Page 41 - July JSF report

INVESTMENT COMMITTEE MEETING MINUTES (DRAFT) (4)
last year, Prime continues to believe future returns will meet or exceed the public equity market return
+3% target, which has been the case over the last 10 years and longer periods.
Current Allocation
Venture 48% Buyout/Growth Eq. 31% Distressed/Opportunistic 7% Real Assets 14% Total Private Capital Portfolio 100%
MSCI All Country World Eq. Index +3%
Private Capital Composite Index
Target Allocation
20-40% 30-60% 0-25% 15-25%
Recent Annual Return
Table 3
JSF Private Capital Allocation & Returns
Last Year
-20% E -6% E 5% 11% -10.3%
-4.7% -4.8%
Last 10 Years
18% 15% 11% 9% 12.2%
11.3% 12.9%
With a 48% weighting in Venture JSF is overweighted in this space versus its peer group where the Venture weighting is closer to 15% to 20%. This explains JSF’s relatively poor performance over the last year. However, over longer periods Venture, although more volatile, has been a positive contributor as illustrated in Table 3. A major positive for JSF over the last year has been the strong performance from Real Assets, especially MAP.
As indicated in Table 3, Prime over time intends to reduce the Venture weighting by about one third and increase the Buyout/Growth Eq. weighting by an equal offsetting amount. With this in mind and to maintain the overall 25% target asset allocation to the Private Capital space JSF has or will be making 5 new Private Capital commitments in 2023 totaling $10 mill as follows:
Buyout/Growth
Venture Distressed/Opportunistic Real Assets
Total
Alpine 1X Genstar X1 TruebridgeVIII DK Opps Int. VI Bain RE III
$2.5 mill $2 mill $1.5mill $2.0mill $2.0 mill $10 mill
6. Recent Investment Activity – A schedule showing JSF investment activity for the five months ending May 31, 2023 was circulated. In total there were 80 transactions 78 of which related to Private Capital flows. Distributions (inflows) again exceeded new capital calls (outflows) by $693,177 with energy
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Page 39 HORIZONS