Core Fixed Income

Composite Performance (%)

  • LCP Core Fixed Income (Gross of fees)
  • LCP Core Fixed Income (Net of fees)
  • Bloomberg Barclays Aggregate Bond Index
Performance Disclosures

Logan Circle Partners, L.P. (“Logan Circle” or the “Firm”) is a registered investment adviser and began managing assets on November 1, 2007. On September 15, 2017 the Firm became a wholly owned subsidiary of MetLife, Inc. and is part of MetLife Investment Management, MetLife, Inc.’s institutional investment management business. From April 16, 2010 to September 15, 2017, the Firm was a subsidiary of Fortress Investment Group LLC. The Firm continues to operate as Logan Circle Partners, L.P. Additionally, on December 19, 2011, the Firm formed a new subsidiary, Logan Circle Partners I LLC, which is a wholly-owned entity of the Firm. The Firm is defined to include all accounts managed by Logan Circle Partners, L.P. and Logan Circle Partners I LLC. The track record presented represents the team’s performance at Delaware Investments while it managed the Core Focus strategy from October 1, 2000 (“inception date”) through October 31, 2007. From November 1, 2007 (“creation date”) to the present, the performance presented is for the Logan Circle Core Fixed Income (“Core”) composite that the investment team currently manages at Logan Circle.

Logan Circle claims compliance with the Global Investment Performance Standards (“GIPS®”) and has prepared and presented this report in compliance with the GIPS® standards. Logan Circle has been independently verified for the periods November 1, 2007 to December 31, 2017. 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. The Core composite has been examined for the periods November 1, 2007 to December 31, 2017. Verification does not ensure the accuracy of any specific composite presentation. The verification and performance examination reports are available upon request.

The Core strategy seeks to produce risk adjusted long-term total returns above the broad bond market by investing in a core of high quality U.S. fixed income securities across the government, corporate and structured markets. The Core composite includes all fee-paying portfolios managed on a discretionary basis according to the applicable composite strategy except as otherwise excluded herein. The Firm maintains these policies and a complete list and description of composites which are available upon request. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.

The Core composite had a significant cash flow policy which was applied consistently and within GIPS® standards. This policy was first effective from November 1, 2007 and was first removed on October 1, 2010. It was reinstated as of May 1, 2011 and then removed on May 1, 2013. The Firm chose to remove accounts that had a significant monthly external aggregate cash flow greater than 10%. Aggregate cash flow was defined as additions plus withdrawals over the monthly period. If the significant cash flow was client directed requiring security liquidation that materially affects account management, the Firm would remove the account the month of security liquidations. The account would be reinstated to the composite once the portfolio manager determined the flow had not impacted the management of the account and the account was invested per the strategy. Additional information regarding the treatment of significant cash flows is available upon request.

The performance benchmark for the Core composite is the Bloomberg Barclays Aggregate Bond Index, which is a broad based index that measures the investment grade, U.S. dollar denominated, fixed rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed rate and hybrid ARM pass-throughs), ABS, and CMBS. All index returns presented are provided to represent the investment environment existing during the time periods shown and will not be covered by the future report of independent verifiers. For comparison purposes, the index is fully invested and includes the reinvestment of income. The index is unmanaged and includes the reinvestment of interest and does not reflect transaction costs or management fees and other expenses. Investors cannot purchase interests directly in an index.

Returns are based on fully discretionary accounts under management and may include terminated accounts. The dispersion of annual returns is measured by the standard deviation among asset-weighted portfolio returns represented within the composite for the full year. Dispersion is not calculated for composites with five or fewer accounts for the whole period.

Performance returns are presented gross and net of fees, include the reinvestment of all income and are calculated in U.S. dollars. Dividend income has been recorded net of all applicable foreign withholding taxes. Returns calculated gross of fees do not reflect the deduction of our investment management fees. Individual client returns will be reduced by investment management fees and other expenses that the account may incur. The investment management fee schedule for the Core strategy is 0.30% on the first $25 million, 0.25% on amounts from $25 million to $100 million and 0.20% on amounts over $100 million. Net returns have been calculated by reducing the monthly gross returns by the highest stated ADV fee of 0.30%. Fees have a compounding effect on cumulative results. Investment management fees are described in Part 2A of the Firm’s Form ADV. Actual investment management fees incurred by clients may vary.

Derivatives may make up a part of the Core strategy, as the Firm believes that derivatives offer value and are appropriate investments for client mandates. The Firm may utilize futures, forwards and interest rate swaps to assist in the management of our portfolios. The Firm utilizes derivatives in its efforts to achieve the appropriate level of risk to meet the return targets, rather than for speculative purposes.

Past performance is not indicative of future results. The information presented is only available for institutional client use and is presented for use only as a one-on-one presentation.

Composite Statistics and Performance:

10/1/2000 (Inception) to 12/31/2000 4.93% 4.83% 4.21% 11 0.18% N/A N/A $311,636,295 -
2001 8.95% 8.63% 8.42% 8 0.68% N/A N/A $307,719,234 -
2002 10.08% 9.75% 10.27% 9 0.60% N/A N/A $332,200,422 -
2003 6.66% 6.34% 4.11% 16 0.76% N/A N/A $505,550,898 -
2004 5.13% 4.82% 4.35% 26 0.19% N/A N/A $1,214,690,567 -
2005 2.92% 2.61% 2.43% 23 0.12% N/A N/A $1,660,849,108 -
2006 4.95% 4.64% 4.33% 24 0.14% N/A N/A $2,255,155,136 -
2007 4.95% 4.63% 6.97% ≤ 5 N/A N/A N/A $325,249,169 2.50%
2008 -9.40% -9.68% 5.24% ≤ 5 N/A N/A N/A $159,745,998 1.60%
2009 16.72% 16.38% 5.93% ≤ 5 N/A N/A N/A $163,422,688 1.48%
2010 8.35% 8.03% 6.54% ≤ 5 N/A N/A N/A $180,779,908 1.54%
2011 8.13% 7.81% 7.84% ≤ 5 N/A 3.63% 2.82% $296,411,992 2.19%
2012 5.70% 5.39% 4.21% ≤ 5 N/A 2.54% 2.42% $572,157,836 2.77%
2013 -1.19% -1.48% -2.02% ≤ 5 N/A 2.73% 2.75% $546,542,180 2.15%
2014 6.83% 6.51% 5.97% ≤ 5 N/A 2.66% 2.63% $455,775,914 1.41%
2015 1.13% 0.83% 0.55% ≤ 5 N/A 2.91% 2.88% $416,911,671 1.34%
2016 3.54% 3.23% 2.65% ≤ 5 N/A 2.94% 2.98% $141,450,179 < 1%
2017 5.02% 4.71% 3.54% ≤ 5 N/A 2.77% 2.78% $148,848,112 < 1%
1Q 2018 -1.00% -1.08% -1.46% ≤ 5 N/A N/A N/A $159,389,831 <1%
2Q 2018 -0.17% -0.24% -0.16% ≤ 5 N/A N/A N/A $153,702,135 <1%
3Q 2018 0.18% 0.11% 0.02% ≤ 5 N/A N/A N/A $828,745,745 <1%

1 Past performance is not indicative of future results. Net of fee returns reflect the deduction of investment advisory fees and are calculated in the same manner as gross of fee returns. Net of fee returns are calculated using the highest fee rate disclosed in the Firm’s ADV. Fees for separate accounts may be negotiable depending upon asset size and type of account. The performance benchmark for the Logan Circle Core Fixed Income composite is the Bloomberg Barclays Aggregate Bond Index, which is a broad based index that measures the investment grade, U.S. dollar denominated, fixed rate, taxable bond market. For additional benchmark disclosure, please see the full GIPS® disclosures at the end of this Presentation.

2 “N/A” is an indication that the information is not statistically meaningful due to an insufficient number of portfolios (five or fewer) in the composite for the entire year. Standard deviation is only presented for accounts managed for a full calendar year.

3 The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 month period. The standard deviation is not presented for 2000 through 2010 because it is not required for periods prior to 2011. It is also not presented for quarter-ends.

4 Prior to November 1, 2007, the investment team was part of Delaware Investments and therefore the Firm is reporting the percentage of Firm assets only for all accounts managed by Logan Circle Partners, L.P.

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