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HomeMy WebLinkAbout2016 11 17 Regular 500 Quarterly Investment Performance ReviewBOARD OF TRUSTEES AGENDA ITEM ITEM 500 November 17, 2016 Regular Meeting REQUEST: Informational Consent Public Hearings Regular I X The Finance And Administrative Services Department Is Requesting That The Board Of Trustees Receive From The Bogdahn Group The Fourth Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (48 Pages) Winter Springs General Employees' General Plan and Trust Investment Performance Review 3rd Quarter 2016 THE BOGDAHN GROUP. W W W. B O G D A H N G RO U P. C O M shnptifyhi . your investment and fiduciary decisions THE (� BOGDAHN GROUP I am delighted to announce that we will be rebranding our firm early next year to reflect our enduring commitment to true independence and our firm's desire to always put our clients first. In September of 2000, our founder, Joe Bogdahn, started Bogdahn Consulting, LLC. In an industry dominated by brokerage firms and conflicted service models, he realized early on that only true independence would provide the platform for an institutional consulting firm to offer objective advice and guide clients through an increasingly challenging world. Joe shared his vision with me soon thereafter; I quickly appreciated the power of the independent model and our shared desire to put the client first in every aspect of our business dealings. As the firm has evolved and grown over the past 16 years, and as we have recruited talented employees and businesses from around the country, this foundation remains the bedrock of what we do and think about every day — always putting our clients' interests first. We are very proud of the service culture we created and continue to foster within our firm. As an important milestone, we recently transitioned the majority ownership of the firm from our founder to the next generation of leaders. We believe this was a very important step in solidifying our business and ensuring we can continue to serve clients without interruption or disruption in our core servicing philosophy of "clients first ". Our employees continue to exemplify a relentless pursuit of serving our clients within an independent structure every day. The timing of this rebrand corresponds with the expansion of employee ownership and participation, as well as our collective passion of putting clients first in everything we do. While the change will occur early in 2017, we wanted to share this exciting news with you as early as possible. Until then, please contact your consulting team to keep you up to date with developments along the way. We appreciate your business and the opportunity to serve you. Here, our clients will always be first Sincerely, s'�WU4 Mike Welker President /CEO Firm Update Exciting News �PW,� BOGDAHN �J GROUP. • Asset class returns were broadly positive for the 3rd quarter as global markets continued to rebound from the late June shock caused by the U.K.'s decision to leave the European Union. Investment returns also benefited from continued expansionary global central bank policies as well as general improvement in economic data. Domestic and international equity, particularly small cap and emerging markets, easily outperformed bonds as investor sentiment shifted once again to a "risk -on" posture. Returns for the trailing twelve months illustrated a similar pattern with higher risk assets generally outperforming defensive investments. • Equity market indices were positive for the 3rd quarter and the 1 -year period. Domestic stock market returns represented by the Russell 3000 Index have been solid, returning 4.4% for the 3rd quarter and 15.0% over the trailing year. Within domestic stocks, the small cap index doubled the performance of other domestic indices with a return of 9.0% for the quarter. This strong outperformance for the quarter also elevated the small cap benchmark marginally past the return of domestic equity indices for the 1 -year period. Similar to domestic equity results, international equity indices also yielded robust performance for the 3rd quarter. In U.S. Dollar (USD) terms, the MSCI ACWI ex U.S. Index (net) appreciated 6.9% for the quarter and 9.3% over the last year. The Emerging market index posted its third straight quarter of outperformance relative to developed market MSCI -EAFE Index (net). The MSCI Emerging Market Index (net) posted returns of 9.0% and 16.8 %, respective, for the 3rd quarter and 1- year period versus returns of 6.4% and 6.5% for the MSCI EAFE Index (net). • Despite a brief drop in yields at the start of the 3rd quarter, the U.S. Treasury yield curve moved higher as interest rates rose moderately across the maturity spectrum. This upward shift in the yield curve caused U.S. Government bonds to post negative returns for the quarter. In contrast, the investment grade corporate and mortgage- backed bond components of the Aggregate benchmark managed to post positive performance for the quarter. Investment grade corporate issues benefited from increased demand for yield, which led to tightening credit spreads throughout the quarter, particularly in lower credit quality issues. Quarter 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 -0.3% Barclays US TIPS Barclays MBS Barclays Corp IG 0.5% J 1.0% 0.6% 1. 3 -Month T -Bill I 1 0.1 -2.0% 0.0% 2.0% 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 The Market Environment Major Market Index Performance As of September 30, 2016 6.9% 6.4% 9.0% 3.9% - 4.4% ] 4.0% 4.5% 9.0 4.0% 6.0% 8.0% 10.0% 9.3% 6.5% 16.8% 15.4% 15. 14. 14.2% 5.5 5. 4.0 8.6% 6.6% 6% 3 -Month T -Bil 0.2 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Vft%� THE so=e.ln­ tr tMer,;cs 2 BOGDAHN `~� GROUP. • U.S. equity index returns were positive across the style and capitalization spectrum during the 3rd quarter. The enthusiasm from generally better than expected 2nd quarter earnings and positive macroeconomic data early in the quarter were tempered by rising expectations the U.S. Federal Reserve (Fed) would tighten monetary policy by increasing short -term interest rates in September. While the Fed ultimately decided to leave short -term interest rates unchanged, Fed Chair Janet Yellen provided guidance that the case for a rate increase had been "strengthened ", increasing the odds of a rate hike before the end of the year, but likely not until after the November election cycle. • Growth stocks marginally outpaced value stocks across the capitalization spectrum for the 3rd quarter, reversing the trend of value outperformance for the first half of 2016. Growth index results were led by investors seeking the potential return premium associated with faster growing companies. Growth index performance also benefited from larger weights to Information Technology, the best performing economic sector for the 3rd quarter. As with the core indices, small cap style benchmarks were the best performers across the capitalization spectrum, doubling their mid and large cap counterparts. Despite a strong 3rd quarter for growth indices, the style -based performance reverses over the 1 -year period with the more defensive value indices outpacing growth indices across the capitalization spectrum. • From a valuation perspective, equity valuations appear stretched relative to historical levels based on their forward Price /Earnings ratios (P /E). Even the most attractively valued indices are trading modestly above their historical valuation averages. The large and mid cap growth indices trade at valuations near their respective historical average, while the remaining indices range between 106% and 114% of their 15 -year averages. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth The Market Environment Domestic Equity Style Index Performance As of September 30, 2016 Quarter Performance - Russell Style Series 3.9% 4.4% 4.9% 3.5% 7 4.0% 4.6% 4.4% 4.5% 4.6% 2000 Value 20001ndex 2000 Growth 0.0% 2.0% 4.0% 6.0% 1 -Year Performance - Russell Style Series 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth 0.0% 11.2 12.1% 5.0% 10.0% 8.9% 9.0% J9.2 8.0% 10.0% 16.4% 15.0% 13.6% 16.2% 14.9% 13.8% 17.3% 14.2% 18.8% 15.5% 15.0% 20.0% THE Soy, ln�e tr tMetrics 3 (��/ BOGDAHN `'J GROUP. • Large cap sector performance was polarizing for the 3rd quarter with a performance span of 18.3% between the best and worst performing sectors. Seven of eleven sectors within the Russell 1000 Index posting gains for the period but only four economic sectors outpaced the 4.0% return of the broad Russell 1000 index. The Information Technology sector was the quarter's best performer. The sector's return of 12.6% was supported by a strong earnings season. Financial securities also performed notably well, returning 6.7 %, as market participants considered the heightened possibility of a near -term interest rate hike. The prospect of higher interest rates represented a headwind to more defensive sectors, reversing a trend of outperformance in the Utilities, Real Estate, Telecommunications and Consumers Staples sectors. Utilities were the worst performers, returning -5.7% for the quarter. Sector performance over the 1 -year period has been remarkably solid with all eleven economic sectors posting positive results, and nine posting double -digit returns. Despite its negative performance for the 3rd quarter, the Telecommunications sector was the best performer over the 1 -year period with a return of 26.1%. Financial stocks have struggled relative to other sectors over the 1 -year period as the persistent low interest rate environment continues to inhibit bank profits. • Small cap sector performance was generally positive for the 3rd quarter with nine of eleven sectors advancing. However, much like large cap sector results, the performance span between the best and worst performing sectors was a large 22.6% for the period. While the trends observable in the large cap index generally persisted in the small cap benchmark, small cap sector performance outpaced the respective large cap sector result in ten of eleven sectors. Also similar to large cap issues, higher yielding, defensive sectors lagged the more cyclical, economically sensitive sectors. Over the 1 -year period, higher dividend paying Real Estate, Utilities and Telecommunications sectors posted double -digit performance despite their relatively weak 3rd quarter results. Although positive, the Consumer Discretionary and Energy sectors lagged over the 1 -year period returning 1.3% and 1.8% respectively. • 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 Information Technology and Telecommunications sectors were trading at the largest discount to their long -term average P/E ratios. In contrast, Energy and Utilities sector valuations were the most extended relative to their historical P/E ratios. Consumer Disc (12.8 %) Consumer Staples (9.6%) Energy (6.8%) Financials (12.9 %) Health Care (14.5 %) Industrials (10.0 %) Info Technology (19.9 %) Materials (3.2%) Real Estate (4.1%) Telecom Services (2.7%) Utilities (3.4%) The Market Environment GICS Sector Performance & (Sector Weight) As of September 30, 2016 Russell 1000 ■Quarter o1 -Year 3.5% 9.0% -2.6 15.5 2.7 1 1% 7. 6.7 5.9% 1.6% 10.3% 4.1 18.6% 12.6% IM 21.7% 4.1 o 2 .3% -1.6% 18.6% 26.1 -5.7 18.6% -10.0% -5.0% 0.0% Russell 2000 Consumer Disc (13.3 %) Consumer Staples (3.1%) Energy (3.0%) Financials (17.3 %) Health Care (13.6 %) Industrials (14.1%) Info Technology (17.5 %) Materials (4.6%) Real Estate (8.6%) Telecom Services (0.8%) Utilities (4.1%) -5.1 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% ■Quarter ❑1 -Year 3.9% 19.6% 10.5% 0.3% 12.0 13.7% 8.1 9.2% 21.0% 16.3% 25.6 12.3% 37.1% 24.1 14.5% 23.8 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 10� THE Source: Morningstar Direct 4 BOGDAHN �~� GROUP. Top r r Weight Puma Biotechnology Inc 0.00% 1 e Return 125.1% Quarter) RA"IIIIIIIIIIIIIIIIIIII -11.0% Health Care Lim Apple Inc 2.96% 18.9% 4.7% Information Technology Microsoft Corp 2.08% 13.3% 33.7% Information Technology Exxon Mobil Corp 1.74% -6.1% 21.6% Energy Amazon.com Inc 1.56% 17.0% 63.6% Consumer Discretionary Johnson & Johnson 1.55% -2.0% 30.2% Health Care Facebook Inc A 1.38% 12.2% 42.7% Information Technology Berkshire Hathaway Inc B 1.31% -0.2% 10.8% Financials General Electric Cc 1.30% -5.2% 21.1% Industrials AT &T Inc 1.20% -5.0% 31.2% Telecommunication Services JPMorgan Chase & Cc 1.16% 8.0% 12.5% Financials Top r r Weight Puma Biotechnology Inc 0.00% 1 e Return 125.1% Quarter) RA"IIIIIIIIIIIIIIIIIIII -11.0% Health Care The Chemours Cc 0.00% 94.7% 151.1% Materials Genworth Financial Inc 0.00% 92.2% 7.4% Financials Lumentum Holdings Inc 0.00% 72.6% 146.4% Information Technology Cope Holdings SA Class A 0.01% 69.3% 118.4% Industrials Groupon Inc 0.01% 58.5% 58.0% Consumer Discretionary lonis Pharmaceuticals Inc 0.02% 57.3% -9.4% Health Care bluebird bio Inc 0.00% 56.6% -20.8% Health Care GoPro IncA 0.00% 54.3% -46.6% Consumer Discretionary Penske Automotive Group Inc 0.01% 54.2% 2.3% Consumer Discretionary Bottom Russell rrr SunEdison Inc r 0.00% -64.5% Quarter) Sector -99.3% Information Technology Corrections Corp of America 0.01% -58.8% -48.6% Real Estate SunPower Corp 0.00% -42.4% -55.5% Information Technology Quorum Health Corp 0.00% -41.5% N/A Health Care The Hain Celestial Group Inc 0.02% -28.5% -31.0% Consumer Staples Diamond Offshore Drilling Inc 0.01% -27.6% 2.4% Energy Bristol -Myers Squibb Company 0.43% -26.7% -7.4% 1 Health Care Tractor Supply Cc 0.04% -25.9% -19.3% Consumer Discretionary Dollar General Corp 0.09% -25.3% -2.2% Consumer Discretionary NRG Energy Inc 0.02% -25.1% -22.2% Utilities Source: Morningstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of September 30, 2016 �THE BOGDAHN J GROUP. Microsemi Corp 0.27% 28.5% 27.9% Information Technology Advanced Micro Devices Inc 0.26% 34.4% 301.7% Information Technology Gramercy Ppty Tr 0.23% 5.7% 54.8% Real Estate Curtiss - Wright Corp 0.23% 8.1% 46.7% Industrials Idacorp Inc 0.23% -3.2% 24.4% Utilities Healthcare Realty Trust Inc 0.22% -1.8% 42.7% Real Estate Aspen Technology Inc 0.22% 16.3% 23.4% Information Technology Fair Isaac Corp 0.22% 10.3% 47.6% Information Technology Cepheid 0.22% 71.3% 16.6% Health Care Portland General Electric Cc 0.22% -2.8% 18.8% Utilities Top r Russell rrr Weight Seventy Seven Energy Inc 0.00% -Qtr 1 Return 20366.9% Quarter) 1 -Year Sector Return 1265.9% Energy Sarepta Therapeutics Inc 0.15% 222.0% 91.2% Health Care Tobira Therapeutics Inc 0.02% 216.4% 311.4% Health Care Clayton Williams Energy Inc 0.03% 211.1% 120.1% Energy Ultra Petroleum Corp 0.00% 184.6% -21.6% Energy Cloud Peak Energy Inc 0.00% 164.1% 106.8% Energy Clovis Oncology Inc 0.07% 162.8% -60.8% Health Care Acacia Communications Inc 0.03% 158.6% N/A Information Technology Abeona Therapeutics Inc 0.00% 154.2% 48.1% Health Care Healthways Inc 0.05% 129.1% 137.9% Health Care Essell rrr Horsehead Holding Corp r Sector MM Return 0.00% -93.8% -99.4% Materials Fairway Group Holdings Corp A 0.00% -89.2% -99.3% Consumer Staples Key Energy Services Inc 0.00% -82.1% -91.2% Energy Violin Memory Inc 0.00% -80.2% -86.8% Information Technology Code Rebel Corp 0.00% -80.0% -99.9% Information Technology CytRx Corp 0.00% -73.6% -75.2% Health Care Tokai Pharmaceuticals Inc 0.00% -72.2% -85.2% 1 Health Care Novavax Inc 0.03% -71.4% -70.6% Health Care 6D Global Technologies Inc 0.00% -66.7% -98.3% Information Technology Intra - Cellular Therapies Inc 0.03% -60.7% -61.9% Health Care �THE BOGDAHN J GROUP. The Market Environment International and Regional Market Index Performance (Country Count) As of September 30, 2016 • Similar to domestic equity benchmarks, the 3rd quarter was largely positive AC World x US (45) for international equities with developed and emerging market indices posting solid returns in both USD and local currency terms. The currency AC World x US (45) impact on returns was mixed during the quarter and the performance differential was more muted than recent quarters. Similar to the 3rd quarter, WORLD x US (22) results for the 1 -year period were also broadly positive in both USD and local currency. EAFE (21) • European stocks bounced back during the 3rd quarter as markets recovered Europe & ME (16) from the immediate negative assessment of the U.K.'s vote to leave the European Union. Although the impact of the referendum will likely have Pacific (5) economic consequences, they are not near -term in nature. While European Central Bank (ECB) President Mario Draghi signaled that further monetary Emerging Mkt (23) policy stimulus would be available if needed, the ECB, supported by generally positive economic data in the region, left monetary policy EM EM EA (10) unchanged through the quarter. U.K. economic data also surprised to the upside through the quarter as the Bank of England (Bo E) launched a series EM Asia (8) of expansionary monetary policy measures and Theresa May became prime EM Latin Amer (5) minister following the resignation of David Cameron. Quarter Performance I ❑USD ❑Local Currency 6.9% 6.4% 6.3% 6.0% 6.4% 6.0% 5.3% 5.5% 8.5% 7.0% 9.0% 6% 7% 2.4 10.5% 8.8% 5.4% 75% 0.0 7o 1.0 7o 4.0 7o • Japanese equities rose sharply through the quarter, gaining 8.6 %, as elections within Japan's House of Councilors strengthened the position of 1 -Year Performance Prime Minister Abe. The result of the elections made way for the AC World x US (45) announcement of a $28 trillion Yen fiscal stimulus package. In addition, the Bank of Japan (BoJ) increased the scale of its ETF purchasing program from WORLD x US (22) $3.3 trillion Yen to $6 trillion Yen annually, and while it left interest rates unchanged, the BoJ placed a 0.0% ceiling on 10 -year government bond EAFE(21) yields and planned to reduce ongoing purchases of ultra -long Government bonds in an effort to influence the shape of their yield curve. Europe & ME (16) • Broad emerging market indices were positive throughout the quarter, Pacific (5) outperforming their developed market counterparts. Asian markets, led by China, South Korea, and Taiwan were the best performers for the 3rd quarter Emerging Mkt (23) in both USD and local currency terms. Over the trailing 1 -year period, Latin America was the best performing region returning 28.7% in USD terms and EM EM EA (10) 20.2% on a local currency basis as the region benefited from political tailwinds in Brazil and rising commodity prices. Russia, Egypt, and EM Asia (8) Indonesia were also notable positive performers over the period. Emerging European countries were laggards relative to emerging peers in Asia and EM Latin Amer (5) I ntin Amarirn 6.0% 8.0% 10.0% 12.0% ■USD ❑Local Currency 3% 6.9% 7.2% 5.2% 6.5% 4.6% 2.4 6.7 14.7% 0.8% 16.8% ­-/o 8.1 6.6 16.9% 13.4% 28.7% 20.2 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% THE Source: MSCI Global Index Monkor (Returns are Net) �� B O GDAH N s �J GROUP. Consumer Discretionary Sector Weight 12.2% Quarter 10.9% 2.6% Consumer Staples 12.8% 1.9% 13.9% Energy 4.8% -1.5% 15.6% Financials 19.2% 11.0% -6.7% Health Care 11.4% -2.4% 0.8% Industrials 14.1% 8.6% 15.8% Information Technology 1 5.5% 1 14.8% 1 18.1 Materials 7.5% 15.8% 21.6% Real Estate 4.0% 4.9% 12.4% Telecommunication Services 4.8% -0.4% 6.0% Utilities Total 3.7% rr r% 0.1% 4.3% 9.3% -5.7% Sweden 2.8% Consumer Discretionary 11.4% 5.8% 4.8% Consumer Staples 11.1% -0.7% 13.2% Energy 6.6% 2.1% 20.5% Financials 21.6% 10.1% 0.1% Health Care 8.6% 0.1% -2.2% Industrials 11.7% 5.8% 13.8% Information Technology 9.6% 15.6% 26.2% Materials 1 7.5% 1 9.1% 1 24.8% Real Estate 3.5% 4.9% 13.0% Telecommunication Services 4.9% 2.0% 5.3% Utilities 3.4% 2.6% 5.5% 0.2% 0.1% 12.4% 56.9% Consumer Discretionary 10.6% 9.6% 13.9% Consumer Staples 7.9% 1.2% 10.1% Energy 7.3% 8.0% 26.2% Financials 23.7% 11.5% 14.6% Health Care 2.6% 2.3% 4.5% Industrials 5.9% 4.9% 1.2% Information Technology 23.9% 16.1% 32.7% Materials 6.4% 10.2% 23.7% Real Estate 2.7% 7.7% 15.5% Telecommunication Services 6.1% 2.2% 2.2% Utilities Total 2.9% 100 0.9% 9.0% 9.3% -2.5% .0% 0.9% Source: MSCI Global Index Mondor (Returns are Net in USD) The Market Environment U.S. Dollar International Index Attribution & Country Detail As of September 30, 2016 Country Japan Weight 23.8% Weight 161% EE�Quarter Return 1 8.6% 1-Year Return 12.1% United Kingdom 18.9% 13.2% 4.0% 1.5% France 9.7% 6.8% 6.4% 3.6% Germany 9.0% 6.3% 10.0% 9.1% Switzerland 9.0% 6.3% 2.6% 1.0% Australia 7.3% 5.1% 7.9% 21.7% Hong Kong 3.5% 2.5% 11.9% 19.1% Netherlands 3.4% 2.4% 9.1% 10.4% Spain 3.0% 2.1% 9.3% -5.7% Sweden 2.8% 2.0% 7.5% 3.9% Italy 1.9% 1.3% 2.2% -21.0% Denmark 1.8% 1.2% -6.3% -1.5% Belgium 1.4% 1.0% 5.0% 19.1 Singapore 1.3% 0.9% -0.2% 9.7% Finland 1.0% 0.7% 7.4% 9.3% Israel 0.7% 0.5% -2.0% -7.7% Norway 0.6% 0.5% 6.3% 10.1 Ireland 0.5% 0.3% 7.4% -0.7% New Zealand 0.2% 0.1% 12.4% 56.9% Austria 0.2% 0.1% 16.7% 11.6% Portugal 0.2% 0.1% 6.3% 11.2% Canada Total Developed Countries me r 6.7% 76.9% 6.2% 4.9% 13.9% 14.5% 13.0% Korea 3.4% 11.0% 21.5% Taiwan 2.8% 11.7% 22.7% India 2.0% 5.9% 6.1% Brazil 1.7% 11.3% 57.6% South Africa 1.7% 6.3% 9.9% Mexico 0.9% -2.2% -2.5% Russia 0.9% 8.4% 25.2% Indonesia 0.6% 9.5% 53.2% Malaysia 0.6% -1.5% 13.2% Thailand 0.5% 7.2% 20.9% Philippines 0.3% -5.3% 6.6% Turkey 0.3% -5.3% 5.8% Chile 0.3% -1.7% 11.8% Poland 0.3% 3.1% -15.7% Qatar 0.2% 6.9% -5.2% United Arab Emirates 0.2% 6.1% 0.7% Colombia 0.1% 1 2.8% 1 17.3% Peru 0.1% 1.1% 39.5% Greece 0.1% 1.0% -38.3% Hungary 0.1% 10.8% 38.0% Egypt 0.0% 21.6% 6.4% Czech Republic Total Emerging Countries Total ACWlxIJS Countries 0.0% 23.2% 100 .0% -0.4% r, -12.8% THE BOGDAHN ♦~� GROUP. • Despite historically low yields, fixed income indices continued their strong 2016 performance through the 3rd quarter of the year. The initial downward yield shock caused by June's "Brexit" vote wore off quickly and bond market volatility remained relatively low through the remainder of the quarter. Improving economic data in the U.S. led investors to price in greater likelihood of a rate increase at the Fed's September meeting. This expectation caused interest rates to creep up across the yield curve, especially at the short end of the curve. While Fed Chair Janet Yellen relayed a generally positive view of the U.S. economy, the Federal Open Market Committee voted to keep interest rates stable for the time being. However, three of the ten voting committee members were in favor of a rate increase. Although an interest rate hike is not likely until after the November elections, there is certainly a reasonable expectation for a rate hike before year end. • The yield curve rose over the 3rd quarter with short -term interest rates rising to a greater degree than long -term interest rates. This curve "flattening" represented a headwind to shorter duration market indices. Despite rising interest rates, U.S. investment grade bond indices posted gains for the 3rd quarter. Investment grade corporates benefited from tightening interest rate credit spreads as investors became more comfortable taking on risk for the prospect of greater return. In contrast, the Bloomberg Barclays U.S. Treasury Index finished the quarter in the red due to its relatively high duration and low yield. The broad market Bloomberg Barclays Aggregate Index posted a return between the Treasury and Investment Grade indices with a return of 0.5% for the 3rd quarter. Returns over the 1 -year period follow the same general trend as 3rd quarter results with the Bloomberg Barclays U.S. Corporate IG Index returning a strong 8.6% for the period. • Lower credit quality issues outperformed higher quality securities during the 3rd quarter. Baa rated securities returned 1.9% versus a return of 0.1 % for AAA issues due to the compression of interest rate credit spreads throughout the quarter. Spread compression was more prominent, and thus more beneficial, within lower credit qualities. The Bloomberg Barclays U.S. Corporate High Yield Index gained an impressive 5.6% for the quarter and 12.7% for the trailing 1 -year period. The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of September 30, 2016 AAA (4.7) AA (6.4) A (7.6) Baa (7.6) U.S. High Yield (4.0) U.S. Treasury (6.4) U.S. Mortgage (2.5) U.S. Corporate IG (7.5) U.S. TIPS (6.6) Aggregate (5.5) Intermediate Agg (3.6) Global Agg x US (8.0) Multiverse (6.8) Quarter Performance -2.0% 0.0 1 -Year Performance AAA (4.7) AA (6.4) A (7.6) Baa (7.6) U.S. High Yield (4.0) U.S. Treasury (6.4) U.S. Mortgage (2.5) U.S. Corporate IG (7.5) U.S. TIPS (6.6) Aggregate (5.5) Intermediate Agg (3.6) Global Agg x US (8.0) Multiverse (6.8) 3.9% J 4.1% 3.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Souxe:eamaysCa,riaLi� BOGDAHN $ `~� GROUP. 0.1 0.4% 0.9% 1.9% 5.6% -0.3 0.6% 1.4% 1.0% 0.5% 0.3 1.0% -2.0% 0.0 1 -Year Performance AAA (4.7) AA (6.4) A (7.6) Baa (7.6) U.S. High Yield (4.0) U.S. Treasury (6.4) U.S. Mortgage (2.5) U.S. Corporate IG (7.5) U.S. TIPS (6.6) Aggregate (5.5) Intermediate Agg (3.6) Global Agg x US (8.0) Multiverse (6.8) 3.9% J 4.1% 3.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Souxe:eamaysCa,riaLi� BOGDAHN $ `~� GROUP. • U.S. TIPS finished the 3rd quarter with a return of 1.0 %. The quarter's return can be attributed to a modest decline in yields at the longer end of the TIPS yield curve as well as an increase in the CPI All Urban Index from April to July. The TIPS return for the trailing 1 -year period is a solid 6.6 %. In USD terms, international fixed income indices posted gains for both the 3rd quarter and 1 -year period. Despite relatively low interest rates in international markets, with several government issues trading at negative yields, the Bloomberg Barclays Global Aggregate ex U.S. Index returned 1.0% for the quarter and strong 11.7% over the 1 -year period. This performance outpaced all domestic indices except the Bloomberg Barclays U.S. Corporate High Yield Index's return of 12.7% over the last twelve months. Some of factors supporting the index performance detailed in the bar graphs on the previous page is visible on a time series basis in the line graphs on the right. The 1-Year Trailing Market Rates' chart illustrates that the 10 -year Treasury yield (green line), after initially falling on the "Brexit" vote, rose over the remainder of the quarter. 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 tighten (widen), i.e., the line is falling, it is equivalent to an interest rate decrease (increase)for corporate bonds, which boosts returns. This spread has consistently fallen since the beginning of 2016 and is now near its lowest point of the calendar year. While there was upside momentum in credit spreads early in 2016, they have narrowed by more than 1 % since their high on February 11th. The lower graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. While Treasury issues ended the 3rd quarter slightly higher than the prior quarter, long -term rates remain near their lowest levels in the past twelve months while short -term rates are at the high end of their twelve 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 significant 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 0.50 000 The Market Environment Market Rate & Yield Curve Comparison As of September 30, 2016 1 -Year Trailing Market Rates Fed Funds Rate -TED Spread -3 -Month Libor __BAA OAS -10yr Treasury -10yr TIPS w rn Sep-15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 Jul -16 Aug -16 Sep-16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve X12131/2015 X3/31/2016 ---6/30/2016 X9/30/2016 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 FRED (Federal Reserve of St. Louis) 9 (��j BOGDAHN `~� GROUP. Asset Allocation By Segment as of June 30, 2016 : $40,011,994 Asset Allocation Summary Total Fund Asset Allocation By Segment as of September 30, 2016 : $41,660,480 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 20,327,433 50.8 ■ Domestic Equity 21,225,417 50.9 • International Equity 5,065,963 12.7 ■ International Equity 5,718,627 13.7 • Domestic Fixed Income 7,028,993 17.6 ■ Domestic Fixed Income 7,062,241 17.0 • Global Fixed Income 1,165,853 2.9 ■ Global Fixed Income 1,144,225 2.7 • Other Fixed Income 1,206,381 3.0 ■ Other Fixed Income 1,362,644 3.3 • Real Estate 4,581,096 11.4 ■ Real Estate 4,684,872 11.2 • Cash Equivalent 636,275 1.6 ■ Cash Equivalent 462,454 1.1 THE 10 (� , BOGDAHN ♦~J GROUP. Asset Allocation By Manager as of June 30, 2016 : $40,011,994 Asset Allocation Summary Total Fund Asset Allocation By Manager as of September 30, 2016 : $41,660,480 Allocation Market Value Allocation Allocation Market Value Allocation • Vanguard Total Stock Market (VITSX) 20,327,433 50.8 ■ Vanguard Total Stock Market (VITSX) 21,225,417 50.9 • RBC Global (Voyageur) 5,065,963 12.7 ■ RBC Global (Voyageur) 5,718,627 13.7 • Galliard Core Fixed Income 4,722,752 11.8 ■ Galliard Core Fixed Income 4,736,754 11.4 • Intercontinental 2,616,834 6.5 ■ Intercontinental 2,714,101 6.5 • American Core Realty Fund 1,988,289 5.0 ■ American Core Realty Fund 1,994,730 4.8 • Galliard TIPS 1,225,121 3.1 ■ Crescent Direct Lending Fund 1,362,644 3.3 • Crescent Direct Lending Fund 1,206,381 3.0 ■ Galliard TIPS 1,232,715 3.0 Templeton Global Bond Fund (FBNRX) 1,165,853 2.9 Templeton Global Bond Fund (FBNRX) 1,144,225 2.7 • Vanguard Short Term Bond Index (VSCSX) 1,094,954 2.7 ■ Vanguard Short Term Bond Index (VSCSX) 1,100,208 2.6 Receipt &Disbursement 598,414 1.5 ■ Receipt &Disbursement 431,060 1.0 � THE (�l BOGDAHN ♦~J GROUP. Asset Allocation vs. Target Allocation Total Fund As of September 30, 2016 Asset Allocation vs. Target Allocation Total Domestic Equity _0.9% Total International Equity -1.3 Total Domestic Fixed Income 2.0% Total Global Fixed Income -2.3 Total Real Estate 1.3 Total Other Fixed Income -1.7 Receipt & Disbursement 1.0 -4.0% -3.2% -2.4% -1.6% -0.8% 0.0% 0.8% 1.6% 2.4% 3.2% 4.0% 0 Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation I%) Target (% Total Domestic Equity 21,225,417 50.9 50.0 Total International Equity 5,718,627 13.7 15.0 Total Domestic Fixed Income 7,069,677 17.0 15.0 Total Global Fixed Income 1,144,225 2.7 5.0 Total Real Estate 4,708,831 11.3 10.0 Total Other Fixed Income 1,362,644 3.3 5.0 Receipt & Disbursement 431,060 1.0 0.0 Total Fund 41,660,480 100.0 100.0 THE 12 (� BOGDAHN ♦'J GROUP. Asset Allocation Asset Allocation History By Portfolio As of September 30, 2016 Historical Asset Allocation by Portfolio Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Total Equity 26,944,044 64.68 25,393,396 63.46 25,162,277 63.47 24,130,792 61.71 22,792,387 61.00 Total Domestic Equity 21,225,417 50.95 20,327,433 50.80 19,799,027 49.95 18,729,194 47.90 17,625,211 47.17 Vanguard Total Stock Market (VITSX) 21,225,417 50.95 20,327,433 50.80 19,799,027 49.95 18,729,194 47.90 17,625,211 47.17 Total International Equity 5,718,627 13.73 5,065,963 12.66 5,363,250 13.53 5,401,598 13.81 5,167,176 13.83 RBC Global (Voyageur) 5,718,627 13.73 5,065,963 12.66 5,363,250 13.53 5,401,598 13.81 5,167,176 13.83 Total Fixed Income -Mw 9,576,546 22.99 9,415,061 23.53 9,550,795 24.09 9,378,800 23.99 9,383,428 25.12 Total Domestic Fixed Income 7,069,677 16.97 7,042,827 17.60 7,130,006 17.99 7,248,447 18.54 7,278,590 19.48 Galliard Core Fixed Income 4,736,754 11.37 4,722,752 11.80 4,640,688 11.71 4,722,477 12.08 4,739,662 12.69 Galliard TIPS 1,232,715 2.96 1,225,121 3.06 1,209,173 3.05 1,166,900 2.98 1,177,381 3.15 Vanguard Short Term Bond Index (VSCSX) 1,100,208 2.64 1,094,954 2.74 1,280,146 3.23 1,359,069 3.48 1,361,547 3.64 Total Global Fixed Income 1,144,225 2.75 1,165,853 2.91 1,178,212 2.97 1,187,481 3.04 1,171,002 3.13 Templeton Global Bond Fund (FBNRX) 1,144,225 2.75 1,165,853 2.91 1,178,212 2.97 1,187,481 3.04 1,171,002 3.13 Total Other Fixed Income 1,362,644 3.27 1,206,381 3.02 1,242,577 3.13 942,872 2.41 933,836 2.50 Crescent Direct Lending Fund 1,362,644 3.27 1,206,381 3.02 1,242,577 3.13 942,872 2.41 933,836 2.50 Total Real Estate 4,708,831 11.30 4,605,123 11.51 4,565,700 11.52 4,518,286 11.56 4,377,366 11.72 American Core Realty Fund 1,994,730 4.79 1,988,289 4.97 1,992,671 5.03 1,970,208 5.04 1,940,406 5.19 Intercontinental 2,714,101 6.51 2,616,834 6.54 2,573,029 6.49 2,548,078 6.52 2,436,960 6.52 Receipt & Disbursement 431,060 1.03 598,414 1.50 362,661 0.91 1,072,858 2.74 808,409 2.16 Total Fund Portfolio 100.00 40,011,994 100.00 39,641,433 100.00 39,100,736 100.00 37,361,5 100.0 THE 13 BOGDAHN �J GROUP. Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 60.0 o— 50.0 v 0 a 40.0 30.0 20.0 10.0 0.0 9/07 3/08 9/08 Domestic Equity Other Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To September 30, 2016 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 International Equity Domestic Fixed Income 0 Global Fixed Income Real Estate Cash Equivalent THE 14 (� , BOGDAHN \'J GROUP. 68.0 60.0 52.0 44.0 36.0 0 c 28.0 v 0 a 20.0 12.0 4.0 -4.0 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of September 30, 2016 0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash • Total Fund Portfolio 50.95 (17) 13.73 (56) 16.97 (90) 2.75 (82) 3.27 (88) 11.30 (16) 1.03 (64) 5th Percentile 57.08 26.54 47.06 9.04 32.29 13.37 7.36 1st Quartile 49.30 19.11 35.38 4.97 18.50 10.34 2.43 Median 43.28 14.30 29.33 4.47 11.31 7.58 1.33 3rd Quartile 33.96 11.46 22.00 3.58 4.78 5.27 0.75 95th Percentile 19.47 7.45 13.55 0.27 1.70 2.66 0.06 THE 15 (� BOGDAHN ♦'J GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30, 2016 Financial Reconciliation Quarter to Date Market Value Net Management Contributions Distributions Other Income Apprec.1 Market Value 0 710112 01 6 Transfers Fees Expenses Deprec. 0 913 012 01 6 Total Equity 25,393,396 12,654 - 12,654 -281 103,630 1,447,299 26,944,044 Total Domestic Equity 20,327,433 - - - 102,475 795,509 21,225,417 Vanguard Total Stock Market (VITSX) 20,327,433 - - - 102,475 795,509 21,225,417 Total International Equity 5,065,963 12,654 - 12,654 -281 1,155 651,790 5,718,627 RBC Global (Voyageur) 5,065,963 12,654 - 12,654 -281 1,155 651,790 5,718,627 Total Fixed Income __A 9,415,061 152,269 -3,411 -152 14,958 -2,179 9,576,546 Total Domestic Fixed Income 7,042,827 3,411 -3,411 -152 7,553 19,449 7,069,677 Galliard Core Fixed Income 4,722,752 3,411 -3,411 - - 14,002 4,736,754 GalliardTIPS 1,225,121 - - -152 1,791 5,955 1,232,715 Vanguard Short Term Bond Index (VSCSX) 1,094,954 - - 5,762 -508 1,100,208 Total Global Fixed Income 1,165,853 -7,405 7,405 - 21,628 1,144,225 Templeton Global Bond Fund (FBNRX) 1,165,853 -7,405 7,405 - 21,628 1,144,225 Total Other Fixed Income 1,206,381 156,263 - - 1,362,644 Crescent Direct Lending Fund 1,206,381 156,263 - - - 1,362,644 Total Real Estate 4,605,123 - 24,027 -9,893 59,374 78,254 4,708,831 American Core Realty Fund 1,988,289 - 24,027 -5,501 29,460 6,509 1,994,730 Intercontinental 2,616,834 - -4,392 29,914 71,745 2,714,101 Receipt & Disbursement 598,414 - 140,895 636,295 - 645,137 - - 17,778 161 - 431,060 Total Fund Portfolio 40,011,994 - 636,295 -645,137 - 25,958 - 18,211 178,123 1,523,374 41,660,480 THE 16 BOGDAHN �J GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2015 To September 30, 2016 Financial Reconciliation Fiscal Year to Date Market Value 1 010112 01 5 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec.1 Deprec. Market Value 0 913 012 01 6 Total Equity 22,792,387 850,736 - 50,736 -3,013 534,993 2,819,677 26,944,044 Total Domestic Equity 17,625,211 800,000 - - 387,269 2,412,937 21,225,417 Vanguard Total Stock Market (VITSX) 17,625,211 800,000 - - 387,269 2,412,937 21,225,417 Total International Equity 5,167,176 50,736 - 50,736 -3,013 147,724 406,739 5,718,627 RBC Global (Voyageur) 5,167,176 50,736 - 50,736 -3,013 147,724 406,739 5,718,627 Total Fixed Income __A 9,383,428 - 166,814 - 13,780 - 30,274 76,312 327,673 9,576,546 Total Domestic Fixed Income 7,278,590 -489,848 - 13,555 -595 34,531 260,554 7,069,677 Galliard Core Fixed Income 4,739,662 - 189,848 - 13,555 - - 200,495 4,736,754 Galliard TIPS 1,177,381 - - -595 7,658 48,270 1,232,715 Vanguard Short Term Bond Index (VSCSX) 1,361,547 - 300,000 - 26,872 11,789 1,100,208 Total Global Fixed Income 1,171,002 - 36,706 36,706 - 26,778 1,144,225 Templeton Global Bond Fund (FBNRX) 1,171,002 - 36,706 - - 36,706 - 26,778 1,144,225 Total Other Fixed Income 933,836 359,740 -225 - 29,679 5,076 93,896 1,362,644 Crescent Direct Lending Fund 933,836 359,740 -225 - 29,679 5,076 93,896 1,362,644 Total Real Estate 4,377,366 - 93,891 - 66,283 - 219,849 271,791 4,708,831 American Core Realty Fund 1,940,406 - 93,891 - 21,931 116,885 53,262 1,994,730 Intercontinental 2,436,960 - - 44,352 102,964 218,529 2,714,101 Receipt & Disbursement 808,409 - 590,030 2,733,270 - 2,450,972 - - 70,099 481 - 431,060 Total Fund Portfolio 37,361,590 - 2,733,270 - 2,450,972 - 130,799 - 103,385 831,636 3,419,140 41,660,480 THE 17 BOGDAHN �J GROUP. Comparative Performance Trailing Returns Total Fund As of September 30, 2016 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 4.20 10.75 10.75 7.52 11.34 5.45 11/01/2000 Total Fund Policy 3.50 10.64 10.64 7.41 11.25 5.21 Total Fund (New Mgrs) (Net) 4.20 10.75 10.75 7.52 11.34 5.12 10/01/2007 Total Fund Policy 3.50 10.64 10.64 7.41 11.25 5.94 Total Fund (Gross) 4.26 (11) 11.12 (10) 11.12 (10) 7.86 (4) 11.83 (3) 6.10 (17) 11/01/2000 Total Fund Policy 3.50 (47) 10.64 (19) 10.64 (19) 7.41 (8) 11.25 (7) 5.21 (71) All Public Plans -Total Fund Median 3.42 9.66 9.66 6.20 9.70 5.52 Total Fund (New Mgrs) (Gross) 4.26 (11) 11.12 (10) 11.12 (10) 7.86 (4) 11.83 (3) 5.67 (16) 10/01/2007 Total Fund Policy 3.50 (47) 10.64 (19) 10.64 (19) 7.41 (8) 11.25 (7) 5.94 (8) All Public Plans -Total Fund Median 3.42 9.66 9.66 6.20 9.70 5.04 Total Equity 6.11 --'M' 14.20 14.20 9.10 -W- 15.23 - 6.06 - 01/01/2001 Total Equity Policy 4.88 13.13 13.13 8.22 14.41 4.76 Total Domestic Equity 4.42 (43) 15.21 (24) 15.21 (24) 10.43 (56) 15.96 (57) 6.09 (38) 11/01/2000 Total Domestic Equity Policy 4.40 (43) 14.96 (27) 14.96 (27) 10.44 (55) 16.36 (47) 4.70 (92) IM U.S. Large Cap Core Equity (SA +CF) Median 4.07 13.17 13.17 10.69 16.24 5.62 Total International Equity 12.89 (3) 10.74 (28) 10.74 (28) 5.25 (7) 13.15 (6) 5.91 (66) 11/01/2000 MSCI EAFE Index 6.50 (59) 7.06 (60) 7.06 (60) 0.93 (59) 7.88 (54) 3.87 (99) IM International Large Cap Value Equity (SA +CF) Median 7.03 8.35 8.35 1.51 8.10 6.17 Total Fixed Income 1110112000 Total Fixed Policy 0.31 3.57 3.57 3.09 2.56 4.99 Total Domestic Fixed Income 0.38 (95) 4.21 (98) 4.21 (98) 3.04 (100) 2.71 (100) 5.01 (75) 11/01/2000 Total Domestic Fixed Policy 0.31 (95) 3.57 (99) 3.57 (99) 3.09 (100) 2.56 (100) 4.99 (77) IM U.S. Large Cap Core Equity (SA +CF) Median 4.07 13.17 13.17 10.69 16.24 5.62 Total Global Fixed Income -1.22 (100) 0.81 (100) 0.81 (100) -0.33 (98) N/A 2.88 (42) 12/01/2011 Total Global Fixed Income Policy 0.30 (95) 9.71 (13) 9.71 (13) 1.78 (65) N/A 1.00 (84) IM Global Fixed Income (MF) Median 1.48 7.09 7.09 2.34 2.59 2.68 Total Real Estate 3.00 (12) 11.44 (40) 13.05 (43) 13.67 (40) 5.34 (22) 1010112007 NCREIF Fund Index -ODCE (VVV) 2.05 (52) 10.06 (71) 10.06 (71) 12.44 (62) 12.39 (67) 4.74 (44) IM U.S. Open End Private Real Estate (SA +CF) Median 2.06 10.89 10.89 12.83 12.79 4.71 Returns for periods greater than one year are annualized. Returns are expressed as percentages. TTIE 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 18 linked to new policy. See benchmark history for details. l� BOGDAHN Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. ♦J GROUP. Comparative Performance Trailing Returns Total Fund As of September 30, 2016 Returns for periods greater than one year are annualized. Returns are expressed as percentages. TTIE 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 19 /r , BOGDAHN `� GROUP. QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 4.42 (55) 15.00 (12) 15.00 (12) 10.42 (13) N/A 12.56 (18) 03/01/2013 Vanguard Total Stock Market Index Hybrid 4.41 (56) 14.99 (12) 14.99 (12) 10.43 (13) 16.37 (13) 12.59 (17) IM U.S. Multi -Cap Core Equity (MF) Median 4.57 11.32 11.32 8.43 14.91 11.17 RBC Global (Voyageur) 12.89 (3) 10.74 (28) 10.74 (28) 5.25 (7) 13.15 (6) 2.79 (16) 11/01/2007 MSCI EAFE Index 6.50 (59) 7.06 (60) 7.06 (60) 0.93 (59) 7.88 (54) -0.42 (74) IM International Large Cap Value Equity (SA +CF) Median 7.03 8.35 8.35 1.51 8.10 0.51 Galliard Core Fixed Income 0.30 (58) 4.36 (24) 4.36 (24) 3.51 (23) 3.12 (38) 4.35 (66) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 0.31 (57) 3.57 (71) 3.57 (71) 3.09 (53) 2.56 (75) 4.24 (79) IM U.S. Intermediate Duration (SA +CF) Median 0.36 3.88 3.88 3.12 2.85 4.51 Galliard TIPS 0.63 (86) 4.75 (94) 4.75 (94) 1.63 (74) 1.39 (80) 3.59 (94) 10/01/2007 Blmbg. Barc. U.S. TIPS 1 -10 Year 0.57 (96) 4.83 (94) 4.83 (94) 1.51 (91) 1.34 (94) 3.65 (93) IM U.S. TIPS (SA +CF) Median 0.99 6.56 6.56 2.40 1.94 4.52 Vanguard Short Term Bond Index (VSCSX) 0.48 (43) 3.40 (24) 3.40 (24) N/A N/A 2.75 (18) 01/01/2015 Blmbg. Barc. U.S. Corporate 1 -5 Year Index 0.52 (37) 3.33 (28) 3.33 (28) 2.58 (14) 3.09 (19) 2.82 (13) IM U.S. Intermediate Investment Grade (MF) Median 0.43 2.73 2.73 1.89 2.06 2.10 Templeton Global Bond Fund (FBNRX) -1.22 (100) 0.83 (100) 0.83 (100) -0.32 (98) N/A 2.89 (42) 12/01/2011 Citigroup World Government Bond Index 0.30 (95) 9.71 (13) 9.71 (13) 1.78 (65) 0.77 (88) 1.00 (84) IM Global Fixed Income (MF) Median 1.48 7.09 7.09 2.34 2.59 2.68 American Core Realty Fund 1.83 (73) 9.04 (95) 9.04 (95) 11.82 (78) 11.86 (76) 4.44 (70) 10/01/2007 American Core Realty Policy 2.18 (40) 10.62 (63) 10.62 (63) 12.56 (60) 12.38 (67) 6.99 (5) IM U.S. Open End Private Real Estate (SA +CF) Median 2.06 10.89 10.89 12.83 12.79 4.71 Intercontinental 3.88 (1) 13.30 (17) 13.30 (17) 13.79 (29) 14.58 (28) 14.76 (30) 10/01/2010 NCREIF Fund Index -ODCE 2.05 (52) 10.06 (71) 10.06 (71) 12.44 (62) 12.39 (67) 13.35 (66) IM U.S. Open End Private Real Estate (SA +CF) Median 2.06 10.89 10.89 12.83 12.79 14.00 Returns for periods greater than one year are annualized. Returns are expressed as percentages. TTIE 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 19 /r , BOGDAHN `� GROUP. Comparative Performance - IRR Comparative Performance - IRR As of September 30, 2016 QTR 1 YR Inception Inception Date Crescent Direct Lending Fund 0.00 6.57 5.70 10/14/2014 � THE (�l BOGDAHN ♦~J GROUP. Comparative Performance Fiscal Year Returns ' Comparative Performance Fiscal Year Returns Total Fund As of September 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 -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Total Fund (Net) �5 (17) Total Fund Policy 10.64 (19) All Public Plans -Total Fund Median 9.66 Total Fund (New Mgrs) (Net) 10.75 (17) Total Fund Policy 10.64 (19) All Public Plans -Total Fund Median 9.66 Total Fund (Gross) 11.12 (10) Total Fund Policy 10.64 (19) All Public Plans -Total Fund Median 9.66 Total Fund (New Mgrs) (Gross) 11.12 (10) Total Fund Policy 10.64 (19) All Public Plans -Total Fund Median 9.66 Total Equity Total Equity Policy Total Domestic Equity Total Domestic Equity Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total International Equity MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Total Fixed Income Total Fixed Policy Total Domestic Fixed Income Total Domestic Fixed Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total Global Fixed Income Total Global Fixed Income Policy IM Global Fixed Income (MF) Median Total Real Estate NCREIF Fund Index -ODCE IM U.S. Open End Private Real Estate (SA +CF) Median 0.33.85 (13) 15.72 (7) 18.95 (27) -1.17 (81) 10.67 (32) 0.70 (65) 9.34 13.03 (72) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) -0.54 -4.29 10.17 12.50 17.94 0.22 9.92 (59) 1.59 21.60 (37) -12.96 14.09 0.33 (27) 11.85 (13) 15.72 (7) 18.95 (27) -1.17 (81) 10.66 (32) 0.68 (65) -16.82 (92) N/A 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) -0.54 -8.75 (52) 10.17 12.50 17.94 0.22 9.92 23.63 (55) 1.59 -8.27 -12.96 14.09 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) 10.45 (67) 11.40 (19) 1.43 (52) -16.48 (90) 13.92 (55) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) -0.54 10.17 12.50 17.94 0.22 9.92 1.59 -12.96 14.09 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (67) 11.40 (19) 1.39 (53) -16.46 (90) N/A 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) -0.54 3.57 (99) 10.17 12.50 17.94 0.22 9.92 4.22 (14) 1.59 (78) -12.96 14.09 13.13 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 15.21 (24) -0.59 (61) 17.58 (69) 21.85 (34) 27.76 (62) -3.30 (90) 14.19 (8) -4.29 (38) -21.66 (62) 17.58 (43) 14.96 (27) -0.49 (59) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (30) -6.91 (64) -21.98 (68) 16.44 (60) 13.17 -0.02 19.25 20.66 29.76 1.14 9.46 -5.78 -20.47 16.97 10.74 (28) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) 7.06 (60) -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (55) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (39) 8.35 -9.06 5.72 22.91 15.33 -8.62 5.02 6.39 -27.35 23.87 3.36 -0.59 9.27 4.96 3.57 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 4.21 (98) 2.31 (24) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (11) 9.27 (53) 10.53 (2) 0.64 (1) 4.96 (100) 3.57 (99) 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) 13.17 -0.02 19.25 20.66 29.76 1.14 9.46 -5.78 -20.47 16.97 0.81 (100) -7.63 (90) 6.31 (13) 3.53 (3) N/A N/A N/A N/A N/A N/A 9.71 (13) -3.83 (53) -0.07 (97) -4.60 (85) N/A N/A N/A N/A N/A N/A 7.09 -3.74 3.62 -1.52 7.30 1.67 7.85 13.54 -1.60 7.41 �) 14.2 .47 (39) 16.42 (20) 12.81 (54) 'J111JUL 2.71 (77) -32.42 (3 10.06 (71) 14.93 (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) 10.89 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. TTIE 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. Intercontin. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 21 (� , BOGDAHN ♦~J GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2016 Returns for periods greater than one year are annualized. Returns are expressed as percentages. �� TTIE 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. Intercontin. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 BOGDAHN �-� GROUP. 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 -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Lateef Asset Mgmt.Equity N/A N/A N/A N/A 33.21 (9) -1.17 (75) 11.93 (44) 0.53 (22) -15.13 (16) N/A Russell 1000 Growth Index 13.76 (23) 3.17 (55) 19.15 (40) 19.27 (65) 29.19 (38) 3.78 (30) 12.65 (36) -1.85 (37) -20.88 (54) 19.35 (57) IM U.S. Large Cap Growth Equity (SA +CF) Median 11.69 3.61 18.15 20.29 27.64 1.37 11.29 -3.03 -20.30 20.19 RBC Global (Voyageur) 10.74 (28) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (100) 11.69 (15) 11.87 (20) N/A N/A MSCI EAFE Index 7.06 (60) -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (55) -8.94 (100) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median 8.35 -9.06 5.72 22.91 15.33 28.71 5.02 6.39 -27.35 23.87 Vanguard Total Stock Market (VITSX) 15.00 (12) -0.59 (33) 17.77 (30) N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 14.99 (12) -0.55 (32) 17.77 (30) 21.60 (59) 30.28 (16) 0.71 (23) 11.16 (29) -6.03 (56) -21.19 (31) 16.98 (45) IM U.S. Multi -Cap Core Equity (MF) Median 11.32 -1.78 16.16 22.77 26.38 -1.76 9.52 -5.49 -22.80 16.59 Galliard Core Fixed Income 4.36 (24) 3.04 (26) 3.15 (36) -0.64 (74) 5.82 (45) 4.16 (27) 9.63 (17) 12.08 (38) -1.68 (95) N/A Bloomberg Barclays Intermed Aggregate Index 3.57 (71) 2.95 (30) 2.74 (57) -0.71 (77) 4.31 (83) 4.22 (23) 7.52 (77) 9.69 (81) 4.16 (36) 5.33 (69) IM U.S. Intermediate Duration (SA +CF) Median 3.88 2.70 2.87 -0.28 5.57 3.60 8.25 11.50 3.26 5.49 Galliard TIPS 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A Blmbg. Barc. U.S. TIPS 1 -10 Year 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 Vanguard Short Term Bond Index (VSCSX) 3.40 (24) N/A N/A N/A N/A N/A N/A N/A N/A N/A Blmbg. Barc. U.S. Corporate 1 -5 Year Index 3.33 (28) 1.98 (14) 2.46 (28) 1.47 (15) 6.29 (30) 1.83 (59) 8.25 (38) 16.02 (2) -2.84 (73) 5.04 (14) IM U.S. Intermediate Investment Grade (MF) Median 2.73 1.21 1.70 -0.55 5.02 2.00 7.53 10.48 -0.19 4.28 Templeton Global Bond Fund (FBNRX) 0.83 (100) -7.63 (91) 6.33 (13) 3.54 (3) N/A N/A N/A N/A N/A N/A Citigroup World Government Bond Index 9.71 (13) -3.83 (53) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (9) 4.99 (95) 13.78 (49) 5.90 (6) 8.69 (32) IM Global Fixed Income (MF) Median 7.09 -3.74 3.62 -1.52 7.30 1.67 7.85 13.54 -1.60 7.41 American Core Realty Fund 9.04 (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 American Core Realty Policy 10.62 (63) 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 IM U.S. Open End Private Real Estate (SA +CF) Median 10.89 15.93 12.90 13.22 12.90 16.62 6.39 -34.80 3.23 17.15 Intercontinental 13.30 (17) 13.96 (68) 14.10 (34) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A NCREIF Fund Index -ODCE 10.06 (71) 14.93 (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 10.89 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. �� TTIE 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. Intercontin. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 BOGDAHN �-� GROUP. Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 14.00 iC3P • il�Irttl 8.00 • E 6.00 ■ 4.00 2.00 • 0.00 i i i i i i r - QTR FYTD 1 Y 2YR 3YR 4YR 5YR • Total Fund Portfolio 4.26 (11) 11.12 (10) 11.12 (10) 5.75 (t; ) 7.86 (4) 9.92 (2) 11.83 (3) • Total Fund Policy 3.50 (47) 10.64 (19) 10.64 (19) 5.47 (12) 7.41 U 9.26 U 11.25 U Median 3.42 9.66 9.66 4.33 6.20 7.78 9.70 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun -2016 Mar -2016 Dec -2015 Total Fund Portfolio 1.05 (93) 1.27 (36) 4.15 U Total Fund Policy 1.73 (63) 0.98 (53) 4.06 (t; All Public Plans -Total Fund Median 1.91 1.04 2.88 Performance Review Total Fund Portfolio 28.00 24.00 20.00 00 16.00 G O = 12.00 • • rc 8.00 4.00 0.00 • • -4.00 ■ -8.00 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To To To Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 • Total Fund Portfolio 11.12 (10) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (67) • Total Fund Policy 10.64 (19) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) Median 9.66 -0.54 10.17 12.50 17.94 0.22 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 -4.68 (38) 0.58 (12) 2.32 (61) -4.63 (35) 0.40 (19) 2.32 (60) -5.04 -0.11 2.43 0*4 THE 23 l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 20.0 _ Over Performance e 16.0 0 0 0 0 12.0 u 8.0 Under f Performance 4.0 4.0 8.0 12.0 16.0 20.0 Total Fund Policy (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 8.64 8.10 - • e`. 7.56 - O 7.02 - rc 6.48 - 5.94 5.00 5.20 5.40 5.60 5.80 Risk (Standard Deviation %) Return Standard Deviation • Total Fund Portfolio 7.86 • Total Fund Policy 7.41 Median 6.20 Performance Review Total Fund Portfolio 3 Yr Rolling Percentile Ranking - 5 Years x0.0 9 ®08 0 0 800008880889 25.0 00 0088 = O O O 50.0 E -� 75.0 rc 100.0 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count • Total Fund Portfolio 20 • Total Fund Policy 20 Peer Group Scattergram - 5 Years 12.60 11.90 - E11.20 - Q 10.50 - rc 9.80 - 9.10 6.00 6.0 6.2 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) 18 (90 %) 2 (10 %) 0 (0 %) 0 (0 %) 0 1 1 6.4 6.6 6.8 7.0 7.2 Risk (standard Deviation %) Return Standard Deviation 5.76 • Total Fund Portfolio 11.83 5.22 • Total Fund Policy 11.25 5.32 Median 9.70 7.03 6.29 6.24 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.14 106.63 108.46 -0.18 0.40 1.34 1.09 2.76 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.39 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 1.46 107.59 125.59 -0.49 0.39 1.63 1.10 2.60 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.73 1.00 2.26 0*4 THE 24 l� , BOGDAHN ♦'J GROUP. Performance Review VG Total Stock Mkt (VITSX) Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 23.00 44.00 20.00 36.00 17.00 0 00 28.00 14.00 20.00 _ 11.00 0 (5 8.00 12.00 rc rc 5.00 4.00 2.00 00 -4.00 -1.00 -12.00 -4.00 -7.00 t -20.00 r 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 • VG Total Stock Mkt (VITSX) 4.42 (55) 15.00 (12) 15.00 (12) 6.92 (15) 10.42 (13) N/A N/A • VG Total Stock Mkt (VITSX) -0.59 (33) 17.77 (30) N/A N/A N/A N/A • VG Total Stock Mkt Hybrid 4.41 (56) 14.99 (12) 14.99 (12) 6.94 (14) 10.43 (13) 13.13 (24) 16.37 (13) • VG Total Stock Mkt Hybrid -0.55 (32) 17.77 (30) 21.60 (59) 30.28 (16) 0.71 (23) 11.16 (29) Median 4.57 11.32 11.32 4.53 8.43 12.20 14.91 Median -1.78 16.16 22.77 26.38 -1.76 9.52 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 VG Total Stock Mkt (VITSX) 2.67 (20) 0.95 (38) 6.26 (15) -7.26 (37) 0.09 (39) 1.81 (58) VG Total Stock Mkt Hybrid 2.69 (20) 0.95 (38) 6.25 (15) -7.26 (36) 0.08 (39) 1.81 (58) IM U.S. Multi -Cap Core Equity (MF) Median 1.36 0.34 4.86 -8.02 -0.14 2.16 0*4 THE 25 l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years q 11.4 e over x Performance N 10.8 N m 10.5 10.2 10.2 10.5 10.8 VG Total Stock Mkt Hybrid (%) • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 11.22 10.56 e � 9.90 9.24 rc 8.58 7.92 1 1 1 10.75 10.80 10.85 10.90 10.95 Risk (Standard Deviation %) Return Performance Review VG Total Stock Mkt (VITSX) • VG Total Stock Mkt (VITSX) 10.42 10.80 • VG Total Stock Mkt (VITSX) N/A N/A • VG Total Stock Mkt Hybrid 10.43 10.80 • VG Total Stock Mkt Hybrid 16.37 11.33 Median 8.43 11.01 Median 14.91 11.83 Historical Statistics - 3 Years 3 Yr Rolling Percentile Ranking - 5 Years Up Down Information 0.0 Downside Error Market O p 0 0 0 Alpha Ratio Ratio 0 p Risk 25.0 p p O O O O O O p O 50.0 a O O O 0.03 Under 5.0 100.0 -0.02 -0.40 0.97 1.00 Performance 11.1 11.4 12/11 6/12 12/12 6/13 Total Period 12/13 6/14 5 -25 12/14 6/15 12/15 25- Median Median -75 9/16 75 -95 0.00 N/A Count Count Count Count • VG Total Stock Mkt (VITSX) 3 3(100%) 0 (0 %) 0 (0 %) 0 (0 %) • VG Total Stock Mkt Hybrid 20 10(50%) 10(50%) 0 (0 %) 0 (0 %) Peer Group Scattergram - 5 Years Sharpe Downside Error 16.80 Market Alpha Ratio Ratio Beta 16.32 Capture Capture e � 15.84 VG Total Stock Mkt (VITSX) N/A 15.36 rc 14.88 N/A N/A N/A N/A 11.00 11.05 14.40 1 11.20 11.40 1 11.60 11.80 100.00 12.00 0.00 N/A Risk (Standard Deviation %) 5.69 Standard Return Standard Deviation Deviation • VG Total Stock Mkt (VITSX) 10.42 10.80 • VG Total Stock Mkt (VITSX) N/A N/A • VG Total Stock Mkt Hybrid 10.43 10.80 • VG Total Stock Mkt Hybrid 16.37 11.33 Median 8.43 11.01 Median 14.91 11.83 Historical Statistics - 3 Years THE zs (� , BOGDAHN ♦'J GROUP. Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) 0.03 99.95 100.02 -0.02 -0.40 0.97 1.00 6.06 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 N/A 0.97 1.00 6.06 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 N/A 1.39 1.00 5.69 THE zs (� , BOGDAHN ♦'J GROUP. Performance Review RBC Global (Voyageur) Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 20.00 44.00 16.00 36.00 28.00 2.00 • 20.00 8.00 • 2.00 4.00 rc � rc 4.00 0.00 ■ -4.00 -4.00 -12.00 -8.00 -20.00 -12.00 1 1 1 1 1 1 -28.00 1 1 1 1 1 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) 12.89 (3) 10.74 (28) 10.74 (28) 2.91 (16) 5.25 (7) 10.43 (6) 13.15 (6) • RBC Global (Voyageur) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (52) 11.69 (15) • MSCI EAFE Index 6.50 (59) 7.06 (60) 7.06 (60) -0.90 (53) 0.93 (59) 6.33 (53) 7.88 (54) • MSCI EAFE Index -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (55) -8.94 (55) 3.71 (67) Median 7.03 8.35 8.35 -0.61 1.51 6.39 8.10 Median -9.06 5.72 22.91 15.33 -8.62 5.02 Comparative Performance 1 Qtr Ending Jun -2016 1 Qtr Ending Mar -2016 1 Qtr Ending Dec -2015 1 Qtr Ending Sep -2015 1 Qtr Ending Jun -2015 1 Qtr Ending Mar -2015 RBC Global (Voyageur) -5.53 (98) -0.69 (38) 4.56 (36) -10.23 (45) 1.78 (43) 6.14 (14) MSCI EAFE Index -1.19 (45) -2.88 (76) 4.75 (29) -10.19 (43) 0.84 (68) 5.00 (41) IM International Large Cap Value Equity (SA +CF) Median -1.41 -1.69 3.85 -10.77 1.37 4.50 THE 27 (� , BOGDAHN ♦'J GROUP. Performance Review RBC Global (Voyageur) 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 40.0 over ' Performance 1. 0.0 0000 00000000000000 rc 0 30.0 25.0 0 20.0Co� o 50.0 0 0 0 0 0 0 0 0 0 00 0 0 _ O O O 0 0 0 0 c 10.0 0 0 E 75.0 � 0.0 v i m Under Performance 100.0 12111 6112 12112 6113 12113 6114 12114 6115 12115 9116 -10.0 -10.0 0.0 10.0 20.0 30.0 40.0 Total Period 5 -25 25- Median Median -75 75 -95 MSCI EAFE Index I %) Count Count Count Count Over Performance Earliest Date X Latest Date • RBC Global (Voyageur) 20 19 (95 %) 1 (5%) 0 (0%) 0 (0%) MSCI EAFE Index 20 0 (0%) 9 (45 %) 11 (55 %) 0 (0%) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 6.00 • 16.00 24.50 6 14.00 • E 3.00 E 12.00 10.00 1.50 O 8.00 0.00 9.02 9.84 10.66 11.48 12.30 13.12 13.94 14.76 6.00 11.20 11.90 12.60 13.30 14.00 14.70 15.40 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • RBC Global (Voyageur) 5.25 13.67 • RBC Global (Voyageur) 13.15 14.42 • MSCI EAFE Index 0.93 10.02 • MSCI EAFE Index 7.88 11.41 Median 1.51 10.50 Median 8.10 11.61 Historical Statistics - 3 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk RBC Global (Voyageur) 5.56 120.28 95.29 4.43 0.79 0.43 1.02 8.69 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.13 1.00 8.35 Historical Statistics - 5 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk RBC Global (Voyageur) 5.47 116.10 92.51 5.05 0.91 0.89 1.00 9.00 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.61 1.00 8.79 THE zs (� , BOGDAHN ♦'J GROUP. Performance Review Galliard Core Fixed Inc Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 7.38 17.00 6.47 14.00 5.56 - 4.65 00 3.74 � ■ 0 8.00 2.83 5.00 � ■ 1.92 2.00 - L 0.10 01 -1.00 -0.81 -1.72 1 1 1 1 1 1 -4.00 1 1 1 1 1 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 Core Fixed Inc 0.30 (58) 4.36 (24) 4.36 (24) 3.70 (19) 3.51 (23) 2.46 (30) 3.12 (38) • Galliard Core Fixed Inc 3.04 (26) 3.15 (36) -0.64 (74) 5.82 (45) 4.16 (27) 9.63 (17) • Barclays Int Agg Index 0.31 (57) 3.57 (71) 3.57 (71) 3.26 (49) 3.09 (53) 2.12 (66) 2.56 (75) • Barclays Int Agg Index 2.95 (30) 2.74 (57) -0.71 (77) 4.31 (83) 4.22 (23) 7.52 (77) Median 0.36 3.88 3.88 3.25 3.12 2.24 2.85 Median 2.70 2.87 -0.28 5.57 3.60 8.25 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Galliard Core Fixed Inc 1.77 (32) 2.54 (23) -0.29 (25) 1.04 (36) -0.64 (58) 1.51 (42) Barclays Int Agg Index 1.44 (72) 2.31 (55) -0.51 (64) 1.08 (31) -0.67 (61) 1.32 (79) IM U.S. Intermediate Duration (SA +CF) Median 1.58 2.33 -0.43 0.93 -0.61 1.48 0*4 THE 29 l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 15.0 Over Performance °u 10.0 u 5.0 0.0 0.0 5.0 10.0 Barclays Int Agg Index I%) OOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 3.60 23.40 - 3.20 - 3.00 1 1 1 1.78 1.80 1.82 1.84 Risk (Standard Deviation %) Return Performance Review Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years / c 0.0 25.0 00000 00 0 00 0 50.0 0 0 0 0 0 0 0 0 0 0 0 0 0 E 75.0 000000000000000 rc Under 100.0 Performance 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 15.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 0 1 1.86 Standard Deviation • Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 3.40 3.20 e E 3.00 - 2.80 rc 2.60 • 240 7 (35 %) 13 (65 %) 0 (0 %) 0 (0 %) 0 (0 %) 3 (15 %) 10 (50 %) 7 (35 %) E � 1 1 1.88 1.80 1.84 1.88 1.92 1.96 2.00 2.04 2.08 Risk (standard Deviation %) Return Standard Deviation 0 Galliard Core Fixed Inc 3.51 1.86 • Galliard Core Fixed Inc 3.12 2.03 0 Barclays Int Agg Index 3.09 1.79 • Barclays Int Agg Index 2.56 1.85 Median 3.12 1.80 Median 2.85 1.94 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.34 107.66 93.40 0.25 1.24 1.71 1.05 0.74 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 1.60 1.00 0.72 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.39 111.61 94.14 0.42 1.42 1.49 1.05 1.02 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 1.30 1.00 0.98 THE BOGDAHN so `✓ GROUP. Performance Review Galliard TIPS Peer Group Analysis - IM U.S. TIPS (SA +CF) 10.00 17.00 14.00 8.00 - 11.00 6.00 - 8.00 00 00 500 4.00 - 2.00 rc rc _ 2.00 - • ■ -1.00 0.00 - a.00 • -7.00 _ -2.00 - -10.00 -4.00 1 1 1 1 1 1 -13.00 1 1 1 1 1 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 0.63 (86) 4.75 (94) 4.75 (94) 2.15 (75) 1.63 (74) 0.27 (45) 1.39 (80) • 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 0.57 (96) 4.83 (94) 4.83 (94) 1.96 (88) 1.51 (91) 0.13 (80) 1.34 (94) • 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 0.99 6.56 6.56 2.78 2.40 0.26 1.94 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 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Galliard TIPS 1.33 (82) 3.64 (69) -0.88 (98) -0.60 (7) -0.44 (28) 1.90 (2) Barclays US TIPS 1 -10Yr 1.32 (84) 3.60 (75) -0.70 (80) -0.86 (25) -0.15 (18) 1.20 (89) IM U.S. TIPS (SA +CF) Median 1.70 4.32 -0.65 -1.12 -1.06 1.46 0*4 THE 31 l� , BOGDAHN ♦'J GROUP. Performance Review Galliard TIPS 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 12.0 Over Performance F °.�.. 0.0 rc 25.0 08 8.0 a_ u • ° • 4.0 50.0 a O a& 0.0 Under P erformance 75.0 100.0 0 6 0 0 8 8 0 O 0 6 8° a° 0.0 4.0 8.0 12.0 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 -4.0 Barclays US TIPS 1 -10 Yr (%) Total Period 5 -25 25- Median Median -75 75 -95 • over Performance • Under Performance Count Count Count Count Earliest Date X Latest Date • Galliard TIPS 20 2 (10 %) 2 (10 %) 3 (15 %) 13 (65 %) • Barclays US TIPS 1 -10 Yr 20 1 (5 %) 1 (5 %) 2 (10 %) 16 (80 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 2.70 2.40 - 2.20 _ 2.00 e 2.10 e � 1.e0 1.80 1.60 • 1.50 - • 1.40 • 1.20 3.04 3.20 3.36 3.52 3.68 3.84 4.00 4.16 4.32 1.20 3.60 3.80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Galliard TIPS 1.63 3.43 • Galliard TIPS 1.39 3.89 • Barclays US TIPS 1 -10 Yr 1.51 3.28 • Barclays US TIPS 1 -10 Yr 1.34 3.82 Median 2.40 4.09 Median 1.94 4.86 Historical Statistics - 3 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Galliard TIPS 0.99 97.48 92.93 0.07 0.13 0.46 1.04 1.88 Barclays US TIPS 1 -10 Yr 0.00 100.00 100.00 0.00 N/A 0.46 1.00 1.88 Historical Statistics - 5 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Galliard TIPS 0.83 98.97 97.09 0.03 0.07 0.38 1.02 2.40 Barclays US TIPS 1 -10 Yr 0.00 100.00 100.00 0.00 N/A 0.38 1.00 2.39 sz THE (� , BOGDAHN ♦'J GROUP. Performance Review VG ST Bond Index (VSCSX) Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 7.10 17.00 6.20 14.00 5.30 11.00 4.40 8.00 3.50 • 2.60 5.00 rc rc 1.70 2.00 0.80 -1.00 -0.10 -4.00 -1.00 -1.90 1 1 1 1 1 1 -7.00 1 1 1 1 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 • VG ST Bond Index (VSCSX) 0.48 (43) 3.40 (24) 3.40 (24) N/A N/A N/A N/A • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 0.52 (37) 3.33 (28) 3.33 (28) 2.65 (11) 2.58 (14) 2.30 (11) 3.09 (19) • Barclays US Corp 1 -5 Yr Index 1.98 (14) 2.46 (28) 1.47 (15) 6.29 (30) 1.83 (59) 8.25 (38) Median 0.43 2.73 2.73 1.91 1.89 1.36 2.06 Median 1.21 1.70 -0.55 5.02 2.00 7.53 Comparative Performance 1 Qtr Ending Jun -2016 1 Qtr Ending Mar -2016 1 Qtr Ending Dec -2015 1 Qtr Ending Sep -2015 1 Qtr Ending Jun -2015 1 Qtr Ending Mar -2015 VG ST Bond Index (VSCSX) 1.32 (43) 1.75 (34) -0.18 (6) 0.59 (29) -0.22 (33) 1.04 (57) Barclays US Corp 1 -5 Yr Index 1.39 (31) 1.76 (34) -0.37 (23) 0.58 (30) -0.21 (32) 1.24 (23) IM U.S. Intermediate Investment Grade (MF) Median 1.25 1.61 -0.56 0.28 -0.40 1.08 0*4 THE 33 l� , BOGDAHN ♦'J GROUP. Performance Review Templeton Global (FBNRX) Peer Group Analysis - IM Global Fixed Income (MF) 14.00 20.00 16.00 - 11.00 - • • 12.00 - 8.00 - e.00 - 5.00 - 4.00 - • • rc • rc 2.00 - 0.00 - -1.00 - • OPEN -4.00 - -e.00 - -4.00 - • -12.00 - -zoo -16.00 1 1 1 r 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 • Templeton Global (FBNRX) -1.22 (100) 0.83 (100) 0.83 (100) -3.49 (100) -0.32 (98) 0.63 (70) N/A • Templeton Global (FBNRX) -7.63 (91) 6.33 (13) 3.54 (3) N/A N/A N/A • Citigroup World Gvt Bond 0.30 (95) 9.71 (13) 9.71 (13) 2.72 (27) 1.78 (65) 0.15 (79) 0.77 (88) • Citigroup World Gvt Bond -3.83 (53) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (9) 4.99 (95) Median 1.48 7.09 7.09 1.55 2.34 1.34 2.59 Median -3.74 3.62 -1.52 7.30 1.67 7.85 Comparative Performance 1 Qtr Ending Jun -2016 1 Qtr Ending Mar -2016 1 Qtr Ending Dec -2015 1 Qtr Ending Sep -2015 1 Qtr Ending Jun -2015 1 Qtr Ending Mar -2015 Templeton Global (FBNRX) -0.34 (100) 0.13 (100) 2.29 (1) -6.08 (100) -0.24 (10) 0.25 (45) Citigroup Word Gvt Bond 3.41 (10) 7.09 (5) -1.23 (76) 1.71 (1) -1.55 (41) -2.51 (100) IM Global Fixed Income (MF) Median 2.37 3.07 -0.73 -0.35 -1.95 0.12 0*4 THE 34 l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years - 12.0 x' Over z 8.0 Performance m 4.0 O o 0.0 0 X 4.0 -8.0 -8.0 -4.0 0.0 4.0 8.0 Citigroup World Gvt Bond (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 3.00 Performance Review Templeton Global (FBNRX) 3 Yr Rolling Percentile Ranking - 5 Years / x 0.0 O O O u 25.0 00 O O 50.0 5.0 O O O O 0 Under v 00000 0000 O Performance 100.0 00 0 0 1 12.0 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count ems`. 2.00 O E 1.00 0.00 • -1.00 1 1 1 1 3.42 3.80 4.18 4.56 4.94 5.32 5.70 6.08 6.46 Risk (Standard Deviation %) Return Standard Deviation • Templeton Global (FBNRX) 8 3 (38 %) 2 (25 %) 1 (13 %) 2 (25 %) • Citigroup World Gvt Bond 20 0 (0 %) 2 (10 %) 2 (10 %) 16 (80 %) Peer Group Scattergram - 5 Years 3.00 2 2.40 e E 1.80 1.20 rc 0.60 0.00 1 1 1 1 4.53 4.56 4.59 4.62 4.65 4.68 4.71 4.74 Risk (Standard Deviation %) Return Standard Deviation • Templeton Global (FBNRX) -0.32 5.86 • Templeton Global (FBNRX) N/A N/A • Citigroup World Gvt Bond 1.78 4.92 • Citigroup World Gvt Bond 0.77 4.69 Median 2.34 3.91 Median 2.59 4.58 Historical Statistics - 3 Years THE 35 (� , BOGDAHN ♦'J GROUP. Tracking Up Market Down Market Alpha Information Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Templeton Global (FBNRX) 7.71 -20.69 -24.80 -0.12 -0.26 -0.04 -0.02 4.16 Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 N/A 0.37 1.00 3.18 Historical Statistics - 5 Years ' Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture 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 N/A 0.17 1.00 3.22 THE 35 (� , BOGDAHN ♦'J GROUP. Performance Review American Core RE Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 38.00 20.00 32.00 17.00 - 26.00 14.00 - 20.00 11.00 - . 14.00 0 0 8.00 - 8.00 5.00 - 2.00 2.00 - moo&= -4.00 -1.00 - -10.00 -4.00 1 t 1 t 1 -16.00 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 • American Core RE 1.83 (73) 9.04 (95) 9.04 (95) 11.48 (87) 11.82 (78) 11.93 (78) 11.86 (76) • 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 2.18 (40) 10.62 (63) 10.62 (63) 12.65 (54) 12.56 (60) 12.54 (67) 12.38 (67) • American Core RE Policy 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) Median 2.06 10.89 10.89 12.77 12.83 13.01 12.79 Median 15.93 12.90 13.22 12.90 16.62 6.39 Comparative Performance 1 Qtr Ending Jun -2016 1 Qtr Ending Mar -2016 1 Qtr Ending Dec -2015 1 Qtr Ending Sep -2015 1 Qtr Ending Jun -2015 1 Qtr Ending Mar -2015 American Core RE 1.26 (97) 2.63 (53) 3.03 (78) 3.33 (73) 3.75 (49) 4.46 (23) American Core RE Policy 2.18 (63) 2.44 (61) 3.43 (57) 3.63 (49) 3.92 (42) 3.40 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 2.54 2.64 3.57 3.56 3.72 3.55 0*4 THE 36 l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 24.0 Over Performance w 16.0 rc U 8.0 Ev 0.0 a Under -8.0 Performance -8.0 0.0 8.0 16.0 24.0 American Core RE PoliPolicy c • Under Performance Earliest Date X Latest Date roup Scattergram - 3 Years 13.26 12.92 12.58 O 12.24 rc 11.90 • 11.56 1 1 Y 1 1.00 1.20 1.40 1.60 1.80 2.00 Risk (Standard Deviation %) Return Standard Deviation • American Core RE 11.82 1.20 1.71 • American Core RE Policy 12.56 -1.88 1.12 Median 12.83 1.10 1.69 Historical Statistics - 3 Years 0.00 100.00 Tracking Up Down Error Market Market Historical Statistics - 5 Years Capture Captun Performance Review American Core RE 3 Yr Rolling Percentile Ranking - 5 Years 0.0 ° 0 25.0 0 50.0 ° =75.0 °00080 088aoeegoa8 °o 0 100.0 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count • American Core RE 20 • American Core RE Policy 20 Peer Group Scattergram - 5 Years 13.02 12.71 12.40 - • 12.09 rc 11.78 11.47 1 0.80 1.00 0 (0 %) 0 (0 %) 8 (40 %) 12 (60 %) 2 (10 %) 1 (5 %) 14 (70 %) 3 (15 %) 1 ' 1.20 1.40 1.60 1.80 Risk (standard Deviation %) Return Standard Deviation • American Core RE 11.86 1.40 • American Core RE Policy 12.38 1.01 Median 12.79 1.71 Alpha Information Sharpe Beta Downside Ratio Ratio Risk American Core RE 1.20 94.39 N/A -1.88 -0.56 6.47 1.10 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 10.33 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 95.95 N/A -0.46 -0.50 7.96 1.00 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 11.33 1.00 0.00 THE 37 (� , BOGDAHN ♦'J GROUP. Performance Review Intercontinental Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 38.00 20.00 32.00 17.00 26.00 14.00 20.00 11.00 14.00 rc rc 8.00 8.00 5.00 2.00 2.00 -4.00 -1.00 -10.00 -4.00 -16.00 r t 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 • Intercontinental 3.88 (1) 13.30 (17) 13.30 (17) 13.63 (37) 13.79 (29) 14.88 (26) 14.58 (28) • Intercontinental 13.96 (68) 14.10 (34) 18.21 (10) 13.38 (43) 15.68 (77) N/A • NCREIF Fund Index 2.07 (49) 10.08 (71) 10.08 (71) 12.48 (57) 12.45 (62) 12.60 (66) 12.40 (67) • NCREIF Fund Index 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) Median 2.06 10.89 10.89 12.77 12.83 13.01 12.79 Median 15.93 12.90 13.22 12.90 16.62 6.39 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Intercontinental 1.87 (79) 1.15 (97) 5.84 (4) 3.67 (49) 3.37 (64) 1.18 (100) NCREIF Fund Index 2.13 (65) 2.18 (65) 3.34 (63) 3.68 (48) 3.82 (45) 3.39 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 2.54 2.64 3.57 3.56 3.72 3.55 THE ss l� , BOGDAHN \'J GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 18.0 0 e Performance 16.0 - 00 0 b 000 14.0 0 12.0 / Under 10.0 Performance 10.0 12.0 14.0 16.0 18.0 NCREIF Fund Index I%) • Over Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 14.26 13.80 • e � 13.34 12.88 12.42 - 11.96 1 1 1 0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60 Risk (Standard Deviation %) Return Standard Deviation • Intercontinental 13.79 • NCREIF Fund Index 12.45 Median 12.83 Performance Review Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 0.0 25.0 0 0 0 0 Q Q Q Q 0 Q 0 0 50.0 0 Q Q 0 0 E 75.0 0 0 0 0 y 75.0 OO 00 OOQ 00 1k -milk rc 100.0 T- 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count • Intercontinental 13 1 (8%) 12 (92 %) 0 (0 %) 0 (0 %) • NCREIF Fund Index 20 0 (0 %) 4 (20 %) 15 (75 %) 1 (5%) Peer Group Scattergram - 5 Years 15.00 14.25 - e � 13.50 - 12.75 O 12.00 - 11.25 1 1 1 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation 3.09 • Intercontinental 14.58 1.17 • NCREIF Fund Index 12.40 1.69 Median 12.79 2.85 1.09 1.71 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.81 110.56 N/A 0.13 0.45 4.21 1.09 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 9.80 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 2.75 116.98 N/A 5.34 0.73 4.83 0.73 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 10.57 1.00 0.00 0*4 THE 39 l� , BOGDAHN \'J GROUP. Private Equity Fund Overview Crescent Direct Lending Fund As of September 30, 2016 Fund Information 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 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: $2,115,328 Management Fees: $692 Expenses: $64,505 Interest: - Total Contributions: $2,115,328 Remaining Capital Commitment: $637,250 Total Distributions: $848,371 Market Value: $1,362,644 Inception Date: 10/14/2014 Inception IRR: 5.7 TVPI: 1.0 B Cash Flow Analysi $2,860,000.0 $2,288,000.0 $1,716,000.0 $1,144,000.0 $572,000.0 $0.0 ($572,000.0) r 10/14 1/15 4/15 7/15 — Net Asset Value 0 Distribution 1 r 10/15 1/16 4/16 7/16 10/16 0 Contributions (� ,THE BOGDAHN 40 l J GROUP. Total Fund Policy Allocation Mandate Jan -1976 S &P 500 Index Bloomberg Barclays U.S. Aggregate Index MSCI EAFE Index Oct -2003 S &P 500 Index Bloomberg Barclays U.S. Aggregate Index MSCI EAFE Index Sep -2006 S &P 500 Index Bloomberg Barclays Intermed Aggregate Index Oct -2009 Russell 3000 Index Bloomberg Barclays Intermed Aggregate Index MSCI EAFE Index Bloomberg Barclays U.S. TIPS Index NCREIF Property Index Oct -2010 Russell 3000 Index Bloomberg Barclays Intermed Aggregate Index MSCI EAFE Index Bloomberg Barclays U.S. TIPS Index NCREIF Fund Index -Open End Diversified Core (EW) 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 September 30, 2016 Weight I%) American Realty Policy Total Equity Policy 100.00 !fight (%) Allocation Mandate Weight I%) 100.00 NCREIF Property Index Jan -1970 Oct -2010 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 Sep -2006 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 I%) 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 I%) 10.00 Nov -2000 Bloomberg Barclays U.S. Aggregate Index 100.00 Sep -2006 Bloomberg Barclays Intermed Aggregate Index 100.00 Weight I%) 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 (EW) 100.00 THE 41 (� , BOGDAHN \~J GROUP. Compliance Checklist Total Fund Winter Springs GE As of September 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: --mvEr AV 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.- - 0.41 of bonds is rated BB, since this is below the threshold of 1. marked in compliance 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. 42 Vanguard Total Yes No NIA Yes No NIA Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA ✓ ✓ Yes No NIA Yes No NIA Yes No NIA RBC Global Galliard TIPS VG Short BD Yes No NIA Yes No NIA Yes No NIA Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA ✓ ✓ Yes No NIA Yes No NIA NowNw- Vanguard Total Stock Market (VITSX) Total Domestic Equity EWW RBC Global (Voyageur) Total International Equity Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Domestic Fixed Income Templeton Global Bond Fund (FBNRX) Total Global Fixed Income Crescent Direct Lending Fund Total Other Fixed Income I nterco nti ne ntal American Core Realty Fund Total Real Estate Receipt & Disbursement Total Fund Estimated Annual Fee 1/1 0.04 0.04 0.95 0.95 0.25 0.15 0.12 0.21 0.51 0.51 1.35 1.35 1.10 1.10 1.10 0.37 Market Value 1$1 21,225,417 21,225,417 5,718,627 5,7� 4,736,754 1,232,715 1,100, 208 7,0� 1,144, 225 1,144,225 1,362,644 1,362,644 2,714,101 1,994,730 4,708,831 431,060 41,660,480 Winter Springs General Employees General Plan and Trust Fee Analysis As of September 30, 2016 Estimated Annual Fee 1$1 8,490 8,490 54,327 54,327 11,842 1,849 1,320 15,011 5,836 5,836 18,396 18,396 29,855 21,942 51,797 153,857 Fee Schedule 0.04 % of Assets 0.95 % of Assets 0.25 % of Assets 0.15 % of Assets 0.12 % of Assets 0.51 % of Assets 1.35 % of Assets 1.10 % of Assets 1.10 % of Assets THE 43 (� , BOGDAHN ♦'J GROUP. Disclosures Total Fund As of September 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 (�l BOGDAHN ♦~J 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. Distributed to Paid In (DPI) The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. 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 higherfactor 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. Total Value to Paid In (TVPI) The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund's life 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. 45 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. This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. 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 from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way 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, 2012. 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 for a 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 forthe formatting or configuration of this material orfor 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 yourjurisdiction. Past financial performance is not guarantee of future results. THE BOGDAHN `J GROUT. simplifying }viur iuvesrmenr uud Jidudary dedsions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland f Detroit I Pittsburgh I Tulsa