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HomeMy WebLinkAbout2015 11 19 Regular 600 Quarterly Investment Performance ReviewWWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 3rd Quarter 2015 THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 3rd Quarter 2015 Market Environment THE: BOGDAHN GROUP. ■ During the third quarter of 2015, broad equity markets posted their weakest returns since the third quarter of 2011. Macroeconomic and geopolitical news drove the volatility of global equity markets throughout the quarter. Domestic markets fared modestly better than international indices but still posted negative returns for the quarter. Improving domestic economic data was overshadowed by the Federal Open Market Committee's (Fed) decision to leave short -term interest rates unchanged, citing low inflation expectations and a weakening global economy as reasons to maintain an accommodative monetary policy. The uncertainty surrounding the Fed's rate decision caused investors to accelerate sales out of risk assets. As a result, the S &P 500 experienced its first correction since 2011, falling 12.0% from its intra - quarter high. ■ Non -U.S. equity indices posted the weakest equity returns during the quarter with all three bellwether benchmarks posting double -digit losses in U.S. dollars (USD) during the third quarter. Export heavy emerging markets were the hardest hit during the quarter with a USD return of - 17.9 %. Similar to domestic equity markets, the negative results of international equity markets were driven by macroeconomic events. As the world's second largest economy and largest exporter of goods, China's slowing economic growth prospects dominated headlines throughout the quarter. While the potential impact of a Chinese slowdown resonated throughout the financial markets, emerging market and commodity driven economies experienced the greatest negative impact. In addition to China's events, Greece secured its third bailout from the European Union (EU) and Japan, and EU policymakers signaled further quantitative easing may be necessary to combat deflationary concerns. ■ U.S. fixed income indices were modestly positive for the third quarter, with high yield securities and TIPS being exceptions. The U.S. Treasury yield curve flattened during the quarter with short -term interest rates remaining relatively unchanged and longer term rates declining. As a result of this flattening, longer dated maturities outperformed short -term issues. Quarter Performance MSCI ACWxUS -12.2% C MSCI EAFE -10.2% MSCI Emerg Mkts -17.9% 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 - 11.9% The Market Environment Major Market Index Performance As of September 30, 2015 -6.4% -7.2% [ -6.8% -8.0% F_ -20.0% -15.0% -10.0% 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 3 -Month T -Bill 1.2% 1.7% 1.3% 0.8% 0.0% -5.0% 0.0% 5.0% - 12.2% -8.7% - 19.3% -0.6% -0.5% -0.6% -0.2% 1.2% 2.9% -0.8% 3.7% 3.4% 1.7% 0.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% Source: Investment Metrics THk: 2 BOGDAHN GROUP. ■ Regardless of style or size, domestic equity index performance was negative across the style and capitalization spectrum during the third quarter. While most broad corporate fundamentals appeared to be solid and the U.S. consumer benefited from lower oil prices, negative performance during the third quarter was largely driven by the volatility associated with global macroeconomic and geopolitical events. Chief factors driving volatility during the quarter included the "will they - won't they" uncertainty associated with the Fed's interest rate decision and attempts to assess the global ramifications of an economic slowdown in China, which was larger than anticipated. • Outside of macroeconomic and geopolitical factors impacting equity performance, there were two notable trends affecting U.S. domestic equity results during the third quarter of 2015. First, large cap indices generally outperformed their small cap counterparts, with the latter delivering double -digit losses for the quarter. Second, growth stocks were the strongest relative performers in the large cap universe, while in the small cap universe value indices posted moderately better relative results. Within the large cap Russell 1000 Growth Index, the quarter's relative performance benefited from the annual reconstitution of the index series each June. This year's reconstitution reduced exposure to the weak performing energy sector in the large cap growth index from more than 5% to less than 1 % after reconstitution.. ■ From a valuation perspective, current P /Es for the value indices were roughly in -line with their long -term averages with the mid -cap value index P/E appearing slightly stretched at 106% of its long -term average. In contrast, current P/E valuations for the growth indices remained well below their long -term averages with P/E valuation levels falling between 80% and 85% of their historical averages. ■ On a trailing one -year basis, growth indices illustrated a substantial return premium over value benchmarks across the capitalization spectrum. The performance differentials were largely due to the growth benchmarks' heavier weights to the strong - performing health care and information technology sectors. Source: Investment Metrics 3 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 September 30, 2015 Quarter Performance - Russell Style Series -8.6% -7.2% -5.9% -8.4% -6.8% -8.0% -8.0% -8.0% - 10.7% - 11.9% -13.1 -15.0% -10.0% -5.0% 1 -Year Performance - Russell Style Series 3000 Value -4.2%1 3000 Index 3000 Growth 1000 Value -4.4% 1000 Index 1000 Growth MidCap Value -2.1% MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth -6.0% -4.0% -1.6% 0.0% -0.5% 3.290 -0.6% 3.2 ° -0.2% 1.4% 4.0% -2.0% 0.0% 2.0% 4.0% 6.0% THE, BOGDAHN GROUP. The Market Environment GICS Sector Performance & (Sector Weight) As of September 30, 2015 Sector performance was broadly negative for large cap stocks with Russell 1000 ❑Quarter 01 -Year nine of the ten GICS sectors posting negative results for the quarter. Consumer Disc (13.3 %) The utilities sector was the only large cap economic sector that managed a positive result for the quarter with a return of 4.6 %. Consumer Staples (8.7 %) Commodity price driven sectors were the hardest hit during the quarter with the energy and materials sectors returning -18.4% and -16.8% Energy (7.1 %) respectively. The large cap health care sector, which had not posted a Financials (17.5 %) negative quarterly return since the third quarter of 2011, was also notable with a return of -11.1 % for the quarter. Within the health care Health Care (15.0 %) sector, pharmaceutical and biotech stocks struggled from the general Industrials (10.6 %) "risk -off' environment permeating the third quarter but sold -off deliberately after Democratic presidential candidate Hillary Clinton Info Technology (19.3 %) alluded to a plan to combat high prescription drug costs. Traditional defensive sectors, such as utilities and consumer staples, posted the Materials (3.3 %) strongest relative performance for the quarter. Over the one -year Telecom Services (2.2 %) trailing period, six of ten sectors remain positive with commodity driven energy (- 31.4 %) and materials (- 17.3 %) sectors representing double- Utilities (2.9 %) digit negative outliers. -35.0% -25.0% -15.0% -5.0% 5.0% 15.0% Similar to large cap indices, small cap index performance was negative Russell 2000 1 ❑Quarter ❑1 -Year 11.2% 6.7% 6.2 % 1.8% 4.6% 4.9% for the quarter. Within the small cap index, all ten GICS sectors posted Consumer Disc (14.6 %) negative results for the quarter with six sectors posting double -digit losses. For the quarter, sector performance followed a similar pattern Consumer Staples (3.1 %) to large cap sector results with commodity sensitive sectors posting the weakest results and defensive sectors offering the greatest relative Energy (3.4 %) safety. Over the one -year trailing period, six of ten small cap index Financials (24.5 %) sectors remained positive with commodity driven energy (- 55.0 %) and materials (- 21.3 %) sectors representing substantial double -digit Health Care (16.6 %) negative outliers. Industrials (12.6 %) Using the S &P 500 as a proxy, based on trailing P/E ratios, six GICS Info Technology (17.1 %) sectors show P/E ratios lower than their 20 -year averages at quarter end. Within these sectors, the information technology and financials Materials (3.8 %) sectors appeared the most undervalued relative to their long -term Telecom Services (0.8 %) average P/E ratios. In contrast, the telecommunication services and utilities sector valuations appeared most stretched versus historical P/E Utilities (3.4 %) 5.4% 5. % 8.1 % 16.2% 7.5% 0.4% 9.9% ratio data. -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% Source: Morningstar Direct [ UL 4 BOGDAHN GROUP. Russell 1000 Apple Inc Top 10 Weighted Weight 3.28% Stocks 1-Qtr Return - 11.7% 1-Year Return 11.3% Sector Information Technology Microsoft Corp 1.85% 0.9% -2.0% Information Technology Exxon Mobil Corporation 1.61% -9.8% - 18.3% Energy Johnson & Johnson 1.34% -3.5% -9.9% Health Care General Electric Co 1.31% -4.2% 2.0% Industrials Berkshire Hathaway Inc Class B 1.25% -4.2% -5.6% Financials Wells Fargo & Co 1.24% -8.1% 1.6% Financials JPMorgan Chase & Co 1.17% -9.4% 3.9% Financials AT &T Inc 1.02% -7.0% -2.3% Telecommunication Services Procter & Gamble Co 1.01% -7.3% -11.4% Consumer Staples ITop US rm StanCorp Financial Group Inc r 0.02% Quarter) 1-Qtr 51.0% 84.3% 1 Financials TECO Energy Inc 0.03% 50.2% 58.0% Utilities Pandora Media Inc 0.02% 37.3% - 11.7% Information Technology Cablevision Systems Corp Class A 0.03% 36.4% 90.7% Consumer Discretionary zulily Inc Class 0.00% 33.4% - 54.1% Consumer Discretionary AGL Resources Inc 0.04% 32.5% 23.7% Utilities Chubb Corp 0.15% 29.5% 37.5% Financials Activision Blizzard Inc 0.08% 27.6% 50.1% Information Technology Con -way Inc 0.00% 24.2% 1.3% Industrials JetBlue Airways Corp 0.04% 24.1% 142.7% Industrials " . e ' 0.31% r c 0.01% 76.0% 62.0% Information Technology nergy Inc 0.00% - 69.2% - 93.7% Energy en Energy Inc 0.00% -67.8% - 94.2% Energy TimkenSteel Corp 0.00% - 62.2% - 77.7% Materials TerraForm Power Inc Class A 0.00% -62.0% - 48.9% Utilities Rayonier Advanced Materials Inc 0.00% - 61.9% -81.0% Materials Denbury Resources Inc 0.00% -61.0% - 83.1% Energy The Chemours Co 0.01% - 59.6% N/A Materials EP Energy Corp Class A 0.00% -59.5% -70.5% Energy Unit Corp 0.00% 58.5% 80.8% Energy Source: Morningstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of September 30, 2015 OF Irussell 000 Imm Tyler Technologies Inc 0.31% 15.4% 1-Year Return 68.9% Sector Information Technology Anacor Pharmaceuticals Inc 0.29% 52.0% 381.0% Health Care Manhattan Associates Inc 0.28% 4.4% 86.4% Information Technology CubeSmart 0.28% 18.2% 55.4% Financials Investors Bancorp Inc 0.26% 1 0.7% 24.4% Financials First American Financial Corp 0.26% 5.7% 48.2% Financials Casey's General Stores Inc 0.24% 7.7% 44.9% Consumer Staples Maximus Inc 0.24% -9.3% 48.9% Information Technology West Pharmaceutical Services Inc 0.24% -6.7% 21.9% Health Care Team Health Holdings Inc 0.24% - 17.3% -6.8% Health Care Top r Quarter) Russell 20 Weight =6�;j GT Advanced Technologies Inc 0.00% 135.7% -96.3% Information Technology NTELOS Holdings Corp 0.01% 95.5% - 15.1% Telecommunication Services Phoenix Companies Inc 0.00% 80.9% - 41.2% Financials Trevena Inc 0.02% 65.3% 61.2% Health Care Dot Hill Systems Corp 0.04% 59.0% 157.4% Information Technology Anacor Pharmaceuticals Inc 0.29% 52.0% 381.0% Health Care Exelixis Inc 0.08% 49.2% 266.7% Health Care Merge Healthcare Inc 0.03% 47.9% 222.7% Health Care HHGregg Inc 0.00% 45.8% -22.8% Consumer Discretionary Thoratec Corp 0.21% 41.9% 136.7% Health Care Quarter) Russell rrr Quiksilver Inc 0.00% -97.0% - 98.9% Consumer Discretionary RCS Capital Corp Class A 0.00% - 89.4% -96.4% Financials Alpha Natural Resources Inc 0.00% - 89.1% - 98.7% Energy BPZ Resources Inc 0.00% -88.8% - 99.9% Energy SFX Entertainment Inc 0.00% - 88.6% -89.8% Consumer Discretionary Penn Virginia Corp 0.00% - 87.9% -95.8% Energy Vantage Drilling Co 0.00% -86.5% -98.0% Energy Tetraphase Pharmaceuticals Inc 0.02% - 84.3% - 62.6% Health Care Altisource Asset Management Corp 0.00% - 83.4% -96.5% Financials Magnum Hunter Resources Corporation 0.00% -81.8% - 93.9% Energy THIE [� BOGDAHN `� GROUP ■ With negative macroeconomic and geopolitical events throughout the quarter trumping any consideration of underlying fundamentals or long -term prospects, international equity index performance was broadly negative. As stated previously, uncertainty over events, such as China's economic health and a potential Greek exit of the eurozone, pushed all major international equity indices lower. While developed markets fared modestly better than emerging markets, the majority of foreign market results struggled relative to the perceived safety and stability of U.S. markets. Local currency index returns were marginally less negative than USD returns due to the strengthening of the USD versus most other major currencies. ■ Developed markets outperformed emerging markets for the quarter with the MSCI EAFE Index outperforming the MSCI Emerging Market Index by 7.7% and 3.1% in USD and local currency respectively. Improving economic data in the eurozone was encouraging, with GDP growth for the ninth consecutive quarter, but economic data in Japan was mixed. Both European Central Bank Chairman Draghi and Bank of Japan Governor Kuroda reiterated a willingness to support further quantitative easing should it be deemed necessary. Commodity price sensitive economies such as Canada, Australia, and several emerging markets faced particularly strong headwinds due to the headlines surrounding slowing growth in China. ■ Emerging markets posted large negative equity results for the quarter. Led by the imposition of capital controls associated with its latest bailout deal with the EU, Greece represented the weakest performance in the MSCI Emerging Markets Index, returning -35.8% for the quarter. Chinese equities fell -22.7% during the quarter after a devaluation of the yuan and mounting evidence of decelerating economic growth. Latin America had the weakest performance as falling commodity prices and a weakened macro outlook in Brazil negatively affected the region. Like developed markets, countries with more diversified economies performed better than economies heavily linked to commodity exports. Source: MSCI Global Index Monitor (Returns are Net) The Market Environment International and Regional Market Index Performance (Country Count) As of September 30, 2015 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 Quarter Performance I oUSD ❑Local Currency -12.2% -9.6% -10.6% -8.9 /o -10.2% -9.0 ro -8. -6.9% -13.2% -12.8% -17.9% 12.1% -16.1% -7.5% -17.0% -13.5% 24.3% -10.8% -25.0% 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) -20.0% -15.0% -10.0% -5.0% 0.0% 1 -Year Performance I oUSD ❑Local Currency -40.0% -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% ^\ [ UL BOGDAHN GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 13.1% -11.0% -0.7% Consumer Staples 12.0% -1.5% 1.7% Energy 4.8% -16.8% -34.5% Financials 25.8% -12.1% -9.2% Health Care 11.8% -5.3% -3.2% Industrials 12.5% - 11.2% -8.9% Information Technology 4.8% - 10.6% -5.8% Materials 6.6% - 19.7% -22.1% Telecommunication Services 4.9% -9.5% -3.3% Utilities Total 3.8% 00 -4.2% -11.0% -10.5% Netherlands 2.8% 2.0% Consumer Discretionary 12.0% Quarter - 11.3% -3.2% Consumer Staples 10.9% -3.2% -0.6% Energy 6.3% -20.1% -37.2% Financials 27.3% -14.1% - 12.3% Health Care 9.6% -6.2% -2.3% Industrials 11.1% - 11.7% - 11.2% Information Technology 7.4% - 13.3% -8.6% Materials 6.7% -20.8% -26.2% Telecommunication Services 5.2% - 11.3% -8.8% Utilities Total A 3.6% it r -7.0% - 14.2% Consumer Discretionary 9.4% - 13.9% - 15.6% Consumer Staples 8.8% - 11.4% -12.1% Energy 7.5% - 25.3% - 37.4% Financials 28.6% - 21.4% -18.1% Health Care 2.9% -9.5% -8.1% Industrials 7.5% -16.0% -17.8% Information Technology 18.1% -16.0% - 11.3% Materials 6.6% - 19.4% -30.0% Telecommunication Services 7.4% - 15.6% -20.1% Utilities Total 3.4% 100.0% -16.8% -24.5% Sweden 3.0% 2.2% -9.2% Source: MSCI Global Index Monitor (Returns are Net in USD) The Market Environment U.S. Dollar International Index Attribution & Country Detail As of September 30, 2015 Japan 22.5% 16.5% -11.8% -2.2% United Kingdom 20.3% 14.8% -10.0% -12.1% France 10.1% 7.4% -6.5% -7.7% Switzerland 9.7% 7.1% -7.0% -3.8% Germany 8.9% 6.5% - 10.9% -9.3% Australia 6.4% 4.7% - 15.3% -21.1% Spain 3.5% 2.5% -11.1% -20.6% Hong Kong 3.0% 2.2% - 16.2% -3.3% Sweden 3.0% 2.2% -9.2% -10.5% Netherlands 2.8% 2.0% -8.9% -2.0% Italy 2.6% 1.9% -4.4% -9.3% Denmark 1.8% 1.3% -2.4% 6.7% Belgium 1.3% 1.0% -7.9% -0.8% Singapore 1.3% 0.9% -19.5% - 21.4% Finland 0.9% 0.6% -5.5% -8.8% Israel 0.6% 0.5% -5.6% 2.6% Norway 0.6% 0.4% -19.1% - 35.9% Ireland 0.4% 0.3% -3.2% 10.9% Austria 0.2% 0.1% -9.0% Portugal 0.2% 0.1% - 11.6% New Zealand 0.1 % 0.1 % -7.1 % "-25.5% Canada Total Developed Countries 6.4% 79.5% -14.1 % 1jr r r China 4.8% - 22.7% -5.0% Korea 3.2% -11.8% - 18.4% Taiwan 2.6% -17.0% - 11.3% India 1.8% -6.7% -5.9% South Africa 1.6% - 18.6% - 14.2% Brazil 1.3% - 33.6% - 48.4% Mexico 1.0% -12.0% -24.0% Russia 0.8% -14.8% -27.1% Malaysia 0.6% - 18.2% - 33.7% Thailand 0.5% - 17.6% - 23.7% Indonesia 0.4% - 24.2% - 32.9% Poland 0.3% -10.8% -26.3% Philippines 0.3% - 10.3% -5.7% Turkey 0.3% -19.5% - 23.8% Chile 0.3% - 13.6% - 21.2% Qatar 0.2% -6.6% -18.3% United Arab Emirates 0.2% - 10.4% -26.4% Colombia 0.1% - 23.2% -50.5% Peru 0.1% -21.5% -26.2% Greece 0.1% -35.8% -66.0% Hungary 0.1% 3.3% 6.7% Czech Republic 0.0% -6.6% - 22.3% Egypt 0.0% - 12.9% 24.3% PSN THIS Q BOGDAHN � GROUP ■ Most fixed income index performance was modestly positive for the third quarter. Much of the quarter's positive fixed income benchmark performance was attributable to macroeconomic and geopolitical uncertainty in the global markets. As it typically does, this volatility resulted in a "flight to quality /safety" benefiting domestic fixed income securities. In contrast to the benefit of perceived safety, bond performance was tempered during the period by the looming specter surrounding the timing of the first expected Fed interest rate hike in nearly ten years. ■ The broad market Aggregate benchmark posted a return of 1.2% for the quarter. Within the Aggregate index, Treasury (1.8 %) issues outperformed mortgage (1.3 %) and corporate (0.8 %) issues. In anticipation of higher interest rates, corporate bond issuance remained elevated during the quarter. Coupled with a general "risk -off' market, this excess corporate bond supply drove credit spreads wider (equivalent to interest rates rising) resulting in weaker corporate performance relative to Treasury securities. The spread widening was particularly detrimental to high yield bond returns which actually posted negative returns for the quarter. ■ Despite USD strength, international bond indices (0.6% and 0.5 %) managed positive results for the quarter but trailed domestic bond index results other than Baa, high yield, and TIPs issues. ■ Over the trailing one -year period, domestic fixed income results were largely solid. However, like the third quarter, one -year performance for domestic Baa, high yield, and TIPS issues were negative along with both global benchmarks. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of September 30, 2015 AAA (5.0) AA (5.9) A (6.9) Baa (7.5) U.S. High Yield (4.4) U.S. Treasury (5.8) U.S. Mortgage (4.2) U.S. Corporate IG (7.1) U.S. TIPS (5.5) Aggregate (5.6) Intermediate Agg (4.1) Global Agg x US (7.4) Multiverse (6.5) Quarter Performance -0.7% 1.5% 1.2% 1.5% 1.8% 4.9% 1.3% 0.8% 1.2% o.% 0.5% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% AAA (5.0) AA (5.9) A (6.9) Baa (7.5) U.S. High Yield (4.4) U.S. Treasury (5.8) U.S. Mortgage (4.2) U.S. Corporate IG (7.1) U.S. TIPS (5.5) Aggregate (5.6) Intermediate Agg (4.1) Global Agg x US (7.4) Multiverse (6.5) 1 -Year Performance 31:.6% 3.0%: 2.9% -0.5% -3.4% 3.8% 3.4% 1.7% -0.8% 2.9 %', 2.9% 7.7% 3.6% -8.0% -6.0% -4.0% -2.0% 0.0% 8 2.0% 4.0% THIS [� BOGDAHN `� GROUP ■ During the third quarter, following a substantial rise during the second quarter, intermediate and long -term U.S. Treasury yields retrenched to levels last seen at the end of 2014. Yields fell across the Treasury curve for all maturities greater than two years with the yield on the 30 -year Treasury falling from 3.11% to 2.87 %. Since prices and yields move in opposite directions, longer -dated issues were the best performing Treasury maturity segment. As with recent periods, accommodative Fed policy held yields stable and low at the short end of the yield curve. ■ Much of the performance reviewed on the bar graphs is visible in another form in the 1 -year trailing market rates chart. The 10 -year Treasury (green line) can be seen moving lower (yields falling) throughout the quarter, resulting in a positive Treasury return. While corporate issues benefited from falling Treasury yields, corporate bonds were also impacted by the credit spread (risk premium) investors demand on corporate issues to compensate them for the increased risk associated with corporate bonds versus "riskless" Treasury debt. This credit spread is represented by the BAA OAS (Option Adjusted Spread). The BAA OAS (blue line) can be seen rising throughout the quarter, which created a drag on corporate bond returns. ■ Based on moderate U.S. economic growth, stable employment, and below target inflation, it is unlikely the Fed will increase the short -term interest rate it sets (Fed Funds Rate) significantly in the near term. Should the Fed raise the short -term rate before the end of the year, they have stated future increases would be implemented at a measured pace and with an ongoing assessment of current economic data. Geopolitical events, overseas quantitative easing programs, and lower interest rates outside the U.S. should put downward pressure on how high domestic rates can go in the near term. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of September 30, 2015 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA OAS 10yr Treasury 10yr TIPS /u l 0.00 I I I I Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 12/31 /2014 --�-- 3/31 /2015 o 6/30/2015 9/30/2015 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 June 30, 2015 : $3991039168 Allocation Allocation Asset Allocation Summary Total Fund As of September 30. 2015 Asset Allocation By Segment as of September 30, 2015 : $3793449542 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 19,005,878 48.6 _ Domestic Equity 17,625,211 47.2 m International Equity 5,756,631 14.7 m International Equity 5,167,176 13.8 • Domestic Fixed Income 7,220,375 18.5 ■ Domestic Fixed Income 7,273,006 19.5 • Global Fixed Income 1,257,514 3.2 ■ Global Fixed Income 1,171,002 3.1 • Other Fixed Income 757,281 1.9 ■ Other Fixed Income 916,788 2.5 7 Real Estate 3,675,924 9.4 7 Real Estate 4,354,469 11.7 Cash Equivalent 1,429,564 3.7 Cash Equivalent 836,889 O PN� THE 10 BOGDAHN Q-,O* GROUP. Allocation Asset Allocation By Manager as of June 30, 2015 : $3991039168 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of September 30. 2015 Asset Allocation By Manager as of September 30, 2015 : $3793449542 Market Value Allocation Vanguard Total Stock Market (VITSX) 19,005,878 48.6 Vanguard Total Stock Market (VITSX) 17,625,211 47.2 RBC Global (Voyageur) 5,756,631 14.7 RBC Global (Voyageur) 5,167,176 13.8 d Galliard Core Fixed Income 4,690,720 12.0 1 Galliard Core Fixed Income 4,739,662 12.7 — Intercontinental 2,354,792 6.0 Intercontinental 2,436,960 6.5 • Receipt & Disbursement 1,405,318 3.6 American Core Realty Fund 1,940,406 5.2 • Vanguard Short Term Bond Index (VSCSX) 1,353,518 3.5 ■ Vanguard Short Term Bond Index (VSCSX) 1,361,547 3.6 American Core Realty Fund 1,336,827 3.4 Galliard TIPS 1,177,381 3.2 Templeton Global Bond Fund (FBNRX) 1,257,514 3.2 Templeton Global Bond Fund (FBNRX) 1,171,002 3.1 Galliard TIPS 1,184,688 3.0 Crescent Direct Lending Fund 916,788 2.5 Crescent Direct Lending Fund 757,281 1.9 ■ Receipt & Disbursement 808,409 2.2 PSN TuiE 11 BOGDAHN Q � GROUP Asset Allocation vs. Target Allocation Total Fund As of September 30, 2015 Asset Allocation vs. Target Allocation Total Domestic Equity -2.8% Total International Equity -1.2% Total Domestic Fixed Income 4.5% Total Global Fixed Income -1.9% Total Real Estate M1.7% Total Other Fixed Income -2.5% Receipt & Disbursement 2.2% -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 17,625,211 47.2 50.0 Total International Equity 5,167,176 13.8 15.0 Total Domestic Fixed Income 7,278,590 19.5 15.0 Total Global Fixed Income 1,171,002 3.1 5.0 Total Real Estate 4,377,366 11.7 10.0 Total Other Fixed Income 916,788 2.5 5.0 Receipt & Disbursement 808,409 2.2 0.0 Total Fund 37,344,542 100.0 100.0 T uk: 12 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 Sep -2015 808,409 2.16 37,344,542 100.00 Jun -2015 22,792,387 61.03 17,625,211 47.20 17, 625, 211 47.20 5,167,176 13.84 5,167,176 13.84 9,366,380 25.08 7,278,590 19.49 4,739,662 12.69 1,177, 381 3.15 1,361,547 3.65 1,171,002 3.14 1,171,002 3.14 916,788 2.45 916,788 2.45 4,377,366 11.72 1,940,406 5.20 2,436,960 6.53 808,409 2.16 37,344,542 100.00 Jun -2015 22,185,810 60.89 24,762,509 63.33 19,005,878 48.60 19,005,878 48.60 5,756,631 14.72 5,756,631 14.72 9,243,721 23.64 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 3.22 757,281 1.94 757,281 1.94 3,691,619 9.44 1,336,827 3.42 2,354,792 6.02 1,405,318 3.59 39,103,168 100.00 13 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 Asset Allocation Asset Allocation History By Portfolio As of September 30, 2015 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 Sep -2014 4,104,947 11.27 36,437,643 100.00 _ [ Hk: BOGDAHN GROUP. 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 _ [ 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 Domestic Equity Other Fixed Income 3/09 9/09 International Equity Real Estate 3/10 9/10 3/11 Domestic Fixed Income Cash Equivalent 14 9/11 3/12 9/12 3/13 9/13 Global Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To September 30, 2015 3/14 9/14 3/15 9/15 PSN THIS Q BOGDAHN � GROUP Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of September 30, 2015 68.0 60.0 52.0 Q 44.0 36.0 0 0 28.0 0 a 20.0 Q Q 12.0 Q 4.0 Q Q Q -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 47.20 (33) 13.84 (58) 19.49 (84) 3.14 (80) 2.45 (91) 11.72 (11) 2.16 (26) 5th Percentile 55.72 26.60 47.34 8.64 37.62 13.06 6.20 1 st Quartile 48.83 19.11 35.01 5.00 19.85 9.95 2.23 Median 42.87 14.42 29.97 4.63 11.70 7.94 1.29 3rd Quartile 31.99 12.18 22.92 3.88 5.12 5.12 0.74 95th Percentile 18.88 7.54 13.30 0.19 1.98 2.34 0.08 T uk: 15 BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending September 30, 2015 Financial Reconciliation Quarter to Date In [�Hk: BOGDAHN GROUP. Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 07/01/2015 Transfers Fees Expenses Deprec. 09/30/2015 Total Equity 24,762,509 13,818 - 13,818 -884 109,838 - 2,079,077 22,792,387 Total Domestic Equity 19,005,878 - - - 90,087 - 1,470,755 17,625,211 Vanguard Total Stock Market (VITSX) 19,005,878 - - - 90,087 - 1,470,755 17,625,211 Total International Equity 5,756,631 13,818 - 13,818 -884 19,751 - 608,322 5,167,176 RBC Global (Voyageur) 5,756,631 13,818 - 13,818 -884 19,751 - 608,322 5,167,176 Total Fixed Income 9,243,721 152,430 -3,376 -147 19,708 -45,956 9,366,380 Total Domestic Fixed Income 7,228,926 3,376 -3,376 -147 9,255 40,556 7,278,590 Galliard Core Fixed Income 4,690,720 3,376 -3,376 - - 48,942 4,739,662 Galliard TIPS 1,184,688 - - -147 2,489 -9,649 1,177,381 Vanguard Short Term Bond Index (VSCSX) 1,353,518 - - 6,766 1,263 1,361,547 Total Global Fixed Income 1,257,514 - 10,454 10,454 - 86,512 1,171,002 Templeton Global Bond Fund (FBNRX) 1,257,514 - 10,454 10,454 - 86,512 1,171,002 Total Other Fixed Income 757,281 159,507 - - 916,788 Crescent Direct Lending Fund 757,281 159,507 - - - 916,788 Total Real Estate 3,691,619 546,305 -9,540 55,217 93,764 4,377,366 American Core Realty Fund 1,336,827 546,305 -5,351 28,247 34,377 1,940,406 Intercontinental 2,354,792 - - - -4,189 - 26,970 59,387 2,436,960 Receipt & Disbursement 1,405,318 - 712,552 707,186 - 582,717 - -8,849 23 - 808,409 Total Fund Portfolio 39,103,168 - 707,186 - 582,717 - 26,734 -9,880 184,787 - 2,031,269 37,344,542 In [�Hk: BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To September 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 09/30/2015 Total Equity 22,185,810 1,053,078 - 53,078 -3,468 544,047 - 934,002 22,792,387 Total Domestic Equity 16,779,784 1,000,000 - - 361,055 - 515,628 17,625,211 Vanguard Total Stock Market (VITSX) 16,779,784 1,000,000 - - 361,055 - 515,628 17,625,211 Total International Equity 5,406,026 53,078 - 53,078 -3,468 182,992 -418,374 5,167,176 RBC Global (Voyageur) 5,406,026 53,078 - 53,078 -3,468 182,992 - 418,374 5,167,176 Total Fixed Income 7,150,591 2,156,146 - 10,120 - 36,716 132,543 - 26,063 9,366,380 Total Domestic Fixed Income 5,789,056 1,341,188 - 10,120 -3,906 38,583 123,789 7,278,590 Galliard Core Fixed Income 4,603,250 6,772 - 10,120 - - 139,760 4,739,662 Galliard TIPS 1,185,806 - - -3,906 9,460 - 13,979 1,177,381 Vanguard Short Term Bond Index (VSCSX) - 1,334,416 - 29,123 -1,992 1,361,547 Total Global Fixed Income 1,361,535 - 92,259 92,259 - 190,532 1,171,002 Templeton Global Bond Fund (FBNRX) 1,361,535 - 92,259 - 92,259 - 190,532 1,171,002 Total Other Fixed Income - 907,217 - 32,810 1,701 40,680 916,788 Crescent Direct Lending Fund 907,217 - 32,810 1,701 40,680 916,788 Total Real Estate 2,996,295 949,423 - 50,713 160,570 321,790 4,377,366 American Core Realty Fund 824,333 949,423 - 14,923 76,392 105,180 1,940,406 Intercontinental 2,171,962 - - - 35,790 - 84,178 216,610 2,436,960 Receipt & Disbursement 4,104,947 -4,158,647 3,117,773 - 2,206,117 - -49,683 136 - 808,409 Total Fund Portfolio 36,437,643 - 3,117,773 - 2,206,117 - 113,911 - 89,867 837,296 - 638,275 37,344,542 17 _ [ uk: BOGDAHN GROUP. Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of September 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) -4.79 (44) 0.28 (27) 0.28 (27) 9.08 (5) 8.82 (15) Total Fund Policy -4.63 (33) 0.57 (23) 0.57 (23) 8.83 (10) 9.58 (3) All Public Plans -Total Fund Median -5.02 5.32 -0.47 -0.47 (23) 7.15 5.38 7.81 Total Fund (New Mgrs) (Net) -4.79 (44) 0.28 (27) 0.28 (27) 9.08 (5) 8.82 (15) Total Fund Policy -4.63 (33) 0.57 (23) 0.57 (23) 8.83 (10) 9.58 (3) All Public Plans -Total Fund Median -5.02 -0.47 5.11 -0.47 11/01/2000 7.15 7.81 5.06 Total Fund (Gross) -4.73 (42) 1 0.58 (23) 1 0.58 (23) 1 9.50 (4) r 9.39 (6) Total Fund Policy -4.63 (33) 0.57 (23) 0.57 (23) 8.83 (10) 9.58 (3) All Public Plans -Total Fund Median -5.02 -0.47 -0.47 7.15 7.81 Total Fund (New Mgrs) (Gross) -4.73 (42) 0.58 (23) 0.58 (23) 9.50 (4) 9.39 (6) Total Fund Policy -4.63 (33) 0.57 (23) 0.57 (23) 8.83 (10) 9.58 (3) All Public Plans -Total Fund Median -5.02 -0.47 -0.47 7.15 7.81 Total Equity -7.95 r -1.52 -1.52 ' 11.86 11.16 111F- Total Equity Policy -7.93 -2.28 -2.28 11.07 11.25 Total Domestic Equity -7.26 (65) -0.59 (62) -0.59 (62) 12.51 (59) 11.97 (78) Total Domestic Equity Policy -7.25 (65) -0.49 (60) -0.49 (60) 12.53 (59) 13.28 (60) IM U.S. Large Cap Core Equity (SA +CF) Median -6.63 -0.02 -0.02 12.95 13.65 Total International Equity -10.23 (49) -4.36 (23) -4.36 (23) 10.32 (8) 8.85 (6) MSCI EAFE Index -10.19 (48) -8.27 (48) -8.27 (48) 6.08 (48) 4.45 (49) IM International Large Cap Value Equity (SA +CF) Median -10.52 -8.59 -8.59 5.91 4.42 Total Fixed Income -0.28 1.19 1.19 1.27 2.94 Total Fixed Policy 1.08 2.95 2.95 1.64 2.69 Total Domestic Fixed Income 0.69 (1) 2.31 (24) 2.31 (24) 1.19 (100) 2.80 (100) Total Domestic Fixed Policy 1.08 (1) 2.95 (19) 2.95 (19) 1.64 (100) 2.69 (100) IM U.S. Large Cap Core Equity (SA +CF) Median -6.63 -0.02 -0.02 12.95 13.65 Total Global Fixed Income -6.08 (100) -7.63 (90) -7.63 (90) 0.56 (36) N/A Total Global Fixed Income Policy 1.71 (1) -3.83 (52) -3.83 (52) -2.85 (85) N/A IM Global Fixed Income (MF) Median -0.35 -3.75 -3.75 -0.53 1.26 Total Real Estate 3.52 (N /A) 14.27 (N /A) 14.27 (N /A) 14.71 (N /A) 14.55 (N /A) NCREIF Fund Index -ODCE (VVV) 3.68 (N /A) 14.92 (N /A) 14.92 (N /A) 13.45 (N /A) 14.02 (N /A) IM U.S. Open End Private Real Estate (SA +CF) Median N/A N/A N/A N/A N/A Returns for periods greater than one year are annualized. Returns are expressed as percentages. 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 18 5.11 (65) 11/01/2000 4.86 (82) 5.32 4.43 (50) 10/01/2007 5.38 (9) 4.42 5.76 (25) 11/01/2000 4.86 (82) 5.32 5.00 (23) 10/01/2007 5.38 (9) 4.42 5.53 'qj 01/01/2001 4.22 5.50 (40) 11/01/2000 4.05 (92) 5.14 5.60 (65) 11/01/2000 3.66 (99) 6.13 5.11 11/01/2000 5.08 5.06 (53) 11/01/2000 5.08 (53) 5.14 3.43 (19) 12/01/2011 -1.16 (91) 1.28 4.60 (N /A) 10/01/2007 4.10 (N /A) N/A TFir ( BOGDAHN `� GROUP Comparative Performance Trailing Returns Total Fund As of September 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global (Voyageur) -10.23 (49) -4.36 (23) -4.36 (23) 10.32 (8) 8.85 (6) 1.83 (20) 11/01/2007 MSCI EAFE Index -10.19 (48) -8.27 (48) -8.27 (48) 6.08 (48) 4.45 (49) -1.33 (71) IM International Large Cap Value Equity (SA +CF) Median -10.52 -8.59 -8.59 5.91 4.42 -0.67 Vanguard Total Stock Market (VITSX) -7.26 (35) -0.59 (33) -0.59 (33) N/A N/A 11.63 (35) 03/01/2013 Vanguard Total Stock Market Index Hybrid -7.26 (35) -0.55 (32) -0.55 (32) 12.51 (42) 13.32 (20) 11.67 (34) IM U.S. Multi -Cap Core Equity (MF) Median -8.11 -1.83 -1.83 12.27 11.94 10.58 Galliard Core Fixed Income 1.04 (36) 3.04 (23) 3.04 (23) 1.83 (41) 3.08 (35) 4.35 (75) 10/01/2007 Barclays Intermediate Aggregate Index 1.08 (30) 2.95 (28) 2.95 (28) 1.64 (57) 2.69 (61) 4.32 (76) IM U.S. Intermediate Duration (SA +CF) Median 0.93 2.65 2.65 1.70 2.85 4.60 Vanguard Short Term Bond Index (VSCSX) 0.59 (26) N/A N/A N/A N/A 1.42 (15) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index 0.58 (27) 1.98 (11) 1.98 (11) 1.97 (6) 2.79 (23) 1.61 (7) IM U.S. Intermediate Investment Grade (MF) Median 0.25 1.21 1.21 0.89 1.92 0.94 Galliard TIPS -0.60 -0.38 -0.38 -1.18 1.77 3.45 10/01/2007 Barclays U.S. TIPS 1 -10 Year -0.86 -0.82 -0.82 -1.39 1.79 3.50 Templeton Global Bond Fund (FBNRX) -6.08 (100) -7.63 (90) -7.63 (90) 0.56 (36) N/A 3.44 (19) 12/01/2011 Citigroup World Government Bond Index 1.71 (1) -3.83 (52) -3.83 (52) -2.85 (85) -0.19 (82) -1.16 (91) IM Global Fixed Income (MF) Median -0.35 -3.75 -3.75 -0.53 1.26 1.28 American Core Realty Fund 3.33 (N /A) 13.98 (N /A) 13.98 (N /A) 12.91 (N /A) 13.27 (N /A) 3.87 (N /A) 10/01/2007 American Core Realty Policy 3.68 (N /A) 14.92 (N /A) 14.92 (N /A) 13.45 (N /A) 14.02 (N /A) 6.64 (N /A) IM U.S. Open End Private Real Estate (SA +CF) Median N/A N/A N/A N/A N/A N/A Intercontinental 3.67 (N /A) 13.96 (N /A) 13.96 (N /A) 15.41 (N /A) 15.05 (N /A) 15.05 (N /A) 10/01/2010 NCREIF Fund Index -ODCE 3.68 (N /A) 14.92 (N /A) 14.92 (N /A) 13.45 (N /A) 14.02 (N /A) 14.02 (N /A) IM U.S. Open End Private Real Estate (SA +CF) Median N/A N/A N/A N/A N/A N/A 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 Crescent Direct Lending Fund QTR 0.00 1 YR 1.48 Comparative Performance - IRR Inception 1.48 As of September 30, 2015 Inception Date 10/14/2014 PSN THIS Q-'O* BOGDAHN 20 GROUP Comparative Performance Fiscal Year Returns Total Fund As of September 30, 2015 Comparative Performance Fiscal Year Returns FYTD Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Oct -2008 To Sep -2009 Oct -2007 To Sep -2008 Oct -2006 To Sep -2007 Oct -2005 To Sep -2006 Total Fund (Net) 0.28 (27) 11.85 (14) 15.72 (7) 18.95 (28) -1.17 (81) 10.67 (33) 0.70 (64) -16.84 (92) 13.03 (73) 7.89 (62) Total Fund Policy 0.57 (23) 11.38 (21) 15.06 (13) 19.59 (19) 2.53 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) 9.55 (28) All Public Plans -Total Fund Median -0.47 (28) 10.12 12.50 17.86 0.32 9.98 1.69 -13.41 14.31 8.52 Total Fund (New Mgrs) (Net) 0.28 (27) 11.85 (14) 15.72 (7) 18.95 (28) -1.17 (81) 10.66 (33) 0.68 (65) -16.82 (92) N/A N/A Total Fund Policy 0.57 (23) 11.38 (21) 15.06 (13) 19.59 (19) 2.53 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) 9.55 (28) All Public Plans -Total Fund Median -0.47 N/A 10.12 12.50 17.86 0.32 9.98 1.69 15.06 -13.41 14.31 8.52 Total Fund (Gross) 0.58 (23) 12.21 (9) 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) 1.43 (53) -16.48 (90) 13.92 (57) 8.62 (48) Total Fund Policy 0.57 (23) 11.38 (21) 15.06 (13) 19.59 (19) 2.53 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) 9.55 (28) All Public Plans -Total Fund Median -0.47 10.12 12.50 17.86 0.32 9.98 1.69 -13.41 14.31 8.52 Total Fund (New Mgrs) (Gross) 0.58 (23) 12.21 (9) 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) 1.39 (54) -16.46 (90) N/A N/A Total Fund Policy 0.57 (23) 11.38 (21) 15.06 (13) 19.59 (19) 2.53 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) 9.55 (28) All Public Plans -Total Fund Median -0.47 10.12 12.50 17.86 0.32 9.98 1.69 -13.41 14.31 8.52 Total Equity = -1.52 � 15.46 'M 23.09W 27.08 IW -4.6� 13.61 W -1.09 �-25.61-v 18.52 * 10.83 W Total Equity Policy -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 12.51 Total Domestic Equity -0.59 (62) 17.58 (70) 21.85 (34) 27.76 (62) -3.30 (90) 14.19 (8) -4.29 (38) -21.66 (64) 17.58 (43) 9.29 (69) Total Domestic Equity Policy -0.49 (60) 17.76 (68) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (31) -6.91 (64) -21.98 (69) 16.44 (60) 10.79 (49) IM U.S. Large Cap Core Equity (SA +CF) Median -0.02 19.26 20.70 29.77 1.15 9.50 -5.77 -20.42 16.98 10.76 Total International Equity -4.36 (23) 10.08 (10) 27.54 (16) 24.74 (3) -8.75 (54) 11.69 (15) 11.87 (21) -39.55 (100) 23.63 (55) 19.84 (67) MSCI EAFE Index -8.27 (48) 4.70 (63) 24.29 (41) 14.33 (54) -8.94 (56) 3.71 (67) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) IM International Large Cap Value Equity (SA +CF) Median -8.59 5.72 22.78 15.09 -8.41 5.04 6.28 -27.34 23.89 20.96 Total Fixed Income 1.19 MTRI" -0.59 6.34 =7 9.27 10.53 0.64 4.96 3.27 Total Fixed Policy 2.95 -0.71 4.31 4.22 9.69 4.16 5.33 3.55 Total Domestic Fixed Income 2.31 (24) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (54) 10.53 (2) 0.64 (1) 4.96 (100) 3.27 (98) Total Domestic Fixed Policy 2.95 (19) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (15) 7.52 (78) 9.69 (2) 4.16 (1) 5.33 (99) 3.55 (98) IM U.S. Large Cap Core Equity (SA +CF) Median -0.02 19.26 20.70 29.77 1.15 9.50 -5.77 -20.42 16.98 10.76 Total Global Fixed Income -7.63 (90) 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 -3.83 (52) -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 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Total Real Estate 14.27 (N /A) 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 14.92 (N /A) 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 N/A 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 u�T HOGLAl 11 `� 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 Index 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 September 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 3.17 (55) 19.15 (37) 19.27 (65) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) -20.88 (54) 19.35 (57) 6.04 (58) 3.61 18.00 20.35 27.57 1.36 11.30 -3.07 -20.31 20.19 6.80 -4.36 (23) 10.08 (10) 27.54 (16) 24.74 (3) -8.75 (54) 11.69 (15) 11.87 (21) N/A N/A N/A -8.27 (48) 4.70 (63) 24.29 (41) 14.33 (54) -8.94 (56) 3.71 (67) 3.80 (66) -30.13 (71) 25.38 (40) 19.65 (69) -8.59 5.72 22.78 15.09 -8.41 5.04 6.28 -27.34 23.89 20.96 -0.59 (33) 17.77 (27) N/A N/A N/A N/A N/A N/A N/A N/A -0.55 (32) 17.77 (27) 21.60 (63) 30.28 (18) 0.71 (20) 11.16 (30) -6.03 (57) -21.19 (31) 16.98 (46) 10.38 (28) -1.83 15.83 23.16 26.44 -1.95 9.62 -5.45 -22.88 16.64 8.94 3.04 (23) 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 2.95 (28) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (23) 7.52 (77) 9.69 (81) 4.16 (35) 5.33 (69) 3.84 (61) 2.65 2.88 -0.26 5.59 3.60 8.27 11.52 3.22 5.49 3.92 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A N/A -0.82 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 1.98 (11) 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) 1.21 1.71 -0.47 5.13 1.99 7.53 10.58 -0.22 4.27 3.13 -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A N/A -3.83 (52) -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) -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 13.98 (N /A) 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 14.92 (N /A) 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 N/A 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 13.96 (N /A) 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A N/A 14.92 (N /A) 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) N/A 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 5.00 v K 2.00 • • 00 -1.00 - -4.00 - -7.00 - 10.00 0 • O ■ QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio -4.73 (42) 0.58 (23) 0.58 (23) 6.24 (10) 9.50 (4) 11.99 (3) 9.39 (6) • Total Fund Policy -4.63 (33) 0.57 (23) 0.57 (23) 5.84 (16) 8.83 (10) 11.42 (9) 9.58 (3) Median -5.02 -0.47 -0.47 4.53 7.15 9.66 7.81 Comparative Performance 28.00 24.00 20.00 16.00 1200 . v 8.00 K 4.00 0.00 -4.00 -8.00 -12.00 Performance Review Total Fund Portfolio As of September 30. 2015 M • O O Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Total Fund Portfolio 0.58 (23) 12.21 (9) 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) • Total Fund Policy 0.57 (23) 11.38 (21) 15.06 (13) 19.59 (19) 2.53 (12) 9.13 (73) Median -0.47 10.12 12.50 17.86 0.32 9.98 2.10 (23) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Total Fund Portfolio 0.58 (13) 2.32 (62) 2.58 (34) -1.02 (46) 3.24 (80) 2.10 (23) Total Fund Policy 0.39 (21) 2.32 (62) 2.66 (31) -0.64 (23) 3.90 (32) 1.69 (53) All Public Plans -Total Fund Median -0.09 2.44 2.25 -1.14 3.63 1.72 23 THE rQ_BOGDAHN .� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 24.0 e Over 18.0 - Performance 0 0 12.0 LL 6.0 LL 0.0 0 -6.0 -6.0 0.0 6.0 12.0 Total Fund Policy ( %) Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 10.01 9.24 O 8.47 «' 7.70 v Performance Review Total Fund Portfolio As of September 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 9.50 6.47 O Total Fund Portfolio 0.0 9.58 O Total Fund Policy 8.83 00 wy o 25.0 8 0o 9.58 e®eeo00 8 8.50 Median 7.15 6.09 OO Median 7.81 8.59 Historical Statistics - 3 Years Q ® O a 50.0 - Down Information Sharpe E 75.0 Market Market Alpha Ratio Ratio Under w Risk Capture Capture Performance Total Fund Portfolio 1.08 107.80 109.06 0.12 0.61 100.0 1.06 2.79 Total Fund Policy 0.00 100.00 1 18.0 24.0 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 5 -25 25- Median Median -75 75 -95 Up Total Period Information Sharpe Downside Error Market Market Count Count Count Count N 6.93 6.16 5.94 6.03 6.12 6.21 6.30 6.39 6.48 6.57 Risk (Standard Deviation %) Return Standard Deviation O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 10.44 9.86 O 9.28 ' 8.70 v K 8.12 7.54 - 8.1 8.4 15 (75 %) 3 (15 %) 2 (10 %) 0 (0 %) 14 (70 %) 6 (30 %) 0 (0 %) 0 (0 %) 8.7 9.0 9.3 Risk (Standard Deviation %) Return N 9.6 Standard Deviation 9.9 • Total Fund Portfolio 9.50 6.47 O Total Fund Portfolio 9.39 9.58 O Total Fund Policy 8.83 6.02 O Total Fund Policy 9.58 8.50 Median 7.15 6.09 Median 7.81 8.59 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.08 107.80 109.06 0.12 0.61 1.44 1.06 2.79 Total Fund Policy 0.00 100.00 100.00 0.00 1.00 2.70 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.77 105.43 123.67 -1.16 -0.05 0.99 1.11 5.78 Total Fund Policy 0.00 100.00 100.00 1.00 4.79 24 PSN THIS Q BOGDAHN � GROUP Performance Review VG Total Stock Mkt (VITSX) As of September 30. 2015 Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 25.00 44.00 20.00 36.00 15.00 O 28.00 O 10.00 00 20.00 5.00 0 ■ 12.00 .00 4.00 -5.00 -4.00 -10.00 -15.00 I -12.00 -20.00 1 1 J QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) -7.26 (35) -0.59 (33) -0.59 (33) 8.20 (29) N/A N/A N/A • VG Total Stock Mkt Hybrid -7.26 (35) -0.55 (32) -0.55 (32) 8.22 (28) 12.51 (42) 16.71 (31) 13.32 (20) Median -8.11 -1.83 -1.83 6.65 12.27 15.90 11.94 Comparative Performance -20.00 ` J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG Total Stock Mkt (VITSX) -0.59 (33) 17.77 (27) N/A N/A N/A N/A O VG Total Stock Mkt Hybrid -0.55 (32) 17.77 (27) ?1.60 (63) 30.28 (18) 0.71 (20) 11.16 (30) Median -1.83 15.83 ?3.16 ?6.44 -1.95 9.62 25 PSN THIS Q BOGDAHN � GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 VG Total Stock Mkt (VITSX) 0.09 (40) 1.81 (58) 5.20 (38) -0.01 (31) 4.86 (35) 2.04 (49) VG Total Stock Mkt Hybrid 0.08 (40) 1.81 (58) 5.24 (35) -0.02 (31) 4.87 (34) 2.04 (49) IM U.S. Multi -Cap Core Equity (MF) Median -0.15 2.19 4.61 -0.81 4.53 2.01 25 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 20.00 15.00 10.00 - 5.00 0.00 c v K -5.00 -10.00 -15.00 -20.00 -25.00 1 O 1 O O 9 I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • RBC Global (Voyageur) -10.23 (49) -4.36 (23) -4.36 (23) 2.61 (9) 10.32 (8) 13.76 (4) 8.85 (6) • MSCI EAFE Index -10.19 (48) -8.27 (48) -8.27 (48) -1.99 (56) 6.08 (48) 8.09 (46) 4.45 (49) Median -10.52 -8.59 -8.59 -1.84 5.91 7.86 4.42 Comparative Performance 44.00 36.00 28.00 20.00 12.00 c v K 4.00 -4.00 -12.00 -20.00 Performance Review RBC Global (Voyageur) As of September 30. 2015 -28.00 1 Qtr 1 Qtr J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • RBC Global (Voyageur) -4.36 (23) 10.08 (10) 27.54 (16) 24.74 (3) -8.75 (54) 11.69 (15) • MSCI EAFE Index -8.27 (48) 4.70 (63) 24.29 (41) 14.33 (54) -8.94 (56) 3.71 (67) Median -8.59 5.72 22.78 15.09 -8.41 5.04 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 RBC Global (Voyageur) 1.78 (43) 6.14 (15) -1.39 (15) -7.80 (93) 2.57 (81) 4.15 (6) MSCI EAFE Index 0.84 (66) 5.00 (42) -3.53 (49) -5.83 (62) 4.34 (45) 0.77 (62) IM International Large Cap Value Equity (SA +CF) Median 1.35 4.54 -3.83 -5.57 4.15 1.16 o PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 45.0 Over Performance 'w 30.0 � a 0 o PDO 15.0 ctglp A 00 a o u 0 0.0 U m -15.0 -15.0 0.0 15.0 MSCI EAFE Index ( %) eOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 12.00 10.00 8.00 v 6.00 4.00 11.02 11.31 11.60 11.89 12.18 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of September 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 10.32 12.76 O RBC Global (Voyageur) 8.85 y 0.0 O MSCI EAFE Index 6.08 0 0 0 00 0 0 0 0 0 0 0 Median 5.91 11.59 0 0 0 4.42 14.75 Historical Statistics - 3 Years 0 O Tracking Up Down w 25.0 O Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture 0 00 0 0 0 RBC Global (Voyageur) 4.92 50.0 83.49 4.50 0.81 0.88 0.93 00 MSCI EAFE Index 0.00 0 0 EL O 0 0 0 0 0 Historical Statistics - 5 Years e 75.0 O O O 0 Up Down Information Sharpe Downside Error O Market Alpha Ratio Ratio Beta Risk K Capture Capture Under 100.0 � 1 Performance 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 30.0 45.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count W 12.47 12.76 Standard Deviation O RBC Global (Voyageur) 20 O MSCI EAFE Index 20 Peer Group Scatterg ram - 5 Years 10.00 8.00 6.00 v 4.00 2.00 13.05 13.65 14.30 14.95 15.60 16.25 16.90 17.55 Risk (Standard Deviation %) 17 (85 %) 2 (10 %) 1 (5 %) 0 (0 %) 0 (0 %) 7 (35 %) 11 (55 %) 2 (10 %) E Return Standard Deviation 18.20 O RBC Global (Voyageur) 10.32 12.76 O RBC Global (Voyageur) 8.85 17.28 O MSCI EAFE Index 6.08 11.57 O MSCI EAFE Index 4.45 14.45 Median 5.91 11.59 Median 4.42 14.75 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.92 108.65 83.49 4.50 0.81 0.88 0.93 6.65 MSCI EAFE Index 0.00 100.00 100.00 1.00 7.27 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.45 111.09 90.79 4.37 0.79 0.61 1.00 10.07 MSCI EAFE Index 100.00 100.00 0.00 , 1.00 10.26 27 THE (� BOGDAHN GROUP. Peer Group Analysis - IM Global Fixed Income (MF) 8.00 5.00 2.00 -1.00 E v K -4.00 -7.00 -10.00 -13.00 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR e Templeton Global (FBNRX) -6.08 (100) -7.63 (90) -7.63 (90) -0.89 (63) 0.56 (36) N/A N/A O Citigroup World Gvt Bond 1.71 (1) -3.83 (52) -3.83 (52) -1.97 (79) -2.85 (85) -1.35 (93) -0.19 (82) Median -0.35 -3.75 -3.75 -0.28 -0.53 1.24 1.26 Comparative Performance 20.00 16.00 12.00 8.00 4.00 c v K 0.00 -4.00 -8.00 -12.00 ■ Performance Review Templeton Global (FBNRX) As of September 30. 2015 -16.00 l J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Templeton Global (FBNRX) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A • Citigroup World Gvt Bond -3.83 (52) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) Median -3.75 3.53 -1.52 7.19 1.61 7.82 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR e Templeton Global (FBNRX) -6.08 (100) -7.63 (90) -7.63 (90) -0.89 (63) 0.56 (36) N/A N/A O Citigroup World Gvt Bond 1.71 (1) -3.83 (52) -3.83 (52) -1.97 (79) -2.85 (85) -1.35 (93) -0.19 (82) Median -0.35 -3.75 -3.75 -0.28 -0.53 1.24 1.26 Comparative Performance 20.00 16.00 12.00 8.00 4.00 c v K 0.00 -4.00 -8.00 -12.00 ■ Performance Review Templeton Global (FBNRX) As of September 30. 2015 -16.00 l J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Templeton Global (FBNRX) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A • Citigroup World Gvt Bond -3.83 (52) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) Median -3.75 3.53 -1.52 7.19 1.61 7.82 Fs� Tum 28 /( BOGDAHN GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Templeton Global (FBNRX) -0.24 (10) 0.25 (45) -1.67 (76) 0.06 (15) 2.68 (40) 0.75 (95) Citigroup World Gvt Bond -1.55 (41) -2.51 (100) -1.49 (71) -3.78 (92) 2.27 (53) 2.66 (41) IM Global Fixed Income (MF) Median -1.91 0.08 -1.04 -1.64 2.39 2.42 Fs� Tum 28 /( BOGDAHN GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over x Performance Z 8.0 m 4.0 00 a o x c7 0.0 c 0 w -4.0 E v � -8.0 -8.0 -4.0 0.0 4.0 Citigroup World Gvt Bond ( %) eOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.00 is 0.00 E -2.00 O -4.00 3.80 4.00 4.20 4.40 4.60 4.80 Risk (Standard Deviation %) Return Performance Review Templeton Global (FBNRX) As of September 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years 0.56 5.07 y 0.0 N/A O O K -2.85 4.23 O w 25.0 4.91 Median O 4.09 Median O U 50.0 O 4.93 Historical Statistics - 3 Years EL" O 75.0 v O 0 0 0 0 0 0 0 0 0 0 O O Information Sharpe 00 00 Under 100.0 Error Market Market Alpha Performance 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 8.0 12.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count O 5.00 5.20 Standard Deviation 5.40 • Templeton Global (FBNRX) 4 • Citigroup World Gvt Bond 20 Peer Group Scatterg ram - 5 Years 1.50 1.00 0.50 0.00 O -0.50 4.91 3 (75 %) 1 (25 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 1 (5 %) 17 (85 %) 4.92 4.93 Risk (Standard Deviation %) Return Standard Deviation 4.94 • Templeton Global (FBNRX) 0.56 5.07 O Templeton Global (FBNRX) N/A N/A O Citigroup World Gvt Bond -2.85 4.23 O Citigroup World Gvt Bond -0.19 4.91 Median -0.53 4.09 Median 1.26 4.93 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global (FBNRX) 5.71 29.48 8.79 1.57 0.61 0.13 0.31 3.77 Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 -0.67 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 -0.03 1.00 3.77 ORA PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 6.08 5.30 4.52 3.74 2.96 00 00 c v 2.18 K 1.40 0.62 -0.16 -0.94 -1.72 0 O O am r Comparative Performance 17.00 14.00 11.00 8.00 c v 5.00 K 2.00 1.00 -4.00 Performance Review Galliard Core Fixed Inc As of September 30. 2015 ■ i� -7.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Galliard Core Fixed Inc 3.04 (23) 3.15 (38) -0.64 (75) 5.82 (47) 4.16 (27) 9.63 (18) • Barclays Int Agg Index 2.95 (28) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (23) 7.52 (77) Median 2.65 2.88 -0.26 5.59 3.60 8.27 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 1.04 (36) 3.04 (23) 3.04 (23) 3.09 (27) 1.83 (41) 2.81 (42) 3.08 (35) • Barclays Int Agg Index 1.08 (30) 2.95 (28) 2.95 (28) 2.84 (41) 1.64 (57) 2.31 (75) 2.69 (61) Median 0.93 2.65 2.65 2.70 1.70 2.69 2.85 Comparative Performance 17.00 14.00 11.00 8.00 c v 5.00 K 2.00 1.00 -4.00 Performance Review Galliard Core Fixed Inc As of September 30. 2015 ■ i� -7.00 J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Galliard Core Fixed Inc 3.04 (23) 3.15 (38) -0.64 (75) 5.82 (47) 4.16 (27) 9.63 (18) • Barclays Int Agg Index 2.95 (28) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (23) 7.52 (77) Median 2.65 2.88 -0.26 5.59 3.60 8.27 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Galliard Core Fixed Inc -0.64 (58) 1.51 (42) 1.10 (23) 0.09 (27) 1.65 (24) 1.43 (31) Barclays Int Agg Index -0.67 (62) 1.32 (79) 1.20 (18) 0.03 (39) 1.62 (28) 1.20 (52) IM U.S. Intermediate Duration (SA +CF) Median -0.61 1.47 0.93 0.01 1.40 1.22 W PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 15.0 Over Performance c w 10.0 LL • - v - 0 U 5.0 v A A C7 0.0 1 1 0.0 5.0 10.0 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 1.89 1.82 1.75 v 1.68 1.61 C Performance Review Galliard Core Fixed Inc As of September 30. 2015 1 1 1 1.83 1.86 1.89 1.92 1.95 1.98 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.20 3.00 2.80 0 2.60 1 2.01 1.92 1.95 1.98 6 (30 %) 13 (65 %) 0 (0 %) 1 (5 %) 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) 1 1 2.01 2.04 2.07 Risk (Standard Deviation %) Return E9 2.10 2.13 Standard Deviation 2.16 • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 1.97 • Galliard Core Fixed Inc 3.08 / y 0.0 1.64 1.88 • Barclays Int Agg Index 2.69 1.97 Median v 25.0 Median (5 OO 00 2.04 Historical Statistics - 3 Years 00 000000000 Down Information Sharpe 50.0 Downside 00 Market Market Alpha Ratio Ratio Beta Risk Capture Capture 0 Galliard Core Fixed Inc 0.34 105.82 75.0 8 000000 0000 1.04 000000 Barclays Int Agg Index 0.00 00 100.00 v 1.00 Historical Statistics - 5 Years K Tracking Up Down Information Sharpe Downside 100.0 Market Market Alpha Ratio Ratio Beta Risk Under Capture Capture Performance 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 15.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 1 1 1 1.83 1.86 1.89 1.92 1.95 1.98 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.20 3.00 2.80 0 2.60 1 2.01 1.92 1.95 1.98 6 (30 %) 13 (65 %) 0 (0 %) 1 (5 %) 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) 1 1 2.01 2.04 2.07 Risk (Standard Deviation %) Return E9 2.10 2.13 Standard Deviation 2.16 • Galliard Core Fixed Inc 1.83 1.97 • Galliard Core Fixed Inc 3.08 2.11 • Barclays Int Agg Index 1.64 1.88 • Barclays Int Agg Index 2.69 1.97 Median 1.70 1.84 Median 2.85 2.04 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.34 105.82 101.62 0.11 0.54 0.81 1.04 1.30 Barclays Int Agg Index 0.00 100.00 100.00 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 0.47 107.04 94.89 0.35 0.83 1.42 1.01 1.13 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) 4.40 3.53 2.66 1.79 0.92 E 0.05 K -0.82 -1.69 -2.56 -3.43 -4.30 17.00 14.00 11.00 8.00 5.00 00 E r 2.00 ■ K -1.00 ■ -4.00 -7.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard TIPS -0.60 (8) -0.38 (12) -0.38 (12) 0.10 (61) -1.18 (12) 0.57 (79) 1.77 (89) • Barclays US TIPS 1 -10 Yr -0.86 (22) -0.82 (58) -0.82 (58) -0.11 (80) -1.39 (31) 0.49 (87) 1.79 (84) Median -1.10 -0.79 -0.79 0.35 -1.51 0.79 2.54 Comparative Performance -10.00 Performance Review Galliard TIPS As of September 30. 2015 is -13.00 L- 1 Qtr 1 Qtr J Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Galliard TIPS -0.38 (12) 0.59 (86) -3.71 (10) 6.01 (98) 6.73 (96) 7.28 (94) • Barclays US TIPS 1 -10 Yr -0.82 (58) 0.61 (80) -3.90 (18) 6.32 (93) 7.19 (86) 7.40 (93) Median -0.79 1.54 -5.73 9.02 9.56 9.36 32 THIS (7 BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Galliard TIPS -0.44 (26) 1.90 (1) -1.21 (94) -1.94 (24) 2.90 (85) 1.17 (77) Barclays US TIPS 1 -10 Yr -0.15 (16) 1.20 (91) -1.00 (87) -1.99 (35) 2.94 (83) 1.03 (88) IM U.S. TIPS (SA +CF) Median -1.07 1.46 -0.15 -2.03 3.75 1.94 32 THIS (7 BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years -1.18 12.0 4.18 • Galliard TIPS 1.77 Over 3.83 O Barclays US TIPS 1 -10 Yr -1.39 Performance 4.04 • Barclays US TIPS 1 -10 Yr 1.79 a_ ~ v A 4.0 -1.51 A 0.0 Median 2.54 5.16 Historical Statistics - 3 Years Under Performance -4.0 1 1 Tracking Up -4.0 0.0 4.0 8.0 12.0 Information Sharpe Barclays US TIPS 1 -10 Yr ( %) Error • Over Performance • Under Performance Alpha Ratio + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years -0.80 is -1.00 -1.20 O -1.40 O -1.60 1 1 1 3.80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 Risk (Standard Deviation %) Return Standard Deviation Performance Review Galliard TIPS As of September 30. 2015 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O K w 25.0 O = Q c 50.0 - `w a 75.0 - O pore 8 ®8a 88000800 ®00 100.0 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 2.86 2.60 2.34 «' 2.08 K 1.82 1.56 1 3.38 3.64 3.90 1 (5 %) 1 (5 %) 1 (5 %) 17 (85 %) 0 (0 %) 1 (5 %) 1 (5 %) 18 (90 %) 1 1 1 4.16 4.42 4.68 4.94 5.20 Risk (Standard Deviation %) Return Standard Deviation 5.46 • Galliard TIPS -1.18 4.18 • Galliard TIPS 1.77 3.83 O Barclays US TIPS 1 -10 Yr -1.39 4.04 • Barclays US TIPS 1 -10 Yr 1.79 3.81 Median -1.51 5.05 Median 2.54 5.16 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.00 99.21 95.44 0.26 0.22 -0.29 1.03 3.02 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 -0.37 1.00 3.01 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.05 97.86 97.16 -0.02 -0.01 0.46 1.00 2.49 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 33 PSN THIS Q BOGDAHN � GROUP Performance Review VG ST Bond Index (VSCSX) As of September 30. 2015 Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 5.00 17.00 4.16 14.00 3.32 • • 11.00 2.48 O O 8.00 1.64 E c r 0.80 r 5.00 v v -0.04 2.00 -0.88 -1.00 -1.72 -2.56 -3.40 Comparative Performance -4.00 -7.00 1 1 1 1 1 1 1 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.98 (11) 2.46 (27) 1.47 (15) 6.29 (30) 1.83 (58) 8.25 (38) Median 1.21 1.71 -0.47 5.13 1.99 7.53 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 0.59 (26) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 0.58 (27) 1.98 (11) 1.98 (11) 2.22 (11) 1.97 (6) 3.03 (19) 2.79 (23) Median 0.25 1.21 1.21 1.45 0.89 1.97 1.92 Comparative Performance -4.00 -7.00 1 1 1 1 1 1 1 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • VG ST Bond Index (VSCSX) N/A N/A N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.98 (11) 2.46 (27) 1.47 (15) 6.29 (30) 1.83 (58) 8.25 (38) Median 1.21 1.71 -0.47 5.13 1.99 7.53 34 THIS Q- BOGDAHN -'O* GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 VG ST Bond Index (VSCSX) -0.22 (37) 1.04 (55) N/A N/A N/A N/A Barclays US Corp 1 -5 Yr Index -0.21 (37) 1.24 (20) 0.36 (34) -0.09 (24) 0.97 (42) 0.82 (49) IM U.S. Intermediate Investment Grade (MF) Median -0.37 1.07 0.26 -0.25 0.92 0.80 34 THIS Q- BOGDAHN -'O* GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 18.00 16.00 32.00 - 26.00 - Oct -2013 Oct -2012 Oct -2011 20.00 - O 14.00 - O 14.00 Q K Q 8.00 - QTR FYTD 1 YR 2 YR 2.00 - -4.00 - C -10.00 - • American Core RE -16.00 12.91 (N /A) 12.57 (N /A) 13.27 (N /A) O 12.00 10.00 E K 8.00 - 6.00 - 4.00 - • • 2.00 - 0.00 0 0 O 0 38.00 32.00 - 26.00 - Oct -2013 Oct -2012 Oct -2011 20.00 - 14.00 - To K To To 8.00 - QTR FYTD 1 YR 2 YR 2.00 - -4.00 - Sep -2014 Sep -2013 Sep -2012 -10.00 - • American Core RE -16.00 12.91 (N /A) 12.57 (N /A) 13.27 (N /A) Performance Review American Core RE As of September 30. 2015 35 PSN THIS Q BOGDAHN � GROUP Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • American Core RE 3.33 (N /A) 13.98 (N /A) 13.98 (N /A) 13.24 (N /A) 12.91 (N /A) 12.57 (N /A) 13.27 (N /A) A American Core RE 13.98 (N/A) 12.49 (67) 12.27 (71) 11.56 (70) 16.11 (76) 2.71 (77) • American Core RE Policy 3.68 (N /A) 14.92 (N /A) 14.92 (N /A) 13.65 (N /A) 13.45 (N /A) 12.98 (N /A) 14.02 (N /A) O American Core RE Policy 14.92 (N /A) 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 5.84 (53) Median N/A N/A N/A N/A N/A N/A N/A Median N/A 12.90 13.18 12.90 16.62 6.39 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 American Core RE 3.75 (48) 4.46 (25) 1.80 (94) 3.36 (50) 2.80 (65) 3.20 (39) American Core RE Policy 3.82 (44) 3.39 (57) 3.26 (55) 3.24 (57) 2.93 (60) 2.52 (62) IM U.S. Open End Private Real Estate (SA +CF) Median 3.72 3.55 3.50 3.35 3.15 2.81 35 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 20.0 Over Performance w 10.0 v �j 0.0 U � w -10.0 E a 20.0 -20.0 -10.0 0.0 10.0 American Core RE Policy (% ) • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 13.60 13.40 O 13.20 v 13.00 12.80 0.96 1.04 1.12 1.20 1.28 Risk (Standard Deviation %) Return Performance Review American Core RE As of September 30. 2015 • American Core RE 3 Yr Rolling Percentile Ranking - 5 Years 1.33 • American Core RE 13.27 y 0.0 0 00 O O 1.31 O American Core RE Policy 13.45 0.96 O • American Core RE Policy 14.02 1.35 . w 25.0 N/A Median N/A ° O N/A Historical Statistics - 3 Years 500 - O O O ° 75.0- ° 0 6 O O e e 8 Q Information Sharpe 0° r 8 Error V Market Alpha Ratio Ratio Beta Risk Under 100.0 Capture Capture Performance 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 20.0 Total Period 5 -25 25- Median Median -75 75 -95 American Core RE Policy 0.00 Count Count Count Count 13.25 American Core RE 19 0 (0 %) 3 (16 %) 8 (42 %) 8 (42 %) American Core RE Policy 19 6 (32 %) 1 (5 %) 11 (58 %) 1 (5 %) Peer Group Scatterg ram - 5 Years Up Down Information Sharpe 14.25 Downside Error Market Market 14.00 Ratio Ratio O Risk 13.75 Capture Capture «' 13.50 v O 13.25 - O 13.00 1.36 1.44 1.30 1.31 1.32 1.33 1.34 1.35 1.36 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • American Core RE 12.91 1.33 • American Core RE 13.27 1.31 O American Core RE Policy 13.45 0.96 • American Core RE Policy 14.02 1.35 Median N/A N/A Median N/A N/A Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.21 96.24 N/A 3.84 -0.40 9.23 0.67 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 13.25 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 1.16 94.88 N/A 4.69 -0.59 9.67 0.60 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 1.00 0.00 PSN THIS Q BOGDAHN � GROUP Performance Review Intercontinental As of September 30. 2015 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 18.00 38.00 16.00 32.00 C' C' C' O 14.00 Q Q O O O 26.00 C' O 12.00 20.00 10.00 14.00 0 0 • r r v v 8.00 8.00 6.00 - 2.00 4.00 - • -4.00 2.00 - -10.00 0.00 -16.00 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Intercontinental 3.67 (N /A) 13.96 (N /A) 13.96 (N /A) 14.03 (N /A) 15.41 (N /A) 14.90 (N /A) 15.05 (N /A) • Intercontinental 13.96 (N /A) 14.10 (37) 18.21 (10) 13.38 (43) 15.68 (77) N/A • NCREIF Fund Index 3.68 (N /A) 14.92 (N /A) 14.92 (N /A) 13.65 (N /A) 13.45 (N /A) 12.98 (N /A) 14.02 (N /A) • NCREIF Fund Index 14.92 (N /A) 12.40 (71) 13.04 (54) 11.61 (67) 18.27 (40) 6.97 (43) Median N/A N/A N/A N/A N/A N/A N/A Median N/A 12.90 13.18 12.90 16.62 6.39 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Intercontinental 3.37 (63) 1.18 (100) 5.10 (14) 3.79 (26) 2.42 (90) 1.89 (81) NCREIF Fund Index 3.82 (44) 3.39 (57) 3.26 (55) 3.24 (57) 2.93 (60) 2.52 (62) IM U.S. Open End Private Real Estate (SA +CF) Median 3.72 3.55 3.50 3.35 3.15 2.81 37 THIS Q- BOGDAHN -'O* GROUP 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over Performance °- 16.0 a CPO O c v r 14.0 0 U c 12.0 10.0 1 10.0 12.0 14.0 NCREIF Fund Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 15.87 15.18 14.49 «' 13.80 13.11 O 12.42 1 1 1 1 0.40 0.80 1.20 1.60 2.00 Risk (Standard Deviation %) Return Performance Review Intercontinental As of September 30. 2015 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 2.84 • Intercontinental 15.05 y 0.0 2.35 • NCREIF Fund Index 13.45 0.96 A w 25.0 _ 14.02 0 0 0 0 0 0 N/A 0 0 0 00 N/A N/A 50.0 -� 0 00 O e O 0 0 0 0 0 0 0 p 75.0- Sharpe Downside Error Market K Alpha Ratio Ratio Beta Under 100.0 Capture Capture Performance 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15 1 0.59 5.14 -0.15 0.00 NCREIF Fund Index 16.0 18.0 Total Period 5 -25 25- Median Median -75 75 -95 0.00 Historical Statistics - 5 Years Count Count Count Count lb Intercontinental 8 1 (13 %) 7 (88 %) 0 (0 %) 0 (0 %) • NCREIF Fund Index 19 0 (0 %) 8 (42 %) 11 (58 %) 0 (0 %) Market Peer Group Scatterg ram - 5 Years Alpha Ratio Ratio Beta Risk 15.48 Capture Capture 0 r.. 15.12 O 14.76 «' 14.40 14.04 O 13.68 1 1 1 1 2.40 2.80 3.20 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Intercontinental 15.41 2.84 • Intercontinental 15.05 2.35 • NCREIF Fund Index 13.45 0.96 O NCREIF Fund Index 14.02 1.35 Median N/A N/A Median N/A N/A Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.04 114.10 N/A 17.66 0.59 5.14 -0.15 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 2.60 107.13 N/A 12.76 0.37 6.06 0.16 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 38 PSN THIS Q BOGDAHN � GROUP Private Equity Fund Overview Crescent Direct Lending Fund As of September 30, 2015 Fund Information Type of Fund: Direct Vintage Year: 2014 Strategy Type: Other Management Fee: 1.35% of invested equity capital Size of Fund: - Preferred Return: 7.00% Inception: 09/05/2014 General Partner: CDL Levered General Partner, Ltd. Final Close: 9/5/2015 expected Number of Funds: Investment Strategy: High Current income while focusing on preservation of capital through investment primarily in senior secured loans of private U.S. lower- middle- market companies. The Fund will seek to $1,280,000.0 enhance returns on its investments through the use of leverage. Fund size is $250 million/ $500 million with leverage. Cash Flow Summary Cash Flow Analysis Capital Committed: $2,000,000 $1,600,000.0 Capital Invested: $1,175,840 Management Fees: Expenses: $32,810 $1,280,000.0 Interest: - Total Contributions: $1,175,840 $960,000.0 Remaining Capital Commitment: $1,091,082 Total Distributions: $268,623 $640,000.0 Market Value: $916,788 Inception Date: 10/14/2014 $320,000.0 Inception IRR: 1.5 TVPI: 1.0 $0.0 ($320,000.0) 10/14 1/15 4/15 Net Asset Value Distribution Contributions 7/15 10/15 �^ THk: 39 (i \ BOGDAHN GROUP. Benchmark Historical Hybrid Compositions Total Fund As of September 30, 2015 Total Fund Policy Total Equity Policy Allocation Mandate Weight ( %) Allocation Mandate Weight ( %) Jan -1976 Jan -1970 S &P 500 Index 65.00 S &P 500 Index 90.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 MSCI EAFE Index 5.00 Oct -2003 Oct -2003 S &P 500 Index 85.00 S &P 500 Index 60.00 MSCI EAFE Index 15.00 Barclays Aggregate Index 30.00 MSCI EAFE Index 10.00 S &P 500 Index 100.00 Sep -2006 S &P 500 Index 60.00 Oct -2009 Barclays Intermediate Aggregate Index 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 Oct -2009 Russell 3000 Index 50.00 Total Domestic Equity Policy Barclays Intermediate Aggregate Index 25.00 Allocation Mandate Weight ( %) MSCI EAFE Index 15.00 Jan -1926 Barclays U.S. Treasury: U.S. TIPS Index 5.00 S &P 500 Index 100.00 NCREIF Property Index 5.00 Oct -2009 Oct -2010 Russell 3000 Index 100.00 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 20.00 MSCI EAFE Index 15.00 Total Fixed Income Policy Barclays U.S. Treasury: U.S. TIPS Index 5.00 Allocation Mandate Weight ( %) NCREIF Fund Index -ODCE (VVv) 10.00 Nov -2000 Barclays Aggregate Index 100.00 Vanguard Total Stock Market Policy Sep -2006 Rarclays Intermediate Annrenate Index 100 00 Allocation Mandate Weight ( %) Jun -2003 American Realty Policy MSCI US Broad Market Index 100.00 Allocation Mandate Weight ( %) Feb -2013 Oct -2007 CRSP U.S. Total Market TR Index 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -ODCE (VVv) 100.00 THIS 40 BOGDAHN a'� GROUP Compliance Checklist Total Fund Winter Springs GE As of September 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 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 Winter Springs General Employees General Plan and Trust Fee Analysis As of September 30, 2015 Receipt & Disbursement 0.95 808,409 Total Fund 0.39 37,344,542 137,887 42 PSN THIS Q BOGDAHN � GROUP Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 17,625,211 7,050 0.04 % of Assets Total Domestic Equity 0.04 17,625,211 7,050 RBC Global (Voyageur) 0.95 5,167,176 49,088 0.95 % of Assets Total International Equity 0.95 5,167,176 49,088 Galliard Core Fixed Income 0.25 4,739,662 11,849 0.25 % of Assets Galliard TIPS 0.15 1,177,381 1,766 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,361,547 1,634 0.12 % of Assets Total Domestic Fixed Income 0.21 7,278,590 15,249 Templeton Global Bond Fund (FBNRX) 0.51 1,171,002 5,972 0.51 %of Assets Total Global Fixed Income 0.51 1,171,002 5,972 Crescent Direct Lending Fund 1.35 916,788 12,377 1.35 % of Assets Total Other Fixed Income 1.35 916,788 12,377 Intercontinental 1.10 2,436,960 26,807 1.10 % of Assets American Core Realty Fund 1.10 1,940,406 21,344 1.10 % of Assets Total Real Estate 1.10 4,377,366 48,151 Receipt & Disbursement 0.95 808,409 Total Fund 0.39 37,344,542 137,887 42 PSN THIS Q BOGDAHN � GROUP Disclosures Total Fund As of September 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: 43 BOGDAHN GROUP. Performance Measurement 863 - 904 -0856 Do n n a S@ bogda h ngrou p. com Direct Phone: E� 44 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. 45 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. This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. 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. 46 THE BOGDAHN GRoup .simplifying your investment and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Cleveland I Detroit Milwaukee I Pittsburgh I Tulsa