City of Fort Bragg
PARS 115 Trust –Pension Rate Stabilization Program Client Review August, 2024
City of Fort Bragg ▎ 2
Contacts
Ryan Nicasio, CEBS
Senior Vice President
(800) 540-6369 x134
[email protected]
Ashley Baires
Client Services Coordinator
(800) 540-6369 x170
[email protected]
Dennis Mullins
Senior Portfolio Manager
(513) 304-0398
[email protected]
City of Fort Bragg ▎3
Pars Trust Team
Trust Administrator & Consultant*
40 Years of Experience
(1984-2024)
2,000+
Plans under
Administration
1,000+
Public Agency
Clients
$8.1B
Assets under
Administration
Investment Manager
• Investment sub-advisor to trustee U.S. Bank
• Institutional asset management solutions
• Fixed income and multi asset portfolios
• Active and passive platform options
• Customized portfolios (with minimum asset level)
40+
Years of Experience
(As of 3/31/24)
$244.8B *
Assets under Management
& Advisement
Trustee
• 5th largest commercial bank
• Safeguard plan assets
• Oversight protection as plan fiduciary
• Custodian of assets
161
Years of Experience
(1863-2024)
$10.3T
Assets under
Administration
500+
115 Trust Clients
• Serves as record-keeper, consultant,
and central point of contact
• Sub-trust accounting
• Coordinates all agency services
• Monitors plan compliance
(IRS/GASB/State Government Code)
• Processes contributions/disbursements
• Hands-on, dedicated support teams
500 K+
Plan Participants
*Assets under management and advisement as of March 31, 2024, includes fixed income and multi asset class portfolios
Investment Management Services by PFM Asset Management as sub-advisor * See important information regarding PARS in the Disclaimer page at the end of the presentation.
City of Fort Bragg ▎ 4
Subaccounts
OPEB and pension assets are
individually sub-accounted,
and can be divided by dept.,
bargaining group, or cost center.
Assets in the PARS Section 115
Combination Trust can be used
to address unfunded liabilities.
Financial Stability
Allows separate investment
strategies for OPEB and
pension subaccounts.
Flexible Investing
OPEB and pension assets
aggregate and reach lower fees
on tiered schedule sooner –
saving money!
Anytime Access Economies-of-Scale
Trust funds are available
anytime; OPEB for OPEB
and pension for pension.
No set-up costs, no minimum
annual contribution amounts,
and no fees until assets are added.
No Set Up Cost or Minimums
Retiree Medical Benefits
Prefund OPEB GASB 75
OPEB
$0
Reimburse agency; or
Pay benefits provider
Pension Rate Stabilization Program
Prefund Pension (PRSP) GASB 68
Pension
$1.79 M
Reimburse agency; or
Pay retirement system
Assets can be used to: Assets can be used to:
prefund
either or both
General Fund
PARS IRS-Approved Section 115 Trust
City of Fort Bragg ▎5
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust Trustee Approach: Discretionary
Plan Effective Date: June 27, 2022
Plan Administrator: City Manager
Current Investment Strategy: Moderately Conservative Strategic Blend (Active); Pooled Account Summary of Agency’s Pension Plan
AS OF JUNE 30, 2024:
Initial Contribution: March 2023: $1,614,392
Additional Contributions: $0
Total Contributions: $1,614,392
Disbursements: $0
Net Investment Earnings: $173,495
Account Balance: $1,787,887
City of Fort Bragg ▎6
Summary of Agency’s pension Plan
HISTORY OF CONTRIBUTIONS, DISBURSEMENTS, AND TOTAL ASSETS AS OF JUNE 30, 2024:
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Plan Month Ending
Contributions
Disbursements
Total Assets
Month Contributions Disbursements Total Assets
Mar-23 $1,614,392 $0 $1,622,851
Apr-23 $0 $0 $1,630,727
May-23 $0 $0 $1,624,837
Jun-23 $0 $0 $1,651,438
Jul-23 $0 $0 $1,672,511
Aug-23 $0 $0 $1,652,110
Sep-23 $0 $0 $1,603,560
Oct-23 $0 $0 $1,570,647
Nov-23 $0 $0 $1,661,626
Dec-23 $0 $0 $1,733,514
Jan-24 $0 $0 $1,734,087
Feb-24 $0 $0 $1,744,907
Mar-24 $0 $0 $1,774,327
Apr-24 $0 $0 $1,725,102
May-24 $0 $0 $1,767,950
Jun-24 $0 $0 $1,787,887
City of Fort Bragg ▎7
Pension Funding Status
As of June 30, 2022, City of Fort Bragg’s CalPERS pension plan is funded as follows*:
* Data through 2029-30 from Agency’s latest CalPERS actuarial valuation.
Combined Miscellaneous
& Safety Groups *
Valuation as of
June 30, 2021
Valuation as of
June 30, 2022 Change
Actuarial Liability $42.5 M $44.4 M 4.5% ↑
Assets $34.3 M $38.2 M 11.3% ↑
Unfunded Liability $8.1 M $6.2 M 24.3% ↓
Funded Ratio 80.8% 86.1% 6.5% ↑
Employer Contribution Amount $1.40 M $469 K 66.6% ↓ (FY 22-23) (FY 23-24) Employer Contribution Amount – Projected * --- $1.23 M 163.4% ↑ (FY 29-30) City of Fort Bragg ▎ 8
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Jun-23Jun-24
Plan Year Ending
AS OF JUNE 30, 2024
Pension Plan total Returns
*Plan Year Ending June 2023 is based on 4
months of activity.
Returns are net of the embedded fund fees and
gross of trustee and trust administrator fees
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value. Past performance does not guarantee future results. Performance returns are impacted by agency plan activity and may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
The advisor to the PARS portfolios is U.S. Bank, and PFM Asset Management serves as sub-advisor to U.S. Bank to manage these portfolios. Please see important additional disclosures to the PARS portfolios included in the individual strategy information at the end of this presentation.
Inception to Date (Annualized)
8.59%
Year Returns
Jun-23* 2.51%
Jun-24 8.87%
City of Fort Bragg ▎9
Investment Review
PARS/115P Moderately Conservative Strategic Blend
Client Management Team PFM Asset Management LLC
1 California Street
Suite 1000
San Francisco, CA 94111
1735 Market Street
43rd Floor
Philadelphia, PA 19103
Investment Performance Review
For the Quarter Ended March 31, 2024
PFM Asset Management
10 Financial Markets & Investment Strategy Review
11 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years
DOMESTIC EQUITY
S&P 500 10.56% 10.56% 29.88% 11.49% 15.05% 14.09% 12.96% Russell 3000 Index 10.02% 10.02% 29.29% 9.78% 14.34% 13.45% 12.33% Russell 1000 Value Index 8.99% 8.99% 20.27% 8.11% 10.31% 9.16% 9.01% Russell 1000 Index 10.30% 10.30% 29.87% 10.45% 14.76% 13.85% 12.68% Russell 1000 Growth Index 11.41% 11.41% 39.00% 12.50% 18.52% 18.06% 15.98% Russell Midcap Index 8.60% 8.60% 22.35% 6.07% 11.10% 10.58% 9.95% Russell 2000 Value Index 2.90% 2.90% 18.75% 2.22% 8.17% 6.55% 6.87% Russell 2000 Index 5.18% 5.18% 19.71% -0.10% 8.10% 7.73% 7.58% Russell 2000 Growth Index 7.58% 7.58% 20.35% -2.68% 7.38% 8.40% 7.89%
INTERNATIONAL EQUITY
MSCI EAFE (Net) 5.78% 5.78% 15.32% 4.78% 7.33% 6.70% 4.80% MSCI AC World Index (Net) 8.20% 8.20% 23.22% 6.96% 10.92% 10.23% 8.66% MSCI AC World ex USA (Net) 4.69% 4.69% 13.26% 1.94% 5.97% 5.88% 4.25% MSCI AC World ex USA Small Cap (Net) 2.11% 2.11% 12.80% 0.38% 6.24% 5.74% 4.74% MSCI EM (Net) 2.37% 2.37% 8.15% -5.05% 2.22% 3.72% 2.95%
ALTERNATIVES
FTSE NAREIT Equity REIT Index -0.20% -0.20% 10.54% 4.14% 4.15% 5.08% 6.61% FTSE EPRA/NAREIT Developed Index -1.05% -1.05% 8.57% -0.19% 0.75% 3.08% 4.00% FTSE Global Core Infrastructure 50/50 Index (Net) 1.55% 1.55% 3.22% 2.91% 3.78% 5.27% 5.60% Bloomberg Commodity Index Total Return 2.19% 2.19% -0.56% 9.11% 6.38% 4.26% -1.56%
FIXED INCOME
Blmbg. U.S. Aggregate -0.78% -0.78% 1.70% -2.46% 0.36% 1.06% 1.54% Blmbg. U.S. Government/Credit -0.72% -0.72% 1.74% -2.35% 0.62% 1.27% 1.70% Blmbg. Intermed. U.S. Government/Credit -0.15% -0.15% 2.69% -1.06% 1.09% 1.43% 1.61% Blmbg. U.S. Treasury: 1-3 Year 0.28% 0.28% 2.94% 0.01% 1.13% 1.20% 1.06% ICE BofAML Global High Yield Constrained (USD) 1.47% 1.47% 11.09% 0.43% 3.12% 3.63% 3.52% Blmbg. Global Aggregate Ex USD -3.21% -3.21% -0.71% -6.53% -2.50% -0.82% -1.38% JPM EMBI Global Diversified 2.04% 2.04% 11.28% -1.39% 0.71% 1.71% 3.05%
CASH EQUIVALENT
90 Day U.S. Treasury Bill 1.30% 1.30% 5.35% 2.65% 2.06% 1.94% 1.41% Source: Investment Metrics. Returns are expressed as percentages. Please refer to the last page of this document for important disclosures relating to this material. 12 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
Asset Class Our Q2 2024 Investment Outlook Comments
• Fed’s guidance of higher economic growth and moderating inflation a positive but recent uptick in inflation data warrants attention. Markets reacted positively to March Fed projections with S&P hitting all time high. • Rising valuations are supported by improving earnings growth expectations but any negative news could lead to a pullback. • Mid- and small-cap valuations are attractive and would benefit as investor sentiment/earnings growth expectations improve. Exposure to interest rate sensitive sectors such as regional banks remains a concern.
U.S. Equities
Large-Caps
Mid-Caps
Small-Caps
• International equities continue to trade at a discount to U.S. equities but slowing economic growth in Europe and China is a headwind. • EM equities trade at attractive valuations relative to developed market equities. We remain cautious on China and are closely monitoring the recent change in investor sentiment towards Chinese equities. • International small-caps provide exposure to foreign local economies, but uneven economic growth and geopolitical tensions leads us to be at neutral positioning.
• Overall, we maintain neutral exposure to international equities.
Non-U.S. Equities
Developed Markets
Emerging Markets
International Small-Caps
• The Fed’s recent guidance points towards soft-landing scenario with three expected rate cuts in 2024. Yields at short-end of the curve look attractive even as long-term yields fell back from the recent highs. We expect a further fall in yields as inflation continues to moderate. • Credit markets remain attractive due to strong corporate fundamentals.
We continue to seek diversified credit exposure and are closely watching signs for any distress in the corporate credit space.
Fixed Income
Long-Duration,
Interest Rate-Sensitive
Sectors
Credit-Sensitive Sectors
• Higher interest rates and rising foreclosure for office buildings are headwinds for private real estate returns. Public REITs have recovered from the lows in 2023. We expect this trend to continue helped by falling rates and economic soft landing.
• Private equity is facing headwinds from higher leverage costs and falling valuations. Debt strategies may benefit from banks’ tighter lending standards as long as default rates remain low.
• Increased infrastructure investment in the U.S. post the passing of Jobs Act and Chips Act a positive for infrastructure. Transition to renewable energy is another tailwind for both private and listed infrastructure while higher interest rates are headwinds.
Alternatives
Real Estate
Private Equity
Private Debt
Infrastructure
Current outlook Outlook one quarter ago Slightly Positive Positive
Slightly Neutral
Negative
Negative
Investment Strategy Overview
The view expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change. 13 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
Inflation:
• Inflation continues to moderate but has proven to be
stickier than expected, predominantly in housing
and service sectors. Globally, inflation has
continued to moderate.
• Recent upside surprises in the U.S. warrants closer
attention but expect moderating trend to continue.
Economic Growth:
• U.S. economic growth is led by consumers and
supported by a robust labor market. Recent
recovery in manufacturing activity along with
continued strength in services a tailwind.
• Economic growth outside U.S. remain mixed with
slower growth projected in Eurozone.
Monetary Policy:
• Recent Fed guidance implies three rate cuts in 2024
and points to an economic soft landing but path of
rate cuts remains uncertain.
• Globally, central banks are nearing the start of rate cutting cycle in reaction to moderating inflation with
the Swiss central bank being the first to cut.
Labor Markets:
• The labor market remains strong, but we have seen
cooling conditions from the extreme levels of 2022.
• Strong wage increases reflect a competitive labor
market and is a key focus for monetary policy
moving forward.
Consumer Spending (U.S.):
• Consumer confidence reached a multi-year high
following strong wage growth, a resilient labor
market, and moderating inflation.
• Hiring, wage growth, and increased hours worked
have all played a role in boosting personal income
and spending and we expect consumer strength to
continue as labor markets remain healthy.
Financial Conditions:
• Financial conditions continue to ease as the Fed
pivot remains in play alongside strength in various
economic indicators.
• With interest rates remaining elevated, we continue
to focus on identifying pockets of stress within
financial markets.
Political Risks:
• Geopolitical risks continue to remain elevated.
U.S./China tensions, Russia/Ukraine war,
Israel/Hamas conflict, China’s moves in South
China Sea and Taiwan Strait further add to risks.
• Elections across the globe could also lead to shortterm volatility.
Valuations:
• U.S. equity and credit markets have experienced a
run up in valuations amid strong corporate
fundamentals and continued economic growth.
• International equities look attractive but continued
economic and geopolitical uncertainty is leading to
increased volatility.
Corporate Fundamentals:
• Earnings growth expectations are improving while
profit margins are stabilizing at pre-pandemic levels.
• Higher cash levels especially across S&P 500
companies, increasing stock buybacks and lower
credit default rates are positives.
Stance Unfavorable
to Risk Assets
Stance Favorable
to Risk Assets Current outlook Outlook one quarter ago Slightly Positive Positive
Slightly Neutral
Negative
Negative
Factors to Consider Over the Next 6-12 Months
Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. 14 Plan Performance Summary
15 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 95,233,845 100.00 2.25 2.25 9.62 1.17 4.25 4.41 N/A 4.19 07/01/2015 Blended Benchmark 2.15 2.15 8.67 1.26 4.21 4.38 N/A 4.29 Domestic Equity 23,089,499 24.25 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Russell 3000 Index 10.02 10.02 29.29 9.78 14.34 13.45 12.33 8.81 Dodge & Cox Stock 2,526,506 2.65 8.50 8.50 25.59 10.37 13.57 11.80 11.08 8.38 02/01/2024 iShares S&P 500 Value ETF 1,138,794 1.20 8.01 8.01 25.36 11.98 13.06 11.19 10.44 7.70 02/01/2024 Columbia Contrarian Core Inst3 3,044,503 3.20 10.50 10.50 34.37 11.44 16.16 14.07 12.94 8.52 02/01/2024 Vanguard Growth & Income Adm 5,823,839 6.12 12.44 12.44 31.75 11.98 15.21 14.10 13.03 9.70 02/01/2024 Harbor Capital Appreciation Ret 1,675,684 1.76 13.75 13.75 47.91 9.32 17.22 17.99 N/A 9.12 02/01/2024 iShares S&P 500 Growth ETF 1,662,286 1.75 12.69 12.69 33.49 9.99 15.57 15.68 14.36 9.55 02/01/2024 S&P 500 10.56 10.56 29.88 11.49 15.05 14.09 12.96 8.73
iShares Russell Mid-Cap ETF 3,273,960 3.44 8.55 8.55 22.16 5.90 10.93 10.42 9.78 10.13 02/01/2024 Russell Midcap Index 8.60 8.60 22.35 6.07 11.10 10.58 9.95 10.17 Undisc Managers Behavioral Val R6 1,982,105 2.08 6.39 6.39 21.25 9.73 12.70 10.04 9.96 8.69 02/01/2024 Emerald Growth Institutional 1,961,823 2.06 5.83 5.83 21.02 -1.45 7.91 9.71 8.79 9.53 02/01/2024 Russell 2000 Index 5.18 5.18 19.71 -0.10 8.10 7.73 7.58 9.44 International Equity 5,933,487 6.23 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Dodge & Cox International Stock 778,384 0.82 3.13 3.13 13.38 5.14 7.30 5.47 4.02 6.22 02/01/2024 MFS International Growth R6 791,183 0.83 4.85 4.85 10.36 3.70 8.02 9.21 7.08 5.66 02/01/2024 DFA Large Cap International I 2,246,328 2.36 5.73 5.73 15.46 5.34 7.86 7.10 5.04 6.49 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Hartford Schroders Emerging Mkts Eq 2,117,592 2.22 3.46 3.46 7.24 -6.93 2.72 4.27 N/A 8.32 02/01/2024 MSCI EM (net) 2.37 2.37 8.15 -5.05 2.22 3.72 2.95 7.35
Other Growth 833,321 0.88 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Vanguard Real Estate ETF 833,321 0.88 -1.19 -1.19 8.50 1.72 3.68 4.64 6.20 3.95 02/01/2024 MSCI US REIT Index -0.32 -0.32 10.37 4.03 4.14 5.07 6.54 3.99 Asset Allocation & Performance
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. 16 Asset Allocation & Performance
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Fixed Income 62,295,046 65.41 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 Baird Aggregate Bond Inst 16,249,276 17.06 -0.45 -0.45 2.80 -2.17 0.81 1.45 1.97 0.95 03/01/2024 iShares Core US Aggregate Bond ETF 11,786,198 12.38 -0.75 -0.75 1.61 -2.48 0.32 1.02 1.50 0.84 03/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 0.92 Dodge & Cox Income 15,407,663 16.18 -0.32 -0.32 4.09 -0.92 1.89 2.28 2.52 -0.24 02/01/2024 PGIM Total Return Bond R6 15,727,578 16.51 0.14 0.14 4.61 -1.68 0.96 1.84 2.43 -0.11 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 MainStay MacKay High Yield Corp Bond Fund 3,124,331 3.28 1.68 1.68 9.56 3.00 4.40 4.48 4.61 1.31 03/01/2024 ICE BofA High Yield Master II 1.51 1.51 11.04 2.21 4.03 4.25 4.36 1.19 Cash Equivalent 3,082,491 3.24 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 First American Government Obligation - X 3,082,491 3.24 1.31 1.31 5.28 2.61 1.95 1.82 N/A 0.86 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. 17 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016
Total Portfolio 11.32 -13.32 5.27 10.64 13.64 -2.83 9.44 4.81 Blended Benchmark 10.29 -12.35 5.50 9.89 13.55 -1.87 8.13 5.45 Domestic Equity N/A N/A N/A N/A N/A N/A N/A N/A
Russell 3000 Index 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 12.74 Dodge & Cox Stock 17.48 -7.22 31.73 7.16 24.83 -7.07 18.33 21.28 iShares S&P 500 Value ETF 22.02 -5.41 24.67 1.24 31.71 -9.09 15.19 17.17 Columbia Contrarian Core Inst3 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 8.77 Vanguard Growth & Income Adm 24.76 -17.11 29.11 18.08 29.77 -4.61 20.80 12.12 Harbor Capital Appreciation Ret 53.86 -37.67 15.74 54.56 33.39 -0.96 36.68 N/A iShares S&P 500 Growth ETF 29.80 -29.51 31.76 33.21 30.91 -0.17 27.20 6.74 S&P 500 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 iShares Russell Mid-Cap ETF 17.07 -17.43 22.38 16.91 30.31 -9.13 18.32 13.58 Russell Midcap Index 17.23 -17.32 22.58 17.10 30.54 -9.06 18.52 13.80 Undisc Managers Behavioral Val R6 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 20.97 Emerald Growth Institutional 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 10.89 Russell 2000 Index 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 International Equity N/A N/A N/A N/A N/A N/A N/A N/A
MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 Dodge & Cox International Stock 16.70 -6.78 11.03 2.10 22.78 -17.98 23.94 8.26 MFS International Growth R6 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 2.79 DFA Large Cap International I 17.87 -13.03 12.81 8.12 22.04 -14.14 25.37 3.16 MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 Hartford Schroders Emerging Mkts Eq 9.00 -22.14 -4.93 23.78 22.32 -15.42 N/A N/A MSCI EM (net) 9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19 Other Growth N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Real Estate ETF 11.75 -26.20 40.38 -4.72 28.91 -5.95 4.95 8.53 MSCI US REIT Index 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 8.60 Calendar Year Comparative Performance
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. 18 Calendar Year Comparative Performance
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016
Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A
Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 Baird Aggregate Bond Inst 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 3.52 iShares Core US Aggregate Bond ETF 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 2.56 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 Dodge & Cox Income 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 5.61 PGIM Total Return Bond R6 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 4.83 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 MainStay MacKay High Yield Corp Bond Fund 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 15.99 ICE BofA High Yield Master II 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 17.49 Cash Equivalent N/A N/A N/A N/A N/A N/A N/A N/A
ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 First American Government Obligation - X 5.00 1.54 0.03 0.40 2.12 1.74 0.79 N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable. 19 QTR
Market Value
As of
01/01/2024
Net Flows Return On
Investment
Market Value
As of
03/31/2024
Total Portfolio 92,983,920 391,568 1,858,356 95,233,845 Account Reconciliation
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 20 Allocation Mandate Weight (%)
Jul-2015
PARS Moderately Conservative 100.0
Historical Hybrid Composition - Blended Benchmark
PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 See next page for a composition of the blended benchmark. 21 Allocation Mandate Weight (%)
Oct-2012
Blmbg. U.S. Aggregate 49.3
S&P 500 15.5
ICE BofA 1-3 Yr. Gov/Corp 14.0
FTSE 1 Month T-Bill 5.0
Russell 2000 Index 4.5
MSCI EAFE (net) 4.0
Russell Midcap Index 3.0
MSCI EM (net) 2.0
ICE BofA High Yield Master II 1.8
Wilshire US REIT Index 1.0
Apr-2007
Blmbg. U.S. Aggregate 40.0
ICE BofA 1-3 Yr. Gov/Corp 25.0
S&P 500 25.0
FTSE 1 Month T-Bill 5.0
MSCI EAFE (net) 3.5
Russell 2000 Index 1.5
Jul-1986
Blmbg. U.S. Aggregate 40.0
S&P 500 30.0
ICE BofA 1-3 Yr. Gov/Corp 25.0
FTSE 1 Month T-Bill 5.0
Historical Hybrid Composition - PARS Moderately Conservative PARS/115P Moderately Conservative Strategic Blend As of March 31, 2024 22 This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change.
Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report.
Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.
For more information regarding PFMAM’s services or entities, please visit www.pfmam.com. © 2024 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.
IMPORTANT DISCLOSURES
23 Not A Deposit - Not FDIC Insured - May Lose Value - Not Bank Guaranteed - Not Insured By Any Federal Government Agency Past performance does not guarantee future results. All performance data, while deemed obtained from reliable sources, is not guaranteed for accuracy. Indexes shown are unmanaged and are not available for investment. Gross returns do not reflect the deduction of applicable fees which would reduce performance returns.
For the Period Ending June 2024
Performance for PARS/115P MOD CONSERV SB (6746050104)
Asset Allocation
Your total portfolio of investable assets may differ from the market value on your periodic statement of account due to certain assets being excluded from the calculation of your investment return.
Please contact a member of your Relationship Team for more information.
ASSET CLASS MARKET VALUE % OF TOTAL
Cash Equivalents $3,947,840.17 4.05%
Fixed Income $64,090,371.34 65.76%
Equities $27,986,605.18 28.72%
Real Assets $1,433,145.43 1.47%
Total $97,457,962.12 100%
Performance Returns
1 MONTH 3 MONTH
CALENDAR
QUARTER
TO DATE
CALENDAR
YEAR TO
DATE
FISCAL
YEAR TO
DATE
AVERAGE
ANNUAL
RETURNS:
1 YEAR
AVERAGE
ANNUAL
RETURNS:
3 YEAR
AVERAGE
ANNUAL
RETURNS:
5 YEAR
SINCE
INCEPTION
JUL 2015*
Total Portfolio
Gross of Fees 1.17% 0.91% 0.91% 3.43% 8.88% 8.88% 0.36% 3.88% 4.22% Total Portfolio
Net of Fees 1.15% 0.83% 0.83% 3.27% 8.54% 8.54% 0.05% 3.57% 3.99% Asset Classes
Gross of Fees
Cash Equivalents 0.43% 1.30% 1.30% 2.62% 5.05% 5.05% 2.92% 2.01% 1.53% Fixed Income 1.00% 0.38% 0.38% 0.24% 4.16% 4.16% (2.00%) 0.45% 1.65% Equities 1.73% 2.32% 2.32% 11.30% 20.20% 20.20% 4.98% 11.27% 10.08% Real Assets (0.27%) (4.73%) (4.73%) (5.96%) 1.50% 1.50% (3.58%) 2.57% N/A * The beginning date for this information refers to the date your account was placed on performance calculation system at U.S. Bank.
Not A Deposit - Not FDIC Insured - May Lose Value - Not Bank Guaranteed - Not Insured By Any Federal Government Agency Past performance does not guarantee future results. All performance data, while deemed obtained from reliable sources, is not guaranteed for accuracy. Indexes shown are unmanaged and are not available for investment. Gross returns do not reflect the deduction of applicable fees which would reduce performance returns. 1 MONTH 3 MONTH CALENDAR
QUARTER
TO DATE
CALENDAR
YEAR TO
DATE
FISCAL
YEAR TO
DATE
AVERAGE
ANNUAL
RETURNS:
1 YEAR
AVERAGE
ANNUAL
RETURNS:
3 YEAR
AVERAGE
ANNUAL
RETURNS:
5 YEAR
SINCE
INCEPTION
JUL 2015*
Market Indicators
Gross of Fees
BBARC
Intermediate US
Government/Cred
it Index
0.80% 0.64% 0.64% 0.49% N/A 4.19% (1.18%) 0.71% N/A
S&P 500 Index
(Total Return) 3.59% 4.28% 4.28% 15.29% N/A 24.56% 10.01% 15.05% N/A * The beginning date for this information refers to the date your account was placed on performance calculation system at U.S. Bank.
Not A Deposit - Not FDIC Insured - May Lose Value - Not Bank Guaranteed - Not Insured By Any Federal Government Agency Past performance does not guarantee future results. All performance data, while deemed obtained from reliable sources, is not guaranteed for accuracy. Indexes shown are unmanaged and are not available for investment. Gross returns do not reflect the deduction of applicable fees which would reduce performance returns.
Disclaimer
Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S.
Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
Public Agency Retirement Services (“PARS”) serves as the trust administrator to the Public Agencies Post-Employment Benefits Trust, Public Agencies Post-Retirement Health Care Plan Trust, and the Public Agency Retirement System Trust (the “Trusts”). U.S. Bank National Association (“U.S. Bank”) serves as the discretionary trustee to the Trusts. In its capacity as discretionary trustee, U.S. Bank delegates the investment management of the Trusts to PFM Asset Management LLC (“PFMAM”) through a subadvisory agreement. PFMAM is an investment adviser registered with the U.S.
Securities and Exchange Commission (“SEC”) and an indirect subsidiary of U.S. Bank.
For more information regarding PFMAM’s services please visit www.pfmam.com.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Disclaimer