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HomeMy WebLinkAbout2014 02 27 Regular 606 4th Quarter Investment Return Report Winter Springs General Employees General Plan and Trust Investment Performance Review 4th Quarter 2013 limiek THE BOGDAHN GROUP® W W W.B O G D A H N G RO U P.C O M sinrplifpirrg i'rrur invesbuent and Jirlucim� rlecisiass 4th Quarter 2013 Market Environment 1 THE 1 BOGDAHN �`� GROUP The Market Environment Major Market Index Performance As of December 31,2013 • Another banner quarter,especially for Large-and Micro-cap stocks,provided Quarter Performance the icing on the cake in a tremendous year for domestic equities of all types. MSCI ACwxUS 4.8% Equity benchmarks posted a series of all-time highs in December, which MSCI EAFE I 5.7% culminated in a year in which most broad market U.S. indexes posted MSCI Emerg Mkts 11.9% returns ranging from 26.0% (NYSE Composite)to 41.2%(Russell Microcap Value Index). S&P 500 10.5% Russell 3000 I 10.1% • The fourth quarter was somewhat bifurcated with strength coming primarily Russell 1000 1 10.2% from market extremes. Mega-cap stocks across all styles posted healthy Russell MidCap 18.4% returns with the Russell Top 200 Growth Index returning 11.5% during the Russell 2000 t M I8.7% quarter.The Russell Top 200 Value Index was also strong,returning 10.6%. Double digit returns also posted in micro-caps with the Russell Microcap Barclays US Agg -0.1% Index returning 10.3%. Mid-caps, despite posting attractive returns, Barclays US Govt 0.7% L significantly lagged their larger and smaller brethren, with returns ranging Barclays US TIPS 2.0% from 8.2%to 8.6%depending on style. Barclays MBS -0.4% C Barclays Corp IG I 1.1% • Non-U.S. equities ended the fourth quarter in positive territory, but lagged - domestic equities similar to the second quarter. Each month of the quarter 3-Month T-Bill 0.0% ended in positive territory and volatility remained low. For 2013 as a whole, developed international equities (MSCI EAFE Index) performed strongly, a.o% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% posting their best performance since 2009. Emerging equities, on the other 1-Year Performance hand, ended the year in negative territory, as fears persisted about the impact of Fed tapering. MSCI Acwxus s. MSCI EAFE 23.3% • After posting a positive return in the third quarter, the U.S. bond market, MSCI Emerg Mkts 2.3% II represented by the Barclays U.S. Aggregate Bond Index, fell 0.1% in the fourth quarter of 2013.The modest decline was the result of weakness in the S&P 500 32.4% U.S. Government, U.S. TIPS, and the Mortgage Backed Securities (MBS) Russell 3000 _ 33.6% sectors. For the full year, U.S. bonds fell 2.0%as returns were negative in Russell 1000 33.1% three of the four quarters. The poor performance was broad-based as all Russell MidCap 34.8% three major sectors generated negative returns lead by U.S.TIPS and U.S. Russell 2000 M 38.8% Government bonds,which fell 8.6%and 2.6%,respectively. Barclays US Agg -2.0% . Barclays US Govt -2.6% E Barclays US TIPS -8.6% I Barclays MBS -1.4% Barclays Corp IG -1.5% L 3-Month T-Bill 0.1% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Source:Investment Metrics ME 2 ( , BOGDAHN ♦ ~-" GROUP. The Market Environment Domestic Equity Style Index Performance As of December 31,2013 • All three months during the quarter were strong for equities of all Quarter Performance-Russell Style Series capitalizations and styles. The two events that propelled equity markets 3000 Value 10.0% higher were the congressional budgetary funding agreement in mid-October 3000 Index 10.1% and the Fed's decision to taper the bond purchase program, reducing the 3000 Growth 10.2% monthly stimulus by$10 billion ($85 to$75 billion per month) in December. These two factors improved investor visibility and drove markets higher 1000 Value W 10.0% • There was no true style theme during the quarter. Growth slightly outpaced 1000 Index 10.2% value in larger capitalizations, but value outperformed growth in mid and 1000 Growth 10.4% small capitalizations. This is slightly counterintuitive for this point in the _,=___■il . market cycle and is most likely the byproduct of fed tapering,which should Mid Cap Value 8.6% result in rising interest rates over time. A rising rate environment improves the profitability of larger cap financials, which tend to dominate the value Mid Cap Index 8.4% benchmarks. Mid Cap Growth 8.2% • Equity volatility continues to be below average.The CBOE Market Volatility 2000 Value 9.3% Index (VIX) never traded above 18 points. There were times during the 2000 Index 8.7% quarter when the Index traded between 13 to 15 points. A reading of 22 2000 Growth _ 8.2% constitutes the long-term trend line,so these figures are well below average. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% • Economic sentiment has improved to the point where all economic indicators 1-Year Performance-Russell Style Series are now pointing positive. The unemployment rate fell from 7.3% to 7.0% during the period (the lowest figure since 2008) and inflation continues to 3000 Value 32.7% trend below the Fed's target rate of 2%.Consumer confidence rebounded in 3000 Index 33.6% December to its highest level since June. Upward growth rate revisions in 3000 Growth 34.2% the fourth quarter from 3.6%to 4.1%were another positive catalyst. 1000 Value 32.5% • Attractive valuations are becoming tougher to find.The S&P 500 now trades at close to 16x forward earnings,which places it near its long-term historical 1000 Index 33.1% average, but at a premium when compared to the average over the trailing 1000 Growth 33.5% ten-year period. From a capitalization perspective, large-caps remain cheap relative to their smaller cap brethren.As of December 31,2013,the Russell MidCap Value 33.5% 2000 Index trades at approximately 22x forward P/E, compared to 14x and MidCap Index 34.8% 18x for the Russell 1000 Value and Growth Index, respectively. MidCap Growth 35.7% 2000 Value 34.5% 2000 Index 38.8% 2000 Growth _, 43.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Source:Investment Metrics 3 If BOGDAHN ~� GROUP. The Market Environment GICS Sector Performance&(Sector Weight) As of December 31,2013 • All ten Russell 1000 sectors produced gains for the quarter,with Industrials Russell 1000 I ❑Quarter ❑1-Year) and Information Technology leading the way. Six of the ten sectors Consumer Disc(13.4%) M 1 10.6% showcased double-digit returns. Utilities and Telecom Services, two I 44.6% defensive sectors, significantly lagged during the period. This dynamic was Consumer Staples(9.0%) - 81% I 27.0% also evident over the full year,with cyclical sectors(Consumer Discretionary, -- 7.9V) Industrials, Info Tech) among the big winners, with defensive sectors Energy(9.6%) 1 25.6% (Utilities, Telecom Services)trailing. Financials(16.9%) 9.5% I 33.1% • A similar dynamic was evident in small caps,but dispersion among sectors Health Care(12.6%)- 9.8% was far less pronounced. Traditional "growth" sectors, such as Industrials, - 1 41.9% Materials and Consumer Discretionary, outperformed as they did in large- Industrials(11.5%) 13.4% I 42.1% caps, but unlike their large-cap brethren, Utilities and Telecom Services posted returns that were in-line with the market leaders. However,this tight Info Technology(18.2%) 12.7i 29.6% range did not materialize over the full year. Health Care, led by Biotech, 10.3% greatly outperformed the Index as a whole.Also,the growth/value disparity Materials(3.7%) 1 244% wasn't as pronounced in small-caps. Consumer Staples did just as well as Telecom Services(2.2%) 6.8% Consumer Discretionary and Telecom Services was one of the strongest 1 14.4% performers during the full year. Utilities(2.9%) 2.9% I 14.7% • On a absolute valuation basis when viewed across a ten-year trailing period 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% ending December 31, 2013, Energy, Financials and Telecom are the most Russell 2000 •Quarter ❑1-Year attractively valued areas within the S&P 500,each trading at approximately 13-14 times forward earnings per share. By contrast, Consumer Consumer Disc(13.7%) ' 9'0% 46.m% Discretionary and Staples are the most expensive at 17-19 times. Relative 5.9V0 to the ten-year average, only two sectors are currently trading at below Consumer Staples(3.8%) 45.7% average valuations: Telecom and Information Technology. I 6.3% Energy(5.5%) I 30.3% • Broad-based performance was also exhibited at the stock level within large- Financials(22.8%) I 9.1% caps, as nine of ten Russell 1000 Sectors appear on the individual top-10 - 30.7% stock performers list. The opposite was the case in small-caps, where the Health Care(13.2%) 8.6% 1 54.1% top-10 stocks during the period were dominated by Biotech names within the - • 11.20/0 Health Care segment.Four of the top five performers came from this area. Industrials(14.5%) 1 43.7% Info Technology(17.8%) . 7.6% • To showcase the volatility and binary nature of Biotechs, five of the seven 1 44.6% worst performing stocks during the quarter were from this industry within the Materials(4.9%) 11.2% Health Care sector,including four companies that specialize in Therapeutics. - 24.5% Telecom Services(0.8%) I 5.3% I 29.3% Utilities(3.0%) • 6.2% I 18.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Source:Morningstar Drrect THE (( , 4 BOGDAHN ♦ ~-" GROUP. The Market Environment Top 10 Index Weights&Quarterly Performance for the Russell 1000&2000 As of December 31,2013 El Russell 1000 ' -Return Return ear Sector sell 2000 Weight 1-Qtr 1-Year Return Return Sector Apple Inc 2.77% 18.4% 8.1% Information Technology CoStar Group,Inc. 0.32% 9.9% 106.5% Information Technology Exxon Mobil Corporation 2.37% 18.4% 20.1% Energy AthenaHealth, Inc. 0.30% 23.9% 83.5% Health Care Microsoft Corporation 1.65% 13.3% 44.3% Information Technology Acuity Brands Inc 0.28% 19.0% 62.5% Industrials Google, Inc.Class A 1.59% 27.9% 58.4% Information Technology Middleby Corporation 0.27% 14.7% 87.0% Industrials General Electric Co 1.53% 18.3% 37.9% Industrials Isis Pharmaceuticals 0.27% 6.1% 281.6% Health Care Johnson&Johnson 1.35% 6.4% 34.6% Health Care Ultimate Software Group,Inc. 0.25% 3.9% 62.3% Information Technology Chevron Corp 1.27% 3.7% 19.3% Energy PTC Inc 0.25% 24.3% 57.2% Information Technology Procter&Gamble Co 1.17% 8.5% 23.7% Consumer Staples Align Technology, Inc. 0.25% 18.8% 105.9% Health Care JPMorgan Chase&Co 1.16% 14.0% 36.7% Financials Brunswick Corporation 0.25% 15.7% 58.7% Consumer Discretionary Wells Fargo&Co 1.15% 10.7% 36.7% Financials CNO Financial Group,Inc. 0.24% 23.1% 91.1% Financials .1112 _11= _IMIIM__IIIEF_ -ussell 100. Sprint Corp Series 1 0.05% 72.9% N/A Telecommunication Services Amyris,Inc. 0.01% 129.0% 69.6% Energy 3D Systems Corporation 0.05% 72.1% 161.3% Information Technology Horizon Pharma Inc 0.02% 127.5% 227.0% Health Care SolarCity Corp 0.01% 64.2% 376.3% Industrials AK Steel Holding Corporation 0.07% 118.7% 78.3% Materials Endo Health Solutions Inc 0.04% 48.5% 157.2% Health Care Galena Biopharma Inc 0.03% 117.5% 224.2% Health Care Valero Energy Corporation 0.14% 48.3% 65.0% Energy ZELTIQ Aesthetics Inc 0.02% 109.6% 308.4% Health Care Janus Capital Group,Inc. 0.00% 46.4% 48.4% Financials MiMedx Group,Inc. 0.05% 109.6% 127.6% Health Care HomeAway Inc 0.01% 46.2% 85.8% Consumer Discretionary Universal Insurance Holdings,Inc. 0.02% 109.2% 251.1% Financials Nu Skin Enterprises, Inc.Class A 0.04% 44.7% 280.0% Consumer Staples ModusLink Global Solutions,Inc. 0.01% 108.8% 97.2% Information Technology United States Steel Corporation 0.02% 43.5% 24.8% Materials Career Education Corporation 0.02% 107.3% 62.3% Consumer Discretionary United Therapeutics Corporation 0.03% 43.4% 111.7% Health Care Corcept Therapeutics,Inc. 0.01% 101.9% 124.5% Health Care B• Bottom 10 Performing Stocks(by Quarter) Russell 1000 Weight Return Return Sector sell 2000 Weight 1-Qtr 1-Year Return Return Sector Ariad Pharmaceuticals 0.01% -62.9% -64.4% Health Care OCZ Technology Group Inc. 0.00% -97.2% -98.1% Information Technology NII Holdings Inc 0.00% -54.7% -61.4% Telecommunication Services Dolan Co 0.00% -69.5% -82.3% Industrials Nationstar Mortgage Holdings Inc 0.00% -34.3% 19.3% Financials ImmunoCellular Therapeutics Ltd 0.00% -64.0% -51.8% Health Care Cobalt International Energy,Inc. 0.02% -33.8% -33.0% Energy Coronado Biosciences Inc 0.00% -62.5% -41.7% Health Care Fusion-io Inc 0.00% -33.5% -61.1% Information Technology Sarepta Therapeutics Inc 0.05% -56.9% -21.0% Health Care Rackspace Hosting,Inc. 0.02% -25.8% -47.3% Information Technology Stemline Therapeutics Inc 0.01% -56.7% N/A Health Care Pharmacyclics,Inc. 0.03% -23.5% 83.1% Health Care Onconova Therapeutics Inc 0.00% -56.6% N/A Health Care Rayonier, Inc. 0.03% -23.5% -15.8% Financials NII Holdings Inc 0.03% -54.7% -61.4% Telecommunication Services Tesla Motors, Inc. 0.07% -22.2% 344.1% Consumer Discretionary Saratoga Resources, Inc. 0.00% -52.1% -67.8% Energy EXCO Resources, Inc. 0.00% -20.5% -19.2% Energy Tower Group International Ltd 0.01% -51.7% -80.4% Financials Source:Morningstar Drrect �10•S\ BOGDAHN THE 5 L.---, GROUP. The Market Environment International and Regional Market Index Performance(Country Count) As of December 31,2013 Quarter Performance I ❑USD ❑Local Currency • Non-U.S.equity markets maintained the momentum from the third quarter in most regions, ending the year with solid positive returns, with only a few AC world x US(43) 4.8% exceptions in Eastern Europe and Latin America. 5.8% WORLD x US(22) 5.6 • Peripheral European countries (Greece, Spain, Ireland, Italy) were again 6.5% among the best performing markets during the fourth quarter. Egypt was the EAFE(21) .70/c. top absolute performer for the quarter,up 19.4%. 6.4% Europe&ME(16) 7.9/0 • Equities in Japan posted their best calendar-year return (+54.8% in local s.o% yen-dominated terms)since 1972. Pacific(5) 1.6% 7.2% • Emerging equities were not invited to the party, in particular stocks in India Emerging Mkt(21) s% and Brazil, which were both negatively affected by local currency 3.0% depreciation during 2013. India's equity benchmark actually ended the year EM Europe&ME(8) -1.5% -0.s% in positive territory in local terms, but U.S. investors lost about 4%. China's equity market recovered from being down about 10%after the first half of the EM Asia(8) 3.60/0 year,to ending the year in positive territory,up 4%. -2.30/0 EM Latin Amer(5) 1.4% • Once again, currency moves benefitted U.S. investors in most developed , overseas markets,with one big exception--Japan.Japan was up almost 10% a.o% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% in local terms for the quarter, but U.S. investors received only 2.3%,as the 1-Year Performance 1 ■USD ❑Local Currency yen continued to weaken relative to the U.S. dollar. On the year,the yen depreciated 18%relative to the USD. AC world x US(43) 15.8% 1 20.6% • Information Technology and Health Care sectors performed strongly across WORLD x us(22) 21.6% 9Y p 9 Y 1 26.0% all non-U.S. equity regions, while Telecommunication Services showed a large differentiation between developed and emerging indexes.The Telecom EAFE(21) 23.3% 9 p 9 9 1 27.5% sector was the top performing sector in developed regions, while those stocks were close to the bottom for emerging regions.All sectors within the Europe&ME(16) .1%s.s% developed benchmark(MSCI EAFE)ended the quarter and year in positive 18.4% territory. For the MSCI EM Index, Consumer Staples and Energy were in Pacific(5) I 38.2% negative territory for the fourth quarter, and Information Technology, -23% n Industrials, Utilities and Telecom had negative returns for the year. Emerging Mkt(21) 3.8% EM Europe&ME(8) -3.9 2.4% EM Asia(8) ml 2.3% 5.6% EM Latin Amer(5) -13.2% . -4.3% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Source:MSCI Global Index Monitor, Returns are gross ME 6 ( ) BOGDAHN ♦ ~." GROUP. The Market Environment U.S. Dollar International Index Attribution&Country Detail As of December 31,2013 Sector Weight Quarter Return 1-Year Return Country Weight •••. - - • - - Consumer Discretionary 11.9% 5.4% 35.6% United Kingdom 22.0% 15.9% 7.4% 20.7% Japan 20.9% 15.1% 2.3% 27.4% Consumer Staples 10.9% 3.5% 17.4% France 10.0% 7.2% 6.2% 27.7% Energy 6.8% 6.6% 12.5% Germany 9.5% 6.9% 13.3% 32.4% Financials 25.6% 6.2% 24.9% Switzerland 8.9% 6.4% 4.3% 27.6% Australia 7.5% 5.4% -0.8% 4.3% Health Care 10.0% 7.4% 28.9% Spain 3.4% 2.4% 11.6% 32.3% Industrials 12.9% 5.1% 25.2% Sweden 3.2% 2.3% 5.2% 26.0% Information Technology 4.5% 8.1% 27.1% Hong Kong 2.8% 2.1% 3.4% 11.1% Netherlands 2.7% 2.0% 8.7% 31.8% Materials 8.0% 3.0% 3.1% Italy 2.2% 1.6% 10.7% 21.3% Telecommunication Services 5.7% 11.7% 47.0% Singapore 1.5% 1.1% 0.7% 1.7% Utilities 3.5% 1.7% 14.7% Belgium 1.2% 0.9% 8.1% 28.8% Total ■00.0% Mula. -IMF Denmark 1.2% 0.9% 10.3% 25.9% Finland 0.9% 0.7% 11.9% 48.0% _ _ Norway 0.8% 0.6% 5.9% 10.4% Israel 0.4% 0.3% 6.3% 11.9% Consumer Discretionary 10.8% 4.9% 6.0% Ireland 0.3% 0.2% 11.3% 41.7% Consumer Staples 9.9% 2.5% -3.6% Austria 0.3% 0.2% 3.3% 14.3% Energy 9.1% 3.3% -10.3% Portugal 0.2% 0.1% 1.3% 12.3% New Zealand 0.1% 0.1% -4.0% 12.2% Financials 26.8% 5.2% -3.8% otal EAFE Countries AL 100.0% 72.2% Health Care 7.8% 7.3% 9.2% Canada 7.1% 4.2% 6.4% Industrials 11.2% 5.2% -0.8% otal Developed Countries 79.3% Information Technology 6.7% 7.9% 14.3% China 4.1% 3.8% 4.0% Korea 3.3% 4.0% 4.2% Materials 8.6% 2.0% -16.7% Taiwan 2.4% 4.3% 9.8% Telecommunication Services 5.8% 8.2% -1.2% Brazil 2.2% -5.5% -15.8% Utilities 3.3% 2.2% -2.7% South Africa 1.5% 2.4% -5.8% Russia 1.3% 10.3% -3.8% Total 100.0% Russia 1.3% 0.4% 1.4% Mexico 1.1% 8.2% 0.2% CEEM Malaysia 0.8% 5.4% 7.7% Consumer Discretionary 8.9% 2.5% 4.8% Indonesia 0.5% -4.7% -23.1% Consumer Staples 8.6% -1.6% 9.6% Thailand 0.4% -10.4% -14.3% Poland 0.4% 3.9% 3.6% Energy 11.3% -2.6% 7.5% Chile 0.3% -6.9% -21.4% Financials 26.7% 1.0% 11.7% Turkey 0.3% -14.1% -26.5% Health Care 1.7% 4.6% 1.6% Colombia 0.2% -11.1% -21.1% Industrials 6.5% 2.8% -7.0% Philippines 0.2% -5.0% -2.0% Greece 0.1% 10.1% 52.7% Information Technology 16.0% 7.9% -13.6% Peru 0.1% 3.0% -29.8% Materials 9.7% 2.2% 5.4% Hungary 0.1% -6.3% -5.8% Telecommunication Services 7.4% 0.1% -0.5% Czech Republic 0.1% 1.0% -8.1% Egypt 0.0% 19.4% 8.2% Utilities 3.4% 4.7% -5.7% Total Emerging Countries 20.7% 1.9% -2.3% Total 100.0% Total ACWIxUS Countries 100.0% 4.8% 15.8% Source:MSCI Global Index Monitor, Returns are gross in USD THE 7 L~ BOGDAHN GROUP The Market Environment Domestic Bond Sector&Broad/Global Bond Market Performance(Duration) As of December 31,2013 • After posting positive returns in the previous quarter,the U.S. bond market, Quarter Performance represented by the Barclays U.S.Aggregate Bond Index, declined 0.1% in AAA(5.14) -0.5% I the fourth quarter. The anemic returns, were the result of longer-dated AA(5.34) 0.2% bonds falling as market participants remained concerned about the possibility of 'tapering' in the Federal Reserve's quantitative easing (QE) A(6.71) o.s% program. As it turned out, on, December 18t, the Federal Reserve did Baa(7.06) _1 1.3% 3.6% announce that it would reduce the level of monthly open market security U.S.High Yield(4.16) I purchases from$85 billion to $75 billion. The news of a"tapering" in bond - purchases served to lift Corporate Bonds, which seemed to benefit from a U.S.Treasury(4.99) o.a% greater level of clarity in monetary policy. U.S.Mortgage(5.62) -0.4% I U.S.Corporate IG(6.80) I 1.1% • Within the investment grade universe, fourth quarter performance varied U.S.TIPS(6.83) -2.0% dramatically across sectors. Investment grade Corporate Bonds lead all sectors, returning 1.1%, followed by Mortgage Backed Securities (-0.4%), and U.S. Treasuries(-0.8%). U.S. TIPS were the worst performing sector, Aggregate(5.55) -0.1% falling -2.0% for the fourth quarter. For 2013, all major sectors fell with Intermediate Agg(4.42) -0.1% Mortgage Backed Securities (-1.4%) showing the smallest decline. A Global Agg x US(6.67) -0.7P/o _ reduction of inflation expectations resulted in U.S.TIPS generating the worst sector performance(-8.6%). Multiverse(6.09) I -0.3%. i i , -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% • The trend of low quality bonds outperforming higher quality securities 1-Year Performance continued in the fourth quarter. Bonds rated Baa rose 1.3% followed by A-rated(+0.9%),AA-rated(0.2%),and AAA-rated(-0.5%). AAA(5.14) -21% MI AA(5.34) -2.0% vs • After outperforming the broad market for three consecutive quarters, A(6.71) -1.9% I - 1 shorter-duration bonds,represented by the Barclays Intermediate Aggregate Bond Index, performed in line with the longer-duration, Aggregate Index Baa(7.06) z.o% 7.4% during the fourth quarter.On a trailing one-year basis,the Intermediate Index U.S.High Yield(4.16) outpaced the Aggregate Index by 100 basis points. U.S.Treasury(4.99) -2.7% U.S.Mortgage(5.62) -1.4% I • High yield bonds continued their strong performance outpacing investment - grade credit for the sixth consecutive quarter (3.6% versus 1.1%). The U.S.Corporate IG(6.80) 5 continued demand for yield resulted in securities rated below investment U.S.TIPS(6.83) -8'6%= 1 grade outperforming investment grade credit by 890 basis points (7.4% versus-1.5%)in 2013. Aggregate(5.55) -2.0% I • Returns for international bonds, represented by the Barclays Global Intermediate Agg(4.42) 1.0% Aggregate ex U.S. Index, lagged their domestic bond counterparts (-0.7% Global Agg x US(6.67) -3.1%-_ versus-0.1%). For the year,international bonds trailed domestic markets by Multiverse(6.09) -2.2% 110 basis points. ' -12.0% -7.0% -2.0% 3.0% 8.0% Source:Barclays Capital Live THE 8 '' BOGDAHN - GROUP. The Market Environment Market Rate&Yield Curve Comparison As of December 31,2013 • In the fourth quarter of 2013, domestic bonds markets continued their 1-Year Trailing Market Rates lackluster performance, falling 0.2%to end the year down 2%. The fourth 350 _ quarter began with investor's focused on the fiscal standoff in Washington, Fea •Funas Rate TED Spread . .3-Month Libor the prospects of a reduction in the Federal Reserve's QE program,and the 3.00 —BAA OAS —loyr Treasury �10yr TIPS pending replacement of outgoing Chairman Ben Bernanke. 2.50 - ■ In early October, President Obama nominated Janet Yellen to be the next Federal Reserve Chairman. Her nominated was generally well-received and 2.00 - she was expected to receive confirmation by the U.S.Senate in early 2014. On October 17h, Congress passed a bill to raise the debt ceiling and 1.50 - re-open the government agencies that had been closed. The bill would likely fund federal government operations through early 2014. Finally, on 1.00 - December 18th, the Federal Reserve announced that it would reduce the level of monthly, open market security purchases from $85 billion to $75 0.50 - billion. The Fed also indicated additional reductions were possible in 2014, 0.00 but would be dependent on future economic data. 0.50 • Treasury rates in maturities two years or less were mostly unchanged during the fourth quarter. Yields for maturities beyond two-years rose during the -1.00 quarter. In basis point terms,the widening was roughly the same for bonds Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 in the 5 to 30-year maturity range. One of the few silver linings to the rise in Treasury Yield Curve yields has been the steepening of the yield curve. This allows investors to 4.00 - extend maturities and realize a sizable increase in yield. The increase in "spread"between key points on the yield curve is shown below. X12/30/2011 X12/31/2012 X9/30/2013 —X12/31/2013 3.50 2-5 Year U.S.Treasury +137 basis points 2-5 Year U.S.Treasury +207 basis points 3.00 2-10 Year U.S.Treasury +266 basis points. 2.50 - ■ For domestic bond investors,it was a challenging year marked by periods of volatility and rising rates, especially in intermediate- and longer-dated 2.00 securities.One silver lining to the poor performance has been higher yields relative to those of the past two years and a steeper yield curve. 1.50 • The rise in interest rates has pushed rates to more attractive levels as 1.00 longer-dated maturities now offer a yield that is in excess of the current rate of inflation. That said, investors should remain cautious as the absolute level of rates remains well-below the historical average. 0.50 0.00 - i' 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source:US Department of Treasury,FRED(Federal Reserve of St.Louis) THE 9 (� ) BOGDAHN Nair GROUP. The Market Environment Plan Investment Performance Quarter Ended: December 2013 Portfolio Attribution (Reference pages 21-23 of The Bogdahn Group December 2014 Report) Market Review— "Clearly,sustained low inflation implies less uncertainty about the future,and lower risk premiums imply higher prices of stocks and other earning assets.We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past.But how do we know when irrational exuberance has unduly escalated asset values,which then become subject to unexpected and prolonged contractions..."—Alan Greenspan,December 1996. It is appropriate to revisit the comments made by former Fed Chairman Alan Greenspan when reviewing recent history in the domestic stock markets. 2013 was a monumental year for equities.The S&P 500 had its best return(32.39%)since 1995,and 2013 marked the fourth consecutive year the Index ended higher. Mid Cap stocks fared even better, as the Russell Mid Cap Index returned 34.76% in 2013. The index just experienced its sixth consecutive positive quarterly return, which is the longest streak of positive performance since Greenspan's comments were made in December 1996. Finally, let's not exclude small caps.While The Russell 2000 Index's 8.72% return in the fourth quarter of 2013 may have lagged some other key benchmarks during the period,the index finished atop the heap in 2013,with a 38.82%overall return. First,what does history tell us?Since 1926,there have been nine years in which the S&P 500 has ended with a price return greater than+30%.Stocks gained ground the following year six times,with an average gain of+21.5%.In three of the following years stocks declined,with an average drop of-9.5%,but one of the declines(in 1937) resulted from austere fiscal policy conditions which aren't an issue in the current environment.There is ample evidence to suggest that domestic stocks will remain the preferred habitat for investors.These include: • The prospect of the U.S.reaching energy independence within 6-7 years due to the impacts of fracking.This should improve our trade deficit and lower manufacturing costs,which will"onshore" many industrial jobs after years of exporting jobs overseas. • The effect of a manufacturing revival will have on the need for skilled labor,of which the U.S.has a greater supply relative to most countries. • Unattractive alternatives. Bond yields look unappealing at current rates, especially on a risk-adjusted basis.The Eurozone economies remain lackluster, and emerging economies could see currency devaluation if the U.S.initiates full-scale monetary tapering. • The number of publicly traded companies has been reduced in half since the mid-90's.Continued share buybacks further reduce this number.More dollars chasing fewer stocks equals higher prices. • Despite pockets of the market which trade at exorbitant prices(i.e.certain areas within the Tech sector),the market as a whole remains reasonably valued when using history as a guide.The S&P 500 currently trades at 15 times forward 2014 earnings,which is below the 60-year average. There are'soft'indications that the strong run might be due for a correction.A recent survey of investment advisors showed that those with bullish sentiment reached a six- year high of 59.6%.Those with bearish views stood at a 26-year low of only 14.1%.Typically,surveys with this kind of one-sided sentiment tend to be leading indicators that the opposite will happen,but all the fundamental signs remain positive for equities,at least in the near term. The 10 year US Treasury yield averaged 2.33%in 2013 after averaging 1.78%in 2012. Many of the reasons behind the bond sell-off earlier in the year remain in place,such as the fear regarding the eventual unwinding of the Fed's multiyear QE program and better macroeconomic indicators.However,it should be noted that the real yield on the 10 year has dramatically reversed course and is now closer to long term averages. "Risk assets"continued to perform well to year end. Returns on higher yielding securities continue to trump higher quality assets,and have provided a materially positive return offset for bond investors in a rising rate environment. Plan attribution: • Plan assets earned($2,407,731)from investments for the 1st fiscal quarter 2014,of which$139,489 came from interest income and$2,268,242 from market appreciation. • Plan earnings fiscal year to date of($2,407,731)equates to a 7.49%net return vs.a policy benchmark return of 6.10%. • These results place the Plan in the top 4th percentile f.y.t.d.,top 10th percentile for 3 years,and top 10th percentile for 5 years in the Public Fund peer group universe. • RBC continued to outperform during the quarter and has added great value in all time periods as the Plan foreign equity manager. • Galliard Core Fixed Income finished ahead of benchmarks,the indexed TIPS portfolio was the the worst performing investment. • Investment diversification to Real Estate continued to influence results positively with both manager allocations providing meaningful,and steady reds. THE 10 r BOGDAHN \`� GROUP The Market Environment Plan Investment Performance Quarter Ended: December 2013 Portfolio Attribution (Reference pages 21-23 of The Bogdahn Group December 2014 Report) What helped? • The overall allocation to equities,and complimentary commitments to Real estate,were the primary drivers of return for the quarter. • The program continues to receive a significant performance boost from the allocation alternatives to investment grade fixed income. • The RBC International equity portfolio and the Templeton Global Bond portfolio continue to be the Plan's best active managers relative to benchmarks and peer groups. What hurt? • Investment grade fixed income continues to bleed returns in the rising rate environment. • TIPS were hit hardest with the sell off in fixed income markets during the quarter. Recommendations/Actions: • Continue to review alternative fixed income strategies. IsoN THE 11 lr BOGDAHN \`� GROUP Asset Allocation Summary Total Fund As of December 31,2013 Asset Allocation By Segment as of Asset Allocation By Segment as of September 30,2013:$31,810,974 December 31,2013:$34,567,862 Allocation i Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 16,832,629 52.9 • Domestic Equity 19,041,959 55.1 • International Equity 4,914,496 15.4 • International Equity 5,491,201 15.9 • Fixed Income 5,639,683 17.7 • Fixed Income 5,624,366 16.3 • Global Fixed Income 986,260 3.1 • Global Fixed Income 1,338,127 3.9 • Real Estate 2,708,272 8.5 • Real Estate 2,788,387 8.1 • Cash Equivalent 729,633 2.3 • Cash Equivalent 283,822 0.8 THE 12 (C , BOGDAHN ♦~� GROUP. Asset Allocation Summary Total Fund As of December 31,2013 Asset Allocation By Manager as of Asset Allocation By Manager as of September 30,2013:$31,810,974 December 31,2013:$34,567,862 Allocation Allocation Market Value Allocation Market Value Allocation •Vanguard Total Stock Market(VITSX) 16,832,629 52.9 •Vanguard Total Stock Market(VITSX) 19,041,959 55.1 • RBC Global(Voyageur) 4,914,496 15.4 • RBC Global(Voyageur) 5,491,201 15.9 • Galliard Core Fixed Income 4,465,982 14.0 • Galliard Core Fixed Income 4,463,859 12.9 • Intercontinental 1,940,365 6.1 • Intercontinental 2,012,082 5.8 • Galliard TIPS 1,186,311 3.7 • Templeton Global Bond Fund(TGBAX) 1,338,127 3.9 • Templeton Global Bond Fund(TGBAX) 986,260 3.1 • Galliard TIPS 1,168,392 3.4 •American Core Realty Fund 777,069 2.4 •American Core Realty Fund 785,918 2.3 Receipt&Disbursement 707,646 2.2 Receipt&Disbursement 266,325 0.8 • Galliard Cash 216 0.0 • Galliard Cash - 0.0 13 /CTHE A,BOGDAHN GROUP. Page Intentionally Left Blank 14 Asset Allocation vs.Target Allocation Total Fund As of December 31,2013 Asset Allocation vs.Target Allocation Vanguard Total Stock Market- 5.1% RBC Global(Voyageur)- 0.9% Galliard Core Fixed Income- -2.1 Galliard TIPS- -1.6 Templeton Global Bond Fund(TGBAX)- -1.1 American Core Realty Fund- Intercontinental- 0.8% Receipt&Disbursement- 0.8% Galliard Cash- 0.0% I -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • Allocation Differences Market Value$ Allocation(%) Target(%) ili ■ Vanguard Total Stock Market 19,041,959 55.1 50.0 RBC Global(Voyageur) 5,491,201 15.9 15.0 Galliard Core Fixed Income 4,463,859 12.9 15.0 Galliard TIPS 1,168,392 3.4 5.0 Templeton Global Bond Fund(TGBAX) 1,338,127 3.9 5.0 American Core Realty Fund 785,918 2.3 5.0 Intercontinental 2,012,082 5.8 5.0 Receipt&Disbursement 266,325 0.8 0.0 Galliard Cash - - 0.0 Total Fund 34,567,862 ).0 100.0 THE 15 BOGDAHN `-, GROUP. Asset Allocation History Total Fund As of December 31,2013 Historical Asset Allocation by Portfolio Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 ($) / ($) / ($) / ($) / ($) Total Equity 24,533,160 70.97 21,747,126 68.36 M100 67.30 19,894,108 67.00 18,027,915 65.47 Total Domestic Equity 19,041,959 55.09 16,832,629 52.91 . 85 52.37 15,409,934 51.90 13,905,360 50.50 Dalton All Cap Value Equity - 0.00 - 0.00 - 0.00 - 0.00 6,677,361 24.25 Vanguard Total Stock Market(VITSX) 19,041,959 55.09 16,832,629 52.91 15,836,585 52.37 15,409,934 51.90 - 0.00 Total International Equity_ 5,491,201 15.89 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 RBC Global(Voyageur) 5,491,201 15.89 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 4,122,556 14.97 Total Fixed Income 6,970,377 20.16 6,638,552 20.87 6,601,194 21.83 6,798,996 22.90 6,780,745 24.63 Total Domestic Fixed Income 5,632,251 16.29 5,652,293 17.77 5,615,698 18.57 5,776,095 19.45 5,762,425 20.93 Galliard Core Fixed Income 4,463,859 12.91 4,465,982 14.04 4,440,244 14.68 4,528,336 15.25 4,515,562 16.40 Galliard TIPS 1,168,392 3.38 1,186,311 3.73 1,175,454 3.89 1,247,759 4.20 1,246,863 4.53 Total Global Fixed Income 1,338,127 3.87 986,260 3.10 985,496 3.26 1,022,901 3.44 1,018,321 3.70 Templeton Global Bond Fund(TGBAX) 1,338,127 3.87 986,260 3.10 985,496 3.26 1,022,901 3.44 1,018,321 3.70 Total Real Estate 2,798,000 8.09 2,717,434 8.54 2,638,175 8.72 2,549,800 8.59 2,497,335 9.07 American Core Realty Fund 785,918 2.27 777,069 2.44 762,601 2.52 748,761 2.52 741,457 2.69 Intercontinental 2,012,082 5.82 1,940,365 6.10 1,875,574 6.20 1,801,039 6.07 1,755,878 6.38 Receipt&Disbursement 266,325 0.77 707,646 2.22 646,590 2.14 449,712 1.51 229,349 0.83 Gaillard Cash - 0.00 216 0.00 216 0.00 216 0.00 216 0.00 Total Fund Portfolio 34,567,862 100.00 31,810,974 100.00 30,237,076 100.00 29,692,832 100.00 27,535,560 100.00 THE 16 c.. BOGDAHN GROUP. Asset Allocation History Total Fund As of December 31,2013 Historical Asset Allocation by Segment 100.0 90.0 80.0 70.0 60.0 c 0 i 50.0 U 0 a 40.0 30.0 20.0 10.0 0.0 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 • Domestic Equity • International Equity • Fixed Income • Global Fixed Income • Real Estate • Cash Equivalent T7tE 17 (C , BOGDAHN ♦~-.■ GROUP. Page Intentionally Left Blank 18 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of December 31,2013 70.0- 65.0- 60.0- 55.0- 50.0- 45.0- 40.0- 35.0- 0 u 30.0- 0 a 25.0- E I 20.0- 15.0- 10.0- • 5.0- 0.0- • -5.0- US Equity Intl.Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash •Total Fund Portfolio 55.09 (18) 15.89 (46) 16.29 (89) 3.87 (79) 0.00 8.09 (34) 0.77 (70) 5th Percentile 61.57 26.53 42.40 8.75 34.12 11.82 6.21 1st Quartile 52.85 20.37 32.25 5.23 17.26 8.70 2.28 Median 45.74 15.23 26.90 4.65 9.22 6.08 1.26 3rd Quartile 33.23 12.60 20.22 4.15 4.42 4.43 0.65 95th Percentile 20.41 8.35 12.43 1.49 1.98 2.91 0.13 THE 19 BOGDAHN `~ ' GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31,2013 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec.1 Market Value 1010112013 Transfers Contributions Distributions Fees Expenses Income Deprec. 1 213112 01 3 Total Equity 21,747,126 515,807 - - -11,355 -1,543 113,580 2,169,546 24,533,160 Total Domestic Equity 16,832,629 504,452 - - - - 95,138 1,609,740 19,041,959 Vanguard Total Stock Market(VITSX) 16,832,629 504,452 - - - - 95,138 1,609,740 19,041,959 Total International Equity 4,914,496 11,355 - - -11,355 -1,543 18,443 559,805 5,491,201 RBC Global(Voyageur) 4,914,496 11,355 - - -11,355 -1,543 18,443 559,805 5,491,201 Total Fixed Income 6,638,552 322,645 - - -445 -147 16,276 -6,503 6,970,377 Total Domestic Fixed Income 5,652,293 - - - -445 -147 2,619 -22,069 5,632,251 Galliard Core Fixed Income 4,465,982 - - - - - - -2,123 4,463,859 Galliard TIPS 1,186,311 - - - -445 -147 2,619 -19,946 1,168,392 Total Global Fixed Income 986,260 322,645 - - - - 13,656 15,566 1,338,127 Templeton Global Bond Fund(TGBAX) 986,260 322,645 - - - - 13,656 15,566 1,338,127 Total Real Estate 2,717,434 -9,161 - - -29,486 - 27,204 92,009 2,798,000 American Core Realty Fund 777,069 -9,161 - - -2,167 - 9,613 10,564 785,918 Intercontinental 1,940,365 - - - -27,319 - 17,591 81,445 2,012,082 Receipt&Disbursement 707,646 -831,865 893,914 -495,309 - -8,080 20 - 266,325 Galliard Cash 216 2,575 - - -2,791 - - - - Total Fund Portfolio 31,810,974 - 893,914 -495,309 -44,077 -9,770 157,080 2,255,052 34,567,862 BOGDAHN 20 L'--, GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2013 To December 31,2013 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec.1 Market Value 1010112013 Transfers Contributions Distributions Fees Expenses Income Deprec. 1 213112 01 3 Total Equity 21,747,126 515,807 - - -11,355 -1,543 113,580 2,169,546 24,533,160 Total Domestic Equity 16,832,629 504,452 - - - - 95,138 1,609,740 19,041,959 Vanguard Total Stock Market(VITSX) 16,832,629 504,452 - - - - 95,138 1,609,740 19,041,959 Total International Equity 4,914,496 11,355 - - -11,355 -1,543 18,443 559,805 5,491,201 RBC Global(Voyageur) 4,914,496 11,355 - - -11,355 -1,543 18,443 559,805 5,491,201 Total Fixed Income 6,638,552 322,645 - - -445 -147 16,276 -6,503 6,970,377 Total Domestic Fixed Income 5,652,293 - - - -445 -147 2,619 -22,069 5,632,251 Galliard Core Fixed Income 4,465,982 - - - - - - -2,123 4,463,859 Galliard TIPS 1,186,311 - - - -445 -147 2,619 -19,946 1,168,392 Total Global Fixed Income 986,260 322,645 - - - - 13,656 15,566 1,338,127 Templeton Global Bond Fund(TGBAX) 986,260 322,645 - - - - 13,656 15,566 1,338,127 Total Real Estate 2,717,434 -9,161 - - -29,486 - 27,204 92,009 2,798,000 American Core Realty Fund 777,069 -9,161 - - -2,167 - 9,613 10,564 785,918 Intercontinental 1,940,365 - - - -27,319 - 17,591 81,445 2,012,082 Receipt&Disbursement 707,646 -831,865 893,914 -495,309 - -8,080 20 - 266,325 Galliard Cash 216 2,575 - - -2,791 - - - - Total Fund Portfolio 31,810,974 - 893,914 -495,309 -44,077 -9,770 157,080 2,255,052 34,567,862 21 r BOGDAHN �--o GROUP. Comparative Performance Trailing Returns Total Fund As of December 31,2013 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) 7.41 (4) 7.41 (4) (10) 13.98 (10) 5.46 (71) 1110112000 Total Fund Policy 6.10 (29) 6.10 (29) 20.37 (11) 11.80 (5) 13.29 (26) 5.09 (86) All Public Plans-Total Fund Median 5.55 5.55 16.92 9.69 12.47 5.81 Total Fund(New Mgrs)(Net) 7.41 (4) 7.41 (4) 22.29 (4) 11.32 (10) 13.98 (10) 4.97 (52) 10/01/2007 Total Fund Policy 6.10 (29) 6.10 (29) 20.37 (11) 11.80 (5) 13.29 (26) 6.01 (16) All Public Plans-Total Fund Median 5.55 5.55 16.92 9.69 12.47 5.00 Total Fund(Gross) 7.55 (3) 7.55 (3) 22.81 (3) 12.04 =(4) 14.72 71Ir. 6.16 (29) 1110112000 Total Fund Policy 6.10 (29) 6.10 (29) 20.37 (11) 11.80 (5) 13.29 (26) 5.09 (86) All Public Plans-Total Fund Median 5.55 5.55 16.92 9.69 12.47 5.81 Total Fund(New Mgrs)(Gross) 7.55 (3) 7.55 (3) 22.81 (3) 12.04 (4) 14.71 (4) 5.63 (26) 10/01/2007 Total Fund Policy 6.10 (29) 6.10 (29) 20.37 (11) 11.80 (5) 13.29 (26) 6.01 (16) All Public Plans-Total Fund Median 5.55 5.55 16.92 9.69 12.47 5.00 Total Equity I. : I. : .1 . I I t' Total Equity Policy 9.09 9.09 31.21 14.52 16.69 4.59 Total Domestic Equity 10.11 (63) 10.11 (63) 33.68 (47) 15.00 (73) 18.91 (33) 5.77 (38) 11/01/2000 Total Domestic Equity Policy 10.10 (63) 10.10 (63) 33.55 (48) 16.24 (53) 18.33 (46) 4.10 (85) IM U.S.Large Cap Core Equity(SA+CF)Median 10.47 10.47 33.38 16.35 18.18 5.17 Total International Equity 11.77 (1) 11.77 (1) 33.30 (3) 13.88 (5) 22.33 (2) 6.85 (72) 11/01/2000 MSCI EAFE Index 5.75 (60) 5.75 (60) 23.29 (48) 8.66 (49) 12.96 (60) 4.92 (95) IM International Large Cap Value Equity(SA+CF)Median 6.14 6.14 23.21 8.39 13.57 7.50 Total Fixed Inc. 1110112000 Total Fixed Policy -0.14 -0.14 -1.02 2.79 4.18 5.31 Total Domestic Fixed Income -0.34 -0.34 -2.12 3.21 5.91 5.33 11/01/2000 Total Domestic Fixed Policy -0.14 -0.14 -1.02 2.79 4.18 5.31 Total Global Fixed Income 2.72 (4) 2.72 (4) 2.44 (6) N/A N/A 8.72 (4) 12/01/2011 Total Global Fixed Income Policy -1.09 (91) -1.09 (91) -4.00 (81) N/A N/A -0.76 (94) IM Global Fixed Income(MF)Median 0.71 0.71 -2.18 3.08 5.57 3.10 371311 1010112007 NCREIF Fund Index-ODCE(EVV)(Net) 3.21 3.21 13.99 13.61 3.69 1.56 Returns for periods greater than one year are annualized.Returns are expressed as percentages. TRL 10/1/2007 inception date represents the date new managers were hired.Total Fund Policy represents new policy beginning 10/1/2009.Old policy geometrically linked to new policy.See benchmark history for details. 22 (7,,,BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of December 31,2013 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global(Voyageur) 11.77 (1) 11.77 (1) 33.30 (3) 13.88 (5) 22.33 (2) 3.35 (18) 11/01/2007 MSCI EAFE Index 5.75 (60) 5.75 (60) 23.29 (48) 8.66 (49) 12.96 (60) -0.16 (75) IM International Large Cap Value Equity(SA+CF)Median 6.14 6.14 23.21 8.39 13.57 0.93 Vanguard Total Stock Market(VITSX) 10.08 (31) 10.08 (31) N/A N/A N/A 24.94 (49) 03/01/2013 Vanguard Total Stock Market Index Hybrid 10.09 (30) 10.09 (30) 33.61 (47) 16.28 (25) 18.89 (33) 25.03 (47) IM U.S.Multi-Cap Core Equity(MF)Median 9.42 9.42 33.35 14.35 17.68 24.86 Galliard Core Fixed Income -0.05 (82) -0.05 (82) -1.15 (87) 3.42 (44) 6.25 (20) 4.57 (88) 10/01/2007 Barclays Intermediate Aggregate Index -0.14 (92) -0.14 (92) -1.02 (81) 2.79 (81) 4.18 (77) 4.60 (87) IM U.S.Intermediate Duration(SA+CF)Median 0.20 0.20 -0.49 3.31 4.97 5.10 Galliard TIPS -1.46 -1.46 -5.67 2.42 4.39 4.16 10/01/2007 BC U.S.Treasury Inflation Notes:1-10 Year -1.30 -1.30 -5.58 2.61 4.95 4.33 Templeton Global Bond Fund(TGBAX) 2.72 (4) 2.72 (4) 2.44 (6) N/A N/A 8.73 (4) 12/01/2011 Citigroup World Government Bond -1.09 (91) -1.09 (91) -4.00 (81) 1.25 (86) 2.28 (97) -0.76 (94) IM Global Fixed Income(MF)Median 0.71 0.71 -2.18 3.08 5.57 3.10 American Core Realty Fund 2.63 (76) 2.63 (76) 12.41 (73) 12.90 (77) 2.30 (63) 1.31 (57) 10/01/2007 American Core Realty Policy 3.19 (61) 3.19 (61) 13.96 (63) 13.60 (74) 6.71 (7) 4.74 (3) IM U.S.Open End Private Real Estate(SA+CF)Median 3.35 3.35 14.63 14.42 4.00 1.71 Intercontinental 5.10 (6) 5.10 (6) 16.86 (15) 16.16 (27) N/A 16.21 (29) 10/01/2010 NCREIF Fund Index-ODCE(EW)(Net) 3.21 (60) 3.21 (60) 13.99 (63) 13.61 (74) 3.69 (53) 14.20 (72) IM U.S.Open End Private Real Estate(SA+CF)Median 3.35 3.35 14.63 14.42 4.00 15.13 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 December 31,2013 Comparative Performance Fiscal Year Returns Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To To Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Total Fund(Net) EM . 7.41 (4) 15.72 (7) 18.95 (29) -1.17 (80) 10.67 (33) 0.70 (60) -16.84 (92) 13.03 (73) 7.89 (64) Total Fund Policy 6.10 (29) 15.05 (13) 19.59 (20) 2.53 (13) 9.13 (73) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 5.55 12.54 17.90 0.32 9.98 1.30 -13.67 14.39 8.59 Total Fund(New Mgrs)(Net) 7.41 (4) 15.72 (7) 18.95 (29) -1.17 (80) 10.66 (33) 0.68 (60) -16.82 (91) N/A N/A Total Fund Policy 6.10 (29) 15.05 (13) 19.59 (20) 2.53 (13) 9.13 (73) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 5.55 12.54 17.90 0.32 9.98 1.30 -13.67 14.39 8.59 Total Fund(Gro 7.55 (3) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (M 1.43 (49) -16.48 (90) 13.92 (57) 8.62 (i. Total Fund Policy 6.10 (29) 15.05 (13) 19.59 (20) 2.53 (13) 9.13 (73) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 5.55 12.54 17.90 0.32 9.98 1.30 -13.67 14.39 8.59 Total Fund(New Mgrs)(Gross) 7.55 (3) 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 6.10 (29) 15.05 (13) 19.59 (20) 2.53 (13) 9.13 (73) 0.33 (64) -12.11 (31) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 5.55 12.54 17.90 0.32 9.98 1.30 -13.67 14.39 8.59 Total Equity Total Equity Policy 9.09 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 10.11 (63) 21.85 (34) 27.76 (62) -3.30 (89) 14.19 (8) -4.29 (37) -21.66 (62) 17.58 (42) 9.29 (68) Total Domestic Equity Policy 10.10 (63) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (32) -6.91 (64) -21.98 (67) 16.44 (59) 10.79 (49) IM U.S.Large Cap Core Equity(SA+CF)Median 10.47 20.67 29.78 1.14 9.50 -5.79 -20.49 16.96 10.76 Total International Equity 11.77 (1) 27.54 (15) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) -39.55 (100) 23.63 (55) 19.84 (66) MSCI EAFE Index 5.75 (60) 24.29 (40) 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 6.14 22.63 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 Total Fixed Income 0.15 -0.59 6.34 9.27 10.= 0.64 4.91- 3.27 Total Fixed Policy -0.14 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income -0.34 -1.30 5.88 4.67 9.27 10.53 0.64 4.96 3.27 Total Domestic Fixed Policy -0.14 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Global Fixed Income 2.72 (4) 3.53 (5) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -1.09 (91) -4.60 (86) N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median 0.71 -1.42 7.41 1.52 7.91 14.10 -1.47 7.30 2.54 Total Real Estate 4.40 (20) 16.42 (15) 12.81 (52) 15.82 (79) 2.71 (75) -32.42 (37) 4.72 (40) NIA NIA NCREIF Fund Index-ODCE(EVV)(Net) 3.21 (60) 13.01 (52) 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 3.35 13.09 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. TI HE 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 `J GROUP. Comparative Performance Fiscal Year Returns Total Fund As of December 31,2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To To Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Lateef Asset Mgmt.Equity N/A N/A 33.21 (8) -1.17 (75) 11.93 (44) 0.53 (22) -15.13 (16) N/A N/A Russell 1000 Growth Index 10.44 (61) 19.27 (66) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) -20.88 (54) 19.35 (58) 6.04 (58) IM U.S.Large Cap Growth Equity(SA+CF)Median 10.93 20.40 27.60 1.24 11.31 -3.01 -20.41 20.41 6.80 RBC Global(Voyageur) 11.77 (1) 27.54 (15) 24.74 (2) -8.75 (55) 11.69 (13) 11.87 (21) N/A N/A N/A MSCI EAFE Index 5.75 (60) 24.29 (40) 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 6.14 22.63 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 Vanguard Total Stock Market(VITSX) 10.08 (31) N/A N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 10.09 (30) 21.60 (60) 30.28 (14) 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 9.42 22.95 25.36 -2.34 9.61 -4.56 -22.98 16.67 9.09 Galliard Core Fixed Income -0.05 (82) -0.64 (75) 5.82 (44) 4.16 (25) 9.63 (17) 12.08 (38) -1.68 (94) N/A N/A Barclays Intermediate Aggregate Index -0.14 (92) -0.71 (77) 4.31 (85) 4.22 (21) 7.52 (77) 9.69 (81) 4.16 (35) 5.33 (69) 3.84 (60) IM U.S.Intermediate Duration(SA+CF)Median 0.20 -0.24 5.57 3.58 8.25 11.43 3.26 5.49 3.91 Galliard TIPS -1.46 -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 -1.30 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Templeton Global Bond Fund(TGBAX) 2.72 (4) 3.54 (5) N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -1.09 (91) -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 0.71 -1.42 7.41 1.52 7.91 14.10 -1.47 7.30 2.54 American Core Realty Fund 2.63 (76) 12.27 (73) 11.56 (69) 16.11 (78) 2.71 (75) -32.42 (37) 4.72 (40) N/A N/A American Core Realty Policy 3.19 (61) 13.01 (52) 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 3.35 13.09 12.89 16.62 6.39 -34.36 3.60 18.73 18.08 Intercontinental 5.10 (6) 18.21 (8) 13.38 (41) 15.68 (79) N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE(EW)(Net) 3.21 (60) 13.01 (52) 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 3.35 13.09 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. 25 r BOGDAHN �-' GROUP. Performance Review Total Fund(Gross) As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Fund(Gross) 31,811 - 894 -495 -44 -10 157 2,255 34,568 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Fund(Gross) 31,811 - 894 -495 -44 -10 157 2,255 34,568 Peer Group Analysis-All Public Plans-Total Fund Cummulative Performance 25.73 $240.00 = 23.00 • $220.00 - $218.91 20.00 • $200.00 ■ $:9.80 17.00 • • $180.00 ■ • 14.00 • • • • $160.00 ■ 11.00 _ MI $140.00 8.00 - • • • • $120.00 5.00 $100.00 2.00 ■ I I I I I I $80.00 ■ ■ QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR $60.00 •Total Fund(Gross) 7.55 (3) 7.55 (3) 22.81 (3) 18.75 (3) 12.04 (4) 12.59 (4) 14.72 (4) I I I I I I I I I •Total Fund Policy 6.10 (29) 6.10 (29) 20.37 (11) 16.71 (13) 11.80 (5) 12.11 (9) 13.29 (26) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/13 Median 5.55 5.55 16.92 14.80 9.69 10.62 12.47 - Total Fund(Gross) - Total Fund Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total Fund(Gross) 5.10 (43) 1.27 (4) 7.28 (4) 1.88 (43) 6.06 (2) -3.30 (93) Total Fund Policy 5.46 (25) 0.91 (12) 6.60 (12) 1.42 (62) 4.82 (46) -1.92 (49) All Public Plans-Total Fund Median 4.91 0.09 5.47 1.72 4.77 -1.95 26 (CTHE )4,BOGDAHN GROUP. Performance Review Total Fund(Gross) As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 21.9 0.00 ® 8 0 - 18.0 Performance Over c e 7 rc 25.00 8 ° ° o 8 8 • 12.0 0 - 6.0 u 50.00 e e Q O o o o 0. Q Q 0 0.0 E 75.00 Q Q O o ° Q o 6.0 Under i2 Performance K I 1 1 1 1 1 1 1 1 1 100.00 I I I -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 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%) 3 (15%) 7 (35%) 2 (10%) Earliest Dale Latest Dale •Total Fund Policy 20 6 (30%) 10 (50%) 4 (20%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 12.40 • 1 5.06 • z.00 0 ,4.40 - -s2.. e c 11.20 13.60 - 0 w• 10.40 Kt 12.80 - 9.60 I I I I I I I 1 9.30 9.60 9.90 10.20 10.50 10.80 11.10 11.40 11.00 11.20 11.40 11.60 11.80 12.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 12.04 11.16 •Total Fund(Gross) 14.72 11.89 • Total Fund Policy 11.80 9.50 •Total Fund Policy 13.29 11.02 Median 9.69 9.56 Median 12.47 11.09 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.14 109.99 130.44 -1.53 0.19 1.08 1.17 6.92 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.23 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) 2.08 108.73 103.95 0.54 0.67 1.23 1.06 6.30 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.20 1.00 5.91 THE 27 (� , BOG DAHN ♦j GROUP. Performance Review Total Domestic Equity As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Domestic Equity 16,833 504 - - - - 95 1,610 19,042 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Domestic Equity 16,833 504 - - - - 95 1,610 19,042 Peer Group Analysis-ll=prno ran rnro Fnnih,rcn+r i Cumulative Performance $240.00 = 45.00 - $220.00 ■ $211.56 40.00 ■ $200.00 - 35.00 - '.83.43 $180.00 - 30.00 - 11 20.00 - IIII di • 0 $160.00 ■ E 25.00 - $140.00 - $120.00 - 15.00 ■ MI IIIL $100.00 ■ /\\Pa°/ $80.00 - 5.00 - $60.00 - 0.00 I I I I I I $40.00 -I _ I I I I I I I I 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 12/13 •Total Domestic Equity 10.11 (63) 10.11 (63) 33.68 (47) 23.98 (56) 15.00 (73) 15.48 (63) 18.91 (33) •Total Domestic Equity Policy 10.10 (63) 10.10 (63) 33.55 (48) 24.69 (46) 16.24 (53) 16.41 (42) 18.33 (46) - Total Domestic Equity Median 10.47 10.47 33.38 24.34 16.35 15.97 18.18 - Total Domestic Equity Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total Domestic Equity 6.29 (41) 2.77 (50) 11.15 (35) 0.36 (38) 7.22 (21) -5.85 (89) Total Domestic Equity Policy 6.35 (38) 2.69 (52) 11.07 (38) 0.25 (41) 6.23 (57) -3.15 (37) IM U.S.Large Cap Core Equity(SA+CF)Median 6.03 2.75 10.67 0.00 6.41 -3.57 THE 28 (C)4,BOGDAHN GROUP. Performance Review Total Domestic Equity As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 30.0 Over 0.00 = Performance c 0 20.0 rc 25.00 0 '" 10.0 0 ` 50.00 0p00000 0080000000 0 0 0 0 0 O O 0.0 oa • a 0 O o • 75.00 90 0000 0 0 00 -10.0 f Under w i2 Performance re 100.00 -I- -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 Total Domestic Equity Policy(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •Total Domestic Equity 20 2(10%) 9(45%) 8(40%) 1 (5%) Earliest Date X Latest Date •Total Domestic Equity Policy 20 0(0%) 9(45%) 11(55%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 16.50 - 19.03 O 18.90 • ems-°,16.00 e-3-°, E 18.60 15.50 re Kt • 18.30 15.00 • I I I I I I I I I I 1 15.20 15.40 15.60 15.80 16.00 16.20 16.40 16.60 16.80 17.40 17.50 17.60 17.70 17.80 17.90 18.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 15.00 16.67 •Total Domestic Equity 18.91 17.94 • Total Domestic Equity Policy 16.24 15.30 •Total Domestic Equity Policy 18.33 17.62 Median 16.35 15.30 Median 18.18 17.39 Historical Statistics-3 Years Mr Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.50 102.81 115.21 -2.76 -0.35 1.06 1.12 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 3.12 102.07 100.50 0.04 0.20 1.11 1.03 9.67 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.13 1.00 9.79 THE 29 (� , BOG DAHN ♦j GROUP. Performance Review Vanguard Total Stock Market(VITSX) As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Vanguard Total Stock Market(VITSX) 16,833 504 - - - - 95 1,610 19,042 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Vanguard Total Stock Market(VITSX) 16,833 504 - - - - 95 1,610 19,042 Peer Group Analysis-IM U.S.Multi-Cap Core Equity(MF) Cumulative Performance 48.36 $123.00 -I 45.00 $120.38 $120.00 • 40.00 35.00 $117.00 • 30.00 • 25.00 � 111 • $111.00 • 20.00 - ■ • $108.00 • 15.00 - ail- $105.00 • 10.00 $102.00 • 5.00 ■ $99.00 - 0.00 1 1 1 1 r 1 L I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/13 6/13 9/13 12/13 •Vanguard Total Stock Market(VITSX) 10.08 (31) 10.08 (31) N/A N/A N/A N/A N/A •Vanguard Total Stock Market Index Hybrid 10.09 (30) 10.09 (30) 33.61 (47) 24.72 (37) 16.28 (25) 16.54 (20) 18.89 (33) -Vanguard Total Stock Market(VITSX) Median 9.42 9.42 33.35 23.84 14.35 14.62 17.68 - Vanguard Total Stock Market Index Hybrid Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Vanguard Total Stock Market(VITSX) 6.29 (66) 2.77 (43) N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 6.29 (65) 2.81 (42) 11.06 (46) 0.19 (77) 6.24 (32) -3.16 (20) IM U.S.Multi-Cap Core Equity(MF)Median 6.87 2.48 10.95 1.52 5.66 -4.58 THE BOGDAHN 30 l✓ GROUP. Page Intentionally Left Blank 31 (l( ) BOGDAHN N.,---' GROUP. Performance Review Total International Equity As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total International Equity 4,914 11 - - -11 -2 18 560 5,491 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total International Equity 4,914 11 - - -11 -2 18 560 5,491 Peer Group AnalysAIM International Large Cap Value Equity(SA+CF) Cumulative Performance 39.32 $260.00 R 36.00 ■ $240.00 - •32.00 ■ • $230.14 • $220.00 • 28.00 - $200.00 • 24.00 - '88.74 • • $180.00 • /\ E 20.00 •- $160.00 / 16.00 - • / • $140.00 • / or 12.00 ■ • • 8.00 $120.00 • - I lbw 4.00 - $100.00 • - 111 $80.00 • 0.00 - r I I I I I $60.00 • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR $40.00 - lb Total International Equity 11.77 (1) 11.77 (1) 33.30 (3) 32.42 (2) 13.88 (5) 15.58 (3) 22.33 (2) I I I I I I r t I r • MSCI EAFE Index 5.75 (60) 5.75 (60) 23.29 (48) 20.57 (43) 8.66 (49) 8.55 (58) 12.96 (60) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/13 Median 6.14 6.14 23.21 19.80 8.39 8.88 13.57 - Total International Equity - MSCI EAFE Index Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total International Equity 8.88 (78) 0.69 (34) 8.79 (2) 6.93 (34) 11.28 (2) -6.02 (33) MSCI EAFE Index 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) -6.85 (50) IM International Large Cap Value Equity(SA+CF)Median 10.79 0.03 4.19 6.26 7.27 -6.86 THE 32 (C)4,BOGDAHN GROUP. Performance Review Total International Equity As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years a 33.0 Over 0.00 0000 00000 Performance 0 0 w 22.0 0 - 25.00 0 ��('Q/t °m• 10.0 CP W' ,` `w 50.00 0 0 O O 0 0 O o • a O O 0 0 0 d-11.0 . • E 75.00 000 0000000 Under 0 0 F-22.0 Performance re 0 0 0 100.00 0 -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 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 10 (50%) 2 (10%) 2 (10%) 6 (30%) Earliest Date X Latest Date • MSCI EAFE Index 20 0 (0%) 3 (15%) 16 (80%) 1 (5%) Peer Group Scattergram-3 Years A Peer Group Scattergram-5 Years 23.83 - 14.00 • • 12.00 2 20.00 w 10.00 , 16.00 8.00 o 12.00 • I I �r I I I I I I I I I -I- 15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 19.91 21.00 21.50 22.00 22.50 23.00 23.50 24.00 24.50 25.00 25.35 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 13.88 19.31 •Total International Equity 22.33 24.80 • MSCI EAFE Index 8.66 16.02 • MSCI EAFE Index 12.96 21.57 Median 8.39 16.22 Median 13.57 21.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 5.67 113.30 93.14 4.98 0.86 0.84 1.00 11.33 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.59 1.00 11.03 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 6.45 117.90 89.27 8.11 1.30 1.05 1.04 11.82 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.72 1.00 12.27 lioN THE 33 (: 9 BOGDAHN ♦~� GROUP. Performance Review RBC Global(Voyageur) As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 RBC Global(Voyageur) 4,914 11 - - -11 -2 18 560 5,491 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 RBC Global(Voyageur) 4,914 11 - - -11 -2 18 560 5,491 t ino cin v.hro c„rrtn,rsn+cct Cumulative Performance 39.32 $150.00 ■ 36.00 ■ $140.00 - $136.42 32.00 ■ • • $130.00 28.00 - 1. $120.00 ■ 24.00 - $110.00 - $104.72 • E 20.00 - $100.00 ■ \ T, 16.00 - • $90.00 12.00 ■ • $80.00 - 8.00 - $70.00 ■ 4.00 $60.00 - \i,i.0.00 - $50.00 - I I I I I I $40.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR $30.00 - lb RBC Global(Voyageur) 11.77 (1) 11.77 (1) 33.30 (3) 32.42 (2) 13.88 (5) 15.58 (3) 22.33 (2) I I I I I I I I t • MSCI EAFE Index 5.75 (60) 5.75 (60) 23.29 (48) 20.57 (43) 8.66 (49) 8.55 (58) 12.96 (60) 12/07 9/08 6/09 3/10 12/10 9/11 6/12 3/13 12/13 Median 6.14 6.14 23.21 19.80 8.39 8.88 13.57 - RBC Global(Voyageur) - MSCI EAFE Index Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 RBC Global(Voyageur) 8.88 (78) 0.69 (34) 8.79 (2) 6.93 (34) 11.28 (2) -6.02 (33) MSCI EAFE Index 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) -6.85 (50) IM International Large Cap Value Equity(SA+CF)Median 10.79 0.03 4.19 6.26 7.27 -6.86 THE 34 ( , BOG DAHN \~� GROUP. Performance Review RBC Global(Voyageur) As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years • 30.0 Over 0.00 000p00000 Performance O c Kt 0 25.00 e 20.0 _ 0 F 0 • O % u 50.00 O D O ▪ ,o.0 000 a 0 • 000000 75.00 000 0000000 ilk5 0.0 m Under 100.00 K Performance 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 -10.0 T -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 31.5 Total Period 5-25 25-Median Median-75 75-95 MSCI EAFE Index(%) Count Count Count Count • RBC Global(Voyageur) 13 10 (77%) 2 (15%) 1 (8%) 0 (0%) • Over Performance 4. Earliest Date X Latest Date if MSCI EAFE Index 20 0 (0%) 3 (15%) 16 (80%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 23.83 14.00 • • 12.00 2 20.00 w 10.00 , 16.00 8.00 0 12.00 • I I I I I I I I I I I I I I 15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 19.91 21.00 21.50 22.00 22.50 23.00 23.50 24.00 24.50 25.00 25.35 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 13.88 19.31 • RBC Global(Voyageur) 22.33 24.80 • MSCI EAFE Index 8.66 16.02 • MSCI EAFE Index 12.96 21.57 Median 8.39 16.22 Median 13.57 21.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 5.67 113.30 93.14 4.98 0.86 0.84 1.00 11.33 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.59 1.00 11.03 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 6.45 117.90 89.27 8.11 1.30 1.05 1.04 11.82 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.72 1.00 12.27 ILE 35 ("04,TBOGDAHN GROUP. Performance Review Total Domestic Fixed Income Composite As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Domestic Fixed Income Composite 5,652 - - - - - 3 -22 5,632 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Domestic Fixed Income Composite 5,652 - - - - - 3 -22 5,632 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 9.32 $215.00 8.00 $200.00 • 6.00 $180.00 • 4.00 ■ $160.00 • rc 2.00 $140.00 • 0.00 IP :::.::. • -2.00 I y 4.00 1 1 1 1 1 1 t t t t t t r t t r 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 12/13 •Total Domestic Fixed Income Composite -0.34 (97) -0.34 (97) -2.12 (99) 1.50 (78) 3.21 (57) 4.20 (44) 5.91 (23) •Total Domestic Fixed Policy -0.14 (92) -0.14 (92) -1.02 (81) 1.24 (87) 2.79 (81) 3.62 (81) 4.18 (77) - Total Domestic Fixed Income Composite Median 0.20 0.20 -0.49 2.13 3.31 4.08 4.97 - Total Domestic Fixed Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total Domestic Fixed Income Composite 0.66 (66) -2.72 (100) 0.30 (61) 0.49 (37) 1.79 (47) 1.78 (16) Total Domestic Fixed Policy 0.76 (41) -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) IM U.S.Intermediate Duration(SA+CF)Median 0.72 -1.76 0.34 0.40 1.74 1.46 THE 36 ( , BOG DAHN ♦~� GROUP. Performance Review Total Domestic Fixed Income Composite As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years E 9.9 0.00 Over O U Performance O 8.0 0 O 25.00 O O O O 0 M 0 o 0 0O o 63 O • O o w 50.00 e 0 O 0000 90 O i,7 4.0 O E 75.00 008000 •x Under v 00 000 00 0 00 il °N'2.0 Performance re 100.00 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 9.9 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 Total Domestic Fixed Policy(%) Total 5-25 25-Median Median-75 75-95 0 Over Performance • Under Performance Period Count Count Count Count •Total Domestic Fixed Income Composite 20 6(30%) 3(15%) 4(20%) 7(35%) Earliest Date X Latest Date •Total Domestic Fixed Policy 20 0(0%) 2(10%) 13(65%) 5(25%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 339 6.00- • e,3.20 • e-5.40- 3.00 v 4.80- re re 230 O 420- • I I I I I I I I I I I I 1 2.10 2.20 2.30 2.40 2.50 2.60 2.67 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 3.21 2.58 •Total Domestic Fixed Income Composite 5.91 3.28 • Total Domestic Fixed Policy 2.79 2.09 •Total Domestic Fixed Policy 4.18 2.38 Median 3.31 2.09 Median 4.97 2.74 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Fixed Income Composite 0.78 115.34 116.23 0.13 0.53 1.34 1.10 1.43 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.35 1.00 1.10 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 1.29 127.11 91.39 1.16 1.29 2.00 1.12 1.39 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.78 1.00 1.16 37 (CTHE )4,BOGDAHN GROUP. Performance Review Galliard Core Fixed Income As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Galliard Core Fixed Income 4,466 - - - - - - -2 4,464 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Galliard Core Fixed Income 4,466 - - - - - - -2 4,464 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) 1.1 Cumulative Performance 9.27 $140.00 = 8.00 $135.00 - 142 $130.00 - 6.00 $125.00 4.00 • $,20.00 - i $„5.00 _ 2.00 $„0.00 - 0.00 - MINIM 11.2.0. $,05.00 - $100.00 -2.00 - $95.00 - r I I I I I I I I I I I I . r 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 12/13 •Galliard Core Fixed Income -0.05 (82) -0.05 (82) -1.15 (87) 1.98 (61) 3.42 (44) 4.47 (27) 6.25 (20) • Barclays Intermediate Aggregate Index -0.14 (92) -0.14 (92) -1.02 (81) 1.24 (87) 2.79 (81) 3.62 (81) 4.18 (77) - Galliard Core Fixed Income Median 0.20 0.20 -0.49 2.13 3.31 4.08 4.97 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Galliard Core Fixed Income 0.58 (79) -1.95 (76) 0.28 (64) 0.46 (40) 1.80 (46) 1.84 (14) Barclays Intermediate Aggregate Index 0.76 (41) -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) IM U.S.Intermediate Duration(SA+CF)Median 0.72 -1.76 0.34 0.40 1.74 1.46 ILE 38 ( , TBOGDAHN ♦~� GROUP. Performance Review Galliard Core Fixed Income As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years E 10.0 over 0.00 Performance o° , 0 0 ° 00 e.o O _ 25.00 O O 0 0 'i2 6.0 0 w 50. 00 •• e • • 0 u a.o E 75.00 0000 00p00 000 0 0 �0 Under v • • O 0 0 0 il = 20 Performance 100.00 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 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 14 6(43%) 6(43%) 0(0%) 2(14%) • Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0(0%) 2(10%) 13(65%) 5(25%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.53 • 640 • 3.30 F ..5.60 ,3.00 ,4.80 re re 0 4.00 • 2.70 I I I I I I I 2.08 2.10 2.12 2.14 2.16 2.18 2.20 2.22 2.20 2.40 2.60 2.80 3.00 3.20 3.40 3.57 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 3.42 2.20 •Galliard Core Fixed Income 6.25 3.39 • Barclays Intermediate Aggregate Index 2.79 2.09 • Barclays Intermediate Aggregate Index 4.18 2.38 Median 3.31 2.09 Median 4.97 2.74 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.53 110.01 86.90 0.66 1.17 1.63 0.98 1.14 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.35 1.00 1.10 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 1.29 127.81 72.92 1.71 1.54 2.19 1.07 1.20 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.78 1.00 1.16 39 (CTHE )4,BOGDAHN GROUP. Performance Review Galliard TIPS As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Galliard TIPS 1,186 - - - - - 3 -20 1,168 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Galliard TIPS 1,186 - - - - - 3 -20 1,168 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance 10.57 $145.00 = 8.00 $140.00 ■ $135.00 - 5.00 F• $130.00 - 0.99 2.00 $125.00 ■ -1.00 ■ -. -. $120.00 - re -4.00 ■ $115.00 - •• $110.00 ■ -7.00 - $105.00 - ■ -10.00 - $100.00 - I I I I I I $95.00 - _ I 1 1 I I I I I 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 9/11 3/12 12/12 12/13 •Galliard TIPS -1.46 (24) -1.46 (24) -5.67 (22) -0.40 (34) 2.42 (94) 3.00 (94) 4.39 (98) • BC U.S.Treasury Inflation Notes:1-10 Year -1.30 (7) -1.30 (7) -5.58 (17) -0.41 (34) 2.61 (88) 3.25 (93) 4.95 (89) - Galliard TIPS Median -1.97 -1.97 -8.58 -0.70 3.57 4.27 5.60 - BC U.S.Treasury Inflation Notes:1-10 Year Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Galliard TIPS 0.97 -5.53 0.35 0.59 1.74 1.59 BC U.S.Treasury Inflation Notes:1-10 Year 0.92 -5.52 0.33 0.46 1.71 1.34 THE ( ) BOGDAHN 40 `~� GROUP. Performance Review Galliard TIPS As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 9.6 0.00 Over Performance rc ---8.0 25.00• N • 0 50.00 0 g. 0 0 0 0 75.00 4.0- 0 000060a00000888 Under 100.00 2.0- Performance 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 I 1 I I 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 9.6 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 14 0(0%) 0(0%) 0(0%) 14(100°r • Under Performance + Earliest Date X Latest Date • BC U.S.Treasury Inflation Notes:1-10 Year 20 0(0%) 1 (5%) 4(20%; 15(75%; Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.60 I 5.60- e..3.20 1 �'5.20- • r,2.80 • r,4.80- 240 0 440- • 1 1 1 1 1 1 1 I I I T I I 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 6.00 6.20 3.80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.50 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 2.42 4.24 •Galliard TIPS 4.39 3.85 • BC U.S.Treasury Inflation Notes:1-10 Year 2.61 4.27 • BC U.S.Treasury Inflation Notes:1-10 Year 4.95 4.19 Median 3.57 5.99 Median 5.60 5.29 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.63 96.87 99.76 -0.15 -0.30 0.63 0.99 2.58 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 0.68 1.00 2.60 Historical Statistics-5 Y Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.16 91.22 94.61 -0.04 -0.47 1.07 0.90 2.30 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 1.12 1.00 2.33 THE 41 (C),„BOGDAHN GROUP. Performance Review Total Global Fixed Income Composite As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Global Fixed Income Composite 986 323 - - - - 14 16 1,338 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Global Fixed Income Composite 986 323 - - - - 14 16 1,338 Peer Group Analysis-IM Global Fixed Income(MF) ili. .111 Cumulative Performance 15.81 $122.60 -1 14.00 - $120.00 ■ 6119.95 11.00 ■ $117.00 • 9.00 - • $114.00 •• 5.00 - $111.00 • • 2.00 ■ • • • $109.00 se ■ $196.99 • -1.00 ■ ■ $192.00 • -4.00 - $66.99 • -7.00 - ss $66.99 0.00 ■ 1 1 1 1 1 1 $93.00 I I 1 I 1 I 1 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 12/13 •Total Global Fixed Income Composite 2.72 (4) 2.72 (4) 2.44 (6) 9.06 (3) N/A N/A N/A •Total Global Fixed Income Policy -1.09 (91) -1.09 (91) -4.00 (81) -1.21 (94) N/A N/A N/A - Total Global Fixed Income Composite Median 0.71 0.71 -2.18 2.97 3.08 3.87 5.57 - Total Global Fixed Income Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total Global Fixed Income Composite 1.09 (47) -2.72 (31) 1.42 (9) 3.81 (4) 5.40 (13) -1.00 (97) Total Global Fixed Income Policy 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (74) 0.92 (38) IM Global Fixed Income(MF)Median 0.97 -3.26 -0.42 1.12 3.45 0.58 42 /0THE 4,BOGDAHN GROUP. Performance Review Templeton Global Bond Fund(TGBAX) As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Templeton Global Bond Fund(TGBAX) 986 323 - - - - 14 16 1,338 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Templeton Global Bond Fund(TGBAX) 986 323 - - - - 14 16 1,338 Peer Group Analysis-IM Global Fixed Income(MF) 11=111 Cumulative Performance 15.81 $122.60 -1 14.00 - $120.00 ■ 6119.97 11.00 $117.00 • 9.00 • $114.00 • 5.00 $111.00 • z.00 • • • ■ $10e.00 • _ $105.00 • -1.00 ■ $192.00 • -4.00 - $66.00 • -7.00 - 7.69 $66.00 -10.00 ■ 1 1 1 1 1 1 $93.00 I I I I I 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 12/13 •Templeton Global Bond Fund(TGBAX) 2.72 (4) 2.72 (4) 2.44 (6) 9.07 (3) N/A N/A N/A •Citigroup VVorld Government Bond -1.09 (91) -1.09 (91) -4.00 (81) -1.21 (94) 1.25 (86) 2.21 (90) 2.28 (97) - Templeton Global Bond Fund(TGBAX) Median 0.71 0.71 -2.18 2.97 3.08 3.87 5.57 - Citigroup world Government Bond Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Templeton Global Bond Fund(TGBAX) 1.09 (47) -2.72 (31) 1.42 (9) 3.83 (4) 5.40 (13) -1.00 (97) Citigroup VVorld Government Bond 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (74) 0.92 (38) IM Global Fixed Income(MF)Median 0.97 -3.26 -0.42 1.12 3.45 0.58 43 /0THE 4,BOGDAHN GROUP. Performance Review Total Real Estate As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Real Estate 2,717 -9 - - -29 - 27 92 2,798 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Total Real Estate 2,717 -9 - - -29 - 27 92 2,798 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance $123.80 - 23.00 ■ � $120.00 - $115.43 20.00 - $110.00 ■- 10.11 17.00 - _ 14.00 ■ $$90.00 100.00 11.00 rc 8.00 $80.00 ■ 5.00 • \II/ 2.00 ■ MI IIII $70.00 - -1.00 - I I I I I I $60.00 - I I 1mr I I I 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 12/13 •Total Real Estate 4.40 (20) 4.40 (20) 15.58 (32) 14.90 (28) 15.19 (40) 14.24 (54) 3.58 (54) • NCREIF Fund Index-ODCE(VV) 3.19 (61) 3.19 (61) 13.96 (63) 12.43 (70) 13.60 (74) 14.29 (53) 3.68 (53) - Total Real Estate - Median 3.35 3.35 14.63 13.69 14.42 14.52 4.00 NCREIF Fund Index-ODCE(VW) Comparative Performan 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Total Real Estate 3.59 (42) 4.06 (45) 2.70 (60) 5.16 (8) 2.73 (60) 2.67 (62) NCREIF Fund Index-ODCE(VV) 3.56 (44) 3.86 (50) 2.68 (60) 2.33 (63) 2.77 (53) 2.58 (64) IM U.S.Open End Private Real Estate(SA+CF)Median 3.37 3.86 3.10 2.52 2.79 2.88 THE 44 (C)4,BOGDAHN GROUP. Performance Review Total Real Estate As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 18.0 Over Performance , rc 12.0 • 25.00 oo • • 50.00 o ° pOpo898 °o8 ° o ° po ° ° o. O 8O 1 Kt -6.0 • g 75.00 ° ° ° O ° ° o F 1 Under w -12.0 Performance re 100.00 I I I I I I I I I 1 1 -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 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 NCREIF Fund Index-ODCE(VW)(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •Total Real Estate 14 0 (0%) 4(29%) 9(64%) 1 (7%) Earliest Date X Latest Date • NCREIF Fund Index-ODCE(VW) 20 0 (0%) 14(70%) 6(30%) 0 (0%) Peer Group Scattergram-3 Years III Peer Group Scattergram-5 Years 15.44 - • 4.00- ---15.00 e E E 14.40 E 3.80- Ke Kt 13.80 I • • 3.60- • I I I I I I I I I I I I I I I I 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.26 10.10 10.20 10.30 10.40 10.50 10.60 10.70 10.80 10.90 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Real Estate 15.19 1.53 •Total Real Estate 3.58 10.16 • NCREIF Fund Index-ODCE(VW) 13.60 1.31 • NCREIF Fund Index-ODCE(VW) 3.68 10.18 Median 14.42 2.13 Median 4.00 10.80 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 1.85 111.13 N/A 12.67 0.78 9.44 0.18 0.00 NCREIF Fund Index-ODCE(VW) 0.00 100.00 N/A 0.00 N/A 9.90 1.00 0.00 Historical Statistics-5 Years = T Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 2.32 99.72 101.17 0.01 -0.05 0.39 0.97 8.10 NCREIF Fund Index-ODCE(VW) 0.00 100.00 100.00 0.00 N/A 0.40 1.00 8.18 lioN THE 45 (: 9 BOGDAHN ♦~� GROUP. Performance Review American Core Realty Fund As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 American Core Realty Fund 777 -9 - - -2 - 10 11 786 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 American Core Realty Fund 777 -9 - - -2 - 10 11 786 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance $137.15 - 23.00 ■ $130.00 - $127.29 20.00 - $120.00 ■ 17.00 14.00 ■ $110.00 $108.48 11.00 - ■ $100.00 . 8.00 $90.00 5.00 - ■ ■ $80.00 2.00 $70.00 -1.00 - I I I I I I $60.00 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 12/13 •American Core Realty Fund 2.63 (76) 2.63 (76) 12.41 (73) 11.84 (73) 12.90 (77) 12.48 (94) 2.30 (63) • NCREIF Property Index 2.53 (79) 2.53 (79) 10.98 (77) 10.76 (78) 11.92 (84) 12.22 (95) 5.69 (14) -American Core Realty Fund Median 3.35 3.35 14.63 13.69 14.42 14.52 4.00 - NCREIF Property Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 American Core Realty Fund 3.40 (48) 3.36 (65) 2.49 (68) 2.50 (53) 2.58 (69) 2.72 (61) NCREIF Property Index 2.59 (90) 2.87 (75) 2.57 (63) 2.54 (49) 2.34 (85) 2.68 (61) IM U.S.Open End Private Real Estate(SA+CF)Median 3.37 3.86 3.10 2.52 2.79 2.88 46 (CTHE )4,BOGDAHN GROUP. Performance Review American Core Realty Fund As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years n.e o v e r = o.o0 00 0 0 0 0 0 0 0 0 0 0 12.0 Performance -/ rc a 25.00 0 6.o 0 0 0 0 re • u 50.00 0 0 0.0 w 0 • 0 Q u -6.0 • E 75.00 - -1 • Under v _ i 0 0 8 e 8 C-12.0 • Performance I I I I I I I I I 100.00 1 I I I -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 17.8 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 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 14 0(0%) 3(21%) 5(36%) 6(43%) Earliest Date X Latest Date • NCREIF Property Index 20 13(65%) 1(5%) 1(5%) 5(25%) Peer Group Scattergram-3 Years Ell Peer Group Scattergram-5 Years 14.80 6.00- • 2-14.00 ■ _, e.4.80■ 13.00 ■ • 3.60■ re re 12.00 - • 240■ 0 I I I I I I I I I I 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.32 6.00 7.00 8.00 9.00 10.00 11.00 11.48 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation •American Core Realty Fund 12.90 1.17 •American Core Realty Fund 2.30 9.81 • NCREIF Property Index 11.92 0.89 • NCREIF Property Index 5.69 6.36 Median 14.42 2.13 Median 4.00 10.80 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 0.79 107.89 N/A 1.19 1.14 10.58 0.97 0.00 NCREIF Property Index 0.00 100.00 N/A 0.00 N/A 12.92 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 3.84 102.15 188.92 -5.79 -0.78 0.27 1.51 8.10 NCREIF Property Index 0.00 100.00 100.00 0.00 N/A 0.89 1.00 4.38 THE 47 (� BOG DAHN j, GROUP. Page Intentionally Left Blank 48 Performance Review Intercontinental As of December 31,2013 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Intercontinental 1,940 - - - -27 - 18 81 2,012 Financial Reconciliation October 1,2013 To December 31,2013 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2013 Intercontinental 1,940 - - - -27 - 18 81 2,012 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 23.00 ■ $170.00 1 $162.97 20.00 - $160.00 $153.92 17.00 - • • • $150.00 14.00 ■ $140.00 11.00 - $130.00 rc 8.00 $120.00 5.00 2.00 ■ $110.00 -1.00 - $100.00 I I 1 I 1 I L 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 12/13 • Intercontinental 5.10 (6) 5.10 (6) 16.86 (15) 16.19 (11) 16.16 (27) N/A N/A • NCREIF Fund Index-ODCE(VV) 3.19 (61) 3.19 (61) 13.96 (63) 12.43 (70) 13.60 (74) 14.29 (53) 3.68 (53) - Intercontinental Median 3.35 3.35 14.63 13.69 14.42 14.52 4.00 - NCREIF Fund Index-ODCE(VW) Comparative Performan 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Intercontinental 3.66 (36) 4.35 (26) 2.79 (58) 6.32 (6) 2.80 (49) 2.65 (62) NCREIF Fund Index-ODCE(VV) 3.56 (44) 3.86 (50) 2.68 (60) 2.33 (63) 2.77 (53) 2.58 (64) IM U.S.Open End Private Real Estate(SA+CF)Median 3.37 3.86 3.10 2.52 2.79 2.88 THE 49 ( , BOG DAHN \~� GROUP. Manager Performance Reviews THE 50 l� BOGDAHN GROUP Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of December 31,2013 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 YPC a, d w 50.0 a c 75.0 100.0 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 9/1312/13 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%) 20 (53%) 18 (47%) Manager composite returns used for chart population. 51 r ) TILE BOGDAHN ♦~� GROUP. Relative Performance International Equity Since Inception Ending December 31,2013 Relative Performance 16.0 14.0 12.0 10.0 8.0–I 6.0 4.0• 2.0 .11 I 1 1 II 11I .I1I1 I II111 111 LI VII . III _ I I I II 1I I I II 1 . . I 1II ..II _ III Jiiii1i I I• I •I I 11I 1 1111 I 1 1 1 111 •1 1.I 1111 -4.0- -6.0– -8.0– -10.0– -12.0– -14.0– -16.0– r -18.0– / -20.0– 20.9 1 r i r i r iT i i r i r i r i r i r i r r 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 7/1312/13 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. TILE 52 ( BOGDAHN ♦~� GROUP. Page Intentionally Left Blank 53 el BOGDAHN N.,---' GROUP. Performance Review RBC Global Asset Management As of December 31,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To December 31,2013 No data found. Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance 39.20 $577.50 $550.00 - 36.00 $500.08 0 $500.00 -3Z00 $450.00 ■ 28.00 ■ $400.00 - 24.00 ■ E • 26.00 •- 16.00 - • • $350.00$300.00 ■ $250.00 12.00 ■ • • $214.31 8.00 - $200.00 ■ Oh MI-4.00 $150.00 - 0.00 ■ $100.00 I I I I I I $50.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • International Equity 11.73 (1) 11.73 (1) 33.20 (3) 32.32 (2) 14.34 (4) 15.79 (2) 22.49 (1) $o.00 t t t • MSCI EAFE Index 5.75 (60) 5.75 (60) 23.29 (48) 20.57 (43) 8.66 (49) 8.55 (58) 12.96 (60) 6/98 3/00 12/01 9/03 6/05 3/07 12/08 9/10 12/13 -Median 6.14 6.14 23.21 19.80 8.39 8.88 13.57 International Equity MSCI EAFE Index Comparative Performan J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 International Equity 8.88 (78) 0.67 (34) 8.77 (2) 6.92 (34) 11.25 (2) -6.04 (35) MSCI EAFE Index 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) -6.85 (50) IM International Large Cap Value Equity(SA+CF)Median 10.79 0.03 4.19 6.26 7.27 -6.86 54 C ) THE BOGDAHN \~� GROUP. Performance Review RBC Global Asset Management As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 33.0 Over 0.00 000000000 a Performance 0 0 .� 22.0 O 25.00 O • w 11.0 '` 1 :::: O O O O 0.0 0 0 0 0 0 o 00 0 OBIS ooO o + Under v 0 0 0 0 c-22.0 Performance re O 100.00 -20.0 -10.0 0.0 10.0 20.0 30.0 37.5 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • International Equity 20 11 (55%) 1 (5%) 2 (10%) 6 (30%) Earliest Date X Latest Date • MSCI EAFE Index 20 0 (0%) 3 (15%) 16 (80%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.30 - 23.94 14 00 • • 6 ems`.20.00 • 12.00 rc ,0.00 rc 16.00 8.00 O 12.00 • I I I I I I I I I I I I I 15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 19.91 21.00 21.50 22.00 22.50 23.00 23.50 24.00 24.50 25.00 25.35 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 14.34 19.35 • International Equity 22.49 24.80 • MSCI EAFE Index 8.66 16.02 • MSCI EAFE Index 12.96 21.57 Median 8.39 16.22 Median 13.57 21.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 5.45 114.87 93.31 5.37 0.97 0.87 1.01 11.33 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.59 1.00 11.03 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 6.31 118.47 89.61 8.23 1.35 1.06 1.04 11.87 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.72 1.00 12.27 55 (CTILE )4,BOGDAHN GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of December 31,2013 Financial Reconciliation 1 Quarter II- No data found. Financial Reconciliation October 1,2013 To December 31,2013 No data found. Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cullill 9.27 $330.00 - 8.00 $300.00 ■ 279.35 $270.00 - 266.10 6.00 a $240.00 - 4.00 i $210.00 ■ Ia 2.00 $,80.00 - 0.00 . MINIIM IMIONS. $150.00 ■ $,20.00 - -2.00 - $90.00 - I I I I I I I I 9/95 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 12/13 • Intermediate Core -0.06 (85) -0.06 (85) -1.43 (92) 1.82 (65) 3.39 (47) 4.13 (49) 5.21 (41) • Barclays Intermediate Aggregate Index -0.14 (92) -0.14 (92) -1.02 (81) 1.24 (87) 2.79 (81) 3.62 (81) 4.18 (77) - Intermediate Core Median 0.20 0.20 -0.49 2.13 3.31 4.08 4.97 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Intermediate Core 0.67 (61) -2.23 (91) 0.21 (84) 0.42 (46) 1.88 (40) 1.73 (17) Barclays Intermediate Aggregate Index 0.76 (41) -1.78 (52) 0.15 (91) 0.18 (85) 1.36 (85) 1.32 (69) IM U.S.Intermediate Duration(SA+CF)Median 0.72 -1.76 0.34 0.40 1.74 1.46 TILE 56 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 8.9 0.00 Over 8.0 Performance 0 g u rc 25.00 0CU3•. 080000000000 0000 O u 6.0 1 50.00 O 0 O e 75.00 DOOR 0000 0000 0 =4.0- a 0 000 il • Under 100.00 2 0- Performance 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 I I I I I I 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%) 20(100% 0(0%) 0(0%) • Over Performance + Earliest Date X Latest Date if Barclays Intermediate Aggregate Index 20 0 (0%) 2(10%) 13(65%) 5(25%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years - 5.38 - 3.40 • 520■ • x'3.20 .4.80- 5 3.00 re re 4.40■ 2.80 O • I I I I I I I I I I I 1 2.05 2.10 2.15 2.20 2.25 2.30 2.35 2.40 2.45 2.48 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 3.39 2.42 • Intermediate Core 5.21 2.91 • Barclays Intermediate Aggregate Index 2.79 2.09 • Barclays Intermediate Aggregate Index 4.18 2.38 Median 3.31 2.09 Median 4.97 2.74 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.43 114.57 102.04 0.37 1.35 1.50 1.08 1.28 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.35 1.00 1.10 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.80 113.67 85.66 0.76 1.23 1.99 1.06 1.33 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.78 1.00 1.16 THE 57 ( , BOG DAHN ♦~� GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv(TGBAX) 20 Quarters Rolling Periods As of December 31,2013 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 25.0 1 91 50.0 75.0 100.0 II III 6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 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 21 (49%) 17 (40%) 1 (2%) 4 (9%) Manager composite returns used for chart population. THE 58 /CA,BOGDAHN GROUP. Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending December 31,2013 Relative Performance 9.0 8.0- 7.0- 6.0- 5.0- 4.0- 3.0- 2.0- ^1 1.0- 4 ! I I�I I . II 1 II I h i 1 1,11.1 I 1 111 11 III 1 II I II 1 1 I, I _I _ I. I I II . 111111111 ICI 1.0 P• i II •I II, ••I, I III i PI Ilia • •III •III I III 1 ill II II 111 V I -2.0- -3.0- -4.0- -5.0- -6.0- -7.0- -8.0-ii_ i T_I i i i r i r i r i i i i i i r I -I- i r 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 12/13 — Cumulative Annualized Over/Under Relative Performance . Over/Under Performance Calculation based on monthly periodicity. TILE 59 Var BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of December 31,2013 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To December 31,2013 No data found. Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 15.81 $440.00 -: 14.00 - $400.00 ■∎ $390.88 11.00 $360.00 ■ 8.00 • $320.00 - 5.00 • L • •2.00 $280.00 ■ • ■ $240.00 ■ 939 re -1.00 ■ $200.00 - -4.00 $160.00 - -7.00 $120.00 - fr -10.00 ■ ' ' ' ' ' ' $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 12/13 •Templeton GI Bond;Adv(TGBAX) 2.71 (4) 2.71 (4) 2.41 (6) 9.06 (3) 5.17 (14) 7.07 (12) 9.40 (19) •Citigroup VVorld Government Bond -1.09 (91) -1.09 (91) -4.00 (81) -1.21 (94) 1.25 (86) 2.21 (90) 2.28 (97) - Templeton GI Bond;Adv(TGBAX) Median 0.71 0.71 -2.18 2.97 3.08 3.87 5.57 - Citigroup world Government Bond Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Jun-2012 Templeton GI Bond;Adv(TGBAX) 1.07 (47) -2.73 (31) 1.41 (9) 3.83 (4) 5.40 (13) -0.99 (97) Citigroup VVorld Government Bond 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (74) 0.92 (38) IM Global Fixed Income(MF)Median 0.97 -3.26 -0.42 1.12 3.45 0.58 THE BOGDAHN 60 l✓ GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of December 31,2013 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years �-,s.o Over o o 0.00 0 8 8 0 0 0 0 0 0 0 Performance o ca:. �a 25.00 0 0 0 0 0 0 0 0 0 0 0 ,z.o O O 0 0 R 9.0 0 O 50.00 0 es O 0 a O as 60 g 75.00 ■ 5 CY v 0 0 0 0 0 0 0 0 0 3.0.- re ffi Under 10030 1 1 V I I I °c. 0.0 Performance 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 12/13 I I I 03 23 43 63 83 10.0 120 14.0 15.5 Total Period 5-25 25-Median Median-75 75-95 Citigroup Wotltl Government Bond(%) Count Count Count Count •Templeton GI Bond;Adv(TGBAX) 20 16(80%) 4(20%) 0 (0%) 0(0%) • Over Performance + Earliest Date X Latest Date if Citigroup VVorld Government Bond 20 6(30%) 3(15%) 1 (5%) 10(50%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 10.48 - - 5.20 • 9.00 • e..3.90 e.. E 6.00 w 2.60 re rc 130 0 3.00 • I I I I I I I I I I I I I I I I I 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 5.60 6.00 6.40 6.80 7.20 7.60 8.00 8.40 8.80 9.20 9.60 9.90 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Templeton GI Bond;Adv(TGBAX) 5.17 9.08 •Templeton GI Bond;Adv(TGBAX) 9.40 9.35 • Citigroup VVorld Government Bond 1.25 4.60 •Citigroup VVorld Government Bond 2.28 6.51 Median 3.08 5.20 Median 5.57 6.09 Historical Statistics-3 Years III Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 7.85 153.24 93.76 4.21 0.53 0.59 0.99 6.43 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.28 1.00 3.02 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) 8.73 134.92 53.08 8.19 0.80 1.00 0.63 6.07 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.36 1.00 4.63 THE 61 (: ) BOGDAHN ♦~� GROUP. Page Intentionally Left Blank 62 Benchmark Historical Hybrid Compositions Total Fund As of December 31,2013 Total Fund Policy Total Equity Policy Allocation Mandate Weight(%) Allocation Mandate Weight(%) Jan-1976 Jan-1970 S&P 500 Index 65.00 S&P 500 Index 90.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 MSCI EAFE Index 5.00 Oct-2003 Oct-2003 S&P 500 Index 85.00 S&P 500 Index 60.00 MSCI EAFE Index 15.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 Sep-2006 S&P 500 Index 100.00 Sep-2006 S&P 500 Index 60.00 Oct-2009 Barclays Intermediate Aggregate Index 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 Oct-2009 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 25.00 MSCI EAFE Index 15.00 Total Domestic Equity Policy Barclays U.S.Treasury:U.S.TIPS Index 5.00 Allocation Mandate Weight(%) NCREIF Property Index 5.00 Jan-1926 Oct-2010 S&P 500 Index 100.00 Russell 3000 Index 50.00 Oct-2009 Barclays Intermediate Aggregate Index 20.00 MSCI EAFE Index 15.00 Russell 3000 Index 100.00 Barclays U.S.Treasury:U.S.TIPS Index 5.00 NCREIF Fund Index-ODCE(VVV) 10.00 Total Fixed Income Policy Allocation Mandate Weight(%) Total Domestic Equity Policy Nov-2000 Allocation Mandate Weight(%) Barclays Aggregate Index 100.00 Jun-2003 MSCI US Broad Market Index 100.00 Sep-2006 Barclays Intermediate Aggregate Index 100.00 Feb-2013 CRSP U.S.Total Market TR Index 100.00 (C , THE BOGDAHN ♦~� GROUP. Compliance Checklist Total Fund Winter Springs GE As of December 31,2013 Total Fund Compliance: Yes No NIA 1.The Total Plan return equaled or exceeded the 8%actuarial earnings assumption over the trailing three and five year periods. ✓ 2.The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3.The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: Yes No NIA 1.Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2.Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 3.Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. ✓ 4.Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. ✓ 5.The total equity allocation was less than 75%of the total plan assets at market. ✓ 6.Total foreign equity was less than 25%of the total plan assets at cost. ✓ Fixed Income Compliance: Yes No NIA 1.Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2.Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3.All separately managed fixed income investments have a minimum rating of investment grade or higher.* ✓ *Less than 1.0%rated below investment grade as reported by the manager. Vanguard RBC Global Galliard TIPS Manager Compliance: Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ ✓ Ma Compliance: Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ 64 The Bogdahn Group Your Service Team Contact Information Nick Rowlands Dave West Department: Performance Measurement Department: Consultant Team _Pi Titl� Performance Analy � i Title: Senior Consu II Direct Phone: 407-520-5355 -- Direct Phone: 863-904-0858 Email: NickR @boRdahnRroup.com Email: DaveW @boRdahnRroup.com John Thinnes Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road,Suite 600 _M� Orlando,Florida 32811 MIL Pho 866-240-7932 Direct Phone: 863-904-0846 Service Team Group Email: ServiceTeam003@bogdahngroup.com JohnT@bogdahngroup.com -- BOGDAHN ♦--- GROUP. 65 Disclosures Total Fund As of December 31,2013 Disclosures Neither The Bogdahn Group,nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust,in excess of the permitted amount. THE 66 (r , BOGDAHN ♦~� GROUP. Report Statistics Definitions and Descriptions Return -Compounded rate of return for the period. Standard Deviation -A statistical measure of the range of a portfolio's performance.It represents the variability of returns around the average return over a specified time period. Sharpe Ratio -Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return.The result is an absolute rate of return per unit of risk.A higher value demonstrates better historical risk-adjusted performance. Alpha -A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta.It determines the portfolio's non-systemic return,or its historical performance not explained by movements of the market. Beta -A measure of the sensitivity of a portfolio to the movements in the market.It is a measure of the portfolio's systematic risk. R-Squared -The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark.A high R-Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Treynor Ratio -Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation.It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk.A higher value indicates a product has achieved better historical risk-adjusted performance. Downside Risk -A measure similar to standard deviation that utilizes only the negative movements of the return series.It is calculated by taking the standard deviation of the negative quarterly set of returns.A higher factor is indicative of a riskier product. Tracking Error -This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Information Ratio -This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error.The higher the Information Ratio,the more the manager has added value to the portfolio. Consistency -The percentage of quarters that a product achieved a rate of return higher than that of its benchmark.Higher consistency indicates the manager has contributed more to the product's performance. Excess Return -Arithmetic difference between the manager's performance and the risk-free return over a specified time period. Active Return -Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Excess Risk -A measure of the standard deviation of a portfolio's performance relative to the risk free return. Up Market Capture -The ratio of average portfolio performance over the designated benchmark during periods of positive returns.A higher value indicates better product performance. Down Market Capture -The ratio of average portfolio performance over the designated benchmark during periods of negative returns.A lower value indicates better product performance THE 67 BOGDAHN �J GROUP. Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result,this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable,but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities,investment consulting,or investment management services. Additional information included in this document may contain data provided by from index databases,public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document,advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses.All information provided by S&P Indices is impersonal and is not tailored to the needs of any person,entity or group of persons.Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance.Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI,Inc. Copyright MSCI,2012. Unpublished. All Rights Reserved. This information may only be used for your internal use,may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an as is"basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. 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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. 68 /CTHE A,BOGDAHN GROUP. THE BOGDAHN GROUP. sintplifiiag your iuvestinent and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Milwaukee Cleveland Dallas