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Home My WebLink About2017 08 10 Regular 502 Quarterly Investment Return Report BOARD OF TRUSTEES AGENDA ITEM Informational Consent ITEM 502 Public Hearings Regular X August 10, 2017 Mgr. / Dept. Regular Meeting Authorization REQUEST: The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From AndCo Consulting The Third Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (46 Pages) Investment Performance Review Period Ending June 30, 2017 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44 -ANDCO I AndCoConsultingxom 2nd Quarter 2017 Market Environment Returns for the 2nd quarter of 2017 were positive for most major equity and fixed income indices. Broad domestic and international equity market performance was largely fueled by continued improvement in economic data worldwide. Domestic equities trailed international indices during the quarter. While U.S. economic fundamentals and corporate earnings growth were viewed positively, political concerns surrounding the pace of implementation of Trump administration expansive fiscal policy reforms and the fallout associated with the dismissal of FBI Director James Comey dampened investor enthusiasm. Despite these concerns, investor optimism remained high and many major domestic equity indices hit record levels during the quarter. Large cap stocks continued a year -to -date trend of outperformance relative to small cap equities with the S &P 500 Index returning 3.1% versus a 2.5% return for the Russell 2000 Index. However, small cap stock returns still show substantial outperformance relative to large cap indices over the one -year period due to their remarkable performance in the second half of 2016. International equity market benchmarks continued to outpace U.S. markets through the 2nd quarter of 2017 as both developed and emerging market international equities saw benefits from continued strength in global macroeconomic data, a weakening U.S. Dollar (USD) and ongoing accommodative global central bank policies. While the ongoing improvement in the global economy pushed international index returns higher, gains were tempered toward the end of the quarter as central banks began to signal an increased probability of a future reduction in stimulus. Emerging markets narrowly outperformed developed markets for the quarter. The MSCI Emerging Market Index returned 6.3% for the quarter and a solid 23.7% for the 1 -year period. While weaker by comparison, the developed market MSCI EAFE Index also posted robust performance returning 6.1% for the quarter and 20.3% for the year. The yield curve flattened through the 2nd quarter of 2017 as interest rates in the U.S. declined through the majority of the second quarter before rising moderately in June. The rise in interest rates coincided with the Federal Open Market Committee's (FOMC) June meeting and their decision to further tighten monetary policy by raising short -term interest rates by 0.25 %. The Fed also announced a plan to systematically shrink the size of its balance sheet, gradually reducing its securities holdings by tapering the amount they reinvest as securities mature. This can be viewed similarly to a tightening of monetary policy. Broad fixed income indices were generally positive through the quarter with the bellwether Bloomberg Barclays U.S. Aggregate Index returning 1.4% for the quarter. Benefitting from falling credit spreads, corporate credit was the only investment grade sector to post gains over the 1 -year period returning 2.3% versus a -0.3% return for the Bloomberg Barclays U.S. Aggregate Index. MSCI ACWxUS 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 June 30, 2017 Quarter Performance 5.8% 6.1 % 6.3% 3.1 % 3.0% 3.1% 2.7% 2.5% 1.4/0 1.2% -0.4 0.9% 2.5% 0.2% -2.0% 0.0% MSCI ACWxUS 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 1 -Year Performance -0.3% -2.2% -0.6% -0.1% 2.3 0.5% 2.0% 4.0% 6.0% 8.0% 20.5% 20.3% 23.7% 17. % 1 .5% 18.3% 16.5% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% CJ Source: Investment Metrics 2 ■ U.S. equity index returns were positive across the style and capitalization spectrum for the 2nd quarter and the trailing 1 -year period. Domestic equity index returns were driven by positive trends in economic data reported throughout the period including improvements in GDP, consumer and business sentiment, and employment. In addition, corporate earnings grew at a double digit pace for 1Q 2017 with most sectors showing improvement. U.S. equity returns were somewhat subdued by ongoing political concerns. Media attention surrounding the dismissal of FBI Director James Comey and the ongoing gridlock associated with the repeal and replacement of the Affordable Care Act has cast doubt on the current administration's ability to implement promised expansionary fiscal policy measures. ■ 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. While large cap stocks were the best performers, returns for the quarter fell in a narrow range for the period. Large -cap stocks represented by the Russell 1000 Index returned 3.1% for the quarter while the small cap Russell 2000 Index returned 2.5 %. This return spread was partially due to the effects of rising interest rates and a falling USD. Conversely, over the 1 -year period, small cap issues still maintain a considerable performance advantage, with the Russell 2000 returning 24.6% versus a return of 18.0% for the Russell 1000. ■ Building on trends from the 1St quarter, index sector allocations were a substantial contributor to growth index outperformance during the 2nd quarter. Growth indices benefitted from significant underweights to the energy and telecommunications 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 0.7% was the worst performing style index for the period. Over the 1 -year period, growth indices outperformed value indices in the large and mid cap market capitalizations, but underperformed value equities within the small cap space. ■ 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% to 134% of their respective 15 -year P/E averages. The mid cap core and small cap value indices appear the most inexpensive and the large cap growth and small cap growth segments look the most overvalued. 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth The Market Environment Domestic Equity Style Index Performance As June 30, 2017 Quarter Performance - Russell Style Series 1.3% 3.0% 1.3% 3.1% 1.4% 2.7% 4.2% 0.7% 2.5% 0.0% 2.0% 4.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 0.0% 5.0% 10.0% 15.0% 16.2% 18.5% 15.5% 18. % 4.7% 4.7% J 4.4% 6.0% 20.7% 20.4% 15.9% ] 16.5% 17.0% 20.0% ■ 24.9% 24.6% 24.4% 25.0% 30.0% C � Source: Investment Metrics 3 ■ Sector performance within the Russell 1000 Index was largely positive for the 2nd quarter. Five of eleven economic sectors outpaced the Russell 1000 Index return, and nine of eleven sectors posted gains during the period. Energy trailed for the second consecutive quarter as crude prices continued to fall. While OPEC continues to take measures to limit production, accelerating output from shale producers in the U.S. fueled concerns of oversupply, putting downward pressure on prices. Telecommunication services was the only other large cap sector to post negative performance for the quarter, also returning -7.1 %. Despite continued uncertainty surrounding potential reform, health care was the best performing sector in the large cap index, returning 7.2 %. Technology and industrials also performed well as increasing business and consumer confidence and strong earnings pushed stock prices 4.3% higher in both sectors through the quarter. Over the trailing 1 -year period, financials and technology were the best performing sectors in the Russell 1000, each returning greater than 30 %. Eight of eleven large cap economic sectors posted positive returns for the 1 -year period with six posting double digit returns. ■ Small cap sector results generally lagged their large capitalization counterparts for the 2nd straight quarter. Six of eleven economic sectors outpaced the Russell 2000 Index return for the quarter, and nine of eleven sectors posted positive results for the period. Most of the sector trends observable in large cap index sector performance also impacted small cap sectors. However, small cap telecom services outperformed large cap telecom stocks by over 20 %, returning 15.5 %. Similar to large cap issues, energy was the biggest detractor, falling -19.7% for the quarter. Returns for health care were also solid through the quarter posting a 9.0% gain. Over the 1 -year period, the materials, financials, health care and technology sectors each posted returns in excess of 30% and seven sectors had gains greater than 10 %. Energy was the only Russell 2000 sector to post a negative return over last year, falling - 6.6 %. ■ 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. Consumer Disc (12.9 %) Consumer Staples (8.8 %) Energy (6.0 %) Financials (14.3 %) Health Care (13.4 %) Industrials (10.4 %) Info Technology (21.9 %) Materials (3.2 %) Real Estate (3.7 %) Telecom Services (2.2 %) Utilities (3.1 %) The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2017 Russell 1000 1 ❑Quarter 01 -Year 3.0% 18.5% .4% 3.0% 1 4.1% 7.2% 13.5% 1 4.3% 22.2% 4.3% 3.2% 19.4% 2.3% 2.2% 217% 37.1% 1 33.0% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% Russell 2000 1 ❑Quarter D1-Year Consumer Disc (12.4 %) Consumer Staples (2.9 %) Energy (3.1 %) Financials (19.0 %) Health Care (13.0 %) Industrials (14.4 %) Info Technology (17.8 %) Materials (4.9 %) Real Estate (8.0 %) Telecom Services (0.8 %) Utilities (3.8 %) 2.7% 16.3% -4.2% 2.7% - 19.7% -6.6% 0.9% 35.1% 9.0% 31.1% 2.3% 27.0% 3.8 134.6% 0.1 2.7% 9.8% 15.5% 11.6% 2.8% 7.6% -25.0% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% C � Source: Morningstar Direct 4 Russell 1000 Apple Inc Top 10 Weighted Weight 3.24% Stocks 1 -Qtr Return 0.7% 1-Year Return 53.5% Sector Information Technology Microsoft Corp 2.23% 5.2% 38.0% Information Technology Amazon.com Inc 1.66% 9.2% 35.3% Consumer Discretionary Johnson & Johnson 1.54% 6.9% 12.0% Health Care Facebook Inc A 1.52% 6.3% 32.1% Information Technology Exxon Mobil Corp 1.48% -0.6% - 10.7% Energy Berkshire Hathaway Inc B 1.40% 1.6% 17.0% Financials JPMorgan Chase & Co 1.39% 4.6% 51.0% Financials Alphabet Inc A 1.19% 9.7% 32.1% Information Technology Alphabet Inc C 1.18% 9.5% 31.3% Information Technology ITop Lsell 000 Wayfair Inc Class A 10 Performing Weight 0.01% Stocks (by 89.9% Quarter) 1-Year 97.1% Sector Consumer Discretionary Alnylam Pharmaceuticals Inc 0.03% 55.6% 43.7% Health Care SunPower Corp 0.00% 53.1% - 39.7% Information Technology First Solar Inc 0.01% 47.2% - 17.7% Information Technology ZiIlowGroup Inc C 0.02% 45.6% 35.1% Information Technology Yum China Holdings Inc 0.06% 45.0% N/A Consumer Discretionary ZiIlowGroup IncA 0.01% 44.5% 33.3% Information Technology Whole Foods Market Inc 0.06% 43.0% 33.9% Consumer Staples IAC /InterActiveCorp 0.03% 40.0% 83.4% Information Technology Akorn Inc 1 0.01% 39.3% 1 17.7% 1 Health Care Frontier Communications Corp Class B 0.00% e 44.2% e 73.4% Telecommunication Services Ensco PLC Class A 0.00% 42.3% 46.6% Energy Weatherford International PLC 0.01% - 41.8% 30.3% Energy Whiting Petroleum Corp 0.01% -41.8% -40.5% Energy Noble Corp PLC 0.00% -41.5% - 55.9% Energy Nabors Industries Ltd 0.01% - 37.3% - 17.3% Energy Chicago Bridge & Iron Co NV 0.00% -35.5% - 42.3% Industrials Diamond Offshore Drilling Inc 0.00% - 35.2% -55.5% Energy Hertz Global Holdings Inc 0.00% - 34.4% -73.8% Industrials United States Steel Corp 0.02% - 34.4% 32.4% Materials The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2017 l� Source: Morningstar Direct 5 Kite Pharma Inc 0.26% 32.1% 107.3% Health Care Gramercy Property Trust 0.23% 13.0% 11.8% Real Estate Catalent Inc 0.23% 23.9% 52.7% Health Care Medidata Solutions Inc 0.23% 35.6% 66.8% Health Care Parexel International Corp 0.23% 37.7% 38.2% Health Care Healthsouth Corp 0.22% 13.6% 27.5% Health Care Idacorp Inc 0.22% 3.6% 7.8% Utilities bluebird bio Inc 0.22% 15.6% 142.7% Health Care Fair Isaac Cor 1 0.22% 8.1% 23.4% Information Technology WGL Holdings Inc 1 0.22% 1 1.7% 21.1% Utilities Top 10 Performing Stocks (by Quarter) Russell 20 Weight 1-Qtr 1-Year Sector Return Return Straight Path Communications Inc 0.08% 399.4% 549.3% Telecommunication Services Altimmune Inc 0.00% 294.3% 146.8% Health Care Global Sources Ltd 0.01% 142.4% 118.1% Information Technology Puma Biotechnology Inc 0.13% 134.9% 193.4% Health Care Angie's List Inc 0.03% 124.4% 96.5% Information Technology Conn's Inc 0.02% 118.3% 154.0% Consumer Discretionary Weight Watchers International Inc 0.05% 114.6% 187.4% Consumer Discretionary NantKwest Inc 0.01% 113.8% 22.0% Health Care NovoCure Ltd 0.05% 113.6% 48.2% Health Care Vivint Solar Inc 0.01% 108.9% 1 90.6% Industrials Bottom 10 Performing Stocks (by Quarter) e Weight Re First NBC Bank Holding Co 0.00% - 99.3% -99.8% Financials Seadrill Ltd 0.00% -76.8% - 88.6% Energy Avinger Inc 0.00% - 76.4% -96.2% Health Care Bonanza Creek Energy Inc 0.03% -75.5% - 85.9% Energy EXCO Resources Inc 0.00% -71.5% - 86.4% Energy XBiotech Inc 0.00% -71.5% -77.5% Health Care Vince Holding Corp 0.00% - 69.6% - 91.4% Consumer Discretionary Newl-ink Genetics Corp 0.01% -69.5% - 34.7% Health Care Cobalt International Energy Inc 0.00% - 69.1% - 87.7% Energy Terravia Holdings Inc 0.00% -67.8% -91.1% Materials l� Source: Morningstar Direct 5 International equity returns for the 2nd quarter were largely driven by ongoing improvement in the global economy, a weakening USD and political news in Europe and the U.K. Emerging markets were the greatest beneficiaries of these trends, outperforming developed economies for the second straight quarter. While USD strength remains on the high side of its 10 -year range, the USD continued its year -to -date decline, providing further tailwinds to international index returns denominated in USD. However, the 1 -year performance for broad international indices still show a modest negative currency impact due to USD strength. Broad developed market international index performance was positive for the 2nd quarter in both USD and local currency terms with the MSCI EAFE Index returning 6.1% and 2.7% respectively. Eurozone, U.K. and Japanese markets advanced on the back of positive macroeconomic data and strong corporate earnings. Similar to U.S. markets, ongoing political developments also had an effect on international markets with elections in France and the U.K. making headline news. In France, the presidential election of centrist candidate Emmanuel Macron calmed market fears of further break -up within the European Union. Macron's party also won parliamentary majority giving rise to optimism on the possibility of new economic reforms. In the U.K., Prime Minister Theresa May's decision to call special elections in an attempt to strengthen her party's parliamentary position prior to the start of Brexit negotiations had the opposite effect and resulted in a hung parliament, increasing the odds of a "hard Brexit" scenario. Markets gave back some gains towards the end of the quarter as central bank commentary indicated the increased possibility of tightened monetary policy in the future. When viewed over the last 12 months, developed market index performance is robust in both USD and local currency terms, with the MSCI EAFE returning 20.3% and 22.1% respectively. A supportive global economic environment and a weakening USD allowed emerging markets to build on their strong start to the year, outperforming developed markets, and returning 6.3% and 6.6% in USD and local currency terms respectively. Greece had a particularly good quarter, returning 33.8% in USD terms, after it was able to reach an agreement to obtain additional bailout funds needed to pay creditors. Russia, Qatar and Brazil were the worst performing countries in the index. Russia and Qatar both suffered from falling oil prices. Qatar was also subject to a blockade by several neighboring countries alleging that Qatar is responsible for supporting instability within the region. Brazilian equities fell as corruption allegations against its President, Michel Temer, increased political risk within the country, putting downward pressure on equity markets. One year returns on the MSCI Emerging Market Index are an impressive 23.8% in USD terms. Source: MSCI Global Index Monitor (Returns are Net) The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2017 AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) Quarter Performance I oUSD ❑Local Currency 5.8% 3.3% 5.6% 2.3% 6.1 % 2.7% 7.4% 1.8% 3.9% 4.4% 6.3% 6.6% 2.1 olo 0.7% 8.6% -1.7% 9.1% 0.4% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1 -Year Performance I ■USD ❑Local Currency AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) 20.5% 21.3% 19.5% 21.2% md 20.3% 22.1% 20.8% 19.9% 19.3% 26.1% 23.8% 21.8% 12.9% 6.8% 27.9% 26.3% 15.0% 16.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0 %^^ CJ 6 MSCI-EAFE Consumer Discretionary Sector Weight 12.1% Quarter Return 4.7% 1-Year Return 24.2% Consumer Staples 11.5% 7.6% 7.3% Energy 4.7% -0.7% 6.1% Financials 21.5% 7.2% 39.8% Health Care 10.8% 7.2% 4.6% Industrials 14.5% 7.0% 24.5% Information Technology 6.1% 9.5% 35.8% Materials 7.5% 3.3% 33.1% Real Estate 3.6% 4.6% 7.7% Telecommunication Services 4.3% 4.8% 2.2% Utilities Total 3.4% 100.0% 7.2% 7.1% i I . - Consumer Discretionary 11.3% NIM6119,m 5.6% 23.7% Consumer Staples 9.9% 7.1% 6.5% Energy 6.3% -2.9% 6.5% Financials 23.3% 5.7% 33.6% Health Care 8.1% 7.2% 4.3% Industrials 12.0% 6.8% 23.8% Information Technology 10.8% 12.9% 41.9% Materials 7.6% 1.7% 27.2% Real Estate 3.2% 5.8% 9.1% Telecommunication Services 4.4% 4.0% 3.3% Utilities 3.1% 5.2% 5.9% r Consumer Discretionary 10.6% 8.4% 21.4% Consumer Staples 6.8% 5.1% 2.5% Energy 6.6% -4.9% 15.9% Financials 23.6% 3.9% 26.6% Health Care 2.4% 4.4% 1.9% Industrials 5.7% 3.9% 16.1% Information Technology 26.6% 15.5% 46.9% Materials 7.1% -0.5% 28.1% Real Estate 2.7% 11.4% 18.6% Telecommunication Services 5.4% 2.0% 5.1% Utilities Total 2.6% 100.0% -1.8% 1.6% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of June 30, 2017 Country ML Japan MSCI-EAFE'" Weight 23.5% MSCI-ACWIXU Weight 16.3% 5.2% 1- Ye OReturin§ 19.2% United Kingdom 17.7% 12.3% 4.7% 13.4% France 10.5% 7.3% 9.1% 28.1% Germany 9.5% 6.6% 6.4% 28.7% Switzerland 8.5% 5.9% 9.0% 16.5% Australia 7.1% 4.9% -1.9% 18.3% Netherlands 3.5% 2.5% 7.8% 28.2% Hong Kong 3.5% 2.4% 7.2% 23.87/o Spain 3.5% 2.4% 7.9% 38.4% Sweden 2.9% 2.0% 8.6% 26.7% Italy 2.3% 1.6% 9.0% 30.9% Denmark 1.8% 1.3% 15.3% 4.7% Singapore 1.3% 0.9% 5.3% 14.9% Belgium 1.1% 0.8% 4.8% 2.1% Finland 1.0% 0.7% 13.4% 25.0% Israel 0.7% 0.5% 6.5% -2.3% Norway 0.6% 0.4% 4.1% 14.9% Ireland 0.5% 0.3% 3.8% 15.8% Austria 0.2% 0.2% 21.8% 65.0% New Zealand 0.2% 0.1% 8.1% 10.4% Portugal 0.2% 0.1% 3.1% 15.2% Canada Total Developed Countries China 6.6% 76.2% 6.6% 0.6% 10.6% 32.2% Korea 3.7% 10.2% 34.9% Taiwan 3.0% 8.8% 32.9% India 2.1% 2.9% 17.5% Brazil 1.6% -6.7% 17.0% South Africa 1.6% 3.5% 10.2% Mexico 0.9% 7.2% 12.0% Russia 0.8% -10.0% 10.3% Indonesia 0.6% 8.5% 17.2% Malaysia 0.6% 5.1% 2.7% Thailand 0.5% 2.4% 17.1% Poland 0.3% 13.6% 42.6% Philippines 0.3% 7.1% -6.2% Turkey 0.3% 19.3% 8.1% Chile 0.3% -2.1% 14.0% United Arab Emirates 0.2% 1.3% 8.4% Qatar 0.2% -10.9% -2.3% Colombia 0.1% 2.5% 8.8% Peru 0.1% 7.2% 17.2% Greece 0.1% 1 33.8% 50.4% Hungary 0.1% 19.4% 44.4% Czech Republic 0.0% 8.1% 10.0% Pakistan 0.0% -2.3% 18.3% Egypt 0.0% 3.2% -2.1% r l r✓ Source: MSCI Global Index Monitor (Returns are Net in USD) 7 ■ Most broad fixed income benchmarks finished the 2nd quarter with modest gains. The Bloomberg Barclays U.S. Aggregate Index ended the quarter with a 1.4% increase. Interest rates fell through most of the period before rising near the end of the quarter. The Federal Open Market Committee (FOMC) voted to increase short -term interest rates by 25 basis points (bps) during their June meeting. This represented the third consecutive interest rate increase in the last 3 quarters. While inflation remains below target, the Fed viewed the economy as healthy enough to warrant continued tightening. This caused a flattening of the yield curve as short -term market yields rose through the quarter, but long term interest rates fell. The Fed also outlined plans to gradually reduce its balance sheet by slowing the rate of reinvestment of the Treasury and mortgage backed securities (MBS) it holds on its books as the securities mature. The amount reinvested each month will fall systematically, reducing the size of the Fed's balance sheet over time. Implementation of this plan could begin before the end of the year and would be viewed as further tightening of monetary policy. This news from the Fed put upward pressure on interest rates as the quarter came to a close. Most investment grade indices posting slightly negative returns over the last year. The Bloomberg Barclays U.S. Aggregate index returned -0.3% for the 1 -year 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 2nd quarter credit spreads for high yield debt decreased by 19 bps versus only 9 bps for investment grade corporate issues. BAA issues more than doubled the return of AAA securities, returning 2.7% versus a more modest 1.1 % for AAA debt. High yield debt has been the largest beneficiary of the strengthening economy, returning 2.2% for the quarter and 12.7% for the 1 -year period. ■ A review of sector performance shows investment grade credit outpacing other Treasuries, and MBS indices. As previously mentioned, corporate issues benefited from tightening credit spreads. MBS trailed Treasuries and investment grade corporates for the quarter as the Fed's plan to taper their ongoing reinvestment in agency MBS pushed spreads on MBS 5 bps higher while spreads tightened across all other fixed income sectors. TIPS posted the worst returns for the quarter, falling -0.4 %, as lower inflation expectations drove prices lower. Led by a weakening USD, global bond indices posted solid results for the quarter. However, hawkish comments from several global central banks pared some gains at the end of the period. Fixed income returns over the 1 -year period were broadly negative with only corporate issues posting gains. Despite a strong start to 2017, global bond returns trail domestic indices over the 1 -year period with the Bloomberg Barclays Aggregate ex U.S. returning -3.8% for the period. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of June 30, 2017 AAA (5.5) AA (6.2) A (7.5) Baa (7.6) U.S. High Yield (3.9) U.S. Treasury (6.2) U.S. Mortgage (4.7) U.S. Corporate IG (7.5) U.S. TIPS (5.4) Aggregate (6.0) Intermediate Agg (4.3) Global Agg x US (7.8) Multiverse (6.8) Quarter Performance 1.1% 1.6% 2.4% 2.7% 2.2% 1.2% 0.9% 2.5% -0.4% 1.4% 0.9% 3.5% 2.6% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% AAA (5.5) AA (6.2) A (7.5) Baa (7.6) U.S. High Yield (3.9) U.S. Treasury (6.2) U.S. Mortgage (4.7) U.S. Corporate IG (7.5) U.S. TIPS (5.4) Aggregate (6.0) Intermediate Agg (4.3) Global Agg x US (7.8) Multiverse (6.8) 1 -Year Performance -1.3% -0.2% 3.5% 12.7% -2.3% -0.1% 2.3% -0.6% -0.3% -0.2% -3.8% 1.4% -5.0% 0.0% 5.0% 8 10.0% 15.0% 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 the 10 -year Treasury yield (green line) rose dramatically in the 4t" quarter of 2016, held largely steady during the 1St quarter of 2017 and then gradually fell through most of 2nd quarter before spiking at the end of June. The yield on the 10 -year Treasury has fallen to 2.31 % from 2.45% at the start of the year. 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 65 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. Similar to the 1St quarter, the yield curve flattened further throughout the 2nd quarter as yields on shorter -term maturities rose, while interest rates on the long end of the curve (5 -years and beyond) continued to decline. Interest rate movement during the period was relatively muted, the significant upward shift in interest rates since the end of 2016 is clearly visible. Yields on the 3 -month Treasury Bill have jumped by almost 75 bps since September 30, 2016. Yields on the 30 -year Treasury Bond have increased by more than 50 bps over the same period. Despite the rise in short -term interest rates, most fixed income indices finished the 2nd 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 has been year -to -date, or it can further exacerbate negative performance as it did in 2016. 3.50 3.00 2.50 2.00 1.50 1.00 The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2017 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury _10yr TIPS 0.50 0.00 4 - -.T, Jun -16 Jul -16 Aug -16 Sep -16 Oct -16 Nov -16 Dec -16 Jan -17 Feb -17 Mar -17 Apr -17 May -17 Jun -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 9/30/2016 --�:-- 12/31 /2016 3/31/2017 6/30/2017 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 March 31, 2017 : $4499689312 Allocation Segments Market Value Asset Allocation Summary Total Fund As of June 30. 2017 Asset Allocation By Segment as of June 30, 2017 : $4699619141 Allocation Allocation Segments Market Value Allocation • Domestic Equity 23,378,673 52.0 ■ Domestic Equity 24,087,147 52.4 • International Equity 6,195,688 13.8 ■ International Equity 6,583,181 14.3 • Domestic Fixed Income 8,374,765 18.6 ■ Domestic Fixed Income 8,416,408 18.3 Other Fixed Income 1,359,521 3.0 Other Fixed Income 1,298,325 2.8 • Real Estate 4,863,891 10.8 ■ Real Estate 4,910,009 10.7 • Cash Equivalent 795,775 1.8 ■ Cash Equivalent 666,071 1.4 10 Allocation Asset Allocation By Manager as of March 31, 2017 : $4499689312 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2017 Asset Allocation By Manager as of June 30, 2017 : $4599619141 Market Value Allocation Vanguard Total Stock Market (VITSX) 23,378,673 52.0 Vanguard Total Stock Market (VITSX) 24,087,147 52.4 RBC Global (Voyageur) 6,195,688 13.8 RBC Global (Voyageur) 6,583,181 14.3 d Galliard Core Fixed Income 4,665,531 10.4 d Galliard Core Fixed Income 4,713,762 10.3 — Intercontinental 2,883,983 6.4 — Intercontinental 2,920,793 6.4 • American Core Realty Fund 2,003,854 4.5 ■ American Core Realty Fund 2,013,359 4.4 • Crescent Direct Lending Fund 1,512,461 3.4 Vanguard Inflation- Protected Secs (VAIPX) 1,378,846 3.0 Vanguard Inflation- Protected Secs (VAIPX) 1,385,676 3.1 ■ Crescent Direct Lending Fund 1,298,325 2.8 Galliard TIPS 1,227,188 2.7 Galliard TIPS 1,220,883 2.7 • Vanguard Short Term Bond Index (VSCSX) 1,100,148 2.4 ■ Vanguard Short Term Bond Index (VSCSX) 1,109,920 2.4 Receipt & Disbursement 615,111 1.4 Receipt & Disbursement 634,926 1.4 11 Asset Allocation vs. Target Allocation Total Fund As of June 30, 2017 Asset Allocation vs. Target Allocation Total Domestic Equity 2.4% Total International Equity -0.7% ■ Total Domestic Fixed Income 3.3% Total Global Fixed Income -5.0% Total Real Estate 0.7% Total Other Fixed Income -2.2% 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 24,087,147 52.4 50.0 Total International Equity 6,583,181 14.3 15.0 Total Domestic Fixed Income 8,423,410 18.3 15.0 Total Global Fixed Income - - 5.0 Total Real Estate 4,934,152 10.7 10.0 Total Other Fixed Income 1,298,325 2.8 5.0 Receipt & Disbursement 634,926 1.4 0.0 Total Fund 46,961,141 100.0 100.0 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 Jun -2017 26,944,044 64.63 30,670,328 66.73 24,087,147 62.41 24,087,147 52.41 6,683,181 14.32 6,583,181 14.32 9,721,736 21.16 8,423,410 18.33 4,713,762 10.26 1,220,883 2.66 1,109, 920 2.41 1,378,846 3.00 1,298,326 2.82 1,298,325 2.82 4,934,162 10.74 2,013,359 4.38 2,920,793 6.35 634,926 1.38 46,961,141 100.00 Mar -2017 26,944,044 64.63 29,674,360 66.77 23,378,673 61.99 23,378,673 51.99 6,196,688 13.78 6,195,688 13.78 9,891,004 22.00 8,378,643 18.63 4,665,531 10.38 1,227,188 2.73 1,100,148 2.45 1,385,676 3.08 1,612,461 3.36 1,512,461 3.36 4,887,837 10.87 2,003,854 4.46 2,883,983 6.41 616,111 1.37 44,968,312 100.00 13 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 Asset Allocation Asset Allocation History By Portfolio As of June 30, 2017 Sep -2016 431,060 1.03 41,692,898 100.00 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 2.6 - 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 Jun -2016 26,393,396 6 63.46 20,327,433 6 60.80 20,327,433 5 50.80 6,066,963 1 12.66 5,065,963 1 12.66 9,416,061 2 23.63 7,042,827 1 17.60 4,722,752 1 11.80 1,225,121 3 3.06 698,414 1.60 40,011,994 100.00 3 Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 L' _ 9/07 3/08 9/08 Domestic Equity Other Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To June 30, 2017 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 International Equity Domestic Fixed Income Global Fixed Income Real Estate Cash Equivalent 14 6/17 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of June 30, 2017 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 O 12.0 4.0 O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 52.41 (13) 14.32 (59) 18.33 (85) 0.00 2.82 (97) 10.74 (18) 1.38 (41) 5th Percentile 57.27 27.66 48.04 9.49 29.38 12.99 7.50 1 st Quartile 49.93 20.43 34.44 4.99 19.20 9.90 1.99 Median 44.22 15.19 28.30 4.61 12.54 7.60 1.10 3rd Quartile 35.58 12.13 21.44 3.29 5.45 4.98 0.60 95th Percentile 20.23 7.13 12.89 0.26 2.95 2.40 0.06 CJ 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2017 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 04/01/2017 Transfers Fees Expenses Deprec. 06/30/2017 Total Equity 29,574,360 14,503 - 14,503 -1,124 214,517 882,575 30,670,328 Total Domestic Equity 23,378,673 - - - 111,214 597,260 24,087,147 Vanguard Total Stock Market (VITSX) 23,378,673 - - - 111,214 597,260 24,087,147 Total International Equity 6,195,688 14,503 - 14,503 -1,124 103,303 285,315 6,583,181 RBC Global (Voyageur) 6,195,688 14,503 - 14,503 -1,124 103,303 285,315 6,583,181 Total Fixed Income 9,891,004 - 213,552 -584 -153 9,308 35,712 9,721,735 Total Domestic Fixed Income 8,378,543 584 -584 -153 9,308 35,712 8,423,410 Galliard Core Fixed Income 4,665,531 584 -584 - - 48,231 4,713,762 Galliard TIPS 1,227,188 - - -153 1,325 -7,478 1,220,883 Vanguard Short Term Bond Index (VSCSX) 1,100,148 - 6,211 3,561 1,109,920 Vanguard Inflation- Protected Secs (VAIPX) 1,385,676 - 1,772 -8,602 1,378,846 Total Other Fixed Income 1,512,461 - 214,136 - - 1,298,325 Crescent Direct Lending Fund 1,512,461 - 214,136 - - - 1,298,325 Total Real Estate 4,887,837 - 23,947 - 10,102 60,623 19,741 4,934,152 American Core Realty Fund 2,003,854 - 23,947 -5,552 29,695 9,309 2,013,359 Intercontinental 2,883,983 - - - -4,550 - 30,928 10,432 2,920,793 Receipt & Disbursement 615,111 222,995 487,480 - 675,086 - - 16,570 996 - 634,926 Total Fund Portfolio 44,968,312 - 487,480 - 675,086 - 25,190 - 17,847 285,444 938,028 45,961,141 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2016 To June 30, 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. 06/30/2017 Total Equity 26,944,044 41,074 -41,074 -3,037 520,097 3,209,224 30,670,328 Total Domestic Equity 21,225,417 - - - 354,619 2,507,111 24,087,147 Vanguard Total Stock Market (VITSX) 21,225,417 - - - 354,619 2,507,111 24,087,147 Total International Equity 5,718,627 41,074 -41,074 -3,037 165,478 702,113 6,583,181 RBC Global (Voyageur) 5,718,627 41,074 - 41,074 -3,037 165,478 702,113 6,583,181 Total Fixed Income 9,608,964 -49,613 -7,579 -2,685 78,662 93,986 9,721,735 Total Domestic Fixed Income 7,069,677 1,350,584 -7,358 -456 71,236 - 60,274 8,423,410 Galliard Core Fixed Income 4,736,754 584 -7,358 - - - 16,219 4,713,762 Galliard TIPS 1,232,715 - - -456 4,479 - 15,855 1,220,883 Vanguard Short Term Bond Index (VSCSX) 1,100,208 - - 17,726 -8,015 1,109,920 Vanguard Inflation- Protected Secs (VAIPX) - 1,350,000 - - 49,032 - 20,186 1,378,846 Total Other Fixed Income 1,395,062 - 158,945 -221 -2,229 - 64,658 1,298,325 Crescent Direct Lending Fund 1,395,062 - 158,945 -221 -2,229 - 64,658 1,298,325 Total Real Estate 4,708,831 - 71,982 - 54,752 - 170,484 181,571 4,934,152 American Core Realty Fund 1,994,730 - 71,982 - 16,563 88,729 18,445 2,013,359 Intercontinental 2,714,101 - - - 38,189 - 81,755 163,126 2,920,793 Receipt & Disbursement 431,060 80,521 2,169,156 - 1,991,157 - - 56,713 2,060 - 634,926 Total Fund Portfolio 41,692,898 - 2,169,156 - 1,991,157 - 103,405 - 62,435 771,303 3,484,781 45,961,141 17 3 Comparative Performance Trailling Returns Total Fund (Net) Total Fund Policy Total Fund (New Mgrs) (Net) Total Fund Policy Total Fund (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Fund (New Mgrs) (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Equity Total Equity Policy Total Domestic Equity Total Domestic Equity Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total International Equity MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Total Fixed Income Total Fixed Policy Total Domestic Fixed Income Total Domestic Fixed Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total Real Estate NCREIF Fund Index -ODCE (VVV) IM U.S. Open End Private Real Estate (SA +CF) Median Comparative Performance Trailing Returns Total Fund As of June 30, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception 2.67 14.58 6.60 10.91 5.82 2.80 9.10 12.92 6.45 10.26 2.67 9.83 14.58 6.60 10.91 5.77 2.80 9.10 12.92 6.45 10.26 6.42 2.73 (69) 10.09 (11) 14.92 (7) 6.94 (4) 11.33 (1) 6.45 2.80 (65) 9.10 (32) 12.92 (31) 6.45 (9) 10.26 (10) 5.52 2.97 8.52 12.13 5.36 8.94 5.87 2.73 (69) 10.09 (11) 14.92 (7) 6.94 (4) 11.33 (1) 6.30 2.80 (65) 9.10 (32) 12.92 (31) 6.45 (9) 10.26 (10) 6.42 2.97 8.52 12.13 5.36 8.94 5.51 3.71 13.84 jo 14.49 6.61 3.79 13.57 19.11 7.39 13.38 5.35 3.03 (44) 13.48 (49) 18.50 (41) 9.13 (53) 14.83 (42) 6.61 3.02 (45) 13.52 (48) 18.51 (41) 9.10 (53) 14.58 (48) 5.28 2.92 13.32 17.53 9.22 14.54 6.26 6.27 (49) 15.18 (33) 30.03 (4) 3.99 (24) 13.77 (6) 6.54 6.37 (47) 13.45 (58) 20.83 (58) 1.61 (63) 9.18 (57) 4.48 6.24 14.17 22.48 2.10 9.60 6.74 0.46 1.45 2.12 ' 2.50 2.54 4.96 0.92 -0.47 -0.16 1.87 4.73 0.54 (98) -0.15 (100) 0.23 (100) 2.00 (99) 1.88 (100) 4.77 0.92 (95) -0.47 (100) -0.16 (100) 2.01 (99) 1.87 (100) 4.73 2.92 13.32 17.53 9.22 14.54 6.26 1.65 (75) 7.57 (24) 10.80 (24) 12.40 (43) 13.20 (39) 5.71 1.71 (72) 5.70 (67) 7.88 (65) 11.35 (58) 11.79 (64) 4.97 1.91 6.06 8.31 11.81 12.39 4.85 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 18 Inception Date 11/01/2000 10/01/2007 (18) 11/01/2000 ( /�, (11) 10/01/2007 (8) 01/01/2001 (39) 11/01/2000 (91) (61) 11/01/2000 (99) ' 11/01/2000 (99) 11/01/2000 (99) (24) 10/01/2007 (42) Comparative Performance Trailing Returns Total Fund As of June 30, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 3.03 (38) 13.48 (36) 18.50 (42) 9.06 (13) N/A 13.55 (16) 03/01/2013 Vanguard Total Stock Market Index Hybrid 3.04 (38) 13.48 (36) 18.49 (43) 9.07 (13) 14.58 (22) 13.57 (15) IM U.S. Multi -Cap Core Equity (MF) Median 2.76 12.42 17.86 7.03 13.49 12.17 RBC Global (Voyageur) 6.27 (49) 15.18 (33) 30.03 (4) 3.99 (24) 13.77 (6) 4.08 (14) 11/01/2007 MSCI EAFE Index 6.37 (47) 13.45 (58) 20.83 (58) 1.61 (63) 9.18 (57) 0.92 (86) IM International Large Cap Value Equity (SA +CF) Median 6.24 14.17 22.48 2.10 9.60 2.02 Galliard Core Fixed Income 1.03 (45) -0.34 (85) -0.04 (77) 2.36 (31) 2.26 (42) 3.98 (70) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 0.92 (74) -0.47 (93) -0.16 (84) 2.01 (67) 1.87 (76) 3.85 IM U.S. Intermediate Duration (SA +CF) Median 1.02 -0.04 0.38 2.18 2.15 4.17 Galliard TIPS -0.50 (91) -0.92 (34) -0.30 (42) 0.46 (72) 0.38 (44) 3.22 (97) 10/01/2007 Blmbg. Barc. U.S. TIPS 1 -10 Year -0.40 (76) -0.83 (25) -0.26 (38) 0.35 (81) 0.28 (79) 3.28 (94) IM U.S. TIPS (SA +CF) Median -0.37 -1.43 -0.49 0.64 0.36 3.98 Vanguard Short Term Bond Index (VSCSX) 0.89 (15) 0.88 (29) 1.37 (30) N/A N/A 2.28 (16) 01/01/2015 Blmbg. Barc. U.S. Corporate 1 -5 Year Index 0.93 (12) 1.05 (19) 1.58 (24) 2.08 (7) 2.52 (10) 2.39 (11) IM U.S. Intermediate Investment Grade (MF) Median 0.69 0.39 0.78 1.36 1.45 1.56 American Core Realty Fund 1.97 (43) 5.53 (74) 7.46 (79) 10.67 (74) 11.19 (78) 4.66 (72) 10/01/2007 American Core Realty Policy 1.71 (71) 5.81 (57) 8.12 (59) 11.58 (53) 11.77 (69) 7.05 IM U.S. Open End Private Real Estate (SA +CF) Median 1.91 6.06 8.31 11.81 12.39 4.85 Intercontinental 1.43 (87) 9.06 (9) 13.30 (4) 13.48 (30) 14.32 (32) 14.48 (38) 10/01/2010 NCREIF Fund Index -ODCE 1.71 (72) 5.70 (67) 7.88 (65) 11.35 (58) 11.79 (64) 12.71 (72) IM U.S. Open End Private Real Estate (SA +CF) Median 1.91 6.06 8.31 11.81 12.39 13.35 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 7.19 Comparative Performance - IRR Inception 7.04 As of June 30, 2017 Inception Date 10/14/2014 Comparative Performance Fiscal Year Returns Total Fund As of June 30, 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) 9.83 (16) 0.33 (28) 11.86 (13) 16.72 (7) 18.96 (27) -1.17 (81) 10.67 (32) 0.70 (66) -16.84 (91) 13.03 (72) Total Fund Policy 9.10 (32) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (74) 0.33 (70) -12.11 (37) 11.97 (86) All Public Plans -Total Fund Median 8.52 8.52 -0.53 -0.53 10.15 12.50 17.96 0.29 9.94 17.96 1.59 -12.97 14.10 Total Fund (New Mgrs) (Net) 9.83 (15) 0.33 (28) 11.85 (13) 15.72 (7) 18.95 (27) -1.17 (81) 10.66 (32) 0.68 (65) -16.82 (91) N/A Total Fund Policy 9.10 (32) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (74) 0.33 (70) -12.11 (37) 11.97 (86) All Public Plans -Total Fund Median 8.52 0.55 -0.53 11.38 10.15 12.50 17.96 0.29 9.94 2.51 1.59 -12.97 14.10 Total Fund (Gross) 10.09 (11) 0.63 (23) 12.21 (8)' 16.33 (4) 19.81 (14) -0.46 (68) 11.40 (18) 1.43 (62) -16.48 (90) 13.92 (66) Total Fund Policy 9.10 (32) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (74) 0.33 (70) -12.11 (37) 11.97 (86) All Public Plans -Total Fund Median 8.52 -0.53 10.15 12.50 17.96 0.29 9.94 1.59 -12.97 14.10 Total Fund (New Mgrs) (Gross) 10.09 (11) 0.63 (23) 12.21 (8) 16.33 (4) 19.81 (14) -0.45 (68) 11.40 (18) 1.39 (53) -16.46 (90) N/A Total Fund Policy 9.10 (32) 0.55 (24) 11.38 (21) 15.00 (13) 19.61 (18) 2.51 (10) 9.13 (74) 0.33 (70) -12.11 (37) 11.97 (86) All Public Plans -Total Fund Median 8.52 -0.53 10.15 12.50 17.96 0.29 9.94 1.59 -12.97 14.10 Total Equity -1.62 IW 16.4 23.09 -4.68 18.62 Total Equity Policy 13.57 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 13.48 (49) -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 13.52 (48) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (58) 10.96 (31) -6.91 (64) -21.98 (68) 16.44 (60) IM U.S. Large Cap Core Equity (SA +CF) Median 13.32 0.03 19.25 20.61 29.70 1.16 9.50 -5.78 -20.45 16.96 Total International Equity 15.18 (33) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) MSCI EAFE Index 13.45 (58) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) -8.94 (55) 3.71 (66) 3.80 (65) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median 14.17 -9.36 5.59 22.94 15.39 -8.65 5.00 6.22 -27.37 23.87 Total Fixed Income 1.46 1.40 6.34, ' 4.67 9.27 ' 10.63 O� 4.96 Total Fixed Policy -C 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income -0.15 (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 -0.47 (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 13.32 0.03 26.51 20.61 29.70 1.16 9.50 -5.78 -20.45 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 -4.42 (95) -3.83 (50) -0.07 (96) -4.60 (82) N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -0.03 -3.84 3.41 -1.80 7.18 1.77 7.68 13.86 -1.37 7.50 Total Real Estate 7.67 (24) 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 5.70 (67) 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 6.06 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 June 30, 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 15.15 (42) 14.39 15.18 (33) 13.45 (58) 14.17 13.48 (36) 13.48 (36) 12.42 -0.34 (85) -0.47 (93) -0.04 -0.92 -0.83 N/A (29) N/A -6.03 N/A -21.19 (32) 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) 3.61 (15) 18.11 (28) 20.26 (58) 27.64 (37) 1.37 (2) 11.27 5.04 (13) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) 11.69 (15) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) -8.94 (55) 3.71 (66) -9.36 (72) 5.59 (70) 22.94 (68) 15.39 (77) -8.65 (35) 5.00 N/A -0.59 (34) 17.77 (30) N/A (70) N/A (69) N/A (66) N/A (41) -0.55 (33) 17.77 (30) 21.60 (59) 30.28 (15) 0.71 (23) 11.16 (30) -1.73 16.24 22.79 26.44 -1.71 9.57 17.85 3.04 (25) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (27) 9.63 (17) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (23) 7.52 (77) 2.70 (55) 2.88 (67) -0.27 (40) 5.57 (43) 3.60 (52) 8.26 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) -3.06 -20.28 11.87 (20) N/A 3.80 (65) -30.13 (72) 6.22 -27.37 N/A (29) N/A -6.03 (56) -21.19 (32) -5.50 -22.66 12.08 (38) -1.68 (95) 9.69 (81) 4.16 (36) 11.51 N/A 3.26 N/A 19.35 (56) 20.16 N/A 25.38 (39) 23.87 N/A 16.98 (45) 16.62 N/A 5.33 (69) 5.47 3.97 7.72 N/A 4.02 7.89 5.32 0.88 (29) N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.05 (19) 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) 0.39 1.21 1.64 -0.55 4.92 1.99 7.52 10.47 -0.18 4.27 5.53 (74) 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 5.81 (57) 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 6.06 15.54 12.90 13.22 12.90 16.62 6.39 -34.80 2.98 17.85 9.06 (9) 13.96 (68) 14.10 (31) 18.21 (10) 13.38 (43) 15.68 (73) N/A N/A N/A N/A 5.70 (67) 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) 6.06 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 18.00 (7) 0.63 (23) 12.21 (8) 16.33 16.00 (14) -0.45 (68) • Total Fund Policy 10.64 (19) 0.55 (24) 11.38 O (13) 19.61 (18) 2.51 14.00 Median 9.68 Dec -2015 -0.53 10.15 12.50 17.96 O 4.15 (5) Total Fund Policy 4.36 (57) 12.00 3.50 (47) 1.73 (63) 0.98 (54) 4.06 (6) 10.00 0.79 O 1.90 1.05 2.88 O E «' 8.00 O • 6.00 4.00 2.00 0.00 -2.00 • • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 2.73 (69) 10.09 (11) 14.92 (7) 8.18 (2) 6.94 (4) 9.87 (2) 11.33 (1) • Total Fund Policy 2.80 (65) 9.10 (32) 12.92 (31) 7.29 (10) 6.45 (9) 9.26 (9) 10.26 (10) Median 2.97 8.52 12.13 6.16 5.36 8.12 8.94 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 June 30. 2017 W ■ 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 (23) 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 9.68 Dec -2015 -0.53 10.15 12.50 17.96 0.29 4.15 (5) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Total Fund Portfolio 4.39 (54) 2.66 (3) 4.39 (9) 1.16 (92) 1.40 (29) 4.15 (5) Total Fund Policy 4.36 (57) 1.69 (15) 3.50 (47) 1.73 (63) 0.98 (54) 4.06 (6) All Public Plans -Total Fund Median 4.44 0.79 3.42 1.90 1.05 2.88 23 1:1� 3 Yr Rolling Under /Over Performance - 5 Years 20.0 e Over 0 - Performance 0 16.0 O `o O a 12.0 O c v c O a 8.0 A 0 4.0 � 4.0 8.0 12.0 Total Fund Policy ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 7.28 6.76 6.24 O «' 5.72 v Performance Review Total Fund Portfolio As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years y0.0 g eee000 888e ®sasses e O w 25.0 50.0 - `w a 75.0 Under w Performance ' 100.0 16.0 20.0 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 5.20 4.68 4.62 4.69 4.76 4.83 4.90 4.97 5.04 5.11 Risk (Standard Deviation %) Return Standard Deviation lb Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 11.85 11.06 10.27 O v 9.48 K 8.69 7.90 4.8 5.0 20(100%) 0 (0 %) 0 (0 %) 0 (0 %) 20(100%) 0 (0 %) 0 (0 %) 0 (0 %) 5.2 5.4 Risk (Standard Deviation %) Return Standard Deviation 5.6 • Total Fund Portfolio 6.94 4.94 • Total Fund Portfolio 11.33 5.47 O Total Fund Policy 6.45 4.69 O Total Fund Policy 10.26 5.01 Median 5.36 5.03 Median 8.94 5.16 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.87 107.69 108.46 0.23 0.55 1.36 1.04 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 1.13 110.01 108.46 0.32 0.90 1.99 1.07 2.14 Total Fund Policy 0.00 100.00 100.00 1.00 2.09 24 3 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 32.00 28.00 24.00 20.00 16.00 OO Z; 12.00 K 8.00 4.00 - 0.00 - -4.00 -8.00 • • �i 1 1 • • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 3.03 (38) 13.48 (36) 18.50 (42) 10.01 (12) 9.06 (13) 12.88 (14) N/A • VG Total Stock Mkt Hybrid 3.04 (38) 13.48 (36) 18.49 (43) 10.01 (12) 9.07 (13) 12.90 (14) 14.58 (22) Median 2.76 12.42 17.86 7.37 7.03 11.30 13.49 Comparative Performance 44.00 36.00 28.00 20.00 E v 12.00 K 4.00 -4.00 -12.00 ro Performance Review VG Total Stock Mkt (VITSX) As of June 30. 2017 9 h 0 -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 (34) 17.77 (30) N/A N/A N/A O VG Total Stock Mkt Hybrid 14.99 (13) -0.55 (33) 17.77 (30) ?1.60 (59) 30.28 (15) 0.71 (23) Median 11.47 -1.73 16.24 ?2.79 ?6.44 -1.71 25 uz� 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 VG Total Stock Mkt (VITSX) 5.79 (42) 4.12 (41) 4.42 (53) 2.67 (23) 0.95 (40) 6.26 (15) VG Total Stock Mkt Hybrid 5.79 (42) 4.11 (41) 4.41 (54) 2.69 (22) 0.95 (39) 6.25 (16) IM U.S. Multi -Cap Core Equity (MF) Median 5.52 3.60 4.48 1.45 0.39 4.90 25 uz� 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 9.38 Ce is 8.71 8.04 v 7.37 Under Performance I 11.0 12.0 6.70 1 1 1 10.38 10.44 10.50 10.56 10.62 10.68 10.74 10.80 Risk (Standard Deviation %) Return Standard Deviation Performance Review VG Total Stock Mkt (VITSX) As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 9.06 10.47 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid O 00 O 10.46 25.0 O 14.58 9.70 v c 00 0 0 O o Q Median v U `w 50.0 - 10.09 Historical Statistics - 3 Years a 75.0 v K Tracking Up Down Information Sharpe 100.0 Downside Error Market Market Alpha 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 Capture 5 -25 25- Median Median -75 75 -95 Total Period VG Total Stock Mkt (VITSX) 0.03 99.98 100.02 -0.02 -0.19 Count Count Count Count lb VG Total Stock Mkt (VITSX) 6 O VG Total Stock Mkt Hybrid 20 Peer Group Scatterg ram - 5 Years 14.76 O 14.40 14.04 v 13.68 13.32 9.63 9.72 5 (83 %) 1 (17 %) 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) 0 (0 %) 0 (0 %) 9.81 9.90 9.99 Risk (Standard Deviation %) Return 10.08 Standard Deviation 10.17 • VG Total Stock Mkt (VITSX) 9.06 10.47 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 9.07 10.46 O VG Total Stock Mkt Hybrid 14.58 9.70 Median 7.03 10.72 Median 13.49 10.09 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) 0.03 99.98 100.02 -0.02 -0.19 0.87 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 5.05 o uz� Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 40.00 35.00 30.00 O 25.00 QTR 20.00 1 YR 15.00 v O K Q 10.00 - 5.00 30.03 (4) 0.00 3.99 (24) -5.00 -10.00 L • i I Comparative Performance 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 June 30. 2017 O O O C' • -28.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global (Voyageur) 6.27 (49) 15.18 (33) 30.03 (4) 7.01 (23) 3.99 (24) 9.96 (10) 13.77 (6) • MSCI EAFE Index 6.37 (47) 13.45 (58) 20.83 (58) 4.44 (57) 1.61 (63) 6.82 (59) 9.18 (57) Median 6.24 14.17 22.48 5.09 2.10 7.19 9.60 Comparative Performance 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 June 30. 2017 O O O C' • -28.00 1 Qtr 1 Qtr J Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To To To Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 • RBC Global (Voyageur) 10.74 (27) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) • MSCI EAFE Index 7.06 (61) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) -8.94 (55) Median 8.35 -9.36 5.59 22.94 15.39 -8.65 27 1:1� 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 RBC Global (Voyageur) 7.47 (60) 0.85 (36) 12.90 (2) -5.53 (98) -0.69 (39) 4.56 (33) MSCI EAFE Index 7.39 (63) -0.68 (58) 6.50 (58) -1.19 (45) -2.88 (77) 4.75 (27) IM International Large Cap Value Equity (SA +CF) Median 7.70 -0.31 7.01 -1.41 -1.66 3.78 27 1:1� 3 Yr Rolling Under /Over Performance - 5 Years 32.0 Over Performance 24.0 v � 0 16.0 • dD n 8.0 0 0 0 U 0.0 m K 8.0 1 1 -8.0 0.0 8.0 16.0 MSCI EAFE Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 4.68 3.90 3.12 «' 2.34 v 1.56 O 0.78 9.72 10.26 10.80 11.34 11.88 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years 3.99 12.97 O RBC Global (Voyageur) 13.77 y 0.0 •• 0 0000000 0 0 O 9.18 10.42 O 2.10 11.08 0 Median O v 25.0 Historical Statistics - 3 Years O O O 50.0- 0000000000000 Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio EL Risk Capture Capture O 00 O 75.0 RBC Global (Voyageur) 4.89 107.75 93.84 2.49 0.49 0.35 r v K 8.60 MSCI EAFE Index 100.00 - 1.00 100.0 Historical Statistics - 5 Years Under Tracking Up Down Information Sharpe Performance 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 1 Risk Capture Capture 24.0 32.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count N 12.42 12.96 Standard Deviation 13.50 0 RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 16.00 14.00 12.00 v 10.00 8.00 10.08 10.56 18 (90 %) 2 (10 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 9 11.04 11.52 12.00 12.48 Risk (Standard Deviation %) Return Standard Deviation 12.96 • RBC Global (Voyageur) 3.99 12.97 O RBC Global (Voyageur) 13.77 12.45 O MSCI EAFE Index 1.61 10.68 O MSCI EAFE Index 9.18 10.42 Median 2.10 11.08 Median 9.60 10.59 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.89 107.75 93.84 2.49 0.49 0.35 0.98 8.60 MSCI EAFE Index 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) 5.02 112.69 87.71 4.66 0.84 1.10 0.97 7.06 MSCI EAFE Index 100.00 100.00 1.00 6.90 28 3 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 4.94 12.00 4.28 10.00 3.62 8.00 2.96 O 6.00 2.30 c c ' 1.64 ' 4.00 v v 0.98 � . 2.00 0.32 0.00 -0.34 C' � O -2.00 -1.00 Performance Review Galliard Core Fixed Inc As of June 30. 2017 -1.66 -4.00 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 • Galliard Core Fixed Inc 1.03 (45) -0.34 (85) -0.04 (77) 2.51 (36) 2.36 (31) 2.68 (35) 2.26 (42) • Galliard Core Fixed Inc 4.36 (26) 3.04 (25) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (27) • Barclays Int Agg Index 0.92 (74) -0.47 (93) -0.16 (84) 2.08 (78) 2.01 (67) 2.38 (63) 1.87 (76) • Barclays Int Agg Index 3.57 (72) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (23) Median 1.02 -0.04 0.38 2.40 2.18 2.52 2.15 Median 3.91 2.70 2.88 -0.27 5.57 3.60 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Galliard Core Fixed Inc 0.78 (61) -2.12 (89) 0.30 (60) 1.77 (34) 2.54 (22) -0.29 (27) Barclays Int Agg Index 0.68 (81) -2.05 (80) 0.31 (59) 1.44 (73) 2.31 (55) -0.51 (65) IM U.S. Intermediate Duration (SA +CF) Median 0.81 -1.84 0.38 1.58 2.33 -0.42 ORA 3 3 Yr Rolling Under /Over Performance - 5 Years 8.0 2.36 Over • Galliard Core Fixed Inc '-' Performance U 6.0 v w • Barclays Int Agg Index X LL w 4.0 2.23 o co W U a 2.0 Median A C7 2.24 0.0 Median 0.0 2.0 4.0 2.20 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.60 is 2.40 Up Down E 2.20 Sharpe Downside Error Market Market v 2.00 Ratio Ratio Beta 1.80 Capture 1 1 2.19 2.22 2.25 2.28 2.31 Risk (Standard Deviation %) Return Performance Review Galliard Core Fixed Inc As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 A 25.0 0 0 0 0 0 0 0 0 50.0- • O O O O O O 00 p 0 O e 75.0 00 O K Under 100.0 1 T` -i r mo Performance 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 1 6.0 8.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count A 2.34 2.37 Standard Deviation 2.40 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 2.40 is 2.20 2.00 O 1.80 2.12 2.16 2 (10 %) 18 (90 %) 0 (0 %) 0 (0 %) 0 (0 %) 1 (5 %) 11 (55 %) 8 (40 %) 2.20 2.24 2.28 2.32 Risk (Standard Deviation %) Return Standard Deviation 2.36 • Galliard Core Fixed Inc 2.36 2.36 • Galliard Core Fixed Inc 2.26 2.32 • Barclays Int Agg Index 2.01 2.23 • Barclays Int Agg Index 1.87 2.16 Median 2.18 2.24 Median 2.15 2.20 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.33 107.99 97.13 0.26 1.05 1.02 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 0.34 109.25 98.40 0.30 1.11 0.98 1.04 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) 3.50 2.81 2.12 1.43 0.74 c ' 0.05 v K -0.64 -1.33 -2.02 -2.71 -3.40 17.00 14.00 11.00 00 8.00 5.00 00 c ' 2.00 v K -1.00 - -4.00 - -7.00 - -10.00 -13.00 i Performance Review Galliard TIPS As of June 30. 2017 5 ca 3 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 -0.50 (91) -0.92 (34) -0.30 (42) 1.57 (78) 0.46 (72) 1.23 (77) 0.38 (44) • Galliard TIPS 4.75 (95) -0.38 (19) 0.59 (86) -3.71 (9) 6.01 (98) 6.73 (96) • Barclays US TIPS 1 -10 Yr -0.40 (76) -0.83 (25) -0.26 (38) 1.52 (88) 0.35 (81) 1.15 (88) 0.28 (79) • Barclays US TIPS 1 -10 Yr 4.83 (95) -0.82 (53) 0.61 (81) -3.90 (17) 6.32 (92) 7.19 (85) Median -0.37 -1.43 -0.49 1.83 0.64 1.58 0.36 Median 6.53 -0.80 1.56 -5.73 9.02 9.54 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Galliard TIPS 1.42 (23) -1.82 (33) 0.63 (84) 1.33 (83) 3.64 (71) -0.88 (98) Barclays US TIPS 1 -10 Yr 1.05 (88) -1.47 (14) 0.57 (96) 1.32 (85) 3.60 (77) -0.70 (81) IM U.S. TIPS (SA +CF) Median 1.27 -2.35 0.99 1.69 4.32 -0.64 ca 3 3 Yr Rolling Under /Over Performance - 5 Years 0.0 9.0 3.21 Over • Galliard TIPS V6.0 - Performance a 3.0 - O Barclays US TIPS 1 -10 Yr v � 0.0 - °8 70 0 -3.0 - Under w Performance -6.0 1 1 -6.0 -3.0 0.0 3.0 6.0 9.0 Barclays US TIPS 1 -10 Yr ( %) v • Over Performance • Under Performance Median Earliest Date X Latest Date ° Peer Group Scatterg ram - 3 Years J 0.70 0.60 0.50 • ° «' 0.40 O 00 0.30 Down 0.20 1 ° 8 2.80 3.00 3.20 3.40 3.60 3.80 Risk (Standard Deviation %) e Return Standard Market Deviation Performance Review Galliard TIPS As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 3.21 • Galliard TIPS 0.38 3.94 O Barclays US TIPS 1 -10 Yr 0.35 °8 2.95 w 25.0 3.80 ° ° ° v 50.0 -� Median 0.36 ° 4.79 J EL ° 75.0 00 ° Down 00 ° 8 Sharpe 8 8 8 °° 8 e Q e Error Market Market Alpha 100.0 Ratio Beta Risk TY Capture 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 Galliard TIPS 0.53 99.70 5 -25 25- Median Median -75 75 -95 1.04 1.93 Total Period 100.00 100.00 0.00 1.00 Count Count Count Count 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 0.40 O is 0.36 0.32 v 0.28 O 1 3.61 3.80 3.99 2 (10 %) 2 (10 %) 5 (25 %) 11 (55 %) 2 (10 %) 0 (0 %) 2 (10 %) 16 (80 %) 1 1 1 4.18 4.37 4.56 4.75 4.94 Risk (Standard Deviation %) Return Standard Deviation 5.13 • Galliard TIPS 0.46 3.21 • Galliard TIPS 0.38 3.94 O Barclays US TIPS 1 -10 Yr 0.35 2.95 • Barclays US TIPS 1 -10 Yr 0.28 3.80 Median 0.64 3.66 Median 0.36 4.79 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.53 99.70 96.51 0.10 0.22 0.10 1.04 1.93 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.84 99.19 96.57 0.10 0.13 0.08 1.03 2.49 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 32 uz� Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 4.31 3.70 3.09 2.48 1.87 E ' 1.26 v K 0.65 0.04 -0.57 -1.18 -1.79 • H j I 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 June 30. 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) 0.89 (15) 0.88 (29) 1.37 (30) 2.44 (13) N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 0.93 (12) 1.05 (19) 1.58 (24) 2.48 (11) 2.08 (7) 2.51 (7) 2.52 (10) Median 0.69 0.39 0.78 1.64 1.36 1.66 1.45 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 June 30. 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 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 VG ST Bond Index (VSCSX) 0.75 (39) -0.75 (32) 0.48 (42) 1.32 (42) 1.75 (33) -0.18 (5) Barclays US Corp 1 -5 Yr Index 0.94 (14) -0.81 (35) 0.52 (36) 1.39 (30) 1.76 (33) -0.37 (21) IM U.S. Intermediate Investment Grade (MF) Median 0.70 -1.00 0.41 1.23 1.61 -0.56 33 3 Performance Review American Core RE As of June 30. 2017 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) QTR 23.00 1 YR 2 YR 3 YR 4 YR 32.00 20.00 1.97 (43) 5.53 (74) 7.46 (79) 29.00 10.67 (74) 11.14 (78) 11.19 (78) • American Core RE Policy 1.71 (71) 26.00 17.00 10.14 (64) 11.58 (53) 11.76 (62) 11.77 (69) Median 1.91 6.06 8.31 10.41 23.00 12.39 14.00 3.43 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 1.69 2.24 2.13 2.50 2.65 3.57 20.00 11.00 E O E r r 17.00 O 8.00 0 14.00 5.00 - 11.00 2.00 8.00 -1.00 -4.00 1 Comparative Performance 5.00 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) O American Core RE Policy 10.62 (68) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.14 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 1.97 (43) 5.53 (74) 7.46 (79) 9.04 (90) 10.67 (74) 11.14 (78) 11.19 (78) • American Core RE Policy 1.71 (71) 5.81 (57) 8.12 (59) 10.14 (64) 11.58 (53) 11.76 (62) 11.77 (69) Median 1.91 6.06 8.31 10.41 11.81 12.30 12.39 Comparative Performance 5.00 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) O American Core RE Policy 10.62 (68) 14.71 (64) 12.39 (70) 12.47 (69) 11.77 (66) 18.03 (41) Median 11.14 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 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 American Core RE 2.27 (31) 1.20 (81) 1.83 (70) 1.26 (94) 2.63 (54) 3.03 (78) American Core RE Policy 1.83 (48) 2.16 (56) 2.18 (48) 2.18 (60) 2.44 (62) 3.43 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 1.69 2.24 2.13 2.50 2.65 3.57 34 3 3 Yr Rolling Under /Over Performance - 5 Years 16.0 Over Performance w 14.0 K v • tj 12.0 • x w 10.0 E 8.0 8.0 10.0 12.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 12.16 is 11.78 O 11.40 «' 11.02 v K 10.64 10.26 1 1.40 1.50 1.60 Performance Review American Core RE As of June 30. 2017 3 Yr Rolling Percentile Ranking - 5 Years 10.67 1.96 • American Core RE y 0.0 1.61 O American Core RE Policy 11.58 1.48 A K 11.77 1.27 Median 11.81 1.92 w 25.0 12.39 1.80 Historical Statistics - 3 Years v 50.0 - O EL 75.0 e 8 8 8® O e e 8 8 O O Q O O Error Market Market Alpha Q e Ratio Beta Risk v Capture Capture 00 O 100.0 1.24 92.56 N/A -1.13 -0.67 5.00 Under 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 Performance 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 I 14.0 16.0 5 -25 25- Median Median -75 75 -95 Down Total Period Count Count Count Count 9 1 1 1.70 1.80 1.90 2.00 Risk (Standard Deviation %) Return Standard Deviation 2.10 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 12.80 12.40 12.00 «' 11.60 O v K 11.20 10.80 1.00 1.20 0 (0 %) 0 (0 %) 7 (35 %) 13 (65 %) 0 (0 %) 0 (0 %) 17 (85 %) 3 (15 %) O 1.40 1.60 Risk (Standard Deviation %) Return 1.80 2.00 Standard Deviation • American Core RE 10.67 1.96 • American Core RE 11.19 1.61 O American Core RE Policy 11.58 1.48 • American Core RE Policy 11.77 1.27 Median 11.81 1.92 Median 12.39 1.80 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.24 92.56 N/A -1.13 -0.67 5.00 1.03 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 1.06 95.25 N/A -0.02 -0.50 6.38 0.95 0.00 American Core RE Policy 0.00 100.00 N/A 1.00 0.00 35 3 Performance Review Intercontinental As of June 30. 2017 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 32.00 20.00 29.00 26.00 17.00 23.00 14.00 O p 20.00 11.00 c c O O 17.00 8.00 14.00 • 5.00 - 11.00 2.00 - 8.00 -1.00 - 5.00 -4.00 2.00 uz� Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 • Intercontinental 1.43 (87) 9.06 (9) 13.30 (4) 13.18 (25) 13.48 (30) 13.60 (33) 14.32 (32) • Intercontinental 13.30 (24) 13.96 (68) 14.10 (31) 18.21 (10) 13.38 (43) 15.68 (73) • NCREIF Fund Index 1.70 (72) 5.69 (69) 7.87 (66) 9.83 (67) 11.34 (58) 11.69 (63) 11.79 (64) • NCREIF Fund Index 10.08 (79) 14.93 (63) 12.40 (70) 13.04 (55) 11.61 (67) 18.27 (40) Median 1.91 6.06 8.31 10.41 11.81 12.30 12.39 Median 11.14 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 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Mar -2016 Dec -2015 Intercontinental 1.71 (50) 5.71 (1) 3.88 (4) 1.87 (80) 1.15 (97) 5.84 (4) NCREIF Fund Index 1.77 (49) 2.11 (59) 2.07 (57) 2.13 (63) 2.18 (66) 3.34 (63) IM U.S. Open End Private Real Estate (SA +CF) Median 1.69 2.24 2.13 2.50 2.65 3.57 uz� 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over r. Performance °-�- 16.0 oo b 0 0 c u p O v y 14.0 X 00 0 O c O P 12.0 10.0 � 1 10.0 12.0 14.0 16.0 NCREIF Fund Index ( %) • Over Performance + Earliest Date X Latest Date Performance Review Intercontinental As of June 30. 2017 Peer Group Scatterg ram - 3 Years 14.40 13.68 - O 12.96 «' 12.24 v K 11.52 O 10.80 1.44 1.80 2.16 2.52 2.88 3.24 3.60 Risk (Standard Deviation %) Return Standard Deviation 3.96 lb Intercontinental 16 • NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 14.96 14.08 13.20 «' 12.32 11.44 0 10.56 1 0.72 1.08 1.44 3 (19 %) 12 (75 %) 1 (6 %) 0 (0 %) 0 (0 %) 1 (5 %) 18 (90 %) 1 (5 %) L_J 1 1 1.80 2.16 2.52 2.88 3.24 Risk (Standard Deviation %) Return Standard Deviation 3.60 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 3.33 • Intercontinental 14.32 3.19 / y 0.0 O NCREIF Fund Index 11.79 1.35 Median 11.81 1.92 v 25.0 00 00 00 00 00 0 Tracking Up Down Information 0 O 0 Downside Error Market Market 50.0 -0 0 0 Ratio Ratio Beta Risk 0 Capture Capture 000000000 Intercontinental 3.13 118.36 N/A 4.47 0.64 3.75 0.78 0.00 e 75.0- N/A 0.00 N/A 0 0000000 0.00 Historical Statistics - 5 Years v K Tracking Up Down Information Sharpe 100.0 Error Market Market Alpha Ratio Ratio Beta Risk Under Capture 1 1 1 1 1 1 1 1 Performance 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 6/17 18.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count Peer Group Scatterg ram - 3 Years 14.40 13.68 - O 12.96 «' 12.24 v K 11.52 O 10.80 1.44 1.80 2.16 2.52 2.88 3.24 3.60 Risk (Standard Deviation %) Return Standard Deviation 3.96 lb Intercontinental 16 • NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 14.96 14.08 13.20 «' 12.32 11.44 0 10.56 1 0.72 1.08 1.44 3 (19 %) 12 (75 %) 1 (6 %) 0 (0 %) 0 (0 %) 1 (5 %) 18 (90 %) 1 (5 %) L_J 1 1 1.80 2.16 2.52 2.88 3.24 Risk (Standard Deviation %) Return Standard Deviation 3.60 • Intercontinental 13.48 3.33 • Intercontinental 14.32 3.19 • NCREIF Fund Index 11.34 1.52 O NCREIF Fund Index 11.79 1.35 Median 11.81 1.92 Median 12.39 1.80 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.13 118.36 N/A 4.47 0.64 3.75 0.78 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 3.07 120.76 N/A 5.67 0.77 4.18 0.72 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 37 3 Private Equity Fund Overview Crescent Direct Lending Fund As of June 30, 2017 Fund Information Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower- middle- market companies. The Fund will seek to enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Capital Committed: Capital Invested: Management Fees: Expenses: Interest: Total Contributions: Remaining Capital Commitment Total Distributions: Market Value: Inception Date: Inception IRR: TVPI: $2,000,000 $2,509,613 $913 $83,194 $2,509,613 $699,244 $1,401,601 $1,298,325 10/14/2014 7.0 1.1 Cash Flow Analysis $3,380,000.0 $2,704,000.0 $2,028,000.0 $1,352,000.0 $676,000.0 $0.0 ($676,000.0) 10/14 1/15 4/15 7/15 10/15 1/16 4/16 7/16 10/16 1/17 4/17 7/17 38 Net Asset Value Distribution Contributions 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 June 30, 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 June 30, 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: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. — 0.41 of bonds is rated BB, since this is below the threshold of 1. marked in compliance Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down - market capture ratio less than the index. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down - market capture ratio less than the index. 40 Vanguard Total RBC Global Gaillard Yes No NIA Yes No NIA Yes No NIA Yes American RE Intercontinental Yes No NIA Yes No NIA Yes ✓ ✓ Yes No NIA Yes No NIA TIPS VG Short BD No NIA No NIA Yes No NIA Winter Springs General Employees General Plan and Trust Fee Analysis As of June 30, 2017 Receipt & Disbursement 634,926 - Total Fund 0.35 45,961,141 160,305 41 3 Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 24,087,147 9,635 0.04 % of Assets Total Domestic Equity 0.04 24,087,147 9,636 RBC Global (Voyageur) 0.95 6,583,181 62,540 0.95 % of Assets Total International Equity 0.96 6,683,181 62,640 Galliard Core Fixed Income 0.25 4,713,762 11,784 0.25 % of Assets Galliard TIPS 0.15 1,220,883 1,831 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,109,920 1,332 0.12 % of Assets Total Domestic Fixed Income 0.19 8,423,410 16,326 Crescent Direct Lending Fund 1.35 1,298,325 17,527 1.35 % of Assets Total Other Fixed Income 1.36 1,298,326 17,627 Intercontinental 1.10 2,920,793 32,129 1.10 % of Assets American Core Realty Fund 1.10 2,013,359 22,147 1.10 % of Assets Total Real Estate 1.10 4,934,162 64,276 Receipt & Disbursement 634,926 - Total Fund 0.35 45,961,141 160,305 41 3 Disclosures Total Fund As of June 30, 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. L 11 AndCo Consulting 1 (844) 44 -ANDCO I AndCo Consulting. com r; T