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HomeMy WebLinkAbout2018 05 10 Regular 500 Quarterly Investment ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 500 May 10, 2018 Regular Meeting REQUEST: Informational Consent Public Hearings Regular I X Mgr. / Authorization Dept. The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From AndCo Consulting The Second Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Return Report (46 Pages) Investment Performance Review Period Ending March 31, 2018 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom 1st Quarter 2018 Market Environment Market returns were broadly negative across major equity and fixed income indices as we finished a highly volatile 1St quarter of 2018. Broad domestic and international equity markets pulled back modestly following a very strong 2017. Fixed income indices also posted negative results, producing returns in-line with those of equities during the quarter. However, when viewed over the past 1 -year period, returns remain positive for major indices as improving macroeconomic data and robust corporate earnings worldwide outweighed the near-term market uncertainty. The US stock market represented by the Russell 3000 Index returned -0.6% and 13.8% for the quarter and 1 -year period respectively. While the Russell 3000 outperformed the international MSCI ACWI ex US Index during the 1St quarter, international stocks have performed better over the last 12 months. While the US economy continues to show signs of expansion, investors focused on the future path of Federal Reserve (Fed) monetary policy and the emergence of new protectionist trade policies from the Trump administration during the quarter. International equity market benchmarks were mixed with developed markets posting modestly negative returns and emerging markets earning a slightly positive result. This is a continuation of the 2017 trend of emerging market outperformance relative to developed market equities. Emerging market stocks returned 1.4% and 24.9% over the quarter and 1 -year period respectively. While the developed market MSCI EAFE Index lost ground through the 1St quarter, returning -1.5%, it still posted solid gains over the 1 -year period returning 14.8%, narrowly outpacing major US indices. The strength in fundamentals abroad, ongoing US Dollar (USD) weakness and relatively accommodative global central bank policies continue to act as a tailwind to international markets relative to their US counterparts. Consequently, as the global recovery continues to take hold, international central banks have started to telegraph a greater likelihood of reduced stimulus in the future. Many international markets also saw their returns influenced, both positively and negatively, by ongoing political developments throughout the quarter. Interest rates on the US Treasury Yield Curve ended the 1St quarter of 2018 higher across all maturities. The movement in rates was considerable during the quarter as markets reacted to the greater likelihood of increasing inflation and a more restrictive than expected US monetary policy going forward. The Fed followed suit by increasing short-term interest rates by 25 basis points at their March meeting, the third increase in the last 12 months. The rising interest rate environment negatively impacted fixed income market returns for the quarter. The Bloomberg Barclays US Aggregate Index fell -1.5% for the quarter, but managed a positive 1.2% return for the 1 -year period. Corporate credit reversed its 2017 trend of outperformance relative to other investment grade sectors returning -2.3% during the 1St quarter as credit spreads began to widen. 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 March 31, 2018 Quarter Performance -1.2% 1.4% -0.8% .6% -0.7% -0.5% -0.1 -0.8% -1.2% -2.3% 0.3% -3.0% -2.0% MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill 1 -Year Performance 1.0% 0.0% 1.0% 2.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% l� Source: Investment Metrics 2 US equity index returns were mixed across the style and capitalization spectrum to start 2018 with growth indices being the best performers. Markets were highly volatile throughout the quarter. Investors initially cheered the passage of the republican party tax reforms containing reductions to both individual and corporate income tax rates, increasing expectations for consumer spending and corporate earnings going forward. However, high US wage growth in January raised investor concerns that inflation could be picking up more quickly than the market expected, and would therefore require increased Fed action to prevent overheating of the economy. Market volatility rose and the S&P 500 Index had its first correction since 2015, falling over 10%. The market began a recovery from its February low as later economic releases made it appear that fears over inflation had likely been overstated. However, volatility returned in March when the Trump administration announced a series of protectionist tariff policies, with emphasis placed on China, increasing the potential for a global trade war. Despite the considerable market volatility, most US economic data was positive during the quarter and congress passed a new federal budget deal that will increase government spending by about $300 billion over the next two years which can be used to stimulate the economy over the short-term. During the quarter, small cap stocks outperformed mid and large cap equities. The small cap Russell 2000 Index returned -0.1% during the period, while the large cap Russell 1000 Index returned -0.7%. The opposite was true over the 1 -year period as large cap names were the best performers. The Russell 1000 returned 14.0% over the trailing year while the Russell 2000 posted a return of 11.8%. This large cap outperformance can be partially explained by their greater 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. Large cap companies 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 fifth straight quarter and were all able to post a positive return for the 1St quarter of 2018. Performance for growth indices more than doubled value index performance for each respective cap segment for the year. 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. 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 March 31, 2018 Quarter Performance - Russell Style Series -2.8% -0.6% 1.5% -2.8% -0.7% 1.4% -2.5% -0.5% 2.2% -2.6% -0.1 olo 2.3% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% l � Source: Investment Metrics 3 Sector performance was largely negative across large cap sectors for the 1St quarter of 2018. Only two of eleven sectors had positive returns for the quarter and only three of eleven economic sectors outpaced the Russell 1000 Index return. Cyclical sectors tended to do well through the quarter with the higher Consumer Disc (12.8%) yielding bond proxy sectors lagging on a relative basis as interest rates rose sharply during the period. Technology stocks continued their 2017 gains over consumer staples (7.4%) the quarter, gaining 3.9% and consumer discretionary stocks performed well Energy (5.7%) on the back of a strong holiday season earning a 2.4% return. The largest detractors for the quarter were the more defensive telecom services, Financials (15.0%) consumer staples and real estate sectors which returned -7.4%, -6.8% and - Health Care (13.2%) 5.9% respectively. Over the trailing 1 -year period, technology was the best performing sector by a relatively wide margin returning an impressive 28.2%. Industrials (10.6%) Consumer discretionary and financials also returned greater than 15%. Seven of eleven large cap economic sectors posted positive returns for the 1 -year Info Technology (24.0%) period with six posting double digit returns. Telecom services was the largest Materials (3.3%) underperformer losing -5.3%. The three other sectors with negative returns for the trailing year (real estate, energy and consumer staples) fell by less than Real Estate (3.4%) 1.0%. Telecom Services (1.9%) Russell 1000 -6.8% 0.8% -5.8% � -0.4% -0.6% -0.9% -1.7% -5.5% C -5.9% o.o 7.4% -5.3%3 The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2018 ■Quarter LA -Year 2.4% 16.5% 17.5% 11.4% 14.5 3.9% 28.2% 10.4% Small cap sector results were mixed relative to their large capitalization Utilities (2.8%) -3.�% counterparts. Only three of eleven economic sectors outpaced the Russell 2.5% 2000 Index return for the quarter and posted positive results for the period -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Like the large cap index sector performance, higher dividend yielding sectors -2.7% also tended to trail more economically sensitive sectors. Technology was the best performing sector returning 6.4%. However, there were several notable Consumer Disc (12.4%) differences, particularly in consumer discretionary and energy where there was significant underperformance relative to their large cap counterparts. Small Consumer Staples (2.6%) cap sectors trailed large cap sectors in those two categorizations by over 5.0% Energy (3.8%) during the quarter. Similarly, the small cap health care sector had much -19.1 % stronger performance than the large cap health care sector posting a 6.2% Financials (17.9%) gain for the quarter. Over the 1 -year period, nine of eleven sectors have posted gains with four of eleven sectors having returns greater than 10%. Health care (16.0%) Health care stocks were the best performers within the Russell 2000 for the Industrials (15.5%) year returning a solid 28.0%. Energy and real estate were the only Russell -3.0% 2000 sectors to post a negative return, falling -19.1 % and -4.1 % respectively. Info Technology (16.9%) 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 utilities, materials and energy sectors appear the most extended. In contrast the telecommunications, technology and health care sectors were trading at a discount to their long- term average P/E ratios. Source: Morningstar Direct Materials (4.5%) Real Estate (6.4%) Telecom Services (0.7%) Utilities (3.3%) Russell 2000 11.0% 1% 20.0% 25.0% 30.0% ■Quarter 01 -Year 17 -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%^^ l 4 -2.7% -5.4% 0.5% -11.5% -19.1 % 0.9% 6.2 °G -2.5% 6.4° -3.0% 7. -8.1% -4.1 % -4.5% 7.1 -6.4% L -k 2.3% 11.0% 1% 20.0% 25.0% 30.0% ■Quarter 01 -Year 17 -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%^^ l 4 Russell 1000 Apple Inc Top 10 Weighted Weight 3.41% Stocks 1 -Qtr Return -0.5% 1 -Year Return 18.6% Sector Information Technology Microsoft Corp 2.74% 7.2% 41.5% Information Technology Amazon.com Inc 2.33% 23.8% 63.3% Consumer Discretionary Berkshire Hathaway Inc B 1.54% 0.6% 19.7% Financials JPMorgan Chase & Co 1.52% 3.4% 28.0% Financials FacebookInc A 1.51% -9.4% 12.5% Information Technology Johnson & Johnson 1.38% -7.7% 5.5% Health Care Exxon Mobil Corp 1.27% -9.9% -5.5% Energy Alphabet Inc C 1.25% -1.4% 24.4% Information Technology Alphabet Inc A 1.24% -1.5% 22.3% 1 Information Technology ITop Lsell 000 10 Performing Weight Stocks (by Quarter) 1 -Year Sector XL Group Ltd 0.06% 57.8% 41.6% Financials Abiomed Inc 0.05% 55.3% 132.4% Health Care Netflix Inc 0.48% 53.9% 99.8% Consumer Discretionary Validus Holdings Ltd 0.02% 44.6% 23.1% Financials Herbalife Ltd 0.02% 43.9% 67.6% Consumer Staples Agios Pharmaceuticals Inc 0.02% 43.0% 40.0% Health Care Match Group Inc 0.01% 41.9% 172.1% Information Technology Square Inc A 0.05% 41.9% 184.7% Information Technology CSRA Inc 0.03% 38.6% 43.0% Information Technology DST Systems Inc 0.02% 34.8% 37.9% Information Technology 000 Stocks (by e tr rn Quarter) 1 -Year Return Sector Colony NorthStar Inc A 0.01% -49.8% -52.7% Real Estate Weatherford International PLC 0.01% -45.1% -65.6% Energy Akorn Inc 0.01% -41.9% -22.3% Health Care Universal Display Corp 0.02% -41.5% 17.4% Information Technology Macquarie Infrastructure Corp 0.01% -40.3% -49.7% Industrials Patterson Companies Inc 0.01% -38.0% -49.6% Health Care Mallinckrodt PLC 0.01% -35.8% -67.5% Health Care L Brands Inc 0.04% -35.8% -14.5% Consumer Discretionary OPKO Health Inc 0.00% -35.3% -60.4% Health Care Coherent Inc 0.02% -33.6% -8.9% Information Technology The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2018 A- goes bluebird bio Inc 0.52% -4.1% 87.8% Health Care MGIC Investment Corp 0.49% -7.9% 28.3% Financials Sterling Bancorp 0.49% -8.1% -3.7% Financials Wintrust Financial Corp 0.49% 4.7% 25.5% Financials Umpqua Holdings Corp 0.48% 3.9% 25.1% Financials Idacorp Inc 0.45% -2.7% 9.2% Utilities Hancock Holding Co 0.44% 4.9% 15.8% Financials Livallova PLC 0.44% 10.7% 80.6% Health Care WGL Holdings Inc 0.44% -2.0% 3.8% Utilities Radian Group Inc 0.42% -7.6% 6.1% 1 Financials Top 10 Russell 2000 Atara Biotherapeutics Inc Performing Weight 0.13% Stocks (by 1 -Qtr Return 115.5% Quarter) 1 -Year Return 89.8% Sector Health Care lovance Biotherapeutics Inc 0.12% 111.3% 126.8% Health Care Cambium Learning Group Inc 0.01% 97.2% 128.6% Consumer Discretionary G1 Therapeutics Inc 0.01% 86.7% N/A Health Care Arsanis Inc 0.00% 79.4% N/A Health Care Eastman Kodak Co 0.00% 72.6% -53.5% Information Technology American Public Education Inc 0.07% 71.7% 87.8% Consumer Discretionary Infinera Corp 0.16% 71.6% 6.2% Information Technology Novavax Inc 0.04% 69.4% 64.1% Health Care WMIH Corp 0.03% 67.2% -2.1% Financials Bottom 10 Performing Weight Stocks 1-QtrAIh Re (by Quarter) 1 -Year Sector Dermira Inc 0.01% -71.3% -76.6% Health Care Ascent Capital Group Inc A 0.00% -68.0% -74.0% Consumer Discretionary Roadrunner Transportation Systems Inc 0.01% -67.1% -63.0% Industrials Tintri Inc 0.00% -66.5% N/A Information Technology Westmoreland Coal Co 0.00% -66.1% -97.2% Energy Protagonist Therapeutics Inc 0.01% -58.7% -32.9% Health Care RAIT Financial Trust 0.00% -56.9% -94.5% Real Estate Ultra Petroleum Corp 0.08% -54.0% -67.4% Energy Melinta Therapeutics Inc 0.01% -53.2% -60.5% Health Care Tetraphase Pharmaceuticals Inc 0.02% -51.3% -66.6% Health Care l� Source: Morningstar Direct 5 Similar to domestic equities, broad international equity returns pulled back during the 1St quarter. Performance was largely driven by the same catalysts as the US equity markets, as global macroeconomic data remained generally positive. US investors in international markets had a currency effect tailwind as the USD continued its 2017 fall, weakening against most other currencies during the 1St quarter. The MSCI ACWI ex US Index lost -1.2% in USD terms and -3.1% in local currency terms. Emerging markets were a bright spot for the quarter with the MSCI Emerging Markets Index finishing with a slight gain. The returns over the 1 -year period are substantially better with MSCI ACWI ex US returning 16.5% in USD terms and 8.9% in local currency terms. Results for developed market international indices were negative to start 2018 in both USD and local currency terms with the MSCI EAFE Index returning - 1.5% and -4.3% respectively. Investors ignored broadly positive global economic data, focusing their attention on US monetary policy uncertainty and the outlook for global trade relations. There were several newsworthy political events during the quarter. In Europe, Italian elections resulted in a hung parliament with the populist Five Star Movement winning the largest number of seats. There is currently no clear path for a coalition government to be formed and it is possible elections may need to be re -held. In contrast, German Chancellor Merkel succeeded in forming a "grand coalition" government during March. In the UK, continued progress was made on "Brexit" as the UK and European Union were able to agree to initial terms on a transition period following the UK's separation that should allow for an orderly withdrawal. In Japan, Prime Minister Abe was engulfed in a scandal regarding a discounted land sale to a school operator with ties to his wife and its subsequent coverup. The MSCI EAFE Index returned 14.8% and 5.3% for the last twelve months in USD and local currency terms respectively. The MSCI Emerging Market Index outperformed developed markets for the 1St quarter, posting a narrow gain of 1.4% and 0.7% in USD and local currency terms respectively. While emerging markets were also affected by the rise in global market volatility, strong GDP and corporate earnings growth combined with USD weakness helped them to finish the quarter ahead. China modestly outperformed despite late quarter trade tensions with the US. Brazil was the index's strongest performer, returning 12.4% in USD terms, after former President Lula da Silva had a corruption and money laundering conviction upheld, likely preventing him from running for office again and opening the door for future economic reforms. Russian equities also performed well after Standard & Poor's raised the countries credit rating to investment grade for the first time in over a decade citing prudent policy responses to sanctions and falling commodity prices. Indian stocks underperformed after fraud allegations emerged at a state-run bank. One year returns for the MSCI Emerging Market Index were 24.9% in USD terms and 22.0% in terms of local currencv. The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2018 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 IoUSD ❑Local Currency -3.1% -2.0% -4.3% -1.5% -4.3% -2.0% -4.4% 0.7% 1.4% 0.7% -0.9 .9% 0.8°/ 0.6% 8.0% 6.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1 -Year Performance I■USD ❑Local Currency AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% l� Source: MSCI Global Index Monitor (Returns are Net) 6 16.5% 14.8% 4.3% 15.8% 24.9% 8.9% 13.9% 5.0% 5.3 1.9% 11.9% 22.0°x° 20.1% 12.0% 27.0°x° 24.7% 9.3% 20.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% l� Source: MSCI Global Index Monitor (Returns are Net) 6 MSCI-EAFE Consumer Discretionary Sector Weight 12.6% Quarter Return 0.7% 1 -Year Return 19.2% Consumer Staples 11.1% -3.0% 10.4% Energy 5.3% -2.0% 21.4% Financials 21.1% -2.2% 13.6% Health Care 10.2% -0.9% 7.0% Industrials 14.6% -1.5% 17.4% Information Technology 6.6% 1.1% 26.2% Materials 8.0% -3.8% 19.8% Real Estate 3.5% -1.5% 13.1% Telecommunication Services 3.8% -3.9% 3.1% Utilities Total 3.3% rrr , 1.3% 12.1% V '111 Consumer Discretionary 9.5% -6.1% 16.5% Consumer Discretionary 11.4% -1.0% 18.6% Consumer Staples 9.5% -2.8% 11.0% Energy 6.7% -1.8% 15.4% Financials 23.1% -1.1% 15.9% Health Care 7.7% -0.3% 9.1% Industrials 11.8% -1.6% 16.3% Information Technology 11.8% 1.8% 34.3% Materials 8.0% -2.9% 18.4% Real Estate 3.2% -1.7% 16.5% Telecommunication Services 3.9% -4.1% 3.6% Utilities 3.0% 1.2% 10.9% Consumer Discretionary 9.5% -6.1% 16.5% Consumer Staples 6.4% -0.8% 15.8% Energy 7.2% 7.5% 24.7% Financials 24.0% 4.2% 25.6% Health Care 2.8% 7.0% 34.6% Industrials 5.2% -0.8% 10.1% Information Technology 27.8% 2.1% 40.1% Materials 7.3% 0.7% 20.0% Real Estate 2.8% -2.1% 32.5% Telecommunication Services 4.6% -3.7% 4.5% Utilities Total 2.4% 100 .0% 3.0% 9.2% The Market Environment US Dollar International Index Attribution & Country Detail As of March 31, 2018 Country ML Weight Weight Weyt urn9v Japan 24.6% 16.8% 0.8% United Kingdom 17.3% 11.8% -3.9% 11.9% France 10.9% 7.5% 0.3% 20.4% Germany 9.7% 6.6% -3.6% 13.6% Switzerland 7.8% 5.3% -4.3% 8.2% Australia 6.6% 4.5% -6.2% 1.4% Netherlands 3.7% 2.5% 1.0% 19.9% Hong Kong 3.6% 2.5% -1.4% 18.4% Spain 3.2% 2.2% -1.7% 8.8% Sweden 2.7% 1.8% -2.4% 7.6% Italy 2.5% 1.7% 5.4% 27.5% Denmark 1.8% 1.2% -1.5% 25.1% Singapore 1.4% 0.9% 2.8% 22.8% Belgium 1.1% 0.8% 0.5% 13.3% Finland 1.0% 0.7% 8.2% 23.5% Norway 0.7% 0.5% 2.3% 29.3% Ireland 0.5% 0.3% -5.9% 7.2% Israel 0.5% 0.3% -5.3% -8.4% Austria 1 0.3% 0.2% 2.2% 1 48.5% New Zealand 0.2% 0.1% -5.1% 4.0% Portugal 0.2% 0.1% 3.1% 17.9% Canada Total rr- China 6.2% 7.6% -7.4% r 1.8% 4.9% 38.9% Korea 3.9% -0.5% 25.4% Taiwan 3.0% 5.7% 20.6% India 2.1% -7.0% 10.2% Brazil 1.9% 12.4% 26.4% South Africa 1.7% -4.2% 25.0% Russia 0.9% 9.4% 20.6% Mexico 0.7% 0.9% 0.9% Malaysia 0.6% 8.5% 25.3% Thailand 0.6% 9.0% 35.0% Indonesia 0.5% -7.2% 7.8% Chile 0.3% 1.5% 24.5% Poland 0.3% -8.2% 20.7% Philippines 0.3% -11.6% 3.8% Turkey 0.3% -5.0% 18.6% United Arab Emirates 0.2% -1.0% -0.4% Qatar 0.1% 2.5% -11.0% Colombia 0.1% 4.9% 15.4% Peru 0.1% 10.3% 44.7% Greece 0.1% -6.8% 24.3% Hungary 0.1% -1.0% 38.6% Czech Republic 0.1% 6.4% 36.4% Egypt 0.0% 10.9% 14.5% Pakistan 0.0% 11.4% -14.0% n Source: MSCI Global Index Monitor (Returns are Net in USD) 7 Broad fixed income benchmarks were mostly negative during the 1St quarter, with international bonds being the exception. Early in the quarter, particularly strong January wage growth report caused investors to speculate that inflation was quickly increasing and that the Fed would need to tighten monetary policy to a greater degree than originally planned. This sent a shock through financial markets and caused interest rates to rise considerably. Economic releases later in the quarter showed that the fear of inflation was most likely overstated. Later in the quarter, the Federal Open Market Committee (FOMC), led by new Fed Chair Jerome Powell, decided to increase short-term interest rates by 25 basis points. The current Fed Funds Rate target sits at 1.50% - 1.75%. This rate increase was expected by the market and, importantly, the Fed did not change its plan for further rate increases for 2018. Concerns over new Treasury issuance needed to finance plans for increased fiscal spending also could have contributed to the rise in interest rates. The yield curve flattened through the quarter as short-term yields rose at a greater rate than longer-term yields. The Bloomberg Barclays US Aggregate Index fell -1.5% the quarter, but managed a positive 1.2% return for the trailing year. Within investment grade credit, higher quality corporate issues generally outperformed lower quality issues for the quarter as credit spreads widened and investors looked for safety amid increased financial market volatility. AAA rated credit was the best performing investment grade credit quality segment returning -1.2% for the quarter. Interestingly, high yield debt outperformed relative to investment grade credit, returning -0.9%, as spreads widened to a lesser degree for these issues and the index benefitted from a lower duration. Part of the reason for the increased spread widening for investment grade issues relative to high yield issues was selling pressure from companies repatriating foreign cash reserves in response to the new tax code. When viewed over the 1 -year period, lower quality issues have advanced to a greater degree, partly due to the continued strength in the global economy. High yield debt returned 3.8% over the period whereas AAA rated issues returned 0.6%. US Treasury securities were the best performing investment grade sector through the quarter, narrowly outperforming US mortgage backed securities (MBS). This reversed the trend of corporate credit outperformance that was witnessed through 2017 as investors reacted to market volatility and moved into higher quality government issues. The Bloomberg Barclays US Corporate IG Index returned -2.3% for the quarter as widening credit spreads and a higher duration acted as headwinds to these issues. US Treasury and US MBS both posted a -1.2%. However, over the trailing year, Treasury securities were the worst performing investment grade sector returning 0.4%, while US investment grade corporate bonds were the best performing investment grade sector gaining 2.7%. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of March 31, 2018 AAA (5.6) AA (5.9) A (7.5) Baa (7.7) U.S. High Yield (4.1) U.S. Treasury (6.1) U.S. Mortgage (5.0) U.S. Corporate IG (7.5) U.S. TIPS (5.0) Aggregate (6.1) Intermediate Agg (4.4) Global Agg x US (7.9) Multiverse (6.9) Quarter Performance -1.2% -1.4% -2.5% -2.2% -0.9% -1.2% -1.2% -2.3% -0.8% 1.1% 3.6% 1.3% -3.0% -2.0% -1.0% 0.0% AAA (5.6) AA (5.9) A (7.5) Baa (7.7) U.S. High Yield (4.1) U.S. Treasury (6.1) U.S. Mortgage (5.0) U.S. Corporate IG (7.5) U.S. TIPS (5.0) Aggregate (6.1) Intermediate Agg (4.4) Global Agg x US (7.9) Source: Bloomberg 8 Multiverse (6.9) 1 -Year Performance 1.0% 2.0% 3.0% 4.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% In contrast to their domestic counterparts, global fixed income indices 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 would have acted as a headwind in the current quarter as interest rates increased, 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 partially due to a currency effect tailwind caused by a weakening USD. Returns on global bonds represented by the Bloomberg Barclays Global Aggregate ex US Index were 3.6% and 11.7% for the 1St quarter and trailing twelve months respectively. As the global economy continues to recover, several international central banks have started to move toward a less accommodative posture. Notably, the ECB, has extended its current quantitative easing program well into 2018, but has reduced the amount of monthly asset purchases from 60 billion euro per month to 30 billion euro per month. They also signaled that they would end the program entirely if the eurozone recovery continues to flourish. Similarly, the Bank of Japan (BoJ) inferred that they could end their quantitative easing program sometime in 2019 if target metrics were met. Lastly, the BoE voted to raise interest rates for the first time in a decade during the 4t" quarter of 2017 and indicated rates may rise again more quickly than expected. Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The 1 -Year Trailing Market Rates' chart illustrates that the 10 -year Treasury yield (green line) rose significantly during the 1St quarter, rising from 2.40%, to a peak of 2.94%, before falling to 2.74% to end the period. 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. However, the trend begins to reverse in early February. This increase is equivalent to an interest rate increase on corporate bonds, which produces a headwind for corporate bond index returns. These credit spreads have widened by about 17 basis points over the last 3 -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 US 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 more than interest rates on the long end of the curve. The significant upward shift in interest rates that occurred in the 1St quarter 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 March 31, 2018 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury _10yr TIPS 0.00 I r3%. _Pg2lmr Mar -17 Apr -17 May -17 Jun -17 Jul -17 Aug -17 Sep -17 Oct -17 Nov -17 Dec -17 Jan -18 Feb -18 Mar -18 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Source: US Department of Treasury FRED (Federal Reserve of St. Louis) 9 Treasury Yield Curve X6/30/2017 X9/30/2017 o -12/31/2017 X3/31/2018 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Asset Allocation By Segment as of December 31, 2017 : $6090699802 Asset Allocation Summary Total Fund As of March 31. 2018 Asset Allocation By Segment as of March 31, 2018 : $4998919301 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 26,777,576 53.5 _ Domestic Equity 24,492,747 49.1 m International Equity 8,778,386 17.5 m International Equity 8,653,602 17.3 ■ Domestic Fixed Income 7,500,928 15.0 ■ Domestic Fixed Income 6,911,364 13.9 ■ Global Fixed Income - 0.0 ■ Global Fixed Income 1,806,710 3.6 ■ Other Fixed Income 1,447,255 2.9 ■ Other Fixed Income 1,943,974 3.9 7 Real Estate 5,064,001 10.1 7 Real Estate 5,159,344 10.3 Cash Equivalent 501,656 1.0 Cash Equivalent 923,559 1.9 10 Asset Allocation By Manager as of December 31, 2017 : $5090699802 Allocation Market Value Allocation Allocation Asset Allocation By Manager as of March 31, 2018 : $4998919301 Asset Allocation Summary Total Fund As of March 31. 2018 Market Value Allocation Vanguard Total Stock Market (VITSX) 26,777,576 53.5 Vanguard Total Stock Market (VITSX) 24,492,747 49.1 RBC Global (Voyageur) 8,778,386 17.5 RBC Global (Voyageur) 8,653,602 17.3 Galliard Core Fixed Income 4,746,117 9.5 Galliard Core Fixed Income 4,699,798 9.4 Intercontinental 3,062,622 6.1 Intercontinental 3,143,321 6.3 ■ American Core Realty Fund 2,025,745 4.0 ■ American Core Realty Fund 2,040,417 4.1 Crescent Direct Lending Fund 1,447,255 2.9 Crescent Direct Lending Fund 1,943,974 3.9 Vanguard Inflation -Protected Secs (VAIPX) 1,406,350 2.8 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,806,710 3.6 Galliard TIPS 1,235,959 2.5 Galliard TIPS 1,210,986 2.4 Receipt & Disbursement 472,631 0.9 Vanguard Inflation -Protected Secs (VAIPX) 989,601 2.0 Vanguard Short Term Bond Index (VSCSX) 117,161 0.2 Receipt & Disbursement 893,528 1.8 ■ PIMCO Diversified Income Fund Instl (PDIIX) - 0.0 Vanguard Short Term Bond Index (VSCSX) 16,616 0.0 Asset Allocation vs. Target Allocation Total Domestic Equity -0.9% Total International Equity Total Domestic Fixed Income -1.1 % Total Global Fixed Income -1.4% Total Real Estate Total Other Fixed Income -1.1 % Receipt & Disbursement -3.5 % -2.8% -2.1 % -1.4% -0.7% 0.0% Allocation Differences Asset Allocation vs. Target Allocation Market Value 0.4% 0.7% 1.4% Asset Allocation vs. Target Allocation Total Fund As of March 31, 2018 2.3% 2.8% 3.5% 4.2% 12 $ Allocation (%) Target (%) Total Domestic Equity 24,492,747 49.1 50.0 Total International Equity 8,653,602 17.3 15.0 Total Domestic Fixed Income 6,917,001 13.9 15.0 Total Global Fixed Income 1,806,710 3.6 5.0 Total Real Estate 5,183,738 10.4 10.0 Total Other Fixed Income 1,943,974 3.9 5.0 Receipt & Disbursement 893,528 1.8 0.0 Total Fund 49,891,301 100.0 100.0 12 Historical Asset Allocation by Portfolio Total Equity Total Domestic Equity Vanguard Total Stock Market (VITSX) Total International Equity RBC Global (Voyageur) Total Fixed Income Total Domestic Fixed Income Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Vanguard Inflation -Protected Secs (VAIPX) Total Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Mar -2018 32,193,323 67.51 33,146,350 66.44 24,492,747 49.09 24,492,747 49.09 8,653,602 17.34 8,653,602 17.34 10,667,685 21.38 6,917,001 13.86 4,699,798 9.42 1,210,986 2.43 16,616 0.03 989,601 1.98 1,943,974 3.90 1,943,974 3.90 5,183,738 10.39 2,040,417 4.09 3,143, 321 6.30 893,528 1.79 49,891,301 100.00 Dec -2017 32,193,323 67.51 35,555,962 71.01 26,777,576 53.48 26,777,576 53.48 8,778,386 17.53 8,778,386 17.53 8,952,842 17.88 7,505,587 14.99 4,746,117 9.48 1,235,959 2.47 117,161 0.23 1,406,350 2.81 1,447,255 2.89 1,447,255 2.89 5,088,367 10.16 2,025,745 4.05 3,062,622 6.12 472,631 0.94 50,069,802 100.00 13 Sep -2017 587,828 1.23 47,685,478 100.00 Asset Allocation Asset Allocation History By Portfolio As of March 31, 2018 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 Asset Allocation Asset Allocation History By Portfolio As of March 31, 2018 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 Mar -2017 29,574,360 23,378,673 23,378,673 6,195,688 6,195,688 9,891,004 8,378,543 4,665,531 1,227,188 1,100,148 1,385,676 1,512,461 1,512,461 4,887,837 2,003,854 2,883,983 615,111 44,968,312 65.77 51.99 51.99 13.78 13.78 22.00 18.63 10.38 2.73 2.45 3.08 3.36 3.36 10.87 4.46 6.41 1.37 100.00 Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 Historical Asset Allocation by Segment Total Fund October 1, 2007 To March 31, 2018 0.0 L' _ 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Other Fixed Income Real Estate Cash Equivalent 14 9/15 3/16 9/16 3/17 9/17 3/18 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of March 31, 2018 68.0 60.0 52.0 Q 44.0 36.0 0 0 28.0 0 a 20.0 Q Q 12.0 Q 4.0 Q Q -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 49.09 (24) 17.34 (46) 13.86 (94) 3.62 (75) 3.90 (78) 10.39 (19) 1.79 (36) 5th Percentile 58.25 29.06 47.05 9.56 34.01 13.69 7.64 1 st Quartile 48.50 22.60 35.12 5.23 17.66 9.98 2.30 Median 41.32 16.37 28.00 4.58 9.83 7.36 1.26 3rd Quartile 33.61 13.54 20.79 3.61 4.14 4.84 0.54 95th Percentile 21.13 7.57 13.18 0.28 1.10 2.39 0.07 l� 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31, 2018 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 01/01/2018 Transfers Fees Expenses Deprec. 03/31/2018 Total Equity 35,555,962 -2,181,648 -18,352 -1,464 159,309 -367,457 33,146,350 Total Domestic Equity 26,777,576 -2,200,000 - - 102,101 -186,929 24,492,747 Vanguard Total Stock Market (VITSX) 26,777,576 -2,200,000 - - 102,101 -186,929 24,492,747 Total International Equity 8,778,386 18,352 -18,352 -1,464 57,208 -180,528 8,653,602 RBC Global (Voyageur) 8,778,386 18,352 -18,352 -1,464 57,208 -180,528 8,653,602 Total Fixed Income 8,952,842 1,776,719 -3,430 -151 4,398 -62,693 10,667,685 Total Domestic Fixed Income 7,505,587 -520,000 -3,430 -151 4,398 -69,403 6,917,001 Galliard Core Fixed Income 4,746,117 - -3,430 - - -42,888 4,699,798 Galliard TIPS 1,235,959 -20,000 - -151 1,216 -6,038 1,210,986 Vanguard Short Term Bond Index (VSCSX) 117,161 -100,000 - 60 -605 16,616 Vanguard Inflation -Protected Secs (VAIPX) 1,406,350 -400,000 3,122 -19,871 989,601 Total Other Fixed Income 1,447,255 496,719 - - 1,943,974 Crescent Direct Lending Fund 1,447,255 496,719 - - - 1,943,974 Total Real Estate 5,088,367 -24,366 -10,496 56,366 73,867 5,183,738 American Core Realty Fund 2,025,745 -24,366 -5,627 30,021 14,644 2,040,417 Intercontinental 3,062,622 - - - -4,869 - 26,345 59,223 3,143,321 Receipt & Disbursement 472,631 429,295 776,168 -744,577 - -41,380 1,392 - 893,528 Total Fund Portfolio 50,069,802 - 776,168 -744,577 -32,278 -42,995 221,464 -356,283 49,891,301 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2017 To March 31, 2018 Financial Reconciliation Fiscal Year to Date Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2017 Transfers Fees Expenses Deprec. 03/31/2018 Total Equity 32,193,323 -765,205 -34,795 -2,680 314,676 1,441,030 33,146,350 Total Domestic Equity 25,181,638 -2,200,000 - - 232,641 1,278,469 24,492,747 Vanguard Total Stock Market (VITSX) 25,181,638 -2,200,000 - - 232,641 1,278,469 24,492,747 Total International Equity 7,011,686 1,434,795 -34,795 -2,680 82,035 162,561 8,653,602 RBC Global (Voyageur) 7,011,686 1,434,795 -34,795 -2,680 82,035 162,561 8,653,602 Total Fixed Income 9,893,096 777,313 -7,450 -21,745 32,882 -6,410 10,667,685 Total Domestic Fixed Income 8,480,416 -1,519,406 -7,450 -303 32,882 -69,137 6,917,001 Galliard Core Fixed Income 4,744,096 594 -7,450 - - -37,442 4,699,798 Galliard TIPS 1,229,296 -20,000 - -303 2,286 -292 1,210,986 Vanguard Short Term Bond Index (VSCSX) 1,117,229 -1,100,000 - 6,752 -7,365 16,616 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 -400,000 - 23,844 -24,038 989,601 Total Other Fixed Income 1,412,680 496,719 -21,442 - 56,017 1,943,974 Crescent Direct Lending Fund 1,412,680 496,719 - -21,442 - 56,017 1,943,974 Total Real Estate 5,011,230 -48,631 -25,741 - 116,207 130,673 5,183,738 American Core Realty Fund 2,021,097 -48,631 -11,213 59,973 19,191 2,040,417 Intercontinental 2,990,133 - - -14,528 - 56,234 111,482 3,143,321 Receipt & Disbursement 587,828 36,523 1,790,165 -1,455,575 - -68,869 3,457 - 893,528 Total Fund Portfolio 47,685,478 - 1,790,165 -1,455,575 -67,986 -93,295 467,222 1,565,293 49,891,301 17 3 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of March 31, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) -0.33 0 4.00 10.85 8.09 9.49 6.03 11/01/2000 Total Fund Policy -0.57 3.48 10.08 7.36 9.02 5.69 Total Fund (New Mgrs) (Net) -0.33 4.00 10.85 8.09 9.49 6.12 10/01/2007 Total Fund Policy -0.57 3.48 10.08 7.36 9.02 6.64 Total Fund (Gross) -0.27 (47) 4.14 (18) 11.14 (26) 8.42 (3) 9.82 j� 6.65 (16) 11/01/2000 Total Fund Policy -0.57 (71) 3.48 (45) 10.08 (54) 7.36 (14) 9.02 (11) 5.69 ku�, All Public Plans -Total Fund Median -0.32 3.37 10.21 6.37 7.85 5.99 Total Fund (New Mgrs) (Gross) -0.27 (47) 4.14 (18) 11.14 (26) 8.42 (3) 9.82 (3) 6.64 (9) 10/01/2007 Total Fund Policy -0.57 (71) 3.48 (45) 10.08 (54) 7.36 (14) 9.02 (11) 6.64 (9) All Public Plans -Total Fund Median -0.32 3.37 10.21 6.37 7.85 5.76 Total Equity M5.41 14.75 6.94 01/01/2001 Total Equity Policy -0.82 4.99 14.18 9.29 11.66 5.70 Total Domestic Equity -0.40 (48) 5.92 (56) 14.08 (49) 10.35 (46) 13.07 (58) 6.94 (36) 11/01/2000 Total Domestic Equity Policy -0.64 (57) 5.65 (64) 13.81 (55) 10.22 (51) 13.03 (59) 5.65 (92) IM U.S. Large Cap Core Equity (SA+CF) Median -0.44 6.14 14.02 10.23 13.32 6.55 Total International Equity -1.41 (58) 3.75 (35) 17.45 (25) 8.80 (19) 10.22 (7) 6.86 (50) 11/01/2000 MSCI EAFE Index -1.41 (58) 2.80 (62) 15.32 (50) 6.05 (59) 6.98 (59) 4.77 (99) IM International Large Cap Value Equity (SA+CF) Median -1.26 3.32 15.24 6.70 7.63 6.86 Total Fixed Income 1.59 2.52 4.83 ' 11/01/2000 Total Fixed Policy -1.05 -1.13 0.51 1.02 1.45 4.49 Total Domestic Fixed Income -0.85 (39) -0.50 (18) 0.80 (54) 1.48 (31) 1.41 (73) 4.57 (53) 11/01/2000 Total Domestic Fixed Policy -1.05 (83) -1.13 (83) 0.51 (87) 1.02 (84) 1.45 (69) 4.49 (67) IM U.S. Intermediate Duration (SA+CF) Median -0.90 -0.85 0.83 1.32 1.62 4.66 Total Real Estate 2.57 (19) 4.97 (24) 9.13 (33) 11.30 (29) 12.46 (30) 6.01 (29) 10/01/2007 NCREIF Fund Index-ODCE (VVV) 2.19 (59) 4.30 (61) 8.06 (81) 9.99 (76) 11.42 (70) 5.21 (54) IM U.S. Open End Private Real Estate (SA+CF) Median 2.23 4.53 8.62 10.38 12.13 5.22 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Parenthesized number represents pertinent peer group ranking: 1-100, best to worst. Crescent presented on IRR page. 18 Comparative Performance Trailing Returns Total Fund As of March 31, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) -0.60 (48) 5.70 (44) 13.85 (39) 10.20 (15) 13.02 (23) 13.65 (23) 03/01/2013 Vanguard Total Stock Market Index Hybrid -0.60 (48) 5.70 (44) 13.87 (38) 10.21 (15) 13.04 (23) 13.67 (23) IM U.S. Multi -Cap Core Equity (MF) Median -0.64 5.48 13.02 8.34 11.76 12.42 RBC Global (Voyageur) -1.41 (58) 3.75 (35) 17.45 (25) 8.80 (19) 10.22 (7) 4.78 (13) 11/01/2007 MSCI EAFE Index -1.41 (58) 2.80 (62) 15.32 (50) 6.05 (59) 6.98 (59) 1.64 (83) IM International Large Cap Value Equity (SA+CF) Median -1.26 3.32 15.24 6.70 7.63 2.63 Galliard Core Fixed Income -0.90 (51) -0.79 (42) 1.03 (35) 1.45 (34) 1.74 (35) 3.69 (70) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index -1.05 (83) -1.13 (83) 0.51 (87) 1.02 (84) 1.45 (69) 3.53 IM U.S. Intermediate Duration (SA+CF) Median -0.90 -0.85 0.83 1.32 1.62 3.88 Galliard TIPS -0.39 (19) 0.16 (88) 0.36 (97) 1.18 (89) 0.01 (78) 3.07 (97) 10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year -0.40 (19) 0.13 (90) 0.43 (96) 1.24 (85) -0.06 (87) 3.12 (97) IM U.S. TIPS (SA+CF) Median -0.75 0.49 0.95 1.35 0.10 3.82 Vanguard Short Term Bond Index (VSCSX) -1.03 (92) -1.08 (70) 0.46 (48) 1.40 (23) N/A 1.61 (26) 01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index -0.80 (67) -0.88 (50) 0.79 (33) 1.53 (18) 1.76 (10) 1.80 (18) IM U.S. Intermediate Investment Grade (MF) Median -0.71 -0.90 0.43 0.97 0.95 1.14 American Core Realty Fund 2.23 (50) 4.00 (82) 8.04 (85) 9.33 (82) 10.81 (75) 4.90 (82) 10/01/2007 American Core Realty Policy 2.17 (60) 4.37 (57) 8.16 (76) 10.26 (61) 11.45 (70) 7.16 IM U.S. Open End Private Real Estate (SA+CF) Median 2.23 4.53 8.62 10.38 12.13 5.22 Intercontinental 2.79 (7) 5.62 (12) 9.85 (19) 12.77 (15) 13.48 (19) 14.15 (31) 10/01/2010 NCREIF Fund Index-ODCE 2.19 (59) 4.30 (61) 8.06 (81) 9.99 (76) 11.42 (70) 12.27 (68) IM U.S. Open End Private Real Estate (SA+CF) Median 2.23 4.53 8.62 10.38 12.13 12.82 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Parenthesized number represents pertinent peer group ranking: 1-100, best to worst. Crescent presented on IRR page. 19 Comparative Performance - IRR As of March 31, 2018 Comparative Performance - IRR QTR 1 YR 3 YR 5 YR Inception Inception Date Crescent Direct Lending Fund 0.00 6.70 8.39 N/A 7.52 10/14/2014 20 Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2018 Comparative Performance Fiscal Year Returns FYTD Oct -2016 To Sep -2017 Oct -2016 To Sep -2016 Oct -2014 To Sep -2016 Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Oct -2008 To Sep -2009 Total Fund (Net) 4.00 (23) 14.10 (16) 11.16 (10) 0.33 (30) 11.86 (14) 16.72 (7) 18.96 (27) -1.17 (81) 10.67 (31) 0.70 (66) Total Fund Policy 3.48 (45) 12.89 (36) 10.64 (20) 0.55 (26) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (73) 0.33 (70) All Public Plans -Total Fund Median 3.37 20.66 12.20 29.73 9.67 -0.49 10.18 12.50 17.96 (35) 0.30 (36) 9.88 1.71 -4.36 Total Fund (New Mgrs) (Net) 4.00 (23) 14.10 (15) 11.15 (10) 0.33 (30) 11.85 (14) 15.72 (7) 18.95 (27) -1.17 (81) 10.66 (31) 0.68 (66) Total Fund Policy 3.48 (45) 12.89 (36) 10.64 (20) 0.55 (26) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (73) 0.33 (70) All Public Plans -Total Fund Median 3.37 12.20 9.67 -0.49 15.39 10.18 -8.65 12.50 5.00 17.96 6.22 0.30 -0lff' 9.88 1.71 4.93 � Total Fund (Gross) 4.14 (18) 14.46 (11) 11.61 (7) 0.63 (26) 12.21 (10) 16.33 (6) 19.81 (16) -0.46 (68) 11.40 (18) 1.43 (63) Total Fund Policy 3.48 (45) 12.89 (36) 10.64 (20) 0.55 (26) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (73) 0.33 (70) All Public Plans -Total Fund Median 3.37 -1.30 12.20 5.88 9.67 -0.49 (13) 10.18 (22) 12.50 (70) 17.96 (83) 0.30 (87) 9.88 1.71 2.95 Total Fund (New Mgrs) (Gross) 4.14 (18) 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (10) 16.33 (5) 19.81 (15) -0.45 (68) 11.40 (18) 1.39 (54) Total Fund Policy 3.48 (45) 12.89 (36) 10.64 (20) 0.55 (26) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (11) 9.13 (73) 0.33 (70) All Public Plans -Total Fund Median 3.37 (91) 12.20 (12) 9.67 -0.49 N/A 10.18 N/A 12.50 N/A 17.96 N/A 0.30 3.56 9.88 1.71 (94) Total Equity 6.411W 19.60 -1.62 23.09 W 27.08W 2.68 = 13.61 Total Equity Policy 4.99 19.00 13.13 -2.28 N/A 14.65 1.63 22.30 1.02 26.46 7.39 -1.66 -3.89 9.34 -6.91 Total Domestic Equity Total Domestic Equity Policy IM U.S. Large Cap Core Equity (SA+CF) Median Total International Equity MSCI EAFE Index IM International Large Cap Value Equity (SA+CF) Median Total Fixed Income Total Fixed Policy Total Domestic Fixed Income Total Domestic Fixed Policy IM U.S. Intermediate Duration (SA+CF) Median Total Global Fixed Income Total Global Fixed Income Policy IM Global Fixed Income (MF) Median Total Real Estate NCREIF Fund Index-ODCE IM U.S. Open End Private Real Estate (SA+CF) Median 5.92 (56) 18.64 (52) 15.21 (24) -0.59 (62) 17.58 (69) 21.85 (34) 27.76 (62) -3.30 (90) 14.19 (8) -4.29 (38) 5.65 (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) 6.14 18.74 13.17 0.03 19.25 20.66 29.73 1.16 9.50 -5.79 3.75 (35) 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) 2.80 (62) 19.65 (56) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) -8.94 (55) 3.71 (66) 3.80 (65) 3.32 20.93 8.36 -9.45 5.74 22.94 15.39 -8.65 5.00 6.22 -0lff' 3.31 4.93 � 3 6.34 4.67 9.27 'W 10.63 -1.13 0.25 3.57 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 -0.50 (18) 0.61 (62) 4.21 (31) 2.31 (72) 2.61 (65) -1.30 (95) 5.88 (43) 4.67 (13) 9.27 (22) 10.53 (70) -1.13 (83) 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) -0.85 0.70 3.91 2.70 2.89 -0.27 5.56 3.61 8.26 11.51 N/A N/A 0.81 (100) -7.63 (91) 6.31 (12) 3.53 (2) N/A N/A N/A N/A 3.56 (2) -2.69 (94) 9.71 (19) -3.83 (49) -0.07 (96) -4.60 (82) N/A N/A N/A N/A 1.63 1.02 7.39 -3.89 3.37 -1.81 7.17 1.74 7.68 13.54 4.97 (24) 10.01 (19) 11.44 (49) 14.27 (67) 13.47 (38) 16.42 (19) 12.81 (64) 16.82 (72) 2.71 (77) -32.42 (36) 4.30 (61) 7.66 (62) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 4.53 8.29 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 21 Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA+CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA+CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Bloomberg Barclays Intermed Aggregate Index IM U.S. Intermediate Duration (SA+CF) Median Galliard TIPS Blmbg. Barc. U.S. TIPS 1-10 Year Vanguard Short Term Bond Index (VSCSX) Blmbg. Barc. U.S. Corporate 1-5 Year Index IM U.S. Intermediate Investment Grade (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA+CF) Median Intercontinental NCREIF Fund Index-ODCE IM U.S. Open End Private Real Estate (SA+CF) Median Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2018 Oct -2016 Oct -2016 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 -2016 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) 9.39 (48) 21.94 (37) 13.76 (22) 3.17 (55) 19.15 (39) 19.27 (64) 29.19 (38) 3.78 (30) 12.65 (35) -1.85 (37) 9.26 20.81 11.62 3.60 18.11 20.26 27.62 1.37 11.27 -3.01 3.75 (35) 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) 2.80 (62) 19.65 (56) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) -8.94 (55) 3.71 (66) 3.80 (65) 3.32 20.93 8.36 -9.45 5.74 22.94 15.39 -8.65 5.00 6.22 5.70 (44) 18.64 (37) 15.00 (14) -0.59 (34) 17.77 (31) N/A N/A N/A N/A N/A 5.70 (44) 18.64 (36) 14.99 (15) -0.55 (33) 17.77 (31) 21.60 (60) 30.28 (16) 0.71 (25) 11.16 (28) -6.03 (54) 5.48 17.35 11.54 -1.80 16.33 22.85 26.64 -1.61 9.48 -5.63 -0.79 (42) 0.44 (74) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (28) 9.63 (17) 12.08 (38) -1.13 (83) 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) -0.85 0.70 3.91 2.70 2.89 -0.27 5.56 3.61 8.26 11.51 0.16 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 0.13 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 -1.08 (70) 1.55 (25) 3.40 (24) N/A N/A N/A N/A N/A N/A N/A -0.88 (50) 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) -0.90 0.84 2.71 1.21 1.67 -0.51 4.93 1.99 7.52 10.46 4.00 (82) 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) 11.56 (68) 16.11 (66) 2.71 (77) -32.42 (35) 4.37 (57) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 4.53 8.29 11.32 15.45 12.78 13.18 12.90 16.62 6.39 -34.80 5.62 (12) 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 4.30 (61) 7.66 (62) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 4.53 8.29 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 22 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 17.00 14.00 O 11.00 O O O • 8.00 K 5.00 • • 2.00 1.00 i _4.00 1 1 • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Performance Review Total Fund Portfolio As of March 31. 2018 28.00 24.00 20.00 00 16.00 O O 12.00 K 8.00 4.00 0.00 • ■ _4.00 _8.00 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 -0.27 (47) 4.14 (18) 11.14 (26) 12.18 (11) 8.42 (2) 8.12 (3) 9.82 (2) • Total Fund Portfolio 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (10) 16.33 (5) 19.81 (15) • Total Fund Policy -0.57 (71) 3.48 (45) 10.08 (54) 10.91 (37) 7.36 (14) 7.63 (13) 9.02 (10) • Total Fund Policy 12.89 (36) 10.64 (20) 0.55 (26) 11.38 (23) 15.00 (12) 19.61 (18) Median -0.32 3.35 10.21 10.49 6.37 6.63 7.84 Median 12.20 9.67 -0.49 10.18 12.50 17.96 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Total Fund Portfolio 4.42 (10) 3.82 (23) 2.79 (63) 4.46 (48) 2.66 (4) 4.39 (8) Total Fund Policy 4.07 (26) 3.48 (46) 2.80 (63) 4.36 (54) 1.69 (17) 3.50 (45) All Public Plans -Total Fund Median 3.75 3.45 2.98 4.41 0.85 3.37 23 3 Yr Rolling Under/Over Performance - 5 Years 20.0 e Over O Performance 0 16.0 • o � a 12.0 v c 00 O 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 9.38 is 8.71 Q 8.04 «' 7.37 O K 6.70 6.03 4.85 4.90 4.95 5.00 5.05 5.10 5.15 5.20 Risk (Standard Deviation %) Return Standard Deviation Performance Review Total Fund Portfolio As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years °°eeo®oe888899g88e88°oo w 25.0 50.0 `w a 75.0 v K 100.0 1 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scattergram - 5 Years 10.40 9.75 9.10 O w 8.45 K 7.80 7.15 4.7 4.8 20(100%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) u 4.9 5.0 5.1 Risk (Standard Deviation %) Return Standard Deviation 5.2 • Total Fund Portfolio 8.42 5.14 O Total Fund Portfolio 9.82 5.06 O Total Fund Policy 7.36 4.94 O Total Fund Policy 9.02 4.76 Median 6.37 5.08 Median 7.85 4.93 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.79 110.21 95.14 0.79 1.28 1.53 1.03 2.70 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 2.69 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.00 107.93 102.54 0.38 0.76 1.84 1.04 2.14 Total Fund Policy 0.00 100.00 100.00 a24 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 24.00 20.00 16.00 00 12.00 - 8.00 v K 4.00 0.00 -4.00 -8.00 12.00 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) -0.60 (48) 5.70 (44) 13.85 (39) 15.95 (29) 10.20 (15) 10.72 (16) 13.02 (23) • VG Total Stock Mkt Hybrid -0.60 (48) 5.70 (44) 13.87 (38) 15.96 (29) 10.21 (15) 10.73 (15) 13.04 (23) Median -0.64 5.48 13.02 14.61 8.34 9.00 11.76 Comparative Performance Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2018 44.00 36.00 28.00 20.00 v 12.00 K 4.00 -4.00 � • • ■ -12.00 -20.00 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 Total Stock Mkt (VITSX) 18.64 (37) 15.00 (14) -0.59 (34) 17.77 (31) N/A N/A • VG Total Stock Mkt Hybrid 18.64 (36) 14.99 (15) -0.55 (33) 17.77 (31) 21.60 (60) 30.28 (16) Median 17.35 11.54 -1.80 16.33 22.85 26.64 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 VG Total Stock Mkt (VITSX) 6.34 (40) 4.54 (41) 3.03 (41) 5.79 (41) 4.12 (42) 4.42 (53) VG Total Stock Mkt Hybrid 6.34 (39) 4.55 (40) 3.04 (41) 5.79 (40) 4.11 (43) 4.41 (54) IM U.S. Multi -Cap Core Equity (MF) Median 6.00 4.28 2.85 5.49 3.73 4.48 25 3 3 Yr Rolling Under/Over Performance - 5 Years 12.0 Over X Performance F 11.0 x 10.0 Y U 0 9.0 rn A 0 8.0 C7 7.0 7.0 8.0 9.0 10.0 VG Total Stock Mkt Hybrid (%) • Under Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 10.54 V 9.92 9.30 «' 8.68 v Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O 0 0 0 0 0 0 0 0 25.0 0000 - 00 O 50.0 - O O `w a 75.0 - w K Under 100.0 Performance 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 I 11.0 12.0 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count 8.06 7.44 1 1 1 10.15 10.20 10.25 10.30 10.35 10.40 10.45 Risk (Standard Deviation %) Return Standard Deviation * VG Total Stock Mkt (VITSX) 9 O VG Total Stock Mkt Hybrid 20 Peer Group Scattergram - 5 Years 13.44 13.02 12.60 «' 12.18 v K 11.76 11.34 9.84 9.92 8 (89%) 1 (11%) 0 (0%) 0 (0%) 10 (50%) 10 (50%) 0 (0%) 0 (0%) 10.00 10.08 10.16 Risk (Standard Deviation %) Return 10.24 Standard Deviation 10.32 • VG Total Stock Mkt (VITSX) 10.20 10.21 • VG Total Stock Mkt (VITSX) 13.02 9.91 O VG Total Stock Mkt Hybrid 10.21 10.21 O VG Total Stock Mkt Hybrid 13.04 9.90 Median 8.34 10.41 Median 11.76 10.24 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) 0.03 100.00 100.04 -0.01 -0.13 0.96 1.00 5.96 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0 0.96 1.00 5.95 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) 0.04 99.92 100.01 -0.02 -0.49 1.26 1.00 5.34 VG Total Stock Mkt Hybrid 1 100.00 100.00 1.00 5.33 o 3 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) 30.00 1 44.00 25.00 I 36.00 28.00 20.00 O O 20.00 15.00 O c C' c 12.00 • 10.00 v v • 4.00 - 5.00 O -4.00 0.00 00 -12.00 -5.00 -20.00 -10.00 0 -28.00 i Performance Review RBC Global (Voyageur) As of March 31. 2018 27 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) -1.41 (58) 3.75 (35) 17.45 (25) 16.52 (26) 8.80 (19) 6.26 (25) 10.22 (7) O RBC Global (Voyageur) 22.69 (36) 10.74 (27) -4.36 (20) 10.08 (8) 27.54 (18) 24.74 (3) • MSCI EAFE Index -1.41 (58) 2.80 (62) 15.32 (50) 13.77 (56) 6.05 (59) 4.38 (59) 6.98 (59) O MSCI EAFE Index 19.65 (56) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) Median -1.26 3.32 15.24 14.11 6.70 4.78 7.63 Median 20.93 8.36 -9.45 5.74 22.94 15.39 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 RBC Global (Voyageur) 5.22 (28) 6.53 (31) 6.27 (44) 7.47 (61) 0.85 (37) 12.90 (2) MSCI EAFE Index 4.27 (49) 5.47 (58) 6.37 (41) 7.39 (63) -0.68 (58) 6.50 (59) IM International Large Cap Value Equity (SA+CF) Median 4.21 5.66 6.02 7.70 -0.20 7.01 27 3 Yr Rolling Under/Over Performance - 5 Years 32.0 Over Performance 24.0 v c A 00 016.0 - ap � O 0 8.0 `itit n O l5-Jr'1(_S , U 0.0 m K -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 9.80 8.82 7.84 - «' 6.86 K 5.88 - u 11.80 12.00 12.20 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 8.80 12.49 O RBC Global (Voyageur) y 0.0 p 12.44 0 6.05 12.10 00000000000 O MSCI EAFE Index 6.98 0 00 v 25.0 11.91 p 00 0 50.0 O 00 00 p O O p 00 0 0 0 EL 00 00 O 75.0 r Information Sharpe Downside Error v K Market Alpha Ratio Ratio Beta Under 100.0 Capture Capture Performance 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 24.0 32.0 Total Period 5-25 25 -Median Median -75 75-95 100.00 - Count Count Count Count O RBC Global (Voyageur) 20 18 (90%) 2 (10%) 0 (0%) 0 (0%) O MSCI EAFE Index 20 0 (0%) 9 (45%) 11 (55%) 0 (0%) N 12.40 12.60 Standard Deviation Peer Group Scattergram - 5 Years 12.00 emss 10.00 O 8.00 O 6.00 11.40 11.60 11.80 12.00 12.20 12.40 Risk (Standard Deviation %) Return Standard Deviation 12.60 O RBC Global (Voyageur) 8.80 12.49 O RBC Global (Voyageur) 10.22 12.44 O MSCI EAFE Index 6.05 12.10 O MSCI EAFE Index 6.98 11.82 Median 6.70 11.91 Median 7.63 11.69 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.56 107.08 91.64 2.92 0.58 0.70 0.96 8.16 MSCI EAFE Index 0.00 100.00 - 1.00 7.95 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.84 109.59 91.65 3.36 0.64 0.82 0.97 7.40 MSCI EAFE Index 100.00 100.00 0.00 1.00 28 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 4.32 3.68 3.04 2.40 1.76 c r 1.12 K 0.48 -0.16 -0.80 -1.44 -2.08 1 1 1 Comparative Performance 12.00 10.00 8.00 6.00 c r 4.00 K 2.00 0.00M -2.00 Performance Review Galliard Core Fixed Inc As of March 31. 2018 -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 (74) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) • Barclays Int Agg 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 -0.90 (51) -0.79 (42) 1.03 (35) 0.85 (51) 1.45 (34) 2.18 (29) 1.74 (35) • Barclays Int Agg Index -1.05 (83) -1.13 (83) 0.51 (87) 0.43 (85) 1.02 (84) 1.81 (63) 1.45 (69) Median -0.90 -0.85 0.83 0.89 1.32 1.95 1.62 Comparative Performance 12.00 10.00 8.00 6.00 c r 4.00 K 2.00 0.00M -2.00 Performance Review Galliard Core Fixed Inc As of March 31. 2018 -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 (74) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) • Barclays Int Agg 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 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Galliard Core Fixed Inc 0.11 (32) 0.79 (34) 1.03 (45) 0.78 (60) -2.12 (89) 0.30 (60) Barclays Int Agg Index -0.07 (79) 0.72 (51) 0.92 (73) 0.68 (81) -2.05 (79) 0.31 (58) IM U.S. Intermediate Duration (SA+CF) Median 0.02 0.72 1.02 0.81 -1.83 0.38 ORA 3 3 Yr Rolling Under/Over Performance - 5 Years s.o Over Performance v4.0 .o +0O v X 3.0 q LL � op O0 U 2.0 O .o O f0 1.0 A 0 0.0 1.0 2.0 3.0 4.0 Barclays Int Agg Index (%) • Over Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 1.60 1.40 C 1.20 1.00 0.80 1.86 1.88 1.90 1.92 1.94 1.96 Risk (Standard Deviation %) Return Standard Deviation Performance Review Galliard Core Fixed Inc As of March 31. 2018 1.98 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 1.80 1.70 1.60 «' 1.50 K 1.40 1.30 2.07 2.10 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) 101 2.13 2.16 2.19 Risk (Standard Deviation %) Return I 2.22 Standard Deviation 2.25 • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 1.96 • Galliard Core Fixed Inc 1.74 / y K 0.0 1.02 1.93 • Barclays Int Agg Index 1.45 v 25.00 1.32 1.88 0 0 0 0 0 0 0 0 0 2.09 50.0-•000000 000 O 0 O v Tracking Up p 00 p Sharpe Downside Error Market Market Alpha OOO Ratio Beta e 75.0- Op OO OO Capture K Galliard Core Fixed Inc 0.28 108.21 90.55 0.43 1.54 0.49 1.00 1.26 100.0 100.00 0.00 Under Historical Statistics - 5 Years Performance 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 5.0 Downside Error Market 5-25 25 -Median Median -75 75-95 Beta Risk Total Period Count Count Count Count 1.98 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 1.80 1.70 1.60 «' 1.50 K 1.40 1.30 2.07 2.10 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) 101 2.13 2.16 2.19 Risk (Standard Deviation %) Return I 2.22 Standard Deviation 2.25 • Galliard Core Fixed Inc 1.45 1.96 • Galliard Core Fixed Inc 1.74 2.20 • Barclays Int Agg Index 1.02 1.93 • Barclays Int Agg Index 1.45 2.13 Median 1.32 1.88 Median 1.62 2.09 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.28 108.21 90.55 0.43 1.54 0.49 1.00 1.26 Barclays Int Agg Index 0.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.32 104.61 94.74 0.25 0.90 0.65 1.02 1.36 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 W Peer Group Analysis - IM U.S. TIPS (SA+CF) 3.82 3.24 2.66 2.08 1.50 ' 0.92 v K 0.34 0.24 0.82 17.00 14.00 11.00 8.00 5.00 • - C' ' 2.00 v K • O -1.00 - -4.00 -7.00 - -10.00 -13.00 J i Performance Review Galliard TIPS As of March 31. 2018 ca 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 O Galliard TIPS -0.39 (19) 0.16 (88) 0.36 (97) 0.95 (94) 1.18 (89) 1.28 (85) 0.01 (78) O 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 -0.40 (19) 0.13 (90) 0.43 (96) 0.94 (94) 1.24 (85) 1.20 (94) -0.06 (87) 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 -0.75 0.49 0.95 1.29 1.35 1.77 0.10 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 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Galliard TIPS 0.55 (89) 0.70 (90) -0.50 (92) 1.42 (26) -1.82 (33) 0.63 (84) Barclays US TIPS 1-10 Yr 0.53 (92) 0.70 (90) -0.40 (75) 1.05 (88) -1.47 (14) 0.57 (96) IM U.S. TIPS (SA+CF) Median 1.26 0.89 -0.37 1.28 -2.35 0.99 ca 3 Yr Rolling Under/Over Performance - 5 Years 6.0 Over 4.0 - Performance F 2.0 - 1 0.0 - 70 0 -2.0 - -4.0 1 -4.0 -2.0 0.0 2.0 Barclays US TIPS 1-10 Yr (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 1.44 1.38 1.32 - «' 1.26 O K 1.20 • 2.20 2.40 Performance Review Galliard TIPS As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 °8 w 25.0 O Q O c v 50.0 -� O a" O 75.0 O O O 00 00 r Under v O Oe O e Q Q o 8 O O Q Performance � 1 100.0 O Oe 4.0 6.0 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count 0 Galliard TIPS 20 • Barclays US TIPS 1-10 Yr 20 Peer Group Scattergram - 5 Years 0.18 0.12 0.06 «' 0.00 Q K O -0.06 1 0.12 1 1 1 2.60 2.80 3.00 3.20 3.20 3.40 3.60 3.80 4.00 4.20 4.40 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation 2 (10%) 2 (10%) 7 (35%) 9 (45%) 2 (10%) 0 (0%) 2 (10%) 16 (80%) 4.60 • Galliard TIPS 1.18 2.43 • Galliard TIPS 0.01 3.59 O Barclays US TIPS 1-10 Yr 1.24 2.33 • Barclays US TIPS 1-10 Yr -0.06 3.39 Median 1.35 3.03 Median 0.10 4.43 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.47 98.17 99.36 -0.08 -0.11 0.29 1.02 1.40 Barclays US TIPS 1-10 Yr 100.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.84 98.97 97.26 0.08 0.09 -0.07 1.03 2.53 Barclays US TIPS 1-10 Yr 100.00 100.00 -0.09 1.00 2.52 32 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 4.30 12.00 3.60 10.00 2.90 8.00 Performance Review VG ST Bond Index (VSCSX) As of March 31. 2018 2.20 6.00 1.50 O c O c 4.00 0.80 v v 2.00 • 0.10 • 0.00 -0.60 � -2.00 -1.30 -2.00 -4.00 -2.70 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) -1.03 (92) -1.08 (70) 0.46 (48) 1.13 (44) 1.40 (23) N/A N/A • Barclays US Corp 1-5 Yr Index -0.80 (67) -0.88 (50) 0.79 (33) 1.42 (30) 1.53 (18) 1.77 (14) 1.76 (10) Median -0.71 -0.90 0.43 0.93 0.97 1.20 0.95 Comparative Performance -6.00 L-- 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 • 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 33 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 VG ST Bond Index (VSCSX) -0.05 (36) 0.66 (23) 0.89 (15) 0.75 (39) -0.75 (32) 0.48 (42) Barclays US Corp 1-5 Yr Index -0.09 (42) 0.76 (12) 0.93 (13) 0.94 (15) -0.81 (35) 0.52 (36) IM U.S. Intermediate Investment Grade (MF) Median -0.13 0.53 0.69 0.70 -1.00 0.42 33 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 v K 5.00 2.00 -1.00 -4.00 00 0 4 0 Comparative Performance Performance Review American Core RE As of March 31. 2018 29.00 26.00 23.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 2.23 (50) 4.00 (82) 8.04 (85) 7.38 (88) 9.33 (82) 10.23 (81) 10.81 (75) • American Core RE Policy 2.17 (60) 4.37 (57) 8.16 (76) 8.39 (66) 10.26 (61) 11.00 (66) 11.45 (70) Median 2.23 4.53 8.62 8.66 10.38 11.37 12.13 Comparative Performance Performance Review American Core RE As of March 31. 2018 29.00 26.00 23.00 1 Qtr 1 Qtr 20.00 1 Qtr 1 Qtr 17.00 - Ending Ending E 14.00 - w Ending Ending K Sep -2017 Jun -2017 11.00 - Dec -2016 • American Core RE 1.73 (89) 1.88 (44) 1.97 (40) 8.00 - • 1.83 (71) American Core RE Policy 2.15 (57) 1.89 (44) 1.71 (69) 5.00 - 2.16 (57) 2.18 (50) 2.00 - -1.00 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 O American Core RE 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) 11.56 (68) O American Core RE Policy 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) Median 8.29 11.32 15.45 12.78 13.18 12.90 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 American Core RE 1.73 (89) 1.88 (44) 1.97 (40) 2.27 (30) 1.20 (81) 1.83 (71) American Core RE Policy 2.15 (57) 1.89 (44) 1.71 (69) 1.83 (53) 2.16 (57) 2.18 (50) IM U.S. Open End Private Real Estate (SA+CF) Median 2.25 1.75 1.91 1.91 2.26 2.16 34 3 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over Performance Lu 14.0 K v �j 12.0 U • • . w 10.0 E 8.0 8.0 10.0 12.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 10.80 10.44 10.08 «' 9.72 v K 9.36 • 9.00 I 1 1 1 1.32 1.38 1.44 1.50 1.56 1.62 Risk (Standard Deviation %) Return Performance Review American Core RE As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 9.33 1.52 • American Core RE y 0.0 1.71 O American Core RE Policy 10.26 1.43 • American Core RE Policy A K 1.37 Median 10.38 1.74 Median w 25.0 1.85 Historical Statistics - 3 Years Tracking Up Down Information v 50.0 Downside Error Market Market Alpha Ratio a 75.0 [� e O 8 O O a e 8 QQ O Q O O O O American Core RE o e V N/A 0 0 v 0.89 0.00 American Core RE Policy 0.00 0 0 0 0 0.00 100.0 0.00 Historical Statistics - 5 Years Under Tracking Up Down Information Performance 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 I 14.0 16.0 Beta Risk 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 1.68 1.74 Standard Deviation 1.80 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 12.76 12.32 11.88 w 11.44 O K 11.00 10.56 1 1.20 1.30 1.40 0 (0%) 0 (0%) 7 (35%) 13 (65%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) F- Li 1 1 1 1.50 1.60 1.70 1.80 1.90 Risk (Standard Deviation %) Return Standard Deviation 2.00 O American Core RE 9.33 1.52 • American Core RE 10.81 1.71 O American Core RE Policy 10.26 1.43 • American Core RE Policy 11.45 1.37 Median 10.38 1.74 Median 12.13 1.85 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 0.84 91.29 N/A 0.22 -1.03 5.26 0.89 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.07 94.67 N/A -0.26 -0.55 5.55 0.97 0.00 American Core RE Policy 0.00 100.00 N/A 1.00 0.00 35 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 29.00 26.00 17.00 23.00 14.00 O 20.00 O 11.00 17.00 O E 11 c 8.00 O O 14.00 v v • 11.00 5.00 - i • 8.00 2.00 - 5.00 -1.00 2.00 -4.00 -1.00 • Performance Review Intercontinental As of March 31. 2018 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 2.79 (7) 5.62 (12) 9.85 (19) 11.80 (10) 12.77 (15) 12.83 (18) 13.48 (19) • Intercontinental 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) 13.38 (43) • NCREIF Fund Index 2.20 (58) 4.31 (61) 8.07 (81) 8.20 (73) 9.99 (76) 10.85 (68) 11.43 (70) • NCREIF Fund Index 7.66 (62) 10.08 (80) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) Median 2.23 4.53 8.62 8.66 10.38 11.37 12.13 Median 8.29 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 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Sep -2016 Intercontinental 2.75 (15) 2.53 (14) 1.43 (87) 1.71 (55) 5.71 (1) 3.88 (3) NCREIF Fund Index 2.07 (69) 1.87 (44) 1.70 (70) 1.77 (54) 2.11 (61) 2.07 (58) IM U.S. Open End Private Real Estate (SA+CF) Median 2.25 1.75 1.91 1.91 2.26 2.16 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over r. Performance - �-15.0 coo Do 0 0000 O 0 tom-, 12.0 0 U c 9.0 6.0 1 6.0 9.0 12.0 NCREIF Fund Index (%) • Over Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 13.30 12.35 11.40 - «' 10.45 v K 9.50 8.55 1 1 1 0.90 1.20 1.50 1.80 2.10 2.40 Risk (Standard Deviation %) Return Performance Review Intercontinental As of March 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 12.77 2.94 y 0.0 2.92 • NCREIF Fund Index 9.99 1.44 O NCREIF Fund Index 11.43 1.46 Median 10.38 1.74 Median 0 w 25.0 O e O Q o 0 O o 0 0 0 0 o 0 Tracking Up Down Information o 0 o Downside Error 50.0 Market Alpha Ratio Ratio 0 Risk J a Capture 0000000 0 0 0 0 0 0 0 0 0 0 0 0 00 N/A 75.0 0 3.88 0.97 0.00 0 0 00 0 K N/A 1.00 0.00 Historical Statistics - 5 Years 100.0 Tracking Up Down Information Under Downside Error Market Market Alpha Ratio Ratio Performance Risk 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 3/18 1 15.0 18.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count N 2.70 3.00 Standard Deviation 3.30 lb Intercontinental 19 • NCREIF Fund Index 20 Peer Group Scattergram - 5 Years 14.49 13.80 13.11 «' 12.42 v K 11.73 O 11.04 1 0.90 1.20 1.50 6 (32%) 13 (68%) 0 (0%) 0 (0%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) [OR 1 1 1.80 2.10 2.40 2.70 3.00 Risk (Standard Deviation %) Return Standard Deviation 3.30 • Intercontinental 12.77 2.94 • Intercontinental 13.48 2.92 • NCREIF Fund Index 9.99 1.44 O NCREIF Fund Index 11.43 1.46 Median 10.38 1.74 Median 12.13 1.85 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.59 126.83 N/A 2.96 1.00 3.88 0.97 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.64 117.45 N/A 3.40 0.73 4.20 0.87 0.00 NCREIF Fund Index 100.00 N/A 10 0.00 37 Private Equity Fund Overview Crescent Direct Lending Fund As of March 31, 2018 Fund Information $2,000,000 Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower -middle -market companies. The Fund will seek to enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Cash Flow Analysis Capital Committed: $2,000,000 $4,290,000.0 Capital Invested: $3,217,714 Management Fees: $913 Expenses: $126,837 $3,432,000.0 Interest: - Total Contributions: $3,217,714 $2,574,000.0 Remaining Capital Commitment: $126,656 Total Distributions: $1,559,787 $1,716,000.0 Market Value: $1,943,974 Inception Date: 10/14/2014 $858,000.0 Inception IRR: 7.5 NPI: 1.1 $0.0 ($858,000.0) 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 3/18 38 Net Asset Value Distribution Contributions Total Fund Policy Allocation Mandate Jan -1976 S&P 500 Index Blmbg. Barc. U.S. Aggregate Index MSCI EAFE Index Oct -2003 S&P 500 Index Blmbg. Barc. 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 (EVA Vanguard Total Stock Market Policy Allocation Mandate Jun -200? MSCI US Broad Market Index Benchmark Historical Hybrid Compositions Total Fund As of March 31, 2018 Total Equity Policy ht (%) Allocation Mandate Weight (%) K7 Jan -1970 65.00 S&P 500 Index 90.00 30.00 MSCI EAFE Index 10.00 5.00 Oct -2003 S&P 500 Index 85.00 60.00 MSCI EAFE Index 15.00 30.00 10.00 Sep -2006 S&P 500 Index 100.00 60.00 Oct -2009 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 50.00 Total Domestic Equity Policy 25.00 Allocation Mandate Weight (%) 15.00 Jan -1926 5.00 S&P 500 Index 100.00 5.00 Oct -2009 Russell 3000 Index 100.00 50.00 20.00 15.00 Total Fixed Income Policy 5.00 Allocation Mandate Weight (%) 10.00 Nov -2004 Blmbg. Barc. U.S. Aggregate Index 100.00 Sep -2006 Bloomberg Barclays Intermed Aggregate Index 100.00 sight (%) American Realty Policy 100.00 Allocation Mandate Weight (%) Oct -2007 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -Open End Diversified Core (EVA 100.00 K7 Compliance Checklist Total Fund Winter Springs GE As of March 31, 2018 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher.— 0.41 of bonds is rated BB, since this is below the threshold of 1. marked in compliance Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. 40 Vanguard Total RBC Global Galliard TIPS Yes No NIA Yes No NIA Yes No NIA Yes No NIA American RE Intercontinental T Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA VG Short BD Vanguard Total Stock Market (VITSX) Total Domestic Equity RBC Global (Voyageur) Total International Equity Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Domestic Fixed Income Crescent Direct Lending Fund Total Other Fixed Income Intercontinental American Core Realty Fund Total Real Estate Receipt & Disbursement Total Fund Estimated Annual Fee N 0.04 0.04 0.95 0.96 0.25 0.15 0.12 0.21 1.35 1.36 1.10 1.10 1.10 0.41 41 Market Value 24,492,747 24,492,747 8,653,602 8,663,602 4,699,798 1,210,986 16,616 6,917,001 1,943,974 1,943,974 3,143, 321 2,040,417 6,183,738 893,528 49,891,301 Winter Springs General Employees General Plan and Trust Fee Analysis As of March 31, 2018 Estimated Annual Fee 9,797 9,797 82,209 82,209 11,750 1,816 20 14,676 26,244 26,244 34,577 22,445 67,021 203,397 Fee Schedule 0.04 % of Assets 0.95 % of Assets 0.25 % of Assets 0.15 % of Assets 0.12 % of Assets 1.35 % of Assets 1.10 % of Assets 1.10 % of Assets 3 Disclosures Total Fund As of March 31, 2018 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. 42 Report Statistics Definitions and Descriptions Active Return Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non -systemic return, or its historical performance not explained by movements of the market. Beta A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Distributed to Paid In (DPI) The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return Arithmetic difference between the manager's performance and the risk-free return over a specified time period. Excess Risk A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R -Squared The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R -Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return Compounded rate of return for the period. Sharpe Ratio Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk-adjusted performance. Standard Deviation A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Total Value to Paid In (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. 43 Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time -weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non -infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 44 Putting clients first. AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom n