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Home My WebLink About2012 11 13 Regular 600 Investment Return Report Winter Springs General Employees ■ General Plan and Trust Investment Performance Review 3rd Quarter 2012 Preliminary report. Intercontinental market value based off return provided by the company. Real estate index returns are not yet available. ■ THE BOGDAHN GROUP. W W W.$O G D A H N G R O U P.C O M sew/Wing your investment and fiduciary decisions The Market Environment Plan Investment Performance Fiscal Year Ended: September 2012 Portfolio Attribution (Reference pages 23-26 of The Bogdahn Group September 2012 PRELIMINARY Report) • Plan investment results for the fiscal year ended September 2012 were very strong with investments generating (18.99% Net Estimated), well in excess of the required actuarial rate of return for the year. Total Plan results placed in the top 35th percentile of peers. Investment success was largely attributable to strong equity markets, a bull market investment environment arguably driven by anticipation of better times emanating from global policy of easy money, and various quantitative easing programs implemented both domestically and abroad during the year. Despite a softer than usual recovery, corporations continued to surprise to the upside with record earnings growth further fueling optimism in equities. Fed policy, clearly intent on making risk free assets unattractive, drove credit spreads tighter as investors reached for yield, resulting in sizeable returns for lower quality fixed income investments. U.S. corporations continue to hold record levels of cash on the balance sheet. • Plan assets earned ($4,394,980 net estimated)from investments for the fiscal year,with strong September results($ 1,531,664 )contributing meaningfully to Plan assets. • All active management strategies in place for the full fiscal year outperformed benchmarks except the Dalton All Cap Value discipline, despite another challenging period for active management. Passive benchmarks as a style approach have performed well as markets rotated through periods where short term "top-down" macro events drove market sentiment. • Investment diversification to Real Estate and Global bonds continued to influence results positively. What helped? • Equities were the primary driver of the high absolute level of returns. • The program continues to receive a performance boost from the manager allocations to Real Estate which continues to deliver strong returns for year(12.75%estimated) • Domestic fixed income performance was ahead of benchmark for the quarter and fiscal year to date; diversification into Global Bonds adding to results. • The RBC International equity portfolio continues to be the Plan's best active manager relative to benchmarks (24.7%vs. 14.3%),top 2nd percentile of peers. What hurt? • Active management performance was below benchmarks for DGHM Recommendations: • Continue review of indexing alternatives THE (� BOGDAHN GROUP 2 Page Intentionally Left Blank 3 3rd Quarter 2012 Market Environment THE 4 \ BOGDAHN GROUP The Market Environment Major Market Index Performance As of September 30,2012 • What a difference a year makes. For the equity markets, the year-to-date Quarter Performance performance through September is the best nine months in a calendar year MSCI AcWXuS _ 7.5% since 2009. After the negative performance in the second quarter, the MSCI EAFE _ 7.0% markets rebounded in the third quarter. Year-to-date through September MSCI Emerg Mkts 7.9% 30th, the S&P 500, Russell 1000, Russell 2000, and MSCI EAFE indexes - returned +16.4%, +16.3%, +14.2%, and +10.6%, respectively. In general, S&P 500 6.4% investors appeared to have overlooked the mixed economic data during the Russell 3000 _ 6.2% quarter, and focused more on the perceived positive impacts from additional Russell 1000 6.3% liquidity measures from central bank policies both in the United States and Russell MidCap _ 5.6% Europe. In early September, the President of the European Central Bank Russell 2000 5.3% (ECB), Mario Draghi, announced that the ECB had agreed on a new bond - buying program to help stabilize the region. Prior to this announcement, Barclays US Agg � 1.6% comments from European officials moved the US markets around almost Barclays US Tsy 0.6% daily depending on the perceived outcome. In addition to market participants' Barclays US TIPS _ 2.1% focus on the comments from Europe, investor sentiment fluctuated on the Barclays MBS 1.1% anticipation of what the US Federal Reserve (Fed)would do next. After some Barclays Corp IG _ 3.8% head fakes, the Fed announced additional quantitative easing measures to supposedly help the employment picture. In addition to the extension of 3-Month T-Bill j 0.0% Operation Twist that was announced in June, the Fed announced on 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% September 13th that it will buy $40 billion of mortgage-backed securities per month. The Fed also stated that it will keep the fed funds target near zero until at least mid-2015 instead of late 2014. 1-Year Performance MSCI ACWXUS 15.0%_IMI • International equity markets continued June's trend of strong performance MSCI EAFE 14.3% into the third quarter. Like the US equity indexes, the international equity MSCI Emerg Mkts 17.3% indices recorded positive performance in every month during the quarter. _ Developed markets, represented by the MSCI-EAFE Index, were up +7.0% S&P 500 30.2% for the quarter and emerging markets posted slightly better returns of+7.9%. Russell 3000 30.2% In general, the USD depreciated, benefitting US investors' overseas assets. Russell 1000 30.1% Russell MidCap 28.0% • The Barclays U.S. Aggregate Bond Index finished the third quarter with a Russell 2000 31.9% return of +1.6%. However, the positive return was not strong enough to reverse the downward trend of the trailing one-year return which fell 230 Barclays US Agg _ 5.2% basis points (bps) to 5.2%. From a sector perspective, corporate bonds and Barclays US Tsy 3.0% mortgage-backed securities (MBS) outperformed U.S. Treasuries during the Barclays US TIPS 9.1% quarter. This has been the trend for 2012 as corporate bonds and MBS have Barclays MBS 3.7% outperformed duration-matched Treasuries by 604 bps and 115 bps, Barclays Corp IG 10.8% respectively. 3-Month T-Bill J 0.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Source:Morningstar DirectTHE BOGDAHN 5 GROUP The Market Environment Domestic Equity Style Index Performance As of September 30,2012 • There was not a lot of variation in the performance among the domestic Quarter Performance - Russell Style Series equity indexes for the quarter or trailing one-year periods. The largest 3000 Value 6.4% dispersion during the quarter was among the growth indexes (130 basis 3000 Index 6.2% points); the Russell 1000 Growth Index returned +6.1% and the Russell 3000 Growth 6.0% 2000 Growth Index returned +4.8%. A large contributor to the difference in the two indexes was the weighting and performance of the Information - Technology sector. In the Russell 1000 Growth, the sector contributed 267 1000 Value 6.5% bps based on an average weighting of 32.1% compared to a contribution of 1000 Index 6.3% 89 bps based on an average weighting of 22% for the Russell 2000 Growth. woo Growth 6.1% Apple has been a significant contributor to the performance of the Russell _ 1000 Growth and Russell 3000 Growth Indexes (as well as the S&P 500, MidCap Value 5.8% Russell 1000, and Russell 3000 indexes). Based on Apple's 8.3% and 7.7% MidCap Index 5.6% average weighting in the Russell 1000 Growth and Russell 3000 Growth MidCap Growth 5.3% indexes during the quarter, the stock contributed 117 bps and 108 bps to the indexes, respectively. Apple's stock price has gained +14.7% and - +75.7% for the third quarter and trailing twelve months, respectively. 2000 Value 5.7% 2000 Index 5.3% • GICS sector performance varied by capitalization and style, and there were 2000 Growth 4.8% no broad themes to which sectors performed the best as in past quarters. 0.0% 2.0% 4.0% 6.0% 8.0% Financials outperformed in the Russell 1000 Value and Russell 3000 Value indexes, while Materials outperformed in the Russell 2000 Value Index. 1-Year Performance - Russell Style Series Telecom Services performed the best in the Russell 2000 Growth Index. 3000 Value 31.1% 3000 Index 30.2% • In a reversal from the second quarter, "value" outperformed "growth" for the - quarter and the one-year periods, regardless of capitalization. Large cap 3000 Growth . 29 outperformed small cap. As a continuation from the second quarter, "mega cap" companies, which is defined as those companies with a market 1000 Value 30.9% capitalization greater than $100 billion, outperformed the other market 1000 Index 30.1% capitalizations break points in the Russell 1000 and Russell 3000 Indexes. loon Growth 29.2% Similar to the relative performance in the large cap indexes, the larger capitalization companies in the Russell 2000 Indexes outperformed. Micro MidCap Value 29.3% cap companies, which is defined as those companies with a market cap MidCap Index zs.o°r° less than $500 million, underperformed across all indexes. - MidCap Growth 26.7% 2000 Value 32.6% 2000 Index 31.9% 2000 Growth 31.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Source:Morningstar Direct THE fC, BOGDAHN 6 GROUP The Market Environment GICS Sector Performance & (Quarter-End Sector Weight) As of September 30,2012 Russell 1000 •Quarter 01-Year • Compared to the second quarter, market volatility declined. In the Energy(10.5%) 10.2% Russell 1000, there were three (3) days in which the index returned - 1 25.0% 0 greater than 2% and there were no days where the index lost more Materials(3.8%) 6.1 r° 26.9% than 2% versus seven and seven days, respectively, in the prior 3.6% quarter. While the volatility appeared to decline in the quarter based on Industrials(10.4%) 28.1% the number of days that were +1- 2%, the dispersion from the best and Consumer Disc(10.0%) - 7.9% worst daily return was still large and the representative days were only 131.2%o three days a part; the worst daily return was -1.9% on July 24th and the Consumer Staples - 3.8% best daily return was +3.6% on July 27th. As expected, the volatility for (12.1%) 22.3% 6.60/0 the small cap Russell 2000 Index was greater than the other indexes Health Care(11.8%) 30.0°r° during the quarter. There were eight days where the index returned Financials(15.5%) - 6.2% greater than 2% and four days in which the index returned less than - 133.1%o 2%. The best day was +3.5% (on Jul 27th) and the worst day was - Info Technology 6.9% y ( July ) y 9Y(19.2%) I 26.7% 3.0% (on July 24th). Telecom Services(3.1%) 34.4% • For the quarter, regardless of capitalization, each GICS sector was o �- °r° positive within the Russell 1000 and Russell 2000 Indexes. Even utilities(3.6%> .z I 14.1% though economic growth globally is expected to remain low for the 0.0% 5.0% 10.0% 15'0% 20.0% 25'0% 30.0% 35.0% 40.0% foreseeable future, the Energy sector was the best performer in the Russell 1000 Index. Although Tesoro was one of the top three Russell 2000 ■Quarter 01-Year performing stocks in the index (+68.4%), its contribution to sector ° 75% performance was minimal due to its reduced weighting in the index. Energy(6.0%) 14.7% While Chevron and Exxon Mobil returned +11.4% and +7.6% during Materials(5.0%) 12.9% the quarter, the two stocks accounted for nearly 39% of the sector's 1 34.3% contribution to the index. As indicated in the chart, the top performing Industrials(14.8%) 3.5°r° 1 28.8°x° sector in the Russell 2000 Index during the quarter was Telecom 73% Services. Of the twenty-eight companies in the sector, fourteen names Consumer Disc(3.6%) 33.9% generated double-digit performance. Consumer Staples -0 2.3% (13.9%) 1 22.2% 4.8% • The trailing one-year returns look significantly different at the end of the Health Care(13.3%) 4.8/° 40.6% third quarter compared to the end of the second quarter due to -1 5.7% September 2011 (large negative month) dropping off. At the end of the Financials(21.6%) 1 38.5% third quarter, each GICS sector, in both the indexes, generated a Info Technology(17.0%) -0 2.4% double-digit return compared to several sectors that had negative 1 21.290 returns at the end of the second quarter. Telecom Services(0.8%) 14.0% 1 31.0% Utilities(3.7%) 6.1% 18.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Source:Morningstar Direct and Russell.com. IlmiN THE BOGDAHN 7 GROUP The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 &2000 As of September 30,2012 Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Symbol Avg.Wgt Return Sector Russell 2000 Symbol Avg.Wgt Return Sector Apple Inc AAPL 4.26% 14.7% Information Technology Pharmacyclics Inc PCYC 0.29% 18.1% Health Care Exxon Mobil Corp XOM 2.92% 7.6% Energy Athenahealth Inc ATHN 0.27% 15.9% Health Care General Electric Co GE 1.64% 9.8% Industrials Two Hbrs Invt Corp TWO 0.27% 16.9% Financials Chevron Corp CVX 1.57% 11.4% Energy Cubist Pharmaceuticals CBST 0.25% 25.8% Health Care Intl Business Machines IBM 1.54% 6.5% Information Technology Ocwen Financial Corp OCN 0.25% 46.0% Financials Microsoft Corp MSFT 1.53% -2.0% Information Technology Dril-Quip Inc DRQ 0.24% 9.6% Energy At&T Inc T 1.51% 7.0% Telecommunication Services Hms Holdings Corp HMSY 0.24% 0.4% Health Care Google Inc GOOG 1.33% 30.1% Information Technology United Natural Foods Inc UNFI 0.24% 6.5% Consumer Staples Procter&Gamble Co PG 1.30% 14.2% Consumer Staples Energy Xxi(Bermuda)Ltd EXXI 0.23% 11.9% Energy Johnson &Johnson JNJ 1.29% 2.9% Health Care Ultimate Software Group ULTI 0.23% 14.6% Information Technology Perk Russell 1000 - - Sector Metropcs Communications Inc PCS 0.02% 93.6% Telecommunication Services Sunesis Pharmaceuticals Inc SNSS 0.01% 96.9% Health Care Sprint Nextel Corp S 0.11% 69.3% Telecommunication Services Sunrise Senior Living Inc SRZ 0.07% 95.7% Health Care Tesoro Corp TSO 0.04% 68.4% Energy Xenoport Inc XNPT 0.04% 89.7% Health Care Shaw Group Inc SHAW 0.02% 59.7% Industrials Authentec Inc AUTH 0.03% 85.0% Information Technology Rackspace Hosting Inc RAX 0.05% 50.4% Information Technology Enernoc Inc ENOC 0.03% 79.3% Industrials Tahoe Resources Inc TAHO 0.01% 46.6% Materials Infinity Pharmaceuticals Inc INFI 0.05% 73.7% Health Care Fusion-lo Inc FIO 0.01% 44.9% Information Technology Iris International Inc IRIS 0.03% 72.7% Health Care Corelogic Inc CLGX 0.02% 44.9% Information Technology Fsi Intl Inc FSII 0.02% 72.7% Information Technology Pultegroup Inc PHM 0.04% 44.9% Consumer Discretionary Geoeye Inc GEOY 0.03% 70.7% Industrials Riverbed Technology Inc RVBD 0.02% 44.1% Information Technology Golden Star Resources Ltd GSS 0.04% 69.8% Consumer Discretionary Bottom 10 Performing Stocks I Bottom 10 Performing Stocks Russell 1000 Symbol Avg.Wgt Return Sector •• Russell 2000 Symbol Avg.Wgt Return Sector Groupon Inc GRPN 0.00% -55.2% Consumer Discretionary A123 Systems Inc AONE 0.00% -80.2% Industrials Zynga Inc-CI A ZNGA 0.00% -47.8% Information Technology Knight Capital Group Inc-A KCG 0.02% -77.6% Financials Itt Educational Services Inc ESI 0.01% -47.0% Consumer Discretionary Progenies Pharmaceuticals PGNX 0.01% -70.7% Health Care Molycorp Inc MCP 0.01% -46.6% Materials Audience Inc ADNC 0.00% -67.8% Information Technology Advanced Micro Devices AMD 0.01% -41.2% Information Technology Envivio Inc ENVI 0.00% -65.7% Information Technology Facebook Inc-A FB 0.06% -30.4% Information Technology Questcor Pharmaceuticals QCOR 0.08% -65.3% Health Care Big Lots Inc BIG 0.01% -27.5% Consumer Discretionary Gevo Inc GEVO 0.01% -57.1% Energy Devry Inc DV 0.01% -26.5% Consumer Discretionary Idenix Pharmaceuticals Inc IDIX 0.03% -55.6% Health Care Tripadvisor Inc TRIP 0.02% -26.3% Consumer Discretionary Education Management Corp EDMC 0.01% -55.3% Consumer Discretionary Walter Energy Inc WLT 0.01% -26.2% Materials Supervalu Inc SVU 0.04% -53.5% Consumer Staples Source:Morningstar Direct TEE i BOGDAHN 8 \` f GROUP The Market Environment International and Regional Market Index Performance (Country Count) As of September 30,2012 Quarter Performance •USD ❑Local Currency • In general, European equities were up the most on a regional basis AC World x US(44) 7.5% during the third quarter, as the region's leaders made some apparent 5.2% headway in the debt crisis. Of all European Union countries, equities in WORLD x US(23) 7.4% Germany performed the best. 5.0% EAFE(22) 7.0% • The Bank of Japan continued its monetary easing policy in mid- 4.7% September by announcing an expansion of its asset purchase program Europe(16) 8.8°r° from 70 to 80 trillion yen. The purchases are expected to be completed 6.s°%° by the end of 2013. We would expect this action to lead to yen Pacific(5) 3.8% 1.6% devaluation at some point. 7.9% Emerging Mkt(21) 6.1% • In USD terms, Indian (+15.4%) and New Zealand (+15.8%) equities 9.8% had the best quarterly return of the Asian countries. Over 40% of the EM Europe(5) 6.7% Indian equity return was due to Rupee appreciation. ,,/,, 8.9% EM Asia(8) 6.6 • Conversely, Japan, Ireland and Greece were the worst-performing 4.7% EM Latin Amer(5) developed country equities during the quarter-Japan and Ireland _ 3.5% were in negative territory. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • All sectors in the developed markets exhibited positive performance 1-Year Performance ■USD 0 Local Currency during the quarter, with Financials leading the pack at +11.3%. In developing markets, Info Technology, Consumer Discretionary, AC World x US(44) 15.0°k 114.2% Healthcare and Energy sectors were up double digits, while Utilities stocks were mostly flat to slightly negative. WORLD x US(23) 13.5% EAFE(22) 14.3% • US investor returns overseas were aided significantly by currency 14.1% effects during the quarter, with the exception of the Brazilian Real 18.1% Europe(16) which modestly depreciated. 19.00/c Pacific(5) 7'9% /o • The one-year performance results for non-US equities rose into 6.3 positive territory as the poor period from September 2011 was Emerging Mkt(21) 17.3% dropped off. _ 16.8% EM Europe(5) 18.1% 15.4% EM Asia(8) 18.2% 16.5% EM Latin Amer(5) 13.5% 17.0% 0.0% 5.0% 10.0% 15.0% 20.0% fQ BOGDAHN Source:MSCI(www.msci.com) 9 GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail As of September 30,2012 MSCI-EAFE Sector Weight Quarter Return - MSCI-EAFE MSCI-ACWIxUS Quarter 1-Year Energy 8.3% 6.7% 16.3% Country Weight Weight Return Return United Kingdom 23.2% 15.8% 7.1% 20.8% Materials 9.6% 7.1% 8.6% Japan 20.1% 13.6% -0.8% -1.5% Industrials 12.4% 5.8% 13.0% France 9.2% 6.2% 7.4% 13.8% Australia 8.9% 6.1% 10.5% 23.0% Consumer Discretionary 10.1% 2.5% 13.0% Switzerland 8.6% 5.8% 7.8% 17.1% Consumer Staples 12.0% 7.1% 20.9% Germany 8.6% 5.8% 13.9% 26.5% Sweden 3.2% 2.2% 10.6% 27.9% Health Care 10.2% 8.9% 22.4% Hong Kong 3.1% 2.1% 12.5% 29.0% Financials 23.5% 11.3% 19.8% Spain 2.9% 2.0% 11.5% -6.5% Information Technology 4.3% 1.4% -1.4% Netherlands 2.5% 1.7% 9.2% 18.0% Italy 2.2% 1.5% 7.6% 4.7% Telecommunication Services 5.4% 5.2% 6.8% Singapore 1.9% 1.3% 10.6% 25.7% Utilities 4.0% 2.5% -1.8% Denmark 1.2% 0.8% 11.3% 38.2% Total ' 100.0% II 7.0% 7 14.3% Belgium 1.2% 0.8% 10.1% 35.4% Norway 1.0% 0.7% 13.6% 29.8% Finland 0.8% 0.5% 10.6% 1.0% MSCI-ACWIxUS _mill Sector Weight Warier Return 1-Year Retu Israel 0.6% 0.4% 6.4% 4.7% Energy 11.0% 8.8% 15.4% Ireland 0.3% 0.2% -1.5% 26.4% Materials 11.1% 7.9% 6.7% Austria 0.3% 0.2% 7.3% 1.2% Portugal 0.2% 0.1% 13.1% -13.9% Industrials 10.5% 5.6% 13.8% New Zealand 0.1% 0.1% 15.8% 21.8% Consumer Discretionary 9.1% 4.2% 13.4% Greece 0.1% 0.0% 0.3% -40.2% Consumer Staples 10.4% 7.1% 22.2% Total EAFE Countries 100.0% 67.8% 7.0% 14.3% Canada 8.3% 10.6% 14.7% Health Care 7.4% 9.1% 22.7% Total Developed Countries 76.1% • 7.4% 1.14.4% Financials 24.7% 10.0% 19.4% China 4.1% 4.7% 17.9% Information Technology 6.3% 6.4% 13.1% Korea 3.7% 9.9% 22.8% Brazil 3.0% 4.8% 5.5% Telecommunication Services 5.9% 6.3% 10.5% Taiwan 2.7% 11.8% 15.4% Utilities 3.7% 1.8% 1.4% South Africa 1.9% 6.6% 19.8% Total 100.0% .5% 15.0% India 1.7% 15.4% 7.5%•IMI Russia 1.4% 9.4% 18.5% Mexico 1.2% 6.8% 33.6% MSCI-Emerging Mkt 1= Sector Weight Quarter Return 1-Year Return Malaysia 0.9% 5.3% 23.1% Energy 13.1% 10.9% 12.3% Indonesia 0.7% 7.5% 10.1% Materials 12.0% 5.5% 5.2% Thailand 0.5% 11.3% 42.1% Industrials 6.7% 4.6% 13.4% Chile 0.5% 1.3% 17.8% Turkey 0.4% 8.2% 17.4% Consumer Discretionary 8.0% 10.6% 14.4% Poland 0.4% 13.2% 18.5% Consumer Staples 8.5% 7.0% 28.0% Colombia 0.3% 2.3% 23.4% Health Care 1.3% 11.1% 23.0% Philippines 0.2% 4.5% 41.6% Peru 0.2% 2.9% 25.9% Financials 24.9% 7.3% 19.3% Egypt 0.1% 22.6% 45.6% Information Technology 14.0% 11.1% 31.1% Czech Republic 0.1% 10.4% 4.8% Telecommunication Services 8.1% 7.9% 16.0% Hungary 0.1% 9.6% 21.7% Morocco 0.0% -3.3% -21.3% Utilities 3.6% -0.4% 14.6% Total Emerging Countries 23.8% MIL2.9% - 17.3% Total 100.0% '.9% 17.3° Total ACWIxUS Countrie 00.0% 5% 15.0% � BOGDAHN Source:MSCI(www.msci.com) o GROUP 1 The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance As of September 30,2012 Quarter Performance • For the second quarter in a row, investors were rewarded for owning AAA 1.9% riskier assets as a strong credit rally led the Barclays Aggregate Bond AA 2.3% Index to a 1.6% quarterly return. Each of the three key sectors were - positive for the quarter with Corporate Bonds besting MBS and A 3.7°r° Treasuries by 270 bps and 320 bps, respectively. The investment Baa 4.3% grade credit sector was led by Baa- and A-rated bonds, which High Yield 4.4% outperformed AAA-rated bonds by 2.4% and 1.9%. The MBS sector Treasury 0.6°r° turned in a solid showing due to strong market technicals resulting from the Fed announcing they would buy up to $40 billion per month in pass- Mortgage 1.1% through securities. Lastly, Treasuries lagged as the yield curve, across Corporate IG 3.8% all maturities, was little changed. Within Treasuries, TIPS outperformed TIPS 2.1% standard Treasury bonds. • During the third quarter, investors saw low quality bonds continue to Aggregate 1.6% outperform their higher quality counterparts. From high yield to AAA- Intermediate Agg 1.4% rated bonds, the trend held. As investors moved down the quality Global Agg x US 4.4% spectrum, investment returns were stronger in the quarter. The - , differential between investment grade corporates and high yield credits 0.0% 2.0% 4.0% 6.0% was 60 basis points. The spread between the Baa-rated bonds (the lowest investment grade rating) and AAA-rated credit was 2.4%. 1-Year Performance • Trailing one-year returns continued to be positive across all broad and AAA s.7°r° sector-focused indices. However, absolute levels continue to trend AA 7.9% lower as spreads and nominal yields compressed. The trailing one-year A 10.5% fixed income results were led by the 18.6% return of High Yield bonds, Baa 11.9% which benefited from strong fund flows, positive fundamentals, and - strong investor appetite for yield. Continuing with the theme of High Yield 1s.6°%° improving credit, investment grade credit was the second best Treasury - 3.0% performing sector, returning 10.8%. Mortgage 3.7% • Finally, International bonds benefitted from a weak dollar generating a Corporate IG 10.8% quarterly return of 4.4%, which was 280 basis points better than TIPS I. 9.1% domestic bonds (1.6%). On a trailing one-year basis, the return gap between the two areas of the market shrank to a 40 bps advantage for Aggregate 5.2% domestic bonds. Intermediate Agg 4.3% Global Agg x US 4.8% 0.0% 5.0% 10.0% 15.0% 20.0% AAA,AA,A,Baa,Treasury,Mortgage&Corporate benchmarks are sub-components of the Barclays Aggregate Index. Source:Barclays Capital Live THE fC, BOGDAHN 11 GROUP The Market Environment Market Rate &Yield Curve Comparison As of September 30,2012 1-Year Trailing Market Rates • During the quarter, the macro-economic picture was dominated by the 4.50 aggressive moves in September by the Federal Reserve and the ECB. In Fed Funds Rate TED Spread 3-Month Libor early September, the ECB approved "outright monetary transactions" 4.00 - BAA/10yr Spread 10yr Treasury 10yr TIPS (bond purchases) to help troubled sovereign nations in the Eurozone, 3.50 - specifically Italy and Spain. Later in the month, Chairman Ben Bernanke announced the Federal Reserve would begin another round of 3.00 - Quantitative Easing (QE III). This time, in addition to the announced 2.50 - continuation of Operation Twist in June, the Fed announced plans to buy up to $40 billion of MBS securities each month. Treasuries had a modest 2.00 reaction to the news given that the current round of quantitative easing 1.50 - will be focused on the mortgage sector. 1.00 • The 10-year Treasury began the quarter with a yield of 1.67% and finished 2 bps lower at 1.65%. The 1.65% yield on the 10-year, while 0.50 modestly below the closing yield on June 30, masked a great deal of 0.00 -- volatility for the quarter. During the third quarter, the 10-year Treasury - traded in a 45 basis point range of 1.43% to 1.88%. The low was reached -0.50 in late July as concerns grew that the sluggish global economy was -i.00 weakening further. As optimism grew that central banks would, once Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 again, undertake further quantitative easing, rates sold off dramatically to Treasury Yield Curve their quarterly high of 1.88% on September 14. After such time, rates 5.50 moved back to the levels of the previous quarter to end at a yield of 5.00 - 0 12/31/2010 —e—12/30/2011 1.65%. Once again, short-term rates remain at or near zero giving even —0-6/30/2012 ∎ 9/30/2012 more indication from the Fed that they intend to keep rates low for a 4.50 - considerable period of time. 4.00 - ■ In spite of activity from central banks in the United States and Europe, the 3.50 - Treasury yield curve remained mostly unchanged during the 3rd quarter. 3.00 However, when comparing 2010 to the present period, the yield curve has O /� flattened dramatically. At current levels, investors must extend to 10-year 2.50 • maturities and beyond to realize a yield in excess of the rate of inflation. 2.00 U Since 2010, investors in longer-dated bonds have been rewarded as rates • moved lower. Going forward, however, the flatter yield curve and low 1.50 nominal yields provide investors with little return to compensate for the 1.00 high level of interest rate risk found in long-dated Treasuries. 0.50 �-- • 0.00 - • 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: US Department of Treasury, FRED-Federal Reserve of St. Louis, and Mortgage-X.com THE BOGDAHN 12 GROUP The Market Environment Domestic Private & Public Real Estate Market Metrics As of September 30,2012 • Private Core Real Estate (Charts located to the right): The asset class NCREIF NFI-ODCE(Cap Weighted) Market Value($MM) Quarter Return 1-Year Return (as represented by the NCREIF NFI-ODCE and the NPI) continued to produce solid results across all sectors and geographies for the quarter, otal Return $s3,s3o.3 2.6% 12.4% which drove returns for most sectors (except Hotels) and geographies Income 1.3% s.a°%° into double digits for the 1-Year. This is the first time in five quarters that Appreciation 1.2% 6.7% the apartment sector was not the highest performing; while the West Fund Count Average Loan-To-Value Average Occupancy region continues to be the strongest performer. Underlying property NCREIF NFI-ODCE Key Statistics 18 23% 89.9% fundamentals continue to improve with the NFI and NPI occupancy Ak rates increasing. Due to asset appreciation, the pay-down of debt, and NCREIF NPI Market Value($MM) Quarter Return ear RetuM continued interest of investors in Core real estate (investors contributed otal Return $310,738.9 2.7% 12.0% $3.05 billion during the quarter), the NFI LTV reduce by 1%. For the Income 1.5% 5.9% broader universe, represented by the NPI, same store NOI increased Appreciation 1.2% 5.9% for the third consecutive quarter by 2.8% and Cap rates stayed at 6.0%. - Sector Weight arter Return 1-Year Retu M Office 35.1% 2.3% 10.5% • Public Real Estate Securities (Charts located at bottom of this slide): Performance for August 2012 was mixed with retail, industrial/office, partment 2s.3°%o 2.8% 13.2% and lodging sectors producing positive results while, residential, Retail zz.7°%° 3.0% 13.4% diversified, healthcare and storage exhibiting negative returns. More Industrial 14.3% 2.9% 12.2% broadly, the FTSE NAREIT Equity REITs Index (proxy for U.S. REITs) Hotel 2.6% 2.1% 8.0% has performed very well for the YTD period. The REIT dividend yield Total Regional Weight Quarter Return 1-Year Return was unchanged in August at 3.4% and the premium to NAV was 34.0% 3.1% 13.5% relatively unchanged at 17%. However, it seems that investors remain East 33.6% 2.4% 10.8% positive that REITs are not overvalued, as REITs spent the past few oath 22.2% 2.7% 12.2% years refinancing into lower coupon debt, raising common equity at a Midwest 10.2% 2.3% 11.1% premium to their NAV, lowering their overall leverage, improving the quality of their portfolios and lowering dividend payout ratios. REIT Premium/Discount to Underlying Property Value M-T-D Total Y-T-D Total Equity Market 40% January 1990 to September 2012 U.S.Month) Sector Results* Returns Returns .italization($MM) 30% ■ Retail 2.5% 26.7% 3.1° $139,209.7 7 20% I'I fig J Shopping Center 2.6% 25.2% 3.5% 41,359.2 E Regional Mall 2.3% 28.0% 2.7% 86,162.9 la 10% -� ,r1� �I Free Standing 4.0% 22.9% 4.3% 11,687.6 a r i>•1 1WA Industrial/Office 1.6% 17.1% 3.5% 85,838.0 0% IR I 1 11 e Industrial 4.5% 21.8% 3.4% 21,208.7 W lit Office 0.4% 14.2% 3.3% 51,944.8 10% Mixed 2.2% 23.1% 4.8% 10,684.5 z -20% Residential -3.5% 9.4% 2.9% 77,955.6 =O Apartment -3.5% 9.3% 2.9% 73,723.6 y -30% 1 i Manufactured Home -3.4% 11.4% 3.6% 4,231.9 a v Diversified -1.3% 12.4% 4.0% 36,209.3 -40% Lodging/Resort 3.0% 9.3% 2.9% 27,092.9 Healthcare -2.5% 16.8% 4.7% 64,093.1 -50% - N N N N N N N N N N N N N Self Storage -0.7% 15.9% 2.9% 31,515.0 co co co co co co co co co co o0 o o o o o o o o o 0 0 0 -,FTSE NAREIT Equity REITs Index 0.0% 17.2% !4% $461,913., o - N w a n 0 v w co o -, N w a n 0/ J w co o N Source for bottom left table: `NAREIT via AEW Research as of August 31, 2012 THE Source for top right table.:NCREIF as of June 30, 2012;Source for bottom right chart:Green Street Advisors via AEW Research BOGDAHN 13 `..." GROUP, The Market Environment The 2012 Bogdahn Client Survey How are you doing?How are we doing? • In an effort to better serve your needs, The Bogdahn Group is We made a number of enhancements to the look and feel of your conducting its annual client survey. 0 performance reports this year; please rate your satisfaction with these changes. • We sincerely thank you for taking the time to fill out this survey. The insights gained will help The Bogdahn Group continue Please rate your satisfaction with the level of detail in your improve and better serve you. Additionally, we use the performance report. information to evaluate our consultants and identify areas of professional improvement. This survey is short and should take Please rate your consultant's ability to effectively communicate the approximately five to ten minutes to complete. The Bogdahn © information in the performance report. 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THE BOGDAHN 14 GROUP Asset Allocation Summary Total Fund As of September 30,2012 Asset Allocation By Segment as of Asset Allocation By Segment as of June 30,2012:$25,336,720 September 30,2012 :$26,888,633 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 11,875,696 46.9 • Domestic Equity 13,452,924 50.0 International Equity 3,465,753 13.7 International Equity 3,855,915 14.3 • Fixed Income 5,582,729 22.0 • Fixed Income 5,712,507 21.2 Global Fixed Income 977,863 3.9 Global Fixed Income 1,019,084 3.8 • Real Estate 2,343,949 9.3 • Real Estate 2,395,925 8.9 • Cash Equivalent 1,090,730 4.3 • Cash Equivalent 452,279 1.7 1 TH h i BOGDAHN 15 GROUP. Asset Allocation Summary Total Fund As of September 30,2012 Asset Allocation By Manager as of Asset Allocation By Manager as of June 30,2012:$25,336,720 September 30,2012 :$26,888,633 411i 4111111111111h 111 111 Allocation Allocation Market Value Allocation Market Value Allocation • Lateef Asset Mgmt.Equity 6,609,731 26.1 • Lateef Asset Mgmt.Equity 7,136,205 26.5 Dalton All Cap Value Equity 6,178,716 24.4 Dalton All Cap Value Equity 6,615,050 24.6 • Galliard Core Fixed Income 4,415,321 17.4 • Galliard Core Fixed Income 4,494,942 16.7 RBC Global(Voyageur) 3,465,753 13.7 RBC Global(Voyageur) 3,855,915 14.3 • Intercontinental 1,626,346 6.4 • Intercontinental 1,670,583 6.2 • Galliard TIPS 1,201,345 4.7 • Galliard TIPS 1,228,177 4.6 Templeton Global Bond Fund(TGBAX) 977,863 3.9 Templeton Global Bond Fund(TGBAX) 1,019,084 3.8 American Core Realty Fund 717,603 2.8 American Core Realty Fund 725,342 2.7 Receipt&Disbursement 143,826 0.6 Receipt&Disbursement 143,119 0.5 Galliard Cash 216 0.0 Galliard Cash 216 0.0 Ilm. THE cc BOGDAHN 16 L GROUP. Page Intentionally Left Blank 17 Asset Allocation vs. Target Allocation Total Fund As of September 30,2012 Asset Allocation vs.Target Allocation Domestic Large Cap Value Equity -0.4 r Domestic Broad Cap Growth Equity 1.5r RBC Global International Equity -0.7 r Galliard Capital Fixed Income 1.7% Galliadr Capital TIPS -0.4 r Templeton Global Bond Fund -1.2 r American Core Realty Fund -2.3 r Intercontinental Realty 1.2% Receipt&Disbursement 0.5r Galliard Cash .0r -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • Allocation Differences Market Value Allocation(%) Target(%) Domestic Large Cap Value Equity 6,615,050 24.6 25.0 Domestic Broad Cap Growth Equity 7,136,205 26.5 25.0 RBC Global International Equity 3,855,915 14.3 15.0 Galliard Capital Fixed Income 4,494,942 16.7 15.0 Galliadr Capital TIPS 1,228,177 4.6 5.0 Templeton Global Bond Fund 1,019,084 3.8 5.0 American Core Realty Fund 725,342 2.7 5.0 Intercontinental Realty 1,670,583 6.2 5.0 Receipt&Disbursement 143,119 0.5 0.0 Galliard Cash 216 0.0 0.0 Total Fund 26,888,633 100.0 100.0 IIMN THE cc ' BOGDAHN 18 GROUP. Asset Allocation History Total Fund As of September 30,2012 Historical Asset Allocation by Portfolio Sep-2012 Jun-2012 Mar-2012 Dec-2011 Sep-2011 ($) % ($) % ($) % ($) % ($) Total Equity 17,607,169 65.48 16,254,199 64.15 17,141,014 65.71 14,974,598 63.06 13,730,700 62.30 Total Domestic Equity 13,751,255 51.14 12,788,447 50.47 13,452,461 51.57 11,838,553 49.85 10,637,310 48.26 Dalton All Cap Value Equity 6,615,050 24.60 6,178,716 24.39 6,536,941 25.06 5,919,026 24.92 5,305,428 24.07 LateefAssetMgmt.Equity 7,136,205 26.54 6,609,731 26.09 6,915,520 26.51 5,919,527 24.93 5,331,882 24.19 Total International Equity 3,855,915 14.34 3,465,753 13.68 3,688,553 14.14 3,136,046 13.21 3,093,390 14.03 RBC Global(Voyageur) 3,855,915 14.34 3,465,753 13.68 3,688,553 14.14 3,136,046 13.21 3,093,390 14.03 Total Fixed Income 6,742,203 25.07 6,594,529 26.03 6,508,151 24.95 5,895,623 24.83 5,894,006 26.74 Total Domestic Fixed Income 5,723,119 21.28 5,616,667 22.17 5,508,151 21.12 4,951,348 20.85 - 0.00 Galliard Core Fixed Income 4,494,942 16.72 4,415,321 17.43 4,335,720 16.62 3,802,526 16.01 4,760,830 21.60 Galliard TIPS 1,228,177 4.57 1,201,345 4.74 1,172,431 4.49 1,148,822 4.84 1,133,176 5.14 Total Global Fixed Income 1,019,084 3.79 977,863 3.86 1,000,000 3.83 944,275 3.98 - 0.00 Templeton Global Bond Fund(TGBAX) 1,019,084 3.79 977,863 3.86 1,000,000 3.83 944,275 3.98 - 0.00 Total Real Estate 2,395,925 8.91 2,343,949 9.25 2,297,015 8.81 2,244,157 9.45 2,182,283 9.90 American Core Realty Fund 725,342 2.70 717,603 2.83 708,972 2.72 698,325 2.94 689,588 3.13 Intercontinental 1,670,583 6.21 1,626,346 6.42 1,588,043 6.09 1,545,832 6.51 1,492,695 6.77 Receipt&Disbursement 143,119 0.53 143,826 0.57 138,964 0.53 633,590 2.67 233,642 1.06 Galliard Cash 216 0.00 216 0.00 216 0.00 216 0.00 216 0.00 Total Fund Portfolio 26,888,633 100.00 25,336,720 100.00 26,085,360 100.00 23,748,185 100.00 22,040,847 100.00 M THE 19 L BOGDAHN GROUP. Asset Allocation History Total Fund As of September 30,2012 Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 ^ 60.0 0 c 0 — 50.0 ra CI a 40.0 30.0 20.0 10.0 0.0 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 • Cash Equivalent • Real Estate Global Fixed Income • Fixed Income International Equity • Domestic Equity THE [ BOGDAHN 20 \`..." GROUP. Page Intentionally Left Blank 21 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of September 30,2012 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 c 0 is 30.0 c, 0 25.0 20.0 15.0 O 10.0 0 5.0 0 0.0 0 O -5.0 US Equity Intl. Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 51.14 (21) 14.34 (55) 21.28 (81) 3.79 (84) 0.00 8.91 (27) 0.53 (71) 5th Percentile 61.76 25.19 61.56 11.90 28.72 11.27 10.81 1st Quartile 49.98 19.46 36.20 6.31 17.14 8.98 2.33 Median 42.41 14.45 30.00 4.98 9.09 5.80 1.12 3rd Quartile 31.84 10.48 23.72 4.48 4.17 4.57 0.43 95th Percentile 18.08 6.57 16.04 1.00 1.22 2.83 0.07 M THE BOGDAHN 22 GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30,2012 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Equity 16,254,199 75,730 - - -36,385 -2,161 60,870 1,254,915 17,607,169 Total Domestic Equity 12,788,447 67,500 - - -28,155 -1,511 51,168 873,807 13,751,255 LateefAssetMgmt.Equity 6,609,731 33,750 - - -16,570 -745 11,550 498,489 7,136,205 Dalton All Cap Value Equity 6,178,716 33,750 - - -11,585 -766 39,618 375,318 6,615,050 Total International Equity 3,465,753 8,230 - - -8,230 -649 9,702 381,109 3,855,915 RBC Global(Voyageur) 3,465,753 8,230 - - -8,230 -649 9,702 381,109 3,855,915 Total Fixed Income 6,594,529 -5,313 - - - -149 15,713 137,423 6,742,203 Total Domestic Fixed Income 5,616,667 6,000 - - - -149 4,400 96,202 5,723,119 Galliard Core Fixed Income 4,415,321 - - - - - - 79,620 4,494,942 Galliard TIPS 1,201,345 6,000 - - - -149 4,400 16,581 1,228,177 Total Global Fixed Income 977,863 -11,313 - - - - 11,313 41,221 1,019,084 Templeton Global Bond Fund(TGBAX) 977,863 -11,313 - - - - 11,313 41,221 1,019,084 Total Real Estate 2,343,949 - - -8,806 -1,958 - 10,764 51,976 2,395,925 American Core Realty Fund 717,603 - - -8,806 -1,958 - 10,764 7,739 725,342 Intercontinental 1,626,346 - - - - - - 44,237 1,670,583 Receipt&Disbursement 143,826 -70,417 501,994 -417,599 - -14,687 2 - 143,119 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 25,336,720 - 501,994 -426,405 -38,344 -16,996 87,349 1,444,315 26,888,633 M THE BOGDAHN 23 GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2011 To September 30,2012 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Equity 13,730,700 301,051 - - -139,566 -8,468 297,021 3,426,430 17,607,169 Total Domestic Equity 10,637,310 268,400 - - -106,915 -5,945 202,220 2,756,184 13,751,255 LateefAssetMgmt.Equity 5,331,882 99,200 - - -62,027 -2,971 58,781 1,711,340 7,136,205 Dalton All Cap Value Equity 5,305,428 169,200 - - -44,888 -2,973 143,439 1,044,844 6,615,050 Total International Equity 3,093,390 32,651 - - -32,651 -2,523 94,801 670,247 3,855,915 RBC Global(Voyageur) 3,093,390 32,651 - - -32,651 -2,523 94,801 670,247 3,855,915 Total Fixed Income 5,894,006 461,725 - - -9,366 -580 81,170 315,248 6,742,203 Total Domestic Fixed Income - -473,710 - - -9,366 -533 19,709 6,187,019 5,723,119 Galliard Core Fixed Income 4,760,830 -503,790 - - -6,210 - - 244,112 4,494,942 Galliard TIPS 1,133,176 30,080 - - -3,156 -580 16,605 52,052 1,228,177 Total Global Fixed Income - 935,435 - - - - 64,565 19,084 1,019,084 Templeton Global Bond Fund(TGBAX) - 935,435 - - - - 64,565 19,084 1,019,084 Total Real Estate 2,182,283 - - -34,490 -26,959 - 78,337 196,754 2,395,925 American Core Realty Fund 689,588 - - -34,490 -7,727 - 42,217 35,754 725,342 Intercontinental 1,492,695 - - - -19,232 - 36,120 161,000 1,670,583 Receipt&Disbursement 233,642 -762,776 2,414,472 -1,606,752 - -135,486 20 - 143,119 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 22,040,847 - 2,414,472 -1,641,243 -175,891 -144,533 456,548 3,938,432 26,888,633 THE 24 1 BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of September 30,2012 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) 5.88 (4) 18.99 (30) 18.99 (30) 9.22 (50) 1.77 (81) 4.14 (88) 11/01/2000 Total Fund Policy 4.80 (51) 19.57 (22) 19.57 (22) 10.19 (18) 3.36 (25) 3.88 (92) All Public Plans-Total Fund Median 4.80 18.02 18.02 9.21 2.77 4.92 Total Fund(New Mgrs)(Net) 5.89 (4) 18.96 (31) 18.96 (31) 9.17 (53) 1.73 (82) 1.73 (82) 10/01/2007 Total Fund Policy 4.80 (51) 19.57 (22) 19.57 (22) 10.19 (18) 3.36 (25) 3.36 (25) All Public Plans-Total Fund Median 4.80 18.02 18.02 9.21 2.77 2.77 Total Fund(Gross) 6.04 (3) 19.83 (18) 19.83 (18) 10.05 (19) 2.46 (62) 4.87 (53) 11/01/2000 Total Fund Policy 4.80 (51) 19.57 (22) 19.57 (22) 10.19 (18) 3.36 (25) 3.88 (92) All Public Plans-Total Fund Median 4.80 18.02 18.02 9.21 2.77 4.92 Total Fund(New Mgrs)(Gross) 6.05 (3) 19.80 (18) 19.80 (18) 9.93 (25) 2.39 (64) 2.39 (64) 10/01/2007 Total Fund Policy 4.80 (51) 19.57 (22) 19.57 (22) 10.19 (18) 3.36 (25) 3.36 (25) All Public Plans-Total Fund Median 4.80 18.02 18.02 9.21 2.77 2.77 Total Equity 8.09 27.08 27.08 11.27 0.27 3.97 01/01/2001 Total Equity Policy 6.40 26.46 26.46 10.79 -0.25 2.54 Total Domestic Equity 7.22 (24) 27.76 (65) 27.76 (65) 12.16 (63) 1.13 (62) 3.81 (38) 11/01/2000 Total Domestic Equity Policy 6.23 (59) 30.20 (46) 30.20 (46) 13.26 (42) 1.08 (63) 2.01 (87) IM U.S. Large Cap Core Equity(SA+CF)Median 6.43 29.91 29.91 12.82 1.60 3.09 Total International Equity 11.28 (1) 24.74 (2) 24.74 (2) 8.33 (5) -2.98 (48) 4.44 (88) 11/01/2000 MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.59 (64) -4.77 (73) 3.06 (98) IM International Large Cap Value Equity(SA+CF)Median 7.33 15.01 15.01 3.59 -3.28 6.47 Total Fixed Income 2.32 6.34 6.34 6.75 6.23 ' 6.10 ' 11/01/2000 Total Fixed Policy 1.36 4.31 4.31 5.34 5.96 5.96 Total Domestic Fixed Income 1.79 5.88 5.88 6.59 6.14 6.06 11/01/2000 Total Domestic Fixed Policy 1.36 4.31 4.31 5.34 5.96 5.96 Total Global Fixed Income 5.40 (12) N/A N/A N/A N/A 11.93 (6) 12/01/2011 Total Global Fixed Income Policy 2.99 (75) N/A N/A N/A N/A 4.30 (93) IM Global Fixed Income(MF)Median 3.45 7.50 7.50 5.59 5.61 7.37 Total Real Estate IIMII 12.75 12.75 10.28 -1.04 10/01/2007 NCREIF ODCE(Proxy) 2.70 11.53 11.53 12.16 -1.15 -1.15 Returns for periods greater than one year are annualized.Returns are expressed as percentages. THE 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. r ■1[ BOGDAHN 25 \`oe GROUP. Comparative Performance Trailing Returns Total Fund As of September 30,2012 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Dalton All Cap Value Equity 6.71 (28) 22.33 (82) 22.33 (82) 10.53 (66) N/A 16.38 (66) 05/01/2009 Russell 3000 Value Index 6.44 (32) 31.05 (16) 31.05 (16) 11.83 (44) -0.72 (83) 17.67 (44) IM U.S.All Cap Value Equity(SA+CF)Median 5.67 27.75 27.75 11.22 1.50 17.56 LateefAssetMgmt.Equity 7.71 (16) 33.21 (8) 33.21 (8) 13.80 (43) 4.68 (15) 4.68 (15) 10/01/2007 Russell 1000 Growth Index 6.11 (54) 29.19 (37) 29.19 (37) 14.73 (29) 3.24 (34) 3.24 (34) IM U.S. Large Cap Growth Equity(SA+CF)Median 6.20 27.57 27.57 13.16 2.48 2.47 RBC Global(Voyageur) 11.28 (1) 24.74 (2) 24.74 (2) 8.33 (5) N/A -3.03 (37) 11/01/2007 MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.59 (64) -4.77 (73) -5.60 (75) IM International Large Cap Value Equity(SA+CF)Median 7.33 15.01 15.01 3.59 -3.28 -4.00 Galliard Core Fixed Income 1.80 (46) 5.82 (47) 5.82 (47) 6.51 (22) 5.90 (81) 5.90 (81) 10/01/2007 Barclays Intermediate Aggregate Index 1.36 (86) 4.31 (86) 4.31 (86) 5.34 (78) 5.96 (78) 5.96 (78) IM U.S. Intermediate Duration(SA+CF)Median 1.74 5.63 5.63 5.83 6.47 6.47 Galliard TIPS 1.74 (96) 6.01 (100) 6.01 (100) 6.68 (98) 6.33 (98) 6.33 (99) 10/01/2007 BC U.S.Treasury Inflation Notes: 1-10 Year 1.71 (97) 6.32 (100) 6.32 (100) 6.97 (97) 6.56 (96) 6.56 (97) IM U.S.TIPS(SA+CF)Median 2.18 9.20 9.20 9.44 8.11 8.15 Templeton Global Bond Fund(TGBAX) 5.40 (12) N/A N/A N/A N/A 11.93 (6) 12/01/2011 Citigroup World Government Bond 2.99 (75) 3.28 (96) 3.28 (96) 4.29 (84) 6.45 (29) 4.30 (93) IM Global Fixed Income(MF)Median 3.45 7.50 7.50 5.59 5.61 7.37 American Core Realty Fund 2.58 (62) 11.56 (55) 11.56 (55) 9.98 (84) -1.20 (41) -1.20 (41) 10/01/2007 American Core Realty Policy 2.70 (56) 11.53 (55) 11.53 (55) 11.76 (61) 2.74 (4) 2.74 (4) IM U.S. Open End Private Real Estate(SA+CF)Median 2.76 12.29 12.29 12.62 -3.01 -3.01 Intercontinental 2.72 (54) 13.29 (40) 13.29 (40) N/A N/A 14.48 (62) 10/01/2010 NCREIF ODCE(Proxy) 2.70 (56) 11.53 (56) 11.53 (56) 12.16 (56) -1.15 (40) 14.85 (60) IM U.S. Open End Private Real Estate(SA+CF)Median 2.76 12.29 12.29 12.62 -3.01 15.92 Returns for periods greater than one year are annualized.Returns are expressed as percentages. THE 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. r ■1[ BOGDAHN 26 \`-oe GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 30,2012 Comparative Performance Fiscal Year Returns Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Total Fund(Net) 18.99 (30) 18.99 (30) -1.30 (83) ' 10.92 (28) 0.73 (58) -16.82 (90) 13.03 (74) 7.89 (64) Total Fund Policy 19.57 (22) 19.57 (22) 2.53 (14) 9.13 (74) 0.33 (63) -12.11 (29) 11.97 (87) 9.55 (32) All Public Plans-Total Fund Median 18.02 18.02 0.25 9.98 1.25 -13.77 14.46 8.68 Total Fund(New Mgrs)(Net) 18.96 (31) 18.96 (31) -1.17 (81) 10.66 (34) 0.68 (59) -16.82 (90) N/A N/A Total Fund Policy 19.57 (22) 19.57 (22) 2.53 (14) 9.13 (74) 0.33 (63) -12.11 (29) 11.97 (87) 9.55 (32) All Public Plans-Total Fund Median 18.02 18.02 0.25 9.98 1.25 -13.77 14.46 8.68 Total Fund(Gross) 19.83 (18) 19.83 (18) -0.44 (68) 11.71 (16) 1.44 (48) -16.46 (89) 13.92 (59) 8.62 (52) Total Fund Policy 19.57 (22) 19.57 (22) 2.53 (14) 9.13 (74) 0.33 (63) -12.11 (29) 11.97 (87) 9.55 (32) All Public Plans-Total Fund Median 18.02 18.02 0.25 9.98 1.25 -13.77 14.46 8.68 Total Fund(New Mgrs)(Gross) 19.80 (18) 19.80 (18) -0.45 (68) 11.40 (21) 1.39 (49) -16.46 (89) N/A N/A Total Fund Policy 19.57 (22) 19.57 (22) 2.53 (14) 9.13 (74) 0.33 (63) -12.11 (29) 11.97 (87) 9.55 (32) All Public Plans-Total Fund Median 18.02 18.02 0.25 9.98 1.25 -13.77 14.46 8.68 Total Equity 27.08 27.08 -25.61 18.52 10.83 j Total Equity Policy 26.46 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 27.76 (65) 27.76 (65) -3.30 (89) 14.19 (8) -4.29 (37) -21.66 (63) 17.58 (44) 9.29 (68) Total Domestic Equity Policy 30.20 (46) 30.20 (46) 0.55 (56) 10.96 (32) -6.91 (63) -21.98 (67) 16.44 (60) 10.79 (49) IM U.S. Large Cap Core Equity(SA+CF)Median 29.91 29.91 0.97 9.48 -5.80 -20.48 16.98 10.76 Total International Equity 24.74 (2) 24.74 (2) -8.75 (53) 11.69 (13) 11.87 (21) -39.55 (100) 23.63 (56) 19.84 (65) MSCI EAFE Index 14.33 (54) 14.33 (54) -8.94 (57) 3.71 (64) 3.80 (63) -30.13 (73) 25.38 (40) 19.65 (68) IM International Large Cap Value Equity(SA+CF)Median 15.01 15.01 -8.46 4.95 5.67 -27.35 23.99 20.79 Total Fixed Income 6.34 M 6.34 4.67 9.27 10.53 IIIIIP 4.96 IIMIP 3.27 Total Fixed Policy 4.31 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 5.88 5.88 4.67 9.27 10.53 0.64 4.96 3.27 Total Domestic Fixed Policy 4.31 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Global Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy N/A N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median 7.50 7.50 1.43 7.93 13.44 -1.77 7.44 2.65 Total Real Estate 12.75 (42) 12.75 (42) 15.82 (80) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A NCREIF ODCE(Proxy) 11.53 (56) 11.53 (56) 18.27 (42) 6.97 (46) -35.19 (52) 3.19 (54) 18.21 (58) 17.46 (57) IM U.S. Open End Private Real Estate(SA+CF)Median 12.29 12.29 16.62 6.39 -34.36 3.60 18.73 18.17 Returns for periods greater than one year are annualized.Returns are expressed as percentages. THE 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. r ■/ 1 BOGDAHN 27 \,-....., GROUP, Comparative Performance Fiscal Year Returns Total Fund As of September 30,2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Dalton All Cap Value Equity 22.33 (82) 22.33 (82) -5.35 (89) 16.63 (12) N/A N/A N/A N/A Russell 3000 Value Index 31.05 (16) 31.05 (16) -2.22 (62) 9.15 (70) -10.79 (94) -22.70 (76) 13.73 (78) 14.55 (18) IM U.S.All Cap Value Equity(SA+CF)Median 27.75 27.75 -1.32 10.79 -3.63 -19.98 16.93 10.51 Lateef Asset Mgmt.Equity 33.21 (8) 33.21 (8) -1.17 (75) 11.93 (43) 0.53 (22) -15.13 (16) N/A N/A Russell 1000 Growth Index 29.19 (37) 29.19 (37) 3.78 (29) 12.65 (35) -1.85 (38) -20.88 (53) 19.35 (57) 6.04 (57) IM U.S. Large Cap Growth Equity(SA+CF)Median 27.57 27.57 1.25 11.27 -3.00 -20.53 20.20 6.80 RBC Global(Voyageur) 24.74 (2) 24.74 (2) -8.75 (53) 11.69 (13) 11.87 (21) N/A N/A N/A MSCI EAFE Index 14.33 (54) 14.33 (54) -8.94 (57) 3.71 (64) 3.80 (63) -30.13 (73) 25.38 (40) 19.65 (68) IM International Large Cap Value Equity(SA+CF)Median 15.01 15.01 -8.46 4.95 5.67 -27.35 23.99 20.79 Galliard Core Fixed Income 5.82 (47) 5.82 (47) 4.16 (25) 9.63 (17) 12.08 (40) -1.68 (93) N/A N/A Barclays Intermediate Aggregate Index 4.31 (86) 4.31 (86) 4.22 (21) 7.52 (79) 9.69 (82) 4.16 (34) 5.33 (71) 3.84 (59) IM U.S. Intermediate Duration(SA+CF)Median 5.63 5.63 3.60 8.26 11.51 3.21 5.50 3.91 Galliard TIPS 6.01 (100) 6.01 (100) 6.73 (92) 7.28 (95) 3.97 (89) 7.72 (17) N/A N/A BC U.S.Treasury Inflation Notes: 1-10 Year 6.32 (100) 6.32 (100) 7.19 (86) 7.40 (95) 4.02 (89) 7.89 (14) 5.32 (26) 2.28 (45) IM U.S.TIPS(SA+CF)Median 9.20 9.20 9.70 9.36 6.18 6.34 5.07 2.20 Templeton Global Bond Fund(TGBAX) N/A N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond 3.28 (96) 3.28 (96) 4.61 (8) 4.98 (95) 13.79 (46) 5.88 (5) 8.69 (33) 2.22 (68) IM Global Fixed Income(MF)Median 7.50 7.50 1.43 7.93 13.44 -1.77 7.44 2.65 American Core Realty Fund 11.56 (55) 11.56 (55) 16.11 (79) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A American Core Realty Policy 11.53 (55) 11.53 (55) 18.27 (42) 5.84 (53) -22.09 (5) 5.27 (29) N/A N/A IM U.S. Open End Private Real Estate(SA+CF)Median 12.29 12.29 16.62 6.39 -34.36 3.60 18.73 18.17 Intercontinental 13.29 (40) 13.29 (40) 15.68 (81) N/A N/A N/A N/A N/A NCREIF ODCE(Proxy) 11.53 (56) 11.53 (56) 18.27 (42) 6.97 (46) -35.19 (52) 3.19 (54) 18.21 (58) 17.46 (57) IM U.S. Open End Private Real Estate(SA+CF)Median 12.29 12.29 16.62 6.39 -34.36 3.60 18.73 18.17 Returns for periods greater than one year are annualized.Returns are expressed as percentages. THE 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. r ■1[ BOGDAHN 28 \`-, GROUP. Performance Review Total Fund (Gross) As of September 30,2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Fund(Gross) 25,337 - 502 -426 -38 -17 87 1,444 26,889 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Fund(Gross) 22,041 - 2,414 -1,641 -176 -145 457 3,938 26,889 Peer Group Analysis-All Public Plans-Total Fund Cummulative Performance $190.00 23.00 $180.00 $175.55 20.00 - • O • O $170.00 63.64 17.00 - $160.00 14.00 - $150.00 E 11.00 0 $140.00 • • O re 8.00 $130.00 Et= $120.00 5.00 $110.00 2.00 $100.00 -1.00 - $90.00 I I I $80.00 $70.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR - • Total Fund(Gross) 6.04 (3) 19.83 (18) 19.83 (18) 9.23 (34) 10.05 (19) 7.83 (27) 2.46 (62) 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/12 O Total Fund Policy 4.80 (51) 19.57 (22) 19.57 (22) 10.72 (4) 10.19 (18) 7.64 (34) 3.36 (25) Total Fund(Gross) Total Fund Policy Median 4.80 18.02 18.02 8.80 9.21 7.26 2.77 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total Fund(Gross) -3.30 (93) 9.82 (5) 6.42 (39) -11.50 (80) 1.07 (51) 4.92 (9) Total Fund Policy -1.92 (48) 8.54 (38) 7.18 (17) -9.45 (38) 1.34 (30) 4.31 (36) All Public Plans-Total Fund Median -1.95 8.15 6.10 -10.21 1.09 4.07 THE BOGDAHN 29 cl GROUP. Performance Review Total Fund (Gross) As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 21.9 0.00 18.0 c PerformOver ance co 8 0 12.0 w 25.00 8 • • 8 0 0 0000 0 00 6.0 50.00 /-% 0 0 0 0 0 ? 0.0 - ° a ° -6.0 ° 75.00 QQ O 0000000 0 ° Under *ai O Performance re o 1 1 1 I I I I I 100.00 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Total Fund Policy(%) 4) Over Performance 0 Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • Total Fund(Gross) 20 4 (20%) 2 (10%) 9 (45%) 5 (25%) O Total Fund Policy 20 3 (15%) 10 (50%) 7 (35%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 10.34 Q 3.51 7, 10.00 • 3.30 Q E c 3.00 9.60 re 2.70 9.20 • 2.40 1 11.20 11.40 11.60 11.80 12.00 12.20 12.40 12.60 12.71 13.20 13.50 13.80 14.10 14.40 14.70 15.00 15.30 Risk(Standard Deviation%) Risk(Standard Deviation°A) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 10.05 12.51 • Total Fund(Gross) 2.46 15.08 • Total Fund Policy 10.19 11.26 • Total Fund Policy 3.36 13.37 Median 9.21 11.23 Median 2.77 13.66 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.12 106.15 116.42 -1.01 0.01 0.83 1.10 7.77 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.92 1.00 6.76 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.86 108.04 117.86 -1.10 -0.22 0.19 1.11 10.12 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.26 1.00 8.68 THE LBOGDAHN 30 GROUP. Performance Review Total Domestic Equity As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Domestic Equity 12,788 68 - - -28 -2 51 874 13,751 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Domestic Equity 10,637 268 - - -107 -6 202 2,756 13,751 Peer Group Analysis-IM U.S. Large Cap Core Equity(SA+CF) I Cumulative Performance $175.00 40.00 $160.00 $157.69 35.00 30.00 0 0 $140.00 $137.01 • • 25.00 c 20.00 $120.00 7. 15.00 - 0 • $100.00 ■ 10.00 - 5.00 - $ao.00 - o.00 - -5.00 - $60.00 ■ I I I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/12 • Total Domestic Equity 7.22 (24) 27.76 (65) 27.76 (65) 11.15 (85) 12.16 (63) 7.80 (51) 1.13 (62) Total Domestic Equity O Total Domestic Equity Policy 6.23 (59) 30.20 (46) 30.20 (46) 14.42 (50) 13.26 (42) 7.84 (51) 1.08 (63) Total Domestic Equity Policy Median 6.43 29.91 29.91 14.38 12.82 7.86 1.60 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total Domestic Equity -5.85 (89) 13.48 (41) 11.53 (60) -17.20 (85) 0.27 (57) 6.86 (36) Total Domestic Equity Policy -3.15 (35) 12.87 (54) 12.12 (42) -15.28 (59) -0.03 (65) 6.38 (47) IM U.S.Large Cap Core Equity(SA+CF)Median -3.63 13.07 11.81 -14.84 0.45 6.30 THE c. BOGDAHN 31 `�� GROUP. Performance Review Total Domestic Equity As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years • 30.0 0.00 Over c 0 D l Performance • 20.0 w 25.00 O O O e O O-, 10.0 O O O o• u 50.00 Q O w O O O Q E• 0.0 - o •• • o • O e O O o • E 75.00 Q-10.0 ' g Q Q Under 15 F Performance e • 1 1 1 I I I I 100.00 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Total Domestic Equity Policy(%) • Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • Total Domestic Equity 20 2 (10%) 9 (45%) 5 (25%) 4 (20%) O Total Domestic Equity Policy 20 0 (0%) 5 (25%) 13 (65%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.48 13.20 0 1.60 c 12.80 c 1.40 rr 12.40 rr 1.20 12.00 • O • I I 17.70 17.80 17.90 18.00 18.10 18.20 18.30 18.40 18.50 18.60 18.68 21.40 21.60 21.80 22.00 22.20 22.40 22.56 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 12.16 18.55 • Total Domestic Equity 1.13 22.40 O Total Domestic Equity Policy 13.26 17.78 0 Total Domestic Equity Policy 1.08 21.74 Median 12.82 17.73 Median 1.60 21.42 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.92 100.98 106.53 -1.57 -0.27 0.75 1.06 10.31 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.85 1.00 9.69 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 4.80 102.30 101.47 0.19 0.06 0.12 1.03 14.76 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.12 1.00 14.25 THE [ BOGDAHN 32 GROUP. Performance Review Lateef Asset Mgmt.Equity As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Lateef Asset Mgmt.Equity 6,610 34 - - -17 -1 12 498 7,136 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Lateef Asset Mgmt.Equity 5,332 99 - - -62 -3 59 1,711 7,136 Peer Group Analysis-IM U.S. Large Cap Growth Equity(SA+CF) Cumulative Performance $136.20 40.00 $130.00 $125.72 35.00 • • $120.00 ^"17.28 30.00 O O $110.00 - 25.00 - • 20.00 - $100.00 ■ 1 ru• 15.00 - • • p $90.00 ■ \ilk 10.00 - - $80.00 - 0.00 $70.00 - o.00 - $60.00 -5.00 - - $50.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 9/12 • Lateef Asset Mgmt.Equity 7.71 (16) 33.21 (8) 33.21 (8) 14.74 (41) 13.80 (43) 10.32 (29) 4.68 (15) Lateef Asset Mgmt.Equity O Russell 1000 Growth Index 6.11 (54) 29.19 (37) 29.19 (37) 15.79 (27) 14.73 (29) 10.34 (29) 3.24 (34) Russell 1000 Growth Index Median 6.20 27.60 27.60 14.02 13.12 8.88 2.47 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Lateef Asset Mgmt.Equity -5.27 (53) 17.31 (26) 11.29 (24) -16.55 (76) 1.44 (29) 6.57 (31) Russell 1000 Growth Index -4.02 (29) 14.69 (63) 10.61 (37) -13.14 (27) 0.76 (48) 6.03 (47) IM U.S.Large Cap Growth Equity(SA+CF)Median -5.12 15.30 10.10 -14.61 0.64 5.84 THE ( BOGDAHN 33 `` ., GROUP. Performance Review Lateef Asset Mgmt.Equity As of September 30.2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years °%30.0 • 0.00 • Over m O '� Performance O O O 0 O 0 20.0 - w w 25.00 O O Q 0 ■ • • • 10.0 •• 50.00 0 O O O O O Q Q Q • T, a `a 0.0 + • E 75.00 `35 Under w Performance I I I I I I I II 100.00 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 30.7 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Russell 1000 Growth Index(%) • Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • Lateef Asset Mgmt.Equity 9 4 (44%) 4 (44%) 1 (11%) 0 (0%) O Russell 1000 Growth Index 20 0 (0%) 12 (60%) 8 (40%) 0 (0%) Peer Group Scattergram-3 Years . Peer Group Scattergram-5 Years 14.98 0 4.80 • 14.40 -4.00 E c 13.80 w v 0 re re • 3.20 13.20 2.40 1 17.70 18.00 18.30 18.60 18.90 19.20 19.50 19.80 21.20 21.40 21.60 21.80 22.00 22.20 22.40 22.60 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Lateef Asset Mgmt.Equity 13.80 19.60 • Lateef Asset Mgmt.Equity 4.68 21.33 O Russell 1000 Growth Index 14.73 17.71 0 Russell 1000 Growth Index 3.24 21.63 Median 13.16 18.65 Median 2.48 22.44 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Lateef Asset Mgmt.Equity 4.06 106.08 115.26 -2.02 -0.13 0.81 1.10 10.09 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.94 1.00 9.29 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Lateef Asset Mgmt.Equity 6.78 99.90 94.45 1.70 0.19 0.30 0.92 12.46 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.23 1.00 14.00 Th THE ( BDGDAHN 34 GROUP. Performance Review Dalton All Cap Value Equity As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Dalton All Cap Value Equity 6,179 34 - - -12 -1 40 375 6,615 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Dalton All Cap Value Equity 5,305 169 - - -45 -3 143 1,045 6,615 Peer Group Analysis-IM U.S.All Cap Value Equity(SA+CF) Cumulative Performance $180.00 40.00 35.00 $170.00 $165.86 30.00 0 0 $160.00 .156.99 25.00 $150.00 • • /111111\ a 20.00 $140.00 u 15.00 re 0 $130.00 II 10.00 • O • $120.00 / 5.00 ■ 0.00 $110.00 -5.00 $100.00 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 8i09 3/10 12/10 9/11 9/12 • Dalton All Cap Value Equity 6.71 (28) 22.33 (82) 22.33 (82) 7.60 (93) 10.53 (66) N/A N/A - Dalton All Cap Value Equity O Russell 3000 Value Index 6.44 (32) 31.05 (16) 31.05 (16) 13.20 (35) 11.83 (44) 5.69 (86) -0.72 (83) Russell 3000 Value Index Median 5.67 27.75 27.75 12.52 11.22 7.50 1.50 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Dalton All Cap Value Equity -6.46 (85) 9.65 (76) 11.77 (68) -17.84 (61) -0.86 (70) 7.13 (44) Russell 3000 Value Index -2.26 (20) 11.16 (57) 13.33 (33) -16.63 (49) -0.68 (66) 6.47 (49) IM U.S.All Cap Value Equity(SA+CF)Median -4.03 11.48 12.30 -16.92 -0.09 6.37 THE CL-: BOGDAHN 35 GROUP. Performance Review Dalton All Cap Value Equity As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years ▪16.6 0.00 >.16.0 Over c Performance co re c 15.0 - I w 25.00 l■ w ✓ c 14.0 °1 50.00 • 13.0 a Q n (j I E 75.00 ' O O C) LI 0 0 0 04 12.0 11.0 - Under 100.00 A X Performance 12/07 6108 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 I I I 11.0 12.0 13.0 14.0 15.0 16.0 16.6 5-25 25-Median Median-75 75-95 Russell 3000 Value Index(%) Total Period Count Count Count Count Earliest Date X Latest Date • Dalton All Cap Value Equity 2 0 (0%) 0 (0%) 2(100%) 0 (0%) • Russell 3000 Value Index 20 0 (0%) 2 (10%) 5(25%) 13 (65%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years - 12.00 0 1.60 iS 11.50 0.80 w 11.00 w ono re re 10.50 -0 - 0 -0.80 I I I I - 1 1 17.80 17.90 18.00 18.10 18.20 18.30 18.40 18.50 18.59 23.00 23.10 23.20 23.30 23.40 23.50 23.60 23.70 23.75 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Dalton All Cap Value Equity 10.53 17.86 • Dalton All Cap Value Equity N/A N/A • Russell 3000 Value Index 11.83 17.82 • Russell 3000 Value Index -0.72 23.05 Median 11.22 18.49 _ Median 1.50 23.66 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Dalton All Cap Value Equity 4.06 99.14 104.49 -1.23 -0.26 0.67 1.01 10.69 Russell 3000 Value Index u.00 100.00 100.00 1.00 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Dalton All Cap Value Equity N/A N/A N/A N/A N/A N/A N/A N/A Russell 3000 Value Index 0.00 100.00 100.00 0.00 1.00 15.38 THE r BOGDAHN 36 \,-.....? GROUP. Performance Review Total International Equity As of September 30,2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total International Equity 3,466 8 - - -8 -1 10 381 3,856 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total International Equity 3,093 33 - - -33 -3 95 670 3,856 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Aim Cumulative Performance $209.50 30.00 $200.00 25.00 • • / $180.00 \ 20.00 $160.00 / $161.45 15.00 1 a • Q 43.60 10.00 • $140.00 0 • • r• 5.00 $120.00 al di 0.00 0 $100.00 • -5.00 $80.00 -10.00 -15.00 - $60.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 1 1 1 1 1 • Total International Equity 11.28 (1) 24.74 (2) 24.74 (2) 6.69 (9) 8.33 (5) 9.20 (10) -2.98 (48) 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/12 O MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.04 (59) 2.59 (64) 2.89 (68) -4.77 (73) Total International Equity MSCI EAFE Index Median 7.33 15.01 15.01 2.66 3.59 3.70 -3.28 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total International Equity -6.02 (33) 17.64 (2) 1.40 (91) -21.20 (79) 0.67 (72) 4.69 (23) MSCI EAFE Index -6.85 (50) 10.98 (50) 3.38 (57) -18.95 (55) 1.83 (42) 3.45 (54) IM International Large Cap Value Equity(SA+CF)Median -6.86 10.89 3.59 -18.76 1.46 3.55 alliN THE (r 1 BOGDAHN 37 ``� GROUP. Performance Review Total International Equity As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 • • • • 33.0 Over c Performance • f0 a cr 22.0 w 25.00 O w A 0 11.0 x •• O Q • 50.00 8 m 0.0 •• O 0 0 O O O v -11.0 a E 75.00 O O O O O O O O O ` • O - u Under O 0 0 0 O Too -22.0 - Performance I I I I I 100.00 • 0 0 0 o -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 MSCI EAFE Index(%) 4) Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • Total International Equity 20 5 (25%) 2 (10%) 3 (15%) 10 (50%) 0 MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 9.29 8.00 • -2.80 • -3.50 c 6.00 E > 4.00 -4.20 ■ 2.00 O -4.90 - 0 T I 18.50 19.00 19.50 20.00 20.50 21.00 21.50 22.00 22.50 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 32.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 8.33 22.48 • Total International Equity -2.98 31.35 O MSCI EAFE Index 2.59 19.14 0 MSCI EAFE Index -4.77 25.51 Median 3.59 18.90 Median -3.28 24.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 6.54 119.25 98.53 5.75 0.91 0.47 1.08 13.79 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.23 1.00 13.31 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 8.36 114.15 104.52 3.18 0.35 0.00 1.12 20.04 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A -0.12 1.00 17.73 THE BOGDAHN 38 Lir, GROUP. Performance Review RBC Global (Voyageur) As of September 30,2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 RBC Global(Voyageur) 3,466 8 - - -8 -1 10 381 3,856 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 RBC Global(Voyageur) 3,093 33 - - -33 -3 95 670 3,856 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance $109.00 30.00 $100.00 25.00 • • $95.70 I 20.00 $90.00 15.00 O • $80.00 $79.67 .- 10.00 w O • •• 5.00 $70.00 Al a 0.00 O $60.00 -5.00 $50.00 -10.00 -15.00 - $40.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global(Voyageur) 11.28 (1) 24.74 (2) 24.74 (2) 6.69 (9) 8.33 (5) 9.20 (10) N/A 2/08 9/08 6/09 3/10 12/10 9/11 9/12 O MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.04 (59) 2.59 (64) 2.89 (68) -4.77 (73) RBC Global(Voyageur) MSCI EAFE Index Median 7.33 15.01 15.01 2.66 3.59 3.70 -3.28 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 RBC Global(Voyageur) -6.02 (33) 17.64 (2) 1.40 (91) -21.20 (79) 0.67 (72) 4.69 (23) MSCI EAFE Index -6.85 (50) 10.98 (50) 3.38 (57) -18.95 (55) 1.83 (42) 3.45 (54) IM International Large Cap Value Equity(SA+CF)Median -6.86 10.89 3.59 -18.76 1.46 3.55 THE r 1 BOGDAHN 39 `� GROUP. Performance Review RBC Global (Voyageur) As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 -, . • • • 30.0 Over • c • `" i Performance m e r. 25.00 'w 20.0 - = O 0 a . • 0 50.00 O Q Q o 10.0 - x a O Q Q Q O O O Q 0 E 75.00 O O O o O 3 0.0 - • w C..) Under 100.00 re Performance 12/07 6108 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 -10.0 I -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 31.5 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count • Over Performance 4 Earliest Date X Latest Date • RBC Global(Voyageur) 8 5 (63%) 2 (25%) 1 (13%) 0 (0%) 0 MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 9.29 -3.06 8.00 • - -3.50 c 6.00 E -4.00 > re 4.00 re -4.50 2.00 0 0 - 18.50 19.00 19.50 20.00 20.50 21.00 21.50 22.00 22.50 23.00 24.20 24.40 24.60 24.80 25.00 25.20 25.40 25.60 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 8.33 22.48 • RBC Global(Voyageur) N/A N/A O MSCI EAFE Index 2.59 19.14 0 MSCI EAFE Index -4.77 25.51 Median 3.59 18.90 Median -3.28 24.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 6.54 119.25 98.53 5.75 0.91 0.47 1.08 13.79 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.23 1.00 13.31 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A -0.12 1.00 17.73 THE LBOGDAHN 40 GROUP. Performance Review Total Domestic Fixed Income Composite As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Domestic Fixed Income Composite 5,617 6 - - - - 4 96 5,723 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Domestic Fixed Income Composite - -474 - - -9 -1 20 6,187 5,723 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) moi Cumulative Performance 11.67 $215.00 $200.00 10.00 $192:06 $180.00 8.00 Lill E • $160.00 6.00 w • all re 4.00 - 0 $140.00 i - . $120.00 2.00 0.00 I $100.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/12 • Total Domestic Fixed Income Composite 1.79 (47) 5.88 (45) 5.88 (45) 5.27 (20) 6.59 (21) 7.56 (40) 6.14 (70) Total Domestic Fixed Income Composite O Total Domestic Fixed Policy 1.36 (86) 4.31 (86) 4.31 (86) 4.27 (66) 5.34 (78) 6.41 (88) 5.96 (78) Total Domestic Fixed Policy Median 1.74 5.63 5.63 4.57 5.83 7.34 6.47 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total Domestic Fixed Income Composite 1.78 (16) 1.10 (53) 1.08 (49) 2.02 (49) 2.30 (6) 1.15 (14) Total Domestic Fixed Policy 1.32 (70) 0.66 (80) 0.91 (77) 2.30 (32) 2.17 (18) 0.48 (69) IM U.S.Intermediate Duration(SA+CF)Median 1.46 1.17 1.08 2.01 2.00 0.60 THE c. BOGDAHN 41 `�� GROUP. Performance Review Total Domestic Fixed Income Composite As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years '10.0 0.00 o Over : c • • U Performance Co E 8.0 • w 25.00 e • • o X • O t. O p 0 6.0 - • • 0 50.00 0 O Q Q V O 4.0 a 75.00 p Q • p 0 0 0 • Under 2.0 w O O O O O w Performance re I I I - I I I I 100.00 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Total Domestic Fixed Policy(%) • Over Performance • Under Performance Total 5-25 25-Median Median-75 75-95 Period Count Count Count Count ▪ Earliest Date X Latest Date • Total Domestic Fixed Income Composite 20 4(20%) 1 (5%) 4(20%) 11 (55%) O Total Domestic Fixed Policy 20 0(0%) 3(15%) 14(70%) 3(15%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 6.80 6.55 6.50 • 6.40 6.00 > > 6.20 v v • w 5.50 re 0 6.00 0 1 1.90 1.95 2.00 2.05 2.10 2.15 2.20 2.24 2.40 2.60 2.80 3.00 3.20 3.40 3.60 3.74 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 6.59 1.92 • Total Domestic Fixed Income Composite 6.14 3.56 O Total Domestic Fixed Policy 5.34 1.94 • Total Domestic Fixed Policy 5.96 2.48 Median 5.83 2.20 Median 6.47 3.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Fixed Income Composite 0.87 114.94 77.08 1.26 1.36 2.73 0.99 1.00 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 2.37 1.00 1.01 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Fixed Income Composite 2.66 107.68 124.16 0.34 0.08 1.36 0.98 2.36 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.24 THE [� BOGDAHN 42 \`� GROUP. Performance Review Galliard Core Fixed Income As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Galliard Core Fixed Income 4,415 - - - - - - 80 4,495 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Galliard Core Fixed Income 4,761 -504 - - -6 - - 244 4,495 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) _IMI_ Cumulative Performance 11.67 $139.55 $135.00 11 g.$A 10.00 $130.00 - 8.00 $125.00 - iii2• $120.00 - 6.00 • • w • $115.00 - re 4.00 O O O $110.00 - $105.00 ■ 2.00 • O $100.00 0.00 $95.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 9/12 • Galliard Core Fixed Income 1.80 (46) 5.82 (47) 5.82 (47) 4.99 (32) 6.51 (22) 7.88 (29) 5.90 (81) Galliard Core Fixed Income O Barclays Intermediate Aggregate Index 1.36 (86) 4.31 (86) 4.31 (86) 4.27 (66) 5.34 (78) 6.41 (88) 5.96 (78) Barclays Intermediate Aggregate Index Median 1.74 5.63 5.63 4.57 5.83 7.34 6.47 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Galliard Core Fixed Income 1.84 (14) 1.01 (61) 1.05 (57) 2.13 (40) 2.17 (18) 0.88 (24) Barclays Intermediate Aggregate Index 1.32 (70) 0.66 (80) 0.91 (77) 2.30 (32) 2.17 (18) 0.48 (69) IM U.S.Intermediate Duration(SA+CF)Median 1.46 1.17 1.08 2.01 2.00 0.60 THE C 1 BOGDAHN 43 ``� GROUP. Performance Review Galliard Core Fixed Income As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years w 9.9 0.00 E Over c 2 9.0 Performance • Co e • w 25.00 O S x 8.0 • c 0 • 50.00 Q O Q O O 7.0 X + a 0 0 O p 0 0 0 O 0 8 0 0 0 0 U 6.0 75.00 0 '° • Under ' 5.0 Performance re i i 1 I I I 100.00 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 9.9 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Barclays Intermediate Aggregate Index(%) 4) Over Performance 0 Under Performance Total 5-25 25-Median Median-75 75-95 Period Count Count Count Count Earliest Date X Latest Date • Galliard Core Fixed Income 9 5(56%) 2(22%) 0(0%) 2(22%) 0 Barclays Intermediate Aggregate Index 20 0(0%) 4(20%) 14(70%) 2(10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 6.70 6.56 6.40 • 6.40 E 6.00 E 6.20 w w w 5.60 w 6.00 5.20 0 0 • 1.95 2.00 2.05 2.10 2.15 2.20 2.23 2.20 2.40 2.60 2.80 3.00 3.20 3.40 3.60 3.80 4.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 6.51 2.19 • Galliard Core Fixed Income 5.90 3.78 o Barclays Intermediate Aggregate Index 5.34 1.94 0 Barclays Intermediate Aggregate Index 5.96 2.48 Median 5.83 2.20 Median 6.47 3.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.80 112.16 67.69 1.29 1.39 2.78 0.97 0.98 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 2.37 1.00 1.01 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 2.20 101.73 111.17 0.17 -0.02 1.41 0.96 2.15 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.24 THE ( BDGDAHN 44 GROUP. Performance Review Galliard TIPS As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Galliard TIPS 1,201 6 - - - - 4 17 1,228 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Galliard TIPS 1,133 30 - - -3 -1 17 52 1,228 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance 17.55 $145.00 16.00 $140.00 $137.37 14.00 $135.00 12.00 $130.00 10.00 $125.00 w 8.00 $120.00 re 6.00 • o • o • $115.00 $110.00 4.00 $105.00 2.00 • O $100.00 0.00 J $95.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 9/12 • Galliard TIPS 1.74 (96) 6.01 (100) 6.01 (100) 6.37 (98) 6.68 (98) 5.99 (100) 6.33 (99) Galliard TIPS O BC U.S.Treasury Inflation Notes: 1-10 Year 1.71 (97) 6.32 (100) 6.32 (100) 6.76 (97) 6.97 (97) 6.23 (96) 6.56 (97) BC U.S.Treasury Inflation Notes:1-10 Year Median 2.18 9.20 9.20 9.49 9.43 8.59 8.15 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Galliard TIPS 1.59 (75) 1.16 (43) 1.39 (94) 1.57 (92) 2.84 (90) 2.23 (35) BC U.S.Treasury Inflation Notes:1-10 Year 1.34 (84) 1.44 (22) 1.69 (90) 1.65 (91) 2.96 (78) 2.35 (16) IM U.S.TIPS(SA+CF)Median 3.15 1.00 2.67 4.55 3.56 2.11 surat THE c BDGDAHN 45 � GROUP. Performance Review Galliard TIPS As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 9.0 - Over c Performance f0 re 0 ^8.0 - • 0 25.00 O 0 'O • 0 50.00 0 0 `6.0 - • a 0 O A O O - 75.00 0 5.0 - To ` v 4.0 re O . 00O • . e • - Under 100.00 • 3.0 - Performance I 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 I I I I I I I I I I I I I 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 Total 5-25 25-Median Median-75 75-95 BC U.S.Treasury Inflation Notes:1-10 Year(%) Period Count Count Count Count • Under Performance + Earliest Date X Latest Date • Galliard TIPS 9 0(0%) 0(0%) 0(0%) 9(100°, 0 BC U.S.Treasury Inflation Notes:1-10 Year 20 2(10%; 2(10%; 6(30%; 10(50%; Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 9.85 I 8.40 ^9.00 7.80 c c .; 8.00 .; 7.20 w w re re 7.00 O• 6.60 • 0 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00 3.14 4.20 4.30 4.40 4.50 4.60 4.70 4.80 4.90 5.00 5.06 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 6.68 1.50 • Galliard TIPS 6.33 4.28 O BC U.S.Treasury Inflation Notes:1-10 Year 6.97 1.44 0 BC U.S.Treasury Inflation Notes:1-10 Year 6.56 4.96 Median 9.43 2.92 Median 8.15 4.85 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.94 96.89 100.47 -0.03 -0.30 2.01 0.96 1.36 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 2.11 1.00 1.23 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.30 93.38 88.98 0.45 -0.19 1.02 0.89 3.58 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 0.97 1.00 4.07 THE L--... BDGDAHN 46 � GROUP. Performance Review Total Global Fixed Income Composite As of September 30,2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Global Fixed Income Composite 978 -11 - - - - 11 41 1,019 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Global Fixed Income Composite - 935 - - - - 65 19 1,019 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 17.37 - $113.95 16.00 $112.00 $111.85 14.00 $110.00 12.00 $108.00 10.00 $106.00 v 8.00 re 6.00 $104.00 $103.41 4.00 $102.00 2.00 $100.00 0.00 $98.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/12 3/12 6/12 9/12 • Total Global Fixed Income Composite 5.40 (12) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Composite O Total Global Fixed Income Policy 2.99 (75) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy Median 3.45 7.50 7.50 4.37 5.59 7.62 5.61 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total Global Fixed Income Composite -1.00 (95) 7.19 (4) N/A N/A N/A N/A Total Global Fixed Income Policy 0.92 (37) -0.51 (100) N/A N/A N/A N/A IM Global Fixed Income(MF)Median 0.58 2.50 0.88 -1.49 2.23 1.54 THE r BOGDAHN 47 ``� GROUP. Performance Review Templeton Global Bond Fund (TGBAX) As of September 30,2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Templeton Global Bond Fund(TGBAX) 978 -11 - - - - 11 41 1,019 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Templeton Global Bond Fund(TGBAX) - 935 - - - - 65 19 1,019 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 17.37 $113.95 16.00 $112.00 $111.85 14.00 $110.00 12.00 $108.00 10.00 E $106.00 w 8.00 re $104.00 $103.41 6.00 • 4.00 O O OM t i $102.00 2.00 $100.00 0.00 $98.00 I I I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/12 3/12 6/12 9/12 • Templeton Global Bond Fund(TGBAX) 5.40 (12) N/A N/A N/A N/A N/A N/A Templeton Global Bond Fund(TGBAX) • Citigroup World Government Bond 2.99 (75) 3.28 (96) 3.28 (96) 3.94 (63) 4.29 (84) 6.59 (68) 6.45 (29) Citigroup World Government Bond Median 3.45 7.50 7.50 4.37 5.59 7.62 5.61 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Templeton Global Bond Fund(TGBAX) -1.00 (95) 7.19 (4) N/A N/A N/A N/A Citigroup World Government Bond 0.92 (37) -0.51 (100) -0.13 (87) 2.38 (15) 3.33 (10) 0.65 (78) IM Global Fixed Income(MF)Median 0.58 2.50 0.88 -1.49 2.23 1.54 THE 48 ` BOGDAHN ` ., GROUP. Performance Review Total Real Estate As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Real Estate 2,344 - - -9 -2 - 11 52 2,396 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Total Real Estate 2,182 - - -34 -27 - 78 197 2,396 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.21 $110.00 24.00 $105.00 20.00 $100.00 16.00 • $95.00• $94.92 12.00 E 8.00 • $90.00 w $85.00 w 4.00 • 0.00 ■ $80.00 -4.00 $75.00 -8.00 $70.00 -12.00 I $65.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 9/12 • Total Real Estate 2.68 (58)12.75 (42)12.75 (42)14.27 (63)10.28 (83) -2.43 (47) -1.04 (40) Total Real Estate O NCREIF Fund Index-Open End Diversified Core(EW) N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core(EW) Median 2.76 12.29 12.29 15.92 12.62 -3.88 -3.01 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Total Real Estate 2.67 (67) 2.99 (73) 3.85 (36) 3.17 (49) 3.51 (77) 4.39 (57) NCREIF Fund Index-Open End Diversified Core(E\ 2.58 (71) 2.82 (76) 2.97 (52) 3.52 (38) 4.62 (45) 4.01 (69) IM U.S.Open End Private Real Estate(SA+CF)Median 2.95 3.55 3.04 3.15 4.32 4.49 oftlks THE fc J BOGDAHN 49 ``� GROUP. Performance Review Total Real Estate As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years No data found. - 0.00 cr re o 25.00 O O O Q e e e :u O 0 Q 50.00 0 0 v o a E 75.00 • • • w 100.00 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 5-25 25- Median- Total 75-95 Period Count Median 75 Count Count Count • Total Real Estate 9 0(0%) 4(44°A 3(33°A 2(22°A O NCREIF Fund Index-Open End Diversified Core(EVV) 19 0(0%) 13(68°A 6(32°A 0(0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 12.80 -0.74 • 12.00 V -1.40 E c 11.20 -2.10 w v a a 10.40 • -2.80 4.70 4.80 4.90 5.00 5.10 5.20 5.30 5.40 5.50 5.60 5.70 10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50 Risk(Standard Deviation%) Risk(Standard Deviation°A) Return Standard Return Standard Deviation Deviation • Total Real Estate 10.28 4.80 • Total Real Estate -1.04 10.19 O NCREIF Fund Index-Open End Diversified Core(EVV) N/A N/A 0 NCREIF Fund Index-Open End Diversified Core(EVV) N/A N/A Median 12.62 5.59 Median -3.01 14.04 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core(EVV) N/A N/A N/A N/A N/A N/A N/A N/A Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core(EVV) N/A N/A N/A N/A N/A N/A N/A N/A IIIIISs THE L.... BOGDAHN 50 � GROUP. Performance Review American Core Realty Fund As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 American Core Realty Fund 718 - - -9 -2 - 11 8 725 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 American Core Realty Fund 690 - - -34 -8 - 42 36 725 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) I Cumulative Performance 26.21 $118.75 24.00 $115.00 $111.85 20.00 $110.00 16.00 $105.00 • 0 $100.00 12.00 • $95.00 $94.15 E 8.00 $90.00 w w 4.00 • Ci $85.00 III 0.00 $80.00 -4.00 $75.00 -8.00 $70.00 -12.00 $65.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 9/12 • American Core Realty Fund 2.58 (62) 11.56 (55) 11.56 (55) 13.81 (81) 9.98 (84) -2.63 (48) -1.20 (41) American Core Realty Fund • NCREIF Property Index 2.34 (75) 11.00 (81) 11.00 (81) 13.52 (90) 10.90 (80) 1.53 (9) 2.27 (5) NCREIF Property Index Median 2.76 12.29 12.29 15.92 12.62 -3.88 -3.01 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 American Core Realty Fund 2.72 (66) 3.02 (65) 2.77 (66) 3.19 (44) 3.83 (63) 4.48 (54) NCREIF Property Index 2.68 (67) 2.59 (83) 2.96 (52) 3.30 (41) 3.94 (63) 3.36 (90) IM U.S.Open End Private Real Estate(SA+CF)Median 2.95 3.55 3.04 3.15 4.32 4.49 THE (( BOGDAHN 51 `'-" GROUP. Performance Review American Core Realty Fund As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years C 12.0 Over . 0.00 0 0000 0000 000 i Performance re O • 8.0 w 25.00 • 0 0 i re 4.0 0 u 50.00 • O O O • 0 w 0 O O Q Q .0 Q 0• -4.0 O E 75.00 • A -8.0 c re U Under 100.00 III I i -12.0 Performance 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 I I I I -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 13.4 NCREIF Property Index(%) Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count • Under Performance + Earliest Date X Latest Date • American Core Realty Fund 9 0 (0%) 4 (44%) 2 (22%) 3 (33%) • NCREIF Property Index 20 13 (65%) 2 (10%) 4 (20%) 1 (5%) Peer Group Scattergram-3 Years r Peer Group Scattergram-5 Years 13.00 3.10 I 2.00 0 12.00 E = 0.00 = 11.00 Q = v • re w -2.00 10.00 • _ I I I I - I I I I I 3.30 3.60 3.90 4.20 4.50 4.80 5.10 5.40 5.70 5.92 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • American Core Realty Fund 9.98 4.76 • American Core Realty Fund -1.20 10.14 • NCREIF Property Index 10.90 3.41 • NCREIF Property Index 2.27 7.53 Median 12.62 5.59 _ Median -3.01 14.04 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 1.73 99.21 200.36 -4.41 -0.46 2.03 1.35 2.47 NCREIF Property Index u.00 100.00 100.00 1.00 1.22 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 3.88 98.24 158.06 -3.84 -0.83 -0.14 1.27 8.77 NCREIF Property Index 0.00 100.00 100.00 0.00 1.00 5.74 PTHE BOGDAHN 52 GROUP. Page Intentionally Left Blank 53 Performance Review Intercontinental As of September 30.2012 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Intercontinental 1,626 - - - - - - 44 1,671 Financial Reconciliation October 1,2011 To September 30,2012 Market Value Net Management Other Apprec./ Market Value 10/01/2011 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2012 Intercontinental 1,493 - - - -19 - 36 161 1,671 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.21 $136.00 24.00 $132.00 $131.06 20.00 $128.00 16.00 • • • $124.00 12.00 $120.00 E 8.00 $116.00 w w 4.00 • $112.00 0.00 ■ $108.00 -4.00 $104.00 -8.00 $100.00 -12.00 J $96.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 • Intercontinental 2.72 (54)13.29 (40)13.29 (40)14.48 (62) N/A N/A N/A Intercontinental O NCREIF Fund Index-Open End Diversified Core(EW) N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core(EW) Median 2.76 12.29 12.29 15.92 12.62 -3.88 -3.01 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Intercontinental 2.65 (68) 2.97 (74) 4.35 (27) 3.17 (49) 3.36 (82) 4.35 (59) NCREIF Fund Index-Open End Diversified Core(E\ 2.58 (71) 2.82 (76) 2.97 (52) 3.52 (38) 4.62 (45) 4.01 (69) IM U.S.Open End Private Real Estate(SA+CF)Median 2.95 3.55 3.04 3.15 4.32 4.49 THE ( BOGDAHN r.54 `� GROUP. Manager Performance Reviews THh BOGDAHN 55 GROUP. Manager Composite Returns Gross and Net of Fees As of September 30,2012 Inception MANAGER QTR FYTD 1 YR 3 YR 5 YR Since Inception Date DGHM AIICap Value Equity(Gross) 6.66 (38) 22.15 (93) 22.15 (93) 10.36 (74) 3.41 (13) 12.95 (15) 01/01/1983 DGHM AIICap Value Equity(Net of 75 bp fee) 6.47 21.40 21.40 9.61 2.66 12.20 Russell 3000 Value Index 6.40 (44) 31.05 (27) 31.05 (27) 11.83 (51) -0.72 (75) 11.44 (73) U.S. Large Cap Value Equity(SA+CF)Median 6.13 28.62 28.62 11.88 0.57 12.37 Lateef Asset Mgmt Large Cap GARP Equity(Gross) 7.40 (22) 33.33 (7) 33.33 (7) 14.08 (39) 2.57 (48) 4.06 (63) 03/01/2007 Lateef Asset Mgmt Large Cap GARP Equity(Net of 100 bp fee) 7.15 32.33 32.33 13.08 1.57 3.06 Russell 1000 Growth Index 6.11 (54) 29.19 (37) 29.19 (37) 14.73 (29) 3.24 (34) 5.00 (44) U.S. Large Cap Growth Equity(SA+CF)Median 6.20 27.57 27.57 13.16 2.48 4.75 RBC International Equity(Gross) 11.25 (1) 24.65 (2) 24.65 (2) 8.15 (8) -2.29 (37) 9.11 (18) 07/01/1998 RBC International Equity(Net of 95 bp fee) 11.01 23.70 23.70 7.20 -3.24 8.16 MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.59 (64) -4.77 (73) 3.49 (98) International Large Cap Value Equity(SA+CF)Median 7.33 15.01 15.01 3.59 -3.28 6.30 Galliard Capital Mgmt Intermediate Core Fl(Gross) 1.88 (39) 5.90 (45) 5.90 (45) 6.00 (44) 6.63 (41) 6.29 (36) 10/01/1995 Galliard Capital Mgmt Intermediate Core Fl(Net of 25 bp fee) 1.82 5.65 5.65 5.75 6.38 6.04 Barclays Capital Intermediate Aggregate 1.36 (86) 4.31 (86) 4.31 (86) 5.34 (78) 5.96 (78) 5.98 (77) U.S. Intermediate Duration(SA+CF)Median 1.74 5.63 5.63 5.83 6.47 6.20 *Templeton GI Bond;Adv(TGBAX)(Net of fees) 5.40 (10) 13.25 (1) 13.25 (1) 8.30 (16) 9.75 (5) 8.58 (1) 02/01/1997 Citigroup Non-U.S.World Government Bond 3.98 (71) 3.45 (87) 3.45 (87) 4.01 (66) 6.55 (42) 5.83 (58) International Fixed Income(MF)Median 4.57 6.60 6.60 4.68 5.77 6.08 *Mutual Fund data is always presented net of fees. THE r BOGDAHN 56 GROUP Rolling Percentile Ranking Large Cap GARP Equity 20 Quarters Rolling Periods As of September 30,2012 Rolling Percentile Ranking vs.IM U.S.Large Cap Growth Equity(SA+CF) 0.0 25.0 fY N 50.0 d a Nd 75.0 100.0 3/12 6/12 9/12 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Large Cap GARP Equity 3 0 (0%) 1 (33%) 2 (67%) 0 (0%) Russell 1000 Growth Index 3 0 (0%) 3 (100%) 0 (0%) 0 (0%) Manager composite returns used for chart population. THE C BOGDAHN 57 GROUP. Relative Performance Large Cap GARP Equity Since Inception Ending September 30,2012 Relative Performance 11.0 10.0– 9.0– 8.0– 7.0– 6.0– 5.0– 4.0 3.0 2.0 1.0- , III ; _.1 . I1 . ■1 I■ 1.0– -2.0– IY -3.0- -4.0- -5.0- -6.0- -7.0- -8.0- -9.0- -10.0 - -11.0 - -12.0 - -13.0 - -14.0 - -15.0 ^ � 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. almN THE. [� BOGDAHN 58 \` ' GROUP. Performance Review Lateef Investment Management As of September 30.2012 Financial Reconciliation 1 Quarter AM No data found. Financial Reconciliation October 1,2011 To September 30,2012 No data found. Peer Group Analysis-IM U.S. Large Cap Growth Equity(SA+CF) Cumulative Performance I $140.00 40.00 35.00 $130.00 $130.60 • • 1 24.47 30.00 0 0 $120.00 25.00 $110.00 • 20.00 $100.00 u• 15.00 - • O • Q re $90.00 10.00 - • 0 5.00 - $80.00 I.0.00 - $70.00 -5.00 $60.00 I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 5/07 12/07 9/08 6/09 3/10 12/10 9/11 9/12 • Large Cap GARP Equity 7.40 (22) 33.33 (7) 33.33 (7) 14.65 (42) 14.08 (39) 9.89 (35) 2.57 (48) Large Cap GARP Equity • Russell 1000 Growth Index 6.11 (54) 29.19 (37) 29.19 (37) 15.79 (27) 14.73 (29) 10.34 (29) 3.24 (34) Russell 1000 Growth Index Median 6.20 27.60 27.60 14.02 13.12 8.88 2.47 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Large Cap GARP Equity -4.78 (43) 17.76 (20) 10.71 (35) -15.75 (65) 1.46 (28) 6.07 (46) Russell 1000 Growth Index -4.02 (29) 14.69 (63) 10.61 (37) -13.14 (27) 0.76 (48) 6.03 (47) IM U.S.Large Cap Growth Equity(SA+CF)Median -5.12 15.30 10.10 -14.61 0.64 5.84 THE BOGDAHN 59 cc., GROUP. Performance Review Lateef Investment Management As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years , 3 Yr Rolling Percentile Ranking-5 Years .°T_.. 30.0 y 0.00 0 a Over c Performance f0 'Q 20.0 w 25.00 O O i c R O O Q • w 10.0 0 50.00 O O O O O O O IP 7 w• O O O O O O O o.o • U E 75.00 °1 Under °1 -10.0 Performance re co .1 I I I I Ir I I I I 100.00 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 31.0 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Russell 1000 Growth Index(%) • Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • Large Cap GARP Equity 11 1 (9%) 6 (55%) 4 (36%) 0 (0%) O Russell 1000 Growth Index 20 0 (0%) 12 (60%) 8 (40%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 14.98 0 3.30 a 14.40 E • c 3.00 13.80 T, 02.70 re re 13.20 • 2.40 17.60 17.80 18.00 18.20 18.40 18.60 18.80 19.00 19.20 19.40 19.54 21.50 21.60 21.70 21.80 21.90 22.00 22.10 22.20 22.30 22.40 22.50 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Large Cap GARP Equity 14.08 19.21 • Large Cap GARP Equity 2.57 22.01 O Russell 1000 Growth Index 14.73 17.71 0 Russell 1000 Growth Index 3.24 21.63 Median 13.16 18.65 Median 2.48 22.44 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Large Cap GARP Equity 4.38 103.73 109.25 -1.48 -0.07 0.83 1.08 9.81 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.94 1.00 9.29 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Large Cap GARP Equity 6.82 97.66 100.08 -0.37 -0.10 0.19 0.94 13.02 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.23 1.00 14.00 Th THE LBOGDAHN so GROUP. Rolling Percentile Ranking AIICap Value 20 Quarters Rolling Periods As of September 30,2012 Rolling Percentile Ranking vs.IM U.S.Large Cap Value Equity(SA+CF) 0.0 1 25.0 jiii:I:ii Y c a IY N 1\A cu 50.0 d a I 71\ c L m it I.f�N 75.0 II6Mam 100.0 1 i i i i i i i i i i i i i i I i I i i i i i i 12/87 12/88 12/89 12/90 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 9/12 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count -AIICap Value 100 45 (45%) 18 (18%) 20 (20%) 17 (17%) - Russell 3000 Value Index 100 0 (0%) 38 (38%) 47 (47%) 15 (15%) Manager composite returns used for chart population. THE r BOGDAHN 61 N-4-....., GROUP, Relative Performance AIICap Value Since Inception Ending September 30,2012 Relative Performance 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 I I 1.0 IA`11 I I II'I I f I III 4ti11'• ', 1h111 '•• � I I I I I I I , 1111��I I l -2.0 ill -3.0 -4.0 I -5.0 -6.0 – -7.0 – -8.0– -9.0– 1/83 4/84 7/85 10/86 1/88 4/89 7/90 10/91 1/93 4/94 7/95 10/96 1/98 4/99 7/00 10/01 1/03 4/04 7/05 10/06 1/08 4/09 7/10 10/11 9/12 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. THE [� BOGDAHN 62 \` ' GROUP. Performance Review Dalton, Greiner, Hartman, Maher&Co., LLC As of September 30.2012 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2011 To September 30,2012 No data found. Peer Group Analysis-IM U.S. Large Cap Value Equity(SA+CF) Cumulative Performance $4,500.00 40.00 35.00 $4,000.00 ■ 3 742.17 30.00 0 0 $3,500.00 ■ 25.00 $3,000.00 ■ • • $2,500.00 ■ $2,507.13 • 20.00 w 15.00 $2,000.00 ■ re 0 10.00 • $1,500.00 ■ / 5.00 • • O $1,000.00 ■ 0.00 IM $500.00 -5.00 $0.00 -10.00 ($500.00) - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/83 12/85 12/88 12/91 12/94 12/97 12/00 12/03 12/06 12/09 9/12 • AIICap Value 6.66 (38) 22.15 (93) 22.15 (93) 7.35 (95) 10.36 (74) 6.85 (53) 3.41 (13) - AIICap Value O Russell 3000 Value Index 6.44 (44) 31.05 (27) 31.05 (27) 13.20 (46) 11.83 (51) 5.69 (75) -0.72 (75) Russell 3000 Value Index Median 6.13 28.62 28.62 12.99 11.88 6.89 0.57 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 AIICap Value -6.54 (88) 9.62 (80) 11.77 (66) -17.96 (74) -0.87 (70) 7.05 (36) Russell 3000 Value Index -2.26 (24) 11.16 (61) 13.33 (28) -16.63 (58) -0.68 (66) 6.47 (48) IM U.S.Large Cap Value Equity(SA+CF)Median -3.75 11.86 12.39 -16.17 -0.18 6.34 THE CL-: BOGDAHN 63 GROUP. Performance Review Dalton, Greiner, Hartman, Maher&Co., LLC As of September 30.2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 30.0 0.00 . • • . • • • • • • • e Over c 20.0 Performance co O re °. w 25.00 0 w, 10.0 � w Q e Q•> .f •n 0.0 0 0 i Q Q• 3 -10.0 0 0 0 O Under w O O O O O 4 -20.0 Performance re -I I I I 100.00 I I I I-20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Russell 3000 Value Index(%) 4) Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • AIICap Value 20 14 (70%) 3 (15%) 3 (15%) 0 (0%) O Russell 3000 Value Index 20 0 (0%) 2 (10%) 8 (40%) 10 (50%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 4.15 12.00 U • 2.80 - 11.40 E E 1.40 w 10.80 w re re 0.00 10.20 • 0 -1.40 17.79 17.82 17.85 17.88 17.91 17.94 17.97 18.00 18.03 18.06 21.00 21.30 21.60 21.90 22.20 22.50 22.80 23.10 23.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • AIICap Value 10.36 17.90 • AIICap Value 3.41 21.13 O Russell 3000 Value Index 11.83 17.82 0 Russell 3000 Value Index -0.72 23.05 Median 11.88 18.04 Median 0.57 21.97 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture AIICap Value 4.09 99.09 105.21 -1.41 -0.29 0.66 1.02 10.76 Russell 3000 Value Index 0.00 100.00 100.00 0.00 N/A 0.77 1.00 9.96 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture AIICap Value 5.97 101.68 87.85 4.00 0.63 0.23 0.89 13.54 Russell 3000 Value Index 0.00 100.00 100.00 0.00 N/A 0.03 1.00 15.38 THE r BOGDAHN 64 ``� GROUP. Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of September 30,2012 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 acu R fY N 50.0 d a Nd 75.0 100.0 6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count International Equity 38 21 (55%) 2 (5%) 10 (26%) 5 (13%) MSCI EAFE Index 38 0 (0%) 0 (0%) 17 (45%) 21 (55%) Manager composite returns used for chart population. THE (� BOGDAHN 65 `r GROUP. Relative Performance International Equity Since Inception Ending September 30,2012 Relative Performance 16.0 14.0 12.0 10.0 y 8.0 6.0• 4.0- 2.0 _ I_ I 11111 1.• AI [II ,lI 1 III 1■I I 11111_ _� II I , I II �I I� I II . . _ I ,1I 2.0 ' II r I I' 1 '1 1I 1 I■ ■I� • -I,�-II �■ 11 H ■� I I I I I I I -6.0- -8.0- -10.0 - -12.0 - -14.0 - -16.0 - -18.0 - -20.0 - -20.9 • i i i i 7/98 4/99 1/00 10/00 7/01 4/02 1/03 10/03 7/04 4/05 1/06 10/06 7/07 4/08 1/09 10/09 7/10 4/11 1/12 9/12 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. r\ THE (� \ BOGDAHN 66 ``� GROUP. Performance Review RBC Global Asset Management As of September 30,2012 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2011 To September 30,2012 No data found. Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance 30.00 - $440.00 • $400.00 - 25.00 - O O 20.00 - $360.00 ■ $346.17 $320.00 - 15.00 - O O F 10.00 - $280.00 ■ • • • $240.00 ■ 5.00 0.00 $200.00 ■ - $160.00 ■ t 163.05 -5.00 - $1zo.00 ■ -10.00 - $80.00 - -15.00 $40.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 1 1 1 1 1 1 1 1 1 1 1 • International Equity 11.25 (1) 24.65 (2) 24.65 (2) 6.60 (9) 8.15 (8) 9.09 (11) -2.29 (37) 8/98 12/99 6/01 12/02 6/04 12/05 6/07 12/08 6/10 9/12 • MSCI EAFE Index 6.98 (62) 14.33 (54) 14.33 (54) 2.04 (59) 2.59 (64) 2.89 (68) -4.77 (73) International Equity MSCI EAFE Index Median 7.33 15.01 15.01 2.66 3.59 3.70 -3.28 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 International Equity -6.04 (35) 17.61 (2) 1.39 (91) -21.22 (79) 0.64 (72) 4.69 (24) MSCI EAFE Index -6.85 (50) 10.98 (50) 3.38 (57) -18.95 (55) 1.83 (42) 3.45 (54) IM International Large Cap Value Equity(SA+CF)Median -6.86 10.89 3.59 -18.76 1.46 3.55 THE (r 1 BOGDAHN 67 ``� GROUP. Performance Review RBC Global Asset Management As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 30.0 Over • c 0.00 • YI Performance - • • •• - 20.0 •• v 25.00 • a O cr W 10.0 X c O AK To W _ . 50.00 Q 0 0.0 O - c a Q O -10.0 - % • E 75.00 O O O O O O O e 8 Q O c -20.0 ■ • Performance Peance • • • • • I I I I I 1 1 1 1 1 1 1 100.00 • -25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 33.9 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 MSCI EAFE Index(%) 4) Over Performance • Under Performance Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Earliest Date X Latest Date • International Equity 20 5 (25%) 3 (15%) 4 (20%) 8 (40%) O MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 9.06 - 8.00 • -2.00 • 6.00 c -3.00 ° 4.00 ru -4.00 2.00 0 -5.00 0 r 18.50 19.00 19.50 20.00 20.50 21.00 21.50 22.00 22.50 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 32.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 8.15 22.50 • International Equity -2.29 31.08 O MSCI EAFE Index 2.59 19.14 0 MSCI EAFE Index -4.77 25.51 Median 3.59 18.90 Median -3.28 24.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 6.53 119.00 98.90 5.57 0.89 0.47 1.08 13.86 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.23 1.00 13.31 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 8.12 116.54 104.59 3.93 0.44 0.03 1.12 20.04 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A -0.12 1.00 17.73 THE 68 ` BOGDAHN ` ., GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30.2012 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2011 To September 30,2012 No data found. Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 11.67 $330.00 $300.00 10.00 $282.22 $270.00 68.39 8.00 • $240.00 E 6.00 • • • Q $210.00 w • re O O O $180.00 4.00 $150.00 2.00 • Q $120.00 0.00 J $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/95 12/97 3/00 6/02 9/04 12/06 3/09 9/12 • Intermediate Core 1.88 (39) 5.90 (45) 5.90 (45) 4.99 (31) 6.00 (44) 7.48 (43) 6.63 (41) Intermediate Core O Barclays Intermediate Aggregate Index 1.36 (86) 4.31 (86) 4.31 (86) 4.27 (66) 5.34 (78) 6.41 (88) 5.96 (78) Barclays Intermediate Aggregate Index Median 1.74 5.63 5.63 4.57 5.83 7.34 6.47 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Intermediate Core 1.73 (17) 1.06 (58) 1.11 (46) 2.56 (22) 2.18 (17) 0.61 (47) Barclays Intermediate Aggregate Index 1.32 (70) 0.66 (80) 0.91 (77) 2.30 (32) 2.17 (18) 0.48 (69) IM U.S.Intermediate Duration(SA+CF)Median 1.46 1.17 1.08 2.01 2.00 0.60 THE 69 ` BOGDAHN `--" GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 8.7 0.00 Over c :TS 8.0 - Performance • t • rr w 25.00 7.0 �• ( Q U . • • u 8 Q g e 0o 00o 00 0 00 .5 6.0 •X 50.00 v O 9 Q Q 0 0 0 E a E 50 Q p O w . • E 75.00 w O Q O 0 Under - 4.0 - Performance re T I I I I I I 100.00 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 Barclays Intermediate Aggregate Index(%) 4) Over Performance 0 Under Performance Total 5-25 25-Median Median-75 75-95 Period Count Count Count Count Earliest Date X Latest Date • Intermediate Core 20 0 (0%) 16(80%) 4(20%) 0(0%) 0 Barclays Intermediate Aggregate Index 20 0 (0%) 4(20%) 14(70%) 2(10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 6.73 - 6.00 • 6.60 • E 5.70 E 6.30 > > w w re re 5.40 0 6.00 0 l I I I I I 1.90 1.95 2.00 2.05 2.10 2.15 2.20 2.25 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 6.00 2.27 • Intermediate Core 6.63 2.70 o Barclays Intermediate Aggregate Index 5.34 1.94 0 Barclays Intermediate Aggregate Index 5.96 2.48 Median 5.83 2.20 Median 6.47 3.32 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.50 109.75 98.81 0.43 1.25 2.50 1.04 1.15 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 2.37 1.00 1.01 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.94 107.06 91.62 0.51 0.68 1.88 1.02 1.57 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.24 THE ( BOGDAHN 7o GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv (TGBAX) 20 Quarters Rolling Periods As of September 30,2012 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 25.0 1 a N I 50.0 d a NNd 75.0 100.0 3/02 9/02 3/03 9/03 3/04 9/04 3/05 9/05 3/06 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Templeton GI Bond;Adv(TGBAX) 43 39 (91%) 1 (2%) 3 (7%) 0 (0%) Citigroup World Government Bond 43 18 (42%) 24 (56%) 1 (2%) 0 (0%) Manager composite returns used for chart population. THE [l BOGDAHN \`� GROUP. 71 Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending September 30,2012 Relative Performance 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 � I 00 . I, I II11 I . II II i .iii1i1i11• . 'i1I 111 1 1 -2.0 -3.0 -4.0 -5.0 -6.0– -7.0– -8.0– 2/97 11/97 8/98 5/99 2/00 11/00 8/01 5/02 2/03 11/03 8/04 5/05 2/06 11/06 8/07 5/08 2/09 11/09 8/10 5/11 2/12 9/12 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. THE [� BOGDAHN 72 \` ' GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30,2012 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2011 To September 30,2012 No data found. Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 17.37 $410.50 $390.00 16.00 $367.61 $360.00 14.00 • • $330.00 12.00 • $300.00 10.00 $270.00 0.00 • $253.73 • $240.00 w 8.00 re O $210.00 6.00 • • $180.00 4.00 0 0 () $150.00 2.00 $120.00 - 0.00 J $90.00 $60.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 5/97 6/99 9/01 12/03 3/06 6/08 9/10 9/12 • Templeton GI Bond;Adv(TGBAX) 5.40 (12) 13.25 (10) 13.25 (10) 5.29 (27) 8.30 (23) 11.36 (9) 9.75 (1) Templeton GI Bond;Adv(TGBAX) O Citigroup World Government Bond 2.99 (75) 3.28 (96) 3.28 (96) 3.94 (63) 4.29 (84) 6.59 (68) 6.45 (29) Citigroup World Government Bond Median 3.45 7.50 7.50 4.37 5.59 7.62 5.61 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2012 Mar-2012 Dec-2011 Sep-2011 Jun-2011 Mar-2011 Templeton GI Bond;Adv(TGBAX) -0.99 (95) 7.20 (4) 1.23 (42) -7.73 (97) 2.48 (45) 2.15 (25) Citigroup World Government Bond 0.92 (37) -0.51 (100) -0.13 (87) 2.38 (15) 3.33 (10) 0.65 (78) IM Global Fixed Income(MF)Median 0.58 2.50 0.88 -1.49 2.23 1.54 THE ( BOGDAHN 73 ``, GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30,2012 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years -15.1 y 0.00 • • m. . . e e • '8 14.0 Over • • c m Performance • m 0 0 0 0 12.0 - w 25.00 > e O O • 10.0 - O O •• 50.00 a 0 yr • w O• 8.0 A a m 75.00 3 6.0 - w 0 O O ill c re •• 4.0 Under 1 100.00 n Performance 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 9/12 I I I I I I I I I I I I I 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 Citigroup World Government Bond(%) Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count • Over Performance + Earliest Date X Latest Date • Templeton GI Bond;Adv(TGBAX) 20 17(85%) 3(15%) 0(0%) 0(0%) 0 Citigroup World Government Bond 20 11 (55%) 2(10%) 2(10%) 5(25%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 8.40 • 9.80 - • \" ` 7.00 "' 8.40 E c > > w 5.60 w 7.00 0 re re 4.20 0 5.60 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00 7.20 7.50 7.80 8.10 8.40 8.70 9.00 9.30 9.60 9.90 10.16 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Templeton GI Bond;Adv(TGBAX) 8.30 9.65 • Templeton GI Bond;Adv(TGBAX) 9.75 9.72 O Citigroup World Government Bond 4.29 6.46 0 Citigroup World Government Bond 6.45 7.71 Median 5.59 5.82 Median 5.61 7.37 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 9.50 122.59 74.58 6.28 0.43 0.87 0.53 6.56 Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A 0.67 1.00 4.50 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 9.20 105.83 66.82 6.16 0.35 0.94 0.58 6.09 Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A 0.77 1.00 4.71 THE LBOGDAHN � GROUP,74 ` Page Intentionally Left Blank 75 Benchmark Historical Hybrid Compositions Total Fund As of September 30,2012 Total Fund Policy Total Equity Policy Allocation Mandate Weight(%) Allocation Mandate Weight(%) Jan-1976 Jan-1970 S&P 500 Index 65.00 S&P 500 Index 90.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 MSCI EAFE Index 5.00 Oct-2003 Oct-2003 S&P 500 Index 85.00 S&P 500 Index 60.00 MSCI EAFE Index 15.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 Sep-2006 S&P 500 Index 100.00 Sep-2006 S&P 500 Index 60.00 Oct-2009 Barclays Intermediate Aggregate Index 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 Oct-2009 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 25.00 MSCI EAFE Index 15.00 Total Domestic Equity Policy Barclays U.S.Treasury: U.S.TIPS Index 5.00 Allocation Mandate Weight(%) NCREIF Property Index 5.00 Jan-1926 Oct-2010 S&P 500 Index 100.00 Russell 3000 Index 50.00 Oct-2009 Barclays Intermediate Aggregate Index 20.00 Russell 3000 Index 100.00 MSCI EAFE Index 15.00 Barclays U.S.Treasury: U.S.TIPS Index 5.00 NCREIF Fund Index-Open End Diversified Core(EW) 10.00 Total Fixed Income Policy Allocation Mandate Weight(%) Nov-2000 Barclays Aggregate Index 100.00 Sep-2006 Barclays Intermediate Aggregate Index 100.00 TH h BOGDAHN 76 GROUP. Disclosures Total Fund As of September 30,2012 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. THE 4.- BOGDAHN 77 GROUP. Report Statistics Definitions and Descriptions Return -Compounded rate of return for the period. 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. 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. 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. 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. 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. 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. 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. 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. 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. Excess Return -Arithmetic difference between the manager's performance and the risk-free return over a specified time period. Active Return -Arithmetic difference between the manager's performance and the designated benchmark 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. 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. 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 Calculations based on monthly periodicity. THt BOGDAHN GROUP 78 City of Winter Springs General Employee Retirement System Compliance Checklist as of September 30, 2012 Total Fund Compliance: Yes No N/A 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: Yes No N/A 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. ✓ 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. ✓ 6. Total foreign equity was less than 25%of the total plan assets at cost. ✓ Fixed Income Compliance: Yes No N/A 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. All fixed income investments had a minimum rating of investment grade or higher.* *Less than 1.0% rated below investment grade as reported by the manager. Manager Compliance: Lateef Dalton RBC Global Gaillard TIPS Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three year period. ✓ 1 1 1 1 2. Manager outperformed the index over the trailing five year period. ✓ 1 1 1 1 3. Manager ranked within the top 40th percentile over trailing three year period. 4. Manager ranked within the top 40th percentile over trailing five year period. ✓ 1 1 1 1 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ 1 1 1 1 6. Three year down-market capture ratio less than the index. ✓ 1 1 1 1 79 City of Winter Springs General Employee Retirement System Compliance Checklist as of September 30, 2012 Manager Compliance: American R Intercon. RE Templeton Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three year period. ✓ 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over trailing three year period. ✓ 4. Manager ranked within the top 40th percentile over 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. 80 ZOZ£S u!suoasiM `aa1nemIJIAI B1ZSL stxa,l, `st11 u 0081 31111S `any utsuoasiM _a OSZ OSZ 31111S `1f2M)11Ed stIIgG OLLS1 aaNn1rnmAT sIiivQ Z£6L•O1Z•998 118Z£ vpt-10l3 `op"IJo 009 alinS 'Pro 2I Puei3u1A 1061 opuii10 suors»ap dityonpf porn .gu!Afrldiuts dflOJ9 NHYUDOH rnsio IH,I, 1 £ 1 b17 otq `aauapuadapul £0£ altnS `II aaenbS ap1s)I0021 SSS09 sIoui!1i `a1t!AUOJI M peon apis3Iaou ££ 19 00Z 02! 'S `p.8o2I plaiJUT/kl OZ£17 puriaAaiW o � � atu3