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2016 05 10 Regular 500 Quarterly Investment Performance Review
BOARD OF TRUSTEES AGENDA ITEM ITEM 500 May 10, 2016 Regular Meeting REQUEST: Informational Consent Public Hearings Regular I X The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From The Bogdahn Group The Second Quarter Investment Return Report And To Enter Into Discussion. ATTACHMENT(S): A. Second Quarter Investment Return Report (48 Pages) WWW.BOGDAHNGROUP.COM Winter Springs General Employees' General Plan and Trust Investment Performance Review 1st Quarter 2016 Attachment A THE BOGDAHN GROUP© ``d siniplifj,hil your investment and fiduciay decisions 1st Quarter 2016 Market Environment THE: BOGDAHN GROUP. • The 1st quarter of 2016 proved volatile as broad equity markets declined significantly through the first half of the period due to global economic growth concerns, low and falling energy prices, and the prospect of rising interest rates in the U.S. At its lowest point on February 11, 2016, the S &P 500 had fallen by - 10.3 %. However, equity prices recovered through the second half of the quarter as investors reacted to improving economic data, a recovery in commodity prices, and various central bank announcements of continued monetary policy easing. As a result, the S &P 500 appreciated 13.0% through the end of March and finished the quarter with a return of 1.3 %. ■ Each of the U.S. stock market indices we track followed a similar pattern to the S &P 500 and were modestly positive through the 1st quarter with the exception of the Russell 2000, which returned -1.5% for the period. For the 1- year period, domestic large cap stock indices were the best performers, with the S &P 500 and Russell 1000 returning 1.8% and 0.5 %, respectively, while domestic small- ( -9.8 %) and mid - capitalization (4.0 %) indices posted negative results for the period. In U.S. dollar (USD) terms, the MSCI Emerging Market (EM) Index (net) surged in the back half of the period, returning a solid 5.7% for the quarter. Developed international markets did not fare as well with the MSCI EAFE Index (net) finishing the quarter with a return of -3.0 %. Both international benchmarks were weak over the 1 -year period with the MSCI EAFE Index returning -8.3% and the MSCI EM Index returning - 12.0 %. ■ The U.S. Treasury yield curve flattened throughout the 1st quarter. The drop in yields was primarily caused by U.S. Federal Reserve (Fed) indications they would likely be slowing their expected pace of future interest rate increases, as well as an increased demand for safe haven assets, as the volatility in the equity markets pushed investors away from risk assets. As a result, U.S. fixed income markets were positive across maturities and qualities for the period. The broad market Barclays U.S. Aggregate Index returned a solid 3.0% during the quarter. This broad market performance was led by investment grade corporates which benefitted from their higher duration as wells as interest rate spreads that declined significantly in the second half of the quarter. U.S. Treasury Inflation Protected Securities (TIPS) returned 4.5% for the quarter and were aided by higher inflation expectations (lower TIPS yields) and increased commodity prices. Global fixed income indices outperformed their U.S. counterparts in USD terms with a tailwind from both falling interest rates and a weakening USD. 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 The Market Environment Major Market Index Performance As of March 31, 2016 Quarter Performance -0.4% -3.0% 5.7% 1.3 °0 1.0% 1.2% 2.2% 3.0% 3.1% 4.5% 2.0% 1 4.0% 0.1% -4.0% -2.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts -12.0% 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 0.0% 2.0% 4.0% 6.0% -9.2 -8.3% 1.8% -0.3% 0.5% -4.0% -9.8% 2.0% 2.4% 1.5% 2.4% 0.9% 0.1 -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% T Hk: Source: Investment Metrics 2 BOGDAHN GROUP. ■ U.S. macroeconomic data fueled domestic equity returns for the 1st quarter. Early on, concerns about U.S. GDP growth, growing initial jobless claims, weakness in U.S. manufacturing, low oil prices, and the potential for a steady pattern of interest rate hikes resulted in considerable downside momentum for U.S. equity indices. However, as the quarter progressed, employment and income data appeared stronger, moving to a post- recession low, and regional manufacturing surveys showed signs of improvement. In addition, oil prices rebounded from a low of $26 /barrel in February to $38 /barrel at the end of March, and, despite signs of rising inflation, the Fed lowered its median projection for the number of interest rate increases in 2016 from four to only two. ■ Domestic equity index performance was largely positive during the 1st quarter. Value stocks outperformed growth stocks across the capitalization spectrum reversing a persistent trend of growth style outperformance. This shift was likely due to investors seeking the relative safety and stability of value stocks given the turbulent start to the year. Mid cap value stocks were the best performers across the value spectrum, returning 3.9% during the period. Small cap value (1.7 %) and large cap value (1.6 %) benchmarks posted similar results but were up less than half of the MidCap Index's performance. Within the growth spectrum, large cap stocks were the best performers (0.7 %), followed by mid cap stocks (0.6 %). The Russell 2000 Growth Index was the largest underperformer, returning -4.7% for the quarter, substantially trailing other indices. ■ Large cap stocks, as represented by the Russell 1000's return of 0.5 %, posted the only positive core index performance over the 1 -year period. However, style bias was mixed. The Russell 1000 Growth Index was the best performer, returning 2.5% for the year. In contrast, the growth indices for both mid (- 4.7%) and small (- 11.8 %) cap stocks posted negative results and underperformed their respective value benchmarks. ■ Despite their underperformance over the 1 -year period, 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 122% of its long -term average. In contrast, current P/E valuations for the growth indices fall between 90% and 95% of their historical long -term averages. Source: Investment Metrics 3 The Market Environment Domestic Equity Style Index Performance As of March 31, 2016 Quarter 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 -4.7% -1.5% 1.6% 1.0% 0.3% ELLJ 1.6% 1.2% ' 0.7% 3.9% 2.2% 1 0.6% -6.0% -4.0% -2.0% 0.0% 1 -Year Performance - Russell Style Series 3000 Value -2.1% 3000 Index -0.3% 3000 Growth 1000 Value 1.5% C 1000 Index 1000 Growth MidCap Value -3.4% C MidCap Index -4.0% F MidCap Growth -4.7% 2000 Value -7.7% 20001ndex -9.8% 2000 Growth - 11.8% 1.7% 2.0% 4.0% 13% 0.5% 2.5% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% THE. r BOGDAHN GROUP. • Large cap sector performance was generally positive for the 1st quarter with eight of the ten economic sectors within the Russell 1000 Index posting gains. The Health Care and Financials sectors were the only laggards returning -6.1% and -4.3% respectively. Health Care losses were led by the struggling biotech industry as stock prices reacted to increased political discussion surrounding drug price reform. An increased likelihood of low interest rates in the near -term hurt the earnings outlook for Financials. The strongest performing sectors for the quarter were the relatively defensive Utilities (15.7 %), Telecom Services (15.2 %) and Consumer Staples (5.5 %) sectors. These sectors benefitted from their lower perceived risk and higher dividend yields as investors sought shelter from the quarter's early volatility. Over the 1 -year period, six of ten economic sectors in the large cap index had positive performance, with the defensive sectors, largely due to performance in the 1st quarter, posting the strongest returns. On the negative side, the oil price driven Energy sector was the worst performer by a sizable margin returning - 17.9% for the period. Health Care (- 6.4 %), Financials (4.0 %), and Materials ( -5.6 %) were also negative for the 1 -year period. • Small cap sector returns were, by and large, worse than corresponding large cap sector returns. Similar to large cap sectors, small cap sector performance was largely positive for the quarter. However, in contrast to the large cap benchmark's balanced sector results, only the small cap index's two most defensive sectors, Utilities (10.0 %) and Telecom Services (6.1 %), managed to post positive returns over the 1 -year period. Much like the Russell 1000, the Energy sector posted the Russell 2000's weakest 1 -year sector performance, returning - 44.0 %. Health Care (- 20.4 %), Materials (- 19.5 %), Consumer Discretionary (- 12.8 %), and Industrials (- 11.3 %) also posted double -digit losses for the period. ■ Using the S &P 500 as a proxy, trailing P/E ratios for six GICS sectors were below their 20 -year averages at quarter -end. The Telecom Services and Financials sectors were trading at the largest discount to their long -term average P/E ratios. Conversely, Energy and Utilities sector valuations were the most extended relative to their historical P/E ratios. Consumer Disc (13.6 %) Consumer Staples (9.6 %) Energy (6.3 %) Financials (16.9 %) Health Care (14.3 %) Industrials (10.5 %) Info Technology (20.0 %) Materials (3.0 %) Telecom Services (2.5 %) Utilities (3.2 %) The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2016 Russell 1000 1 ❑Quarter 01 -Year -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell 2000 1 ❑Quarter 01 -Year Consumer Disc (13.9 %) Consumer Staples (3.5 %) Energy (2.5 %) Financials (26.0 %) Health Care (14.8 %) Industrials (12.4 %) Info Technology (18.1 %) Materials (3.6 %) Telecom Services (0.9 %) Utilities (4.1 %) 2.3% -12.8% 3.2% -0.1% -8.2% -44.0% 0.3% - 17.4% 0.4 % 4.5% -1�.3% -1.6% -3.8% 4.9 19.5% 6.7% 6.1 % 12.0% EEEY110.0% -46.0% -36.0% -26.0% -16.0% -6.0% 4.0% 14.0% �PSN THIE 7� Source: Morningstar Direct 4 [ BOGDAHN `� GROUP 1.8% 4.8% 5.5% 10.1% 3.6% - 17.9% -4.3% -4.0% -6.1 % 6.4% 4.9% 1.6% 1.8% 6.0% 4.7% -5.6% 15.2% 16.9% 15.7% 15.2% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell 2000 1 ❑Quarter 01 -Year Consumer Disc (13.9 %) Consumer Staples (3.5 %) Energy (2.5 %) Financials (26.0 %) Health Care (14.8 %) Industrials (12.4 %) Info Technology (18.1 %) Materials (3.6 %) Telecom Services (0.9 %) Utilities (4.1 %) 2.3% -12.8% 3.2% -0.1% -8.2% -44.0% 0.3% - 17.4% 0.4 % 4.5% -1�.3% -1.6% -3.8% 4.9 19.5% 6.7% 6.1 % 12.0% EEEY110.0% -46.0% -36.0% -26.0% -16.0% -6.0% 4.0% 14.0% �PSN THIE 7� Source: Morningstar Direct 4 [ BOGDAHN `� GROUP Russell 1000 Apple Inc Top 10 Weighted Weight 3.08% Stocks 1-Qtr Return 4.1% 1-Year Return -10.8% Sector Information Technology Microsoft Corp 2.19% 0.3% 39.5% Information Technology Exxon Mobil Corporation 1.71% 8.2% 1.9% Energy Johnson & Johnson 1.47% 6.1% 10.8% Health Care General Electric Co 1.47% 2.9% 32.4% Industrials Berkshire Hathaway Inc B 1.29% 7.5% -1.7% Financials Facebook Inc A 1.21% 9.0% 38.8% Information Technology AT &T Inc 1.17% 15.4% 26.9% Telecommunication Services Amazon.com Inc 1.11% - 12.2% 59.5% Consumer Discretionary Wells Fargo & Co 1.10% - 10.3% -8.6% Financials ITop US rrr United States Steel Corp r 0.01% Quarter) e 102.5% - 33.2% Materials Cliffs Natural Resources Inc 0.00% 89.9% - 37.6% Materials 3D Systems Corp 0.01% 78.0% - 43.6% Information Technology JC Penney Co Inc 0.02% 66.1% 31.5% Consumer Discretionary SPX Corp 0.00% 61.0% - 28.3% Industrials Freeport- McMoRan Inc 0.06% 52.7% -44.5% Materials Newmont Mining Corp 0.07% 47.9% 23.0% Materials Allegheny Technologies Inc 0.01% 45.6% - 44.2% Materials Urban Outfitters Inc 0.01% 45.5% -27.5% Consumer Discretionary Kate Spade & Co 0.02% 43.6% - 23.6% Consumer Discretionary - rr e SunEdison Inc 0.00% 89.4% 97.7% Information Technology Ultra Petroleum Corp 0.00% 80.1% 96.8% Energy Sand Ridge Energy Inc 0.00% 71.9% 96.8% Energy Peabody Energy Corp 0.00% -69.8% -96.9% Energy Ocwen Financial Corp 0.00% - 64.6% - 70.1% Financials Puma Biotechnology Inc 0.00% -62.5% - 87.6% Health Care Alkermes PLC 0.02% - 56.9% - 43.9% Health Care California Resources Corp 0.00% -55.8% - 86.4% Energy Endo International PLC 0.03% -54.0% - 68.6% Health Care SolarCity Corp 0.01% -51.8% - 52.1% Industrials The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2016 �PSN THIE Source: Morningstar Direct 5 [ BOGDAHN `� GROUP STERIS PLC 0.37% -5.3% 2.6% Health Care CubeSmart 0.34% 9.4% 41.5% Financials West Pharmaceutical Services Inc 0.31% 15.4% 16.1% Health Care Treehouse Foods Inc 0.30% 10.6% 2.0% Consumer Staples Vail Resorts Inc 0.30% 5.1% 32.3% Consumer Discretionary Piedmont Natural Gas Co Inc 0.29% 5.5% 66.9% Utilities MarketAxess Holdings Inc 0.29% 12.1% 51.9% Financials Sovran Self Storage Inc 0.28% 10.8% 29.9% 1 Financials FHigshwoods Properties Inc 0.28% 10.8% 8.7% Financials ey's General Stores Inc 0.27% -5.7% 26.9% Consumer Staples Top r Quarter) Russell 2000 Vantage Drilling Co 0.00% 551.4% - 94.7% Energy American Eagle Energy Corp 0.00% 345.5% - 97.3% Energy Walter Energy Inc 0.00% 177.7% -95.0% Materials Ultrapetrol Bahamas Ltd 0.00% 157.1% - 81.4% Industrials Coeur Mining Inc 0.05% 126.6% 19.3% Materials Bio -Path Holdings Inc 0.00% 107.2% 43.9% Health Care EnerNOC Inc 0.01% 94.3% - 34.4% Information Technology Cliffs Natural Resources Inc 0.03% 89.9% - 37.6% Materials SunCoke Energy Inc 0.03% 87.3% - 54.1% Materials Nanoviricides Inc 0.00% 85.6% -2.7% Health Care Quarter) RCS Capital Corp Class A 0.00% -96.5% - 99.9% Financials Horsehead Holding Corp 0.00% - 92.7% -98.8% Materials Eagle Bulk Shipping Inc 0.00% -89.8% - 95.1% Industrials 6D Global Technologies Inc 0.00% - 89.7% -96.2% Information Technology Eleven Biotherapeutics Inc 0.00% - 89.4% -96.4% Health Care Speed Commerce Inc 0.00% - 88.9% - 98.9% Information Technology CHC Group Ltd 0.00% -85.0% - 97.6% Energy Noranda Aluminum Holding Corp 0.00% -82.8% - 99.7% Materials Midstates Petroleum Co Inc 0.00% - 82.4% -95.8% Energy Carbylan Therapeutics Inc 0.00% - 82.2% N/A Health Care �PSN THIE Source: Morningstar Direct 5 [ BOGDAHN `� GROUP ■ Like their domestic counterparts, the 1st quarter of the year was very volatile for international stocks. The beginning of the quarter was difficult across markets as investors struggled with uncertainty surrounding central bank policies, global economic growth, and commodity prices. As is usual, this uncertainty caused investors to flee risk assets, putting downward pressure on equity prices. Markets began to recover in the latter half of the quarter as the Bank of Japan (BoJ), People's Bank of China (PBoC), and European Central Bank (ECB) were just a few of those announcing new measures aimed at stimulating their economies. Developed markets struggled throughout the quarter while emerging markets managed to reverse their persistent trend of underperformance as commodity prices rebounded and the USD weakened. The weaker USD provided a boost to local currency returns across major international indices. For the 1 -year period, USD performance for each of the international indices we track was negative. Developed markets returned a weak -8.3% for the 1 -year period, but emerging markets fared even worse with a return of - 12.0 %. ■ Despite relief from the ECB's announcement of additional monetary policy easing, developed markets in Europe were negative for the quarter. Weak GDP growth, below target inflation, and security concerns stemming from the March terrorist attacks in Brussels all impacted returns. Stress was compounded when the U.K. called for a referendum to review the country's continued membership in the European economic bloc. Within the emerging and developed market indices, Greece and Italy were the worst performers posting USD returns of -12.2% and - 11.7 %, respectively, for the quarter. ■ Japanese equities, the developed market index's largest component, struggled for the quarter posting a return of -6.5% in USD and -12.5% in local currency. Investors weighed ongoing global macroeconomic uncertainty and began to lose faith in the ability of "Abenomics" to lift the country out of its growth malaise. Japanese market returns were also affected by the BoJ's unexpected move to a negative interest rate policy at the end of January, making it the sixth central bank to do so, in an attempt to stimulate economic growth and place upward pressure on inflation. Investors in Chinese markets had an exceptionally difficult start to the year as a new circuit breaking mechanism forced an early market close twice in January. The recent round of market turbulence stemmed from fears of the impending expiration of selling restrictions on major shareholders, which were later extended, and a weakening Chinese yuan. The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2016 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) Quarter Performance I ❑USD ❑Local Currency -4.1% -2.0% -5.8% -3.0% -6.5% -2.6% -5.0% -3.8% -9.3% 5.7% 2.7% 12.9% 7.5% rO.3% 1.9% 19.1 % 11.8% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 1 -Year Performance I ■USD ❑Local Currency AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) -9.2% - 10.3% -8.4% -11.0% -8.3% -11. - 8.5 °ro - 10.7% - 8.o °ro - 12.2% -12.0% -7.7% -11.5 0 0.9% - 12.6% - 10.6% -9.2% o.s °ro -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% THE: Source: MSCI Global Index Monitor (Returns are Net) 6 B OGDAH N GROUP. MSCI-EAFE Sector Weight Quarter Return 1 -Year Return Consumer Discretionary 13.2% -4.3% -10.0% Consumer Staples 12.7% 3.3% 7.3% Energy 4.7% 4.7% - 10.4% Financials 23.8% -9.6% - 16.3% Health Care 11.5% -6.5% -8.0% Industrials 13.3% 1.7% -3.7% Information Technology 5.3% -4.1% -6.5% Materials 6.7% 2.6% - 17.4% Telecommunication Services 5.1% 0.3% 1.3% Utilities Total 3.9% 100.0% 0.4% -0.1% -0.2% Sweden 2.9% 2.1% Consumer Discretionary 12.0% e -2.6% -10.1% Consumer Staples 11.2% 4.1% 5.2% Energy 6.4% 9.8% - 10.6% Financials 25.8% -5.0% - 14.7% Health Care 8.8% -7.5% - 11.3% Industrials 11.5% 2.3% -5.7% Information Technology 8.5% 0.7% -8.0% Materials 6.9% 7.2% - 15.4% Telecommunication Services 5.3% 2.5% -3.6% Utilities 3.6% 2.4% -2.6% Netherlands 1DIPTA 2.2% 3.4% Consumer Discretionary 9.8% 3.1% -12.1% Consumer Staples 8.3% 6.3% -5.3% Energy 7.7% 14.9% -7.0% Financials 27.4% 3.4% - 15.7% Health Care 2.7% -0.4% - 11.6% Industrials 6.8% 3.1% - 15.3% Information Technology 20.7% 4.9% -10.0% Materials 6.6% 15.4% -7.6% Telecommunication Services 6.9% 6.6% - 15.4% Utilities Total 3.2% 100 .0% 9.2% - 10.7% r Netherlands 3.1% 2.2% 3.4% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2016 Country ErWeight Japan 22.5% Weight 16.1% Return 11WReturn -6.5% -7.1% United Kingdom 19.3% 13.8% -2.3% -8.9% France 10.0% 7.2% 0.1% -4.5% Germany 9.2% 6.6% -2.5% - 11.7% Switzerland 9.1% 6.5% -5.5% -9.4% Australia 7.2% 5.1% 2.1% -10.8% Hong Kong 3.3% 2.4% -0.6% -6.7% Spain 3.2% 2.3% -4.1% -18.6% Netherlands 3.1% 2.2% 3.4% -0.2% Sweden 2.9% 2.1% -0.2% -9.9% Italy 2.2% 1.6% -11.7% -15.4% Denmark 2.0% 1.4% -1.0% 5.5% Belgium 1.5% 1.0% -2.4% 3.2% Singapore 1.4% 1.0% 5.1% - 11.9% Finland 1.0% 0.7% -5.2% -5.6% Israel 0.7% 0.5% -10.2% -9.0% Norway 0.6% 0.4% 1.7% -15.5% Ireland 0.5% 0.4% -4.2% 7.8% Austria 0.2% 0.1% -0.5% -0.2% New Zealand 0.2% 0.1% 11.6% 6.5% Portugal 0.2% 0.1% 3.2% -2.9% Canada Total D- 6.6% 11.3% r - 10.2% China 5.2% -4.8% -18.8% Korea 3.4% 5.1% -5.9% Taiwan 2.7% 7.7% -8.5% India 1.8% -2.5% -13.2% South Africa 1.6% 13.8% -17.8% Brazil 1.4% 28.5% -11.8% Mexico 1.0% 8.5% -5.3% Russia 0.8% 15.8% 1.7% Malaysia 0.8% 13.2% -8.0% Indonesia 0.6% 11.2% -12.5% Thailand 0.5% 16.9% - 12.7% Turkey 0.3% 21.6% -1.6% Philippines 0.3% 7.0% -9.3% Poland 0.3% 13.9% - 12.4% Chile 0.3% 12.9% -6.9% Qatar 0.2% 3.8% -13.7% United Arab Emirates 0.2% 8.6% -5.9% Colombia 0.1% 22.5% - 11.9% Peru 0.1% 27.0% -7.7% Greece 0.1% - 12.2% -52.0% Hungary 0.1% 17.3% 40.2% Czech Republic 0.0% 5.1% -11.5% Egypt 0.0% -5.9% -29.1% r �PSN THE Source: MSCI Global Index Monitor (Returns are Net in USD) 7 BOGDAHN `� GROUP ■ Due to a steady downward move in interest rates during the 1st quarter, fixed income index performance was positive for the period. Fixed income indices benefitted from Federal Reserve Chair Janet Yellen's dovish comments in February and March, which implied uncertainty underlying the U.S. economic outlook would likely mitigate the pace of future interest rate hikes. This information resulted in a consensus expectation for two rate increases this year versus the prior expectation of four. This rate news, coupled with early quarter volatility in risk assets, fueled investor demand for defensive investments such as U.S. Treasuries. This series of events resulted in yields falling throughout the period, especially at the longer -end of the yield curve. This curve flattening benefited longer duration indices with the 7.3 year duration Barclays U.S. Corporate Investment Grade Index returning a solid 4.0% for the quarter. Over the 1 -year period, lower quality issues struggled, with Baa and high yield indices registering losses of -0.8% and -3.7 %, respectively, as investors preferred the relative safety of high credit quality issues. ■ The Barclays Aggregate benchmark, which is a broad representation of U.S. fixed income markets, posted a return of 3.0% for the quarter. As detailed above, higher duration sectors within the broad Aggregate index outperformed lower duration sectors with investment grade corporates (4.0 %) and Treasury securities (3.2 %) posting the largest gains. Hurt by its relatively low duration, the Barclays U.S. Mortgage Index returned a lower 2.0% for the quarter. While the sector components of the Aggregate benchmark also posted positive returns for the 1 -year period, Treasury and mortgage- backed issues were the strongest performing; each returning 2.4 %. The Barclays U.S. Corporate Investment Grade Index returned 0.9 %, negatively impacted by widening credit spreads throughout most of the period. ■ Due to higher average durations and credit spreads that declined in the second half of the quarter, lower credit quality investment grade securities outperformed higher quality issues during the 1st quarter. A and Baa rated securities returned 3.9% and 4.3 %, respectively, versus a 2.7% return for AAA issues. High yield bonds also had a strong quarter with the Barclays U.S. High Yield Index returning 3.4 %. As noted, high yield spreads rose dramatically in the first half of the quarter causing the index to trade down by as much as 5.0% through early February but quickly changed course as the quarter progressed to end the period lower than where they began 2016. Despite the strong quarter, the Barclays U.S. High Yield Index returned - 3.7% over the 1 -year period. Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of March 31, 2016 AAA (4.8) AA (6.1) A (7.4) Baa (7.4) U.S. High Yield (4.2) U.S. Treasury (6.1) U.S. Mortgage (3.1) U.S. Corporate IG (7.3) U.S. TIPS (4.8) Aggregate (5.5) Intermediate Agg (3.7) Global Agg x US (7.7) Multiverse (6.6) Quarter Performance 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% AAA (4.8) AA (6.1) A (7.4) Baa (7.4) U.S. High Yield (4.2) U.S. Treasury (6.1) U.S. Mortgage (3.1) U.S. Corporate IG (7.3) U.S. TIPS (4.8) Aggregate (5.5) Intermediate Agg (3.7) Global Agg x US (7.7) Multiverse (6.6) 1 -Year Performance 2.4% 2.4% 2.2% -0.8% -3.7% 2.4% 2.4% 0.9% 1.5% 2.0% 2.2% 6.7% 4.4% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% THIS [� BOGDAHN GROUP ■ U.S. TIPS finished the 1st quarter with a solid 4.5% return as inflation expectations rose as the USD weakened and commodity prices started to rebound. TIPS returns for the 1 -year period, while positive, were a more modest 1.5 %. ■ In USD terms, international fixed income indices posted the largest gains for the quarter and 1 -year period. Despite the relatively low interest rates in international markets, the Barclays Global Aggregate ex U.S. benchmark returned 8.3% for the quarter. The index benefitted from its higher duration, additional monetary policy easing and the weakening USD. Global bonds were also strong over the 1 -year period, posting a return of 6.7 %. ■ Many of the drivers of the index performance detailed in the bar graphs on the previous page is visible on a time series basis in the line graphs to the right. The 1-Year Trailing Market Rates' graph illustrates that the 10 -year Treasury (green line) fell over the quarter, providing a boost to bond performance. 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. When spreads widen (tighten), it is equivalent to an interest rate increase (decrease) on corporate bonds. After falling below 2.0% early in 2015, this spread rose throughout the remainder of the calendar year. There was considerable movement in this spread from the start of 2016, as it widened to near term highs, before falling through the second half of the quarter, ending the period only slightly lower than it began. The interest rate paid on 10 -year TIPS (orange line) has fallen since late last year as higher inflation expectations have increased demand for these securities. The bottom graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. While rates stayed relatively flat at the short -end of the curve, maturities beyond 3 -years saw yields fall to their lowest quarter -end levels in a year. ■ 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 in 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. The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2016 1 -Year Trailing Market Rates 3.50 Fed Funds Rate TED Spread 3 -Month Libor 3.00 BAA OAS 10yr Treasury 10yr TIPS 2.50 2.00 1.50 1.00 0.50 w■� - - _ —.+-- 1 Mar -15 Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve X6/30/2015 X9/30/2015 o 12/31/2015 o 3/31/2016 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 B FRED (Federal Reserve of St. Louis) 9 IJOGDAl 7� 1 N �� GROUP Asset Allocation By Segment as of December 31, 2016 : $3991009736 Allocation Allocation Asset Allocation Summary Total Fund As of March 31. 2016 Asset Allocation By Segment as of March 31, 2016 : $3996049383 Segments Market Value Allocation Segments Market Value Allocation _ Domestic Equity 18,729,194 47.9 _ Domestic Equity 19,799,027 50.0 m International Equity 5,401,598 13.8 m International Equity 5,363,250 13.5 • Domestic Fixed Income 7,239,783 18.5 ■ Domestic Fixed Income 7,123,726 18.0 • Global Fixed Income 1,187,481 3.0 ■ Global Fixed Income 1,178,212 3.0 • Other Fixed Income 942,872 2.4 ■ Other Fixed Income 1,205,527 3.0 7 Real Estate 4,494,984 11.5 7 Real Estate 4,542,034 11.5 Cash Equivalent 1,104,824 2.8 Cash Equivalent 392,607 1.0 THE 10 [� BOGDAHN \� GROUP. Allocation Asset Allocation By Manager as of December 31, 2015 : $3991009736 Market Value Allocation Allocation Asset Allocation Summary Total Fund As of March 31. 2016 Asset Allocation By Manager as of March 31, 2016 : $3996049383 Market Value Allocation Vanguard Total Stock Market (VITSX) 18,729,194 47.9 Vanguard Total Stock Market (VITSX) 19,799,027 50.0 RBC Global (Voyageur) 5,401,598 13.8 RBC Global (Voyageur) 5,363,250 13.5 d Galliard Core Fixed Income 4,722,477 12.1 1 Galliard Core Fixed Income 4,640,688 11.7 — Intercontinental 2,548,078 6.5 Intercontinental 2,573,029 6.5 ■ American Core Realty Fund 1,970,208 5.0 ■ American Core Realty Fund 1,992,671 5.0 1 Vanguard Short Term Bond Index (VSCSX) 1,359,069 3.5 ■ Vanguard Short Term Bond Index (VSCSX) 1,280,146 3.2 Templeton Global Bond Fund (FBNRX) 1,187,481 3.0 Galliard TIPS 1,209,173 3.1 Galliard TIPS 1,166,900 3.0 Crescent Direct Lending Fund 1,205,527 3.0 Receipt & Disbursement 1,072,858 2.7 Templeton Global Bond Fund (FBNRX) 1,178,212 3.0 Crescent Direct Lending Fund 942,872 2.4 Receipt & Disbursement 362,661 0.9 PSN TuiE 11 [ BOGDAHN `-'O* GROUP Asset Allocation vs. Target Allocation Total Domestic Equity Total International Equity Total Domestic Fixed Income Total Global Fixed Income -2.0% Total Real Estate Total Other Fixed Income -2.0% 5161WA 0.0% 1.5% Asset Allocation vs. Target Allocation Total Fund As of March 31, 2016 3.0% Receipt & Disbursement 0.9% -4.5% -3.6% -2.7% -1.8% -0.9% 0.0% 0.9% 1.8% 2.7% 3.6% 4.5% 5.4% Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation ( %) Target ( %) Total Domestic Equity 19,799,027 50.0 50.0 Total International Equity 5,363,250 13.5 15.0 Total Domestic Fixed Income 7,130,006 18.0 15.0 Total Global Fixed Income 1,178,212 3.0 5.0 Total Real Estate 4,565,700 11.5 10.0 Total Other Fixed Income 1,205,527 3.0 5.0 Receipt & Disbursement 362,661 0.9 0.0 Total Fund 39,604,383 100.0 100.0 T uk: 12 BOGDAHN GROUP. Historical Asset Allocation by Portfolio Total Equity Total Domestic Equity Vanguard Total Stock Market (VITSX) Total International Equity RBC Global (Voyageur) Total Fixed Income Total Domestic Fixed Income Galliard Core Fixed Income Galliard TIPS Vanguard Short Term Bond Index (VSCSX) Total Global Fixed Income Templeton Global Bond Fund (FBNRX) Total Other Fixed Income Crescent Direct Lending Fund Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Total Fund Portfolio Mar -2016 3.04 1,205,527 3.04 26,162,277 63.63 19,799,027 49.99 19,799,027 49.99 6,363,260 13.64 5,363,250 13.54 9,613,746 24.02 7,130,006 18.00 4,640,688 11.72 1,209,173 3.05 1.280.146 3.23 1,178,212 2.97 1,178,212 2.97 1,206,627 3.04 1,205,527 3.04 4,666,700 11.63 1,992,671 5.03 2,573,029 6.50 362,661 0.92 39,604,383 100.00 Dec -2016 2.60 22,792,387 61.00 24,130,792 61.71 18,729,194 47.90 18,729,194 47.90 6,401,698 13.81 5,401,598 13.81 9,378,800 23.99 7,248,447 18.64 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 4,618,286 11.66 1,970,208 5.04 2,548,078 6.52 1,072,868 2.74 39,100,736 100.00 13 Sep -2016 1,171,002 3.13 1.171.002 3.13 933,836 2.60 22,792,387 61.00 17,626,211 47.17 17,625,211 47.17 6,167,176 13.83 5,167,176 13.83 9,383,428 26.12 7,278,690 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 2.60 933,836 2.50 4,377,366 11.72 1,940,406 5.19 2,436,960 6.52 808,409 2.16 37,361,690 100.00 Asset Allocation Asset Allocation History By Portfolio As of March 31, 2016 Jun -2016 24,762,609 63.33 19,006,878 48.60 19,005,878 48.60 6,766,631 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 1,267,614 3.22 1,257,514 3.22 767,281 1.94 757,281 1.94 3,691,619 9.44 1,336,827 3.42 2,354,792 6.02 1,406,318 3.69 39,103,168 100.00 Mar -2016 24,646,342 63.63 18,989,619 49.03 18,989,619 49.03 6,666,723 14.60 5,656,723 14.60 9,839,871 26.40 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 3,689,236 9.27 1,307,320 3.38 2,281,916 5.89 668,824 1.70 38,734,273 100.00 _ [ Hk: BOGDAHN GROUP. Historical Asset Allocation by Segment 100.0 1 9NIM 80.0 1 70.0 1 60.0 0 0 50.0 0 a 40.0 30.0 1 20.0 1 HM 0.0 L 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 Domestic Equity International Equity Domestic Fixed Income Other Fixed Income Real Estate Cash Equivalent 14 Historical Asset Allocation by Segment Total Fund October 1, 2007 To March 31, 2016 -07� 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 Global Fixed Income PSN TuiE Q BOGDAHN � GROUP Plan Sponsor TF Asset Allocation Total Fund Portfolio Vs. All Public Plans -Total Fund As of March 31, 2016 68.0 60.0 52.0 44.0 36.0 0 0 28.0 0 a 20.0 O 12.0 O 4.0 O O O -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund Portfolio 49.99 (22) 13.54 (53) 18.00 (87) 2.97 (83) 3.04 (88) 11.53 (12) 0.92 (65) 5th Percentile 55.75 25.26 44.83 9.27 36.06 13.55 4.79 1 st Quartile 49.54 18.05 35.71 5.03 19.89 9.86 2.42 Median 44.32 13.74 30.22 4.67 11.82 6.21 1.40 3rd Quartile 36.94 11.28 22.36 3.87 5.13 5.26 0.63 95th Percentile 20.69 7.30 13.57 0.24 1.29 2.76 0.06 THk: 15 BOGDAHN GROUP. Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31, 2016 Financial Reconciliation Quarter to Date In BOGDAHN GROUP. Market Value Net Management Contributions Distributions Other Income Apprec./ Market Value 01/01/2016 Transfers Fees Expenses Deprec. 03/31/2016 Total Equity 24,130,792 812,950 - 12,950 -889 131,954 100,420 25,162,277 Total Domestic Equity 18,729,194 800,000 - - 90,732 179,101 19,799,027 Vanguard Total Stock Market (VITSX) 18,729,194 800,000 - - 90,732 179,101 19,799,027 Total International Equity 5,401,598 12,950 - 12,950 -889 41,221 - 78,681 5,363,250 RBC Global (Voyageur) 5,401,598 12,950 - 12,950 -889 41,221 - 78,681 5,363,250 Total Fixed Income 9,378,800 -44,381 -3,387 -147 16,874 165,986 9,513,745 Total Domestic Fixed Income 7,248,447 - 296,613 -3,387 -147 6,452 175,255 7,130,006 Galliard Core Fixed Income 4,722,477 - 196,613 -3,387 - - 118,210 4,640,688 Galliard TIPS 1,166,900 - - -147 2,203 40,216 1,209,173 Vanguard Short Term Bond Index (VSCSX) 1,359,069 - 100,000 - 4,248 16,828 1,280,146 Total Global Fixed Income 1,187,481 - 10,423 10,423 -9,269 1,178,212 Templeton Global Bond Fund (FBNRX) 1,187,481 - 10,423 10,423 -9,269 1,178,212 Total Other Fixed Income 942,872 262,655 - - 1,205,527 Crescent Direct Lending Fund 942,872 262,655 - - - 1,205,527 Total Real Estate 4,518,286 - 23,302 -9,860 51,792 28,783 4,565,700 American Core Realty Fund 1,970,208 - 23,302 -5,502 29,167 22,099 1,992,671 Intercontinental 2,548,078 - - - -4,358 - 22,625 6,684 2,573,029 Receipt & Disbursement 1,072,858 - 745,267 647,285 - 595,906 - - 16,432 123 - 362,661 Total Fund Portfolio 39,100,736 - 647,285 - 595,906 - 26,197 - 17,468 200,743 295,189 39,604,383 In BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2015 To March 31, 2016 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2015 Net Transfers Management Contributions Distributions Fees Other Expenses Income Apprec./ Deprec. Market Value 03/31/2016 Total Equity 22,792,387 825,916 - 25,916 -1,843 256,582 1,315,151 25,162,277 Total Domestic Equity 17,625,211 800,000 - - 195,575 1,178,242 19,799,027 Vanguard Total Stock Market (VITSX) 17,625,211 800,000 - - 195,575 1,178,242 19,799,027 Total International Equity 5,167,176 25,916 - 25,916 -1,843 61,008 136,909 5,363,250 RBC Global (Voyageur) 5,167,176 25,916 - 25,916 -1,843 61,008 136,909 5,363,250 Total Fixed Income 9,383,428 - 50,905 -6,790 -293 45,165 143,140 9,513,745 Total Domestic Fixed Income 7,278,590 - 296,613 -6,790 -293 19,182 135,931 7,130,006 Galliard Core Fixed Income 4,739,662 - 196,613 -6,790 - - 104,429 4,640,688 Galliard TIPS 1,177,381 - - -293 4,153 27,932 1,209,173 Vanguard Short Term Bond Index (VSCSX) 1,361,547 - 100,000 - 15,029 3,570 1,280,146 Total Global Fixed Income 1,171,002 - 20,907 20,907 7,209 1,178,212 Templeton Global Bond Fund (FBNRX) 1,171,002 - 20,907 20,907 7,209 1,178,212 Total Other Fixed Income 933,836 266,615 5,076 - 1,205,527 Crescent Direct Lending Fund 933,836 266,615 5,076 1,205,527 Total Real Estate 4,377,366 -46,199 - 46,544 106,403 174,674 4,565,700 American Core Realty Fund 1,940,406 - 46,199 - 10,945 57,913 51,496 1,992,671 Intercontinental 2,436,960 - - - 35,599 - 48,490 123,178 2,573,029 Receipt & Disbursement 808,409 - 728,813 1,504,743 - 1,188,423 - - 33,399 143 - 362,661 Total Fund Portfolio 37,361,590 - 1,504,743 - 1,188,423 - 79,250 - 35,535 408,293 1,632,965 39,604,383 17 _ [ uk: BOGDAHN GROUP. Comparative Performance Trailling Returns Comparative Performance Trailing Returns Total Fund As of March 31, 2016 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 1.20 5.26 5.94 0.78 11/01/2000 7 •., Total Fund Policy 0.99 5.08 5.36 0.62 (18) 7.78 5.66 8.24 (7) Total Fund (New Mgrs) (Net) 1.20 5.26 0.78 7.88 4.48 7.69 Total Fund Policy 0.99 5.08 11/01/2000 0.62 7.78 8.24 Total Fund (Gross) 1.27 (30) 5.47 (5) 1.13 (2) 8.23 (3) 8.22 (3) Total Fund Policy 0.99 (46) 5.08 (11) 0.62 (8) 7.78 (8) 8.24 (3) All Public Plans -Total Fund Median 0.91 (67) 3.82 5.03 -1.56 (67) 6.16 5.37 6.38 Total Fund (New Mgrs) (Gross) 1.27 (30) 5.47 (5) 1.13 (2) 8.23 (3) 8.22 (3) Total Fund Policy 0.99 (46) 5.08 (11) 0.62 (8) 7.78 (8) 8.24 (3) All Public Plans -Total Fund Median 0.91 3.82 -1.56 6.16 6.38 Total Equity 0.73 6.64 -1.37 9.85 1 9.28 Total Equity Policy 0.07 6.00 -2.09 9.19 9.12 Total Domestic Equity 1.14 (36) 7.47 (36) -0.25 (52) 11.12 (62) 10.18 (73) Total Domestic Equity Policy 0.97 (40) 7.30 (39) -0.34 (53) 11.15 (61) 11.01 (59) IM U.S. Large Cap Core Equity (SA +CF) Median 0.61 6.50 -0.20 11.67 11.35 Total International Equity -0.69 (36) 3.83 (28) -5.13 (32) 6.22 (11) 6.65 (9) MSCI EAFE Index -2.88 (73) 1.73 (63) -7.87 (58) 2.68 (54) 2.76 (52) IM International Large Cap Value Equity (SA +CF) Median -1.99 2.62 -7.11 2.90 2.82 Total Fixed Income 1.97 2.03 ' 1.53 3.34 Total Fixed Policy 2.31 1.79 2.20 2.14 3.11 Total Domestic Fixed Income 2.53 (17) 2.16 (97) 2.34 (22) 1.65 (100) 3.18 (100) Total Domestic Fixed Policy 2.31 (18) 1.79 (98) 2.20 (23) 2.14 (100) 3.11 (100) IM U.S. Large Cap Core Equity (SA +CF) Median 0.61 6.50 -0.20 11.67 11.35 Total Global Fixed Income 0.11 (100) 2.41 (59) -4.04 (99) -0.37 (70) N/A Total Global Fixed Income Policy 7.09 (4) 5.78 (5) 5.92 (1) 0.49 (45) N/A IM Global Fixed Income (MF) Median 3.15 2.71 0.49 0.24 1.84 Total Real Estate 1.79 (88) 6.48 (37) 14.09 (40) 14.17 (38) 14.1 NCREIF Fund Index -ODCE (VVV) 2.21 (54) 5.62 (59) 13.70 (44) 13.64 (53) 13.26 (65) IM U.S. Open End Private Real Estate (SA +CF) Median 2.41 5.76 13.40 13.79 13.74 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent presented on IRR page. 18 5.29 11/01/2000 4.80 E 10/01/2007 5.94 (18) 11/01/2000 5.03 •., 5.38 5.36 (18) 10/01/2007 5.66 (7) 4.69 5.79 01/01/2001 4.48 5.81 (38) 11/01/2000 4.39 (92) 5.37 5.67 (58) 11/01/2000 3.65 (99) 5.93 �- 11/01/2000 5.03 5.04 (67) 11/01/2000 5.03 (67) 5.37 3.60 (18) 12/01/2011 0.26 (82) 1.91 _ (34) 10/01/2007 4.52 1• 4.77 TFir [� BOGDAHN `� GROUP Comparative Performance Trailing Returns Total Fund As of March 31, 2016 QTR FYTD 1 YR 3 YR 6 YR Inception Inception Date Vanguard Total Stock Market (VITSX) 0.95 (38) 7.27 (19) -0.44 (18) 11.11 (24) N/A 12.18 (26) 03/01/2013 Vanguard Total Stock Market Index Hybrid 0.95 (38) 7.25 (20) -0.45 (18) 11.14 (23) 11.02 (16) 12.21 (25) IM U.S. Multi -Cap Core Equity (MF) Median 0.34 5.04 -3.48 9.70 9.36 10.82 RBC Global (Voyageur) -0.69 (36) 3.83 (28) -5.13 (32) 6.22 (11) 6.65 (9) 2.17 (18) 11/01/2007 MSCI EAFE Index -2.88 (73) 1.73 (63) -7.87 (58) 2.68 (54) 2.76 (52) -1.05 (74) IM International Large Cap Value Equity (SA +CF) Median -1.99 2.62 -7.11 2.90 2.82 -0.31 Galliard Core Fixed Income 2.54 (25) 2.24 (13) 2.65 (13) 2.33 (28) 3.58 (28) 4.36 (68) 10/01/2007 Barclays Intermediate Aggregate Index 2.31 (56) 1.79 (62) 2.20 (46) 2.14 (43) 3.11 (68) 4.28 (77) IM U.S. Intermediate Duration (SA +CF) Median 2.34 1.87 2.13 2.09 3.30 4.55 Galliard TIPS 3.64 (67) 2.73 (86) 1.66 (34) -0.60 (26) 1.88 (87) 3.57 (91) 10/01/2007 Barclays U.S. TIPS 1 -10 Year 3.60 (74) 2.88 (75) 1.84 (25) -0.72 (57) 1.88 (87) 3.64 (90) IM U.S. TIPS (SA +CF) Median 4.24 3.63 1.56 -0.69 2.97 4.44 Vanguard Short Term Bond Index (VSCSX) 1.75 (33) 1.57 (10) 1.95 (3) N/A N/A 2.40 (10) 01/01/2015 Barclays U.S. Corporate 1 -5 Year Index 1.76 (33) 1.38 (21) 1.75 (7) 1.98 (5) 2.97 (15) 2.40 (9) IM U.S. Intermediate Investment Grade (MF) Median 1.61 1.03 0.89 1.03 2.11 1.53 Templeton Global Bond Fund (FBNRX) 0.13 (100) 2.43 (59) -4.02 (98) -0.36 (69) N/A 3.61 (18) 12/01/2011 Citigroup World Government Bond Index 7.09 (4) 5.78 (5) 5.92 (1) 0.49 (45) 1.16 (66) 0.26 (82) IM Global Fixed Income (MF) Median 3.15 2.71 0.49 0.24 1.84 1.91 American Core Realty Fund 2.63 (45) 5.75 (53) 13.36 (53) 13.16 (69) 12.72 (76) 4.33 (85) 10/01/2007 American Core Realty Policy 2.50 (49) 6.02 (44) 14.17 (39) 13.56 (56) 13.21 (66) 6.88 (8) IM U.S. Open End Private Real Estate (SA +CF) Median 2.41 5.76 13.40 13.79 13.74 4.77 Intercontinental 1.15 (100) 7.06 (15) 14.73 (23) 14.62 (32) 14.75 (22) 15.02 (25) 10/01/2010 NCREIF Fund Index -ODCE 2.21 (54) 5.62 (59) 13.70 (44) 13.64 (53) 13.26 (65) 13.80 (64) IM U.S. Open End Private Real Estate (SA +CF) Median 2.41 5.76 13.40 13.79 13.74 14.17 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. H Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst. Crescent resented on IRR page. 19 BOGDA` -N p p p 9 p 9 p p 9 �I GROUP Comparative Performance - IRR Crescent Direct Lending Fund QTR 0.00 1 YR 4.86 Comparative Performance - IRR Inception 2.92 As of March 31, 2016 Inception Date 10/14/2014 PSN TuiE 20 Q-'O* BOGDAHN GROUP Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2016 Comparative Performance Fiscal Year Returns 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 -2016 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Total Fund (Net) 6.26 (7) 0.33 (26) 11.86 (13) 16.72 (6) 18.96 (28) -1.17 (80) 10.67 (32) 0.70 (64) -16.84 (93) 13.03 (72) Total Fund Policy 5.08 (11) 0.55 (22) 11.38 (22) 15.00 (13) 19.61 (19) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 3.82 -0.59 10.24 12.62 17.99 0.14 9.93 1.56 -12.92 14.07 Total Fund (New Mgrs) (Net) 5.26 (7) 0.33 (26) 11.85 (13) 15.72 (6) 18.95 (28) -1.17 (80) 10.66 (32) 0.68 (64) -16.82 (93) N/A Total Fund Policy 5.08 (11) 0.55 (22) 11.38 (22) 15.00 (13) 19.61 (19) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 3.82 -0.59 10.24 12.62 17.99 0.14 9.93 1.56 -12.92 14.07 Total Fund (Gross) 6.47 (6) 0.63 (20) 12.21 (8) 16.33 (4) 19.81 (16) -0.46 (66) 11.40 (19) 1.43 (62) -16.48 (92) 13.92 (66) Total Fund Policy 5.08 (11) 0.55 (22) 11.38 (22) 15.00 (13) 19.61 (19) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 3.82 -0.59 10.24 12.62 17.99 0.14 9.93 1.56 -12.92 14.07 Total Fund (New Mgrs) (Gross) 5.47 (5) 0.63 (20) 12.21 (8) 16.33 (4) 19.81 (15) -0.45 (66) 11.40 (19) 1.39 (52) -16.46 (92) N/A Total Fund Policy 5.08 (11) 0.55 (22) 11.38 (22) 15.00 (13) 19.61 (19) 2.51 (10) 9.13 (73) 0.33 (69) -12.11 (36) 11.97 (86) All Public Plans -Total Fund Median 3.82 -0.59 10.24 12.62 17.99 0.14 9.93 1.56 -12.92 14.07 Total Equity 6.64 -1.62 W 16.461W 23.09 -4.68 18.62 Total Equity Policy 6.00 -2.28 14.65 22.30 26.46 -1.66 9.34 -6.91 -21.98 16.44 Total Domestic Equity 7.47 (36) -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 7.30 (39) -0.49 (60) 17.76 (67) 21.60 (37) 30.20 (45) 0.55 (57) 10.96 (30) -6.91 (64) -21.98 (68) 16.44 (61) IM U.S. Large Cap Core Equity (SA +CF) Median 6.50 -0.02 19.25 20.70 29.76 1.15 9.46 -5.76 -20.40 16.98 Total International Equity 3.83 (28) -4.36 (21) 10.08 (9) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (20) -39.55 (100) 23.63 (55) MSCI EAFE Index 1.73 (63) -8.27 (45) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (39) IM International Large Cap Value Equity (SA +CF) Median 2.62 -8.78 5.75 22.91 15.14 -8.56 5.04 6.28 -27.34 23.87 Total Fixed Income 2.03 1.40 6.34, ' 4.67 9.27 10.63 4.96 Total Fixed Policy 1.79 2.95 2.74 -0.71 4.31 4.22 7.52 9.69 4.16 5.33 Total Domestic Fixed Income 2.16 (97) 2.31 (24) 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 1.79 (98) 2.95 (19) 2.74 (100) -0.71 (100) 4.31 (100) 4.22 (14) 7.52 (78) 9.69 (2) 4.16 (1) 5.33 (99) IM U.S. Large Cap Core Equity (SA +CF) Median 6.50 -0.02 19.25 20.70 29.76 1.15 9.46 -5.76 -20.40 16.98 Total Global Fixed Income 2.41 (59) -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 5.78 (5) -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 2.71 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 Total Real Estate 6.48 (37) 14.27 (70) 13.47 (40) 16.42 (20) 12.81 (64) 16.82 (77) 2.71 (77) -32.42 (36) 4.72 (38) N/A NCREIF Fund Index -ODCE 5.62 (59) 14.92 (66) 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 5.76 16.07 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. 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 THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 21 n [ BOGLAl 11 u�T `� GROUP Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA +CF) Median RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Median Vanguard Total Stock Market (VITSX) Vanguard Total Stock Market Index Hybrid IM U.S. Multi -Cap Core Equity (MF) Median Galliard Core Fixed Income Barclays Intermediate Aggregate Index IM U.S. Intermediate Duration (SA +CF) Median Galliard TIPS Barclays U.S. TIPS 1 -10 Year Vanguard Short Term Bond Index (VSCSX) Barclays U.S. Corporate 1 -5 Year Index IM U.S. Intermediate Investment Grade (MF) Median Templeton Global Bond Fund (FBNRX) Citigroup World Government Bond 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 March 31, 2016 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 -2016 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 (22) -15.13 (16) N/A 8.11 (13) 3.17 (56) 19.15 (39) 19.27 (65) 29.19 (39) 3.78 (30) 12.65 (36) -1.85 (37) -20.88 (54) 19.35 (56) 5.21 3.68 18.12 20.31 27.62 1.37 11.31 -3.03 -20.34 20.19 3.83 (28) -4.36 (21) 10.08 (9) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) 11.87 (20) N/A N/A 1.73 (63) -8.27 (45) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (67) 3.80 (66) -30.13 (72) 25.38 (39) 2.62 -8.78 5.75 22.91 15.14 -8.56 5.04 6.28 -27.34 23.87 7.27 (19) -0.59 (32) 17.77 (28) N/A N/A N/A N/A N/A N/A N/A 7.25 (20) -0.55 (31) 17.77 (28) 21.60 (62) 30.28 (18) 0.71 (22) 11.16 (29) -6.03 (57) -21.19 (31) 16.98 (46) 5.04 -1.85 15.89 22.99 26.59 -1.80 9.50 -5.42 -22.84 16.64 2.24 (13) 3.04 (25) 3.15 (37) -0.64 (75) 5.82 (46) 4.16 (27) 9.63 (17) 12.08 (38) -1.68 (95) N/A 1.79 (62) 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (84) 4.22 (23) 7.52 (77) 9.69 (81) 4.16 (36) 5.33 (68) 1.87 2.70 2.87 -0.27 5.58 3.60 8.25 11.51 3.26 5.47 2.73 -0.38 0.59 -3.71 6.01 6.73 7.28 3.97 7.72 N/A 2.88 -0.82 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 1.57 (10) N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.38 (21) 1.98 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) 16.02 (2) -2.84 (74) 5.04 (13) 1.03 1.21 1.72 -0.47 5.11 1.99 7.56 10.57 -0.36 4.26 2.43 (59) -7.63 (90) 6.33 (12) 3.54 (3) N/A N/A N/A N/A N/A N/A 5.78 (5) -3.83 (52) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 5.90 (6) 8.69 (31) 2.71 -3.75 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 5.75 (53) 13.98 (72) 12.49 (65) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) -32.42 (35) 4.72 (38) N/A 6.02 (44) 14.71 (67) 12.39 (69) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) -22.09 (5) 5.27 (28) N/A 5.76 16.07 12.78 13.22 12.90 16.62 6.39 -34.80 3.23 18.34 7.06 (15) 13.96 (72) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) N/A N/A N/A N/A 5.62 (59) 14.92 (66) 12.40 (69) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) -35.19 (52) 3.18 (51) 18.21 (54) 5.76 16.07 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 n u�T Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 22 [ HOGLAl 11 `� GROUP Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 12.00 10.00 8.00 • 6.00 O O 4.00 0 O E ' 2.00 O O O O 0.00 -2.00 -4.00 -6.00 -8.00 • QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund Portfolio 1.27 (30) 5.47 (5) 1.13 (2) 4.14 (13) 8.23 (3) 9.18 (1) 8.22 (3) • Total Fund Policy 0.99 (46) 5.08 (11) 0.62 (8) 4.44 (8) 7.78 (8) 8.61 (7) 8.24 (3) Median 0.91 3.82 -1.56 2.86 6.16 7.02 6.38 Comparative Performance Performance Review Total Fund Portfolio As of March 31. 2016 28.00 24.00 20.00 1 00 16.00 • O 12.00 c K 8.00 LE 4.00 • 0.00 -4.00 -8.00 Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 To To To To To To Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Total Fund Portfolio 0.63 (20) 12.21 (8) 16.33 (4) 19.81 (15) -0.45 (66) 11.40 (19) • Total Fund Policy 0.55 (22) 11.38 (22) 15.00 (13) 19.61 (19) 2.51 (10) 9.13 (73) Median -0.59 10.24 12.62 17.99 0.14 9.93 -1.02 (44) 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Total Fund Portfolio 4.15 (5) -4.68 (36) 0.58 (12) 2.32 (61) 2.58 (35) -1.02 (44) Total Fund Policy 4.06 (6) -4.63 (34) 0.40 (20) 2.32 (60) 2.63 (33) -0.62 (20) All Public Plans -Total Fund Median 2.85 -5.06 -0.13 2.43 2.27 -1.14 23 THIS (F BOGDAHN GROUP 3 Yr Rolling Under /Over Performance - 5 Years 25.0 e Over 20.0 - Performance 0 0 15.0 - Q a 10.0 - LL 5.0 - 0 0.0 0.0 5.0 10.0 15.0 Total Fund Policy ( %) • Over Performance • Under Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 8.84 is 8.16 O 7.48 «' 6.80 v K N Performance Review Total Fund Portfolio As of March 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years 8.23 5.88 y 0.0 9.39 e 0,300080080081919 O Total Fund Policy 8.24 0 oo8e Median 6.16 5.71 w 25.0 00 Historical Statistics - 3 Years O Tracking Up Down `w 50.0 e� Downside Error Market Market Alpha a 75.0 Beta Risk Capture Capture Under w Total Fund Portfolio 1.02 106.21 108.46 0.10 Performance 1.38 1.04 2.76 Total Fund Policy 0.00 100.00 100.00 0.00 100.0 1.00 2.70 Historical Statistics - 5 Years 1 20.0 25.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 Information Sharpe Downside 5 -25 25- Median Median -75 75 -95 Ratio Ratio Beta Total Period Capture Capture Count Count Count Count 5.44 5.46 5.53 5.60 5.67 5.74 5.81 5.88 5.95 6.02 Risk (Standard Deviation %) Return Standard Deviation O Total Fund Portfolio 20 O Total Fund Policy 20 Peer Group Scatterg ram - 5 Years 8.54 r.. 7.93 7.32 «' 6.71 v K 6.10 5.49 7.8 8.1 17 (85 %) 3 (15 %) 0 (0 %) 0 (0 %) 16 (80 %) 3 (15 %) 1 (5 %) 0 (0 %) 8.4 8.7 9.0 Risk (Standard Deviation %) Return W 9.3 Standard Deviation 9.6 • Total Fund Portfolio 8.23 5.88 O Total Fund Portfolio 8.22 9.39 O Total Fund Policy 7.78 5.55 O Total Fund Policy 8.24 8.23 Median 6.16 5.71 Median 6.38 8.42 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund Portfolio 1.02 106.21 108.46 0.10 0.43 1.38 1.04 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 1.70 107.50 123.53 -0.99 0.05 0.89 1.13 5.77 Total Fund Policy 0.00 100.00 100.00 1.00 4.79 24 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Multi -Cap Core Equity (MF) 20.00 16.00 12.00 8.00 00 4.00 E v 0.00 K -4.00 -8.00 12.00 -16.00 -20.00 WIN I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG Total Stock Mkt (VITSX) 0.95 (38) 7.27 (19) -0.44 (18) 5.74 (16) 11.11 (24) N/A N/A • VG Total Stock Mkt Hybrid 0.95 (38) 7.25 (20) -0.45 (18) 5.75 (16) 11.14 (23) 11.97 (22) 11.02 (16) Median 0.34 5.04 -3.48 3.12 9.70 10.68 9.36 Comparative Performance 44.00 36.00 28.00 20.00 E 12.00 K 4.00 -4.00 -12.00 Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2016 ■ -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) ?1.60 (62) 30.28 (18) 0.71 (22) 11.16 (29) Median -1.85 15.89 ?2.99 ?6.59 -1.80 9.50 25 PSN THIS Q BOGDAHN � GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 VG Total Stock Mkt (VITSX) 6.26 (15) -7.26 (35) 0.09 (40) 1.81 (57) 5.20 (38) -0.01 (32) VG Total Stock Mkt Hybrid 6.25 (15) -7.26 (35) 0.08 (40) 1.81 (57) 5.24 (35) -0.02 (33) IM U.S. Multi -Cap Core Equity (MF) Median 4.86 -8.11 -0.13 2.14 4.56 -0.73 25 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years No data found. Peer Group Scatterg ram - 3 Years 11.75 11.28 10.81 «' 10.34 v K 9.87 9.40 11.25 11.34 11.43 11.52 11.61 Risk (Standard Deviation %) Return 11.70 Standard Deviation 11.79 Performance Review VG Total Stock Mkt (VITSX) As of March 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 11.11 11.38 • VG Total Stock Mkt (VITSX) N/A N/A • VG Total Stock Mkt Hybrid 11.14 11.37 w 25.0 p 0 0 0 0 0 0 9.70 11.73 0 0 9.36 13.11 O O `w a 50.0 Tracking Up Down Information Sharpe 75.0 Downside Error Market Market v K Ratio Ratio Beta Risk Capture 100.0 � 1 VG Total Stock Mkt (VITSX) 0.04 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 1.00 6.32 VG Total Stock Mkt Hybrid 5 -25 25- Median Median -75 75 -95 0.98 Total Period 6.31 Historical Statistics - 5 Years Count Count Count Count • VG Total Stock Mkt (VITSX) 1 • VG Total Stock Mkt Hybrid 20 Peer Group Scatterg ram - 5 Years 11.55 11.00 O 10.45 ' 9.90 v K 9.35 8.80 12.40 12.60 1(100%) 0 (0 %) 0 (0 %) 0 (0 %) 8(40%) 12 (60 %) 0 (0 %) 0 (0 %) 12.80 Risk (Standard Deviation %) Return 13.00 13.20 Standard Deviation • VG Total Stock Mkt (VITSX) 11.11 11.38 • VG Total Stock Mkt (VITSX) N/A N/A • VG Total Stock Mkt Hybrid 11.14 11.37 O VG Total Stock Mkt Hybrid 11.02 12.56 Median 9.70 11.73 Median 9.36 13.11 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) 0.04 99.91 100.02 -0.03 -0.58 0.98 1.00 6.32 VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 0.98 1.00 6.31 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture VG Total Stock Mkt (VITSX) N/A N/A N/A N/A N/A N/A N/A N/A VG Total Stock Mkt Hybrid 0.00 100.00 100.00 0.00 0.89 1.00 7.31 o PSN THIS Q BOGDAHN � GROUP Performance Review RBC Global (Voyageur) As of March 31. 2016 Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 16.00 44.00 12.00 36.00 8.00 28.00 O 4.00 20.00 O 0.00 12.00 • v v -4.00 4.00 _ -8.00 -4.00 • -12.00 -12.00 ■ -16.00 -20.00 -20.00 L -28.00 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 • RBC Global (Voyageur) -0.69 (36) 3.83 (28) -5.13 (32) -3.09 (36) 6.22 (11) 9.88 (5) 6.65 (9) O RBC Global (Voyageur) -4.36 (21) 10.08 (9) 27.54 (17) 24.74 (3) -8.75 (53) 11.69 (15) • MSCI EAFE Index -2.88 (73) 1.73 (63) -7.87 (58) -4.24 (54) 2.68 (54) 4.89 (53) 2.76 (52) O MSCI EAFE Index -8.27 (45) 4.70 (64) 24.29 (41) 14.33 (54) -8.94 (55) 3.71 (67) Median -1.99 2.62 -7.11 -3.88 2.90 4.97 2.82 Median -8.78 5.75 22.91 15.14 -8.56 5.04 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 RBC Global (Voyageur) 4.56 (37) -10.23 (45) 1.78 (43) 6.14 (15) -1.39 (15) -7.80 (92) MSCI EAFE Index 4.75 (29) -10.19 (44) 0.84 (67) 5.00 (42) -3.53 (47) -5.83 (60) IM International Large Cap Value Equity (SA +CF) Median 3.96 -10.77 1.35 4.52 -3.85 -5.67 27 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 40.0 Over Performance 30.0 v ° A 0 20.0 co O > (drp n 10.0 ° ° o 0 U 0.0 m -10.0 -10.0 0.0 10.0 20.0 MSCI EAFE Index ( %) eOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 8.00 6.00 E 4.00 2.00 11.20 11.40 11.60 11.80 Risk (Standard Deviation %) Return Performance Review RBC Global (Voyageur) As of March 31. 2016 O RBC Global (Voyageur) 3 Yr Rolling Percentile Ranking - 5 Years 12.06 O RBC Global (Voyageur) 6.65 16.99 y 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 O MSCI EAFE Index 2.76 0 0 2.90 11.43 00 0 2.82 O 14.55 Historical Statistics - 3 Years w 25.0 O Tracking Up Down 50.0 O 00 00 O 0 O 00 O Market a 0 00 0 0 Ratio Ratio Beta Risk Capture 0 RBC Global (Voyageur) 4.91 75.0 0 O 85.81 3.68 0.70 0.51 0.94 8.01 K 100.00 100.00 Under 100.0 Historical Statistics - 5 Years � 1 Performance 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 Down 3/16 30.0 40.0 Total Period 5 -25 25- Median Median -75 Error 75 -95 Market Alpha Count Count Count Risk Count Capture • RBC Global (Voyageur) 20 19 (95 %) 1 (5 %) 0 (0 %) 0 (0 %) • MSCI EAFE Index 20 0 (0 %) 9 (45 %) 10 (50 %) 1 (5 %) Peer Group Scatterg ram - 5 Years 8.00 O is 6.00 4.00 2.00 12.00 12.20 13.92 14.50 15.08 15.66 16.24 16.82 17.40 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation O RBC Global (Voyageur) 6.22 12.06 O RBC Global (Voyageur) 6.65 16.99 O MSCI EAFE Index 2.68 11.35 O MSCI EAFE Index 2.76 14.41 Median 2.90 11.43 Median 2.82 14.55 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.91 104.74 85.81 3.68 0.70 0.51 0.94 8.01 MSCI EAFE Index 100.00 100.00 1.00 8.51 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 4.99 111.96 94.29 3.91 0.77 0.48 1.00 10.57 MSCI EAFE Index 100.00 100.00 1.00 10.56 28 THIS (7 BOGDAHN `� GROUP Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 6.14 5.53 4.92 4.31 3.70 0 c «' 3.09 - 2.48 • 1.87 1.26 0.65 0.04 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Galliard Core Fixed Inc 2.54 (25) 2.24 (13) 2.65 (13) 3.53 (14) 2.33 (28) 2.86 (28) 3.58 (28) • Barclays Int Agg Index 2.31 (56) 1.79 (62) 2.20 (46) 3.21 (29) 2.14 (43) 2.36 (70) 3.11 (68) Median 2.34 1.87 2.13 2.99 2.09 2.54 3.30 Comparative Performance 17.00 14.00 11.00 8.00 c v K 5.00 • 2.00 1.00 Performance Review Galliard Core Fixed Inc As of March 31. 2016 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 (25) 3.15 (37) -0.64 (75) 5.82 (46) 4.16 (27) 9.63 (17) • Barclays Int Agg Index 2.95 (31) 2.74 (58) -0.71 (77) 4.31 (84) 4.22 (23) 7.52 (77) Median 2.70 2.87 -0.27 5.58 3.60 8.25 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Galliard Core Fixed Inc -0.29 (25) 1.04 (36) -0.64 (57) 1.51 (42) 1.10 (23) 0.09 (27) Barclays Int Agg Index -0.51 (64) 1.08 (31) -0.67 (61) 1.32 (79) 1.20 (18) 0.03 (40) IM U.S. Intermediate Duration (SA +CF) Median -0.43 0.94 -0.61 1.47 0.93 0.01 ORA THIS (7 BOGDAHN `� GROUP 3 Yr Rolling Under /Over Performance - 5 Years 15.0 Over Performance U C w 10.0 X � e o °P U 5.0 O v A 0 0.0 1 0.0 5.0 10.0 Barclays Int Agg Index ( %) • Over Performance + Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 2.43 2.34 2.25 «' 2.16 O K 2.07 1.98 1 1 2.16 2.19 2.22 2.25 2.28 Risk (Standard Deviation %) Return C Performance Review Galliard Core Fixed Inc As of March 31. 2016 1p Galliard Core Fixed Inc 20 • Barclays Int Agg Index 20 Peer Group Scatterg ram - 5 Years 3.80 3.60 3.40 3.20 I 3 00 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 10 (50 %) 8 (40 %) 9 1 1 1 1 2.31 2.34 2.37 2.04 2.06 2.08 2.10 2.12 2.14 2.16 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 2.18 • Galliard Core Fixed Inc 3 Yr Rolling Percentile Ranking - 5 Years 2.33 • Galliard Core Fixed Inc 3.58 y 0.0 �e000 2.22 • Barclays Int Agg Index 3.11 2.06 w 25.0 e Median 3.30 2.05 Historical Statistics - 3 Years O Up Down Information Sharpe 000000 Downside Error O Market U 50.0 -� Ratio Beta Risk 0 00 Galliard Core Fixed Inc 0.36 103.24 97.31 0.12 0.55 1.00 75.0 -� p O 0 O p O 0 0 00 v Historical Statistics - 5 Years O O O 0 K Tracking Up Down Information Sharpe Downside Error 100.0 Market Alpha Ratio Ratio Beta Risk Under Capture Capture Performance 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 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 3.80 3.60 3.40 3.20 I 3 00 6 (30 %) 14 (70 %) 0 (0 %) 0 (0 %) 0 (0 %) 2 (10 %) 10 (50 %) 8 (40 %) 9 1 1 1 1 2.31 2.34 2.37 2.04 2.06 2.08 2.10 2.12 2.14 2.16 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation 2.18 • Galliard Core Fixed Inc 2.33 2.33 • Galliard Core Fixed Inc 3.58 2.14 • Barclays Int Agg Index 2.14 2.22 • Barclays Int Agg Index 3.11 2.06 Median 2.09 2.21 Median 3.30 2.05 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard Core Fixed Inc 0.36 103.24 97.31 0.12 0.55 1.00 1.04 1.29 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 0.46 106.91 90.22 0.42 0.99 1.67 1.01 1.02 Barclays Int Agg Index 0.00 100.00 100.00 0.00 1.00 0.98 W THIS (7 BOGDAHN `� GROUP Peer Group Analysis - IM U.S. TIPS (SA +CF) 8.00 6.00 4.00 E 2.00 K 0.00 -2.00 00 1 17.00 14.00 11.00 8.00 5.00 c r 2.00 K -1.00 -4.00 • 00 -7.00 - -10.00 Performance Review Galliard TIPS As of March 31. 2016 is -4.00 -13.00 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 • Galliard TIPS 3.64 (67) 2.73 (86) 1.66 (34) 1.61 (67) -0.60 (26) 0.61 (62) 1.88 (87) • 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 3.60 (74) 2.88 (75) 1.84 (25) 1.46 (78) -0.72 (57) 0.42 (83) 1.88 (87) • 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 4.24 3.63 1.56 2.07 -0.69 0.82 2.97 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 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Galliard TIPS -0.88 (98) -0.60 (7) -0.44 (28) 1.90 (2) -1.21 (91) -1.94 (26) Barclays US TIPS 1 -10 Yr -0.70 (80) -0.86 (25) -0.15 (18) 1.20 (89) -1.00 (85) -1.99 (36) IM U.S. TIPS (SA +CF) Median -0.65 -1.12 -1.06 1.46 -0.14 -2.02 ca THIS (F BOGDAHN GROUP 3 Yr Rolling Under /Over Performance - 5 Years 12.0 Over Performance .... 8.0 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 -0.50 -0.55 -0.60 • «' -0.65 v Performance Review Galliard TIPS As of March 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 K O 25.0 O p p c v 50.0 -� EL O 75.0 Under 0 0 W eeoeee88oaeeoe ®o Performance 1 100.0 8.0 12.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count -0.70 Q -0.75 1 1 1 4.50 4.68 4.86 5.04 5.22 5.40 5.58 5.76 Risk (Standard Deviation %) Return Standard Deviation 1p Galliard TIPS 20 • Barclays US TIPS 1 -10 Yr 20 Peer Group Scatterg ram - 5 Years 3.24 2.88 2.52 «' 2.16 v K 1.80 1.44 1 3.68 3.91 4.14 2 (10 %) 2 (10 %) 1 (5 %) 15 (75 %) 1 (5 %) 1 (5 %) 2 (10 %) 16 (80 %) 1 1 1 4.37 4.60 4.83 5.06 5.29 Risk (Standard Deviation %) Return Standard Deviation 5.52 • Galliard TIPS -0.60 4.71 • Galliard TIPS 1.88 4.05 O Barclays US TIPS 1 -10 Yr -0.72 4.59 • Barclays US TIPS 1 -10 Yr 1.88 4.00 Median -0.69 5.52 Median 2.97 5.23 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Galliard TIPS 1.00 98.40 96.43 0.14 0.12 -0.14 1.03 3.03 Barclays US TIPS 1 -10 Yr 100.00 100.00 0.00 -0.18 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 98.79 98.05 -0.02 0.01 0.50 1.01 2.39 Barclays US TIPS 1 -10 Yr 100.00 100.00 1.00 32 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Intermediate Investment Grade (MF) 4.72 4.04 3.36 2.68 2.00 E v 1.32 K 0.64 -0.04 -0.72 -1.40 -2.08 • 0 o' r Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of March 31. 2016 17.00 14.00 11.00 8.00 E v 5.00 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 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) Median 1.21 1.72 -0.47 5.11 1.99 7.56 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • VG ST Bond Index (VSCSX) 1.75 (33) 1.57 (10) 1.95 (3) N/A N/A N/A N/A • Barclays US Corp 1 -5 Yr Index 1.76 (33) 1.38 (21) 1.75 (7) 2.13 (15) 1.98 (5) 2.56 (13) 2.97 (15) Median 1.61 1.03 0.89 1.47 1.03 1.66 2.11 Comparative Performance Performance Review VG ST Bond Index (VSCSX) As of March 31. 2016 17.00 14.00 11.00 8.00 E v 5.00 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 (13) 2.46 (29) 1.47 (14) 6.29 (29) 1.83 (59) 8.25 (38) Median 1.21 1.72 -0.47 5.11 1.99 7.56 33 THIS Q- BOGDAHN -'O* GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 VG ST Bond Index (VSCSX) -0.18 (6) 0.59 (28) -0.22 (34) 1.04 (56) N/A N/A Barclays US Corp 1 -5 Yr Index -0.37 (24) 0.58 (29) -0.21 (34) 1.24 (22) 0.36 (36) IM U.S. Intermediate Investment Grade (MF) Median -0.56 0.27 -0.40 1.08 0.26 33 THIS Q- BOGDAHN -'O* GROUP Peer Group Analysis - IM Global Fixed Income (MF) 10.00 8.00 0 6.00 O O 4.00 2.00 E v K 0.00 -2.00 - -4.00 -6.00 -8.00 C QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Templeton Global (FBNRX) 0.13 (100) 2.43 (59) -4.02 (98) -1.41 (79) -0.36 (69) 2.11 (37) N/A • Citigroup World Gvt Bond 7.09 (4) 5.78 (5) 5.92 (1) 0.05 (43) 0.49 (45) 0.20 (76) 1.16 (66) Median 3.15 2.71 0.49 -0.15 0.24 1.38 1.84 Comparative Performance 20.00 16.00 12.00 8.00 4.00 E v K 0.00 -4.00 -8.00 -12.00 ■ Performance Review Templeton Global (FBNRX) As of March 31. 2016 -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 PSN THIS 34 i BOGDAHN `-'O* GROUP 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Templeton Global (FBNRX) 2.29 (1) -6.08 (100) -0.24 (10) 0.25 (45) -1.67 (76) 0.06 (15) Citigroup World Gvt Bond -1.23 (77) 1.71 (1) -1.55 (41) -2.51 (100) -1.49 (71) -3.78 (92) IM Global Fixed Income (MF) Median -0.82 -0.35 -1.91 0.08 -1.04 -1.64 PSN THIS 34 i BOGDAHN `-'O* 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 0 w -4.0 E v � -8.0 -8.0 -4.0 0.0 4.0 Citigroup World Gvt Bond ( %) eOver Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 0.90 0.60 O 0.30 «' 0.00 v K -0.30 -0.60 4.16 4.48 4.80 5.12 5.44 5.76 Risk (Standard Deviation %) Return Performance Review Templeton Global (FBNRX) As of March 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years -0.36 6.38 O Templeton Global (FBNRX) y 0.0 N/A O O K 4.96 O Citigroup World Gvt Bond O w 25.0 Median 0.24 4.69 c 1.84 4.86 00 O O U 50.0 EL" O Tracking Up E 75.0 O O O 00 00 O O v O 00 O Error Market Market O Ratio Beta 00 00 Under 100.0 Capture Performance 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 8.0 12.0 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count O 6.08 6.40 Standard Deviation 6.72 • Templeton Global (FBNRX) 6 • Citigroup World Gvt Bond 20 Peer Group Scatterg ram - 5 Years 2.10 1.80 1.50 v 1.20 O 0.90 4.76 4.78 3 (50 %) 2 (33 %) 1 (17 %) 0 (0 %) 0 (0 %) 2 (10 %) 2 (10 %) 16 (80 %) 4.80 4.82 4.84 4.86 Risk (Standard Deviation %) Return Standard Deviation 4.88 • Templeton Global (FBNRX) -0.36 6.38 O Templeton Global (FBNRX) N/A N/A O Citigroup World Gvt Bond 0.49 4.96 O Citigroup World Gvt Bond 1.16 4.79 Median 0.24 4.69 Median 1.84 4.86 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global (FBNRX) 7.51 5.57 8.47 -0.27 -0.10 -0.03 0.18 4.53 Citigroup World Gvt Bond 0.00 100.00 100.00 1.00 Historical Statistics - 5 Years Tracking Up Market Down Market Information Alpha 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 35 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 23.00 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending 20.00 Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 American Core RE 3.03 (81) 3.33 (70) 3.75 (50) 17.00 1.80 (94) 3.36 (50) American Core RE Policy 3.43 (61) 3.63 (47) 3.92 (43) 3.40 (59) 14.00 3.46 (43) IM U.S. Open End Private Real Estate (SA +CF) Median 3.65 O p 3.74 3.56 3.50 3.35 O0 �O 11.00 c v K 8.00 5.00 2.00 - -1.00 -4.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • American Core RE 2.63 (45) 5.75 (53) 13.36 (53) 13.16 (61) 13.16 (69) 12.54 (69) 12.72 (76) • American Core RE Policy 2.50 (49) 6.02 (44) 14.17 (39) 13.70 (51) 13.56 (56) 12.85 (64) 13.21 (66) Median 2.42 5.76 13.40 13.70 13.79 13.38 13.74 Comparative Performance Performance Review American Core RE As of March 31. 2016 38.00 32.00 26.00 20.00 14.00 c 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 • American Core RE 13.98 (72) 12.49 (65) 12.27 (72) 11.56 (70) 16.11 (76) 2.71 (77) • American Core RE Policy 14.71 (67) 12.39 (69) 12.47 (69) 11.77 (66) 18.03 (41) 5.84 (53) Median 16.07 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 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 American Core RE 3.03 (81) 3.33 (70) 3.75 (50) 4.46 (24) 1.80 (94) 3.36 (50) American Core RE Policy 3.43 (61) 3.63 (47) 3.92 (43) 3.40 (59) 3.02 (65) 3.46 (43) IM U.S. Open End Private Real Estate (SA +CF) Median 3.65 3.48 3.74 3.56 3.50 3.35 PSN THIS Q BOGDAHN � GROUP 3 Yr Rolling Under /Over Performance - 5 Years 24.0 Over Performance .... 16.0 K v 8.0 0 • U c � 0.0 U E -8.0 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 14.10 13.80 13.50 O v 13.20 12.90 0.60 0.80 N 1.00 1.20 1.40 Risk (Standard Deviation %) Return Performance Review American Core RE As of March 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years y 0.0 O O O O w 25.0 O U 50.0 - O Q �y-.1� O O 75.0 - O O O 8 0 e 0 8 8 ® ® e e V O! Under 100.0 19 Performance 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 1 16.0 24.0 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1.60 Standard Deviation 1.80 0 American Core RE 20 O American Core RE Policy 20 Peer Group Scatterg ram - 5 Years 13.94 13.60 13.26 O «' 12.92 12.58 p 12.24 1.00 1.20 0 (0 %) 1 (5 %) 9 (45 %) 10 (50 %) 4 (20 %) 1 (5 %) 12 (60 %) 3 (15 %) 1.40 Risk (Standard Deviation %) Return 1.60 1.80 Standard Deviation • American Core RE 13.16 1.26 • American Core RE 12.72 1.15 O American Core RE Policy 13.56 0.87 • American Core RE Policy 13.21 1.10 Median 13.79 1.53 Median 13.74 1.67 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture American Core RE 1.10 97.19 N/A 2.89 -0.33 9.88 0.75 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 14.55 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 0.93 96.46 N/A 3.58 -0.48 10.55 0.68 0.00 American Core RE Policy 0.00 100.00 N/A 0.00 11.36 1.00 0.00 37 PSN THIS Q BOGDAHN � GROUP Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 26.00 23.00 20.00 17.00 14.00 E r 11.00 K 8.00 • • 5.00 - � 2.00 - • 1.00 4.00 O p O 00 O QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 1.15 (100) 7.06 (15) 14.73 (23) 13.88 (49) 14.62 (32) 14.79 (23) 14.75 (22) • NCREIF Fund Index 2.21 (54) 5.62 (59) 13.70 (44) 13.57 (52) 13.64 (53) 12.92 (63) 13.26 (65) Median 2.42 5.76 13.40 13.70 13.79 13.38 13.74 Comparative Performance Performance Review Intercontinental As of March 31. 2016 38.00 32.00 26.00 20.00 14.00 • 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 (72) 14.10 (35) 18.21 (10) 13.38 (43) 15.68 (77) N/A • NCREIF Fund Index 14.92 (66) 12.40 (69) 13.04 (55) 11.61 (67) 18.27 (40) 6.97 (43) Median 16.07 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 Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Intercontinental 5.84 (4) 3.67 (47) 3.37 (66) 1.18 (100) 5.10 (14) 3.79 (26) NCREIF Fund Index 3.34 (64) 3.68 (46) 3.82 (46) 3.39 (59) 3.26 (55) 3.24 (57) IM U.S. Open End Private Real Estate (SA +CF) Median 3.65 3.48 3.74 3.56 3.50 3.35 38 THIS Q- BOGDAHN -'O* GROUP 3 Yr Rolling Under /Over Performance - 5 Years 18.0 Over r. Performance °- 16.0 Ec o y , 0 O r 14.0 V c O U 1: c 12.0 10.0 � 10.0 12.0 14.0 16.0 NCREIF Fund Index ( %) 0 Over Performance Earliest Date X Latest Date Peer Group Scatterg ram - 3 Years 14.85 14.52 14.19 «' 13.86 13.53 p 13.20 0.50 1.00 1.50 2.00 2.50 Risk (Standard Deviation %) Return Performance Review Intercontinental As of March 31. 2016 3.00 Standard Deviation 3.50 O Intercontinental 11 O NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 15.37 14.84 14.31 «' 13.78 13.25 O 12.72 0.80 1.20 1 (9 %) 10 (91%) 0 (0 %) 0 (0 %) 0 (0 %) 6 (30 %) 12 (60 %) 2 (10 %) X 1.60 2.00 2.40 2.80 Risk (Standard Deviation %) Return Standard Deviation 3.20 • Intercontinental 3 Yr Rolling Percentile Ranking - 5 Years 3.00 • Intercontinental / y 0.0 O NCREIF Fund Index 13.64 0.95 O NCREIF Fund Index 13.26 w 25.0 Median 13.79 0 0 0 0 0 0 0 0 0 13.74 1.67 0 0 0 50.0 0 0 0 p Down O Sharpe Downside Error 0 0 0 0 0 0 0 0 0 Ratio Ratio e 75.0 Capture Capture 0 O K Intercontinental 2.66 107.16 N/A -6.32 0.35 4.59 1.57 100.0 NCREIF Fund Index 100.00 N/A 0.00 N/A Under 1.00 0.00 Historical Statistics - 5 Years . Performance 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 3/16 18.0 Downside Error 5 -25 25- Median Median -75 75 -95 Ratio Beta Risk Total Period Count Count Count Count 3.00 Standard Deviation 3.50 O Intercontinental 11 O NCREIF Fund Index 20 Peer Group Scatterg ram - 5 Years 15.37 14.84 14.31 «' 13.78 13.25 O 12.72 0.80 1.20 1 (9 %) 10 (91%) 0 (0 %) 0 (0 %) 0 (0 %) 6 (30 %) 12 (60 %) 2 (10 %) X 1.60 2.00 2.40 2.80 Risk (Standard Deviation %) Return Standard Deviation 3.20 • Intercontinental 14.62 3.00 • Intercontinental 14.75 2.75 O NCREIF Fund Index 13.64 0.95 O NCREIF Fund Index 13.26 1.15 Median 13.79 1.53 Median 13.74 1.67 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 2.66 107.16 N/A -6.32 0.35 4.59 1.57 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 2.79 110.89 N/A 9.00 0.49 5.06 0.42 0.00 NCREIF Fund Index 100.00 N/A 1.00 0.00 KE THE BOGDAHN GROUP. Private Equity Fund Overview Crescent Direct Lending Fund As of March 31, 2016 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 $1,800,000.0 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 $2,250,000.0 Capital Invested: $1,627,724 Management Fees: $467 Expenses: $34,826 $1,800,000.0 Interest: - Total Contributions: $1,627,724 $1,350,000.0 Remaining Capital Commitment: $814,393 Total Distributions: $453,892 $900,000.0 Market Value: $1,205,527 Inception Date: 10/14/2014 $450,000.0 Inception IRR: 2.9 TVPI: 1.0 $0.0 ($450,000.0) 10/14 1/15 4/15 7/15 10/15 1/16 4/16 Net Asset Value Distribution Contributions 40 � THk: 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 March 31, 2016 Total Equity Policy ht ( %) Allocation Mandate Weight ( %) PSN TuiE 41 i BOGDAHN `-'O* 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 PSN TuiE 41 i BOGDAHN `-'O* GROUP Compliance Checklist Total Fund Winter Springs GE As of March 31, 2016 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 Total 'Jo NIA RBC Global Yes No NIA ✓ I T. -I.f- American RE ?s No NIA i WA Gaillard Yes No NIA ✓ �I 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 March 31, 2016 Receipt & Disbursement 362,661 - Total Fund 0.37 39,604,383 146,328 43 PSN TuiE Q BOGDAHN � GROUP Estimated Market Value Estimated Annual Fee ($) Annual Fee Fee Schedule (% ) ($) Vanguard Total Stock Market (VITSX) 0.04 19,799,027 7,920 0.04 % of Assets Total Domestic Equity 0.04 19,799,027 7,920 RBC Global (Voyageur) 0.95 5,363,250 50,951 0.95 % of Assets Total International Equity 0.96 6,363,260 60,961 Galliard Core Fixed Income 0.25 4,640,688 11,602 0.25 % of Assets Galliard TIPS 0.15 1,209,173 1,814 0.15 % of Assets Vanguard Short Term Bond Index (VSCSX) 0.12 1,280,146 1,536 0.12 % of Assets Total Domestic Fixed Income 0.21 7,130,006 14,962 Templeton Global Bond Fund (FBNRX) 0.51 1,178,212 6,009 0.51 % of Assets Total Global Fixed Income 0.61 1,178,212 6,009 Crescent Direct Lending Fund 1.35 1,205,527 16,275 1.35 % of Assets Total Other Fixed Income 1.36 1,206,627 16,276 Intercontinental 1.10 2,573,029 28,303 1.10 % of Assets American Core Realty Fund 1.10 1,992,671 21,919 1.10 % of Assets Total Real Estate 1.10 4,666,700 60,223 Receipt & Disbursement 362,661 - Total Fund 0.37 39,604,383 146,328 43 PSN TuiE Q BOGDAHN � GROUP Disclosures Total Fund As of March 31, 2016 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: 44 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 T F-[ �. BOGDAHN GROUP.. xinrplr,'/i N�, i urrr hwestm m mrd fiduchoi j- decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland Detroit Pittsburgh Tulsa