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HomeMy WebLinkAbout2018 08 09 Regular 500 Quarterly Investment ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 500 August 9, 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 Third Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Return Report (48 Pages) Investment Performance Review Period Ending June 30, 2018 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44-ANDCO I AndCoConsulting.com 2nd Quarter 2018 Market Environment Market returns were mixed across major equity and fixed income indices for the 2nd quarter of 2018. Broad domestic equity indices had healthy gains as supportive economic and corporate earnings data, helped by a fiscal stimulus tailwind resulting from the Republican Party led tax reform passed in late 2017, continued to push domestic stocks higher. International indices did not fare as well during the period, posting negative returns in US dollar (USD) terms, as markets were hurt by relatively soft economic data, geopolitical concerns and a strengthening USD. Fixed income returns were somewhat flat for the quarter with the various sector segments producing minor gains or losses. Despite the Federal Reserve's (Fed) ongoing tightening of monetary policy and the potential for global trade disruptions resulting from Trump administration protectionist trade policies, economic momentum in the US continued to fuel investor demand for domestic equities. The US stock market represented by the Russell 3000 Index returned 3.9% and 14.8% for the quarter and 1 -year period respectively. International equity posted negative returns for the quarter with emerging markets stocks falling the greatest degree. The developed market MSCI EAFE Index lost -1.2% as macroeconomic data abroad, while still signaling a continuation in global growth, appeared to slow throughout the quarter. International markets were also affected by investor concerns surrounding ongoing political developments in various countries and continued uncertainty around the outlook for global trade relations. International market returns also faced a currency effect headwind as the USD appreciated against most other currencies during the period. This combination of factors had the greatest influence on emerging market equities with the MSCI Emerging Markets Index posting a sharp decline of -8.0%. One-year returns remain broadly positive with the MSCI EAFE and MSCI Emerging Markets indices returning 6.8% and 8.2% respectively. Interest rates on the US Treasury Yield Curve rose across all maturities during the 2nd quarter. The increase in interest rates was most pronounced in short- term maturities resulting in further flattening of the yield curve. The relatively large increase at the short -end of the curve was partially due to the Feds decision to tighten monetary policy by increasing short-term interest rates for the second time this year during their June meeting. Also significant was the change in the Fed's forecasted schedule for interest rate increases, which now projects two potential additional rate increases in 2018, where it had previously forecast just one. The broad market Bloomberg Barclays US Aggregate Index was modestly negative for both the 2nd quarter and the 1 - year time period, returning -0.2% and -0.4% respectively. Corporate issues were the worst performing investment grade sector during the quarter, returning -1.0% as credit spreads continued to widen through 2018. MSCI ACwxUS MSCI EAFE MSCI Emerg Mkts S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill The Market Environment Major Market Index Performance As of June 30, 2018 Quarter Performance -2.6% -1.2% -8.0 3.4% 3.9% 3.6% 2.8% 7.8% -0.2% 0.1% 0.80 0.2% -1.0% 0.4% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 1 -Year Performance 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 -5.0% 7.3% 6.8% 8.2% 14.4% 14.8% 14.5% 12.3% -0.4% -0.6% 2.1% 0.1% -0.8% 1.3% 0.0% 5.0% 10.0% 15.0% 17.6% 20.0% C � Source: Investment Metrics 2 US equity index returns were positive across the style and capitalization spectrum during the 2nd quarter of 2018. Markets were encouraged by the ongoing strength in US economic data and corporate earnings. Positive data releases in unemployment, retail sales, consumer consumption, GDP and investor sentiment highlighted the continued health of the US economy. Additionally, Q1 2018 corporate earnings announced throughout the period grew at an impressive rate as corporate profits were beneficiaries of the late 2017 Republican Party tax reforms. Returns for the period were tempered by global trade uncertainty as tariffs on steel and aluminum imported from Canada, Mexico and the European Union took effect with the possibility of additional tariffs aimed at China and foreign auto producers being considered. The Trump administration also announced the US withdrawal from the Iran nuclear accord, proposing new sanctions, which could disrupt oil markets in the future, and made progress toward a denuclearization deal with North Korea. During the quarter, small cap stocks outperformed mid and large cap equities for style and core indices. This is partially due to the increased tax reform benefit small cap companies will receive relative to large caps. Small cap stocks have historically paid higher taxes relative to large cap companies since they typically generate more of their revenue in the US. More globally oriented large caps also faced a considerable headwind from the recent USD strength. Large cap companies generate more revenue outside of the US and an appreciating USD makes US exports more expensive to foreign consumers. The small cap Russell 2000 Index returned 7.8% during the period, while the large cap Russell 1000 Index returned 3.6%. Small caps also outperformed over the 1 -year period with the Russell 2000 returning 17.6% over the trailing year while the Russell 1000 posted a return of 14.5%. Style index performance was mixed during the quarter with growth companies outperforming in large- and mid -cap, but value stocks outperforming in the small -cap space. The Russell 2000 Value Index was the best performing style index for the period returning a notable 8.3% for the quarter. Returns over the trailing year continue to show significant outperformance of growth indices relative to their value counterparts with the return of the Russell 1000 Growth Index more than tripling the return of the Russell 1000 Value Index. 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 sectors such as REITs, utilities and telecom. 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 June 30, 2018 Quarter Performance - Russell Style Series 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 1 -Year Performance - Russell Style Series 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% C � Source: Investment Metrics 3 ■ Sector performance was mixed across large cap sectors for the 2nd quarter of 2018. Seven of eleven sectors had positive returns for the quarter and six of eleven economic sectors outpaced the Russell 1000 Index return. Energy was the best performing sector during the quarter, returning 14.1%, as an OPEC announced increase in crude oil production was overshadowed by supply concerns in Iran, Venezuela and Libya, resulting in considerably higher oil prices. The consumer discretionary sector also performed well on the back of strong retail sales and increased consumer spending, gaining 7.9% for the period. Technology stocks continued their climb, returning 6.8% over the quarter. Technology names now account for nearly 25% of the market cap of the Russell 1000 Index. The largest detractors for the quarter were the financials, industrials and consumer staples sectors which returned -3.1%, - 2.7% and -1.9% respectively. Over the trailing 1 -year period, technology was the best performing sector by a relatively wide margin returning an impressive 31.3% and the consumer discretionary and energy sectors also posted returns greater than 20%. Ten of eleven large cap economic sectors posted positive returns for the 1 -year period with consumer staples being the only sector to post negative performance, returning -3.2%. ■ Quarterly results for small cap sectors were higher relative to their large capitalization counterparts. All sectors had positive returns during the period with seven of eleven economic sectors outpacing the Russell 2000 Index return for the quarter. Like the large cap index sector performance, industrials and financials were relative underperformers for the 2nd quarter. Financials were hurt by a flattening yield curve and concerns over global trade weighed on industrials. Quarterly performance on industrials and financials was 3.1% and 4.1% respectively. Energy was the best performing sector in the Russell 2000 as well, returning a notable 20.6%. However, there were several differences, particularly in consumer staples and telecom where there was significant outperformance relative to their large cap counterparts. Small cap sectors beat large cap sectors in those two categorizations by over 10.0% during the quarter. Over the trailing 1 -year period, all eleven sectors posted gains. Health care stocks were the best performers within the Russell 2000 for the trailing year returning a solid 29.5%. Energy and technology also posted returns over 20% for the 1 -year period. ■ Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for six of the eleven GICS sectors were higher than their long-term averages at quarter -end. Using these historical P/E measures, the utilities, consumer discretionary and real estate 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 The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2018 Health Care (13.4%) Industrials (10.3%) Info Technology (24.8%) Materials (3.1%) Real Estate (3.5%) LP Telecom Services (1.8%) -0.7% 1.3% Utilities (2.8%) iii_L9__o/o 9.8% .9% 7.3 o 6.7% 6.8°/ io 9.9% - 7.3 o 4.8% t.2% 4.5% ❑Quarter 01 -Year 22.0% 22.3% 31.3%1 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Russell 2000 1 ■Quarter Ell -Year Consumer Disc (12.1 %) Consumer Staples (2.4%) Energy (4.0%) Financials (18.0%) Health Care (16.7%) Industrials (14.8%) Info Technology (17.4%) Materials (4.3%) Real Estate (6.4%) Telecom Services (0.6%) Utilities (3.3%) 0.0% 4 9.6% 1 .9% 1% 17.0% 20.6% 21.5% 12.5% 10.1% 16.4% .4% 20.9% 11.3% 13.2% 11.1% 8.4% 7.8% 10.0% 20.0% 30.0% Russell 1000 Consumer Disc (13.0%) Consumer Staples (6.6%) ° ° -3.2 Energy (6.0%) Financials (14.7%) -3.1 Health Care (13.4%) Industrials (10.3%) Info Technology (24.8%) Materials (3.1%) Real Estate (3.5%) LP Telecom Services (1.8%) -0.7% 1.3% Utilities (2.8%) iii_L9__o/o 9.8% .9% 7.3 o 6.7% 6.8°/ io 9.9% - 7.3 o 4.8% t.2% 4.5% ❑Quarter 01 -Year 22.0% 22.3% 31.3%1 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Russell 2000 1 ■Quarter Ell -Year Consumer Disc (12.1 %) Consumer Staples (2.4%) Energy (4.0%) Financials (18.0%) Health Care (16.7%) Industrials (14.8%) Info Technology (17.4%) Materials (4.3%) Real Estate (6.4%) Telecom Services (0.6%) Utilities (3.3%) 0.0% 4 9.6% 1 .9% 1% 17.0% 20.6% 21.5% 12.5% 10.1% 16.4% .4% 20.9% 11.3% 13.2% 11.1% 8.4% 7.8% 10.0% 20.0% 30.0% The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2018 Fussell 1000 Apple Inc Top 10 Weighted Weight 3.53% Stocks 1 -Qtr Return 10.8% 1 -Year Return 30.5% Sector Information Technology Microsoft Corp 2.89% 8.5% 45.8% Information Technology Amazon.com Inc 2.68% 17.4% 75.6% Consumer Discretionary Facebook Inc A 1.79% 21.6% 28.7% Information Technology Berkshire Hathaway Inc B 1.40% -6.4% 10.2% Financials JPMorgan Chase & Co 1.37% -4.8% 16.5% Financials Exxon Mobil Corp 1.36% 12.0% 6.6% Energy Alphabet Inc C 1.32% 8.1% 22.8% Information Technology Alphabet Inc A 1.31% 8.9% 21.5% Information Technology Johnson & Johnson 1.26% 1 -4.6% -5.8% Health Care Russell 000 Top 10 Performing Weight Stocks (by Nr rn Quarter) 1 -Year Return Sector Sarepta Therapeutics Inc 0.03% 78.4% 292.1% Health Care Wayfair Inc Class A 0.03% 75.9% 54.5% Consumer Discretionary Chesapeake Energy Corp 0.02% 73.5% 5.4% Energy Whiting Petroleum Corp 0.02% 55.8% 139.2% Energy Twitter Inc 0.12% 50.5% 144.4% Information Technology Advanced Micro Devices Inc 0.05% 49.2% 20.1% Information Technology Exact Sciences Corp 0.03% 48.3% 69.0% Health Care Under Armour Inc C 0.02% 46.9% 4.6% Consumer Discretionary Twilio Inc A 0.02% 46.7% 92.4% Information Technology Weatherford International PLC 0.01% 43.7% -15.0% Energy Russell 1000 Stocks (by e 1tr rn Quarter) 1 -Year Return Sector Nektar Therapeutics Inc 0.03% -54.0% 149.8% Health Care Alkermes PLC 0.02% -29.0% -29.0% Health Care CommScope Holding Co Inc 0.02% -26.9% -23.2% Information Technology American Airlines Group Inc 0.06% -26.8% -23.9% Industrials Arconic Inc 0.03% -25.9% -24.1% Industrials Copa Holdings SA Class A 0.01% -25.9% -17.0% Industrials First Solar Inc 0.02% -25.8% 32.0% Information Technology ManpowerGroup Inc 0.02% -24.4% -21.5% Industrials Switch Inc Class A 0.00% -23.3% N/A Information Technology Skechers USA Inc 0.02% -22.8% 1.7% Consumer Discretionary Source: Morningstar Direct 5 Five Below Inc 0.24% 33.2% 97.9% Consumer Discretionary Etsy Inc 0.23% 50.4% 181.3% Information Technology Blackbaud Inc 0.22% 0.8% 20.1% Information Technology Livallova PLC 0.22% 12.8% 63.1% Health Care Haemonetics Corp 0.22% 22.6% 127.1% Health Care Entegris Inc 0.22% -2.4% 55.4% Information Technology FibroGen Inc 0.21% 35.5% 93.8% Health Care Idacorp Inc 0.21% 5.2% 10.9% Utilities Medidata Solutions Inc 0.21% 28.3% 3.0% Health Care Loxo Oncology Inc 0.21% 50.4% 116.3% 1 Health Care Turtle Beach Corp 0.01% 746.8% 625.7% Consumer Discretionary Solid Biosciences Inc 0.01% 375.1% N/A Health Care Tandem Diabetes Care Inc 0.04% 344.0% 175.2% Health Care Intelsat SA 0.03% 343.1% 444.4% Telecommunication Services Evolus Inc 0.01% 210.0% N/A Health Care California Resources Corp 0.09% 165.0% 431.5% Energy TransEnterix Inc 0.03% 156.5% 514.1% Health Care Penn Virginia Corp 0.05% 142.3% 131.0% Energy Regenxbio Inc 0.09% 140.4% 263.3% Health Care Madrigal Pharmaceuticals Inc 0.07% 139.57% 1620.19/. Health Care Bottom r Weight 1-QtrAIh Re Quarter) 1 -Year Sector Arsanis Inc 0.00% -84.1% N/A Health Care Menlo Therapeutics Inc 0.00% -78.4% N/A Health Care Jounce Therapeutics Inc 0.01% -65.7% -45.4% Health Care Prothena Corp PLC 0.03% -60.3% -73.1% Health Care Biglari Holdings Inc 0.01% -55.1% -54.1% Consumer Discretionary Catalyst Biosciences Inc 0.01% -54.8% 151.0% Health Care Recro Pharma Inc 0.00% -54.4% -28.6% Health Care scPharmaceuticals Inc 0.00% -54.4% N/A Health Care Agenus Inc 0.01% -51.8% -41.9% Health Care Syndax Pharmaceuticals Inc 0.00% -50.7% -49.7% Health Care ■ Broad international equity returns were mixed for the quarter. Many developed markets were positive in local currency terms, but negative in USD terms whereas emerging markets posted negative returns in both local currency and USD. Performance was largely driven by the same catalysts as the US equity markets with global macroeconomic data remaining generally positive, but returns being tempered by global trade tensions and ongoing political uncertainty. A strengthening USD caused by relatively strong US economic fundamentals and the continued divergence in global monetary policy hurt US investors in international markets. The MSCI ACWI ex US Index gained 1.9% in local currency terms, but lost -2.6% in USD terms during the second quarter. Returns over the 1 -year period remain positive in both local currency and USD terms with the MSCI ACWI ex US returning 7.4% and 7.3% respectively. ■ Second quarter results for developed market international indices were generally positive in local currency terms with the MSCI EAFE Index returning 3.5%. However, an appreciating USD pushed returns for US investors into negative territory, with the index returning -1.2% in USD terms. Developed markets were pushed higher by broadly positive, but slowing, global economic and earnings data despite several significant political events in Europe during the quarter. There was considerable volatility surrounding the formation of a coalition government in Italy which called into question Italy's future as part of the European Union. Spain also had a change in leadership after a political fundraising scandal led to a vote of no -confidence in Prime Minister Rajoy, forcing him to step down. World markets also reacted to the implementation of new tariffs on US imports of steel and aluminum and the possibility of new tariffs in the future, including tariffs on auto imports, which would negatively affect producers in Europe and Japan. The MSCI EAFE Index returned 6.1% and 6.8% for the last twelve months in local currency and USD terms respectively. ■ Emerging markets trailed developed markets for the 2nd quarter, posting losses in local currency terms that were then intensified by the strengthening USD. The MSCI Emerging Markets Index returned -3.5% and -8.0% in local currency and USD terms respectively. The main factors affecting emerging markets were the threat of continued protectionist trade policies from the US creating uncertainty for export focused economies and rising US interest rates coupled with an appreciating USD. Many emerging market countries and companies issue debt denominated in USD and the combination of higher interest rates and a relatively weaker local currency can put stress on the balance sheets of these borrowers, especially those heavily dependent on external capital. One year returns for the MSCI Emerging Market Index were 10.5% in local currency terms and 8.2% in USD terms. The Market Environment International and Regional Market Index Performance (Country Count) As June 30, 2018 Quarter Performance AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) -10.2% EM Asia (9) EM Latin Amer (5) 17'8% -20.0% -15.0% 1 -Year Performance 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) -0.2% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% C Source: MSCI Global Index Monitor (Returns are Net) 6 ❑USD ❑Local Currency -2.6% 1.9% -0.8% 3.8% -1.2% 3.5% -1.2% 4.2°/ -1.4% 2.3% -8.0% -3.5% -0.3% -5.9% -3.4% -8.1% 10.0% -5.0% 0.0% 5.0% ■USD ❑Local Currency 7.2% 7.4% 7.00% 6.5% 6.8% 6.1% 5.2% 4.2% 9.9% .6% 8.2% 10.5% 5.6% 10.8% 10.1% 10.4% 10.9% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% C Source: MSCI Global Index Monitor (Returns are Net) 6 MSCI-EAFE Consumer Discretionary Sector Weight 12.4% Quarter Return -2.6% 1 -Year Return 10.9% Consumer Staples 11.3% 0.4% 3.1% Energy 6.1% 11.2% 35.8% Financials 19.8% -6.2% -0.5% Health Care 10.7% 1.9% 1.7% Industrials 14.3% -2.2% 7.3% Information Technology 6.8% -0.2% 15.0% Materials 8.2% 0.7% 16.7% Real Estate 3.5% -0.4% 7.8% Telecommunication Services 3.6% -4.8% -6.3% Utilities 3.3% 0.5% 5.2% Utilities Total 3.0% 100 .0% 1.5% 3.8% MSCI - Emerging Mkt Consumer Discretionary Sector Weight 9.8% Quarter -7.1% -0.2% Consumer Discretionary 11.2% -3.5% 8.4% Consumer Staples 9.7% -0.7% 2.9% Energy 7.4% 7.3% 27.5% Financials 21.9% -7.3% 1.7% Health Care 8.1% 1.4% 3.2% Industrials 11.7% -2.7% 5.9% Information Technology 11.9% -2.9% 15.5% Materials 8.2% -0.4% 16.1% Real Estate 3.2% -3.0% 6.9% Telecommunication Services 3.7% -6.0% -6.3% Utilities Total 3.0% 100 .0% 1.5% 3.8% MSCI - Emerging Mkt Consumer Discretionary Sector Weight 9.8% Quarter -7.1% -0.2% Consumer Staples 6.7% -6.2% 3.3% Energy 7.2% -4.7% 24.9% Financials 22.8% -12.7% 5.5% Health Care 3.2% -5.0% 22.4% Industrials 5.2% -11.2% -5.9% Information Technology 27.9% -5.1% 15.2% Materials 7.6% -5.5% 14.0% Real Estate 3.0% -11.2% 5.6% Telecommunication Services 4.3% -9.7% -7.5% Utilities Total 2.4% rrr 8.1% r 2.2% The Market Environment US Dollar International Index Attribution & Country Detail As of June 30, 2018 Country ML Weight jM_ Weight Re"turMWeyt urnV Japan 24.0% 16.4% -2.8% 10.5% United Kingdom 18.0% 12.3% 3.0% 10.0% France 11.0% 7.5% -0.5% 9.9% Germany 9.5% 6.5% -4.0% 2.6% Switzerland 7.8% 5.3% -2.7% -3.4% Australia 7.0% 4.8% 5.2% 8.7% Hong Kong 3.6% 2.5% -1.2% 9.2% Netherlands 3.6% 2.5% -1.8% 9.2% Spain 3.1% 2.1% -4.4% -3.6% Sweden 2.6% 1.8% -3.7% -4.6% Italy 2.4% 1.7% -7.3% 8.4% Denmark 1.7% 1.1% -7.0% 0.9% Singapore 1.3% 0.9% -7.5% 7.9% Belgium 1.1% 0.7% -6.0% 1.7% Finland 1.0% 0.7% 1.3% 10.4% Norway 0.7% 0.5% 2.3% 27.1% Ireland 0.6% 0.4% 2.0% 5.3% Israel 0.5% 0.4% 10.9% -4.6% Austria 0.2% 0.2% -10.6% 8.9% New Zealand 0.2% 0.2% 5.8% 1.7% Portugal 0.2% 1 0.1% 1 1.2% 15.8% Canada Total Developed Countries China 6.6% 75.0%r 8.2% 1 4.7% -3.5% 1 21.2% Korea 3.7% -9.2% 3.4% Taiwan 2.9% -6.3% 3.9% India 2.2% -0.6% 6.5% South Africa 1.6% -11.9% 6.4% Brazil 1.5% -26.4% -0.3% Russia 0.9% -6.0% 26.0% Mexico 0.7% -3.6% -9.3% Malaysia 0.6% -11.4% 5.6% Thailand 0.5% -15.0% 12.0% Indonesia 0.5% -12.5% -13.1% Chile 0.3% -11.5% 12.5% Poland 0.3% -11.6% -6.2% Philippines 0.2% -11.2% -13.9% Qatar 0.2% 3.5% 3.5% Turkey 0.2% -25.9% -26.3% United Arab Emirates 0.2% -4.4% -6.0% Colombia 0.1% 6.7% 20.1% Peru 0.1% -3.2% 30.7% Greece 0.1% -2.2% -9.2% Hungary 0.1% -14.4% -0.6% Czech Republic 0.0% -5.4% 19.4% Egypt 0.0% -8.1% 1.9% Pakistan 0.0% -20.8% -30.3% r, l r✓ Source: MSCI Global Index Monitor (Returns are Net in USD) 7 ■ Broad fixed income benchmarks had mixed results during the 2nd quarter. Interest rates rose across all maturities on the US Treasury Yield Curve. Early in the quarter, rates rose as positive economic data and signs of higher inflation increased investor expectations for another Fed interest rate hike. However, volatility caused by ongoing geopolitical developments later in the quarter led to an increase in risk aversion and demand for relatively safe assets, driving rates lower through the rest of the quarter. Interest rates on the 10 -year Treasury reached a near-term high of 3.11% in mid-May before falling to end the quarter at 2.87%. As expected, the Federal Open Market Committee (FOMC), decided to increase short-term interest rates by 25 basis points at their June meeting. This is the second rate hike of 2018. The current Fed Funds Rate target range sits at 1.75%-2.00%. The FOMC also updated their forecast for future rate increases, now expecting two potential additional hikes in 2018 and three in 2019. The yield curve continued to flatten through the quarter as short-term yields rose at a greater rate than longer-term yields. The difference in yields between the 2 -year and 10 -year Treasury now sits at just 0.3%. The Fed is also continuing to reduce the size of its balance sheet by slowing its pace of reinvestment as the securities it holds mature. The Bloomberg Barclays US Aggregate Index was relatively flat during the quarter, falling -0.2%. It was also negative for the 1 -year period returning -0.4%. ■ Within investment grade credit, higher quality corporate issues outperformed lower quality issues for the quarter as credit spreads widened and investors looked for safety amid increased financial market volatility. On an absolute basis, without negating the duration differences in the sub -indices, AAA rated credit was the best performing investment grade credit quality segment returning 0.2% for the quarter. High yield debt outperformed relative to investment grade credit, returning 1.0%, as spreads widened to a lesser degree for these issues and the index benefitted from its lower duration. Part of the reason for the increased spread widening for investment grade issues relative to high yield issues was continued selling pressure from companies repatriating foreign cash reserves in response to the new tax code and lower demand from foreign investors due to increased hedging costs and a stronger USD. ■ Of the Bloomberg Barclays US Aggregate Index's three broad sectors, US mortgage backed securities (MBS) were the best performing investment grade sector through the quarter, narrowly outperforming US Treasuries. Corporate credit underperformed as credit spreads widened and investors reacted to market volatility by moving into higher quality issues. Higher durations relative to other index sectors also acted as a headwind to these issues. The Bloomberg Barclays US Corporate IG Index returned -1.0%. While TIPS were also positive, it is important to note these Treasury issues are not part of the Bloombera Barclays US Aaareaate Index. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of June 30, 2018 AAA (5.6) AA (5.9) A (7.2) Baa (7.4) U.S. High Yield (3.9) U.S. Treasury (6.1) U.S. Mortgage (5.1) U.S. Corporate IG (7.3) U.S. TIPS (4.9) Aggregate (6.0) Intermediate Agg (4.3) Global Agg x US (7.9) Multiverse (6.9) Quarter Performance -4 0.2% -0.2 -0.9% 1.2% 1.0% 0.1% 0.2% -1.0% 0.8% -0.2 0.1% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 1 -Year Performance AAA (5.6) AA (5.9) A (7.2) Baa (7.4) U.S. High Yield (3.9) U.S. Treasury (6.1) U.S. Mortgage (5.1) U.S. Corporate IG (7.3) U.S. TIPS (4.9) Aggregate (6.0) Intermediate Agg (4.3) Global Agg x US (7.9) Multiverse (6.9) Source: Bloomberg 8 -0.3% 0.0% -1.0% 2.6% 0.1% 0.8�ro 2.1% -0.4% -0.3% 2.8% 1.3% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% Relative to their domestic counterparts, global fixed income indices underperformed during the quarter. The relatively high duration of these indices acted as a headwind to performance 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. During the 2nd quarter the USD strengthened against most other currencies, negatively impacting the returns on global bond indices. The return on global bonds, as represented by the Bloomberg Barclays Global Aggregate ex US Index, was -4.8% for the quarter. However, when viewed over the trailing year, global issues have outperformed domestic securities, returning 2.8%. As the global economy continues to recover, several international central banks have started to move toward less accommodative postures. Notably, the ECB, is planning to slow its monthly bond purchase program in September, reducing new purchases to 15 billion euro per month from 30 billion euro per month, as well as forecasting an end to the program by the end of the year assuming the eurozone recovery continues to flourish. However, they have indicated a continuation of reinvestment in maturing securities and would likely not raise interest rates from current levels until summer 2019. In contrast, the Bank of Japan will continue current stimulus programs and the Bank of England backed away from a telegraphed interest rate hike after disappointing economic data led them to lower their forecasts for future growth. 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 first half of the 2nd quarter, rising to a near-term high of 3.11% before falling to 2.87% 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 increase in credit spreads through the first two quarters of 2018. This increase is equivalent to an interest rate increase on corporate bonds, which produces an additional headwind for corporate bond index returns. These credit spreads have widened by about 17 basis points over the last 3 -months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate (three in the last twelve months) due to the continued unwinding of 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 upward momentum of interest rates as well as a general flattening of the yield curve are clearly visible over both the 2nd quarter and the last twelve months. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2018 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury 10yr TIPS Jun -17 Jul -17 Aug -17 Sep -17 Oct -17 Nov -17 Dec -17 Jan -18 Feb -18 Mar -18 Apr -18 May -18 Jun -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 9/30/2017 ---,---12/31/2017 3/31/2018 - 6/30/2018 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 March 31, 2018 : $4999209204 Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2018 Asset Allocation By Segment as of June 30, 2018 : $5190319755 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 24,492,747 49.1 _ Domestic Equity 25,449,555 49.9 m International Equity 8,653,602 17.3 m International Equity 8,768,569 17.2 ■ Domestic Fixed Income 6,911,364 13.8 ■ Domestic Fixed Income 6,925,788 13.6 Global Fixed Income 1,806,710 3.6 ■ Global Fixed Income 1,774,837 3.5 ■ Other Fixed Income 1,972,877 4.0 ■ Other Fixed Income 1,978,415 3.9 Real Estate 5,159,344 10.3 7 Real Estate 5,257,174 10.3 Cash Equivalent 923,559 UH 10 Cash Equivalent 877,417 1.7 Asset Allocation By Manager as of March 31, 2018 : $4999209204 Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2018 Asset Allocation By Manager as of June 30, 2018 : $5190319755 Market Value Allocation Market Value Allocation ■ Vanguard Total Stock Market (VITSX) 24,492,747 49.1 ■ Vanguard Total Stock Market (VITSX) 25,449,555 49.9 ■ RBC Global (Voyageur) 8,653,602 17.3 ■ RBC Global (Voyageur) 8,768,569 17.2 ■ Galliard Core Fixed Income 4,699,798 9.4 ■ Galliard Core Fixed Income 4,698,915 9.2 Intercontinental 3,143,321 6.3 Intercontinental 3,229,259 6.3 ■ American Core Realty Fund 2,040,417 4.1 ■ American Core Realty Fund 2,052,496 4.0 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,806,710 3.6 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,774,837 3.5 Crescent Direct Lending Fund 1,615,799 3.2 Crescent Direct Lending Fund 1,516,056 3.0 Galliard TIPS 1,210,986 2.4 Galliard TIPS 1,218,462 2.4 ■ Vanguard Inflation -Protected Secs (VAIPX) 989,601 2.0 Vanguard Inflation -Protected Secs (VAIPX) 997,905 2.0 Receipt & Disbursement 893,528 1.8 Receipt & Disbursement 846,678 1.7 ■ Crescent Direct Lending II Fund 357,078 0.7 ■ Crescent Direct Lending II Fund 462,359 0.9 ■ Vanguard Short Term Bond Index (VSCSX) 16,616 0.0 ■ Vanguard Short Term Bond Index (VSCSX) 16,663 0.0 Asset Allocation vs. Target Allocation Total Domestic Equity -0.1 % Total International Equity Total Domestic Fixed Income -1.4% Total Global FI -1.5% Total Real Estate 0.3% 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 0.7% 1.4% Asset Allocation vs. Target Allocation Total Fund As of June 30, 2018 2.2% 2.8% 3.5% 4.2% 12 $ Allocation (%) Target (%) Total Domestic Equity 25,449,555 49.9 50.0 Total International Equity 8,768,569 17.2 15.0 Total Domestic Fixed Income 6,931,946 13.6 15.0 Total Global FI 1,774,837 3.5 5.0 Total Real Estate 5,281,755 10.3 10.0 Total Other Fixed Income 1,978,415 3.9 5.0 Receipt & Disbursement 846,678 1.7 0.0 Total Fund 51,031,755 100.0 100.0 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 Global FI PIMCO Diversified Income Fund Instl (PDIIX) Total Other Fixed Income Crescent Direct Lending Fund Crescent Direct Lending II Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Jun -2018 32,193,323 67.61 34,218,124 67.06 26,449,666 49.87 25,449,555 49.87 8,768,669 17.18 8,768,569 17.18 10,686,198 20.94 6,931,946 13.68 4,698,915 9.21 1,218,462 2.39 16,663 0.03 997,905 1.96 1,774,837 3.48 1,774,837 3.48 1,978,416 3.88 1,516,056 2.97 462,359 0.91 6,281,766 10.36 2,052,496 4.02 3,229,259 6.33 846,678 1.66 61,031,766 100.00 Mar -2018 32,193,323 67.61 33,146,360 66.40 24,492,747 49.06 24,492,747 49.06 8,663,602 17.33 8,653,602 17.33 10,696,688 21.43 6,917,001 13.86 4,699,798 9.41 1,210,986 2.43 16,616 0.03 989,601 1.98 1,806,710 3.62 1,806,710 3.62 1,972,877 3.96 1,615,799 3.24 357,078 0.72 6,183,738 10.38 2,040,417 4.09 3,143,321 6.30 893,628 1.79 49,920,204 100.00 13 Dec -2017 32,193,323 67.61 36,666,962 71.01 26,777,676 63.48 26,777,576 53.48 8,778,386 17.63 8,778,386 17.53 8,962,842 17.88 7,606,687 14.99 4,746,117 9.48 1,235,959 2.47 117,161 0.23 1,406,350 2.81 - 0.00 - 0.00 1,447,266 2.89 1,447,255 2.89 - 0.00 6,088,367 10.16 2,025,745 4.05 3,062,622 6.12 472,631 0.94 60,069,802 100.00 Asset Allocation Asset Allocation History By Portfolio As of June 30, 2018 Sep -2017 687,828 1.23 47,686,478 100.00 Jun -2017 32,193,323 67.61 26,181,638 62.81 25,181,638 52.81 7,011,686 14.70 7,011,686 14.70 9,893,096 20.76 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 - 0.00 - 0.00 1,412,680 2.96 1,412,680 2.96 - 0.00 6,011,230 10.61 2,021,097 4.24 2,990,133 6.27 687,828 1.23 47,686,478 100.00 Jun -2017 30,670,328 66.69 24,087,147 62.38 24,087,147 52.38 6,683,181 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 - 0.00 - 0.00 1,326,600 2.88 1,326,500 2.88 - 0.00 4,934,162 10.73 2,013,359 4.38 2,920,793 6.35 634,926 1.38 46,989,316 100.00 3 Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 c 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 L' _ 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Other Fixed Income Real Estate Cash Equivalent Historical Asset Allocation by Segment Total Fund October 1, 2007 To June 30, 2018 14 6/18 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of June 30, 2018 76.0 68.0 60.0 52.0 44.0 36.0 c 0 28.0 Q 20.0 O O 12.0 O 4.0 p O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 49.87 (24) 17.18 (50) 13.58 (94) 3.48 (78) 3.88 (77) 10.35 (22) 1.66 (35) 5th Percentile 59.24 28.44 47.21 9.23 31.73 13.96 6.39 1 st Quartile 49.21 22.30 35.03 5.01 16.99 10.04 2.13 Median 42.30 17.12 27.84 4.53 9.88 7.71 1.10 3rd Quartile 34.79 13.77 20.50 3.63 3.94 5.07 0.50 95th Percentile 21.20 8.60 13.34 0.31 0.91 2.56 0.06 CJ 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2018 Financial Reconciliation Quarter to Date In Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 04/01/2018 Transfers Fees Expenses Deprec. 06/30/2018 Total Equity 33,146,350 195 -195 -1,471 250,710 822,535 34,218,124 Total Domestic Equity 24,492,747 - - - 109,190 847,618 25,449,555 Vanguard Total Stock Market (VITSX) 24,492,747 - - - 109,190 847,618 25,449,555 Total International Equity 8,653,602 195 -195 -1,471 141,520 -25,083 8,768,569 RBC Global (Voyageur) 8,653,602 195 -195 -1,471 141,520 -25,083 8,768,569 Total Fixed Income 10,696,588 -9,879 -3,392 -151 22,846 -20,816 10,685,198 Total Domestic Fixed Income 6,917,001 - -3,392 -151 7,430 11,058 6,931,946 Galliard Core Fixed Income 4,699,798 -3,392 - - 2,508 4,698,915 Galliard TIPS 1,210,986 - -151 1,018 6,610 1,218,462 Vanguard Short Term Bond Index (VSCSX) 16,616 - 110 -63 16,663 Vanguard Inflation -Protected Secs (VAIPX) 989,601 - 6,302 2,002 997,905 Total Global FI 1,806,710 -15,417 15,417 -31,873 1,774,837 PIMCO Diversified Income Fund Instl (PDI IX) 1,806,710 -15,417 15,417 -31,873 1,774,837 Total Other Fixed Income 1,972,877 5,538 - - 1,978,415 Crescent Direct Lending Fund 1,615,799 -99,743 1,516,056 Crescent Direct Lending II Fund 357,078 105,281 - - - 462,359 Total Real Estate 5,183,738 -24,394 -10,481 62,541 70,350 5,281,755 American Core Realty Fund 2,040,417 -24,394 -5,660 30,240 11,892 2,052,496 Intercontinental 3,143,321 - - - -4,821 - 32,301 58,458 3,229,259 Receipt & Disbursement 893,528 34,077 672,783 -740,377 - -16,653 3,319 - 846,678 Total Fund Portfolio 49,920,204 - 672,783 -740,377 -14,068 -18,274 339,417 872,069 51,031,755 In Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2017 To June 30, 2018 Financial Reconciliation Fiscal Year to Date 17 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2017 Transfers Fees Expenses Deprec. 06/30/2018 Total Equity 32,193,323 -765,009 -34,991 -4,151 565,386 2,263,565 34,218,124 Total Domestic Equity 25,181,638 -2,200,000 - - 341,831 2,126,086 25,449,555 Vanguard Total Stock Market (VITSX) 25,181,638 -2,200,000 - - 341,831 2,126,086 25,449,555 Total International Equity 7,011,686 1,434,991 -34,991 -4,151 223,555 137,479 8,768,569 RBC Global (Voyageur) 7,011,686 1,434,991 -34,991 -4,151 223,555 137,479 8,768,569 Total Fixed Income 9,893,096 767,435 -13,717 -46,332 55,728 28,988 10,685,198 Total Domestic Fixed Income 8,480,416 -1,519,406 -10,842 -454 40,312 -58,080 6,931,946 Galliard Core Fixed Income 4,744,096 594 -10,842 - - -34,934 4,698,915 Galliard TIPS 1,229,296 -20,000 - -454 3,303 6,317 1,218,462 Vanguard Short Term Bond Index (VSCSX) 1,117,229 -1,100,000 - 6,862 -7,428 16,663 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 -400,000 30,147 -22,035 997,905 Total Global FI - 1,784,584 15,417 -25,163 1,774,837 PIMCO Diversified Income Fund Instl (PDIIX) - 1,784,584 - - 15,417 -25,163 1,774,837 Total Other Fixed Income 1,412,680 502,257 -2,875 -45,878 - 112,231 1,978,415 Crescent Direct Lending Fund 1,412,680 39,898 -2,875 -45,878 112,231 1,516,056 Crescent Direct Lending II Fund - 462,359 - - - - 462,359 Total Real Estate 5,011,230 -73,025 -36,222 178,749 201,023 5,281,755 American Core Realty Fund 2,021,097 -73,025 -16,873 90,214 31,083 2,052,496 Intercontinental 2,990,133 - - -19,349 - 88,535 169,940 3,229,259 Receipt & Disbursement 587,828 70,600 2,462,948 -2,195,952 - -85,522 6,777 - 846,678 Total Fund Portfolio 47,685,478 - 2,462,948 -2,195,952 -84,929 -136,004 806,639 2,493,576 51,031,755 17 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of June 30, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 2.40 6.73 10.73 Q Qd 9.79 - 6.10 11/01/2000 Total Fund Policy 2.07 5.62 9.30 7.95 9.27 5.73 Total Fund (New Mgrs) (Net) 2.40 6.73 10.73 8.84 9.79 6.23 10/01/2007 Total Fund Policy 2.07 5.62 9.30 7.95 9.27 6.68 Total Fund (Gross) 2.43 (9) 6.91 (7) 11.00 (6) 9.16 (3) 10.12 (3) 6.71 (14) 11/01/2000 Total Fund Policy 2.07 (19) 5.62 (24) 9.30 (29) 7.95 (14) 9.27 (12) 5.73 (68) All Public Plans -Total Fund Median 1.26 4.79 8.50 6.91 8.15 6.05 Total Fund (New Mgrs) (Gross) 2.43 (9) 6.91 (7) 11.00 (6) 9.16 (3) 10.12 (3) 6.75 (8) 10/01/2007 Total Fund Policy 2.07 (19) 5.62 (24) 9.30 (29) 7.95 (14) 9.27 (12) 6.68 (10) All Public Plans -Total Fund Median 1.26 4.79 8.50 6.91 8.15 5.79 Total Equity 3.24 8.83 1 14.23 1 10.98 7.03 01/01/2001 Total Equity Policy 2.78 7.91 13.07 10.18 11.85 5.78 Total Domestic Equity 3.91 (18) 10.05 (33) 15.05 (37) 11.74 (38) 13.32 (52) 7.07 (36) 11/01/2000 Total Domestic Equity Policy 3.89 (18) 9.76 (40) 14.78 (41) 11.58 (41) 13.29 (53) 5.80 (93) IM U.S. Large Cap Core Equity (SA+CF) Median 2.89 9.24 14.24 11.12 13.35 6.79 Total International Equity 1.35 (3) 5.14 (5) 12.00 (4) 8.65 (12) 10.37 (7) 6.84 (47) 11/01/2000 MSCI EAFE Index -0.97 (17) 1.81 (30) 7.37 (34) 5.41 (45) 6.93 (49) 4.64 (99) IM International Large Cap Value Equity (SA+CF) Median -2.18 0.47 6.29 5.19 6.86 6.62 Total Fixed Income 0.02 0.81 2.02 2.98 2.87 4.83 11/01/2000 Total Fixed Policy 0.09 -1.04 -0.32 1.27 1.83 4.43 Total Domestic Fixed Income 0.27 (17) -0.23 (17) 0.53 (13) 1.74 (30) 2.03 (45) 4.52 (52) 11/01/2000 Total Domestic Fixed Policy 0.09 (60) -1.04 (80) -0.32 (81) 1.27 (82) 1.83 (69) 4.43 (65) IM U.S. Intermediate Duration (SA+CF) Median 0.12 -0.75 -0.03 1.53 1.98 4.55 Total Global FI -0.92 (32) N/A N/A N/A N/A -0.92 (32) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) -0.44 (14) -0.58 (42) 0.85 (39) 3.68 (10) 4.07 (3) -0.44 (14) IM Global Fixed Income (MF) Median -2.21 -0.95 0.44 2.27 1.76 -2.21 Total Real Estate _ 2.58 (27) 7.67 (28) 10.12 (23) 10.97 (33) 12.14 (34) 6.11 (28) 10/01/2007 NCREIF Fund Index-ODCE (VVV) 2.03 (69) 6.43 (63) 8.42 (71) 9.36 (73) 11.03 (64) 5.28 IM U.S. Open End Private Real Estate (SA+CF) Median 2.20 6.97 8.87 9.83 11.66 5.36 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 June 30, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 3.91 (20) 9.83 (25) 14.82 (26) 11.59 (12) 13.27 (17) 13.78 (18) 03/01/2013 Vanguard Total Stock Market Index Hybrid 3.91 (19) 9.84 (24) 14.83 (26) 11.60 (12) 13.28 (16) 13.81 (17) IM U.S. Multi -Cap Core Equity (MF) Median 2.71 8.08 12.49 9.36 11.67 12.30 RBC Global (Voyageur) 1.35 (3) 5.14 (5) 12.00 (4) 8.65 (12) 10.37 (7) 4.80 (12) 11/01/2007 MSCI EAFE Index -0.97 (17) 1.81 (30) 7.37 (34) 5.41 (45) 6.93 (49) 1.51 (73) IM International Large Cap Value Equity (SA+CF) Median -2.18 0.47 6.29 5.19 6.86 2.47 Galliard Core Fixed Income 0.05 (73) -0.74 (50) 0.05 (42) 1.68 (34) 2.15 (34) 3.60 (69) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 0.09 (60) -1.04 (80) -0.32 (81) 1.27 (82) 1.83 (69) 3.46 IM U.S. Intermediate Duration (SA+CF) Median 0.12 -0.75 -0.03 1.53 1.98 3.78 Galliard TIPS 0.63 (81) 0.79 (81) 1.50 (90) 1.54 (80) 1.28 (82) 3.05 (97) 10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year 0.61 (87) 0.75 (86) 1.45 (91) 1.50 (90) 1.21 (93) 3.11 (97) IM U.S. TIPS (SA+CF) Median 0.74 1.23 2.14 1.97 1.71 3.82 Vanguard Short Term Bond Index (VSCSX) 0.28 (24) -0.80 (54) -0.14 (47) 1.57 (23) N/A 1.58 (24) 01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index 0.29 (24) -0.60 (39) 0.15 (36) 1.70 (17) 2.03 (9) 1.75 (17) IM U.S. Intermediate Investment Grade (MF) Median 0.12 -0.75 -0.20 1.14 1.29 1.10 PIMCO Diversified Income Fund Instl (PDIIX) -0.92 (32) N/A N/A N/A N/A -0.92 (32) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) -0.44 (14) -0.58 (42) 0.85 (39) 3.68 (10) 4.07 (3) -0.44 (14) IM Global Fixed Income (MF) Median -2.21 -0.95 0.44 2.27 1.76 -2.21 American Core Realty Fund 2.09 (65) 6.17 (72) 8.17 (77) 8.75 (83) 10.54 (82) 4.98 (83) 10/01/2007 American Core Realty Policy 2.10 (64) 6.56 (62) 8.57 (61) 9.61 (71) 11.11 (63) 7.19 (4) IM U.S. Open End Private Real Estate (SA+CF) Median 2.20 6.97 8.87 9.83 11.66 5.36 Intercontinental 2.89 (18) 8.67 (12) 11.42 (6) 12.59 (17) 13.16 (24) 14.08 (35) 10/01/2010 NCREIF Fund Index-ODCE 2.03 (69) 6.43 (63) 8.42 (71) 9.36 (73) 11.03 (64) 12.14 (78) IM U.S. Open End Private Real Estate (SA+CF) Median 2.20 6.97 8.87 9.83 11.66 12.96 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 June 30, 2018 Comparative Performance - IRR QTR 1 YR 3 YR 6 YR Inception Inception Date Crescent Direct Lending Fund 0.00 6.63 8.21 N/A 7.66 10/14/2014 Crescent Direct Lending II Fund 0.00 N/A N/A N/A 0.00 03/13/2018 20 Comparative Performance Fiscal Year Returns Total Fund As of June 30, 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) 6.73 (10) 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 5.62 (24) 12.89 (36) 10.64 (19) 0.55 (26) 11.38 (23) 15.00 (13) 19.61 (18) 2.51 (11) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 4.79 (71) 12.19 4.79 9.66 -0.53 10.17 12.50 17.96 -0.53 0.29 9.87 1.75 Total Fund (New Mgrs) (Net) 6.73 (10) 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 5.62 (24) 12.89 (36) 10.64 (19) 0.55 (26) 11.38 (23) 15.00 (13) 19.61 (18) 2.51 (11) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 4.79 (54) 12.19 5.62 9.66 -0.53 10.17 12.50 17.96 0.55 0.29 9.87 1.75 Total Fund (Gross) 6.91 (7) 14.46 (11) 11.61 (7) 0.63 (26) 12.21 (9) 16.33 (6) 19.81 (16) -0.46 (68) 11.40 (18) 1.43 (63) Total Fund Policy 5.62 (24) 12.89 (36) 10.64 (19) 0.55 (26) 11.38 (23) 15.00 (13) 19.61 (18) 2.51 (11) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 4.79 22.69 12.19 10.74 9.66 -4.36 -0.53 10.08 10.17 27.54 12.50 24.74 17.96 1.81 0.29 19.65 9.87 7.06 1.75 -8.27 Total Fund (New Mgrs) (Gross) 6.91 (7) 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (9) 16.33 (5) 19.81 (15) -0.45 (68) 11.40 (18) 1.39 (54) Total Fund Policy 5.62 (24) 12.89 (36) 10.64 (19) 0.55 (26) 11.38 (23) 15.00 (13) 19.61 (18) 2.51 (11) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 4.79 -0.71 12.19 4.31 9.66 -0.23 -0.53 0.61 10.17 4.21 12.50 2.31 17.96 2.61 0.29 -1.30 9.87 5.88 1.75 -1.04 Total Equity 0.25 (87) 19.60 W 1� -1.62 W 16.4 23.09 W 27.08 13.61 Total Equity Policy 7.91 (84) 19.00 13.13 -2.28 14.65 22.30 26.46 -1.66 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 Global FI Blmbg. Barc. Global Credit (Hedged) IM Global Fixed Income (MF) Median 10.05 (33) 18.64 (52) 15.21 (25) -0.59 (62) 17.58 (69) 21.85 (34) 27.76 (62) 9.76 (40) 18.71 (51) 14.96 (28) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 9.24 (65) 18.74 13.17 0.02 19.25 20.70 29.70 5.14 (5) 22.69 (35) 10.74 (28) -4.36 (19) 10.08 (8) 27.54 (18) 24.74 (3) 1.81 (30) 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) 0.47 20.70 8.34 -9.40 5.75 22.94 15.36 *1 3.31 4= 1.40 1.69 (53) 11.05 (28) 15.99 6.34 � -1.04 7.68 0.25 13.54 3.57 2.95 2.74 -0.71 4.31 -0.23 (17) 0.61 (61) 4.21 (30) 2.31 (73) 2.61 (64) -1.30 (95) 5.88 (43) -1.04 (80) 0.25 (87) 3.57 (73) 2.95 (32) 2.74 (58) -0.71 (77) 4.31 (84) -0.75 0.69 3.90 2.70 2.88 -0.27 5.56 N/A N/A 0.81 (100) -7.63 (91) 6.31 (12) 3.53 (2) N/A 0.09 (17) -2.69 (94) 9.71 (19) -3.83 (49) -0.07 (96) -4.60 (82) N/A -0.95 1.02 7.39 -3.89 3.37 -1.81 7.17 N/A N/A N/A N/A N/A N/A N/A -0.58 (42) 3.04 (28) 9.19 (24) 0.86 (17) 6.83 (9) 1.46 (8) 11.61 (5) -0.95 1.02 7.39 -3.89 3.37 -1.81 7.17 -3.30 (90) 14.19 (8) -4.29 (38) 0.55 (58) 10.96 (31) -6.91 (64) 1.16 9.50 -5.78 -8.75 (52) 11.69 (15) 11.87 (19) -8.94 (54) 3.71 (65) 3.80 (65) -8.68 4.99 6.25 4.67 9.27 10.63 4.22 7.52 9.69 4.67 (13) 9.27 (22) 10.53 (70) 4.22 (23) 7.52 (77) 9.69 (81) 3.60 8.25 11.51 N/A N/A N/A N/A N/A N/A 1.74 7.68 13.54 N/A N/A N/A 1.69 (53) 11.05 (28) 15.99 (27) 1.74 7.68 13.54 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 Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2018 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 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 Total Real Estate 7.67 (28) 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 (32) NCREIF Fund Index-ODCE 6.43 (63) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (43) 6.97 (43) -35.19 (49) IM U.S. Open End Private Real Estate (SA+CF) Median 6.97 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 -35.32 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 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 Templeton Global Bond Fund (FBNRX) FTSE World Government Bond Index PIMCO Diversified Income Fund Instl (PDIIX) Blmbg. Barc. Global Credit (Hedged) IM Global Fixed Income (MF) Median Vanguard Short Term Bond Index (VSCSX) Blmbg. Barc. U.S. Corporate 1-5 Year Index IM U.S. Intermediate Investment Grade (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA+CF) Median Intercontinental NCREIF Fund Index-ODCE IM U.S. Open End Private Real Estate (SA+CF) Median Comparative Performance Fiscal Year Returns Total Fund As of June 30, 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 (44) 0.53 (22) 15.69 (43) 21.94 (37) 13.76 (22) 3.17 (55) 19.15 (40) 19.27 (64) 29.19 (39) 3.78 (30) 12.65 (35) -1.85 (37) 14.71 20.82 11.64 3.61 18.15 20.25 27.65 1.37 11.27 -3.01 5.14 (5) 22.69 (35) 10.74 (28) -4.36 (19) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (52) 11.69 (15) 11.87 (19) 1.81 (30) 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) -8.94 (54) 3.71 (65) 3.80 (65) 0.47 20.70 8.34 -9.40 5.75 22.94 15.36 -8.68 4.99 6.25 9.83 (25) 18.64 (36) 15.00 (15) -0.59 (33) 17.77 (31) N/A N/A N/A N/A N/A 9.84 (24) 18.64 (35) 14.99 (15) -0.55 (33) 17.77 (31) 21.60 (59) 30.28 (16) 0.71 (26) 11.16 (27) -6.03 (55) 8.08 17.32 11.67 -1.83 16.29 22.80 26.64 -1.49 9.38 -5.52 -0.74 (50) 0.44 (73) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (27) 9.63 (17) 12.08 (38) -1.04 (80) 0.25 (87) 3.57 (73) 2.95 (32) 2.74 (58) -0.71 (77) 4.31 (84) 4.22 (23) 7.52 (77) 9.69 (81) -0.75 0.69 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 11.51 0.79 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 0.75 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 N/A N/A 0.83 -7.63 6.33 3.54 N/A N/A N/A N/A 0.09 -2.69 9.71 -3.83 -0.07 -4.60 3.29 4.61 4.99 13.78 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.58 (42) 3.04 (28) 9.19 (24) 0.86 (17) 6.83 (9) 1.46 (8) 11.61 (5) 1.69 (53) 11.05 (28) 15.99 (27) -0.95 1.02 7.39 -3.89 3.37 -1.81 7.17 1.74 7.68 13.54 -0.80 (54) 1.55 (25) 3.40 (24) N/A N/A N/A N/A N/A N/A N/A -0.60 (39) 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) -0.75 0.84 2.71 1.21 1.67 -0.51 4.93 1.99 7.52 10.46 6.17 (72) 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 (32) 6.56 (62) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) 18.03 (44) 5.84 (56) -22.09 (5) 6.97 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 -35.32 8.67 (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 6.43 (63) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (43) 6.97 (43) -35.19 (49) 6.97 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 -35.32 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 23 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund ■ 16.00 - 14.00 0 12.00 0 0 10.00 0 8.00 _ c 0 K 6.00 • 4.00 2.00 • • 0.00 -2.00 - • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 2.43 (9) 6.91 (7) 11.00 (6) 13.02 (4) 9.16 (3) 7.97 (5) 10.12 (3) • Total Fund Policy 2.07 (19) 5.62 (24) 9.30 (29) 11.09 (31) 7.95 (14) 7.15 (14) 9.27 (12) Median 1.26 4.79 8.50 10.29 6.91 6.02 8.15 Comparative Performance 28.00 24.00 20.00 16.00 12.00 c K 8.00 4.00 0.00 -4.00 -8.00 Performance Review Total Fund Portfolio As of June 30. 2018 IM • • Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Total Fund Portfolio 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (9) 16.33 (5) 19.81 (15) • Total Fund Policy 12.89 (36) 10.64 (19) 0.55 (26) 11.38 (23) 15.00 (13) 19.61 (18) Median 12.19 9.66 Total Fund Portfolio -0.16 (41) -0.53 10.17 12.50 17.96 2.66 (4) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Total Fund Portfolio -0.16 (41) 4.54 (7) 3.82 (22) 2.79 (63) 4.46 (47) 2.66 (4) Total Fund Policy -0.57 (72) 4.07 (26) 3.48 (46) 2.80 (63) 4.36 (53) 1.69 (17) All Public Plans -Total Fund Median -0.28 3.74 3.45 2.97 4.40 0.85 24 3 Yr Rolling Under/Over Performance - 5 Years 20.0 Over Performance 16.0 0 O 0 O 01 LL 12.0 0 v c O 00 LL 8.0 O 4.0 4.0 8.0 12.0 16.0 Total Fund Policy (% ) eOver Performance Earliest Date X Latest Date Performance Review Total Fund Portfolio As of June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years �OOe000888°0888888880000000 w 25.0 c 50.0 U! a E 75.0 U! Under 100.0 1 Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 20.0 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count Peer Group Scattergram - 3 Years 9.75 9.00 0 8.25 O «' 7.50 v K 6.75 6.00 4.80 4.84 4.88 4.92 4.96 5.00 5.04 5.08 Risk (Standard Deviation %) Return Standard Deviation 5.12 O Total Fund Portfolio 20 20(100%) 0 (0%) 0 (0%) 0 (0%) O Total Fund Policy 20 20(100%) 0 (0%) 0 (0%) 0 (0%) Peer Group Scattergram - 5 Years 11.05 10.40 O 9.75 ' 9.10 O v K 8.45 7.80 4.6 4.7 4.8 4.9 5.0 5.1 Risk (Standard Deviation %) Return Standard Deviation • Total Fund Portfolio 9.16 5.07 O Total Fund Portfolio 10.12 5.04 O Total Fund Policy 7.95 4.86 O Total Fund Policy 9.27 4.73 Median 6.91 4.99 Median 8.15 4.87 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.80 110.68 93.05 0.92 1.43 1.66 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 1.01 107.96 100.67 0.40 0.80 1.88 1.04 2.14 Total Fund Policy 0.00 100.00 100.00 1.00 2.11 25 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 24.00 44.00 20.00 36.00 28.00 16.00 20.00 12.00 c 12.00 v 8.00 K 4.00 4.00 4.00 0.00 -12.00 -4.00 -20.00 Performance Review Vanguard Total Stock Market (VITSX) As of June 30. 2018 -8.00 I Oct- Oct- Oct- Oct- Oct- Oct - 2016 2015 2014 2013 2012 2011 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2017 2016 2015 2014 2013 2012 • Vanguard Total Stock Market (VITSX) 3.91 (20) 9.83 (25) 14.82 (26) 6.64 (32) 11.59 (12) 0.47 (13) 13.27 (17) • Vanguard Total Stock Market (VITSX) 3.64 (36)5.00 (15)).59 (33)7.77 (31) N/A N/A • Vanguard Total Stock Market Index Hybrid 3.91 (19) 9.84 (24) 14.83 (26) 6.65 (32) 11.60 (12) 0.48 (12) 13.28 (16) • Vanguard Total Stock Market Index Hybrid 3.64 (35)1.99 (15)).55 (33)7.77 (31)1.60 (59)).28 (16) Median 2.71 8.08 12.49 5.43 9.36 8.66 11.67 Median 7.32 1.67 1.83 3.29 2.80 3.64 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Vanguard Total Stock Market (VITSX) -0.60 (48) 6.34 (40) 4.54 (40) 3.03 (41) 5.79 (40) 4.12 (42) Vanguard Total Stock Market Index Hybrid -0.60 (48) 6.34 (39) 4.55 (40) 3.04 (41) 5.79 (40) 4.11 (42) IM U.S. Multi -Cap Core Equity (MF) Median -0.63 5.99 4.28 2.85 5.48 3.59 O 3 Yr Rolling Under/Over Performance - 5 Years rn 14.0 Over > Performance x 12.0 '10.0 0 rn A 0 8.0 v A 6.0 6.0 8.0 10.0 Vanguard Total Stock Market Index Hybrid (%) • Under Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 12.41 11.68 O 10.95 «' 10.22 v K 9.49 8.76 1 1 1 10.08 10.14 10.20 10.26 10.32 10.38 10.44 10.50 Risk (Standard Deviation %) Return Standard Deviation Performance Review Vanguard Total Stock Market (VITSX) As of June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 10.16 • Vanguard Total Stock Market (VITSX) 13.27 9.87 O Vanguard Total Stock Market Index Hybrid 11.60 10.15 • Vanguard Total Stock Market Index Hybrid 13.28 9.86 y 0.0 10.41 Median 11.67 10.20 Historical Statistics - 3 Years Market Market Alpha Ratio � O Beta Risk w 25.0 � � � � O O O O ® O Vanguard Total Stock Market (VITSX) 0.03 100.00 50.0 `w -0.01 -0.19 1.07 1.00 5.88 a E 75.0 100.00 N/A v K 1.00 -67 Historical Statistics - 5 Years Under 100.0 Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 I 12.0 14.0 Total 5-25 25 -Median Median -75 75-95 Period Count Count Count Count lb Vanguard Total Stock Market (VITSX) 10 9 (90%; 1 (10%) 0 (0%) 0 (0%) • Vanguard Total Stock Market Index Hybrid 20 11 (55%; 9(45%) 0 (0%) 0 (0%) Peer Group Scattergram - 5 Years 13.78 13.25 CD 12.72 «' 12.19 v K 11.66 11.13 I 1 1 9.84 9.92 10.00 10.08 10.16 10.24 10.32 Risk (Standard Deviation %) Return Standard Deviation • Vanguard Total Stock Market (VITSX) 11.59 10.16 • Vanguard Total Stock Market (VITSX) 13.27 9.87 O Vanguard Total Stock Market Index Hybrid 11.60 10.15 • Vanguard Total Stock Market Index Hybrid 13.28 9.86 Median 9.36 10.41 Median 11.67 10.20 Historical Statistics - 3 Years Market Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Vanguard Total Stock Market (VITSX) 0.03 100.00 100.07 -0.01 -0.19 1.07 1.00 5.88 Vanguard Total Stock Market Index Hybrid 100.00 N/A 1.07 1.00 -67 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Vanguard Total Stock Market (VITSX) 0.03 99.96 100.02 -0.02 -0.36 1.28 1.00 5.31 Vanguard Total Stock Market Index Hybrid 100.00 100.00 1.28 1.00 5.30 27 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) 30.00 25.00 20.00 15.00 O 10.00 E v K 5.00 • 0.00 -5.00 -10.00 -15.00 1 n Comparative Performance 44.00 36.00 28.00 A QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global (Voyageur) 1.35 (3) 5.14 (5) 12.00 (4) 20.68 (3) 8.65 (12) 5.94 (12) 10.37 (7) • MSCI EAFE Index -0.97 (17) 1.81 (30) 7.37 (34) 13.90 (50) 5.41 (45) 3.02 (53) 6.93 (49) Median -2.18 0.47 6.29 13.89 5.19 3.15 6.86 Comparative Performance 44.00 36.00 28.00 A 1 Qtr • J 20.00 Oct -2015 Oct -2014 12.00 Oct -2012 Oct -2011 c • v • K 4.00 - -4.00 • -12.00 ■ -20.00 Performance Review RBC Global (Voyageur) As of June 30. 2018 -28.00 1 Qtr 1 Qtr 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 • RBC Global (Voyageur) 22.69 (35) 10.74 (28) -4.36 (19) 10.08 (8) 27.54 (18) 24.74 (3) • MSCI EAFE Index 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) Median 20.70 8.34 -9.40 5.75 22.94 15.36 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 RBC Global (Voyageur) -1.41 (58) 5.22 (28) 6.53 (31) 6.27 (44) 7.47 (62) 0.85 (36) MSCI EAFE Index -1.41 (58) 4.27 (50) 5.47 (57) 6.37 (41) 7.39 (64) -0.68 (58) IM International Large Cap Value Equity (SA+CF) Median -1.26 4.22 5.65 6.01 7.73 -0.28 28 3 Yr Rolling Under/Over Performance - 5 Years 32.0 Over Performance 24.0 w o A o o 16.0 _„o 0 (,�+�� 0 8.0 0 p o 0 O U 0.0 m -8.0 -8.0 0.0 8.0 16.0 MSCI EAFE Index (%) OOver Performance Earliest Date GO Latest Date Peer Group Scattergram - 3 Years 10.00 8.00 E 6.00 4.00 11.60 11.80 12.00 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 8.65 12.31 y 0.0 O O O O O O O O O O 12.16 O MSCI EAFE Index O 11.94 O O O OO O w 25.00 11.53 Median O O 11.85 50.0-0 O O O O O O O O 6.86 O O a O O 0 0 0 0 0 0 0 E 75.0 Tracking Up K Information Sharpe Under 100.0 Error Market Market � 1 Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 24.0 32.0 Total Period 5-25 25 -Median Median -75 75-95 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%) Peer Group Scattergram - 5 Years 1.00 7.91 Historical Statistics - 5 Years 12.00 O Tracking Up • =s 10.00 E Sharpe Downside Error 8.00 Market Alpha Ratio Ratio 6.00 Risk Capture Capture 12.20 12.40 11.40 11.60 11.80 12.00 12.20 12.40 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation O RBC Global (Voyageur) 8.65 12.31 O RBC Global (Voyageur) 10.37 12.16 O MSCI EAFE Index 5.41 11.94 O MSCI EAFE Index 6.93 11.53 Median 5.19 11.85 Median 6.86 11.54 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.55 106.99 87.95 3.39 0.68 0.69 0.96 8.12 MSCI EAFE Index 0.00 100.00 100.00 1.00 7.91 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.76 110.26 90.52 3.53 0.68 0.84 0.97 7.17 MSCI EAFE Index 100.00 100.00 0.00 1.00 ORA Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 4.32 3.68 3.04 2.40 1.76 • • E M E 1.12 v K 0.48 -0.16 � • -0.80 -1.44 12.00 10.00 8.00 6.00 0 4.00 0 00 • 2.00 0.00 00 -2.00 Performance Review Galliard Core Fixed Inc As of June 30. 2018 W -2.08 1 -4.00 J Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 • Galliard Core Fixed Inc 0.05 (73) -0.74 (50) 0.05 (42) 0.00 (65) 1.68 (34) 1.78 (30) 2.15 (34) • Galliard Core Fixed Inc 0.44 (73) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) • Barclays Int Agg Index 0.09 (60) -1.04 (80) -0.32 (81) -0.24 (87) 1.27 (82) 1.42 (73) 1.83 (69) • Barclays Int Agg Index 0.25 (87) 3.57 (73) 2.95 (32) 2.74 (58) -0.71 (77) 4.31 (84) Median 0.12 -0.75 -0.03 0.14 1.53 1.61 1.98 Median 0.69 3.90 2.70 2.88 -0.27 5.56 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Galliard Core Fixed Inc -0.90 (52) 0.11 (31) 0.79 (34) 1.03 (43) 0.78 (61) -2.12 (88) Barclays Int Agg Index -1.05 (82) -0.07 (77) 0.72 (49) 0.92 (73) 0.68 (81) -2.05 (78) IM U.S. Intermediate Duration (SA+CF) Median -0.90 0.01 0.72 1.01 0.81 -1.84 W 3 Yr Rolling Under/Over Performance - 5 Years s.o Over Performance 4.0 o .o 'O O x 3.0 LL G v _l J 0 0 U 2.0 O0 v 0 X0 0 1.0 A C7 0.0 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 1.80 is 1.60 1.40 1.20 • 1.00 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 June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 1.68 1.96 / y 0.0 2.03 • Barclays Int Agg Index 1.27 1.93 v 25.0 1.98 0 0 0 0 0 0 0 0 0 0 Median 1.98 0 0 0 0 Historical Statistics - 3 Years 50.0 0 0 0 0 0 0 0 Up Down Information Sharpe Downside 0 0 0 Market Alpha EL E 75.0 O 0 0 0 O O 0 K Galliard Core Fixed Inc 0.28 107.33 90.84 0.41 Under 100.0 r T-1 I I I I - 11 0.00 Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 5.0 5-25 25 -Median Median -75 75-95 Information Sharpe Total Period Count Count Count Market Count 1p Galliard Core Fixed Inc 20 0 (0%) • Barclays Int Agg Index 20 0 (0%) Peer Group Scattergram - 5 Years 2.40 is 2.20 2.00 1.80 0 1.60 20(100%) 0 (0%) 0 (0%) 1 (5%) 12 (60%) 7 (35%) 1.98 1.89 1.92 1.95 1.98 2.01 Risk (Standard Deviation %) Return N 2.04 Standard Deviation 2.07 • Galliard Core Fixed Inc 1.68 1.96 • Galliard Core Fixed Inc 2.15 2.03 • Barclays Int Agg Index 1.27 1.93 • Barclays Int Agg Index 1.83 1.98 Median 1.53 1.89 Median 1.98 1.92 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.28 107.33 90.84 0.41 1.44 0.53 1.00 1.24 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 0.31 104.32 91.71 0.29 1.02 0.85 1.01 1.11 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 ca Peer Group Analysis - IM U.S. TIPS (SA+CF) 4.52 4.00 3.48 2.96 2.44 E ' 1.92 v K 1.40 0.88 0.36 -0.16 -0.68 •0 00 Performance Review Galliard TIPS As of June 30. 2018 17.00 14.00 11.00 8.00 5.00 AA E ' 2.00 v _1.00 i -4.00 -7.00 - -10.00 -13.00 32 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 0.63 (81) 0.79 (81) 1.50 (90) 0.60 (86) 1.54 (80) 0.72 (78) 1.28 (82) • Galliard TIPS -0.23 (38) 4.75 (95) -0.38 (19) 0.59 (86) -3.71 (10) 6.01 (98) O Barclays US TIPS 1-10 Yr 0.61 (87) 0.75 (86) 1.45 (91) 0.59 (86) 1.50 (90) 0.62 (89) 1.21 (93) • Barclays US TIPS 1-10 Yr -0.14 (35) 4.83 (95) -0.82 (55) 0.61 (81) -3.90 (18) 6.32 (92) Median 0.74 1.23 2.14 0.78 1.97 1.03 1.71 Median -0.52 6.56 -0.80 1.57 -5.73 9.02 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Galliard TIPS -0.39 (18) 0.55 (89) 0.70 (90) -0.50 (92) 1.42 (26) -1.82 (34) Barclays US TIPS 1-10 Yr -0.40 (19) 0.53 (92) 0.70 (90) -0.40 (75) 1.05 (87) -1.47 (15) IM U.S. TIPS (SA+CF) Median -0.71 1.26 0.89 -0.37 1.28 -2.33 32 3 Yr Rolling Under/Over Performance - 5 Years 4.0 Over -- Performance 2.0 rn a_ ~ 0.0 0 A -2.0 -4.0 -4.0 -2.0 0.0 Barclays US TIPS 1-10 Yr (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.20 200 Performance Review Galliard TIPS As of June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 1.54 2.35 • Galliard TIPS 1.28 y 0.0 3.11 O Barclays US TIPS 1-10 Yr 1.50 2.25 K 0 2.88 Median 1.97 v 25.00080 Median 1.71 3.62 Historical Statistics - 3 Years c v 50.0 -� 0 Tracking Up Down Information EL" 0 Error Market Market E 75.0 Ratio Ratio o D i0 0 0 0 Underw O e e 0 e 0 Capture 0 0 0 e 0 Performance 100.0 0.45 99.50 97.08 0.01 0.11 0.39 2.0 4.0 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 5-25 1.00 25 -Median Median -75 75-95 Total Period Count Up Count Count Information Count 1.80 1.60 • 1.40 2.00 2.20 2.40 2.60 2.80 3.00 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1-10 Yr 20 Peer Group Scattergram - 5 Years 1.80 is 1.60 1.40 1.20 O 1.00 2.60 2.80 2 (10%) 2 (10%) 5 (25%) 11 (55%) 2 (10%) 0 (0%) 2 (10%) 16 (80%) 0 3.00 3.20 3.40 Risk (Standard Deviation %) Return 3.60 Standard Deviation 3.80 • Galliard TIPS 1.54 2.35 • Galliard TIPS 1.28 3.11 O Barclays US TIPS 1-10 Yr 1.50 2.25 • Barclays US TIPS 1-10 Yr 1.21 2.88 Median 1.97 2.90 Median 1.71 3.62 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.45 99.50 97.08 0.01 0.11 0.39 1.03 1.32 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 0.83 99.31 96.65 0.03 0.10 0.30 1.04 1.82 Barclays US TIPS 1-10 Yr 100.00 100.00 1.00 33 Performance Review VG ST Bond Index (VSCSX) As of June 30. 2018 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 3.70 12.00 3.09 10.00 2.48 8.00 1.87 6.00 1.26 � E 0 c 4.00 0.65 0«'� 0 2.00 0 • 0.04 • 0.00 -0.57 -2.00 ■ 1.18 -1.79 -4 I -4.00 -2.40 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 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 0.28 (24) -0.80 (54) -0.14 (47) 0.61 (41) 1.57 (23) N/A N/A • Barclays US Corp 1-5 Yr Index 0.29 (24) -0.60 (39) 0.15 (36) 0.87 (28) 1.70 (17) 1.60 (12) 2.03 (9) Median 0.12 -0.75 -0.20 0.33 1.14 0.95 1.29 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 34 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 VG ST Bond Index (VSCSX) -1.03 (92) -0.05 (36) 0.66 (23) 0.89 (15) 0.75 (39) -0.75 (32) Barclays US Corp 1-5 Yr Index -0.80 (67) -0.09 (42) 0.76 (12) 0.93 (12) 0.94 (15) -0.81 (35) IM U.S. Intermediate Investment Grade (MF) Median -0.71 -0.13 0.53 0.69 0.70 -1.00 34 Peer Group Analysis - IM Global Fixed Income (MF) 6.00 4.00 2.00 0.00 v K -2.00 -4.00 -6.00 -8.00 Performance Review PIMCO Diversified Income Fund Inst) (PDIIX) As of June 30. 2018 16.00 • 12.00 • 8.00 0 4.00 E v 0.00 K -4.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • PIMCO Diversified Income Fund Instl (PDIIX) .0.92 (32) N/A N/A N/A N/A N/A N/A • Blmbg. Barc. Global Credit (Hedged) .0.44 (14) 0.58 (42) 0.85 (39) 2.38 (19) 3.68 (10) 3.14 (3) 4.07 (3) Median .2.21 0.95 0.44 0.83 2.27 0.56 1.76 Comparative Performance -8.00 -12.00 • -16.00 1 1 1 1 1 1 - Oct- Oct- Oct- Oct- Oct- Oct - 2016 2015 2014 2013 2012 2011 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - 2017 2016 2015 2014 2013 2012 • PIMCO Diversified Income Fund Instl (PDIIX) N/A N/A N/A N/A N/A N/A • Blmbg. Barc. Global Credit (Hedged) 3.04 (28;).19 (24;).86 (17;1.83 (9) 1.46(8) 1.61 (5) Median 1.02 7.39 3.89 3.37 1.81 7.17 35 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 PIMCO Diversified Income Fund Instl (PDIIX) N/A N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged) -1.15 (96) 1.02 (19) 1.44 (60) 1.79 (64) 1.52 (66) -1.70 (28) IM Global Fixed Income (MF) Median 0.74 0.67 1.59 2.27 1.95 -4.37 35 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 8.00 v K 5.00 2.00 -1.00 -4.00 00 0 O 0 1 1 1 I 29.00 26.00 23.00 20.00 17.00 - Oct -2016 Oct -2015 Oct -2014 Oct -2013 14.00 - w K 11.00 - • To To To To To 8.00 - • 1 YR 2 YR 3 YR 4 YR 5 YR 5.00 - Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 2.00 - 1.00 Performance Review American Core RE As of June 30. 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 O American Core RE 2.09 (65) 6.17 (72) 8.17 (77) 7.82 (82) 8.75 (83) 10.04 (74) 10.54 (82) • 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 2.10 (64) 6.56 (62) 8.57 (61) 8.35 (60) 9.61 (71) 10.82 (53) 11.11 (63) O American Core RE Policy 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) 11.77 (66) Median 2.20 6.97 8.87 8.47 9.83 11.03 11.66 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 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 American Core RE 2.23 (47) 1.73 (89) 1.88 (44) 1.97 (40) 2.27 (30) 1.20 (81) American Core RE Policy 2.17 (58) 2.15 (57) 1.89 (44) 1.71 (69) 1.83 (53) 2.16 (57) IM U.S. Open End Private Real Estate (SA+CF) Median 2.22 2.25 1.75 1.91 1.91 2.26 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over Performance .�.�. 14.0 K v 12.0 U • u 10.0 • `w X E 8.0 a 6.0 1 1 6.0 8.0 10.0 12.0 American Core RE Policy (%) • Under Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 10.08 9.72 O 9.36 «' 9.00 K • 8.64 8.28 1 1 1 1 0.99 1.08 1.17 1.26 1.35 1.44 Risk (Standard Deviation %) Return Performance Review American Core RE As of June 30. 2018 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 11.84 11.47 11.10 O «' 10.73 K 10.36 9 99 0 (0%) 0 (0%) 7 (35%) 13 (65%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 1 1.53 1.62 1.71 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 1.90 O American Core RE 3 Yr Rolling Percentile Ranking - 5 Years 1.22 • American Core RE 10.54 1.68 y c 0.0 1.14 • American Core RE Policy 11.11 1.34 Median 9.83 A K 1.62 Median 11.66 1.81 Historical Statistics - 3 Years w c 25.0 Tracking Up Down Information v v 50.0 Downside Error Market Market ° Ratio Ratio Beta =75.0 ° 8g° 808000 Capture 0 American Core RE 0.85 91.31 °1* 1.06 -0.95 5.94 0.80 0.00 American Core RE Policy 0.00 100.00 K 0.00 1.00 0.00 O Oo0 100.0 Tracking Up Down Information Under Downside Error Market Market Alpha Ratio Ratio Beta Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 1 14.0 16.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 11.84 11.47 11.10 O «' 10.73 K 10.36 9 99 0 (0%) 0 (0%) 7 (35%) 13 (65%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 1 1.53 1.62 1.71 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 1.90 O American Core RE 8.75 1.22 • American Core RE 10.54 1.68 O American Core RE Policy 9.61 1.14 • American Core RE Policy 11.11 1.34 Median 9.83 1.62 Median 11.66 1.81 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 0.85 91.31 N/A 1.06 -0.95 5.94 0.80 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 95.06 N/A -0.29 -0.50 5.37 0.98 0.00 American Core RE Policy 0.00 100.00 N/A 1.00 0.00 37 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 I• • 2.00 �J -1.00 -4.00 WA 29.00 26.00 23.00 20.00 17.00 Z; 14.00 K 11.00 8.00 5.00 2.00 1.00 u Performance Review Intercontinental As of June 30. 2018 QTR FYTD 1 YR 0 3 YR 11.00 5 YR Oct -2016 Oct -2015 To To Sep -2017 Sep -2016 E O • Intercontinental 2.89 (18) 8.67 (12) 11.42 (6) 8.00 12.59 (17) 12.96 (23) 0 v 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) 13.38 (43) K 6.43 (63) 8.42 (71) 8.15 (71) 9.36 (73) 10.61 (59) 11.03 (64) 0 a 5.00 13.04 (53) 11.61 (67) Median 2.20 6.97 8.87 • 2.00 �J -1.00 -4.00 WA 29.00 26.00 23.00 20.00 17.00 Z; 14.00 K 11.00 8.00 5.00 2.00 1.00 u Performance Review Intercontinental As of June 30. 2018 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Oct -2016 Oct -2015 To To Sep -2017 Sep -2016 Oct -2014 Oct -2013 To To Sep -2015 Sep -2014 Oct -2012 Oct -2011 To To Sep -2013 Sep -2012 • Intercontinental 2.89 (18) 8.67 (12) 11.42 (6) 12.35 (6) 12.59 (17) 12.96 (23) 13.16 (24) • Intercontinental 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) 13.38 (43) • NCREIF Fund Index 2.03 (69) 6.43 (63) 8.42 (71) 8.15 (71) 9.36 (73) 10.61 (59) 11.03 (64) • NCREIF Fund Index 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) Median 2.20 6.97 8.87 8.47 9.83 11.03 11.66 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 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Dec -2016 Intercontinental 2.79 (16) 2.75 (15) 2.53 (14) 1.43 (87) 1.71 (55) 5.71 (1) NCREIF Fund Index 2.20 (54) 2.07 (69) 1.87 (44) 1.70 (70) 1.77 (54) 2.11 (61) IM U.S. Open End Private Real Estate (SA+CF) Median 2.22 2.25 1.75 1.91 1.91 2.26 38 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over r. Performance '-x-15.0 cc. o 00 o r 0000 O vO O 12.0 0 U c 9.0 6.0 6.0 9.0 12.0 NCREIF Fund Index (%) eOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 14.00 C 12.00 E 10.00 8.00 0.80 1.20 1.60 2.00 2.40 Risk (Standard Deviation %) Return Performance Review Intercontinental As of June 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 12.59 2.93 • Intercontinental y 0.0 2.88 O NCREIF Fund Index 9.36 1.17 O NCREIF Fund Index 11.03 1.39 c v 25.0 0 O O O 0 0 p 1.81 Historical Statistics - 3 Years 0 0 0 0 p 0 c Tracking Up p 0 Information Sharpe 50.0 Error Market Market Alpha Ratio Ratio Q Risk EL Capture O O O O O O O O O O O O O O 1.21 75.0 1.35 0.00 NCREIF Fund Index 100.00 p O O O K Historical Statistics - 5 Years Tracking Up Down 100.0 Information Sharpe Downside Error Market Market Alpha Ratio Under Beta Risk Capture Capture Performance 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 6/18 15.0 18.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count O 2.80 3.20 3.60 Standard Deviation O Intercontinental 20 O NCREIF Fund Index 20 Peer Group Scattergram - 5 Years 13.68 is 12.96 E 12.24 «' 11.52 10.80 p 10.08 0.93 1.24 1.55 6 (30%) 14 (70%) 0(0%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 2.17 2.48 Risk (Standard Deviation %) Return 2.79 3.10 Standard Deviation 3.41 • Intercontinental 12.59 2.93 • Intercontinental 13.16 2.88 O NCREIF Fund Index 9.36 1.17 O NCREIF Fund Index 11.03 1.39 Median 9.83 1.62 Median 11.66 1.81 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.50 133.40 N/A -0.17 1.21 3.78 1.35 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 2.64 118.74 N/A 3.84 0.75 4.13 0.83 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 KE Private Equity Fund Overview Crescent Direct Lending Fund As of June 30, 2018 Fund Information Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower -middle -market companies. The Fund will seek to $3,120,000.0 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 $3,900,000.0 Capital Invested: $2,860,636 Management Fees: $3,788 Expenses: $151,273 $3,120,000.0 Interest: - Total Contributions: $2,860,636 $2,340,000.0 Remaining Capital Commitment: $540,257 Total Distributions: $1,659,530 $1,560,000.0 Market Value: $1,516,056 Inception Date: 10/14/2014 $780,000.0 Inception IRR: 7.6 NPI: 1.1 $0.0 ($780,000.0) — 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 6/18 Net Asset Value Distribution Contributions 40 3 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 June 30, 2018 Total Equity Policy ht (%) Allocation Mandate Weight (%) 41 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 41 Compliance Checklist Total Fund Winter Springs GE As of June 30, 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. 42 Vanguard Total RBC Global Yes No NIA Yes No NIA Galliard Yes No NIA American RE Intercontinental PIMCO Yes No NIA Yes No NIA Yes No TIPS Yes No NIA 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 PIMCO Diversified Income Fund Instl (PDIIX) Total Global FI Crescent Direct Lending Fund Crescent Direct Lending II 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 0.75 0.76 1.35 1.35 1.36 1.10 1.10 1.10 0.40 43 Market Value 25,449,555 26,449,666 8,768,569 8,768,669 4,698,915 1,218,462 16,663 6,931,946 1,774,837 1,774,837 1,516,056 462,359 1,978,416 3,229,259 2,052,496 6,281,766 846,678 51,031,755 Winter Springs General Employees General Plan and Trust Fee Analysis As of June 30, 2018 Estimated Annual Fee 10,180 10,180 83,301 83,301 11,747 1,828 20 14,693 13,311 13,311 20,467 6,242 26,709 35,522 22,577 68,099 206,193 Fee Schedule 0.04 % of Assets 0.95 % of Assets 0.25 % of Assets 0.15 % of Assets 0.12 % of Assets 0.75 % of Assets 1.35 % of Assets 1.35 % of Assets 1.10 % of Assets 1.10 % of Assets Disclosures Total Fund As of June 30, 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. 44 Report Statistics Definitions and Descriptions Active Return Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non -systemic return, or its historical performance not explained by movements of the market. Beta A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Distributed to Paid In (DPI) The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return Arithmetic difference between the manager's performance and the risk-free return over a specified time period. Excess Risk A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R -Squared The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R -Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return Compounded rate of return for the period. Sharpe Ratio Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk-adjusted performance. Standard Deviation A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Total Value to Paid In (NPI) The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund's life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. 45 Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time -weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non -infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 46 Putting clients first. AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom