Loading...
HomeMy WebLinkAbout2015 08 18 Regular 600 Quarterly Investment Performance ReviewWWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 2nd Quarter 2015 7��THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 2nd Quarter 2015 Market Environment Fuk: r BOGDAHN GROUP. ■ Investment returns during the second quarter of 2015 were flat to modestly positive for equity and negative for fixed income indices. Domestically, macroeconomic data was mixed throughout the quarter as improvements in unemployment rate, retail sales, and consumer confidence were offset by a negative first quarter gross domestic product (GDP), a strong dollar, and slowing corporate earnings. The majority of the quarter played out as a low- volatility, upward- trending market; however, as the quarter came to a close, geopolitical concerns regarding Greece's default on a $1.713 payment to the IMF took center stage. This uncertainty sent ripples throughout the financial markets and risk assets sold off. ■ While the S &P 500 reached new highs during the quarter, as noted, performance for the quarter was muted. At the index level, small cap companies outperformed large cap companies for the third consecutive quarter, but mid cap companies underperformed and posted negative absolute returns for the period. ■ Non -U.S. equity indices provided the strongest returns during the quarter in U.S. dollar (USD) terms but continued to lag their domestic counterparts for the trailing one -year period. In a reversal of recent trends, the U.S. dollar (USD) depreciated approximately 4.0% versus the euro during the quarter. ■ An improving domestic economy fueled speculation that the Federal Reserve (Fed) would, by the end of 2015, move to increase short -term interest rates for the first time in almost a decade. As a result, interest rates increased during the quarter, leading to poor performance across fixed income indices. The impact of rising rates was felt more prominently at the long end of the yield curve, which "steepened" the 2 to 30 year spread by 49 basis point (bps). As a result, performance of longer -date issues suffered more than short maturities. For corporate bonds, an influx of new issues caused spreads to widen relative to Treasuries, resulting in weaker performance for corporate bonds relative to U.S. government issues. 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 June 30, 2015 Quarter Performance 1. pro 1.s�ro -1.1% C -0.7% -3.2% 3 -Month T -Bill -4.0% -2.0% 1 -Year Performance 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 -5.3% 1 -4.2% -5.1 % F 3 -Month T -Bill -7.0% -1.7% 0.5% 0.6% 10.7% j 0.3% 0.1% 0.1% 0.0% 0.0% 1.9. 2. pro 2.3% 0.8% 0.4% 2.0% . 7.4% 7.3% 7.4% 6.6% 6.5% -5.0% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% Source: Investment Metrics THE, 2 BOGDAHN GROUP. ■ Performance in domestic equity indices was muted for the quarter as solid gains realized during April and May were largely given back during the latter half of June on headline geopolitical concerns. The Russell 1000 and 3000 indices all finished modestly positive, with little differentiation between growth, value, and core styles. The Russell 1000 index series each returned 0.1% for the quarter while the Russell 3000 Growth Index outpaced its value counterpart by 0.2 %. • Outside of geopolitical factors impacting equity performance, there were two notable trends in U.S. domestic equities in the second quarter of 2015. First, mid cap indices underperformed large and small cap indices. This trend was somewhat unusual since mid cap stocks tend to have performance between their large cap and small cap peers. Second, growth stocks outperformed value stocks across the capitalization spectrum. ■ Based on 20 -year average P/E ratios, the current P/E for the large cap core and small cap growth indices were roughly in -line with long -term averages. For value indices, current valuations appeared extended. Similar to value, the small and mid cap core indices were also elevated relative to 20 -year averages. In contrast, current P/E valuations in large and mid cap growth stocks were below their long -term averages. Large cap growth stocks, in particular, appeared undervalued at just 88% of the long -term P/E average. ■ On a trailing one -year basis, growth indices showed a substantial return premium over value benchmarks across the capitalization spectrum. The Market Environment Domestic Equity Style Index Performance As of June 30, 2015 Quarter Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value -2.0% MidCap Index MidCap Growth 1.1% 2000 Value 2000 Index 2000 Growth 1.2% 0.0% 0.1% 1 0.3% 0.1% 0.1% 0.1% 0.4% 2.0% -3.0% -1.0% 1.0% 3.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Source: Investment Metrics THE, 3 BOGDAHN GROUP. ■ Sector performance was split for large cap stocks with five of the ten GICS sectors posting positive returns and five falling into negative territory for the quarter. Health care again posted the strongest sector result for the quarter as well as for the year with returns of 3.1% and 25.8% respectively. In contrast, utilities posted the weakest performance for the quarter with a return of -6.3% and second weakest performance for the trailing one -year period with a return of -6.9 %. The energy sector continued to falter with a return of -2.0% for the quarter and a staggering -23.1% for the one -year trailing period. ■ Similar to large cap, small cap performance for both the quarter and year was led by the health care sector with returns of 5.9% and 35.6% respectively. Information technology also posted strong relative performance, returning 2.1% for the quarter and 12.9% for the one -year period. Seven of the ten GICS sectors within small cap equities were negative during the second quarter with utilities ( -6.9 %) and materials ( -4.6 %) reporting the weakest performance. While the materials ( -8.5 %) and industrials ( -1.0 %) sectors were also negative on a one -year basis, the energy sector represents the real standout with a trailing one -year return of - 46.2 %. The same five sectors driving performance in the Russell 1000 Index (health care, information technology, consumer discretionary, consumer staples, and financials) were also major contributors to the Russell 2000's one -year performance. ■ Using the S &P 500 as a proxy, based on trailing P /E, four sectors had valuations lower than their 20 -year averages, one sector is fairly valued, and five sectors had valuations above their 20 -year average. The information technology and energy sectors were the most undervalued versus historical data, while telecom services and utilities were the most overvalued based on their long -term average P/E ratios. Consumer Disc (13.0 %) Consumer Staples (8.8 %) Energy (7.7 %) Financials (17.0 %) Health Care (14.4 %) Industrials (10.9 %) Info Technology (19.4 %) Materials (3.6 %) Telecom Services (2.1 %) Utilities (3.0 %) The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2015 Russell 1000 ❑Quarter 01 -Year 1.5% 15.2% -1.7% 9.6% -2.0% -23.1% k3.1 9.z�ro 25.8% - z.6�ro 1.9% 0.1% 11.0% .6% -1 5% 1.7% z.z�% o - 6.z�% o -4.1% -25.0% -15.0% -5.0% 5.0% 15.0% 25.0% Russell 2000 1 ■Quarter 01 -Year Consumer Disc (13.8 %) Consumer Staples (3.1 %) Energy (3.6 %) Financials (23.6 %) Health Care (15.7 %) Industrials (13.5 %) Info Technology (18.0 %) Materials (4.4 %) Telecom Services (0.8 %) Utilities (3.5 %) -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Source: Morningstar Direct ^ Z UL 4 \ BOGDAHN GROUP. Russell 1000 Apple Inc Top 10 Weighted Weight 3.44% Stocks 1-Qtr Return 1.2% 1-Year Return 37.3% Sector Information Technology Microsoft Corp 1.70% 9.3% 8.7% Information Technology Exxon Mobil Corporation 1.66% -1.3% -14.8% Energy Johnson & Johnson 1.29% -2.4% -4.2% Health Care General Electric Co 1.28% 8.0% 4.7% Industrials Wells Fargo & Co 1.25% 4.1% 9.9% Financials Berkshire Hathaway Inc Class B 1.21% -5.7% 7.5% Financials JPMorgan Chase & Co 1.20% 12.6% 20.8% Financials Procter & Gamble Co 1.01% -3.7% 2.7% Consumer Staples Pfizer Inc 0.98% -2.8% 16.9% Health Care ITop 10 Lsell 000 Netflix Inc Performing Weight 0.19% Stocks (by Quarter) 1-Qtr 1- 57.7% 49.1% ector Consumer Discretionary Skechers USA Inc 0.02% 52.7% 140.2% Consumer Discretionary Tesla Motors Inc 0.12% 42.1% 11.7% Consumer Discretionary Golar LNG Ltd 0.02% 42.0% -18.9% Energy bluebird bio Inc 0.03% 39.4% 336.5% Health Care Seattle Genetics Inc 0.02% 36.9% 26.5% Health Care HCC Insurance Holdings Inc 0.04% 36.1% 60.3% Financials KBR Inc 0.01% 35.1% -16.8% Industrials Coty Inc Class A 0.01% 31.7% 88.9% Consumer Staples Cablevision Systems Corp Class A 1 0.02% 31.6% 1 39.9% 1 Consumer Discretionary 11 Bottom Lsell rrr Peabody Energy Corp r Weight 0.00% 1-Qtr Return -55.5% Quarter) 1-Year Sector Return -86.4% Energy SandRidge Energy Inc 0.00% -50.7% -87.7% Energy Puma Biotechnology Inc 0.01% -50.6% 76.9% Health Care Windstream Holdings, Inc. 0.00% -43.8% -54.5% Telecommunication Services Michael Kors Holdings Ltd 0.04% -36.0% -52.5% Consumer Discretionary Kate Spade & Co 0.01% -35.5% -43.5% Consumer Discretionary Sears Holdings Corp 0.00% -35.5% -29.0% Consumer Discretionary MBIA Inc 0.00% -35.4% -45.6% Financials Stratasys Ltd 0.00% -33.8% -69.3% Information Technology Nationstar Mortgage Holdings Inc 0.00% -32.2% -53.7% Financials Source: Morningstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2015 A Me Team Health Holdings Inc 0.25% 11.7% Az 30.8% Health Care Manhattan Associates Inc 0.23% 17.9% 73.3% Information Technology Cepheid 0.23% 7.5% 27.6% Health Care Tyler Technologies Inc 0.23% 7.3% 41.8% Information Technology Maximus Inc 0.23% -1.5% 53.3% Information Technology Investors Bancorp Inc 0.23% 5.4% 13.6% Financials Healthsouth Corp 0.22% 4.3% 31.0% Health Care West Pharmaceutical Services Inc 0.22% -3.3% 38.9% Health Care Neurocrine Biosciences Inc 0.22% 20.3% 221.9% Health Care Prosperity Bancshares, Inc. 0.21% 10.5% -6.0% Financials -Zop 10 Performing Stocks (by Quarter) Russell 200A�� Weight =6�;Affr�� Harvest Natural Resources Inc 0.00% 291.5% -64.9% Energy Altisource Portfolio Solutions SA 0.02% 139.2% -73.1% Financials Natural Health Trends Corp 0.02% 131.8% 521.1% Consumer Staples Oncothyreon Inc 0.02% 129.4% 15.4% Health Care Sarepta Therapeutics Inc 0.07% 129.1% 2.1% Health Care TCP International Holdings Ltd 0.00% 128.8% -59.0% Industrials Alliance One International Inc 0.00% 117.4% -4.4% Consumer Staples Heron Therapeutics Inc 0.04% 114.2% 152.9% Health Care Affimed NV 0.01% 113.8% N/A Health Care Corium International Inc 0.01% 109.0% 76.2% Health Care Bottom r Quarter) Russell � American Eagle Energy Corp 0.00% -90.6% -99.7% Energy Dex Media Inc 0.00% -82.6% -93.4% Consumer Discretionary Molycorp Inc 0.00% -76.5% -96.5% Materials Education Management Corp 0.00% -75.0% -96.4% Consumer Discretionary Emerald Oil Inc 0.00% -71.3% -97.2% Energy Noranda Aluminum Holding Corp 0.00% -71.3% -75.6% Materials Alpha Natural Resources Inc 0.00% -69.8% -91.9% Energy Ampio Pharmaceuticals Inc 0.00% -68.5% -71.6% Health Care Eleven Biotherapeutics Inc 0.00% -68.4% -78.6% Health Care Arch Coal Inc 0.00% -66.0% -90.7% Energy THIE [� BOGDAHN `� GROUP ■ The return pattern for international stocks during the quarter was very similar to their domestic counterparts. The second quarter started off strong with the MSCI EAFE Index up over 4.0% during the month of April. Markets then took a breather in May and finally reversed course into the end of June on the negative momentum brought on by geopolitical events in Greece. While the broad international equity indices ended the quarter in positive territory in USD terms, the local currency performance for these same indices was negative as dollar weakness against major index components was a tailwind to USD returns for the quarter. The yen was the only major currency that depreciated versus the USD for the quarter. ■ Japan (3.1 %) was one of the strongest performing developed markets during the quarter (the Nikkei 225 reached an 18 -year high) thanks to continued aggressive central bank policies, strong corporate earnings, and GDP growth. In contrast, Australia ( -6.2 %) and New Zealand (- 13.1 %) were two of the worst - performing developed markets. ■ Equity returns in emerging countries fell across a broad performance spectrum of more the 25.0% with top performing Hungary returning 11.0% and bottom performing Indonesia returning - 14.1 %. Within GICS sectors, higher energy prices boosted equity returns in exporting countries like Brazil (7.0 %) and Russia (7.6 %) during the second quarter but were a drag on returns for heavy importers like India (- 3.6 %). Stocks in Latin America rebounded strongly after being the worst - performing region during the first quarter. EM Asia was the only region that failed to post positive returns in USD terms for the period. Source: MSCI Global Index Monitor (Returns are Net) The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2015 Quarter Performance I ■USD ❑Local Currency 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) -4.0% -2.0% 1 -Year 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) 0 0.5% 0.5% 0.6% 0.3% 1.1% 2.3% 0.7% 0.7% 1.9% 1.2% -0.2 % 0.1 3.5 3.2 0.0% 2.0% 4.0% ❑ USD ❑ Local Currency -53% 9.6% -5.3% 10.5% 4.2% 11.8% -7.5% 7.1 2.7% 21.6% -5.1 62% -14.2% 5.2 /o 3.1% 8.4 % - 23.4% 0.3% -24.0% -16.0% -8.0% 0.0% 8.0% 16.0% 24.0% THE, CBOGDAHN ' GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 13.2% 0.1% 2.2% Consumer Staples 10.9% 0.3% -3.9% Energy 5.2% 2.3% -30.1% Financials 26.2% 1.7% -1.5% Health Care 11.2% -1.5% 2.6% Industrials 12.7% 0.2% -4.6% Information Technology 4.7% -1.1% 4.6% Materials 7.4% -0.9% -12.1% Telecommunication Services 4.9% 4.8% 1.3% Utilities Total 3.6% 100.0% 1.6% 0. -12.2% -7.2% Netherlands 2.8% 2.0% Consumer Discretionary 11.8% Quarter -0.4% 0.7% Consumer Staples 9.9% 0.7% -3.3% Energy 7.0% 2.4% -29.4% Financials 27.8% 1.9% -1.6% Health Care 9.0% -1.1% 5.1% Industrials 11.0% -0.2% -5.2% Information Technology 7.5% -2.7% 1.6% Materials 7.5% -0.7% -15.8% Telecommunication Services 5.2% 3.4% 0.7% Utilities 3.4% 0.9% -12.5% Sweden it r, 2.1% -3.0% Consumer Discretionary 9.0% -3.2% -8.3% Consumer Staples 8.1% 2.3% 3.3% Energy 8.4% 8.5% -22.6% Financials 29.8% 2.9% 2.9% Health Care 2.5% -4.0% 11.4% Industrials 6.9% 1.1% -5.1% Information Technology 17.9% -4.0% -0.9% Materials 6.9% 1.3% -20.3% Telecommunication Services 7.3% 0.1% 0.3% Utilities Total 3.3% 100 .0% -0.3% r -12.8% Sweden 2.9% 2.1% -3.0% Source: MSCI Global Index Monitor (Returns are Net in USD) The Market Environment U.S. Dollar International Index Attribution & Country Detail As of June 30, 2015 Japan 22.9% 16.4% & oft, 3.1% 8.3% United Kingdom 20.3% 14.5% 3.0% -8.2% France 9.7% 6.9% 0.3% -9.6% Switzerland 9.2% 6.6% 1.0% -1.2% Germany 8.9% 6.4% -5.6% -9.5% Australia 6.9% 4.9% -6.2% -14.2% Spain 3.5% 2.5% -2.1% -17.3% Hong Kong 3.3% 2.3% 5.6% 12.4% Sweden 2.9% 2.1% -3.0% -7.2% Netherlands 2.8% 2.0% 2.8% 2.5% Italy 2.4% 1.7% 2.5% -13.5% Denmark 1.7% 1.2% 2.4% 5.1% Singapore 1.4% 1.0% -0.1% -3.6% Belgium 1.3% 0.9% 1.0% 3.7% Finland 0.8% 0.6% -3.9% -6.3% Norway 0.6% 0.5% 3.3% -26.6% Israel 0.6% 0.4% -1.5% 8.8% Ireland 0.4% 0.3% 8.5% 10.8% Austria 0.2% 0.1% 3.2% -22.7% Portugal 0.2% 0.1% 2.0% -36.8% New Zealand 0.1% 0.1% -13.1% -20.3% Canada Total Developed Countries 1 1 6.7% 78.1% 1 -009% 1jr- r -15.3% China 5.4% 6.0% 24.6% Korea 3.1% -3.7% -14.2% Taiwan 2.8% 1.0% 3.0% South Africa 1.7% -0.7% -1.5% India 1.7% -3.6% 3.3% Brazil 1.7% 7.0% -29.0% Mexico 1.0% 0.3% -11.9% Russia 0.8% 7.6% -27.6% Malaysia 0.7% -7.9% -21.5% Indonesia 0.5% -14.1% -8.5% Thailand 0.5% -3.4% -0.4% Poland 0.3% -0.9% -19.4% Turkey 0.3% 0.8% -16.5% Philippines 0.3% -5.0% 9.4% Chile 0.3% -3.6% -15.9% Qatar 0.2% -0.8% 2.9% United Arab Emirates 0.2% 10.7% 1.0% Colombia 0.1% 3.5% -40.8% Peru 0.1% 0.8% -7.5% Greece 0.1% 5.2% -57.7% Hungary 0.1% 11.0% -3.8% Czech Republic 0.0% 1.7% -13.5% Egypt 0.0% -6.1% 11.5% PSN THIS Q BOGDAHN � GROUP ■ Fixed income performance was weak for the second quarter as all segments within the broad market index posted negative returns during the period except for high yield which was flat. Much of the poor performance can be attributed to the market's concern of increasingly imminent Fed action to raise short -term interest rates. ■ The disproportionately poor performance in the corporate credit space was largely the result of two factors. First, geopolitical concerns, as they often do, led to an overall "de- risking" in bond markets as investors flocked to the relative safety of U.S. Treasuries. Second, a large influx of supply hit the corporate sector during the quarter. For example, AT &T issued $17.513 in new debt, representing the third largest corporate deal on record, to help finance the company's acquisition of DirecTV. This increased supply of corporate debt led to softer credit markets and wider spreads demanded by investors relative to Treasuries. ■ Due to the more pronounced increases in interest rates on the long end of the Treasury yield curve, longer dated issues underperformed short maturity issues for the quarter. The quarterly return on the Barclays 20+ Year U.S. Treasury Index was -9.1% versus a 0.1% return on the Barclays 1 -3 Year Treasury Index. ■ While international bond indices held up fairly well during the quarter relative to domestic bond index results, their performance illustrates a significant lag over the one -year period. During the quarter, Eurozone bonds initially surged higher on optimism surrounding the ECB's new quantitative easing program. However, later in the period, ongoing turmoil surrounding Greece resulted in the market giving back all of its early gains and more. Much like equity index performance, the one -year trailing returns for the global bond indices are negatively impacted by the strength of the USD over the period. The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of June 30, 2015 AAA (5.1) AA (5.7) A (6.9) Baa (7.5) U.S. High Yield (4.4) U.S. Treasury (5.6) U.S. Mortgage (4.6) U.S. Corporate IG (7.1) U.S. TIPS (6.3) Aggregate (5.6) Intermediate Agg (4.2) Global Agg x US (7.3) Multiverse (6.4) Quarter Performance -1.2% -1.9% -3.0% -3.2% 0.0% -0.7% -3.2 -1.7% -0.7% -0.8% -1.0% -4.0% -3.0% -2.0% 1 -Year Performance AAA (5.1) AA (5.7) A (6.9) Baa (7.5) U.S. High Yield (4.4) U.S. Treasury (5.6) U.S. Mortgage (4.6) U.S. Corporate IG (7.1) U.S. TIPS (6.3) Aggregate (5.6) Intermediate Agg (4.2) Global Agg x US (7.3) Multiverse (6.4) - 13.2% -15.0% -1.0% 0.0% 1.0% 2.2% 2.0% 1.4% 0.1% -0.4% 2.3% 2.3% 0.8% -1.7% 1.9% 1.9% -7.1% - 10.0 % -5.0% 0.0% 5.0% Source: Barclays Capital Live Tum [ BOGDAHN `� GROUP ■ The Treasury yield curve in the U.S. steepened significantly during the second quarter. Since prices and performance move in the opposite direction of yields, the long -end of the curve was the worst performing maturity segment. Thirty -year Treasuries experienced a 10.4% decline during the period. The yield on the 30 -year Treasury rose from 2.54% to 3.11% in the quarter. At the short end of the curve, 2 -year Treasuries rose from 0.56% to 0.64 %. ■ The main driver behind the rate increases during the quarter was market participants indicating, through their trading activity, an expectation that the Fed would move to increase short -term interest rates later this year. This expectation was also reflected in the increase in TIPS yields during the period which jumped from 0.2% to 0.5 %. The late period decline in Treasury yields came as a result of the previously mentioned flight -to- quality often accompanying headline geopolitical events like Greece's economic woes. ■ It is not expected U.S. rates will rise significantly or that a yield curve steepening will continue unabated in the near term. Should the Fed raise the short -term rates later this year, the Fed has telegraphed they will do so at a measured pace and with an ongoing assessment of current economic data. Geopolitical events, overseas quantitative easing (QE) programs, and lower interest rates outside the U.S. should put downward pressure on how high long -term U.S. rates can go. The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2015 1 -Year Trailing Market Rates 3.50 Fed Funds Rate TED Spread 3 -Month Libor 3.00 BAA OAS — 10yr Treasury 10yr TIPS 2.50 2.00 1.50 1.00 o.so -ft Aft M �u l� 0.00 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 Apr -15 May -15 Jun -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 Asset Allocation By Segment as of March 31, 2015 : $3897349273 Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2015 Asset Allocation By Segment as of June 30, 2015 : $3990859920 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 18,989,619 49.0 _ Domestic Equity 19,005,878 48.6 m International Equity 5,656,723 14.6 m International Equity 5,756,631 14.7 • Domestic Fixed Income 7,915,899 20.4 ■ Domestic Fixed Income 7,220,375 18.5 • Global Fixed Income 1,270,903 3.3 ■ Global Fixed Income 1,257,514 3.2 • Other Fixed Income 634,838 1.6 ■ Other Fixed Income 740,033 1.9 7 Real Estate 3,574,016 9.2 7 Real Estate 3,675,924 9.4 Cash Equivalent 692,275 1.8 Cash Equivalent 1,429,564 3.7 THE 10 BOGDAHN GROUP. Allocation Asset Allocation By Manager as of March 31, 2015 : $3897349273 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of June 30. 2015 Asset Allocation By Manager as of June 30, 2015 : $3990859920 Market Value Allocation Vanguard Total Stock Market (VITSX) 18,989,619 49.0 Vanguard Total Stock Market (VITSX) 19,005,878 48.6 — RBC Global (Voyageur) 5,656,723 14.6 — RBC Global (Voyageur) 5,756,631 14.7 ■ Galliard Core Fixed Income 4,720,906 12.2 ■ Galliard Core Fixed Income 4,690,720 12.0 — Intercontinental 2,281,916 5.9 — Intercontinental 2,354,792 6.0 • Vanguard Short Term Bond Index (VSCSX) 2,023,149 5.2 Receipt & Disbursement 1,405,318 3.6 • American Core Realty Fund 1,307,320 3.4 ■ Vanguard Short Term Bond Index (VSCSX) 1,353,518 3.5 Templeton Global Bond Fund (FBNRX) 1,270,903 3.3 ■ American Core Realty Fund 1,336,827 3.4 Galliard TIPS 1,190,074 3.1 Templeton Global Bond Fund (FBNRX) 1,257,514 3.2 Receipt & Disbursement 658,824 1.7 Galliard TIPS 1,184,688 3.0 Crescent Direct Lending Fund 634,838 1.6 Crescent Direct Lending Fund 740,033 1.9 PSN TuiE 11 BOGDAHN Q � GROUP 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 -1.4% 1115 IM -1.8% Ij -0.6% -3.1 % 3.5% Asset Allocation vs. Target Allocation Total Fund As of June 30, 2015 Receipt & Disbursement 3.6% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation ( %) Target ( %) Total Domestic Equity 19,005,878 48.6 50.0 Total International Equity 5,756,631 14.7 15.0 Total Domestic Fixed Income 7,228,926 18.5 15.0 Total Global Fixed Income 1,257,514 3.2 5.0 Total Real Estate 3,691,619 9.4 10.0 Total Other Fixed Income 740,033 1.9 5.0 Receipt & Disbursement 1,405,318 3.6 0.0 Total Fund 39,085,920 100.0 100.0 12 T uk: BOGDAHN 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 Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Jun -2015 22,185,810 60.89 24,762,509 63.35 19,005,878 48.63 19,005,878 48.63 5,756,631 14.73 5,756,631 14.73 9,226,473 23.61 7,228,926 18.49 4,690,720 12.00 1,184,688 3.03 1,353,518 3.46 1,257,514 3.22 1,257,514 3.22 740,033 1.89 740,033 1.89 3,691,619 9.44 1,336,827 3.42 2,354,792 6.02 1,405,318 3.60 39,085,920 100.00 Mar -2015 22,185,810 60.89 24,646,342 63.63 18,989,619 49.03 18,989,619 49.03 5,656,723 14.60 5,656,723 14.60 9,839,871 25.40 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 3.28 634,838 1.64 634,838 1.64 3,589,236 9.27 1,307,320 3.38 2,281,916 5.89 658,824 1.70 38,734,273 100.00 13 Dec -2014 22,185,810 60.89 23,982,045 63.54 18,651,785 49.42 18,651,785 49.42 5,330,260 14.12 5,330,260 14.12 9,683,185 25.66 7,824,405 20.73 4,654,026 12.33 1,168,063 3.09 2,002,316 5.31 1,278,113 3.39 1,278,113 3.39 580,668 1.54 580,668 1.54 3,524,402 9.34 1,264,952 3.35 2,259,450 5.99 553,785 1.47 37,743,417 100.00 Asset Allocation Asset Allocation History By Portfolio As of June 30, 2015 Sep -2014 4,104,947 11.27 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 - 0.00 - 0.00 2,996,295 8.22 824,333 2.26 2,171,962 5.96 4,104,947 11.27 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 - 0.00 - 0.00 2,906,000 7.96 809,377 2.22 2,096,623 5.74 3,768,315 10.32 36,502,614 100.00 _ [ Hk: BOGDAHN GROUP. Historical Asset Allocation by Segment 100.0 1 M111111 80.0 1 70.0 1 60.0 0 0 50.0 0 a 40.0 30.0 1 20.0 1 M111111 0.0 L _ 9/07 3/08 9/08 3/09 9/09 Domestic Equity International Equity Other Fixed Income Real Estate 3/10 9/10 3/11 Domestic Fixed Income Cash Equivalent 14 9/11 3/12 Global Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To June 30, 2015 J~ 9/12 3/13 9/13 3/14 9/14 6/15 PSN TuiE Q BOGDAHN � GROUP Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of June 30, 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 -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 48.63 (32) 14.73 (55) 18.49 (83) 3.22 (83) 1.89 (94) 9.44 (29) 3.60 (8) 5th Percentile 57.46 27.89 46.21 11.52 34.01 12.25 4.86 1 st Quartile 50.40 20.09 33.74 5.19 19.49 9.57 1.93 Median 44.41 15.01 27.53 4.68 11.09 5.78 1.04 3rd Quartile 33.06 12.67 21.51 3.99 4.94 4.28 0.49 95th Percentile 20.50 8.46 13.08 0.70 1.49 2.33 0.07 THk: 15 BOGDAHN GROUP. Financial Reconciliation Quarter to Date 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 Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2015 Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 04/01/2015 Transfers Fees Expenses Deprec. 06/30/2015 24,646,342 13,313 - 13,313 -870 173,449 - 56,412 24,762,509 18,989,619 - - - 83,164 - 66,904 19,005,878 18,989,619 - - - 83,164 - 66,904 19,005,878 5,656,723 13,313 - 13,313 -870 90,286 10,492 5,756,631 5,656,723 13,313 - 13,313 -870 90,286 10,492 5,756,631 9,839,871 - 569,089 -3,396 -147 23,618 - 64,385 9,226,473 7,934,130 - 662,188 -3,396 -147 11,523 - 50,996 7,228,926 4,720,906 3,396 -3,396 - - - 30,187 4,690,720 1,190,074 - - -147 2,107 -7,346 1,184,688 2,023,149 - 665,584 - 9,416 - 13,464 1,353,518 1,270,903 - 10,484 10,484 - 13,389 1,257,514 1,270,903 - 10,484 10,484 - 13,389 1,257,514 634,838 103,584 1,611 - 740,033 634,838 103,584 - 1,611 - 740,033 3,589,236 - 15,220 -7,781 41,329 84,056 3,691,619 1,307,320 - 15,220 -3,686 19,381 29,033 1,336,827 2,281,916 - - - -4,095 - 21,948 55,023 2,354,792 658,824 570,996 748,184 - 549,321 - - 23,384 19 - 1,405,318 38,734,273 - 748,184 - 549,321 - 24,490 - 24,401 238,416 - 36,741 39,085,920 In ^\ UE, BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To June 30, 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 06/30/2015 Total Equity 22,185,810 1,039,261 - 39,261 -2,584 434,208 1,145,075 24,762,509 Total Domestic Equity 16,779,784 1,000,000 - - 270,967 955,127 19,005,878 Vanguard Total Stock Market (VITSX) 16,779,784 1,000,000 - - 270,967 955,127 19,005,878 Total International Equity 5,406,026 39,261 - 39,261 -2,584 163,241 189,947 5,756,631 RBC Global (Voyageur) 5,406,026 39,261 - 39,261 -2,584 163,241 189,947 5,756,631 Total Fixed Income 7,150,591 2,003,716 -6,744 - 29,671 112,834 -4,253 9,226,473 Total Domestic Fixed Income 5,789,056 1,337,812 -6,744 -3,759 29,328 83,233 7,228,926 Galliard Core Fixed Income 4,603,250 3,396 -6,744 - - 90,818 4,690,720 Galliard TIPS 1,185,806 - - -3,759 6,971 -4,330 1,184,688 Vanguard Short Term Bond Index (VSCSX) - 1,334,416 - 22,357 -3,255 1,353,518 Total Global Fixed Income 1,361,535 - 81,805 81,805 - 104,020 1,257,514 Templeton Global Bond Fund (FBNRX) 1,361,535 - 81,805 - 81,805 - 104,020 1,257,514 Total Other Fixed Income - 747,710 - 25,912 1,701 16,534 740,033 Crescent Direct Lending Fund - 747,710 - - 25,912 1,701 16,534 740,033 Total Real Estate 2,996,295 403,118 - 41,173 - 105,353 228,026 3,691,619 American Core Realty Fund 824,333 403,118 -9,572 48,145 70,803 1,336,827 Intercontinental 2,171,962 - - - 31,601 - 57,208 157,223 2,354,792 Receipt & Disbursement 4,104,947 - 3,446,095 2,410,586 - 1,623,400 - -40,834 114 - 1,405,318 Total Fund Portfolio 36,437,643 - 2,410,586 - 1,623,400 - 87,177 - 73,089 652,510 1,368,847 39,085,920 17 ^\ THk: BOGDAHN GROUP. Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of June 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 0.46 (15) 5.26 (31) 4.12 (33) 12.99 (5) 11.91 (14) 5.54 (69) 11/01/2000 Total Fund Policy 0.39 (19) 5.45 (25) 4.78 (18) 12.31 (13) 12.57 (4) 5.2o (85) All Public Plans -Total Fund Median -0.14 4.65 3.43 10.83 10.94 5.85 Total Fund (New Mgrs) (Net) 0.46 (15) 5.26 (31) 4.12 (33) 12.99 (5) 11.91 (14) 5.23 (56) 10/01/2007 Total Fund Policy 0.39 (19) 5.45 (25) 4.78 (18) 12.31 (13) 12.57 (4) 6.20 (13) All Public Plans -Total Fund Median -0.14 4.65 3.43 10.83 10.94 5.32 Total Fund (Gross) 1 0.52 (12) 4.43 (27) 13.46 (3) 12.521 (5) 6.21 (25) 11/01/2000 Total Fund Policy 0.39 (19) 5.45 (25) 4.78 (18) 12.31 (13) 12.57 (4) 5.28 (85) All Public Plans -Total Fund Median -0.14 4.65 3.43 10.83 10.94 5.85 Total Fund (New Mgrs) (Gross) 0.52 (12) 5.50 (21) 4.43 (27) 13.46 (3) 12.52 (5) 5.82 (28) 10/01/2007 Total Fund Policy 0.39 (19) 5.45 (25) 4.78 (18) 12.31 (13) 12.57 (4) 6.20 (13) All Public Plans -Total Fund Median -0.14 4.65 3.43 10.83 10.94 5.32 Total Equity 9r 0.47 6.992 18.01 16.09 01/01/2001 Total Equity Policy 0.31 6.13 4.70 16.56 15.83 4.89 Total Domestic Equity 0.09 (55) 7.20 (50) 7.19 (66) 18.09 (49) 16.46 (75) 6.14 (40) 11/01/2000 Total Domestic Equity Policy 0.14 (54) 7.28 (48) 7.29 (65) 17.73 (57) 17.54 (56) 4.65 (90) IM U.S. Large Cap Core Equity (SA +CF) Median 0.25 7.14 8.13 17.95 17.75 5.82 Total International Equity 1.78 (43) 6.53 (16) -1.78 (33) 18.51 (4) 15.24 (4) 6.48 (68) 11/01/2000 MSCI EAFE Index 0.84 (67) 2.14 (47) -3.82 (52) 12.45 (50) 10.03 (47) 4.49 (99) IM International Large Cap Value Equity (SA +CF) Median 1.36 1.66 -3.58 12.36 9.86 6.81 Total Fixed Income 1.22 0.97 2.05 3.51 5.20 11/01/2000 Total Fixed Policy -0.67 1.85 1.89 1.74 2.89 5.09 Total Domestic Fixed Income -0.51 (73) 1.61 (97) 1.27 (94) 1.56 (100) 3.22 (100) 5.10 (76) 11/01/2000 Total Domestic Fixed Policy -0.67 (78) 1.85 (96) 1.89 (93) 1.74 (100) 2.89 (100) 5.09 (76) IM U.S. Large Cap Core Equity (SA +CF) Median 0.25 7.14 8.13 17.95 17.75 5.82 Total Global Fixed Income -0.24 (10) -1.65 (36) -1.59 (32) 4.49 (2) N/A 5.50 (4) 12/01/2011 Total Global Fixed Income Policy -1.55 (41) -5.45 (91) -9.02 (91) -2.45 (96) N/A -1.71 (95) IM Global Fixed Income (MF) Median -1.91 -3.45 -4.85 1.17 2.63 1.90 Total Real Estate 3.51 (57) 10.39 (59) 14.44 (46) 14.42 (32) 14.78 11111kill. 4.29 (28) 10/01/2007 NCREIF Fund Index -ODCE (VVV) 3.82 (46) 10.84 (53) 14.43 (46) 13.11 (66) 14.41 (59) 3.75 (44) IM U.S. Open End Private Real Estate (SA +CF) Median 3.72 10.99 13.86 13.57 14.78 3.69 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. H Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent resented on IRR page. 18 BOGDA` -N p p p 9 p 9 p p 9 �I GROUP Comparative Performance Trailing Returns Total Fund As of June 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global (Voyageur) 1.78 (43) 6.53 (16) -1.78 (33) 18.51 (4) 15.24 (4) 3.33 (18) 11/01/2007 MSCI EAFE Index 0.84 (67) 2.14 (47) -3.82 (52) 12.45 (50) 10.03 (47) 0.02 (77) IM International Large Cap Value Equity (SA +CF) Median 1.36 1.66 -3.58 12.36 9.86 0.78 Vanguard Total Stock Market (VITSX) 0.09 (41) 7.20 (40) 7.19 (31) N/A N/A 16.67 (38) 03/01/2013 Vanguard Total Stock Market Index Hybrid 0.08 (42) 7.23 (38) 7.20 (31) 17.72 (45) 17.60 (21) 16.71 (38) IM U.S. Multi -Cap Core Equity (MF) Median -0.12 6.57 5.59 17.58 16.24 15.94 Galliard Core Fixed Income -0.64 (59) 1.97 (27) 2.07 (23) 2.09 (48) 3.46 (34) 4.36 (77) 10/01/2007 Barclays Intermediate Aggregate Index -0.67 (62) 1.85 (38) 1.89 (34) 1.74 (73) 2.89 (75) 4.32 (80) IM U.S. Intermediate Duration (SA +CF) Median -0.61 1.75 1.76 2.04 3.20 4.63 Vanguard Short Term Bond Index (VSCSX) -0.22 (37) N/A N/A N/A N/A 0.82 (34) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index -0.21 (37) 1.39 (13) 1.30 (11) 2.54 (15) 3.26 (25) 1.03 (16) IM U.S. Intermediate Investment Grade (MF) Median -0.37 0.96 0.73 1.42 2.36 0.68 Galliard TIPS -0.44 0.22 -1.72 -0.41 2.28 3.65 10/01/2007 Barclays U.S. TIPS 1 -10 Year -0.15 0.04 -1.95 -0.54 2.36 3.74 Templeton Global Bond Fund (FBNRX) -0.24 (10) -1.65 (36) -1.59 (32) 4.50 (2) N/A 5.51 (4) 12/01/2011 Citigroup World Government Bond -1.55 (41) -5.45 (91) -9.02 (91) -2.45 (96) 1.05 (89) -1.71 (95) IM Global Fixed Income (MF) Median -1.91 -3.45 -4.85 1.17 2.63 1.90 American Core Realty Fund 3.75 (47) 10.31 (60) 14.02 (47) 12.64 (72) 13.54 (71) 3.56 (62) 10/01/2007 American Core Realty Policy 3.82 (46) 10.84 (53) 14.43 (46) 13.11 (66) 14.06 (62) 6.37 (7) IM U.S. Open End Private Real Estate (SA +CF) Median 3.72 10.99 13.86 13.57 14.78 3.69 Intercontinental 3.37 (59) 9.93 (64) 14.09 (47) 15.09 (28) N/A 15.03 (29) 10/01/2010 NCREIF Fund Index -ODCE 3.82 (46) 10.84 (53) 14.43 (46) 13.11 (66) 14.41 (59) 13.94 (64) IM U.S. Open End Private Real Estate (SA +CF) Median 3.72 10.99 13.86 13.57 14.78 14.40 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. H Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent resented on IRR page. 19 BOGDA` -N p p p 9 p 9 p p 9 �I GROUP Comparative Performance - IRR Comparative Performance - IRR As of June 30, 2015 QTR 1 YR Inception Inception Date Crescent Direct Lending Fund 0.23 N/A -1.34 10/14/2014 PSN TuiE 20 Q-'O* BOGDAHN GROUP Comparative Performance Fiscal Year Returns Total Fund As of June 30, 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) 5.26 (31) 11.85 (15) 15.72 (7) 18.95 (29) -1.17 (80) 10.67 (33) 0.70 (63) -16.84 (91) 13.03 (74) 7.89 (62) Total Fund Policy 5.45 (25) 11.38 (22) 15.06 (14) 19.59 (21) 2.53 (12) 9.13 (74) 0.33 (67) -12.11 (31) 11.97 (87) 9.55 (29) All Public Plans -Total Fund Median 4.65 10.15 12.60 17.93 0.32 9.93 1.59 -13.57 14.37 8.55 Total Fund (New Mgrs) (Net) 5.26 (31) 11.85 (15) 15.72 (7) 18.95 (29) -1.17 (80) 10.66 (33) 0.68 (63) -16.82 (91) N/A N/A Total Fund Policy 5.45 (25) 11.38 (22) 15.06 (14) 19.59 (21) 2.53 (12) 9.13 (74) 0.33 (67) -12.11 (31) 11.97 (87) 9.55 (29) All Public Plans -Total Fund Median 4.65 10.15 12.60 17.93 0.32 9.93 1.59 -13.57 14.37 8.55 Total Fund (Gross) F, 5.50 (21) 12.21 (10) 16.33 (5) 19.81 (17) -0.45 (67) 11.40 (20) 1.43 (52) -16.48 (89) 13.92 (58) 8.62 (49) Total Fund Policy 5.45 (25) 11.38 (22) 15.06 (14) 19.59 (21) 2.53 (12) 9.13 (74) 0.33 (67) -12.11 (31) 11.97 (87) 9.55 (29) All Public Plans -Total Fund Median 4.65 10.15 12.60 17.93 0.32 9.93 1.59 -13.57 14.37 8.55 Total Fund (New Mgrs) (Gross) 5.50 (21) 12.21 (10) 16.33 (5) 19.81 (17) -0.45 (67) 11.40 (20) 1.39 (53) -16.46 (89) N/A N/A Total Fund Policy 5.45 (25) 11.38 (22) 15.06 (14) 19.59 (21) 2.53 (12) 9.13 (74) 0.33 (67) -12.11 (31) 11.97 (87) 9.55 (29) All Public Plans -Total Fund Median 4.65 10.15 12.60 17.93 0.32 9.93 1.59 -13.57 14.37 8.55 Total Equity 15.46 23.0 ff 27.08 -4.58 13.61 W - 1.09.61 10.83 Total Equity Policy 6.13 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity 7.20 (50) 17.58 (70) 21.85 (35) 27.76 (62) -3.30 (90) 14.19 (7) -4.29 (37) -21.66 (63) 17.58 (43) 9.29 (69) Total Domestic Equity Policy 7.28 (48) 17.76 (68) 21.60 (38) 30.20 (45) 0.55 (57) 10.96 (31) -6.91 (63) -21.98 (68) 16.44 (60) 10.79 (50) IM U.S. Large Cap Core Equity (SA +CF) Median 7.14 19.25 20.74 29.76 1.12 9.46 -5.81 -20.44 16.97 10.77 Total International Equity 6.53 (16) 10.08 (10) 27.54 (15) 24.74 (3) -8.75 (54) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) 19.84 (67) MSCI EAFE Index 2.14 (47) 4.70 (64) 24.29 (40) 14.33 (54) -8.94 (57) 3.71 (67) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity (SA +CF) Median 1.66 5.72 22.77 15.09 -8.41 5.04 6.27 -27.34 23.89 20.96 Total Fixed Income 1.22 3.21 -0.59 Mn 6.34 =7 10.53 0.64 4.96 3.27 Total Fixed Policy 1.85 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 1.61 (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 1.85 (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 7.14 19.25 20.74 29.76 1.12 9.46 -5.81 -20.44 16.97 10.77 Total Global Fixed Income -1.65 (36) 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 -5.45 (91) -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 -3.45 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Total Real Estate 10.39 (59) 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 10.84 (53) 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 10.99 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 21 [ 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 Comparative Performance Fiscal Year Returns Total Fund As of June 30, 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 8.94 (64) 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) 9.88 18.01 20.39 27.57 1.36 11.30 -3.06 -20.34 20.19 6.80 6.53 (16) 10.08 (10) 27.54 (15) 24.74 (3) -8.75 (54) 11.69 (15) 11.87 (20) N/A N/A N/A 2.14 (47) 4.70 (64) 24.29 (40) 14.33 (54) -8.94 (57) 3.71 (67) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) 1.66 5.72 22.77 15.09 -8.41 5.04 6.27 -27.34 23.89 20.96 7.20 (40) 17.77 (25) N/A N/A N/A N/A N/A N/A N/A N/A 7.23 (38) 17.77 (25) 21.60 (64) 30.28 (17) 0.71 (20) 11.16 (30) -6.03 (58) -21.19 (32) 16.98 (45) 10.38 (28) 6.57 15.74 23.37 26.38 -2.00 9.65 -5.26 -22.83 16.55 8.96 1.97 (27) 3.15 (38) -0.64 (75) 5.82 (47) 4.16 (27) 9.63 (18) 12.08 (39) -1.68 (94) N/A N/A 1.85 (38) 2.74 (59) -0.71 (78) 4.31 (85) 4.22 (22) 7.52 (78) 9.69 (81) 4.16 (35) 5.33 (69) 3.84 (60) 1.75 2.87 -0.27 5.59 3.60 8.28 11.53 3.24 5.49 3.92 0.22 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A N/A 0.04 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 1.39 (13) 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) 0.96 1.71 -0.47 5.13 1.99 7.53 10.58 -0.22 4.27 3.13 -1.65 (36) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A N/A -5.45 (91) -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) -3.45 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 10.31 (60) 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 10.84 (53) 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 10.99 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 9.93 (64) 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A N/A 10.84 (53) 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) 10.99 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 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 22 [ HOGLAl 11 `� GROUP Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 17.00 14.00 11.00 8.00 v K 5.00 2.00 1.00 - -4.00 00 •0 ■ • 00 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 0.52 (12) 5.50 (21) 4.43 (27) 11.55 (10) 13.46 (3) 9.92 (6) 12.52 (5) • Total Fund Policy 0.39 (19) 5.45 (25) 4.78 (18) 11.29 (15) 12.31 (13) 9.99 (5) 12.57 (4) Median -0.14 4.65 3.43 10.00 10.83 8.31 10.94 Comparative Performance 28.00 24.00 20.00 16.00 12.00 v 8.00 K 4.00 0.00 -4.00 -8.00 -12.00 Performance Review Total Fund Portfolio As of June 30. 2015 • • 0 0 t Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Total Fund Portfolio 12.21 (10) 16.33 (5) 19.81 (17) -0.45 (67) 11.40 (20) 1.43 (52) • Total Fund Policy 11.38 (22) 15.06 (14) 19.59 (21) 2.53 (12) 9.13 (74) 0.33 (67) Median 10.15 12.60 17.93 0.32 9.93 3.24 (79) 1.59 7.55 (3) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Total Fund Portfolio 2.32 (62) 2.58 (35) -1.02 (47) 3.24 (79) 2.10 (22) 7.55 (3) Total Fund Policy 2.32 (61) 2.66 (32) -0.64 (24) 3.90 (31) 1.69 (51) 6.10 (32) All Public Plans -Total Fund Median 2.44 2.25 -1.13 3.63 1.70 5.60 23 THIS (T BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 24.0 e Over 0 - Performance 0 16.0 0 a 8.0 v c LL 0.0 A 0 ~ -8.0 1 1 -8.0 0.0 8.0 Total Fund Policy ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 14.08 13.20 12.32 O «' 11.44 v K 10.56 9.68 4.40 4.60 16.0 Performance Review Total Fund Portfolio As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 13.46 5.17 y0.0 12.52 9.52 O Total Fund Policy 12.31 4.54 e8000888 O Total Fund Policy 00 8.34 Median 10.83 4.62 Median 10.94 8.45 v 25.0 8 0O 06 e Tracking Up Down Information Sharpe v Downside O Market Market Alpha Ratio Ratio Beta 00 00 Capture Capture `w 50.0 -0 Total Fund Portfolio 1.22 110.01 e -0.23 0.89 2.50 1.11 0.59 Total Fund Policy 0.00 100.00 100.00 O O AL 2.60 1.00 0.37 Historical Statistics - 5 Years 75.0 Tracking Up Down Under w Sharpe Downside Error Market Market Alpha Ratio Ratio Performance Risk Capture Capture 100.0 24.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 4.80 5.00 5.20 Risk (Standard Deviation %) Return Standard Deviation 5.40 0 Total Fund Portfolio 20 • Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 12.96 12.42 O 11.88 «' 11.34 v K 10.80 - 10.26 7.8 8.1 8.4 15 (75 %) 2 (10 %) 3 (15 %) 0 (0 %) 12 (60 %) 6 (30 %) 2 (10 %) 0 (0 %) N 1 8.7 9.0 9.3 9.6 Risk (Standard Deviation %) Return Standard Deviation 9.9 • Total Fund Portfolio 13.46 5.17 • Total Fund Portfolio 12.52 9.52 O Total Fund Policy 12.31 4.54 O Total Fund Policy 12.57 8.34 Median 10.83 4.62 Median 10.94 8.45 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.22 110.01 159.06 -0.23 0.89 2.50 1.11 0.59 Total Fund Policy 0.00 100.00 100.00 0.00 2.60 1.00 0.37 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.80 105.63 131.97 -1.52 0.04 1.30 1.13 5.38 Total Fund Policy 0.00 100.00 100.00 1.00 24 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 28.00 24.00 20.00 16.00 O O 12.00 E v K 8.00 4.00 0.00 00 -4.00 -8.00 00 00 Comparative Performance 44.00 36.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 0.09 (41) 7.20 (40) 7.19 (31) 15.84 (34) N/A N/A N/A • VG Total Stock Mkt Hybrid 0.08 (42) 7.23 (38) 7.20 (31) 15.86 (33) 17.72 (45) 14.12 (20) 17.60 (21) Median -0.12 6.57 5.59 14.85 17.58 12.62 16.24 Comparative Performance 44.00 36.00 1 Qtr 28.00 1 Qtr 20.00 ■ 12.00 E v K 4.00 -4.00 12.00 20.00 9 Performance Review VG Total Stock Mkt (VITSX) As of June 30. 2015 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • VG Total Stock Mkt (VITSX) 17.77 (25) N/A N/A N/A N/A N/A • VG Total Stock Mkt Hybrid 17.77 (25) ?1.60 (64) 30.28 (17) 0.71 (20) 11.16 (30) -6.03 (58) Median 15.74 ?3.37 ?6.38 -2.00 9.65 -5.26 25 PSN THIS Q BOGDAHN � GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 VG Total Stock Mkt (VITSX) 1.81 (57) 5.20 (37) -0.01 (30) 4.86 (35) 2.04 (47) 10.08 (37) VG Total Stock Mkt Hybrid 1.81 (58) 5.24 (34) -0.02 (30) 4.87 (34) 2.04 (47) 10.09 (36) IM U.S. Multi -Cap Core Equity (MF) Median 2.18 4.45 -0.82 4.51 1.98 9.64 25 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 25.00 20.00 15.00 O 10.00 C O 5.00 w p O p 0.00 • -5.00 -10.00 -15.00 -20.00 1 1 1 • 44.00 36.00 28.00 20.00 12.00 1 r �• 4.00 _ -4.00 -12.00 -20.00 -28.00 Performance Review RBC Global (Voyageur) As of June 30. 2015 o PSN THIS Q BOGDAHN � GROUP Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • RBC Global (Voyageur) 1.78 (43) 6.53 (16) -1.78 (33) 13.00 (12) 18.51 (4) 10.12 (8) 15.24 (4) a RBC Global (Voyageur) 10.08 (10) 27.54 (15) 24.74 (3) -8.75 (54) 11.69 (15) 11.87 (20) • MSCI EAFE Index 0.84 (67) 2.14 (47) -3.82 (52) 9.25 (51) 12.45 (50) 5.35 (51) 10.03 (47) O MSCI EAFE Index 4.70 (64) 24.29 (40) 14.33 (54) -8.94 (57) 3.71 (67) 3.80 (66) Median 1.36 1.66 -3.58 9.32 12.36 5.35 9.86 Median 5.72 22.77 15.09 -8.41 5.04 6.27 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 RBC Global (Voyageur) 6.14 (16) -1.39 (15) -7.80 (93) 2.57 (81) 4.15 (6) 11.77 (1) MSCI EAFE Index 5.00 (42) -3.53 (49) -5.83 (63) 4.34 (45) 0.77 (62) 5.75 (59) IM International Large Cap Value Equity (SA +CF) Median 4.51 -3.73 -5.57 4.16 1.20 6.11 o 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 64W n o 0 0.0 T U m K -15.0 1 1 -15.0 0.0 15.0 MSCI EAFE Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 21.00 18.00 15.00 v 12.00 9.00 9.00 9.36 1 1 1 9.72 10.08 10.44 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 () 0 0 0 0 0 0 0 0 0 0 0 0 0 0 w 25.0 0 O O 50.0 O O c O O O O O 00 O O 75.0 v K Under 100.0 1 Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 1 30.0 45.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count C 10.80 11.16 Standard Deviation 11.52 lb RBC Global (Voyageur) 19 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 18.00 16.00 14.00 «' 12.00 v K 10.00 8.00 14.28 14.96 16 (84 %) 2 (11%) 1 (5 %) 0 (0 %) 0 (0 %) 7 (35 %) 11 (55 %) 2 (10 %) 0 15.64 16.32 17.00 17.68 Risk (Standard Deviation %) Return Standard Deviation 18.36 O RBC Global (Voyageur) 18.51 10.90 O RBC Global (Voyageur) 15.24 17.72 O MSCI EAFE Index 12.45 9.41 O MSCI EAFE Index 10.03 14.86 Median 12.36 9.24 Median 9.86 14.99 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.82 117.32 82.55 5.91 1.12 1.58 0.97 5.05 MSCI EAFE Index 100.00 100.00 1.00 5.14 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.61 114.77 94.29 4.48 0.88 0.91 1.05 9.76 MSCI EAFE Index 100.00 100.00 0.00 1.00 9.55 27 THE (� BOGDAHN GROUP. Performance Review Templeton Global (FBNRX) As of June 30. 2015 Peer Group Analysis - IM Global Fixed Income (MF) 11.00 30.00 8.00 25.00 5.00 - • 20.00 2.00 15.00 -1.00 O 10.00 E c v v K K -4.00 5.00 -7.00 0.00 -10.00 -5.00 -13.00 -10.00 -16.00 -15.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 e Templeton Global (FBNRX) -0.24 (10) -1.65 (36) -1.59 (32) 2.82 (22) 4.50 (2) N/A N/A O Templeton Global (FBNRX) 6.33 (12) 3.54 (3) N/A N/A N/A N/A O Citigroup World Gvt Bond -1.55 (41) -5.45 (91) -9.02 (91) -1.40 (93) -2.45 (96) -1.19 (92) 1.05 (89) O Citigroup World Gvt Bond -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) Median -1.91 -3.45 -4.85 0.83 1.17 1.39 2.63 Median 3.53 -1.52 7.19 1.61 7.82 13.86 Comparative Performance 7N� Tum 28 /( BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Templeton Global (FBNRX) 0.25 (45) -1.67 (76) 0.06 (15) 2.68 (40) 0.75 (95) 2.72 (1) Citigroup World Gvt Bond -2.51 (100) -1.49 (71) -3.78 (92) 2.27 (53) 2.66 (41) -1.09 (90) IM Global Fixed Income (MF) Median 0.08 -1.04 -1.64 2.39 2.42 0.64 7N� Tum 28 /( BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 9.0 4.50 4.77 y 0.0 • Templeton Global (FBNRX) Over O O N/A x Performance O w 25.0 O Z 6.0 O Citigroup World Gvt Bond 1.05 50.0 m X • AMO 75.0 O = 3.0 A a O O O Median K 0 c7 0.0 c 5.38 OO O Under 100.0 I O w -3.0 I Performance 9/10 3/11 9/11 3/12 E 9/13 3/14 9/14 6/15 1 v -6.0 Up Down 6.0 9.0 5 -25 -6.0 -3.0 75 -95 0.0 3.0 Count Count Count Count Citigroup World Gvt Bond ( %) Alpha • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 6.00 is 3.00 0.00 v -3.00 -6.00 1 1 4.32 4.41 4.50 4.59 Risk (Standard Deviation %) Return Performance Review Templeton Global (FBNRX) As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 4.50 4.77 y 0.0 • Templeton Global (FBNRX) N/A O O N/A O Citigroup World Gvt Bond O w 25.0 O O Citigroup World Gvt Bond 1.05 50.0 JL0 Median AMO 75.0 O O O O O Median K 5.38 OO O Under 100.0 I I I Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 1 Tracking Up Down 6.0 9.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count N 4.68 4.77 Standard Deviation 4.86 A Templeton Global (FBNRX) 3 O Citigroup World Gvt Bond 20 Peer Group Scatterg ram - 5 Years 3.00 is 2.40 1.80 v 1.20 O 0.60 5.30 5.32 3(100%) 0 (0 %) 0 (0 %) 0 (0 %) 1 (5 %) 2 (10 %) 1 (5 %) 16 (80 %) 5.34 5.36 5.38 Risk (Standard Deviation %) Return Standard Deviation 5.40 • Templeton Global (FBNRX) 4.50 4.77 • Templeton Global (FBNRX) N/A N/A O Citigroup World Gvt Bond -2.45 4.33 O Citigroup World Gvt Bond 1.05 5.33 Median 1.17 4.34 Median 2.63 5.38 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global (FBNRX) 4.78 104.40 8.79 5.86 1.44 0.94 0.50 2.95 Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 -0.56 1.00 3.64 Historical Statistics - 5 Years Tracking Up Market Down Market Alpha Information Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Templeton Global (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 0.21 1.00 3.77 ORA PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 8.00 6.00 4.00 O 0 - � 2.00 � • C' K 0.00 1 ■ -2.00 -4.00 0 Comparative Performance Performance Review Galliard Core Fixed Inc As of June 30. 2015 20.00 17.00 14.00 11.00 8.00 - ■ 5.00 2.00 - -1.00 Efift -4.00 -7.00 J Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Galliard Core Fixed Inc 3.15 (38) -0.64 (75) 5.82 (47) 4.16 (27) 9.63 (18) 12.08 (39) • Barclays Int Agg Index 2.74 (59) -0.71 (78) 4.31 (85) 4.22 (22) 7.52 (78) 9.69 (81) Median 2.87 -0.27 5.59 3.60 8.28 11.53 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc -0.64 (59) 1.97 (27) 2.07 (23) 2.86 (36) 2.09 (48) 3.09 (38) 3.46 (34) • Barclays Int Agg Index -0.67 (62) 1.85 (38) 1.89 (34) 2.68 (49) 1.74 (73) 2.61 (75) 2.89 (75) Median -0.61 1.75 1.76 2.66 2.04 2.93 3.20 Comparative Performance Performance Review Galliard Core Fixed Inc As of June 30. 2015 20.00 17.00 14.00 11.00 8.00 - ■ 5.00 2.00 - -1.00 Efift -4.00 -7.00 J Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Galliard Core Fixed Inc 3.15 (38) -0.64 (75) 5.82 (47) 4.16 (27) 9.63 (18) 12.08 (39) • Barclays Int Agg Index 2.74 (59) -0.71 (78) 4.31 (85) 4.22 (22) 7.52 (78) 9.69 (81) Median 2.87 -0.27 5.59 3.60 8.28 11.53 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Galliard Core Fixed Inc 1.51 (41) 1.10 (24) 0.09 (27) 1.65 (24) 1.43 (31) -0.05 (83) Barclays Int Agg Index 1.32 (80) 1.20 (18) 0.03 (40) 1.62 (28) 1.20 (52) -0.14 (93) IM U.S. Intermediate Duration (SA +CF) Median 1.47 0.93 0.01 1.40 1.22 0.20 W PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.5 Over U 10.0 Performance w i • x 7.5 LL + • U! o 5.0 U v 2.5 0.0 1 1 1 0.0 2.5 5.0 7.5 Barclays Int Agg Index ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.20 Performance Review Galliard Core Fixed Inc As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 2.09 2.09 • Galliard Core Fixed Inc y 0.0 2.31 • Barclays Int Agg Index 1.74 1.92 w 25.0 0 ° 0 00 2.89 0 2.05 Median 2.04 1.95 o 3.20 O! EL 50.0- 0 0 00 00 0 0 r Under w 75.0 0 0 0 00 0 (46 0 00 00 0 Performance Information Sharpe Error 1 100.0 Alpha Ratio Ratio Beta 10.0 12.5 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 5 -25 25- Median Median -75 75 -95 99.88 Total Period 0.95 0.92 1.05 1.30 Barclays Int Agg Index 0.00 100.00 Count 0.00 Count Count Count C 2.00 E 1.80 O 1.60 1.88 1.92 1.96 2.00 2.04 2.08 2.12 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.60 3.40 3.20 «' 3.00 2.80 0 2 60 6 (30 %) 12 (60 %) 0 (0 %) 2 (10 %) 0 (0 %) 0 (0 %) 10 (50 %) 10 (50 %) 1 1 1 2.16 2.00 2.05 2.10 2.15 2.20 Risk (Standard Deviation %) Return X 2.25 2.30 Standard Deviation 2.35 • Galliard Core Fixed Inc 2.09 2.09 • Galliard Core Fixed Inc 3.46 2.31 • Barclays Int Agg Index 1.74 1.92 • Barclays Int Agg Index 2.89 2.05 Median 2.04 1.95 Median 3.20 2.25 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.36 108.81 99.88 0.26 0.95 0.92 1.05 1.30 Barclays Int Agg Index 0.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.52 110.08 93.50 0.48 1.07 1.54 1.03 1.12 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 ca THE (� BOGDAHN ``� GROUP. Peer Group Analysis - IM U.S. TIPS (SA +CF) 6.00 17.00 14.00 4.00 11.00 8.00 2.00 5.00 E c > > � 0 2.00 O 0.00 O O -1.00 0 J 0 - -4.00 - -2.00 O -7.00 - -10.00 - -4.00 -13.00 Performance Review Galliard TIPS As of June 30. 2015 32 THIS BOGDAHN GROUP Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Galliard TIPS -0.44 (28) 0.22 (49) -1.72 (36) 0.90 (78) -0.41 (27) 1.12 (92) 2.28 (95) • Galliard TIPS 0.59 (86) -3.71 (10) 6.01 (98) 6.73 (96) 7.28 (94) 3.97 (88) • Barclays US TIPS 1 -10 Yr -0.15 (17) 0.04 (72) -1.95 (70) 0.78 (93) -0.54 (58) 1.12 (92) 2.36 (89) • Barclays US TIPS 1 -10 Yr 0.61 (79) -3.90 (19) 6.32 (93) 7.19 (85) 7.40 (93) 4.02 (87) Median -1.07 0.20 -1.81 1.21 -0.52 2.26 3.30 Median 1.53 -5.62 9.02 9.54 9.36 6.02 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Galliard TIPS 1.90 (1) -1.21 (94) -1.94 (25) 2.90 (85) 1.17 (77) -1.46 (32) Barclays US TIPS 1 -10 Yr 1.20 (91) -1.00 (87) -1.99 (36) 2.94 (83) 1.03 (88) -1.30 (16) IM U.S. TIPS (SA +CF) Median 1.45 -0.14 -2.03 3.72 1.94 -1.97 32 THIS BOGDAHN GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over Performance .... 8.0 a_ ~ 4.0 v A A 0.0 0 4.0 1 1 -4.0 0.0 4.0 Barclays US TIPS 1 -10 Yr ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years -0.30 -0.35 emsS -0.40 • -0.45 -0.50 -0.55 1 1 1 3.99 4.18 4.37 4.56 4.75 Risk (Standard Deviation %) Return Performance Review Galliard TIPS As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years -0.41 4.32 y 0.0 2.28 3.85 O Barclays US TIPS 1 -10 Yr A K 4.18 • Barclays US TIPS 1 -10 Yr w 25.0 c 3.81 Median 0 v � 50.0 -� `w EL 5.15 Median 3.30 75.0 5.13 Historical Statistics - 3 Years Under v ee8e ®geeeee00e Performance 0 e ®O 1 100.0 Tracking Up Down 8.0 12.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 5 -25 25- Median Median -75 75 -95 Total Period Ratio Beta Risk Count Count Count Count 4.94 5.13 Standard Deviation 5.32 0 Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 3.74 e 3.40 3.06 «' 2.72 K ^ 2.38 ("C7) 2.04 1 3.50 3.75 4.00 0 (0 %) 1 (5 %) 1 (5 %) 18 (90 %) 0 (0 %) 0 (0 %) 1 (5 %) 19 (95 %) 1 1 1 4.25 4.50 4.75 5.00 5.25 Risk (Standard Deviation %) Return Standard Deviation 5.50 • Galliard TIPS -0.41 4.32 • Galliard TIPS 2.28 3.85 O Barclays US TIPS 1 -10 Yr -0.54 4.18 • Barclays US TIPS 1 -10 Yr 2.36 3.81 Median -0.52 5.15 Median 3.30 5.13 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.99 99.52 96.86 0.15 0.14 -0.09 1.03 3.00 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 -0.14 1.00 2.99 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.05 97.88 98.42 -0.08 -0.07 0.59 1.01 2.47 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 2.40 33 THE [� BOGDAHN GROUP. Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 5.78 20.00 4.92 17.00 4.06 - 14.00 3.20 - 11.00 2.34 - ' 8.00 ■ c c 1.48 0 0 5.00 - 0.62 2.00 • -0.24 • C' - -1.10 -1.00 - -1.96 -2.82 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) -0.22 (37) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index -0.21 (37) 1.39 (13) 1.30 (11) 2.54 (10) 2.54 (15) 2.80 (24) 3.26 (25) Median -0.37 0.96 0.73 1.63 1.42 2.07 2.36 Comparative Performance -4.00 Performance Review VG ST Bond Index (VSCSX) As of June 30. 2015 • -7.00 J Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 2.46 (27) 1.47 (15) 6.29 (30) 1.83 (58) 8.25 (38) 16.02 (2) Median 1.71 -0.47 5.13 1.99 7.53 10.58 34 THIS Q- BOGDAHN -'O* GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 VG ST Bond Index (VSCSX) 1.04 (55) N/A N/A N/A N/A N/A Barclays US Corp 1 -5 Yr Index 1.24 (20) 0.36 (34) -0.09 (24) 0.97 (42) 0.82 (49) 0.73 (18) IM U.S. Intermediate Investment Grade (MF) Median 1.07 0.26 -0.25 0.92 0.80 0.28 34 THIS Q- BOGDAHN -'O* GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 26.00 23.00 - 20.00 - 17.00 - 14.00 - 0 0 0 0 0 00 E 11.00 - 0 0 8.00 5.00 2.00 -1.00 -4.00 1 1 1 1 50.00 35.00 20.00 1 _ 00 00 5.00 -10.00 E K -25.00 -40.00 -55.00 -70.00 -85.00 Performance Review American Core RE As of June 30. 2015 0 0 W 0 35 PSN THIS Q BOGDAHN � GROUP QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Oct -2013 To Sep -2014 Oct -2012 Oct -2011 Oct -2010 To To To Sep -2013 Sep -2012 Sep -2011 Oct -2009 Oct -2008 To To Sep -2010 Sep -2009 • American Core RE 3.75 (47) 10.31 (60) 14.02 (47) 13.28 (71) 12.64 (72) 12.54 (65) 13.54 (71) O American Core RE 12.49 (67) 12.27 (71) 11.56 (70) 16.11 (76) 2.71 (77) 32.42 (35) • American Core RE Policy 3.82 (46) 10.84 (53) 14.43 (46) 13.59 (61) 13.11 (66) 12.94 (60) 14.06 (62) O American Core RE Policy 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 5.84 (53) 22.09 (5) Median 3.72 10.99 13.86 13.65 13.57 13.23 14.78 Median 12.90 13.18 12.90 16.62 6.39 34.80 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 American Core RE 4.46 (25) 1.80 (94) 3.36 (50) 2.80 (65) 3.20 (39) 2.59 (77) American Core RE Policy 3.39 (57) 3.26 (55) 3.24 (57) 2.93 (60) 2.52 (62) 3.17 (52) IM U.S. Open End Private Real Estate (SA +CF) Median 3.55 3.50 3.35 3.15 2.81 3.22 35 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 20.0 Over Performance w 10.0 v 0.0 • U � • w -10.0 E a 20.0 1 1 -20.0 -10.0 0.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 13.95 13.64 13.33 «' 13.02 O v K 12.71 12.40 1 0.60 0.80 1.00 Performance Review American Core RE As of June 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 12.64 1.35 y 0.0 p 0 0 0 0 0 13.54 1.45 O American Core RE Policy O 0.94 w 25.0 1.36 Median 13.57 O 1.83 Median ' O O 3.00 Historical Statistics - 3 Years 50.0 - 00 a Q 75.0 60000068 Tracking Up X75.0 Information Sharpe Downside Error Market Market Alpha 100.0 Ratio Beta Risk Under Capture Capture Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 1 96.58 N/A 3.22 -0.36 10.0 20.0 5 -25 25- Median Median -75 75 -95 100.00 Total Period Count Count Count Count 1 1 1.20 1.40 1.60 1.80 Risk (Standard Deviation %) Return Standard Deviation 2.00 American Core RE 20 American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 15.17 14.76 14.35 w 13.94 O K 13.53 Q 13.12 1 0.90 1.20 1.50 0 (0 %) 4 (20 %) 9 (45 %) 7 (35 %) 7 (35 %) 1 (5 %) 11 (55 %) 1 (5 %) 1 1 1 1.80 2.10 2.40 2.70 3.00 Risk (Standard Deviation %) Return Standard Deviation 3.30 • American Core RE 12.64 1.35 • American Core RE 13.54 1.45 O American Core RE Policy 13.11 0.94 • American Core RE Policy 14.06 1.36 Median 13.57 1.83 Median 14.78 3.00 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.20 96.58 N/A 3.22 -0.36 8.90 0.71 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 13.15 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 RE 1.22 96.48 N/A 4.07 -0.39 8.96 0.67 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 1.00 0.00 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 26.00 23.00 20.00 17.00 14.00 00 O O WA C Q E v 11.00 O O 8.00 5.00 - 2.00 - 0 -1.00 - -4.00 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 3.37 (59) 9.93 (64) 14.09 (47) 14.03 (36) 15.09 (28) 14.76 (28) N/A • NCREIF Fund Index 3.82 (46) 10.84 (53) 14.43 (46) 13.59 (61) 13.11 (66) 12.94 (60) 14.41 (59) Median 3.72 10.99 13.86 13.65 13.57 13.23 14.78 Comparative Performance Performance Review Intercontinental As of June 30. 2015 50.00 35.00 20.00 ■ O 5.00 ■ -10.00 E v K -25.00 -40.00 -55.00 70.00 -85.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 • Intercontinental 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (77) • NCREIF Fund Index 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) Median 12.90 13.18 12.90 16.62 Oct -2009 Oct -2008 To To Sep -2010 Sep -2009 N/A N/A 6.97 (43) 35.19 (52) 6.39 34.80 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Intercontinental 1.18 (100) 5.10 (14) 3.79 (26) 2.42 (90) 1.89 (81) 5.35 (3) NCREIF Fund Index 3.39 (57) 3.26 (55) 3.24 (57) 2.93 (60) 2.52 (62) 3.17 (52) IM U.S. Open End Private Real Estate (SA +CF) Median 3.55 3.50 3.35 3.15 2.81 3.22 37 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over r. Performance °- 16.0 e r 9 E Qo r 14.0 0 U 1� 12.0 10.0 1 1 10.0 12.0 14.0 16.0 NCREIF Fund Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 15.84 15.18 14.52 «' 13.86 v K 13.20 Q 12.54 1 1 1 1 Performance Review Intercontinental As of June 30. 2015 L91 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation lb Intercontinental 8 • NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 15.00 14.80 14.60 14.40 O 14.20 1 1.30 1.56 1.82 1 (13 %) 7 (88 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 1 1 1 2.08 2.34 2.60 2.86 3.12 Risk (Standard Deviation %) Return Standard Deviation 3.38 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 2.88 • Intercontinental N/A / y 0.0 13.11 0.94 O NCREIF Fund Index 14.41 1.63 v 25.0 1.83 Median 0 0 0 0 0 0 0 Historical Statistics - 3 Years 0 Tracking Up �50.0_000000Q00OO Information Sharpe Downside Error Market Market = Ratio Ratio Beta 000000000 Capture Capture 75.0 Intercontinental 3.04 114.55 N/A 15.76 0.60 4.97 -0.05 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A Under 1.00 100.0 1 1 Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 18.0 Downside Error Market 5 -25 25- Median Median -75 Ratio 75 -95 Risk Capture Total Period Count Count Count Count L91 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation lb Intercontinental 8 • NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 15.00 14.80 14.60 14.40 O 14.20 1 1.30 1.56 1.82 1 (13 %) 7 (88 %) 0 (0 %) 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 1 1 1 2.08 2.34 2.60 2.86 3.12 Risk (Standard Deviation %) Return Standard Deviation 3.38 • Intercontinental 15.09 2.88 • Intercontinental N/A N/A • NCREIF Fund Index 13.11 0.94 O NCREIF Fund Index 14.41 1.63 Median 13.57 1.83 Median 14.78 3.00 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.04 114.55 N/A 15.76 0.60 4.97 -0.05 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A 1.00 0.00 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 100.00 N/A 1.00 0.00 38 PSN THIS Q BOGDAHN � GROUP Page Intentionally Left Blank 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 June 30, 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: 40 BOGDAHN GROUP. Compliance Checklist Total Fund Winter Springs GE As of June 30, 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. 41 Vanguard RBC Global Gaillard 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 7 Yes No NIA Yes No NIA TIPS VSCSX Yes No NIA 7 Yes No NIA Yes No NIA Disclosures Total Fund As of June 30, 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: 42 BOGDAHN GROUP. Performance Measurement 863 - 904 -0856 Do n n a S@ bogda h ngrou p. com Direct Phone: E� 43 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. 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. 44 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. 45 THE BOGDAHN GRoup,,,. simplif h' q your Mvestment and fidneimy decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland I Detroit I Milwaukee I Pittsburgh