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2019 11 14 Board of Trustees Regular Meeting Agenda
BOARD OF TRUSTEES | REGULAR MEETING | THURSDAY, NOVEMBER 14, 2019 | PAGE 1 OF 2 BOARD OF TRUSTEES REGULAR MEETING AGENDA THURSDAY, NOVEMBER 14, 2019 AT 5:30 PM CITY HALL - COMMISSION CHAMBERS 1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA CALL TO ORDER Roll Call Invocation Pledge Of Allegiance Approval Of The Agenda AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA 200. Not Used PUBLIC INPUT Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a “Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City Commission. CONSENT AGENDA 300. Minutes From The Thursday, August 8, 2019 Board Of Trustees Regular Meeting Attachments: Minutes PUBLIC HEARINGS AGENDA 400. Not Used BOARD OF TRUSTEES | REGULAR MEETING | THURSDAY, NOVEMBER 14, 2019 | PAGE 2 OF 2 REGULAR AGENDA 500. Quarterly Investment Return Report From AndCo Consulting Attachments: Year End - Fourth Quarter Investment Return Report 501. Investment Advisor Cost Analysis Attachments AndCo Consulting PFM Asset Management REPORTS PUBLIC INPUT Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a “Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City Commission. ADJOURNMENT PUBLIC NOTICE This is a Public Meeting, and the public is invited to attend and this Agenda is subject to change. Please be advised that one (1) or more Members of any of the City's Advisory Boards and Committees may be in attendance at this Meeting, and may participate in discussions. Persons with disabilities needing assistance to participate in any of these proceedings should contact the City of Winter Springs at (407) 327-1800 "at least 48 hours prior to meeting, a written request by a physically handicapped person to attend the meeting, directed to the chairperson or director of such board, commission, agency, or authority" - per Section 286.26 Florida Statutes. “If a person decides to appeal any decision made by the board, agency, or commission with respect to any matter considered at such meeting or hearing, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based” - per Section 286.0105 Florida Statutes. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING AUGUST 8, 2019 CALL TO ORDER The Regular Meeting of Thursday, August 8, 2019 of the Board of Trustees was called to Order at 5:32 p.m. in the Commission Chambers (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson David Withee, present Vice-Chairperson Barbara Watkins, present Board Member Michael S. Blake, present Board Member Steven Krohn, present Board Member Robin Paris, present City Clerk Andrea Lorenzo-Luaces, present A moment of silence was held in recognition of the recent mass shootings. The Pledge of Allegiance followed. Regarding the Agenda, Interim City Manager Shawn Boyle asked, “If the Board and the Chairman will entertain a general discussion on continuing Professional Services, Investment Services for the Board of Trustees, we’d like to add that as a Regular Agenda Item. Chairperson Withee asked, “Does the Board have any objection to adding that?” Board Member Michael S. Blake stated, “No objection.” Vice-Chairperson Barbara Watkins and other Board Members added, “No.” Chairperson Withee summarized, “No objection noted, let us go ahead and add that to the Regular Agenda.” AWARDS AND PRESENTATIONS 100. NOT USED CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 2 OF 8 AGENDA NOTE: THE AGENDA WAS DISCUSSED IN THE ORDER AS DOCUMENTED. PUBLIC INPUT Chairperson Withee opened “Public Input”. No one spoke. Chairperson Withee closed “Public Input”. CONSENT AGENDA 300. Minutes From The Wednesday, June 12, 2019 (Rescheduled From May 9, 2019) Board Of Trustees Regular Meeting Related to the June 12, 2019 Board of Trustees Regular Meeting Minutes, Chairperson Withee said, “Can I get a Motion from the Board then and a Second to approve those Minutes?” “MOVE FOR APPROVAL.” MOTION BY BOARD MEMBER BLAKE. SECONDED BOARD MEMBER KROHN. DISCUSSION. VOTE: BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE BOARD MEMBER BLAKE: AYE BOARD MEMBER PARIS: AYE VICE-CHAIRPERSON WATKINS: AYE MOTION CARRIED. INFORMATIONAL AGENDA 200. Retirement of Larry Wilson Interim Manager Boyle advised the Board that Mr. Larry Wilson, Senior Consultant and Actuary with Gabriel, Roeder, Smith & Company (GRS) had retired. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 3 OF 8 Continuing, Interim Manager Boyle noted that Ms. Jennifer Borregard, Consultant, Gabriel, Roeder, Smith & Company (GRS), an associate of Mr. Wilson’s would be our new representative. Interim Manager Boyle added that in addition to working with Mr. Wilson, he had also worked with Ms. Borregard so there were no gaps. Board Member Blake asked Interim Manager Boyle about the status of the Agreement and when the last time it had been negotiated. Interim Manager Boyle explained this agreement included an evergreen clause and added, “The contract contains – basically a CPI escalator in it so it’s been minimal – the escalations that we incurred.” Brief remarks followed on other Actuaries with Gabriel, Roeder, Smith & Company (GRS). It was then agreed that further comments on the Actuarial Contract would be discussed during Agenda Item “501”. PUBLIC HEARINGS AGENDA 400. NOT USED REGULAR AGENDA 500. Quarterly Investment Return Report From AndCo Consulting Mr. John Thinnes, CFA, Senior Consultant, AndCo Consulting, 4901 Vineland Road, Suite 600, Orlando, Florida: reviewed with the Board various aspects of the Quarterly Investment Return Report to include interest rates, negative and positive yields, Continuing his presentation, Mr. Thinnes noted that Mr. Dave West with AndCo Consulting had asked him to relay to the Board that, “Pretty much for the rest of this fiscal year, staying put with our allocations – we’re not out of range according to your IPS (Investment Policy Statement).” Furthermore, Mr. Thinnes added, “The game plan through 9/30 is to - stick with this plan and then reevaluate and during that reevaluation, it might be a good time to just get everything back to center.” Comments continued. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 4 OF 8 Chairperson Withee asked about the current underperformance was to which Mr. Thinnes said it was related to health care stocks for this quarter. Continuing, Mr. Thinnes mentioned that PIMCO was the most aggressive fixed income manager, and comments followed on the terms of the fund. Next, Mr. Thinnes said, “I think for me, the overall themes here are that - for the quarter - and then longer, the Managers are all performing within expectations and then longer term, three (3) and five (5) year numbers, just second and first percentile are pretty compelling.” Comments followed on the PIMCO Diversified Income Fund. Chairperson Withee inquired, “Is there anything that were to happen economically, you would suggest trimming that position or eliminating it?” Mr. Thinnes responded, “No, it’s a long term strategic plan, and like I said, it’s only three and half percent (3 ½%) of the fund. I think we need to have risk in the Portfolio. That is a great fund that long term it’s going to add tremendous value.” Mr. Thinnes summarized, “No recommendation to change that fund at all.” Further remarks ensued. Chairperson Withee stated, “With no recommendations for changes to the Portfolio, can I get a Motion from the Board to approve the presentation as given.” “SO MOVED.” MOTION BY BOARD MEMBER PARIS. SECONDED BY VICE- CHAIRPERSON WATKINS. DISCUSSION. VOTE: BOARD MEMBER BLAKE: AYE VICE-CHAIRPERSON WATKINS: AYE BOARD MEMBER PARIS: AYE BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE MOTION CARRIED. 501. 2018 Annual Actuarial Valuation Report From Gabriel, Roeder, Smith & Company Ms. Michelle “Shelley” Jones, ASA, EA, FCA, MAAA, Consultant, Gabriel, Roeder, Smith & Company, One East Broward Boulevard., Suite 505 Ft. Lauderdale, Florida: addressed the Board via telephone. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 5 OF 8 Continuing, Ms. Jones remarked, “Our Valuation Report as of October 1st, 2018 and essentially it determines the contribution that will be made for the next year, which is October 1st, 2019 through September 30th, 2020 and it also has some accounting information. It also - satisfies some State requirements that need to be reported - over 140 data items need to go to the State, and so we will do that for you if it’s approved.” Ms. Jones continued with her report and spoke of contribution dollar amounts, plan members, and pointed out, “Essentially, there were no changes to the Plan provisions during the year, so benefits weren’t being calculated any differently. The assumptions were no different than the prior year, so we did not change anything in terms of what we assumed to happen; and then the only thing that really changed and the only reason why the payment is lower this year is because of experience, and the fact that you contributed more than the minimum required for the prior year.” Ms. Jones spoke of unfunded accrued liability, experience assumptions, smooth values, assets, investment returns, total Pension liability, projected numbers, gains and losses, as well as unfunded amounts. While further reviewing the report with the Board, Ms. Jones noted, “If the Valuation is accepted today, we will go ahead and we will upload those data items and then we will perform the compliance report.” Discussion followed on unfunded liability, funding methods, and calculating Seminole County’s contribution for Firefighters. Interim Manager Boyle noted that currently there were five (5) former Winter Springs Firefighters on the Plan. Remarks ensued. Board Member Steven Krohn asked if he could send general questions to Ms. Jones. Interim Manager Boyle suggested that any questions be sent to Interim Manager Boyle or Ms. Queen, to which Staff would provide answers to questions and would then send the information to all Board Members so everyone was kept informed. Ms. Jones added, “We will answer your questions, however it may be.” Assumptions were discussed next and pages 45, 47, and 49 were referenced. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 6 OF 8 Board Member Blake spoke of the two million two hundred and eighty-seven thousand, two hundred and thirty-nine dollars ($2,287,239.00) and asked if that amount was tied into any other part of the report. Ms. Jones noted that “Because it’s part of the unfunded, it moved – because the total moved.” Ms. Jones, added, “The base amount changed.” Board Member Blake suggested that Interim Manager Boyle could provide more information on how that number was tied in. With further remarks, mortality tables were addressed next, to which Ms. Jones said the State was expected to provide an update soon. Board Member Blake thought revised numbers might have an impact. Chairperson Withee asked for a Motion to “Accept this Report as provided by Ms. Jones.” “MOVE FOR APPROVAL.” MOTION BY BOARD MEMBER BLAKE. SECONDED BY BOARD MEMBER KROHN. DISCUSSION. VOTE: BOARD MEMBER PARIS: AYE BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE VICE-CHAIRPERSON WATKINS: AYE BOARD MEMBER BLAKE: AYE MOTION CARRIED. Regarding advisor changes, Ms. Jones commented on Mr. Wilson’s retirement, and added that Ms. Borregard or herself or any of their associates could be contacted for assistance. The telephone call with Ms. Jones ended at approximately 6:48 p.m. 501. Discussion On Investment Rate Assumption Reduction (Also Noted As “501” on the Agenda) Interim Manager Boyle addressed wanting to make the Plan more viable, and suggested to the Board that they consider a “25 basis point (bps) reduction down to 7.5.” CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 7 OF 8 Continuing, Interim Manager Boyle then commented on the Plan, budget requirements, and referenced a 2016 Actuarial study which he said he would resend out, especially for the newer Board Members. Interim Manager Boyle added that he would like to see this plan going forward, in the range of 7 or down to 6.75. With further discussion, Mr. Thinnes said he would support this suggested change. Interim Manager Boyle said that this would be a recommendation to the City Commission, and comments followed on funding levels, and that lowering the rate would help with sustainability. Discussion. Regarding whether the rate could be lowered by 50 basis points, Interim Manager Boyle mentioned that he could return next quarter with an analysis on 50 basis points. “I WOULD LIKE TO MAKE A MOTION THAT THE PENSION COMMITTEE RECOMMENDS THAT THE CITY COMMISSION REDUCE THE ASSUMED RATE OF RETURN FROM 7.75 PERCENT TO 7.5 PERCENT WITH CONSIDERATION THAT THE BOARD WOULD SUPPORT A REDUCTION DOWN TO 7.25 PERCENT.” MOTION BY BOARD MEMBER BLAKE. SECONDED BY CHAIRPERSON WITHEE. DISCUSSION. VOTE: VICE-CHAIRPERSON WATKINS: AYE BOARD MEMBER BLAKE: AYE BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE BOARD MEMBER PARIS: AYE MOTION CARRIED. ADD-ON General Discussion On Investment Services Ms. Holly Queen, CPA, MBA, Controller, Finance Department addressed the Board and explained, “Currently, our contract is up with AndCo [Consulting]. We pay them twenty-six thousand dollars ($26,000.00) a year for their services. Just general direction on whether you - would like us to go out for bids, look at other proposals for other companies. We looked at them several years ago, about three (3) years ago and they were a little bit higher than what we’re currently paying AndCo. [Consulting].” CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 8, 2019 PAGE 8 OF 8 Discussion followed on whether to go out to the marketplace and come back with recommendations as documented for the record, AndCo. Consulting’s position in the market, business decisions, and tax dollars. Interim Manager Boyle explained, “We’re required to get three (3) quotes. Would you like presentations from these groups so that you guys are comfortable – with the three (3) firms that we bring in?” Chairperson Withee stated, “I am more than confident in your ability to evaluate those options without having to take Board time to do that.” Board Member Blake remarked, “I don’t disagree.” Board Member Krohn added, “I am on board. I agree.” No objections were voiced. REPORTS No Reports were given. PUBLIC INPUT Chairperson Withee opened “Public Input”. No one addressed the Board. Chairperson Withee closed “Public Input”. ADJOURNMENT The Meeting was adjourned by Chairperson Withee at 7:19 p.m. RESPECTFULLY SUBMITTED: _____________________________________ ANDREA LORENZO-LUACES CITY CLERK NOTE: These Minutes were Approved at the ____________________________, 2019 Board of Trustees Regular Meeting. <CBDoc TenantId="2" EntityTypeId="3100" EntityId=”190" DocumentTypeId="1" EffectiveDate="09/30/2019" Interval="3" Description="Quarterly Report" /> Investment Performance Review Period Ending September 30, 2019 Winter Springs General Employees Plan and Trust 3rd Quarter 2019 Market Environment 1 Broad asset class returns were mixed during the 3rd quarter of 2019 with both US large cap equity and fixed income indices extending their year-to-date gains while US small cap and international indices declined. Volatility was high during the period as investors weighed the effects of ongoing trade disruption and slowing global economic data against the announcement of several new central bank stimulus measures. US stocks continued their year-to-date outperformance relative to international stocks during the period. US markets faced headwinds from continued escalation in the ongoing trade dispute with China, slowing economic data, particularly with regards to manufacturing, and political uncertainty following a late quarter impeachment inquiry against President Donald Trump. However, markets were supported by easing monetary policy from the Federal Reserve (Fed) which cut interest rates twice during the period. In general, lower risk assets performed better through the period as investors weighed the increased risk of a recession. Within domestic equity markets, large cap stocks outperformed small cap equities during the quarter with the S&P 500 Index returning 1.7% versus a -2.4% return on the small cap Russell 2000 Index. US equity returns over the 1-year period were positive for large and mid-cap stocks, returning 4.3% and 3.2% respectively, but small cap stocks posted a loss, falling -8.9%. International markets posted negative returns for the 3rd quarter. Similar to US markets, international returns were impacted by continued weakness in economic data, heightened geopolitical uncertainly around global trade and Brexit and newly announced stimulus measures from global central banks including the European Central Bank (ECB) and Peoples Bank of China (PBoC). International returns also faced headwinds from a strengthening US dollar (USD) which appreciated against most major currencies during the period. Developed markets continued their outperformance relative to emerging markets during the period with the MSCI EAFE Index falling -1.1% versus a -4.2% decline for the MSCI Emerging Markets Index. Both developing and emerging markets posted slight losses over the 1-year period, returning -1.3% and -2.0% respectively. Fixed income returns outperformed equities during the 3rd quarter as investors looked for relative safety amid the equity market volatility. The broad market Bloomberg Barclays Aggregate Index gained 2.3% as interest rates fell following central bank stimulus from the Fed and other global central banks. The US Treasury Yield Curve also inverted in August, contributing to growing concern around the potential for an upcoming recession. Investment grade corporate issues were the best performing securities for the third quarter in a row, returning 3.0%, outperforming Treasury and securitized issues. Corporate issues benefitted from their relatively high duration and yield. The bond market has meaningfully outperformed the equity market over the trailing 1-year period with the Bloomberg Barclays Aggregate posting a solid 10.3% return. Source: Investment Metrics The Market Environment Major Market Index Performance As of September 30, 2019 0.6% 3.0% 1.4% 1.3% 2.4% 2.3% -2.4% 0.5% 1.4% 1.2% 1.7% -4.2% -1.1% -1.8% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 3-Month T-Bill Bbg Barclays Corp IG Bbg Barclays MBS Bbg Barclays US TIPS Bbg Barclays US Govt Bbg Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS Quarter Performance 2.4% 13.0% 7.8% 7.1% 10.4% 10.3% -8.9% 3.2% 3.9% 2.9% 4.3% -2.0% -1.3% -1.2% -10.0% -5.0%0.0%5.0%10.0% 15.0% 3-Month T-Bill Bbg Barclays Corp IG Bbg Barclays MBS Bbg Barclays US TIPS Bbg Barclays US Govt Bbg Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS 1-Year Performance 2 Source: Investment Metrics The Market Environment Domestic Equity Style Index Performance As of September 30, 2019 US equity returns were modestly positive during the 3rd quarter, but results varied considerably across the style and capitalization spectrum. Data released during the quarter showed signs that the US economy could be slowing down. Weakening metrics around manufacturing and sentiment were particularly concerning and employment, typically a bright spot for the US economy, missed expectations for the pace of new jobs and hours worked. A likely contributor to the softening economic data is the ongoing trade war between the US and China. Despite last quarter’s agreement to cease escalations following a meeting between President Trump and President Jinping at the G20 summit, the 3rd quarter saw the announcement and implementation of a series of new tariffs from both the US and China. Additionally, in response to new tariffs, the PBoC allowed the yuan to depreciate to its lowest level since 2008 leading US Treasury officials to accuse China of currency manipulation. Even with the apparent breakdown in relations between the two sides, both China and the US agreed to continue negotiations set to take place in October. Markets also reacted to the late quarter announcement of a formal impeachment inquiry against President Trump following a whistle blower report alleging that President Trump pressured the government of Ukraine to investigate the son of political opponent Joe Biden. Despite these substantial headwinds, the US equity market found support from Fed easing of monetary policy in the form of two separate interest rate cuts and ended the period with a gain. The Russell 3000 Index returned 1.2% and 2.9% for the quarter and 1-year period respectively. During the quarter, higher market cap stocks outperformed lower market cap stocks across the style spectrum. The large cap Russell 1000 Index gained 1.4% during the period versus a -2.4% return for the small cap Russell 2000 Index. Investors may have been attracted to large cap names as a result of the quarter’s volatility as large cap stocks are typically viewed as less risky than their small cap counterparts. When viewed over the most recent 1-year period, large cap stocks significantly outperformed small cap stocks with the Russell 1000 posting a 3.9% gain while the while the Russell 2000 had considerable losses, declining -8.9%. In general, value stocks outperformed growth stocks during the 3rd quarter as investors gravitated toward the relative safety these securities typically provide. However, large cap growth stocks slightly outperformed large cap value stocks due to favorable holdings in the technology and industrials sectors as well as a large underweight to the underperforming energy sector. The Russell 1000 Growth Index was the best performing style index for the period, returning 1.5%, with the small cap growth index posting the lowest relative return, a loss of -4.2%. Results over the 1-year period are mixed with value stocks outperforming in large and small cap and growth stocks outperforming in mid- cap. -4.2% -2.4% -0.6% -0.7% 0.5% 1.2% 1.5% 1.4% 1.4% 1.1% 1.2% 1.2% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value Quarter Performance - Russell Style Series -9.6% -8.9% -8.2% 5.2% 3.2% 1.6% 3.7% 3.9% 4.0% 2.7% 2.9% 3.1% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value 1-Year Performance - Russell Style Series 3 Sector performance was mixed across large cap sectors for the 3rd quarter. There were gains for eight out of eleven sectors within the Russell 1000 Index during the period with six sectors outpacing the return of the index. Defensive sectors such as utilities, real estate and consumer staples were the best performers through the quarter returning 8.3%, 7.8% and 5.9% respectively as investors looked toward these sectors for their higher yields and lower historical volatility. Energy, health care and materials stocks were the worst performers during the period. Energy stocks fell -6.9% as crude oil prices fell during the period despite a sharp upward spike in September following a terrorist attack in Saudi Arabia that temporarily reduced the country’s oil production, causing a large disruption in supply. Health care stocks also lagged, declining -2.8%, as discussions in Washington around the potential for increased regulation on drug pricing acted as a headwind. Health care reform has also been a major topic of discussion among candidates for the 2020 US Presidential election, creating additional uncertainty within the sector. Materials returned -0.2% as demand concerns weighed on the economically sensitive sector. Returns over the 1-year period were also generally positive with eight out of eleven sectors posting gains. Similar to the quarter’s results, defensive sectors outperformed by a considerable margin. Utilities, real estate and consumer staples performed well returning 26.3%, 22.1% and 16.0% respectively. Technology returns were also strong gaining 8.2%. Energy, health care and materials were the only sectors to post negative results over the 1-year period with energy falling -21.4%, health care dropping -4.0% and materials returning -0.2%. Quarterly results for small cap sectors were worse than their large capitalization counterparts with all eleven sectors trailing their corresponding large cap equivalents. Five of eleven economic sectors produced gains during the period with seven of eleven sectors outpacing the Russell 2000 Index return for the quarter. Similar to large caps, defensive sectors performed well as investors gravitated toward their relative safety and higher yields. Utilities were the best performers, returning 5.4% followed closely by REITs and consumer staples which returned 5.1% and 4.3% respectively. The cyclically oriented energy sector was the largest detractor for the period, posting a loss of -20.6%. Health care and communication services stocks also experienced notable declines, falling -9.2% and -8.2% respectively. Over the trailing 1-year period, returns were broadly negative. Utilities, real estate and technology were the only sectors to post gains returning 20.1% 7.3% and 6.1%. The energy sector was an outlier in terms of negative returns dropping -48.8% during the period. There were also notable losses in health care, communication services and materials which declined -21.4%, -19.4% and - 18.7% respectively. The Market Environment GICS Sector Performance & (Sector Weight) As of September 30, 2019 Source: Morningstar Direct As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector. 26.3% 22.1% -0.2% 8.2% 1.1% -4.0% 4.1% -21.4% 16.0% 1.8% 5.6% 8.3% 7.8% -0.2% 2.6% 0.8% -2.8% 2.1% -6.9% 5.9% 0.5% 2.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Utilities (3.2%) Real Estate (3.8%) Materials (2.9%) Info Technology (22.0%) Industrials (9.7%) Health Care (13.7%) Financials (13.2%) Energy (4.5%) Consumer Staples (6.8%) Consumer Disc (10.4%) Comm Services (9.8%) Russell 1000 Quarter 1-Year 20.1% 7.3% -18.7% 6.1% -5.3% -21.4% -5.2% -48.8% -6.0% -9.8% -19.4% 5.4% 5.1% -5.5% 1.0% -0.4% -9.2% -0.5% -20.6% 4.3% 0.5% -8.2% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Utilities (4.0%) Real Estate (7.7%) Materials (3.8%) Info Technology (14.2%) Industrials (15.7%) Health Care (16.3%) Financials (17.9%) Energy (3.4%) Consumer Staples (2.9%) Consumer Disc (11.3%) Comm Services (2.7%) Russell 2000 Quarter 1-Year 4 The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of September 30, 2019 Source: Morningstar Direct Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Microsoft Corp 3.82% 4.1% 22.9% Information Technology NovoCure Ltd 0.34% 18.3% 42.7% Health Care Apple Inc 3.68% 13.6% 0.8% Information Technology Haemonetics Corp 0.33% 4.8% 10.1% Health Care Amazon.com Inc 2.61% -8.3% -13.3% Consumer Discretionary Trex Co Inc 0.28% 26.8% 18.1% Industrials Facebook Inc A 1.55% -7.7% 8.3% Communication Services Science Applications International 0.27% 1.3% 10.4% Information Technology Berkshire Hathaway Inc B 1.48% -2.4% -2.8% Financials Portland General Electric Co 0.26% 4.8% 27.2% Utilities JPMorgan Chase & Co 1.36% 6.0% 7.4% Financials ONE Gas Inc 0.26% 7.0% 19.5% Utilities Alphabet Inc Class C 1.35% 12.8% 2.1% Communication Services First Industrial Realty Trust Inc 0.26% 8.3% 29.3% Real Estate Alphabet Inc A 1.33% 12.8% 1.2% Communication Services Southwest Gas Holdings Inc 0.26% 2.2% 18.2% Utilities Johnson & Johnson 1.25% -6.4% -3.8% Health Care Maximus Inc 0.25% 6.9% 20.4% Information Technology Procter & Gamble Co 1.12% 14.2% 54.0% Consumer Staples Teladoc Health Inc 0.25% 2.0% -21.6% Health Care Top 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Insulet Corp 0.04% 38.2% 55.7% Health Care NextCure Inc 0.00% 105.9% N/A Health Care CyrusOne Inc 0.03% 37.9% 28.8% Real Estate Dova Pharmaceuticals Inc 0.01% 98.2% 33.3% Health Care KLA Corp 0.09% 35.7% 61.1% Information Technology WW International Inc 0.09% 98.0% -47.5% Consumer Discretionary New York Community Bancorp Inc 0.02% 27.6% 28.7% Financials R.R.Donnelley & Sons Co 0.01% 94.7% -27.6% Industrials Entegris Inc 0.02% 26.3% 63.9% Information Technology Infinera Corp 0.05% 87.3% -25.3% Information Technology Pilgrims Pride Corp 0.01% 26.2% 77.1% Consumer Staples Lannett Co Inc 0.02% 84.8% 135.8% Health Care Western Digital Corp 0.06% 25.4% 5.6% Information Technology Owens & Minor Inc 0.02% 81.6% -64.4% Health Care DocuSign Inc 0.03% 24.6% 17.8% Information Technology Allakos Inc 0.08% 81.5% 74.8% Health Care Target Corp 0.19% 24.4% 24.3% Consumer Discretionary Solid Biosciences Inc 0.01% 79.8% -78.1% Health Care XPO Logistics Inc 0.02% 23.8% -37.3% Industrials Ardelyx Inc 0.01% 74.7% 8.0% Health Care Bottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector 2U Inc 0.00% -56.7% -78.3% Information Technology Tocagen Inc 0.00% -90.1% -95.8% Health Care PG&E Corp 0.02% -56.4% -78.3% Utilities Waitr Holdings Inc Class A 0.00% -79.6% -88.1% Consumer Discretionary Covetrus Inc 0.00% -51.4% N/A Health Care McDermott International Inc 0.02% -79.1% -89.0% Energy Sarepta Therapeutics Inc 0.02% -50.4% -53.4% Health Care Sonim Technologies Inc 0.00% -77.0% N/A Information Technology Nektar Therapeutics Inc 0.01% -48.8% -70.1% Health Care Synlogic Inc 0.00% -74.8% -83.9% Health Care DXC Technology Co 0.03% -46.2% -67.9% Information Technology Mallinckrodt PLC 0.01% -73.7% -91.8% Health Care Antero Resources Corp 0.00% -45.4% -82.9% Energy Clovis Oncology Inc 0.01% -73.6% -86.6% Health Care Range Resources Corp 0.00% -45.0% -77.3% Energy Bloom Energy Corp Class A 0.01% -73.5% -90.5% Industrials Pluralsight Inc Class A 0.00% -44.6% -47.5% Information Technology Chaparral Energy Inc Class A 0.00% -71.5% -92.4% Energy Fluor Corp 0.01% -42.5% -66.1% Industrials Pacific Drilling SA 0.01% -69.3% -99.7% Energy 5 Source: MSCI Global Index Monitor (Returns are Net) Broad international equity returns were negative in USD terms for the 3rd quarter as US investors in international markets faced a meaningful headwind from a USD that strengthened against most major currencies. In local currency terms, developed markets were generally positive while emerging markets posted losses. The MSCI ACWI ex US Index gained 0.7% in local currency terms, but a USD investor experienced a loss of -1.8% due to the currency effect. Similar to US markets, international equity markets balanced headwinds from slowing economic data and concerns around global trade with tailwinds from central bank shifts toward more accommodative policies. Among others, the ECB and PBoC announced new stimulus measures during the quarter. The ECB cut its policy rate and committed to a new quantitative easing program and the PBoC announced new stimulus measures designed to encourage bank lending and reduce borrowing costs as it tries to counteract a cooling economy and the effects of its ongoing trade war with the US. The recent USD strength can also be seen over the 1-year period with USD returns trailing most local currency returns. Returns for the MSCI ACWI ex US Index were 1.3% in local currency terms and -1.2% in USD terms for the trailing year. Results for developed market international indices were generally positive in local currency terms, but negative in USD terms for the 3rd quarter, with the MSCI EAFE Index returning 1.8% and -0.9% respectively. Outside of central bank policy and trade, there were notable developments within the political sphere. In Europe, Christine Lagarde was nominated to succeed Mario Draghi as the head of the ECB. Japanese stocks rose as election results appeared to support continuity for Prime Minister Abe’s ongoing policy efforts. In the UK, pro-Brexit Boris Johnson was appointed to prime minister, replacing Theresa May. The UK continues to face uncertainty around Brexit as its late October deadline to agree to a withdrawal agreement with the European Union (EU) quickly approaches. Stocks in Hong Kong fell as the government dealt with major pro-democracy protests throughout the quarter. The MSCI EAFE Index returned 1.6% and -1.3% for the last twelve months in local currency and USD terms respectively. Emerging markets continued their trend of 2019 underperformance relative to developed markets during the 3rd quarter, posting negative returns in both local currency and USD terms. The MSCI Emerging Markets Index fell -2.1% and -4.2% respectively. As expected, geopolitical tensions around trade continued to put pressure on emerging market stocks. Countries with greater sensitivities to commodity prices or a strong USD tended to underperform during the period. Argentina’s stock market fell -46.8% as primary elections in the country saw the defeat of the country’s current market friendly president. One year returns for the MSCI Emerging Market Index were -0.2% in local currency terms and -2.0% in USD terms. The Market Environment International and Regional Market Index Performance (Country Count) As September 30, 2019 12.9% -2.9% 3.9% -0.2% -4.0% 4.9% 1.6% 1.9% 1.3% 6.7% -3.9% 0.9% -2.0% -2.2% -0.9% -1.3% -1.0% -1.2% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% EM Latin Amer (6) EM Asia (9) EM EMEA (11) Emerging Mkt (26) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (48) 1-Year Performance USD Local Currency 0.9% -2.3% -3.3% -2.1% 1.4% 2.0% 1.8% 1.8% 0.7% -5.6% -3.4% -7.0% -4.2% 0.2% -1.8% -1.1% -0.9% -1.8% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% EM Latin Amer (6) EM Asia (9) EM EMEA (11) Emerging Mkt (26) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (48) Quarter Performance USD Local Currency 6 The Market Environment US Dollar International Index Attribution & Country Detail As of September 30, 2019 Source: Morningstar Direct, MSCI Global Index Monitor (Returns are Net in USD) As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector. MSCI - EAFE Sector Weight Quarter Return 1-Year Return Communication Services 5.4%-0.9%-0.7% Consumer Discretionary 11.5%0.3%-2.0% Consumer Staples 12.0%1.9%6.9% Energy 5.1%-6.5%-14.5% Financials 18.6%-2.6%-6.3% Health Care 11.6%2.4%4.3% Industrials 14.7%-2.0%-2.1% Information Technology 6.7%-0.5%1.8% Materials 7.0%-5.4%-5.7% Real Estate 3.6%-1.3%4.3% Utilities 3.8%2.4%13.2% Total 100.0%-1.1%-1.3% MSCI - ACWIxUS Sector Weight Quarter Return 1-Year Return Communication Services 6.8%-2.9%-1.0% Consumer Discretionary 11.4%-0.7%-1.6% Consumer Staples 10.2%1.5%6.8% Energy 6.7%-4.6%-9.8% Financials 21.6%-3.6%-3.2% Health Care 8.5%1.1%0.9% Industrials 11.9%-2.5%-2.4% Information Technology 8.9%2.2%4.1% Materials 7.3%-6.5%-7.2% Real Estate 3.2%-3.1%5.0% Utilities 3.5%1.3%12.6% Total 100.0%-1.8%-1.2% MSCI - Emerging Mkt Sector Weight Quarter Return 1-Year Return Communication Services 11.6%-5.2%-2.5% Consumer Discretionary 13.1%-3.1%0.1% Consumer Staples 6.9%-0.8%3.0% Energy 7.7%-4.0%-2.3% Financials 24.7%-8.0%1.6% Health Care 2.6%-6.6%-24.2% Industrials 5.4%-5.2%-4.4% Information Technology 15.1%5.6%3.9% Materials 7.3%-10.7%-15.9% Real Estate 2.9%-8.8%6.8% Utilities 2.8%-3.6%7.2% Total 100.0%-4.2%-2.0% MSCI-EAFE MSCI-ACWIxUS Quarter 1- Year Country Weight Weight Return Return Japan 24.6%16.5%3.1%-4.7% United Kingdom 16.4%11.0%-2.5%-2.9% France 11.4%7.6%-1.7%-1.6% Switzerland 9.4%6.3%0.3%12.0% Germany 8.5%5.7%-4.0%-7.1% Australia 7.0%4.7%-1.4%6.1% Netherlands 4.0%2.7%2.4%9.5% Hong Kong 3.5%2.4%-11.9%-1.8% Spain 2.9%2.0%-3.8%-3.5% Sweden 2.6%1.7%-4.8%-8.0% Italy 2.3%1.6%-0.1%3.9% Denmark 1.8%1.2%-1.0%2.3% Singapore 1.3%0.9%-5.8%-0.2% Belgium 1.0%0.7%3.4%-0.8% Finland 1.0%0.7%-1.8%-9.3% Norway 0.7%0.4%-3.4%-13.4% Israel 0.6%0.4%-3.7%-12.5% Ireland 0.5%0.4%-0.6%-4.6% New Zealand 0.2%0.2%-2.9%10.0% Austria 0.2%0.2%-3.1%-16.0% Portugal 0.2%0.1%1.6%-2.5% Total EAFE Countries 100.0%67.0%-1.1%-1.3% Canada 7.0%0.5%3.0% Total Developed Countries 74.0%-0.9%-1.0% China 8.3%-4.7%-3.9% Korea 3.2%-4.5%-13.8% Taiwan 3.0%5.2%-0.2% India 2.3%-5.2%4.7% Brazil 2.0%-4.6%25.4% South Africa 1.2%-12.6%-6.4% Russia 1.0%-1.4%18.0% Thailand 0.8%-6.0%-0.9% Saudi Arabia 0.7%-9.5%4.0% Mexico 0.7%-1.7%-14.8% Indonesia 0.5%-5.2%11.9% Malaysia 0.5%-6.3%-10.4% Philippines 0.3%-4.6%13.1% Poland 0.3%-12.1%-12.2% Qatar 0.3%-0.2%5.0% Chile 0.3%-7.3%-16.8% United Arab Emirates 0.2%-0.2%-0.3% Turkey 0.2%11.7%16.5% Colombia 0.1%-6.1%-7.3% Peru 0.1%-9.3%-4.0% Greece 0.1%-3.1%6.8% Hungary 0.1%-3.9%3.4% Argentina 0.1%-46.8%-32.3% Czech Republic 0.0%-10.1%-12.6% Egypt 0.0%7.4%21.5% Pakistan 0.0%1.1%-32.7% Total Emerging Countries 26.0%-4.2%-2.0% Total ACWIxUS Countries 100.0%-1.8%-1.2% 7 Source: Bloomberg The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of September 30, 2019 Broad fixed income benchmarks continued their trend of 2019 gains during the 3rd quarter. Interest rates fell across the US Treasury Yield Curve through the quarter as the Fed continued to shift toward an easing of monetary policy in an attempt to combat slowing economic data. The Fed cut short-term interest rates twice during the period following their July and September meetings. In addition, it ended its balance sheet reduction plan in September which represents a further easing of monetary policy. After its September meeting, the Fed issued a statement commenting that future changes to monetary policy are not on a preset course and will be evaluated as the Fed receives new information on the state of the economy, but that Fed officials “will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.” The Fed response provided market support in a quarter where we saw the formal inversion of the yield curve. Treasury yields on 2-year issues briefly surpassed the yield on 10-year issues in August. This inversion of the yield curve has historically preceded a recession within the next 6-24 months. However, the magnitude of the inversion was mild and short in duration with rates on the 10- year Treasury rising above the yield of the 2-year by early September. The bellwether Bloomberg Barclays US Aggregate Index posted positive returns for both the 3rd quarter and the 1-year period, returning 2.3% and 10.3% respectively. Within investment grade credit, lower quality issues outperformed higher quality issues during the quarter. Lower quality issues benefitted from their higher durations as interest rates fell during the quarter. On an absolute basis, without negating the duration differences in the sub-indices, Baa rated credit was the best performing investment grade credit quality segment returning 3.3% for the quarter, while AAA was the worst performing, returning 2.0%. High yield issues returned 1.3% for the quarter as these issues did not commensurately benefit from the drop in interest rates due to their relatively low durations. Returns over the 1-year period show lower quality securities outperforming higher quality issues with Baa rated issues returning 13.5% versus a 9.3% return for AAA securities. Investment grade corporates outperformed the more defensive Treasury and mortgage backed sectors of the Bloomberg Barclays US Aggregate Index’s three broad sectors during the 3rd quarter. Investment grade corporate credit returned 3.0%, as they benefitted from their higher sensitivity to interest rates, low credit spreads and high investor demand for yield. When viewed over the 1-year period, corporate credit outperformed both Treasuries and mortgage backed securities. Corporate issues returned 13.0% versus a 7.8% return for mortgages and 10.5% gain on Treasury securities. 0.6% -0.6% 1.4% 2.3% 1.3% 3.0% 1.4% 2.4% 1.3% 3.3% 2.9% 2.6% 2.0% -1.0%0.0%1.0%2.0%3.0%4.0% Multiverse (7.0) Global Agg x US (8.4) Intermediate Agg (3.6) Aggregate (5.8) U.S. TIPS (4.9) U.S. Corporate IG (7.8) U.S. Mortgage (2.7) U.S. Treasury (6.6) U.S. High Yield (3.1) Baa (7.9) A (7.8) AA (6.6) AAA (5.0) Quarter Performance 7.5% 5.3% 8.1% 10.3% 7.1% 13.0% 7.8% 10.5% 6.4%13.5% 12.6% 11.0% 9.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Multiverse (7.0) Global Agg x US (8.4) Intermediate Agg (3.6) Aggregate (5.8) U.S. TIPS (4.9) U.S. Corporate IG (7.8) U.S. Mortgage (2.7) U.S. Treasury (6.6) U.S. High Yield (3.1) Baa (7.9) A (7.8) AA (6.6) AAA (5.0) 1-Year Performance 8 Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) The Market Environment Market Rate & Yield Curve Comparison As of September 30, 2019 Global fixed income returns underperformed their domestic counterparts during the 3rd quarter. These indices have lower, or in some cases (Germany, Japan), negative yields, but have higher durations. Given their higher durations, these issues would be expected to perform relatively well during periods of falling rates, however, the returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. As mentioned, the USD appreciated against most other developed currencies during the quarter, acting as a headwind to global bond indices. The return on global bonds, as represented by the Bloomberg Barclays Global Aggregate ex US Index, was -0.6%. Global bonds also trailed over the 1-year period with the Global Aggregate ex US Index returning 5.3% versus a 10.3% return on the domestically focused Bloomberg Barclays Aggregate Index. As global growth has shown signs of stalling, several international central banks have started to step back from more restrictive postures. The ECB and the PBoC have moved toward an easing of monetary policy and implemented various stimulus programs designed to support their respective economies. 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 over the last year, the 10-year Treasury yield (green line) fell from high’s greater than 3.0%, to yields below 1.5% before ending the quarter at 1.68%. 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 an abrupt increase in credit spreads during the 4th quarter of 2018 as investors moved to higher quality assets during the quarter’s risk-off environment. Subsequently, spreads declined steadily, remaining somewhat range bound with increases in May and August. There was little change through the quarter with spreads tightening by about 1 basis point. Spread tightening is equivalent to an interest rate decrease on corporate bonds, which produces an additional tailwind for corporate bond index returns. The green band across the graph illustrates the decrease in the Federal Funds Rate due to the recent easing in US monetary policy. The rate cuts in July and September have pushed the Fed Funds Rate to 1-year lows. The lower graph provides a snapshot of the US Treasury yield curve at the end of each of the last four calendar quarters. The downward shift in interest rates as well as a general flattening of the yield curve are clearly visible over the last quarter. As mentioned, the yield curve continues to invert as yields on shorter- and middle-term maturities fell less than interest rates at the long-end of the curve. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Treasury Yield Curve 12/31/2018 3/31/2019 6/30/2019 9/30/2019 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 1-Year Trailing Market Rates Fed Funds Rate TED Spread 3-Month Libor BAA OAS 10yr Treasury 10yr TIPS 9 Asset Allocation By Segment as of June 30, 2019 : $53,908,698 Asset Allocation By Segment as of September 30, 2019 : $54,074,045 Allocation Segments Market Value Allocation Domestic Equity 27,588,328 51.2¢ International Equity 8,634,785 16.0¢ Domestic Fixed Income 7,355,456 13.6¢ Global Fixed Income 1,867,102 3.5¢ Other Fixed Income 2,246,733 4.2¢ Real Estate 5,516,132 10.2¢ Cash Equivalent 700,163 1.3¢ Allocation Segments Market Value Allocation Domestic Equity 27,889,255 51.6¢ International Equity 8,419,165 15.6¢ Domestic Fixed Income 7,450,777 13.8¢ Global Fixed Income 1,870,457 3.5¢ Other Fixed Income 2,292,511 4.2¢ Real Estate 5,596,231 10.3¢ Cash Equivalent 555,648 1.0¢ Asset Allocation Summary Total Fund As of September 30, 2019 NONE 10 Asset Allocation By Manager as ofJune 30, 2019 : $53,908,698 Asset Allocation By Manager as ofSeptember 30, 2019 : $54,074,045 Allocation Market Value Allocation Vanguard Total Stock Market (VITSX)27,588,328 51.2¢ RBC Global (Voyageur)8,634,785 16.0¢ Galliard Core Fixed Income 5,025,853 9.3¢ Intercontinental 3,459,853 6.4¢ American Core Realty Fund 2,081,376 3.9¢ PIMCO Diversified Income Fund Instl (PDIIX) 1,872,973 3.5¢ Galliard TIPS 1,274,609 2.4¢ Crescent Direct Lending Fund 1,255,176 2.3¢ Vanguard Inflation-Protected Secs (VAIPX)1,044,777 1.9¢ Crescent Direct Lending II Fund 991,557 1.8¢ Receipt & Disbursement 661,720 1.2¢ Vanguard Short Term Bond Index (VSCSX)17,691 0.0¢ Allocation Market Value Allocation Vanguard Total Stock Market (VITSX)27,889,255 51.6¢ RBC Global (Voyageur)8,419,165 15.6¢ Galliard Core Fixed Income 5,095,727 9.4¢ Intercontinental 3,541,188 6.5¢ American Core Realty Fund 2,080,151 3.8¢ PIMCO Diversified Income Fund Instl (PDIIX) 1,875,993 3.5¢ Galliard TIPS 1,282,666 2.4¢ Crescent Direct Lending Fund 1,171,197 2.2¢ Crescent Direct Lending II Fund 1,121,314 2.1¢ Vanguard Inflation-Protected Secs (VAIPX)1,059,563 2.0¢ Receipt & Disbursement 519,926 1.0¢ Vanguard Short Term Bond Index (VSCSX)17,900 0.0¢ Asset Allocation Summary Total Fund As of September 30, 2019 NONE 11 Asset Allocation vs. Target Allocation Allocation Differences 0.0%0.6%1.2%1.8%2.4%3.0%-0.6 %-1.2 %-1.8 %-2.4 %-3.0 % Receipt & Disbursement Total Other Fixed Income Total Real Estate Total Global FI Total Domestic Fixed Income Total International Equity Total Domestic Equity 1.0% -0.8 % 0.4% -1.5 % -1.2 % 0.6% 1.6% Asset Allocation vs. Target Allocation Market Value $Allocation (%)Target (%) Total Domestic Equity 27,889,255 51.6 50.0 Total International Equity 8,419,165 15.6 15.0 Total Domestic Fixed Income 7,455,856 13.8 15.0 Total Global FI 1,875,993 3.5 5.0 Total Real Estate 5,621,339 10.4 10.0 Total Other Fixed Income 2,292,511 4.2 5.0 Receipt & Disbursement 519,926 1.0 0.0 Total Fund 54,074,045 100.0 100.0 Asset Allocation vs. Target Allocation Total Fund As of September 30, 2019 12 Historical Asset Allocation by Portfolio Sep-2019 Jun-2019 Mar-2019 Dec-2018 Sep-2018 ($)%($)%($)%($)%($)% Total Equity 36,308,421 67.15 36,223,113 67.19 34,932,094 66.67 30,887,422 64.25 36,006,659 68.00 Total Domestic Equity 27,889,255 51.58 27,588,328 51.18 26,503,976 50.58 23,240,343 48.34 27,105,008 51.19 Vanguard Total Stock Market (VITSX)27,889,255 51.58 27,588,328 51.18 26,503,976 50.58 23,240,343 48.34 27,105,008 51.19 Total International Equity 8,419,165 15.57 8,634,785 16.02 8,428,118 16.09 7,647,079 15.91 8,901,652 16.81 RBC Global (Voyageur)8,419,165 15.57 8,634,785 16.02 8,428,118 16.09 7,647,079 15.91 8,901,652 16.81 Total Fixed Income 11,624,359 21.50 11,482,636 21.30 11,111,072 21.21 10,857,897 22.59 10,943,086 20.67 Total Domestic Fixed Income 7,455,856 13.79 7,362,930 13.66 7,173,941 13.69 6,991,729 14.54 6,930,015 13.09 Galliard Core Fixed Income 5,095,727 9.42 5,025,853 9.32 4,896,369 9.34 4,777,469 9.94 4,709,841 8.90 Galliard TIPS 1,282,666 2.37 1,274,609 2.36 1,243,747 2.37 1,212,270 2.52 1,213,425 2.29 Vanguard Short Term Bond Index (VSCSX) 17,900 0.03 17,691 0.03 17,386 0.03 16,937 0.04 16,774 0.03 Vanguard Inflation-Protected Secs (VAIPX) 1,059,563 1.96 1,044,777 1.94 1,016,439 1.94 985,053 2.05 989,974 1.87 Total Global FI 1,875,993 3.47 1,872,973 3.47 1,828,686 3.49 1,748,164 3.64 1,790,613 3.38 PIMCO Diversified Income Fund Instl (PDIIX) 1,875,993 3.47 1,872,973 3.47 1,828,686 3.49 1,748,164 3.64 1,790,613 3.38 Total Other Fixed Income 2,292,511 4.24 2,246,733 4.17 2,108,445 4.02 2,118,004 4.41 2,222,458 4.20 Crescent Direct Lending Fund 1,171,197 2.17 1,255,176 2.33 1,354,747 2.59 1,385,457 2.88 1,572,728 2.97 Crescent Direct Lending II Fund 1,121,314 2.07 991,557 1.84 753,698 1.44 732,547 1.52 649,730 1.23 Total Real Estate 5,621,339 10.40 5,541,229 10.28 5,496,273 10.49 5,430,039 11.30 5,372,247 10.15 American Core Realty Fund 2,080,151 3.85 2,081,376 3.86 2,080,769 3.97 2,075,780 4.32 2,066,672 3.90 Intercontinental 3,541,188 6.55 3,459,853 6.42 3,415,504 6.52 3,354,259 6.98 3,305,575 6.24 Receipt & Disbursement 519,926 0.96 661,720 1.23 856,414 1.63 896,624 1.87 625,858 1.18 Total Fund Portfolio 54,074,045 100.00 53,908,698 100.00 52,395,852 100.00 48,071,982 100.00 52,947,850 100.00 Asset Allocation Asset Allocation History By Portfolio As of September 30, 2019 13 Historical Asset Allocation by Segment Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Other Fixed Income Real Estate Cash Equivalent 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Allocation (%)9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 Historical Asset Allocation by Segment Total Fund October 1, 2007 To September 30, 2019 14 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 44.0 52.0 60.0 68.0 76.0 Allocation (%)US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv.Real Estate Cash Total Fund Portfolio 51.58 (19)15.57 (40)13.79 (94)3.47 (66)4.24 (83)10.40 (23)0.96 (62) 5th Percentile 60.12 25.88 49.67 9.29 39.91 14.35 9.90 1st Quartile 49.24 18.94 33.90 4.89 19.78 10.25 2.54 Median 40.86 14.46 27.18 4.14 10.06 8.77 1.38 3rd Quartile 29.76 11.72 20.20 2.57 4.89 5.28 0.60 95th Percentile 16.82 6.68 13.18 0.05 1.35 2.97 0.07 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans-Total Fund As of September 30, 2019 15 Financial Reconciliation Quarter to Date Market Value 07/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 09/30/2019 Total Equity 36,223,113 40,227 -- -40,227 -1,519 175,607 -88,780 36,308,421 Total Domestic Equity 27,588,328 ----- 128,708 172,220 27,889,255 Vanguard Total Stock Market (VITSX)27,588,328 ----- 128,708 172,220 27,889,255 Total International Equity 8,634,785 40,227 -- -40,227 -1,519 46,899 -261,000 8,419,165 RBC Global (Voyageur)8,634,785 40,227 -- -40,227 -1,519 46,899 -261,000 8,419,165 Total Fixed Income 11,482,636 26,398 ---3,619 -160 27,466 91,638 11,624,359 Total Domestic Fixed Income 7,362,930 ----3,619 -160 8,422 88,283 7,455,856 Galliard Core Fixed Income 5,025,853 ----3,619 --73,494 5,095,727 Galliard TIPS 1,274,609 -----160 1,168 7,048 1,282,666 Vanguard Short Term Bond Index (VSCSX)17,691 -----129 81 17,900 Vanguard Inflation-Protected Secs (VAIPX) 1,044,777 -----7,126 7,660 1,059,563 Total Global FI 1,872,973 -19,380 ----19,045 3,355 1,875,993 PIMCO Diversified Income Fund Instl (PDIIX) 1,872,973 -19,380 ----19,045 3,355 1,875,993 Total Other Fixed Income 2,246,733 45,778 ------ 2,292,511 Crescent Direct Lending Fund 1,255,176 -83,979 ------ 1,171,197 Crescent Direct Lending II Fund 991,557 129,757 ------ 1,121,314 Total Real Estate 5,541,229 -25,097 -- -10,972 -63,348 52,830 5,621,339 American Core Realty Fund 2,081,376 -25,097 ---5,736 -30,844 -1,237 2,080,151 Intercontinental 3,459,853 ----5,236 -32,504 54,067 3,541,188 Receipt & Disbursement 661,720 -41,529 799,134 -873,397 - -29,814 3,812 -519,926 Total Fund Portfolio 53,908,698 - 799,134 -873,397 -54,819 -31,493 270,233 55,688 54,074,045 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30, 2019 16 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 09/30/2019 Total Equity 36,006,659 80,130 107 - -80,130 -5,728 804,357 -496,975 36,308,421 Total Domestic Equity 27,105,008 -----499,547 284,701 27,889,255 Vanguard Total Stock Market (VITSX)27,105,008 -----499,547 284,701 27,889,255 Total International Equity 8,901,652 80,130 107 - -80,130 -5,728 304,811 -781,676 8,419,165 RBC Global (Voyageur)8,901,652 80,130 107 - -80,130 -5,728 304,811 -781,676 8,419,165 Total Fixed Income 10,943,086 -143,587 -- -38,698 -7,452 109,886 761,124 11,624,359 Total Domestic Fixed Income 6,930,015 --- -13,985 -617 29,202 511,242 7,455,856 Galliard Core Fixed Income 4,709,841 --- -13,985 -- 399,872 5,095,727 Galliard TIPS 1,213,425 -----617 4,109 65,749 1,282,666 Vanguard Short Term Bond Index (VSCSX)16,774 -----499 627 17,900 Vanguard Inflation-Protected Secs (VAIPX) 989,974 -----24,594 44,994 1,059,563 Total Global FI 1,790,613 -80,630 ----80,455 85,555 1,875,993 PIMCO Diversified Income Fund Instl (PDIIX) 1,790,613 -80,630 ----80,455 85,555 1,875,993 Total Other Fixed Income 2,222,458 -62,957 -- -24,713 -6,835 230 164,328 2,292,511 Crescent Direct Lending Fund 1,572,728 -476,304 -- -19,734 -4,228 - 98,735 1,171,197 Crescent Direct Lending II Fund 649,730 413,347 -- -4,979 -2,607 230 65,593 1,121,314 Total Real Estate 5,372,247 -99,742 -- -60,526 -245,981 163,380 5,621,339 American Core Realty Fund 2,066,672 -99,742 -- -22,938 -123,070 13,090 2,080,151 Intercontinental 3,305,575 --- -37,588 -122,911 150,290 3,541,188 Receipt & Disbursement 625,858 163,199 3,082,432 -3,283,751 - -85,058 17,246 -519,926 Total Fund Portfolio 52,947,850 - 3,082,539 -3,283,751 -179,355 -98,238 1,177,471 427,529 54,074,045 Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2018 To September 30, 2019 17 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Fund (Net)0.51 2.69 2.69 9.26 7.78 9.46 9.37 6.07 11/01/2000 Total Fund Policy 0.91 4.35 4.35 8.96 7.55 9.13 9.45 5.79 Difference -0.40 -1.66 -1.66 0.30 0.23 0.33 -0.08 0.28 Total Fund (New Mgrs) (Net)0.51 2.69 2.69 9.26 7.78 9.46 9.37 6.17 10/01/2007 Total Fund Policy 0.91 4.35 4.35 8.96 7.55 9.13 9.45 6.69 Difference -0.40 -1.66 -1.66 0.30 0.23 0.33 -0.08 -0.52 Total Fund (Gross)0.61 (65)3.05 (80)3.05 (80)9.62 (3)8.13 (2)9.85 (1)9.87 (1)6.67 (11)11/01/2000 Total Fund Policy 0.91 (43)4.35 (49)4.35 (49)8.96 (12)7.55 (6)9.13 (5)9.45 (4)5.79 (62) Difference -0.30 -1.30 -1.30 0.66 0.58 0.72 0.42 0.88 All Public Plans-Total Fund Median 0.83 4.31 4.31 8.01 6.45 7.74 8.17 6.01 Total Fund (New Mgrs) (Gross)0.61 (65)3.05 (80)3.05 (80)9.62 (3)8.13 (2)9.85 (1)9.87 (1)6.68 (5)10/01/2007 Total Fund Policy 0.91 (43)4.35 (49)4.35 (49)8.96 (12)7.55 (6)9.13 (5)9.45 (4)6.69 (5) Difference -0.30 -1.30 -1.30 0.66 0.58 0.72 0.42 -0.01 All Public Plans-Total Fund Median 0.83 4.31 4.31 8.01 6.45 7.74 8.17 5.63 Total Equity 0.24 0.85 0.85 11.50 9.29 12.03 11.80 6.91 01/01/2001 Total Equity Policy 0.67 2.09 2.09 11.53 8.93 11.56 11.33 5.82 Difference -0.43 -1.24 -1.24 -0.03 0.36 0.47 0.47 1.09 Total Domestic Equity 1.09 (66)2.89 (51)2.89 (51)12.90 (44)10.51 (48)13.06 (57)12.79 (66)7.14 (37)11/01/2000 Total Domestic Equity Policy 1.16 (65)2.92 (51)2.92 (51)12.83 (48)10.44 (49)13.00 (58)13.08 (54)5.95 (91) Difference -0.07 -0.03 -0.03 0.07 0.07 0.06 -0.29 1.19 IM U.S. Large Cap Core Equity (SA+CF) Median 1.54 3.02 3.02 12.74 10.36 13.22 13.12 6.80 Total International Equity -2.48 (76)-5.36 (69)-5.36 (69)7.42 (19)5.60 (16)9.13 (10)8.89 (7)6.15 (53)11/01/2000 MSCI EAFE Index -1.00 (35)-0.82 (29)-0.82 (29)7.01 (27)3.77 (37)6.62 (41)5.39 (62)4.36 (97) Difference -1.48 -4.54 -4.54 0.41 1.83 2.51 3.50 1.79 IM International Large Cap Value Equity (SA+CF) Median -1.52 -3.30 -3.30 5.85 3.02 6.16 5.86 6.23 Total Fixed Income 1.04 8.15 8.15 4.69 4.07 3.27 4.30 5.04 11/01/2000 Total Fixed Policy 1.38 8.08 8.08 2.39 2.74 2.24 3.16 4.57 Difference -0.34 0.07 0.07 2.30 1.33 1.03 1.14 0.47 Total Domestic Fixed Income 1.31 (75)7.81 (66)7.81 (66)2.67 (51)2.91 (53)2.25 (73)3.53 (44)4.63 (55)11/01/2000 Total Domestic Fixed Policy 1.38 (58)8.08 (44)8.08 (44)2.39 (88)2.74 (74)2.24 (75)3.16 (75)4.57 (69) Difference -0.07 -0.27 -0.27 0.28 0.17 0.01 0.37 0.06 IM U.S. Intermediate Duration (SA+CF) Median 1.42 7.99 7.99 2.68 2.93 2.45 3.40 4.69 Comparative Performance Trailing Returns Total Fund As of September 30, 2019 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Parenthesized number represents pertinent peer group ranking: 1-100, best to worst. Crescent presented on IRR page.18 Comparative Performance Trailing Returns Total Fund As of September 30, 2019 QTR FYTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Total Global FI 1.20 (46)9.53 (19)9.53 (19)N/A N/A N/A N/A 7.04 (7)04/01/2018 Blmbg. Barc. Global Credit (Hedged)2.36 (10)10.83 (12)10.83 (12)4.66 (5)4.77 (1)4.58 (2)5.60 (2)7.47 (6) Difference -1.16 -1.30 -1.30 N/A N/A N/A N/A -0.43 IM Global Fixed Income (MF) Median 1.01 7.65 7.65 2.29 2.16 1.70 3.03 3.28 Total Real Estate 2.11 (35)7.75 (35)7.75 (35)9.33 (28)10.72 (35)11.91 (37)11.43 (63)6.33 (22)10/01/2007 NCREIF Fund Index-ODCE (VW)1.31 (87)5.60 (90)5.60 (90)7.31 (82)9.35 (78)10.30 (76)10.86 (69)5.38 (67) Difference 0.80 2.15 2.15 2.02 1.37 1.61 0.57 0.95 IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 7.05 7.05 8.43 9.97 11.13 11.67 5.69 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 Comparative Performance Trailing Returns Total Fund As of September 30, 2019 QTR FYTD 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Vanguard Total Stock Market (VITSX)1.09 (47)2.89 (38)2.89 (38)12.81 (18)10.42 (13)N/A N/A 12.68 (10)03/01/2013 Vanguard Total Stock Market Index Hybrid 1.11 (45)2.92 (37)2.92 (37)12.82 (18)10.43 (12)13.00 (15)13.12 (6)12.70 (10) Difference -0.02 -0.03 -0.03 -0.01 -0.01 N/A N/A -0.02 IM U.S. Multi-Cap Core Equity (MF) Median 1.00 1.47 1.47 11.12 8.41 11.82 11.44 11.25 RBC Global (Voyageur)-2.48 (76)-5.36 (69)-5.36 (69)7.42 (19)5.60 (16)9.13 (10)8.89 (7)3.94 (15)11/01/2007 MSCI EAFE Index -1.00 (35)-0.82 (29)-0.82 (29)7.01 (27)3.77 (37)6.62 (41)5.39 (62)1.40 (63) Difference -1.48 -4.54 -4.54 0.41 1.83 2.51 3.50 2.54 IM International Large Cap Value Equity (SA+CF) Median -1.52 -3.30 -3.30 5.85 3.02 6.16 5.86 2.29 Galliard Core Fixed Income 1.46 (35)8.50 (16)8.50 (16)2.76 (39)3.13 (25)2.59 (35)3.75 (22)3.95 (63)10/01/2007 Bloomberg Barclays Intermed Aggregate Index 1.38 (58)8.08 (44)8.08 (44)2.39 (88)2.74 (74)2.24 (75)3.16 (75)3.77 (83) Difference 0.08 0.42 0.42 0.37 0.39 0.35 0.59 0.18 IM U.S. Intermediate Duration (SA+CF) Median 1.42 7.99 7.99 2.68 2.93 2.45 3.40 4.08 Galliard TIPS 0.64 (83)5.76 (84)5.76 (84)1.94 (95)2.02 (83)0.98 (81)2.66 (100)3.18 (100)10/01/2007 Blmbg. Barc. U.S. TIPS 1-10 Year 0.60 (90)5.75 (86)5.75 (86)1.94 (94)1.95 (94)0.90 (92)2.69 (100)3.22 (100) Difference 0.04 0.01 0.01 0.00 0.07 0.08 -0.03 -0.04 IM U.S. TIPS (SA+CF) Median 1.30 7.09 7.09 2.25 2.47 1.09 3.49 3.94 Vanguard Inflation-Protected Secs (VAIPX)1.42 (14)7.03 (13)7.03 (13)N/A N/A N/A N/A 3.22 (22)01/01/2017 Bloomberg Barclays U.S. TIPS Index 1.35 (19)7.13 (9)7.13 (9)2.21 (19)2.45 (10)1.06 (13)3.46 (6)3.33 (15) Difference 0.07 -0.10 -0.10 N/A N/A N/A N/A -0.11 IM U.S. TIPS (MF) Median 0.80 5.71 5.71 1.76 1.73 0.56 2.78 2.60 Vanguard Short Term Bond Index (VSCSX)1.19 (12)6.71 (12)6.71 (12)2.67 (16)N/A N/A N/A 2.70 (15)01/01/2015 Blmbg. Barc. U.S. Corporate 1-5 Year Index 1.17 (14)6.78 (11)6.78 (11)2.86 (6)2.78 (4)2.54 (5)3.40 (19)2.85 (7) Difference 0.02 -0.07 -0.07 -0.19 N/A N/A N/A -0.15 IM U.S. Intermediate Investment Grade (MF) Median 0.87 5.37 5.37 2.00 1.89 1.58 2.42 1.98 PIMCO Diversified Income Fund Instl (PDIIX)1.20 (46)9.52 (19)9.52 (19)N/A N/A N/A N/A 7.03 (7)04/01/2018 Blmbg. Barc. Global Credit (Hedged)2.36 (10)10.83 (12)10.83 (12)4.66 (5)4.77 (1)4.58 (2)5.60 (2)7.47 (6) Difference -1.16 -1.31 -1.31 N/A N/A N/A N/A -0.44 IM Global Fixed Income (MF) Median 1.01 7.65 7.65 2.29 2.16 1.70 3.03 3.28 American Core Realty Fund 1.44 (81)6.81 (60)6.81 (60)7.61 (78)9.14 (84)10.06 (79)10.03 (89)5.22 (77)10/01/2007 American Core Realty Policy 1.38 (86)6.16 (87)6.16 (87)7.59 (80)9.59 (73)10.39 (75)10.80 (69)7.14 (9) Difference 0.06 0.65 0.65 0.02 -0.45 -0.33 -0.77 -1.92 IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 7.05 7.05 8.43 9.97 11.13 11.67 5.69 Intercontinental 2.50 (25)8.32 (30)8.32 (30)10.50 (10)11.74 (26)12.98 (25)N/A 13.32 (35)10/01/2010 NCREIF Fund Index-ODCE 1.31 (87)5.60 (90)5.60 (90)7.31 (82)9.35 (78)10.30 (76)10.86 (69)11.30 (76) Difference 1.19 2.72 2.72 3.19 2.39 2.68 N/A 2.02 IM U.S. Open End Private Real Estate (SA+CF) Median 1.80 7.05 7.05 8.43 9.97 11.13 11.67 12.19 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Parenthesized number represents pertinent peer group ranking: 1-100, best to worst. Crescent presented on IRR page.20 Comparative Performance - IRR QTR 1 YR 3 YR 5 YR 7 YR 10 YR Inception Inception Date Crescent Direct Lending Fund 0.00 5.81 7.78 7.72 N/A N/A 7.72 10/14/2014 Crescent Direct Lending II Fund 0.00 7.43 N/A N/A N/A N/A 8.83 03/13/2018 Comparative Performance - IRR As of September 30, 2019 21 Comparative Performance Fiscal Year Returns FYTD Oct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Total Fund (Net)2.69 (86)2.69 (86)11.28 (3)14.16 (11)11.15 (17)0.33 (25)11.85 (15)15.72 (7)18.95 (25)-1.17 (85)10.67 (32) Total Fund Policy 4.35 (49)4.35 (49)9.81 (10)12.89 (30)10.64 (25)0.55 (21)11.38 (23)15.00 (10)19.61 (16)2.51 (19)9.13 (70) Difference -1.66 -1.66 1.47 1.27 0.51 -0.22 0.47 0.72 -0.66 -3.68 1.54 All Public Plans-Total Fund Median 4.31 4.31 7.09 11.82 9.74 -0.78 9.93 12.00 17.58 0.67 9.90 Total Fund (New Mgrs) (Net)2.69 (86)2.69 (86)11.28 (3)14.16 (11)11.15 (17)0.33 (25)11.85 (15)15.72 (7)18.95 (25)-1.17 (85)10.66 (32) Total Fund Policy 4.35 (49)4.35 (49)9.81 (10)12.89 (30)10.64 (25)0.55 (21)11.38 (23)15.00 (10)19.61 (16)2.51 (19)9.13 (70) Difference -1.66 -1.66 1.47 1.27 0.51 -0.22 0.47 0.72 -0.66 -3.68 1.53 All Public Plans-Total Fund Median 4.31 4.31 7.09 11.82 9.74 -0.78 9.93 12.00 17.58 0.67 9.90 Total Fund (Gross)3.05 (80)3.05 (80)11.63 (2)14.52 (8)11.51 (13)0.63 (20)12.21 (11)16.33 (5)19.81 (13)-0.45 (74)11.40 (18) Total Fund Policy 4.35 (49)4.35 (49)9.81 (10)12.89 (30)10.64 (25)0.55 (21)11.38 (23)15.00 (10)19.61 (16)2.51 (19)9.13 (70) Difference -1.30 -1.30 1.82 1.63 0.87 0.08 0.83 1.33 0.20 -2.96 2.27 All Public Plans-Total Fund Median 4.31 4.31 7.09 11.82 9.74 -0.78 9.93 12.00 17.58 0.67 9.90 Total Fund (New Mgrs) (Gross)3.05 (80)3.05 (80)11.63 (2)14.52 (8)11.51 (13)0.63 (20)12.21 (11)16.33 (5)19.81 (13)-0.45 (74)11.40 (18) Total Fund Policy 4.35 (49)4.35 (49)9.81 (10)12.89 (30)10.64 (25)0.55 (21)11.38 (23)15.00 (10)19.61 (16)2.51 (19)9.13 (70) Difference -1.30 -1.30 1.82 1.63 0.87 0.08 0.83 1.33 0.20 -2.96 2.27 All Public Plans-Total Fund Median 4.31 4.31 7.09 11.82 9.74 -0.78 9.93 12.00 17.58 0.67 9.90 Total Equity 0.85 0.85 15.01 19.50 14.20 -1.52 15.46 23.09 27.08 -4.58 13.61 Total Equity Policy 2.09 2.09 14.18 19.00 13.13 -2.28 14.65 22.30 26.46 -1.66 9.34 Difference -1.24 -1.24 0.83 0.50 1.07 0.76 0.81 0.79 0.62 -2.92 4.27 Total Domestic Equity 2.89 (51)2.89 (51)17.88 (41)18.64 (52)15.21 (25)-0.59 (62)17.58 (69)21.85 (34)27.76 (61)-3.30 (90)14.19 (9) Total Domestic Equity Policy 2.92 (51)2.92 (51)17.58 (46)18.71 (51)14.96 (29)-0.49 (61)17.76 (67)21.60 (37)30.20 (44)0.55 (58)10.96 (32) Difference -0.03 -0.03 0.30 -0.07 0.25 -0.10 -0.18 0.25 -2.44 -3.85 3.23 IM U.S. Large Cap Core Equity (SA+CF) Median 3.02 3.02 17.25 18.75 13.30 0.11 19.19 20.61 29.63 1.17 9.57 Total International Equity -5.36 (69)-5.36 (69)6.76 (6)22.69 (36)10.74 (29)-4.36 (20)10.08 (8)27.54 (18)24.74 (3)-8.75 (53)11.69 (15) MSCI EAFE Index -0.82 (29)-0.82 (29)3.25 (29)19.65 (55)7.06 (61)-8.27 (42)4.70 (63)24.29 (40)14.33 (57)-8.94 (55)3.71 (66) Difference -4.54 -4.54 3.51 3.04 3.68 3.91 5.38 3.25 10.41 0.19 7.98 IM International Large Cap Value Equity (SA+CF) Median -3.30 -3.30 1.45 20.82 8.39 -9.46 5.75 22.93 15.45 -8.62 5.00 Total Fixed Income 8.15 8.15 2.41 3.59 4.93 1.40 3.23 -0.59 6.34 4.67 9.27 Total Fixed Policy 8.08 8.08 -0.93 0.25 3.57 2.95 2.74 -0.71 4.31 4.22 7.52 Difference 0.07 0.07 3.34 3.34 1.36 -1.55 0.49 0.12 2.03 0.45 1.75 Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2019 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 September 30, 2019 FYTD Oct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Total Domestic Fixed Income 7.81 (66)7.81 (66)-0.21 (34)0.61 (61)4.21 (31)2.31 (73)2.61 (63)-1.30 (95)5.88 (44)4.67 (13)9.27 (22) Total Domestic Fixed Policy 8.08 (44)8.08 (44)-0.93 (95)0.25 (87)3.57 (73)2.95 (32)2.74 (58)-0.71 (77)4.31 (84)4.22 (23)7.52 (77) Difference -0.27 -0.27 0.72 0.36 0.64 -0.64 -0.13 -0.59 1.57 0.45 1.75 IM U.S. Intermediate Duration (SA+CF) Median 7.99 7.99 -0.38 0.70 3.90 2.70 2.88 -0.27 5.57 3.61 8.25 Total Global Fixed Income N/A N/A N/A N/A 0.81 (100)-7.63 (93)6.31 (12)3.53 (2)N/A N/A N/A Total Global Fixed Income Policy 8.13 (39)8.13 (39)-1.54 (55)-2.69 (94)9.71 (20)-3.83 (50)-0.07 (96)-4.60 (82)N/A N/A N/A Difference N/A N/A N/A N/A -8.90 -3.80 6.38 8.13 N/A N/A N/A IM Global Fixed Income (MF) Median 7.65 7.65 -1.29 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 Total Global FI 9.53 (19)9.53 (19)N/A N/A N/A N/A N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged)10.83 (12)10.83 (12)0.39 (17)3.04 (27)9.19 (25)0.86 (18)6.83 (9)1.46 (8)11.61 (5)1.69 (53)11.05 (28) Difference -1.30 -1.30 N/A N/A N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median 7.65 7.65 -1.29 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 Total Real Estate 7.75 (35)7.75 (35)10.25 (26)10.01 (19)11.44 (49)14.27 (67)13.47 (38)16.42 (19)12.81 (51)15.82 (72)2.71 (77) NCREIF Fund Index-ODCE 5.60 (90)5.60 (90)8.68 (63)7.66 (62)10.08 (83)14.93 (61)12.40 (68)13.04 (53)11.61 (64)18.27 (43)6.97 (43) Difference 2.15 2.15 1.57 2.35 1.36 -0.66 1.07 3.38 1.20 -2.45 -4.26 IM U.S. Open End Private Real Estate (SA+CF) Median 7.05 7.05 9.04 8.29 11.32 15.45 12.78 13.18 12.87 16.96 6.43 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 Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2019 FYTD Oct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Lateef Asset Mgmt.Equity N/A N/A N/A N/A N/A N/A N/A N/A 33.21 (9)-1.17 (76)11.93 (44) Russell 1000 Growth Index 3.71 (54)3.71 (54)26.30 (36)21.94 (37)13.76 (23)3.17 (54)19.15 (40)19.27 (64)29.19 (39)3.78 (30)12.65 (36) Difference N/A N/A N/A N/A N/A N/A N/A N/A 4.02 -4.95 -0.72 IM U.S. Large Cap Growth Equity (SA+CF) Median 3.90 3.90 24.38 20.81 11.64 3.53 18.19 20.25 27.69 1.38 11.29 RBC Global (Voyageur)-5.36 (69)-5.36 (69)6.76 (6)22.69 (36)10.74 (29)-4.36 (20)10.08 (8)27.54 (18)24.74 (3)-8.75 (53)11.69 (15) MSCI EAFE Index -0.82 (29)-0.82 (29)3.25 (29)19.65 (55)7.06 (61)-8.27 (42)4.70 (63)24.29 (40)14.33 (57)-8.94 (55)3.71 (66) Difference -4.54 -4.54 3.51 3.04 3.68 3.91 5.38 3.25 10.41 0.19 7.98 IM International Large Cap Value Equity (SA+CF) Median -3.30 -3.30 1.45 20.82 8.39 -9.46 5.75 22.93 15.45 -8.62 5.00 Vanguard Total Stock Market (VITSX)2.89 (38)2.89 (38)17.62 (19)18.64 (38)15.00 (16)-0.59 (35)17.77 (32)N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 2.92 (37)2.92 (37)17.62 (19)18.64 (38)14.99 (16)-0.55 (34)17.77 (32)21.60 (59)30.28 (16)0.71 (26)11.16 (26) Difference -0.03 -0.03 0.00 0.00 0.01 -0.04 0.00 N/A N/A N/A N/A IM U.S. Multi-Cap Core Equity (MF) Median 1.47 1.47 14.76 17.63 11.79 -1.81 16.35 22.62 27.03 -1.53 9.25 Galliard Core Fixed Income 8.50 (16)8.50 (16)-0.43 (57)0.44 (73)4.36 (25)3.04 (26)3.15 (38)-0.64 (74)5.82 (45)4.16 (28)9.63 (17) Bloomberg Barclays Intermed Aggregate Index 8.08 (44)8.08 (44)-0.93 (95)0.25 (87)3.57 (73)2.95 (32)2.74 (58)-0.71 (77)4.31 (84)4.22 (23)7.52 (77) Difference 0.42 0.42 0.50 0.19 0.79 0.09 0.41 0.07 1.51 -0.06 2.11 IM U.S. Intermediate Duration (SA+CF) Median 7.99 7.99 -0.38 0.70 3.90 2.70 2.88 -0.27 5.57 3.61 8.25 Galliard TIPS 5.76 5.76 0.39 -0.23 4.75 -0.38 0.59 -3.71 6.01 6.73 7.28 Blmbg. Barc. U.S. TIPS 1-10 Year 5.75 5.75 0.33 -0.14 4.83 -0.82 0.61 -3.90 6.32 7.19 7.40 Difference 0.01 0.01 0.06 -0.09 -0.08 0.44 -0.02 0.19 -0.31 -0.46 -0.12 Templeton Global Bond Fund (FBNRX)N/A N/A N/A N/A 0.83 -7.63 6.33 3.54 N/A N/A N/A FTSE World Government Bond Index 8.13 8.13 -1.54 -2.69 9.71 -3.83 -0.07 -4.60 3.29 4.61 4.99 Difference N/A N/A N/A N/A -8.88 -3.80 6.40 8.14 N/A N/A N/A PIMCO Diversified Income Fund Instl (PDIIX)9.52 (19)9.52 (19)N/A N/A N/A N/A N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged)10.83 (12)10.83 (12)0.39 (17)3.04 (27)9.19 (25)0.86 (18)6.83 (9)1.46 (8)11.61 (5)1.69 (53)11.05 (28) Difference -1.31 -1.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median 7.65 7.65 -1.29 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 7.68 Vanguard Inflation-Protected Secs (VAIPX)7.03 (13)7.03 (13)0.23 (55)N/A N/A N/A N/A N/A N/A N/A N/A Bloomberg Barclays U.S. TIPS Index 7.13 (9)7.13 (9)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) Difference -0.10 -0.10 -0.18 N/A N/A N/A N/A N/A N/A N/A N/A IM U.S. TIPS (MF) Median 5.71 5.71 0.29 -0.43 5.77 -1.90 0.95 -6.17 8.21 8.10 8.72 Vanguard Short Term Bond Index (VSCSX)6.71 (12)6.71 (12)-0.14 (41)1.55 (27)3.40 (20)N/A N/A N/A N/A N/A N/A Blmbg. Barc. U.S. Corporate 1-5 Year Index 6.78 (11)6.78 (11)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) Difference -0.07 -0.07 -0.25 -0.27 0.07 N/A N/A N/A N/A N/A N/A IM U.S. Intermediate Investment Grade (MF) Median 5.37 5.37 -0.38 0.85 2.56 1.21 1.64 -0.52 4.93 1.99 7.52 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Intercontinental Returns are preliminary Parenthesized number represents pertinent peer group ranking: 1-100, best to worst 24 Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2019 FYTD Oct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 American Core Realty Fund 6.81 (60)6.81 (60)8.50 (66)7.52 (67)9.04 (97)13.98 (69)12.49 (64)12.27 (70)11.56 (65)16.11 (66)2.71 (77) American Core Realty Policy 6.16 (87)6.16 (87)8.82 (59)7.81 (60)10.62 (69)14.71 (62)12.39 (68)12.47 (67)11.77 (63)18.03 (44)5.84 (56) Difference 0.65 0.65 -0.32 -0.29 -1.58 -0.73 0.10 -0.20 -0.21 -1.92 -3.13 IM U.S. Open End Private Real Estate (SA+CF) Median 7.05 7.05 9.04 8.29 11.32 15.45 12.78 13.18 12.87 16.96 6.43 Intercontinental 8.32 (30)8.32 (30)11.40 (8)11.82 (7)13.30 (23)13.96 (69)14.10 (30)18.21 (10)13.38 (40)15.68 (73)N/A NCREIF Fund Index-ODCE 5.60 (90)5.60 (90)8.68 (63)7.66 (62)10.08 (83)14.93 (61)12.40 (68)13.04 (53)11.61 (64)18.27 (43)6.97 (43) Difference 2.72 2.72 2.72 4.16 3.22 -0.97 1.70 5.17 1.77 -2.59 N/A IM U.S. Open End Private Real Estate (SA+CF) Median 7.05 7.05 9.04 8.29 11.32 15.45 12.78 13.18 12.87 16.96 6.43 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 25 Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund Comparative Performance -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Total Fund Portfolio 0.61 (65)3.05 (80)3.05 (80)7.25 (8)9.62 (3)10.09 (2)8.13 (2) Total Fund Policy 0.91 (43)4.35 (49)4.35 (49)7.04 (11)8.96 (12)9.38 (8)7.55 (6) Median 0.83 4.31 4.31 5.90 8.01 8.35 6.45 -10.00 -7.00 -4.00 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Total Fund Portfolio 3.05 (80)11.63 (2)14.52 (8)11.51 (13)0.63 (20)12.21 (11) Total Fund Policy 4.35 (49)9.81 (10)12.89 (30)10.64 (25)0.55 (21)11.38 (23) Median 4.31 7.09 11.82 9.74 -0.78 9.93 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Total Fund Portfolio 3.24 (52)9.36 (21)-9.28 (89)4.26 (4)2.57 (4)-0.15 (39) Total Fund Policy 3.40 (32)9.33 (21)-8.53 (75)3.96 (7)2.07 (11)-0.57 (66) All Public Plans-Total Fund Median 3.25 8.40 -7.54 2.58 1.03 -0.32 As of September 30, 2019 Performance Review Total Fund Portfolio NONE 26 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Over Performance Earliest Date Latest Date 3.0 6.0 9.0 12.0 15.0 18.0 Total Fund Portfolio (%)3.0 6.0 9.0 12.0 15.0 18.0 Total Fund Policy (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Total Fund Portfolio 20 20 (100%)0 (0%)0 (0%)0 (0%) Total Fund Policy 20 20 (100%)0 (0%)0 (0%)0 (0%) 7.42 7.95 8.48 9.01 9.54 10.07 Return (%)7.22 7.41 7.60 7.79 7.98 8.17 8.36 8.55 Risk (Standard Deviation %) Return StandardDeviation Total Fund Portfolio 9.62 8.37 Total Fund Policy 8.96 7.96 Median 8.01 7.38¾ 6.16 6.72 7.28 7.84 8.40 Return (%)6.4 6.6 6.8 7.0 7.2 7.4 7.6 Risk (Standard Deviation %) Return StandardDeviation Total Fund Portfolio 8.13 7.35 Total Fund Policy 7.55 7.00 Median 6.45 6.61¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk Total Fund Portfolio 0.85 106.37 103.63 0.24 0.77 0.96 1.05 5.36 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.93 1.00 4.93 90 Day U.S. Treasury Bill 8.01 10.15 -10.09 1.58 -0.93 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Total Fund Portfolio 0.83 106.28 102.72 0.24 0.69 0.98 1.04 4.65 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.95 1.00 4.35 90 Day U.S. Treasury Bill 7.00 7.47 -6.82 0.95 -0.95 N/A 0.00 0.00 As of September 30, 2019 Performance Review Total Fund Portfolio NONE 27 Peer Group Analysis - IM U.S. Multi-Cap Core Equity (MF) Comparative Performance -12.00 -8.00 -4.00 0.00 4.00 8.00 12.00 16.00 20.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Vanguard Total Stock Market (VITSX) 1.09 (47)2.89 (38)2.89 (38)10.01 (24)12.81 (18)13.36 (11)10.42 (13) Vanguard Total Stock Market Index Hybrid 1.11 (45)2.92 (37)2.92 (37)10.02 (24)12.82 (18)13.36 (10)10.43 (12) Median 1.00 1.47 1.47 7.92 11.12 11.02 8.41 -15.00 -10.00 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 ReturnOct- 2018 To Sep- 2019 Oct- 2017 To Sep- 2018 Oct- 2016 To Sep- 2017 Oct- 2015 To Sep- 2016 Oct- 2014 To Sep- 2015 Oct- 2013 To Sep- 2014 Vanguard Total Stock Market (VITSX)2.89 (38)17.62 (19)18.64 (38)15.00 (16)-0.59 (35)17.77 (32) Vanguard Total Stock Market Index Hybrid 2.92 (37)17.62 (19)18.64 (38)14.99 (16)-0.55 (34)17.77 (32) Median 1.47 14.76 17.63 11.79 -1.81 16.35 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Vanguard Total Stock Market (VITSX)4.09 (41)14.04 (31)-14.26 (47)7.09 (23)3.91 (18)-0.60 (49) Vanguard Total Stock Market Index Hybrid 4.08 (43)14.06 (31)-14.26 (47)7.08 (24)3.91 (17)-0.60 (49) IM U.S. Multi-Cap Core Equity (MF) Median 3.87 13.29 -14.37 5.84 2.66 -0.61 Performance Review As of September 30, 2019 Vanguard Total Stock Market (VITSX) NONE 28 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Under Performance Earliest Date Latest Date 6.0 9.0 12.0 15.0 18.0 21.0 Vanguard Total Stock Market (VITSX) (%)6.0 9.0 12.0 15.0 18.0 21.0 Vanguard Total Stock Market Index Hybrid (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Vanguard Total Stock Market (VITSX) 15 14 (93%)1 (7%)0 (0%)0 (0%) Vanguard Total Stock Market Index Hybrid 20 14 (70%)6 (30%)0 (0%)0 (0%) 10.64 11.20 11.76 12.32 12.88 13.44 Return (%)12.33 12.36 12.39 12.42 12.45 12.48 12.51 Risk (Standard Deviation %) Return StandardDeviation Vanguard Total Stock Market (VITSX)12.81 12.36 Vanguard Total Stock Market Index Hybrid 12.82 12.37 Median 11.12 12.49¾ 7.92 8.58 9.24 9.90 10.56 11.22 Return (%)12.00 12.06 12.12 12.18 12.24 12.30 12.36 Risk (Standard Deviation %) Return StandardDeviation Vanguard Total Stock Market (VITSX)10.42 12.07 Vanguard Total Stock Market Index Hybrid 10.43 12.06 Median 8.41 12.29¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk Vanguard Total Stock Market (VITSX)0.03 99.94 99.95 -0.01 -0.32 0.92 1.00 8.35 Vanguard Total Stock Market Index Hybrid 0.00 100.00 100.00 0.00 N/A 0.92 1.00 8.35 90 Day U.S. Treasury Bill 12.39 4.93 -3.14 1.55 -0.92 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard Total Stock Market (VITSX)0.03 99.95 100.00 -0.01 -0.37 0.81 1.00 7.77 Vanguard Total Stock Market Index Hybrid 0.00 100.00 100.00 0.00 N/A 0.81 1.00 7.76 90 Day U.S. Treasury Bill 12.06 3.38 -2.02 0.96 -0.81 N/A 0.00 0.01 Performance Review As of September 30, 2019 Vanguard Total Stock Market (VITSX) NONE 29 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) Comparative Performance -16.00 -12.00 -8.00 -4.00 0.00 4.00 8.00 12.00 16.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR RBC Global (Voyageur) -2.48 (76)-5.36 (69)-5.36 (69)0.52 (30)7.42 (19)8.24 (21)5.60 (16) MSCI EAFE Index -1.00 (35)-0.82 (29)-0.82 (29)1.20 (23)7.01 (27)7.02 (40)3.77 (37) Median -1.52 -3.30 -3.30 -0.64 5.85 6.22 3.02 -28.00 -20.00 -12.00 -4.00 4.00 12.00 20.00 28.00 36.00 44.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 RBC Global (Voyageur) -5.36 (69)6.76 (6)22.69 (36)10.74 (29)-4.36 (20)10.08 (8) MSCI EAFE Index -0.82 (29)3.25 (29)19.65 (55)7.06 (61)-8.27 (42)4.70 (63) Median -3.30 1.45 20.82 8.39 -9.46 5.75 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 RBC Global (Voyageur)2.47 (49)10.23 (34)-14.08 (72)1.54 (31)1.35 (4)-1.41 (58) MSCI EAFE Index 3.97 (15)10.13 (36)-12.50 (44)1.42 (34)-0.97 (17)-1.41 (58) IM International Large Cap Value Equity (SA+CF) Median 2.41 9.55 -12.88 0.88 -2.16 -1.26 Performance Review As of September 30, 2019 RBC Global (Voyageur) NONE 30 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Over Performance Earliest Date Latest Date -8.0 0.0 8.0 16.0 24.0 RBC Global (Voyageur) (%)-8.0 0.0 8.0 16.0 24.0 MSCI EAFE Index (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count RBC Global (Voyageur) 20 17 (85%)3 (15%)0 (0%)0 (0%) MSCI EAFE Index 20 0 (0%)10 (50%)10 (50%)0 (0%) 5.20 5.72 6.24 6.76 7.28 7.80 Return (%)10.32 10.75 11.18 11.61 12.04 12.47 12.90 13.33 Risk (Standard Deviation %) Return StandardDeviation RBC Global (Voyageur)7.42 12.78 MSCI EAFE Index 7.01 10.91 Median 5.85 11.93¾ 2.55 3.40 4.25 5.10 5.95 6.80 Return (%)11.89 12.18 12.47 12.76 13.05 13.34 13.63 Risk (Standard Deviation %) Return StandardDeviation RBC Global (Voyageur)5.60 13.38 MSCI EAFE Index 3.77 12.15 Median 3.02 12.62¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk RBC Global (Voyageur)3.77 108.37 108.42 -0.32 0.16 0.51 1.13 8.44 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.54 1.00 7.24 90 Day U.S. Treasury Bill 10.95 4.15 -5.72 1.56 -0.54 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk RBC Global (Voyageur)4.48 109.21 99.20 1.75 0.43 0.40 1.04 8.88 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.29 1.00 8.15 90 Day U.S. Treasury Bill 12.15 2.65 -2.96 0.96 -0.29 N/A 0.00 0.01 Performance Review As of September 30, 2019 RBC Global (Voyageur) NONE 31 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) Comparative Performance -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Galliard Core Fixed Inc 1.46 (35)8.50 (16)8.50 (16)3.94 (18)2.76 (39)3.16 (32)3.13 (25) Barclays Int Agg Index 1.38 (58)8.08 (44)8.08 (44)3.48 (76)2.39 (88)2.68 (83)2.74 (74) Median 1.42 7.99 7.99 3.67 2.68 2.96 2.93 -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Galliard Core Fixed Inc 8.50 (16)-0.43 (57)0.44 (73)4.36 (25)3.04 (26)3.15 (38) Barclays Int Agg Index 8.08 (44)-0.93 (95)0.25 (87)3.57 (73)2.95 (32)2.74 (58) Median 7.99 -0.38 0.70 3.90 2.70 2.88 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Galliard Core Fixed Inc 2.72 (13)2.56 (34)1.51 (34)0.30 (66)0.05 (73)-0.90 (53) Barclays Int Agg Index 2.39 (67)2.28 (71)1.80 (10)0.11 (95)0.09 (61)-1.05 (82) IM U.S. Intermediate Duration (SA+CF) Median 2.51 2.45 1.38 0.37 0.12 -0.90 Performance Review As of September 30, 2019 Galliard Core Fixed Inc NONE 32 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Over Performance Earliest Date Latest Date 0.0 1.0 2.0 3.0 4.0 5.0 Galliard Core Fixed Inc (%)0.0 1.0 2.0 3.0 4.0 5.0 Barclays Int Agg Index (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Galliard Core Fixed Inc 20 0 (0%)20 (100%)0 (0%)0 (0%) Barclays Int Agg Index 20 0 (0%)1 (5%)11 (55%)8 (40%) 2.20 2.40 2.60 2.80 3.00 Return (%)2.19 2.22 2.25 2.28 2.31 2.34 2.37 2.40 Risk (Standard Deviation %) Return StandardDeviation Galliard Core Fixed Inc 2.76 2.35 Barclays Int Agg Index 2.39 2.35 Median 2.68 2.22¾ 2.60 2.80 3.00 3.20 3.40 Return (%)2.07 2.10 2.13 2.16 2.19 2.22 2.25 Risk (Standard Deviation %) Return StandardDeviation Galliard Core Fixed Inc 3.13 2.22 Barclays Int Agg Index 2.74 2.16 Median 2.93 2.09¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk Galliard Core Fixed Inc 0.32 104.73 92.48 0.38 1.14 0.55 0.99 1.27 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 0.39 1.00 1.32 90 Day U.S. Treasury Bill 2.24 22.89 -25.42 1.42 -0.39 N/A 0.05 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Galliard Core Fixed Inc 0.34 106.66 94.00 0.34 1.13 1.00 1.02 1.08 Barclays Int Agg Index 0.00 100.00 100.00 0.00 N/A 0.84 1.00 1.10 90 Day U.S. Treasury Bill 2.10 14.84 -19.31 0.88 -0.84 N/A 0.03 0.01 Performance Review As of September 30, 2019 Galliard Core Fixed Inc NONE 33 Peer Group Analysis - IM U.S. TIPS (SA+CF) Comparative Performance -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Galliard TIPS 0.64 (83)5.76 (84)5.76 (84)3.04 (84)1.94 (95)2.63 (97)2.02 (83) Barclays US TIPS 1-10 Yr 0.60 (90)5.75 (86)5.75 (86)3.00 (91)1.94 (94)2.66 (95)1.95 (94) Median 1.30 7.09 7.09 3.72 2.25 3.32 2.47 -6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Galliard TIPS 5.76 (84)0.39 (76)-0.23 (38)4.75 (95)-0.38 (19)0.59 (86) Barclays US TIPS 1-10 Yr 5.75 (86)0.33 (91)-0.14 (35)4.83 (95)-0.82 (56)0.61 (81) Median 7.09 0.43 -0.52 6.53 -0.79 1.57 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Galliard TIPS 2.49 (86)2.61 (84)-0.08 (23)-0.40 (19)0.63 (81)-0.39 (18) Barclays US TIPS 1-10 Yr 2.53 (75)2.57 (98)-0.05 (7)-0.42 (23)0.61 (86)-0.40 (18) IM U.S. TIPS (SA+CF) Median 2.85 3.20 -0.42 -0.77 0.76 -0.73 Performance Review As of September 30, 2019 Galliard TIPS NONE 34 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Over Performance Under Performance Earliest Date Latest Date -4.0 -2.0 0.0 2.0 4.0 Galliard TIPS (%)-4.0 -2.0 0.0 2.0 4.0 Barclays US TIPS 1-10 Yr (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Galliard TIPS 20 2 (10%)2 (10%)5 (25%)11 (55%) Barclays US TIPS 1-10 Yr 20 2 (10%)0 (0%)2 (10%)16 (80%) 1.80 2.00 2.20 2.40 Return (%)1.98 2.16 2.34 2.52 2.70 2.88 3.06 3.24 3.42 Risk (Standard Deviation %) Return StandardDeviation Galliard TIPS 1.94 2.32 Barclays US TIPS 1-10 Yr 1.94 2.26 Median 2.25 3.23¾ 1.80 2.00 2.20 2.40 2.60 Return (%)2.40 2.56 2.72 2.88 3.04 3.20 3.36 3.52 3.68 Risk (Standard Deviation %) Return StandardDeviation Galliard TIPS 2.02 2.75 Barclays US TIPS 1-10 Yr 1.95 2.64 Median 2.47 3.49¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk Galliard TIPS 0.39 100.37 100.93 -0.03 -0.02 0.19 1.01 1.41 Barclays US TIPS 1-10 Yr 0.00 100.00 100.00 0.00 N/A 0.20 1.00 1.38 90 Day U.S. Treasury Bill 2.18 25.08 -18.96 1.45 -0.20 N/A 0.04 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Galliard TIPS 0.42 100.05 97.41 0.02 0.17 0.40 1.03 1.48 Barclays US TIPS 1-10 Yr 0.00 100.00 100.00 0.00 N/A 0.39 1.00 1.47 90 Day U.S. Treasury Bill 2.59 14.59 -10.21 0.92 -0.39 N/A 0.02 0.01 Performance Review As of September 30, 2019 Galliard TIPS NONE 35 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) Comparative Performance -2.00 0.00 2.00 4.00 6.00 8.00 10.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR VG ST Bond Index (VSCSX) 1.19 (12)6.71 (12)6.71 (12)3.23 (15)2.67 (16)2.85 (17)N/A Barclays US Corp 1-5 Yr Index 1.17 (14)6.78 (11)6.78 (11)3.39 (8)2.86 (6)2.98 (12)2.78 (4) Median 0.87 5.37 5.37 2.49 2.00 2.11 1.89 -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 VG ST Bond Index (VSCSX) 6.71 (12)-0.14 (41)1.55 (27)3.40 (20)N/A N/A Barclays US Corp 1-5 Yr Index 6.78 (11)0.11 (28)1.82 (20)3.33 (21)1.98 (8)2.46 (25) Median 5.37 -0.38 0.85 2.56 1.21 1.64 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 VG ST Bond Index (VSCSX)1.75 (57)2.66 (13)0.97 (44)0.67 (15)0.28 (21)-1.03 (91) Barclays US Corp 1-5 Yr Index 2.09 (20)2.61 (17)0.76 (54)0.71 (8)0.29 (21)-0.80 (65) IM U.S. Intermediate Investment Grade (MF) Median 1.79 1.88 0.80 0.34 0.12 -0.72 Performance Review As of September 30, 2019 VG ST Bond Index (VSCSX) NONE 36 Peer Group Analysis - IM U.S. TIPS (MF) Comparative Performance -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Vanguard Inflation-Protected Secs (VAIPX) 1.42 (14)7.03 (13)7.03 (13)3.57 (14)N/A N/A N/A Bloomberg Barclays U.S. TIPS Index 1.35 (19)7.13 (9)7.13 (9)3.71 (9)2.21 (19)3.29 (19)2.45 (10) Median 0.80 5.71 5.71 2.88 1.76 2.62 1.73 -13.00 -10.00 -7.00 -4.00 -1.00 2.00 5.00 8.00 11.00 14.00 ReturnOct- 2018 To Sep- 2019 Oct- 2017 To Sep- 2018 Oct- 2016 To Sep- 2017 Oct- 2015 To Sep- 2016 Oct- 2014 To Sep- 2015 Oct- 2013 To Sep- 2014 Vanguard Inflation-Protected Secs (VAIPX)7.03 (13)0.23 (55)N/A N/A N/A N/A Bloomberg Barclays U.S. TIPS Index 7.13 (9)0.41 (40)-0.73 (61)6.58 (27)-0.83 (7)1.59 (19) Median 5.71 0.29 -0.43 5.77 -1.90 0.95 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Vanguard Inflation-Protected Secs (VAIPX)2.79 (17)3.19 (45)-0.50 (30)-0.79 (58)0.84 (19)-0.99 (76) Bloomberg Barclays U.S. TIPS Index 2.86 (11)3.19 (44)-0.42 (24)-0.82 (60)0.77 (27)-0.79 (54) IM U.S. TIPS (MF) Median 2.50 3.16 -0.84 -0.72 0.63 -0.75 Performance Review As of September 30, 2019 Vanguard Inflation-Protected Secs (VAIPX) NONE 37 Peer Group Analysis - IM Global Fixed Income (MF) Comparative Performance -7.00 -4.00 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR PIMCO Diversified Income Fund Instl (PDIIX) 1.20 (46)9.52 (19)9.52 (19)N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged) 2.36 (10)10.83 (12)10.83 (12)5.48 (5)4.66 (5)5.77 (3)4.77 (1) Median 1.01 7.65 7.65 3.05 2.29 3.64 2.16 -16.00 -12.00 -8.00 -4.00 0.00 4.00 8.00 12.00 16.00 20.00 ReturnOct- 2018 To Sep- 2019 Oct- 2017 To Sep- 2018 Oct- 2016 To Sep- 2017 Oct- 2015 To Sep- 2016 Oct- 2014 To Sep- 2015 Oct- 2013 To Sep- 2014 PIMCO Diversified Income Fund Instl (PDIIX)9.52 (19)N/A N/A N/A N/A N/A Blmbg. Barc. Global Credit (Hedged)10.83 (12)0.39 (17)3.04 (27)9.19 (25)0.86 (18)6.83 (9) Median 7.65 -1.29 1.02 7.42 -3.85 3.37 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 PIMCO Diversified Income Fund Instl (PDIIX)3.59 (37)5.81 (1)-1.26 (91)2.03 (1)-0.92 (32)N/A Blmbg. Barc. Global Credit (Hedged)3.60 (36)4.71 (6)-0.19 (66)0.98 (8)-0.44 (13)-1.15 (97) IM Global Fixed Income (MF) Median 3.37 3.10 0.35 -0.39 -2.29 0.80 Performance Review As of September 30, 2019 PIMCO Diversified Income Fund Instl (PDIIX) NONE 38 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) Comparative Performance -4.00 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR American Core RE 1.44 (81)6.81 (60)6.81 (60)7.65 (75)7.61 (78)7.96 (85)9.14 (84) American Core RE Policy 1.38 (86)6.16 (87)6.16 (87)7.48 (78)7.59 (80)8.34 (72)9.59 (73) Median 1.80 7.05 7.05 8.35 8.43 9.15 9.97 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 23.00 26.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 American Core RE 6.81 (60)8.50 (66)7.52 (67)9.04 (97)13.98 (69)12.49 (64) American Core RE Policy 6.16 (87)8.82 (59)7.81 (60)10.62 (69)14.71 (62)12.39 (68) Median 7.05 9.04 8.29 11.32 15.45 12.78 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 American Core RE 1.53 (31)1.74 (76)1.94 (27)2.19 (47)2.09 (66)2.23 (45) American Core RE Policy 1.34 (66)1.69 (81)1.62 (62)2.09 (54)2.13 (61)2.17 (55) IM U.S. Open End Private Real Estate (SA+CF) Median 1.46 1.99 1.76 2.10 2.22 2.21 Performance Review As of September 30, 2019 American Core RE NONE 39 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Under Performance Earliest Date Latest Date 6.0 9.0 12.0 15.0 American Core RE (%)6.0 9.0 12.0 15.0 American Core RE Policy (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count American Core RE 20 0 (0%)0 (0%)6 (30%)14 (70%) American Core RE Policy 20 0 (0%)1 (5%)17 (85%)2 (10%) 7.28 7.56 7.84 8.12 8.40 8.68 Return (%)0.40 0.60 0.80 1.00 1.20 1.40 Risk (Standard Deviation %) Return StandardDeviation American Core RE 7.61 0.64 American Core RE Policy 7.59 0.58 Median 8.43 1.12¾ 8.96 9.24 9.52 9.80 10.08 10.36 Return (%)1.36 1.44 1.52 1.60 1.68 1.76 1.84 1.92 2.00 Risk (Standard Deviation %) Return StandardDeviation American Core RE 9.14 1.64 American Core RE Policy 9.59 1.48 Median 9.97 1.87¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk American Core RE 0.71 100.19 N/A 4.84 0.02 7.66 0.36 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 6.90 1.00 0.00 90 Day U.S. Treasury Bill 0.85 20.67 N/A 4.19 -6.90 N/A -0.35 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk American Core RE 1.02 95.53 N/A 0.69 -0.41 4.16 0.88 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 N/A 4.52 1.00 0.00 90 Day U.S. Treasury Bill 1.84 10.35 N/A 3.11 -4.52 N/A -0.23 0.00 Performance Review As of September 30, 2019 American Core RE NONE 40 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) Comparative Performance -4.00 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Intercontinental 2.50 (25)8.32 (30)8.32 (30)9.85 (10)10.50 (10)11.20 (21)11.74 (26) NCREIF Fund Index 1.31 (87)5.60 (90)5.60 (90)7.13 (83)7.31 (82)7.99 (84)9.35 (78) Median 1.80 7.05 7.05 8.35 8.43 9.15 9.97 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 23.00 26.00 ReturnOct-2018 To Sep-2019 Oct-2017 To Sep-2018 Oct-2016 To Sep-2017 Oct-2015 To Sep-2016 Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Intercontinental 8.32 (30)11.40 (8)11.82 (7)13.30 (23)13.96 (69)14.10 (30) NCREIF Fund Index 5.60 (90)8.68 (63)7.66 (62)10.08 (83)14.93 (61)12.40 (68) Median 7.05 9.04 8.29 11.32 15.45 12.78 1 QtrEndingJun-2019 1 QtrEndingMar-2019 1 QtrEndingDec-2018 1 QtrEndingSep-2018 1 QtrEndingJun-2018 1 QtrEndingMar-2018 Intercontinental 1.45 (53)1.98 (55)2.14 (20)2.52 (23)2.89 (27)2.79 (14) NCREIF Fund Index 1.00 (90)1.42 (84)1.76 (51)2.09 (54)2.05 (67)2.20 (52) IM U.S. Open End Private Real Estate (SA+CF) Median 1.46 1.99 1.76 2.10 2.22 2.21 Performance Review As of September 30, 2019 Intercontinental NONE 41 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years Over Performance Earliest Date Latest Date 3.0 6.0 9.0 12.0 15.0 18.0 Intercontinental (%)3.0 6.0 9.0 12.0 15.0 18.0 NCREIF Fund Index (%) Over Performance Under Performance 0.0 25.0 50.0 75.0 100.0Return Percentile Rank12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 9/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Intercontinental 20 10 (50%)10 (50%)0 (0%)0 (0%) NCREIF Fund Index 20 0 (0%)0 (0%)18 (90%)2 (10%) 6.00 8.00 10.00 12.00 Return (%)0.30 0.60 0.90 1.20 1.50 1.80 2.10 2.40 2.70 Risk (Standard Deviation %) Return StandardDeviation Intercontinental 10.50 2.15 NCREIF Fund Index 7.31 0.71 Median 8.43 1.12¾ 8.20 9.02 9.84 10.66 11.48 12.30 Return (%)1.15 1.38 1.61 1.84 2.07 2.30 2.53 2.76 2.99 Risk (Standard Deviation %) Return StandardDeviation Intercontinental 11.74 2.75 NCREIF Fund Index 9.35 1.57 Median 9.97 1.87¾ TrackingError UpMarketCapture DownMarketCapture Alpha InformationRatio SharpeRatio Beta DownsideRisk Intercontinental 1.86 142.41 N/A -1.52 1.62 3.68 1.64 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 5.73 1.00 0.00 90 Day U.S. Treasury Bill 0.98 21.46 N/A 3.70 -5.73 N/A -0.30 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Intercontinental 2.45 124.85 N/A 4.02 0.92 3.50 0.81 0.00 NCREIF Fund Index 0.00 100.00 N/A 0.00 N/A 4.19 1.00 0.00 90 Day U.S. Treasury Bill 1.93 10.61 N/A 2.94 -4.19 N/A -0.22 0.00 Performance Review As of September 30, 2019 Intercontinental NONE 42 Fund Information Type of Fund:Direct Vintage Year:2014 Strategy Type:Other Management Fee:1.35% of invested equity capital Size of Fund:-Preferred Return:7.00% Inception:09/05/2014 General Partner:CDL Levered General Partner, Ltd. Final Close:9/5/2015 expected Number of Funds: Investment Strategy:High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower-middle-market companies. The Fund will seek to enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Capital Committed:$2,000,000 Capital Invested:$2,955,307 Management Fees:$45,005 Expenses:$193,671 Interest:- Total Contributions:$2,955,307 Remaining Capital Commitment:$282,673 Total Distributions:$2,230,505 Market Value:$1,171,197 Inception Date:10/14/2014 Inception IRR:7.7 TVPI:1.1 Cash Flow Analysis Net Asset Value Distribution Contributions $0.0 $780,000.0 $1,560,000.0 $2,340,000.0 $3,120,000.0 $3,900,000.0 ($780,000.0) 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 10/18 4/19 9/19 Private Equity Fund Overview Crescent Direct Lending Fund As of September 30, 2019 43 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 Capital Committed:$2,000,000 Capital Invested:$1,264,665 Management Fees:$8,327 Expenses:$10,567 Interest:- Total Contributions:$1,264,665 Remaining Capital Commitment:$888,078 Total Distributions:$232,265 Market Value:$1,121,314 Inception Date:03/13/2018 Inception IRR:8.8 TVPI:1.1 Cash Flow Analysis Net Asset Value Distribution Contributions $0.0 $360,000.0 $720,000.0 $1,080,000.0 $1,440,000.0 $1,800,000.0 ($360,000.0) 3/18 6/18 9/18 12/18 3/19 6/19 9/19 Private Equity Fund Overview Crescent Direct Lending II Fund As of September 30, 2019 44 Total Fund Policy Allocation Mandate Weight (%) Jan-1976 S&P 500 Index 65.00 Blmbg. Barc. U.S. Aggregate Index 30.00 MSCI EAFE Index 5.00 Oct-2003 S&P 500 Index 60.00 Blmbg. Barc. U.S. Aggregate Index 30.00 MSCI EAFE Index 10.00 Sep-2006 S&P 500 Index 60.00 Bloomberg Barclays Intermed Aggregate Index 40.00 Oct-2009 Russell 3000 Index 50.00 Bloomberg Barclays Intermed Aggregate Index 25.00 MSCI EAFE Index 15.00 Bloomberg Barclays U.S. TIPS Index 5.00 NCREIF Property Index 5.00 Oct-2010 Russell 3000 Index 50.00 Bloomberg Barclays Intermed Aggregate Index 20.00 MSCI EAFE Index 15.00 Bloomberg Barclays U.S. TIPS Index 5.00 NCREIF Fund Index-Open End Diversified Core (EW)10.00 Total Equity Policy Allocation Mandate Weight (%) Jan-1970 S&P 500 Index 90.00 MSCI EAFE Index 10.00 Oct-2003 S&P 500 Index 85.00 MSCI EAFE Index 15.00 Sep-2006 S&P 500 Index 100.00 Oct-2009 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 Total Domestic Equity Policy Allocation Mandate Weight (%) Jan-1926 S&P 500 Index 100.00 Oct-2009 Russell 3000 Index 100.00 Total Fixed Income Policy Allocation Mandate Weight (%) Nov-2000 Blmbg. Barc. U.S. Aggregate Index 100.00 Sep-2006 Bloomberg Barclays Intermed Aggregate Index 100.00Vanguard Total Stock Market Policy Allocation Mandate Weight (%) Jun-2003 MSCI US Broad Market Index 100.00 Feb-2013 CRSP U.S. Total Market TR Index 100.00 American Realty Policy Allocation Mandate Weight (%) Oct-2007 NCREIF Property Index 100.00 Oct-2010 NCREIF Fund Index-Open End Diversified Core (EW)100.00 Benchmark Historical Hybrid Compositions Total Fund As of September 30, 2019 45 Compliance ChecklistTotal FundAs of September 30, 2019Winter Springs GETotal Fund Compliance:Yes No N/A1. The Total Plan return equaled or exceeded the 7.75% 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:Yes No N/A1. 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:Yes No N/A1. 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 complianceYes No N/A Yes No N/A Yes No N/A Yes No N/A1. 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.Yes No N/A Yes No N/A Yes No N/A Yes No N/A1. 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:Vanguard Total Galliard TIPS VG Short BDRBC GlobalIntercontinental PIMCOManager Compliance:Vanguard Infl-prot.American RE46 Estimated Annual Fee (%) Market Value ($) Estimated Annual Fee ($) Fee Schedule Vanguard Total Stock Market (VITSX)0.04 27,889,255 11,156 0.04 % of Assets Total Domestic Equity 0.04 27,889,255 11,156 RBC Global (Voyageur)0.95 8,419,165 79,982 0.95 % of Assets Total International Equity 0.95 8,419,165 79,982 Galliard Core Fixed Income 0.25 5,095,727 12,739 0.25 % of Assets Galliard TIPS 0.15 1,282,666 1,924 0.15 % of Assets Vanguard Inflation-Protected Secs (VAIPX)0.10 1,059,563 1,060 0.10 % of Assets Vanguard Short Term Bond Index (VSCSX)0.12 17,900 21 0.12 % of Assets Total Domestic Fixed Income 0.21 7,455,856 15,744 PIMCO Diversified Income Fund Instl (PDIIX)0.75 1,875,993 14,070 0.75 % of Assets Total Global FI 0.75 1,875,993 14,070 Crescent Direct Lending Fund 1.35 1,171,197 15,811 1.35 % of Assets Crescent Direct Lending II Fund 0.75 1,121,314 8,410 0.75 % of Assets Total Other Fixed Income 1.06 2,292,511 24,221 Intercontinental 1.10 3,541,188 38,953 1.10 % of Assets American Core Realty Fund 1.10 2,080,151 22,882 1.10 % of Assets Total Real Estate 1.10 5,621,339 61,835 Receipt & Disbursement 519,926 - Total Fund 0.38 54,074,045 207,008 Winter Springs General Employees General Plan and Trust Fee Analysis As of September 30, 2019 47 Disclosures Neither AndCo, 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. Disclosures Total Fund As of September 30, 2019 48 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 (TVPI) - 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. 49 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 for a 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. 50 CHICAGO | CLEVELAND | DALLAS | DETROIT | ORLANDO | PITTSBURGH | RENO AndCo Consulting | 4901 Vineland Road | Suite 600 | Orlando, FL 32811 | (844) 44-ANDCO | AndCoConsulting.com Our firm was formed with the mission of providing the highest level of institutional investment consulting services at a competitive fee. Today we are a better, stronger and a more experienced firm than we were when initially engaged by your Board. The institutional marketplace has changed dramatically over the years, and true independence is now recognized as the prudent approach. We are pleased to have been at the forefront of this movement. We are aware of the challenges in the current environment that are facing pension plans across the state and the nation, and we have always strived to provide the highest level of institutional consulting services at a competitive fee. We have been honored to serve the City of Winter Springs General Employees’ Retirement System since July 2006. Through our open and ongoing communication and reporting, we have assisted the Advisory Board and its members in prudently recommending and facilitating the implementation of successful investment strategy through challenging market cycles. We would like to highlight a few of the more recent accomplishments of the investment program: The Total Plan’s return exceeded the Plan’s assumed rate of return for 7 of the last 10 individual fiscal years (the Plan utilizes an actuarial smoothing methodology which effectively increased the actual success rate as the system has accumulated excess returns to the required ROR). Both prescribed asset allocation and actual Plan results compare most favorably in public fund peer group universe for all cumulative, annualized performance periods ended September: 3 years: Top 3rd percentile 5 years: Top 2nd percentile 7 years: Top 1st percentile 10 years: Top 1st percentile Major Historical Policy Level Changes: Providing ongoing cycle aware, Strategic and Tactical asset allocation strategy Revamped the stylistic approach deployed for the Domestic Equity Portfolio Diversified the Domestic Fixed Income Portfolio with alternative Global Bond strategy Introduced Private Real Estate Portfolio, both Core, and Core Plus Introduced Private Debt into the Portfolio Reviewed other alternative strategies as potential investment in the Portfolio To: City of Winter Springs General Employees’ Retirement System From: Dave West, CFA Date: November 6th, 2019 Re: Summary of Proposed Fee Revisions AndCo Consulting | 4901 Vineland Road | Suite 600 | Orlando, FL 32811 | (844) 44-ANDCO | AndCoConsulting.com As we have worked to improve our clients’ investment portfolios over the past years, we have also worked to improve our firm, adding talented and qualified professionals and increasing our technological capabilities. Our objective is to be able to provide the highest level of service and industry knowledge to each of our clients. Our firm provides institutional investment consulting services on a hard dollar, full retainer, flat- fee basis for our clients. While the following fee proposal represents an increase to our current hard dollar fee, this new proposal still reflects a reduction in the proposed rate for our services with consideration of the asset growth and services provided to the Plan. Our retainer fee would include all components of our consulting services and we would guarantee this proposed fee for 3 years. Existing Fee Contract Proposed Fee Contract Annual Retainer Total Fee $26,000.00 Annual Retainer Total Fee* $31,000.00 (01/01/17) (09/30/19) Plan Market Value $54,074,045 Fee as a Percentage (%) 0.057% *Fee increase effective 10/1/2019 We value the relationship with the City of Winter Springs Retirement Trust Fund and look forward to a continued successful relationship. While every City sponsored DB Retirement System is unique, the following Systems are of similar asset size, engagement, and complexity. Retirement System name, contacts, and fee identification provided upon request with Plan’s permission. Florida Area Retirement System Consulting Fee Police Retirement System 1 $ 30,000.00 Police Retirement System 2 $ 30,000.00 Police & Fire Retirement System 3 $ 43,600.00 Firefighters Retirement System 4 $ 33,000.00 Police Retirement System 5 $ 48,000.00 General Employees Retirement System 6 $ 35,000.00 Police & Fire Retirement System 7 $ 35,000.00 Police & Fire Retirement System 8 $ 43,000.00 SPECIALTIES • Investment Policy Development • Asset Allocation • Manager Research • Ongoing Performance Monitoring • Service Provider Evaluation • Trustee Education Strive to avoid all conflicts of interest: • No Soft-Dollar Compensation • No Broker/Dealer Affiliations • No Selling Investment Products • No Pay-To-Play COMPLETE INDEPENDENCE AndCo Consulting | AndCoConsulting.com | Chicago | Cleveland | Dallas | Detroit | Orlando | Pittsburgh | Reno Putting clients first. AndCo is an independent institutional investment consulting firm that advises over 680 institutional clients with approximately $92 billion in assets under advisement. A LOOK AT OUR INDEPENDENT STRUCTURE Throughout our firm’s growth, we have recognized the value of experienced and highly educated professionals and have built a team of talented consultants, researchers, and analysts. Our seasoned team of 91 professionals includes 38 consultants who average over 20 years of experience, 22 CFA Charterholders, and 33 advanced degree holders. AndCo is a 100% employee-owned limited liability company. We have no parent or affiliated companies. Additionally, we have no economically beneficial relationships with any bank, broker/dealer, investment manager, insurance company, actuary, or other vendor. Providing investment and fiduciary consulting services is our firm’s only line of business. We derive 100% of our revenue from providing these services to our institutional clients. Mission: To represent the sole interest of our clients by redefining independence. Vision: To be a transformational organization viewed as the leader in our industry. ETHICAL SERVICES We treat our clients with the respect and integrity they deserve. Our independent business model helps us maintain this foundation. We have no outside relationships with other vendors, nor do we have a parent company. We are a fiduciary to all our clients without exception or caveat. ATTENTIVE CLIENT SERVICE Our clients receive individualized attention and custom solutions tailored to their unique needs. Our consultants have frequent interaction with their clients. We value each of our client relationships and never ignore a smaller client for a larger one. ROBUST RESOURCES Our clients receive experienced consulting, performance analysis, and manager recommendations. Our consultants average over 20 years of experience and have worked with prominent institutional investors across the country. PUBLIC CORPORATE TAFT-HARTLEY ENDOWMENTS & FOUNDATIONS OTHER TOTAL PLAN TYPES $62.3 $13.5 $12.4 $1.5 $2.5 $92.2 ASSETS AS OF 06/30/2019 (in Billions) PLANS 452 132 167 50 73 874 FOR INFORMATIONAL PURPOSES ONLY AND NOT INTENDED FOR GENERAL PUBLIC DISTRIBUTION Assets are approximate and as of 06/30/2019. All Employee Count as 10/28/19 PUBLIC 67.6% TAFT-HARTLEY13.5% CORP. 14.7% E&F1.6%OTHER 2.7% Serving Our Clients With Independence, Objectivity & Transparency AndCo Consulting | 4901 Vineland Road | Suite 600 | Orlando, FL 32811 | (844) 44-ANDCO | AndCoConsulting.com ENHANCED CLIENT SERVICE & RESOURCES AndCo’s resources include a dedicated research group, a team of investment consultants with an average of over 20 years’ experience, client solutions team to support client facing consultants, and advanced technological capabilities and software. AndCo also has a dedicated management team consisting of professionals in compliance, finance, operations, and consulting services further supporting each department and ultimately each client. ENHANCED CLIENT SERVICE MODEL RESEARCH GROUP RETIREMENT SOLUTIONS GROUP OUR CLIENTS CLIENT SOLUTIONS GROUPCONSULTANTS INFORMATION TECHNOLOGY & SOFTWARE Jason Purdy Director of IT Jamie Utt Jerry Camel Solutions Architect CLIENT SOLUTIONS GROUP Misha Bell Amy Foster David Gough Meghan Haines Kim Hummel Mary Ann Johnson Rosemarie Kieskowski Yoon Lee-Choi Donnell Lehrer Annie Lopez Grace Niebrzydowski Junyan Peng Jeff Pruniski Albert Sauerland Donna Sullivan Brooke Wilson John Rodak, CIPM® Head of Onboarding/Data Mgt. EXECUTIVE COMMITTEE Mike Welker, CFA® President/CEO Bryan Bakardjiev, CFA® Executive Director/Interim CCO Troy Brown, CFA® Executive Director Steve Gordon Executive Director David Ray Executive Director Kim Spurlin, CPA Executive Director RESEARCH GROUP Philip Schmitt, CIMA Research Director Evan Scussel, CFA®, CAIA® Research Director Julie Baker, CFA® Equity Team Ben Baldridge, CFA®, CAIA® Fixed Income Team Austin Brewer, CFA® Asset Strategies Team Zac Chichinski, CFA®, CIPM® Equity Team Josue Christiansen Equity Team Justin Ellsesser, CFA®, CAIA® Equity Team Joseph Ivaszuk Operational Due Diligence David Julier Real Assets Team Jeffrey Karansky Equity Team Tim Kominiarek, CAIA® Head of Real Asset Investments Kevin Laake, CFA® Equity Team Rob Mills, CAIA® Real Assets Team Matthew Ogren Fixed Income Team Kadmiel Onodje, CAIA® Asset Strategies Team Dan Osika, CFA® Asset Strategies Team Kai Petersen, CFA® Asset Liability Consultant Jeremy Fisch Associate Elizabeth Wolfe Associate DIRECTOR OF HUMAN RESOURCES Rachel Brignoni, MHR COMPLIANCE Sara Searle Deputy Chief Compliance Officer RETIREMENT SOLUTIONS GROUP Jacob Peacock Director of Retirement Solutions Joe Carter Al DiCristofaro Paul Murray FOR INFORMATIONAL PURPOSES ONLY AND NOT INTENDED FOR GENERAL PUBLIC DISTRIBUTION © PFM 1 City of Winter Springs General Employees Plan Introduction to PFM Asset Management PFM Asset Management LLC 300 S. Orange Avenue Suite 1170 Orlando, FL 32801 407.648.2208 pfm.com Khalid Yasin, CIMA, CHP, Director Sean Gannon, CTP, Senior Analyst Presented By October 29, 2019 © PFM 2 PFM Asset Management LLC Data as of June 30, 2019, unless stated otherwise *Including legacy or acquired firms. Providing services since 1992* Conflict-free advice: ‒No custody of assets ‒No fees from third parties ‒No profit from underlying funds ‒No commissions or directed brokerage ‒No soft dollars 36 CFA Charter holders as of August 31, 2019 $140.8 billion in total assets advised, including $102.8 billion in discretionary assets under management as of June 30, 2019. ‒$12.6 billion in discretionary outsourced chief investment officer (OCIO) mandates PFM’s Assets Under Management and Advisement (in billions) © PFM 3 PFM‘s Discretionary Scope of Fiduciary Responsibilities Traditional Consultant •Provides Strategic Advice •Investment Policy Development •Manager Search & Evaluation •Portfolio Reporting •Performance and Attribution Analysis •Recommends Only *Outsourced Chief Investment Officer PFM OCIO* •Provides Strategic Advice •Investment Policy Development •Manager Search and Evaluation •Portfolio Reporting •Performance and Attribution Analysis •Investment Manager Hire/Fire •Tactical Asset Allocation •Portfolio Structure and Positioning •Active vs Passive Allocation •Rebalancing/Cash Flow management •Custodian Oversight and reconciliation © PFM 4 Our Partnership with Clients Provides a Comprehensive Solution •Establish goals •Identify risk/return parameters •Build custom asset allocation •Develop Investment Policy Strategic Portfolio Planning & Design •Determine portfolio positioning •Decide on active/passiveexposure •Select managers or funds •Implement dynamic/tactical decisions Portfolio Management •In-person meetings •Transparent reporting •Attribution analysis •Active rebalancing •Ongoing client education programs Strategic Portfolio Review •Asset-Liability analysis •Work with Custodian © PFM 5 PFM OCIO Composite Performance (as of June 30, 2019) 12+ years of strong and consistent GIPS®performance versus benchmarks The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate. Data shown is net of underlying manager fees, but prior to the deduction of investment advisory fees. Global Investment Performance Standards (“GIPS ®”)-compliant composite presentations are available upon request. For important disclosure information please visit pfm.com/disclosures. Benchmark source: Bloomberg. All benchmarks represent total returns for the noted periods, with the exception of the ICE BofAML Constant 5-Year Maturity Treasury Index, which represents a book value return by using the rolling 60-month moving average yield. As the stable value benchmark is an equally weighted rolling 60-month moving average of a 5-year Treasury security for each month, the 2.54 year duration noted above represents a weighted average maturity (“WAM”). Strategy/Benchmark Average Annual Total Returns No. of Accounts Assets (in $ millions) for periods ended June 30, 2019 2Q19 1 Year 2 Years 3 Years 4 Years 5 Years 7 Years 9 Years 10 Years PFM Multi Asset Class 75:25 Composite 3.39%5.94%8.13%9.70%7.53%6.60%9.30%4 49.2 49% Russell 3000, 26% MSCI ACWI ex US, 25% Barclays Aggregate 3.66%7.04%8.00%10.00%7.38%6.43%9.15% PFM Multi Asset Class 70:30 Composite 3.36%6.32%7.93%9.57%7.60%6.78%9.19%9.67%10.19%25 1443.6 46% Russell 3000, 24% MSCI ACWI ex US, 30% Barclays Aggregate 3.64%7.17%7.76%9.51%7.15%6.24%8.75%9.29%9.65% PFM Multi Asset Class Program Total Composite Assets Under Management 297 9,148.1 PFM MULTI-ASSET CLASS COMPOSITES The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate. Data shown is net of underlying mutual fund fees, but prior to the deduction of PFM's investment advisory fee. GIPS compliant composite presentations are available upon request. © PFM 6 PFM OCIO Proposed Fees Below is PFM’s standard fee schedule for co-fiduciary responsibility to provide discretionary investment management within Board-approved investment policy parameters: For the City of Winter Springs, we offer to cap our fee at 0.25% (25 basis points) Based on fund assets of $53,864,258 (as of June 30, 2019), PFM’s proposed advisory fee would be: $134,660* Managed Assets Percent Basis Points (bps) First $20 million 0.40%40 bps Next $30 million 0.25%25 bps Next $50 million 0.20%20 bps Over $100 million 0.15%15 bps *This is the only fee PFM will receive and includes all the discretionary OCIO services outlined on p. 3-4, including in-person client reviews, trustee education and shared co-fiduciary responsibilities. © PFM 7 No Conflict of Interest –PFM takes no custody of assets, no fees or soft dollars from money managers, commissions and no double- dipping in fees from proprietary products Co-Fiduciary Responsibility –PFM takes responsibilities beyond a traditional consultant by implementing Board Policies more timely Customized Investment Portfolio –built collaboratively with your unique needs in mind Proven, Value-Added Investment Provider –history of consistent performance, out-performing benchmarks Value for Fees Paid –incorporate both active and passive strategies; dynamically allocate across asset classes Safety, Compliance and Transparency –culture focused on keeping clients informed and their assets safe Client Education & Reporting –offer tailored educational opportunities and robust portfolio reporting capabilities Ideally Suited to Serve the Pension Board © PFM 8 Disclosures A B O U T P F M PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. Financial advisory services are provided by PFM Financial Advisors LLC and Public Financial Management, Inc. Both are registered municipal advisors with the Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”) under the Dodd-Frank Act of 2010. Investment advisory services are provided by PFM Asset Management LLC, which is registered with the SEC under the Investment Advisers Act of 1940. Swap advisory services are provided by PFM Swap Advisors LLC, which is registered as a municipal advisor with both the MSRB and SEC under the Dodd-Frank Act of 2010, and as a commodity trading advisor with the Commodity Futures Trading Commission. Additional applicable regulatory information is available upon request. Consulting services are provided through PFM Group Consulting LLC. Institutional purchasing card services are provided through PFM Financial Services LLC. PFM’s financial modeling platform for strategic forecasting is provided through PFM Solutions LLC. For more information regarding PFM’s services or entities, please visit www.pfm.com. © PFM 9 Thank you!