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Home My WebLink About2017 05 09 Regular 502 Quarterly Investment Return Report BOARD OF TRUSTEES AGENDA ITEM Informational Consent ITEM 502 Public Hearings Regular X May 9, 2017 Mgr. / Dept. Regular Meeting Authorization REQUEST: The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Second Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (46 Pages) Investment Performance Review Period Ending March 31, 2017 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44 -ANDCO I AndCoConsultingxom 1st Quarter 2017 Market Environment Returns for the 1St quarter of 2017 were positive across equity and fixed income indices. Broad domestic and international equity market performance was fueled by largely improving global economic data. While domestic equity indices trailed international equity indices due to U.S. Dollar (USD) weakness, performance was solid on the back of Trump administration campaign promises for pro- business policy initiatives, government regulation rollbacks, tax reform, and domestic infrastructure investment. Despite concerns over the duration of the equity market's current run, this policy optimism caused many major domestic indices to reach all -time highs at various points during the quarter. Large cap stocks reversed a recent trend of small cap equity outperformance during the quarter with the S &P 500 Index returning 6.1% versus a weaker 2.5% return for the Russell 2000 Index. Despite their relatively muted quarterly performance, small cap stocks still handedly outperformed large cap issues over the 1 -year period with the Russell 2000 returning 26.2% versus a 17.2% return for the S &P 500. International equity market benchmarks had an excellent start to calendar 2017, outpacing U.S. markets and posting substantial returns for the 1St quarter. Both developed and emerging market international equities experienced tailwinds from increasingly positive global macroeconomic data, a weakening USD and ongoing accommodative global central bank policies. Emerging market stocks were the greatest beneficiaries of these positive trends, outperforming their developed market counterparts by more than 5% for the quarter. The MSCI Emerging Market Index returned a solid 11.4% for the quarter and 17.2% for 1 -year period. While weaker by comparison, the developed market MSCI EAFE Index also posted robust performance returning 7.2% for the quarter and 11.7% over the 1 -year period. In March, the continued pickup in inflation measures coupled with other positive economic data pushed the Federal Open Market Committee (FOMC) to maintain its commitment to remove policy accommodation from the financial system. During the quarter, the FOMC increased the Fed Funds rate by 0.25% for the second time in six months. Since the increase was largely telegraphed by Fed Chair Janet Yellen, financial markets had already priced in a high likelihood of a rate hike, and thus, market's reaction to the news was subdued. Outside of an unforeseen pickup in economic growth or downside shock, markets are currently pricing in two additional rate increase for 2017. All investment grade bond benchmarks were modestly positive for the quarter. Corporate and Treasury Inflation Protected Securities (TIPS) benefitted the most from the current economic backdrop and outperformed other major bond sectors. The broad market Bloomberg Barclays U.S. Aggregate Index returned 0.8% for the quarter and 0.4% over the 1 -year period. MSCI ACWcUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill The Market Environment Major Market Index Performance As of March 31, 2017 Quarter Performance 7.9% 7.2 % 11.4% 6.1% 5.7% 6.0% 5.1 2.5% 0.8% 0.7% 1.3% 0.5% 1.2 °0 0.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 1 -Year Performance MSCI ACWcUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% C � Source: Investment Metrics 2 13 1% 11.7% 17.2% 17.2% 18.1% 17.4 o 17.0°/ 26.2% 0.4% 1.5% L0.3O.2 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% C � Source: Investment Metrics 2 ■ U.S. equity index returns were largely positive across the style and capitalization spectrum for the 1St quarter and the trailing 1 -year period. Domestic equity index returns were driven by optimism surrounding the Trump administration's previously referenced pro - growth agenda. Markets were also driven higher by positive trends in economic data reported throughout the period including improvements in consumer and business sentiment, corporate earnings, and employment. The only major setback to the 1St quarter's optimism was the GOP's failure to repeal the Affordable Care Act in late March. This event raised market concerns surrounding the expediency and impact of future promised policy changes. ■ Large cap stocks were the best performing capitalization segment for the quarter for both core and growth issues while mid cap equities posted a slight premium relative to other capitalizations within the value spectrum. The large - cap Russell 1000 Index returned a solid 6.0% for the quarter while the small cap Russell 2000 Index returned a more modest 2.5 %. This return spread was partially due to market speculation that potential foreign trade restrictions expected to disproportionately impact larger companies may not be fully realized. Conversely, over the 1 -year period, small cap issues still maintain a considerable performance advantage, with the small cap Russell 2000 returning 26.2% versus a return of 17.4% for the large cap Russell 1000. ■ Index sector allocations were a substantial contributor to growth index outperformance during the 1St quarter as growth indices benefitted from significant underweights to the energy and financials sectors, both of which lagged the broad index return. Growth benchmarks also benefitted from greater exposure to the information technology and health care sectors which posted strong sector returns. The Russell 2000 Value Index's return of -0.1% was the worst performing style index for the period as well as the only index to post a negative return. Like capitalization performance differentials, the 1St quarter's style performance trend reverses when viewed over the 1 -year period with value indices outperforming growth benchmarks across all market capitalization levels. ■ Domestic equity valuations appear stretched relative to historical levels based on Forward Price /Earnings ratios (P /E), with even the most reasonably valued indices trading above their historical P/E valuations. Index P/E valuations range from 112% and 127% of their respective 15 -year P/E averages. The mid cap growth and small cap value indices appear the most inexpensive and the large cap value and small cap growth look the most overvalued. Source: Investment Metrics 3 The Market Environment Domestic Equity Style Index Performance As of March 31, 2017 Quarter Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value -0.1% 2000 Index 2000 Growth ] 3.0% 3.7% 8.6% 3.3% 6.0% 8.9% 3.8% 5.1% 6.9% 2.5% 5.3% -2.0% 0.0% 2.0% 4.0% 6.0% 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 8.0% 10.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% ■ Sector performance within the Russell 1000 Index was largely positive for the 1St quarter. Six of eleven economic sectors outpaced the Russell 1000 Index return, and nine of eleven sectors posted gains during the period. Energy ( -6.6 %) was the worst performing sector as crude prices fell throughout the quarter on fears of oversupply as accelerating production in the U.S. undermined the effects of an agreement between OPEC and Russia to limit global supply. Telecommunication services was the only other large cap sector to post negative performance for the quarter with a return of -3.4 %. Technology was the best performing sector in the large cap index as increasing business and consumer confidence drove demand and pushed technology stock prices 12.2% higher through the quarter. Health care also outperformed, rising 8.6% for the quarter as uncertainty surrounding health care reform dissipated after the GOP's failure to repeal the Affordable Care Act, which indefinitely postponed changes to current legislation. Over the trailing 1 -year period, financials, technology and materials were the best performing sectors, each returning greater than 20 %. All eleven economic sectors of the Russell 1000 index posted positive returns for the 1 -year period. ■ Small cap sector results lagged their large capitalization counterparts for the 4th quarter, with only four of eleven economic sectors outpacing the Russell 2000 Index return for the quarter, and only six of eleven sectors posting positive results for the period. Most of the sector trends observable in large cap index sector performance also impacted small cap sectors. Similar to large cap issues, energy was the biggest detractor, falling -10.6% for the quarter. Returns for health care (12.7 %) and technology (6.1 %) drove positive index performance. Over the last year the materials, financials, and technology sectors each posted returns in excess of 30% and all eleven sectors posted positive performance over the trailing 1 -year period. ■ Using S &P 500 sector valuations as a proxy for the market, Forward P/E ratios for eight of the GICS sectors were higher than their long -term averages at quarter -end. Using these historical P/E measures, the energy, materials and utilities sectors appear the most extended. In contrast the technology, health care and telecommunications sectors were trading at a discount to their long -term average P/E ratios. The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2017 Russell 1000 1 ❑Quarter ❑1 -Year Consumer Disc (12.6 %) Consumer Staples (8.8 %) Energy (6.8 %) Financials (15.0 %) Health Care (13.2 %) Industrials (10.5 %) Info Technology (20.6 %) Materials (3.3 %) Real Estate (3.7 %) Telecom Services (2.4 %) Utilities (3.1 %) -10.0% 0.0% Russell 2000 Consumer Disc (12.2 %) Consumer Staples (2.9 %) Energy (3.7 %) Financials (19.7 %) Health Care (12.5 %) Industrials (14.6 %) Info Technology (17.1 %) Materials (5.0 %) Real Estate (8.0 %) Telecom Services (0.7 %) Utilities (3.6 %) .4% 13.2% 6.1% 6.3 14.0% .6% 33.4% s.6 °ro 12.4% 4.5% 18.8% 12.2% 24.7% 6.2 % 20.4% 3.3% 4.1% 4.0% - 6.3% 7.7% 10.0% 20.0% 30.0% ❑Quarter ❑1 -Year 11.3% 17.7% - 10.6% 26.7% -1.6% 37.5% 12.7% 26.1% 1.0% 28.0% 6.1% 33.2% 6.1 % 50.0% -0.2% 14.2% -5.5% 56% 4.7% 15.2% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 55.0% C � Source: Morningstar Direct 4 Russell 1000 Apple Inc Top 10 Weighted Weight 3.48% Stocks 1-Qtr Return 24.6% 1-Year Return 34.6% Sector Information Technology Microsoft Corp 2.20% 6.6% 22.4% Information Technology Amazon.com Inc 1.52% 18.2% 49.3% Consumer Discretionary Johnson & Johnson 1.51% 8.8% 18.3% Health Care Exxon Mobil Corp 1.51% -8.3% 1.6% Energy JPMorgan Chase & Co 1.41% 2.4% 52.5% Financials Facebook Inc A 1.41% 23.5% 24.5% Information Technology Berkshire Hathaway Inc B 1.39% 2.3% 17.5% Financials General Electric Co 1.21% -4.9% -3.3% Industrials AT &T Inc 1.13% -1.1% 11.2% Telecommunication Services Top Community Health Systems Inc r Weight 0.00% 1-Qtr Return 58.7% Quarter) 1-Year Return -41.9% Sector Health Care NRG Energy Inc 0.03% 52.8% 45.0% Utilities Vertex Pharmaceuticals Inc 0.12% 48.4% 37.6% Health Care bluebird bio Inc 0.00% 47.3% 113.9% Health Care Arconic Inc 0.05% 42.4% N/A Industrials DexCom Inc 0.03% 41.9% 24.8% Health Care Agios Pharmaceuticals Inc 0.01% 39.9% 43.8% Health Care Activision Blizzard Inc 0.12% 38.9% 48.2% Information Technology Lumentum Holdings Inc 0.00% 38.0% 97.8% Information Technology Alnylam Pharmaceuticals Inc 0.02% 36.9% 1 -18.4% 1 Health Care Bottom Russell 1000 AM Cobalt International Energy Inc r Weight 0.00% 1-Qtr Return -56.3% Quarter) 1-Year Return -82.0% Sector Energy Seadrill Ltd 0.00% -54.6% -51.5% Energy Rite Aid Corp 0.02% -48.4% -47.9% Consumer Staples Vista Outdoor Inc 0.01% -44.2% -60.3% Consumer Discretionary Babcock & Wilcox Enterprises Inc 0.00% -43.7% -56.4% Industrials Colony NorthStar Inc A 0.03% -36.1% -17.5% Real Estate Frontier Communications Corp Class B 0.01% -34.1% -57.0% Telecommunication Services GNC Holdings Inc 0.00% -33.3% -76.1% Consumer Discretionary Fossil Group Inc 0.00% -32.5% -60.7% Consumer Discretionary Endo International PLC 0.01% -32.2% -60.4% Health Care The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2017 a Source: Morningstar Direct 5 Tussell 000 01�Mlketurn Advanced Micro Devices Inc 0.58% 28.3% 410.5% Sector Information Technology The Chemours Co 0.37% 74.4% 454.3% Materials Microsemi Corp 0.31% -4.5% 34.5% Information Technology Olin Corp 0.29% 29.2% 95.8% Materials LogMeln Inc 0.27% 1.5% 96.4% Information Technology New Residential Investment Corp 0.27% 11.1% 65.4% Financials Coherent Inc 0.26% 49.7% 123.8% Information Technology Take -Two Interactive Software Inc 0.26% 20.2% 57.3% Information Technology Exelixis Inc 0.26% 45.3% 441.8% Health Care F N B Corp 0.25% -6.5% 18.3% Financials Top r Quarter) Russell 2000 Calithera Biosciences Inc 0.00% 255.4% 103.3% Health Care Rocket Fuel Inc 0.00% 213.5% 70.2% Information Technology Esperion Therapeutics Inc 0.03% 182.0% 108.8% Health Care ViewRay Inc 0.00% 171.9% 97.9% Health Care Global Blood Therapeutics Inc 0.03% 155.0% 132.3% Health Care TG Therapeutics Inc 0.02% 150.6% 36.7% Health Care Internap Corp 0.00% 141.6% 36.3% Information Technology Applied Optoelectronics Inc 0.05% 139.5% 276.6% Information Technology Infinity Pharmaceuticals Inc 0.01% 139.3% -38.7% Health Care Newl-ink Genetics Corp 0.03% 134.4% 1 32.4% 1 Health Care Quarter) -IMMLeturn Sector Argos Therapeutics Inc 0.00% -90.8% -92.9% Health Care Peabody Energy Corp 0.00% -86.4% -70.7% Energy Ultrapetrol Bahamas Ltd 0.00% -83.2% -93.8% Industrials GulfMark Offshore Inc 0.00% -80.0% -94.3% Energy Rentech Inc 0.00% -79.8% -77.5% Materials Walter Investment Management Corp 0.00% -77.3% -85.9% Financials Adeptus Health Inc Class A 0.00% -76.4% -96.8% Health Care Novan Inc 0.00% -76.4% N/A Health Care Galena Biopharma Inc 0.00% -68.6% -97.8% Health Care Cumulus Media Inc Class A 0.00% -68.5% -91.4% Consumer Discretionary a Source: Morningstar Direct 5 ■ While USD strength is on the high side of its 10 -year range, the USD weakened through the quarter providing a tailwind to international index returns denominated in USD. However, the 1 -year performance for the broad international indices still show a large negative currency impact from USD strength. The primary factors contributing to USD strength are an increasing divergence in U.S. monetary policy (tightening) relative to other developed countries (further accommodation) as well as the Trump administration's pro - growth policy agenda. However, improvement in growth prospects outside of the U.S. and the measured implementation of a more restrictive U.S. monetary policy has led to a pause in the USD's upward trajectory. ■ International index performance for the 1St quarter was broadly positive for both developed and emerging markets in both USD and local currency terms. In USD terms, the developed market MSCI EAFE Index returned 7.3% as continued monetary stimulus and improving macroeconomic data in the U.K., Europe and Asia increased investor optimism, fueling demand for stocks. Returns in Europe and Japan were supplemented by perceived stabilization within their respective political systems. Also, noteworthy was the U.K. decision to invoke Article 50, signaling the start of their two -year separation process with the European Union. Returns for Eurozone stocks were up over 8% while stocks in Japan and the U.K. gained 4.5% and 5.0% in USD respectively. Developed market index performance is also robust when viewed over the 1 -year period with the EAFE index returning 11.7% in USD terms. ■ Emerging market equities had an impressive start to 2017 with the MSCI Emerging Market Index posting an 11.4% USD return for the 1St quarter. A weakening USD, continued improvement in global growth, and a lack of Trump administration attention toward protectionist trade policies provided an attractive backdrop for emerging market returns. India (17.1 %), Poland (17.8 %) and South Korea (16.9 %) had the strongest returns in USD terms, while Russia (4.6 %) was the index's worst performing constituent. In USD terms, emerging markets have returned a substantial 17.2% over the past 12 months. Stocks in Latin America outperformed, led by Brazil's 42.8% return, pushing the MSCI Emerging Market Latin America Index 23.3% higher for the 1 -year period. The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2017 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) Quarter Performance I oUSD ❑Local Currency 7.9% 5.2% 6.8% 4.5% 7.3% 4.7% 74% 6.0% 6.99/, 2.5% 11.4% 7.8 2.7% -0.2 13.4% 9.7% 12.1% 7.6% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 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) Source: MSCI Global Index Monitor (Returns are Net) 6 13.1% 17.3% 11.9% 18.0° 11.7% 1s.o° 9.s °% o 19.2% 15.8% 15.6% 17.2% 15.1% 9.1% 4.3% 18.1% 16.9% 23.3% 19.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% I W1, MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 12.2% 5.3% 8.7% Consumer Staples 11.4% 9.1% 2.6% Energy 5.0% -1.8% 18.8% Financials 21.3% 7.3% 19.9% Health Care 10.7% 8.3% 2.1% Industrials 14.3% 9.1% 14.5% Information Technology 5.7% 11.7% 20.7% Materials 7.9% 7.6% 30.4% Real Estate 3.7% 6.0% 3.9% Telecommunication Services 4.4% 5.1% -2.8% Utilities Total 3.4% 100.0% 7.7% 1.5% Consumer Discretionary 11.3% e 6.9% 9.1% Consumer Staples 9.9% 8.6% 2.3% Energy 6.8% -0.9% 18.4% Financials 23.3% 7.5% 18.9% Health Care 8.0% 8.0% 1.5% Industrials 11.9% 9.5% 13.9% Information Technology 9.9% 14.6% 25.9% Materials 8.0% 8.4% 29.0% Real Estate 3.2% 6.7% 4.0% Telecommunication Services 4.5% 6.0% -0.9% Utilities 3.2% 8.2% 2.2% Consumer Discretionary 10.4% 12.9% 10.4% Consumer Staples 6.9% 7.6% 1.6% Energy 7.3% 4.4% 24.1% Financials 24.1% 10.0% 22.1% Health Care 2.4% 5.5% -2.0% Industrials 5.9% 13.6% 8.1% Information Technology 24.5% 17.0% 30.4% Materials 7.5% 12.1% 27.7% Real Estate 2.6% 10.5% 7.5% Telecommunication Services 5.6% 7.6% 3.0% Utilities Total 2.8% 100.0% 10.0% 4.0% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2017 Country MorWeight Japan 23.4% Weight 16.3% Return 4.5% 14.4% United Kingdom 17.9% 12.4% 5.0% 7.4% France 10.2% 7.1% 7.3% 12.4% Germany 9.5% 6.6% 8.4% 14.2% Switzerland 8.7% 6.1% 8.3% 9.1% Australia 7.6% 5.3% 11.0% 21.1% Hong Kong 3.5% 2.4% 13.4% 16.6% Netherlands 3.5% 2.4% 11.3% 12.9% Spain 3.4% 2.3% 14.8% 18.4% Sweden 2.9% 2.0% 9.5% 10.4% Italy 2.2% 1.5% 6.2% 7.6% Denmark 1.6% 1.1% 6.1% -9.8% Singapore 1.3% 0.9% 13.5% 9.5% Belgium 1.2% 0.8% 5.1% -0.4% Finland 1.0% 0.7% 7.3% 7.9% Israel 0.7% 0.5% 5.5% -11.8% Norway 0.6% 0.4% 1.4% 13.0% Ireland 0.5% 0.3% 3.8% 0.6% Austria 0.2% 0.1% 9.0% 21.9% New Zealand 0.2% 0.1% 2.0% 8.1% Portugal 0.2% 0.1% 8.3% 8.6% Canada Total Developed Countries 6.9% 76.5% 2.5% nlr"-6.8% 14.8% 11.9% China 6.3% 12.9% 19.7% Korea 3.5% 16.9% 20.9% Taiwan 2.9% 11.8% 23.0% India 2.1% 17.1% 18.4% Brazil 1.8% 10.4% 42.8% South Africa 1.6% 4.4% 8.1 Russia 0.9% -4.6% 27.6% Mexico 0.9% 16.0% -2.8% Indonesia 0.6% 7.0% 12.5% Malaysia 0.6% 8.3% -8.1% Thailand 0.5% 8.6% 17.6% Chile 0.3% 15.9% 18.6% Poland 0.3% 17.8% 3.5% Philippines 0.3% 6.1% -7.3% Turkey 0.2% 10.8% -16.6% Qatar 0.2% 1.9% 4.3% United Arab Emirates 0.2% 2.3% 7.0% Colombia 0.1% 5.7% 9.2% Peru 0.1% 5.5% 29.3% Greece 0.1% -3.5% Hungary 0.1% -0.1% Czech Republic 0.0% 5.7% Egypt 0.0% 1.8% "-4.5% l� Source: MSCI Global Index Monitor (Returns are Net in USD) 7 ■ Each of the fixed income benchmarks we track posted gains for the 1St quarter with the broad market Bloomberg Barclays Aggregate Index returning 0.8% for the period. Short -term market yields rose through the quarter as investors prepared for a widely anticipated 25 basis point (bps) interest rate increase by the Fed. The Fed's second rate hike in six - months was supported by growing inflation and continued improvement in U.S. macroeconomic data. The effect of the interest rate increase was largely "priced in" by the market as participants viewed the move as a sign of continued Fed confidence in the U.S. economic recovery. Fixed income index performance was mixed over the 1 -year period with the Bloomberg Barclays Aggregate index returning a muted 0.4% for the period. ■ Lower quality bonds outperformed higher quality issues for both the quarter and 1 -year period as contracting credit spreads from improvements in economic fundamentals acted as a tailwind to these issues. During the 1St quarter credit spreads for high yield debt decreased by 26 bps versus only 5 bps for investment grade corporate issues. AAA issues returned a muted 0.6% over the quarter compared to a solid 1.7% return for Baa issues. High yield debt was the largest beneficiary of these economic trends, returning 2.7% for the quarter and a significant 16.4% for the 1 -year period. ■ A review of sector performance shows credit and U.S. TIPS outpaced U.S. Treasury and mortgage backed security (MBS) indices. Credit issues benefited from tightening spreads and TIPS strength coincided with higher future inflation expectations. MBS was the worst performing sector for the quarter as the Fed signaled an eventual end to their ongoing reinvestment in agency MBS (shrinking their balance sheet), which caused spreads on MBS to rise 12 bps. Led by a weakening USD, global bond indices posted solid results for the quarter. Fixed income returns over the 1 -year period are mixed with the corporate and TIPS segments outpacing Treasury and MBS issues. Despite a strong quarter, global bond returns trail domestic indices over the 1 -year period with the Bloomberg Barclays Aggregate ex U.S. returning -3.9% for the period. ■ The Fed indicated future rate increases will be implemented at a measured pace based on an ongoing assessment of current economic data. However, future policy action by the Trump administration and global economic developments will also likely impact the pace of future interest rate increases. Current market expectations are for two additional interest rate increases in 2017. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of March 31, 2017 AAA (5.5) AA (6.0) A (7.4) Baa (7.4) U.S. High Yield (4.0) U.S. Treasury (6.1) U.S. Mortgage (5.0) U.S. Corporate IG (7.3) U.S. TIPS (5.7) Aggregate (6.0) Intermediate Agg (4.4) Global Agg x US (7.8) Multiverse (6.8) Quarter Performance 0.6% 1.0% 1.0% 2.7% 0.7% 0.5% 1.2% 1.3% Zo .8 % 0.7 2.5% 1.9% 0.0% 1.0% 2.0% 3.0% AAA (5.5) AA (6.0) A (7.4) Baa (7.4) U.S. High Yield (4.0) U.S. Treasury (6.1) U.S. Mortgage (5.0) U.S. Corporate IG (7.3) U.S. TIPS (5.7) Aggregate (6.0) Intermediate Agg (4.4) Global Agg x US (7.8) Multiverse (6.8) 1 -Year Performance -0.7% 0.8 1.8% 5.2% 16.4% -1.4% 0.2% 3.3% 1.5% 0.4% 0.3% -3.9% _1.0% -5.0% 0.0% 5.0% 10.0% 15.0% 8 4.0% 20.0% 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 2016, the 10 -year Treasury yield (green line) rose dramatically in the 4t" quarter of 2016 but held largely steady during the 1St quarter of 2017. After closing 2016 with a 2.45% yield, the 10 -year Treasury finished the 1St quarter at a slightly lower 2.40 %. 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. This line illustrates a steady decline in credit spreads throughout 2016 and into 2017. This decline is equivalent to an interest rate decrease on corporate bonds, which produces a tailwind for corporate bond index returns. These credit spreads have tightened by about 75 bps over the last 12- months. The green shading at the bottom of the graph illustrates the continued increase in the Federal Funds Rate due to a less accommodative Fed monetary policy. The lower graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. The yield curve flattened throughout the 1St quarter as yields on shorter -term maturities rose during the period, while interest rates on the long end of the curve (beyond 5- years) exhibited marginal declines. While interest rate movement during the during 1St quarter were relative small, the significant upward shift in interest rates since June of 2016 is clearly visible. Yields on the 3 -month Treasury Bill have increased by 50 bps since June 30, 2016 and yields on the 30 -year Treasury Bond have jumped by more than 70 bps over the same period. Despite the rise in short -term interest rates, most fixed income indices finished the 1St quarter in positive territory. In a rising rate environment, it is generally expected that longer- duration market indices will fall more than equivalent lower- duration benchmarks. However, the magnitude of interest rate shifts across the term structure and spread movements can lead to atypical short - term results. Finally, while global benchmarks are impacted by the same local yield and duration factors as domestic benchmarks, the returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. This currency effect can either be an offsetting benefit to negative yield and duration factors in a rising rate environment as it was during the 1St quarter, or it can further exacerbate negative performance as it did in 2016. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2017 1 -Year Trailing Market Rates 6, Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury _10yr TIPS Mar -16 Apr -16 May -16 Jun -16 Jul -16 Aug -16 Sep -16 Oct -16 Nov -16 Dec -16 Jan -17 Feb -17 Mar -17 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 X6/30/2016 X9/30/2016 0 12/31/2016 0 3/31/2017 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 December 31, 2016 : $4390629418 Allocation Segments Market Value Asset Allocation Summary Total Fund As of March 31. 2017 Asset Allocation By Segment as of March 31, 2017 : $4497869090 Allocation Allocation Segments Market Value Allocation • Domestic Equity 22,099,161 51.3 ■ Domestic Equity 23,378,673 52.2 • International Equity 5,766,106 13.4 ■ International Equity 6,195,688 13.8 • Domestic Fixed Income 8,292,685 19.3 ■ Domestic Fixed Income 8,374,765 18.7 Other Fixed Income 1,482,179 3.4 Other Fixed Income 1,329,239 3.0 • Real Estate 4,804,774 11.2 ■ Real Estate 4,863,891 10.9 • Cash Equivalent 617,512 1.4 ■ Cash Equivalent 642,835 1.4 10 Allocation Asset Allocation By Manager as of December 31, 2016 : $4390629418 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of March 31. 2017 Asset Allocation By Manager as of March 31, 2017 : $4497859090 Market Value Allocation Vanguard Total Stock Market (VITSX) 22,099,161 51.3 Vanguard Total Stock Market (VITSX) 23,378,673 52.2 RBC Global (Voyageur) 5,766,106 13.4 RBC Global (Voyageur) 6,195,688 13.8 d Galliard Core Fixed Income 4,632,926 10.8 d Galliard Core Fixed Income 4,665,531 10.4 — Intercontinental 2,839,950 6.6 — Intercontinental 2,883,983 6.4 • American Core Realty Fund 1,988,901 4.6 ■ American Core Realty Fund 2,003,854 4.5 • Crescent Direct Lending Fund 1,482,179 3.4 Vanguard Inflation- Protected Secs (VAIPX) 1,385,676 3.1 Vanguard Inflation- Protected Secs (VAIPX) 1,366,526 3.2 ■ Crescent Direct Lending Fund 1,329,239 3.0 Galliard TIPS 1,210,121 2.8 Galliard TIPS 1,227,188 2.7 • Vanguard Short Term Bond Index (VSCSX) 1,091,989 2.5 ■ Vanguard Short Term Bond Index (VSCSX) 1,100,148 2.5 Receipt & Disbursement 584,559 1.4 Receipt & Disbursement 615,111 1.4 11 Asset Allocation vs. Target Allocation Total Fund As of March 31, 2017 Asset Allocation vs. Target Allocation Total Domestic Equity 2.2% Total International Equity -1.2% Total Domestic Fixed Income 3.7% Total Global Fixed Income -5.0% Total Real Estate 0.9% Total Other Fixed Income -2.0% Receipt & Disbursement 1.4% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation ( %) Target ( %) Total Domestic Equity 23,378,673 52.2 50.0 Total International Equity 6,195,688 13.8 15.0 Total Domestic Fixed Income 8,378,543 18.7 15.0 Total Global Fixed Income - - 5.0 Total Real Estate 4,887,837 10.9 10.0 Total Other Fixed Income 1,329,239 3.0 5.0 Receipt & Disbursement 615,111 1.4 0.0 Total Fund 44,785,090 100.0 100.0 12 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 Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Mar -2017 26,944,044 64.63 29,674,360 66.04 23,378,673 62.20 23,378,673 52.20 6,196,688 13.83 6,195, 688 13.83 9,707,782 21.68 8,378,643 18.71 4,665,531 10.42 1,227,188 2.74 1,100,148 2.46 1,385,676 3.09 1,329,239 2.97 1,329,239 2.97 4,887,837 10.91 2,003,854 4.47 2,883,983 6.44 616,111 1.37 44,786,090 100.00 Dec -2016 26,944,044 64.63 27,866,267 64.71 22,099,161 61.32 22,099,161 51.32 6,766,106 13.39 5,766,106 13.39 9,783,740 22.72 8,301,661 19.28 4,632,926 10.76 1,210,121 2.81 1,091,989 2.54 1,366,526 3.17 1,482,179 3.44 1,482,179 3.44 4,828,861 11.21 1,988,901 4.62 2,839,950 6.59 684,669 1.36 43,062,418 100.00 13 Sep -2016 431,060 1.03 41,692,898 100.00 Asset Allocation Asset Allocation History By Portfolio As of March 31, 2017 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 1,396,062 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 Asset Allocation Asset Allocation History By Portfolio As of March 31, 2017 Jun -2016 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 1,206,381 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 Mar -2016 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 1,242,677 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 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 91 _--d Historical Asset Allocation by Segment Total Fund October 1, 2007 To March 31, 2017 0.0 L' _ 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Other Fixed Income Real Estate Cash Equivalent 14 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of March 31, 2017 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 12.0 4.0 O O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 52.20 (15) 13.83 (60) 18.71 (83) 0.00 2.97 (93) 10.91 (17) 1.37 (45) 5th Percentile 58.18 26.65 46.16 9.58 31.92 13.15 8.58 1 st Quartile 50.19 20.12 34.01 5.22 19.33 9.88 2.49 Median 43.46 14.64 28.12 4.71 11.81 7.47 1.20 3rd Quartile 34.28 11.97 20.81 3.16 4.96 4.98 0.55 95th Percentile 21.10 7.18 12.89 0.68 2.52 2.93 0.05 CJ 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31, 2017 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 01/01/2017 Transfers Fees Expenses Deprec. 03/31/2017 Total Equity 27,865,267 13,442 - 13,442 -995 146,892 1,563,197 29,574,360 Total Domestic Equity 22,099,161 - - - 104,409 1,175,103 23,378,673 Vanguard Total Stock Market (VITSX) 22,099,161 - - - 104,409 1,175,103 23,378,673 Total International Equity 5,766,106 13,442 - 13,442 -995 42,483 388,093 6,195,688 RBC Global (Voyageur) 5,766,106 13,442 - 13,442 -995 42,483 388,093 6,195,688 Total Fixed Income 9,783,740 - 152,940 -3,351 -151 6,706 73,779 9,707,782 Total Domestic Fixed Income 8,301,561 - -3,351 -151 6,706 73,779 8,378,543 Galliard Core Fixed Income 4,632,926 -3,351 - - 35,956 4,665,531 Galliard TIPS 1,210,121 - -151 1,658 15,560 1,227,188 Vanguard Short Term Bond Index (VSCSX) 1,091,989 - 3,599 4,560 1,100,148 Vanguard Inflation- Protected Secs (VAIPX) 1,366,526 - 1,448 17,702 1,385,676 Total Other Fixed Income 1,482,179 - 152,940 - - 1,329,239 Crescent Direct Lending Fund 1,482,179 - 152,940 - - - 1,329,239 Total Real Estate 4,828,851 - 24,077 - 10,110 53,824 39,349 4,887,837 American Core Realty Fund 1,988,901 - 24,077 -5,526 29,472 15,084 2,003,854 Intercontinental 2,839,950 - - - -4,584 - 24,352 24,265 2,883,983 Receipt & Disbursement 584,559 10,635 696,779 - 659,472 - - 17,976 585 - 615,111 Total Fund Portfolio 43,062,418 - 152,940 696,779 - 659,472 - 26,902 - 19,123 208,007 1,676,324 44,785,090 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2016 To March 31, 2017 Financial Reconciliation Fiscal Year to Date Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2016 Transfers Fees Expenses Deprec. 03/31/2017 Total Equity 26,944,044 26,572 - 26,572 -1,913 305,580 2,326,649 29,574,360 Total Domestic Equity 21,225,417 - - - 243,406 1,909,850 23,378,673 Vanguard Total Stock Market (VITSX) 21,225,417 - - - 243,406 1,909,850 23,378,673 Total International Equity 5,718,627 26,572 - 26,572 -1,913 62,175 416,799 6,195,688 RBC Global (Voyageur) 5,718,627 26,572 - 26,572 -1,913 62,175 416,799 6,195,688 Total Fixed Income 9,608,964 10,999 -6,994 -1,474 69,354 26,934 9,707,782 Total Domestic Fixed Income 7,069,677 1,350,000 -6,773 -303 61,928 - 95,986 8,378,543 Galliard Core Fixed Income 4,736,754 - -6,773 - - - 64,450 4,665,531 Galliard TIPS 1,232,715 - -303 3,153 -8,377 1,227,188 Vanguard Short Term Bond Index (VSCSX) 1,100,208 - - 11,515 - 11,576 1,100,148 Vanguard Inflation- Protected Secs (VAIPX) - 1,350,000 - - 47,260 - 11,584 1,385,676 Total Other Fixed Income 1,395,062 - 97,749 -221 -1,171 - 33,318 1,329,239 Crescent Direct Lending Fund 1,395,062 - 97,749 -221 -1,171 - 33,318 1,329,239 Total Real Estate 4,708,831 -48,036 - 44,649 - 109,861 161,830 4,887,837 American Core Realty Fund 1,994,730 - 48,036 - 11,010 59,034 9,136 2,003,854 Intercontinental 2,714,101 - - - 33,639 - 50,827 152,694 2,883,983 Receipt & Disbursement 431,060 - 142,475 1,681,676 - 1,316,071 - -40,143 1,064 - 615,111 Total Fund Portfolio 41,692,898 - 152,940 1,681,676 - 1,316,071 - 78,215 -43,530 485,859 2,515,413 44,785,090 17 3 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of March 31, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 4.32 6.97 6.77 J 9.55 5.74 11/01/2000 Total Fund Policy 4.36 6.12 11.74 6.82 9.23 5.43 Total Fund (New Mgrs) (Net) 4.32 6.97 12.81 6.77 9.55 5.63 10/01/2007 Total Fund Policy 4.36 6.12 11.74 6.82 9.23 6.28 Total Fund (Gross) 4.39 (54) 7.17 (5) 13.16 (9) 7.11 (2) 9.99 (1) V.3q (17) 11/01/2000 Total Fund Policy 4.36 (56) 6.12 (23) 11.74 (31) 6.82 (5) 9.23 (6) 5.43 All Public Plans -Total Fund Median 4.43 5.28 10.90 5.55 7.77 5.74 Total Fund (New Mgrs) (Gross) 4.39 (54) 7.17 (5) 13.16 (9) 7.11 (2) 9.99 (1) 6.17 (10) 10/01/2007 Total Fund Policy 4.36 (56) 6.12 (23) 11.74 (31) 6.82 (5) 9.23 (6) 6.28 (7) All Public Plans -Total Fund Median 4.43 5.28 10.90 5.55 7.77 5.31 Total Equity 17.55 8.04 12.28 - 6.48 01/01/2001 Total Equity Policy 6.13 9.43 16.79 7.73 11.63 5.20 Total Domestic Equity 5.79 (57) 10.14 (50) 18.08 (33) 9.77 (51) 12.78 (58) 6.52 (36) 11/01/2000 Total Domestic Equity Policy 5.74 (59) 10.19 (49) 18.07 (33) 9.76 (51) 13.18 (52) 5.17 (89) IM U.S. Large Cap Core Equity (SA +CF) Median 5.97 10.14 16.32 9.80 13.22 6.05 Total International Equity 7.47 (61) 8.38 (41) 15.59 (22) 2.77 (29) 11.00 (4) 6.25 (58) 11/01/2000 MSCI EAFE Index 7.39 (63) 6.66 (63) 12.25 (65) 0.96 (60) 6.32 (60) 4.16 (98) IM International Large Cap Value Equity (SA +CF) Median 7.72 7.85 13.25 1.48 6.73 6.44 Total Fixed Income 0.82 0.99 3.30 = v 11/01/2000 Total Fixed Policy 0.68 -1.38 0.35 2.25 1.95 4.74 Total Domestic Fixed Income 0.97 (100) -0.68 (100) 1.32 (100) 2.46 (99) 2.13 (100) 4.81 (98) 11/01/2000 Total Domestic Fixed Policy 0.68 (100) -1.38 (100) 0.35 (100) 2.25 (99) 1.95 (100) 4.74 (98) IM U.S. Large Cap Core Equity (SA +CF) Median 5.97 10.14 16.32 9.80 13.22 6.05 Total Real Estate 1.94 (35) 5.82 (15) 10.75 (25) 12.72 (37) 13.43 (37) 5.68 (28) 10/01/2007 NCREIF Fund Index -ODCE (VVV) 1.77 (44) 3.92 (73) 8.33 (73) 11.79 (64) 11.98 (69) 4.91 (50) IM U.S. Open End Private Real Estate (SA +CF) Median 1.51 4.11 8.66 12.31 12.75 4.91 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 March 31, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 5.79 (42) 10.14 (37) 18.08 (24) 9.70 (11) N/A 13.60 (16) 03/01/2013 Vanguard Total Stock Market Index Hybrid 5.79 (41) 10.14 (37) 18.09 (24) 9.71 (10) 13.16 (14) 13.62 (15) IM U.S. Multi -Cap Core Equity (MF) Median 5.49 9.48 15.25 7.50 11.89 12.30 RBC Global (Voyageur) 7.47 (61) 8.38 (41) 15.59 (22) 2.77 (29) 11.00 (4) 3.52 (14) 11/01/2007 MSCI EAFE Index 7.39 (63) 6.66 (63) 12.25 (65) 0.96 (60) 6.32 (60) 0.28 (84) IM International Large Cap Value Equity (SA +CF) Median 7.72 7.85 13.25 1.48 6.73 1.19 Galliard Core Fixed Income 0.78 (61) -1.36 (87) 0.68 (67) 2.57 (30) 2.42 (35) 3.97 (70) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 0.68 (81) -1.38 (89) 0.35 (84) 2.25 (56) 1.95 (75) 3.86 IM U.S. Intermediate Duration (SA +CF) Median 0.81 -1.04 0.94 2.31 2.23 4.16 Galliard TIPS 1.42 (26) -0.42 (21) 1.54 (55) 1.59 (69) 0.79 (70) 3.36 (97) 10/01/2007 Blmbg. Barc. U.S. TIPS 1 -10 Year 1.05 (86) -0.44 (22) 1.45 (72) 1.46 (91) 0.62 (91) 3.41 (95) IM U.S. TIPS (SA +CF) Median 1.27 -1.00 1.56 2.03 1.01 4.10 Vanguard Short Term Bond Index (VSCSX) 0.75 (39) -0.01 (38) 1.80 (36) N/A N/A 2.13 (19) 01/01/2015 Blmbg. Barc. U.S. Corporate 1 -5 Year Index 0.94 (14) 0.12 (28) 2.05 (28) 2.10 (11) 2.46 (17) 2.24 (14) IM U.S. Intermediate Investment Grade (MF) Median 0.70 -0.26 1.39 1.45 1.64 1.43 American Core Realty Fund 2.27 (25) 3.49 (83) 6.71 (96) 10.97 (88) 11.35 (79) 4.57 (69) 10/01/2007 American Core Realty Policy 1.83 (42) 4.03 (55) 8.62 (56) 11.96 (62) 11.98 (69) 7.05 IM U.S. Open End Private Real Estate (SA +CF) Median 1.51 4.11 8.66 12.31 12.75 4.91 Intercontinental 1.71 (45) 7.52 (1) 13.78 (13) 13.85 (25) 14.59 (29) 14.82 (35) 10/01/2010 NCREIF Fund Index -ODCE 1.77 (44) 3.92 (73) 8.33 (73) 11.79 (64) 11.98 (69) 12.93 (74) IM U.S. Open End Private Real Estate (SA +CF) Median 1.51 4.11 8.66 12.31 12.75 13.48 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 7.14 Comparative Performance - IRR Inception 6.74 As of March 31, 2017 Inception Date 10/14/2014 Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2017 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) 6.97 (7) 0.33 (28) 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 6.12 (23) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.28 -0.53 10.15 12.50 17.93 0.29 9.93 1.60 -12.96 14.09 Total Fund (New Mgrs) (Net) 6.97 (7) 0.33 (28) 11.85 (13) 15.72 (6) 18.95 (27) -1.17 (81) 10.66 (31) 0.68 (65) -16.82 (92) N/A Total Fund Policy 6.12 (23) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.28 -0.53 10.15 12.50 17.93 0.29 9.93 1.60 -12.96 14.09 Total Fund (Gross) 7.17 (6) 0.63 (22) 12.21 (8)' 16.33 (4) 19.81 (14) -0.46 (68) 11.40 (18) 1.43 (62) -16.48 (90) 13.92 (64) Total Fund Policy 6.12 (23) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.28 -0.53 10.15 12.50 17.93 0.29 9.93 1.60 -12.96 14.09 Total Fund (New Mgrs) (Gross) 7.17 (5) 0.63 (22) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (68) 11.40 (19) 1.39 (53) -16.46 (90) N/A Total Fund Policy 6.12 (23) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 5.28 -0.53 10.15 12.50 17.93 0.29 9.93 1.60 -12.96 14.09 Total Equity -1.62 IW 16.4 23.09 '27.08 -4.68 18.62 Total Equity Policy 9.43 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 10.14 (50) -0.59 (62) 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 10.19 (49) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (58) 10.96 (30) -6.91 (64) -21.98 (67) 16.44 (60) IM U.S. Large Cap Core Equity (SA +CF) Median 10.14 0.00 19.24 20.62 29.70 1.16 9.48 -5.77 -20.46 16.96 Total International Equity 8.38 (41) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (19) -39.55 (100) 23.63 (55) MSCI EAFE Index 6.66 (63) -8.27 (43) 4.70 (64) 24.29 (41) 14.33 (55) -8.94 (55) 3.71 (66) 3.80 (65) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median 7.85 -9.29 5.75 22.93 15.39 -8.62 5.00 6.20 -27.36 23.87 Total Fixed Income 0.99 1.40 6.34, ' 4.67 9.27 ' 10.63 4.96 Total Fixed Policy 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income -0.68 (100) 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 -1.38 (100) 2.95 (20) 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 10.14 0.00 19.24 20.62 29.70 1.16 9.48 -5.77 -20.46 16.96 Total Global Fixed Income N/A -7.63 (91) 6.31 (12) 3.53 (2) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -7.11 (97) -3.83 (51) -0.07 (96) -4.60 (82) N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.73 -3.76 3.41 -1.80 7.18 1.77 7.68 13.86 -1.37 7.50 Total Real Estate 6.82 (16) 14.27 (66) 13.47 (39) 16.42 (20) 12.81 (64) 16.82 (72) 2.71 (77) -32.42 (36) 4.72 (36) N/A NCREIF Fund Index -ODCE 3.92 (73) 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (49) 18.21 (48) IM U.S. Open End Private Real Estate (SA +CF) Median 4.11 15.54 12.90 13.22 12.90 16.62 6.39 -34.80 2.98 17.85 Returns for periods greater than one year are annualized. Returns are expressed as 10/1/2007 inception date represents the date new managers were hired. Total Fund percentages. Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. 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 March 31, 2017 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 10.01 (31) 8.99 8.38 (41) 6.66 (63) 7.85 10.14 (37) 10.14 (37) 9.48 -1.36 (87) -1.38 (89) -1.04 -0.42 -0.44 N/A (38) N/A -6.03 N/A -21.19 (31) 33.21 (8) -1.17 (75) 11.93 (44) 3.17 (55) 19.15 (39) 19.27 (64) 29.19 (38) 3.78 (30) 12.65 (35) 3.60 (15) 18.12 (28) 20.26 (58) 27.62 (37) 1.37 (2) 11.29 5.04 (13) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (52) 11.69 (15) -8.27 (43) 4.70 (64) 24.29 (41) 14.33 (55) -8.94 (55) 3.71 (66) -9.29 (72) 5.75 (70) 22.93 (68) 15.39 (77) -8.62 (35) 5.00 N/A -0.59 (35) 17.77 (30) N/A (70) N/A (69) N/A (66) N/A (41) -0.55 (34) 17.77 (30) 21.60 (60) 30.28 (16) 0.71 (23) 11.16 (30) -1.62 16.19 22.81 26.42 -1.75 9.55 17.85 3.04 (25) 3.15 (37) -0.64 (75) 5.82 (45) 4.16 (27) 9.63 (17) 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (23) 7.52 (77) 2.70 (55) 2.87 (67) -0.27 (40) 5.57 (43) 3.60 (52) 8.25 18.21 (48) -0.38 0.59 -3.71 6.01 6.73 7.28 -0.82 0.61 -3.90 17.85 6.32 7.19 7.40 0.53 (22) -15.13 (16) -1.85 (37) -20.88 (54) -3.03 -20.30 11.87 (19) N/A 3.80 (65) -30.13 (72) 6.20 -27.36 N/A (38) N/A -6.03 (56) -21.19 (31) -5.46 -22.79 12.08 (38) -1.68 (95) 9.69 (81) 4.16 (36) 11.50 N/A 3.26 N/A 19.35 (56) 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 -0.01 (38) N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.12 (28) 1.98 (12) 2.46 (26) 1.47 (15) 6.29 (28) 1.83 (58) 8.25 (37) 16.02 (2) -2.84 (73) 5.04 (13) -0.26 1.21 1.64 -0.55 4.92 1.99 7.52 10.47 -0.18 4.27 3.49 (83) 13.98 (68) 12.49 (66) 12.27 (72) 11.56 (70) 16.11 (68) 2.71 (77) -32.42 (35) 4.72 (36) N/A 4.03 (55) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 5.27 (25) N/A 4.11 15.54 12.90 13.22 12.90 16.62 6.39 -34.80 2.98 17.85 7.52 (1) 13.96 (68) 14.10 (31) 18.21 (10) 13.38 (43) 15.68 (73) N/A N/A N/A N/A 3.92 (73) 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (49) 18.21 (48) 4.11 15.54 12.90 13.22 12.90 16.62 6.39 -34.80 2.98 17.85 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 16.00 14.00 12.00 10.00 E ' 8.00 K 6.00 4.00 2.00 0.00 O O • 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 4.39 (54) 7.17 (5) 13.16 (9) 7.04 (1) 7.11 (2) 9.47 (2) 9.99 (1) • Total Fund Policy 4.36 (56) 6.12 (23) 11.74 (31) 6.03 (6) 6.82 (5) 8.75 (6) 9.23 (6) Median 4.43 5.28 10.90 4.61 5.55 7.30 7.77 Comparative Performance 28.00 24.00 20.00 16.00 12.00 K 8.00 4.00 0.00 • -4.00 ■ -8.00 Performance Review Total Fund Portfolio As of March 31. 2017 it 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 (68) • Total Fund Policy 10.64 (19) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) Median 9.67 Sep -2015 -0.53 10.15 12.50 17.93 0.29 -4.68 (38) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Total Fund Portfolio 2.66 (3) 4.39 (9) 1.16 (92) 1.40 (29) 4.15 (5) -4.68 (38) Total Fund Policy 1.69 (14) 3.50 (47) 1.73 (63) 0.98 (53) 4.06 (6) -4.63 (36) All Public Plans -Total Fund Median 0.76 3.41 1.91 1.04 2.88 -5.03 23 1:1� 3 Yr Rolling Under /Over Performance - 5 Years 20.0 e Over o Performance 0 16.0 • • o � a 12.0 v LL 8.0 Under 0 F Performance 4.0 1 1 1 4.0 8.0 12.0 16.0 20.0 Total Fund Policy (% ) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 7.80 7.28 • 6.76 O «' 6.24 v K 5.72 5.20 1 1 1 1 4.74 4.80 4.86 4.92 4.98 5.04 5.10 5.16 5.22 Risk (Standard Deviation %) Return Standard Deviation Performance Review Total Fund Portfolio As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years O e 0® 0 8 8 8 8 e 8 8 9 8 8 e 0 25.0 v . U 50.0 `w a E 75.0 v K 100.0 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count • Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 10.95 10.22 - 9.49 O v 8.76 K 8.03 7.30 5.0 5.2 19(95%) 1 (5 %) 0 (0 %) 0 (0 %) 20(100%) 0 (0 %) 0 (0 %) 0 (0 %) 1 5.4 5.6 5.8 6.0 6.2 Risk (Standard Deviation %) Return Standard Deviation • Total Fund Portfolio 7.11 4.98 • Total Fund Portfolio 9.99 6.07 O Total Fund Policy 6.82 4.82 O Total Fund Policy 9.23 5.36 Median 5.55 5.12 Median 7.77 5.43 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.96 105.12 108.46 0.18 0.30 1.39 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 1.33 110.67 125.59 -0.25 0.57 1.60 1.11 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) 28.00 1 Qtr 1 Qtr 24.00 1 Qtr 1 Qtr 20.00 Ending Ending Ending 00 16.00 Ending 12.00 Sep -2016 Jun -2016 E v Dec -2015 00 K 4.12 (42) 4.42 (53) 8.00 0.95 (38) 6.26 (15) -7.26 (37) VG Total Stock Mkt Hybrid mA 4.00 2.69 (21) 0.95 (38) 0.00 -7.26 (36) IM U.S. Multi -Cap Core Equity (MF) Median -4.00 4.51 1.39 -8.00 4.87 -8.02 �i 0 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 5.79 (42) 10.14 (37) 18.08 (24) 8.43 (10) 9.70 (11) 12.81 (15) N/A • VG Total Stock Mkt Hybrid 5.79 (41) 10.14 (37) 18.09 (24) 8.43 (10) 9.71 (10) 12.84 (15) 13.16 (14) Median 5.49 9.48 15.25 5.80 7.50 11.45 11.89 Comparative Performance 44.00 36.00 28.00 20.00 E v 12.00 K 4.00 -4.00 -12.00 Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2017 9 h M -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 (13) -0.59 (35) 17.77 (30) N/A N/A N/A • VG Total Stock Mkt Hybrid 14.99 (13) -0.55 (34) 17.77 (30) ?1.60 (60) 30.28 (16) 0.71 (23) Median 11.41 -1.62 16.19 ?2.81 ?6.42 -1.75 25 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 VG Total Stock Mkt (VITSX) 4.12 (42) 4.42 (53) 2.67 (22) 0.95 (38) 6.26 (15) -7.26 (37) VG Total Stock Mkt Hybrid 4.11 (42) 4.41 (54) 2.69 (21) 0.95 (38) 6.25 (16) -7.26 (36) IM U.S. Multi -Cap Core Equity (MF) Median 3.58 4.51 1.39 0.36 4.87 -8.02 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 10.08 ce 9.36 - 8.64 «' 7.92 v an0 L Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O 0 p 0 0 25.0 00 00 O p U 50.0 - O `w a 75.0 v K Under 100.0 moo Performance 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 I 11.0 12.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count * VG Total Stock Mkt (VITSX) 5 O VG Total Stock Mkt Hybrid 20 Peer Group Scatterg ram - 5 Years 13.44 13.02 O 12.60 «' 12.18 v K 11.76 - 1 1 11.34 1 1 1 10.57 10.64 10.71 10.78 10.85 10.92 10.20 10.30 10.40 10.50 10.60 10.70 10.80 10.90 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation 4 (80 %) 1 (20 %) 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) 0 (0 %) 0 (0 %) • VG Total Stock Mkt (VITSX) 9.70 10.55 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 9.71 10.54 O VG Total Stock Mkt Hybrid 13.16 10.35 Median 7.50 10.81 Median 11.89 10.79 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 99.97 100.02 -0.02 -0.20 0.92 1.00 5.94 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 1.00 5.93 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 1.00 5.77 o 3 Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 28.00 24.00 20.00 16.00 12.00 v 8.00 00 _ • 4.00 ■ 0.00 -4.00 L I• i • 44.00 36.00 28.00 20.00 12.00 v K 4.00 -4.00 • -12.00 ■ -20.00 Performance Review RBC Global (Voyageur) As of March 31. 2017 O O O C' • -8.00 -28.00 J 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 • RBC Global (Voyageur) 7.47 (61) 8.38 (41) 15.59 (22) 4.72 (18) 2.77 (29) 8.49 (9) 11.00 (4) O RBC Global (Voyageur) 10.74 (26) -4.36 (20) 10.08 (8) 27.54 (17) 24.74 (3) -8.75 (52) • MSCI EAFE Index 7.39 (63) 6.66 (63) 12.25 (65) 1.69 (69) 0.96 (60) 4.99 (61) 6.32 (60) O MSCI EAFE Index 7.06 (60) -8.27 (43) 4.70 (64) 24.29 (41) 14.33 (55) -8.94 (55) Median 7.72 7.85 13.25 2.58 1.48 5.59 6.73 Median 8.32 -9.29 5.75 22.93 15.39 -8.62 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 RBC Global (Voyageur) 0.85 (35) 12.90 (3) -5.53 (98) -0.69 (38) 4.56 (34) -10.23 (46) MSCI EAFE Index -0.68 (57) 6.50 (58) -1.19 (45) -2.88 (77) 4.75 (27) -10.19 (44) IM International Large Cap Value Equity (SA +CF) Median -0.31 7.00 -1.41 -1.66 3.78 -10.75 27 3 3 Yr Rolling Under /Over Performance - 5 Years 32.0 Over Performance 24.0 v o A oO 0 16.0 - 0 > �0OO n 8.0 CP 0 0 O U 0.0 m -8.0 -8.0 0.0 8.0 16.0 MSCI EAFE Index ( %) OOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 3.20 is 2.40 E 1 Fin Performance Review RBC Global (Voyageur) As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 2.77 12.65 O RBC Global (Voyageur) 11.00 y 0.0 00000 0.96 0 0 0 0 0 0 0 0 0 10.98 K 1.48 10.86 0 6.73 0 Historical Statistics - 3 Years 00 w 25.0 Tracking Up O O Information 50.0 Downside 0 0 0 O O O 00 Ratio Ratio Beta Risk Capture 0 00 O O a 104.55 O 0 0 0.27 0.97 8.60 MSCI EAFE Index 0.00 00 O 100.00 O 1.00 8.18 Historical Statistics - 5 Years 75.0 Tracking Up Down Information Sharpe K Downside Error Market Market Alpha Ratio Ratio Beta Risk Under 100.0 Capture � 1 Performance 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 24.0 32.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count e 0.80 O 0.00 10.29 10.78 11.27 11.76 12.25 12.74 13.23 Risk (Standard Deviation %) Return Standard Deviation O RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 12.00 10.00 8.00 6.00 4.00 10.50 11.00 18 (90 %) 2 (10 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 11.50 12.00 12.50 Risk (Standard Deviation %) Return 9 13.00 Standard Deviation 13.50 O RBC Global (Voyageur) 2.77 12.65 O RBC Global (Voyageur) 11.00 13.04 O MSCI EAFE Index 0.96 10.37 O MSCI EAFE Index 6.32 10.98 Median 1.48 10.86 Median 6.73 11.18 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.99 104.55 93.37 1.93 0.37 0.27 0.97 8.60 MSCI EAFE Index 0.00 100.00 100.00 1.00 8.18 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.06 112.03 87.73 4.72 0.87 0.83 0.97 8.74 MSCI EAFE Index 100.00 100.00 0.00 1.00 8.60 28 uz� Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 5.07 4.28 3.49 2.70 1.91 c v 1.12 K • 0.33 - FP -0.46 1.25 1 - -2.04 -2.83 O O Comparative Performance 12.00 10.00 8.00 6.00 c v 4.00 K 2.00 0.00 -2.00 00 0 WE Performance Review Galliard Core Fixed Inc As of March 31. 2017 -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 (75) 5.82 (45) 4.16 (27) • Barclays Int Agg Index 3.57 (72) 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (23) Median 3.90 2.70 2.87 -0.27 5.57 3.60 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 0.78 (61) -1.36 (87) 0.68 (67) 1.66 (39) 2.57 (30) 1.92 (37) 2.42 (35) • Barclays Int Agg Index 0.68 (81) -1.38 (89) 0.35 (84) 1.27 (81) 2.25 (56) 1.69 (65) 1.95 (75) Median 0.81 -1.04 0.94 1.55 2.31 1.79 2.23 Comparative Performance 12.00 10.00 8.00 6.00 c v 4.00 K 2.00 0.00 -2.00 00 0 WE Performance Review Galliard Core Fixed Inc As of March 31. 2017 -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 (75) 5.82 (45) 4.16 (27) • Barclays Int Agg Index 3.57 (72) 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (23) Median 3.90 2.70 2.87 -0.27 5.57 3.60 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Galliard Core Fixed Inc -2.12 (88) 0.30 (59) 1.77 (34) 2.54 (1) -0.29 (27) 1.04 (35) Barclays Int Agg Index -2.05 (79) 0.31 (58) 1.44 (72) 2.31 (1) -0.51 (65) 1.08 (30) IM U.S. Intermediate Duration (SA +CF) Median -1.84 0.37 1.58 -0.42 -0.42 0.92 ORA 3 3 Yr Rolling Under /Over Performance - 5 Years 10.0 Over Performance c 7.5 v w c X 5.0 v U 2.5 v 0.0 A 0 2.5 1 1 -2.5 0.0 2.5 5.0 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.80 is 2.60 2.40 v 2.20 2.00 2.25 2.28 2.31 2.34 2.37 Risk (Standard Deviation %) Return Performance Review Galliard Core Fixed Inc As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 2.57 2.42 • Galliard Core Fixed Inc y 0.0 2.38 • Barclays Int Agg Index 2.25 2.31 • Barclays Int Agg Index 1.95 x25.0 2.18 •0 2.31 2.28 Median 2.23 2.22 Historical Statistics - 3 Years OOOOO Tracking Up Down Information Sharpe 0 0 Error Market 50.0 Alpha Ratio O O p p 0 0 O 0 Capture v Galliard Core Fixed Inc 0.33 p 00 p EL e 75.0 0 Op 0 OO O 00 O0 00 0.00 v 1.00 Historical Statistics - 5 Years K Tracking Up Down Information Sharpe 100.0 Error Market Market Alpha Ratio Ratio Beta Under Capture Capture Performance 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 1 7.5 10.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count L91 2.40 2.43 Standard Deviation 2.46 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 2.60 is 2.40 2.20 v 2.00 O 1.80 2.12 2.16 2.20 3 (15 %) 17 (85 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 11 (55 %) 7 (35 %) 1 1 1 2.24 2.28 2.32 Risk (Standard Deviation %) Return 2.36 2.40 Standard Deviation 2.44 • Galliard Core Fixed Inc 2.57 2.42 • Galliard Core Fixed Inc 2.42 2.38 • Barclays Int Agg Index 2.25 2.31 • Barclays Int Agg Index 1.95 2.18 Median 2.31 2.28 Median 2.23 2.22 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.33 107.57 98.36 0.23 0.97 1.13 1.04 1.20 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 0.37 111.65 99.09 0.36 1.25 1.06 1.05 1.29 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 W 3 Peer Group Analysis - IM U.S. TIPS (SA +CF) 5.00 4.16 3.32 2.48 1.64 g o O O E 0 0.80 ' K -0.04 - -0.88 -1.72 17.00 14.00 11.00 8.00 5.00 00 `0 0 r 2.00 K i Performance Review Galliard TIPS As of March 31. 2017 5 -2.56 -1.00 - -4.00 - -7.00 - i Performance Review Galliard TIPS As of March 31. 2017 5 -2.56 -10.00 -3.40 1 1 -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 1.42 (26) -0.42 (21) 1.54 (55) 1.60 (53) 1.59 (69) -0.07 (38) 0.79 (70) O Galliard TIPS 4.75 (95) -0.38 (19) 0.59 (86) -3.71 (10) 6.01 (98) 6.73 (96) • Barclays US TIPS 1 -10 Yr 1.05 (86) -0.44 (22) 1.45 (72) 1.65 (46) 1.46 (91) -0.18 (77) 0.62 (91) O Barclays US TIPS 1 -10 Yr 4.83 (95) -0.82 (55) 0.61 (81) -3.90 (18) 6.32 (92) 7.19 (84) Median 1.27 -1.00 1.56 1.61 2.03 -0.09 1.01 Median 6.51 -0.80 1.54 -5.73 9.01 9.52 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Galliard TIPS -1.82 (31) 0.63 (84) 1.33 (82) 3.64 (70) -0.88 (98) -0.60 (6) Barclays US TIPS 1 -10 Yr -1.47 (15) 0.57 (96) 1.32 (85) 3.60 (76) -0.70 (81) -0.86 (24) IM U.S. TIPS (SA +CF) Median -2.38 0.99 1.70 4.28 -0.65 -1.12 ca uz� 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over Performance .... 8.0 rn a_ ~ 4.0 v A 0.0 0 4.0 1 -4.0 0.0 4.0 Barclays US TIPS 1 -10 Yr ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.20 Performance Review Galliard TIPS As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 1.59 3.52 • Galliard TIPS y 0.0 3.98 O Barclays US TIPS 1 -10 Yr 1.46 3.31 • Barclays US TIPS 1 -10 Yr 0.62 3.83 Median 2.03 og 4.14 Median w 25.0 4.94 Historical Statistics - 3 Years O Q Q c Tracking Up Down Information v 50.0 -� Downside Error O O Alpha Ratio EL Beta Risk O Capture O r 75.0 O O e p 97.06 e 0.25 Under w Performance � e 8 Q O Q e e o 0 100.00 0.00 O 100.0 lJ O 1 Tracking Up Down Information 8.0 12.0 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Ratio Beta Risk 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 2.00 I 1.80 «' 1.60 • 1.40 p 1.20 1 1 1 1 3.04 3.20 3.36 3.52 3.68 3.84 4.00 4.16 4.32 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 1.20 is 1.00 0.80 O 0.60 O 0.40 1 3.57 3.78 3.99 2 (10 %) 2 (10 %) 4 (20 %) 12 (60 %) 2 (10 %) 0 (0 %) 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 1.59 3.52 • Galliard TIPS 0.79 3.98 O Barclays US TIPS 1 -10 Yr 1.46 3.31 • Barclays US TIPS 1 -10 Yr 0.62 3.83 Median 2.03 4.14 Median 1.01 4.94 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.54 100.74 97.06 0.10 0.25 0.46 1.03 1.88 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 0.86 101.33 97.20 0.15 0.21 0.21 1.04 2.48 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 1.00 32 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 6.82 5.84 4.86 3.88 2.90 Z; 1.92 K 0.94 • O -0.04 -1.02 -2.00 -2.98 0 p0 •• 0 • •0 M • Comparative Performance 12.00 10.00 8.00 6.00 4.00 c v K 2.00 0.00 -2.00 -4.00 Performance Review VG ST Bond Index (VSCSX) As of March 31. 2017 ■ -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 (23) N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 3.33 (27) 1.98 (12) 2.46 (26) 1.47 (15) 6.29 (28) 1.83 (58) Median 2.71 1.21 1.64 -0.55 4.92 1.99 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 0.75 (39) -0.01 (38) 1.80 (36) 1.87 (13) N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 0.94 (14) 0.12 (28) 2.05 (28) 1.90 (13) 2.10 (11) 2.00 (7) 2.46 (17) Median 0.70 -0.26 1.39 1.08 1.45 1.10 1.64 Comparative Performance 12.00 10.00 8.00 6.00 4.00 c v K 2.00 0.00 -2.00 -4.00 Performance Review VG ST Bond Index (VSCSX) As of March 31. 2017 ■ -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 (23) N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 3.33 (27) 1.98 (12) 2.46 (26) 1.47 (15) 6.29 (28) 1.83 (58) Median 2.71 1.21 1.64 -0.55 4.92 1.99 33 uz� 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 VG ST Bond Index (VSCSX) -0.75 (32) 0.48 (42) 1.32 (42) 1.75 (33) -0.18 (5) 0.59 (29) Barclays US Corp 1 -5 Yr Index -0.81 (35) 0.52 (36) 1.39 (30) 1.76 (33) -0.37 (21) 0.58 (30) IM U.S. Intermediate Investment Grade (MF) Median -1.00 0.41 1.23 1.61 -0.56 0.27 33 uz� Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 20.00 QTR 17.00 1 YR 14.00 3 YR 4 YR 11.00 E • American Core RE 2.27 (25) p 8.00 - 9.98 (86) 5.00 - 11.35 (79) • American Core RE Policy C' 4.03 (55) 8.62 (56) 2.00 - 11.96 (62) 12.29 (68) -1.00 - Median -4.00 4.11 C O C1 Comparative Performance 32.00 29.00 26.00 23.00 20.00 E 17.00 K 14.00 11.00 8.00 5.00 Performance Review American Core RE As of March 31. 2017 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 (68) • American Core RE Policy 10.62 (66) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.02 15.54 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 2.27 (25) 3.49 (83) 6.71 (96) 9.98 (86) 10.97 (88) 11.51 (82) 11.35 (79) • American Core RE Policy 1.83 (42) 4.03 (55) 8.62 (56) 11.32 (48) 11.96 (62) 12.29 (68) 11.98 (69) Median 1.51 4.11 8.66 11.26 12.31 12.75 12.75 Comparative Performance 32.00 29.00 26.00 23.00 20.00 E 17.00 K 14.00 11.00 8.00 5.00 Performance Review American Core RE As of March 31. 2017 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 (68) • American Core RE Policy 10.62 (66) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.02 15.54 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 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 American Core RE 1.20 (82) 1.83 (69) 1.26 (94) 2.63 (53) 3.03 (78) 3.33 (73) American Core RE Policy 2.16 (55) 2.18 (46) 2.18 (59) 2.44 (61) 3.43 (57) 3.63 (49) IM U.S. Open End Private Real Estate (SA +CF) Median 2.21 2.11 2.47 2.64 3.57 3.56 34 3 3 Yr Rolling Under /Over Performance - 5 Years 16.0 Over Performance w 12.0 K v �j 8.0 w 4.0 E a 0.0 0.0 4.0 8.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 12.76 12.32 11.88 O «' 11.44 v K 11.00 10.56 1.20 1.40 1.60 1.80 Risk (Standard Deviation %) Return 12.0 N Performance Review American Core RE As of March 31. 2017 2.00 Standard Deviation 2.20 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 13.16 12.69 12.22 O «' 11.75 v K 11.28 10.81 1.00 1.20 0 (0 %) 0 (0 %) 6 (30 %) 14 (70 %) 0 (0 %) 1 (5 %) 16 (80 %) 3 (15 %) 0 1.40 1.60 1.80 Risk (Standard Deviation %) Return Standard Deviation 2.00 • American Core RE 3 Yr Rolling Percentile Ranking - 5 Years 1.93 • American Core RE 'r y K 0.0 O American Core RE Policy 11.96 1.34 • American Core RE Policy 11.98 w 25.0 Median 12.31 1.79 Median 12.75 1.77 Historical Statistics - 3 Years v � 50.0 - Tracking Up Down Information Sharpe a 75.0 - O e g 8® ° e e 8° 8 Alpha Q Q Ratio Beta e Capture 6 Q American Core RE 1.22 92.15 N/A -2.35 0 5.29 1.13 100.0 American Core RE Policy 0.00 100.00 N/A 0.00 Under 1.00 0.00 Historical Statistics - 5 Years Performance 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 16.0 Downside 5 -25 25- Median Median -75 75 -95 Ratio Ratio Beta Total Period Count Count Count Capture Count 2.00 Standard Deviation 2.20 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 13.16 12.69 12.22 O «' 11.75 v K 11.28 10.81 1.00 1.20 0 (0 %) 0 (0 %) 6 (30 %) 14 (70 %) 0 (0 %) 1 (5 %) 16 (80 %) 3 (15 %) 0 1.40 1.60 1.80 Risk (Standard Deviation %) Return Standard Deviation 2.00 • American Core RE 10.97 1.93 • American Core RE 11.35 1.58 O American Core RE Policy 11.96 1.34 • American Core RE Policy 11.98 1.17 Median 12.31 1.79 Median 12.75 1.77 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.22 92.15 N/A -2.35 -0.74 5.29 1.13 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 1.05 94.98 N/A -0.64 -0.55 6.70 1.01 0.00 American Core RE Policy 0.00 100.00 N/A 1.00 0.00 35 3 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 O 23.00 14.00 20.00 11.00 O c c v v 17.00 K O K 8.00 - 0 14.00 5.00 11.00 2.00 8.00 -1.00 - -4.00 1 1 5.00 2.00 Performance Review Intercontinental As of March 31. 2017 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 1.71 (45) 7.52 (1) 13.78 (13) 14.26 (21) 13.85 (25) 14.41 (25) 14.59 (29) • Intercontinental 13.30 (21) 13.96 (68) 14.10 (31) 18.21 (10) 13.38 (43) 15.68 (73) • NCREIF Fund Index 1.77 (44) 3.93 (72) 8.34 (73) 10.97 (71) 11.79 (64) 12.28 (68) 11.98 (69) • NCREIF Fund Index 10.08 (79) 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) Median 1.51 4.11 8.66 11.26 12.31 12.75 12.75 Median 11.02 15.54 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 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Sep -2015 Intercontinental 5.71 (1) 3.88 (4) 1.87 (79) 1.15 (97) 5.84 (4) 3.67 (49) NCREIF Fund Index 2.11 (58) 2.07 (55) 2.13 (62) 2.18 (65) 3.34 (63) 3.68 (48) IM U.S. Open End Private Real Estate (SA +CF) Median 2.21 2.11 2.47 2.64 3.57 3.56 uz� 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over Performance °-�- 16.0 oa b 0 O a O v O r 14.0 X O O O c U c 12.0 Under Performance 10.0 10.0 12.0 14.0 16.0 18.0 NCREIF Fund Index ( %) 0 Over Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 14.40 13.68 O 12.96 «' 12.24 11.52 p 10.80 0.72 1.08 1.44 1.80 2.16 2.52 2.88 3.24 3.60 Risk (Standard Deviation %) Return Standard Deviation Performance Review Intercontinental As of March 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 3.20 • Intercontinental 14.59 3.08 A v 25.0 1.39 0 00 00 0 0 O O Median 12.31 0 Median 0 O O O Historical Statistics - 3 Years Tracking 50.0 -0 00 O Information Sharpe Q Downside Error Market O 00000000 Alpha Ratio Ratio 0 0 O E 75.0 Capture O O K 116.97 N/A 6.97 0.61 4.07 0.57 0.00 NCREIF Fund Index 100.0 N/A 0.00 N/A 1.00 0.00 Historical Statistics - 5 Years 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Tracking Up Down 5 -25 25- Median Median -75 75 -95 Error Market Total Period Alpha Ratio Ratio Beta Risk Capture Capture Count Count Count Count O Intercontinental 15 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 5 (33 %) 10 (67 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 17 (85 %) 1 (5 %) 9 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation 3.60 • Intercontinental 13.85 3.20 • Intercontinental 14.59 3.08 O NCREIF Fund Index 11.79 1.39 O NCREIF Fund Index 11.98 1.25 Median 12.31 1.79 Median 12.75 1.77 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.16 116.97 N/A 6.97 0.61 4.07 0.57 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 3.05 121.02 N/A 7.63 0.79 4.45 0.56 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 March 31, 2017 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: $2,416,652 Management Fees: $913 Expenses: $82,136 Interest: - Total Contributions: $2,416,652 Remaining Capital Commitment: $669,301 Total Distributions: $1,247,444 Market Value: $1,329,239 Inception Date: 10/14/2014 Inception IRR: 6.7 TVPI: 1.1 Cash Flow Analysis $3,250,000.0 $2,600,000.0 $1,950,000.0 $1,300,000.0 $650,000.0 $0.0 ($650,000.0) 10/14 1/15 4/15 7/15 10/15 1/16 4/16 7/16 10/16 1/17 4/17 Net Asset Value Distribution Contributions 38 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 March 31, 2017 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 March 31, 2017 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: Yes No NIA 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: Yes No NIA 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 40 Vanguard Total RBC Global Gaillard TIPS VG Short BD Manager Compliance: Yes No NIA Yes No NIA Yes No NIA Yes No NIA 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. ✓ ✓ ✓ ✓ ✓ American RE Intercontinental Manager Compliance: Yes No NIA Yes No NIA Yes No NIA Yes No NIA 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 Stock Market (VITSX) Total Domestic Equity RBC Global (Voyageur) Total International Equity Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Domestic Fixed Income Crescent Direct Lending Fund Total Other Fixed Income Intercontinental American Core Realty Fund Total Real Estate Receipt & Disbursement Total Fund Estimated Annual Fee N 0.04 0.04 0.95 0.96 0.25 0.15 0.12 0.19 1.35 1.36 1.10 1.10 1.10 0.35 41 Market Value 23,378,673 23,378,673 6,195, 688 6,196,688 4,665,531 1,227,188 1,100,148 8,378,643 1,329,239 1,329,239 2,883,983 2,003,854 4,887,837 615,111 44,785,090 Winter Springs General Employees General Plan and Trust Fee Analysis As of March 31, 2017 Estimated Annual Fee 9,351 9,361 58,859 68,869 11,664 1,841 1,320 16,210 17,945 17,946 31,724 22,042 63,766 156,132 Fee Schedule 0.04 % of Assets 0.95 % of Assets 0.25 % of Assets 0.15 % of Assets 0.12 % of Assets 1.35 % of Assets 1.10 % of Assets 1.10 % of Assets 3 Disclosures Total Fund As of March 31, 2017 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. AndCo Consulting 1 (844) 44 -ANDCO I AndCo Consulting. com