The URL can be used to link to this page

Home My WebLink About2018 11 08 Regular 500 Quarterly Investment ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 500 November 8, 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 Fourth Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Return Report (48 Pages) Investment Performance Review Period Ending September 30, 2018 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom 3rd Quarter 2018 Market Environment Market returns were mixed across major equity and fixed income indices for the 3rd quarter of 2018 with many themes from the 2nd quarter repeating during the current period. Broad domestic equity indices pushed higher on continued strength in both economic and corporate earnings data. Corporate earnings continue to benefit from fiscal stimulus tailwinds in the form of the late 2017 tax reform. International indices underperformed domestic indices during the period, posting more muted returns in US dollar (USD) terms, as investors weighed relatively soft economic data, a strengthening USD and geopolitical concerns, especially around global trade relations. Fixed income returns were flat for the quarter as interest rates continued to rise. Domestic stocks rose as concerns around ongoing monetary policy tightening by the Federal Reserve (Fed) and an escalating trade war between the US and China were not substantial enough to dampen investor enthusiasm around the ongoing strength of the US economy. The US stock market represented by the Russell 3000 Index returned 7.1% and 17.6% for the quarter and 1 -year period respectively. International equity returns finished the quarter slightly positive with the MSCI ACWI ex US Index returning 0.7%. Developed market stocks pushed higher through the period, however, relatively subdued economic growth and ongoing political and trade uncertainty tempered returns versus domestic equities. The developed market MSCI EAFE Index gained 1.4% during the quarter. Emerging market stocks struggled in comparison, posting negative returns for the period, as trade tensions grew between the US and China. In addition, a strengthening USD caused headwinds for most international markets, but caused particular difficulties for emerging market countries that issue debt in USD. The MSCI Emerging Markets Index posted a small decline of -1.1% during the 3rd quarter. The relative outperformance of developed markets can also be seen in the 1 -year period with the MSCI EAFE and MSCI Emerging Markets indices returning 2.7% and -0.8% respectively. Interest rates on the US Treasury Yield Curve continued their year-to-date rise during the 3rd quarter as investor expectations for further Fed tightening of monetary policy increased during the period. The yield curve did flatten slightly as interest rates had the greatest increase in short-term maturities, but overall, the shift in rates was fairly consistent throughout the entire curve. The Fed did implement another interest rate increase following their September meeting citing the continued strength of the US economy and stable inflation. The broad market Bloomberg Barclays US Aggregate Index was flat for the quarter returning 0.0% and is slightly negative over the 1 -year period returning -1.2%. Corporate issues rebounded following underperformance during the first half of the year and were the only investment grade sector to post a positive return during the quarter, as they benefitted from tightening credit spreads and strong investor demand. Quarter Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts -1.1% S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt -0.6%E Bbg Barclays US TIPS -0.8% C Bbg Barclays MBS -0.1% Bbg Barclays Corp IG 3 -Month T -Bill The Market Environment Major Market Index Performance As of September 30, 2018 0.7% 1.4% 7.7% 7.1% 17.4% 5.0% 3.6% 0.0% 1.0% 0.5% -2.0% 0.0% 2.0% 1 -Year Performance MSCI ACWxUS 1.8% MSCI EAFE 2.7% MSCI Emerg Mkts -0.8% 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% 4.0% 6.0% 8.0% 17.9% 17.6% 17.8% 15.2% -1.2% -1.6% 0.4% -0.9% -1.2% 1.6% 0.0% 5.0% 10.0% 15.0% 20.0% l� Source: Investment Metrics 2 US equity index returns were positive across the style and capitalization spectrum during the 3rd quarter of 2018. US equity markets were pushed higher by the ongoing strength in US economic data and corporate earnings. Positive data releases in GDP, unemployment, retail sales, consumer consumption and investor sentiment highlighted the continued health of the US economy. Corporate earnings released during the quarter were also impressive. Earnings reported for S&P 500 companies were up over 20% on a year -over -year basis for the second straight quarter as corporate profits continued to benefit from the new tax code. The current expansion in US equity markets now marks the longest bull market in history. While the positive economic data drove returns through the quarter, trade negotiations with China broke down with both the US and China instituting several rounds of new tariffs during the period. Currently the US is imposing tariffs on $250 billion of Chinese imports with China placing tariffs on $110 billion worth of goods. Further action has been threatened by both countries While negotiations with China have been unsuccessful, progress was made in the renegotiation of the North American Free Trade Agreement (NAFTA) and discussions with the European Union (EU) appear to be moving ahead productively. During the quarter, large cap stocks outperformed mid and small cap equities across growth, value and core indices. The large cap Russell 1000 Index returned 7.4% for the quarter versus a 3.6% return for the Russell 2000 Index. The Russell 1000 benefitted from strong performance from some of its largest exposures. Apple Inc, Microsoft Corp and Amazon.com Inc alone make up over 10% of the index and posted quarterly returns of 22.4%, 16.4% and 17.8% respectively. Those same three stocks have gained 48.7%, 56.3% and 108.4% over the 1 -year period. This strong performance from some of the index's largest constituents has helped large caps outperform small caps over the 1 -year period as well with the Russell 1000 returning 17.8% over the trailing year while the Russell 2000 posted a still solid return of 15.2%. Growth stocks outperformed value stocks across the market cap spectrum during the 3rd quarter. The large cap Russell 1000 Growth Index was the best performing style index for the period returning a notable 9.2% for the quarter. The outperformance of growth indices relative to value indices is also evident over the 1 -year period as growth indices continue to show significant outperformance relative to their value counterparts. The returns for growth indices more than double the returns of the corresponding value indices over the last 12 months. 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 and utilities. 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 September 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% 30.0% l � Source: Investment Metrics 3 ■ Both S&P Dow Jones Indices and MSCI made changes to the Global Industry Classification Standard (GICS) sector configurations of their indices, creating a new GICS sector classification called Communication Services which replaced the Telecommunications sector on September 28, 2018. The Communication Services sector is comprised of companies in the Telecommunications sector, as well as certain companies formerly classified as Consumer Discretionary and Information Technology. As a result, the sector, went from a weighting of about 2% of the Russell 1000 Index to almost 10% post reclassification. Notable names now classified under Communication Services include Netflix, Alphabet, Facebook and Disney. This is just the second change to the GICS classifications since 1999. ■ Sector performance was broadly positive across large cap sectors for the 3rd quarter. Ten of eleven sectors had positive returns for the quarter with four outpacing the Russell 1000 Index return. The consumer discretionary sector continues to do well on the back of strong retail sales and increased consumer spending, gaining 7.6% for the period. Health care and technology stocks increased 14.3% and 12.5% during the quarter respectively, with companies in both sectors reporting strong earnings. Industrials benefitted from continued economic strength returning 9.7%. The largest detractors for the quarter were the materials, real estate and energy sectors which returned -0.1%, 0.6% and 0.9% respectively. Over the trailing 1 -year period, all large cap all sectors were positive. The information technology and consumer discretionary sectors were the best performers, returning over 30% over the last 12 months, and six of eleven sectors have returns over 10% for the year. ■ Quarterly results for small cap sectors were generally lower relative to their large capitalization counterparts. Nine of eleven sectors had positive returns during the period with six of eleven economic sectors outpacing the Russell 2000 Index return for the quarter. Energy, consumer staples and real estate posted negative returns for the period returning -2.9%, -1.4% and -0.5% respectively. Communications services and health care were the best performers returning 12.6% and 7.7%. 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 29.1%. Communication services, technology, and consumer discretionary also had particularly robust returns for the 1 -year period. ■ Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for seven 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 financials, technology and health care sectors were trading at a discount to their long-term average P/E ratios. Comm Services (9.7%) Consumer Disc (10.3%) Consumer Staples (6.4%) Energy (5.9%) Financials (13.9%) Health Care (13.9%) Industrials (10.0%) Info Technology (20.6%) Materials (2.9%) Real Estate (3.5%) Utilities (2.8%) The Market Environment GICS Sector Performance & (Sector Weight) As of September 30, 2018 Russell 1000 1 ❑Quarter 01 -Year 1.4% 13.3% 7.6% 5.5% 3.6% .9% 15.4% 4.1 8.6% 14.3% 18.7% 9.7% 11.8% 12.5% .7% 6% 4.7% 2.4% 1 4.1% 31.2% 37.3%1 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Russell 2000 1 ❑Quarter Ell -Year Comm Services (3.0%) Consumer Disc (12.2%) Consumer Staples (2.7%) Energy (4.9%) Financials (18.0%) Health Care (15.8%) Industrials (15.2%) Info Technology (13.8%) Materials (4.3%) Real Estate (7.1 %) Utilities (3.1 %) 12.6% 20.8% 3.7% 22. % -1.4% 12.19'o -2.9% 11.0% 0.9 7.8 /o 7.7 0 29.1 11.9° 5.8% 19.9% 5.4% 1 -0.5% 2.9% 6.4% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Source: Morningstar Direct As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represAr is backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. Russell 1000 Apple Inc Top r Weighted Weight 3.97% Stocks 1 -Qtr Return 22.4% 1 -Year Return 48.7% Sector Information Technology Microsoft Corp 3.15% 16.4% 56.3% Information Technology Amazon.com Inc 2.96% 17.8% 108.4% Consumer Discretionary Berkshire Hathaway Inc B 1.51% 14.7% 16.8% Financials Facebook Inc A 1.42% -15.4% -3.8% Communication Services JPMorgan Chase & Co 1.37% 8.9% 20.7% Financials Johnson & Johnson 1.35% 14.6% 9.1% Health Care Alphabet Inc Class C 1.32% 7.0% 24.4% Communication Services Alphabet IncA 1.31% 6.9% 24.0% Communication Services Exxon Mobil Corp 1.31% 3.8% 7.9% Energy W. e e Advanced Micro Devices Inc 0.10% 106.1% 142.3% Information Technology Square Inc A 0.10% 60.6% 243.7% Information Technology Paycom Software Inc 0.03% 57.2% 107.3% Information Technology Twilio Inc A 0.02% 54.0% 189.0% Information Technology Atlassian Corporation PLC A 0.03% 53.8% 173.5% Information Technology Molina Healthcare Inc 0.03% 51.8% 116.3% Health Care DexCom Inc 0.05% 50.6% 192.4% Health Care Match Group Inc 0.01% 49.5% 149.7% Communication Services Fortinet Inc 0.05% 47.8% 157.4% Information Technology FIAC/InterActiveCorp 0.06% 42.1% 84.3% Communication Services rr e e Floor & Decor Holdings Inc 0.01% -38.8% -22.5% Consumer Discretionary Twitter Inc 0.07% -34.8% 68.7% Communication Services IPG Photonics Corp 0.02% -29.3% -15.7% Information Technology Visteon Corp 0.01% -28.1% -24.9% Consumer Discretionary Zillow Group Inc A 0.01% -26.0% 10.1% Communication Services Zillow Group Inc C 0.02% -25.1% 10.0% Communication Services Western Digital Corp 0.06% -23.7% -30.4% Information Technology Wynn Resorts Ltd 0.05% -23.7% -13.3% Consumer Discretionary Extraction Oil & Gas Inc 0.00% -23.1% -26.6% Energy Tesla Inc 0.13% -22.8% -22.4% Consumer Discretionary The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of September 30, 2018 &Source: Morningstar Direct 5 - rrr Five Below Inc 0.31% 33.1% 137.0% Consumer Discretionary Etsy Inc 0.27% 21.8% 204.4% Consumer Discretionary Integrated Device Technology Inc 0.27% 47.5% 76.9% Information Technology Livallova PLC 0.27% 24.2% 76.9% Health Care Haemonetics Corp 0.26% 27.8% 155.4% Health Care Teladoc Health Inc 0.25% 48.8% 160.5% Health Care Ligand Pharmaceuticals Inc 0.25% 32.5% 101.6% Health Care HubSpot Inc 0.24% 20.4% 79.6% Information Technology Primerica Inc 0.23% 21.3% 49.2% Financials HealthEquity Inc 0.22% 25.7% 86.7% Health Care Top Russell 2000 CareDx Inc r Weight 0.04% 1 -Qtr Return 135.7% Quarter) 1 -Year Return 679.7% Sector Health Care Reata Pharmaceuticals Inc A 0.07% 133.8% 162.9% Health Care Invitae Corp 0.05% 127.6% 78.5% Health Care Rig Net Inc 0.01% 97.6% 18.3% Energy Tandem Diabetes Care Inc 0.10% 94.6% 486.8% Health Care Health Insurance Innovations Inc 0.03% 90.6% 325.2% Financials Funko Inc Class A 0.01% 88.8% N/A Consumer Discretionary LSB Industries Inc 0.01% 84.5% 23.2% Materials Viking Therapeutics Inc 0.04% 83.6% 812.0% Health Care Ra Pharmaceuticals Inc 0.01% 81.8% 23.9% Health Care Bottom r Weight Quarter) 1 -Year Sector Vital Therapies Inc 0.00% -96.0% -94.5% Health Care GTx Inc 0.00% -89.7% -81.4% Health Care Ampio Pharmaceuticals Inc 0.00% -76.9% -16.9% Health Care Innovate Biopharmaceuticals Inc 0.01% -71.0% -2.4% Health Care Zion Oil & Gas Inc 0.00% -68.4% -62.5% Energy Endologix Inc 0.01% -66.3% -57.2% Health Care Lannett Co Inc 0.01% -65.1% -74.3% Health Care Maiden Holdings Ltd 0.01% -62.6% -61.1% Financials Diebold Nixdorf Inc 0.02% -62.3% -80.1% Information Technology Sears Holdings Corp 0.00% -59.2% -86.7% Consumer Discretionary &Source: Morningstar Direct 5 ■ Broad international equity returns were mixed for the quarter. Most developed markets were positive in local currency and USD terms whereas emerging markets were negative in both local currency and USD terms. Performance was largely driven by the same catalysts as the US equity markets for the second straight quarter. We saw global macroeconomic data slow, but remain generally positive through the period, with returns being tempered by global trade tensions and ongoing political uncertainty. The USD continued to strengthen against most currencies for the period as 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 1.5% in local currency terms and 0.7% in USD terms during the 3rd quarter. Returns over the 1 -year period are modestly positive in both local currency and USD terms with the MSCI ACWI ex US returning 4.5% and 1.8% respectively. ■ Third quarter results for developed market international indices were positive in local currency terms and USD terms with the MSCI EAFE Index returning 2.4% and 1.4% respectively. Returns were dampened for US investors as continued strength in the USD pushed returns lower. 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. Concerns over a "no deal' Brexit and worries over a pending budget approval in Italy weighed on returns, while markets were encouraged by progress in trade negotiations between the US and the eurozone and signs of continued political stability in Japan. The MSCI EAFE Index returned 5.1% and 2.7% for the last twelve months in local currency and USD terms respectively. ■ Emerging markets underperformed relative to developed markets for the 3rd quarter, posting a flat return in local currency terms that was exacerbated by the rising USD. The MSCI Emerging Markets Index returned 0.0% and -1.1% in local currency and USD terms respectively. Returns in emerging markets were the hurt by the deterioration in trade negotiations between the US and China followed by several rounds of new tariffs enacted by both countries. Emerging market stocks were also negatively affected by 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. This was particularly problematic for Turkey, Argentina and South Africa during the 3rd quarter with Argentina having to expedite their request for an emergency bailout of $50 billion from the World Monetary Fund. In positive news, Mexico and the US made progress toward the renegotiation of NAFTA. One year returns for the MSCI Emerging Market Index were 2.7% in local currency terms and -0.8% in USD terms. The Market Environment International and Regional Market Index Performance (Country Count) As September 30, 2018 AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) Quarter Performance 0.7% 1 1.5% 1.3% 2.1 % 2.4% 0.8% ] 1.2% 2.3% ❑USD ❑Local Currency 4.4% -1.1% 0.0% 1.8% 1.8% -1.2% 56% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 1 -Year Performance ■USD ❑Local Currency AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EMEA (10) EM Asia (9) EM Latin Amer (5) -9. -10.0% 1.8% .s°ro 2.7% o 5.1o 2.7% o 5.1o -0.2 2.1 8.2% 10.7% -0.8% 2.7% -2.2% 5.6% 1.0% 1.9% 4.8% -5.0% 0.0% 5.0% 10.0% 15.0% l� Source: MSCI Global Index Monitor (Returns are Net) 6 Communication Services 5.4% 3.3% -2.4% Consumer Discretionary 11.1% -0.5% 3.3% Consumer Staples 11.3% -0.1% 2.5% Energy 6.0% 3.5% 24.6% Financials 19.8% 0.9% -4.0% Health Care 10.9% 5.6% 7.1% Industrials 14.3% 2.6% 4.2% Information Technology 6.2% 0.3% 7.4% Materials 8.1% 0.4% 5.1% Real Estate 3.5% -3.0% 1.0% Utilities Total 3.3% 1rr r',JW -0.6% 0.7% The Market Environment US Dollar International Index Attribution & Country Detail As of September 30, 2018 Country ML Weight Weight Communication Services 7.6% -3.0% -4.1% Consumer Discretionary 10.7% -3.2% -1.4% Consumer Staples 9.7% -0.6% 1.6% Energy 7.1% 4.1% 18.3% Financials 22.0% 1.7% -1.9% Health Care 8.3% 4.5% 7.6% Industrials 11.7% 2.8% 3.8% Information Technology 8.5% 1.3% 5.6% Materials 8.2% 0.4% 5.2% Real Estate 3.2% -3.5% -2.7% Utilities 3.0% -0.9% -1.2% -2.4% -9.7% Sweden N. The Market Environment US Dollar International Index Attribution & Country Detail As of September 30, 2018 Country ML Weight Weight Communication Services 14.8% -9.4% -6.0% Consumer Discretionary 11.3% -9.9% -13.2% Consumer Staples 6.7% -2.9% -1.9% Energy 6.3% 14.5% 26.0% Financials 23.3% 1.5% 0.4% Health Care 3.1% -7.2% 11.4% Industrials 5.3% 2.5% -4.3% Information Technology 15.9% 2.2% 2.3% Materials 7.8% 4.5% 8.6% Real Estate 2.9% -5.6% -15.1% Utilities Total 2.5% 100 .0% -1.9% -5.4% r The Market Environment US Dollar International Index Attribution & Country Detail As of September 30, 2018 Country ML Weight Weight Weyt umV Japan 24.6% 16.9% 3.1 10.2% United Kingdom 17.5% 12.0% -1.7% 2.9% France 11.2% 7.7% 2.8% 4.2% Germany 9.4% 6.5% -0.6% -5.4% Switzerland 8.3% 5.7% 7.3% 1.6% Australia 6.8% 4.7% -0.9% 4.4% Hong Kong 3.5% 2.4% -1.0% 2.9% Netherlands 3.3% 2.3% -1.5% -1.6% Spain 3.0% 2.0% -2.4% -9.7% Sweden 2.7% 1.9% 7.0% -3.3% Italy 2.3% 1.6% -4.5% -8.9% Denmark 1.7% 1.2% 2.3% -4.2% Singapore 1.3% 0.9% 2.2% 6.9% Finland 1.1% 0.7% 3.2% 10.3% Belgium 1.0% 0.7% -5.2% -11.8% Norway 0.8% 0.5% 6.7% 13.7% Israel 0.6% 0.4% 5.1% 14.9% Ireland 0.5% 0.4% -5.4% -6.1% Austria 0.2% 0.2% 0.2% -3.1% New Zealand 0.2% 0.2% 2.4% 4.4% Portugal 0.2% 0.1% -0.6% 1.7% Canada Total Developed China 6.7% 7.6% 0.8% -7.5% 1.9% -2.2% Korea 3.7% 0.7% 1.4% Taiwan 3.0% 6.5% 9.7% India 2.1% -2.3% 1.1% Brazil 1.5% 6.1% -14.0% South Africa 1.5% -7.4% -5.1% Russia 0.9% 6.2% 13.7% Mexico 0.8% 6.9% -4.4% Thailand 0.6% 13.6% 15.2% Malaysia 0.6% 3.8% 7.6% Indonesia 0.5% 2.0% -10.4% Poland 0.3% 10.6% -5.0% Chile 0.3% -2.0% -5.7% Philippines 0.2% 1.0% -15.6% Qatar 0.2% 12.8% 25.3% United Arab Emirates 0.2% 3.1% -6.9% Turkey 0.2% -20.5% -41.7% Colombia 0.1% -2.5% 10.0% Peru 0.1% -2.1% 12.2% Greece 0.1% -17.6% -14.8% Hungary 0.1% 4.7% -5.0% Czech Republic 0.1% 4.0% 12.8% Egypt 0.0% -6.8% -7.1% Pakistan Total Emerging Countries Total ACWIxIJS Countries 0.0% 24.7% 100 .0% 4.9% -1.1% r -20.6% r Source: Morningstar Direct, MSCI Global Index Monitor (Returns are Net in USD) As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represeTts backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. ■ Broad fixed income benchmarks had mixed results during the 3rd quarter. Interest rates rose across all maturities on the US Treasury Yield Curve. The Federal Open Market Committee (FOMC), decided to increase short-term interest rates by 25 basis points at their September meeting citing continued strength in the economy and stable inflation. This is the third rate hike of 2018. The current Fed Funds Rate target range sits at 2.00%-2.25%. The FOMC also changed the language used in its policy statement, removing the word "accommodative", which investors took as a signal that the Fed plans to continue its trend of monetary policy tightening. The yield curve continued to flatten, although very gradually, as short-term yields rose at a greater rate than long-term yields during the quarter. The difference in yields between the 2 - year and 10 -year Treasury now sits at just 0.24%. As the curve continues to flatten, it moves closer to becoming "inverted", which happens when short- term maturities have greater yields than long-term securities. Historically, an inverted yield curve has signaled a greater probability of a recession. The Fed is also continuing the reduction of 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 flat during the quarter, posting a 0.0% return. Over the 1 -year period the index has fallen -1.2%. ■ Within investment grade credit, lower quality corporate issues outperformed higher quality issues as credit spreads tightened steadily over the quarter. On an absolute basis, without negating the duration differences in the sub -indices, Baa rated credit was the best performing investment grade credit quality segment returning 1.4% for the quarter, while AAA was the worst performing, falling -0.3%. High yield debt outperformed relative to investment grade credit, returning 2.0%, as spreads tightened to a greater degree for these issues and the index benefitted from less sensitivity to rising interest rates due to its lower duration. Returns are negative for all investment grade quality segments when viewed over the 1 -year period while high yield continues to outperform with a return of 3.0%. ■ Of the Bloomberg Barclays US Aggregate Index's three broad sectors, US investment grade corporates were the best performing investment grade sector through the quarter, returning 1.0%, and the only sector to post a positive return for the period. Corporate credit outperformed as credit spreads tightened. Demand for these securities outweighed supply for the period despite considerable new issuance and a headwind from the sectors higher duration relative to other index sectors. Treasuries were the worst performing sector posting a -0.6% return. Over the 1 -year period, all three broad investment grade sectors posted losses with mortgages, investment grade credit and Treasuries falling -0.9%, -1.2% and -1.6% respectively. Source: Bloomberg The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of September 30, 2018 AAA (5.6) AA (5.9) A (7.2) Baa (7.4) U.S. High Yield (3.8) U.S. Treasury (6.0) U.S. Mortgage (5.3) U.S. Corporate IG (7.2) U.S. TIPS (5.4) Aggregate (6.0) Intermediate Agg (4.4) Global Agg x US (7.8) Multiverse (6.8) Quarter Performance -0.3% 0.3% 0.7% 1.4% 2.4% -0.6% -0.1 1.0% -0.8% 0.0% 0.1% 1.7% -0.8% -2.0% -1.0% 0.0% 1.0% 2.0% AAA (5.6) AA (5.9) A (7.2) Baa (7.4) U.S. High Yield (3.8) U.S. Treasury (6.0) U.S. Mortgage (5.3) U.S. Corporate IG (7.2) U.S. TIPS (5.4) Aggregate (6.0) Intermediate Agg (4.4) Global Agg x US (7.8) Multiverse (6.8) 1 -Year Performance -1.3% -0.6% -1.6% -0.8% 3.0% 1.6% -0.9% -1.2% 0.4% -1.2% -0.9% -1 s% -1.3% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 8 3.0% 4.0% Global fixed income indices continue to struggle relative to their domestic counterparts, underperforming during the 3rd quarter. These indices have lower yields and their relatively high duration 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 3rd 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 -1.7% and -1.5% for the quarter and 1 -year period respectively. As the global economy continues to recover, several international central banks have started to move toward less accommodative postures. Notably, the ECB, began 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. The Bank of England increased interest rates by 0.25% during the quarter citing improvement in their near-term economic outlook and the Bank of Japan has changed its policy to allow flexibility for future tightening in the future. 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 steadily during the end of the 3rd quarter, ending the period at 3.05%. 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, followed by a smooth decline during the 3rd quarter. This decline is equivalent to an interest rate decrease on corporate bonds, which produces an additional tailwind for corporate bond index returns. These credit spreads have tightened by about 20 basis points over the last 3 -months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate (three increases 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 the last twelve months. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Sep -17 Oct -17 Nov -17 Dec -17 Jan -18 Feb -18 Mar -18 Apr -18 May -18 Jun -18 Jul -18 Aug -18 Sep -18 The Market Environment Market Rate & Yield Curve Comparison As of September 30, 2018 1 -Year Trailing Market Rates 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 X12/31/2017 X3/31/2018 6/30/2018 —K� 9/30/2018 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 June 30, 2018 : $5190709434 Allocation Allocation Asset Allocation Summary Total Fund As of September 30. 2018 Asset Allocation By Segment as of September 30, 2018 : $5298939469 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 25,449,555 49.8 _ Domestic Equity 27,105,008 51.2 m International Equity 8,768,569 17.2 m International Equity 8,901,652 16.8 ■ Domestic Fixed Income 6,925,788 13.6 ■ Domestic Fixed Income 6,923,354 13.1 Global Fixed Income 1,774,837 3.5 ■ Global Fixed Income 1,784,902 3.4 ■ Other Fixed Income 2,017,094 3.9 ■ Other Fixed Income 2,173,788 4.1 Real Estate 5,257,174 10.3 7 Real Estate 5,347,528 10.1 Cash Equivalent 877,417 1.7 Cash Equivalent 657,237 1.2 10 Asset Allocation By Manager as of June 30, 2018 : $5190709434 Allocation Allocation Asset Allocation Summary Total Fund As of September 30. 2018 Asset Allocation By Manager as of September 30, 2018 : $5298939469 Market Value Allocation Market Value Allocation ■ Vanguard Total Stock Market (VITSX) 25,449,555 49.8 ■ Vanguard Total Stock Market (VITSX) 27,105,008 51.2 ■ RBC Global (Voyageur) 8,768,569 17.2 ■ RBC Global (Voyageur) 8,901,652 16.8 ■ Galliard Core Fixed Income 4,698,915 9.2 ■ Galliard Core Fixed Income 4,709,841 8.9 Intercontinental 3,229,259 6.3 Intercontinental 3,305,575 6.2 ■ American Core Realty Fund 2,052,496 4.0 ■ American Core Realty Fund 2,066,672 3.9 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,774,837 3.5 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,784,902 3.4 Crescent Direct Lending Fund 1,538,918 3.0 Crescent Direct Lending Fund 1,538,918 2.9 Galliard TIPS 1,218,462 2.4 Galliard TIPS 1,213,425 2.3 ■ Vanguard Inflation -Protected Secs (VAIPX) 997,905 2.0 ■ Vanguard Inflation -Protected Secs (VAIPX) 989,974 1.9 Receipt & Disbursement 846,678 1.7 ■ Crescent Direct Lending II Fund 634,870 1.2 ■ Crescent Direct Lending II Fund 478,176 0.9 Receipt & Disbursement 625,858 1.2 ■ Vanguard Short Term Bond Index (VSCSX) 16,663 0.0 Vanguard Short Term Bond Index (VSCSX) 16,774 0.0 Asset Allocation vs. Target Allocation Total Fund As of September 30, 2018 Asset Allocation vs. Target Allocation Total Domestic Equity 1.2% Total International Equity 1.8% Total Domestic Fixed Income -1.9% Total Global FI -1.6% Total Real Estate 0.2% Total Other Fixed Income -0.9% Receipt & Disbursement 1.2% -3.5% -2.8% -2.1 % -1.4% -0.7% 0.0% 0.7% 1.4% 2.1% 2.8% 3.5% qR Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation (%) Target (%) Total Domestic Equity 27,105,008 51.2 50.0 Total International Equity 8,901,652 16.8 15.0 Total Domestic Fixed Income 6,930,015 13.1 15.0 Total Global FI 1,784,902 3.4 5.0 Total Real Estate 5,372,247 10.2 10.0 Total Other Fixed Income 2,173,788 4.1 5.0 Receipt & Disbursement 625,858 1.2 0.0 Total Fund 62,893,469 100.0 100.0 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 Sep -2018 625,858 1.18 52,893,469 100.00 Jun -2018 36,006,659 68.07 27,105,008 51.24 27,105,008 51.24 8,901,652 16.83 8,901,652 16.83 10,888,705 20.59 6,930,015 13.10 4,709,841 8.90 1,213,425 2.29 16,774 0.03 989,974 1.87 1,784,902 3.37 1,784,902 3.37 2,173,788 4.11 1,538,918 2.91 634,870 1.20 5,372,247 10.16 2,066,672 3.91 3,305,575 6.25 625,858 1.18 52,893,469 100.00 Jun -2018 34,218,124 67.00 25,449,555 49.83 25,449,555 49.83 8,768,569 17.17 8,768,569 17.17 10,723,877 21.00 6,931,946 13.57 4,698,915 9.20 1,218,462 2.39 16,663 0.03 997,905 1.95 1,774,837 3.48 1,774,837 3.48 2,017,094 3.95 1,538,918 3.01 478,176 0.94 5,281,755 10.34 2,052,496 4.02 3,229,259 6.32 846,678 1.66 51,070,434 100.00 13 Mar -2018 33,146,350 66.40 24,492,747 49.06 24,492,747 49.06 8,653,602 17.33 8,653,602 17.33 10,699,049 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 1,975,338 3.96 1,615,799 3.24 359,539 0.72 5,183,738 10.38 2,040,417 4.09 3,143,321 6.30 893,528 1.79 49,922,665 100.00 Asset Allocation Asset Allocation History By Portfolio As of September 30, 2018 Dec -2017 35,555,962 71.01 26,777,576 53.4 26,777,576 53.4 8,778,386 17.5 8,778,386 17.5 8,952,842 17.8 7,505,587 14.9 4,746,117 9.4 1,235,959 2.4 117,161 0.2 1,406,350 2.81 Sep -2017 8 8 3 3 8 9 8 7 3 32,193,323 67.51 25,181,638 52.81 25,181,638 52.81 7,011,686 14.70 7,011,686 14.7C 9,893,096 20.75 8,480,416 17.78 4,744,096 9.9E 1,229,296 2.5E 1,117,229 2.34 1,389,794 2.91 0.00 - 0.00 1,447,255 2.89 1,447,255 2.89 - 0.00 5,088,367 10.16 2,025,745 4.05 3,062,622 6.12 472,631 0.94 50,069,802 100.00 0.00 - 0.00 1,412,680 2.96 1,412,680 2.96 - 0.00 5,011,230 10.51 2,021,097 4.24 2,990,133 6.27 587,828 1.23 47,685,478 100.00 Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 Historical Asset Allocation by Segment Total Fund October 1, 2007 To September 30, 2018 0.0 L' _ 9/07 3/08 9/08 3/09 Domestic Equity Other Fixed Income 9/09 3/10 9/10 3/11 International Equity Real Estate 9/11 3/12 9/12 Domestic Fixed Income Cash Equivalent 14 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 Global Fixed Income 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of September 30, 2018 76.0 68.0 60.0 52.0 44.0 36.0 c 0 28.0 Q 20.0 O 12.0 O O 4.0 p O O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 51.24 (24) 16.83 (45) 13.10 (96) 3.37 (75) 4.11 (79) 10.16 (21) 1.18 (55) 5th Percentile 61.28 27.30 46.73 8.95 36.76 13.89 6.75 1 st Quartile 50.75 21.62 34.37 4.92 19.49 9.84 2.32 Median 43.70 15.24 27.94 4.30 9.82 7.52 1.33 3rd Quartile 36.50 12.95 21.29 3.23 4.45 4.91 0.62 95th Percentile 21.08 8.02 13.91 0.25 1.29 2.34 0.05 l� 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30, 2018 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 07/01/2018 Transfers Fees Expenses Deprec. 09/30/2018 Total Equity 34,218,124 -107,926 -1,553 169,041 1,728,973 36,006,659 Total Domestic Equity 25,449,555 -150,000 - 128,900 1,676,552 27,105,008 Vanguard Total Stock Market (VITSX) 25,449,555 -150,000 - 128,900 1,676,552 27,105,008 Total International Equity 8,768,569 42,074 -1,553 40,141 52,420 8,901,652 RBC Global (Voyageur) 8,768,569 42,074 - -1,553 40,141 52,420 8,901,652 Total Fixed Income 10,723,877 136,615 -3,394 -151 29,739 2,019 10,888,705 Total Domestic Fixed Income 6,931,946 - -3,394 -151 9,660 -8,046 6,930,015 Galliard Core Fixed Income 4,698,915 -3,394 - - 14,320 4,709,841 Galliard TIPS 1,218,462 - -151 1,725 -6,611 1,213,425 Vanguard Short Term Bond Index (VSCSX) 16,663 - 111 - 16,774 Vanguard Inflation -Protected Secs (VAIPX) 997,905 - 7,824 -15,755 989,974 Total Global FI 1,774,837 -20,079 20,079 10,065 1,784,902 PIMCO Diversified Income Fund Instl (PDIIX) 1,774,837 -20,079 20,079 10,065 1,784,902 Total Other Fixed Income 2,017,094 156,694 - - 2,173,788 Crescent Direct Lending Fund 1,538,918 - 1,538,918 Crescent Direct Lending II Fund 478,176 156,694 - - - 634,870 Total Real Estate 5,281,755 -24,580 -10,649 64,786 60,936 5,372,247 American Core Realty Fund 2,052,496 -24,580 -5,699 30,418 14,038 2,066,672 Intercontinental 3,229,259 - - - -4,950 - 34,368 46,898 3,305,575 Receipt & Disbursement 846,678 -4,109 577,499 -760,179 - -37,230 3,198 - 625,858 Total Fund Portfolio 51,070,434 - 577,499 -760,179 -14,043 -38,934 266,764 1,791,928 52,893,469 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2017 To September 30, 2018 Financial Reconciliation Fiscal Year to Date 17 3 Market Value Net Contributions Distributions Management Other Income Apprec./ Market Value 10/01/2017 Transfers Fees Expenses Deprec. 09/30/2018 Total Equity 32,193,323 -872,936 -34,991 -6,703 734,427 3,992,638 36,006,669 Total Domestic Equity 26,181,638 -2,360,000 - - 470,731 3,802,639 27,106,008 Vanguard Total Stock Market (VITSX) 25,181,638 -2,350,000 - - 470,731 3,802,639 27,105,008 Total International Equity 7,011,686 1,477,066 -34,991 -6,703 263,696 189,899 8,901,662 RBC Global (Voyageur) 7,011,686 1,477,065 - -34,991 -5,703 263,696 189,899 8,901,652 Total Fixed Income 9,893,096 904,060 62,688 -18,667 -76,766 86,467 48,716 10,888,706 Total Domestic Fixed Income 8,480,416 -1,619,406 - -14,236 -606 49,972 -66,126 6,930,016 Galliard Core Fixed Income 4,744,096 594 -14,236 - - -20,614 4,709,841 Galliard TIPS 1,229,296 -20,000 - -605 5,028 -294 1,213,425 Vanguard Short Term Bond Index (VSCSX) 1,117,229 -1,100,000 - 6,973 -7,428 16,774 Vanguard Inflation -Protected Secs (VAIPX) 1,389,794 -400,000 37,971 -37,791 989,974 Total Global FI - 1,764,604 36,496 -16,098 1,784,902 PIMCO Diversified Income Fund Instl (PDIIX) - 1,764,504 - - - 35,496 -15,098 1,784,902 Total Other Fixed Income 1,412,680 668,961 62,688 -4,321 -76,160 - 129,940 2,173,788 Crescent Direct Lending Fund 1,412,680 39,898 22,540 -4,321 -68,418 136,539 1,538,918 Crescent Direct Lending II Fund - 619,053 30,148 - -7,732 - -6,599 634,870 Total Real Estate 6,011,230 -97,606 - -46,871 - 243,636 261,969 6,372,247 American Core Realty Fund 2,021,097 -97,606 -22,572 120,632 45,121 2,066,672 Intercontinental 2,990,133 - - -24,299 - 122,903 216,838 3,305,575 Receipt & Disbursement 687,828 66,491 3,040,447 -2,966,131 - -122,762 9,974 - 626,868 Total Fund Portfolio 47,686,478 - 3,093,136 -2,966,131 -100,419 -206,211 1,073,403 4,303,213 62,893,469 17 3 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of September 30, 2018 QTR FYTD 1 YR 3 YR 6 YR Inception Inception Date Total Fund (Net) 4.01 11.02 11.02 12.08 9.68 6.24 11/01/2000 Total Fund Policy 3.96 9.81 9.81 11.11 8.96 5.87 Total Fund (New Mgrs) (Net) 4.01 11.02 11.02 12.08 9.58 6.47 10/01/2007 Total Fund Policy 3.96 9.81 9.81 11.11 8.96 6.90 Total Fund (Gross) 4.04 (12) 11.24 (7) 11.24 (7) 12.39 (4) 9.90 (2) 6.86 (13) 11/01/2000 Total Fund Policy 3.96 (15) 9.81 (18) 9.81 (18) 11.11 (17) 8.96 (11) 5.87 ku., All Public Plans -Total Fund Median 3.12 8.15 8.15 10.00 7.84 6.10 Total Fund (New Mgrs) (Gross) 4.04 (12) 11.24 (7) 11.24 (7) 12.39 (4) 9.90 (2) 6.97 (7) 10/01/2007 Total Fund Policy 3.96 (15) 9.81 (18) 9.81 (18) 11.11 (17) 8.96 (11) 6.90 (9) All Public Plans -Total Fund Median 3.12 8.15 8.15 10.00 7.84 6.08 Total Equity �66 14.87 1 14.87 16.17 7.26 1 01/01/2001 Total Equity Policy 5.81 14.18 14.18 15.41 11.49 6.03 Total Domestic Equity 7.12 (52) 17.88 (41) 17.88 (41) 17.24 (31) 13.50 (53) 7.38 (35) 11/01/2000 Total Domestic Equity Policy 7.12 (51) 17.58 (46) 17.58 (46) 17.07 (35) 13.46 (54) 6.12 (91) IM U.S. Large Cap Core Equity (SA+CF) Median 7.13 17.25 17.25 16.23 13.55 7.01 Total International Equity 1.05 (43) 6.25 (7) 6.25 (7) 13.02 (10) 8.73 (7) 6.81 (44) 11/01/2000 MSCI EAFE Index 1.42 (32) 3.25 (29) 3.25 (29) 9.77 (45) 4.90 (50) 4.66 (98) IM International Large Cap Value Equity (SA+CF) Median 0.89 1.51 1.51 9.45 4.85 6.61 Total Fixed Income 0.29 UP 1.10 11� 1.10 2.7. 4.78 11/01/2000 Total Fixed Policy 0.11 -0.93 -0.93 0.95 1.70 4.38 Total Domestic Fixed Income 0.02 (98) -0.21 (35) -0.21 (35) 1.52 (34) 1.90 (53) 4.46 (53) 11/01/2000 Total Domestic Fixed Policy 0.11 (96) -0.93 (96) -0.93 (96) 0.95 (92) 1.70 (76) 4.38 (68) IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.38 -0.38 1.37 1.91 4.47 Total Global FI 1.71 (3) N/A N/A N/A N/A 0.78 (9) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) 0.98 (9) 0.39 (19) 0.39 (19) 4.14 (12) 4.01 (4) 0.53 (13) IM Global Fixed Income (MF) Median -0.39 -1.19 -1.19 2.36 1.39 -2.88 Total Real Estate _ 2.39 (40) 10.26 (34) 10.26 (34) 10.67 (36) 11.88 (40) 6.20 (19) 10/01/2007 NCREIF Fund Index-ODCE (VVV) 2.09 (60) 8.68 (67) 8.68 (67) 8.80 (70) 10.72 (64) 5.36 11 IM U.S. Open End Private Real Estate (SA+CF) Median 2.19 9.63 9.63 9.72 11.25 5.40 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 September 30, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 7.09 (22) 17.62 (19) 17.62 (19) 17.07 (11) 13.44 (12) 14.52 (17) 03/01/2013 Vanguard Total Stock Market Index Hybrid 7.08 (23) 17.62 (19) 17.62 (19) 17.07 (11) 13.45 (11) 14.54 (16) IM U.S. Multi -Cap Core Equity (MF) Median 5.83 14.51 14.51 14.53 11.56 12.94 RBC Global (Voyageur) 1.05 (43) 6.25 (7) 6.25 (7) 13.02 (10) 8.73 (7) 4.79 (13) 11/01/2007 MSCI EAFE Index 1.42 (32) 3.25 (29) 3.25 (29) 9.77 (45) 4.90 (50) 1.60 (72) IM International Large Cap Value Equity (SA+CF) Median 0.89 1.51 1.51 9.45 4.85 2.62 Galliard Core Fixed Income 0.30 (65) -0.43 (57) -0.43 (57) 1.44 (38) 2.10 (33) 3.55 (69) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 0.11 (96) -0.93 (96) -0.93 (96) 0.95 (92) 1.70 (76) 3.39 IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.38 -0.38 1.37 1.91 3.74 Galliard TIPS -0.40 (19) 0.39 (76) 0.39 (76) 1.61 (93) 1.01 (81) 2.95 (98) 10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year -0.42 (23) 0.33 (91) 0.33 (91) 1.65 (91) 0.94 (92) 3.00 (97) IM U.S. TIPS (SA+CF) Median -0.74 0.43 0.43 2.11 1.38 3.66 Vanguard Short Term Bond Index (VSCSX) 0.67 (15) -0.14 (41) -0.14 (41) 1.59 (25) N/A 1.65 (21) 01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index 0.71 (8) 0.11 (28) 0.11 (28) 1.74 (20) 1.93 (8) 1.82 (13) IM U.S. Intermediate Investment Grade (MF) Median 0.34 -0.38 -0.38 1.06 1.24 1.06 PIMCO Diversified Income Fund Instl (PDIIX) 1.71 (3) N/A N/A N/A N/A 0.78 (9) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) 0.98 (9) 0.39 (19) 0.39 (19) 4.14 (12) 4.01 (4) 0.53 (13) IM Global Fixed Income (MF) Median -0.39 -1.19 -1.19 2.36 1.39 -2.88 American Core Realty Fund 2.19 (50) 8.50 (70) 8.50 (70) 8.35 (80) 10.28 (80) 5.08 (78) 10/01/2007 American Core Realty Policy 2.09 (61) 8.82 (65) 8.82 (65) 9.08 (60) 10.84 (63) 7.23 (1) IM U.S. Open End Private Real Estate (SA+CF) Median 2.19 9.63 9.63 9.72 11.25 5.40 Intercontinental 2.52 (25) 11.40 (10) 11.40 (10) 12.17 (24) 12.91 (30) 13.97 (33) 10/01/2010 NCREIF Fund Index-ODCE 2.09 (60) 8.68 (67) 8.68 (67) 8.80 (70) 10.72 (64) 12.04 (81) IM U.S. Open End Private Real Estate (SA+CF) Median 2.19 9.63 9.63 9.72 11.25 12.73 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 20 Comparative Performance - IRR As of September 30, 2018 Comparative Performance - IRR QTR 1 YR 3 YR 6 YR Inception Inception Date Crescent Direct Lending Fund 0.00 4.21 7.48 N/A 6.99 10/14/2014 Crescent Direct Lending II Fund 0.00 N/A N/A N/A -2.92 03/13/2018 20 Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2018 Comparative Performance Fiscal Year Returns FYTD Oct -2017 To Sep -2018 Oct -2016 To Sep -2017 Oct -2015 To Sep -2016 Oct -2014 To Sep -2015 Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Oct -2008 To Sep -2009 Total Fund (Net) 11.02 (7) 11.02 (7) 14.10 (16) 11.15 (10) 0.33 (30) 11.85 (14) 15.72 (7) 18.95 (27) -1.17 (82) 10.67 (30) 0.70 (66) Total Fund Policy 9.81 (18) 9.81 (18) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (10) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 8.15 (72) 8.15 12.20 9.66 -0.50 10.17 12.49 17.99 0.29 9.85 1.75 Total Fund (New Mgrs) (Net) 11.02 (7) 11.02 (7) 14.10 (15) 11.15 (10) 0.33 (30) 11.85 (14) 15.72 (7) 18.95 (27) -1.17 (82) 10.66 (30) 0.68 (66) Total Fund Policy 9.81 (18) 9.81 (18) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (10) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 8.15 -0.45 8.15 12.20 9.66 -0.50 10.17 12.49 17.99 0.29 9.85 1.75 Total Fund (Gross) 11.24 (7) 11.24 (7) 14.45 (11) 11.51 (7) 0.63 (26) 12.21 (10) 16.33 (6) 19.81 (16) -0.45 (68) 11.40 (17) 1.43 (64) Total Fund Policy 9.81 (18) 9.81 (18) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (10) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 8.15 8.15 12.20 9.66 -0.50 10.17 12.49 17.99 0.29 9.85 1.75 Total Fund (New Mgrs) (Gross) 11.24 (7) 11.24 (7) 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (10) 16.33 (5) 19.81 (15) -0.45 (68) 11.40 (17) 1.39 (54) Total Fund Policy 9.81 (18) 9.81 (18) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (23) 15.00 (12) 19.61 (18) 2.51 (10) 9.13 (72) 0.33 (71) All Public Plans -Total Fund Median 8.15 8.15 12.20 9.66 -0.50 10.17 12.49 17.99 0.29 9.85 1.75 Total Equity 14.8714.87 IF 19.50 WINNUFM -1.620 16.46 IV 23.09IM27.08 -4.58 * 13.61 Total Equity Policy 14.18 14.18 19.00 13.13 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 Total Domestic Equity 17.88 (41) 17.88 (41) 18.64 (51) 15.21 (25) -0.59 (62) 17.58 (69) 21.85 (34) 27.76 (61) -3.30 (90) 14.19 (9) -4.29 (37) Total Domestic Equity Policy 17.58 (46) 17.58 (46) 18.71 (50) 14.96 (29) -0.49 (61) 17.76 (67) 21.60 (37) 30.20 (44) 0.55 (58) 10.96 (32) -6.91 (64) IM U.S. Large Cap Core Equity (SA+CF) Median 17.25 17.25 18.68 13.30 0.05 19.21 20.71 29.63 1.16 9.53 -5.79 Total International Equity 6.25 (7) 6.25 (7) 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) MSCI EAFE Index 3.25 (29) 3.25 (29) 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) IM International Large Cap Value Equity (SA+CF) Median 1.51 1.51 20.70 8.34 -9.40 5.75 22.94 15.36 -8.68 4.99 6.25 Total Fixed Income 1 1.10 3.31 4.93 1.40 3.�-0.59 ' 6.34 "'W 4.67 0 9.27 10.53 Total Fixed Policy -0.93 -0.93 0.25 3.57 2.95 2.74 -0.71 4.22 7.52 9.69 Total Domestic Fixed Income -0.21 (35) -0.21 (35) 0.61 (60) 4.21 (30) 2.31 (73) 2.61 (64) -1.30 (95) 5.88 (43) 4.67 (13) 9.27 (22) 10.53 (70) Total Domestic Fixed Policy -0.93 (96) -0.93 (96) 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) IM U.S. Intermediate Duration (SA+CF) Median -0.38 -0.38 0.69 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 11.51 Total Global Fixed Income N/A N/A N/A 0.81 (100) -7.63 (93) 6.31 (12) 3.53 (2) N/A N/A N/A N/A Total Global Fixed Income Policy -1.54 (56) -1.54 (56) -2.69 (94) 9.71 (20) -3.83 (50) -0.07 (96) -4.60 (82) N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.19 -1.19 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 13.54 Total Global FI N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged) 0.39 (19) 0.39 (19) 3.04 (27) 9.19 (25) 0.86 (18) 6.83 (9) 1.46 (8) 11.61 (5) 1.69 (53) 11.05 (28) 15.99 (27) IM Global Fixed Income (MF) Median -1.19 -1.19 1.02 7.42 -3.85 3.37 -1.81 7.17 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 September 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 -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 FYTD To To To To To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Total Real Estate 10.25 (34) 10.25 (34) 10.01 (19) 11.44 (49) 14.27 (67) 13.47 (38) 16.42 (19) 12.81 (64) 15.82 (72) 2.71 (77) -32.42 (32) NCREIF Fund Index-ODCE 8.68 (67) 8.68 (67) 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 9.63 9.63 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 September 30, 2018 Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 FYTD To To To To To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 N/A N/A N/A N/A N/A N/A N/A 33.21 (8) -1.17 (76) 11.93 (44) 0.53 (23) 26.30 (37) 26.30 (37) 21.94 (36) 13.76 (23) 3.17 (55) 19.15 (40) 19.27 (63) 29.19 (38) 3.78 (30) 12.65 (35) -1.85 (38) 24.42 24.42 20.79 11.62 3.60 18.13 20.24 27.63 1.38 11.27 -2.98 6.25 (7) 6.25 (7) 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) 3.25 (29) 3.25 (29) 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) 1.51 1.51 20.70 8.34 -9.40 5.75 22.94 15.36 -8.68 4.99 6.25 17.62 (19) 17.62 (19) 18.64 (38) 15.00 (16) -0.59 (34) 17.77 (31) N/A N/A N/A N/A N/A 17.62 (19) 17.62 (19) 18.64 (37) 14.99 (16) -0.55 (33) 17.77 (31) 21.60 (59) 30.28 (16) 0.71 (26) 11.16 (25) -6.03 (53) 14.51 14.51 17.51 11.85 -1.88 16.33 22.79 26.86 -1.52 9.17 -5.78 -0.43 (57) -0.43 (57) 0.44 (72) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) 5.82 (45) 4.16 (27) 9.63 (17) 12.08 (38) -0.93 (96) -0.93 (96) 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) -0.38 -0.38 0.69 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 11.51 0.39 0.39 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 0.33 0.33 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 N/A N/A N/A 0.83 -7.63 6.33 3.54 N/A N/A N/A N/A -1.54 -1.54 -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 N/A 0.39 (19) 0.39 (19) 3.04 (27) 9.19 (25) 0.86 (18) 6.83 (9) 1.46 (8) 11.61 (5) 1.69 (53) 11.05 (28) 15.99 (27) -1.19 -1.19 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 13.54 -0.14 (41) -0.14 (41) 1.55 (27) 3.40 (20) N/A N/A N/A N/A N/A N/A N/A 0.11 (28) 0.11 (28) 1.82 (20) 3.33 (21) 1.98 (8) 2.46 (25) 1.47 (16) 6.29 (29) 1.83 (58) 8.25 (37) 16.02 (2) -0.38 -0.38 0.85 2.56 1.21 1.64 -0.52 4.93 1.99 7.52 10.46 8.50 (70) 8.50 (70) 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) 8.82 (65) 8.82 (65) 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) 9.63 9.63 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 -35.32 11.40 (10) 11.40 (10) 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 8.68 (67) 8.68 (67) 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) 9.63 9.63 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 0 12.00 0 0 0 • 10.00 0 0 0 • 8.00 c v K 6.00 4.00 - • 0 2.00- 0.00 .00-0.00 - -2.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 4.04 (12) 11.24 (7) 11.24 (7) 12.83 (4) 12.39 (4) 9.33 (3) 9.90 (2) • Total Fund Policy 3.96 (15) 9.81 (18) 9.81 (18) 11.34 (24) 11.11 (17) 8.37 (13) 8.96 (11) Median 3.12 8.15 8.15 10.28 10.00 7.23 7.84 Comparative Performance Performance Review Total Fund Portfolio As of September 30. 2018 20.00 17.00 0 0 14.00 0 11.00 0 8.00 c v 5.00 K 2.00 -1.00 -4.00 ■ -7.00 -10.00 Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • Total Fund Portfolio 11.24 (7) 14.45 (11) 11.51 (7) 0.63 (25) 12.21 (10) 16.33 (5) • Total Fund Policy 9.81 (18) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (23) 15.00 (12) Median 8.15 12.20 9.66 -0.50 10.17 12.49 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Total Fund Portfolio 2.43 (9) -0.16 (41) 4.54 (7) 3.82 (22) 2.79 (64) 4.46 (47) Total Fund Policy 2.07 (20) -0.57 (72) 4.07 (26) 3.48 (46) 2.80 (63) 4.36 (53) All Public Plans -Total Fund Median 1.42 -0.28 3.74 3.44 2.97 4.39 24 3 Yr Rolling Under/Over Performance - 5 Years 20.0 Over Performance 0 16.0 0 O 0 O O LL 12.00 c O 00 LL 8.0 O 4.0 4.0 8.0 12.0 Total Fund Policy (% ) eOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 13.26 12.48 11.70 «' 10.92 O v K 10.14 Performance Review Total Fund Portfolio As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 12.39 2.94 c 0.0 0 e 0 8 8 8 8 e e 8 8 8 8 8 e 0 0 0 0 0 K 8.96 4.57 Median 10.00 2.92 w 25.0 4.72 Historical Statistics - 3 Years c U a 50.0 Tracking Up Down E 75.0 Downside Error Market Market Alpha U! Ratio Beta Risk Capture Capture Under 100.0 Total Fund Portfolio 0.78 109.61 28.63 1 Performance 3.73 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 16.0 20.0 3.37 1.00 0.33 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count x 9.36 2.90 2.91 2.92 2.93 2.94 2.95 Risk (Standard Deviation %) Return Standard Deviation O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scattergram - 5 Years 10.88 10.20 9.52 «' 8.84 O K 8.16 7.48 4.5 4.6 20(100%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) x 1 4.7 4.8 4.9 5.0 5.1 Risk (Standard Deviation %) Return Standard Deviation • Total Fund Portfolio 12.39 2.94 O Total Fund Portfolio 9.90 4.95 O Total Fund Policy 11.11 2.91 O Total Fund Policy 8.96 4.57 Median 10.00 2.92 Median 7.84 4.72 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.78 109.61 28.63 1.45 1.51 3.73 0.98 0.09 Total Fund Policy 0.00 100.00 100.00 0.00 3.37 1.00 0.33 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.98 109.03 100.67 0.34 0.91 1.87 1.06 2.14 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 2.11 25 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 26.00 23.00 20.00 17.00 14.00 Z; 11.00 K 8.00 5.00 2.00 -1.00 -4.00 00 00 0 k I 0 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Vanguard Total Stock Market (VITSX) 7.09 (22) 7.62 (19) 17.62 (19) 8.13 (25) 17.07 (11) 2.38 (11) 13.44 (12) • Vanguard Total Stock Market Index Hybrid 7.08 (23) 7.62 (19) 17.62 (19) 8.13 (25) 17.07 (11) 2.39 (10) 13.45 (11) Median 5.83 4.51 14.51 6.10 14.53 0.39 11.56 Comparative Performance Performance Review Vanguard Total Stock Market (VITSX) As of September 30, 2018 44.00 36.00 28.00 20.00 c v 12.00 K 4.00 -4.00 -12.00 -20.00 1 Qtr 1 Qtr 1 Qtr 1 Qtr __j Oct- Oct- Oct- Oct- Oct- Oct - 2017 2016 2015 2014 2013 2012 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - 2018 2017 2016 2015 2014 2013 • Vanguard Total Stock Market (VITSX) 7.62 (19)3.64 (38)5.00 (16)).59 (34)7.77 (31) N/A • Vanguard Total Stock Market Index Hybrid 7.62 (19)3.64 (37)1.99 (16)).55 (33)7.77 (31)1.60 (59) Median 1.51 7.51 1.85 1.88 3.33 2.79 O 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Vanguard Total Stock Market (VITSX) 3.91 (19) -0.60 (49) 6.34 (43) 4.54 (44) 3.03 (42) 5.79 (39) Vanguard Total Stock Market Index Hybrid 3.91 (19) -0.60 (49) 6.34 (42) 4.55 (43) 3.04 (42) 5.79 (39) IM U.S. Multi -Cap Core Equity (MF) Median 2.64 -0.61 6.13 4.36 2.90 5.47 O 3 Yr Rolling Under/Over Performance - 5 Years rn 21.0 Over > Performance 18.0 15.0 U 0 dJ 12.0 700 � 9.0 o Under A � Performance 6.0 6.0 9.0 12.0 15.0 18.0 21.0 Vanguard Total Stock Market Index Hybrid (%) • Under Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 17.64 (f� 16.80 `-"-' 15.96 «' 15.12 v K 14.28 13.44 1 1 1 9.16 9.20 9.24 9.28 9.32 9.36 9.40 Risk (Standard Deviation %) Return Standard Deviation Performance Review Vanguard Total Stock Market (VITSX) As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O Vanguard Total Stock Market Index Hybrid 17.07 9.17 • Vanguard Total Stock Market Index Hybrid 13.45 9.56 Median 14.53 9.34 Median 11.56 9.85 Historical Statistics - 3 Years Market Market O O O O O O p 0 0 Capture Capture v 25.0 0 0 0 0 0 0O -0.01 0.01 1.69 1.00 4.43 Vanguard Total Stock Market Index Hybrid 0 N/A 1.69 1.00 4.43 � `w 50.0 - a r K 75.0 -60 moo 100.0 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 Total 5-25 25 -Median Median -75 75-95 Period Count Count Count Count lb Vanguard Total Stock Market (VITSX) 11 • Vanguard Total Stock Market Index Hybrid 20 Peer Group Scattergram - 5 Years 14.26 13.64 CD 13.02 «' 12.40 v K 11.78 10 (91 %� 1 (9%) 0 (0%) 0 (0%) 10 (50%� 10(50%) 0 (0%) 0 (0%) 11.16 1 1 1 9.48 9.54 9.60 9.66 9.72 9.78 9.84 9.90 9.96 Risk (Standard Deviation %) Return Standard Deviation • Vanguard Total Stock Market (VITSX) 17.07 9.17 • Vanguard Total Stock Market (VITSX) 13.44 9.56 O Vanguard Total Stock Market Index Hybrid 17.07 9.17 • Vanguard Total Stock Market Index Hybrid 13.45 9.56 Median 14.53 9.34 Median 11.56 9.85 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 99.99 -0.01 0.01 1.69 1.00 4.43 Vanguard Total Stock Market Index Hybrid .x.00 N/A 1.69 1.00 4.43 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 99.96 100.01 -0.02 -0.28 1.32 1.00 5.16 Vanguard Total Stock Market Index Hybrid 100.00 100.00 5.15 27 3 Performance Review RBC Global (Voyageur) As of September 30. 2018 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) 20.00 44.00 17.00 36.00 14.00 - 0 28.00 0 11.00 0 20.00 O 8.00 12.00 • v v • 5.00 4.00 - S j 2.00 -4.00 • -1.00 -12.00 ■ -4.00 L-20.00 -7.00 -28.00 Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • RBC Global (Voyageur) 1.05 (43) 6.25 (7) 6.25 (7) 14.18 (10) 13.02 (10) 8.40 (10) 8.73 (7) O RBC Global (Voyageur) 6.25 (7) 22.69 (35) 10.74 (28) -4.36 (19) 10.08 (8) 27.54 (18) • MSCI EAFE Index 1.42 (32) 3.25 (29) 3.25 (29) 11.15 (40) 9.77 (45) 4.95 (46) 4.90 (50) O MSCI EAFE Index 3.25 (29) 19.65 (55) 7.06 (60) -8.27 (42) 4.70 (63) 24.29 (41) Median 0.89 1.51 1.51 10.72 9.45 4.85 4.85 Median 1.51 20.70 8.34 -9.40 5.75 22.94 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 RBC Global (Voyageur) 1.35 (3) -1.41 (58) 5.22 (28) 6.53 (31) 6.27 (44) 7.47 (62) MSCI EAFE Index -0.97 (17) -1.41 (58) 4.27 (50) 5.47 (57) 6.37 (41) 7.39 (64) IM International Large Cap Value Equity (SA+CF) Median -2.21 -1.26 4.22 5.65 6.01 7.73 28 3 3 Yr Rolling Under/Over Performance - 5 Years 32.0 Over Performance 24.0 w o 0 0 0 16.0 0 0 8.0 o �O 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 14.00 C 12.00 E 10.00 8.00 10.40 10.60 10.80 11.00 11.20 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 13.02 11.34 O RBC Global (Voyageur) 8.73 y 0.0 0 0 0 0 0 0 0 0 0 00 4.90 O Median 9.45 10.70 Median 0 O O O v 25.0 O O O Down O Information Sharpe Downside O OO O O O Market Alpha Ratio O Beta 50.0 O O O O O O O O a 109.52 89.73 3.20 0.71 1.07 O O O O MSCI EAFE Index 0.00 O E 75.0 1.00 6.11 Historical Statistics - 5 Years r Tracking Up Down Information Sharpe Under 100.0 Error Market Market Alpha Ratio Ratio Beta 1 Performance Capture 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 24.0 32.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count ❑1 11.40 Standard Deviation O RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scattergram - 5 Years 10.00 8.00 E 6.00 n 4.00 18 (90%) 2 (10%) 0 (0%) 0 (0%) 0 (0%) 8 (40%) 12 (60%) 0 (0%) L 11.60 10.58 10.81 11.04 11.27 11.50 11.73 11.96 Risk (Standard Deviation %) Return Standard Deviation 12.19 O RBC Global (Voyageur) 13.02 11.34 O RBC Global (Voyageur) 8.73 11.89 O MSCI EAFE Index 9.77 10.63 O MSCI EAFE Index 4.90 10.97 Median 9.45 10.70 Median 4.85 11.08 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.29 109.52 89.73 3.20 0.71 1.07 0.99 6.96 MSCI EAFE Index 0.00 100.00 - 1.00 6.11 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.61 113.79 90.62 3.78 0.80 0.72 1.00 7.20 MSCI EAFE Index 100.00 100.00 0.00 1 1.00 ORA Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 4.52 3.85 3.18 2.51 1.84 0 r 1.17 0 0.50 0 0 0 -0.17 0 0 -0.84 so 0 8.00 6.00 4.00 0 I ` r 2.00 K 0.00 -2.00 -4.00 Performance Review Galliard Core Fixed Inc As of September 30. 2018 hk 00 0 = 1i W Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • Galliard Core Fixed Inc 0.30 (65) -0.43 (57) -0.43 (57) 0.00 (66) 1.44 (38) 1.83 (34) 2.10 (33) • Galliard Core Fixed Inc -0.43 (57) 0.44 (72) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) • Barclays Int Agg Index 0.11 (96) -0.93 (96) -0.93 (96) -0.34 (94) 0.95 (92) 1.44 (82) 1.70 (76) • Barclays Int Agg Index -0.93 (96) 0.25 (87) 3.57 (73) 2.95 (32) 2.74 (58) -0.71 (77) Median 0.37 -0.38 -0.38 0.13 1.37 1.70 1.91 Median -0.38 0.69 3.90 2.70 2.88 -0.27 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Galliard Core Fixed Inc 0.05 (73) -0.90 (53) 0.11 (30) 0.79 (33) 1.03 (43) 0.78 (61) Barclays Int Agg Index 0.09 (61) -1.05 (82) -0.07 (77) 0.72 (48) 0.92 (73) 0.68 (81) IM U.S. Intermediate Duration (SA+CF) Median 0.12 -0.90 0.01 0.72 1.01 0.81 W 3 Yr Rolling Under/Over Performance - 5 Years s.o Over Performance 4.0 � o x 3.0 � LL O L 0 Oo/ ti 2.0 0 0 ° 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 1.60 is 1.40 C 1.20 v 1.00 - • 0.80 1.86 1.88 1.90 1.92 1.94 1.96 Risk (Standard Deviation %) Return Standard Deviation Performance Review Galliard Core Fixed Inc As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 1.44 1.96 • Galliard Core Fixed Inc / y 0.0 2.02 • Barclays Int Agg Index 0.95 1.95 • Barclays Int Agg Index 1.70 v 25.0 Median 1.37 1.89 00 000 0 0 0 0 1.90 Historical Statistics - 3 Years 0 0 0 0 0 Tracking 50.0 0 0 0 0 0 0 0 0 0 Downside Error a Market Alpha Ratio 0 Beta 0 0 0 Capture Capture Galliard Core Fixed Inc 0.27 0 0 87.51 e 75.00 0.33 000000 1.25 Barclays Int Agg Index 0.00 100.00 0 0.00 1.00 Historical Statistics - 5 Years 00 Tracking Up Down Information Sharpe 100.0 Error Market Market Alpha Ratio Ratio Beta Under Capture Capture Performance 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 5.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count 1.98 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 2.20 2.00 E 1.80 1.60 1.86 1.89 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) N 1.92 1.95 1.98 Risk (Standard Deviation %) Return 0 2.01 2.04 Standard Deviation • Galliard Core Fixed Inc 1.44 1.96 • Galliard Core Fixed Inc 2.10 2.02 • Barclays Int Agg Index 0.95 1.95 • Barclays Int Agg Index 1.70 1.96 Median 1.37 1.89 Median 1.91 1.90 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.27 107.49 87.51 0.49 1.81 0.33 1.00 1.25 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 0.29 106.41 91.50 0.36 1.36 0.78 1.02 1.12 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 ca Peer Group Analysis - IM U.S. TIPS (SA+CF) 4.31 3.70 3.09 2.48 1.87 «' 1.26 - K 0.65 •p old 0.04 00 -0.57 •O 11.00 8.00 5.00 2.00 MASON -1.00 y -4.00 -7.00 1 -10.00 ■ Performance Review Galliard TIPS As of September 30. 2018 32 Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 O Galliard TIPS -0.40 (19) 0.39 (76) 0.39 (76) 0.08 (42) 1.61 (93) 1.11 (80) 1.01 (81) O Galliard TIPS 0.39 (76) -0.23 (38) 4.75 (95) -0.38 (19) 0.59 (86) -3.71 (10) O Barclays US TIPS 1-10 Yr -0.42 (23) 0.33 (91) 0.33 (91) 0.10 (41) 1.65 (91) 1.03 (91) 0.94 (92) O Barclays US TIPS 1-10 Yr 0.33 (91) -0.14 (35) 4.83 (95) -0.82 (55) 0.61 (81) -3.90 (18) Median -0.74 0.43 0.43 0.00 2.11 1.35 1.38 Median 0.43 -0.52 6.56 -0.80 1.57 -5.73 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Galliard TIPS 0.63 (81) -0.39 (18) 0.55 (89) 0.70 (90) -0.50 (92) 1.42 (26) Barclays US TIPS 1-10 Yr 0.61 (86) -0.40 (18) 0.53 (92) 0.70 (90) -0.40 (75) 1.05 (87) IM U.S. TIPS (SA+CF) Median 0.76 -0.73 1.26 0.89 -0.37 1.28 32 3 Yr Rolling Under/Over Performance - 5 Years 4.0 Over -- Performance 2.0 rn a_ ~ 0.0 0 A -2.0 Under -4.0 Performance -4.0 -2.0 0.0 2.0 4.0 Barclays US TIPS 1-10 Yr (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.20 2.00 1.80 1.60 • 1.40 1 1 1 1 2.00 2.20 2.40 2.60 2.80 3.00 3.20 Risk (Standard Deviation %) Return Standard Deviation Performance Review Galliard TIPS As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 2.40 • Galliard TIPS 1.01 A O Barclays US TIPS 1-10 Yr 1.65 °p 2.30 • Barclays US TIPS 1-10 Yr 0.94 v 25.0 ° ° 8 ° 2.95 Median c 3.57 Historical Statistics - 3 Years v 50.0 -� ° Tracking Up Down a Information Sharpe ° Downside Error Market E 75.0 ° Ratio O ° ° ° ° ° - Capture eeoe°O o8o°oo0S8 Galliard TIPS 0.43 100.0 100.68 -0.08 -0.08 0.34 1.03 1.36 Barclays US TIPS 1-10 Yr 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 Historical Statistics - 5 Years 5-25 25 -Median Median -75 75-95 Total Period Tracking Up Down Information Sharpe Downside Count Error Count Count Count 1p Galliard TIPS 20 • Barclays US TIPS 1-10 Yr 20 Peer Group Scattergram - 5 Years 1.60 is 1.40 1.20 1.00 O 0.80 1 2.55 2.70 2.85 2 (10%) 2 (10%) 5 (25%) 11 (55%) 2 (10%) 0 (0%) 2 (10%) 16 (80%) n L 1 1 1 3.00 3.15 3.30 3.45 3.60 Risk (Standard Deviation %) Return Standard Deviation 3.75 • Galliard TIPS 1.61 2.40 • Galliard TIPS 1.01 2.99 O Barclays US TIPS 1-10 Yr 1.65 2.30 • Barclays US TIPS 1-10 Yr 0.94 2.78 Median 2.11 2.95 Median 1.38 3.57 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.43 99.59 100.68 -0.08 -0.08 0.34 1.03 1.36 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 0.82 98.15 95.46 0.04 0.09 0.18 1.03 1.74 Barclays US TIPS 1-10 Yr 100.00 100.00 1.00 1.73 33 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 4.00 3.35 2.70 2.05 1.40 E v 0.75 K 0.10 -0.55 -1.20 -1.85 -2.50 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of September 30. 2018 8.00 6.00 4.00 E v 2.00 K 0.00 -2.00 -4.00 L-- J Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • VG ST Bond Index (VSCSX) -0.14 (41) 1.55 (27) 3.40 (20) N/A N/A N/A • Barclays US Corp 1-5 Yr Index 0.11 (28) 1.82 (20) 3.33 (21) 1.98 (8) 2.46 (25) 1.47 (16) Median -0.38 0.85 2.56 1.21 1.64 -0.52 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 0.67 (15) -0.14 (41) -0.14 (41) 0.70 (32) 1.59 (25) N/A N/A • Barclays US Corp 1-5 Yr Index 0.71 (8) 0.11 (28) 0.11 (28) 0.96 (22) 1.74 (20) 1.80 (9) 1.93 (8) Median 0.34 -0.38 -0.38 0.24 1.06 1.05 1.24 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of September 30. 2018 8.00 6.00 4.00 E v 2.00 K 0.00 -2.00 -4.00 L-- J Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • VG ST Bond Index (VSCSX) -0.14 (41) 1.55 (27) 3.40 (20) N/A N/A N/A • Barclays US Corp 1-5 Yr Index 0.11 (28) 1.82 (20) 3.33 (21) 1.98 (8) 2.46 (25) 1.47 (16) Median -0.38 0.85 2.56 1.21 1.64 -0.52 34 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 VG ST Bond Index (VSCSX) 0.28 (21) -1.03 (91) -0.05 (38) 0.66 (24) 0.89 (16) 0.75 (37) Barclays US Corp 1-5 Yr Index 0.29 (21) -0.80 (65) -0.09 (43) 0.76 (13) 0.93 (13) 0.94 (14) IM U.S. Intermediate Investment Grade (MF) Median 0.12 -0.72 -0.13 0.53 0.69 0.70 34 3 Peer Group Analysis - IM Global Fixed Income (MF) 8.00 6.00 4.00 2.00 • v 0.00 K -2.00 -4.00 -6.00 Performance Review PIMCO Diversified Income Fund Inst) (PDIIX) As of September 30. 2018 16.00 12.00 O 8.00 0 4.00 0.00 K -4.00 -8.00 -12.00 35 -16.00 � I I I I I J -8.00 IL Oct- Oct- Oct- Oct- Oct- Oct - 2017 2016 2015 2014 2013 2012 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2018 2017 2016 2015 2014 2013 • PIMCO Diversified Income Fund Instl (PDIIX) 1.71 (3) N/A N/A N/A N/A N/A N/A O PIMCO Diversified Income Fund Instl (PDIIX) N/A N/A N/A N/A N/A N/A O Blmbg. Barc. Global Credit (Hedged) 0.98 (9) 0.39 (19) 0.39 (19) 1.71 (15) 4.14 (12) 3.31 (2) 4.01 (4) O Blmbg. Barc. Global Credit (Hedged) ).39 (19;).04 (27;).19 (25;).86 (18)i.83 (9) 1.46(8) Median .0.39 1.19 .1.19 0.00 2.36 0.78 1.39 Median 1.19 1.02 7.42 3.85 3.37 1.81 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 PIMCO Diversified Income Fund Instl (PDIIX) -0.92 (33) N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged) -0.44 (15) -1.15 (96) 1.02 (19) 1.44 (61) 1.79 (65) 1.52 (69) IM Global Fixed Income (MF) Median -2.23 0.76 0.66 1.58 2.30 2.07 35 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 v 8.00 5.00 2.00 -1.00 -4.00 •* • 6 dd 00 0, Comparative Performance 26.00 23.00 20.00 17.00 14.00 - v 11.00 • 8.00 - • 5.00 2.00 r Performance Review American Core RE As of September 30. 2018 -1.00 J Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • American Core RE 8.50 (70) 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) O American Core RE Policy 8.82 (65) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) Median 9.63 8.29 11.32 15.45 12.78 13.18 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 2.19 (50) 8.50 (70) 8.50 (70) 8.01 (70) 8.35 (80) 9.73 (85) 10.28 (80) • American Core RE Policy 2.09 (61) 8.82 (65) 8.82 (65) 8.32 (63) 9.08 (60) 10.46 (62) 10.84 (63) Median 2.19 9.63 9.63 8.83 9.72 11.02 11.25 Comparative Performance 26.00 23.00 20.00 17.00 14.00 - v 11.00 • 8.00 - • 5.00 2.00 r Performance Review American Core RE As of September 30. 2018 -1.00 J Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • American Core RE 8.50 (70) 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) O American Core RE Policy 8.82 (65) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) Median 9.63 8.29 11.32 15.45 12.78 13.18 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 American Core RE 2.09 (68) 2.23 (47) 1.73 (90) 1.88 (44) 1.97 (40) 2.27 (30) American Core RE Policy 2.13 (64) 2.17 (57) 2.15 (59) 1.89 (44) 1.71 (69) 1.83 (53) IM U.S. Open End Private Real Estate (SA+CF) Median 2.25 2.22 2.26 1.75 1.91 1.91 3 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over Performance .�.�. 14.0 W K v 12.0 u 10.0 • E 8.0 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 10.34 9.87 Performance Review American Core RE As of September 30. 2018 3 Yr Rolling Percentile Ranking - 5 Years 8.35 0.99 • American Core RE y 0.0 c 1.64 O American Core RE Policy 9.08 A K • American Core RE Policy 10.84 1.32 w 25.0 9.72 1.11 Median c 50.0 1.70 Historical Statistics - 3 Years O O o v E 75.0 8 8° ° o e 8 8 0 0 0 o O Q 0 0 o o e Up Down O K O O O O°° Error Market 100.0 Alpha Ratio Ratio Beta Risk Under Capture Capture Performance 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 1 2.17 -0.80 7.01 0.68 0.00 14.0 16.0 5-25 100.00 25 -Median Median -75 75-95 Total Period Count 0.00 Count Count Count 9.40 «' 8.93 O v K 8.46 • 7.99 1 1 1 1 0.72 0.78 0.84 0.90 0.96 1.02 1.08 1.14 1.20 Risk (Standard Deviation %) Return Standard Deviation 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 11.55 11.22 10.89 O «' 10.56 v K 10.23 9.90 1 1.20 1.28 1.36 0 (0%) 0 (0%) 8 (40%) 12 (60%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 1 1 1 1.44 1.52 1.60 Risk (Standard Deviation %) Return u 1.68 1.76 Standard Deviation 1.84 O American Core RE 8.35 0.99 • American Core RE 10.28 1.64 O American Core RE Policy 9.08 0.83 • American Core RE Policy 10.84 1.32 Median 9.72 1.11 Median 11.25 1.70 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 0.86 92.22 N/A 2.17 -0.80 7.01 0.68 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 95.02 N/A -0.01 -0.49 5.26 0.95 0.00 American Core RE Policy 0.00 100.00 N/A 1.00 0.00 37 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 v 8.00 5.00 2.00 O O -1.00 -4.00 O O O 'EM 0 0 0 NA 26.00 23.00 20.00 17.00 14.00 • 11.00 8.00 5.00 2.00 1.00 Performance Review Intercontinental As of September 30. 2018 • 38 Oct -2017 Oct -2016 Oct -2015 Oct -2014 Oct -2013 Oct -2012 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2018 Sep -2017 Sep -2016 Sep -2015 Sep -2014 Sep -2013 • Intercontinental 2.52 (25) 11.40 (10) 11.40 (10) 11.61 (9) 12.17 (24) 12.62 (30) 12.91 (30) • Intercontinental 11.40 (10) 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) • NCREIF Fund Index 2.09 (60) 8.68 (67) 8.68 (67) 8.17 (67) 8.80 (70) 10.30 (63) 10.72 (64) • NCREIF Fund Index 8.68 (67) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) Median 2.19 9.63 9.63 8.83 9.72 11.02 11.25 Median 9.63 8.29 11.32 15.45 12.78 13.18 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Mar -2017 Intercontinental 2.89 (28) 2.79 (15) 2.75 (14) 2.53 (14) 1.43 (87) 1.71 (55) NCREIF Fund Index 2.05 (70) 2.20 (54) 2.07 (70) 1.87 (44) 1.70 (70) 1.77 (54) IM U.S. Open End Private Real Estate (SA+CF) Median 2.25 2.22 2.26 1.75 1.91 1.91 38 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over Performance x-15.0 °.° b 00 r O OO O O v r 12.0 X 0 O 0 c U 1:c 9.0 6.0 � 6.0 9.0 12.0 15.0 NCREIF Fund Index (%) eOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 14.00 ems.'. 12.00 E 10.00 0 8.00 0.00 0.50 1.00 1.50 2.00 2.50 Risk (Standard Deviation %) Return Performance Review Intercontinental As of September 30. 2018 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 2.92 • Intercontinental 12.91 y 0.0 O NCREIF Fund Index 8.80 0.79 O NCREIF Fund Index 10.72 c v 25.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c Historical Statistics - 3 Years O 0 50.0 Tracking Up 0 Information Sharpe EL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Beta 75.0 0 0 0 K Intercontinental 2.47 137.09 N/A -8.61 1.28 3.61 Under 100.0 NCREIF Fund Index 100.00 N/A 0.00 N/A . Performance 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 18.0 Total Period 5-25 25 -Median Median -75 75-95 Sharpe Downside Count Count Count Count Ratio O Intercontinental 20 8 (40%) 12 (60%) 0(0%) 0 (0%) O NCREIF Fund Index 20 0 (0%) 0 (0%) 20(100%) 0 (0%) Peer Group Scattergram - 5 Years 13.50 O O r.. 12.75 E 12.00 «' 11.25 0 10.50 9.75 3.00 3.50 0.93 1.24 1.55 1.86 2.17 2.48 2.79 3.10 3.41 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Intercontinental 12.17 2.92 • Intercontinental 12.91 2.88 O NCREIF Fund Index 8.80 0.79 O NCREIF Fund Index 10.72 1.35 Median 9.72 1.11 Median 11.25 1.70 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.47 137.09 N/A -8.61 1.28 3.61 2.41 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 2.64 119.84 N/A 3.46 0.78 3.99 0.87 0.00 NCREIF Fund Index 100.00 N/A ^ 00 0.00 KE 3 Private Equity Fund Overview Crescent Direct Lending Fund As of September 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: $173,813 $3,120,000.0 Interest: - Total Contributions: $2,883,176 $2,340,000.0 Remaining Capital Commitment: $417,974 Total Distributions: $1,659,530 $1,560,000.0 Market Value: $1,538,918 Inception Date: 10/14/2014 $780,000.0 Inception IRR: 7.0 NPI: 1.1 $0.0 ($780,000.0) 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 Net Asset Value Distribution Contributions 40 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 September 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 September 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 Galliard Yes No NIA Yes No NIA Yes No NIA Yes American RE Intercontinental PIMCO Yes No NIA Yes No NIA Yes No NIA Yes TIPS No NIA No NIA Yes No NIA Yes No NIA VG Short BD Winter Springs General Employees General Plan and Trust Fee Analysis As of September 30, 2018 Receipt & Disbursement 625,858 - Total Fund 0.40 52,893,469 211,840 43 Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 27,105,008 10,842 0.04 % of Assets Total Domestic Equity 0.04 27,105,008 10,842 RBC Global (Voyageur) 0.95 8,901,652 84,566 0.95 % of Assets Total International Equity 0.95 8,901,652 84,566 Galliard Core Fixed Income 0.25 4,709,841 11,775 0.25 % of Assets Galliard TIPS 0.15 1,213,425 1,820 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 16,774 20 0.12 % of Assets Total Domestic Fixed Income 0.21 6,930,015 14,605 PIMCO Diversified Income Fund Instl (PDIIX) 0.75 1,784,902 13,387 0.75 % of Assets Total Global FI 0.75 1,784,902 13,387 Crescent Direct Lending Fund 1.35 1,538,918 20,775 1.35 % of Assets Crescent Direct Lending II Fund 1.35 634,870 8,571 1.35 % of Assets Total Other Fixed Income 1.35 2,173,788 29,346 Intercontinental 1.10 3,305,575 36,361 1.10 % of Assets American Core Realty Fund 1.10 2,066,672 22,733 1.10 % of Assets Total Real Estate 1.10 5,372,247 59,095 Receipt & Disbursement 625,858 - Total Fund 0.40 52,893,469 211,840 43 Disclosures Total Fund As of September 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