The CTPF April 15, 2025 Investment Meeting Preview

 

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Hello Tina Padilla, here, bringing you The April 15, 2025 Investment Meeting Preview

#5 on the agenda is the 4^th quarter of 2024 fund performance report.

1. Fund Value: The Fund was worth $12.7 billion at the end of the fourth quarter, which is $406.8 million less than it was at the end of September 2024.
2. Reasons for Change: The decrease in value was due to:
• Investment losses: The Fund lost $131.9 million from its investments.
• Cash outflows: $274.9 million was taken out of the Fund.
3. Asset Allocation: The Fund's investments were mostly within the allowed ranges, except for international stocks and bonds.
4. Market Performance: During the fourth quarter:
• U.S. markets went up.
• International markets went down.
5. Fund Performance:
• The Fund had a return of -1.02% before fees and -1.13% after fees.
• It did better than its Policy Target by 107 basis points (1.07%).
• It ranked in the 46th percentile compared to similar funds.
6. Long-Term Performance: Over five, seven, and ten years, the Fund has performed better than its Policy Target and is above the median of its peer group.

 

#6 of the agenda, Due diligence presentation from Newport Partners.  The reason that they are coming in for due is because our Consultants and fund investment staff are recommending that we continue to invest with this manager. #7 Recommendations to re-up with Newport Partners.

Commit $25 million to Newport Capital Fund IV in addition to $3 million as Special GP

Continuation of Newport Capital Fund III and Newport Capital Fund II strategies, which have performed well for CTPF– Performance as of September 30, 2024:

Fund II Net IRR 6.9% Net Equity Multiple 1.53x

Fund III Net IRR 9.4% Net Equity Multiple 1.10x (still in investment period)

 Adds vintage year diversification

Provides diversified exposure to necessity and grocery-anchored retail which is a segment of the real estate market that has performed well relative to other property types.

 Participating as a Special GP provides a fee benefit to CTPF as Special GP’s receive GP carried interest, but do not pay investment management fees on the GP commitment.  Assuming that Newport achieves a 15% gross IRR for the Fund over its life, the net return to CTPF would be 14.7% including Special GP carried interest and fee savings as opposed to 12.8% if CTPF did not participate as a Special GP.

After the investment meeting, there is a First Look meeting where trustees, staff, and consultants review presentations from minority managers. Hope this was helpful. Get involved and defend the Gold Standard, the Defined Benefit Retirement our Chicago Teachers’ Pension Fund.