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HomeMy WebLinkAbout2016 08 09 Regular 500 Quarterly Investment Performance ReviewBOARD OF TRUSTEES AGENDA ITEM ITEM 500 August 9, 2016 Regular Meeting REQUEST: Informational Consent Public Hearings Regular I X The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From The Bogdahn Group The Third Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Third Quarter Investment Return Report (50 Pages) WWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 2nd Quarter 2016 Attachment A 7��THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 2nd Quarter 2016 Market Environment THE: BOGDAHN GROUP. ■ The 2nd quarter of 2016 was very volatile as financial market returns were influenced by central bank policy expectations, rising commodity prices, mixed economic data, and increased global political and economic uncertainty caused by the U.K.'s June vote to discontinue its membership in the European Union (EU). Despite this volatility, asset class results for the period were broadly positive with the exception of international developed market returns. Higher risk assets, such as small cap equities, emerging market stocks, and investment grade and high yield corporate bonds, posted the strongest returns throughout the quarter. ■ Led by the small cap Russell 2000's return of 3.8 %, U.S. stock market indices were positive for the 2nd quarter. In contrast, for the 1 -year period, domestic large cap stock indices were the best performers, posting moderate gains, while domestic small cap indices posted negative returns. Broad international equity indices trailed domestic stock indices through both the quarter and prior year. In U.S. Dollar (USD) terms, returns for the MSCI Emerging Markets Index (net) were marginally positive for the quarter returning 0.7% while developed market equities, represented by the MSCI EAFE Index (net), returned -1.5 %. Both indices have experienced double digit losses over the 1 -year period, returning -12.1% and -10.2% respectively.. ■ The U.S. Treasury yield curve flattened throughout the 2nd quarter with near -term rates staying relatively flat and rates at the medium to long end of the yield curve falling near all -time lows. Despite their low yields, investment grade bonds have outperformed broad domestic and international equity indices over the past twelve months with the Barclays Aggregate Index returning 2.2% for the 2nd quarter and 6.0% for the trailing 1 -year period. Investment grade corporate bonds outperformed the remaining investment grade sectors for both the quarter and 1 -year period with the Barclays U.S. Corporate Investment Grade Index returning 3.6% and 7.9% respectively. Corporate issues experienced tailwinds from their higher durations relative to other areas of the fixed income market, as well as tightening credit spreads. The Market Environment Major Market Index Performance As of June 30, 2016 Quarter Performance MSCI ACWxUS -0.6% MSCI EAFE -1.5% MSCI Emerg Mkts 0.7% S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill 0.1 % 2.5% 2.6% 2.5% 3.2 % 3.8% - 2.2% 2.0% 1.1% 3.6 -2.0% 0.0% 2.0% 4.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill - 10.2% - 10.2% -12.1% 4.0% 2.1 % 2. % 0.6% -6.7% 6.0% 6.0% 4.49 4.3 ° 7.9% 0.1% - 14.0 % - 12.0 % -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Tum 7� Source: Investment Metrics 2 ■ BOGDAHN GROUP • U.S. equity index returns were positive across the capitalization spectrum during the 2nd quarter. Domestic stock prices increased through April and May, fueled by largely supportive macroeconomic data suggesting that the economic weakness experienced at the beginning of the year had been transitory. The strength in economic data led market participants to consider an increased probability for the U.S. Federal Reserve (Fed) to tighten monetary policy by increasing short -term interest rates as early as June. However, forecasts surrounding the timing of future Fed rate hikes were pushed out after the release of May's non -farm payroll report, which came in much weaker than expected. The possibility of a near -term rate increase became even more remote near the end of the quarter when the U.K. unexpectedly voted to exit the EU, creating political and economic uncertainty throughout global financial markets. Demand for equities remains high as investors struggle to find other sources of portfolio return in the current low interest rate environment. ■ Value stocks outperformed growth stocks across the capitalization spectrum for the second straight quarter. This value outperformance was generally due to investors seeking the perceived safety of value stocks given valuation levels and the volatility experienced throughout the period. Value indices were also beneficiaries of rising oil and natural gas prices as value -based benchmarks have higher allocations to the Energy sector. Mid cap value stocks were the best performers across the value spectrum, returning 4.8% during the period, followed by large cap value (4.6 %) and small cap value (4.3 %) stocks respectively. However, across the growth spectrum, small cap growth stocks (3.2 %) were the best performers followed by mid cap growth stocks (1.6 %). The Russell 1000 Growth Index, representing large cap stocks, had the weakest performance returning 0.6% for the quarter. Style trends are mixed over the 1 -year period. The Russell Midcap Value Index was the best performer (3.2 %), and the Russell 2000 Growth Index was the worst performer (- 10.8 %). • From a valuation perspective, equity valuations appear stretched relative to historical levels based on their forward Price /Earnings ratios (P /E). The large growth, mid growth, and small value indices have valuation levels close to their respective historical average, while the remaining indices fall between 106% and 114% of their 15 -year averages. Source: Investment Metrics 3 The Market Environment Domestic Equity Style Index Performance As of June 30, 2016 Quarter Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 0.8% 1000 Value 1000 Index 1000 Growth 0.6% MidCap Value MidCap Index MidCap Growth 1.6% 2000 Value 2000 Index 2000 Growth 2.6% 2.5% 4.6% 4.6% 4.8% 3.2% 4.3% 3.8% 3.2% 0.0% 2.0% 4.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth -10.8 16.7% -2.1% 6.0% 2.4% 2.1% - 1.9% 2.9% 2.9% 3.0 °/ 9% 0.6% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% T UE BOGDAHN GROUP. • Large cap sector performance was generally positive for the 2nd quarter with all but two sectors within the Russell 1000 Index posting gains for the period. The Consumer Discretionary and Technology sectors were the Consumer Disc (13.3 %) quarter's only laggards returning -1.4% and -2.2% respectively. Defensive 11.5% and interest rate sensitive sectors of the market continue to perform well Consumer Staples (9.5 %) as investors attempt to proxy dividend income as a substitute for paltry -38.3% investment grade bond yields due to the persistent low interest rate Energy (6.7 %) environment. Utilities, Telecom Services, and Consumer Staples all Financials (16.9 %) posted strong quarterly returns. These three sectors are also the only sectors to post double -digit returns over the past year, outperforming all Health Care (13.9 %) other sectors in the Russell 1000 Index by a considerable margin. The Energy sector was a notable performer during the quarter, returning 11.1% Industrials (10.7 %) due to increasing oil and natural gas prices. Supply disruptions in Canada Info Technology (19.7 %) and Nigeria, paired with a decrease in production from U.S. shale 13.1 °/ producers, contributed to reduced global supply, which drove energy Materials (3.2 %) prices higher. Despite a favorable quarter, Energy returns over the 1 -year 11.5% period continue to represent the weakest sector with a return of -6.9 %. Telecom Services (2.6 %) Materials (- 1.3 %), Health Care ( -3.7 %) and Financials ( -2.7 %) also posted Utilities (3.4 %) negative results over the prior year. ■ Similar to large cap sector results, small cap sector performance was largely positive for the quarter. In addition, small cap sector performance generally outpaced corresponding large cap sector results. Performance in large and small cap sectors also had similar observable trends. Higher yielding, defensive sectors and commodity price sensitive industries were the best performers during the 2nd quarter. In contrast, over the 1 -year period, all Russell 2000 Index sectors underperformed their corresponding Russell 1000 Index sectors with the exception of the Financials sector. The Energy (- 38.3 %), Health Care (- 21.3 %), and Consumer Discretionary (- 14.2 %) sectors were the largest detractors over the 1 -year period. Like the large cap index, Consumer Staples (11.5 %), Telecom Services (19.0 %), and Utilities (30.1 %) significantly outperformed other sectors. ■ Using the S &P 500 as a proxy, forward P/E ratios for six GICS sectors were below their long -term (20 -year) averages at quarter -end. The Technology and Health Care sectors were trading at the largest discount to their long -term average P/E ratios. In contrast, the Energy and Utilities sector valuations were the most extended relative to their historical P/E ratios. The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2016 Russell 1000 1 ❑Quarter 01 -Year -1.4% 1.7% 4.6 % o 17.2% 11.1% 6.9% 2.5% 2.7% 6.1 -3.7% 1.4% 5.7% -2.2% 3.6% 3.9% 7.3 23.4% 71% 31.5% -10.0% 0.0% 10.0% 20.0% 30.0% Russell 2000 1 ❑Quarter 01 -Year Consumer Disc (13.6 %) Consumer Staples (3.6 %) Energy (2.8 %) Financials (26.3 %) Health Care (14.0 %) Industrials (13.1 %) Info Technology (17.7 %) Materials (4.1 %) Telecom Services (0.9 %) Utilities (4.0 %) -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% THE, Source: Morningstar Direct 4 ( BOGDAHN `'� GROUP. - 14.2% !!!17.9% 9.7% 11.5% 4.4 °/ -38.3% 2.3% 4.8 0 -21.3% 3.1 % -6. % 2.6% -3.4% 13.1 °/ -4.6% 11.5% 19.0% 10.1% 310.1% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% THE, Source: Morningstar Direct 4 ( BOGDAHN `'� GROUP. Russell 1000 Apple Inc Top 10 Weighted Weight 2.58% Stocks 1-Qtr Return - 11.7% 1-Year Return - 22.2% Sector Information Technology Exxon Mobil Corp 1.91% 13.1% 16.8% Energy Microsoft Corp 1.91% -6.7% 19.1% Information Technology Johnson & Johnson 1.64% 12.9% 28.2% Health Care General Electric Co 1.43% -0.2% 22.3% Industrials Amazon.com Inc 1.37% 20.5% 64.9% Consumer Discretionary Berkshire Hathaway Inc B 1.35% 2.1% 6.4% Financials AT &T Inc 1.31% 11.7% 28.4% Telecommunication Services Facebook Inc A 1.26% 0.2% 33.2% Information Technology Verizon Communications Inc 1.12% 4.3% 25.6% Telecommunication Services rrr r Weight 0.00% Linkedln Corp Class A 0.11% 65.5% -8.4% Information Technology Denbury Resources Inc 0.00% 61.7% - 42.6% Energy ONEOK Inc 0.05% 61.7% 29.8% Energy Rice Energy Inc 0.01% 59.8% 11.4% Energy Memorial Resource Development Corp 0.01% 56.0% - 16.3% Energy Southwestern Energy Co 0.02% 55.9% - 44.7% Energy Zillow Group Inc C 0.02% 52.9% N/A Information Technology Yelp Inc Class 0.01% 52.7% - 29.4% Information Technology Continental Resources Inc 0.02% 1 49.1% 6.8% Energy Tahoe Resources Inc 0.02% 1 48.7% 1 26.1% 1 Materials Bottom Russell rr SunEdison Inc r Weight 0.00% e -73.8% Quarter) -99.5% Information Technology Cobalt International Energy Inc 0.00% - 54.9% - 86.2% Energy Office Depot Inc 0.00% - 53.4% -61.8% Consumer Discretionary LendingClub Corp 0.00% - 48.2% -70.8% Financials Endo International PLC 0.02% - 44.6% - 80.4% Health Care lonis Pharmaceuticals Inc 0.01% -42.5% -59.5% Health Care Square IncA 0.00% -40.8% N/A Information Technology CVR Energy Inc 0.00% - 39.1% - 55.9% Energy Fossil Group Inc 0.00% -35.8% - 58.9% Consumer Discretionary VeriFone Systems Inc 0.01% 34.3% 45.4% Information Technology The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2016 �PSN THIE Source: Morningstar Direct 5 [ BOGDAHN `� GROUP Olin Corp 0.25% 44.3% -3.8% Materials Idacorp Inc 0.25% 9.8% 49.2% Utilities Portland General Electric Co 0.24% 12.6% 37.4% Utilities Gramercy Property Trust 0.24% 9.1% 21.7% Financials Curtiss - Wright Corp 0.23% 11.5% 17.1% Industrials Southwest Gas Corp 0.23% 20.3% 52.1% Utilities Microsemi Corp 0.23% - 14.7% -6.5% Information Technology Healthcare Realty Trust Inc 0.22% 14.4% 57.2% Financials Medical Properties Trust Inc 0.22% 19.0% 24.8% Financials WGL Holdings Inc 0.22% -1.5% 34.5% Utilities r Quarter) 1-Qtr 1-Year Sector Russell 20 rr fi - ��E Return Return dM Magnum Hunter Resources Corporation 0.00% 309559.2% 628.6% Energy Ultra Petroleum Corp 0.00% 253.4% - 85.9% Energy Ryerson Holding Corp 0.01% 214.7% 92.3% Materials Clayton Williams Energy Inc 0.01% 207.8% - 58.2% Energy Fairmount Santrol Holdings Inc 0.03% 207.2% -5.9% Energy Celator Pharmaceuticals Inc 0.06% 173.6% 1247.3% Health Care EZCORP Inc 0.02% 154.5% 1.7% Financials North Atlantic Drilling Ltd 0.00% 146.0% - 43.4% Energy Eclipse Resources Corp 0.01% 131.9% -36.5% Energy Radio One Inc Class D 0.00% 124.6% 0.6% Consumer Discretionary 01 Bottom r Quarter) Qtr ell 200 Weight Code Rebel Corp 0.00% - 98.9% -99.8% Information Technology Energy XXI Ltd 0.00% -92.8% - 98.3% Energy Seventy Seven Energy Inc 0.00% - 84.1% - 97.9% Energy Fairway Group Holdings Corp A 0.00% -81.5% - 98.2% Consumer Staples The JG Wentworth Co Class A 0.00% -79.1% - 97.2% Financials Infinity Pharmaceuticals Inc 0.00% -74.8% - 87.9% Health Care Mirati Therapeutics Inc 0.00% -74.5% - 82.7% Health Care TransEnterix Inc 0.01% - 71.3% - 59.3% Health Care Lipocine Inc 0.00% -70.0% - 64.6% Health Care Chiasma Inc 0.00% - 68.4% N/A I Health Care �PSN THIE Source: Morningstar Direct 5 [ BOGDAHN `� GROUP ■ Similar to domestic equity markets, the 2nd quarter was volatile for international stocks as broad developed market indices struggled throughout the quarter. Currency impact on returns was mixed during the quarter with the EM Latin America Index benefiting from a weakening USD, and the Europe and Middle East Index suffering from USD strength. For the 1 -year period, returns for developed markets were negative in both USD and local currency. While the quarter began positively as markets pushed higher on the back of better than expected economic data and rising commodity prices, the second half of the quarter saw international markets swoon. Much of this was due to uncertainty leading up to the U.K.'s June 23rd referendum to remain in or move to leave the EU. British voters surprised investors by voting to discontinue membership in the economic bloc. While the terms and aggregate impact of "Brexit" will remain unknown for some time, the reaction to the vote was immediate. The pound sterling fell sharply ( -12 %), Standard & Poor's downgraded the U.K.'s AAA credit rating, and U.K. Prime Minister David Cameron resigned. While U.K. equity markets initially suffered sharp losses, markets recovered quickly as investors weighted the benefits of a weakened pound on the country's largely foreign earnings base. ■ The U.K.'s decision to leave the EU cast a shadow over European equities for the quarter despite the region's generally positive economic data. While the European Central Bank (ECB) has signaled its intent for continued support, the EU faces concerns surrounding "Brexit's" effect on future growth, as well as a political contagion that could lead other members to leave the economic union. Japanese equities fell sharply through the quarter as the Bank of Japan (BoJ) bucked market expectations when they did not announce an extension to its negative interest rate policy or asset purchase program. The subsequent "Brexit" decision led to a sharp appreciation in the yen, raising additional concerns around future earnings growth potential for Japanese equities. ■ Broad emerging market indices were modestly positive throughout the quarter, outperforming developed markets. Latin America was the best performing region on both a USD and local currency basis as the region benefitted from political tailwinds in Brazil and rising commodity prices. Russia, India, and the Philippines were also notable positive performers. Emerging European countries were laggards relative to emerging peers in Asia and Latin America. Performance for the MSCI Emerging Markets Index (net) remains negative in both local ( -7.7 %) and USD (- 12.1 %) terms over the trailing 1 -year period. The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2016 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) Quarter Performance ❑USD ❑ Local Currency -0.6% 0.1 /- 0.4% 1. -0.7% -2.7% 1.2° 0.9 % -4.3% 0.7% 0.7% -13 -1.7° 0.3 1.0% 5.3 °/ 2.1 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 1 -Year Performance I oUSD ❑Local Currency AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) - 17.9% C Emerging Mkt (23) EM EM EA (10) -1 EM Asia (8) EM Latin Amer (5) -10.2% C -9.2% -9.8% -9.6% -10.2% - 10.2% - 11.2% 5.9% -8.2% IIIIIIIN- -12.1% -7.7% OF- -3.7% -12.2% -9.8% -7.6% _0.2% -20.0% -15.0% -10.0% -5.0% 0.0% TIik: Source: MSCI Global Index Monitor (Returns are Net) 6 B OGDAH N GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 12.1% -8.4% -17.7% Consumer Staples 13.3% 2.9% 10.1% Energy 5.2% 11.3% -2.4% Financials 22.3% -6.6% -23.2% Health Care 12.4% 4.7% -2.2% Industrials 13.3% -1.5% -5.4% Information Technology 5.4% -2.7% -8.0% Materials 6.9% 1.2% -15.7% Telecommunication Services 5.2% -0.3% -3.7% Utilities Total 3.9% 100.0% 1.6% -0.2% -23.3% Sweden 2.8% 2.0% Consumer Discretionary 11.3% -6.9% -15.9% Consumer Staples 11.6% 2.8% 7.5% Energy 6.9% 8.1% -5.7% Financials 24.4% -4.3% -19.9% Health Care 9.4% 4.3% -6.5% Industrials 11.3% -1.8% -7.2% Information Technology 9.0% 0.1% -5.3% Materials 7.1% 3.1% -12.1% Telecommunication Services 5.3% -0.2% -6.9% Utilities 3.6% 1.5% -2.0% WF 2.9% 2.1% -7.7% Consumer Discretionary 10.5% -1.4% -10.5% Consumer Staples 8.5% 4.2% -3.6% Energy 7.5% 1.9% -12.7% Financials 26.1% 0.3% -17.8% Health Care 2.7% 0.4% -7.5% Industrials 6.2% -3.3% -19.0% Information Technology 22.5% 2.5% -4.0% Materials 6.3% -0.8% -9.5% Telecommunication Services 6.6% -0.1% -15.6% Utilities Total 3.2% 100.0% 0.5% -10.0% Spain 2.9% 2.1% -7.7% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of June 30, 2016 Japan SCI-EAFMIWSCI-ACWIXUS 23.3% 16.4% IF 1.0% e3 -8.9% United Kingdom 19.6% 13.8% -0.7% -12.1% France 9.6% 6.8% -4.3% -8.9% Switzerland 9.3% 6.6% 2.0% -8.5% Germany 8.7% 6.1% -5.6% -11.6% Australia 7.3% 5.1% 0.5% -4.5% Hong Kong 3.3% 2.3% 0.9% -10.8% Netherlands 3.2% 2.2% -5.1% -7.8% Spain 2.9% 2.1% -7.7% -23.3% Sweden 2.8% 2.0% -5.4% -12.2% Denmark 2.0% 1.4% -0.6% 2.5% Italy 2.0% 1.4% -10.5% -26.1% Belgium 1.5% 1.1% 2.3% 4.5% Singapore 1.4% 1.0% 0.4% -11.5% Finland 1.0% 0.7% -2.1% -3.9% Israel 0.8% 0.6% -3.8% -11.1% Norway 0.6% 0.5% 2.4% -16.2% Ireland 0.5% 0.3% -9.9% -10.5% New Zealand 0.2% 0.1% 5.9% 29.7% Austria 0.2% 0.1% -10.0% -12.9% Portugal 0.2% 0.1% -2.8% -7.5% Canada Total Developed Countries 6.8% 77.4% 3.4% r -6.3% -9.8% China 5.8% 0.1% -23.4% Korea 3.3% -1.2% -3.5% Taiwan 2.7% 0.7% -8.8% India 1.9% 3.7% -6.5% South Africa 1.7% 1.6% -15.9% Brazil 1.6% 13.9% -6.0% Mexico 0.9% -7.0% -12.2% Russia 0.9% 4.1% -1.6% Malaysia 0.7% -5.9% -6.0% Indonesia 0.6% 4.1% 6.0% Thailand 0.5% 2.8% -7.1% Philippines 0.4% 5.8% 1.0% Turkey 0.3% -7.9% -10.1% Chile 0.3% 1.9% -1.7% Poland 0.3% -17.5% -27.0% Qatar 0.2% -4.9% -17.2% United Arab Emirates 0.2% 0.1% -14.9% Colombia 0.1% 2.9% -12.4% Peru 0.1% 18.2% 8.3% Greece 0.1% -14.0% -60.8% Hungary 0.1% -4.7% 20.5% Czech Republic 0.0% -6.1% -18.3% Egypt 0.0% 0.9% -23.8% r r TtiE Source: MSCI Global Index Monitor (Returns are Net in USD) 7 BOGDAHN `� GROUP ■ Despite being investors' least favorite asset class for some time, fixed income indices continued their strong 2016 performance through the 2nd quarter of the year. Early quarter headwinds triggered by hawkish comments from Federal Reserve Chair Janet Yellen implying a summer interest rate hike dissipated as weaker economic data created doubts that the economy was robust enough to warrant further monetary policy tightening. Expectations for a near -term increase of the Fed Funds Rate shrank further after the U.K.'s vote to leave the EU. This news caused a swift flight to quality, pushing interest rates lower through the second half of the quarter. While near -term rates had little room to move lower, long- term rates fell to near historic lows. This curve flattening helped longer duration indices such as the Barclays U.S. Corporate Investment Grade Index and the Barclays Global Aggregate ex U.S. Index to outperform, returning 3.6% and 3.4% respectively. Fixed income performance for the 1 -year period was also positive across the country, credit, and sector spectrums with international bond indices, such as the Barclays Global Aggregate ex U.S. (11.2 %) and the Barclays Multiverse (8.6 %), generating the highest returns ■ U.S. investment grade bond indices posted gains for the quarter with the broad market Barclays Aggregate Index posting a return of 2.2 %. Higher duration index sectors within the Aggregate outperformed lower duration sectors with investment grade corporates (3.6 %) and Treasury securities (2.1 %) posting the largest gains. Hurt by its relatively low duration, the Barclays U.S. Mortgage Index performed the worst for the second quarter in a row, returning 1.1 %. Over the 1 -year period, the Aggregate has returned an expectation defying 6.0 %. Similar to the quarterly results, investment grade corporates and Treasuries outperformed mortgages for the period. ■ Lower credit quality issues outperformed higher quality securities during the 2nd quarter. Baa rated securities returned 4.3% versus a return of 1.7% for AAA issues due to higher average durations and the compression of interest rate credit spreads throughout the quarter. Driven by this spread compression, high yield bonds were the best performers with the Barclays U.S. High Yield Index returning 5.5 %. Despite its strong start to 2016, the Barclays U.S. High Yield Index is only marginally positive over the last 12 months with a return of 1.6 %. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of June 30, 2016 AAA (4.7) AA (6.4) A (7.6) Baa (7.6) U.S. High Yield (4.3) U.S. Treasury (6.4) U.S. Mortgage (2.5) U.S. Corporate IG (7.5) U.S. TIPS (5.3) Aggregate (5.5) Intermediate Agg (3.6) Global Agg x US (8.0) Multiverse (6.7) Quarter Performance 1.7% 2.6% 3.1% 4.3% 15.5% 2.1% 3.6% 1.7% 2.2% wr 1.4% 3.4% 3.0% 0.0% 2.0% 1 -Year Performance AAA (4.7) AA (6.4) A (7.6) Baa (7.6) U.S. High Yield (4.3) U.S. Treasury (6.4) U.S. Mortgage (2.5) U.S. Corporate IG (7.5) U.S. TIPS (5.3) Aggregate (5.5) Intermediate Agg (3.6) Global Agg x US (8.0) Multiverse (6.7) 4.0% 6.0% 5.4% 7.1% 8.6% 6.9% 1.6% 6.2% 4.3% 7.9% 4.4% 6.0% 4.4% 11.2% 8.6% 0.0% 2.0% 4.0% 6.0% 8 8.0% 10.0% 12.0% THIS [� BOGDAHN `� GROUP ■ U.S. TIPS finished the 2nd quarter with a 1.7% return. The relatively strong return can be attributed to the longer end of the TIPS yield curve shifting lowering during the period as headline CPI (1.1 %) remains largely in check. The TIPS return for the 1 -year period is a solid 4.4 %. ■ In USD terms, international fixed income indices posted the largest gains for both the quarter and 1 -year periods. Despite the relatively low interest rates in international markets, with several government issues having negative yields, the Barclays Global Aggregate ex U.S. returned 3.4% for the quarter as the index benefitted from its higher average duration and mixed currency impact. The index's 11.2% return over the 1 -year period also outpaced domestic bond returns. ■ Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The 1-Year Trailing Market Rates' chart illustrates that the 10 -year Treasury yield (green line) fell over the quarter and is now at a 12 -month low. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread), which quantifies the additional yield premium that investors require to purchase and hold non - Treasury issues. When credit spreads widen (tighten), it is equivalent to interest rate increases (decreases) on corporate bond returns. After falling below 2.0% early in 2015, this spread rose throughout the remainder of the calendar year. While there was upside momentum in credit spreads early in 2016, they have narrowed by close to 1% since their high on February 11th. Despite an uptick from "Brexit" during June, this spread compression has benefited corporate bond returns. The lower graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. Treasury issues greater than two years ended the 2nd quarter at their lowest levels in the past 12- months while short -term rates are at the high end of their 12 -month range. ■ The Fed has stated future rate increases would be implemented at a measured pace and with an ongoing assessment of current economic data. Despite this domestic policy assertion, geopolitical events and non - U.S. stimulus programs are likely to keep demand for U.S. Treasury issues elevated and exert downward pressure on how high domestic interest rates will rise in the short -term. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2016 1 -Year Trailing Market Rates 0.00 I I 1 0 Wi r Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 9/30/2015 -- 12/31/2015 o 3/31/2016 6/30/2016 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr �� THE Source: US Department of Treasury B FRED (Federal Reserve of St. Louis) 9 IJOGDAl 7� 1 N GROUP Our Mission To represent the sole interest of our clients by redefining independence. About Us The Bogdahn Group is an independent investment consulting firm that advises over 530 institutional clients with approximately $64 billion in assets under advisement. We are an independent firm, employee owned, and serve as a fiduciary to each of our clients. Our firm receives 100% of our revenue through hard - dollar fees for consulting services. We have never engaged in soft- dollar fee arrangements and are not affiliated with any Investment Management firms or other service providers. Our firm believes that trust, integrity, confidence, and respect are the cornerstones of any successful business relationship. As a result, we work to ensure our client's interests are placed first. Our objective is to serve as our client's advocate and guide in the implementation, maintenance, administration, and fiduciary oversight of their investment and retirement programs. Exceptional service, as defined by each client, is our goal. The Bogdahn Group, headquartered in Orlando, FL also has offices in Chicago, IL; Pittsburgh, PA; Tulsa, OK; Cleveland, OH; and Detroit, MI. 71 EMPLOYEES The Bogdahn Group Firm Overview MH a INSTITUTIONAL FOCUS 0 0 THE, Market Values as of March 2016. 10 BOGDAHN GROUP. Investment Consulting Services The Bogdahn Group has one line of business: investment consulting. We strive to simplify investment and fiduciary decisions for our clients by providing governance, monitoring and risk oversight, education, strategic implementation, and superior investment options. The Bogdahn Group delivers customized services to meet each client's unique needs. Since no two clients' needs are the same and continuously evolve overtime, we strive to maintain an ongoing understanding of each client's constraints and objectives to deliver ongoing value -added services. Our core services represent a strong foundation for client relationships. Traditional Consulting Service! • Investment policy statement development • Strategic asset allocation • Manager/ Strategy Evaluation • Investment Manager Due Diligence • Investment Manager Searches • Performance measurement & reporting • Quarterly Economic Summary • Attribution analysis • Client Education • Spending policy review and development • Vendor search & fee negotiations • Distribution and management of open RFPs where required • Custodian Evaluation • Interpretation and assistance in asset /liability reports Defined Contribution Consulting Services • Design, Distribute, Collect and Evaluate RFP responses for Recordkeeping and Administration Services • Facilitate the Vendor Selection Process and Interviews • Assist with provider scope of work definition, negotiation of fees and contracts • Investment Policy Development and Review • Manager /Strategy Evaluation • Plan Level Fee Analysis • Board /Investment Committee Education • Fund Evaluation and Recommendations • Review Employee Education Strategy for fit with Demographics and Plan Goals • Provide Guidance for Defined Contribution Strategies and Investment Decisions Retirement Plans - Public Funds - - Taft - Hartley - - Corporations - Endowment & Foundations The Bogdahn Group Firm Overview Client Service Support The Bogdahn Group's resources include dedicated teams comprised of: • 34 Investment Consultants • 8 Research Analysts • 7 Internal Consultants • 11 Performance Measurement Analysts • 3 Information Technology Experts The Bogdahn Group also has a dedicated management team consisting of professionals in compliance, finance, operations, and consulting services further supporting each department and ultimately each client. SERVICE MODEi_ i RNAL PERF07 JLTANt ANAL 1rD rl 70 Investment Databases Our firm utilizes some of the most robust and deep databases that are available to investment consultants. These include Bloomberg, InvestmentMetrics PARis, eVestment Alliance, Zephyr StyleADVISOR, Morningstar Direct, etc. TuiE BOGDAHN �� GROUP Asset Allocation By Segment as of March 31, 2016 : $3996419433 Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2016 Asset Allocation By Segment as of June 30, 2016 : $3999869062 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 19,799,027 49.9 _ Domestic Equity 20,327,433 50.8 m International Equity 5,363,250 13.5 m International Equity 5,065,963 12.7 • Domestic Fixed Income 7,123,726 18.0 ■ Domestic Fixed Income 7,028,993 17.6 • Global Fixed Income 1,178,212 3.0 ■ Global Fixed Income 1,165,853 2.9 • Other Fixed Income 1,242,577 3.1 ■ Other Fixed Income 1,179,439 2.9 7 Real Estate 4,542,034 11.5 7 Real Estate 4,581,096 11.5 Cash Equivalent 392,607 1.0 Cash Equivalent 636,275 1.6 THE 12 l[ BOGDAHN \� GROUP. Allocation Asset Allocation By Manager as of March 31, 2016 : $3996419433 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2016 Asset Allocation By Manager as of June 30, 2016 : $3999859052 Market Value Allocation Vanguard Total Stock Market (VITSX) 19,799,027 49.9 Vanguard Total Stock Market (VITSX) 20,327,433 50.8 RBC Global (Voyageur) 5,363,250 13.5 RBC Global (Voyageur) 5,065,963 12.7 d Galliard Core Fixed Income 4,640,688 11.7 d Galliard Core Fixed Income 4,722,752 11.8 — Intercontinental 2,573,029 6.5 ■ Intercontinental 2,616,834 6.5 • American Core Realty Fund 1,992,671 5.0 ■ American Core Realty Fund 1,988,289 5.0 • Vanguard Short Term Bond Index (VSCSX) 1,280,146 3.2 Galliard TIPS 1,225,121 3.1 Crescent Direct Lending Fund 1,242,577 3.1 Crescent Direct Lending Fund 1,179,439 2.9 Galliard TIPS 1,209,173 3.1 Templeton Global Bond Fund (FBNRX) 1,165,853 2.9 Templeton Global Bond Fund (FBNRX) 1,178,212 3.0 ■ Vanguard Short Term Bond Index (VSCSX) 1,094,954 2.7 Receipt & Disbursement 362,661 0.9 Receipt & Disbursement 598,414 1.5 PSN TuiE 13 [ BOGDAHN `-'O* GROUP Asset Allocation vs. Target Allocation Total Fund As of June 30, 2016 Asset Allocation vs. Target Allocation Total Domestic Equity 0.8% Total International Equity -2.3% Total Domestic Fixed Income 2.6% Total Global Fixed Income -2.1 % Total Real Estate 1.5% Total Other Fixed Income -2.1 % Receipt & Disbursement 1.5% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% qR Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation ( %) Target ( %) Total Domestic Equity 20,327,433 50.8 50.0 Total International Equity 5,065,963 12.7 15.0 Total Domestic Fixed Income 7,042,827 17.6 15.0 Total Global Fixed Income 1,165,853 2.9 5.0 Total Real Estate 4,605,123 11.5 10.0 Total Other Fixed Income 1,179,439 2.9 5.0 Receipt & Disbursement 598,414 1.5 0.0 Total Fund 39,985,052 100.0 100.0 T uk: 14 BOGDAHN GROUP. Historical Asset Allocation by Portfolio Total Equity Total Domestic Equity Vanguard Total Stock Market (VITSX) Total International Equity RBC Global (Voyageur) Total Fixed Income Total Domestic Fixed Income Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Global Fixed Income Templeton Global Bond Fund (FBNRX) Total Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Jun -2016 2.96 1,179,439 2.95 26,393,396 63.61 20,327,433 60.84 20,327,433 50.84 6,066,963 12.67 5,065,963 12.67 9,388,119 23.48 7,042,827 17.61 4,722,752 11.81 1,225,121 3.06 1,094,954 2.74 1,166,863 2.92 1,165, 853 2.92 1,179,439 2.96 1,179,439 2.95 4,606,123 11.62 1,988,289 4.97 2,616,834 6.54 698,414 1.60 39,986,062 100.00 Mar -2016 22,792,387 61.00 26,162,277 63.47 19,799,027 49.96 19,799,027 49.95 6,363,260 13.63 5,363,250 13.53 9,660,796 24.09 7,130,006 17.99 4,640,688 11.71 1,209,173 3.05 1,280,146 3.23 1,178,212 2.97 1,178,212 2.97 1,242,677 3.13 1,242,577 3.13 4,666,700 11.62 1,992,671 5.03 2,573,029 6.49 362,661 0.91 39,641,433 100.00 15 Dec -2016 22,792,387 61.00 24,130,792 61.71 18,729,194 47.90 18,729,194 47.90 6,401,698 13.81 5,401,598 13.81 9,378,800 23.99 7,248,447 18.64 4,722,477 12.08 1,166,900 2.98 1,359,069 3.48 1,187,481 3.04 1,187,481 3.04 942,872 2.41 942,872 2.41 4,618,286 11.66 1,970,208 5.04 2,548,078 6.52 1,072,868 2.74 39,100,736 100.00 Asset Allocation Asset Allocation History By Portfolio As of June 30, 2016 Sep -2016 808,409 2.16 37,361,690 100.00 Jun -2016 22,792,387 61.00 17,626,211 47.17 17,625,211 47.17 6,167,176 13.83 5,167,176 13.83 9,383,428 26.12 7,278,690 19.48 4,739,662 12.69 1,177,381 3.15 1,361,547 3.64 1,171,002 3.13 1,171,002 3.13 933,836 2.60 933,836 2.50 4,377,366 11.72 1,940,406 5.19 2,436,960 6.52 808,409 2.16 37,361,690 100.00 Jun -2016 24,762,609 63.33 19,006,878 48.60 19,005,878 48.60 6,766,631 14.72 5,756,631 14.72 9,243,721 23.64 7,228,926 18.49 4,690,720 12.00 1,184,688 3.03 1,353,518 3.46 1,267,614 3.22 1,257,514 3.22 767,281 1.94 757,281 1.94 3,691,619 9.44 1,336,827 3.42 2,354,792 6.02 1,406,318 3.69 39,103,168 100.00 _ [ Hk: BOGDAHN GROUP. Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 L' _ 9/07 3/08 9/08 Domestic Equity Other Fixed Income 3/09 9/09 3/10 International Equity Real Estate 9/10 3/11 9/11 Domestic Fixed Income Cash Equivalent M 3/12 9/12 3/13 Global Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To June 30, 2016 9/13 3/14 9/14 3/15 9/15 6/16 PSN TuiE Q BOGDAHN � GROUP Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of June 30, 2016 68.0 60.0 52.0 O 44.0 36.0 0 0 28.0 0 a 20.0 O 12.0 4.0 O O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 50.84 (19) 12.67 (65) 17.61 (89) 2.92 (81) 2.95 (86) 11.52 (16) 1.50 (41) 5th Percentile 56.82 25.50 46.56 8.97 32.66 13.54 6.43 1 st Quartile 49.28 18.94 35.60 5.08 17.80 10.62 2.22 Median 42.19 13.78 30.17 4.61 11.10 7.35 1.23 3rd Quartile 33.23 11.14 22.97 3.71 5.11 5.37 0.58 95th Percentile 19.09 7.41 14.02 0.18 1.29 2.86 0.07 THk: 17 BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2016 Financial Reconciliation Quarter to Date 18 ^\ THk: BOGDAHN GROUP. Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 04/01/2016 Transfers Fees Expenses Deprec. 06/30/2016 Total Equity 25,162,277 12,166 - 12,166 -888 174,781 57,226 25,393,396 Total Domestic Equity 19,799,027 - - - 89,220 439,186 20,327,433 Vanguard Total Stock Market (VITSX) 19,799,027 - - - 89,220 439,186 20,327,433 Total International Equity 5,363,250 12,166 - 12,166 -888 85,561 - 381,960 5,065,963 RBC Global (Voyageur) 5,363,250 12,166 - 12,166 -888 85,561 - 381,960 5,065,963 Total Fixed Income 9,550,795 - 268,178 -3,354 -150 16,189 92,816 9,388,119 Total Domestic Fixed Income 7,130,006 - 196,646 -3,354 -150 7,796 105,175 7,042,827 Galliard Core Fixed Income 4,640,688 3,354 -3,354 - - 82,064 4,722,752 Galliard TIPS 1,209,173 - - -150 1,715 14,383 1,225,121 Vanguard Short Term Bond Index (VSCSX) 1,280,146 - 200,000 - 6,081 8,727 1,094,954 Total Global Fixed Income 1,178,212 -8,394 8,394 - 12,359 1,165,853 Templeton Global Bond Fund (FBNRX) 1,178,212 -8,394 8,394 - 12,359 1,165,853 Total Other Fixed Income 1,242,577 - 63,138 - - 1,179,439 Crescent Direct Lending Fund 1,242,577 - 63,138 - - - 1,179,439 Total Real Estate 4,565,700 - 23,666 -9,846 54,072 18,863 4,605,123 American Core Realty Fund 1,992,671 - 23,666 -5,485 29,512 -4,743 1,988,289 Intercontinental 2,573,029 - - - -4,361 - 24,560 23,606 2,616,834 Receipt & Disbursement 362,661 279,678 592,232 - 617,412 - - 18,922 177 - 598,414 Total Fund Portfolio 39,641,433 - 592,232 - 617,412 - 25,366 - 19,960 245,220 168,905 39,985,052 18 ^\ THk: BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2015 To June 30, 2016 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2015 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec./ Deprec. Market Value 06/30/2016 Total Equity 22,792,387 838,082 - 38,082 -2,731 431,363 1,372,377 25,393,396 Total Domestic Equity 17,625,211 800,000 - - 284,794 1,617,428 20,327,433 Vanguard Total Stock Market (VITSX) 17,625,211 800,000 - - 284,794 1,617,428 20,327,433 Total International Equity 5,167,176 38,082 - 38,082 -2,731 146,569 - 245,051 5,065,963 RBC Global (Voyageur) 5,167,176 38,082 - 38,082 -2,731 146,569 - 245,051 5,065,963 Total Fixed Income 9,383,428 - 319,083 - 10,369 - 14,975 61,354 287,763 9,388,119 Total Domestic Fixed Income 7,278,590 -493,259 - 10,144 -443 26,977 241,106 7,042,827 Galliard Core Fixed Income 4,739,662 - 193,259 - 10,144 - - 186,493 4,722,752 Galliard TIPS 1,177,381 - - -443 5,867 42,316 1,225,121 Vanguard Short Term Bond Index (VSCSX) 1,361,547 - 300,000 - 21,110 12,297 1,094,954 Total Global Fixed Income 1,171,002 - 29,301 29,301 -5,150 1,165,853 Templeton Global Bond Fund (FBNRX) 1,171,002 - 29,301 - - 29,301 -5,150 1,165,853 Total Other Fixed Income 933,836 203,477 -225 - 14,532 5,076 51,807 1,179,439 Crescent Direct Lending Fund 933,836 203,477 -225 - 14,532 5,076 51,807 1,179,439 Total Real Estate 4,377,366 - 69,864 - 56,390 160,476 193,537 4,605,123 American Core Realty Fund 1,940,406 - 69,864 - 16,430 87,426 46,753 1,988,289 Intercontinental 2,436,960 - - - 39,960 - 73,050 146,784 2,616,834 Receipt & Disbursement 808,409 -449,135 2,096,976 - 1,805,835 - - 52,321 320 - 598,414 Total Fund Portfolio 37,361,590 - 2,096,976 - 1,805,835 - 104,841 - 70,027 653,513 1,853,677 39,985,052 m THk: BOGDAHN GROUP. Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of June 30, 2016 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 0.98 7.81 6.29 1.94 Total Fund Policy 1.73 5.06 6.89 Total Fund (New Mgrs) (Net) 0.98 1.94 6.29 8.07 Total Fund Policy 1.73 (26) 6.89 (6) Total Fund (Gross) 1.05 (93) 6.58 (26) Total Fund Policy 1.73 (58) 6.89 (18) All Public Plans -Total Fund Median 1.83 1.94 5.72 8.07 Total Fund (New Mgrs) (Gross) 1.05 (93) 6.58 (26) Total Fund Policy 1.73 (58) 6.89 (18) All Public Plans -Total Fund Median 1.83 5.72 (43) Total Equity 0.92 2.14 7.63 11.13 Total Equity Policy 1.76 7.87 Total Domestic Equity 2.67 (34) 10.34 (32) Total Domestic Equity Policy 2.63 (36) 10.12 (35) IM U.S. Large Cap Core Equity (SA +CF) Median 2.13 3.15 8.69 2.86 Total International Equity -5.53 (98) -1.91 (82) MSCI EAFE Index -1.19 (46) 0.52 (54) IM International Large Cap Value Equity (SA +CF) Median -1.40 (100 1.06 Total Fixed Income -4.14 x.22 0.44 Total Fixed Policy 11.26 (1) 3.25 (37) Total Domestic Fixed Income 1.62 (62) 3.82 (91) Total Domestic Fixed Policy 1.44 (66) 3.25 (93) IM U.S. Large Cap Core Equity (SA +CF) Median 2.13 12.63 8.69 13.41 Total Global Fixed Income -0.34 (100) 2.06 (94) Total Global Fixed Income Policy 3.41 (9) 9.39 (3) IM Global Fixed Income (MF) Median 2.39 5.41 Total Real Estate 1.61 (96) 8.19 (56) NCREIF Fund Index -ODCE (VVV) 2.13 (74) 7.87 (71) IM U.S. Open End Private Real Estate (SA +CF) Median 2.54 8.24 1.25 (100) 7.81 (67) 11/01/2000 1.94 8.32 8.07 5.06 1.25 7.81 1.94 (73) 8.07 8.32 1.59 (26) 8.15 (6) 1.94 (16) 8.07 (7) 0.56 8.32 6.72 5.06 1.59 (26) 8.15 (6) 1.94 (16) 8.07 (7) 0.56 5.33 6.72 10/01/2007 -0.93 (2) 9.36 (7) -0.68 9.13 2.32 (43) 11.09 (57) 2.14 (45) 11.13 (56) 1.58 11.35 -11.94 (76) 3.99 (29) -9.72 (51) 2.52 (55) -9.67 3.04 3.15 2.86 4.36 3.24 4.53 (24) 3.14 (100 4.36 (24) 3.24 (100 1.58 11.35 -4.14 (100) 0.44 (89) 11.26 (1) 2.65 (37) 4.71 2.16 11.99 (76) 13.27 (60) 11.84 (77) 13.00 (63) 12.63 13.41 6.62 (100) 5.27 (67) 11/01/2000 11/01/2000 8.32 5.76 5.06 9.41 7.70 4.77 (73) 10/01/2007 8.32 11.60 5.70 4.49 (94) 8.22' (4) 5.91 (21) 11/01/2000 8.32 (2) 5.06 2.15 (58) 6.62 (99) 5.43 4.66 8.22 (4) 5.33 (17) 10/01/2007 8.32 (2) 5.70 (7) 6.62 (100) 4.73 (67) 11/01/2000 9.40 mmmoml 5.76 01/01/2001 9.41 4.52 10.70 (73) 5.89 (39) 11/01/2000 11.60 (54) 4.49 (94) 11.73 5.45 5.30 (13) 5.19 (68) 11/01/2000 2.15 (58) 3.52 (99) 2.69 5.73 3.11 2.96 5.05 ifivilliv KQQ11 3.05 (100) 5.06 (67) 11/01/2000 2.96 (100) 5.05 (68) 11.73 5.45 N/A 3.32 (30) 12/01/2011 N/A 0.99 (80) 2.04 2.43 13.71 (39) =4 (37) 10/01/2007 12.72 (68) 4.64 11 13.35 4.66 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. H Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent resented on IRR page. 20 BOGDA` -N p p p 9 p 9 p p 9 �I GROUP Comparative Performance Trailing Returns Total Fund As of June 30, 2016 QTR FYTD 1 YR 3 YR 6 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 2.67 (20) 10.13 (16) 2.13 (19) 11.07 (18) N/A 12.10 (19) 03/01/2013 Vanguard Total Stock Market Index Hybrid 2.69 (20) 10.13 (16) 2.14 (19) 11.09 (17) 11.61 (11) 12.14 (18) IM U.S. Multi -Cap Core Equity (MF) Median 1.42 6.50 -2.12 9.08 9.57 10.40 RBC Global (Voyageur) -5.53 (98) -1.91 (82) -11.94 (76) 3.99 (29) 5.30 (13) 1.44 (25) 11/01/2007 MSCI EAFE Index -1.19 (46) 0.52 (54) -9.72 (51) 2.52 (55) 2.15 (58) -1.16 (75) IM International Large Cap Value Equity (SA +CF) Median -1.40 1.06 -9.67 3.04 2.69 -0.26 Galliard Core Fixed Income 1.77 (31) 4.05 (16) 5.14 (13) 3.61 (26) 3.50 (31) 4.45 (65) 10/01/2007 Barclays Intermediate Aggregate Index 1.44 (71) 3.25 (75) 4.36 (59) 3.24 (49) 2.96 (73) 4.32 (76) IM U.S. Intermediate Duration (SA +CF) Median 1.58 3.52 4.46 3.22 3.23 4.62 Galliard TIPS 1.33 (81) 4.09 (86) 3.46 (64) 1.75 (68) 1.58 (77) 3.62 (91) 10/01/2007 Barclays U.S. TIPS 1 -10 Year 1.32 (84) 4.23 (82) 3.33 (76) 1.63 (80) 1.55 (85) 3.69 (90) IM U.S. TIPS (SA +CF) Median 1.69 5.46 4.23 2.32 2.65 4.52 Vanguard Short Term Bond Index (VSCSX) 1.32 (43) 2.90 (23) 3.51 (15) N/A N/A 2.89 (11) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index 1.39 (32) 2.79 (28) 3.38 (15) 2.82 (10) 2.91 (19) 2.94 (10) IM U.S. Intermediate Investment Grade (MF) Median 1.26 2.26 2.49 1.94 2.14 2.14 Templeton Global Bond Fund (FBNRX) -0.34 (100) 2.08 (94) -4.12 (100) 0.45 (89) N/A 3.33 (30) 12/01/2011 Citigroup World Government Bond Index 3.41 (9) 9.39 (3) 11.26 (1) 2.65 (37) 1.18 (69) 0.99 (80) IM Global Fixed Income (MF) Median 2.39 5.41 4.71 2.16 2.04 2.43 American Core Realty Fund 1.26 (100) 7.08 (95) 10.64 (100) 12.39 (82) 12.15 (77) 4.35 (76) 10/01/2007 American Core Realty Policy 2.18 (72) 8.26 (47) 12.19 (73) 13.00 (63) 12.67 (68) 6.93 (6) IM U.S. Open End Private Real Estate (SA +CF) Median 2.54 8.24 12.63 13.41 13.35 4.66 Intercontinental 1.87 (85) 9.06 (40) 13.06 (35) 13.71 (44) 14.42 (34) 14.69 (39) 10/01/2010 NCREIF Fund Index -ODCE 2.13 (74) 7.87 (71) 11.84 (77) 13.00 (63) 12.72 (68) 13.57 (73) IM U.S. Open End Private Real Estate (SA +CF) Median 2.54 8.24 12.63 13.41 13.35 13.95 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. R n HST Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent resented on IRR page. 21 �-+OGLA` _1 p p p 9 p 9 p p 9 �I GROUP Comparative Performance - IRR Crescent Direct Lending Fund QTR 0.00 1 YR 6.11 Comparative Performance - IRR Inception 4.98 As of June 30, 2016 Inception Date 10/14/2014 PSN TuiE 22 i BOGDAHN `-'O* GROUP Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2016 Comparative Performance Fiscal Year Returns Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 FYTD To To To To To To To To To Sep -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Total Fund (Net) 6.29 (33) 0.33 (27) 11.86 (13) 16.72 (6) 18.96 (27) -1.17 (81) 10.67 (32) 0.70 (66) -16.84 (93) 13.03 (72) Total Fund Policy 6.89 (18) 0.55 (23) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.72 -0.53 10.17 12.51 17.97 0.17 9.91 1.62 -12.93 14.05 Total Fund (New Mgrs) (Net) 6.29 (33) 0.33 (27) 11.85 (13) 15.72 (6) 18.95 (27) -1.17 (81) 10.66 (32) 0.68 (65) -16.82 (93) N/A Total Fund Policy 6.89 (18) 0.55 (23) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.72 -0.53 10.17 12.51 17.97 0.17 9.91 1.62 -12.93 14.05 Total Fund (Gross) 6.68 (26) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.46 (66) 11.40 (19) 1.43 (62) -16.48 (91) 13.92 (66) Total Fund Policy 6.89 (18) 0.55 (23) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.72 -0.53 10.17 12.51 17.97 0.17 9.91 1.62 -12.93 14.05 Total Fund (New Mgrs) (Gross) 6.58 (26) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (66) 11.40 (19) 1.39 (53) -16.46 (91) N/A Total Fund Policy 6.89 (18) 0.55 (23) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.72 -0.53 10.17 12.51 17.97 0.17 9.91 1.62 -12.93 14.05 Total Equity -1.62 W 116AW 23.09 1�27.08� -4.68 6.61 18.62 Total Equity Policy 7.87 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 10.34 (32) -0.59 (61) 17.58 (69) 21.85 (34) 27.76 (63) -3.30 (90) 14.19 (8) -4.29 (38) -21.66 (63) 17.58 (43) Total Domestic Equity Policy 10.12 (35) -0.49 (60) 17.76 (67) 21.60 (36) 30.20 (45) 0.55 (57) 10.96 (30) -6.91 (64) -21.98 (68) 16.44 (61) IM U.S. Large Cap Core Equity (SA +CF) Median 8.69 -0.02 19.25 20.58 29.76 1.14 9.48 -5.77 -20.44 16.97 Total International Equity -1.91 (82) -4.36 (21) 10.08 (9) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) MSCI EAFE Index 0.52 (54) -8.27 (45) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median 1.06 -8.92 5.75 22.91 15.14 -8.56 5.04 6.28 -27.34 23.87 Total Fixed Income 3.22 1.40 6.34, ' 4.67 9.27 ' 10.63 4.96 Total Fixed Policy 3.25 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income 3.82 (91) 2.31 (24) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (11) 9.27 (54) 10.53 (2) 0.64 (1) 4.96 (100) Total Domestic Fixed Policy 3.25 (93) 2.95 (19) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (14) 7.52 (78) 9.69 (2) 4.16 (1) 5.33 (99) IM U.S. Large Cap Core Equity (SA +CF) Median 8.69 -0.02 19.25 20.58 29.76 1.14 9.48 -5.77 -20.44 16.97 Total Global Fixed Income 2.06 (94) -7.63 (90) 6.31 (12) 3.53 (3) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy 9.39 (3) -3.83 (52) -0.07 (97) -4.60 (85) N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median 5.41 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 Total Real Estate 8.19 (66) 14.27 (66) 13.47 (39) 16.42 (20) 12.81 (64) 16.82 (77) 2.71 (77) -32.42 (36) 4.72 (38) N/A NCREIF Fund Index -ODCE 7.87 (71) 14.92 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) IM U.S. Open End Private Real Estate (SA +CF) Median 8.24 15.93 12.90 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 Returns for periods greater than one year are annualized. Returns are expressed as 10/1/2007 inception date represents the date new managers were hired. Total Fund percentages. Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Intercontiner THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 23 n [ BOGLAl 11 u�T `� GROUP Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA +CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Barclays Intermediate Aggregate Index IM U.S. Intermediate Duration (SA +CF) Median Galliard TIPS Barclays U.S. TIPS 1 -10 Year Vanguard Short Term Bond Index (VSCSX) Barclays U.S. Corporate 1 -5 Year Index IM U.S. Intermediate Investment Grade (MF) Median Templeton Global Bond Fund (FBNRX) Citigroup World Government Bond Index IM Global Fixed Income (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA +CF) Median Intercontinental NCREIF Fund Index -ODCE IM U.S. Open End Private Real Estate (SA +CF) Median Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2016 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 FYTD To To To To To To To To To Sep -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 N/A 8.78 (19) 6.06 -1.91 (82) 0.52 (54) 1.06 10.13 (16) 10.13 (16) 6.50 4.05 (16) 3.25 (75) 3.52 N/A (32) N/A (29) 3.17 (56) 19.15 (39) 3.68 12.08 18.12 -1.68 (95) -4.36 (21) 10.08 (9) -8.27 (45) 4.70 (64) -8.92 1.98 5.75 2.46 -0.59 (32) 17.77 (29) -0.55 (31) 17.77 (29) -1.79 12.08 16.04 -1.68 (95) 3.04 (25) 3.15 (37) 2.95 (30) 2.74 (57) 2.70 1.98 2.87 2.46 4.09 -0.38 4.23 -0.82 N/A (75) 33.21 (8) 19.27 (65) 29.19 (38) 20.31 12.08 27.62 -1.68 (95) 27.54 (17) 24.74 (3) 24.29 (41) 14.33 (54) 22.91 1.98 15.14 2.46 N/A N/A 21.60 (61) 30.28 (16) 22.85 26.50 -0.64 (75) 5.82 (46) -0.71 (78) 4.31 (83) -0.26 5.58 -1.17 (75) 11.93 (44) 3.78 (30) 12.65 (36) 1.37 12.08 11.31 -1.68 (95) -8.75 (53) 11.69 (15) -8.94 (55) 3.71 (67) -8.56 1.98 5.04 2.46 N/A (23) N/A -6.03 0.71 (23) 11.16 (29) -1.78 12.08 9.54 -1.68 (95) 4.16 (27) 9.63 (17) 4.22 (23) 7.52 (77) 3.60 1.98 8.25 2.46 0.59 -3.71 6.01 6.73 7.28 0.61 -3.90 6.32 7.19 7.40 0.53 (22) -15.13 (16) -1.85 (37) -20.88 (54) -3.03 -20.34 11.87 (20) N/A 3.80 (66) -30.13 (72) 6.28 -27.34 N/A (23) N/A -6.03 (56) -21.19 (30) -5.51 -22.84 12.08 (38) -1.68 (95) 9.69 (81) 4.16 (36) 11.51 N/A 3.26 N/A 19.35 (56) 20.19 N/A 25.38 (39) 23.87 N/A 16.98 (46) 16.55 N/A 5.33 (68) 5.47 3.97 7.72 N/A 4.02 7.89 5.32 2.90 (23) N/A N/A N/A N/A N/A N/A N/A N/A N/A 2.79 (28) 1.98 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) 16.02 (2) -2.84 (74) 5.04 (13) 2.26 1.21 1.72 -0.47 5.11 1.99 7.56 10.57 -0.36 4.26 2.08 (94) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A 9.39 (3) -3.83 (52) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 5.90 (6) 8.69 (31) 5.41 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 7.08 (95) 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) -32.42 (35) 4.72 (38) N/A 8.26 (47) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 5.27 (28) N/A 8.24 15.93 12.90 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 9.06 (40) 13.96 (68) 14.10 (34) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A 7.87 (71) 14.92 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) 8.24 15.93 12.90 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Intercontiner n u�T Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 24 [ HOGLAl 11 `� GROUP Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 14.00 12.00 10.00 8.00 6.00 E ' 4.00 0.63 K (8) 16.33 (4) 19.81 (14) -0.45 2.00 (19) • Total Fund Policy • - 0.00 (22) 15.00 -2.00 -4.00 -6.00 • I• 0 0 0 • ■ QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 1.05 (93) 6.58 (26) 1.59 (26) 3.03 (18) 8.15 (6) 10.39 (2) 8.22 (4) • Total Fund Policy 1.73 (58) 6.89 (18) 1.94 (16) 3.35 (11) 8.07 (7) 9.60 (6) 8.32 (2) Median 1.83 5.72 0.56 1.90 6.72 8.09 6.62 Comparative Performance Performance Review Total Fund Portfolio As of June 30. 2016 28.00 24.00 20.00 1 00 16.00 • 12.00 • • 0 c K 8.00 4.00 0.00 • • -4.00 ■ -8.00 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Total Fund Portfolio 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (66) 11.40 (19) • Total Fund Policy 0.55 (23) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) Median -0.53 10.17 12.51 17.97 0.17 9.91 2.58 (35) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Total Fund Portfolio 1.27 (35) 4.15 (5) -4.68 (38) 0.58 (12) 2.32 (61) 2.58 (35) Total Fund Policy 0.98 (53) 4.06 (6) -4.63 (35) 0.40 (19) 2.32 (60) 2.63 (34) All Public Plans -Total Fund Median 1.03 2.87 -5.04 -0.13 2.43 2.27 25 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 25.0 e Over °- 20.0 - Performance 0 0 15.0 - Q a 10.0 - LL 5.0 - 0 0.0 0.0 5.0 10.0 15.0 Total Fund Policy ( %) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 8.46 7.99 O 7.52 «' 7.05 v Performance Review Total Fund Portfolio As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years y0.0 (388000888008090 25.0 0008(3 - 0 0 c 50.0 is a 75.0 EL Under w Performance 100.0 1 20.0 25.0 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count e 6.58 6.11 5.36 5.44 5.52 5.60 5.68 5.76 5.84 5.92 6.00 Risk (Standard Deviation %) Return Standard Deviation O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 8.96 8.40 O 7.84 «' 7.28 v K 6.72 6.16 7.8 8.1 18 (90 %) 2 (10 %) 0 (0 %) 0 (0 %) 17 (85 %) 2 (10 %) 1 (5 %) 0 (0 %) 8.4 8.7 9.0 Risk (Standard Deviation %) Return W 9.3 Standard Deviation 9.6 • Total Fund Portfolio 8.15 5.89 O Total Fund Portfolio 8.22 9.39 O Total Fund Policy 8.07 5.52 O Total Fund Policy 8.32 8.22 Median 6.72 5.62 Median 6.62 8.37 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.09 102.43 108.46 -0.31 0.08 1.36 1.05 2.76 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 2.70 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.72 106.75 123.53 -1.08 0.01 0.89 1.13 5.77 Total Fund Policy 0.00 100.00 100.00 1.00 4.79 o PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 25.00 20.00 15.00 - 10.00 -4 00 5.00 v K 0.00 -5.00 -10.00 -15.00 -20.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 2.67 (20) 10.13 (16) 2.13 (19) 4.63 (15) 11.07 (18) N/A N/A • VG Total Stock Mkt Hybrid 2.69 (20) 10.13 (16) 2.14 (19) 4.64 (15) 11.09 (17) 13.62 (23) 11.61 (11) Median 1.42 6.50 -2.12 2.00 9.08 12.57 9.57 Comparative Performance Performance Review VG Total Stock Mkt (VITSX) As of June 30. 2016 44.00 36.00 0 28.00 20.00 =on v 12.00 K 4.00 -4.00 -12.00 -20.00 " J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG Total Stock Mkt (VITSX) -0.59 (32) 17.77 (29) N/A N/A N/A N/A • VG Total Stock Mkt Hybrid -0.55 (31) 17.77 (29) ?1.60 (61) 30.28 (16) 0.71 (23) 11.16 (29) Median -1.79 16.04 ?2.85 ?6.50 -1.78 9.54 27 THIS Q BOGDAHN � GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 VG Total Stock Mkt (VITSX) 0.95 (39) 6.26 (14) -7.26 (36) 0.09 (38) 1.81 (58) 5.20 (40) VG Total Stock Mkt Hybrid 0.95 (39) 6.25 (15) -7.26 (36) 0.08 (38) 1.81 (58) 5.24 (37) IM U.S. Multi -Cap Core Equity (MF) Median 0.36 4.85 -8.05 -0.15 2.18 4.65 27 THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 11.2 Over X Performance Y y 11.1 U O M N (A A O 0 11.0 11.0 11.1 VG Total Stock Mkt Hybrid (% ) Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 11.88 11.22 O 10.56 «' 9.90 v K 9.24 8 58 u Under Performance 11.2 11.20 11.28 11.36 11.44 11.52 11.60 Risk (Standard Deviation %) Return Standard Deviation 11.68 Performance Review VG Total Stock Mkt (VITSX) As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 w 25.0 O 00 00 O O Q O O O n v � 50.0 O! a 75.0 O! K 100.0 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 Total Period 5 -25 25- Median Median -75 Count Count Count lb VG Total Stock Mkt (VITSX) 2 O VG Total Stock Mkt Hybrid 20 Peer Group Scatterg ram - 5 Years 12.06 11.39 O 10.72 «' 10.05 v K 9.38 8.71 - 12.20 12.40 6/16 75 -95 Count 2(100%) 0 (0 %) 0 (0 %) 0 (0 %) 9(45%) 11 (55 %) 0 (0 %) 0 (0 %) 1 12.60 12.80 13.00 Risk (Standard Deviation %) Return Standard Deviation 13.20 • VG Total Stock Mkt (VITSX) 11.07 11.29 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 11.09 11.28 O VG Total Stock Mkt Hybrid 11.61 12.45 Median 9.08 11.60 Median 9.57 13.00 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) 0.03 99.95 100.04 -0.02 -0.50 0.98 1.00 6.28 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 0.99 1.00 6.27 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) N/A N/A N/A N/A N/A N/A N/A N/A VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 0.94 1.00 7.25 28 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 20.00 15.00 10.00 5.00 0 0.00 E v K 5.00 -10.00 -15.00 -20.00 44.00 36.00 28.00 20.00 12.00 c v K 4.00 -4.00 • -12.00 ■ -20.00 Performance Review RBC Global (Voyageur) As of June 30. 2016 -25.00 L_ -28.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • RBC Global (Voyageur) -5.53 (98) -1.91 (82) -11.94 (76) -7.00 (57) 3.99 (29) 10.03 (8) 5.30 (13) O RBC Global (Voyageur) -4.36 (21) 10.08 (9) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) • MSCI EAFE Index -1.19 (46) 0.52 (54) -9.72 (51) -6.82 (55) 2.52 (55) 6.44 (59) 2.15 (58) O MSCI EAFE Index -8.27 (45) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (67) Median -1.40 1.06 -9.67 -6.46 3.04 6.75 2.69 Median -8.92 5.75 22.91 15.14 -8.56 5.04 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 RBC Global (Voyageur) -0.69 (36) 4.56 (36) -10.23 (45) 1.78 (43) 6.14 (15) -1.39 (15) MSCI EAFE Index -2.88 (74) 4.75 (29) -10.19 (43) 0.84 (67) 5.00 (41) -3.53 (47) IM International Large Cap Value Equity (SA +CF) Median -1.78 3.92 -10.77 1.36 4.51 -3.86 ORA PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 40.0 Over Performance 30.0 v A 0 20.0 co O > 0 zpo n 10.0 o 0 U 0.0 m K -10.0 -10.0 0.0 10.0 20.0 MSCI EAFE Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 4.41 3.92 3.43 «' 2.94 2.45 O 1.96 1 1 1 11.10 11.40 11.70 12.00 12.30 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years 3.99 12.71 O RBC Global (Voyageur) 5.30 y 0.0 0 00 0 0 0 0 0 0 0 0 O MSCI EAFE Index 2.15 0 0 0 0 Median 3.04 0 00 Median 2.69 14.59 Historical Statistics - 3 Years w 25.0 Tracking O Down 50.0- OOOOOOOOOOOO Information Sharpe Downside Error v Market Alpha Ratio Ratio Beta O EL O O O O Capture O 103.87 95.49 1.62 0.29 0.35 E 75.0 - MSCI EAFE Index 100.00 100.00 r v K 1.00 8.39 Historical Statistics - 5 Years Ak Under 100.0 1 Tracking - Down Performance 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 1 Alpha Ratio Ratio Beta Risk 30.0 40.0 Capture 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count N 12.60 12.90 Standard Deviation lb RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 6.00 4.00 2.00 O 0 00 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) N 1 1 1 ! 13.20 13.65 14.30 14.95 15.60 16.25 16.90 17.55 Risk (Standard Deviation %) Return Standard Deviation 18.20 • RBC Global (Voyageur) 3.99 12.71 O RBC Global (Voyageur) 5.30 17.30 O MSCI EAFE Index 2.52 11.37 O MSCI EAFE Index 2.15 14.43 Median 3.04 11.47 Median 2.69 14.59 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.32 103.87 95.49 1.62 0.29 0.35 0.97 8.73 MSCI EAFE Index 100.00 100.00 1.00 8.39 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.36 111.73 96.90 3.22 0.60 0.39 1.02 10.94 MSCI EAFE Index 100.00 100.00 0.00 1.00 10.59 W THIS (7 BOGDAHN `� GROUP Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 6.95 6.26 5.57 U 4.88 O 4.19 • ' 3.50 v K 2.81 - 6 d 2.12 ■ 1.43 0.74 0.05 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 1.77 (31) 4.05 (16) 5.14 (13) 3.59 (15) 3.61 (26) 2.84 (35) 3.50 (31) • Barclays Int Agg Index 1.44 (71) 3.25 (75) 4.36 (59) 3.12 (48) 3.24 (49) 2.39 (73) 2.96 (73) Median 1.58 3.52 4.46 3.08 3.22 2.63 3.23 Comparative Performance 17.00 14.00 11.00 8.00 v K 5.00 2.00 1.00 Performance Review Galliard Core Fixed Inc As of June 30. 2016 i� -4.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Galliard Core Fixed Inc 3.04 (25) 3.15 (37) -0.64 (75) 5.82 (46) 4.16 (27) 9.63 (17) • Barclays Int Agg Index 2.95 (30) 2.74 (57) -0.71 (78) 4.31 (83) 4.22 (23) 7.52 (77) Median 2.70 2.87 -0.26 5.58 3.60 8.25 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Galliard Core Fixed Inc 2.54 (23) -0.29 (26) 1.04 (35) -0.64 (58) 1.51 (42) 1.10 (23) Barclays Int Agg Index 2.31 (55) -0.51 (65) 1.08 (30) -0.67 (62) 1.32 (79) 1.20 (17) IM U.S. Intermediate Duration (SA +CF) Median 2.33 -0.42 0.92 -0.61 1.47 0.92 ca PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 15.0 Over Performance U C w 10.0 ! r LL • G'll� U! O + U 5.0 'O A A 0 0.0 0.0 5.0 10.0 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 3.80 is 3.60 3.40 v 3.20 3.00 C Performance Review Galliard Core Fixed Inc As of June 30. 2016 1.76 1.78 1.80 1.82 1.84 1.86 Risk (Standard Deviation %) Return Standard Deviation 1 1.88 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.60 3.40 3.20 v 3.00 O 2.80 1.95 1.98 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 3 (15 %) 9 (45 %) 8 (40 %) 2.01 2.04 2.07 Risk (Standard Deviation %) Return X 2.10 Standard Deviation 2.13 • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 1.84 • Galliard Core Fixed Inc 3.50 � y � 0.0 1.77 •e•oo • Barclays Int Agg Index 2.96 1.98 Median 3.22 1.77 Median 3.23 2.01 Historical Statistics - 3 Years w 25.0 Q Up Down Information Sharpe O O Error Market Market Alpha Ratio Ratio Beta Risk Capture o U 50.0 Galliard Core Fixed Inc 0.36 0 0 0 0 0 0 1.02 p p 1.03 O Barclays Int Agg Index 0.00 100.00 0.00 1.00 0.76 Historical Statistics - 5 Years EL � 75.0 O o O 00 O 0 Tracking Q Down Information O Downside Error O O �O �O Ratio Ratio Beta Risk K Capture Capture Under 100.0 r r r r T-ii T r r Performance 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 15.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 1.76 1.78 1.80 1.82 1.84 1.86 Risk (Standard Deviation %) Return Standard Deviation 1 1.88 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.60 3.40 3.20 v 3.00 O 2.80 1.95 1.98 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 3 (15 %) 9 (45 %) 8 (40 %) 2.01 2.04 2.07 Risk (Standard Deviation %) Return X 2.10 Standard Deviation 2.13 • Galliard Core Fixed Inc 3.61 1.84 • Galliard Core Fixed Inc 3.50 2.10 • Barclays Int Agg Index 3.24 1.77 • Barclays Int Agg Index 2.96 1.98 Median 3.22 1.77 Median 3.23 2.01 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.36 105.33 91.45 0.26 1.02 1.73 1.03 0.76 Barclays Int Agg Index 0.00 100.00 0.00 1.00 0.76 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.46 108.49 89.65 0.47 1.12 1.65 1.02 1.02 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 0.98 32 THE (� BOGDAHN GROUP. Peer Group Analysis - IM U.S. TIPS (SA +CF) 8.00 6.00 17.00 14.00 11.00 8.00 4.00 O C' 5.00 v v 2.00 2.00-m -1.00 •� -4.00 0.00 -7.00 -10.00 Performance Review Galliard TIPS As of June 30. 2016 is -2.00 -13.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Galliard TIPS 1.33 (81) 4.09 (86) 3.46 (64) 0.84 (61) 1.75 (68) 0.54 (41) 1.58 (77) O Galliard TIPS -0.38 (20) 0.59 (85) -3.71 (10) 6.01 (98) 6.73 (96) 7.28 (94) • Barclays US TIPS 1 -10 Yr 1.32 (84) 4.23 (82) 3.33 (76) 0.66 (75) 1.63 (80) 0.41 (73) 1.55 (85) O Barclays US TIPS 1 -10 Yr -0.82 (56) 0.61 (80) -3.90 (18) 6.32 (91) 7.19 (84) 7.40 (94) Median 1.69 5.46 4.23 1.20 2.32 0.52 2.65 Median -0.79 1.56 -5.62 9.02 9.54 9.36 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Galliard TIPS 3.64 (69) -0.88 (98) -0.60 (7) -0.44 (28) 1.90 (2) -1.21 (91) Barclays US TIPS 1 -10 Yr 3.60 (75) -0.70 (80) -0.86 (25) -0.15 (18) 1.20 (89) -1.00 (85) IM U.S. TIPS (SA +CF) Median 4.32 -0.65 -1.12 -1.06 1.46 -0.14 33 THIS (F BOGDAHN GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over -- Performance 8.0 a_ ~ 4.0 v 70 0.0 4.0 1 -4.0 0.0 4.0 Barclays US TIPS 1 -10 Yr ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.70 2.40 Performance Review Galliard TIPS As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 °8 25.0 00 O c v 50.0 -� EL" O 75.0 O Under e06008800eeoO ®o Performance lJ 1 100.0 8.0 12.0 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 2.10 v 1.80 0 1.50 1 1 1 3.15 3.30 3.45 3.60 3.75 3.90 4.05 4.20 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 2.88 2.52 2.16 «' 1.80 1.44 co 1 1 1 4.35 3.64 3.90 4.16 4.42 4.68 4.94 5.20 Risk (Standard Deviation %) Return Standard Deviation 2 (10 %) 2 (10 %) 2 (10 %) 14 (70 %) 1 (5 %) 1 (5 %) 2 (10 %) 16 (80 %) 5.46 • Galliard TIPS 1.75 3.44 • Galliard TIPS 1.58 3.92 O Barclays US TIPS 1 -10 Yr 1.63 3.29 • Barclays US TIPS 1 -10 Yr 1.55 3.86 Median 2.32 4.07 Median 2.65 5.22 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.00 98.81 95.00 0.05 0.13 0.48 1.05 2.03 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 1.00 1.99 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.85 99.05 97.85 0.01 0.04 0.42 1.02 2.40 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 34 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 4.98 4.40 3.82 3.24 2.66 E ' 2.08 v K 1.50 0.92 0.34 -0.24 -0.82 0 I j 1 1 1 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of June 30. 2016 17.00 14.00 11.00 8.00 E ' 5.00 v K 2.00 -1.00 -4.00 -7.00 1 1 1 1 1 1 1 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.98 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) Median 1.21 1.72 -0.47 5.11 1.99 7.56 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 1.32 (43) 2.90 (23) 3.51 (15) N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.39 (32) 2.79 (28) 3.38 (15) 2.34 (10) 2.82 (10) 2.75 (12) 2.91 (19) Median 1.26 2.26 2.49 1.57 1.94 1.70 2.14 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of June 30. 2016 17.00 14.00 11.00 8.00 E ' 5.00 v K 2.00 -1.00 -4.00 -7.00 1 1 1 1 1 1 1 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.98 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) Median 1.21 1.72 -0.47 5.11 1.99 7.56 35 PSN THIS Q BOGDAHN � GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 VG ST Bond Index (VSCSX) 1.75 (33) -0.18 (6) 0.59 (28) -0.22 (34) 1.04 (56) N/A Barclays US Corp 1 -5 Yr Index 1.76 (33) -0.37 (24) 0.58 (29) -0.21 (34) 1.24 (22) 0.36 (36) IM U.S. Intermediate Investment Grade (MF) Median 1.61 -0.56 0.27 -0.40 1.08 0.26 35 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM Global Fixed Income (MF) 17.00 14.00 11.00 � C+ 8.00 5.00 c K 2.00 • -1.00 -4.00 -1 • -7.00 10.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Templeton Global (FBNRX) -0.34 (100) 2.08 (94) -4.12 (100) -2.86 (95) 0.45 (89) 2.28 (39) N/A • Citigroup World Gvt Bond 3.41 (9) 9.39 (3) 11.26 (1) 0.61 (34) 2.65 (37) 0.81 (73) 1.18 (69) Median 2.39 5.41 4.71 -0.35 2.16 1.81 2.04 Comparative Performance 20.00 16.00 12.00 8.00 4.00 c K 0.00 -4.00 -8.00 -12.00 ■ Performance Review Templeton Global (FBNRX) As of June 30. 2016 -16.00 l J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Templeton Global (FBNRX) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A • Citigroup World Gvt Bond -3.83 (52) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) Median -3.75 3.53 -1.52 7.19 1.61 7.82 THIS (� BOGDAHN `'� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Templeton Global (FBNRX) 0.13 (100) 2.29 (1) -6.08 (100) -0.24 (10) 0.25 (45) -1.67 (76) Citigroup World Gvt Bond 7.09 (4) -1.23 (77) 1.71 (1) -1.55 (41) -2.51 (100) -1.49 (71) IM Global Fixed Income (MF) Median 3.15 -0.75 -0.35 -1.91 0.08 -1.04 THIS (� BOGDAHN `'� GROUP 3 Yr Rolling Under /Over Performance - 5 Years - 12.0 x Over z 8.0 Performance m A 4.0 • M 0 0 0.0 , x c ° -4.0 v -8.0 1 1 1 -8.0 -4.0 0.0 4.0 Citigroup World Gvt Bond (% ) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 4.00 is 3.00 • 2.00 v 1.00 0.00 1 1 1 4.34 4.65 4.96 5.27 5.58 Risk (Standard Deviation %) Return Performance Review Templeton Global (FBNRX) As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O O K O w 25.0 O O O v � 50.0 - `w a 75.0 Under v O O O 00 O O Performance O O O O 1 100.0 1 1 1 1 1 8.0 12.0 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count X 5.89 6.20 6.51 Standard Deviation * Templeton Global (FBNRX) 7 O Citigroup World Gvt Bond 20 Peer Group Scatterg ram - 5 Years 2.24 1.96 1.68 «' 1.40 v K 1.12 0.84 4.91 3 (43 %) 2 (29 %) 1 (14 %) 1 (14 %) 0 (0 %) 3 (15 %) 1 (5 %) 16 (80 %) Fol 4.92 4.93 Risk (Standard Deviation %) Return Standard Deviation 4.94 • Templeton Global (FBNRX) 0.45 6.04 • Templeton Global (FBNRX) N/A N/A O Citigroup World Gvt Bond 2.65 5.04 O Citigroup World Gvt Bond 1.18 4.93 Median 2.16 4.45 Median 2.04 4.92 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global (FBNRX) 7.60 -0.01 -11.10 0.41 -0.28 0.09 0.08 4.17 Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Market Down Market Alpha Information Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Templeton Global (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 1.00 3.31 37 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 28.00 24.00 FYTD 20.00 3 YR 4 YR 16.00 • American Core RE 1.26 (100) E r 12.00 10.64 (100) 12.31 (71) K 12.15 (77) 8.00 8.26 (47) 12.19 (73) 13.35 (60) 13.00 (63) 12.71 (73) 4.00 Median 2.54 • 12.63 13.65 0.00 13.35 -4.00 3.75 (49) O O O • O 1 I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 1.26 (100) 7.08 (95) 10.64 (100) 12.31 (71) 12.39 (82) 12.14 (83) 12.15 (77) • American Core RE Policy 2.18 (72) 8.26 (47) 12.19 (73) 13.35 (60) 13.00 (63) 12.71 (73) 12.67 (68) Median 2.54 8.24 12.63 13.65 13.41 13.44 13.35 Comparative Performance Performance Review American Core RE As of June 30. 2016 38.00 32.00 - 26.00 - 20.00 - 14.00 - r K 8.00 - 2.00 - -4.00 - -10.00 - -16.00 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • American Core RE 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) • American Core RE Policy 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) Median 15.93 12.90 13.22 12.90 16.62 6.39 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 American Core RE 2.63 (53) 3.03 (78) 3.33 (73) 3.75 (49) 4.46 (23) 1.80 (94) American Core RE Policy 2.44 (61) 3.43 (57) 3.63 (49) 3.92 (42) 3.40 (57) 3.02 (66) IM U.S. Open End Private Real Estate (SA +CF) Median 2.64 3.57 3.56 3.72 3.55 3.45 38 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 24.0 Over Performance .... 16.0 K v 8.0 o • U 0.0 U E -8.0 16.0 -16.0 -8.0 0.0 8.0 American Core RE Policy ( %) • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years _ 13.60 13.26 12.92 O «' 12.58 v K 12.24 - 11.90 0.80 1.00 Performance Review American Core RE As of June 30. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O O0 K w 25.0 U 50.0 - Q V v 8 75.0 - Q e ®° e e 8 0 ® O Under 100.0 Performance 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 1 16.0 24.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count W 1.20 1.40 1.60 Risk (Standard Deviation %) Return Standard Deviation 1.80 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 13.65 13.26 12.87 O w 12.48 K 12.09 11.70 0.80 1.00 0 (0 %) 1 (5 %) 3 (15 %) 1 (5 %) 0 8 (40 %) 11 (55 %) 13 (65 %) 3 (15 %) 1.20 1.40 1.60 Risk (Standard Deviation %) Return Standard Deviation 1.80 • American Core RE 12.39 1.62 • American Core RE 12.15 1.32 O American Core RE Policy 13.00 1.01 • American Core RE Policy 12.67 0.97 Median 13.41 1.59 Median 13.35 1.69 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.20 95.58 N/A -1.61 -0.46 7.18 1.09 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 11.87 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 0.96 96.13 N/A 0.25 -0.49 8.65 0.94 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 12.19 1.00 0.00 KE PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 28.00 24.00 20.00 16.00 v 12.00 K • 8.00 i 4.00 0.00 -4.00 Q C' C O QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 1.87 (85) 9.06 (40) 13.06 (35) 13.58 (52) 13.71 (44) 14.58 (34) 14.42 (34) • NCREIF Fund Index 2.13 (73) 7.85 (72) 11.82 (77) 13.12 (62) 13.00 (63) 12.79 (71) 12.72 (68) Median 2.54 8.24 12.63 13.65 13.41 13.44 13.35 Comparative Performance 38.00 32.00 26.00 20.00 14.00 v K 8.00 2.00 -4.00 -10.00 Performance Review Intercontinental As of June 30. 2016 ilk -16.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Intercontinental 13.96 (68) 14.10 (34) 18.21 (10) 13.38 (43) 15.68 (77) N/A • NCREIF Fund Index 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) Median 15.93 12.90 13.22 12.90 16.62 6.39 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Intercontinental 1.15 (97) 5.84 (4) 3.67 (49) 3.37 (64) 1.18 (100) 5.10 (13) NCREIF Fund Index 2.18 (65) 3.34 (63) 3.68 (48) 3.82 (45) 3.39 (57) 3.26 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 2.64 3.57 3.56 3.72 3.55 3.45 40 THIS Q- BOGDAHN -'O* GROUP Performance Review Intercontinental As of June 30. 2016 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 18.0 Up y 0.0 Information Sharpe Downside Error Over Market Alpha Ratio Ratio Beta Risk Capture Performance A v 25.0 00000000 Intercontinental 2.66 105.53 N/A °-�- 16.0 0.26 4.20 1.54 0.00 NCREIF Fund Index 100.00 N/A 0.00 70 0!• ti0� 000000 0 Historical Statistics - 5 Years 00 O 50.0_0 Tracking Up Down Information Sharpe - 1 4 . 0 X t o Downside a 0 0 0 0 0 0 0 0 Ratio 0 o U 75.0 - Capture 0 0 12.0 w c Under � 100.0 Performance 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 10.0 10.0 12.0 14.0 16.0 18.0 Total Period 5 -25 25- Median Median -75 75 -95 NCREIF Fund Index ( %) Count Count Count Count Over Performance + Earliest Date X Latest Date 0 Intercontinental 12 1 (8 %) 11 (92 %) 0 (0 %) 0 (0 %) lb NCREIF Fund Index 20 0 (0 %) 5 (25 %) 14 (70 %) 1 (5 %) Peer Group Scatterg ram - 3 Years Peer Group Scatterg ram - 5 Years 14.10 15.34 r.. 13.80 0 r.. 14.75 O 13.50 14.16 13.20 «', 13.57 0 12.90 12.98 O 12.60 1 1 1 1 12.39 1 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Intercontinental 13.71 3.07 • Intercontinental 14.42 2.84 • NCREIF Fund Index 13.00 1.06 O NCREIF Fund Index 12.72 1.03 Median 13.41 1.59 Median 13.35 1.69 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.66 105.53 N/A -5.93 0.26 4.20 1.54 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.70 113.01 N/A 3.31 0.58 4.79 0.86 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 THE 41 l( BOGDAHN j GROUP. Private Equity Fund Overview Crescent Direct Lending Fund As of June 30, 2016 Fund Information $2,000,000 Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower- middle- market companies. The Fund will seek to Total Distributions: enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Capital Committed: $2,000,000 Capital Invested: $1,882,596 Management Fees: $692 Expenses: $49,358 Interest: - Total Contributions: $1,882,596 Remaining Capital Commitment: $810,137 Total Distributions: $771,902 Market Value: $1,179,439 Inception Date: 10/14/2014 Inception IRR: 5.0 TVPI: 1.0 Cash Flow Analysis $2,600,000.0 $2,080,000.0 $1,560,000.0 $1,040,000.0 $520,000.0 $0.0 ($520,000.0) 10/14 1/15 Net Asset Value 4/15 7/15 10/15 Distribution Contributions am MW 7/16 ^\ THk: 42 \ BOGDAHN GROUP. Total Fund Policy Allocation Mandate Jan -1976 S &P 500 Index Barclays Aggregate Index MSCI EAFE Index Oct -2003 S &P 500 Index Barclays Aggregate Index MSCI EAFE Index Sep -2006 S &P 500 Index Barclays Intermediate Aggregate Index Oct -2009 Russell 3000 Index Barclays Intermediate Aggregate Index MSCI EAFE Index Barclays U.S. Treasury: U.S. TIPS Index NCREIF Property Index Oct -2010 Russell 3000 Index Barclays Intermediate Aggregate Index MSCI EAFE Index Barclays U.S. Treasury: U.S. TIPS Index NCREIF Fund Index -Open End Diversified Core (EVE Vanguard Total Stock Market Policy Allocation Mandate Jun -2003 MSCI US Broad Market Index Feb -2013 CRSP U.S. Total Market TR Index Benchmark Historical Hybrid Compositions Total Fund As of June 30, 2016 Total Equity Policy ht ( %) Allocation Mandate Weight ( %) PSN TuiE 43 i BOGDAHN `-'O* GROUP Jan -1970 65.00 S &P 500 Index 90.00 30.00 MSCI EAFE Index 10.00 5.00 Oct -2003 S &P 500 Index 85.00 60.00 MSCI EAFE Index 15.00 30.00 10.00 S &P 500 Index 100.00 60.00 Oct -2009 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 50.00 Total Domestic Equity Policy 25.00 Allocation Mandate Weight ( %) 15.00 Jan -1926 5.00 S &P 500 Index 100.00 5.00 Oct -2009 Russell 3000 Index 100.00 50.00 20.00 15.00 Total Fixed Income Policy 5.00 Allocation Mandate Weight ( %) 10.00 Nov -2000 Barclays Aggregate Index 100.00 Sep -2006 Barclays Intermediate Aggregate Index 100.00 sight ( %) American Realty Policy 100.00 Allocation Mandate Weight ( %) Oct -2007 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -Open End Diversified Core (EVE 100.00 PSN TuiE 43 i BOGDAHN `-'O* GROUP Compliance Checklist Total Fund Winter Springs GE As of June 30, 2016 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down - market capture ratio less than the index. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down - market capture ratio less than the index. Vanguard Total 'Jo NIA RBC Global Yes No NIA ✓ I T. -I.f- American RE ?s No NIA i 44 Gaillard Yes No NIA ✓ �I TIPS Yes No NIA Yes No NIA Yes No NIA VG Short BD Intercontinental Yes No NIA Yes No NIA Yes No NIA Winter Springs General Employees General Plan and Trust Fee Analysis As of June 30, 2016 Receipt & Disbursement 598,414 Total Fund 0.36 39,985,052 143,741 45 PSN TuiE Q BOGDAHN � GROUP Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 20,327,433 8,131 0.04 % of Assets Total Domestic Equity 0.04 20,327,433 8,131 RBC Global (Voyageur) 0.95 5,065,963 48,127 0.95 % of Assets Total International Equity 0.96 6,066,963 48,127 Galliard Core Fixed Income 0.25 4,722,752 11,807 0.25 % of Assets Galliard TIPS 0.15 1,225,121 1,838 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,094,954 1,314 0.12 % of Assets Total Domestic Fixed Income 0.21 7,042,827 14,969 Templeton Global Bond Fund (FBNRX) 0.51 1,165,853 5,946 0.51 % of Assets Total Global Fixed Income 0.61 1,166,863 6,946 Crescent Direct Lending Fund 1.35 1,179,439 15,922 1.35 % of Assets Total Other Fixed Income 1.36 1,179,439 16,922 Intercontinental 1.10 2,616,834 28,785 1.10 % of Assets American Core Realty Fund 1.10 1,988,289 21,871 1.10 % of Assets Total Real Estate 1.10 4,606,123 60,666 Receipt & Disbursement 598,414 Total Fund 0.36 39,985,052 143,741 45 PSN TuiE Q BOGDAHN � GROUP Disclosures Total Fund As of June 30, 2016 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. THE: 46 BOGDAHN GROUP. Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non - systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. R- Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R- Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk - adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk - adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. 47 Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided byway of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S &P Indices constitutes an offer of services in jurisdictions where S &P Indices does not have the necessary licenses. All information provided by S &P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2016. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 48 T F-[ �. BOGDAHN GROUP.. xinrplr,'/i N�, i urrr hwestm m mrd fiduchoi j- decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland Detroit Pittsburgh Tulsa