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HomeMy WebLinkAboutAgenda Fire Pension 080614THE RESOURCE CENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Meeting of Wednesday, August 6, 2014 Location: City Hall, Council Chambers Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 1 PM AGENDA 1. Call Meeting to Order 2. Public Comments 3. Minutes: • Regular Meeting Held on July 7, 2014 4. Investment Monitor Report: The Bogdahn Group (Troy Brown) • ICMA Update (Self-Directed DROP Accounts) • 6/30/2013 Preliminary Quarterly Report 5. Attorney Report: Sugarman & Susskind, P.A. (Pedro Herrera) • Memo Regarding the Chapter 175 Share Account Payments to Eligible Members 6. Administrative Report: Resource Centers (Audrey Ross) • Disbursements • Benefit Approvals 7. Old Business 8. New Business 9. Other Business • Auditor RFP Responses • Service Provider Contract Review – Custodian 10. Next Scheduled Meeting: Monday September 8, 2014 @ 9AM. 11. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting. PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD JULY 7, 2014 A meeting of the Board of Trustees was called to order at 9:05AM at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Martin Cohen, Vice Chair Audrey Ross, Administrator Tom Murphy, Secretary Pedro Herrera, Attorney Ed Morejon Dan Johnson, Investment Consultant PUBLIC COMMENTS N/A MINUTES The Board reviewed the minutes of the regular meeting held on March 10, 2014. A motion was made by Ed Morejon to approve the minutes of the March 10, 2014 regular meeting as amended. The motion was seconded by Tom Murphy and carried 3-0. The Board reviewed the minutes of the special meeting held on April 17, 2014. A motion was made by Ed Morejon to approve the minutes of the April 17, 2014 special meeting. The motion was seconded by Tom Murphy and carried 3-0. The Board reviewed the minutes of the regular meeting held on May 7, 2014. A motion was made by Ed Morejon to approve the minutes of the May 7, 2014 regular meeting as amended. The motion was seconded by Tom Murphy and carried 3-0. INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN JOHNSON) Mr. Johnson reviewed the flash performance report as of May 31, 2014. For the quarter to date the fund is up 1.89% and for the fiscal year to date the fund is 11.51%, which is already over and above the Plan’s assumed rate of return. Mr. Johnson noted that all the managers are doing well and that he did not have any recommendations at this time in regards to the managers or asset allocation. Mr. Cohen asked Mr. Johnson if his firm had any relationship with any of the managers that manage money for this Plan. Mr. Johnson reassured the board that the Bogdahn Group has zero relationship with any of the managers and his firm works strictly off hard dollar fees only. Mr. Johnson updated the board on the ICMA process. He stated that the account is now setup and open. Now we will work on setting up meetings with the current DROP members so that can move over into this investment if they so wish too. 2 ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA) Mr. Herrera briefly presented his memo to the board regarding the payments from the Chapter 175/185 accounts. The Trustees tabled this discussion until the next meeting when all the Trustees were present. ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS) DISBURSEMENTS The Board reviewed the disbursements presented for approval by the Administrator. A motion was made by Ed Morejon to approve the disbursements as presented by the Administrator. The motion was seconded by Tom Murphy and carried 3-0. BENEFIT APPROVALS The Board reviewed the application for distribution of Share account (final distribution) for Michael Ritz and the application to enter the DROP for James Kreidler. A motion was made by Tom Murphy to approve the application for distribution of Share account (final distribution) for Michael Ritz. The motion was seconded by Tom Murphy and carried 3-0. A motion was made by Tom Murphy to approve the application to enter the DROP for James Kreidler. The motion was seconded by Ed Morejon and carried 3-0. The Trustees noted that they should put some kind of policy in place that puts a timeframe as to how long a member has to review their final DROP/retirement calculations, select an option, and return their selection (form) back to the Administrator. Some members are taking a very long time to make this decision and the board would feel more comfortable if there was a policy in place regarding this. A motion was made by Ed Morejon to adopt a Board policy that states members have 90 days from when they receive their final retirement numbers back to choose an option, or it will default to the Plan’s standard form . The motion was seconded by Tom Murphy and carried 3-0. NEW BUSINESS Mr. Morejon asked if a DROP entry application could be revoked once already turned in. Mr. Pedro briefly reviewed the Ordinance and stated that OLD BUSINESS OTHER BUSINESS The Trustees tabled the auditor RFP results and the service provider contract review until the next meeting when all the Trustees are presented. There being no further business, the meeting adjourned at 10:18AM. Respectfully submitted, Tom Murphy, Secretary City of Palm Beach Gardens Firefighters' Pension Trust Fund Investment Performance Review 2nd Quarter 2014 Universe Sample Information is Preliminary Private Real Estate Data is Preliminary 2nd Quarter 2014 Market Environment 1 ƒItwasaremarkablyuneventfulquarteracrossmarketsdespitepolitical concerns(MiddleEastdiscourse)andeconomicworries(-2.9%restatedUS GDPgrowthinthefirstquarter)thatwouldseeminglyhavealargerimpact onoverallvolatility.TheCBOEVolatilityIndex(VIX)finishedthequarterat 11.6,itslowestquarterlyclosesinceDecember2006.TheQ1growth slowdown,largelyweatherrelated,benefittedbothemergingmarketsand domesticfixedincomeinQ2asitcontributedtoaflatter,loweryieldcurve. Thisnaturallybenefitsbondholders,butalsohelpedsupportemerging markets,whichexperiencedaselloffearlierthisyearonlowerliquidityand concernsregardinghigherrates.Asaresult,allmajormarketswerepositive duringthequarter. ƒTheS&P500appreciated5.2%duringtheperiod,whichmarkedthesixth consecutivepositivequarterfortheindex.ThisisthefirsttimetheS&Phas hadaquarterlyrunthisstrongsince1998.Inaddition,theindexhas appreciatedineachofthepastfivemonths.Themarketseemstobe shruggingoffthesignificantdeclineinGDPgrowthinthefirstquarter, insteadfocusingonimpressivejobgrowthnumbers(+500,000newjobs addedinAprilandMay)andcontinuedoveralldeclinesintheunemployment rate,whichendedthequarterat6.3%.Finally,thehousingmarketcontinues toshowimprovementwitha5.1%year-over-yeargaininmedianhome pricesandcontinuedtightsupply(5.6monthsofinventory). ƒEmergingmarketequitiessurgedtotheheadoftheassetclassesduringthe secondquarter,afterstrugglingonarelativebasisforamajorityofthepast yearandahalf.Developedinternationalequitymarketslaggeddomestic largecapequitiesslightly,butwereupstronglyonanabsolutebasis.Forthe trailingone-yearperiod,emergingequitieslaggedtheirdeveloped counterpartsby9.4%. ƒAfterastrongstarttotheyear,domesticbondscontinuedtomovehigherin thesecondquarter,rising2.0%.Thestrongperformancepushedthetrailing, one-yearreturnbackintopositiveterritory(+4.4%).Thequarterly performancewasaidedbypositivereturnsfromeachmajorsectorofthe market,ledbya3.8%returnfromTIPS.Afterdropping8.6%in2013,TIPS havereboundedin2014,movingtheirreturnoverthepasttwelvemonthsto 4.4%.Despiteanumberofeconomicandpoliticalconcerns,Corporate Bondsalsomovesharplyhigher,followedbyMBSandGovernmentissues. Source: Investment Metrics The Market Environment Major Market Index Performance As of June 30, 2014 0.0% 2.7% 2.4% 3.8% 1.3% 2.0% 2.0% 5.0% 5.1% 4.9% 5.2% 6.7%4.3% 5.2% 0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0% 3-Month T-Bill Barclays Corp IG Barclays MBS Barclays US TIPS Barclays US Govt Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS Quarter Performance 0.0% 7.7% 4.7% 4.4% 2.1% 4.4% 23.6% 26.9% 25.4% 25.2% 24.6% 14.7% 24.1% 22.3% 0.0%5.0%10.0%15.0%20.0%25.0%30.0% 3-Month T-Bill Barclays Corp IG Barclays MBS Barclays US TIPS Barclays US Govt Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS 1-Year Performance 2 Source: Investment Metrics The Market Environment Domestic Equity Style Index Performance As of June 30, 2014 ƒThedeclineinoverallvolatilityinthemidstofalong-standingbullmarket wouldsuggestthatsmallcapstocksshouldoutperformtheirlargecap brethren,butthatwasnotthecaseduringthequarter.Onaverage,large capswerethebestperformingsegment,butthedispersionacrossmidand largecapitalizationswasminimal.MidCapValuewasthesinglebest performingarea.Smallcapswerelargelyhurtbythereemergenceof investorpreferencetowardshigheryieldingsectors,whichfavorlarger,more establisheddividendpayingcompanies.However,smallcapstockshada resurgenceinJune,whichsuggestsmarketleadershipcouldbechanging. Valuestocksoutperformedgrowthstocksinthemidandsmall capitalizations,buttherewasnosimilarskewinthelargercapsegment. ƒAsofJune2014,intrastockcorrelations(~0.28)continuetofall.While slightlyabovethelong-termaverage(~0.26since1926),thecurrentlevelis veryfavorableforstockpickingandsuggeststhefuturesuccessofactively managedstrategiesremainsbright. ƒCurrentvaluationsremainfair.AsofJune30,2014,theS&P500tradedat 1,960.Whilethisrepresentsa25%premiumtotheOctober9,2007 inflectionpointvaluationof1,565,theforwardlookingP/Emultiplesare virtuallyidentical(15.2xin2007,15.6xin2014).ThecurrentP/Emultipleis inlinewiththe25-yearaverage. ƒOnaverage,marketsexperienceanintra-yearpullbackofapproximately 14.4%(usingS&P500databackto1980).In2013,thelargestdeclinewas 6%,whichhasbeenrepeatedsofarin2014.Despitemanypundits continuingtospeculatethatweareoverduefora“typical”marketcorrection of10%orgreater,relativevaluations,generallypositiveeconomicgrowth, andbenignmacrofactorscontinuetofavordomesticequitiesover internationalandfixedincomealternativesinthemindsofmostinvestors. ƒOnanabsolutebasis,smallcapstocksaremoreexpensiverelativetotheir midandlargecapcounterparts(18.5xPEversus18.4x,and15.6x, respectively).However,relativetotheirlongtermaverages,smallcap valuationsarein-linewithmidcap.Bothareslightlyexpensiverelativeto largecaps,especiallyonthevalueside. 1.7% 2.0% 2.4% 4.4% 5.0% 5.6% 5.1% 5.1% 5.1% 4.9% 4.9% 4.9% 0.0%1.0%2.0%3.0%4.0%5.0%6.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value Quarter Performance -Russell Style Series 24.7% 23.6% 22.5% 26.0% 26.9% 27.8% 26.9% 25.4% 23.8% 26.8% 25.2% 23.7% 0.0%5.0%10.0%15.0%20.0%25.0%30.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value 1-Year Performance -Russell Style Series 3 The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2014 Source: Morningstar Direct ƒDuringthequarter,theCommerceDepartment’sdownwardrevisionoffirst quarterGDPtoasurprising-2.9%hadastrongimpactonequitysector returns.Thelowereconomicgrowthnumbercontributedtoasurprising declineininterestratesacrossmostpointsontheyieldcurve.Givenalower yieldenvironment,investorsagainreturnedtohigheryieldingsectorssuch asEnergyandespeciallyUtilities.Thispreferencefordividends,lastseento asignificantdegreein2012,helpedcontributeto12.3%and6.8%quarterly returnsforthesesectors,respectively. ƒInthisinterestrateenvironment,itisnosurprisethatREITsalsofaredwell, appreciating7.2%duringthequarter.Thisbringsthesector’syear-to-date gaintoarobust18.2%(asmeasuredbytheDowJonesUSSelectREIT Index).However,thisperformancewasnotenoughtobuoytheFinancials sectorasawhole,asFinancialsweretheworstperformingsectorwithinthe S&P500,appreciatingameager2.3%duringtheperiod. ƒSimilartothefirstquarter,ConsumerDiscretionarywasonceagaina relativeunderperformerinboththesmallandlargecapbenchmarksduring theperiod.Again,mostoftheimpactcouldbeweatherrelated.Many analystsrelatedthesoftretailnumberstotheeffectsofabrutalwinterthat extendedwellintothesecondquarterreportingperiod.Mostanalystssee brightertimesaheadastheybelievethatthenowlowerinventorylevelswill promoteacceleratedgrowthinthesecondhalfoftheyearasretailers replenishdepletedstock. ƒOnanabsolutevaluationbasis,whenviewedacrossaten-yeartrailing periodendingJune30,2014,FinancialsandTelecomwerethemost attractivelyvaluedareaswithintheS&P500.Eachsectortradedat approximately12.5x-14.0x.ConsumerStaplesappearthemostovervalued atthemoment.Staplestradeatapproximately17.5xonanabsolutebasis, whichisverynearthetopofitsten-yearrange.Relativetotheten-year average,onlytwosectorscurrentlytradeatorbelowaveragevaluations: TelecomandInformationTechnology. 21.1% 6.5% 32.0% 32.4% 29.3% 30.5% 18.6% 30.7% 15.9% 21.8% 7.7% 4.3% 5.5% 6.1% 3.8% 4.6% 2.5% 12.3% 4.8% 3.3% 0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0% Utilities (3.1%) Telecom Services (2.3%) Materials (3.8%) Info Technology (18.1%) Industrials (11.3%) Health Care (12.9%) Financials (16.9%) Energy (9.9%) Consumer Staples (8.9%) Consumer Disc (12.7%) Russell 1000 Quarter 1-Year 23.7% 17.0% 25.6% 25.9% 26.7% 33.9% 19.3% 40.5% 23.4% 15.6% 8.9% -3.1% 1.9% 1.9% 0.3% 1.3% 1.9% 11.5% 1.1% 1.3% -5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0% Utilities (3.3%) Telecom Services (0.7%) Materials (4.9%) Info Technology (17.5%) Industrials (14.7%) Health Care (13.1%) Financials (23.5%) Energy (5.8%) Consumer Staples (3.8%) Consumer Disc (12.8%) Russell 2000 Quarter 1-Year 4 The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2014 Source: Morningstar Direct Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Apple Inc 2.78%21.9%68.0%Information Technology Pharmacyclics, Inc.0.33%-10.5%12.9%Health Care Exxon Mobil Corporation 2.15%3.8%14.5%Energy Ocwen Financial Corporation 0.32%-5.3%-10.0%Financials Microsoft Corp 1.71%2.4%24.3%Information Technology Starwood Property Trust, Inc.0.30%2.8%28.6%Financials Johnson & Johnson 1.47%7.2%25.4%Health Care Genesee & Wyoming, Inc. Class A 0.27%7.9%23.8%Industrials General Electric Co 1.31%2.3%17.1%Industrials 3D Systems Corporation 0.27%1.1%36.2%Information Technology Wells Fargo & Co 1.25%6.4%30.9%Financials Alaska Air Group, Inc.0.27%2.4%85.4%Industrials Chevron Corp 1.23%10.7%14.1%Energy Two Harbors Investment Corp 0.27%4.8%13.7%Financials Berkshire Hathaway Inc Class B 1.15%1.3%13.1%Financials CoStar Group Inc 0.26%-15.3%22.5%Information Technology JPMorgan Chase & Co 1.08%-4.5%12.2%Financials Dril-Quip, Inc.0.26%-2.6%21.0%Energy Procter & Gamble Co 1.06%-1.7%5.3%Consumer Staples Gulfport Energy Corporation 0.26%-11.8%33.4%Energy Top 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Hillshire Brands Co 0.04%67.8%91.9%Consumer Staples Idenix Pharmaceuticals Inc 0.02%299.7%567.6%Health Care Zillow Inc 0.02%62.2%153.9%Information Technology Dolan Co 0.00%281.3%-96.3%Industrials Platform Specialty Products Corp 0.01%47.1%NA Materials MannKind Corp 0.06%172.6%68.5%Health Care Golar LNG Ltd 0.01%45.5%97.2%Energy Quest Resource Holding Corp 0.00%145.8%77.2%Industrials Williams Companies Inc 0.20%44.7%86.6%Energy RadNet Inc 0.00%133.5%150.2%Health Care Questcor Pharmaceuticals Inc 0.03%43.5%108.1%Health Care Achillion Pharmaceuticals Inc 0.04%130.1%-7.5%Health Care Targa Resources Corp 0.03%41.5%123.1%Energy Sypris Solutions, Inc.0.00%102.1%77.9%Consumer Discretionary Newfield Exploration Co 0.03%40.9%85.0%Energy Medical Action Industries 0.00%97.0%78.3%Health Care Polypore International, Inc.0.00%39.5%18.4%Industrials American Apparel Inc 0.00%79.6%-53.1%Consumer Discretionary Micron Technology Inc 0.18%39.3%129.9%Information Technology Repligen Corp 0.02%77.2%176.6%Health Care Bottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector NII Holdings Inc 0.00%-53.8%-91.7%Telecommunication Services GSE Holding Inc 0.00%-79.3%-99.0%Materials Molycorp, Inc.0.00%-45.2%-58.5%Materials L & L Energy, Inc.0.00%-79.2%-90.1%Energy ITT Educational Services, Inc.0.00%-41.8%-31.6%Consumer Discretionary Corinthian Colleges Inc 0.01%-78.6%-86.8%Consumer Discretionary FireEye Inc 0.02%-34.1%NA Information Technology Endocyte Inc 0.03%-72.3%-49.8%Health Care Coach Inc 0.05%-30.6%-38.4%Consumer Discretionary EveryWare Global Inc 0.00%-71.5%-89.3%Consumer Discretionary Intercept Pharmaceuticals Inc 0.01%-28.2%427.7%Health Care Parkervision Inc 0.03%-69.2%-67.5%Information Technology Walter Energy Inc 0.00%-27.8%-47.4%Materials OncoGenex Pharmaceuticals Inc 0.01%-68.3%-61.9%Health Care Cliffs Natural Resources Inc 0.01%-25.8%-4.8%Materials Global Geophysical Services, Inc.0.01%-66.6%-99.2%Energy Zynga Inc Class A 0.01%-25.3%15.5%Information Technology Education Management Corp 0.01%-65.3%-69.9%Consumer Discretionary Whole Foods Market Inc 0.07%-23.6%-24.3%Consumer Staples PowerSecure International Inc 0.00%-58.4%-35.2%Industrials 5 Source: MSCI Global Index Monitor (Returns are Gross) ƒVolatilitydeclinedduringthequarter,andmonthlyreturnsforallofthe diversifiednon-USequityindexeswerepositive.Thisisverydifferent fromlastquarter,whenthefinalreturnappearedthatnothinghad happened,buttheintra-quarterpathresembledarollercoaster. ƒTherangeofreturnsfortheindividualcountriesoutsideoftheU.S.was wide.ThebestdevelopedreturnwasNorwayat+10.8%andtheworst developedreturnwasIrelandat-9%.Ontheemergingcountryside, Turkeywasthestrongestperformerat+15.4%andGreecewastheworst at-10.7%. ƒQatarandtheUAEwereaddedtotheMSCIEMIndexduringthesecond quarter(May).Bothcountries’equitiesweredownforthequarter,which seemscounterintuitivegiventhelikelihoodthatmanyindexfundsadded capitaltostockswithinthetwocountries(orevenmorelikelytoETFs). ƒCurrencymovesforthequarterwerefavorableforU.S.investors overseas,astheUSDdepreciatedversusamajorityofEuropean,Asian andLatinAmericancurrencies.ThefewexceptionswereFrance, GermanyandIndia. ƒEnergy(+11.6%)andUtilities(+7.1%)werethetoptwoperforming sectorsindevelopedequities,followedbydefensivesectors,Consumer Staples(+6.3%)andHealthCare(+5.7%).Withinemergingequities, InformationTechnology(+11.2%)tooktopsectorhonors,followedclosely byUtilities(+10.5%)andEnergy(+10.2%). ƒValueagainoutperformedgrowthindevelopedequities.Thetrend reversedinemergingequitiesfromlastquarterandvalueoutperformed growththereaswell.Smallcapstocksunderperformedlargecapsamong bothdevelopedandemergingmarketindices. The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2014 5.2% 5.6% 4.3% 5.3% 5.3% 3.4% 3.7% 3.9% 4.2% 7.0% 7.3% 4.5% 6.7% 5.6% 3.7% 4.3% 4.9% 5.3% 0.0%2.0%4.0%6.0%8.0% EM Latin Amer (5) EM Asia (8) EM EMEA (10) Emerging Mkt (23) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (45) Quarter Performance USD Local Currency 9.7% 14.7% 17.3% 14.1% 25.2% 20.9% 18.4% 19.3% 18.2% 9.3% 17.0% 12.9% 14.7% 25.1% 30.0% 24.1% 24.4% 22.3% 0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0% EM Latin Amer (5) EM Asia (8) EM EMEA (10) Emerging Mkt (23) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (45) 1-Year Performance USD Local Currency 6 The Market Environment U.S. Dollar International Index Attribution & Country Detail As of June 30, 2014 Source: MSCI Global Index Monitor (Returns are Gross in USD) MSCI-EAFE MSCI-ACWIxUS Quarter 1-Year Country Weight Weight Return Return United Kingdom 21.4%15.3%6.1%26.6% Japan 20.3%14.4%6.7%10.1% France 10.1%7.2%2.4%29.3% Germany 9.3%6.6%2.3%30.2% Switzerland 9.0%6.4%2.4%23.0% Australia 7.7%5.5%2.9%21.0% Spain 3.7%2.6%7.4%57.9% Sweden 3.0%2.2%-0.3%24.5% Hong Kong 2.8%2.0%8.3%17.7% Netherlands 2.7%1.9%0.7%27.0% Italy 2.6%1.9%0.3%52.4% Denmark 1.5%1.1%3.3%50.9% Singapore 1.4%1.0%5.7%10.4% Belgium 1.2%0.9%5.6%32.8% Norway 0.9%0.6%10.8%30.9% Finland 0.9%0.6%5.6%50.0% Israel 0.5%0.4%2.4%32.5% Ireland 0.3%0.2%-9.0%35.4% Austria 0.3%0.2%-0.2%19.5% Portugal 0.2%0.1%-1.9%20.8% New Zealand 0.1%0.1%-1.0%30.4% Total EAFE Countries 100.0%71.2%4.3%24.1% Canada 7.6%10.1%27.2% Total Developed Countries 78.7%4.9%24.4% China 3.9%5.7%15.9% Korea 3.3%6.4%24.7% Taiwan 2.6%10.4%20.8% Brazil 2.3%7.7%13.5% South Africa 1.6%4.6%22.4% India 1.5%12.7%27.4% Russia 1.2%10.8%8.2% Mexico 1.1%6.6%7.7% Malaysia 0.8%3.5%5.4% Indonesia 0.5%0.8%-11.4% Thailand 0.5%7.8%-1.6% Poland 0.4%-0.8%25.7% Turkey 0.4%15.4%-3.1% Chile 0.3%2.7%-11.6% Colombia 0.2%7.9%10.3% Philippines 0.2%9.2%8.6% Greece 0.2%-10.7%55.1% Peru 0.1%8.5%12.3% United Arab Emirates 0.1%-5.5%57.9% Qatar 0.1%-5.4%20.6% Czech Republic 0.1%1.9%25.4% Egypt 0.1%1.1%48.4% Hungary 0.0%4.6%-14.9% Total Emerging Countries 21.3%6.7%14.7% Total ACWIxUS Countries 100.0%5.3%22.3% MSCI -EAFE Sector Weight Quarter Return 1-Year Return Consumer Discretionary 11.9%3.6%21.1% Consumer Staples 11.1%6.3%18.2% Energy 7.3%11.6%34.0% Financials 25.3%2.7%22.5% Health Care 10.5%5.7%27.5% Industrials 12.7%2.6%23.9% Information Technology 4.4%1.3%20.3% Materials 8.0%3.6%23.5% Telecommunication Services 4.9%4.0%33.9% Utilities 3.9%7.1%27.8% Total 100.0%4.3%24.1% MSCI -ACWIxUS Sector Weight Quarter Return 1-Year Return Consumer Discretionary 10.8%3.9%21.4% Consumer Staples 9.9%6.0%14.8% Energy 9.6%11.6%28.3% Financials 26.5%3.9%20.2% Health Care 8.2%5.5%27.2% Industrials 11.0%3.4%23.4% Information Technology 6.9%6.5%28.1% Materials 8.5%4.2%19.7% Telecommunication Services 5.2%4.4%23.8% Utilities 3.6%7.7%25.7% Total 100.0%5.3%22.3% MSCI -Emerging Mkt Sector Weight Quarter Return 1-Year Return Consumer Discretionary 9.1%4.2%21.1% Consumer Staples 8.3%4.1%0.9% Energy 10.8%10.2%13.6% Financials 27.0%5.4%9.8% Health Care 1.8%8.1%17.5% Industrials 6.5%4.9%15.6% Information Technology 17.3%11.2%36.1% Materials 8.8%3.9%11.7% Telecommunication Services 7.0%5.7%2.8% Utilities 3.6%10.5%20.5% Total 100.0%6.7%14.7% 7 Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of June 30, 2014 2.5% 2.7% 1.6% 2.0% 3.8%2.7% 2.4% 1.4% 2.4% 3.4% 2.4% 1.9% 1.8% 0.0%1.0%2.0%3.0%4.0% Multiverse (6.24) Global Agg x US (6.93) Intermediate Agg (4.27) Aggregate (5.60) U.S. TIPS (7.22) U.S. Corporate IG (7.12) U.S. Mortgage (5.06) U.S. Treasury (5.26) U.S. High Yield (4.04) Baa (7.44) A (7.11) AA (5.67) AAA (5.05) Quarter Performance 7.7% 9.4% 3.5% 4.4% 4.4% 7.7% 4.7% 2.0%11.7% 9.4% 7.0% 4.7% 3.2% 0.0%2.0%4.0%6.0%8.0%10.0%12.0% Multiverse (6.24) Global Agg x US (6.93) Intermediate Agg (4.27) Aggregate (5.60) U.S. TIPS (7.22) U.S. Corporate IG (7.12) U.S. Mortgage (5.06) U.S. Treasury (5.26) U.S. High Yield (4.04) Baa (7.44) A (7.11) AA (5.67) AAA (5.05) 1-Year Performance ƒAmidlacklustereconomicnewsandgeopoliticalconcernsinUkraine, domesticbondscontinuedtheirstrongperformanceinthesecond quarter,rising2.0%.Bondmarketsbeganthequarteronabullishnote, movinghigheronasurprisinglyweakfirstquarterUSGDPreportand concernsovertheUkraine-Russiaconflict.InMay,weakeconomicnews fromChinaandEurope,alongwithlowerrevisionstofirstquarterGDP, pushedbondshigher,especiallyinmaturitiestenyearsorgreater.Late inthequarter,volatilityfellandcreditspreadsmovedlower,resultingina positivereturnforthemonthofJune.Overall,itwasagoodquarterfor bondinvestors,especiallyinlightofthefactthattheFederalReserve remainsonpacetoendtheirquantitativeeasingprogrambyyear-end. ƒForthesecondconsecutivequarter,allinvestmentgradesectorsposted positivereturns.Thoughsmallinsize,TIPSwerethetopperformingarea ofthemarket(3.8%).Amongthemajorsectors,CorporateBondprices continuedtogrindhigherandwerethestrongestperformingsegment (2.7%),followedbyMBS(2.4%)andTreasuries(1.4%). ƒThetrendoflowerqualitybondsoutperforminghigherqualitysecurities withininvestmentgradecreditcontinuedforyetanotherquarter.Bonds ratedBaarose3.4%,followedbyA-rated(2.4%),AA-rated(1.9%),and AAA-rated(1.8%). ƒAmidthestrongdemandforlonger-datedTreasuries,thebroad-based BarclaysAggregateIndexoutperformedshortandintermediatebondsfor thesecondconsecutivequarter.Thebullishsentimentin2014,has benefittedTheBarclaysAggregateIndex,whichhasoutpacedshorter- datedbondsbyawidemarginoverthepasttwelvemonths. ƒThecontinuedappetiteforincomeresultedinstrongdemandfor CorporateBonds,regardlessofcreditquality.Forthefirsttimeineight quarters,highyieldissuerstrailedinvestmentgradecredits,but remainedwellaheadoverthepasttwelvemonths. ƒForthesecondconsecutivequarter,Internationalbonds,representedby theBarclaysGlobalAggregateexUSIndex,surpassedtheirdomestic bondcounterparts(2.7%versus2.0%).Thestrongshowingpushed internationalbondsaheadoftheUSmarketby5.0%onatrailing,one- yearbasis. 8 Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2014 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14 1-Year Trailing Market Rates Fed Funds Rate TED Spread 3-Month Libor BAA OAS 10yr Treasury 10yr TIPS 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 1 mo3 mo6 mo 1 yr2 yr3 yr5 yr7 yr 10 yr20 yr30 yr Treasury Yield Curve 9/30/2013 12/31/2013 3/31/2014 6/30/2014 ƒDomesticbondsmarketscontinuedtheirstrongperformancein2014, returning2.0%inthesecondquarter.Thebullishtoneofthemarket wasdue,inpart,toasurprisingweakfirstquarterUSGDPreport,overall weaknessinChinaandEurope,andgeopoliticalconcernsinUkraine. ƒThestrongyear-to-dateperformanceoccurreddespitelittlechangein policybytheFederalReserve,whichremainsoncoursetoendits quantitativeeasingprogrambyyear-end.Aswemovetowardsyearend, investorswillincreasinglyfocustheirattentiononthetimingand magnitudeofanypotentialinterestrateincreases. ƒDespitenumerousmacroandgeopoliticalconcerns,sentimentinthe creditmarketsremainedpositive,resultinginBAAoptionadjusted spreadstightening17basispoints(bps). ƒAsidefrommodestweaknessinJune,yieldlevelsformaturitiesten yearsandgreaterdeclinedsharplyduringthesecondquarter.Yieldson 10and30-yearmaturitiesdeclined20and22bps,respectively,during theperiod. ƒAlthoughtheyieldcurvecontinuedtoflatteninthesecondquarter,itstill providesinvestorsasizableyieldgainforextendingmaturities,especially intheintermediatepartoftheyieldcurve.Thespreadbetweenkey pointsontheyieldcurveisshownbelow. 2-5YearU.S.Treasury 115bps 5-10YearU.S.Treasury 91bps 10-30YearU.S.Treasury 81bps ƒSincerisingtomoreattractiveyieldsinmid-to-late2013,theyieldcurve hasflattened,spreadshavenarrowedandinterestrateshavedeclined, particularlyinlonger-datedmaturities.Whilethishasresultedinstrong returnsoverthepasttwelvemonths,webelievethereturnoutlookgoing forwardispoor.Furthermore,thelownominalyieldsandnarrowcredit spreadsofferonlyamodestamountofincometooffsettheamountof interestrateriskassumedbyinvestors. 9 Pa g e I n t e n t i o n a l l y L e f t B l a n k 10 Schedule of Investable Assets Total Fund Total Fund Policy Net Cash Flow $0.0 $6,461,538.5 $12,923,077.0 $19,384,615.5 $25,846,154.0 $32,307,692.5 $38,769,231.0 $45,230,769.5 $51,692,308.0 $58,153,846.5 $64,615,385.0 $71,076,923.5 $77,538,462.0 $84,000,000.5 ($6,461,538.5) Market Valu e 7/07 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 6/14 $44,790,342.6 $68,013,318.2 Schedule of Investable Assets Total Fund August 1, 2007 To June 30, 2014 11 June 30, 2014 : $68,013,318 Cash & Equivalents Real Estate Global Fixed Income Domestic Fixed Income International Equity Domestic Equity March 31, 2014 : $65,236,464 Cash & Equivalents Real Estate Global Fixed Income Domestic Fixed Income International Equity Domestic Equity Allocation Market Value Allocation Domestic Equity 38,264,665 56.3¢£ International Equity 7,162,042 10.5¢£ Domestic Fixed Income 13,074,118 19.2¢£ Global Fixed Income 3,470,204 5.1¢£ Real Estate 5,595,803 8.2¢£ Cash & Equivalents 446,486 0.7¢£ Allocation Market Value Allocation Domestic Equity 36,405,236 55.8¢£ International Equity 6,960,048 10.7¢£ Domestic Fixed Income 12,823,856 19.7¢£ Global Fixed Income 3,378,594 5.2¢£ Real Estate 5,454,643 8.4¢£ Cash & Equivalents 214,087 0.3¢£ Asset Allocation by Asset Class Total Fund As of June 30, 2014 12 June 30, 2014 : $68,013,318 VG TSMI Dana (LC) R & D Intercontinental American Templeton GB GHA Agincourt Manning & Napier RBC Dana (SC)Fiduciary March 31, 2014 : $65,236,464 VG TSMI Dana (LC) R & D Intercontinental American Templeton GB GHA Agincourt Manning & Napier RBC Dana (SC)Fiduciary Allocation Market Value Allocation VG TSMI 13,910,124 20.5¢£ Dana (LC)14,411,114 21.2¢£ Fiduciary 6,111,714 9.0¢£ Dana (SC)3,831,713 5.6¢£ RBC 3,525,976 5.2¢£ Manning & Napier 3,636,066 5.3¢£ Agincourt 6,555,437 9.6¢£ GHA 6,518,680 9.6¢£ Templeton GB 3,470,204 5.1¢£ American 2,624,827 3.9¢£ Intercontinental 2,970,977 4.4¢£ R & D 446,486 0.7¢ Allocation Market Value Allocation VG TSMI 13,265,428 20.3¢£ Dana (LC)13,654,484 20.9¢£ Fiduciary 5,777,683 8.9¢£ Dana (SC)3,707,640 5.7¢£ RBC 3,438,019 5.3¢£ Manning & Napier 3,522,030 5.4¢£ Agincourt 6,414,319 9.8¢£ GHA 6,409,537 9.8¢£ Templeton GB 3,378,594 5.2¢£ American 2,553,582 3.9¢£ Intercontinental 2,901,061 4.4¢£ R & D 214,087 0.3¢ Asset Allocation By Manager Total Fund As of June 30, 2014 13 Asset Allocation vs. Target Allocation Allocation Differences 0.00%3.00%6.00%9.00%11.00%-3.00 %-6.00 %-9.00 %-11.00 % Cash Equivalents Real Estate Global Fixed Income Intermediate Fixed Income Broad Fixed Income International Equity Domestic Equity 0.66% -1.77 % 0.10% -0.42 % -0.36 % 0.53% 1.26% Market Value $Allocation (%)Target (%) Domestic Equity 38,264,665 56.3 55.0 International Equity 7,162,042 10.5 10.0 Broad Fixed Income 6,555,437 9.6 10.0 Intermediate Fixed Income 6,518,680 9.6 10.0 Global Fixed Income 3,470,204 5.1 5.0 Real Estate 5,595,803 8.2 10.0 Cash Equivalents 446,486 0.7 0.0 Total Fund 68,013,318 100.0 100.0 Asset Allocation vs. Target Allocation Total Fund As of June 30, 2014 14 Asset Allocation Attributes Domestic EquityInternational Equity Domestic Fixed Income Global Fixed IncomeReal EstateCash Equivalent Total Fund ($)%($)%($)%($)%($)%($)%($)% Total Domestic Equity 36,965,17896.60 --------1,299,4873.4038,264,66556.26 Vanguard Total Stock Index (VITSX)13,910,124100.00 ----------13,910,12420.45 Dana (Large Cap)14,063,95897.59 --------347,1562.4114,411,11421.19 Fiduciary Management, Inc.5,198,79585.06 --------912,92014.946,111,7148.99 Dana (Small Cap)3,792,30298.97 --------39,4111.033,831,7135.63 Total International Equity --7,162,042100.00 --------7,162,04210.53 RBC International Portfolio --3,525,976100.00 --------3,525,9765.18 Manning & Napier Overseas (EXOSX)--3,636,066100.00 --------3,636,0665.35 Total Domestic Fixed Income ----12,787,14997.81 ----286,9682.1913,074,11819.22 Agincourt Capital Management ----6,422,38597.97 ----133,0522.036,555,4379.64 Garcia, Hamilton & Associates ----6,364,76497.64 ----153,9162.366,518,6809.58 Total Global Fixed Income ------3,470,204100.00 ----3,470,2045.10 Templeton Global Bond Adv (FBNRX)------3,470,204100.00 ----3,470,2045.10 Total Real Estate --------5,595,803100.00 --5,595,8038.23 American Core Realty Fund --------2,624,827100.00 --2,624,8273.86 Intercontinental Real Estate --------2,970,977100.00 --2,970,9774.37 Receipt & Disbursement ----------446,486100.00446,4860.66 Total Fund Portfolio 36,965,17854.357,162,04210.5312,787,14918.803,470,2045.105,595,8038.232,032,9412.9968,013,318100.00 Asset Allocation Total Fund As of June 30, 2014 15 Financial Reconciliation Quarter to Date Market Value 04/01/2014 ContributionsDistributions Management Fees Other Expenses Return On Investment Market Value 06/30/2014 Total Domestic Equity 36,405,236 37,991 --37,991 -1,859,430 38,264,665 Vanguard Total Stock Index (VITSX)13,265,428 ----644,696 13,910,124 Dana (Large Cap)13,654,484 21,366 --21,366 -756,631 14,411,114 Fiduciary Management, Inc.5,777,683 10,823 --10,823 -334,031 6,111,714 Dana (Small Cap)3,707,640 5,802 --5,802 -124,073 3,831,713 Total International Equity 6,960,048 7,473 --7,473 -201,994 7,162,042 RBC International Portfolio 3,438,019 7,473 --7,473 -87,958 3,525,976 Manning & Napier Overseas (EXOSX)3,522,030 ----114,037 3,636,066 Total Domestic Fixed Income 12,823,856 8,015 --8,015 -250,261 13,074,118 Agincourt Capital Management 6,414,319 4,009 --4,009 -141,118 6,555,437 Garcia, Hamilton & Associates 6,409,537 4,006 --4,006 -109,143 6,518,680 Total Global Fixed Income 3,378,594 ----91,610 3,470,204 Templeton Global Bond Adv (FBNRX)3,378,594 ----91,610 3,470,204 Total Real Estate 5,454,643 ----141,161 5,595,803 American Core Realty Fund 2,553,582 ----71,245 2,624,827 Intercontinental Real Estate 2,901,061 ----69,916 2,970,977 Receipt & Disbursement 214,087 820,573 -549,920 --38,270 14 446,486 Total Fund Portfolio 65,236,464 874,053 -549,920 -53,480 -38,270 2,544,470 68,013,318 Financial Reconciliation Total Fund 1 Quarter Ending June 30, 2014 16 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2013 Net Transfers ContributionsDistributions Management Fees Other Expenses Return On Investment Market Value 06/30/2014 Total Domestic Equity 32,329,467 -1,7371,008,263-1,010,000 -108,263 -6,045,19838,264,665 Vanguard Total Stock Index (VITSX)10,962,682 900,000 900,000 ---2,047,44213,910,124 Dana (Large Cap)12,620,516 -697,408 62,592 -760,000 -62,592 -2,550,59814,411,114 Fiduciary Management, Inc.5,231,333 28,232 28,232 --28,232 -880,382 6,111,714 Dana (Small Cap)3,514,936 -232,561 17,439 -250,000 -17,439 -566,777 3,831,713 Total International Equity 5,912,660 370,880 370,880 --20,880 -899,382 7,162,042 RBC International Portfolio 2,954,820 20,880 20,880 --20,880 -571,156 3,525,976 Manning & Napier Overseas (EXOSX)2,957,841 350,000 350,000 ---328,226 3,636,066 Total Domestic Fixed Income 12,121,597 423,397 423,397 --23,397 -552,52013,074,118 Agincourt Capital Management 5,890,744 411,562 411,562 --11,562 -264,694 6,555,437 Garcia, Hamilton & Associates 6,230,854 11,835 11,835 --11,835 -287,827 6,518,680 Total Global Fixed Income 2,903,577 365,000 365,000 ---201,627 3,470,204 Templeton Global Bond Adv (FBNRX)2,903,577 365,000 365,000 ---201,627 3,470,204 Total Real Estate 4,109,2741,106,3741,125,000 -29,765 -47,150 -438,444 5,595,803 American Core Realty Fund 2,056,054 375,000 375,000 --13,160 -206,933 2,624,827 Intercontinental Real Estate 2,053,220 731,374 750,000 -29,765 -33,990 -231,511 2,970,977 Receipt & Disbursement 458,224-2,263,9144,489,182-4,390,387 --110,581 49 446,486 Total Fund Portfolio 57,834,800 -7,781,722-5,430,152 -199,690 -110,581 8,137,22068,013,318 Financial Reconciliation Total Fund October 1, 2013 To June 30, 2014 17 Pa g e I n t e n t i o n a l l y L e f t B l a n k 18 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Portfolio (Gross)3.88 (23)13.69 (13)19.39 (12)11.38 (12)13.25 (21)6.02 (60)05/01/1998 Total Fund Policy 3.96 (19)12.51 (28)18.27 (24)11.95 (5)14.10 (6)5.76 (83) All Public Plans-Total Fund Median 3.56 11.35 16.96 10.04 12.58 6.12 Total Fund Portfolio (Net)3.80 13.34 18.89 10.86 12.73 5.45 05/01/1998 Total Fund Policy 3.96 12.51 18.27 11.95 14.10 5.76 Total Equity 4.75 17.96 26.13 13.76 16.99 9.49 07/31/2008 Total Equity Policy 4.93 16.72 24.80 15.20 18.24 9.07 Total Domestic Equity 5.11 (21)18.63 (21)26.35 (29)14.51 (54)17.56 (55)9.09 (27)07/01/2002 Total Domestic Equity Policy 4.87 (30)17.75 (32)25.22 (41)16.46 (28)19.33 (28)8.26 (46) IM U.S. All Cap Core Equity (SA+CF+MF) Median 4.37 16.47 24.59 14.83 17.83 8.16 Total International Equity 2.90 (78)14.51 (11)25.08 (19)9.95 (15)14.65 (18)7.64 (24)01/01/2006 Total International Equity Policy 5.25 (37)10.99 (38)22.27 (35)8.06 (32)11.94 (46)N/A MSCI EAFE Index 4.34 (53)11.19 (36)24.09 (24)8.59 (26)12.27 (41)5.36 (59) IM International Equity (SA+CF+MF) Median 4.49 10.02 20.06 6.45 11.66 5.84 Total Fixed Income 2.11 4.84 5.77 4.93 6.26 5.31 07/01/2002 Total Fixed Income Policy 1.92 3.37 4.51 2.71 4.15 4.68 Total Domestic Fixed Income 1.95 (77)4.43 (39)5.32 (30)N/A N/A 4.17 (19)09/01/2011 IM U.S. Broad Market Core Fixed Income (SA+CF) Median2.14 4.18 4.85 4.31 5.72 3.61 IM U.S. Intermediate Duration (SA+CF) Median 1.39 2.79 3.56 3.34 4.70 2.84 Total Global Fixed Income 2.71 (39)6.43 (25)7.52 (37)N/A N/A 5.94 (9)09/01/2011 Citigroup World Government Bond 2.27 (53)3.86 (82)6.85 (50)1.57 (86)3.60 (92)0.12 (93) IM Global Fixed Income (MF) Median 2.38 5.30 6.81 3.66 5.53 3.14 Total Real Estate 2.59 (N/A)9.26 (N/A)13.11 (N/A)13.45 (N/A)8.72 (N/A)4.80 (N/A)07/01/2006 Total Real Estate Policy 2.76 (N/A)8.64 (N/A)12.30 (N/A)11.69 (N/A)9.89 (N/A)6.46 (N/A) NCREIF Property Index 0.00 (N/A)5.34 (N/A)8.07 (N/A)10.27 (N/A)9.05 (N/A)5.95 (N/A) IM U.S. Open End Private Real Estate (SA+CF) MedianN/A N/A N/A N/A N/A N/A Comparative Performance Total Fund As of June 30, 2014 Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 19 Comparative Performance Total Fund As of June 30, 2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Domestic Equity Vanguard Total Stock Index (VITSX)4.86 (31)17.79 (30)25.20 (40)N/A N/A 22.34 (40)04/01/2013 Vanguard Total Stock Market Index 4.87 (30)17.80 (30)25.21 (40)16.48 (25)19.44 (24)22.35 (40) IM U.S. Multi-Cap Core Equity (MF) Median 4.37 16.40 24.47 14.75 17.75 21.61 Dana (Large Cap)5.54 (24)20.83 (16)28.09 (19)16.60 (52)18.94 (50)8.92 (54)07/01/2002 Dana Custom Index 5.23 (33)18.40 (50)24.61 (65)16.58 (53)19.05 (47)7.88 (93) IM U.S. Large Cap Core Equity (SA+CF) Median 4.86 18.36 25.61 16.62 18.91 8.99 Fiduciary Management, Inc.5.78 (25)16.83 (66)N/A N/A N/A 18.53 (65)08/01/2013 Russell 3000 Index 4.87 (45)17.75 (49)25.22 (66)16.46 (59)19.33 (62)18.71 (60) IM U.S. All Cap Core Equity (SA+CF) Median 4.81 17.61 26.56 16.66 19.48 19.14 Dana (Small Cap)3.35 (32)16.54 (21)27.77 (34)19.65 (12)24.19 (15)9.73 (75)05/01/2005 Russell 2000 Index 2.05 (63)12.19 (72)23.64 (70)14.57 (75)20.21 (80)9.66 (77) IM U.S. Small Cap Core Equity (SA+CF) Median 2.55 14.41 25.45 16.54 21.92 11.03 Total International Equity RBC International Portfolio 2.56 (86)19.33 (4)29.91 (8)14.31 (6)17.60 (6)9.36 (6)01/01/2006 MSCI AC World ex USA 5.25 (24)10.99 (69)22.27 (66)6.21 (81)11.59 (71)5.79 (58) IM International Large Cap Value Equity (SA+CF) Median4.18 11.74 24.03 8.66 12.72 5.92 Manning & Napier Overseas (EXOSX)3.24 (69)10.22 (55)20.79 (55)5.67 (74)11.77 (45)11.39 (42)06/01/2009 MSCI AC World ex USA 5.25 (10)10.99 (38)22.27 (40)6.21 (63)11.59 (49)11.16 (49) IM International Multi-Cap Core Equity (MF) Median 3.90 10.51 21.36 6.89 11.53 11.05 Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 20 Comparative Performance Total Fund As of June 30, 2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Domestic Fixed Income Agincourt Capital Management 2.20 (44)4.24 (48)5.09 (39)4.24 (52)5.62 (58)6.68 (32)10/01/2008 Barclays Aggregate Index 2.04 (67)3.78 (75)4.37 (74)3.66 (86)4.85 (87)5.37 (92) IM U.S. Broad Market Core Fixed Income (SA+CF) Median2.14 4.18 4.85 4.31 5.72 6.37 Garcia, Hamilton & Associates 1.70 (21)4.62 (10)5.59 (10)4.85 (8)6.43 (11)6.38 (11)07/01/2008 Barclays Intermediate Aggregate Index 1.62 (28)2.70 (57)3.48 (55)2.86 (77)4.23 (76)4.55 (77) IM U.S. Intermediate Duration (SA+CF) Median 1.39 2.79 3.56 3.34 4.70 5.01 Total Global Fixed Income Templeton Global Bond Adv (FBNRX)2.71 (39)6.43 (25)7.52 (37)N/A N/A 8.35 (5)10/01/2011 Citigroup World Government Bond 2.27 (53)3.86 (82)6.85 (50)1.57 (86)3.60 (92)0.84 (96) IM Global Fixed Income (MF) Median 2.38 5.30 6.81 3.66 5.53 4.06 Total Real Estate American Core Realty Fund 2.79 (N/A)8.83 (N/A)12.53 (N/A)12.05 (N/A)8.00 (N/A)3.85 (N/A)07/01/2006 NCREIF Fund Index-Open End Diversified Core (EW)2.76 (N/A)8.64 (N/A)12.30 (N/A)12.22 (N/A)9.45 (N/A)4.12 (N/A) IM U.S. Open End Private Real Estate (SA+CF) MedianN/A N/A N/A N/A N/A N/A Intercontinental Real Estate 2.41 (N/A)9.89 (N/A)13.91 (N/A)14.93 (N/A)N/A 15.28 (N/A)10/01/2010 NCREIF Fund Index-Open End Diversified Core (EW)2.76 (N/A)8.64 (N/A)12.30 (N/A)12.22 (N/A)9.45 (N/A)13.58 (N/A) IM U.S. Open End Private Real Estate (SA+CF) MedianN/A N/A N/A N/A N/A N/A Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 21 Pa g e I n t e n t i o n a l l y L e f t B l a n k 22 Comparative Performance Fiscal Year Returns FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005 Total Fund Portfolio (Gross)15.11 (12)18.93 (30)0.08 (56)8.61 (83)0.00 (67)-11.96 (28)11.67 (90)8.65 (51)14.35 (26) Total Fund Policy 14.70 (16)19.99 (14)2.54 (13)9.32 (69)-1.86 (82)-14.02 (55)13.39 (68)9.16 (41)9.23 (84) All Public Plans-Total Fund Median 12.5517.93 0.29 9.98 1.32-13.6714.39 8.6512.34 Total Fund Portfolio (Net)14.5618.28 -0.37 8.14 -0.46-12.3010.96 7.9213.82 Total Fund Policy 14.7019.99 2.54 9.32 -1.86-14.0213.39 9.16 9.23 Total Equity 22.0625.54 -4.3810.56 -1.59 N/A N/A N/A N/A Total Equity Policy 21.8227.76 -0.89 9.91 -4.90 N/A N/A N/A N/A Total Domestic Equity 21.70 (60)26.53 (45)-2.59 (57)11.15 (30)-3.60 (41)-16.51 (10)14.18 (74)10.21 (34)21.50 (14) Total Domestic Equity Policy 21.60 (61)30.20 (18)0.55 (27)10.96 (34)-6.42 (66)-21.52 (34)16.52 (53)10.22 (34)12.69 (73) IM U.S. All Cap Core Equity (SA+CF+MF) Median 22.9425.68 -1.99 9.74 -4.88-22.8816.74 9.1814.97 Total International Equity 24.24 (23)20.29 (18)-10.51 (42)8.14 (54)11.28 (30)-30.51 (46)24.22 (72)N/A N/A Total International Equity Policy 22.69 (31)14.33 (67)-8.94 (31)3.71 (76)3.80 (56)-30.13 (42)N/A N/A N/A MSCI EAFE Index 24.29 (23)14.33 (67)-8.94 (31)3.71 (76)3.80 (56)-30.13 (42)25.38 (64)19.65 (46)26.32 (56) IM International Equity (SA+CF+MF) Median 18.2416.39-11.44 8.93 5.08-31.1028.1619.1927.00 Total Fixed Income 0.12 8.82 3.39 9.2015.33 0.03 5.24 3.64 1.77 Total Fixed Income Policy -1.56 4.11 4.22 7.52 9.69 4.16 5.43 3.54 1.48 Total Domestic Fixed Income -0.24 (12)8.27 (14)N/A N/A N/A N/A N/A N/A N/A Total Domestic Fixed Income Policy -0.80 (30)4.31 (98)4.22 (91)7.52 (96)9.69 (89)4.16 (21)5.43 (25)3.54 (87)1.48 (100) IM U.S. Broad Market Core Fixed Income (SA+CF) Median-1.22 6.61 5.26 9.2012.32 2.56 5.14 3.85 3.10 Total Global Fixed Income 3.33 (4)13.25 (7)N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -4.60 (85)3.29 (97)4.61 (8)4.99 (95)13.78 (51)5.90 (6)8.69 (30)2.23 (64)3.02 (74) IM Global Fixed Income (MF) Median -1.52 7.34 1.56 7.8213.91-1.47 7.29 2.53 5.11 Total Real Estate 15.18 (36)12.45 (56)15.92 (79)2.44 (80)-32.96 (39)4.98 (35)21.07 (12)N/A N/A Total Real Estate Policy 11.84 (81)11.00 (77)16.10 (78)5.84 (52)-22.09 (5)5.27 (28)17.31 (69)N/A N/A NCREIF Property Index 11.00 (83)11.00 (77)16.10 (78)5.84 (52)-22.09 (5)5.27 (28)17.31 (69)17.62 (56)19.19 (69) IM U.S. Open End Private Real Estate (SA+CF) Median13.0912.9016.62 6.09-35.27 3.4718.5318.1719.98 Comparative Performance Total Fund As of June 30, 2014 Returns for periods greater than 1 yr. are annualized. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 23 Comparative Performance Total Fund As of June 30, 2014 FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005 Total Domestic Equity Vanguard Total Stock Index (VITSX)N/A N/A N/A N/A N/A N/A N/A N/A N/A Vanguard Total Stock Market Index 21.50 (62)30.28 (15)0.71 (20)11.16 (29)-6.03 (62)-21.19 (29)16.98 (47)10.38 (30)14.70 (52) IM U.S. Multi-Cap Core Equity (MF) Median 22.8625.60 -2.23 9.59 -4.84-22.9916.68 9.1814.86 Dana (Large Cap)19.62 (62)31.58 (21)-0.89 (72)10.10 (42)-13.66 (97)-12.23 (6)15.43 (72)10.93 (45)18.87 (23) Dana Custom Index 19.34 (63)30.20 (45)0.95 (54)8.90 (59)-10.62 (92)-21.56 (62)16.52 (58)10.22 (57)14.57 (56) IM U.S. Large Cap Core Equity (SA+CF) Median 20.6729.72 1.16 9.45 -5.78-20.4816.9810.7515.11 Fiduciary Management, Inc.N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 21.60 (77)30.20 (31)0.55 (62)10.96 (53)-6.42 (60)-21.52 (63)16.52 (63)10.22 (37)14.57 (72) IM U.S. All Cap Core Equity (SA+CF) Median 23.8627.38 0.9811.05 -6.06-21.1117.67 9.1517.13 Dana (Small Cap)31.48 (57)39.20 (7)3.82 (1)15.86 (35)-13.06 (84)-21.93 (79)8.02 (89)5.23 (79)N/A Russell 2000 Index 30.06 (71)31.91 (54)-3.53 (1)13.35 (72)-9.55 (66)-14.48 (25)12.34 (71)9.92 (32)17.95 (82) IM U.S. Small Cap Core Equity (SA+CF) Median 32.2632.35-36.0014.58 -7.80-17.6914.85 8.1421.89 Total International Equity RBC International Portfolio 27.45 (16)24.65 (3)-8.87 (57)12.31 (10)7.72 (39)-29.87 (70)24.22 (48)N/A N/A MSCI AC World ex USA 16.98 (82)15.04 (50)-10.42 (70)8.00 (36)6.43 (47)-29.97 (70)31.06 (13)19.36 (72)29.48 (28) IM International Large Cap Value Equity (SA+CF) Median22.6315.01 -8.41 4.95 6.01-27.3823.9120.9226.81 Manning & Napier Overseas (EXOSX)20.93 (49)16.04 (36)-12.51 (73)2.52 (83)N/A N/A N/A N/A N/A MSCI AC World ex USA 16.98 (81)15.04 (53)-10.42 (42)8.00 (22)6.43 (25)-29.97 (36)31.06 (6)19.36 (35)29.48 (7) IM International Multi-Cap Core Equity (MF) Median 20.8215.16-11.05 4.95 1.99-31.2224.9218.4125.29 Returns for periods greater than 1 yr. are annualized. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 24 Comparative Performance Total Fund As of June 30, 2014 FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005 Total Domestic Fixed Income Agincourt Capital Management -1.40 (61)6.96 (43)4.92 (68)9.55 (37)14.76 (18)N/A N/A N/A N/A Barclays Aggregate Index -1.68 (82)5.16 (91)5.26 (49)8.16 (87)10.56 (80)3.65 (32)5.14 (51)3.67 (76)2.80 (81) IM U.S. Broad Market Core Fixed Income (SA+CF) Median-1.22 6.61 5.26 9.2012.32 2.56 5.14 3.85 3.10 Garcia, Hamilton & Associates 0.88 (8)9.51 (4)2.32 (90)8.87 (28)15.91 (7)N/A N/A N/A N/A Barclays Intermediate Aggregate Index -0.71 (78)4.31 (85)4.22 (21)7.52 (78)9.69 (82)4.16 (35)5.33 (69)3.84 (60)2.23 (100) IM U.S. Intermediate Duration (SA+CF) Median -0.24 5.57 3.58 8.2711.46 3.22 5.49 3.9210.39 Total Global Fixed Income Templeton Global Bond Adv (FBNRX)3.44 (3)13.25 (7)N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -4.60 (85)3.29 (97)4.61 (8)4.99 (95)13.78 (51)5.90 (6)8.69 (30)2.23 (56)3.02 (74) IM Global Fixed Income (MF) Median -1.52 7.34 1.56 7.8213.91-1.47 7.29 2.58 5.11 Total Real Estate American Core Realty Fund 12.27 (71)11.57 (67)16.11 (75)2.72 (76)-32.96 (39)4.98 (100)16.31 (82)N/A N/A NCREIF Fund Index-Open End Diversified Core (EW)12.47 (68)11.77 (66)18.03 (42)6.14 (50)-36.09 (53)3.73 (100)17.84 (59)17.49 (57)18.91 (72) IM U.S. Open End Private Real Estate (SA+CF) Median13.0912.9016.62 6.09-35.2720.7118.5318.1719.98 Intercontinental Real Estate 18.19 (10)13.33 (43)15.80 (79)N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core (EW)12.47 (68)11.77 (66)18.03 (42)6.14 (50)-36.09 (53)3.73 (47)17.84 (59)17.49 (57)18.91 (72) IM U.S. Open End Private Real Estate (SA+CF) Median13.0912.9016.62 6.09-35.27 3.4718.5318.1719.98 Returns for periods greater than 1 yr. are annualized. Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present. Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present. 25 Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund Comparative Performance -28.00 -22.00 -16.00 -10.00 -4.00 2.00 8.00 14.00 20.00 26.00 32.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Total Fund15.11 (12)18.93 (30)0.08 (56)8.61 (83)0.00 (67)-11.96 (28)Ł Total Policy14.70 (16)19.99 (14)2.54 (13)9.32 (69)-1.86 (82)-14.02 (55)Ł Median12.5517.930.299.981.32-13.67 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 23.00 26.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Total Fund3.88 (23)13.69 (13)19.39 (12)17.24 (7)11.38 (12)13.70 (16)13.25 (21)Ł Total Policy3.96 (19)12.51 (28)18.27 (24)16.28 (13)11.95 (5)14.67 (3)14.10 (6)Ł Median3.5611.3516.9614.5810.0412.7512.58 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Total Fund 2.41 (14)6.87 (8)5.02 (45)1.15 (6)6.83 (8)1.44 (62) Total Policy 1.84 (37)6.27 (24)5.12 (42)1.19 (6)6.76 (10)1.00 (77) All Public Plans-Total Fund Median 1.70 5.60 4.91 0.09 5.47 1.72 As of June 30, 2014 Performance Review Total Fund NONE 26 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Total Fund20 4 (20%)2 (10%)11 (55%)3 (15%)Ł Total Policy20 10 (50%)1 (5%)3 (15%)6 (30%)Ł Over Performance Under Performance Earliest Date Latest Date -12.0 -6.0 0.0 6.0 12.0 18.0 24.0 To t a l F u n d ( % ) -12.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.024.0 Total Policy (%) Over Performance Under Performance 9.45 10.08 10.71 11.34 11.97 12.60 R e t u r n ( % ) 9.20 9.43 9.66 9.89 10.12 10.35 10.5810.81 Risk (Standard Deviation %) Return Standard Deviation Total Fund 11.38 10.50Ł Total Policy 11.95 9.48Ł Median 10.04 9.65¾ 12.00 12.50 13.00 13.50 14.00 14.50 R e t u r n ( % ) 9.8 9.9 Risk (Standard Deviation %) Return Standard Deviation Total Fund 13.25 9.86Ł Total Policy 14.10 9.86Ł Median 12.58 9.86¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Total Fund 1.59 102.86 122.86 -1.57 -0.26 1.09 1.10 6.65 Total Policy 0.00 100.00 100.00 0.00 N/A 1.25 1.00 5.53 90 Day U.S. Treasury Bill 9.49 0.31 -0.24 0.06 -1.25 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Total Fund 1.88 96.70 105.14 -0.51 -0.40 1.32 0.98 5.59 Total Policy 0.00 100.00 100.00 0.00 N/A 1.40 1.00 5.18 90 Day U.S. Treasury Bill 9.86 0.45 -0.38 0.09 -1.40 N/A 0.00 0.00 As of June 30, 2014 Performance Review Total Fund NONE 27 Pa g e I n t e n t i o n a l l y L e f t B l a n k 28 Peer Group Analysis - IM U.S. Multi-Cap Core Equity (MF) Comparative Performance -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 VG TSMIN/AN/AN/AN/AN/AN/AŁ VG TSM Index21.50 (62)30.28 (15)0.71 (20)11.16 (29)-6.03 (62)-21.19 (29)Ł Median22.8625.60-2.239.59-4.84 -22.99 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR VG TSMI4.86 (31)17.79 (30)25.20 (40)N/AN/AN/AN/AŁ VG TSM Index4.87 (30)17.80 (30)25.21 (40)23.31 (48)16.48 (25)20.33 (22)19.44 (24)Ł Median4.3716.4024.4723.1914.7518.5817.75 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 VG TSMI 2.05 (43)10.08 (31)6.30 (63)2.77 (43)N/A N/A VG TSM Index 2.04 (44)10.09 (30)6.29 (64)2.76 (43)11.02 (49)0.19 (77) IM U.S. Multi-Cap Core Equity (MF) Median 1.90 9.42 6.85 2.54 10.98 1.43 Performance Review (Fiscal Years) As of June 30, 2014 VG TSMI NONE 29 Peer Group Analysis - IM U.S. Large Cap Core Equity (SA+CF) Comparative Performance -50.00 -40.00 -30.00 -20.00 -10.00 0.00 10.00 20.00 30.00 40.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Dana LC19.62 (62)31.58 (21)-0.89 (72)10.10 (42)-13.66 (97)-12.23 (6)Ł Dana Index19.34 (63)30.20 (45)0.95 (54)8.90 (59)-10.62 (92)-21.56 (62)Ł Median20.6729.721.169.45-5.78-20.48 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Dana LC5.54 (24)20.83 (16)28.09 (19)23.30 (49)16.60 (52)20.07 (55)18.94 (50)Ł Dana Index5.23 (33)18.40 (50)24.61 (65)22.59 (64)16.58 (53)19.59 (70)19.05 (47)Ł Median4.8618.3625.6123.2016.6220.2618.91 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Dana LC 3.53 (13)10.58 (44)6.01 (50)2.26 (66)11.16 (37)-0.74 (75) Dana Index 1.81 (63)10.51 (48)5.24 (71)2.91 (46)10.61 (56)-0.38 (61) IM U.S. Large Cap Core Equity (SA+CF) Median 2.06 10.42 5.99 2.78 10.70 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Dana LC NONE 30 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Dana LC20 0 (0%)6 (30%)9 (45%)5 (25%)Ł Dana Index20 0 (0%)3 (15%)7 (35%)10 (50%)Ł Over Performance Under Performance Earliest Date Latest Date -20.0 -10.0 0.0 10.0 20.0 30.0 D a n a L C ( % ) -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Dana Index (%) Over Performance Under Performance 16.56 16.58 16.60 16.62 16.64 R e t u r n ( % ) 14.04 14.40 14.76 15.12 15.48 15.84 16.20 Risk (Standard Deviation %) Return Standard Deviation Dana LC 16.60 15.88Ł Dana Index 16.58 14.37Ł Median 16.62 15.11¾ 18.84 18.90 18.96 19.02 19.08 19.14 R e t u r n ( % ) 15.10 15.15 15.20 15.25 15.30 15.35 15.40 Risk (Standard Deviation %) Return Standard Deviation Dana LC 18.94 15.18Ł Dana Index 19.05 15.15Ł Median 18.91 15.33¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dana LC 2.08 102.62 105.78 -0.64 0.05 1.27 1.05 7.47 Dana Index 0.00 100.00 100.00 0.00 N/A 1.33 1.00 6.96 90 Day U.S. Treasury Bill 12.09 0.14 -0.18 0.06 -1.33 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dana LC 2.56 97.88 95.80 0.71 -0.06 1.39 0.95 7.30 Dana Index 0.00 100.00 100.00 0.00 N/A 1.36 1.00 7.54 90 Day U.S. Treasury Bill 13.47 0.21 -0.23 0.09 -1.36 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Dana LC NONE 31 Pa g e I n t e n t i o n a l l y L e f t B l a n k 32 Peer Group Analysis - IM U.S. All Cap Core Equity (SA+CF) Comparative Performance -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 65.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 FiduciaryN/AN/AN/AN/AN/AN/AŁ R300021.60 (77)30.20 (31)0.55 (62)10.96 (53)-6.42 (60)-21.52 (63)Ł Median23.8627.380.9811.05-6.06-21.11 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Fiduciary5.78 (25)16.83 (66)N/A N/A N/A N/A N/AŁ R30004.87 (45)17.75 (49)25.22 (66)23.33 (68)16.46 (59)20.24 (63)19.33 (62)Ł Median4.8117.6126.5624.1816.6620.5819.48 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Fiduciary 2.06 (43)8.21 (87)N/A N/A N/A N/A R3000 1.97 (46)10.10 (52)6.35 (78)2.69 (52)11.07 (61)0.25 (70) IM U.S. All Cap Core Equity (SA+CF) Median 1.84 10.11 7.46 2.70 11.23 0.74 Performance Review (Fiscal Years) As of June 30, 2014 Fiduciary NONE 33 Peer Group Analysis - IM U.S. Small Cap Core Equity (SA+CF) Comparative Performance -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 65.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Dana SC31.48 (57)39.20 (7)3.82 (15)15.86 (35)-13.06 (84)-21.93 (79)Ł R200030.06 (71)31.91 (54)-3.53 (77)13.35 (72)-9.55 (66)-14.48 (25)Ł Median32.2632.35-0.2414.58-7.80-17.69 -10.00 -4.00 2.00 8.00 14.00 20.00 26.00 32.00 38.00 44.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Dana SC3.35 (32)16.54 (21)27.77 (34)27.98 (31)19.65 (12)25.49 (9)24.19 (15)Ł R20002.05 (63)12.19 (72)23.64 (70)23.92 (75)14.57 (75)19.89 (80)20.21 (80)Ł Median2.5514.4125.4526.5016.5421.9121.92 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Dana SC 1.29 (51)11.33 (22)9.64 (69)3.96 (50)14.86 (10)0.43 (93) R2000 1.12 (57)8.72 (78)10.21 (56)3.08 (60)12.39 (59)1.85 (69) IM U.S. Small Cap Core Equity (SA+CF) Median 1.32 9.73 10.45 3.96 12.77 2.40 Performance Review (Fiscal Years) As of June 30, 2014 Dana SC NONE 34 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Dana SC20 9 (45%)1 (5%)4 (20%)6 (30%)Ł R200020 0 (0%)2 (10%)9 (45%)9 (45%)Ł Over Performance Under Performance Earliest Date Latest Date -20.0 0.0 20.0 40.0 D a n a S C ( % ) -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 R2000 (%) Over Performance Under Performance 12.00 14.00 16.00 18.00 20.00 22.00 R e t u r n ( % ) 18.80 19.00 19.20 19.40 19.60 Risk (Standard Deviation %) Return Standard Deviation Dana SC 19.65 19.42Ł R2000 14.57 18.96Ł Median 16.54 19.34¾ 18.00 20.00 22.00 24.00 26.00 R e t u r n ( % ) 18.36 18.45 18.54 18.63 18.72 18.81 Risk (Standard Deviation %) Return Standard Deviation Dana SC 24.19 18.36Ł R2000 20.21 18.72Ł Median 21.92 18.48¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dana SC 4.45 105.16 82.00 4.92 0.99 1.15 0.97 9.41 R2000 0.00 100.00 100.00 0.00 N/A 0.90 1.00 10.02 90 Day U.S. Treasury Bill 16.74 0.10 -0.17 0.06 -0.90 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dana SC 4.41 97.54 76.37 5.13 0.70 1.37 0.90 9.06 R2000 0.00 100.00 100.00 0.00 N/A 1.11 1.00 10.41 90 Day U.S. Treasury Bill 18.08 0.16 -0.19 0.09 -1.11 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Dana SC NONE 35 Peer Group Analysis - IM International Large Cap Value Equity (SA+CF) Comparative Performance -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 RBC27.45 (16)24.65 (3)-8.87 (57)12.31 (10)7.72 (39)-29.87 (70)Ł MSCI ACW16.98 (82)15.04 (50)-10.42 (70)8.00 (36)6.43 (47)-29.97 (70)Ł Median22.6315.01-8.414.956.01-27.38 -10.00 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR RBC2.56 (86)19.33 (4)29.91 (8)30.08 (3)14.31 (6)19.29 (4)17.60 (6)Ł MSCI ACW5.25 (24)10.99 (69)22.27 (66)18.13 (83)6.21 (81)11.77 (78)11.59 (71)Ł Median4.1811.7424.0321.118.6613.3412.72 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 RBC 4.13 (6)11.73 (1)8.86 (78)0.67 (34)8.77 (2)6.92 (34) MSCI ACW 0.61 (65)4.81 (83)10.17 (59)-2.90 (89)3.27 (69)5.89 (63) IM International Large Cap Value Equity (SA+CF) Median 1.16 6.11 10.79 0.03 4.19 6.26 Performance Review (Fiscal Years) As of June 30, 2014 RBC NONE 36 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count RBC 20 12 (60%)4 (20%)3 (15%)1 (5%)Ł MSCI ACW20 0 (0%)8 (40%)7 (35%)5 (25%)Ł Over Performance Under Performance Earliest Date Latest Date -20.0 -10.0 0.0 10.0 20.0 30.0 R B C ( % ) -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.030.0 MSCI ACW (%) Over Performance Under Performance 3.00 6.00 9.00 12.00 15.00 18.00 R e t u r n ( % ) 15.84 16.50 17.16 17.82 18.48 19.14 19.80 Risk (Standard Deviation %) Return Standard Deviation RBC 14.31 19.23Ł MSCI ACW 6.21 16.44Ł Median 8.66 16.54¾ 10.00 12.00 14.00 16.00 18.00 20.00 R e t u r n ( % ) 17.10 17.28 17.46 17.64 17.82 18.00 18.1818.36 Risk (Standard Deviation %) Return Standard Deviation RBC 17.60 18.08Ł MSCI ACW 11.59 17.62Ł Median 12.72 17.33¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk RBC 5.56 121.95 89.22 7.76 1.37 0.86 1.01 11.25 MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.45 1.00 11.58 90 Day U.S. Treasury Bill 16.32 0.14 -0.11 0.06 -0.45 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk RBC 6.49 106.98 80.49 6.23 0.82 1.04 0.94 9.75 MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.74 1.00 10.68 90 Day U.S. Treasury Bill 16.73 0.19 -0.21 0.09 -0.74 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 RBC NONE 37 Peer Group Analysis - IM International Multi-Cap Core Equity (MF) Comparative Performance -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 M & N20.93 (49)16.04 (36)-12.51 (73)2.52 (83)N/AN/AŁ MSCI ACW16.98 (81)15.04 (53)-10.42 (42)8.00 (22)6.43 (25)-29.97 (36)Ł Median20.8215.16-11.054.951.99-31.22 -4.00 0.00 4.00 8.00 12.00 16.00 20.00 24.00 28.00 32.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR M & N3.24 (69)10.22 (55)20.79 (55)19.38 (51)5.67 (74)11.73 (71)11.77 (45)Ł MSCI ACW5.25 (10)10.99 (38)22.27 (40)18.13 (61)6.21 (63)11.77 (69)11.59 (49)Ł Median3.9010.5121.3619.426.8912.5711.53 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 M & N 2.13 (9)4.54 (85)9.59 (66)-0.90 (51)5.15 (24)5.89 (67) MSCI ACW 0.61 (40)4.81 (80)10.17 (50)-2.90 (83)3.27 (63)5.89 (67) IM International Multi-Cap Core Equity (MF) Median 0.39 5.85 10.14 -0.88 3.91 6.60 Performance Review (Fiscal Years) As of June 30, 2014 Manning & Napier NONE 38 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count M & N 9 0 (0%)1 (11%)7 (78%)1 (11%)Ł MSCI ACW20 9 (45%)5 (25%)5 (25%)1 (5%)Ł Over Performance Under Performance Earliest Date Latest Date -4.0 0.0 4.0 8.0 12.0 M & N ( % ) -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 MSCI ACW (%) Over Performance Under Performance 5.20 5.60 6.00 6.40 6.80 7.20 R e t u r n ( % ) 15.54 15.91 16.28 16.65 17.02 17.39 17.7618.13 Risk (Standard Deviation %) Return Standard Deviation M & N 5.67 17.61Ł MSCI ACW 6.21 16.31Ł Median 6.89 16.06¾ 11.43 11.52 11.61 11.70 11.79 11.88 R e t u r n ( % ) 16.40 16.81 17.22 17.63 18.04 18.45 18.86 Risk (Standard Deviation %) Return Standard Deviation M & N 11.77 18.49Ł MSCI ACW 11.59 16.73Ł Median 11.53 16.98¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk M & N 4.42 101.75 104.02 -0.62 -0.06 0.40 1.05 12.58 MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.45 1.00 11.58 90 Day U.S. Treasury Bill 16.32 0.14 -0.11 0.06 -0.45 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk M & N 5.12 106.79 108.95 -0.31 0.09 0.69 1.06 12.06 MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.74 1.00 10.68 90 Day U.S. Treasury Bill 16.73 0.19 -0.21 0.09 -0.74 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Manning & Napier NONE 39 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) Comparative Performance -12.00 -8.00 -4.00 0.00 4.00 8.00 12.00 16.00 20.00 24.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Agincourt-1.40 (61)6.96 (43)4.92 (68)9.55 (37)14.76 (18)N/AŁ BC Agg-1.68 (82)5.16 (91)5.26 (49)8.16 (87)10.56 (80)3.65 (32)Ł Median-1.226.615.269.2012.322.56 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Agincourt2.20 (44)4.24 (48)5.09 (39)2.50 (49)4.24 (52)4.37 (50)5.62 (58)Ł BC Agg2.04 (67)3.78 (75)4.37 (74)1.81 (80)3.66 (86)3.72 (87)4.85 (87)Ł Median2.144.184.852.454.314.375.72 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Agincourt 1.88 (73)0.11 (50)0.81 (20)-2.46 (58)-0.07 (79)0.34 (61) BC Agg 1.84 (78)-0.14 (78)0.57 (64)-2.32 (38)-0.12 (88)0.21 (83) IM U.S. Broad Market Core Fixed Income (SA+CF) Median 2.03 0.09 0.63 -2.42 0.10 0.46 Performance Review (Fiscal Years) As of June 30, 2014 Agincourt NONE 40 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Agincourt12 0 (0%)2 (17%)10 (83%)0 (0%)Ł BC Agg20 0 (0%)0 (0%)5 (25%)15 (75%)ŁOver Performance Earliest Date Latest Date 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Ag i n c o u r t ( % ) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.012.0 BC Agg (%) Over Performance Under Performance 3.30 3.60 3.90 4.20 4.50 R e t u r n ( % ) 2.72 2.76 2.80 2.84 2.88 2.92 2.96 3.00 Risk (Standard Deviation %) Return Standard Deviation Agincourt 4.24 2.80Ł BC Agg 3.66 2.95Ł Median 4.31 2.90¾ 4.64 4.93 5.22 5.51 5.80 6.09 R e t u r n ( % ) 3.04 3.08 3.12 3.16 3.20 3.24 3.28 3.323.36 Risk (Standard Deviation %) Return Standard Deviation Agincourt 5.62 3.10Ł BC Agg 4.85 3.15Ł Median 5.72 3.30¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Agincourt 0.70 109.45 99.37 0.57 0.80 1.47 1.00 1.59 BC Agg 0.00 100.00 100.00 0.00 N/A 1.31 1.00 1.54 90 Day U.S. Treasury Bill 2.73 0.74 -0.66 0.06 -1.31 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Agincourt 1.13 114.60 112.31 0.16 0.66 1.63 1.12 1.90 BC Agg 0.00 100.00 100.00 0.00 N/A 1.66 1.00 1.50 90 Day U.S. Treasury Bill 2.82 1.08 -0.88 0.09 -1.66 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Agincourt NONE 41 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) Comparative Performance -8.00 -4.00 0.00 4.00 8.00 12.00 16.00 20.00 24.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 GHA0.88 (8)9.51 (4)2.32 (90)8.87 (28)15.91 (7)N/AŁ BC Int Agg-0.71 (78)4.31 (85)4.22 (21)7.52 (78)9.69 (82)4.16 (35)Ł Median-0.245.573.588.2711.463.22 -1.20 -0.25 0.70 1.65 2.60 3.55 4.50 5.45 6.40 7.35 8.30 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR GHA1.70 (21)4.62 (10)5.59 (10)4.31 (7)4.85 (8)5.07 (8)6.43 (11)Ł BC Int Agg1.62 (28)2.70 (57)3.48 (55)1.66 (74)2.86 (77)3.14 (77)4.23 (76)Ł Median1.392.793.562.243.343.514.70 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 GHA 1.77 (13)1.08 (6)0.93 (17)-1.70 (44)0.67 (13)1.00 (9) Barclays Int Agg 1.20 (50)-0.14 (92)0.76 (41)-1.78 (53)0.15 (91)0.18 (85) IM U.S. Intermediate Duration (SA+CF) Median 1.20 0.20 0.72 -1.75 0.34 0.40 Performance Review (Fiscal Years) As of June 30, 2014 GHA NONE 42 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count GHA 13 12 (92%)1 (8%)0 (0%)0 (0%)Ł BC Int Agg20 0 (0%)0 (0%)13 (65%)7 (35%)ŁOver Performance Earliest Date Latest Date 2.0 4.0 6.0 8.0 10.0 G H A ( % ) 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.010.0 Barclays Int Agg (%) Over Performance Under Performance 2.07 2.76 3.45 4.14 4.83 5.52 R e t u r n ( % ) 1.80 2.00 2.20 2.40 2.60 2.80 Risk (Standard Deviation %) Return Standard Deviation GHA 4.85 2.56Ł BC Int Agg 2.86 2.00Ł Median 3.34 1.99¾ 3.75 4.50 5.25 6.00 6.75 7.50 R e t u r n ( % ) 2.20 2.40 2.60 2.80 3.00 3.20 3.40 Risk (Standard Deviation %) Return Standard Deviation GHA 6.43 3.11Ł BC Int Agg 4.23 2.38Ł Median 4.70 2.62¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk GHA 2.35 152.45 122.25 2.07 0.83 1.55 0.96 1.65 Barclays Int Agg 0.00 100.00 100.00 0.00 N/A 1.38 1.00 1.11 90 Day U.S. Treasury Bill 2.01 0.97 -0.97 0.06 -1.38 N/A 0.00 0.01 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk GHA 2.38 137.26 99.42 2.06 0.89 1.87 1.02 1.77 Barclays Int Agg 0.00 100.00 100.00 0.00 N/A 1.81 1.00 1.16 90 Day U.S. Treasury Bill 2.26 1.29 -1.20 0.08 -1.81 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 GHA NONE 43 Pa g e I n t e n t i o n a l l y L e f t B l a n k 44 Peer Group Analysis - IM International Fixed Income (MF) Comparative Performance -16.00 -10.00 -4.00 2.00 8.00 14.00 20.00 26.00 32.00 38.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Templeton GB3.44 (8)13.25 (5)N/AN/AN/AN/AŁ Citi WGB-4.60 (62)3.29 (90)4.61 (6)4.99 (64)13.78 (71)5.90 (1)Ł Median-3.386.511.706.6616.13-0.05 -6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Templeton GB2.71 (32)6.43 (19)7.52 (42)7.72 (7)N/AN/AN/AŁ Citi WGB2.27 (78)3.86 (89)6.85 (59)1.02 (84)1.57 (64)3.74 (81)3.60 (78)Ł Median2.565.197.203.202.345.045.16 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Templeton GB 0.86 (90)2.74 (6)1.03 (71)-2.73 (16)1.38 (9)3.83 (6) Citi WGB 2.66 (33)-1.09 (91)2.88 (40)-2.97 (23)-2.77 (55)-1.71 (82) IM International Fixed Income (MF) Median 2.39 0.14 1.93 -3.47 -2.63 0.19 Performance Review (Fiscal Years) As of June 30, 2014 Templeton GB NONE 45 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) Comparative Performance -85.00 -70.00 -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 American12.27 (71)11.57 (67)16.11 (75)2.72 (76)-32.96 (39)4.98 (35)Ł NCREIF ODCE13.04 (51)11.61 (67)18.27 (41)6.97 (45)-35.19 (50)3.18 (52)Ł Median13.0912.9016.626.09 -35.27 3.47 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR American2.79 (N/A)8.83 (N/A)12.53 (N/A)11.95 (N/A)12.05 (N/A)13.42 (N/A)8.00 (N/A)Ł NCREIF ODCE2.93 (N/A)8.87 (N/A)12.75 (N/A)12.46 (N/A)12.45 (N/A)14.40 (N/A)10.00 (N/A)Ł Median N/AN/AN/AN/AN/AN/AN/A 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 American 3.20 (35)2.59 (75)3.40 (55)3.36 (66)2.49 (69)2.50 (52) NCREIF ODCE 2.52 (61)3.17 (52)3.56 (51)3.86 (52)2.68 (61)2.35 (60) IM U.S. Open End Private Real Estate (SA+CF) Median 2.74 3.22 3.58 3.88 3.14 2.51 Performance Review (Fiscal Years) As of June 30, 2014 American NONE 46 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count American 19 0 (0%)7 (37%)6 (32%)6 (32%)Ł NCREIF ODCE19 0 (0%)12 (63%)7 (37%)0 (0%)Ł Over Performance Under Performance Earliest Date Latest Date -20.0 -10.0 0.0 10.0 20.0 Am e r i c a n ( % ) -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.024.0 NCREIF ODCE (%) Over Performance Under Performance 11.80 12.00 12.20 12.40 12.60 R e t u r n ( % ) 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 Risk (Standard Deviation %) Return Standard Deviation American 12.05 0.64Ł NCREIF ODCE 12.45 0.89Ł Median N/A N/A¾ 7.59 8.28 8.97 9.66 10.35 11.04 R e t u r n ( % ) 5.55 5.70 5.85 6.00 6.15 6.30 6.45 6.606.75 Risk (Standard Deviation %) Return Standard Deviation American 8.00 6.52Ł NCREIF ODCE 10.00 5.75Ł Median N/A N/A¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk American 0.66 96.92 N/A 5.82 -0.56 17.78 0.49 0.00 NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 13.26 1.00 0.00 90 Day U.S. Treasury Bill 0.89 0.48 N/A 0.11 -13.26 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk American 1.38 89.87 128.27 -2.90 -1.32 1.21 1.11 4.71 NCREIF ODCE 0.00 100.00 100.00 0.00 N/A 1.69 1.00 3.62 90 Day U.S. Treasury Bill 5.76 0.62 -0.81 0.10 -1.69 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 American NONE 47 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF) Comparative Performance -85.00 -70.00 -55.00 -40.00 -25.00 -10.00 5.00 20.00 35.00 50.00 R e t u r n Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Intercontinental18.19 (10)13.33 (43)15.80 (79)N/AN/AN/AŁ NCREIF ODCE13.04 (51)11.61 (67)18.27 (41)6.97 (45)-35.19 (50)3.18 (52)Ł Median13.0912.9016.626.09 -35.27 3.47 -1.00 2.00 5.00 8.00 11.00 14.00 17.00 20.00 R e t u r n QTRFYTD1 YR2 YR3 YR4 YR5 YR Intercontinental2.41 (N/A)9.89 (N/A)13.91 (N/A)15.54 (N/A)14.93 (N/A)N/AN/AŁ NCREIF ODCE2.93 (N/A)8.87 (N/A)12.75 (N/A)12.46 (N/A)12.45 (N/A)14.40 (N/A)10.00 (N/A)Ł Median N/AN/AN/AN/AN/AN/AN/A 1 Qtr Ending Mar-2014 1 Qtr Ending Dec-2013 1 Qtr Ending Sep-2013 1 Qtr Ending Jun-2013 1 Qtr Ending Mar-2013 1 Qtr Ending Dec-2012 Intercontinental 1.80 (87)5.40 (3)3.66 (44)4.35 (30)2.78 (59)6.31 (6) NCREIF ODCE 2.52 (61)3.17 (52)3.56 (51)3.86 (52)2.68 (61)2.35 (60) IM U.S. Open End Private Real Estate (SA+CF) Median 2.74 3.22 3.58 3.88 3.14 2.51 Performance Review (Fiscal Years) As of June 30, 2014 Intercontinental NONE 48 Peer Group Scattergram - 3 Years 3 Yr Rolling Under/Over Performance - 5 Years Peer Group Scattergram - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years Historical Statistics - 3 Years Historical Statistics - 5 Years 0.0 25.0 50.0 75.0 100.0R e t u r n P e r c e n t i l e R a n k 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 6/14 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Intercontinental3 1 (33%)2 (67%)0 (0%)0 (0%)Ł NCREIF ODCE19 0 (0%)12 (63%)7 (37%)0 (0%)ŁOver Performance Earliest Date Latest Date 12.0 13.0 14.0 15.0 16.0 I n t e r c o n t i n e n t a l ( % ) 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5 NCREIF ODCE (%) Over Performance Under Performance 11.90 12.75 13.60 14.45 15.30 16.15 R e t u r n ( % ) 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 Risk (Standard Deviation %) Return Standard Deviation Intercontinental 14.93 2.53Ł NCREIF ODCE 12.45 0.89Ł Median N/A N/A¾ 9.24 9.57 9.90 10.23 10.56 10.89 R e t u r n ( % ) 5.20 5.40 5.60 5.80 6.00 6.20 Risk (Standard Deviation %) Return Standard Deviation Intercontinental N/A N/AŁ NCREIF ODCE 10.00 5.75Ł Median N/A N/A¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Intercontinental 2.57 119.20 N/A 10.29 0.89 5.60 0.36 0.00 NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 13.26 1.00 0.00 90 Day U.S. Treasury Bill 0.89 0.48 N/A 0.11 -13.26 N/A 0.00 0.00 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A NCREIF ODCE 0.00 100.00 100.00 0.00 N/A 1.69 1.00 3.62 90 Day U.S. Treasury Bill 5.76 0.62 -0.81 0.10 -1.69 N/A 0.00 0.00 Performance Review (Fiscal Years) As of June 30, 2014 Intercontinental NONE 49 Total Fund Compliance:Yes No N/A Equity Compliance:Yes No N/A Fixed Income Compliance:Yes No N/A 50 Yes No N/A Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A 51 Pa g e I n t e n t i o n a l l y L e f t B l a n k 52 Total Fund Policy Allocation Mandate Weight (%) May-1998 S&P 500 Index 60.00 Barclays U.S. Gov't/Credit 35.00 Citigroup 3 Month T-Bill Index 5.00 Jan-2001 S&P 500 Index 65.00 Barclays U.S. Gov't/Credit 30.00 Citigroup 3 Month T-Bill Index 5.00 Apr-2003 S&P 500 Index 65.00 Barclays Intermediate U.S. Gov/Credit Index 30.00 Citigroup 3 Month T-Bill Index 5.00 Jul-2005 S&P 500 Index 55.00 Barclays Intermediate U.S. Gov/Credit Index 30.00 MSCI EAFE Index 10.00 Citigroup 3 Month T-Bill Index 5.00 Oct-2007 Russell 3000 Index 55.00 Barclays Intermediate Aggregate Index 30.00 MSCI EAFE Index 10.00 Citigroup 3 Month T-Bill Index 5.00 Jul-2008 Russell 3000 Index 55.00 Barclays Intermediate Aggregate Index 25.00 MSCI EAFE Index 10.00 NCREIF Property Index 10.00 Oct-2011 Russell 3000 Index 55.00 MSCI EAFE Index 10.00 Barclays Intermediate Aggregate Index 20.00 Citigroup World Government Bond 5.00 NCREIF Property Index 10.00 Allocation Mandate Weight (%) Jul-2013 Russell 3000 Index 55.00 MSCI AC World ex USA 10.00 Barclays Aggregate Index 10.00 Barclays Intermediate Aggregate Index 10.00 Citigroup World Government Bond 5.00 NCREIF Fund Index-Open End Diversified Core (EW)10.00 Citigroup 3 Month T-Bill Index 0.00 Benchmark History Investment Policy Benchmarks As of June 30, 2014 53 Total Equity Policy Allocation Mandate Weight (%) Jul-2008 MSCI EAFE Index 15.00 Russell 3000 Index 85.00 Oct-2011 MSCI EAFE Index 15.00 Russell 3000 Index 85.00 Jul-2013 Russell 3000 Index 85.00 MSCI AC World ex USA 15.00 Dana Custom Index Allocation Mandate Weight (%) Jul-2002 Russell 3000 Index 100.00 Jan-2008 Russell 1000 Value Index 100.00 Jan-2011 S&P 500 Index 100.00 Vanguard Total Stock Market Index Allocation Mandate Weight (%) Jun-2003 MSCI US Broad Market Index 100.00 Jun-2013 CRSP U.S. Total Market TR Index 100.00 Total Domestic Equity Policy Allocation Mandate Weight (%) May-1998 S&P 500 Index 100.00 Jul-2005 Russell 3000 Index 100.00 Oct-2011 Russell 3000 Index 100.00 Total International Equity Policy Allocation Mandate Weight (%) May-2007 MSCI EAFE Index 100.00 Jul-2013 MSCI AC World ex USA 100.00 Benchmark History Investment Policy Benchmarks As of June 30, 2014 Prior to 6/1/2011, the data and inception dates for Dana LC and Dana SC were provided by the manager. 54 Total Real Estate Policy Allocation Mandate Weight (%) Jul-2006 NCREIF Property Index 100.00 Oct-2011 NCREIF Property Index 100.00 Jul-2013 NCREIF Fund Index-Open End Diversified Core (EW)100.00 Total Fixed Income Policy Allocation Mandate Weight (%) May-1998 Barclays U.S. Gov't/Credit 100.00 Apr-2003 Barclays Intermediate U.S. Gov/Credit Index 100.00 Oct-2007 Barclays Intermediate Aggregate Index 100.00 Oct-2011 Barclays Intermediate Aggregate Index 80.00 Citigroup World Government Bond 20.00 Jul-2013 Barclays Aggregate Index 40.00 Barclays Intermediate Aggregate Index 40.00 Citigroup World Government Bond 20.00 Total Domestic Fixed Income Policy Allocation Mandate Weight (%) May-1998 Barclays U.S. Gov't/Credit 100.00 Apr-2003 Barclays Intermediate U.S. Gov/Credit Index 100.00 Oct-2007 Barclays Intermediate Aggregate Index 100.00 Oct-2011 Barclays Intermediate Aggregate Index 100.00 Jul-2013 Barclays Aggregate Index 50.00 Barclays Intermediate Aggregate Index 50.00 Benchmark History Investment Policy Benchmarks As of June 30, 2014 Prior to 6/1/2011, the data and inception dates for Dana LC and Dana SC were provided by the manager. 55 Report Statistics Definitions and Descriptions A c t i v e R e t u r n - Ar i t h m e t i c d i f f e r e n c e b e t w e e n t h e m a n a g e r ’ s p e r f o r m a n c e a n d t h e d e s i g n a t e d b e n c h m a r k r e t u r n o v er a s p e c i f i e d t i m e p e r i o d . A l p h a - A m e a s u r e o f t h e d i f f e r e n c e b e t w e e n a p o r t f o li o ' s a c t u a l p e r f o r m a n c e a n d i t s e x p e c t e d r e tu r n b a s e d o n i t s l e v e l o f r i s k a s d e t e rmined by beta. It determines the portfolio's no n - s y s t e m i c r e t u r n , o r i t s h i s t o r i c a l p e r f o r m a n ce n o t e x p l a i n e d b y m o v e m e n t s o f t h e m a r k e t . B e t a - A m e a s u r e o f t h e s e n s i t i v i t y o f a p o r t f o l i o t o t h e m o v e m e n t s i n th e m a r k e t . I t i s a m e a s u r e o f th e p o r t f o l i o ' s s y s t e m a t i c r i s k . C o n s i s t e n c y - Th e p e r c e n t a g e o f q u a r t e r s t h a t a p r o d u c t a c h i e v e d a r a t e o f r e t u rn h i g h e r t h a n t h a t o f i t s b e n c h m ar k . H i g h e r c o n s i s t e n c y i n d i c ates the manager has contributed more to the pr o d u c t ’ s p e r f o r m a n c e . D o w n M a r k e t C a p t u r e - Th e r a t i o o f a v e r a g e p o r t f o l i o p e r f o r m a n c e o v e r t h e d e s i g n a t e d b e n ch m a r k d u r i n g p e r i o d s o f n e g a t i v e r e t u r n s . A l o w e r v a l u e i n d i cates better product performance D o w n s i d e R i s k - A m e a s u r e s i m i l a r t o s t a n d a r d d e v i a t i o n t h a t u t i l i z e s o n l y t h e n e g a t iv e m o v e m e n t s o f t h e r e t u r n s e r i e s . I t i s c a l c u l a t e d b y t a k in g t h e s t a n d a r d d e v i a t i o n o f t h e n e g a t i v e qu a r t e r l y s e t o f r e t u r n s . A h i g h e r f a c t o r i s i n d i c a t i v e o f a r i s k i e r p r o d u c t . E x c e s s R e t u r n - Ar i t h m e t i c d i f f e r e n c e b e t w e e n t h e m a n a g e r ’ s p e r f o r m a n c e a n d t h e r i s k - f r e e r e t u r n o v e r a s p e c i f i e d t i m e p e r i o d . E x c e s s R i s k - A m e a s u r e o f t h e s t a n d a r d d e v i a t i o n o f a p o r t f o l i o ' s p e r f o r m a n c e r e l a t i v e t o t h e r i s k f r e e r e t u r n . I n f o r m a t i o n R a t i o - Th i s c a l c u l a t e s t h e v a l u e - a d d e d c o n t r i b u t i o n o f th e m a n a g e r a n d i s d e r i v e d b y d i v i d i n g t h e a c t i ve r a t e o f r e t u r n o f t h e p o r t f o l i o b y the tracking error. The higher the In f o r m a t i o n R a t i o , t h e m o r e t h e m a n a g e r h a s a d d e d v a l u e t o t h e p o r t f o l i o . R - S q u a r e d - Th e p e r c e n t a g e o f a p o r t f o l i o ' s p e r f o r m a n c e t h a t c a n b e e x p l a i ne d b y t h e b e h a v i o r o f t h e a p p r o p r i a t e b e n c h m a r k . A h i g h R - S q u a r e d means the portfolio's performance has hi s t o r i c a l l y m o v e d i n t h e s a m e d i r e ct i o n a s t h e a p p r o p r i a t e b e n c h m a r k . R e t u r n - Co m p o u n d e d r a t e o f r e t u r n f o r t h e p e r i o d . S h a r p e R a t i o - Re p r e s e n t s t h e e x c e s s r a t e o f r e t u r n o v e r t h e r i s k f r e e r e t u r n d i v i d e d b y t h e s t a n d a r d d e v i a t i o n o f t h e e x c e s s r e t u r n . T h e r e s u lt i s a n a b s o l u t e r a t e o f r e t u r n p e r u n i t o f r i s k . A hi g h e r v a l u e d e m o n s t r a t e s b e t t e r h i s t or i c a l r i s k - a d j us t e d p e r f o r m a n c e . S t a n d a r d D e v i a t i o n - A s t a t i s t i c a l m e a s u r e o f t h e r a n g e o f a p o r t f o l i o ' s p e r f o r m a n c e. I t r e p r e s e n t s t h e v a r i a b i l i t y o f r e t u r n s a r o u n d t h e a v e r a g e r e tu r n o v e r a s p e c i f i e d t i m e p e r i o d . T r a c k i n g E r r o r - Th i s i s a m e a s u r e o f t h e s t a n d a r d d e v i a t i o n o f a p o r t f o l i o ' s r e t u r n s i n r e l a t i o n t o t h e p e r f o r m a n c e o f i t s d e s i g n a t e d m a r k e t b e n c h m a r k . T r e y n o r R a t i o - Si m i l a r t o S h a r p e r a t i o b u t u t i l i z e s b e t a r a t h e r t h a n e x c e s s r i sk a s d e t e r m i n e d b y s t a n d a r d d e v i a t i o n . I t i s c a l c u l a t e d b y t a k i ng t h e e x c e s s r a t e o f r e t u r n a b o v e t h e r i s k f r e e ra t e d i v i d e d b y b e t a t o d e r i v e t h e a b s o l u t e r a t e o f r e t u r n p e r u n i t o f r i s k . A h i g h e r v a l u e i n d i c a t e s a p r o d u c t h a s a c h i e v e d b e tt e r h i s t o r i c a l r i s k - adjusted performance. Up M a r k e t C a p t u r e - Th e r a t i o o f a v e r a g e p o r t f o l i o p e r f o r m a n c e o v e r t h e d e s i g n a t e d b e n ch m a r k d u r i n g p e r i o d s o f p o s i t i v e r e t u r n s . A h i g h e r v a l u e i n d icates better product performance. 56 Disclosures Th e B o g d a h n G r o u p c o m p i l e d t h i s r e p o r t f o r t h e s o l e u s e o f t h e c li e n t f o r w h i c h i t w a s p r e p a r e d . T h e B o g d a h n G r o u p i s r e s p o n s i b l e f o r e v a l u a t i n g t h e p e r f o r m a n c e r e s u l t s o f t h e T o t a l F u n d a l o n g w i t h t h e in v e s t m e n t a d v i s o r s b y c o m p a r i n g t h e i r p e r f o r m a n c e w i t h i n d i c e s a n d o t h e r r e l a t e d p e e r u n i v e r s e d a t a t h a t i s d e e m e d a p p r o p r i a t e . T h e B o g d a h n g r o u p u s e s t h e r e s u l t s f r o m this evaluation to make observations an d r e c o m m e n d a t i o n s t o t h e c l i e n t . Th e B o g d a h n G r o u p u s e s t i m e - w e i g h t e d c a l c u l a t io n s w h i c h a r e f o u n d e d o n s t a n d a r d s r e c o m m e n d e d b y t h e C F A I n s t i t u t e . T h e c a l c u l a ti o n s a n d v a l u e s s h o w n a r e b a s e d o n i n formation that is received from cu s t o d i a n s . T h e B o g d a h n G r o u p a n a l y z e s t r a n s a c t i on s a s i n d i c a t e d o n t h e c u s t o d i a n s t a t e m en t s a n d r e v i e w s t h e c u s t o d i a l m a r k e t va l u e s o f t h e p o r t f o l i o . A s a r e s u l t, t h i s p r o v i d e s T h e B o g d a h n G r o u p w i t h a re a s o n a b l e b a s i s t h a t t h e i n v e s t m e n t i n f o r m at i o n p r e s e n t e d i s f r e e f r o m m a t e r i a l m i s s t at e m e n t . T h i s m e t h o d o l o g y o f e v a l u a t i n g an d m e a s u r i n g p e r f o r m a n c e p r o v i d e s T h e Bogdahn Group with a practical foundation fo r o u r o b s e r v a t i o n s a n d r e c o m m e n d a t i o n s . N o t h i n g c a m e t o o u r a tt e n t i o n t h a t w o u l d c a u s e T h e B o g d a h n G r o u p t o b e l i e v e t h a t t h e i n f o r m a t i o n p r e s e n t e d i s s i g n i f i c a n t l y m i s s t a t e d . Th e s t r a t e g i e s l i s t e d m a y n o t b e s u i t a b l e f o r a l l i n v e s t o r s . W e b e l i e v e t h e i n f o r m a t i o n p r o v i d e d h e r e i s r e l i a b l e , b u t d o n o t wa r r a n t i t s a c c u r a c y o r c o m p l e t e n e s s . P a s t p e r f o r m a n c e i s n o t a n i n d i c a t i o n o f f u t u r e pe r f o r m a n c e . A n y i n f o r m a t i o n c o n t a i n e d i n t h i s r e p o r t i s f o r i n f o r m a t i o n a l p u r p o s e s o n l y a n d s h o u l d n o t b e c o n s t r u e d t o b e a n of f e r t o b u y o r s e l l a n y s e c u r i t i e s , i n v e s t m e n t c o n s u l t i n g , o r i n v e s t m e n t m a n a g e m e n t se r v i c e s . Ad d i t i o n a l i n f o r m a t i o n i n c l u d e d i n t h i s d o c um e n t m a y c o n t a i n d a t a p r o v i d e d b y f r o m in d e x d a t a b a s e s , p u b l i c e c o n o m i c s o u r c e s a n d t h e m a n a g e r s t h e m s e l v e s . Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y B a r c l a y s . B a r c l a y s I n d e x d a t a p r o v i d e d b y w a y o f B a r c l a y s L i v e . Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y St a n d a r d a n d P o o r ’ s . N o t h i n g c o n t a i n e d w i th i n a n y d o c u m e n t , a d v e r t i s e m e n t o r p r e s e n ta t i o n f r o m S & P I n d i c e s c o n s t i t u t e s a n o f f e r of services in jurisdictions where S& P I n d i c e s d o e s n o t h a v e t h e n e c e s s a r y l i c e n s e s . A l l i n f o r m a t i o n pr o v i d e d b y S & P I n d i c e s i s i m p e r s o n a l a n d i s n o t t a i l o r e d t o th e n e e d s o f a n y p e r s o n , e n t i t y o r g r o u p o f p e r s o n s . A n y r e t u r n s o r p e r f o r m a n c e pr o v i d e d w i t h i n a n y d o c u m e n t i s p r o v i d e d f o r i l l u s t r a t i v e p u r p o s es o n l y a n d d o e s n o t d e m o n s t r a t e a c tu a l p e r f o r m a n c e . P a s t p e r f o rm a n c e i s n o t a g u a r a n t e e o f f u t u r e i n v e s t m e n t r e s u l t s . Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y M S C I , I n c . C o p y r i g h t M S C I , 2 0 1 2 . U n p u b l i s h e d . A l l R i g h t s R e s e r v e d . T h i s i n f o r m a t io n m a y o n l y b e u s e d f o r y o u r i n t e r n a l u s e , m a y n o t b e r e p r o d u c e d o r re d i s s e m i n a t e d i n a n y f o r m a n d m a y n o t b e u s e d t o c r e a t e a n y f i n a n c i a l i n s t r u m e n t s o r p r o d u c t s o r a n y i n d i c e s . T h i s i n f o r m a t i o n i s p r o v i d e d o n a n “ a s i s ” b a s i s a n d t h e u s e r of this information assumes the entire ri s k o f a n y u s e i t m a y m a k e o r p e r m i t t o b e m a d e o f t h i s i n f o r m at i o n . N e i t h e r M S C I , a n y o f i t s a f f i l i a t e s o r a n y o t h e r p e r s o n in v o l v e d i n o r r e l a t e d t o c o m p i l i n g , c o m p u t i n g o r c r e a t i n g t h i s i n f o r m a t i o n m a k e s a n y ex p r e s s o r i m p l i e d w a r r a n t i e s o r r e p r e s e n t a t io n s w i t h r e s p e c t t o s u c h i n f o r m a t i o n o r t h e r e s u l t s t o b e o b t a i n e d b y t h e u s e t h e r eo f , a n d M S C I , i t s a f f i l i a t e s a n d e a c h s u c h o t her person hereby expressly disclaim all wa r r a n t i e s ( i n c l u d i n g , w i t h o u t l i m i t a t i o n , a l l w a r r a n t i e s o f o r ig i n a l i t y , a c c u r a c y , c o m p l e t e n e ss , t i m e l i n e s s , n o n - i n f r i n g e m e n t , m e r c h a n t a b i l i t y a n d f i t n e s s f o r a p a r t i c u l a r p u r p o s e ) w i t h r e s p e c t t o t h i s i n f o r m a t i o n . Wi t h o u t l i m i t i n g a n y o f t h e f o r e g o i n g , i n n o e v e n t s h a l l M S C I , a n y o f i t s a f f i l i a t e s o r a n y o t h e r p e r s o n i n v o l v e d i n o r r e l a t e d t o c o m p i l i n g , c o m p u t i n g o r c r e a t i n g t h i s i n f o r m ation have any liability for any direct, indirect, sp e c i a l , i n c i d e n t a l , p u n i t i v e , c o n s e q u e n t i a l o r a n y o t h e r d a m a g e s ( i n c l u d i n g , w i t h o u t l i m it a t i o n , l o s t p r o f i t s ) e v e n i f n o t i f i e d o f , o r i f i t m i g h t o t h e r w i s e h a v e a n t i c i p a t e d , t h e p o s s i b i l i t y o f s u c h d a m a g e s . Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y R u s s e l l I n v e s t m e n t G r ou p . R u s s e l l I n v e s t m e n t G r o u p i s t h e s o u r c e o w n e r o f t h e d a t a co n t a i n e d o r r e f l e c t e d i n t h i s m a t e r i al and all trademarks and copyrights related th e r e t o . T h e m a t e r i a l m a y c o n t a i n c o n f i d e n t i a l i n f o r m a t i o n a n d un a u t h o r i z e d u s e , d i s c l o s u r e , c o p y i n g , d i s s e m i n a t i o n o r r e d i s t r ib u t i o n i s s t r i c t l y p r o h i b i t e d . T h i s i s a u s er p r e s e n t a t i o n o f t h e data. Russell Investment Gr o u p i s n o t r e s p o n s i b l e f o r t h e f o r m a t t i n g o r c o n f i g u r a t i o n o f th i s m a t e r i a l o r f o r a n y i n a c c u r a c y i n p r e s e n t a t i o n t h e r e o f . Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y M o r n in g s t a r . A l l r i g h t s r e s e r v e d . U s e o f t h is c o n t e n t r e q u i r e s e x p e r t k n o w l e d g e . It i s t o b e u s e d b y s p e c i a l i s t i n s t i t u t i o n s o n ly. The information contained herein: (1) is pr o p r i e t a r y t o M o r n i n g s t a r a n d / o r i t s c o n t e n t p r o v i d e r s ; ( 2 ) m a y n o t b e c o p i e d , a d a p t e d o r d i s t r i b u t e d ; a n d ( 3 ) i s n o t w a r r a n t e d t o b e a c c u r a t e , c o m p l e t e o r t i m e l y . N e i t he r M o r n i n g s t a r n o r i t s c o n t e n t p r o v i d e r s a r e re s p o n s i b l e f o r a n y d a m a g e s o r l o s s e s a r i s i n g f r o m a n y u s e o f t h is i n f o r m a t i o n , e x c e p t w h e r e s u c h d a m a g e s o r l o s s e s c a n n o t b e l im i t e d o r e x c l u d e d b y l a w i n y o u r j u r i s d i c tion. Past financial performance is not gu a r a n t e e o f f u t u r e r e s u l t s . 57 PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MEETING OF AUGUST 6, 2014 BENEFIT APPROVALS APPLICATION FOR DISTRIBUTION OF SHARE ACCOUNT SHAWN REID Date of Hire: 01/15/1990 Date of Termination: 03/27/2014 Date of Birth: 01/29/1964 Type of Distribution: Partial Lump Sum-cash Total Gross Distribution: $25,000.00 Tax Withholding (20%): $ 5,000.00 Total Net Distribution: $20,00.00 Action: ______________________________ APPLICATIONS TO EXIT THE DROP JAMES KREIDLER Date of Birth: 05/26/1965 Date of Hire: 11/01/2013 DROP Entry Date: 02/01/2014 Date of Termination: 07/31/2014 Total Monthly Benefit: $7,035.64 Form Of Benefit: Life Annuity Action: ____________________________ JERRY BROWN Date of Birth: 07/19/1966 Date of Hire: 02/01/1989 DROP Entry Date: 02/01/2014 Date of Termination: 07/13/2014 Total Monthly Benefit: $5,704.86 Form Of Benefit: Life Annuity Action: ______________________________ Chairman________________________________ Secretary________________________________ Date______8/6/2014____________________ SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman♦ 100 Miracle Mile Howard S. Susskind Suite 300 Kenneth R. Harrison, Sr. Coral Gables, Florida 33134 D. Marcus Braswell, Jr. (305) 529-2801 Pedro A. Herrera Broward 327-2878 Noah Scott Warman♦ Toll Free 1-800-329-2122 Ivelisse Berio LeBeau Facsimile (305) 447-8115 Dustin L. Watkins Michael Gillman ♦Board Certified Labor & Employment Lawyer July 2, 2014 Board of Trustees City of Palm Beach Gardens Firefighters’ Pension Fund c/o Audrey Ross, Administrator The Pension Resource Center 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Re: Ch. 175 Share Account Payments to Eligible Members Dear Trustees: You have asked our opinion concerning the Palm Beach Gardens Firefighters’ Pension Fund’s (hereafter “Fund”) payout of individual member share accounts. It is our understanding that at their March 19, 2009 meeting, the Board formally authorized early partial payments of Ch. 175 Share Accounts for those who retire or terminate service (i.e. those payments made prior to the first valuation date of 9/30 after they terminate/separate from service). Such partial distributions were limited to 50% of a member’s respective account balance as of their termination date as a means of protecting Fund members in avoiding negative balances for such early payouts which may be followed by market losses. It is also our understanding that the City of Palm Beach Gardens ordinance was recently amended on May 2, 2013, to allow eligible members to delay distribution of their respective Share Accounts until the earlier of either, a date of their choosing after separation from service, or mandatory distribution age as set forth by the Internal Revenue Code. Based on the understandings set forth herein and the language of the governing ordinance, there are two potential interpretations that the Board of Trustees (“Board”) may reasonably follow in administering the Fund. First, the Board may interpret the verbiage to mean that member share accounts shall be made available for payment thirty days after the first applicable valuation date. Conversely, the Board may also interpret that the share accounts shall actually be paid thirty days after the first applicable valuation date. Due to the logistical unfeasibility of actually making the payments 30 days after the end of the fiscal year (i.e. 9/30) coupled with the language articulating that participants will elect when the balance in their share Board of Trustees City of Palm Beach Gardens Firefighters’ Pension Fund July 2, 2014 Page 2 accounts will be distributed, it would appear that the Board most reasonably may interpret the ordinance in accordance with the former where payment of share account balances shall be made available for payment thirty days after the first valuation date of 9/30 following termination or separation from service. Section 38-78 of the City of Palm Beach Gardens Code of Ordinances provides eligibility restrictions as well as payment of benefit provisions. Here, it states in relevant part: (5) Eligibility for benefits. Any member who terminates employment as a firefighter with the city, upon application filed with the board, shall be entitled to be paid the value of his individual member share account, subject to the following criteria: a. Retirement benefit. 1. A member shall be entitled to one hundred (100) percent of the value of his share account upon normal or early retirement pursuant to section 38-56. 2. Such payment shall be made as provided in subsection (6). b. Termination benefit. 1. In the event that a member's employment as a firefighter is terminated by reason other than retirement, death or disability, he shall be entitled to receive an amount equal to the vested portion of his share account balance. The vested portion shall be determined in accordance with the schedule in section 38-59, subsection (3). 2. Such payment shall be made as provided in subsection (6). c. Disability benefit. 1. In the event that a member is determined to be eligible for either an in-line of duty disability benefit pursuant to section 38-58, subsection (1) or a not-in-line of duty disability benefit pursuant to section 38-58, subsection (3), he shall be entitled to one hundred (100) percent of the value of his share account. 2. Such payment shall be made as provided in subsection (6). d. Death benefit. Board of Trustees City of Palm Beach Gardens Firefighters’ Pension Fund July 2, 2014 Page 3 1. In the event that a member dies while actively employed as a firefighter, one hundred (100) percent of the value of his share account shall be paid to his designated beneficiary as provided in section 38-61. (6) Payment of benefits. If a member terminates employment and is otherwise entitled to receive all or a portion of the balance in the member's share account, the member's share account shall be valued on the next valuation date as provided for in subsection (3) above, following termination of employment. Payment of the calculated share account balance or the vested portion thereof are payable not later than thirty (30) days following the valuation date and shall be paid in one (1) lump sum payment. No optional forms of payments shall be permitted. Participants shall elect when such distribution of the balance in their share accounts will take place. Elections for distributions shall be made to the board of trustees in writing in such a manner and form acceptable to the board. Notwithstanding, any payments to a member must comply with the minimum distribution requirements of the IRC 401(A)(9), and are subject to the requirements of section 38-65(2), e.g. payments must commence by age seventy and one-half (70½). All share account monies not paid out shall continue to be adjusted to reflect earnings and losses accordingly as provided for in section 38- 78(3)(b). (emphasis added) Sec. 38-78(3)(a)(2) of the Palm Beach Gardens Code provides a definition for “valuation date” by providing as follows: Effective October 1, 2000 (only as to funds received on or after the effective date of the ordinance adopting this section), the allocation method in subsection 3.a.1. above shall be discontinued and premium tax monies received on or after that date after the deduction of the two percent total compensation which commences in FY 2004, shall be allocated as provided for in this paragraph 2. All monies received from Chapter 175, Florida Statutes, premium tax rebates, including any supplemental payments, shall be allocated to individual member share accounts at the end of each fiscal year on September 30 (a "valuation date") in an amount determined as follows…(emphasis added) In keeping with the language in the ordinance and the feasibility involved in calculating net Share Account balances, having payments made available for payment 30 days subsequent to the first fiscal year end after separation from service appears to be the most reasonable interpretation of the ordinance. Notwithstanding, it may prove beneficial to request the City of Palm Beach Gardens’ legislature to amend the pension ordinance to Board of Trustees City of Palm Beach Gardens Firefighters’ Pension Fund July 2, 2014 Page 4 provide greater flexibility to the Board and Fund members in paying out the Ch. 175 Share Accounts. After discussion by the Board with input from its vendors (i.e. actuary, financial consultant, administrator), as per our standard protocol, we would draft a proposed amendment and submit to the City Attorney for possible enactment. Further, we would also recommend formalizing a policy and procedure with respect to the Share Accounts governing its administration going forward. This matter should also be placed on a future agenda as directed by the Chair for discussion by the Board. Please feel free to contact me directly should you have any questions or comments. I look forward to discussing this matter with you in the near future. Yours truly, PEDRO A. HERRERA PAH/jd Fi r m L o c a t i o n S i z e o f F i r m Ke y S t a f f fo r F u n d E x p e r i e n c e F e e FL Public Pension Clients Al b e r n i , C a b a l l e r o & Ca s t e l l a n o s , L L P Co r a l G a b l e s , F L 2 2 E m p l o y e e s Ne s t o r C a b a l l e r o An d r e w F i e r m a n Ya n n i c k N g e n d a h a y o 20 Y e a r s 12 Y e a r s 8 Y e a r s 9/ 3 0 / 2 0 1 4 A u d i t - $ 1 2 , 0 0 0 21 Ch e r r y , B e k a e r t Or l a n d o , F l 1 , 0 0 0 + E m p l o y e e s Ja m e s B u r d i c k Pe t e r A l f e l e Al i s a T r a i n Ri c h a r d C r a w f o r d 30 Y e a r s 13 Y e a r s 30 Y e a r s 1 Y e a r 9/ 3 0 / 2 0 1 4 A u d i t - $ 1 4 , 0 0 0 8 Da v i d s o n , J a m i e s o n & Cr i s t i n i , P L Du n e d i n , F L 1 2 E m p l o y e e s Ri c h a r d C r i s t i n i Jo h n D a v i d Je a n i n e B i t t i n g e r 38 Y e a r s 30 Y e a r s 20 Y e a r s 9/ 3 0 / 2 0 1 4 - $ 1 3 , 0 0 0 9/ 3 0 / 2 0 1 5 - $ 1 3 , 7 0 0 9/ 3 0 / 2 0 1 6 - $ 1 4 , 4 0 0 13 S I G o r d o n & C o m p a n y , P A Co r a l S p r i n g s , F L 6 E m p l o y e e s St e v e G o r d o n Ma r i a b e l D i a z 30 Y e a r s 25 Y e a r s 9/ 3 0 / 2 0 1 4 - $ 7 , 0 0 0 29 Go l d s t e i n , S c h e c t o r & K o c h Co r a l G a b l e s , F L 1 2 1 E m p l o y e e s Vi n c e n t C a r r o d e g u e s Cl e m e n t J o h n s Ro s a S a l u m 20 Y e a r s 20 Y e a r s 16 Y e a r s 9/ 3 0 / 2 0 1 4 - $ 1 4 , 0 0 0 35 Pa l m B e a c h G a r d e n s F i r e f i g h t e r s ' P e n s i o n F u n d RF P A u d i t o r C o m p a r i s o n OR I G I N A L CO N T R A C T Ac t u a r y 1 1 / 5 / 2 0 1 2 Ad m i n i s t r a t o r 8 / 2 4 / 2 0 0 0 At t o r n e y 1 1 / 1 9 / 2 0 0 1 Au d i t o r 9 / 3 0 / 2 0 1 2 cu r r e n t l y b e i n g r e v i e w e d Cu s t o d i a n 5 / 3 / 2 0 0 2 be i n g r e v i e w e d a t 7 / 7 / 1 4 m t g Co n s u l t a n t 1 1 / 2 0 / 2 0 0 0 3 y e a r f e e g u a r e n t e e DA T E O F L A S T BO A R D R E V I E W 5/ 7 / 2 0 1 4 Ch e r r y B e k a e r t ( C B ) SE R V I C E P R O V I D E R Fo s t e r & F o s t e r PA L M B E A C H G A R D E N S F I R E F I G H T E R S ' P E N S I O N F U N D Se r v i c e P r o v i d e r C o n t r a c t R e v i e w - M a y 2 0 1 4 9/ 3 0 / 2 0 1 3 3/ 1 0 / 2 0 1 4 2/ 1 / 2 0 1 1 Re s o u r c e C e n t e r s Su g a r m a n & S u s s k i n d 3/ 1 0 / 2 0 1 4 6/ 1 8 / 2 0 1 0 Re g i o n s B a n k Bo g d a h n G r o u p