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2016 02 09 Regular 503 Quarterly Investment Performance Review
BOARD OF TRUSTEES AGENDA ITEM Informational Consent ITEM 503 Public Hearings Regular X February 9, 2016 Mgr. / Dept. Regular Meeting Authorization REQUEST: The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The First Quarter Investment Return Report, And To Enter Into Discussion. ATTACHMENT(S): Quarterly Investment Performance Review (48 Pages) WWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 4th Quarter 2015 THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 4th Quarter 2015 Market Environment THE {� BOGDAHN \ GROUP. ■ The 4th quarter of 2015 saw broad equity markets recover some of the losses experienced during the previous quarter. The majority of the 4th quarter's returns were generated during the month of October as markets reacted positively to news that several major central banks, notably Europe and China, would inject additional stimulus into their economies. However, returns in November began to lose momentum, and December's monthly returns were broadly negative as investors weighed the reality of a weaker - than - expected policy response from the European Central Bank (ECB) and ongoing weakness in energy and commodity prices. Although largely telegraphed, December saw the U.S. Federal Reserve (the Fed) raise the Federal Funds Rate by 25 basis points (bps) following positive news regarding employment, housing, and consumer confidence. While the rate increase was small and expected, it did signal the Fed's belief in the sustainability of U.S. economic growth. This increase also begins the process of "rate normalization" after seven years of the Fed's "zero interest rate policy" and foreshadows the prospect of additional rate increases in 2016. ■ Led by large capitalization issues, domestic equity market indices all posted positive results for the 4th quarter. For the calendar year, domestic large cap stock indices posted small, but positive gains, while domestic small- and mid - capitalization indices posted slightly negative results. In U.S. dollar (USD) terms, non -U.S. equity indices posted gains in the 4th quarter with broad developed market proxies continuing to outpace riskier emerging market composite indices. On a one -year basis, emerging market equity returns struggled mightily relative to their developed market counterparts due to ongoing concerns over the prospect of stagnant global economic growth. While international market returns lagged their domestic market counterparts during 2015, a large portion of the disparity can be attributed to the significant appreciation of the USD throughout the year. ■ U.S. fixed income indices tracked on the chart were all modestly negative for the 4th quarter. As expected, the Fed's decision to move short -term rates higher had a negative impact on bond returns during the quarter. In addition to the December interest rate increase, investor concerns over global deflationary pressures and low economic growth pushed Treasury Inflation Protected Securities (TIPS) and investment grade corporate bond returns into negative territory for the calendar year. 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 Quarter Performance 0.7% -0.6% -0.9% -0.6% -0.1% -0.6% 0.0% -2.0% 0.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts - 14.9% 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 -16.0% -12.0% The Market Environment Major Market Index Performance As of December 31, 2015 3.2% 4.7% 7.0% 6.3% 6.5% 3 6% 3. % 2.0% 4.0% 6.0% 8.0% -5.7% -0.8% 1.4% 0.5% 0.9% -2.4% -4.4% 0.5% 0.9% -1.4% 1.5% -0.7% 0.0% -8.0% -4.0% 0.0% 4.0% THE. Source: Investment Metrics 2 {� BOGDAHN \ GROUP. • Domestic equity index performance was positive across the style and capitalization spectrum during the 4th quarter. Outside of macroeconomic and geopolitical factors that impacted all equity performance, there were two notable trends affecting domestic equity results during the 4th quarter of 2015. First, large cap indices outperformed their small cap counterparts. Second, growth stock index returns meaningfully outpaced their value index counterparts at all levels of the capitalization spectrum. The dominance of large cap index performance for the quarter was influenced by their perceived safety and stability of their earnings growth. The dominance of growth indices for the quarter is largely attributable to the indices' lower weight to cyclical sectors heavily exposed to ongoing weakness in commodity prices and capital spending. ■ Performance for the 4th quarter echoed throughout calendar year 2015 as both large cap and growth indices proved to be the best performers over the trailing one -year period. In fact, only growth and core large cap issues managed positive returns for the year. All value benchmarks, as well as small- and mid -cap core and growth indices, posted negative results for the year. ■ From a valuation perspective, current Price /Earnings ratios (P /E) for value indices appear stretched relative to their long -term (20 -year) averages. The mid -cap value index appears most expensive at 111% of its long -term average. Despite strong performance in 2015, current P/E valuations for the growth indices fall between 85% and 90% of their historical long -term averages. 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 December 31, 2015 Quarter Performance - Russell Style Series 5.4% 6.3% 7.1 5.6% 6.5% 7.3% 3.1 3.6% 4.1% 2.9% 3.6% 4.3% 0.0% 2.0% 4.0% 6.0% 8.0% 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth -4.1% 0.5% 1% -3.8% 0.9% 5.7% -4.8% -2.4% _0.2% -7.5% -4.4% -1.4% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% THE. {� BOGDAHN \ GROUP. • Large cap sector performance was broadly positive for the 4th quarter as every sector within the Russell 1000 Index, with the exception of energy, posted positive results. Sector strength was notably broad with eight of the ten GICS sectors posting returns of at least 5.0% for the quarter. The materials sector was the strongest performer for the quarter, returning 9.0 %. Merger and acquisition activity between the sector's two largest constituents - Dow Chemical (DOW) and DuPont (DD) - provided a substantial boost to the sector's performance. Information technology and health care were also strong performers, posting returns of 8.8% and 8.7% respectively. Led by an ongoing slide in oil prices, which closed the year below $40 /barrel, energy was the only sector to post negative performance for the quarter. This energy weakness is further illustrated on the table below with nine of the ten worst performing stocks in the Russell 1000 coming from the sector. Over calendar year 2015, five of ten sectors in the large cap index had positive performance with the consumer discretionary (7.7 %) and health care (7.1 %) sectors posting the strongest results. On the negative side, commodity price driven sectors were the worst performers for the year with energy (- 22.6%) and materials ( -8.9 %) suffering the brunt of the losses. • Similar to large cap indices, small cap index performance was largely positive for the quarter with only the consumer discretionary ( -3.1 %) and energy ( -8.0 %) sectors posting negative returns. However, in contrast to the large cap benchmark's balanced one -year sector results, only two sectors, health care (8.6 %) and information technology (2.7 %), managed to post positive returns. Similar to the large cap index, the energy ( -39.3) and materials (- 22.7 %) sectors posted the Russell 2000's weakest annual sector performance. ■ Using the S &P 500 as a proxy, trailing P/E ratios for five GICS sectors were below their 20 -year averages at quarter -end. The information technology and financials sectors were trading at the largest discount to their long -term average P/E ratios. In contrast, telecommunication services, utilities, and consumer discretionary sector valuations were the most extended relative to historical P/E ratios. Consumer Disc (13.6 %) Consumer Staples (9.0 %) Energy (6.8 %) Financials (17.5 %) Health Care (14.2 %) Industrials (10.6 %) Info Technology (20.0 %) Materials (3.1 %) Telecom Services (2.2 %) Utilities (3.0 %) The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2015 Russell 1000 1 ■Quarter 01 -Year 5.0% 7.7% 7.3% 5.7% -0.9% - 22.6% 5.6% -0.6% .7% 7.1 ° 7.z o -2. % 8.8% 5.6% 9.0% -8.9° 7.0% .6% 1.5% -5.5% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Russell 2000 ❑Quarter ❑1 -Year Consumer Disc (13.9 %) Consumer Staples (3.4 %) Energy (3.0 %) Financials (25.9 %) Health Care (15.4 %) Industrials (12.4 %) Info Technology (17.8 %) Materials (3.7 %) Telecom Services (0.9 %) Utilities (3.7 %) -40'0% -30'0% -20'0% -10'0% 0.0% 10'0% Tim /� Source: Morningstar Direct 4 ( 1zOGDAHN `� GROUP -3.1% - 10.4% -8.0% 3.3 3.1 % -39.3% -0.2 9.9% 3.6% 2.8% - 12.9% 6.8% 3.0% - 22.7% 6.2 o -1.9% 4=1 4.5 -2.0% -40'0% -30'0% -20'0% -10'0% 0.0% 10'0% Tim /� Source: Morningstar Direct 4 ( 1zOGDAHN `� GROUP Russell 1000 Apple Inc Top 10 Weighted Weight 2.97% Stocks 1-Qtr Return -4.2% 1-Year Return -3.0% Sector Information Technology Microsoft Corp 2.20% 26.2% 22.7% Information Technology Exxon Mobil Corporation 1.60% 5.8% -12.8% Energy General Electric Co 1.43% 24.4% 27.5% Industrials Johnson & Johnson 1.40% 10.8% 1.2% Health Care Amazon.com Inc 1.26% 32.0% 117.8% Consumer Discretionary Wells Fargo & Co 1.24% 6.6% 1.8% Financials Berkshire Hathaway Inc Class B 1.20% 1.3% -12.1% Financials JPMorgan Chase & Co 1.20% 9.1% 8.4% Financials Facebook Inc Class A 1.11% 16.4% 1 34.1% 1 Information Technology ITop 10 Lsell 000 Keurig Green Mountain Inc Performing 0.06% Stocks (by e 72.6% Quarter) -31.1% Consumer Staples Advanced Micro Devices Inc 0.00% 66.9% 7.5% Information Technology Rayonier Advanced Materials Inc 0.00% 61.1% -54.9% Materials Rovi Corp 0.00% 58.8% -26.3% Information Technology Airgas Inc 0.05% 55.5% 22.7% Materials First Solar Inc 0.02% 54.4% 48.0% Information Technology lonis Pharmaceuticals Inc 0.04% 53.2% 0.3% Health Care SolarWinds Inc 0.02% 50.1% 18.2% Information Technology SunPower Corp 0.01% 49.8% 16.2% Information Technology Bruker Corp 0.01% 47.7% 23.7% Health Care ks (by 000 Russell -1=1& Teekay Corp 0.00% -66.2% Quarter) 1-Year Sector Return -79.8% Energy Peabody Energy Corp 0.00% -62.9% -93.4% Energy Ultra Petroleum Corp 0.00% -60.9% -81.0% Energy Targa Resources Corp 0.01% -46.6% -73.4% Energy Tidewater Inc 0.00% -45.5% -77.1% Energy Kinder Morgan, Inc. 0.13% -45.1% -62.8% Energy Southwestern Energy Co 0.01% -44.0% -73.9% Energy GoPro Inc Class A 0.01% -42.3% -71.5% Consumer Discretionary Golar LNG Ltd 0.01% -41.9% -54.0% Energy Seadrill Ltd 0.01% -40.7% -70.1% Energy The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2015 �PSN Tim Source: Morningstar Direct 5 BOGDAHN �� GROUP STERIS PLC 0.38% 16.4% 17.8% Health Care Tyler Technologies Inc 0.35% 16.8% 59.3% Information Technology Dyax Corp 0.33% 97.1 % 167.6% Health Care CubeSmart 0.30% 13.3% 42.4% Financials Manhattan Associates Inc 0.29% 6.2% 62.5% Information Technology Neurocrine Biosciences Inc 0.29% 42.2% 153.2% Health Care Casey's General Stores Inc 0.28% 17.3% 34.5% Consumer Staples Vail Resorts Inc 0.28% 23.6% 43.7% Consumer Discretionary Anacor Pharmaceuticals Inc 0.28% -4.0% 250.3% Health Care Piedmont Natural Gas Co 0.27% 43.1% 49.4% 1 Utilities Top 10 Performing Stocks (by Quarter) Russell 2000 eight Pacific Biosciences of California Inc 0.05% 258.7% 67.5% Health Care Weight Watchers International Inc 0.04% 257.4% -8.2% Consumer Discretionary Energy Recovery Inc 0.00% 230.4% 34.2% Industrials Vital Therapies Inc 0.01% 185.1% -53.8% Health Care Five Prime Therapeutics Inc 0.06% 169.7% 53.7% Health Care Five9Inc 0.01% 135.1% 94.2% Information Technology Resolute Energy Corp 0.00% 124.2% -34.1% Energy Ohr Pharmaceutical Inc 0.00% 122.5% -26.4% Health Care Willbros Group Inc 0.00% 113.5% -57.1% Energy Ocata Therapeutics Inc 0.02% 101.4% 38.3% Health Care FWe . Magnum Hunter Resources Corporation 0.00% -95.3% -99.5% Energy Miller Energy Resources Inc 0.00% -95.1% -99.7% Energy American Eagle Energy Corp 0.00% -90.7% -99.8% Energy Vantage Drilling Co 0.00% -89.7% -99.5% Energy Threshold Pharmaceuticals Inc 0.00% -88.2% -84.9% Health Care Hercules Offshore Inc 0.00% -86.3% -99.2% Energy Walter Energy Inc 0.00% -86.0% -99.2% Materials Repros Therapeutics Inc 0.00% -83.7% -87.9% Health Care Corporate Resource Services Inc 0.00% -83.3% -99.9% Industrials Noranda Aluminum Holding Corp 0.00% -80.5% -98.7% Materials �PSN Tim Source: Morningstar Direct 5 BOGDAHN �� GROUP The Market Environment International and Regional Market Index Performance (Country Count) As of December 31, 2015 ■ The quarter started strong as investors anticipated additional economic stimulus announcements from the European Central Bank (ECB) and the AC World x US (45) People's Bank of China (PBoC). The latter occurred in October when the PBoC lowered the banking reserve requirement, cut interest rates, and WORLD x US (22) removed a deposit cap that limited the rate of interest banks could pay savers. This stimulus package encouraged investors and initially drove EAFE (21) markets higher. However, when the ECB announced only a minimum cut in its deposit rate and a six -month extension to its quantitative easing program Europe & ME (16) on December 3rd, it was less than investors expected and global markets sold off through the remainder of the month. Despite a disappointing Pacific (5) December, the majority of international equity index results were positive for the 4th quarter in both local and USD terms. Only the European ( -8.2 %) and Emerging Mkt (23) Latin American ( -2.7 %) sub - segments of the emerging market index posted negative results in both local and USD terms for the quarter. Within broad EM EM EA (10) market USD quarterly results, developed market (3.2 %) returns easily EM Asia (8) outpaced emerging market (0.7 %) performance. EM Latin Amer (5) ■ Developed markets, as measured by the MSCI EAFE Index, performed well Quarter Performance ❑USD ❑ Local Currency 3.2 4.8% 3.9 5.7% 6.3% 2.6 °ro 5.2% 9.0% 8.6% o.7 °ro 1.s °ro -8.2% -1 s °ro .5% z.9 ° % o � - z.7 °% o I -2.1 olo during the quarter In both USD (4.7 %) and local currency (6.3 %) terms, but -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% the index's two largest countries posted mixed results for the period. As the ❑USD ❑Local Currency largest weight in the index, Japan's 9.3% return had a large positive impact 1 -Year Performance on broad index return as the country benefited from continued quantitative AC World x US (45) easing and some improvement in corporate earnings. Unfortunately, the benchmark's second largest country, the UK, managed only a mild 0.7% for WORLD x US (22) the period and struggled relative to other European markets due to its greater exposure to commodity sensitive industries. Finally, USD strength EAFE (21) was once again a major theme across global market index returns during 2015. While the trailing one -year USD performance was unilaterally lower Europe & ME (16) than local currency results, the disparity was particularly notable in developed market indices (outside of the Pacific index) where local currency Pacific (5) returns were positive for the year but USD equivalent results were negative. Emerging Mkt (23) ■ Emerging markets, as measured by the MSCI Emerging Market Index, returned 0.7% in USD and 1.5% in local currency for the quarter. The index's positive performance was driven by regional results in the EM Asia index as both the EM EMEA and EM Latin America indices posted negative results for the period. Over the trailing one -year period, the broad emerging market index and each of its regional index components finished the year in negative territory measured in both USD and local currency terms. EM EM EA (10) EM Asia (8) EM Latin Amer (5) -5.7% 1.9% -3.0% 14.0% 0.8% 5.3% 5.0% 3.0 6.0% - 14.9% -5.8% -20.0% 7 2.6% 9.8% -5.8% -31.0 -8.8% -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% THY, Source: MSCI Global Index Monitor (Returns are Net) 6 B O GDAH N GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 13.2% 5.6% 1.9% Consumer Staples 11.9% 5.2% 8.8% Energy 4.5% 0.7% -18.5% Financials 25.6% 3.5% -3.0% Health Care 11.9% 5.4% 7.8% Industrials 12.6% 6.4% 0.4% Information Technology 5.2% 10.3% 4.5% Materials 6.4% 1.2% -16.8% Telecommunication Services 4.9% 6.5% 3.4% Utilities Total 3.8% 00.0 2.2% -5.3% 0: 1.3% Sweden 2.9% 2.1% Consumer Discretionary 12.2% Quarter 4.5% -1.1% Consumer Staples 10.8% 3.8% 5.0% Energy 6.0% -0.6% -22.0% Financials 27.1% 2.5% -8.40X Health Care 9.6% 3.4% 5.8% Industrials 11.2% 4.6% -3.6% Information Technology 8.3% 8.3% -1.6% Materials 6.4% 0.3% -19.8% Telecommunication Services 5.2% 2.6% -4.4% Utilities 3.5% 1.3% -9.3% Netherlands 1DIPTA 2.1% 3.1% Consumer Discretionary 10.0% 2.2% -11.3% Consumer Staples 8.3% -1.8% -9.1% Energy 7.1% -0.1% -17.1% Financials 28.0% 0.9% -18.7% Health Care 2.9% 2.2% -5.2% Industrials 7.0% -3.2% -16.8% Information Technology 20.8% 6.4% -6.9% Materials 6.0% -1.9% -21.6% Telecommunication Services 6.8% -6.0% -19.6% Utilities Total 3.2% 100 .0% -1.3% r -20.8% Netherlands 2.9% 2.1% 3.1% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of December 31, 2015 Country "N��ff Japan 23.4% Weight 17.3% Return 'lWeyt 9.3% urn 9.6% United Kingdom 19.4% 14.3% 0.7% -7.6% France 9.7% 7.2% 1.7% -0.1% Switzerland 9.4% 6.9% 2.0% 0.4% Germany 9.1% 6.7% 7.7% -1.9% Australia 6.8% 5.0% 10.0% -10.0% Spain 3.2% 2.3% -2.6% -15.6% Hong Kong 3.1% 2.3% 6.0% -0.5% Netherlands 2.9% 2.1% 3.1% 1.3% Sweden 2.9% 2.1% 2.4% -5.0% Italy 2.4% 1.7% -2.3% 2.3% Denmark 1.9% 1.4% 6.7% 23.4% Belgium 1.4% 1.1% 13.6% 12.1% Singapore 1.3% 0.9% 4.2% -17.7% Finland 0.9% 0.7% 9.6% 2.0% Israel 0.8% 0.6% 8.9% 10.4% Norway 0.6% 0.4% -0.5% -15.0% Ireland 0.4% 0.3% 7.0% 16.5% Austria 0.2% 0.1% 6.9% 3.5% New Zealand 0.2% 0.1% 18.2% -6.3% Portugal 0.2% 0.1% 4.2% 0.9% Canada Total D- 5.9% -5.1% r -24.2% r China 5.5% 4.0% -7.8% Korea 3.2% 5.4% -6.7% Taiwan 2.5% 1.2% -11.7% India 1.8% -0.9% -6.1% South Africa 1.4% -10.6% -25.5% Brazil 1.1% -3.3% -41.4% Mexico 0.9% -1.2% -14.4% Russia 0.7% -4.1% 4.2% Malaysia 0.7% 7.9% -20.1% Indonesia 0.5% 20.8% -19.5% Thailand 0.4% -6.2% -23.5% Philippines 0.3% -0.5% -6.8% Turkey 0.3% -0.3% -31.9% Poland 0.3% -12.9% -25.4% Chile 0.2% -1.1% -17.7% Qatar 0.2% -10.2% -19.5% United Arab Emirates 0.2% -12.6% -17.9% Greece 0.1% -19.0% -61.3% Colombia 0.1% -9.4% -41.8% Peru 0.1% -8.1% -31.7% Hungary 0.1% 11.4% 36.3% Czech Republic 0.0% -11.3% -18.4% Egypt 0.0% -7.8% -23.7% �ps� THE Source: MSCI Global Index Monitor (Returns are Net in USD) 7 1JOGDAHN `� GROUP ■ Fixed income index performance was modestly negative for the 4th quarter. Much of the quarter's negative performance was attributable to the market's anticipation and reaction to the Fed's December decision to raise the Federal Funds Rate by 25 bps. This shift in monetary policy represented both an end to the Fed's seven year (December 2008) zero - interest rate policy and the first rate increase in nearly ten years (July 2006). The Fed's action caused a flattening of the U.S. Treasury yield curve with short -term yields rising more than long -term rates. Despite the larger increase in rates at the short end of the yield curve, longer -dated maturity issues underperformed due to their higher durations and the resulting greater sensitivity to interest rate increases. The calendar year's fixed income results were mixed with high - quality issues posting small, positive results, while lower- quality and international bonds posted negative performance for the year. ■ The broad market Aggregate benchmark posted a return of -0.6% for the quarter. Within the Aggregate index, the mortgage index, aided by its lower duration, was down less than Treasury and corporate issues during the quarter. While the Treasury and mortgage indices finished the year with positive returns, the combined impact of rate increases on the Treasury yield curve, and widening credit spreads during the second half of the year, caused the investment grade corporate index to end the year in negative territory. Due to persistent strength in the USD throughout 2015, unhedged global bond index performance lagged broad domestic index returns for both the quarter and the calendar year. ■ Lower credit quality and high yield indices underperformed other domestic indices for both the 4th quarter and the trailing year. Within both bond market segments, issues in energy and commodity related companies were hit particularly hard as credit spreads widened substantially in these industries. While theoretical liquidity concerns in the bond market had been expressed due to structural changes in trading and inventory since the financial crisis, these concerns became a reality during the quarter when the Third Avenue Focused Credit Fund (TFCVX) abruptly closed and suspended investor redemptions in order to liquidate the fund's high yield, illiquid positions in an orderly fashion. Only time will tell if this problem was due to excessive risk taking by the single fund or if it is more endemic of the overall structure of the high yield market. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of December 31, 2015 AAA (5.2) AA (5.9) A (7.0) Baa (7.2) U.S. High Yield (4.3) U.S. Treasury (5.9) U.S. Mortgage (4.5) U.S. Corporate IG (7.0) U.S. TIPS (4.9) Aggregate (5.7) Intermediate Agg (4.2) Global Agg x US (7.4) Multiverse (6.5) Quarter Performance -2.1% -3.0% -2.0% 1 -Year Performance AAA (5.2) AA (5.9) A (7.0) Baa (7.2) U.S. High Yield (4.3) U.S. Treasury (5.9) U.S. Mortgage (4.5) U.S. Corporate IG (7.0) U.S. TIPS (4.9) Aggregate (5.7) Intermediate Agg (4.2) Global Agg x US (7.4) Multiverse (6.5) -0.6% -0.1 -0.1 -1.0% -0.9% -0.1 -0.6% -0.6% -0.6% -0.5% -1.3% -0.9% -1.0% 0.0% 1.0% 0.5% -2.7% -4.5% 0.8% -0.7% 1.5% -1.4% 0.5% -6.0% -3.3% -8.0% -6.0% -4.0% -2.0% 8 0.0% 2.0% ps� THE (� BOGDAHN `� GROUP • U.S. Treasury Inflation Protected Securities (TIPS) finished the quarter and year in negative territory returning -0.6% and -1.4 %, respectively. Current inflation readings continue to fall below the Fed's 2.0% target, and future inflation expectations are tempered by a strong USD and the deflationary pressures of falling energy and commodity prices. ■ Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The 1-Year Trailing Market Rates' chart illustrates that the 10 -year Treasury (green line) rose over the quarter and ended the year slightly higher than where it started. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread), which quantifies the additional yield premium that investors demand to purchase and hold non - Treasury issues. After falling below 2.0% early in 2015, this spread rose throughout the remainder of the year. This "spread- widening" is equivalent to an interest rate increase on corporate bonds, which creates drag on realized corporate bond returns. Finally, the Federal Funds Rate (light green shading) has a small uptick on the right of the graph showing the Fed's announcement to end its zero interest rate policy. The lower graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. Maturities out to seven years ended 2015 at their highest levels of the year while 10 -, 20 -, and 30 -year maturities issues finished the year marginally lower than their June 30th levels. ■ Based on moderate U.S. economic growth, stable employment, and below target inflation, it is unlikely the Fed will move aggressively to increase (normalize) the Federal Funds Rate during 2016. The Fed has stated future rate increases would be implemented at a measured pace and with ongoing assessment of current economic data. Geopolitical events and stimulus programs by other countries should keep demand for U.S. Treasury issues elevated and put downward pressure on how high domestic rates will rise in the short -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 December 31, 2015 1 -Year Trailing Market Rates 0.00 I Dec -14 Jan -15 Feb -15 Mar -15 Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve X12/31/2014 �--6/30/2015 9/30/2015 - 12/31/2015 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr THE /� Source: US Department of Treasury R FRED (Federal Reserve of St. Louis) 9 1J O GDl"1H N GROUP Asset Allocation By Segment as of September 30, 2015 : $3793619590 Asset Allocation Summary Total Fund As of December 31. 2015 Asset Allocation By Segment as of December 31, 2015 : $3990979487 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 17,625,211 47.2 _ Domestic Equity 18,729,194 47.9 m International Equity 5,167,176 13.8 m International Equity 5,401,598 13.8 ■ Domestic Fixed Income 7,273,006 19.5 ■ Domestic Fixed Income 7,239,783 18.5 Global Fixed Income 1,171,002 3.1 ■ Global Fixed Income 1,187,481 3.0 ■ Other Fixed Income 933,836 2.5 ■ Other Fixed Income 942,872 2.4 Real Estate 4,354,469 11.7 7 Real Estate 4,495,138 11.5 Cash Equivalent 836,889 2.2 Cash Equivalent 1,101,421 2.8 THE 10 [� BOGDAHN `'� GROUP. Allocation Asset Allocation By Manager as of September 30, 2015 : $3793619590 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of December 31. 2015 Asset Allocation By Manager as of December 31, 2015 : $3990979487 Market Value Allocation Vanguard Total Stock Market (VITSX) 17,625,211 47.2 Vanguard Total Stock Market (VITSX) 18,729,194 47.9 RBC Global (Voyageur) 5,167,176 13.8 RBC Global (Voyageur) 5,401,598 13.8 1 Galliard Core Fixed Income 4,739,662 12.7 d Galliard Core Fixed Income 4,722,477 12.1 Intercontinental 2,436,960 6.5 — Intercontinental 2,548,232 6.5 • American Core Realty Fund 1,940,406 5.2 ■ American Core Realty Fund 1,970,208 5.0 • Vanguard Short Term Bond Index (VSCSX) 1,361,547 3.6 1 Vanguard Short Term Bond Index (VSCSX) 1,359,069 3.5 Galliard TIPS 1,177,381 3.2 Templeton Global Bond Fund (FBNRX) 1,187,481 3.0 Templeton Global Bond Fund (FBNRX) 1,171,002 3.1 Galliard TIPS 1,166,900 3.0 Crescent Direct Lending Fund 933,836 2.5 Receipt & Disbursement 1,069,455 2.7 Receipt & Disbursement 808,409 2.2 Crescent Direct Lending Fund 942,872 2.4 THE 11 (� BOGDAHN `� GROUP Asset Allocation vs. Target Allocation Total Domestic Equity Total International Equity Total Domestic Fixed Income Total Global Fixed Income Total Real Estate Total Other Fixed Income -2.1 % -2.6% -2.0% s111118WIM WWII 3.5% Asset Allocation vs. Target Allocation Total Fund As of December 31, 2015 Receipt & Disbursement 2.7% -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 18,729,194 47.9 50.0 Total International Equity 5,401,598 13.8 15.0 Total Domestic Fixed Income 7,248,447 18.5 15.0 Total Global Fixed Income 1,187,481 3.0 5.0 Total Real Estate 4,518,440 11.6 10.0 Total Other Fixed Income 942,872 2.4 5.0 Receipt & Disbursement 1,069,455 2.7 0.0 Total Fund 39,097,487 100.0 100.0 THE. 12 r� 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 Dec -2015 3.13 22,792,387 61.00 24,130,792 61.72 18,729,194 47.90 18,729,194 47.90 5,401,598 13.82 5,401,598 13.82 9,378,800 23.99 7,248,447 18.54 4,722,477 12.08 1,166,900 2.98 1.359.069 3.48 1,187,481 3.04 1,187, 481 3.04 942,872 2.41 942,872 2.41 4,518,440 11.56 1,970,208 5.04 2,548,232 6.52 1,069,455 2.74 39,097,487 100.00 Sep -2015 1,171,002 3.13 22,792,387 61.00 17,625,211 47.17 17,625,211 47.17 5,167,176 13.83 5,167,176 13.83 9,383,428 25.12 7,278,590 19.48 4,739,662 12.69 1,177,381 3.15 1,361,547 3.64 1,171,002 3.13 1,171,002 3.13 933,836 2.50 933,836 2.50 4,377,366 11.72 1,940,406 5.19 2,436,960 6.52 808,409 2.16 37,361,590 100.00 13 Jun -2015 3.22 1,257,514 3.22 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 Asset Allocation Asset Allocation History By Portfolio As of December 31, 2015 Mar -2015 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 Dec -2014 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 THE. {� BOGDAHN \ GROUP. Historical Asset Allocation by Segment 100.0 1 90.0 80.0 70.0 60.0 0 0 .. 50.0 0 a 40.0 30.0 20.0 10.0 0.0 L 9/07 3/08 9/08 Domestic Equity Other Fixed Income Historical Asset Allocation by Segment Total Fund October 1, 2007 To December 31, 2015 0 3/09 9/09 3/10 International Equity Real Estate 9/10 3/11 9/11 Domestic Fixed Income Cash Equivalent 14 3/12 9/12 Global Fixed Income 3/13 9/13 3/14 9/14 3/15 12/15 ps� THE (� BOGDAHN `� GROUP Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of December 31, 2015 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 0 12.0 0 4.0 0 0 0 -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 47.90 (27) 13.82 (61) 18.54 (83) 3.04 (85) 2.41 (92) 11.56 (15) 2.74 (23) 5th Percentile 56.80 26.82 49.20 9.13 38.10 14.16 7.02 1 st Quartile 48.96 19.82 34.65 5.04 20.71 10.11 2.48 Median 41.85 14.61 29.01 4.64 11.59 7.14 1.31 3rd Quartile 30.54 12.19 21.09 3.97 5.22 5.06 0.63 95th Percentile 17.76 7.85 12.78 0.68 2.28 2.60 0.05 THE. 15 r {� BOGDAHN \ GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31, 2015 Financial Reconciliation Quarter to Date In THE. {� BOGDAHN \ GROUP. Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 10/01/2015 Transfers Fees Expenses Deprec. 12/31/2015 Total Equity 22,792,387 12,966 - 12,966 -954 124,629 1,214,731 24,130,792 Total Domestic Equity 17,625,211 - - - 104,842 999,141 18,729,194 Vanguard Total Stock Market (VITSX) 17,625,211 - - - 104,842 999,141 18,729,194 Total International Equity 5,167,176 12,966 - 12,966 -954 19,786 215,590 5,401,598 RBC Global (Voyageur) 5,167,176 12,966 - 12,966 -954 19,786 215,590 5,401,598 Total Fixed Income 9,383,428 -3,121 -3,403 -146 28,290 - 26,249 9,378,800 Total Domestic Fixed Income 7,278,590 3,403 -3,403 -146 12,730 -42,727 7,248,447 Galliard Core Fixed Income 4,739,662 3,403 -3,403 - - - 17,185 4,722,477 Galliard TIPS 1,177,381 - - -146 1,950 - 12,284 1,166,900 Vanguard Short Term Bond Index (VSCSX) 1,361,547 - - 10,780 - 13,259 1,359,069 Total Global Fixed Income 1,171,002 - 10,484 10,484 16,478 1,187,481 Templeton Global Bond Fund (FBNRX) 1,171,002 - 10,484 10,484 16,478 1,187,481 Total Other Fixed Income 933,836 3,960 5,076 - 942,872 Crescent Direct Lending Fund 933,836 3,960 - 5,076 - 942,872 Total Real Estate 4,377,366 - 22,896 - 36,685 54,611 146,044 4,518,440 American Core Realty Fund 1,940,406 - 22,896 -5,444 28,746 29,396 1,970,208 Intercontinental 2,436,960 - - - - 31,241 - 25,865 116,648 2,548,232 Receipt & Disbursement 808,409 13,051 857,459 - 592,517 - - 16,967 20 - 1,069,455 Total Fund Portfolio 37,361,590 - 857,459 - 592,517 - 53,054 - 18,067 207,550 1,334,526 39,097,487 In THE. {� BOGDAHN \ GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2015 To December 31, 2015 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2015 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec./ Deprec. Market Value 12/31/2015 Total Equity 22,792,387 12,966 - 12,966 -954 124,629 1,214,731 24,130,792 Total Domestic Equity 17,625,211 - - - 104,842 999,141 18,729,194 Vanguard Total Stock Market (VITSX) 17,625,211 - - - 104,842 999,141 18,729,194 Total International Equity 5,167,176 12,966 - 12,966 -954 19,786 215,590 5,401,598 RBC Global (Voyageur) 5,167,176 12,966 - 12,966 -954 19,786 215,590 5,401,598 Total Fixed Income 9,383,428 -3,121 -3,403 -146 28,290 - 26,249 9,378,800 Total Domestic Fixed Income 7,278,590 3,403 -3,403 -146 12,730 -42,727 7,248,447 Galliard Core Fixed Income 4,739,662 3,403 -3,403 - - - 17,185 4,722,477 Galliard TIPS 1,177,381 - - -146 1,950 - 12,284 1,166,900 Vanguard Short Term Bond Index (VSCSX) 1,361,547 - - 10,780 - 13,259 1,359,069 Total Global Fixed Income 1,171,002 - 10,484 10,484 16,478 1,187,481 Templeton Global Bond Fund (FBNRX) 1,171,002 - 10,484 10,484 16,478 1,187,481 Total Other Fixed Income 933,836 3,960 5,076 - 942,872 Crescent Direct Lending Fund 933,836 3,960 5,076 942,872 Total Real Estate 4,377,366 - 22,896 - 36,685 54,611 146,044 4,518,440 American Core Realty Fund 1,940,406 - 22,896 -5,444 28,746 29,396 1,970,208 Intercontinental 2,436,960 - - - - 31,241 - 25,865 116,648 2,548,232 Receipt & Disbursement 808,409 13,051 857,459 - 592,517 - - 16,967 20 - 1,069,455 Total Fund Portfolio 37,361,590 - 857,459 - 592,517 - 53,054 - 18,067 207,550 1,334,526 39,097,487 17 THE. {� BOGDAHN \ GROUP. Comparative Performance Trailling Returns Total Fund (Net) Total Fund Policy Total Fund (New Mgrs) (Net) Total Fund Policy Total Fund (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Fund (New Mgrs) (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Equity Total Equity Policy Total Domestic Equity Total Domestic Equity Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total International Equity MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Total Fixed Income Total Fixed Policy Total Domestic Fixed Income Total Domestic Fixed Policy IM U.S. Large Cap Core Equity (SA +CF) Median Total Global Fixed Income Total Global Fixed Income Policy IM Global Fixed Income (MF) Median Total Real Estate NCREIF Fund Index -ODCE (VVV) IM U.S. Open End Private Real Estate (SA +CF) Median Comparative Performance Trailing Returns Total Fund As of December 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date 4.00 4.00 9.94 8.43 5.29 11/01/2000 4.06 4.06 1.95 9.74 8.94 5.05 4.00 4.00 1.82 9.94 8.43 4.79 10/01/2007 4.06 4.06 1.95 9.74 8.94 5.71 4.14 (6) 4.14 (6) 2.16 (7) 10.32 (2) 8.99 (3) 5.95 (17) 11/01/2000 4.06 (7) 4.06 (7) 1.95 (7) 9.74 (5) 8.94 (3) 5.05 2.82 2.82 -0.05 7.63 7.02 5.41 4.14 (6) 4.14 (6) 2.16 (7) 10.32 (2) 8.99 (3) 5.37 (16) 10/01/2007 4.06 (7) 4.06 (7) 1.95 (7) 9.74 (5) 8.94 (3) 5.71 (5) 2.82 2.82 -0.05 7.63 7.02 4.65 5.88 5.88 0 0.64 13.33 10.47 5.84 01/01/2001 5.92 5.92 0.31 12.59 10.32 4.55 6.26 (42) 6.26 (42) 0.42 (64) 14.67 (63) 11.40 (73) 5.83 (37) 11/01/2000 6.27 (42) 6.27 (42) 0.48 (62) 14.74 (61) 12.18 (63) 4.40 (93) 5.94 5.94 1.39 15.26 12.63 5.42 4.56 (36) 4.56 (36) 1.40 (24) 9.50 (8) 7.78 (9) 5.81 (63) 11/01/2000 4.75 (30) 4.75 (30) -0.39 (36) 5.46 (45) 4.07 (47) 3.92 (95) 3.92 3.92 -1.66 5.19 3.92 6.20 0.02 0.02 _ ' 1.12 1.01 5.04 ' 11/01/2000 -0.51 -0.51 1.21 2.74 4.96 -0.41 (100) -0.41 (100) 1.21 (52) 0.89 (100) 2.89 (100) 4.95 (69) 11/01/2000 -0.51 (100) -0.51 (100) 1.21 (52) 1.41 (100) 2.74 (100) 4.96 (68) 5.94 5.94 1.39 15.26 12.63 5.42 2.29 (1) 2.29 (1) -3.91 (54) 0.06 (33) N/A 3.79 (13) 12/01/2011 -1.23 (77) -1.23 (77) -3.57 (47) -2.69 (74) N/A -1.39 (89) -0.82 -0.82 -3.71 -1.37 1.36 1.11 4.61 (14) 4.61 (14) 14.72 (65) 14.51 (42) 14.71 (39) =3 (17) 10/01/2007 3.34 (55) 3.34 (55) 15.01 (61) 13.81 (65) 13.66 (63) 4.38 3.37 3.37 15.33 14.16 14.38 4.19 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 18 BOGDAH N GROUP Comparative Performance Trailing Returns Total Fund As of December 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date RBC Global (Voyageur) 4.56 (36) 4.56 (36) 1.40 (24) 9.50 (8) 7.78 (9) 2.33 (17) 11/01/2007 MSCI EAFE Index 4.75 (30) 4.75 (30) -0.39 (36) 5.46 (45) 4.07 (47) -0.73 (68) IM International Large Cap Value Equity (SA +CF) Median 3.92 3.92 -1.66 5.19 3.92 -0.16 Vanguard Total Stock Market (VITSX) 6.26 (14) 6.26 (14) 0.42 (26) N/A N/A 12.95 (29) 03/01/2013 Vanguard Total Stock Market Index Hybrid 6.25 (15) 6.25 (15) 0.40 (27) 14.73 (29) 12.19 (17) 12.98 (28) IM U.S. Multi -Cap Core Equity (MF) Median 4.83 4.83 -1.52 13.42 10.43 11.49 Galliard Core Fixed Income -0.36 (35) -0.36 (35) 1.54 (26) 1.55 (37) 3.22 (32) 4.17 (75) 10/01/2007 Barclays Intermediate Aggregate Index -0.51 (63) -0.51 (63) 1.21 (63) 1.41 (49) 2.74 (66) 4.12 (78) IM U.S. Intermediate Duration (SA +CF) Median -0.44 -0.44 1.30 1.39 2.94 4.43 Vanguard Short Term Bond Index (VSCSX) -0.18 (9) -0.18 (9) 1.23 (4) N/A N/A 1.23 (4) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index -0.37 (27) -0.37 (27) 1.24 (4) 1.61 (4) 2.81 (17) 1.24 (4) IM U.S. Intermediate Investment Grade (MF) Median -0.52 -0.52 0.44 0.60 1.94 0.44 Galliard TIPS -0.88 (98) -0.88 (98) -0.05 (4) -1.67 (12) 1.60 (90) 3.23 (91) 10/01/2007 Barclays U.S. TIPS 1 -10 Year -0.70 (80) -0.70 (80) -0.52 (22) -1.77 (21) 1.64 (87) 3.31 (90) IM U.S. TIPS (SA +CF) Median -0.65 -0.65 -1.40 -2.19 2.54 4.03 Templeton Global Bond Fund (FBNRX) 2.29 (1) 2.29 (1) -3.91 (54) 0.07 (33) N/A 3.80 (13) 12/01/2011 Citigroup World Government Bond Index -1.23 (77) -1.23 (77) -3.57 (47) -2.69 (74) -0.08 (81) -1.39 (89) IM Global Fixed Income (MF) Median -0.82 -0.82 -3.71 -1.37 1.36 1.11 American Core Realty Fund 3.03 (75) 3.03 (75) 15.37 (42) 13.11 (75) 13.12 (75) 4.13 (62) 10/01/2007 American Core Realty Policy 3.43 (49) 3.43 (49) 15.17 (60) 13.59 (69) 13.54 (65) 6.77 (1) IM U.S. Open End Private Real Estate (SA +CF) Median 3.37 3.37 15.33 14.16 14.38 4.19 Intercontinental 5.85 (1) 5.85 (1) 14.77 (64) 15.24 (37) 15.47 (31) 15.53 (32) 10/01/2010 NCREIF Fund Index -ODCE 3.34 (55) 3.34 (55) 15.01 (61) 13.81 (65) 13.66 (63) 14.02 (63) IM U.S. Open End Private Real Estate (SA +CF) Median 3.37 3.37 15.33 14.16 14.38 14.93 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. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 19 BOGDAH N GROUP Comparative Performance - IRR Crescent Direct Lending Fund QTR 0.54 1 YR 6.83 Comparative Performance - IRR Inception 3.72 As of December 31, 2015 Inception Date 10/14/2014 ps� THE 20 BOGDAHN `� GROUP Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2015 Comparative Performance Fiscal Year Returns FYTD Oct -2014 To Sep -2015 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 Total Fund (Net) 4.00 (7) 0.33 (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) Total Fund Policy 4.06 (7) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (20) 2.51 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) All Public Plans -Total Fund Median 2.82 2.82 -0.50 -0.50 10.16 12.51 17.89 0.32 9.95 17.89 1.66 -13.40 14.25 Total Fund (New Mgrs) (Net) 4.00 (7) 0.33 (27) 11.85 (14) 15.72 (7) 18.95 (28) -1.17 (81) 10.66 (33) 0.68 (64) -16.82 (92) N/A Total Fund Policy 4.06 (7) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (20) 2.51 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) All Public Plans -Total Fund Median 2.82 0.55 -0.50 11.38 10.16 12.51 17.89 0.32 9.95 2.51 1.66 -13.40 14.25 Total Fund (Gross) 4.14 (6) 0.63 (22) 12.21 (9)' 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) 1.43 (53) -16.48 (90) 13.92 (57) Total Fund Policy 4.06 (7) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (20) 2.51 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) All Public Plans -Total Fund Median 2.82 -0.50 10.16 12.51 17.89 0.32 9.95 1.66 -13.40 14.25 Total Fund (New Mgrs) (Gross) 4.14 (6) 0.63 (22) 12.21 (9) 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) 1.39 (54) -16.46 (90) N/A Total Fund Policy 4.06 (7) 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (20) 2.51 (12) 9.13 (73) 0.33 (68) -12.11 (33) 11.97 (86) All Public Plans -Total Fund Median 2.82 -0.50 10.16 12.51 17.89 0.32 9.95 1.66 -13.40 14.25 Total Equity 5.88 -1.52 23.09 -4.58 5.6i 18.52 Total Equity Policy 5.92 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 6.26 (42) -0.59 (61) 17.58 (69) 21.85 (34) 27.76 (62) -3.30 (90) 14.19 (8) -4.29 (38) -21.66 (63) 17.58 (43) Total Domestic Equity Policy 6.27 (42) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (31) -6.91 (64) -21.98 (68) 16.44 (61) IM U.S. Large Cap Core Equity (SA +CF) Median 5.94 -0.02 19.25 20.72 29.69 1.15 9.47 -5.74 -20.38 16.98 Total International Equity 4.56 (36) -4.36 (21) 10.08 (9) 27.54 (16) 24.74 (3) -8.75 (53) 11.69 (14) 11.87 (20) -39.55 (100) 23.63 (55) MSCI EAFE Index 4.75 (30) -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (53) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (40) IM International Large Cap Value Equity (SA +CF) Median 3.92 -9.06 5.72 22.84 15.04 -8.56 5.02 6.27 -27.35 23.87 Total Fixed Income 0.02 1.40 6.34 4.67 9.27 IF 10.53 4.96 Total Fixed Policy -0.51 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income -0.41 (100) 2.31 (25) 2.61 (100) -1.30 (100) 5.88 (100) 4.67 (12) 9.27 (53) 10.53 (2) 0.64 (1) 4.96 (100) Total Domestic Fixed Policy -0.51 (100) 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) IM U.S. Large Cap Core Equity (SA +CF) Median 5.94 -0.02 19.25 20.72 29.69 1.15 9.47 -5.74 -20.38 16.98 Total Global Fixed Income 2.29 (1) -7.63 (90) 6.31 (12) 3.53 (3) N/A N/A N/A N/A N/A N/A Total Global Fixed Income Policy -1.23 (77) -3.83 (52) -0.07 (97) -4.60 (85) N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -0.82 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 Total Real Estate 4.61 (14) 14.27 (69) 13.47 (40) 16.42 (20) 12.81 (54) 15.82 (77) 2.71 (77) -32.42 (35) 4.72 (38) N/A NCREIF Fund Index -ODCE 3.34 (55) 14.92 (64) 12.40 (69) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) IM U.S. Open End Private Real Estate (SA +CF) Median 3.37 15.93 12.78 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 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 /� u7�7 ( BOGD1'1111�1 `� 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 December 31, 2015 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 FYTD To To To To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 N/A N/A N/A N/A 33.21 (8) -1.17 (75) 11.93 (44) 0.53 (23) -15.13 (17) N/A 7.32 (47) 3.17 (56) 19.15 (38) 19.27 (64) 29.19 (38) 3.78 (29) 12.65 (37) -1.85 (38) -20.88 (54) 19.35 (57) 7.07 3.75 18.03 20.31 27.52 1.36 11.31 -3.06 -20.30 20.19 4.56 (36) -4.36 (21) 10.08 (9) 27.54 (16) 24.74 (3) -8.75 (53) 11.69 (14) 11.87 (20) N/A N/A 4.75 (30) -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (53) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (40) 3.92 -9.06 5.72 22.84 15.04 -8.56 5.02 6.27 -27.35 23.87 6.26 (14) -0.59 (32) 17.77 (28) N/A N/A N/A N/A N/A N/A N/A 6.25 (15) -0.55 (31) 17.77 (28) 21.60 (62) 30.28 (17) 0.71 (21) 11.16 (30) -6.03 (57) -21.19 (31) 16.98 (46) 4.83 -1.86 15.84 23.07 26.42 -1.89 9.57 -5.46 -22.86 16.64 -0.36 (35) 3.04 (24) 3.15 (37) -0.64 (75) 5.82 (45) 4.16 (27) 9.63 (17) 12.08 (38) -1.68 (95) N/A -0.51 (63) 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (22) 7.52 (77) 9.69 (81) 4.16 (36) 5.33 (68) -0.44 2.69 2.87 -0.27 5.57 3.60 8.25 11.50 3.26 5.47 -0.88 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A -0.70 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 -0.18 (9) N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.37 (27) 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) -0.52 1.21 1.70 -0.38 5.15 1.99 7.56 10.57 -0.36 4.26 2.29 (1) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A -1.23 (77) -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) -0.82 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 3.03 (75) 13.98 (71) 12.49 (65) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) -32.42 (35) 4.72 (38) N/A 3.43 (49) 14.71 (66) 12.39 (69) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 5.27 (28) N/A 3.37 15.93 12.78 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 5.85 (1) 13.96 (71) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A 3.34 (55) 14.92 (64) 12.40 (69) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) 3.37 15.93 12.78 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 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 /� u7�7 Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 ( BOGD1'1111�1 `� GROUP Performance Review Total Fund Portfolio As of December 31. 2015 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 14.00 28.00 12.00 • 24.00 10.00 0 20.00 0 • • 0 8.00 16.00 • 6.00 ` 00 12.00 • 0 III 0 4.00 00 00 K K ■8.00 2.00 ■ 0 0 4.00 0.00 • -2.00 0.00 • • -4.00 4.00 ■ -6.00 -8.00 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 • Total Fund Portfolio 4.14 (6) 4.14 (6) 2.16 (7) 4.56 (11) 10.32 (2) 11.43 (1) 8.99 (3) • Total Fund Policy 4.06 (7) 4.06 (7) 1.95 (7) 4.81 (9) 9.74 (5) 10.59 (7) 8.94 (3) Median 2.82 2.82 -0.05 3.20 7.63 8.83 7.02 Comparative Performance • Total Fund Portfolio 0.63 (22) 12.21 (9) 16.33 (5) 19.81 (16) -0.45 (68) 11.40 (20) • Total Fund Policy 0.55 (23) 11.38 (21) 15.00 (13) 19.61 (20) 2.51 (12) 9.13 (73) Median -0.50 10.16 12.51 17.89 0.32 9.95 3.24 (80) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Total Fund Portfolio -4.68 (39) 0.58 (13) 2.32 (61) 2.58 (35) -1.02 (47) 3.24 (80) Total Fund Policy -4.63 (36) 0.40 (21) 2.32 (61) 2.63 (33) -0.62 (23) 3.88 (33) All Public Plans -Total Fund Median -5.01 -0.09 2.44 2.27 -1.12 3.63 23 THE (� BOGDAHN `'� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 20.0 e Over o Performance '0 15.0 � - .. ke o 0 EL 10.0 � v c LL 5.0 A 0 0.0 0.0 5.0 10.0 Total Fund Policy (% ) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 11.57 10.68 9.79 «' 8.90 v K 8.01 7.12 5.94 6.03 6.12 Performance Review Total Fund Portfolio As of December 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years 10.32 6.52 • Total Fund Portfolio y � o.o 9.46 O Total Fund Policy o'580008880089 6.08 O Total Fund Policy o 8.26 0 8 e Median 7.02 w 25.0 0 0 1 Tracking Up 00 Information Sharpe Downside Error `w 50.0 - Alpha Ratio Ratio Beta Risk Capture a E 75.0 - Total Fund Portfolio 1.06 106.35 108.46 Under w 0.54 1.55 1.06 2.76 Total Fund Policy 0.00 100.00 100.00 0.00 Performance 1.00 2.70 Historical Statistics - 5 Years ' 100.0 Tracking Up Down Information Sharpe 15.0 20.0 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 Beta Risk Capture 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count x 1 1 6.21 6.30 6.39 6.48 6.57 Risk (Standard Deviation %) Return Standard Deviation 6.66 lb Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 9.75 9.10 O 8.45 «' 7.80 v K 7.15 6.50 7.8 8.1 8.4 17 (85 %) 2 (10 %) 1 (5 %) 0 (0 %) 15 (75 %) 4 (20 %) 1 (5 %) 0 (0 %) x 1 1 8.7 9.0 9.3 9.6 Risk (Standard Deviation %) Return Standard Deviation 9.9 • Total Fund Portfolio 10.32 6.52 • Total Fund Portfolio 8.99 9.46 O Total Fund Policy 9.74 6.08 O Total Fund Policy 8.94 8.26 Median 7.63 6.08 Median 7.02 8.36 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.06 106.35 108.46 -0.01 0.54 1.55 1.06 2.76 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 1.71 107.62 123.53 -1.04 0.09 0.96 1.13 5.77 Total Fund Policy 0.00 100.00 100.00 1.00 4.79 24 ps� THE (� BOGDAHN GROUP Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 25.00 20.00 15.00 y p 10.00 v 5.00 K 0.00 -5.00 -10.00 15.00 0 0 I Comparative Performance 44.00 36.00 28.00 20.00 v 12.00 K 4.00 -4.00 -12.00 Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2015 ■ J -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 (32) 17.77 (28) N/A N/A N/A N/A • VG Total Stock Mkt Hybrid -0.55 (31) 17.77 (28) 21.60 (62) 30.28 (17) 0.71 (21) 11.16 (30) Median -1.86 15.84 23.07 26.42 -1.89 9.57 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 6.26 (14) 6.26 (14) 0.42 (26) 6.31 (20) N/A N/A N/A • VG Total Stock Mkt Hybrid 6.25 (15) 6.25 (15) 0.40 (27) 6.32 (20) 14.73 (29) 15.15 (27) 12.19 (17) Median 4.83 4.83 -1.52 4.17 13.42 14.05 10.43 Comparative Performance 44.00 36.00 28.00 20.00 v 12.00 K 4.00 -4.00 -12.00 Performance Review VG Total Stock Mkt (VITSX) As of December 31. 2015 ■ J -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 (32) 17.77 (28) N/A N/A N/A N/A • VG Total Stock Mkt Hybrid -0.55 (31) 17.77 (28) 21.60 (62) 30.28 (17) 0.71 (21) 11.16 (30) Median -1.86 15.84 23.07 26.42 -1.89 9.57 25 PN THE (� BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 VG Total Stock Mkt (VITSX) -7.26 (35) 0.09 (39) 1.81 (57) 5.20 (39) -0.01 (32) 4.86 (36) VG Total Stock Mkt Hybrid -7.26 (34) 0.08 (39) 1.81 (58) 5.24 (36) -0.02 (32) 4.87 (35) IM U.S. Multi -Cap Core Equity (MF) Median -8.12 -0.15 2.16 4.56 -0.80 4.57 25 PN THE (� BOGDAHN `� GROUP Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 20.00 16.00 • 12.00 8.00 4.00 E _ K C' 0.00 O • -4.00 - id -8.00 -12.00 44.00 36.00 28.00 20.00 12.00 c K 4.00 -4.00 • -12.00 ■ -20.00 Performance Review RBC Global (Voyageur) As of December 31. 2015 -16.00 1 1 1 1 -28.00 J 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 • RBC Global (Voyageur) 4.56 (36) 4.56 (36) 1.40 (24) -0.76 (24) 9.50 (8) 14.64 (2) 7.78 (9) O RBC Global (Voyageur) -4.36 (21) 10.08 (9) 27.54 (16) 24.74 (3) -8.75 (53) 11.69 (14) • MSCI EAFE Index 4.75 (30) 4.75 (30) -0.39 (36) -2.46 (43) 5.46 (45) 8.44 (45) 4.07 (47) O MSCI EAFE Index -8.27 (44) 4.70 (63) 24.29 (41) 14.33 (53) -8.94 (55) 3.71 (67) Median 3.92 3.92 -1.66 -3.17 5.19 8.00 3.92 Median -9.06 5.72 22.84 15.04 -8.56 5.02 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 RBC Global (Voyageur) -10.23 (45) 1.78 (43) 6.14 (15) -1.39 (14) -7.80 (92) 2.57 (81) MSCI EAFE Index -10.19 (43) 0.84 (66) 5.00 (41) -3.53 (47) -5.83 (61) 4.34 (45) IM International Large Cap Value Equity (SA +CF) Median -10.78 1.35 4.52 -3.85 -5.66 4.15 o ps� THE (� BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 40.0 Over Performance 30.0 w o A o 20.0 Cb O M 10.0 0 O 0 C7 U 0.0 m K -10.0 -10.0 0.0 10.0 20.0 MSCI EAFE Index ( %) OOver Performance Earliest Date GO 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 12.47 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of December 31. 2015 O RBC Global (Voyageur) 3 Yr Rolling Percentile Ranking - 5 Years 12.56 O RBC Global (Voyageur) 7.78 y 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c 4.07 0 14.33 Median 5.19 p Median 3.92 14.52 w 25.0 0 50.0 00 0000 0 0 0 0 0 a p 0 0 0 0 0 Downside Error Market E 75.0 0 0 0 0 Alpha Ratio Ratio Beta Risk K Capture Capture Under 100.0 RBC Global (Voyageur) 4.89 106.43 83.01 Performance 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 30.0 40.0 Total Period 5 -25 25- Median Median -75 75 -95 7.36 Historical Statistics - 5 Years Count Count Count Count • RBC Global (Voyageur) 20 18 (90 %) 1 (5 %) 1 (5 %) 0 (0 %) • MSCI EAFE Index 20 0 (0 %) 9 (45 %) 9 (45 %) 2 (10 %) Market Peer Group Scatterg ram - 5 Years Alpha Ratio Ratio Beta Risk 10.00 Capture Capture O `.. 8.00 O E 6.00 v 4.00 2.00 12.76 13.05 13.80 14.40 15.00 15.60 16.20 16.80 17.40 18.00 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation O RBC Global (Voyageur) 9.50 12.56 O RBC Global (Voyageur) 7.78 16.98 O MSCI EAFE Index 5.46 11.35 O MSCI EAFE Index 4.07 14.33 Median 5.19 11.42 Median 3.92 14.52 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.89 106.43 83.01 4.32 0.77 0.79 0.93 6.72 MSCI EAFE Index 0.00 100.00 10C -- 1.00 7.36 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 5.30 109.65 91.99 3.74 0.69 0.56 0.99 10.02 MSCI EAFE Index 100.00 100.00 . 1.00 10.07 27 THE (� BOGDAHN `� GROUP Peer Group Analysis - IM Global Fixed Income (MF) 8.00 6.00 4.00 2.00 • • 0.00 v K -2.00 0 -4.00 -6.00 -8.00 10.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Templeton Global (FBNRX) 2.29 (1) 2.29 (1) -3.91 (54) -1.10 (54) 0.07 (33) 3.86 (9) N/A • Citigroup World Gvt Bond -1.23 (77) -1.23 (77) -3.57 (47) -2.04 (67) -2.69 (74) -1.63 (89) -0.08 (81) Median -0.82 -0.82 -3.71 -0.96 -1.37 1.01 1.36 Comparative Performance 20.00 16.00 12.00 8.00 4.00 v K 0.00 -4.00 -8.00 -12.00 ■ Performance Review Templeton Global (FBNRX) As of December 31. 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 THE 28 (� BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Templeton Global (FBNRX) -6.08 (100) -0.24 (10) 0.25 (45) -1.67 (76) 0.06 (15) 2.68 (40) Citigroup World Gvt Bond 1.71 (1) -1.55 (41) -2.51 (100) -1.49 (71) -3.78 (92) 2.27 (53) IM Global Fixed Income (MF) Median -0.35 -1.91 0.08 -1.04 -1.64 2.39 THE 28 (� BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over x Performance Z 8.0 m 4.0 O o a o c7 0.0 c O w -4.0 E v -8.0 1 1 -8.0 -4.0 0.0 4.0 Citigroup World Gvt Bond ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 1.00 0.00 -1.00 «' -2.00 -3.00 p -4.00 3.92 4.20 4.48 Performance Review Templeton Global (FBNRX) As of December 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O O c O K w 25.0 O O 50.0 - `w EL 75.0 - O O 00 O O O O O O O K Under 100.0 1 r T � O 0 O Performance 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 1 8.0 12.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count x 1 1 1 4.76 5.04 5.32 5.60 5.88 Risk (Standard Deviation %) Return Standard Deviation 6.16 * Templeton Global (FBNRX) 5 O Citigroup World Gvt Bond 20 Peer Group Scatterg ram - 5 Years 2.00 1.50 1.00 «' 0.50 K 0.00 O -0.50 4.35 4.40 4.45 3 (60 %) 2 (40 %) 0 (0 %) 0 (0 %) 0 (0 %) 1 (5 %) 2 (10 %) 17 (85 %) 1 1 4.50 4.55 4.60 4.65 Risk (Standard Deviation %) Return Standard Deviation 4.70 • Templeton Global (FBNRX) 0.07 5.71 • Templeton Global (FBNRX) N/A N/A O Citigroup World Gvt Bond -2.69 4.39 O Citigroup World Gvt Bond -0.08 4.43 Median -1.37 4.24 Median 1.36 4.64 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global (FBNRX) 6.66 6.47 1.12 0.74 0.43 0.03 0.19 4.17 Citigroup World Gvt Bond 0.00 100.00 100.00 0.00 1.00 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 1.00 3.24 ORA ps� THE (� BOGDAHN `� GROUP Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 5.78 4.96 4.14 3.32 2.50 «' 1.68 K 0.86 0.04 -0.78 ■ -1.60 -2.42 0 0� O ih Comparative Performance 17.00 14.00 11.00 8.00 r K 5.00 2.00 • • 1.00 Performance Review Galliard Core Fixed Inc As of December 31. 2015 i� -4.00 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 (24) 3.15 (37) -0.64 (75) 5.82 (45) 4.16 (27) 9.63 (17) • Barclays Int Agg Index 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (22) 7.52 (77) Median 2.69 2.87 -0.27 5.57 3.60 8.25 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc -0.36 (35) -0.36 (35) 1.54 (26) 2.93 (19) 1.55 (37) 2.45 (40) 3.22 (32) • Barclays Int Agg Index -0.51 (63) -0.51 (63) 1.21 (63) 2.66 (33) 1.41 (49) 1.95 (74) 2.74 (66) Median -0.44 -0.44 1.30 2.41 1.39 2.24 2.94 Comparative Performance 17.00 14.00 11.00 8.00 r K 5.00 2.00 • • 1.00 Performance Review Galliard Core Fixed Inc As of December 31. 2015 i� -4.00 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 (24) 3.15 (37) -0.64 (75) 5.82 (45) 4.16 (27) 9.63 (17) • Barclays Int Agg Index 2.95 (30) 2.74 (58) -0.71 (77) 4.31 (83) 4.22 (22) 7.52 (77) Median 2.69 2.87 -0.27 5.57 3.60 8.25 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Galliard Core Fixed Inc 1.04 (36) -0.64 (57) 1.51 (42) 1.10 (23) 0.09 (27) 1.65 (23) Barclays Int Agg Index 1.08 (31) -0.67 (61) 1.32 (79) 1.20 (17) 0.03 (39) 1.62 (27) IM U.S. Intermediate Duration (SA +CF) Median 0.93 -0.61 1.47 0.93 0.01 1.40 W ps� THE (� BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 15.0 Over Performance U C w 10.0 X U! � O U 5.0 O 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 1.62 1.56 1.50 «' 1.44 v K 1.38 1.32 1 1 1.86 1.89 1.92 1.95 1.98 Risk (Standard Deviation %) Return Performance Review Galliard Core Fixed Inc As of December 31. 2015 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.40 3.20 3.00 v 2.80 2 60 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 1 (5 %) 11 (55 %) 8 (40 %) N 1 1 1 2.01 2.04 1.90 1.92 1.94 1.96 1.98 2.00 2.02 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 2.04 • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 2.02 • Galliard Core Fixed Inc 3.22 / y 0.0 1.95 • Barclays Int Agg Index 2.74 1.93 Median 1.39 1.91 w 25.0 2.94 0 O O O Historical Statistics - 3 Years Tracking Up Down 0 0 0 Sharpe 0 Downside Error U 50.0 Alpha O Ratio Beta Risk 0 0 0 0 0 0 0 Galliard Core Fixed Inc 0.35 102.76 98.39 0.08 0.40 0 1.04 1.32 75.0 0 0 0 0 0 0 0 0 0 1.00 0 0 0 0 v 0 0 Tracking 0 0 0 Information K Downside Error Market Market Alpha Ratio Ratio Beta Under 100.0 Capture 1 1 1 Performance 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 15.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.40 3.20 3.00 v 2.80 2 60 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 1 (5 %) 11 (55 %) 8 (40 %) N 1 1 1 2.01 2.04 1.90 1.92 1.94 1.96 1.98 2.00 2.02 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 2.04 • Galliard Core Fixed Inc 1.55 2.02 • Galliard Core Fixed Inc 3.22 2.01 • Barclays Int Agg Index 1.41 1.95 • Barclays Int Agg Index 2.74 1.93 Median 1.39 1.91 Median 2.94 1.93 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.35 102.76 98.39 0.08 0.40 0.69 1.04 1.32 Barclays Int Agg Index 0.00 100.00 0.00 1.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.47 108.34 91.20 0.44 1.02 1.54 1.01 1.02 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 0.98 ca THE (� BOGDAHN GROUP Peer Group Analysis - IM U.S. TIPS (SA +CF) 4.40 3.53 2.66 1.79 0.92 E • r 0.05 • K O • • _0.82 D ANN -1.69 -2.56 -3.43 -4.30 IIIIIIIIIIIIIIIII� • e 17.00 14.00 11.00 8.00 5.00 c r 2.00 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 _1.00 i -4.00 • . -7.00 - -10.00 -13.00 Performance Review Galliard TIPS As of December 31. 2015 is 32 THE (� 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 • Galliard TIPS -0.88 (98) -0.88 (98) -0.05 (4) 0.40 (71) -1.67 (12) 0.00 (50) 1.60 (90) O Galliard TIPS -0.38 (20) 0.59 (84) -3.71 (10) 6.01 (98) 6.73 (96) 7.28 (94) • Barclays US TIPS 1 -10 Yr -0.70 (80) -0.70 (80) -0.52 (22) 0.19 (77) -1.77 (21) -0.11 (77) 1.64 (87) O Barclays US TIPS 1 -10 Yr -0.82 (56) 0.61 (78) -3.90 (18) 6.32 (91) 7.19 (84) 7.40 (94) Median -0.65 -0.65 -1.40 0.85 -2.19 0.00 2.54 Median -0.79 1.53 -5.62 9.02 9.54 9.36 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Galliard TIPS -0.60 (7) -0.44 (28) 1.90 (2) -1.21 (91) -1.94 (26) 2.90 (83) Barclays US TIPS 1 -10 Yr -0.86 (25) -0.15 (18) 1.20 (89) -1.00 (85) -1.99 (36) 2.94 (81) IM U.S. TIPS (SA +CF) Median -1.12 -1.06 1.46 -0.14 -2.02 3.72 32 THE (� BOGDAHN `'� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over Performance .... 8.0 rn a_ ~ 4.0 v A 70 0.0 4.0 1 -4.0 0.0 4.0 Barclays US TIPS 1 -10 Yr ( %) • Over Performance • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years -1.20 -1.40 emsS -1.60 • -1.80 O -2.00 Performance Review Galliard TIPS As of December 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years -1.67 4.16 • Galliard TIPS y 0.0 3.87 O Barclays US TIPS 1 -10 Yr -1.77 4.02 • Barclays US TIPS 1 -10 Yr 1.64 K w 25.0 c -2.19 4.95 0 O O v 50.0 -� a 5.00 Historical Statistics - 3 Years O 75.0 Tracking Up Down e a Information Under w Performance e e e e e 8 ^y-� O 0 e e O Q Market 100.0 e V Ratio Ratio Beta Risk 1 Capture Capture 8.0 12.0 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 95.87 5 -25 0.11 25- Median Median -75 75 -95 Total Period 100.00 100.00 0.00 Count 3.02 Count Count Count L 1 1 3.78 3.96 4.14 4.32 4.50 4.68 4.86 5.04 5.22 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 2.79 2.48 2.17 «' 1.86 1.55 1.24 1 3.52 3.74 3.96 2 (10 %) 1 (5 %) 1 (5 %) 16 (80 %) 1 (5 %) 1 (5 %) 1 (5 %) 17 (85 %) 1 1 1 4.18 4.40 4.62 4.84 5.06 Risk (Standard Deviation %) Return Standard Deviation 5.28 • Galliard TIPS -1.67 4.16 • Galliard TIPS 1.60 3.87 O Barclays US TIPS 1 -10 Yr -1.77 4.02 • Barclays US TIPS 1 -10 Yr 1.64 3.84 Median -2.19 4.95 Median 2.54 5.00 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.00 96.97 95.87 0.16 0.11 -0.41 1.03 3.03 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 1.00 3.02 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 0.85 98.19 98.05 -0.04 -0.03 0.43 1.01 2.39 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 33 ps� THE (� BOGDAHN GROUP Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 5.07 4.28 3.49 2.70 1.91 E v 1.12 W O K 0.33 -0.46 -1.25 -2.04 -2.83 1 1 i QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) -0.18 (9) -0.18 (9) 1.23 (4) N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index -0.37 (27) -0.37 (27) 1.24 (4) 1.65 (19) 1.61 (4) 2.73 (18) 2.81 (17) Median -0.52 -0.52 0.44 1.10 0.60 1.57 1.94 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of December 31. 2015 17.00 14.00 11.00 8.00 c 5.00 v K 2.00 -1.00 -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 1.70 -0.38 5.15 1.99 7.56 34 THE (� BOGDAHN `� GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 VG ST Bond Index (VSCSX) 0.59 (25) -0.22 (38) 1.04 (55) N/A N/A N/A Barclays US Corp 1 -5 Yr Index 0.58 (26) -0.21 (37) 1.24 (20) 0.36 (34) -0.09 (23) 0.97 (41) IM U.S. Intermediate Investment Grade (MF) Median 0.25 -0.36 1.07 0.26 -0.25 0.92 34 THE (� BOGDAHN `� GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 28.00 24.00 20.00 16.00 E v 12.00 K 8.00 4.00 Oman Oman 0.00 - -4.00 0 00 00 4 Comparative Performance 38.00 32.00 26.00 20.00 14.00 c v K 8.00 2.00 -4.00 - -10.00 - Performance Review American Core RE As of December 31. 2015 -16.00 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 • American Core RE 13.98 (71) 12.49 (65) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) d American Core RE Policy 14.71 (66) 12.39 (69) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) Median 15.93 12.78 13.22 12.90 16.62 6.39 1 Qtr QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 3.03 (75) 3.03 (75) 15.37 (42) 13.48 (59) 13.11 (75) 12.64 (67) 13.12 (75) • American Core RE Policy 3.43 (49) 3.43 (49) 15.17 (60) 13.72 (56) 13.59 (69) 12.94 (63) 13.54 (65) Median 3.37 3.37 15.33 14.33 14.16 13.58 14.38 Comparative Performance 38.00 32.00 26.00 20.00 14.00 c v K 8.00 2.00 -4.00 - -10.00 - Performance Review American Core RE As of December 31. 2015 -16.00 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 • American Core RE 13.98 (71) 12.49 (65) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) d American Core RE Policy 14.71 (66) 12.39 (69) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) Median 15.93 12.78 13.22 12.90 16.62 6.39 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 American Core RE 3.33 (69) 3.75 (50) 4.46 (24) 1.80 (94) 3.36 (50) 2.80 (65) American Core RE Policy 3.63 (45) 3.92 (43) 3.40 (59) 3.02 (65) 3.46 (43) 2.76 (67) IM U.S. Open End Private Real Estate (SA +CF) Median 3.48 3.74 3.56 3.50 3.35 3.15 35 ps� THE (� BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 13.11 24.0 1.29 Over 0.0 O O O O Performance .... 16.0 O American Core RE Policy 13.59 W K v 8.0 13.54 o U Median • • c � 0.0 U • E -8.0 ' 1.89 O O 16.0 -16.0 -8.0 0.0 8.0 American Core RE Policy ( %) • Under Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 8 8 ®® 14.35 8 v 14.00 Alpha Ratio Ratio 13.65 8 a O «' 13.30 Capture 100.0 O 12.95 96.64 N/A 2.01 12.60 9.73 0.81 0.60 0.80 1.00 1.20 100.00 Risk (Standard Deviation %) 3/11 9/11 Return 9/13 Performance Review American Core RE As of December 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years 13.11 1.29 y c 0.0 O O O O 1.29 O American Core RE Policy 13.59 K O 13.54 1.12 Median w 25.0 1.50 Median 14.38 1.89 O O 50.0 O O Tracking Up Down a 75.0- O e O 8 8 ®® e e 8 v Market Alpha Ratio Ratio Beta 8 a Capture Capture 100.0 American Core RE 1.09 96.64 N/A 2.01 Under 9.73 0.81 0.00 American Core RE Policy 0.00 100.00 Performance 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 1 16.0 24.0 5 -25 Up 25- Median Median -75 75 -95 Sharpe Total Period Count Count Count Count 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 14.70 14.28 E 13.86 «' 13.44 O K • 13.02 12 60 0 (0 %) 2 (10 %) 9 (45 %) 9 (45 %) 5 (25 %) 1 (5 %) 12 (60 %) 2 (10 %) 1 1.40 1.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 2.20 • American Core RE 13.11 1.29 • American Core RE 13.12 1.29 O American Core RE Policy 13.59 0.85 • American Core RE Policy 13.54 1.12 Median 14.16 1.50 Median 14.38 1.89 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.09 96.64 N/A 2.01 -0.40 9.73 0.81 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 15.13 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 0.96 97.07 N/A 2.26 -0.39 9.73 0.80 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 1.00 0.00 ps� THE (� BOGDAHN `� GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 28.00 24.00 20.00 16.00 E v 12.00 K 8.00 4.00 i IIIIIi 0.00 - -4.00 1 00 4 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 5.85 (1) 5.85 (1) 14.77 (64) 14.30 (51) 15.24 (37) 15.31 (26) 15.47 (31) • NCREIF Fund Index 3.34 (55) 3.34 (55) 15.01 (61) 13.75 (56) 13.81 (65) 13.09 (61) 13.66 (63) Median 3.37 3.37 15.33 14.33 14.16 13.58 14.38 Comparative Performance Performance Review Intercontinental As of December 31. 2015 38.00 32.00 26.00 20.00 14.00 E v K 8.00 2.00 -4.00 -10.00 -16.00 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 • Intercontinental 13.96 (71) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) N/A • NCREIF Fund Index 14.92 (64) 12.40 (69) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) Median 15.93 12.78 13.22 12.90 16.62 6.39 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 Intercontinental 3.67 (45) 3.37 (66) 1.18 (100) 5.10 (14) 3.79 (26) 2.42 (90) NCREIF Fund Index 3.68 (44) 3.82 (46) 3.39 (59) 3.26 (55) 3.24 (57) 2.93 (60) IM U.S. Open End Private Real Estate (SA +CF) Median 3.48 3.74 3.56 3.50 3.35 3.15 37 ps� THE (� BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over Performance °- 16.0 G r v ce O 0 E tom- 14.0 c U 12.0 10.0 1 1 10.0 12.0 14.0 NCREIF Fund Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 15.68 15.19 14.70 - r 14 91 Performance Review Intercontinental As of December 31. 2015 3 Yr Rolling Percentile Ranking - 5 Years 15.24 2.70 • Intercontinental y c 0.0 2.55 • NCREIF Fund Index 13.81 0.81 O NCREIF Fund Index A v 25.0 1.12 Median 14.16 0 0 0 0 0 0 0 14.38 1.89 Historical Statistics - 3 Years 0 0 0 X50.0_000000000 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk 0 0 0 0 0 0 0 0 0 0 r 75.0- Intercontinental 2.55 110.04 N/A -0.27 0 U! 1.12 0.00 NCREIF Fund Index 100.00 N/A 0.00 N/A Under 100.0 1 0.00 Historical Statistics - 5 Years 1 Performance 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 12/15 1 Downside Error Market Market Alpha Ratio 16.0 18.0 Beta Risk 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count N K • 13.72 13.23 1 1 1 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation lb Intercontinental 10 • NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 16.12 15.50 14.88 «' 14.26 v 13.64 O 13.02 1 0.60 0.90 1.20 1 (10 %) 9 (90 %) 0 (0 %) 0 (0 %) 0 (0 %) 7 (35 %) 12 (60 %) 1 (5 %) 1 1 1.50 1.80 2.10 Risk (Standard Deviation %) Return 2.40 2.70 Standard Deviation 3.00 • Intercontinental 15.24 2.70 • Intercontinental 15.47 2.55 • NCREIF Fund Index 13.81 0.81 O NCREIF Fund Index 13.66 1.12 Median 14.16 1.50 Median 14.38 1.89 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.55 110.04 N/A -0.27 0.52 5.33 1.12 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 2.71 112.73 N/A 13.31 0.61 5.74 0.15 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 38 ps� THE (� BOGDAHN `� GROUP Private Equity Fund Overview Crescent Direct Lending Fund As of December 31, 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 $1,600,000.0 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 $2,000,000.0 Capital Invested: $1,365,069 Management Fees: $467 Expenses: $34,826 $1,600,000.0 Interest: - Total Contributions: $1,365,069 $1,200,000.0 Remaining Capital Commitment: $1,077,048 Total Distributions: $453,892 $800,000.0 Market Value: $942,872 Inception Date: 10/14/2014 $400,000.0 Inception IRR: 3.7 TVPI: 1.0 $0.0 ($400,000.0) 10/14 1/15 4/15 7/15 Net Asset Value Distribution Contributions 39 10/15 am THE. {� BOGDAHN \ GROUP. Total Fund Policy Allocation Mandate Jan -1976 S &P 500 Index Barclays Aggregate Index MSCI EAFE Index Oct -2003 S &P 500 Index Barclays Aggregate Index MSCI EAFE Index Sep -2006 S &P 500 Index Barclays Intermediate Aggregate Index Oct -2009 Russell 3000 Index Barclays Intermediate Aggregate Index MSCI EAFE Index Barclays U.S. Treasury: U.S. TIPS Index NCREIF Property Index Oct -2010 Russell 3000 Index Barclays Intermediate Aggregate Index MSCI EAFE Index Barclays U.S. Treasury: U.S. TIPS Index NCREIF Fund Index -Open End Diversified Core (EVE Vanguard Total Stock Market Policy Allocation Mandate Jun -2003 MSCI US Broad Market Index Feb -2013 CRSP U.S. Total Market TR Index Benchmark Historical Hybrid Compositions Total Fund As of December 31, 2015 Total Equity Policy ht ( %) Allocation Mandate Weight ( %) THE 40 `BOGDAHN � GROUP Jan -1970 65.00 S &P 500 Index 90.00 30.00 MSCI EAFE Index 10.00 5.00 Oct -2003 S &P 500 Index 85.00 60.00 MSCI EAFE Index 15.00 30.00 10.00 S &P 500 Index 100.00 60.00 Oct -2009 40.00 Russell 3000 Index 77.00 MSCI EAFE Index 23.00 50.00 Total Domestic Equity Policy 25.00 Allocation Mandate Weight ( %) 15.00 Jan -1926 5.00 S &P 500 Index 100.00 5.00 Oct -2009 Russell 3000 Index 100.00 50.00 20.00 15.00 Total Fixed Income Policy 5.00 Allocation Mandate Weight ( %) 10.00 Nov -2000 Barclays Aggregate Index 100.00 Sep -2006 Barclays Intermediate Aggregate Index 100.00 sight ( %) American Realty Policy 100.00 Allocation Mandate Weight ( %) Oct -2007 100.00 NCREIF Property Index 100.00 Oct -2010 NCREIF Fund Index -Open End Diversified Core (EVE 100.00 THE 40 `BOGDAHN � GROUP Compliance Checklist Total Fund Winter Springs GE As of December 31, 2015 Total Fund Compliance: Yes No NIA 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total foreign equity returns meet or exceed the benchmark over the trailing three and five year periods. 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. 4. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. 5. The total equity allocation was less than 75% of the total plan assets at market. 6. Total foreign equity was less than 25% of the total plan assets at cost. Fixed Income Compliance: 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. 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. Vanguard NIA 21 RBC Global Yes No NIA Templeton American RE Yes No NIA Yes No NIA Gaillard Yes No NIA TIPS Yes No NIA Yes No NIA Yes No NIA VG Short BD Intercontinental Yes No NIA Yes No NIA Yes No NIA Winter Springs General Employees General Plan and Trust Fee Analysis As of December 31, 2015 Receipt & Disbursement 1,069,455 - Total Fund 0.36 39,097,487 142,482 42 ps� THE (� BOGDAHN `� GROUP Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 18,729,194 7,492 0.04 % of Assets Total Domestic Equity 0.04 18,729,194 7,492 RBC Global (Voyageur) 0.95 5,401,598 51,315 0.95 %of Assets Total International Equity 0.95 5,401,598 51,315 Galliard Core Fixed Income 0.25 4,722,477 11,806 0.25 % of Assets Galliard TIPS 0.15 1,166,900 1,750 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,359,069 1,631 0.12 % of Assets Total Domestic Fixed Income 0.21 7,248,447 15,187 Templeton Global Bond Fund (FBNRX) 0.51 1,187,481 6,056 0.51 % of Assets Total Global Fixed Income 0.51 1,187,481 6,056 Crescent Direct Lending Fund 1.35 942,872 12,729 1.35 % of Assets Total Other Fixed Income 1.35 942,872 12,729 Intercontinental 1.10 2,548,232 28,031 1.10 % of Assets American Core Realty Fund 1.10 1,970,208 21,672 1.10 % of Assets Total Real Estate 1.10 4,518,440 49,703 Receipt & Disbursement 1,069,455 - Total Fund 0.36 39,097,487 142,482 42 ps� THE (� BOGDAHN `� GROUP Disclosures Total Fund As of December 31, 2015 Disclosures Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. THE. 43 {� BOGDAHN \ GROUP. Performance Measurement 863 - 904 -0856 Donna S @ bogda h ngrou p. com 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 (r BOGDAHN ♦~� GROUP. Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non - systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. R- Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R- Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk - adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk - adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. 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® simplifiynrg your investment mid fidireiary deeisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Cleveland I Detroit I Milwaukee I Pittsburgh I Tulsa