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2013 08 13 Regular 602 2nd Quarter Performance Report
Winter Springs General Employees General Plan and Trust Investment Performance Review 2nd Quarter 2013 limiek THE BOGDAHN GROUP® W W W.B O G D A H N G RO U P.C O M sinrplifpirrg i'rrur invesbuent and Jirlucim� rlecisiass The Market Environment Plan Investment Performance Quarter Ended: June 2013 Portfolio Attribution (Reference pages 20-23 of The Bogdahn Group June 2013 Report) • "Fed speak"was the dominant force impacting market results during the quarter,as talk of potential tapering in their$85 billion a month of Agency MBS and U.S.Treasury asset purchases put a damper to what was otherwise strong first half sentiment. While equities corrected 6%on the Fed statement,bond markets experienced heavy selling with the 10 year U.S.Treasury yield reaching a high of 2.66%,potentially settling into a new and higher rate trading range. Unusual and notable,was the performance of spread sectors within the fixed income market which experienced the greatest selling pressure underperforming Treasuries. Perhaps due to mass participant unwinding of the leveraged carry trade,yield advantaged securities did not provide the downside protection normally afforded in a rising rate environments. This resulted in poor returns across the investment grade spectrum. Downward revisions to GDP forecasts,now in the high 1%to 2%range,coupled with concerns out of China,and commodity price declines continued to impact investor sentiment. The U.S.economy,despite modest expectations,continues to be perceived as the leader in the global economic cycle. U.S.large company corporations continue to report record profitability levels and positions of sound financial strength. Within the U.S.equity market,the"defensive"sectors of Telecom Services,Utilities and Consumer Staples ranked first,second and third in the return hierarchy within the S&P 500 in April.In May,when investors moved towards a pro-cyclical orientation, those sectors ranked tenth,eleventh and ninth overall.However,when the market got spooked in June following Bernanke's FOMC comments,those sectors reclaimed their lofty positions from April,ranking first,second,and fourth in June. The total return for the S&P 500 was 2.9%for the quarter. • Plan assets earned($376,263 net)from investments for the second quarter 2013,of which$201,540 came from interest income and$174,723 from market appreciation. • Plan earnings fiscal year to date are$2,892,480 which equates to a 10.17%net return vs.the benchmark return of 9.09%. • This places the Plan in the top 3rd percentile f.y.t.d.,top 17th percentile for 3 years,and top 26th percentile for 5 years in the public fund peer group universe. • RBC continued to outperform during the quarter and has added great value in all time periods. • Galliard Core Fixed Income and TIPS were both slightly behind their benchmarks with TIPS being the worst performing strategy in the portfolio. • Investment diversification to Real Estate continued to influence results positively. Real Estate had a strong return relative to domestic fixed income. Intercontinental faired better than American Realty;however,American Realty had strong absolute performance. Global bonds had a slight pull back during the quarter;however since inception return has been very beneficial to the plan. What helped? • Real estate,domestic equities and international equities were the primary drivers of return for the quarter. • The program continues to receive a performance boost from the manager allocations to Real Estate which continues to deliver strong returns. • The RBC International equity portfolio and the Templeton Global Bond portfolio continue to be the Plan's best active managers relative to benchmarks and peer groups. What hurt? • Diversification within fixed income hurt the portfolio this quarter despite longer-term benefits. • TIPS were hit hardest with the sell off in fixed income markets during the quarter. Recommendations/Actions: • The actively managed domestic equity portfolio was transitioned to a broad market index approach during January as directed by the Advisory Board. • There are no change/addition recommendations at this time. THE 1 l( BOGDAHN \`� GROUP The Market Environment Major Market Index Performance As of June 30,2013 • Dickens'classic A Tale of Two Cities starts off with the proclamation,"It was the best of times, it was the worst of times..." This is an appropriate Quarter Performance description of 2013's second quarter. In the first half of the period,the U.S. MSCI ACwxUS -2.9% �. equity markets continued the strong run posted in the first quarter, which MSCI EAFE -0.7% I saw double digit returns across many U.S. indices. Equity markets were up MSCI Emerg Mkts -8.0%1 3-4%from the beginning of April through late May.However,this reversed in June as the S&P 500 declined 1.1%off its high. S&P 500 2.9% Russell 3000 I 2.7% • The quarter started with a surprising jobs report in April(+165,000 new non Russell 1000 I 2.7% farm payroll jobs, which was above expectations), and in May the markets Russell MidCap 12.2% were lifted by a strong rise in the Chicago Purchasing Managers' Index, Russell 2000 131% which was also unforeseen by market participants. This momentum was - squashed when Fed Chairman Ben Bernanke at the May Federal Open Barclays US Agg -2.3% - Market Committee (FOMC) meeting suggested the Fed might begin Barclays US Tsy -1.9% I "tapering"of quantitative easing (QE). These comments also foreshadowed Barclays US TIPS -71% I a potential culmination in 2014 of the bond purchasing program that has Barclays MBS 2.0% dominated market behavior for much of the past few years. Barclays Corp IG 3.3% 1 • International stocks lagged during the second quarter as evidenced by the - MSCI EAFE Index's return of-0.7%. Emerging stocks fared even worse with 3-Month T-Bill 0.0% the MSCI Emerging Markets Index down 8.0%.The performance gap for the -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% year-to-date period between developed international and emerging equities 1-Year Performance is the widest it has been since the 1997-98 time period which began with the infamous"Asian Contagion." MSCI ACVVxUS 4.1 MSCI EAFE 19.1% • The U.S. bond market, as represented by the Barclays Aggregate Bond MSCI Emerg Mkts 3.2% Index, fell 2.3% in the second quarter of 2013. The 2.3% decline was the largest quarterly drop since the second quarter of 2004.The dramatic losses S&P 500 20.6% were broad-based as all major sectors moved sharply lower. Investment Russell 3000 1 21.5% grade credit suffered the largest decline with a decrease of 3.3%. The U.S. Russell 1000 _ 1 21.2% Treasury and MBS sectors each returned 1.9%. The poor second quarter Russell MidCap I 25.4% performance pushed the year-to-date and trailing one-year returns on the Russell 2000 124.2% Barclays Aggregate Index into negative territory. Barclays US Agg -0.7% I Barclays US Tsy -1.5% E Barclays US TIPS -4.8% I Barclays MBS -1.1% C Barclays Corp IG 1.4% 3-Month T-Bill 1 0.1% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Source:Investment Metrics 2 (� , BOGDAHN Nair GROUP. The Market Environment Domestic Equity Style Index Performance As of June 30,2013 • Within the U.S. equity market, all size groupings produced positive performance. Small caps, as represented by the Russell 2000 Index, were Quarter Performance-Russell Style Series ahead of their large cap peers. For the third consecutive quarter,small caps 3000 Value - = 13.1% outperformed large caps in aggregate. The return for the Russell 2000 3000 Index I 21% (+3.1%)outpaced that of the Russell 1000(+2.7%)by 40 basis points(bps). 3000 Growth 2.2% Equities, which were up as much as 4% earlier in the quarter, were driven lower as a result of Fed Chairman Bernanke's influential comments. 1000 Value 3.2% • Although the revision to the first quarter's GDP was disappointing at 1.8%vs. 1000 Index 2.7% the original report of 2.4%,the main cause of the change was spending cuts 1000 Growth 2.1% by the federal government due to the sequester.The market gains during the period were largely driven by the consumer sector. Housing posted MidCap Value 7% impressive gains with building permits running near the one million rate once again (up from just below 800,000 year over year), and home prices are MidCap Index 2.2% showed strong signs of recovery in more markets. Retail sales also MidCap Growth 2.9% improved. 2000 Value 2.5% • Price-to-earnings(PE)multiples rose to their highest levels in three years.As 2000 Index I 31% the economic recovery has broadened,consumer confidence readings have 2000 Growth 3.7% improved and are near six-year highs.Consumer confidence readings are an , important predictor of consumer spending, accounting for 70% of the U.S. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% economy, which influence and drive the markets. Corporate profits also 1-Year Performance-Russell Style Series continue to show a steady advance and are 20%above the peak of the last recovery cycle in 2006. 3000 Value 25.3% 3000 Index 21.5% • The quarter's forward S&P 500 PE ratio was 13.8X (on forward 12-month 3000 Growth 17.6% EPS estimates of$116.12), placing the S&P 500 above the 5-year average forward PE of 12.9X but below the 10-year forward PE of 14.1X, which 1000 Value 25.3% suggests equities were not overpriced but were not terribly attractive either. Forward estimates aligned with past 12-month earnings trends,which reflect 1000 Index 21.2% the record earnings levels for the S&P 500 that was driven by heightened 1000 Growth 17.1% profit margins but flat revenue growth. MidCap Value 27.7% • At 13.9X current PE, the large cap blend (Russell 1000 Index) segment MidCap Index 25.4% sported the most favorable valuation when compared to its 20 year historical - average of 16.2X(86.2%).Small cap value (Russell 2000 Value Index)was MidCap Growth 22.9% the"richest"of the traditional style box segments;at 107.2% (15.3X current _ vs. 14.2X historical). 2000 Value 24.8% 2000 Index 24.2% 2000 Growth 23.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Source:Investment Metrics THE 3 � BOGDAHN ~� GROUP. The Market Environment GICS Sector Performance&(Sector Weight) As of June 30,2013 • The major equity market "theme" this quarter was the rapid reversal in •Qua ter 01-Year performance for the traditional high dividend yielding sectors, such as Russell 1000 Materials and Energy (as well as Utilities in the small cap space). With Consumer Disc(13.0%) j 7.0% Bernanke's comments suggesting an end to QE may be near, the high 33.4% dividend yields exemplified by companies within these sectors became less Consumer Staples(9.8%) 0.7% I 18.1% compelling. With the ten-year bond rising 65 bps during the quarter, investors are already starting to act on this potential outcome. The strong Energy(9.9%) 07% 1 177% performance of Utilities within the Russell 1000 was somewhat of an Financials(17.3%) 5.8% anomaly and was driven by merger and acquisition activity within that , 32.3% segment, highlighted by Berkshire Hathaway's takeover of NV Energy Health Care(12.4%) 3.9% I (NVE)in late May. za.a% Industrials(10.9%) 2.2% I 24.1% • "Defensive" sectors, which include health care, consumer staples, utilities 1.2% Info Technology(17.2%) 7 7 and telecommunications services, are currently trading at a premium to "cyclical" sectors,which include information technology, industrials, energy, Materials(3.6%) consumer discretionary, and materials. Financials do not fall into either 22% 12.3% classification. After reaching peak valuations in late 2012, investors have Telecom Services(2.7%) 1.9% 1 12.9% migrated to higher cyclical exposure given favorable relative valuations.This trend is expected to continue as long as economic growth remains positive Utilities(3.4%) 2 3% 1 8.6% and steady. Currently, defensive sectors trade at 1.12X that of cyclical -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% sectors on a next 12-month PE basis.This is down from a high of 1.25X in late 2012. Russell 2000 •Quarter 1711-Year • With sector performance over the past few years being largely a byproduct Consumer Disc(14.7%) I 10.1% of the impact of macro factors(debt ceiling, U.S.Treasury downgrade, Euro - I I 37.1% issues,etc.)and the resulting flight to quality(dividend payers and large blue Consumer Staples(3.8%) s.1% 9 9 q Y( p Y 9 1 23.6% chip companies), correlations between stocks were driven to all time highs. -3.0% This resulted in an investment manager's stock selection having less of an Energy(5.7%) I 15.60/ impact on relative performance. This has changed of late, as correlations Financials(22.9%) I 0 2% have fallen from a high of approximately 0.65 in 2011 to 0.34 today.This is - 1 23.1% still slightly higher than the historical average of 0.26, giving managers Health Care(12.6%) 15.7% optimism that stock selection(and,as a result,sector returns)will be a result 17.4% of strong company fundamentals and not macro influences. Industrials(14.9%) 0.8% 29.9% Info Technology(16.6%) 6.1% 1 22.9% Materials(4.8%) -7.0% I 21.1%-Il Telecom Services(0.7%) 8.9% I 19.1% Utilities(3.2%) -0.1% 1 13.8% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Source:Morningstar Drrect THE 4 ( , BOGDAHN ` ~-"" GROUP. The Market Environment Top 10 Index Weights&Quarterly Performance for the Russell 1000&2000 As of June 30,2013 Top 10 Weighted Stocks Weight 1-Qtr M� IIIIII 111111 Return Exxon Mobil Corporation 2.59% 1.0% 8.4% Energy Pharmacyclics,Inc. 0.33% -1.2% 45.5% Health Care Apple Inc 2.27% -9.8% -30.6% Information Technology Ocwen Financial Corporation 0.32% 8.7% 119.5% Financials Microsoft Corporation 1.60% 21.6% 16.4% Information Technology Starwood Property Trust,Inc. 0.30% -9.1% 25.4% Financials General Electric Co 1.51% 0.3% 14.1% Industrials Genesee&Wyoming,Inc. 0.27% -8.9% 60.6% Industrials Johnson&Johnson 1.45% 6.1% 31.4% Health Care 3D Systems Corporation 0.27% 36.2% 92.9% Information Technology Chevron Corp 1.43% 0.4% 15.9% Energy Alaska Air Group,Inc. 0.27% -18.7% 44.8% Industrials Google, Inc.Class A 1.40% 10.9% 51.8% Information Technology Two Harbors Investment Corp 0.27% -16.3% 21.5% Financials Procter&Gamble Co 1.30% 0.7% 29.9% Consumer Staples CoStar Group,Inc. 0.26% 17.9% 59.0% Information Technology IBM 1.28% -10.0% -0.6% Information Technology Dril-Quip,Inc. 0.26% 3.6% 37.7% Energy Wells Fargo&Co 1.24% 12.4% 26.9% Financials Gulfport Energy Corporation 0.26% 2.7% 128.3% Energy e Stoc Quarter) Tesla Motors, Inc. 0.05% 183.3% 243.1% Consumer Discretionary Clovis Oncology Inc 0.07% 133.6% 208.9% Health Care ITT Educational Services,Inc. 0.00% 77.1% -59.8% Consumer Discretionary Overstock.com, Inc. 0.02% 128.9% 308.1% Consumer Discretionary T-Mobile US Inc 0.03% 69.6% 205.6% Telecommunication Services Immunomedics,Inc. 0.03% 125.7% 52.8% Health Care Advanced Micro Devices Inc 0.02% 60.0% -28.8% Information Technology Inteliquent 0.01% 123.6% -8.6% Telecommunication Services Clearwire Corp Class A 0.01% 54.2% 346.0% Telecommunication Services Restoration Hardware Holdings Inc 0.03% 114.3% N/A Consumer Discretionary NII Holdings Inc 0.01% 54.0% -34.9% Telecommunication Services National Research Corporation 0.00% 111.6% 144.0% Health Care GameStop Corp Class A 0.03% 51.5% 138.8% Consumer Discretionary Vanda Pharmaceuticals, Inc. 0.02% 106.1% 83.6% Health Care Warner Chilcott PLC Class A 0.02% 48.9% 49.0% Health Care SolarCity Corp 0.04% 99.9% N/A Industrials Vertex Pharmaceuticals 0.10% 45.6% 43.2% Health Care Nexstar Broadcasting Group Inc 0.03% 97.8% 432.5% Consumer Discretionary Micron Technology,Inc. 0.09% 43.7% 127.1% Information Technology Arkansas Best Corporation 0.04% 97.0% 84.3% Industrials ' Bottom 10 Performing Stocks(by Quarter) , . Bottom 10 Performing Stocks(by Quarter) 1-Qtr 1-Year • M 1-Qtr 1-Year Russell 1000 Weight Return Return Sector Russell 2000 Weight Return Return Sector Walter Energy Inc 0.00% -63.3% -76.0% Materials Exide Technologies, Inc. 0.00% -95.3% -96.2% Consumer Discretionary Allied Nevada Gold Corp 0.00% -60.6% -77.2% Materials Orchard Supply Hardware 0.00% -92.4% -98.2% Consumer Discretionary Royal Gold,Inc. 0.02% -40.6% -45.8% Materials Central European Distribution Corp 0.00% -78.6% -97.7% Consumer Staples Alpha Natural Resources Inc 0.01% -36.2% -39.8% Energy Golden Star Resources, Ltd. 0.01% -73.8% -63.8% Materials SolarVVinds,Inc. 0.01% -34.3% -10.9% Information Technology Revett Minerals Inc. 0.00% -71.6% -80.3% Materials Peabody Energy Corporation 0.02% -30.5% -39.4% Energy Infinity Pharmaceuticals,Inc. 0.04% -66.6% 19.4% Health Care PBF Energy Inc 0.00% -29.7% N/A Energy AVEO Pharmaceuticals,Inc. 0.01% -66.0% -79.4% Health Care Newmont Mining Corporation 0.09% -27.8% -36.0% Materials ATP Oil&Gas Corp 0.00% -60.0% -97.9% Energy American Capital Agency Corp. 0.06% -26.5% -19.6% Financials Vista Gold Corporation 0.00% -55.1% -66.7% Materials Fortinet,Inc. 0.01% -26.1% -24.6% Information Technology Rigel Pharmaceuticals, Inc. 0.02% -50.9% -64.1% Health Care Source:Morningstar Drrect 5 ‘17-'�� BOGDAHN GROUP. The Market Environment International and Regional Market Index Performance(Country Count) As of June 30,2013 • International equity markets ended the second quarter in negative territory, •USD ❑Local Currency with emerging equity markets continuing their"worst performer"status.April Quarter Performance saw very strong international equity returns, while May and June were -2.9% AC world x US(44) z 9 progressively more negative. Trailing one-year international equity returns remain in positive territory,with the exception of Latin America. -1.4% WORLD x US(23) 1.0% • While U.S. Fed Chairman Bernanke's comments regarding possible QE EAFE(22) -0.7/0 "tapering" may have had some negative effects on emerging equities, the 1.5% more obvious culprit was news coming out of Turkey and China.Widespread Europe(16) -0.1% social unrest in Turkey in early June caused the local stock market to -0.4% collapse.The country had been a recent investor darling after upgrades from Pacific(5) -1.7% = 5.0% Moody's and Fitch from junk status to the lowest rung of investment-grade. - Investor fears of a continued Chinese economic slowdown were Emerging Mkt(21) -8.0% compounded by rumors of an impending banking crisis in the country. The -a.3% - People's Bank of China signaled its concern in June by engineering a credit EM Europe(5) -8.7 squeeze to discourage loan growth. -4.8% EM Asia(8) 52/ • The Japanese Yen continued its depreciation trend relative to the U.S.dollar 3.1% (USD) during the quarter. Local equity returns for the country were 10.2% EM Latin Amer(5) 15.5% versus a return of 4.3% in USD. In general, Asian and emerging country , currencies also depreciated versus the USD, while developed European -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% currencies moderately appreciated during the period. 1-Year Performance I ■USD ❑Local Currency • Australia and New Zealand were the worst-performing developed equity AC world x US(44) 14.1 - 14.1% markets during the quarter (-13.9% and -10.4%, respectively), while Peru I was by far the worst emerging equity market at-27.5%.Several developed WORLD x us(23) 17 67 23.6% equity markets ended the quarter in positive territory, including several - European countries and Japan.Only Hungary, Malaysia,and Taiwan turned EAFE(22) 19.1% in positive performance under the emerging equity category. - 25.5% Europe(16) 19.6% 19.5% • Returns across sectors again varied widely during the quarter and displayed no trend in regards to defensive versus cyclical sectors. Consumer Pacific(5) 1a.s% 38.5% discretionary,telecommunications services, and utilities stocks,on average, - were the best performers. Energy and materials stocks struggled and ended Emerging Mkt(21) 3.z 6.5% the quarter down significantly. I EM Europe(5) 3.9% 5.6% EM Asia(8) 7.9/o -6.8% 8.7% EM Latin Amer(5) -1.9% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Source:MSCI Global Index Monitor, Returns are gross THE 6 co, BOGDAHN ~� GROUP. The Market Environment U.S. Dollar International Index Attribution&Country Detail As of June 30,2013 Sector Weight Quarter Return 1-Year Return - Consumer Discretionary 11.7% 5.8% 30.9% Japan 22.6% 16.0% 4.4% 22.4% Consumer Staples 11.8% 4.4% 17.3% United Kingdom 21.7% 15.3% -2.2% 11.9% Energy 7.0% -3.0% 0.9% France 9.4% 6.7% 3.5% 24.0% Switzerland 9.2% 6.5% 0.0% 30.1% Financials 25.0% -1.0% 29.3% Germany 8.7% 6.1% 3.4% 28.2% Health Care 10.5% 0.9% 26.1% Australia 8.0% 5.7% -13.9% 11.0% Industrials 12.5% -1.4% 19.5% Sweden 3.1% 2.2% -5.3% 20.9% Hong Kong 3.0% 2.1% -4.6% 17.4% Information Technology 4.6% 1.3% 18.8% Spain 2.8% 2.0% -0.4% 15.5% Materials 8.0% -8.5% 2.0% Netherlands 2.6% 1.9% 3.1% 26.3% Telecommunication Services 5.2% 5.3% 12.1% Italy 2.0% 1.4% 1.4% 7.7% Singapore 1.7% 1.2% -6.3% 10.1% Utilities 3.8% 4.1% 7.2% Belgium 1.1% 0.8% -3.7% 22.7% Denmark 1.1% 0.8% -3.8% 15.5% Norway 0.8% 0.6% -5.0% 9.7% u Finland 0.8% 0.6% 1.4% 30.8% Consumer Discretionary 10.5% 4.2% 26.5% Israel 0.5% 0.4% -4.2% 5.1% Ireland 0.3% 0.2% -3.6% 10.4% Consumer Staples 10.7% -4.1% 16.6% Austria 0.3% 0.2% -2.7% 18.6% Energy 9.3% -6.4% -1.0% Portugal 0.2% 0.1% 0.4% 25.1% Financials 26.4% -3.3% 22.4% New Zealand 0.1% 0.1% -10.4% 20.5% Greece 0.0% 0.0% -9.0% 33.3% Health Care 8.0% 1.0% 26.3% otal EAFE Countri- 70.7% Industrials 10.7% -2.6% 16.6% Canada 7.3% -7.3% 4.6% otal Developed Countries 78.0% -1.- . Information Technology 6.6% -1.4% 16.4% China 4.0% -6.5% 5.5% Materials 8.6% -12.8% -7.6% Korea 3.2% -10.0% 0.4% Telecommunication Services 5.6% 2.9% 9.4% Taiwan 2.6% 1.6% 15.1% Brazil 2.5% -17.2% -10.9% Utilities 3.5% 0.3% 3.5% South Africa 1.6% -7.3% -4.3% Total 100.0% L M. India 1.5% -5.6% 6.7% Russia 1.3% -8.3% -0.4% Mexico 1.2% -11.2% 6.4% Consumer Discretionary 8.3% -3.1% 8.9% Malaysia 0.9% 6.2% 15.0% Indonesia 0.7% -6.5% 15.3% Consumer Staples 9.4% -3.9% 13.0% Thailand 0.6% -8.5% 18.7% Energy 11.4% -11.8% -6.9% Turkey 0.4% -15.2% 17.5% Financials 27.5% -9.6% 8.8% Chile 0.4% -14.5% -10.1% Poland 0.3% -4.4% 7.0% Health Care 1.5% -0.5% 19.0% Colombia 0.3% -13.3% -6.6% Industrials 6.3% -9.1% -0.8% Philippines 0.2% -8.6% 26.7% Information Technology 14.7% -3.9% 13.7% Peru 0.1% -27.5% -21.8% Czech Republic 0.1% -6.5% -14.2% Materials 9.5% -17.1% -16.5% Hungary 0.1% 13.2% 14.0% Telecommunication Services 7.9% 0.7% 4.0% Egypt 0.1% -9.7% -11.9% Utilities 3.4% -10.1% -7.3% Morocco 0.0% -2.8% -7.7% Total Emerging Countries 22.0% -8.0% 3.2% Total 100.0% -8.0% 3.2% Total ACWIxUS Countries 100.0% -2.9% 14.1% Source:MSCI Global Index Monitor, Returns are gross THE 7 r , BOGDAHN ♦~� GROUP. The Market Environment Domestic Bond Sector&Broad/Global Bond Market Performance As of June 30,2013 • Fixed income markets experienced broad declines in the second quarter of 2013. The sell-off was in response to comments from Fed Chairman Ben Quarter Performance Bernanke that fueled speculation the FOMC will reduce or"taper" its bond AAA -1.9h purchases later in the year. The declines in the market were broad-based AA -28% I - and covered all sectors and credit levels. As a result, global bonds, as - measured by the Barclays Multiverse Index, fell 2.7%. Domestically, the A 3.3% Barclays Aggregate Bond Index fell 2.3%. Baa -19% High Yield -1.4% • Returns across investment grade sectors ranged from a 7.1%decline in U.S. Treasury -1.9% TIPS to a more modest decline of 1.9% in the Treasury and securitized - (MBS,ABS,CMBS)areas of the market. Mortgage z.o% Corporate IG -3.3% • Within investment grade corporate bonds, performance across industry TIPS -7.1% groups was strongest within financials as they outperformed industrials and - utilities by 70 and 121 bps respectively. - Aggregate -2.3% • The trend of low quality bonds outperforming high quality reversed as losses Intermediate Agg -1.8% - increased down the investment grade credit spectrum. The only exception Global Agg x US -3.1% to the trend change was high yield, which exceeded all investment grade Multiverse -2.7% credit groups. . -8.0% -6.0% -4.0% -2.0% 0.0% • Interest rates on longer-dated bonds rose dramatically during the period 1-Year Performance while rate increases in the shorter maturities were more muted. Along the Treasury curve, the 2- and 10-year Treasuries rose 11 and 65 bps AAA -1.3% respectively. As a result, the shorter-duration Barclays Intermediate Bond AA -0.6% E Index outperformed the longer-duration Aggregate Index by 50 bps. A I 1.0% • Over the past twelve months, corporate bonds have easily outpaced Baa 2.0% 9.5% Treasury and mortgage securities, generating a positive return versus High Yield negative returns for the other sectors. Within corporate bonds, the strong Treasury -1.6% credit rally in 2012 resulted in high yield being the big"winner"as the asset Mortgage class bested investment grade credit by 810 bps(9.5%vs. 1.4%). - Corporate IG I 1.4% • International bonds,as measured by the Barclays Global Aggregate ex U.S., TIPS -4.8%- continued to sell off,falling 3.1%during the second quarter. The 3.1% drop marked the third consecutive quarter of negative returns for the benchmark. E On a trailing one-year basis, international bonds lag their domestic Aggregate 0.7% counterparts by 260 bps(-3.4%vs.-0.7%). Intermediate Agg -0.1% Global Agg x US -3.4% Multiverse -1.7% I -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source:Barclays Capital Live imi THE 8 ( ) BOGDAHN Nair GROUP. The Market Environment Market Rate&Yield Curve Comparison As of June 30,2013 • During the second quarter of 2013, volatility in domestic bonds increased sharply resulting in a 2.3% decline in the Barclays Aggregate Index (the 1-Year Trailing Market Rates worst quarterly return since 2004). Despite somewhat disappointing 3.50 economic news,the quarter began with the market rising 1.0%in April. The Fed Funds Rate TED Spread 3-Month Libor 3.00 , BAA OAS , 10yr Treasury , 10yr TIPS key driver of returns was a continuation of lower quality, longer-dated bonds leading the market.In May,mixed signals from Fed Chairman Ben Bernanke 2.50 `` focused attention on a reduction ("tapering") of the central bank's asset purchases. As a result, bond markets reversed course resulting in a sharp 200 rise in interest rates and a widening in spreads. On June 19, Chairman Bernanke released an optimistic statement on the U.S. economy which 1.50 Rillril"."1"..11611116.amidri111111111111114 16111 served to further heighten concern that the Fed would taper their asset purchases sooner than expected. Bernanke's comments served to increase 1.00 the pressure on bond prices leading to a 1.6%decline during the month of May. 0.50 • Though rates rose sharply during the second quarter,the shift was uneven o.00 across the yield curve with short rates virtually unchanged and intermediate and long-dated bonds moving the most. The absolute change in yield levels -0.50 is below-: -1.00 2-Year U.S.Treasury +11 bps Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 5-Year U.S.Treasury +64 bps Treasury Yield Curve 7-Year U.S.Treasury +72 bps 5.00 - 10-Year U.S.Treasury +65 bps 4.50 ----^I 1-2/31/2D1A---,-12/30/21311 T2/31/2012--- •.613012-013 -----■ For several quarters, investors have faced a market characterized by abnormally low yields and little income to cushion any measurable price 4.00 decline. Those price declines, via higher rates, arrived in the second 3.50 --- quarter. The result was a decline in the Barclays Aggregate Index not seen in almost ten years. 3.00 • Even though markets now offer yields higher than those of the past several 2.50 quarters, the overall level of interest rate risk continues to be much higher than the potential return. Going forward, we believe volatility will likely 2.00 persist.As painful as the second quarter was for many market participants, 1.50 1 flat to negative returns could persist over the near-term. 1.00 0.50 ri 0.00 - i _-� 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) THE 9 ( , BOGDAHN Nair GROUP. Asset Allocation Summary Total Fund As of June 30,2013 Asset Allocation By Segment as of Asset Allocation By Segment as of March 31,2013:$29,692,832 June 30,2013:$30,237,076 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 15,409,934 51.9 • Domestic Equity 15,836,585 52.4 • International Equity 4,484,174 15.1 • International Equity 4,514,315 14.9 • Fixed Income 5,753,413 19.4 • Fixed Income 5,607,938 18.5 • Global Fixed Income 1,022,901 3.4 • Global Fixed Income 985,496 3.3 • Real Estate 2,540,876 8.6 • Real Estate 2,629,180 8.7 • Cash Equivalent 481,534 1.6 • Cash Equivalent 663,561 2.2 THE 10 (C , BOGDAHN ♦~� GROUP. Asset Allocation Summary Total Fund As of June 30,2013 Asset Allocation By Manager as of Asset Allocation By Manager as of March 31,2013:$29,692,832 June 30,2013:$30,237,076 Allocation Allocation Market Value Allocation Market Value Allocation •Vanguard Total Stock Market(VITSX) 15,409,934 51.9 •Vanguard Total Stock Market(VITSX) 15,836,585 52.4 • Galliard Core Fixed Income 4,528,336 15.3 • RBC Global(Voyageur) 4,514,315 14.9 • RBC Global(Voyageur) 4,484,174 15.1 • Galliard Core Fixed Income 4,440,244 14.7 • Intercontinental 1,801,039 6.1 • Intercontinental 1,875,574 6.2 • Galliard TIPS 1,247,759 4.2 • Galliard TIPS 1,175,454 3.9 • Templeton Global Bond Fund(TGBAX) 1,022,901 3.4 • Templeton Global Bond Fund(TGBAX) 985,496 3.3 •American Core Realty Fund 748,761 2.5 •American Core Realty Fund 762,601 2.5 Receipt&Disbursement 449,712 1.5 Receipt&Disbursement 646,590 2.1 • Galliard Cash 216 0.0 • Galliard Cash 216 0.0 THE 11 (C , BOGDAHN `~� GROUP. Page Intentionally Left Blank 12 Asset Allocation vs.Target Allocation Total Fund As of June 30,2013 Asset Allocation vs.Target Allocation Vanguard Total Stock Market- 2.4% RBC Global(Voyageur)- -0.1 Galliard Core Fixed Income- -0.3 Galliard TIPS- -1.1 Templeton Global Bond Fund(TGBAX)- -1.7 American Core Realty Fund- Intercontinental- 1.2% Receipt&Disbursement- 2.1% Galliard Cash- 0.0% I -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • Allocation Differences Market Value$ Allocation(%) Target(%) ili ■ Vanguard Total Stock Market 15,836,585 52.4 50.0 RBC Global(Voyageur) 4,514,315 14.9 15.0 Galliard Core Fixed Income 4,440,244 14.7 15.0 Galliard TIPS 1,175,454 3.9 5.0 Templeton Global Bond Fund(TGBAX) 985,496 3.3 5.0 American Core Realty Fund 762,601 2.5 5.0 Intercontinental 1,875,574 6.2 5.0 Receipt&Disbursement 646,590 2.1 0.0 Galliard Cash 216 0.0 0.0 Total Fund 30,237,076 100.0 100.0 THE 13 (C , BOGDAHN `'J GROUP. Asset Allocation History Total Fund As of June 30,2013 Historical Asset Allocation by Portfolio Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 ($) / ($) / ($) / ($) / ($) Total Equity 20,350,900 67.30 19,894,108 67.00 18,027,915 65.47 17,607,169 65.49 16,254,199 64.15 Total Domestic Equity 15,836,585 52.37 15,409,934 51.90 13,905,360 50.50 13,751,255 51.15 12,788,447 50.47 Dalton All Cap Value Equity - 0.00 - 0.00 6,677,361 24.25 6,615,050 24.60 6,178,716 24.39 Total International Equity 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 3,855,915 14.34 3,465,753 13.68 RBC Global(Voyageur) 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 3,855,915 14.34 3,465,753 13.68 Total Fixed Income 6,601,194 21.83 6,798,996 22.90 6,780,745 24.63 6,742,203 25.08 6,594,529 26.03 Total Domestic Fixed Income 5,615,698 18.57 5,776,095 19.45 5,762,425 20.93 5,723,119 21.29 5,616,667 22.17 Galliard Core Fixed Income 4,440,244 14.68 4,528,336 15.25 4,515,562 16.40 4,494,942 16.72 4,415,321 17.43 Galliard TIPS 1,175,454 3.89 1,247,759 4.20 1,246,863 4.53 1,228,177 4.57 1,201,345 4.74 Total Global Fixed Income 985,496 3.26 1,022,901 3.44 3.70 1,019,084 3.79 977,863 3.86 Templeton Global Bond Fund(TGBAX) 985,496 3.26 1,022,901 3.44 1,018,321 3.70 1,019,084 3.79 977,863 3.86 Total Real Estate 8.72 `549,800 _ 8.59 9.07 2,393,430 8.90 2,343,949 9.25 American Core Realty Fund 762,601 2.52 748,761 2.52 741,457 2.69 725,342 2.70 717,603 2.83 Intercontinental 1,875,574 6.20 1,801,039 6.07 1,755,878 6.38 1,668,088 6.20 1,626,346 6.42 Receipt&Disbursement 646,590 2.14 449,712 1.51 229,349 0.83 143,119 0.53 143,826 0.57 Gaillard Cash 216 0.00 216 0.00 216 0.00 216 0.00 216 0.00 Total Fund Portfolio 30,237,076 100.00 29,692,832 100.00 I 27,535,560 100.00 26,886,138 100.00 25,336,720 100.00 TSts 14 r BOGDAHN L'J GROUP. Asset Allocation History Total Fund As of June 30,2013 Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 60.0 c 0 i 50.0 U 0 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 12/12 3/13 6/13 • Domestic Equity • International Equity • Fixed Income • Global Fixed Income • Real Estate • Cash Equivalent T7tE 15 (C , BOGDAHN ♦~-.■ GROUP. Page Intentionally Left Blank 16 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of June 30,2013 70.0- 65.0- 60.0- 55.0- 50.0- 45.0- 40.0- 0 35.0- ? 0 is 30.0 c+ 0 a 25.0- 20.0- 15.0- 10.0- • 5.0- • 0.0- • ■ -5.0- US Equity Intl.Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash •Total Fund Portfolio 52.37 (23) 14.93 (51) 18.57 (86) 3.26 (82) 0.00 8.72 (25) 2.14 (31) 5th Percentile 61.29 26.74 48.22 11.95 25.97 11.69 6.98 1st Quartile 51.44 20.32 34.60 5.34 16.25 8.72 2.58 Median 44.26 15.01 28.56 4.79 9.33 5.42 1.28 3rd Quartile 32.30 12.27 22.56 4.03 3.43 4.50 0.41 95th Percentile 21.22 7.64 13.91 1.20 0.88 2.28 0.08 17 /CTHE A,BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30,2013 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec.1 Market Value 0410112013 Transfers Contributions Distributions Fees Expenses Income Deprec. 0 613 012 01 3 Total Equity 19,894,108 10,475 - - -10,475 -769 147,397 310,164 20,350,900 Total Domestic Equity 15,409,934 - - - - - 73,902 352,749 15,836,585 Lateef Asset Mgmt.Equity - - - - - - - - - Dalton All Cap Value Equity - - - - - - - - - Vanguard Total Stock Market(VITSX) 15,409,934 - - - - - 73,902 352,749 15,836,585 Total International Equity- 4,484,174 10,475 - - -10,475 -769 73,495 -42,584 4,514,315 RBC Global(Voyageur) 4,484,174 10,475 - - -10,475 -769 73,495 -42,584 4,514,315 Total Fixed Income 6,798,996 -9,802 - - -3,293 -152 12,936 -197,491 6,601,194 Total Domestic Fixed Income 5,776,095 - - - -3,293 -152 3,134 -160,086 5,615,698 Galliard Core Fixed Income 4,528,336 - - - - - - -88,092 4,440,244 Galliard TIPS 1,247,759 - - - -3,293 -152 3,134 -71,994 1,175,454 Total Global Fixed Income 1,022,901 -9,802 - - - - 9,802 -37,405 985,496 Templeton Global Bond Fund(TGBAX) 1,022,901 -9,802 - - - - 9,802 -37,405 985,496 Total Real Estate 2,549,800 -8,924 - - -5,945 - 41,194 62,050 2,638,175 American Core Realty Fund 748,761 -8,924 - - -2,103 - 8,995 15,872 762,601 Intercontinental 1,801,039 - - - -3,842 - 32,199 46,178 1,875,574 Receipt&Disbursement 449,712 8,251 629,132 -431,678 - -8,838 13 - 646,590 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 629,132 -431,678 -19,713 -9,760 201,540 174,723 30,237,076 THE 18 c.. BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2012 To June 30,2013 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec.1 Market Value 1010112012 Transfers Contributions Distributions Fees Expenses Income Deprec. 0 613 012 01 3 Total Equity 17,607,169 152,511 - - -89,563 -4,417 381,144 2,304,056 20,350,900 Total Domestic Equity 13,751,255 123,777 - - -60,828 -2,202 250,598 1,773,986 15,836,585 Lateef Asset Mgmt.Equity 7,136,205 -7,337,143 - - -35,905 -1,129 65,726 172,247 - Dalton All Cap Value Equity 6,615,050 -6,796,632 - - -24,923 -1,073 41,687 165,892 - Vanguard Total Stock Market(VITSX) - 14,257,553 - - - - 143,185 1,435,847 15,836,585 Total International Equity_ 3,855,915 28,734 - - -28,734 -2,215 130,546 530,070 4,514,315 RBC Global(Voyageur) 3,855,915 28,734 - - -28,734 -2,215 130,546 530,070 4,514,315 Total Fixed Income 6,742,203 -44,067 - - -9,841 -458 69,525 -156,168 6,601,194 Total Domestic Fixed Income 5,723,119 14,796 - - -9,841 -458 10,662 -122,580 5,615,698 Galliard Core Fixed Income 4,494,942 2,796 - - -2,796 - - -54,698 4,440,244 Galliard TIPS 1,228,177 12,000 - - -7,045 -458 10,662 -67,883 1,175,454 Total Global Fixed Income 1,019,084 -58,863 - - - - 58,863 -33,588 985,496 Templeton Global Bond Fund(TGBAX) 1,019,084 -58,863 - - - - 58,863 -33,588 985,496 Total Real Estate 2,393,430 -17,772 ' - -31,374 - 85,420 208,471 2,638,175 American Core Realty Fund 725,342 -17,772 - - -6,200 - 30,864 30,367 762,601 Intercontinental 1,668,088 - - - -25,174 - 54,556 178,104 1,875,574 Receipt&Disbursement 143,119 -90,673 1,898,980 -1,274,938 - -29,931 33 -1 646,590 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 26,886,138 - 1,898,980 -1,274,938 -130,778 -34,806 536,122 2,356,358 30,237,076 19 (CTHE A,BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of June 30,2013 Comparative Performance Trailling Returns ' QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) 1.20 (5) 10.17 (3) =milk 12.39 (17) 6.16 (26) 4.68 (71) 1110112000 Total Fund Policy 0.91 (9) 9.09 (12) 14.34 (11) 13.42 (5) 6.81 (9) 4.36 (86) All Public Plans-Total Fund Median -0.01 7.23 12.22 11.39 5.45 5.14 Total Fund(New Mgrs)(Net) 1.20 (5) 10.17 (3) 16.65 (2) 12.39 (17) 6.15 (27) 3.23 (66) 10/01/2007 Total Fund Policy 0.91 (9) 9.09 (12) 14.34 (11) 13.42 (5) 6.81 (9) 4.49 (16) All Public Plans-Total Fund Median -0.01 7.23 12.22 11.39 5.45 3.54 Total Fund(Gross) 1.27 (4) 10.69 (2) 17.39 (1) 13.17 6.89 (7)V 5.39 (38) 1110112000 Total Fund Policy 0.91 (9) 9.09 (12) 14.34 (11) 13.42 (5) 6.81 (9) 4.36 (86) All Public Plans-Total Fund Median -0.01 7.23 12.22 11.39 5.45 5.14 Total Fund(New Mgrs)(Gross) 1.27 (4) 10.69 (2) 17.39 (1) 13.17 (6) 6.88 (7) 3.89 (36) 10/01/2007 Total Fund Policy 0.91 (9) 9.09 (12) 14.34 (11) 13.42 (5) 6.81 (9) 4.49 (16) All Public Plans-Total Fund Median -0.01 7.23 12.22 11.39 5.45 3.54 Total Equity I 7.36 =4.91 Total Equity Policy 1.93 13.72 21.00 16.80 5.69 3.44 Total Domestic Equity 2.77 (50) 14.64 (39) 22.92 (29) 16.94 (72) 8.09 (22) 4.70 (40) 11/01/2000 Total Domestic Equity Policy 2.69 (52) 14.34 (42) 21.46 (43) 18.63 (43) 7.22 (49) 2.98 (84) IM U.S.Large Cap Core Equity(SA+CF)Median 2.75 13.86 20.88 18.38 7.15 4.09 Total International Equity 0.69 (35) 17.13 (4) 30.34 (4) 16.76 (3) 4.75 (15) 5.48 (79) 11/01/2000 MSCI EAFE Index -0.73 (60) 11.36 (42) 19.14 (44) 10.55 (42) -0.16 (78) 3.75 (96) IM International Large Cap Value Equity(SA+CF)Median -0.03 10.43 18.47 10.21 1.12 6.62 Total Fixed Inc. 1110112000 Total Fixed Policy -1.78 -1.46 -0.12 3.03 4.76 5.48 Total Domestic Fixed Income -2.72 -1.95 -0.20 3.75 4.95 5.52 11/01/2000 Total Domestic Fixed Policy -1.78 -1.46 -0.12 3.03 4.76 5.48 Total Global Fixed Income -2.72 (33) 2.42 (7) 7.95 (3) N/A N/A 9.01 (3) 12/01/2011 Total Global Fixed Income Policy -2.97 (44) -7.26 (98) -4.49 (100) N/A N/A -2.08 (99) IM Global Fixed Income(MF)Median -3.23 -1.70 1.06 3.79 4.48 3.09 IIMIIM. ..II 10/01/2007 NCREIF Fund Index-ODCE(EVV)(Net) 3.86 9.00 12.02 14.91 -0.18 0.50 Returns for periods greater than one year are annualized.Returns are expressed as percentages. INS 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. 20 cc:: BOGDAHN ♦- GROUP. Comparative Performance Trailing Returns Total Fund As of June 30,2013 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global(Voyageur) 0.69 (35) 17.13 (4) 30.34 (4) 16.76 (3) 4.75 (15) 0.12 (25) 11/01/2007 MSCI EAFE Index -0.73 (60) 11.36 (42) 19.14 (44) 10.55 (42) -0.16 (78) -3.05 (75) IM International Large Cap Value Equity(SA+CF)Median -0.03 10.43 18.47 10.21 1.12 -2.01 Vanguard Total Stock Market(VITSX) 2.77 (43) N/A N/A N/A N/A 6.79 (46) 03/01/2013 Vanguard Total Stock Market Index Hybrid 2.81 (41) 14.40 (55) 21.54 (51) 18.77 (20) 7.47 (24) 6.84 (43) IM U.S.Multi-Cap Core Equity(MF)Median 2.48 14.84 21.58 16.41 6.02 6.64 Galliard Core Fixed Income -1.95 (74) -1.22 (69) 0.56 (60) 3.87 (33) 5.35 (47) 4.88 (83) 10/01/2007 Barclays Intermediate Aggregate Index -1.78 (50) -1.46 (82) -0.12 (90) 3.03 (82) 4.76 (84) 4.89 (83) IM U.S.Intermediate Duration(SA+CF)Median -1.78 -1.00 0.75 3.58 5.31 5.36 Galliard TIPS -5.53 -4.64 -2.97 3.21 3.17 4.62 10/01/2007 BC U.S.Treasury Inflation Notes:1-10 Year -5.52 -4.77 -3.14 3.42 3.32 4.78 Templeton Global Bond Fund(TGBAX) -2.72 (33) 2.43 (7) 7.96 (3) N/A N/A 9.02 (3) 12/01/2011 Citigroup World Government Bond -2.97 (44) -7.26 (98) -4.49 (100) 2.72 (77) 3.04 (83) -2.08 (99) IM Global Fixed Income(MF)Median -3.23 -1.70 1.06 3.79 4.48 3.09 American Core Realty Fund 3.36 (67) 8.58 (67) 11.38 (66) 13.72 (74) -0.54 (58) 0.38 (62) 10/01/2007 American Core Realty Policy 3.86 (47) 9.00 (63) 12.02 (52) 14.33 (65) 3.44 (7) 3.94 (3) IM U.S.Open End Private Real Estate(SA+CF)Median 3.86 9.78 12.24 15.04 0.55 0.83 Intercontinental 4.35 (23) 14.03 (7) 17.23 (7) N/A N/A 15.77 (26) 10/01/2010 NCREIF Fund Index-ODCE(EW)(Net) 3.86 (47) 9.00 (63) 12.02 (52) 14.91 (61) -0.18 (55) 14.14 (65) IM U.S.Open End Private Real Estate(SA+CF)Median 3.86 9.78 12.24 15.04 0.55 14.68 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. 21 BOGDAHN �'-■ GROUP. Comparative Performance Fiscal Year Returns Total Fund As of June 30,2013 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) EM . 10.17 (3) 18.95 (29) -1.17 (80) 10.67 (33) 0.70 (60) -16.84 (91) 13.03 (74) 7.89 (64) Total Fund Policy 9.09 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.23 17.91 0.30 9.98 1.30 -13.67 14.39 8.63 Total Fund(New Mgrs)(Net) 10.17 (3) 18.95 (29) -1.17 (80) 10.66 (33) 0.68 (60) -16.82 (91) N/A N/A Total Fund Policy 9.09 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.23 17.91 0.30 9.98 1.30 -13.67 14.39 8.63 Total Fund(Gro- 10.69 (2) MI9.81 (16) -0.45 (68) 11.40 (21) 1.43 (49) -16.48 (89) 13.92 (58) Total Fund Policy 9.09 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.23 17.91 0.30 9.98 1.30 -13.67 14.39 8.63 Total Fund(New Mgrs)(Gross) 10.69 (2) 19.81 (16) -0.45 (68) 11.40 (21) 1.39 (49) -16.46 (89) N/A N/A Total Fund Policy 9.09 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.23 17.91 0.30 9.98 1.30 -13.67 14.39 8.63 Total Equity Total Equity Policy 13.72 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 14.64 (39) 27.76 (63) -3.30 (89) 14.19 (8) -4.29 (37) -21.66 (62) 17.58 (43) 9.29 (67) Total Domestic Equity Policy 14.34 (42) 30.20 (45) 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 13.86 29.78 1.01 9.50 -5.81 -20.50 16.97 10.76 Total International Equity 17.13 (4) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) -39.55 (100) 23.63 (54) 19.84 (65) MSCI EAFE Index 11.36 (42) 14.33 (53) -8.94 (58) 3.71 (64) 3.80 (64) -30.13 (71) 25.38 (39) 19.65 (68) IM International Large Cap Value Equity(SA+CF)Median 10.43 15.04 -8.40 4.97 5.95 -27.37 23.87 20.84 Total Fixed Income -1.30 9.27 0.64 4.96 Total Fixed Policy -1.46 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income -1.95 5.88 4.67 9.27 10.53 0.64 4.96 3.27 Total Domestic Fixed Policy -1.46 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Global Fixed Income 2.42 (7) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -7.26 (98) N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median -1.70 7.40 1.48 7.82 13.86 -1.39 7.44 2.51 Total Real Estate 12.39 (11) 12.81 (52) 15.82 (79) 2.71 (75) -32.42 (37) 4.72 (40) NIA NCREIF Fund Index-ODCE(EVV)(Net) 9.00 (63) 11.61 (66) 18.27 (39) 6.97 (46) -35.19 (52) 3.19 (54) 18.21 (58) 17.46 (55) IM U.S.Open End Private Real Estate(SA+CF)Median 9.78 12.89 16.62 6.39 -34.36 3.60 18.73 18.08 Returns for periods greater than one year are annualized.Returns are expressed as percentages. TRL 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. 22 Var BOGDAHN GROUP. Comparative Performance Fiscal Year Returns Total Fund As of June 30,2013 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 Lateef Asset Mgmt.Equity N/A 33.21 (8) -1.17 (75) 11.93 (44) 0.53 (22) -15.13 (16) N/A N/A Russell 1000 Growth Index 10.33 (58) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) -20.88 (53) 19.35 (58) 6.04 (57) IM U.S.Large Cap Growth Equity(SA+CF)Median 10.91 27.62 1.21 11.31 -2.98 -20.42 20.32 6.80 RBC Global(Voyageur) 17.13 (4) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) N/A N/A N/A MSCI EAFE Index 11.36 (42) 14.33 (53) -8.94 (58) 3.71 (64) 3.80 (64) -30.13 (71) 25.38 (39) 19.65 (68) IM International Large Cap Value Equity(SA+CF)Median 10.43 15.04 -8.40 4.97 5.95 -27.37 23.87 20.84 Vanguard Total Stock Market(VITSX) N/A N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 14.40 (55) 30.28 (16) 0.71 (23) 11.16 (29) -6.03 (65) -21.19 (29) 16.98 (47) 10.38 (30) IM U.S.Multi-Cap Core Equity(MF)Median 14.84 25.43 -2.21 9.75 -4.43 -23.12 16.75 9.18 Galliard Core Fixed Income -1.22 (69) 5.82 (44) 4.16 (26) 9.63 (17) 12.08 (39) -1.68 (94) N/A N/A Barclays Intermediate Aggregate Index -1.46 (82) 4.31 (84) 4.22 (22) 7.52 (77) 9.69 (81) 4.16 (35) 5.33 (70) 3.84 (60) IM U.S.Intermediate Duration(SA+CF)Median -1.00 5.56 3.60 8.25 11.46 3.26 5.49 3.92 Galliard TIPS -4.64 6.01 6.73 7.28 3.97 7.72 N/A N/A BC U.S.Treasury Inflation Notes:1-10 Year -4.77 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Templeton Global Bond Fund(TGBAX) 2.43 (7) N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -7.26 (98) 3.28 (97) 4.61 (8) 4.98 (95) 13.79 (51) 5.88 (6) 8.69 (33) 2.22 (65) IM Global Fixed Income(MF)Median -1.70 7.40 1.48 7.82 13.86 -1.39 7.44 2.51 American Core Realty Fund 8.58 (67) 11.56 (69) 16.11 (78) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A American Core Realty Policy 9.00 (63) 11.61 (66) 18.27 (39) 5.84 (53) -22.09 (5) 5.27 (29) N/A N/A IM U.S.Open End Private Real Estate(SA+CF)Median 9.78 12.89 16.62 6.39 -34.36 3.60 18.73 18.08 Intercontinental 14.03 (7) 13.38 (41) 15.68 (79) N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE(EW)(Net) 9.00 (63) 11.61 (66) 18.27 (39) 6.97 (46) -35.19 (52) 3.19 (54) 18.21 (58) 17.46 (55) IM U.S.Open End Private Real Estate(SA+CF)Median 9.78 12.89 16.62 6.39 -34.36 3.60 18.73 18.08 Returns for periods greater than one year are annualized.Returns are expressed as percentages. T}lE 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. 23 Var BOGDAHN GROUP. Performance Review Total Fund(Gross) As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Fund(Gross) 29,693 - 629 -432 -20 -10 202 175 30,237 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Fund(Gross) 26,886 - 1,899 -1,275 -131 -35 536 2,356 30,237 Peer Group Analysis-All Public Plans-Total Fund Cummulative Performance $211.70 - 20.00 I $200.00 - 17.00 • $193.66 14.00 • $180.00 ■ 78.54 • • • • 11.00 - • c • a F. 8.00 ■ • • •5 $,40.00 .00 - =I 2.00 - • $120.00 - • -1.00 ■ $100.00 - -4.00 - I I I I I I $80.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR •Total Fund(Gross) 1.27 (4) 10.69 (2) 17.39 (1) 8.32 (7) 13.17 (6) 13.17 (6) 6.89 (7) $60.00 -I I I I I I I I I •Total Fund Policy 0.91 (9) 9.09 (12) 14.34 (11) 8.69 (3) 13.42 (5) 12.71 (17) 6.81 (9) 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 6/13 Median -0.01 7.23 12.22 6.49 11.39 11.72 5.45 - Total Fund(Gross) - Total Fund Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total Fund(Gross) 7.28 (4) 1.88 (43) 6.06 (2) -3.30 (93) 9.91 (4) 6.30 (41) Total Fund Policy 6.60 (12) 1.41 (63) 4.82 (46) -1.92 (49) 8.54 (38) 7.18 (17) All Public Plans-Total Fund Median 5.46 1.73 4.77 -1.95 8.15 6.09 24 /0THE 4,BOGDAHN GROUP. Performance Review Total Fund(Gross) As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years = 3 Yr Rolling Percentile Ranking-5 Years 21s / 0.00 F 18.0 Perfoorvmear nce a e e 25.55 8 o O O 8 e 12.0 O" s.o t 50.00 0000 0 00 o O o g o. O O o.o E 75.00 OOOO o00 •iO -6.0 Under 11 O O Performance K I 1 1 1 1 1 1 1 1 1 100.00 I I -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 Total Fund Policy(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count 4. •Total Fund(Gross) 20 6 (30%) 3 (15%) 8 (40%) 3 (15%) Earliest Dale X Latest Dale •Total Fund Policy 20 4 (20%) 12 (60%) 4 (20%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.73 C 7.00 13.30 C • • • 6 ems`.6.50 • 12.60 6.00 rc 11.90 It 5.50 11.20 I I 1 I I I I I I I 1 10.00 10.20 10.40 10.60 10.80 11.00 11.20 11.40 11.60 11.80 12.90 13.20 13.50 13.80 14.10 14.40 14.70 15.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 13.17 11.59 •Total Fund(Gross) 6.89 14.74 • Total Fund Policy 13.42 10.12 •Total Fund Policy 6.81 13.15 Median 11.39 10.14 Median 5.44 13.65 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.10 106.39 130.44 -1.83 -0.03 1.14 1.13 6.92 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.31 1.00 5.57 Historical Statistics-5 Years = ' Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.54 108.64 112.76 -0.52 0.12 0.51 1.11 9.69 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.55 1.00 8.36 TILE 25 (� , BOG DAHN ♦j GROUP. Performance Review Total Domestic Equity As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Domestic Equity 15,410 - - - - - 74 353 15,837 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Domestic Equity 13,751 124 - - -61 -2 251 1,774 15,837 Peer Group Analysis-IM U.S.Large Cap Core Equity(SA+CF) Cumulative Performance 31.93 $198.70 28.00 $180.00 • $180.77 24.00 • • $160.00 -, '156.66 20.00 ■ i NI 116 $140.00 ■ . 16.00 12.00 • $120.00 ■ 8.00 • • $100.00 - AVA Ile 4.00 OE $80.00 0.00 $60.00 ■ -4.00 - I I I I I I I I I I I I I I 1 1 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 6/13 •Total Domestic Equity 2.77 (50) 14.64 (39) 22.92 (29) 10.13 (77) 16.94 (72) 16.97 (53) 8.09 (22) •Total Domestic Equity Policy 2.69 (52) 14.34 (42) 21.46 (43) 12.31 (49) 18.63 (43) 17.72 (39) 7.22 (49) - Total Domestic Equity Median 2.75 13.86 20.88 12.26 18.38 17.13 7.15 - Total Domestic Equity Policy Comparative Performan 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total Domestic Equity 11.15 (35) 0.36 (39) 7.22 (23) -5.85 (89) 13.48 (41) 11.53 (59) Total Domestic Equity Policy 11.07 (38) 0.25 (42) 6.23 (57) -3.15 (36) 12.87 (54) 12.12 (41) IM U.S.Large Cap Core Equity(SA+CF)Median 10.67 0.04 6.43 -3.59 13.07 11.80 THE 26 ("04,BOGDAHN GROUP. Performance Review Total Domestic Equity As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 30.0 0.00 Over 0 x Performance 20.0 rc 25.00 0 O O 9 w• 10.0 0 0 0 OO 0 0 ° 0 0 fo • O ` 50.00 O O 0 0 O O OO m o a 75.00 0 0 D•-10.0 Under 1 , O A gPerformance re 100.00 r - -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 Total Domestic Equity Policy(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •Total Domestic Equity 20 2(10%) 9(45%) 8(40%) 1 (5%) + Earliest Date X Latest Date •Total Domestic Equity Policy 20 0(0%) 8(40%) 12(60%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 18.97 - 8.24 - 18.60 0 • ea0 e e • 18.00 7.60 rc 17.40 rc 16.80 • 7.20 II I I I I I I I I I I I I I I I I 15.80 16.00 16.20 16.40 16.60 16.80 17.00 17.20 17.40 21.00 21.10 21.20 21.30 21.40 21.50 21.60 21.70 21.80 21.90 21.98 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 16.94 17.26 •Total Domestic Equity 8.09 21.85 • Total Domestic Equity Policy 18.63 16.01 •Total Domestic Equity Policy 7.22 21.40 Median 18.38 15.84 Median 7.15 21.07 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.76 100.98 113.47 -2.92 -0.45 1.09 1.10 8.62 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.29 1.00 7.56 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 3.74 104.89 102.00 0.64 0.28 0.48 1.05 13.82 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.45 1.00 13.30 THE 27 cBOGDAHN ♦~� GROUP. Page Intentionally Left Blank 28 el BOGDAHN N.,---' GROUP. Performance Review Vanguard Total Stock Market(VITSX) As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Vanguard Total Stock Market(VITSX) 15,410 - - - - - 74 353 15,837 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Vanguard Total Stock Market(VITSX) - 14,258 - - - - 143 1,436 15,837 Peer Group Analysis-IM U.S.Multi Cumulative Performance 35.73 $103.45 $103.20 32.00 - $102.80 Ilj 2'91 28.00 ■ 24.00 - $102.40 20.00 - $102.00 ■ 1 16.00 - IM $101.60 T, ki 12.00 - $101.20 - 8.00 - • $100.80 ■ 4.00 ■ $100.40 0.00 ■ $100.00 - -4.00 ■ I I I I I $99.60 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 5/13 6/13 •Vanguard Total Stock Market(VITSX) 2.77 (43) N/A N/A N/A N/A N/A N/A •Vanguard Total Stock Market Index Hybrid 2.81 (41) 14.40 (55) 21.54 (51) 12.40 (16) 18.77 (20) 18.07 (21) 7.47 (24) -Vanguard Total Stock Market(VITSX) Median 2.48 14.84 21.58 10.04 16.41 15.98 6.02 - Vanguard Total Stock Market Index Hybrid Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Vanguard Total Stock Market(VITSX) N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 11.06 (41) 0.19 (79) 6.24 (33) -3.16 (20) 12.94 (38) 12.12 (30) IM U.S.Multi-Cap Core Equity(MF)Median 10.74 1.47 5.76 -4.54 12.62 10.89 TILE 29 c: ) BOGDAHN ♦~� GROUP. Performance Review Total International Equity As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total International Equity 4,484 10 - - -10 -1 73 -43 4,514 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total International Equity 3,856 29 - - -29 -2 131 530 4,514 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance $209.50 , 35.00 ■ $200.00 ■ $189.11 30.00 ■ • $180.00 • / 25.00 ■ 1 $160.00 I / $59.92 20.00 ■ • Mb • • 1 Pi 5.00 _ $140.00 10.00 - i • r■ Mill $120.00 • 5.00 ■ ■ _ AN - $,00.00 . /...' 0.00 -5.00 _ $80.00 • r -10.00 - I I I I I I $60.00 • QTR FYTD 1YR 2YR 3YR 4YR 5YR •Total International Equity 0.69 (35) 17.13 (4) 30.34 (4) 7.31 (10) 16.76 (3) 17.27 (3) 4.75 (15) I I I I I I I I I • MSCI EAFE Index -0.73 (60) 11.36 (42) 19.14 (44) 1.58 (56) 10.55 (42) 9.49 (56) -0.16 (78) 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 6/13 -Median -0.03 10.43 18.47 2.01 10.21 9.65 1.12 Total International Equity MSCI EAFE Index Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total International Equity 8.79 (4) 6.93 (33) 11.28 (2) -6.02 (33) 17.64 (2) 1.40 (91) MSCI EAFE Index 5.23 (35) 6.60 (41) 6.98 (57) -6.85 (50) 10.98 (50) 3.38 (56) IM International Large Cap Value Equity(SA+CF)Median 4.30 6.18 7.27 -6.88 10.96 3.55 THE (C)4,TBOGDAHN 30 GROUP. Performance Review Total International Equity As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years a 33.0 Over 0.00 • 0 0 0 0 0 0 Performance 0 • w 22.0 w 25.00 • Z 00(9 11.00 X 0 0 °m 0.0 `w 50.00 0 • 0 0 O 0 0 -11.0 0• - + 75.00 000 ° 0000000 O Under 11 0 0 0 F-22.0 Performance re .00 100 • • 0 0 0 -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •Total International Equity 20 8 (40%) 2 (10%) 2 (10%) 8 (40%) + Earliest Date X Latest Date • MSCI EAFE Index 20 0 (0%) 1 (5%) 17 (85%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 17.60 5.55 • • e%15.40 e% 4.00 5 13.20 5 2.00 11 11 Kt re 00 0 0.00 • I I I I I I I I I I I I 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 21.00 21.46 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 31.64 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 16.76 20.84 •Total International Equity 4.75 30.69 • MSCI EAFE Index 10.55 17.21 • MSCI EAFE Index -0.16 25.42 Median 10.21 17.28 Median 1.12 24.45 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 5.94 114.62 93.83 5.26 0.99 0.87 1.06 11.78 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.64 1.00 11.49 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 7.31 117.89 100.02 5.60 0.79 0.30 1.12 18.85 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.10 1.00 16.86 THE 31 (: 9 BOGDAHN ♦~� GROUP. Performance Review RBC Global(Voyageur) As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 RBC Global(Voyageur) 4,484 10 - - -10 -1 73 -43 4,514 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 RBC Global(Voyageur) 3,856 29 - - -29 -2 131 530 4,514 Cumulative Performance $120.00 ■ 35.00 ■ $112.10 30.00 ■ • $110.00 • 25.00 ■ $100.00 • \ 20.00 ■ Mb • • $90.00 '99.73 15.00 - 10.00 - • WI $80.00 • 5.00 ■ ■ $70.00 0.00 0.00 - i MI $60.00 • -5.00 - $50.00 • -10.00 -_ 1 1 1 1 1 I $40.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global(Voyageur) 0.69 (35) 17.13 (4) 30.34 (4) 7.31 (10) 16.76 (3) 17.27 (3) 4.75 (15) 't t I I I I I • MSCI EAFE Index -0.73 (60) 11.36 (42) 19.14 (44) 1.58 (56) 10.55 (42) 9.49 (56) -0.16 (78) 2/08 9/08 6/09 3/10 12/10 9/11 6/12 6/13 Median -0.03 10.43 18.47 2.01 10.21 9.65 1.12 - RBC Global(Voyageur) - MSCI EAFE Index Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 RBC Global(Voyageur) 8.79 (4) 6.93 (33) 11.28 (2) -6.02 (33) 17.64 (2) 1.40 (91) MSCI EAFE Index 5.23 (35) 6.60 (41) 6.98 (57) -6.85 (50) 10.98 (50) 3.38 (56) IM International Large Cap Value Equity(SA+CF)Median 4.30 6.18 7.27 -6.88 10.96 3.55 TILE 32 ( , BOG DAHN \~� GROUP. Performance Review RBC Global(Voyageur) As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years • 30.0 Over 0.00 • 0 0 0 0 0 0 Performance O 25.00 • e▪ 20.0 - • F O X 50.00 • 0 ? 10.0 000° a 00 0 ° 000000• 000000 00 E 75.00 0 0 0 5 0.0 m Under 100.00 re Performance 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 -10.0 T -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 31.5 Total Period 5-25 25-Median Median-75 75-95 MSCI EAFE Index(%) Count Count Count Count • RBC Global(Voyageur) 11 8 (73%) 2 (18%) 1 (9%) 0 (0%) • Over Performance + Earliest Date X Latest Date if MSCI EAFE Index 20 0 (0%) 1 (5%) 17 (85%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 17.60 5.55 - • • e%15.40 e% 4.00 5 13.20 5 2.00 11 11 Kt re 00 0 0.00 0 I I I I I I I I I I I I 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 21.00 21.46 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 31.64 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 16.76 20.84 • RBC Global(Voyageur) 4.75 30.69 • MSCI EAFE Index 10.55 17.21 • MSCI EAFE Index -0.16 25.42 Median 10.21 17.28 Median 1.12 24.45 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 5.94 114.62 93.83 5.26 0.99 0.87 1.06 11.78 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.64 1.00 11.49 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 7.31 117.89 100.02 5.60 0.79 0.30 1.12 18.85 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.10 1.00 16.86 ILE 33 ("04,TBOGDAHN GROUP. Performance Review Total Domestic Fixed Income Composite As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Domestic Fixed Income Composite 5,776 - - - -3 - 3 -160 5,616 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Domestic Fixed Income Composite 5,723 15 - - -10 - 11 -123 5,616 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 947 $215.00 8.00 $200.00 - 6.®s 6.00 $180.00 ■ • 4.00 $160.00 ■ se 2.00 $140.00 - 0.00 $,20.00 - -2.00 • $,00.00 - -4.00 I I r I t I I I I I I I I I t r 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 6n1 6/13 •Total Domestic Fixed Income Composite -2.72 (100) -1.95 (98) -0.20 (90) 2.91 (69) 3.75 (42) 5.61 (28) 4.95 (70) •Total Domestic Fixed Policy -1.78(50) -1.46 (82) -0.12 (90) 2.54 (89) 3.03 (82) 4.42 (79) 4.76 (84) - Total Domestic Fixed Income Composite Median -1.78 -1.00 0.75 3.20 3.58 4.98 5.31 - Total Domestic Fixed Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total Domestic Fixed Income Composite 0.30 (60) 0.49 (37) 1.79 (46) 1.78 (16) 1.10 (53) 1.08 (48) Total Domestic Fixed Policy 0.15 (90) 0.18 (86) 1.36 (85) 1.32 (69) 0.66 (80) 0.91 (77) IM U.S.Intermediate Duration(SA+CF)Median 0.33 0.40 1.74 1.46 1.16 1.07 34 /0THE 4,BOGDAHN GROUP. Performance Review Total Domestic Fixed Income Composite As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years E 10.0 = 0.00 Over Performance O O O O O 0• 8.0 0 � zs.00 o .o 0 6.0 O • o 50.00 0 0 0 0 0 a 0000° 8 x a.o X E 7s.00 ° 0 0 0 0 0 0 0 0 ° • 2.0 Under v 0 , 00000 i� ° O O Performance re ' ' 100.00 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 Total Domestic Fixed Policy(%) Total 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Period Count Count Count Count •Total Domestic Fixed Income Composite 20 6(30%) 2(10%) 3(15%) 9(45%) + Earliest Date X Latest Date if Total Domestic Fixed Policy 20 0(0%) 3(15%) 13(65%) 4(20%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.86 5.39 • e,3.60 e%5.20■ 330 5 5.00■ • re re 3.00 • 4.80- • 1 I I I I I 2.30 2.40 2.50 2.60 2.70 2.80 2.90 2.99 2.60 2.80 3.00 3.20 3.40 3.60 3.80 4.00 4.10 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 3.75 2.89 •Total Domestic Fixed Income Composite 4.95 3.90 • Total Domestic Fixed Policy 3.03 2.33 •Total Domestic Fixed Policy 4.76 2.62 Median 3.58 2.63 Median 5.31 3.37 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 0.81 119.88 112.73 0.38 0.87 1.48 1.11 1.49 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.39 1.00 1.18 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 2.15 112.73 134.04 -0.19 0.10 1.20 1.08 2.53 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.52 1.00 1.43 35 (CTILE )4,BOGDAHN GROUP. Performance Review Galliard Core Fixed Income As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Galliard Core Fixed Income 4,528 - - - - - - -88 4,440 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Galliard Core Fixed Income 4,495 3 - - -3 - - -55 4,440 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 9.40 $140.00 = 8.00 $135.00 ■ 1.64 $130.00 ■ 6.00 • �• $125.00 - 4.00 • O i $120.00 _ T, 2.00 $115.00 _ re IIM $„0.00 _ 0.00 $,05.00 _ -2.00 AM` $100.00 ■ - $95.00 ■ 4.00 ■ I t r t t r 1 1 1 1 1 r 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 3/12 6/13 •Galliard Core Fixed Income -1.95 (74) -1.22 (69) 0.56 (60) 3.32 (46) 3.87 (33) 5.86 (20) 5.35 (47) • Barclays Intermediate Aggregate Index -1.78 (50) -1.46 (82) -0.12 (90) 2.54 (89) 3.03 (82) 4.42 (79) 4.76 (84) - Galliard Core Fixed Income Median -1.78 -1.00 0.75 3.20 3.58 4.98 5.31 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Galliard Core Fixed Income 0.28 (64) 0.46 (39) 1.80 (45) 1.84 (14) 1.01 (61) 1.05 (55) Barclays Intermediate Aggregate Index 0.15 (90) 0.18 (86) 1.36 (85) 1.32 (69) 0.66 (80) 0.91 (77) IM U.S.Intermediate Duration(SA+CF)Median 0.33 0.40 1.74 1.46 1.16 1.07 THE 36 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard Core Fixed Income As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 10.0 over 0.00 Performance p° 0 0 0 0 0 8.0 0 zs.00 O O O • LL 6.0 + v 50.00 0 0 0 0 • • X O E 75.00 O O O O O p 0 0 0 0 0 0 4'0 under v U * • • 0 0 0 0 Performance re 100.00 1- 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 Barclays Intermediate Aggregate Index(%) Total 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Period Count Count Count Count •Galliard Core Fixed Income 12 6(50%) 4(33%) 0(0%) 2(17%) ▪ Earliest Date X Latest Date if Barclays Intermediate Aggregate Index 20 0(0%) 3(15%) 13(65%) 4(20%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.90 0 5.40- • e2` 6 3.60 .5.20- w 3.30 ?5.00- re re 3.00 • 4.80- • r I I I I L 1 1__i_ I I I I 1 2.30 2.35 2.40 2.45 2.50 2.55 2.60 2.65 2.70 2.40 2.60 2.80 3.00 3.20 3.40 3.60 3.80 4.00 4.20 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 3.87 2.67 •Galliard Core Fixed Income 5.35 3.97 • Barclays Intermediate Aggregate Index 3.03 2.33 • Barclays Intermediate Aggregate Index 4.76 2.62 Median 3.58 2.63 Median 5.31 3.37 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.60 115.98 93.81 0.75 1.36 1.68 1.02 1.25 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.39 1.00 1.18 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 2.08 113.20 115.41 0.55 0.28 1.37 1.01 2.25 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.52 1.00 1.43 THE 37 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard TIPS As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Galliard TIPS 1,248 - - - -3 - 3 -72 1,175 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Galliard TIPS 1,228 12 - - -7 - 11 -68 1,175 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance $145.00 = 11.00 - $140.00 - 8.00 - $135.00 - $g qq 5.00 - b :63 $130.00 - 2.00 ■ MO 0 $125.00 ■ E OM $120.00 - re -1.00 - •• $115.00 - -4.00 - •• $110.00 ■ ■ -7.00 - $105.00 - $100.00 - -10.00 - I I 1 I 1 I $95.00 - _ 1 I I I I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 3/12 6/13 •Galliard TIPS -5.53 (15) -4.64 (4) -2.97 (12) 1.34 (97) 3.21 (95) 4.46 (98) 3.17(100) • BC U.S.Treasury Inflation Notes:1-10Year -5.52 (14) -4.77 (11) -3.14 (24) 1.45 (92) 3.42 (87) 4.67 (97) 3.32(97) - Galliard TIPS Median -7.04 -6.54 -4.49 3.22 4.66 5.95 4.52 - BC U.S.Treasury Inflation Notes:1-10 Year Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Galliard TIPS 0.35 0.59 1.74 1.59 1.16 1.39 BC U.S.Treasury Inflation Notes:1-10 Year 0.33 0.46 1.71 1.34 1.44 1.69 JON d TILE 38 (: / BOGDAHN ♦~� GROUP. Performance Review Galliard TIPS As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 9.0- Over Performance rc 8.0- • 25.00 O •7.0- • it • u 50.00 0 6.0■ a 0 0 0 0 e 5.0- 75.00 O • ..• 40 • Under 100.00 0000808 © 0 0 0 0 8 3.0- Performance 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 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 •Galliard TIPS 12 0(0%) 0(0%) 0(0%) 12(100°r • Under Performance + Earliest Date X Latest Date • BC U.S.Treasury Inflation Notes:1-10 Year 20 1 (5%) 1 (5%) 5(25%; 13(65%; Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 4.88 - 4.73 -2,.,4.50 4.50■ ems`, R.- 4.00 =4.00■ E rc3.50 O rc 3.50■ 0 3.00 O 1 1 1 I I I I 3.00 • I I I I 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 6.00 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 5.92 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 3.21 4.12 •Galliard TIPS 3.17 4.52 • BC U.S.Treasury Inflation Notes:1-10 Year 3.42 4.17 • BC U.S.Treasury Inflation Notes:1-10 Year 3.32 5.22 Median 4.66 5.83 Median 4.52 5.74 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.94 97.17 100.54 -0.12 -0.22 0.84 0.98 2.53 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 0.91 1.00 2.45 Historical Statistics-5 Y Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.29 91.88 90.00 0.23 -0.14 0.55 0.88 3.90 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 0.53 1.00 4.37 THE 39 (C)4,BOGDAHN GROUP. Performance Review Total Global Fixed Income Composite As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Global Fixed Income Composite 1,023 -10 - - - - 10 -37 985 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Global Fixed Income Composite 1,019 -59 - - - - 59 -34 985 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 13.66 $121.45 - $120.00 ■ 11.00 $117.00 ■ .' 4.56 8.00 ■ • $114.00 ■ 5.00 - $111.00 ■ 2.00 ■ • $108.00 - rc ■ $105.00 ■ -1.00 ■ $102.00 -4.00 • $99.00 -7.00 ■ $96.00 - ''5.90 -10.00 - 1 1 1 1 1 1 $93.00 - I 1 I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/12 3/12 6/12 9/12 12/12 3/13 6/13 •Total Global Fixed Income Composite -2.72 (33) 2.42 (7) 7.95 (3) N/A N/A N/A N/A •Total Global Fixed Income Policy -2.97 (44) -7.26 (98) -4.49 (100) N/A N/A N/A N/A - Total Global Fixed Income Composite Median -3.23 -1.70 1.06 1.93 3.79 5.11 4.48 Total Global Fixed Income Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total Global Fixed Income Composite 1.42 (8) 3.81 (4) 5.40 (13) -1.00 (97) 7.19 (5) N/A Total Global Fixed Income Policy -2.77 (99) -1.70 (100) 2.99 (75) 0.92 (37) -0.51 (100) N/A IM Global Fixed Income(MF)Median -0.45 1.11 3.43 0.58 2.37 0.86 THE (C)4,TBOGDAHN 40 GROUP. Performance Review Templeton Global Bond Fund(TGBAX) As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Templeton Global Bond Fund(TGBAX) 1,023 -10 - - - - 10 -37 985 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Templeton Global Bond Fund(TGBAX) 1,019 -59 - - - - 59 -34 985 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 13.66 $121.45 - $120.00 ■ 11.00 $117.00 ■ .' 4.57 8.00 • $114.00 ■ 5.00 $111.00 ■ • ■ 2.00 0 0 $108.00 - re ■ $105.00 ■ -1.00 I $102.00 4.00 • $99 $99.00 -7.00 ■ $96.00 - ''5.90 -10.00 - 1 1 1 1 1 1 $93.00 - I 1 I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2/12 3/12 6/12 9/12 12/12 3/13 6/13 •Templeton Global Bond Fund(TGBAX) -2.72 (33) 2.43 (7) 7.96 (3) N/A N/A N/A N/A •Citigroup VVorld Government Bond -2.97 (44) -7.26 (98) -4.49 (100) -0.98 (94) 2.72 (77) 2.80 (97) 3.04 (83) - Templeton Global Bond Fund(TGBAX) Median -3.23 -1.70 1.06 1.93 3.79 5.11 4.48 - Citigroup World Government Bond Comparative Performance A 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Templeton Global Bond Fund(TGBAX) 1.42 (8) 3.83 (4) 5.40 (13) -1.00 (97) 7.19 (5) N/A Citigroup VVorld Government Bond -2.77 (99) -1.70 (100) 2.99 (75) 0.92 (37) -0.51 (100) -0.13 (86) IM Global Fixed Income(MF)Median -0.45 1.11 3.43 0.58 2.37 0.86 THE 41 ("04,BOGDAHN GROUP. Performance Review Total Real Estate As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Real Estate 2,550 -9 - - -6 - 41 62 2,638 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Total Real Estate 2,393 -18 - - -31 - 85 208 2,638 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance $113.45 - 24.00 . $110.00 ■ $106.73 20.00 $105.00 ■ 02.93 $100.00 ■ 16.00 • • $95.00 12.00 • MI - $90.00 T, 8.00 $85.00 IIM re 4.00 Aim $80.00 - 0.00 $75.00 $70.00 ■ -4.00 $65.00 ■ -8.00 1 1 1 1 1 1 $60.00 ■ 1 I I 1 I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/07 6/08 3/09 12/09 9/10 6/11 3/12 6/13 •Total Real Estate 4.06 (36)12.39 (11)15.46 (14)14.37 (24)15.36 (46) 8.05 (69) 0.32 (52) • NCREIF Fund Index-Open End Diversified Core(EVV) 3.86 (47) 9.00 (63)12.02 (52)12.22 (70)14.91 (61) 9.29 (47)-0.18 (55) - Total Real Estate Median 3.85 9.78 12.24 13.20 15.04 9.08 0.55 - NCREIF Fund Index-Open End Diversified Core(EN) Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Total Real Estate 2.70 (57) 5.16 (8) 2.73 (60) 2.67 (62) 2.99 (68) 3.85 (34) NCREIF Fund Index-Open End Diversified Core(EVV) 2.68 (57) 2.21 (76) 2.77 (53) 2.58 (64) 2.82 (71) 2.97 (52) IM U.S.Open End Private Real Estate(SA+CF)Median 3.07 2.54 2.79 2.88 3.43 3.04 42 (CTHE )4,BOGDAHN GROUP. Performance Review Total Real Estate As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years - 0.00 18.0 Over Performance re 12.0 _ 25.00 w 6.0 • u 50.00 0 o ° o ° ° ° 09098e 0000 0 o.o • a 0 O 00 0 0 It • E 75.00 0 0 1, -6.0 FUnder -M.-12.0 Performance 100.00 I I -I--I- 1 1 1 1 1 1 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 -15.0 -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 20.1 NCREIF Fund Index-Open End Diversified Core(EW)(%) Total 5-25 25- Median- 75-95 Period Count Median 75 Count • Over Performance • Under Performance Count Count •Total Real Estate 12 0(0%) 4(33°/ 7(58°, 1(8%) + Earliest Date X Latest Date • NCREIF Fund Index-Open End Diversified Core(EVV) 20 0(0%) 15(75°/ 5(25°/ 0(0%) Peer Group Scattergram-3 Years- Peer Group Scattergram-5 Years 15.40 • 0.60 15.20 0.30 • re 15.00 rc 0.00 • • I I I I I I I 1 I 1 I 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 10.50 10.60 10.70 10.80 10.90 11.00 11.10 11.20 11.30 11.38 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Real Estate 15.36 1.56 •Total Real Estate 0.32 10.59 • NCREIF Fund Index-Open End Diversified Core(EVV) 14.91 2.01 • NCREIF Fund Index-Open End Diversified Core(EVV) -0.18 11.28 Median 15.04 2.70 Median 0.55 11.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 2.08 102.84 N/A 11.19 0.19 9.35 0.27 0.00 NCREIF Fund Index-Open End Diversified Core(EVV) 0.00 100.00 N/A 0.00 N/A 7.06 1.00 0.00 Historical Statistics-5 Years ■ Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 2.74 97.31 92.56 0.46 0.15 0.06 0.91 8.77 NCREIF Fund Index-Open End Diversified Core(EVV) 0.00 100.00 100.00 0.00 N/A 0.02 1.00 9.54 THE 43 (: ) BOGDAHN ♦~� GROUP. Performance Review American Core Realty Fund As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 American Core Realty Fund 749 -9 - - -2 - 9 16 763 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 American Core Realty Fund 725 -18 - - -6 - 31 30 763 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance $130.00 24.00 ■ $120.00 $121.02 20.00 ■ 16.00 ■ 1M $110.00 12.00 ■ ■ $102.23 E $100.00 8.00 et $90.00 4.00 - mom 0.00 - $80.00 -4.00-4.00 - $70.00 -8.00 - I I I I I I _ $60.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR I I I I I 11/07 6/08 3/09 12/09 9/10 6/11 3/12 6/13 •American Core Realty Fund 3.36 (67) 8.58 (67) 11.38 (66) 11.80 (74) 13.72 (74) 6.89 (79) -0.54 (58) • NCREIF Property Index 2.87 (79) 8.20 (74) 10.73 (81) 11.38 (78) 13.14 (90) 9.29 (47) 2.79 (11) -American Core Realty Fund Median 3.85 9.78 12.24 13.20 15.04 9.08 0.55 - NCREIF Property Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 American Core Realty Fund 2.49 (65) 2.50 (55) 2.58 (69) 2.72 (61) 3.02 (60) 2.77 (65) NCREIF Property Index 2.57 (61) 2.54 (51) 2.34 (85) 2.68 (61) 2.59 (84) 2.96 (52) IM U.S.Open End Private Real Estate(SA+CF)Median 3.07 2.54 2.79 2.88 3.43 3.04 44 (CTHE )4,BOGDAHN GROUP. Performance Review American Core Realty Fund As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years , 17.e over o.00 000000000000 12.0 Performance ✓ yam. 25.00 0 0 • 6.0 • 0 0 0 0 re • 50.00 - 0 0.0 w O O O a Q u -6.0 75.00 ■ O 8 O• • +� Under w O O O O O C-12.0 Performance re 1 1 1 1 1 1 1 1 1 100.00 I Ti _ -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 17.8 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 NCREIF Property Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •American Core Realty Fund 12 0(0%) 3(25%) 6(50%) 3(25%) + Earliest Date X Latest Date • NCREIF Property Index 20 14(70%) 2(10%) 1(5%) 3(15%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.33 3.31 - ^14.70 2.40 ■ • e2`, ms`. 14.00 E 1.20 - re • Kt 0.00 3.30 - • • I I I I I I I I I I I I I I1 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 2.90 7.00 7.50 8.00 8.50 9.00 9.50 10.00 10.50 11.00 11.50 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation •American Core Realty Fund 13.72 1.41 •American Core Realty Fund -0.54 10.29 • NCREIF Property Index 13.14 1.34 • NCREIF Property Index 2.79 7.59 Median 15.04 2.70 Median 0.55 11.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 0.99 104.22 N/A 3.28 0.54 9.32 0.78 0.00 NCREIF Property Index 0.00 100.00 N/A 0.00 N/A 9.43 1.00 0.00 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 3.82 100.24 158.06 -3.88 -0.80 -0.02 1.29 8.77 NCREIF Property Index 0.00 100.00 100.00 0.00 N/A 0.36 1.00 5.74 THE 45 (� BOG DAHN j, GROUP. Page Intentionally Left Blank 46 Performance Review Intercontinental As of June 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 04/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Intercontinental 1,801 - - - -4 - 32 46 1,876 Financial Reconciliation October 1,2012 To June 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 06/30/2013 Intercontinental 1,668 - - - -25 - 55 178 1,876 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance $157.50 - 24.00 . $150.00 ■ $149.57 20.00 143.88 16.00 • • $140.00 ■ • MI 12.00 MI - $130.00 ■ r 8.00 IIM II re 4.00 $120.00 dfdlim 0.00 L $110.00 - -4.00 $100.00 • -8.00 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 11/10 6/11 3/12 12/12 6/13 • Intercontinental 4.35 (23)14.03 (7) 17.23 (7) 15.49 (12) N/A N/A N/A • NCREIF Fund Index-Open End Diversified Core(EVV) 3.86 (47) 9.00 (63)12.02 (52)12.22 (70)14.91 (61) 9.29 (47)-0.18 (55) - Intercontinental Median 3.85 9.78 12.24 13.20 15.04 9.08 0.55 - NCREIF Fund Index-Open End Diversified Core(EVV) Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Intercontinental 2.79 (55) 6.32 (7) 2.80 (49) 2.65 (62) 2.97 (69) 4.35 (24) NCREIF Fund Index-Open End Diversified Core(EVV) 2.68 (57) 2.21 (76) 2.77 (53) 2.58 (64) 2.82 (71) 2.97 (52) IM U.S.Open End Private Real Estate(SA+CF)Median 3.07 2.54 2.79 2.88 3.43 3.04 ILE 47 (� , TBOGDAHN ♦~� GROUP. Manager Performance Reviews THE 48 l� BOGDAHN GROUP Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of June 30,2013 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 YPC C N w 50.0 a C 75.0— I 100.0 i i i i i I i I i 1 i i i I i I I I I 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 3/13 6/13 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count International Equity 38 20 (53%) 5 (13%) 9 (24%) 4 (11%) MSCI EAFE Index 38 0 (0%) 0 (0%) 22 (58%) 16 (42%) Manager composite returns used for chart population. emaket TILE 49 c BOGDAHN � GROUP. Relative Performance International Equity Since Inception Ending June 30,2013 Relative Performance 16.0 14.0 12.0 10.0 8.0–I 6.0 � I 4.0– 20.00 I I 1 I Iiiii II t I II ■II ■II III I I II1 IIII I■I I■I VIII_ .1 III ■ III I ill II I IIII 1 .. I I IIII■JI z.o— I I■ II 1 II I• I I�I �I I I■I ■ I 1 ' -I■I �I I I I I I 1_111 11111111 1 4 I 11 I -4.0– -6.0– -8.0 -10.0– -12.0– -14.0– -16.0– -18.0 -20.0 20.9 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 10/12 6/13 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. THE BOGDAHN 50 `~� GROUP. Performance Review RBC Global Asset Management As of June 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To June 30,2013 No data found. Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance $474.00 35.00 $440.00 $411.08 30.00 ■ • $400.00 25.00 - $360.00 20.00 ■ $320.00 • Mb • • E 15.00 - $280.00 an,0.00 • MIE $240.00 5.00 ■ ■ $181.59 0.00 - dm $160.00 - $,20.00 5.00 _ $80.00 I I I I I -,0.00 - 1 $40.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • International Equity 0.67 (35) 17.07 (4) 30.24 (4) 7.22 (11) 17.20 (1) 17.48 (2) 4.98 (15) • MSCI EAFE Index -0.73 (60) 11.36 (42) 19.14 (44) 1.58 (56) 10.55 (42) 9.49 (56) -0.16 (78) 8/98 9/00 12/02 3/05 6/07 9/09 12/11 6/13 -Median -0.03 10.43 18.47 2.01 10.21 9.65 1.12 International Equity MSCI EAFE Index Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 International Equity 8.77 (4) 6.92 (33) 11.25 (2) -6.04 (36) 17.61 (2) 1.39 (91) MSCI EAFE Index 5.23 (35) 6.60 (41) 6.98 (57) -6.85 (50) 10.98 (50) 3.38 (56) IM International Large Cap Value Equity(SA+CF)Median 4.30 6.18 7.27 -6.88 10.96 3.55 51 (CTHE ),„BOGDAHN GROUP. Performance Review RBC Global Asset Management As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years • 33.0 Over c 0.00 O O O O O o ° D Performance 0 ,-, 0 - 22.0 25.00 w 11.0 O X = • o•5 ,� 50.00 O ° o 0 0 0 °e 0.0 0 a ° °c o-11.0 75.00 Q 8 V ° °• Under 1 ° 0 0 0 IL -22.0 Performance - 100.00 • • 0 -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • International Equity 20 9 (45%) 1 (5%) 2 (10%) 8 (40%) + Earliest Date X Latest Date if MSCI EAFE Index 20 0 (0%) 1 (5%) 17 (85%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 18.00 • 5.78 - • 4.00 e-15.00 e 2.00 15• 12.00 re Q 0.00 O I I I I I I I I I I I I 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 21.00 21.46 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 31.64 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 17.20 20.84 • International Equity 4.98 30.65 • MSCI EAFE Index 10.55 17.21 • MSCI EAFE Index -0.16 25.42 Median 10.21 17.28 Median 1.12 24.45 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 5.72 115.91 94.02 5.63 1.10 0.89 1.07 11.79 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.64 1.00 11.49 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 7.17 118.52 100.03 5.81 0.83 0.31 1.12 18.84 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.10 1.00 16.86 ILE 52 (� , TBOGDAHN \j GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of June 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To June 30,2013 No data found. Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cullill 9.40 $330.00 - 8.00 $300.00 ■ 7.65 1111J .6.00 $270.00 _ 4.47 $240.00 4.00 iI= $210.00 ■ rc 2.00 $,80.00 _ 0.00 $,50.00 ■ -2.00 $120.00 _ -4.00 ■ $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 6/11 6/13 • Intermediate Core -2.23 (90) -1.62 (90) 0.23 (76) 3.37 (44) 3.65 (47) 5.01 (49) 5.44 (39) • Barclays Intermediate Aggregate Index -1.78 (50) -1.46 (82) -0.12 (90) 2.54 (89) 3.03 (82) 4.42 (79) 4.76 (84) - Intermediate Core Median -1.78 -1.00 0.75 3.20 3.58 4.98 5.31 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Intermediate Core 0.21 (84) 0.42 (46) 1.88 (38) 1.73 (17) 1.06 (58) 1.11 (45) Barclays Intermediate Aggregate Index 0.15 (90) 0.18 (86) 1.36 (85) 1.32 (69) 0.66 (80) 0.91 (77) IM U.S.Intermediate Duration(SA+CF)Median 0.33 0.40 1.74 1.46 1.16 1.07 TILE 53 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of June 30,2013 `Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 8.8 0.00 8.0- over Performance 0 9 o 09ou 25.00 0 ° s.o- ° 8 0 0 8 ° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 50.00 ▪4.0- g 75.00 ■ ° ° ° ° ° 0 ° ° 0 ° 0 0 0 °jmn X Under w 0 0 Performance re I I I I I I I I I I I I I 100.00 I r 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 8.8 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 Barclays Intermediate Aggregate Index(%) Total 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Period Count Count Count Count • Intermediate Core 20 0 (0%) 18(90%) 2(10%) 0(0%) ▪ Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0 (0%) 3(15%) 13(65%) 4(20%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.74 - 5.54 - 3.60 ■ • 5.40- • ems`, ems`- 7 3.30 ■ ;5.10- *al 11 re re 3.00 - • 4.80■ • I I I 1 I I I I I I I I 2.30 2.40 2.50 2.60 2.70 2.80 2.90 2.95 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.48 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 3.65 2.86 • Intermediate Core 5.44 3.02 • Barclays Intermediate Aggregate Index 3.03 2.33 • Barclays Intermediate Aggregate Index 4.76 2.62 Median 3.58 2.63 Median 5.31 3.37 Historical Statistics-3 Years ■ Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.53 116.65 109.54 0.32 1.14 1.50 1.10 1.41 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.39 1.00 1.18 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.92 110.33 101.22 0.45 0.71 1.60 1.04 1.79 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.52 1.00 1.43 THE 54 ( , BOG DAHN \~� GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv(TGBAX) 20 Quarters Rolling Periods As of June 30,2013 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 25.0 V AYC 91 c N 50.0 a w c K 75.0— 100.0 i i 1 I I I I I I I I i I I I I — I I 12/02 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 6/12 12/12 6/13 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Templeton GI Bond;Adv(TGBAX) 43 41 (95%) 2 (5%) 0 (0%) 0 (0%) Citigroup World Government Bond 43 17 (40%) 23 (53%) 1 (2%) 2 (5%) Manager composite returns used for chart population. 55 ( ) THE BOGDAHN ♦~� GROUP. Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending June 30,2013 Relative Performance 9.0 8.0- 7.0- 6.0- 5.0- 4.0- 3.0- vv 2.0- i li 1.0- 1. iI .I 11 d 1 .11 1 II 1 11 I i _ i _ I I iI . I 111 I I II ' •'I' III �II! II 11� �'' 'II I 1.1 1 I ' 11 - rill 1 I II 11 1 -2.0- -3.0- -4.0- -5.0- -6.0- -7.0- -8.0-ii_ i Tr 1 r 1 1 1 r 1 r 1 r 1 r 1 1 1 1 rTr 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 11/12 6/13 — Cumulative Annualized Over/Under Relative Performance . Over/Under Performance Calculation based on monthly periodicity. TILE 56 Var BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of June 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To June 30,2013 No data found. Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 13.66 _1 $440.00 11.00 $400.00 ■ • 6.52 8.00 • • $360.00 ■ • $320.00 - 5.00 • MP MI $280.00 ■ 2.00 ■ $240.00 s5.31 re -1.00 • $200.00 l 1p -4.00 • $160.00 - �/ -7.00 $120.00 - " -10.00 - $80.00 - 1 I I I I I I I 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 6/13 •Templeton GI Bond;Adv(TGBAX) -2.73 (34) 2.42 (7) 7.95 (3) 3.45 (35) 6.84 (15) 8.67 (13) 9.63 (1) •Citigroup VVorld Government Bond -2.97 (44) -7.26 (98) -4.49 (100) -0.98 (94) 2.72 (77) 2.80 (97) 3.04 (83) - Templeton GI Bond;Adv(TGBAX) Median -3.23 -1.70 1.06 1.93 3.79 5.11 4.48 - Citigroup World Government Bond Comparative Performance Er- 1 Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Dec-2011 Templeton GI Bond;Adv(TGBAX) 1.41 (8) 3.83 (4) 5.40 (13) -0.99 (97) 7.20 (5) 1.23 (37) Citigroup VVorld Government Bond -2.77 (99) -1.70 (100) 2.99 (75) 0.92 (37) -0.51 (100) -0.13 (86) IM Global Fixed Income(MF)Median -0.45 1.11 3.43 0.58 2.37 0.86 ILE 57 ("0„,TBOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of June 30,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 15.1 0.00 0 0 0 8 8 0 0 0 0 0 0 0 Over m 14.0 Performance °a ° ° ° Kt„ 0 0 0 0 0 12.0 V _ 25.00 0 0 0 0 0 0 0 ° 0 .10.0 • w 50.00 0 0 e 8.0 0. m X 0 g 75.00 ■� J� 0 0 0 0 0 0 0 6.0 . V. 4.0 Under 100 Under I 1 I I 1 I g. 2.0 Performance 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 6/13 1 1 2.0 4.0 6.0 8.0 ,0.0 12.0 14.0 15.1 Total Period 5-25 25-Median Median-75 75-95 Citigroup Wotltl Government Bond(%) Count Count Count Count •Templeton GI Bond;Adv(TGBAX) 20 16(80%) 4(20%) 0 (0%) 0(0%) • Over Performance + Earliest Date X Latest Date •Citigroup VVorld Government Bond 20 8(40%) 3(15%) 1 (5%) 8(40%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 11.05 - 00 • • e 9.00 e-5.60 4.20 6.00 re re 2.80 0 3.00 0 I I I I I I I I I I I I I I I I 1 5.60 6.00 6.40 6.80 7.20 7.60 8.00 8.40 8.80 9.20 9.60 9.94 6.90 7.20 7.50 7.80 8.10 8.40 8.70 9.00 9.30 9.60 9.90 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Templeton GI Bond;Adv(TGBAX) 6.84 9.31 •Templeton GI Bond;Adv(TGBAX) 9.63 9.56 • Citigroup VVorld Government Bond 2.72 5.87 •Citigroup VVorld Government Bond 3.04 7.42 Median 3.79 6.05 Median 4.48 7.21 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) 8.13 134.18 84.31 4.90 0.52 0.75 0.80 6.38 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.47 1.00 3.99 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) 8.89 124.60 54.65 7.97 0.72 0.98 0.61 6.08 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.40 1.00 4.79 THE 58 (: ) BOGDAHN ♦~� GROUP. Page Intentionally Left Blank 59 Benchmark Historical Hybrid Compositions Total Fund As of June 30,2013 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 MSCI EAFE Index 15.00 Russell 3000 Index 100.00 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(%) Total Domestic Equity Policy Nov-2000 Allocation Mandate Weight(%) Barclays Aggregate Index 100.00 Jun-2003 MSCI US Broad Market Index 100.00 Sep-2006 Barclays Intermediate Aggregate Index 100.00 Feb-2013 CRSP U.S.Total Market TR Index 100.00 THE BOGDAHN 60 l✓ GROUP. Disclosures Total Fund As of June 30,2013 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 61 l� BOGDAHN GROUP The Bogdahn Group Your Service Team Contact Information Nick Rowlands Dave West Department: Performance Measurement Department: Consultant Team _Pi Titl� Performance Analy � i Title: Senior Consu II Direct Phone: 407-520-5355 -- Direct Phone: 863-904-0858 Email: NickR @boRdahnRroup.com Email: DaveW @boRdahnRroup.com John Thinnes Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road,Suite 600 _M� Orlando,Florida 32811 MIL Pho 866-240-7932 Direct Phone: 863-904-0846 Service Team Group Email: ServiceTeam003@bogdahngroup.com JohnT@bogdahngroup.com -- BOGDAHN ♦--- GROUP. 62 Compliance Checklist Total Fund Winter Springs GE As of June 30,2013 Total Fund Compliance: Yes No NIA 1.The Total Plan return equaled or exceeded the 8%actuarial earnings assumption over the trailing three and five year periods. ✓ 2.The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3.The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: Yes No NIA 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 NIA 1.Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2.Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3.All separately managed fixed income investments have a minimum rating of investment grade or higher.* ✓ *Less than 1.0%rated below investment grade as reported by the manager. Vanguard RBC Global Galliard TIPS Manager Compliance: Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ ✓ Manager Compliance: T Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ 63 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 THE 64 BOGDAHN �J GROUP. Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result,this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable,but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities,investment consulting,or investment management services. Additional information included in this document may contain data provided by from index databases,public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document,advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses.All information provided by S&P Indices is impersonal and is not tailored to the needs of any person,entity or group of persons.Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance.Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI,Inc. Copyright MSCI,2012. Unpublished. All Rights Reserved. This information may only be used for your internal use,may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an as is"basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI,any of its affiliates or any other person involved in or related to compiling,computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof,and MSCI,its affiliates and each such other person hereby expressly disclaim all warranties(including,without limitation,all warranties of originality,accuracy,completeness,timeliness,non-infringement,merchantability and fitness for a particular purpose)with respect to this information. Without limiting any of the foregoing,in no event shall MSCI,any of its affiliates or any other person involved in or related to compiling,computing or creating this information have any liability for any direct,indirect, special,incidental,punitive,consequential or any other damages(including,without limitation,lost profits)even if notified of,or if it might otherwise have anticipated,the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use,disclosure,copying,dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein:(1)is proprietary to Morningstar and/or its content providers;(2)may not be copied,adapted or distributed;and(3)is not warranted to be accurate,complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information,except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 65 /CTHE A,BOGDAHN GROUP. THE r°° ) BOGDAHN GROUP® simplifPing your im,estinent and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Milwaukee Cleveland Dallas Houston