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HomeMy WebLinkAbout2013 12 05 Regular 600 3rd Quarter Investment Performance Report BOARD OF TRUSTEES AGENDA ITEM Informational ITEM 600 Consent Public Hearings Regular X December 5, 2013 Regular Meeting REQUEST: 3rd Quarter Investment Performance Report (Ending September 2013). Winter Springs General Employees General Plan and Trust Investment Performance Review 3rd Quarter 2013 THE BOGDAHN GROUP® W W W.B O G D A H N G R O U P.C O M cimplif Diu;Dour in�estureut rnrd fiduciary deeisions The Market Environment Plan Investment Performance Quarter Ended: September 2013 Portfolio Attribution (Reference pages 21-24 of The Bogdahn September 2013 Report) If only Washington could get out of the way. The markets continued their rapid acceleration higher in the third quarter, which is almost amazing when one considers the proliferation of high profile headlines that littered the front pages of newspapers, all of which had the potential to shake investor confidence. From a potential military strike on Syria, to cooperation with Russia on a diplomatic solution regarding Syrian President Bashar al Assad's chemical weapons arsenal, to Larry Summers being usurped by Janet Yellen as the Presidential nominee for incoming Fed Chair, to yet another debt crisis debacle between the House and Senate. Each of these issues in isolation could have dragged down markets, yet none of them did. Thankfully, the markets were buoyed by some positive news during the period, which included continued strength in economic growth figures. Initial unemployment claims dropped to multiyear lows early in September despite worries that the data might have been manipulated for political gains. Later revisions proved these fears unfounded. The unemployment rate continued to decline slightly, falling from 7.4%to 7.3% in August. This, combined with the continued resurgence in the U.S. housing market, has led to increases in consumer confidence and spending. Given that 70% of U.S. GDP comes in the form of consumer spending, any increase in home prices results in a material improvement in consumer sentiment and their perceived "wealth effect". The resultant increase in consumer spending has a trickle-down effect on home prices and GDP growth. Part of what drove U.S. growth was a continued improvement in domestic manufacturing, which continues to benefit from increased exports on increased demand from Europe and China, as well as lower cost inputs due to the impact of fracking and the resulting decline in natural gas prices. Finally, U.S. stock markets received an unexpected surprise during the period when the Federal Reserve, led by Ben Bernanke, decided not to end the bond purchase stimulus program. • Plan assets earned $4,431,532 from investments for the fiscal year to date, of which $685,224 came from interest income and $3,746,308 from market appreciation. • Active international equity and international fixed income underperformed during the quarter, but have been accretive to performance over the last fiscal year. The plan went passive in the domestic equity space earlier this year. Investment diversification to Real Estate and global bonds continued to influence results positively. Both allocations had solid returns for the quarter and fiscal year relative to their domestic fixed income counterpart. What helped? • On an absolute basis, equity markets and real estate returns drove returns for the quarter and the fiscal year. International equity markets outperformed domestic equity markets. • The program continues to receive a performance boost from the manager allocations to Real Estate which continues to deliver strong returns relative to domestic fixed income. • The RBC International equity portfolio and the Templeton Global Bond portfolio both had a slight pull back during the quarter relative to their peers and benchmark. However, longer time frames are still very successful. . What hurt? • Domestic fixed income although slightly positive for the quarter was the weakest performing asset class in the portfolio. On a fiscal year basis domestic fixed income returned -0.64%. Recommendations/Actions: • There are no change/addition recommendations at this time. I'1 ft 1 l_ BOGDAHN GROUP 3rd Quarter 2013 Market Environment [Hk: 2 C BOGDAHN GROUP. The Market Environment Major Market Index Performance As of September 30,2013 • It was another great period for domestic equities as all domestic indexes Quarter Performance posted solid gains during the third quarter. Market returns were primarily MSCI ACWXUS -WIIIm. 10.2% driven by continued strength in corporate profits, lower unemployment MSCI EAFE figures, and a continued rebound in housing. However, GDP growth MSCI Emerg Mkts 5.9% 11.6% remained tepid, since revised third quarter figures revealed slow year-over- _ year GDP growth of approximately 1.5%. Regardless, investors continued to S&P 500 = JEM 5.2% flock to U.S. equities given limited alternatives elsewhere. U.S. interest rates Russell 3000 6.3% continued to provide low yields by comparison. Russell 1000 6.0% Russell MidCap 7.7% • Small caps outperformed mid and large caps during the quarter and growth Russell 2000 10.2% stocks outperformed value across all capitalizations on the domestic equity - front. The one year performance numbers as of September 30, 2013 Barclays US Agg 0.6% represented solid double-digit returns, with the blue chip led the S&P 500 Barclays US Govt - 0.1% Index up 19.3%and the small cap Russell 2000 Index up a strong 30.1%. Barclays US TIPS 0.7% Barclays MBS 1.0% • International stocks roared back during the third quarter outpacing domestic Barclays Corp IG 0.8% equities, though the month-to-month performance was extremely volatile. - Currency moves, particularly in Europe, comprised a good portion of the 3-Month T-Bill o.o°r° appreciation for USD based investors. The MSCI EM Index lagged both the MSCI EAFE and MSCI ACWxUS Indexes for the quarter but was 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% comfortably in positive territory. Year to date, there was a large disparity 1-Year Performance between developed equities (with returns in the mid teens) and emerging equities (with mostly negative returns). MSCI AcwXus 17. °r° MSCI EAFE 24.3% • After two consecutive quarters of negative returns, the U.S. bond market, MSCI Emerg Mkts - 1.3% represented by the Barclays Aggregate Bond Index, rose 0.6% in the third _ quarter of 2013. The positive performance was broad-based as all key S&P soo 19.3% sectors moved higher. Leading the way was Mortgage Backed Securities Russell 3000 21.6% (MBS),which rose 1.0%. The strong rally in MBS narrowly exceeded a solid Russell 1000 20.9% 0.8% return for investment grade credit. Despite the improved tone of bond Russell MidCap 27.9% markets in the third quarter, year-to-date and one-year returns remained in Russell 2000 30.1% negative territory. _ Barclays US Agg 1.7% Barclays US Govt -2.0% Barclays US TIPS -6.1% Barclays MBS -1.2% Barclays Corp IG I1.6% 3-Month T-Bill 0.1% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Source:Investment Metrics THE. 3 c BOGDAHN GROUP. The Market Environment Domestic Equity Style Index Performance As of September 30,2013 • It was a bit of a rollercoaster ride during the third quarter as markets were up Quarter Performance - Russell Style Series sharply in July and followed with a sell off in August before rebounding again 3000 Value 4.2% in September. 3000 Index 6.3% 3000 Growth 8.5% • During the quarter, growth outpaced value across all capitalizations with - greater absolute returns with each progressively smaller capitalization - segment. This is fairly typical of the middle stages of a prolonged economic 1000 Value 3.9°r° recovery cycle. 1000 Index 6.0% 1000 Growth 8.1% • Economic data continues to be mixed. Job growth continues to be solid with 169,000 net new jobs revealed in the August jobs report, which brought MidCap Value III 5.9% unemployment down to 7.3%. Housing continued to improve, but recent data MidCap Index 7.7°r° suggests recovery could be threatened by higher interest rates. MidCap Growth 9.3% • Corporate profits drove markets to new highs. After-tax corporate profits in - the first quarter of 2013 were 36%, above 2006 profits. This is the primary 2000 Value 7.6% reason why the stock market has accelerated despite stop-and-go economic 2000 Index 10.2% growth. 2000 Growth 12.8% • Price-to-earnings (P/E) multiples continued to expand to the point where 0.0% 2.o°%° 4.0% 6.0% 8.0% 10 o°%° 12.0% 14.0% most areas of the domestic market were priced fair-to-rich. P/E expansion 1-Year Performance - Russell Style Series has been the primary source of equity price increases domestically. Through August 2013, 75% of the total return of the S&P 500 was attributable to 3000 Value , 22.7°r° multiple expansion as opposed to earnings growth. 3000 Index 21.6°/ 3000 Growth 20.3% 1000 Value 22. % 1000 Index 20.9% 1000 Growth 19.3% MidCap Value 27.:% MidCap Index 27 9% MidCap Growth 27.'% 2000 Value 27.0'/0 2000 Index 30.1% 2000 Growth 33.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Source:Investment Metrics T 4 �� Till, BOGDAHN GROUP. The Market Environment GICS Sector Performance & (Sector Weight) As of September 30,2013 Russell 1000 ❑Quarter ❑1-Year • The strongest sectors during the third quarter were those most highly correlated to economic growth, namely Consumer Discretionary, Health Consumer Disc(13.3%) 8.8% Care, Industrials, Materials, and Information Technology. "Defensive" 34.6% sectors, such as Consumer Staples, Telecom Services, and Utilities, all Consumer Staples(9.1%) 1.1% 1 15.0% lagged. This is consistent with what has been witnessed at similar junctures - 6.2% of previous economic cycles. Energy(9.8%) I 13.5% Financials(17.0%) 2.7% • A similar dynamic was evident in small caps, but the effect was far less 1 2 .7°r° pronounced. Traditional "growth" sectors outperformed as they did in large Health Care(12.5%) - 7.3% caps (with Consumer Discretionary being the exception by underperfoming 29.2% the index as a whole), but unlike their large cap brethren, all sectors Industrials(11.1%) - 9.3% 1 31.1% exhibited a positive return for the quarter.All but one sector(Utilities)was up 8.2% at least 5.7%. Info Technology(17.9%) 9.0% Materials(3.7%) 9.9% • Interestingly, Health Care stocks dominated the top ten best performers and 16.6% top ten worst performers of the Russell 2000 Index for the quarter. All ten of Telecom Services(2.3%) -3.3% the "winners" more than doubled in the three-month period,while the "losers" 1.2% were down 60-70%. Utilities(3.2%) I 0.4% I 8.8% • Facebook was the top large cap performer for the quarter (+102%) as -10.0% 0.0% 10.0% 20.0 30 o°%° 40.0% investors gained confidence in the company's ability to profit from mobile Russell 2000 ❑Quarter 01-Year advertising. Tesla and Netflix continued their meteoric rise during the quarter and are up 560%and 468%,respectively, for the one-year period. Consumer Disc(13.9%) s.z°%° 3 .2% • Clothing retailers made up three of the bottom ten performers for the Russell Consumer Staples(4.0%) 1 13.0% 36. /o 1000 Index, with J.C. Penney down the most for both the quarter(-48%) and Energy(5.6%) 13.3% year-to-date (-64%) periods. The other two poor performers were American 21.8% Eagle Outfitters and Abercrombie&Fitch. Financials(22.4%) 7 5'7% I 23.1% Health Care(13.0%) 17.3% 31.3% Industrials(14.5%) 12.4% 141.2% Info Technology(18.1%) 14.3% I 37.4% Materials(4.9%) 10.1% 1 18.2% Telecom Services(0.8%) 11.4% 16.4% Utilities(3.0%) 1.5% I 8.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Source:Morningstar Direct till: 5 r BOGDAHN '\ GROUP. The Market Environment Top 10 Index Weights& Quarterly Performance for the Russell 1000 &2000 As of September 30,2013 op 10 Weighted Stocks ■ Top 10 Weighted Stocks -ussell1000 I Weight 1-Qtr 1-Year (Sector ■ 'ussell2000 Weight 1-Qtr 1-Year Sector Return Return '. 'Return' Return Apple Inc 2.48% 21.0% -26.8% Information Technology CoStar Group, Inc. 0.29% 30.1% 105.9% Information Technology Exxon Mobil Corporation 2.44% -4.1% -3.4% Energy CommVault Systems, Inc. 0.26% 15.9% 49.9% Information Technology Microsoft Corporation 1.60% -3.0% 15.3% Information Technology AthenaHealth, Inc. 0.25% 28.2% 18.3% Health Care Johnson &Johnson 1.47% 1.7% 29.9% Health Care Ultimate Software Group, Inc. 0.25% 25.7% 44.4% Information Technology General Electric Co 1.46% 3.8% 8.7% Industrials Acuity Brands Inc 0.24% 22.1% 46.5% Industrials Chevron Corp 1.41% 3.5% 7.7% Energy Firstmerit Corp 0.24% 9.2% 53.3% Financials Google, Inc.Class A 1.38% -0.5% 16.1% Information Technology Middleby Corporation 0.23% 22.8% 80.7% Industrials Procter&Gamble Co 1.28% -1.1% 12.5% Consumer Staples Chart Industries, Inc. 0.22% 30.8% 66.6% Industrials Wells Fargo&Co 1.21% 0.8% 23.1% Financials Prosperity Bancshares, Inc. 0.22% 19.8% 47.7% Financials Berkshire Hathaway Inc Class B 1.21% 1.4% 28.7% Financials Brunswick Corporation 0.22% 24.9% 76.7% Consumer Discretionary Top 10 Performing Stocks(by Quarter) 11.11M a. Top 10 Performing Stocks(by Quarter) Return r 1-Year rn 1-Qtr 1-Year -'Retu Return Sector NW ■W p= p=S=r Facebook Inc Class A 0.28% 101.9% 131.9% Information Technology Rockwell Medical Inc 0.01% 215.8% 39.5% Health Care Tesla Motors, Inc. 0.07% 80.1% 560.4% Consumer Discretionary Biocryst Pharmaceuticals 0.00% 183.9% 3.8% Health Care Incyte Corp Ltd 0.02% 73.4% 111.4% Health Care MAKO Surgical Corporation 0.04% 144.9% 69.5% Health Care Nu Skin Enterprises, Inc.Class A 0.03% 57.2% 151.6% Consumer Staples Leap Wireless International, Inc. 0.05% 134.8% 132.0% Telecommunication Services Herbalife, Ltd. 0.03% 55.3% 51.0% Consumer Staples Celldex Therapeutics, Inc. 0.11% 127.0% N/A Health Care Cimarex Energy Company 0.04% 48.6% 65.9% Energy Geron Corporation 0.01% 123.3% 95.9% Health Care Goodyear Tire&Rubber Co 0.03% 46.7% 84.2% Consumer Discretionary Pacific Biosciences of California, Inc. 0.01% 118.2% 201.6% Health Care Energen Corp 0.03% 46.5% 47.4% Energy NPS Pharmaceuticals Inc 0.13% 110.5% N/A Health Care Netflix, Inc. 0.08% 46.5% 468.0% Consumer Discretionary Astex Pharmaceuticals Inc 0.03% 106.6% 175.6% Health Care Wendy's Co Class A 0.01% 46.4% 92.9% Consumer Discretionary Alnylam Pharmaceuticals, Inc. 0.17% 106.5% 240.7% Health Care Bottom 10 Performing Stocks(by Quarter) IIM III Bottom 10 Performing Stocks(by Quarter) Russell 1000 Weight 1-Qtr 1-Year Sector Russell 2000 Weight 1-Qtr 1-Year Sector Return Return Return Return J.C.Penney Co Inc 0.01% -48.4% -63.8% Consumer Discretionary GTx, Inc. 0.01% -69.3% -55.8% Health Care Intrepid Potash, Inc. 0.00% -32.9% -38.4% Materials Tower Group International Ltd 0.07% -65.5% -62.4% Financials Intuitive Surgical, Inc. 0.10% -25.7% -24.1% Health Care GSE Holding Inc 0.00% -64.1% -73.5% Materials MBIA Inc 0.01% -23.1% 1.0% Financials Achillion Pharmaceuticals, Inc. 0.04% -63.1% -71.0% Health Care American Eagle Outfitters 0.02% -22.7% -31.9% Consumer Discretionary Chemocentryx Inc 0.01% -60.7% -52.2% Health Care Broadcom Corporation 0.10% -22.7% -23.7% Information Technology Vical Incorporated 0.01% -60.1% -71.1% Health Care Hatteras Financial Corporation 0.01% -21.9% -26.0% Financials Jakks Pacific, Inc. 0.01% -60.0% -68.4% Consumer Discretionary Abercrombie&Fitch Co Class A 0.02% -21.4% 6.1% Consumer Discretionary L&L Energy, Inc. 0.00% -59.7% -59.7% Energy Mosaic Co 0.08% -19.6% -23.9% Materials Model N Inc 0.01% -58.0% -58.0% Information Technology SeaWorld Entertainment Inc 0.00% -18.7% -18.7% Consumer Discretionary Body Central Corp 0.01% -54.2% -41.6% Consumer Discretionary Source:Morningstar Direct M THE 6 [r BOGDAHN GROUP. The Market Environment International and Regional Market Index Performance (Country Count) As of September 30,2013 • Equity markets across the globe appeared somewhat bipolar during the Quarter Performance o USD o Local Currency quarter-rising strongly in July on continued improving Euro Zone news, - 1 10.2% then selling off in August on tensions in the Middle East, and finally rocketing AC World x US(43) 17.1% in September as the U.S. Fed halted plans for tapering. 11.4% WORLD x US(23) 7.4% • Peripheral European equities bounced back strongly after being down 11.6% modestly in the second quarter concurrent with the region's emergence from EAFE(22) 7.6% Y q 9 9 13.7% recession. In particular, Greece, Spain, and Italy led the charge with equities Europe(16) up 33.6%,25.8%,and 19.6%, respectively. 8.2% Pacific(5) 8.0% • The emerging market index significantly underperformed developed equities 6.6% (5.9% vs. 11.6%), but within emerging markets there were pockets of strong Emerging Mkt(21) 15.9% outperformance, namely China and Russia, which were up 12.2% and _ 15.8% 13.7%, respectively. By contrast, Indian equities were down 5.3% in USD r 9.5% EM Europe(5) ■ terms for the quarter, hurt by a depreciating rupee and continued declining 9.4% growth expectations. EM Asia(8) IMP 10.1% 18.7% • Currency moves overall were relatively benign for emerging market equities, EM Latin Amer(5) 11. 16.8% but, in developed markets, U.S. investors overseas benefitted tremendously. 15.8% The largest currency moves came from appreciations in the euro and pound 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% as the region showed the first signs of economic expansion since the Great Recession albeit miniscule. 1-Year Performance oUSD ❑Local Currency AC World x US(44) 17.0% • In developed markets,there was moderate disparity among returns by sector 1 21.5% during the quarter. In general, cyclical sectors turned in the highest returns WORLD x US(23) M 22.0% (ranging from 10-18%)while Consumer Staples and Health Care lagged (up I 26.6/o 6.8%and 5.9%, respectively) the overall MSCI EAFE Index return. 24.3% EAFE(22) I 8.9% • Energy stocks led the emerging equity benchmark at up 10.8%, followed Europe(16) 25.0% closely by Materials, Information Technology, and Consumer Discretionary. I 21.3% Consumer Staples was the only sector to end the quarter in negative 23.5% Pacific(5) territory, at-0.2%. 45.2% Emerging Mkt(21) 1.3% • In general, small capitalization international stocks outperformed large caps 6.2°%o and value outperformed growth for the three-month period. EM Europe(5) 1 0.8% I 11.8% EM Asia(8) 3.8% I 4.9% EM Latin Amer(5) �6'8% 7.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Source:MSCI Global Index Monitor, Returns are gross ilmeIN THE 7 r BOGDAHN GROUP. The Market Environment U.S. Dollar International Index Attribution &Country Detail As of September 30,2013 MSCI -EAFE Sector Weight Quarter Return 1-Year Return MSCI-EAFE MSCI-ACWIxUS 1-Ye. Consumer Discretionary 11.8% 13.1% 44.4% /u Country Weight Weight Return Return United Kingdom 21.7% 15.6% 12.1% 17.1% Consumer Staples 11.2% 6.8% 16.9% Japan 21.6% 15.5% 6.7% 31.7% Energy 6.9% 10.7% 4.7% France 9.8% 7.0% 15.5% 33.4% Switzerland 9.1% 6.5% 9.5% 32.2% Financials 25.4% 12.7% 31.0% Germany 8.7% 6.3% 12.7% 26.8% Health Care 10.0% 5.9% 22.6% Australia 8.0% 5.7% 12.0% 12.5% Industrials 13.0% 14.3% 29.1% Sweden 3.3% 2.3% 15.2% 25.9% Spain 3.2% 2.3% 25.8% 30.4% Information Technology 4.3% 10.1% 29.1% Hong Kong 3.0% 2.1% 8.9% 13.6% Materials 8.2% 14.9% 9.4% Netherlands 2.7% 1.9% 14.9% 32.8% Telecommunication Services 5.5% 17.7% 25.5% Italy 2.1% 1.5% 19.8% 19.8% Singapore 1.6% 1.1% 4.7% 4.2% Utilities 3.7% 9.5% 14.6% Belgium 1.2% 0.8% 13.6% 26.6% Total 100.0% mili. i 2, Denmark 1.1% 0.8% 13.7% 18.0% Finland 0.9% 0.6% 26.6% 49.7% MSCI -ACWIxUS Sector Weight Norway 0.8% 0.6% 9.2% 5.4% Consumer Discretionary 10.7% 12.3% 36.3% Israel 0.4% 0.3% 2.5% 1.2% ry Ireland 0.3% 0.2% 17.0% 31.1% Consumer Staples 10.2% 5.4% 14.8% Austria 0.3% 0.2% 19.1% 31.7% Energy 9.3% 10.4% 0.5% Portugal 0.2% 0.1% 10.8% 22.5% New Zealand 0.1% 0.1% 17.6% 22.4% Financials 26.6% 10.4% 22.8% Greece 0.0% 0.0% 33.6% 77.5% Health Care 7.7% 6.0% 22.7% Total EAFE Countri. 1% 71.7% u Industrials 11.1% 13.0% 24.7% Canada 7.2% 9.0% 3.0% Total Developed Countries 78.9% Information Technology 6.4% 9.5% 19.8% China 4.1% 12.3% 13.0% Materials 8.8% 12.5% -3.7% Korea 3.4% 14.9% 5.0% Telecommunication Services 5.7% 13.0% 16.3% Brazil 2.5% 8.4% -7.7% Taiwan 2.4% 3.8% 6.8% Utilities 3.4% 7.5% 9.3% South Africa 1.6% 8.9% -2.3% Total 100.0% , Russia 1.3% 13.7% 3.5% India 1.2% -5.3% -12.4% MSCI -Emerging Mkt Sector Weight Mexico 1.1% -1.7% -2.1% Consumer Discretionary 8.8% 9.1% 7.5% Malaysia 0.8% 3.0% 5.9% Thailand 0.5% -5.1% 1.2% Consumer Staples 8.8% -0.2% 5.4% Indonesia 0.5% -23.9% -18.4% Energy 11.9% 10.8% -7.0% Chile 0.4% -5.5% -16.1% Financials 27.0% 3.4% 4.8% Poland 0.4% 17.9% 11.5% Turkey 0.4% -6.7% 1.3% Health Care 1.6% 2.3% 9.6% Colombia 0.3% 9.4% -0.1% Industrials 6.2% 7.2% 1.6% Philippines 0.2% -5.2% 15.0% Information Technology 15.1% 9.1% 11.7% Peru 0.1% 3.7°0% -26.8%Czech Republic 0.1% 13.3%% -11.9/u Materials 9.8% 9.1% -13.6% Egypt 0.0% 12.6% -19.1% Telecommunication Services 7.6% 3.2% -0.5% Hungary 0.0% -4.9% -1.0% Utilities 3.2% 1.3% Morocco 0.0% 1.1% -3.4% 5.7% Total Emerging Countries 21.1% 1.3% Total #100.0% W5.9% 1.3% Total ACWIxUS Countries 100.0% 1.11 17.0% Source:MSCI Global Index Monitor, Returns are gross oft\ THE 8 [ BOGDAHN ``� GROUP. The Market Environment Domestic Bond Sector& Broad/Global Bond Market Performance As of September 30,2013 • After two consecutive quarters of negative returns, the U.S. bond market, Quarter Performance represented by the Barclays Aggregate Bond Index, rose 0.6% in the third quarter. Bond markets remained volatile as market participants focused on AAA 0.5% the possibility of`tapering' in the Federal Reserve's quantitative easing (QE) AA 0.5% program. The market was modestly positive in July, rising 0.2%, but drifted lower in August to end the month with a 0.5% loss. On September 18th, the A o.s°r° Federal Open Market Committee (FOMC)surprised markets when it decided Baa 0.8% to maintain its current level of QE. The news surprised markets and led to a High Yield 2.3% sharp rise in all sectors of the domestic bond market pushing returns for the Treasury 0.1% quarter into positive territory. -- Mortgage 1.0% • During the third quarter, returns for all investment grade sectors were Corporate IG - 0.8% positive. MBS was the best performing sector followed closely by TIPS 0.7% investment grade corporate bonds, which posted a return of 0.8%. U.S. - Treasuries was the worst performing sector returning 0.1%. After - plummeting 7.1% in the second quarter, the TIPS market rebounded nicely Aggregate 0.6% and ended the third quarter up 0.7%. Intermediate Agg 0.8% Global Agg x US 4.4% • After reversing course in the second quarter, the trend of low quality bonds Multiverse 2.8% outperforming higher quality securities continued as investment returns for the third quarter increased moving down the investment grade credit 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% spectrum. The only exception to the trend was A-rated bonds, which 1-Year Performance exceeded the Baa-rated credit tier by five basis points. AAA -1.6% _ • The shorter-duration Barclays Intermediate Aggregate Bond Index AA -1.9% outperformed the longer-duration, broad market Aggregate Index by 20 basis A -1.9% points in the third quarter. This was third quarter in a row where the Intermediate Index has exceeded the broad market leading to an excess Baa 1.6°r° 7.1°r° return of 100 basis points over the past 12 months. High Yield Treasury -2.1% • For the fifth consecutive quarter, investment grade credits lagged their high Mortgage -1.2% yield counterparts (0.8% versus 2.3%). The continued demand for lower - quality bonds has resulted in securities rated below investment grade Corporate IG 1.6% outperforming investment grade credit by an astonishing 870 basis points TIPS -6.1% (7.1%versus -1.6%)on a trailing one year basis. Aggregate -1.7% • Returns for international bonds, represented by the Barclays Global - Aggregate ex U.S. Index, easily outpaced domestic bonds (4.4% versus Intermediate Agg 0.7% 0.6%). Despite the strong quarter, the performance of international bonds Global Agg x US -3.4% trailed domestic markets over the past 12 months by 170 basis points. Multiverse -2.2% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source:Barclays Capital Live THE 9 [� BOGDAHN `� GROUP. The Market Environment Market Rate &Yield Curve Comparison As of September 30,2013 1-Year Trailing Market Rates • Volatility in domestic bonds remained elevated as the market, represented 3.50 by the Barclays Aggregate Bond Index, reversed its recent downtrend and Fed Funds Rate - TED Spread 3-Month Libor posted a 0.6% gain. Investor attention continued to be focused on the 3.00 - BAA OAS 10yr Treasury 10yr TIPS prospects of a reduction in the Federal Reserve's QE program. Bond markets stabilized in July after weak May and June results only to drift lower 2.50 in the month of August. On September 18th, the FOMC chose to continue their $85 billion of monthly bond purchases. The Committee's actions 2.00 surprised many market participants who were anticipating the level of purchases would be lowered at the meeting. The surprise news served to lift 1.50 bond markets through the remainder of the third quarter. Once markets digested the FOMC news, attention turned to yet another fiscal showdown in 1.00 - Washington. Congress and the President face an October 1 deadline on a new federal budget and an October 17 deadline to extend the federal debt 0.50 limit. Concern over the lack of progress on both fronts provided yet another tailwind to bond prices late in the quarter. 0.00 • Treasury rates were mostly unchanged during the quarter with the most -0.50 notable movement coming in the longer-dated maturities where the ten- and 30-year Treasuries rose 12 and 17 basis points, respectively. One benefit to 1.00 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 investors of the recent rise in yields has been the steepening of the yield curve. This allows investors to extend maturities and realize a sizable Treasury Yield Curve increase in yield. The rise in "spread"between key points on the yield curve 4.00 is shown below. 12/30/2011 —12/31/2012 ■6/30/2013 9/30/2013 3.50 - 2-5 Year U.S.Treasury +54 basis points • 2- 10 Year U.S.Treasury +69 basis points 3.00 - • For investors in domestic bonds, 2013 has been a ride characterized by 2.50 5 sudden declines in the market and high volatility. One bright spot of the markets moving lower is it has resulted in higher yields relative to those in 2011 and 2012. 2.00 ♦ •/ • Even though markets now offer yields higher than those of the past several 1.50 • • quarters, the overall level of interest rate risk continues to be higher than the potential return. Going forward, we believe volatility will likely persist and the 1.00 overall direction of the market will be linked to central bank actions. 0.50 - 0.00 -—* —' 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: US Department of Treasury, FRED(Federal Reserve of St. Louis) oftlk THE 10 [� BOGDAHN GROUP. Asset Allocation Summary Total Fund As of September 30,2013 Asset Allocation By Segment as of Asset Allocation By Segment as of June 30,2013 :$30,237,076 September 30,2013:$31,810,974 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 15,836,585 52.4 • Domestic Equity 16,832,629 52.9 • International Equity 4,514,315 14.9 • International Equity 4,914,496 15.4 • Fixed Income 5,607,938 18.5 • Fixed Income 5,639,683 17.7 Global Fixed Income 985,496 3.3 Global Fixed Income 986,260 3.1 • Real Estate 2,629,180 8.7 • Real Estate 2,708,272 8.5 • Cash Equivalent 663,561 2.2 • Cash Equivalent 729,633 2.3 11 P THE BOGDAHN `� GROUP. Asset Allocation Summary Total Fund As of September 30,2013 Asset Allocation By Manager as of Asset Allocation By Manager as of June 30,2013 :$30,237,076 September 30,2013:$31,810,974 Allocation Allocation Market Value Allocation Market Value Allocation • Vanguard Total Stock Market(VITSX) 15,836,585 52.4 • Vanguard Total Stock Market(VITSX) 16,832,629 52.9 • RBC Global(Voyageur) 4,514,315 14.9 • RBC Global(Voyageur) 4,914,496 15.4 • Galliard Core Fixed Income 4,440,244 14.7 • Galliard Core Fixed Income 4,465,982 14.0 • Intercontinental 1,875,574 6.2 • Intercontinental 1,940,365 6.1 • Galliard TIPS 1,175,454 3.9 • Galliard TIPS 1,186,311 3.7 • Templeton Global Bond Fund(TGBAX) 985,496 3.3 • Templeton Global Bond Fund(TGBAX) 986,260 3.1 American Core Realty Fund 762,601 2.5 American Core Realty Fund 777,069 2.4 Receipt& Disbursement 646,590 2.1 Receipt& Disbursement 707,646 2.2 Galliard Cash 216 0.0 Galliard Cash 216 0.0 THE, 12 ciBOGDAHN � GROUP. Page Intentionally Left Blank 13 Asset Allocation vs. Target Allocation Total Fund As of September 30,2013 Asset Allocation vs.Target Allocation Vanguard Total Stock Market 2.9% RBC Global(Voyageur) 0.4% Galliard Core Fixed Income -1.0 r Galliard TIPS -1.3 Templeton Global Bond Fund(TGBAX) -1.9% American Core Realty Fund -2.6 r Intercontinental 1.1% Receipt&Disbursement 2.2% Galliard Cash 0.0% -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(%) $ Vanguard Total Stock Market 16,832,629 52.9 50.0 RBC Global(Voyageur) 4,914,496 15.4 15.0 Galliard Core Fixed Income 4,465,982 14.0 15.0 Galliard TIPS 1,186,311 3.7 5.0 Templeton Global Bond Fund(TGBAX) 986,260 3.1 5.0 American Core Realty Fund 777,069 2.4 5.0 Intercontinental 1,940,365 6.1 5.0 Receipt& Disbursement 707,646 2.2 0.0 Galliard Cash 216 0.0 0.0 Total Fund 31,810,974 100.0 100.0 INN THE 14 /91 laii, BOGDAHN . GROUP. Asset Allocation History Total Fund As of September 30,2013 Historical Asset Allocation by Portfolio Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 ($) % ($) % ($) % ($) % ($) % Total Equity 21,747,126 68.36 20,350,900 67.30 19,894,108 67.00 18,027,915 65.47 17,607,169 65.49 Total Domestic Equity 16,832,629 52.91 15,836,585 52.37 15,409,934 51.90 13,905,360 50.50 13,751,255 51.15 Dalton All Cap Value Equity - 0.00 - 0.00 - 0.00 6,677,361 24.25 6,615,050 24.60 Total International Equity 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 3,855,915 14.34 RBC Global(Voyageur) 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 3,855,915 14.34 Total Fixed Income 6,638,552 20.87 6,601,194 21.83 6,798,996 22.90 6,780,745 24.63 6,742,203 25.08 Total Domestic Fixed Income 5,652,293 17.77 5,615,698 18.57 5,776,095 19.45 5,762,425 20.93 5,723,119 21.29 Galliard Core Fixed Income 4,465,982 14.04 4,440,244 14.68 4,528,336 15.25 4,515,562 16.40 4,494,942 16.72 Galliard TIPS 1,186,311 3.73 1,175,454 3.89 1,247,759 4.20 1,246,863 4.53 1,228,177 4.57 Total Global Fixed Income 986,260 3.10 985,496 3.26 1,022,901 3.44 1,018,321 3.70 1,019,084 3.79 Templeton Global Bond Fund(TGBAX) 986,260 3.10 985,496 3.26 1,022,901 3.44 1,018,321 3.70 1,019,084 3.79 Total Real Estate 2,717,434 8.54 2,638,175 8.72 2,549,800 8.59 2,497,335 9.07 2,393,430 8.90 American Core Realty Fund 777,069 2.44 762,601 2.52 748,761 2.52 741,457 2.69 725,342 2.70 Intercontinental 1,940,365 6.10 1,875,574 6.20 1,801,039 6.07 1,755,878 6.38 1,668,088 6.20 Receipt&Disbursement 707,646 2.22 646,590 2.14 449,712 1.51 229,349 0.83 143,119 0.53 Galliard Cash 216 0.00 216 0.00 216 0.00 216 0.00 216 0.00 Total Fund Portfolio 31,810,974 100.00 30,237,076 100.00 29,692,832 100.00 27,535,560 100.00 26,886,138 100.00 15 P THE BOGDAHN `� GROUP. Asset Allocation History Total Fund As of September 30,2013 Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 60.0 c 0 = 50.0 ea c, 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 9/13 Domestic Equity P International Equity IM Fixed Income r Global Fixed Income . Real Estate I Cash Equivalent 16 P THE BOGDAHN `� GROUP. Page Intentionally Left Blank 17 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of September 30,2013 70.0 65.0 60.0 55.0 0 50.0 45.0 40.0 ▪ 35.0 0 ea▪ 30.0 0 • 25.0 20.0 0 15.0 0 10.0 0 5.0 0 0 0.0 0 -5.0 US Equity Intl.Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 52.91 (22) 15.45 (47) 17.77 (86) 3.10 (86) 0.00 8.54 (26) 2.23 (27) 5th Percentile 61.70 28.42 43.82 9.60 32.42 12.01 7.20 1st Quartile 51.97 20.88 33.34 5.21 17.14 8.55 2.47 Median 45.41 15.22 27.82 4.78 9.25 5.58 1.27 3rd Quartile 32.69 10.79 21.51 4.30 3.92 4.49 0.53 95th Percentile 20.88 8.05 13.68 2.26 1.74 2.84 0.13 THE 18 t BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30,2013 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Equity 20,350,900 11,017 - - -11,017 -738 95,259 1,301,705 21,747,126 Total Domestic Equity 15,836,585 - - - - - 81,717 914,328 16,832,629 Lateef Asset Mgmt.Equity - - - - - - - - - Dalton All Cap Value Equity - - - - - - - - - Vanguard Total Stock Market(VITSX) 15,836,585 - - - - - 81,717 914,328 16,832,629 Total International Equity 4,514,315 11,017 - - -11,017 -738 13,542 387,377 4,914,496 RBC Global(Voyageur) 4,514,315 11,017 - - -11,017 -738 13,542 387,377 4,914,496 Total Fixed Income 6,601,194 -9,786 - - -442 -145 13,256 34,475 6,638,552 Total Domestic Fixed Income 5,615,698 - - - -442 -145 3,469 33,712 5,652,293 Galliard Core Fixed Income 4,440,244 - - - - - - 25,738 4,465,982 Galliard TIPS 1,175,454 - - - -442 -145 3,469 7,974 1,186,311 Total Global Fixed Income 985,496 -9,786 - - - - 9,786 763 986,260 Templeton Global Bond Fund(TGBAX) 985,496 -9,786 - - - - 9,786 763 986,260 Total Real Estate 2,638,175 -8,995 - - -6,085 - 40,569 53,769 2,717,434 American Core Realty Fund 762,601 -8,995 - - -2,143 - 9,161 16,444 777,069 Intercontinental 1,875,574 - - - -3,942 - 31,408 37,325 1,940,365 Receipt& Disbursement 646,590 7,764 531,499 -470,339 - -7,888 18 1 707,646 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 30,237,076 - 531,499 -470,339 -17,543 -8,771 149,103 1,389,950 31,810,974 THE 19 [ BOGDAHN `� GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2012 To September 30,2013 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Equity 17,607,169 163,528 - - -100,579 -5,155 476,403 3,605,760 21,747,126 Total Domestic Equity 13,751,255 123,777 - - -60,828 -2,202 332,314 2,688,313 16,832,629 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 - - - - 224,902 2,350,175 16,832,629 Total International Equity 3,855,915 39,751 - - -39,751 -2,953 144,088 917,447 4,914,496 RBC Global(Voyageur) 3,855,915 39,751 - - -39,751 -2,953 144,088 917,447 4,914,496 Total Fixed Income 6,742,203 -53,853 - - -10,283 -603 82,781 -121,693 6,638,552 Total Domestic Fixed Income 5,723,119 14,796 - - -10,283 -603 14,132 -88,868 5,652,293 Galliard Core Fixed Income 4,494,942 2,796 - - -2,796 - - -28,960 4,465,982 Galliard TIPS 1,228,177 12,000 - - -7,487 -603 14,132 -59,909 1,186,311 Total Global Fixed Income 1,019,084 -68,649 - - - - 68,649 -32,824 986,260 Templeton Global Bond Fund(TGBAX) 1,019,084 -68,649 - - - - 68,649 -32,824 986,260 Total Real Estate 2,393,430 -26,767 - - -37,459 - 125,989 262,240 2,717,434 American Core Realty Fund 725,342 -26,767 - - -8,343 - 40,025 46,811 777,069 Intercontinental 1,668,088 - - - -29,116 - 85,964 215,429 1,940,365 Receipt& Disbursement 143,119 -82,908 2,430,479 -1,745,278 - -37,819 52 - 707,646 Galliard Cash 216 - - - - - - - 216 Total Fund Portfolio 26,886,138 - 2,430,479 -1,745,278 -148,321 -43,577 685,224 3,746,308 31,810,974 PTHE BOGDAHN 20 `� GROUP. Comparative Performance Trailing Returns Total Fund As of September 30,2013 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) 5.04 (42) 15.72 (6) 15.72 (6) 10.81 (22) 8.68 (34) 4.98 (75) 11/01/2000 Total Fund Policy 5.46 (21) 15.05 (12) 15.05 (12) 12.15 (4) 9.08 (18) 4.7i (87) All Public Plans-Total Fund Median 4.87 12.49 12.49 10.04 8.23 5.46 Total Fund(New Mgrs)(Net) 5.04 (42) 15.72 (6) 15.72 (6) 10.81 (22) 8.67 (34) 3.94 (64) 10/01/2007 Total Fund Policy 5.46 (21) 15.05 (12) 15.05 (12) 12.15 (4) 9.08 (18) 5.23 (14) All Public Plans-Total Fund Median 4.87 12.49 12.49 10.04 8.23 4.27 Total Fund(Gross) 16.33 (4) 16.33 (4) 11.54 (7) 5.69 (37) 11/01/2000 Total Fund Policy 5.46 (21) 15.05 (12) 15.05 (12) 12.15 (4) 9.08 (18) 4.71 (87) All Public Plans-Total Fund Median 4.87 12.49 12.49 10.04 8.23 5.46 Total Fund(New Mgrs)(Gross) 5.10 (40) 16.33 (4) 16.33 (4) 11.54 (7) 9.40 (12) 4.59 (36) 10/01/2007 Total Fund Policy 5.46 (21) 15.05 (12) 15.05 (12) 12.15 (4) 9.08 (18) 5.23 (14) All Public Plans-Total Fund Median 4.87 12.49 12.49 10.04 8.23 4.27 Total Equity 6.86 M.09 23.09 14.28 10.90 .36 01/01/2001 Total Equity Policy 7.55 22.30 22.30 15.00 9.14 3.97 Total Domestic Equity 6.29 (41) 21.85 (33) 21.85 (33) 14.61 (79) 10.47 (47) 5.10 (37) 11/01/2000 Total Domestic Equity Policy 6.35 (38) 21.60 (36) 21.60 (36) 16.76 (43) 10.46 (47) 3.41 (84) IM U.S. Large Cap Core Equity(SA+CF)Median 6.04 20.60 20.60 16.45 10.27 4.44 Total International Equity 8.88 (80) 27.54 (16) 27.54 (16) 13.23 (11) 12.65 (7) 6.07 (78) 11/01/2000 MSCI EAFE Index 11.61 (37) 24.29 (43) 24.29 (43) 8.97 (45) 6.85 (65) 4.56 (95) IM International Large Cap Value Equity(SA+CF)Median 10.90 23.16 23.16 8.73 7.43 7.17 Total Fixed Income 0.72 -0.59 -0.59 3.43 M7 5.56 ' 11/01/2000 Total Fixed Policy 0.76 -0.71 -0.71 2.58 4.95 5.43 Total Domestic Fixed Income 0.66 -1.30 -1.30 3.03 5.73 5.47 11/01/2000 Total Domestic Fixed Policy 0.76 -0.71 -0.71 2.58 4.95 5.43 Total Global Fixed Income 1.09 (47) 3.53 (4) 3.53 (4) N/A N/A 8.37 (4) 12/01/2011 Total Global Fixed Income Policy 2.88 (3) -4.60 (86) -4.60 (86) N/A N/A -0.27 (95) IM Global Fixed Income(MF)Median 0.95 -1.39 -1.39 2.40 5.84 3.16 Total Real Estate 3.59 1.69 10/01/2007 NCREIF Fund Index-ODCE(EW)(Net) 3.56 13.01 13.01 14.26 0.67 1.09 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 Trailing Returns Total Fund As of September 30,2013 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global(Voyageur) 8.88 (80) 27.54 (16) 27.54 (16) 13.23 (11) 12.65 (7) 1.57 (29) 11/01/2007 MSCI EAFE Index 11.61 (37) 24.29 (43) 24.29 (43) 8.97 (45) 6.85 (65) -1.10 (73) IM International Large Cap Value Equity(SA+CF)Median 10.90 23.16 23.16 8.73 7.43 -0.06 Vanguard Total Stock Market(VITSX) 6.29 (64) N/A N/A N/A N/A 13.51 (59) 03/01/2013 Vanguard Total Stock Market Index Hybrid 6.29 (64) 21.60 (59) 21.60 (59) 16.85 (22) 10.75 (30) 13.57 (56) IM U.S. Multi-Cap Core Equity(MF)Median 6.85 22.82 22.82 14.87 9.80 13.93 Galliard Core Fixed Income 0.58 (78) -0.64 (74) -0.64 (74) 3.07 (39) 6.12 (29) 4.78 (84) 10/01/2007 Barclays Intermediate Aggregate Index 0.76 (40) -0.71 (76) -0.71 (76) 2.58 (68) 4.95 (89) 4.82 (82) IM U.S. Intermediate Duration(SA+CF)Median 0.72 -0.27 -0.27 2.89 5.61 5.28 Galliard TIPS 0.97 -3.71 -3.71 2.90 3.98 4.59 10/01/2007 BC U.S.Treasury Inflation Notes: 1-10 Year 0.92 -3.90 -3.90 3.08 4.12 4.74 Templeton Global Bond Fund(TGBAX) 1.09 (47) 3.54 (4) 3.54 (4) N/A N/A 8.38 (4) 12/01/2011 Citigroup World Government Bond 2.88 (3) -4.60 (86) -4.60 (86) 1.02 (83) 4.25 (86) -0.27 (95) IM Global Fixed Income(MF)Median 0.95 -1.39 -1.39 2.40 5.84 3.16 American Core Realty Fund 3.40 (56) 12.27 (66) 12.27 (66) 13.29 (71) 0.19 (63) 0.93 (63) 10/01/2007 American Core Realty Policy 3.56 (50) 13.01 (61) 13.01 (61) 14.26 (67) 4.23 (12) 4.40 (11) IM U.S. Open End Private Real Estate(SA+CF)Median 3.54 13.35 13.35 15.11 2.17 2.39 Intercontinental 3.66 (49) 18.21 (17) 18.21 (17) 15.74 (34) N/A 15.74 (34) 10/01/2010 NCREIF Fund Index-ODCE(EW)(Net) 3.56 (50) 13.01 (61) 13.01 (61) 14.26 (67) 0.67 (61) 14.26 (67) IM U.S. Open End Private Real Estate(SA+CF)Median 3.54 13.35 13.35 15.11 2.17 15.11 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. \ 22 [ BOGDAHN `� GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 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) 15.72 (6) 18.95 (29) -1.17 (80) 10.67 (33) 0.70 (60) -16.84 (92) 13.03 (73) 7.89 (64) Total Fund Policy 15.05 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 12.49 17.90 0.32 9.98 1.29 -13.67 14.39 8.63 Total Fund(New Mgrs)(Net) 15.72 (6) 18.95 (29) -1.17 (80) 10.66 (33) 0.68 (60) -16.82 (91) N/A N/A Total Fund Policy 15.05 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 12.49 17.90 0.32 9.98 1.29 -13.67 14.39 8.63 Total Fund(Gross) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (21) 1.43 (48) -16.48 (90) 13.92 (58) 8.62 (51) Total Fund Policy 15.05 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 12.49 17.90 0.32 9.98 1.29 -13.67 14.39 8.63 Total Fund(New Mgrs)(Gross) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (21) 1.39 (49) -16.46 (90) N/A N/A Total Fund Policy 15.05 (12) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 12.49 17.90 0.32 9.98 1.29 -13.67 14.39 8.63 Total Equity 23.09 mi 27.08 1 -4.58 13.61 Mr -1.09 -25.61 1 18.52 1 10.83 Total Equity Policy 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 21.85 (33) 27.76 (61) -3.30 (89) 14.19 (8) -4.29 (37) -21.66 (63) 17.58 (43) 9.29 (67) Total Domestic Equity Policy 21.60 (36) 30.20 (44) 0.55 (56) 10.96 (32) -6.91 (63) -21.98 (68) 16.44 (59) 10.79 (49) IM U.S. Large Cap Core Equity(SA+CF)Median 20.60 29.69 1.03 9.52 -5.79 -20.48 16.97 10.76 Total International Equity 27.54 (16) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) -39.55 (100) 23.63 (55) 19.84 (66) MSCI EAFE Index 24.29 (43) 14.33 (53) -8.94 (57) 3.71 (64) 3.80 (64) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity(SA+CF)Median 23.16 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 Total Fixed Income -0.59 6.34 .27 ' 10.53 64 4.96 3.27 Total Fixed Policy -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income -1.30 5.88 4.67 9.27 10.53 0.64 4.96 3.27 Total Domestic Fixed Policy -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Global Fixed Income 3.53 (4) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -4.60 (86) N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median -1.39 7.44 1.52 7.91 14.10 -1.47 7.30 2.54 Total Real Estate 16.42 (22) 12.81 (52) 15.82 (79) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A NCREIF Fund Index-ODCE(EW)(Net) 13.01 (61) 11.61 (66) 18.27 (39) 6.97 (46) -35.19 (52) 3.18 (54) 18.21 (58) 17.46 (55) IM U.S. Open End Private Real Estate(SA+CF)Median 13.35 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. 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. 23 [ \ BOGDAHN `� GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 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 (23) -15.13 (16) N/A N/A Russell 1000 Growth Index 19.27 (66) 29.19 (38) 3.78 (mod) 12.65 (36) -1.85 (38) -20.88 (53) 19.35 (58) 6.04 (58) IM U.S. Large Cap Growth Equity(SA+CF)Median 20.43 27.63 1.22 11.31 -2.97 -20.47 20.41 6.80 RBC Global(Voyageur) 27.54 (16) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) N/A N/A N/A MSCI EAFE Index 24.29 (43) 14.33 (53) -8.94 (57) 3.71 (64) 3.80 (64) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity(SA+CF)Median 23.16 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 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 21.60 (59) 30.28 (13) 0.71 (21) 11.16 (28) -6.03 (65) -21.19 (29) 16.98 (47) 10.38 (29) IM U.S. Multi-Cap Core Equity(MF)Median 22.82 25.34 -2.34 9.66 -4.56 -22.99 16.71 9.13 Galliard Core Fixed Income -0.64 (74) 5.82 (44) 4.16 (26) 9.63 (17) 12.08 (39) -1.68 (94) N/A N/A Barclays Intermediate Aggregate Index -0.71 (76) 4.31 (85) 4.22 (22) 7.52 (77) 9.69 (82) 4.16 (35) 5.33 (69) 3.84 (60) IM U.S. Intermediate Duration(SA+CF)Median -0.27 5.57 3.60 8.25 11.44 3.24 5.49 3.91 Galliard TIPS -3.71 6.01 6.73 7.28 3.97 7.72 N/A N/A BC U.S.Treasury Inflation Notes: 1-10 Year -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Templeton Global Bond Fund(TGBAX) 3.54 (4) N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -4.60 (86) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (52) 5.90 (6) 8.69 (31) 2.23 (64) IM Global Fixed Income(MF)Median -1.39 7.44 1.52 7.91 14.10 -1.47 7.30 2.54 American Core Realty Fund 12.27 (66) 11.56 (69) 16.11 (78) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A American Core Realty Policy 13.01 (61) 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 13.35 12.89 16.62 6.39 -34.36 3.60 18.73 18.08 Intercontinental 18.21 (17) 13.38 (41) 15.68 (79) N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE(EW)(Net) 13.01 (61) 11.61 (66) 18.27 (39) 6.97 (46) -35.19 (52) 3.18 (54) 18.21 (58) 17.46 (55) IM U.S. Open End Private Real Estate(SA+CF)Median 13.35 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. 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. \ 24 [ BOGDAHN `� GROUP. Performance Review Total Fund (Gross) As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Fund(Gross) 30,237 - 531 -470 -18 -9 149 1,390 31,811 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Fund(Gross) 26,886 - 2,430 -1,745 -148 -44 685 3,746 31,811 Peer Group Analysis-All Public Plans-Total Fund Cummulative Performance 20.00 - - $220.00 • 18.00 - • $203.54 O $200.00 - 16.00 - 0 0 88.31 14.00 - 0 0 $180.00 - c 12.00 - • C' $160.00 - I15 10.00 - K 8.00 ■ $140.00 ,,vii, 6.00 - $120.00 4.00 2.00 - $100.00 $80.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR $60.00 O Total Fund(Gross) 5.10 (40) 16.33 (4) 16.33 (4) 18.06 (5) 11.54 (7) 11.50 (7) 9.41 (12) I O Total Fund Policy 5.46 (21) 15.05 (12) 15.05 (12) 17.30 (11) 12.15 (4) 11.39 (9) 9.08 (18) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/13 Median 4.87 12.49 12.49 15.09 10.04 10.11 8.23 - Total Fund(Gross) - Total Fund Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total Fund(Gross) 1.27 (4) 7.28 (4) 1.88 (43) 6.06 (2) -3.30 (93) 9.91 (4) Total Fund Policy 0.91 (12) 6.60 (12) 1.42 (62) 4.82 (46) -1.92 (49) 8.54 (37) All Public Plans-Total Fund Median 0.08 5.47 1.73 4.77 -1.95 8.14 THE 25 (141,---.0 BOGDAHN GROUP Performance Review Total Fund (Gross) As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 21.9 0.00 e Over c e 7 re 18.0 performance 8 00080 0 12.0 _ 25.00 8 6.0 50.00 I00 OO OO eOO O a O O O E 7500 000O � O � :° -6.0 0 Under 4,75 64 1 Performance re 1 1 1 1 1 1 1 1 1 100.00 1 1 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 Total Fund Policy(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • Total Fund(Gross) 20 8 (40%) 2 (10%) 7 (35%) 3 (15%) Earliest Date X Latest Date • Total Fund Policy 20 5 (25%) 11 (55%) 4 (20%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 12.48 9.60 0 0 11.90 V9.20 0 0 E 11.20 > 8.80 w w re 10.50 re 840 9.80 - I I I I I I I I 1 1 1 1 1 1 1 1 9.40 9.60 9.80 10.00 10.20 10.40 10.60 10.80 11.00 11.20 12.60 12.80 13.00 13.20 13.40 13.60 13.80 14.00 14.20 14.40 14.53 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 11.54 10.99 • Total Fund(Gross) 9.41 14.27 O Total Fund Policy 12.15 9.62 0 Total Fund Policy 9.08 12.83 Median 10.04 9.58 Median 8.23 12.91 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Fund(Gross) 2.06 104.63 130.44 -1.97 -0.20 1.06 1.13 6.92 Total Fund Policy 0.00 100.00 100.00 0.00 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) 2.46 107.64 110.67 -0.45 0.21 0.70 1.10 9.24 Total Fund Policy 0.00 100.00 100.00 0.00 0.74 1.00 8.04 Th THE 26 ( BOGDAHN `� GROUP. Performance Review Total Domestic Equity As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Domestic Equity 15,837 - - - - - 82 914 16,833 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Domestic Equity 13,751 124 - - -61 -2 332 2,688 16,833 Peer Group Analysis-IM U.S. Large Cap Core Equity(SA+CF) Cumulative Performance 34.04 $220.00 32.00 - $200.00 - $192.14 28.00 - 0 $180.00 0 - 24.00 - 166.60 0 0 0 0 $160.00 - 20.00 16.00 ■ E 0 $140.00 - 0 $120.00 12.00 8.00 $100.00 - $80.00 - 4.00 $60.00 - 0.00 $40.00 1 1 1 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/13 O Total Domestic Equity 6.29 (41) 21.85 (33) 21.85 (33) 24.77 (53) 14.61 (79) 14.51 (58) 10.47 (47) O Total Domestic Equity Policy 6.35 (38) 21.60 (36) 21.60 (36) 25.83 (35) 16.76 (43) 15.29 (38) 10.46 (47) - Total Domestic Equity Median 6.04 20.60 20.60 24.87 16.45 14.78 10.27 Total Domestic Equity Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total Domestic Equity 2.77 (50) 11.15 (35) 0.36 (38) 7.22 (22) -5.85 (89) 13.48 (40) Total Domestic Equity Policy 2.69 (52) 11.07 (37) 0.25 (41) 6.23 (56) -3.15 (38) 12.87 (53) IM U.S.Large Cap Core Equity(SA+CF)Median 2.74 10.67 0.03 6.41 -3.54 12.98 THE 27 BOGDAHN Lir---.0 GROUP. Performance Review Total Domestic Equity As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years - 30.0 y 0.00 ° Over c 0 Performance f0 20.0 re w Cr 25.00 O 0 0 0 O e 0 0 10.0 • • 50.00 0 0 0 0 00 O O 0 0 p O O O O O O 0.0 a O 0 O °_ -10.0 • • - E 75.00 0e o000 0 O 12 Under e F Performance 100.00 1 1 1 1 1 1 1 1 1 1 1 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 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%) 7 (35%) 2 (10%) Earliest Date X Latest Date p Total Domestic Equity Policy 20 0 (0%) 9 (45%) 11 (55%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 10.50 - 16.80 0 0 0 • 10.43 • 16.00 c ; 10.36 15.20 re 0 10.29 14.40 I I I I I I I I 15.40 15.60 15.80 16.00 16.20 16.40 16.60 16.78 20.40 20.60 20.80 21.00 21.20 21.40 21.60 21.80 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 14.61 16.54 0 Total Domestic Equity 10.47 21.65 O Total Domestic Equity Policy 16.76 15.52 0 Total Domestic Equity Policy 10.46 20.88 Median 16.45 15.41 Median 10.27 20.43 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Domestic Equity 2.63 99.73 115.21 -3.24 -0.64 1.03 1.10 8.39 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.27 1.00 7.24 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 3.56 103.53 104.39 -0.35 0.07 0.60 1.05 13.32 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 0.63 12.75 THE 28 i►d BOGDAHN GROUP. Performance Review Vanguard Total Stock Market(VITSX) As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Vanguard Total Stock Market(VITSX) 15,837 - - - - - 82 914 16,833 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Vanguard Total Stock Market(VITSX) - 14,258 - - - - 225 2,350 16,833 Peer Group Analysis-IM U.S. Multi-Cap Core Equity(MF) Cumulative Performance 38.67 $111.50 36.00 $110.00 - 32.00 $109.28 28.00 $108.00 - 0 24.00 - 0 0 $106.00 - 20.00 - 0 re 16.00 - 0 $104.00 - 12.00 - 0 8.00 = $102.00 - 4.00 $100.00 - 0.00 - I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/13 6/13 9/13 • Vanguard Total Stock Market(VITSX) 6.29 (64) N/A N/A N/A N/A N/A N/A O Vanguard Total Stock Market Index Hybrid 6.29 (64) 21.60 (59) 21.60 (59) 25.86 (33) 16.85 (22) 15.40 (21) 10.75 (30) - Vanguard Total Stock Market(VITSX) Median 6.85 22.82 22.82 24.76 14.87 13.52 9.80 Vanguard Total Stock Market Index Hybrid Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Vanguard Total Stock Market(VITSX) 2.77 (43) N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 2.81 (42) 11.06 (45) 0.19 (78) 6.24 (32) -3.16 (19) 12.94 (38) IM U.S.Multi-Cap Core Equity(MF)Median 2.54 10.91 1.49 5.66 -4.61 12.58 THE 29 BOGDAHN '� GROUP. Page Intentionally Left Blank 30 p� BOGDAHN GROUP. Performance Review Total International Equity As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total International Equity 4,514 11 - - -11 -1 14 387 4,914 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total International Equity 3,856 40 - - -40 -3 144 917 4,914 Peer Group Analysis IM International Large Cap Value Equity(SA+CF) Cumulative Performance $232.50 36.00 $220.00 32.00 - $205.91 $200.00 - 28.00 - O O 24.00 - 0 0 O $180.00 - /1 "178.48 = 20.00 - O $160.00 - J / w 16.00 - $140.00 - re 12.00 - • Or• $120.00 - / 8.00 - MI $100.00 J 4.00 - $80.00 - 0.00 - - _ $60.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR g40.00 • Total International Equity 8.88 (80) 27.54 (16) 27.54 (16) 26.13 (5) 13.23 (11) 12.84 (8) 12.65 (7) I I I I I I I I -FT • MSCI EAFE Index 11.61 (37) 24.29 (43) 24.29 (43) 19.21 (40) 8.97 (45) 7.63 (58) 6.85 (65) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/13 Median 10.90 23.16 23.16 18.54 8.73 8.06 7.43 - Total International Equity - MSCI EAFE Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total International Equity 0.69 (34) 8.79 (2) 6.93 (33) 11.28 (2) -6.02 (33) 17.64 (2) MSCI EAFE Index -0.73 (61) 5.23 (32) 6.60 (42) 6.98 (56) -6.85 (50) 10.98 (51) IM International Large Cap Value Equity(SA+CF)Median 0.00 4.23 6.19 7.26 -6.88 11.01 THE 31 [ BOGDAHN GROUP. Performance Review Total International Equity As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years r 33.0 - Over c 0.00 O O O O O O Q O 'c Performance 0 22.0 - w w 25.00 O Gk° 11.0 ■ w 0 O O o is 0.0 - o •� o 50.00 0 0 0 O 0 0 v -11.0 - � c 75.00 w O O O Q O 7.41.O O O Under O O O }a -22.0 - Performance 100.00 O O Q = I I r I I I -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 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 9 (45%) 2 (10%) 2 (10%) 7 (35%) Earliest Date X Latest Date O MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.98 13.59 • 12.00 0 6. 12.00 c E 10.00 10.00 re 8.00 0 O - I I I I I 6.00 15.60 16.00 16.40 16.80 17.20 17.60 18.00 18.40 18.80 19.20 19.57 23.00 24.00 25.00 26.00 27.00 28.00 29.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 13.23 19.08 • Total International Equity 12.65 28.24 O MSCI EAFE Index 8.97 16.09 • MSCI EAFE Index 6.85 23.85 Median 8.73 16.37 Median 7.43 23.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total International Equity 5.70 107.24 90.41 4.12 0.70 0.78 1.00 11.45 MSCI EAFE Index 0.00 100.00 100.00 0.00 1.00 11.37 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 6.98 115.10 96.88 5.35 0.87 0.60 1.09 16.78 MSCI EAFE Index 0.00 100.00 100.00 0.00 1.00 THE 32 BOGDAHN L.-, GROUP Performance Review RBC Global (Voyageur) As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 RBC Global(Voyageur) 4,514 11 - - -11 -1 14 387 4,914 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 RBC Global(Voyageur) 3,856 40 - - -40 -3 144 917 4,914 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance $134.85 36.00 $130.00 32.00 $122.05 $120.00 - 28.00 O O O $110.00 - 24.00 0 0 $100.00 - \ $99.03 = 20.00 O $90.00 w 16.00 re 12.00 • • • $80.00 - 8.00 • $70.00 \'/' 4.00 $60.00 0.00 $50.00 - $40.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global(Voyageur) 8.88 (80) 27.54 (16) 27.54 (16) 26.13 (5) 13.23 (11) 12.84 (8) 12.65 (7) I I -I--II • MSCI EAFE Index 11.61 (37) 24.29 (43) 24.29 (43) 19.21 (40) 8.97 (45) 7.63 (58) 6.85 (65) 12/07 9/08 6/09 3/10 12/10 9/11 6/12 3/13 9/13 Median 10.90 23.16 23.16 18.54 8.73 8.06 7.43 - RBC Global(Voyageur) - MSCI EAFE Index Comparative Performance ■ 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 RBC Global(Voyageur) 0.69 (34) 8.79 (2) 6.93 (33) 11.28 (2) -6.02 (33) 17.64 (2) MSCI EAFE Index -0.73 (61) 5.23 (32) 6.60 (42) 6.98 (56) -6.85 (50) 10.98 (51) IM International Large Cap Value Equity(SA+CF)Median 0.00 4.23 6.19 7.26 -6.88 11.01 Th THE 33 Li-_....0 BOGDAHN GROUP. Performance Review RBC Global (Voyageur) As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years -- 30.0 Over 0.00 O Q O O O "' Performance f0 re 25.00 0 ' 0 20.0 0 '° •• • u • O O>' • x 50.00 -• 10.0 •• 6 O O O O O O 7. • 000 E 75.00 00 0000 00 o 3 0.0 w K 0 Under 100.00 re Performance 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 -10.0 - 1 1 1 1 1 1 1 1 1 1 -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) 12 9 (75%) 2 (17%) 1 (8%) 0 (0%) • Over Performance Earliest Date X Latest Date p MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.98 13.59 • 12.00 O 12.00 c E 10.00 10.00 re 8.00 0 O I I I I I 6.00 15.60 16.00 16.40 16.80 17.20 17.60 18.00 18.40 18.80 19.20 19.57 23.00 24.00 25.00 26.00 27.00 28.00 29.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 13.23 19.08 0 RBC Global(Voyageur) 12.65 28.24 O MSCI EAFE Index 8.97 16.09 0 MSCI EAFE Index 6.85 23.85 Median 8.73 16.37 Median 7.43 23.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture RBC Global(Voyageur) 5.70 107.24 90.41 4.12 0.70 0.78 1.00 11.45 MSCI EAFE Index 100.00 U.1 1.00 11.37 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 6.98 115.10 96.88 5.35 0.87 0.60 1.09 16.78 MSCI EAFE Index 100.00 100.00 0.00 ■ 1.00 15.42 Th THE 34 (� BOGDAHN ``� GROUP. Performance Review Total Domestic Fixed Income Composite As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Domestic Fixed Income Composite 5,616 - - - - - 3 34 5,652 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Domestic Fixed Income Composite 5,723 15 - - -10 -1 14 -89 5,652 Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance 9.46 $215.00 8.00 $200.00 6.00 $180.00 0 • 0 ` 4.00 $160.00 • re ■2.00 i $140.00 00 0.00 $120.00 0 0 0 • -2.00 $100.00 KT'TT . . . QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 9/13 O Total Domestic Fixed Income Composite 0.66 (64) -1.30 (95) -1.30 (95) 2.22 (67) 3.03 (40) 4.56 (31) 5.73 (47) O Total Domestic Fixed Policy 0.76 (40) -0.71 (76) -0.71 (76) 1.77 (86) 2.58 (68) 3.79 (78) 4.95 (89) - Total Domestic Fixed Income Composite Median 0.72 -0.27 -0.27 2.57 2.89 4.20 5.61 - Total Domestic Fixed Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total Domestic Fixed Income Composite -2.72 (100) 0.30 (60) 0.49 (37) 1.79 (47) 1.78 (16) 1.10 (53) Total Domestic Fixed Policy -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) 0.66 (81) IM U.S.Intermediate Duration(SA+CF)Median -1.76 0.33 0.40 1.74 1.46 1.17 THE 35 BOGDAHN '� GROUP. Performance Review Total Domestic Fixed Income Composite As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years E 10.0 y 0.00 o Over c o Performance f0 O a, 8.0 0 0 0 O 0 0 O w 25.00 o Cp O • • c 6.0 0 • o o • U 50.00 O /-1 a O O O 4.0 • O o 0 8 e 0 O O O LL 75.00 O O O i i 2.0 - $ Under O O O O 0 O Performance e O v 100.00 I I I I 1 1 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 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%) 3(15%) 3(15%) 8(40%) Earliest Date X Latest Date p Total Domestic Fixed Policy 20 0(0%) 2(10%) 14(70%) 4(20%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.11 5.85 3.00 • 5.70 0 c 5.40 2.80 o w re re 5.10 2.60 0 0 I I I I I I I I I I I I I 2.15 2.20 2.25 2.30 2.35 2.40 2.45 2.50 2.55 2.60 2.65 2.70 2.75 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 3.03 2.67 0 Total Domestic Fixed Income Composite 5.73 3.40 O Total Domestic Fixed Policy 2.58 2.19 0 Total Domestic Fixed Policy 4.95 2.56 Median 2.89 2.36 Median 5.61 3.11 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Domestic Fixed Income Composite 0.78 116.15 114.18 0.19 0.57 1.21 1.10 1.53 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 1.21 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 1.90 115.08 113.56 0.71 0.40 1.58 1.01 2.12 Total Domestic Fixed Policy 0.00 100.00 100.00 1.00 1.38 THE 36 ( BOGDAHN `� GROUP. Performance Review Galliard Core Fixed Income As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Galliard Core Fixed Income 4,440 - - - - - - 26 4,466 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Galliard Core Fixed Income 4,495 3 - - -3 - - -29 4,466 Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance ■ 9.46 $140.00 • 8.00 $135.00 - $132.61 $130.00 - 6.00 Oiii $125.00 - O c 4.00 o $120.00 - a 0 0 0 $115.00 - 2.00 $110.00 - pO 0.00 $105.00 ■ • O O O $100.00 - -2.00 $95.00 - I I I I I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 • Galliard Core Fixed Income 0.58 (78) -0.64 (74) -0.64 (74) 2.54 (52) 3.07 (39) 4.68 (24) 6.12 (29) • Barclays Intermediate Aggregate Index 0.76 (40) -0.71 (76) -0.71 (76) 1.77 (86) 2.58 (68) 3.79 (78) 4.95 (89) - Galliard Core Fixed Income Median 0.72 -0.27 -0.27 2.57 2.89 4.20 5.61 - Barclays Intermediate Aggregate Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Galliard Core Fixed Income -1.95 (75) 0.28 (64) 0.46 (39) 1.80 (46) 1.84 (15) 1.01 (61) Barclays Intermediate Aggregate Index -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) 0.66 (81) IM U.S.Intermediate Duration(SA+CF)Median -1.76 0.33 0.40 1.74 1.46 1.17 THE 37 ( BOGDAHN `� GROUP. Performance Review Galliard Core Fixed Income As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 0.00 c.0) 10.0 Over c Q o Performance • re Q Q Q Q E• 8.0 • w 25.00 Q Q Q Q v e. • v 50.00 Q ,"% O O i• 6.0 • • w• ° . 75.00 Q O Q Q 0 0 0 0 0 Q Q Q Q Q Q U 4.0 r o Under w i f0 Performance i • 2.0 1 1 1 1 I 1 1 1 1 100.00 1 r 1 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 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 13 6(46%) 5(38%) 0(0%) 2(15%) 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 3.16 6.30 ^3.00 0 • ^6.00 E5.60 X2.80 5 w re X5.20 - 2.60 • I I I I I 4.80 - I I I I I I 2.16 2.19 2.22 2.25 2.28 2.31 2.34 2.37 2.40 2.43 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 3.60 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 3.07 2.40 • Galliard Core Fixed Income 6.12 3.46 • Barclays Intermediate Aggregate Index 2.58 2.19 • Barclays Intermediate Aggregate Index 4.95 2.56 Median 2.89 2.36 Median 5.61 3.11 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Galliard Core Fixed Income 0.55 108.25 92.10 0.52 0.88 1.39 0.99 1.27 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 1.00 1.21 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 1.81 114.58 90.78 1.50 0.62 1.82 0.93 1.76 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 1.38 THE 38 !!!r� BOGDAHN GROUP. Performance Review Galliard TIPS As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Galliard TIPS 1,175 - - - - - 3 8 1,186 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Galliard TIPS 1,228 12 - - -7 -1 14 -60 1,186 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance ■ 9.77 $145.00 • 8.00 $140.00 - 6.00 1 $135.00 - 4.00 © 0 00 $130.00 - MOMOM 2.00 $125.00 - �� • ib- w 0.00 $120.00 K -2.00 $115.00 -4.00 • 0 0 0 $110.00 - -6.00 $105.00 - ■ -8.00 $100.00 $95.00 1 1 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 • Galliard TIPS 0.97 (20) -3.71 (3) -3.71 (3) 1.04 (89) 2.90 (95) 3.98 (95) 3.98 (100) O BC U.S.Treasury Inflation Notes:1-10 Year 0.92 (37) -3.90 (10) -3.90 (10) 1.08 (83) 3.08 (90) 4.14 (94) 4.12 (99) - Galliard TIPS Median 0.76 -5.78 -5.78 1.31 4.07 5.29 5.47 BC U.S.Treasury Inflation Notes:1-10 Year Comparative Performance M 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Galliard TIPS -5.53 0.35 0.59 1.74 1.59 1.16 BC U.S.Treasury Inflation Notes:1-10 Year 0.33 0.46 1.34 THE 39 LBOGDAHN � GROUP. Performance Review Galliard TIPS As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 9.9 - y 0.00 Over = Performance f0 K 80 w 25.00 It. • N c a •• 0 50.00 .0 6.0 a 0 Q f0 E 75.00.fa 04.0 _ 100.00 ° ° e e 8 8 8 8 0 ® Q Q 8 e Under Performance 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 I I I I I I I I I I I I I I I 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 9.0 9.5 9.9 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 13 0 (0%) 0 (0%) 0(0%) 13(1000/ • Under Performance + Earliest Date X Latest Date • BC U.S.Treasury Inflation Notes:1-10 Year 20 0 (0%) 1 (5%) 5(25% 14(70%; Peer Group Scattergram-3 Years ili. Peer Group Scattergram-5 Years 4.24 4.00 5.50 5.00 3.60 3.20 f., 4.50 O 0 O 4.00 • 2.80 I I 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 4.20 4.40 4.60 4.80 5.00 5.20 5.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 2.90 4.08 • Galliard TIPS 3.98 4.19 • BC U.S.Treasury Inflation Notes:1-10 Year 3.08 4.12 0 BC U.S.Treasury Inflation Notes:1-10 Year 4.12 4.92 Median 4.07 5.76 Median 5.47 5.28 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Galliard TIPS 0.95 98.61 102.19 -0.13 -0.18 0.73 0.99 2.67 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 C 0.79 1.00 2.b5 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.29 92.75 89.91 0.35 -0.13 0.74 0.88 3.71 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 1.00 4.20 MTHE LBOGDAHN --40 ' GROUP. Performance Review Total Global Fixed Income Composite As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Global Fixed Income Composite 985 -10 - - - - 10 1 986 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Global Fixed Income Composite 1,019 -69 - - - - 69 -33 986 Peer Group Analysis-IM Global Fixed Income(MF) mIll Cumulative Performance 13.56 $121.45 $120.00 11.00 $117.00 - \ $115.80 8.00 - $114.00 - v $111.00 - 5.00 - $108.00 - 2.00 re M $105.00 - -1.00 $102.00 - -4.00 - $99.00 - $98.66 $96.00 - -7.00 ■ _ $93.00 - 1 I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 O Total Global Fixed Income Composite 1.09 (47) 3.53 (4) 3.53 (4) N/A N/A N/A N/A O Total Global Fixed Income Policy 2.88 (3) -4.60 (86) -4.60 (86) N/A N/A N/A N/A - Total Global Fixed Income Composite Median 0.95 -1.39 -1.39 2.95 2.40 3.93 5.84 - Total Global Fixed Income Policy Comparative Performance I 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total Global Fixed Income Composite -2.72 (32) 1.42 (9) 3.81 (4) 5.40 (13) -1.00 (97) 7.19 (5) Total Global Fixed Income Policy -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (75) 0.92 (39) -0.51 (100) IM Global Fixed Income(MF)Median -3.25 -0.41 1.12 3.45 0.58 2.45 THE 41 (141,---.0 BOGDAHN GROUP. Performance Review Templeton Global Bond Fund (TGBAX) As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Templeton Global Bond Fund(TGBAX) 985 -10 - - - - 10 1 986 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Templeton Global Bond Fund(TGBAX) 1,019 -69 - - - - 69 -33 986 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 13.56 $121.45 $120.00 11.00 - $117.00 - \ $115.82 8.00 - $114.00 - v 5.00 $111.00 - - e $108.00 - 2.00 --.• re 0 $105.00 -1.00 - 0 $102.00 - -4.00 - 0 0 $99.00 - $98.66 $96.00 - -7.00 • - $93.00 - 1 I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 • Templeton Global Bond Fund(TGBAX) 1.09 (47) 3.54 (4) 3.54 (4) N/A N/A N/A N/A O Citigroup World Government Bond 2.88 (3) -4.60 (86) -4.60 (86) -0.73 (96) 1.02 (83) 1.99 (92) 4.25 (86) - Templeton Global Bond Fund(TGBAX) Median 0.95 -1.39 -1.39 2.95 2.40 3.93 5.84 Citigroup World Government Bond Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Templeton Global Bond Fund(TGBAX) -2.72 (32) 1.42 (9) 3.83 (4) 5.40 (13) -1.00 (97) 7.19 (5) Citigroup World Government Bond -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (75) 0.92 (39) -0.51 (100) IM Global Fixed Income(MF)Median -3.25 -0.41 1.12 3.45 0.58 2.45 THE 42 (141,---.0 BOGDAHN GROUP. Performance Review Total Real Estate As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Real Estate 2,638 -9 - - -6 - 41 54 2,717 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Total Real Estate 2,393 -27 - - -37 - 126 262 2,717 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance ■ 30.08 $118.05 28.00 $110.56 $110.00 - 24.00 06.71 20.00 - $100.00 16.00 - • • •e - - E 12.00 O . • $90.00 ' 111111/ re 8.00 - 4.00 - $80.00 - 0.00 - $70.00 - -4.00 - -8.00 - $60.00 - - I I I I I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 • Total Real Estate 3.59 (50)16.42 (22)16.42 (22)14.60 (28)15.00 (52)11.80 (68) 1.09 (60) • NCREIF Fund Index-Open End Diversified Core(EVV) 3.56 (50)13.01 (61)13.01 (61)12.31 (63)14.26 (67)12.39 (38) 0.67 (61) - Total Real Estate Median 3.54 13.35 13.35 13.13 15.11 12.10 2.17 NCREIF Fund Index-Open End Diversified Core(EV) Comparative Performance 1 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Total Real Estate 4.06 (48) 2.70 (60) 5.16 (8) 2.73 (60) 2.67 (62) 2.99 (68) NCREIF Fund Index-Open End Diversified Core(EVV) 3.86 (55) 2.68 (60) 2.33 (63) 2.77 (53) 2.58 (64) 2.82 (71) IM U.S.Open End Private Real Estate(SA+CF)Median 3.91 3.10 2.52 2.79 2.88 3.43 THE 43 [� BOGDAHN GROUP. Performance Review Total Real Estate As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years - - o.00 18.0 Over o re Performance w 12.0 w 25.00 W 6.0 • 50.00 00000 08Oe 8600000000 To • 0000 00 E • E 75.00 Es -6.0 Under w ~ -12.0 100.00 Performance 1 I I I I I I I i i i i i i 1 i 1 1 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 -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 i Total 5-25 25- Medan- 75-95 NCREIF Fund Index-Open End Diversified Core(EW)(%) Median d • Over Performance • Under Performance Period Count Count Count Count • Total Real Estate 13 0(0%) 3(23°A 9(69°A 1 (8%) Earliest Date X Latest Date • NCREIF Fund Index-Open End Diversified Core(EVV) 20 0(0%) 15(75°A 5(25°A 0(0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.24 2.39 15.00 • ....2.00 E 14.70 E 1.50 Ire 14.40 re1.00 - • • I I I 0.50 - I I I I I I I I •1 I 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.78 10.60 10.70 10.80 10.90 11.00 11.10 11.20 11.30 11.40 11.50 11.60 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Real Estate 15.00 1.46 • Total Real Estate 1.09 10.69 O NCREIF Fund Index-Open End Diversified Core(EVV) 14.26 1.62 0 NCREIF Fund Index-Open End Diversified Core(EVV) 0.67 11.37 Median 15.11 2.61 Median 2.17 11.50 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Real Estate 1.94 104.93 N/A 12.14 0.35 9.77 0.19 0.00 NCREIF Fund Index-Open End Diversified Core(EVV) 0.00 100.00 N/A 0.00 N/A 1._ Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 2.72 97.34 93.22 0.45 0.12 0.14 0.91 8.77 NCREIF Fund Index-Open End Diversified Core(EVV) 100.00 100.00 0.00 1.00 THE 44 [� BOGDAHN `'� GROUP. Performance Review American Core Realty Fund As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 American Core Realty Fund 763 -9 - - -2 - 9 16 777 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 American Core Realty Fund 725 -27 - - -8 - 40 47 777 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 30.08 - $133.70 28.00 $130.00 • $124.16 24.00 $120.00 � 7 20.00 $110.00 - 16.00 $105.70 E 12.00 OO O O $100.00 - re 8.00 $90.00 - 4.00 • $80.00 - 0.00 -4.00 $70.00 ■ -8.00 - $60.00 - 1 I I I I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 O American Core Realty Fund 3.40 (56) 12.27 (66) 12.27 (66) 11.91 (65) 13.29 (71) 10.55 (86) 0.19 (63) O NCREIF Property Index 2.59 (100) 11.00 (72) 11.00 (72) 11.00 (71) 12.67 (74) 10.92 (82) 3.36 (16) - American Core Realty Fund Median 3.54 13.35 13.35 13.13 15.11 12.10 2.17 - NCREIF Property Index Comparative Performance 1 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 American Core Realty Fund 3.36 (67) 2.49 (68) 2.50 (53) 2.58 (69) 2.72 (61) 3.02 (60) NCREIF Property Index 2.87 (75) 2.57 (63) 2.54 (49) 2.34 (85) 2.68 (61) 2.59 (84) IM U.S.Open End Private Real Estate(SA+CF)Median 3.91 3.10 2.52 2.79 2.88 3.43 Th THE 45 Li-_....0 BOGDAHN GROUP. Performance Review American Core Realty Fund As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 17.8 y 0.00 .0 Over c ° ° ° ° ° ° ° ° ° ° ° ° LL 12.0 Performance re Z` w 25.00 0 A 6.0 • _ ° ° ° 0 J 0 N re • 0 50.00 ° ° o.o v O o • a U -6.0 - • E 75.00 ° e ° e ° ° O a f0 Under w U -12.0 - Performance 1 1 1 1 1 1 1 1 1 1 100.00 1 1 I I I -11 -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 17.8 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 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 13 0 (0%) 3 (23%) 7 (54%) 3 (23%) Earliest Date X Latest Date p NCREIF Property Index 20 14 (70%) 1 (5%) 2 (10%) 3 (15%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.48 3.90 15.00 3.30 0 2.20 E 14.00 c 5 • .1 1.10 re re 13.00 • 0.00 • I I I I I I I I I 1 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 7.50 8.00 8.50 9.00 9.50 10.00 10.50 11.00 11.50 12.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • American Core Realty Fund 13.29 1.18 • American Core Realty Fund 0.19 10.40 O NCREIF Property Index 12.67 1.29 0 NCREIF Property Index 3.36 7.62 Median 15.11 2.61 Median 2.17 11.50 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture American Core Realty Fund 1.01 104.65 N/A 5.35 0.56 10.77 0.61 0.00 NCREIF Property Index 0.00 100.00 N/A 0.00 9.42 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 3.87 102.05 157.97 -3.89 -0.74 0.06 1.30 8.77 NCREIF Property Index 0.00 100.00 0.00 1.00 Th THE 46 [( BOGDAHN `� GROUP. Page Intentionally Left Blank 47 Performance Review Intercontinental As of September 30,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Intercontinental 1,876 - - - -4 - 31 37 1,940 Financial Reconciliation October 1,2012 To September 30,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2012 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2013 Intercontinental 1,668 - - - -29 - 86 215 1,940 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 30.08 $169.00 28.00 $160.00 - 24.00 $155.05 20.00 - $150.00 - '149.17 16.00 IL • im $140.00 - E 12.00 - C' w $130.00 - re 8.00 - 4.00 - $120.00 - 0.00 - $110.00 - -4.00 $100.00 - -8.00 - 1 1 -1-1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/10 3/11 9/11 3/12 9/12 3/13 9/13 • Intercontinental 3.66 (49)18.21 (17)18.21 (17)15.77 (22)15.74 (34) N/A N/A • NCREIF Fund Index-Open End Diversified Core(EVV) 3.56 (50)13.01 (61)13.01 (61)12.31 (63)14.26 (67)12.39 (38) 0.67 (61) - Intercontinental Median 3.54 13.35 13.35 13.13 15.11 12.10 2.17 NCREIF Fund Index-Open End Diversified Core(EV) Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Intercontinental 4.35 (27) 2.79 (58) 6.32 (6) 2.80 (49) 2.65 (62) 2.97 (69) NCREIF Fund Index-Open End Diversified Core(EVV) 3.86 (55) 2.68 (60) 2.33 (63) 2.77 (53) 2.58 (64) 2.82 (71) IM U.S.Open End Private Real Estate(SA+CF)Median 3.91 3.10 2.52 2.79 2.88 3.43 THE 48 , Li-_....0 BOGDAHN GROUP. Manager Performance Reviews [Hk: 49 BOGDAHN GROUP. Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of September 30,2013 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 N d 50.0 a 75.0 100.0 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 9/13 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count - International Equity 38 20 (53%) 5 (13%) 8 (21%) 5 (13%) - MSCI EAFE Index 38 0 (0%) 0 (0%) 19 (50%) 19 (50%) Manager composite returns used for chart population. \ THE BOGDAHN 50 GROUP. Relative Performance International Equity Since Inception Ending September 30,2013 Relative Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2o.0 . � I , - , . I 11II ..li I I I I I .1 II 1.1 1111 I I I I 11 I I I 11 1 I 1 9 I 1 1- -2.0 -4.0 -6.0 -8.0 i-\/ -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 9/13 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. IIMN THE 51 [ BOGDAHN GROUP. Performance Review RBC Global Asset Management As of September 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To September 30,2013 No data found. Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance $508.50 36.00 $480.00 32.00 - $440.00 $447.56 - 28.00 - O O $400.00 - O 24.00 - 0 0 $360.00 - • 20.00 - $320.00 C' $280.00 - e• 16.00 - • - • $240.00 - 12.00 • $202.66 • $200.00 8.00 O 4.00 ' $160.00 - $120.00 - orftigk._ 0.00 $80.00 - $40.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR O International Equity 8.88 (81) 27.46 (16) 27.46 (16) 26.05 (6) 13.68 (8) 13.09 (6) 12.86 (7) 1 I I I I I I I I 1 O MSCI EAFE Index 11.61 (37) 24.29 (43) 24.29 (43) 19.21 (40) 8.97 (45) 7.63 (58) 6.85 (65) 6/98 3/00 12/01 9/03 6/05 3/07 12/08 9/10 9/13 Median 10.90 23.16 23.16 18.54 8.73 8.06 7.43 - International Equity - MSCI EAFE Index Comparative Performance M 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 International Equity 0.67 (34) 8.77 (2) 6.92 (34) 11.25 (2) -6.04 (35) 17.61 (2) MSCI EAFE Index -0.73 (61) 5.23 (32) 6.60 (42) 6.98 (56) -6.85 (50) 10.98 (51) IM International Large Cap Value Equity(SA+CF)Median 0.00 4.23 6.19 7.26 -6.88 11.01 P THE 52 BOGDAHN GROUP. Performance Review RBC Global Asset Management As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 33.0 - Over 0.00 00 0000 00 YPerformance 0 0 22.0 - N 25.00 - 0 w 11.0 ■ 0 0 0 0 A 0 0 50.00 • 0 0 0.0 - O a /}�{ 0 0 0 f-% 0 c -11.0 - • E 75.00 0 0 0 0 0 0 e V 0 0 0 0 0 Under v 0 0 0 0 I. c -22.0 - Performance 100.00 0 Q I I 1 I I I -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • International Equity 20 10 (50%) 1 (5%) 2 (10%) 7 (35%) Earliest Date X Latest Date 0 MSCI EAFE Index 20 0 (0%) 2 (10%) 17 (85%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.82 14.00 • 0 12.00 - 12.00 E 10.00 10.00 - re 8.00 0 O 8.00 I I I I I I I - I I 6.00 15.60 16.00 16.40 16.80 17.20 17.60 18.00 18.40 18.80 19.20 19.60 23.00 24.00 25.00 26.00 27.00 28.00 29.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 13.68 19.12 • International Equity 12.86 28.20 O MSCI EAFE Index 8.97 16.09 • MSCI EAFE Index 6.85 23.85 Median 8.73 16.37 Median 7.43 23.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture International Equity 5.49 108.70 90.59 4.51 0.80 0.80 1.00 11.45 MSCI EAFE Index 0.00 100.00 100.00 0.00 0.59 1.00 11.37 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 6.83 115.68 96.95 5.54 0.91 0.61 1.09 16.78 MSCI EAFE Index 0.00 100.00 100.00 0.41 1.00 Th THE 53 [( BOGDAHN `� GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To September 30,2013 No data found. Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance 9.46 $330.00 8.00 $300.00 - 79.51 $270.00 - 66.48 6.00 ii 0 C' $240.00 - E 4.00 0 0 $210.00 re 0 0 0 2.00 0 $180.00 0 0 $150.00 - 0.00 p0 p0 $120.00 - -2.00 $90.00 - 1 I I I I I I I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/95 12/97 3/00 6/02 9/04 12/06 3/09 6/11 9/13 • Intermediate Core 0.67 (60) -0.96 (87) -0.96 (87) 2.41 (59) 2.97 (46) 4.21 (50) 5.74 (47) • Barclays Intermediate Aggregate Index 0.76 (40) -0.71 (76) -0.71 (76) 1.77 (86) 2.58 (68) 3.79 (78) 4.95 (89) - Intermediate Core Median 0.72 -0.27 -0.27 2.57 2.89 4.20 5.61 - Barclays Intermediate Aggregate Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Intermediate Core -2.23 (91) 0.21 (84) 0.42 (46) 1.88 (39) 1.73 (18) 1.06 (58) Barclays Intermediate Aggregate Index -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) 0.66 (81) IM U.S.Intermediate Duration(SA+CF)Median -1.76 0.33 0.40 1.74 1.46 1.17 imir THE 54 ( BOGDAHN `� GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 8.9 0.00 Over c 8.0 Performance g 0 o .°- 0 w 25.00 V6.0 °°�°• = 50.00 e 8000 0000 0000000000•r X4.0 0 $ 75.00 000 0000 0000 0000 0 . e re Under 100.00 1 r 2.0 ■ Performance 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2.0 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 8.9 Total 5-25 25-Median Median-75 75-95 Barclays Intermediate Aggregate Index(%) Period Count Count Count Count • Intermediate Core 20 0 (0%) 18(90%) 2(10%) 0(0%) • Over Performance 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 3.00 5.86 • 5.70 0 E 2.80 c 5.40 w w re X5.10 - 2.60 • • • • 1 I I I I I 2.15 2.20 2.25 2.30 2.35 2.40 2.45 2.50 2.55 2.60 2.65 2.70 2.73 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 2.97 2.66 • Intermediate Core 5.74 2.88 O Barclays Intermediate Aggregate Index 2.58 2.19 • Barclays Intermediate Aggregate Index 4.95 2.56 Median 2.89 2.36 Median 5.61 3.11 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Intermediate Core 0.49 112.26 108.29 0.17 0.78 1.24 1.08 1.43 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 1.00 1.21 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Intermediate Core 0.88 110.01 94.49 0.63 0.86 1.80 1.03 1.66 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 1.00 1.38 THE 55 r ( BOGDAHN `� GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv(TGBAX) 20 Quarters Rolling Periods As of September 30,2013 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 25.0 Y 1 N 50.0 d a NN� 75.0 _ 100.0 3/03 9/03 3/04 9/04 3/05 9/05 3/06 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count - Templeton GI Bond;Adv(TGBAX) 43 43 (100%) 0 (0%) 0 (0%) 0 (0%) - Citigroup World Government Bond 43 22 (51%) 17 (40%) 1 (2%) 3 (7%) Manager composite returns used for chart population. THE 56 [1 BOGDAHN `� GROUP. Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending September 30,2013 Relative Performance 9.0 8.0 7.0 6.0 5.0 4.0 3.0 II 2.0 1 1.0 I w 11111 I� I II 1 �� I ��!jIii11i11i1i1•i.i.Ii.I11I.i1iIIiiiI1•i1iI1 I I I , I �. . I �� iihldiii111i 74 0.0 11.1 ..I, 1 _ i I1il i -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0– 2/97 11/97 8/98 5/99 2/00 11/00 8/01 5/02 2/03 11/03 8/04 5/05 2/06 11/06 8/07 5/08 2/09 11/09 8/10 5/11 2/12 11/12 9/13 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. 111.\ THE 57 [ BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2012 To September 30,2013 No data found. Peer Group Analysis-IM Global Fixed Income(MF) IMII Cumulative Performance 13.56 $440.00 - $400.00 11.00 80.56 8.00 - $360.00 - - ■ $320.00 5.00 NM E O O • $280.00 - $242.02 2.00 - O $240.00 - V -1.00 - 0 $200.00 - -4.00 - - 0 $160.00 - " $120.00 - 401\a■mb"..f -7.00 ■ $80.00 - 1 I I I I I I I I 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/97 12/98 9/00 6/02 3/04 12/05 9/07 6/09 3/11 9/13 • Templeton GI Bond;Adv(TGBAX) 1.07 (47) 3.52 (4) 3.52 (4) 8.27 (7) 4.70 (15) 7.08 (14) 9.75 (9) O Citigroup World Government Bond 2.88 (3) -4.60 (86) -4.60 (86) -0.73 (96) 1.02 (83) 1.99 (92) 4.25 (86) - Templeton GI Bond;Adv(TGBAX) Median 0.95 -1.39 -1.39 2.95 2.40 3.93 5.84 Citigroup World Government Bond Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Mar-2012 Templeton GI Bond;Adv(TGBAX) -2.73 (32) 1.41 (9) 3.83 (4) 5.40 (13) -0.99 (97) 7.20 (5) Citigroup World Government Bond -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (75) 0.92 (39) -0.51 (100) IM Global Fixed Income(MF)Median -3.25 -0.41 1.12 3.45 0.58 2.45 THE 58 P L.- BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30,2013 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 15.0 Over c 0.00 0 0 9 9 0 0 0 0 0 0 0•m Performance f0 0 •1-12.0 0 i5 o v 25.00 - 0 0 0 O 0 0 0 0 0 0 > • $ 0 0 a 9.0 e O 0 50.00 0 v v 0 mMili m 6.0 x O 0 E 75.00 v O O 0 0 0 0 0 0 co 3.0 Under 100.00 1 1 I I I r a 0.0 - Performance 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 9/13 c 1 i i 1 1 1 1 1 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 15.5 Total Period 5-25 25-Median Median-75 75-95 Citigroup World 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 0 Citigroup World Government Bond 20 7(35%) 3(15%) 1 (5%) 9(45%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 5.20 O 10.00 O 3.90 - 8.00 c 2.60 .- . 5 v 6.00 re re 1.30 0 0 4.00 I I I I I I I I I I I 5.20 5.60 6.00 6.40 6.80 7.20 7.60 8.00 8.40 8.80 9.20 9.60 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) 4.70 9.13 • Templeton GI Bond;Adv(TGBAX) 9.75 9.60 O Citigroup World Government Bond 1.02 5.43 0 Citigroup World Government Bond 4.25 7.37 Median 2.40 5.65 Median 5.84 7.55 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 8.10 141.44 90.50 4.17 0.48 0.54 0.80 6.45 Citigroup World Government Bond 0.00 100.00 100.00 0.00 4.u0 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) 8.92 119.46 59.34 7.30 0.60 1.01 0.62 6.10 Citigroup World Government Bond 0.00 100.00 100.00 0.00 1.00 4.67 MTHE 59 [� BOGDAHN `� GROUP. Page Intentionally Left Blank 60 Benchmark Historical Hybrid Compositions Total Fund As of September 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 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 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(EVV) 10.00 Total Fixed Income Policy Allocation Mandate Weight(%) Total Domestic Equity Policy Nov-2000 Allocation Mandate Weight(%) Barclays Aggregate Index 100.00 'un-200? 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 T Hk: 61 � BOGDAHN GROUP. Disclosures Total Fund As of September 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. [Hk: 62 BOGDAHN GROUP. The Bogdahn Group Your Service Team Contact Information Nick Rowlands Dave West Department: Performance Measurement Department: Consultant Team a Tit Performance Analyst Senior Consultant Direct Phone: 407-520-5355 Direct Phone: 863-904-0858 NickR @bogdahngroup.com DaveW @bogdahngroup.com John Thinnes Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road,Suite 600 Orlando,Florida 32811 Consultant ' Phone: Direct Phone: 863-904-0846 Service Team Group Email: ServiceTeam003 @bogdahngroup.com JohnT@bogdahngroup.com THE cBOGDAHN � GROUP. 63 Compliance Checklist Total Fund Winter Springs GE As of September30,2013 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. Manager Compliance: Vanguard RBC Global Galliard TIPS 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. ✓ ✓ ✓ ✓ II Templeton American RE Intercontinental ■ Manager Compliance: 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. ✓ ✓ ✓ 64 Compliance Checklist Total Fund As of September 30,2013 65 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 66 [fTIIE BOGDAHN 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. TIIE g7 \--" BOGDAHN GROUP. THE OGrDAHN GROUP. Simplijiin your:iiiestiHLiit and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Milwaukee I Cleveland I Dallas