NABTU Capital Strategies Meeting Monday, June 24 th , 2019 Keith - - PowerPoint PPT Presentation
NABTU Capital Strategies Meeting Monday, June 24 th , 2019 Keith Cahill, Managing Director, Head of Taft-Hartley Business and Consultant Strategy Team 212-648-0845 , keith.m.cahill@jpmorgan.com (This page intentionally blank) 1 | FOR
Monday, June 24th, 2019
Keith Cahill, Managing Director, Head of Taft-Hartley Business and Consultant Strategy Team 212-648-0845, keith.m.cahill@jpmorgan.com
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JPMAM Taft-Hartley Team
Keith Cahill, Managing Director, is head of the Taft-Hartley client business and North American Consultant Strategy Team at JPMorgan. He is also a member of the North America Institutional Management committee. Prior to his leadership appointments, Keith was a client advisor, leading the firm’s efforts in working with Taft-Hartley/Multi-Employer plans. An employee since 2006, Keith previously worked in the Asset Management division of the firm's Real Estate Investment Group, managing a portfolio of real estate investments valued at more than $6 billion. In addition, he has held positions in the firm's Internal Audit department, and is a member of the JPMorgan Chase Ambassador program. Before joining the firm, he was with HRH Construction
International Foundation of Employee Benefit Plans.
Client Advisors
Tom Villanova, CFA, CAIA, Executive Director, is a Client Advisor in the Investment Management division of J.P. Morgan Asset Management. An employee since 2007, Tom is focused on the firm's efforts in working with Taft-Hartley/Multi-Employer plans. Before his current role, Tom was a client advisor in JPMAM’s Endowments and Foundations Group, responsible for partnering with endowments, foundations and other not-for-profits to address market and investment challenges. Prior to this position, Tom worked for J.P. Morgan Private Bank where in his role he worked with sophisticated families, private equity sponsors, hedge fund managers and their firms on investment solutions and hedging strategies. Tom is a Chartered Alternative Investment Analyst charterholder and Chartered Financial Analyst charterholder. Tom holds a B.A. in finance from Marquette University. He also holds Series 3, 7 and 66 licenses. Stephan T. Murphy, Managing Director, is a Client Advisor focused on Taft-Hartley/Multi-Employer Pension Plans. A J.P. Morgan employee since 1998, previously he was a Client Advisor for Institutional Asset Management across the spectrum of investment strategies covering Corporate, Public and Multi-Employer Pension Plans nationally. Prior to 2012 he was a Client Portfolio Manager for Global Real Assets focused on J.P. Morgan’s real estate investment products. Prior to 2007, he was head of the Development and Engineering Group, responsible for development management/investments,
and over $5 billion of development projects. Prior to joining the firm, he was employed by O’Connor Realty Advisors, Inc., Eastdil Realty, Lazard Realty and the City of Englewood, NJ. He is a member of IFEBP, NCCMP, Urban Land Institute, PREA and NAREIM. Stephan holds a B.A. from Syracuse University, as well as both a B.S. and B.L.A. from SUNY College of Environmental Science and Forestry. He holds Series 7 and 63. Matthew Johnson, Vice President, is a Client Advisor in the North America Institutional division of J.P. Morgan Asset Management. An employee since 2012, he is a member of the dedicated Taft-Hartley Team, focused solely on working with Taft-Hartley/Multi-Employer Plans. Matthew was previously an analyst supporting Client Advisor and Relationship Managers’ efforts delivering the firm’s global resources to provide strategic investment management solutions tailored to the needs of public, corporate, healthcare organizations, and Taft-Hartley/Multi-Employer plans. Before joining the firm in 2012, Matthew earned a B.A. in economics from Saint Olaf College. He holds Series 3, 7 & 63 licenses. Matthew is also is a member of the International Foundation of Employee Benefit Plans. Alex Schneider, CFA, Executive Director, is a client advisor in the Investment Management division of J.P. Morgan Asset Management. An employee since 2018, Alex is focused on the firm’s efforts in working with Taft-Hartley/Multi-Employer plans as well as public pension plans. Prior to joining the firm, Alex was a Director at William Blair and was responsible for Taft-Hartley/Multi-Employer new business development and client service. Prior to William Blair, he was a Relationship Manager at PNC Institutional Investments. Alex is a Chartered Financial Analyst charterholder. Alex holds a B.S. in Finance and Marketing with distinction from University of Illinois at Chicago and holds his M.B.A w/concentrations in Finance, Econometrics and Accounting from University of Chicago Booth School of Business. He also holds his Series 7 and 66 licenses.
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TAFT-HARTLEY CLIENTS BY ASSET CLASS
Committed to Partnering with Taft-Hartley/Multi-Employer Clients
KEY BUSINESS STATISTICS
2019.
strategies.
COMMITMENT TO JOB CREATION
has hired over 500k veterans since 2011, >14,000 by JPMC, and has raised its target to hiring 1mm veterans.
completed using 100% union labor from 2006 – 2019, with $2.0bn from 2019 developments in progress.
projects since from 2006-2019.
Chrysler’s debt, facilitating fair agreements between workers and creditors, saving thousands of jobs and propelling a comeback by the Detroit auto industry.
RESPONSIBILITY
veterans and their families, through the Military Warriors Support Foundation, in our commitment to award 1,000 mortgage-free homes to veterans and their families nation-wide.
Multi-Employer Pension reform in order to strengthen the system for current and future participants. Our published research highlights the importance of the Multi-Employer Pension system to the US Economy, and the critical importance
39.3%
Real Assets
33.0%
AM Solutions
12.4%
Fixed Income
8.9%
US Equity
3.6%
International Equity
2.6%
Private Equity
0.2%
Cash
Source: Institutional Book of Business (Updated 3/31/2019).
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Quality workmanship – Union labor
Source: JPMAM construction stats 2006-Q1 2019. These examples represent selected JPMAM investments under development. However, these types of investments may not be available to or, if available, may not be selected for investment by any fund in the future.
From 2006 to 2019, we completed nearly $6.5 billion of union labor construction Roughly 34 million union labor man hours were spent on our projects from 2006 to 2019 Our 2019 developments in progress include $2.0 billion of union labor construction
3Eleven, Chicago 923 Folsom, San Francisco 1345 Ave of the Americas, NYC Liberty Harbor North, Jersey City, NJ 250 East 57th Street, NYC 110 N. Carpenter, Chicago Fulton West, Chicago Van Ness, Boston
caec2370-5c90-11e9-aa3e-3a2fcc6727bb
A-rated by the North America's Building Trades Unions' Real Estate Manager Survey
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Senior Management Commitment
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Corporate Real Estate Responsible Contracting – 270 Park Avenue Redevelopment
270 Park Avenue is demolished and rebuilt.
spent approx. $370MM on new construction employing a 100% union workforce of nearly 1,200 – 1,500 union men and women. We estimate that about 25% of the workforce was also diverse
and new build of 270 Park where we anticipate a 100% union workforce of approximately 8,000 union men and women and anticipate close to a 30% diverse workforce will be employed to help us deliver the new HQ of JPMC
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U.S. Real Estate
–
This Policy is designed to ensure that contractors, managers, consultants and other vendors engage in fair and responsible employment practices. This policy also provides the flexibility to ensure commercially reasonable efforts are used to employ vendors who engage in these practices.
–
Belief: A workforce that reflects the local community, is well trained, fairly compensated, and provides a safe working environment produces a superior product.
–
A Responsible Contractor, as related to this policy, is one who complies fully with all applicable labor laws and provides equal employment, a fair wage, and fair benefit in the local market. Benefits evaluated against the local market may include health insurance, retirement savings, education, registered apprenticeships, and/or required accreditations
–
Fee is not the sole criteria during vendor selection. Consideration is also given to relevant experience and to a vendor’s reputation of fairness, integrity, ethics, diversity, safety and dependability.
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Policy applies to contracted and subcontracted work valued over $100,000 at time of award
expecting 100% union participation
National Real Estate Advisors
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Infrastructure Investments Fund (“IIF”) ─ Open Ended Core / Core+ Infrastructure Portfolio
Founded in 2006 Open-ended perpetual structure Core/core+ infrastructure. Focus on Diversification, Inflation Protection
& Yield (“D.I.Y.”)
18 portfolio companies (361 assets) in 25 countries & 11 subsectors Focus on middle market platform investing – Average transaction size
since 2013 of approx. USD 75mm
Queue currently expected to be 6 months or less from next
quarter end close Sector Breakdown: Geographic Breakdown:
All data as of December 31, 2018. The advisor seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. 1 The target returns and cash yield are for illustrative purposes only and are subject to significant limitations. An investor should not expect to achieve actual returns or yield similar to the targets shown above. Please see the complete Target Return disclosure at the conclusion of the presentation for more information on the risks and limitation of target returns.
2 Yield on NAV, the trailing one-year cash yields were calculated using individual quarterly cash yields. 3 Other includes Japan, Chile and South Africa. 4 3.5% invested in Sweden, which is denominated in SEK.
Net Asset Value
USD 10.3 billion
Gross Asset Value
USD 21.9 billion (53% loan-to-value)
Target Return
8-12% net1
Target Cash Yield
5-7% on NAV1 (cash distributions)
Sector Focus
Distribution/Regulated, GDP-Sensitive &
Contracted/Power Geographic Focus
U.S., Canada, Western Europe, and other
OECD
Summary of Key Strategy Elements Strategy Overview Existing Portfolio
Seeks to deliver stable cash yield, diversification, attractive risk-adjusted returns and inflation protection through market cycles
Cash Yield and Distributions as Foundation of Total Return2
$0 $100 $200 $300 $400 $500 $600 $700 $800 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% '11 '12 '13 '14 '15 '16 17 18
USD mm Contracted /Power 35.0% Distribution /Regulated 35.0% GDP- Sensitive 30.0% US 31.9% UK 21.9% Western Europe4 31.0% Australia 7.9% Canada 2.7% Other3 4.6%
be776530-2a65-11e9-bba7-ee036e7797d8 (February 7, 2019)
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Infrastructure Investments Fund
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Designed to guide the selection of independent contractors, including all
provide construction, repairs, maintenance and infrastructure operating services to qualifying assets in which the Fund invests
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Seeks to ensure that the selection process for independent contractors will include among other things, a demonstrated ability to provide reliable and high quality services which may be evidenced by:
compliance with applicable statutes
payment of fair compensation and benefits to employees
relevant experience, reputation, dependability
ability to provide cost-efficient services
–
The Fund supports a safe and healthy and profitable business environment through market competition, small business development, and control of operating
benefits for workers employed by contractors to the extent possible.
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The Policy shall apply to all U.S. infrastructure equity investments where the Fund
interest in, the operating company.
–
Policy applies to applicable service contracts with aggregate annual minimum value of
$50mm for new construction capital works
$25mm for ongoing capital works
$15mm for operating or maintenance contracts not involving capital works
sub-contractors for the construction of high pressure steel pipelines within the state
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Other Areas of Expertise
PEG was established at JPMorgan
Chase & Co. in 1997
Approximately $27 billion in assets
under management
Serving on over 200 boards
including funds and direct investments
PEG average tenure – 28 years: 9 founding members – 18 years: 19 senior portfolio
managers
– 15 years: portfolio management
team
Located in New York, London, Hong
Kong, Beijing, and New Delhi
Consistent out-performance over
multiple market cycles
24 Taft-Hartley Investors with
$450MM in AUM
Private Equity Group
Approximately $52 billion in assets
under management
$150mm global research budget 8 flagship strategies Located in New York, London, Hong
Kong, Tokyo, Singapore, Taipei, Seoul, and Shanghai
370+ investment professionals with
149 research analysts with over 9
years of average experience
16 Taft-Hartley Investors with $1.1B
in AUM
Emerging Market Equities
Approximately $256 billion in multi-
asset strategies
45+ year track record of managing
multi-asset portfolios
First Target Date portfolio manger to
be recognized by Morningstar as Allocation Fund Manager of the Year
Incorporate real participant behavior
into our glide path design
Strong risk-adjusted returns relative
to peers in the industry
All funds rank top quartile over the
last 10 years
11 Taft-Hartley Investors with $1.4B
in AUM
Target Date Funds
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Best Practices / Things to look for in your partner
demonstrated consistently over time
everything.