The URL can be used to link to this page

Home My WebLink About2018 02 20 Regular 502 Quarterly Investment Performance ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 502 February 20, 2018 Regular Meeting REQUEST: Informational Consent Public Hearings Regular X Mgr. / Authorization Dept. The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From AndCo Consulting The First Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (48 Pages) Investment Performance Review Period Ending December 31, 2017 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom As we embark on a New Year together we first wanted to say, "Thank you" to our clients for giving us the opportunity to work with you. Our mission is to represent the sole interests of our clients by redefining independence. This mission means everything to us. We want to demonstrate this mission every day by maintaining your trust in an evolving financial world. We are extremely grateful to be your consultant and will continue to work tirelessly to uphold your trust and confidence. As we enter 2018, AndCo has never been stronger and more committed to delivering high quality service. We are 87 people strong, all collectively striving to serve our clients each day. Since most clients do not have the opportunity to interact with our entire firm, we have attached a page which outlines our current organizational structure and illustrates our continued reinvestment in professionals to better serve you. Our steadfast focus on one line of business, general consulting, will remain our singular focus going forward. Each January, we hold a Firmwide retreat to discuss the previous year's successes and challenges, as well as outline our Strategic plan, including reinforcement of our Mission, Vision and Values. It's a great time for our employees to spend time together and get a better understanding of where the company is going, why we're headed in that direction, and more importantly, the critical role they each play in making it a success. Starting last year, along with this strategic review, we also started the process of announcing new partners at the firm. Since the firm was founded in 2000 by Joe Bogdahn, its foundational goal was to make the firm a multigenerational organization led by the employees. That succession plan was put into place in 2015 and last January we announced 6 new partners — Donna Sullivan, David Ray, Jason Purdy, Bryan Bakardjiev, Steve Gordon and Troy Brown. This year, we added one new partner — Dan Johnson. Dan has been with the firm for almost 10 years and has worked tirelessly serving his clients and evolving the firm in multiple areas. Dan believes in what we are doing and the value of the independent service model. Dan has continuously demonstrated his willingness to drop everything to help others and help the firm better serve our clients, each other, and the community. As a testament to his contributions, when his name was announced Dan received a standing ovation from his peers. We are honored to have Dan at our firm and part of our ownership team. AndCo Firm Update At AndCo, we believe in order to continue growing over time, and align interests of all employees, we must continue to recycle equity opportunities back into the organization. This belief embodies our commitment to remain employee owned and managed, as well as reward those team members that have helped make the company what it is today and what it will be going forward. This shared belief also ensures legacy partners will eventually transfer their units to new members. As such, since Joe initially transferred units back to the firm, I have granted units to new members. I am also happy to acknowledge Dave West as the most recent 1st generation partner to voluntarily recycle his ownership units back into the company. Dave was one of our initial partners and was an instrumental collaborator in the development of the early philosophies and deliverables of the organization. Dave will continue to support the firm by serving our clients with the same passion and enthusiasm into the future as one of our most tenured senior consultants. So, this New Year we want to say "Thank you" twice: once to you, our valued clients, and once to Dave West for his support, belief and understanding of the AndCo way. We embark on 2018 stronger than ever thanks to your trust, people like Dave, and the rest of our tremendous, growing team. On behalf of everyone at AndCo, thank you for your partnership. 41, )�a Mike Welker, CFA° President/CEO Mike Welker, CFA President/CEO Bryan Bakardjiev,CFA Executive Director Troy Brown, CFA Executive Director Steve Gordon Executive Director Kim Spurlin, CPA Executive Director Jacob Peacock Director of Retirement Solutions Joe Carter Al DiCristofaro Amy Heyel Paul Murray Matt DeConcini, Esq. Chief Compliance Officer Sara Searle Compliance Officer 087 EMPLOYEES Jack Evatt Director of Consulting Dan Johnson Director of Consulting Doug Anderson Annette Bidart Mike Bostler Jon Breth,CFP Christiaan J. Brokaw, CFA PeterBrown Jennifer Brozstek Mike Fleiner Michael Holycross, CIMA Jennifer Gainfort, CFA Brian Green Tyler Grumbles,CFA,CIPM Ian Jones Tony Kay Brian King Jeff Kuchta, CFA Chris Kuhn, CFA, CAIA Justin Lauver, Esq. John McCann, CIMA John Mellinger David Ray Director of Client Solutions Kim Hummel Misha Bell Mary Ann Johnson Zach Chichinski, CFA, CIPM Rosemarie Kieskowski Jose Christiansen Yoon Lee -Choi Amy Foster Annie Lopez Nicole Hampton Grace Niebrzvdowski Matt DeConcini, Esq. Chief Compliance Officer (Moderator) Jack Evatt Director/Senior Consultant Jeff Gabrione, CFA Director of Research Dan Johnson Director/Senior Consultant Tim Nash Mary Nye T. Christopher Pipich, CFA Howard Pohl Kerry Richardville, CFA James Ross John Thinnes, CFA, CAIA Brendon M. Vavrica, CFP Tim Walters Greg Weaver Dave West, CFA Beth Porzelt Jeff Pruniski Albert Sauerland Donna Sullivan Brooke Wilson Ian Jones Senior Consultant Jacob Peacock Director of Retirement Solutions RESEARCH Jeff Gabrione, CFA Director of Research - Alternatives Julie Baker, CFA International Brad Hess, CFA Domestic Steve Jones, CFA Head of Asset Strategies TimKominiarek, CAIA Head of RealAsset Kevin Laake, CFA Domestic Rachel Brignoni,CLSC Director of Human Resources Jason Purdy Director of IT Jamie Utt IT Systems Administrator Jerry Camel Director of Software Development Tim Linger Software Developer Brandie Rivera Controller 9 2A°GR ESE°*fififitfiffififffififtififift 20CFAH000000000 6CAIA 3 CPM AndCo Firm Update Rob Mills, CAIA Real Estate Kadmiel Onodje, CAIA Asset Strategies Dan Osika, CFA Asset Strategies Philip Schmitt, CIMA Head of Fixed Income Evan Scussel, CFA, CAIA Head of Equity Matthew Ogren Associate Derek Tangeman, CFP, CIMA Director of Marketing Kim Goodearl Head of RFPTeam TalaChin Marketing Analyst John Rodak,CIPM Head of Client On -Boarding Meghan Haines Client On -Boarding Associate Bonnie Burgess Office Administrator S71�Y3 Market returns were positive across major equity and fixed income indices for the 41h quarter and calendar year 2017. Broad domestic and international equity markets continued their year long trend of strong positive performance. Fixed income indices also posted positive results, but equities outpaced fixed income investments for both the quarter and 1 -year period as improving macroeconomic data and robust corporate earnings worldwide fostered investor optimism in the continued global economic recovery. The US stock market represented by the Russell 3000 Index returned 6.3% and 21.1% for the quarter and calendar year respectively. While the Russell 3000 outperformed the international MSCI ACWI ex US Index during the 41h quarter, international stocks were the best performers of 2017. Domestic equity indices pushed higher as most measures continued to show continued signs of a healthy US economy. Future prospects for lower corporate and individual tax rates following the passage of a republican party led tax code overhaul in December also boosted returns through the period. International equity market benchmarks posted considerable gains for both the 41h quarter and year-to-date period with the MSCI ACWI ex US returning 5.0% and 27.2% respectively. Emerging market stocks outpaced both international developed and US equities over both periods with the MSCI Emerging Markets Index returning 7.4% through the quarter and an impressive 37.3% for the calendar year. While developed market international index returns were weaker by comparison, they still posted solid gains with the MSCI EAFE Index returning 25.0% for the 1 -year period outpacing major domestic indices. International equities benefitted from continued strength in global fundamental data, a weakening U.S. Dollar (USD) and generally accommodative global central bank policies. This positive trend in economic fundamentals led some global central banks to begin normalizing monetary policy with both the European Central Bank (ECB) and the Bank of England (BoE) taking action during the 41h quarter. Many international markets also saw their returns influenced, both positively and negatively, by ongoing political developments throughout the quarter. During the 41h quarter, interest rates on the US Treasury Yield Curve rose for short-term maturities, but fell for long-term maturities causing further flattening of the yield curve. The jump in interest rates on the short end of the curve was partially due to increasing investor expectations for a US Federal Reserve (Fed) interest rate hike, which materialized in December. Despite the increase in short-term rates, broad fixed income indices posted modestly positive results with the bellwether Bloomberg Barclays U.S. Aggregate Index returning 0.4% for the quarter and 3.5% for the year. Corporate credit continued its trend of outperformance relative to other investment grade sectors through 2017 as it benefitted from the further tightening of credit spreads relative to Treasuries. 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 December 31, 2017 Quarter Performance 0.0% 2.0% 4.0% 6.0% 8.0% 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 Source: Investment Metrics 4 3 -Month T -Bill 1 -Year Performance 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% US equity index returns were solidly positive across the style and capitalization spectrum for the 41h quarter and trailing 1 -year period. Throughout 2017, there was only one instance of a negative quarterly return being posted by the Russell market cap and style indices, which was a -0.13% return by the Russell 2000 Value Index during 1Q 2017. Quarterly results benefitted from the passage of republican party tax reforms that represented the first major restructuring of the US Tax code since 1986. Investors cheered the reductions to both individual and corporate income tax rates. In particular, the reduction of the corporate tax rate from 35% to 21%, all else equal, should act as a tailwind to corporate earnings and therefore future investment returns. Furthermore, as seen through much of 2017, encouraging economic data continued to facilitate gains in U.S. equity markets as positive trends in GDP, consumer and business sentiment, corporate earnings and employment continued throughout the period. During the quarter, large cap stocks outperformed mid and small cap equities. The large cap Russell 1000 Index returned 6.6% during the period, double the 3.3% return posted by the small cap Russell 2000 Index. Calendar year results echo the 4th quarter's with the Russell 1000 gaining 21.7% versus a 14.6% increase for the Russell 2000. This trend of large cap outperformance can be partially explained by their greater to exposure to foreign markets relative to small cap companies. This can be especially beneficial during periods of USD weakness, such as that experienced over the last year, which is typically favorable to exporters and foreign sales. Large cap companies as a whole generate more revenue outside of the US which can expose them to faster growing markets, foreign tax benefits or strengthening foreign currencies. Growth indices outperformed value indices across the market cap spectrum for the fourth straight quarter. Performance for growth indices more than doubled value index performance for each respective cap segment with all market cap growth indices posting returns greater than 20% during 2017. Growth benchmarks benefitted from larger exposures to more cyclical names within the information technology, consumer discretionary, health care and industrials sectors. They also benefitted from underweights to more defensive "bond proxy" sectors such as REITs, utilities and telecom. Lower exposure to the energy sector also acted as tailwind to growth benchmarks. 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 110% to 132% of their respective 15 -year P/E averages. The small cap value index appears the most inexpensive and the small cap growth segment looks the most overvalued. Source: Investment Metrics 5 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 of December 31, 2017 Quarter Performance - Russell Style Series 0.0% 2.0% 4.0% 6.0% 8.0% 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 1 -Year Performance - Russell Style Series 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% ■ Sector performance was positive across all sectors for the 41h quarter of 2017. However, only four of eleven economic sectors outpaced the Russell 1000 Index return. Cyclical sectors tended to do well through the period with the higher yielding bond proxy sectors lagging on a relative basis. Apparel and retail companies drove performance within the consumer discretionary sector, which returned 9.2%, leading all other sectors. Technology stocks continued their 2017 gains over the quarter benefitting from robust 3rd quarter earnings and product demand returning 8.9%. Over the trailing 1 -year period, technology was the best performing sector by a relatively wide margin returning an impressive 38.4%. Materials, consumer discretionary, healthcare, industrials and financials all posted returns greater than 20%. Nine of eleven large cap economic sectors posted positive returns for the year with eight posting double digit returns. Energy and telecom services were the only large cap sectors to post negative returns over the last year, returning -1.3% and -1.2% respectively. ■ Small cap sector results were mixed relative to their large capitalization counterparts. Five of eleven economic sectors outpaced the Russell 2000 Index return for the quarter, with nine sectors posting positive results for the period. Most of the sector trends observable in large cap index sector performance also impacted small cap sectors. However, there were several notable differences, particularly in technology, telecom services and financials where there was significant underperformance relative to their large cap counterparts. Small cap sectors trailed large cap sectors in those three categorizations by 8.0%, 7.4% and 6.7% during the quarter respectively. Over the 1 -year period, ten of eleven sectors have posted gains with six of eleven sectors having returns greater than 10%. Over the one year period, health care stocks were the best performers within the Russell 2000 returning a solid 35.7%. Energy was the only Russell 2000 sector to post a negative return over last year, falling a meaningful -18.4%. ■ Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for eight of the GICS sectors were higher than their long-term averages at quarter -end. Using these historical P/E measures, the energy, materials and utilities sectors appear the most extended. In contrast the technology, health care and telecommunications sectors were trading at a discount to their long- term average P/E ratios. The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2017 Russell 1000 Consumer Disc (12.3%) Consumer Staples (7.6%) Energy (5.8%) Financials (14.8%) Health Care (13.5%) Industrials (10.5%) Info Technology (23.4%) Materials (3.4%) Real Estate (3.7%) Telecom Services (1.9%) Utilities (3.1%) ■Quarter ❑1 -Year -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Russell 2000 1■Quarter ❑1 -Year Consumer Disc (12.1 %) Consumer Staples (2.7%) Energy (3.7%) Financials (18.2%) Health Care (15.0%) Industrials (15.2%) Info Technology (17.0%) Materials (4.5%) Real Estate (7.0%) Telecom Services (0.8%) Utilities (3.7%) Source: Morningstar Direct 6 7.7% 15.4% 7.2% 5.3% 6.9% -18.4% 1.6% 6.4% 2.5% 35.7% 6.4% 19.5% 0.9% 16.8% 3.8% 17.7% -0.5% 4.9% -4.0% 5.6% 14.4% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Russell 1000 Apple Inc Top 10 Weighted Weight 3.43% Stocks 1 -Qtr Return 10.2% 1 -Year Return 48.5% Sector Information Technology Microsoft Corp 2.53% 15.4% 40.7% Information Technology Amazon.com Inc 1.83% 21.6% 56.0% Consumer Discretionary Facebook Inc A 1.63% 3.3% 53.4% Information Technology Berkshire Hathaway Inc B 1.50% 8.1% 21.6% Financials Johnson & Johnson 1.49% 8.1% 24.4% Health Care JPMorgan Chase & Co 1.46% 12.6% 26.7% Financials Exxon Mobil Corp 1.40% 3.0% -3.8% Energy Alphabet Inc C 1.25% 9.1% 35.6% Information Technology Alphabet Inc A 1.24% 8.2% 32.9% Information Technology .,,..IWO L ell .ss iii CalAtlantic Group Inc Performing Weight ALReturn 0.02% Stocks (by 1 -Qtr 54.1% Quarter) 1 -Year Return 66.5% Sector Consumer Discretionary Skechers USA Inc 0.02% 50.8% 53.9% Consumer Discretionary First Solar Inc 0.02% 47.2% 110.4% Information Technology Urban Outfitters Inc 0.01% 46.7% 23.1% Consumer Discretionary L Brands Inc 0.06% 46.5% -3.9% Consumer Discretionary Regal Entertainment Group A 0.01% 45.4% 17.0% Consumer Discretionary HollyFrontier Corp 0.04% 43.5% 63.2% Energy Twitter Inc 0.06% 42.3% 47.3% Information Technology The Kroger Co 0.10% 37.6% -19.0% Consumer Staples United States Steel Corp 0.02% 37.4% 7.4% Materials Russell 1000 Bottom 10 Performing Weight 11 Stocks (by 1 -Qtr Return Quarter) 1 -Year Return Sector Mallinckrodt PLC 0.01% -39.6% -54.7% Health Care Intrexon Corp 0.00% -39.4% -49.4% Health Care Pandora Media Inc 0.00% -37.4% -63.0% Information Technology Tesaro Inc 0.01% -35.8% -38.4% Health Care PG&E Corp 0.09% -34.2% -24.5% Utilities Acadia Healthcare Co Inc 0.01% -31.7% -1.4% Health Care OPKO Health Inc 0.01% -28.6% -47.3% Health Care Celgene Corp 0.32% -28.4% -9.8% Health Care General Electric Co 0.60% -27.3% -42.9% Industrials Newell Brands Inc 0.06% -27.0% -29.4% Consumer Discretionary Source: Momingstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2017 or ��Fop Russell 2000 10 Weighted Weight Return Return Sector Nektar Therapeutics Inc 0.42% 148.8% 386.7% Health Care bluebird bio Inc 0.41% 29.7% 188.7% Health Care Sage Therapeutics Inc 0.30% 164.4% 222.6% Health Care Exact Sciences Corp 0.29% 11.5% 293.3% Health Care GrubHub Inc 0.29% 36.3% 90.9% Information Technology Catalent Inc 0.26% 2.9% 52.4% Health Care Knight -Swift Transportation IncA 0.26% 5.4% 33.2% Industrials Curtiss-Wright Corp 0.26% 16.9% 24.6% Industrials EPAM Systems Inc 0.25% 22.2% 67.1% Information Technology Sterling Bancorp 0.25% 0.1% 6.4% Financials Top iii ell 11L. 10 Performing Weight Stocks (by 1 -Qtr Return M"Ret.UIF' Quarter) AM Verso Corp A 0.03% 245.2% 147.5% Materials AnaptysBio Inc 0.09% 188.2% N/A Health Care Sage Therapeutics Inc 0.30% 164.4% 222.6% Health Care Valhi Inc 0.01% 154.6% 82.7% Materials Nektar Therapeutics Inc 0.42% 148.8% 386.7% Health Care Forterra Inc 0.01% 146.7% -48.8% Materials Ignyta Inc 0.07% 116.2% 403.8% Health Care Overstock.com Inc 0.05% 115.2% 265.1% Consumer Discretionary Madrigal Pharmaceuticals Inc 0.02% 104.1% 516.0% Health Care Boot Barn Holdings Inc 0.01% 86.6% 32.7% Consumer Discretionary bBottom Russell 000 MR Iconix Brand Group Inc 10 Performing Weight 0.00% Stocks Return -77.3% (by Quarter) Return -86.2% Sector J Consumer Discretionary Aqua Metals Inc 0.00% 58.9% -83.8% Industrials Immune Design Corp 0.01% -62.3% -29.1% Health Care GNC Holdings Inc 0.01% 58.3% -66.6% Consumer Discretionary Eastman Kodak Co 0.00% -57.8% -80.0% Information Technology GenMark Diagnostics Inc 0.01% -56.7% -65.9% Health Care Willbros Group Inc 0.00% -55.9% -56.2% Energy NanoString Technologies Inc 0.01% -53.8% -66.5% Health Care Nordic American Tankers Ltd 0.01% -53.6% -67.8% Energy Curis Inc 0.00% -53.0% -77.3% Health Care International equity returns advanced during the 41h quarter, largely driven by ongoing improvement in the global economy and continued weakness in the USD. These trends, in tandem with a rally in technology stocks and rising commodity prices, helped emerging markets continue their 2017 outperformance relative to developed market equities. The USD continued its year-to-date decline against most major currencies through the period. This provided additional tailwinds to international index returns denominated in USD. The USD weakness is also visible in the 1 -year performance for broad international indices, with all indices showing higher returns in terms of USD. Results for broad developed market international indices were positive for the 41h quarter in both USD and local currency terms with the MSCI EAFE Index returning 4.2% and 3.7% respectively. While developed markets advanced on the back of positive economic data, ongoing political developments also impacted several markets thorough the quarter. Enthusiasm over the ECB's decision to extend its quantitative easing program was waned by German Chancellor Merkel's failure to form a coalition government and Catalonia's independence referendum. In the UK, initial concerns over a "hard Brexit" were tempered toward the end of the quarter as a the EU and UK were able to come to a preliminary agreement, increasing the odds of a more amicable separation. Prime Minister Abe's coalition government was successful in Japan's October elections, winning a clear majority and providing reassurance that Japan's current monetary and fiscal policies will likely continue without major change. Performance for the past year has been strong on an absolute basis with the MSCI EAFE Index returning 25.0% and 15.2% in USD and local currency terms respectively. The MSCI Emerging Market Index outperformed developed markets during the 41h quarter, returning 7.4% and 5.7% in USD and local currency terms respectively. While the same tailwinds that pushed developed international markets higher also benefitted emerging market equities, rising commodity and technology stock prices also helped gains. Similar to developed markets, political news influenced emerging markets during the quarter. In China, there was a change in posture with a greater focus on quality growth, financial stability and economic reforms. India announced relief for the country's state run banks designed to inject additional liquidity to the financial system to improve lending and stimulate the economy. Mexican stocks suffered as the peso weakened against the dollar and investor concerns surrounding the future of NAFTA's pushed prices lower. Brazil also faced currency headwinds and despite the fact that corruption charges against President Temer were dropped, recent votes indicated that support for future political reforms may have weakened. One year returns for the MSCI Emerging Market Index were an impressive 37.3% in USD terms and 30.6% in terms of local currency. The Market Environment International and Regional Market Index Performance (Country Count) As of December 31, 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 ■USD ❑Local Currency -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 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) Source: MSCI Global Index Monitor (Returns are Net) 8 27.2% 18.2% 24.2% 14.6% 25.0% 15.2% 25.3% 12.9% 24.6% 19.7% 37.3% 30.6% 24.5% 15.2% 42.8% 35.9% 23.7% 22.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 5.0% 4.2% 4.2% 3.7% 4.2% 3.7% 2.2% 1.3% 8.0% 8.1% 7.4% 5.7% 11.7% 7.3% 8.4% 6.1% -2.3% 1.9% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 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) Source: MSCI Global Index Monitor (Returns are Net) 8 27.2% 18.2% 24.2% 14.6% 25.0% 15.2% 25.3% 12.9% 24.6% 19.7% 37.3% 30.6% 24.5% 15.2% 42.8% 35.9% 23.7% 22.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% MSCI-EAFE 1W Consumer Discretionary Sector Weight 12.3% Quarter Return 5.3% 1 -Year Return 24.7% Consumer Staples 11.2% 4.9% 24.1% Energy 5.3% 10.0% 21.6% Financials 21.2% 3.0% 24.7% Health Care 10.1% 0.0% 16.9% Industrials 14.6% 4.8% 30.0% Information Technology 6.4% 5.0% 39.3% Materials 8.2% 8.5% 33.9% Real Estate 3.6% 6.4% 21.7% Telecommunication Services 3.9% 0.7% 12.9% Utilities Tota 1 3.2% 100 .0% -1.0% 19.2% r MSCI - ACWIxUS Consumer Discretionary Sector Weight 11.3% Quarter Return 6.1% 1 -Year Return 28.1% Consumer Staples 9.6% 5.5% 24.0% Energy 6.7% 7.4% 16.5% Financials 23.1% 4.5% 26.0% Health Care 7.6% 1.3% 18.1% Industrials 11.9% 4.8% 29.4% Information Technology 11.5% 6.2% 51.1% Materials 8.2% 8.4% 32.2% Real Estate 3.2% 5.6% 26.5% Telecommunication Services 4.0% 1.5% 14.5% Utilities Tota I 2.9% rr r -0.4% r 18.6% MSCI - Emerging Mkt =Fsector Consumer Discretionary Weight 10.2% e 9.0% 40.1% Consumer Staples 6.6% 8.2% 25.5% Energy 6.8% 7.9% 21.1% Financials 23.5% 8.2% 32.6% Health Care 2.7% 16.6% 32.7% Industrials 5.2% 5.1% 26.1% Information Technology 27.7% 7.1% 60.6% Materials 7.4% 8.7% 33.6% Real Estate 2.8% 3.1% 49.5% Telecommunication Services 4.8% 13.0% 16.8% Utilities Tota 1 2.4% 100 .0% 1.5% 16.6% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of December 31, 2017 Country =F Weight Weight Sin Retum'OjErRe"turnV Japan 24.0% 16.5% 8.5% United Kingdom 17.8% 12.2% 5.7% 22.3% France 10.7% 7.3% 1.5% 28.8% Germany 9.8% 6.7% 2.8% 27.7% Switzerland 8.0% 5.5% 1.8% 22.5% Australia 6.9% 4.8% 6.8% 19.9% Hong Kong 3.6% 2.5% 6.6% 36.2% Netherlands 3.6% 2.5% 0.8% 32.2% Spain 3.2% 2.2% -1.6% 27.1% Sweden 2.7% 1.8% -3.8% 20.6% Italy 2.3% 1.6% -2.3% 28.4% Denmark 1.8% 1.3% 2.2% 34.7% Singapore 1.3% 0.9% 10.1% 35.6% Belgium 1.1% 0.8% -1.5% 18.6% Finland 0.9% 0.6% -2.6% 22.5% Norway 0.7% 0.5% 1.9% 28.3% Ireland 0.5% 0.3% 3.5% 18.1% Israel 0.5% 0.3% 4.1% 2.1% Austria 0.3% 0.2% 5.8% 58.3% New Zealand 0.2% 1 0.1% 1.5% 11.7% Portugal Canada Total Developed China 0.2% rr r 1 0.1% 6.6% 1 7.4% -2.0% 4.3% 7.6% 23.8% r 16.1% 54.1% Korea 3.8% 11.4% 47.3% Taiwan 2.8% 4.0% 27.5% India 2.2% 11.8% 38.8% South Africa 1.8% 21.4% 36.1% Brazil 1.7% -2.0% 24.1% Russia 0.8% 4.3% 5.2% Mexico 0.7% -8.1% 16.0% Malaysia 0.6% 7.9% 25.1% Indonesia 0.6% 8.2% 24.2% Thailand 0.6% 9.5% 34.5% Poland 0.3% 5.8% 54.7% Chile 0.3% 7.2% 42.2% Philippines 0.3% 6.5% 24.6% Turkey 0.3% 4.3% 38.4% United Arab Emirates 0.2% -4.6% 2.9% Qatar 0.1% 4.7% -11.5% Colombia 0.1% 0.8% 16.3% Peru 0.1% 7.3% 38.4% Greece 0.1% 13.3% 28.6% Hungary 0.1% 7.1% 40.0% Czech Republic 0.0% 7.8% 35.5% Egypt 0.0% -2.1% 5.1% Pakistan 0.0% rr r -5.5% r -24.4% l r✓ Source: MSCI Global Index Monitor (Returns are Net in USD) 9 Broad fixed income benchmarks were slightly positive during the 41h quarter. In October, the Fed began implementation of its plan to gradually reduce its balance sheet by systematically slowing the rate of reinvestment of the Treasury and mortgage backed securities (MBS) it holds on its books as the securities mature. This process will reduce the size of the Fed's balance sheet over time and can be viewed as tightening of monetary policy. Positive macroeconomic data throughout the quarter increased expectations that the Federal Open Market Committee (FOMC) would increase short-term interest rates during the quarter, pushing interest rates higher, especially at the short end of the yield curve. The FOMC announced a 25 bps interest rate hike after its December meeting, however, investors were not surprised by the rate increase and market reactions were relatively muted. Despite subdued inflation, the Fed feels the economy is tracking to be healthy enough to warrant continued tightening in 2018. This caused a flattening of the yield curve as short-term market yields rose and rates on maturities greater than 10 years fell. Long-term rates fell due to the artificially low supply caused by significant Fed ownership of long maturity Treasuries as well as strong investor demand. All else equal, this was a benefit to longer duration indices. While this was a relatively difficult period for fixed income investments, the Bloomberg Barclays U.S. Aggregate Index stayed slightly positive for the quarter and calendar year, returning 0.4% and 3.5% respectively. Within investment grade credit, lower quality corporate issues 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. Baa rated credit was the best performing investment grade credit quality segment returning 1.2% for the quarter and 7.4% for the year. High yield debt trailed investment grade credit for the quarter due to its lower duration and lack of spread compression relative to investment grade credit. While investment grade spreads tightened 8 bps during the 4th quarter, spreads on high yield bonds tightened only 4 bps. However, high yield debt continues to be the largest beneficiary of the strengthening economy over last year with the Bloomberg Barclays High Yield Index appreciating 7.5%. A review of sector performance shows that investment grade credit has continued its 2017 trend of outperformance versus Treasuries and MBS securities during the 4th quarter. As previously mentioned, corporate issues benefited from tightening credit spreads throughout the period. Treasuries struggled through the quarter due to lower yields and tightening monetary policy. Despite widening spreads and increased supply, MBS managed to outperform Treasuries for the quarter and the year. For calendar year 2017, Treasury securities were the worst performing investment grade sector returning 2.3%, while U.S. investment grade corporate bonds were the best performing investment grade sector gaining 6.4%. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of December 31, 2017 AAA (5.4) AA (6.0) A (7.6) Baa (7.7) U.S. High Yield (3.9) U.S. Treasury (6.2) U.S. Mortgage (4.4) U.S. Corporate IG (7.6) U.S. TIPS (5.8) Aggregate (6.0) Intermediate Agg (4.2) Global Agg x US (7.8) Multiverse (6.8) Quarter Performance 0.1 0.6% 1.1% 1.2% 0.5% 0.1 0.2 1.2% 1.3% 0.4% -0.1% 1.6% -1.0% 0.0% 1.0% 2.0% 1 -Year Performance AAA (5.4) AA (6.0) A (7.6) Baa (7.7) U.S. High Yield (3.9) U.S. Treasury (6.2) U.S. Mortgage (4.4) U.S. Corporate IG (7.6) U.S. TIPS (5.8) Aggregate (6.0) Intermediate Agg (4.2) Global Agg x US (7.8) Multiverse (6.8) Source: Bloomberg 10 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% ■ Global fixed income indices also posted gains for the quarter. Global benchmarks are impacted by the same local yield and duration factors as domestic benchmarks. While these indices have relatively high durations, which benefitted them in the current quarter, the returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. This currency effect can add additional return to foreign issues as it did during calendar year 2017, or it can further exacerbate negative performance as it did in 2016. Global bonds outperformed domestic issues during the quarter and 1 -year period due to their relatively long durations and a currency effect tailwind caused by a weakening USD. Returns on global bonds represented by the Bloomberg Barclays Global Aggregate ex US Index were 1.6% and 10.5% for the 41h quarter and year-to-date period respectively. As the global economy continues to recover, several international central banks have started to move toward a less accommodative posture during the quarter. Notably, the ECB, while extending its current quantitative easing program well into 2018, announced that it be reducing the amount of monthly asset purchases from 60 billion euro per month to 30 billion euro per month. Similarly, despite a dovish stance on future rate increases, the BoE voted to raise interest rates for the first time in a decade. 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) ended 2017 close to where it began the year, modestly rising during the 41h quarter. During the year, rates peaked during the 15t quarter of 2017 before hitting a low during the 3rd quarter. They then gradually rose to end the year slightly lower than where they started, falling to 2.40% from 2.45%. 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 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 38 bps over the last 12 -months. The green shading at the bottom of the graph illustrates the gradual increase in the Federal Funds Rate due to a less accommodative US monetary policy. The lower graph provides a snapshot of the U.S. Treasury yield curve at the end of each of the last four calendar quarters. As mentioned, the yield curve continues to flatten as yields on shorter -term maturities have risen, while interest rates on the long end of the curve have generally declined. The significant upward shift in short-term interest rates and decline of long-term interest rates throughout the year is clearly visible. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of December 31, 2017 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury 10yr TIPS 0.00 I i i i _-1-07r Dec -16 Jan -17 Feb -17 Mar -17 Apr -17 May -17 Jun -17 Jul -17 Aug -17 Sep -17 Oct -17 Nov -17 Dec -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) 11 Treasury Yield Curve 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Allocation Segments Asset Allocation By Segment as of September 30, 2017 : $47,685,478 Market Value Allocation Allocation Segments Asset Allocation Summary Total Fund As of December 31. 2017 Asset Allocation By Segment as of December 31, 2017 : $50,035,227 Market Value Allocation ■ Domestic Equity 25,181,638 52.8 ■ Domestic Equity 26,777,576 53.5 International Equity 7,011,686 14.7 International Equity 8,778,386 17.5 Domestic Fixed Income 8,466,738 17.8 Domestic Fixed Income 7,500,928 15.0 Other Fixed Income 1,412,680 3.0 Other Fixed Income 1,412,680 2.8 ■ Real Estate 4,986,965 10.5 ■ Real Estate 5,064,001 10.1 ■ Cash Equivalent 625,771 1.3 ■ Cash Equivalent 501,656 1.0 12 Allocation Asset Allocation By Manager as of September 30, 2017 : $47,685,478 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of December 31. 2017 Asset Allocation By Manager as of December 31, 2017 : $50,035,227 Market Value Allocation ■ Vanguard Total Stock Market (VITSX) 25,181,638 52.8 ■ Vanguard Total Stock Market (VITSX) 26,777,576 53.5 RBC Global (Voyageur) 7,011,686 14.7 RBC Global (Voyageur) 8,778,386 17.5 Galliard Core Fixed Income 4,744,096 9.9 Galliard Core Fixed Income 4,746,117 9.5 Intercontinental 2,990,133 6.3 Intercontinental 3,062,622 6.1 ■ American Core Realty Fund 2,021,097 4.2 ■ American Core Realty Fund 2,025,745 4.0 ■ Crescent Direct Lending Fund 1,412,680 3.0 ■ Crescent Direct Lending Fund 1,412,680 2.8 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 2.9 Vanguard Inflation -Protected Secs (VAIPX) 1,406,350 2.8 Galliard TIPS 1,229,296 2.6 Galliard TIPS 1,235,959 2.5 Vanguard Short Term Bond Index (VSCSX) 1,117,229 2.3 Receipt & Disbursement 472,631 0.9 Receipt & Disbursement 587,828 1.2 Vanguard Short Term Bond Index (VSCSX) 117,161 0.2 13 Asset Allocation vs. Target Allocation Total Fund As of December 31, 2017 Asset Allocation vs. Target Allocation Total Domestic Equity 3.5% Total International Equity 2.5% Total Domestic Fixed Income 0.0% Total Global Fixed Income -5.0% Total Real Estate 0.2% Total Other Fixed Income -2.2% Receipt & Disbursement 0.9% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 0 Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation (%) Target (%) Total Domestic Equity 26,777,576 53.5 50.0 Total International Equity 8,778,386 17.5 15.0 Total Domestic Fixed Income 7,505,587 15.0 15.0 Total Global Fixed Income - - 5.0 Total Real Estate 5,088,367 10.2 10.0 Total Other Fixed Income 1,412,680 2.8 5.0 Receipt & Disbursement 472,631 0.9 0.0 Total Fund 50,035,227 100.0 100.0 14 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 Dec -2017 32,193,323 67.51 35,555,962 71.06 26,777,576 53.52 26,777,576 53.52 8,778,386 17.54 8,778,386 17.54 8,918,267 17.82 7,505,587 15.00 4,746,117 9.49 1,235,959 2.47 117,161 0.23 1,406,350 2.81 1,412,680 2.82 1,412,680 2.82 5,088,367 10.17 2,025,745 4.05 3,062,622 6.12 472,631 0.94 50,035,227 100.00 Sep -2017 587,828 1.23 47,685,478 100.00 15 Jun -2017 32,193,323 67.51 25,181,638 52.81 25,181,638 52.81 7,011,686 14.70 7,011,686 14.70 9,893,096 20.75 8,480,416 17.78 4,744,096 9.95 1,229,296 2.58 1,117,229 2.34 1,389,794 2.91 1,412,680 2.96 1,412,680 2.96 5,011,230 10.51 2,021,097 4.24 2,990,133 6.27 587,828 1.23 47,685,478 100.00 15 Jun -2017 30,670,328 66.69 24,087,147 52.38 24,087,147 52.38 6,583,181 14.31 6,583,181 14.31 9,749,910 21.20 8,423,410 18.32 4,713,762 10.25 1,220,883 2.65 1,109,920 2.41 1,378,846 3.00 1,326,500 2.88 1,326,500 2.88 4,934,152 10.73 2,013,359 4.38 2,920,793 6.35 634,926 1.38 45,989,316 100.00 Asset Allocation Asset Allocation History By Portfolio As of December 31, 2017 Mar -2017 29,574,360 65.77 23,378,673 51.99 23,378,673 51.99 6,195,688 13.78 6,195,688 13.78 9,891,004 22.00 8,378,543 18.63 4,665,531 10.38 1,227,188 2.73 1,100,148 2.45 1,385,676 3.08 1,512,461 3.36 1,512,461 3.36 4,887,837 10.87 2,003,854 4.46 2,883,983 6.41 615,111 1.37 44,968,312 100.00 Dec -2016 27,865,267 64.71 22,099,161 51.32 22,099,161 51.32 5,766,106 13.39 5,766,106 13.39 9,783,740 22.72 8,301,561 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 4,828,851 11.21 1,988,901 4.62 2,839,950 6.59 584,559 1.36 43,062,418 100.00 3 Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 e 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Other Fixed Income Real Estate Cash Equivalent Historical Asset Allocation by Segment Total Fund October 1, 2007 To December 31, 2017 M 12/17 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of December 31, 2017 68.0 60.0 52.0 44.0 36.0 e 0 28.0 0 a 20.0 O O 12.0 O 4.0 O O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 53.52 (12) 17.54 (45) 15.00 (92) 0.00 2.82 (91) 10.17 (18) 0.94 (64) 5th Percentile 58.67 29.93 45.47 9.70 30.29 13.04 7.98 1st Quartile 48.94 22.97 34.01 5.10 16.55 9.66 2.33 Median 42.21 16.31 27.48 4.42 9.98 6.98 1.30 3rd Quartile 34.53 13.45 20.26 3.60 4.10 4.84 0.70 95th Percentile 21.11 7.60 13.64 0.34 1.74 2.29 0.06 17 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31, 2017 Financial Reconciliation Quarter to Date 18 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2017 Transfers Fees Expenses Deprec. 12/31/2017 Total Equity 32,193,323 1,416,443 -16,443 -1,216 155,367 1,808,487 35,555,962 Total Domestic Equity 25,181,638 - - - 130,540 1,465,398 26,777,576 Vanguard Total Stock Market (VITSX) 25,181,638 - - - 130,540 1,465,398 26,777,576 Total International Equity 7,011,686 1,416,443 -16,443 -1,216 24,827 343,090 8,778,386 RBC Global (Voyageur) 7,011,686 1,416,443 -16,443 -1,216 24,827 343,090 8,778,386 Total Fixed Income 9,893,096 -999,406 -4,020 -153 28,484 266 8,918,267 Total Domestic Fixed Income 8,480,416 -999,406 -4,020 -153 28,484 266 7,505,587 Galliard Core Fixed Income 4,744,096 594 -4,020 - - 5,446 4,746,117 Galliard TIPS 1,229,296 - - -153 1,070 5,745 1,235,959 Vanguard Short Term Bond Index (VSCSX) 1,117,229 -1,000,000 - 6,692 -6,760 117,161 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 20,722 -4,166 1,406,350 Total Other Fixed Income 1,412,680 - - 1,412,680 Crescent Direct Lending Fund 1,412,680 - - - - 1,412,680 Total Real Estate 5,011,230 -24,265 -15,245 59,841 56,806 5,088,367 American Core Realty Fund 2,021,097 -24,265 -5,586 29,952 4,547 2,025,745 Intercontinental 2,990,133 - - - -9,659 - 29,889 52,259 3,062,622 Receipt & Disbursement 587,828 -392,773 1,013,997 -710,998 - -27,489 2,065 - 472,631 Total Fund Portfolio 47,685,478 - 1,013,997 -710,998 -35,709 -28,858 245,758 1,865,559 50,035,227 18 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2017 To December 31, 2017 Financial Reconciliation Fiscal Year to Date Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2017 Transfers Fees Expenses Deprec. 12/31/2017 Total Equity 32,193,323 1,416,443 -16,443 -1,216 155,367 1,808,487 35,555,962 Total Domestic Equity 25,181,638 - - - 130,540 1,465,398 26,777,576 Vanguard Total Stock Market (VITSX) 25,181,638 - - - 130,540 1,465,398 26,777,576 Total International Equity 7,011,686 1,416,443 -16,443 -1,216 24,827 343,090 8,778,386 RBC Global (Voyageur) 7,011,686 1,416,443 -16,443 -1,216 24,827 343,090 8,778,386 Total Fixed Income 9,893,096 -999,406 -4,020 -153 28,484 266 8,918,267 Total Domestic Fixed Income 8,480,416 -999,406 -4,020 -153 28,484 266 7,505,587 Galliard Core Fixed Income 4,744,096 594 -4,020 - - 5,446 4,746,117 Galliard TIPS 1,229,296 - - -153 1,070 5,745 1,235,959 Vanguard Short Term Bond Index (VSCSX) 1,117,229 -1,000,000 - 6,692 -6,760 117,161 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 20,722 -4,166 1,406,350 Total Other Fixed Income 1,412,680 - - 1,412,680 Crescent Direct Lending Fund 1,412,680 - - - - 1,412,680 Total Real Estate 5,011,230 -24,265 -15,245 59,841 56,806 5,088,367 American Core Realty Fund 2,021,097 -24,265 -5,586 29,952 4,547 2,025,745 Intercontinental 2,990,133 - - - -9,659 - 29,889 52,259 3,062,622 Receipt & Disbursement 587,828 -392,773 1,013,997 -710,998 - -27,489 2,065 - 472,631 Total Fund Portfolio 47,685,478 - 1,013,997 -710,998 -35,709 -28,858 245,758 1,865,559 50,035,227 19 3 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of December 31, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 4.35 4.35 16.11 9.02 11.07 6.14 11/01/2000 Total Fund Policy 4.07 4.07 15.54 8.39 10.55 5.81 Total Fund (New Mgrs) (Net) 4.35 4.35 16.11 9.02 11.07 6.31 10/01/2007 Total Fund Policy 4.07 4.07 15.54 8.39 10.55 6.87 Total Fund (Gross) 4.42 (9) 4.42 (9) 16.41 (31) 9.35 (2) 11.44 (2) 6.76 (13) 11/01/2000 Total Fund Policy 4.07 (23) 4.07 (23) 15.54 (47) 8.39 (13) 10.55 (7) 5.81 (68) All Public Plans -Total Fund Median 3.69 3.69 15.40 7.41 9.13 6.09 Total Fund (New Mgrs) (Gross) 4.42 (9) 4.42 (9) 16.41 (31) 9.35 (2) 11.44 (2) 6.84 (8) 10/01/2007 Total Fund Policy 4.07 (23) 4.07 (23) 15.54 (47) 8.39 (13) 10.55 (7) 6.87 (7) All Public Plans -Total Fund Median 3.69 3.69 15.40 7.41 9.13 5.94 Total Equity 6.10 6.10 22.59 11.23 14.76 7.09 01/01/2001 Total Equity Policy 5.86 5.86 22.18 10.51 13.94 5.83 Total Domestic Equity 6.34 (64) 6.34 (64) 21.17 (60) 11.16 (50) 15.58 (56) 7.07 (35) 11/01/2000 Total Domestic Equity Policy 6.34 (64) 6.34 (64) 21.13 (61) 11.12 (52) 15.58 (56) 5.78 (91) IM U.S. Large Cap Core Equity (SA+CF) Median 6.67 6.67 21.82 11.16 15.76 6.55 Total International Equity 5.22 (29) 5.22 (29) 28.02 (32) 11.51 (11) 12.42 (6) 7.05 (50) 11/01/2000 MSCI EAFE Index 4.27 (50) 4.27 (50) 25.62 (55) 8.30 (57) 8.39 (59) 4.93 (99) IM International Large Cap Value Equity (SA+CF) Median 4.22 4.22 26.27 8.93 8.96 7.05 Total Fixed Income 0.30 0.30 ' 3.20 2.30 4.95 11/01/2000 Total Fixed Policy -0.07 -0.07 2.27 1.82 1.70 4.63 Total Domestic Fixed Income 0.35 (100) 0.35 (100) 2.64 (100) 2.26 (100) 1.64 (100) 4.69 (100) 11/01/2000 Total Domestic Fixed Policy -0.07 (100) -0.07 (100) 2.27 (100) 1.82 (100) 1.70 (100) 4.63 (100) IM U.S. Large Cap Core Equity (SA+CF) Median 6.67 6.67 21.82 11.16 15.76 6.55 Total Real Estate 2.34 (38) 2.34 (38) 8.45 (52) 11.22 (42) 12.49 (42) 5.89 (28) 10/01/2007 NCREIF Fund Index-ODCE (VW) 2.07 (64) 2.07 (64) 7.62 (67) 10.42 (74) 11.53 (74) 5.12 (52) IM U.S. Open End Private Real Estate (SA+CF) Median 2.14 2.14 8.52 10.93 12.20 5.17 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. 20 Comparative Performance Trailing Returns Total Fund As of December 31, 2017 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 6.34 (41) 6.34 (41) 21.17 (37) 11.09 (14) N/A 14.55 (21) 03/01/2013 Vanguard Total Stock Market Index Hybrid 6.34 (40) 6.34 (40) 21.19 (37) 11.09 (14) 15.58 (19) 14.57 (20) IM U.S. Multi -Cap Core Equity (MF) Median 6.03 6.03 20.33 9.41 14.39 13.30 RBC Global (Voyageur) 5.22 (29) 5.22 (29) 28.02 (32) 11.51 (11) 12.42 (6) 5.05 (14) 11/01/2007 MSCI EAFE Index 4.27 (50) 4.27 (50) 25.62 (55) 8.30 (57) 8.39 (59) 1.82 (84) IM International Large Cap Value Equity (SA+CF) Median 4.22 4.22 26.27 8.93 8.96 2.94 Galliard Core Fixed Income 0.11 (31) 0.11 (31) 2.74 (34) 2.27 (33) 1.98 (37) 3.87 (71) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index -0.07 (79) -0.07 (79) 2.27 (79) 1.82 (78) 1.70 (69) 3.73 (84) IM U.S. Intermediate Duration (SA+CF) Median 0.01 0.01 2.57 2.12 1.87 4.08 Galliard TIPS 0.55 (91) 0.55 (91) 2.19 (81) 1.95 (74) 0.16 (62) 3.18 (100) 10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year 0.53 (94) 0.53 (94) 1.90 (100) 1.78 (92) 0.09 (90) 3.24 (100) IM U.S. TIPS (SA+CF) Median 1.26 1.26 3.09 2.09 0.19 4.00 Vanguard Short Term Bond Index (VSCSX) -0.05 (35) -0.05 (35) 2.26 (23) 2.10 (19) N/A 2.10 (19) 01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index -0.09 (42) -0.09 (42) 2.56 (12) 2.22 (12) 2.05 (7) 2.22 (12) IM U.S. Intermediate Investment Grade (MF) Median -0.13 -0.13 1.83 1.45 1.10 1.45 American Core Realty Fund 1.73 (87) 1.73 (87) 8.08 (58) 10.12 (80) 10.87 (86) 4.80 (84) 10/01/2007 American Core Realty Policy 2.15 (50) 2.15 (50) 7.80 (62) 10.70 (57) 11.54 (74) 7.11 (4) IM U.S. Open End Private Real Estate (SA+CF) Median 2.14 2.14 8.52 10.93 12.20 5.17 Intercontinental 2.75 (16) 2.75 (16) 8.69 (47) 12.17 (26) 13.48 (26) 14.24 (37) 10/01/2010 NCREIF Fund Index-ODCE 2.07 (64) 2.07 (64) 7.62 (67) 10.42 (74) 11.53 (74) 12.38 (80) IM U.S. Open End Private Real Estate (SA+CF) Median 2.14 2.14 8.52 10.93 12.20 13.03 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. 21 Comparative Performance - IRR QTR Crescent Direct Lending Fund 0.00 1 YR 6.69 22 3 YR 8.33 5 YR N/A Comparative Performance - IRR As of December 31, 2017 Inception 7.42 Inception Date 10/14/2014 Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2017 Comparative Performance Fiscal Year Returns FYTD Oct -2016 To Sep -2017 Oct -2015 To Sep -2016 Oct -2014 To Sep -2015 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 Total Fund (Net) 4.35 (11) 14.10 (14) 11.15 (10) 0.33 (28) 11.85 (13) 15.72 (7) 18.95 (27) -1.17 (81) 10.67 (31) 0.70 (65) Total Fund Policy 4.07 (23) 12.89 (36) 10.64 (19) 0.55 (25) 11.38 (22) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (74) 0.33 (70) All Public Plans -Total Fund Median 3.69 12.20 9.68 -0.49 10.17 12.50 17.98 0.29 9.90 1.56 Total Fund (New Mgrs) (Net) 4.35 (11) 14.10 (14) 11.15 (10) 0.33 (28) 11.85 (13) 15.72 (7) 18.95 (27) -1.17 (81) 10.66 (31) 0.68 (65) Total Fund Policy 4.07 (23) 12.89 (36) 10.64 (19) 0.55 (25) 11.38 (22) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (74) 0.33 (70) All Public Plans -Total Fund Median 3.69 12.20 9.68 -0.49 10.17 12.50 17.98 0.29 9.90 1.56 Total Fund (Gross) 4.42 (9) 14.45 (11) 11.51 (7) 0.63 (23) 12.21 (9) 16.33 (4) 19.81 (14) -0.45 (68) 11.40 (18) 1.43 (52) Total Fund Policy 4.07 (23) 12.89 (36) 10.64 (19) 0.55 (25) 11.38 (22) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (74) 0.33 (70) All Public Plans -Total Fund Median 3.69 12.20 9.68 -0.49 10.17 12.50 17.98 0.29 9.90 1.56 Total Fund (New Mgrs) (Gross) 4.42 (9) 14.45 (11) 11.51 (7) 0.63 (23) 12.21 (9) 16.33 (4) 19.81 (14) -0.45 (68) 11.40 (18) 1.39 (53) Total Fund Policy 4.07 (23) 12.89 (36) 10.64 (19) 0.55 (25) 11.38 (22) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (74) 0.33 (70) All Public Plans -Total Fund Median 3.69 12.20 9.68 -0.49 10.17 12.50 17.98 0.29 9.90 1.56 Total Equity OW 6.101W 19.50 -1.52 23.09 13.61 Total Equity Policy 5.86 19.00 13.13 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 Total Domestic Equity 6.34 (64) 18.64 (51) 15.21 (25) -0.59 (62) 17.58 (69) 21.85 (34) 27.76 (62) -3.30 (90) 14.19 (8) -4.29 (38) Total Domestic Equity Policy 6.34 (64) 18.71 (51) 14.96 (28) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (58) 10.96 (31) -6.91 (64) IM U.S. Large Cap Core Equity (SA+CF) Median 6.67 18.71 13.16 0.02 19.25 20.62 29.70 1.16 9.50 -5.79 Total International Equity 5.22 (29) 22.69 (36) 10.74 (27) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (20) MSCI EAFE Index 4.27 (50) 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) -8.94 (55) 3.71 (66) 3.80 (65) IM International Large Cap Value Equity (SA+CF) Median 4.22 20.82 8.35 -9.40 5.75 22.94 15.39 -8.65 5.00 6.22 Total Fixed Income 0.30 3.31 4.93 3.23 M -0.59 ' 6.34 ■ 4.67 9.27 10.53 Total Fixed Policy -0.07 0.25 3.57 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 Total Domestic Fixed Income 0.35 (100) 0.61 (100) 4.21 (98) 2.31 (25) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (54) 10.53 (2) Total Domestic Fixed Policy -0.07 (100) 0.25 (100) 3.57 (99) 2.95 (20) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (15) 7.52 (78) 9.69 (2) IM U.S. Large Cap Core Equity (SA+CF) Median 6.67 18.71 13.16 0.02 19.25 20.62 29.70 1.16 9.50 -5.79 Total Global Fixed Income N/A N/A 0.81 (100) -7.63 (91) 6.31 (12) 3.53 (2) N/A N/A N/A N/A Total Global Fixed Income Policy 1.04 (19) -2.69 (94) 9.71 (18) -3.83 (50) -0.07 (96) -4.60 (82) N/A N/A N/A N/A IM Global Fixed Income (MF) Median 0.69 1.10 7.27 -3.84 3.41 -1.80 7.18 1.77 7.68 13.86 Total Real Estate 2.34 (38) 10.01 (20) 11.44 (49) 14.27 (67) 13.47 (38) 16.42 (19) 12.81 (54) 15.82 (72) 2.71 (77) -32.42 (35) NCREIF Fund Index-ODCE 2.07 (64) 7.66 (65) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) IM U.S. Open End Private Real Estate (SA+CF) Median 2.14 8.30 11.32 15.45 12.78 13.18 12.90 16.62 6.39 -34.80 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 23 Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA+CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA+CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Bloomberg Barclays Intermed Aggregate Index IM U.S. Intermediate Duration (SA+CF) Median Galliard TIPS Blmbg. Barc. U.S. TIPS 1-10 Year Vanguard Short Term Bond Index (VSCSX) Blmbg. Barc. U.S. Corporate 1-5 Year Index IM U.S. Intermediate Investment Grade (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA+CF) Median Intercontinental NCREIF Fund Index-ODCE IM U.S. Open End Private Real Estate (SA+CF) Median Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 FYTD To To To To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 N/A N/A N/A N/A N/A N/A 33.21 (8) -1.17 (75) 11.93 (43) 0.53 (22) 7.86 (22) 21.94 (36) 13.76 (22) 3.17 (55) 19.15 (39) 19.27 (64) 29.19 (38) 3.78 (30) 12.65 (35) -1.85 (37) 6.91 20.80 11.64 3.60 18.09 20.25 27.63 1.37 11.27 -3.01 5.22 (29) 22.69 (36) 10.74 (27) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (20) 4.27 (50) 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) -8.94 (55) 3.71 (66) 3.80 (65) 4.22 20.82 8.35 -9.40 5.75 22.94 15.39 -8.65 5.00 6.22 6.34 (41) 18.64 (36) 15.00 (14) -0.59 (35) 17.77 (30) N/A N/A N/A N/A N/A 6.34 (40) 18.64 (36) 14.99 (14) -0.55 (34) 17.77 (30) 21.60 (59) 30.28 (16) 0.71 (25) 11.16 (27) -6.03 (55) 6.03 17.40 11.57 -1.73 16.25 22.74 26.56 -1.60 9.38 -5.52 0.11 (31) 0.44 (75) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (28) 9.63 (17) 12.08 (38) -0.07 (79) 0.25 (87) 3.57 (72) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (84) 4.22 (23) 7.52 (77) 9.69 (81) 0.01 0.70 3.91 2.70 2.89 -0.27 5.56 3.61 8.26 11.51 0.55 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 0.53 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 -0.05 (35) 1.55 (25) 3.40 (24) N/A N/A N/A N/A N/A N/A N/A -0.09 (42) 1.82 (18) 3.33 (27) 1.98 (12) 2.46 (27) 1.47 (16) 6.29 (29) 1.83 (58) 8.25 (37) 16.02 (2) -0.13 0.84 2.71 1.21 1.67 -0.51 4.93 1.99 7.52 10.46 1.73 (87) 7.52 (69) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) 11.56 (68) 16.11 (66) 2.71 (77) -32.42 (35) 2.15 (50) 7.81 (62) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 2.14 8.30 11.32 15.45 12.78 13.18 12.90 16.62 6.39 -34.80 2.75 (16) 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) 13.38 (43) 15.68 (73) N/A N/A 2.07 (64) 7.66 (65) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 2.14 8.30 11.32 15.45 12.78 13.18 12.90 16.62 6.39 -34.80 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 24 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 23.00 28.00 20.00 24.00 20.00 17.00 O 16.00 14.00 12.00 E O E ' 11.00 ' v m • � • 8.00 Ci 8.00 4.00 5.00 s o 0 0 0 0 0.00 2.00 x.00 -1.00 -8.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 4.42 (9) 4.42 (9) 16.41 (31) 13.12 (5) 9.35 (2) 8.76 (2) 11.44 (2) O Total Fund Policy 4.07 (23) 4.07 (23) 15.54 (47) 11.77 (32) 8.39 (13) 8.23 (10) 10.55 (7) Median 3.69 3.69 15.40 11.24 7.41 7.23 9.13 Comparative Performance Performance Review Total Fund Portfolio As of December 31. 2017 •p Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Total Fund Portfolio 14.45 (11) 11.51 (7) 0.63 (23) 12.21 (9) 16.33 (4) 19.81 (14) O Total Fund Policy 12.89 (36) 10.64 (19) 0.55 (25) 11.38 (22) 15.00 (12) 19.61 (18) Median 12.20 9.68 Total Fund Portfolio 3.82 (22) -0.49 10.17 12.50 17.98 1.16 (92) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Total Fund Portfolio 3.82 (22) 2.79 (65) 4.46 (49) 2.66 (4) 4.39 (8) 1.16 (92) Total Fund Policy 3.48 (47) 2.80 (65) 4.36 (56) 1.69 (15) 3.50 (46) 1.73 (63) All Public Plans -Total Fund Median 3.46 2.99 4.43 0.80 3.39 1.91 25 3 Yr Rolling Under/Over Performance - 5 Years 20.0 e Over o Performance 0 16.0 O 0 0 (L 12.0 • v LL 8.0 Under 0 F Performance 4.0 4.0 8.0 12.0 16.0 20.0 Total Fund Policy (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 10.24 9.60 • 8.96 «' 8.32 O rr 7.68 7.04 4.65 4.70 4.75 4.80 4.85 4.90 4.95 5.00 5.05 Risk (Standard Deviation %) Return Standard Deviation Performance Review Total Fund Portfolio As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 0.0 p O rr w 25.0 c v � 50.0 `w a 75.0 v rr 100.0 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count • Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scattergram - 5 Years 12.16 11.40 10.64 O w 9.88 rr 9.12 8.36 4.8 4.9 20(100%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 5.0 5.1 5.2 5.3 Risk (Standard Deviation %) Return Standard Deviation 0 5.4 • Total Fund Portfolio 9.35 4.94 • Total Fund Portfolio 11.44 5.33 O Total Fund Policy 8.39 4.73 O Total Fund Policy 10.55 4.95 Median 7.41 4.97 Median 9.13 5.08 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.80 109.37 100.94 0.63 1.13 1.81 1.03 2.70 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.70 1.00 2.67 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.02 108.22 108.46 0.24 0.82 2.05 1.06 2.14 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 2.04 1.00 2.09 26 uz� Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 32.00 44.00 28.00 36.00 24.00 28.00 •O 20.00 20.00 16.00 E E 3 3 12.00 NEEL m m 12.00 �r 4.00 8.00 x.00 4.00 0.00 -4.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 6.34 (41) 6.34 (41) 21.17 (37) 16.84 (22) 11.09 (14) 11.45 (14) N/A O VG Total Stock Mkt Hybrid 6.34 (40) 6.34 (40) 21.19 (37) 16.86 (21) 11.09 (14) 11.46 (13) 15.58 (19) Median 6.03 6.03 20.33 15.20 9.41 9.77 14.39 Comparative Performance -12.00 •O Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2017 MI -20.00 1 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • VG Total Stock Mkt (VITSX) 18.64 (36) 15.00 (14) -0.59 (35) 17.77 (30) N/A N/A O VG Total Stock Mkt Hybrid 18.64 (36) 14.99 (14) -0.55 (34) 17.77 (30) 21.60 (59) 30.28 (16) Median 17.40 11.57 -1.73 16.25 22.74 26.56 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 VG Total Stock Mkt (VITSX) 4.54 (41) 3.03 (42) 5.79 (41) 4.12 (41) 4.42 (53) 2.67 (20) VG Total Stock Mkt Hybrid 4.55 (40) 3.04 (42) 5.79 (41) 4.11 (41) 4.41 (54) 2.69 (20) IM U.S. Multi -Cap Core Equity (MF) Median 4.29 2.87 5.52 3.60 4.48 1.43 27 3 3 Yr Rolling Under/Over Performance - 5 Years 12.0 Over X Performance F 11.0 x 10.0 Y U 0 9.0 v! A 0 8.0 0 7.0 7.0 8.0 9.0 10.0 VG Total Stock Mkt Hybrid (%) • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 11.55 11.00 C* 10.45 «' 9.90 v rr Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 11.09 10.08 y 0.0 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 11.09 O O O VG Total Stock Mkt Hybrid 15.58 w 25.0 O 9.65 Median - O 00 10.34 O Median 14.39 O 10.03 Historical Statistics - 3 Years U 50.0 `w a 75.0 v rr Tracking Up Down 100.0 Information Sharpe Under Error Market Performance 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 11.0 12.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count a..s� 8.80 10.01 10.08 10.15 10.22 10.29 10.36 10.43 Risk (Standard Deviation %) Return Standard Deviation lb VG Total Stock Mkt (VITSX) 8 O VG Total Stock Mkt Hybrid 20 Peer Group Scattergram - 5 Years 15.99 15.60 - O 15.21 «' 14.82 v rr 14.43 14.04 9.52 9.60 9.68 7 (88%) 1 (13%) 0 (0%) 0 (0%) 10 (50%) 10 (50%) 0 (0%) 0 (0%) 9.76 9.84 9.92 Risk (Standard Deviation %) Return 10.00 10.08 Standard Deviation 10.16 • VG Total Stock Mkt (VITSX) 11.09 10.08 • VG Total Stock Mkt (VITSX) N/A N/A O VG Total Stock Mkt Hybrid 11.09 10.07 O VG Total Stock Mkt Hybrid 15.58 9.65 Median 9.41 10.34 Median 14.39 10.03 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) 0.03 100.02 100.07 -0.01 -0.05 1.06 1.00 5.70 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 N/A 1.06 1.00 5.69 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) N/A N/A N/A N/A N/A N/A N/A N/A VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 N/A 1.53 1.00 4.99 28 3 Performance Review RBC Global (Voyageur) As of December 31. 2017 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) 44.00 44.00 38.00 36.00 32.00 28.00 0 26.00 0 20.00 0 0 20.00 12.00 E E • d w 0 O 14.00 0 4.00 8.00 0 0 0 -4.00 0 �0 �0 0 0 2.00 -12.00 -4.00 -20.00 -10.00 -28.00 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • RBC Global (Voyageur) 5.22 (29) 5.22 (29) 28.02 (32) 16.94 (25) 11.51 (11) 7.73 (14) 12.42 (6) • RBC Global (Voyageur) 22.69 (36) 10.74 (27) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) O MSCI EAFE Index 4.27 (50) 4.27 (50) 25.62 (55) 12.92 (67) 8.30 (57) 4.95 (65) 8.39 (59) O MSCI EAFE Index 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (42) 14.33 (56) Median 4.22 4.22 26.27 14.17 8.93 5.48 8.96 Median 20.82 8.35 -9.40 5.75 22.94 15.39 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 RBC Global (Voyageur) 6.53 (30) 6.27 (45) 7.47 (60) 0.85 (37) 12.90 (2) -5.53 (97) MSCI EAFE Index 5.47 (58) 6.37 (42) 7.39 (63) -0.68 (58) 6.50 (59) -1.19 (45) IM International Large Cap Value Equity (SA+CF) Median 5.66 6.04 7.69 -0.24 7.01 -1.41 29 3 Yr Rolling Under/Over Performance - 5 Years 32.0 Over Performance 24.0 w o A 00 16.0 u p n8.0 ,., n , `-� o 0 ( y DOO � O 0.0 m rr -8.0 -8.0 0.0 8.0 16.0 MSCI EAFE Index (%) OOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 14.00 12.00 10.00 v 8.00 6.00 9.20 9.66 10.12 10.58 11.04 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 11.51 11.91 • RBC Global (Voyageur) y 0.0 0 O 0 0 0 0 0 0 0 0 0 0• 8.39 10.16 Median O 10.36 0 8.96 • v 25.0 O O 0 Tracking 50.0 Down 000000 OOOO Sharpe 000000 Downside Error Market Market Alpha Ratio Ratio Beta Risk O O a O RBC Global (Voyageur) 4.62 109.33 0 3.32 75.0 0.92 0.97 7.73 MSCI EAFE Index 0.00 100.00 100.00 0.00 K 0.70 1.00 7.50 Historical Statistics - 5 Years 100.0 Tracking Up Down Information Sharpe Under Downside Error Market Market Alpha Ratio Ratio Beta Performance 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 24.0 32.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 0 lb RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scattergram - 5 Years 14.00 12.00 10.00 8.00 O 6.00 18 (90%) 2 (10%) 0 (0%) 0 (0%) 0 (0%) 9 (45%) 11 (55%) 0 (0%) n 11.50 11.96 12.42 10.00 10.40 10.80 11.20 11.60 12.00 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 12.40 • RBC Global (Voyageur) 11.51 11.91 • RBC Global (Voyageur) 12.42 11.94 O MSCI EAFE Index 8.30 9.88 O MSCI EAFE Index 8.39 10.16 Median 8.93 10.36 Median 8.96 10.37 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.62 109.33 91.58 3.32 0.65 0.92 0.97 7.73 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.70 1.00 7.50 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.90 110.62 87.39 4.17 0.76 1.01 0.96 7.06 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.73 1.00 6.90 30 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 5.79 5.08 4.37 3.66 2.95 E ' 2.24 O w 1.53 0.82 0.11 ■ ■ -0.60 -1.31 Comparative Performance Performance Review Galliard Core Fixed Inc As of December 31. 2017 12.00 r- 10.00 8.00 6.00 E ' 4.00 rc O so 2.00 J M 0.00 • o -2.00 -4.00 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Galliard Core Fixed Inc 0.44 (75) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) O Barclays IntAgg Index 0.25 (87) 3.57 (72) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (84) Median 0.70 3.91 2.70 2.89 -0.27 5.56 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 0.11 (31) 0.11 (31) 2.74 (34) 2.59 (42) 2.27 (33) 2.78 (29) 1.98 (37) O Barclays IntAgg Index -0.07 (79) -0.07 (79) 2.27 (79) 2.12 (80) 1.82 (78) 2.39 (60) 1.70 (69) Median 0.01 0.01 2.57 2.51 2.12 2.48 1.87 Comparative Performance Performance Review Galliard Core Fixed Inc As of December 31. 2017 12.00 r- 10.00 8.00 6.00 E ' 4.00 rc O so 2.00 J M 0.00 • o -2.00 -4.00 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Galliard Core Fixed Inc 0.44 (75) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) O Barclays IntAgg Index 0.25 (87) 3.57 (72) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (84) Median 0.70 3.91 2.70 2.89 -0.27 5.56 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Galliard Core Fixed Inc 0.79 (33) 1.03 (44) 0.78 (61) -2.12 (89) 0.30 (60) 1.77 (33) Barclays Int Agg Index 0.72 (50) 0.92 (73) 0.68 (81) -2.05 (79) 0.31 (58) 1.44 (73) IM U.S. Intermediate Duration (SA+CF) Median 0.72 1.02 0.81 -1.83 0.38 1.58 31 3 3 Yr Rolling Under/Over Performance - 5 Years 7.s Over Performance v 6.0 v X 4.5 LL v m p U 3.0 e O ` v 0 1.5 A C7 0.0 0.0 1.5 3.0 4.5 Barclays Int Agg Index (%) Over Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.40 2.20 Performance Review Galliard Core Fixed Inc As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 2.27 2.34 • Galliard Core Fixed Inc y 0.0 2.26 O Barclays Int Agg Index 1.82 2.21 O Barclays Int Agg Index 1.70 A rr v 25.0 Median 2.12 2.24 0 0 0 0 0 0 0 0 vO000000000 Historical Statistics - 3 Years a 50.0 Down Information Sharpe Q O Error Market 75.0 Alpha O 00 O Risk O 0 0 Capture O O 00 Galliard Core Fixed Inc 0.31 111.12 96.30 K 1.41 0.90 1.06 1.20 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 100.0 1.00 1.18 Historical Statistics - 5 Years Under Tracking Up Down Information Sharpe Performance Downside 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 6.0 7.5 Capture Capture 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 0 2.00 1.80 O 1.60 2.16 2.19 2.22 2.25 2.28 2.31 2.34 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard Core Fixed Inc 20 O Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 2.10 2.00 1.90 «' 1.80 rr O 1.70 1.60 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) 2.37 2.10 2.13 2.16 2.19 2.22 Risk (Standard Deviation %) Return • 2.25 2.28 2.31 Standard Deviation • Galliard Core Fixed Inc 2.27 2.34 • Galliard Core Fixed Inc 1.98 2.26 O Barclays Int Agg Index 1.82 2.21 O Barclays Int Agg Index 1.70 2.13 Median 2.12 2.24 Median 1.87 2.12 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.31 111.12 96.30 0.34 1.41 0.90 1.06 1.20 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 0.74 1.00 1.18 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.31 105.69 96.41 0.22 0.91 0.81 1.04 1.30 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 0.71 1.00 1.28 32 uz� Peer Group Analysis - IM U.S. TIPS (SA+CF) 6.65 5.86 5.07 4.28 3.49 2.70 1.91 1.12 •p •p 0.33 -0.46 -1.25 17.00 14.00 11.00 8.00 5.00 •O r 2.00 Ci 0 O -1.00 00 -4.00 ■ -7.00 -10.00 -13.00 •O ■ r Performance Review Galliard TIPS As of December 31. 2017 33 uz� Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Galliard TIPS 0.55 (91) 0.55 (91) 2.19 (81) 2.97 (97) 1.95 (74) 1.68 (83) 0.16 (62) • Galliard TIPS -0.23 (37) 4.75 (95) -0.38 (19) 0.59 (86) -3.71 (9) 6.01 (98) O Barclays US TIPS 1-10 Yr 0.53 (94) 0.53 (94) 1.90 (100) 2.95 (98) 1.78 (92) 1.56 (97) 0.09 (90) O Barclays US TIPS 1-10 Yr -0.14 (34) 4.83 (95) -0.82 (53) 0.61 (81) -3.90 (17) 6.32 (92) Median 1.26 1.26 3.09 3.91 2.09 2.46 0.19 Median -0.55 6.53 -0.80 1.56 -5.73 9.02 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Galliard TIPS 0.70 (90) -0.50 (92) 1.42 (26) -1.82 (33) 0.63 (84) 1.33 (83) Barclays US TIPS 1-10 Yr 0.70 (90) -0.40 (75) 1.05 (88) -1.47 (14) 0.57 (96) 1.32 (85) IM U.S. TIPS (SA+CF) Median 0.89 -0.37 1.28 -2.35 0.99 1.69 33 uz� 3 Yr Rolling Under/Over Performance - 5 Years 9.0 Over 6.0 Performance a 3.0 v 0.0 70 0 -3.0 -6.0 -6.0 -3.0 0.0 3.0 Barclays US TIPS 1-10 Yr(%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.20 Performance Review Galliard TIPS As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 1.95 2.82 • Galliard TIPS 0.16 y 0.0 O Barclays US TIPS 1-10 Yr 1.78 2.55 O Barclays US TIPS 1-10 Yr 0.09 3.74 Median 2.09 3.43 Median 0.19 w v 25.0 Historical Statistics - 3 Years • Q O 50.0 O Up Down Information Sharpe a" Downside Error Market O Alpha Ratio Ratio Beta 75.0 • Capture O O 00 Q Under w • Q 101.16 95.41 n 8 0.33 00 Performance 1.38 •• Q • 0.00 100.00 100.00 O lJ O O 1.00 100.0 Historical Statistics - 5 Years 6.0 9.0 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 Downside 5-25 Market 25 -Median Median -75 75-95 Ratio Beta Total Period Capture Capture Count Count Count Count is 2.00 • 1.80 O 1.60 2.55 2.72 2.89 3.06 3.23 3.40 3.57 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 O Barclays US TIPS 1-10 Yr 20 Peer Group Scattergram - 5 Years 0.24 0.20 0.16 . «9 0.12 0.08 O 0.04 3.40 3.60 3.80 2 (10%) 2 (10%) 7 (35%) 9 (45%) 2 (10%) 0 (0%) 2 (10%) 16 (80%) 4.00 4.20 4.40 Risk (Standard Deviation %) Return 4.60 4.80 Standard Deviation 5.00 • Galliard TIPS 1.95 2.82 • Galliard TIPS 0.16 3.88 O Barclays US TIPS 1-10 Yr 1.78 2.55 O Barclays US TIPS 1-10 Yr 0.09 3.74 Median 2.09 3.43 Median 0.19 4.77 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.53 101.16 95.41 0.10 0.33 0.56 1.04 1.38 Barclays US TI PS 1-10 Yr 0.00 100.00 100.00 0.00 N/A 0.53 1.00 1.39 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.84 98.81 96.92 0.07 0.09 -0.01 1.03 2.50 Barclays US TIPS 1-10 Yr 0.00 100.00 100.00 0.00 N/A -0.03 1.00 2.49 34 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 5.08 4.34 3.60 2.86 O O 2.12 E d 1.38 0.64 -0.10 00 00 -0.84 -1.58 1 12.00 Comparative Performance 10.00 8.00 6.00 4.00 d a 2.00 0.00 -2.00 -4.00 Performance Review VG ST Bond Index (VSCSX) As of December 31. 2017 U -6.00 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • VG ST Bond Index (VSCSX) 1.55 (25) 3.40 (24) N/A N/A N/A N/A O Barclays US Corp 1-5 Yr Index 1.82 (18) 3.33 (27) 1.98 (12) 2.46 (27) 1.47 (16) 6.29 (29) Median 0.84 2.71 1.21 1.67 -0.51 4.93 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) -0.05 (35) -0.05 (35) 2.26 (23) 2.54 (28) 2.10 (19) N/A N/A O Barclays US Corp 1-5 Yr Index -0.09 (42) -0.09 (42) 2.56 (12) 2.71 (22) 2.22 (12) 2.18 (14) 2.05 (7) Median -0.13 -0.13 1.83 2.00 1.45 1.54 1.10 Comparative Performance 10.00 8.00 6.00 4.00 d a 2.00 0.00 -2.00 -4.00 Performance Review VG ST Bond Index (VSCSX) As of December 31. 2017 U -6.00 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • VG ST Bond Index (VSCSX) 1.55 (25) 3.40 (24) N/A N/A N/A N/A O Barclays US Corp 1-5 Yr Index 1.82 (18) 3.33 (27) 1.98 (12) 2.46 (27) 1.47 (16) 6.29 (29) Median 0.84 2.71 1.21 1.67 -0.51 4.93 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 VG ST Bond Index (VSCSX) 0.66 (23) 0.89 (15) 0.75 (39) -0.75 (32) 0.48 (42) 1.32 (42) Barclays US Corp 1-5 Yr Index 0.76 (12) 0.93 (13) 0.94 (15) -0.81 (35) 0.52 (36) 1.39 (30) IM U.S. Intermediate Investment Grade (MF) Median 0.53 0.69 0.70 -1.00 0.42 1.24 35 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 E 8.00 5.00 2.00 0 O 0 O -1.00 -4.00 J 29.00 26.00 23.00 20.00 17.00 14.00 of ■ 11.00 O 8.00 • O 5.00 2.00 1.00 Performance Review American Core RE As of December 31. 2017 36 uz� Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • American Core RE 1.73 (87) 1.73 (87) 8.08 (58) 7.59 (87) 10.12 (80) 10.49 (84) 10.87 (86) • American Core RE 7.52 (69) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) 11.56 (68) O American Core RE Policy 2.15 (50) 2.15 (50) 7.80 (62) 8.53 (61) 10.70 (57) 11.09 (64) 11.54 (74) O American Core RE Policy 7.81 (62) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) Median 2.13 2.13 8.52 8.92 10.93 11.51 12.20 Median 8.30 11.32 15.45 12.78 13.18 12.90 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 American Core RE 1.88 (45) 1.97 (42) 2.27 (30) 1.20 (81) 1.83 (71) 1.26 (94) American Core RE Policy 1.89 (45) 1.71 (71) 1.83 (53) 2.16 (57) 2.18 (50) 2.18 (62) IM U.S. Open End Private Real Estate (SA+CF) Median 1.76 1.91 1.91 2.26 2.16 2.54 36 uz� 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over Performance w 14.0 rr v • �j 12.0 U . x10.0 E a 8.0 8.0 10.0 12.0 American Core RE Policy (%) • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 11.20 Performance Review American Core RE As of December 31. 2017 10.64 0 «' 10.36 v rr • 10.08 9.80 1.44 1.53 1.62 1.71 1.80 1.89 1.98 2.07 Risk (Standard Deviation %) Return Standard Deviation 1p American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 12.76 12.32 11.88 «' 11.44 O v rr 11.00 10.56 1.20 1.40 0 (0%) 0 (0%) 6 (30%) 14 (70%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 0 1.60 1.80 2.00 Risk (Standard Deviation %) Return Standard Deviation J 2.20 • American Core RE 3 Yr Rolling Percentile Ranking - 5 Years 1.94 • American Core RE 10.87 y A rr w 0.0 25.0 10.70 1.50 O American Core RE Policy 11.54 v 50.0 10.93 1.88 Median 12.20 1.96 Historical Statistics - 3 Years o 0 X88°°ae8oe8°o° 75.0 ° Up Down ° o Downside Error Market Market Alpha Ratio Ratio Beta rr Capture Capture 100.0 1.09 94.87 N/A -1.26 -0.48 4.58 Under 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 6.04 Performance 0.00 Historical Statistics - 5 Years 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 14.0 16.0 Tracking 5-25 25 -Median Median -75 75-95 Sharpe Downside Total Period Count Count Count Alpha Count 10.64 0 «' 10.36 v rr • 10.08 9.80 1.44 1.53 1.62 1.71 1.80 1.89 1.98 2.07 Risk (Standard Deviation %) Return Standard Deviation 1p American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 12.76 12.32 11.88 «' 11.44 O v rr 11.00 10.56 1.20 1.40 0 (0%) 0 (0%) 6 (30%) 14 (70%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 0 1.60 1.80 2.00 Risk (Standard Deviation %) Return Standard Deviation J 2.20 • American Core RE 10.12 1.94 • American Core RE 10.87 1.70 O American Core RE Policy 10.70 1.50 O American Core RE Policy 11.54 1.35 Median 10.93 1.88 Median 12.20 1.96 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.09 94.87 N/A -1.26 -0.48 4.58 1.07 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 6.04 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 94.45 N/A -0.41 -0.58 5.69 0.98 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 7.34 1.00 0.00 37 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 E 8.00 d 5.00 2.00 -1.00 -4.00 29.00 26.00 23.00 20.00 17.00 d14.00 Er 11.00 8.00 5.00 2.00 -1.00 Performance Review Intercontinental As of December 31. 2017 38 uz� Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Intercontinental 2.75 (16) 2.75 (16) 8.69 (47) 10.90 (21) 12.17 (26) 12.59 (27) 13.48 (26) • Intercontinental 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) 13.38 (43) O NCREIF Fund Index 2.07 (64) 2.07 (64) 7.62 (67) 8.19 (72) 10.42 (74) 10.94 (76) 11.53 (74) O NCREIF Fund Index 7.66 (65) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) Median 2.13 2.13 8.52 8.92 10.93 11.51 12.20 Median 8.30 11.32 15.45 12.78 13.18 12.90 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Jun -2016 Intercontinental 2.53 (14) 1.43 (87) 1.71 (55) 5.71 (1) 3.88 (3) 1.87 (80) NCREIF Fund Index 1.87 (46) 1.70 (72) 1.77 (54) 2.11 (61) 2.07 (58) 2.13 (64) IM U.S. Open End Private Real Estate (SA+CF) Median 1.76 1.91 1.91 2.26 2.16 2.54 38 uz� 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over Performance 16.0 70 oa o 00 o w 14.0 O O 00 O O r 0 0 12.0 X 2 U! .E 10.0 8.0 8.0 10.0 12.0 14.0 NCREIF Fund Index (%) OOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 12.98 12.39 11.80 «' 11.21 v Performance Review Intercontinental As of December 31. 2017 3 Yr Rolling Percentile Ranking - 5 Years 12.17 3.12 • Intercontinental y 0.0 2.92 O NCREIF Fund Index 10.42 1.53 O NCREIF Fund Index 11.53 A v 25.0 0Is0 00 00 00 OO OO O v 00 0 Down 50.0O Sharpe Downside Error Market Market 0 Ratio Ratio Beta 00000000 0 0 0 O O E 75.0 0 N/A 5.73 0.54 O 0 0 0 O O! rr N/A 0.00 N/A 5.82 1.00 0.00 Historical Statistics - 5 Years 100.0 Tracking Up Down Information Under Downside Error Market Market Alpha Ratio Ratio Beta Performance 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 12/17 16.0 18.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 0 10.62 O 10.03 0.96 1.28 1.60 1.92 2.24 2.56 2.88 3.20 3.52 Risk (Standard Deviation %) Return Standard Deviation lb Intercontinental 18 O NCREIF Fund Index 20 Peer Group Scattergram - 5 Years 13.86 13.20 12.54 «' 11.88 11.22 0 10.56 0.90 1.20 1.50 5 (28%) 13 (72%) 0(0%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 1.80 2.10 2.40 Risk (Standard Deviation %) Return 0 2.70 3.00 Standard Deviation 3.30 • Intercontinental 12.17 3.12 • Intercontinental 13.48 2.92 O NCREIF Fund Index 10.42 1.53 O NCREIF Fund Index 11.53 1.44 Median 10.93 1.88 Median 12.20 1.96 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.03 116.45 N/A 5.73 0.54 3.57 0.61 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 5.82 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.64 116.41 N/A 3.25 0.69 4.24 0.87 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 6.94 1.00 0.00 39 uz� Private Equity Fund Overview Crescent Direct Lending Fund As of December 31, 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: $2,000,000 Capital Invested: $2,614,605 Management Fees: $913 Expenses: $105,395 Interest: - Total Contributions: $2,614,605 Remaining Capital Commitment: $623,375 Cash Flow Analysis $3,510,000.0 $2,808,000.0 $2,106,000.0 Total Distributions: $1,453,397 $1,404,000.0 Market Value: $1,412,680 Inception Date: 10/14/2014 $702,000.0 Inception IRR: 7.4 NPI: 1.1 $0.0 ($702,000.0) 10/14 1/15 4/15 7/15 10/15 1/16 4/16 7/16 10/16 1/17 4/17 7/17 10/17 1/18 — Net Asset Value Distribution Contributions 40 Total Fund Policy Allocation Mandate Jan -1976 S&P 500 Index Bloomberg Barclays U.S. Aggregate Index MSCI EAFE Index Oct -2003 S&P 500 Index Bloomberg Barclays U.S. Aggregate Index MSCI EAFE Index Sep -2006 S&P 500 Index Bloomberg Barclays Intermed Aggregate Index Oct -2009 Russell 3000 Index Bloomberg Barclays Intermed Aggregate Index MSCI EAFE Index Bloomberg Barclays U.S. TIPS Index NCREIF Property Index Oct -2010 Russell 3000 Index Bloomberg Barclays Intermed Aggregate Index MSCI EAFE Index Bloomberg Barclays U.S. TIPS Index NCREIF Fund Index -Open End Diversified Core (EW) Vanguard Total Stock Market Policy Allocation Mandate Jun -2003 MSCI US Broad Market Index Feb -2013 CRSP U.S. Total Market TR Index Benchmark Historical Hybrid Compositions Total Fund As of December 31, 2017 Total Equity Policy ht (%) Allocation Mandate Weight (%) 41 2 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 -2000 Bloomberg Barclays U.S. Aggregate Index 100.00 Sep -2006 Bloomberg Barclays Intermed Aggregate Index 100.00 ,ight (%) American Realty Policy 100.00 Allocation Mandate Weight (%) Oct -2007 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -Open End Diversified Core (EW) 100.00 41 2 Compliance Checklist Total Fund Winter Springs GE As of December 31, 2017 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher.— 0.41 of bonds is rated BB, since this is below the threshold of 1. marked in compliance Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. 42 Vanguard Total RBC Global Galliard 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 Vanguard Total Stock Market (VITSX) Total Domestic Equity RBC Global (Voyageur) Total International Equity Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Domestic Fixed Income Crescent Direct Lending Fund Total Other Fixed Income Intercontinental American Core Realty Fund Total Real Estate Receipt & Disbursement Total Fund Estimated Annual Fee (°yo ) 0.04 0.04 0.95 0.95 0.25 0.15 0.12 0.20 1.35 1.35 1.10 1.10 1.10 0.37 43 Market Value 26,777,576 26,777,576 8,778,386 8,778,386 4,746,117 1,235,959 117,161 7,505,587 1,412,680 1,412,680 3,062,622 2,025,745 5,088,367 472,631 50,035,227 Winter Springs General Employees General Plan and Trust Fee Analysis As of December 31, 2017 Estimated Annual Fee 10,711 10,711 83,395 83,395 11,865 1,854 141 15,266 19,071 19,071 33,689 22,283 55,972 184,415 Fee Schedule 0.04 % of Assets 0.95 % of Assets 0.25 % of Assets 0.15 % of Assets 0.12 % of Assets 1.35 % of Assets 1.10 % of Assets 1.10 % of Assets 3 Disclosures Total Fund As of December 31, 2017 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. 44 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 (NPI) The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund's life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. 45 Disclosures 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. 46 Putting clients first. AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom