Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
1) Call to Order
2) Roll Call
CITY OF BIRMINGHAM RETIREE HEALTH CARE FUND INVESTMENT COMMITIEE
FRIDAY, JUNE 12, 2020 FOLLOWING 8:15 A.M . RETIREMENT BOARD MEETING
CONFERENCE ROOM 203
3) Announcements
4) Consent Agenda
All items listed on the consent agenda are considered to be routine by the Retiree Health Care Fund Investment Committee and will be enacted by one motion and approved by a roll call vote. There will be no separate discussion of these items unless a committee member so requests, in which event the item will be removed from the general order of business and considered as the last item under new business.
A) Approval of Retiree Health Care Fund Investment Committee Meeting minutes of March 13, 2020. B) Approval of Retiree Health Care Fund Expenses of $36,451. 71 for the period of January 1, 2020 through June 30,
2020. C) Resolution to receive the Summary of Assets for the period ending April 30, 2020 with a total market value of
$36,298,603. 4/30/2020 3/31/2020 4/30/2019
Apex (Fiera Capital)- SMID-Cap Growth 2,484 ,739 6.8% 2,109,588 6.2% 3,769,059 10.2% Bahl & Gaynor - Large-Cap Growth 3,980 ,478 11.0% 3,562,942 10.4% 2,781,302 7.5% Bradford & Marzec - Fixed Income 5, 199,990 14.3% 5,333,488 15.6% 4,383,243 11.9% Bramshill Investments - Fixed Income 1,260,175 3.5% 1,194,344 3.5% 1,266 ,413 3.4% C. S. McKee - Fixed Income 2,394,832 6.6% 2,548,522 7.5% 1,890,149 5.1% Cavendish Managed Futures 1,050,292 2.9% 1,046,052 3.1% 1,842,364 5.0% Gabelli - Small-Cap Value 2,011,164 5.5% 1,840,414 5.4% 3, 179,568 8.6% Goldman Sachs - Alternative 0 0.0% 0 0.0% 149 0.0% Graham Absolute Return - Hedge Fund 1,012,190 2.8% 989,435 2.9% 827,141 2.2% Lazard - International Equity 2,918,071 8.0% 2,744,056 8.0% 3,720,433 10.1% Lazard - Emerging Market 1,291,297 3.6% 1,205,460 3.5% 1,980,839 5.4% Seizert Capital - Mid Cap Value (Liquidated) 0 0.0% 0 0.0% 2,673,871 7.2% Cash (Reserved for Mid Cap Index) 0 0.0% 2,450,668 7.2% 0 0.0% Vanguard Mid-Cap ETF (VO) 2,639,955 7.3% 0 0.0% 0 0.0% Vanguard S&P 500 ETF (VOO) 5,313,026 14.6% 4,710,847 13.8% 5,264 ,799 14.2% Westwood Holdings - Large-Cap Value 3,782,969 10.4% 3,431,404 10.1% 2,564 , 125 6.9% White box Multi-Strategy - Hedge Fund 959,425 2.6% 944,236 2.8% 827 ,141 2.2%
Total 36,298,603 100.0% 34,111 ,456 100.0% 36,970,596 100.0%
5 Investments
A) Investment Consultant Report
6} Unfinished Business
RHC Fund Committee June 12, 2020 Page 2
7) New Business
A) To concur in the recommendation of the Retirement Investment Committee and the UBS Financial Services/Flagship Financial Partners team to terminate the relationship with Bahl & Gaynor; to enter into an agreement with Polen Capital Management, LLC to invest those funds in their Polen Focus Growth strategy for the Retiree Health Care Fund ; to authorize Secretary-Treasurer Mark Gerber to execute the agreement on behalf of the Retiree Health Care Fund Investment Committee; to direct Comerica Bank to create a new large-cap growth equity fund account for the Retiree Health Care Fund to be managed by Polen Capital Management, LLC.
B) To concur in the recommendation of the Retirement Investment Committee and the UBS Financial Services/Flagship Financial Partners team to terminate the relationship with Lazard Capital in both the developed international and emerging market strategies; to transfer those funds into the MFS International Diversification I mutual fund for the Retiree Health Care Fund; to direct Comerica Bank to create a new international account for the Retiree HealthCare Fund .
C) Resolution to approve the consent of assignment of the Birmingham Retiree Health Care Fund contract with Tortoise Credit Strategies to R Squared BM LLC and to authorize Finance Director Mark Gerber to sign the consent of assignment on behalf of the City.
8) Meeting Open to the Public for Items Not on the Agenda
9) Adjournment
Mark Gerber Secretary/Treasurer Employees Retirement Board
Individuals requiring accommodations, such as interpreter services, for effective participation in this meeting should contact the City Clerk's Office at (248) 530-1880 at least one day in advance of the public meeting.
Las personas que requieren alojamiento, tales como servicios de interpretacion, la participacion efectiva en esta reunion deben ponerse en contacto con la Oficina del Secretario Municipal al (248) 530-1880 por lo menos el dfa antes de la reunion publica . (Title VI of the Civil Rights Act of 1964).
---------------------------------- ------- -
MINUTES OF THE REGULAR MEETING OF THE RETIREE HEAL TH CARE FUND INVESTMENT COMMITTEE
HELD MARCH 13, 2020
Christopher Conti called the meeting to order at 8:57 A.M.
PRESENT: Pierre Boutros, Christopher Conti , Mark Gerber, Ruth Rowland , Joseph Valentine
ALSO PRESENT: David Gasper, UBS; Pierre Boutros; Pete Kauffman , Retirement Board
01-2020
Motion by Conti : Second by Valentine:
To Approve the Consent Agenda:
To approve the Retiree Health Care Fund Investment Committee meeting minutes of December 13, 2019; To approve the Retiree Health Care fund expenses of $45,375.72 for the period of December 14, 2019 through February 29, 2020; To receive the Summary of Assets for the period ending January 31 , 2020 with a total market value of $39,944,930.
Boutros: Aye Conti : Aye Gerber: Aye Rowland : Aye Valentine: Aye
02-2020
David Gasper presented the Investment Consultant report.
03-2020
Motion by Rowland : Second by Valentine:
To concur the recommendation of the Retirement Investment Committee and Investment Consultant Steve and David Gasper to direct Comerica Bank to open a trust
A
account in the Retiree Health Care Fund for a mid-cap index fund to be managed by Vanguard; to direct Comerica Bank to transfer funds from recently liquidated Seizert Capital's mid-cap value account into a Vanguard Mid-Cap ETC (VO) on a weekly basis as follows : transfer $625,000 the first week; transfer $625,000 the second week; transfer $625,000 the third week; and , transfer the remaining funds the fourth week.
Ayes: 5 Nays: 0
Resubmitted submitted,
Thelma Golden Treasury Consultant
Retiree Health Care Fund Expenses 1 /1 /2020 - 6/30/2020
Date Name Purpose Amount
41812020 Bahl & Gaynor Investment Management $ 2,672.16 Period of 1 /1 /2020 - 3/3112020
4/13/2020 C.S . McKee Investment Management $ 1,785.80 Period ending 6/30/2020
4/22/2020 Fiera Capital Investment Management $ 2,900.61 Second Quarter 2020
4/21/2020 Gamco Investment Management $ 4,596.00 Period of 4/1 /20 - 6/30/2020
4/10/2020 Westwood Trust Investment Management $ 6,802 .54 Period Ending 3/31/2020
4/9/2020 Lazard Investment Management $ 4,449.22 Period of 4/01 /2020 - 6/30/2020
4/30/2020 Tortoise Investment Management $ 3,230.79 Period of 1 /01 /2020 - 3/31 /2020
1/23/2020 UBS Investment Consultant $ 6, 139.58 Period of 1 /01 /2020 - 3/31 /2020
4/28/2020 Comerica Custodia l/Investment Custodial Services/market value fees $ 3,875.01 Management Services Period of 1 /1 /2020 - 3/31 /2020
TOTAL $ 36,451.71
~4B
Apri l 8, 2020
Mr. Mark Gerber
The City of Binningham
1 5 l Martin Street
P.O. Box 300 l
Bahl Gaynor Investment Counsel
Acct: 1055053143
Code: bers-2
Mgr: Scott D. Rodes
State Res idence : MI
Birmingham , Ml 480 12-300 l
MANAGEMENT FEE: The City of Birmingham Retirees Health Care Fund
3/31/2020 Market Value : $ 3,562,873.63
Quarterly Fee Based On:
S 3,562,874 @ 0.30% per ann um $ 2,672. 16
Quarterly Fee: $ 2,672.16
For the Period l / l /2020 through 3/3 l /2020
1 f you are making a payment:
Mail payment to our lockbox address: Bahl & Gaynor I Lockbox, P. 0. Box 640688, Cincinnati, Ohio 45264-0688 For proper processing , indicate ei th er the code or the account number on all payments .
Wire/ACH payments arc ava il ab le. In fo rmation provided upon request.
For address changes , questions , or concerns, please contact: Christi na Lannan @ 5l3.618.4018 or email clannan@bah l-gaynor.com
Bahl & Gaynor Main Phone Number: 513.287.6100
7 3 L - fico o. o oo - ~~>=1 . o.;). o o
CSM Advisors, LLC CSM Advisors, LLC PO Box 779086 Chicago, IL 60677-9086
4 12 I 566-1234 866 I 69 1-3074 FAX Direct bi ll ing inquiries to: Kel ly Lesko ([email protected])
Client Assets
90705 Birmingham Employees' Retirement System
90706 City of Birmingham Retiree Health Care Fund
Fee Calculation (k< <chduk Fu .. ~~il
$0 to
$25,000,000 to
$50,000,000 to
$100,000 ,000 to
fncurn~· \'l~\11·)
$25,000,000
$50,000,000
$100,000,000
$10,000,000 ,000
An1t1((1/i::ed Fee
Calc11/ured ldj11s1ment
Q1wr1afr f I'<' H·ith Adiu)fme111
Discount Calculation
% of Client Assets to tal assets
90705 Birm ingham Employees' Retirement System $4,070,493 61.5%
90706 Ci ty of Birmingham Retiree Health Care Fund $2,551 , 142 38.5%
Quarterly Advisory Fee $6,621,635
0.350%
0.300%
0.250%
0 .200%
$4 ,070 ,493.40
$2,55 1, 141.68
$6,621 ,635.08
$23,175.72
$0.00
$0 .00
$0.00
$23,175.72
$5,793.93
($1 ,158.79)
$4,635.14
Gross Fee Discount Net Fee $3,561 .68 20 .0% $2,849.35
$2,232.25 20.0% $1 ,785.80
$5,793.93 $4,635.14
000 -8'0~. oa-.oo
April 22, 2020
~ FrE RA(APITAT,
(UBSTA 1055073997) Birmingham Employees Retirement System, City of
(UBSTA 1055074004) City of Birmingham Retiree Healthcare System
151 Martin Street
Birmingham, Ml 48009
Account Values at March 31 , 2020
Quarterly Fee@ .55% per annum
Quarterly Fee@ .55% per annum
s~nd a check payable to: Fiera Capital Inc. Aun : Myron Charas
I 0050 Innovati on Dri ve. Suite I 20 Dayton , O H 45342
Billing inqu iries should be directed to: Myron Charas Bi! linqFCl@fieracapita l.com 11K:hnrn<:>j:. ti-.·r:-tcJpit:tl.com
(937) 388-1 ~ 37
Fiera Capital Inc. Second Quarter 2020
Statement of Management Fees
Market Value
Account3997 $4,261 ,828.74
Account 4004 $2, 109,535.45
Account3397
Account4004
Total
Fee Due and Payable
Quarterly Fee
$5,860.01
$5,860.01
$2,900.61
$2,900.61
$8,760 .63
$8,760.63 1
ACH/ Wire Instructions: Ci ti Pri va te Bank I Court Square, 22 nd Floor Long Is land City, NY I I 120 Routing#: 021000089 Acct.#: 4974013748 Account Name: Fiera Capital Inc.
7 3 c,. - y-&, 6 - coo - ?iv~. 6{, 00
GA M CO ASSET MANAGEMEN T
Mr. Mark Gerber
City of Birmingham
Ass istant Finance Director
151 Martin Street
PO Box 3001
Birmingham, Ml 48012-3001
INVOICE FOR INVESTMENT MANAGEMENT SERVICES
PERIOD UNDER MANAGEMENT: April 1 - June 30, 2020
Portfolio Values
89507 City of Birmingham Retiree Health Care
Fee Basis
1.000% Of First$40,000,000
Current Amount Due
S9507 City of Birmingham Retiree Health Care Fund-Smal l Cap
Current Amount Due $4,596
Please make checks payable to Gamco Investors, Inc.
03/31/2020
One Corporate Center Rye , NY 10580-1422
t 914 .921 .5000 GABELLI COM
April 21 , 2020
$1 ,838,612
$4,596
$4 ,596
April 21 , 2020
20200331-154-5620-A
331
CITY OF BIRMINGHAM RETIREE HEAL TH CARE FUND
Invoiced Fee Summary
Balance From Previous Invoice Payments Received Current Quarterly Fees
Total Amount Due
Detach and return portion below in the enclosed envelope .
Westwood Trust 200 Crescent Court, Ste. 1200 Dallas TX 75201
DA
Please remit payment to:
Westwood Trust Attn: Trust Accounting Group 200 Crescent Court, Ste. 1200 Dallas TX 75201
200 Crescent Court, Ste. 1200 Dallas TX 75201
Account: Invoice: Invoice Date: Page 1 of 2
41-2031-01-5 5001033
April 10, 2020
$4,694.22 -4,694.22 6,802.54
$6,802.54
DA
Account: 41-2031-01-5 Invoice: 5001033 Invoice Date: April 10, 2020
Amount Due: $6,802.54
Amount Paid:
PAYMENT DUE 15 DAYS FROM INVOICE DATE
City of Birmingham Attn : Mark Gerber, CPA P.O. Box 3001, 151 Martin Birmingham Ml 48012
CITY OF BIRMINGHAM RETIREE HEAL TH CARE FUND
Current Quarterly Fees To 03/31/2020
Total Relationship Market Value: $3,430,636.20
65 BP - ETFS AND MFS EXCLUDED Based on $4, 186, 175.41 in value: First $4, 186, 175.41 @ 0.650 %
200 Crescent Court, Ste. 1200 Dallas TX 75201
Account: Invoice: Invoice Date: Page 2 of 2
41 -2031-01-5 5001033
April 10, 2020
27,210.14
Annual Total $27,210.14
Total Current Period Fees
Amount Due for Current Period
Total Amount Due
x 1/4
$6,802.54
$6,802.54
$6,802.54
$6,802.54
LAZARD ASSET MANAGEMENT
Billing Period: 04/01/2020 - 06/30/2020 Invoice Number: 1773540 Account Number: 30600250
Mr. Mark Gerber Binninham Employees Retirement System P.O. Box 3001 ,
Birmingham, Ml 48012
Date Issued: Value Date:
For Billing Inquiries Please Call 610-576-311 O
CITY OF BIRMINHGAM RETIREE HEALTH CARE Account# 1055021179
Cu:Tent Period Due: Over 30 Days: Over 60 Days: Over 90 Days:
Total Amount Due;
Management Fees:
Market Value Fees 2,737,979.88 @ 0.0065 annually x 1/4
Total Management Fees
$4,449.22 $0.00 $0.00 $0.00
$4,449.22
4,449.22
$4,449.22
Please detach and return bottom of statement with your payment.
Remit Payment:
Invoice Number:
By Mail:
Lazard Asset Management
P.O. Box 5394
New York, NY
10185-5394
By Wire:
Citibank NA
SWIFT: CITIUS33 ABA: 021 000089
Account Name: Lazard Asset Management LLC Account#: 30938403
04/09/2020 03/3112020
Account Number: Current Period Due:
1773540 30600250 $4,449.22 $4,449.22
Please include account # and invoice # with payment
Total Due:
@Tortoise April 30, 2020
Beginning
Ending
Management Fee Schedule:
Market Va lue Tiers
From To
Fixed Income Management Fee City of Birmingham
Retiree Health Care Fund
xxxxxx3214
Inception Date: 09/17 /2009
Bi lling Period
January 1, 2020
March 31, 2020
Bi ll ing Summary
Fee Rate Value
Days in
Year
$ $ 50,000,000 0.250% $5,326,590.52 360
Prorated Cont ributions/Withdrawa ls
January 2, 2020 0.250% 6,726.98 360 January 2, 2020 0.250% 1,894.75 360
January 16, 2020 0.250% 1,878.84 360 January 16, 2020 0.250% 6,664.32 360 January 16, 2020 0.250% 1,878.84 360 January 30, 2020 0.250% 1,988.17 360 January 30, 2020 0.250% 7, 193.67 360 February 4, 2020 0.250% 105,690.37 360 February 13, 2020 0.250% 1,836.03 360 February 13, 2020 0.250% 6,498.08 360 February 27, 2020 0.250% 6,573.48 360 February 27, 2020 0.250% 1,847.13 360
March 12, 2020 0.250% 6,670.14 360 March 12, 2020 0.250% 1,874. 17 360 March 16, 2020 0.250% 105,690.37 360 M arch 26, 2020 0.250% 6,979.00 360 March 26, 2020 0.250% 1,997.06 360
Total M anagement Fee
Asset Va lue
$5,326,590.52
Days in
Period Fee
90 $3,329.12
($0.05)
($0.01)
15 ($0 20) 15 ($069)
15 ($0.20)
29 ($0.40)
29 ($1.45)
34 ($24.95) 43 ($0.55) 43 ($1.94)
57 ($2.60) 57 ($0.73)
71 ($3.29)
71 ($0.92) 75 ($55.05)
85 ($4. 12) 85 ($118)
$3,230.79
If possible, w e would g rea tly appreciat e th e use o f ACH/EFT payments at th is t im e .
ACll /EFT lns1 ruc 1iuns (J>REFE HRED) :
B:ink : 1);111k A ddrcs. ·
Account Nnmc : /\BA ii:
Account Nurnbc.r :
C rossFirst Bank 470 7 W 13.'\ ih St. l..:awo'1d. KS 6(1224 To rto ise Crc·<lit Strntcgics. LLC 10101 5282 000000020 1 :'4~ 7 01
If A C H/ EFT not 1>ossib k , pk11sc no te tha t o u r a d dress has chu ngnl: Checks :o.hould be mad~ out to .. Tortoise Cr~di1 Strategies , I .LC" and ;,<0nt 10 the following address :
f'ortoi se Credit Strategic~ , LLC :'\ttn : Acc<.•Unt:-;. Rcccivabk· 5 100 W . l l ~ • h Pl:i<: <.' Lt.~awood , KS 6621 l
555 W. 5th Street, Suite 3700 I Los Angeles, CA 90013 I (213) 687 9170 www.tortoisecredit.co m
7.5? -- 0-~CJ~~o .. §>ocQO?oo
*UBS
Attn: Mark Gerber
UBS Financial Services Inc. 1 000 Harbor Boulevard, 6th FL. Weehawken, NJ 07086-6761
ubs.com/fs
CITY OF BIRMINGHAM RETIREE HEAL TH CARE FUND ATIN - MARK GERBER CPA 151 MARTIN STREET PO BOX 300 1 BIRMINGHAM Ml 48012-3001
Institutional Consulting
Charges for the period :
Fee for AUA: $37,989,632 .00
Other Consulting Fees:
Credits for the period :
Prior Ba lance:
Ending Balance:
Please note:
$6, 139.58
$6,139.58
$0.00
$0.00
$0.00
$6,139.58
(PLEASE PAY)
Va luation of assets held outside UBS is based on information provided by you or at your d irection . UBS does not verify this information. Account statements provided by your custodian are the only official record of your holdings.
I
Invoice !
Date: 05/05/2020 Contract ID: 1255 Invoice No.: 2020033141 QC Billing Period: 01 /0 1 /2020 to 03/3112020 Institutional Consultant: BIRMINGHAM
Payment instructions Fu ll payment must be received within 30 days of the receipt of this invoice. Please reference the Invoice Number with your payment.
If paying by check, please send to: UBS Financial Services 2301 W. Big Beaver Rd. Suite 800 Troy, Ml 48084 Attention: The Gasper Financial Group
If paying by wire, please remit payment to: UBS ABA 026007993 UBS A/C 101 -WA-258641-000
Further credit to YYM346500070 Client name: CITY OF BIRMINGHAM
RETIREE HEALTH CARE FUND
Contract ID : 1255 Bank address: UBS
600 Washington Blvd. g•h Floor
· Stamford, CT 0690 1
If paying by Direct Debit w ith your UBS account. your Institutional Consultant will arrange for your account(s) to be debited .
If you have questions about your invoice please contact your Institutional Consultant tea m at 1-214-220-0400 Page 1 of 2
Package ID: 0323710880-01 ABF IC
Fees and credits for the period
Fee for Assets Under Advisement
Account Asset Value Rate Fee
M3 XXX38 $37 ,989,632 .00 0.065 % $6, 139 .58
Total $37,989,632 .00 $6, 139.58
©UBS 20 14. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. 140718- 1119 Page 2 of 2
City of Birmingham 151 Martin, P.O. Box 3001 Birmingham, Michigan 48012 248-644-1800 fax 248-644-5614
Dept.#: 1011 Date: 4/28/2020
Req . #: Vendor#: 979 ~~~~ ~~~~
Vendor Name: Comerica Bank ~~~~~~~~~~~~~~~~
Address: Attn: Trust Fee Accounting Group
PAYMENT REQUISITION FORM P.O. Box 67600 ~~~~~~~~~~~~~~~~
Detroit, Ml 48267
Quantity Description:
Item #1 . $ 3,875.01 Custodial Services/market value fees
Account#:. 736-860.000-802.0300 1 /1 /2020-3/31 /2020
Quantity Units $/Unit Description:
Item #2 .
Account#:
Quantity Units $/Unit Description :
Item #3 .
Account#:
Quantity Units $/Unit Description:
Item #4 .
Account#:
Quantity Units $/Unit Description :
Item #5.
Account#:
GRAND TOTAL: $ 31875.01
INSTRUCTIONS: APPROVALS: ( ) Hold for billing . Date of Commission , Library or Retirement Board ( ) Approved for payment (no purchase order) . Approval (if required) : ___________ _ ( ) Send payment to department for mailing . ( ) Send attachments with check. Dept. Head: ______________ _
( ) Early release. ( ) Wednesday release . Finance Dept.: _____________ _
Other: Group No.: ______________ _
$ UBS
Retiree Health Care Fund Review - 1st Quarter, 2020
City of Birmingham
Flagship Financial Partners UBS Financial Services Inc. 750 Washington Boulevard Stamford, CT (888) 43 5-6930
June 3rd, 2020
* UBS A
s GJ > <1.J
0::::: -f.-' GJ
..::::L !.-
<U
~ ~ !.-
GJ Cf) -f.-' f:Q !.-
<U ~ ::J
* 0
2020 started with sharp losses across asset classes Performance, select asset classes Asset class
Cash US government US Treasuries (long) US TIPS US municipals US IG credit US high yield lnt'I dev Fl EM USD Fl EM LC Fl US all-cap US large-cap US large-cap value US large-cap growth US mid-cap US small-cap lnt'I dev equity lnt'I dev value Japan Equity EM equity Commodities Preferreds MLPs US Real Estate Senior loans
Source: Bloomberg, UBS, as of 1 April 2020.
$ UBS
1Q 2020 2019 0.5% 2.2% 8.1% 6.8%
Fl "}' . ,,!t&\J~ 1.7% I 8.4% -0 .6%
-2 .7% 5.1%
The views expressed in this slide belong to CIO Americas, GWM
Stocks have been battered by COVID-19 concerns. S&P 500 index level, with cal louts for select news items
3,4C{) May 6 Pres. Trumoends trade truce, announces tariff hike effective 1 O 1'.·1ay
Aug 1 Pres. Trump announces 10% tariff on USO 300bn of Chinese imports, eff. 1 Sept.
Mar 6 Total global cases passes 100,000
3,3CO
3,2CQ
3, 1 CD
3,0C{)
2, 9CD
2,8CD
2, 7CO
2,6CO
2,SC{)
2,400
2,300
2,2C{) Mar- 19
July 1 The us and China announce a 'trade truce ·
l Apr 11 The EU and UK agree to a Br exit • flex"tens1on .. through 31 October
Ju ly 22 US Fecera l governmertt reacl1es agreement to raise debt ceiling
Aug 13 Trump announces partial delay of iurtt1er tariffs from 1 Sept. to 15 Dec.
Sep 2 4 Speaker Pelosi opens format impeachmentinquirt into Pres. Trump
Oct 28 PM Boris Johnson accepts EU extension of Brexit to 3 i January 2020, ca!!s for snap election
Sep 16 Drone str ike on Saudi oil infrastructure inflames tensions between U5'Saud1 Arabia & Jr an
Sep 11 China announces son1e tariff exemptions on commodities; Trump announces delays for tariff increases
Aug 23 China announces retaliatory tariffs; Trump increase rate on already announced tariffs
Jan 21 First confirmed case of COVID- 19 in the US
Dec 31 WHO learns of pneumonia -like sickness impacting cozens in China
Feb 28 First ceat11 reported in the US
Mar 3 Fed cuts interest rates by 50bos
Mar 11 WHO declares the
I
C OV!D-19 outbreak a pandemic
Dec 18 US House of Reps. Approves tvvo articles of impeachment against Pres. Trump
Aug 5 China suspends US agricultural purchases; the US labels China ·currency manipulator"
Dec 13 US, China agree to Phase 1 deal;
Mar 16 Fed takes rates to 0-0.25% overnig!1t
PM Johnson wins strong majority in UK election
Apr-19 May-1 9 Jun-1 9 Jui-19 Aug- 19 Sep-19 Oct-19 Nov- 19 Dec-19 Jan-20 Feb-20
Source: Bloomberg, UBS, as of 1 April 2020
Mar 13 Pres. Trun-:p declares national
Mar 26 US Senate passes 'Stimulus bill 3'; us cases to::> 75k, deaths too l,000
iv1ar- 20
$ UBS The views expressed in this slide belong to CIO Americas, GWM
.. . while Treasuries have rallied ... 10-year Treasuries, 20+ year Treasuries, 20-30yr STRIPS, global stocks, base 100, total return since 31 Dec 2019
160
140
120
100 -~--~-
80
60 Dec 19
- 10-year Treasury
Source: Bloomberg, UBS, as of 31 March 2020
* UBS
Jan 20
20+ year Treasury
Feb 20
- 20-30 year STRIPS
Mar 20
MSCI ACWI
The views expressed in this slide belong to CIO Americas, GWM
.. . softening the blow for diversified portfolio returns Quilt chart of select asset classes' calendar year performance
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ~ " ~111,"",.. 'I '1...------.:~
Higthest66.5% 13.2% 7.2% 11 .5%,55.8% 25 .6% 34.0% 32.1% 39.4% re urn
ffi
'27.0%Ji1 1.7%! 11
21.3%10.2% Is.,;; . . -~· ... . ~ '~lJJW ~., ••• ddf :'\ . J, l~· I -· I I
21.3% 37.3% 8.1%
25.5% !-0.6%
2.5% 1.3% ~26.2% f.2a!4%1 15 . 1 % 11.8% 11 6.3% 111.8%1 4.9% 1 0.1 % 111 .2o;J 14.6% l-4.2% 11 8.4%i-12.1 %
~
-6.2°10129.0% 11 .1 % 4.6% 113.0%1 5.8 % l-33.8% 27.2% 19.2% I 11~5%~ 15.8% 7.4% 4.9% -0.8% I s.2% 114.4%1-4.8% 116.8%
3 .5% I 11.8% '"''#
2.4% 3.5% 2.7% 3.5%
U~Large;.cap ~ US Small-cap US High Yield US Gov Fixed rus M . . I >.\!W • .t1!W' . . • 1 uniopa s Equities Equ1t1es Credit Income
Source: Bloomberg. UBS, as of 31 March 2020.
Moderate Diversified Portfolio
-4.4% 1.0% 7.5%
.2% I 2.3% ~ 14 .6% 6.8% -30.6%
Note: The Moderate Diversified Portfolio performance calculations are a hypothetical analysis based on historical asset class returns. This backward-looking illustration assumes an investment in asset class indexes represented by the current Strategic Asset Allocation (SAA) for a moderate risk profile investor in a taxable portfol io without non-traditional assets. Performance calculations assume annual rebalancing, don't take into account any prior SAA for this investor profile. and include t ime periods before the SAA was created. See the latest "UBS House View: Detailed asset allocation tables" document for the detailed SAA. These calculations w ill not match the official publ ished performance data, which reflect monthly rebalancing. For periods prior to 2009, th is illustration assumes that the Bloomberg Barclays EM Local Currency Government Total Return Index allocation (inception date of 4 July 2008) was invested fully in the Bloomberg Barclays EM USD Aggregate Total Return Index.
* UBS The views expressed in this slide belong to CIO Americas, GWM
1 Q 2020 Economic Review
• Economic growth was solid during the first weeks of 2020, but the rapid spread COVID-19 prompted governments around the globe to institute a massive lockdown on economic activity. The result has been an intentional recession that has not yet begun to show up in most official data . Unlike previous recessions, the service sector will likely be the epicenter of the economic damage, since these are the areas affected by the quarantine and shelter-in-place orders. The March nonmanufacturing PMI survey was taken too early to provide a full picture of the quarantine mandates' impact.
• US labor market data have not yet captured the sharp economic slowdown. The last two weeks of March jobless claims totaled 9.96 million-equivalent to the
With the globe on lockdown due to COVID-19, the economy has entered an "intentional recession" ISM Purchasing Managers' Indices (PMls)
60
55
50 -- ----
total seen in the first six months of the Global Financial 45 Crisis. With nonfarm payroll growth falling into negative territory for the first time since 2010, the unemployment rate will rise sharply as new data come in.
• Inflation has remained subdued, with core PCE and headline PC E both registering 1.8% in February, before the virus hit. With the demand shock from shelter-inplace orders, we expect inflation to remain below the Fed's 2 % target.
'* UBS
40 2015 2016
- Composite PMI
2017
- Non-manufacturing PMI
Source: Bloomberg, UBS. as of 3 Apri l 2020.
2018 2019
Manufacturing PMI
The views expressed in this slide belong .to CIO Americas, GWM
1 Q 2020 Equity Review
• With the global economy entering a standstill in the first quarter, and significant uncertainty over when things will go back to normal, the first quarter saw the sharpest sell-off in history.
• After reaching an all-time high on 19 February, the S&P 500 crossed its /1 bear market /1
threshold (down more than 20°10) in a record 16 trading days.
• After the S&P 500 fell as much as 35o/o through 23 March, stocks managed a solid three-day ral ly of nearly 20°10 toward the end of March, but this was far from enough to recoup the quarter's losses.
$ UBS
Total return for select asset classes
S&P 500 -19.6%
31 .5%
Russell 1 OOOG 36.4%
Russell 1000V -26 .7 % 26.5 %
Russell Mid Cap -27 .1 % 30.5%
Russell 2000 -30.6% 25 .5%
EAFE Net -22 .8%
22.0%
MSCI Emerg ing Mkts Net -23 .6%
18.4%
FTSE NAREIT -23.4%
28.7%
•YTD 2019
Source: Bloomberg, UBS, as of 31 March 2020
The views expressed in this slide belong to CIO Americas, GWM
US Stocks, Performance by Size and Style Annualized return, select time periods, in %
La rge (26. 7)
Mid (31 . 7)
Small (35. 7)
Value
Large (2.2)
Mid (6.0)
Small (9.5)
Value
Representative Indices Used in Style Grid :
Large Cap Value: Russe ll 1000 Va lue Index Large Cap Blend : Russe ll 1000 Index Large Cap Growth: Russell 1000 Growth Index
1Q 2020
(20.2) ( 14. 1)
(2 7 .1) (20.0)
(30 .6) (25.8)
Blend Growth
3-year
4 .6 11.3
(0.8) 6.5
(4.6) 0.1
Blend Growth
M id Cap Value: Russell MidCap Value Index Mid Cap Blend: Russell MidCap Index Mid Cap Growth: Russell MidCap Growth Index
Large (17.2)
Mid (24.1)
Small (29.6)
Value
Large 1.9
Mid (0.8)
Small (2.4)
Value
Small Cap Value: Russell 2000 Va lue Index Small Cap Blend: Russell 2000 Index Small Cap Growth: Russe ll 2000 Growth Index
1-year
(8.0) 0.9
(18.3) (9.4)
(24.0) (18.6)
Blend Growth
5-year
6.2 10.4
1.8 5.6
(0.2) 1.7
Blend Growt h
Source: Morn ingstar, as of 31 March 2020
FOR INSTITUTIONAL USE ONLY. This document is prepared by the UBS Manager Research Group at UBS Financial Services Inc. and is for informational purposes only and is not a recommendation to buy or sell any securities. The information contained herein has been obtained from third parties and has not been verified by UBS Financia l Services Inc. Please note any index performance presented does not reflect any transaction costs or management fees. An actual investment in the securities included in the index wou ld require an investor to incur fees, which would lower the performance results. Indexes are not avai lable for direct investing. Past performance is no guarantee of future results .
c$ UBS The views expressed in this slide belong to CIO Americas, GWM
Sector Performance: S&P 500 and MSCI ACWI ex-US Sector performance (weight), 1 Q 2020
S&P 500 MSCI ACWI ex-US
Communication Services (10.5%) Communication Services (6.8%)
Consumer Discretionary (9.8 %) Consumer Discretionary (11 .8%)
Consumer Staples (7 .2%) Consumer Staples (9.5%)
Energy (3.9%) -50% Energy (5.8%) -38 %
Financials (12 .6%) Financials (21.3 %)
Health Care (14.0%) Health Care (9.1 %)
Industrials (9 .0%) Industrials (11 .9%)
Information Technology (23 .9%) Information Technology (9.6 %)
Materials (2.5%) Materials (7.2%)
Real Estate (3.0%) Real Estate (3.2 %)
Utilities (3.4%) Utilities (3 .6%)
Source: FactSet, UBS, as of 31 March 2020
* UBS The views expressed in th is slide belong to CIO Americas, GWM
1 Q 2020 Fixed Income Review
• Interest rates moved sharply lower during the quarter; the 10-year Treasury yield fell from 1.92 °/o at the end of 2019 to an all-time low of 0.5°/o on 9 March, closing the quarter at 0.7°/o.
•Treasuries rallied sharply in a risk-off environment, while corporate bonds saw heavy losses, with credit spreads widening out to crisis-era levels.
• Municipal bonds also saw sharp losses in mid-March when illiquidity caused market dislocations, but recovered sharply following the announcement of the Federal Reserve's quantitative easing and asset repurchasing programs.
* UBS
Total return for select asset classes
BC Aggregate
BC Gov
BC Muni
BC US Credit
. . -13.1 % ICE BofA High Yield
FTSE Wld Gov Bond xUS
BC EM Sovereign -11 .4%
FTSE T-Bill (90 Day)
• YTD 2019
Source: Bloomberg, UBS. as of 31 March 2020
8.7%
I
I
I
I
I
8.1 %
6.8%
7.5%
5.3%
' 0.4% 2.3%
13.8%
14.4%
14.1 %
The views expressed in this slide belong to CIO Americas, GWM
2Q 2020 Economic and Market Outlook
• Overview - Global monetary policy is extraordinarily supportive, and sizable fiscal stimulus is being implemented across the globe. These have helped to calm markets temporarily, but ultimately the depth and duration of this bear market and recession will depend heavily on the extent of the virus's spread, which is something very difficult to predict. See our scenarios on the next page.
• Earnings & Valuations - The S&P 500 saw roughly flat earnings per share (EPS) growth in 2019, hampered by slower economic growth and lower business spending due to trade tensions. In 2020, we expect S&P 500 EPS to fall 21 % as a result of lower economic growth . In 2021, we expect EPS growth of 20% as the economy recovers. The S&P 500 now trades at 19x our 2020 EPS estimate and 15.8x our 2021 EPS estimate.
• Policymakers - The Fed and other central banks have cut interest rates as low as they can go, and reinstituted quantitative easing and asset repurchasing programs at levels we haven't seen since the global financial crisis. Governments around the globe have also implemented record stimulus packages to try to stave off bankruptcies and layoffs from otherwise-healthy businesses affected by the containment efforts.
* UBS
We expect a deep {but short-lived} recession US growth and inflation, with UBS forecasts, in °/o
2.3
-2 .0 -2 .0
0.3
4019 1020 2020 3020
CPl-U y/y
4020
• Real GDP y/y
Source: UBS. as of 1 April 2020
The views expressed in this slide belong to CIO Americas, GWM
Given the uncertainty, we focus on three scenarios ...
Gradually until economic
June - Sep, Early-May impact heavy on Early-April
drug treatment 3Q20 2Q, recovery starting 30
Mid-May, Negative
though economic
4020 - 1 Q21 f intermittently 10 2021 impact heavy on Central Mid-April
drug treatment and regionally 2Q, subdued
re-imposed recovery 30-10
through 2020 June/July,
Negative though 2021 or later,
intermittently economic May/June drug treatment
and regionally In 2021
impact heavy on or vaccination
re-imposed 2020-1021 through 2020
Source: UBS.
$ UBS The views expressed in this slide belong to CIO Americas, GWM
.. . which help us identify opportunities amidst uncertainty. UBS CIO central, downside, and upside year-end 2020 expectations
Index
S&P 500
Euro Stoxx 50
MSCI EM
SMI
USO IG spread
USO HY spread
EM bonds spread
Source : UBS, as of 1 April 2020
'* UBS
Current (1 April)
2471
2680
849
9169
305
877
609 bps
Year-end 2020 forecasts, projected change
Central scenario Upside scenario Downside scenario
2650 2900 2100
(7 .3 °/o) (17.4°/o) (-15.0°/o)
2600 3050 1800
(-3.0o/o) (13.8°/o) (-32.8°/o)
900 1000 580
(6.1 °/o) (17.8°/o) (-31.7°/o)
9000 10000 6500
(-1.8°/o) (9.1°/o) (-29.1 °/o)
150 bps 100 bps 300-400 bps
(-1 5 5) (-205) (45)
550 bps 350 bps 1,000-1,500bps
(-327) (-527) (373)
450 bps 280 bps 700-800 bps
(-1 59) (-329) (141)
The views expressed in this slide belong to CIO Americas, GWM
Recap
• We believe market developments from here will be determined by the answers to two key questions: 1. How quickly can economic activity normalize? 2. How much can policy responses limit corporate bankruptcies and job losses?
• In our central scenario, new cases of COVID-19 will peak by mid-April, allowing severe restrictions to be lifted mid-May, allowing for a U-shaped recovery around the fourth quarter.
• At present, we think credit markets-particularly high-yield corporate bonds and EM sovereign bondsare closer to pricing in a downside scenario than equities are, and should provide strong income as markets remain choppy in the coming months.
• We also see Treasury Inflation-Protected Securities (TIPS) as offering unique value, benefiting from reflation that could come from monetary and fiscal stimulus. For equity-heavy portfolios, we continue to recommend a tactical overweight to long-duration Treasuries, which can help manage drawdown risk.
• The recent sell-off does mean the end of the longest bull market in US history, but investors should not panic. Investors can protect themselves from bear market damage simply through a well-funded Liquidity strategy, because it allows us to meet our short-term cash needs without locking in the otherwise-temporary losses we see during bear markets, .
Source: UBS, as of 27 March 2020. Timeframes may vary. Strategies are subject to individual client goals, objectives, and suitabi lity. This approach is not a promise or guarantee that wealth, or any financial results, can or wi ll be achieved.
* UBS The views expressed in this slide belong to CIO Americas, GWM
Long-Term Market View Calendar year and long-term return st atisti cs for select asset classes 1999-20 1999-
20 2020
Highest return
Lowest return
return std.
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (ann.) dev.
US Mid-cap US Small-Equ it ies cap Equities
US Gov Fixed
Income
US High Yield Cred it
Moderate Diversified Portfolio
9.0% 20.8%
7.8% 20.9%
6.6% 16.1 %
4. 1% 4.6%
Source: Bloomberg, UBS. as of 31 March 2020
$ UBS Note: The Moderate Diversified Portfol io performance calculations are a hypothetical analysis based on historical asset class returns. This backward-looking illustration assumes an investment in asset class indexes represented by the current Strateg ic Asset Allocation (SAA) for a moderate risk profile investor in a taxable portfolio without non-t radit ional assets. Performance calculations assume annual rebalancing, don't take into account any prior SAA for this investor profile, and include time periods before the SAA was created. See the latest "UBS House View: Detailed asset allocation tables" document for the detailed SAA. These calculations w ill not match the official publ ished performance data, which reflect monthly rebalancing. For periods prior to 2009, this illustration assumes that the Bloomberg Barclays EM Local Currency Government Total Return Index allocation (inception date of 4 July 2008) was invested fully in the Bloomberg Barclays EM USD Aggregate Total Return Index.
m x ([) n c r-+
'< ([)
L/)
c 3 3 OJ
---~
* UBS Flagship Financial Partners
Matthew E. Lasko, CFP Managing Director - Wealth Management
Senior Retirement Plan Consultant
Birmingham Retiree Health Care Fund - Asset Allocation
As of: 3/31/2020
Manager
E ult US Large Cap Equity
Vanguard S&P 500 ETF Bahl & Gaynor Large Cap Growth Westwood Large Cap Value
Total US Large Cap Equity
US Small/Mid Cap Equity Vanguard Mid Cap Index ETF Apex SMID Cap Growth Gabelli Small Cap Value
Total US Small/Mid Cap Equity:
Non US Equity Laza rd International Equity
Total International
Developing Markets Lazard Emerging Markets
Total Developing Markets
Total Equity:
Fixed Income US Fixed Income
Bradford & Marzec Fixed Income C.S. McKee Fixed Income Bramshi ll Income Performance
Total US Fixed Income
Total Fixed Income:
Alternative Investments
Cavendish Managed Futures Graham Absolute Return Hedge Fund Whitebox Multi-Strategy Hedge Fund
Total Alternative Investments
Cash & E uivalents
Total Cash & Equivalents
Total Portfolio
Total Portfolio:
Market Value
$4,7 10,847 $3,562,942 $3,43 1,404
$11,705,193
$2,449,30 1 $2, 109,588 $1,840,4 14 $6,399,303
$2 744 056 $2,744,056
$1,205,460 $1,205,460
--$22,054,012
$5,333,488 $2,548,522 $1,194,344 $9,076,354
$9,076,354
$1,046,052 $989,435 $944,236
S2,979,723
so
$34, 110,089
% of Portfolio
13.8% 10.4% 10.1% 34.3 %
7.2% 6.2% 5.4%
18.8%
8.0% 8.0%
3. 5% 3.5 %
64.7%
15.6% 7.5% 3.5%
26.6 %
26.6%
3. 1% 2.9% 2.8% 8.7%
0.0 %
100.0%
% Allocation Min . Target Max. % Delta S Delta
I 20.0% 34.0% 50.0 % I 0.3% $107,763
I 5.0% 14.0% 20.0% I 4.8% $1,623,891
I 3.0% 8.0% 14.0%
I 0.0% $15,249
I 2.0 % 4.0 % 6.0% I -0.5% -S158,944
I 35 .0% 60.0% 85.0% I 4.7% Sl,587,959
20.0% 30.0% 50.0% -3.4% -s 1, 156,673
20.0% 30.0% 60.0% -3 .4% -S 1, 156,673
0.0% 10.0 % 15.0% -1.3 % -$431,286
0.0% 0.0% 20.0% 0.0% so
100.0%
This chart is for illustrative purposes only and may not reflect current market va lues. Va lues as of the date indicated may be rou nded for convenience. % of Total of portfolio is computed using the market value and the total portfolio. The values have been provided by a thi rd party considered to be re liable. However, UBS does not warrant the accu racy of this information and is not responsib le for any inaccuracies.
Please refer to the final page for important disclosures
UBS Institutional Consulting Group
* UBS Birmingham Retiree Health Care Fund - Performance Summary
As of: 3/31/2020
Manager 01. 2020 1 Year Anlz.
3 Year Anlz.
5 Year Anlz.
7 Year Anlz.
10 Year Anlz.
Inception to Date
Inception Date
1.8% 4.0% 4.8% 611/2001
Target Index* -13.4%
CPl + 3 % 0.5 %
6. 75% Actuaria l Assumed Rate 1.6 %
D()mestic Large Cap
Vanguard S&P 500 ETF -19.6%
S&P 500 Index - 19.6%
Bah l Gaynor Large Cap Growth -19 .9%
Russell 1000 Growth Index - 14.1 %
Westwood Large Cap Va lue -23 .2%
Russell 1000 Value Index -26.7%
Domestic Small/Mid Cap
Vanguard M id Cap Index ETF -Spliced Vanguard Mid Cap Fund Index
Seizert M id Cap Value 5.7%
Russell M id Cap Index 7. 1%
Apex SM ID Cap Growth -22 .7%
Russell M id Cap Growth Index -20.0% Gabell i Small Cap Value -35.2%
Russell 2000 Value Index -35.7 %
International Lazard Internationa l Equity -22.6 %
MSC/ EAFE Index -22.8%
-4.7 %
4.6%
6.7%
-7.0%
-7.0%
-5.2%
0.9 %
-11.5%
-17.2 %
-
23 .1%
30.5%
-13 .9%
-9.4%
-32 .5%
-29.6 %
-15.4%
-14.4%
2.8 %
5.1 %
6.7%
5.1%
5.1 %
7.4%
11.3%
2.6%
-2.2%
-
-
3.7%
6.5%
-11.8%
-9.5%
-0.7%
-1.8%
oeliefoping Mc~~~~~~~~~~~~!\.,;; :'.> ::/+ u • I : i>•.+.•:1'tt,•:>i···•• Lazard Emerg ing Markets -30.1 % -22.7% -7.7%
MSC/ Emerging M arkets Index -23.6% -17.7% -1.6 %
U.S. Fixed Bradford & Marzec Fixed Income 2.4 % 8.6% 5.1 %
Barclays Aggregate Bond Index 3. 1% 8.9 % 4.8 %
C.S. McKee Fixed Income -0.3 % 7.5% 4.6%
Barclays Aggregate Bond Index 3.1 % 8.9 % 4.8 %
Bramshill Income Performance -7.9% -4.7% -Barclays Aggregate Bond Index 3.1 % 8.9% -
3.3%
4.9%
6.7%
-7.5%
10.4%
4.5%
1.9%
-
----
-3.9%
-2.4 %
0.1 %
-0.6 %
-3.2%
-0.4%
3.8 %
3.4 %
3.3%
3.4%
-
5.2 %
4.6%
6.7%
-9.6%
12.9%
7.8 %
5.6%
-
----
1.2%
1.8%
2.6%
1.7%
-3 .1%
-0.4%
3.8 %
3.2 %
3.2 %
3.2%
-Alternative lnvest:me!nts• ii• i 1 :>•<rsH'iJ!i+• <<I•iii:!:::: .; ? t if ;iii ?:11(>'. !1!::+%i. >•+ ····•···>• >·•····•.•·T<>• ·· , .•.. •• • >···
Cavendish M anaged Futures -12.8% -10.3% -1.8% - -HFRI Macro. Systema tic Diversified Index -0.1 % 4.8% 1.1 % - -
Graham Absolute Return Hedge Fund -15.2% - - -HFRI M acro Index 0. 1% - -
W hitebox Mu lt i-Strategy Hedge Fund -15 .7% - - -HFRI RV: Multi-Strategy Index -4.4 % - - -
6.2 %
4.8 %
6.7 %
-
10.4%
13.0%
8 .5%
7.7%
---
5.7%
4.8 %
4.4 %
2.7%
-0.8%
0.7%
4.8%
3.9%
4.0%
3.9%
--
------
4.7 %
5.0 %
6.7%
7.7 %
7.7%
11.0%
13.6%
6.4%
5.9%
-
6.4%
10.8 % 2.7%
5.9% 6.5%
5.7%
5.1 %
3.8 %
-1.2%
-0.7%
4.9%
3.9 %
4.2%
4.0 %
-4.7%
8.9 %
-1.0%
0.1 %
-12 .1%
3. 1%
-15.0%
-2.9%
5/1 /2016
9/1/2009
7/1/2008
3/1/2020
9/1/2017
7/1/2015
6/1 /2001
6/1/2001
12/1/2007
9/1 /2009
8/1 /2009
3/1 /2019
5/1/2016
4/1 /2019
4/1 /2019
*Target Index is currently comprised of 25% S&P 500 Index, 15% Russell Mid Cap Index, 5% Russell 2000 Index, 10% M SC I EAFE Index, 5% MSC I Emerging Markets Index, 35% Bloomberg
Ba rclays US Aggregate Index, and 5% HFRI M acro : Systema tic Diversified Index.
Please re fer to the final page for important disclosures
UBS Institutional Consulting Group
* UBS Flagship Financial Partners
Matthew E. Lasko, CFP Managing Director - Wealth Management
Senior Retirement Plan Consultant
Bi rmingham Retiree Health Care Fund - Asset Allocation
As of: 4/30/2020
Manager
e ult US Large Cap Equity
Vanguard S&P 500 ETF Bahl & Gaynor Large Cap Growth Westwood Large Cap Va lue
Total US Large Cap Equity
US Small/Mid Cap Equity Vanguard Mid Cap Index ETF Apex SMID Cap Growth Gabelli Small Cap Va lue
Total US Small/Mid Cap Equity:
Non US Equity Laza rd International Equity
Total International
Developing Markets Lazard Emerging Markets
Total Developing Markets
Total Equ ity:
US Fixed Income Bradford & Marzec Fixed Income C. S. McKee Fixed Income Bramshi ll Income Performance
Total US Fixed Income
Total Fixed Income:
Alternative ln"·~st:m~•nt~• \\ < >>>:,•• > .. ::<:<it>>'>>/
Cavendish Managed Futures Graham Absolute Return Hedge Fund Whitebox Multi-Strategy Hedge Fund
Total Alternative Investments
Cash & En11i•>1:.l••n•<. +/2rhti>··n %\>/\'tf>:XX>">>> •>•>
Total Cash & Equivalents
Total Portfolio •/':''''"''''''''
Total Portfolio:
Market Value
$5,3 13,026 $3,980,478 $3,782,969
$13,076,473
$2,638,587 $2,484, 739 $2,011 ,164 $7,134,490
$2 918,07 1 $2,918,071
$1,291,297 $1,291 ,297
--$24,420,331
$5, 199,990 $2,394,832 $1,260, 175 S8,8S4,997
$8,8S4,997
$1,050,292 $1 ,012,190
$959,425 $3,021,907
so
S36,297,23S
% of Portfolio
14.6% 11 .0% 10.4% 36.0%
7.3% 6.8% 5.5%
19.7%
8.0% 8.0%
3.6% 3.6%
67.3%
14.3% 6.6% 3.5%
24.4 %
24.4%
2.9% 2.8% 2.6% 8.3%
0.0%
100.0%
% Allocation Min. Target Max. % Delta S Delta
I 20.0% 34.0% S0.0% I 2.0% S73S,413
I S.0% 14.0% 20.0% I S.7 % S2,0S2,877
I 3.0% 8.0% 14.0%
I 0.0% $14,292
I 2.0% 4.0% 6.0% I -0.4% -$160,592
I 3S.0% 60.0% 8S.0% I 7.3% $2,641 ,990
20.0% 30.0% S0.0% -S.6% -$2,034,174
20.0% 30.0% 60.0% -S.6% -$2,034, 174
0.0% 10.0% 1S.0% -1.7% -$607,817
0.0% 0.0% 20.0% 0.0% so
100.0%
This chart is for illustrative purposes only and may not reflect current market values. Val ues as of the date indica ted may be rounded for conven ience. % of Tota l of portfolio is computed using the market va lue and the tota l portfolio. The va lues have been provided by a third pa rty considered to be re liable. However, UBS does not warrant the accuracy of this information and is not responsible for any inaccuracies.
Please refer to the final page for important disclosures
UBS Institutional Consulting Group
$ UBS Birmingham Retiree Health Care Fund_-_f>erformance Summary
As of: 4/30/2020
Manager AruiJ.,_ 2020
3 Months YTD. 2020 1 Year Anlz.
3 Year Anlz.
5 Year Anlz.
10 Year Inception Inception Anlz. to Date Date
Portfolio 7.7% ·9.6% ·9.9% ·3.8% 3.1% 3.4% 6.0% 5.2% 61112001
Target Index*
CPl+ 3%
6.75% Actuarial Assumed Rate
Domestic Large cap Equity Vanguard S&P 500 ETF
S&P 500 Index
Bahl Gaynor Large Cap Growth
Russell 1000 Growth Index
Westwood Large Cap Va lue
Russell 1000 Value Index
Oomestic Small/Mid Cap Vanguard Mid Cap Index ETF
Spliced Vanguard Mid Cap Fund Index
Apex SMID Cap Growth
Russell Mid Cap Growth Index
Gabel Ii Sma ll Cap Va lue
Russell 2000 Value Index
7.8 %
0.2 %
0.5%
12.8 %
12.8 %
11.7%
14.8 %
10.2%
11.2%
14.4%
14.4% 17.8 %
15.7 %
9.3%
12.3%
Lazard Internationa l Equity 6.3 %
MSC/ EAFE Index 6.5 %
Developing Markets
Laza rd Emerging Markets 7.1 %
MSC/ Emerging Markets Index 9.2 %
-6.6 %
0.4% 1.6 %
-9.3%
-9.2 %
-10.6%
-3.5%
-15.2 %
-16.7%
-6 .6 %
-8.4% -26.0%
-23.6 %
-17.0%
-16. 1%
-20.2%
-12.5%
-6.7%
0.8 % 2.2 %
-9.3 %
-9.3%
-10.5%
-1.4 %
-15.4 %
-18.5%
-8.9%
-7.5% -29.2%
-27.7%
-17.7 %
-17.8%
-25.1%
-16.6 %
0.5%
4.3%
6.7%
0.8%
0.9%
0.8%
10.8 %
-5 .7 %
-11.0 %
-2.5%
0.2 % -27.6%
-23.8 %
-12 .5%
-11.3%
-19.1%
-12.0%
u.s.Fixed 1nc1orn~r! > 1>t. :1 1c:<>t'•·····•••<K.•:;;;;;>···· . .:c1 .... <<' •·>>>+< > ,;., .... 1 •• n; .. s H•·•··•···1•·• 1 <\'.>> <> Bradford & Marzec Fixed Income 1.4% 1.8% 3.8% 10.0%
Barclays Aggregate Bond Index 1.8 % 3.0 % 5.0 % 10.8 %
CS. McKee Fixed Income 2.5% 0.5% 2.2% 10.1%
Barclays Aggregate Bond Index 1.8% 3.0 % 5.0% 10.8%
Bramshi ll Income Performance 5.4 % -3.2% -2.9% -0.5%
Barclays Aggregate Bond Index 1.8 % 3.0 % 5.0 % 10.8%
Cavendish Managed Futu res 0.4 % -12.3% -12.4% -11.0%
HFRI Macro: Systematic Diversified Index -0.3% -1.3% -0.7 % 2.3 %
Graham Absolute Retu rn Hedge Fund 2.3 % -13.2% -13.3% -10.1%
HFRI Macro Index 0.5% -1.0 % -0.9 % 2.1 %
Whitebox Mult i-Strategy Hedge Fund 1.6% -15.5% -14.4% -13.6%
HFRI RV: Multi-Strategy Index 2.5 % -4.6% -4.1 % -2.6 %
5.0%
5.0%
6.7%
9.0 %
9.0 %
11.0%
15.7%
5.5 %
1.4%
-8.4%
11.3% -9.5%
-6. 1%
0.3 %
-0.6 %
-6.1%
0.6 %
5.3 %
5.2 %
5.2 %
5.2 %
-1.5%
0.8%
--
4.8%
4.9 %
6.7%
9.8%
13.3%
6.6 %
3.9 %
-
-
-1.5%
0.3%
0.7%
-0.2 %
-3.1%
-0.1 %
4.2 %
3.8 %
3.9 %
3.8%
--
--
-
6.9 %
4.8%
6.7%
-
11.4%
14.4 %
9.4 %
8.5%
--
6.0 %
5.3%
5.3 %
3.5%
-0.2%
1.4%
4.8 %
4.0 %
4.2 %
4.0 %
--
--
--
5.1%
5.0%
6.7%
10.9 %
10.9%
12.1%
15.0%
7.2 %
6.9 %
14.4 %
14.4 %
6.3%
9. 1% 6.9 %
6.3%
5.4 %
4.2%
-0.6%
0.0%
5.0 %
4.0%
4.4 %
4. 1%
0.5%
10.0 %
-0.9%
-0.1 %
-10.1 %
2.1 %
-13.6%
-2.6 %
5/1/2016
9/1/2009
7/1/2008
3/1/2020
7/1/2015
6/1/2001
6/1/2001
12/1/2007
9/1/2009
8/1/2009
3/1/2019
5/1/2016
4/1/2019
4/1/2019
'Target Index is currently comprised of 25% S&P 500 Index, 15% Russell Mid Cap Index, 5% Russell 2000 Index, 10% MSCI EAFE Index, 5% M SCI Emerging Markets Index, 35% Bloomberg Barclays US Aggregate Index, and 5% HFRI Macro: Systematic Diversified Index .
Please refer to the final page for important disclosures
UBS Institutional Consulting Group
::J < ro L/) r-+
3 ro ::J r-+
Investment Monitoring Methodology
• IPS Investment Criteria:
1. Manager tenure greater than or equal to 3 years
2. * 3 year performance greater than benchmark I + 3 year R2 is greater than 95% Passed IPS Screen 3. 3 year performance greater than 50% of peers
4. 3 year Sharpe Ratio greater than 50% of peers
5. * 3 year Sortino Ratio greater than 50% of peers I +3 year Tracking Error less than 90% of its peers
6. *5 year performance greater than benchmark I +5 year R2 is greater than 95% Informal Watch
7. 5 year performance greater than 50% of peers
8. 5 year Sharpe Ratio greater than 50% of peers
9. * 5 year Sortino Ratio greater than 50% of peers I +5 year Tracking Error less than 90% of its peers Formal Watch
10. Expense Ratio less than 50% of peers
11 . Investment Style is consistent with the fund's objectives.
* /PS Investment Criteria used for actively managed investment options I +/PS Criteria used for passively managed index investment options.
• Performance Statistic Definitions:
Sharpe Ratio - Measures an investment's reward per unit of risk . It is ca lculated by taking the investment's average monthly return in excess of the Treasury bill return (presumed risk free rate of return) and dividing by the monthly standard deviation of excess returns .
Sortino Ratio - Quantifies an investment's reward per unit of downside risk. It is ca lcu lated similar to the Sharpe Ratio, except that it uses the month ly standard deviation of excess returns in negative markets in the denominator of the formu la.
R2 - Assesses the corre lation between an investment's return with that of its benchmark index. R2 values range from 0 to 100 and a high R2 (greater than 95) implies that the investment returns are in-line with the movements of the benchmark index more than 95 % of the time.
Tracking Error - Evaluates the consistency of returns by measuring the standard deviation of the difference between the returns of the investment option and those of the benchmark index. Tracking Error should be lower than 90% of the peer group.
• Watch Methodology:
Passed IPS Screen: An investment is in good standing if it passes at least 7 of the 11 Watchlist criteria.
' : An investment will be placed on Informal Watch if it fails 5 of the 11 Watchlist criteria . An investment may be on Informal Watch for a tota l of 4 consecut ive quarters, after which it must meet 7 of the 11 Watchlist criteria or be placed under Formal Watch .
Formal Watch: An investment wi ll be placed on Formal Watch if it fails 6 or more of the Watchlist criteria . An investment may be on Formal Watch for 3 consecutive quarters, after w hich the Investment Advisor wi ll take one of three steps as outlined in the !PS.
* UBS This illustra tion is for informational purposes only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. The alerts and watch list criteria provided are based on the criteria from your Investment Policy Sta tement and are being provided to assist retirement plan fiduciaries in evaluating investment options offered in their retirement plan. A number of different factors should be considered when choosing to add, remove or maintain retirement plan investment options.
Pl A ts % f pt Previous Current Category Investment Option (;.~ 1 .;s:, Ass:ts En~n 1 2 3 4 5 6 7 8 9 10 11 Quarter Quarter
ry Sta tus Status
Large Blend Vanguard S&P 500 ETF (VOO) $4,710,847 13.8% May-16 / v • " • / • " ,., / • •
Large Growth Bahl & Gaynor Large Cap Growth $3,562,942 10.4% Sep-09 x x " " " " " " x ./ • •
LargeValue WestwoodLargeCapValue $3,431.404 10. 1% Jul-08 ./ v ./ / ,; / / .,., / / ••
Mid Cap Blend Vanguard Mid Cap Index ETF (VO) $2 ,449,301 7.2% Mar-20 I ./ ,, ./ v' ,; .,/ " / " ./ " •
Mid Cap Value Seizert Mid Cap Value $0 0.0% Sep-17 / " " " x " " " " / ,, • •
MidCapGrowth ApexSMIDCapGrowth $2,109,588 6.2% Jul-15 x x x x x >< • x • / ....
SmallValue GabelliSmallCapValue $1,840.4 14 S.4% Jun-01 / "' / >1 ./ v " / " ./ ••
Foreign Large Blend Lazard International Equity $2,744,056 8.0% Jun-01 ,. ./ v / -.1 " " " " " / • Q Diversified Emerging Markets Lazard Emerging Markets Equity (L2EMX) $1,205,460 3.5% Dec-07 • " " " >< " " • ./ ,, Ga. •
Intermediate Core Bond Bradford & Marzec Fixed Income $5,333,488 15.6% Sep-09 ./ ,, ./ " / / / ./ ./ ,, • •
Intermediate Core Bond C.S. McKee Fixed Income $2,548,522 7.5% Aug-09 • x .,.,. ./ >< " ./ • ./ • ./ • •
NontraditionalBond Bramshill lncomePerformance(BRM5X) $1,194,344 3.5% Mar-79 x • x " NIA NIA NIA NIA " ./ • 0 Alternative Investments
Alternative Investments
Alternative Investments
Cash
$ UBS
Cavendish Managed Futures $1,046,052 3.1% May-76
Graham Absolute Return Hedge Fund $989,435 2.9% Apr-79
Whitebox Multi-Strategy Hedge Fund $944,236 2.8% Apr-79
Cash $0 0.0% Jun-01
Total Plan Assets: S34, 110,089 100%
Th is illustrat ion 1s for informational purposes only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. A number of different factors should be considered when choosing to add, remove or maintain retirement plan investment options.
TOTAL RISK REWARD * UBS CAPITAL MARKET LINE ANALYSIS - GROSS RETURNS
5 YEAR PERIOD
MARCH 31, 2015 TO MARCH 31, 2020
rlJ More Return i 1
Less Risk
I 161
~ 11 i L :::> f-w 0::: LL 0 6 w f-<{ 0:::
1
Less Return Less Risk
.A. Bahl & Gaynor LgCap Oual Grow··
' • Polen Capital Polen Focus Grow+ Iii Vanguard Growth ETF ..
\1 T. Rowe Price Blue Chio Growth ..
, + Russe\1 1000 Growth
__________ .
==:;-90 Day U.S. Treasury Bill
0
ROR
7.79
13.82
9.17
10.74
10.36
RISK BENCHMARK USED FOR THIS ANALYSIS: RUSSELL I 000 GROWTH
•
.&
More Return I More Risk
~------ ----~+'Y~-
l}<ussell 1000 Growth
Less Return More Risk
--------------~--··---·---·--- ~
5 10 STANDARD DEVIATION
Std Dev Pop Alpha
14.25 -1.28
14.18 4.03
14.96 -1.08
15.25 0.67
14.92 ; 0.00
Beta
0.88
0.91
1.00
0.97
1.00
15 20
R-Squared
0.85
0.91
0.99 --I
0.90
1.00
**THIS INVESTMENT OR STRATEGY IS REVIEWED BY UBS. SEE "IMPORTANT INFORMATION" SECTION FOR ADDITIONAL INFORMATION. + THIS INVESTMENT OR STRATEGY IS NOT AVAILABLE THROUGH UBS. SEE "IMPORTANT INFORMATION" SECTION FOR ADDITIONAL INFORMATION.
* UBS MARKET CAPTURE ANALYSIS
GROSS RETURNS
0 f:= <{ 0::: w 0::: ::J f-0... <{ 0 w 0
~-
I J Outperforms in 125 1 Pos. & Neg. Qtrs.
I I
100j ~
75
50
5 YEAR PERIOD
MARCH 31, 2015 TO MARCH 31, 2020
---- --- ---- - - -- ---Underperforms in Neg. Qtrs.
Outperforms in Pos. Qtrs.
• >i=1 - r+co \I - :.......i
sAI 1000 Growth
U5 25 0... ::J
ol ! I
I Underperforms in Pos. Qtrs. Underperforms in , Outperforms in Neg. Qtrs. Pos. & Neg. Qtrs.
-25=!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-25 0 25 50 75 100 125 DOWNSIDE CAPTURE RATIO
--------Up Cap Ratio Onside Cap Ratio -------
A Bahl & Gaynor LgCap Qual Grow.. : 88.61 105.81 • Polen Capital Polen Focus Grow+ -,- - 105.05 73.62 -------II Vanguard Growth ETF.. , 94.20 101.80 \J T. Rowe Price Blue Chip Growth.. r--- 97.89 92.53 + Russell 1000 Growth 100.00 100.00 -- ----- - - - - - -
RISK BENCHMARK USED FOR TH IS ANALYSIS : RUSSELL I 000 GROWTH
**TH IS INV ESTMENT OR STRATEGY IS REVIEWED BY UBS . SEE "IMPORTANT INFORMA T!ON" SECTION FOR ADDITIONAL INFORMATION. + THIS INVESTMENT OR STRATEGY IS NOT AVAILABLE THROUGH UBS. SEE "IMPORTANT INFORMATION " SECTION FOR ADDITIONAL INFORMATION.
* UBS TOTAL RISK REWARD
CAPITAL MARKET LINE ANALYSIS - GROSS RETURNS
5 YEAR PERIOD
MARCH 31, 2015 TO MARCH 31, 2020
(I More Return -- --· -- -- --
4i Less Risk
! ! ! i
i
3i[
~ 2 :::> 1-w 0:::: '
~ 11 :
...
~Bill
---1- i I
~oi! ~ I , I +
•
! I ~ ; r- - - ----- --- - - ~·---==-- ---1 I MSCI EAFE-Net._________ .
-1 i I ------- \/
More Return More Risk
I ! , I -------i i Less Return ---i_ess Return i I Less Risk MoreRisk
-2 !
0 5 10 15 20 25 STANDARD DEVIATION
ROR Std Dev Pop Alpha Beta _ __ R-Squared ---- --.6. MFS Intl Divers ificat~~ I .. - 2.75 14.89 3.24 0.95 0.96 ---- --·
8 Invesco Oppenheimer Intl Dvrs Y .. 1.94 16.24 2.69 1.03 --- 0.94
II Vanguard Total International Stock ETF .. -0.66 16.06 0.10 1.03 0.98
[v Lazard Asset EMESelect ADR .. --
-1.07 21 .59 0.92 1.14 -- 0.66
• Lazard Asset IESelect ADR-SMA .. -0.36 15.24 i 0.24 0.97 -- 0.95
I.A MSC I EAFE Net -----
L ·-
-0.62 15.37 0.00 1.00 1.00
R.ISK BENCHM ARK USED FOR THIS ANALYSIS : MSC! EA FE NET
** THIS INVESTMENT OR STRATEGY IS REVIEWED BY UBS . SEE "IMPORTANT INFOR.MA TION" SECTION FOR ADDITIONAL INFORMATION.
* UBS MARKET CAPTURE ANALYSIS
GROSS RETURNS
5 YEAR PERIOD
MARCH 31, 2015 TO MARCH 31, 2020
~erformsin i Pos. & Neg. Qtrs. Underperforms in Neg . Qtrs .
Outperforms in Pos. Qtrs.
125 ~
0 100~ ~ i <( ' lY I w lY :::> lo... <( 0 w 0 (/) 0.... :::>
75i
50-i
25
o ~
• v ... -··-- - -MSCI EAFE Net
Underperforms in Pos. Qtrs. Underperforms in , Outperforms in Neg. Otrs. Pos. & Neg . Otrs.
-25 ~1 '----~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-25 0 25 50 75 100 125 DOWNSIDE CAPTURE RATIO
_ _ ___ __ U~p_C_ap Ratio ____ D_n_s_id_e_C_a~p_R_a_t_io __________ _
I .A. MFS Intl Diversification I.. =-:::::=_ -==--- 11 ~ --- - - --- --- -=::__-==-- 84.07 ---4 9 Invesco Oppenheimer Intl Dvrs Y.. 121 .81 97.26
1
111 Vanguard Total International Stock ETF .. +- -- 100.62 -==----==------ __ 1_0_0-.7-8 ____________ _
. \l Lazard Asset EMESelect ADR.. 116.20 _____ 11_4_.9_6 ___________ __, + Lazard Asset IESelect ADR-SMA"-.-- 97 .78 _ _ _ 9_6_.4_0 ___ ___ _____ _ 1.lt. MSCI EAFE Net ---- 100.00 --~- -- 100.00
__ ____J
RISK BENCHMARK USED FOR THIS ANALYSIS: MSC! EAFE NET
•• THIS INVESTMENT OR STRATEGY IS REVI EWED BY UBS. SEE "IMPORTANT JNFORMA TION" SECTION FOR ADDITIONAL INFORMATION.
The City of Birmingham –
Retirement Investment Committee
Update June 12, 2020
2
City Of Birmingham Retirement And Retiree Health Plan – Financial Consultant Update
• On March 24, 2020, the City of Birmingham’s investment advisory firm, The Gasper
Group, merged with Flagship Financial Partners. FFP has offices in Connecticut, Maine,
Texas, and Florida. Note that The Gasper Group has been working selectively with FFP
since 2015
• On June 3, 2020, Steve Gasper announced that he would be stepping down from his
duties as a financial consultant to Birmingham’s Retirement and Retiree Health Care
Plans effective immediately. Supporting the City of Birmingham in Steve’s absence will
be David Gasper, Matt Lasko, Megan Smith, and Meredith Barber (see attached Bios)
• The combined Gasper Group and FFP has created a UBS Signature Team which
allows for enhanced support within the firm. The combined team presently has ~$12
billion of assets under management mixed between retirement plans (90.3%), retail
customers (9.4%), and public/non-profit clients (0.3%)
3
City Of Birmingham Retirement And Retiree Health Plan – RFP Update
• In December 2019, it was recommended to the Retirement Board by the Investment
Committee that the City of Birmingham execute an RFP on the Retirement and Retiree
Health Care plans. An RFP is a best practice and something that should be performed
periodically to ensure that Plan fees and returns are competitive and that the asset
allocation approach remains consistent with other retirement plans
• The original RFP timetable included determining which financial consultants to interview
in 1H 2020, formally executing an RFP, and making a recommendation to the Retirement
Board in the 2H of 2020
• With the disruptive nature of COVID-19 on the financial markets and with doing business
(at the moment) in a traditional manner, the Investment Committee recommends that the
RFP be put on hold for the remainder of 2020. Assuming, however, that the business
climate stabilizes, the newly proposed 2021 RFP timetable would mirror the prior 2020 plan
and conclude with a formal recommendation to the Retirement Board in the 2H of 2021.
This approach also allows us time to get to know the team at Flagship Financial Partners
Matthew Lasko, CFP®
Managing Director–Private Wealth ManagementFinancial AdvisorSenior Retirement Plan ConsultantSenior Institutional Consultant
Matt Lasko is the founding member and leader of Flagship Financial, an elite advisory team with locations in Texas, Connecticut, Maine, Florida and Michigan. A Certified finanCial PlannertM professional and nationally recognized consultant on corporate retirement plans, Matt is strategically positioned as the architect of the team’s overall strategies for both affluent families and institutional clients.
Serving multiple verticals of business, every member of the team holds themselves to high standards of service and advice, which is why Flagship Financial Partners is one of the fastest-growing teams within UBS. Additionally, Matt pioneered a successful partnering business, creating a custom retirement plan solution for hedge funds and private equity firms. This dichotomy of service presents clients with opportunities for advice.
Matt previously served as Co-chair of the UBS Senior Retirement Plan Consultant Committee and was a Principal Financial Group Elite Advisor Council member. Committed to providing relevant advice on the retirement plan market, Matt often speaks on panels and lectures on topics related to retirement and 401(k) plans.
Having graduated from Tufts University, Matt now lives in New Canaan, CT with his wife and two children. In spare time Matt enjoys traveling, marathon running/training, fly-fishing, contemporary art and theatre.
At a glance
– B.A., Tufts University
– Certified finanCial PlannerTM (CFP®) professional
– Former Co-chair of the UBS Senior Retirement Plan Consultant Committee
– Former Principal Financial Group Elite Advisor Council member
– Financial Times FT 401 Retirement Advisers, 2016, 2018, 2019
– Forbes Best-In-State Wealth Advisor, 2020
– 2020 Top 100 Retirement Plan Advisors
Flagship Financial PartnersUBS Financial Services Inc.Private Wealth Management
Dallas100 Crescent Court, Suite 400Dallas, TX 75201
Connecticut750 Washington Boulevard, 11th FloorStamford, CT 06901
ubs.com/team/flagship
Backed by the global resources of UBSWith more than 150 years of wealth management experience at its core, UBS focuses on providing relevant guidance, differentiated global perspectives, diverse strategies and solutions for private, corporate and institutional clients worldwide. Drawing upon an integrated mix of investment banking and asset management businesses, we access the deep resources of our firm to deliver the trusted financial advice our clients seek today to confidently move forward.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers both investment advisory services and brokerage services. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/workingwithus. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified finanCial PlannerTM in the US. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.
Megan L. Smith, CFA®
Vice President–Private Wealth ManagementFinancial AdvisorSenior Retirement Plan ConsultantUBS Institutional ConsultingWealth Advisor
Bringing over a decade of experience as a Senior Retirement Plan Consultant, Megan is an integral part of Flagship Financial Partners. Based in our Dallas, TX office, she works with retirement plan clients across the country, providing keen insight and strategies to a number of companies. A CFA® charterholder, Megan spearheads our team’s investment manager and record keeper due diligence, portfolio construction and financial planning practices.
Megan is a graduate of the University of Texas. She lives in Dallas with her husband, Sean, and two young daughters, Charlotte and Claire. She loves UT sports, is a member of her neighborhood’s book club.
At a glance
– B.B.A. in International Business, University of Texas
– CFA Charterholder
– NAPA Top Women Retirement Advisors, 2015, 2018
– NAPA Top Advisors under 40, 2018
– Institutional Consultant
– Financial Times Top Retirement Advisor, 2018
– Co-chair UBS Retirement Consulting Advisory Council
– Member, Principal Financial Group Elite Advisor Council
– Member, Prudential Financial Group Elite Advisor Council
Flagship Financial PartnersUBS Financial Services Inc.Private Wealth Management 100 Crescent Court, Suite 400Dallas, TX [email protected]
ubs.com/team/flagship
Backed by the global resources of UBSWith more than 150 years of wealth management experience at its core, UBS focuses on providing relevant guidance, differentiated global perspectives, diverse strategies and solutions for private, corporate and institutional clients worldwide. Drawing upon an integrated mix of investment banking and asset management businesses, we access the deep resources of our firm to deliver the trusted financial advice our clients seek today to confidently move forward.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers both investment advisory services and brokerage services. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/workingwithus. For designation disclosures, visit ubs.com/us/en/designation-disclosures. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.
Flagship Financial Partners Our team
UBS Financial Services Inc.750 Washington Boulevard11th FloorStamford, CT 06901
ubs.com/team/flagship
Joe St. Onge, CFA®
Senior Wealth Strategy [email protected]
Joe has been a member of Flagship Financial Partners since 2016 and serves as the team’s investment analyst for its institutional clients. His primary responsibilities are investment manager search and selection and closely working with the team’s institutional clients in a relationship management capacity.
He also assists the team’s defined contribution and defined benefit retirement plan clients with plan design, fiduciary best practices and governance. Joe’s chief goal is to help investment committees and their plan participants and/or beneficiaries achieve positive financial outcomes.
Joe attended Loyola University of Maryland, where he earned a bachelor’s degree in business administration, and is a CFA® charterholder. Joe contributes to the Cystic Fibrosis Foundation and the Live4Evan Organization, which supports the families of children with congenital heart disease.
At a glance
– Bachelor of Business Administration with a concentration in marketing, Loyola University Maryland
– CFA® charterholder
– Holds FINRA Series 7 and Series 66 licenses.
Meredith FarberFinancial [email protected] A financial advisor with a diverse background within the industry, Meredith has over a decade of experience and is Flagship’s investment analyst.
She joined UBS in 2016 out of a desire to work more closely with clients and is committed to instilling financial confidence and providing clarity for her high net worth clients. Working in tandem with the rest of the Flagship team, she provides thoughtful analysis and advises on investment strategy and tactical positioning per the current macroeconomic landscape.
Backed by the global resources of UBSWith more than 150 years of wealth management experience at its core, and drawing upon an integrated mix of investment banking and asset management businesses, UBS focuses on providing relevant guidance, differentiated global perspectives and diverse strategies and solutions for private, corporate and institutional clients worldwide. We access the deep resources and wealth management experience of this firm to deliver the trusted financial advice our clients seek today to confidently move forward.
1 of 2
Her experience includes work within both equity and fixed-income product areas. As an investment analyst at Mirae Asset Global Investments, she covered the consumer staples sector globally. At AllianceBernstein she worked as an associate portfolio manager focusing on fixed-income portfolio management roles, handling separately managed institutional accounts and mutual funds across various fixed income strategies. She began her career at Bank of America Merrill Lynch, focusing on risk management of the firm’s structured credit products trading desk.
Meredith graduated from Penn State University with a B.S. in economics from the Smeal College of Business. She holds her FINRA series 7, 63, and 65 securities licenses.
Meredith is committed to UBS and to her community. She is co-chair of the firm’s All Bar None chapter, covering Westchester and Fairfield counties. She also volunteers for Ali Forney Center and is a former TEAK Fellowship mentor. Meredith lives in New York and loves to travel, cook and swim.
At a glance
– B.S. in Economics, Penn State University, Smeal College of Business
– Level III CFA® candidate
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers both investment advisory services and brokerage services. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/workingwithus. For designation disclosures, visit ubs.com/us/en/designation-disclosures.
© UBS 2020. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. BIO_Flagship Financial Partners_Advisors Team_v6
2 of 2
MEMORANDUM DATE: June 3, 2020
TO: Retiree health Care Fund Investment Committee
FROM: Mark Gerber, Finance Director/Treasurer Thelma Golden, Treasury Consultant
SUBJECT: Retirement Investment Committee Recommendations
The Retirement Investment Committee held a regular virtual meeting on June 3, 2020, to review the performance of the fund 's investment managers, the asset allocation of the fund , prospective large-cap growth equity managers, and prospective international diversified mutual funds. The UBS Financial Services/Flagship Financial Partners team and the Investment Committee are recommending the following actions:
The first recommendation is to terminate the relationship with Bahl & Gaynor for management of a large-cap growth equity fund and to transfer those funds into the Polen Focus Growth strategy managed by Polen Capital Management.
The second recommendation is to terminate the relationship with Lazard in both international and emerging market strategies and to transfer those assets into the MFS International Diversification I mutual fund .
The Retiree Health Care Fund Investment Committee is requested to take the following actions in two separate motions.
SUGGESTED ACTIONS:
1. To concur in the recommendation of the Retirement Investment Committee and the UBS Financial Services/Flagship Financial Partners team to terminate the relationship with Bahl & Gaynor; to enter into an agreement with Polen Capital Management, LLC to invest those funds in their Polen Focus Growth strategy for the Retiree Health Care Fund ; to authorize Secretary-Treasurer Mark Gerber to execute the agreement on behalf of the Retiree Health Care Fund Investment Committee; to direct Comerica Bank to create a new large-cap growth equity fund account for the Retiree Health Care Fund to be managed by Polen Capital Management, LLC.
A
2. To concur in the recommendation of the Retirement Investment Committee and the UBS Financial Services/Flagship Financial Partners team to terminate the relat ionship with Lazard Capital in both the developed international and emerging market strategies; to transfer those funds into the MFS International Diversification I mutual fund for the Retiree Health Care Fund ; to direct Comerica Bank to create a new international account for the Retiree HealthCare Fund.
7B
MEMORANDUM DATE: June 3, 2020
TO: Retiree Health Care Fund Investment Committee
FROM: Mark Gerber, Finance Director/Treasurer
SUBJECT: Request for Consent to Assignment of Tortoise Credit Strategies Contract
We have received the attached communication from Tortoise Credit Strategies, LLC that reports the anticipated sale of all of their assets to R Squared BM LLC. Attached is a request from Tortoise Credit Strategies requesting consent to assign their contract with the City of Birmingham Employee Retirement System to R Squared.
SUGGESTED ACTION:
To approve R Squared BM LLC as an investment manager for the Birmingham Retiree Health Care Fund; and, to authorize Mark Gerber to sign the Consent to Assignment.
c
f;!S\ Tortoise ~ Credit Strategies
April 28, 2020
We are pleased to inform you that Tortoise and R Squared BM LLC (" R Squared") have announced the signing of a definitive agreement for R Squared (which will operate as Ducenta Squared Asset Management ("Ducenta")) to acquire the assets of Tortoise Credit Strategies, LLC ("Tortoise").
We are excited and energized by the partnership with Ducenta, and view this transaction as a positive for both our clients and employees. In our view, Ducenta's focused expertise within the fi xed income markets, their solutions oriented approach with clients, and their extensive global client network, are significant pillars of st rength. In addition, the long term strategic investment into the Tortoise credit platform should deepen our financial flexibil ity, continue to support our objectives of strong investment performance and client service and facilitate continued employee development and strategic growth initiatives. The investment process will remain unchanged, and the majority of the existing team in Los Angeles will be joining Ducenta, with the two of us becoming Co-Heads of Fixed Income. We believe this transaction is beneficial to all parties involved; the client, employees, and both the buyer and seller.
As part of this transaction, your investment management agreement with Tortoise will be assigned to R Squared, which is expected to have their registration with the SEC f inalized prior to the closing of the t ransaction. Accordingly, pu rsuant to the terms of your investment management agreement, your written consent to such assignment is required, which will be effective when the transaction closes. Due to the current regulatory environment regarding COVID-19 precautions, by signing this consent you are agreeing to accept this communication electronically (despite any provision in your investment management agreement that may require an alternative form of communication). Please complete and sign the attached form and return electronically only, by June 12, 2020. If you are no longer the current authorized signer for this entity, there is an option to reassign the electronic signing of this document. Please contact Tracy DeAndrea, Client Relations Manager at (913) 702-7436 or [email protected] for assistance with DocuSign.
Following the transaction , R Squared wil l be the legal entity serving as your investment adviser and will continue to manage your account according to the terms of your current Tortoise investment management agreement and investment guidelines.
If you have any questions regarding the assignment of your advisory contract as a result of the asset purchase with respect to Tortoise, or do not consent, please notify us w ithin 45 days from your receipt of this letter (and in any event, no later than June 12, 2020) by contacting Tracy DeAndrea, Client Relations Manager at (913) 702-7436 or via email at [email protected].
We expect the transaction to be completed by the end of the th ird calendar quarter of 2020, subject to customary regulatory and closing conditions .
Than k you for your investment and continued support.
Since rely,
~~ e/~7-Jf Jeffrey Brothers Gregory Haendel
[see next page]
555 W. 5th Street, Suite 3700 \ Los Angeles, CA 90013 \ (213) 687 9170 WWW .tortoisecredit.com
fJ:i\ Tortoise \W Credit Strategies
I have read and understand the content above. and, by signing below, I hereby agree to the assignment of our investment management agreement. By signing, I represent that I am duly authorized and have the full authority to enter into this agreement.
Print name of entity I account
Print name and title of authorized signatory
Signature
Date
Please return a copy of this page at your earliest convenience or in any event no later than June 12, 2020, electronically only to Tracy DeAndrea at [email protected].
555 W. 5th Street, Suite 3700 I Los Angeles, CA 90013 I (213) 687 9170 www.tortoisecredit.com