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2015 05 12 Regular 600 Quarterly Investment Performance Review
BOARD OF TRUSTEES AGENDA ITEM 600 REQUEST: May 12, 2015 Regular Meeting Informational Consent Public Hearings Regular I X Mgr. / Dept. Authorization The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Second Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): A. Quarterly Investment Performance Review (50 pages) WWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 1st Quarter 2015 Attachment A THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 1st Quarter 2015 Market Environment Fuk: r BOGDAHN GROUP. ■ Investment returns during the first quarter of 2015 were positive across the board. Domestically, small and mid cap companies outperformed large cap companies for the second consecutive quarter. This outperformance is due largely to a strengthening U.S. dollar (USD), with large cap companies in the S &P 500 Index generally having more international currency exposure versus the more domestically focused small cap companies in the Russell 2000 Index. ■ Despite the strong USD, which provided a headwind to international returns in the U.S., international stocks had a strong start versus domestic indices. Through the first quarter, both developed international and emerging markets outperformed large cap U.S. indices with only mid to small domestic companies keeping pace. The outperformance was primarily driven by the European Central Bank's January decision to begin a quantitative easing program to combat slowing growth prospects throughout the region. ■ U.S. interest rates fluctuated considerably due to strength of the USD, U.S. economic data, geopolitical news, and the prospect of tighter monetary policy, only to end slightly lower than where they began for the quarter. This decline in rates was a tailwind for bond returns. Investment grade corporate bonds outperformed U.S. government bonds and mortgage- backed securities (MBS) due to their longer duration and as a result of tightening spreads. ■ Trailing one -year returns painted a different picture, with U.S. large company stocks outperforming all indices except the Russell Mid Cap Index. Despite the strong quarter, developed international stocks posted negative returns with emerging market stocks finishing the year narrowly positive. Bond returns over the last 12 months were strong, primarily driven by falling interest rates across the majority of the yield curve. Source: Investment Metrics MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG The Market Environment Major Market Index Performance As of March 31, 2015 Quarter Performance 3.6% 5.0% 2.3% 1.0% 1.8% 1.69 4.0% 4.3% 1.6 °0 1.6° 1.4% 2.3% 3 -Month T -Bill 1 0.0% 0.0% 2.0% 1 -Year Performance MSCI ACWxUS -0.6% MSCI EAFE -0.5% MSCI Emerg Mkts 0.8% S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill -2.0% 2 3.1% 0.0% 4.0% 12.7 /o 12.4% 12.73/o 13.7% 8.2% ] 5.7% 5.2% 5.5% 6.8°0 6.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% THE. (� BOGDAHN `'� GROUP. ■ Domestic stocks performed well through the first quarter of the year with only large cap value stocks finishing March with negative returns. Mixed economic data created volatility as growing optimism due to favorable corporate earnings reports, strong employment data, and oil price stabilization were offset by fears that the Federal Reserve could speed up its timetable for raising short -term interest rates. However, modest GDP, weak durable goods, and weak retail sales reports released during March alleviated fears of tighter monetary policy in the near term, pushing the indices higher to end the quarter. ■ There were two notable trends in U.S. domestic equities in the first quarter of the 2015. First, mid to small cap companies outperformed large cap stocks through the end of the period. A considerable portion of this outperformance is attributed to the strengthening of the U.S. dollar as investors favored small cap stocks with less exposure to foreign currencies than large multinationals. Secondly, growth stocks outperformed value stocks throughout the large cap spectrum with large cap value stocks finishing the quarter in negative territory. • On average, over the trailing one -year period, returns were strongest in the mid cap space with all styles posting double digit returns. Small caps trailed both mid and large cap names. Similar to the quarterly results, growth outperformed value throughout the small cap spectrum. ■ Based on their 20 -year average P/E ratios, current valuations for both the value and core indices suggest they were modestly overvalued, with growth indices outside of the Russell 1000 Growth Index being close to fair value . Mid cap stocks appeared more overvalued than small caps with large stocks being slightly undervalued. Large cap growth stocks were the most undervalued with a current P/E ratio that was 91.7% of its long -term average. In contrast, the Russell Mid Cap Value Index, the most overvalued index, had a current P/E ratio that was 124.4% of its long -term average. 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth The Market Environment Domestic Equity Style Index Performance As of March 31, 2015 Quarter Performance - Russell Style Series -0.5% 1.8% 4.0% -0.7% 3.8% 2.4% 4.0% 5.4% 2.0% 4.3% 6.6% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 1 -Year Performance - Russell Style Series 8.9% 12.4% 15.8% 9.3% 12.7% 16.1% 13.7% 15.6% 11.7% 4.4% 8.2% 12.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source: Investment Metrics THE, 3 ( BOGDAHN `'� GROUP. Within large caps, sector performance was somewhat lackluster as Consumer Disc (13.1 %) only five of ten economic sectors returned +/- 2% for the quarter. Consumer Staples (8.9 %) Consumer Discretionary and Health Care posted the strongest results with Utilities and Energy detracting the most. On a one -year basis, six Energy (7.6 %) of ten sectors posted returns in the double digits with Energy being the Financials (17.1 %) only sector with a negative return due to a sharp drop in oil prices which began in the third quarter. Health Care (14.5 %) Small cap performance for the quarter was led by Health Care, Industrials (11.1 %) Consumer Discretionary, and Information Technology. Only Energy and Telecom Services posted negative returns for the quarter, both Info Technology (19.1 %) returning -0.6% Over the trailing one -year period, five of ten sectors Materials (3.5 %) returned +10% with only three sectors posting a negative absolute return. Energy was the largest outlier, returning a disproportionate - Telecom Services (2.1 %) 39.2% over the last 12 months. Utilities (3.0 %) The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2015 Russell 1000 ❑Quarter 01 -Year 4.6% 71.3% 17.3% 16.9% -2.3% -11.9% -0.9% 10.7% 7.4% 27.6% 0.2% 8.5% 1.4°/ 17.7% 4.5% 2.0% 4.9 % 10.2% Sector valuations were fairly mixed. On a trailing r-/F- basis, the - 15.0% -5.0% 5.0% 15.0% 25.0% Russell 1000 was relatively cheap compared to the Russell 2000. Based on trailing P /E, four sectors in the S &P 500 had valuations lower Russell 2000 1 ❑Quarter 01 -Year than their 20 year average, one sector is fairly valued, and five sectors Consumer Disc (14.0% had valuations above their 20 year average. Information Technology and Energy appear to be the most undervalued and Telecom Services Consumer Staples (3.2% and Utilities were the most overvalued based on their long -term average P/E ratios. Energy (3.4% By far the most drastic underperformance of all sectors over the past Financials (23.6% year occurred in Energy. Falling from a June high near $115 /barrel, oil Health Care (15.6% prices (Brent Crude Spot Price) plummeted since the beginning of the third quarter of 2014, but prices appear to have stabilized, closing the Industrials (13.6% quarter near $54 /barrel. The cause of this drastic price change centered on the expanding world oil supply with lower forecasts of oil Info Technology (17.9% consumption growth due to a weaker outlook for the global economy. Materials (4.4% Telecom Services (0.7% Utilities (3.5 %) -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Source: Morningstar Direct ^ THk: 4 \ BOGDAHN GROUP. s.2 °ro 11.2% 0.2% 10.5% -0.6% 1.6 39.2% 9.5% 12.7% 29.7% 2.s% 1.5% 5.0% 12.7% 0.7% -2.8% -0.6% -2.5% 16.1 % -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Source: Morningstar Direct ^ THk: 4 \ BOGDAHN GROUP. Russell 1000 Apple Inc Top 10 Weighted Weight 3.55% Stocks 1-Qtr Return 13.2% 1-Year Return 65.4% Sector Information Technology Exxon Mobil Corporation 1.73% -7.4% -10.5% Energy Microsoft Corp 1.59% -11.9% 1.8% Information Technology Johnson & Johnson 1.35% -3.1% 5.2% Health Care Berkshire Hathaway Inc Class B 1.25% -3.9% 15.5% Financials Wells Fargo & Co 1.23% -0.1% 12.4% Financials General Electric Co 1.18% -0.9% -0.8% Industrials JPMorgan Chase & Co 1.08% -2.6% 2.4% Financials Pfizer Inc 1.05% 12.7% 12.2% Health Care Procter & Gamble Co 1.05% 1 -9.4% 4.8% Consumer Staples ITop Lsell rrr Pharmacyclics Inc r 0.07% Quarter) e 109.3% 155.4% 1 Health Care Intercept Pharmaceuticals Inc 0.02% 80.8% -14.5% Health Care Freescale Semiconductor Ltd 0.02% 61.6% 67.0% Information Technology Salix Pharmaceuticals Ltd 0.05% 50.3% 66.8% Health Care Hospira Inc 0.07% 43.4% 103.1% Health Care Orbital ATK Inc 0.02% 41.8% 16.9% Industrials Exelis Inc 0.02% 39.6% 40.5% Industrials Twitter Inc 0.12% 39.6% 7.3% Information Technology Kraft Foods Group Inc 0.25% 39.0% 61.1% Consumer Staples Nu Skin Enterprises Inc Class A 0.02% 38.6% -25.3% Consumer Staples ks (by Russell rrr Weight Watchers International Inc 0.00% -71.9% Quarter) 1-Year Sector Return -66.0% Consumer Discretionary Ocwen Financial Corp 0.00% -45.4% -78.9% Financials Apollo Education Group Inc Class A 0.01% -44.5% -44.7% Consumer Discretionary zulily Inc Class A 0.00% -44.5% -74.1% Consumer Discretionary Tidewater Inc 0.00% -40.4% -59.6% Energy Stratasys Ltd 0.01% -36.5% -50.2% Information Technology Peabody Energy Corp 0.01% -36.4% -69.3% Energy SanDisk Corp 0.06% -34.8% -20.6% Information Technology Rayonier Advanced Materials Inc 0.00% -32.9% N/A Materials Cliffs Natural Resources Inc 0.00% -32.6% 1 -75.7% IMaterials Source: Morningstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2015 THE [r BOGDAHN `� GROUP Qorvo Inc 0.63% N/A N/A Information Technology ISIS Pharmaceuticals Inc 0.41% 3.1% 47.4% Health Care Puma Biotechnology Inc 0.30% 24.7% 126.7% Health Care Office Depot Inc 0.27% 7.3% 122.8% Consumer Discretionary Ultimate Software Group Inc 0.27% 1 15.8% 24.1% Information Technology JetBlue Airways Corp 0.26% 21.4% 121.5% Industrials Brunswick Corp 0.26% 0.6% 14.8% Consumer Discretionary Graphic Packaging Holding Co 0.26% 7.1% 43.6% Materials DexCom Inc 0.26% 13.2% 50.7% Health Care Maximus Inc 0.25% 21.8% 49.4% Information Technology Top r Quarter) Russell 2000 Weight ML;;j Gordman's Stores Inc 0.00% 204.0% 52.0% Consumer Discretionary Cellular Dynamics International Inc 0.01% 155.5% 10.0% Health Care Cytori Therapeutics Inc 0.01% 141.5% -56.3% Health Care Nil Holdings Inc 0.00% 135.1% -96.3% Telecommunication Services Esperion Therapeutics Inc 0.03% 129.0% 512.4% Health Care Egalet Corp 0.00% 127.2% -7.6% Health Care Ampio Pharmaceuticals Inc 0.02% 119.5% 18.6% Health Care Foundation Medicine Inc 0.04% 116.5% 48.6% Health Care Fairway Group Holdings Corp Class A 0.01% 114.9% -11.4% Consumer Staples ZIOPHARM Oncology Inc 0.05% 112.4% 1 135.2% 1 Health Care Quarter) rrr Corporate Resource Services Inc 0.00% -98.3% -99.4% Industrials Doral Financial Corp 0.00% -98.0% -99.1% Financials BPZ Resources Inc 0.00% -90.9% -99.2% Energy Wet Seal Inc Class A 0.00% -89.7% -99.5% Consumer Discretionary Body Central Corp 0.00% -88.7% -98.9% Consumer Discretionary Quicksilver Resources Inc 0.00% -87.6% -99.1% Energy Allied Nevada Gold Corp 0.00% -87.4% -97.4% Materials FXCM Inc 0.01% -87.1% -85.4% Financials Speed Commerce Inc 0.00% -79.3% -82.5% Information Technology Corinthian Colleges Inc 0.00% -77.7% -99.0% Consumer Discretionary THE [r BOGDAHN `� GROUP ■ The year began with a modest sell -off in non -U.S. equities and an unexpected, and unusual, currency event as the Swiss National Bank announced the dissolution of the country's three -year peg to the euro mid - January. Later that month, the European Central Bank made the decision to begin a quantitative easing program to combat slowing growth prospects throughout the region. Developed non - U.S. equities began to surge, leading to the strongest month for the MSCI EAFE Index in over a year. ■ On a regional basis, stocks in Latin America turned in the worst quarterly performance in both local currency and USD terms for the second consecutive quarter. • There were fewer negative returns within developed markets this quarter compared to the recent past, but within emerging markets, negative returns were more common and generally more severe. Denmark ( +16.7 %) was the top - performing developed country, while Singapore (- 1.9 %), New Zealand (- 1.5 %), and the UK ( -1.0 %) had the worst performance. Interestingly, Russia ( +18.6 %) was the best performing emerging market, while Greece (- 29.3 %) was, by far, the worst performer as the country faced possible bankruptcy. • During the first quarter, USD appreciation once again created a significant drag on returns for U.S. investors in most overseas markets. The Brazilian real depreciated significantly versus the USD during the quarter, leading to a large difference in returns between local and USD returns in Latin American equities. ■ Only two sectors ended the quarter in negative territory for developed non -U.S. stocks - Energy (4.7 %) and Utilities (4.8 %). On the opposite end of the spectrum, Health Care ( +9.9 %) and Consumer Discretionary ( +8.4 %) led MSCI EAFE performance. For the MSCI EM Index, Health Care ( +6.7 %) and Consumer Discretionary ( +4.1 %) stocks performed strongly but were bested by Information Technology ( +8.5 %) stocks. Materials ( -3.1 %) and Utilities ( -2.1 %) stocks detracted the most. ■ Similar to U.S. indices, growth outperformed value across the board, while, in general, small caps outperformed large caps. Source: MSCI Global Index Monitor (Returns are Gross) The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2015 Quarter Performance AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) o -9.5 /o - 10.0 % -5.0% 0.0% 1 -Year Performance ❑USD ❑ Local Currency 3.6% 9.1% 4.0% 10.2% 11.0% _ 3.6% 11.7% 9.5% 4.9% 2.o °ro 5.7% 5.3% 5.7% 1.3% 5.0% 10.0% 15.0% ❑ USD ❑ Local Currency AC World x US (45) -0.6% 16.0% WORLD x US (22) -0.9% 173 o EAFE (21) -0.5% 18.3% Europe & ME (16) -4.3% 15.5% Pacific (5) 7.7% 24.2% Emerging Mkt (23) 0.8% 11.31/o EM EM EA (10) 11.6% EM Asia (8) 11.1 °0 14.6% EM Latin Amer (5) 20'7% 2.4% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 ^\ [ UL BOGDAHN GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 13.1% 8.4% 6.0% Consumer Staples 11.0% 4.7% 2.0% Energy 5.1% -4.7% - 23.4% Financials 26.0% 4.9% -0.5% Health Care 11.4% 9.9% 10.5% Industrials 12.7% 6.2% -2.1% Information Technology 4.9% 7.2% 7.2% Materials 7.5% 3.4% -8.0% Telecommunication Services 4.7% 2.5% 0.6% Utilities Total 3.6% 00 -4.8% -7.3% -4.2% Netherlands 2.7% 2.0% Consumer Discretionary 11.8% Quarter 7.2% 5.3% Consumer Staples 9.9% 3.9% 1.9% Energy 6.9% -4.0% - 22.7% Financials 27.3% 2.3% 0.5% Health Care 9.1% 10.6% 12.4% Industrials 11.1% 4.8% -1.5% Information Technology 7.8% 7.7% 11.4% Materials 7.6% 1.6% - 11.4% Telecommunication Services 5.1% 1.7% 1.9% Utilities 3.4% -4.5% -6.5% ConsumerDiscretionary 9.4% 4.1% -1.1% Consumer Staples 8.1 % 2.0% -1.4% Energy 8.0% 2.3% -21.2% Financials 28.5% -0.2% 5.7% Health Care 2.4% 6.7% 25.6% Industrials 6.8% 1.3% -1.3% Information Technology 19.1% 8.5% 15.0% Materials 7.0% -2.1% -18.0% Telecommunication Services 7.4% 1.5% 6.3% Utilities Total 3.3% 100.0% -3.1% 2.3% -3.1% r: Sweden 3.1% 2.2% 5.6% Source: MSCI Global Index Monitor (Returns are Gross in USD) The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2015 Country MorWeight Japan 22.2% Weight 15.9% Return 'lWeyt 10.3% urn 12.4% United Kingdom 19.8% 14.2% -1.0% -5.5% France 9.7% 7.0% 4.8% -7.4% Germany 9.5% 6.8% 8.4% -2.0% Switzerland 9.3% 6.6% 5.1% 0.7% Australia 7.3% 5.2% 3.1% -5.8% Spain 3.6% 2.6% -0.6% -9.2% Hong Kong 3.1% 2.3% 6.0% 15.3% Sweden 3.1% 2.2% 5.6% -4.2% Netherlands 2.7% 2.0% 4.9% 0.5% Italy 2.3% 1.7% 6.8% -15.2% Denmark 1.7% 1.2% 16.7% 6.9% Singapore 1.5% 1.0% -1.9% 2.0% Belgium 1.3% 0.9% 6.0% 8.5% Finland 0.9% 0.6% 2.8% 3.3% Norway 0.6% 0.5% 2.4% -21.1% Israel 0.6% 0.4% 9.1% 13.7% Ireland 0.3% 0.2% 3.8% -6.7% Austria 0.2% 0.1% 3.2% -25.1% Portugal 1 0.2% 1 0.1% 7.3% 1 -39.1% New Zealand 0.2% 0.1% -1.5% -8.61%. Canada Total Developed Countries 6.8% 78.5% -5.9% r -5.5% r China 5.0% 8.1% 24.3% Korea 3.2% 4.4% -4.9% Taiwan 2.8% 4.0% 13.2% South Africa 1.7% 3.3% 4.2% India 1.6% 5.4% 20.7% Brazil 1.6% - 14.6% - 28.4% Mexico 1.0% -1.9% -6.3% Russia 0.8% 18.6% - 24.9% Malaysia 0.8% -1.6% - 11.7% Indonesia 0.6% 2.5% 7.5% Thailand 0.5% 2.5% 11.4% Turkey 0.3% -15.8% -4.3% Poland 0.3% -3.0% -19.0% Philippines 0.3% 10.2% 26.2% Chile 0.3% 0.1% -10.1% Qatar 0.2% -3.3% -1.9% Colombia 0.1% -19.1% - 38.3% United Arab Emirates 0.1% -5.3% -13.8% Peru 0.1% -6.0% -0.5% Greece 0.1% - 29.3% -64.1% Egypt 0.1% 1.5% 20.2% Czech Republic 0.0% -3.1% - 12.1% Hungary 0.0% 14.0% -9.4% r r THIS Q- BOGDAHN -'O* GROUP ■ Domestic bond markets were positive during the first quarter of 2015 as broad U.S. fixed income indices moved in tandem with U.S. Treasuries throughout the period. The Barclays Aggregate Index returned +1.6% with U.S. corporate bonds driving performance relative to U.S. Treasury and mortgage backed securities. ■ Investors were rewarded for taking on more credit risk with A and Baa credits directing investment grade performance for the quarter. High yield credit outperformed investment grade with Ba and B credits outperforming Caa issues. Furthermore, since rate hikes are generally associated with an improving economic environment and should the Fed begin to raise rates, it is plausible spreads could tighten further as company fundamentals strengthen. ■ Due to the decline in interest rates along the yield curve, longer dated issues outperformed short maturity issues. For example, the quarterly return on the 30 -Year Treasury was +5.1% versus a +2.6% return on the 10 -Year Treasury. ■ The domestic bond market dramatically outpaced the international bond market, represented by the Barclays Global Aggregate ex U.S. Index, by +6.2 %. The performance differential was heavily influenced by the USD strengthening +6.6 %, with returns in local currency far more attractive at +2.0 %. The European Central Bank's announcement of a quantitative easing program fueled an ongoing rally in European core and peripheral country bonds. In fact, outside of the U.S., few central banks worldwide have considered tightening monetary policies. The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of March 31, 2015 AAA (4.7) AA (5.8) A (7.3) Baa (7.8) U.S. High Yield (4.2) U.S. Treasury (5.7) U.S. Mortgage (3.5) U.S. Corporate IG (7.4) U.S. TIPS (6.0) Aggregate (5.4) Intermediate Agg (3.8) Global Agg x US (7.5) Multiverse (6.4) Quarter Performance -4.6% -6.0% -4.0% 1 -Year Performance AAA (4.7) AA (5.8) A (7.3) Baa (7.8) U.S. High Yield (4.2) U.S. Treasury (5.7) U.S. Mortgage (3.5) U.S. Corporate IG (7.4) U.S. TIPS (6.0) Aggregate (5.4) Intermediate Agg (3.8) Global Agg x US (7.5) Multiverse (6.4) -1.9% -2.0% 1.4% 1.8% 2.2% 2.3% 2.5% 1.6% 2.3% 1 1.4% 1.6% 1.3% 0.0% 2.0% 4.0% 5.3% 5.9% 7.0% 6.9% 2.0% 5.4% 5.5% 1 6.8% 3.1 -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: Barclays Capital Live Tum [ BOGDAHN `� GROUP ■ The yield curve in the U.S. continued to flatten during the first quarter. Since prices and performance move in the opposite direction of yields, the long -end of the curve was the best performing maturity segment as 30 -year Treasuries returned +5.1% during the period. The yield on the 10 -year Treasury fell from 2.17% to 1.94% ending the quarter below 2.0 %. At the short end of the curve, 2 -year Treasuries fell from 0.67% to 0.56 %. ■ Since rising to more attractive yields in mid -to -late 2013, the yield curve has gradually flattened and interest rates have declined, particularly in longer -dated maturities. This resulted in positive returns over the past twelve months, especially in investment grade or better, intermediate term or longer securities. The expectation is that given strong economic growth, lower unemployment, the end of the Fed's QE program, and better housing numbers, interest rates will soon rise. However, the impact of foreign purchases and generally benign inflation has been a natural headwind to rising rates. ■ Interest rates fluctuated considerably in the U.S. during the first quarter of 2015. Improving economic data initially caused rates to rise as investors speculated the Federal Reserve could begin tightening monetary policy as early as June. However, based on Janet Yellen's comments in late March, and mixed economic reports near quarter -end, investor fears of imminent Fed policy tightening in June were abated causing rates to fall. Despite the volatility, rates ended the quarter lower with broad U.S. credit indices posting solid gains. ■ The European Central Bank announced a quantitative easing plan in response to below- target inflation figures. The 60 billion euro per month bond buying program was larger than investors expected and was designed to revitalize the Eurozone economy and fight deflationary pressures. 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2015 1 -Year Trailing Market Rates 0.00 1 1 T Mar -14 Apr -14 May -14 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 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) �"** Tum 9 BOGDAHN GROUP Page Intentionally Left Blank THIS o [� BOGDAHN `� GROUP ■ In an effort to better serve your needs, The Bogdahn Group is conducting its annual client survey. ■ We sincerely thank you for taking the time to fill out this survey. The insights gained will help The Bogdahn Group continue to improve and better serve you. Additionally, we use the information to evaluate our consultants and identify areas of professional improvement. This survey is short and should take approximately five minutes to complete. The Bogdahn Group will keep all information provided completely confidential and will never release information to third parties. This survey is for internal use only. ■ If you do not receive an individual e-mail from the survey company, please participate by directing your browser to https://www.surveymonkey.com/s/TBGSurvev20l4. ■ If you have any questions about the survey, please contact Tala Chin at (863) 877 -0323 or clientsurveya-bogdahngroup.com. ■ Thank you again for your help. We look forward to reviewing your feedback. The Market Environment The 2014 Bogdahn Client Survey Please rate The Bogdahn Group on the following based on a scale of 1 — 10 (1 very poor and 10 Excelleno: Your consulting team's level of understanding of your Plan /Fund's unique needs and objectives. © Your satisfaction with the accuracy, level of detail, and timeliness of your performance report. © Your consulting team's ability to effectively communicate the information in the performance report. Your consulting team's ability to effectively communicate investment insights beyond those in the performance report. © Effort of your consulting team to offer proactive suggestions and /or innovative solutions to enhance your portfolio goals and objectives. The outcomes /satisfaction of your consultant's suggestions and /or investment solutions. The timeliness and effectiveness of your consulting team's responses to regular inquiries. (Our firm policy is to reply to all inquiries within 24 hours.) aYour satisfaction with your fee structure relative to the value delivered. Your overall satisfaction with The Bogdahn Group's services, professional staff, and resources. MPlease select your preferred methods(s) to receive performance and research reports: - Emailed (PDF) in advance of the meeting - Hard copies mailed in advance of the meeting - Hard copies delivered at meeting - Electronic "Portal" access through Bogdahn - Alternative electronic format (CDs, Flash Drive, Tablet) - Other PSN THE The Bogdahn Group Client Survey link will be live through June 15, 2015. 11 [� BOGDAHN `� GROUP Asset Allocation By Segment as of December 31, 2014 : $3797579683 Asset Allocation Summary Total Fund As of March 31. 2015 Asset Allocation By Segment as of March 31, 2015 : $3897419801 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 18,651,785 49.4 _ Domestic Equity 18,989,619 49.0 m International Equity 5,330,260 14.1 m International Equity 5,656,723 14.6 • Domestic Fixed Income 7,800,029 20.7 ■ Domestic Fixed Income 7,915,899 20.4 • Global Fixed Income 1,278,113 3.4 ■ Global Fixed Income 1,270,903 3.3 • Other Fixed Income 600,151 1.6 ■ Other Fixed Income 644,126 1.7 7 Real Estate 3,509,246 9.3 7 Real Estate 3,572,256 9.2 Cash Equivalent 588,100 1.6 Cash Equivalent 692,275 1.8 THE 12 l BOGDAHN �� GROUP. Allocation Asset Allocation By Manager as of December 31, 2014 : $3797579683 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of March 31. 2015 Asset Allocation By Manager as of March 31, 2015 : $3897419801 Market Value Allocation Vanguard Total Stock Market (VITSX) 18,651,785 49.4 Vanguard Total Stock Market (VITSX) 18,989,619 49.0 — RBC Global (Voyageur) 5,330,260 14.1 — RBC Global (Voyageur) 5,656,723 14.6 ■ Galliard Core Fixed Income 4,654,026 12.3 ■ Galliard Core Fixed Income 4,720,906 12.2 m Intercontinental 2,254,233 6.0 = Intercontinental 2,280,157 5.9 • Vanguard Short Term Bond Index (VSCSX) 2,002,316 5.3 ■ Vanguard Short Term Bond Index (VSCSX) 2,023,149 5.2 • Templeton Global Bond Fund (FBNRX) 1,278,113 3.4 American Core Realty Fund 1,307,320 3.4 American Core Realty Fund 1,264,952 3.4 ■ Templeton Global Bond Fund (FBNRX) 1,270,903 3.3 Galliard TIPS 1,168,063 3.1 Galliard TIPS 1,190,074 3.1 Crescent Direct Lending Fund 600,151 1.6 Receipt & Disbursement 658,824 1.7 Receipt & Disbursement 553,785 1.5 Crescent Direct Lending Fund 644,126 1.7 PSN TuiE 13 i BOGDAHN `-'O* GROUP Page Intentionally Left Blank 14 Asset Allocation vs. Target Allocation Total Domestic Equity Total International Equity Total Domestic Fixed Income Total Global Fixed Income Total Real Estate Total Other Fixed Income Receipt & Disbursement Galliard Cash -3.3% -1.0% -1.7% -0.4% -0.7% 1.7% 5% Asset Allocation vs. Target Allocation Total Fund As of March 31, 2015 -15.0% -12.0% -8.0% Allocation Differences Market Value -4.0% 0.0% 4.0% Allocation ( %) 8.0% 12.0% Target ( %) 15.0% Total Domestic Equity 18,989,619 49.0 50.0 Total International Equity 5,656,723 14.6 15.0 Total Domestic Fixed Income 7,934,130 20.5 15.0 Total Global Fixed Income 1,270,903 3.3 5.0 Total Real Estate 3,587,476 9.3 10.0 Total Other Fixed Income 644,126 1.7 5.0 Receipt & Disbursement 658,824 1.7 0.0 Galliard Cash - - 0.0 Total Fund 38,741,801 100.0 100.0 _ [ uk: BOGDAHN 15 GROUP. Historical Asset Allocation by Portfolio Total Equity Total Domestic Equity Vanguard Total Stock Market (VITSX) Total International Equity RBC Global (Voyageur) Total Fixed Income Total Domestic Fixed Income Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Global Fixed Income Templeton Global Bond Fund (FBNRX) Total Real Estate American Core Realty Fund Intercontinental Total Other Fixed Income Crescent Direct Lending Fund Receipt & Disbursement Galliard Cash Total Fund Portfolio Mar -2015 22,185,810 60.89 24,646,342 63.62 18,989,619 49.02 18,989,619 49.02 5,656,723 14.60 5,656,723 14.60 9,849,159 25.42 7,934,130 20.48 4,720,906 12.19 1,190,074 3.07 2,023,149 5.22 1,270,903 3.28 1,270,903 3.28 3,587,476 9.26 1,307,320 3.37 2,280,157 5.89 644,126 1.66 644,126 1.66 658,824 1.70 - 0.00 38,741,801 100.00 Dec -2014 22,185,810 60.89 23,982,045 63.52 18,651,785 49.40 18,651,785 49.40 5,330,260 14.12 5,330,260 14.12 9,702,668 25.70 7,824,405 20.72 4,654,026 12.33 1,168,063 3.09 2,002,316 5.30 1,278,113 3.39 1,278,113 3.39 3,519,185 9.32 1,264,952 3.35 2,254,233 5.97 600,151 1.59 600,151 1.59 553,785 1.47 - 0.00 37,757,683 100.00 In Sep -2014 36,437,643 100.00 Jun -2014 22,185,810 60.89 16,779,784 46.05 16,779,784 46.05 5,406,026 14.84 5,406,026 14.84 7,150,591 19.62 5,789,056 15.89 4,603,250 12.63 1,185,806 3.25 - 0.00 1,361,535 3.74 1,361,535 3.74 2,996,295 8.22 824,333 2.26 2,171,962 5.96 - 0.00 - 0.00 4,104,947 11.27 - 0.00 36,437,643 100.00 Jun -2014 22,645,717 62.04 16,781,266 45.97 16,781,266 45.97 5,864,451 16.07 5,864,451 16.07 7,182,582 19.68 5,811,778 15.92 4,599,045 12.60 1,212,733 3.32 - 0.00 1,370,804 3.76 1,370,804 3.76 2,906,000 7.96 809,377 2.22 2,096,623 5.74 - 0.00 - 0.00 3,768,315 10.32 - 0.00 36,502,614 100.00 Asset Allocation History Total Fund As of March 31, 2015 Mar -2014 21,721,660 61.42 16,003,501 45.25 16,003,501 45.25 5,718,159 16.17 5,718,159 16.17 7,054,505 19.95 5,709,449 16.15 4,527,502 12.80 1,181,946 3.34 - 0.00 1,345,056 3.80 1,345,056 3.80 2,850,017 8.06 798,958 2.26 2,051,059 5.80 - 0.00 - 0.00 3,737,282 10.57 - 0.00 35,363,463 100.00 PSN THIS Q BOGDAHN � GROUP Historical Asset Allocation by Segment 90.0 75.0 60.0 c 0 0 45.0 Q 30.0 15.0 0.0 9/07 3/08 Domestic Equity Other Fixed Income 01r.] it I 3/09 9/09 International Equity Real Estate 3/10 9/10 3/11 Domestic Fixed Income Cash Equivalent 17 Asset Allocation History Total Fund As of March 31, 2015 r 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 Global Fixed Income PSN THIS Q BOGDAHN � GROUP Page Intentionally Left Blank 18 Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of March 31, 2015 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 O 12.0 O 4.0 O 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 49.02 (29) 14.60 (58) 20.48 (79) 3.28 (80) 1.66 (94) 9.26 (26) 1.70 (37) 5th Percentile 57.77 28.50 45.88 9.16 42.66 12.77 6.40 1 st Quartile 49.94 20.55 33.76 4.99 19.26 9.26 2.17 Median 42.60 15.13 27.25 4.52 11.30 5.86 1.19 3rd Quartile 31.28 13.11 21.80 3.74 4.75 4.60 0.58 95th Percentile 19.76 8.43 13.99 0.59 1.57 2.32 0.05 T uk: 19 BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31, 2015 Financial Reconciliation Quarter to Date Market Value 01/01/2015 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec./ Deprec. Market Value 03/31/2015 Total Equity 23,982,045 12,778 - 12,778 -829 132,886 532,239 24,646,342 Total Domestic Equity 18,651,785 - - - 89,283 248,551 18,989,619 Vanguard Total Stock Market (VITSX) 18,651,785 - - - 89,283 248,551 18,989,619 Total International Equity 5,330,260 12,778 - 12,778 -829 43,604 283,688 5,656,723 RBC Global (Voyageur) 5,330,260 12,778 - 12,778 -829 43,604 283,688 5,656,723 Total Fixed Income 9,702,668 33,521 -3,348 -146 19,148 97,315 9,849,159 Total Domestic Fixed Income 7,824,405 - -3,348 -146 8,694 104,524 7,934,130 Galliard Core Fixed Income 4,654,026 -3,348 - - 70,229 4,720,906 Galliard TIPS 1,168,063 - -146 2,673 19,484 1,190,074 Vanguard Short Term Bond Index (VSCSX) 2,002,316 - - 6,022 14,812 2,023,149 Total Global Fixed Income 1,278,113 - 10,454 10,454 -7,209 1,270,903 Templeton Global Bond Fund (FBNRX) 1,278,113 - 10,454 - 10,454 -7,209 1,270,903 Total Real Estate 3,519,185 -9,939 -3,605 15,220 66,615 3,587,476 American Core Realty Fund 1,264,952 -9,939 -3,605 15,220 40,692 1,307,320 Intercontinental 2,254,233 - - - 25,924 2,280,157 Total Other Fixed Income 600,151 43,975 - 644,126 Crescent Direct Lending Fund 600,151 43,975 - - - - 644,126 Receipt & Disbursement 553,785 - 36,361 693,643 - 541,869 - 10,390 15 658,824 Galliard Cash - - - - - - - - - Total Fund Portfolio 37,757,683 693,643 - 541,869 - 19,731 - 11,365 167,270 696,169 38,741,801 ORR PSN THIS Q BOGDAHN � GROUP Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To March 31, 2015 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2014 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec./ Deprec. Market Value 03/31/2015 Total Equity 22,185,810 1,025,948 - 25,948 -1,713 260,759 1,201,486 24,646,342 Total Domestic Equity 16,779,784 1,000,000 - - 187,804 1,022,031 18,989,619 Vanguard Total Stock Market (VITSX) 16,779,784 1,000,000 - - 187,804 1,022,031 18,989,619 Total International Equity 5,406,026 25,948 - 25,948 -1,713 72,955 179,455 5,656,723 RBC Global (Voyageur) 5,406,026 25,948 - 25,948 -1,713 72,955 179,455 5,656,723 Total Fixed Income 7,150,591 2,572,805 -3,348 -3,613 89,126 43,598 9,849,159 Total Domestic Fixed Income 5,789,056 2,000,000 -3,348 -3,613 17,805 134,229 7,934,130 Galliard Core Fixed Income 4,603,250 - -3,348 - - 121,005 4,720,906 Galliard TIPS 1,185,806 - - -3,613 4,864 3,016 1,190,074 Vanguard Short Term Bond Index (VSCSX) - 2,000,000 - 12,940 10,209 2,023,149 Total Global Fixed Income 1,361,535 - 71,321 71,321 - 90,632 1,270,903 Templeton Global Bond Fund (FBNRX) 1,361,535 - 71,321 - 71,321 - 90,632 1,270,903 Total Real Estate 2,996,295 418,338 - 28,013 47,344 153,513 3,587,476 American Core Realty Fund 824,333 418,338 -5,885 25,159 45,375 1,307,320 Intercontinental 2,171,962 - - 22,128 22,185 108,138 2,280,157 Total Other Fixed Income - 644,126 - - - 644,126 Crescent Direct Lending Fund - 644,126 - - - 644,126 Receipt & Disbursement 4,104,947 -4,017,091 1,662,402 - 1,074,079 - 17,450 95 658,824 Galliard Cash - - - - - - - Total Fund Portfolio 36,437,643 1,662,402 - 1,074,079 - 57,309 - 22,776 397,324 1,398,597 38,741,801 ON PSN THIS Q BOGDAHN � GROUP Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 2.23 (70) 4.73 Total Fund Policy 2.32 (61) 5.04 All Public Plans -Total Fund Median 2.44 (38) 4.71 Total Fund (New Mgrs) (Net) 2.23 (70) 4.73 Total Fund Policy 2.32 (61) 5.04 All Public Plans -Total Fund Median 2.44 4.71 Total Fund (Gross) 2.28 (65) 4.89 Total Fund Policy 2.32 (61) 5.04 All Public Plans -Total Fund Median 2.44 (9) 4.71 Total Fund (New Mgrs) (Gross) 2.28 (65) 4.89 Total Fund Policy 2.32 (61) 5.04 All Public Plans -Total Fund Median 2.44 (7) 4.71 Total Equity .0 6.48 Total Equity Policy 2.54 5.80 Total Domestic Equity 1.81 (51) 7.10 Total Domestic Equity Policy 1.80 (52) 7.13 IM U.S. Large Cap Core Equity (SA +CF) Median 1.82 (6) 6.96 Total International Equity 6.14 (16) 4.67 MSCI EAFE Index 5.00 (43) 1.29 IM International Large Cap Value Equity (SA +CF) Median 4.56 (85) 0.37 Total Fixed Income 1.20 ' 1.46 Total Fixed Policy 1.32 2.54 Total Domestic Fixed Income 1.45 (61) 2.13 Total Domestic Fixed Policy 1.32 (65) 2.54 IM U.S. Large Cap Core Equity (SA +CF) Median 1.82 (27) 6.96 Total Global Fixed Income 0.25 (44) -1.42 Total Global Fixed Income Policy -2.51 (98) -3.97 IM Global Fixed Income (MF) Median 0.06 -1.34 Total Real Estate 2.33 (100) 6.43 NCREIF Fund Index -ODCE (EW) (Net) 3.40 (51) 6.77 IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 Ann& 6.95 (50) 6.87 (61) 11.48 (9) 10.35 (18) 5.60 (66) 11/01/2000 (38) 8.43 (24) 11.44 (10) 10.95 (7) 5.3z) (85) 7.28 10.03 9.51 5.87 (50) 6.87 (61) 11.48 (9) 10.35 (18) 5.34 (54) 10/01/2007 (38) 8.43 (24) 11.44 (10) 10.95 (7) 6.36 (14) 7.28 10.03 9.51 5.41 (42) 7.18 (52) 11.98 (4) ' 10.97 (6) 6.28 (25) 11/01/2000 (38) 8.43 (24) 11.44 (10) 10.95 (7) 5.35 (85) 7.28 10.03 9.51 5.87 (42) 7.18 (52) 11.98 (4) 10.97 (6) 5.93 (27) 10/01/2007 (38) 8.43 (24) 11.44 (10) 10.95 (7) 6.36 (14) 7.28 10.03 9.51 5.41 8.77 Ann& 15.47 01/01/2001 9.34 14.87 12.88 4.95 (48) 12.30 (64) 15.71 (68) 13.98 (68) 6.24 (40) 11/01/2000 (47) 12.37 (63) 16.43 (55) 14.71 (53) 4.72 (89) 13.32 16.61 14.86 5.92 (13) -1.02 (49) 15.40 (4) 11.86 (4) 6.46 (67) 11/01/2000 (35) -0.48 (42) 9.52 (38) 6.64 (57) 4.50 (98) -1.11 8.78 6.88 6.83 3.28 2.59 4.08 5.31 11/01/2000 4.24 2.41 3.62 5.23 (97) 3.73 (98) 2.33 (100) 3.85 (100) 5.23 (76) 11/01/2000 (96) 4.24 (98) 2.41 (100) 3.62 (100) 5.23 (76) 13.32 16.61 14.86 5.92 (52) 1.28 (36) 4.23 (14) N/A 6.00 (9) 12/01/2011 (89) -5.50 (92) -1.64 (95) N/A -1.37 (95) -0.91 1.71 2.96 2.62 (71) 13.12 (62) 14.03 (46) 14.67 (63) 3.93 (34) 10/01/2007 (65) 13.46 (60) 12.66 (63) 14.52 (68) 3.36 (45) 14.14 13.78 15.76 3.16 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. r Intercontinental Returns are preliminary l 11 � Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 BOGLA �I GROUP Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global (Voyageur) 6.14 (16) 4.67 (13) -1.02 (49) 15.40 (4) 11.86 (4) 3.20 (18) 11/01/2007 MSCI EAFE Index 5.00 (43) 1.29 (35) -0.48 (42) 9.52 (38) 6.64 (57) -0.09 (76) IM International Large Cap Value Equity (SA +CF) Median 4.56 0.37 -1.11 8.78 6.88 0.60 Vanguard Total Stock Market (VITSX) 1.81 (56) 7.10 (45) 12.30 (28) N/A N/A 18.80 (41) 03/01/2013 Vanguard Total Stock Market Index Hybrid 1.81 (56) 7.14 (43) 12.33 (27) 16.44 (36) 14.79 (18) 18.85 k4 , IM U.S. Multi -Cap Core Equity (MF) Median 2.11 6.73 10.90 15.78 13.50 18.26 Galliard Core Fixed Income 1.51 (41) 2.63 (26) 4.42 (21) 2.93 (39) 4.13 (36) 4.59 (77) 10/01/2007 Barclays Intermediate Aggregate Index 1.32 (80) 2.54 (32) 4.24 (31) 2.41 (77) 3.62 (74) 4.56 (79) IM U.S. Intermediate Duration (SA +CF) Median 1.47 2.40 3.87 2.74 3.90 4.89 Vanguard Short Term Bond Index (VSCSX) 1.04 (54) N/A N/A N/A N/A 1.04 (54) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index 1.24 (19) 1.60 (20) 2.50 (27) 2.83 (20) 3.57 (29) 1.24 (19) IM U.S. Intermediate Investment Grade (MF) 1.06 1.32 1.95 1.97 2.93 1.06 Galliard TIPS 1.90 0.67 1.57 0.26 2.82 3.83 10/01/2007 Barclays U.S. TIPS 1 -10 Year 1.20 0.19 1.08 -0.05 2.85 3.88 Templeton Global Bond Fund (FBNRX) 0.25 (44) -1.42 (52) 1.28 (36) 4.24 (14) N/A 6.01 (9) 12/01/2011 Citigroup World Government Bond -2.51 (98) -3.97 (89) -5.50 (92) -1.64 (95) 1.42 (91) -1.37 (95) IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 2.62 American Core Realty Fund 4.46 (19) 6.33 (73) 12.97 (63) 12.27 (73) 13.43 (81) 3.18 (50) 10/01/2007 American Core Realty Policy 3.39 (51) 6.76 (65) 13.45 (60) 12.66 (63) 13.95 (77) 6.05 (11) IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 6.95 14.14 13.78 15.76 3.16 Intercontinental 1.15 (100) 6.04 (83) 12.72 (74) 14.71 (35) N/A 15.01 (54) 10/01/2010 NCREIF Fund Index -ODCE 3.40 (51) 6.77 (65) 13.46 (60) 12.66 (63) 14.52 (68) 13.82 (69) IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 6.95 14.14 13.78 15.76 15.20 Crescent Direct Lending Fund 0.00 N/A N/A N/A N/A 0.00 11/01/2014 Credit Suisse Leveraged Loan Index 2.07 1.82 2.95 5.40 5.39 1.52 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. n u�T Intercontinental Returns are preliminary 23 BOGLAl 11 � Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst �I GROUP Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 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) 4.73 (50) 11.85 (15) 15.72 (7) 18.95 (29) -1.17 (80) 10.67 (32) 0.70 (62) -16.84 (91) 13.03 (74) 7.89 (62) Total Fund Policy 5.04 (38) 11.38 (22) 15.06 (13) 19.59 (21) 2.53 (12) 9.13 (73) 0.33 (66) -12.11 (31) 11.97 (86) 9.55 (31) All Public Plans -Total Fund Median 4.71 10.10 12.52 17.89 0.32 9.89 1.55 -13.57 14.39 8.57 Total Fund (New Mgrs) (Net) 4.73 (50) 11.85 (15) 15.72 (7) 18.95 (29) -1.17 (80) 10.66 (32) 0.68 (63) -16.82 (91) N/A N/A Total Fund Policy 5.04 (38) 11.38 (22) 15.06 (13) 19.59 (21) 2.53 (12) 9.13 (73) 0.33 (66) -12.11 (31) 11.97 (86) 9.55 (31) All Public Plans -Total Fund Median 4.71 10.10 12.52 17.89 0.32 9.89 1.55 -13.57 14.39 8.57 Total Fund (Gross) F, 4.89 (42) 12.21 (9) 16.33 (5) 19.81 (17) -0.45 (68) 11.40 (CIO) 1.43 (52) -16.48 (89) 13.92 (58) 8.62 (50) Total Fund Policy 5.04 (38) 11.38 (22) 15.06 (13) 19.59 (21) 2.53 (12) 9.13 (73) 0.33 (66) -12.11 (31) 11.97 (86) 9.55 (31) All Public Plans -Total Fund Median 4.71 10.10 12.52 17.89 0.32 9.89 1.55 -13.57 14.39 8.57 Total Fund (New Mgrs) (Gross) 4.89 (42) 12.21 (9) 16.33 (5) 19.81 (17) -0.45 (68) 11.40 (20) 1.39 (52) -16.46 (89) N/A N/A Total Fund Policy 5.04 (38) 11.38 (22) 15.06 (13) 19.59 (21) 2.53 (12) 9.13 (73) 0.33 (66) -12.11 (31) 11.97 (86) 9.55 (31) All Public Plans -Total Fund Median 4.71 10.10 12.52 17.89 0.32 9.89 1.55 -13.57 14.39 8.57 Total Equity 6.48 15.46 � 27.08 -4.58 13.61 W - 1.09.61 10.83 Total Equity Policy 5.80 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 7.10 (48) 17.58 (70) 21.85 (36) 27.76 (63) -3.30 (90) 14.19 (7) -4.29 (37) -21.66 (63) 17.58 (43) 9.29 (69) Total Domestic Equity Policy 7.13 (47) 17.76 (68) 21.60 (38) 30.20 (45) 0.55 (57) 10.96 (30) -6.91 (63) -21.98 (68) 16.44 (60) 10.79 (49) IM U.S. Large Cap Core Equity (SA +CF) Median 6.96 19.25 20.75 29.77 1.14 9.45 -5.82 -20.44 16.98 10.77 Total International Equity 4.67 (13) 10.08 (9) 27.54 (16) 24.74 (3) -8.75 (53) 11.69 (14) 11.87 (21) -39.55 (100) 23.63 (55) 19.84 (68) MSCI EAFE Index 1.29 (35) 4.70 (63) 24.29 (40) 14.33 (53) -8.94 (56) 3.71 (66) 3.80 (67) -30.13 (70) 25.38 (39) 19.65 (70) IM International Large Cap Value Equity (SA +CF) Median 0.37 5.47 22.79 15.04 -8.43 5.00 6.27 -27.37 23.87 20.97 Total Fixed Income 1.46NW 3.21a -0.59 M 6.34 =7 10.53 0.64 4.96 3.27 Total Fixed Policy 2.54 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 2.13 (97) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (53) 10.53 (2) 0.64 (1) 4.96 (100) 3.27 (98) Total Domestic Fixed Policy 2.54 (96) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (14) 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 6.96 19.25 20.75 29.77 1.14 9.45 -5.82 -20.44 16.98 10.77 Total Global Fixed Income -1.42 (52) 6.31 (12) 3.53 (3) N/A N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -3.97 (89) -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 -1.34 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Total Real Estate 6.43 (71) 13.47 (41) 16.42 (17) 12.81 (54) 15.82 (77) 2.71 (77) -32.42 (35) 4.72 (38) N/A N/A NCREIF Fund Index -ODCE 6.77 (65) 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) 17.45 (55) IM U.S. Open End Private Real Estate (SA +CF) Median 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 Returns for periods greater than one year are annualized. Returns are expressed as 10/1/2007 inception date represents the date new managers were hired. Total Fund percentages. Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Intercontiner THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 24 n [ BOGLAl 11 u�T `� GROUP Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA +CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Barclays Intermediate Aggregate Index IM U.S. Intermediate Duration (SA +CF) Median Galliard TIPS Barclays U.S. TIPS 1 -10 Year Vanguard Short Term Bond Index (VSCSX) Barclays U.S. Corporate 1 -5 Year Index IM U.S. Intermediate Investment Grade (MF) Median Templeton Global Bond Fund (FBNRX) Citigroup World Government Bond IM Global Fixed Income (MF) Median American Core Realty Fund American Core Realty Policy IM U.S. Open End Private Real Estate (SA +CF) Median Intercontinental NCREIF Fund Index -ODCE IM U.S. Open End Private Real Estate (SA +CF) Median Crescent Direct Lending Fund Credit Suisse Leveraged Loan Index Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 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 N/A N/A N/A 33.21 (8) -1.17 (75) 11.93 (44) 0.53 (23) -15.13 (17) N/A N/A 8.81 (58) 19.15 (38) 19.27 (65) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) -20.88 (54) 19.35 (57) 6.04 (58) 9.21 18.01 20.39 27.57 1.36 11.31 -3.07 -20.37 20.21 6.80 4.67 (13) 10.08 (9) 27.54 (16) 24.74 (3) -8.75 (53) 11.69 (14) 11.87 (21) N/A N/A N/A 1.29 (35) 4.70 (63) 24.29 (40) 14.33 (53) -8.94 (56) 3.71 (66) 3.80 (67) -30.13 (70) 25.38 (39) 19.65 (70) 0.37 5.47 22.79 15.04 -8.43 5.00 6.27 -27.37 23.87 20.97 7.10 (45) 17.77 (26) N/A N/A N/A N/A N/A N/A N/A N/A 7.14 (43) 17.77 (26) 21.60 (63) 30.28 (17) 0.71 (21) 11.16 (29) -6.03 (59) -21.19 (32) 16.98 (46) 10.38 (29) 6.73 15.75 23.31 26.36 -1.88 9.66 -5.25 -22.84 16.64 9.05 2.63 (26) 3.15 (37) -0.64 (76) 5.82 (46) 4.16 (26) 9.63 (18) 12.08 (39) -1.68 (94) N/A N/A 2.54 (32) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (21) 7.52 (77) 9.69 (81) 4.16 (35) 5.33 (69) 3.84 (60) 2.40 2.87 -0.27 5.58 3.60 8.27 11.48 3.24 5.49 3.92 0.67 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A N/A 0.19 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.60 (20) 2.46 (27) 1.47 (15) 6.29 (30) 1.83 (58) 8.25 (38) 16.02 (2) -2.84 (74) 5.04 (13) 3.99 (7) 1.32 1.71 -0.47 5.13 1.99 7.53 10.58 -0.22 4.27 3.13 -1.42 (52) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A N/A -3.97 (89) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 5.90 (6) 8.69 (31) 2.23 (64) -1.34 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 6.33 (73) 12.49 (67) 12.27 (71) 11.56 (70) 16.11 (76) 2.71 (77) -32.42 (35) 4.72 (38) N/A N/A 6.76 (65) 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 5.84 (53) -22.09 (5) 5.27 (28) N/A N/A 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 6.04 (83) 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A N/A 6.77 (65) 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) 17.45 (55) 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.82 4.31 5.83 10.73 2.40 10.34 7.72 -7.68 4.07 6.43 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 u�T Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 25 [ HOGLAl 11 `� GROUP Performance Review Total Fund (Gross) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Total Fund (Gross) 37,758 694 -542 -20 -11 167 696 38,742 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Total Fund (Gross) 36,438 1,662 -1,074 -57 -23 397 1,399 38,742 Peer Group Analysis - All Public Plans -Total Fund 16.00 12.00 8.00 c K 4.00 0.00 -4.00 QTR • Total Fund (Gross) 2.28 (65) • Total Fund Policy 2.32 (61) Median 2.44 Comparative Performance • O • O 0 O O M Cummulative Performance $300.00 $250.00 O O O O $200.00 $150.00 $100.00 $50.00 $239.56 $0.00 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 3/15 Total Fund (Gross) � Total Fund Policy 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr ' Ending FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Jun -2014 Mar -2014 4.89 (42) 7.18 (52) 11.92 (11) 11.98 (4) 10.05 (8) 10.97 (6) 7.55 (3) 5.10 (44) 5.04 (38) 8.43 (24) 11.58 (16) 11.44 (10) 10.25 (5) 10.95 (7) All Public Plans -Total Fund Median 2.23 -1.13 4.71 7.28 10.10 10.03 8.38 9.51 $0.00 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 3/15 Total Fund (Gross) � Total Fund Policy 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Total Fund (Gross) 2.55 (36) -1.02 (47) 3.24 (79) 2.10 (22) 7.55 (3) 5.10 (44) Total Fund Policy 2.66 (32) -0.64 (24) 3.90 (32) 1.69 (52) 6.10 (31) 5.46 (26) All Public Plans -Total Fund Median 2.23 -1.13 3.63 1.71 5.59 4.94 o PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 24.0 Over 16.0 Performance N O C7 8.0 v 0.0 LL A -8.0 0 ~ -16.0 -16.0 -8.0 0.0 8.0 Total Fund Policy ( %) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 12.80 12.16 11.52 «' 10.88 v K 10.24 9.60 1 1 1 4.83 5.04 5.25 5.46 5.67 5.88 Risk (Standard Deviation %) Return Performance Review Total Fund (Gross) As of March 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years y 0.00 e6000988 000 e 8 6 e w 25.00 • 8 00 0 50.00 • 0 0 00 75.00 00 Under w Performance woo 100.00 16.0 24.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count N lb Total Fund (Gross) 20 • Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 11.52 11.04 O 10.56 «' 10.08 v K 9.60 9.12 1 1 1 6.09 6.30 6.51 8.75 9.00 9.25 9.50 9.75 10.00 10.25 10.50 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 14 (70 %) 2 (10 %) 4 (20 %) 0 (0 %) 12 (60 %) 6 (30 %) 2 (10 %) 0 (0 %) 9 • Total Fund (Gross) 11.98 6.18 • Total Fund (Gross) 10.97 10.29 O Total Fund Policy 11.44 5.12 O Total Fund Policy 10.95 9.30 Median 10.03 5.10 Median 9.51 9.10 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 1.53 109.57 168.67 -1.45 0.36 1.88 1.18 2.00 Total Fund Policy 0.00 100.00 100.00 0.00 2.16 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) 1.81 105.39 117.99 -0.90 0.07 1.07 1.09 6.04 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 5.24 27 PSN THIS Q BOGDAHN � GROUP Performance Review Vanguard Total Stock Market (VITSX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Vanguard Total Stock Market (VITSX) 18,652 89 249 18,990 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Vanguard Total Stock Market (VITSX) 16,780 1,000 188 1,022 18,990 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) K 28.00 Cumulative Performance $150.00 20.00 1 Qtr 1 Qtr 1 Qtr 1 Qtr • • 1 Qtr $135.00 Ending C' Ending Ending Ending � 0 0 ■12.00 Dec -2014 Sep -2014 00 Mar -2014 $120.00 4.00 I 5.20 (36) -0.01 (31) OO 2.04 (47) 10.08 (36) 6.29 (61) Vanguard Total Stock Market Index Hybrid 5.24 (33) -0.02 (31) $105.00 -4.00 10.09 (36) 6.29 (60) IM U.S. Multi -Cap Core Equity (MF) Median 12.00 -0.77 4.49 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR $137.58 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 • Vanguard Total Stock Market (VITSX) 1.81 (56) 7.10 (45) 12.30 (28) 17.38 (39) N/A N/A N/A O Vanguard Total Stock Market Index Hybrid 1.81 (56) 7.14 (43) 12.33 (27) 17.42 (38) 16.44 (36) 14.09 (23) 14.79 (18) - Vanguard Total Stock Market (VITSX) Median 2.11 6.73 10.90 16.70 15.78 12.86 13.50 - Vanguard Total Stock Market Index Hybrid Comparative Performance 7%� Tum 28 /( BOGDAHN GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Vanguard Total Stock Market (VITSX) 5.20 (36) -0.01 (31) 4.86 (34) 2.04 (47) 10.08 (36) 6.29 (61) Vanguard Total Stock Market Index Hybrid 5.24 (33) -0.02 (31) 4.87 (33) 2.04 (47) 10.09 (36) 6.29 (60) IM U.S. Multi -Cap Core Equity (MF) Median 4.42 -0.77 4.49 1.98 9.64 6.80 7%� Tum 28 /( BOGDAHN GROUP Page Intentionally Left Blank THE 29 BOGDAHN GROUP. Performance Review RBC Global (Voyageur) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 RBC Global (Voyageur) 5,330 13 -13 -1 44 284 5,657 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 RBC Global (Voyageur) 5,406 26 -26 -2 73 179 5,657 Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 28.00 20.00 • 12.00 O O ' 4.00 C' O O v K Q -4.00 O C -12.00 -20.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global (Voyageur) 6.14 (16) 4.67 (13) -1.02 (49) 12.39 (10) 15.40 (4) 9.81 (9) 11.86 (4) • MSCI EAFE Index 5.00 (43) 1.29 (35) -0.48 (42) 8.40 (51) 9.52 (38) 5.61 (46) 6.64 (57) Median 4.56 0.37 -1.11 8.44 8.78 5.48 6.88 Comparative Performance Cumulative Performance $175.00 $150.00 $125.00 $100.00 $75.00 $50.00 $25.00 - 0.63 5.02 $0.00 1 1 1----1 T 1 1 1 1 12/07 12/08 12/09 12/10 12/11 12/12 12/13 3/15 RBC Global (Voyageur) - MSCI EAFE Index 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 RBC Global (Voyageur) -1.39 (14) -7.80 (94) 2.57 (82) 4.15 (6) 11.77 (1) 8.88 (80) MSCI EAFE Index -3.53 (49) -5.83 (62) 4.34 (43) 0.77 (63) 5.75 (59) 11.61 (35) IM International Large Cap Value Equity (SA +CF) Median -3.73 -5.61 4.11 1.20 6.11 10.84 W PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 45.0 Over Performance 'w 30.0 � a 0 O 15.0 O 000 a 0 0o 0 0.0 U m K 15.0 1 -15.0 0.0 15.0 30.0 MSCI EAFE Index ( %) • Over Performance + Earliest Date X Latest Date Performance Review RBC Global (Voyageur) As of March 31. 2015 Peer Group Scatterg ram - 3 Years 18.00 15.00 0 12.00 v 9.00 6.00 1 1 1 1 10.56 10.89 11.22 11.55 11.88 12.21 Risk (Standard Deviation %) Return Standard Deviation lb RBC Global (Voyageur) 18 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 14.00 12.00 10.00 ' 8.00 v K 6.00 12.54 15.50 16.12 16.74 17.36 17.98 18.60 19.22 Risk (Standard Deviation %) Return Standard Deviation 15 (83 %) 2 (11%) 1 (6 %) 0 (0 %) 0 (0 %) 6 (30 %) 12 (60 %) 2 (10 %) N 19.84 • RBC Global (Voyageur) 3 Yr Rolling Percentile Ranking - 5 Years 12.31 O RBC Global (Voyageur) 11.86 y 0.00 9.52 0 0 0 00 0 0 0 0 0 0 / Median 8.78 10.93 0 0 0 6.88 16.36 Historical Statistics - 3 Years w O Tracking Up _ 25.00 Information O Downside Error Market Market c Ratio O Beta Risk Capture 0 0 50.00 RBC Global (Voyageur) 4.77 0 0 0 0 0 0 1.13 EL 0.99 8.31 Q 0 0 0 0 0 1.00 8.23 Historical Statistics - 5 Years 0 e 75.00 00 O 0 O Information Sharpe Downside K Market Market Alpha Ratio Ratio Beta Risk Capture 100.00 Under T Performance 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 45.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count Peer Group Scatterg ram - 3 Years 18.00 15.00 0 12.00 v 9.00 6.00 1 1 1 1 10.56 10.89 11.22 11.55 11.88 12.21 Risk (Standard Deviation %) Return Standard Deviation lb RBC Global (Voyageur) 18 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 14.00 12.00 10.00 ' 8.00 v K 6.00 12.54 15.50 16.12 16.74 17.36 17.98 18.60 19.22 Risk (Standard Deviation %) Return Standard Deviation 15 (83 %) 2 (11%) 1 (6 %) 0 (0 %) 0 (0 %) 6 (30 %) 12 (60 %) 2 (10 %) N 19.84 • RBC Global (Voyageur) 15.40 12.31 O RBC Global (Voyageur) 11.86 19.09 O MSCI EAFE Index 9.52 10.87 O MSCI EAFE Index 6.64 16.50 Median 8.78 10.93 Median 6.88 16.36 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.77 116.00 86.19 5.63 1.13 1.13 0.99 8.31 MSCI EAFE Index 100.00 - 1.00 8.23 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.71 115.32 94.15 4.76 0.90 0.70 1.06 11.17 MSCI EAFE Index .0 100.00 100.00 1 1.00 10.78 ca THIS (7 BOGDAHN `� GROUP Performance Review Galliard Core Fixed Income As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Galliard Core Fixed Income 4,654 -3 70 4,721 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Galliard Core Fixed Income 4,603 -3 121 4,721 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 8.00 6.00 4.00 00 0 2.00 0 • 00 0.00 -2.00 Cumulative Performance $150.00 $135.00 0 0 $120.00 $105.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Income 1.51 (41) 2.63 (26) 4.42 (21) 2.18 (41) 2.93 (39) 3.81 (37) 4.13 (36) • Barclays Intermediate Aggregate Index 1.32 (80) 2.54 (32) 4.24 (31) 2.10 (49) 2.41 (77) 3.34 (71) 3.62 (74) Median 1.47 2.40 3.87 2.09 2.74 3.60 3.90 Comparative Performance §1s9:9b $90.00 1 1 1 fir- 1 9/07 9/08 9/09 9/10 9/11 9/12 9/13 3/15 Galliard Core Fixed Income Barclays Intermediate Aggregate Index 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Galliard Core Fixed Income 1.10 (24) 0.09 (25) 1.65 (23) 1.43 (30) -0.05 (84) 0.58 (79) Barclays Intermediate Aggregate Index 1.20 (18) 0.03 (39) 1.62 (27) 1.20 (52) -0.14 (93) 0.76 (42) IM U.S. Intermediate Duration (SA +CF) Median 0.91 0.00 1.40 1.22 0.21 0.72 32 THIS (7 BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years w 12.5 Up B Over Performance 10.0 Sharpe c • 7.5 Market 2! + • w 5.0 0 O U .0 2.5 ° ° A 0.0 Capture 0.0 2.5 5.0 7.5 Barclays Intermediate Aggregate Index ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 3.20 1.28 0000 3.00 O 100.00 2.80 0.00 «' 2.60 v .18 Historical Statistics - 5 Years 2.40 O 75.00 °O 0000 2.20 1.80 1.85 1.90 1.95 2.00 Tracking Risk (Standard Deviation %) OOO° Return Performance Review Galliard Core Fixed Income As of March 31. 2015 • Galliard Core Fixed Income 2.93 2.08 • Galliard Core Fixed Income 4.13 2.32 • Barclays Intermediate Aggregate Index 2.41 1.86 • Barclays Intermediate Aggregate Index 3.62 2.16 Median 2.74 1.92 Median 3.90 2.29 Historical Statistics - 3 Years 3 Yr Rolling Percentile Ranking - 5 Years Up Down Information Sharpe y 0.00 Error Market Market Alpha Ratio w 25.00 O ° ° O ° ° Capture Capture O ° 0.40 Q 100.52 50.00 00 1.26 1.28 0000 O 100.00 °0080 0.00 .18 Historical Statistics - 5 Years 75.00 °O 0000 Tracking Up OOO° OOOO Information Sharpe Under w Error Market Market Alpha Ratio Performance 100.00 Capture Capture ' • 10.0 12.5 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Total 5 -25 25- Median Median -75 75 -95 Period Count Count Count Count 1p Galliard Core Fixed Income 19 6(32%) 11 (58 %) 0(0%) 2 (11 %) • Barclays Intermediate Aggregate Index 20 0(0%) 0(0%) 10(50%) 10(50%) Peer Group Scatterg ram - 5 Years 4.40 O 4.20 O 4.00 «' 3.80 v 3.60 O 3.40 2.05 2.10 2.15 2.12 2.16 2.20 2.24 2.28 2.32 2.36 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Galliard Core Fixed Income 2.93 2.08 • Galliard Core Fixed Income 4.13 2.32 • Barclays Intermediate Aggregate Index 2.41 1.86 • Barclays Intermediate Aggregate Index 3.62 2.16 Median 2.74 1.92 Median 3.90 2.29 Historical Statistics - 3 Years Galliard Core Fixed Income 0.60 107.84 93.42 0.46 0.83 1.82 1.01 1.09 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 1.00 1.04 33 PSN THIS Q BOGDAHN � GROUP Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.40 111.92 100.52 0.36 1.26 1.28 1.06 1.24 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 0.00 .18 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Income 0.60 107.84 93.42 0.46 0.83 1.82 1.01 1.09 Barclays Intermediate Aggregate Index 0.00 100.00 100.00 1.00 1.04 33 PSN THIS Q BOGDAHN � GROUP Performance Review Galliard TIPS As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Galliard TIPS 1.168 3 19 1.190 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Galliard TIPS 1.186 -4 5 3 1.190 Peer Group Analysis - IM U.S. TIPS (SA +CF) 8.00 5.00 E ' 2.00 0 p 1 Qtr 1 Qtr O Ending Ending Ending O Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 O Sep -2013 -1.00 -1.94 2.90 1.17 -1.46 0.97 -4.00 i QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard TIPS 1.90 (1) 0.67 (73) 1.57 (73) -1.72 (35) 0.26 (70) 1.94 (80) 2.82 (91) • Barclays U.S. TIPS 1 -10 Year 1.20 (90) 0.19 (86) 1.08 (90) -1.97 (79) -0.05 (88) 1.89 (90) 2.85 (91) Median 1.44 1.35 2.93 -1.80 0.63 3.41 4.30 Comparative Performance Cumulative Performance $150.00 $135.00 $120.00 $105.00 - /-\ $90.00 1 1 1 --r- 9/07 9/08 9/09 9/10 9/11 9/12 9/13 3/15 Galliard TIPS Barclays U.S. TIPS 1 -10 Year 99 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Galliard TIPS -1.21 -1.94 2.90 1.17 -1.46 0.97 Barclays U.S. TIPS 1 -10 Year 0.92 34 PSN THIS Q BOGDAHN � GROUP Performance Review Galliard TIPS As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years Tracking 3 Yr Rolling Percentile Ranking - 5 Years Down Information Sharpe 12.0 Downside y 0.00 Market Market Alpha Ratio Over Beta Risk Capture Capture Performance A K Galliard TIPS 1.01 102.64 96.18 .-. 9.0 0.32 0.07 w 25.00 2.97 Barclays U.S. TIPS 1 -10 Year 100.00 Q- 6.0 0.00 N/A 50.00 1.00 Historical Statistics - 5 Years v A 3.0 a 75.00 _ 0.0 Up Down 01513 gage ee00 Q e 0 Error Under 100.00 . Ratio Ratio Beta Risk Performance 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 -3.0 � -3.0 0.0 3.0 6.0 9.0 12.0 Total Period 5 -25 25- Median Median -75 75 -95 Barclays U.S. TIPS 1 -10 Year ( %) Count Count Count Count Under Performance Earliest Date Latest Date Galliard TIPS 19 0 (0 %) 0 (0 %) 1 (5 %) 18 (95 %) : Barclays U.S. TIPS 1 -10 Year 20 0 (0 %) 0 (0 %) 0 (0 %) 20(100%) Peer Group Scatterg ram - 3 Years Peer Group Scatterg ram - 5 Years 0.90 4.90 is 0.60 .... 4.41 3.92 E 0.30 • v v 3.43 0.00 O 2.94 /'I -0.30 1 1 1 1 1 1 1 1 3.91 4.14 4.37 4.60 4.83 5.06 5.29 5.52 5.75 3.64 3.90 4.16 4.42 4.68 4.94 5.20 5.46 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Galliard TIPS 0.26 4.40 • Galliard TIPS 2.82 3.88 O Barclays U.S. TIPS 1 -10 Year -0.05 4.25 O Barclays U.S. TIPS 1 -10 Year 2.85 3.86 Median 0.63 5.47 Median 4.30 5.23 Historical Statistics - 3 Years Galliard TIPS 1.05 98.05 97.30 -0.04 -0.03 0.72 1.00 2.45 Barclays U.S. TIPS 1 -10 Year 100.00 100.00 2., 35 THIS BOGDAHN a'� GROUP Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.01 102.64 96.18 0.32 0.32 0.07 1.04 2.97 Barclays U.S. TIPS 1 -10 Year 100.00 100.00 0.00 N/A -0.01 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.05 98.05 97.30 -0.04 -0.03 0.72 1.00 2.45 Barclays U.S. TIPS 1 -10 Year 100.00 100.00 2., 35 THIS BOGDAHN a'� GROUP Performance Review Templeton Global Bond Fund (FBNRX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Templeton Global Bond Fund (FBNRX) 1,278 -10 10 -7 1,271 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Templeton Global Bond Fund (FBNRX) 1,362 -71 71 -91 1,271 Peer Group Analysis - IM Global Fixed Income (MF) 12.00 1 Qtr 1 Qtr 1 Qtr 1 Qtr 8.00 1 Qtr Ending Ending 4.00 Ending Ending Ending . E Sep -2014 • Mar -2014 Dec -2013 ! 0.00 v O -1.67 (74) 0.06 (15) O K C 1 1.09 (49) O Q -1.49 (70) -4.00 2.27 (54) ■ -1.09 (90) 2.88 (3) -8.00 -1.06 -1.71 2.39 2.42 -12.00 1.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Cumulative Performance $136.00 $128.00 $120.00 $112.00 $104.00 .40 $96.00 4.68 $88.00 1 1 1 1 1 12/11 6/12 12/12 6/13 12/13 6/14 3/15 • Templeton Global Bond Fund (FBNRX) 0.25 (44) -1.42 (52) 1.28 (36) 1.53 (36) 4.24 (14) N/A N/A O Citigroup World Government Bond -2.51 (98) -3.97 (89) -5.50 (92) -2.12 (84) -1.64 (95) 0.01 (89) 1.42 (91) - Templeton Global Bond Fund (FBNRX) Median 0.06 -1.34 -0.91 0.18 1.71 2.23 2.96 - Citigroup World Government Bond Comparative Performance THIS 36 (� BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Templeton Global Bond Fund (FBNRX) -1.67 (74) 0.06 (15) 2.68 (41) 0.75 (95) 2.72 (1) 1.09 (49) Citigroup World Government Bond -1.49 (70) -3.78 (91) 2.27 (54) 2.66 (41) -1.09 (90) 2.88 (3) IM Global Fixed Income (MF) Median -1.06 -1.71 2.39 2.42 0.64 1.00 THIS 36 (� BOGDAHN `� GROUP Page Intentionally Left Blank THE 37 BOGDAHN GROUP. Performance Review American Core Realty Fund As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 American Core Realty Fund 1,265 -10 -4 15 41 1,307 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 American Core Realty Fund 824 418 -6 25 45 1,307 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 32.00 26.00 20.00 E 14.00 L • O • •� • 8.00 mom 2.00 -4.00 - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Cumulative Performance $175.00 $155.40 $150.00 $126.43 $125.00 $100.00 - v $75.00 - $50.00 1 1 1 1 1 1 9/07 9/08 9/09 9/10 9/11 9/12 9/13 3/15 • American Core Realty Fund 4.46 (19) 6.33 (73) 12.97 (63) 13.06 (75) 12.27 (73) 12.56 (76) 13.43 (81) O American Core Realty Policy 3.39 (51) 6.76 (65) 13.45 (60) 13.61 (68) 12.66 (63) 13.16 (69) 13.95 (77) - American Core Realty Fund Median 3.42 6.95 14.14 14.31 13.78 14.29 15.76 - American Core Realty Policy Comparative Performance . 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 American Core Realty Fund 1.80 (97) 3.36 (48) 2.80 (65) 3.20 (39) 2.59 (77) 3.40 (54) American Core Realty Policy 3.26 (54) 3.24 (56) 2.93 (60) 2.52 (62) 3.17 (52) 3.56 (50) IM U.S. Open End Private Real Estate (SA +CF) Median 3.41 3.33 3.15 2.81 3.22 3.54 PSN THIS 38 i BOGDAHN `-'O* GROUP 3 Yr Rolling Under /Over Performance - 5 Years 20.0 Over O Performance c LL 10.0 r A � K v 0.0 0 • U • • -10.0 U E " -20.0 -20.0 -10.0 0.0 10.0 American Core Realty Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 14.50 14.00 13.50 «' 13.00 K 12.50 O 0 12.00 0.60 0.80 1.00 1.20 1.40 Risk (Standard Deviation %) Return Performance Review American Core Realty Fund As of March 31. 2015 • American Core Realty Fund 3 Yr Rolling Percentile Ranking - 5 Years 1.28 • American Core Realty Fund 13.43 y 0.00 0 0 0 0 0 0 O American Core Realty Policy 12.66 0.88 • American Core Realty Policy 0 1.35 Median 13.78 w 25.00 Median 15.76 3.10 Historical Statistics - 3 Years ° ° 0 50.00 0 0 0 Tracking Up Down Information ° °°° 0 0015 e 0 Market 75.00 Alpha Ratio 0 8 8 v 8 Capture K American Core Realty Fund 1.21 97.06 N/A Under 100.00 0.62 0.00 American Core Realty Policy 0.00 Performance 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 20.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Information * American Core Realty Fund 19 0 (0 %) 4 (21 %) 8 (42 %) 7 (37 %) Market O American Core Realty Policy 19 7 (37 %) 1 (5 %) 10 (53 %) 1 (5 %) Peer Group Scatterg ram - 5 Years Capture Capture 16.72 15.96 15.20 «' 14.44 p 13.68 Q 12.92 1.60 1.80 0.99 1.32 1.65 1.98 2.31 2.64 2.97 3.30 3.63 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • American Core Realty Fund 12.27 1.28 • American Core Realty Fund 13.43 1.43 O American Core Realty Policy 12.66 0.88 • American Core Realty Policy 13.95 1.35 Median 13.78 1.52 Median 15.76 3.10 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 1.21 97.06 N/A 4.36 -0.29 9.10 0.62 0.00 American Core Realty Policy 0.00 100.00 0.00 N/A 13.51 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core Realty Fund 1.22 96.47 N/A 4.19 -0.39 9.02 0.65 0.00 American Core Realty Policy 0.00 100.00 0.00 KE THIS BOGDAHN a'� GROUP Performance Review Intercontinental As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Intercontinental 2,254 26 2,280 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Intercontinental 2,172 -22 22 108 2,280 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 32.00 26.00 20.00 E ! 14.00 K me 8.00 00 O 2.00 O -4.00 9) O QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 1.15 (100) 6.04 (83) 12.72 (74) 14.40 (49) 14.71 (35) 14.67 (46) N/A • NCREIF Fund Index -ODCE (VV) 3.39 (51) 6.76 (65) 13.45 (60) 13.61 (68) 12.66 (63) 13.16 (69) 14.52 (68) Median 3.42 6.95 14.14 14.31 13.78 14.29 15.76 Comparative Performance Cumulative Performance ■ $225.00 $200.00 $175.00 $150.00 $125.00 J $100.00 $75.00 r-- 1 1 9/10 6/11 3/12 12/12 9/13 6/14 3/15 Intercontinental NCREIF Fund Index -ODCE (VVV) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Intercontinental 4.83 (16) 3.79 (24) 2.42 (90) 1.89 (81) 5.35 (3) 3.66 (43) NCREIF Fund Index -ODCE (VV) 3.26 (54) 3.24 (56) 2.93 (60) 2.52 (62) 3.17 (52) 3.56 (50) IM U.S. Open End Private Real Estate (SA +CF) Median 3.41 3.33 3.15 2.81 3.22 3.54 40 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over Performance °- 16.0 a c M w (A r 14.0 0 U c 12.0 Under Performance 10.0 10.0 12.0 14.0 16.0 18.0 NCREIF Fund Index -ODCE (VW) ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 15.84 15.12 14.40 • «' 13.68 v K 12.96 � • 12.24 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60 Risk (Standard Deviation %) Return Standard Deviation Performance Review Intercontinental As of March 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years y 0.00 • NCREIF Fund Index -ODCE (VW) 12.66 0.88 O NCREIF Fund Index -ODCE (VW) 14.52 1.67 Median 13.78 1.52 Median 15.76 3.10 Historical Statistics - 3 Years A w 25.00 Error Market O 00000 Alpha - Ratio Risk p Capture Capture 50.00 .0000000 0O0 OO Intercontinental E 115.65 N/A 12.49 OOOOOOOO 4.84 0.17 0.00 75.00• 0.00 100.00 N/A 0.00 K 1.00 -j Historical Statistics - 5 Years 100.00 Tracking Up 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Error Market 5 -25 25- Median Median -75 75 -95 Beta Risk Total Period Capture Capture Count Count Count Count lb Intercontinental 7 1 (14 %) 6(86%) 0(0%) 0 (0 %) • NCREIF Fund Index -ODCE (VW) 20 0(0%) 10(50%) 10(50%) 0 (0 %) Peer Group Scatterg ram - 5 Years 15.99 15.58 15.17 «' 14.76 14.35 p 13.94 1 1 1 1 1.35 1.62 1.89 2.16 2.43 2.70 2.97 3.24 3.51 Risk (Standard Deviation %) Return Standard Deviation • Intercontinental 14.71 2.89 • Intercontinental N/A N/A • NCREIF Fund Index -ODCE (VW) 12.66 0.88 O NCREIF Fund Index -ODCE (VW) 14.52 1.67 Median 13.78 1.52 Median 15.76 3.10 Historical Statistics - 3 Years Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -ODCE (VV) 0.00 100.00 N/A 0.00 8.30 1.00 0.00 41 THE �BOGDAHN '� GROUP. Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.97 115.65 N/A 12.49 0.64 4.84 0.17 0.00 NCREIF Fund Index -ODCE (VV) 0.00 100.00 N/A 0.00 13.51 1.00 -j Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -ODCE (VV) 0.00 100.00 N/A 0.00 8.30 1.00 0.00 41 THE �BOGDAHN '� GROUP. Page Intentionally Left Blank 42 Total Fund Policy 60.00 Allocation Mandate Weight ( %) Jan -1976 20.00 S &P 500 Index 65.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 5.00 Oct -2003 S &P 500 Index 60.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 Sep -2006 S &P 500 Index 60.00 Barclays Intermediate Aggregate Index 40.00 Oct -2009 20.00 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 25.00 MSCI EAFE Index 15.00 Barclays U.S. Treasury: U.S. TIPS Index 5.00 NCREIF Property Index 5.00 Oct -2010 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 NCREIF Fund Index -ODCE (VVv) 10.00 Vanguard Total Stock Market Policy Allocation Mandate Weight ( %) 'un -200? MSCI US Broad Market Index 100.00 Benchmark Historical Hybrid Compositions Total Fund As of March 31, 2015 Total Equity Policy Allocation Mandate Weight ( %) Jan -1970 S &P 500 Index 90.00 MSCI EAFE Index 10.00 Oct -2003 S &P 500 Index 85.00 MSCI EAFE Index 15.00 S &P 500 Index 100.00 Oct -2009 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 Total Domestic Equity Policy Allocation Mandate Weight ( %) Jan -1926 S &P 500 Index 100.00 Oct -2009 Russell 3000 Index 100.00 Total Fixed Income Policy Allocation Mandate Weight ( %) Nov -2000 Barclays Aggregate Index 100.00 Sep -200 Barclays Intermediate Aqqreqate 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 (VVv) 100.00 r uk: 43 BOGDAHN GROUP. Compliance Checklist Total Fund Winter Springs GE As of March 31, 2015 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: 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: 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: 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager ranked within the top 40th percentile over the trailing three year period. 4. Manager ranked within the top 40th percentile over the trailing five year period. 5. Less than four consecutive quarters of under performance relative to the benchmark. 6. Three year down - market capture ratio less than the index. Manager Compliance: 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. 44 Yes No NIA Yes No NIA Vanguard RBC Global Gaillard TIPS VSCSX Yes No NIA Yes No NIA Yes No NIA Yes No NIA Templeton American RE Intercontinental Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA Department: Tit Direct Phone: Performance Measurement Performance Analyst 407 -520 -5355 NickR @bogdahngroup.com Direct Phone: E� 45 Department: Direct Phone: Address: Phone: Service Team Group Email: 1 The Bogdahn Group Your Service Team Contact Information Consultant Team Senior Consultant 863 - 904 -0858 DaveW @bogdahngroup.com 4901 Vineland Road, Suite 600 Orlando, Florida 32811 ServiceTeam003@bogdahngroup.com THE BOGDAHN \J GROUP. Disclosures Total Fund As of March 31, 2015 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. THE: 46 BOGDAHN GROUP. 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 47 [� BOGDAHN `� GROUP Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S &P Indices constitutes an offer of services in jurisdictions where S &P Indices does not have the necessary licenses. All information provided by S &P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. Tum 48 [� BOGDAHN `� GROUP THE BOGDAHN GROUP, sinlpfif hl q your investment and fflneim ►' [ ecislollS Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Cleveland I Milwaukee Pittsburgh