Fresno City Retirement Systems 1-24-2018


Fixed Income Analysis November 2017

Northern Trust Monthly Asset Allocation Overview November 30 and December 31, 2017

Northern Trust Monthly Portfolio Performance Reports as of Nov 30 and Dec 31, 2017

Acadian Perspectives The Emerging Opportunity in China A-Shares White Paper January 2018

PCCP-AMP Capital Announcement

Investment Manager Monitoring and Evaluation Review Market Update – November 30, 2017

China A Shares

On-Site Due Diligence Report on Monroe Capital (Direct Lending) and Heitman (REIT)

Review, Discussion and Consideration of PCCP, LLC Value Add RE Fund

Reports on Asset Allocation

NEPC PE Concept and Framework

Presentation on Cliffwater Private Assets Advisory Services

Adams Street Partners Customized SMA Presentation

San Francisco Employee Retirement System 1-24-2018 Special Board Meeting








ERFC Real Assets Strategic Plan

All commentary below is property of NEPC
NEPC’s Real Estate General Market Thoughts and 2017 Implementation Views
Core/REIT market environment normalized

– Real estate fundamentals (rent growth, occupancy, net absorption) remain strong; however, valuations are high on an absolute and relative basis

– Rising interest rates have been baked into existing valuations but excess cap rate expansion (beyond general expectations) will reset valuations

– REIT sector has been volatile and remain at historically high FFO multiples

• Opportunity remains in non-core strategies

– In the US, we favor managers that are attentive to duration risk at the current stage of the expansion cycle, are focused on cash flow, and may have niche areas of expertise

– Outside the US, Europe remains a relatively attractive opportunity for asset focused managers who are not making macro bets on growth. Current US-dollar denominated investors with currency exposure will feel near-term impact of Brexit, but new investors may benefit from strong US-dollar amidst asset repricing in select cities (e.g. London). Long-term Brexit implications, however, remain unclear.

Strategy Outlook Commentary


Private – 0

Hold to target allocation; focus on quality managers/portfolios in primary locations that should better navigate a downturn

Public REITs – 0

Hold to target allocation; if under-allocated leg into a target allocation to minimize entry point risk; expect high volatility in the near term


Value-Add + & Opportunistic +

Flight to quality will continue to favor US real estate, while opportunities to capitalize on distress or capital markets inefficiencies in Europe and select emerging markets will remain; emphasize more defensible demographically driven sectors vs. GDP driven sectors and watch for “emerging institutional” asset classes with high cash yields

Real Estate Debt +-

Low interest rate environment is challenging for senior loans but mezzanine strategies can offer favorable terms with downside protection