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Home My WebLink About2017 02 15 Regular 502 Quarterly Investment Return ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 502 February 15, 2017 Regular Meeting REQUEST: Informational Consent Public Hearings Regular I X Mgr. / Authorization Dept. The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The First Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (46 Pages) Investment Performance Review Period Ending December 31, 2016 Winter Springs General Employees Plan and Trust Attachment A AndCo Consulting 1 (844) 44 -ANDCO I AndCo Consulting. com Formerly The Bogdahn Group AndCo Firm Rebrand On the cover of your standard quarterly report, and on all documents we will be sending to you going forward, you will notice your name comes before ours. That is not by accident. Everything from the services we provide to how we are structured as an organization is designed to ensure that you, our client, comes first. We take our role as an independent institutional consulting firm and plan fiduciary very seriously, and we believe this approach and philosophy adds real value to our clients. To ensure that the client always comes first in the service equation and that our fiduciary responsibility is never compromised, the important principles of independence, objectivity and transparency are embodied in our mission and vision statements and define who we are as an organization. They are engrained in our culture and corporate values and used to guide our actions every day. Over the years, the investment environment has grown more complex and we've seen our staff grow and our expertise and services advance to serve our expanding clientele. To strengthen business continuity and meet the needs of our clients, we recently began a program to broaden employee ownership of our firm. Inherently, as we thought about our mission (To represent the sole interest of our clients by redefining independence), vision (To be a transformational organization viewed as the leader in our industry), and the passion behind our service culture, we wanted to do something significant that would better reflect who we are as an organization and how we never compromise our client -first mentality and service philosophy. Why a Company Rebrand? After more than a decade of growth and original brand equity, why would a company rebrand now? Though client -first consulting has been a cornerstone of our company since its inception, with the milestone of transitioning majority ownership from our founder to the firm's next generation of leadership, it became the perfect opportunity to reintroduce ourselves to the world as AndCo. We have always believed the assets of our firm were the collective body of individuals working together to serve our clients. It has always been bigger than one or even a handful of people. We feel this rebrand is a better reflection of this belief and conviction along with our mission and vision. Our team members could work at other places but they choose to work at AndCo because they believe this approach is better for clients. Business will continue as usual, as the leadership and team you have come to know and trust will not be impacted by this rebrand. Wny HnaCo? As AndCo, we want your first impression to be our commitment to client -first consulting. Our promise to you spans from our very foundation up to the name on our building. Most importantly, this company rebrand sets the stage for the future of our firm, and your place in it. At AndCo, it is always: 10 Our Clients Broad asset class returns were mixed for the 4th quarter. Domestic equity indices posted positive performance for the quarter, while broad international equity and fixed income benchmarks were negative for the period. The quarter's investment cycle was dominated first by the U.S. presidential election, and then by the largely anticipated Federal Reserve (Fed) interest rate hike in December. The uncertainty that drove equity returns lower during the first half of the quarter gave way to a string of positive macroeconomic data and a Trump victory that drove equity benchmarks, particularly in the U.S., higher through the remainder of the quarter. Trump's platform of strengthening infrastructure, deregulation, and lower personal and corporate taxes drove expectations higher for both domestic growth and inflation. The broad market Russell 3000 Index returned 4.2% for the quarter. The small cap Russell 2000 Index more than doubled performance of other capitalization indices with a return of 8.8% for the quarter and a strong 21.3% for the trailing one -year period. International equity market benchmarks stumbled during the quarter with the broad market MSCI ACWI ex U.S. Index posting a return of -1.3% for the period in U.S. dollar (USD) terms. Despite the difficult quarter, the broad market index returned a moderate 4.5% for 2016. Developed markets ( -0.7 %) outperformed emerging markets (4.2 %) for the quarter as developed market economic data was generally positive. However, emerging markets substantially outperformed developed markets for the one -year period with the MSCI Emerging Markets Index returning 11.2% versus a return of 1.0% for the MSCI EAFE Index. The quarter's strong economic backdrop led the Federal Open Market Committee (FOMC) to follow through on investors' expectations and raise short -term interest rates for the first time in 2016. The same events that drove domestic equity markets higher were a headwind for fixed income markets. As a result, the U.S. Treasury yield curve rose dramatically during the quarter with modestly elevated rates at shorter maturities and larger increases in mid - to -long -term maturities. All investment grade benchmarks were negative for the quarter, but the mortgage- backed securities sector was down less than other investment grade sectors due to its shorter duration. Although the 4th quarter took back some of 2016's earlier gains, investment grade benchmarks finished in positive territory for the year. The Bloomberg Barclays Investment Grade Corporate Bond Index was the best performer over the one -year period, advancing a solid 6.1 %. Corporate issues benefited from increased demand for yield which led to credit spread compression, especially in lower quality issues. Barclays US Agg 0% Barclays US Govt -3.7% Barclays US TIPS -2.4% Barclays MBS -2.0% Barclays Corp IG .8% 3 -Month T -Bill 0.1% The Market Environment Major Market Index Performance As of December 31, 2016 3.8% 4.2% 3.8% 8.8% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill 4.5% 1.0% Quarter Performance MSCI ACWxUS -1.3% - MSCI EAFE -0.7% C MSCI Emerg Mkts -4.2% S &P 500 12.0% 12.7% Russell 3000 Russell 1000 Russell MidCap Russell 2000 6.1 Barclays US Agg 0% Barclays US Govt -3.7% Barclays US TIPS -2.4% Barclays MBS -2.0% Barclays Corp IG .8% 3 -Month T -Bill 0.1% The Market Environment Major Market Index Performance As of December 31, 2016 3.8% 4.2% 3.8% 8.8% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill 4.5% 1.0% 13.8% 21.3% 11.2% 12.0% 12.7% 12.1 % 2.6% 4.7% 1.7% 6.1 0.3 % 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% C� Source: Investment Metrics 2 ■ U.S. equity index returns were positive across the style and capitalization spectrum for the 41h quarter as well as for calendar year 2016. During the quarter, index returns were driven by encouraging economic data including improvements in GDP growth, employment, housing, and consumer confidence being reported throughout the period. Domestic markets continued to rally after the November presidential election with several domestic indices hitting new highs on expectations resulting from Trump's "market- friendly" policy objectives. While the Fed did increase interest rates in December, the market reaction was relatively tame as the rate hike was widely expected. ■ Small cap benchmarks posted the quarter's strongest performance for both value and growth issues. At the core, the small cap Russell 2000 Index returned a robust 8.8% for the quarter and a stellar 21.3% for the year. Although still positive, the core large cap Russell 1000 Index returned a lower 3.8% for the quarter and 12.1% for the year. This dispersion is not totally outside of the norm as small cap stocks generally outperform large cap stocks during "risk -on" market expansions. Interestingly, mid cap stocks finished behind both small and large cap issues for the quarter. This is partially due to the Russell Midcap Index's higher allocations to the real estate and utilities sectors, which were two of the worst performing sectors for the quarter. ■ Value benchmarks more than doubled their comparable growth benchmarks across the capitalization spectrum for both the quarter and one -year periods. Unlike prior quarters where value index outperformance was driven by exposure to higher yielding "bond proxy" sectors, this quarter's returns were led by exposure to cyclical sectors, particularly financials. Value -style outperformance persists over the one -year period with double -digit returns ranging from an impressive 31.7% for the Russell 2000 Value Index to a still strong 17.3% for the Russell 1000 Value Index. In contrast, growth index performance lagged value results substantially, returning 11.3% and 7.1% for the Russell 2000 Growth and Russell 1000 Growth respectively. ■ Domestic equity valuations appear stretched relative to historical levels based on Forward Price /Earnings ratios (P /E), with even the cheapest relative indices trading marginally above historical valuations. The large and midcap growth indices have valuation levels near their respective historical averages, while the remaining indices fall between 110% and 137% of their 15 -year averages. Source: Investment Metrics 3 The Market Environment Domestic Equity Style Index Performance As of December 31, 2016 Quarter Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1.2% 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 0.5% 7.2% 1 4.2% 6.7% 3.8% 5.5% 3.6% 14.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 18.4% 12.7% 7.4 °/ 17.3% 12.1 ° 7.1 20.0% 13.8% 7.3% 31.7% 21.3% 11.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Large cap sector performance spanned a range of nearly 25% during the 41h quarter, with results in five of eleven economic sectors outpacing the Russell 1000 Index return, and eight of eleven sectors posting gains for the period. Financials were the clear leader during the quarter, posting a strong return of 20.4 %, which nearly tripled the result of any other sector. Financials benefited from expectations for potential deregulation as well as the impact of higher interest rates on future profitability. The industrials (7.6 %) and materials (4.9 %) sectors also outperformed for the period as Trump's promise for increased investment in U.S. infrastructure brightened the outlook for both sectors. The energy sector (7.0 %) also posted a solid gain for the quarter as oil prices rose following an OPEC agreement to cut supply in November. Prices rose further after several non -OPEC countries indicated they would also reduce production. The real estate and health care sectors were the weakest performers for the quarter, both posting -4.1% for the period. Real estate and other "bond proxy" sectors such as consumer staples and utilities were impacted by higher interest rates, reducing the demand for more defensive equity issues. The health care sector's weak performance was more symptomatic of the uncertainty surrounding the future of heath care regulation under a new Administration determined to repeal the Affordable Care Act. Despite some divergence in the 4th quarter, sector performance over the one -year period was robust with ten of eleven sectors posting positive results and seven putting up double -digit gains. Small cap sector results were roughly in -line with large caps for the 4th quarter, with five of eleven economic sectors outpacing the Russell 2000 Index return for the quarter and ten of eleven sectors posting positive results for the period. Most of the trends observable in large cap index sector performance also impacted the small cap sectors, but to a larger, positive degree. Similar to large cap issues, higher yielding, defensive sectors lagged the more cyclical, economically sensitive sectors. Over the trailing one -year period the materials, financials, industrials, and energy sectors each posted returns in excess of 30 %. The sole negative small cap sector for the year was health care with a return of -7.5 %. Using S &P 500 sector valuations as a proxy for the market, Forward P/E ratios for five GICS sectors were below their long -term averages at quarter -end. The technology and health care sectors were trading at the largest discount to their long -term average P/E ratios. In contrast, the energy and utilities sector valuations were the most extended relative to their historical P/E ratios. Consumer Disc (12.6 %) Consumer Staples (9.1 %) Energy (7.1 %) Financials (13.8 %) Health Care (13.6 %) Industrials (10.3 %) Info Technology (20.8 %) Materials (3.2 %) Real Estate (3.8 %) Telecom Services (2.5 %) Utilities (3.2 %) The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2016 Russell 1000 2.6% 6.2 % -1.8% 5.7% 7.0 % -4.1% -2.7% 7.6 /o 1.o °r° 1 .1% 4.9% -4.1% 5.6 % ❑Quarter 01 -Year 1.4% 21.4 1% 8.9% 17.2% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Russell 2000 1 ■Quarter 111 -Year Consumer Disc (12.7 %) Consumer Staples (3.0 %) Energy (3.3 %) Financials (18.3 %) Health Care (13.2 %) Industrials (14.4 %) Info Technology (17.6 %) Materials (4.8 %) Real Estate (8.1%) Telecom Services (0.7 %) Utilities (3.8 %) -6.2% -7.5% 7.9 12.7% 6.4 23.1% 18.0% 30.2% 35.1% .4% 8.4% 23.4% 12.5% 3 s.o °% ° 3.4% 11.4% 4.0% 3.2% °r° 3.2% 9.1% zo. 5.3 -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% CJ Source: Morningstar Direct 4 Russell 1000 Apple Inc Top 10 Weighted Weight 2.95% Stocks 1-Qtr Return 3.0% 1-Year Return 12.5% Sector Information Technology Microsoft Corp 2.19% 8.6% 15.1% Information Technology Exxon Mobil Corp 1.75% 4.3% 19.9% Energy Johnson & Johnson 1.47% -1.8% 15.3% Health Care JPMorgan Chase & Co 1.46% 1 30.5% 34.6% Financials Berkshire Hathaway Inc B 1.43% 12.8% 23.4% Financials Amazon.com Inc 1.35% - 10.4% 10.9% Consumer Discretionary General Electric Co 1.35% 7.5% 4.6% Industrials AT &T Inc 1.22% 6.0% 29.9% Telecommunication Services Facebook Inc A 1.20% - 10.3% 9.9% Information Technology EL. Top CVR Energy Inc 10 Performing Weight 0.00% Stocks (by 1-Qtr Return 91.7% Quarter) 1 RA - 27.2% Energy CoreCivic Inc 0.01% 79.4% 0.8% Real Estate United States Steel Corp 0.02% 75.4% 319.6% Materials California Resources Corp 0.00% 70.3% -8.6% Energy NVIDIA Corp 0.25% 56.0% 226.9% Information Technology SVB Financial Group 0.04% 55.3% 44.4% Financials KeyCorp 0.09% 50.9% 42.1% Financials EP Energy Corp A 0.00% 49.5% 49.5% Energy Goldman Sachs Group Inc 0.43% 48.9% 34.9% Financials SLM Corp 0.02% 47.5% 69.0% Financials The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2016 w 1w lFurssell 2000 Advanced Micro Devices Inc �� Sector Information Technology Microsemi Corp 0.33% gow A 7Puma 0.00% 55.2% N/A Information Technology technology Inc 0.00% - 54.2% - 60.8% Health Care ty Health Systems Inc 0.00% - 51.6% -74.5% Health Care A 0.00% - 50.7% - 75.3% Information Technology GoPro Inc A 0.00% -47.8% - 51.6% Consumer Discretionary Hertz Global Holdings Inc 0.01% -46.3% -61.8% Industrials GNC Holdings Inc 0.00% - 45.1% -63.0% Consumer Discretionary Alnylam Pharmaceuticals Inc 0.01% -44.8% - 60.2% Health Care Juno Therapeutics Inc 0.01% - 37.2% - 57.1% Health Care Groupon Inc 0.01% -35.5% 8.1% Consumer Discretionary The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2016 w 1w lFurssell 2000 Advanced Micro Devices Inc Weight 1-Qtr 1-Year Return Return 0.45% 64.1% 295.1% Sector Information Technology Microsemi Corp 0.33% 28.6% 65.6% Information Technology Webster Financial Corp 0.26% 43.7% 50.0% Financials Prosperity Bancshares Inc 0.26% 31.4% 53.5% Financials Bank of the Ozarks Inc 0.25% 1 37.5% 8.0% Financials RSP Permian Inc 0.23% 15.1% 82.9% Energy Curtiss - Wright Corp 0.23% 8.2% 44.4% Industrials EMCOR Group Inc 0.23% 18.8% 48.2% Industrials Aspen Technology Inc 0.23% 16.9% 44.8% Information Technology PrivateBancorp Inc 0.23% 18.0% 32.2% Financials Top 10 Performing Stocks (by Quarter) 1-Qtr 1-Year Sector sell 200 Weight 0 Return Return Wins Finance Holdings Inc 0.01% 508.7% 1400.0% Financials Key Energy Services Inc 0.00% 293.0% - 66.2% Energy Peabody Energy Corp 0.00% 222.6% - 34.9% Energy Altisource Asset Management Corp 0.00% 189.2% 211.8% Real Estate Seventy Seven Energy Inc 0.00% 138.7% 4185.7% Energy AK Steel Holding Corp 0.17% 111.4% 355.8% Materials Era Group Inc 0.02% 110.8% 52.2% Energy NL Industries Inc 0.00% 107.4% 168.1% Industrials Fred's Inc 0.03% 106.1% 15.6% Consumer Discretionary Pier 1 Imports Inc 0.04% 104.8% 77.9% Consumer Discretionary nor Code Rebel Corp 0.00% -98.0% - 100.0% Information Technology Republic Airways Holdings Inc 0.00% - 93.4% -98.5% Industrials Basic Energy Services Inc 0.00% -92.5% - 97.7% Energy Ophthotech Corp 0.01% -89.5% -93.8% Health Care Cempra Inc 0.01% - 88.4% -91.0% Health Care Violin Memory Inc 0.00% - 88.2% - 98.2% Information Technology Adeptus Health Inc Class A 0.01% - 82.3% -86.0% Health Care 6D Global Technologies Inc 0.00% -80.0% - 99.7% Information Technology Proteon Therapeutics Inc 0.00% - 79.6% - 87.7% Health Care Anthera Pharmaceuticals Inc 0.00% - 79.4% -86.0% Health Care l� Source: Morningstar Direct 5 ■ As the USD versus local currency return charts illustrate, the USD's strength was a major headwind for international index performance during the 4th quarter as well as over the trailing one -year period. The primary factor contributing to the return differentials in 2016 was increasing divergence in U.S. monetary policy (tightening) relative to other developed countries (further accommodation). While the U.S. growth prospects support reduced monetary stimulus, economic data in the Eurozone supports a continuation of monetary accommodation to bolster what has been a slow recovery. As such, the European Central Bank (ECB) lengthened its quantitative easing program, originally scheduled to end in March 2017, to December 2017. Although the program was extended, the ECB reduced the size of monthly purchases from $80 billion euros to $60 billion euros. This economic divergence was further reinforced after the election as Trump's pro - growth policies and protectionist views on trade, if enacted, favor additional USD strength. ■ The 4th quarter's USD performance was negative for both developed ( -0.7 %) and emerging (4.2 %) markets. While emerging market performance ( -1.4 %) was also negative in local currency terms for the period, the currency impact was more pronounced in developed market results with the MSCI -EAFE Index's local currency return of 7.1% representing a 7.9% spread relative to the benchmark's USD returns. While USD strength is also evident in the one -year performance of developed markets (1.0% USD vs. 5.3% local), USD emerging market performance of 11.2% marginally outpaced the emerging market local currency return of 9.7 %. Japanese equities advanced considerably in local currency terms as a weaker yen was viewed as a major tailwind to its export driven economy. The U.K. also posted a solid quarter in local currency terms on the back of a weakening pound sterling and continued stimulus. Despite their local currency return strength, the USD returns of both countries were negative for the quarter with Japan returning -0.2% and the U.K. returning -0.9 %. ■ While the 4th quarter's emerging market results were negatively impacted by rising yields, a stronger USD, and fears surrounding future U.S. trade and foreign policy, one -year performance in emerging markets was more than double the returns posted by developed markets. Although one -year of outperformance does not represent a trend, emerging market investors are hoping for a continuance of 2016's emerging market performance surge after several years of lagging results relative to domestic and developed international equity markets. The Market Environment International and Regional Market Index Performance (Country Count) As of December 31, 2016 Quarter Performance ❑ USD o Local Currency AC World x US (45) -1.3% 4.9 WORLD x US (22) -0.4% 6.9 EAFE (21) -0.7% 7.1 Europe & ME (16) p'5% 5.3 Pacific (5) -1.0% 10.2% Emerging Mkt (23) -4.2% -1.4% EM EM EA (10) 1.8% 3.7% EM Asia (8) -6.1% _3.'% EM Latin Amer (5) -0.9% 1.2% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 1 -Year Performance I oUSD ❑Local Currency AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Source: MSCI Global Index Monitor (Returns are Net) 6 4.5 7.0% 2.s °ro 6.5% 1.o °ro 5.3% -0.7% 6.8% 4.2% 2.3% 11.2% 9.7% 19.9% 12.2% 6.1% 6.9% 31.0% 24.3% I W1, MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 12.5% 1.6% -1.3% Consumer Staples 11.2% -10.3% -2.8% Energy 5.5% 10.4% 26.8% Financials 21.2% 9.5% -1.7% Health Care 10.7% -7.8% -11.8% Industrials 14.0% -1.9% 6.7% Information Technology 5.5% -3.2% 3.6% Materials 7.9% 3.4% 24.3% Real Estate 3.7% -7.4% 2.6% Telecommunication Services 4.5% -6.9% -7.3% Utilities Total 3.4% 100.0% -7.4% -5.5% Consumer Discretionary 11.5% e -0.9% -0.6% Consumer Staples 9.8% -10.1% -1.9% Energy 7.3% 8.3% 31.3% Financials 23.4% 6.8% 4.0% Health Care 8.1% -8.1% -13.1% Industrials 11.7% -2.2% 6.3% Information Technology 9.3% -5.0% 10.7% Materials 8.0% 2.6% 27.6% Real Estate 3.3% -7.9% 1.4% Telecommunication Services 4.7% -6.7% -4.1% Utilities 3.2% -7.2% -3.3% Utilities Total 2.9% 100.0% -6.8% 3.2% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of December 31, 2016 Country MorWeight Japan 24.1% Weight 17.0% Return -0.2% Consumer Discretionary 10.3% -9.5% 0.9% Consumer Staples 7.2% -10.5% 0.4% Energy 7.9% 8.0% 36.5% Financials 24.4% -0.7% 15.0% Health Care 2.5% -9.6% -7.5% Industrials 5.8% -6.2% -1.9% Information Technology 23.3% -6.3% 16.8% Materials 7.4% 4.2% 31.4% Real Estate 2.6% -10.5% -1.8% Telecommunication Services 5.9% -6.2% 2.0% Utilities Total 2.9% 100.0% -6.8% 3.2% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of December 31, 2016 Country MorWeight Japan 24.1% Weight 17.0% Return -0.2% 2.4% United Kingdom 18.3% 12.9% -0.9% -0.1% France 10.2% 7.2% 2.9% 4.9% Germany 9.3% 6.5% 1.5% 2.8% Switzerland 8.7% 6.1% -3.9% -4.9% Australia 7.4% 5.2% 0.7% 11.5% Netherlands 3.3% 2.3% -2.1% 4.8% Hong Kong 3.3% 2.3% -9.0% 2.3% Spain 3.1% 2.2% 2.2% -1.0% Sweden 2.8% 2.0% -0.8% 0.6% Italy 2.1% 1.5% 10.8% -10.5% Denmark 1.7% 1.2% -8.7% -15.8% Singapore 1.2% 0.9% -3.6% 1.4% Belgium 1.2% 0.8% -11.8% -7.6% Finland 1.0% 0.7% -4.4% -4.7% Israel 0.7% 0.5% -11.3% -24.9% Norway 0.7% 0.5% 2.4% 13.3% Ireland 0.5% 0.3% 0.1% -7.1% Austria 0.2% 1 0.1% 1 6.5% 1 11.3% New Zealand 0.2% 0.1% -10.9% 18.4% Portugal 0.2% 0.1% -2.9% 3.60 Canada Total D- 7.1% 3.3% 24.6% China 6.0% -7.11/o 0.9% Korea 3.3% -5.6% 8.8% Taiwan 2.8% -2.2% 18.5% India 1.9% -8.0% -1.4% Brazil 1.7% 2.1% 66.2% South Africa 1.6% -4.1% 17.9% Russia 1.0% 18.6% 54.8% Mexico 0.8% -7.9% -9.2% Indonesia 0.6% -7.8% 17.0% Malaysia 0.6% -8.4% -3.9% Thailand 0.5% -1.8% 26.6% Philippines 0.3% -12.8% -6.6% Chile 0.3% 2.2% 15.6% Poland 0.3% 3.4% 0.1% Turkey 0.2% -13.7% -8.5% Qatar 0.2% 0.7% 6.3% United Arab Emirates 0.2% -1.5% 13.6% Colombia 0.1% -2.3% 26.5% Peru 0.1% 2.5% 55.6% Greece 0.1% 15.3% -12.1% Hungary 0.1% 9.3% 35.4% Czech Republic 0.0% -3.4% -5.0% Egypt 0.0% -23.3% -11.5% l� Source: MSCI Global Index Monitor (Returns are Net in USD) 7 ■ After defying logic and market expectations with solid positive results for most of 2016, fixed income benchmarks fell across various sectors and quality segments during the 4th quarter as the reality of higher interest rates and inflation expectations exerted their powerful impact on yields. On the interest rate front, market rates rose through the quarter as investors prepared for a telegraphed, and ultimately realized, interest rate increase of 25 basis points (bps) by the Fed. The December increase was supported by continued improvement in the U.S. economy, and represented the sole Fed rate increase for 2016. On the inflation front, Donald Trump's victory in the U.S. presidential election also played a role in the quarter's negative fixed income results as market expectations after the victory shifted sentiment toward potentially higher inflation and economic growth. ■ Looking through the quality lens, each of the fixed income quality segment benchmarks (with the exception of high yield) finished the 4th quarter down roughly -3 %. The high yield (lower quality) benchmark was the only index to post a positive result for the quarter with a return of 1.8 %. The high yield index benefited from its lower duration (less interest rate sensitivity) as well as a steady compression in credit spreads that offset the impact of generally higher market yields. Extending the comparison to the one -year period, the quality benchmarks all posted positive results with annual returns displaying an inverse relationship with their quality. ■ Examining results on a sector basis shows the nominal Treasury sector feeling the largest impact from the yield curve shift with a 4th quarter return of -3.8 %. The lower- duration TIPS index returned -2.4% for the quarter. The mortgage sector posted the quarter's best relative result with a return of -2.0% benefiting from its lower duration. Given the previously mentioned negative impact of USD strength on foreign investments, the 4th quarter was a particularly difficult quarter for global fixed income markets with the Global Aggregate ex -U.S. index returning - 10.3 %. Despite the 4th quarter's negative index results, each sector and global benchmark posted positive results for the trailing one -year period. The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of December 31, 2016 AAA (5.4) AA (6.2) A (7.5) Baa (7.3) U.S. High Yield (4.1) U.S. Treasury (6.1) U.S. Mortgage (4.6) U.S. Corporate IG (7.3) U.S. TIPS (4.9) Aggregate (5.9) Intermediate Agg (4.3) Global Agg x US (7.8) Multiverse (6.7) Quarter Performance -3.0% -3.1 -3'2% 2.7% 1.8% -3.8% -2.0% -2.8% -2.4% -3.0% -2.0% - 10.3% -6.7% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% AAA (5.4) AA (6.2) A (7.5) Baa (7.3) U.S. High Yield (4.1) U.S. Treasury (6.1) U.S. Mortgage (4.6) U.S. Corporate IG (7.3) U.S. TIPS (4.9) ■ The Fed stated that future rate increases will be implemented at a Aggregate (5.9) measured pace and will be based on an ongoing assessment of current Intermediate Agg (4.3) economic data. However, future policy action by the new Trump Global Agg x US (7.8) Administration and global economic developments will likely impact the Multiverse (6.7) pace of future interest rate increases as well. Source: Barclays Capital Live 8 1 -Year Performance 0.0% 2.0% 1.4% 3.1% 4.7% 0 ° 17.1% 1.0% 1.7% 6.1% 4.7% 2.6% 2.0% 1.5% 2.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The 1-Year Trailing Market Rates' chart illustrates that after trading in a tight range for most of the year, the 10 -year Treasury yield (green line) rose dramatically over the final months of 2016, closing at a yield (2.45 %) near its one -year high. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread). This measure quantifies the additional yield premium that investors require to purchase and hold non - Treasury issues. The steady decline in credit spreads throughout 2016 is equivalent to an interest rate decrease on corporate bonds, which results in a tailwind for corporate bond index returns. While there was some upside momentum in credit spreads early in 2016, they have narrowed by over 1.25% 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 and clearly illustrates the unrest that materialized in Treasury yields during the 4th quarter. While each of the last three quarter -end yield curves show a fairly tight distribution, the December 31St reading is higher at all maturities with both short- and long- term rates finishing 2016 near the high end of their respective 12 -month trading ranges. This upward shift caused yields to rise an average of 22 bps for maturities of less than one -year, 60 bps for the two- to five -year maturity range, and 81 bps for the seven- to thirty -year maturity range. Greater yield increases at the longer end of the curve represent a "steepening" of the yield curve which conveys market anticipation of higher interest rates in the future. Given the magnitude of the increase in yields that occurred during the period, it is no surprise that most fixed income indices finished the quarter in negative territory. In a rising rate environment, it is also expected that longer- duration market indices will fall more than equivalent lower- duration benchmarks. Finally, while global benchmarks are impacted by the same yield and duration factors as domestic benchmarks, they have the additional powerful lever of currency impact. This currency effect can either be an offsetting benefit to negative yield and duration factors in a rising rate environment or an exacerbation of negative performance as it was during the 4th quarter. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of December 31, 2016 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury 10yr TIPS 0.00 Dec -15 Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 Jul -16 Aug -16 Sep -16 Oct -16 Nov -16 Dec -16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Source: US Department of Treasury FRED (Federal Reserve of St. Louis) 9 Treasury Yield Curve X3/31/2016 X6/30/2016 o 9/30/2016 12/31/2016 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Asset Allocation By Segment as of September 30, 2016 : $4196929898 Allocation Allocation Asset Allocation Summary Total Fund As of December 31. 2016 Asset Allocation By Segment as of December 31, 2016 : $4390309492 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 21,225,417 50.9 _ Domestic Equity 22,099,161 51.4 m International Equity 5,718,627 13.7 m International Equity 5,766,106 13.4 • Domestic Fixed Income 7,062,241 16.9 ■ Domestic Fixed Income 8,292,685 19.3 Other Fixed Income 1,395,062 3.3 Other Fixed Income 1,450,253 3.4 • Real Estate 4,684,872 11.2 ■ Real Estate 4,804,774 11.2 • Cash Equivalent 462,454 1.1 ■ Cash Equivalent 617,512 1.4 Global Fixed Income 1,144,225 2.7 Global Fixed Income - 0.0 10 Asset Allocation By Manager as of September 30, 2016 : $4196929898 Allocation Market Value Allocation Allocation Asset Allocation By Manager as of December 31, 2016 : $4390309492 Asset Allocation Summary Total Fund As of December 31. 2016 Market Value Allocation Vanguard Total Stock Market (VITSX) 21,225,417 50.9 Vanguard Total Stock Market (VITSX) 22,099,161 51.4 RBC Global (Voyageur) 5,718,627 13.7 RBC Global (Voyageur) 5,766,106 13.4 Galliard Core Fixed Income 4,736,754 11.4 Galliard Core Fixed Income 4,632,926 10.8 Intercontinental 2,714,101 6.5 Intercontinental 2,839,950 6.6 • American Core Realty Fund 1,994,730 4.8 ■ American Core Realty Fund 1,988,901 4.6 Crescent Direct Lending Fund 1,395,062 3.3 Crescent Direct Lending Fund 1,450,253 3.4 Galliard TIPS 1,232,715 3.0 ■ Vanguard Inflation- Protected Secs (VAIPX) 1,366,526 3.2 Templeton Global Bond Fund (FBNRX) 1,144,225 2.7 Galliard TIPS 1,210,121 2.8 Vanguard Short Term Bond Index (VSCSX) 1,100,208 2.6 Vanguard Short Term Bond Index (VSCSX) 1,091,989 2.5 Receipt & Disbursement 431,060 1.0 Receipt & Disbursement 584,559 1.4 • Vanguard Inflation- Protected Secs (VAIPX) - 0.0 Templeton Global Bond Fund (FBNRX) - 0.0 11 Asset Allocation vs. Target Allocation Total Domestic Equity Total International Equity Total Domestic Fixed Income Total Global Fixed Income -5.0% Total Real Estate Total Other Fixed Income Receipt & Disbursement -10.0% -8.0% -6.0% Allocation Differences Asset Allocation vs. Target Allocation Market Value Total Domestic Equity 22,099,161 Total International Equity 5,766,106 Total Domestic Fixed Income 8,301,561 Total Global Fixed Income - Total Real Estate 4,828,851 Total Other Fixed Income 1,450,253 Receipt & Disbursement 584,559 Total Fund 43,030,492 1.4% -1.6% M N1.2% -1.6% -4.0% -2.0% 0.0% 12 Allocation (% 51.4 13.4 19.3 11.2 3.4 1.4 100.0 1.4% 2.0% Asset Allocation vs. Target Allocation Total Fund As of December 31, 2016 4.3% 4.0% 6.0% 8.0% Target (% 50.0 15.0 15.0 5.0 10.0 5.0 0.0 100.0 10.0% Historical Asset Allocation by Portfolio Total Equity Total Domestic Equity Vanguard Total Stock Market (VITSX) Total International Equity RBC Global (Voyageur) Total Fixed Income Total Domestic Fixed Income Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Vanguard Inflation- Protected Secs (VAIPX) Total Global Fixed Income Templeton Global Bond Fund (FBNRX) Total Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Dec -2016 26,944,044 64.63 27,866,267 64.76 22,099,161 61.36 22, 099,161 51.36 6,766,106 13.40 5,766,106 13.40 9,761,814 22.66 8,301,661 19.29 4,632,926 10.77 1,210,121 2.81 1,091,989 2.54 1,366,526 3.18 - 0.00 - 0.00 1,460,263 3.37 1,450,253 3.37 4,828,861 11.22 1,988,901 4.62 2,839,950 6.60 684,669 1.36 43,030,492 100.00 Sep -2016 431,060 1.03 41,692,898 100.00 13 Jun -2016 26,944,044 64.63 21,226,417 60.91 21,225,417 50.91 6,718,627 13.72 5,718,627 13.72 9,608,964 23.06 7,069,677 16.96 4,736,754 11.36 1,232,715 2.96 1,100,208 2.64 - 0.00 1,144,226 2.74 1,144,225 2.74 1,396,062 3.36 1,395,062 3.35 4,708,831 11.29 1,994,730 4.78 2,714,101 6.51 431,060 1.03 41,692,898 100.00 13 Jun -2016 24,130,792 61.71 26,393,396 63.46 20,327,433 60.80 20,327,433 50.80 6,066,963 12.66 5,065,963 12.66 9,416,061 23.63 7,042,827 17.60 4,722,752 11.80 1,225,121 3.06 1,094,954 2.74 - 0.00 1,166,863 2.91 1,165,853 2.91 1,206,381 3.02 1,206,381 3.02 4,606,123 11.61 1,988,289 4.97 2,616,834 6.54 698,414 1.60 40,011,994 100.00 Asset Allocation Asset Allocation History By Portfolio As of December 31, 2016 Mar -2016 24,130,792 61.71 26,162,277 63.47 19,799,027 49.96 19,799,027 49.95 6,363,260 13.63 5,363,250 13.53 9,660,796 24.09 7,130,006 17.99 4,640,688 11.71 1,209,173 3.05 1,280,146 3.23 - 0.00 1,178,212 2.97 1,178,212 2.97 1,242,677 3.13 1,242,577 3.13 4,666,700 11.62 1,992,671 5.03 2,573,029 6.49 362,661 0.91 39,641,433 100.00 Dec -2016 24,130,792 61.71 18,729,194 47.90 18,729,194 47.90 6,401,698 13.81 5,401,598 13.81 9,378,800 23.99 7,248,447 18.64 4,722,477 12.08 1,166,900 2.98 1,359,069 3.48 - 0.00 1,187,481 3.04 1,187,481 3.04 942,872 2.41 942,872 2.41 4,618,286 11.66 1,970,208 5.04 2,548,078 6.52 1,072,868 2.74 39,100,736 100.00 3 Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 L' _ 9/07 3/08 9/08 Domestic Equity Other Fixed Income 3/09 9/09 3/10 International Equity Real Estate 9/10 3/11 9/11 Domestic Fixed Income Cash Equivalent 3/12 9/12 3/13 9/13 Global Fixed Income 14 Historical Asset Allocation by Segment Total Fund October 1, 2007 To December 31, 2016 3/14 9/14 3/15 9/15 3/16 12/16 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of December 31, 2016 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 O 12.0 4.0 O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 51.36 (18) 13.40 (58) 19.29 (83) N/A 3.37 (89) 11.22 (18) 1.36 (52) 5th Percentile 57.23 25.64 45.68 9.94 35.28 13.62 7.41 1 st Quartile 50.16 19.05 35.01 5.32 19.67 10.20 2.40 Median 43.46 14.07 28.79 4.74 12.23 7.52 1.38 3rd Quartile 34.92 11.15 21.66 3.17 5.30 5.13 0.78 95th Percentile 21.28 7.16 13.50 0.09 1.64 2.71 0.12 CJ 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31, 2016 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2016 Transfers Fees Expenses Deprec. 12/31/2016 Total Equity 26,944,044 13,130 - 13,130 -917 158,688 763,452 27,865,267 Total Domestic Equity 21,225,417 - - - 138,997 734,747 22,099,161 Vanguard Total Stock Market (VITSX) 21,225,417 - - - 138,997 734,747 22,099,161 Total International Equity 5,718,627 13,130 - 13,130 -917 19,692 28,706 5,766,106 RBC Global (Voyageur) 5,718,627 13,130 - 13,130 -917 19,692 28,706 5,766,106 Total Fixed Income 9,608,964 163,939 -3,422 -152 62,648 - 80,163 9,751,814 Total Domestic Fixed Income 7,069,677 1,350,000 -3,422 -152 55,223 - 169,764 8,301,561 Galliard Core Fixed Income 4,736,754 - -3,422 - - - 100,406 4,632,926 Galliard TIPS 1,232,715 - -152 1,495 - 23,937 1,210,121 Vanguard Short Term Bond Index (VSCSX) 1,100,208 - - 7,916 - 16,135 1,091,989 Vanguard Inflation- Protected Secs (VAIPX) - 1,350,000 45,812 - 29,286 1,366,526 Total Global Fixed Income 1,144,225 - 1,241,252 7,426 89,602 - Templeton Global Bond Fund (FBNRX) 1,144,225 - 1,241,252 7,426 89,602 - Total Other Fixed Income 1,395,062 55,191 - - 1,450,253 Crescent Direct Lending Fund 1,395,062 55,191 - - - 1,450,253 Total Real Estate 4,708,831 - 23,959 - 34,540 56,037 122,482 4,828,851 American Core Realty Fund 1,994,730 - 23,959 -5,485 29,562 -5,947 1,988,901 Intercontinental 2,714,101 - - - - 29,055 - 26,475 128,429 2,839,950 Receipt & Disbursement 431,060 - 153,110 984,897 - 656,599 - - 22,167 478 - 584,559 Total Fund Portfolio 41,692,898 - 984,897 - 656,599 - 51,092 - 23,236 277,851 805,772 43,030,492 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2016 To December 31, 2016 Financial Reconciliation Fiscal Year to Date 431,060 - 153,110 984,897 - 656,599 - - 22,167 478 - 584,559 Total Fund Portfolio 41,692,898 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2016 Transfers Fees Expenses Deprec. 12/31/2016 Total Equity 26,944,044 13,130 - 13,130 -917 158,688 763,452 27,865,267 Total Domestic Equity 21,225,417 - - - 138,997 734,747 22,099,161 Vanguard Total Stock Market (VITSX) 21,225,417 - - - 138,997 734,747 22,099,161 Total International Equity 5,718,627 13,130 - 13,130 -917 19,692 28,706 5,766,106 RBC Global (Voyageur) 5,718,627 13,130 - 13,130 -917 19,692 28,706 5,766,106 Total Fixed Income 9,608,964 163,939 -3,422 -152 62,648 - 80,163 9,751,814 Total Domestic Fixed Income 7,069,677 1,350,000 -3,422 -152 55,223 - 169,764 8,301,561 Galliard Core Fixed Income 4,736,754 - -3,422 - - - 100,406 4,632,926 Galliard TIPS 1,232,715 - -152 1,495 - 23,937 1,210,121 Vanguard Short Term Bond Index (VSCSX) 1,100,208 - - 7,916 - 16,135 1,091,989 Vanguard Inflation- Protected Secs (VAIPX) - 1,350,000 45,812 - 29,286 1,366,526 Total Global Fixed Income 1,144,225 - 1,241,252 7,426 89,602 - Templeton Global Bond Fund (FBNRX) 1,144,225 - 1,241,252 7,426 89,602 - Total Other Fixed Income 1,395,062 55,191 - - 1,450,253 Crescent Direct Lending Fund 1,395,062 55,191 - - - 1,450,253 Total Real Estate 4,708,831 - 23,959 - 34,540 56,037 122,482 4,828,851 American Core Realty Fund 1,994,730 - 23,959 -5,485 29,562 -5,947 1,988,901 Intercontinental 2,714,101 - - 29,055 26,475 128,429 2,839,950 Receipt & Disbursement 431,060 - 153,110 984,897 - 656,599 - - 22,167 478 - 584,559 Total Fund Portfolio 41,692,898 - 984,897 - 656,599 - 51,092 - 23,236 277,851 805,772 43,030,492 17 3 Comparative Performance Trailling Returns Total Fund (Net) Total Fund Policy Total Fund (New Mgrs) (Net) Total Fund Policy Total Fund (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Fund (New Mgrs) (Gross) Total Fund Policy All Public Plans -Total Fund Median 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 (VVV) IM U.S. Open End Private Real Estate (SA +CF) Median Comparative Performance Trailing Returns Total Fund As of December 31, 2016 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date 2.46 2.46 9.49 5.96 10.65 5.55 11/01/2000 1.69 1.69 8.12 5.90 10.09 5.23 2.46 2.46 9.49 5.96 10.65 5.29 10/01/2007 1.69 1.69 8.12 5.90 10.09 5.97 2.58 (3) 2.58 (3) 9.84 (5) 6.30 (3) 11.11 (1) 6.19 (12) 11/01/2000 1.69 (13) 1.69 (13) 8.12 (31) 5.90 (8) 10.09 (6) 5.23 0.69 0.69 7.27 4.59 8.46 5.51 2.58 (3) 2.58 (3) 9.84 (5) 6.30 (3) 11.11 (1) 5.84 (8) 10/01/2007 1.69 (13) 1.69 (13) 8.12 (31) 5.90 (8) 10.09 (6) 5.97 (6) 0.69 0.69 7.27 4.59 8.46 4.95 3.42 3.42 6.72 13.97 1 6.19 01/01/2001 3.10 3.10 10.12 6.21 12.92 4.89 4.12 (43) 4.12 (43) 12.89 (21) 8.39 (52) 14.37 (55) 6.25 (35) 11/01/2000 4.21 (41) 4.21 (41) 12.74 (23) 8.43 (51) 14.67 (46) 4.89 (87) 3.84 3.84 10.51 8.45 14.56 5.72 0.85 (35) 0.85 (35) 6.81 (21) 1.70 (13) 13.03 (3) 5.88 (63) 11/01/2000 -0.68 (58) -0.68 (58) 1.51 (72) -1.15 (58) 7.02 (51) 3.77 (98) -0.29 -0.29 3.44 -0.64 7.07 6.07 -0.18 GEW -0.18 WEEMP".68 2.89 5.02 , 11/01/2000 -2.05 -2.05 - 2.43 1.95 4.77 -1.64 (98) -1.64 (98) 2.88 (97) 2.59 (98) 2.16 (100) 4.82 (92) 11/01/2000 -2.05 (98) -2.05 (98) 1.97 (99) 2.43 (98) 1.95 (100) 4.77 (93) 3.84 3.84 10.51 8.45 14.56 5.72 11.01 (1) 11.01 (1) 9.40 (4) 2.28 (28) 4.94 (1) 4.87 (5) 12/01/2011 -8.53 (98) -8.53 (98) 1.60 (79) -0.84 (83) -0.99 (90) -0.81 (89) -3.95 -3.95 3.35 0.43 1.44 1.56 3.81 (10) 3.81 (10) 10.59 (37) 12.84 (49) 13.66 (45) 5.62 (16) 10/01/2007 2.07 (69) 2.07 (69) 8.72 (75) 12.05 (70) 12.20 (75) 4.85 2.30 2.30 9.47 12.77 13.01 4.75 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 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. 18 Comparative Performance Trailing Returns Total Fund As of December 31, 2016 QTR FYTD 1 YR 3 YR 6 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 4.12 (41) 4.12 (41) 12.67 (26) 8.39 (11) N/A 12.88 (17) 03/01/2013 Vanguard Total Stock Market Index Hybrid 4.11 (42) 4.11 (42) 12.68 (26) 8.40 (11) 14.65 (17) 12.90 (16) IM U.S. Multi -Cap Core Equity (MF) Median 3.56 3.56 9.75 6.47 13.41 11.61 RBC Global (Voyageur) 0.85 (35) 0.85 (35) 6.81 (21) 1.70 (13) 13.03 (3) 2.81 (15) 11/01/2007 MSCI EAFE Index -0.68 (58) -0.68 (58) 1.51 (72) -1.15 (58) 7.02 (51) -0.48 (81) IM International Large Cap Value Equity (SA +CF) Median -0.29 -0.29 3.44 -0.64 7.07 0.46 Galliard Core Fixed Income -2.12 (89) -2.12 (89) 2.45 (47) 2.79 (27) 2.47 (44) 3.99 (69) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index -2.05 (79) -2.05 (79) 1.97 (77) 2.43 (54) 1.95 (79) 3.89 IM U.S. Intermediate Duration (SA +CF) Median -1.84 -1.84 2.39 2.46 2.30 4.20 Galliard TIPS -1.82 (31) -1.82 (31) 3.76 (91) 1.51 (83) 0.74 (81) 3.29 (98) 10/01/2007 Blmbg. Barc. U.S. TIPS 1 -10 Year -1.47 (15) -1.47 (15) 4.01 (89) 1.45 (91) 0.70 (88) 3.38 (95) IM U.S. TIPS (SA +CF) Median -2.38 -2.38 4.67 2.26 0.93 4.10 Vanguard Short Term Bond Index (VSCSX) -0.75 (32) -0.75 (32) 2.81 (30) N/A N/A 2.02 (15) 01/01/2015 Blmbg. Barc. U.S. Corporate 1 -5 Year Index -0.81 (35) -0.81 (35) 2.87 (29) 2.06 (14) 2.76 (18) 2.05 (15) IM U.S. Intermediate Investment Grade (MF) Median -1.01 -1.01 2.19 1.50 1.76 1.31 American Core Realty Fund 1.20 (94) 1.20 (94) 7.10 (100) 11.31 (80) 11.51 (80) 4.45 (71) 10/01/2007 American Core Realty Policy 2.16 (67) 2.16 (67) 9.27 (53) 12.21 (69) 12.20 (75) 7.04 (1) IM U.S. Open End Private Real Estate (SA +CF) Median 2.30 2.30 9.47 12.77 13.01 4.75 Intercontinental 5.71 (1) 5.71 (1) 13.16 (21) 13.92 (37) 14.87 (26) 15.15 (33) 10/01/2010 NCREIF Fund Index -ODCE 2.07 (69) 2.07 (69) 8.72 (75) 12.05 (70) 12.20 (75) 13.16 (75) IM U.S. Open End Private Real Estate (SA +CF) Median 2.30 2.30 9.47 12.77 13.01 14.01 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 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 Comparative Performance - IRR Crescent Direct Lending Fund QTR 0.00 20 1 YR 8.41 Comparative Performance - IRR Inception 6.34 As of December 31, 2016 Inception Date 10/14/2014 Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2016 Comparative Performance Fiscal Year Returns FYTD Oct -2014 To Sep -2016 Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Oct -2008 To Sep -2009 Oct -2007 To Sep -2008 Oct -2006 To Sep -2007 Total Fund (Net) 2.46 (3) 0.33 (27) 11.86 (13) 16.72 (6) 18.96 (27) -1.17 (81) 10.67 (31) 0.70 (66) -16.84 (92) 13.03 (72) Total Fund Policy 1.69 (13) 0.55 (24) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 0.69 0.69 -0.53 -0.53 10.17 12.51 17.93 0.22 9.92 17.93 1.59 -12.96 14.09 Total Fund (New Mgrs) (Net) 2.46 (3) 0.33 (27) 11.85 (13) 15.72 (6) 18.95 (27) -1.17 (81) 10.66 (32) 0.68 (65) -16.82 (92) N/A Total Fund Policy 1.69 (13) 0.55 (24) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 0.69 0.55 -0.53 11.38 10.17 12.51 17.93 0.22 9.92 2.51 1.59 -12.96 14.09 Total Fund (Gross) 2.68 (3) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.46 (67) 11.40 (19) 1.43 (62) -16.48 (90) 13.92 (66) Total Fund Policy 1.69 (13) 0.55 (24) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 0.69 -0.53 10.17 12.51 17.93 0.22 9.92 1.59 -12.96 14.09 Total Fund (New Mgrs) (Gross) 2.58 (3) 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 Total Fund Policy 1.69 (13) 0.55 (24) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 0.69 -0.53 10.17 12.51 17.93 0.22 9.92 1.59 -12.96 14.09 Total Equity -1.62 W 16.4alW 23.09 �27.08�68 18.62 Total Equity Policy 3.10 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 4.12 (43) -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) Total Domestic Equity Policy 4.21 (41) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (30) -6.91 (64) -21.98 (68) 16.44 (60) IM U.S. Large Cap Core Equity (SA +CF) Median 3.84 -0.02 19.25 20.61 29.73 1.15 9.47 -5.77 -20.45 16.97 Total International Equity 0.85 (35) -4.36 (19) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) MSCI EAFE Index -0.68 (58) -8.27 (44) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (66) 3.80 (65) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median -0.29 -9.10 5.74 22.93 15.36 -8.61 5.01 6.25 -27.35 23.87 Total Fixed Income -0.18 1.40 3 6.340 M 4.67 9.27 ' 10.63 4.96 Total Fixed Policy -2.05 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income -1.64 (98) 2.31 (25) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (54) 10.53 (2) 0.64 (1) 4.96 (100) Total Domestic Fixed Policy -2.05 (98) 2.95 (19) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (14) 7.52 (78) 9.69 (2) 4.16 (1) 5.33 (99) IM U.S. Large Cap Core Equity (SA +CF) Median 3.84 -0.02 19.25 20.61 29.73 1.15 9.47 -5.77 -20.45 16.97 Total Global Fixed Income 11.01 (1) -7.63 (91) 6.31 (12) 3.53 (3) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -8.53 (98) -3.83 (54) -0.07 (97) -4.60 (83) N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -3.95 -3.70 3.53 -1.52 7.19 1.71 7.82 13.91 -1.47 7.71 Total Real Estate 3.81 (10) 14.27 (66) 13.47 (39) 16.42 (20) 12.81 (64) 16.82 (77) 2.71 (77) -32.42 (36) 4.72 (38) N/A NCREIF Fund Index -ODCE 2.07 (69) 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 2.30 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. 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. Intercontinental Returns are preliminary Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 21 Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA +CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Bloomberg Barclays Intermed Aggregate Index IM U.S. Intermediate Duration (SA +CF) Median Galliard TIPS Blmbg. Barc. U.S. TIPS 1 -10 Year Vanguard Short Term Bond Index (VSCSX) Blmbg. Barc. U.S. Corporate 1 -5 Year Index IM U.S. Intermediate Investment Grade (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA +CF) Median Intercontinental NCREIF Fund Index -ODCE IM U.S. Open End Private Real Estate (SA +CF) Median Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2016 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 FYTD To To To To To To To To To Sep -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 N/A 1.01 (38) 0.18 0.85 (35) -0.68 (58) -0.29 4.12 (41) 4.11 (42) 3.56 -2.12 (89) -2.05 (79) -1.84 N/A N/A 3.17 (56) 19.15 (39) 3.62 18.13 -4.36 (19) 10.08 (8) -8.27 (44) 4.70 (64) -9.10 5.74 -0.59 (35) 17.77 (30) -0.55 (34) 17.77 (30) -1.61 12.08 16.24 -1.68 (95) 3.04 (25) 3.15 (37) 2.95 (30) 2.74 (57) 2.70 (13) 2.87 (28) -1.82 -0.38 -1.47 -0.82 N/A (76) 33.21 (8) 19.27 (65) 29.19 (38) 20.27 12.08 27.63 -1.68 (95) 27.54 (17) 24.74 (3) 24.29 (41) 14.33 (54) 22.93 (13) 15.36 (28) N/A N/A 21.60 (59) 30.28 (16) 22.79 26.40 -0.64 (74) 5.82 (44) -0.71 (77) 4.31 (83) -0.27 5.56 -1.17 (76) 11.93 (44) 3.78 (30) 12.65 (36) 1.38 12.08 11.30 -1.68 (95) -8.75 (53) 11.69 (15) -8.94 (55) 3.71 (66) -8.61 (13) 5.01 (28) N/A (32) N/A -6.03 0.71 (23) 11.16 (30) -1.74 12.08 9.59 -1.68 (95) 4.16 (27) 9.63 (17) 4.22 (23) 7.52 (77) 3.60 (13) 8.25 (28) 0.59 -3.71 6.01 6.73 7.28 0.61 -3.90 6.32 7.19 7.40 0.53 (23) -15.13 (16) -1.85 (37) -20.88 (54) -3.01 -20.28 11.87 (20) N/A 3.80 (65) -30.13 (72) 6.25 -27.35 N/A (32) N/A -6.03 (56) -21.19 (31) -5.44 -22.80 12.08 (38) -1.68 (95) 9.69 (81) 4.16 (36) 11.50 N/A 3.26 N/A 19.35 (57) 20.19 N/A 25.38 (39) 23.87 N/A 16.98 (45) 16.55 N/A 5.33 (69) 5.49 3.97 7.72 N/A 4.02 7.89 5.32 -0.75 (32) N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.81 (35) 1.98 (13) 2.46 (28) 1.47 (15) 6.29 (29) 1.83 (59) 8.25 (38) 16.02 (2) -2.84 (73) 5.04 (14) -1.01 1.22 1.70 -0.56 4.97 2.00 7.53 10.48 -0.19 4.28 1.20 (94) 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (74) 2.71 (77) -32.42 (35) 4.72 (38) N/A 2.16 (67) 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 2.30 15.93 12.90 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 5.71 (1) 13.96 (68) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A 2.07 (69) 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) 2.30 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. 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. Intercontinental Returns are preliminary Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 14.00 (7) 0.63 12.00 (8) 16.33 (4) 19.81 10.00 (67) O 8.00 0.55 O 6.00 • O E Median 9.67 O K 10.17 12.51 4.00 ■ 0.58 (12) 4.00 1.73 (63) 0.98 (53) 2.00 -4.63 (35) • 0.00 • • 0.00 -5.04 ■ -2.00 -4.00 0 • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 2.58 (3) 2.58 (3) 9.84 (5) 5.94 (1) 6.30 (3) 10.20 (2) 11.11 (1) • Total Fund Policy 1.69 (13) 1.69 (13) 8.12 (31) 4.99 (7) 5.90 (8) 9.33 (5) 10.09 (6) Median 0.69 0.69 7.27 3.64 4.59 7.54 8.46 Comparative Performance 28.00 (7) 0.63 24.00 (8) 16.33 (4) 19.81 20.00 (67) • Total Fund Policy 10.64 16.00 0.55 (24) 11.38 12.00 • (18) 2.51 (10) Median 9.67 Jun -2015 K 10.17 12.51 8.00 ■ 0.58 (12) 4.00 1.73 (63) 0.98 (53) 4.06 (6) -4.63 (35) • 0.00 1.91 1.04 2.88 -5.04 ■ -4.00 -8.00 Performance Review Total Fund Portfolio As of December 31. 2016 i� W 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 11.51 (7) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (67) • Total Fund Policy 10.64 (19) 0.55 (24) 11.38 (22) 15.00 (13) 19.61 (18) 2.51 (10) Median 9.67 Jun -2015 -0.53 10.17 12.51 17.93 0.22 0.58 (12) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Total Fund Portfolio 4.39 (9) 1.16 (92) 1.40 (29) 4.15 (5) -4.68 (38) 0.58 (12) Total Fund Policy 3.50 (48) 1.73 (63) 0.98 (53) 4.06 (6) -4.63 (35) 0.40 (19) All Public Plans -Total Fund Median 3.43 1.91 1.04 2.88 -5.04 -0.11 23 1:1� 3 Yr Rolling Under /Over Performance - 5 Years 20.0 e Over 0 - Performance 0 15.0 0 EL 10.0 v c LL 5.0 A 0 0.0 0.0 5.0 10.0 Total Fund Policy (% ) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 6.72 is 6.16 O 5.60 «' 5.04 - w K 4.48 15.0 E9 Performance Review Total Fund Portfolio As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y0.0 e8800088888eee88 w 25.0 O Qo 8 8 c v � 50.0 - `w EL 75.0 Under w Performance 100.0 20.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1 1 1 1 4.52 4.56 4.60 4.64 4.68 4.72 4.76 4.80 Risk (Standard Deviation %) Return Standard Deviation lb Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 12.18 11.31 10.44 O v 9.57 K 8.70 7.83 I 1 5.6 5.8 6.0 6.2 6.4 6.6 6.8 7.0 Risk (Standard Deviation %) Return Standard Deviation 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) l�J • Total Fund Portfolio 6.30 4.73 • Total Fund Portfolio 11.11 6.85 O Total Fund Policy 5.90 4.54 O Total Fund Policy 10.09 5.97 Median 4.59 4.74 Median 8.46 6.03 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.96 107.04 108.46 0.27 0.41 1.30 1.02 2.76 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 2.70 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.41 112.11 125.59 -0.29 0.71 1.58 1.13 2.60 Total Fund Policy 0.00 100.00 100.00 1.00 2.26 24 uz� Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 23.00 44.00 20.00 36.00 17.00 28.00 14.00 00 20.00 11.00 r 8.00 r 12.00 v v 5.00 4.00 2.00 -4.00 -1.00 -4.00 7.00 1 1 Comparative Performance -12.00 Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2016 9 J -20.00 1 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 • VG Total Stock Mkt (VITSX) 15.00 (12) -0.59 (35) 17.77 (30) N/A N/A N/A • VG Total Stock Mkt Hybrid 14.99 (12) -0.55 (34) 17.77 (30) ?1.60 (59) 30.28 (16) 0.71 (23) Median 11.36 -1.61 16.24 ?2.79 ?6.40 -1.74 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 4.12 (41) 4.12 (41) 12.67 (26) 6.37 (14) 8.39 (11) N/A N/A • VG Total Stock Mkt Hybrid 4.11 (42) 4.11 (42) 12.68 (26) 6.36 (14) 8.40 (11) 14.21 (16) 14.65 (17) Median 3.56 3.56 9.75 4.16 6.47 13.01 13.41 Comparative Performance -12.00 Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2016 9 J -20.00 1 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 • VG Total Stock Mkt (VITSX) 15.00 (12) -0.59 (35) 17.77 (30) N/A N/A N/A • VG Total Stock Mkt Hybrid 14.99 (12) -0.55 (34) 17.77 (30) ?1.60 (59) 30.28 (16) 0.71 (23) Median 11.36 -1.61 16.24 ?2.79 ?6.40 -1.74 25 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 VG Total Stock Mkt (VITSX) 4.42 (53) 2.67 (21) 0.95 (38) 6.26 (15) -7.26 (37) 0.09 (41) VG Total Stock Mkt Hybrid 4.41 (54) 2.69 (20) 0.95 (38) 6.25 (16) -7.26 (36) 0.08 (41) IM U.S. Multi -Cap Core Equity (MF) Median 4.48 1.38 0.36 4.87 -8.02 -0.10 25 3 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over X Performance F 11.0 x 10.0 Y U 0 9.0 rn A 0 8.0 C7 7.0 7.0 8.0 9.0 10.0 VG Total Stock Mkt Hybrid ( %) • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 8.82 (� 8.19 7.56 «' 6.93 v M Under Performance I 11.0 12.0 6.30 5.67 I I 1 10.78 10.85 10.92 10.99 11.06 11.13 11.20 11.27 Risk (Standard Deviation %) Return Standard Deviation Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 8.39 10.87 • VG Total Stock Mkt (VITSX) W O O O O O VG Total Stock Mkt Hybrid O O O 10.86 25.0 O 14.65 O ® 10.55 - 6.47 O 00 Median � `w 50.0 - 11.08 Historical Statistics - 3 Years O a 75.0 v K Tracking Up Down Information Sharpe 100.0111111111 Downside Error Market Market Alpha 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Capture 5 -25 25- Median Median -75 75 -95 Total Period VG Total Stock Mkt (VITSX) 0.03 99.98 100.02 -0.01 -0.18 Count Count Count Count lb VG Total Stock Mkt (VITSX) 4 • VG Total Stock Mkt Hybrid 20 Peer Group Scatterg ram - 5 Years 15.17 14.76 O 14.35 «' 13.94 v 13.53 13.12 10.40 10.60 3 (75 %) 1 (25 %) 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) 0 (0 %) 0 (0 %) 10.80 Risk (Standard Deviation %) Return 11.00 Standard Deviation 11.20 • VG Total Stock Mkt (VITSX) 8.39 10.87 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 8.40 10.86 O VG Total Stock Mkt Hybrid 14.65 10.55 Median 6.47 11.16 Median 13.41 11.08 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) 0.03 99.98 100.02 -0.01 -0.18 0.79 1.00 6.20 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 0.79 1.00 6.19 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 1.35 1.00 5.77 o uz� Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 17.00 44.00 14.00 I 36.00 • 11.00 -1 1 28.00 • 8.00 20.00 Q 5.00 12.00 0 • E v v 2.00 0 4.00 0 -1.00 � -4.00 � • -4.00 -12.00 ■ -7.00 4 -20.00 -10.00 I Comparative Performance Performance Review RBC Global (Voyageur) As of December 31. 2016 0 0 0 0 • -28.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global (Voyageur) 0.85 (35) 0.85 (35) 6.81 (21) 4.07 (11) 1.70 (13) 8.82 (7) 13.03 (3) • MSCI EAFE Index -0.68 (58) -0.68 (58) 1.51 (72) 0.56 (55) -1.15 (58) 4.46 (57) 7.02 (51) Median -0.29 -0.29 3.44 1.04 -0.64 4.82 7.07 Comparative Performance Performance Review RBC Global (Voyageur) As of December 31. 2016 0 0 0 0 • -28.00 1 Qtr 1 Qtr J 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 • RBC Global (Voyageur) 10.74 (27) -4.36 (19) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (53) • MSCI EAFE Index 7.06 (60) -8.27 (44) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) Median 8.34 -9.10 5.74 22.93 15.36 -8.61 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 RBC Global (Voyageur) 12.90 (3) -5.53 (98) -0.69 (37) 4.56 (35) -10.23 (45) 1.78 (43) MSCI EAFE Index 6.50 (59) -1.19 (45) -2.88 (76) 4.75 (28) -10.19 (43) 0.84 (67) IM International Large Cap Value Equity (SA +CF) Median 7.04 -1.40 -1.68 3.85 -10.77 1.35 27 3 3 Yr Rolling Under /Over Performance - 5 Years 40.0 Over Performance 30.0 v rn 0 20.0 co O Ocbo � n 10.0 0 XO U 0.0 m K -10.0 -10.0 0.0 10.0 20.0 MSCI EAFE Index ( %) eOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.94 1.96 0.98 «' 0.00 v Performance Review RBC Global (Voyageur) As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years 1.70 12.20 O RBC Global (Voyageur) 13.03 y 0.0 O p -1.15 0 0 0 0 0 0 0 0 0 0 0 0 11.45 K -0.64 9.92 p 0 7.07 11.64 0 O p w 25.0 Tracking Up Down O Information Sharpe Downside 00 Market OO 0 00 0 Ratio Ratio Beta 50.0 Capture p p p O O a 110.07 p p 3.01 00 0.18 0.99 8.76 MSCI EAFE Index 0.00 p 0 - p 1.00 8.51 Historical Statistics - 5 Years 75.0 Tracking Up Down Information Sharpe K Downside Error Market Market Alpha Ratio Ratio Beta Risk 100.0 Capture Under Performance 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 30.0 40.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 101 -0.98 O -1.96 8.70 9.28 9.86 10.44 11.02 11.60 12.18 12.76 Risk (Standard Deviation %) Return Standard Deviation O RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 16.00 14.00 12.00 «' 10.00 v K 8.00 6.00 11.90 12.60 13.30 Risk (Standard Deviation %) Return 11.20 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 0 14.00 14.70 15.40 Standard Deviation O RBC Global (Voyageur) 1.70 12.20 O RBC Global (Voyageur) 13.03 14.44 O MSCI EAFE Index -1.15 9.49 O MSCI EAFE Index 7.02 11.45 Median -0.64 9.92 Median 7.07 11.64 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.29 110.07 92.85 3.01 0.56 0.18 0.99 8.76 MSCI EAFE Index 0.00 100.00 - 1.00 8.51 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.33 117.61 88.57 5.74 1.06 0.91 1.01 8.75 MSCI EAFE Index 100.00 100.00 1 1.00 8.60 28 uz� Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 8.00 12.00 6.00 10.00 8.00 4.00 6.00 • O 2.00 Q O 4.00 p-d no 2.00 0.00 -2.00 ` • O -4.00 I Comparative Performance 0.00 -2.00 Performance Review Galliard Core Fixed Inc As of December 31. 2016 r -4.00 J 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 • Galliard Core Fixed Inc 4.36 (26) 3.04 (25) 3.15 (37) -0.64 (74) 5.82 (44) 4.16 (27) • Barclays Int Agg Index 3.57 (72) 2.95 (30) 2.74 (57) -0.71 (77) 4.31 (83) 4.22 (23) Median 3.90 2.70 2.87 -0.27 5.56 3.60 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc -2.12 (89) -2.12 (89) 2.45 (47) 2.03 (37) 2.79 (27) 1.79 (40) 2.47 (44) • Barclays Int Agg Index -2.05 (79) -2.05 (79) 1.97 (77) 1.59 (81) 2.43 (54) 1.55 (67) 1.95 (79) Median -1.84 -1.84 2.39 1.86 2.46 1.67 2.30 Comparative Performance 0.00 -2.00 Performance Review Galliard Core Fixed Inc As of December 31. 2016 r -4.00 J 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 • Galliard Core Fixed Inc 4.36 (26) 3.04 (25) 3.15 (37) -0.64 (74) 5.82 (44) 4.16 (27) • Barclays Int Agg Index 3.57 (72) 2.95 (30) 2.74 (57) -0.71 (77) 4.31 (83) 4.22 (23) Median 3.90 2.70 2.87 -0.27 5.56 3.60 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Galliard Core Fixed Inc 0.30 (60) 1.77 (34) 2.54 (23) -0.29 (27) 1.04 (35) -0.64 (58) Barclays Int Agg Index 0.31 (58) 1.44 (72) 2.31 (54) -0.51 (64) 1.08 (30) -0.67 (62) IM U.S. Intermediate Duration (SA +CF) Median 0.38 1.58 2.33 -0.42 0.92 -0.61 ORA 3 3 Yr Rolling Under /Over Performance - 5 Years 10.0 e Over Performance U E 7.5 'O N �♦ X LL e w 5.0 0 U m 2.5 A C7 0.0 1 0.0 2.5 5.0 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 3.00 is 2.80 2.60 v 2.40 2.20 2.31 2.34 2.37 2.40 Risk (Standard Deviation %) Return Performance Review Galliard Core Fixed Inc As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years 2.79 2.46 y 0.0 2.38 • Barclays Int Agg Index 2.43 w 25.0 • • Barclays Int Agg Index 1.95 Q 00 O c 2.46 Q Q O Q Q Q 2.30 2.27 Q Q Q Q Q Q Q 00 50.0 - Q Q Q EL 75.0 - Q Q O Q Q Q Q Q Downside K Market 1& Alpha Ratio Ratio Under 100.0 Capture Capture Performance 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 1 0.24 1.07 1.19 1.05 1.21 7.5 10.0 100.00 5 -25 25- Median Median -75 75 -95 1.00 Total Period Count Count Count Count E 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 2.60 2.40 2.20 v Y 5 (25 %) 15 (75 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 11 (55 %) 7 (35 %) O 2.00 1.80 1 1 2.43 2.46 2.49 2.10 2.15 2.20 2.25 2.30 2.35 2.40 2.45 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Galliard Core Fixed Inc 2.79 2.46 • Galliard Core Fixed Inc 2.47 2.38 • Barclays Int Agg Index 2.43 2.34 • Barclays Int Agg Index 1.95 2.18 Median 2.46 2.31 Median 2.30 2.27 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.34 107.83 97.85 0.24 1.07 1.19 1.05 1.21 Barclays Int Agg Index 0.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.38 112.64 98.65 0.40 1.35 1.07 1.05 1.29 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 W Peer Group Analysis - IM U.S. TIPS (SA +CF) 8.00 6.00 4.00 2.00 r K 0.00 -2.00 -4.00 M 17.00 14.00 11.00 8.00 5.00 ■r 2.00 K -1.00 -4.00 -7.00 Performance Review Galliard TIPS As of December 31. 2016 5 -6.00 -10.00 -13.00 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 • Galliard TIPS -1.82 (31) -1.82 (31) 3.76 (91) 1.83 (21) 1.51 (83) -0.34 (36) 0.74 (81) O Galliard TIPS 4.75 (95) -0.38 (20) 0.59 (85) -3.71 (10) 6.01 (98) 6.73 (96) • Barclays US TIPS 1 -10 Yr -1.47 (15) -1.47 (15) 4.01 (89) 1.72 (45) 1.45 (91) -0.36 (38) 0.70 (88) O Barclays US TIPS 1 -10 Yr 4.83 (94) -0.82 (56) 0.61 (80) -3.90 (18) 6.32 (91) 7.19 (84) Median -2.38 -2.38 4.67 1.67 2.26 -0.49 0.93 Median 6.53 -0.79 1.56 -5.62 9.02 9.54 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Galliard TIPS 0.63 (84) 1.33 (82) 3.64 (69) -0.88 (98) -0.60 (7) -0.44 (28) Barclays US TIPS 1 -10 Yr 0.57 (96) 1.32 (84) 3.60 (75) -0.70 (80) -0.86 (25) -0.15 (18) IM U.S. TIPS (SA +CF) Median 0.99 1.70 4.32 -0.65 -1.12 -1.06 ca uz� 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over -- Performance 8.0 a_ ~ 4.0 v A 70 0.0 Under Performance -4.0 1 1 -4.0 0.0 4.0 8.0 12.0 Barclays US TIPS 1 -10 Yr ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.43 2.16 1.89 «' 1.62 • 1.35 p 1.08 1 1 1 1 3.06 3.23 3.40 3.57 3.74 3.91 4.08 4.25 4.42 Risk (Standard Deviation %) Return Standard Deviation Performance Review Galliard TIPS As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 3.50 • Galliard TIPS 0.74 3.97 O Barclays US TIPS 1 -10 Yr 1.45 3.31 °8 0.70 w c 25.0 Median 2.26 4.19 ° ° ° Median v 50.0 -� 4.92 Historical Statistics - 3 Years EL 75.0 ° ° ° ° °° ° Information Sharpe 8 8 Downside 8 0 Error Market Market e e e 8 8 e e 0® Risk Capture 100.0 �r Galliard TIPS 0.93 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Barclays US TIPS 1 -10 Yr 100.00 100.00 5 -25 25- Median Median -75 75 -95 1.00 Total Period Count Count Count Count 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 0.96 is 0.88 0.80 0.72 O O 0.64 1 3.57 3.78 3.99 2 (10 %) 2 (10 %) 3 (15 %) 13 (65 %) 1 (5 %) 1 (5 %) 2 (10 %) 16 (80 %) 1 1 1 4.20 4.41 4.62 4.83 5.04 Risk (Standard Deviation %) Return Standard Deviation 5.25 • Galliard TIPS 1.51 3.50 • Galliard TIPS 0.74 3.97 O Barclays US TIPS 1 -10 Yr 1.45 3.31 • Barclays US TIPS 1 -10 Yr 0.70 3.85 Median 2.26 4.19 Median 0.93 4.92 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.93 99.34 97.25 -0.02 0.07 0.41 1.05 1.94 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.84 98.82 97.48 0.03 0.06 0.20 1.02 2.48 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 32 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 8.00 12.00 6.00 10.00 8.00 Performance Review VG ST Bond Index (VSCSX) As of December 31. 2016 4.00 I 6.00 � O 00 4.00 r 2.00 r K K ■ 2.00 0.00 0.00 -2.00 ■ -2.00 -4.00 -4.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) -0.75 (32) -0.75 (32) 2.81 (30) 2.02 (15) N/A N/A N/A • Barclays US Corp 1 -5 Yr Index -0.81 (35) -0.81 (35) 2.87 (29) 2.05 (15) 2.06 (14) 1.92 (8) 2.76 (18) Median -1.01 -1.01 2.19 1.31 1.50 0.98 1.76 Comparative Performance -6.00 L- J 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 • VG ST Bond Index (VSCSX) 3.40 (25) N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 3.33 (28) 1.98 (13) 2.46 (28) 1.47 (15) 6.29 (29) 1.83 (59) Median 2.75 1.22 1.70 -0.56 4.97 2.00 33 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 VG ST Bond Index (VSCSX) 0.48 (43) 1.32 (43) 1.75 (35) -0.18 (6) 0.59 (29) -0.22 (33) Barclays US Corp 1 -5 Yr Index 0.52 (37) 1.39 (32) 1.76 (35) -0.37 (23) 0.58 (30) -0.21 (32) IM U.S. Intermediate Investment Grade (MF) Median 0.43 1.26 1.61 -0.56 0.28 -0.40 33 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 32.00 20.00 I 29.00 26.00 17.00 23.00 14.00 01 20.00 11.00 O E E > > � 0 17.00 '04 P 8.00 14.00 5.00 11.00 2.00 0 0 O 8.00 -1.00 5.00 -4.00 Comparative Performance Performance Review American Core RE As of December 31. 2016 2.00 J 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 • American Core RE 9.04 (97) 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (74) • American Core RE Policy 10.62 (69) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.14 15.93 12.90 13.22 12.90 16.62 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 1.20 (94) 1.20 (94) 7.10 (100) 11.15 (80) 11.31 (80) 11.57 (80) 11.51 (80) • American Core RE Policy 2.16 (67) 2.16 (67) 9.27 (53) 12.18 (57) 12.21 (69) 12.49 (74) 12.20 (75) Median 2.29 2.29 9.47 12.61 12.77 13.24 13.01 Comparative Performance Performance Review American Core RE As of December 31. 2016 2.00 J 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 • American Core RE 9.04 (97) 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (74) • American Core RE Policy 10.62 (69) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.14 15.93 12.90 13.22 12.90 16.62 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 American Core RE 1.83 (68) 1.26 (94) 2.63 (53) 3.03 (78) 3.33 (73) 3.75 (49) American Core RE Policy 2.18 (47) 2.18 (61) 2.44 (61) 3.43 (57) 3.63 (49) 3.92 (42) IM U.S. Open End Private Real Estate (SA +CF) Median 2.09 2.50 2.64 3.57 3.56 3.72 34 3 3 Yr Rolling Under /Over Performance - 5 Years 20.0 Over Performance w 15.0 K tj 10.0 U w 5.0 E a 0.0 0.0 5.0 10.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 13.23 12.74 12.25 O «' 11.76 v K 11.27 10.78 1 1.20 1.35 Performance Review American Core RE As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O w 25.0 v 50.0 - 75.0 °eog8 ®OeegOe8 °Oo 00 Under 100.0 Performance 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 1 15.0 20.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count O 1 I 1 1.50 1.65 1.80 1.95 2.10 Risk (Standard Deviation %) Return Standard Deviation 2.25 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 13.50 13.00 12.50 «' 12.00 O v K 11.50 11.00 0.80 1.00 0 (0 %) 0 (0 %) 7 (35 %) 13 (65 %) 1 (5 %) 1 (5 %) 15 (75 %) 3 (15 %) 1.20 1.40 Risk (Standard Deviation %) Return O 1.60 1.80 Standard Deviation • American Core RE 11.31 1.94 • American Core RE 11.51 1.57 O American Core RE Policy 12.21 1.21 • American Core RE Policy 12.20 1.07 Median 12.77 1.62 Median 13.01 1.66 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.27 92.99 N/A -3.60 -0.65 5.45 1.24 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 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 1.03 94.66 N/A -1.92 -0.60 6.86 1.11 0.00 American Core RE Policy 0.00 100.00 N/A 10.52 1.00 0.00 35 3 Performance Review Intercontinental As of December 31. 2016 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 20.00 32.00 29.00 26.00 17.00 23.00 14.00 O O O 20.00 11.00 411 E c 17.00 O 8.00 14.00 5.00 - 11.00 2.00 8.00 -1.00 5.00 -4.00 2.00 uz� Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 • Intercontinental 5.71 (1) 5.71 (1) 13.16 (21) 13.96 (36) 13.92 (37) 14.71 (32) 14.87 (26) • Intercontinental 13.30 (28) 13.96 (68) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) • NCREIF Fund Index 2.11 (68) 2.11 (68) 8.77 (74) 11.85 (71) 12.07 (70) 12.53 (74) 12.21 (75) • NCREIF Fund Index 10.08 (78) 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) Median 2.29 2.29 9.47 12.61 12.77 13.24 13.01 Median 11.14 15.93 12.90 13.22 12.90 16.62 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Jun -2015 Intercontinental 3.88 (4) 1.87 (78) 1.15 (97) 5.84 (4) 3.67 (49) 3.37 (64) NCREIF Fund Index 2.07 (53) 2.13 (64) 2.18 (65) 3.34 (63) 3.68 (48) 3.82 (45) IM U.S. Open End Private Real Estate (SA +CF) Median 2.09 2.50 2.64 3.57 3.56 3.72 uz� 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over Performance °-�- 16.0 oo v 0 tom-, 14.0 ' 0 0 c U c 12.0 10.0 10.0 12.0 14.0 NCREIF Fund Index ( %) 0 Over Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 14.52 13.86 13.20 Performance Review Intercontinental As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years 13.92 3.17 • Intercontinental y 0.0 2.99 O NCREIF Fund Index 12.07 1.25 O NCREIF Fund Index 12.21 A v 25.0 Median 12.77 00000000 Median 13.01 1.66 Historical Statistics - 3 Years 0000 0 00 00 Tracking 50.0 0 Information Sharpe Downside 0 Market Market 00 Ratio 0000000 Beta Risk 00 0 e 75.0 Intercontinental 3.20 0 00 N/A K 0.54 4.15 0.43 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A 100.0 1.00 0.00 Historical Statistics - 5 Years Under Tracking Up Down Information Sharpe Performance Downside 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 16.0 18.0 Capture Capture 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 9 «' 12.54 11.88 0 11.22 0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60 Risk (Standard Deviation %) Return Standard Deviation O Intercontinental 14 O NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 15.84 14.96 14.08 «' 13.20 K 12.32 O 11.44 0.40 0.80 1.20 1 (7 %) 12 (86 %) 1 (7 %) 0 (0 %) 0 (0 %) 3 (15 %) 16 (80 %) 1 (5 %) 1.60 2.00 2.40 Risk (Standard Deviation %) Return 2.80 3.20 Standard Deviation 3.60 • Intercontinental 13.92 3.17 • Intercontinental 14.87 2.99 O NCREIF Fund Index 12.07 1.25 O NCREIF Fund Index 12.21 1.15 Median 12.77 1.62 Median 13.01 1.66 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.20 114.96 N/A 8.59 0.54 4.15 0.43 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.04 121.00 N/A 10.16 0.81 4.70 0.37 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 37 uz� Private Equity Fund Overview Crescent Direct Lending Fund As of December 31, 2016 Fund Information $2,000,000 Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower- middle- market companies. The Fund will seek to Total Distributions: enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Capital Committed: $2,000,000 Capital Invested: $2,328,185 Management Fees: $692 Expenses: $80,965 Interest: - Total Contributions: $2,328,185 Remaining Capital Commitment: $552,934 Total Distributions: $1,006,037 Market Value: $1,450,253 Inception Date: 10/14/2014 Inception IRR: 6.3 TVPI: 1.1 Cash Flow Analysis $3,120,000.0 $2,496,000.0 $1,872,000.0 $1,248,000.0 $624,000.0 $0.0 ($624,000.0) 10/14 1/15 4/15 7/15 Net Asset Value Distribution 38 10/15 1/16 Contributions N 4/16 7/16 10/16 1/17 3 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 (EVE Vanguard Total Stock Market Policy Allocation Mandate Jun -200? MSCI US Broad Market Index Benchmark Historical Hybrid Compositions Total Fund As of December 31, 2016 Total Equity Policy ht ( %) Allocation Mandate Weight ( %) K7 Jan -1970 65.00 S &P 500 Index 90.00 30.00 MSCI EAFE Index 10.00 5.00 Oct -2003 S &P 500 Index 85.00 60.00 MSCI EAFE Index 15.00 30.00 10.00 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 ( %) 15.00 Jan -1926 5.00 S &P 500 Index 100.00 5.00 Oct -2009 Russell 3000 Index 100.00 50.00 20.00 15.00 Total Fixed Income Policy 5.00 Allocation Mandate Weight ( %) 10.00 Nov -2004 Bloomberg Barclays U.S. Aggregate Index 100.00 Sep -2006 Bloomberg Barclays Intermed Aggregate Index 100.00 sight ( %) American Realty Policy 100.00 Allocation Mandate Weight ( %) Oct -2007 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -Open End Diversified Core (EVE 100.00 K7 Compliance Checklist Total Fund Winter Springs GE As of December 31, 2016 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. — 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. 40 Vanguard Total RBC Global Gaillard Yes No NIA Yes No NIA Yes No NIA Yes American RE Intercontinental Yes No NIA Yes No NIA Yes ✓ ✓ Yes No NIA Yes No NIA TIPS VG Short BD No NIA No NIA Yes No NIA Winter Springs General Employees General Plan and Trust Fee Analysis As of December 31, 2016 Receipt & Disbursement 584,559 - Total Fund 0.35 43,030,492 152,388 41 3 Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 22,099,161 8,840 0.04 % of Assets Total Domestic Equity 0.04 22,099,161 8,840 RBC Global (Voyageur) 0.95 5,766,106 54,778 0.95 % of Assets Total International Equity 0.96 6,766,106 64,778 Galliard Core Fixed Income 0.25 4,632,926 11,582 0.25 % of Assets Galliard TIPS 0.15 1,210,121 1,815 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,091,989 1,310 0.12 % of Assets Total Domestic Fixed Income 0.19 8,301,661 16,074 Templeton Global Bond Fund (FBNRX) - - 0.51 % of Assets Total Global Fixed Income - - Crescent Direct Lending Fund 1.35 1,450,253 19,578 1.35 % of Assets Total Other Fixed Income 1.36 1,460,263 19,678 Intercontinental 1.10 2,839,950 31,239 1.10 % of Assets American Core Realty Fund 1.10 1,988,901 21,878 1.10 % of Assets Total Real Estate 1.10 4,828,861 63,117 Receipt & Disbursement 584,559 - Total Fund 0.35 43,030,492 152,388 41 3 Disclosures Total Fund As of December 31, 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. 42 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 higher factor is indicative of a riskier product. Excess Return Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. 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. 43 Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo 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. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo 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. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo 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 Bloomberg Barclays. Bloomberg 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, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 44 Putting clients first. 0 AndCo Consulting 1 (844) 44 -ANDCO I AndCo Consulting. com Formerly The Bogdahn Group