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HomeMy WebLinkAboutFWERF_CC III. Investment Performance of the Fund 2020-012019 Performance Review Fort Worth Employees’ Retirement Fund Fund Performance As of December 31, 2019 (Preliminary) Performance is net of fees, except where noted. Performance is annualized for periods greater than one year. Indices show N/A for since inception returns when the fund contains more history than the corresponding benchmark. Market values and performance shown are preliminary and subject to change. Calendar Year Performance Data Through December 31, 2019 (Preliminary) Performance shown is net of fees, preliminary, and subject to change. 9.11 8.54 4.28 23.89 13.36 3.65 12.78 20.45 -1.59 23.50 5.82 10.75 -0.39 27.08 16.15 19.01 11.78 17.56 -1.42 -5.38 -8.96 25.17 14.54 7.38 17.22 5.55 -29.44 21.21 11.26 0.16 11.36 12.32 4.89 -0.16 8.01 14.63 -3.77 15.20 -35 -25 -15 -5 5 15 25 35 Annual Return (%)Calendar Year Simple Average Geometric Average Historical Performance vs. Peers As of September 30, 2019 –All Public Plans $1B-$5B Rank of 1 = Best Rank of 100 = Worst Performance is net of fees and annualized for periods greater than one year. Historical Standard Deviation vs. Peers As of September 30, 2019 –All Public Plans $1B-$5B Rank of 100 = Lowest Risk Rank of 1 = Highest Risk Performance is net of fees and annualized for periods greater than one year. Historical Sharpe Ratio vs. Peers As of September 30, 2019 –All Public Plans $1B-$5B Rank of 1 = Best Rank of 100 = Worst Performance is net of fees and annualized for periods greater than one year. Rolling 10-Year Sharpe Ratio As of September 30, 2019 Sharpe Ratio (a metric that measures the risk- adjusted return) has increased over time. This is positive trend. Performance is net of fees and annualized for periods greater than one year. Rolling 10-Year Standard Deviation As of September 30, 2019 Standard Deviation (a metric that measures volatility) has decreased over time. This is a positive trend given funded status and contribution policy. Performance is net of fees and annualized for periods greater than one year. Asset Allocation & 2020 Work Plan 9 Active/Passive Allocation & Effective Fees As of December 31, 2019 (Preliminary) Allocations may not sum up to 100% due to rounding. Private Equity, Hedge Fund, and Real Estate fees consist of management fees and exclude all performance-based fees. Private Equity fee is based on invested capital. 2020 Work Plan In addition to regularly scheduled performance updates and manager reviews, the following investment topics are slated for review in 2020: •February •Follow-Up on Diversification Structure Review •March •Growth/High Growth Structure Study •April •Asset Allocation Study and Review •Review of SB 322 Report •May •Investment Policy Review •June •Capital Preservation Structure Study Disclaimer of Warranties and Limitation of Liability -This document was prepared by RVK, Inc. (RVK) and may include information and data from some or all of the following sources:client staff; custodian banks; investment managers; specialty investment consultants; actuaries; plan administrators/record-keepers; index providers; as well as other third-party sources as directed by the client or as we believe necessary or appropriate.RVK has taken reasonable care to ensure the accuracy of the information or data, but makes no warranties and disclaims responsibility for the accuracy or completeness of information or data provided or methodologies employed by any external source. This document is provided for the client’s internal use only and does not constitute a recommendation by RVK or an offer of, or a solicitation for, any particular security and it is not intended to convey any guarantees as to the future performance of the investment products, asset classes, or capital markets.