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HomeMy WebLinkAboutAgenda Police Pension 092216 Agenda City of Palm Beach Gardens Police Officers’ Pension Fund MEETING OF SEPTEMBER 22, 2016 LOCATION: City Council Chambers’ 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9 AM 1. Call Meeting To Order 2. Roll Call: • Jay Spencer, Chairman • Marc Glass, Trustee • Greg Mull, Trustee • Brad Seidensticker, Trustee 3. Trustee Update 4. Salem Trust Company – Brad Rinsem & Karen Russo • Prime Money Market Account Changes 5. Investment Consultant Report – The Bogdahn Group (John McCann) 6. Investment Manager Report – Highland Capital (Steve Stack) 7. Attorney Report – KKJ&L (Bonni Jensen) • Chapter 185 State Money Update / CBA 8. Administrator Report – Resource Centers (Audrey Ross) • 9/30/2016 Audit Engagement Letter • 2016/2017 Administrative Budget • 2017 Meeting Dates • Ratification of Commercial General Liability Insurance Renewal (6/30/16- 6/30/17) 9. Approval of Minutes • June 1, 2016 Regular Meeting 10. Disbursements 11. Benefit Approvals 12. Financial Statements 13. Other Business • 9/30/2015 Chapter 112.664, F.S. Compliance Report 14. Public Comments 15. Adjourn Next Meeting Date: Scheduled for Thursday December 1, 2016 @ 9AM. PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s/he will need a record of the proceedings and for such purpose may need to ensure 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 The Pension Resource Center, LLC no later than four days prior to the meeting. CITY OF PALM BEACH GARDENS POLICE OFFICERS’ PENSION FUND Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2015 Funding Actuarial Valuation Report And the Plan’s Financial Reporting for the Year Ending September 30, 2015 TABLE OF CONTENTS Title Page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections 1. Using funding assumptions 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 CH. 112.664, Florida Statutes RESULTS 1 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30,2015 1. Total pension liability a. Service Cost 1,206,826$ b. Interest 6,504,741 c. Benefit Changes - d. Difference between actual & expected experience & Other (82,607) e. Assumption Changes 875,147 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Net Change in Total Pension Liability 5,206,602 i. Total Pension Liability - Beginning 90,998,913 j. Total Pension Liability - Ending 96,205,515$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 3,007,780$ b. Contributions - Employer (From State) 524,479 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 422,145 e. Net Investment Income 925,754 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Administrative Expense (116,088) i. Other - j. Net Change in Plan Fiduciary Net Position 1,466,565 k. Plan Fiduciary Net Position - Beginning 72,626,331 l. Plan Fiduciary Net Position - Ending 74,092,896$ 3. Net Pension Liability / (Asset)22,112,619 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 7.10% Mortality Table RP-2000 fully generational using Scale AA 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30,2015 1. Total pension liability a. Service Cost 1,206,826$ b. Interest 6,504,741 c. Benefit Changes - d. Difference between actual & expected experience & Other (82,607) e. Assumption Changes 875,147 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Net Change in Total Pension Liability 5,206,602 i. Total Pension Liability - Beginning 90,998,913 j. Total Pension Liability - Ending 96,205,515$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 3,007,780$ b. Contributions - Employer (From State) 524,479 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 422,145 e. Net Investment Income 925,754 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Administrative Expense (116,088) i. Other - j. Net Change in Plan Fiduciary Net Position 1,466,565 k. Plan Fiduciary Net Position - Beginning 72,626,331 l. Plan Fiduciary Net Position - Ending 74,092,896$ 3. Net Pension Liability / (Asset)22,112,619 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 7.10% Mortality Table RP-2000 fully generational using Scale AA 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30,2015 1. Total pension liability a. Service Cost 1,900,045$ b. Interest 5,801,757 c. Benefit Changes - d. Difference between actual & expected experience & Other (426,717) e. Assumption Changes - f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Net Change in Total Pension Liability 3,977,580 i. Total Pension Liability - Beginning 113,722,000 j. Total Pension Liability - Ending 117,699,580$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 3,007,780$ b. Contributions - Employer (From State) 524,479 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 422,145 e. Net Investment Income 925,754 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Administrative Expense (116,088) i. Other - j. Net Change in Plan Fiduciary Net Position 1,466,565 k. Plan Fiduciary Net Position - Beginning 72,626,331 l. Plan Fiduciary Net Position - Ending 74,092,896$ 3. Net Pension Liability / (Asset)43,606,684 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 5.10% Mortality Table RP-2000 fully generational using Scale AA 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30,2015 1. Total pension liability a. Service Cost 830,108$ b. Interest 6,940,826 c. Benefit Changes - d. Difference between actual & expected experience & Other (426,717) e. Assumption Changes - f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Net Change in Total Pension Liability 4,046,712 i. Total Pension Liability - Beginning 77,304,818 j. Total Pension Liability - Ending 81,351,530$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 3,007,780$ b. Contributions - Employer (From State) 524,479 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 422,145 e. Net Investment Income 925,754 f. Benefit Payments (3,297,505) g. Contribution Refunds - h. Administrative Expense (116,088) i. Other - j. Net Change in Plan Fiduciary Net Position 1,466,565 k. Plan Fiduciary Net Position - Beginning 72,626,331 l. Plan Fiduciary Net Position - Ending 74,092,896$ 3. Net Pension Liability / (Asset)7,258,634 Certain Key Assumptions Valuation Date 10/01/2014 Measurement Date 09/30/2015 Investment Return Assumption 9.10% Mortality Table RP-2000 fully generational using Scale AA 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using assumptions from the Plan's Latest Actuarial Valuation FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2016 60,083,405 3,963,922 5,270,513 58,776,814 2017 58,776,814 3,869,272 5,400,821 57,245,265 2018 57,245,265 3,758,178 5,557,830 55,445,613 2019 55,445,613 3,630,171 5,668,883 53,406,901 2020 53,406,901 3,486,802 5,747,080 51,146,623 2021 51,146,623 3,325,623 5,898,384 48,573,862 2022 48,573,862 3,143,354 6,036,002 45,681,214 2023 45,681,214 2,940,768 6,122,782 42,499,200 2024 42,499,200 2,718,514 6,200,880 39,016,834 2025 39,016,834 2,477,063 6,234,731 35,259,167 2026 35,259,167 2,217,628 6,239,261 31,237,534 2027 31,237,534 1,940,036 6,242,131 26,935,439 2028 26,935,439 1,642,607 6,259,077 22,318,969 2029 22,318,969 1,323,594 6,272,883 17,369,681 2030 17,369,681 980,802 6,310,320 12,040,163 2031 12,040,163 612,618 6,323,274 6,329,507 2032 6,329,507 219,284 6,302,968 245,822 2033 245,822 - 6,256,336 - 2034 - - 6,199,650 - 2035 - - 6,122,305 - 2036 - - 6,036,913 - 2037 - - 5,949,403 - 2038 - - 5,849,950 - 2039 - - 5,764,088 - 2040 - - 5,663,583 - 2041 - - 5,557,106 - 17.00 Certain Key Assumptions Valuation Investment return assumption 6.90% Valuation Mortality Table FRS Mortality Rates from 7/1/15 FRS Valuation Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2016 60,083,405 3,963,912 5,270,802 58,776,515 2017 58,776,515 3,868,983 5,408,596 57,236,902 2018 57,236,902 3,757,043 5,574,006 55,419,939 2019 55,419,939 3,627,522 5,694,325 53,353,136 2020 53,353,136 3,481,892 5,781,870 51,053,158 2021 51,053,158 3,317,478 5,947,530 48,423,106 2022 48,423,106 3,130,755 6,099,691 45,454,170 2023 45,454,170 2,922,465 6,199,212 42,177,423 2024 42,177,423 2,693,337 6,287,115 38,583,644 2025 38,583,644 2,443,917 6,329,121 34,698,440 2026 34,698,440 2,175,105 6,350,358 30,523,187 2027 30,523,187 1,886,497 6,365,291 26,044,394 2028 26,044,394 1,576,403 6,395,944 21,224,853 2029 21,224,853 1,243,007 6,420,521 16,047,339 2030 16,047,339 884,068 6,469,526 10,461,880 2031 10,461,880 497,822 6,494,144 4,465,558 2032 4,465,558 84,417 6,484,234 - 2033 - - 6,444,406 - 2034 - - 6,393,784 - 2035 - - 6,319,481 - 2036 - - 6,235,428 - 2037 - - 6,147,622 - 2038 - - 6,046,598 - 2039 - - 5,956,620 - 2040 - - 5,850,482 - 2041 - - 5,734,407 - 16.67 Certain Key Assumptions Valuation Investment return assumption 6.90% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2016 60,083,405 2,814,952 5,270,802 57,627,555 2017 57,627,555 2,691,240 5,408,596 54,910,199 2018 54,910,199 2,554,037 5,574,006 51,890,229 2019 51,890,229 2,403,110 5,694,325 48,599,015 2020 48,599,015 2,239,696 5,781,870 45,056,841 2021 45,056,841 2,062,071 5,947,530 41,171,381 2022 41,171,381 1,867,955 6,099,691 36,939,646 2023 36,939,646 1,658,162 6,199,212 32,398,595 2024 32,398,595 1,433,497 6,287,115 27,544,977 2025 27,544,977 1,194,640 6,329,121 22,410,497 2026 22,410,497 942,531 6,350,358 17,002,669 2027 17,002,669 677,181 6,365,291 11,314,559 2028 11,314,559 397,713 6,395,944 5,316,328 2029 5,316,328 103,197 6,420,521 - 2030 - - 6,469,526 - 2031 - - 6,494,144 - 2032 - - 6,484,234 - 2033 - - 6,444,406 - 2034 - - 6,393,784 - 2035 - - 6,319,481 - 2036 - - 6,235,428 - 2037 - - 6,147,622 - 2038 - - 6,046,598 - 2039 - - 5,956,620 - 2040 - - 5,850,482 - 2041 - - 5,734,407 - 13.83 Certain Key Assumptions Valuation Investment return assumption 4.90% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2016 60,083,405 5,112,872 5,270,802 59,925,475 2017 59,925,475 5,092,685 5,408,596 59,609,564 2018 59,609,564 5,057,208 5,574,006 59,092,766 2019 59,092,766 5,005,859 5,694,325 58,404,300 2020 58,404,300 4,940,689 5,781,870 57,563,119 2021 57,563,119 4,858,453 5,947,530 56,474,042 2022 56,474,042 4,754,753 6,099,691 55,129,104 2023 55,129,104 4,630,625 6,199,212 53,560,518 2024 53,560,518 4,487,109 6,287,115 51,760,512 2025 51,760,512 4,325,040 6,329,121 49,756,431 2026 49,756,431 4,145,731 6,350,358 47,551,804 2027 47,551,804 3,948,855 6,365,291 45,135,368 2028 45,135,368 3,732,428 6,395,944 42,471,853 2029 42,471,853 3,494,282 6,420,521 39,545,613 2030 39,545,613 3,231,666 6,469,526 36,307,753 2031 36,307,753 2,942,401 6,494,144 32,756,010 2032 32,756,010 2,626,736 6,484,234 28,898,512 2033 28,898,512 2,285,191 6,444,406 24,739,297 2034 24,739,297 1,917,274 6,393,784 20,262,788 2035 20,262,788 1,522,171 6,319,481 15,465,478 2036 15,465,478 1,098,951 6,235,428 10,329,001 2037 10,329,001 645,712 6,147,622 4,827,091 2038 4,827,091 160,537 6,046,598 - 2039 - - 5,956,620 - 2040 - - 5,850,482 - 2041 - - 5,734,407 - 22.83 Certain Key Assumptions Valuation Investment return assumption 8.90% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 9 A. Valuation Date B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2016 9/30/2016 C. Assumed Dates of Employer Contributions 10/1/2016 10/1/2016 10/1/2016 10/1/2016 D. Annual Payment to Amortize Unfunded Actuarial Liability $ 2,101,220 $ 2,213,578 $ 3,991,498 $ 743,085 E. Employer Normal Cost 999,840 1,009,007 1,741,936 566,993 F. Employer ADC if Paid on Valuation Date: D + E 3,101,060 3,222,585 5,733,434 1,310,078 G. Employer ADC Adjusted for Frequency of Payments 3,101,060 3,222,585 5,733,434 1,310,078 H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 61.11 % 63.51 % 112.99 % 25.82 % I. Assumed Rate of Increase in Covered Payroll to Contribution Year 5.00 % 5.00 % 5.00 % 5.00 % J. Covered Payroll for Contribution Year 5,328,207 5,328,207 5,328,207 5,328,207 K. Employer ADC for Contribution Year: H x J 3,256,067 3,383,944 6,020,341 1,375,743 L. Estimated State Revenue in Contribution Year 412,644 412,644 412,644 412,644 M.Net Employer ADC in Contribution Year 2,843,423 2,971,300 5,607,697 963,099 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M ÷ J 53.37 % 55.77 % 105.25 % 18.08 % O. Expected Member Contributions 458,226 458,226 458,226 458,226 P. Total Contribution (including Members) 3,714,293 3,842,170 6,478,567 1,833,969 Q. Total Contribution as % of Covered Payroll in Contribution Year: P ÷ J 69.71 % 72.11 % 121.59 % 34.42 % R. Certain Key Assumptions Investment Return Assumption 6.90% 6.90% 4.90% 8.90% Mortality Table FRS Mortality Rates from 7/1/15 FRS Valuation RP-2000 fully generational using Scale AA RP-2000 fully generational using Scale AA RP-2000 fully generational using Scale AA October 1, 2015 ACTUARIALLY DETERMINED CONTRIBUTION October 1, 2015 October 1, 2015October 1, 2015 112.664(1)(b) F.S. except 2% higher investment return assumption 112.664(1)(b) F.S. Assumptions 112.664(1)(a) F.S. Assumptions Plan's Latest Actuarial Valuation Resource Centers LLC – Omega Recordkeeping Group LLC Pension Resource Center LLC – Financial Resource Center LLC THE RESOURCE CENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW .RESOURCE CENTERS .COM PALM BEACH GARDENS POLICE OFFICERS’ PENSION FUND 2017 MEETING DATES Thursday March 9, 2017 @ 9AM Thursday June 1, 2017 @ 9AM Thursday September 21, 2017 @ 9AM Thursday December 7, 2017 @ 9AM   800 N. Magnolia Avenue, Suite 1300, Orlando, FL 32803 | P 407.423.7911 | cbh.com August 24, 2016 Board of Trustees Palm Beach Gardens Police Pension Fund Palm Beach Gardens, Florida Board of Trustees: This engagement letter between Palm Beach Gardens Police Pension Fund (hereafter referred to as the “Fund”) and Cherry Bekaert LLP (the “Firm” or “Cherry Bekaert”) sets forth the nature and scope of the services we will provide, the Fund’s required involvement and assistance in support of our services, the related fee arrangements and other Terms and Conditions, which are attached hereto and incorporated by reference, designed to facilitate the performance of our professional services and to achieve the mutually agreed upon objectives of the Fund. SUMMARY OF SERVICES  We will provide the following services to the Fund as of and for the year ended September 30, 2016: Audit services  1. We will audit the basic financial statements of the Fund as of and for the year ended September 30, 2016. 2. We will audit the schedule of administrative and investment expenses. As part of our engagement, we will apply certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or the financial statements themselves. 3. We will apply limited procedures to the pension plan information and management’s discussion and analysis (MD&A) which will consist of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the financial statements. Accounting and other services  We will provide the following additional services: 1. Assist in the preparation of the financial statements and footnotes. YOUR EXPECTATIONS  As part of our planning process, we will discuss with you your expectations of Cherry Bekaert, changes that occurred during the year, your views on risks facing you, any relationship issues with Cherry Bekaert, and specific engagement arrangements and timing. Our services plan, which includes our audit plan, is designed to provide a foundation for an effective, efficient, and quality-focused approach to accomplish the engagement objectives and meet or exceed your expectations. Our service plan will be reviewed with you periodically and will serve as a benchmark against which you will be able to measure our performance. Any additional services that you may request, and that we agree to provide, will be the subject of separate written arrangements. Palm Beach Gardens Police Pension Fund  August 24, 2016  Page 2  The Fund recognizes that our professional standards require that we be independent from you in our audit of your financial statements and our accompanying report in order to ensure that our objectivity and professional skepticism have not been compromised. As a result, we cannot enter into a fiduciary relationship with you and you should not expect that we will act only with due regard to your interest in the performance of this audit and you should not impose on us special confidence that we will conduct this audit with only your interest in mind. Because of our obligation to be independent of you, no fiduciary relationship will be created by this engagement or audit of your financial statements. The engagement will be led by Ron Conrad, who will be responsible for assuring the overall quality, value, and timeliness of the services provided to you. AUDIT SERVICES   The objective of our audit is the expression of an opinion as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the Summary of Services section when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on:  Internal control related to the financial statements and compliance with the provisions of applicable laws, regulations, contracts, agreements and grants, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. The report on internal control and compliance will include a paragraph that states that the purpose of the report is solely to describe (1) the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States; and will include tests of accounting records and other procedures as deemed necessary to enable us to express such opinions and to render the required reports. If any of our opinions resulting from the procedures described above are other than unmodified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue a report as a result of this engagement. ACCOUNTING AND OTHER SERVICES  Accounting services  We will advise Management about the application of appropriate accounting principles, and may propose adjusting journal entries to the Fund’s financial statements. Management is responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the Fund’s financial statements. If, while reviewing the journal entries, Management determines that a journal entry is inappropriate, it will be Management’s responsibility to contact us to correct it. Palm Beach Gardens Police Pension Fund  August 24, 2016  Page 3  Financial statement preparation  We will assist in the preparation of the Fund’s financial statements and notes, based on information in the Fund’s accounting records. However, the responsibility for the Fund’s financial statements and notes remains with Management. This responsibility includes establishing and maintaining adequate records and effective internal controls over financial reporting, the selection and application of accounting principles, the safeguarding of assets, and adjusting the financial statements for any material misstatements as well as reviewing and approving for publication the draft financial statements prepared with our assistance. Management’s responsibilities related to accounting and other services  For all nonattest services we perform in connection with the engagement, you are responsible for designating a competent employee to oversee the services, make any management decisions, perform any management functions related to the services, evaluate the adequacy of the services, and accept overall responsibility for the results of the services. Prior to the release of the report, Management will need to sign a representation letter acknowledging your responsibility for the results of these services. MANAGEMENT’S RESPONSIBILITIES RELATED TO THE AUDIT  Management is responsible for the fair presentation of the financial statements in conformity with GAAP, including the appropriate basis of accounting is applied by all component units, if applicable, for making all financial records and related information available to us, for ensuring that all material information is disclosed to us, and for identifying and ensuring that the Fund complies with the laws and regulations applicable to its activities and with the provisions of contracts and grant agreements. Management is responsible for the preparation of the supplementary information in conformity with GAAP. Management agrees to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. Management also agrees to include the audited financial statements with any presentation of the supplementary information that includes our report thereon or make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Management is also responsible for adjusting the financial statements to correct material misstatements, informing us of events that occurred subsequent to the balance sheet date until the date of the auditors’ report that might affect the financial statements or related disclosures and informing us of any discovery of facts related to items that existed at the financial statement date that might affect the financial statements or related disclosures. Management is responsible for informing us of its views regarding the risk of fraud at the Fund. Management must inform us of their knowledge of any allegations of fraud or suspected fraud affecting the Fund received in communications from employees, former employees, regulators, or others. Additionally, Management must inform us about all known or suspected fraud affecting the Fund involving (a) Management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. Management is responsible for the design and implementation of programs and controls over financial reporting and to prevent and detect fraud. Appropriate supervisory review Palm Beach Gardens Police Pension Fund  August 24, 2016  Page 4  procedures are necessary to provide reasonable assurance that adopted policies and prescribed procedures are adhered to and to identify errors and fraud or illegal acts. As a part of our audit, we will consider the Fund’s internal control structure, as required by GAAS, sufficient to plan the audit and to determine the nature, timing, and extent of auditing procedures necessary for expressing our opinion concerning the financial statements. An audit is not designed to provide any assurance on internal controls. As part of our consideration of the Fund’s internal control structure, we will inform you of matters that come to our attention that represent significant deficiencies or material weaknesses in the design or operation of the internal control structure. Management is responsible for establishment and maintenance of a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying to us previous audits or other engagements or studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits or other engagements or studies. You are also responsible for providing management’s views on our current findings, conclusions and recommendations, as well as your planned corrective actions, and the timing and format related thereto. At the conclusion of the engagement, Management will provide to us a representation letter that, among other things, addresses (1) Management’s responsibilities related to the audit and confirms certain representations made to us during the audit, including, Management’s acknowledgement of its responsibility for the design and implementation of programs and controls to prevent and detect fraud; (2) Management’s responsibilities related to the monitoring of internal control over financial reporting; and (3) Management’s knowledge, directly or from allegations by others, of fraud or suspected fraud affecting the Fund. The representation letter will also affirm to us that Management believes that the effects of any uncorrected misstatements, if any, pertaining to the financial statements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The Firm will rely on Management providing these representations to us, both in the planning and performance of the audit, and in considering the fees that we will charge to perform the audit. FEES  The estimated fee contemplates only the services described in the Summary of Services section of this letter. If Management requests additional services not listed above, we will provide an estimate of those fees prior to commencing additional work. The following summarizes the fees for the services described above: Description of Services Estimated Fee Audit services Audit of the financial statements, including assistance with preparation of financial statements $15,600 The fees will be billed periodically. Invoices are due on presentation. Palm Beach Gardens Police Pension Fund  August 24, 2016  Page 5  The fees for the above outlined services will be invoiced as presented below. If the foregoing is in accordance with your understanding, please sign a copy of this letter in the space provided and return it to us. If you have any questions, please call Ron Conrad at 407-423-7911 Sincerely, CHERRY BEKAERT LLP  ATTACHMENT – Engagement Letter Terms and Conditions Palm Beach Gardens Police Pension Fund ACCEPTED BY: ____________________________________________________________ TITLE: ________________________________________ DATE: ___________________ Attachment ‐ Page 1    Cherry Bekaert LLP  Engagement Letter Terms and Conditions  The following terms and conditions are an integral part of the attached engagement letter and should be read in their entirety in conjunction with your review of the letter. LIMITATIONS OF THE AUDIT REPORT   Should the Fund wish to include or incorporate by reference these financial statements and our report thereon into any other document at some future date, we will consider granting permission to include our report into another such document at the time of the request. However, we may be required by generally accepted auditing standards (“GAAS”) to perform certain procedures before we can give our permission to include our report in another document such as an annual report, private placement, regulator filing, official statement, offering of debt securities, etc. You agree that you will not include or incorporate by reference these financial statements and our report thereon, or our report into any other document without our prior written permission. In addition, to avoid unnecessary delay or misunderstandings, it is important to provide us with timely notice of your intention to issue any such document. LIMITATIONS OF THE AUDIT PROCESS  In conducting the audit, we will perform tests of the accounting records and such other procedures as we consider necessary in the circumstances to provide a reasonable basis for our opinion on the financial statements. We also will assess the accounting principles used and significant estimates made by Management, as well as evaluate the overall financial statement presentation. Our audit will include procedures designed to obtain reasonable assurance of detecting misstatements due to errors or fraud that are material to the financial statements. Absolute assurance is not attainable because of the nature of audit evidence and the characteristics of fraud. For example, audits performed in accordance with GAAS are based on the concept of selective testing of the data being examined and are, therefore, subject to the limitation that material misstatements due to errors or fraud, if they exist, may not be detected. Also, an audit is not designed to detect matters that are immaterial to the financial statements. In addition, an audit conducted in accordance with GAAS does not include procedures specifically designed to detect illegal acts having an indirect effect (e.g., violations of fraud and abuse statutes that result in fines or penalties being imposed on the Fund) on the financial statements. Similarly, in performing our audit we will be aware of the possibility that illegal acts may have occurred. However, it should be recognized that our audit provides no assurance that illegal acts generally will be detected, and only reasonable assurance that illegal acts having a direct and material effect on the determination of financial statement amounts will be detected. We will inform you with respect to errors and fraud, or illegal acts that come to our attention during the course of our audit unless clearly inconsequential. In the event that we have to consult with the Fund’s counsel or counsel of our choosing regarding any illegal acts we identify, additional fees incurred may be billed to the Fund. You agree to cooperate fully with any procedures we deem necessary to perform with respect to these matters. We will issue a written report upon completion of our audit of the Fund’s consolidated financial statements. If, for any reason, we are unable to complete the audit, or are unable to form, or have not formed an opinion on the financial statements, we may decline to express an opinion or decline to issue a report as a result of the engagement. We will notify the appropriate party within your organization of our decision and discuss the reasons supporting our position. AUDIT PROCEDURES – GENERAL  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve professional judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain   Attachment ‐ Page 2      reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the Fund or to acts by management or employees acting on behalf of the Fund. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform you of any material errors and fraud, or illegal acts that come to our attention during the course of our audit. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. AUDIT PROCEDURES – INTERNAL CONTROLS  Our audit will include obtaining an understanding of the Fund and its environment, including internal controls, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under professional standards, and Government Auditing Standards. AUDIT PROCEDURES ‐ COMPLIANCE  As part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we will perform tests of the Fund's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.   Attachment ‐ Page 3          NON‐ATTEST SERVICES   All non-attest services to be provided in the attached engagement letter (if applicable) shall be provided pursuant to the AICPA Code of Professional Conduct. The AICPA Code of Professional Conduct requires that we establish objectives of the engagement and the services to be performed, which are described under non-attest services in the attached letter. You agree to assume all management responsibilities for the nonattest services we provide; oversee the services by designating an individual, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. In order to ensure we provide such services in compliance with all professional standards, you are responsible for-  Making all financial records and related information available to us.  Ensuring that all material information is disclosed to us.  Granting unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.  Identifying and ensuring that such non-attest complies with the laws and regulations. The accuracy and appropriateness of such non-attest services shall be limited by the accuracy and sufficiency of the information provided by you. In the course of providing such non-attest services, we may provide professional advice and guidance based on knowledge accounting, tax and other compliance, and of the facts and circumstances as provided by you. Such advice and guidance shall limited as permitted under the Code of Professional Conduct. COMMUNICATIONS  At the conclusion of the audit engagement, we may provide Management and those charged with governance a letter stating any significant deficiencies or material weaknesses which may have been identified by us during the audit and our recommendations designed to help the Fund make improvements in its internal control structure and operations related to the identified matters discovered in the financial statement audit. As part of this engagement we will ensure that certain additional matters are communicated to the appropriate members of the Fund. Such matters include (1) our responsibility under GAAS; (2) the initial selection of and changes in significant accounting policies and their application; (3) our independence with respect to the Fund; (4) the process used by Management in formulating particularly sensitive accounting estimates and the basis for our conclusion regarding the reasonableness of those estimates; (5) audit adjustments, if any, that could, in our judgment, either individually or in the aggregate be significant to the financial statements or our report; (6) any disagreements with Management concerning a financial accounting, reporting or auditing matter that could be significant to the financial statements; (7) our views about matters that were the subject of Management’s consultation with other accountants about auditing and accounting matters; (8) major issues that were discussed with Management in connection with the retention of our services, including, among other matters, any discussions regarding the application of accounting principles and auditing standards; and (9) serious difficulties that we encountered in dealing with Management related to the performance of the audit. OTHER MATTERS  Access to working papers  The working papers and related documentation for the engagement are the property of the Firm and constitute confidential information. We have a responsibility to retain the documentation for a period of time to satisfy legal or regulatory requirements for records retention. It is our policy to retain all workpapers and client information for seven years from the date of issuance of the report. It is our policy to retain emails and attachments to emails for a period of 15 months, except as required by any   Attachment ‐ Page 4      governmental regulation. Except as discussed below, any requests for access to our working papers will be discussed with you prior to making them available to requesting parties. Any parties seeking access to our working papers must agree to sign our standard access letter. We may be requested to make certain documentation available to regulators, governmental agencies (e.g., SEC, PCAOB, HUD, DOL, etc.) or their representatives (“Regulators”) pursuant to law or regulations. If requested, access to the documentation will be provided to the Regulators. The Regulators may intend to distribute to others, including other governmental agencies, our working papers and related documentation without our knowledge or express permission. You hereby acknowledge and authorize us to allow Regulators access to and copies of documentation as requested. In addition, our Firm, as well as all other major accounting firms, participates in a “peer review” program covering our audit and accounting practices as required by the American Institute of Certified Public Accountants. This program requires that once every three years we subject our quality assurance practices to an examination by another accounting firm. As part of the process, the other firm will review a sample of our work. It is possible that the work we perform for you may be selected by the other firm for their review. If it is, they are bound by professional standards to keep all information confidential. If you object to having the work we do for you reviewed by our peer reviewer, please notify us in writing. Electronic transmittals  During the course of our engagement, we may need to electronically transmit confidential information to each other, within the Firm, and to other entities engaged by either party. Although email is an efficient way to communicate, it is not always a secure means of communication and thus, confidentiality may be compromised. As an alternative, we recommend using our Client Portal (”Portal”) to transmit documents. Portal allows you, us, and other involved entities to upload and download documents in a secure location. You agree to the use of email, Portal, and other electronic methods to transmit and receive information, including confidential information between the Firm, the Fund, and other third party providers utilized by either party in connection with the engagement. However, personal identifying information of plan members shall be encrypted, coded or redacted. Cherry Bekaert agrees all work will be performed in the United States and no work will be outsourced overseas. Subpoenas  In the event we are requested or authorized by you or required by government regulation, subpoena, or other legal process to produce our working papers or our personnel as witnesses with respect to our engagement for you, you will, so long as we are not a party to the proceeding in which the information is sought, reimburse us for our professional time and expense, as well as the fees and expenses of our counsel, incurred in responding to such a request at standard billing rates. Dispute resolution procedures  If any dispute, controversy or claim arises in connection with the performance or breach of this agreement, either party may, on written notice to the other party, request that the matter be mediated. Such mediation would be conducted by a mediator appointed by and pursuant to the rules of the American Arbitration Association (AAA) or such other neutral facilitator acceptable to both parties. Both parties would exert their best efforts to discuss with each other in good faith their respective positions in an attempt to finally resolve such dispute, controversy, or claim. TERMS AND CONDITIONS SUPPORTING FEE  The estimated fees set forth in the attached engagement letter are based on anticipated full cooperation from your personnel, timely delivery of requested audit schedules and supporting information, timely communication of all significant accounting and financial reporting matters, the assumption that unexpected circumstances will not be encountered during the audit, as well as working space and clerical   Attachment ‐ Page 5      assistance as mutually agreed upon and as is normal and reasonable in the circumstances. We strive to ensure that we have the right professionals scheduled on each engagement. As a result, sudden Fund requested scheduling changes or scheduling changes necessitated by the agreed information not being ready on the agreed upon dates can result in expensive downtime for our professionals. Any last minute schedule changes that result in downtime for our professionals could result in additional fees. Our estimated fee does not include assistance in bookkeeping or other accounting services not previously described. If for any reason the Fund is unable to provide such schedules, information and assistance, the Firm and the Fund will mutually revise the fee to reflect additional services, if any, required of us to achieve these objectives. The estimated fees contemplate that the Fund will provide adequate documentation of its systems and controls related to significant transaction cycles and audit areas. In providing our services, we will consult with the Fund with respect to matters of accounting, financial reporting or other significant business issues as permitted by professional standards. Accordingly, time necessary to effect a reasonable amount of such consultation is reflected in our fee. However, should a matter require research, consultation or audit work beyond that amount, the Firm and the Fund will agree to an appropriate revision in our fee. The estimated fees are based on auditing and accounting standards effective as of the date of this engagement letter and known to apply to the Fund at this time, but do not include any time related to the application of new auditing or accounting standards that impact the Fund for the first time. If new auditing or accounting standards are issued subsequent to the date of this letter and are effective for the period under audit, we will estimate the impact of any such standard on the nature, timing and extent of our planned audit procedures and will communicate with you concerning the scope of the additional procedures and the estimated fees. In the event of nonpayment of any invoice rendered by us, we retain the right to (a) suspend the performance of our services, (b) change the payment conditions under this engagement letter, or (c) terminate our services. If we elect to suspend our services, such services will not be resumed until your account is paid. If we elect to terminate our services for nonpayment, the Fund will be obligated to compensate us for all time expended and reimburse us for all expenses through the date of termination. This engagement letter sets forth the entire understanding between the Fund and the Firm regarding the services described herein and supersedes any previous proposals, correspondence, and understandings whether written or oral. Any subsequent changes to the terms of this letter, other than additional billings, will be rendered in writing and shall be executed by both parties. Should any portion of this engagement letter be ruled invalid, it is agreed that such invalidity will not affect any of the remaining portions. Ac c o u n t D e s c r i p t i o n 20 1 4 / 2 0 1 5 Fi s c a l Y e a r Ac t u a l Ex p e n s e s % T o t a l Bu d g e t 20 1 6 / 2 0 1 7 Fi s c a l Y e a r Bu d g e t % T o t a l Bu d g e t Currently Paid to date (FY 15/16)Budget Assumptions Pl a n E x p e n s e : Se r v i c e P r o v i d e r s : Ac t u a r y 33 , 3 2 5 . 0 0 24 . 2 % 49 , 9 8 7 . 5 0 24 . 4 % 39,963.00 Category Increase by 50% Ad m i n i s t r a t o r 31 , 0 4 0 . 4 2 22 . 5 % 38 , 8 0 0 . 5 3 18 . 9 % 28,513.64 Category Increase by 25% Au d i t o r / A c c o u n t i n g 16 , 9 5 0 . 0 0 12 . 3 % 21 , 1 8 7 . 5 0 10 . 3 % 15,150.00 Category Increase by 25% At t o r n e y / L e g a l 9, 7 6 3 . 9 5 7. 1 % 14 , 6 4 5 . 9 3 7. 2 % 12,243.10 Category Increase by 50% In v e s t m e n t C o n s u l t a n t 21 , 7 4 6 . 0 0 15 . 8 % 27 , 1 8 2 . 5 0 13 . 3 % 16,985.45 Category Increase by 25% Su b t o t a l : 11 2 , 8 2 5 . 3 7 81 . 9 % 15 1 , 8 0 3 . 9 5 74 . 1 % Ot h e r P l a n E x p e n s e s : Du e s a n d S u b s c r i p t i o n s 60 0 . 0 0 0. 4 % 1, 7 5 0 . 0 0 0. 9 % 690.00 Category Increase by 25% + $1,000 In s u r a n c e 7, 6 8 0 . 1 6 5. 6 % 9, 6 0 0 . 2 0 4. 7 % 7,637.54 Category Increase by 25% Mi s c e l l a n e o u s E x p e n s e s 2, 2 8 4 . 9 1 1. 7 % 20 , 0 0 0 . 0 0 9. 8 % 2,200.40 Transfer Category Minimum $20,000 Tr a v e l & E d u c a t i o n 14 , 4 4 3 . 9 8 10 . 5 % 21 , 6 6 5 . 9 7 10 . 6 % 14,785.89 Category Increase by 50% Su b t o t a l : 25 , 0 0 9 . 0 5 18 . 1 % 53 , 0 1 6 . 1 7 25 . 9 % TO T A L : 13 7 , 8 3 4 . 4 2 10 0 . 0 % 20 4 , 8 2 0 . 1 2 10 0 . 0 % *T h i s r e p o r t d o e s n o t i n c l u d e I n v e s t m e n t M a n a g e r o r C u s t o d i a n e x p e n s e s * Pa l m B e a c h G a r d e n s P o l i c e O f f i c e r s ' P e n s i o n F u n d Fi s c a l Y e a r 2 0 1 6 - 2 0 1 7 B u d g e t PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals Meeting of September 22, 2016 APPLICATIONS TO ENTER THE DROP TIMOTHY CONNORS DATE OF BIRTH 03/27/1965 DATE OF HIRE 01/22/1996 DROP ENTRY DATE 01/22/2016 FORM OF BENEFIT 10 YEAR CERTAIN MONTHLY BENEFIT AMOUNT $5,719.46 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ RICHARD MORETTI DATE OF BIRTH 08/09/1966 DATE OF HIRE 01/22/1996 DROP ENTRY DATE 01/22/2016 FORM OF BENEFIT 10 YEAR CERTAIN MONTHLY BENEFIT AMOUNT $5,514.63 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ KEVIN FOLMAR DATE OF BIRTH 09/06/1972 DATE OF HIRE 01/22/1996 DROP ENTRY DATE 04/06/2016 FORM OF BENEFIT LIFE ANNUITY MONTHLY BENEFIT AMOUNT $6,200.66 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ APPLICATIONS TO EXIT THE DROP ANDREW SPRAGG DATE OF BIRTH 06/29/1965 DATE OF HIRE 11/15/1989 DROP ENTRY DATE 02/01/2012 DATE OF TERMINATION 07/04/2016 FORM OF BENEFIT LIFE ANNUITY MONTHLY BENEFIT AMOUNT $8,343.58 SUPPLEMENTAL BENEFIT $ 275.00 _________________________ ROBERT O’DELL DATE OF BIRTH 12/14/1964 DATE OF HIRE 10/28/1987 DROP ENTRY DATE 09/01/2011 DATE OF TERMINATION 08/12/2016 FORM OF BENEFIT LIFE ANNUITY MONTHLY BENEFIT AMOUNT $9,348.58 SUPPLEMENTAL BENEFIT $ 287.50 _________________________ GARY CARMACK DATE OF BIRTH 03/22/1952 DATE OF HIRE 09/27/1989 DROP ENTRY DATE 09/27/2011 DATE OF TERMINATION 09/21/2016 FORM OF BENEFIT 100% J&S MONTHLY BENEFIT AMOUNT $6,338.66 SUPPLEMENTAL BENEFIT $ 275.00 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (DUE TO RETIREMENT) ANDREW SPRAGG DATE OF RETIREMENT 07/04/2016 DATE OF BIRTH 06/29/1965 TYPE OF DISTRIBUTION MONTHLY-CASH TOTAL GROSS DISTRIBUTION $1,900.00 TAX WITHHOLDING (20%) $ 380.00 TOTAL NET DISTRIBUTION $1,520.00 CURRENT DROP ACCOUNT BALANCE $511,657.45 _________________________ ROBERT O’DELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $40,000.00 TAX WITHHOLDING (20%) $ 8,000.00 TOTAL NET DISTRIBUTION $32,000.00 CURRENT DROP ACCOUNT BALANCE $635,452.06 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNT (6/15/16) GWEN FLEMING DATE OF RETIREMENT 10/10/2014 DATE OF BIRTH 12/04/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $12,000.00 TAX WITHHOLDING (20%) $ 2,400.00 TOTAL NET DISTRIBUTION $12,800.00 CURRENT DROP ACCOUNT BALANCE $42,117.76 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNT (7/15/16) WILLIAM BRANDT DATE OF RETIREMENT 09/20/2015 DATE OF BIRTH 09/18/1958 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $20,000.00 TAX WITHHOLDING (25%) $ 5,000.00 TOTAL NET DISTRIBUTION $15,000.00 CURRENT DROP ACCOUNT BALANCE $385,114.53 _________________________ JOSEPH SHEEHAN DATE OF RETIREMENT 01/29/2016 DATE OF BIRTH 03/28/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $65,000.00 TAX WITHHOLDING (25%) $16,250.00 TOTAL NET DISTRIBUTION $48,750.00 CURRENT DROP ACCOUNT BALANCE $506,512.77 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNT (8/15/16) SHEREE BROWN DATE OF RETIREMENT 05/02/2014 DATE OF BIRTH 10/01/1954 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $10,000.00 TAX WITHHOLDING (20%) $ 2,000.00 TOTAL NET DISTRIBUTION $ 8,000.00 CURRENT DROP ACCOUNT BALANCE $136,107.91 _________________________ GWEN FLEMING DATE OF RETIREMENT 10/10/2014 DATE OF BIRTH 12/04/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $10,000.00 TAX WITHHOLDING (20%) $ 2,000.00 TOTAL NET DISTRIBUTION $ 8,000.00 CURRENT DROP ACCOUNT BALANCE $30,754.57 _________________________ JAY SPENCER DATE OF RETIREMENT 09/03/2010 DATE OF BIRTH 01/07/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $4,500.00 TAX WITHHOLDING (30%) $1,350.00 TOTAL NET DISTRIBUTION $3,150.00 CURRENT DROP ACCOUNT BALANCE $297,496.05 _________________________ APPLICATION FOR REFUND OF CONTRIBUTIONS ABEL ALVES DATE OF BIRTH 09/11/1979 DATE OF HIRE 06/06/2011 DATE OF TERMINATION 07/25/2012 YEARS OF SERVICE 1 YEAR, 1 MTH & 29 DAYS TOTAL REFUND $5,219.18 TAX WITHHOLDING (0%) $0.00 (ROLLOVER) TOTAL NET REFUND $5,219.18 _________________________ __________________________________, CHAIRMAN APPROVED _________________________________, SECRETARY _________________________________, DATE Oc t o b e r N o v e m b e r D e c e m b e r J a n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e J u l y A u g u s t 10 0 0 B B & T 3, 7 1 5 , 2 2 1 . 3 3 2 3 4 , 6 2 0 . 7 1 2 7 0 , 0 6 5 . 7 1 3 5 3 , 5 5 0 . 8 3 2 6 6 , 5 1 9 . 6 0 3 2 0 , 8 1 4 . 7 3 3 5 2 , 0 4 6 . 6 7 1 2 5 , 2 4 9 . 0 0 2 3 8 , 8 4 3 . 7 8 3 7 1 , 6 4 7 . 5 8 3 2 0 , 6 5 2 . 6 5 12 1 5 A / R E m p l o y e e B u y b a c k C o n t r i b u t i o n s 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 9 , 9 0 3 . 6 1 12 3 5 P e n d i n g R e i n v e s t m e n t / D i s t r i b u t i o n 0 . 0 0 0 . 0 0 5 7 , 5 0 1 . 9 1 0 . 0 0 0 . 0 0 ( 1 , 0 4 0 , 5 8 7 . 1 4 ) 0 . 0 0 0 . 0 0 7 5 , 7 9 8 . 4 1 0 . 0 0 0 . 0 0 13 0 0 P r e p a i d O t h e r 20 5 , 4 5 9 . 2 0 2 1 0 , 4 2 8 . 9 6 2 2 6 , 2 6 5 . 7 6 2 2 0 , 4 3 3 . 8 0 2 3 3 , 1 2 9 . 9 3 2 4 1 , 7 7 3 . 8 5 2 4 3 , 9 8 2 . 0 9 7 4 , 2 8 9 . 0 2 2 6 4 , 4 4 1 . 6 8 2 6 6 , 4 6 6 . 2 4 2 8 2 , 1 9 4 . 2 5 Sa l e m T r u s t ( C o n s o l i d a t e d ) 14 0 0 C a s h a n d E q u i v a l e n t s 1 , 2 2 2 , 1 3 7 . 9 6 1 , 3 3 5 , 2 2 9 . 9 4 8 1 4 , 9 4 4 . 8 5 4 7 8 , 2 8 8 . 5 3 7 3 7 , 1 8 5 . 5 6 2 , 1 8 0 , 2 4 5 . 3 2 9 6 7 , 3 7 2 . 3 1 1 , 1 2 7 , 6 5 0 . 6 9 1 , 3 3 4 , 8 1 3 . 4 0 5 8 7 , 9 0 7 . 2 3 8 8 5 , 9 1 5 . 9 3 14 1 0 E q u i t i e s 8, 1 0 3 , 6 3 3 . 5 8 8 , 2 1 9 , 8 9 9 . 3 0 8 , 1 5 2 , 2 0 0 . 1 4 7 , 3 7 6 , 1 2 7 . 7 3 7 , 1 4 4 , 0 7 4 . 2 8 7 , 5 6 2 , 8 1 7 . 7 7 7 , 4 4 5 , 2 5 0 . 7 2 7 , 5 3 0 , 1 0 2 . 8 3 7 , 4 6 5 , 7 1 4 . 0 0 7 , 5 3 8 , 6 4 5 . 5 3 7 , 6 6 1 , 5 9 0 . 7 5 14 2 0 F i x e d I n c o m e 1 7 , 7 0 9 , 4 0 1 . 9 7 1 8 , 5 2 9 , 5 3 0 . 4 3 1 8 , 6 8 5 , 0 8 1 . 0 3 1 9 , 2 4 9 , 3 6 1 . 4 1 1 8 , 6 3 4 , 2 5 6 . 0 4 1 8 , 6 7 7 , 4 1 2 . 9 1 1 8 , 7 5 0 , 7 1 8 . 4 2 1 8 , 9 5 7 , 3 2 3 . 9 6 1 8 , 8 0 6 , 2 5 3 . 7 3 1 9 , 0 8 7 , 9 6 9 . 3 1 1 8 , 6 3 1 , 0 4 2 . 1 0 14 3 0 O t h e r A s s e t s - R h u m b L i n e 3 7 , 5 1 0 , 2 3 7 . 9 2 3 7 , 9 1 1 , 9 5 5 . 5 4 3 6 , 8 1 9 , 7 1 3 . 9 5 3 4 , 8 3 2 , 6 5 2 . 6 6 3 5 , 0 0 4 , 4 5 3 . 6 9 3 7 , 2 8 5 , 3 3 9 . 4 2 3 6 , 4 5 0 , 3 5 3 . 5 4 3 7 , 1 3 5 , 6 5 7 . 2 0 3 6 , 4 6 7 , 4 0 7 . 0 3 3 7 , 9 8 4 , 9 4 1 . 0 6 4 5 , 9 0 4 , 0 1 6 . 9 7 14 5 0 A c c r u e d I n c o m e 1 3 2 , 7 4 5 . 8 3 1 4 3 , 5 9 2 . 8 8 1 1 8 , 0 0 8 . 1 7 1 1 3 , 5 0 2 . 2 1 1 3 8 , 5 4 3 . 4 0 1 2 6 , 4 1 3 . 3 0 1 2 5 , 1 1 6 . 5 9 1 3 3 , 5 2 4 . 8 6 1 1 4 , 2 0 5 . 0 0 1 1 0 , 3 1 0 . 4 4 1 3 5 , 3 6 5 . 6 3 14 6 0 B r o k e r A c c r u a l s (4 , 4 3 9 . 7 2 ) ( 1 , 7 0 3 . 5 2 ) ( 2 , 4 0 7 . 0 2 ) ( 3 0 2 , 4 1 7 . 6 4 ) 1 8 , 8 1 8 . 8 5 ( 1 , 8 2 6 . 0 6 ) ( 3 1 , 2 8 5 . 1 6 ) ( 3 4 8 , 6 9 2 . 3 4 ) ( 5 9 , 5 9 6 . 7 3 ) 7 0 , 0 6 7 . 3 7 ( 2 6 4 , 2 9 8 . 9 5 ) Sa l e m T r u s t T o t a l 6 4 , 6 7 3 , 7 1 7 . 5 4 6 6 , 1 3 8 , 5 0 4 . 5 7 6 4 , 5 8 7 , 5 4 1 . 1 2 6 1 , 7 4 7 , 5 1 4 . 9 0 6 1 , 6 7 7 , 3 3 1 . 8 2 6 5 , 8 3 0 , 4 0 2 . 6 6 6 3 , 7 0 7 , 5 2 6 . 4 2 6 4 , 5 3 5 , 5 6 7 . 2 0 6 4 , 1 2 8 , 7 9 6 . 4 3 6 5 , 3 7 9 , 8 4 0 . 9 4 7 2 , 9 5 3 , 6 3 2 . 4 3 16 0 4 A m e r i c a n C o r e R e a l t y 4 , 7 3 1 , 7 2 4 . 8 0 4 , 7 3 1 , 7 2 4 . 8 0 4 , 8 0 4 , 2 6 4 . 5 8 5 , 0 5 2 , 2 6 4 . 5 8 5 , 0 5 2 , 2 6 4 . 5 8 5 , 1 0 9 , 6 1 3 . 2 1 6 , 2 1 1 , 6 1 3 . 2 1 6 , 2 1 1 , 6 1 3 . 2 1 6 , 1 9 6 , 6 5 0 . 0 1 6 , 5 4 6 , 6 5 0 . 0 1 6 , 5 4 6 , 6 5 0 . 0 1 16 1 6 D r e y f u s I n t e r n a t i o n a l B o n d 7 6 6 , 7 9 1 . 5 5 7 7 1 , 1 1 8 . 5 9 7 5 4 , 6 1 7 . 5 3 7 5 4 , 6 1 7 . 5 3 7 5 4 , 6 1 7 . 5 3 7 9 9 , 4 3 5 . 9 7 7 9 9 , 4 3 5 . 9 7 7 9 9 , 4 3 5 . 9 7 8 1 8 , 1 9 7 . 1 8 8 1 8 , 1 9 7 . 1 8 8 1 8 , 1 9 7 . 1 8 16 2 8 O p p e n h e i m e r I n t e r n a t i o n a l B o n d 7 0 9 , 9 0 3 . 0 8 7 0 9 , 9 0 3 . 0 8 7 0 3 , 1 1 7 . 1 5 7 0 5 , 2 3 3 . 0 7 7 0 7 , 1 4 3 . 2 5 7 3 1 , 8 2 6 . 4 3 7 3 1 , 8 2 6 . 4 3 7 3 1 , 8 2 6 . 4 3 7 5 4 , 3 9 9 . 9 7 7 5 4 , 3 9 9 . 9 7 7 5 4 , 3 9 9 . 9 7 16 3 9 V a n g u a r d G l o b a l E q u i t y 2 , 1 8 9 , 5 1 2 . 9 1 2 , 3 8 9 , 5 1 2 . 9 1 2 , 4 9 9 , 3 6 6 . 3 5 2 , 4 9 9 , 3 6 6 . 3 5 2 , 4 9 9 , 3 6 6 . 3 5 2 , 4 9 3 , 0 2 2 . 7 8 2 , 4 9 3 , 0 2 2 . 7 8 2 , 4 9 3 , 0 2 2 . 7 8 2 , 5 0 5 , 7 0 9 . 9 2 2 , 5 0 5 , 7 0 9 . 9 2 0 . 0 0 16 4 1 V a n g u a r d I n t e r n a t i o n a l G r o w t h 1 , 4 8 2 , 9 2 8 . 6 6 2 , 3 8 2 , 9 2 8 . 6 6 2 , 4 6 7 , 0 4 1 . 9 7 2 , 4 6 7 , 0 4 1 . 9 7 2 , 4 6 7 , 0 4 1 . 9 7 2 , 4 1 7 , 7 4 5 . 2 8 2 , 4 1 7 , 7 4 5 . 2 8 2 , 4 1 7 , 7 4 5 . 2 8 2 , 4 2 9 , 8 8 5 . 5 1 2 , 4 2 9 , 8 8 5 . 5 1 0 . 0 0 16 4 2 V a n g u a r d I n t e r n a t i o n a l V a l u e 1 , 2 7 8 , 4 0 0 . 6 9 2 , 3 7 8 , 4 0 0 . 6 9 2 , 3 6 1 , 3 8 0 . 9 5 2 , 3 6 1 , 3 8 0 . 9 5 2 , 3 6 1 , 3 8 0 . 9 5 2 , 3 4 9 , 2 2 8 . 4 6 2 , 3 4 9 , 2 2 8 . 4 6 2 , 3 4 9 , 2 2 8 . 4 6 2 , 3 5 2 , 2 6 6 . 5 8 2 , 3 5 2 , 2 6 6 . 5 8 0 . 0 0 20 0 0 A c c o u n t s P a y a b l e ( 3 8 , 8 4 1 . 4 6 ) 0 . 0 0 ( 4 3 , 8 4 3 . 3 2 ) ( 3 9 , 2 6 5 . 3 5 ) 0 . 0 0 ( 4 3 , 1 2 2 . 5 1 ) ( 3 8 , 6 5 1 . 4 5 ) 0 . 0 0 ( 4 3 , 8 2 8 . 8 9 ) ( 3 8 , 8 8 5 . 2 4 ) 0 . 0 0 79 , 7 2 4 , 7 2 1 . 9 1 7 9 , 9 5 7 , 0 4 6 . 5 8 7 8 , 6 9 7 , 2 2 3 . 3 2 7 6 , 1 3 2 , 0 4 2 . 2 4 7 6 , 0 2 8 , 6 9 9 . 5 9 7 9 , 2 2 0 , 0 5 7 . 3 3 7 9 , 2 7 7 , 6 7 9 . 4 7 7 9 , 7 4 7 , 8 8 0 . 9 6 7 9 , 7 3 1 , 0 6 4 . 1 9 8 1 , 3 9 6 , 0 8 2 . 3 0 8 1 , 6 8 5 , 6 3 0 . 1 0 Pa l m B e a c h G a r d e n s P o l i c e Ba l a n c e S h e e t FY 2 0 1 6 Ac c o u n t D e s c r i p t i o n TO T A L R E S E R V E F U N D ( M A R K E T V A L U E ) : Pension Resource Centers Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Meeting Check Number Date Payee and Description Amount 2770 June 1, 2016 City of Palm Beach Gardens $23,891.79 Retiree Insurance 2771 June 1, 2016 Pension Resource Center $2,575.00 Administrative Fee - June 2016 2772 June 1, 2016 Klausner, Kaufman, Jensen & Levinson $1,102.50 Legal Services Rendered through 4-30-16 2773 June 1, 2016 Gabriel Roeder Smith & Company $7,684.00 Actuarial Services Rendered through 4-30-16 2774 June 1, 2016 FPPTA $550.00 Registered Brad Seidensticker Hyatt Regency Orlando 6-26-16 to 6-29-16 2775 June 1, 2016 Hyatt Regency Orlando $507.00 Reservations for Brad Seidensticker - FPPTA Conference 2776 June 2, 2016 FPPTA $550.00 Register Jay Spencer- Hyatt Regency Orlando 6/26/16 to 6/29/16 2777 July 1, 2016 City of Palm Beach Gardens $22,261.56 Retiree Insurance 2778 July 5, 2016 Pension Resource Center $2,626.99 Administrative Fee - July 2016 2779 July 5, 2016 Gabriel Roeder Smith & Company $8,499.00 Acturial Services Rendered through 5-31-16 2780 July 5, 2016 Cherry Bekaert LLP $2,650.00 Auditor Fee - 5-31-2016 2781 July 5, 2016 Klausner, Kaufman, Jensen & Levinson $1,035.00 Legal Services Rendered through 5-31-16 2782 July 5, 2016 United Members Insurance, Inc. $1,013.00 Commercial Package Policy General Liability Insurance Seneca Insurance - Policy# UGL 5331094 Renewal 2783 July 5, 2016 Jay Spencer $985.84 Travel Expense Reimbursement - FPPTA Conference 2784 August 1, 2016 City of Palm Beach Gardens $22,261.56 Retiree Insurance 2785 August 1, 2016 City of Palm Beach Gardens $1,713.21 Retiree Insurance 2786 August 2, 2016 FPPTA $500.00 Registered Marc Glass- Fall Trustee School 9/25-9/28/16 2787 August 2, 2016 Hyatt Regency Coconut Point $567.00 Reservations for Marc Glass FPPTA School 9/25-9/27/16 2788 August 2, 2016 Klausner, Kaufman, Jensen & Levinson $900.00 Legal Services Rendered through 6-29-16 2789 August 2, 2016 Rhumbline Advisers $5,919.00 Investment Advisory Fee - 2nd Quarter 2016 2790 August 2, 2016 Highland Capital Management, LLC $27,118.79 Management Fee - 2nd Quarter 2016 2791 August 2, 2016 Gabriel Roeder Smith & Company $1,453.00 Actuarial Services Rendered through 6-30-16 2792 August 2, 2016 Pension Resource Center $2,671.33 Administrative Fee - August 2016 2793 August 2, 2016 The Bogdahn Group $5,847.45 Investment Consulting Fee 2794 August 18, 2016 Greg Mull $260.37 Travel Expense Reimbursement - FPPTA Conference Orlando, FL 6/26/2016 - 6/29/2016 2795 September 1, 2016 City of Palm Beach Gardens $26,984.49 Retiree Insurance 2796 September 1, 2016 Pension Resource Center $2,625.77 Administrative Fee - Sept 2016 2797 September 1, 2016 Gabriel Roeder Smith & Company $4,293.00 Actuarial Services Rendered through 7-31-2016 2798 September 1, 2016 Klausner, Kaufman, Jensen & Levinson $810.00 Legal Services Rendered through 7-31-2016 2799 September 1, 2016 FPPTA $500.00 Register Greg Mull - Fall Trustee School 9/25/2016 - 9/28/2016 2800 September 1, 2016 Hyatt Regency Coconut Point $567.00 Reservation for Greg Mull -FPPTA School Sept 25-28,2016 Total: $180,923.65 Paid by Custodian Salem Trust $4,943.65 2nd Quarter 2016 - Management Fee Total $185,867.30 Chair___________________________ Secretary___________________________ Date_______________________________ En d O c t o b e r E n d N o v e m b e r E n d D e c e m b e r E n d J a n u a r y E n d Fe b r u a r y E n d M a r c h E n d A p r i l E n d M a y E n d J u n e E n d J u l y E n d August Year-To-Date In c o m e : 40 0 0 Em p l o y e r C o n t r i b u t i o n s 2 , 8 9 7 , 7 5 4 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 .0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 2 , 8 9 7 , 7 5 4 . 0 0 41 0 0 Em p l o y e e C o n t r i b u t i o n s 3 4 , 8 3 0 . 0 8 3 5 , 2 0 7 . 4 0 5 2 , 5 1 2 . 2 8 3 5 ,3 9 0 . 6 5 3 4 , 5 5 9 . 8 6 3 5 , 2 0 3 . 2 9 3 5 , 2 3 6 . 4 9 3 4 , 8 9 0 . 3 6 3 5 , 2 4 8 . 5 1 53,256.12 36,748.23 423,083.27 Re a l i z e d G a i n / L o s s - S a l e m T r u s t 42 1 0 Eq u i t i e s (2 7 , 3 1 4 . 5 6 ) ( 3 1 , 5 3 1 . 2 6 ) ( 2 5 , 3 2 9 . 8 2 ) ( 7 3 , 5 5 8 . 9 1 ) ( 3 7 , 1 4 0 .0 2 ) 3 5 , 0 9 9 . 6 0 1 3 , 3 8 8 . 5 6 ( 8 , 4 3 0 . 6 1 ) ( 2 9 , 6 3 9 . 6 9 ) 1 3 , 9 4 3 . 6 0 (4,717.51) (175,230.62) 42 2 0 Fi x e d I n c o m e 5, 4 1 3 . 1 8 ( 1 , 0 3 9 . 5 5 ) ( 1 , 5 7 1 . 0 4 ) 5 0 0 . 0 1 1 , 7 4 4 . 8 5 ( 8 0 3 . 3 6 ) 5 ,494.28 (1,293.92) 6,864.03 1,464.25 (16,594.44) 178.29 42 3 0 Ot h e r A s s e t s - R h u m b L i n e 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 ( 6 , 3 3 5.77) 0.00 0.00 0.00 0.00 (6,335.77) Un r e a l i z e d G a i n / L o s s - S a l e m T r u s t 43 1 0 Eq u i t i e s 46 3 , 4 1 7 . 1 1 7 6 , 3 7 7 . 4 5 ( 1 1 9 , 3 9 7 . 6 2 ) ( 4 5 3 , 1 9 3 . 1 5 ) ( 8 3 , 5 8 0 . 42 ) 4 1 8 , 6 2 0 . 4 2 ( 7 9 , 5 9 9 . 4 2 ) 1 5 9 , 8 0 7 . 8 7 ( 1 1 5 , 0 4 2 . 8 2 ) 2 9 7 , 5 82.83 (51,088.61) 513,903.64 43 2 0 Fi x e d I n c o m e (3 3 , 8 6 9 . 9 9 ) ( 3 8 , 5 3 3 . 0 7 ) ( 1 3 8 , 5 3 3 . 8 7 ) 1 7 2 , 2 9 6 . 6 7 1 2 3 , 6 1 9 .2 2 2 6 3 , 5 5 3 . 2 6 7 8 , 1 6 1 . 8 3 ( 6 5 , 4 0 5 . 4 0 ) 2 9 7 , 0 7 3 . 6 9 1 2 4 , 1 6 6 . 52 (35,011.61) 747,517.25 43 3 0 Ot h e r A s s e t s - R h u m b L i n e 2 , 5 3 2 , 5 9 8 . 0 3 4 0 1 , 7 1 7 . 6 2 ( 1 , 0 9 2 , 24 1 . 5 9 ) ( 1 , 9 8 7 , 0 6 1 . 2 9 ) 1 7 1 , 8 0 1 . 0 3 2 , 6 0 6 , 8 8 5 . 7 3 2 7 5 , 7 5 9 . 99 685,303.66 136,090.42 1,517,534.03 197,255.45 5,445,6 43.08 44 0 0 Re a l i z e d G a i n / L o s s - M g r H e l d 44 0 4 Am e r i c a n C o r e R e a l t y 0. 0 0 0 . 0 0 1 6 , 6 4 0 . 7 0 0 . 0 0 0 . 0 0 1 7 , 4 5 6 . 6 7 0 . 0 0 0 . 0 0 ( 1 7 , 8 4 8 . 4 0) 0.00 0.00 16,248.97 45 0 0 Un r e a l i z e d G a i n / L o s s - M g r H e l d 45 0 4 Am e r i c a n C o r e R e a l t y 0. 0 0 0 . 0 0 7 4 , 6 0 0 . 8 5 0 . 0 0 0 . 0 0 6 3 , 2 1 5 . 0 2 0 . 0 0 0 . 0 0 2 9 , 5 2 7 . 2 2 0.00 0.00 167,343.09 45 1 6 Dr e y f u s I n t e r n a t i o n a l B o n d 0 . 0 0 0 . 0 0 ( 3 8 , 5 1 1 . 0 1 ) 0 . 0 0 0 . 00 4 4 , 8 1 8 . 4 4 0 . 0 0 0 . 0 0 1 8 , 7 6 1 . 2 1 0 . 0 0 0 . 0 0 2 5 , 0 6 8 . 6 4 45 2 8 Op p e n h e i m e r I n t e r n a t i o n a l B o n d 0 . 0 0 0 . 0 0 ( 8 , 8 9 2 . 5 4 ) 0 . 0 0 0 . 0 0 2 3 , 0 8 4 . 9 9 0 . 0 0 0 . 0 0 1 9 , 8 9 0 . 5 2 0 . 0 0 0 . 0 0 3 4 , 0 8 2 . 9 7 45 3 9 Va n g u a r d G l o b a l E q u i t y 0 . 0 0 0 . 0 0 6 7 , 7 6 6 . 5 3 0 . 0 0 0 . 0 0 ( 6 , 3 43 . 5 7 ) 0 . 0 0 0 . 0 0 1 2 , 6 8 7 . 1 4 0 . 0 0 8 2 , 4 6 6 . 4 0 1 5 6 , 5 7 6 . 5 0 45 4 1 Va n g u a r d I n t e r n a t i o n a l G r o w t h 0 . 0 0 0 . 0 0 4 6 , 8 3 5 . 6 4 0 . 0 0 0 .0 0 ( 4 9 , 2 9 6 . 6 9 ) 0 . 0 0 0 . 0 0 1 2 , 1 4 0 . 2 3 0 . 0 0 ( 2 7 , 4 8 9 . 9 1 ) ( 1 7 , 8 10.73) 45 4 2 Va n g u a r d I n t e r n a t i o n a l V a l u e 0 . 0 0 0 . 0 0 ( 6 6 , 2 3 5 . 9 3 ) 0 . 0 0 0. 0 0 ( 1 2 , 1 5 2 . 4 9 ) 0 . 0 0 0 . 0 0 3 , 0 3 8 . 1 2 0 . 0 0 1 7 3 , 2 6 9 . 2 3 9 7 , 9 1 8 .93 46 0 0 In t e r e s t & D i v i d e n d I n c o m e 4 8 , 3 3 0 . 7 2 6 2 , 1 2 2 . 8 8 2 8 1 , 0 4 0 .7 4 5 5 , 6 8 4 . 3 4 5 5 , 2 8 2 . 4 4 1 0 7 , 6 8 0 . 2 2 5 1 , 1 3 5 . 4 5 5 8 , 0 5 9 . 1 8 1 2 1,367.24 51,296.93 62,127.75 954,127.89 47 1 0 Se c u r i t i e s L i t i g a t i o n 82 . 6 9 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 8 2 . 6 9 48 0 0 Sa l e m T r u s t A d j u s t m e n t s 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0.00 (4,340.59) 0.00 0.00 (4,340.59) 48 0 6 Rh u m b L i n e R e d e m p t i o n 0. 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 ( 2 , 4 1 0 . 1 0 ) 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 ( 2,410.10) 48 0 7 Rh u m b L i n e T r a n s a c t i o n s 0. 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 2 0 5 , 7 1 2 . 7 3 2 05,712.73 To t a l I n c o m e 5, 9 2 1 , 2 4 1 . 2 6 5 0 4 , 3 2 1 . 4 7 ( 9 5 1 , 3 1 6 . 6 8 ) ( 2 , 2 4 9 , 9 4 1 . 6 8 ) 2 6 6 ,2 8 6 . 9 6 3 , 5 4 7 , 0 2 1 . 5 3 3 7 0 , 8 3 1 . 3 1 8 6 2 , 9 3 1 . 1 4 5 2 5 , 8 1 6 . 8 3 2 , 059,244.28 622,677.71 11,479,114.13 En d O c t o b e r E n d N o v e m b e r E n d D e c e m b e r E n d J a n u a r y E n d Fe b r u a r y E n d M a r c h E n d A p r i l E n d M a y E n d J u n e E n d J u l y E n d August Year-To-Date Ex p e n s e : 50 0 0 Be n e f i t P a y m e n t s 19 4 , 3 3 3 . 5 7 1 9 4 , 3 3 3 . 5 7 1 9 4 , 3 3 3 . 5 7 1 9 4 , 3 3 3 . 5 7 2 2 3 , 7 5 8 . 3 1 2 32 , 0 7 6 . 7 5 2 4 7 , 8 8 0 . 9 0 2 4 7 , 8 8 0 . 9 0 2 5 7 , 2 7 2 . 9 0 2 5 7 , 2 7 2 . 9 0 2 6 5,891.48 2,509,368.42 50 1 0 Be n e f i c i a r y P a y m e n t s 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 7 , 286.39 80,150.29 50 2 0 Di s a b i l i t y P a y m e n t s 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5. 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 ,735.14 22,735.14 250,086.54 51 0 0 Re f u n d o f C o n t r i b u t i o n s 5 , 4 2 6 . 7 1 0 . 0 0 0 . 0 0 0 . 0 0 2 , 6 1 9 . 2 1 0. 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 8 , 0 4 5 . 9 2 53 0 0 DR O P D i s t r i b u t i o n s 4 7 , 6 1 3 . 6 7 4 0 , 0 0 0 . 0 0 0 . 0 0 8 0 , 0 0 0 . 0 0 1 0 0, 0 0 0 . 0 0 2 0 , 0 0 0 . 0 0 2 5 , 3 2 0 . 6 4 8 8 , 0 0 0 . 0 0 1 7 6 , 1 5 2 . 8 5 8 5 , 0 0 0 .00 24,500.00 686,587.16 53 1 0 DR O P D i s t r i b u t i o n s - M o n t h l y 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 ,9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0 . 0 0 4 , 9 0 0.00 6,150.00 55,150.00 60 0 0 Cu s t o d i a n F e e s 0. 0 0 0 . 0 0 4 , 5 7 7 . 9 7 0 . 0 0 0 . 0 0 4 , 4 7 1 . 0 6 0 . 0 0 0 . 0 0 4 , 9 4 3 . 6 5 0 . 0 0 0.00 13,992.68 60 2 0 In v e s t m e n t C o n s u l t a n t F e e s 0 . 0 0 0 . 0 0 5 , 5 6 9 . 0 0 0 . 0 0 0 . 0 0 5 ,5 6 9 . 0 0 0 . 0 0 0 . 0 0 5 , 8 4 7 . 4 5 0 . 0 0 0 . 0 0 1 6 , 9 8 5 . 4 5 60 4 0 In v e s t m e n t M a n a g e m e n t F e e s 0 . 0 0 0 . 0 0 4 7 , 1 2 9 . 1 3 0 . 0 0 0 . 0 0 47 , 3 5 9 . 4 9 0 . 0 0 0 . 0 0 5 0 , 3 4 1 . 4 3 0 . 0 0 0 . 0 0 1 4 4 , 8 3 0 . 0 5 61 0 0 Ac t u a r y F e e s 0. 0 0 0 . 0 0 1 1 , 7 8 2 . 0 0 0 . 0 0 2 , 9 8 7 . 0 0 3 , 9 6 4 . 0 0 0 . 0 0 3 , 5 9 4 . 0 0 7 , 684.00 8,499.00 1,453.00 39,963.00 61 1 0 Ad m i n i s t r a t o r F e e s 2, 5 7 5 . 0 0 2 , 6 0 2 . 0 0 2 , 5 7 5 . 0 0 2 , 5 7 5 . 0 0 2 , 6 0 4 . 1 5 2 , 6 0 4 . 4 0 2 , 5 75.00 2,606.20 2,575.00 2,575.00 2,646.89 28,513.64 61 2 0 Au d i t o r F e e s 0. 0 0 0 . 0 0 0 . 0 0 2 , 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 1 0 , 5 0 0 . 0 0 0 . 0 0 2 , 6 5 0 . 00 0.00 15,150.00 61 3 0 Ba n k C h a r g e s 16 5 . 9 9 5 6 . 6 0 2 2 8 . 7 2 1 9 4 . 3 0 2 0 8 . 3 1 2 2 2 . 9 3 1 9 2 . 6 5 2 1 0 . 0 2 1 8 5 . 29 221.91 215.20 2,101.92 61 5 0 Le g a l F e e s 0. 0 0 8 3 . 1 0 0 . 0 0 1 , 2 1 5 . 0 0 2 , 1 7 0 . 0 0 7 6 5 . 0 0 1 , 0 1 2 . 5 0 3 , 9 6 0 . 0 0 1,102.50 1,035.00 900.00 12,243.10 61 6 0 Po s t a g e 0. 0 0 0 . 0 0 0 . 0 0 0 . 0 0 2 2 . 0 5 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 5 1 . 9 9 2 4 . 4 4 9 8 . 4 8 62 0 0 Tr u s t e e E x p e n s e - C o n f e r e n c e 3 , 4 4 9 . 0 5 0 . 0 0 1 , 0 0 5 . 0 0 0 . 0 0 3 39 . 0 5 3 , 7 0 9 . 6 3 1 , 3 0 5 . 9 5 1 , 0 5 7 . 0 0 1 , 6 0 7 . 0 0 9 8 5 . 8 4 1 , 3 2 7 . 3 7 14,785.89 62 2 0 An n u a l M e m b e r s h i p F e e s 0 . 0 0 0 . 0 0 6 9 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0.00 0.00 0.00 0.00 690.00 63 0 0 Fi d u c i a r y L i a b i l i t y I n s u r a n c e 9 2 9 . 8 8 0 . 0 0 5 , 6 9 4 . 6 6 0 . 0 0 0. 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 6 , 6 2 4 . 5 4 63 2 0 Ge n e r a l L i a b i l i t y I n s u r a n c e 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0.00 0.00 0.00 1,013.00 0.00 1,013.00 To t a l E x p e n s e 28 9 , 4 1 5 . 4 0 2 7 1 , 9 9 6 . 8 0 3 0 8 , 5 0 6 . 5 8 3 1 5 , 2 3 9 . 4 0 3 6 9 , 6 2 9 . 6 1 3 55 , 6 6 3 . 7 9 3 1 3 , 2 0 9 . 1 7 3 9 2 , 7 2 9 . 6 5 5 4 2 , 6 3 3 . 6 0 3 9 4 , 2 2 6 . 1 7 3 3 3,129.91 3,886,380.08 Re s e r v e F u n d L a s t P e r i o d 7 4 , 0 9 2 , 8 9 6 . 0 5 7 9 , 7 2 4 , 7 2 1 . 9 1 7 9, 9 5 7 , 0 4 6 . 5 8 7 8 , 6 9 7 , 2 2 3 . 3 2 7 6 , 1 3 2 , 0 4 2 . 2 4 7 6 , 0 2 8 , 6 9 9 . 5 9 79 , 2 2 0 , 0 5 7 . 3 3 7 9 , 2 7 7 , 6 7 9 . 4 7 7 9 , 7 4 7 , 8 8 0 . 9 6 7 9 , 7 3 1 , 0 6 4 . 1 9 81,396,082.30 74,092,896.05 Ba l a n c e T o / F r o m R e s e r v e 5 , 6 3 1 , 8 2 5 . 8 6 2 3 2 , 3 2 4 . 6 7 ( 1 , 2 5 9, 8 2 3 . 2 6 ) ( 2 , 5 6 5 , 1 8 1 . 0 8 ) ( 1 0 3 , 3 4 2 . 6 5 ) 3 , 1 9 1 , 3 5 7 . 7 4 5 7 , 6 22.14 470,201.49 (16,816.77) 1,665,018.11 289,547.80 7,5 92,734.05 TO T A L R E S E R V E F U N D 7 9 , 7 2 4 , 7 2 1 . 9 1 7 9 , 9 5 7 , 0 4 6 . 5 8 7 8 , 6 9 7 , 22 3 . 3 2 7 6 , 1 3 2 , 0 4 2 . 2 4 7 6 , 0 2 8 , 6 9 9 . 5 9 7 9 , 2 2 0 , 0 5 7 . 3 3 7 9 , 2 7 7 ,679.47 79,747,880.96 79,731,064.19 81,396,082.30 81,68 5,630.10 81,685,630.10 Pa l m B e a c h G a r d e n s P o l i c e St a t e m e n t o f I n c o m e a n d E x p e n s e FY 2 0 1 6 Ac c o u n t D e s c r i p t i o n Ac c o u n t D e s c r i p t i o n Palm Beach Gardens Police Investment Performance Review Period Ended June 30, 2016 1 Market Environment Page 1 2 Compliance Report Page 10 3 Asset Allocation Compliance Page 11 4 Asset Allocation Pie Chart Page 13 5 Asset Allocation & Performance Trailing Periods (gross)Page 15 6 Asset Allocation & Performance Trailing Periods (net)Page 17 7 Asset Allocation & Performance Fiscal Year Periods (gross)Page 19 8 Asset Allocation & Performance Fiscal Year Periods (net)Page 21 9 Historical Rolling Performance Total Fund Page 23 10 Historical Rolling Performance Total Fund Policy Page 24 11 Total Fund Composite Returns Based Analysis Page 25 12 Rhumbline S&P 500 Equity Returns Based Analysis Page 28 13 Rhumbline S&P 400 Equity Returns Based Analysis Page 31 14 Rhumbline S&P 600 Equity Returns Based Analysis Page 34 15 Highland Capital Equity Returns Based Analysis Page 37 16 Vanguard International Equity Returns Based Analysis Page 40 17 Highland Capital Fixed Income Returns Based Analysis Page 42 18 Oppenheimer International Fixed Income Returns Based Analysis Page 45 19 American Realty Returns Based Analysis Page 47 20 Benchmark History Page 49 21 Vanguard International Value Performance Review Page 51 22 Vanguard International Growth Performance Review Page 53 23 Vanguard International Global Equity Performance Review Page 55 24 Dreyfus International Bond A Performance Review Page 57 25 Oppenheimer International Bond A Performance Review Page 59 26 TBG Info Page 61 27 Definitions & Disclosure Pages Page 63 Table Of Contents 2n d Q u a r t e r 2 0 1 6 M a r k e t E n v i r o n m e n t Pa g e 1  Th e 2 nd qu a r t e r o f 2 0 1 6 w a s v e r y v o l a t i l e a s f i n a n c i a l m a r k e t r e t u r n s w e r e in f l u e n c e d b y c e n t r a l b a n k p o l i c y e x p e c t a t i o n s , r i s i n g c o m m o d i t y p r i c e s , mi x e d e c o n o m i c d a t a , a n d i n c r e a s e d g l o b a l p o l i t i c a l a n d e c o n o m i c un c e r t a i n t y c a u s e d b y t h e U . K . ’ s J u n e v o t e t o d i s c o n t i n u e i t s m e m b e r s h i p in t h e E u r o p e a n U n i o n ( E U ) . D e s p i t e t h i s v o l a t i l i t y , a s s e t c l a s s r e s u l t s f o r th e p e r i o d w e r e b r o a d l y p o s i t i v e w i t h t h e e x c e p t i o n o f i n t e r n a t i o n a l de v e l o p e d m a r k e t r e t u r n s . H i g h e r r i s k a s s e t s , s u c h a s s m a l l c a p e q u i t i e s , em e r g i n g m a r k e t s t o c k s , a n d i n v e s t m e n t g r a d e a n d h i g h y i e l d c o r p o r a t e bo n d s , p o s t e d t h e s t r o n g e s t r e t u r n s t h r o u g h o u t t h e q u a r t e r .  Le d b y t h e s m a l l c a p R u s s e l l 2 0 0 0 ’ s r e t u r n o f 3 . 8 % , U . S . s t o c k m a r k e t in d i c e s w e r e p o s i t i v e f o r t h e 2 nd qu a r t e r . I n c o n t r a s t , f o r t h e 1 - y e a r p e r i o d , do m e s t i c l a r g e c a p s t o c k i n d i c e s w e r e t h e b e s t p e r f o r m e r s , p o s t i n g mo d e r a t e g a i n s , w h i l e d o m e s t i c s m a l l c a p i n d i c e s p o s t e d n e g a t i v e r e t u r n s . Br o a d i n t e r n a t i o n a l e q u i t y i n d i c e s t r a i l e d d o m e s t i c s t o c k i n d i c e s t h r o u g h bo t h t h e q u a r t e r a n d p r i o r y e a r . I n U . S . D o l l a r ( U S D ) t e r m s , r e t u r n s f o r t h e MS C I E m e r g i n g M a r k e t s I n d e x ( n e t ) w e r e m a r g i n a l l y p o s i t i v e f o r t h e qu a r t e r r e t u r n i n g 0 . 7 % w h i l e d e v e l o p e d m a r k e t e q u i t i e s , r e p r e s e n t e d b y th e M S C I E A F E I n d e x ( n e t ) , r e t u r n e d - 1 . 5 % . B o t h i n d i c e s h a v e ex p e r i e n c e d d o u b l e d i g i t l o s s e s o v e r t h e 1 - y e a r p e r i o d , r e t u r n i n g - 1 2 . 1 % an d - 1 0 . 2 % r e s p e c t i v e l y . .  Th e U . S . T r e a s u r y y i e l d c u r v e f l a t t e n e d t h r o u g h o u t t h e 2 nd qu a r t e r w i t h ne a r - t e r m r a t e s s t a y i n g r e l a t i v e l y f l a t a n d r a t e s a t t h e m e d i u m t o l o n g e n d of t h e y i e l d c u r v e f a l l i n g n e a r a l l - t i m e l o w s . D e s p i t e t h e i r l o w y i e l d s , in v e s t m e n t g r a d e b o n d s h a v e o u t p e r f o r m e d b r o a d d o m e s t i c a n d in t e r n a t i o n a l e q u i t y i n d i c e s o v e r t h e p a s t t w e l v e m o n t h s w i t h t h e B a r c l a y s Ag g r e g a t e I n d e x r e t u r n i n g 2 . 2 % f o r t h e 2 nd qu a r t e r a n d 6 . 0 % f o r t h e t r a i l i n g 1- y e a r p e r i o d . I n v e s t m e n t g r a d e c o r p o r a t e b o n d s o u t p e r f o r m e d t h e re m a i n i n g i n v e s t m e n t g r a d e s e c t o r s f o r b o t h t h e q u a r t e r a n d 1 - y e a r p e r i o d wi t h t h e B a r c l a y s U . S . C o r p o r a t e I n v e s t m e n t G r a d e I n d e x r e t u r n i n g 3 . 6 % an d 7 . 9 % r e s p e c t i v e l y . C o r p o r a t e i s s u e s e x p e r i e n c e d t a i l w i n d s f r o m t h e i r hi g h e r d u r a t i o n s r e l a t i v e t o o t h e r a r e a s o f t h e f i x e d i n c o m e m a r k e t , a s w e l l as t i g h t e n i n g c r e d i t s p r e a d s . So u r c e : I n v e s t m e n t M e t r i c s The Market Environment Major Market Index Performance As of June 30, 2016 0. 1 % 3.6%1.1%1.7%2.0%2.2%3.8%3.2%2.5%2.6%2.5% 0. 7 % -1 . 5 % -0 . 6 % -2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 3- M o n t h T - B i l l Ba r c l a y s C o r p I G Ba r c l a y s M B S Ba r c l a y s U S T I P S Ba r c l a y s U S G o v t Ba r c l a y s U S A g g Ru s s e l l 2 0 0 0 Ru s s e l l M i d C a p Ru s s e l l 1 0 0 0 Ru s s e l l 3 0 0 0 S& P 5 0 0 MS C I E m e r g M k t s MS C I E A F E MS C I A C W x U S Qu a r t e r P e r f o r m a n c e 0.1%7.9%4.3%4.4%6.0%6.0% -6 . 7 % 0.6%2.9%2.1%4.0% -1 2 . 1 % -1 0 . 2 % -1 0 . 2 % -1 4 . 0 % - 1 2 . 0 % - 1 0 . 0 % - 8 . 0 % - 6 . 0 % - 4 . 0 % - 2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 3- M o n t h T - B i l l Ba r c l a y s C o r p I G Ba r c l a y s M B S Ba r c l a y s U S T I P S Ba r c l a y s U S G o v t Ba r c l a y s U S A g g Ru s s e l l 2 0 0 0 Ru s s e l l M i d C a p Ru s s e l l 1 0 0 0 Ru s s e l l 3 0 0 0 S& P 5 0 0 MS C I E m e r g M k t s MS C I E A F E MS C I A C W x U S 1- Y e a r P e r f o r m a n c e Pa g e 2 So u r c e : I n v e s t m e n t M e t r i c s The Market Environment Do m e s t i c E q u i t y S t y l e I n d e x P e r f o r m a n c e As of June 30, 2016  U. S . e q u i t y i n d e x r e t u r n s w e r e p o s i t i v e a c r o s s t h e c a p i t a l i z a t i o n s p e c t r u m du r i n g t h e 2 nd qu a r t e r . D o m e s t i c s t o c k p r i c e s i n c r e a s e d t h r o u g h A p r i l a n d Ma y , f u e l e d b y l a r g e l y s u p p o r t i v e m a c r o e c o n o m i c d a t a s u g g e s t i n g t h a t t h e ec o n o m i c w e a k n e s s e x p e r i e n c e d a t t h e b e g i n n i n g o f t h e y e a r h a d b e e n tr a n s i t o r y . T h e s t r e n g t h i n e c o n o m i c d a t a l e d m a r k e t p a r t i c i p a n t s t o co n s i d e r a n i n c r e a s e d p r o b a b i l i t y f o r t h e U . S . F e d e r a l R e s e r v e ( F e d ) t o ti g h t e n m o n e t a r y p o l i c y b y i n c r e a s i n g s h o r t - t e r m i n t e r e s t r a t e s a s e a r l y a s Ju n e . H o w e v e r , f o r e c a s t s s u r r o u n d i n g t h e t i m i n g o f f u t u r e F e d r a t e h i k e s we r e p u s h e d o u t a f t e r t h e r e l e a s e o f M a y ’ s n o n - f a r m p a y r o l l r e p o r t , w h i c h ca m e i n m u c h w e a k e r t h a n e x p e c t e d . T h e p o s s i b i l i t y o f a n e a r - t e r m r a t e in c r e a s e b e c a m e e v e n m o r e r e m o t e n e a r t h e e n d o f t h e q u a r t e r w h e n t h e U. K . u n e x p e c t e d l y v o t e d t o e x i t t h e E U , c r e a t i n g p o l i t i c a l a n d e c o n o m i c un c e r t a i n t y t h r o u g h o u t g l o b a l f i n a n c i a l m a r k e t s . D e m a n d f o r e q u i t i e s re m a i n s h i g h a s i n v e s t o r s s t r u g g l e t o f i n d o t h e r s o u r c e s o f p o r t f o l i o r e t u r n in t h e c u r r e n t l o w i n t e r e s t r a t e e n v i r o n m e n t .  Va l u e s t o c k s o u t p e r f o r m e d g r o w t h s t o c k s a c r o s s t h e c a p i t a l i z a t i o n sp e c t r u m f o r t h e s e c o n d s t r a i g h t q u a r t e r . T h i s v a l u e o u t p e r f o r m a n c e w a s ge n e r a l l y d u e t o i n v e s t o r s s e e k i n g t h e p e r c e i v e d s a f e t y o f v a l u e s t o c k s gi v e n v a l u a t i o n l e v e l s a n d t h e v o l a t i l i t y e x p e r i e n c e d t h r o u g h o u t t h e p e r i o d . Va l u e i n d i c e s w e r e a l s o b e n e f i c i a r i e s o f r i s i n g o i l a n d n a t u r a l g a s p r i c e s a s va l u e - b a s e d b e n c h m a r k s h a v e h i g h e r a l l o c a t i o n s t o t h e E n e r g y s e c t o r . Mi d c a p v a l u e s t o c k s w e r e t h e b e s t p e r f o r m e r s a c r o s s t h e v a l u e s p e c t r u m , re t u r n i n g 4 . 8 % d u r i n g t h e p e r i o d , f o l l o w e d b y l a r g e c a p v a l u e ( 4 . 6 % ) a n d sm a l l c a p v a l u e ( 4 . 3 % ) s t o c k s r e s p e c t i v e l y . H o w e v e r , a c r o s s t h e g r o w t h sp e c t r u m , s m a l l c a p g r o w t h s t o c k s ( 3 . 2 % ) w e r e t h e b e s t p e r f o r m e r s fo l l o w e d b y m i d c a p g r o w t h s t o c k s ( 1 . 6 % ) . T h e R u s s e l l 1 0 0 0 G r o w t h In d e x , r e p r e s e n t i n g l a r g e c a p s t o c k s , h a d t h e w e a k e s t p e r f o r m a n c e re t u r n i n g 0 . 6 % f o r t h e q u a r t e r . S t y l e t r e n d s a r e m i x e d o v e r t h e 1 - y e a r pe r i o d . T h e R u s s e l l M i d c a p V a l u e I n d e x w a s t h e b e s t p e r f o r m e r ( 3 . 2 % ) , an d t h e R u s s e l l 2 0 0 0 G r o w t h I n d e x w a s t h e w o r s t p e r f o r m e r ( - 1 0 . 8 % ) .  Fr o m a v a l u a t i o n p e r s p e c t i v e , e q u i t y v a l u a t i o n s a p p e a r s t r e t c h e d r e l a t i v e t o hi s t o r i c a l l e v e l s b a s e d o n t h e i r f o r w a r d P r i c e / E a r n i n g s r a t i o s ( P / E ) . T h e la r g e g r o w t h , m i d g r o w t h , a n d s m a l l v a l u e i n d i c e s h a v e v a l u a t i o n l e v e l s cl o s e t o t h e i r r e s p e c t i v e h i s t o r i c a l a v e r a g e , w h i l e t h e r e m a i n i n g i n d i c e s f a l l be t w e e n 1 0 6 % a n d 1 1 4 % o f t h e i r 1 5 - y e a r a v e r a g e s . 3.2%3.8%4.3% 1. 6 % 3.2%4.8% 0. 6 % 2. 5 % 4.6% 0. 8 % 2. 6 % 4.6% 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 20 0 0 G r o w t h 20 0 0 I n d e x 20 0 0 V a l u e Mi d C a p G r o w t h Mi d C a p I n d e x Mi d C a p V a l u e 10 0 0 G r o w t h 10 0 0 I n d e x 10 0 0 V a l u e 30 0 0 G r o w t h 30 0 0 I n d e x 30 0 0 V a l u e Qu a r t e r P e r f o r m a n c e - R u s s e l l S t y l e S e r i e s -1 0 . 8 % -6 . 7 % -2 . 6 % -2.1%0.6%3.2%3.0%2.9%2.9%1.9%2.1%2.4% -1 2 . 0 % - 1 0 . 0 % - 8 . 0 % - 6 . 0 % - 4 . 0 % - 2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 20 0 0 G r o w t h 20 0 0 I n d e x 20 0 0 V a l u e Mi d C a p G r o w t h Mi d C a p I n d e x Mi d C a p V a l u e 10 0 0 G r o w t h 10 0 0 I n d e x 10 0 0 V a l u e 30 0 0 G r o w t h 30 0 0 I n d e x 30 0 0 V a l u e 1- Y e a r P e r f o r m a n c e - R u s s e l l S t y l e S e r i e s Pa g e 3 The Market Environment GI C S S e c t o r P e r f o r m a n c e & ( S e c t o r W e i g h t ) As of June 30, 2016 So u r c e : M o r n i n g s t a r D i r e c t  La r g e c a p s e c t o r p e r f o r m a n c e w a s g e n e r a l l y p o s i t i v e f o r t h e 2 nd qu a r t e r wi t h a l l b u t t w o s e c t o r s w i t h i n t h e R u s s e l l 1 0 0 0 I n d e x p o s t i n g g a i n s f o r t h e pe r i o d . T h e C o n s u m e r D i s c r e t i o n a r y a n d T e c h n o l o g y s e c t o r s w e r e t h e qu a r t e r ’ s o n l y l a g g a r d s r e t u r n i n g - 1 . 4 % a n d - 2 . 2 % r e s p e c t i v e l y . D e f e n s i v e an d i n t e r e s t r a t e s e n s i t i v e s e c t o r s o f t h e m a r k e t c o n t i n u e t o p e r f o r m w e l l as i n v e s t o r s a t t e m p t t o p r o x y d i v i d e n d i n c o m e a s a s u b s t i t u t e f o r p a l t r y in v e s t m e n t g r a d e b o n d y i e l d s d u e t o t h e p e r s i s t e n t l o w i n t e r e s t r a t e en v i r o n m e n t . U t i l i t i e s , T e l e c o m S e r v i c e s , a n d C o n s u m e r S t a p l e s a l l po s t e d s t r o n g q u a r t e r l y r e t u r n s . T h e s e t h r e e s e c t o r s a r e a l s o t h e o n l y se c t o r s t o p o s t d o u b l e - d i g i t r e t u r n s o v e r t h e p a s t y e a r , o u t p e r f o r m i n g a l l ot h e r s e c t o r s i n t h e R u s s e l l 1 0 0 0 I n d e x b y a c o n s i d e r a b l e m a r g i n . T h e En e r g y s e c t o r w a s a n o t a b l e p e r f o r m e r d u r i n g t h e q u a r t e r , r e t u r n i n g 1 1 . 1 % du e t o i n c r e a s i n g o i l a n d n a t u r a l g a s p r i c e s . S u p p l y d i s r u p t i o n s i n C a n a d a an d N i g e r i a , p a i r e d w i t h a d e c r e a s e i n p r o d u c t i o n f r o m U . S . s h a l e pr o d u c e r s , c o n t r i b u t e d t o r e d u c e d g l o b a l s u p p l y , w h i c h d r o v e e n e r g y pr i c e s h i g h e r . D e s p i t e a f a v o r a b l e q u a r t e r , E n e r g y r e t u r n s o v e r t h e 1 - y e a r pe r i o d c o n t i n u e t o r e p r e s e n t t h e w e a k e s t s e c t o r w i t h a r e t u r n o f - 6 . 9 % . Ma t e r i a l s ( - 1 . 3 % ) , H e a l t h C a r e ( - 3 . 7 % ) a n d F i n a n c i a l s ( - 2 . 7 % ) a l s o p o s t e d ne g a t i v e r e s u l t s o v e r t h e p r i o r y e a r .  Si m i l a r t o l a r g e c a p s e c t o r r e s u l t s , s m a l l c a p s e c t o r p e r f o r m a n c e w a s la r g e l y p o s i t i v e f o r t h e q u a r t e r . I n a d d i t i o n , s m a l l c a p s e c t o r p e r f o r m a n c e ge n e r a l l y o u t p a c e d c o r r e s p o n d i n g l a r g e c a p s e c t o r r e s u l t s . P e r f o r m a n c e in l a r g e a n d s m a l l c a p s e c t o r s a l s o h a d s i m i l a r o b s e r v a b l e t r e n d s . H i g h e r yi e l d i n g , d e f e n s i v e s e c t o r s a n d c o m m o d i t y p r i c e s e n s i t i v e i n d u s t r i e s w e r e th e b e s t p e r f o r m e r s d u r i n g t h e 2 nd qu a r t e r . I n c o n t r a s t , o v e r t h e 1 - y e a r pe r i o d , a l l R u s s e l l 2 0 0 0 I n d e x s e c t o r s u n d e r p e r f o r m e d t h e i r c o r r e s p o n d i n g Ru s s e l l 1 0 0 0 I n d e x s e c t o r s w i t h t h e e x c e p t i o n o f t h e F i n a n c i a l s s e c t o r . Th e E n e r g y ( - 3 8 . 3 % ) , H e a l t h C a r e ( - 2 1 . 3 % ) , a n d C o n s u m e r D i s c r e t i o n a r y (- 1 4 . 2 % ) s e c t o r s w e r e t h e l a r g e s t d e t r a c t o r s o v e r t h e 1 - y e a r p e r i o d . L i k e th e l a r g e c a p i n d e x , C o n s u m e r S t a p l e s ( 1 1 . 5 % ) , T e l e c o m S e r v i c e s (1 9 . 0 % ) , a n d U t i l i t i e s ( 3 0 . 1 % ) s i g n i f i c a n t l y o u t p e r f o r m e d o t h e r s e c t o r s .  Us i n g t h e S & P 5 0 0 a s a p r o x y , f o r w a r d P / E r a t i o s f o r s i x G I C S s e c t o r s we r e b e l o w t h e i r l o n g - t e r m ( 2 0 - y e a r ) a v e r a g e s a t q u a r t e r - e n d . T h e Te c h n o l o g y a n d H e a l t h C a r e s e c t o r s w e r e t r a d i n g a t t h e l a r g e s t d i s c o u n t t o th e i r l o n g - t e r m a v e r a g e P / E r a t i o s . I n c o n t r a s t , t h e E n e r g y a n d U t i l i t i e s se c t o r v a l u a t i o n s w e r e t h e m o s t e x t e n d e d r e l a t i v e t o t h e i r h i s t o r i c a l P / E ra t i o s . 31.5%23.4% -1 . 3 % 3. 6 % 5. 7 % -3 . 7 % -2 . 7 % -6 . 9 % 17.2% 1. 7 % 7. 1 % 7. 3 % 3. 9 % -2 . 2 % 1. 4 % 6. 1 % 2. 5 % 11.1% 4. 6 % -1 . 4 % -1 0 . 0 % 0 . 0 % 1 0 . 0 % 2 0 . 0 % 3 0 . 0 % Ut i l i t i e s ( 3 . 4 % ) Te l e c o m S e r v i c e s ( 2 . 6 % ) Ma t e r i a l s ( 3 . 2 % ) In f o T e c h n o l o g y ( 1 9 . 7 % ) In d u s t r i a l s ( 1 0 . 7 % ) He a l t h C a r e ( 1 3 . 9 % ) Fi n a n c i a l s ( 1 6 . 9 % ) En e r g y ( 6 . 7 % ) Co n s u m e r S t a p l e s ( 9 . 5 % ) Co n s u m e r D i s c ( 1 3 . 3 % ) Ru s s e l l 1 0 0 0 Quarter 1-Year 30.1%19.0% -4 . 6 % -3 . 4 % -6 . 4 % -2 1 . 3 % 2.3% -3 8 . 3 % 11.5% -1 4 . 2 % 10.1%11.5%13.1%2.6%3.1%4.8%4.4%8.9%9.7% -1 . 8 % -4 0 . 0 % - 3 0 . 0 % - 2 0 . 0 % - 1 0 . 0 % 0 . 0 % 1 0 . 0 % 2 0 . 0 % 3 0 . 0 % Ut i l i t i e s ( 4 . 0 % ) Te l e c o m S e r v i c e s ( 0 . 9 % ) Ma t e r i a l s ( 4 . 1 % ) In f o T e c h n o l o g y ( 1 7 . 7 % ) In d u s t r i a l s ( 1 3 . 1 % ) He a l t h C a r e ( 1 4 . 0 % ) Fi n a n c i a l s ( 2 6 . 3 % ) En e r g y ( 2 . 8 % ) Co n s u m e r S t a p l e s ( 3 . 6 % ) Co n s u m e r D i s c ( 1 3 . 6 % ) Ru s s e l l 2 0 0 0 Quarter 1-Year Pa g e 4 The Market Environment To p 1 0 I n d e x W e i g h t s & Q u a r t e r l y P e r f o r m a n c e f o r t h e R u s s e l l 1 0 0 0 & 2 0 0 0 As of June 30, 2016 So u r c e : M o r n i n g s t a r D i r e c t To p 1 0 W e i g h t e d S t o c k s To p 1 0 W e i g h t e d S t o c k s Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Ap p l e I n c 2 . 5 8 % - 1 1 . 7 % - 2 2 . 2 % I n f o r m a t i o n T e ch n o l o g y O l i n C o r p 0 . 2 5 % 4 4 . 3 % - 3 . 8 % M a t e r i a l s Ex x o n M o b i l C o r p 1 . 9 1 % 1 3 . 1 % 1 6 . 8 % E n e r g y Id a c o r p I n c 0 . 2 5 % 9. 8 % 4 9 . 2 % U t i l i t i e s Mi c r o s o f t C o r p 1 . 9 1 % - 6 . 7 % 1 9 . 1 % I n f o r m a t i o n T e c h n o l o g y P o r t l a n d G e n e r a l E l e c t r i c C o 0 . 2 4 % 1 2 . 6 % 3 7 . 4 % U t i l i t i e s Jo h n s o n & J o h n s o n 1 . 6 4 % 12 . 9 % 2 8 . 2 % H e a l t h C a r e G r a m e r c y P r op e r t y T r u s t 0 . 2 4 % 9 . 1 % 2 1 . 7 % F i n a n c i a l s Ge n e r a l E l e c t r i c C o 1 . 4 3 % - 0 . 2 % 22 . 3 % I n d u s t r i a l s C u r t i s s - W r i g h t C o r p 0 . 2 3 % 1 1 . 5 % 1 7 . 1 % I n d u s t r i a l s Am a z o n . c o m I n c 1 . 3 7 % 2 0 . 5 % 64 . 9 % C o n s u m e r D i s c r e t i o n a r y S o u t h w es t G a s C o r p 0 . 2 3 % 20 . 3 % 5 2 . 1 % U t i l i t i e s Be r k s h i r e H a t h a w a y I n c B 1 . 3 5 % 2 . 1 % 6 . 4 % F i n a n c i a l s M i cr o s e m i C o r p 0 . 2 3 % - 1 4 . 7 % - 6 .5% Information Technology AT & T I n c 1 . 3 1 % 1 1 . 7 % 2 8 . 4 % T e l e c o m m u n i c a t i o n S e r v i c e s H ea l t h c a r e R e a l t y T r u s t I n c 0 . 2 2 % 1 4 . 4 % 5 7 . 2 % F i n a n c i a l s Fa c e b o o k I n c A 1 . 2 6 % 0 . 2 % 3 3 . 2 % I n f o r m at i o n T e c h n o l o g y M e d i c a l P r o p e r t i e s Tr u s t I n c 0 . 2 2 % 1 9 . 0 % 2 4 . 8 % F i n a n c i a l s Ve r i z o n C o m m u n i c a t i o n s I n c 1 . 1 2 % 4 . 3 % 2 5 . 6 % T e l e c o m m u n i c a t i on S e r v i c e s W G L H o l d i n g s I n c 0 . 2 2 % - 1 . 5 % 3 4 . 5 % U t i l i t i e s To p 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) To p 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Li n k e d I n C o r p C l a s s A 0 . 1 1 % 6 5 . 5% - 8 . 4 % I n f o r m a t i o n T e c h n o l o g y M a g n u m H u n t e r Re s o u r c e s C o r p o r a t i o n 0 . 0 0 % 3 0 9 5 5 9 . 2 % 6 2 8 . 6 % E n e r g y De n b u r y R e s o u r c e s I n c 0 . 0 0 % 6 1 . 7 % - 4 2 . 6 % E n e r g y Ul t r a P e t r o l e u m C o r p 0 . 0 0 % 2 5 3 . 4 % - 8 5 . 9 % E n e r g y ON E O K I n c 0 . 0 5 % 6 1 . 7 % 2 9 . 8 % E n e r g y R y e r s o n Ho l d i n g C o r p 0 . 0 1 % 2 1 4 . 7 % 9 2 . 3 % M a t e r i a l s Ri c e E n e r g y I n c 0 . 0 1 % 5 9 . 8 % 1 1 . 4 % E n e r g y C l a y t o n Wi l l i a m s E n e r g y I n c 0 . 0 1 % 2 0 7 . 8 % - 5 8 . 2 % E n e r g y Me m o r i a l R e s o u r c e D e v e l o p m e n t C o r p 0. 0 1 % 5 6 . 0 % - 1 6 . 3 % E n e r g y F a i r mo u n t S a n t r o l H o l d i n g s I n c 0 . 0 3 % 2 0 7 . 2 % - 5 . 9 % E n e r g y So u t h w e s t e r n E n e r g y C o 0 . 0 2 % 5 5 . 9 % -4 4 . 7 % E n e r g y C e l a t o r P h a r m a c e u t i c al s I n c 0 . 0 6 % 1 7 3 . 6 % 1 2 4 7 . 3 % H e a l t h C a r e Zi l l o w G r o u p I n c C 0 . 0 2 % 5 2 . 9 % N / A I n f o r m a t i o n T e ch n o l o g y E Z C O R P I n c 0 . 02 % 1 5 4 . 5 % 1 . 7 % F i n a n c i a l s Ye l p I n c C l a s s A 0 . 0 1 % 5 2 . 7 % - 2 9 . 4 % I n f o r m a t i o n T e c h n o l o g y N o r t h A t l a n t i c Dr i l l i n g L t d 0 .0 0 % 1 4 6 . 0 % - 4 3 . 4 % E n e r g y Co n t i n e n t a l R e s o u r c e s I n c 0 . 0 2 % 49 . 1 % 6 . 8 % E n e r g y E c l i p s e R e s o u r ce s C o r p 0 . 0 1 % 1 3 1 . 9 % - 3 6 . 5 % E n e r g y Ta h o e R e s o u r c e s I n c 0 . 0 2 % 4 8 . 7 % 2 6 . 1 % M a t e r i a l s R a d i o O n e In c C l a s s D 0 . 0 0 % 1 2 4 . 6 % 0 . 6 % Consumer Discretionary Bo t t o m 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) Bo t t o m 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Su n E d i s o n I n c 0 . 0 0 % - 7 3 . 8 % - 9 9 . 5 % I n f o r m a t i o n T e c h n o l o g y C od e R e b e l C o r p 0 . 0 0 % - 9 8 . 9 % - 9 9 . 8% Information Technology Co b a l t I n t e r n a t i o n a l E n e r g y I n c 0 . 0 0 % - 5 4 . 9 % - 8 6 . 2% E n e r g y E n e r g y X X I L t d 0 . 0 0 % - 9 2 . 8 % - 9 8 . 3 % E n e r g y Of f i c e D e p o t I n c 0 . 0 0 % - 5 3 . 4 % - 6 1 . 8 % C on s u m e r D i s c r e t i o n a r y S e v e n t y S e v e n En e r g y I n c 0 . 0 0 % - 8 4 . 1 % - 9 7 . 9 % E n e r g y Le n d i n g C l u b C o r p 0 . 0 0 % - 4 8 . 2 % - 7 0 . 8 % F i n a n c i a ls F a i r w a y G r o u p H o l d i n g s C o r p A 0 .0 0 % - 8 1 . 5 % - 9 8 . 2 % Consumer Staples En d o I n t e r n a t i o n a l P L C 0 . 0 2 % - 4 4 . 6 % - 8 0 . 4 % H e a l t h C a r e T he J G W e n t w o r t h C o C l a s s A 0 . 0 0 % - 7 9 . 1 % - 9 7 . 2 % F i n a n c i a l s Io n i s P h a r m a c e u t i c a l s I n c 0 . 01 % - 4 2 . 5 % - 5 9 . 5 % H e a l t h C a r e I n f i n i t y P h a r m a ce u t i c a l s I n c 0 . 0 0 % - 7 4 . 8% - 8 7 . 9 % H e a l t h C a r e Sq u a r e I n c A 0 . 0 0 % - 4 0 . 8 % N / A I n f o r m a t i o n T e c h n o l o g y M i r at i T h e r a p e u t i c s I n c 0 . 0 0 % - 74 . 5 % - 8 2 . 7 % H e a l t h C a r e CV R E n e r g y I n c 0 . 0 0 % - 3 9 . 1 % - 5 5 . 9 % E n e r g y T r a n s En t e r i x I n c 0 . 0 1 % - 7 1 . 3 % - 5 9 . 3 % H e a l t h C a r e Fo s s i l G r o u p I n c 0 . 0 0 % - 3 5 . 8 % - 5 8 . 9 % C o n s u m e r D i s c r e t io n a r y L i p o c i n e I n c 0 . 0 0 % - 7 0 . 0 % - 6 4 . 6 % H e a l t h C a r e Ve r i F o n e S y s t e m s I n c 0 . 0 1 % - 3 4 . 3 % - 4 5 . 4 % I n f o r m a t i o n Te c h n o l o g y C h i a s m a I n c 0 . 00 % - 6 8 . 4 % N / A H e a l t h C a r e Pa g e 5 So u r c e : M S C I G l o b a l I n d e x M o n i t o r ( R e t u r n s a r e N e t )  Si m i l a r t o d o m e s t i c e q u i t y m a r k e t s , t h e 2 nd qu a r t e r w a s v o l a t i l e f o r in t e r n a t i o n a l s t o c k s a s b r o a d d e v e l o p e d m a r k e t i n d i c e s s t r u g g l e d t h r o u g h o u t th e q u a r t e r . C u r r e n c y i m p a c t o n r e t u r n s w a s m i x e d d u r i n g t h e q u a r t e r w i t h th e E M L a t i n A m e r i c a I n d e x b e n e f i t i n g f r o m a w e a k e n i n g U S D , a n d t h e Eu r o p e a n d M i d d l e E a s t I n d e x s u f f e r i n g f r o m U S D s t r e n g t h . F o r t h e 1 - y e a r pe r i o d , r e t u r n s f o r d e v e l o p e d m a r k e t s w e r e n e g a t i v e i n b o t h U S D a n d l o c a l cu r r e n c y . W h i l e t h e q u a r t e r b e g a n p o s i t i v e l y a s m a r k e t s p u s h e d h i g h e r o n th e b a c k o f b e t t e r t h a n e x p e c t e d e c o n o m i c d a t a a n d r i s i n g c o m m o d i t y p r i c e s , th e s e c o n d h a l f o f t h e q u a r t e r s a w i n t e r n a t i o n a l m a r k e t s s w o o n . M u c h o f t h i s wa s d u e t o u n c e r t a i n t y l e a d i n g u p t o t h e U . K . ’ s J u n e 2 3 rd re f e r e n d u m t o re m a i n i n o r m o v e t o l e a v e t h e E U . B r i t i s h v o t e r s s u r p r i s e d i n v e s t o r s b y vo t i n g t o d i s c o n t i n u e m e m b e r s h i p i n t h e e c o n o m i c b l o c . W h i l e t h e t e r m s a n d ag g r e g a t e i m p a c t o f “ B r e x i t ” w i l l r e m a i n u n k n o w n f o r s o m e t i m e , t h e r e a c t i o n to t h e v o t e w a s i m m e d i a t e . T h e p o u n d s t e r l i n g f e l l s h a r p l y ( - 1 2 % ) , S t a n d a r d & P o o r ’ s d o w n g r a d e d t h e U . K . ’ s A A A c r e d i t r a t i n g , a n d U . K . P r i m e M i n i s t e r Da v i d C a m e r o n r e s i g n e d . W h i l e U . K . e q u i t y m a r k e t s i n i t i a l l y s u f f e r e d s h a r p lo s s e s , m a r k e t s r e c o v e r e d q u i c k l y a s i n v e s t o r s w e i g h t e d t h e b e n e f i t s o f a we a k e n e d p o u n d o n t h e c o u n t r y ’ s l a r g e l y f o r e i g n e a r n i n g s b a s e .  Th e U . K . ’ s d e c i s i o n t o l e a v e t h e E U c a s t a s h a d o w o v e r E u r o p e a n e q u i t i e s fo r t h e q u a r t e r d e s p i t e t h e r e g i o n ’ s g e n e r a l l y p o s i t i v e e c o n o m i c d a t a . W h i l e th e E u r o p e a n C e n t r a l B a n k ( E C B ) h a s s i g n a l e d i t s i n t e n t f o r c o n t i n u e d su p p o r t , t h e E U f a c e s c o n c e r n s s u r r o u n d i n g “ B r e x i t ’ s ” e f f e c t o n f u t u r e gr o w t h , a s w e l l a s a p o l i t i c a l c o n t a g i o n t h a t c o u l d l e a d o t h e r m e m b e r s t o le a v e t h e e c o n o m i c u n i o n . J a p a n e s e e q u i t i e s f e l l s h a r p l y t h r o u g h t h e q u a r t e r as t h e B a n k o f J a p a n ( B o J ) b u c k e d m a r k e t e x p e c t a t i o n s w h e n t h e y d i d n o t an n o u n c e a n e x t e n s i o n t o i t s n e g a t i v e i n t e r e s t r a t e p o l i c y o r a s s e t p u r c h a s e pr o g r a m . T h e s u b s e q u e n t “ B r e x i t ” d e c i s i o n l e d t o a s h a r p a p p r e c i a t i o n i n t h e ye n , r a i s i n g a d d i t i o n a l c o n c e r n s a r o u n d f u t u r e e a r n i n g s g r o w t h p o t e n t i a l f o r Ja p a n e s e e q u i t i e s .  Br o a d e m e r g i n g m a r k e t i n d i c e s w e r e m o d e s t l y p o s i t i v e t h r o u g h o u t t h e qu a r t e r , o u t p e r f o r m i n g d e v e l o p e d m a r k e t s . L a t i n A m e r i c a w a s t h e b e s t pe r f o r m i n g r e g i o n o n b o t h a U S D a n d l o c a l c u r r e n c y b a s i s a s t h e r e g i o n be n e f i t t e d f r o m p o l i t i c a l t a i l w i n d s i n B r a z i l a n d r i s i n g c o m m o d i t y p r i c e s . Ru s s i a , I n d i a , a n d t h e P h i l i p p i n e s w e r e a l s o n o t a b l e p o s i t i v e p e r f o r m e r s . Em e r g i n g E u r o p e a n c o u n t r i e s w e r e l a g g a r d s r e l a t i v e t o e m e r g i n g p e e r s i n As i a a n d L a t i n A m e r i c a . P e r f o r m a n c e f o r t h e M S C I E m e r g i n g M a r k e t s I n d e x (n e t ) r e m a i n s n e g a t i v e i n b o t h l o c a l ( - 7 . 7 % ) a n d U S D ( - 1 2 . 1 % ) t e r m s o v e r th e t r a i l i n g 1 - y e a r p e r i o d . The Market Environment In t e r n a t i o n a l a n d R e g i o n a l M a r k e t In d e x P e r f o r m a n c e ( C o u n t r y C o u n t ) As of June 30, 2016 2.1%1.0% -1 . 7 % 0.7% -4 . 3 % 1.2% -0 . 7 % -0 . 4 % -0 . 1 % 5.3%0.3% -1 . 3 % 0.7%0.9% -2 . 7 % -1 . 5 % -1 . 1 % -0 . 6 % -6 . 0 % - 4 . 0 % - 2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 6 . 0 % EM L a t i n A m e r ( 5 ) EM A s i a ( 8 ) EM E M E A ( 1 0 ) Em e r g i n g M k t ( 2 3 ) Pa c i f i c ( 5 ) Eu r o p e & M E ( 1 6 ) EA F E ( 2 1 ) WO R L D x U S ( 2 2 ) AC W o r l d x U S ( 4 5 ) Qu a r t e r P e r f o r m a n c e USD Local Currency -0.2% -9 . 8 % -3.7%-7.7% -1 7 . 9 % -5.9% -1 0 . 2 % -9 . 6 % -9 . 2 % -7.6% -1 2 . 2 % -1 4 . 2 % -1 2 . 1 % -8.2% -1 1 . 2 % -1 0 . 2 % -9 . 8 % -1 0 . 2 % -2 0 . 0 % - 1 5 . 0 % - 1 0 . 0 % - 5 . 0 % 0 . 0 % EM L a t i n A m e r ( 5 ) EM A s i a ( 8 ) EM E M E A ( 1 0 ) Em e r g i n g M k t ( 2 3 ) Pa c i f i c ( 5 ) Eu r o p e & M E ( 1 6 ) EA F E ( 2 1 ) WO R L D x U S ( 2 2 ) AC W o r l d x U S ( 4 5 ) 1- Y e a r P e r f o r m a n c e USD Local Currency Pa g e 6 The Market Environment U. S . D o l l a r I n t e r n a t i o n a l I n d e x A t t r i b u t i o n & C o u n t r y D e t a i l As of June 30, 2016 So u r c e : M S C I G l o b a l I n d e x M o n i t o r ( R e t u r n s a r e N e t i n U S D ) MS C I - E A F E M S C I - A C W I x U S Q u a r t e r 1 - Y e a r Co u n t r y W e i g h t W e i g h t R e t u r n R e t u r n Ja p a n 2 3 . 3 % 1 6 . 4 % 1 . 0 % - 8 . 9 % Un i t e d K i n g d o m 1 9 . 6 % 1 3 . 8 % - 0 . 7 % - 1 2 . 1 % Fr a n c e 9 . 6 % 6 . 8 % - 4 . 3 % - 8 . 9 % Sw i t z e r l a n d 9 . 3 % 6 . 6 % 2 . 0 % - 8 . 5 % Ge r m a n y 8 . 7 % 6 . 1 % - 5 . 6 % - 1 1 . 6 % Au s t r a l i a 7 . 3 % 5 . 1 % 0 . 5 % - 4 . 5 % Ho n g K o n g 3 . 3 % 2 . 3 % 0 . 9 % - 1 0 . 8 % Ne t h e r l a n d s 3 . 2 % 2 . 2 % - 5 . 1 % - 7 . 8 % Sp a i n 2 . 9 % 2 . 1 % - 7 . 7 % - 2 3 . 3 % Sw e d e n 2 . 8 % 2 . 0 % - 5 . 4 % - 1 2 . 2 % De n m a r k 2 . 0 % 1 . 4 % - 0 . 6 % 2 . 5 % It a l y 2 . 0 % 1 . 4 % - 1 0 . 5 % - 2 6 . 1 % Be l g i u m 1 . 5 % 1 . 1 % 2 . 3 % 4 . 5 % Si n g a p o r e 1 . 4 % 1 . 0 % 0 . 4 % - 1 1 . 5 % Fi n l a n d 1 . 0 % 0 . 7 % - 2 . 1 % - 3 . 9 % Is r a e l 0 . 8 % 0 . 6 % - 3 . 8 % - 1 1 . 1 % No r w a y 0 . 6 % 0 . 5 % 2 . 4 % - 1 6 . 2 % Ir e l a n d 0 . 5 % 0 . 3 % - 9 . 9 % - 1 0 . 5 % Ne w Z e a l a n d 0 . 2 % 0 . 1 % 5 . 9 % 2 9 . 7 % Au s t r i a 0 . 2 % 0 . 1 % - 1 0 . 0 % - 1 2 . 9 % Po r t u g a l 0 . 2 % 0 . 1 % - 2 . 8 % - 7 . 5 % To t a l E A F E C o u n t r i e s 1 0 0 . 0 % 7 0 . 6 % - 1 . 5 % - 1 0 . 2 % Ca n a d a 6 . 8 % 3 . 4 % - 6 . 3 % To t a l D e v e l o p e d C o u n t r i e s 7 7 . 4 % - 1 . 1 % - 9 . 8 % Ch i n a 5 . 8 % 0 . 1 % - 2 3 . 4 % Ko r e a 3 . 3 % - 1 . 2 % - 3 . 5 % Ta i w a n 2 . 7 % 0 . 7 % - 8 . 8 % In d i a 1 . 9 % 3 . 7 % - 6 . 5 % So u t h A f r i c a 1 . 7 % 1 . 6 % - 1 5 . 9 % Br a z i l 1 . 6 % 1 3 . 9 % - 6 . 0 % Me x i c o 0 . 9 % - 7 . 0 % - 1 2 . 2 % Ru s s i a 0 . 9 % 4 . 1 % - 1 . 6 % Ma l a y s i a 0 . 7 % - 5 . 9 % - 6 . 0 % In d o n e s i a 0 . 6 % 4 . 1 % 6 . 0 % Th a i l a n d 0 . 5 % 2 . 8 % - 7 . 1 % Ph i l i p p i n e s 0 . 4 % 5 . 8 % 1 . 0 % Tu r k e y 0 . 3 % - 7 . 9 % - 1 0 . 1 % Ch i l e 0 . 3 % 1 . 9 % - 1 . 7 % Po l a n d 0 . 3 % - 1 7 . 5 % - 2 7 . 0 % Qa t a r 0 . 2 % - 4 . 9 % - 1 7 . 2 % Un i t e d A r a b E m i r a t es 0 . 2 % 0 . 1 % - 1 4 . 9 % Co l o m b i a 0 . 1 % 2 . 9 % - 1 2 . 4 % Pe r u 0 . 1 % 1 8 . 2 % 8 . 3 % Gr e e c e 0 . 1 % - 1 4 . 0 % - 6 0 . 8 % Hu n g a r y 0 . 1 % - 4 . 7 % 2 0 . 5 % Cz e c h R e p u b l i c 0 . 0 % - 6 . 1 % - 1 8 . 3 % Eg y p t 0 . 0 % 0 . 9 % - 2 3 . 8 % To t a l E m e r g i n g C o u n t r i e s 2 2 . 6 % 0 . 7 % - 1 2 . 1 % To t a l A C W I x U S C o u n t r i e s 1 0 0 . 0 % - 0 . 6 % - 1 0 . 2 % MS C I - E A F E S e c t o r W e i g h t Q u ar t e r R e t u r n 1 - Y e a r R e t u r n Co n s u m e r D i s c r e t i o n a r y 1 2 . 1 % - 8 . 4 % - 1 7 . 7 % Co n s u m e r S t a p l es 1 3 . 3 % 2 . 9 % 1 0 . 1 % En e r g y 5 . 2 % 1 1 . 3 % - 2 . 4 % Fi n a n c i a l s 2 2 . 3 % - 6 . 6 % - 2 3 . 2 % He a l t h C a r e 1 2 . 4 % 4 . 7 % - 2 . 2 % In d u s t r i a l s 1 3 . 3 % - 1 . 5 % - 5 . 4 % In f o r m a t i o n T e c h n o l o g y 5 . 4 % - 2 . 7 % - 8 . 0 % Ma t e r i a l s 6 . 9 % 1 . 2 % - 1 5 . 7 % Te l e c o m m u n i c a t i o n S e r v i c e s 5 . 2 % - 0 . 3 % - 3 . 7 % Ut i l i t i e s 3 . 9 % 1 . 6 % - 0 . 2 % To t a l 1 0 0 . 0 % - 1 . 5 % - 1 0 . 2 % MS C I - A C W I x U S S e c t o r W e i g h t Qu a r t e r R e t u r n 1 - Y e a r R e t u r n Co n s u m e r D i s c r e t i o n a r y 1 1 . 3 % - 6 . 9 % - 1 5 . 9 % Co n s u m e r S t a p l es 1 1 . 6 % 2 . 8 % 7 . 5 % En e r g y 6 . 9 % 8 . 1 % - 5 . 7 % Fi n a n c i a l s 2 4 . 4 % - 4 . 3 % - 1 9 . 9 % He a l t h C a r e 9 . 4 % 4 . 3 % - 6 . 5 % In d u s t r i a l s 1 1 . 3 % - 1 . 8 % - 7 . 2 % In f o r m a t i o n T e c h n o l o g y 9 . 0 % 0 . 1 % - 5 . 3 % Ma t e r i a l s 7 . 1 % 3 . 1 % - 1 2 . 1 % Te l e c o m m u n i c a t i o n S e r v i c e s 5 . 3 % - 0 . 2 % - 6 . 9 % Ut i l i t i e s 3 . 6 % 1 . 5 % - 2 . 0 % To t a l 1 0 0 . 0 % - 0 . 6 % - 1 0 . 2 % MS C I - E m e r g i n g M k t S e c t o r W e i gh t Q u a r t e r R e t u r n 1 - Y e a r R e t u r n Co n s u m e r D i s c r e t i o n a r y 1 0 . 5 % - 1 . 4 % - 1 0 . 5 % Co n s u m e r S t a p l e s 8 . 5 % 4 . 2 % - 3 . 6 % En e r g y 7 . 5 % 1 . 9 % - 1 2 . 7 % Fi n a n c i a l s 2 6 . 1 % 0 . 3 % - 1 7 . 8 % He a l t h C a r e 2 . 7 % 0 . 4 % - 7 . 5 % In d u s t r i a l s 6 . 2 % - 3 . 3 % - 1 9 . 0 % In f o r m a t i o n T e c h n o l o g y 2 2 . 5 % 2 . 5 % - 4 . 0 % Ma t e r i a l s 6 . 3 % - 0 . 8 % - 9 . 5 % Te l e c o m m u n i c a t i o n S e r v i c e s 6 . 6 % - 0 . 1 % - 1 5 . 6 % Ut i l i t i e s 3 . 2 % 0 . 5 % - 1 0 . 0 % To t a l 1 0 0 . 0 % 0 . 7 % - 1 2 . 1 % Pa g e 7 So u r c e : B a r c l a y s C a p i t a l L i v e The Market Environment Do m e s t i c B o n d S e c t o r & B r o a d / G l o b a l Bo n d M a r k e t P e r f o r m a n c e ( D u r a t i o n ) As of June 30, 2016  De s p i t e b e i n g i n v e s t o r s ’ l e a s t f a v o r i t e a s s e t c l a s s f o r s o m e t i m e , f i x e d in c o m e i n d i c e s c o n t i n u e d t h e i r s t r o n g 2 0 1 6 p e r f o r m a n c e t h r o u g h t h e 2 nd qu a r t e r o f t h e y e a r . E a r l y q u a r t e r h e a d w i n d s t r i g g e r e d b y h a w k i s h co m m e n t s f r o m F e d e r a l R e s e r v e C h a i r J a n e t Y e l l e n i m p l y i n g a s u m m e r in t e r e s t r a t e h i k e d i s s i p a t e d a s w e a k e r e c o n o m i c d a t a c r e a t e d d o u b t s t h a t th e e c o n o m y w a s r o b u s t e n o u g h t o w a r r a n t f u r t h e r m o n e t a r y p o l i c y ti g h t e n i n g . E x p e c t a t i o n s f o r a n e a r - t e r m i n c r e a s e o f t h e F e d F u n d s R a t e sh r a n k f u r t h e r a f t e r t h e U . K . ’ s v o t e t o l e a v e t h e E U . T h i s n e w s c a u s e d a sw i f t f l i g h t t o q u a l i t y , p u s h i n g i n t e r e s t r a t e s l o w e r t h r o u g h t h e s e c o n d h a l f of t h e q u a r t e r . W h i l e n e a r - t e r m r a t e s h ad l i t t l e r o o m t o m o v e l o w e r , l o n g - te r m r a t e s f e l l t o n e a r h i s t o r i c l o w s . T h i s c u r v e f l a t t e n i n g h e l p e d l o n g e r du r a t i o n i n d i c e s s u c h a s t h e B a r c l a y s U . S . C o r p o r a t e I n v e s t m e n t G r a d e In d e x a n d t h e B a r c l a y s G l o b a l A g g r e g a t e e x U . S . I n d e x t o o u t p e r f o r m , re t u r n i n g 3 . 6 % a n d 3 . 4 % r e s p e c t i v e l y . F i x e d i n c o m e p e r f o r m a n c e f o r t h e 1- y e a r p e r i o d w a s a l s o p o s i t i v e a c r o s s t h e c o u n t r y , c r e d i t , a n d s e c t o r sp e c t r u m s w i t h i n t e r n a t i o n a l b o n d i n d i c e s , s u c h a s t h e B a r c l a y s G l o b a l Ag g r e g a t e e x U . S . ( 1 1 . 2 % ) a n d t h e B a r c l a y s M u l t i v e r s e ( 8 . 6 % ) , g e n e r a t i n g th e h i g h e s t r e t u r n s  U. S . i n v e s t m e n t g r a d e b o n d i n d i c e s p o s t e d g a i n s f o r t h e q u a r t e r w i t h t h e br o a d m a r k e t B a r c l a y s A g g r e g a t e I n d e x p o s t i n g a r e t u r n o f 2 . 2 % . H i g h e r du r a t i o n i n d e x s e c t o r s w i t h i n t h e A g g r e g a t e o u t p e r f o r m e d l o w e r d u r a t i o n se c t o r s w i t h i n v e s t m e n t g r a d e c o r p o r a t e s ( 3 . 6 % ) a n d T r e a s u r y s e c u r i t i e s (2 . 1 % ) p o s t i n g t h e l a r g e s t g a i n s . H u r t b y i t s r e l a t i v e l y l o w d u r a t i o n , t h e Ba r c l a y s U . S . M o r t g a g e I n d e x p e r f o r m e d t h e w o r s t f o r t h e s e c o n d q u a r t e r in a r o w , r e t u r n i n g 1 . 1 % . O v e r t h e 1 - y e a r p e r i o d , t h e A g g r e g a t e h a s re t u r n e d a n e x p e c t a t i o n d e f y i n g 6 . 0 % . S i m i l a r t o t h e q u a r t e r l y r e s u l t s , in v e s t m e n t g r a d e c o r p o r a t e s a n d T r e a s u r i e s o u t p e r f o r m e d m o r t g a g e s f o r th e p e r i o d .  Lo w e r c r e d i t q u a l i t y i s s u e s o u t p e r f o r m e d h i g h e r q u a l i t y s e c u r i t i e s d u r i n g th e 2 nd qu a r t e r . B a a r a t e d s e c u r i t i e s r e t u r n e d 4 . 3 % v e r s u s a r e t u r n o f 1. 7 % f o r A A A i s s u e s d u e t o h i g h e r a v e r a g e d u r a t i o n s a n d t h e c o m p r e s s i o n of i n t e r e s t r a t e c r e d i t s p r e a d s t h r o u g h o u t t h e q u a r t e r . D r i v e n b y t h i s sp r e a d c o m p r e s s i o n , h i g h y i e l d b o n d s w e r e t h e b e s t p e r f o r m e r s w i t h t h e Ba r c l a y s U . S . H i g h Y i e l d I n d e x r e t u r n i n g 5 . 5 % . D e s p i t e i t s s t r o n g s t a r t t o 20 1 6 , t h e B a r c l a y s U . S . H i g h Y i e l d I n d e x i s o n l y m a r g i n a l l y p o s i t i v e o v e r th e l a s t 1 2 m o n t h s w i t h a r e t u r n o f 1 . 6 % . 3.0%3.4% 1. 4 % 2. 2 % 1. 7 % 3.6% 1. 1 % 2. 1 % 5.5%4.3%3.1% 2. 6 % 1. 7 % 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % Mu l t i v e r s e ( 6 . 7 ) Gl o b a l A g g x U S ( 8 . 0 ) In t e r m e d i a t e A g g ( 3 . 6 ) Ag g r e g a t e ( 5 . 5 ) U. S . T I P S ( 5 . 3 ) U. S . C o r p o r a t e I G ( 7 . 5 ) U. S . M o r t g a g e ( 2 . 5 ) U. S . T r e a s u r y ( 6 . 4 ) U. S . H i g h Y i e l d ( 4 . 3 ) Ba a ( 7 . 6 ) A ( 7 . 6 ) AA ( 6 . 4 ) AA A ( 4 . 7 ) Qu a r t e r P e r f o r m a n c e 8.6%11.2% 4. 4 % 6.0% 4. 4 % 7.9% 4. 3 % 6.2% 1. 6 % 6.9%8.6%7.1% 5. 4 % 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 1 2 . 0 % Mu l t i v e r s e ( 6 . 7 ) Gl o b a l A g g x U S ( 8 . 0 ) In t e r m e d i a t e A g g ( 3 . 6 ) Ag g r e g a t e ( 5 . 5 ) U. S . T I P S ( 5 . 3 ) U. S . C o r p o r a t e I G ( 7 . 5 ) U. S . M o r t g a g e ( 2 . 5 ) U. S . T r e a s u r y ( 6 . 4 ) U. S . H i g h Y i e l d ( 4 . 3 ) Ba a ( 7 . 6 ) A ( 7 . 6 ) AA ( 6 . 4 ) AA A ( 4 . 7 ) 1- Y e a r P e r f o r m a n c e Pa g e 8 So u r c e : U S D e p a r t m e n t o f T r e a s u r y , F R E D ( F e d e r a l R e s e r v e o f S t . L o u i s ) The Market Environment Ma r k e t R a t e & Y i e l d C u r v e C o m p a r i s o n As of June 30, 2016  U. S . T I P S f i n i s h e d t h e 2 nd qu a r t e r w i t h a 1 . 7 % r e t u r n . T h e r e l a t i v e l y s t r o n g re t u r n c a n b e a t t r i b u t e d t o t h e l o n g e r e n d o f t h e T I P S y i e l d c u r v e s h i f t i n g lo w e r i n g d u r i n g t h e p e r i o d a s h e a d l i n e C P I ( 1 . 1 % ) r e m a i n s l a r g e l y i n ch e c k . T h e T I P S r e t u r n f o r t h e 1 - y e a r p e r i o d i s a s o l i d 4 . 4 % .  In U S D t e r m s , i n t e r n a t i o n a l f i x e d i n c o m e i n d i c e s p o s t e d t h e l a r g e s t g a i n s fo r b o t h t h e q u a r t e r a n d 1 - y e a r p e r i o d s . D e s p i t e t h e r e l a t i v e l y l o w i n t e r e s t ra t e s i n i n t e r n a t i o n a l m a r k e t s , w i t h s e v e r a l g o v e r n m e n t i s s u e s h a v i n g ne g a t i v e y i e l d s , t h e B a r c l a y s G l o b a l A g g r e g a t e e x U . S . r e t u r n e d 3 . 4 % f o r th e q u a r t e r a s t h e i n d e x b e n e f i t t e d f r o m i t s h i g h e r a v e r a g e d u r a t i o n a n d mi x e d c u r r e n c y i m p a c t . T h e i n d e x ’ s 1 1 . 2 % r e t u r n o v e r t h e 1 - y e a r p e r i o d al s o o u t p a c e d d o m e s t i c b o n d r e t u r n s .  Mu c h o f t h e i n d e x p e r f o r m a n c e d e t a i l e d i n t h e b a r g r a p h s o n t h e p r e v i o u s pa g e i s v i s i b l e o n a t i m e s e r i e s b a s i s b y r e v i e w i n g t h e l i n e g r a p h s t o t h e ri g h t . T h e ‘ 1 - Y e a r T r a i l i n g M a r k e t R a t es ’ c h a r t i l l u s t r a t e s t h a t t h e 1 0 - y e a r Tr e a s u r y y i e l d ( g r e e n l i n e ) f e l l o v e r t h e q u a r t e r a n d i s n o w a t a 1 2 - m o n t h lo w . T h e b l u e l i n e i l l u s t r a t e s c h a n g e s i n t h e B A A O A S ( O p t i o n A d j u s t e d Sp r e a d ) , w h i c h q u a n t i f i e s t h e a d d i t i o n a l y i e l d p r e m i u m t h a t i n v e s t o r s re q u i r e t o p u r c h a s e a n d h o l d n o n - T r e a s u r y i s s u e s . W h e n c r e d i t s p r e a d s wi d e n ( t i g h t e n ) , i t i s e q u i v a l e n t t o i n t e r e s t r a t e i n c r e a s e s ( d e c r e a s e s ) o n co r p o r a t e b o n d r e t u r n s . A f t e r f a l l i n g b e l o w 2 . 0 % e a r l y i n 2 0 1 5 , t h i s s p r e a d ro s e t h r o u g h o u t t h e r e m a i n d e r o f t h e c a l e n d a r y e a r . W h i l e t h e r e w a s up s i d e m o m e n t u m i n c r e d i t s p r e a d s e a r l y i n 2 0 1 6 , t h e y h a v e n a r r o w e d b y c l o s e t o 1 % s i n c e t h e i r h i g h o n F e b r u a r y 1 1 th . D e s p i t e a n u p t i c k f r o m “B r e x i t ” d u r i n g J u n e , t h i s s p r e a d c o m p r e s s i o n h a s b e n e f i t e d c o r p o r a t e bo n d r e t u r n s . T h e l o w e r g r a p h p r o v i d e s a s n a p s h o t o f t h e U . S . T r e a s u r y yi e l d c u r v e a t e a c h o f t h e l a s t f o u r c a l e n d a r q u a r t e r s . T r e a s u r y i s s u e s gr e a t e r t h a n t w o y e a r s e n d e d t h e 2 nd qu a r t e r a t t h e i r l o w e s t l e v e l s i n t h e pa s t 1 2 - m o n t h s w h i l e s h o r t - t e r m r a t e s a r e a t t h e h i g h e n d o f t h e i r 1 2 - m o n t h ra n g e .  Th e F e d h a s s t a t e d f u t u r e r a t e i n c r e a s e s w o u l d b e i m p l e m e n t e d a t a me a s u r e d p a c e a n d w i t h a n o n g o i n g a s s e s s m e n t o f c u r r e n t e c o n o m i c da t a . D e s p i t e t h i s d o m e s t i c p o l i c y a s s e r t i o n , g e o p o l i t i c a l e v e n t s a n d n o n - U. S . s t i m u l u s p r o g r a m s a r e l i k e l y t o k e e p d e m a n d f o r U . S . T r e a s u r y i s s u e s el e v a t e d a n d e x e r t d o w n w a r d p r e s s u r e o n h o w h i g h d o m e s t i c i n t e r e s t ra t e s w i l l r i s e i n t h e s h o r t - t e r m . 0. 0 0 0. 5 0 1. 0 0 1. 5 0 2. 0 0 2. 5 0 3. 0 0 3. 5 0 1 m o 3 m o 6 m o 1 y r 2 y r 3 y r 5 y r 7 y r 1 0 y r 2 0 y r 3 0 y r Tr e a s u r y Y i e l d C u r v e 9/ 3 0 / 2 0 1 5 12 / 3 1 / 2 0 1 5 3/ 3 1 / 2 0 1 6 6/30/2016 0. 0 0 0. 5 0 1. 0 0 1. 5 0 2. 0 0 2. 5 0 3. 0 0 3. 5 0 Ju n - 1 5 J u l - 1 5 A u g - 1 5 S e p - 1 5 O c t - 1 5 N o v - 1 5 D e c - 1 5 J a n - 1 6 F e b - 1 6 M a r - 1 6 A p r - 1 6 M a y - 1 6 J u n - 1 6 1- Y e a r T r a i l i n g M a r k e t R a t e s Fe d F u n d s R a t e TE D S p r e a d 3-Month Libor BA A O A S 10 y r T r e a s u r y 10yr TIPS Pa g e 9 Yes No Th e t o t a l p l a n r e t u r n e q u a l e d o r e x c e e d e d t h e t o t a l p l a n b e n c h m ar k o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d . ● Th e t h r e e y e a r t o t a l p l a n r e t u r n r a n k s i n t h e t o p 4 0 % o f i t s p e er s . ● Th e t o t a l p l a n r e t u r n o f t h e f u n d o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d eq u a l e d o r e x c e e d e d 7 . 3 % ( a c t u a r i a l a s s u m p t i o n r a t e o f r e t u r n ) . ● Yes No Th e e q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e n c h m a r k o v e r t h e t r ai l i n g t h r e e y e a r p e r i o d . ● Th e e q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e n c h m a r k o v e r t h e t r ai l i n g f i v e y e a r p e r i o d . ● Th e a m o u n t i n v e s t e d i n a n y s i n g l e s e c u r i t y i s l e s s t h a n o r e q u a l t o 5 % o f t h e m a r k e t v a l u e o f t h e t o t a l e q u i t y p o r t f o l i o . ● Th e a m o u n t i n v e s t e d i n a n y s i n g l e i n d u s t r y i s l e s s t h a n o r e q u a l t o 2 0 % o f t h e m a r k e t v a l u e o f t h e t o t a l e q u i t y p o r t f o l i o . ●Yes No Th e f i x e d i n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e b e n c h m a r k o v e r th e t r a i l i n g t h r e e y e a r p e r i o d . ● Th e fi x e d i n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e B C A B i n d e x o v e r t h e t r a i l i n g f i v e y e a r p e r i o d . ● Th e a m o u n t i n v e s t e d i n a n y s i n g l e s e c u r i t y ( e x c l u d i n g U . S . G o v e rn m e n t a n d i t s a g e n c i e s ) i s l e s s t h a n o r e q u a l t o 5 % o f t h e m a r k e t v a l u e o f t h e t o t a l f i x e d i n c o m e p o r t f o l i o . ● Th e m i n i m u m q u a l i t y r a t i n g o f t h e d o m e s t i c b o n d i n v e s t m e n t s i s BB B f r o m S t a n d a r d & P o o r ' s o r B A A f r o m M o o d y ' s . ● Fi x e d I n c o m e C o m p l i a n c e : Pa l m B e a c h G a r d e n s P o l i c e P e n s i o n F u n d Compliance Checklist As of June 30, 2016 To t a l F u n d C o m p l i a n c e : Eq u i t y C o m p l i a n c e : Pa g e 1 0 Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Differences (%) Target Rebal. ($000) Total Fund Composite 79,185,946 100.0 100.0 0.0 - Highland Capital Balanced 25,581,299 32.3 33.5 -1.2 945,993 Rhumbline S&P 500 Equity 18,826,184 23.8 25.0 -1.2 970,302 Rhumbline S&P 400 Equity 8,811,232 11.1 10.0 1.1 -892,637 Rhumbline S&P 600 Equity 8,830,032 11.2 10.0 1.2 -911,437 Vanguard International Equity 7,287,862 9.2 10.0 -0.8 630,733 Oppenheimer Dreyfus 3,302,686 4.2 4.0 0.2 -135,248 American Realty 6,196,650 7.8 7.5 0.3 -257,704 R&D Cash 350,001 0.4 0.0 0.4 -350,001 Allocation Differences 0.0%3.0%6.0%9.0%10.0%-3.0 %-6.0 %-9.0 %-10.0 % R&D Cash American Realty Oppenheimer Dreyfus Vanguard International Equity Rhumbline S&P 600 Equity Rhumbline S&P 400 Equity Rhumbline S&P 500 Equity Highland Capital Balanced 0.4% 0.3% 0.2% -0.8 % 1.2% 1.1% -1.2 % -1.2 % Executive Summary Policy Target In Policy 0.0%20.0%40.0%60.0%80.0%100.0%120.0%-20.0 % R&D Cash (0.4%) American Realty (7.8%) Oppenheimer Dreyfus (4.2%) Vanguard International Equity (9.2%) Rhumbline S&P 600 Equity (11.2%) Rhumbline S&P 400 Equity (11.1%) Rhumbline S&P 500 Equity (23.8%) Highland Capital Balanced (32.3%) Asset Allocation Compliance Palm Beach Gardens Police Total Fund Composite As of June 30, 2016 Page 11 Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Differences (%) Target Rebal. ($000) Domestic Equity 43,933,162 55.5 55.0 0.5 -380,892 International Equity 7,287,862 9.2 10.0 -0.8 630,733 Domestic Fixed Income 17,076,165 21.6 23.5 -1.9 1,532,533 International Fixed Income 3,302,686 4.2 4.0 0.2 -135,248 Real Estate 6,196,650 7.8 7.5 0.3 -257,704 Cash Equivalent 1,389,421 1.8 0.0 1.8 -1,389,421 Total Fund 79,185,946 100.0 100.0 0.0 - Allocation Differences 0.0%3.0%6.0%9.0%10.0%-3.0 %-6.0 %-9.0 %-10.0 % Cash Equivalent Real Estate International Fixed Income Domestic Fixed Income International Equity Domestic Equity 1.8% 0.3% 0.2% -1.9 % -0.8 % 0.5% Executive Summary Policy Target In Policy 0.0%20.0%40.0%60.0%80.0%100.0%120.0%-20.0 % Cash Equivalent (1.8%) Real Estate (7.8%) International Fixed Income (4.2%) Domestic Fixed Income (21.6%) International Equity (9.2%) Domestic Equity (55.5%) R e c o m m e n d a t i o n Asset Allocation Compliance Palm Beach Gardens Police Total Fund Composite As of June 30, 2016 Page 12 Asset Allocation By Segment as of March 31, 2016 : $78,411,084 Asset Allocation By Segment as of June 30, 2016 : $79,185,946 Allocation Segments Market Value Allocation Domestic Equity 43,737,579 55.8¢ International Equity 7,259,997 9.3¢ Domestic Fixed Income 16,993,022 21.7¢ International Fixed Income 3,213,827 4.1¢ Real Estate 4,900,000 6.2¢ Cash Equivalent 2,306,659 2.9¢ Allocation Segments Market Value Allocation Domestic Equity 43,933,162 55.5¢ International Equity 7,287,862 9.2¢ Domestic Fixed Income 17,076,165 21.6¢ International Fixed Income 3,302,686 4.2¢ Real Estate 6,196,650 7.8¢ Cash Equivalent 1,389,421 1.8¢ Asset Allocation Summary Total Fund Composite As of June 30, 2016 NONE Page 13 Asset Allocation By Manager as of March 31, 2016 : $78,411,084 Asset Allocation By Manager as of June 30, 2016 : $79,185,946 Allocation Market Value Allocation Highland Capital Balanced 26,860,672 34.3¢ Rhumbline S&P 500 Equity 19,164,461 24.4¢ Rhumbline S&P 600 Equity 8,535,052 10.9¢ Rhumbline S&P 400 Equity 8,475,249 10.8¢ Vanguard International Equity 7,259,997 9.3¢ American Realty 4,900,000 6.2¢ Oppenheimer Dreyfus 3,215,653 4.1¢ R&D Cash 1 0.0¢ Allocation Market Value Allocation Highland Capital Balanced 25,581,299 32.3¢ Rhumbline S&P 500 Equity 18,826,184 23.8¢ Rhumbline S&P 600 Equity 8,830,032 11.2¢ Rhumbline S&P 400 Equity 8,811,232 11.1¢ Vanguard International Equity 7,287,862 9.2¢ American Realty 6,196,650 7.8¢ Oppenheimer Dreyfus 3,302,686 4.2¢ R&D Cash 350,001 0.4¢ Asset Allocation Summary Total Fund Composite As of June 30, 2016 NONE Page 14 Asset Allocation & Performance Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite 79,185,946 100.0 2.12 (32)7.62 (8)2.09 (15)8.45 (3)8.36 (3)7.67 (59)04/01/1992 Total Fund Policy Index 2.14 (31)7.91 (8)3.11 (6)8.19 (6)8.16 (5)8.46 (11) Difference -0.02 -0.29 -1.02 0.26 0.20 -0.79 All Public Plans-Total Fund Median 1.87 5.96 0.66 6.75 6.62 7.74 Total Equity Composite 51,221,024 64.7 2.13 8.59 -0.05 10.22 10.43 4.78 07/01/2000 Total Equity Policy Index 2.01 8.93 0.66 10.12 10.27 4.56 Difference 0.12 -0.34 -0.71 0.10 0.16 0.22 Total Domestic Equity Rhumbline S&P 500 Equity 18,826,184 23.8 2.41 (41)11.10 (23)3.91 (23)11.60 (41)12.06 (36)4.47 (76)07/01/2000 S&P 500 Index 2.46 (39)11.15 (21)3.99 (22)11.66 (39)12.10 (34)4.33 (81) Difference -0.05 -0.05 -0.08 -0.06 -0.04 0.14 IM U.S. Large Cap Equity (SA+CF) Median 1.92 8.40 0.99 11.13 11.49 5.64 Rhumbline S&P 400 Equity 8,811,232 11.1 3.96 (20)10.64 (22)1.31 (25)10.51 (46)10.59 (41)9.58 (55)01/01/2004 S&P MidCap 400 Index 3.99 (19)10.74 (20)1.33 (25)10.53 (45)10.55 (44)9.49 (61) Difference -0.03 -0.10 -0.02 -0.02 0.04 0.09 IM U.S. Mid Cap Equity (SA+CF) Median 2.40 6.06 -2.96 10.18 10.24 9.65 Rhumbline S&P 600 Equity 8,830,032 11.2 3.46 (45)10.09 (21)-0.06 (20)10.24 (28)11.19 (24)9.34 (39)01/01/2004 S&P SmallCap 600 3.48 (45)10.18 (19)-0.03 (20)10.23 (28)11.20 (23)9.27 (42) Difference -0.02 -0.09 -0.03 0.01 -0.01 0.07 IM U.S. Small Cap Equity (SA+CF) Median 3.19 6.05 -4.85 8.62 9.74 8.87 Highland Capital LCG 7,465,714 9.4 -0.43 (76)2.39 (82)-5.41 (87)10.42 (79)10.33 (73)6.60 (59)10/01/2007 Russell 1000 Growth Index 0.61 (50)8.78 (19)3.02 (20)13.07 (36)12.35 (29)7.42 (37) Difference -1.04 -6.39 -8.43 -2.65 -2.02 -0.82 IM U.S. Large Cap Growth Equity (SA+CF) Median 0.61 6.06 -0.57 12.28 11.39 6.97 International Equity Vanguard International Equity 7,287,862 9.2 0.38 (43)1.91 (63)-9.49 (60)3.97 (39)3.27 (42)2.98 (61)10/01/2006 MSCI EAFE Index -1.19 (62)0.52 (72)-9.72 (63)2.52 (57)2.15 (56)1.70 (86) Difference 1.57 1.39 0.23 1.45 1.12 1.28 IM International Equity (SA+CF) Median -0.28 3.59 -8.20 3.08 2.69 3.68 Asset Allocation & Performance Total Fund Composite (Gross) As of June 30, 2016 Page 15 Asset Allocation & Performance Total Fund Composite (Gross) As of June 30, 2016 Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fixed Income Composite 20,378,851 25.7 2.44 6.26 6.72 3.90 3.72 5.66 04/01/1994 Total Fixed Inc Policy Index 2.42 5.51 6.86 3.89 3.39 5.76 Difference 0.02 0.75 -0.14 0.01 0.33 -0.10 Domestic Fixed Income Highland Capital Fxed Income 17,076,165 21.6 2.41 (40)5.89 (7)7.17 (6)4.06 (82)3.92 (77)5.69 (97)04/01/1994 Barclays Aggregate Index 2.21 (69)4.71 (67)6.00 (62)4.06 (82)3.76 (89)5.83 (91) Difference 0.20 1.18 1.17 0.00 0.16 -0.14 IM U.S. Broad Market Core Fixed Income (SA+CF) Median 2.32 4.98 6.14 4.34 4.14 6.13 International Fixed Income Oppenheimer Dreyfus 3,302,686 4.2 2.71 (76)6.77 (80)0.68 (79)1.88 (57)1.34 (58)1.69 (62)10/01/2010 Citigroup Non-U.S. World Government Bond 4.04 (47)11.94 (30)13.85 (1)2.36 (52)0.31 (73)0.81 (75) Difference -1.33 -5.17 -13.17 -0.48 1.03 0.88 IM International Fixed Income All (MF) Median 3.88 9.59 5.44 2.46 2.15 2.75 Real Estate American Realty 6,196,650 7.8 1.25 (100)7.07 (96)10.70 (96)12.40 (83)N/A 12.15 (83)07/01/2012 NCREIF Property Index 2.03 (78)7.33 (91)10.64 (100)11.61 (88)11.52 (91)11.39 (88) Difference -0.78 -0.26 0.06 0.79 N/A 0.76 IM U.S. Private Real Estate (SA+CF) Median 2.54 8.26 12.64 13.52 13.37 13.44 R&D Cash 350,001 0.4 Page 16 Asset Allocation & Performance Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite 79,185,946 100.0 2.03 7.43 1.85 8.24 8.15 7.42 04/01/1992 Total Fund Policy Index 2.14 7.91 3.11 8.19 8.16 8.46 Difference -0.11 -0.48 -1.26 0.05 -0.01 -1.04 Total Equity Composite 51,221,024 64.7 2.13 8.59 -0.05 10.22 10.43 4.78 07/01/2000 Total Equity Policy Index 2.01 8.93 0.66 10.12 10.27 4.56 Difference 0.12 -0.34 -0.71 0.10 0.16 0.22 Total Domestic Equity Rhumbline S&P 500 Equity 18,826,184 23.8 2.41 11.07 3.87 11.54 11.97 4.34 07/01/2000 S&P 500 Index 2.46 11.15 3.99 11.66 12.10 4.33 Difference -0.05 -0.08 -0.12 -0.12 -0.13 0.01 Rhumbline S&P 400 Equity 8,811,232 11.1 3.96 10.61 1.25 10.47 10.57 9.57 01/01/2004 S&P MidCap 400 Index 3.99 10.74 1.33 10.53 10.55 9.49 Difference -0.03 -0.13 -0.08 -0.06 0.02 0.08 Rhumbline S&P 600 Equity 8,830,032 11.2 3.46 10.05 -0.12 10.20 11.17 9.33 01/01/2004 S&P SmallCap 600 3.48 10.18 -0.03 10.23 11.20 9.27 Difference -0.02 -0.13 -0.09 -0.03 -0.03 0.06 Highland Capital LCG Equity 7,465,714 9.4 -0.43 2.39 -5.41 10.42 10.33 6.60 10/01/2007 Russell 1000 Growth Index 0.61 8.78 3.02 13.07 12.35 7.42 Difference -1.04 -6.39 -8.43 -2.65 -2.02 -0.82 International Equity Vanguard International Equity 7,287,862 9.2 0.38 1.91 -9.49 3.97 3.27 2.98 10/01/2006 MSCI EAFE Index -1.19 0.52 -9.72 2.52 2.15 1.70 Difference 1.57 1.39 0.23 1.45 1.12 1.28 Total Fixed Income Composite 20,378,851 25.7 2.44 6.26 6.72 3.90 3.72 5.66 04/01/1994 Total Fixed Inc Policy Index 2.42 5.51 6.86 3.89 3.39 5.76 Difference 0.02 0.75 -0.14 0.01 0.33 -0.10 Asset Allocation & Performance Total Fund Composite (Net) As of June 30, 2016 Page 17 Asset Allocation & Performance Total Fund Composite (Net) As of June 30, 2016 Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Fixed Income Highland Capital Fxed Income 17,076,165 21.6 2.41 5.89 7.17 4.06 3.92 5.69 04/01/1994 Barclays Aggregate Index 2.21 4.71 6.00 4.06 3.76 5.83 Difference 0.20 1.18 1.17 0.00 0.16 -0.14 International Fixed Income Oppenheimer Dreyfus 3,302,686 4.2 2.71 6.77 0.68 1.88 1.34 1.69 10/01/2010 Citigroup Non-U.S. World Government Bond 4.04 11.94 13.85 2.36 0.31 0.81 Difference -1.33 -5.17 -13.17 -0.48 1.03 0.88 Real Estate American Realty 6,196,650 7.8 0.97 6.20 9.45 11.22 N/A 10.97 07/01/2012 NCREIF Property Index 2.03 7.33 10.64 11.61 11.52 11.39 Difference -1.06 -1.13 -1.19 -0.39 N/A -0.42 Page 18 Asset Allocation & Performance Allocation Market Value $ % Performance(%) Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Oct-2006 To Sep-2007 Oct-2005 To Sep-2006 Total Fund Composite 79,185,946 100.0 1.46 (11)10.95 (33)14.75 (16)18.89 (28)0.46 (44)10.42 (37)5.99 (9)-13.46 (57)12.22 (83)7.04 (82) Total Fund Policy Index 0.81 (19)10.35 (47)14.21 (22)19.60 (18)1.75 (18)10.81 (29)1.64 (50)-12.83 (49)13.68 (62)7.97 (61) Difference 0.65 0.60 0.54 -0.71 -1.29 -0.39 4.35 -0.63 -1.46 -0.93 All Public Plans-Total Fund Median -0.53 10.17 12.51 17.96 0.18 9.91 1.60 -12.93 14.05 8.43 Total Equity Composite 51,221,024 64.7 0.44 14.07 24.58 28.78 -2.47 12.49 -0.91 -23.22 17.99 9.60 Total Equity Policy Index -0.18 13.86 23.27 27.80 -0.50 11.44 -4.36 -21.04 17.05 9.27 Difference 0.62 0.21 1.31 0.98 -1.97 1.05 3.45 -2.18 0.94 0.33 Total Domestic Equity Rhumbline S&P 500 Equity 18,826,184 23.8 -0.63 (57)19.64 (39)19.30 (72)30.16 (39)1.18 (44)10.20 (49)-6.49 (60)-21.73 (59)16.63 (57)10.88 (43) S&P 500 Index -0.61 (57)19.73 (37)19.34 (71)30.20 (39)1.14 (45)10.16 (50)-6.91 (65)-21.98 (63)16.44 (61)10.79 (46) Difference -0.02 -0.09 -0.04 -0.04 0.04 0.04 0.42 0.25 0.19 0.09 IM U.S. Large Cap Equity (SA+CF) Median -0.37 18.79 21.15 29.19 0.72 10.10 -5.53 -20.83 17.08 10.40 Rhumbline S&P 400 Equity 8,811,232 11.1 1.45 (52)11.81 (67)27.55 (57)28.90 (35)-1.16 (55)17.78 (41)-2.78 (52)-16.54 (17)18.73 (60)6.60 (70) S&P MidCap 400 Index 1.40 (53)11.82 (67)27.68 (55)28.54 (39)-1.28 (57)17.78 (41)-3.11 (56)-16.68 (20)18.76 (59)6.56 (70) Difference 0.05 -0.01 -0.13 0.36 0.12 0.00 0.33 0.14 -0.03 0.04 IM U.S. Mid Cap Equity (SA+CF) Median 1.47 13.46 28.01 27.10 -0.76 16.67 -2.72 -20.87 20.68 8.19 Rhumbline S&P 600 Equity 8,830,032 11.2 3.90 (37)5.79 (55)31.40 (56)33.27 (36)0.21 (38)14.14 (58)-10.54 (76)-13.64 (22)15.16 (59)7.60 (56) S&P SmallCap 600 3.81 (37)5.74 (56)31.51 (54)33.35 (36)0.21 (38)14.22 (57)-10.61 (77)-13.83 (23)14.93 (60)7.16 (60) Difference 0.09 0.05 -0.11 -0.08 0.00 -0.08 0.07 0.19 0.23 0.44 IM U.S. Small Cap Equity (SA+CF) Median 2.41 6.23 32.05 31.55 -1.21 14.99 -5.30 -18.16 17.43 8.19 Highland Capital LCG 7,465,714 9.4 4.64 (34)16.29 (70)28.73 (8)27.51 (51)-6.48 (97)14.63 (22)15.31 (2)-30.80 (98)N/A N/A Russell 1000 Growth Index 3.17 (56)19.15 (39)19.27 (65)29.19 (38)3.78 (30)12.65 (36)-1.85 (37)-20.88 (54)19.35 (56)6.04 (59) Difference 1.47 -2.86 9.46 -1.68 -10.26 1.98 17.16 -9.92 N/A N/A IM U.S. Large Cap Growth Equity (SA+CF) Median 3.68 18.12 20.31 27.62 1.37 11.31 -3.03 -20.34 20.19 6.83 International Equity Vanguard International Equity 7,287,862 9.2 -8.53 (53)7.89 (29)23.72 (37)19.39 (32)-11.12 (62)9.09 (52)2.31 (73)-29.10 (41)27.48 (57)N/A MSCI EAFE Index -8.27 (52)4.70 (63)24.29 (33)14.33 (72)-8.94 (44)3.71 (80)3.80 (65)-30.13 (48)25.38 (67)19.65 (56) Difference -0.26 3.19 -0.57 5.06 -2.18 5.38 -1.49 1.03 2.10 N/A IM International Equity (SA+CF) Median -7.99 5.79 20.35 17.30 -9.61 9.60 6.90 -30.33 29.56 20.13 Asset Allocation & Performance Total Fund Composite (Gross) As of June 30, 2016 Page 19 Asset Allocation & Performance Total Fund Composite (Gross) As of June 30, 2016 Allocation Market Value $ % Performance(%) Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Oct-2006 To Sep-2007 Oct-2005 To Sep-2006 Total Fixed Income Composite 20,378,851 25.7 1.40 3.45 -2.57 6.28 5.20 8.28 11.96 1.23 4.97 3.56 Total Fixed Inc Policy Index 1.82 3.41 -2.11 4.98 5.18 7.78 11.18 3.84 5.62 3.51 Difference -0.42 0.04 -0.46 1.30 0.02 0.50 0.78 -2.61 -0.65 0.05 Domestic Fixed Income Highland Capital Fxed Income 17,076,165 21.6 2.22 (88)3.51 (94)-2.54 (99)6.07 (71)5.66 (26)8.09 (89)11.96 (58)1.23 (63)4.97 (70)3.56 (85) Barclays Aggregate Index 2.94 (59)3.96 (80)-1.68 (80)5.16 (91)5.26 (49)8.16 (87)10.56 (82)3.65 (32)5.14 (53)3.67 (76) Difference -0.72 -0.45 -0.86 0.91 0.40 -0.07 1.40 -2.42 -0.17 -0.11 IM U.S. Broad Market Core Fixed Income (SA+CF) Median 3.02 4.50 -1.24 6.60 5.25 9.24 12.28 2.54 5.15 3.86 International Fixed Income Oppenheimer Dreyfus 3,302,686 4.2 -4.81 (31)2.98 (69)-2.82 (41)7.90 (69)0.32 (41)N/A N/A N/A N/A N/A Citigroup Non-U.S. World Government Bond -7.01 (46)-0.99 (89)-5.63 (80)3.45 (91)4.13 (4)4.46 (88)16.04 (54)5.16 (1)9.53 (32)2.04 (70) Difference 2.20 3.97 2.81 4.45 -3.81 N/A N/A N/A N/A N/A IM International Fixed Income All (MF) Median -7.85 5.33 -3.56 14.24 -0.27 13.67 16.41 -3.81 8.61 5.14 Real Estate American Realty 6,196,650 7.8 14.05 (70)12.45 (72)12.30 (73)N/A N/A N/A N/A N/A N/A N/A NCREIF Property Index 13.48 (78)11.26 (91)11.00 (83)11.00 (75)16.10 (71)5.84 (50)-22.09 (10)5.27 (45)17.31 (67)17.62 (56) Difference 0.57 1.19 1.30 N/A N/A N/A N/A N/A N/A N/A IM U.S. Private Real Estate (SA+CF) Median 16.27 13.17 13.35 13.03 16.62 5.80 -34.32 4.88 18.73 18.27 R&D Cash 350,001 0.4 Page 20 Asset Allocation & Performance Allocation Market Value $ % Performance(%) Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Oct-2006 To Sep-2007 Oct-2005 To Sep-2006 Total Fund Composite 79,185,946 100.0 1.29 10.73 14.53 18.64 0.22 10.08 5.61 -13.73 11.90 6.70 Total Fund Policy Index 0.81 10.35 14.21 19.60 1.75 10.81 1.64 -12.83 13.68 7.97 Difference 0.48 0.38 0.32 -0.96 -1.53 -0.73 3.97 -0.90 -1.78 -1.27 Total Equity Composite 51,221,024 64.7 0.44 14.07 24.58 28.78 -2.47 12.49 -0.91 -23.22 17.99 9.60 Total Equity Policy Index -0.18 13.86 23.27 27.80 -0.50 11.44 -4.36 -21.04 17.05 9.27 Difference 0.62 0.21 1.31 0.98 -1.97 1.05 3.45 -2.18 0.94 0.33 Total Domestic Equity Rhumbline S&P 500 Equity 18,826,184 23.8 -0.66 19.55 19.18 29.99 1.04 10.02 -6.71 -21.87 16.47 10.72 S&P 500 Index -0.61 19.73 19.34 30.20 1.14 10.16 -6.91 -21.98 16.44 10.79 Difference -0.05 -0.18 -0.16 -0.21 -0.10 -0.14 0.20 0.11 0.03 -0.07 Rhumbline S&P 400 Equity 8,811,232 11.1 1.40 11.78 27.55 28.90 -1.16 17.78 -2.78 -16.54 18.73 6.60 S&P MidCap 400 Index 1.40 11.82 27.68 28.54 -1.28 17.78 -3.11 -16.68 18.76 6.56 Difference 0.00 -0.04 -0.13 0.36 0.12 0.00 0.33 0.14 -0.03 0.04 Rhumbline S&P 600 Equity 8,830,032 11.2 3.85 5.76 31.40 33.27 0.21 14.14 -10.54 -13.64 15.16 7.60 S&P SmallCap 600 3.81 5.74 31.51 33.35 0.21 14.22 -10.61 -13.83 14.93 7.16 Difference 0.04 0.02 -0.11 -0.08 0.00 -0.08 0.07 0.19 0.23 0.44 Highland Capital LCG 7,465,714 9.4 4.64 16.29 28.73 27.51 -6.48 14.63 15.31 -30.80 N/A N/A Russell 1000 Growth Index 3.17 19.15 19.27 29.19 3.78 12.65 -1.85 -20.88 19.35 6.04 Difference 1.47 -2.86 9.46 -1.68 -10.26 1.98 17.16 -9.92 N/A N/A International Equity Vanguard International Equity 7,287,862 9.2 -8.53 7.89 23.72 19.39 -11.12 9.09 2.31 -29.10 27.48 N/A MSCI EAFE Index -8.27 4.70 24.29 14.33 -8.94 3.71 3.80 -30.13 25.38 19.65 Difference -0.26 3.19 -0.57 5.06 -2.18 5.38 -1.49 1.03 2.10 N/A Total Fixed Income Composite 20,378,851 25.7 1.40 3.45 -2.57 6.28 5.20 8.28 11.96 1.23 4.97 3.56 Total Fixed Inc Policy Index 1.82 3.41 -2.11 4.98 5.18 7.78 11.18 3.84 5.62 3.51 Difference -0.42 0.04 -0.46 1.30 0.02 0.50 0.78 -2.61 -0.65 0.05 Asset Allocation & Performance Total Fund Composite (Net) As of June 30, 2016 Page 21 Asset Allocation & Performance Total Fund Composite (Net) As of June 30, 2016 Allocation Market Value $ % Performance(%) Oct-2014 To Sep-2015 Oct-2013 To Sep-2014 Oct-2012 To Sep-2013 Oct-2011 To Sep-2012 Oct-2010 To Sep-2011 Oct-2009 To Sep-2010 Oct-2008 To Sep-2009 Oct-2007 To Sep-2008 Oct-2006 To Sep-2007 Oct-2005 To Sep-2006 Domestic Fixed Income Highland Capital Fxed Income 17,076,165 21.6 2.22 3.51 -2.54 6.07 5.66 8.09 11.96 1.23 4.97 3.56 Barclays Aggregate Index 2.94 3.96 -1.68 5.16 5.26 8.16 10.56 3.65 5.14 3.67 Difference -0.72 -0.45 -0.86 0.91 0.40 -0.07 1.40 -2.42 -0.17 -0.11 International Fixed Income Oppenheimer Dreyfus 3,302,686 4.2 -4.81 2.98 -2.82 7.90 0.32 N/A N/A N/A N/A N/A Citigroup Non-U.S. World Government Bond -7.01 -0.99 -5.63 3.45 4.13 4.46 16.04 5.16 9.53 2.04 Difference 2.20 3.97 2.81 4.45 -3.81 N/A N/A N/A N/A N/A Real Estate American Realty 6,196,650 7.8 12.82 11.34 11.10 N/A N/A N/A N/A N/A N/A N/A NCREIF Property Index 13.48 11.26 11.00 11.00 16.10 5.84 -22.09 5.27 17.31 17.62 Difference -0.66 0.08 0.10 N/A N/A N/A N/A N/A N/A N/A Page 22 Historical Rolling Performance QTR 1 YR 3 YR 5 YR Inception 06/30/2016 2.12 2.09 8.45 8.36 7.67 03/31/2016 1.89 0.03 7.88 8.03 7.65 12/31/2015 3.42 1.00 9.66 8.53 7.65 09/30/2015 -5.13 1.46 8.91 9.06 7.58 06/30/2015 0.06 5.55 12.48 11.97 7.91 03/31/2015 2.88 9.19 11.63 10.75 8.00 12/31/2014 3.89 7.80 13.55 11.04 7.96 09/30/2014 -1.31 10.95 14.82 10.92 7.86 06/30/2014 3.52 18.38 11.51 13.73 8.02 03/31/2014 1.57 14.94 10.45 15.10 7.94 12/31/2013 6.92 21.12 11.41 13.81 7.96 09/30/2013 5.30 14.75 11.08 9.91 7.72 06/30/2013 0.51 13.90 12.11 7.06 7.56 03/31/2013 7.03 10.83 9.90 6.97 7.62 12/31/2012 1.30 12.13 8.93 4.48 7.37 09/30/2012 4.52 18.89 9.66 3.88 7.39 06/30/2012 -2.20 2.85 12.16 3.42 7.25 03/31/2012 8.29 5.76 16.62 4.58 7.46 12/31/2011 7.40 1.83 12.03 3.29 7.13 09/30/2011 -9.58 0.46 5.54 2.69 6.83 06/30/2011 0.57 20.27 6.29 5.50 7.49 03/31/2011 4.26 13.24 6.11 5.13 7.55 12/31/2010 5.96 13.22 2.92 4.93 7.42 09/30/2010 8.25 10.42 0.43 4.00 7.19 06/30/2010 -5.31 14.08 -1.48 2.78 6.83 03/31/2010 4.24 32.44 1.46 4.45 7.25 12/31/2009 3.34 21.96 0.66 3.43 7.10 09/30/2009 11.84 5.99 0.97 3.94 7.01 06/30/2009 9.93 -12.48 -1.61 1.52 6.42 03/31/2009 -4.01 -20.33 -5.03 -0.23 5.92 12/31/2008 -10.19 -21.04 -2.69 1.02 6.28 09/30/2008 -7.65 -13.46 1.30 4.58 7.07 06/30/2008 0.07 -4.22 4.74 6.61 7.71 03/31/2008 -4.87 -1.01 5.61 8.37 7.83 12/31/2007 -1.56 5.93 7.13 9.19 8.30 09/30/2007 2.21 12.22 9.77 10.36 8.55 06/30/2007 3.42 13.61 8.76 8.57 8.54 03/31/2007 1.80 8.60 7.82 6.77 8.44 12/31/2006 4.29 10.16 7.94 6.38 8.46 09/30/2006 3.47 7.04 8.81 6.41 8.30 Historical Rolling Performance Total Fund Composite As of June 30, 2016 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 23 Historical Rolling Performance QTR 1 YR 3 YR 5 YR Inception 06/30/2016 2.14 3.11 8.19 8.16 8.45 03/31/2016 2.03 0.53 7.64 7.93 8.45 12/31/2015 3.54 0.91 9.20 8.40 8.45 09/30/2015 -4.45 0.81 8.31 9.11 8.38 06/30/2015 -0.41 4.09 11.64 12.02 8.69 03/31/2015 2.41 8.34 11.06 10.71 8.81 12/31/2014 3.44 7.66 13.13 11.13 8.80 09/30/2014 -1.34 10.35 14.66 11.19 8.74 06/30/2014 3.65 17.99 11.30 14.11 8.91 03/31/2014 1.78 14.51 10.37 16.04 8.83 12/31/2013 6.02 19.85 11.27 13.96 8.85 09/30/2013 5.49 14.21 11.60 9.38 8.66 06/30/2013 0.60 13.30 12.83 6.70 8.49 03/31/2013 6.52 10.41 10.27 6.48 8.57 12/31/2012 1.03 12.20 9.52 4.03 8.34 09/30/2012 4.65 19.60 10.48 3.62 8.39 06/30/2012 -1.97 3.15 13.12 3.07 8.25 03/31/2012 8.25 6.34 18.50 4.27 8.47 12/31/2011 7.70 2.45 12.65 3.06 8.14 09/30/2011 -9.75 1.75 4.65 2.58 7.83 06/30/2011 1.06 22.90 5.77 5.39 8.53 03/31/2011 4.29 14.20 5.25 4.87 8.59 12/31/2010 6.97 14.28 1.96 4.83 8.46 09/30/2010 9.02 10.81 -0.61 3.80 8.18 06/30/2010 -6.10 14.16 -2.82 2.66 7.78 03/31/2010 4.36 37.03 0.49 4.46 8.28 12/31/2009 3.72 22.10 -0.23 3.29 8.14 09/30/2009 12.31 1.64 0.24 4.04 8.03 06/30/2009 12.71 -15.67 -2.50 1.60 7.41 03/31/2009 -7.00 -25.49 -6.77 -0.75 6.75 12/31/2008 -13.66 -24.03 -3.20 1.30 7.33 09/30/2008 -6.81 -12.83 2.28 6.06 8.44 06/30/2008 -0.42 -4.68 5.79 8.26 9.06 03/31/2008 -5.18 -0.61 6.79 10.78 9.24 12/31/2007 -0.94 7.05 8.22 11.45 9.78 09/30/2007 1.90 13.68 11.22 12.81 10.02 06/30/2007 3.84 15.29 10.44 10.04 10.06 03/31/2007 2.13 9.43 9.16 7.90 9.95 12/31/2006 5.20 11.54 9.47 7.73 9.97 09/30/2006 3.34 7.97 10.64 8.42 9.76 Historical Rolling Performance Total Fund Policy Index As of June 30, 2016 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 24 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 8.45 6.04 1.37 103.30 10.00 103.02 2.00 Index 8.19 5.61 1.43 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.54 11.00 -0.60 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 8.36 8.53 0.99 102.21 16.00 101.42 4.00 Index 8.16 8.36 0.98 100.00 15.00 100.00 5.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.45 19.00 -0.36 1.00 Risk and Return 3 Years Investment Index 8.1 8.2 8.3 8.4 8.5 8.6 R e t u r n (% ) 5.5 5.6 5.7 5.8 5.9 6.0 6.1 6.2 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 8.1 8.2 8.3 8.4 R e t u r n (% ) 8.3 8.4 8.5 8.6 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 17 (85%)3 (15%)0 (0%)0 (0%)¾ Index 20 19 (95%)1 (5%)0 (0%)0 (0%)¾ 5 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 19 (95%)1 (5%)0 (0%)0 (0%)¾ Index 20 19 (95%)1 (5%)0 (0%)0 (0%)¾ Strategy Review Total Fund Composite | Total Fund Policy Index As of June 30, 2016 Page 25 Peer Group Analysis - All Public Plans-Total Fund -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 2.12 (32)7.62 (8)2.09 (15)8.45 (3)8.36 (3)˜ Index 2.14 (31)7.91 (8)3.11 (6)8.19 (6)8.16 (5)˜ Median 1.87 5.96 0.66 6.75 6.62 Peer Group Analysis - All Public Plans-Total Fund -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 1.46 (11)10.95 (33)14.75 (17)18.89 (29)0.46 (44)˜ Index 0.81 (19)10.35 (47)14.21 (23)19.60 (17)1.75 (18)˜ Median -0.53 10.16 12.55 17.94 0.18 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 1.89 (11)3.42 (23)-5.13 (54)0.06 (38)2.88 (19)3.89 (3) Index 2.03 (9)3.54 (16)-4.45 (27)-0.41 (69)2.41 (52)3.44 (11) Median 1.03 2.87 -5.04 -0.13 2.43 2.28 Strategy Review Total Fund Composite | Total Fund Policy Index As of June 30, 2016 Page 26 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 0.6 1.2 1.8 -0.6 -1.2 Total Fund Composite Total Fund Policy Index Alpha -0.29 0.00¢ Beta 1.07 1.00¢ Sharpe Ratio 1.37 1.43¢ Treynor Ratio 0.08 0.08¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 1.6 Total Fund Composite Total Fund Policy Index Alpha 0.07 0.00¢ Beta 1.02 1.00¢ Sharpe Ratio 0.99 0.98¢ Treynor Ratio 0.08 0.08¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Total Fund Composite Total Fund Policy Index Actual Correlation 0.99 1.00¢ Information Ratio 0.34 N/A¢ R-Squared 0.99 1.00¢ Tracking Error 0.81 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Total Fund Composite Total Fund Policy Index Actual Correlation 1.00 1.00¢ Information Ratio 0.30 N/A¢ R-Squared 0.99 1.00¢ Tracking Error 0.71 0.00¢ Portfolio Comparison Total Fund As of June 30, 2016 Benchmark: Total Fund Policy Index Page 27 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 11.60 8.06 1.41 99.69 11.00 100.49 1.00 Index 11.66 8.06 1.42 100.00 11.00 100.00 1.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.45 11.00 -0.28 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 12.06 12.33 0.99 99.74 16.00 99.85 4.00 Index 12.10 12.35 0.99 100.00 16.00 100.00 4.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.30 19.00 -0.33 1.00 Risk and Return 3 Years Investment Index 11.5 11.6 11.7 R e t u r n (% ) 8.0 8.1 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 12.0 12.1 12.2 R e t u r n (% ) 12.3 12.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Large Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)9 (45%)11 (55%)0 (0%)¾ Index 20 0 (0%)10 (50%)10 (50%)0 (0%)¾ 5 Year Rolling Percentile Rank IM U.S. Large Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)3 (15%)17 (85%)0 (0%)¾ Index 20 0 (0%)3 (15%)17 (85%)0 (0%)¾ Strategy Review Rhumbline S&P 500 Equity | S&P 500 Index As of June 30, 2016 Page 28 Peer Group Analysis - IM U.S. Large Cap Equity (SA+CF) -13.0 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 2.41 (41)11.10 (23)3.91 (23)11.60 (41)12.06 (36)˜ Index 2.46 (39)11.15 (21)3.99 (22)11.66 (39)12.10 (34)˜ Median 1.92 8.40 0.99 11.13 11.49 Peer Group Analysis - IM U.S. Large Cap Equity (SA+CF) -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 32.0 38.0 44.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment -0.63 (57)19.64 (39)19.30 (72)30.16 (39)1.18 (44)˜ Index -0.61 (57)19.73 (37)19.34 (71)30.20 (39)1.14 (45)˜ Median -0.37 18.79 21.15 29.19 0.72 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 1.35 (30)7.03 (30)-6.47 (43)0.27 (50)0.95 (67)4.96 (48) Index 1.35 (31)7.04 (29)-6.44 (42)0.28 (49)0.95 (67)4.93 (49) Median 0.44 6.17 -6.80 0.27 1.76 4.91 Strategy Review Rhumbline S&P 500 Equity | S&P 500 Index As of June 30, 2016 Page 29 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 0.6 1.2 1.8 -0.6 Rhumbline S&P 500 Equity S&P 500 Index Alpha -0.05 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.41 1.42¢ Treynor Ratio 0.11 0.11¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 -0.4 Rhumbline S&P 500 Equity S&P 500 Index Alpha -0.02 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 0.99 0.99¢ Treynor Ratio 0.12 0.12¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 0.9 1.8 -0.9 -1.8 -2.7 Rhumbline S&P 500 Equity S&P 500 Index Actual Correlation 1.00 1.00¢ Information Ratio -1.45 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.04 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 0.7 1.4 -0.7 -1.4 Rhumbline S&P 500 Equity S&P 500 Index Actual Correlation 1.00 1.00¢ Information Ratio -0.82 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.04 0.00¢ Portfolio Comparison Rhumbline S&P 500 As of June 30, 2016 Benchmark: S&P 500 Index Page 30 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.51 9.36 1.12 99.73 9.00 99.48 3.00 Index 10.53 9.40 1.12 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.36 11.00 -0.28 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.59 15.38 0.74 100.06 15.00 99.60 5.00 Index 10.55 15.37 0.74 100.00 15.00 100.00 5.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.28 19.00 -0.17 1.00 Risk and Return 3 Years Investment Index 10.5 10.6 R e t u r n (% ) 9.3 9.4 9.5 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 10.5 10.6 R e t u r n (% ) 15.3 15.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Mid Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)8 (40%)12 (60%)0 (0%)¾ Index 20 0 (0%)8 (40%)12 (60%)0 (0%)¾ 5 Year Rolling Percentile Rank IM U.S. Mid Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)12 (60%)8 (40%)0 (0%)¾ Index 20 0 (0%)11 (55%)9 (45%)0 (0%)¾ Strategy Review Rhumbline S&P 400 Equity | S&P MidCap 400 Index As of June 30, 2016 Page 31 Peer Group Analysis - IM U.S. Mid Cap Equity (SA+CF) -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 3.96 (20)10.64 (22)1.31 (25)10.51 (46)10.59 (41)˜ Index 3.99 (19)10.74 (20)1.33 (25)10.53 (45)10.55 (44)˜ Median 2.40 6.06 -2.96 10.18 10.24 Peer Group Analysis - IM U.S. Mid Cap Equity (SA+CF) -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 32.0 38.0 44.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 1.45 (52)11.81 (67)27.55 (57)28.90 (35)-1.16 (55)˜ Index 1.40 (53)11.82 (67)27.68 (55)28.54 (39)-1.28 (57)˜ Median 1.47 13.46 28.01 27.10 -0.76 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 3.72 (19)2.61 (65)-8.44 (49)-1.05 (68)5.33 (43)6.31 (39) Index 3.78 (16)2.60 (66)-8.50 (52)-1.06 (70)5.31 (44)6.35 (37) Median 0.65 3.25 -8.48 -0.30 5.01 5.89 Strategy Review Rhumbline S&P 400 Equity | S&P MidCap 400 Index As of June 30, 2016 Page 32 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 1.6 Rhumbline S&P 400 Equity S&P MidCap 400 Index Alpha 0.03 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.12 1.12¢ Treynor Ratio 0.11 0.11¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 1.6 Rhumbline S&P 400 Equity S&P MidCap 400 Index Alpha 0.04 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 0.74 0.74¢ Treynor Ratio 0.11 0.11¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 0.5 1.0 1.5 -0.5 -1.0 Rhumbline S&P 400 Equity S&P MidCap 400 Index Actual Correlation 1.00 1.00¢ Information Ratio -0.25 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.07 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Rhumbline S&P 400 Equity S&P MidCap 400 Index Actual Correlation 1.00 1.00¢ Information Ratio 0.29 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.15 0.00¢ Portfolio Comparison Rhumbline S&P MidCap 400 As of June 30, 2016 Benchmark: S&P MidCap 400 Index Page 33 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.24 11.67 0.90 99.87 10.00 99.52 2.00 Index 10.23 11.70 0.89 100.00 10.00 100.00 2.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.36 11.00 -0.19 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 11.19 16.37 0.74 99.83 16.00 99.75 4.00 Index 11.20 16.39 0.74 100.00 16.00 100.00 4.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.27 19.00 -0.14 1.00 Risk and Return 3 Years Investment Index 10.2 10.3 R e t u r n (% ) 11.6 11.7 11.8 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 11.1 11.2 11.3 R e t u r n (% ) 16.2 16.3 16.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Small Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 1 (5%)15 (75%)4 (20%)0 (0%)¾ Index 20 1 (5%)16 (80%)3 (15%)0 (0%)¾ 5 Year Rolling Percentile Rank IM U.S. Small Cap Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 2 (10%)10 (50%)8 (40%)0 (0%)¾ Index 20 2 (10%)12 (60%)6 (30%)0 (0%)¾ Strategy Review Rhumbline S&P 600 Equity | S&P SmallCap 600 As of June 30, 2016 Page 34 Peer Group Analysis - IM U.S. Small Cap Equity (SA+CF) -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 3.46 (45)10.09 (21)-0.06 (20)10.24 (28)11.19 (24)˜ Index 3.48 (45)10.18 (19)-0.03 (20)10.23 (28)11.20 (23)˜ Median 3.19 6.05 -4.85 8.62 9.74 Peer Group Analysis - IM U.S. Small Cap Equity (SA+CF) -20.0 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 44.0 52.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 3.90 (37)5.79 (55)31.40 (56)33.27 (36)0.21 (38)˜ Index 3.81 (37)5.74 (56)31.51 (54)33.35 (36)0.21 (38)˜ Median 2.41 6.23 32.05 31.55 -1.21 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 2.59 (23)3.72 (36)-9.22 (33)0.22 (59)3.98 (63)9.83 (25) Index 2.66 (22)3.72 (36)-9.27 (34)0.19 (60)3.96 (63)9.85 (25) Median 0.02 3.10 -10.26 0.55 4.42 8.38 Strategy Review Rhumbline S&P 600 Equity | S&P SmallCap 600 As of June 30, 2016 Page 35 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Rhumbline S&P 600 Equity S&P SmallCap 600 Alpha 0.03 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 0.90 0.89¢ Treynor Ratio 0.11 0.10¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Rhumbline S&P 600 Equity S&P SmallCap 600 Alpha 0.00 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 0.74 0.74¢ Treynor Ratio 0.12 0.12¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Rhumbline S&P 600 Equity S&P SmallCap 600 Actual Correlation 1.00 1.00¢ Information Ratio 0.08 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.06 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 -0.4 -0.8 Rhumbline S&P 600 Equity S&P SmallCap 600 Actual Correlation 1.00 1.00¢ Information Ratio -0.20 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.08 0.00¢ Portfolio Comparison Rhumbline S&P 600 As of June 30, 2016 Benchmark: S&P SmallCap 600 Page 36 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.42 9.81 1.06 89.55 8.00 143.85 4.00 Index 13.07 8.20 1.55 100.00 11.00 100.00 1.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.42 11.00 -0.34 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.33 15.80 0.71 100.29 14.00 129.33 6.00 Index 12.35 12.47 1.00 100.00 16.00 100.00 4.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.29 19.00 -0.33 1.00 Risk and Return 3 Years Investment Index 9.6 10.2 10.8 11.4 12.0 12.6 13.2 13.8 R e t u r n (% ) 7.8 8.0 8.2 8.4 8.6 8.8 9.0 9.2 9.4 9.6 9.8 10.0 10.2 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0 R e t u r n (% ) 12.0 12.4 12.8 13.2 13.6 14.0 14.4 14.8 15.2 15.6 16.0 16.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 6 (30%)3 (15%)7 (35%)4 (20%)¾ Index 20 0 (0%)17 (85%)3 (15%)0 (0%)¾ 5 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 16 6 (38%)1 (6%)8 (50%)1 (6%)¾ Index 20 0 (0%)20 (100%)0 (0%)0 (0%)¾ Strategy Review Highland Capital Equity | Russell 1000 Growth Index As of June 30, 2016 Page 37 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment -0.43 (76)2.39 (82)-5.41 (87)10.42 (79)10.33 (73)˜ Index 0.61 (50)8.78 (19)3.02 (20)13.07 (36)12.35 (29)˜ Median 0.61 6.06 -0.57 12.28 11.39 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 32.0 38.0 44.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 4.64 (34)16.29 (70)28.73 (8)27.51 (51)-6.48 (97)˜ Index 3.17 (56)19.15 (39)19.27 (65)29.19 (38)3.78 (30)˜ Median 3.68 18.12 20.31 27.62 1.37 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment -1.76 (55)4.68 (87)-7.61 (81)1.66 (20)5.93 (12)5.17 (49) Index 0.74 (21)7.32 (47)-5.29 (34)0.12 (66)3.84 (52)4.78 (59) Median -1.59 7.05 -5.91 0.63 3.93 5.13 Strategy Review Highland Capital Equity | Russell 1000 Growth Index As of June 30, 2016 Page 38 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 2.0 4.0 -2.0 -4.0 -6.0 Highland Capital Equity Russell 1000 Growth Index Alpha -4.02 0.00¢ Beta 1.14 1.00¢ Sharpe Ratio 1.06 1.55¢ Treynor Ratio 0.09 0.13¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 2.0 4.0 -2.0 -4.0 -6.0 Highland Capital Equity Russell 1000 Growth Index Alpha -4.05 0.00¢ Beta 1.22 1.00¢ Sharpe Ratio 0.71 1.00¢ Treynor Ratio 0.09 0.13¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 2.0 4.0 -2.0 Highland Capital Equity Russell 1000 Growth Index Actual Correlation 0.95 1.00¢ Information Ratio -0.72 N/A¢ R-Squared 0.91 1.00¢ Tracking Error 3.20 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 2.0 4.0 6.0 -2.0 Highland Capital Equity Russell 1000 Growth Index Actual Correlation 0.96 1.00¢ Information Ratio -0.27 N/A¢ R-Squared 0.93 1.00¢ Tracking Error 5.05 0.00¢ Portfolio Comparison Highland Equity As of June 30, 2016 Benchmark: Russell 1000 Growth Index Page 39 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.97 11.19 0.40 95.98 8.00 76.64 4.00 Index 2.52 11.37 0.27 100.00 7.00 100.00 5.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.16 11.00 -0.62 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.27 15.35 0.29 104.17 13.00 92.99 7.00 Index 2.15 14.43 0.22 100.00 12.00 100.00 8.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.21 19.00 -0.38 1.00 Risk and Return 3 Years Investment Index 2.0 2.4 2.8 3.2 3.6 4.0 4.4 R e t u r n (% ) 11.1 11.2 11.3 11.4 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 1.8 2.1 2.4 2.7 3.0 3.3 3.6 R e t u r n (% ) 14.2 14.4 14.6 14.8 15.0 15.2 15.4 15.6 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM International Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 1 (5%)13 (65%)6 (30%)0 (0%)¾ Index 20 0 (0%)9 (45%)8 (40%)3 (15%)¾ 5 Year Rolling Percentile Rank IM International Equity (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)11 (55%)9 (45%)0 (0%)¾ Index 20 0 (0%)0 (0%)12 (60%)8 (40%)¾ Strategy Review Vanguard International Equity | MSCI EAFE Index As of June 30, 2016 Page 40 Peer Group Analysis - IM International Equity (SA+CF) -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 0.38 (43)1.91 (63)-9.49 (60)3.97 (39)3.27 (42)˜ Index -1.19 (62)0.52 (72)-9.72 (63)2.52 (57)2.15 (56)˜ Median -0.28 3.59 -8.20 3.08 2.69 Peer Group Analysis - IM International Equity (SA+CF) -36.0 -28.0 -20.0 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 44.0 52.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment -8.53 (53)7.89 (29)23.72 (37)19.39 (32)-11.12 (62)˜ Index -8.27 (52)4.70 (63)24.29 (33)14.33 (72)-8.94 (44)˜ Median -7.99 5.79 20.35 17.30 -9.61 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment -0.93 (54)2.47 (72)-11.19 (54)0.63 (69)4.38 (48)-1.94 (34) Index -2.88 (78)4.75 (43)-10.19 (44)0.84 (63)5.00 (39)-3.53 (61) Median -0.53 4.30 -10.78 1.45 4.24 -2.95 Strategy Review Vanguard International Equity | MSCI EAFE Index As of June 30, 2016 Page 41 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 4.06 2.56 1.56 95.20 10.00 71.58 2.00 Index 4.06 2.60 1.54 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 1.35 11.00 -0.25 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.92 3.33 1.16 103.18 14.00 98.85 6.00 Index 3.76 2.94 1.26 100.00 15.00 100.00 5.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 1.23 19.00 -0.83 1.00 Risk and Return 3 Years Investment Index 3.9 4.0 4.1 R e t u r n (% ) 2.5 2.6 2.7 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 3.7 3.8 3.9 4.0 R e t u r n (% ) 2.8 2.9 3.0 3.1 3.2 3.3 3.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)0 (0%)8 (40%)12 (60%)¾ Index 20 0 (0%)0 (0%)0 (0%)20 (100%)¾ 5 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)0 (0%)1 (5%)19 (95%)¾ Index 20 0 (0%)0 (0%)4 (20%)16 (80%)¾ Strategy Review Highland Capital Fixed Income | Barclays Aggregate Index As of June 30, 2016 Page 42 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) 0.8 1.5 2.2 2.9 3.6 4.3 5.0 5.7 6.4 7.1 7.8 8.5 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 2.41 (40)5.89 (7)7.17 (6)4.06 (82)3.92 (77)˜ Index 2.21 (69)4.71 (67)6.00 (62)4.06 (82)3.76 (89)˜ Median 2.32 4.98 6.14 4.34 4.14 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 2.22 (88)3.51 (94)-2.54 (99)6.07 (71)5.66 (26)˜ Index 2.94 (59)3.96 (80)-1.68 (80)5.16 (91)5.26 (49)˜ Median 3.02 4.50 -1.24 6.60 5.25 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 3.61 (1)-0.21 (11)1.21 (43)-1.58 (47)1.54 (86)1.06 (96) Index 3.03 (51)-0.57 (72)1.23 (40)-1.68 (72)1.61 (75)1.79 (39) Median 3.03 -0.45 1.14 -1.60 1.74 1.74 Strategy Review Highland Capital Fixed Income | Barclays Aggregate Index As of June 30, 2016 Page 43 Risk / Reward Historical Statistics 3 Years Ending June 30, 2016 0.0 0.5 1.0 1.5 2.0 Highland Capital Fixed Income Barclays Aggregate Index Alpha 0.19 0.00¢ Beta 0.95 1.00¢ Sharpe Ratio 1.56 1.54¢ Treynor Ratio 0.04 0.04¢ Risk / Reward Historical Statistics 5 Years Ending June 30, 2016 0.0 0.6 1.2 1.8 -0.6 Highland Capital Fixed Income Barclays Aggregate Index Alpha -0.23 0.00¢ Beta 1.10 1.00¢ Sharpe Ratio 1.16 1.26¢ Treynor Ratio 0.03 0.04¢ Benchmark Relative Historical Statistics 3 Years Ending June 30, 2016 0.0 0.4 0.8 1.2 -0.4 Highland Capital Fixed Income Barclays Aggregate Index Actual Correlation 0.97 1.00¢ Information Ratio -0.01 N/A¢ R-Squared 0.93 1.00¢ Tracking Error 0.68 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending June 30, 2016 0.0 0.3 0.6 0.9 1.2 Highland Capital Fixed Income Barclays Aggregate Index Actual Correlation 0.97 1.00¢ Information Ratio 0.20 N/A¢ R-Squared 0.95 1.00¢ Tracking Error 0.82 0.00¢ Portfolio Comparison Highland Fixed Income As of June 30, 2016 Benchmark: Barclays Aggregate Index Page 44 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 1.88 5.11 0.38 29.12 8.00 7.26 4.00 Index 2.36 8.02 0.32 100.00 6.00 100.00 6.00 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.71 11.00 -0.16 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 1.34 5.32 0.26 33.72 12.00 10.03 8.00 Index 0.31 7.02 0.07 100.00 9.00 100.00 11.00 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.75 19.00 -0.39 1.00 Risk and Return 3 Years Investment Index 1.6 1.8 2.0 2.2 2.4 2.6 R e t u r n (% ) 4.5 4.8 5.1 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.5 7.8 8.1 8.4 8.7 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 0.0 0.3 0.6 0.9 1.2 1.5 R e t u r n (% ) 5.0 5.2 5.4 5.6 5.8 6.0 6.2 6.4 6.6 6.8 7.0 7.2 7.4 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM International Fixed Income All (MF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 12 0 (0%)4 (33%)8 (67%)0 (0%)¾ Index 20 0 (0%)1 (5%)3 (15%)16 (80%)¾ 5 Year Rolling Percentile Rank IM International Fixed Income All (MF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 4 0 (0%)0 (0%)4 (100%)0 (0%)¾ Index 20 0 (0%)3 (15%)4 (20%)13 (65%)¾ Strategy Review Oppenheimer Dreyfus | Citigroup Non-U.S. World Government Bond As of June 30, 2016 Page 45 Peer Group Analysis - IM International Fixed Income All (MF) -13.0 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 2.71 (76)6.77 (80)0.68 (79)1.88 (57)1.34 (58)˜ Index 4.04 (47)11.94 (30)13.85 (1)2.36 (52)0.31 (73)˜ Median 3.88 9.59 5.44 2.46 2.15 Peer Group Analysis - IM International Fixed Income All (MF) -28.0 -20.0 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment -4.81 (31)2.98 (69)-2.82 (41)7.90 (69)0.32 (41)˜ Index -7.01 (46)-0.99 (89)-5.63 (80)3.45 (91)4.13 (4)˜ Median -7.85 5.33 -3.56 14.24 -0.27 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 5.03 (40)-1.02 (83)-5.70 (69)1.42 (13)0.37 (54)-0.84 (14) Index 9.10 (3)-1.38 (90)1.71 (2)-1.54 (76)-4.36 (95)-2.91 (52) Median 4.66 0.49 -4.26 -0.33 0.49 -2.68 Strategy Review Oppenheimer Dreyfus | Citigroup Non-U.S. World Government Bond As of June 30, 2016 Page 46 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 12.40 1.77 6.61 106.67 12.00 N/A N/A Index 11.61 0.81 13.23 100.00 12.00 N/A N/A 90 Day U.S. Treasury Bill 0.07 0.04 N/A 0.60 11.00 N/A 1.00 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment N/A N/A N/A N/A N/A N/A N/A Index 11.52 0.72 14.78 100.00 20.00 N/A N/A 90 Day U.S. Treasury Bill 0.07 0.03 N/A 0.60 19.00 N/A 1.00 Risk and Return 3 Years Investment Index 11.2 11.4 11.6 11.8 12.0 12.2 12.4 12.6 R e t u r n (% ) 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 11.5 11.6 R e t u r n (% ) 0.6 0.7 0.8 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 5 0 (0%)0 (0%)0 (0%)5 (100%)¾ Index 20 3 (15%)1 (5%)1 (5%)15 (75%)¾ 5 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA+CF) 0.0 25.0 50.0 75.0 100.0 R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 0 0 0 0 0¾ Index 20 9 (45%)1 (5%)2 (10%)8 (40%)¾ Strategy Review American Realty | NCREIF Property Index As of June 30, 2016 Page 47 Peer Group Analysis - IM U.S. Private Real Estate (SA+CF) -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 26.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 1.25 (100)7.07 (96)10.70 (96)12.40 (83)N/A˜ Index 2.03 (78)7.33 (91)10.64 (100)11.61 (88)11.52 (91)˜ Median 2.54 8.26 12.64 13.52 13.37 Peer Group Analysis - IM U.S. Private Real Estate (SA+CF) -4.0 4.0 12.0 20.0 28.0 36.0 44.0 52.0 60.0 68.0 R e t u r n 4 Quarters Ending Sep-2015 4 Quarters Ending Sep-2014 4 Quarters Ending Sep-2013 4 Quarters Ending Sep-2012 4 Quarters Ending Sep-2011 Investment 14.05 (70)12.45 (72)12.30 (73)N/A N/A˜ Index 13.48 (78)11.26 (91)11.00 (83)11.00 (75)16.10 (71)˜ Median 16.27 13.17 13.35 13.03 16.62 Comparative Performance 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Investment 2.63 (51)3.03 (79)3.39 (64)3.74 (50)4.44 (33)1.81 (95) Index 2.21 (63)2.91 (91)3.09 (75)3.14 (72)3.57 (52)3.04 (65) Median 2.64 3.64 3.63 3.74 3.74 3.71 Strategy Review American Realty | NCREIF Property Index As of June 30, 2016 Page 48 Total Policy Historical Hybrid Composition Allocation Mandate Weight (%) Mar-1992 Barclays Aggregate Index 35.00 S&P 500 Index 25.00 S&P MidCap 400 Index 10.00 Russell 1000 Growth Index 10.00 S&P SmallCap 600 10.00 MSCI EAFE Index 10.00 Oct-2010 Barclays Aggregate Index 31.00 S&P 500 Index 25.00 S&P MidCap 400 Index 10.00 Russell 1000 Growth Index 10.00 MSCI EAFE Index 10.00 S&P SmallCap 600 10.00 Citigroup Non-U.S. World Government Bond 4.00 Apr-2012 Barclays Aggregate Index 29.00 S&P 500 Index 25.00 S&P MidCap 400 Index 10.00 Russell 1000 Growth Index 10.00 MSCI EAFE Index 10.00 S&P SmallCap 600 10.00 Citigroup Non-U.S. World Government Bond 4.00 NCREIF Property Index 2.00 Oct-2015 Barclays Aggregate Index 26.00 S&P 500 Index 25.00 S&P MidCap 400 Index 10.00 Russell 1000 Growth Index 10.00 MSCI EAFE Index 10.00 S&P SmallCap 600 10.00 Citigroup Non-U.S. World Government Bond 4.00 NCREIF Property Index 5.00 Total Equity Historical Hybrid Composition Allocation Mandate Weight (%) Jun-2000 S&P 500 Index 100.00 Jan-2003 S&P 500 Index 80.00 S&P MidCap 400 Index 20.00 Jan-2004 S&P 500 Index 60.00 S&P MidCap 400 Index 20.00 S&P SmallCap 600 20.00 Jan-2007 S&P 500 Index 62.00 S&P MidCap 400 Index 15.00 S&P SmallCap 600 15.00 MSCI EAFE Index 8.00 Oct-2007 S&P 500 Index 38.40 S&P MidCap 400 Index 15.40 S&P SmallCap 600 15.40 MSCI EAFE Index 15.40 Russell 1000 Growth Index 15.40 Total Fixed Income Historical Hybrid Composition Allocation Mandate Weight (%) Apr-1994 Barclays Aggregate Index 89.00 Citigroup Non-U.S. World Government Bond 11.00 Benchmark History Investment Policy Benchmarks As of June 30, 2016 Page 49 Palm Beach Gardens Police Review of International Equity & Bond Funds Peer Group Analysis - IM International Large Cap Value Equity (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to provide long-term capital appreciation. The fund invests mainly in common stocks of companies located outside the United States that are considered by an advisor to be undervalued. Such stocks, called value stocks, often are out of favor in periods when investors are drawn to companies with strong prospects for growth. It invests in large -, mid-, and small-capitalization companies and is expected to diversify its assets in countries across developed and emerging markets. The fund uses multiple investment advisors. Product Name :Vanguard Intl Val;Inv (VTRIX) Fund Family :Vanguard Group Inc Ticker :VTRIX Peer Group :IM International Large Cap Value Equity (MF) Benchmark :MSCI EAFE Value Fund Inception :05/16/1983 Portfolio Manager :Team Managed Total Assets :$7,631 Million Total Assets Date :06/30/2016 Gross Expense :0.46% Net Expense :0.46% Turnover :36% -40.00 -25.00 -10.00 5.00 20.00 35.00 R e t u r n QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 Vanguard International Value (VTRIX)0.13 (13)-0.39 (14)-11.62 (29)1.32 (13)1.23 (18)-6.44 (98)-6.69 (23)22.15 (29)20.18 (18)-14.58 (77)˜ MSCI EAFE Value -2.44 (46)-6.18 (59)-14.91 (65)0.42 (40)0.61 (30)-5.22 (89)-4.92 (14)23.59 (12)18.43 (40)-11.65 (24)˜ Median -2.54 -5.97 -13.34 0.03 0.13 -2.78 -8.70 21.39 17.65 -13.55 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Vanguard International Value (VTRIX)-0.51 (15)2.49 (57)-13.44 (99)1.22 (54)4.18 (71)-5.68 (69) MSCI EAFE Value -3.84 (46)2.72 (37)-11.71 (87)0.48 (78)4.00 (73)-4.81 (46) IM International Large Cap Value Equity (MF) Median -4.28 2.53 -10.31 1.30 4.48 -4.86 As of June 30, 2016 Performance Review Vanguard International Value (VTRIX) NONE Page 51 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 Over Performance Under Performance Earliest Date Latest Date -8.0 0.0 8.0 16.0 24.0 V a n g u a r d I n t e r n a t i o n a l V a l u e (V T R I X ) (% ) -8.0 0.0 8.0 16.0 24.0 MSCI EAFE Value (%) Over Performance Under Performance 0.00 25.00 50.00 75.00 100.00R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Vanguard International Value (VTRIX)20 7 (35%)10 (50%)3 (15%)0 (0%)˜ MSCI EAFE Value 20 11 (55%)7 (35%)2 (10%)0 (0%)˜ -0.50 0.00 0.50 1.00 1.50 R e t u r n (% ) 15.40 15.60 15.80 16.00 16.20 Risk (Standard Deviation %) Return Standard Deviation Vanguard International Value (VTRIX)1.23 15.84˜ MSCI EAFE Value 0.61 16.10˜ Median 0.13 15.61¾ -0.50 0.00 0.50 1.00 1.50 2.00 R e t u r n (% ) 13.02 13.23 13.44 13.65 13.86 14.07 14.28 Risk (Standard Deviation %) Return Standard Deviation Vanguard International Value (VTRIX)1.32 13.63˜ MSCI EAFE Value 0.42 14.12˜ Median 0.03 13.19¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard International Value (VTRIX)4.09 94.39 89.69 0.93 0.20 0.16 0.92 8.73 MSCI EAFE Value 0.00 100.00 100.00 0.00 N/A 0.10 1.00 9.37 90 Day U.S. Treasury Bill 14.12 0.10 -0.24 0.07 -0.10 N/A 0.00 0.02 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard International Value (VTRIX)4.39 95.18 92.11 0.67 0.13 0.15 0.95 10.97 MSCI EAFE Value 0.00 100.00 100.00 0.00 N/A 0.11 1.00 11.18 90 Day U.S. Treasury Bill 16.11 0.13 -0.17 0.07 -0.11 N/A 0.00 0.01 As of June 30, 2016 Performance Review Vanguard International Value (VTRIX) NONE Page 52 Peer Group Analysis - IM International Large Cap Growth Equity (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to provide long-term capital appreciation. The fund invests predominantly in the stocks of companies located outside the United States and is expected to diversify its assets in countries across developed and emerging markets. In selecting stocks, the fund's advisors evaluate foreign markets around the world and choose large-, mid-, and small-capitalization companies considered to have above-average growth potential. The fund uses multiple investment advisors. Product Name :Vanguard Intl Gro;Adm (VWILX) Fund Family :Vanguard Group Inc Ticker :VWILX Peer Group :IM International Large Cap Growth Equity (MF) Benchmark :MSCI EAFE Growth Index Fund Inception :08/13/2001 Portfolio Manager :Team Managed Total Assets :$14,547 Million Total Assets Date :06/30/2016 Gross Expense :0.34% Net Expense :0.34% Turnover :29% -40.00 -25.00 -10.00 5.00 20.00 35.00 R e t u r n QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 Vanguard International Growth (VWILX)0.50 (16)-1.51 (28)-8.22 (23)4.14 (15)2.44 (23)-0.54 (49)-5.51 (64)23.12 (5)20.18 (30)-13.58 (48)˜ MSCI EAFE Growth Index 0.05 (25)-1.91 (29)-4.44 (15)4.55 (4)3.61 (8)4.47 (10)-4.06 (41)22.95 (8)17.28 (67)-11.82 (30)˜ Median -1.23 -3.49 -10.26 2.32 1.79 -0.57 -4.97 18.23 18.83 -13.61 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Vanguard International Growth (VWILX)-2.00 (29)7.09 (3)-12.99 (93)1.18 (35)5.49 (52)-2.93 (74) MSCI EAFE Growth Index -1.96 (28)6.70 (7)-8.69 (19)1.19 (35)5.97 (22)-2.25 (61) IM International Large Cap Growth Equity (MF) Median -2.45 4.32 -10.05 0.97 5.53 -1.80 As of June 30, 2016 Performance Review Vanguard International Growth (VWILX) NONE Page 53 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 Over Performance Under Performance Earliest Date Latest Date -8.0 0.0 8.0 16.0 24.0 32.0 V a n g u a r d I n t e r n a t i o n a l G r o w t h (V W I L X ) (% ) -8.0 0.0 8.0 16.0 24.0 32.0 MSCI EAFE Growth Index (%) Over Performance Under Performance 0.00 25.00 50.00 75.00 100.00R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Vanguard International Growth (VWILX)20 11 (55%)9 (45%)0 (0%)0 (0%)˜ MSCI EAFE Growth Index 20 12 (60%)7 (35%)1 (5%)0 (0%)˜ 1.20 1.80 2.40 3.00 3.60 4.20 R e t u r n (% ) 14.10 14.57 15.04 15.51 15.98 16.45 16.92 17.39 Risk (Standard Deviation %) Return Standard Deviation Vanguard International Growth (VWILX)2.44 16.70˜ MSCI EAFE Growth Index 3.61 14.67˜ Median 1.79 14.69¾ 1.48 2.22 2.96 3.70 4.44 5.18 R e t u r n (% ) 11.96 12.42 12.88 13.34 13.80 14.26 14.72 Risk (Standard Deviation %) Return Standard Deviation Vanguard International Growth (VWILX)4.14 14.34˜ MSCI EAFE Growth Index 4.55 12.36˜ Median 2.32 12.48¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard International Growth (VWILX)3.69 106.25 109.46 -0.80 -0.04 0.35 1.13 9.03 MSCI EAFE Growth Index 0.00 100.00 100.00 0.00 N/A 0.42 1.00 7.63 90 Day U.S. Treasury Bill 12.37 0.13 -0.30 0.07 -0.42 N/A 0.00 0.02 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard International Growth (VWILX)4.18 103.55 109.36 -1.31 -0.20 0.22 1.11 11.64 MSCI EAFE Growth Index 0.00 100.00 100.00 0.00 N/A 0.31 1.00 10.25 90 Day U.S. Treasury Bill 14.68 0.15 -0.19 0.07 -0.31 N/A 0.00 0.01 As of June 30, 2016 Performance Review Vanguard International Growth (VWILX) NONE Page 54 Peer Group Analysis - IM Global Multi-Cap Core Equity (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to provide long-term capital appreciation. The fund invests mainly in common stocks of companies located outside the United States that are considered by an advisor to be undervalued. Such stocks, called value stocks, often are out of favor in periods when investors are drawn to companies with strong prospects for growth. It invests in large -, mid-, and small-capitalization companies and is expected to diversify its assets in countries across developed and emerging markets. The fund uses multiple investment advisors. Product Name :Vanguard Glbl Eqty;Inv (VHGEX) Fund Family :Vanguard Group Inc Ticker :VHGEX Peer Group :IM Global Multi-Cap Core Equity (MF) Benchmark :MSCI AC World IMI Fund Inception :08/14/1995 Portfolio Manager :Team Managed Total Assets :$4,284 Million Total Assets Date :06/30/2016 Gross Expense :0.57% Net Expense :0.57% Turnover :36% -40.00 -20.00 0.00 20.00 40.00 60.00 R e t u r n QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 Vanguard Glbl Eqty;Inv (VHGEX)0.51 (53)0.25 (43)-3.47 (35)6.90 (26)6.41 (32)-0.24 (20)4.31 (40)27.65 (40)19.52 (9)-8.90 (59)˜ MSCI AC World Index 1.19 (39)1.58 (30)-3.17 (28)6.60 (31)5.95 (38)-1.84 (49)4.71 (34)23.44 (67)16.80 (36)-6.86 (38)˜ Median 0.74 -0.66 -5.59 5.43 5.72 -1.88 3.10 26.50 15.28 -7.84 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Vanguard Glbl Eqty;Inv (VHGEX)-0.25 (40)5.26 (25)-8.53 (30)-0.12 (71)3.73 (29)1.20 (45) MSCI AC World IMI 0.44 (26)5.02 (34)-9.48 (59)0.70 (37)2.71 (55)0.70 (57) IM Global Multi-Cap Core Equity (MF) Median -0.97 4.55 -9.37 0.39 2.77 0.91 As of June 30, 2016 Performance Review Vanguard Glbl Eqty;Inv (VHGEX) NONE Page 55 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 Over Performance Under Performance Earliest Date Latest Date -8.0 0.0 8.0 16.0 24.0 32.0 V a n g u a r d G l b l E q t y ;I n v (V H G E X ) (% ) -8.0 0.0 8.0 16.0 24.0 32.0 MSCI AC World IMI (%) Over Performance Under Performance 0.00 25.00 50.00 75.00 100.00R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Vanguard Glbl Eqty;Inv (VHGEX)20 6 (30%)12 (60%)2 (10%)0 (0%)˜ MSCI AC World Index 20 0 (0%)10 (50%)10 (50%)0 (0%)˜ 5.70 6.00 6.30 6.60 R e t u r n (% ) 13.37 13.44 13.51 13.58 13.65 13.72 13.79 Risk (Standard Deviation %) Return Standard Deviation Vanguard Glbl Eqty;Inv (VHGEX)6.41 13.58˜ MSCI AC World Index 5.95 13.43˜ Median 5.72 13.72¾ 5.39 5.88 6.37 6.86 7.35 R e t u r n (% ) 11.41 11.48 11.55 11.62 11.69 11.76 Risk (Standard Deviation %) Return Standard Deviation Vanguard Glbl Eqty;Inv (VHGEX)6.90 11.41˜ MSCI AC World Index 6.60 11.66˜ Median 5.43 11.68¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard Glbl Eqty;Inv (VHGEX)1.95 98.89 96.84 0.43 0.09 0.64 0.96 6.79 MSCI AC World IMI 0.00 100.00 100.00 0.00 N/A 0.61 1.00 6.94 90 Day U.S. Treasury Bill 11.66 0.13 -0.34 0.07 -0.61 N/A 0.00 0.02 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Vanguard Glbl Eqty;Inv (VHGEX)2.08 100.74 98.29 0.46 0.20 0.52 0.99 9.03 MSCI AC World IMI 0.00 100.00 100.00 0.00 N/A 0.49 1.00 8.88 90 Day U.S. Treasury Bill 13.53 0.15 -0.23 0.07 -0.49 N/A 0.00 0.01 As of June 30, 2016 Performance Review Vanguard Glbl Eqty;Inv (VHGEX) NONE Page 56 Peer Group Analysis - IM International Fixed Income (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to provide long-term capital appreciation. The fund invests predominantly in the stocks of companies located outside the United States and is expected to diversify its assets in countries across developed and emerging markets. In selecting stocks, the fund's advisors evaluate foreign markets around the world and choose large-, mid-, and small-capitalization companies considered to have above-average growth potential. The fund uses multiple investment advisors. Product Name :Dreyfus Intl Bond;A (DIBAX) Fund Family :Dreyfus Corporation Ticker :DIBAX Peer Group :IM International Fixed Income (MF) Benchmark :Citigroup Non-U.S. World Government Bond Fund Inception :12/30/2005 Portfolio Manager :Leduc/Murphy/Srivastava Total Assets :$147 Million Total Assets Date :06/30/2016 Gross Expense :1.12% Net Expense :1.12% Turnover :217% -20.00 -12.00 -4.00 4.00 12.00 20.00 28.00 R e t u r n QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 Dreyfus Intl Bond;A (DIBAX)2.35 (58)8.43 (49)4.70 (59)2.03 (34)1.72 (22)-6.76 (63)3.58 (23)-3.92 (57)9.28 (36)3.21 (42)˜ Citigroup Non-U.S. World Government Bond 4.04 (2)13.50 (1)13.85 (1)2.36 (28)0.31 (59)-5.54 (48)-2.68 (72)-4.56 (64)1.50 (98)5.17 (21)˜ Median 2.58 8.20 6.13 1.33 0.93 -5.75 0.39 -3.74 6.77 2.75 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Dreyfus Intl Bond;A (DIBAX)5.94 (51)-1.59 (86)-1.88 (67)-3.38 (85)-0.06 (38)-0.72 (25) Citigroup Non-U.S. World Government Bond 9.10 (1)-1.38 (79)1.71 (4)-1.54 (41)-4.36 (87)-2.91 (78) IM International Fixed Income (MF) Median 6.05 -0.77 -1.39 -1.78 -1.40 -1.68 As of June 30, 2016 Performance Review Dreyfus Intl Bond;A (DIBAX) NONE Page 57 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 Over Performance Earliest Date Latest Date -8.0 0.0 8.0 16.0 24.0 D r e y f u s I n t l B o n d ;A (D I B A X ) (% ) -8.0 0.0 8.0 16.0 24.0 Citigroup Non-U.S. World Government Bond (%) Over Performance Under Performance 0.00 25.00 50.00 75.00 100.00R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Dreyfus Intl Bond;A (DIBAX)20 2 (10%)18 (90%)0 (0%)0 (0%)˜ Citigroup Non-U.S. World Government Bond 20 0 (0%)3 (15%)8 (40%)9 (45%)˜ 0.00 0.50 1.00 1.50 2.00 2.50 R e t u r n (% ) 5.06 5.29 5.52 5.75 5.98 6.21 6.44 6.67 6.90 Risk (Standard Deviation %) Return Standard Deviation Dreyfus Intl Bond;A (DIBAX)1.72 5.35˜ Citigroup Non-U.S. World Government Bond 0.31 6.49˜ Median 0.93 6.45¾ 1.02 1.36 1.70 2.04 2.38 2.72 R e t u r n (% ) 4.44 4.81 5.18 5.55 5.92 6.29 6.66 7.03 7.40 Risk (Standard Deviation %) Return Standard Deviation Dreyfus Intl Bond;A (DIBAX)2.03 4.94˜ Citigroup Non-U.S. World Government Bond 2.36 6.81˜ Median 1.33 6.29¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dreyfus Intl Bond;A (DIBAX)4.21 51.98 42.15 0.67 -0.10 0.42 0.57 2.91 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.37 1.00 4.43 90 Day U.S. Treasury Bill 6.78 0.59 -0.05 0.06 -0.37 N/A 0.00 0.02 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dreyfus Intl Bond;A (DIBAX)3.77 71.40 54.76 1.51 0.35 0.33 0.67 3.54 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.07 1.00 4.58 90 Day U.S. Treasury Bill 6.48 0.51 -0.21 0.06 -0.07 N/A 0.00 0.01 As of June 30, 2016 Performance Review Dreyfus Intl Bond;A (DIBAX) NONE Page 58 Peer Group Analysis - IM International Fixed Income (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to provide long-term capital appreciation. The fund invests predominantly in the stocks of companies located outside the United States and is expected to diversify its assets in countries across developed and emerging markets. In selecting stocks, the fund's advisors evaluate foreign markets around the world and choose large-, mid-, and small-capitalization companies considered to have above-average growth potential. The fund uses multiple investment advisors. Product Name :Oppenheimer Intl Bd;A (OIBAX) Fund Family :OppenheimerFunds Inc Ticker :OIBAX Peer Group :IM International Fixed Income (MF) Benchmark :Citigroup Non-U.S. World Government Bond Fund Inception :06/15/1995 Portfolio Manager :Baijal/Kelly Total Assets :$1,655 Million Total Assets Date :06/30/2016 Gross Expense :1.02% Net Expense :1.02% Turnover :111% -20.00 -12.00 -4.00 4.00 12.00 20.00 28.00 R e t u r n QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 Oppenheimer Intl Bd;A (OIBAX)3.08 (28)7.29 (56)4.58 (60)1.74 (39)0.94 (50)-3.72 (28)0.32 (52)-4.16 (60)10.77 (24)-0.28 (80)˜ Citigroup Non-U.S. World Government Bond 4.04 (2)13.50 (1)13.85 (1)2.36 (28)0.31 (59)-5.54 (48)-2.68 (72)-4.56 (64)1.50 (98)5.17 (21)˜ Median 2.58 8.20 6.13 1.33 0.93 -5.75 0.39 -3.74 6.77 2.75 1 Qtr Ending Mar-2016 1 Qtr Ending Dec-2015 1 Qtr Ending Sep-2015 1 Qtr Ending Jun-2015 1 Qtr Ending Mar-2015 1 Qtr Ending Dec-2014 Oppenheimer Intl Bd;A (OIBAX)4.08 (66)-0.96 (55)-1.59 (58)-1.88 (51)0.67 (22)-0.80 (26) Citigroup Non-U.S. World Government Bond 9.10 (1)-1.38 (79)1.71 (4)-1.54 (41)-4.36 (87)-2.91 (78) IM International Fixed Income (MF) Median 6.05 -0.77 -1.39 -1.78 -1.40 -1.68 As of June 30, 2016 Performance Review Oppenheimer Intl Bd;A (OIBAX) NONE Page 59 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 Over Performance Under Performance Earliest Date Latest Date -10.0 -5.0 0.0 5.0 10.0 15.0 O p p e n h e i m e r I n t l B d ;A (O I B A X ) (% ) -10.0 -5.0 0.0 5.0 10.0 15.0 Citigroup Non-U.S. World Government Bond (%) Over Performance Under Performance 0.00 25.00 50.00 75.00 100.00R e t u r n P e r c e n t i l e R a n k 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 6/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Oppenheimer Intl Bd;A (OIBAX)20 0 (0%)14 (70%)6 (30%)0 (0%)˜ Citigroup Non-U.S. World Government Bond 20 0 (0%)3 (15%)8 (40%)9 (45%)˜ 0.00 0.30 0.60 0.90 1.20 R e t u r n (% ) 6.09 6.16 6.23 6.30 6.37 6.44 6.51 6.58 Risk (Standard Deviation %) Return Standard Deviation Oppenheimer Intl Bd;A (OIBAX)0.94 6.18˜ Citigroup Non-U.S. World Government Bond 0.31 6.49˜ Median 0.93 6.45¾ 1.02 1.36 1.70 2.04 2.38 2.72 R e t u r n (% ) 3.87 4.30 4.73 5.16 5.59 6.02 6.45 6.88 7.31 Risk (Standard Deviation %) Return Standard Deviation Oppenheimer Intl Bd;A (OIBAX)1.74 4.69˜ Citigroup Non-U.S. World Government Bond 2.36 6.81˜ Median 1.33 6.29¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Oppenheimer Intl Bd;A (OIBAX)5.38 42.01 32.69 0.75 -0.14 0.38 0.42 2.69 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.37 1.00 4.43 90 Day U.S. Treasury Bill 6.78 0.59 -0.05 0.06 -0.37 N/A 0.00 0.02 Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Oppenheimer Intl Bd;A (OIBAX)5.45 64.74 55.84 0.82 0.11 0.17 0.60 4.63 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.07 1.00 4.58 90 Day U.S. Treasury Bill 6.48 0.51 -0.21 0.06 -0.07 N/A 0.00 0.01 As of June 30, 2016 Performance Review Oppenheimer Intl Bd;A (OIBAX) NONE Page 60 Ou r M i s s i o n To r e p r e s e n t t h e s o l e i n t e r e s t o f o u r c l i e n t s b y r e d e f i n i n g i n d e p e n d e n c e . Ab o u t U s Th e B o g d a h n G r o u p i s a n i n d e p e n d e n t i n v e s t m e n t c o n s u l t i n g f i r m t h a t a d v i s e s o v e r 5 3 0 in s t i t u t i o n a l c l i e n t s w i t h a p p r o x i m a t e l y $6 4 b i l l i o n i n a s s e t s u n d e r a d v i s e m e n t . W e a r e a n in d e p e n d e n t f i r m , e m p l o y e e o w n e d , a n d s e r v e a s a f i d u c i a r y t o e a c h o f o u r c l i e n t s . O u r f i r m re c e i v e s 1 0 0 % o f o u r r e v e n u e t h r o u g h h a r d - d o l l a r f e e s f o r c o n s u l t i n g s e r v i c e s . W e h a v e n e v e r en g a g e d i n s o f t - d o l l a r f e e a r r a n g e m e n t s a n d a r e no t a f f i l i a t e d w i t h a n y I n v e s t m e n t M a n a g e m e n t fi r m s o r o t h e r s e r v i c e p r o v i d e r s . Ou r f i r m b e l i e v e s t h a t t r u s t , i n t e g r i t y , c o n f i d e n c e , a n d r e s p e c t a r e t h e c o r n e r s t o n e s o f a n y su c c e s s f u l b u s i n e s s r e l a t i o n s h i p . A s a r e s u l t , w e w o r k t o e n s u r e o u r c l i e n t ’ s i n t e r e s t s a r e p l a c e d fi r s t . O u r o b j e c t i v e i s t o s e r v e a s o u r c l i e n t ’ s a d v o c a t e a n d g u i d e i n t h e i m p l e m e n t a t i o n , ma i n t e n a n c e , a d m i n i s t r a t i o n , a n d f i d u c i a r y o v e r s i g h t o f t h e i r i n v e s t m e n t a n d r e t i r e m e n t pr o g r a m s . E x c e p t i o n a l s e r v i c e , a s d e f i n e d b y e a c h c l i e n t , i s o u r g o a l . Th e B o g d a h n G r o u p , h e a d q u a r t e r e d i n O r l a n d o , F L a l s o h a s o f f i c e s i n C h i c a g o , I L ; P i t t s b u r g h , PA ; T u l s a , O K ; C l e v e l a n d , O H ; a n d D e t r o i t , M I . The Bogdahn Group Firm Overview Ma r k e t V a l u e s a s o f M a r c h 2 0 1 6 . Pa g e 6 1 In v e s t m e n t C o n s u l t i n g S e r v i c e s Th e B o g d a h n G r o u p h a s o n e l i n e o f b u s i n e s s : i n v e s t m e n t c o n s u l t i n g . W e s t r i v e t o s i m p l i f y i n v e s t m e n t an d f i d u c i a r y d e c i s i o n s f o r o u r c l i e n t s b y p r o v i d i n g g o v e r n a n c e , m o n i t o r i n g a n d r i s k o v e r s i g h t , ed u c a t i o n , s t r a t e g i c i m p l e m e n t a t i o n , a n d s u p e r i o r i n v e s t m e n t o p t i o n s . T h e B o g d a h n G r o u p d e l i v e r s cu s t o m i z e d s e r v i c e s t o m e e t e a c h c l i e n t ’ s u n i q u e n e e d s . Si n c e n o t w o c l i e n t s ’ n e e d s a r e t h e s a m e a n d c o n t i n u o u s l y e v o l v e o v e r t i m e , w e s t r i v e t o m a i n t a i n a n on g o i n g u n d e r s t a n d i n g o f e a c h c l i e n t ’ s c o n s t r a i n t s a n d o b j e c t i v e s t o d e l i v e r o n g o i n g v a l u e - a d d e d se r v i c e s . O u r c o r e s e r v i c e s r e p r e s e n t a s t r o n g f o u n d a t i o n f o r c l i e n t r e l a t i o n s h i p s . The Bogdahn Group Firm Overview Tr a d i t i o n a l C o n s u l t i n g S e r v i c e s • I n v e s t m e n t p o l i c y s t a t e m e n t d e v e l o p m e n t • S t r a t e g i c a s s e t a l l o c a t i o n • M a n a g e r / S t r a t e g y E v a l u a t i o n • I n v e s t m e n t M a n a g e r D u e D i l i g e n c e • I n v e s t m e n t M a n a g e r S e a r c h e s • P e r f o r m a n c e m e a s u r e m e n t & r e p o r t i n g • Q u a r t e r l y E c o n o m i c S u m m a r y • A t t r i b u t i o n a n a l y s i s • C l i e n t E d u c a t i o n • S p e n d i n g p o l i c y r e v i e w a n d d e v e l o p m e n t • V e n d o r s e a r c h & f e e n e g o t i a t i o n s • D i s t r i b u t i o n a n d m a n a g e m e n t o f o p e n R F P s wh e r e r e q u i r e d • C u s t o d i a n E v a l u a t i o n • I n t e r p r e t a t i o n a n d a s s i s t a n c e i n a s s e t / l i a b i l i t y re p o r t s De f i n e d C o n t r i b u t i o n C o n s u l t i n g S e r v i c e s • D e s i g n , D i s t r i b u t e , C o l l e c t a n d E v a l u a t e R F P re s p o n s e s f o r R e c o r d k e e p i n g a n d Ad m i n i s t r a t i o n S e r v i c e s • F a c i l i t a t e t h e V e n d o r S e l e c t i o n P r o c e s s a n d In t e r v i e w s • A s s i s t w i t h p r o v i d e r s c o p e o f w o r k d e f i n i t i o n , ne g o t i a t i o n o f f e e s a n d c o n t r a c t s • I n v e s t m e n t P o l i c y D e v e l o p m e n t a n d R e v i e w • M a n a g e r / S t r a t e g y E v a l u a t i o n • P l a n L e v e l F e e A n a l y s i s • B o a r d / I n v e s t m e n t C o m m i t t e e E d u c a t i o n • F u n d E v a l u a t i o n a n d R e c o m m e n d a t i o n s • R e v i e w E m p l o y e e E d u c a t i o n S t r a t e g y f o r f i t wi t h D e m o g r a p h i c s a n d P l a n G o a l s • P r o v i d e G u i d a n c e f o r D e f i n e d C o n t r i b u t i o n St r a t e g i e s a n d I n v e s t m e n t D e c i s i o n s Re t i r e m e n t P l a n s - P u b l i c F u n d s - - T a f t - H a r t l e y - - C o r p o r a t i o n s - En d o w m e n t & F o u n d a t i o n s Cl i e n t S e r v i c e S u p p o r t Th e B o g d a h n G r o u p ’ s r e s o u r c e s i n c l u d e d e d i c a t e d t e a m s co m p r i s e d o f : • 34 I n v e s t m e n t C o n s u l t a n t s • 8 R e s e a r c h A n a l y s t s • 7 I n t e r n a l C o n s u l t a n t s • 11 P e r f o r m a n c e M e a s u r e m e n t A n a l y s t s • 3 I n f o r m a t i o n T e c h n o l o g y E x p e r t s Th e B o g d a h n G r o u p a l s o h a s a d e d i c a t e d m a n a g e m e n t te a m c o n s i s t i n g o f p r o f e s s i o n a l s i n c o m p l i a n c e , f i n a n c e , op e r a t i o n s , a n d c o n s u l t i n g s e r v i c e s f u r t h e r s u p p o r t i n g e a c h de p a r t m e n t a n d u l t i m a t e l y e a c h c l i e n t . In v e s t m e n t D a t a b a s e s Ou r f i r m u t i l i z e s s o m e o f t h e m o s t r o b u s t a n d d e e p da t a b a s e s t h a t a r e a v a i l a b l e t o i n v e s t m e n t c o n s u l t a n t s . Th e s e i n c l u d e B l o o m b e r g , I n v e s t m e n t M e t r i c s P A R i s , eV e s t m e n t A l l i a n c e , Z e p h y r S t y l e A D V I S O R , M o r n i n g s t a r Di r e c t , e t c . Pa g e 6 2 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 e r 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 l i o ' s a c t u a l p e r f o r ma n c e a n d i t s e x p e c t e d r e t u 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 er m i n e d b y b e t a . I t d e t e r m i n e s t h e p o r t f o l i o ' 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 c e 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 t h e m a r k e t . I t i s a m e a s u r e o f t he 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 tu r n h i g h e r t h a n t h a t o f i t s b e n c hm a r k . H i g h e r c o n s i s t e n c y i n d i cates 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 i s t r i b u t e d t o P a i d I n ( D P I ) - Th e r a t i o o f m o n e y d i s t r i b u t e d t o L i m i t e d P a r t n e r s b y t h e f u n d , r e l a t i v e t o c o n t r i b u t i o n s . I t i s ca l c u l a t e d b y d i v i d i n g c u m u l at i v e d i s t r i b u t i o n s b y p a i d in capital. This multiple sh o w s t h e i n v e s t o r h o w m u c h m o n e y t h e y g o t b a c k . I t i s a g o o d me a s u r e f o r e v a l u a t i n g a f u n d l a te r i n i t s l i f e b e c a u s e t h e r e a re more distributions to measure against. 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 be n c h 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 icates 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 ne g a t i v 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 ki n 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 sk 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 t h e m a n a g e r a n d i s de r i v e d b y d i v i d i n g t h e a c t i v e 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 by 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 po 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 n ed 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 ed 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 c t i o n a s t h e a p p r o p r i a t e b e n ch 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 di 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 ul t 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 hi s t o r i c a l r i s k - a d j u s t e d p e r f o rm 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 et 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 . T o t a l V a l u e t o P a i d I n ( T V P I ) - Th e r a t i o o f t h e c u r r e n t v a l u e o f r e m a i n i n g i n v e s t m e n t s w i t h i n a f u n d , p l u s t h e t o t a l v a l u e o f a l l d i s t r i b u t i o n s t o d a t e , r e l a ti v e t o t h e t o t a l a m o u n t o f c a p i t a l p a i d i n t o t h e f u n d to d a t e . I t i s a g o o d m e a s u r e o f p e r f o r m a n c e b e f o r e t h e e n d o f a f u n d ’ s l i f e 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 of a p o r t f o l i o ' s r e t u r n s i n re 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 in g 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 un 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 et t e r h i s t o r i c a l r i s k - a d j u s t e d p e r f o r m a n c e . U p 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 be n c h m a r k d u r i n g p e r i o d s o f p o s i t iv e r e t u r n s . A h i g h e r v a l u e i n dicates better product performance. Pa g e 6 3 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 cl i e n t f o r w h i c h i t w a s p r ep 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 ib 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 long with the 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 t h i s e v a l u a t i o n t o 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 ed c a l c u l a t i o n s w h i c h a r e f o u nd 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 at i 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 f o r m a t i o n t h a t i s r e c e i v ed 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 es t r a n s a c t i o n s a s i n d i c a t ed o n t h e c u s t o d i a n s t a t e m e n 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 v a 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 hn Group with 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 en t i n f o r m a t i o n p r e s e n t e d i s f re e f r o m m a t e r i a l m i s s t a t 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 a n 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 B o g d a h n G r o u p w i t h a p r actical 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 at t 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 ig n i f i c a n t l y m i s s t a t e d . Th i s p e r f o r m a n c e r e p o r t i s b a s e d o n d a t a o b t a i n e d b y t h e c l i e n t ’s c u s t o d i a n ( s ) , i n v e s t m e n t f u n d ad m i n i s t r a t o r , o r o t h e r s o u r c e s b e l i e v e d t o b e r e l i a b l e . W h i l e t h e s e s o u r c e s a r e b e l i e v e d t o be reliable, the data pr o v i d e r s a r e r e s p o n s i b l e f o r t he a c c u r a c y a n d c o m p l e t e n e s s o f th e i r s t a t e m e n t s . C l i e n t s a r e e n c o u r a g e d t o c o m p a r e t h e r e c o r d s o f t h e i r c u s t o d i a n ( s ) t o e n s u r e t h i s r e p o r t f a i r l y a n d a c c u r a t ely reflects their various as s e t p o s i t i o n s . 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 w a r r a n t i t s a c c u r a c y o r c o m p l e te n e s s . P a s t p e r f o r m a n c e i s n o t an indication of future 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 nt a i n e d i n t h i s r e p o r t i s f o r i nf 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 ho u l d n o t b e c o n s t r u e d t o b e a n o f f e r t o b u y o r s e l l a n y s e c u r i ti e s , i n v e s t m e n t consulting, or investment management 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 u m e n t m a y c o n t a i n d a ta p r o v i d e d b y f r o m i n 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 ov 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 ov i d e d b y S t 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 t h 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 nt a 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 o f s e r v i c e s i n j u risdictions 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 on p r 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 t h 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 ns or performance 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 se s 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 ac t u a l p e r f o r m a n c e . P a s t p e r f or m 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 ov 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 ti o 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 ced or 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 na 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 on 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 o f t h i s i n f o r m a tion 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 pe 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 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 il 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 information makes any 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 i o 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 re o 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 h e r p e r s o n h e r e b y 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 s s , 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 spect to this information. 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 , an y o f i t s a f f i l i a t e s o r a n y o t h er 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 at i n g t h i s i n f o r m a t i o n h a v e a n y 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 on 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 es ( 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 , l o s t p r o f i t s ) e v e n i f n o t i f i ed 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 ty of such damages. 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 ro u 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 c o 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 a l a n d a l l t r a d e m a r k s a n d 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 ai 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 u n a u t h o r i z e d u s e , d i s c l o s u r e , c op 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 ri b 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 e r p r e s e n t a t i o n o f the 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 he 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 t h 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 pr o v i d e d b y M o r n i n g s t a r . A l l r i gh t s r e s e r v e d . U s e o f t h i s 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 . I t 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 ti t u t i o n s o n l y . T h e i n f o r m a tion 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 ed t o b e a c c u r a t e , c o m p l e t e o r t i me l y . N e i t h e r M o r n i n g s t a r n o r its content providers are 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 hi s 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 li m i t e d o r e x c l u d e d b y l a w i n y o ur j u r i s d i c t i o n . P a s t f i n a n c i a l 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 . Pa g e 6 4