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Home My WebLink About2014 05 13 Regular 601 1st Quarter Investment Return Report Winter Springs General Employees General Plan and Trust Investment Performance Review 1st Quarter 2014 THE r BOGDAHN GROUP 717.B O G D A H N G R O U P.C O M sireplifpirrg i'«ur irrvesb«errt««rl fiduci«rp decisi««s 1st Quarter 2014 Market Environment 1 THE 1 BOGDAHN �`� GROUP The Market Environment Major Market Index Performance As of March 31,2014 • If the first quarter of 2014 is any indication,the euphoria of 2013 appears to Quarter Performance be fading in the rearview mirror.So far this year it has been a much bumpier MSCI ACwxUS 10.6% ride with market volatility above what was seen for almost all of 2013. The MSCI EAFE 0.8% quarter started with a modest sell off but reversed in March after new MSCI Emerg Mkts -0.4% Federal Reserve Chairwoman Janet Yellen offered reassuring comments which helped bolster the market. Overall returns for broad based indices S&P 500 1.8% ranged from slightly negative(-0.4%for the MSCI Emerging Markets index) Russell 3000 I. 2.0% to modestly positive (+1.8%for the S&P 500 and +1.8%for the Barclays Russell 1000 2.0% U.S.Aggregate Bond Index). Russell MidCap I 3.5% Russell 2000 11.1% • Domestic equities proved resilient during the quarter, overcoming profit taking in January and warning signs coming out of emerging markets. Prices Barclays US Agg 1.8% in February and March were mixed but overall returns were generally Barclays us Govt I 1.3% positive.One trend that appears incongruous given the economic uncertainty Barclays US TIPS I 1.9% is the strength found in lower quality companies.While "safe haven"areas Barclays MBS 1.6% such as Utilities and Consumer Staples fared best during the quarter, lower Barclays Corp IG 2.9% quality companies(no earnings, negative free cash flow)outperformed their - higher quality counterparts. 3-Month T-Bill 0.0% • Despite posting close to flat returns during a tumultuous quarter, 1.0% 0.0% 1.0% 2.0% 3.0% 4.0% international equities were the worst performers compared to domestic 1-Year Performance equities and fixed income. Emerging equities ended in slightly negative territory, as the turmoil in Eastern Europe (Russia/Ukraine) drove those MSCI ACVVxUS 2.8% markets down significantly. One-year returns for developed international MSCI EAFE 18.1% equities remained well in positive territory, but emerging market equities MSCI Emerg Mkts continued to struggle with a combined one-year return of-1.1%. S&P 500 21.9°o • The U.S. bond market, represented by the Barclays U.S. Aggregate Bond Russell 3000 zz. Index, rebounded from its weak 2013 performance by rising 1.8%in the first Russell 1000 22. % quarter of 2014. On a trailing,one-year basis bonds returned a weak-0.1%. Russell MidCap 12 .5% Strong quarterly results were broad-based as all three major sectors posted Russell 2000 I 24.9% positive returns, led by the investment grade corporate sector's +2.9% return. U.S. government and mortgage backed securities rose 1.3% and Barclays US Agg -0.1% 1 1.6%, respectively. U.S. TIPS rose 1.9% in the period, but the trailing one- Barclays US Govt -1.2% year return remained in negative territory at-6.5%. Barclays US TIPS -6.5% I Barclays MBS 0.2% Barclays Corp IG 1.5% 3-Month T-Bill 0.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Source:Investment Metrics (��j BOGDAHN 2 `~-" GROUP. The Market Environment Domestic Equity Style Index Performance As of March 31,2014 • In a period marked by higher volatility and general economic uncertainty, it Quarter Performance-Russell Style Series was no surprise that larger cap stocks outperformed their smaller cap 3000 Value 2.9% brethren.Mid caps were the best overall performer(+3.5%)followed by large 3000 Index 12.0% caps (+1.8%) and small caps (+1.1%). Value outpaced growth at all 3000 Growth � 1.1% capitalization levels. • How much did inclement weather impact equity returns during the quarter? 1000 Value W 3.0% The immediate impact was felt via higher utility prices and lower consumer 1000 Index 2.0% spending, which negatively affected many sectors highly correlated to 1000 Growth 1.1% consumer spending. However, real wage increases (nominal wage growth above inflation) and positive economic leading indicators suggest that MidCap Value 5.2% continued economic growth is a strong possibility. Given that backdrop,the temporary quarterly slowdown appears to be a weather related MidCap Index 3.5% phenomenon. MidCap Growth • As of March 2014,intra stock correlations(-0.33),while above the long-term 2000 Value 1.8% average(-0.26 since 1926),reached one of the lowest points since the early 2000 Index 1.1% 2000's. This bodes well for the future success of actively managed 2000 Growth M 0.5% strategies. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% • Current valuations remain fair. The March 31, 2014 valuation on the S&P 500 (1,872 or 15.2x forward looking earnings) was within a historically 1-Year Performance-Russell Style Series normal trading range for the index. In fact,the current level is far below the 3000 Value 21.7% inflection point seen on March 24, 2000 (26x) and is not dissimilar to the 3000 Index 22.6°. trough valuation seen on October 9,2002,when the market traded at 14.1x 3000 Growth 23.5% and subsequently appreciated from$777 to$1,565(15.2x)over the next five -- years. 1000 Value 21.6% • One reason why valuations did not increase commensurate with market 1000 Index 22.4% performance was the impact of corporate share repurchases. Fewer shares loon Growth 23.,% outstanding result in higher earnings per share,which is the denominator in the price-to-earnings multiple. Stock buybacks increased 15% in 2013 to MidCap Value _ 23.0% $445 billion. MidCap Index 23.5% • On an absolute basis, small cap stocks are more expensive relative to their MidCap Growth 24.2% mid and large cap counterparts (18.9x PE versus 18.2x and 15.2x, respectively). However, relative to their long term averages, small cap 2000 Value _ 22.6% valuations are in-line with mid cap. Both are slightly expensive relative to 2000 Index 24.9% large caps,especially on the value side. 2000 Growth 27.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Source:Investment Metrics (1.N THE 3 BOGDAHN N.4,--' GROUP. The Market Environment GICS Sector Performance&(Sector Weight) As of March 31,2014 • Sector selection had a bigger impact on active manager outperformance Russell 1000 I oQuarter o1-Year 1 during the quarter than has been seen in recent periods. The "defensive" Consumer Disc(13.2%) M sectors of Utilities, Health Care and Consumer Staples were largely left -2.0% 1 26.1% behind during a very strong 2013 market rally witnessed across all Consumer Staples(8.8%) 0.6% I capitalizations and styles. As investor uncertainty increased in the first 11.3% quarter,the shift to more stable areas of the market was evident, given the Energy(9.5%) 1.s% q 9 1 15.4% rebound experienced in these three areas. = 3.0% Financials(17.0%) 22.4% • REITs had a positive impact on the performance of the Financials sector Health Care(13.0%) 5.9% within the large cap segment of the market during the quarter. While 1 29.7% investors largely sold off REIT exposure in 2013 due to fears of rising rates, Industrials(11.4%) I 0.5% interest rates trended lower in early 2014,and REITs advanced 10.4%. 27.5% Info Technology(18.3%) 2.3% I 26.2% • Consumer Discretionary was a negative contributor to performance in both 3.2% the small and large cap benchmarks during the period. Again, most of the Materials 1 22.4% impact could be weather related. Many analysts highlighted the soft retail Telecom Services(2.2%) -0.4% and auto sales figures in the first quarter to the colder than normal winter I 3.9% and its impact on consumer spending. Utilities(3.0%) 9.7% 10.1% • On an absolute valuation basis, when viewed across a ten-year trailing -5.0% 0.0% 5.0% 100% 15.0% 20.0% 25.0% 300% 35.0% period ending March 31, 2014, Financials, Energy and Telecom were the Russell 2000 •Quarter ❑1-Year most attractively valued areas within the S&P 500. Each sector traded at approximately 13-14 times forward earnings per share. By contrast, Health Consumer Disc(13.3%) -32% V Care, Materials, and both Consumer sectors were the most expensive at zs.e% approximately 17 times. Relative to the ten-year average, only two sectors Consumer Staples(3.6%) 1.a% 1 33.0% currently trade at below average valuations: Telecom and Information - 1 4.8% Technology. Energy(5.5%) I 22.1% Financials(22.8%) 1.4% • Health Care continued to dominate by placing seven stocks within the top 17.2% ten small cap performers during the quarter,continuing a trend that started in Health Care(13.7%) l 3.9% late 2013. Biotech companies now make up over 9% of the Russell 2000 3s.a% Growth benchmark. The top ten list in large cap was more uniform with Industrials(14.4%) 0 5% p 9 p 1 26.8% Health Care, Information Technology, and Industrials all placing two stocks I 0.4% on the list. Info Technology(18.0%) I 30.8% Materials(4.9%) ■ 0.8% • The two Consumer sectors,plus Information Technology,accounted for 60% 1 14.900 of the top ten negative contributors within large cap during the period.Within Telecom Services(0.8%) 12.9% I 31.4% small caps, underperformance was less concentrated by sector, which is understandable given that small cap stocks are less impacted by Utilities s.a% 9 p p Y I 13.5% macroeconomic variables versus idiosyncratic company fundamentals. ' -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Source:Morningstar Direct (0.141 THE 4 ) BOGDAHN `~-'°' GROUP. The Market Environment Top 10 Index Weights&Quarterly Performance for the Russell 1000&2000 As of March 31,2014 Russell 1000 Apple Inc 2.61% -3.8% 24.3% Information Technology American Realty Capital Properties 0.39% 11.1% 2.1% Financials Exxon Mobil Corporation 2.25% -2.8% 11.4% Energy AthenaHealth, Inc. 0.35% 19.1% 65.1% Health Care Microsoft Corporation 1.77% 10.4% 47.5% Information Technology Acuity Brands Inc 0.34% 21.4% 92.3% Industrials Google Inc Class A 1.55% -0.6% 40.3% Information Technology CoStar Group,Inc. 0.32% 1.2% 70.6% Information Technology Johnson&Johnson 1.43% 8.0% 24.0% Health Care SunEdison Inc 0.30% 44.4% 328.2% Information Technology General Electric Co 1.39% -6.8% 15.7% Industrials Northstar Realty Finance Corporation 0.30% 21.9% 84.1% Financials Wells Fargo&Co 1.24% 10.3% 38.4% Financials Middleby Corporation 0.30% 10.2% 73.7% Industrials Chevron Corp 1.19% -4.0% 3.5% Energy Isis Pharmaceuticals 0.29% 8.5% 155.1% Health Care JPMorgan Chase&Co 1.19% 4.5% 31.5% Financials Rite Aid Corporation 0.27% 23.9% 230.0% Consumer Staples Berkshire Hathaway Inc Class B 1.16% 5.4% 19.9% Financials Kate Spade&Co 0.27% 15.7% 96.5% Consumer Discretionary Top 10 Performing Stocks(by Quarter) III lk Top 10 Performing Stocks(by Quarter) ■0 Weight 1-Qtr 1-Year Sector In Weight 1-Qtr 1-Year Sector Return Return Return Return Myriad Genetics,Inc. 0.01% 63.0% 34.6% Health Care Intercept Pharmaceuticals Inc 0.14% 383.0% 781.8% Health Care Forest Laboratories,Inc. 0.13% 53.7% 142.6% Health Care InterMune, Inc. 0.18% 127.2% 269.8% Health Care Freescale Semiconductor Ltd 0.01% 52.1% 63.9% Information Technology Endocyte,Inc. 0.04% 122.9% 91.2% Health Care Nabors Industries Ltd 0.04% 45.3% 53.4% Energy RCS Capital Corp Class A 0.00% 113.1% NA Financials American Airlines Group Inc 0.04% 45.0% NA Industrials Pernix Therapeutics Holdings,Inc. 0.01% 112.3% 7.9% Health Care FireEye Inc 0.01% 41.2% NA Information Technology Furiex Pharmaceuticals, Inc. 0.03% 107.1% 132.1% Health Care Keurig Green Mountain Inc 0.08% 40.2% 86.6% Consumer Staples Horizon Pharma Inc 0.05% 98.4% 457.9% Health Care Tesla Motors, Inc. 0.09% 38.6% 450.1% Consumer Discretionary GT Advanced Technologies Inc 0.14% 95.6% 416.7% Information Technology Royal Gold,Inc. 0.02% 35.9% -10.4% Materials Harvard Apparatus Reg Technology 0.00% 90.9% NA Health Care Engility Holdings Inc 0.00% 34.9% 87.9% Industrials McClatchy Company Class A 0.02% 88.8% 121.4% Consumer Discretionary Bottom 10 Performing Stocks(by Quarter' , Bottom 10 Performing Stocks(by Quarter) 1-Qtr IMINN■lector 1-Qtr 1-Year Russell 1000 Weight II I ht Sector Return Return Return Return NII Holdings Inc 0.00% -56.7% -72.5% Telecommunication Services Dolan Co 0.00% -97.7% -99.3% Industrials Walter Energy Inc 0.00% -54.5% -73.2% Materials Global Geophysical Services,Inc. 0.00% -92.6% -95.1% Energy Alpha Natural Resources Inc 0.00% -40.5% -48.2% Energy GSE Holding Inc 0.00% -86.0% -96.5% Materials Nu Skin Enterprises, Inc.Class A 0.03% -39.8% 90.4% Consumer Staples Body Central Corp 0.00% -72.8% -88.6% Consumer Discretionary UTi Worldwide,Inc. 0.00% -39.7% -26.6% Industrials Ventrus Biosciences,Inc. 0.00% -66.6% -57.4% Health Care Weight Watchers International, Inc. 0.00% -37.6% -50.8% Consumer Discretionary KiOR Inc 0.00% -65.9% -87.7% Energy 3D Systems Corporation 0.03% -36.3% 83.5% Information Technology American Apparel,Inc. 0.00% -59.3% -76.9% Consumer Discretionary NeuStar,Inc. 0.01% -34.8% -30.1% Information Technology Fairway Group Holdings Corp Class A 0.01% -57.9% NA Consumer Staples Groupon Inc 0.02% -33.4% 28.1% Consumer Discretionary NII Holdings Inc 0.01% -56.7% -72.5% Telecommunication Services Best Buy Co Inc 0.04% -33.3% 21.8% Consumer Discretionary Geron Corporation 0.02% -55.9% 95.3% Health Care Source:Morningstar Direct �1.".4\ THE 5 BOGDAHN Li--, GROUP. The Market Environment International and Regional Market Index Performance(Country Count) As of March 31,2014 • While the final return for the first quarter of 2014 showed little change Quarter Performance I ❑USD ❑LocalCurrency from year-end 2013, the path through the quarter was extremely AC world x US(43) 0.6% uncomfortable.Non-US equity indices were down over 4%in January but 0.2% then reversed up 5% in February. March returns ended fairly flat, but, WORLD x US(22) 0.9% once again,the intra-month volatility was significant. °.3% EAFE(21) 0.8% • Developed international equities were generally positive during the -0.2% quarter. However,Japan's results were a large exception. In local terms, Europe&ME(16) 2.3% Japan was down over 7%, but yen appreciation buffered U.S. investors 2.0% slightly as the return was-5.5%in USD terms.The strongest international Pacific(5) -4.6% -z.4/o developed markets for the first quarter were New Zealand, Denmark, Ireland,and Italy. Emerging Mkt(21) -0.4% -0.5% • Emerging equities continued to underperform moderately as a whole,but EM Europe&ME(8) -6.5% returns were segmented by region. Equities in Russia were on the 3.si extreme end of underperformance, returning -14.5%. Russia's invasion EM Asia(8) -0.2 and annexation of the Crimea region in Ukraine caused investors in 0.3% Russian equities to flee. Indonesia was on the other end of the EM Latin Amer(5) 0.4% -1.7% performance extreme as the country's equity market ended the quarter up 21.2%. -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 1-Year Performance I ■USD ❑Local Currency I • Currency moves were generally favorable to U.S. investors in overseas assets with the biggest exception being Russia. AC world x US(43) 12.8% 13.1% • Overall,for non-US equities,defensive sectors(Health Care and Utilities) WORLD x US(22) 17.0% 15.9% turned in the best performance for the quarter. Consumer Discretionary (-2.0%) was the worst performing sector within the MSCI EAFE Index, EAFE(21) 1 .1% 5.9% while Telecom (-5.8%)was the worst performing sector within the MSCI EM Index. Europe&ME(16) 25.2/0 6.4% 5.3% • Value outperformed growth in developed equities, while growth Pacific(5) 1 14.4% outperformed value among emerging equities. Small cap companies -1.1% r outperformed large caps within non-US equities. Emerging Mkt(21) 3.8% EM Europe&ME(8) -7.7 -0.7% L EM Asia(8) I 3.4 5.3% EM Latin Amer(5) -13.6% 4.9 -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Source:MSCI Global Index Monitor(Returns are Gross) 1� THE 6 ( / BOGDAHN `~� GROUP. The Market Environment U.S. Dollar International Index Attribution&Country Detail As of March 31,2014 Sector Weight Quarter Return 1-Year Return MSCI-EAFE MSCI-ACWIxUS Quarter Consumer Discretionary 11.8% -2.0% 23.7% Country Weight Weight Return United Kingdom 21.1% 15.2% -0.8% 16.8% Consumer Staples 11.0% 0.7% 6.3% Japan 19.7% 14.2% -5.5% 7.8% Energy 6.9% 1.8% 16.5% France 10.4% 7.5% 3.0% 30.6% Financials 25.6% -0.3% 18.2% Germany 9.5% 6.8% -0.3% 31.7% Switzerland 9.3% 6.7% 5.1% 20.1% Health Care 10.4% 6.2% 21.7% Australia 7.9% 5.7% 6.0% 1.3% Industrials 13.0% 0.6% 19.1% Spain 3.6% 2.6% 4.8% 46.5% Information Technology 4.5% -0.3% 20.3% Sweden 3.3% 2.4% 3.0% 18.2% Hong Kong 2.8% 2.0% -3.4% 3.7% Materials 8.1% 0.7% 9.0% Netherlands 2.8% 2.0% 1.1% 30.1% Telecommunication Services 5.0% -2.1% 35.6% Italy 2.6% 1.9% 14.6% 54.1% Utilities 3.8% 7.2% 24.2% Singapore 1.5% 1.1% -0.9% -2.1% Denmark 1.4% 1.0% 16.5% 40.6% Total .0.0% % Belgium 1.2% 0.9% 2.4% 21.1% Finland 0.9% 0.7% 0.3% 44.0% MSCI-ACWIxUS Sector Weight Norway 0.8% 0.6% 2.2% 12.3% Consumer Discretionary 10.8% -0.8% 21.7% Israel 0.5% 0.4% 18.7% 24.0% Consumer Staples 9.9% 0.4% 4.0% Ireland 0.3% 0.2% 14.2% 43.4% Austria 0.3% 0.2% -2.7% 16.5% Energy 9.1% 0.8% 7.6% Portugal 0.2% 0.1% 9.7% 23.6% Financials 26.6% -0.4% 11.9% New Zealand 0.1% 0.1% 16.7% 18.0% Health Care 8.2% 6.0% 21.8% otal EAFE Countries Canada 7.3% 1.8% 7.2% Industrials 11.2% 0.4% 16.2% otal Developed Countries 79.4% Information Technology 6.8% 1.8% 18.6% China 3.9% -5.9% 2.5% Materials 8.7% 0.1% 0.1% Korea 3.3% -2.0% 5.5% Taiwan 2.5% 1.1% 11.2% Telecommunication Services 5.2% -2.9% 22.0% Brazil 2.3% 2.9% -12.7% Utilities 3.5% 6.2% 17.1% South Africa 1.6% 4.9% 8.4% Total 100.0% L r India 1.4% 8.2% 6.7% Russia 1.1% -14.5% -10.5% MSCI-Emerging Mkt Sector Weight Mexico 1.1% -5.0% -10.2% Malaysia 0.8% -0.4% 8.2% Consumer Discretionary 9.3% 3.9% 12.7% Indonesia 0.6% 21.2% -17.8% Consumer Staples 8.5% -1.3% -6.8% Thailand 0.5% 7.5% -16.4% Energy 10.8% -4.5% -9.1% Poland 0.4% 3.4% 21.2% Turkey 0.3% 4.8% -28.8% Financials 26.7% -0.4% -5.9% Chile 0.3% -2.2% -26.5% Health Care 1.7% 1.6% 8.1% Colombia 0.2% 5.1% -11.3% Industrials 6.5% 0.0% 0.2% Philippines 0.2% 10.3% -9.1% Greece 0.1% 18.1% 58.1% Information Technology 16.7% 4.0% 17.6% Peru 0.1% 4.4% -24.9% Materials 9.4% -3.5% -10.8% Czech Republic 0.1% 7.6% 15.1% Telecommunication Services 6.9% -5.8% -2.1% Hungary 0.1% -8.7% -7.9% Egypt 0.0% 9.2% 32.5% Utilities 3.5% 2.8% -1.9% Total Emerging Countries 20.6% Total 100.0% -0.4% Total ACWIxUS Countries 100.0% . Source:MSCI Global Index Monitor(Returns are Gross in USD) % THE 7 ( , BOGDAHN �'J GROUP. The Market Environment Domestic Bond Sector&Broad/Global Bond Market Performance(Duration) As of March 31,2014 • Domestic bonds began 2014 with a strong rally, rising 1.5% amid Quarter Performance lackluster economic news and turmoil in several emerging economies AAA(5.17) _ 11.4% (Argentina, Turkey, Venezuela, and China). Market sentiment turned AA(5.59) - 1 2.1% bullish, and bond markets traded flat-to-higher in February (0.5%) despite the recent economic and geopolitical unrest in Ukraine and A(6.9s) z.7i Venezuela. In March, bonds posted modest declines (-0.2%) after the Baa(7.33) 3.6i FOMC minutes revealed support for continued tapering of the Federal U.S.High Yield(4.02) 3.0% Reserve's quantitative easing program as well as a more hawkish tone in U.S.Treasury(5.14) 1.3%_il regards to an increase in the fed funds rate in 2015. Though the quarter ended with a down month, the losses detracted only a modest amount U.S.Mortgage(5.51) s% from gains earned earlier in the quarter. U.S.Corporate IG(7.030) I 2.9% U.S.TIPS(6.77) 1.9% • Each of the three key investment grade sectors rose during the first quarter. Corporate bonds were the strongest performing segment of the market, returning 2.9%. Following credit was the securitized sector Aggregate(5.65) 1.8% (1.6%) and Treasury/Agency securities (1.3%). On a trailing twelve Intermediate Agg(4.41) 1.2% month basis, returns are mixed with the credit and mortgage sectors Global Agg x US(6.81) 2.8% landing in positive territory and government securities down-1.3%. Multiverse(6.19) ME, 2.4% • The trend of low quality bonds outperforming higher quality securities 0.0% 1.0% 2.0% 3.0% 4.0% continued for yet another quarter. Bonds rated Baa rose 3.6%,followed 1-Year Performance by A-rated(2.7%),AA-rated(2.1%),and AAA-rated(1.4%). AAA(5.17) j -0.6% • Renewed buying of longer-dated Treasuries resulted in the broad-based AA(5.59) -0.1% Barclays Aggregate Index outperforming short and intermediate bonds A(6.9s) 1.0% during the first quarter. Baa(7.33) M 1.7% 7.5% • High yield bonds continued their strong performance exceeding U.S.High Yield(4.02) investment grade credit for the seventh consecutive quarter(3.0%versus U.S.Treasury(5.14) -1.3% 2.9%). The continued demand for income resulted in securities rated - below investment grade outperforming investment grade by 600 basis U.S.Mortgage(5.51) 0.2% points(bps)over the past twelve months. U.S.Corporate IG(7.030) I 1.5% U.S.TIPS(6.77) -6.5% • After underperforming U.S. bonds in the fourth quarter, international - bonds, represented by the Barclays Global Aggregate ex U.S. Index, surpassed their domestic bond counterparts (2.8% versus 1.8%). The Aggregate(5.65) -0.1% strong showing pushed international bonds ahead of the U.S. market by Intermediate Agg(4.41) 0.0% 3.3%on a trailing, one-year basis. Global Agg x US(6.81) -' Multiverse(6.19) I 2.2% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source:Barclays Capital Live ^ THE 8 i ` BOGDAHN `� GROUP. The Market Environment Market Rate&Yield Curve Comparison As of March 31,2014 1-Year Trailing Market Rates 4.00 • After ending 2013 with a 2.0% annual decline, the U.S. bond market, represented by the Barclays U.S. Aggregate Bond Index, rose 1.8% in 3.50 Fed Funds Rate TED Spread . .3-Month Libor the first quarter.Weak economic news,coupled with greater visibility and —BAA OAS —loyr Treasury �10yr TIPS guidance from the Federal Reserve, resulted in greater demand for 3.00 - domestic bonds during the quarter. Strength in longer-dated maturities and the corporate bond sector led market returns higher. 2.50 - 2.00 -■ Other than modest weakness in March, yield levels for maturities five years and under were mostly unchanged during the first quarter. 1.50 - However, rates on longer-dated bonds (10 to 30-year maturities) declined between 31 and 41 bps during the period. Most of the decline 1.00 - in rates occurred in January in response to weaker economic news and troubles in emerging market countries. 0.50 - 0.00 • Although the yield curve flattened in the first quarter, it still provides investors a sizable yield gain for extending maturities, especially in -0.50 intermediate maturities. The spread between key points on the yield curve is shown below. -1.00 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 2-5 Year U.S.Treasury 129 bps Treasury Yield Curve 5-10 Year U.S.Treasury 100 bps 4.00 - 10-30 Year U.S.Treasury 86 bps X12/31/2012 ♦9/30/2013 ,"■•12/31/2013 —L13/31/2014 • 3.50 • The recent rise in interest rates has pushed yields to more attractive ,m levels, particularly in longer-dated maturities,which now carry a yield in excess of the current rate of inflation. The higher yields helped propel 3.00 bonds to an increasingly rare quarter of strong performance. Despite the 2.50 - solid quarter, the overall outlook for domestic bond markets remains • challenging due to rates remaining well below historical averages. 2.00 _____ _____ ______ _____ ____ - - 1.50 1.00 0.50 0.00 - 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source:US Department of Treasury,FRED(Federal Reserve of St.Louis) 0.141 THE 9 (� , BOGDAHN Nair GROUP. Asset Allocation Summary Total Fund As of March 31,2014 Asset Allocation By Segment as of Asset Allocation By Segment as of December 31,2013:$34,567,602 March 31,2014:$35,374,185 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 19,041,959 55.1 • Domestic Equity 16,003,501 45.2 • International Equity 5,491,201 15.9 • International Equity 5,718,159 16.2 • Fixed Income 5,624,366 16.3 • Fixed Income 5,704,963 16.1 • Global Fixed Income 1,338,127 3.9 • Global Fixed Income 1,345,056 3.8 • Real Estate 2,788,387 8.1 • Real Estate 2,851,297 8.1 • Cash Equivalent 283,562 0.8 • Cash Equivalent 3,751,209 10.6 THE 10 (C , BOGDAHN ♦~� GROUP. Asset Allocation Summary Total Fund As of March 31,2014 Asset Allocation By Manager as of Asset Allocation By Manager as of December 31,2013:$34,567,602 March 31,2014:$35,374,185 Allocation Allocation Market Value Allocation Market Value Allocation •Vanguard Total Stock Market(VITSX) 19,041,959 55.1 •Vanguard Total Stock Market(VITSX) 16,003,501 45.2 • RBC Global(Voyageur) 5,491,201 15.9 • RBC Global(Voyageur) 5,718,159 16.2 • Galliard Core Fixed Income 4,463,859 12.9 • Galliard Core Fixed Income 4,527,502 12.8 • Intercontinental 2,012,082 5.8 Receipt&Disbursement 3,737,282 10.6 • Templeton Global Bond Fund(TGBAX) 1,338,127 3.9 • Intercontinental 2,061,780 5.8 • Galliard TIPS 1,168,392 3.4 • Templeton Global Bond Fund(TGBAX) 1,345,056 3.8 •American Core Realty Fund 785,657 2.3 • Galliard TIPS 1,181,946 3.3 Receipt&Disbursement 266,325 0.8 •American Core Realty Fund 798,958 2.3 THE 11 c: ) BOGDAHN ♦~� GROUP. Page Intentionally Left Blank 12 Asset Allocation vs.Target Allocation Total Fund As of March 31,2014 Asset Allocation vs.Target Allocation Vanguard Total Stock Market- -4.8 RBC Global(Voyageur)- 1.2% Galliard Core Fixed Income- -2.2 Galliard TIPS- -1.7 Templeton Global Bond Fund(TGBAX)- -1.2 American Core Realty Fund- Intercontinental- ■0.8% Receipt&Disbursement- Galliard Cash- 0.0% -9.0% -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 10.0% Allocation Differences Market Value Allocation(%) Target(%) - Vanguard Total Stock Market 16,003,501 45.2 50.0 RBC Global(Voyageur) 5,718,159 16.2 15.0 Galliard Core Fixed Income 4,527,502 12.8 15.0 Galliard TIPS 1,181,946 3.3 5.0 Templeton Global Bond Fund(TGBAX) 1,345,056 3.8 5.0 American Core Realty Fund 798,958 2.3 5.0 Intercontinental 2,061,780 5.8 5.0 Receipt&Disbursement 3,737,282 10.6 0.0 Galliard Cash - - 0.0 Total Fund 35,374,185 100.0 THE 13 BOGDAHN �`-� GROUP. Asset Allocation History Total Fund As of March 31,2014 Historical Asset Allocation by Portfolio Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 ($) / ($) / ($) / ($) / ($) Total Equity 21,721,660 61.41 24,533,160 70.97 21,747,126 68.36 20,350,900 67.30 19,894,108 67.00 Total Domestic Equity an. 16,003,501 45.24 19,041,959 55.09 16,832,629 52.91 15,836,585 52.37 15,409,934 51.90 Dalton All Cap Value Equity - 0.00 - 0.00 - 0.00 - 0.00 - 0.00 Vanguard Total Stock Market(VITSX) 16,003,501 45.24 19,041,959 55.09 16,832,629 52.91 15,836,585 52.37 15,409,934 51.90 Total International Equity_ 5,718,159 16.16 5,491,201 15.89 ' 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 RBC Global(Voyageur) 5,718,159 16.16 5,491,201 15.89 4,914,496 15.45 4,514,315 14.93 4,484,174 15.10 Total Fixed Income 7,054,505 19.94 6,970,377 20.16 6,638,552 20.87 6,601,194 21.83 6,798,996 22.90 Total Domestic Fixed Income 5,709,449 16.14 5,632,251 16.29 5,652,293 17.77 5,615,698 18.57 5,776,095 19.45 Galliard Core Fixed Income 4,527,502 12.80 4,463,859 12.91 4,465,982 14.04 4,440,244 14.68 4,528,336 15.25 Galliard TIPS 1,181,946 3.34 1,168,392 3.38 1,186,311 3.73 1,175,454 3.89 1,247,759 4.20 Total Global Fixed Income 1,345,056 3.80 1,338,127 3.87 986,260 3.10 985,496 3.26 1,022,901 3.44 Templeton Global Bond Fund(TGBAX) 1,345,056 3.80 1,338,127 3.87 986,260 3.10 985,496 3.26 1,022,901 3.44 Total Real Estate 2,860,739 8.09 2,797,739 8.09 2,717,434 8.54 2,638,175 8.72 2,549,800 8.59 American Core Realty Fund 798,958 2.26 785,657 2.27 777,069 2.44 762,601 2.52 748,761 2.52 Intercontinental 2,061,780 5.83 2,012,082 5.82 1,940,365 6.10 1,875,574 6.20 1,801,039 6.07 Receipt&Disbursement 3,737,282 10.56 266,325 0.77 707,646 2.22 646,590 2.14 449,712 1.51 Gaillard Cash - 0.00 - 0.00 216 0.00 216 0.00 216 0.00 Total Fund Portfolio 35,374,185 100.00 3=02 100.00 31,810,974 100.00 30,237,076 100.00 29,692,832 100.00 THE 14 r BOGDAHN `'� GROUP. Asset Allocation History Total Fund As of March 31,2014 Historical Asset Allocation by Segment 90.0 75.0 60.0 c 0 45.0 30.0 15.0 0.0 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 Domestic Equity • International Equity • Fixed Income • Global Fixed Income • Real Estate • Cash Equivalent T7tE 15 (C , BOGDAHN ♦~� GROUP. Page Intentionally Left Blank 16 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of March 31,2014 76.0 68.0- 60.0- 52.0- 44.0- ° 36.0- c CO 0 C.) _ 228.0- a 20.0- 12.0- • • 4.0- • ■ -4.0- -12.0 US Equity Intl.Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash •Total Fund Portfolio 45.24 (49) 16.16 (44) 16.14 (88) 3.80 (78) 0.00 8.09 (30) 10.56 (3) 5th Percentile 60.69 26.57 44.03 10.00 36.98 11.80 4.99 1st Quartile 51.65 21.01 32.78 5.31 18.87 8.58 2.02 Median 44.67 15.56 26.70 4.64 10.02 6.14 1.14 3rd Quartile 33.47 13.13 20.98 3.97 4.73 4.44 0.54 95th Percentile 19.90 8.30 12.63 1.58 1.53 2.14 0.12 THE 17 BOGDAHN `~' GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31,2014 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec.1 Market Value 0110112014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Equity 24,533,160 -3,372,283 - - -12,717 -818 109,320 464,997 21,721,660 Total Domestic Equity 19,041,959 -3,385,000 - - - - 69,539 277,003 16,003,501 Vanguard Total Stock Market(VITSX) 19,041,959 -3,385,000 - - - - 69,539 277,003 16,003,501 Total International Equity 5,491,201 12,717 - - -12,717 -818 39,781 187,995 5,718,159 RBC Global(Voyageur) 5,491,201 12,717 - - -12,717 -818 39,781 187,995 5,718,159 Total Fixed Income 6,970,377 -3,250 - - - -147 16,492 71,032 7,054,505 Total Domestic Fixed Income 5,632,251 - - - - -147 3,243 74,102 5,709,449 Galliard Core Fixed Income 4,463,859 - - - - - - 63,643 4,527,502 Galliard TIPS 1,168,392 - - - - -147 3,243 10,459 1,181,946 Total Global Fixed Income 1,338,127 -3,250 =- - - 13,250 -3,070 1,345,056 Templeton Global Bond Fund(TGBAX) 1,338,127 -3,250 - - - - 13,250 -3,070 1,345,056 Total Real Estate 2,797,739 -9,352 -2,203 - 9,441 65,114 2,860,739 American Core Realty Fund 785,657 -9,352 - - -2,203 - 9,441 15,415 798,958 Intercontinental 2,012,082 - - - - - - 49,698 2,061,780 Receipt&Disbursement 266,325 3,384,885 602,393 -491,040 - -25,304 21 - 3,737,282 Galliard Cash - - - - - - - - - Total Fund Portfolio - -26,268 135,275 601,143 35,374,185 THE 18 r BOGDAHN L.,.....• GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2013 To March 31,2014 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec.1 Market Value 1010112013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Equity 21,747,126 -2,856,476 - - -24,072 -2,361 222,900 2,634,543 21,721,660 Total Domestic Equity 16,832,629 -2,880,548 - - - - 164,676 1,886,743 16,003,501 Vanguard Total Stock Market(VITSX) 16,832,629 -2,880,548 - - - - 164,676 1,886,743 16,003,501 Total International Equity 4,914,496 24,072 - - -24,072 -2,361 58,223 747,800 5,718,159 RBC Global(Voyageur) 4,914,496 24,072 - - -24,072 -2,361 58,223 747,800 5,718,159 Total Fixed Income 6,638,552 319,395 - - -445 -294 32,768 64,529 7,054,505 Total Domestic Fixed Income 5,652,293 - - - -445 -294 5,862 52,034 5,709,449 Galliard Core Fixed Income 4,465,982 - - - - - - 61,521 4,527,502 Galliard TIPS 1,186,311 - - - -445 -294 5,862 -9,487 1,181,946 Total Global Fixed Income 986,260 319,395 - - - = 26,906 12,496 1,345,056 Templeton Global Bond Fund(TGBAX) 986,260 319,395 - - - - 26,906 12,496 1,345,056 Total Real Estate 2,717,434 -18,513 - - -31,689 36,384 157,123 2,860,739 American Core Realty Fund 777,069 -18,513 - - -4,370 - 18,793 25,979 798,958 Intercontinental 1,940,365 - - - -27,319 - 17,591 131,143 2,061,780 Receipt&Disbursement 707,646 2,553,020 1,496,307 -986,349 - -33,383 41 - 3,737,282 Galliard Cash 216 2,575 - - -2,791 - - - - Total Fund Portfolio 31,810,974 - 1,496,307 -986,349 -58,998 292,093 2,856,195 35,374,185 19 r BOGDAHN �'J GROUP. Comparative Performance Trailing Returns Total Fund As of March 31,2014 Comparative Performance Trailling Returns ' QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) 2.09 (26) 9.66 (4) 10.37 (8) 15.46 (17) 5.51 (68) 1110112000 Total Fund Policy 1.69 (55) 7.90 (30) 14.82 (15) 10.86 (5) 15.12 (25) 5.12 (87) All Public Plans-Total Fund Median 1.74 7.34 12.79 8.96 14.09 5.86 Total Fund(New Mgrs)(Net) 2.09 (26) 9.66 (4) 16.57 (4) 10.37 (8) 15.46 (17) 5.11 (48) 10/01/2007 Total Fund Policy 1.69 (55) 7.90 (30) 14.82 (15) 10.86 (5) 15.12 (25) 6.05 (15) All Public Plans-Total Fund Median 1.74 7.34 12.79 8.96 14.09 5.07 Total Fund(Gross) 2.13 (24) 9.85 (3) 16.92 (3) 11.04 - (4) 16.18 6.21 (30) 1110112000 Total Fund Policy 1.69 (55) 7.90 (30) 14.82 (15) 10.86 (5) 15.12 (25) 5.12 (87) All Public Plans-Total Fund Median 1.74 7.34 12.79 8.96 14.09 5.86 Total Fund(New Mgrs)(Gross) 2.13 (24) 9.85 (3) 16.92 (3) 11.04 (4) 16.17 (9) 5.75 (21) 10/01/2007 Total Fund Policy 1.69 (55) 7.90 (30) 14.82 (15) 10.86 (5) 15.12 (25) 6.05 (15) All Public Plans-Total Fund Median 1.74 7.34 12.79 8.96 14.09 5.07 Total Equity 2.31 13.03 22.23 6.13 Total Equity Policy 1.70 10.94 21.62 13.06 19.85 4.63 Total Domestic Equity 1.85 (64) 12.14 (66) 22.49 (58) 13.17 (77) 21.35 (44) 5.81 (40) 11/01/2000 Total Domestic Equity Policy 1.97 (60) 12.28 (63) 22.61 (56) 14.61 (57) 21.59 (40) 4.18 (87) IM U.S.Large Cap Core Equity(SA+CF)Median 2.12 12.75 22.91 14.83 21.06 5.35 Total International Equity 4.15 (6) 16.40 (1) 27.61 (7) 13.68 (4) 25.85 (2) 7.04 (65) 11/01/2000 MSCI EAFE Index 0.77 (62) 6.56 (64) 18.06 (58) 7.72 (49) 16.56 (51) 4.89 (96) IM International Large Cap Value Equity(SA+CF)Median 1.14 7.36 19.60 7.47 16.62 7.51 Total Fixed Inc. 1110112000 Total Fixed Policy 1.20 1.06 0.01 3.04 4.24 5.31 Total Domestic Fixed Income 1.37 1.02 -1.07 3.28 5.64 5.34 11/01/2000 Total Domestic Fixed Policy 1.20 1.06 0.01 3.04 4.24 5.31 Total Global Fixed Income 0.74 (96) 3.48 (29) 1.75 (33) N/A N/A 8.09 (5) 12/01/2011 Total Global Fixed Income Policy 2.66 (41) 1.55 (90) 1.37 (39) N/A N/A 0.45 (93) IM Global Fixed Income(MF)Median 2.43 2.78 0.82 3.36 6.34 3.65 IIMIIM. 771111 10/01/2007 NCREIF Fund Index-ODCE(EVV)(Net) 2.45 5.65 13.21 12.82 7.18 1.78 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. Intercontinental Returns are preliminary 20 Var BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of March 31,2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global(Voyageur) 4.15 (6) 16.40 (1) 27.61 (7) 13.68 (4) 25.85 (2) 3.87 (12) 11/01/2007 MSCI EAFE Index 0.77 (62) 6.56 (64) 18.06 (58) 7.72 (49) 16.56 (51) -0.03 (75) IM International Large Cap Value Equity(SA+CF)Median 1.14 7.36 19.60 7.47 16.62 0.88 Vanguard Total Stock Market(VITSX) 2.04 (42) 12.32 (33) 22.69 (45) N/A N/A 25.13 (45) 03/01/2013 Vanguard Total Stock Market Index Hybrid 2.04 (42) 12.33 (33) 22.75 (44) 14.69 (25) 22.10 (25) 25.20 (44) IM U.S.Multi-Cap Core Equity(MF)Median 1.77 11.41 22.31 12.93 20.44 24.79 Galliard Core Fixed Income 1.43 (29) 1.38 (51) -0.02 (80) 3.61 (47) 6.06 (22) 4.62 (85) 10/01/2007 Barclays Intermediate Aggregate Index 1.20 (49) 1.06 (80) 0.01 (78) 3.04 (81) 4.24 (81) 4.61 (85) IM U.S.Intermediate Duration(SA+CF)Median 1.20 1.38 0.45 3.50 5.01 5.08 Galliard TIPS 1.17 -0.31 -4.90 2.06 3.79 4.18 10/01/2007 BC U.S.Treasury Inflation Notes:1-10 Year 1.03 -0.28 -4.93 2.17 3.97 4.32 Templeton Global Bond Fund(TGBAX) 0.75 (95) 3.49 (29) 1.77 (32) N/A N/A 8.11 (5) 12/01/2011 Citigroup World Government Bond 2.66 (41) 1.55 (90) 1.37 (39) 1.91 (82) 3.84 (95) 0.45 (93) IM Global Fixed Income(MF)Median 2.43 2.78 0.82 3.36 6.34 3.65 American Core Realty Fund 3.20 (18) 5.88 (48) 13.16 (66) 12.42 (78) 5.81 (65) 1.75 (57) 10/01/2007 American Core Realty Policy 2.52 (47) 5.77 (53) 13.77 (52) 13.06 (66) 8.89 (13) 4.96 (3) IM U.S.Open End Private Real Estate(SA+CF)Median 2.45 5.83 13.80 14.02 7.73 2.04 Intercontinental 2.47 (50) 7.70 (9) 16.51 (21) 15.46 (26) N/A 15.78 (29) 10/01/2010 NCREIF Fund Index-ODCE(EW)(Net) 2.45 (50) 5.65 (64) 13.21 (66) 12.82 (68) 7.18 (56) 13.72 (72) IM U.S.Open End Private Real Estate(SA+CF)Median 2.45 5.83 13.80 14.02 7.73 14.71 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. Intercontinental Returns are preliminary 21 BOGDAHN �'-■ GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31,2014 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 . 9.66 (4) 15.72 (7) 18.95 (29) -1.17 (80) 10.67 (33) 0.70 (60) -16.84 (91) 13.03 (74) 7.89 (65) Total Fund Policy 7.90 (30) 15.06 (13) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.34 12.55 17.93 0.29 9.98 1.32 -13.67 14.39 8.65 Total Fund(New Mgrs)(Net) 9.66 (4) 15.72 (7) 18.95 (29) -1.17 (80) 10.66 (33) 0.68 (61) -16.82 (91) N/A N/A Total Fund Policy 7.90 (30) 15.06 (13) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.34 12.55 17.93 0.29 9.98 1.32 -13.67 14.39 8.65 Total Fund(Gro 85 (3) `33 (4) 19.81 (16) -0.45 (68) 11.40 (21) 1.43 (49) -16.48 (89) 13.92 (58) 8.62 (i. Total Fund Policy 7.90 (30) 15.06 (13) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.34 12.55 17.93 0.29 9.98 1.32 -13.67 14.39 8.65 Total Fund(New Mgrs)(Gross) 9.85 (3) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (21) 1.39 (50) -16.46 (89) N/A N/A Total Fund Policy 7.90 (30) 15.06 (13) 19.59 (20) 2.53 (13) 9.13 (74) 0.33 (64) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 7.34 12.55 17.93 0.29 9.98 1.32 -13.67 14.39 8.65 Total Equity Total Equity Policy 10.94 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 12.14 (66) 21.85 (33) 27.76 (62) -3.30 (89) 14.19 (8) -4.29 (37) -21.66 (63) 17.58 (43) 9.29 (67) Total Domestic Equity Policy 12.28 (63) 21.60 (36) 30.20 (45) 0.55 (57) 10.96 (31) -6.91 (64) -21.98 (67) 16.44 (60) 10.79 (48) IM U.S.Large Cap Core Equity(SA+CF)Median 12.75 20.61 29.78 1.13 9.46 -5.79 -20.48 16.98 10.76 Total International Equity 16.40 (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 6.56 (64) 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 7.36 22.63 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 Total Fixed Income 1.41 -0.59 6.34 9.27 10.= 0.64 4.91- 3.27 Total Fixed Policy 1.06 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 1.02 -1.30 5.88 4.67 9.27 10.53 0.64 4.96 3.27 Total Domestic Fixed Policy 1.06 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Global Fixed Income 3.48 (29) 3.53 (5) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy 1.55 (90) -4.60 (86) N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median 2.78 -1.45 7.39 1.53 7.80 13.96 -1.53 7.21 2.54 Total Real Estate 7.19 (14) 16.42 (17) 12.81 (54) 15.82 (79) 2.71 (76) -32.42 (36) 4.72 (39) NIA NIA NCREIF Fund Index-ODCE(EVV)(Net) 5.65 (64) 12.47 (68) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 3.18 (52) 18.21 (56) 17.46 (57) IM U.S.Open End Private Real Estate(SA+CF)Median 5.83 13.09 12.90 16.62 6.09 -35.27 3.47 18.53 18.17 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.Intercontiner 22 ( BOGDAHN ♦~� GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31,2014 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 (74) 11.93 (44) 0.53 (23) -15.13 (16) N/A N/A Russell 1000 Growth Index 11.67 (50) 19.27 (66) 29.19 (38) 3.78 (28) 12.65 (36) -1.85 (38) -20.88 (53) 19.35 (58) 6.04 (58) IM U.S.Large Cap Growth Equity(SA+CF)Median 11.64 20.44 27.57 1.21 11.31 -3.03 -20.41 20.41 6.81 RBC Global(Voyageur) 16.40 (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 6.56 (64) 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 7.36 22.63 15.01 -8.41 4.95 6.01 -27.38 23.91 20.92 Vanguard Total Stock Market(VITSX) 12.32 (33) N/A N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 12.33 (33) 21.60 (61) 30.28 (16) 0.71 (20) 11.16 (28) -6.03 (64) -21.19 (29) 16.98 (47) 10.38 (29) IM U.S.Multi-Cap Core Equity(MF)Median 11.41 23.19 25.43 -2.33 9.62 -4.54 -22.98 16.72 9.11 Galliard Core Fixed Income 1.38 (51) -0.64 (75) 5.82 (45) 4.16 (26) 9.63 (17) 12.08 (39) -1.68 (94) N/A N/A Barclays Intermediate Aggregate Index 1.06 (80) -0.71 (77) 4.31 (85) 4.22 (21) 7.52 (77) 9.69 (82) 4.16 (35) 5.33 (69) 3.84 (61) IM U.S.Intermediate Duration(SA+CF)Median 1.38 -0.24 5.57 3.58 8.27 11.46 3.26 5.49 3.92 Galliard TIPS -0.31 -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 -0.28 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Templeton Global Bond Fund(TGBAX) 3.49 (29) 3.54 (5) N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond 1.55 (90) -4.60 (86) 3.29 (97) 4.61 (8) 4.99 (94) 13.78 (52) 5.90 (6) 8.69 (30) 2.23 (64) IM Global Fixed Income(MF)Median 2.78 -1.45 7.39 1.53 7.80 13.96 -1.53 7.21 2.54 American Core Realty Fund 5.88 (48) 12.27 (71) 11.56 (70) 16.11 (78) 2.71 (76) -32.42 (36) 4.72 (39) N/A N/A American Core Realty Policy 5.77 (53) 13.04 (51) 11.61 (67) 18.27 (41) 5.84 (52) -22.09 (5) 5.27 (28) N/A N/A IM U.S.Open End Private Real Estate(SA+CF)Median 5.83 13.09 12.90 16.62 6.09 -35.27 3.47 18.53 18.17 Intercontinental 7.70 (9) 18.21 (10) 13.38 (43) 15.68 (80) N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE(EW)(Net) 5.65 (64) 12.47 (68) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 3.18 (52) 18.21 (56) 17.46 (57) IM U.S.Open End Private Real Estate(SA+CF)Median 5.83 13.09 12.90 16.62 6.09 -35.27 3.47 18.53 18.17 Returns for periods greater than one year are annualized.Returns are expressed as percentages. a 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.Intercontiner 23 r BOGDAHN \~' GROUP. Performance Review Total Fund(Gross) As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Fund(Gross) 34,568 - 602 -491 -15 -26 135 601 35,374 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Fund(Gross) 31,811 - 1,496 -986 -59 -36 292 2,856 35,374 Peer Group Analysis-All Public Plans-Total Fund II . Cummulative Performance 20.00 $300.00 - • • • $250.00 ■ 14.00 $223.58 • v MI • • $200.00 "/03.18 c • 8.00 • rc $150.00 2.00 •mem N. $100.00 - -4.00 I I I I 1 1 $50.00 ■ QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR •Total Fund(Gross) 2.13 (24) 9.85 (3) 16.92 (3) 14.48 (2) 11.04 (4) 11.94 (4) 16.18 (9) $0.00 •Total Fund Policy 1.69 (55) 7.90 (30) 14.82 (15) 12.97 (11) 10.86 (5) 11.58 (6) 15.12 (25) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/12 3/14 Median 1.74 7.34 12.79 11.30 8.96 10.06 14.09 - Total Fund(Gross) - Total Fund Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total Fund(Gross) 7.55 (3) 5.10 (43) 1.27 (4) 7.28 (4) 1.88 (43) 6.06 (2) Total Fund Policy 6.10 (31) 5.46 (26) 0.91 (12) 6.60 (12) 1.42 (62) 4.82 (46) All Public Plans-Total Fund Median 5.60 4.91 0.09 5.47 1.72 4.77 24 (CTHE )4,BOGDAHN GROUP. Performance Review Total Fund(Gross) As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years Over = o.00 e e 6 0 0 20.0 Performance • 6 25.00 8 e 2 10.0 f.„,,,,,,- 0 0 0 0 ° o 2. 50.00 ° 0 0 • 0.0 a 00 ° 00 _ + 75.00 0 0 0 0 0 0 e-10.0 Under 5 Performance re 100.00 I I I 1 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 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 10 (50%) 2 (10%) 7 (35%) 1 (5%) Earliest Date X Latest Date if Total Fund Policy 20 7 (35%) 10 (50%) 3 (15%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 11.56 16.56 ^,10.88 O • ^,15.87 ■ • 10.20 15.1e - 0 9.52 14.49 ■ rc rc 8.84 13.80 - 8.16 I I I I I 13.11 I I I 8.84 9.18 9.52 9.86 10.20 10.54 10.88 11.22 11.56 9.72 9.99 10.26 10.53 10.80 11.07 11.34 11.61 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 11.04 11.11 •Total Fund(Gross) 16.18 11.37 • Total Fund Policy 10.86 9.48 •Total Fund Policy 15.12 10.17 Median 8.96 9.43 Median 14.09 10.23 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 2.13 110.19 130.44 -1.41 0.16 1.01 1.16 6.92 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.14 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) 1.94 109.04 116.53 -0.51 0.55 1.39 1.11 6.03 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.45 1.00 5.23 THE 25 (� , BOG DAHN ♦j GROUP. Performance Review Total Domestic Equity As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Domestic Equity 19,042 -3,385 - - - - 70 277 16,004 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Domestic Equity 16,833 -2,881 - - - - 165 1,887 16,004 Peer Group Analysis-IM U.S.Large Cap Core Equity(SA+CF) iMIIM Cumulative Performance 40.00 $250.00 - $215.47 30.00 - $200.00 - 187.05 20.00 - $150.00 rc MI Mil 10.00 - $100.00 0.00 $50.00 ■ -10.00 I I I I I I $0.00 1 1 1 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/12 3/14 •Total Domestic Equity 1.85 (63) 12.14 (66) 22.49 (58) 17.45 (65) 13.17 (77) 14.41 (67) 21.35 (44) •Total Domestic Equity Policy 1.97 (59) 12.28 (63) 22.61 (55) 18.52 (45) 14.61 (57) 15.31 (48) 21.59 (40) - Total Domestic Equity Median 2.12 12.74 22.89 18.29 14.82 15.24 21.04 - Total Domestic Equity Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total Domestic Equity 10.11 (63) 6.29 (41) 2.77 (50) 11.15 (36) 0.36 (37) 7.22 (21) Total Domestic Equity Policy 10.10 (63) 6.35 (38) 2.69 (52) 11.07 (38) 0.25 (40) 6.23 (56) IM U.S.Large Cap Core Equity(SA+CF)Median 10.47 5.99 2.75 10.68 0.00 6.41 THE 26 ( , BOG DAHN ♦~� GROUP. Performance Review Total Domestic Equity As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 44.0 over 0.00 0 x 33.0 Performance rc w 25.00 0 0 E p 0 0 0 0 0 0 8 0 0 0 0 0 0 " ,,.o % 50.00 DO 0000000 0000 00 E • c O 0.0 75.00 0 0 O 0 • • m •1�- Under w F-11.0 Performance re 100.00 I I - I 1 -10.0 0.0 10.0 20.0 30.0 40.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 Total Domestic Equity Policy(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count •Total Domestic Equity 20 2(10%) 9(45%) 7(35%) 2(10%) Earliest Date X Latest Date if Total Domestic Equity Policy 20 0(0%) 9(45%) 11(55%) 0(0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.12 21.80 ^,14.58 O ^,21.60 0 e e • 14.04 . 21.40 • fi 13.50 fi 21.20 Kt 12.96 • Kt 21.00 12.42 I I I I 20.80 I I I I 14.88 15.19 15.50 15.81 16.12 16.43 16.74 17.05 16.00 16.20 16.40 16.60 16.80 17.00 17.20 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 13.17 16.60 •Total Domestic Equity 21.35 17.02 • Total Domestic Equity Policy 14.61 15.28 •Total Domestic Equity Policy 21.59 16.15 Median 14.82 15.26 Median 21.04 16.18 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.41 101.99 113.64 -2.63 -0.44 0.93 1.11 8.57 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.13 1.00 7.46 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.97 101.94 105.52 -1.47 -0.01 1.32 1.07 8.27 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.44 1.00 7.80 THE 27 (� , BOG DAHN ♦j GROUP. Performance Review Vanguard Total Stock Market(VITSX) As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Vanguard Total Stock Market(VITSX) 19,042 -3,385 - - - - 70 277 16,004 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Vanguard Total Stock Market(VITSX) 16,833 -2,881 - - - - 165 1,887 16,004 Peer Group Analysis-IM U.S.Multi-Cap Core Equity(MF) Cumulative Performance 40.00 $132.00 $126.00 30.00 $122.89 0 $120.00 20.00 • ME • • $114.00 • re M. ••••• •••./..*°°' 10.00 $108.00 • 0.00 AMU $102.00 • I I I I I -10.00 $96.00 I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/13 6/13 9/13 12/13 3/14 •Vanguard Total Stock Market(VITSX) 2.04 (42) 12.32 (33) 22.69 (45) N/A N/A N/A N/A •Vanguard Total Stock Market Index Hybrid 2.04 (42) 12.33 (33) 22.75 (44) 18.55 (39) 14.69 (25) 15.42 (22) 22.10 (25) -Vanguard Total Stock Market(VITSX) Median 1.77 11.41 22.31 17.67 12.93 13.73 20.44 -Vanguard Total Stock Market Index Hybrid Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Vanguard Total Stock Market(VITSX) 10.08 (31) 6.29 (65) 2.77 (44) N/A N/A N/A Vanguard Total Stock Market Index Hybrid 10.09 (30) 6.29 (65) 2.81 (43) 11.06 (47) 0.19 (78) 6.24 (33) IM U.S.Multi-Cap Core Equity(MF)Median 9.45 6.85 2.57 11.01 1.51 5.68 28 /0THE 4,BOGDAHN GROUP. Page Intentionally Left Blank 29 el BOGDAHN N.,---' GROUP. Performance Review Total International Equity As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total International Equity 5,491 13 - - -13 -1 40 188 5,718 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total International Equity 4,914 24 - - -24 -2 58 748 5,718 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) MI Cumulative Performance 40.00 $300.00 30.00 - $250.00 • $239.69 • • • $200.00 • .190.19 20.00 - ■ • rc WI $150.00 • J ■ 0.00 / $100.00 1 0.00 \ "` $50.00 ■ -10.00 I I I I I I _ QTR FYTD 1YR 2YR 3YR 4YR 5YR •Total International Equity 4.15 (6) 16.40 (1) 27.61 (7) 24.60 (2) 13.68 (4) 15.33 (2) 25.85 (2) $o.00 • MSCI EAFE Index 0.77 (62) 6.56 (64) 18.06 (58) 14.89 (45) 7.72 (49) 8.50 (56) 16.56 (51) 12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/12 3/14 Median 1.14 7.36 19.60 14.27 7.47 8.88 16.62 - Total International Equity - MSCI EAFE Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total International Equity 11.77 (1) 8.88 (78) 0.69 (34) 8.79 (2) 6.93 (34) 11.28 (2) MSCI EAFE Index 5.75 (58) 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) IM International Large Cap Value Equity(SA+CF)Median 6.12 10.79 0.03 4.19 6.26 7.27 THE 30 lBOG ✓ GROUP. Performance Review Total International Equity As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years - 40.0 Over 0.00 0 0 0 0 0 0 • • • • Performance 0 w O 25.00 0 zo.o . 50.00 0 0000 0.0 m a O 0 000000 + E 75.00 00 000 0000 -20.0 Under v 0 0 0 0 Performance re 0 I 100.00 I -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 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 11 (55%) 2 (10%) 2 (10%) 5 (25%) Earliest Date X Latest Date • MSCI EAFE Index 20 0 (0%) 4 (20%) 15 (75%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.00 28.00 • • e-24.00 - E 12.00 E 20.00 - rc• 9.00 11 • 0 16.00 ■ 6.00 12.00 I I I I I I I 15.40 16.17 16.94 17.71 18.48 19.25 20.02 18.60 19.53 20.46 21.39 22.32 23.25 24.18 25.11 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 13.68 19.30 •Total International Equity 25.85 23.78 • MSCI EAFE Index 7.72 16.03 • MSCI EAFE Index 16.56 20.08 Median 7.47 16.23 Median 16.62 19.86 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 5.46 119.58 98.61 5.54 1.04 0.81 1.03 11.44 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.53 1.00 11.21 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 6.44 120.29 92.82 7.06 1.28 1.21 1.08 10.93 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.93 1.00 10.67 THE 31 (: 9 BOGDAHN ♦~� GROUP. Performance Review RBC Global(Voyageur) As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 RBC Global(Voyageur) 5,491 13 - - -13 -1 40 188 5,718 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 RBC Global(Voyageur) 4,914 24 - - -24 -2 58 748 5,718 ACumulative Performance 40.00 $175.00 - $150.00 - 30.00 - $142.08 • • • $125.00 - 20.00 - o ■ • $105.53 T, \ 7 $100.00 - 10.00 - Mb $75.00 - 0.00 $50.00 ■ \\\v/ -10.00 I I I I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global(Voyageur) 4.15 (6) 16.40 (1) 27.61 (7) 24.60 (2) 13.68 (4) 15.33 (2) 25.85 (2) $25.00 I I I I I I I I I • MSCI EAFE Index 0.77 (62) 6.56 (64) 18.06 (58) 14.89 (45) 7.72 (49) 8.50 (56) 16.56 (51) 12/07 sloe sios 3/10 12/10 9/11 6/12 3/13 3/14 Median 1.14 7.36 19.60 14.27 7.47 8.88 16.62 - RBC Global(Voyageur) - MSCI EAFE Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 RBC Global(Voyageur) 11.77 (1) 8.88 (78) 0.69 (34) 8.79 (2) 6.93 (34) 11.28 (2) MSCI EAFE Index 5.75 (58) 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) IM International Large Cap Value Equity(SA+CF)Median 6.12 10.79 0.03 4.19 6.26 7.27 THE 32 ( , BOG DAHN ♦~� GROUP. Performance Review RBC Global(Voyageur) As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 40.0 over 0.00 000000 • * GG Performance rc 30.0 0 O _ 25.00 0 0 20.0 O O O O 0 o O 0 50.00 a 0000 O O O O O O X• 10.0 0 E 75.00 00 0 0000 • o.o m Under 100.00 rc-10D ■ Performance 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 1 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Total Period 5-25 25-Median Median-75 75-95 MSCI EAFE Index(%) Count Count Count Count • RBC Global(Voyageur) 14 11 (79%) 2 (14%) 1 (7%) 0 (0%) • Over Performance 4. Earliest Date X Latest Date if MSCI EAFE Index 20 0 (0%) 4 (20%) 15 (75%) 1 (5%) Peer Group Scattergram-3 Years . Peer Group Scattergram-5 Years 15.00 28.00 • • -24.00 - e.12.00 e E 20.00 - rc 9.00 T, 0 16.00 ■ • 6.00 I I I I 12.00 I I I I I I 15.40 16.17 16.94 17.71 18.48 19.25 20.02 18.60 19.53 20.46 21.39 22.32 23.25 24.18 25.11 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 13.68 19.30 • RBC Global(Voyageur) 25.85 23.78 • MSCI EAFE Index 7.72 16.03 • MSCI EAFE Index 16.56 20.08 Median 7.47 16.23 Median 16.62 19.86 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 5.46 119.58 98.61 5.54 1.04 0.81 1.03 11.44 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.53 1.00 11.21 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 6.44 120.29 92.82 7.06 1.28 1.21 1.08 10.93 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.93 1.00 10.67 THE 33 ("04,BOGDAHN GROUP. Performance Review Total Domestic Fixed Income Composite As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Domestic Fixed Income Composite 5,632 - - - - - 3 74 5,709 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Domestic Fixed Income Composite 5,652 - - - - - 6 52 5,709 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 11.00 6250.00 - 8.00 6200.00 - $169.99 • 5.00 6150.00 - rc 2.00 -1.00 liM 6100.00 - -4.00 I t I t I I $50.00 t t t t r r t r t 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 12/12 3/14 •Total Domestic Fixed Income Composite 1.37 (32) 1.02 (82) -1.07 (98) 1.64 (82) 3.28 (66) 3.89 (51) 5.64 (32) •Total Domestic Fixed Policy 1.20 (49) 1.06 (80) 0.01 (78) 1.51 (86) 3.04 (81) 3.47 (80) 4.24 (81) - Total Domestic Fixed Income Composite Median 1.20 1.38 0.45 2.12 3.50 3.90 5.01 - Total Domestic Fixed Policy Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total Domestic Fixed Income Composite -0.34 (97) 0.66 (66) -2.72 (100) 0.30 (62) 0.49 (38) 1.79 (47) Total Domestic Fixed Policy -0.14 (92) 0.76 (41) -1.78 (53) 0.15 (91) 0.18 (85) 1.36 (86) IM U.S.Intermediate Duration(SA+CF)Median 0.20 0.72 -1.75 0.34 0.40 1.74 THE 34 ( , BOG DAHN ♦~� GROUP. Performance Review Total Domestic Fixed Income Composite As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years E 10.0 = 0.00 Over O U Performance O O O O O 0 O rc 25.00 80 0 O O 5 6.0 0 • • w 50.00 0 O O 0 0 R � a.o E 75.00 0008 ° 00000 O •• Under v O p p 0 0 0 O illi 2.0 Performance re I 100.00 I I 1 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 Total Domestic Fixed Policy(%) Total 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Period Count Count Count Count •Total Domestic Fixed Income Composite 20 6(30%) 3(15%) 5(25%) 6(30%) • Earliest Date X Latest Date •Total Domestic Fixed Policy 20 0(0%) 1(5%) 13(65%) 6(30%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.60 6.37 ^3.40 - ^,5.88 E • ee`. • 5.39 g 3.20 fi 4.90 rc 3.00 ■ • 4.41 • 2.80 I I I I 3.92 I I I I 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 2.21 2.38 2.55 2.72 2.89 3.06 3.23 3.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 3.28 2.60 •Total Domestic Fixed Income Composite 5.64 3.23 • Total Domestic Fixed Policy 3.04 2.10 •Total Domestic Fixed Policy 4.24 2.38 Median 3.50 2.09 Median 5.01 2.72 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 0.80 110.94 116.24 -0.12 0.31 1.30 1.12 1.44 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.42 1.00 1.11 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 1.07 124.95 104.78 0.81 1.26 1.99 1.13 1.36 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.16 THE 35 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard Core Fixed Income As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Galliard Core Fixed Income 4,464 - - - - - - 64 4,528 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Galliard Core Fixed Income 4,466 - - - - - - 62 4,528 Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 11.00 $150.00 $140.00 - 8.00 $134.03 • $130.00 - 5.00 -1,1, El= 0 $120.00 2.00 i $„0.00 ■ -,.00 $,00.00 - -4.00 r t r t t r $90.00 r t t r t r t r t r QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 B/„ 3/12 12/12 3/14 •Galliard Core Fixed Income 1.43 (29) 1.38 (51) -0.02 (80) 2.19 (48) 3.61 (47) 4.06 (42) 6.06 (22) • Barclays Intermediate Aggregate Index 1.20 (49) 1.06 (80) 0.01 (78) 1.51 (86) 3.04 (81) 3.47 (80) 4.24 (81) - Galliard Core Fixed Income Median 1.20 1.38 0.45 2.12 3.50 3.90 5.01 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Galliard Core Fixed Income -0.05 (82) 0.58 (79) -1.95 (76) 0.28 (65) 0.46 (40) 1.80 (46) Barclays Intermediate Aggregate Index -0.14 (92) 0.76 (41) -1.78 (53) 0.15 (91) 0.18 (85) 1.36 (86) IM U.S.Intermediate Duration(SA+CF)Median 0.20 0.72 -1.75 0.34 0.40 1.74 THE 36 ( , BOG DAHN ♦~� GROUP. Performance Review Galliard Core Fixed Income As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years w 12.0 0.00 Over O 10.0 Performance f p p p p 25.00 O 8.0 = O O O•LL 6.0 0 2 50.00 0 • O O O c O p O . a.o- •f= E 75.00 O p 80p0 v O000 111110 � 2.0- Under O Performance re 0.0 I I I I 1 I 1 1 1 100.00 I I 1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 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 15 6(40%) 7(47%) 0(0%) 2(13%) • Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0(0%) 1(5%) 13(65%) 6(30%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.80 6.82 _3.60 • ^,620 • 6 6 3.40 .5.58 fi 3.20 fi 4.96 Kt O Kt • 3.00 4.34 2.80 I I I I I 3.72 I I I 2.04 2.07 2.10 2.13 2.16 2.19 2.22 2.25 2.28 2.09 2.28 2.47 2.66 2.85 3.04 3.23 3.42 3.61 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 3.61 2.22 •Galliard Core Fixed Income 6.06 3.37 • Barclays Intermediate Aggregate Index 3.04 2.10 • Barclays Intermediate Aggregate Index 4.24 2.38 Median 3.50 2.09 Median 5.01 2.72 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.52 107.69 87.08 0.57 1.06 1.64 0.99 1.15 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.42 1.00 1.11 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 1.11 127.04 86.13 1.41 1.58 2.19 1.08 1.17 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.16 s7 (CTHE )4,BOGDAHN GROUP. Performance Review Galliard TIPS As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Galliard TIPS 1,168 - - - - - 3 10 1,182 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Galliard TIPS 1,186 - - - - - 6 -9 1,182 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance 12.00 $150.00 8.00 - $135.00 4.00 - $lb:�5 III M E MOW 0.00 - T, -II-0- * $120.00 -4.00 - ■ $105.00 ■ -8.00 ■ -12.00 I t t I I I $90.00 I I t I I I I I I 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 3/14 •Galliard TIPS 1.17 (82) -0.31 (85) -4.90 (17) -0.39 (39) 2.06 (97) 3.13 (95) 3.79(100) • BC U.S.Treasury Inflation Notes:1-10 Year 1.03 (94) -0.28 (83) -4.93 (18) -0.61 (68) 2.17 (95) 3.30 (93) 3.97(95) - Galliard TIPS Median 1.96 -0.10 -6.35 -0.51 3.58 4.64 5.03 - BC U.S.Treasury Inflation Notes:1-10 Year Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Galliard TIPS -1.46 0.97 -5.53 0.35 0.59 1.74 BC U.S.Treasury Inflation Notes:1-10 Year -1.30 0.92 -5.52 0.33 0.46 1.71 THE 38 (: ) BOGDAHN ♦~� GROUP. Performance Review Galliard TIPS As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 10.0 Over 0.00 Performance rc • 8.0 _ 25.00 • 0 o- 6.0 50.00 F w O a O 0 0 2 4.0 E 75.00 Tc 11 I ® 00600000008800 2.0 i. Under 100.00 Performance 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 0.0 I I I I 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.o 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 15 0(0%) 0(0%) 0(0%) 15(100°r • Under Performance 4. Earliest Date X Latest Date • BC U.S.Treasury Inflation Notes:1-10 Year 20 0(0%) 0(0%) 4(20%; 16(80%; roue Scattergram-3 Years Peer Group Scattergram-5 Years 4.00 - 5.33 ^-3.50 ■ ^-4.92 �\.oi 6 .3.00 - .4.51 fi 2.50 ■ fi 4.10 Kt • Kt- 3.69 1.50 I I I I I 3.28 I I I I 3.74 4.08 4.42 4.76 5.10 5.44 5.78 6.12 6.46 3.36 3.64 3.92 4.20 4.48 4.76 5.04 5.32 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 2.06 4.14 •Galliard TIPS 3.79 3.59 • BC U.S.Treasury Inflation Notes:1-10 Year 2.17 4.16 • BC U.S.Treasury Inflation Notes:1-10 Year 3.97 3.60 Median 3.58 5.94 Median 5.03 5.08 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.03 98.29 99.79 -0.13 -0.09 0.51 1.01 2.63 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 0.56 1.00 2.62 Historical Statistics-5 Y Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.04 96.41 97.37 -0.12 -0.17 0.99 0.99 2.27 BC U.S.Treasury Inflation Notes:1-10 Year 0.00 100.00 100.00 0.00 N/A 1.06 1.00 2.22 THE 39 ç2,B OG DAHN GROUP. Performance Review Total Global Fixed Income Composite As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Global Fixed Income Composite 1,338 -3 - - - - 13 -3 1,345 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Global Fixed Income Composite 986 319 - - - - 27 12 1,345 Peer Group Analysis-IM Global Fixed Income(MF) IIME Cumulative Performance 20.00 $128.00 15.00 - $120.00 - $119.83 10.00 - c $112.00 E 5.00 se • • AI $104.00 ■ 0.00 $100.19 -5.00 ■ $96.00 ■ I -10.00 t I I t I $88.00 I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/11 6/12 12/12 6/13 12/13 3/14 •Total Global Fixed Income Composite 0.74 (96) 3.48 (29) 1.75 (33) 5.73 (8) N/A N/A N/A •Total Global Fixed Income Policy 2.66 (41) 1.55 (90) 1.37 (39) 0.35 (89) N/A N/A N/A - Total Global Fixed Income Composite - Median 2.43 2.78 0.82 2.70 3.36 4.02 6.34 Total Global Fixed Income Policy Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total Global Fixed Income Composite 2.72 (2) 1.09 (49) -2.72 (32) 1.42 (7) 3.81 (2) 5.40 (11) Total Global Fixed Income Policy -1.09 (91) 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (73) IM Global Fixed Income(MF)Median 0.71 0.99 -3.27 -0.45 1.12 3.43 THE (C)4,BOGDAHN 40 GROUP. Performance Review Templeton Global Bond Fund(TGBAX) As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Templeton Global Bond Fund(TGBAX) 1,338 -3 - - - - 13 -3 1,345 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Templeton Global Bond Fund(TGBAX) 986 319 - - - - 27 12 1,345 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 20.00 $128.00 15.00 - $120.00 - $119.86 10.00 - $112.00 - 5.00 - • rc •O • mil MIN •• li $104.00 - o.00 - $100.18 -5.00 ■ $96.00 ■ -10.00 I I I I I I $88.00 t t t QTR FYTD 1 YR 2YR 3YR 4YR 5YR 12/11 6/12 12/12 6/13 12/13 3/14 •Templeton Global Bond Fund(TGBAX) 0.75 (95) 3.49 (29) 1.77 (32) 5.75 (8) N/A N/A N/A •Citigroup VVorld Government Bond 2.66 (41) 1.55 (90) 1.37 (39) 0.35 (89) 1.91 (82) 3.23 (74) 3.84 (95) - Templeton Global Bond Fund(TGBAX) Median 2.43 2.78 0.82 2.70 3.36 4.02 6.34 - Citigroup World Government Bond Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Templeton Global Bond Fund(TGBAX) 2.72 (2) 1.09 (49) -2.72 (32) 1.42 (7) 3.83 (2) 5.40 (11) Citigroup VVorld Government Bond -1.09 (91) 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (73) IM Global Fixed Income(MF)Median 0.71 0.99 -3.27 -0.45 1.12 3.43 41 (CTHE )4,BOGDAHN GROUP. Performance Review Total Real Estate As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Real Estate 2,798 -9 - - -2 - 9 65 2,861 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Total Real Estate 2,717 -19 - - -32 - 36 157 2,861 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance a 26.00 $135.00 - I $120.00 • $118.51 20.00 112.90 • $105.00 4.00 - • $90.00 rc 8.00 - • $75.00 ■ 2.00 $60.00 - -4.00 I I I 1 1 I $45.00 1 1 1 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 6/08 3/09 12/09 9/10 6/11 3/12 12/12 3/14 •Total Real Estate 2.67 (34) 7.19 (14) 15.55 (32) 14.73 (33) 14.56 (36) 15.18 (42) 7.03 (57) • NCREIF Fund Index-ODCE(VV) 2.52 (47) 5.77 (53) 13.77 (52) 12.27 (65) 13.06 (66) 14.79 (50) 7.32 (55) - Total Real Estate Median 2.45 5.83 13.80 13.47 14.02 14.75 7.73 - NCREIF Fund Index-ODCE(VW) Comparative Performan 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Total Real Estate 4.40 (11) 3.59 (50) 4.06 (47) 2.70 (61) 5.16 (8) 2.73 (61) NCREIF Fund Index-ODCE(VV) 3.17 (54) 3.56 (51) 3.86 (52) 2.68 (61) 2.35 (60) 2.77 (55) IM U.S.Open End Private Real Estate(SA+CF)Median 3.23 3.58 3.88 3.14 2.51 2.80 THE 42 ( , BOG DAHN \~� GROUP. Performance Review Total Real Estate As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 30.0 0.00 Over 20.0 Performance rc 25.00 p 0 10.0 • - 2 50.00 0 0 0 0 0 8 e 0 0 8 0 0 0 o O e o O ° 0.0 ii. ° a - 75.00 0 0 0 -10.0 + Under T, 0 T, Performance re -20.0 I I I I 100.00 1 I 1 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 6/09 12/09 6/10 12/10 6/11 ,2/11 6/12 12/12 6/13 3/14 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 15 0 (0%) 7(47%) 7(47%) 1 (7%) Earliest Date X Latest Date • NCREIF Fund Index-ODCE(VW) 20 0 (0%) 13(65%) 7(35%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 15.37 8.10 - 14.84 ems`. • 7.80 7.50- • 14.31 :::: - fi 13.78 • Kt 13.25 •• 7.20- • 12.72 I I I I I 1.00 1.20 1.40 1.60 1.80 2.00 7.20 7.50 7.80 8.10 8.40 8.70 9.00 9.30 9.60 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Real Estate 14.56 1.53 •Total Real Estate 7.03 7.93 • NCREIF Fund Index-ODCE(VW) 13.06 1.27 • NCREIF Fund Index-ODCE(VW) 7.32 7.61 Median 14.02 1.84 Median 7.73 9.19 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 1.85 110.95 N/A 12.37 0.74 9.05 0.16 0.00 NCREIF Fund Index-ODCE(VW) 0.00 100.00 N/A 0.00 N/A 9.79 1.00 0.00 Historical Statistics-5 Years = 1 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 2.29 99.99 106.13 -0.23 -0.11 0.89 1.00 5.70 NCREIF Fund Index-ODCE(VW) 0.00 100.00 100.00 0.00 N/A 0.96 1.00 5.43 lioN THE 43 (: 9 BOGDAHN ♦~� GROUP. Performance Review American Core Realty Fund As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 American Core Realty Fund 786 -9 - - -2 - 9 15 799 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 American Core Realty Fund 777 -19 - - -4 - 19 26 799 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.00 $160.00 $140.00 20.00 - $130.79 $120.00 = • d 14.00 - $111.92 $100.00 et ■ 8.00 - I - $80.00 i 2.00 ■ I $60.00 - -4.00 I I t t t I $40.00 • t t t 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 3/14 •American Core Realty Fund 3.20 (18) 5.88 (48) 13.16 (66) 11.91 (67) 12.42 (78) 13.55 (81) 5.81 (65) • NCREIF Property Index 2.74 (26) 5.34 (71) 11.18 (87) 10.85 (84) 11.69 (82) 12.76 (93) 7.89 (48) -American Core Realty Fund Median 2.45 5.83 13.80 13.47 14.02 14.75 7.73 - NCREIF Property Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 American Core Realty Fund 2.59 (78) 3.40 (55) 3.36 (66) 2.49 (69) 2.50 (52) 2.58 (70) NCREIF Property Index 2.53 (82) 2.59 (91) 2.87 (76) 2.57 (64) 2.54 (48) 2.34 (85) IM U.S.Open End Private Real Estate(SA+CF)Median 3.23 3.58 3.88 3.14 2.51 2.80 44 (CTHE ),„,BOGDAHN GROUP. Performance Review American Core Realty Fund As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years c20.0 Over 0.00 00000000000 Performance A•el! rc • 10.0 i 25.00 0 0 0 0 0 0 rc • 0.00 0 0 0.0 u 5 • c 0 ■u-10.0 #. E 75.00 0 e v Under i i ile 08808g Performance re .-20.0 100.00 I T -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 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 15 0(0%) 5(33%) 3(20%) 7(47%) Earliest Date X Latest Date if NCREIF Property Index 20 12(60%) 1(5%) 1(5%) 6(30%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 14.63 8.28 - _^,13.86 ■ ^,7.59■ • 6 6 • 13.09 - .6.90- fi 1232 ■ • fi 621 ■ K t rc J 11.55 _ 5.52_ • I I I I 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 4.00 4.80 5.60 6.40 7.20 8.00 8.80 9.60 10.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation •American Core Realty Fund 12.42 0.82 •American Core Realty Fund 5.81 7.63 • NCREIF Property Index 11.69 0.83 • NCREIF Property Index 7.89 4.94 Median 14.02 1.84 Median 7.73 9.19 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 0.60 105.96 N/A 3.75 1.11 14.37 0.73 0.00 NCREIF Property Index 0.00 100.00 N/A 0.00 N/A 13.44 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 3.17 102.89 198.13 -5.47 -0.57 0.77 1.49 5.70 NCREIF Property Index 0.00 100.00 100.00 0.00 N/A 1.55 1.00 2.91 THE 45 cBOGDAHN ♦~� GROUP. Page Intentionally Left Blank 46 Performance Review Intercontinental As of March 31,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Intercontinental 2,012 - - - - - - 50 2,062 Financial Reconciliation October 1,2013 To March 31,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2014 Intercontinental 1,940 - - - -27 - 18 131 2,062 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.00 $200.00 $180.00 20.00 - $166.99 • • • $160.00 $157.92 = 14.00 - M MIE $140.00 rc 8.00 - • 6 $120.00 2.00 ■ =IIMIIM $100.00 - I -4.00 I t t t I $80.00 t t t QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 • Intercontinental 2.47 (50) 7.70 (9) 16.51 (21) 15.91 (15) 15.46 (26) N/A N/A • NCREIF Fund Index-ODCE(VV) 2.52 (47) 5.77 (53) 13.77 (52) 12.27 (65) 13.06 (66) 14.79 (50) 7.32 (55) - Intercontinental Median 2.45 5.83 13.80 13.47 14.02 14.75 7.73 - NCREIF Fund Index-DOGE(VW) Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Intercontinental 5.10 (4) 3.66 (44) 4.35 (29) 2.79 (59) 6.32 (6) 2.80 (51) NCREIF Fund Index-ODCE(VV) 3.17 (54) 3.56 (51) 3.86 (52) 2.68 (61) 2.35 (60) 2.77 (55) IM U.S.Open End Private Real Estate(SA+CF)Median 3.23 3.58 3.88 3.14 2.51 2.80 47 (CTHE ),„BOGDAHN GROUP. Manager Performance Reviews THE 48 l� BOGDAHN GROUP Page Intentionally Left Blank 49 el BOGDAHN N.,---' GROUP. Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of March 31,2014 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 YPC d 50.0 75.0— 100.0 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 3/14 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%) 21 (55%) 17 (45%) Manager composite returns used for chart population. THE BOGDAHN 50 l✓ GROUP. Relative Performance International Equity Since Inception Ending March 31,2014 Relative Performance 18.0 15.0 12.0 9.0 6.0 ii 3.0 I i' ' .0.0-I II i• I• I I. I� I.I .I' , ICI �I I 1 I II I r I I I II 111 I 1 I ' I 12 -3.0– II I 1111 -6.0- -9.0- -12.0– -15.0– r -18.0– 21.0 1 r r r r i i i r i i i i r r r r i i i i 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 7/13 3/14 — Cumulative Annualized Over/Under Relative Performance . Over/Under Performance Calculation based on monthly periodicity. THE 51 (l , BOGDAHN ♦~� GROUP. Performance Review RBC Global Asset Management As of March 31,2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To March 31,2014 No data found. Peer Gro'rnational Large Cap Value Equity(SA+CF) Cumulative Performance 40.00 $750.00 - $600.00 - 30.00 - • • $520.75 • $450.00 - 20.00 - re • ■ al • • $300.00 - MIEMi. $215.96 $150.00 0.00 ■ r� - $0.00 ■ -10.00 I t t t t t QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • International Equity 4.13 (6) 16.35 (1) 27.53 (8) 24.51 (2) 13.59 (5) 15.56 (2) 26.03 (1) ($150.00) 1 • MSCI EAFE Index 0.77 (62) 6.56 (64) 18.06 (58) 14.89 (45) 7.72 (49) 8.50 (56) 16.56 (51) 6/98 3/00 12/01 9/03 6/05 3/07 12/08 9/10 6/12 3/14 -Median 1.14 7.36 19.60 14.27 7.47 8.88 16.62 International Equity MSCI EAFE Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 International Equity 11.73 (1) 8.88 (78) 0.67 (34) 8.77 (2) 6.92 (34) 11.25 (2) MSCI EAFE Index 5.75 (58) 11.61 (36) -0.73 (61) 5.23 (33) 6.60 (42) 6.98 (57) IM International Large Cap Value Equity(SA+CF)Median 6.12 10.79 0.03 4.19 6.26 7.27 52 (CTILE )4,BOGDAHN GROUP. Performance Review RBC Global Asset Management As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 0.00 iz 40.0 Over a 000 . 0 • oG a Performance 0 0 25.00 O 20.0 _ W 50.00 0 0000 0 0.0 0 • a O 00000 ° E75.00 00 ° 680000 w-20.0 Under 1 0 0 0 0 i Performance 100.00 1 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • International Equity 20 12 (60%) 1 (5%) 2 (10%) 5 (25%) Earliest Date X Latest Date • MSCI EAFE Index 20 0 (0%) 4 (20%) 15 (75%) 1 (5%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 16.00 28.00 ^,14.00 e • e%24.00 - • • 12.00 E 20.00 - 10.00 Kt 8.00 O Kt 16.00 ■ • 6.00 I I I I 12.00 I I I I 15.40 16.17 16.94 17.71 18.48 19.25 20.02 18.60 19.53 20.46 21.39 22.32 23.25 24.18 25.11 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 13.59 19.30 • International Equity 26.03 23.76 • MSCI EAFE Index 7.72 16.03 • MSCI EAFE Index 16.56 20.08 Median 7.47 16.23 Median 16.62 19.86 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 5.46 119.42 98.78 5.47 1.02 0.80 1.03 11.45 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.53 1.00 11.21 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 6.30 120.87 93.17 7.18 1.33 1.22 1.08 10.98 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.93 1.00 10.67 ILE 53 ( , TBOGDAHN ♦~� GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of March 31,2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To March 31,2014 No data found. Peer Group Analysis-IM U.S.Intermediate Duration(SA+CF) Cumulative Performance 11.00 $400.00 8.00 $300.00 $283.07 9.30 5.00 E Ill re El= IIM $200.00 2.00 IM $100.00 -1.00 -4.00 I I I I I $0.00 1 1 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/95 12/97 3/00 6/02 9/04 12/06 3/09 8/11 3/14 • Intermediate Core 1.33 (36) 1.27 (63) -0.32 (90) 1.96 (63) 3.64 (45) 3.91 (48) 4.90 (55) • Barclays Intermediate Aggregate Index 1.20 (49) 1.06 (80) 0.01 (78) 1.51 (86) 3.04 (81) 3.47 (80) 4.24 (81) - Intermediate Core Median 1.20 1.38 0.45 2.12 3.50 3.90 5.01 - Barclays Intermediate Aggregate Index Comparative Performance 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Intermediate Core -0.06 (85) 0.67 (61) -2.23 (91) 0.21 (84) 0.42 (46) 1.88 (40) Barclays Intermediate Aggregate Index -0.14 (92) 0.76 (41) -1.78 (53) 0.15 (91) 0.18 (85) 1.36 (86) IM U.S.Intermediate Duration(SA+CF)Median 0.20 0.72 -1.75 0.34 0.40 1.74 54 (CTILE ),„BOGDAHN GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years 10.0 0.00 Over Performance 6 rc 8.0 ! 25.00 o e+ v 800000000000000000 00 M 50.00 g. ; 75.00 0000 00000 i000 �00 re`w 43 •. illi Under 100.00 I I 1 2 0 Performance 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 I I I 23 33 43 53 63 73 83 93 10.0 Total 5-25 25-Median Median-75 75-95 Barclays Intermediate Aggregate Index(%) Period Count Count Count Count • Intermediate Core 20 0 (0%) 19(95%) 1(5%) 0(0%) • Over Performance + Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0 (0%) 1(5%) 13(65%) 6(30%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 3.90 5.13 - ems`^, ems`.3.60 - • ^4.86- • E 3.30 - E4.59- *al 11 Kt 330 ■ • Kt 432■ • I I I I I I I I I I I 1.96 2.03 2.10 2.17 2.24 2.31 2.38 2.45 2.52 2.25 2.34 2.43 2.52 2.61 2.70 2.79 2.88 2.97 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 3.64 2.43 • Intermediate Core 4.90 2.82 • Barclays Intermediate Aggregate Index 3.04 2.10 • Barclays Intermediate Aggregate Index 4.24 2.38 Median 3.50 2.09 Median 5.01 2.72 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.43 113.40 101.87 0.36 1.35 1.55 1.08 1.30 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.42 1.00 1.11 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.53 112.71 105.85 0.31 1.20 1.91 1.08 1.34 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.16 55 (CTHE )4,BOGDAHN GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv(TGBAX) 20 Quarters Rolling Periods As of March 31,2014 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 ,---"\ 25.0 \ AYC 91 c N 50.0 a w c K 75.0— 100.0 1 I I I I I I I I I I I I I I I I I I I I 9/03 3/04 9/04 3/05 9/05 3/06 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 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 20 (47%) 17 (40%) 1 (2%) 5 (12%) Manager composite returns used for chart population. THE 56 ( , BOGDAHN `~' GROUP. Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending March 31,2014 Relative Performance 10.0 8.0 6.0 4.0 iI ,,.._. 2.0 lid, III,Ii. I .I kb_ , ., . hi ,,IIII, II. , _, _ I. . ,II. . X1111,1 di] 0.0 II �Ilr. .1, I III ICI �I�.. .II I .I I I I I III I I • II-2.0 I IIIII -4.0 -6.0— -8.0• -10.0 i i r i i r i r r i r r i r i i i i i r i i r 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 8/13 3/14 — Cumulative Annualized Over/Under Relative Performance . Over/Under Performance Calculation based on monthly periodicity. THE 57 (r , BOGDAHN ♦~� GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of March 31,2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To March 31,2014 No data found. Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 20.00 $500.00 - 15.00 $400.00 - $393.87 10.00 - • $300.00 - 5.00 - • $245.77 rc • Mil MIN • • $200.00 ■ 0.00 - -5.00 ■ $100.00 ■ -10.00 I I I I I I $0.00 1 1 1 1 1 1 1 1 1 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 3/14 •Templeton GI Bond;Adv(TGBAX) 0.76 (95) 3.50 (29) 1.75 (33) 5.74 (8) 4.69 (24) 5.62 (26) 9.52 (21) •Citigroup VVorld Government Bond 2.66 (41) 1.55 (90) 1.37 (39) 0.35 (89) 1.91 (82) 3.23 (74) 3.84 (95) - Templeton GI Bond;Adv(TGBAX) Median 2.43 2.78 0.82 2.70 3.36 4.02 6.34 - Citigroup World Government Bond Comparative Performance J 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr 1Qtr Ending Ending Ending Ending Ending Ending Dec-2013 Sep-2013 Jun-2013 Mar-2013 Dec-2012 Sep-2012 Templeton GI Bond;Adv(TGBAX) 2.71 (2) 1.07 (49) -2.73 (33) 1.41 (7) 3.83 (2) 5.40 (11) Citigroup VVorld Government Bond -1.09 (91) 2.88 (3) -2.97 (40) -2.77 (99) -1.71 (100) 2.99 (73) IM Global Fixed Income(MF)Median 0.71 0.99 -3.27 -0.45 1.12 3.43 TILE 58 ( , BOG DAHN \~� GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of March 31,2014 3 Yr Rolling Under/Over Performance-5 Years 3 Yr Rolling Percentile Ranking-5 Years gg0000000 m 15.0 Perfoormance O o 0 0 0 0 2.0 O q� rc 25.00 0 0 0 0 0 0 0 0 0 0 9.0 0 O V 50.00 0 0 O O 6.0 0. 0 0 a 0 m mX E 75.00 ■ t7 3.0 T, 0 0 0 0 00 ° 0 0 0 100.00 ffi 0.0 I Under 1 1 r I Performance 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14 -2.0 0.0 2.0 4.0 6.0 8.0 ,0.0 12.0 14.0 16.o Total Period 5-25 25-Median Median-75 75-95 Citigroup Wotltl Government Bond(%) Count Count Count Count •Templeton GI Bond;Adv(TGBAX) 20 16(80%) 4(20%) 0 (0%) 0(0%) • Over Performance + Earliest Date X Latest Date •Citigroup VVorld Government Bond 20 5(25%) 3(15%) 1 (5%) 11(55%) oup Scattergram-3 Years Peer Group Scattergram-5 Years 5.46 12.00 _4.55 ■ • ^,10.00 • e e 3.64 - 8.00 fi 2.73 ■ fi 6.00 Kt Kt 1.82 - 0 4.00 - 0.91 I I I I 2.00 I I I I I 3.40 4.25 5.10 5.95 6.80 7.65 8.50 9.35 10.20 5.20 5.72 6.24 6.76 7.28 7.80 8.32 8.84 9.36 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Templeton GI Bond;Adv(TGBAX) 4.69 9.26 •Templeton GI Bond;Adv(TGBAX) 9.52 8.59 • Citigroup VVorld Government Bond 1.91 4.70 •Citigroup VVorld Government Bond 3.84 5.96 Median 3.36 5.27 Median 6.34 5.84 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 8.23 124.41 80.47 3.25 0.37 0.54 0.91 6.60 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.41 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) 8.42 120.47 42.04 7.62 0.66 1.09 0.54 5.47 Citigroup VVorld Government Bond 0.00 100.00 100.00 0.00 N/A 0.65 1.00 3.99 THE 59 c: BOGDAHN ♦~� GROUP. The Market Environment Plan Investment Performance Quarter Ended: March 2014 Portfolio Attribution (Reference The Bogdahn Group March 2014 Report) Market Review— So far this year it has been a much bumpier ride with market volatility above what was seen for almost all of 2013.Extreme weather in the U.S.likely held back economic growth in much of the country during the quarter.However,the question is,how much of the recent softness in economic data can be attributed to poor weather alone?As the quarter wore on,investors gained comfort in the view that weaker economic data was more a byproduct of inclement weather,rather than reflecting a broader economic slowdown.Comments from Fed Chair Janet Yellen during the quarter also seemed to support this theory. After a positive 2013,the first quarter of 2014 proved to be challenging for equities.Concerns about economic growth in emerging markets,geopolitical turmoil in Ukraine, and somewhat softer macro data in the U.S.injected more risk aversion into markets.However,profit-taking and tempered expectations for a repeat performance of stellar 2013 returns drove down investor risk tolerance in the first quarter.With investors taking a more cautious approach toward equities,it was not surprising to see markets get off to a rough start in January,though most major global indices rebounded in February and March,finishing the quarter in positive territory,led by U.S.equities. The Fed continues to reduce its purchases of Treasury and mortgage bonds.The taper has the Fed reducing its amount of stimulus as the economy normalizes,and the rate of reduction remained steady during the quarter. Notes released from the March Fed meeting indicated that the Federal Open Market Committee believes that the economy is continuing to strengthen.This,along with a comment from new Fed chair Janet Yellen that rates would increase about"six months"after the end of the taper,led to some market turbulence.Still,the Fed's overall message that the economy was exhibiting a sustainable upward trend provided a reason for optimism. Despite a heightened level of caution with in the markets there is ample evidence to suggest that domestic stocks will remain the preferred habitat for investors.These remain from previous quarters and 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. Plan attribution: • Plan assets earned$736,418 from investments for the 1st fiscal quarter 2014,of which$135,275 came from interest income and$601,143 from market appreciation. • Plan earnings fiscal year to date of$292,093(income)plus$2,856,195(appreciation)equates to a 9.66%net return vs.a policy benchmark return of 7.90%. • These results place the Plan in the top 4th percentile f.y.t.d.,top 8th percentile for 3 years,and top 17th 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 Templeton Global Bond Fund was the worst performing investment as currency reversals held back performance. • Investment diversification to Real Estate continued to influence results positively with both manager allocations providing meaningful,and steady returns. voN THE 60 ` BOGDAHN `J GROUP The Market Environment Plan Investment Performance Quarter Ended: March 2014 Portfolio Attribution 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? • All areas of the portfolio experienced positive market returns. Recommendations/Actions: • Review R&D balances and rebalancing proceedures • Confirm legal compliance of amended IPS and commence funding to Crescent Middle Market Debt strategy. voN THE 61 lr BOGDAHN \`� GROUP Benchmark Historical Hybrid Compositions Total Fund As of March 31,2014 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. 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. 63 Compliance Checklist Total Fund Winter Springs GE As of March 31,2014 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: Mil Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ ✓ Manager mpliance: T Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1.Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ 2.Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ 3.Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ 4.Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ 5.Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 6.Three year down-market capture ratio less than the index. ✓ ✓ ✓ 64 Disclosures Total Fund As of March 31,2014 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 65 l� 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 66 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. 67 /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