100.0 % 4.06 % 6.53
Sector and Country Allocation Market Value: $32,657,500as of 03/31/17
* Weighted average.
Country % weighted by market value.
Slight discrepancies may appear due to rounding.
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Current Quarter
2.6
1.6
2.6
4.3
14.2
22.8
12.2
12.1
8.2
10.1
9.2
Less than 1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10+
2016
2.8
1.7
1.5
6.0
2.5
31.4
14.1
12.5
7.3
10.6
9.6
Less than 1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10+
2015
2.9
3.2
2.7
4.0
5.7
14.4
25.1
16.2
11.4
6.8
7.7
Less than 1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10+
2014
0.0
0.0
4.2
3.5
5.4
8.5
21.1
29.3
13.7
3.3
11.1
Less than 1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10+
Effective Duration Distribution
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Current Quarter
34.3%
65.7
0.0
0.0
0.0
0.0
0.0
0.0
NAIC 1
NAIC 2
NAIC 3
NAIC 4
NAIC 5
NAIC 6
FMC
FMR
2016
35.9%
64.1
0.0
0.0
0.0
0.0
0.0
0.0
NAIC 1
NAIC 2
NAIC 3
NAIC 4
NAIC 5
NAIC 6
FMC
FMR
2015
40.3%
58.1
1.6
0.0
0.0
0.0
0.0
0.0
NAIC 1
NAIC 2
NAIC 3
NAIC 4
NAIC 5
NAIC 6
FMC
FMR
2014
43.2%
56.8
0.0
0.0
0.0
0.0
0.0
0.0
NAIC 1
NAIC 2
NAIC 3
NAIC 4
NAIC 5
NAIC 6
FMC
FMR
NAIC Ratings Changes
CUSIP Issue Name Par Value Coupon Maturity
Date Previous
Quarter Rating Current
Quarter Rating Change
There were no NAIC Ratings changes during this period.
NAIC Ratings
The FMC and FMR designations represent holdings in structured securities, primarily non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-
backed securities (CMBS). The NAIC designation for carrying value for both FMC and FMR issues is user-defined.
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Credit Review Summary Totals
Security Type Status Book Value % of Book
Value Market Value % of Market
Value Status Description
Corporate Watch Performance or credit fundamentals have weakened and may become serious
Serious There is a payment obligation at risk
Default A default has occurred, which may be covenant, monetary or other obligation
Bankrupt A bankruptcy filing has occurred
Surveillance 928,571 2.89 981,336 3.00 Performance or credit fundamentals are stable - for monitoring purposes only
Securitized Watch Performance or credit fundamentals have weakened and may become serious
Serious There is a payment obligation at risk
Economic Loss An economic loss has occurred
Bankrupt A bankruptcy filing has occurred
Surveillance 160,000 0.50 153,355 0.47 Performance or credit fundamentals are stable - for monitoring purposes only
AAA 0.0 %
AA+ 0.0
AA 3.5
AA- 0.0
A+ 5.0
A 9.1
A- 15.5
BBB+ 16.4
BBB 28.2
BBB- 22.3
Below Investment Grade 0.0
Portfolio Fixed Income Credit Ratings
Weighted Average Quality Rating = BBB+
Credit Ratings
Security level detail provided on Credit Review Holdings Report
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Credit Review Holdings
Corporate $928,571 $928,571 $981,336
Status+ Sector CUSIP Issue Name Coupon
Maturity Date Current Par
Book Value
Market Value Moody's S&P
Other Rating" NAIC Placement
Surveillance Industrial G8967#AN3Triton Container
International Ltd4.89 % 10/31/2024 $500,000 $500,000 $535,365 NR NR BBB3 2FE Private
Surveillance Industrial G8967#AM5Triton Container
International Ltd4.28 10/31/2022 428,571 428,571 445,971 NR NR BBB3 2FE Private
Securitized $160,000 $160,000 $153,355
Status+ Sector CUSIP Issue Name Coupon
Maturity Date Current Par
Book Value
Market Value Moody's S&P
Other Rating" NAIC Placement
Surveillance ABS 89690EAE7 TRMF 2014-1A A2 4.09 % 06/15/2032 $160,000 $160,000 $153,355 NR A A2 1FE 144A
+Definitions:
Surveillance - Performance or credit fundamentals are stable - for monitoring purposes only.
Watch - Performance or credit fundamentals have weakened and may become serious.
Serious - There is a payment obligation at risk.
Economic Loss - An economic loss has occurred (Typically only used for Structured securities).
Default - A default has occurred, which may be covenant, monetary, or other obligation.
Bankrupt - A bankruptcy filing has occurred (Typically only used for Corporate securities).
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
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Transaction Summary
Purchases
Par Value Book Value Spread* Other Rating" Acq Yield* Eff Dur*
Current Quarter $1,500,000 $1,500,000 284 BBB- 4.66 5.9
2017 YTD 1,500,000 1,500,000 284 BBB- 4.66 5.9
2016 5,490,000 5,490,000 200 BBB+ 4.10 9.2
2015 7,040,000 7,088,473 182 BBB+ 3.83 N/A
Sales
Par Value Book Value Total Amt Less AI Other Rating" Market Yield* Eff Dur* Gain/Loss
Current Quarter N/A N/A N/A N/A N/A N/A N/A
2017 YTD N/A N/A N/A N/A N/A N/A N/A
2016 500,000 500,000 523,730 A- 3.14 6.5 23,730
2015 N/A N/A N/A N/A N/A N/A N/A
Other Disposals - Current Quarter
Par Value Book Value Total Amt Less AI Other Rating" Market Yield* Eff Dur* Gain/Loss
There were no transactions for these periods.
* Weighted average.
Treasuries are included in the Transaction Summary.
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
86801FA@5 Sunstone Hotel Investors Inc 01/10/2028 4.79 % 4.79 % 01/10/2017 8.4 $500,000 $500,000 2Z NR NR BBB- 300
83413UA#7 Solar Capital Limited 05/08/2022 4.60 4.60 02/15/2017 4.6 1,000,000 1,000,000 2Z NR NR BBB- 276
CUSIP Issue Name Price Maturity
Date Coupon Market
Yield Trade Date
Eff Dur Par Value Book Value NAIC Moody's S&P
Other Rating"
Gain/ Loss
There are no sales for this period.
CUSIP Issue Name Price Maturity
Date Coupon Trade Date Par Value Book Value NAIC Moody's S&P
Other Rating"
Gain/ Loss
There are no other disposals for this period.
Transaction Statement Detail
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
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Fixed Income Holdings 4.06% $32,109,342 $32,657,500 $328,257 100.0%Acq Yield Par Value Market Value Accrued Income % of Portfolio
Fixed Income Detail Holdings
ABS 3.53% $453,333 $453,311 $438,932 4.9
CUSIP Issue Name Maturity
Date Coupon Acq
Yield Par Value Book Value Market
Value Trade Date Moody's S&P
Other Rating" NAIC Placement
Eff Dur
37952UAD5 SEACO 2014-1A A1 07/17/2024 3.190 % 3.22 % $293,333 $293,311 $285,577 07/23/2014 NR A A 1FE 144A 3.3
89690EAE7 TRMF 2014-1A A2 06/15/2032 4.085 4.12 160,000 160,000 153,355 05/01/2014 NR A A 1FE 144A 7.9
78488@AE5 American Core Realty Fund LP 04/01/2028 3.890 % 3.89 % $167,000 $167,000 $169,782 03/10/2016 NR NR A- 1 Private 8.7
78488@AF2 American Core Realty Fund LP 04/01/2028 3.890 3.89 333,000 333,000 338,548 03/10/2016 NR NR A- 1 Private 8.7
04015CAA6 Ares Finance Co LLC 10/08/2024 4.000 4.21 700,000 690,518 655,540 10/01/2014 NR BBB+ BBB+ 2FE 144A 6.2
04317@AP3 Arthur J Gallagher & Co 06/24/2026 4.360 4.36 350,000 350,000 353,525 06/04/2014 NR NR BBB- 2 Private 7.4
151895C@6 CenterPoint Properties Trust 05/27/2022 3.490 3.49 250,000 250,000 253,555 05/05/2015 NR NR BBB 2 Private 4.6
18055#AM4Clarion Lion Properties Fund
LLC02/14/2024 4.600 4.60 315,000 315,000 342,178 12/05/2013 NR NR A- 2 Private 5.9
18469PA@9ClearBridge Energy MLP
Opportunity Fund02/07/2023 3.870 3.87 461,916 461,916 481,252 01/17/2013 NR NR AA 1FE Private 5.2
18469QA#5ClearBridge Energy MLP
Opportunity Fund03/28/2025 4.080 4.08 260,099 260,099 271,543 01/31/2013 NR NR AA 1FE Private 6.8
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
LP09/03/2029 4.210 4.21 425,000 425,000 434,490 06/04/2014 NR NR A+ 1FE Private 9.6
74986@AN1 RREEF America REIT II Inc 01/15/2024 4.330 4.33 425,000 425,000 454,631 10/16/2013 NR NR A- 1 Private 5.8
83413UA#7 Solar Capital Limited 05/08/2022 4.600 4.60 1,000,000 1,000,000 1,055,880 11/23/2016 NR NR BBB- 2FE Private 4.5
85253#AC5 STAG Industrial Inc 12/30/2026 4.420 4.42 700,000 700,000 708,323 11/20/2014 NR NR BBB- 2 Private 7.8
862121A*1 STORE Capital Corp 11/21/2022 4.950 4.95 425,000 425,000 456,697 10/30/2015 NR NR BBB- 2FE Private 4.8
86801FA@5 Sunstone Hotel Investors Inc 01/10/2028 4.790 4.79 500,000 500,000 518,070 10/17/2016 NR NR BBB- 2Z Private 8.3
89147LE*7Tortoise Energy Infrastructure
Corp09/27/2020 3.780 3.78 300,000 300,000 312,906 09/17/2013 NR NR AA 1FE Private 3.3
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
22576CE#4 Crescent Point Energy Corp 06/12/2023 3.780 3.78 150,000 150,000 151,218 05/23/2013 NR NR BBB- 2 Private 5.4
12656*AG7 CSL Limited 03/26/2023 3.200 3.20 560,000 560,000 565,051 03/05/2013 NR NR A- 1 Private 5.4
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
G2615@AB0 DCC PLC 04/25/2023 4.040 4.04 500,000 500,000 517,060 02/28/2013 NR NR BBB 2 Private 5.3
Q3300*AB9 DuluxGroup Pty Limited 09/18/2024 4.130 4.13 150,000 150,000 154,188 06/18/2014 NR NR BBB 2 Private 6.4
29252BAA7 Enbridge Southern Lights 06/30/2040 3.980 3.98 447,577 447,577 441,409 07/25/2014 NR NR BBB 1 Private 7.5
30571#AA0 Fairview Health Services 11/15/2043 4.160 4.16 961,289 961,289 984,581 07/23/2015 NR NR A 1 Private 9.6
Q3915*AC4 Fletcher Building Ltd 07/20/2026 3.700 3.70 250,000 250,000 244,410 04/27/2016 NR NR BBB 2 Private 7.7
Q3917#AB0FLINDERS PORT HOLDINGS
PTY LTD09/18/2026 4.270 4.27 175,000 175,000 178,624 06/12/2014 NR NR BBB 2FE Private 7.7
34487#AD9Football Club Term Notes
2029 Trust10/20/2029 3.970 3.99 650,000 650,000 660,036 09/24/2014 NR NR A- 1FE Private 9.7
30288*AA8 Freeport LNG 03/31/2038 4.540 4.54 1,000,000 1,000,000 1,020,100 11/16/2016 NR NR BBB 2FE Private 9.2
Q4557*AB7 Healthscope Limited 05/23/2026 4.050 4.05 200,000 200,000 201,324 03/22/2016 NR NR BBB 2FE Private 7.5
45672BA*8 Informa plc 10/16/2022 3.840 3.84 375,000 375,000 382,016 07/16/2015 NR NR BBB- 2 Private 4.9
48121@AC5 JRD Holdings LLC 03/27/2021 3.470 3.47 160,000 160,000 163,155 03/19/2014 NR NR BBB- 2FE Private 2.4
G5222#AE0 Keller Group plc 12/16/2024 4.170 4.17 275,000 275,000 282,840 09/19/2014 NR NR BBB 2 Private 6.5
497266B*6 Kirby Corp 02/27/2023 3.290 3.29 250,000 250,000 248,768 11/14/2012 NR NR BBB 2 Private 5.3
G6164#AC2 MITIE Group plc 12/16/2022 3.850 3.85 500,000 500,000 518,200 11/14/2012 NR NR BBB+ 2 Private 5.1
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
Company Pty Ltd09/14/2025 3.730 3.73 125,000 125,000 123,781 05/05/2015 NR NR BBB 2 Private 7.2
Q6518#AA8 NSW Ports 04/29/2025 3.340 3.34 100,000 100,000 96,741 03/19/2015 NR NR BBB 2 Private 6.9
Q6518#AE0 NSW Ports 11/04/2028 3.860 3.86 220,000 220,000 212,914 10/14/2015 NR NR BBB 2 Private 9.0
N6704@AK5 Oiltanking GMBH 10/23/2022 3.970 3.97 500,000 500,000 517,125 10/05/2012 NR NR BBB 2 Private 4.9
G7815@AG6 SAP AG 11/15/2022 3.180 3.18 1,000,000 1,000,000 1,014,790 11/02/2012 NR NR A 1 Private 5.1
82894*AY3Simplot (JR) Company Senior
Notes02/19/2031 4.210 4.21 500,000 500,000 490,780 01/29/2016 NR NR BBB 2 Private 10.3
85915#AF8 Stericycle Inc 12/12/2019 2.680 2.68 250,000 250,000 252,185 09/28/2012 NR NR BBB+ 1 Private 2.6
G8967#AM5Triton Container International
Limited10/31/2022 4.280 4.28 428,571 428,571 445,971 10/04/2012 NR NR BBB- 2FE Private 2.9
G8967#AN3Triton Container International
Limited10/31/2024 4.890 4.89 500,000 500,000 535,365 10/04/2012 NR NR BBB- 2FE Private 4.8
90272*AA0United Healthcare Services
Inc05/15/2033 3.500 3.53 225,571 225,571 221,477 05/01/2013 NR NR A- 1 Private 7.7
91845#AA2 Verizon Communications Inc 05/15/2035 3.812 3.84 240,290 240,290 234,264 04/29/2015 NR NR BBB+ 2 Private 8.5
97786#AJ1 Wolseley PLC 09/01/2022 3.430 3.43 450,000 450,000 457,763 06/04/2015 NR NR BBB+ 2FE Private 4.9
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
018522H#2 ALLETE Inc 09/15/2021 3.020 % 3.02 % $500,000 $500,000 $507,355 06/06/2014 NR NR A 1 Private 4.1
G0369@AV8Anglian Water Services
Limited11/26/2023 4.990 4.99 500,000 500,000 541,945 10/16/2013 NR NR BBB- 2FE Private 5.6
03842*AE6 Aqua Pennsylvania 12/01/2041 3.790 3.79 500,000 500,000 462,665 10/23/2012 NR NR A+ 1 Private 15.1
048303E*8 Atlantic City Electric Co 12/01/2025 3.500 3.50 500,000 500,000 499,595 11/19/2015 NR NR A- 1 Private 7.3
28501*AT2Electric Transmission Texas
LLC11/19/2025 3.600 3.60 100,000 100,000 99,602 05/24/2013 NR NR BBB+ 2 Private 7.2
96930*AA1 FirstEnergy Corp 06/15/2025 3.720 3.75 276,472 276,472 281,122 05/21/2015 NR NR BBB- 2 Private 3.8
P4368#AC1 FortisTCI Limited 05/02/2031 5.140 5.14 500,000 500,000 541,960 03/16/2016 NR NR BBB- 2 Private 7.2
39121JB@8 Great River Energy 10/01/2035 4.110 4.11 500,000 500,000 500,470 11/05/2014 NR NR A- 1 Private 10.9
73020*AD5 PNG Companies LLC 12/19/2017 2.430 2.43 350,000 350,000 351,008 11/07/2013 NR NR BBB- 2 Private 0.7
Q3629#AN3 SA Power Networks Gtd 08/10/2031 3.310 3.31 1,000,000 1,000,000 920,970 05/09/2016 NR NR A- 1 Private 11.1
" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no
longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column
contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating
25
Advantus Update
26
Advantus Update
• $37.6 billion in total assets under management as of 3/31/17
• Strong 2016 sales with $2+ billion in new assets
• Total Return Fixed Income team launched the Strategic Credit Income strategy
• Invitations have been sent for 2017 Advantus Investment Meeting – June 14-16
27
$10
$15
$20
$25
$30
$35
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Focus On Institutional InvestorsResults in deep understanding of client needs
Market Value Assets Under Management as of 3/31/17. *Commercial Mortgage Lending is not an advisory service and does not involve securities investing.
By Security Class
Types of Clients
Total Assets: $37.6B
• Insurance Companies• Public and Corporate Retirement Funds• Public and Corporate Operating Funds• Endowments/Foundations• Retail Funds
Public Fixed Income $21.3B
Private Placement Fixed Income $3.8B
Specialty Equity $8.6B
Commercial Mortgage Loans* $3.2B
Alternatives $700 M
28
Appendix
29
Professional Experience Degrees and Designations
Bob Diedrich, CFAVice President & Lead Portfolio Manager, Insurance Advisory
Bob manages portfolios for Insurance Advisory clients and serves as the Lead Portfolio Manager of Advantus’ insurance asset management team. His responsibilities include developing investment strategies, selecting securities and sector allocations, buy/sell decisions, credit reviews and performance management. Bob brings a breadth of experience that benefits his clients and the investment team overall, including previous work in private placements and asset/liability and asset allocation analysis for insurance accounts. His experience in the nuclear power arena – in the U.S. Navy and private industry - has contributed to Advantus’ energy sector analysis, as well.
Bob is a CFA Charterholder and a member of the CFA Institute and CFA Society of Minnesota. Bob also serves on the investment committee of a Minnesota based foundation.
– Advantus Capital Management Senior Portfolio ManagerInvestment AnalystQuantitative AnalystRelationship Manager
– Active in the investment industry since 2000
– Bachelor of Science in Finance Excelsior College
– Chartered Financial Analyst
3358530
Professional Experience Degrees and Designations
Linda SauberVice President and Director Client Service
Linda leads client service at Advantus and is involved in client portfolio management. She oversees the client service organization, client reporting and long-term success of client relationships. She also chairs the Advantus Investment Meeting, an educational conference for our clients, focused on investment themes and issues of the day. Linda has focused on fixed income investments throughout her career, having held positions in fixed income trading, portfolio management and client service.
– FAF Advisors Inc. (U.S. Bancorp)Senior Portfolio Manager
– Advantus Capital ManagementSenior Fixed Income TraderPortfolio Management Assistant
– Active in the investment industry since 1984
– Master of Business Administration University of St. Thomas
– Bachelor of Arts in Finance and EconomicsAugsburg College