City of Milwaukee Employes Retirement System

Transcript

1 June 30, 2015 City of Milwaukee Employes Retirement System Investment Measurement Service Quarterly Review The following report was prepared by Callan Associates Inc. ("CAI") using information from sources that include the following: fund trustee(s); fund custodian(s); investment manager(s); CAI computer software; CAI investment manager and fund sponsor database; third party data vendors; and other outside sources as directed by the client. CAI assumes no responsibility for the accuracy or completeness of the information provided, or methodologies employed, by any information providers external to CAI. Reasonable care has been taken to assure the accuracy of the CAI database and computer software. Callan does not provide advice regarding, nor shall Callan be responsible for, the purchase, sale, hedge or holding of individual securities, including, without limitation securities of the client (i.e., company stock) or derivatives in the client s accounts. In preparing the following report, CAI has not reviewed the risks of individual security holdings or the conformity of individual security holdings with the client s investment policies and guidelines, nor has it assumed any responsibility to do so. Advice pertaining to the merits of individual securities and derivatives should be discussed with a third party securities expert. Copyright 2015 by Callan Associates Inc.

2 Table of Contents June 30, 2015 Capital Markets Review 1 Total Fund Investment Manager Asset Allocation 8 Actual vs. Target Asset Allocation 9 Total Fund vs. Total Public Fund Database 11 Quarterly Total Fund Attribution 14 Cumulative Total Fund Attribution 15 Investment Manager Returns - Gross of Fee 16 Investment Manager Returns - Net of Fee 20 Asset Class Rankings 22 Callan Research/Education 23 Disclosures 26

3 Capital Markets Review Capital Markets Review

4 ΧΑΛΛΑΝ ΙΝςΕΣΤΜΕΝΤΣ ΙΝΣΤΙΤΥΤΕ ΧΜΡ Πρεϖιεω Σεχονδ Θυαρτερ 2015 Τηισ Πρεϖιεω χονταινσ εξχερπτσ φροm τηε υπχοmινγ Χαπιταλ Μαρκετ Ρεϖιεω (ΧΜΡ) νεωσλεττερ, ωηιχη ωιλλ βε πυβλισηεδ ατ τηε ενδ οφ τηε mοντη. Υνδερωηελmινγ Υ.Σ. ΕΘΥΙΤΨ Λαυρεν Ματηιασ, ΧΦΑ Τηε σεχονδ θυαρτερ γοτ οφφ το α προmισινγ σταρτ τηρουγη Απριλ ανδ Μαψ. Ιν ϑυνε, ηοωεϖερ, τηε Σ&Π 500 Ινδεξ δροππεδ αλmοστ 2%, ρεδυχινγ Υ.Σ. εθυιτψ ρεσυλτσ φορ τηε τηρεε mοντη περιοδ το 0.27%. Βεφορε δεχλινινγ, mαρκετ ινδιχεσ ρεαχηεδ νεω πεακσ mοστ νοταβλψ τηε ΝΑΣDΑΘ Χοmποσιτε συρπασσεδ τηε αλλ τιmε ηιγη ιτ πρεϖιουσλψ σετ ιν Μαρχη Dεσπιτε υνδερωηελmινγ εθυιτψ ρεσυλτσ, τηε Υ.Σ. εχονοmψ δοεσ ηαϖε σοmε ταιλωινδσ. ϑυνε σ υνεmπλοψmεντ ρατε δεχλινεδ το Χοντινυεδ ον πγ. 2 Γρεεκ Γλοοm ΝΟΝ Υ.Σ. ΕΘΥΙΤΨ Ιρινα Συσηχη Νον Υ.Σ. mαρκετσ mαναγεδ το εκε ουτ α σλιγητλψ ποσιτιϖε ρετυρν (ΜΣΧΙ ΑΧWΙ εξ ΥΣΑ Ινδεξ: +0.72%) δεσπιτε ηειγητ ενεδ χονχερνσ αβουτ Γρεεχε ανδ Χηινα. Εϖεν ωιτη α Γρεξιτ λοοmινγ, Χηινα τηρεατενεδ το στεαλ τηε σποτλιγητ ιτσ Σηανγηαι Composite Index dropped nearly 20% in the inal weeks of the θυαρτερ. Βεφορε νοσεδιϖινγ, τηε Ινδεξ ωασ ατ α σεϖεν ψεαρ ηιγη ανδ υπ ρουγηλψ 150% φροm ψεαρ ενδ Βοτη τηε δεϖελοπεδ ΜΣΧΙ Wορλδ εξ ΥΣΑ Ινδεξ (+0.48%) ανδ τηε ΜΣΧΙ Εmεργινγ Μαρκετσ Ινδεξ (+0.82%) δελιϖερεδ mεα γερ ρετυρνσ. ΜΣΧΙ ΑΧWΙ εξ ΥΣΑ Γροωτη (+0.74%) στοχκσ Βροαδ Μαρκετ Θυαρτερλψ Ρετυρνσ U.S. Equity (Russell 3000) +0.14% Non-U.S. Equity (MSCI ACWI ex USA) +0.62% -1.68% U.S. Fixed (Barclays Aggregate) -1.54% Non-U.S. Fixed (Citi Non-U.S.) Cash (90-Day T-Bills) 0.01% Sources: Barclays, Citigroup, Merrill Lynch, MSCI, Russell Investment Group Ρατεσ Μοϖε Ηιγηερ Υ.Σ. ΦΙΞΕD ΙΝΧΟΜΕ Κεϖιν Μαχηιζ, ΧΦΑ, ΦΡΜ Ιντερεστ ρατεσ mοϖεδ ηιγηερ ιν τηε σεχονδ θυαρτερ γιϖεν upward pressure from global interest rates as delationary fears showed signs of relenting. The yield curve steepened after ive consecutive quarters of lattening. The Βαρχλαψσ Αγγρεγατε Ινδεξ φελλ 1.68%. Χοντινυεδ ον πγ. 4 Dεαλ ορ Νο Dεαλ ΝΟΝ Υ.Σ. ΦΙΞΕD ΙΝΧΟΜΕ Κψλε Φεκετε The developed ixed income markets were characterized by ris ινγ ιντερεστ ρατεσ, ρεϖερσινγ τηε δοωνωαρδ τρενδ οϖερ τηε παστ σεϖεραλ θυαρτερσ. Ιν α δραmατιχ ρεϖερσαλ, ψιελδ ον Γερmαν βυνδσ χλιmβεδ το 0.76% ιν ϑυνε, υπ φροm τηε αλλ τιmε λοω οφ 0.05% ιν mιδ Απριλ. Ρισινγ ιντερεστ ρατεσ ωερε σπυρρεδ βψ βριγητερ νεωσ ιν Ευροπε ασ βοτη ηιρινγ ανδ πριϖατε σεχτορ γροωτη αππροαχηεδ four-year highs. In Europe, a whiff of inlation in May (0.2% mοντη οϖερ mοντη) προϖιδεδ σοmε εϖιδενχε τηατ τηε Ευροπεαν Χεντραλ Βανκ σ ασσετ πυρχηασε προγραm ωασ ωορκινγ. Χοντινυεδ ον πγ. 3 Χοντινυεδ ον πγ. 5 Κνοωλεδγε. Εξπεριενχε. Ιντεγριτψ.

5 Υ.Σ. Εθυιτψ: Υνδερωηελmινγ Χοντινυεδ φροm πγ %, ηουσινγ ιmπροϖεδ ασ mορε Αmεριχανσ τοοκ ουτ mορτ gages, and consumer conidence ticked higher. However, macro concerns still exist due in part to a irst-quarter decline in (αννυαλιζεδ) ρεαλ ΓDΠ οφ 0.2% ανδ Γρεεχε σ τυρmοιλ. Τηε Φεδ σ χονχερνσ αβουτ εχονοmιχ γροωτη περσιστεδ, φυρτηερ δελαψινγ α ποτεντιαλ ινχρεασε ιν ιντερεστ ρατεσ. Υνδερλψινγ Υ.Σ. φυνδαmεν tals appear solid, with corporate proit margins near highs and leverage well below historical averages. This is relected in ϖαλυατιονσ ωιτη χυρρεντ Π/Ε ρατιοσ αχροσσ mαρκετ χαπιταλιζατιονσ αβοϖε 20 ψεαρ αϖεραγεσ. ςαλυε Ινδεξ; 1.2%). Σmαλλ χαπ γροωτη χοντινυεδ το βεατ σmαλλ χαπ ϖαλυε ιν αλλ αννυαλιζεδ τιmε περιοδσ οφ λεσσ τηαν 10 ψεαρσ. Μεγα χαπσ ανδ mιχρο χαπσ βοτη αδϖανχεδ (Ρυσσελλ Μιχροχαπ Ινδεξ; +2.8% ανδ Ρυσσελλ Τοπ 50; +1.5%). Σεχτορσ εξηιβιτεδ διϖεργεντ θυαρτερλψ ρεσυλτσ αχροσσ mαρκετ χαπιταλιζατιονσ. Σmαλλ χαπ Ματεριαλσ δεχλινεδ σηαρπλψ ϖερ sus a slight dip in large cap. Health Care boosted both large ανδ σmαλλ mαρκετ χαπσ βυτ ωασ mυχη στρονγερ ιν σmαλλ χαπ. Υτιλιτιεσ ωερε τηε ωορστ περφορmινγ σεχτορ αχροσσ χαπιταλιζα τιονσ ασ ιντερεστ ρατε σενσιτιϖε σεχυριτιεσ δεχλινεδ. Ον α positive note, M&A activity remained strong, with deal low ινχρεασινγ αχροσσ mοστ σεχτορσ. Λαργε ανδ σmαλλ χαπ στοχκσ σηοωεδ σλιγητλψ ποσιτιϖε ρετυρνσ τηισ θυαρτερ (Ρυσσελλ 1000 Ινδεξ; +0.1% ανδ Ρυσσελλ 2000 Ινδεξ; +0.4%) ωηιλε mιδ χαπ τραιλεδ χονσιδεραβλψ (Ρυσσελλ Μιδ Χαπ Ινδεξ; 1.5%). Γροωτη mαινταινεδ ιτσ λεαδ οϖερ ϖαλυε ιν αλλ χαπιταλιζατιονσ, βυτ mοστ δραmατιχαλλψ ιν σmαλλ χαπ (Ρυσσελλ 2000 Γροωτη Ινδεξ; +2.0% ανδ Ρυσσελλ 2000 Νοταβλψ, αχτιϖε mαναγεmεντ ισ ηαϖινγ τηε mοστ συχχεσσφυλ year since the inancial crisis; almost half of active large cap mαναγερσ ηαϖε ουτπερφορmεδ ιν 2015 τηυσ φαρ. Τηισ χοντραστσ with asset lows that continue to low to passive strategies, ωηιχη ηαϖε γροων το βε ονε τηιρδ οφ Υ.Σ. εθυιτψ ασσετσ υνδερ mαναγεmεντ. Θυαρτερλψ Περφορmανχε οφ Σελεχτ Σεχτορσ Ρολλινγ Ονε Ψεαρ Ρελατιϖε Ρετυρνσ (ϖσ. Ρυσσελλ 1000) 8% Russell 1000 Russell % 30% Russell 1000 Growth Russell 1000 Value Russell % 3.16% 1.85% 20% 0% 0.07% -0.54% 10% -4% 0% -4.99% -8% -6.23% -7.03% -10% Health Care Information Technology Materials Utilities -20% Source: Russell Investment Group -30% Source: Russell Investment Group 2

6 Νον Υ.Σ. Εθυιτψ: Γρεεκ Γλοοm Χοντινυεδ φροm πγ. 1 περφορmεδ ιν λινε ωιτη τηειρ ΑΧWΙ εξ ΥΣΑ ςαλυε χουντερπαρτσ (+0.71%). Σmαλλ χαπ στοχκσ χοντινυεδ το χλιmβ αmιδ τηε mαχρο χηαοσ (ΜΣΧΙ ΑΧWΙ εξ ΥΣΑ Σmαλλ Χαπ Ινδεξ: +4.22%). Ιν ιντερνατιοναλ σεχτορσ, Ενεργψ (+2.59%) ωασ βοοστεδ βψ ρισινγ oil prices. Telecommunications (+3.58%) gained on signiicant Μ&Α αχτιϖιτψ. Ινφορmατιον Τεχηνολογψ ( 2.56%) ωασ τηε ωεακεστ sector, dragged down by low earnings in the irst quarter. Global υνχερταιντψ, στυντεδ εαρνινγσ, ανδ ρισινγ ρατεσ υνδερmινεδ τηε ρεmαινινγ νον Υ.Σ. σεχτορσ. Ευροπεαν στοχκσ φαιλεδ το ιmπρεσσ (ΜΣΧΙ Ευροπε Ινδεξ: +0.36%). Γρεεχε χοντινυεδ το δαmπεν ινϖεστορσ σπιριτσ, ενδ ινγ τηε θυαρτερ ωιτη α mισσεδ 1.55 βιλλιον παψmεντ το τηε Ιντερνατιοναλ Μονεταρψ Φυνδ. Γερmανψ σλιππεδ 5.59%, ρεδ across every sector due to slow GDP growth. Health Care was a big detractor (European Health Care: -1.19%). Information Τεχηνολογψ ( 2.44%) ανδ Ινδυστριαλσ ( 1.60%) στοχκσ στρυγγλεδ. Ρολλινγ Ονε Ψεαρ Ρελατιϖε Ρετυρνσ (ϖσ. ΜΣΧΙ ΕΑΦΕ Υ.Σ. Dολλαρ) 40% 30% 20% 10% 0% -10% -20% -30% -40% Source: MSCI MSCI Pacific MSCI Europe MSCI World ex USA βανκ πολιχιεσ. Νεω Ζεαλανδ ( 13.08%) ανδ Αυστραλια ( 6.19%) φελλ δεεπ ιντο τηε ρεδ ασ τηειρ mαϕορ εξπορτσ (δαιρψ ανδ mεταλσ, ρεσπεχτιϖελψ), ωερε ηεαϖιλψ αφφεχτεδ βψ τηε mουντινγ χρισισ ιν Χηινα σ στοχκ mαρκετ. Σο φαρ ιν 2015, τηε κιωι ηασ φαλλεν 13.3% αγαινστ τηε Υ.Σ. δολλαρ. Φινανχιαλσ ιν Αυστραλια ( 7.79%) ωερε ηαmmερεδ βψ σλυγγιση γροωτη ιν τηε σεχονδ θυαρτερ. Τηε MSCI Paciic Index (+1.14%) συρπασσεδ Ευροπε βψ 78 bps, owing mainly to upbeat markets in Hong Kong (+5.96%) and Japan (+3.09%). Hong Kong experienced a lood of ινϖεστmεντ φροm Χηινα. ϑαπαν σ ΓDΠ γρεω ατ αν αννυαλιζεδ 3.9% in the irst quarter of 2015, and Japanese Financials were up 9.36% as banks beneitted from aggressive central Ρεγιοναλ Θυαρτερλψ Περφορmανχε (Υ.Σ. Dολλαρ) MSCI Japan 3.09% MSCI Emerging Markets 0.82% MSCI ACWI ex USA 0.73% MSCI World ex USA 0.48% MSCI Europe 0.36% -2.48% MSCI Pacific ex Japan Source: MSCI Αλτηουγη εmεργινγ mαρκετ Ενεργψ στοχκσ ροσε 8.62% δυε το χλιmβινγ οιλ πριχεσ, τηε ΜΣΧΙ ΕΜ Ινδεξ (+0.82%) ωασ ηιν δερεδ βψ Ινφορmατιον Τεχηνολογψ ( 3.84%). ΕΜ Ασια ( 0.04%) ωασ χηοχκ φυλλ οφ νεγατιϖε στοριεσ. Ινδονεσια ( 13.82%), Μαλαψσια ( 7.88%), ανδ Τηαιλανδ ( 3.30%) αλλ εξπεριενχεδ λετηαργιχ εχονοmιχ γροωτη. Τεχη στοχκσ ιmπεδεδ εθυιτψ mαρ κετσ ιν Σουτη Κορεα ανδ Ταιωαν. Ιν Ινδια, συβσιδινγ γροωτη along with lower-than-expected sales in IT irms made for a ωεακ θυαρτερ ( 3.61%). Χηινα mαναγεδ το γαιν 6.21% δυε το εϖεν λοωερ ιντερεστ ρατεσ ανδ λεσσ ρεστριχτιϖε ρεαλ εστατε πολι cies. However, China s markets were volatile throughout the quarter and crashed in the inal two weeks. Russia (+7.70%) ανδ Βραζιλ (+7.02%) ωερε βριγητ σποτσ, βοτη βυοψεδ βψ χλιmβ ινγ χοmmοδιτψ πριχεσ. Βραζιλ σ γοϖερνmεντ ισ προmισινγ βυδ γετ χυτσ, ανδ Ρυσσια φυρτηερ χυτ ιντερεστ ρατεσ το 11.5%. Ιν Γρεεχε, εθυιτιεσ γαινεδ 5.35% φορ τηε θυαρτερ ιν σπιτε οφ τηε ονγοινγ δεβτ χρισισ, ωηιχη δαmαγεδ ρετυρνσ αχροσσ τηε γλοβε. Κνοωλεδγε. Εξπεριενχε. Ιντεγριτψ. 3

7 Υ.Σ. Φιξεδ Ινχοmε: Ρατεσ Μοϖε Ηιγηερ Χοντινυεδ φροm πγ. 1 Σηορτ τερm ρατεσ ρεmαινεδ σταβλε, ασ τηε Φεδ χοντινυεδ το πεγ τηε φεδεραλ φυνδσ ανδ δισχουντ ρατεσ ατ 0.00% 0.25% ανδ 0.75%, ρεσπεχτιϖελψ. Τηε 10 ψεαρ Υ.Σ. Τρεασυρψ ψιελδ ινχρεασεδ 43 βπσ. Ψιελδσ ον λονγερ τερm βονδσ ινχρεασεδ εϖεν mορε ωιτη τηε 30 ψεαρ Υ.Σ. Τρεασυρψ ψιελδ ινχρεασινγ 59 bps. The market s expectation for the irst hike in the fed φυνδσ ρατε σεττλεδ αρουνδ τηε ενδ οφ Τηε βρεακεϖεν inlation rate (the difference between nominal and real yields) ον τηε 10 ψεαρ Τρεασυρψ ινχρεασεδ 12 βπσ το 1.89% ασ ΤΙΠΣ ουτπερφορmεδ νοmιναλ Τρεασυριεσ. Ρελατιϖε το λικε δυρατιον Τρεασυριεσ, νον Τρεασυρψ σεχτορσ σαω σχαντ γαινσ (ΜΒΣ: +0.05%; ΧΜΒΣ: +0.31%; ΑΒΣ: +0.21%). Ινϖεστmεντ γραδε χορπορατε σπρεαδσ ωιδενεδ ωιτη Υτιλιτιεσ, Φινανχιαλσ, ανδ Ινδυστριαλσ υνδερπερφορmινγ Τρεασυριεσ βψ 1.41%, 0.61%, ανδ 0.94% ρεσπεχτιϖελψ. High yield corporate bonds were among the best performers in the U.S. ixed income market as some energy companies ρεβουνδεδ στρονγλψ. Τηε Βαρχλαψσ Χορπορατε Ηιγη Ψιελδ Ινδεξ ενδεδ τηε θυαρτερ υνχηανγεδ. Νεω ισσυε αχτιϖιτψ ισ ον παχε ωιτη τηε πρεϖιουσ τηρεε χαλενδαρ ψεαρσ. Ψεαρ το δατε, τηερε ωασ αππροξιmατελψ 191 βιλλιον ιν νεω ισσυανχε οφ ηιγη ψιελδ βονδσ. Ηιστοριχαλ 10 Ψεαρ Ψιελδσ U.S. 10-ear Treasury ield 10-ear TIPS ield Breakeven Inflation Rate 6% 5% 4% 3% 2% 1% 0% -1% Source: Bloomberg Υ.Σ. Τρεασυρψ Ψιελδ Χυρϖεσ June 30, 2015 March 31, 2015 June 30, % 4% 3% 2% 1% Φιξεδ Ινχοmε Ινδεξ Θυαρτερλψ Ρετυρνσ Absolute Return Barclays Aggregate -1.68% Barclays Treasury -1.58% Barclays Agencies -0.59% Barclays CMBS -1.06% 0% 0 5 Source: Bloomberg Maturity (ears) Barclays ABS 0.17% Barclays MBS -0.74% Barclays Credit -2.88% Barclays Corp. High ield 0.00% Source: Barclays 4

8 Νον Υ.Σ. Φιξεδ Ινχοmε: Dεαλ ορ Νο Dεαλ Χοντινυεδ φροm πγ. 1 Χονχερνσ αρουνδ Γρεεχε σπρεαδ νεγατιϖιτψ τηρουγηουτ τηε mαρκετσ; Ιταλψ ανδ Σπαιν ωερε εσπεχιαλλψ ηαρδ ηιτ. Βοτη χουν τριεσ ποστεδ ρετυρνσ οφ ρουγηλψ 6.00% φορ τηε θυαρτερ ιν λοχαλ χυρρενχψ τερmσ. Οϖεραλλ, ωιτη τηε εξχεπτιον οφ τηε Υνιτεδ Κινγδοm (+2.00%) ανδ Σωεδεν (+0.34%), υνηεδγεδ ρετυρνσ ιν δεϖελοπεδ mαρκετσ ωερε νεγατιϖε ιν Υ.Σ. δολλαρ τερmσ. Τηε υνηεδγεδ Χιτι Νον Υ.Σ. Wορλδ Γοϖερνmεντ Βονδ Ινδεξ δεχλινεδ 1.54%. Ον α ηεδγεδ βασισ, αλλ δεϖελοπεδ mαρκετσ δροππεδ ασ τηε Υ.Σ. δολλαρ λοστ γρουνδ ϖερσυσ mοστ δεϖελοπεδ mαρκετ χυρρενχιεσ. Τηε ΥΣD ηεδγεδ Χιτι Νον Υ.Σ. Wορλδ Γοϖερνmεντ Βονδ Ινδεξ φελλ 3.19%. Εmεργινγ mαρκετ δολλαρ δενοmινατεδ δεβτ λοστ γρουνδ ασ τηε JPM EMBI Global Diversiied Index διππεδ 0.34% ιν σπιτε οφ στρονγ γαινσ ιν Υκραινε (+36.49%) ανδ ςενεζυελα (+12.73%). Υκραινε ισ νεγοτιατινγ ωιτη φορειγν βονδηολδερσ το ρεστρυχτυρε ιτσ δεβτ. Ιν σπιτε οφ τηε στρονγ θυαρτερ, ιτ ρεmαινσ δοων 4.04% ψεαρ το δατε ανδ 36.77% οϖερ τηε λαστ 12 mοντησ. Τηε λοχαλ βονδ JPM GBI-EM Global Diversiied Index αλσο δεχλινεδ 0.96%. Ρυσσια ωασ αγαιν τηε βεστ περφορmερ αmονγ εmεργινγ mαρκετσ, υπ νεαρλψ 12% φορ τηε θυαρτερ ανδ 29% ψεαρ το δατε. Βραζιλ σ (+6%) λοχαλ βονδσ χοντινυεδ το βουνχε βαχκ φροm α σελλ οφφ εαρλιερ ιν τηε ψεαρ, ωηιλε Τυρκεψ ανδ Ινδονεσια φελλ 5% φορ τηε θυαρτερ. Εmεργινγ Σπρεαδσ Οϖερ Dεϖελοπεδ 6% 5% 4% 3% 2% 1% 0% Emerging Americas 600 bps 400 bps 200 bps 0 bps Source: Barclays 10 Ψεαρ Γλοβαλ Γοϖερνmεντ Βονδ Ψιελδσ 05 U.S. Treasury Germany U.K. Canada Japan 06 Emerging EMEA (Europe, Middle East, Africa) (Βψ Ρεγιον) Emerging Asia Γρεεχε mισσεδ α λαργε παψmεντ δυε το τηε Ιντερνατιοναλ Μονεταρψ Φυνδ ον ϑυνε 30, ωηιχη ωειγηεδ ηεαϖιλψ ον ινϖεστορ σεντιmεντ. Νεγοτιατιονσ βετωεεν Γρεεχε ανδ ιτσ λενδερσ χον τινυεδ βυτ ρεmαινεδ υνχερταιν. Τραδινγ ον Γρεεκ βονδσ ηαλτεδ; ηοωεϖερ, ινδιχατιονσ φροm δεαλερσ εστιmατεδ τωο ψεαρ Γρεεκ δεβτ ψιελδσ ατ αβουτ 50% ανδ 10 ψεαρ δεβτ ατ νεαρλψ 20%. Change in 10-ear ields from 1Q15 to 2Q15 U.S. Treasury 43 bps Germany U.K. 45 bps Canada 33 bps Japan 6 bps Source: Bloomberg 58 bps Κνοωλεδγε. Εξπεριενχε. Ιντεγριτψ. 5

9 Total Fund Total Fund

10 Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund s investment managers as of June 30, 2015, with the distribution as of March 31, Asset Distribution Across Investment Managers June 30, 2015 March 31, 2015 Market Value Weight Market Value Weight Total Domestic Equity $1,444,681, % $1,502,285, % Northern Trust Global 495,480, % 503,438, % BlackRock R1000 Alpha Tilts 138,868, % 151,088, % Cornerstone Investment Partners 188,731, % 191,871, % Polen Capital Management 210,434, % 221,916, % Earnest Partners LLC 125,483, % 135,441, % Dimensional Fund Advisors Inc. 176,885, % 184,679, % CastleArk Management 108,797, % 113,848, % Total Global Equity $350,177, % $355,559, % BlackRock ACWI Value 98,827, % 98,566, % MFS Investment Management 251,349, % 256,993, % Total International Equity $1,088,921, % $1,074,984, % BlackRock ACWI 247,301, % 245,106, % Brandes Investment Partners 440,789, % 433,171, % William Blair & Company 251,929, % 255,152, % Dimensional Fund Advisors Inc. 148,900, % 141,554, % Total Fixed Income $1,268,695, % $1,282,398, % BlackRock Intermediate Agg 280,411, % 282,242, % Reams Asset Management 286,041, % 288,867, % Loomis, Sayles & Company, L.P. 486,180, % 491,839, % Wellington Management Company 216,063, % 219,448, % Total Private Equity $146,174, % $121,161, % Abbott Capital Management ,591, % 17,768, % Abbott Capital Management ,590, % 19,478, % Abbott Capital Management ,775, % 9,726, % Abbott Capital Management ,947, % 4,991, % Abbott Capital Management ,867, % 2,533, % Abbott Capital Management ,156, % - - Mesirow V 57,473, % 52,761, % Mesirow VI 7,508, % 6,816, % NB Secondary Opp Fund III 10,250, % 7,084, % Private Advisors 4,012, % - - Absolute Return $262,981, % $262,224, % Allianz SA ,193, % 68,910, % Newton 63,869, % 65,238, % UBS A & Q 128,918, % 128,075, % Total Real Estate $387,350, % $380,963, % Real Estate 387,350, % 380,963, % Total Cash $25,473, % $28,635, % Cash 25,473, % 28,635, % Total Fund $4,974,456, % $5,008,213, % City of Milwaukee Employes Retirement System 8

11 Actual vs Target Asset Allocation As of June 30, 2015 The top left chart shows the Fund s asset allocation as of June 30, The top right chart shows the Fund s target asset allocation as outlined in the investment policy statement. The bottom chart ranks the fund s asset allocation and the target allocation versus the Public Fund - Large (>1B). Actual Asset Allocation US Equity 29% Target Asset Allocation US Equity 28% Real Estate 8% Absolute Return 5% Cash 1% Private Equity 3% Global Equity 7% International Equity 22% Real Estate 7% Absolute Return 5% Private Equity 2% International Equity 30% Fixed Income 26% Fixed Income 28% $000s Weight Percent $000s Asset Class Actual Actual Target Difference Difference US Equity 1,444, % 28.0% 1.0% 51,834 Global Equity 350, % 0.0% 7.0% 350,177 International Equity 1,088, % 30.0% (8.1%) (403,416) Fixed Income 1,268, % 28.0% (2.5%) (124,152) Private Equity 146, % 2.0% 0.9% 46,686 Absolute Return 262, % 5.0% 0.3% 14,259 Real Estate 387, % 7.0% 0.8% 39,139 Cash 25, % 0.0% 0.5% 25,473 Total 4,974, % 100.0% Asset Class Weights vs Public Fund - Large (>1B) 60% 50% 40% Weights 30% 20% (65) (63) (18) (31) (3) (42) 10% 0% (100) (55) (44) (39) (55) (59) (21) (100) (10%) US Fixed Cash Real International Alternative Global Equity Income Estate Equity Equity 10th Percentile th Percentile Median th Percentile th Percentile Fund Target % Group Invested 94.12% 94.12% 70.59% 69.12% 89.71% 76.47% 26.47% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 9

12 Actual vs Target Historical Asset Allocation The Historical asset allocation for a fund is by far the largest factor explaining its performance. The charts below show the fund s historical actual asset allocation, the fund s historical target asset allocation, and the historical asset allocation of the average fund in the Public Fund Sponsor Database. Actual Historical Asset Allocation 100% 100% 90% 90% 80% 80% 70% 70% 60% Cash Equiv 60% 50% Real Estate 50% 40% Absolute Return Private Equity 40% 30% Fixed Income 30% 20% International Equity 20% 10% Global Equity Domestic Equity 10% 0% 0% Target Historical Asset Allocation 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% Real Estate 50% 40% Absolute Return Private Equity 40% 30% Fixed Income 30% 20% International Equity 20% 10% Global Equity Domestic Equity 10% 0% 0% Average Public Fund Sponsor Database Historical Asset Allocation 100% 100% 90% 90% 80% Real Assets 80% 70% Global Balanced 70% 60% Hedge Funds Intl Fixed-Inc 60% 50% Cash Equiv 50% 40% Global Equity Broad Real Estate 40% 30% Other Alternatives 30% 20% Intl Equity 20% 10% Domestic Fixed Domestic Broad Eq 10% 0% 0% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 10

13 Total Fund Period Ended June 30, 2015 Investment Philosophy The Public Fund Sponsor Database consists of public employee pension total funds including both Callan Associates client and surveyed non-client funds. The Total Fund Reference Index consists of 33% Russell 3000, 28% Barclays Capital Aggregate, 22% MSCI EAFE (net), 10% MSCI World (net) and 7% NCREIF Property (One Quarter in Arrears). Quarterly Summary and Highlights Total Fund s portfolio posted a 0.90% return for the quarter placing it in the 4 percentile of the Public Fund Sponsor Database group for the quarter and in the 64 percentile for the last year. Total Fund s portfolio outperformed the Total Fund Reference Index by 0.83% for the quarter and outperformed the Total Fund Reference Index for the year by 0.21%. Quarterly Asset Growth Beginning Market Value $5,008,213,566 Net New Investment $-79,497,055 Investment Gains/(Losses) $45,740,223 Ending Market Value $4,974,456,734 Performance vs Public Fund Sponsor Database (Gross) 14% 12% 10% (39) (15) (36) (21) 8% 6% (55) (43) 4% 2% 0% (51) (4) (69) (64) (2%) (4%) Last Quarter Last ear Last 3 ears Last 5 ears Last 10 ears 10th Percentile th Percentile Median th Percentile (0.18) th Percentile (0.58) Total Fund Total Fund Reference Index Relative Return vs Total Fund Reference Index Public Fund Sponsor Database (Gross) Annualized Ten ear Risk vs Return 3% 10% 2% 9% Relative Returns 1% 0% (1%) (2%) Returns 8% 7% 6% 5% 4% Total Fund Reference Index Total Fund (3%) 3% (4%) Total Fund 2% Standard Deviation City of Milwaukee Employes Retirement System 11

14 Total Fund Return Analysis Summary Return Analysis The graphs below analyze the manager s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the manager s ranking relative to their style using various risk-adjusted return measures. Performance vs Public Fund Sponsor Database (Gross) 40% 30% 20% 10% 0% (10%) (20%) (30%) (40%) /14-6/ th Percentile (12.58) th Percentile (20.71) Median (25.43) th Percentile (0.29) (27.97) th Percentile (1.58) (30.14) Total Fund (1.05) (30.68) Total Fund Reference Index (25.43) Cumulative and Quarterly Relative Return vs Total Fund Reference Index 6% Relative Returns 4% 2% 0% (2%) (4%) (6%) Total Fund Pub PlnSponsor DB Risk Adjusted Return Measures vs Total Fund Reference Index Rankings Against Public Fund Sponsor Database (Gross) Ten ears Ended June 30, (2) Alpha (85) Treynor Ratio 10th Percentile th Percentile Median th Percentile (0.05) th Percentile (0.69) 4.32 Total Fund (0.39) 4.61 (85) (0.2) (0.4) (0.6) (89) (83) (41) Information Sharpe Excess Return Ratio Ratio Ratio 10th Percentile th Percentile Median th Percentile (0.03) 0.44 (0.12) 90th Percentile (0.33) 0.39 (0.27) Total Fund (0.31) City of Milwaukee Employes Retirement System 12

15 Total Fund Total Fund vs Target Risk Analysis Risk Analysis The graphs below analyze the performance and risk of the fund relative to the appropriate target mix. This relative performance is compared to a peer group of funds wherein each member fund is measured against its own target mix. The first scatter chart illustrates the relationship, called Excess Return Ratio, between excess return and tracking error relative to the target. The second scatter chart displays the relationship, sometimes called Information Ratio, between alpha (market-risk or "beta" adjusted return) and residual risk (non-market or "unsystematic" risk). The third chart shows tracking error patterns over time compared to the range of tracking error patterns for the peer group. The last two charts show the ranking of the fund s risk statistics versus the peer group. Risk Analysis vs Public Fund Sponsor Database Ten ears Ended June 30, Total Fund 0.6 Excess Return 0.10 (0.00 ) (0.10 ) (0.20 ) Alpha (0.30 ) (0.2 ) (0.40 ) (0.4 ) Total Fund (0.50 ) Tracking Error (0.6 ) Residual Risk Rolling 12 Quarter Tracking Error vs Targets Compared to Public Fund Sponsor Database 4.50 Tracking Error Total Fund Group Median Risk Statistics Rankings vs Targets Rankings Against Public Fund Sponsor Database Ten ears Ended June 30, % 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% (0.5%) (1.0%) (15) (85) Excess Alpha Tracking Return Error 10th Percentile th Percentile Median th Percentile (0.08) (0.21) th Percentile (0.35) (0.44) 0.36 Total Fund 0.19 (0.39) 1.98 (36) (0.2) (0.4) (0.6) (18) (14) (38) Rel. Std. Beta Excess Info. Deviation Rtn. Ratio Ratio 10th Percentile th Percentile Median th Percentile (0.05) (0.13) 90th Percentile (0.18) (0.19) Total Fund (0.31) (99) City of Milwaukee Employes Retirement System 13

16 Quarterly Total Fund Relative Attribution - June 30, 2015 The following analysis approaches Total Fund Attribution from the perspective of relative return. Relative return attribution separates and quantifies the sources of total fund excess return relative to its target. This excess return is separated into two relative attribution effects: Asset Allocation Effect and Manager Selection Effect. The Asset Allocation Effect represents the excess return due to the actual total fund asset allocation differing from the target asset allocation. Manager Selection Effect represents the total fund impact of the individual managers excess returns relative to their benchmarks. Asset Class Under or Overweighting Domestic Equity 1.97% Global Equity 7.09% International Equity (8.55%) Fixed Income (2.42%) Private Equity 0.67% Absolute Return 0.23% Real Estate 0.44% Cash 0.57% (15%) (10%) (5%) 0% 5% 10% 15% (1.07%) (1.68%) Actual vs Target Returns 0.54% 0.14% 0.71% 0.71% 2.21% 0.65% 0.29% 0.75% 0.68% 0.68% 0.90% 0.07% 2.50% 3.92% 3.18% 6.38% (4%) (2%) 0% 2% 4% 6% 8% Actual Target Relative Attribution by Asset Class Domestic Equity Global Equity International Equity Fixed Income Private Equity Absolute Return Real Estate Cash Total (0.4%) (0.2%) 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% Manager Effect Asset Allocation Total Relative Attribution Effects for Quarter ended June 30, 2015 Effective Effective Total Actual Target Actual Target Manager Asset Relative Asset Class Weight Weight Return Return Effect Allocation Return Domestic Equity 30% 28% 0.54% 0.14% 0.12% 0.00% 0.12% Global Equity 7% 0% 0.71% 0.71% 0.00% 0.05% 0.05% International Equity 21% 30% 2.21% 0.65% 0.33% (0.05%) 0.29% Fixed Income 26% 28% (1.07%) (1.68%) 0.16% 0.04% 0.20% Private Equity 3% 2% 6.38% 2.50% 0.10% 0.02% 0.12% Absolute Return 5% 5% 0.29% 0.75% (0.02%) 0.00% (0.02%) Real Estate 7% 7% 3.92% 3.18% 0.06% 0.01% 0.07% Cash 1% 0% 0.68% 0.68% 0.00% 0.00% 0.00% Total 0.90% = 0.07% % % 0.83% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 14

17 Cumulative Total Fund Relative Attribution - June 30, 2015 The charts below accumulate the Total Fund Attribution Analysis (shown earlier) over multiple periods to examine the cumulative sources of excess total fund performance relative to target. These cumulative results quantify the longer-term sources of total fund excess return relative to target by asset class. These relative attribution effects separate the cumulative sources of total fund excess return into Asset Allocation Effect and Manager Selection Effect. One ear Relative Attribution Effects Domestic Equity Global Equity International Equity Fixed Income Private Equity Absolute Return Real Estate Cash Total (1.5%) (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% Manager Effect Asset Allocation Total Cumulative Relative Attribution Effects 0.8% 0.6% 0.4% 0.2% 0.0% (0.2%) (0.4%) (0.6%) (0.8%) (1.0%) (1.2%) Manager Effect Asset Allocation Total One ear Relative Attribution Effects Effective Effective Total Actual Target Actual Target Manager Asset Relative Asset Class Weight Weight Return Return Effect Allocation Return Domestic Equity 30% 30% 7.63% 7.61% 0.01% (0.10%) (0.09%) Global Equity 9% 0% (0.97%) (0.97%) 0.00% (0.34%) (0.34%) International Equity 22% 31% (2.34%) (4.44%) 0.48% 0.69% 1.17% Fixed Income 26% 28% (1.61%) 1.86% (0.92%) 0.01% (0.91%) Private Equity 2% 1% 11.11% 13.83% 0.01% 0.11% 0.11% Absolute Return 4% 2% 6.85% 4.93% 0.10% 0.07% 0.17% Real Estate 7% 7% 13.56% 12.11% 0.10% 0.02% 0.12% Cash 0% 0% 0.29% 0.29% 0.00% (0.01%) (0.01%) Total 2.59% = 2.38% + (0.24%) % 0.21% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 15

18 Investment Manager Returns and Peer Group Rankings The table below details the rates of return and peer group rankings for the Fund s investment managers over various time periods ended June 30, Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. Returns and Rankings for Periods Ended June 30, 2015 Last Last Last Last 3 5 Since Quarter ear ears ears Inception Total Domestic Equity 0.54% 7.63% 17.71% 16.79% 6.55% (7/98) Russell 3000 Index 0.14% 7.29% 17.73% 17.54% 6.00% (7/98) Northern Trust Global 0.35% % % % % (8/88) S&P 500 Index 0.28% % % % % (8/88) CAI Large Cap Core Style 0.42% 8.00% 18.21% 17.89% - BlackRock R1000 Alpha Tilts (0.22%) % % % % (5/02) Russell 1000 Index 0.11% % % % % (5/02) CAI Large Cap Core Style 0.42% 8.00% 18.21% 17.89% - Cornerstone Investment Partners (1.64%) 100 (2.89%) % % (6/12) S&P 500 Index 0.28% % % % % (6/12) CAI Large Cap Value Style 0.52% 5.23% 18.26% 17.08% - Polen Capital Management 2.41% % % % (7/12) S&P 500 Index 0.28% % % % % (7/12) CAI Lrg Cap Growth Style 0.70% 11.86% 18.87% 18.54% - Earnest Partners LLC 0.27% % % % % (5/05) Russell MidCap Index (1.54%) % % % % (5/05) CAI Mid Cap Style (0.47%) 7.82% 19.23% 18.42% - Dimensional Fund Advisors Inc. 0.05% % % % % (11/96) Russell 2000 Value Index (1.20%) % % % % (11/96) CAI Small Cap Value Style 0.45% 4.44% 18.61% 17.48% - CastleArk Management 3.58% % % (9/13) Russell 2000 Growth Index 1.98% % % % % (9/13) CAI Sm Cap Growth Style 2.30% 11.25% 19.92% 19.56% - Total Global Equity 0.71% (0.97%) 13.01% 11.34% 7.71% (4/10) MSCI World Index 0.31% 1.43% 14.27% 13.10% 9.57% (4/10) BlackRock ACWI Value 0.27% % (9/14) MSCI ACWI Value 0.26% 79 (3.41%) % % 96 (3.99%)(9/14) CAI Global Eq Broad Style 1.15% 3.60% 15.39% 13.79% - MFS Investment Management 0.88% % % (12/12) MSCI ACWI Idx 0.52% % % % % (12/12) CAI Global Eq Broad Style 1.15% 3.60% 15.39% 13.79% - City of Milwaukee Employes Retirement System 16

19 Investment Manager Returns and Peer Group Rankings The table below details the rates of return and peer group rankings for the Fund s investment managers over various time periods ended June 30, Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. Returns and Rankings for Periods Ended June 30, 2015 Last Last Last Last 3 5 Since Quarter ear ears ears Inception Total International Equity 2.21% (2.34%) 14.00% 11.17% 7.54% (5/96) MSCI EAFE Index 0.62% (4.22%) 11.97% 9.54% 4.65% (5/96) BlackRock ACWI 0.90% 68 (3.05%) % (1/14) MSCI ACWI ex US Growth 0.74% 72 (1.70%) % % % (1/14) CAI Non-U.S. Eq. Style 1.55% (1.66%) 12.62% 10.47% - Brandes Investment Partners 2.89% 15 (2.99%) % % % (2/98) MSCI EAFE Index 0.62% 77 (4.22%) % % % (2/98) CAI Non-U.S. Eq. Style 1.55% (1.66%) 12.62% 10.47% - William Blair & Company 0.65% % % % % (12/03) MSCI ACWI ex-us Index 0.72% 72 (4.85%) % % % (12/03) CAI Non-U.S. Eq. Style 1.55% (1.66%) 12.62% 10.47% - Dimensional Fund Advisors Inc. 5.19% 26 (3.27%) % % % (5/06) Blended Benchmark 4.34% 56 (0.77%) % % % (5/06) CAI Int l Small Cap Style 4.61% 0.38% 17.42% 14.21% - Total Fixed Income (1.07%) (1.61%) 2.36% 4.63% 7.99% (12/87) Barclays Capital Aggregate (1.68%) 1.86% 1.83% 3.35% 6.73% (12/87) BlackRock Intermediate Agg (0.65%) % % % % (7/99) Barclays Capital Int Aggregate (0.67%) % % % % (7/99) CAI Intermediate F-I Styl (0.61%) 1.70% 1.96% 3.09% - Reams Asset Management (0.98%) % % % % (1/01) Barclays Capital Aggregate (1.68%) % % % % (1/01) CAI FI Core Plus Style (1.51%) 1.92% 3.23% 4.97% - Loomis, Sayles & Company, L.P. (1.15%) 15 (2.18%) % % % (12/87) Barclays Capital Aggregate (1.68%) % % % % (12/87) CAI FI Core Plus Style (1.51%) 1.92% 3.23% 4.97% - Wellington Management Company (1.54%) 62 (8.66%) 94 (2.53%) % (1/11) CG WGBI Index (1.55%) 62 (9.02%) 98 (2.45%) % 97 (0.19%) (1/11) CAI Global Fixed-Inc DB (1.10%) (2.55%) 3.16% 4.30% - Total Private Equity 6.38% 11.11% 10.57% 6.99% 5.66% (6/10) Abbott Capital Management % 11.08% 7.84% (19.14%) (18.90%) (6/10) Abbott Capital Management % 8.49% 4.64% - (16.90%) (6/11) Abbott Capital Management % 3.39% (2.00%) - (2.00%) (7/12) Abbott Capital Management % 0.90% - - (3.31%) (5/13) Abbott Capital Management 2014 (2.76%) (6.68%) - - (13.22%) (4/14) Mesirow V 10.50% 16.40% 16.08% 13.28% 11.71% (6/10) Mesirow VI (2.69%) (7.29%) - - (0.31%) (7/13) NB Secondary Opp Fund III 15.66% 27.54% % (12/13) Russell 3000 (On a Qtr Lag) + 3% 2.55% 15.68% 19.83% 18.08% 18.08% (9/10) Absolute Return 0.29% 6.85% % (6/14) Allianz SA % 12.31% % (6/14) Newton (2.10%) % (8/14) UBS A & Q 0.66% % (12/14) Total Real Estate 3.92% 13.56% 13.00% 13.79% 6.28% (7/86) Real Estate 3.92% % % % % (7/86) NCREIF Property (1 Quarter in Arrears) 3.57% % % % % (9/86) Open-End Real Estate 3.20% 13.33% 11.07% 13.39% - Total Fund 0.90% 2.59% 11.80% 11.48% 9.74% (1/79) Total Fund Reference Index* 0.07% 2.38% 10.94% 11.01% - * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 17

20 Investment Manager Returns and Peer Group Rankings The table below details the rates of return and peer group rankings for the Fund s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. 12/2014-6/ Total Domestic Equity 1.90% 11.63% 33.86% 16.12% (2.48%) Russell 3000 Index 1.94% 12.56% 33.55% 16.42% 1.03% Northern Trust Global 1.31% % % % % 35 S&P 500 Index 1.23% % % % % 36 CAI Large Cap Core Style 1.82% 13.66% 34.34% 15.89% 1.46% BlackRock R1000 Alpha Tilts 3.00% % % % % 25 Russell 1000 Index 1.71% % % % % 49 CAI Large Cap Core Style 1.82% 13.66% 34.34% 15.89% 1.46% Cornerstone Investment Partners (6.94%) % % S&P 500 Index 1.23% % % % % 32 CAI Large Cap Value Style 0.86% 12.54% 34.59% 16.78% 0.61% Polen Capital Management 6.19% % % S&P 500 Index 1.23% % % % % 25 CAI Lrg Cap Growth Style 4.57% 11.83% 35.60% 16.14% (0.28%) Earnest Partners LLC 4.15% % % % 47 (0.31%) 32 Russell MidCap Index 2.35% % % % 41 (1.55%) 46 CAI Mid Cap Style 4.73% 9.88% 35.84% 16.26% (1.92%) Dimensional Fund Advisors Inc. 2.64% % % % 20 (6.75%) 78 Russell 2000 Value Index 0.76% % % % 50 (5.50%) 65 CAI Small Cap Value Style 3.09% 5.93% 38.72% 18.12% (3.70%) CastleArk Management 7.34% % Russell 2000 Growth Index 8.74% % % % 50 (2.91%) 61 CAI Sm Cap Growth Style 8.37% 3.41% 46.83% 14.56% (1.34%) Total Global Equity 2.64% 2.32% 24.81% 15.39% (8.95%) MSCI The World Index 2.63% 4.94% 26.68% 15.83% (5.54%) BlackRock ACWI Value 1.28% MSCI ACWI Value 0.45% % % % 74 (7.35%) 52 CAI Global Eq Broad Style 4.24% 4.53% 28.49% 17.88% (6.97%) MFS Investment Management 3.17% % % MSCI ACWI Idx 2.97% % % % 61 (6.86%) 48 CAI Global Eq Broad Style 4.24% 4.53% 28.49% 17.88% (6.97%) City of Milwaukee Employes Retirement System 18

21 Investment Manager Returns and Peer Group Rankings The table below details the rates of return and peer group rankings for the Fund s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. 12/2014-6/ Total International Equity 7.56% (3.63%) 26.26% 18.88% (11.84%) MSCI EAFE Index 5.52% (4.90%) 22.78% 17.32% (12.14%) BlackRock ACWI 5.17% 79 (3.34%) MSCI ACWI ex US Growth 5.67% 73 (2.29%) % % 72 (13.93%) 73 CAI Non-U.S. Eq. Style 6.63% (4.12%) 23.32% 18.99% (11.40%) Brandes Investment Partners 9.26% 9 (4.45%) % % 96 (10.13%) 31 MSCI EAFE Index 5.52% 75 (4.90%) % % 69 (12.14%) 57 CAI Non-U.S. Eq. Style 6.63% (4.12%) 23.32% 18.99% (11.40%) William Blair & Company 5.61% 74 (1.77%) % % 9 (11.78%) 54 MSCI ACWI ex-us Index 4.35% 84 (3.44%) % % 69 (13.33%) 68 CAI Non-U.S. Eq. Style 6.63% (4.12%) 23.32% 18.99% (11.40%) Dimensional Fund Advisors Inc % 60 (4.99%) % % 65 (16.88%) 83 Blended Benchmark 10.15% 59 (4.95%) % % 79 (15.94%) 73 CAI Int l Small Cap Style 10.78% (3.94%) 31.08% 23.62% (13.73%) Total Fixed Income (0.67%) 4.00% (0.53%) 8.82% 7.36% Barclays Capital Aggregate (0.10%) 5.97% (2.02%) 4.21% 7.84% BlackRock Intermediate Agg 0.71% % 9 (0.93%) % % 32 Barclays Capital Int Aggregate 0.64% % 13 (1.02%) % % 42 CAI Intermediate F-I Styl 0.79% 3.42% (0.49%) 4.89% 5.87% Reams Asset Management 0.41% % 97 (1.08%) % % 52 Barclays Capital Aggregate (0.10%) % 60 (2.02%) % % 39 CAI FI Core Plus Style 0.37% 6.16% (0.71%) 8.29% 7.63% Loomis, Sayles & Company, L.P. (0.67%) % % % % 70 Barclays Capital Aggregate (0.10%) % 60 (2.02%) % % 39 CAI FI Core Plus Style 0.37% 6.16% (0.71%) 8.29% 7.63% Wellington Management Company (3.77%) 93 (0.55%) 89 (5.38%) % % 15 CG WGBI Index (4.02%) 95 (0.48%) 88 (4.00%) % % 41 CAI Global Fixed-Inc DB (0.38%) 3.11% (0.71%) 8.47% 5.47% Total Private Equity 6.90% 15.40% 8.66% 3.44% (3.21%) Abbott Capital Management % 12.36% 7.33% (1.66%) (38.92%) Abbott Capital Management % 9.17% 1.20% (5.63%) - Abbott Capital Management % 4.97% (2.50%) - - Abbott Capital Management % (2.17%) Abbott Capital Management 2014 (2.76%) Mesirow V 10.50% 21.07% 14.22% 6.65% 5.05% Mesirow VI (2.69%) 2.22% NB Secondary Opp Fund III 26.04% 19.77% Russell 3000 (On a Qtr Lag) + 3% 8.69% 21.19% 25.11% 33.90% 3.61% Absolute Return 3.35% Allianz SA % Newton 0.92% UBS A & Q 3.13% Total Real Estate 6.81% 13.87% 13.58% 9.22% 18.46% Real Estate 6.81% % % % % 12 NCREIF Property (1 Quarter in Arrears) 6.72% % % % % 31 Open-End Real Estate 6.79% 11.99% 13.06% 10.80% 15.33% Total Fund 3.02% 5.31% 19.59% 14.10% (1.05%) Total Fund Reference Index* 2.72% 5.16% 18.14% 12.90% 0.79% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 19

22 Investment Manager Returns The table below details the rates of return for the Fund s investment managers over various time periods ended June 30, Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. Net of Fee Returns Returns for Periods Ended June 30, 2015 Last Last Last Last 3 5 Since Quarter ear ears ears Inception Total Domestic Equity 0.46% 7.29% 17.35% 16.44% 6.21% (7/98) Russell 3000 Index 0.14% 7.29% 17.73% 17.54% 6.00% (7/98) Northern Trust Global 0.35% 7.54% 17.38% 17.39% 9.34% (9/94) S&P 500 Index 0.28% 7.42% 17.31% 17.34% 9.37% (9/94) BlackRock R1000 Alpha Tilts (0.28%) 9.70% 18.34% 19.23% 7.72% (5/02) Russell 1000 Index 0.11% 7.37% 17.73% 17.58% 7.56% (5/02) Cornerstone Investment Partners (1.74%) (3.28%) 13.49% % (6/12) S&P 500 Index 0.28% 7.42% 17.31% 17.34% 18.34% (6/12) Polen Capital Management 2.28% 18.41% 16.58% % (7/12) S&P 500 Index 0.28% 7.42% 17.31% 17.34% 17.31% (7/12) Earnest Partners LLC 0.14% 5.99% 17.47% 16.72% 9.36% (5/05) Russell MidCap Index (1.54%) 6.63% 19.26% 18.23% 10.03% (5/05) Dimensional Fund Advisors Inc. (0.08%) 2.95% 19.53% 18.03% 12.21% (11/96) Russell 2000 Value Index (1.20%) 0.78% 15.50% 14.81% 9.81% (11/96) CastleArk Management 3.41% 10.90% % (9/13) Russell 2000 Growth Index 1.98% 12.34% 20.11% 19.33% 16.76% (9/13) Total Global Equity 0.62% (1.33%) 12.60% 10.85% 7.23% (4/10) MSCI World Index 0.31% 1.43% 14.27% 13.10% 9.57% (4/10) BlackRock ACWI Value 0.25% % (9/14) MSCI ACWI Value 0.26% (3.41%) 11.80% 10.57% (3.99%) (9/14) MFS Investment Management 0.78% 2.83% % (12/12) MSCI ACWI Idx 0.52% 1.23% 13.61% 12.52% 12.69% (12/12) Total International Equity 2.08% (2.81%) 13.41% 10.52% 6.72% (5/96) MSCI EAFE Index 0.62% (4.22%) 11.97% 9.54% 4.65% (5/96) BlackRock ACWI 0.88% (3.11%) % (1/14) MSCI ACWI ex US Growth 0.74% (1.70%) 10.54% 8.84% 2.16% (1/14) Brandes Investment Partners 2.79% (3.38%) 13.83% 9.63% 8.20% (2/98) MSCI EAFE Index 0.62% (4.22%) 11.97% 9.54% 4.74% (2/98) William Blair & Company 0.55% (0.33%) 12.56% 11.25% 8.00% (12/03) MSCI ACWI ex-us Index 0.72% (4.85%) 9.92% 8.23% 7.65% (12/03) Dimensional Fund Advisors Inc. 5.19% (3.27%) 17.67% 12.62% 4.53% (5/06) Blended Benchmark 4.34% (0.77%) 15.69% 12.21% 2.28% (5/06) Total Fixed Income (1.10%) (1.75%) 2.21% 4.47% 7.08% (9/94) Barclays Capital Aggregate (1.68%) 1.86% 1.83% 3.35% 5.89% (9/94) BlackRock Intermediate Agg (0.66%) 2.01% 1.86% 3.01% 5.15% (7/99) Barclays Capital Int Aggregate (0.67%) 1.89% 1.74% 2.89% 5.07% (7/99) Reams Asset Management (1.02%) 1.55% 2.07% 3.98% 5.80% (1/01) Loomis, Sayles & Company, L.P. (1.18%) (2.29%) 4.98% 7.33% 8.72% (9/94) Barclays Capital Aggregate (1.68%) 1.86% 1.83% 3.35% 5.89% (9/94) Wellington Management Company (1.60%) (8.88%) (2.77%) % (1/11) CG WGBI Index (1.55%) (9.02%) (2.45%) 1.05% (0.19%) (1/11) Total Private Equity 6.38% 11.11% 10.57% 6.99% 5.66% (6/10) Abbott Capital Management % 11.08% 7.84% (19.14%) (18.90%) (6/10) Abbott Capital Management % 8.49% 4.64% - (16.90%) (6/11) Abbott Capital Management % 3.39% (2.00%) - (2.00%) (7/12) Abbott Capital Management % 0.90% - - (3.31%) (5/13) Abbott Capital Management 2014 (2.76%) (6.68%) - - (13.22%) (4/14) Mesirow V 10.50% 16.40% 16.08% 13.28% 11.71% (6/10) Mesirow IV (2.69%) (7.29%) - - (0.31%) (7/13) NB Secondary Opp Fund III 15.66% 27.54% % (12/13) Russell 3000 (On a Qtr Lag) + 3% 2.55% 15.68% 19.83% 18.08% 18.08% (9/10) Absolute Return 0.29% 6.85% % (6/14) Allianz SA % 12.31% % (6/14) Newton (2.10%) % (8/14) UBS A & Q 0.66% % (12/14) Total Real Estate 3.85% 13.25% 12.63% 13.38% 5.04% (7/86) Real Estate 3.85% 13.25% 12.63% 13.38% 5.04% (7/86) NCREIF Property(1Quarter in Arrears) 3.57% 12.72% 11.47% 12.75% 7.78% (9/86) Total Fund 0.83% 2.31% 11.49% 11.16% 9.36% (1/79) Total Fund Reference Index* 0.07% 2.38% 10.94% 11.01% - * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 20

23 Investment Manager Returns The table below details the rates of return for the Fund s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund s accounts for that asset class. Net of Fee Returns 12/2014-6/ Total Domestic Equity 1.74% 11.28% 33.44% 15.82% (2.77%) Russell 3000 Index 1.94% 12.56% 33.55% 16.42% 1.03% Northern Trust Global 1.30% 13.75% 32.43% 16.04% 2.19% S&P 500 Index 1.23% 13.69% 32.39% 16.00% 2.11% BlackRock R1000 Alpha Tilts 2.88% 13.83% 32.90% 19.74% 4.34% Russell 1000 Index 1.71% 13.24% 33.11% 16.42% 1.50% Cornerstone Investment Partners (7.13%) 7.89% 34.35% - - S&P 500 Index 1.23% 13.69% 32.39% 16.00% 2.11% Polen Capital Management 5.93% 17.02% 22.84% - - S&P 500 Index 1.23% 13.69% 32.39% 16.00% 2.11% Earnest Partners LLC 3.87% 9.79% 30.60% 15.87% (0.87%) Russell MidCap Index 2.35% 13.22% 34.76% 17.28% (1.55%) Dimensional Fund Advisors Inc. 2.36% 4.47% 41.95% 21.77% (7.26%) Russell 2000 Value Index 0.76% 4.22% 34.52% 18.05% (5.50%) CastleArk Management 6.99% 5.45% Russell 2000 Growth Index 8.74% 5.60% 43.30% 14.59% (2.91%) Total Global Equity 2.46% 1.95% 24.37% 14.88% (9.33%) MSCI The World Index 2.63% 4.94% 26.68% 15.83% (5.54%) BlackRock ACWI Value 1.24% MSCI ACWI Value 0.45% 2.86% 22.43% 15.55% (7.35%) MFS Investment Management 2.97% 5.17% 22.47% - - MSCI ACWI 2.97% 4.71% 23.44% 16.80% (6.86%) Total International Equity 7.31% (4.09%) 25.66% 18.32% (12.24%) MSCI EAFE Index 5.52% (4.90%) 22.78% 17.32% (12.14%) BlackRock ACWI 5.14% (3.40%) Russell 2000 Growth Index 8.74% 5.60% 43.30% 14.59% (2.91%) Brandes Investment Partners 9.04% (4.84%) 28.93% 11.51% (10.51%) MSCI EAFE Index 5.52% (4.90%) 22.78% 17.32% (12.14%) William Blair & Company 5.40% (2.17%) 21.36% 23.38% (12.15%) MSCI ACWI ex-us Index 4.35% (3.44%) 15.78% 17.39% (13.33%) Dimensional Fund Advisors Inc % (4.99%) 32.39% 22.26% (17.46%) Blended Benchmark 10.15% (4.95%) 29.30% 20.00% (15.94%) Total Fixed Income (0.74%) 3.85% (0.69%) 8.65% 7.20% Barclays Capital Aggregate (0.10%) 5.97% (2.02%) 4.21% 7.84% BlackRock Intermediate Agg 0.69% 4.34% (0.96%) 3.65% 6.08% Barclays Capital Int Aggregate 0.64% 4.12% (1.02%) 3.56% 5.97% Reams Asset Management 0.33% 3.94% (1.23%) 7.78% 7.41% Loomis, Sayles & Company, L.P. (0.73%) 5.82% 2.29% 15.33% 6.83% Barclays Capital Aggregate (0.10%) 5.97% (2.02%) 4.21% 7.84% Wellington Management Company (3.88%) (0.78%) (5.61%) 2.93% 8.58% CG WGBI Index (4.02%) (0.48%) (4.00%) 1.65% 6.35% Total Private Equity 6.90% 15.40% 8.66% 3.44% (3.21%) Abbott Capital Management % 12.36% 7.33% (1.66%) (38.92%) Abbott Capital Management % 9.17% 1.20% (5.63%) - Abbott Capital Management % 4.97% (2.50%) - - Abbott Capital Management % (2.17%) Abbott Capital Management 2014 (2.76%) Mesirow V 10.50% 21.07% 14.22% 6.65% 5.05% Mesirow VI (2.69%) 2.22% NB Secondary Opp Fund III 26.04% 19.77% Russell 3000 (On a Qtr Lag) + 3% 8.69% 21.19% 25.11% 33.90% 3.61% Absolute Return 3.35% Allianz SA % Newton 0.92% UBS A & Q 3.13% Total Real Estate 6.67% 13.54% 13.15% 8.83% 18.17% Real Estate 6.67% 13.54% 13.15% 8.83% 18.17% NCREIF Property(1Quarter in Arrears) 6.72% 11.26% 10.99% 11.00% 16.10% Total Fund 2.88% 5.02% 19.26% 13.78% (1.38%) Total Fund Reference Index* 2.72% 5.16% 18.14% 12.90% 0.79% * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 21

24 Asset Class Rankings The charts below show the rankings of each asset class component of the Total Fund relative to appropriate comparative databases. In the upper right corner of each graph is the weighted average of the rankings across the different asset classes. The weights of the fund s actual asset allocation are used to make this calculation. The weighted average ranking can be viewed as a measure of the fund s overall success in picking managers and structuring asset classes. Total Asset Class Performance One ear Ended June 30, % Weighted Ranking 55 Returns 15% 10% 5% 0% (5%) (52) (38) (90) (78) (27) (38) (98) (76) (1) (1) (10%) Pub Pln- CAI Global Eq Broad Pub Pln- Intl Pub Pln- Pub Pln- Real Public Fund Dom Equity Style Equity Dom Fixed Estate - Cash 10th Percentile (0.42) th Percentile (2.27) Median (3.66) th Percentile (4.32) th Percentile 5.21 (1.14) (5.27) Asset Class Composite 7.63 (0.97) (2.34) (1.61) Composite Benchmark (4.44) Total Asset Class Performance Four and One-Half ears Ended June 30, % 16% Weighted Ranking 54 14% 12% (44) (83) (5) (4) Returns 10% 8% 6% 4% 2% (92) (6) (37) (76) (58) 0% Pub Pln- CAI Global Eq Broad Pub Pln- Intl Pub Pln- Public Fund Dom Equity Style Equity Dom Fixed - Cash 10th Percentile th Percentile Median th Percentile th Percentile Asset Class Composite Composite Benchmark * Current Quarter Target = 28.0% Russell 3000 Index, 28.0% Barclays Aggregate Index, 20.0% MSCI EAFE Index, 10.0% MSCI ACWI ex US Index, 7.0% NFI-ODCE (1 Qtr in Arrears), 5.0% 3-month Treasury Bill+3.0% and 2.0% Russell 3000 (1 Qtr in Arrears)+3.0%. City of Milwaukee Employes Retirement System 22

25 Callan Research/Education Callan Research/Education

26 ΧΑΛΛΑΝ ΙΝςΕΣΤΜΕΝΤΣ ΙΝΣΤΙΤΥΤΕ 2νδ Θυαρτερ 2015 Εδυχατιον Ρεσεαρχη ανδ Εδυχατιοναλ Προγραmσ Τηε Χαλλαν Ινϖεστmεντσ Ινστιτυτε προϖιδεσ ρεσεαρχη τηατ κεεπσ χλιεντσ υπδατεδ ον τηε λατεστ ινδυστρψ τρενδσ ωηιλε ηελπινγ τηεm λεαρν τηρουγη χαρεφυλλψ στρυχτυρεδ εδυχατιοναλ προγραmσ. Ρεχεντ Ρεσεαρχη Πλεασε ϖισιτ ωωω.χαλλαν.χοm/ρεσεαρχη το σεε αλλ οφ ουρ πυβλιχατιονσ. Stuck in the Mud or Road to Success? Στυχκ ιν τηε Μυδ ορ Ροαδ το Συχχεσσ? DΧ Οβσερϖερ, 1στ Θυαρτερ 2015 Χοϖερ στορψ: Ισ Ψουρ Ταργετ Dατε DΧ Πλανσ ανδ Φεε Λαωσυιτσ Τηισ χηαρτιχλε Fund Suitable? Plus the Callan DC Index. Nearly (k) fee lawsuits have been iled since The irst generation of lawsuits focused on revenue-sharing violations, failure to understand speciic costs, and use of retail mutual funds in 401(k) lineups. Over time these lawsuits have expanded in scope, covering everything from the prudence of offering certain stable value funds to adherence to investment policy statements. In addition to monetary payments, settlements have typically included requirements to: Competitively bid plan recordkeeping services Engage an outside consultant Utilize institutional or retirement-share classes where possible Add passively managed funds to the lineup Comply with the Department of Labor s participant disclosure regulation In this charticle, Callan describes select DC fee lawsuits. We suggest best practices to help plan sponsors keep their plan on the path to success. ΛΑWΣΥΙΤ ΣΠΟΤΛΙΓΗΤ DΧ Πλανσ ανδ Φεε Λαωσυιτσ The message is clear for deined contribution (DC) plan sponsors: follow best practices established for plan fees or risk getting stuck in a costly and time-consuming lawsuit. Τιββλε ϖ. Εδισον In May 2015, the U.S. Supreme Court reversed the Ninth Circuit Court of Appeals ruling that the 401(k) fee lawsuit of Tibble v. Edison International was time-barred, remanding the case back to the Ninth Circuit Court of Appeals. The case dates back to 2007, when participants in the Edison 401(k) Savings Plan sued plan iduciaries for losses suffered due to breach of iduciary duty relating to mutual funds in the plan s lineup. Plaintiffs argued that Edison iduciaries imprudently offered higher-priced retail-class mutual funds when materially identical, lower-priced institutional-class mutual funds were available. However, the defendants argued that ERISA requires a breach of iduciary duty complaint to be iled within six years, and the breach occurred when the funds in question had been initially added to the plan, which was more than six years before the complaint was iled. The District Court agreed that the complaint was untimely and the Ninth Circuit afirmed. The Supreme Court s decision focused on the failure by the Ninth Circuit to consider iduciaries ongoing obligation to monitor and remove imprudent investments. Fiduciaries must prudently select funds AND prudently revisit fund selection on an ongoing basis. For this reason, the Supreme Court remanded the case back to the Ninth Circuit to determine if a prudent review process had been in place. The Supreme Court expressed no view on the scope of respondents iduciary duty, leaving it to the Ninth Circuit to make this determination. Ψεαρσ Λοστ Μυδδψ Wατερσ Recent fee lawsuits that reached settlement δεσχριβεσ σελεχτ φεε λαωσυιτσ ανδ βεστ πραχ τιχεσ το ηελπ πλαν σπονσορσ σταψ ον τηε πατη Μαρκετ Πυλσε Φλιπβοοκ, 1στ Θυαρτερ 2015 Α ρεφερενχε γυιδε χοϖ το συχχεσσ. ερινγ ινϖεστmεντ ανδ φυνδ σπονσορ τρενδσ ιν τηε Υ.Σ. εχονοmψ, Amount of Settlement ($mm) vs. Duration of Lawsuit (years) $150 Settlement ($mm) $120 $30 DΧ πλαν σπονσορσ τηατ ρεδυχεδ πλαν φεεσ αφτερ ρεϖιεωινγ τηεm $20 Median = $15 Million $10 Τηε mινιmυm νυmβερ οφ ψεαρσ τακεν το σεττλε α φεε λαωσυιτ $ ears Αmουντ οφ λαργεστ φεε λαωσυιτ σεττλεmεντ το δατε U.S. and non-u.s. equities and ixed income, and alternatives. ΜΙΛΛΙΟΝ Νο Ονε ισ Ιmmυνε: Λαωσυιτσ βψ Ινδυστρψ DC plan fee lawsuits have popped up across a diverse array of industries, as illustrated in this chart. Grocery 4.2% Τακε αχτιον νοω. Retail 4.2% Dον τ γετ βογγεδ δοων. Φεε Λαωσυιτσ = Τιmε + Μονεψ Robotics 4.2% Paper 4.2% Aerospace 25.0% Πατη το Συχχεσσ = Βενχηmαρκινγ + Ρεγυλαρ Dοχυmεντατιον Utility 4.2% I.T. 4.2% Healthcare 4.2% Finance 16.7% Sources: 401(k) Fee Cases, Groom Law Group, Chartered. January 27, 2015; Callan 2015 DC Trends Survey Energy 4.2% Ινσιδε Χαλλαν σ Dαταβασε, 1στ Θυαρτερ 2015 Τηισ ρεπορτ γραπησ Education 4.2% Construction 12.5% Automotive 8.3% περφορmανχε ανδ ρισκ δατα φροm Χαλλαν σ προπριεταρψ δαταβασε Αχτιϖε Σηαρε ανδ Προδυχτ Παιρσ Αναλψσισ Ιν τηισ παπερ, αυτηορ αλονγσιδε ρελεϖαντ mαρκετ ινδιχεσ. Γρεγ Αλλεν ισολατεσ τηε ιmπαχτ οφ αχτιϖε σηαρε ον περφορmανχε βψ φοχυσινγ ον προδυχτ παιρσ. Ρεαλ Εστατε Ινδιχατορσ: Τοο Ηοτ το Τουχη ορ Χοολ Ενουγη το Ηανδλε? Σεε σεϖεν ινδιχατορσ τηατ ηαϖε ηελπεδ σιγναλ ωηεν τηε Υ.Σ. Εθυιτψ Βενχηmαρκ Ρεϖιεω, Ψεαρ Ενδ 2014 Τηισ δεταιλεδ ινστιτυτιοναλ ρεαλ εστατε mαρκετ ισ οϖερηεατεδ ορ χοολεδ. ρεπορτ χοmπαρεσ ΧΡΣΠ, Ρυσσελλ, ανδ Σ&Π ινδιχεσ αλονγσιδε Χαλ λαν Αχτιϖε Μαναγερ Στψλε Γρουπσ. Τηε Γαmε οφ Ρετιρεmεντ Ηελπινγ Εmπλοψεεσ Wιν Τηισ χηαρ τιχλε προϖιδεσ α ηιγη λεϖελ λοοκ ατ τηε τηρεε γενερατιονσ DΧ πλαν Χαπιταλ Μαρκετ Ρεϖιεω, 1στ Θυαρτερ 2015 Α νεωσλεττερ προϖιδινγ σπονσορσ mυστ ταργετ ανδ ηοω βεστ το χοmmυνιχατε ωιτη τηεm. ινσιγητσ ον τηε εχονοmψ ανδ ρεχεντ περφορmανχε ιν τηε εθυιτψ, ixed income, alternatives, and real estate markets. Τηε Ινϖεστmεντ ςεηιχλε Οωνερ σ Μανυαλ Τηισ χηαρτιχλε ηιγη λιγητσ τηε κεψ φεατυρεσ οφ σεϖεραλ ποπυλαρ ινϖεστmεντ ϖεηιχλεσ. Ιτ Ηεδγε Φυνδ Μονιτορ, 1στ Θυαρτερ 2015 Χοϖερ στορψ: Βριδγινγ also encourages investors to consider six important questions τηε Γαπ: Μυλτι Ασσετ Χλασσ Στρατεγιεσ. ωηεν mακινγ αν ινϖεστmεντ ϖεηιχλε σελεχτιον. Πριϖατε Μαρκετσ Τρενδσ, Σπρινγ 2015 Α θυαρτερλψ νεωσλεττερ τηατ ΧΑΛΛΑΝ ΙΝςΕΣΤΜΕΝΤΣ ΙΝΣΤΙΤΥΤΕ Survey δισχυσσεσ τηε mαρκετ ενϖιρονmεντ, ρεχεντ εϖεντσ, περφορmανχε, ανδ οτηερ ισσυεσ ινϖολϖινγ πριϖατε εθυιτψ Deined Contribution Survey Χαλλαν σ αννυαλ συρϖεψ οφ DΧ πλαν σπονσορσ ρεϖεαλσ 2015 Deined Contribution Trends τρενδσ ιν πλαν στρυχτυρε ανδ mαναγεmεντ.

27 ΧΑΛΛΑΝ ΙΝςΕΣΤΜΕΝΤΣ ΙΝΣΤΙΤΥΤΕ 2015 Ρεγιοναλ Wορκσηοπσ ϑυνε 17 Χηιχαγο, ΙΛ ϑυνε 18 Σαν Φρανχισχο, ΧΑ Ροδ Βαρε Χηιχαγο Φυνδ Σπονσορ Χονσυλτινγ Υϖαν Τσενγ, ΧΦΑ Σαν Φρανχισχο Φυνδ Σπονσορ Χονσυλτινγ Λορι Λυχασ, ΧΦΑ Dεφινεδ Χοντριβυτιον Χονσυλτινγ Εϖεντσ Dιδ ψου mισσ ουτ ον α Χαλλαν χονφερενχε ορ ωορκσηοπ? Εϖεντ συm mαριεσ ανδ σπεακερσ πρεσεντατιονσ αρε αϖαιλαβλε ον ουρ ωεβσιτε: ηττπσ://ωωω.χαλλαν.χοm/εδυχατιον/χιι/ Τηε ϑυνε Ρεγιοναλ Wορκσηοπ σ τοπιχ ωασ Φιδυχιαρψ Τιδαλ Wαϖε Ναϖιγατινγ DΧ σ Υνχηαρτεδ Wατερσ Φιδυχιαρψ Τιδαλ Wαϖε: Ναϖιγατινγ DΧ σ Υν χηαρτεδ Wατερσ. Ουρ σπεακερσ ωερε Ροδ Βαρε, Χηιχαγο Φυνδ Σπονσορ Χονσυλτινγ; Lori Lucas, CFA, Deined Contribution Con συλτινγ; ανδ Υϖαν Τσενγ, ΧΦΑ, Σαν Φρανχισχο Φυνδ Σπονσορ Χονσυλτινγ. Our next event is the Οχτοβερ Ρεγιοναλ Wορκσηοπ, το βε ηελδ Οχτοβερ 21 ιν Νεω Ψορκ ανδ Οχτοβερ 22 ιν Ατλαντα. Σταψ τυνεδ φορ τοπιχ ανδ σπεακερ δεταιλσ! Αλσο, σαϖε τηε δατε φορ ουρ αννυαλ Νατιοναλ Χονφερενχε in San Francisco, January 25-27, Τηε Χεντερ φορ Ινϖεστmεντ Τραινινγ Εδυχατιοναλ Σεσσιονσ Τηε Χεντερ φορ Ινϖεστmεντ Τραινινγ, βεττερ κνοων ασ τηε Χαλλαν Χολλεγε, προϖιδεσ α φουνδατιον οφ κνοωλεδγε φορ ινδυστρψ προφεσ σιοναλσ ωηο αρε ινϖολϖεδ ιν τηε ινϖεστmεντ δεχισιον mακινγ προ cess. It was founded in 1994 to provide clients and non-clients alike with basic- to intermediate-level instruction. Our next session is: Ιντροδυχτιον το Ινϖεστmεντσ Χηιχαγο, Οχτοβερ 27 28, 2015 Τηισ σεσσιον φαmιλιαριζεσ φυνδ σπονσορ τρυστεεσ, σταφφ, ανδ ασσετ mαναγεmεντ αδϖισορσ ωιτη βασιχ ινϖεστmεντ τηεορψ, τερmινολογψ, ανδ πραχτιχεσ. Ιτ λαστσ ονε ανδ α ηαλφ δαψσ ανδ ισ δεσιγνεδ φορ ιν dividuals who have less than two years of experience with assetmαναγεmεντ οϖερσιγητ ανδ/ορ συππορτ ρεσπονσιβιλιτιεσ. Τυιτιον φορ the Introductory Callan College session is $2,350 per person. Τυιτιον ινχλυδεσ ινστρυχτιον, αλλ mατεριαλσ, βρεακφαστ ανδ λυνχη ον each day, and dinner on the irst evening with the instructors. Φορ mορε ινφορmατιον αβουτ ρεσεαρχη ορ εδυχατιοναλ εϖεντσ, πλεασε χονταχτ Ραψ Χοmβσ: ινστιτυτε χαλλαν.χοm ορ Χυστοmιζεδ Σεσσιονσ Τηε Χαλλαν Χολλεγε ισ εθυιππεδ το χυστοmιζε α χυρριχυλυm το meet the training and educational needs of a speciic organization. Τηεσε ταιλορεδ σεσσιονσ ρανγε φροm βασιχ το αδϖανχεδ ανδ χαν take place anywhere even at your ofice. Λεαρν mορε ατ ηττπσ://ωωω.χαλλαν.χοm/εδυχατιον/χολλεγε/ ορ χονταχτ Κατηλεεν Χυννιε: / χυννιε χαλλαν.χοm Εδυχατιον: Βψ τηε Νυmβερσ 500 Αττενδεεσ (ον αϖεραγε) οφ τηε Ινστιτυτε σ αννυαλ Νατιοναλ Χονφερενχε 50+ Υνιθυε πιεχεσ οφ ρεσεαρχη τηε Ινστιτυτε γενερατεσ εαχη ψεαρ 3,300 Τοταλ αττενδεεσ οφ τηε Χαλλαν College since Ψεαρ τηε Χαλλαν Ινϖεστmεντσ Ινστιτυτε ωασ φουνδεδ Wε τηινκ τηε βεστ ωαψ το λεαρν σοmετηινγ ισ το τεαχη ιτ. Εντρυστινγ χλιεντ εδυχατιον το ουρ χονσυλταντσ ανδ σπεχιαλιστσ ενσυρεσ τηατ τηεψ ηαϖε α τοταλ χοmmανδ οφ τηειρ συβϕεχτ mαττερ. Τηισ ισ ονε ρεασον ωηψ εδυχατιον ανδ ρεσεαρχη ηαϖε been cornerstones of our irm for more than 40 years. Ρον Πεψτον, Χηαιρmαν ανδ ΧΕΟ Χαλλαν Ινϖεστmεντσ Ινστιτυτε ανδ τηε Χαλλαν Χολλεγε