fixed income management - garcia hamilton & associates · 2018-08-17 · fixed income...

Fixed Income ManagementQuarter Ended June 30, 2018

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

Organization

1

Asset Breakdown

Founded in 1988. Firm is 100% employee-owned and certified as a MBE firm. Firm has 32 employees located in Houston, Texas. The 10 members of the fixed income investment team have over 200 years combined investment experience

and 75 years combined with the firm. In addition, 4 are Chartered Financial Analyst (CFA) charterholders. Firm manages approximately $10.5 billion in assets under management. High quality fixed income strategies designed to prevent “negative surprises.” No litigation. No debt.

Data as of June 30, 2018

Other1%

Mutual Fund7%

Corp Retirement6%

Insurance3%

Corp Non-Erisa9%

Endowment/Foundation

6%Jointly Trusteed

4%

Public64%

By Client

Fixed Income Aggregate

72%

Fixed Income Short Duration

1%

Fixed Income Intermediate Govt/Credit

12%

Fixed Income Enhanced Cash

4%Fixed Income Intermediate Aggregate

4%Other Fixed

Income Products 7%

By Type

Partners

2

RUBY MUÑOZ DANGDirector of Marketing and Client ServicesBA: University of HoustonYear Hired: 1995Industry Experience: 25 yrsOwnership: 5.5%

STEPHANIE J. ROBERTSMarketing and Client ServicesBBA: Texas Southern UniversityYear Hired: 2000Industry Experience: 22 yrsOwnership: 4.5%

JANNA HAMILTONMarketing and Client ServicesBA: Florida Atlantic UniversityAIMSE: Wharton School of BusinessYear Hired: 1994Industry Experience: 38 yrsOwnership: 22.5%

GILBERT ANDREW GARCIA, CFAManaging PartnerPortfolio ManagerBA: Yale UniversityYear Hired: 2002Industry Experience: 33 yrsOwnership: 44.5%

KAREN H. TASS, CFAPortfolio ManagerBA: Texas A&M UniversityMBA: University of HoustonYear Hired: 2010Industry Experience: 13 yrsOwnership: 3.5%

BETH L. MCWILLIAMSChief Compliance OfficerPatricia Stevens Secretarial CollegeYear Hired: 1994Industry Experience: 37 yrsOwnership: 6%

KEVIN LUNDAY, CPAChief Operating OfficerBBA: Texas Tech UniversityYear Hired: 2007Industry Experience: 17 yrsOwnership: 8%

JEFFREY D. DETWILER,CFA, AAMSPortfolio ManagerBS: University of South FloridaMS: University of HoustonYear Hired: 2007Industry Experience: 22 yrsOwnership: 1%

NANCY RODRIGUEZPortfolio ManagerBS: University of HoustonYear Hired: 1998Industry Experience: 31 yrsOwnership: 4.5%

Fixed Income Investment Team

3

GILBERT ANDREW GARCIA, CFAManaging PartnerPortfolio ManagerBA: Yale UniversityYear Hired: 2002Industry Experience: 33 yrs

KAREN H. TASS, CFAPartnerPortfolio ManagerBA: Texas A&M UniversityMBA: University of HoustonYear Hired: 2010Industry Experience: 13 yrsCoverage: Corporates

JEFFREY D. DETWILER, CFA, AAMSPartnerPortfolio ManagerBS: University of South FloridaMS: University of HoustonYear Hired: 2007Industry Experience: 22 yrsCoverage: Short Term

BENJAMIN D. MONKIEWICZPortfolio ManagerBA: Sam Houston State UniversityYear Hired: 2010Industry Experience: 8 yrsCoverage: MBS/Agencies

REESE WELLERInvestment AnalystBA: Texas Tech University Year Hired: 2017Industry Experience: 18 yrs

KELLY NILAND, CFA, CPAInvestment AnalystBBA: Texas A&M UniversityYear Hired: 2015Industry Experience: 34 yrsCoverage: Analytics

YVETTE M. DUEÑASInvestment Analyst BBA: University of Incarnate Word MBA: Our Lady of the Lake University Year Hired: 2016Industry Experience: 11 yrs

CONNIE FALCON DAVISInvestment AssociateBS: University of HoustonYear Hired: 2012Industry Experience: 6 yrsCoverage: Analytics

DON ELSENBROCKPortfolio Manager/ StrategistBS: University of HoustonMA: University of HoustonYear Hired: 2014Industry Experience: 26 yrsCoverage: Strategist/ Short Term

NANCY RODRIGUEZPartnerPortfolio ManagerBS: University of HoustonYear Hired: 1998Industry Experience: 31 yrsCoverage: Team Oversight

Other Team Leaders

REGINA PERKINSOperations ManagerSan Antonio Community College Year Hired: 2003Industry Experience: 15 yrs

GARY MONTGOMERYIT Systems AdministratorBA: University of Houston Year Hired: 2007Industry Experience: 16 yrs

MORGAN DOYLEClient Relations Manager BS: University of TexasYear Hired: 2014Industry Experience: 4 yrs

JASON SIMPSONMarketing AssociateBA: Texas Tech University Year Hired: 2017Industry Experience: 11 yrs

BRIAN SIMON Marketing AssociateBA: Morehouse CollegeMBA: University of Houston-Victoria Year Hired: 2003-2007, 2018Industry Experience: 20 yrs

4

Public Funds Illinois State Board of Investments, IL Republic of Palau COFA Trust Fund Archdiocese of Portland, OR Rollins, Inc., GA Tallahassee Memorial HealthCare City of Annapolis Police and Fire, MD Illinois Student Assistance Commission, IL River Forest Police, IL Attorney’s Liability Assurance Society, IL Roman Catholic Archdiocese of Atlanta, GA Foundation, FLAddison Police, IL Jackson County GE, MI City of Riviera Beach Police, FL Baptist Health Assets, AR RPC, Inc., GA United Methodist Foundation, NC

Arkansas State Highway Employees, AR City of Jacksonville Beach ERS, FL Road Commission for Oakland County, MI Bethesda Inc., OH STP Nuclear Operation Company, TX University of Guam Endowment, GUArkansas Local Police & Fire, AR City of Lake Worth FF, FL Retiree Health Care Trust, MI Brazosport Regional Health System, TX Sulzer Pumps (US) Inc., TX University of Hartford, CT

Buffalo Grove Police, IL City of Lakeland, FL City of Roanoke, VA Catholic Education of North Georgia, GA University Athletic Association, GA White’s Residential & Family Services, IN City of Atlanta GE, GA Lantana FF, FL City of Rockledge Police, GE & FF, FL Century Insurance Company, GU Wichita Falls Area Community Foundation,

City of Atlanta Police & Fire, GA Lantana Police Relief, FL City of Sanford FF, FL City Public Service Decommissioning Endowments/Foundations TXTown of Bay Harbor Islands GE, FL Lemont Police, IL City of Sanford Police, FL Energy Trust, TX Arkansas State University Foundation, ARCity of Bloomington Police, IL Macon-Bibb County, GA City of Sarasota Police, FL City Public Service Decommissioning Arkansas Tech University Foundation, AR Taft – Hartley & Union

City of Boynton Beach GE, FL Marianas Public Land Trust, MP City of Sebring Police, FL TCC Trust, TX Baptist Health Foundation of Bricklayers Gulf Coast, TX

City of Cape Coral Police & FF, FL Medford Retirement System, MA City of St. Cloud Police & GE, FL Crime Stoppers of Houston, TX San Antonio, TX Bricklayers of Indiana, INChicago Public Schools, IL Metropolitan Water Reclamation City of St. Louis FF, MO District of Columbia Bar, DC Board of Higher Education and Ministry, District 1199J New Jersey Healthcare

Chicago Transit Authority, IL District, IL St. Petersburg Police, FL FSM Development Bank, FM The United Methodist Church, TN Employers, NJCollege of Micronesia Land Grant, FM City of Melbourne Police & FF, FL South Walton Fire Control District FF, FL John P. McGovern Museum of Health & The Boyd and Joan Kelley Charitable IBEW Local Union #129, OH City of Coral Springs FF, FL Miami GE' & Sanitation ERS, FL State Universities RS, IL Medical Science, TX Foundation, TX IBEW Local Union #351, NJ

City of Coral Springs Police, FL City of Miramar Police, FL City of Sunrise Police, FL KEW Management Investor, NY Briarwood-Brookwood, Inc., TX MARTA/ATU Local 732, GA

City of Corpus Christi FF, TX Municipality Of Anchorage, AK City of Tamarac FF, FL Maryland Insurance Trust, MD Caribbean Biodiversity Fund, UK Palm Tran, Inc./ATU Local 1577, GACook County Employees' & Officers' MWRA Employees' RS, MA City of Tarpon Springs Police, FL The Medical Foundation of North Catholic Community Foundation of Plumbers Local #68, TX

Annuity & Benefit, IL NC Association of County Teachers’ Retirement System, IL Carolina, NC Minnesota, MN Sacramento Area Electrical Workers, CA

Dallas Area Rapid Transit, TX Commissioners, NC City of Temple Terrace Police & FF, FL Micronesia Conservation Trust, FM Catholic Foundation of Oklahoma, OK San Mateo HERE, CADFW International Airport, TX NC League of Municipalities, NC City of Taylor GE Retirement System, MI Operators Reinsurance Company, CI Children's Home Foundation, TX Service Employees International Union

Town of Davie Police, FL City of New Port Richey Police, FL Village of Tequesta Public Safety Oregon Climate Trust, OR Children’s Home Society of Florida, FL Health And Welfare Fund, DCTown of Davie FF, FL City of North Miami Beach GE, FL Officers, FL Pacific Indemnity Insurance Company, GU E. Rhodes and Leona B. Carpenter Southern California Sheet Metal Workers,

City of DeLand Police, FL City of North Miami Beach Police & FF, FL City of Titusville Police & FF, FL Pheasants Forever, MN Foundation, PA CADelray Beach Police, FF & GE, FL City of North Miami GE, FL Utrik Atoll, Marshall Islands (MH) Roman Catholic Archdiocese of Atlanta, GA Embry Riddle Aeronautical University, FL Teamsters Union Local NO. 35, NJCity of Deerfield Beach Police, FL City of North Miami Police, FL City of Venice FF, FL Russell Hill Rogers Fund for the Arts, TX Florida A&M University Foundation, FL WMATA/ Local 922 Retirement Plan, DC

City of Deerfield Beach FF, FL City of North Port Police, FL City of Venice Police, FL Specialty Equipment Market Assoc., CA Fort Hays State University, KS

Dukes County, MA Northern Marianas College, MP City of Vero Beach Police, FL Stetson University, Inc., FL Gilbert Family Foundation, MI OtherEl Paso County Retirement, CO City of Oakland Park Police & FF, FL City of West Melbourne Police, FL Strategic Investment Fund for La Raza, DC Greater Milwaukee Foundation, MI American Beacon Garcia Hamilton Quality

Employees of H.N.S. Management, CT City of Ocoee Police & FF, FL City of West Palm Beach Police, FL St. Ignatius College Prep, IL Guam Community College Foundation, GU Bond Fund (Mutal Fund), TXERS of Baltimore County, MD Oklahoma FF, OK City of West Palm Beach GE, FL Sweeny Community Hospital, TX Hartford Foundation for Public Giving, CT Bivium Capital Partners, LLC, CAERF of the City of Dallas, TX Town of Orange Park Police, FL City of West Palm Beach FF, FL Takecare Insurance Risk Management Heartspring Methodist Foundation, TX Progress Investment Management, CA

Englewood FF, FL City of Ormond Beach Police, GE & FF, FL City of Wilton Manors Police & GE, FL Services, GU International Retinal Research

City of Evanston Police, IL City of Palm Beach Gardens FF, FL City of Winston-Salem, NC Terrapin Insurance Company, CI Foundation Inc., ALFairfax County Uniformed RS, VA Palm Beach County FF, FL City of Winter Garden GE, Police & FF, FL The Walters Art Gallery, MD Louisiana Baptist Foundation, LA

FSM Social Security Administration, FM Village of Palm Springs Police & GE, FL City of Winter Haven Police, FL University Athletic Association, Inc., GA Marin Community Foundation, CA

City of Ft. Lauderdale GE, FL City of Pembroke Pines OPEB Trust, FL Yap State Trust Fund, FM United Regional Health Care System, TX Medical University of South Carolina City of Ft. Lauderdale, FL City of Pensacola GE & FF, FL Yorktown Independent School District, TX Foundation, SC City of Ft. Walton Beach GE, FL City of Pinellas Park Police & GE, FL Corporate ERISA Midwestern State University Foundation,

City of Ft. Walton Beach Police, FL Philadelphia Gas Works, PA Corporate Non-ERISA Baptist Health Retirement Plan, AR TXCity of Ft. Walton Beach FF, FL City of Plantation Police, FL Air Force Association, VA D.W. McMillan Hospital/ Escambia San Francisco Foundation, CA

Government of Guam, GU City of Pontiac Police & FF, MI American Baptist Home Mission County Healthcare, AL Sarah Campbell Blaffer Foundation, TXGreater Orlando Aviation Authority, FL Prince George’s County Police & FF, MD Society, PA Flowers Foods, Inc., GA Shelby County Community Health

City of Hialeah FF, FL Prince William County Police, VA American Speech-Language-Hearing Integris Health, Inc., OK Foundation, ALCity of Hollywood FF, FL City of Punta Gorda Police & GE, FL Association, MD Millers Group, TX Silicon Valley Community Foundation, CACity of Hollywood Police, FL Rantoul Police, IL American Quarter Horse Association, TX Nissan Motor Co., Ltd., TN Southern Baptist Foundation, TN

Republic of Palau Civil Service AOA Deposit and Loan Fund, GA Operators Reinsurance Company, KY

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 GoalOur 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

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%

*Our duration normally is in this range. In rare, extreme market environments, this range can be broader.

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 0.50% -0.08% 1.34% 0.72% 2.84% 3.48% 4.06% 5.52% 5.22% 6.23%

GH&A Net of Fees 0.46% -0.17% 1.16% 0.54% 2.66% 3.29% 3.86% 5.32% 5.03% 5.99%

Bloomberg Barclays Aggregate -0.16% -1.62% -0.40% -0.36% 1.72% 2.27% 2.57% 3.72% 3.76% 5.38%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

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

Preliminary

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.

Preliminary

Comparative Annualized Rates of Return For periods ending June 30, 2018Preliminary

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%

Dec-06 Mar-08 Jun-09 Sep-10 Dec-11 Mar-13 Jun-14 Sep-15 Dec-16 Mar-18

Cash

MBS

Agcy

Trsy

Corp

10

Fixed Income Aggregate Historical Sector Weightings

We were underweight corporates as we saw no value

Started addingcorporatesafter 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

June 30, 2018

Increased corporates significantly because of historically widespreads/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 0.40% -0.12% 0.49% 0.45% 2.06% 2.79% 3.27% 4.69% 4.51% 6.57%

GH&A Net of Fees 0.35% -0.22% 0.29% 0.24% 1.85% 2.57% 3.04% 4.44% 4.21% 6.17%

Bloomberg Barclays Int. Gov/Credit 0.01% -0.97% -0.58% -0.40% 1.15% 1.60% 1.94% 3.07% 3.21% 5.60%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

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

Preliminary


Preliminary

Comparative Annualized Rates of Return For periods ending June 30, 2018Preliminary



Fixed Income Short Duration Oppt. Composite Returns

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

GH&A Gross of Fees 0.42% 0.62% 1.03% 1.12% 1.66% 1.92% 2.12% 2.83%

GH&A Net of Fees 0.38% 0.55% 0.88% 0.97% 1.55% 1.79% 1.96% 2.67%

Bloomberg Barclays 1-3 Year Govt. 0.21% 0.06% 0.03% -0.02% 0.42% 0.59% 0.59% 0.92%

-1%

0%

1%

2%

3%

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

Preliminary

PreliminaryPreliminary




Comparative Annualized Rates of Return For periods ending June 30, 2018

Fixed Income Aggregate Portfolio Characteristics

PortfolioBloomberg Barclays Aggregate

June 30, 2018

13

Treasuries41%

Corporates34%

Agencies11%

Mortgages11%

Cash3%

Average YTM Average Coupon Average DurationPortfolio 2.6 3.1 4.2Bloomberg Barclays Aggregate 3.3 3.1 5.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Treasuries38%

Corporates25%

Agencies7%

Mortgages28%

Asset-Backed

2%

Source: Barclays LiveThe characteristics shown are those of an actual portfolio that is representative of this strategy at a particular point in time. Individual portfolio characteristics may vary depending on the date shown as well as client-imposed restrictions, cash flows, etc. This information is supplemental to the Fixed Income Aggregate Composite Disclosure Statement in the Appendix.

14

QTD YTD 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years Inception to Date

#Portfolios

Assets in Millions

Short Duration Government – Gross of Fees*Inception December 2003 0.41% 0.62% 1.04% 0.92% 1.42% 1.44% 1.39% 2.14% 2.83% 3 114

Short Duration Government – Net of Fees 0.38% 0.55% 0.91% 0.79% 1.29% 1.31% 1.26% 2.01% 2.69% 3 114

Bloomberg Barclays 1-3 Year Govt. 0.21% 0.06% 0.03% -0.02% 0.42% 0.59% 0.59% 1.32% 2.01% N/A N/A

Intermediate Aggregate – Gross of Fees*Inception December 2007 0.49% 0.00% 0.53% 0.57% 2.15% 2.95% 3.31% 4.78% 4.77% 23 361

Intermediate Aggregate – Net of Fees 0.44% -0.11% 0.33% 0.37% 1.94% 2.75% 3.10% 4.55% 4.54% 23 361

Bloomberg Barclays Intermediate Aggregate 0.09% -0.97% -0.32% -0.24% 1.27% 1.83% 2.03% 3.29% 3.26% N/A N/A

Government /Credit – Gross of Fees*Inception December 2004 0.45% -0.42% 1.14% 0.31% 2.83% 3.53% 4.31% 5.46% 5.31% 5 147

Government /Credit – Net of Fees 0.41% -0.52% 0.94% 0.11% 2.64% 3.32% 4.08% 5.21% 5.08% 5 147

Bloomberg Barclays Govt./Credit -0.33% -1.90% -0.63% -0.52% 1.83% 2.29% 2.77% 3.77% 3.85% N/A N/A

Short Duration Govt./Credit – Gross of Fees*Inception September 2013 0.45% 0.68% 1.18% 1.28% 1.78% N/A N/A N/A 1.83% 5 348

Short Duration Govt./Credit – Net of Fees 0.43% 0.63% 1.11% 1.20% 1.70% N/A N/A N/A 1.75% 5 348

Bloomberg Barclays 1-3 Year Govt./Credit 0.28% 0.08% 0.21% 0.28% 0.71% N/A N/A N/A 0.80% N/A N/A

Unconstrained Bond – Gross of Fees*Inception March 2009 0.44% 0.64% 1.18% 1.24% 2.01% 2.43% 3.49% N/A 5.25% 2 5

Unconstrained Bond – Net of Fees 0.38% 0.53% 0.93% 0.99% 1.75% 2.16% 3.22% N/A 4.97% 2 5

Bloomberg Barclays U.S. Treasury Bellwether 3-Month 0.45% 0.81% 1.37% 0.94% 0.69% 0.44% 0.34% N/A 0.30% N/A N/A

Comparative Annualized Rates of Return – Preliminary

Periods longer than 12 months are annualized.

Fixed Income Composite Performance Summary


For periods ending June 30, 2018

15

Diversity

Our firm directly supports numerous minority organizations in the community

•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

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 recently started the Texas chapter

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•59% owned by minority partners and 55% owned by Hispanic partners•84% 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

GH&A Giving Back

16

Over

Since 2014Donated

$980,000

Why Hire Garcia Hamilton & Associates?

100% Employee Owned

High Quality Focus

No Big Surprises

Flexibility

Proven Investment Process Over Time

Risk Controls

Strong Focus on Client Service

17

Performance DisclosureFIXED INCOME – AGGREGATE COMPOSITE (Disclosure Presentation as of December 31, 2017) 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

*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, 2016 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. 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, 2017) 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


Total Firm Assets

Period End (US$ mil)

% 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

*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 Composite is comprised only of fully discretionary, fee paying institutional portfolios, including those portfolios no longer with the firm. The Fixed Income-Intermediate 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 Government/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.



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 results are 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 from the 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 $25million, 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.

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, was an 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 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 OPPORTUNISTIC COMPOSITE (Disclosure Presentation as of December 31, 2017) 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


% 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

*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 managed with an overall duration exposure roughly equal to the duration of the Bloomberg Barclays 1-3 Year Government Index. 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 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.


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, 2017) 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


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 purchase Treasuries, Federal Agency debentures and Agency-Guaranteed Mortgage-Backed securities. The portfolios do not contain derivatives and do not employ leverage. The duration exposure is generally managed equal to the duration of the Bloomberg Barclays 1-3 Year Government Index.

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.



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, 2017) 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


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.



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, 2017) 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


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 Disclosure

Performance DisclosureFIXED INCOME – UNCONSTRAINED BOND COMPOSITE (Disclosure Presentation as of December 31, 2017) 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

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

*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.


fixed income management - garcia hamilton & associates · 2018-08-17 · fixed income...

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