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HomeMy WebLinkAbout2014 11 12 Regular 600 4th Quarter Investment Return Report Winter Springs General Employees' General Plan and Trust Investment Performance Review 3rd Quarter 2014 THE BOGDAHN GROUP® W W W.B O G D A H N G R O U P.C O M �I sinrpli fjii�;your investment rnrd fidrrciarh decisions 3rd Quarter 2014 Market Environment [Hk: 1 BOGDAHN GROUP. The Market Environment Major Market Index Performance As of September 30,2014 • Large cap companies made it through the quarter relatively unscathed Quarter Performance compared to their mid and small cap peers. While experiencing the same MSCI ACWxUS -5.2% `down-up-down' monthly pattern as seen in mid and small caps, the MSCI EAFE -5.8% magnitude of the declines was far less pronounced. The strong +4.0% MSCI Emerg Mkts -3.4% August return of large caps more than offset the minor declines in both July and September. The general consensus was that macro uncertainty (ISIS, S&P 500 1.1% Ukraine, Ebola, etc.) had a disproportionate impact on small and mid cap Russell 3000 J 0.0% companies when compared to large caps, largely due to investor preference Russell 1000 0.7% for safe haven blue chip equities. Russell MidCap -7.4% -1.7% Russell 2000 • Small cap stocks experienced their worst quarter in three years and ended a - streak of eight consecutive positive quarters. After months of worry Barclays US Agg -1 0.2% expressed by small cap managers regarding stretched valuations for small Barclays US Govt 0.3% cap companies, these fears were finally realized in the third quarter as the Barclays US TIPS -2.0% market sold off considerably. Unlike the first two quarters of the year, which Barclays MBS ] 0.2% were both marked by slow starts to the quarter followed by two consecutive Barclays Corp IG 0.1% up months, the third quarter saw the Russell 2000 decline -6.0% in July, followed by an increase of+5.0% in August, only to reverse course again in 3-Month T-Bill 1 o.o°r° September,declining -6.0%. -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% • In international equity, emerging markets (-3.4%) once again outperformed 1-Year Performance developed markets (-5.8%) for the quarter. However, both market segments posted negative absolute returns, primarily driven by September's sell-off. MSCI ACWxus 5.2°r° While one-year returns for the three non-US equity indices remained in MSCI EAFE 4.7% positive territory, they significantly lagged all domestic equity index MSCI Emerg Mkts 4.7% performance with the exception of small caps. _ S&P 500 19.7% • After moving higher in the first half of 2014, domestic bonds were essentially Russell 3000 17.8% flat during the third quarter, rising just +0.2%. The trailing, one-year return Russell 1000 19.0% remained in positive territory (+4.0%). Performance dispersion across Russell MidCap 15.8% sectors was low, as Government Bonds returned +0.3% followed by Russell 2000 3.9% Mortgages at +0.2%. In contrast, Corporate Bonds lagged, declining -0.1% _ for the period. TIPS performance remained volatile, falling -2.0% after rising Barclays US Agg _ 4.0% sharply in the first half of the year. Barclays US Govt _ 2.3% Barclays US TIPS 1.6% Barclays MBS 3.8% Barclays Corp IG 6.8% 3-Month T-Bill 0.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source:Investment Metrics THE 2 C BOGDAHN GROUP. The Market Environment Domestic Equity Style Index Performance As of September 30,2014 Quarter Performance - Russell Style Series • Large cap stocks tend to outperform mid and small cap companies at the tail end of economic cycles, so the returns seen in the chart to the right were no 3000 Value 0.9% surprise. However, the disparity of returns was somewhat unexpected and 3000 Index 0.0% was largely driven by macro uncertainty and investor preference. With 3000 Growth 0.9% interest rates remaining low, equities remained the investment of choice by - income-starved investors. Despite a challenged third quarter, dividend 1000 Value -0.2% paying companies had a strong first half of the year, and a higher percentage - of dividend payers resided in greater numbers in the larger market 1000 Index 0.7% capitalization areas. In addition, investors often flocked to the security of 1000 Growth large caps when macro uncertainties became more pronounced. 1.5% MidCap Value -2.6% • The third quarter represented the second consecutive quarter in which small MidCap Index -1.7% cap stocks lagged large cap stocks. Notably, the relative performance gap - was the largest since the first quarter of 1999. MidCap Growth o.7°%° • Equities with the highest quartile dividend yield returned -5.6% during the 2000 Value -8.6% period. This is a stark contrast from the first two quarters in which the highest 2000 Index -7.4% yielding companies returned +10.2%. Much of this heightened volatility was 2000 Growth -6.1% attributed to the end of the Fed's quantitative easing (QE) program, which culminated in October. With the prospect of interest rates naturally creeping -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% higher over time as a result of the additional stimulus, higher dividend paying 1-Year Performance - Russell Style Series companies temporarily suffered. 3000 Value di 17.7% • The discrepancy in quarterly returns between growth and value benchmarks 3000 Index 17.8% was largely related to performance within the Health Care sector. Health 3000 Growth 17.9% Care was the second best performing sector during the quarter in both value and growth benchmarks (only Financials were better in value; Consumer 1000 Value } 11 .9% Staples in growth). However, Health Care made up a far higher percentage - weight in the growth benchmarks, catapulting growth benchmarks ahead of 1000 Index 1 .0% value in all market capitalizations. 1000 Growth 19.1% • As a result of the recent sell-off, on an absolute basis, small cap stocks MidCap Value 17.5% became cheaper, when compared to their mid cap brethren, but remained MidCap Index 15.8% more expensive than large caps. At 17.8x current P/E, small caps fell MidCap Growth 14.4% between mid caps (18.1x) and large caps (15.2x). On a relative P/E basis, when compared to 20-year average P/E ratios, value appeared overvalued across all capitalizations while growth was undervalued across the 2000 Value 4.1% capitalization spectrum. 2000 Index 3.9% 2000 Growth 3.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source:Investment Metrics ^ THE 3 \ BOGDAHN GROUP. The Market Environment GICS Sector Performance & (Sector Weight) As of September 30,2014 • There was wide economic sector performance dispersion during the third Russell 1000 ❑Quarter ❑1-Year quarter. Within large caps, Health Care and Technology posted the Consumer Disc(12.4%) 0.1% strongest results. These two areas comprised a larger combined weight in 1 12.0% the Russell 1000 Growth Index (42.0%) than in the Russell 1000 Value Consumer Staples(8.6%) $5% 1.6% I 16.5% Index (22.9%). As a result, growth outpaced value during the third quarter. These sectors house some of the largest companies in the S&P 500 Index Energy(10.0%) 1--MMI 12.5% and many have led the index on a year-to-date basis. 1.5% Financials(16.8%) I 17.3% • After performing very well in the second quarter, both the Energy and Health Care(13.1%) 5.3% Utilities sectors experienced a reversal due to selling off during the third - 1 28.0% quarter. Energy did poorly in large caps (-8.5%) but fared even worse in the Industrials(11.2%) -2.1% I 15.6% Russell 2000 Index of small cap companies, declining -20.6%. While seven II of the ten S&P 500 economic sectors finished the third quarter higher, each Info Technology(18.7%) 4.3% 27.6% sector of the Russell 2000 posted negative returns for the period. -0.8°/0 r Materials(3.8%) I 19.1% • On a trailing P/E basis, Energy and Telecom Services were significantly Telecom Services(2.3%) 1 2.8% cheaper than other sectors within the S&P 500. These two areas traded at - 1 14.5% ° 14.6x and 10.7x, respectively, which was well below the Index trailing P/E of Utilities(3.1%) 4.4/0 1 15.9% 18.4x. On a relative basis, when compared to the 20-year average P/E ratio , of 19.5x, the index was fairly valued to somewhat cheap. In fact, half the -10.0% 0.0% 10.0% 20.0% 30.0% index trades below its long-term average P/E. Russell 2000 ❑Quarter 01-Year • Traditionally, September is the worst month for equity markets and this year Consumer Disc(13.2%) -8.5% -2.3% I was no exception. Despite a weak September, there is some reason for ° optimism. First, the US dollar (USD) continues to gain strength. Since many Consumer Staples(3.2%) 3.3/o s.s°r° global commodities are priced in USD, the USD's strength has a downward -20.6% I - pressure on commodity prices, particularly crude oil (-10%), which can fuel Energy(6.2%) -1.4% L greater discretionary consumption and lead to stronger GDP growth. In Financials(23.3%) -5.2% I addition, US companies have arguably superior relative fundamental growth - 1 6.9°/ prospects, which should provide support to domestic equities going forward. Health Care(13.2%) 3.5% 1 10.2°r° Industrials(14.1%) -9.5% I 1.9% Info Technology(17.7%) -5.6% I 3.9% I Materials(5.1%) -8.4% I 4.5% Telecom Services(0.8%) -7.0% -2.3% I Pr Utilities(3.3%) -9.9% I 9.8% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Source:Morningstar Direct ^ THk 4 \ BOGDAHN GROUP. The Market Environment Top 10 Index Weights& Quarterly Performance for the Russell 1000 &2000 As of September 30,2014 Top 10 Weighted Stocks �ussell1000 Weight 1-Qtr 1-Year Sector ssell2000 Weight 1-Qtr 1-Year Sector Return Return Return Return Apple Inc 3.01% 9.0% 51.3% Information Technology Puma Biotechnology Inc 0.35% 261.5% 344.6% Health Care Exxon Mobil Corporation 2.00% -5.9% 12.4% Energy Isis Pharmaceuticals 0.28% 12.7% 3.4% Health Care Microsoft Corp 1.90% 11.9% 43.3% Information Technology WEX Inc 0.27% 5.1% 25.7% Information Technology Johnson&Johnson 1.50% 2.6% 26.4% Health Care Team Health Holdings Inc 0.25% 16.1% 52.8% Health Care General Electric Co 1.27% -1.7% 10.9% Industrials Graphic Packaging Holding Co 0.25% 6.2% 45.2% Materials Berkshire Hathaway Inc Class B 1.25% 9.1% 21.7% Financials Ultimate Software Group Inc 0.25% 2.4% -4.0% Information Technology Wells Fargo&Co 1.23% -0.6% 29.1% Financials Prosperity Bancshares,Inc. 0.25% -8.3% -6.1% Financials JPMorgan Chase&Co 1.13% 5.3% 19.7% Financials Brunswick Corp 0.24% 0.3% 6.6% Consumer Discretionary Chevron Corp 1.13% -7.8% 1.6% Energy RLJ Lodging Trust 0.23% -0.4% 25.7% Financials Procter&Gamble Co 1.12% 7.4% 14.3% Consumer Staples CNO Financial Group Inc 0.23% -4.4% 19.2% Financials Top 10 Performing Stocks(by Quarter) ` Top 10 Performing Stocks(by Quarter) Weight 1-Qtr 1-Year Sector 1-Qtr Return Return _ United States Steel Corp 0.02% 50.6% 91.6% Materials Puma Biotechnology Inc 0.35% 261.5% 344.6% Health Care United Therapeutics Corp 0.02% 45.4% 63.2% Health Care AVANIR Pharmaceuticals Class A 0.13% 111.3% 181.8% Health Care Weight Watchers International Inc 0.01% 36.0% -26.6% Consumer Discretionary EveryWare Global Inc 0.00% 102.3% -76.9% Consumer Discretionary Concur Technologies Inc 0.03% 35.9% 14.8% Information Technology OvaScience Inc 0.02% 81.0% 67.5% Health Care Veritiv Corp 0.00% 35.1% NA Industrials Peregrine Semiconductor Corp 0.02% 80.3% 37.9% Information Technology Sigma-Aldrich Corp 0.06% 34.3% 61.0% Materials Amicus Therapeutics Inc 0.00% 78.1% 156.5% Health Care Pharmacyclics Inc 0.05% 30.9% -15.1% Health Care IGI Inc 0.02% 75.5% 412.1% Consumer Staples American Eagle Outfitters 0.02% 30.5% 7.9% Consumer Discretionary Enphase Energy Inc 0.02% 75.3% 84.6% Industrials Ulta Salon Cosmetics&Fragrances Inc 0.04% 29.3% -1.1% Consumer Discretionary PTC Therapeutics Inc 0.06% 68.4% 105.1% Health Care Dresser-Rand Group Inc 0.03% 29.1% 31.8% Energy Century Aluminum Co 0.08% 65.6% 223.4% Materials Bottom 10 Performing Stocks(by Quarter) la =111 Bottom 10 Performing Stocks(by Quarter) Russell 1000 Weight 1-Qtr 1-Year Sector Russell 2000 Weight 1-Qtr 1-Year Sector Return Return Return Return Theravance Inc 0.02% -42.0% -47.5% Health Care NII Holdings Inc 0.00% -90.0% -99.1% Telecommunication Services SandRidge Energy Inc 0.02% -40.0% -26.8% Energy Regado Biosciences Inc 0.00% -83.4% -83.1% Health Care Nu Skin Enterprises Inc Class A 0.03% -38.6% -52.0% Consumer Staples Endeavour International Corp 0.00% -78.2% -94.4% Energy Sears Holdings Corp 0.01% -36.9% -47.7% Consumer Discretionary Body Central Corp 0.00% -78.0% -96.8% Consumer Discretionary Rite Aid Corp 0.00% -32.5% 1.7% Consumer Staples Quicksilver Resources Inc 0.00% -77.4% -69.4% Energy Herbalife Ltd 0.03% -32.2% -36.7% Consumer Staples Marrone Bio Innovations Inc 0.00% -77.1% -84.2% Materials Aaron's Inc 0.01% -31.7% -12.0% Consumer Discretionary ITT Educational Services,Inc. 0.01% -74.3% -86.2% Consumer Discretionary SeaWorld Entertainment Inc 0.01% -31.4% -33.1% Consumer Discretionary Vringo Inc 0.00% -72.4% -67.1% Information Technology Kate Spade&Co 0.00% -31.2% 4.4% Consumer Discretionary Cytori Therapeutics Inc 0.00% -71.7% -71.0% Health Care Cliffs Natural Resources Inc 0.02% -30.4% -47.8% Materials L&L Energy, Inc. 0.00% -69.9% -91.6% Energy Source:Morningstar Direct �,' BOGDAH 5 N GROUP. The Market Environment International and Regional Market Index Performance (Country Count) As of September 30,2014 Quarter Performance ❑USD ❑Local Currency • After a relatively stable first half of 2014, volatility spiked during the third AC World x US(45) -5.2% I quarter. July and September were significant, negative months for the 10.9% developed overseas indices, while August returns were slightly positive. WORLD x US(22) -5.7 4 0.9% • Similar to last quarter, the range of returns for the individual countries EAFE(21) -5.8% outside of the US was wide. The only developed country whose equities I 1.0% ended the quarter in positive territory was Israel +0.4% . The worst- -6.9% q p rY ( ) Europe&ME(16) ° performing developed country was Portugal (-24.9%) followed closely by -0.1/° Austria (-21.5%). On the emerging side, Egypt and the UAE were the top Pacific(5) -3.6/° equity performers, up +28.2% and +22.9%, respectively. Greece was - again the worst performing equity market within the EM universe with a Emerging Mkt(23) -3.4% ° o.7°%° return of-20.0%for the quarter. -7.8/° EM EMEA(10) 0.5% • During the third quarter, USD appreciation created a significant drag on returns for U.S. investors in overseas markets.All four of the broad, non- EM Asia(8) -1.4% 0.6% US equity indices shown to the right ended the quarter in positive territory when measured in local currency terms, but negative performance in EM Latin Amer(5) -5. /o USD. I 2.3% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% • USD strength weighed on the Energy sector during the third quarter, 1-Year Performance ■USD ❑Local Currency which posted the weakest sector return (-10.0%) in the MSCI-ACWI xUS index. The Materials sector, which is also negatively impacted by USD AC World x US(45) 15.2°r° 11.3% strength, was the second worst performing sector within the MSCI ACWI x US index, returning -9.5% for the quarter. In the developed market WORLD x US(22) i 15.3% MSCI-EAFE index, Health Care was the only sector to end the quarter in I 12.1% positive territory (+0.4%). Health Care (+9.9%) was also positive in the EAFE(21) 4.7% MSCI-EM index along with Telcom Services, which returned 6.2%for the I 11.2% third quarter. Europe&ME(16) 6.s% 11.6/0 • The Health Care sector's strength led growth to outperform value in both Pacific(5) 1.2% 10.2/° developed and emerging markets. Small cap stocks underperformed 4.7% ° large caps in developed markets but outperformed in emerging markets. Emerging Mkt(23) 8.6% -4.9°/0 EM EMEA(10) I 6.7% EM Asia(8) 9.4% 9.7% EM Latin Amer(5) -0.7% I 7.2% I -5.0% 0.0% 5.0% 10.0% 15.0% Source:MSCI Global Index Monitor(Returns are Gross) �ON\ THE 6 Li" B°GDAHN GROUP. The Market Environment U.S. Dollar International Index Attribution &Country Detail As of September 30,2014 MSCI-EAFE Sector Weight Quarter Return 1-Year Return MSCI-ACWIxUS 1-Ye. Country Weight Return Return Consumer Discretionary 11.6% -8.4% -1.9% United Kingdom 21.3% 15.1% -6.1% 6.2% Consumer Staples 10.9% -6.9% 3.1% Japan 21.0% 14.8% -2.2% 0.9% Energy 6.9% 11.1% 7.6% France 9.9% 7.0% -8.3% 2.6% Switzerland 9.2% 6.5% -4.4% 7.4% Financials 25.7% -4.6% 3.7% Germany 8.8% 6.2% -11.2% 2.6% Health Care 11.2% 0.4% 20.9% Australia 7.5% 5.3% -7.9% -0.5% Spain 3.6% 2.6% -7.4% 16.2% Industrials 12.5% -7.0% 0.8% Sweden 3.1% 2.2% -5.8% 1.8% Information Technology 4.7% -0.7% 8.4% Hong Kong 2.9% 2.1% -2.6% 5.3% Materials 7.7% -9.3% -2.6% Netherlands 2.7% 1.9% -4.6% 5.4% Italy 2.5% 1.8% -8.6% 16.3% Telecommunication Services 4.9% -5.2% 7.8% Denmark 1.6% 1.1% -3.8% 27.7% Utilities 3.9% -5.4% 10.4% Singapore 1.5% 1.1% -1.2% 4.3% Total 100.0% -5.4 i 4 Belgium 1.3% 0.9% -3.7% 12.5% Finland 0.9% 0.6% -2.9% 15.1% MSCI ht Norway 0.9% 0.6% -7.4% 11.1% SCI-ACWIxUS Sector Weight Israel 0.6% 0.4% 0.4% 29.8% Consumer Discretionary 10.6% -7.7% -0.3% Ireland 0.3% 0.2% -3.1% 12.2% Consumer Staples 9.8% -5.8% 2.6% Austria 0.2% 0.2% -21.5% -21.3% Portugal 0.2% 0.1% -24.9% -18.1% Energy 9.1% -10.0% 4.6% New Zealand 0.1% 0.1% -8.7% 1.3% Financials 27.0% -3.6% 5.0% Total EAFE C 70.7% -5.8% Health Care 8.7% 0.9% 21.1% Canada 7.6% -4.3% 11.6% Total Developed Countries 78.3% 5.7%5.3% Industrials 10.9% -5.7% 3.0% China 4.2% 1.5% 4.9% Information Technology 7.0% -3.5% 12.9% Korea 3.3% -7.3% 0.6% Taiwan 2.6% -3.0% 12.9% Materials 8.0% -9.5% -3.8% Brazil 2.2% -8.6% -4.3% Telecommunication Services 5.3% -1.9% 7.5% South Africa 1.6% -6.5% 5.1% Utilities 3.6% -5.1% 10.9% India 1.5% 2.3% 37.6% Mexico 1.2% 2.1% 11.9% Total 100.0% ' Russia 1.0% -15.1% -19.2% Malaysia 0.9% -3.2% 5.2% MSCI-Emerging Mkt Sector Weight Indonesia 0.6% 3.5% 20.5% Consumer Discretionary 9.0% -6.4% 4.0% Thailand 0.5% 7.7% 11.8% Poland 0.4% -2.1% 4.3% Consumer Staples 8.3% -2.4% -1.3% 0 0 0 Turkey 0.3/o -11.8%8 -8. /o 4 Energy 10.2% -7.5% -5.1% Chile 0.3% -7.7% -13.7% Financials 27.5% -1.1% 4.9% Philippines 0.3% 4.2% 19.3% Colombia 0.2% -8.3% -7.5% Health Care 2.1% 9.9% 26.3% Greece 0.1% -20.0% -7.1% Industrials 6.6% -3.0% 4.6% Qatar 0.1% 17.7% 36.8% Information Technology 16.7% -6.0% 17.2% United Arab Emirates 0.1% 22.9% 72.6% Peru 0.1% -1.6% 14.7% Materials 8.3% -8.2% -6.0% Egypt 0.1% 28.2% 68.9% Telecommunication Services 7.7% 6.2% 5.8% Czech Republic 0.1% 5.2% 16.5% Utilities 3.6% -3.8% 14.4% Hungary 0.0% -12.8% -22.0% Total Emerging Countries 21.7% Total 100.0% 3.4% 4.7% Total ACWIxUS Countries 100.0% Source:MSCI Global Index Monitor(Returns are Gross in USD) M THE 7 [� BOGDAHN ``� GROUP. The Market Environment Domestic Bond Sector& Broad/Global Bond Market Performance (Duration) As of September 30,2014 • Domestic bond markets were mostly flat in the third quarter, as economic Quarter Performance fundamentals continued to indicate moderate growth and low inflation. AAA(5.1) 0.2% Central bank policy remained mostly unchanged as the Federal Reserve AA(5.7) 0.3% remained on pace to end its QE program in October. Conversely, in A(7.1) o.o°r° September the European Central Bank announced additional interest rate cuts as well as the creation of their own bond buying (QE) program. Baa(7.4) -0.2% I The moves were designed to boost anemic growth in the Eurozone. U.S.High Yield(4.4) -1.9% U.S.Treasury(5.3) 0.3% • In contrast to the second quarter, when all major sectors posted positive U.S.Mortgage(5.0) 0.2% results, sector performance was mixed during the third quarter. Treasuries and mortgages rose +0.3% and +0.2%, respectively. These U.S.Corporate IG(7.1) -0.1% f modest gains were partially off-set by weakness in corporate credit (- u.S.TIPS(7.2) -2.0% 0.1%)and TIPS (-2.0%). - • After outperforming for several quarters, lower rated bonds lagged their Aggregate(5.6) _ 0.2% higher quality peers. Baa-rated bonds lagged higher quality credits by 20 Intermediate Agg(4.3) J 0.0% -50 basis points(bps) during the period. On a one-year basis, Baa-rated Global Agg x US(7.1) -5.4% bonds outpaced higher-rated credits by a wide margin. Multiverse(6.3) -3.2% • Longer-dated securities outperformed short and intermediate maturities 6.o°%o 5.O% 4.O% 3.o°%o 2.0% 1.0% 0.0% 1.0% despite the continued decline of the Federal Reserve's QE program. The 1-Year Performance rally pushed the broad-based Barclays Aggregate Index ahead of the Barclays Intermediate Index by+0.2%for the quarter and +1.3% over the AAA(5.1) 2.9% past twelve months. AA(5.7) 4.4% A(7.1) 6.1% • High Yield bonds fell -1.9%, marking the first negative quarterly return for Baa(7.4) I 8.3 0r0 the asset class since the second quarter of 2013. After exceeding investment grade bonds for seven consecutive quarters, high yield bonds U.S.High Yield(4.4) 7.2% trailed investment grade securities for the last six months, but remain U.S.Treasury(5.3) 2.3% ahead on a trailing one-year basis by 40 bps. U.S.Mortgage(5.0) 3.8% The US bond market easily outpaced International bonds, represented U.S.Corporate IG(7.1) 6.8% • by the Barclays Global Aggregate ex US Index, which was negatively U.S.TIPS(7.2) 1.6% impacted by USD strength by 560 bps. The third quarter's weak performance by global bonds pushed one-year trailing domestic bond Aggregate(5.6) 4.0% performance ahead by a wide margin. Intermediate Agg(4.3) 2.7% Global Agg x US(7.1) -0.8% Multiverse(6.3) 1.4% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source:Barclays Capital Live �� THE 8 `� BOGDAHN GROUP. The Market Environment Market Rate &Yield Curve Comparison As of September 30,2014 1-Year Trailing Market Rates • With the Fed's bond buying program drawing to a telegraphed close, 4.00 investors are increasingly focused on the timing and magnitude of an ■ Fed Funds Rate TED Spread 3-Month Libor eventual increase in interest rates and the impact it will have on bond 3.50 BAA OAS 10yr Treasury .10yr TIPS portfolios. 3.00 • After moving sharply lower in the second quarter, option adjusted spreads on Baa-rated bonds widened by 15 bps during the third quarter. 2.50 vj This spread widening has a negative impact on bond prices (which move in the opposite direction) and performance of lower quality credits. This 2.00 - quarter's rise in spreads erased the rally that occurred during the second quarter, though current spread levels remain below the level from one year ago. 1.50 - • The yield curve in the US continued to flatten during the third quarter. 1.00 Since prices and performance move in the opposite direction of yields, the long-end of the curve was the best performing maturity segment. The 0.50 yield on the 10-year Treasury rose from 2.53%to 2.65% in early July and then steadily rallied to 2.34% by late August. In September, bonds 0.00 retreated from the August rally, pushing the yield back to 2.52% by Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 quarter-end. Treasury Yield Curve 4.50 • Yields on shorter-dated maturities were essentially unchanged as the Fed continued to hold the Fed fund rate near zero. Rates on intermediate 4.00 —0-9/30/2013 X12/31/2013 X6/30/2014 9/30/2014 maturities ended the quarter 10 to 20 bps higher. • 3.50 • Since rising to more attractive yields in mid-to-late 2013, the yield curve has gradually flattened, spreads have narrowed, and interest rates have 3.00 - declined, particularly in longer-dated maturities.While this has resulted in mildly positive returns over the past twelve months, the return outlook is 2.50 - • -• likely to be challenged by the prospect of higher interest rates in the future. The impact of any future rate increases will likely be exacerbated 2.00 by the fact that low nominal yields and narrow credit spreads offer only a modest level of income to offset this interest rate risk, particularly if rates 1.50 rise significantly and in a short period of time. /• 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) 111.1‘ THE 9 [ BOGDAHN GROUP. Asset Allocation Summary Total Fund As of September 30,2014 Asset Allocation By Segment as of Asset Allocation By Segment as of June 30,2014:$36,502,614 September 30,2014:$36,437,643 41/41k 4111111111k r Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation Domestic Equity 16,781,266 46.0 Domestic Equity 16,779,784 46.1 International Equity 5,864,451 16.1 International Equity 5,406,026 14.8 Domestic Fixed Income 5,800,284 15.9 Domestic Fixed Income 5,758,526 15.8 Global Fixed Income 1,370,804 3.8 Global Fixed Income 1,361,535 3.7 • Real Estate 2,896,390 7.9 • Real Estate 2,986,572 8.2 Cash Equivalent 3,789,420 10.4 Cash Equivalent 4,145,201 11.4 'Flit. 10 c(-- BOGDAHN GROUP. Asset Allocation Summary Total Fund As of September 30,2014 Asset Allocation By Manager as of Asset Allocation By Manager as of June 30,2014:$36,502,614 September 30,2014:$36,437,643 Allocation Allocation Market Value Allocation Market Value Allocation Vanguard Total Stock Market(VITSX) 16,781,266 46.0 Vanguard Total Stock Market(VITSX) 16,779,784 46.1 RBC Global(Voyageur) 5,864,451 16.1 RBC Global(Voyageur) 5,406,026 14.8 Galliard Core Fixed Income 4,599,045 12.6 Galliard Core Fixed Income 4,603,250 12.6 Receipt& Disbursement 3,768,315 10.3 Receipt& Disbursement 4,104,947 11.3 • Intercontinental 2,096,623 5.7 • Intercontinental 2,171,962 6.0 Templeton Global Bond Fund(TGBAX) 1,370,804 3.8 Templeton Global Bond Fund(TGBAX) 1,361,535 3.7 Galliard TIPS 1,212,733 3.3 Galliard TIPS 1,185,806 3.3 American Core Realty Fund 809,377 2.2 American Core Realty Fund 824,333 2.3 THE, 11 1 BOGDAHN GROUP. Page Intentionally Left Blank 12 Asset Allocation vs. Target Allocation Total Fund As of September 30,2014 Asset Allocation vs.Target Allocation Vanguard Total Stock Market -3.9 RBC Global(Voyageur) -0.2 r Galliard Core Fixed Income -2.4% Galliard TIPS -1.7 Templeton Global Bond Fund(TGBAX) -1.3% American Core Realty Fund -2.7 r Intercontinental 1.0% Receipt&Disbursement 11.3% Galliard Cash 0.0% -15.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 15.0% Allocation Differences Market Value Allocation(%) Target(%) $ Vanguard Total Stock Market 16,779,784 46.1 50.0 RBC Global(Voyageur) 5,406,026 14.8 15.0 Galliard Core Fixed Income 4,603,250 12.6 15.0 Galliard TIPS 1,185,806 3.3 5.0 Templeton Global Bond Fund(TGBAX) 1,361,535 3.7 5.0 American Core Realty Fund 824,333 2.3 5.0 Intercontinental 2,171,962 6.0 5.0 Receipt& Disbursement 4,104,947 11.3 0.0 Galliard Cash - - 0.0 Total Fund 36,437,643 100.0 100.0 T Hk: 13 BOGDAHN GROUP. Asset Allocation History Total Fund As of September 30,2014 Historical Asset Allocation by Portfolio Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 ($) % ($) % ($) % ($) % ($) % Total Equity 22,185,810 60.89 22,645,717 62.04 21,721,660 61.42 24,533,160 70.96 21,747,126 68.36 Total Domestic Equity 16,779,784 46.05 16,781,266 45.97 16,003,501 45.25 19,041,959 55.08 16,832,629 52.91 Vanguard Total Stock Market(VITSX) 16,779,784 46.05 16,781,266 45.97 16,003,501 45.25 19,041,959 55.08 16,832,629 52.91 Total International Equity 5,406,026 14.84 5,864,451 16.07 5,718,159 16.17 5,491,201 15.88 4,914,496 15.45 RBC Global(Voyageur) 5,406,026 14.84 5,864,451 16.07 5,718,159 16.17 5,491,201 15.88 4,914,496 15.45 Total Fixed Income 7,150,591 19.62 7,182,582 19.68 7,054,505 19.95 6,970,377 20.16 6,638,552 20.87 Total Domestic Fixed Income 5,789,056 15.89 5,811,778 15.92 5,709,449 16.15 5,632,251 16.29 5,652,293 17.77 Galliard Core Fixed Income 4,603,250 12.63 4,599,045 12.60 4,527,502 12.80 4,463,859 12.91 4,465,982 14.04 Galliard TIPS 1,185,806 3.25 1,212,733 3.32 1,181,946 3.34 1,168,392 3.38 1,186,311 3.73 Total Global Fixed Income 1,361,535 3.74 1,370,804 3.76 1,345,056 3.80 1,338,127 3.87 986,260 3.10 Templeton Global Bond Fund(TGBAX) 1,361,535 3.74 1,370,804 3.76 1,345,056 3.80 1,338,127 3.87 986,260 3.10 Total Real Estate 2,996,295 8.22 2,906,000 7.96 2,850,017 8.06 2,802,484 8.11 2,717,434 8.54 American Core Realty Fund 824,333 2.26 809,377 2.22 798,958 2.26 785,657 2.27 777,069 2.44 Intercontinental 2,171,962 5.96 2,096,623 5.74 2,051,059 5.80 2,016,827 5.83 1,940,365 6.10 Receipt&Disbursement 4,104,947 11.27 3,768,315 10.32 3,737,282 10.57 266,325 0.77 707,646 2.22 Galliard Cash - 0.00 - 0.00 - 0.00 - 0.00 216 0.00 Total Fund Portfolio 36,437,643 100.00 36,502,614 100.00 35,363,463 100.00 34,572,347 100.00 31,810,974 100.00 'nil.. 14 C BOGDAHN GROUP. Asset Allocation History Total Fund As of September 30,2014 Historical Asset Allocation by Segment 90.0 III 75.0 60.0 c 0 0 45.0 Q 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 9/14 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income . Real Estate Cash Equivalent THE 15 [ BOGDAHN `� GROUP. Page Intentionally Left Blank 16 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs.All Public Plans-Total Fund As of September 30,2014 68.0 60.0 52.0 0 44.0 36.0 0 28.0 20.0 0 O 12.0 O 0 4.0 O O -4.0 -12.0 US Equity Intl.Equity US Fixed Income Intl.Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 46.05 (41) 14.84 (49) 15.89 (90) 3.74 (76) 0.00 8.22 (31) 11.27 (2) 5th Percentile 58.70 27.28 48.88 11.76 34.49 11.50 6.46 1st Quartile 49.62 19.82 34.44 5.27 20.35 8.89 2.28 Median 42.96 14.68 28.33 4.68 10.71 5.39 1.41 3rd Quartile 30.55 12.52 22.58 3.76 5.43 4.45 0.62 95th Percentile 19.48 7.95 13.05 1.50 2.20 2.62 0.05 THE 17 t BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30,2014 Financial Reconciliation Quarter to Date Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Equity 22,645,717 13,787 - - -13,787 -861 14,040 -473,085 22,185,810 Total Domestic Equity 16,781,266 - - - - - - -1,482 16,779,784 Vanguard Total Stock Market(VITSX) 16,781,266 - - - - - - -1,482 16,779,784 Total International Equity 5,864,451 13,787 - - -13,787 -861 14,040 -471,604 5,406,026 RBC Global(Voyageur) 5,864,451 13,787 - - -13,787 -861 14,040 -471,604 5,406,026 Total Fixed Income 7,182,582 -10,155 - - -3,330 -147 13,035 -31,395 7,150,591 Total Domestic Fixed Income 5,811,778 - - - -3,330 -147 2,881 -22,125 5,789,056 Galliard Core Fixed Income 4,599,045 - - - - - - 4,205 4,603,250 Galliard TIPS 1,212,733 - - - -3,330 -147 2,881 -26,330 1,185,806 Total Global Fixed Income 1,370,804 -10,155 - - - - 10,155 -9,269 1,361,535 Templeton Global Bond Fund(TGBAX) 1,370,804 -10,155 - - - - 10,155 -9,269 1,361,535 Total Real Estate 2,906,000 -9,611 - - -6,384 - 31,613 74,677 2,996,295 American Core Realty Fund 809,377 -9,611 - - -2,273 - 11,997 14,843 824,333 Intercontinental 2,096,623 - - - -4,111 - 19,616 59,834 2,171,962 Receipt&Disbursement 3,768,315 5,978 849,476 -503,113 - -15,823 112 - 4,104,947 Galliard Cash - - - - - - - - - Total Fund Portfolio 36,502,614 - 849,476 -503,113 -23,501 -16,831 58,800 -429,803 36,437,643 18 P THE BOGDAHN `� GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1,2013 To September 30,2014 Financial Reconciliation Fiscal Year to Date Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Equity 21,747,126 -2,829,270 - - -51,278 -3,921 406,319 2,916,835 22,185,810 Total Domestic Equity 16,832,629 -2,880,548 - - - - 233,846 2,593,857 16,779,784 Vanguard Total Stock Market(VITSX) 16,832,629 -2,880,548 - - - - 233,846 2,593,857 16,779,784 Total International Equity 4,914,496 51,278 - - -51,278 -3,921 172,473 322,978 5,406,026 RBC Global(Voyageur) 4,914,496 51,278 - - -51,278 -3,921 172,473 322,978 5,406,026 Total Fixed Income 6,638,552 299,116 - - -10,278 -588 58,443 165,345 7,150,591 Total Domestic Fixed Income 5,652,293 - - - -10,278 -588 11,258 136,371 5,789,056 Galliard Core Fixed Income 4,465,982 - - - -3,229 - - 140,497 4,603,250 Galliard TIPS 1,186,311 - - - -7,049 -588 11,258 -4,126 1,185,806 Total Global Fixed Income 986,260 299,116 - - - - 47,185 28,974 1,361,535 Templeton Global Bond Fund(TGBAX) 986,260 299,116 - - - - 47,185 28,974 1,361,535 Total Real Estate 2,717,434 -37,566 - - -48,251 - 109,346 255,332 2,996,295 American Core Realty Fund 777,069 -37,566 - - -8,875 - 40,401 53,304 824,333 Intercontinental 1,940,365 - - - -39,376 - 68,945 202,028 2,171,962 Receipt&Disbursement 707,646 2,565,145 2,879,000 -1,982,612 - -64,476 245 - 4,104,947 Galliard Cash 216 2,575 - - -2,791 - - - - Total Fund Portfolio 31,810,974 - 2,879,000 -1,982,612 -112,598 -68,986 574,352 3,337,512 36,437,643 19 P THE BOGDAHN `� GROUP. Comparative Performance Trailing Returns Total Fund As of September 30,2014 Comparative Performance Trailling Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund(Net) -1.08 (47) 11.85 (15) 11.85 (15) 15.47 (7) 10.99 (16) 5.46 (74) 11/01/2000 Total Fund Policy -0.64 (23) 11.38 (22) 11.38 (22) 15.29 (9) 11.39 (9) 5.17 (89) All Public Plans-Total Fund Median -1.14 10.05 10.05 13.35 10.08 5.83 Total Fund(New Mgrs)(Net) -1.08 (47) 11.85 (15) 11.85 (15) 15.47 (7) 10.99 (16) 5.03 (52) 10/01/2007 Total Fund Policy -0.64 (23) 11.38 (22) 11.38 (22) 15.29 (9) 11.39 (9) 6.08 (14) All Public Plans-Total Fund Median -1.14 10.05 10.05 13.35 10.08 5.07 Total Fund(Gross) 12.21 (9) 12.21 (9) 11.64 (5) g 6.15 (33) 11/01/2000 Total Fund Policy -0.64 (23) 11.38 (22) 11.38 (22) 15.29 (9) 11.39 (9) 5.17 (89) All Public Plans-Total Fund Median -1.14 10.05 10.05 13.35 10.08 5.83 Total Fund(New Mgrs)(Gross) -1.02 (45) 12.21 (9) 12.21 (9) 16.08 (4) 11.64 (5) 5.65 (25) 10/01/2007 Total Fund Policy -0.64 (23) 11.38 (22) 11.38 (22) 15.29 (9) 11.39 (9) 6.08 (14) All Public Plans-Total Fund Median -1.14 10.05 10.05 13.35 10.08 5.07 Total Equity -2.03 15.46 15.46 14.38 6.06 ' 01/01/2001 Total Equity Policy -1.35 14.65 14.65 21.04 13.78 4.71 Total Domestic Equity -0.01 (74) 17.58 (69) 17.58 (69) 22.33 (65) 15.11 (65) 5.95 (41) 11/01/2000 Total Domestic Equity Policy 0.01 (73) 17.76 (67) 17.76 (67) 23.08 (55) 15.78 (52) 4.38 (90) IM U.S. Large Cap Core Equity(SA+CF)Median 0.91 19.25 19.25 23.27 15.83 5.58 Total International Equity -7.80 (93) 10.08 (9) 10.08 (9) 20.54 (4) 12.28 (2) 6.35 (74) 11/01/2000 MSCI EAFE Index -5.83 (61) 4.70 (64) 4.70 (64) 14.16 (44) 7.04 (63) 4.57 (95) IM International Large Cap Value Equity(SA+CF)Median -5.68 5.76 5.76 13.60 7.70 6.95 Total Fixed Income -0.26 3.23 3.23 2.95 4.53 5.39 11/01/2000 Total Fixed Policy 0.03 2.74 2.74 2.09 3.58 5.24 Total Domestic Fixed Income -0.33 (82) 2.61 (100) 2.61 (100) 2.35 (100) 4.17 (100) 5.26 (58) 11/01/2000 Total Domestic Fixed Policy 0.03 (72) 2.74 (100) 2.74 (100) 2.09 (100) 3.58 (100) 5.24 (58) IM U.S. Large Cap Core Equity(SA+CF)Median 0.91 19.25 19.25 23.27 15.83 5.58 Total Global Fixed Income 0.06 (15) 6.31 (13) 6.31 (13) N/A N/A 7.64 (3) 12/01/2011 Total Global Fixed Income Policy -3.78 (91) -0.07 (97) -0.07 (97) N/A N/A -0.20 (95) IM Global Fixed Income(MF)Median -1.59 3.63 3.63 3.31 3.73 3.51 Total Real Estate lim 3.67 (25) 13.47 (41) 13.47 (41) 14.22 (34) 12.13 (63) 3.29 (44) 10/01/2007 NCREIF Fund Index-ODCE(EW)(Net) 3.24 (52) 12.40 (75) 12.40 (75) 12.35 (71) 12.40 (47) 2.63 (58) IM U.S. Open End Private Real Estate(SA+CF)Median 3.27 12.63 12.63 13.24 12.20 2.78 Returns for periods greater than one year are annualized.Returns are expressed as percentages. INN 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. 7�T Intercontinental Returns are preliminary 20 \ BOGDAHN Ay Parenthesized number represents pertinent peer group ranking:1-100,best to worst GROUP. Comparative Performance Trailing Returns Total Fund As of September 30,2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global(Voyageur) -7.80 (93) 10.08 (9) 10.08 (9) 20.54 (4) 12.28 (2) 2.76 (22) 11/01/2007 MSCI EAFE Index -5.83 (61) 4.70 (64) 4.70 (64) 14.16 (44) 7.04 (63) -0.28 (80) IM International Large Cap Value Equity(SA+CF)Median -5.68 5.76 5.76 13.60 7.70 0.57 Vanguard Total Stock Market(VITSX) -0.01 (29) 17.77 (24) 17.77 (24) N/A N/A 20.12 (36) 03/01/2013 Vanguard Total Stock Market Index Hybrid -0.02 (30) 17.77 (24) 17.77 (24) 23.11 (31) 15.87 (18) 20.16 (36) IM U.S. Multi-Cap Core Equity(MF)Median -0.96 15.30 15.30 21.71 14.20 19.24 Galliard Core Fixed Income 0.09 (25) 3.15 (37) 3.15 (37) 2.74 (48) 4.37 (25) 4.54 (78) 10/01/2007 Barclays Intermediate Aggregate Index 0.03 (37) 2.74 (60) 2.74 (60) 2.09 (80) 3.58 (74) 4.52 (80) IM U.S. Intermediate Duration(SA+CF)Median 0.00 2.87 2.87 2.70 3.95 4.89 Galliard TIPS -1.94 0.59 0.59 0.89 3.29 4.01 10/01/2007 Barclays U.S.TIPS 1-10 Year -1.99 0.61 0.61 0.92 3.43 4.14 Templeton Global Bond Fund(TGBAX) 0.06 (15) 6.33 (13) 6.33 (13) N/A N/A 7.65 (2) 12/01/2011 Citigroup World Government Bond -3.78 (91) -0.07 (97) -0.07 (97) -0.51 (97) 1.58 (96) -0.20 (95) IM Global Fixed Income(MF)Median -1.59 3.63 3.63 3.31 3.73 3.51 American Core Realty Fund 3.36 (46) 12.49 (72) 12.49 (72) 12.11 (73) 10.94 (100) 2.50 (63) 10/01/2007 American Core Realty Policy 3.24 (52) 12.40 (75) 12.40 (75) 12.34 (71) 12.16 (62) 5.51 (13) IM U.S. Open End Private Real Estate(SA+CF)Median 3.27 12.63 12.63 13.24 12.20 2.78 Intercontinental 3.79 (19) 14.10 (37) 14.10 (37) 15.21 (28) N/A 15.33 (33) 10/01/2010 NCREIF Fund Index-ODCE 3.24 (52) 12.40 (75) 12.40 (75) 12.35 (71) 12.40 (47) 13.80 (74) IM U.S. Open End Private Real Estate(SA+CF)Median 3.27 12.63 12.63 13.24 12.20 14.11 Returns for periods greater than one year are annualized.Returns are expressed as percentages. INN 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. n Intercontinental Returns are preliminary 21 \ BOGLAl ll�l u7�7 Ay Parenthesized number represents pertinent peer group ranking:1-100,best to worst GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 30,2014 Comparative Performance Fiscal Year Returns Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To To To Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Total Fund(Net) 11.85 (15) 11.85 (15) 15.72 (6) 18.95 (29) -1.17 (80) 10.67 (32) 0.70 (61) -16.84 (91) 13.03 (75) 7.89 (65) Total Fund Policy 11.38 (22) 11.38 (22) 15.06 (13) 19.59 (19) 2.53 (13) 9.13 (74) 0.33 (65) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 10.05 10.05 12.51 17.87 0.32 9.95 1.36 -13.67 14.39 8.65 Total Fund(New Mgrs)(Net) 11.85 (15) 11.85 (15) 15.72 (6) 18.95 (29) -1.17 (80) 10.66 (32) 0.68 (61) -16.82 (91) N/A N/A Total Fund Policy 11.38 (22) 11.38 (22) 15.06 (13) 19.59 (19) 2.53 (13) 9.13 (74) 0.33 (65) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 10.05 10.05 12.51 17.87 0.32 9.95 1.36 -13.67 14.39 8.65 Total Fund(Gross) 12.21 (9) 12.21 (9) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (20) 1.43 (50) -16.48 (89) 13.92 (58) 8.62 (51) Total Fund Policy 11.38 (22) 11.38 (22) 15.06 (13) 19.59 (19) 2.53 (13) 9.13 (74) 0.33 (65) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 10.05 10.05 12.51 17.87 0.32 9.95 1.36 -13.67 14.39 8.65 Total Fund(New Mgrs)(Gross) 12.21 (9) 12.21 (9) 16.33 (4) 19.81 (16) -0.45 (68) 11.40 (20) 1.39 (50) -16.46 (89) N/A N/A Total Fund Policy 11.38 (22) 11.38 (22) 15.06 (13) 19.59 (19) 2.53 (13) 9.13 (74) 0.33 (65) -12.11 (30) 11.97 (87) 9.55 (31) All Public Plans-Total Fund Median 10.05 10.05 12.51 17.87 0.32 9.95 1.36 -13.67 14.39 8.65 Total Equity 15.46 15.46 IIMI 27.08 -4.58 1 13.61 MP -1.09.61 10.83 Total Equity Policy 14.65 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 17.58 (69) 17.58 (69) 21.85 (35) 27.76 (63) -3.30 (89) 14.19 (8) -4.29 (36) -21.66 (62) 17.58 (43) 9.29 (67) Total Domestic Equity Policy 17.76 (67) 17.76 (67) 21.60 (37) 30.20 (46) 0.55 (57) 10.96 (30) -6.91 (63) -21.98 (67) 16.44 (60) 10.79 (49) IM U.S. Large Cap Core Equity(SA+CF)Median 19.25 19.25 20.73 29.79 1.16 9.43 -5.82 -20.49 16.97 10.76 Total International Equity 10.08 (9) 10.08 (9) 27.54 (15) 24.74 (3) -8.75 (55) 11.69 (14) 11.87 (21) -39.55 (100) 23.63 (55) 19.84 (67) MSCI EAFE Index 4.70 (64) 4.70 (64) 24.29 (40) 14.33 (55) -8.94 (57) 3.71 (66) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity(SA+CF)Median 5.76 5.76 22.79 15.33 -8.41 5.02 6.20 -27.36 23.91 20.94 Total Fixed Income 3.23 3.23 -0.59 7 10.53 0.64 4.96 3.27 Total Fixed Policy 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 2.61 (100) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (52) 10.53 (2) 0.64 (1) 4.96 (100) 3.27 (98) Total Domestic Fixed Policy 2.74 (100) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (15) 7.52 (78) 9.69 (2) 4.16 (1) 5.33 (99) 3.55 (98) IM U.S. Large Cap Core Equity(SA+CF)Median 19.25 19.25 20.73 29.79 1.16 9.43 -5.82 -20.49 16.97 10.76 Total Global Fixed Income 6.31 (13) 6.31 (13) 3.53 (3) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -0.07 (97) -0.07 (97) -4.60 (85) N/A N/A N/A N/A N/A N/A N/A IM Global Fixed Income(MF)Median 3.63 3.63 -1.52 7.34 1.56 7.82 13.91 -1.47 7.29 2.53 Total Real Estate 13.47 (41) 13.47 (41) 16.42 (17) 12.81 (54) 15.82 (79) 2.71 (76) -32.42 (36) 4.72 (39) N/A N/A NCREIF Fund Index-ODCE 12.40 (75) 12.40 (75) 13.04 (51) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 3.18 (52) 18.21 (56) 17.45 (57) IM U.S. Open End Private Real Estate(SA+CF)Median 12.63 12.63 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. \ 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 n u7�7 Parenthesized number represents pertinent peer group ranking:1-100,best to worst 22 [ BOGLAl ll�l `' GROUP. Comparative Performance Fiscal Year Returns Total Fund As of September 30,2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 FYTD To To To To To To To To To Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Lateef Asset Mgmt.Equity N/A N/A N/A 33.21 (8) -1.17 (75) 11.93 (43) 0.53 (23) -15.13 (16) N/A N/A Russell 1000 Growth Index 19.15 (38) 19.15 (38) 19.27 (66) 29.19 (37) 3.78 (30) 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 17.98 17.98 20.48 27.47 1.30 11.28 -3.01 -20.41 20.40 6.80 RBC Global(Voyageur) 10.08 (9) 10.08 (9) 27.54 (15) 24.74 (3) -8.75 (55) 11.69 (14) 11.87 (21) N/A N/A N/A MSCI EAFE Index 4.70 (64) 4.70 (64) 24.29 (40) 14.33 (55) -8.94 (57) 3.71 (66) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity(SA+CF)Median 5.76 5.76 22.79 15.33 -8.41 5.02 6.20 -27.36 23.91 20.94 Vanguard Total Stock Market(VITSX) 17.77 (24) 17.77 (24) N/A N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index Hybrid 17.77 (24) 17.77 (24) 21.60 (60) 30.28 (16) 0.71 (20) 11.16 (27) -6.03 (61) -21.19 (30) 16.98 (47) 10.38 (31) IM U.S. Multi-Cap Core Equity(MF)Median 15.30 15.30 22.82 25.66 -2.22 9.38 -4.81 -22.95 16.71 9.28 Galliard Core Fixed Income 3.15 (37) 3.15 (37) -0.64 (75) 5.82 (45) 4.16 (25) 9.63 (17) 12.08 (38) -1.68 (95) N/A N/A Barclays Intermediate Aggregate Index 2.74 (60) 2.74 (60) -0.71 (77) 4.31 (85) 4.22 (20) 7.52 (77) 9.69 (82) 4.16 (35) 5.33 (69) 3.84 (60) IM U.S. Intermediate Duration(SA+CF)Median 2.87 2.87 -0.27 5.58 3.58 8.27 11.50 3.21 5.49 3.92 Galliard TIPS 0.59 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A N/A Barclays U.S.TIPS 1-10 Year 0.61 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Templeton Global Bond Fund(TGBAX) 6.33 (13) 6.33 (13) 3.54 (3) N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -0.07 (97) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 5.90 (6) 8.69 (30) 2.23 (64) IM Global Fixed Income(MF)Median 3.63 3.63 -1.52 7.34 1.56 7.82 13.91 -1.47 7.29 2.53 American Core Realty Fund 12.49 (72) 12.49 (72) 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 12.40 (75) 12.40 (75) 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 12.63 12.63 13.09 12.90 16.62 6.09 -35.27 3.47 18.53 18.17 Intercontinental 14.10 (37) 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (80) N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE 12.40 (75) 12.40 (75) 13.04 (51) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 3.18 (52) 18.21 (56) 17.45 (57) IM U.S. Open End Private Real Estate(SA+CF)Median 12.63 12.63 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. INN\ 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 n u7�7 Parenthesized number represents pertinent peer group ranking:1-100,best to worst 23 [ BOGLAl ll�l `' GROUP. Performance Review Total Fund (Gross) As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Fund(Gross) 36,503 - 849 -503 -24 -17 59 -430 36,438 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Fund(Gross) 31,811 - 2,879 -1,983 -113 -69 574 3,338 36,438 Peer Group Analysis-All Public Plans-Total Fund Cummulative Performance 20.00 - $300.00 • O 14.00 • 0 $250.00 • 0 0 0 0 0 O O $ 8.39 ■ 8.00 � $209.74 $200.00 - w K 2.00 $150.00 -4.00 • -10.00 $100.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR O Total Fund(Gross) -1.02 (45) 12.21 (9) 12.21 (9) 14.25 (3) 16.08 (4) 11.70 (6) 11.64 (5) $50.00 I I I I I I I I I O Total Fund Policy -0.64 (23) 11.38 (22) 11.38 (22) 13.20 (9) 15.29 (9) 11.96 (5) 11.39 (9) 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 9/14 Median -1.14 10.05 10.05 11.32 13.35 10.02 10.08 Total Fund(Gross) - Total Fund Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total Fund(Gross) 3.24 (79) 2.10 (23) 7.55 (3) 5.10 (43) 1.27 (4) 7.28 (4) Total Fund Policy 3.90 (32) 1.69 (52) 6.10 (31) 5.46 (26) 0.91 (12) 6.60 (12) All Public Plans-Total Fund Median 3.64 1.72 5.60 4.91 0.08 5.45 THE 24 BOGDAHN '� GROUP. Performance Review Total Fund (Gross) As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 0.00 060009 20.0 Over c Performance X • co N w 25.00 • 8 0 0 0 8 0 N ° 10.0 .,�e% i Y 0000 X00 a 0 v a v ° 50.00 = 0.0 _ a o 0 u E 75.00 0000 :°. o -10.0 Under 'Ti Performance re I I I I I I r 1 1 100.00 1 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 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 11 (55%) 3 (15%) 6 (30%) 0 (0%) Earliest Date X Latest Date • Total Fund Policy 20 10 (50%) 8 (40%) 2 (10%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 16.91 11.96 16.02 0 11.44 - O 0 15.13 0 10.92 r 14.24 r 10.40 v v re re 13.35 ■ 9.88 12.46 1 1 1 1 9.36 - 1 1 1 5.98 6.21 6.44 6.67 6.90 7.13 7.36 7.59 8.84 9.10 9.36 9.62 9.88 10.14 10.40 10.66 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Fund(Gross) 16.08 7.38 • Total Fund(Gross) 11.64 10.32 O Total Fund Policy 15.29 6.36 0 Total Fund Policy 11.39 9.31 Median 13.35 6.19 Median 10.08 9.14 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Fund(Gross) 1.77 108.72 168.67 -1.19 0.43 2.08 1.13 2.00 Total Fund Policy 0.00 100.00 100.00 0.00 2.30 1.00 1.17 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund(Gross) 1.85 106.69 117.99 -0.74 0.18 1.13 1.10 6.04 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 5.24 Th THE 25 [ BOGDAHN `� GROUP. Performance Review Total Domestic Equity As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Domestic Equity 16,781 - - - - - - -1 16,780 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Domestic Equity 16,833 -2,881 - - - - 234 2,594 16,780 Peer Group Analysis-IM U.S. Large Cap Core Equity(SA+CF) Cumulative Performance 40.00 - $300.00 $250.00 • 30.00 $225.92 IIII $200.00 • $196.19 20.00 • • E C' 0 C' 0 mIM C' = $150.00 re 10.00 $100.00 - 0.00 O O $50.00 - -10.00 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 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 9/14 O Total Domestic Equity -0.01 (74) 17.58 (69) 17.58 (69) 19.69 (56) 22.33 (65) 15.34 (82) 15.11 (65) O Total Domestic Equity Policy 0.01 (73) 17.76 (67) 17.76 (67) 19.66 (57) 23.08 (55) 17.01 (59) 15.78 (52) - Total Domestic Equity Median 0.91 19.25 19.25 20.10 23.27 17.26 15.83 Total Domestic Equity Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total Domestic Equity 4.86 (50) 1.85 (62) 10.11 (62) 6.29 (41) 2.77 (51) 11.15 (37) Total Domestic Equity Policy 4.87 (49) 1.97 (56) 10.10 (62) 6.35 (38) 2.69 (53) 11.07 (39) IM U.S.Large Cap Core Equity(SA+CF)Median 4.83 2.06 10.44 5.99 2.82 10.69 THE 26 BOGDAHN Li,' GROUP Performance Review Total Domestic Equity As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 44.0 y 0.00 ° Over c 0 . f0 33 0 Performance w 0 25.00 • 22.0 O O Q e 0 o OO O 0O 00000 O 4. O OOO 50.00 • 0w 110 v 0 O OO 0 E a O O O O O O O 0 0.0 E 75.00 O O O O O O }o • Under w i F -11.0 Performance 100.00 i i i i �� i r -10.0 0.0 10.0 20.0 30.0 40.0 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 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%) 8 (40%) 7 (35%) 3 (15%) Earliest Date X Latest Date p Total Domestic Equity Policy 20 0 (0%) 9 (45%) 11 (55%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 23.68 16.20 23.36 15.90 0 23.04 1 0 ` 15.60 r 22.72 JI 15.30 re re«', 0 22.40 0 15.00 22.08 I I 14.70 9.88 10.07 10.26 10.45 10.64 10.83 11.02 11.21 14.40 14.60 14.80 15.00 15.20 15.40 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Equity 22.33 11.00 0 Total Domestic Equity 15.11 15.28 O Total Domestic Equity Policy 23.08 10.08 0 Total Domestic Equity Policy 15.78 14.70 Median 23.27 10.44 Median 15.83 14.67 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Domestic Equity 2.16 101.18 112.14 -2.71 -0.22 1.72 1.11 5.51 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 1.97 1.00 -.� Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 2.29 100.67 105.18 -1.21 -0.20 1.04 1.05 8.36 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 7.91 THE 27 ( BOGDAHN GROUP. Performance Review Vanguard Total Stock Market(VITSX) As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Vanguard Total Stock Market(VITSX) 16,781 - - - - - - -1 16,780 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Vanguard Total Stock Market(VITSX) 16,833 -2,881 - - - - 234 2,594 16,780 Peer Group Analysis-IM U.S. Multi-Cap Core Equity(MF) Cumulative Performance 40.00 $136.00 $128.60 30.00 $128.00 • O 20.00 0 0 • • 0 $120.00 • w 1 0.00 a $112.00 - re 0.00 • • $104.00 - ■ -10.00 $96.00 - -20.00 $88.00 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/13 6/13 9/13 12/13 3/14 6/14 9/14 • Vanguard Total Stock Market(VITSX) -0.01 (29) 17.77 (24) 17.77 (24) N/A N/A N/A N/A O Vanguard Total Stock Market Index Hybrid -0.02 (30) 17.77 (24) 17.77 (24) 19.67 (45) 23.11 (31) 17.08 (20) 15.87 (18) - Vanguard Total Stock Market(VITSX) Median -0.96 15.30 15.30 19.46 21.71 15.31 14.20 - Vanguard Total Stock Market Index Hybrid Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Vanguard Total Stock Market(VITSX) 4.86 (32) 2.04 (45) 10.08 (32) 6.29 (63) 2.77 (44) N/A Vanguard Total Stock Market Index Hybrid 4.87 (31) 2.04 (45) 10.09 (31) 6.29 (62) 2.81 (43) 11.06 (46) IM U.S.Multi-Cap Core Equity(MF)Median 4.37 1.93 9.48 6.81 2.59 10.98 Th THE 2g Li-_....0 BOGDAHN GROUP. Page Intentionally Left Blank 29 [P BOGDAHN GROUP. Performance Review Total International Equity As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total International Equity 5,864 14 - - -14 -1 14 -472 5,406 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total International Equity 4,914 51 - - -51 -4 172 323 5,406 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance 28.00 - $300.00 20.00 0 0 $250.00 x,2.6.66 12.00 0 0 • 0 0 0 $200.00 '6.88 E MIE Cill w4.00 0 0 re /\ $150.00 / / -4.00 _ O 0 $100.00 -12.00 \e"'" $50.00 -20.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total International Equity -7.80 (93) 10.08 (9) 10.08 (9) 18.49 (8) 20.54 (4) 12.43 (5) 12.28 (2) $0.00 I I I I - • MSCI EAFE Index -5.83 (61) 4.70 (64) 4.70 (64) 14.08 (47) 14.16 (44) 7.89 (54) 7.04 (63) 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 9/14 Median -5.68 5.76 5.76 13.81 13.60 8.21 7.70 Total International Equity - MSCI EAFE Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total International Equity 2.57 (83) 4.15 (5) 11.77 (1) 8.88 (79) 0.69 (33) 8.79 (2) MSCI EAFE Index 4.34 (44) 0.77 (61) 5.75 (59) 11.61 (36) -0.73 (61) 5.23 (34) IM International Large Cap Value Equity(SA+CF)Median 4.13 1.14 6.13 10.79 -0.03 4.24 THE Li-_....0 BOGDAHN so GROUP. Performance Review Total International Equity As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 0.00 00 0000 0000 00 ✓ 40.0 Over c '_ Performance f0 Cr O w 25.00 0 A20.0 � _,y�JO X .c o (rte" o 50.00 • 0 0 0 0 0 0 0 o.o 0 a 0 O 0 0 0 0 0 0 ;; + E 75.00 0 00116100 Y -20.0 Under w 0 0 0 ;? Performance re I r I I I I I 100.00 T -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 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 13 (65%) 2 (10%) 2 (10%) 3 (15%) Earliest Date X Latest Date O MSCI EAFE Index 20 0 (0%) 5 (25%) 13 (65%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 24.00 14.00 21.00 0 ^ 12.00 0 18.00 E 10.00 o o ce 15.00 0 Ire 8.00 0 12.00 I I I 6.00 11.20 11.90 12.60 13.30 14.00 14.70 15.75 16.38 17.01 17.64 18.27 18.90 19.53 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total International Equity 20.54 14.16 • Total International Equity 12.28 18.96 O MSCI EAFE Index 14.16 11.13 • MSCI EAFE Index 7.04 16.26 Median 13.60 11.41 Median 7.70 16.21 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total International Equity 5.56 118.73 94.83 5.50 1.03 1.29 1.02 8.65 MSCI EAFE Index 0.00 100.00 100.00 0.00 1.00 8.40 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 6.11 116.61 96.14 4.78 0.84 0.72 1.06 11.27 MSCI EAFE Index 0.00 100.00 100.00 0.00 1.00 10.83 THE 31 ( BOGDAHN `� GROUP. Performance Review RBC Global (Voyageur) As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 RBC Global(Voyageur) 5,864 14 - - -14 -1 14 -472 5,406 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 RBC Global(Voyageur) 4,914 51 - - -51 -4 172 323 5,406 Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance 28.00 $175.00 20.00 0 $150.00 O $ ,4.36 12.00 0 0 $125.00 0 0 E 13.69 0 $100.00 \ w 4.00 re $75.00 -4.00 O 0 $50.00 -12.00 $25.00 - -20.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global(Voyageur) -7.80 (93) 10.08 (9) 10.08 (9) 18.49 (8) 20.54 (4) 12.43 (5) 12.28 (2) $0.00 • MSCI EAFE Index -5.83 (61) 4.70 (64) 4.70 (64) 14.08 (47) 14.16 (44) 7.89 (54) 7.04 (63) 12/07 12/08 12/09 12/10 12/11 12/12 12/13 9/14 Median -5.68 5.76 5.76 13.81 13.60 8.21 7.70 RBC Global(Voyageur) MSCI EAFE Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 RBC Global(Voyageur) 2.57 (83) 4.15 (5) 11.77 (1) 8.88 (79) 0.69 (33) 8.79 (2) MSCI EAFE Index 4.34 (44) 0.77 (61) 5.75 (59) 11.61 (36) -0.73 (61) 5.23 (34) IM International Large Cap Value Equity(SA+CF)Median 4.13 1.14 6.13 10.79 -0.03 4.24 THE 32 , Li-_....0 BOGDAHN GROUP. Performance Review RBC Global (Voyageur) As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 40.0 0.00 O Q 0 0 0 0 0 0 0 0 0 0 Over c Performance f0 K 30.0 ° w 25.00 0 T zo.o X 0 0 0 0 0 0 0 o Q u 50.00 • a 0 O O '-, 10.0 0 ° ° 75.00 0 0 0 0 0 0 0 0 0 0 0 0 a cp r 3 0.0 il O Under 100.00 - ce• -10.0 Performance 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 1 i i i 1 1 1 1 1 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Total Period 5-25 25-Median Median-75 75-95 MSCI EAFE Index(%) Count Count Count Count • RBC Global(Voyageur) 16 13 (81%) 2 (13%) 1 (6%) 0 (0%) • Over Performance Earliest Date X Latest Date p MSCI EAFE Index 20 0 (0%) 5 (25%) 13 (65%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 24.00 14.00 21.00 0 ^ 12.00 0 18.00 E 10.00 o o ce 15.00 0 Ire 8.00 0 12.00 1 1 1 6.00 11.20 11.90 12.60 13.30 14.00 14.70 15.75 16.38 17.01 17.64 18.27 18.90 19.53 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • RBC Global(Voyageur) 20.54 14.16 0 RBC Global(Voyageur) 12.28 18.96 O MSCI EAFE Index 14.16 11.13 0 MSCI EAFE Index 7.04 16.26 Median 13.60 11.41 Median 7.70 16.21 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture RBC Global(Voyageur) 5.56 118.73 94.83 5.50 1.03 1.29 1.02 8.65 MSCI EAFE Index 100.00 100.01 u.t„_ 1.00 8.40 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global(Voyageur) 6.11 116.61 96.14 4.78 0.84 0.72 1.06 11.27 MSCI EAFE Index 100.00 100.00 0.00 1.00 10.83 THE 33 BOGDAHN L.-, GROUP Performance Review Total Domestic Fixed Income Composite As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Domestic Fixed Income Composite 5,812 - - - -3 - 3 -22 5,789 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Domestic Fixed Income Composite 5,652 - - - -10 -1 11 136 5,789 Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance 8.00 $250.00 6.00 $200.00 §1 @:5$ 4.00 • w O C' • • $150.00 re 2.00 MIN 0.00 $100.00 -2.00 $50.00 i QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 9/14 O Total Domestic Fixed Income Composite -0.33 (100) 2.61 (66) 2.61 (66) 0.64 (88) 2.35 (70) 2.93 (45) 4.17 (37) O Total Domestic Fixed Policy 0.03 (37) 2.74 (60) 2.74 (60) 1.00 (76) 2.09 (80) 2.62 (68) 3.58 (74) - Total Domestic Fixed Income Composite Median 0.00 2.87 2.87 1.26 2.70 2.88 3.95 - Total Domestic Fixed Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total Domestic Fixed Income Composite 1.91 (10) 1.37 (32) -0.34 (97) 0.66 (65) -2.72 (99) 0.30 (61) Total Domestic Fixed Policy 1.62 (26) 1.20 (51) -0.14 (92) 0.76 (41) -1.78 (50) 0.15 (91) IM U.S.Intermediate Duration(SA+CF)Median 1.40 1.20 0.20 0.72 -1.79 0.34 THE 34 IrLi,' BOGDAHN GROUP Performance Review Total Domestic Fixed Income Composite As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years E 12.0 . 0.00 o Over c U Performance f0 E 9.0 - v 25.00 0 ° ° ° ° ° o o 0 0 ° J - 6.0 - O c a 50.00 • I 0 x 3.0 - , .(,1 + E 75.00 ° 0 °O O° 8 e 0 ° 0 0 0 0 0 0 ° 0 0 ° o 0- Under 'Ti 0 j v Performance re • 0.0 I I I I I I I I 100.00 r 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 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 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%) 7(35%) 4(20%) Earliest Date X Latest Date p Total Domestic Fixed Policy 20 0(0%) 0(0%) 12(60%) 8(40%) Peer Group Scattergram-3 Years -mill Peer Group Scattergram-5 Years 2.80 4.40 r..2.60 r..4.20 0 X2.40 e X4.00 r 2.20 r 3.80 K Q re Q 2.00 3.60 1.80 1 1 3.40 1 1 1 1.60 1.80 2.00 2.20 2.40 2.60 2.07 2.16 2.25 2.34 2.43 2.52 2.61 2.70 2.79 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Domestic Fixed Income Composite 2.35 2.48 0 Total Domestic Fixed Income Composite 4.17 2.64 O Total Domestic Fixed Policy 2.09 1.78 0 Total Domestic Fixed Policy 3.58 2.19 Median 2.70 1.88 Median 3.95 2.34 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Domestic Fixed Income Composite 0.70 115.81 119.49 -0.09 0.38 0.98 1.17 1.50 Total Domestic Fixed Policy 0.00 100.00 100.00 0.00 1.15 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 0.83 113.15 106.74 0.30 0.69 1.59 1.08 1.40 Total Domestic Fixed Policy 0.00 100.00 100.00 1.00 1.18 MTHE 35 [� BOGDAHN `� GROUP. Performance Review Galliard Core Fixed Income As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Galliard Core Fixed Income 4,599 - - - - - - 4 4,603 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Galliard Core Fixed Income 4,466 - - - -3 - - 140 4,603 Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance 8.00 $150.00 6.00 $136:04 $135.00 0 4.00 E 0 = 0 0 0 0 $120.00 re 2.00 0 0.00 $105.00 0 -2.00 $90.00 I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 • Galliard Core Fixed Income 0.09 (25) 3.15 (37) 3.15 (37) 1.23 (53) 2.74 (48) 3.09 (37) 4.37 (25) • Barclays Intermediate Aggregate Index 0.03 (37) 2.74 (60) 2.74 (60) 1.00 (76) 2.09 (80) 2.62 (68) 3.58 (74) - Galliard Core Fixed Income Median 0.00 2.87 2.87 1.26 2.70 2.88 3.95 - Barclays Intermediate Aggregate Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Galliard Core Fixed Income 1.65 (22) 1.43 (28) -0.05 (83) 0.58 (79) -1.95 (75) 0.28 (64) Barclays Intermediate Aggregate Index 1.62 (26) 1.20 (51) -0.14 (92) 0.76 (41) -1.78 (50) 0.15 (91) IM U.S.Intermediate Duration(SA+CF)Median 1.40 1.20 0.20 0.72 -1.79 0.34 THE 36 BOGDAHN Li,' GROUP Performance Review Galliard Core Fixed Income As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years w 12.0 0.00 E Over c 0 u 10.0 - Performance a • v 25.00 i 0 O 0 0 8.0 - a 0 0 0 LL 6.0 - • 50.00 • 0 O 0 O 0 0 v `w U 4.0 - ` •/•ll E 75.00 0 0 O O O 0 0 0 0 0 2.0 - Under v O O O O O O f0 Performance re • 0.0 I(- 1 1 r I I I 1 1 100.00 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 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 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 17 6(35%) 9(53%) 0(0%) 2(12%) Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0(0%) 0(0%) 12(60%) 8(40%) Peer Group Scattergram-3 Years M Peer Group Scattergram-5 Years 3.00 4.68 2.70 0 4.42 0 E 2.40 • 4.16 r 3.90 w v X2.10 - 0 re 3.64 ■ 0 1.80 1 1 1 3.38 1 1 1 1.70 1.75 1.80 1.85 1.90 1.95 2.00 2.05 2.10 2.10 2.16 2.22 2.28 2.34 2.40 2.46 2.52 2.58 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 2.74 2.03 • Galliard Core Fixed Income 4.37 2.48 • Barclays Intermediate Aggregate Index 2.09 1.78 • Barclays Intermediate Aggregate Index 3.58 2.19 Median 2.70 1.88 Median 3.95 2.34 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Galliard Core Fixed Income 0.39 113.03 92.45 0.55 1.61 1.30 1.04 1.18 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 .15 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.67 110.28 86.21 0.75 1.14 1.81 1.00 1.19 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 1.00 1.18 THE 37 ( BOGDAHN `� GROUP. Performance Review Galliard TIPS As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Galliard TIPS 1,213 - - - -3 - 3 -26 1,186 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Galliard TIPS 1,186 - - - -7 -1 11 -4 1,186 Peer Group Analysis-IM U.S.TIPS(SA+CF) Cumulative Performance 8.00 $150.00 5.00 $135.00 2.00 O O E w 0 0 0 0 OO $120.00 re -1.00 O O $105.00 -4.00 -7.00 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 • Galliard TIPS -1.94 (23) 0.59 (85) 0.59 (85) -1.58 (23) 0.89 (90) 2.32 (95) 3.29 (93) O Barclays U.S.TIPS 1-10 Year -1.99 (35) 0.61 (80) 0.61 (80) -1.67 (31) 0.92 (87) 2.46 (83) 3.43 (89) - Galliard TIPS Median -2.03 1.53 1.53 -1.92 1.33 3.40 4.54 Barclays U.S.TIPS 1-10 Year Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Galliard TIPS 2.90 1.17 -1.46 0.97 -5.53 0.35 Barclays U.S.TIPS 1-10 Year 0.92 -5.52 0.33 THE 38 r BOGDAHN L GROUP. Performance Review Galliard TIPS As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 10.0 O - y 0.00 ver c Performance co re r., 8.0 - • w 25.00 w 6.0 ■ c a F 50.00 mMili 4.0 - `w -a a .`_° E 75.00 2.0 r O A \� e O e 8 8 6 e 8 6 © e e e o 0 6 ® o e o 0.0 - Under 100.00 1 -2.0 - Performance 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 I I I I I I II I I I -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Total Period 5-25 25-Median Median-75 75-95 Barclays U.S.TIPS 1-10 Year(%) Count Count Count Count • Galliard TIPS 17 0 (0%) 0 (0%) 0 (0%) 17(100%) • Under Performance Earliest Date X Latest Date • Barclays U.S.TIPS 1-10 Year 20 0 (0%) 0 (0%) 2 (10%) 18(90%) Peer Group Scattergram-3 Years , Peer Group Scattergram-5 Years 1.60 - 5.04 1.40 - ....,4.62 X1.20 - ---,_ 4.20 r 3.78 w v re 1.00 re ,(1 11; 3.36 �/ 0.80 1 1 1 1 2.94 1 1 1 1 1 4.08 4.32 4.56 4.80 5.04 5.28 5.52 5.76 6.00 3.51 3.78 4.05 4.32 4.59 4.86 5.13 5.40 5.67 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Galliard TIPS 0.89 4.31 • Galliard TIPS 3.29 3.81 O Barclays U.S.TIPS 1-10 Year 0.92 4.32 0 Barclays U.S.TIPS 1-10 Year 3.43 3.82 Median 1.33 5.62 Median 4.54 5.22 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Galliard TIPS 1.01 98.52 98.86 -0.04 -0.03 0.24 1.01 2.81 Barclays U.S.TIPS 1-10 Year 100.00 100.00 0.00 N/A 0.25 1.00 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.04 97.35 98.33 -0.09 -0.12 0.85 0.99 2.40 Barclays U.S.TIPS 1-10 Year 100.00 100.00 0.91 2.. Th THE /�I 39 Ir BOGDAHN 4,1 GROUP. Performance Review Total Global Fixed Income Composite As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Global Fixed Income Composite 1,371 -10 - - - - 10 -9 1,362 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Global Fixed Income Composite 986 299 - - - - 47 29 1,362 Peer Group Analysis-IM Global Fixed Income(MF) mll Cumulative Performance 12.00 $136.00 $128.00 • 8.00 $123.11 0 • 0 $120.00 • 4.00 $112.00 - K 0.00 C Q O $104.00 ,'8.59 -4.00 $96.00 - -8.00 I $88.00 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/11 6/12 12/12 6/13 12/13 6/14 9/14 O Total Global Fixed Income Composite 0.06 (15) 6.31 (13) 6.31 (13) 4.91 (4) N/A N/A N/A O Total Global Fixed Income Policy -3.78 (91) -0.07 (97) -0.07 (97) -2.36 (92) N/A N/A N/A - Total Global Fixed Income Composite Median -1.59 3.63 3.63 1.52 3.31 2.69 3.73 - Total Global Fixed Income Policy Comparative Performance 11 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total Global Fixed Income Composite 2.68 (40) 0.74 (96) 2.72 (2) 1.09 (47) -2.72 (31) 1.42 (7) Total Global Fixed Income Policy 2.27 (53) 2.66 (43) -1.09 (91) 2.88 (3) -2.97 (38) -2.77 (99) IM Global Fixed Income(MF)Median 2.38 2.49 0.70 0.93 -3.29 -0.48 THE 40 (141,---.0 BOGDAHN GROUP. Performance Review Templeton Global Bond Fund (TGBAX) As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Templeton Global Bond Fund(TGBAX) 1,371 -10 - - - - 10 -9 1,362 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Templeton Global Bond Fund(TGBAX) 986 299 - - - - 47 29 1,362 Peer Group Analysis-IM Global Fixed Income(MF) Cumulative Performance 12.00 $136.00 $128.00 • 8.00 0 • • $123.15 $120.00 4.00 E e K $112.00 Q 0.00 0 mill IP 0 $104.00 - -4.00 O I ,'8.59 $96.00 - -8.00 - $88.00 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/11 6/12 12/12 6/13 12/13 6/14 9/14 • Templeton Global Bond Fund(TGBAX) 0.06 (15) 6.33 (13) 6.33 (13) 4.93 (4) N/A N/A N/A O Citigroup World Government Bond -3.78 (91) -0.07 (97) -0.07 (97) -2.36 (92) -0.51 (97) 0.74 (89) 1.58 (96) - Templeton Global Bond Fund(TGBAX) Median -1.59 3.63 3.63 1.52 3.31 2.69 3.73 - Citigroup World Government Bond Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Templeton Global Bond Fund(TGBAX) 2.68 (40) 0.75 (95) 2.72 (2) 1.09 (47) -2.72 (31) 1.42 (7) Citigroup World Government Bond 2.27 (53) 2.66 (43) -1.09 (91) 2.88 (3) -2.97 (38) -2.77 (99) IM Global Fixed Income(MF)Median 2.38 2.49 0.70 0.93 -3.29 -0.48 THE 41 (141,---.0 GROUP. GROUP Performance Review Total Real Estate As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Real Estate 2,906 -10 - - -6 - 32 75 2,996 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Total Real Estate 2,717 -38 - - -48 - 109 255 2,996 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.00 $140.00 $125.45 20.00 ■ $120.00 9.96 14.00 O • • • $100.00 E 0 0 1=f. 0 IIM . IIIIV w re 8.00 $80.00 rnm 2.00 $60.00 -4.00 - $40.00 1 I 1- I Tr. QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 • Total Real Estate 3.67 (25) 13.47 (41) 13.47 (41) 14.93 (32) 14.22 (34) 14.62 (36) 12.13 (63) • NCREIF Fund Index-ODCE 3.24 (52) 12.40 (75) 12.40 (75) 12.72 (60) 12.34 (71) 13.80 (74) 12.40 (47) - Total Real Estate Median 3.27 12.63 12.63 12.97 13.24 14.11 12.20 - NCREIF Fund Index-ODCE Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Total Real Estate 2.52 (81) 2.26 (82) 4.40 (13) 3.59 (48) 4.06 (47) 2.70 (61) NCREIF Fund Index-ODCE 2.93 (57) 2.52 (66) 3.17 (53) 3.56 (50) 3.86 (52) 2.68 (61) IM U.S.Open End Private Real Estate(SA+CF)Median 3.18 2.87 3.23 3.54 3.88 3.14 THE 42 , Li-_....0 BOGDAHN GROUP. Performance Review Total Real Estate As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 30.0 y 0.00 Over c Performance co w 20.0 re :: Y11�e w 25.00 W10.0 = 009gg20 o 0000 0 50.00 • O l_J O ,-N O Q e O w 0.0 a • O O 0 0 0 p p 0 0 0 I- 75.00 0 10.0 'Ti F Under Performance re -20.0 I T r 100.00 I Ir-20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 NCREIF Fund Index-ODCE (%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • Total Real Estate 17 0 (0%) 9 (53%) 7 (41%) 1 (6%) Earliest Date X Latest Date • NCREIF Fund Index-ODCE 20 0 (0%) 11 (55%) 9 (45%) 0 (0%) Peer Group Scattergram-3 Years 1. Peer Group Scattergram-5 Years 15.18 - 12.50 14.52 0 12.40 O 13.86 = 12.30 r 13.20 12.20 re re r 0 12.54 • 12.10 11.88 I I I I 12.00 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 3.40 3.57 3.74 3.91 4.08 4.25 4.42 4.59 4.76 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Total Real Estate 14.22 1.69 • Total Real Estate 12.13 4.03 O NCREIF Fund Index-ODCE 12.34 0.84 0 NCREIF Fund Index-ODCE 12.40 3.60 Median 13.24 1.33 Median 12.20 4.50 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Total Real Estate 1.68 114.54 N/A 7.63 1.02 7.99 0.52 0.00 NCREIF Fund Index-ODCE 0.00 100.00 -__ 13.84 1.00 �U Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 1.89 99.37 121.39 -0.11 -0.12 2.88 0.99 1.91 NCREIF Fund Index-ODCE 0.00 100.00 3.29 Th THE /�I 43 Ir BOGDAHN 4,1 GROUP. Performance Review American Core Realty Fund As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 American Core Realty Fund 809 -10 - - -2 - 12 15 824 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 American Core Realty Fund 777 -38 - - -9 - 40 53 824 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance 26.00 $175.00 20.00 $150.00 $145.55 14.00 $125.00 $118.91 O O MINIM I • O MIN II w re 8.00 $100.00 - v e O 2.00 $75.00 - -4.00 - $50.00 1 I I I I I l--r QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 • American Core Realty Fund 3.36 (46) 12.49 (72) 12.49 (72) 12.38 (72) 12.11 (73) 13.09 (82) 10.94 (100) O American Core Realty Policy 3.24 (52) 12.40 (75) 12.40 (75) 12.72 (60) 12.34 (71) 13.80 (74) 12.16 (62) - American Core Realty Fund Median 3.27 12.63 12.63 12.97 13.24 14.11 12.20 American Core Realty Policy Comparative Performance . 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 American Core Realty Fund 2.80 (62) 3.20 (39) 2.59 (76) 3.40 (54) 3.36 (66) 2.49 (69) American Core Realty Policy 2.93 (57) 2.52 (66) 3.17 (53) 3.56 (50) 3.86 (52) 2.68 (61) IM U.S.Open End Private Real Estate(SA+CF)Median 3.18 2.87 3.23 3.54 3.88 3.14 THE 44 Li-_....0 BOGDAHN GROUP. Performance Review American Core Realty Fund As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years y o.o0 0 0 0 O O -o 18.0 Over c O Performance c O O• 12.0 w 25.00 J r LL - OO o 6.0 • v 50.00 O O • 0 o.o w a U -6.0 • • 75.00 O 0 Q 8 8 000 0 �• ' glJ ✓ -12.0 100.00 Under w -18.0 Performance 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 E I I I I I I I I I -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Total Period 5-25 25-Median Median-75 75-95 American Core Realty Policy(%) Count Count Count Count • American Core Realty Fund 17 0 (0%) 5 (29%) 6 (35%) 6 (35%) • Under Performance + Earliest Date X Latest Date p American Core Realty Policy 17 7 (41%) 1 (6%) 8 (47%) 1 (6%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 13.68 12.47 - 13.30 - r. 12.04 0 12.92 ^ 11.61 r 12.54 r 11.18 re re 12.16 • O 10.75 0 11.78 10.32 0.40 0.60 0.80 1.00 1.20 1.40 1.60 2.48 2.79 3.10 3.41 3.72 4.03 4.34 4.65 4.96 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • American Core Realty Fund 12.11 0.67 • American Core Realty Fund 10.94 3.76 O American Core Realty Policy 12.34 0.84 • American Core Realty Policy 12.16 2.89 Median 13.24 1.33 Median 12.20 4.50 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture American Core Realty Fund 0.65 98.14 N/A 5.51 -0.34 17.05 0.52 0.00 American Core Realty Policy 0.00 100.00 0.00 N/A 13.84 1.00 ...JO Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 1.37 94.44 200.36 -3.74 -0.80 2.80 1.23 1.91 American Core Realty Policy 0.00 100.00 100.00 0.00 i'lft THE lr 7 45 BOGDAHN 4,, GROUP. Performance Review Intercontinental As of September 30,2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 07/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Intercontinental 2,097 - - - -4 - 20 60 2,172 Financial Reconciliation October 1,2013 To September 30,2014 Market Value Net Management Other Apprec./ Market Value 10/01/2013 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2014 Intercontinental 1,940 - - - -39 - 69 202 2,172 Peer Group Analysis-IM U.S.Open End Private Real Estate(SA+CF) Cumulative Performance • 26.00 $200.00 20.00 $175.00 $176.92 167.70 • • • 14.00 ° • $150.00 2 IIIIIIIIIIII` • j Mil' M re 8.00 $125.00 2.00 $100.00 -4.00 _I_ - $75.00 1 1 1 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 • Intercontinental 3.79 (19) 14.10 (37) 14.10 (37) 16.14 (25) 15.21 (28) 15.33 (33) N/A • NCREIF Fund Index-ODCE(VVV) 3.24 (52) 12.40 (75) 12.40 (75) 12.72 (60) 12.34 (71) 13.80 (74) 12.40 (47) - Intercontinental Median 3.27 12.63 12.63 12.97 13.24 14.11 12.20 - NCREIF Fund Index-ODCE(VW) Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Intercontinental 2.42 (88) 1.89 (85) 5.35 (3) 3.66 (43) 4.35 (29) 2.79 (59) NCREIF Fund Index-ODCE(VVV) 2.93 (57) 2.52 (66) 3.17 (53) 3.56 (50) 3.86 (52) 2.68 (61) IM U.S.Open End Private Real Estate(SA+CF)Median 3.18 2.87 3.23 3.54 3.88 3.14 THE 46 Li-_....0 BOGDAHN GROUP. Performance Review Intercontinental As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years • 0.00 Over • c x.16.0 Performance co . _ 25.00 Q O O Q }015.0 - c O 0000 ° 0 0 O 0 w u 50.00 •• Q O O O r 14.0 Q - a O O O O c O � E 75.00 2, 13.0 I75- w c re Under 100.00 1 i__I 12.0 - Performance 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 1 1 1 1 1 1 1 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5 Total Period 5-25 25-Median Median-75 75-95 NCREIF Fund Index-ODCE(VW)(%) Count Count Count Count • Intercontinental 5 1 (20%) 4(80%) 0(0%) 0 (0%) • Over Performance + Earliest Date X Latest Date • NCREIF Fund Index-ODCE(VVV) 20 0(0%) 11 (55%) 9(45%) 0 (0%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 16.66 12.46 15.68 12.39 0 0 14.70 = 12.32 r 13.72 r 12.25 v v re re 12.74 0 12.18 11.76 12.11 1 1 1 1 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.40 3.57 3.74 3.91 4.08 4.25 4.42 4.59 4.76 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intercontinental 15.21 2.49 • Intercontinental N/A N/A • NCREIF Fund Index-ODCE(VVV) 12.34 0.84 0 NCREIF Fund Index-ODCE(VVV) 12.40 3.60 Median 13.24 1.33 Median 12.20 4.50 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Intercontinental 2.48 122.26 N/A 8.67 1.06 5.80 0.51 0.00 NCREIF Fund Index-ODCE(VVV) 0.00 100.00 N/A 0.00 13.84 1.00 ,..,.� Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index-ODCE(VVV) 0.00 100.00 100.00 0.00 1.56 THE 47 !!!r� BOGDAHN GROUP. Page Intentionally Left Blank 48 [P BOGDAHN GROUP. Manager Performance Reviews [Hk: 49 BOGDAHN GROUP. Rolling Percentile Ranking International Equity 20 Quarters Rolling Periods As of September 30,2014 Rolling Percentile Ranking vs.IM International Large Cap Value Equity(SA+CF) 0.0 25.0 Y c a fY ill N cp • 50.0 w a c c d il la /\A ------.... � V 75.0 100.0 i 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 9/14 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count - International Equity 38 19 (50%) 5 (13%) 9 (24%) 5 (13%) - MSCI EAFE Index 38 0 (0%) 0 (0%) 21 (55%) 17 (45%) Manager composite returns used for chart population. IIIIN\ THE 50 ` BOGDAHN � GROUP. Relative Performance International Equity Since Inception Ending September 30,2014 Relative Performance 18.0 15.0 12.0 9.0 6.0 /' 3.0 '. i'g' 1 1 I III I Hil 1 II� III I.I I.I III ,_ .I II I_ _ I I I .I _II II I II 1 . _ I III ..II I _ I,II 0.0 II I I II I .I II I I� III I ' III � I I 1 Il I I 11 11 I .1 1 1' I III I I I Ill I ce -3.0 -6.0 -9.0 -12.0 -15.0 -18.0 -21.0 - 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 9/14 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. THE 51 [ BOGDAHN `� GROUP. Performance Review RBC Global Asset Management As of September 30,2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To September 30,2014 No data found. Peer Group Analysis-IM International Large Cap Value Equity(SA+CF) Cumulative Performance 28.00 $750.00 20.00 0 0 $600.00 0 0 4' .36 12.00 O O $450.00 E 0 O 4.00 0 0 re $300.00 -4.00 $ 2.19 0 0 $150.00 W r -12.00 $0.00 - -20.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR O International Equity -7.81 (93) 10.01 (10) 10.01 (10) 18.41 (8) 20.46 (4) 12.75 (4) 12.46 (2) ($150.00) O MSCI EAFE Index -5.83 (61) 4.70 (64) 4.70 (64) 14.08 (47) 14.16 (44) 7.89 (54) 7.04 (63) 6/98 3/00 12/01 9/03 6/05 3/07 12/08 9/10 6/12 9/14 Median -5.68 5.76 5.76 13.81 13.60 8.21 7.70 - International Equity - MSCI EAFE Index Comparative Performance M 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 International Equity 2.56 (83) 4.13 (5) 11.73 (1) 8.88 (79) 0.67 (34) 8.77 (2) MSCI EAFE Index 4.34 (44) 0.77 (61) 5.75 (59) 11.61 (36) -0.73 (61) 5.23 (34) IM International Large Cap Value Equity(SA+CF)Median 4.13 1.14 6.13 10.79 -0.03 4.24 P THE 52 L.......0 BOGDAHN GROUP. Performance Review RBC Global Asset Management As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 40.0 Over c 0.00 O Q Q Q O O Q Q Q Q 0 0 YPerformance Q re 0 w 25.00 Q 20.0 .c w Wc"nO 0 0 50.00 . OOOOO O 0 0 0 0.0 a Q O Q Q Q c t E 75.00 O O 0 8 0 Q Q Q -20.0 Under e O 0 MI Performance I r I I I I I 100.00 1 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 MSCI EAFE Index(%) Total Period 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Count Count Count Count • International Equity 20 14 (70%) 1 (5%) 2 (10%) 3 (15%) Earliest Date X Latest Date p MSCI EAFE Index 20 0 (0%) 5 (25%) 13 (65%) 2 (10%) Peer Group Scattergram-3 Years Peer Group Scattergram-5 Years 24.00 14.00 21.00 O 12.00 0 18.00 E 10.00 o o ce 15.00 0 Ire 8.00 O 12.00 I I I 6.00 I 11.20 11.90 12.60 13.30 14.00 14.70 15.18 15.84 16.50 17.16 17.82 18.48 19.14 19.80 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • International Equity 20.46 14.15 • International Equity 12.46 19.01 O MSCI EAFE Index 14.16 11.13 • MSCI EAFE Index 7.04 16.26 Median 13.60 11.41 Median 7.70 16.21 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture International Equity 5.55 118.56 95.01 5.43 1.01 1.29 1.02 8.65 MSCI EAFE Index 0.00 100.00 100.00 0.00 1.00 8.40 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture International Equity 5.98 117.46 96.48 4.93 0.89 0.73 1.06 11.32 MSCI EAFE Index 0.00 100.00 100.00 0.49 1.00 10.83 Th THE 53 Li-_....0 BOGDAHN GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30,2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To September 30,2014 No data found. Peer Group Analysis-IM U.S.Intermediate Duration (SA+CF) Cumulative Performance 8.00 $400.00 6.00 $300.00 $288.62 3.77 4.00 E O O • • • • • C' $200.00 re 2.00 =IN Ebb $100.00 0.00 :S -2.00 $0.00 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/95 12/97 3/00 6/02 9/04 12/06 3/09 6/11 9/14 • Intermediate Core 0.04 (36) 3.03 (43) 3.03 (43) 1.11 (69) 2.68 (51) 3.06 (37) 4.25 (34) • Barclays Intermediate Aggregate Index 0.03 (37) 2.74 (60) 2.74 (60) 1.00 (76) 2.09 (80) 2.62 (68) 3.58 (74) - Intermediate Core Median 0.00 2.87 2.87 1.26 2.70 2.88 3.95 - Barclays Intermediate Aggregate Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Intermediate Core 1.63 (24) 1.40 (30) -0.06 (87) 0.60 (74) -2.07 (85) 0.26 (73) Barclays Intermediate Aggregate Index 1.62 (26) 1.20 (51) -0.14 (92) 0.76 (41) -1.78 (50) 0.15 (91) IM U.S.Intermediate Duration(SA+CF)Median 1.40 1.20 0.20 0.72 -1.79 0.34 THE 54 C L---.0 BOGDAHN GROUP. Performance Review Galliard Capital Management(Intermediate Core) As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 12.0 0.00 Over c ---• 10.0 - Performance A re • 8.0 - a O w 25.00 O Q U O a c O O O O O O O O O w is 6.0 - 0 50.00 O v O + 0 a O e V 0 0 E 75.00 y 2.0 - Under 'Ti Q 0 Q Performance re 0.0 I(- I I I r I I I 1 1 100.00 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 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 Barclays Intermediate Aggregate Index(%) Total 5-25 25-Median Median-75 75-95 • Over Performance • Under Performance Period Count Count Count Count • Intermediate Core 20 5(25%) 9(45%) 5(25%) 1 (5%) Earliest Date X Latest Date • Barclays Intermediate Aggregate Index 20 0(0%) 0(0%) 12(60%) 8(40%) Peer Group Scattergram-3 Years ' Peer Group Scattergram-5 Years 2.80 - 4.50 r.2.60 0 • 4.20 • 2.40 3.90 r 2.20 re 2.00 0 3.60 0 1.80 1 1 1 3.30 1 1 1 1 1.74 1.80 1.86 1.92 1.98 2.04 2.10 2.16 2.10 2.16 2.22 2.28 2.34 2.40 2.46 2.52 2.58 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Intermediate Core 2.68 2.08 • Intermediate Core 4.25 2.51 O Barclays Intermediate Aggregate Index 2.09 1.78 • Barclays Intermediate Aggregate Index 3.58 2.19 Median 2.70 1.88 Median 3.95 2.34 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Intermediate Core 0.40 113.43 96.76 0.46 1.45 1.25 1.06 1.24 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 .15 Historical Statistics-5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intermediate Core 0.57 110.19 92.66 0.57 1.15 1.75 1.02 1.25 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 1.00 1.18 THE 55 r ( BOGDAHN `� GROUP. Rolling Percentile Ranking Templeton GI Bond;Adv(TGBAX) 20 Quarters Rolling Periods As of September 30,2014 Rolling Percentile Ranking vs.IM Global Fixed Income(MF) 0.0 \r\/\,\/ --/ \nr\/ --\/ 25.0 c a 11 w cp 50.0 w a c L c NNd 75.0 1 100.0 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 9/14 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%) 15 (35%) 1 (2%) 7 (16%) Manager composite returns used for chart population IIIN THE 56 [1 \ BOGDAHN `� GROUP. Relative Performance Templeton GI Bond;Adv(TGBAX) Since Inception Ending September 30,2014 Relative Performance 10.0 8.0 6.0 4.0 h�� 2.0 \/ . I III I II III II II I I I � � � . 11 iII 1 � I� _ I. . iIII o.o I III.. I imill I I III I I I -2.0 -4.0 -6.0 -8.0 -10.0 2/97 11/97 8/98 5/99 2/00 11/00 8/01 5/02 2/03 11/03 8/04 5/05 2/06 11/06 8/07 5/08 2/09 11/09 8/10 5/11 2/12 11/12 8/13 9/14 — Cumulative Annualized Over/Under Relative Performance Over/Under Performance Calculation based on monthly periodicity. 111.1\ THE 57 [ BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30.2014 Financial Reconciliation 1 Quarter No data found. Financial Reconciliation October 1,2013 To September 30,2014 No data found. Peer Group Analysis-IM Global Fixed Income(MF) ill Cumulative Performance 12.00 $500.00 8.00 $400.00 • $404.68 O O • p • 4.00 $300.00 E $ ■1.86 w re 0.00 • 0 0 C' $200.00 - 0 �•�•�-••`� / -4.00 $100.00 - -8.00 - $0.00 1 I I I I I I I I f QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/97 3/99 3/01 3/03 3/05 3/07 3/09 3/11 3/13 9/14 • Templeton GI Bond;Adv(TGBAX) 0.06 (15) 6.34 (13) 6.34 (13) 4.92 (4) 7.63 (5) 5.11 (13) 6.93 (10) O Citigroup World Government Bond -3.78 (91) -0.07 (97) -0.07 (97) -2.36 (92) -0.51 (97) 0.74 (89) 1.58 (96) - Templeton GI Bond;Adv(TGBAX) Median -1.59 3.63 3.63 1.52 3.31 2.69 3.73 Citigroup World Government Bond Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Mar-2013 Templeton GI Bond;Adv(TGBAX) 2.68 (40) 0.76 (95) 2.71 (2) 1.07 (48) -2.73 (32) 1.41 (7) Citigroup World Government Bond 2.27 (53) 2.66 (43) -1.09 (91) 2.88 (3) -2.97 (38) -2.77 (99) IM Global Fixed Income(MF)Median 2.38 2.49 0.70 0.93 -3.29 -0.48 THE 58 P Li---..0 BOGDAHN GROUP. Performance Review Templeton GI Bond;Adv(TGBAX) As of September 30,2014 3 Yr Rolling UnderlOver Performance-5 Years 3 Yr Rolling Percentile Ranking -5 Years 0.00 00 0000 0 0 15.0 ■ Over c m Performance f0 0 • • • X12.0 - Z $ v 25.00 • O O O 0 0 0 0 0 •• ••..ii a 9.0 - • • v 0 O 50.00 O c 6.0 - • a o On m 30 - E 7::: 00000000000. v Ihhimo. 00 - 1 1 1 0 ✓ Under a -3.0 - Performance 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14 c 1 1 1 1 1 1 1 1 1 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Total Period 5-25 25-Median Median-75 75-95 Citigroup World Government Bond(%) Count Count Count Count • Templeton GI Bond;Adv(TGBAX) 20 15(75%) 5(25%) 0 (0%) 0(0%) • Over Performance + Earliest Date X Latest Date 0 Citigroup World Government Bond 20 3(15%) 3(15%) 1 (5%) 13(65%) Peer Group Scattergram-3 Years ili. Peer Group Scattergram-5 Years 9.00 • 8.00 • 6.00 ^6.00 3.00 E 4.00 w w re 0.00 - 0 X2.00 0 -3.00 I I I 0.00 I I I I 3.30 3.96 4.62 5.28 5.94 6.60 7.26 7.92 8.58 4.59 5.10 5.61 6.12 6.63 7.14 7.65 8.16 8.67 Risk(Standard Deviation%) Risk(Standard Deviation%) Return Standard Return Standard Deviation Deviation • Templeton GI Bond;Adv(TGBAX) 7.63 7.75 • Templeton GI Bond;Adv(TGBAX) 6.93 8.12 O Citigroup World Government Bond -0.51 4.38 0 Citigroup World Government Bond 1.58 5.89 Median 3.31 4.56 Median 3.73 5.45 Historical Statistics-3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Beta Ratio Ratio Risk Capture Capture Templeton GI Bond;Adv(TGBAX) 7.13 163.54 34.65 8.28 1.13 0.98 0.74 4.71 Citigroup World Government Bond 0.00 100.00 100.00 0.00 3.43 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) 8.07 113.15 39.34 6.34 0.66 0.86 0.51 5.48 Citigroup World Government Bond 0.00 100.00 100.00 0.00 1.00 4.27 imil THE 59 [ BOGDAHN GROUP. The Market Environment Plan Investment Performance Quarter Ended: September 2014 Portfolio Attribution (Reference The Bogdahn Group September 2014 Report) Market Review— There is a ton of good news to discuss regarding the U.S. economy during the third quarter. First, GDP was revised significantly upwards during the period. After two revisions, the final tally for 2014 real GDP stood at+4.6% (annualized), up dramatically from the-2.9%that was reported in the prior quarter. This was a sizeable increase from the previous+4.2% revision. Second, the unemployment rate came in at 6.1% in August, the lowest reported figure during this extended economic recovery cycle. Other improving elements included; corporate profits rising by 8.4% after having declined 9.4% in the prior quarter, consumer spending as measured by the Personal Consumption Expenditures (PCE) index rose 2.3%, up from 1.4% in the second quarter, and the NAHB Housing Market Index, a measure of homebuilding activity, ended the quarter at 59, up significantly from the previous quarter's reading of 49 and the highest level since November 2005. So what happened? The domestic stock market struggled in the third quarter as the S&P 500 barely ended in the black while all other major indices were flat-to-negative. Small caps in particular took it on the chin, as the Russell 2000 fell -7.36%during the period. On the surface, these results seem counterintuitive in light of all the perceived tailwinds. But alas, the U.S. economy does not reside in a bubble and extraneous factors had a significant impact. The juxtaposition of U.S. economic growth to the malaise facing the rest of the world could not be starker. European growth continues to be non-existent, hampered by high levels of unemployment and debt. Japan offered initial signs of hope in the early days of"Abenomics", but has slowed considerably since an April sales tax increase. Finally, China has articulated a 7.5%annualized growth target, but economists are worried about a cooling off of the Chinese property market as a result of a potential credit bubble. Recent data suggests China may not meet its internal growth target, which may result in policymakers furthering stimulus measures to mitigate a further slowdown. When one factors in the exogenous shocks created by the Ebola epidemic, ISIS, Syria, and the Russian/Ukrainian conflict, it is no surprise that the Chicago Board Options Exchange Volatility Index (VIX) increased 41%quarter-over-quarter to 16.3 from the multi-year low established in Q2. The natural result of such fear was investors flocking to the perceived safety of large cap, blue chip domestic equities at the expense of U.S. small cap and international companies. It was a bit of a roller coaster ride for U.S. investors overseas during the third quarter, as the US dollar appreciated significantly, negatively impacting foreign investments. Emerging market equities again outperformed Non-US developed equities. The MSCI EM Index was down 3.5%. Developed overseas equities declined as well, and all Non- US equities lagged domestic large cap equities significantly. The MSCI EAFE Index was down 5.9% compared to the S&P 500 Index return of+1.1%. In fixed income, long dated Treasuries and municipal bonds were the places to be in the third quarter, whereas Credit lagged. As uncertainty rose, credit spreads widened across the curve, but the effect was amplified as one moved down the credit quality spectrum. The yield on the Barclays 1-3 Year Credit Index rose moderately to 1.18%from 0.97%during the quarter. Intermediate credits were also up a bit, as the yield on the Barclays 7-10 Year Credit Index rose to 3.59%from 3.41% at the start of the period. High Yield credits fared the worst in this environment. The yield on the Barclays U.S. Corporate High Yield Index jumped to 6.44%from 5.72% at the start of the quarter. Plan attribution: • Plan assets earned ($3,911,864)from investments for the fiscal year 2014, of which $574,352 came from interest income and$3,337,512 from market appreciation. • For the quarter, the plan returned -1.08%vs. -0.64%for the fund policy. This put the plan in the 47th percentile amongst its peers. • For the fiscal year, the plan returned 11.85%vs. 11.38%for the fund policy. This put the plan in the 15th percentile amongst its peers. • RBC had a slight pull back during the quarter, returning -7.80 vs. -5.83% for the MSCI EAFE. However, for the fiscal year to date RBC returned 10.08%vs. 4.70% for the MSCI EAFE. • Galliard Core Fixed Income finished ahead of benchmarks, and Templeton Global Bond outperformed its benchmark by nearly 4%. • Investment diversification to Real Estate continued to influence results positively with both manager allocations providing meaningful, and steady returns. THE BOGDAHN 60 ``J GROUP The Market Environment Plan Investment Performance Quarter Ended: September 2014 Portfolio Attribution (Reference The Bogdahn Group September 2014 Report) What helped? • The overall allocation to equities, and complimentary commitments to Real estate, were the primary drivers of return for the quarter. • The program continues to receive a significant performance boost from the allocation alternatives to investment grade fixed income. • Over the last fiscal year, 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? • International was a drag on performance during the quarter. • Domestic Fixed Income although slightly positive for the quarter continues to give small amounts of return. • The TIPS allocation was the largest detractor within the fixed income markets Recommendations/Actions: • Continue to review alternative fixed income strategies. THE 61 BOGDAHN GROUP Page Intentionally Left Blank 62 Benchmark Historical Hybrid Compositions Total Fund As of September 30,2014 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 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 Total Domestic Equity Policy Barclays Intermediate Aggregate Index 25.00 Allocation Mandate Weight(%) MSCI EAFE Index 15.00 Jan-1926 Barclays U.S.Treasury: U.S.TIPS Index 5.00 S&P 500 Index 100.00 NCREIF Property Index 5.00 Oct-2009 Oct-2010 Russell 3000 Index 100.00 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 20.00 MSCI EAFE Index 15.00 Barclays U.S.Treasury: U.S.TIPS Index 5.00 Total Fixed Income Policy NCREIF Fund Index-ODCE(VV� 10.00 Allocation Mandate Weight(%) Nov-2000 Barclays Aggregate Index 100.00 Total Domestic Equity Policy Sep-200r Allocation Mandate Weight(%) Barclays Intermediate Aggregate Index 100.00 'un-200? MSCI US Broad Market Index 100.00 American Realty Policy Allocation Mandate Weight(%) Feb-2013 )ct-2007 CRSP U.S.Total Market TR Index 100.00 NCREIF Property Index 100.00 Oct-2010 NCREIF Fund Index-ODCE(VV/) 100.00 [Hk: 63 BOGDAHN GROUP. Disclosures Total Fund As of September 30,2014 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. [Hk: 64 BOGDAHN GROUP. Compliance Checklist Total Fund Winter Springs GE As of September30,2014 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. Manager Compliance: Vanguard RBC Global Galliard TIPS Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1. Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓ 2. Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓ 3. Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ ✓ 4. Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ ✓ 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ 6. Three year down-market capture ratio less than the index. ✓ ✓ ✓ ✓ II Templeton American RE Intercontinental ■ Manager Compliance: Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1. Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ 2. Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ 3. Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ 4. Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 6. Three year down-market capture ratio less than the index. ✓ ✓ ✓ 65 The Bogdahn Group Your Service Team Contact Information Nick Rowlands Dave West Department: Performance Measurement Department: Consultant Team 3;111 Tit Performance Analyst Senior Consultant Direct Phone: 407-520-5355 Direct Phone: 863-904-0858 NickR @bogdahngroup.com DaveW @bogdahngroup.com Misha Bell Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road,Suite 600 Orlando,Florida 32811 II- ServiceTeam003@bogdahngroup.com Phone: 863-594-1425 Phone: Service Team Group Email: ServiceTeam003 @bogdahngroup.com Err Mishab @bogdahngroup.com THE cBOGDAHN � GROUP. 66 Report Statistics Definitions and Descriptions Active Return -Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. 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. 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. 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 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. Excess Return -Arithmetic difference between the manager's performance and the risk-free 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. 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. 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. Return -Compounded rate of return for the 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. 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. 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. 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. 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. THE 67 [� BOGDAHN `� GROUP. Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result,this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable,but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting,or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document,advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses.All information provided by S&P Indices is impersonal and is not tailored to the needs of any person,entity or group of persons.Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI,2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an"as is"basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. 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This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use,disclosure,copying,dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein:(1)is proprietary to Morningstar and/or its content providers; (2)may not be copied,adapted or distributed;and(3)is not warranted to be accurate,complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information,except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. THE 68 [� BOGDAHN `'� GROUP. THE BOGDAHN GROUP. siniplifj,ing your investment and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240. 7932 Chicago Milwaukee Cleveland