fixed income management · founded in 1988. firm is 100% employee-owned and certified as an mbe...

Fixed Income ManagementQuarter Ended September 30, 2019

5 Houston Center1401 McKinney, Suite 1600

Houston, TX 77010Tel: (713) 853-2359Fax: (713) 853-2300

Ruby@GarciaHamiltonAssociates.comwww.GarciaHamiltonAssociates.com

Awards/rankings may not represent client experiences and are not indicative of future performance. Go to www.garciahamiltonassociates.com/awards/ for additional information on each award.

Presented By:

Gilbert A. Garcia, CFAManaging Partner

Ruby Muñoz DangPartner

Founded in 1988. Firm is 100% employee-owned and certified as an MBE firm. ESG/RI Manager and a Principles for Responsible Investment (PRI) signatory. Firm has 34 employees located in Houston, Texas. The 10 members of the fixed income investment team have 198 years combined investment experience and

over 80 years combined with the firm. Firm manages over $14.7 billion in assets under management. High quality fixed income strategies designed to prevent “negative surprises.” No debt.

Organization

1

Asset Breakdown

Data as of September 30, 2019

Other<1%

Mutual Fund7%

Corp Retirement5%

Insurance3%

Corp Non-Erisa8%

Endowment/Foundation

8%

Jointly Trusteed10%

Public59%

By Client

Fixed Income Aggregate

76%

Fixed Income Short Duration

4%

Fixed Income Intermediate Govt/Credit

11%Fixed Income

Enhanced Cash2%

Fixed Income Intermediate Aggregate

3%Other Fixed Income Products

4%

By Type

Partners

2

GILBERT ANDREW GARCIA, CFAManaging PartnerPortfolio ManagerBA: Yale UniversityYear Hired: 2002Industry Experience: 34 yrsOwnership: 36.4%

RUBY MUÑOZ DANGDirector of Marketing andClient Services

BA: University of Houston – Downtown

Year Hired: 1995Industry Experience: 26 yrsOwnership: 9.3%

NANCY RODRIGUEZPortfolio ManagerBS: University of HoustonYear Hired: 1998Industry Experience: 32 yrsOwnership: 5.3%

BENJAMIN D. MONKIEWICZPortfolio ManagerBA: Sam Houston State UniversityYear Hired: 2010Industry Experience: 9 yrsOwnership: 1.5%

GARY MONTGOMERYSystems ManagerUniversity of Houston – Downtown Year Hired: 2007Industry Experience: 17 yrsOwnership: 1.5%

JANNA HAMILTONMarketing and Client ServicesBA: Florida Atlantic UniversityAIMSE: Wharton School of BusinessYear Hired: 1994Industry Experience: 39 yrsOwnership: 18.5%

KAREN H. TASS, CFAPortfolio ManagerBA: Texas A&M UniversityMBA: University of HoustonYear Hired: 2010Industry Experience: 14 yrsOwnership: 6.2%

BETH L. MCWILLIAMSChief Compliance OfficerPatricia Stevens Secretarial CollegeYear Hired: 1994Industry Experience: 38 yrsOwnership: 5.0%

JEFFREY D. DETWILER, CFA, AAMSPortfolio ManagerBS: University of South FloridaMS: University of HoustonYear Hired: 2007Industry Experience: 23 yrsOwnership: 2.0%

STEPHANIE J. ROBERTSMarketing and Client ServicesBBA: Texas Southern UniversityYear Hired: 2000Industry Experience: 23 yrsOwnership: 7.3%

KEVIN LUNDAY, CPAChief Operating OfficerBBA: Texas Tech UniversityYear Hired: 2007Industry Experience: 18 yrsOwnership: 7.0%

Fixed Income Investment Team

3

GILBERT ANDREW GARCIA, CFAManaging PartnerPortfolio ManagerBA: Yale UniversityYear Hired: 2002Industry Experience: 34 yrs

KAREN H. TASS, CFAPartnerPortfolio ManagerBA: Texas A&M UniversityMBA: University of HoustonYear Hired: 2010Industry Experience: 14 yrsCoverage: Corporates

JEFFREY D. DETWILER, CFA, AAMSPartnerPortfolio ManagerBS: University of South FloridaMS: University of HoustonYear Hired: 2007Industry Experience: 23 yrsCoverage: Short Term

BENJAMIN D. MONKIEWICZPartnerPortfolio ManagerBA: Sam Houston State UniversityYear Hired: 2010Industry Experience: 9 yrsCoverage: MBS/Agencies

REESE WELLERInvestment AnalystBA: Texas Tech University Year Hired: 2017Industry Experience: 19 yrs

CONNIE FALCON DAVISInvestment AnalystBS: University of HoustonYear Hired: 2012Industry Experience: 7 yrsCoverage: Analytics

YVETTE M. DUEÑASInvestment Analyst BBA: University of Incarnate Word MBA: Our Lady of the Lake University Year Hired: 2016Industry Experience: 12 yrs

DON ELSENBROCKPortfolio Manager/ StrategistBS: University of HoustonMA in Economics: University of HoustonYear Hired: 2014Industry Experience: 27 yrsCoverage: Strategist/ Short Term

BRIAN SIMON Investment AnalystBA: Morehouse CollegeMBA: University of Houston-Victoria Year Hired: 2003-2007, 2018Industry Experience: 21 yrs

NANCY RODRIGUEZPartnerPortfolio ManagerBS: University of HoustonYear Hired: 1998Industry Experience: 32 yrsCoverage: Team Oversight

Firm Professionals

REGINA PERKINSOperations ManagerSan Antonio Community College Year Hired: 2003Industry Experience: 16 yrs

MORGAN DOYLEClient Relations Manager BS: University of TexasYear Hired: 2014Industry Experience: 5 yrs

JASON SIMPSONMarketing AssociateBA: Texas Tech University Year Hired: 2017Industry Experience: 12 yrs

4

NATALIE BERNALSenior Marketing AssociateBA: University of Notre DameYear Hired: 2019Industry Experience: 9 yrs

Public Funds Jackson County GE, MI Road Commission for Oakland County, MI Banner Health, AZ Nissan Motor Co., Ltd., TN Midwestern State University Foundation, TXAddison Police, IL City of Jacksonville Beach ERS, FL Retiree Health Care Trust, MI Baptist Health Assets, AR Operators Reinsurance Company, KY Northfield Mount Hermon School, MACity of Annapolis Police and Fire, MD Lake Bluff Police IL City of Roanoke, VA Bedford Fund, QUE Roman Catholic Archdiocese of Atlanta, GA Racine Community Foundation Inc., WI

Arkansas State Highway Employees, AR City of Lake Worth FF, FL City of Rockledge Police, GE & FF, FL Bethesda Inc., OH RPC, Inc., GA San Francisco Foundation, CA Arkansas Local Police & Fire, AR City of Lakeland, FL City of Sanford FF, FL Catholic Education of North Georgia, GA STP Nuclear Operation Company, TX San Juan Island Community Foundation, PRCity of Atlanta GE, GA Lantana FF, FL City of Sanford Police, FL Century Insurance Company, GU* Sulzer Pumps (US) Inc., TX Sarah Campbell Blaffer Foundation, TXCity of Atlanta Police & Fire, GA Lantana Police Relief, FL City of Sarasota Police, FL Church Extension Fund of the Michigan University Athletic Association, GA Seattle Foundation, WATown of Bay Harbor Islands GE, FL Lemont Police, IL City of Sebring Police, FL District, MI University of Maryland Medical System Shelby County Community Health

Berwyn Police & Fire, IL Lubbock Fire, TX City of St. Cloud Police & GE, FL City Public Service Decommissioning Trust, MD Foundation, ALCity of Bloomington Police, IL Macon-Bibb County, GA City of St. Louis FF, MO Trust, TX Silicon Valley Community Foundation, CACity of Boynton Beach GE, FL Marianas Public Land Trust, MP* St. Petersburg Police, FL Crime Stoppers of Houston, TX Endowments/Foundations Southern Baptist Foundation, TNBuffalo Grove Police, IL Matteson Fire, IL South Walton Fire Control District FF, FL District of Columbia Bar, DC American Quarter Horse Foundation, TX Tallahassee Memorial HealthCare City of Cape Coral Police & FF, FL Medford Retirement System, MA State Universities RS, IL FSM Development Bank, FM* Arkansas State University Foundation, AR Foundation, FL

Chicago FF Annuity & Benefit, IL City of Melbourne Police & FF, FL City of Sunrise Police, FL John P. McGovern Museum of Health & Arkansas Tech University Foundation, AR Triangle Community Foundation, NCChicago Municipal Annunity & Benefit, IL Metropolitan Water Reclamation City of Tamarac FF, FL Medical Science, TX Bakersfield College Foundation, CA United Methodist Foundation, NCChicago Public Schools, IL District, IL City of Tarpon Springs Police, FL KEW Management Investor, NY Baptist Health Foundation of University of Guam Endowment, GU*Chicago Transit Authority, IL Miami GE' & Sanitation ERS, FL City of Taylor GE Retirement System, MI Maryland Insurance Trust, MD San Antonio, TX University of Hartford, CTColorado FF & Police, CO City of Miramar Police, FL Teachers’ Retirement System, IL The Medical Foundation of North Board of Higher Education and Ministry, Waco Foundation, TX College of Micronesia Land Grant, FM* Municipality Of Anchorage, AK City of Temple Terrace Police & FF, FL Carolina, NC The United Methodist Church, TN Westminister Canterbury, VACoral Gables Retirement System MWRA Employees' RS, MA City of Titusville Police & FF, FL Micronesia Conservation Trust, FM* The Boyd and Joan Kelley Charitable White’s Residential & Family Services, IN City of Coral Springs FF, FL NC Association of County Urbana Police, IL Naples Community Hospital HealthCare Foundation, TX The Williams R. Watts Foundation Inc., FLCity of Coral Springs Police, FL Commissioners, NC Utrik Atoll, Marshall Islands, MH* System, FL Briarwood-Brookwood, Inc., TX Wichita Falls Area Community Foundation,City of Corpus Christi FF, TX NC League of Municipalities, NC City of Venice FF, FL Operators Reinsurance Company, CI Catholic Community Foundation of TX

Cook County Employees' & Officers' City of New Port Richey Police, FL City of Venice Police, FL Pacific Indemnity Insurance Company, GU* Minnesota, MN Xavier University of Louisiana, LA Annuity & Benefit, IL City of North Miami Beach GE, FL City of Vero Beach Police, FL Paradigm Indemnity Corporation, OR Catholic Foundation of Oklahoma, OK

Dallas Area Rapid Transit, TX City of North Miami Beach Police & FF, FL Village of Palm Springs Police & GE, FL Pheasants Forever, MN Children's Home Foundation, TX Taft – Hartley & UnionDFW International Airport, TX City of North Miami GE, FL Village of Tequesta Public Safety Roman Catholic Archdiocese of Atlanta, GA Community Foundation for the Fox Valley Bricklayers of Indiana, IN

Town of Davie Police, FL City of North Miami Police, FL Officers, FL Russell Hill Rogers Fund for the Arts, TX Region, WI Central Illinois Carptenters Retirement, ILTown of Davie FF, FL City of North Port Police, FL City of West Palm Beach Police, FL Specialty Equipment Market Assoc., CA Community Foundation of Greater Flint, MI District 1199J New Jersey Healthcare City of Deerfield Beach Police, FL Northern Marianas College, MP* City of West Palm Beach GE, FL Stetson University, Inc., FL The Community Foundation of Herkimer & Employers, NJCity of Deerfield Beach FF, FL City of Oakland Park Police & FF, FL City of West Palm Beach FF, FL Strategic Investment Fund for La Raza, DC Oneida Counties, TX IBEW Local Union #129, OH City of DeLand Police, FL City of Ocoee Police & FF, FL Westchester Police, IL St. Ignatius College Prep, IL Community Foundation for Northeast IBEW Local Union #351, NJ

Delray Beach Police, FF & GE, FL Oklahoma FF, OK City of Westland Police & FF, MI Sweeny Community Hospital, TX Florida, Inc., FL Indiana Electrical Workers Pension

Des Plaines FF & Police, IL Town of Orange Park Police, FL City of West Melbourne Police, FL Takecare Insurance Risk Management Curtis Institute of Music, PA Trust, IDDukes County, MA City of Ormond Beach Police, GE & FF, FL City of Wilton Manors Police & GE, FL Services, GU* E. Rhodes and Leona B. Carpenter Local 665 IATSE Annuity Fund, HIEl Paso County Retirement, CO City of Palm Beach Gardens FF, FL Winnetka Illinois Police & FF, IL Terrapin Insurance Company, CI Foundation, PA MARTA/ATU Local 732, GAEmployees of H.N.S. Management, CT Palm Beach County FF, FL City of Winston-Salem, NC University Athletic Association, Inc., GA East Bay Community Foundation, CA The Mason Tenders District Council of

ERS of Baltimore County, MD Town of Palm Beach, FL City of Winter Garden GE, Police & FF, FL University of Maryland Medical System East Texas Medical Center Foundation, TX Greater New York and Long Island, NYERF of the City of Dallas, TX Village of Palatine Poilice, IL City of Winter Haven Police, FL Pool, MD Embry Riddle Aeronautical University, FL Palm Tran, Inc./ATU Local 1577, GAEnglewood FF, FL Village of Palm Springs Police & GE, FL Wood Dale Police, IL Union Presbyterian Seminary, VA Florida A&M University Foundation, FL Plumbers Local Union #68, TXCity of Evanston Police, IL City of Pembroke Pines OPEB Trust, FL The Woodlands Firefighters' Retirement United Board For Chiristian Higher Fort Hays State University, KS Sacramento Area Electrical Workers, CACity of Evanston Fire, IL City of Pensacola GE & FF, FL System, TX Education in Asia, NY Gilbert Family Foundation, MI San Mateo HERE, CA

Fairfax County Uniformed RS, VA Pennsylvania Turnpike Commission Retiree Yap State Trust Fund, FM* United Regional Health Care System, TX Greater Milwaukee Foundation, MI Service Employees International Union City of Ft. Lauderdale GE, FL Medical Trust, PA Yorktown Independent School District, TX The Walters Art Gallery, MD Guam Community College Health And Welfare Fund, DCCity of Ft. Myers Police, FL Philadelphia Gas Works, PA Wistar Institute of Anatomy and Biology, PA Foundation, GU* Sheet Metal, Air, Rail, and TransportationCity of Ft. Walton Beach GE, FL City of Pinellas Park Police & GE, FL Corporate Non-ERISA The Widows Corporation, PA Hartford Foundation for Public Giving, CT Association Local #33, OHCity of Ft. Walton Beach Police, FL City of Plantation Police, FL Air Force Association, VA International Retinal Research Sheet Metal Workers Health Plan, CA

City of Ft. Walton Beach FF, FL City of Pontiac Police & FF, MI American Baptist Home Mission Corporate ERISA Foundation Inc., AL Teamsters Union Local NO. 35, NJFSM Social Security Administration, FM* Prince George’s County Police & FF, MD Society, PA Atmos Energy Corporation, TX Jewish Senior Life Foundation, NY WMATA/ Local 922 Retirement Plan, DC Government of Guam, GU* Prince William County Police, VA American Speech-Language-Hearing D.W. McMillan Hospital/ Escambia Louisiana Baptist Foundation, LA Greater Orlando Aviation Authority, FL City of Punta Gorda Police & GE, FL Association, MD County Healthcare, AL Marin Community Foundation, CA OtherCity of Hialeah FF, FL Rantoul Police, IL American Quarter Horse Association, TX Dimension Assurance LTD, CI Mary Institue & St. Louis Country Day American Beacon Garcia Hamilton Quality City of Hollywood FF, FL Republic of Palau Civil Service, Palau* Amerilodge Group LLC, MI Dimensions Health Corporation Pension School, MO Bond Fund (Mutual Fund), TXCity of Hollywood Police, FL Republic of Palau COFA Trust Fund, Palau* AOA Deposit and Loan Fund, GA Plan, MD Mary Louise Curtis Bok Foundation, PA Bivium Capital Partners, LLC, CAIllinois State Board of Investments, IL River Forest Police, IL Archbold Medical Center, Inc., GA H.N.S. Management Co., Inc, CT McDaniel College, Inc., MD Progress Investment Management, CAIllinois Student Assistance Commission, IL Riviera Beach GE, FL Archdiocese of Portland, OR Integris Health, Inc., OK Medical University of South Carolina

City of Riviera Beach Police, FL Attorney’s Liability Assurance Society, IL Millers Group, TX Foundation, SC

5

Representative Client List

Clients who have retained GH&A for 10 years or more are noted in green. This representative client list is provided for informational purposes only and should not be construed as an endorsement of ourservices. These clients were chosen for name recognition and may be invested in products other than those included in the presentation.

Investment Goal

Investment Goal

Our goal is to outperform the benchmark, net of fees, over a full market cycle using a high quality strategy with less risk, and low turnover. By setting realistic expectations, we avoid taking unnecessary risks.

Achieving our goal is centered around several core principles:

Preserve Principal

Maintain Liquidity

Provide High Current Income

Key Tools:

Sector Rotation

Controlled Interest Rate Anticipation

Yield Curve Positioning

6

Investment Style

High QualityPortfolio Dominated by U.S. Treasuries, Agency Debentures and Agency15-Year MBS

Corporate Securities Rated A or BetterSpread Product Exclusively in the Short to Intermediate Maturities to Reduce Volatility

No Big SurprisesNo Foreign Bonds/Yankees

No BBB Rated SecuritiesNo Sin Names -Tobacco, Gambling, Alcohol, Firearms

No DerivativesNo Leverage/ Dollar Rolls

No Pricing OverridesMaintain a Manageable Number of Securities

No Soft Dollars

FlexibilityActively Rotating Sectors

Actively Managing Yield CurveExploiting Smaller Markets

Risk ControlsPercentage Sector Allocation, Duration Contribution by Sector, Credit Reviews, Yield Curve,

Performance Attribution, and Peer Group Performance Monitoring7

Portfolio Construction

8

Source Ideas for Key Rate Durations

Economic Outlook

Rates Spreads Fed Activity

Yield Curve

Barbelled Neutral Bulleted

Sectors

Treasuries Spread Product

Duration*

Long 10% Neutral Short 10%

*The firm normally operates in a duration range of +/- 10% of the benchmark index. In extreme market environments, the firm operates in a duration range of +/- 25%.

Fixed Income Aggregate Composite Returns

9

QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Inception*

GH&A Gross of Fees 2.39% 7.31% 8.55% 4.57% 3.13% 3.72% 3.59% 4.90% 5.54% 6.25%

GH&A Net of Fees 2.35% 7.17% 8.37% 4.39% 2.95% 3.53% 3.40% 4.70% 5.34% 6.01%

Bloomberg Barclays Aggregate 2.27% 8.52% 10.30% 4.38% 2.92% 3.38% 2.72% 3.75% 4.20% 5.50%

0%

2%

4%

6%

8%

10%

12%

*Inception December 31, 1991. Periods longer than 12 months are annualized

Preliminary


Preliminary

Comparative Annualized Rates of Return For periods ending September 30, 2019Preliminary

Source: Barclays Live

Additional information is in the performance disclosure.

The percent weights shown are those of an actual portfolio that is representative of this strategy. The percent weights may vary depending on the dates shown as well as client-imposed restrictions, cash flows, etc.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

06' 07' 08' 09' 10' 11' 12' 13' 14' 15' 16' 17' 18'

Cash

MBS

Agcy

Trsy

Corp

10

Fixed Income Aggregate Historical Sector Weightings

We were underweight corporates as we saw no value

Started adding corporatesafter Bear Stearns

Reduced corporates as spreads narrowed and money supply suggested that economic activity would begin to slow

Increased financials in anticipation of a Trump victory

September 30, 2019

Increased

corporates

significantly

because of

historically wide

spreads/value and

“too big to fail”

Fixed Income Intermediate Govt/Credit Composite Returns

11

QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Inception*

GH&A Gross of Fees 1.47% 5.73% 7.09% 3.59% 2.57% 3.05% 2.97% 4.14% 4.79% 6.53%

GH&A Net of Fees 1.42% 5.58% 6.89% 3.39% 2.37% 2.85% 2.75% 3.91% 4.52% 6.14%

Bloomberg Barclays Int. Govt/Credit 1.37% 6.41% 8.17% 3.50% 2.40% 2.68% 2.15% 3.05% 3.59% 5.64%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

*Inception June 30, 1988. Periods longer than 12 months are annualized

Preliminary


Comparative Annualized Rates of Return For periods ending September 30, 2019



Preliminary

Fixed Income Short Duration Oppt Composite Returns

12

QTD YTD 1 Yr 2 Yrs 3 Yrs 5 Yrs 7 Yrs 10 Yrs Inception*

GH&A Gross of Fees 0.70% 2.69% 3.29% 2.19% 1.89% 1.98% 1.91% 2.44% 2.84%

GH&A Net of Fees 0.66% 2.61% 3.18% 2.06% 1.75% 1.87% 1.77% 2.29% 2.69%

Bloomberg Barclays 1-3 Year Govt 0.59% 3.07% 4.42% 2.18% 1.54% 1.34% 1.08% 1.21% 1.24%

0%

1%

2%

3%

4%

5%

*Inception March 31, 2009. Periods longer than 12 months are annualized.

Preliminary

PreliminaryPreliminary




Comparative Annualized Rates of Return For periods ending September 30, 2019

13

QTD YTD 1 Year 2 Years 3 Years 5 Years 7 Years 10

Years 15

Years Inception

to Date#

PortfoliosAssets in Millions

Short Duration Government – Gross of Fees*Inception December 2003

0.51% 1.75% 2.34% 1.73% 1.47% 1.66% 1.38% 1.73% 2.76% 2.78% 2 66

Short Duration Government – Net of Fees 0.50% 1.67% 2.23% 1.60% 1.34% 1.53% 1.25% 1.60% 2.62% 2.64% 2 66

Bloomberg Barclays 1-3 Year Govt 0.59% 3.07% 4.42% 2.18% 1.54% 1.34% 1.08% 1.21% 2.18% 2.14 N/A N/A

Intermediate Aggregate – Gross of Fees*Inception December 2007

1.42% 5.53% 7.12% 3.58% 2.63% 3.16% 3.08% 4.17% N/A 4.87% 26 425

Intermediate Aggregate – Net of Fees 1.36% 5.37% 6.92% 3.38% 2.43% 2.96% 2.87% 3.96% N/A 4.64% 26 425

Bloomberg Barclays Intermediate Aggregate 1.38% 6.18% 8.08% 3.48% 2.39% 2.74% 2.24% 3.16% N/A 3.60% N/A N/A

Government /Credit – Gross of Fees*Inception December 2004

3.23% 9.06% 10.49% 5.27% 3.41% 4.07% 3.83% 5.18% N/A 5.54% 10 466

Government /Credit – Net of Fees 3.18% 8.89% 10.25% 5.05% 3.20% 3.86% 3.61% 4.94% N/A 5.31% 10 466

Bloomberg Barclays Govt/Credit 2.64% 9.72% 11.32% 4.78% 3.16% 3.61% 2.86% 3.94% N/A 4.28% N/A N/A

Short Duration Govt./Credit – Gross of Fees*Inception September 2013

0.74% 3.22% 3.96% 2.59% 2.19% 2.19% N/A N/A N/A 2.17% 5 331

Short Duration Govt/Credit – Net of Fees 0.73% 3.16% 3.88% 2.52% 2.11% 2.12% N/A N/A N/A 2.10% 5 331

Bloomberg Barclays 1-3 Year Govt/Credit 0.69% 3.42% 4.64% 2.40% 1.82% 1.59% N/A N/A N/A 1.45% N/A N/A

Unconstrained Bond – Gross of Fees*Inception March 2009

0.70% 2.65% 3.10% 2.20% 1.91% 2.19% 2.32% 4.07% N/A 4.96% 2 6

Unconstrained Bond – Net of Fees 0.65% 2.48% 2.87% 1.96% 1.67% 1.93% 2.05% 3.80% N/A 4.69% 2 6

Bloomberg Barclays U.S. Treasury Bellwether 3-Month 0.57% 1.83% 2.41% 2.00% 1.56% 1.00% 0.74% 0.55% N/A 0.54% N/A N/A

Comparative Annualized Rates of Return

Periods longer than 12 months are annualized.

Fixed Income Composite Performance Summary


For periods ending September 30, 2019

14

Diversity

Our firm directly supports numerous minority organizations in the community

•Our Managing Partner, Gilbert Garcia, serves as a member of the SEC Asset Management Advisory Committee•Our Managing Partner, Gilbert Garcia, serves as a member of the SEC Fixed Income Market Structure Advisory Committee•Our Managing Partner, Gilbert Garcia, serves as trustee on the Dallas Police and Fire Pension System Board of Trustees•Our Managing Partner, Gilbert Garcia, served as Chairman of the Metropolitan Transit Authority of Harris County Board for six years•Our Managing Partner, Gilbert Garcia, was the 2012 Houston Area Urban League Gala Honorary Chair•Our Managing Partner, Gilbert Garcia, was a co-chair of the 103rd NAACP National Convention •Our Managing Partner, Gilbert Garcia, served as a trustee on the Houston Municipal Employees Pension System Board of Trustees•Our Partner and Director of Marketing and Client Services, Ruby Muñoz Dang, served as Trustee for the METRO Texas Non-Union Pension Plan•Our Managing Partner, Gilbert Garcia, was awarded Houston Hispanic Chamber Male Entrepreneur of the Year

Community Service

•National Association of Securities Professionals is a non-profit association of professionals that brings together minorities and women in the fields of asset management, public finance, investment banking, and other finance professions

•Our Partner, Stephanie Roberts, is highly involved with the organization and is currently the Texas chapter Treasurer

NASP

•SEO is a non-profit organization that mentors young women and minority individuals in the development of careers in investment banking, corporate law, and other leading global companies

•Mr. Garcia is the longest serving board member (since 1988), He conducts interviews for candidates in our offices for placement within investment companies in New York

•Mr. Garcia was awarded the SEO Alumni Leadership Award at the 2015 Awards Dinner in New York City; Other honorees included Michael R. Bloomberg, three-term Mayor of New York City and Founder of Bloomberg LP & Bloomberg Philanthropies, and David M. Rubenstein, Co-Founder & Co-CEO of The Carlyle Group

SEO

•The League of United Latin American Citizens is a non-profit organization created to advance the economic condition, educational attainment, political influence, housing, health and civil rights of the Hispanic population of the United States

LULAC

Diversity is a central theme throughout the entire firm •Certified as a MBE in several states •Almost 91% of the firm owned by minority and female partners•61% owned by minority partners and 53% owned by Hispanic partners•85% of employees are ethnic minorities and women•Executed over 60% of brokerage volume with MBE/MWBE/veteran firms over the past several years•We also work with many minority and women-owned vendors in the areas of:•Office Supplies, Temporary Staffing Services, Travel, Accounting, Auditors

•The firm has a summer internship program for minority undergraduate and high school students •We support and promote the LGBT community

GH&A Giving Back

15

Over

Since 2014Donated

$1.3 Million

Performance DisclosureFIXED INCOME – AGGREGATE COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End

Annual Composite Performance Results Standard Deviation (3-yr)* Composite Assets Firm Assets

Gross Composite Total Return

(% US$)

Net Composite Total Return

(% US$)

Bloomberg Barclays

Aggregate Index Return (%)

Composite Dispersion

(%) Composite

(%)

Bloomberg Barclays

Aggregate Index (%)

Number of Portfolios

Composite Assets Period End (US$ mil)

Total Firm Assets Period End (US$ mil)

% of Firm Assets

1992 8.2 7.8 7.4 NM - - 2 35 470 7 1993 10.8 10.4 9.8 NM - - 3 62 741 8 1994 -3.3 -3.8 -2.9 NM - - 3 60 1,079 6 1995 18.8 18.5 18.5 NM - - 4 89 1,490 6 1996 3.3 3.1 3.6 NM - - 3 84 1,785 5 1997 8.9 8.7 9.7 NM - - 3 107 2,219 5 1998 9.8 9.5 8.7 NM - - 3 117 3,543 3 1999 -2.1 -2.3 -0.8 NM - - 4 127 3,893 3 2000 11.8 11.6 11.6 NM - - 3 102 3,704 3 2001 7.9 7.7 8.4 NM - - 3 99 3,496 3 2002 10.4 10.2 10.3 NM - - 3 85 3,280 3 2003 4.1 3.9 4.1 NM - - 3 88 4,628 2 2004 4.9 4.8 4.3 NM - - 4 98 4,710 2 2005 3.8 3.6 2.4 NM - - 4 121 4,152 3 2006 4.2 4.0 4.3 NM - - 4 126 3,025 4 2007 8.6 8.4 7.0 0.1 - - 6 184 2,215 8 2008 5.9 5.7 5.2 0.2 - - 9 248 1,538 16 2009 12.1 11.9 5.9 1.7 - - 16 419 1,939 22 2010 8.2 8.0 6.5 0.4 - - 27 653 2,382 27 2011 5.3 5.1 7.8 0.3 3.5 2.8 42 983 2,704 36 2012 10.5 10.3 4.2 0.2 3.1 2.4 47 1,084 3,227 34 2013 0.1 -0.1 -2.0 0.2 3.4 2.7 59 1,372 3,387 40 2014 8.0 7.8 6.0 0.2 2.8 2.6 111 2,485 4,962 50 2015 0.8 0.7 0.6 0.1 3.2 2.9 146 3,768 6,340 59 2016 3.2 3.0 2.7 0.1 3.3 3.0 168 5,080 8,016 63 2017 3.8 3.6 3.5 0.1 3.1 2.8 185 7,135 10,071 71 2018 1.0 0.8 0.0 0.2 2.5 2.8 205 8,287 12,590 66

*Historical information not required prior to 2011. NM = Not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Source: Barclays Live

The GH&A Fixed Income-Aggregate Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Aggregate investment philosophy utilizes high-quality U.S. investment grade fixed income securities. To help control risk, the portfolios purchase spread product (non-Treasuries) with less than 10-year maturities, 15-year Agency Guaranteed Mortgage-Backed securities and Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The duration exposure is generally managed within a +/- 10% band around the Bloomberg Barclays Aggregate Index.

The composite benchmark is the Bloomberg Barclays Aggregate Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of January 1, 1992, through June 30, 1996, the minimum portfolio size for inclusion in the composite was $1.0 million. Effective July 1, 1996 the minimum for inclusion in the composite was increased to $2.0 million. The composite creation date is October 1, 1999.

Garcia Hamilton & Associates, L.P. (GH&A) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. GH&A has been independently verified for the periods January 1, 1993 through December 31, 2015 by Ashland Partners & Company LLP and from January 1, 2016 through December 31, 2018 by ACA Performance Services, LLC. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis

and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates. GH&A

has chosen not to claim compliance prior January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results. The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. Net of fee results are calculated for the

period of December 31, 1991 through December 31, 1994 by deducting the highest fee of .0375% from the monthly gross composite returns. Since January 1, 1995, the net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.25% of the first $25 million, 0.20% of the next $25 million, 0.18% of the next $50 million, 0.15% of the next $100 million, and 0.12% of the balance. In addition, some clients pay a percentage of annual outperformance of the portfolio versus the benchmark as agreed in the client specific fee schedule. Actual investment advisory fees incurred by clients may vary.

Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Composite dispersion since January 1, 1993, is calculated using an asset value-weighted standard deviation of annual gross returns of those portfolios included in the composite the entire year. Standard deviation is presented as a 3-year annualized standard deviation measure of risk using monthly gross returns as of each annual period end.

Performance DisclosureFIXED INCOME – INTERMEDIATE GOVERNMENT/ CREDIT COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End

Annual Composite Performance Results Standard Deviation (3-yr)** Composite Assets Firm Assets


(% US$)


(% US$)

Bloomberg Barclays Intermediate Gov’t/Credit

Index Return (%)


(%) Composite

(%)

Bloomberg Barclays Intermediate Gov’t/Credit

Index (%) Number of Portfolios



% of Firm Assets

1988* 2.4 2.3 2.3 NM - - 1 30 80 38 1989 15.8 15.2 12.8 NM - - 2 31 157 20 1990 10.3 9.8 9.2 NM - - 5 37 207 18 1991 17.9 17.3 14.7 NM - - 5 66 311 21 1992 7.9 7.4 7.2 0.3 - - 7 85 470 18 1993 11.4 10.9 8.8 NM - - 1 7 741 1 1994 -3.8 -4.3 -1.9 NM - - 4 38 1,079 4 1995 16.7 16.1 15.3 NM - - 3 42 1,490 3 1996 4.0 3.5 4.1 0.1 - - 11 84 1,785 5 1997 7.9 7.4 7.9 0.1 - - 14 289 2,219 13 1998 8.6 8.1 8.4 0.2 - - 15 400 3,543 11 1999 -0.1 -0.6 0.4 0.4 - - 12 284 3,893 7 2000 10.5 9.9 10.1 0.2 - - 11 189 3,704 5 2001 8.7 8.2 9.0 0.3 - - 11 172 3,496 5 2002 9.8 9.3 9.8 0.2 - - 9 154 3,280 5 2003 4.2 3.7 4.3 0.3 - - 12 166 4,628 4 2004 3.9 3.4 3.0 0.2 - - 14 223 4,710 5 2005 2.4 1.9 1.6 0.1 - - 18 294 4,152 7 2006 4.4 4.1 4.1 0.1 - - 18 307 3,025 10 2007 8.3 8.0 7.4 0.1 - - 19 340 2,215 15 2008 5.4 5.1 5.1 0.2 - - 19 269 1,538 17 2009 10.9 10.6 5.2 0.5 - - 28 443 1,939 23 2010 7.3 7.1 5.9 0.2 - - 32 495 2,382 21 2011 3.7 3.4 5.8 0.1 3.5 2.6 34 623 2,704 23 2012 9.6 9.4 3.9 0.2 3.2 2.2 34 651 3,227 20 2013 1.2 1.0 -0.9 0.2 3.3 2.1 32 556 3,387 16 2014 4.7 4.5 3.1 0.2 2.4 1.9 38 774 4,962 16 2015 1.5 1.3 1.1 0.1 2.3 2.1 42 825 6,340 13 2016 3.1 2.9 2.1 0.2 2.4 2.2 48 1,057 8,016 13 2017 2.3 2.1 2.1 0.1 2.2 2.1 51 1,145 10,071 11 2018 1.3 1.1 0.9 0.1 1.9 2.1 57 1,284 12,590 10

*Inception (7/1/88) through 12/31/88. **Historical information not required prior to 2011. NM = Not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Source: Barclays Live

The GH&A Fixed Income-Intermediate Government/Credit Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Intermediate Government/Creditinvestment philosophy utilizes high-quality U.S. investment grade fixed income securities. To help control risk, the portfolios purchase spread product (non-Treasuries) with less than 10-year maturities, 15-year Agency Guaranteed Mortgage-Backedsecurities and Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The duration exposure is generally managed within a +/- 10% band around the Bloomberg Barclays IntermediateGovernment/Credit Index.

The composite benchmark is the Bloomberg Barclays Intermediate Government/Credit Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of July 1, 1988,through June 30, 1996, the minimum portfolio size for inclusion in the composite was $1.0 million. Effective July 1, 1996 the minimum for inclusion in the composite was increased to $2.0 million. The composite creation date is July 1, 1988.

Garcia Hamilton & Associates, L.P. (GH&A) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. GH&A has been independentlyverified for the periods January 1, 1993 through December 31, 2015 by Ashland Partners & Company LLP and from January 1, 2016 through December 31, 2018 by ACA Performance Services, LLC. The verification reports are available upon request.Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance incompliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates. GH&A has chosen not to claim complianceprior January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results.

The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. For the period of July 1, 1988, through December 31, 2005, net of fees resultsare calculated by deducting the highest fee of 0.12% on a quarterly basis from the monthly gross composite returns and for the period of December 31, 2005 through December 31, 2016 by deducting the highest fee of 0.07% on a quarterly basis fromthe monthly gross composite returns. Since January 1, 2010, the net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.25% of the first $25 million, 0.20% of the next $25million, 0.16% of the next $50 million, 0.14% of the next $100 million, and 0.10% of the balance. Actual investment advisory fees incurred by clients may vary.

Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliance presentations are available upon request. Composite dispersion for the period of July 1, 1988, through December 31, 1992, wasan equal-weighted standard deviation. Composite dispersion since January 1, 1993, is calculated using an asset value-weighted standard deviation of annual gross returns of those portfolios included in the composite the entire year. Standard deviationis presented as a 3-year annualized standard deviation measure of risk using monthly gross returns as of each annual period end.

Performance DisclosureFIXED INCOME – SHORT DURATION OPPORTUNISTIC COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End

Annual Composite Performance Results Standard Deviation (3-yr)** Composite Assets Firm Assets

Gross Composite

Total Return (% US$)


(% US$)

Bloomberg Barclays

1-3 Year Gov’t Index Return

(%)


(%) Composite

(%)

Bloomberg Barclays

1-3 Year Gov’t Index (%)



Total Firm Assets

Period End (US$ mil)

% of Firm Assets

2009* 6.4 6.3 1.1 NM - - 1 80 1,939 4 2010 3.2 3.0 2.4 NM - - 2 72 2,382 3 2011 2.5 2.2 1.6 NM - - 2 74 2,704 3 2012 5.2 5.0 0.5 0.1 1.3 0.7 6 196 3,227 6 2013 1.2 1.0 0.4 NM 1.4 0.5 2 27 3,387 1 2014 2.1 1.9 0.6 NM 1.2 0.4 2 27 4,962 1 2015 1.2 1.2 0.6 NM 1.2 0.6 1 1 6,340 <1 2016 2.4 2.3 0.9 NM 1.1 0.8 3 40 8,016 1 2017 1.6 1.4 0.5 NM 1.0 0.8 1 29 10,071 <1 2018 1.6 1.5 1.6 NM 0.7 0.9 4 122 12,590 1

*Inception (4/1/09) through 12/31/09. **Historical information not required prior to 2011. NM = Not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Source: Barclays Live

The GH&A Fixed Income-Short Duration Opportunistic Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Short Duration Opportunistic investment product utilizes high-quality securities. The portfolios generally utilize Treasuries, Federal Agency debentures and Agency-Guaranteed 15-year Mortgage-Backed securities. The portfolios may invest opportunistically in high quality domestic Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The portfolios will generally operate with a duration range of 0.25 to 2.25 years.

The composite benchmark is the Bloomberg Barclays 1-3 Year Government Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of April 1, 2009 to date, the minimum portfolio size for inclusion in the composite was $1.0 million. The composite creation date is January 1, 2010.

Garcia Hamilton & Associates, L.P. (GH&A) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. GH&A has been independently verified for the periods January 1, 1993 through December 31, 2015 by Ashland Partners & Company LLP and from January 1, 2016 through December 31, 2018 by ACA Performance Services, LLC. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates, L.P. GH&A has chosen not to claim compliance prior to January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results.

The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. The net of fees performance results are calculated based on actual fees and include incentive fees that are entered when earned. The management fee schedule for this composite is as follows: 0.16% of the first $25 million, 0.14% of the next $25 million, 0.12% of the next $50 million, 0.11% of the next $100 million, and 0.10% of the balance. In addition, some clients pay a percentage of annual outperformance of the portfolio versus the benchmark as agreed in the client specific fee schedule. Actual investment advisory fees incurred by clients may vary.

Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Composite dispersion is calculated using an asset value-weighted standard deviation of annual gross returns of those portfolios included in the composite the entire year. Standard deviation is presented as a 3-year annualized standard deviation measure of risk using monthly gross returns as of each annual period end.

Performance DisclosureFIXED INCOME – SHORT DURATION GOVERNMENT COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End



(% US$)


(% US$)

Bloomberg Barclays

1-3 Year Gov’t Index Return (%)


(%) Composite

(%)

Bloomberg Barclays

1-3 Year Gov’t Index (%)



Total Firm Assets


% of Firm Assets

2004 2.9 2.7 1.1 NM - - 1 22 4,710 < 1 2005 2.6 2.5 1.7 NM - - 1 42 4,152 < 1 2006 4.6 4.5 4.1 NM - - 1 44 3,025 1 2007 7.1 6.9 7.1 NM - - 1 47 2,215 2 2008 7.3 7.1 6.7 NM - - 1 50 1,538 3 2009 2.3 2.2 1.4 NM - - 1 51 1,939 3 2010 2.8 2.7 2.4 NM - - 1 56 2,382 2 2011 3.3 3.1 1.6 NM 1.2 1.0 1 56 2,704 2 2012 1.5 1.3 0.5 NM 1.0 0.7 1 29 3,227 < 1 2013 0.4 0.3 0.4 NM 0.9 0.5 2 64 3,387 2 2014 1.5 1.4 0.6 NM 0.9 0.4 1 55 4,962 1 2015 1.1 0.9 0.6 NM 1.1 0.6 1 55 6,340 1 2016 1.9 1.8 0.9 NM 1.1 0.8 1 56 8,016 1 2017 1.4 1.3 0.5 NM 1.0 0.8 2 67 10,071 1 2018 1.6 1.5 1.6 NM 0.8 0.9 2 68 12,590 1


The GH&A Fixed Income-Short Duration Government Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Short Duration Government investment philosophy utilizes high-quality U.S. investment grade fixed income securities. To help control risk, the portfolios purchases Treasuries, Federal Agency debentures and Agency-Guaranteed Mortgage-Backed securities. The portfolios do not contain derivatives and do not employ leverage. The portfolios will generally operate within a duration range of 0.25 to 2.25 years.

The composite benchmark is the Bloomberg Barclays 1-3 Year Government Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of January 1, 2004 to date, the minimum portfolio size for inclusion in the composite was $2.0 million. The composite creation date is October 1, 2004.


GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates. GH&A has chosen not to claim compliance prior January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results.

The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. Net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.14% of the first $25 million, 0.12% of the next $25 million, and 0.10% of the balance. Actual investment advisory fees incurred by clients may vary.


Performance DisclosureFIXED INCOME - INTERMEDIATE AGGREGATE COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End



(% US$)


(% US$)

Bloomberg Barclays

Intermediate Aggregate

Index Return (%)


(%) Composite

(%)

Bloomberg Barclays

Intermediate Aggregate Index (%)



Total Firm Assets


% of Firm Assets

2008 5.4 5.1 4.9 NM - - 4 136 1,538 9 2009 11.5 11.2 6.5 NM - - 5 130 1,939 7 2010 7.3 7.0 6.2 0.1 - - 7 201 2,382 8 2011 4.0 3.8 6.0 0.3 3.3 2.3 9 203 2,704 8 2012 8.9 8.6 3.6 0.1 3.0 1.9 11 235 3,227 7 2013 1.1 0.9 -1.0 0.1 3.1 2.0 16 250 3,387 7 2014 5.3 5.1 4.1 0.1 2.4 2.0 16 269 4,962 5 2015 1.7 1.6 1.2 0.1 2.4 2.1 18 267 6,340 4 2016 3.2 3.0 2.0 0.1 2.5 2.1 20 287 8,016 4 2017 2.2 2.0 2.3 0.1 2.3 2.0 22 331 10,071 3 2018 1.6 1.4 0.9 0.1 1.9 2.1 23 379 12,590 3


The GH&A Fixed Income-Intermediate Aggregate Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Intermediate Aggregate investment philosophy utilizes high-quality U.S. investment grade fixed income securities. To help control risk, the portfolios purchase spread product (non-Treasuries) with less than 10-year maturities, 15-year Agency Guaranteed Mortgage-Backed securities and Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The duration exposure is generally managed within a +/- 10% band around the Bloomberg Barclays Intermediate Aggregate Index.

The composite benchmark is the Bloomberg Barclays Intermediate Aggregate Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of January 1, 2008 to date, the minimum portfolio size for inclusion in the composite was $2.0 million. The composite creation date is April 1, 2008.


GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates. GH&A has chosen not to claim compliance prior January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results.

The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. Net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.25% of the first $25 million, 0.20% of the next $25 million, 0.16% of the next $50 million, 0.14% of the next $100 million, and 0.10% of the balance. Actual investment advisory fees incurred by clients may vary.


Performance DisclosureFIXED INCOME – GOVERNMENT/CREDIT COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End



(% US$)


(% US$)

Bloomberg Barclays

Government/Credit Index Return (%)


(%) Composite

(%)

Bloomberg Barclays

Government/Credit Index (%)



Total Firm Assets


% of Firm

Assets 2005 3.0 2.9 2.4 NM - - 1 101 4,152 2 2006 4.0 3.8 3.8 NM - - 2 105 3,025 3 2007 8.4 8.2 7.2 NM - - 2 9 2,215 < 1 2008 6.8 6.5 5.7 NM - - 3 15 1,538 < 1 2009 8.8 8.5 4.5 NM - - 3 15 1,939 < 1 2010 8.1 7.8 6.6 NM - - 2 11 2,382 < 1 2011 6.1 5.9 8.7 NM 3.8 3.4 2 13 2,704 < 1 2012 11.5 11.2 4.8 NM 3.4 3.0 2 14 3,227 < 1 2013 -0.2 -0.5 -2.4 NM 3.7 3.2 2 12 3,387 < 1 2014 8.5 8.2 6.0 NM 3.2 3.0 1 6 4,962 < 1 2015 0.8 0.6 0.2 NM 3.6 3.3 3 93 6,340 1 2016 3.0 2.8 3.1 NM 3.8 3.5 4 138 8,016 2 2017 4.2 4.0 4.0 NM 3.6 3.3 5 145 10,071 1 2018 0.6 0.4 -0.4 NM 3.0 3.2 5 163 12,590 1


The GH&A Fixed Income-Government/Credit Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income- Government/Credit investment philosophy utilizes high-quality U.S. investment grade fixed income securities. To help control risk, the portfolios purchase spread product (non-Treasuries) with less than 10-year maturities, 15-year Agency Guaranteed Mortgage-Backed securities and Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The duration exposure is generally managed within a +/- 10% band around the Bloomberg Barclays Government/Credit Index.

The composite benchmark is the Bloomberg Barclays Government/Credit Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the product. For the period of January 1, 2005 to date, the minimum portfolio size for inclusion in the composite was $2.0 million. The composite creation date is April 1, 2006.



The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. The net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.25% of the first $25 million, 0.20% of the next $25 million, 0.18% of the next $50 million, 0.15% of the next $100 million, and 0.12% of the balance. Actual investment advisory fees incurred by clients may vary.


Performance DisclosureFIXED INCOME – SHORT DURATION GOVERNMENT/CREDIT COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End

Annual Composite Performance Results Standard Deviation (3-yr)** Composite Assets Firm Assets Gross Composite



(% US$)

Bloomberg Barclays 1-3 Year Gov’t/Credit

Index Return (%)


(%) Composite

(%)

Bloomberg Barclays 1-3 Year Gov’t/Credit

Index (%) Number of Portfolios



% of Firm

Assets 2013* 0.6 0.6 0.2 NM - - 3 92 3,387 3

2014 2.0 1.9 0.8 NM - - 1 72 4,962 1 2015 1.1 1.1 0.7 NM - - 2 98 6,340 2 2016 2.6 2.5 1.3 NM 1.1 0.8 1 165 8,016 2 2017 1.6 1.6 0.8 NM 1.0 0.7 3 286 10,071 3 2018 1.8 1.7 1.6 NM 0.7 0.8 4 396 12,590 3

*Inception (10/1/13) through 12/31/13. NM = Not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Source: Barclays Live

The GH&A Fixed Income-Short Duration Government/Credit Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. TheFixed Income- Short Duration Government/Credit investment product will generally invest in high quality securities such as U.S. Treasuries, Agency debentures, 15-year Agency Guaranteed Mortgage-Backedsecurities and Corporate Bonds rated a minimum of single “A”. The portfolios do not contain derivatives and do not employ leverage. The portfolios will generally operate within a duration range of 0.25 to 2.25years.

The composite benchmark is the Bloomberg Barclays Capital 1-3 Year Government/Credit Index. The benchmark is used for comparative purposes only and generally reflects the risk or investment style ofthe product. The minimum portfolio size for inclusion in the composite is $2.0 million. The composite creation date is January 1, 2014.

Garcia Hamilton & Associates, L.P. (GH&A) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards.GH&A has been independently verified for the periods January 1, 1993 through December 31, 2015 by Ashland Partners & Company LLP and from January 1, 2016 through December 31, 2018 by ACAPerformance Services, LLC. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards ona firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specificcomposite presentation.

GH&A is defined as an independent investment management firm registered under the Investment Advisers Act of 1940 and prior to June 30, 2010, was known as Davis Hamilton Jackson & Associates, L.P.GH&A has chosen not to claim compliance prior to January 1, 1993. A complete list and description of firm composites is available upon request. Past performance is no guarantee of future results.

The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. The net of fees performance results arecalculated based on actual fees. The management fee schedule for this composite is as follows: 0.16% of the first $25 million, 0.14% of the next $25 million, 0.12% of the next $50 million, 0.11% of the next $100million, and 0.10% of the balance. Actual investment advisory fees incurred by clients may vary.

Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Composite dispersion is calculated using an asset value-weighted standard deviation of annual gross returns of those portfolios included in the composite the entire year. The 3 year annualized standard deviation will be shown beginning December 31, 2016 when 36 months of composite performance is available.

Performance DisclosureFIXED INCOME – UNCONSTRAINED BOND COMPOSITE (Disclosure Presentation as of December 31, 2018) Garcia Hamilton & Associates, L.P.

Year End

Annual Composite Performance Results Standard Deviation (3-yr) Composite Assets Firm Assets

Gross Composite



(% US$)

Bloomberg Barclays

UST Bellwether 3-Month

Index Return (%)


(%) Composite

(%)

Bloomberg Barclays

UST Bellwether 3-Month

Index (%)


Composite Assets


Total Firm Assets


% of Firm

Assets 2009* 13.4 13.1 0.2 NM - - 2 2 1,939 < 1

2010 8.3 8.0 0.2 NM - - 2 3 2,382 < 1 2011 4.1 3.9 0.1 NM - - 2 3 2,704 < 1 2012 12.6 12.3 0.1 NM 4.1 0.0 2 3 3,227 < 1 2013 1.3 1.1 0.1 NM 4.1 0.0 2 3 3,387 < 1 2014 3.2 2.8 0.1 NM 2.9 0.0 2 5 4,962 < 1 2015 1.3 1.1 0.1 NM 2.2 0.0 2 5 6,340 < 1 2016 3.1 2.8 0.4 NM 1.6 0.1 2 5 8,016 < 1 2017 1.6 1.3 0.9 NM 1.5 0.1 2 5 10,071 <1 2018 1.5 1.3 1.9 NM 0.9 0.2 2 5 12,590 <1

*Inception (4/1/09) through 4/30/09. NM = Not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. Source: Barclays Live

The GH&A Fixed Income Unconstrained Bond Composite is comprised only of fully discretionary, fee paying portfolios, including those portfolios no longer with the firm. The Fixed Income Unconstrained Bond investment philosophy will generally invest in high quality securities such as U.S. Treasuries, Agency Debentures, Agency Guaranteed Mortgage-Backed securities, and Investment Grade Corporate Bonds. The Unconstrained Bond product utilizes a domestic fixed income strategy that has the flexibility to adapt to changing markets without sector or duration constraints while maintaining a high quality focus. The flexibility to adapt to changing market conditions without limitation to the constraints of a specific index may result from time to time in the concentration of one or more sectors. The portfolios do not contain derivatives and do not employ leverage.

The Bloomberg Barclays U.S. Treasury Bellwether 3-Month Index, a cash proxy, is provided for comparison purposes. The composite is not managed against an Index. The minimum portfolio size for inclusion in the composite is $500 thousand. The composite creation date is January 1, 2014.



The U.S. dollar is the currency used to express performance. Returns presented above are gross and net of management fees and include the reinvestment of all income. The net of fees performance results are calculated based on actual fees. The management fee schedule for this composite is as follows: 0.25% of the first $25 million, 0.20% of the next $25 million, 0.16% of the next $50 million, 0.14% of the next $100 million, and 0.10% of the balance. Actual investment advisory fees incurred by clients may vary.


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