ITEM: B.2

City of Los Angeles Fire & Police Pension Fund Board Presentation

July 18, 2013

Presenters Contact Information

Mr. Leslie F. Bond, Jr. Chief Executive Officer [email protected]

Ms. Geri Sands Hansen Chief Investment Officer [email protected]

Mr. Vennie Lyons II Vice President [email protected]

Attucks Asset Management, LLC CHICAGO (Headquarters) 321 North Clark Street, Suite 1450 Chicago, Illinois 60654

LOS ANGELES 1000 S. Hope Street, Suite 429 Los Angeles, California 90015

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The Attucks Advantage

Organization

A certified MBE registered investment advisor founded in 2001 in Chicago

People

100% owned by our principals, with thoughtful and consistent growth in senior level staff and analysts

Firm Dynamic

Independent, entrepreneurial, disciplined and focused on change through ideas

Primary Goal

Build customized emerging manager programs to outperform relevant benchmarks at controlled risk levels

Underlying Mission

Discover, engage and grow minority and emerging managers – we have funded over 60 emerging manager products

Client Advantage

Applying our years of consulting experience to anticipate and deliver quality – an extension of your team

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The Attucks Advantage

Experience •

•

•

A leader in emerging and minority manager investing across asset classes since 2001

Invested over $2.0 billion with emerging managers Long track record of investing in minority/emerging managers

Expertise

Integrity

•

Proprietary manager database

•

No conflicts of interest

•

Qualitative assessment

•

•

Manager analysis

Investment management fees are our sole source of revenue

•

Due diligence

•

Multi-level peer review process

•

Strategy analysis

•

Culture of compliance

•

Portfolio engineering

•

General Counsel on staff

•

Integrated risk management

•

In-depth investment manager due diligence

•

Sophisticated reporting

4

The Attucks Team Les Bond 1,2 Chief Executive Officer Compliance and Risk Management Kevin Wickliffe

1

Investments Geri Sands Hansen

Managing Director/General Counsel

Marketing 1,2

Chief Investment Officer

Finance and Technology

Candace McKeever

Brian DeKind

Director of Business Development

DeKind Computer Consultants, Inc.

Ayahlushim Getachew

Andy Miriani

Director of Marketing

Auditor, Miriani & Associates, Inc.

Chief Compliance Officer

Catherine Sweeney Gregory Hansen

1

Managing Director

1,2

Managing Director

Patrick Silvestri Wes Nissen

Senior Vice President

DLA Piper, LLP

Winston Blake Jr. Vice President

Vennie Lyons Vice President

Audrey Wang Vice President

Analyst Group Analysts … 3

(1) Management Committee (2) Investment Committee

5

The Attucks Team – Investment Staff Team Member

Responsibility

Executive Officers and Co-Founders Manager Selection Mr. Leslie F. Bond, Jr. Product Development CEO Client Service Manager Selection Ms. Geri Sands Hansen Portfolio Construction CIO Product Development Compliance and Risk Management Mr. Kevin Wickliffe Chief Compliance Officer Managing Director Risk Management General Counsel Legal Risk Management Mr. Gregory Hansen Technology Development Managing Director Operations Oversight Investments Manager Research Ms. Catherine Sweeney Portfolio Construction Managing Director Client Service Manager Research Mr. Winston Blake, Jr. Client Service Vice President Business Development Manager Research Mr. Vennie Lyons Client Service Vice President Technology Manager Research Mr. Patrick Silvestri Portfolio Construction Vice President Compliance Manager Research Ms. Audrey Wang Portfolio Construction Vice President Compliance

Education

Years of Investment Experience

AB, Princeton University JD, Northwestern University School of Law MBA, Northwestern University Kellogg Graduate School of Management

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AB, The University of Chicago MA , Economics, The University of Chicago

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BS, University of Kansas MBA, University of Kansas JD, University of Kansas BS, Mathematics, University of Michigan MBA, The University of Chicago Booth School of Business Actuarial Designations: FCA, ASA, MAAA, EA

14 32

BA, Mathematics, Marist College

36

BS, Communications, Northwestern University MBA, Northwestern University Kellogg Graduate School of Management

9

BA, Business Management, Morehouse College MBA, Northwestern University Kellogg Graduate School of Management

11

BS, Finance, Northern Illinois University MBA, Kellstadt School of Business, DePaul University

14

BBA, Finance and Economics, Loyola University Chicago MBA, Kellstadt School of Business, DePaul University CAIA, Chartered Alternative Investment Analyst

11

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We Serve Some of the Largest US Pension Plans with $2.1 Billion in Assets Under Management MANAGER-OF-MANAGERS STRATEGIES All Capitalization AARP Operating Fund* Chicago Teachers’ Pension Fund Maryland State Retirement and Pension System New York City Employees’ Retirement System Ohio Bureau of Workers’ Compensation Seattle City Employees’ Retirement System State of Michigan Retirement System* UAW Retiree Medical Benefits Trust – Ford* UAW Retiree Medical Benefits Trust – GM* Large Capitalization Chrysler LLC New York State Insurance Fund – Large Cap Core New York State Insurance Fund – Large Cap Value

Small Capitalization Los Angeles City Employees Retirement System Los Angeles Fire & Police Pension New York City Police Retirement System New York City Teachers’ Retirement System New York City Firemen’s Retirement System International Maryland State Retirement and Pension System Fixed Income Maryland State Retirement and Pension System

HEDGE FUND OF FUNDS Attucks Diversity Fund Limited * The relationship with this client is confidential and further disclosure is not permitted.

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LAF&PP Portfolio History

LAFPP’s INITIAL FUNDING WAS CRITICAL TO OUR DEVELOPMENT AND SUCCESS 

LAFPP funded Attucks in January 2005



LAFPP was Attucks’ second client and invested $50 million in a small capitalization core strategy that consists of emerging and minority-owned investment managers



Three out of five managers in our Portfolio are California-based investment firms that have grown as a result of LAFPP’s investment



Attucks provides a diversified exposure to small cap asset class at a lower risk than typical standalone small cap managers



Attucks provides a competitive, low total fee structure for the multi-manager small cap asset class

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Attucks’ Partnership with the LAF&PP 





Solid and stable team with a proven track record –

Headquartered in Chicago, Illinois with an office in downtown Los Angeles

–

Long-term solid performance track record

–

Senior professionals average over 25 years of investment experience

Robust research process –

Sound investment program that meets both fiduciary and social needs

–

First funders for numerous new strategies and new managers

–

Extensive knowledge of and interaction with the minority and emerging manager universe

–

Sophisticated tools to evaluate, track and score managers

Portfolio Construction and Monitoring –

Customized portfolio solutions based on LAF&PP’s ongoing needs

–

In-house legal, compliance and portfolio accounting teams integrated into portfolio management process

–

Comprehensive risk management discipline separate from the client service and investment functions

–

Relationship management between client custodian and investment managers

–

Monitoring of the underlying investment managers’ emerging manager status and M/W/DBE certifications 9

Value of the Manager-of-Emerging Managers Program DIVERSIFIED ALPHA SOURCE    

Provides opportunities to invest with an overlooked and under-researched universe of investment managers Builds capacity with managers prepared to take on an additional asset allocation or replace existing graduated managers These smaller, more nimble firms allow for easier and more rapid implementation of value-added ideas Emerging managers have not reached an asset size that inhibits agility and they concentrate on their best ideas

PORTFOLIO AND ENTERPRISE RISK CONTROLS     

Efficiency to access small managers – role that we perform as an extension of your staff In-house legal, compliance and portfolio accounting teams integrated into the portfolio management process Comprehensive risk management discipline is separate from the client service and investment functions Continued manager due diligence for vetting operational and investment capabilities Sophisticated tools to evaluate, track and score emerging managers

ACCESS TO BEST-IN-CLASS BOUTIQUE MANAGERS  

 

Immediate exposure to a diverse line-up of emerging managers through our database Easier to allocate large amounts of money because of the multi-manager structure “Buffer” layer provided between the Plan and the managers Customized solutions based on clients’ needs - all portfolios are unique

RESULT: Sound investment program that meets both fiduciary and social needs

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Attucks’ Investment Philosophy We believe small, independent and entrepreneurial investment firms possess the ability to generate superior returns

Strategic Design Proprietary Database  



Identify highly qualified managers for the investment program Track and monitor emerging managers not typically covered by consultants As a small business ourselves, we understand emerging managers’ issues and needs

Multiple Managers   

Multiple Styles 



Designed to achieve outperformance over different market conditions Reduce risk/volatility in a portfolio through complimentary manager styles

Each manager concentrates on focused market strategy Choose managers based on quantitative methods Facilitates the replacement of managers when necessary

Satisfy Plan’s Objectives

Excess Return Risk Management Diversification

Risk Controls 

 

Broad Index segmented into components for total portfolio risk control Extensive due diligence process Proprietary risk modeling

Manager Structures

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Seven-Step Investment Process

Investment Policy 1. Establish Program Investment Guidelines 2. Analyze Benchmark Components

Portfolio Structure 3. 4. 5. 6.

Screen Managers Bottom-Up Manager Research Risk Review Portfolio Construction

Portfolio Monitoring 7. Ongoing Monitoring ♦ Client Specific Monitoring ♦ Monitor Subadvisor Performance ♦ Monitor Subadvisor Risk Profile ♦ Confirm Investment Guidelines

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Seven-Step Investment Process - Portfolio Structure Screen Proprietary Database

  

Style Capitalization Manager status

Investment Policy 1. Establish Program Investment Guidelines 2. Analyze Benchmark Components

Rank Manager Scorecard

Quantitative Review

Qualitative Review Optimization Optimal Portfolio

    

Excess return Alpha Information ratio Batting average Maximum drawdown

Research  

People, process and philosophy Firm growth and business continuity

Portfolio Structure 3. 4. 5. 6.

Screen Managers Bottom-Up Manager Research Risk Review Portfolio Construction

Portfolio Monitoring 7. Ongoing Monitoring ♦ Client Specific Monitoring ♦ Monitor Subadvisor Performance ♦ Monitor Subadvisor Risk Profile ♦ Confirm Investment Guidelines

Construct   

Multi-factor optimization Maximize alpha Minimize tracking error 13

LAF&PP Subadvisors – Preliminary Asset Allocation as of June 30, 2013

Subadvisors

Strategy

Location

Ownership

Assets

GW Capital

Small Cap Core

Washington

Asian-American

$22,464,450.45

Current Portfolio Allocation EAM 13% GW Capital 26%

Lombardia Capital Partners

Small Cap Value

California / Illinois

Hispanic

$22,538,613.62 Small-Micro Growth

GlobeFlex 18%

Opus Capital Management

Small Cap Value

Ohio

African-American / Woman

SCC

SCG

$14,244,769.97

SCV

GlobeFlex Capital

EAM Investors total

Small Cap Growth

Small and Micro Cap Growth

California

Woman

$15,831,609.96 Opus 16%

California

Emerging

Lombardia 26%

$11,396,262.47 $86,475,706.47

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LAF&PP Sub-advisor Style Analysis

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LAF&PP Small Capitalization Equity Portfolio Results for Periods Ending June 30, 2013 (preliminary)

Annualized MTD 3-months

YTD

1 Year

3 Yrs

5 Yrs

7 Yrs

ITD

Attucks Portfolio - Gross

-0.79%

3.04%

17.20% 27.42% 19.71%

8.51%

6.52%

6.84%

Russell 2000 Index

-0.51%

3.09%

15.86% 24.20% 18.67%

8.77%

5.82%

6.30%

Annual Performance 2010 2009 2008

2007

2006

2005

2012

2011

Attucks Portfolio - Gross

15.25%

-1.16%

25.22% 32.46% -37.80%

3.09%

15.56%

6.95%

Russell 2000 Index

16.34%

-4.17%

26.85% 27.19% -33.80% -1.55%

18.35%

4.56%

Past performance is not an indication of future results. Please see ‘Disclosures’ starting on page 23. Information and opinions in this presentation were obtained or derived from sources Attucks believes to be reliable, however, Attucks makes no representation as to the accuracy or completeness of any such information or opinions. The information and opinions contained in this presentation were prepared by Attucks and are for such use and informational purposes only and subject to change without notice.

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The Attucks Team

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The Attucks Team

LESLIE F. BOND, JR. Chief Executive Officer

Professional Experience  Responsible for the overall management of Attucks, new product and new business development  26 years of investment management experience, 16 years as a successful entrepreneur  Founded Attucks in 2001 to fill a need for an independent entrepreneurial managerof-managers  Founded Columbia Capital Management in 1996 as an independent financial and investment advisor to governmental entities Outside Activities  Deputy General Counsel, Metropolitan Pier and Exposition Authority of Chicago  General Counsel, Comptroller of the City of St. Louis with additional responsibilities as Fiscal Manager of External Finance  Chairman Elect and Board of Directors, National Association of Securities Professionals, the Marshall Faulk Foundation, Center for Tax and Budget Accountability, and the MOBILE Care Foundation; member of the Business Leadership Council, the New America Alliance and the City of Chicago Planning Commission Education  AB degree, Princeton University, Woodrow Wilson Scholar (1979)  JD, Northwestern University School of Law (1983)  MBA in Finance and Marketing, Northwestern University Kellogg School of Management (1983)

GERI SANDS HANSEN Chief Investment Officer

Professional Experience  Chief Investment Officer responsible for strategic design and development of the manager-of-managers funds  28 years of investment management experience, 25 years of experience in evaluating investment management firms and structuring investment programs for institutional clients  Founded Attucks in 2001 to implement her long-held belief of outperformance in the emerging manager space  Principal, Mercer Investment Consulting responsible for large client relationships in the public and corporate arenas  Headed Mercer’s defined contribution practice in the Midwest  Towers Perrin, Investment Consultant  Chicago Board Options Exchange, new derivative product development  First Chicago, Economist Outside Activities  Steering Committee, The Woman’s Board, The University of Chicago  Member, Chicago Finance Exchange  Board of Directors, Illinois College of Optometry Education  AB in Economics, The University of Chicago (1981)  MA in Economics, The University of Chicago (1983)  Completed all PhD coursework in Economics at The University of Chicago 18

The Attucks Team

KEVIN B. WICKLIFFE

Managing Director & General Counsel

Professional Experience  General Counsel and Chief Compliance Officer responsible for all legal and investment advisory compliance matters  13 years investment operations and compliance experience  Licensed Attorney in Kansas, focused in areas of general corporate law, municipal finance and real estate Outside Activities  Board of Directors, Big Brothers Big Sisters, Douglas County, Kansas Education  BS in Business Administration (1984), JD (1987) and MBA (1990) from University of Kansas

CATHERINE G. SWEENEY Managing Director

Professional Experience  Responsible for the assessment of minority and emerging investment management firms, portfolio management and client service  Over 30 years of investment management experience, more than 20 years of experience in evaluating investment management firms and structuring investment programs for institutional clients  Joined Maxam Capital Management in 2005 to lead their emerging manager group responsible for the assessment of all emerging and minority-owned, as well as traditional investment management firms  Tremont Capital Management, Vice President, responsible for minority, traditional and all non-alternative consulting and client relationships  One of the original employees of consulting firm Rogers, Casey and Barksdale, Inc. specializing in performance analytics and measurement Education  BA in Mathematics, Marist College (1975)

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The Attucks Team

GREGORY D. HANSEN Managing Director

Professional Experience  Responsible for investment risk management and overseeing investment technology  32 Years of experience in pension consulting with large organizations on risk management of their pension plans  Principal at Towers Perrin where he served large corporate clients as lead actuary and financial management consultant, including all aspects of pension design, finance, investment and compliance  Conducted asset/liability modeling studies for dozens of large corporations and public entities, assisting them in evaluating risk and liability driven investment strategies Outside Activities  Fellow of the Conference of Consulting Actuaries, Associate of the Society of Actuaries, Member of the American Academy of Actuaries, Enrolled Actuary Education  BS in Mathematics, the University of Michigan (1979)  MBA degree in Finance, the Booth School of Business, The University of Chicago (1981)

PATRICK J. SILVESTRI Vice President

Professional Experience  Responsible for manager research, portfolio construction and compliance  14 years of industry experience  Consultant, Mercer Investment Consulting, where he had approximately $10 billion in assets under advisement  Assisted clients with investment policies and objectives, manager selection, strategic asset allocation and performance evaluation  Emerging manager research, Mercer Investment Consulting, placed over $2 billion of client’s assets with minority of women owned firms  Various other roles with Mercer, including performance reporting, transition asset management, systems integration and manager research Education  BS in Finance, Northern Illinois University (1998)  MBA, Kellstadt Graduate School of Business, DePaul University (2004)

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The Attucks Team

AUDREY WANG Vice President

Professional Experience  Responsible for manager research, portfolio construction and compliance  11 years of investment experience  Assistant Director of Research, Marco Consulting Group, where she managed the approval process for manager in the equity fixed income and alternatives space  Manager, Alternatives, Marco Consulting Group, where she managed and conducted searches in the hedge fund-of-funds space Education  BBA Cum Laude in Finance and Economics, Loyola University (2002)  MBA with distinction in Financial Analysis, Kellstadt Graduate School of Business, DePaul University (2008)  Registered Chartered Alternative Investment Analyst

VENNIE LYONS, II Vice President

Professional Experience  Responsible for client service, client reporting, performance calculations and custody relationships  11 years of financial and investment experience  Underwriter, JP Morgan Chase responsible for monitoring credit quality and assessing risk of a $350 million portfolio  Analyst and Relationship Manager, JP Morgan Chase Middle Markets, where he was responsible for managing and growing a portfolio of businesses with revenues of $10-$750 million Education  BS in Business Management, Morehouse College (2001)  MBA degree in Entrepreneurship & Innovation, International Business, Technology Industry Management and Marketing, Northwestern University Kellogg School of Management (2010)

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The Attucks Team

WINSTON BLAKE, JR. Vice President

Professional Experience  Responsible for client service, client reporting, performance calculations and custody relationships  9 years of investment experience  Investment Associate, Chase Capital Corporation, where he executed subordinated debt and equity investment for companies across JP Morgan Chase’s U.S. footprint  Special Credits Officer, JP Morgan Chase, worked on reducing risk in JP Morgan Chase’s $1billion commercial mortgage portfolio in Florida  Commercial Banker, JP Morgan Chase, where he provided lending and treasury products for a portfolio of 30 middle market companies Education  BS Communications Studies, Northwestern University (2003)  MBA with a concentration in Finance and Entrepreneurship, Northwestern University Kellogg School of Management (2009)

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Disclosure Information Performance where indicated is presented gross of management fees and does not include the reinvestment if dividends. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. Performance data presented as “gross of fees” reflects performance presented before deduction of advisory fees but net of all transaction fees. Advisory fees are paid quarterly, which produces a compounding effect on the total rate of return net of management fees. As an example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) $1,000,000 investment, (b) portfolio return of 5% a year, and (c) 1.00% annual investment advisory fee would be $10,272 in the first year resulting in a total portfolio value of $1,039,539, and cumulative effects of $55,583 over five years resulting in a total portfolio value of $1,213,961, and $123,059 over ten years resulting in a total portfolio value of $1,473,700.

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Disclosure Information This presentation was prepared in response to your request.

The entire content of this presentation is confidential and not to be disseminated without Attucks’ permission. Copies of Attucks Asset Management, LLC Form ADVs Part II are available upon request. Attucks Asset Management, LLC is pleased to provide additional information about any of its products or to make a presentation in person. For additional information, please contact Geri S. Hansen or Les Bond.

Attucks Asset Management, LLC CHICAGO 321 North Clark Street, Suite 1450 Chicago, Illinois 60654 (312) 422-9900

LOS ANGELES 1000 S. Hope Street, Suite 429 Los Angeles, California 90015

CONNECTICUT 381 Post Road - Second Floor Darien, Connecticut 06820 www.attucksfunds.com

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Appendix

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Attucks Technology Overview

Attucks’ technology enhances our research, operation and execution 

Proprietary systems for manager screening and research, risk management, portfolio rebalancing and performance measurement



Technology and systems infrastructure customized across client accounts and products

Analytical Software/Database Subscriptions 

    



SuperOffice Manager Database Proprietary “Scorecard” Advent Axys PerTrac Financial Solutions HFR Emerging Hedge Fund Database eVestment Database Morningstar Direct

Outside Service Providers 

    

DeKind Computer Consultants DLA Piper, LLP Mesirow Financial Chubb Financial Miriani & Associates Ernst & Young

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Adding Value to our Managers 





Sharing our knowledge and experience –

Our firm’s mission is to grow emerging and especially M/W/DBE managers

–

We are actively involved with our managers – assisting with marketing materials, ownership structures, fee structures and portfolio structures throughout their development phase

Helping our managers to grow –

We discover new firms and help build the capacity of existing firms

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Attucks provided initial funding for portfolios of numerous emerging managers

Partnering and adding value –

Attucks considers its relationship with its managers as a partnership and seeks to add value to the managers

–

When Attucks collects data, conducts due diligence or interacts with emerging managers, Attucks understands their businesses and the demands on their resources

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Attucks Manager Pathway Getting to know new managers

How do we source new investment talent? Conferences/Seminars Client referrals Manager inquiries Industry contacts

Does the investment process make sense?

How do we monitor the manager universe?

Attucks Questionnaire Introductory meeting HFR , eVestment, and Morningstar databases

YES

Qualitative evaluation Portfolio review Performance review

SuperOffice manager database and contact management system

Does the investment manager have the resources to execute the process?

YES

YES

Is the manager/strategy a fit for an existing or potential mandate? Onsite meeting Compliance review Back -office review Trading analysis

NO

NO

Discontinue analysis Suggest improvements

Is there a different, useful process the manager is executing?

NO

Attucks Scorecard SuperOffice PerTrac

NO

YES

Discontinue analysis Suggest improvements

Is the investment manager executing the process? Quantitative evaluation Portfolio analysis Performance analysis

Initial due diligence meeting Business risk analysis

NO

Evaluating the manager universe

Continue to monitor for future opportunities

Return to the beginning and re-evaluate the actual investment process

Propose for New Mandate or Program Graduation

YES

Has the manager’s AUM grown in a healthy manner? Due diligence meeting Business analysis Portfolio review

YES

Has the manager remained consistent with style? Portfolio analysis Performance analysis

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