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HomeMy WebLinkAbout2019 02 14 Regular 502 Quarterly Investment ReportBOARD OF TRUSTEES AGENDA ITEM ITEM 502 February 14, 2019 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 First Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (50 Pages) Investment Performance Review Period Ending December 31, 2018 Winter Springs General Employees Plan and Trust AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom As we start 2019, we first want to say "Thank you" for giving AndCo the opportunity to serve you. On behalf of our entire organization, we are extremely grateful for our client partnerships and we will continue working hard to maintain your trust and confidence. Our mission statement reads — "To represent the sole interest of our clients by redefining independence". We're happy to report we remain steadfast in this core belief and continue to build an organization and service model that is singularly focused and independent. This helps ensure all recommendations are truly in the best interest of our valued clients. We believe this approach will drive value for our client partnerships long into the future. AndCo also remains committed to delivering high quality, customized services. As we start 2019, we are 89 employees strong advising approximately $90 billion in client assets - both record highs for AndCo. In 2018 we hired 7 new team members including one consultant, two research professionals, one additional compliance officer, one technology administrator and two team members within our client solutions group. All hires were made to better service our clients. 2019 will represent another year of reinvestment in the organization to better serve our clients and make AndCo stronger. For example, we have already hired a new Senior Research Analyst bringing our dedicated research team to 15 professionals. As 2019 progresses, we are targeting additional hires in research, software development, content creation and our client solutions group. We will also be partnering with an external firm this year to conduct an in-depth client assessment to help ensure we are meeting the evolving needs of our clients and exceeding their service expectations. There will be more information regarding this survey from the firm and your consultant over the coming months. AndCo Firm Update Finally, we just completed our annual Firmwide retreat. This retreat was a great opportunity for our firm to spend time together with colleagues and get a clear understanding of where the company is going, and more importantly, why we're headed in that direction. Since the inception of AndCo, the idea has been to make the firm a multigenerational organization owned and managed by its employees. As a result, since 2015, along with the strategic elements of our annual retreat, we also started the process of announcing new partners of the firm to foster this succession plan and today we have 8 partners controlling 100% of the company. The evolution of our firm would not be possible without great partners like you. Our name reminds us who we work for every day: "Our Client" &Co. You will always be first in our service approach. As we continue to discuss updates with our firm, please know every decision is made by asking "How does this benefit our clients?" If it doesn't benefit you, we don't do it, it's that simple. We know our clients are facing many challenges and we want to be there to help get you through all environments. We are honored and humbled you have chosen AndCo as your partner. We don't take that relationship for granted and will continue to work tirelessly to exceed your expectations. On behalf of AndCo, thank you for your valued partnership and the opportunity to serve you. I du� Mike Welker, CFA® President/CEO Markets were volatile to end the 2018 calendar year. Both international and domestic equity markets had considerable losses during the 4t" quarter while fixed income returns were muted, but outperformed relative to equities. Within equities, domestic stocks trailed international markets, reversing the 2018 trend of US market strength. Trade tensions between the US and China, midterm elections in US Congress, the effects of ongoing monetary policy tightening by the Federal Reserve (Fed), federal debt ceiling negotiations and the subsequent partial government shutdown outweighed generally positive corporate earnings and macroeconomic data reported during the quarter. The large cap S&P 500 Index returned -13.5% during the quarter while the small cap Russell 2000 Index fell by over 20% for the period. The drop in equity prices over the last three months was enough to take the returns for major US equity indices into negative territory for the 2018 calendar year. Returns over the 1 -year period were -4.4% and -11.0% for the S&P 500 and Russell 2000 respectively. Similar to US equities, international equity index returns finished the quarter in negative territory with the MSCI ACWI ex US Index returning -11.5%. International markets faced headwinds from softening global macroeconomic data, tightening global monetary policy, uncertainty around Brexit negotiations, turmoil surrounding global trade relations, falling commodity prices and continued US Dollar (USD) strength. The developed market MSCI EAFE Index fell -12.5% during the 4t" quarter, ending the year down -13.8%. Emerging markets performed well by comparison, only losing -7.5% during the quarter. Despite the 4t" quarter outperformance, returns for emerging market equities trailed developed markets over the 1 -year period with the MSCI Emerging Markets Index returning -14.6% versus a -13.8% return for the MSCI EAFE Index. Fixed income securities outperformed equities through both the 4t" quarter and calendar year 2018 with the broad market Bloomberg Barclays Aggregate Index returning 1.6% and 0.0% respectively. Interest rates on the US Treasury Yield Curve continued their 2018 flattening trend as short-term rates increased to near-term highs while long- term rates fell during the quarter. Some of the increase in short-term rates can be attributed to the late December Fed interest rate hike. This marked the fourth Fed interest rate increase of 2018. This movement in rates did lead to some short-term rates being higher than those of longer dated maturities. More conservative fixed income sectors such as Treasuries and mortgage backed securities outperformed during the quarter and for the year as investors moved toward the relative safety these securities provide while widening credit spreads acted as a headwind to corporate issues. Source: Investment Metrics MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill The Market Environment Major Market Index Performance As of December 31, 2018 Quarter Performance -11.5% -12.5% -7.5% -13.5% -14.3o/d -13.8% -15.4% -20.2% -0.4% -0.2% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3 -Month T -Bill -20.0% 2 -14.2% -11 % -14.6% -4.4% -5.2% -4.8% -9.1 -11.0% -1.3% -2.5% F -15.0% -10.0% -5.0% J 1.6% 2.5% 2.1% 0.6% 5.0% 0.0% 0.9% 1.0% 1.9% 0.0% 5.0% ■ US equity index returns were strongly negative across the style and capitalization spectrum during the 4t" quarter of 2018. Despite these negative results, there was positive data in GDP, unemployment, wage growth, retail sales, and corporate earnings during the period. These positive economic factors were offset by softening data in housing, consumer confidence and manufacturing, tightening monetary policy, negative guidance for future corporate earnings and signs of slowing global growth which all contributed to the heavy selling in equities. Investors also considered the effects of ongoing trade negotiations, especially between the US and China, and the results of the US congressional midterm elections which likely reduced the chances of any major policy changes or new fiscal stimulus measures. The effects of partisan politics was particularly evident at the end of the quarter as budget negotiations between Democrats and Republicans collapsed over disagreement around the inclusion of funds for a border wall with Mexico, leading to a partial government shutdown to end the year. ■ During the quarter, large cap stocks outperformed mid and small cap equities across growth, value and core indices. The large cap Russell 1000 Index fell - 13.8% during the 4t" quarter versus a -20.2% drop for the Russell 2000 Index. Part of the reason for weakness in small cap names is the steady increase in interest rates that occurred over 2018 as small cap companies typically maintain a higher percentage of debt than their large cap peers. Small cap names are also typically more volatile than larger companies and they have historically underperformed during market downturns. Similar to the most recent quarter, large cap stocks outperformed relative to small caps through calendar year 2018. The Russell 1000 returned -4.8% for the 1 -year periods compared to a -11.0% return for the Russell 2000. ■ Value indices outperformed growth indices across the market cap spectrum during the 4t" quarter, reversing a year-to-date trend of growth stock outperformance. The large cap Russell 1000 Value Index was the best performing style index for the period, returning -11.7% for the quarter, while the Russell 2000 Growth Index was the worst performer, returning -21.7%. Value benchmarks tend to outperform in down markets as they benefit from their relative safety and higher dividend yields. Despite the short-term underperformance, growth benchmarks continue to outperform over the 1 -year period, however, many of the sector exposures that drove growth stock outperformance during the first three quarters of the year, such as technology and consumer discretionary, were relative detractors during the 4t" quarter. 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth The Market Environment Domestic Equity Style Index Performance As of December 31, 2018 Quarter Performance - Russell Style Series -12.2% -14.3% -16.3% 11.7% -13.8% -15.9% -15.0% -15.4% -16.0% -18.7% -20.2% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 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 -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 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 negative across large cap sectors for the 4t" quarter. All sectors within the Russell 1000 Index with the exception of the utilities sector posted negative returns for the period with seven sectors outpacing the return on the index. Cyclical sectors such as energy, industrials and technology were the worst performers through the quarter returning -24.8%, -17.8% and -17.4% respectively. Energy companies were hurt by a steep decline in oil prices during the quarter while technology and industrial companies fell on negative guidance for future earnings. More defensive, higher dividend paying sectors such as utilities, REITs and consumer staples were the strongest performing sectors with returns of 1.1%, -5.2% and -5.3% respectively. Only three sectors (health care, utilities, technology) posted positive results over the 1 -year period with the remaining sectors losing ground during the calendar year. ■ Quarterly results for small cap sectors were generally lower relative to their large capitalization counterparts. All eleven sectors had negative returns during the period with six of eleven economic sectors outpacing the Russell 2000 Index return for the quarter. Energy, materials and healthcare posted the worst returns for the period returning -41.2%, -26.4% and -25.8% respectively. Similar to large caps, defensive sectors performed well with utilities, consumer staples and real estate detracting the least returning -2.0%, -13.2% and -14.1% respectively. Over the trailing 1 -year period, only utilities posted a gain returning 3.1%. Energy stocks were the worst performers in 2018, falling a considerable -41.2%. ■ Using S&P 500 sector valuations as a proxy for the market, forward P/E ratios for three 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 energy sectors were trading at a discount to their long-term average P/E ratios. Comm Services (9.4%) Consumer Disc (10.1 %) Consumer Staples (6.7%) Energy (5.5%) Financials (13.7%) Health Care (14.5%) Industrials (9.8%) Info Technology (20.9%) Materials (2.9%) Real Estate (3.5%) Utilities (3.0%) The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2018 Russell 1000 1 ❑Quarter 01 -Year -13.2% -6.2% -16.1% -0.2% 5.3% -24.8% - 0 ' ° -18.5% -13.2% -13.1 % -9.6% 6.1% -178% 13.7 o -17.4% 3. % -13.5 /o -16.2% _5.2% -3.7 o 1.1% 4.7% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Russell 2000 1❑Quarter 111 -Year Comm Services (3.3%) Consumer Disc (12.3%) Consumer Staples (2.8%) Energy (4.5%) Financials (17.9%) Health Care (16.0%) Industrials (15.0%) Info Technology (13.9%) Materials (3.9%) Real Estate (7.0%) Utilities (3.4%) -18.8% -2.9% -20.2% -9.8% -13.2 -41.2% -9.2% -39.1% -16.5% -11.4% -25.8% -6.5% -21.4% -17.4% -16.9% 0.8% -26.4% -25.2% -14.1% -11.2% -2.0% 3.1 -45.0% -35.0% -25.0% -15.0% -5.0% 5.0% Source: Morningstar Direct `- As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represe4ts backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. _W Russell 1000 Microsoft Corp Top 10 Weighted Weight 3.27% Stocks 1 -Qtr Return -11.2% 1 -Year Return 20.3% Sector Information Technology Apple Inc 3.24% -29.9% -5.4% Information Technology Amazon.com Inc 2.59% -25.0% 28.4% Consumer Discretionary Berkshire Hathaway Inc B 1.68% -4.6% 3.0% Financials Johnson & Johnson 1.47% -6.0% -5.1% Health Care JPMorgan Chase & Co 1.39% -12.9% -6.6% Financials Alphabet Inc Class C 1.34% -13.2% -1.0% Communication Services Alphabet Inc A 1.32% -13.4% -0.8% Communication Services Facebook Inc A 1.32% -20.3% -25.7% Communication Services Exxon Mobil Corp 1.23% -19.0% -15.1% Energy ITop Lsell rrr r Weight ing Stocks (by Qtr m Quarter) 1 -Year Sector Tesaro Inc 0.01% 90.3% -10.4% Health Care Red Hat Inc 0.13% 28.9% 46.2% Information Technology Virtu Financial Inc A 0.00% 27.1% 45.9% Financials Tesla Inc 0.19% 25.7% 6.9% Consumer Discretionary SCANA Corp 0.03% 23.2% 23.1% Utilities Tribune Media Co A 0.02% 18.9% 9.7% Communication Services MarketAxess Holdings Inc 0.03% 18.6% 5.6% Financials ARRIS International PLC 0.02% 17.6% 19.0% Information Technology United States Cellular Corp 0.00% 16.1% 38.1% Communication Services Newmont Mining Corp 0.08% 15.2% -6.2% Materials - rrr ing Stocks (by Qtr m Quarter) Return Sector Weatherford International PLC 0.00% -79.4% -86.6% Energy Nabors Industries Ltd 0.00% -66.8% -69.3% Energy Extraction Oil & Gas Inc 0.00% -62.0% -70.0% Energy Adient PLC 0.01% -61.4% -80.4% Consumer Discretionary Whiting Petroleum Corp 0.01% -57.2% -14.3% Energy Kosmos Energy Ltd 0.00% -56.5% -40.6% Energy Chesapeake Energy Corp 0.01% -53.2% -47.0% Energy Conduent Inc 0.01% -52.8% -34.2% Information Technology NVIDIA Corp 0.33% -52.4% -30.8% Information Technology SM Energy Co 0.01% -50.8% -29.6% Energy The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2018 or Irussell 0001 7�w -Year Return Sector Integrated Device Technology Inc 0.35% 3.0% 62.9% Information Technology Etsy Inc 0.32% -7.4% 132.6% Consumer Discretionary Five Below Inc 0.31% -21.3% 54.3% Consumer Discretionary Haemonetics Corp 0.29% -12.7% 72.3% Health Care Ciena Corp 0.27% 8.5% 62.0% Information Technology Planet Fitness Inc A 0.26% -0.8% 54.8% Consumer Discretionary Idacorp Inc 0.26% -5.6% 4.6% Utilities HubSpot Inc 0.26% -16.7% 42.2% Information Technology Livallova PLC 0.25% -26.2% 14.5% Health Care Cree Inc 0.24% 13.0% 15.2% Information Technology .I Electro Scientific Industries Inc 0.05% 71.7% 39.8% nformation Technology Fluent Inc 0.01% 67.4% 3.4% Communication Services Mitek Systems Inc 0.02% 53.3% 20.8% Information Technology Arsanis Inc 0.00% 43.2% -81.8% Health Care Inovalon Holdings Inc 0.05% 41.1% -5.5% Health Care K12 Inc 0.05% 40.1% 55.9% Consumer Discretionary Investment Technology Group Inc 0.05% 39.9% 59.0% Financials Eidos Therapeutics Inc 0.01% 37.9% N/A Health Care Belmond Ltd Class A 0.13% 37.2% 104.3% Consumer Discretionary Pacific Biosciences of California Inc 0.06% 36.8% 180.3% Health Care Bottom Russell 2LMN� r 1-QtrAIh Quarter) 1 -Year Synergy Pharmaceuticals Inc 0.00% -93.3% -94.9% Health Care Sanchez Energy Corp 0.00% -88.3% -94.9% Energy Sienna Biopharmaceuticals Inc 0.00% -84.3% -87.2% Health Care Cloud Peak Energy Inc 0.00% -84.1% -91.8% Energy Selecta Biosciences Inc 0.00% -82.9% -72.9% Health Care Clearside Biomedical Inc 0.00% -82.6% -84.7% Health Care Key Energy Services Inc 0.00% -81.9% -82.4% Energy AAC Holdings Inc 0.00% -81.7% -84.4% Health Care PHI Inc Non -Voting Shares 0.00% -80.2% -84.0% Energy Bristow Group Inc 0.00% -80.0% -82.0% Energy l� Source: Morningstar Direct 5 Broad international equity returns were negative for the quarter in both local currency and USD terms. Geopolitical concerns, weakening economic data and the tightening of global monetary policy drove most of the negative performance. The USD also continued to strengthen against most currencies for the period which provided a headwind for USD based investors. The MSCI ACWI ex US Index fell -10.9% in local currency terms and -11.5% in USD terms during the 4t" quarter. Returns for international indices were also broadly negative over the 1 -year period in both local currency and USD terms with the MSCI ACWI ex US returning -10.7% and -14.2% respectively. Fourth quarter results for developed market international indices were negative in both local currency and USD terms with the MSCI EAFE Index returning - 12.2% and -12.5% respectively. Returns were dampened for US investors as the USD continued to appreciate against most currencies, pushing returns lower. Global economic reporting during the quarter fueled concerns that global growth was beginning to slow. Japanese economic data faced headwinds from several natural disasters and data out of Europe was generally disappointing. Investors also weighed the effects of several significant political events in Europe including riots in France, ongoing budget negotiations between Italy and the EU and uncertainty around Brexit. Concerns over a "no deal" Brexit grew during the quarter as the draft withdrawal agreement presented by UK Prime Minister Theresa May was poorly received leading to a wave of cabinet resignations, a delay in the parliamentary vote and a "no confidence" vote which she ultimately won. The MSCI EAFE Index returned -11.0% and -13.8% for the last twelve months in local currency and USD terms respectively. Emerging markets outperformed relative to developed markets for the 4t" quarter, but still declined in both local currency and USD terms with the MSCI Emerging Markets Index returning -7.4% and -7.5% respectively. Returns in emerging markets were hurt by the continued uncertainty surrounding trade relations between the US and China as both countries agreed to a 90 -day hold on any new tariffs to allow for continued negotiations. Chinese economic data also appeared to be slowing during the quarter prompting the announcement of additional monetary and fiscal stimulus. The election of President Andres Manuel Lopez Obrador hurt returns in Mexico as investors feared the potential ramifications of his nationalist campaign promises. In contrast, Brazil was one of the few bright spots during the quarter as market participants looked favorably on the election of President Jair Bolsonaro in anticipation of market friendly economic reforms, including reforms associated with the countries bloated state pension system which has weighed heavily on the country's debt load. One year returns for the MSCI Emerging Market Index were -10.1% in local currency terms and -14.6% in USD terms. The Market Environment International and Regional Market Index Performance (Country Count) As December 31, 2018 AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) Quarter Performance 110 -110.9% 1.8% 12.1 % 2.5% 12.2% 1 .7% -11.3% -12.2% -13.8% -7.5% -7.4% -9.3 9.6% -4.1% ❑USD ❑Local Currency -2.6% 0.4% -16.0% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 1 -Year Performance IoUSD ❑Local Currency AC World x US (46) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (24) EM EM EA (10) EM Asia (9) EM Latin Amer (5) -20.0% Source: MSCI Global Index Monitor (Returns are Net) 6 -14.2% -10.7% -14.1 -10.9% -13.8% 11.0% -14.8% -10.5% -12.0% -11.7% -14.6% _10.1% -16.1% -4.1% -15.5°x° -13.1% -6.6% -15.0% -10.0% -5.0% 0.0% 5.0% Communication Services Sector Weight 5.6% Quarter Return -7.7% 1 -Year Return -12.1% Consumer Discretionary 11.2% -14.2% -16.1% Consumer Staples 11.6% -8.4% -10.8% Energy 5.9% -17.5% -7.2% Financials 19.5% -13.7% -20.1% Health Care 11.2% -10.3% -4.3% Industrials 14.3% -14.6% -15.7% Information Technology 6.0% -16.7% -15.6% Materials 7.4% -15.2% -17.5% Real Estate 3.7% -5.4% -9.9% Utilities Total 3.8% 100 .0% -0.1% 1.1% Communication Services 7.6% e -5.5% -11.9% Consumer Discretionary 10.6% -14.1% -20.2% Consumer Staples 9.9% -7.4% -11.2% Energy 7.3% -16.3% -8.1% Financials 22.2% -10.7% -16.8% Health Care 8.4% -11.2% -6.2% Industrials 11.7% -13.7% -15.1% Information Technology 8.0% -14.6% -17.6% Materials 7.7% -13.4% -15.9% Real Estate 3.4% -3.8% -11.6% Utilities 3.4% 0.5% -0.9% Communication Services 14.1% -3.7% -14.9% Consumer Discretionary 10.4% -13.5% -32.5% Consumer Staples 6.7% -4.6% -13.7% Energy 8.0% -10.6% 4.7% Financials 24.8% -0.9% -8.7% Health Care 2.8% -16.2% -20.9% Industrials 5.5% -3.8% -12.6% Information Technology 14.2% -12.7% -19.3% Materials 7.7% -10.8% -11.6% Real Estate 3.0% 1.4% -17.2% Utilities Total 2.7% 100 .0% 3.6% -3.8% The Market Environment US Dollar International Index Attribution & Country Detail As of December 31, 2018 Country Weight jM_ Weight Return 11ORetum Japan 24.6% 16.6% 14.2% 12.9% United Kingdom 16.9% 11.4% -11.8% -14.2% France 11.1% 7.5% -15.1% -12.8% Germany 8.8% 6.0% -15.5% -22.2% Switzerland 8.7% 5.8% -8.9% -9.1% Australia 6.9% 4.7% -10.0% -12.0% Hong Kong 3.9% 2.6% -4.5% -7.8% Netherlands 3.4% 2.3% -11.0% -13.1% Spain 3.1% 2.1% -8.7% -16.2% Sweden 2.7% 1.8% -14.2% -13.7% Italy 2.3% 1.5% -11.8% -17.8% Denmark 1.8% 1.2% -9.8% -15.4% Singapore 1.4% 0.9% -6.7% -9.4% Finland 1.0% 0.7% -14.7% -3.4% Belgium 1.0% 0.6% -18.5% -26.9% Norway 0.7% 0.5% -18.1% -8.6% Ireland 0.5% 0.4% -17.7% -25.3% Israel 0.5% 0.4% -14.4% -5.5% Austria 1 0.2% 1 0.2% 1 -20.7% -27.4% New Zealand 1 0.2% 1 0.2% 1 -6.6% -4.0% Portugal 0.2% 0.1% -14.3% -11.10//o Canada Total Developed Countries China 6.5% 74.0% 7.9% -15.3% -10.7% -18.9% Korea 3.6% -13.1% -20.9% Taiwan 3.0% -13.7% -8.9% India 2.4% 2.5% -7.3% Brazil 2.0% 13.4% -0.5% South Africa 1.6% -3.8% -24.8% Russia 1.0% -9.0% -0.7% Mexico 0.7% -18.8% -15.5% Malaysia 0.6% -5.8% -6.0% Thailand 0.6% -10.2% -5.5% Indonesia 0.6% 9.7% -9.2% Poland 0.3% -3.0% -12.9% Philippines 0.3% 5.3% -16.5% Qatar 0.3% 8.4% 29.8% Chile 0.3% -8.7% -19.7% United Arab Emirates 0.2% -5.5% -7.7% Turkey 0.2% 4.8% -41.4% Colombia 0.1% -19.0% -11.5% Peru 0.1% -2.9% 1.6% Hungary 0.1% 5.9% -6.1% Greece 0.1% -16.0% -36.8% Czech Republic 0.0% -8.7% -4.5% Egypt 0.0% -9.4% -14.0% Pakistan 0.0% -22.4% -34.8% Source: Morningstar Direct, MSCI Global Index Monitor (Returns are Net in USD) 0 As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represe7ts backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. -W ■ Broad fixed income benchmarks had mixed results during the 4t" quarter. Interest rates rose across short-term maturities, but fell on those on the middle and long end of the US Treasury Yield Curve. The Federal Open Market Committee (FOMC), decided to increase short-term interest rates by 25 basis points at their December meeting citing the strength of the US economy which caused an increase in short-term interest rates, but equity market volatility led market participants toward less volatile assets, pushing rates lower on maturities greater than 1 -year. This was the fourth rate hike of 2018. The current Fed Funds Rate target range sits at 2.25%-2.50%. This caused continued flattening in the yield curve with some moderate inversion, which happens when short-term maturities have greater yields than long-term securities, in the middle of curve. The difference in yields between the 2 -year and 10 -year Treasury now sits at just 0.21%. 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. However, the Fed did lower its guidance for future rate increases in 2019 following a reduction in expectations for GDP and inflation. The Fed is now projecting just two additional interest rate increases in 2019. The Bloomberg Barclays US Aggregate Index was positive during the quarter, posting a 1.6% return, but was flat, returning 0.0% over the 1 -year period. ■ Within investment grade credit, higher quality issues outperformed lower quality issues as investors preferred more conservative securities. On an absolute basis, without negating the duration differences in the sub -indices, AAA rated credit was the best performing investment grade credit quality segment returning 2.3% for the quarter, while Baa was the worst performing, falling -0.9%. High yield debt trailed investment grade credit as spreads widened the most for these issues, returning -4.5%. Returns are mixed for the investment grade quality segments when viewed over the 1 -year period with higher quality issues outperforming lower quality securities. High yield performed well relative to lower quality investment grade debt due to the relatively strong returns experienced during the first three quarters of 2018. ■ During the 4t" quarter, the more defensive Treasury and mortgage backed sectors of the Bloomberg Barclays US Aggregate Index's three broad sectors were the best performers returning 2.6% and 2.1% respectively. Investment grade corporate credit underperformed, returning -0.2%, as credit spreads widened considerably during the period. This trend carried through to the 1 - year period as both Treasuries and mortgage backed securities outperformed both investment grade and high yield corporate debt. Calendar year 2018 performance for the Treasury, mortgage backed and investment grade corporate issues was 0.9%, 1.0% and -2.5% respectively. US TIPS returned - 0.4% and -1.3% for the 4t" quarter and 1-vear period. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of December 31, 2018 AAA (5.5) AA (5.9) A (7.1) Baa (7.2) U.S. High Yield (4.0) U.S. Treasury (6.1) U.S. Mortgage (4.7) U.S. Corporate IG (7.1) U.S. TIPS (5.2) Aggregate (5.9) Intermediate Agg (4.2) Global Agg x US (7.9) Multiverse (6.8) Quarter Performance 2.3% 1.3% 0.3% -0.9% -4.5% 2.6% 2.1% -0.2% -0.4% 1.6% 1.8% *01 9%.0% -6.0% -4.0% -2.0% AAA (5.5) AA (5.9) A (7.1) Baa (7.2) U.S. High Yield (4.0) U.S. Treasury (6.1) U.S. Mortgage (4.7) U.S. Corporate IG (7.1) U.S. TIPS (5.2) Aggregate (5.9) Intermediate Agg (4.2) Global Agg x US (7.9) Multiverse (6.8) Source: Bloomberg 8 1 -Year Performance -4.0% -2.3% -2.9% -2.1% -2.5% -1.3% -2.1% -1.4% -2.0% 0.0% 2.0% 4.0% 0.9% 0.1% 0.9% 1.0% 0.0% 0.9% 0.0% 2.0% Global fixed income indices continue to struggle relative to their domestic counterparts, underperforming during the 4t" quarter. These indices have lower yields and the returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. During the 4t" 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 0.9% and -2.1% 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 and ended the program entirely at year end. 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 and the Bank of Japan made no major policy changes during the quarter as they continue to review macroeconomic data within their respective countries. 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) fell during the 4t" quarter after rising steadily through most of the year as investors moved to safe haven assets during the period, ending the year at 2.69%. 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 relatively tight range in credit spreads throughout most of 2018, but highlights an abrupt increase during the 4t" quarter as investors moved to higher quality assets. This increase is equivalent to an interest rate increase on corporate bonds, which produces an additional headwind for corporate bond index returns. These credit spreads have widened by about 59 basis points over the last 3 -months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate (four increases in the last twelve months) due to the continued tightening of 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 with some minor inversion visible in the middle of the yield curve. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 The Market Environment Market Rate & Yield Curve Comparison As of December 31, 2018 1 -Year Trailing Market Rates Fed Funds Rate 3 -Month Libor 10 r Treasury TED Spread BAA OAS _10yr TIPS 1 al Dec -17 Jan -18 Feb -18 Mar -18 Apr -18 May -18 Jun -18 Jul -18 Aug -18 Sep -18 Oct -18 Nov -18 Dec -18 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Source: US Department of Treasury FRED (Federal Reserve of St. Louis) 9 Treasury Yield Curve —*--3/ 31/2018 X6/30/2018 X9/30/2018 X12/31/2018 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Asset Allocation By Segment as of September 30, 2018 : $5299479850 Allocation Allocation Asset Allocation Summary Total Fund As of December 31. 2018 Asset Allocation By Segment as of December 31, 2018 : $4890309374 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 27,105,008 51.2 _ Domestic Equity 23,240,343 48.4 m International Equity 8,901,652 16.8 m International Equity 7,647,079 15.9 ■ Domestic Fixed Income 6,923,354 13.1 ■ Domestic Fixed Income 6,986,087 14.5 ■ Global Fixed Income 1,784,902 3.4 ■ Global Fixed Income 1,741,286 3.6 ■ Other Fixed Income 2,222,458 4.2 ■ Other Fixed Income 2,076,396 4.3 7 Real Estate 5,347,528 10.1 7 Real Estate 5,405,134 11.3 Cash Equivalent 662,948 1.3 10 Cash Equivalent 934,049 UH Asset Allocation By Manager as of September 30, 2018 : $5299479850 Allocation Allocation Asset Allocation Summary Total Fund As of December 31. 2018 Asset Allocation By Manager as of December 31, 2018 : $4890309374 Market Value Allocation Market Value Allocation ■ Vanguard Total Stock Market (VITSX) 27,105,008 51.2 ■ Vanguard Total Stock Market (VITSX) 23,240,343 48.4 ■ RBC Global (Voyageur) 8,901,652 16.8 ■ RBC Global (Voyageur) 7,647,079 15.9 ■ Galliard Core Fixed Income 4,709,841 8.9 ■ Galliard Core Fixed Income 4,777,469 9.9 Intercontinental 3,305,575 6.2 Intercontinental 3,354,259 7.0 ■ American Core Realty Fund 2,066,672 3.9 ■ American Core Realty Fund 2,075,780 4.3 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,790,613 3.4 ■ PIMCO Diversified Income Fund Instl (PDIIX) 1,748,164 3.6 Crescent Direct Lending Fund 1,572,728 3.0 Crescent Direct Lending Fund 1,359,942 2.8 Galliard TIPS 1,213,425 2.3 Galliard TIPS 1,212,270 2.5 Vanguard Inflation -Protected Secs (VAIPX) 989,974 1.9 ■ Vanguard Inflation -Protected Secs (VAIPX) 985,053 2.1 Crescent Direct Lending II Fund 649,730 1.2 ■ Receipt & Disbursement 896,624 1.9 ■ Receipt & Disbursement 625,858 1.2 Crescent Direct Lending II Fund 716,454 1.5 ■ Vanguard Short Term Bond Index (VSCSX) 16,774 0.0 ■ Vanguard Short Term Bond Index (VSCSX) 16,937 0.0 Asset Allocation vs. Target Allocation Total Fund As of December 31, 2018 Asset Allocation vs. Target Allocation Total Domestic Equity -1.6% Total International Equity 0.9% Total Domestic Fixed Income -0.4% Total Global FI -1.4% Total Real Estate 1.3% Total Other Fixed Income -0.7% Receipt & Disbursement 1.9% -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 23,240,343 48.4 50.0 Total International Equity 7,647,079 15.9 15.0 Total Domestic Fixed Income 6,991,729 14.6 15.0 Total Global FI 1,748,164 3.6 5.0 Total Real Estate 5,430,039 11.3 10.0 Total Other Fixed Income 2,076,396 4.3 5.0 Receipt & Disbursement 896,624 1.9 0.0 Total Fund 48,030,374 100.0 100.0 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 Dec -2018 36,006,669 68.00 30,887,422 64.31 23,240,343 48.39 23,240,343 48.39 7,647,079 16.92 7,647,079 15.92 10,816,289 22.62 6,991,729 14.66 4,777,469 9.95 1,212,270 2.52 16,937 0.04 985,053 2.05 1,748,164 3.64 1,748,164 3.64 2,076,396 4.32 1,359,942 2.83 716,454 1.49 6,430,039 11.31 2,075,780 4.32 3,354,259 6.98 896,624 1.87 48,030,374 100.00 Sep -2018 626,868 1.18 62,947,860 100.00 13 Jun -2018 36,006,669 68.00 27,106,008 61.19 27,105,008 51.19 8,901,662 16.81 8,901,652 16.81 10,943,086 20.67 6,930,016 13.09 4,709,841 8.90 1,213,425 2.29 16,774 0.03 989,974 1.87 1,790,613 3.38 1,790,613 3.38 2,222,468 4.20 1,572,728 2.97 649,730 1.23 6,372,247 10.16 2,066,672 3.90 3,305,575 6.24 626,868 1.18 62,947,860 100.00 13 Jun -2018 34,218,124 67.00 26,449,666 49.83 25,449,555 49.83 8,768,669 17.17 8,768,569 17.17 10,723,877 21.00 6,931,946 13.67 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 3.96 1,538,918 3.01 478,176 0.94 6,281,766 10.34 2,052,496 4.02 3,229,259 6.32 846,678 1.66 61,070,434 100.00 Asset Allocation Asset Allocation History By Portfolio As of December 31, 2018 Mar -2018 33,146,360 66.40 24,492,747 49.06 24,492,747 49.06 8,663,602 17.33 8,653,602 17.33 10,699,049 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 1,976,338 3.96 1,615,799 3.24 359,539 0.72 6,183,738 10.38 2,040,417 4.09 3,143, 321 6.30 893,628 1.79 49,922,666 100.00 Dec -2017 36,666,962 71.01 26,777,676 63.48 26,777,576 53.4E 8,778,386 17.63 8,778,386 17.53 8,962,842 17.88 7,606,687 14.99 4,746,117 9.4E 1,235,959 2.47 117,161 0.23 1,406,350 2.81 0.00 - 0.00 1,447,266 2.89 1,447,255 2.89 - 0.00 6,088,367 10.16 2,025,745 4.05 3,062,622 6.12 472,631 0.94 60,069,802 100.00 3 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 December 31, 2018 0.0 L' _ 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 Domestic Equity International Equity Other Fixed Income Real Estate 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 Domestic Fixed Income Global Fixed Income Cash Equivalent 14 3 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of December 31, 2018 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 O O 12.0 4.0 O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 48.39 (17) 15.92 (52) 14.56 (94) 3.64 (73) 4.32 (81) 11.31 (18) 1.87 (38) 5th Percentile 57.46 26.67 55.83 10.96 37.76 14.88 7.83 1 st Quartile 45.12 20.83 38.23 5.46 20.75 10.74 2.49 Median 39.28 16.29 31.68 4.77 12.15 8.17 1.45 3rd Quartile 30.17 12.57 23.25 3.08 5.76 5.32 0.45 95th Percentile 16.85 7.38 14.07 0.40 1.52 3.37 0.06 l� 15 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31, 2018 Financial Reconciliation Quarter to Date In 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2018 Transfers Fees Expenses Deprec. 12/31/2018 Total Equity 36,006,659 21,083 -21,083 -1,390 155,616 -5,273,463 30,887,422 Total Domestic Equity 27,105,008 - - - 130,000 -3,994,664 23,240,343 Vanguard Total Stock Market (VITSX) 27,105,008 - - - 130,000 -3,994,664 23,240,343 Total International Equity 8,901,652 21,083 -21,083 -1,390 25,616 -1,278,799 7,647,079 RBC Global (Voyageur) 8,901,652 21,083 -21,083 -1,390 25,616 -1,278,799 7,647,079 Total Fixed Income 10,943,086 -166,046 -3,399 -150 35,365 7,432 10,816,289 Total Domestic Fixed Income 6,930,015 - -3,399 -150 13,984 51,278 6,991,729 Galliard Core Fixed Income 4,709,841 -3,399 - - 71,027 4,777,469 Galliard TIPS 1,213,425 - -150 901 -1,906 1,212,270 Vanguard Short Term Bond Index (VSCSX) 16,774 - 162 - 16,937 Vanguard Inflation -Protected Secs (VAIPX) 989,974 - 12,922 -17,843 985,053 Total Global FI 1,790,613 -19,984 21,151 -43,616 1,748,164 PIMCO Diversified Income Fund Instl (PDIIX) 1,790,613 -19,984 21,151 -43,616 1,748,164 Total Other Fixed Income 2,222,458 -146,062 230 -230 2,076,396 Crescent Direct Lending Fund 1,572,728 -212,786 - - 1,359,942 Crescent Direct Lending II Fund 649,730 66,724 - 230 -230 716,454 Total Real Estate 5,372,247 -24,719 -27,814 61,790 48,534 5,430,039 American Core Realty Fund 2,066,672 -24,719 -5,724 30,629 8,921 2,075,780 Intercontinental 3,305,575 - - - -22,090 - 31,161 39,613 3,354,259 Receipt & Disbursement 625,858 169,682 892,841 -768,705 - -27,016 3,965 - 896,624 Total Fund Portfolio 52,947,850 - 892,841 -768,705 -52,296 -28,556 256,736 -5,217,496 48,030,374 In 3 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2018 To December 31, 2018 Financial Reconciliation Fiscal Year to Date 17 3 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2018 Transfers Fees Expenses Deprec. 12/31/2018 Total Equity 36,006,659 21,083 -21,083 -1,390 155,616 -5,273,463 30,887,422 Total Domestic Equity 27,105,008 - - - 130,000 -3,994,664 23,240,343 Vanguard Total Stock Market (VITSX) 27,105,008 - - - 130,000 -3,994,664 23,240,343 Total International Equity 8,901,652 21,083 -21,083 -1,390 25,616 -1,278,799 7,647,079 RBC Global (Voyageur) 8,901,652 21,083 -21,083 -1,390 25,616 -1,278,799 7,647,079 Total Fixed Income 10,943,086 -166,046 -3,399 -150 35,365 7,432 10,816,289 Total Domestic Fixed Income 6,930,015 - -3,399 -150 13,984 51,278 6,991,729 Galliard Core Fixed Income 4,709,841 -3,399 - - 71,027 4,777,469 Galliard TIPS 1,213,425 - -150 901 -1,906 1,212,270 Vanguard Short Term Bond Index (VSCSX) 16,774 - 162 - 16,937 Vanguard Inflation -Protected Secs (VAIPX) 989,974 - 12,922 -17,843 985,053 Total Global FI 1,790,613 -19,984 21,151 -43,616 1,748,164 PIMCO Diversified Income Fund Instl (PDIIX) 1,790,613 -19,984 21,151 -43,616 1,748,164 Total Other Fixed Income 2,222,458 -146,062 230 -230 2,076,396 Crescent Direct Lending Fund 1,572,728 -212,786 - - 1,359,942 Crescent Direct Lending II Fund 649,730 66,724 - 230 -230 716,454 Total Real Estate 5,372,247 -24,719 -27,814 61,790 48,534 5,430,039 American Core Realty Fund 2,066,672 -24,719 -5,724 30,629 8,921 2,075,780 Intercontinental 3,305,575 - - - -22,090 - 31,161 39,613 3,354,259 Receipt & Disbursement 625,858 169,682 892,841 -768,705 - -27,016 3,965 - 896,624 Total Fund Portfolio 52,947,850 - 892,841 -768,705 -52,296 -28,556 256,736 -5,217,496 48,030,374 17 3 Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of December 31, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) -9.47 -.47 -3.51 7.13 A 5.97 _ 5.60 11/01/2000 Total Fund Policy -8.53 -8.53 -3.48 6.43 5.78 5.27 Total Fund (New Mgrs) (Net) -9.47 -9.47 -3.51 7.13 5.97 5.41 10/01/2007 Total Fund Policy -8.53 -8.53 -3.48 6.43 5.78 5.90 Total Fund (Gross) -9.37 (80) -9.37 (80) -3.18 (28) 7.47 (5) 6.30 (4) 6.20 (11) 11/01/2000 Total Fund Policy -8.53 (56) -8.53 (56) -3.48 (34) 6.43 (26) 5.78 (12) 5.27 ku-, All Public Plans -Total Fund Median -8.32 -8.32 -4.35 5.77 4.77 5.49 Total Fund (New Mgrs) (Gross) -9.37 (80) -9.37 (80) -3.18 (28) 7.47 (5) 6.30 (4) 5.93 (7) 10/01/2007 Total Fund Policy -8.53 (56) -8.53 (56) -3.48 (34) 6.43 (26) 5.78 (12) 5.90 (7) All Public Plans -Total Fund Median -8.32 -8.32 -4.35 5.77 4.77 4.96 Total Equity -14.21 -7.01 W4 OR" 6.25 01/01/2001 Total Equity Policy -13.87 -13.87 -7.10 7.72 6.34 5.07 Total Domestic Equity -14.26 (60) -14.26 (60) -4.95 (45) 9.14 (35) 7.96 (56) 6.37 (36) 11/01/2000 Total Domestic Equity Policy -14.30 (61) -14.30 (61) -5.24 (51) 8.97 (40) 7.91 (58) 5.14 (92) IM U.S. Large Cap Core Equity (SA+CF) Median -13.83 -13.83 -5.20 8.47 8.15 6.04 Total International Equity -14.08 (73) -14.08 (73) -12.83 (30) 6.03 (19) 3.26 (17) 5.85 (52) 11/01/2000 MSCI EAFE Index -12.50 (44) -12.50 (44) -13.36 (38) 3.38 (57) 1.00 (51) 3.83 (97) IM International Large Cap Value Equity (SA+CF) Median -12.88 -12.88 -14.64 3.66 1.03 5.93 Total Fixed Income 0.40 ' 0.40 JW 2.20 3.85 11/01/2000 Total Fixed Policy 1.80 1.80 0.92 1.72 2.09 4.42 Total Domestic Fixed Income 0.94 (84) 0.94 (84) 0.38 (91) 1.96 (55) 2.16 (52) 4.45 (62) 11/01/2000 Total Domestic Fixed Policy 1.80 (11) 1.80 (11) 0.92 (52) 1.72 (81) 2.09 (62) 4.42 (66) IM U.S. Intermediate Duration (SA+CF) Median 1.39 1.39 0.95 1.99 2.16 4.50 Total Global FI -1.26 (90) -1.26 (90) N/A N/A N/A -0.17 (25) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) -0.19 (65) -0.19 (65) -0.81 (33) 4.08 (13) 3.71 (1) 0.34 (16) IM Global Fixed Income (MF) Median 0.33 0.33 -1.76 2.68 1.27 -3.22 Total Real Estate _ 2.06 (29) 2.06 (29) 9.95 (23) 9.66 (31) 11.37 (37) 6= (24) 10/01/2007 NCREIF Fund Index-ODCE (VVV) 1.76 (61) 1.76 (61) 8.35 (63) 8.24 (70) 10.41 (65) 5.40 11 IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 1.80 8.71 8.66 10.82 5.51 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 December 31, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Vanguard Total Stock Market (VITSX) -14.26 (46) -14.26 (46) -5.16 (26) 8.99 (10) 7.91 (12) 10.90 (14) 03/01/2013 Vanguard Total Stock Market Index Hybrid -14.26 (46) -14.26 (46) -5.17 (27) 9.00 (10) 7.92 (11) 10.92 (13) IM U.S. Multi -Cap Core Equity (MF) Median -14.38 -14.38 -7.20 7.04 5.85 9.26 RBC Global (Voyageur) -14.08 (73) -14.08 (73) -12.83 (30) 6.03 (19) 3.26 (17) 3.31 (12) 11/01/2007 MSCI EAFE Index -12.50 (44) -12.50 (44) -13.36 (38) 3.38 (57) 1.00 (51) 0.36 (73) IM International Large Cap Value Equity (SA+CF) Median -12.88 -12.88 -14.64 3.66 1.03 1.29 Galliard Core Fixed Income 1.51 (36) 1.51 (36) 0.95 (51) 2.04 (43) 2.41 (30) 3.61 (70) 10/01/2007 Bloomberg Barclays Intermed Aggregate Index 1.80 (11) 1.80 (11) 0.92 (52) 1.72 (81) 2.09 (62) 3.48 IM U.S. Intermediate Duration (SA+CF) Median 1.39 1.39 0.95 1.99 2.16 3.78 Galliard TIPS -0.08 (23) -0.08 (23) -0.25 (19) 1.88 (91) 1.29 (77) 2.87 (97) 10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year -0.05 (7) -0.05 (7) -0.25 (20) 1.87 (91) 1.20 (94) 2.92 (96) IM U.S. TIPS (SA+CF) Median -0.42 -0.42 -1.20 2.17 1.70 3.53 Vanguard Inflation -Protected Secs (VAIPX) -0.50 (30) -0.50 (30) -1.44 (45) N/A N/A 0.71 (27) 01/01/2017 Bloomberg Barclays U.S. TIPS Index -0.42 (24) -0.42 (24) -1.26 (35) 2.11 (23) 1.69 (7) 0.85 (15) IM U.S. TIPS (MF) Median -0.84 -0.84 -1.59 1.68 0.91 0.47 Vanguard Short Term Bond Index (VSCSX) 0.97 (44) 0.97 (44) 0.88 (41) 1.98 (25) N/A 1.79 (15) 01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index 0.76 (54) 0.76 (54) 0.95 (34) 2.12 (18) 1.94 (10) 1.90 (9) IM U.S. Intermediate Investment Grade (MF) Median 0.80 0.80 0.73 1.45 1.39 1.22 PIMCO Diversified Income Fund Instl (PDIIX) -1.26 (90) -1.26 (90) N/A N/A N/A -0.17 (25) 04/01/2018 Blmbg. Barc. Global Credit (Hedged) -0.19 (65) -0.19 (65) -0.81 (33) 4.08 (13) 3.71 (1) 0.34 (16) IM Global Fixed Income (MF) Median 0.33 0.33 -1.76 2.68 1.27 -3.22 American Core Realty Fund 1.94 (35) 1.94 (35) 8.72 (50) 7.96 (74) 10.14 (69) 5.14 (84) 10/01/2007 American Core Realty Policy 1.62 (76) 1.62 (76) 8.25 (66) 8.44 (52) 10.52 (63) 7.21 (4) IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 1.80 8.71 8.66 10.82 5.51 Intercontinental 2.14 (25) 2.14 (25) 10.74 (15) 10.85 (21) 12.22 (26) 13.81 (33) 10/01/2010 NCREIF Fund Index-ODCE 1.76 (61) 1.76 (61) 8.35 (63) 8.24 (70) 10.41 (65) 11.89 (75) IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 1.80 8.71 8.66 10.82 12.69 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 December 31, 2018 Comparative Performance - IRR QTR 1 YR 3 YR 6 YR Inception Inception Date Crescent Direct Lending Fund 0.00 6.64 8.64 N/A 7.66 10/14/2014 Crescent Direct Lending II Fund 0.00 N/A N/A N/A 6.15 03/13/2018 20 Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2018 Comparative Performance Fiscal Year Returns FYTD Oct -2017 To Sep -2018 Oct -2016 To Sep -2017 Oct -2016 To Sep -2016 Oct -2014 To Sep -2016 Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Oct -2008 To Sep -2009 Total Fund (Net) -9.47 (82) 11.34 (9) 14.16 (16) 11.16 (10) 0.33 (31) 11.86 (14) 16.72 (7) 18.96 (28) -1.17 (81) 10.67 (31) 0.70 (66) Total Fund Policy -8.53 (56) 9.81 (22) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (24) 15.00 (12) 19.61 (19) 2.51 (11) 9.13 (73) 0.33 (69) All Public Plans -Total Fund Median -8.32 8.14 12.19 9.66 -0.45 10.24 12.51 17.94 0.29 9.90 1.60 Total Fund (New Mgrs) (Net) -9.47 (82) 11.34 (9) 14.16 (15) 11.15 (10) 0.33 (31) 11.85 (14) 15.72 (7) 18.95 (28) -1.17 (81) 10.66 (31) 0.68 (65) Total Fund Policy -8.53 (56) 9.81 (22) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (24) 15.00 (12) 19.61 (19) 2.51 (11) 9.13 (73) 0.33 (69) All Public Plans -Total Fund Median -8.32 8.14 12.19 9.66 -0.45 10.24 12.51 17.94 0.29 9.90 1.60 Total Fund (Gross) -9.37 (80) 11.69 (7) 14.62 (11) 11.61 (7) 0.63 (26) 12.21 (9) 16.33 (6) 19.81 (16) -0.46 (68) 11.40 (19) 1.43 (62) Total Fund Policy -8.53 (56) 9.81 (22) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (24) 15.00 (12) 19.61 (19) 2.51 (11) 9.13 (73) 0.33 (69) All Public Plans -Total Fund Median -8.32 8.14 12.19 9.66 -0.45 10.24 12.51 17.94 0.29 9.90 1.60 Total Fund (New Mgrs) (Gross) -9.37 (80) 11.69 (7) 14.52 (11) 11.51 (7) 0.63 (26) 12.21 (9) 16.33 (6) 19.81 (16) -0.45 (68) 11.40 (19) 1.39 (53) Total Fund Policy -8.53 (56) 9.81 (22) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (24) 15.00 (12) 19.61 (19) 2.51 (11) 9.13 (73) 0.33 (69) All Public Plans -Total Fund Median -8.32 8.14 12.19 9.66 -0.45 10.24 12.51 17.94 0.29 9.90 1.60 Total Equity 16.01 11111111001MMWW -1.62 W 16.46 W 23.09IM27.08 0-4.68 * 13.61 Total Equity Policy -13.87 14.18 19.00 13.13 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 Total Domestic Equity -14.26 (60) 17.88 (41) 18.64 (52) 15.21 (25) -0.59 (63) 17.58 (69) 21.85 (34) 27.76 (61) -3.30 (90) 14.19 (9) -4.29 (38) Total Domestic Equity Policy -14.30 (61) 17.58 (47) 18.71 (51) 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 -13.83 17.33 18.74 13.26 0.09 19.21 20.71 29.63 1.16 9.53 -5.79 Total International Equity -14.08 (73) 6.76 (5) 22.69 (35) 10.74 (29) -4.36 (19) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (19) MSCI EAFE Index -12.50 (44) 3.25 (28) 19.65 (54) 7.06 (61) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) -8.94 (55) 3.71 (65) 3.80 (65) IM International Large Cap Value Equity (SA+CF) Median -12.88 1.47 20.68 8.39 -9.40 5.75 22.93 15.42 -8.62 4.99 6.39 Total Fixed Income 0.40 2.69 3.69 4.93 1.40 3. 6.34 "M 4.67 0 9.27 10.63 Total Fixed Policy 1.80 -0.93 0.25 3.57 2.95 2.74 -0.71 4.22 7.52 9.69 Total Domestic Fixed Income 0.94 (84) -0.21 (35) 0.61 (60) 4.21 (30) 2.31 (72) 2.61 (63) -1.30 (95) 5.88 (43) 4.67 (13) 9.27 (22) 10.53 (70) Total Domestic Fixed Policy 1.80 (11) -0.93 (96) 0.25 (87) 3.57 (73) 2.95 (31) 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 1.39 -0.37 0.69 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 11.53 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 1.75 (10) -1.54 (55) -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 0.33 -1.24 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 13.54 Total Global FI -1.26 (90) 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) -0.19 (65) 0.39 (18) 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 0.33 -1.24 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 December 31, 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 -2016 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 FYTD To To To To To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Total Real Estate 2.06 (29) 10.26 (26) 10.01 (19) 11.44 (49) 14.27 (67) 13.47 (38) 16.42 (19) 12.81 (64) 16.82 (72) 2.71 (77) -32.42 (32) NCREIF Fund Index-ODCE 1.76 (61) 8.68 (63) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (43) 6.97 (43) -35.19 (49) IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 9.04 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 Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2018 Oct -2017 Oct -2016 Oct -2016 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 FYTD To To To To To To To To To To Sep -2018 Sep -2017 Sep -2016 Sep -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Lateef Asset Mgmt.Equity 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) Russell 1000 Growth Index -15.89 (62) 26.30 (37) 21.94 (37) 13.76 (23) 3.17 (55) 19.15 (40) 19.27 (63) 29.19 (39) 3.78 (30) 12.65 (35) -1.85 (37) IM U.S. Large Cap Growth Equity (SA+CF) Median -15.14 24.42 20.81 11.64 3.60 18.18 20.25 27.65 1.38 11.27 -2.98 RBC Global (Voyageur) -14.08 (73) 6.76 (5) 22.69 (35) 10.74 (29) -4.36 (19) 10.08 (8) 27.54 (18) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (19) MSCI EAFE Index -12.50 (44) 3.25 (28) 19.65 (54) 7.06 (61) -8.27 (42) 4.70 (63) 24.29 (41) 14.33 (56) -8.94 (55) 3.71 (65) 3.80 (65) IM International Large Cap Value Equity (SA+CF) Median -12.88 1.47 20.68 8.39 -9.40 5.75 22.93 15.42 -8.62 4.99 6.39 Vanguard Total Stock Market (VITSX) -14.26 (46) 17.62 (18) 18.64 (37) 15.00 (16) -0.59 (35) 17.77 (31) N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid -14.26 (46) 17.62 (19) 18.64 (37) 14.99 (16) -0.55 (34) 17.77 (31) 21.60 (59) 30.28 (16) 0.71 (27) 11.16 (26) -6.03 (53) IM U.S. Multi -Cap Core Equity (MF) Median -14.38 14.56 17.48 11.72 -1.79 16.35 22.72 26.92 -1.49 9.32 -5.75 Galliard Core Fixed Income 1.51 (36) -0.43 (58) 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) Bloomberg Barclays Intermed Aggregate Index 1.80 (11) -0.93 (96) 0.25 (87) 3.57 (73) 2.95 (31) 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 1.39 -0.37 0.69 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 11.53 Galliard TIPS -0.08 0.39 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 Blmbg. Barc. U.S. TIPS 1-10 Year -0.05 0.33 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 Templeton Global Bond Fund (FBNRX) N/A N/A N/A 0.83 -7.63 6.33 3.54 N/A N/A N/A N/A FTSE World Government Bond Index 1.75 -1.54 -2.69 9.71 -3.83 -0.07 -4.60 3.29 4.61 4.99 13.78 PIMCO Diversified Income Fund Instl (PDIIX) -1.26 (90) 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) -0.19 (65) 0.39 (18) 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 0.33 -1.24 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 13.54 Vanguard Inflation -Protected Secs (VAIPX) -0.50 (30) 0.23 (55) N/A N/A N/A N/A N/A N/A N/A N/A N/A Bloomberg Barclays U.S. TIPS Index -0.42 (24) 0.41 (40) -0.73 (61) 6.58 (27) -0.83 (7) 1.59 (19) -6.10 (46) 9.10 (19) 9.87 (6) 8.89 (43) 5.67 (41) IM U.S. TIPS (MF) Median -0.84 0.29 -0.43 5.77 -1.90 0.95 -6.17 8.21 8.10 8.72 5.16 Vanguard Short Term Bond Index (VSCSX) 0.97 (44) -0.14 (41) 1.55 (27) 3.40 (20) N/A N/A N/A N/A N/A N/A N/A Blmbg. Barc. U.S. Corporate 1-5 Year Index 0.76 (54) 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) IM U.S. Intermediate Investment Grade (MF) Median 0.80 -0.38 0.85 2.56 1.21 1.64 -0.52 4.93 1.99 7.52 10.46 American Core Realty Fund 1.94 (35) 8.50 (66) 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) American Core Realty Policy 1.62 (76) 8.82 (59) 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) IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 9.04 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 -35.32 Intercontinental 2.14 (25) 11.40 (8) 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 NCREIF Fund Index-ODCE 1.76 (61) 8.68 (63) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) 11.61 (67) 18.27 (43) 6.97 (43) -35.19 (49) IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 9.04 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 11.00 (7) 14.52 (11) 11.51 8.00 0.63 (26) 12.21 (9) 16.33 (6) O (22) 12.89 (36) 10.64 O 5.00 (27) 11.38 (24) 15.00 2.00 Median 8.14 12.19 -1.00 E 2.57 (7) -0.45 10.24 12.51 OO -4.00 2.07 (21) -0.57 (71) 4.07 (26) 3.48 (45) 2.80 (59) -7.00 1.43 -0.27 3.71 • O 2.93 I-10.00 -13.00 -16.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio -9.37 (80) -9.37 (80) -3.18 (28) 6.26 (15) 7.47 (5) 6.12 (3) 6.30 (4) • Total Fund Policy -8.53 (56) -8.53 (56) -3.48 (34) 5.60 (28) 6.43 (26) 5.29 (14) 5.78 (12) Median -8.32 -8.32 -4.35 4.92 5.77 4.22 4.77 Comparative Performance Performance Review Total Fund Portfolio As of December 31. 2018 20.00 17.00 O O 14.00 O 11.00 O 8.00 c 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 11.69 (7) 14.52 (11) 11.51 (7) 0.63 (26) 12.21 (9) 16.33 (6) • Total Fund Policy 9.81 (22) 12.89 (36) 10.64 (20) 0.55 (27) 11.38 (24) 15.00 (12) Median 8.14 12.19 9.66 2.57 (7) -0.45 10.24 12.51 2.80 (59) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Total Fund Portfolio 4.32 (9) 2.57 (7) -0.15 (41) 4.54 (8) 3.83 (22) 2.80 (59) Total Fund Policy 3.96 (17) 2.07 (21) -0.57 (71) 4.07 (26) 3.48 (45) 2.80 (59) All Public Plans -Total Fund Median 3.09 1.43 -0.27 3.71 3.43 2.93 24 3 Yr Rolling Under/Over Performance - 5 Years 20.0 r Over Performance 0 16.0 o u 0 0 EL 12.0 Oo v c O 00 8.0 0 4.0 4.0 8.0 12.0 Total Fund Policy (%) eOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 8.25 7.70 7.15 «' 6.60 O K 6.05 5.50 6.27 6.46 6.65 6.84 7.03 Risk (Standard Deviation %) Return Performance Review Total Fund Portfolio As of December 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 7.47 7.38 y 0.0 O088889"999ee880000 6.67 O Total Fund Policy 6.43 6.73 O Total Fund Policy 5.78 6.22 Median 5.83 O O w 25.0 6.10 Historical Statistics - 3 Years 0 c v a 50.0 Tracking Up Down c 75.0 Downside Error WL Market Alpha .� K Ratio Beta Risk Capture Capture 100.0 Total Fund Portfolio 1.01 112.29 104.70 0.44 Under 0.87 1.09 5.41 Total Fund Policy 0.00 100.00 100.00 0.00 Performance 0.80 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 16.0 20.0 5-25 25 -Median Median -75 75-95 Information Sharpe Total Period Count Count Count Count 0 7.22 7.41 7.60 Standard Deviation O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scattergram - 5 Years 6.76 6.24 5.72 O w 5.20 K 4.68 4.16 6.0 6.2 20(100%) 0 (0%) 0 (0%) 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) u 6.4 6.6 Risk (Standard Deviation %) Return Standard Deviation 6.8 • Total Fund Portfolio 7.47 7.38 O Total Fund Portfolio 6.30 6.67 O Total Fund Policy 6.43 6.73 O Total Fund Policy 5.78 6.22 Median 5.83 6.42 Median 4.73 6.10 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.01 112.29 104.70 0.44 1.02 0.87 1.09 5.41 Total Fund Policy 0.00 100.00 100.00 0.00 0.80 1.00 4.93 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 0.93 108.04 106.07 0.15 0.57 0.85 1.06 4.71 Total Fund Policy 0.00 100.00 100.00 0.83 1.00 4.36 25 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 20.00 15.00 10.00 5.00 0.00 v K -5.00 -10.00 -15.00 -20.00 -25.00 00 00 0 E M QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Vanguard Total Stock Market (VITSX) 4.26 (46) 4.26 (46) -5.16 (26) 7.20 (23) 8.99 (10) 6.78 (11) 7.91 (12) • Vanguard Total Stock Market Index Hybrid 4.26 (46) 4.26 (46) -5.17 (27) 7.20 (23) 9.00 (10) 6.78 (11) 7.92 (11) Median 4.38 4.38 -7.20 5.54 7.04 4.75 5.85 Comparative Performance Performance Review Vanguard Total Stock Market (VITSX) As of December 31, 2018 44.00 36.00 28.00 20.00 12.00 v 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 (18)3.64 (37)5.00 (16)).59 (35)7.77 (31) N/A • Vanguard Total Stock Market Index Hybrid 7.62 (19)3.64 (37)3.99 (16)).55 (34)7.77 (31)1.60 (59) Median 3.56 7.48 1.72 1.79 3.35 2.72 O 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Vanguard Total Stock Market (VITSX) 7.09 (23) 3.91 (19) -0.60 (49) 6.34 (42) 4.54 (43) 3.03 (44) Vanguard Total Stock Market Index Hybrid 7.08 (24) 3.91 (18) -0.60 (49) 6.34 (41) 4.55 (43) 3.04 (44) IM U.S. Multi -Cap Core Equity (MF) Median 5.83 2.66 -0.61 6.07 4.35 2.94 O 3 3 Yr Rolling Under/Over Performance - 5 Years rn 21.0 Over > Performance 18.0 A 15.0 U 0 dJ 12.0 A 0 � 9.0 v A 6.0 I I 1 6.0 9.0 12.0 15.0 Vanguard Total Stock Market Index Hybrid (%) • Under Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 9.60 r 8.96 - 0 8.32 «' 7.68 v K 6.40 1 1 1 11.15 11.20 11.25 11.30 11.35 Risk (Standard Deviation %) Return Under Performance I 18.0 21.0 Performance Review Vanguard Total Stock Market (VITSX) As of December 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O Vanguard Total Stock Market Index Hybrid 9.00 11.19 • Vanguard Total Stock Market Index Hybrid 7.92 11.06 Median 7.04 11.41 Median 5.85 11.36 Historical Statistics - 3 Years Downside 0000000000 Error Market Market Alpha Q Ratio Beta Risk w 25.0 Q O O Capture O 000 Vanguard Total Stock Market (VITSX) 0.03 99.96 `w 50.0 - O 0.74 1.00 8.07 a 75.0 100.00 100.00 N/A 0.74 1.00 8.08 v K 100.0 Tracking Up Down 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 Error Total 5-25 25 -Median Median -75 75-95 Ratio Beta Period Count Count Count Count lb Vanguard Total Stock Market (VITSX) 12 • Vanguard Total Stock Market Index Hybrid 20 Peer Group Scattergram - 5 Years 8.84 8.16 7.48 «' 6.80 v K 6.12 11 (92%) 1 (8%) 0 (0%) 0 (0%) 11 (55%) 9(45%) 0 (0%) 0 (0%) 1 5.44 1 1 1 11.40 11.45 10.99 11.06 11.13 11.20 11.27 11.34 11.41 11.48 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Vanguard Total Stock Market (VITSX) 8.99 11.19 • Vanguard Total Stock Market (VITSX) 7.91 11.07 O Vanguard Total Stock Market Index Hybrid 9.00 11.19 • Vanguard Total Stock Market Index Hybrid 7.92 11.06 Median 7.04 11.41 Median 5.85 11.36 Historical Statistics - 3 Years Vanguard Total Stock Market (VITSX) 0.03 99.96 99.99 -0.01 -0.19 0.69 1.00 7.40 Vanguard Total Stock Market Index Hybrid 100.00 100.00 0.69 1.00 7.40 27 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 99.97 -0.01 -0.15 0.74 1.00 8.07 Vanguard Total Stock Market Index Hybrid 100.00 100.00 N/A 0.74 1.00 8.08 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 99.99 -0.01 -0.19 0.69 1.00 7.40 Vanguard Total Stock Market Index Hybrid 100.00 100.00 0.69 1.00 7.40 27 Performance Review RBC Global (Voyageur) As of December 31. 2018 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) 15.00 44.00 10.00 36.00 Q 5.00 Q Q Q 28.00 - Q Q Q 0.00 20.00 -5.00 12.00 • • -10.00 4.00 • _ -15.00 -4.00 • • -20.00 -12.00 ■ -25.00 -20.00 -30.00 -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) -14.08 (73) -14.08 (73) -12.83 (30) 5.64 (17) 6.03 (19) 4.85 (15) 3.26 (17) O RBC Global (Voyageur) 6.76 (5) 22.69 (35) 10.74 (29) -4.36 (19) 10.08 (8) 27.54 (18) • MSCI EAFE Index -12.50 (44) -12.50 (44) -13.36 (38) 4.32 (35) 3.38 (57) 2.42 (48) 1.00 (51) O MSCI EAFE Index 3.25 (28) 19.65 (54) 7.06 (61) -8.27 (42) 4.70 (63) 24.29 (41) Median -12.88 -12.88 -14.64 3.70 3.66 2.34 1.03 Median 1.47 20.68 8.39 -9.40 5.75 22.93 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 RBC Global (Voyageur) 1.54 (30) 1.35 (3) -1.41 (58) 5.22 (27) 6.53 (31) 6.27 (44) MSCI EAFE Index 1.42 (33) -0.97 (17) -1.41 (58) 4.27 (51) 5.47 (57) 6.37 (41) IM International Large Cap Value Equity (SA+CF) Median 0.88 -2.19 -1.26 4.27 5.64 6.01 28 3 Yr Rolling Under/Over Performance - 5 Years 32.0 Over Performance 24.0 v , 16.0 ° > O 0 8.0 W o0 0 CK 0 O U" U 0.0 m K -8.0 -8.0 0.0 8.0 16.0 MSCI EAFE Index (%) • Over Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 7.36 6.44 5.52 «' 4.60 v K 3.68 2.76 1 1 10.92 11.18 11.44 11.70 11.96 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of December 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 6.03 12.45 O RBC Global (Voyageur) 3.26 y 0.0 0•• O MSCI EAFE Index e 0 0 p p 11.27 O O MSCI EAFE Index 1.00 11.70 Median 3.66 11.61 0 O O O 11.80 Historical Statistics - 3 Years p00 p v 25.0 Information p O p Error Market U Alpha O 00 p 0 O Beta Risk Capture 0 0 v 50.0-0 p O RBC Global (Voyageur) 4.34 p 00 96.92 O a 0.45 1.04 8.96 MSCI EAFE Index o 00 O r 75.0 - 8.05 Historical Statistics - 5 Years K Tracking Up Down Information Sharpe Under 100.0 Market Market Alpha Ratio �r Beta Risk Performance 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 1 24.0 32.0 5-25 25 -Median Median -75 75-95 Total Period Count Count Count Count u 12.22 12.48 Standard Deviation 0 RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scattergram - 5 Years 4.00 3.20 2.40 «' 1.60 v K 0.80 0.00 1 1 1 12.74 11.52 11.70 11.88 12.06 12.24 12.42 12.60 Risk (Standard Deviation %) Return Standard Deviation 17 (85%) 3 (15%) 0 (0%) 0 (0%) 0 (0%) 8 (40%) 12 (60%) 0 (0%) u 12.78 • RBC Global (Voyageur) 6.03 12.45 O RBC Global (Voyageur) 3.26 12.50 O MSCI EAFE Index 3.38 11.27 O MSCI EAFE Index 1.00 11.70 Median 3.66 11.61 Median 1.03 11.80 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.34 112.66 96.92 2.57 0.62 0.45 1.04 8.96 MSCI EAFE Index 100.00 - 1.00 8.05 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.47 108.00 93.86 2.34 0.52 0.27 1.00 8.46 MSCI EAFE Index .0 100.00 100.00 1 1.00 8.21 ORA 3 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 3.96 3.50 3.04 2.58 2.12 «' 1.66 K 1.20 0.74 0.28 -0.18 -0.64 0 a I Comparative Performance 8.00 6.00 4.00 Ir 2.00 K 0.00 i mop -2.00 Performance Review Galliard Core Fixed Inc As of December 31. 2018 -4.00 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 • Galliard Core Fixed Inc -0.43 (58) 0.44 (72) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) • Barclays Int Agg Index -0.93 (96) 0.25 (87) 3.57 (73) 2.95 (31) 2.74 (58) -0.71 (77) Median -0.37 0.69 3.90 2.70 2.88 -0.27 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 1.51 (36) 1.51 (36) 0.95 (51) 1.84 (36) 2.04 (43) 1.94 (36) 2.41 (30) • Barclays Int Agg Index 1.80 (11) 1.80 (11) 0.92 (52) 1.59 (80) 1.72 (81) 1.59 (84) 2.09 (62) Median 1.39 1.39 0.95 1.75 1.99 1.83 2.16 Comparative Performance 8.00 6.00 4.00 Ir 2.00 K 0.00 i mop -2.00 Performance Review Galliard Core Fixed Inc As of December 31. 2018 -4.00 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 • Galliard Core Fixed Inc -0.43 (58) 0.44 (72) 4.36 (26) 3.04 (26) 3.15 (38) -0.64 (74) • Barclays Int Agg Index -0.93 (96) 0.25 (87) 3.57 (73) 2.95 (31) 2.74 (58) -0.71 (77) Median -0.37 0.69 3.90 2.70 2.88 -0.27 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Galliard Core Fixed Inc 0.30 (65) 0.05 (74) -0.90 (54) 0.11 (31) 0.79 (34) 1.03 (43) Barclays Int Agg Index 0.11 (95) 0.09 (61) -1.05 (83) -0.07 (77) 0.72 (49) 0.92 (73) IM U.S. Intermediate Duration (SA+CF) Median 0.37 0.12 -0.90 0.01 0.72 1.01 W 3 3 Yr Rolling Under/Over Performance - 5 Years s.o Over Performance 4.0 v X 3.0 LL O o� 00 2.0 O 0 o f0 1.0 A C7 0.0 1 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 2.20 Performance Review Galliard Core Fixed Inc As of December 31. 2018 E 1.80 O 1.60 1.88 1.92 1.96 2.00 2.04 2.08 2.12 Risk (Standard Deviation %) Return Standard Deviation 2.16 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 2.60 2.40 2.20 2.00 1 1.89 1.92 1.95 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) X 1 1 1.98 2.01 2.04 2.07 2.10 Risk (Standard Deviation %) Return Standard Deviation • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 2.06 • Galliard Core Fixed Inc 2.41 / y K 0.0 1.72 2.12 • Barclays Int Agg Index 2.09 v 25.00 1.99 000000000000 Median 2.16 1.92 Historical Statistics - 3 Years Op p 50.0- 00 Op 000000 Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta EL E 75.0 p O O 16 Capture p p p -� O O v K Galliard Core Fixed Inc 0.30 103.02 89.77 0.38 1.07 O Under 1.25 100.0 T- r 0.00 1 Performance 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 5.0 Tracking Up 5-25 25 -Median Median -75 75-95 Downside Error Total Period Count Count Count Count E 1.80 O 1.60 1.88 1.92 1.96 2.00 2.04 2.08 2.12 Risk (Standard Deviation %) Return Standard Deviation 2.16 0 Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scattergram - 5 Years 2.60 2.40 2.20 2.00 1 1.89 1.92 1.95 0 (0%) 20(100%) 0 (0%) 0 (0%) 0 (0%) 1 (5%) 11 (55%) 8 (40%) X 1 1 1.98 2.01 2.04 2.07 2.10 Risk (Standard Deviation %) Return Standard Deviation • Galliard Core Fixed Inc 2.04 2.06 • Galliard Core Fixed Inc 2.41 2.05 • Barclays Int Agg Index 1.72 2.12 • Barclays Int Agg Index 2.09 2.03 Median 1.99 1.95 Median 2.16 1.92 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.30 103.02 89.77 0.38 1.07 0.51 0.96 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 0.31 104.18 91.53 0.32 1.00 0.87 1.00 1.09 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 ca Peer Group Analysis - IM U.S. TIPS (SA+CF) 4.34 3.60 2.86 2.12 1.38 «' 0.64 K -0.10 00 • O 00 -0.84 -1.58 -2.32 -3.06 11.00 8.00 5.00 2.00 v K -1.00 -4.00 -7.00 -10.00 Performance Review Galliard TIPS As of December 31. 2018 MAIIIIIINE 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 -0.08 (23) -0.08 (23) -0.25 (19) 0.96 (37) 1.88 (91) 1.40 (24) 1.29 (77) • 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 -0.05 (7) -0.05 (7) -0.25 (20) 0.82 (88) 1.87 (91) 1.27 (61) 1.20 (94) C 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 -0.42 -0.42 -1.20 0.93 2.17 1.30 1.70 Median 0.43 -0.52 6.53 -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 Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Galliard TIPS -0.40 (19) 0.63 (81) -0.39 (18) 0.55 (89) 0.70 (90) -0.50 (92) Barclays US TIPS 1-10 Yr -0.42 (23) 0.61 (86) -0.40 (18) 0.53 (92) 0.70 (90) -0.40 (75) IM U.S. TIPS (SA+CF) Median -0.77 0.76 -0.73 1.26 0.89 -0.37 32 3 Yr Rolling Under/Over Performance - 5 Years 4.0 Over -- Performance 2.0 a_ ~ 0.0 v A � -2.0 -4.0 1 1 -4.0 -2.0 0.0 Barclays US TIPS 1-10 Yr (%) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.40 2.20 Performance Review Galliard TIPS As of December 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 1.88 2.41 y 0.0 1.29 2.96 O Barclays US TIPS 1-10 Yr A 2.32 • Barclays US TIPS 1-10 Yr w 25.0 O O O 2.73 Median 2.17 c 3.05 Median 1.70 v 50.0 -� O 3.52 Historical Statistics - 3 Years EL" O 75.0 Q Q O - Under w t) O e O Information Sharpe _ n 8 O O 8 Performance 1 100.0 � � Error Market 1 Alpha 2.0 4.0 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 5-25 25 -Median Median -75 75-95 Total Period Galliard TIPS 0.43 99.94 Count Count Count Count E 2.00 O 1.80 1 2.20 2.40 2.60 2.80 3.00 3.20 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1-10 Yr 20 Peer Group Scattergram - 5 Years 1.80 is 1.60 1.40 1.20 O 1.00 1 2.55 2.70 2.85 2 (10%) 2 (10%) 6 (30%) 10 (50%) 2 (10%) 0 (0%) 2 (10%) 16 (80%) Ll 1 1 1 3.00 3.15 3.30 Risk (Standard Deviation %) Return 3.45 3.60 Standard Deviation 3.75 • Galliard TIPS 1.88 2.41 • Galliard TIPS 1.29 2.96 O Barclays US TIPS 1-10 Yr 1.87 2.32 • Barclays US TIPS 1-10 Yr 1.20 2.73 Median 2.17 3.05 Median 1.70 3.52 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.43 99.94 99.25 -0.03 0.04 0.37 1.02 1.37 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 0.77 100.40 97.40 0.04 0.13 0.24 1.05 1.68 Barclays US TIPS 1-10 Yr 100.00 100.00 1.00 33 3 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 3.84 3.25 2.66 2.07 O C' O 1.48 0.89 v K 0.30 -0.29 -0.88 -1.47 -2.06 0 Edi Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of December 31. 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) 0.97 (44) 0.97 (44) 0.88 (41) 1.57 (28) 1.98 (25) 1.79 (15) N/A • Barclays US Corp 1-5 Yr Index 0.76 (54) 0.76 (54) 0.95 (34) 1.75 (15) 2.12 (18) 1.90 (9) 1.94 (10) Median 0.80 0.80 0.73 1.21 1.45 1.22 1.39 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of December 31. 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 Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 VG ST Bond Index (VSCSX) 0.67 (15) 0.28 (21) -1.03 (91) -0.05 (38) 0.66 (24) 0.89 (16) Barclays US Corp 1-5 Yr Index 0.71 (8) 0.29 (21) -0.80 (65) -0.09 (43) 0.76 (13) 0.93 (13) IM U.S. Intermediate Investment Grade (MF) Median 0.34 0.12 -0.72 -0.13 0.53 0.69 34 3 Peer Group Analysis - IM U.S. TIPS (MF) 6.00 4.00 2.00 0.00 -2.00 -4.00 -6.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Vanguard Inflation -Protected Secs (VAIPX) .0.50 (30) .0.50 (30) -1.44 (45) 0.71 (27) N/A N/A N/A O Bloomberg Barclays U.S. TIPS Index .0.42 (24) .0.42 (24) -1.26 (35) 0.85 (15) 2.11 (23) 1.21 (16) 1.69 (7) Median .0.84 .0.84 -1.59 0.47 1.68 0.76 0.91 Comparative Performance Performance Review Vanguard Inflation -Protected Secs (VAIPX) As of December 31. 2018 14.00 11.00 8.00 5.00 2.00 v 00 -1.00 -4.00 7.00 -10.00 -13.00 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 O Vanguard Inflation -Protected Secs (VAIPX) ).23 (55) N/A N/A N/A N/A N/A O Bloomberg Barclays U.S. TIPS Index ).41 (40)).73 (61)3.58 (27)).83 (7) 1.59 (19)3.10 (46) Median ).29 ).43 3.77 1.90 ).95 3.17 35 3 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Vanguard Inflation -Protected Secs (VAIPX) -0.79 (58) 0.84 (19) -0.99 (76) 1.19 (44) 0.79 (49) -0.49 (49) Bloomberg Barclays U.S. TIPS Index -0.82 (60) 0.77 (27) -0.79 (54) 1.26 (31) 0.86 (34) -0.40 (27) IM U.S. TIPS (MF) Median -0.72 0.63 -0.75 1.11 0.79 -0.50 35 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 December 31. 2018 16.00 12.00 C+ 8.00 4.00 c v 0.00 K -4.00 -8.00 -12.00 3 ' L -16.00 -8.00 1 1 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) 1.26 (90) 1.26 (90) 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) 0.19 (65) 0.19 (65) 0.81 (33) 2.48 (43) 4.08 (13) 2.99 (3) 3.71 (1) O Blmbg. Barc. Global Credit (Hedged) ).39 (18)3.04 (27)).19 (25)).86 (18)i.83 (9) 1.46(8) Median 0.33 0.33 1.76 2.28 2.68 1.13 1.27 Median 1.24 1.02 1.42 5.85 5.37 1.81 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 PIMCO Diversified Income Fund Instl (PDIIX) 2.03 (2) -0.92 (33) N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged) 0.98 (9) -0.44 (14) -1.15 (96) 1.02 (19) 1.44 (61) 1.79 (66) IM Global Fixed Income (MF) Median -0.39 -2.25 0.77 0.67 1.59 2.30 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 r 8.00 K 5.00 -1.00 -4.00 .d 0 O0 0 O C' . Comparative Performance 26.00 23.00 20.00 17.00 14.00 - K 11.00 8.00 - • 5.00 2.00 r Performance Review American Core RE As of December 31. 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 (66) 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) O American Core RE Policy 8.82 (59) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) Median 9.04 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 1.94 (35) 1.94 (35) 8.72 (50) 8.40 (50) 7.96 (74) 9.77 (69) 10.14 (69) • American Core RE Policy 1.62 (76) 1.62 (76) 8.25 (66) 8.02 (57) 8.44 (52) 10.08 (57) 10.52 (63) Median 1.80 1.80 8.71 8.39 8.66 10.36 10.82 Comparative Performance 26.00 23.00 20.00 17.00 14.00 - K 11.00 8.00 - • 5.00 2.00 r Performance Review American Core RE As of December 31. 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 (66) 7.52 (67) 9.04 (97) 13.98 (69) 12.49 (64) 12.27 (70) O American Core RE Policy 8.82 (59) 7.81 (60) 10.62 (69) 14.71 (62) 12.39 (68) 12.47 (67) Median 9.04 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 Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 American Core RE 2.19 (47) 2.09 (66) 2.23 (45) 1.73 (87) 1.88 (42) 1.97 (39) American Core RE Policy 2.09 (54) 2.13 (61) 2.17 (55) 2.15 (57) 1.89 (42) 1.71 (67) IM U.S. Open End Private Real Estate (SA+CF) Median 2.10 2.22 2.21 2.25 1.75 1.89 37 3 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over Performance .�.�. 14.0 W K v 12.0 •+ 1. 10.0 • • U . . E 8.0 6.0 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 9.00 A 7n Performance Review American Core RE As of December 31. 2018 3 Yr Rolling Percentile Ranking - 5 Years 7.96 0.78 • American Core RE 10.14 y 0.0 O American Core RE Policy 8.44 0.45 • American Core RE Policy 10.52 A K 1.36 Median 8.66 0.97 Median 10.82 w 25.0 Historical Statistics - 3 Years c v 50.0 - Tracking Up O 00 Information Sharpe a Downside Error Market Market Alpha Ratio 00 X75.0 °ee8e80000a Capture Capture 0000 O! K American Core RE 0.89 94.57 N/A 7.35 -0.50 8.78 Under 100.0 r T r I r r r 10.67 Performance 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 1 Tracking Up Down Information Sharpe 14.0 16.0 Downside 5-25 Market 25 -Median Median -75 75-95 Ratio Beta Total Period Count Count Count Count 8.40 v 8.10 7.80 1 1 1 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Risk (Standard Deviation %) Return Standard Deviation 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scattergram - 5 Years 11.10 10.80 10.50 Q v 10.20 9 90 0 (0%) 0 (0%) 8 (40%) 12 (60%) 0 (0%) 0 (0%) 19 (95%) 1 (5%) 1 1.10 1.28 1.36 1.44 1.52 1.60 Risk (Standard Deviation %) Return • 1.68 1.76 Standard Deviation 1.84 • American Core RE 7.96 0.78 • American Core RE 10.14 1.66 O American Core RE Policy 8.44 0.45 • American Core RE Policy 10.52 1.36 Median 8.66 0.97 Median 10.82 1.75 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 0.89 94.57 N/A 7.35 -0.50 8.78 0.07 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 10.67 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 96.55 N/A 0.31 -0.33 5.00 0.93 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 1.00 0.00 38 3 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) 20.00 17.00 14.00 11.00 Q Q jW 8.00 Q Q 0 K 5.00 - 2.00 - -1.00 - -4.00 1 1 1 1 Qtr 1 Qtr 1 Ending QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 2.14 (25) 2.14 (25) 10.74 (15) 9.71 (25) 10.85 (21) 11.81 (26) 12.22 (26) • NCREIF Fund Index 1.76 (61) 1.76 (61) 8.35 (63) 7.98 (59) 8.24 (70) 9.90 (63) 10.41 (65) Median 1.80 1.80 8.71 8.39 8.66 10.36 10.82 Comparative Performance 26.00 23.00 20.00 17.00 14.00 11.00 8.00 5.00 2.00 Performance Review Intercontinental As of December 31. 2018 • -1.00 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 • Intercontinental 11.40 (8) 11.82 (7) 13.30 (23) 13.96 (69) 14.10 (30) 18.21 (10) • NCREIF Fund Index 8.68 (63) 7.66 (62) 10.08 (83) 14.93 (61) 12.40 (68) 13.04 (53) Median 9.04 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 Sep -2018 Jun -2018 Mar -2018 Dec -2017 Sep -2017 Jun -2017 Intercontinental 2.52 (23) 2.89 (27) 2.79 (14) 2.75 (14) 2.53 (13) 1.43 (88) NCREIF Fund Index 2.09 (54) 2.05 (67) 2.20 (52) 2.07 (68) 1.87 (43) 1.70 (67) IM U.S. Open End Private Real Estate (SA+CF) Median 2.10 2.22 2.21 2.25 1.75 1.89 KE 3 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over Performance c 15.0 v 060 r00 0 o 0 0 r 12.0 • • c M U (A 9.0 6.0 1 6.0 9.0 12.0 NCREIF Fund Index (%) • Over Performance + Earliest Date X Latest Date Peer Group Scattergram - 3 Years 11.57 10.68 9.79 «' 8.90 8.01 O 7.12 1 1 -0.50 0.00 0.50 1.00 1.50 Risk (Standard Deviation %) Return Performance Review Intercontinental As of December 31. 2018 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 2.34 • Intercontinental 12.22 y 0.0 • NCREIF Fund Index 8.24 0.34 O NCREIF Fund Index 10.41 A v 25.0 0oee000 1.36 000000000 8.66 0.97 Median 10.82 00 0 Historical Statistics - 3 Years 50.0 - 0 Tracking Up Down O O O O O O O O O O O 000000 Downside Error Market E 75.0 O O O Ratio Beta Risk O Capture K 130.73 N/A -8.04 1.09 3.94 Under 100.0 NCREIF Fund Index 100.00 N/A 0.00 N/A Performance 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 12/18 1 Tracking Up Down 15.0 18.0 Total Period 5-25 25 -Median Median -75 75-95 Market Market Count Count Count Count Risk • Intercontinental 20 8 (40%) 12 (60%) 0(0%) 0 (0%) • NCREIF Fund Index 20 0 (0%) 0 (0%) 20(100%) 0 (0%) Peer Group Scattergram - 5 Years 12.60 O O ^11.97 11.34 v 10.71 0 10.08 1 1 2.00 2.50 3.00 1.04 1.30 1.56 1.82 2.08 2.34 2.60 2.86 3.12 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Intercontinental 10.85 2.34 • Intercontinental 12.22 2.71 • NCREIF Fund Index 8.24 0.34 O NCREIF Fund Index 10.41 1.36 Median 8.66 0.97 Median 10.82 1.75 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.25 130.73 N/A -8.04 1.09 3.94 2.34 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 2.52 116.83 N/A 4.14 0.67 3.94 0.76 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 40 Private Equity Fund Overview Crescent Direct Lending Fund As of December 31, 2018 Fund Information $2,000,000 Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower -middle -market companies. The Fund will seek to Total Distributions: enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Capital Committed: $2,000,000 Capital Invested: $2,955,307 Management Fees: $25,271 Expenses: $211,372 Interest: - Total Contributions: $2,955,307 Remaining Capital Commitment: $282,673 Total Distributions: $1,966,987 Market Value: $1,359,942 Inception Date: 10/14/2014 Inception IRR: 7.6 NPI: 1.1 Cash Flow Analysis $3,900,000.0 $3,120,000.0 $2,340,000.0 $1,560,000.0 $780,000.0 $0.0 ($780,000.0) - 10/14 4/15 10/15 4/16 10/16 4/17 Net Asset Value Distribution Contributions 41 10/17 4/18 10/1812/18 Private Equity Fund Overview Crescent Direct Lending II Fund As of December 31, 2018 Fund Information Type of Fund: Direct Vintage Year: 2017 Strategy Type: Other Management Fee: 75.% of invested equity capital Size of Fund: 1,500,000,000 Preferred Return: 7.00% Inception: 09/27/2017 General Partner: Crescent Direct Lending II GP, LLC Final Close: Number of Funds: Investment Strategy: Crescent Direct Lending Levered Fund II intends to invest in directly originated senior secured loans (including primarily first lien and unitranche loans and to a lesser extent second lien loans) of private U.S. lower -middle -market companies, primarily in conjunction with private equity investment firms. Cash Flow Summary Cash Flow Analysis Capital Committed: $2,000,000 $920,000.0 Capital Invested: $739,209 Management Fees: $3,348 Expenses: $15,431 $690,000.0 Interest: - Total Contributions: $739,209 Remaining Capital Commitment: $1,302,715 $460,000.0 Total Distributions: $53,432 Market Value: $716,454 $230,000.0 Inception Date: 03/13/2018 Inception IRR: 6.1 NPI: 1.0 $0.0 ($230,000.0) 3/18 6/18 42 NN Net Asset Value Distribution Contributions 12/18 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 December 31, 2018 Total Equity Policy ht (%) Allocation Mandate Weight (%) 43 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 43 Compliance Checklist Total Fund Winter Springs GE As of December 31, 2018 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher.— 0.41 of bonds is rated BB, since this is below the threshold of 1. marked in compliance Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. Manager Compliance: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down-market capture ratio less than the index. 44 Yes No NIA Yes No NIA Vanguard Total RBC Global Galliard TIPS VG Short BD Yes No NIA Yes No NIA Yes No NIA Yes No NIA American RE Intercontinental PIMCO Vanguard Infl-prot Yes No NIA Yes No NIA Yes No NIA Yes No NIA Winter Springs General Employees General Plan and Trust Fee Analysis As of December 31, 2018 Receipt & Disbursement 896,624 - Total Fund 0.40 48,030,374 193,285 45 3 Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 23,240,343 9,296 0.04 % of Assets Total Domestic Equity 0.04 23,240,343 9,296 RBC Global (Voyageur) 0.95 7,647,079 72,647 0.95 % of Assets Total International Equity 0.96 7,647,079 72,647 Galliard Core Fixed Income 0.25 4,777,469 11,944 0.25 % of Assets Galliard TIPS 0.15 1,212,270 1,818 0.15 % of Assets Vanguard Inflation -Protected Secs (VAIPX) 0.10 985,053 985 0.10 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 16,937 20 0.12 % of Assets Total Domestic Fixed Income 0.21 6,991,729 14,767 PIMCO Diversified Income Fund Instl (PDIIX) 0.75 1,748,164 13,111 0.75 % of Assets Total Global FI 0.76 1,748,164 13,111 Crescent Direct Lending Fund 1.35 1,359,942 18,359 1.35 % of Assets Crescent Direct Lending II Fund 0.75 716,454 5,373 0.75 % of Assets Total Other Fixed Income 1.14 2,076,396 23,733 Intercontinental 1.10 3,354,259 36,897 1.10 % of Assets American Core Realty Fund 1.10 2,075,780 22,834 1.10 % of Assets Total Real Estate 1.10 6,430,039 69,730 Receipt & Disbursement 896,624 - Total Fund 0.40 48,030,374 193,285 45 3 Disclosures Total Fund As of December 31, 2018 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. 46 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. 47 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. 48 Putting clients first. AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom n