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HomeMy WebLinkAboutAgenda Police Pension 120216 Agenda City of Palm Beach Gardens Police Officers’ Pension Fund MEETING OF DECEMBER 2, 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 • Brad Seidensticker, Secretary • Christopher McDermott, Trustee • Marc Glass, Trustee • Greg Mull, Trustee 3. Welcome new Trustee Christopher McDermott 4. Investment Manager Report – Highland Capital 5. Investment Consultant Report – The Bogdahn Group (John McCann) • 9/30/2016 Quarterly Performance Group • Revised Investment Policy Guidelines • Equity Analysis Review 6. Attorney Report – KKJ&L (Bonni Jensen) 7. Administrator Report – Resource Centers (Denise McNeill) • 2015 State Money & 9/30/2016 City Contribution Update 8. Approval of Minutes • September 22, 2016 Regular Meeting 9. Disbursements 10. Benefit Approvals 11. Financial Statements 12. Other Business 13. Public Comments 14. Adjourn Next Meeting Date: Scheduled for Thursday March 9, 2017 @ 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. PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals Meeting of December 2, 2016 APPLICATION TO EXIT THE DROP JEFF MAIN DATE OF BIRTH 04/24/1960 DATE OF HIRE 05/12/1992 DROP ENTRY DATE 06/01/2012 DATE OF TERMINATION 12/29/2016 FORM OF BENEFIT LIFE ANNUITY MONTHLY BENEFIT AMOUNT $7,128.32 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (due to retirement 1/1/17) JEFF MAIN DATE OF RETIREMENT 12/29/2016 DATE OF BIRTH 04/24/1960 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $312,000.00 TAX WITHHOLDING (20%) $ 62,500.00 TOTAL NET DISTRIBUTION $250,000.00 CURRENT DROP ACCOUNT BALANCE $427,300.89 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (11/15/16) GWEN FLEMING DATE OF RETIREMENT 10/10/2014 DATE OF BIRTH 12/04/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $6,000.00 TAX WITHHOLDING (20%) $4,800.00 TOTAL NET DISTRIBUTION $1,200.00 CURRENT DROP ACCOUNT BALANCE $21,163.56 _________________________ KATHLEEN HATCHETT DATE OF RETIREMENT 01/01/2015 DATE OF BIRTH 03/30/2964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $12,000.00 TAX WITHHOLDING (20%) $ 2,400.00 TOTAL NET DISTRIBUTION $ 9,600.00 CURRENT DROP ACCOUNT BALANCE $229,108.93 _________________________ ROBERT ODELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $30,000.00 TAX WITHHOLDING (20%) $ 8,000.00 TOTAL NET DISTRIBUTION $24,000.00 CURRENT DROP ACCOUNT BALANCE $595,452.06 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNT (12/15/16) JOHN BOYLE DATE OF RETIREMENT 08/26/2016 DATE OF BIRTH 01/03/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $18,000.00 TAX WITHHOLDING (20%) $ 3,600.00 TOTAL NET DISTRIBUTION $14,400.00 CURRENT DROP ACCOUNT BALANCE $474,048.02 _________________________ GARY CARMACK DATE OF RETIREMENT 09/21/2016 DATE OF BIRTH 03/22/1952 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $120,000.00 TAX WITHHOLDING (20%) $24,000.00 TOTAL NET DISTRIBUTION $96,000.00 CURRENT DROP ACCOUNT BALANCE $448,182.01 _________________________ ERNEST CARR DATE OF RETIREMENT 04/30/2015 DATE OF BIRTH 02/26/1941 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $35,000.00 TAX WITHHOLDING (20%) $ 7,000.00 TOTAL NET DISTRIBUTION $28,000.00 CURRENT DROP ACCOUNT BALANCE $438,641.58 _________________________ ROBERT ODELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $230,000.00 TAX WITHHOLDING (20%) $ 46,000.00 TOTAL NET DISTRIBUTION $184,000.00 CURRENT DROP ACCOUNT BALANCE $565,452.06 _________________________ 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 $297,682.51 _________________________ __________________________________, 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 S e p t e m b e r 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 8 6 9 , 3 8 1 . 6 4 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 2 , 7 5 2 . 8 8 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 7 9 , 8 5 0 . 8 7 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 3 1 1 , 7 0 0 . 5 2 13 1 0 P r e p a i d 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 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 9 4 9 . 1 2 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 8 3 8 , 6 9 4 . 5 9 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 7 , 5 6 6 , 8 1 5 . 2 9 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 1 8 , 1 5 3 , 3 4 0 . 2 8 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 4 5 , 9 1 3 , 6 1 2 . 3 1 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 1 2 6 , 3 3 8 . 5 5 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 ) 0 . 0 0 14 6 1 D u e f r o m B r o k e r 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 0 . 0 0 1 1 8 , 5 4 2 . 9 9 14 6 2 D u e t o B r o k e r 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 0 . 0 0 ( 2 , 9 3 2 . 6 9 ) 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 7 2 , 7 1 4 , 4 1 1 . 3 2 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 6 , 5 6 8 , 3 4 4 . 1 2 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 8 3 3 , 3 1 0 . 3 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 4 , 4 4 9 . 4 6 7 3 7 , 5 3 0 . 0 1 7 5 4 , 3 9 9 . 9 7 7 5 7 , 0 3 1 . 0 3 7 5 9 , 7 9 4 . 2 9 7 8 0 , 5 5 7 . 0 6 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 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 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 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 ( 4 7 , 5 6 4 . 0 4 ) 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 8 0 , 3 0 2 . 5 0 7 9 , 7 5 3 , 5 8 4 . 5 4 7 9 , 7 3 1 , 0 6 4 . 1 9 8 1 , 3 9 8 , 7 1 3 . 3 6 8 1 , 6 9 1 , 0 2 4 . 4 2 8 2 , 1 1 3 , 6 9 3 . 8 7 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 ) : 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 F e 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 A u g u s t E n d S e p t e m b e r Y e a r - T o - D a t e 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 0 . 0 0 2 , 8 9 7 , 7 5 4 . 0 0 40 5 0 St a t e C o n t r i b u 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 0 . 0 0 6 4 3 , 2 5 9 . 1 0 6 4 3 , 2 5 9 . 1 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 5 3 , 2 5 6 . 1 2 3 6 , 7 4 8 . 2 3 3 6 , 4 8 8 . 0 3 4 5 9 , 5 7 1 . 3 0 41 1 0 Bu y b a c k C o n t r i b u t i o n s - P r e - T a x 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 0 ( 7 , 1 5 0 . 7 3 ) ( 7 , 1 5 0 . 7 3 ) 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 , 7 1 7 . 5 1 ) ( 4 7 , 8 4 4 . 4 5 ) ( 2 2 3 , 0 7 5 . 0 7 ) 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 , 4 9 4 . 2 8 ( 1 , 2 9 3 . 9 2 ) 6 , 8 6 4 . 0 3 1 , 4 6 4 . 2 5 ( 1 6 , 5 9 4 . 4 4 ) 1 7 0 , 0 2 3 . 0 1 1 7 0 , 2 0 1 . 3 0 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 . 7 7 ) 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 1 9 0 , 8 0 4 . 5 7 1 8 4 , 4 6 8 . 8 0 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 . 4 2 ) 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 8 2 . 8 3 ( 5 1 , 0 8 8 . 6 1 ) 7 3 , 7 7 9 . 7 6 5 8 7 , 6 8 3 . 4 0 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 . 5 2 ( 3 5 , 0 1 1 . 6 1 ) ( 2 2 6 , 4 1 7 . 8 5 ) 5 2 1 , 0 9 9 . 4 0 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 , 2 4 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 . 9 9 6 8 5 , 3 0 3 . 6 6 1 3 6 , 0 9 0 . 4 2 1 , 5 1 7 , 5 3 4 . 0 3 1 9 7 , 2 5 5 . 4 5 ( 1 8 1 , 2 0 9 . 2 3 ) 5 , 2 6 4 , 4 3 3 . 8 5 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 . 0 0 0 . 0 0 4 1 , 4 0 7 . 7 1 5 7 , 6 5 6 . 6 8 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 . 0 0 0 . 0 0 1 3 , 7 1 9 . 9 1 1 8 1 , 0 6 3 . 0 0 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 . 0 0 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 1 5 , 1 1 3 . 2 0 4 0 , 1 8 1 . 8 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 4 , 1 8 6 . 9 4 0 . 0 0 0 . 0 0 1 8 , 1 9 6 . 1 2 4 6 , 5 7 5 . 5 1 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 4 3 . 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 0 . 0 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 ) 0 . 0 0 ( 1 7 , 8 1 0 . 7 3 ) 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 0 . 0 0 9 7 , 9 1 8 . 9 3 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 3 , 7 5 8 . 4 8 6 1 , 1 3 9 . 7 3 1 2 1 , 3 6 7 . 2 4 5 3 , 9 2 7 . 9 9 6 4 , 8 9 1 . 0 1 1 1 3 , 9 6 1 . 4 1 1 , 0 7 9 , 1 8 7 . 2 0 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 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 . 0 0 ( 4 , 3 4 0 . 5 9 ) 0 . 0 0 0 . 0 0 0 . 0 0 ( 4 , 3 4 0 . 5 9 ) 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 0 . 0 0 ( 2 , 4 1 0 . 1 0 ) 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 0 . 0 0 2 0 5 , 7 1 2 . 7 3 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 3 , 4 5 4 . 3 4 8 6 6 , 0 1 1 . 6 9 5 2 0 , 1 1 3 . 2 5 2 , 0 6 1 , 8 7 5 . 3 4 6 2 5 , 4 4 0 . 9 7 8 5 4 , 1 3 0 . 5 6 1 2 , 3 3 8 , 6 3 9 . 0 1 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 F e 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 A u g u s t E n d S e p t e m b e r Y e a r - T o - D a t e Ex p e n s e : 50 0 0 Be n e f i t P a y m e n t s 1 9 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 3 2 , 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 , 8 9 1 . 4 8 2 8 2 , 5 9 1 . 2 4 2 , 7 9 1 , 9 5 9 . 6 6 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 , 2 8 6 . 3 9 7 , 2 8 6 . 3 9 8 7 , 4 3 6 . 6 8 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 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 2 , 7 3 5 . 1 4 2 7 2 , 8 2 1 . 6 8 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 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 . 0 0 2 4 , 5 0 0 . 0 0 4 0 , 0 0 0 . 0 0 7 2 6 , 5 8 7 . 1 6 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 . 0 0 6 , 1 5 0 . 0 0 4 , 9 0 0 . 0 0 6 0 , 0 5 0 . 0 0 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 . 0 0 5 , 3 7 4 . 1 2 1 9 , 3 6 6 . 8 0 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 5 , 3 7 4 . 9 5 2 2 , 3 6 0 . 4 0 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 4 7 , 3 5 9 . 4 9 0 . 0 0 0 . 0 0 5 0 , 3 4 1 . 4 3 0 . 0 0 0 . 0 0 5 1 , 4 0 9 . 6 2 1 9 6 , 2 3 9 . 6 7 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 , 6 8 4 . 0 0 8 , 4 9 9 . 0 0 1 , 4 5 3 . 0 0 4 , 2 9 3 . 0 0 4 4 , 2 5 6 . 0 0 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 7 5 . 0 0 2 , 6 0 6 . 2 0 2 , 5 7 5 . 0 0 2 , 5 7 5 . 0 0 2 , 6 4 6 . 8 9 2 , 5 7 5 . 0 0 3 1 , 0 8 8 . 6 4 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 . 0 0 0 . 0 0 0 . 0 0 1 5 , 1 5 0 . 0 0 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 . 2 9 2 2 1 . 9 1 2 1 5 . 2 0 2 0 3 . 3 3 2 , 3 0 5 . 2 5 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 , 1 0 2 . 5 0 1 , 0 3 5 . 0 0 9 0 0 . 0 0 4 , 0 8 8 . 7 5 1 6 , 3 3 1 . 8 5 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 7 6 . 1 3 1 7 4 . 6 1 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 3 9 . 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 1 , 5 0 2 . 5 6 1 6 , 2 8 8 . 4 5 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 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 6 9 0 . 0 0 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 ( 9 4 9 . 1 2 ) 5 , 6 7 5 . 4 2 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 . 0 0 0 . 0 0 0 . 0 0 1 , 0 1 3 . 0 0 0 . 0 0 0 . 0 0 1 , 0 1 3 . 0 0 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 5 5 , 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 , 1 2 9 . 9 1 4 3 1 , 4 6 1 . 1 1 4 , 3 1 7 , 8 4 1 . 1 9 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 7 9 , 2 2 0 , 0 5 7 . 3 3 7 9 , 2 8 0 , 3 0 2 . 5 0 7 9 , 7 5 3 , 5 8 4 . 5 4 7 9 , 7 3 1 , 0 6 4 . 1 9 8 1 , 3 9 8 , 7 1 3 . 3 6 8 1 , 6 9 1 , 0 2 4 . 4 2 7 4 , 0 9 2 , 8 9 6 . 0 5 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 6 0 , 2 4 5 . 1 7 4 7 3 , 2 8 2 . 0 4 ( 2 2 , 5 2 0 . 3 5 ) 1 , 6 6 7 , 6 4 9 . 1 7 2 9 2 , 3 1 1 . 0 6 4 2 2 , 6 6 9 . 4 5 8 , 0 2 0 , 7 9 7 . 8 2 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 , 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 8 0 , 3 0 2 . 5 0 7 9 , 7 5 3 , 5 8 4 . 5 4 7 9 , 7 3 1 , 0 6 4 . 1 9 8 1 , 3 9 8 , 7 1 3 . 3 6 8 1 , 6 9 1 , 0 2 4 . 4 2 8 2 , 1 1 3 , 6 9 3 . 8 7 8 2 , 1 1 3 , 6 9 3 . 8 7 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 Officers’ Retirement Fund Investment Review Period Ending September 30, 2016 Palm Beach Gardens Police Officers’ Retirement Fund Commentary Page 1 Total Return Summary and Portfolio Allocation Page 3 Performance Returns for Various Periods Page 5 Equity Sector Allocation and Returns Page 6 Top Ten Holdings Page 7 Fixed Income Characteristics Page 8 Portfolio Holdings Page 12 Purchases and Sales Page 20 Period Ending 9/30/2016 Table of Contents Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 3Q16 Large Cap Growth Portfolio Manager Commentary The past year has been a very difficult time for active equity managers in the US but extremely so for Large Cap Growth managers, where 90%have underperformed the index according to Bank of America Merrill Lynch.One of the main reasons for this type of performance is the type of stocks that have led returns in 2016.According to the Morgan Stanley factor library,as of 9/30/16, the top performing groups of stocks were:Low Momentum,+29.00%, High Volatility, +23.54%, High Dividend, +22.88%,Low Growth, +17.35%, and Low Quality, +12.39%. With the exception of the High Dividend stocks, the other types of names are not the ones that tend to offer investors the best returns over the long run. Our investment process focuses on higher quality, higher growth, positive momentum, and in particular, less expensive stocks within the investible universe. Given the above example of the types of stocks that have led returns this year, this is not an environment in which we would expect to outperform the index. Over the long run, value based strategies tend to outperform indexes as the true value of the underlying stocks is realized. However, there are times when a value focus strategy will underperform. While we do understand that underperformance is hard to stomach for investors over any time period,we continue to believe that building portfolios with a bias towards cheaper, higher growth, higher quality stocks will benefit investors over the long run. Performance Attribution Year-to-Date,no single stock caused significant underperformance, rather it was the value and growth bias that hurt the most. Stock selection in Healthcare detracted the most where missing Biogen’s jump on August 3 due to takeover speculation caused underperformance, -0.30%. Others that hurt in Healthcare have been overweights to Gilead, -0.18%, and United Healthcare, -0.15%. Within Industrials, very inexpensive transportation overweights, Delta, -0.28%, Amerco, -0.21%, Alaska Air, -0.17%, hurt returns even as fuel costs have declined significantly. The top stock selection has come from Consumer Staples with positions in Tyson Foods, +0.38%, Spectrum Brands, +0.25%, Kraft Heinz, +0.10%, and Constellation Brands, +0.10%. As stated above, our internal research and experience over time have shown that having portfolios that have a lower valuation, higher growth, higher quality and momentum bias will outperform over the long run.We continue to follow these core investment principles and believe they will be rewarded with excess returns versus the index. -Highland Capital Management 1 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 3Q16 Fixed Income Portfolio Manager Commentary The story continues to be the same in the bond market; central bankers across the globe remain highly accommodative.At the September meeting, the Federal Reserve decided not to raise interest rates, however three voting members dissented, favoring a hike in short term rates. The big take away from the meeting was the Fed’s forecasted interest rate projections for the next several years, were revised lower.In 2017,the median fed funds projection dropped to approximately 1%more in line with market expectations. Additionally, the median estimate for longer-run GDP growth dropped to 1.8% from 2.0% previously. Recent headlines have put US and European banks back in the spotlight. The US Justice Department is seeking $14 billion from Deutsche Bank to settle a probe tied to mortgage- backed securities issued during 2005 to 2007.Deutsche Bank is under pressure as investors fear the company is not adequately capitalized to settle such a probe. We continue to find opportunities in the corporate bond sector and are cognizant of the overwhelming demand from Asia/Europe based on lower real rates in those markets. Corporate new issuance remains robust and 3Q 2016 was the third largest supply quarter ($362.3 billion)of all time. The demand outside of the United States has definitely benefited both the primary and secondary bond market. The Barclays US Gov/Credit index was up 0.4% during the quarter bringing year-to- date performance to 6.7%. The Gov/Credit index continues to outperform the Barclays Aggregate which is up 5.8% year-to-date. The main reason for the benchmark discrepancy is that mortgage-backed securities (+3.72%) have underperformed the broad market and the Gov/Credit does not include mortgages. The Barclays Intermediate Gov/Credit index was up 0.16% during the quarter bringing year-to-date performance to 4.24%. The drivers of performance were almost identical to the previous quarter –namely, long duration bonds and assets perceived to have the most risk did the best. During September, these longer duration securities underperformed,but it was not enough to offset the strong start to the quarter (July/August). The energy sector continues to out- perform the broad credit market. The Federal Reserve raised short term interest rates .25% last December and said that it expected to raise rates four times in 2016.Because of a variety of weak economic news during the first three quarters of 2016,the Fed balked and did nothing.It now is signaling that it will likely raise rates by .25% this December.We believe the Fed will raise rates in December,but will continue their message of caution and patience in bringing interest rates to levels consistent with sustainable growth.It is becoming clear, even to many central bankers, that a low to negative interest rate will not in and of itself create economic growth or inflation. Those effects, like almost everything else in economic and market activity, are driven by the collective psychology of humans behaving as humans. Without the presence of optimism among economic participants, reducing interest rates to extremely low levels in order to produce growth is probably just pushing on a string.As many have seen over the last few years,it can also be counterproductive: desperately low rates can produce a degree of pessimism that may discourage investment and the assumption of risk.On the other hand, lifting interest rates from very low levels may not discourage investing and risk taking when in the context of growing consumer and investor optimism. -Highland Capital Investment Team 2 Palm Beach Gardens Police Officers’ Retirement Fund Contributions Withdrawals Gain/Loss Cumulative Return Annualized Return Quarter (7/1/16 - 9/30/16) One Year (10/1/15 - 9/30/16) Five Year (10/1/11 - 9/30/16) Contributions Withdrawals Gain/Loss Cumulative Return Annualized Return Quarter (7/1/16 - 9/30/16) One Year (10/1/15 - 9/30/16) Five Year (10/1/11 - 9/30/16) $1,101,748 6.41%------- $17,260,205 $17,054,825 -$205,380 $5,323,761 -$7,912,487 $2,383,346 15.97%3.01% $17,875,282 $17,054,825 -$820,457 $250,000 -$2,172,205 $0 -$967,472 $109,769 0.63%------- Beginning Market Value Ending Market Value Difference $17,912,527 $17,054,825 -$857,703 ------- $4,623,373 $7,992,000 $3,368,628 $2,166,603 -$3,975,569 $5,177,593 99.28%14.79% Total Return Summary - Fixed $310,999 4.05%------- $7,979,012 $7,992,000 $12,988 $0 -$459,205 $472,193 6.43% $7,683,474 $7,992,000 $308,527 $0 -$2,472 Period Ending 9/30/2016 Beginning Market Value Ending Market Value Difference Total Return Summary - Equity 3 Palm Beach Gardens Police Officers’ Retirement Fund Cash Cash $425,185 5.3% Growth Growth $7,566,815 94.7% Total Total $7,992,000 100.0% Cash Cash $532,406 6.7% Fixed Income Fixed Income $16,522,419 206.7% Total Total $17,054,825 213.4% $17,199,570 96.0% $17,912,527 100.0% $7,683,474 100.0% Asset Allocation - Fixed As of 6/30/2016 As of 9/30/2016 $712,958 4.0% Asset Allocation - Equity As of 6/30/2016 As of 9/30/2016 $217,760 2.8% $7,465,714 97.2% Period Ending 9/30/2016 Cash Growth Cash Growth Cash Fixed Income Cash Fixed Income 4 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Quarter One Year Five Year (Annualized) (7/1/16 - 9/30/16)(10/1/15 - 9/30/16)(10/1/11 - 9/30/16) Growth 4.05%6.43%14.79% R1000G 4.58%13.76%16.60% Fixed Income 0.63%6.41%3.01% BCGC 0.40%5.86%3.24% BCAG 0.46%5.19%3.08% BCGC (A+ or Better)0.03%4.96%2.82% Performance Returns for Various Periods 0%2%4%6% Growth Fixed Income 0%5%10%15% Growth Fixed Income 0%5%10%15%20% Growth Fixed Income 5 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Domestic Equity Sector Allocation vs. R1000G Domestic Equity Quarterly Sector Returns vs. R1000G 0.9 0.8 12.3 22.1 8.8 16.4 4.8 32.2 0.8 0.0 0.90.6 3.6 10.4 20.6 9.6 16.8 2.7 31.5 1.2 0.1 2.9 0% 5% 10% 15% 20% 25% 30% 35% ENERGY MATERIALS INDUSTRIALS CONS. DISCRETION CONSUMER STAPLES HEALTH CARE FINANCIALS INFO. TECH.TELECOM.UTILITIES REAL ESTATE 11.6 -4.4 1.0 3.2 -1.5 -2.1 7.9 12.3 -5.5 0.0 1.8 12.0 3.6 2.9 2.8 -4.9 2.1 8.5 12.4 -4.1 -1.8 -4.8 -10% -5% 0% 5% 10% 15% ENERGY MATERIALS INDUSTRIALS CONS. DISCRETION CONSUMER STAPLES HEALTH CARE FINANCIALS INFO. TECH.TELECOM.UTILITIES REAL ESTATE Account R1000G 6 Palm Beach Gardens Police Officers’ Retirement Fund Security Weight %QTD Return %Security Weight %QTD Return %Security Weight %QTD Return % APPLE COMPUTER 5.48 18.72 APPLE INC 3.22 18.89 APPLE INC 5.40 18.89 AMAZON.COM INC 4.30 18.29 MICROSOFT CORP 2.37 13.27 MICROSOFT CORP 4.15 13.27 FACEBOOK INC 3.96 12.24 EXXON MOBIL CORP 1.91 -6.08 AMAZON.COM INC 3.10 17.00 MICROSOFT CORPORATION 3.53 12.30 AMAZON.COM INC 1.74 17.00 FACEBOOK INC-A 2.74 12.24 ALPHABET INC CL C 3.01 12.31 JOHNSON & JOHNSON 1.71 -1.96 ALPHABET INC-CL A 2.25 14.29 HOME DEPOT INC 2.48 1.32 FACEBOOK INC-A 1.58 12.24 ALPHABET INC-CL C 2.19 12.31 COMCAST CORP CL A 2.05 2.20 BERKSHIRE HATHAWAY INC-CL B 1.45 -0.22 HOME DEPOT INC 1.52 1.29 WALT DISNEY COMPANY 1.97 -4.37 GENERAL ELECTRIC CO 1.40 -5.18 VISA INC-CLASS A SHARES 1.50 11.69 CVS CORPORATION 1.84 -6.63 AT&T INC 1.32 -4.97 WALT DISNEY CO/THE 1.43 -4.39 AMGEN INC 1.77 10.33 PROCTER & GAMBLE CO/THE 1.27 6.83 COMCAST CORP-CLASS A 1.41 2.19 Period Ending 9/30/2016 Account S&P 500 Russell 1000 Growth Top Ten Domestic Equity Holdings 30.39 69.61 TOP TEN HOLDINGS OTHER HOLDINGS 17.97 82.03 TOP TEN HOLDINGS OTHER HOLDINGS 25.69 74.31 TOP TEN HOLDINGS OTHER HOLDINGS 7 Palm Beach Gardens Police Officers’ Retirement Fund Yield:2.97%Yield:2.71%Yield:2.89% Corporate Bonds 65.5%Corporate Bonds 37.0%Corporate Bonds 26.0% US Treasuries 5.0%US Treasuries 51.7%US Treasuries 36.3% Gov't Sponsored 15.4%Gov't Sponsored 11.3%Gov't Sponsored 7.9% Mortgage Pools 5.9%Total 100%CMBS 1.7% Other 8.2%ABS 0.5% Total 100%US MBS 27.7% Other 0.1% Total 100% Period Ending 9/30/2016 Fixed Income Sector Allocation Fixed Income Portfolio Corporate Bonds US Treasuries Gov't Sponsored Mortgage Pools Other Barclays Capital Government/Credit Index Corporate Bonds US Treasuries Gov't Sponsored Barclays Capital Aggregate Index Corporate Bonds US Treasuries Gov't Sponsored CMBS ABS US MBS 8 Palm Beach Gardens Police Officers’ Retirement Fund Average Quality:A1 Average Quality:AA2/AA3 Average Quality:AA1/AA2 Aaa 31.5%Aaa 58.2%Aaa 70.5% Aa 14.6%Aa 6.8%Aa 4.9% A 44.6%A 15.4%A 10.8% Baa 4.5%Baa 19.6%Baa 13.8% Other 4.9%Other 0.0%Other 0.0% Total 100%Total 100%Total 100% Period Ending 9/30/2016 Bond Quality Allocation Fixed Income Portfolio Aaa Aa A Baa Other Barclays Capital Government/Credit Index Aaa Aa A Baa Other Barclays Capital Aggregate Index Aaa Aa A Baa Other 9 Palm Beach Gardens Police Officers’ Retirement Fund Average Maturity:9.12 Years Average Maturity:8.99 Years Average Maturity:7.82 Years <3 Yrs 12.0%<3 Yrs 28.1%<3 Yrs 20.7% 3-5 Yrs 21.8%3-5 Yrs 22.1%3-5 Yrs 30.7% 5-7 Yrs 23.9%5-7 Yrs 13.4%5-7 Yrs 21.8% 7-10 Yrs 21.5%7-10 Yrs 13.6%7-10 Yrs 10.7% >10 Yrs 20.8%>10 Yrs 22.9%>10 Yrs 16.1% Total 100%Total 100%Total 100% Period Ending 9/30/2016 Bond Maturity Allocation Fixed Income Portfolio <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Government/Credit Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Aggregate Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs 10 Palm Beach Gardens Police Officers’ Retirement Fund Average Duration:6.02 Average Duration:6.72 Average Duration:5.51 <3 Yrs 20.4%<3 Yrs 29.6%<3 Yrs 40.2% 3-5 Yrs 30.9%3-5 Yrs 23.4%3-5 Yrs 25.6% 5-7 Yrs 18.7%5-7 Yrs 14.7%5-7 Yrs 11.0% 7-10 Yrs 15.3%7-10 Yrs 11.9%7-10 Yrs 8.8% >10 Yrs 14.8%>10 Yrs 20.5%>10 Yrs 14.4% Total 100%Total 100%Total 100% Period Ending 9/30/2016 Duration Allocation Fixed Income Portfolio <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Government/Credit Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Aggregate Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs 0.2% 0.6% 1.0% 1.4% 1.8% 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 Portfolio Duration vs. Index Duration (Ratio)Index Acct 11 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date CASH AND EQUIVALENTS (USD) Cash Account 421,881.81 421,881.81 5.3 0.1 Dividend Accrual 3,303.29 3,303.29 0.0 ? 425,185.10 425,185.10 5.3 0.1 COMMON STOCK (USD) Energy 1335 ONEOK INC 47.34 63,204.91 51.39 68,605.65 0.9 4.8 Materials 216 SHERWIN WILLIAMS CO 275.74 59,559.38 276.66 59,758.56 0.7 1.2 Industrials 100 3M CO 168.82 16,882.19 176.23 17,623.00 0.2 2.5 805 ALASKA AIR GROUP INC 77.90 62,708.34 65.86 53,017.30 0.7 1.7 365 BOEING COMPANY 97.88 35,727.64 131.74 48,085.10 0.6 3.3 430 DANAHER CORP 68.29 29,365.77 78.39 33,707.70 0.4 0.6 2011 DELTA AIR LINES INC 21.74 43,720.44 39.36 79,152.96 1.0 2.1 521 FEDEX CORPORATION 158.12 82,379.45 174.68 91,008.28 1.1 0.9 215 FORTIVE CORP 44.48 9,562.80 50.90 10,943.50 0.1 0.6 932 HONEYWELL INTERNATIONAL INC 72.26 67,345.22 116.59 108,661.88 1.4 2.0 458 HUNTINGTON INGALLS INDUSTRIES INC 172.15 78,845.98 153.42 70,266.36 0.9 1.3 179 LOCKHEED MARTIN CORPORATION 218.86 39,176.38 239.72 42,909.88 0.5 2.8 407 MIDDLEBY CORP 91.89 37,397.93 123.62 50,313.34 0.6 0.0 489 PPG INDUSTRIES INC 95.53 46,712.28 103.36 50,543.04 0.6 1.5 2243 SOUTHWEST AIRLINES CO 42.77 95,930.19 38.89 87,230.27 1.1 1.0 1152 TORO CO 37.81 43,554.01 46.84 53,959.68 0.7 1.3 179 TRANSDIGM GROUP INC 222.22 39,777.36 289.12 51,752.48 0.6 0.0 955 UNITED RENTALS INC 81.15 77,494.62 78.49 74,957.95 0.9 0.0 806,580.60 924,132.72 11.6 1.3 Consumer Discretionary 385 AMAZON.COM INC 633.06 243,728.11 837.31 322,364.35 4.0 0.0 778 BRINKER INTERNATIONAL 49.69 38,655.99 50.43 39,234.54 0.5 2.7 147 CHARTER COMMUNICATIONS INC CL A 265.30 38,998.78 269.97 39,685.59 0.5 0.0 2319 COMCAST CORP CL A 51.06 118,405.45 66.34 153,842.46 1.9 1.7 429 DOLLAR GENERAL CORP 91.56 39,281.08 69.99 30,025.71 0.4 1.4 Period Ending 9/30/2016 Portfolio Holdings - Equity 12 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Equity 1418 GENTEX CORP 16.12 22,865.25 17.56 24,900.08 0.3 2.1 301 HANESBRANDS INC 29.85 8,984.43 25.25 7,600.25 0.1 1.7 556 HASBRO INC 44.55 24,772.50 79.33 44,107.48 0.6 2.6 1444 HOME DEPOT INC 79.26 114,458.55 128.68 185,813.92 2.3 2.1 205 LEAR CORP 115.37 23,650.13 121.22 24,850.10 0.3 1.0 538 LOWE'S COMPANIES INC 55.56 29,891.53 72.21 38,848.98 0.5 1.9 160 MCDONALD'S CORPORATION 123.49 19,758.11 115.36 18,457.60 0.2 3.1 213 MOHAWK IND INC 198.01 42,176.50 200.34 42,672.42 0.5 0.0 320 NETFLIX INC 95.72 30,629.47 98.55 31,536.00 0.4 0.0 782 NEWELL BRANDS INC 49.59 38,779.77 52.66 41,180.12 0.5 1.4 706 NIKE INC CL B 55.44 39,142.48 52.65 37,170.90 0.5 1.2 37 NVR INC 1,589.35 58,805.78 1,639.87 60,675.19 0.8 0.0 31 PRICELINE.COM INC 1,411.87 43,767.89 1,471.49 45,616.19 0.6 0.0 350 SCRIPPS NETWORKS INTERACTIVE 64.56 22,597.12 63.49 22,221.50 0.3 1.6 1282 STARBUCKS CORP 41.58 53,307.93 54.14 69,407.48 0.9 1.5 616 THOR INDUSTRIES INC 52.27 32,200.20 84.70 52,175.20 0.7 1.4 1097 TIME WARNER INC 67.69 74,256.33 79.61 87,332.17 1.1 2.0 79 ULTA SALON COSMETCS & FRAG INC COM 242.93 19,191.50 237.98 18,800.42 0.2 0.0 1590 WALT DISNEY COMPANY 114.87 182,642.69 92.86 147,647.40 1.8 1.5 434 WHIRLPOOL CORP 140.63 61,033.67 162.16 70,377.44 0.9 2.5 1,421,981.23 1,656,543.49 20.7 1.2 Consumer Staples 1164 ALTRIA GROUP INC 65.41 76,134.15 63.23 73,599.72 0.9 3.9 869 COCA COLA COMPANY 44.71 38,852.52 42.32 36,776.08 0.5 3.3 436 CONSTELLATION BRANDS INC 95.30 41,549.68 166.49 72,589.64 0.9 1.0 1554 CVS CORPORATION 65.04 101,075.96 88.99 138,290.46 1.7 1.9 536 INGREDION INC 130.26 69,818.98 133.06 71,320.16 0.9 1.4 534 KRAFT HEINZ COMPANY 76.00 40,585.93 89.51 47,798.34 0.6 2.7 1033 KROGER COMPANY 37.21 38,435.48 29.68 30,659.44 0.4 1.6 387 PEPSICO INC 100.11 38,741.74 108.77 42,093.99 0.5 2.8 577 SPECTRUM BRANDS INC 98.33 56,737.47 137.69 79,447.13 1.0 1.1 886 TYSON FOODS INC-CL A 40.88 36,222.26 74.67 66,157.62 0.8 0.8 538,154.17 658,732.58 8.2 1.9 Health Care 1373 ABBVIE INC 55.38 76,034.71 63.07 86,595.11 1.1 3.6 13 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Equity 218 AMERISOURCEBERGEN CORP 91.58 19,964.24 80.78 17,610.04 0.2 1.7 798 AMGEN INC 162.39 129,591.06 166.81 133,114.38 1.7 2.4 608 BECTON DICKINSON & CO 151.85 92,327.82 179.73 109,275.84 1.4 1.5 199 BIOGEN IDEC INC 299.09 59,518.47 313.03 62,292.97 0.8 0.0 1262 BRISTOL MYERS-SQUIBB CO 71.62 90,381.50 53.92 68,047.04 0.9 2.8 522 CARDINAL HEALTH INC 85.67 44,717.26 77.70 40,559.40 0.5 2.3 373 CELGENE CORP 108.45 40,452.60 104.53 38,989.69 0.5 0.0 647 CENTENE CORP 49.49 32,021.80 66.96 43,323.12 0.5 0.0 533 CHARLES RIVER LABORATORIES 80.58 42,946.95 83.34 44,420.22 0.6 0.0 304 CIGNA CORPORATION 74.81 22,741.34 130.32 39,617.28 0.5 0.0 750 ELI LILLY & CO 78.32 58,737.38 80.26 60,195.00 0.8 2.5 1063 EXPRESS SCRIPTS HOLDING COMPANY 74.77 79,476.79 70.53 74,973.39 0.9 0.0 743 GILEAD SCIENCES INC 87.02 64,656.49 79.12 58,786.16 0.7 2.4 885 HCA HOLDINGS INC 75.64 66,940.98 75.63 66,932.55 0.8 0.0 320 JOHNSON & JOHNSON 125.08 40,025.79 118.13 37,801.60 0.5 2.7 334 MCKESSON HBOC INC 149.03 49,776.64 166.75 55,694.50 0.7 0.7 96 REGENERON PHARMACEUTICALS 430.55 41,332.86 402.02 38,593.92 0.5 0.0 802 UNITEDHEALTH GROUP INC 121.80 97,685.02 140.00 112,280.00 1.4 1.8 799 ZOETIS INC 50.00 39,948.56 52.01 41,555.99 0.5 0.7 1,189,278.25 1,230,658.20 15.4 1.4 Financials 2195 AMTRUST FINANCIAL SERVICES INC 26.00 57,078.53 26.83 58,891.85 0.7 2.5 954 ARTHUR J GALLAGHER & CO 43.43 41,430.27 50.87 48,529.98 0.6 3.0 99 CREDIT ACCEPTANCE 201.55 19,953.46 201.07 19,905.93 0.2 0.0 229 INTERCONTINENTAL EXCHANGE GROUP INC 248.92 57,002.03 269.36 61,683.44 0.8 1.3 1740 LINCOLN NATIONAL CORP 46.41 80,753.23 46.98 81,745.20 1.0 2.1 691 MARCH & McLEANNAN COS 66.39 45,875.21 67.25 46,469.75 0.6 1.8 357 S&P GLOBAL INC 107.96 38,542.15 126.56 45,181.92 0.6 1.1 340,634.88 362,408.07 4.5 1.9 Information Technology 336 ACCENTURE LTD 110.14 37,008.62 122.17 41,049.12 0.5 1.8 799 ACTIVISION BLIZZARD INC 43.26 34,562.42 44.30 35,395.70 0.4 0.5 881 ADOBE SYSTEMS INC 91.97 81,021.96 108.54 95,623.74 1.2 0.0 134 ALPHABET INC CL A 670.37 89,829.81 804.06 107,744.04 1.3 0.0 291 ALPHABET INC CL C 610.17 177,559.81 777.29 226,191.39 2.8 0.0 14 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Equity 3640 APPLE COMPUTER 105.28 383,212.07 113.05 411,502.00 5.1 2.0 795 BOOZ ALLEN HAMILTON HOLDINGS 27.99 22,253.24 31.61 25,129.95 0.3 1.9 938 BROADRIDGE FINANCIAL SOLUTIONS LLC 57.15 53,603.21 67.79 63,587.02 0.8 1.9 1045 CDW CORP 44.53 46,530.96 45.73 47,787.85 0.6 0.9 397 CITRIX SYSTEMS INC 77.90 30,925.15 85.22 33,832.34 0.4 0.0 798 CORELOGIC INC 37.05 29,565.18 39.22 31,297.56 0.4 0.0 501 ELECTRONIC ARTS INC 76.38 38,264.73 85.40 42,785.40 0.5 0.0 509 EXPEDIA INC 119.30 60,723.37 116.72 59,410.48 0.7 0.9 2314 FACEBOOK INC 81.76 189,191.27 128.27 296,816.78 3.7 0.0 612 GLOBAL PAYMENTS INC 68.60 41,983.30 76.76 46,977.12 0.6 0.1 2249 INTEL CORPORATION 33.86 76,160.36 37.75 84,899.75 1.1 2.8 253 INTERNATIONAL BUSINESS MACHINE 151.82 38,410.94 158.85 40,189.05 0.5 3.5 848 MASTERCARD INC 99.50 84,379.48 101.77 86,300.96 1.1 0.7 4604 MICROSOFT CORPORATION 39.54 182,061.82 57.60 265,190.40 3.3 2.7 1877 NVIDIA CORP 47.20 88,597.97 68.52 128,612.04 1.6 0.7 49 PALO ALTO NETWORKS INC 165.33 8,101.30 159.33 7,807.17 0.1 0.0 1486 PAYPAL HOLDINGS INC 27.88 41,436.77 40.97 60,881.42 0.8 0.0 1429 SABRE CORP 26.95 38,514.57 28.18 40,269.22 0.5 1.8 487 SALESFORCE.COM INC 78.41 38,185.82 71.33 34,737.71 0.4 0.0 1099 TWITTER INC 14.29 15,708.45 23.05 25,331.95 0.3 0.0 954 VISA INC 50.78 48,448.49 82.70 78,895.80 1.0 0.7 1,976,241.09 2,418,245.96 30.3 1.1 Telecommunication Services 1129 VERIZON COMMUNICATIONS 47.19 53,276.03 51.98 58,685.42 0.7 4.4 Real Estate 1232 CBRE GROUP INC 32.45 39,977.48 27.98 34,471.36 0.4 0.0 156 SIMON PROPERTY GROUP INC 208.71 32,558.60 207.01 32,293.56 0.4 3.2 72,536.08 66,764.92 0.8 1.5 6,521,446.62 7,504,535.57 93.9 1.4 INTERNATIONAL EQUITY (USD) Information Technology 361 BROADCOM LTD 150.37 54,285.37 172.52 62,279.72 0.8 1.2 54,285.37 62,279.72 0.8 1.2 7,000,917.09 7,992,000.39 100.0 1.3 TOTAL PORTFOLIO 7,000,917.09 7,992,000.39 100.0 1.3 15 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date CASH AND EQUIVALENTS (USD) Cash Account 532,406.14 532,406.14 3.1 0.1 CORPORATE BONDS (USD) 85000 BANK OF NEW YORK MELLON 99.86 84,878.45 100.21 85,175.10 0.5 1.3 A1 1.300%1/25/18 115000 CONS EDISON CO OF NY 99.96 114,949.40 106.75 122,761.35 0.7 5.5 A2 5.850%4/1/18 70000 MORGAN STANLEY 111.59 78,110.20 107.29 75,100.20 0.4 6.2 A3 6.630%4/1/18 170000 TORONTO-DOMINION BANK 99.98 169,969.40 100.01 170,010.20 1.0 1.4 Aa1 1.450%9/6/18 115000 CHEVRON CORP 99.97 114,964.35 108.34 124,591.00 0.7 4.6 Aa2 4.950%3/3/19 135000 AMERICAN EXPRESS CREDIT 99.63 134,504.55 102.10 137,833.65 0.8 2.2 A2 2.250%8/15/19 345000 JPMORGAN CHASE & CO 100.00 345,000.00 101.33 349,588.50 2.0 2.2 A3 2.250%1/23/20 185000 KEY BANK NA 101.11 187,057.20 101.67 188,098.75 1.1 2.2 A3 2.250%3/16/20 100000 JOHN DEERE CAPITAL CORP 99.93 99,935.00 103.06 103,060.00 0.6 2.4 A2 2.450%9/11/20 155000 GEORGE WASHINGTON UNIVERSITY 100.00 155,000.00 111.89 173,432.60 1.0 4.4 A1 4.900%9/15/20 85000 GOLDMAN SACHS GROUP INC 100.58 85,492.15 102.53 87,153.90 0.5 2.7 A3 2.750%9/15/20 125000 BANK OF NY MELLON CORP 99.93 124,918.75 102.66 128,321.25 0.8 2.4 A1 2.450%11/27/20 50000 GENERAL ELECTRIC CAP CORP 103.86 51,930.00 112.48 56,238.00 0.3 4.1 A1 4.630%1/7/21 45000 WELLS FARGO & COMPANY 101.11 45,498.60 103.89 46,750.50 0.3 2.9 A2 3.000%1/22/21 100000 ROYAL BANK OF CANADA 99.93 99,930.00 102.74 102,741.00 0.6 2.2 Aaa 2.300%3/22/21 180000 TORONOTO DOMINION 99.83 179,694.00 101.23 182,210.40 1.1 2.1 Aa1 2.130%4/7/21 200000 LOWE'S COMPANIES INC 107.03 214,054.00 109.17 218,332.00 1.3 3.4 A3 3.750%4/15/21 175000 WESTPAC BANKING CORP 99.82 174,686.75 100.61 176,060.50 1.0 2.1 Aa2 2.100%5/13/21 150000 CATERPILLAR INC 107.24 160,854.00 109.46 164,196.00 1.0 3.6 A2 3.900%5/27/21 165000 TJX COS INC 100.59 165,976.80 104.96 173,184.00 1.0 2.6 A2 2.750%6/15/21 155000 TOTAL CAPITAL INTL SA 100.28 155,434.00 104.50 161,981.20 0.9 2.6 Aa3 2.750%6/19/21 160000 BERKSHIRE HATHAWAY INC 107.65 172,246.40 109.55 175,283.20 1.0 3.4 Aa2 3.750%8/15/21 130000 PRAXAIR INC 103.93 135,115.50 106.27 138,156.20 0.8 2.8 A2 3.000%9/1/21 180000 THOMAS & BETTS CORP 115.91 208,647.00 117.40 211,320.00 1.2 4.8 A2 5.630%11/15/21 180000 ROYAL BANK OF CANADA 99.89 179,798.40 103.05 185,486.40 1.1 2.4 Aa3 2.500%12/31/21 280000 OCCIDENTAL PETROLEUM CORP 99.76 279,324.50 104.98 293,932.80 1.7 3.0 A3 3.130%2/15/22 225000 UNITEDHEALTH GROUP INC 99.49 223,861.50 104.90 236,025.00 1.4 2.7 A3 2.880%3/15/22 200000 TOYOTA MOTOR CREDIT CORP 99.75 199,508.00 104.96 209,930.00 1.2 2.7 Aa3 2.800%7/13/22 165000 PNC FINANCIAL SERVICES 101.59 167,631.75 103.25 170,362.50 1.0 2.8 A3 2.850%11/9/22 360000 MICROSOFT CORP 100.32 361,159.20 102.02 367,268.40 2.2 2.1 Aaa 2.130%11/15/22 250000 CONOCOPHILLIPS COMPANY 98.36 245,895.00 99.38 248,440.00 1.5 2.4 Baa2 2.400%12/15/22 325000 METLIFE INC 99.49 323,342.50 104.44 339,423.50 2.0 2.9 A3 3.050%12/15/22 313000 JPMORGAN CHASE & CO 99.30 310,799.61 104.53 327,172.64 1.9 3.1 A3 3.200%1/25/23 Period Ending 9/30/2016 Portfolio Holdings - Fixed Income 16 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Fixed Income 255000 ST JUDE MEDICAL INC 102.97 262,573.50 103.04 262,764.75 1.5 3.2 Baa2 3.250%4/15/23 120000 ENTERGY MISSISSIPPI INC 97.82 117,379.20 103.20 123,843.60 0.7 3.0 A3 3.100%7/1/23 130000 BANK OF NY MELLON CORP 99.83 129,773.80 99.84 129,788.10 0.8 2.2 A1 2.200%8/16/23 320000 DOMINION GAS HLDGS LLC 101.73 325,548.80 105.03 336,083.20 2.0 3.4 A2 3.550%11/1/23 260000 ROCKWELL COLLINS INC 107.63 279,848.40 109.25 284,052.60 1.7 3.4 A3 3.700%12/15/23 65000 CITIGROUP INC 130.67 84,938.75 131.76 85,643.35 0.5 6.0 Baa1 7.880%5/15/25 100000 QUALCOMM INC 99.64 99,640.00 106.63 106,628.00 0.6 3.2 A1 3.450%5/20/25 65000 EMERSON ELECTRIC CO 99.68 64,794.60 106.24 69,057.95 0.4 3.0 A2 3.150%6/1/25 65000 PRECISION CASTPARTS CORP 99.80 64,867.40 107.64 69,965.35 0.4 3.0 A2 3.250%6/15/25 285000 NORTHERN TRUST CORP 104.64 298,226.85 110.70 315,506.40 1.8 3.6 A2 3.950%10/30/25 100000 PACIFIC GAS & ELECTRIC 99.73 99,734.00 104.45 104,447.00 0.6 2.8 A3 2.950%3/1/26 91000 LOWE'S COS INC 99.54 90,585.04 100.53 91,484.12 0.5 2.5 A3 2.500%4/15/26 72000 TARGET CORP 99.99 71,993.52 102.23 73,608.48 0.4 2.4 A2 2.500%4/15/26 160000 WELLS FARGO & COMPANY 99.66 159,451.20 101.13 161,811.20 0.9 3.0 A2 3.000%4/22/26 260000 WELLS FARGO & CO 105.20 273,520.00 106.57 277,095.00 1.6 3.8 A3 4.100%6/3/26 200000 NATIONAL AUSTRLIA BK/NY 99.27 198,546.00 98.64 197,288.00 1.2 2.5 Aa2 2.500%7/12/26 180000 SUMITOMO MITSUI FINL GRP 100.00 180,000.00 98.85 177,937.20 1.0 2.7 A1 2.630%7/14/26 135000 VERIZON COMMUNICATIONS 99.74 134,655.75 98.62 133,138.35 0.8 2.7 Baa1 2.630%8/15/26 220000 MICROSOFT CORP 99.61 219,148.60 101.84 224,039.20 1.3 3.4 Aaa 3.450%8/8/36 115000 XTO ENERGY INC 133.74 153,801.00 143.34 164,839.85 1.0 4.4 Aaa 6.380%6/15/38 120000 UNITED TECHNOLOGIES CORP 123.90 148,680.00 136.80 164,163.60 1.0 4.5 A3 6.130%7/15/38 65000 SOUTHERN CAL EDISON 140.26 91,172.25 138.68 90,143.30 0.5 4.4 Aa3 6.050%3/15/39 193000 CONSOLIDATED EDISON CO 131.75 254,271.71 131.83 254,426.11 1.5 4.3 A2 5.700%6/15/40 174000 IBM CORP 102.36 178,102.92 105.50 183,564.78 1.1 3.8 Aa3 4.000%6/20/42 160000 GENERAL ELECTRIC CO 115.55 184,880.00 115.79 185,267.20 1.1 3.9 A1 4.500%3/11/44 170000 DOMINION GAS HLDGS LLC 108.64 184,689.70 107.97 183,547.30 1.1 4.3 A2 4.600%12/15/44 35000 MANULIFE FINANCIAL CORP 99.64 34,875.75 119.60 41,860.00 0.2 4.5 NR 5.380%3/4/46 27000 DUKE ENERGY CAROLINAS 99.65 26,904.69 106.60 28,782.54 0.2 3.6 Aa2 3.880%3/15/46 131000 LOWE'S COS INC 99.44 130,271.64 103.52 135,617.75 0.8 3.6 A3 3.700%4/15/46 73000 TARGET CORP 99.42 72,576.60 103.68 75,687.86 0.4 3.5 A2 3.630%4/15/46 75000 APPLE INC 99.73 74,801.25 102.55 76,913.25 0.5 3.8 Aa1 3.850%8/4/46 Accrued Interest 87,448.19 0.5 10,440,419.88 10,826,064.32 63.5 3.2 MUNICIPAL BONDS (USD) 205000 FLORIDA ST HURRICANE CATASTROPHE FUND 98.00 200,900.00 105.01 215,278.70 1.3 2.9 Aa3 3.000%7/1/20 140000 COMMONWEALTH FING AUTH PA REV 100.00 140,000.00 116.23 162,720.60 1.0 4.9 A1 5.650%6/1/24 17 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Fixed Income 190000 NEW YORK NY GO 111.97 212,735.40 111.18 211,249.60 1.2 5.1 Aa2 5.680%10/1/34 Accrued Interest 9,496.21 0.1 553,635.40 598,745.11 3.5 4.2 GOVERNMENT BONDS (USD) 170000 US TREASURY 99.81 169,681.25 100.21 170,351.95 1.0 0.9 Aaa 0.880%6/15/17 75000 US TREASURY NOTE 99.67 74,753.91 100.42 75,313.48 0.4 1.0 Aaa 1.000%5/31/18 100000 US TREASURY NOTE 99.56 99,562.50 100.92 100,917.97 0.6 1.2 Aaa 1.250%10/31/18 280000 US TREASURY NOTE 99.37 278,228.12 101.75 284,910.94 1.7 1.5 Aaa 1.500%11/30/19 184000 US TREASURY 99.73 183,512.17 102.49 188,585.62 1.1 1.7 Aaa 1.750%9/30/22 Accrued Interest 2,604.57 0.0 805,737.95 822,684.53 4.8 1.3 GOVERNMENT SPONSORED BOND (USD) 31000 FFCB 99.96 30,987.60 99.90 30,969.31 0.2 1.0 Aaa 1.030%7/13/18 185000 INTER-AMERICAN DEVEL BK 99.70 184,445.00 99.92 184,857.55 1.1 1.0 Aaa 1.000%5/13/19 340000 FHLMC 100.00 340,000.00 99.76 339,197.60 2.0 1.7 Aaa 1.680%7/28/21 289000 FFCB 99.87 288,624.30 99.76 288,312.18 1.7 1.6 Aaa 1.620%2/10/22 340000 FFCB 100.00 340,000.00 99.76 339,177.20 2.0 2.1 Aaa 2.070%6/29/23 170000 INTL FINANCE CORP 104.67 177,933.90 102.97 175,043.90 1.0 2.1 Aaa 2.130%4/7/26 192000 PROVINCE DE QUEBEC 99.70 191,425.92 102.85 197,466.24 1.2 2.4 Aaa 2.500%4/20/26 350000 MANITOBA (PROVINCE OF)99.23 347,312.00 100.30 351,036.00 2.1 2.1 Aaa 2.130%6/22/26 336000 FANNIE MAE 136.44 458,428.82 148.31 498,328.32 2.9 3.8 Aaa 5.630%7/15/37 75000 FANNIE MAE 146.48 109,860.75 158.40 118,798.83 0.7 3.9 Aaa 6.210%8/6/38 Accrued Interest 14,858.91 0.1 2,469,018.29 2,538,046.04 14.9 2.3 MORTGAGE POOLS (USD) 1371.52 FNCI M #254371 99.56 1,365.52 101.11 1,386.68 0.0 5.4 Aaa 5.500%7/1/17 10190.7 FGCI #E01443 105.41 10,741.64 101.50 10,343.16 0.1 3.4 Aaa 3.500%7/1/18 200 FGCI N #B13455 99.71 199.41 102.95 205.91 0.0 4.4 Aaa 4.500%4/1/19 5114.89 FNCI N #725445 96.09 4,915.02 102.91 5,263.74 0.0 4.4 Aaa 4.500%5/1/19 6028.44 FNCI N #825335 97.31 5,866.43 104.16 6,279.23 0.0 3.8 Aaa 4.000%5/1/20 4135.68 FNCI N #255888 97.31 4,024.53 104.48 4,320.82 0.0 3.8 Aaa 4.000%8/1/20 2158.08 FNCI N #829053 97.00 2,093.34 104.29 2,250.73 0.0 3.8 Aaa 4.000%8/1/20 6939.2 FGCI #G12205 96.48 6,695.24 104.66 7,262.85 0.0 4.3 Aaa 4.500%6/1/21 397.72 FGCI N #G12323 95.88 381.31 105.28 418.73 0.0 4.3 Aaa 4.500%8/1/21 18 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 9/30/2016 Portfolio Holdings - Fixed Income 153120.95 FN AD4398 106.25 162,691.01 106.23 162,655.12 1.0 3.8 Aaa 4.000%6/1/25 199101.14 FG J34676 105.50 210,051.70 105.49 210,036.15 1.2 2.8 Aaa 3.000%7/1/31 17900.08 GNSF M #552509 98.77 17,679.13 116.73 20,894.15 0.1 5.1 Aaa 6.000%4/15/32 6367.15 GNSF M #582153 99.83 6,356.21 115.83 7,374.95 0.0 5.2 Aaa 6.000%6/15/32 44469.25 FGLMC #G02268 102.08 45,393.41 115.59 51,401.94 0.3 5.6 Aaa 6.500%8/1/36 78452.99 GN POOL #782119 107.08 84,005.99 115.93 90,947.24 0.5 5.2 Aaa 6.000%8/15/36 34687.28 FNCL #256394 102.00 35,381.04 115.75 40,151.88 0.2 5.6 Aaa 6.500%9/1/36 33602.31 G2 POOL #4194 106.12 35,660.45 111.19 37,362.88 0.2 4.9 Aaa 5.500%7/20/38 15233.08 G2 POOL #4195 99.89 15,216.40 113.75 17,327.63 0.1 5.3 Aaa 6.000%7/20/38 58263.22 G2 POOL #4447 104.81 61,067.14 109.58 63,846.02 0.4 4.6 Aaa 5.000%5/20/39 152945.38 G2 POOL #4496 109.58 167,594.68 109.46 167,421.42 1.0 4.6 Aaa 5.000%7/20/39 55859.789 GNSF 5.5% POOL #714005 106.16 59,298.66 111.64 62,360.04 0.4 4.9 Aaa 5.500%10/15/39 Accrued Interest 2,918.25 0.0 936,678.25 972,429.51 5.7 4.3 CERTIFICATES OF DEPOSIT (USD) 250000 ALLY BANK 100.00 250,000.00 100.24 250,601.50 1.5 1.2 1.200%9/11/17 85000 AMERICAN EXPR CENTURION 100.00 85,000.00 101.50 86,275.00 0.5 1.9 1.950%12/18/18 250000 GOLDMAN SACHS BANK USA 99.81 249,520.00 101.29 253,235.50 1.5 1.9 1.950%10/28/19 165000 AMERICAN EXPRESS CENTURION 100.00 165,000.00 102.89 169,760.74 1.0 2.3 2.350%10/7/20 Accrued Interest 4,576.56 0.0 749,520.00 764,449.31 4.5 1.8 16,487,415.91 17,054,824.96 100.0 2.9 TOTAL PORTFOLIO 16,487,415.91 17,054,824.96 100.0 2.9 19 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission COWEN & CO 9/13/16 9/16/16 799.00 ACTIVISION BLIZZARD INC 43.26 34,562.42 0.03 23.97 7/5/16 7/8/16 1,294.00 MICROSOFT CORPORATION 50.94 65,922.31 0.03 38.82 100,484.73 0.03 62.79 INSTINET 7/14/16 7/19/16 766.00 MICROSOFT CORPORATION 53.83 41,232.86 0.05 38.30 JNK SEC 8/25/16 8/30/16 1,740.00 LINCOLN NATIONAL CORP 46.41 80,753.23 0.02 34.80 Jones Trading 8/25/16 8/30/16 1,601.00 AMTRUST FINANCIAL SERVICES INC 26.24 42,004.00 0.04 64.04 7/26/16 7/29/16 799.00 ZOETIS INC 50.00 39,948.56 0.04 31.96 81,952.56 0.04 96.00 KNIGHT 7/14/16 7/19/16 55.00 ALPHABET INC CL A 732.15 40,268.04 0.01 0.55 9/13/16 9/16/16 64.00 AMAZON.COM INC 763.88 48,888.57 0.01 0.64 9/13/16 9/16/16 584.00 APPLE COMPUTER 108.18 63,178.76 0.01 5.84 8/2/16 8/5/16 199.00 BIOGEN IDEC INC 299.09 59,518.47 0.01 1.99 9/13/16 9/16/16 240.00 BROADCOM LTD 165.40 39,695.42 0.01 2.40 9/13/16 9/16/16 147.00 CHARTER COMMUNICATIONS INC CL A 265.30 38,998.78 0.01 1.47 7/14/16 7/19/16 458.00 HUNTINGTON INGALLS INDUSTRIES INC 172.15 78,845.98 0.01 4.58 7/5/16 7/8/16 536.00 INGREDION INC 130.26 69,818.98 0.01 5.36 7/6/16 7/11/16 253.00 INTERNATIONAL BUSINESS MACHINE 151.82 38,410.94 0.01 2.53 7/26/16 7/29/16 320.00 JOHNSON & JOHNSON 125.08 40,025.79 0.01 3.20 9/13/16 9/16/16 848.00 MASTERCARD INC 99.50 84,379.48 0.01 8.48 8/25/16 8/30/16 371.00 MICROSOFT CORPORATION 58.23 21,601.99 0.01 3.71 9/13/16 9/16/16 320.00 NETFLIX INC 95.72 30,629.47 0.01 3.20 9/13/16 9/16/16 782.00 NEWELL BRANDS INC 49.59 38,779.77 0.01 7.82 9/13/16 9/16/16 706.00 NIKE INC CL B 55.44 39,142.48 0.01 7.06 9/13/16 9/16/16 31.00 PRICELINE.COM INC 1,411.87 43,767.89 0.01 0.31 8/2/16 8/5/16 96.00 REGENERON PHARMACEUTICALS 430.55 41,332.86 0.01 0.96 7/6/16 7/11/16 487.00 SALESFORCE.COM INC 78.41 38,185.82 0.01 4.87 7/5/16 7/8/16 79.00 ULTA SALON COSMETCS & FRAG INC COM 242.93 19,191.50 0.01 0.79 874,660.99 0.01 65.76 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Purchases - Equity 20 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Purchases - Equity Reynolds Securities 8/2/16 8/5/16 947.00 BRISTOL MYERS-SQUIBB CO 75.03 71,052.85 0.02 18.95 7/5/16 7/8/16 2,810.00 NVIDIA CORP 47.20 132,637.34 0.02 56.20 7/14/16 7/19/16 2,243.00 SOUTHWEST AIRLINES CO 42.77 95,930.19 0.02 44.86 299,620.38 0.02 120.01 strategas 7/6/16 7/11/16 501.00 ELECTRONIC ARTS INC 76.38 38,264.73 0.03 15.03 9/13/16 9/16/16 750.00 ELI LILLY & CO 78.32 58,737.38 0.03 22.50 9/13/16 9/16/16 691.00 MARCH & McLEANNAN COS 66.39 45,875.21 0.03 20.73 7/14/16 7/19/16 1,335.00 ONEOK INC 47.34 63,204.91 0.03 40.05 8/25/16 8/30/16 955.00 UNITED RENTALS INC 81.15 77,494.62 0.03 28.65 283,576.85 0.03 126.96 PURCHASES SUBTOTAL 1,762,281.60 0.02 544.62 0.02 544.62 21 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission COWEN & CO 9/29/16 10/4/16 585.00 DARDEN RESTAURANTS INC 61.02 35,694.46 0.03 17.55 9/29/16 10/4/16 20.00 DARDEN RESTAURANTS INC 61.02 1,220.32 0.03 0.60 7/26/16 7/29/16 591.00 EASTMAN CHEMICAL CO 69.90 41,312.06 0.03 17.73 7/26/16 7/29/16 20.00 EASTMAN CHEMICAL CO 69.90 1,398.04 0.03 0.60 7/14/16 7/19/16 933.00 NVIDIA CORP 53.52 49,933.07 0.03 27.99 9/13/16 9/16/16 640.00 VERIZON COMMUNICATIONS 51.31 32,836.66 0.03 19.20 9/13/16 9/16/16 157.00 VERIZON COMMUNICATIONS 51.31 8,055.24 0.03 4.71 9/13/16 9/16/16 905.00 VERIZON COMMUNICATIONS 51.31 46,433.09 0.03 27.15 216,882.94 0.03 115.53 FBN SECURITIES 9/13/16 9/16/16 4,257.00 DONNELLEY RR & SONS CO COM 15.89 67,655.87 0.02 85.14 7/5/16 7/8/16 3,300.00 JABIL CIRCUIT INC 18.00 59,396.39 0.02 66.00 127,052.26 0.02 151.14 JNK SEC 8/2/16 8/5/16 981.00 MEDNAX INC 67.33 66,046.06 0.02 19.62 8/2/16 8/5/16 123.00 MEDNAX INC 67.33 8,281.00 0.02 2.46 7/14/16 7/19/16 799.00 MYLAN NV 45.46 36,319.51 0.02 15.98 7/14/16 7/19/16 83.00 MYLAN NV 45.46 3,772.87 0.02 1.66 7/14/16 7/19/16 55.00 MYLAN NV 45.46 2,500.09 0.02 1.10 9/13/16 9/16/16 1,316.00 REYNOLDS AMERICAN INC 47.40 62,375.99 0.02 26.32 9/13/16 9/16/16 50.00 REYNOLDS AMERICAN INC 47.40 2,369.91 0.02 1.00 181,665.43 0.02 68.14 Jones Trading 8/2/16 8/5/16 2,600.00 AIR LEASE CORP 27.55 71,632.33 0.04 104.00 7/28/16 8/2/16 1,007.00 AT&T INC 42.53 42,822.74 0.04 40.28 7/28/16 8/2/16 35.00 AT&T INC 42.53 1,488.38 0.04 1.40 7/14/16 7/19/16 2,817.00 DONNELLEY RR & SONS CO COM 18.64 52,517.03 0.04 112.68 7/6/16 7/11/16 1,028.00 INTERNATIONAL PAPER 41.65 42,815.78 0.04 41.12 7/6/16 7/11/16 685.00 INTERNATIONAL PAPER 41.65 28,529.97 0.04 27.40 9/13/16 9/16/16 3,472.00 REGAL ENTERTAINMENT GROUP 21.36 74,155.09 0.04 138.88 7/28/16 8/2/16 329.00 TOPBUILD CORP 37.96 12,488.03 0.04 13.16 7/28/16 8/2/16 34.00 TOPBUILD CORP 37.96 1,290.56 0.04 1.36 7/28/16 8/2/16 90.00 TOPBUILD CORP 37.96 3,416.19 0.04 3.60 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed 22 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed 7/5/16 7/8/16 1,987.00 USG CORP 26.48 52,614.41 0.04 79.48 383,770.51 0.04 563.36 KNIGHT 9/13/16 9/16/16 162.00 AMERCO 326.47 52,888.23 0.01 1.62 9/13/16 9/16/16 39.00 AMERCO 326.47 12,732.36 0.01 0.39 9/13/16 9/16/16 5.00 AMERCO 326.47 1,632.35 0.01 0.05 9/29/16 10/4/16 30.00 AMERICAN AIRLINES GROUP INC 36.31 1,089.27 0.01 0.30 7/5/16 7/8/16 592.00 APPLE COMPUTER 94.82 56,131.74 0.01 5.92 7/5/16 7/8/16 1,012.00 AUTONATION INC 45.66 46,206.91 0.01 10.12 7/5/16 7/8/16 177.00 AUTONATION INC 45.66 8,081.64 0.01 1.77 7/5/16 7/8/16 25.00 AUTONATION INC 45.66 1,141.48 0.01 0.25 7/5/16 7/8/16 130.00 BIOGEN IDEC INC 241.72 31,423.60 0.01 1.30 7/5/16 7/8/16 225.00 BIOGEN IDEC INC 241.72 54,387.00 0.01 2.25 9/13/16 9/16/16 581.00 C. H. ROBINSON WORLDWIDE INC 67.83 39,412.09 0.01 5.81 9/13/16 9/16/16 20.00 C. H. ROBINSON WORLDWIDE INC 67.83 1,356.70 0.01 0.20 7/14/16 7/19/16 359.00 CIGNA CORPORATION 130.00 46,671.64 0.01 3.59 7/14/16 7/19/16 88.00 CIGNA CORPORATION 130.00 11,440.40 0.01 0.88 9/30/16 10/5/16 523.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 48.20 25,207.58 0.01 5.23 9/30/16 10/5/16 900.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 48.20 43,378.24 0.01 9.00 9/30/16 10/5/16 208.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 48.20 10,025.20 0.01 2.08 9/30/16 10/5/16 40.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 48.20 1,927.92 0.01 0.40 9/13/16 9/16/16 135.00 EQUINIX INC 358.82 48,440.72 0.01 1.35 8/2/16 8/5/16 655.00 GILEAD SCIENCES INC 79.82 52,284.36 0.01 6.55 8/2/16 8/5/16 210.00 GILEAD SCIENCES INC 79.82 16,762.93 0.01 2.10 7/14/16 7/19/16 108.00 HASBRO INC 85.45 9,228.67 0.01 1.08 7/14/16 7/19/16 300.00 HASBRO INC 85.45 25,635.19 0.01 3.00 7/14/16 7/19/16 75.00 HASBRO INC 85.45 6,408.80 0.01 0.75 7/14/16 7/19/16 369.00 HONEYWELL INTERNATIONAL INC 119.40 44,058.18 0.01 3.69 9/13/16 9/16/16 500.00 INTERACTIVE BROKERS GROUP 34.92 17,458.51 0.01 5.00 7/14/16 7/19/16 151.00 INTERCONTINENTAL EXCHANGE GROUP INC 261.58 39,498.77 0.01 1.51 7/14/16 7/19/16 2.00 INTERCONTINENTAL EXCHANGE GROUP INC 261.58 523.16 0.01 0.02 7/14/16 7/19/16 477.00 KRAFT HEINZ COMPANY 88.22 42,079.50 0.01 4.77 7/14/16 7/19/16 742.00 VERIZON COMMUNICATIONS 55.84 41,430.22 0.01 7.42 788,943.36 0.01 88.40 Reynolds Securities 23 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed 9/13/16 9/16/16 1,231.00 VISA INC 82.05 101,000.60 0.02 24.62 strategas 7/28/16 8/2/16 993.00 BANK OF NEW YORK MELLON CORP 39.77 39,495.71 0.03 29.79 7/28/16 8/2/16 45.00 BANK OF NEW YORK MELLON CORP 39.77 1,789.84 0.03 1.35 7/5/16 7/8/16 1,623.00 HANESBRANDS INC 24.89 40,389.26 0.03 48.69 7/5/16 7/8/16 239.00 HANESBRANDS INC 24.89 5,947.65 0.03 7.17 7/26/16 7/29/16 445.00 HARRIS CORP DEL 85.56 38,072.30 0.03 13.35 7/26/16 7/29/16 15.00 HARRIS CORP DEL 85.56 1,283.34 0.03 0.45 7/28/16 8/2/16 545.00 REALOGY CORP COM 30.35 16,542.73 0.03 16.35 143,520.83 0.03 117.15 SALES SUBTOTAL 1,942,835.93 0.03 1,128.34 0.03 1,128.34 24 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission BAC 8/8/16 8/15/16 125,000.00 BERKSHIRE HATHAWAY FIN 99.90 124,878.75 0.00 0.00 1.300% Due 08-15-19 7/5/16 7/12/16 200,000.00 NATIONAL AUSTRLIA BK/NY 99.27 198,546.00 0.00 0.00 2.500% Due 07-12-26 7/27/16 8/1/16 135,000.00 VERIZON COMMUNICATIONS 99.74 134,655.75 0.00 0.00 2.625% Due 08-15-26 458,080.50 0.00 0.00 CITI BB 8/12/16 8/15/16 289,000.00 FFCB 99.87 288,624.30 0.00 0.00 1.620% Due 02-10-22 GS 7/28/16 8/4/16 75,000.00 APPLE INC 99.73 74,801.25 0.00 0.00 3.850% Due 08-04-46 8/9/16 8/16/16 130,000.00 BANK OF NY MELLON CORP 99.83 129,773.80 0.00 0.00 2.200% Due 08-16-23 9/21/16 9/26/16 153,120.95 FN AD4398 106.25 162,691.01 0.00 0.00 4.000% Due 06-01-25 9/22/16 9/27/16 520,000.00 GOLDMAN SACHS GROUP INC 100.00 520,000.00 0.00 0.00 2.241% Due 11-15-21 9/14/16 9/21/16 675,000.00 SMALL BUSINESS ADMINISTRATION 100.00 675,000.00 0.00 0.00 2.051% Due 09-10-26 7/7/16 7/14/16 180,000.00 SUMITOMO MITSUI FINL GRP 100.00 180,000.00 0.00 0.00 2.632% Due 07-14-26 1,742,266.06 0.00 0.00 JP MORGAN BB 9/20/16 9/23/16 550,000.00 JP MORGAN CHASE BANK 100.00 550,000.00 0.00 0.00 1.451% Due 09-23-19 MARKET AXESS MARKET AXESS 7/5/16 7/8/16 193,000.00 CONSOLIDATED EDISON CO 131.75 254,271.71 0.00 0.00 5.700% Due 06-15-40 8/29/16 9/1/16 65,000.00 SOUTHERN CAL EDISON 140.26 91,172.25 0.00 0.00 6.050% Due 03-15-39 Purchases - Equity Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 25 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Purchases - Equity Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 345,443.96 0.00 0.00 MISCHLER FINANCIAL GROUP 8/1/16 8/8/16 220,000.00 MICROSOFT CORP 99.61 219,148.60 0.00 0.00 3.450% Due 08-08-36 TD SECS 7/25/16 7/29/16 340,000.00 FHLMC 100.00 340,000.00 0.00 0.00 1.680% Due 07-28-21 7/6/16 7/13/16 170,000.00 INTL FINANCE CORP 104.67 177,933.90 0.00 0.00 2.125% Due 04-07-26 8/29/16 9/6/16 170,000.00 TORONTO-DOMINION BANK 99.98 169,969.40 0.00 0.00 1.450% Due 09-06-18 687,903.30 0.00 0.00 WELLS FARGO 8/26/16 9/19/16 199,101.14 FG J34676 105.50 210,051.70 0.00 0.00 3.000% Due 07-01-31 PURCHASES SUBTOTAL 4,501,518.42 0.00 0.00 0.00 0.00 26 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission 8/8/16 8/8/16 315,000.00 FANNIE MAE 100.00 315,000.00 1.000% Due 08-08-18 7/21/16 7/21/16 181,000.00 FFCB 100.00 181,000.00 2.625% Due 07-21-22 8/10/16 8/10/16 175,000.00 FFCB 100.00 175,000.00 1.900% Due 02-10-22 9/7/16 9/7/16 345,000.00 FHLB 100.00 345,000.00 1.875% Due 06-07-21 9/14/16 9/14/16 182,000.00 FNMA - STEP 100.00 182,000.00 1.500% Due 12-14-21 7/1/16 7/1/16 209,000.00 MASSACHUSETTS ST EDUCTNL FING AUTH 100.00 209,000.00 4.700% Due 01-01-33 1,407,000.00 0.00 0.00 1/0/00 9/14/16 9/14/16 82,000.00 BAXTER INTERNATIONAL INC 110.56 90,660.84 0.00 0.00 4.250% Due 03-15-20 BAC 7/25/16 7/28/16 200,000.00 GOLDMAN SACHS GROUP INC 100.58 201,170.00 0.00 0.00 1.998% Due 04-23-21 7/25/16 7/28/16 45,000.00 GOLDMAN SACHS GROUP INC 100.58 45,263.25 0.00 0.00 1.998% Due 04-23-21 9/20/16 9/23/16 550,000.00 JP MORGAN CHASE BANK 100.06 550,319.00 0.00 0.00 1.451% Due 09-23-19 8/12/16 8/17/16 85,000.00 SOUTHERN CAL EDISON 103.35 87,844.95 0.00 0.00 2.400% Due 02-01-22 8/2/16 8/3/16 175,000.00 US TREASURY N/B 103.71 181,487.30 0.00 0.00 2.500% Due 02-15-45 8/2/16 8/3/16 144,000.00 US TREASURY N/B 103.71 149,338.13 0.00 0.00 2.500% Due 02-15-45 1,215,422.63 0.00 0.00 BANK OF AMERICA BB 7/25/16 7/28/16 100,000.00 PRECISION CASTPARTS CORP 102.74 102,736.00 0.00 0.00 2.250% Due 06-15-20 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income 27 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income BARCLAYS MARKET AXESS 7/15/16 7/20/16 275,000.00 AMERICAN EXPRESS CREDIT 101.99 280,480.75 0.00 0.00 2.250% Due 08-15-19 CANTOR 9/14/16 9/21/16 675,000.00 SMALL BUSINESS ADMINISTRATION 100.31 677,109.38 0.00 0.00 2.051% Due 09-10-26 CITI BB 8/2/16 8/3/16 45,000.00 US TREASURY 114.89 51,700.78 0.00 0.00 3.000% Due 05-15-45 8/2/16 8/3/16 44,000.00 US TREASURY 114.89 50,551.88 0.00 0.00 3.000% Due 05-15-45 8/2/16 8/3/16 48,000.00 US TREASURY 114.89 55,147.50 0.00 0.00 3.000% Due 05-15-45 157,400.16 0.00 0.00 MARKET AXESS MARKET AXESS 9/19/16 9/22/16 150,000.00 CATERPILLAR INC 109.44 164,154.00 0.00 0.00 3.900% Due 05-27-21 8/8/16 8/11/16 160,000.00 GENERAL ELECTRIC CO 117.30 187,683.20 0.00 0.00 4.500% Due 03-11-44 7/28/16 8/2/16 75,000.00 NORTHWESTERN UNIVERSITY 110.85 83,141.25 0.00 0.00 3.688% Due 12-01-38 434,978.45 0.00 0.00 MILLENNIUM MARKET AXESS 8/2/16 8/2/16 40,000.00 GENERAL ELEC CAP CORP 100.74 40,295.60 0.00 0.00 1.600% Due 11-20-17 MORGAN STANLEY 9/22/16 9/27/16 520,000.00 GOLDMAN SACHS GROUP INC 100.20 521,029.60 0.00 0.00 2.241% Due 11-15-21 STIFEL BB 8/10/16 8/15/16 125,000.00 BERKSHIRE HATHAWAY FIN 100.21 125,267.50 0.00 0.00 1.300% Due 08-15-19 28 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income TD SECS 7/28/16 8/2/16 80,000.00 AMERICAN EXPRESS CREDIT 100.07 80,055.20 0.00 0.00 1.125% Due 06-05-17 SALES SUBTOTAL 5,132,436.11 0.00 0.00 0.00 0.00 PRINCIPAL PAYDOWNS Not Classified 7/15/16 7/15/16 525.92 FGCI #E01443 100.00 525.92 3.500% Due 07-01-18 8/15/16 8/15/16 515.62 FGCI #E01443 100.00 515.62 3.500% Due 07-01-18 9/15/16 9/15/16 517.60 FGCI #E01443 100.00 517.60 3.500% Due 07-01-18 7/15/16 7/15/16 256.44 FGCI #G12205 100.00 256.44 4.500% Due 06-01-21 8/15/16 8/15/16 372.99 FGCI #G12205 100.00 372.99 4.500% Due 06-01-21 9/15/16 9/15/16 232.78 FGCI #G12205 100.00 232.78 4.500% Due 06-01-21 7/15/16 7/15/16 15.33 FGCI N #B13455 100.00 15.33 4.500% Due 04-01-19 8/15/16 8/15/16 16.96 FGCI N #B13455 100.00 16.96 4.500% Due 04-01-19 9/15/16 9/15/16 14.07 FGCI N #B13455 100.00 14.07 4.500% Due 04-01-19 7/15/16 7/15/16 13.79 FGCI N #G12323 100.00 13.79 4.500% Due 08-01-21 8/15/16 8/15/16 12.09 FGCI N #G12323 100.00 12.09 4.500% Due 08-01-21 9/15/16 9/15/16 11.67 FGCI N #G12323 100.00 11.67 4.500% Due 08-01-21 7/15/16 7/15/16 208.21 FGLMC #G02268 100.00 208.20 6.500% Due 08-01-36 7/15/16 7/15/16 710.43 FGLMC #G02268 100.00 710.43 6.500% Due 08-01-36 29 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income 8/15/16 8/15/16 326.10 FGLMC #G02268 100.00 326.10 6.500% Due 08-01-36 8/15/16 8/15/16 1,112.69 FGLMC #G02268 100.00 1,112.69 6.500% Due 08-01-36 9/15/16 9/15/16 88.56 FGLMC #G02268 100.00 88.56 6.500% Due 08-01-36 9/15/16 9/15/16 302.18 FGLMC #G02268 100.00 302.18 6.500% Due 08-01-36 7/25/16 7/25/16 186.81 FNCI M #254371 100.00 186.81 5.500% Due 07-01-17 8/25/16 8/25/16 221.45 FNCI M #254371 100.00 221.45 5.500% Due 07-01-17 9/25/16 9/25/16 183.30 FNCI M #254371 100.00 183.30 5.500% Due 07-01-17 7/25/16 7/25/16 544.29 FNCI N #255888 100.00 544.29 4.000% Due 08-01-20 8/25/16 8/25/16 91.58 FNCI N #255888 100.00 91.58 4.000% Due 08-01-20 9/25/16 9/25/16 95.36 FNCI N #255888 100.00 95.36 4.000% Due 08-01-20 7/25/16 7/25/16 8.90 FNCI N #725445 99.99 8.90 4.500% Due 05-01-19 7/25/16 7/25/16 286.74 FNCI N #725445 100.00 286.74 4.500% Due 05-01-19 8/25/16 8/25/16 8.96 FNCI N #725445 99.97 8.96 4.500% Due 05-01-19 8/25/16 8/25/16 288.74 FNCI N #725445 100.00 288.74 4.500% Due 05-01-19 9/25/16 9/25/16 9.34 FNCI N #725445 100.03 9.34 4.500% Due 05-01-19 9/25/16 9/25/16 300.79 FNCI N #725445 100.00 300.79 4.500% Due 05-01-19 7/25/16 7/25/16 134.95 FNCI N #825335 100.00 134.95 4.000% Due 05-01-20 8/25/16 8/25/16 135.45 FNCI N #825335 100.00 135.45 4.000% Due 05-01-20 9/25/16 9/25/16 135.96 FNCI N #825335 100.00 135.96 30 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income 4.000% Due 05-01-20 7/25/16 7/25/16 59.47 FNCI N #829053 100.00 59.47 4.000% Due 08-01-20 8/25/16 8/25/16 54.69 FNCI N #829053 100.00 54.69 4.000% Due 08-01-20 9/25/16 9/25/16 91.10 FNCI N #829053 100.00 91.10 4.000% Due 08-01-20 7/25/16 7/25/16 1,856.56 FNCL #256394 100.00 1,856.56 6.500% Due 09-01-36 8/25/16 8/25/16 557.65 FNCL #256394 100.00 557.65 6.500% Due 09-01-36 9/25/16 9/25/16 1,353.93 FNCL #256394 100.00 1,353.93 6.500% Due 09-01-36 7/20/16 7/20/16 1,146.96 G2 POOL #4194 100.00 1,146.96 5.500% Due 07-20-38 8/20/16 8/20/16 796.57 G2 POOL #4194 100.00 796.57 5.500% Due 07-20-38 9/20/16 9/20/16 1,020.23 G2 POOL #4194 100.00 1,020.23 5.500% Due 07-20-38 7/20/16 7/20/16 426.86 G2 POOL #4195 100.00 426.86 6.000% Due 07-20-38 8/20/16 8/20/16 409.12 G2 POOL #4195 100.00 409.12 6.000% Due 07-20-38 9/20/16 9/20/16 344.56 G2 POOL #4195 100.00 344.56 6.000% Due 07-20-38 7/20/16 7/20/16 1,917.38 G2 POOL #4447 100.00 1,917.38 5.000% Due 05-20-39 8/20/16 8/20/16 1,528.12 G2 POOL #4447 100.00 1,528.12 5.000% Due 05-20-39 9/20/16 9/20/16 1,491.26 G2 POOL #4447 100.00 1,491.26 5.000% Due 05-20-39 7/20/16 7/20/16 3,973.56 G2 POOL #4496 100.00 3,973.56 5.000% Due 07-20-39 8/20/16 8/20/16 4,146.03 G2 POOL #4496 100.00 4,146.03 5.000% Due 07-20-39 9/20/16 9/20/16 4,057.75 G2 POOL #4496 100.00 4,057.75 5.000% Due 07-20-39 31 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 9/30/2016 Sales - Fixed Income 7/15/16 7/15/16 1,582.38 GN POOL #782119 100.00 1,582.38 6.000% Due 08-15-36 8/15/16 8/15/16 1,927.66 GN POOL #782119 100.00 1,927.66 6.000% Due 08-15-36 9/15/16 9/15/16 1,209.11 GN POOL #782119 100.00 1,209.11 6.000% Due 08-15-36 7/15/16 7/15/16 7,440.37 GNSF 5.5% POOL #714005 100.00 7,440.37 5.500% Due 10-15-39 8/15/16 8/15/16 101.87 GNSF 5.5% POOL #714005 100.00 101.87 5.500% Due 10-15-39 9/15/16 9/15/16 136.69 GNSF 5.5% POOL #714005 100.00 136.69 5.500% Due 10-15-39 7/15/16 7/15/16 75.60 GNSF M #552509 100.00 75.60 6.000% Due 04-15-32 8/15/16 8/15/16 75.87 GNSF M #552509 100.00 75.87 6.000% Due 04-15-32 9/15/16 9/15/16 76.40 GNSF M #552509 100.00 76.40 6.000% Due 04-15-32 7/15/16 7/15/16 32.67 GNSF M #582153 100.00 32.67 6.000% Due 06-15-32 8/15/16 8/15/16 28.51 GNSF M #582153 100.00 28.51 6.000% Due 06-15-32 9/15/16 9/15/16 36.92 GNSF M #582153 100.00 36.92 6.000% Due 06-15-32 45,841.89 0.00 0.00 PRINCIPAL PAYDOWNS SUBTOTAL 45,841.89 0.00 0.00 0.00 0.00 32 6 0 7 5 P o p l a r A v e n u e , S u i t e 7 0 3 , M e m p h i s , T N 3 8 1 1 9 T e l : 4 0 7 - 8 3 9 - 8 4 4 0 | F a x : 4 0 7 - 8 4 1 - 2 8 1 4 Palm Beach Gardens Police Investment Performance Review Period Ended September 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 Highland Capital Fixed Income Returns Based Analysis Page 40 17 Oppenheimer International Fixed Income Returns Based Analysis Page 43 18 American Realty Returns Based Analysis Page 45 19 Benchmark History Page 47 20 Dreyfus International Bond A Performance Review Page 49 21 Oppenheimer International Bond A Performance Review Page 51 22 Definitions & Disclosure Pages Page 53 Table Of Contents I a m d e l i g h t e d t o a n n o u n c e t h a t w e w i l l b e r e b r a n d i n g o u r f i r m e a r l y n e x t y e a r t o r e f l e c t o u r e n d u r i n g co m m i t m e n t t o t r u e i n d e p e n d e n c e a n d o u r f i r m ’ s d e s i r e t o a l w a y s p u t o u r c l i e n t s f i r s t . In S e p t e m b e r o f 2 0 0 0 , o u r f o u n d e r , J o e B o g d a h n , s t a r t e d B o g d a h n C o n s u l t i n g , L L C . I n a n i n d u s t r y do m i n a t e d b y b r o k e r a g e f i r m s a n d c o n f l i c t e d s e r v i c e m o d e l s , h e r e a l i z e d e a r l y o n t h a t o n l y t r u e in d e p e n d e n c e w o u l d p r o v i d e t h e p l a t f o r m f o r a n i n s t i t u ti o n a l c o n s u l t i n g f i r m t o o f f e r o b j e c t i v e a d v i c e an d g u i d e c l i e n t s t h r o u g h a n i n c r e a s i n g l y c h a l l e n g i n g w o r l d . J o e s h a r e d h i s v i s i o n w i t h m e s o o n th e r e a f t e r ; I q u i c k l y a p p r e c i a t e d t h e p o w e r o f t h e i n d e p e n d e n t m o d e l a n d o u r s h a r e d d e s i r e t o p u t t h e cl i e n t f i r s t i n e v e r y a s p e c t o f o u r b u s i n e s s d e a l i n g s . As t h e f i r m h a s e v o l v e d a n d g r o w n o v e r t h e p a s t 1 6 y e a r s , a n d a s w e h a v e r e c r u i t e d t a l e n t e d em p l o y e e s a n d b u s i n e s s e s f r o m a r o u n d t h e c o u n t r y , t h i s f o u n d a t i o n r e m a i n s t h e b e d r o c k o f w h a t w e do a n d t h i n k a b o u t e v e r y d a y – a l w a y s p u t t i n g o u r c l i e n t s ’ i n t e r e s t s f i r s t . W e a r e v e r y p r o u d o f t h e se r v i c e c u l t u r e w e c r e a t e d a n d c o n t i n u e t o f o s t e r w i t h i n o u r f i r m . As a n i m p o r t a n t m i l e s t o n e , w e r e c e n t l y t r a n s i t i o n e d t h e m a j o r i t y o w n e r s h i p o f t h e f i r m f r o m o u r fo u n d e r t o t h e n e x t g e n e r a t i o n o f l e a d e r s . W e b e l i e v e t h i s w a s a v e r y i m p o r t a n t s t e p i n s o l i d i f y i n g o u r bu s i n e s s a n d e n s u r i n g w e c a n c o n t i n u e t o s e r v e c l i e n t s w i t h o u t i n t e r r u p t i o n o r d i s r u p t i o n i n o u r c o r e se r v i c i n g p h i l o s o p h y o f “ c l i e n t s f i r s t ” . O u r e m p l o y e e s c o n t i n u e t o e x e m p l i f y a r e l e n t l e s s p u r s u i t o f se r v i n g o u r c l i e n t s w i t h i n a n i n d e p e n d e n t s t r u c t u r e e v e r y d a y . Th e t i m i n g o f t h i s r e b r a n d c o r r e s p o n d s w i t h t h e e x p a n s i o n o f e m p l o y e e o w n e r s h i p a n d p a r t i c i p a t i o n , as w e l l a s o u r c o l l e c t i v e p a s s i o n o f p u t t i n g c l i e n t s f i r s t i n e v e r y t h i n g w e d o . W h i l e t h e c h a n g e w i l l oc c u r e a r l y i n 2 0 1 7 , w e w a n t e d t o s h a r e t h i s e x c i t i n g n e w s w i t h y o u a s e a r l y a s p o s s i b l e . U n t i l t h e n , pl e a s e c o n t a c t y o u r c o n s u l t i n g t e a m t o k e e p y o u u p t o d a t e w i t h d e v e l o p m e n t s a l o n g t h e w a y . We a p p r e c i a t e y o u r b u s i n e s s a n d t h e o p p o r t u n i t y t o s e r v e y o u . H e r e , o u r c l i e n t s w i l l a l w a y s b e f i r s t . Si n c e r e l y , Mi k e W e l k e r Pr e s i d e n t / C E O Firm Update Exciting News Pa g e 1  As s e t c l a s s r e t u r n s w e r e b r o a d l y p o s i t i v e f o r t h e 3 r d q u a r t e r a s g l o b a l ma r k e t s c o n t i n u e d t o r e b o u n d f r o m t h e l a t e J u n e s h o c k c a u s e d b y t h e U. K . ’ s d e c i s i o n t o l e a v e t h e E u r o p e a n U n i o n . I n v e s t m e n t r e t u r n s a l s o be n e f i t e d f r o m c o n t i n u e d e x p a n s i o n a r y g l o b a l c e n t r a l b a n k p o l i c i e s a s w e l l as g e n e r a l i m p r o v e m e n t i n e c o n o m i c d a t a . D o m e s t i c a n d i n t e r n a t i o n a l eq u i t y , p a r t i c u l a r l y s m a l l c a p a n d e m e r g i n g m a r k e t s , e a s i l y o u t p e r f o r m e d bo n d s a s i n v e s t o r s e n t i m e n t s h i f t e d o n c e a g a i n t o a “ r i s k - o n ” p o s t u r e . Re t u r n s f o r t h e t r a i l i n g t w e l v e m o n t h s i l l u s t r a t e d a s i m i l a r p a t t e r n w i t h hi g h e r r i s k a s s e t s g e n e r a l l y o u t p e r f o r m i n g d e f e n s i v e i n v e s t m e n t s .  Eq u i t y m a r k e t i n d i c e s w e r e p o s i t i v e f o r t h e 3 r d q u a r t e r a n d t h e 1 - y e a r pe r i o d . D o m e s t i c s t o c k m a r k e t r e t u r n s r e p r e s e n t e d b y t h e R u s s e l l 3 0 0 0 In d e x h a v e b e e n s o l i d , r e t u r n i n g 4 . 4 % f o r t h e 3 r d q u a r t e r a n d 1 5 . 0 % o v e r th e t r a i l i n g y e a r . W i t h i n d o m e s t i c s t o c k s , t h e s m a l l c a p i n d e x d o u b l e d t h e pe r f o r m a n c e o f o t h e r d o m e s t i c i n d i c e s w i t h a r e t u r n o f 9 . 0 % f o r t h e qu a r t e r . T h i s s t r o n g o u t p e r f o r m a n c e f o r t h e q u a r t e r a l s o e l e v a t e d t h e sm a l l c a p b e n c h m a r k m a r g i n a l l y p a s t t h e r e t u r n o f d o m e s t i c e q u i t y i n d i c e s fo r t h e 1 - y e a r p e r i o d . S i m i l a r t o d o m e s t i c e q u i t y r e s u l t s , i n t e r n a t i o n a l eq u i t y i n d i c e s a l s o y i e l d e d r o b u s t p e r f o r m a n c e f o r t h e 3 r d q u a r t e r . I n U . S . Do l l a r ( U S D ) t e r m s , t h e M S C I A C W I e x U . S . I n d e x ( n e t ) a p p r e c i a t e d 6 . 9 % fo r t h e q u a r t e r a n d 9 . 3 % o v e r t h e l a s t y e a r . T h e E m e r g i n g m a r k e t i n d e x po s t e d i t s t h i r d s t r a i g h t q u a r t e r o f o u t p e r f o r m a n c e r e l a t i v e t o d e v e l o p e d ma r k e t M S C I - E A F E I n d e x ( n e t ) . T h e M S C I E m e r g i n g M a r k e t I n d e x ( n e t ) po s t e d r e t u r n s o f 9 . 0 % a n d 1 6 . 8 % , r e s p e c t i v e , f o r t h e 3 r d q u a r t e r a n d 1 - ye a r p e r i o d v e r s u s r e t u r n s o f 6 . 4 % a n d 6 . 5 % f o r t h e M S C I E A F E I n d e x (n e t ) .  De s p i t e a b r i e f d r o p i n y i e l d s a t t h e s t a r t o f t h e 3 r d q u a r t e r , t h e U . S . Tr e a s u r y y i e l d c u r v e m o v e d h i g h e r a s i n t e r e s t r a t e s r o s e m o d e r a t e l y ac r o s s t h e m a t u r i t y s p e c t r u m . T h i s u p w a r d s h i f t i n t h e y i e l d c u r v e c a u s e d U. S . G o v e r n m e n t b o n d s t o p o s t n e g a t i v e r e t u r n s f o r t h e q u a r t e r . I n co n t r a s t , t h e i n v e s t m e n t g r a d e c o r p o r a t e a n d m o r t g a g e - b a c k e d b o n d co m p o n e n t s o f t h e A g g r e g a t e b e n c h m a r k m a n a g e d t o p o s t p o s i t i v e pe r f o r m a n c e f o r t h e q u a r t e r . I n v e s t m e n t g r a d e c o r p o r a t e i s s u e s b e n e f i t e d fr o m i n c r e a s e d d e m a n d f o r y i e l d , w h i c h l e d t o t i g h t e n i n g c r e d i t s p r e a d s th r o u g h o u t t h e q u a r t e r , p a r t i c u l a r l y i n l o w e r c r e d i t q u a l i t y i s s u e 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 September 30, 2016 0. 1 % 1. 4 % 0. 6 % 1. 0 % -0 . 3 % 0. 5 % 9.0%4.5%4.0%4.4%3.9%9.0%6.4%6.9% -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 Qu a r t e r P e r f o r m a n c e 0. 2 % 8. 6 % 3. 6 % 6. 6 % 4. 0 % 5. 2 % 15.5%14.2%14.9%15.0%15.4%16.8% 6. 5 % 9.3% 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 1 2 . 0 % 1 4 . 0 % 1 6 . 0 % 1 8 . 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 September 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 s t y l e a n d c a p i t a l i z a t i o n sp e c t r u m d u r i n g t h e 3 r d q u a r t e r . T h e e n t h u s i a s m f r o m g e n e r a l l y b e t t e r th a n e x p e c t e d 2 n d q u a r t e r e a r n i n g s a n d p o s i t i v e m a c r o e c o n o m i c d a t a ea r l y i n t h e q u a r t e r w e r e t e m p e r e d b y r i s i n g e x p e c t a t i o n s t h e U . S . F e d e r a l Re s e r v e ( F e d ) w o u l d t i 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 in t e r e s t r a t e s i n S e p t e m b e r . W h i l e t h e F e d u l t i m a t e l y d e c i d e d t o l e a v e sh o r t - t e r m i n t e r e s t r a t e s u n c h a n g e d , F e d C h a i r J a n e t Y e l l e n p r o v i d e d gu i d a n c e t h a t t h e c a s e f o r a r a t e i n c r e a s e h a d b e e n “ s t r e n g t h e n e d ” , in c r e a s i n g t h e o d d s o f a r a t e h i k e b e f o r e t h e e n d o f t h e y e a r , b u t l i k e l y n o t un t i l a f t e r t h e N o v e m b e r e l e c t i o n c y c l e .  Gr o w t h s t o c k s m a r g i n a l l y o u t p a c e d v a l u e 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 3 r d q u a r t e r , r e v e r s i n g t h e t r e n d o f v a l u e o u t p e r f o r m a n c e fo r t h e f i r s t h a l f o f 2 0 1 6 . G r o w t h i n d e x r e s u l t s w e r e l e d b y i n v e s t o r s se e k i n g t h e p o t e n t i a l r e t u r n p r e m i u m a s s o c i a t e d w i t h f a s t e r g r o w i n g co m p a n i e s . G r o w t h i n d e x p e r f o r m a n c e a l s o b e n e f i t e d f r o m l a r g e r w e i g h t s to I n f o r m a t i o n T e c h n o l o g y , t h e b e s t p e r f o r m i n g e c o n o m i c s e c t o r f o r t h e 3 r d qu a r t e r . A s w i t h t h e c o r e i n d i c e s , s m a l l c a p s t y l e b e n c h m a r k s w e r e t h e be s t p e r f o r m e r s 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 , d o u b l i n g t h e i r m i d a n d la r g e c a p c o u n t e r p a r t s . D e s p i t e a s t r o n g 3 r d q u a r t e r f o r g r o w t h i n d i c e s , t h e st y l e - b a s e d p e r f o r m a n c e r e v e r s e s o v e r t h e 1 - y e a r p e r i o d w i t h t h e m o r e de f e n s i v e v a l u e i n d i c e s o u t p a c i n g g r o w t h i n d i c e 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 .  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 ) . E v e n th e m o s t a t t r a c t i v e l y v a l u e d i n d i c e s a r e t r a d i n g m o d e s t l y a b o v e t h e i r hi s t o r i c a l v a l u a t i o n a v e r a g e s . T h e l a r g e a n d m i d c a p g r o w t h i n d i c e s t r a d e at v a l u a t i o n s n e a r 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 in d i c e s r a n g e b e 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 . 9.2%9.0%8.9% 4. 6 % 4. 5 % 4. 4 % 4. 6 % 4. 0 % 3. 5 % 4.9% 4. 4 % 3. 9 % 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 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 12.1%15.5%18.8%11.2%14.2%17.3%13.8%14.9%16.2%13.6%15.0%16.4% 0. 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 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 September 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 p o l a r i z i n g f o r t h e 3 r d q u a r t e r w i t h a pe r f o r m a n c e s p a n o f 1 8 . 3 % b e t w e e n t h e b e s t a n d w o r s t p e r f o r m i n g se c t o r s . S e v e n o f e l e v e n 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 ga i n s f o r t h e p e r i o d b u t o n l y f o u r e c o n o m i c s e c t o r s o u t p a c e d t h e 4 . 0 % re t u r n o f t h e b r o a d R u s s e l l 1 0 0 0 i n d e x . T h e I n f o r m a t i o n T e c h n o l o g y se c t o r w a s t h e q u a r t e r ’ s b e s t p e r f o r m e r . T h e s e c t o r ’ s r e t u r n o f 1 2 . 6 % w a s su p p o r t e d b y a s t r o n g e a r n i n g s s e a s o n . F i n a n c i a l s e c u r i t i e s a l s o pe r f o r m e d n o t a b l y w e l l , r e t u r n i n g 6 . 7 % , a s m a r k e t p a r t i c i p a n t s c o n s i d e r e d th e h e i g h t e n e d p o s s i b i l i t y o f a n e a r - t e r m i n t e r e s t r a t e h i k e . T h e p r o s p e c t of h i g h e r i n t e r e s t r a t e s r e p r e s e n t e d a h e a d w i n d t o m o r e d e f e n s i v e s e c t o r s , re v e r s i n g a t r e n d o f o u t p e r f o r m a n c e i n t h e U t i l i t i e s , R e a l E s t a t e , Te l e c o m m u n i c a t i o n s a n d C o n s u m e r s S t a p l e s s e c t o r s . U t i l i t i e s w e r e t h e wo r s t p e r f o r m e r s , r e t u r n i n g - 5 . 7 % f o r t h e q u a r t e r . S e c t o r p e r f o r m a n c e o v e r th e 1 - y e a r p e r i o d h a s b e e n r e m a r k a b l y s o l i d w i t h a l l e l e v e n e c o n o m i c se c t o r s p o s t i n g p o s i t i v e r e s u l t s , a n d n i n e p o s t i n g d o u b l e - d i g i t r e t u r n s . De s p i t e i t s n e g a t i v e p e r f o r m a n c e f o r t h e 3 r d q u a r t e r , t h e Te l e c o m m u n i c a t i o n s s e c t o r w a s t h e b e s t p e r f o r m e r o v e r t h e 1 - y e a r p e r i o d wi t h a r e t u r n o f 2 6 . 1 % . F i n a n c i a l s t o c k s h a v e s t r u g g l e d r e l a t i v e t o o t h e r se c t o r s o v e r t h e 1 - y e a r p e r i o d a s 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 c o n t i n u e s t o i n h i b i t b a n k p r o f i t s .  Sm 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 g e n e r a l l y p o s i t i v e f o r t h e 3 r d q u a r t e r wi t h n i n e o f e l e v e n s e c t o r s a d v a n c i n g . H o w e v e r , m u c h l i k e l a r g e c a p se c t o r r e s u l t s , t h e p e r f o r m a n c e s p a n b e t w e e n t h e b e s t a n d w o r s t pe r f o r m i n g s e c t o r s w a s a l a r g e 2 2 . 6 % f o r t h e p e r i o d . W h i l e t h e t r e n d s ob s e r v a b l e i n t h e l a r g e c a p i n d e x g e n e r a l l y p e r s i s t e d i n t h e s m a l l c a p be n c h m a r k , 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 o u t p a c e d t h e r e s p e c t i v e l a r g e ca p s e c t o r r e s u l t i n t e n o f e l e v e n s e c t o r s . A l s o s i m i l a r t o l a r g e c a p i s s u e s , hi g h e r y i e l d i n g , d e f e n s i v e s e c t o r s l a g g e d t h e m o r e c y c l i c a l , e c o n o m i c a l l y se n s i t i v e s e c t o r s . O v e r t h e 1 - y e a r p e r i o d , h i g h e r d i v i d e n d p a y i n g R e a l Es t a t e , U t i l i t i e s a n d T e l e c o m m u n i c a t io n s s e c t o r s p o s t e d d o u b l e - d i g i t pe r f o r m a n c e d e s p i t e t h e i r r e l a t i v e l y w e a k 3 r d q u a r t e r r e s u l t s . A l t h o u g h po s i t i v e , 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 E n e r g y s e c t o r s l a g g e d 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 . 3 % a n d 1 . 8 % r e s p e c t i v e l y .  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 In f o r m a t i o n T e c h n o l o g y a n d T e l e c o m m u n i c a t i o n s s e c t o r s w e r e t r a d i n g a t th e l a r g e s t d i s c o u n t t o t h 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 , En e r g y a n d U t i l i t i e s s e 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 th e i r h i s t o r i c a l P / E r a t i o s . 18.6%26.1%18.6%23.3%21.7%18.6%10.3% 5. 9 % 17.2%15.5%9.0% -5 . 7 % -4 . 7 % -1 . 6 % 4. 1 % 12.6% 4. 1 % 1. 6 % 6. 7 % 2. 7 % -2 . 6 % 3. 5 % -1 0 . 0 % - 5 . 0 % 0 . 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 2 5 . 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 . 7 % ) Re a l E s t a t e ( 4 . 1 % ) 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 . 9 % ) In d u s t r i a l s ( 1 0 . 0 % ) He a l t h C a r e ( 1 4 . 5 % ) Fi n a n c i a l s ( 1 2 . 9 % ) En e r g y ( 6 . 8 % ) Co n s u m e r S t a p l e s ( 9 . 6 % ) Co n s u m e r D i s c ( 1 2 . 8 % ) Ru s s e l l 1 0 0 0 Quarter 1-Year 23.8%14.5%24.1%37.1%25.6%21.0% 8. 1 % 12.0% 1. 8 % 19.6% 1. 3 % -5 . 1 % -6 . 3 % 2. 1 % 12.3%16.3% 9. 2 % 13.7% 10 . 3 % 10 . 5 % 2. 2 % 3. 9 % -1 0 . 0 % 0 . 0 % 1 0 . 0 % 2 0 . 0 % 3 0 . 0 % 4 0 . 0 % Ut i l i t i e s ( 4 . 1 % ) Te l e c o m S e r v i c e s ( 0 . 8 % ) Re a l E s t a t e ( 8 . 6 % ) Ma t e r i a l s ( 4 . 6 % ) In f o T e c h n o l o g y ( 1 7 . 5 % ) In d u s t r i a l s ( 1 4 . 1 % ) He a l t h C a r e ( 1 3 . 6 % ) Fi n a n c i a l s ( 1 7 . 3 % ) En e r g y ( 3 . 0 % ) Co n s u m e r S t a p l e s ( 3 . 1 % ) Co n s u m e r D i s c ( 1 3 . 3 % ) 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 September 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 . 9 6 % 1 8 . 9 % 4 . 7 % I n f o r m a t i o n T e c h n o l o g y M i c ro s e m i C o r p 0 . 2 7 % 2 8 . 5 % 2 7 . 9 % Information Technology Mi c r o s o f t C o r p 2 . 0 8 % 1 3 . 3 % 3 3 . 7 % I n f o r m a t i on T e c h n o l o g y A d v a n c e d M i c r o D e v i c e s I n c 0 .2 6 % 3 4 . 4 % 3 0 1 . 7 % I n f o r m a t i o n T e c h n o l o g y Ex x o n M o b i l C o r p 1 . 7 4 % - 6 . 1 % 2 1 . 6 % E n e r g y G r a m er c y P p t y T r 0 . 2 3 % 5 . 7 % 5 4 . 8 % R e a l E s t a t e Am a z o n . c o m I n c 1 . 5 6 % 1 7 . 0 % 6 3 . 6% C o n s u m e r D i s c r e t i o n a r y C u r t i s s - W r ig h t C o r p 0 . 2 3 % 8 . 1% 4 6 . 7 % I n d u s t r i a l s Jo h n s o n & J o h n s o n 1 . 5 5 % - 2 . 0 % 3 0 . 2% H e a l t h C a r e I d a c o r p I n c 0 . 2 3 % - 3 . 2 % 2 4 . 4 % U t i l i t i e s Fa c e b o o k I n c A 1 . 3 8 % 1 2 . 2 % 4 2 . 7 % I n f o r m a t io n T e c h n o l o g y H e a l t h c a r e R e a l t y T r us t I n c 0 . 2 2 % - 1 . 8 % 4 2 . 7 % R e a l E s t a t e Be r k s h i r e H a t h a w a y I n c B 1 . 3 1 % - 0 . 2 % 1 0 . 8 % F i n a n c i a l s A s pe n T e c h n o l o g y I n c 0 . 2 2 % 1 6 . 3 % 2 3 . 4% Information Technology Ge n e r a l E l e c t r i c C o 1 . 3 0 % - 5 . 2 % 2 1 . 1% I n d u s t r i a l s F a i r I s a a c C o r p 0 . 2 2 % 10 . 3 % 4 7 . 6 % I n f o r m a t i o n T e c h n o l o g y AT & T I n c 1 . 2 0 % - 5 . 0 % 3 1 . 2 % 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 C e p h e i d 0 . 2 2 % 7 1 . 3 % 1 6 . 6 % H e a l t h C a r e JP M o r g a n C h a s e & C o 1 . 1 6 % 8 . 0 % 1 2 . 5 % Fi n a n c i a l s P o r t l a n d G e n e r a l E l e c t r ic C o 0 . 2 2 % - 2 . 8 % 1 8 . 8 % 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 Pu m a B i o t e c h n o l o g y I n c 0 . 0 0 % 1 2 5 . 1 % -1 1 . 0 % H e a l t h C a r e S e v e n t y S e v e n En e r g y I n c 0 . 0 0 % 2 0 3 6 6 . 9 % 1 2 6 5 . 9 % E n e r g y Th e C h e m o u r s C o 0 . 0 0 % 9 4 . 7 % 1 5 1 . 1 % M a t e r i a l s S a r e p t a T h e r a p e u t i c s I n c 0 . 1 5 % 22 2 . 0 % 9 1 . 2 % H e a l t h C a r e Ge n w o r t h F i n a n c i a l I n c 0 . 0 0 % 9 2 . 2 % 7. 4 % F i n a n c i a l s T o b i r a T h e r a p e u t i c s In c 0 . 0 2 % 2 1 6 . 4 % 3 1 1 . 4 % H e a l t h C a r e Lu m e n t u m H o l d i n g s I n c 0 . 0 0 % 7 2 . 6 % 1 4 6 . 4 % In f o r m a t i o n T e c h n o l o g y C l a y t o n W i l l i a ms E n e r g y I n c 0 . 0 3 % 2 1 1 . 1 % 1 2 0 . 1 % E n e r g y Co p a H o l d i n g s S A C l a s s A 0 . 0 1 % 6 9 . 3% 1 1 8 . 4 % I n d u s t r i a l s U l t r a P e t r o l eu m C o r p 0 . 0 0 % 1 8 4 . 6 % - 2 1 . 6 % E n e r g y Gr o u p o n I n c 0 . 0 1 % 5 8 . 5 % 5 8 . 0 % C o n s u m e r D i s c r e t i o n a r y C l o u d P e a k E n e r gy I n c 0 . 0 0 % 1 6 4 . 1 % 1 0 6 . 8 % E n e r g y Io n i s P h a r m a c e u t i c a l s I n c 0 .0 2 % 5 7 . 3 % - 9 . 4 % H e a l t h C a r e C l o v i s O n c o lo g y I n c 0 . 0 7 % 1 6 2 . 8 % - 6 0 . 8 % H e a l t h C a r e bl u e b i r d b i o I n c 0 . 0 0 % 5 6 . 6 % - 2 0 . 8 % H e a l t h C a r e A c a c i a Co m m u n i c a t i o n s I n c 0 . 0 3 % 1 5 8 . 6 % N/A Information Technology Go P r o I n c A 0 . 0 0 % 5 4 . 3 % - 4 6 . 6 % C o n s u m e r D i s c r e t i o n a ry A b e o n a T h e r a p e u t i c s I n c 0 . 0 0 % 1 5 4 . 2 % 4 8 . 1 % H e a l t h C a r e Pe n s k e A u t o m o t i v e G r o u p I n c 0 . 0 1 % 5 4 . 2 % 2 . 3 % C o n s u m e r D i sc r e t i o n a r y H e a l t h w a y s I n c 0 . 0 5 % 1 2 9 . 1 % 1 3 7 . 9 % H e a l t h C a r e 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 % - 6 4 . 5 % - 9 9 . 3 % I n f o r m a t i o n T e c h n o l og y H o r s e h e a d H o l d i n g C o r p 0 . 0 0 % - 9 3 . 8 % - 9 9 . 4 % M a t e r i a l s Co r r e c t i o n s C o r p o f A m e r i c a 0 .0 1 % - 5 8 . 8 % - 4 8 . 6 % R e a l E s t a t e F a i r w a y G r o u p H o l d i n gs C o r p A 0 . 0 0 % - 8 9 . 2 % -99.3% Consumer Staples Su n P o w e r C o r p 0 . 0 0 % - 4 2 . 4 % - 5 5 . 5 % I n f o rm a t i o n T e c h n o l o g y K e y E n e r g y S e r v ic e s I n c 0 . 0 0 % - 8 2 . 1 % - 9 1 . 2 % E n e r g y Qu o r u m H e a l t h C o r p 0 . 0 0 % - 4 1 . 5 % N / A H e a l t h C a r e V i o l i n Me m o r y I n c 0 . 0 0 % - 8 0 . 2 % - 8 6 . 8% Information Technology Th e H a i n C e l e s t i a l G r o u p I n c 0 . 0 2 % - 2 8 . 5 % -3 1 . 0 % C o n s u m e r S t a p l e s C o d e R e b e l C o r p 0 . 00 % - 8 0 . 0 % - 9 9 . 9 % I n f o r m a t i o n T e c h n o l o g y Di a m o n d O f f s h o r e D r i l l i n g I n c 0 . 0 1 % - 2 7 . 6 % 2 . 4 % E ne r g y C y t R x C o r p 0 . 0 0 % - 7 3 . 6 % - 7 5 . 2 % H e a l t h C a r e Br i s t o l - M y e r s S q u i b b C o m p a n y 0 . 4 3 % - 2 6 . 7 % - 7 . 4 % H e a l t h C a r e To k a i P h a r m a c e u t i c a l s I n c 0 . 00 % - 7 2 . 2 % - 8 5 . 2 % H e a l t h C a r e Tr a c t o r S u p p l y C o 0 . 0 4 % - 2 5 . 9 % - 1 9 . 3 % Co n s u m e r D i s c r e t i o n a r y N o v a v a x I n c 0 . 0 3 % - 7 1 . 4 % - 7 0 . 6 % H e a l t h C a r e Do l l a r G e n e r a l C o r p 0 . 0 9 % - 2 5 . 3 % - 2 . 2 % C o n s u m e r D i s c r e t i o n a r y 6 D G l ob a l T e c h n o l o g i e s I n c 0 . 0 0 % - 6 6 . 7 % -98.3% Information Technology NR G E n e r g y I n c 0 . 0 2 % - 2 5 . 1 % - 2 2 . 2 % Ut i l i t i e s I n t r a - C e l l u l a r T h e r a p i e s In c 0 . 0 3 % - 6 0 . 7 % - 6 1 . 9 % 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 b e n c h m a r k s , t h e 3 r d q u a r t e r w a s l a r g e l y p o s i t i v e fo r i n t e r n a t i o n a l e q u i t i e s w i t h d e v e l o p e d a n d e m e r g i n g m a r k e t i n d i c e s po s t i n g s o l i d r e t u r n s i n b o t h U S D a n d l o c a l c u r r e n c y t e r m s . T h e c u r r e n c y im 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 a n d t h e p e r f o r m a n c e di f f e r e n t i a l w a s m o r e m u t e d t h a n r e c e n t q u a r t e r s . S i m i l a r t o t h e 3 r d q u a r t e r , re s u l t s f o r t h e 1 - y e a r p e r i o d w e r e a l s o b r o a d l y p o s i 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 .  Eu r o p e a n s t o c k s b o u n c e d b a c k d u r i n g t h e 3 r d q u a r t e r a s m a r k e t s r e c o v e r e d fr o m t h e i m m e d i a t e n e g a t i v e a s s e s s m e n t o f t h e U . K . ’ s v o t e t o l e a v e t h e Eu r o p e a n U n i o n . A l t h o u g h t h e i m p a c t o f t h e r e f e r e n d u m w i l l l i k e l y h a v e ec o n o m i c c o n s e q u e n c e s , t h e y a r e n o t n e a r - t e r m i n n a t u r e . W h i l e E u r o p e a n Ce n t r a l B a n k ( E C B ) P r e s i d e n t M a r i o D r a g h i s i g n a l e d t h a t f u r t h e r m o n e t a r y po l i c y s t i m u l u s w o u l d b e a v a i l a b l e i f n e e d e d , t h e E C B , s u p p o r t e d b y ge 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 i n t h e r e g i o n , l e f t m o n e t a r y p o l i c y un c h a n g e d t h r o u g h t h e q u a r t e r . U . K . e c o n o m i c d a t a a l s o s u r p r i s e d t o t h e up s i d e t h r o u g h t h e q u a r t e r a s t h e B a n k o f E n g l a n d ( B o E ) l a u n c h e d a s e r i e s of e x p a n s i o n a r y m o n e t a r y p o l i c y m e a s u r e s a n d T h e r e s a M a y b e c a m e p r i m e mi n i s t e r f o l l o w i n g t h e r e s i g n a t i o n o f D a v i d C a m e r o n .  Ja p a n e s e e q u i t i e s r o s e s h a r p l y t h r o u g h t h e q u a r t e r , g a i n i n g 8 . 6 % , a s el e c t i o n s w i t h i n J a p a n ’ s H o u s e o f C o u n c i l o r s s t r e n g t h e n e d t h e p o s i t i o n o f Pr i m e M i n i s t e r A b e . T h e r e s u l t o f t h e e l e c t i o n s m a d e w a y f o r t h e an n o u n c e m e n t o f a $ 2 8 t r i l l i o n Y e n f i s c a l s t i m u l u s p a c k a g e . I n a d d i t i o n , t h e Ba n k o f J a p a n ( B o J ) i n c r e a s e d t h e s c a l e o f i t s E T F p u r c h a s i n g p r o g r a m f r o m $3 . 3 t r i l l i o n Y e n t o $ 6 t r i l l i o n Y e n a n n u a ll y , a n d w h i l e i t l e f t i n t e r e s t r a t e s un c h a n g e d , t h e B o J p l a c e d a 0 . 0 % c e i l i n g o n 1 0 - y e a r g o v e r n m e n t b o n d yi e l d s a n d p l a n n e d t o r e d u c e o n g o i n g p u r c h a s e s o f u l t r a - l o n g G o v e r n m e n t bo n d s i n a n e f f o r t t o i n f l u e n c e t h e s h a p e o f t h e i r y i e l d c u r v e .  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 p o s i t i v e t h r o u g h o u t t h e q u a r t e r , ou t p e r f o r m i n g t h e i r d e v e l o p e d m a r k e t c o u n t e r p a r t s . A s i a n m a r k e t s , l e d b y Ch i n a , S o u t h K o r e a , a n d T a i w a n w e r e t h e b e s t p e r f o r m e r s f o r t h e 3 r d q u a r t e r in b o t h U S D a n d l o c a l c u r r e n c y t e r m s . O v e r t h e t r a i l i n g 1 - y e a r p e r i o d , L a t i n Am e r i c a w a s t h e b e s t p e r f o r m i n g r e g i o n r e t u r n i n g 2 8 . 7 % i n U S D t e r m s a n d 20 . 2 % o n a 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 b e n e f i t e d f r o m p o l i t i c a l ta 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 . R u s s i a , E g y p t , a n d In d o n e s i a 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 o v e r t h e p e r i o d . E m e r g i n g Eu 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 A s i a a n d La t i n A m e r i c a . 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 September 30, 2016 7.5%8.8% 2. 4 % 7.6%7.0% 5. 5 % 6.0%6.0%6.4% 5. 4 % 10.5% 5. 7 % 9.0%8.5% 5. 3 % 6.4%6.3%6.9% 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 1 2 . 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 20.2% 13 . 4 % 6. 6 % 13 . 0 % 0. 8 % 6. 7 % 4. 6 % 5. 2 % 6. 9 % 28.7%16.9% 8. 1 % 16.8%14.7% 2. 4 % 6. 5 % 7. 2 % 9. 3 % 0. 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 2 5 . 0 % 3 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 September 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 . 8 % 1 6 . 7 % 8 . 6 % 1 2 . 1 % Un i t e d K i n g d o m 1 8 . 9 % 13 . 2 % 4 . 0 % 1 . 5 % Fr a n c e 9 . 7 % 6 . 8 % 6 . 4 % 3 . 6 % Ge r m a n y 9 . 0 % 6 . 3 % 1 0 . 0 % 9 . 1 % Sw i t z e r l a n d 9 . 0 % 6 . 3 % 2 . 6 % 1 . 0 % Au s t r a l i a 7 . 3 % 5 . 1 % 7 . 9 % 2 1 . 7 % Ho n g K o n g 3 . 5 % 2 . 5 % 1 1 . 9 % 1 9 . 1 % Ne t h e r l a n d s 3 . 4 % 2. 4 % 9 . 1 % 1 0 . 4 % Sp a i n 3 . 0 % 2 . 1 % 9 . 3 % - 5 . 7 % Sw e d e n 2 . 8 % 2 . 0 % 7 . 5 % 3 . 9 % It a l y 1 . 9 % 1 . 3 % 2 . 2 % - 2 1 . 0 % De n m a r k 1 . 8 % 1 . 2 % - 6 . 3 % - 1 . 5 % Be l g i u m 1 . 4 % 1 . 0 % 5 . 0 % 1 9 . 1 % Si n g a p o r e 1 . 3 % 0 . 9 % - 0 . 2 % 9 . 7 % Fi n l a n d 1 . 0 % 0 . 7 % 7 . 4 % 9 . 3 % Is r a e l 0 . 7 % 0 . 5 % - 2 . 0 % - 7 . 7 % No r w a y 0 . 6 % 0 . 5 % 6 . 3 % 1 0 . 1 % Ir e l a n d 0 . 5 % 0 . 3 % 7 . 4 % - 0 . 7 % Ne w Z e a l a n d 0 . 2 % 0 . 1 % 1 2 . 4 % 5 6 . 9 % Au s t r i a 0 . 2 % 0 . 1 % 1 6 . 7 % 1 1 . 6 % Po r t u g a l 0 . 2 % 0 . 1 % 6 . 3 % 1 1 . 2 % To t a l E A F E C o u n t r i e s 1 0 0 . 0 % 7 0 . 1 % 6 . 4 % 6 . 5 % Ca n a d a 6 . 7 % 4 . 9 % 1 4 . 5 % To t a l D e v e l o p e d C o u n t r i e s 7 6 . 9 % 6 . 3 % 7 . 2 % Ch i n a 6 . 2 % 1 3 . 9 % 1 3 . 0 % Ko r e a 3 . 4 % 1 1 . 0 % 2 1 . 5 % Ta i w a n 2 . 8 % 1 1 . 7 % 2 2 . 7 % In d i a 2 . 0 % 5 . 9 % 6 . 1 % Br a z i l 1 . 7 % 1 1 . 3 % 5 7 . 6 % So u t h A f r i c a 1 . 7 % 6 . 3 % 9 . 9 % Me x i c o 0 . 9 % - 2 . 2 % - 2 . 5 % Ru s s i a 0 . 9 % 8 . 4 % 2 5 . 2 % In d o n e s i a 0 . 6 % 9 . 5 % 5 3 . 2 % Ma l a y s i a 0 . 6 % - 1 . 5 % 1 3 . 2 % Th a i l a n d 0 . 5 % 7 . 2 % 2 0 . 9 % Ph i l i p p i n e s 0 . 3 % - 5 . 3 % 6 . 6 % Tu r k e y 0 . 3 % - 5 . 3 % 5 . 8 % Ch i l e 0 . 3 % - 1 . 7 % 1 1 . 8 % Po l a n d 0 . 3 % 3 . 1 % - 1 5 . 7 % Qa t a r 0 . 2 % 6 . 9 % - 5 . 2 % Un i t e d A r a b E m i r a t es 0 . 2 % 6 . 1 % 0 . 7 % Co l o m b i a 0 . 1 % 2 . 8 % 1 7 . 3 % Pe r u 0 . 1 % 1 . 1 % 3 9 . 5 % Gr e e c e 0 . 1 % 1 . 0 % - 3 8 . 3 % Hu n g a r y 0 . 1 % 1 0 . 8 % 3 8 . 0 % Eg y p t 0 . 0 % 2 1 . 6 % 6 . 4 % Cz e c h R e p u b l i c 0 . 0 % - 0 . 4 % - 1 2 . 8 % To t a l E m e r g i n g C o u n t r i e s 2 3 . 2 % 9 . 0 % 1 6 . 8 % To t a l A C W I x U S C o u n t r i e s 1 0 0 . 0 % 6 . 9 % 9 . 3 % 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 na r y 1 2 . 2 % 1 0 . 9 % 2 . 6 % Co n s u m e r S t a p l es 1 2 . 8 % 1 . 9 % 1 3 . 9 % En e r g y 4 . 8 % - 1 . 5 % 1 5 . 6 % Fi n a n c i a l s 1 9 . 2 % 1 1 . 0 % - 6 . 7 % He a l t h C a r e 1 1 . 4 % - 2 . 4 % 0 . 8 % In d u s t r i a l s 1 4 . 1 % 8 . 6 % 1 5 . 8 % In f o r m a t i o n T e c h n o l o g y 5 . 5 % 1 4 . 8 % 1 8 . 1 % Ma t e r i a l s 7 . 5 % 1 5 . 8 % 2 1 . 6 % Re a l E s t a t e 4 . 0 % 4 . 9 % 1 2 . 4 % Te l e c o m m u n i c a t i o n S e r v i c e s 4 . 8 % - 0 . 4 % 6 . 0 % Ut i l i t i e s 3 . 7 % 0 . 1 % 4 . 3 % To t a l 1 0 0 . 0 % 6 . 4 % 6 . 5 % 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 na r y 1 1 . 4 % 5 . 8 % 4 . 8 % Co n s u m e r S t a p l e s 1 1 . 1 % - 0 . 7 % 1 3 . 2 % En e r g y 6 . 6 % 2 . 1 % 2 0 . 5 % Fi n a n c i a l s 2 1 . 6 % 1 0 . 1 % 0 . 1 % He a l t h C a r e 8 . 6 % 0 . 1 % - 2 . 2 % In d u s t r i a l s 1 1 . 7 % 5 . 8 % 1 3 . 8 % In f o r m a t i o n T e c h n o l o g y 9 . 6 % 1 5 . 6 % 2 6 . 2 % Ma t e r i a l s 7 . 5 % 9 . 1 % 2 4 . 8 % Re a l E s t a t e 3 . 5 % 4 . 9 % 1 3 . 0 % Te l e c o m m u n i c a t i o n S e r v i c e s 4 . 9 % 2 . 0 % 5 . 3 % Ut i l i t i e s 3 . 4 % 2 . 6 % 5 . 5 % To t a l 1 0 0 . 0 % 6 . 9 % 9 . 3 % 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 na r y 1 0 . 6 % 9 . 6 % 1 3 . 9 % Co n s u m e r S t a p l es 7 . 9 % 1 . 2 % 1 0 . 1 % En e r g y 7 . 3 % 8 . 0 % 2 6 . 2 % Fi n a n c i a l s 2 3 . 7 % 1 1 . 5 % 1 4 . 6 % He a l t h C a r e 2 . 6 % 2 . 3 % 4 . 5 % In d u s t r i a l s 5 . 9 % 4 . 9 % 1 . 2 % In f o r m a t i o n T e c h n o l o g y 2 3 . 9 % 1 6 . 1 % 3 2 . 7 % Ma t e r i a l s 6 . 4 % 1 0 . 2 % 2 3 . 7 % Re a l E s t a t e 2 . 7 % 7 . 7 % 1 5 . 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 . 1 % 2 . 2 % 2 . 2 % Ut i l i t i e s 2 . 9 % 0 . 9 % 9 . 3 % To t a l 1 0 0 . 0 % 9 . 0 % 1 6 . 8 % 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 September 30, 2016  De s p i t e h i s t o r i c a l l y l o w y i e l d s , f i x e d i nc 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 20 1 6 p e r f o r m a n c e t h r o u g h t h e 3 r d q u a r t e r o f t h e y e a r . T h e i n i t i a l do w n w a r d y i e l d s h o c k c a u s e d b y J u n e ’ s “ B r e x i t ” v o t e w o r e o f f q u i c k l y a n d bo n d m a r k e t v o l a t i l i t y r e m a i n e d r e l a t i v e l y l o w t h r o u g h t h e r e m a i n d e r o f t h e qu a r t e r . I m p r o v i n g e c o n o m i c d a t a i n t h e U . S . l e d i n v e s t o r s t o p r i c e i n gr e a t e r l i k e l i h o o d o f a r a t e i n c r e a s e a t t h e F e d ’ s S e p t e m b e r m e e t i n g . T h i s ex p e c t a t i o n c a u s e d i n t e r e s t r a t e s t o c r e e p u p a c r o s s t h e y i e l d c u r v e , es p e c i a l l y a t t h e s h o r t e n d o f t h e c u r v e . W h i l e F e d C h a i r J a n e t Y e l l e n re l a y e d a g e n e r a l l y p o s i t i v e v i e w o f t h e U . S . e c o n o m y , t h e F e d e r a l O p e n Ma r k e t C o m m i t t e e v o t e d t o k e e p i n t e r e s t r a t e s s t a b l e f o r t h e t i m e b e i n g . Ho w e v e r , t h r e e o f t h e t e n v o t i n g c o m m i t t e e m e m b e r s w e r e i n f a v o r o f a ra t e i n c r e a s e . A l t h o u g h a n i n t e r e s t r a t e h i k e i s n o t l i k e l y u n t i l a f t e r t h e No v e m b e r e l e c t i o n s , t h e r e i s c e r t a i n l y a r e a s o n a b l e e x p e c t a t i o n f o r a r a t e hi k e b e f o r e y e a r e n d .  Th e y i e l d c u r v e r o s e o v e r t h e 3 r d q u a r t e r w i t h s h o r t - t e r m i n t e r e s t r a t e s ri s i n g t o a g r e a t e r d e g r e e t h a n l o n g - t e r m i n t e r e s t r a t e s . T h i s c u r v e “f l a t t e n i n g ” r e p r e s e n t e d a h e a d w i n d t o s h o r t e r d u r a t i o n m a r k e t i n d i c e s . De s p i t e r i s i n g i n t e r e s t r a t e 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 ga i n s f o r t h e 3 r d q u a r t e r . 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 b e n e f i t e d f r o m ti g h t e n i n g 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 a s i n v e s t o r s b e c a m e m o r e co m f o r t a b l e t a k i n g o n r i s k f o r t h e p r o s p e c t o f g r e a t e r r e t u r n . I n c o n t r a s t , th e B l o o m b e r g B a r c l a y s U . S . T r e a s u r y I n d e x f i n i s h e d t h e q u a r t e r i n t h e r e d du e t o i t s r e l a t i v e l y h i g h d u r a t i o n a n d l o w y i e l d . T h e b r o a d m a r k e t Bl o o m b e r g 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 e d a r e t u r n b e t w e e n t h e Tr e a s u r y a n d I n v e s t m e n t G r a d e i n d i c e s w i t h a r e t u r n o f 0 . 5 % f o r t h e 3 r d qu a r t e r . R e t u r n s o v e r t h e 1 - y e a r p e r i o d f o l l o w t h e s a m e g e n e r a l t r e n d a s 3r d q u a r t e r r e s u l t s w i t h t h e B l o o m b e r g B a r c l a y s U . S . C o r p o r a t e I G I n d e x re t u r n i n g a s t r o n g 8 . 6 % f o r t h 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 3 r d q u 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 1 . 9 % v e r s u s a r e t u r n o f 0 . 1 % fo r A A A i s s u e s d u e t o t h e c o m p r e s s i o n o f 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 th r o u g h o u t t h e q u a r t e r . S p r e a d c o m p r e s s i o n w a s m o r e p r o m i n e n t , a n d th u s m o r e b e n e f i c i a l , w i t h i n l o w e r c r e d i t q u a l i t i e s . T h e B l o o m b e r g B a r c l a y s U. S . C o r p o r a t e H i g h Y i e l d I n d e x g a i n e d a n i m p r e s s i v e 5 . 6 % f o r t h e q u a r t e r an d 1 2 . 7 % 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 . 1. 1 % 1. 0 % 0. 3 % 0. 5 % 1. 0 % 1. 4 % 0. 6 % -0 . 3 % 5.6%1.9% 0. 9 % 0. 4 % 0. 1 % -2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 6 . 0 % Mu l t i v e r s e ( 6 . 8 ) 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 ( 6 . 6 ) 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 . 0 ) 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 9.2%11.7% 3. 6 % 5. 2 % 6. 6 % 8.6% 3. 6 % 4. 1 % 12.7%9.8%8.0% 6. 2 % 3. 9 % 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 1 2 . 0 % 1 4 . 0 % Mu l t i v e r s e ( 6 . 8 ) 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 ( 6 . 6 ) 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 . 0 ) 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 September 30, 2016  U. S . T I P S f i n i s h e d t h e 3 r d q u a r t e r w i t h a r e t u r n o f 1 . 0 % . T h e q u a r t e r ’ s re t u r n c a n b e a t t r i b u t e d t o a m o d e s t d e c l i n e i n y i e l d s a t t h e l o n g e r e n d o f th e T I P S y i e l d c u r v e a s w e l l a s a n i n c r e a s e i n t h e C P I A l l U r b a n I n d e x f r o m Ap r i l t o J u l y . T h e T I P S r e t u r n 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 s a s o l i d 6 . 6 % .  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 g a i n s f o r b o t h t h e 3r d q u a r t e r a n d 1 - y e a r p e r i o d . D e s p i t e r e l a t i v e l y l o w i n t e r e s t r a t e s i n in 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 t r a d i n g a t n e g a t i v e yi e l d s , t h e B l o o m b e r g 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 r e t u r n e d 1. 0 % f o r t h e q u a r t e r a n d s t r o n g 1 1 . 7 % o v e r t h e 1 - y e a r p e r i o d . T h i s pe r f o r m a n c e o u t p a c e d a l l d o m e s t i c i n d i c e s e x c e p t t h e B l o o m b e r g B a r c l a y s U. S . C o r p o r a t e H i g h Y i e l d I n d e x ’ s r e t u r n o f 1 2 . 7 % o v e r t h e l a s t t w e l v e mo n t h s .  So m e o f f a c t o r s s u p p o r t i n g 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 gr a p h s o n t h e p r e v i o u s p a 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 i n t h e l i n e gr a p h s o n t h e r i 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 e s ’ c h a r t i l l u s t r a t e s th a t t h e 1 0 - y e a r T r e a s u r y y i e l d ( g r e e n l i n e ) , a f t e r i n i t i a l l y f a l l i n g o n t h e “B r e x i t ” v o t e , r o s e o v e r t h e r e m a i n d e r o f t h e q u a r t e r . T h e b l u e l i n e il 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 S p r e a d ) , w h i c h qu 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 r e q u i r e t o p u r c h a s e an 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 t i g h t e n ( w i d e n ) , i . e . , th e l i n e i s f a l l i n g , i t i s e q u i v a l e n t t o a n i n t e r e s t r a t e d e c r e a s e ( i n c r e a s e ) f o r co r p o r a t e b o n d s , w h i c h b o o s t s r e t u r n s . T h i s s p r e a d h a s c o n s i s t e n t l y f a l l e n si n c e t h e b e g i n n i n g o f 2 0 1 6 a n d i s n o w n e a r i t s l o w e s t p o i n t o f t h e ca l e n d a r y e a r . W h i l e t h e r e w a s u p 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 in 2 0 1 6 , t h e y h a v e n a r r o w e d b y m o r e t h a n 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 11 t h . 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 y i e l d cu 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 . W h i l e T r e a s u r y i s s u e s en d e d t h e 3 r d q u a r t e r s l i g h t l y h i g h e r t h a n t h e p r i o r q u a r t e r , l o n g - t e r m r a t e s re m a i n n e a r t h e i r l o w e s t l e v e l s i n t h e p a s t t w e l v e m o n t h s w h i l e s h o r t - t e r m ra 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 t w e l v e m o n t h r a 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 s i g n i f i c a n 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 in t e r e s t r a 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 12 / 3 1 / 2 0 1 5 3/ 3 1 / 2 0 1 6 6/ 3 0 / 2 0 1 6 9/30/2016 0. 0 0 0. 5 0 1. 0 0 1. 5 0 2. 0 0 2. 5 0 3. 0 0 3. 5 0 Se 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 J u l - 1 6 A u g - 1 6 S e p - 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 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 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 o f September 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 80,896,623 100.0 100.0 0.0 - Highland Capital Balanced 25,024,780 30.9 33.5 -2.6 2,075,589 Rhumbline S&P 500 Equity 19,551,948 24.2 25.0 -0.8 672,207 Rhumbline S&P 400 Equity 9,174,798 11.3 10.0 1.3 -1,085,135 Rhumbline S&P 600 Equity 9,464,523 11.7 10.0 1.7 -1,374,861 Rhumbline International Equity 7,722,343 9.5 10.0 -0.5 367,319 Oppenheimer Dreyfus (OIBAX) (DIBAX)3,389,879 4.2 4.0 0.2 -154,014 American Realty 6,568,344 8.1 7.5 0.6 -501,097 R&D Cash 8 0.0 0.0 0.0 -8 Allocation Differences 0.0%3.0%6.0%9.0%10.0%-3.0 %-6.0 %-9.0 % R&D Cash American Realty Oppenheimer Dreyfus (OIBAX) (DIBAX) Rhumbline International Equity Rhumbline S&P 600 Equity Rhumbline S&P 400 Equity Rhumbline S&P 500 Equity Highland Capital Balanced 0.0% 0.6% 0.2% -0.5 % 1.7% 1.3% -0.8 % -2.6 % 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 (0.0%) American Realty (8.1%) Oppenheimer Dreyfus (OIBAX) (DIBAX) (4.2%) Rhumbline International Equity (9.5%) Rhumbline S&P 600 Equity (11.7%) Rhumbline S&P 400 Equity (11.3%) Rhumbline S&P 500 Equity (24.2%) Highland Capital Balanced (30.9%) 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 September 30, 2016 Page 11 Asset Allocation Compliance Asset Allocation $ Current Allocation (%) Target Allocation (%) Differences (%) Target Rebal. ($000) Domestic Equity 45,758,085 56.6 55.0 1.6 -1,264,942 International Equity 7,722,343 9.5 10.0 -0.5 367,319 Domestic Fixed Income 16,377,329 20.2 23.5 -3.3 2,633,377 International Fixed Income 3,389,879 4.2 4.0 0.2 -154,014 Real Estate 6,568,344 8.1 7.5 0.6 -501,097 Cash Equivalent 1,080,643 1.3 0.0 1.3 -1,080,643 Total Fund 80,896,623 100.0 100.0 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 1.3% 0.6% 0.2% -3.3 % -0.5 % 1.6% Executive Summary Policy Target In Policy 0.0%20.0%40.0%60.0%80.0%100.0%120.0%-20.0 % Cash Equivalent (1.3%) Real Estate (8.1%) International Fixed Income (4.2%) Domestic Fixed Income (20.2%) International Equity (9.5%) Domestic Equity (56.6%) 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 September 30, 2016 Page 12 Asset Allocation By Segment as of June 30, 2016 : $79,185,946 Asset Allocation By Segment as of September 30, 2016 : $80,896,623 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¢ Allocation Segments Market Value Allocation Domestic Equity 45,758,085 56.6¢ International Equity 7,722,343 9.5¢ Domestic Fixed Income 16,377,329 20.2¢ International Fixed Income 3,389,879 4.2¢ Real Estate 6,568,344 8.1¢ Cash Equivalent 1,080,643 1.3¢ Asset Allocation Summary Total Fund Composite As of September 30, 2016 NONE Page 13 Asset Allocation By Manager as of June 30, 2016 : $79,185,946 Asset Allocation By Manager as of September 30, 2016 : $80,896,623 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 (VTRIX) (VWILX) (VHGEX)7,287,862 9.2¢ American Realty 6,196,650 7.8¢ Oppenheimer Dreyfus (OIBAX) (DIBAX)3,302,686 4.2¢ R&D Cash 350,001 0.4¢ Rhumbline International Equity -0.0¢ Allocation Market Value Allocation Highland Capital Balanced 25,024,780 30.9¢ Rhumbline S&P 500 Equity 19,551,948 24.2¢ Rhumbline S&P 600 Equity 9,464,523 11.7¢ Rhumbline S&P 400 Equity 9,174,798 11.3¢ Rhumbline International Equity 7,722,343 9.5¢ American Realty 6,568,344 8.1¢ Oppenheimer Dreyfus (OIBAX) (DIBAX)3,389,879 4.2¢ R&D Cash 8 0.0¢ Vanguard International Equity (VTRIX) (VWILX) (VHGEX)-0.0¢ Asset Allocation Summary Total Fund Composite As of September 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 80,896,623 100.0 3.11 (67)10.96 (14)10.96 (14)7.69 (5)11.25 (7)7.72 (58)04/01/1992 Total Fund Policy Index 3.44 (50)11.62 (7)11.62 (7)7.48 (7)11.15 (8)8.52 (11) Difference -0.33 -0.66 -0.66 0.21 0.10 -0.80 All Public Plans-Total Fund Median 3.42 9.66 9.66 6.22 9.74 7.79 Total Equity Composite 53,480,428 66.1 4.42 13.39 13.39 9.12 15.82 4.99 07/01/2000 Total Equity Policy Index 4.93 14.30 14.30 9.11 15.40 4.80 Difference -0.51 -0.91 -0.91 0.01 0.42 0.19 Total Domestic Equity Rhumbline S&P 500 Equity 19,551,948 24.2 3.86 (63)15.38 (24)15.38 (24)11.11 (34)16.33 (47)4.64 (76)07/01/2000 S&P 500 Index 3.85 (63)15.43 (23)15.43 (23)11.16 (32)16.37 (44)4.51 (82) Difference 0.01 -0.05 -0.05 -0.05 -0.04 0.13 IM U.S. Large Cap Equity (SA+CF) Median 4.33 13.19 13.19 10.36 16.19 5.82 Rhumbline S&P 400 Equity 9,174,798 11.3 4.13 (69)15.21 (28)15.21 (28)9.33 (44)16.53 (47)9.73 (56)01/01/2004 S&P MidCap 400 Index 4.14 (67)15.33 (26)15.33 (26)9.35 (42)16.50 (48)9.64 (62) Difference -0.01 -0.12 -0.12 -0.02 0.03 0.09 IM U.S. Mid Cap Equity (SA+CF) Median 4.75 11.35 11.35 8.97 16.36 9.80 Rhumbline S&P 600 Equity 9,464,523 11.7 7.19 (60)18.00 (26)18.00 (26)9.06 (30)17.83 (30)9.75 (41)01/01/2004 S&P SmallCap 600 7.20 (60)18.12 (24)18.12 (24)9.04 (30)17.86 (29)9.68 (43) Difference -0.01 -0.12 -0.12 0.02 -0.03 0.07 IM U.S. Small Cap Equity (SA+CF) Median 7.69 14.59 14.59 7.60 16.83 9.39 Highland Capital LCG 7,566,815 9.4 4.20 (71)6.68 (94)6.68 (94)9.09 (80)16.33 (47)6.90 (62)10/01/2007 Russell 1000 Growth Index 4.58 (61)13.76 (23)13.76 (23)11.83 (34)16.60 (41)7.74 (41) Difference -0.38 -7.08 -7.08 -2.74 -0.27 -0.84 IM U.S. Large Cap Growth Equity (SA+CF) Median 5.15 11.69 11.69 10.91 16.10 7.31 International Equity Rhumbline International Equity 7,722,343 9.5 N/A N/A N/A N/A N/A 0.01 (94)08/01/2016 MSCI EAFE Index 6.50 (64)7.06 (75)7.06 (75)0.93 (67)7.88 (60)1.36 (72) Difference N/A N/A N/A N/A N/A -1.35 IM International Equity (SA+CF) Median 7.26 11.24 11.24 2.18 8.45 2.08 Asset Allocation & Performance Total Fund Composite (Gross) As of September 30, 2016 Page 15 Asset Allocation & Performance Total Fund Composite (Gross) As of September 30, 2016 Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fixed Income Composite 19,767,208 24.4 0.31 6.60 6.60 3.79 2.97 5.61 04/01/1994 Total Fixed Inc Policy Index 0.47 6.01 6.01 3.73 2.78 5.72 Difference -0.16 0.59 0.59 0.06 0.19 -0.11 Domestic Fixed Income Highland Capital Fixed Income 16,377,329 20.2 0.58 (61)6.51 (17)6.51 (17)4.06 (78)3.10 (90)5.65 (97)04/01/1994 Bloomberg Barclays U.S. Aggregate Index 0.46 (77)5.19 (79)5.19 (79)4.03 (83)3.08 (91)5.78 (91) Difference 0.12 1.32 1.32 0.03 0.02 -0.13 IM U.S. Broad Market Core Fixed Income (SA+CF) Median 0.68 5.62 5.62 4.31 3.66 6.09 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX)3,389,879 4.2 2.64 (66)9.59 (81)9.59 (81)2.41 (55)2.41 (67)2.06 (62)10/01/2010 Citigroup Non-U.S. World Government Bond 0.60 (94)12.61 (55)12.61 (55)1.21 (72)0.24 (85)0.88 (80) Difference 2.04 -3.02 -3.02 1.20 2.17 1.18 IM International Fixed Income All (MF) Median 3.45 13.06 13.06 3.13 4.45 2.87 Real Estate American Realty 6,568,344 8.1 1.83 (73)9.03 (95)9.03 (95)11.82 (78)N/A 11.87 (76)07/01/2012 NCREIF Property Index 1.77 (78)9.22 (93)9.22 (93)11.31 (83)11.18 (85)11.14 (83) Difference 0.06 -0.19 -0.19 0.51 N/A 0.73 IM U.S. Private Real Estate (SA+CF) Median 2.06 10.89 10.89 12.83 12.79 12.87 R&D Cash 8 0.0 Page 16 Asset Allocation & Performance Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite 80,896,623 100.0 3.08 10.74 10.74 7.49 11.03 7.47 04/01/1992 Total Fund Policy Index 3.44 11.62 11.62 7.48 11.15 8.52 Difference -0.36 -0.88 -0.88 0.01 -0.12 -1.05 Total Equity Composite 53,480,428 66.1 4.42 13.39 13.39 9.12 15.82 4.99 07/01/2000 Total Equity Policy Index 4.93 14.30 14.30 9.11 15.40 4.80 Difference -0.51 -0.91 -0.91 0.01 0.42 0.19 Total Domestic Equity Rhumbline S&P 500 Equity 19,551,948 24.2 3.86 15.35 15.35 11.06 16.24 4.51 07/01/2000 S&P 500 Index 3.85 15.43 15.43 11.16 16.37 4.51 Difference 0.01 -0.08 -0.08 -0.10 -0.13 0.00 Rhumbline S&P 400 Equity 9,174,798 11.3 4.13 15.17 15.17 9.29 16.50 9.72 01/01/2004 S&P MidCap 400 Index 4.14 15.33 15.33 9.35 16.50 9.64 Difference -0.01 -0.16 -0.16 -0.06 0.00 0.08 Rhumbline S&P 600 Equity 9,464,523 11.7 7.19 17.96 17.96 9.01 17.80 9.74 01/01/2004 S&P SmallCap 600 7.20 18.12 18.12 9.04 17.86 9.68 Difference -0.01 -0.16 -0.16 -0.03 -0.06 0.06 Highland Capital LCG Equity 7,566,815 9.4 4.20 6.68 6.68 9.09 16.33 6.90 10/01/2007 Russell 1000 Growth Index 4.58 13.76 13.76 11.83 16.60 7.74 Difference -0.38 -7.08 -7.08 -2.74 -0.27 -0.84 International Equity Rhumbline International Equity 7,722,343 9.5 N/A N/A N/A N/A N/A 0.01 08/01/2016 MSCI EAFE Index 6.50 7.06 7.06 0.93 7.88 1.36 Difference N/A N/A N/A N/A N/A -1.35 Total Fixed Income Composite 19,767,208 24.4 0.31 6.60 6.60 3.79 2.97 5.61 04/01/1994 Total Fixed Inc Policy Index 0.47 6.01 6.01 3.73 2.78 5.72 Difference -0.16 0.59 0.59 0.06 0.19 -0.11 Asset Allocation & Performance Total Fund Composite (Net) As of September 30, 2016 Page 17 Asset Allocation & Performance Total Fund Composite (Net) As of September 30, 2016 Allocation Market Value $ % Performance(%) QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Fixed Income Highland Capital Fixed Income 16,377,329 20.2 0.58 6.51 6.51 4.06 3.10 5.65 04/01/1994 Bloomberg Barclays U.S. Aggregate Index 0.46 5.19 5.19 4.03 3.08 5.78 Difference 0.12 1.32 1.32 0.03 0.02 -0.13 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX)3,389,879 4.2 2.64 9.59 9.59 2.41 2.41 2.06 10/01/2010 Citigroup Non-U.S. World Government Bond 0.60 12.61 12.61 1.21 0.24 0.88 Difference 2.04 -3.02 -3.02 1.20 2.17 1.18 Real Estate American Realty 6,568,344 8.1 1.55 7.85 7.85 10.65 N/A 10.69 07/01/2012 NCREIF Property Index 1.77 9.22 9.22 11.31 11.18 11.14 Difference -0.22 -1.37 -1.37 -0.66 N/A -0.45 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 80,896,623 100.0 1.46 (11)10.95 (33)14.75 (16)18.89 (28)0.46 (45)10.42 (37)5.99 (9)-13.46 (56)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 (48)13.68 (62)7.97 (62) 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 -0.54 10.17 12.50 17.94 0.22 9.92 1.59 -12.96 14.09 8.44 Total Equity Composite 53,480,428 66.1 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 19,551,948 24.2 -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 (70)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 -0.36 18.80 21.15 29.20 0.72 10.11 -5.53 -20.84 17.08 10.40 Rhumbline S&P 400 Equity 9,174,798 11.3 1.45 (52)11.81 (67)27.55 (57)28.90 (36)-1.16 (55)17.78 (41)-2.78 (52)-16.54 (17)18.73 (59)6.60 (70) S&P MidCap 400 Index 1.40 (53)11.82 (67)27.68 (55)28.54 (40)-1.28 (58)17.78 (41)-3.11 (55)-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 27.21 -0.68 16.72 -2.72 -20.82 20.64 8.30 Rhumbline S&P 600 Equity 9,464,523 11.7 3.90 (36)5.79 (55)31.40 (56)33.27 (37)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 (55)31.51 (55)33.35 (36)0.21 (38)14.22 (57)-10.61 (77)-13.83 (23)14.93 (60)7.16 (59) 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 6.16 32.16 31.60 -1.22 14.98 -5.31 -18.19 17.43 8.18 Highland Capital LCG 7,566,815 9.4 4.64 (34)16.29 (70)28.73 (8)27.51 (52)-6.48 (97)14.63 (22)15.31 (2)-30.80 (98)N/A N/A Russell 1000 Growth Index 3.17 (55)19.15 (40)19.27 (65)29.19 (38)3.78 (30)12.65 (36)-1.85 (37)-20.88 (54)19.35 (57)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 3.61 18.15 20.29 27.64 1.37 11.29 -3.03 -20.30 20.19 6.82 International Equity Rhumbline International Equity 7,722,343 9.5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index -8.27 (51)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 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A IM International Equity (SA+CF) Median -8.11 5.79 20.31 17.31 -9.61 9.60 7.01 -30.34 29.62 20.13 Asset Allocation & Performance Total Fund Composite (Gross) As of September 30, 2016 Page 19 Asset Allocation & Performance Total Fund Composite (Gross) As of September 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 19,767,208 24.4 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 Fixed Income 16,377,329 20.2 2.22 (87)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) Bloomberg Barclays U.S. Aggregate Index 2.94 (59)3.96 (80)-1.68 (79)5.16 (91)5.26 (49)8.16 (87)10.56 (82)3.65 (32)5.14 (52)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 4.49 -1.26 6.60 5.25 9.26 12.28 2.55 5.15 3.87 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX)3,389,879 4.2 -4.81 (32)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 -7.84 5.33 -3.55 14.22 -0.27 13.67 16.41 -3.81 8.61 5.14 Real Estate American Realty 6,568,344 8.1 14.05 (71)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 (77)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 16.30 13.17 13.35 13.03 16.62 5.80 -34.32 4.88 18.73 18.27 R&D Cash 8 0.0 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 80,896,623 100.0 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 53,480,428 66.1 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 19,551,948 24.2 -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 9,174,798 11.3 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 9,464,523 11.7 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 7,566,815 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 Rhumbline International Equity 7,722,343 9.5 N/A N/A N/A N/A N/A N/A N/A N/A N/A 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 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total Fixed Income Composite 19,767,208 24.4 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 September 30, 2016 Page 21 Asset Allocation & Performance Total Fund Composite (Net) As of September 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 Fixed Income 16,377,329 20.2 2.22 3.51 -2.54 6.07 5.66 8.09 11.96 1.23 4.97 3.56 Bloomberg Barclays U.S. 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 (OIBAX) (DIBAX)3,389,879 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 6,568,344 8.1 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 09/30/2016 3.11 10.96 7.69 11.25 7.72 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 Historical Rolling Performance Total Fund Composite As of September 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 09/30/2016 3.44 11.62 7.48 11.15 8.51 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 Historical Rolling Performance Total Fund Policy Index As of September 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 7.69 5.77 1.31 103.03 10.00 103.02 2.00 Index 7.48 5.29 1.39 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.78 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 11.25 6.63 1.65 101.56 17.00 105.15 3.00 Index 11.15 6.38 1.70 100.00 16.00 100.00 4.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.54 19.00 -0.61 1.00 Risk and Return 3 Years Investment Index 7.4 7.5 7.6 7.7 7.8 R e t u r n (% ) 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 11.1 11.2 11.3 R e t u r n (% ) 6.3 6.4 6.5 6.6 6.7 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 20 (100%)0 (0%)0 (0%)0 (0%)¾ Index 20 20 (100%)0 (0%)0 (0%)0 (0%)¾ Strategy Review Total Fund Composite | Total Fund Policy Index As of September 30, 2016 Page 25 Peer Group Analysis - All Public Plans-Total Fund 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 3.11 (67)10.96 (14)10.96 (14)7.69 (5)11.25 (7)˜ Index 3.44 (50)11.62 (7)11.62 (7)7.48 (7)11.15 (8)˜ Median 3.42 9.66 9.66 6.22 9.74 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 (45)˜ Index 0.81 (19)10.35 (46)14.21 (23)19.60 (17)1.75 (19)˜ Median -0.54 10.15 12.51 17.93 0.23 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 2.12 (35)1.89 (11)3.42 (23)-5.13 (54)0.06 (37)2.88 (19) Index 2.14 (34)2.03 (9)3.54 (17)-4.45 (27)-0.41 (69)2.41 (52) Median 1.91 1.04 2.88 -5.04 -0.11 2.43 Strategy Review Total Fund Composite | Total Fund Policy Index As of September 30, 2016 Page 26 Risk / Reward Historical Statistics 3 Years Ending September 30, 2016 0.0 0.6 1.2 1.8 -0.6 -1.2 Total Fund Composite Total Fund Policy Index Alpha -0.38 0.00¢ Beta 1.08 1.00¢ Sharpe Ratio 1.31 1.39¢ Treynor Ratio 0.07 0.07¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 0.8 1.6 2.4 -0.8 Total Fund Composite Total Fund Policy Index Alpha -0.27 0.00¢ Beta 1.03 1.00¢ Sharpe Ratio 1.65 1.70¢ Treynor Ratio 0.11 0.11¢ Benchmark Relative Historical Statistics 3 Years Ending September 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 0.27 N/A¢ R-Squared 0.98 1.00¢ Tracking Error 0.83 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 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 0.15 N/A¢ R-Squared 0.99 1.00¢ Tracking Error 0.73 0.00¢ Portfolio Comparison Total Fund As of September 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 11.11 7.96 1.37 99.72 11.00 100.49 1.00 Index 11.16 7.96 1.37 100.00 11.00 100.00 1.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.61 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 16.33 9.59 1.64 99.76 17.00 100.03 3.00 Index 16.37 9.59 1.65 100.00 17.00 100.00 3.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.36 19.00 -0.66 1.00 Risk and Return 3 Years Investment Index 11.1 11.2 R e t u r n (% ) 7.9 8.0 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 16.3 16.4 R e t u r n (% ) 9.5 9.6 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)10 (50%)10 (50%)0 (0%)¾ Index 20 0 (0%)11 (55%)9 (45%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)4 (20%)16 (80%)0 (0%)¾ Index 20 0 (0%)4 (20%)16 (80%)0 (0%)¾ Strategy Review Rhumbline S&P 500 Equity | S&P 500 Index As of September 30, 2016 Page 28 Peer Group Analysis - IM U.S. Large Cap Equity (SA+CF) -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 3.86 (63)15.38 (24)15.38 (24)11.11 (34)16.33 (47)˜ Index 3.85 (63)15.43 (23)15.43 (23)11.16 (32)16.37 (44)˜ Median 4.33 13.19 13.19 10.36 16.19 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 (70)30.20 (39)1.14 (45)˜ Median -0.36 18.80 21.15 29.20 0.72 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 2.41 (40)1.35 (30)7.03 (30)-6.47 (43)0.27 (50)0.95 (67) Index 2.46 (38)1.35 (31)7.04 (30)-6.44 (43)0.28 (49)0.95 (67) Median 1.89 0.44 6.17 -6.79 0.27 1.74 Strategy Review Rhumbline S&P 500 Equity | S&P 500 Index As of September 30, 2016 Page 29 Risk / Reward Historical Statistics 3 Years Ending September 30, 2016 0.0 0.5 1.0 1.5 2.0 -0.5 Rhumbline S&P 500 Equity S&P 500 Index Alpha -0.05 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.37 1.37¢ Treynor Ratio 0.11 0.11¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 0.6 1.2 1.8 2.4 -0.6 Rhumbline S&P 500 Equity S&P 500 Index Alpha -0.03 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.64 1.65¢ Treynor Ratio 0.16 0.16¢ Benchmark Relative Historical Statistics 3 Years Ending September 30, 2016 0.0 0.8 1.6 -0.8 -1.6 -2.4 Rhumbline S&P 500 Equity S&P 500 Index Actual Correlation 1.00 1.00¢ Information Ratio -1.25 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.04 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 30, 2016 0.0 0.8 1.6 -0.8 -1.6 Rhumbline S&P 500 Equity S&P 500 Index Actual Correlation 1.00 1.00¢ Information Ratio -1.10 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.04 0.00¢ Portfolio Comparison Rhumbline S&P 500 As of September 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 9.33 8.94 1.04 99.67 9.00 99.48 3.00 Index 9.35 8.99 1.04 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.53 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 16.53 11.32 1.42 100.04 16.00 99.46 4.00 Index 16.50 11.30 1.43 100.00 16.00 100.00 4.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.34 19.00 -0.27 1.00 Risk and Return 3 Years Investment Index 9.3 9.4 R e t u r n (% ) 8.9 9.0 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 16.4 16.5 16.6 R e t u r n (% ) 11.2 11.3 11.4 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 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%)9 (45%)11 (55%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 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%)10 (50%)10 (50%)0 (0%)¾ Strategy Review Rhumbline S&P 400 Equity | S&P MidCap 400 Index As of September 30, 2016 Page 31 Peer Group Analysis - IM U.S. Mid Cap Equity (SA+CF) -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 4.13 (69)15.21 (28)15.21 (28)9.33 (44)16.53 (47)˜ Index 4.14 (67)15.33 (26)15.33 (26)9.35 (42)16.50 (48)˜ Median 4.75 11.35 11.35 8.97 16.36 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 (36)-1.16 (55)˜ Index 1.40 (53)11.82 (67)27.68 (55)28.54 (40)-1.28 (58)˜ Median 1.47 13.46 28.01 27.21 -0.68 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 3.96 (20)3.72 (18)2.61 (66)-8.44 (49)-1.05 (67)5.33 (42) Index 3.99 (19)3.78 (16)2.60 (66)-8.50 (52)-1.06 (70)5.31 (44) Median 2.41 0.65 3.25 -8.48 -0.33 5.01 Strategy Review Rhumbline S&P 400 Equity | S&P MidCap 400 Index As of September 30, 2016 Page 32 Risk / Reward Historical Statistics 3 Years Ending September 30, 2016 0.0 0.4 0.8 1.2 1.6 Rhumbline S&P 400 Equity S&P MidCap 400 Index Alpha 0.02 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.04 1.04¢ Treynor Ratio 0.09 0.09¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 0.6 1.2 1.8 -0.6 Rhumbline S&P 400 Equity S&P MidCap 400 Index Alpha -0.01 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.42 1.43¢ Treynor Ratio 0.16 0.16¢ Benchmark Relative Historical Statistics 3 Years Ending September 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 -0.32 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.07 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 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 0.19 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.15 0.00¢ Portfolio Comparison Rhumbline S&P MidCap 400 As of September 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 9.06 11.00 0.84 99.87 10.00 99.52 2.00 Index 9.04 11.03 0.84 100.00 10.00 100.00 2.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.52 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 17.83 12.65 1.38 99.82 17.00 99.71 3.00 Index 17.86 12.66 1.38 100.00 17.00 100.00 3.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.32 19.00 -0.22 1.00 Risk and Return 3 Years Investment Index 9.0 9.1 R e t u r n (% ) 10.9 11.0 11.1 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 17.8 17.9 R e t u r n (% ) 12.6 12.7 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 1 (5%)17 (85%)2 (10%)0 (0%)¾ Index 20 1 (5%)17 (85%)2 (10%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 2 (10%)11 (55%)7 (35%)0 (0%)¾ Index 20 2 (10%)13 (65%)5 (25%)0 (0%)¾ Strategy Review Rhumbline S&P 600 Equity | S&P SmallCap 600 As of September 30, 2016 Page 34 Peer Group Analysis - IM U.S. Small Cap Equity (SA+CF) -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 26.0 29.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 7.19 (60)18.00 (26)18.00 (26)9.06 (30)17.83 (30)˜ Index 7.20 (60)18.12 (24)18.12 (24)9.04 (30)17.86 (29)˜ Median 7.69 14.59 14.59 7.60 16.83 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 (36)5.79 (55)31.40 (56)33.27 (37)0.21 (38)˜ Index 3.81 (37)5.74 (55)31.51 (55)33.35 (36)0.21 (38)˜ Median 2.41 6.16 32.16 31.60 -1.22 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 3.46 (46)2.59 (22)3.72 (36)-9.22 (33)0.22 (59)3.98 (63) Index 3.48 (45)2.66 (22)3.72 (36)-9.27 (34)0.19 (60)3.96 (63) Median 3.24 -0.07 3.10 -10.26 0.55 4.42 Strategy Review Rhumbline S&P 600 Equity | S&P SmallCap 600 As of September 30, 2016 Page 35 Risk / Reward Historical Statistics 3 Years Ending September 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 0.84 0.84¢ Treynor Ratio 0.09 0.09¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 0.5 1.0 1.5 2.0 -0.5 Rhumbline S&P 600 Equity S&P SmallCap 600 Alpha -0.01 0.00¢ Beta 1.00 1.00¢ Sharpe Ratio 1.38 1.38¢ Treynor Ratio 0.17 0.17¢ Benchmark Relative Historical Statistics 3 Years Ending September 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 0.12 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.06 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 30, 2016 0.0 0.5 1.0 1.5 -0.5 -1.0 Rhumbline S&P 600 Equity S&P SmallCap 600 Actual Correlation 1.00 1.00¢ Information Ratio -0.36 N/A¢ R-Squared 1.00 1.00¢ Tracking Error 0.07 0.00¢ Portfolio Comparison Rhumbline S&P 600 As of September 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 9.09 9.32 0.98 87.80 8.00 143.85 4.00 Index 11.83 7.71 1.49 100.00 11.00 100.00 1.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.60 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 16.33 11.82 1.35 99.85 15.00 100.64 5.00 Index 16.60 9.99 1.60 100.00 17.00 100.00 3.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.35 19.00 -0.60 1.00 Risk and Return 3 Years Investment Index 8.4 9.1 9.8 10.5 11.2 11.9 12.6 R e t u r n (% ) 7.2 7.4 7.6 7.8 8.0 8.2 8.4 8.6 8.8 9.0 9.2 9.4 9.6 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 16.2 16.3 16.4 16.5 16.6 16.7 16.8 R e t u r n (% ) 9.6 9.9 10.2 10.5 10.8 11.1 11.4 11.7 12.0 12.3 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 5 (25%)3 (15%)7 (35%)5 (25%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 17 6 (35%)2 (12%)8 (47%)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 September 30, 2016 Page 37 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 4.20 (71)6.68 (94)6.68 (94)9.09 (80)16.33 (47)˜ Index 4.58 (61)13.76 (23)13.76 (23)11.83 (34)16.60 (41)˜ Median 5.15 11.69 11.69 10.91 16.10 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 (52)-6.48 (97)˜ Index 3.17 (55)19.15 (40)19.27 (65)29.19 (38)3.78 (30)˜ Median 3.61 18.15 20.29 27.64 1.37 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment -0.43 (76)-1.76 (55)4.68 (87)-7.61 (80)1.66 (21)5.93 (12) Index 0.61 (51)0.74 (21)7.32 (46)-5.29 (34)0.12 (67)3.84 (52) Median 0.62 -1.58 7.05 -5.95 0.61 3.92 Strategy Review Highland Capital Equity | Russell 1000 Growth Index As of September 30, 2016 Page 38 Risk / Reward Historical Statistics 3 Years Ending September 30, 2016 0.0 2.0 4.0 -2.0 -4.0 -6.0 Highland Capital Equity Russell 1000 Growth Index Alpha -4.03 0.00¢ Beta 1.14 1.00¢ Sharpe Ratio 0.98 1.49¢ Treynor Ratio 0.08 0.12¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 2.0 4.0 -2.0 -4.0 Highland Capital Equity Russell 1000 Growth Index Alpha -1.92 0.00¢ Beta 1.12 1.00¢ Sharpe Ratio 1.35 1.60¢ Treynor Ratio 0.14 0.16¢ Benchmark Relative Historical Statistics 3 Years Ending September 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 -0.76 N/A¢ R-Squared 0.90 1.00¢ Tracking Error 3.18 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 30, 2016 0.0 1.5 3.0 4.5 6.0 -1.5 Highland Capital Equity Russell 1000 Growth Index Actual Correlation 0.94 1.00¢ Information Ratio -0.01 N/A¢ R-Squared 0.89 1.00¢ Tracking Error 4.05 0.00¢ Portfolio Comparison Highland Capital Equity As of September 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 4.06 2.56 1.56 96.02 10.00 71.58 2.00 Index 4.03 2.61 1.51 100.00 9.00 100.00 3.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 1.76 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 3.10 2.87 1.06 100.33 14.00 98.85 6.00 Index 3.08 2.62 1.15 100.00 15.00 100.00 5.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 1.71 19.00 -0.83 1.00 Risk and Return 3 Years Investment Index 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 3.0 3.1 3.2 R e t u r n (% ) 2.5 2.6 2.7 2.8 2.9 3.0 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)0 (0%)7 (35%)13 (65%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 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%)2 (10%)18 (90%)¾ Strategy Review Highland Capital Fixed Income | Bloomberg Barclays U.S. Aggregate Index As of September 30, 2016 Page 40 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 0.58 (61)6.51 (17)6.51 (17)4.06 (78)3.10 (90)˜ Index 0.46 (77)5.19 (79)5.19 (79)4.03 (83)3.08 (91)˜ Median 0.68 5.62 5.62 4.31 3.66 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 (87)3.51 (94)-2.54 (99)6.07 (71)5.66 (26)˜ Index 2.94 (59)3.96 (80)-1.68 (79)5.16 (91)5.26 (49)˜ Median 3.02 4.49 -1.26 6.60 5.25 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 2.41 (41)3.61 (2)-0.21 (11)1.21 (43)-1.58 (47)1.54 (86) Index 2.21 (69)3.03 (50)-0.57 (72)1.23 (40)-1.68 (72)1.61 (75) Median 2.33 3.03 -0.45 1.13 -1.60 1.74 Strategy Review Highland Capital Fixed Income | Bloomberg Barclays U.S. Aggregate Index As of September 30, 2016 Page 41 Risk / Reward Historical Statistics 3 Years Ending September 30, 2016 0.0 0.5 1.0 1.5 2.0 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index Alpha 0.24 0.00¢ Beta 0.95 1.00¢ Sharpe Ratio 1.56 1.51¢ Treynor Ratio 0.04 0.04¢ Risk / Reward Historical Statistics 5 Years Ending September 30, 2016 0.0 0.5 1.0 1.5 -0.5 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index Alpha -0.16 0.00¢ Beta 1.06 1.00¢ Sharpe Ratio 1.06 1.15¢ Treynor Ratio 0.03 0.03¢ Benchmark Relative Historical Statistics 3 Years Ending September 30, 2016 0.0 0.3 0.6 0.9 1.2 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index Actual Correlation 0.97 1.00¢ Information Ratio 0.05 N/A¢ R-Squared 0.93 1.00¢ Tracking Error 0.68 0.00¢ Benchmark Relative Historical Statistics 5 Years Ending September 30, 2016 0.0 0.3 0.6 0.9 1.2 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index Actual Correlation 0.97 1.00¢ Information Ratio 0.03 N/A¢ R-Squared 0.94 1.00¢ Tracking Error 0.74 0.00¢ Portfolio Comparison Highland Capital Fixed Income As of September 30, 2016 Benchmark: Bloomberg Barclays U.S. Aggregate Index Page 42 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 2.41 5.25 0.47 41.37 8.00 7.26 4.00 Index 1.21 7.75 0.18 100.00 6.00 100.00 6.00 90 Day U.S. Treasury Bill 0.09 0.05 N/A 1.09 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 2.41 5.22 0.47 51.93 13.00 10.03 7.00 Index 0.24 7.02 0.06 100.00 9.00 100.00 11.00 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.95 19.00 -0.39 1.00 Risk and Return 3 Years Investment Index 0.9 1.2 1.5 1.8 2.1 2.4 2.7 3.0 R e t u r n (% ) 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 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 13 0 (0%)4 (31%)9 (69%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 5 0 (0%)0 (0%)5 (100%)0 (0%)¾ Index 20 0 (0%)2 (10%)4 (20%)14 (70%)¾ Strategy Review Oppenheimer Dreyfus (OIBAX) (DIBAX) | Citigroup Non-U.S. World Government Bond As of September 30, 2016 Page 43 Peer Group Analysis - IM International Fixed Income All (MF) -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 QTR FYTD 1 YR 3 YR 5 YR Investment 2.64 (66)9.59 (81)9.59 (81)2.41 (55)2.41 (67)˜ Index 0.60 (94)12.61 (55)12.61 (55)1.21 (72)0.24 (85)˜ Median 3.45 13.06 13.06 3.13 4.45 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 (32)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 -7.84 5.33 -3.55 14.22 -0.27 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 2.71 (76)5.03 (40)-1.02 (83)-5.70 (69)1.42 (13)0.37 (54) Index 4.04 (47)9.10 (3)-1.38 (90)1.71 (2)-1.54 (76)-4.36 (95) Median 3.86 4.66 0.49 -4.25 -0.33 0.49 Strategy Review Oppenheimer Dreyfus (OIBAX) (DIBAX) | Citigroup Non-U.S. World Government Bond As of September 30, 2016 Page 44 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 11.82 1.85 6.00 104.49 12.00 N/A N/A Index 11.31 0.98 10.53 100.00 12.00 N/A N/A 90 Day U.S. Treasury Bill 0.09 0.05 N/A 0.79 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 11.18 0.80 12.84 100.00 20.00 N/A N/A 90 Day U.S. Treasury Bill 0.08 0.04 N/A 0.72 19.00 N/A 1.00 Risk and Return 3 Years Investment Index 11.2 11.4 11.6 11.8 12.0 R e t u r n (% ) 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 11.1 11.2 R e t u r n (% ) 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 6 0 (0%)0 (0%)0 (0%)6 (100%)¾ Index 20 2 (10%)1 (5%)1 (5%)16 (80%)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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 0 0 0 0 0¾ Index 20 8 (40%)1 (5%)2 (10%)9 (45%)¾ Strategy Review American Realty | NCREIF Property Index As of September 30, 2016 Page 45 Peer Group Analysis - IM U.S. Private Real Estate (SA+CF) -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 R e t u r n QTR FYTD 1 YR 3 YR 5 YR Investment 1.83 (73)9.03 (95)9.03 (95)11.82 (78)N/A˜ Index 1.77 (78)9.22 (93)9.22 (93)11.31 (83)11.18 (85)˜ Median 2.06 10.89 10.89 12.83 12.79 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 (71)12.45 (72)12.30 (73)N/A N/A˜ Index 13.48 (77)11.26 (91)11.00 (83)11.00 (75)16.10 (71)˜ Median 16.30 13.17 13.35 13.03 16.62 Comparative Performance 1 Qtr Ending Jun-2016 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 Investment 1.25 (97)2.63 (52)3.03 (78)3.39 (63)3.74 (50)4.44 (33) Index 2.03 (67)2.21 (65)2.91 (90)3.09 (75)3.14 (72)3.57 (52) Median 2.50 2.64 3.63 3.63 3.74 3.74 Strategy Review American Realty | NCREIF Property Index As of September 30, 2016 Page 46 Total Policy Historical Hybrid Composition Allocation Mandate Weight (%) Mar-1992 Bloomberg Barclays U.S. 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 Bloomberg Barclays U.S. 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 Bloomberg Barclays U.S. 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 Bloomberg Barclays U.S. 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 Bloomberg Barclays U.S. Aggregate Index 89.00 Citigroup Non-U.S. World Government Bond 11.00 Benchmark History Investment Policy Benchmarks As of September 30, 2016 Page 47 Palm Beach Gardens Police Review of International Equity & Bond Funds Peer Group Analysis - IM International Fixed Income (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks to maximize total return through capital appreciation and income. To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed-income securities. It also normally invests at least 65% of its assets in non-U.S. dollar denominated fixed-income securities of foreign governments and companies located in various countries, including emerging markets. The fund may invest up to 25% of its assets in emerging markets generally and up to 5% of its assets in any single emerging market country. It is non-diversified. 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 :$142 Million Total Assets Date :09/30/2016 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)1.85 (41)10.43 (52)8.67 (65)2.25 (33)2.01 (38)-6.76 (64)3.58 (23)-3.92 (57)9.28 (35)3.21 (42)˜ Citigroup Non-U.S. World Government Bond 0.60 (80)14.18 (7)12.61 (13)1.21 (50)0.24 (78)-5.54 (48)-2.68 (73)-4.56 (64)1.50 (97)5.17 (21)˜ Median 1.50 10.75 9.86 1.19 1.60 -5.74 0.41 -3.74 6.71 2.75 1 Qtr Ending Jun-2016 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 Dreyfus Intl Bond;A (DIBAX)2.35 (57)5.94 (51)-1.59 (86)-1.88 (67)-3.38 (85)-0.06 (38) Citigroup Non-U.S. World Government Bond 4.04 (2)9.10 (1)-1.38 (79)1.71 (4)-1.54 (42)-4.36 (87) IM International Fixed Income (MF) Median 2.55 5.99 -0.75 -1.38 -1.76 -1.40 As of September 30, 2016 Performance Review Dreyfus Intl Bond;A (DIBAX) NONE Page 49 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 -12.0 -6.0 0.0 6.0 12.0 18.0 D r e y f u s I n t l B o n d ;A (D I B A X ) (% ) -12.0 -6.0 0.0 6.0 12.0 18.0 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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Dreyfus Intl Bond;A (DIBAX)20 1 (5%)19 (95%)0 (0%)0 (0%)˜ Citigroup Non-U.S. World Government Bond 20 0 (0%)3 (15%)8 (40%)9 (45%)˜ -1.00 0.00 1.00 2.00 3.00 R e t u r n (% ) 4.60 4.83 5.06 5.29 5.52 5.75 5.98 6.21 6.44 Risk (Standard Deviation %) Return Standard Deviation Dreyfus Intl Bond;A (DIBAX)2.01 5.00˜ Citigroup Non-U.S. World Government Bond 0.24 6.22˜ Median 1.60 6.08¾ 0.74 1.11 1.48 1.85 2.22 2.59 R e t u r n (% ) 4.42 4.76 5.10 5.44 5.78 6.12 6.46 6.80 7.14 Risk (Standard Deviation %) Return Standard Deviation Dreyfus Intl Bond;A (DIBAX)2.25 4.92˜ Citigroup Non-U.S. World Government Bond 1.21 6.64˜ Median 1.19 6.14¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Dreyfus Intl Bond;A (DIBAX)4.10 57.18 38.74 1.53 0.23 0.46 0.58 2.89 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.20 1.00 4.46 90 Day U.S. Treasury Bill 6.62 0.80 -0.09 0.08 -0.20 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 71.25 49.82 1.85 0.45 0.41 0.64 3.23 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.06 1.00 4.37 90 Day U.S. Treasury Bill 6.20 0.64 -0.25 0.08 -0.06 N/A 0.00 0.01 As of September 30, 2016 Performance Review Dreyfus Intl Bond;A (DIBAX) NONE Page 50 Peer Group Analysis - IM International Fixed Income (MF) Comparative Performance Mutual Fund Info from Lipper Summary Description The investment seeks total return. The fund normally invests at least 80% of its assets in debt securities. It typically invests in at least three countries other than the United States. The fund invests in debt securities of issuers in both developed and emerging markets throughout the world. It invests mainly in debt securities of foreign government and corporate issuers. The fund may buy securities issued by companies of any size or market capitalization range and at times might emphasize securities of issuers in a particular capitalization range. It is non-diversified. 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 :$1,613 Million Total Assets Date :09/30/2016 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)3.47 (6)11.01 (44)9.95 (49)2.60 (28)2.85 (25)-3.72 (29)0.32 (52)-4.16 (60)10.77 (24)-0.28 (80)˜ Citigroup Non-U.S. World Government Bond 0.60 (80)14.18 (7)12.61 (13)1.21 (50)0.24 (78)-5.54 (48)-2.68 (73)-4.56 (64)1.50 (97)5.17 (21)˜ Median 1.50 10.75 9.86 1.19 1.60 -5.74 0.41 -3.74 6.71 2.75 1 Qtr Ending Jun-2016 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 Oppenheimer Intl Bd;A (OIBAX)3.08 (28)4.08 (66)-0.96 (56)-1.59 (58)-1.88 (52)0.67 (21) Citigroup Non-U.S. World Government Bond 4.04 (2)9.10 (1)-1.38 (79)1.71 (4)-1.54 (42)-4.36 (87) IM International Fixed Income (MF) Median 2.55 5.99 -0.75 -1.38 -1.76 -1.40 As of September 30, 2016 Performance Review Oppenheimer Intl Bd;A (OIBAX) 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 -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 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Oppenheimer Intl Bd;A (OIBAX)20 0 (0%)15 (75%)5 (25%)0 (0%)˜ Citigroup Non-U.S. World Government Bond 20 0 (0%)3 (15%)8 (40%)9 (45%)˜ -1.00 0.00 1.00 2.00 3.00 4.00 R e t u r n (% ) 5.12 5.28 5.44 5.60 5.76 5.92 6.08 6.24 6.40 Risk (Standard Deviation %) Return Standard Deviation Oppenheimer Intl Bd;A (OIBAX)2.85 5.39˜ Citigroup Non-U.S. World Government Bond 0.24 6.22˜ Median 1.60 6.08¾ 0.50 1.00 1.50 2.00 2.50 3.00 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)2.60 4.47˜ Citigroup Non-U.S. World Government Bond 1.21 6.64˜ Median 1.19 6.14¾ Tracking Error Up Market Capture Down Market Capture Alpha Information Ratio Sharpe Ratio Beta Downside Risk Oppenheimer Intl Bd;A (OIBAX)5.45 43.71 19.17 2.13 0.23 0.58 0.39 2.39 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.20 1.00 4.46 90 Day U.S. Treasury Bill 6.62 0.80 -0.09 0.08 -0.20 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)5.19 71.64 40.21 2.76 0.49 0.54 0.53 3.50 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A 0.06 1.00 4.37 90 Day U.S. Treasury Bill 6.20 0.64 -0.25 0.08 -0.06 N/A 0.00 0.01 As of September 30, 2016 Performance Review Oppenheimer Intl Bd;A (OIBAX) NONE Page 52 Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager’s performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non-systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product’s performance. Distributed to Paid In (DPI) - The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager’s performance and the risk-free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) - Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R-Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk-adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Total Value to Paid In (TVPI) - The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund’s life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. Page 53 Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client’s custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. Page 54 SeptemberMay 20165 1 PALM BEACH GARDENS POLICE PENSION FUND BOARD OF TRUSTEES COMBINED INVESTMENT POLICY STATEMENT FOR HIGHLANDICC CAPITAL MANAGEMENT, AMERICAN REALTY ADVISORS & RHUMBLINE ADVISORS Amended August 2014 SeptemberMay 2016 5 I. PURPOSE OF INVESTMENT POLICY STATEMENT The Pension Board Trustees maintain that an important determinant of future investment returns is the expression and periodic review of the Fund’s investment objectives. To that end, the Trustees have adopted this statement of Investment Policy. In fulfilling their fiduciary responsibility, the Trustees recognize that the retirement system is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Board also recognizes that the obligations of the Fund are long-term and that investment policy should be made with a view toward performance and return over a number of years. The general investment objective, then, is to obtain a reasonable total rate of return – defined as interest and dividend income plus realized and unrealized capital gains or losses – commensurate with the Prudent Investor Rule and any other applicable statute or requirement. A reasonably consistent and adequate return, protection of the assets against the inroads of inflation and safety of the assets are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short periods of one or two years or less. Performance will be measured quarterly. II. INVESTMENT PERFORMANCE OBJECTIVES – QUARTERLY EVALUATION MECHANISMS The below listed performance measures will be used as objective criteria for evaluating effectiveness of the Investment Managers: A. Total Return of the Combined Managers: 1. The performance of the total fund will be measured each quarter for rolling three and five year periods. These periods are considered sufficient to accommodate the different market cycles commonly experienced with investments. The return of this portfolio is expected to exceed the return of a portfolio comprising: From 4/1/2012 onwards the combined performance is expected to exceed the return of a portfolio comprising: 25% S&P500, 10% S&P MidCap 400, 10% S&P SmallCap 600, 10% Russell 1000 Growth, 10% MSCI EAFE, 2% NCREIF, 4% Citi Non-US $ Bond Index and 29% BCAB. From 4/1/2014 onwards the combined performance is expected to exceed the return of a portfolio comprising: SeptemberMay 20165 2 25% S&P500, 10% S&P MidCap 400, 10% S&P SmallCap 600, 10% Russell 1000 Growth, 10% MSCI EAFE, 5% NCREIF, 4% Citi Non-US $ Bond Index and 26% BCAB. From 7/1/2015 onwards the combined performance is expected to exceed the return of a portfolio comprising: 25% S&P500, 10% S&P MidCap 400, 10% S&P SmallCap 600, 10% Russell 1000 Growth, 10% MSCI EAFE, 7.5% NCREIF, 4% Citi Non-US $ Bond Index and 23.5% BCAB. From 1/1/2017 onwards the combined performance is expected to exceed the return of a portfolio comprising: 25% S&P500, 10% S&P MidCap 400, 10% S&P SmallCap 600, 10% Russell 1000 Growth, 10% MSCI EAFE, 7.5% NCREIF and 27.5% BCAB. B. For HighlandICC Capital Management: The performance of the total fund will be measured each quarter for rolling three and five year periods. These periods are considered sufficient to accommodate the market cycles commonly experienced with investments. After July 1, 2000 the return of this portfolio is expected to exceed the return of the BCAB. After October 1, 2008 the return of this portfolio is expected to exceed the return of 78% of the BCAB Index and 22% of the Russell 1000 Growth Index. After April 1, 2014 the return of this portfolio is expected to exceed the return of 72% of the BCAB Index and 28% of the R1000G Index. After July 1, 2015 the return of this portfolio is expected to exceed the return of 70% of the BCAB Index and 30% of the R1000G Index. After January 1, 2017 the return of this portfolio is expected to exceed the return of 73% of the BCAB Index and 27% of the R1000G Index. C. For Rhumbline Advisors The performance of the total fund will be measured each quarter for rolling three and five year periods. These periods are considered sufficient to accommodate the market cycles commonly experienced with investments. After July 1, 2000 until December 31, 2002 the return of this portfolio is expected to match the return of the S&P500 Index. From January 1, 2003 until December 31, 2003 the return of this portfolio is expected to match the return of an 80% S&P500 and 20% S&P MidCap 400 policy. After January 1, 2004 the return of this portfolio is expected to match the return of a 60% S&P500, 20% S&P MidCap 400 and 20% S&P SmallCap 600 policy. After October 1, 2007 the return of this portfolio is expected to match the return of a 56% S&P500, 22% S&P MidCap 400 and 22% S&P SmallCap 600 policy. After January 1, 2017 the return of this portfolio is expected to match the return of a 46% S&P500, 18% S&P MidCap 400, 18% S&P SmallCap 600 policy and 18% MSCI EAFE. D. For International Equity Mutual Funds After October 1, 2006 the return of this portfolio, which is made up of three (3) Vanguard Mutual Funds, is expected to exceed the return of the MSCI EAFE Index Fund. Formatted: Font: Bold Formatted: Font: Bold Formatted: Font: Bold Formatted: Strikethrough SeptemberMay 20165 3 E. For American Realty Advisors After April 1, 2012 the return of this portfolio is expected to exceed the return of the NCREIF Index. F. For International Bond Mutual Funds After October 1, 2010 the return of this portfolio is expected to exceed the return of the Citi Non-US $ International Bond Fund Index. G. For Each Investment Manager: 1. Relative to other similar investment managers, it is expected the manager’s performance with regard to the total return of the fund will be in the top forty percent (40%) of the appropriate Performa Universe over three to five year periods. When performance is below the standard, the manager will report to the Trustees the reasons for the occurrence and the steps taken to avoid reoccurrence. a. On an absolute basis, it is expected that the total return of the fund will equal or exceed the actuarial earnings assumption, and equal or exceed the Consumer Price Index, plus 3% over three to five year periods. When performance is below these standards, the manager will report to the Trustees the reasons for occurrence and the steps taken to avoid reoccurrence. b. From time to time the performance monitor may adjust or change the evaluation indices and/or universes so as to more adequately measure and evaluate the investment manager’s particular equity and fixed income investment style. Any such adjustment or change would be communicated to both the Investment Manager and the Pension Board Trustees at the time of said adjustment or change. III. INVESTMENT GUIDELINES A. Authorized Investments 1. To include Certificates of Deposit up to a $100,000 maximum value and money market deposit accounts of a national bank, a state bank or a savings and loan association insured by the Federal Deposit Insurance Corporation. 2. Obligations issued by the United States Government or obligations guaranteed as to principal and interest by the United States Government. 3. Stocks, bonds or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, provided: a. Equities will be traded on one or more of the following recognized national exchanges: 1. New York Stock Exchange 2. American Stock Exchange 3. The NASDAQ Stock Market Formatted: Strikethrough SeptemberMay 20165 4 b. The individual issue meets the following rating criteria: 1. Fixed income: Standard & Poor’s, AAA, AA, A or Moody’s Aaa, Aa, A. (not applicable to the International Bond mutual funds) 2. Equities: Value Line Investment Survey Rank for Safety, 1, 2, and 3 or Standard & Poor’s A+, A or A- 3. Money Market: Standard & Poor’s A1 or Moody’s P1 c. Not more than five percent of the Fund’s assets shall be invested in the common stock or capital stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed five percent (5%) of the outstanding capital stock of the company. Fixed income investments shall mean publicly traded debt securities issued by the United States Government or agencies of the United States Government, sovereign and supranational debt, domestic corporations and domestic banks and other United States financial institutions or mortgage/asset backed securities. “Yankee bonds” (debt securities issued by foreign entities denominated in U.S. dollars which are traded domestically) are also available for investment. Use of To Be Announced (TBA) Securities. All investments in TBA securities shall be issued by a Federal Agency or be of investment grade. Cash equivalent balances to satisfy the transaction must be available at the time of purchase and held until final settlement. Prohibited Securities. The following types of asset backed securities and collaterized mortgage obligations are not permissible for investment using the Fund’s assets without the Trustees’ prior written approval: 1. Securities paying Interest Only (ID’s). 2. Securities representing Principal Only (PO’s). 3. Accrual Bonds (z-tranches). 4. Inverse or Reverse Floaters with a multiplier greater than 1.00 or less than -1.00. 5. Asset pools not domiciled in the United States. 6. Collateralized Bond Obligations (CBO’s) 7. Collateralized Debt Obligations (CDO’s) 8. Collateralized Loan Obligations (CLO’s) 9. Companion bonds. 4. Mutual Funds, commingled stock, bond or money market funds whose individual investments are restricted to securities meeting the criteria expressed in III. SeptemberMay 20165 5 5. Bonds issued by the State of Israel. 6. The use of unhedged and/or leveraged derivatives will not be allowed in any form. 7. International Equity Stocks or Bonds or Mutual Funds may be purchased. 8. Real Estate investments and securities may be purchased. The Real estate investment will not exceed 107.5% of the Total Fund assets at market. The Board understands that trust documents of the Real Estate fund will guide this investment, and not the Plans’ Investment Policy. B. Limitations Investments in corporate common stock, international equities, convertible bonds and convertible preferred issues should be targeted at sixty-five percent (65%) of the fund at market value and shall not exceed seventy percent (70%) of the fund assets at market. No restriction is placed on the Fund’s percentage holdings of bonds or cash. In accordance with the Protecting Florida's Investment Act (Fla. Stat. 215.473), the Board is prohibited from directly investing in any companies, identified by the State Board of Administration (SBA) on its website each quarter, as a scrutinized company. The investment Consultant and each investment manager shall review its investments each quarter to determine whether it is required to sell, redeem, divest or withdraw any publicly traded security of a company identified by the SBA as a scrutinized company and shall notify the Board each quarter, in writing, of the results of its review. Beginning no later than January 1, 2010, the Board shall sell, redeem, divest or withdraw all publicly traded securities it holds in any scrutinized company by no later than September 10, 2010 for Chapter 185 plans. Mutual and Commingled Funds may be excluded from this restriction as long as that company does not offer a similar fund that is in compliance with the above restriction, is NOT available. IV. PERFORMANCE MEASUREMENT The Board has specified performance measures as are appropriate for the nature and size of the assets within the Board’s custody. Those performance measures are set forth in the Internal Controls section of this Investment Policy. V. INVESTMENT AND FUDICIARY STANDARDS In performing its investment duties, the Board shall comply with the fiduciary standards set forth in the Employees Retirement Income Security Act of 1974, 29 U.S.C.§1104(a)(1)(A) – (C), meaning that Board members must discharge their duties with respect to the Plan solely in the interest of participants and beneficiaries and for the exclusive purpose of: (a) providing benefits to participants and their beneficiaries Formatted: Font: Not Bold SeptemberMay 20165 6 and (b) defraying reasonable expenses of administering the Plan; with the care, skill, prudence and diligence under circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; by diversifying investments of the plan so as to minimize risk of large losses, unless under the circumstances it is clearly prudent not to do so. In the event of conflict with other provisions of law authorizing investments, the investment and fiduciary standards set forth in this section shall prevail. VI. PORTFOLIO COMPOSITION The Investment Guidelines establish parameters for investments and limits on security issues, issuers and maturities. Said Guidelines are commensurate with the nature and size of the funds within control of the Board. The Board believes that the Plan's risk and liquidity posture are, in large part, a function of asset class mix. The Board has reviewed long-term performance characteristics of various asset classes, focusing on balancing the risks and rewards of market behavior. VII. RISK AND DIVERSIFICATION The Investment Guidelines provide for appropriate diversification of the portfolio. Investments have been diversified to the extent practicable to control risk of loss resulting from over concentration in a specific maturity, issuer, instrument, dealer or bank through which financial instruments are bought and sold. The Board recognizes the difficulty of achieving the Plan's investment objectives in light of uncertainties and complexities of contemporary investment markets. The Board also recognizes that some risk must be assumed to achieve the Plan's long-term investment objectives. In establishing the risk tolerances, the Plan's ability to withstand short and intermediate term variability has been considered. However, the Plan's strong financial condition enables the Board to adopt a long-term investment perspective. VIII. MATURITY AND LIQUIDITY REQUIREMENTS The Fund’s Investment Manager(s) shall be kept informed of the liquidity requirements of the Fund. The Fund’s investment portfolio shall be structured so as to provide sufficient liquidity to pay obligations as they come due. To the extent possible, cash needs and anticipated cash-flow requirements shall be matched with the maturity schedule of the portfolio. IX. EXPECTED ANNUAL RATE OF RETURN The Board shall determine, in consultation with its consultant and investment professionals, the total expected annual rate of return for the current year, for the next several years, and for the long term thereafter. SeptemberMay 20165 7 X. THIRD-PARTY CUSTODIAL AGREEMENTS The Board shall retain a third-party to custody the fund’s assets. All securities shall be designated as an asset of the Board, and no withdrawal of securities, in whole or in part, shall be made from safekeeping except by an authorized member of the Board or the Board’s designee. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a “delivery vs. payment” basis, if applicable, to ensure that the custodian will have the security or money, as appropriate in hand at the conclusion of the transaction. XI. MASTER REPURCHASE AGREEMENT All approved institutions that transact repurchase agreements on behalf of the Fund, including short-term investments by the Fund’s custodian, shall execute and adhere to the requirements of the Master Repurchase Agreement. XII. BID REQUIREMENT The Board requires that the Investment Manager(s) competitively bid securities as appropriate and select he most advantageous bid. XIII. INTERNAL CONTROLS The Fund shall be governed by a set of written internal controls and operational procedures which shall be periodically reviewed by the Fund’s Certified Public Accountant and are contained herein. The Board shall retain an independent Certified Public Accountant on an annual basis as well as require reports from the Fund’s Investment Consultant quarterly. This policy is designed to safeguard the Fund from losses that might arise from fraud, error or misrepresentations by third parties, or imprudent actions by the Board or employees of the plan sponsor. XIV. CONTINUING EDUCATION The Fund acknowledges the importance of continuing education for trustees. To that end, the trustees are encouraged to attend educational conferences in connection with their duties and responsibilities as trustees. XV. REPORTING The Fund’s Investment Consultant shall provide quarterly reports of the Fund’s investment activities. These reports shall be public records and shall be submitted to the plan sponsor as required by law. Formatted: Indent: Left: 0" SeptemberMay 20165 8 XVI. FILING OF INVESTMENT POLICY Upon adoption by the Board, this Investment Policy shall be promptly filed with the Florida Department of Management Services, the City of Palm Beach Gardens and the Actuary. The effective date of this Investment Policy, and any amendment hereto, shall be 31st calendar day following the filing date with the City. XVII. VALUATION OF ILLIQUID INVESTMENTS No illiquid investments shall be utilized by this Fund. XIX. COMMUNICATIONS AFFECTING MANAGERS A. It shall be incumbent upon the Investment Managers and the custodian to apprise the Board of all transactions. On a monthly basis each Manager shall supply an accounting statement, which will include a summary of all receipts and disbursements, the cost and the market value of all assets and their percentage of the Fund invested in equities, fixed income and money market at cost. On a quarterly basis each Manager shall provide an analysis of the quality of the assets, a summary of common stock diversification and attendant schedules. In addition, each manager shall deliver each quarter a report detailing the fund’s performance, adherence to the investment policy, forecast of the market and economy, portfolio analysis and current assets of the trust. Written reports shall be provided to the Board at the quarterly meetings. Each Manager will provide immediate written and telephone notice to the Board and the performance monitor of any significant market related or non-market related event. The Board have retained a monitoring service to evaluate and report on a quarterly basis the rate of return and relative performance of the fund. B. Meetings; the Board will meet annually with the monitoring service’s representative to review the performance report. At least once a year, the Board will meet with each Investment Manager and appropriate outside consultants to discuss performance results, economic outlook, investment strategy and tactics and other pertinent matters affecting the fund. C. When the Fund owns securities that met investment restrictions at time of purchase, that no longer meet investment restrictions, the Manager will sell such securities within a reasonable period of time. Manager shall be required to report such situations and recommendations monthly or as directed by the Board. D. Any foreign securities, which are acquired through spin-offs, which do not meet the investment restrictions, will be sold forthwith. Manager shall be required to report such situations and recommendations immediately or as directed by the Board. SeptemberMay 20165 9 E. Any securities, which are acquired through spin-offs, which do not meet the investment restrictions, will be sold within a reasonable amount of time. Manager shall be required to report such situations and recommendations immediately or as directed by the Board. F. The Investment Manager’s quarterly report will list separately any security whose value has diminished twenty-five percent (25%) or more from the purchase price. G. In accordance with their proxy guidelines, the Investment Manager shall vote proxies on behalf of the Board and shall report to the Board on an annual basis how each proxy was voted, the issue as to each, and the date the proxy was voted. If a proxy was not voted, the Manager shall provide a written statement indicating the reason that particular proxy was not voted. H. The Board may wish to recapture as many of their commission dollars as possible consistent with obtaining the “best execution” as defined in ERISA Technical Release 85-1 which is made part of this agreement by reference. I. The Investment Manager shall notify the Board of any and all material events regarding the firm and shall furnish the Board with the Securities Exchange Commission (SEC) Form ADV, Part II annually. J. The Managers are authorized to take direction from the Board regarding rebalancing the equity portfolios. K. The Investment Consultant, on behalf of the Board, shall send a letter to any pooled fund referring the Investment Manager to the listing of ‘Scrutinized Companies’ by the State Board of Administration (‘SBA list’), on their website www.sbafla.com/fsb/. This letter shall request that they consider removing such companies from the fund or create a similar actively managed fund having indirect holdings devoid of such companies. If the Investment Manager creates a similar fund, the Manager shall replace all applicable investments with investments in the similar fund in an expedited timeframe consistent with prudent investing standards. For the purposes of this section, a private equity fund is deemed to be an actively managed investment fund. However, after sending the required correspondence, the Fund is not required to sell the pooled fund. XX. CRITERIA FOR INVESTMENT MANAGER REVIEW The Board wishes to adopt standards by which judgments on the ongoing performance of an Investment Manager may be made. In this regard, the following will be closely monitored. 1. Four consecutive quarters of Total Fund performance below the fortieth (40%) percentile in the Manager performance rankings. 2. Loss by the Manager of any senior investment personnel. 3. Any change in basic investment philosophy by the Manager. 4. Failure to attain a 60% vote of confidence by the Board members. SeptemberMay 20165 10 This shall in no way limit or diminish the Board’s right to terminate an investment manager at any time for any reason. XXI. FLORIDA STATUTES AND APPLICABLE CITY ORDINANCES If at any time this document is found to be in conflict with Florida Statutes, or the applicable City Ordinances, the Statute and Ordinances shall prevail. XXII. REVIEW AND AMENDMENTS It is intended that the Investment Manager and Board review this document periodically. In this regard, the Investment Manager’s interest in consistency in these matters is recognized and will be taken into account when changes are being considered. If at any time the Investment Manager feels that the specific objectives herein cannot be met, or the guidelines constrict performance, the Board should be so notified in writing. By the initial and continuing acceptance of this Investment Policy Statement, the Investment Manager accepts the provisions of this document. For HighlandICC Capital Management Date SeptemberMay 20165 11 For American Realty Advisors Date For Rhumbline Advisors Date For the Pension Board of Palm Beach Gardens Police Date Snapshot Report PBG Police Aggregate 9/30/2016 Prepared for Prepared by John McCann The Bogdahn Group Orlando, FL PBG Police Aggregate Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 53,480,427.00 S&P 500 TR USD USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.00 0.00 US Stock 85.51 99.06 Non US Stock 14.47 0.39 Bond 0.00 0.00 Other 0.02 0.55 Not Classified 0.00 0.00 Total 100.00 100.00 0-10 10-25 25-50 >50 17 Value 19 Core 20 Growth L a r g e 6 7 7 M i d 8 9 8 S m a l l Total Stock Holdings 2412 Not Classified % 0.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 23.86 28.22 Cons Defensive 7.92 10.01 Healthcare 12.80 14.91 Utilities 3.15 3.30 Sens 39.04 41.44 Comm Svcs 3.11 4.17 Energy 4.70 7.32 Industrials 13.75 10.84 Technology 17.48 19.11 Cycl 37.09 30.34 Basic Matls 4.78 2.76 Cons Cyclical 13.27 10.87 Financial Svcs 14.22 14.24 Real Estate 4.82 2.47 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 85.55 99.61 North America 85.52 99.61 Central/Latin 0.03 0.00 Greater Asia 5.25 0.06 Japan 3.44 0.00 Australasia 1.07 0.00 Asia Developed 0.67 0.06 Asia emerging 0.07 0.00 Greater Europe 9.20 0.33 United Kingdom 2.68 0.00 Europe Developed 6.43 0.33 Europe Emerging 0.00 0.00 Africa/Middle East 0.10 0.00 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 3,328,772.02 0.0 665.8 1,331.5 1,997.3 2,663.0 3,328.8K 201620061996198619761966 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 5.21 13.82 10.35 16.77 9.31 Benchmark Return 3.85 15.43 11.16 16.37 7.24 +/- Benchmark Return 1.36 -1.61 -0.82 0.40 2.07 Time Period Return Best %Worst % 3 Months 31.77 (03/09-05/09)-33.76 (09/08-11/08) 1 Year 65.60 (03/09-02/10)-43.56 (03/08-02/09) 3 Years 32.18 (04/03-03/06)-12.04 (03/06-02/09) Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 5 holdings out of 5 Ticker Type Holding Value % Assets PBG Police Rhumbline S&P 500 CF 19,551,948.00 36.56 PBG Police Rhumbline S&P 600 CF 9,464,523.00 17.70 PBG Police Rhumbline S&P 400 CF 9,174,798.00 17.16 PBG Police Rhumbline International CF 7,722,343.00 14.44 PBG Police Highland Capital CF 7,566,815.00 14.15 Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 2 of 4 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Aggregate Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 53,480,427.00 S&P 500 TR USD USD Risk Analysis Risk/Reward Scatterplot Portfolio Holding B-mark 3-Year Mean 3-Year Standard Deviation 10.0 10.2 10.4 10.6 10.8 11.0 11.2 11.4 11.6 11.8 12.0 12.2 12.4 12.6 12.8 -5.00 -1.80 1.40 4.60 7.80 11.00 14.20 17.40 20.60 23.80 27.00 Performance History Graph Portfolio Quarterly Return +/- Benchmark in % 1996 2001 2006 2011 2016 -8.0 -6.0 -4.0 -2.0 B-mark 2.0 4.0 6.0 8.0 10.0 12.0 Risk and Return Statistics 3 Yr 5 Yr 10 Yr Portfolio B-mark Portfolio B-mark Portfolio B-mark Standard Deviation Mean Sharpe Ratio 11.61 10.35 0.90 12.49 16.77 1.30 17.12 9.31 0.56 10.83 11.16 1.02 11.12 16.37 1.42 15.25 7.24 0.48 MPT Statistics 3 Yr 5 Yr 10 Yr Alpha Beta R-squared -0.90 1.02 90.66 -0.25 1.05 87.10 1.66 1.08 92.53 Fundamental Analysis Market Maturity Geometric Avg Capitalization (Mil)Valuation Multiples Credit QualityPortfolioB-mark % of Bonds % of StocksPortfolioB-mark Developed Markets Emerging Markets Not Available 99.93 0.07 0.00 100.00 0.00 0.00 Portfolio Benchmark 20,114.95 78,312.52 Price/Earnings Price/Book Price/Sales Price/Cash Flow 19.86 2.38 1.40 10.94 19.64 2.76 1.95 12.38 Type Weightings % of Stocks B-markPortfolio High Yield 6.25 7.71 Distressed 2.67 2.55 Hard Asset 9.32 7.07 Cyclical 43.73 38.49 Slow Growth 16.71 21.47 Classic Growth 6.97 6.95 Aggressive Growth 8.53 9.86 Speculative Growth 2.55 1.70 Not Available 3.27 4.21 %0 5 10 15 20 25 30 35 40 45 50 Profitability Portfolio B-mark% of Stocks 2014 2015 2015 Net Margin ROE ROA Debt/Capital __ __ __ __ __ __ __ __ 13.36 20.48 7.33 40.30 AAA AA A BBB BB B Below B NR/NA __ __ __ __ __ __ __ __ Interest Rate Risk Portfolio Maturity Duration (total portfolio) Avg Credit Quality 0.00 0.00 -Fund Statistics Potential Cap Gains Exposure Avg Net Exp Ratio Avg Gross Exp Ratio 0.00__ __ Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 3 of 4 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Aggregate Portfolio Value Benchmark Account Number Report Currency 53,480,427.00 S&P 500 TR USD USD Type HoldingsDate % ofAssets HoldingValue 7-dayYield 1 YrRet %3 YrRet %5 YrRet %10 YrRet %Max FrontLoad %Max BackLoad % CF 36.56 19,551,948.00 __ __ __ __ __ __ __ CF 17.70 9,464,523.00 __ __ __ __ __ __ __ CF 17.16 9,174,798.00 __ __ __ __ __ __ __ CF 14.44 7,722,343.00 __3.48 -2.18 4.38 -1.02 __ __ Portfolio Snapshot Non-Load Adjustment Returns Total 5 holdings as of 9/30/2016 PBG Police Rhumbline S&P 500 PBG Police Rhumbline S&P 600 PBG Police Rhumbline S&P 400 PBG Police Rhumbline International PBG Police Highland Capital CF 14.15 7,566,815.00 __22.46 23.57 30.00 20.31 __ __ Performance DisclosureThe performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment willfluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than returndata quoted herein. For information current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 4 of 4 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © Morningstar DirectSM | Print Date: 11/28/2016 Page 3 of 5 PBG Police Aggregate Portfolio Aggregation Data as of Currency Risk-Free Rate Benchmark10/31/2016 USD USTREAS T-Bill Auction Ave 3 Mon S&P 500 TR USD Common Equity Holdings Analysis (Top 25) Name Tick/ISIN % Investment Mkt Value % Portfolio Mkt Value Market Cap (mil) Style Box Sector Apple Inc AAPL 1.95 596,099.27 4 Large Blend a Technology PBG Police Rhumbline S&P 500 3.25 1.19 4 Large Blend PBG Police Highland Capital 5.35 0.76 7 Large Growth Microsoft Corp MSFT 1.36 470,641.97 4 Large Blend a Technology PBG Police Rhumbline S&P 500 2.39 0.88 4 Large Blend PBG Police Highland Capital 3.45 0.49 7 Large Growth Amazon.com Inc AMZN 1.24 370,805.70 7 Large Growth t Consumer Cyclical PBG Police Rhumbline S&P 500 1.76 0.64 4 Large Blend PBG Police Highland Capital 4.19 0.59 7 Large Growth Facebook Inc A FB 1.13 346,955.32 7 Large Growth a Technology PBG Police Rhumbline S&P 500 1.59 0.58 4 Large Blend PBG Police Highland Capital 3.86 0.55 7 Large Growth Alphabet Inc C GOOG 0.86 524,979.25 7 Large Growth a Technology PBG Police Rhumbline S&P 500 1.23 0.45 4 Large Blend PBG Police Highland Capital 2.94 0.42 7 Large Growth Exxon Mobil Corp XOM 0.71 361,259.92 1 Large Value o Energy PBG Police Rhumbline S&P 500 1.93 0.71 4 Large Blend Johnson & Johnson JNJ 0.70 310,494.29 4 Large Blend d Healthcare PBG Police Rhumbline S&P 500 1.72 0.63 4 Large Blend PBG Police Highland Capital 0.49 0.07 7 Large Growth Alphabet Inc A GOOGL 0.66 537,764.62 7 Large Growth a Technology PBG Police Rhumbline S&P 500 1.26 0.46 4 Large Blend PBG Police Highland Capital 1.40 0.20 7 Large Growth The Home Depot Inc HD 0.65 160,273.44 7 Large Growth t Consumer Cyclical PBG Police Highland Capital 2.42 0.34 7 Large Growth PBG Police Rhumbline S&P 500 0.85 0.31 4 Large Blend Comcast Corp Class A CMCSA 0.59 165,488.29 4 Large Blend i Communication Services PBG Police Rhumbline S&P 500 0.85 0.31 4 Large Blend PBG Police Highland Capital 2.00 0.28 7 Large Growth Walt Disney Co DIS 0.54 157,268.17 4 Large Blend t Consumer Cyclical PBG Police Highland Capital 1.92 0.27 7 Large Growth PBG Police Rhumbline S&P 500 0.73 0.27 4 Large Blend Berkshire Hathaway Inc B BRK.B 0.53 390,081.09 1 Large Value y Financial Services PBG Police Rhumbline S&P 500 1.46 0.53 4 Large Blend Verizon Communications Inc VZ 0.52 206,563.04 1 Large Value i Communication Services PBG Police Rhumbline S&P 500 1.13 0.41 4 Large Blend PBG Police Highland Capital 0.76 0.11 7 Large Growth General Electric Co GE 0.52 278,130.50 4 Large Blend p Industrials PBG Police Rhumbline S&P 500 1.42 0.52 4 Large Blend © Morningstar 2016. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its contentproviders; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arisingfrom any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.ß® Morningstar DirectSM | Print Date: 11/28/2016 Page 4 of 5 PBG Police Aggregate Portfolio Aggregation Data as of Currency Risk-Free Rate Benchmark10/31/2016 USD USTREAS T-Bill Auction Ave 3 Mon S&P 500 TR USD Common Equity Holdings Analysis (Top 25) Name Tick/ISIN % Investment Mkt Value % Portfolio Mkt Value Market Cap (mil) Style Box Sector Intel Corp INTC 0.50 167,950.16 1 Large Value a Technology PBG Police Rhumbline S&P 500 0.95 0.35 4 Large Blend PBG Police Highland Capital 1.10 0.16 7 Large Growth Amgen Inc AMGN 0.49 108,188.65 4 Large Blend d Healthcare PBG Police Highland Capital 1.73 0.25 7 Large Growth PBG Police Rhumbline S&P 500 0.67 0.24 4 Large Blend AT&T Inc T 0.49 240,788.61 1 Large Value i Communication Services PBG Police Rhumbline S&P 500 1.33 0.49 4 Large Blend JPMorgan Chase & Co JPM 0.47 282,074.57 1 Large Value y Financial Services PBG Police Rhumbline S&P 500 1.28 0.47 4 Large Blend Procter & Gamble Co PG 0.47 223,338.34 4 Large Blend s Consumer Defensive PBG Police Rhumbline S&P 500 1.28 0.47 4 Large Blend UnitedHealth Group Inc UNH 0.47 145,447.04 7 Large Growth d Healthcare PBG Police Rhumbline S&P 500 0.71 0.26 4 Large Blend PBG Police Highland Capital 1.46 0.21 7 Large Growth Visa Inc Class A V 0.45 164,641.13 7 Large Growth y Financial Services PBG Police Rhumbline S&P 500 0.83 0.30 4 Large Blend PBG Police Highland Capital 1.03 0.15 7 Large Growth CVS Health Corp CVS 0.44 78,980.49 4 Large Blend d Healthcare PBG Police Highland Capital 1.80 0.25 7 Large Growth PBG Police Rhumbline S&P 500 0.51 0.19 4 Large Blend Pfizer Inc PFE 0.40 192,306.17 1 Large Value d Healthcare PBG Police Rhumbline S&P 500 1.10 0.40 4 Large Blend Wells Fargo & Co WFC 0.39 264,273.59 1 Large Value y Financial Services PBG Police Rhumbline S&P 500 1.07 0.39 4 Large Blend Coca-Cola Co KO 0.39 179,117.20 1 Large Value s Consumer Defensive PBG Police Rhumbline S&P 500 0.88 0.32 4 Large Blend PBG Police Highland Capital 0.48 0.07 7 Large Growth © Morningstar 2016. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its contentproviders; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arisingfrom any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.ß® PBG Police Highland Capital Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 7,684,735.60 Russell 1000 Growth TR USD USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.00 0.00 US Stock 100.00 99.96 Non US Stock 0.00 0.04 Bond 0.00 0.00 Other 0.00 0.00 Not Classified 0.00 0.00 Total 100.00 100.00 0-10 10-25 25-50 >50 9 Value 27 Core 42 Growth L a r g e 3 10 8 M i d 1 0 1 S m a l l Total Stock Holdings 113 Not Classified % 0.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 25.51 26.71 Cons Defensive 7.70 9.44 Healthcare 17.81 17.21 Utilities 0.00 0.06 Sens 46.16 44.42 Comm Svcs 3.69 4.31 Energy 0.89 0.64 Industrials 14.00 12.60 Technology 27.57 26.87 Cycl 28.33 28.87 Basic Matls 1.44 3.08 Cons Cyclical 18.96 18.51 Financial Svcs 7.07 5.14 Real Estate 0.87 2.13 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 100.00 99.96 North America 100.00 99.96 Central/Latin 0.00 0.00 Greater Asia 0.00 0.04 Japan 0.00 0.00 Australasia 0.00 0.01 Asia Developed 0.00 0.00 Asia emerging 0.00 0.03 Greater Europe 0.00 0.00 United Kingdom 0.00 0.00 Europe Developed 0.00 0.00 Europe Emerging 0.00 0.00 Africa/Middle East 0.00 0.00 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 68,515,318.72 0.0 13,703.1 27,406.1 41,109.2 54,812.3 68,515.3K 201620061996198619761966 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 7.01 22.46 23.57 30.00 20.31 Benchmark Return 4.58 13.76 11.83 16.60 8.85 +/- Benchmark Return 2.43 8.70 11.74 13.40 11.46 Time Period Return Best %Worst % 3 Months 31.20 (03/09-05/09)-31.68 (09/08-11/08) 1 Year 82.29 (03/09-02/10)-37.10 (12/07-11/08) 3 Years 41.30 (03/09-02/12)-6.40 (03/06-02/09) Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 10 holdings out of 113 Ticker Type Holding Value % Assets Apple Inc AAPL ST 411,502.00 5.35 Amazon.com Inc AMZN ST 322,364.35 4.19 Facebook Inc A FB ST 296,816.78 3.86 Microsoft Corp MSFT ST 265,190.40 3.45 Alphabet Inc C GOOG ST 226,191.39 2.94 The Home Depot Inc HD ST 185,813.92 2.42 Comcast Corp Class A CMCSA ST 153,842.46 2.00 Walt Disney Co DIS ST 147,647.40 1.92 CVS Health Corp CVS ST 138,290.46 1.80 Amgen Inc AMGN ST 133,114.38 1.73 Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 1 of 5 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Highland Capital Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 7,684,735.60 Russell 1000 Growth TR USD USD Non-Load Adjustment Returns Total 113 holdings as of 9/30/2016 Type HoldingsDate % ofAssets HoldingValue 7-dayYield 1 YrRet %3 YrRet %5 YrRet %10 YrRet %Max FrontLoad %Max BackLoad % Apple Inc ST 5.35 411,502.00 __4.65 20.71 17.72 27.32 ____ Amazon.com Inc ST 4.19 322,364.35 __63.57 38.87 31.10 38.55 ____ Facebook Inc A ST 3.86 296,816.78 __42.68 36.68 ________ Microsoft Corp ST 3.45 265,190.40 __33.66 23.37 21.61 10.33 ____ Alphabet Inc C ST 2.94 226,191.39 __27.76 __________ The Home Depot Inc ST 2.42 185,813.92 __13.67 21.74 34.19 16.50 ____ Comcast Corp Class A ST 2.00 153,842.46 __18.64 15.49 28.21 12.09 ____ Walt Disney Co ST 1.92 147,647.40 __-7.85 14.55 27.08 13.14 ____ CVS Health Corp ST 1.80 138,290.46 __-6.21 17.94 23.35 12.07 ____ Amgen Inc ST 1.73 133,114.38 __23.54 16.60 27.37 9.98 ____ NVIDIA Corp ST 1.67 128,612.04 __181.22 66.50 42.48 14.05 ____ UnitedHealth Group Inc ST 1.46 112,280.00 __22.75 27.07 26.82 12.16 ____ Becton, Dickinson and Co ST 1.42 109,275.84 __37.69 23.71 21.99 11.81 ____ Honeywell International Inc ST 1.41 108,661.88 __25.85 14.30 24.29 13.76 ____ Alphabet Inc A ST 1.40 107,744.04 __25.96 23.53 26.24 15.18 ____ Adobe Systems Inc ST 1.24 95,623.74 __32.01 27.85 35.04 11.22 ____ FedEx Corp ST 1.18 91,008.28 __22.31 15.96 21.62 5.47 ____ Time Warner Inc ST 1.14 87,332.17 __18.31 9.63 24.87 10.10 ____ Southwest Airlines Co ST 1.14 87,230.27 __3.12 39.85 38.02 9.32 ____ AbbVie Inc ST 1.13 86,595.11 __20.25 15.89 ________ Mastercard Inc A ST 1.12 86,300.96 __13.80 15.55 26.90 31.16 ____ Intel Corp ST 1.10 84,899.75 __29.20 21.80 15.91 9.63 ____ Lincoln National Corp ST 1.06 81,745.20 __1.14 5.48 26.51 -1.03 ____ Cognizant Technology Solutions Corp A ST 1.04 79,723.41 __-23.80 5.13 8.76 9.94 ____ Spectrum Brands Holdings Inc ST 1.03 79,447.13 __52.51 29.67 44.61 ______ Delta Air Lines Inc ST 1.03 79,152.96 __-11.02 19.84 40.27 ______ Visa Inc Class A ST 1.03 78,895.80 __19.58 20.94 31.99 ______ Express Scripts Holding Co ST 0.98 74,973.39 __-12.88 4.50 13.73 14.10 ____ United Rentals Inc ST 0.98 74,957.95 __30.71 10.43 36.05 12.94 ____ Altria Group Inc ST 0.96 73,599.72 __20.54 27.81 24.33 19.69 ____ Constellation Brands Inc A ST 0.94 72,589.64 __34.23 43.30 56.49 19.36 ____ Ingredion Inc ST 0.93 71,320.16 __54.87 28.78 30.15 17.11 ____ Whirlpool Corp ST 0.92 70,377.44 __12.63 5.51 29.37 9.40 ____ Huntington Ingalls Industries Inc ST 0.91 70,266.36 __45.16 33.10 45.78 ______ Starbucks Corp ST 0.90 69,407.48 __-3.42 13.59 25.48 13.32 ____ ONEOK Inc ST 0.89 68,605.65 __71.56 9.85 17.80 16.96 ____ Bristol-Myers Squibb Company ST 0.89 68,047.04 __-7.39 7.86 14.86 12.44 ____ HCA Holdings Inc ST 0.87 66,932.55 __-2.24 20.94 36.15 ______ Tyson Foods Inc Class A ST 0.86 66,157.62 __74.93 39.44 35.20 17.96 ____ Broadridge Financial Solutions Inc ST 0.83 63,587.02 __24.96 31.54 30.60 ______ Biogen Inc ST 0.81 62,292.97 __7.27 9.14 27.43 21.49 ____ Broadcom Ltd ST 0.81 62,279.72 __39.72 61.03 41.64 ______ Intercontinental Exchange Inc ST 0.80 61,683.44 __16.13 15.54 18.80 14.06 ____ PayPal Holdings Inc ST 0.79 60,881.42 __31.99 __________ NVR Inc ST 0.79 60,675.19 __7.52 21.28 22.11 11.85 ____ Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 3 of 5 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Highland Capital Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 7,684,735.60 Russell 1000 Growth TR USD USD Non-Load Adjustment Returns Total 113 holdings as of 9/30/2016 Type HoldingsDate % ofAssets HoldingValue 7-dayYield 1 YrRet %3 YrRet %5 YrRet %10 YrRet %Max FrontLoad %Max BackLoad % Eli Lilly and Co ST 0.78 60,195.00 __-1.53 20.26 20.87 7.80 ____ Sherwin-Williams Co ST 0.78 59,758.56 __25.60 16.16 31.54 19.31 ____ Expedia Inc ST 0.77 59,410.48 __0.05 32.19 36.82 23.16 ____ AmTrust Financial Services Inc ST 0.77 58,891.85 __-13.36 13.22 25.94 ______ Gilead Sciences Inc ST 0.76 58,786.16 __-17.76 8.99 33.22 16.82 ____ Verizon Communications Inc ST 0.76 58,685.42 __24.89 8.35 12.10 9.14 ____ McKesson Corp ST 0.72 55,694.50 __-9.31 9.72 18.85 13.04 ____ Toro Co ST 0.70 53,959.68 __34.70 21.58 32.44 17.77 ____ Alaska Air Group Inc ST 0.69 53,017.30 __-15.90 29.79 37.31 21.86 ____ Thor Industries Inc ST 0.68 52,175.20 __66.85 16.24 34.66 10.42 ____ TransDigm Group Inc ST 0.67 51,752.48 __36.11 33.81 38.74 35.29 ____ PPG Industries Inc ST 0.66 50,543.04 __19.60 8.81 25.97 14.79 ____ The Middleby Corp ST 0.65 50,313.34 __17.52 21.08 39.40 25.32 ____ Arthur J. Gallagher & Co ST 0.63 48,529.98 __27.38 8.66 18.03 11.25 ____ Boeing Co ST 0.63 48,085.10 __3.92 6.61 19.76 7.93 ____ The Kraft Heinz Co ST 0.62 47,798.34 __31.54 __________ CDW Corp ST 0.62 47,787.85 __13.06 27.05 ________ Global Payments Inc ST 0.61 46,977.12 __33.89 44.44 30.77 13.49 ____ Marsh & McLennan Companies Inc ST 0.60 46,469.75 __31.57 18.06 23.26 12.10 ____ The Priceline Group Inc ST 0.59 45,616.19 __18.97 13.33 26.77 44.61 ____ S&P Global Inc ST 0.59 45,181.92 __48.31 26.22 28.56 10.87 ____ Charles River Laboratories International Inc ST 0.58 44,420.22 __31.20 21.68 23.83 6.74 ____ Hasbro Inc ST 0.57 44,107.48 __12.68 22.33 23.28 16.53 ____ Centene Corp ST 0.56 43,323.12 __23.47 27.93 36.11 23.34 ____ Lockheed Martin Corp ST 0.56 42,909.88 __19.02 27.28 31.76 14.37 ____ Electronic Arts Inc ST 0.56 42,785.40 __26.05 49.52 33.09 4.34 ____ Mohawk Industries Inc ST 0.56 42,672.42 __10.20 15.43 36.09 10.41 ____ PepsiCo Inc ST 0.55 42,093.99 __18.61 14.19 15.23 8.22 ____ Zoetis Inc ST 0.54 41,555.99 __27.31 19.63 ________ Newell Brands Inc ST 0.54 41,180.12 __34.86 26.52 37.47 8.99 ____ Accenture PLC A ST 0.53 41,049.12 __26.83 21.07 20.97 16.68 ____ Cardinal Health Inc ST 0.53 40,559.40 __3.24 16.39 15.53 6.71 ____ Sabre Corp ST 0.52 40,269.22 __5.47 __________ International Business Machines Corp ST 0.52 40,189.05 __13.70 -2.12 0.56 9.12 ____ Charter Communications Inc A ST 0.52 39,685.59 __38.82 21.90 39.12 ______ Cigna Corp ST 0.52 39,617.28 __-3.45 19.29 25.52 12.99 ____ Brinker International Inc ST 0.51 39,234.54 __-1.60 10.01 22.08 9.14 ____ Celgene Corp ST 0.51 38,989.69 __-3.37 10.69 27.56 17.05 ____ Lowe's Companies Inc ST 0.51 38,848.98 __6.42 16.69 32.41 11.70 ____ Regeneron Pharmaceuticals Inc ST 0.50 38,593.92 __-13.57 8.72 47.19 38.31 ____ Johnson & Johnson ST 0.49 37,801.60 __30.17 14.04 16.66 9.47 ____ Nike Inc B ST 0.48 37,170.90 __-13.41 14.47 21.27 18.68 ____ Darden Restaurants Inc ST 0.48 37,098.60 __3.55 18.42 14.21 8.27 ____ Coca-Cola Co ST 0.48 36,776.08 __8.82 6.98 7.73 9.75 ____ Activision Blizzard Inc ST 0.46 35,395.70 __44.51 39.76 31.49 20.13 ____ Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 4 of 5 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Highland Capital Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 7,684,735.60 Russell 1000 Growth TR USD USD Non-Load Adjustment Returns Total 113 holdings as of 9/30/2016 Type HoldingsDate % ofAssets HoldingValue 7-dayYield 1 YrRet %3 YrRet %5 YrRet %10 YrRet %Max FrontLoad %Max BackLoad % Salesforce.com Inc ST 0.45 34,737.71 __2.74 11.17 20.08 23.04 ____ CBRE Group Inc ST 0.45 34,471.36 __-12.56 6.55 15.76 1.30 ____ Citrix Systems Inc ST 0.44 33,832.34 __23.01 6.47 9.34 8.94 ____ Danaher Corp ST 0.44 33,707.70 __17.50 13.42 19.33 11.55 ____ Simon Property Group Inc ST 0.42 32,293.56 __16.42 17.77 18.47 13.14 ____ Netflix Inc ST 0.41 31,536.00 __-4.56 30.67 43.53 40.64 ____ CoreLogic Inc ST 0.41 31,297.56 __5.35 13.18 29.74 5.93 ____ The Kroger Co ST 0.40 30,659.44 __-16.71 15.19 23.91 11.56 ____ Dollar General Corp ST 0.39 30,025.71 __-2.20 8.18 13.61 ______ Twitter Inc ST 0.33 25,331.95 __-14.44 __________ Booz Allen Hamilton Holding Corp ST 0.33 25,129.95 __23.00 26.13 34.33 ______ Gentex Corp ST 0.32 24,900.08 __15.78 13.40 10.26 12.08 ____ Lear Corp ST 0.32 24,850.10 __12.61 20.34 24.41 ______ Scripps Networks Interactive Inc A ST 0.29 22,221.50 __31.16 -5.45 12.58 ______ Credit Acceptance Corp ST 0.26 19,905.93 __2.13 21.97 25.59 21.08 ____ Ulta Salon Cosmetics & Fragrance Inc ST 0.24 18,800.42 __45.69 25.83 31.05 ______ McDonald's Corp ST 0.24 18,457.60 __20.69 9.79 9.07 15.14 ____ 3M Co ST 0.23 17,623.00 __27.62 16.71 22.70 11.86 ____ AmerisourceBergen Corp ST 0.23 17,610.04 __-13.61 11.24 18.40 15.15 ____ Fortive Corp ST 0.14 10,943.50 ______________ Palo Alto Networks Inc ST 0.10 7,807.17 __-7.37 51.50 ________ Hanesbrands Inc ST 0.10 7,600.25 __-11.41 19.08 33.48 16.76 ____ American Airlines Group Inc ST 0.01 1,098.30 __-4.70 50.41 36.42 -4.91 ____ Performance DisclosureThe performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment willfluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than returndata quoted herein. For information current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. Investment start 1/2/1962 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 5 of 5 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Rhumbline S&P 500 Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 19,551,948.00 S&P 500 TR USD USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.00 0.00 US Stock 99.60 99.06 Non US Stock 0.39 0.39 Bond 0.00 0.00 Other 0.00 0.55 Not Classified 0.00 0.00 Total 100.00 100.00 0-10 10-25 25-50 >50 29 Value 29 Core 27 Growth L a r g e 5 5 4 M i d 0 0 0 S m a l l Total Stock Holdings 503 Not Classified % 1.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 28.04 28.22 Cons Defensive 9.96 10.01 Healthcare 14.79 14.91 Utilities 3.29 3.30 Sens 41.24 41.44 Comm Svcs 4.23 4.17 Energy 7.26 7.32 Industrials 10.73 10.84 Technology 19.01 19.11 Cycl 30.71 30.34 Basic Matls 2.75 2.76 Cons Cyclical 11.27 10.87 Financial Svcs 14.24 14.24 Real Estate 2.46 2.47 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 99.61 99.61 North America 99.61 99.61 Central/Latin 0.00 0.00 Greater Asia 0.06 0.06 Japan 0.00 0.00 Australasia 0.00 0.00 Asia Developed 0.06 0.06 Asia emerging 0.00 0.00 Greater Europe 0.33 0.33 United Kingdom 0.00 0.00 Europe Developed 0.33 0.33 Europe Emerging 0.00 0.00 Africa/Middle East 0.00 0.00 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 10,639.33 0.0 2.1 4.3 6.4 8.5 10.6K 09/201608/201607/201606/201605/201604/201603/2016 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 3.86 ________ Benchmark Return 3.85 15.43 11.16 16.37 7.24 +/- Benchmark Return 0.00 ________ Time Period Return Best %Worst % 3 Months 5.79 (05/16-07/16)2.44 (04/16-06/16) 1 Year -- (05/16-07/16) 3 Years -- Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 1 holdings out of 1 Ticker Type Holding Value % Assets RhumbLine S&P 500 Pooled Index SA 19,551,948.00 100.00 Investment start 3/31/2016 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 1 of 3 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Rhumbline S&P 400 Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 9,174,798.00 S&P MidCap 400 TR USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.00 0.00 US Stock 99.83 99.83 Non US Stock 0.18 0.18 Bond 0.00 0.00 Other 0.00 0.00 Not Classified 0.00 0.00 Total 100.00 100.00 0-10 10-25 25-50 >50 0 Value 0 Core 0 Growth L a r g e 17 21 24 M i d 16 15 8 S m a l l Total Stock Holdings 393 Not Classified % 0.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 17.43 17.49 Cons Defensive 4.59 4.58 Healthcare 8.01 7.99 Utilities 4.84 4.92 Sens 37.59 37.63 Comm Svcs 0.53 0.53 Energy 4.28 4.27 Industrials 16.84 16.81 Technology 15.94 16.02 Cycl 44.97 44.88 Basic Matls 5.82 5.81 Cons Cyclical 13.39 13.31 Financial Svcs 14.13 14.10 Real Estate 11.63 11.66 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 99.83 99.83 North America 99.83 99.83 Central/Latin 0.00 0.00 Greater Asia 0.00 0.00 Japan 0.00 0.00 Australasia 0.00 0.00 Asia Developed 0.00 0.00 Asia emerging 0.00 0.00 Greater Europe 0.18 0.18 United Kingdom 0.18 0.18 Europe Developed 0.00 0.00 Europe Emerging 0.00 0.00 Africa/Middle East 0.00 0.00 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 10,824.61 0.0 2.2 4.4 6.5 8.7 10.9K 09/201608/201607/201606/201605/201604/201603/2016 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 4.12 ________ Benchmark Return 4.14 15.33 9.35 16.50 9.11 +/- Benchmark Return -0.02 ________ Time Period Return Best %Worst % 3 Months 7.13 (05/16-07/16)3.96 (04/16-06/16) 1 Year -- (05/16-07/16) 3 Years -- Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 1 holdings out of 1 Ticker Type Holding Value % Assets RhumbLine S&P 400 Mid-Cap Pooled Index SA 9,174,798.00 100.00 Investment start 3/31/2016 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 1 of 3 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Rhumbline S&P 600 Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 9,464,523.00 S&P SmallCap 600 TR USD USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.00 0.00 US Stock 99.70 97.83 Non US Stock 0.30 0.30 Bond 0.00 0.00 Other 0.00 1.87 Not Classified 0.00 0.00 Total 100.00 100.00 0-10 10-25 25-50 >50 0 Value 0 Core 0 Growth L a r g e 0 1 0 M i d 27 36 35 S m a l l Total Stock Holdings 590 Not Classified % 1.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 17.06 17.25 Cons Defensive 3.06 3.13 Healthcare 10.61 10.66 Utilities 3.40 3.45 Sens 38.16 38.06 Comm Svcs 1.21 1.13 Energy 2.63 2.68 Industrials 17.56 17.55 Technology 16.76 16.70 Cycl 44.78 44.69 Basic Matls 8.01 7.90 Cons Cyclical 13.89 14.10 Financial Svcs 16.04 15.62 Real Estate 6.85 7.07 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 99.86 99.86 North America 99.70 99.70 Central/Latin 0.16 0.16 Greater Asia 0.14 0.14 Japan 0.00 0.00 Australasia 0.00 0.00 Asia Developed 0.00 0.00 Asia emerging 0.14 0.14 Greater Europe 0.00 0.00 United Kingdom 0.00 0.00 Europe Developed 0.00 0.00 Europe Emerging 0.00 0.00 Africa/Middle East 0.00 0.00 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 11,089.56 0.0 2.2 4.4 6.7 8.9 11.1K 09/201608/201607/201606/201605/201604/201603/2016 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 7.18 ________ Benchmark Return 7.20 18.12 9.04 17.86 8.71 +/- Benchmark Return -0.02 ________ Time Period Return Best %Worst % 3 Months 7.47 (05/16-07/16)3.47 (04/16-06/16) 1 Year -- (05/16-07/16) 3 Years -- Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 1 holdings out of 1 Ticker Type Holding Value % Assets RhumbLine S&P 600 Sm-Cap Pooled Index SA 9,464,523.00 100.00 Investment start 3/31/2016 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 1 of 3 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © PBG Police Rhumbline International Portfolio Snapshot Portfolio Value Benchmark Account Number Report Currency 7,722,343.00 MSCI EAFE PR USD USD Analysis Asset Allocation Equity Investment Style %Fixed-Income Investment Style % Portfolio B-mark Cash 0.01 0.01 US Stock 1.22 0.00 Non US Stock 98.66 0.00 Bond 0.00 0.00 Other 0.10 0.10 Not Classified 0.00 0.00 Total 100.00 0.11 0-10 10-25 25-50 >50 32 Value 31 Core 28 Growth L a r g e 3 3 2 M i d 0 0 0 S m a l l Total Stock Holdings 917 Not Classified % 1.00 0-10 10-25 25-50 >50 0 Ltd 0 Mod 0 Ext H i g h 0 0 0 M e d 0 0 0 L o w Total Bond Holdings 0 Not Classified % 100.00 Stock Analysis Stock Sectors Defe n S e n s Cycl Benchmark Portfolio Portfolio %Bmark % Defen 27.65 27.65 Cons Defensive 12.90 12.90 Healthcare 11.20 11.20 Utilities 3.55 3.55 Sens 29.29 29.29 Comm Svcs 5.06 5.06 Energy 5.01 5.01 Industrials 12.82 12.82 Technology 6.42 6.42 Cycl 43.06 43.06 Basic Matls 8.04 8.04 Cons Cyclical 11.86 11.86 Financial Svcs 19.09 19.09 Real Estate 4.06 4.06 Not Classified 0.00 0.00 Stock Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio %Bmark % Americas 1.22 1.22 North America 1.22 1.22 Central/Latin 0.00 0.00 Greater Asia 36.04 36.04 Japan 23.83 23.83 Australasia 7.40 7.41 Asia Developed 4.51 4.51 Asia emerging 0.29 0.30 Greater Europe 62.74 62.74 United Kingdom 18.35 18.35 Europe Developed 43.71 43.71 Europe Emerging 0.00 0.00 Africa/Middle East 0.67 0.68 Not Classified 0.00 0.00 Performance Investment Growth Chart PortfolioBenchmark Initial Mkt Value: 10,000.00Final Mkt Value: 170,169.20 0.0 47.8 95.5 143.3 191.1 238.9K 20162006199619861976 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 5.80 3.48 -2.18 4.38 -1.02 Benchmark Return 5.80 3.48 -2.18 4.38 -1.02 +/- Benchmark Return 0.00 0.00 0.00 0.00 0.00 Time Period Return Best %Worst % 3 Months 32.04 (03/09-05/09)-35.85 (09/08-11/08) 1 Year 53.94 (04/03-03/04)-51.81 (03/08-02/09) 3 Years 28.14 (04/03-03/06)-17.50 (03/06-02/09) Portfolio Yield Yield % Trailing 12 Month __ Performance Disclosure The performance data quoted represents past performance and does not guaranteefuture results. The investment return and principal value of an investment will fluctuatethus an investor's shares, when redeemed, may be worth more or less than their originalcost. Current performance may be lower or higher than return data quoted herein. Forinformation current to the most recent month-end, please visithttp://www.morningstaradvisor.com/familyinfo.asp Holdings Top 1 holdings out of 1 Ticker Type Holding Value % Assets MSCI EAFE PR USD XI 7,722,343.00 100.00 Investment start 12/31/1969 | Investment end 9/30/2016| Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.Page 1 of 3 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully. © Pension Resource Centers Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Meeting Check Number Date Payee and Description Amount 2801 October 1, 2016 City of Palm Beach Gardens $27,564.51 Retiree Insurance 2802 October 3, 2016 Pension Resource Center $2,600.36 Administrative Fee - Oct 2016 2803 October 3, 2016 Klausner, Kaufman, Jensen & Levinson $67.50 Legal Services Rendered through 8-30-16 2804 October 3, 2016 Marc Glass $435.56 Travel Expense Reimbursement - FPPTA Meetings 2805 November 1, 2016 City of Palm Beach Gardens $26,634.15 Retiree Insurance 2806 November 3, 2016 Pension Resource Center $2,609.20 Administrative Fee - Nov 2016 2807 November 3, 2016 Klausner, Kaufman, Jensen & Levinson $3,211.25 Legal Services Rendered through 9-30-16 2808 November 3, 2016 The Bogdahn Group $5,374.95 Investment Consulting Fee 2809 November 3, 2016 FPTTA $600.00 2017 Renewal Fee 2810 November 3, 2016 Rhumbline Advisers $6,062.00 Investment Advisory Fee - 2rd Quarter 2016 2811 November 3, 2016 Rhumbline Advisers $410.00 Investment Advisory Fee - 3rd Quarter 2016 2812 November 3, 2016 Highland Capital Management, LLC $26,603.30 Management Fee - 3rd Quarter 2016 Total: $102,172.78 Paid by Custodian Salem Trust $5,374.12 3rd Quarter 2016 - Management Fee Total $107,546.90 Chair___________________________ Secretary___________________________ Date_______________________________