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HomeMy WebLinkAboutAgenda Police Pension 030917Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF MARCH 9, 2017 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 • Marc Glass, Trustee • Greg Mull, Trustee 3. 9/30/2016 Financial Statement Presentation - Eric Leventhal (KSDT) 4. 9/30/2016 Actuarial Valuation Report - Pete Strong (GRS) 5. Investment Manager Report - Highland Capital (Steve Stack) 6. Investment Consultant Report - AndCo Consulting (John McCann) • 12/31/16 Quarterly Performance Group • Rhumbline Letter 7. Attorney Report - KKJ&L (Bonni Jensen) • Memo - New Online Annual Report Requirement • Memo - Pending FRS Mortality Table • Share Account Amendment 8. Administrator Report - Resource Centers (Audrey Ross) 9. Approval of Minutes • December 2, 2016 Regular Meeting 10. Disbursements 11. Benefit Approvals 12. Financial Statements 13.Other Business • Salem Trust Memo 14. Public Comments 15. Adjourn Next Meeting Date: Scheduled for Thursday June 1, 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. Investment Performance Review Period Ending December 31, 2016 Palm Beach Gardens Police Pension Plan AndCo Consulting 1 (844) 44-ANDCO I AndCoConsultingxom Formerly The Bogdahn Group Table Of Contents Market Environment Page 1 Compliance Report Page 10 Asset Allocation Compliance Page 11 Asset Allocation Pie Chart Page 13 Asset Allocation & Performance Trailing Periods (gross) Page 15 Asset Allocation & Performance Trailing Periods (net) Page 17 Asset Allocation & Performance Fiscal Year Periods (gross) Page 19 Asset Allocation & Performance Fiscal Year Periods (net) Page 21 Historical Rolling Performance Total Fund Page 23 Historical Rolling Performance Total Fund Policy Page 24 Total Fund Composite Returns Based Analysis Page 25 Rhumbline S&P 500 Equity Returns Based Analysis Page 28 Rhumbline S&P 400 Equity Returns Based Analysis Page 31 Rhumbline S&P 600 Equity Returns Based Analysis Page 34 Highland Capital Equity Returns Based Analysis Page 37 Highland Capital Fixed Income Returns Based Analysis Page 40 Oppenheimer International Fixed Income Returns Based Analysis Page 43 American Realty Returns Based Analysis Page 45 Benchmark History Page 47 Dreyfus International Bond A Performance Review Page 49 Oppenheimer International Bond A Performance Review Page 51 Definitions & Disclosure Pages Page 53 AndCo Firm Rebrand On the cover of your standard quarterly report, and on all documents we will be sending to you going forward, you will notice your name comes before ours. That is not by accident. Everything from the services we provide to how we are structured as an organization is designed to ensure that you, our client, comes first. We take our role as an independent institutional consulting firm and plan fiduciary very seriously, and we believe this approach and philosophy adds real value to our clients. To ensure that the client always comes first in the service equation and that our fiduciary responsibility is never compromised, the important principles of independence, objectivity and transparency are embodied in our mission and vision statements and define who we are as an organization. They are engrained in our culture and corporate values and used to guide our actions every day. Over the years, the investment environment has grown more complex and we've seen our staff grow and our expertise and services advance to serve our expanding clientele. To strengthen business continuity and meet the needs of our clients, we recently began a program to broaden employee ownership of our firm. Inherently, as we thought about our mission (To represent the sole interest of our clients by redefining independence), vision (To be a transformational organization viewed as the leader in our industry), and the passion behind our service culture, we wanted to do something significant that would better reflect who we are as an organization and how we never compromise our client -first mentality and service philosophy. Why a Company Rebrand? After more than a decade of growth and original brand equity, why would a company rebrand now? Though client -first consulting has been a cornerstone of our company since its inception, with the milestone of transitioning majority ownership from our founder to the firm's next generation of leadership, it became the perfect opportunity to reintroduce ourselves to the world as AndCo. We have always believed the assets of our firm were the collective body of individuals working together to serve our clients. It has always been bigger than one or even a handful of people. We feel this rebrand is a better reflection of this belief and conviction along with our mission and vision. Our team members could work at other places but they choose to work at AndCo because they believe this approach is better for clients. Business will continue as usual, as the leadership and team you have come to know and trust will not be impacted by this rebrand. Why AndCo? As AndCo, we want your first impression to be our commitment to client -first consulting. Our promise to you spans from our very foundation up to the name on our building. Most importantly, this company rebrand sets the stage for the future of our firm, and your place in it. At AndCo, it is always: r` Our Clients Page 1 ■ Broad asset class returns were mixed for the 4th quarter. Domestic equity indices posted positive performance for the quarter, while broad international equity and fixed income benchmarks were negative for the period. The quarter's investment cycle was dominated first by the U.S. presidential election, and then by the largely anticipated Federal Reserve (Fed) interest rate hike in December. The uncertainty that drove equity returns lower during the first half of the quarter gave way to a string of positive macroeconomic data and a Trump victory that drove equity benchmarks, particularly in the U.S., higher through the remainder of the quarter. Trump's platform of strengthening infrastructure, deregulation, and lower personal and corporate taxes drove expectations higher for both domestic growth and inflation. The broad market Russell 3000 Index returned 4.2% for the quarter. The small cap Russell 2000 Index more than doubled performance of other capitalization indices with a return of 8.8% for the quarter and a strong 21.3% for the trailing one-year period. ■ International equity market benchmarks stumbled during the quarter with the broad market MSCI ACWI ex U.S. Index posting a return of -1.3% for the period in U.S. dollar (USD) terms. Despite the difficult quarter, the broad market index returned a moderate 4.5% for 2016. Developed markets (-0.7%) outperformed emerging markets (-4.2%) for the quarter as developed market economic data was generally positive. However, emerging markets substantially outperformed developed markets for the one-year period with the MSCI Emerging Markets Index returning 11.2% versus a return of 1.0% for the MSCI EAFE Index. ■ The quarter's strong economic backdrop led the Federal Open Market Committee (FOMC) to follow through on investors' expectations and raise short-term interest rates for the first time in 2016. The same events that drove domestic equity markets higher were a headwind for fixed income markets. As a result, the U.S. Treasury yield curve rose dramatically during the quarter with modestly elevated rates at shorter maturities and larger increases in mid - to -long-term maturities. All investment grade benchmarks were negative for the quarter, but the mortgage -backed securities sector was down less than other investment grade sectors due to its shorter duration. Although the 4th quarter took back some of 2016's earlier gains, investment grade benchmarks finished in positive territory for the year. The Bloomberg Barclays Investment Grade Corporate Bond Index was the best performer over the one-year period, advancing a solid 6.1 %. Corporate issues benefited from increased demand for yield which led to credit spread compression, especially in lower quality issues. Quarter Performance MSCI ACWxUS 1.3% MSCI EAFE -0.7% C MSCI Emerg Mkts -4.2% S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3-Month T-Bill -3.0% -3.7% -2.4% -2.0% -2.8% 0.1 % The Market Environment Major Market Index Performance As of December 31, 2016 3.8% 4.2% 3.8% 3.2% 8.8% 1 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays NIBS Barclays Corp IG 3-Month T-Bill 1-Year Performance 4.5% 1.0% 11.2% 12.0% 12.7% 12.1 % 13.8% 21.3% 2.6% 1.0% 4.7% 1.7% 6.1 % 0.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% Source: Investment Metrics Page 2 • U.S. equity index returns were positive across the style and capitalization spectrum for the 4th quarter as well as for calendar year 2016. During the quarter, index returns were driven by encouraging economic data including improvements in GDP growth, employment, housing, and consumer confidence being reported throughout the period. Domestic markets continued to rally after the November presidential election with several domestic indices hitting new highs on expectations resulting from Trump's "market -friendly" policy objectives. While the Fed did increase interest rates in December, the market reaction was relatively tame as the rate hike was widely expected. • Small cap benchmarks posted the quarter's strongest performance for both value and growth issues. At the core, the small cap Russell 2000 Index returned a robust 8.8% for the quarter and a stellar 21.3% for the year. Although still positive, the core large cap Russell 1000 Index returned a lower 3.8% for the quarter and 12.1 % for the year. This dispersion is not totally outside of the norm as small cap stocks generally outperform large cap stocks during "risk -on" market expansions. Interestingly, mid cap stocks finished behind both small and large cap issues for the quarter. This is partially due to the Russell Midcap Index's higher allocations to the real estate and utilities sectors, which were two of the worst performing sectors for the quarter. • Value benchmarks more than doubled their comparable growth benchmarks across the capitalization spectrum for both the quarter and one-year periods. Unlike prior quarters where value index outperformance was driven by exposure to higher yielding "bond proxy" sectors, this quarter's returns were led by exposure to cyclical sectors, particularly financials. Value -style outperformance persists over the one-year period with double-digit returns ranging from an impressive 31.7% for the Russell 2000 Value Index to a still strong 17.3% for the Russell 1000 Value Index. In contrast, growth index performance lagged value results substantially, returning 11.3% and 7.1 % for the Russell 2000 Growth and Russell 1000 Growth respectively. ■ Domestic equity valuations appear stretched relative to historical levels based on Forward Price/Earnings ratios (P/E), with even the cheapest relative indices trading marginally above historical valuations. The large and midcap growth indices have valuation levels near their respective historical averages, while the remaining indices fall between 110% and 137% of their 15-year averages. The Market Environment Domestic Equity Style Index Performance As of December 31, 2016 Quarter Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1.2°/ 1000 Value 1000 Index 1000 Growth 1.0% MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 0.5% 7.2% 4.2% 6.7% 3.8% 5.5% 3.2% 8.8% 3.6% 14.1 % 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1-Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 18.4% 12.7% 7.4% 17.3% 12.1% 7.1 % 20.0% 13.8% 7.3% 21.3% 11.3% 31.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% l i Source: Investment Metrics Page 3 Large cap sector performance spanned a range of nearly 25% during the 4th quarter, with results in five of eleven economic sectors outpacing the Russell 1000 Index return, and eight of eleven sectors posting gains for the period. Financials were the clear leader during the quarter, posting a strong return of 20.4%, which nearly tripled the result of any other sector. Financials benefited from expectations for potential deregulation as well as the impact of higher interest rates on future profitability. The industrials (7.6%) and materials (4.9%) sectors also outperformed for the period as Trump's promise for increased investment in U.S. infrastructure brightened the outlook for both sectors. The energy sector (7.0%) also posted a solid gain for the quarter as oil prices rose following an OPEC agreement to cut supply in November. Prices rose further after several non -OPEC countries indicated they would also reduce production. The real estate and health care sectors were the weakest performers for the quarter, both posting -4.1 % for the period. Real estate and other "bond proxy" sectors such as consumer staples and utilities were impacted by higher interest rates, reducing the demand for more defensive equity issues. The health care sector's weak performance was more symptomatic of the uncertainty surrounding the future of heath care regulation under a new Administration determined to repeal the Affordable Care Act. Despite some divergence in the 41h quarter, sector performance over the one-year period was robust with ten of eleven sectors posting positive results and seven putting up double-digit gains. Small cap sector results were roughly in -line with large caps for the 41h quarter, with five of eleven economic sectors outpacing the Russell 2000 Index return for the quarter and ten of eleven sectors posting positive results for the period. Most of the trends observable in large cap index sector performance also impacted the small cap sectors, but to a larger, positive degree. Similar to large cap issues, higher yielding, defensive sectors lagged the more cyclical, economically sensitive sectors. Over the trailing one-year period the materials, financials, industrials, and energy sectors each posted returns in excess of 30%. The sole negative small cap sector for the year was health care with a return of -7.5%. ■ Using S&P 500 sector valuations as a proxy for the market, Forward P/E ratios for five GICS sectors were below their long-term averages at quarter -end. The technology and health care sectors were trading at the largest discount to their long-term average P/E ratios. In contrast, the energy and utilities sector valuations were the most extended relative to their historical P/E ratios. The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2016 Russell 1000 Consumer Disc (12.6%) Consumer Staples (9.1 %) Energy (7.1 %) Financials (13.8%) Health Care (13.6%) Industrials (10.3%) Info Technology (20.8%) Materials (3.2%) Real Estate (3.8%) Telecom Services (2.5%) Utilities (3.2%) -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Consumer Disc (12.7%) Consumer Staples (3.0%) Energy (3.3%) Financials (18.3%) Health Care (13.2%) Industrials (14.4%) Info Technology (17.6%) Materials (4.8%) Real Estate (8.1 %) Telecom Services (0.7%) Utilities (3.8%) Russell 2000 ■Quarter ❑1-Year i0.4% 21.4% 19.1 % ] 18.9% 23.9% 17.2% 20.0% 25.0% 30.0% ■Quarter 131-Year 7.9% 12.7% 6.4% 23.1 % 18.0% 30.2% 23.4 % 35.1 % -6.2% -7.5% 12.5% 32.4% 5.0% 23.4% 11.4% 48.4% 4.0% 23.2% 9.1 % 20.6% 5.3% 23.2% 15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% l� Source: Morningstar Direct Page 4 The Market Environment Russell 1000Return Apple Inc Top 10 Weighted 2.95% Stocks 1-Qtr 3.0% 1-Year Return 12.5% Sector Information Technology Microsoft Corp 2.19% 8.6% 15.1 % Information Technology Exxon Mobil Corp 1.75% 4.3% 19.9% Energy Johnson & Johnson 1.47% -1.8% 15.3% Health Care JPMorgan Chase & Co 1.46% 30.5% 34.6% Financials Berkshire Hathaway Inc B 1.43% 12.8% 23.4% Financials Amazon.com Inc 1.35% -10.4% 10.9% Consumer Discretionary General Electric Co 1.35% 7.5% 4.6% Industrials AT&T Inc 1.22% 6.0% 29.9% Telecommunication Services Facebook Inc A 1.20% -10.3% 9.9% Information Technology Top CVR Energy Inc 10 Performing 9��I!Return 0.00% Stocks (by 91.7% Quarter) Return -27.2% Energy CoreCivic Inc 0.01% 79.4% 0.8% Real Estate United States Steel Corp 0.02% 75.4% 319.6% Materials California Resources Corp 0.00% 70.3% -8.6% Energy NVIDIA Corp 0.25% 56.0% 226.9% Information Technology SVB Financial Group 0.04% 55.3% 44.4% Financials KeyCorp 0.09% 50.9% 42.1 % Financials EP Energy Corp A 0.00% 49.5% 49.5% Energy Goldman Sachs Group Inc 0.43% 48.9% 34.9% Financials SLM Corp 0.02% 47.5% 69.0% Financials Twilio Inc A 10 Performing 0.00% Stocks (by Return -55.2% Quarter)Bottom Return N/A Information Technology Puma Biotechnology Inc 0.00% -54.2% -60.8% Health Care Community Health Systems Inc 0.00% -51.6% -74.5% Health Care Fitbit Inc A 0.00% -50.7% -75.3% Information Technology GoPro Inc A 0.00% -47.8% -51.6% Consumer Discretionary Hertz Global Holdings Inc 0.01% -46.3% -61.8% Industrials GNC Holdings Inc 0.00% -45.1 % -63.0% Consumer Discretionary Alnylam Pharmaceuticals Inc 0.01% -44.8% -60.2% Health Care Juno Therapeutics Inc 0.01% -37.2% -57.1 % Health Care Groupon Inc 0.01% -35.5% 8.1% Consumer Discretionary Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of December 31, 2016 Or Russell 2000 Advanced Micro Devices Inc Top 10 Weighted Weight 0.45% Stocks 1 -Qtr Return 64.1% 1-Year Return 295.1% Sector Information Technology Microsemi Corp 0.33% 28.6% 65.6% Information Technology Webster Financial Corp 0.26% 43.7% 50.0% Financials Prosperity Bancshares Inc 0.26% 31.4% 53.5% Financials Bank of the Ozarks Inc 0.25% 37.5% 8.0% Financials RSP Permian Inc 0.23% 15.1% 82.9% Energy Curtiss-Wright Corp 0.23% 8.2% 44.4% Industrials EMCOR Group Inc 0.23% 18.8% 48.2% Industrials Aspen Technology Inc 0.23% 16.9% 44.8% Information Technology PrivateBancorp Inc 0.23% 18.0% 32.2% Financials �i� 10 Performing Stocks (by Return Quarter)Top Return Wins Finance Holdings Inc 0.01% 508.7% 1400.0% Financials Key Energy Services Inc 0.00% 293.0% -66.2% Energy Peabody Energy Corp 0.00% 222.6% -34.9% Energy Altisource Asset Management Corp 0.00% 189.2% 211.8% Real Estate Seventy Seven Energy Inc 0.00% 138.7% 4185.7% Energy AK Steel Holding Corp 0.17% 111.4% 355.8% Materials Era Group Inc 0.02% 110.8% 52.2% Energy NL Industries Inc 0.00% 107.4% 168.1% Industrials Fred's Inc 0.03% 106.1 % 15.6% Consumer Discretionary Pier 1 Imports Inc 0.04% 104.8% 77.9% Consumer Discretionary Bottom i Quarter) 2000Russell Weight I -Qtr 1-Year Sector Return Return Code Rebel Corp 0.00% -98.0%-100.0% Information Technology Republic Airways Holdings Inc 0.00% -93.4% -98.5% Industrials Basic Energy Services Inc 0.00% -92.5% -97.7% Energy Ophthotech Corp 0.01% -89.5% -93.8% Health Care Cempra Inc 0.01% -88.4% -91.0% Health Care Violin Memory Inc 0.00% -88.2% -98.2% Information Technology Adeptus Health Inc Class A 0.01% -82.3% -86.0% Health Care 6D Global Technologies Inc 0.00% -80.0% -99.7% Information Technology Proteon Therapeutics Inc 0.00% -79.6% -87.7% Health Care Anthera Pharmaceuticals Inc 0.00% -79.4% -86.0% Health Care l r+ Source: Morningstar Direct Page 5 OZ; ■ As the USD versus local currency return charts illustrate, the USD's strength was a major headwind for international index performance during the 4th quarter as well as over the trailing one-year period. The primary factor contributing to the return differentials in 2016 was increasing divergence in U.S. monetary policy (tightening) relative to other developed countries (further accommodation). While the U.S. growth prospects support reduced monetary stimulus, economic data in the Eurozone supports a continuation of monetary accommodation to bolster what has been a slow recovery. As such, the European Central Bank (ECB) lengthened its quantitative easing program, originally scheduled to end in March 2017, to December 2017. Although the program was extended, the ECB reduced the size of monthly purchases from $80 billion euros to $60 billion euros. This economic divergence was further reinforced after the election as Trump's pro -growth policies and protectionist views on trade, if enacted, favor additional USD strength. ■ The 41h quarter's USD performance was negative for both developed (-0.7%) and emerging (4.2%) markets. While emerging market performance (-1.4%) was also negative in local currency terms for the period, the currency impact was more pronounced in developed market results with the MSCI-EAFE Index's local currency return of 7.1 % representing a 7.9% spread relative to the benchmark's USD returns. While USD strength is also evident in the one-year performance of developed markets (1.0% USD vs. 5.3% local), USD emerging market performance of 11.2% marginally outpaced the emerging market local currency return of 9.7%. Japanese equities advanced considerably in local currency terms as a weaker yen was viewed as a major tailwind to its export driven economy. The U.K. also posted a solid quarter in local currency terms on the back of a weakening pound sterling and continued stimulus. Despite their local currency return strength, the USD returns of both countries were negative for the quarter with Japan returning -0.2% and the U.K. returning -0.9%. ■ While the 4th quarter's emerging market results were negatively impacted by rising yields, a stronger USD, and fears surrounding future U.S. trade and foreign policy, one-year performance in emerging markets was more than double the returns posted by developed markets. Although one-year of outperformance does not represent a trend, emerging market investors are hoping for a continuance of 2016's emerging market performance surge after several years of lagging results relative to domestic and developed international equity markets. Source: MSCI Global Index Monitor (Returns are Net) Page 6 The Market Environment International and Regional Market Index Performance (Country Count) As of December 31, 2016 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EMEA (10) EM Asia (8) Quarter Performance -1.3% -0.4% -0.7% 0.5% -1.0% -4.2% -1.4% 1.8% -6.1 % -3.1 % 3.7% ■USD ❑Local Currency 4.9% 6.9% 7.1% 5.3% 10.2% EM Latin Amer (5) I -0.9% 7:j 1.2°i° -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 1-Year Performance I■USD ❑Local Currency AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EMEA (10) EM Asia (8) EM Latin Amer (5) -5.0% 4.5% 7.0% 2.8% 6.5% 1.0% 5.3% 6.8% 4.2% 2.3% 11.2% 7.7699% 7% 19.9% 12.2% 31.0% 24.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% The Market Environment Consumer Discretionary Sector Weight 12.5% QuarterIVISCI-EAFE 1.6% -1.3% Consumer Staples 11.2% -10.3% -2.8% Energy 5.5% 10.4% 26.8% Financials 21.2% 9.5% -1.7% Health Care 10.7% -7.8% -11.8% Industrials 14.0% -1.9% 6.7% Information Technology 5.5% -3.2% 3.6% Materials 7.9% 3.4% 24.3% Real Estate 3.7% -7.4% 2.6% Telecommunication Services 4.5% -6.9% -7.3% Utilities Total 3.4% 00.0 -7.4% -5.5% Consumer Discretionary 11.5% Quarter -0.9% -0.6% Consumer Staples 9.8% -10.1 % -1.9% Energy 7.3% 8.3% 31.3% Financials 23.4% 6.8% 4.0% Health Care 8.1% -8.1% -13.1% Industrials 11.7% -2.2% 6.3% Information Technology 9.3% -5.0% 10.7% Materials 8.0% 2.6% 27.6% Real Estate 3.3% -7.9% 1.4% Telecommunication Services 4.7% -6.7% -4.1% Utilities Total 3.2% 100.0% -7.2% -3.3% IVISCI - Emerging Mkt Consumer Discretionary Sector Weight 10.3% Quarter Return -9.5% 1 -Year Return 0.9% Consumer Staples 7.2% -10.5% 0.4% Energy 7.9% 8.0% 36.5% Financials 24.4% -0.7% 15.0% Health Care 2.5% -9.6% -7.5% Industrials 5.8% -6.2% -1.9% Information Technology 23.3% -6.3% 16.8% Materials 7.4% 4.2% 31.4% Real Estate 2.6% -10.5% -1.8% Telecommunication Services 5.9% -6.2% 2.0% Utilities Total 2.9% i0 i -6.8% 3.2% U.S. Dollar International Index Attribution & Country Detail As of December 31, 2016 Country AW Japan Weight 24.1% Weight 17.0% Q_ Retut,�lllllllllllllll�ReturnM -0.2% 2.40 United Kingdom 18.3% 12.9% -0.9% -0.1% France 10.2% 7.2% 2.9% 4.9% Germany 9.3% 6.5% 1.5% 2.8% Switzerland 8.7% 6.1 % -3.9% -4.9% Australia 7.4% 5.2% 0.7% 11.5% Netherlands 3.3% 2.3% -2.1 % 4.89 Hong Kong 3.3% 2.3% -9.0% 2.3% Spain 3.1% 2.2% 2.2% -1.0% Sweden 2.8% 2.0% -0.8% 0.6% Italy 2.1 % 1.5% 10.8% -10.5% Denmark 1.7% 1.2% -8.7% -15.8% Singapore 1.2% 0.9% -3.6% 1.4% Belgium 1.2% 0.8% -11.8% -7.6% Finland 1.0% 0.7% 4.4% -4.7% Israel 0.7% 0.5% -11.3% -24.9% Norway 0.7% 0.5% 2.4% 13.3% Ireland 0.5% 0.3% 0.1% -7.1% Austria 0.2% 0.1% 6.5% 11.3% New Zealand 0.2% 0.1% -10.9% 18.40/( Portugal Total EAFE Countries 0.2% ii i 0.1% -2.9% 3.6% Canada Total Developed Countries 7.1 % 77.3% 3.3% -0.4% 24.6% 2.8% China 6.0% -7.1 % 0.9% Korea 3.3% -5.6% 8.8% Taiwan 2.8% -2.2% 18.5% India 1.9% -8.0% -1.4% Brazil 1.7% 2.1 % 66.2% South Africa 1.6% 4.1 % 17.9% Russia 1.0% 18.6% 54.8% Mexico 0.8% -7.9% -9.2% Indonesia 0.6% -7.8% 17.0% Malaysia 0.6% -8.4% -3.9% Thailand 0.5% -1.8% 26.6% Philippines 0.3% -12.8% -6.6% Chile 0.3% 2.2% 15.6% Poland 0.3% 3.4% 0.1% Turkey 0.2% -13.7% -8.5% Qatar 0.2% 0.7% 6.3% United Arab Emirates 0.2% -1.5% 13.6% Colombia 0.1% -2.3% 26.5% Peru 0.1% 2.5% 55.6% Greece 0.1% 15.3% -12.1 % Hungary 0.1% 9.3% 35.4% Czech Republic 0.0% -3.4% -5.0% Egypt Total Emerging Countries Total ACWIxUS Countries 0.0% 22.7% 00 -23.3% -4.2% -11.5% l i Source: MSCI Global Index Monitor (Returns are Net in USD) Page 7 • After defying logic and market expectations with solid positive results for most of 2016, fixed income benchmarks fell across various sectors and quality segments during the 41h quarter as the reality of higher interest rates and inflation expectations exerted their powerful impact on yields. On the interest rate front, market rates rose through the quarter as investors prepared for a telegraphed, and ultimately realized, interest rate increase of 25 basis points (bps) by the Fed. The December increase was supported by continued improvement in the U.S. economy, and represented the sole Fed rate increase for 2016. On the inflation front, Donald Trump's victory in the U.S. presidential election also played a role in the quarter's negative fixed income results as market expectations after the victory shifted sentiment toward potentially higher inflation and economic growth. ■ Looking through the quality lens, each of the fixed income quality segment benchmarks (with the exception of high yield) finished the 4th quarter down roughly -3%. The high yield (lower quality) benchmark was the only index to post a positive result for the quarter with a return of 1.8%. The high yield index benefited from its lower duration (less interest rate sensitivity) as well as a steady compression in credit spreads that offset the impact of generally higher market yields. Extending the comparison to the one-year period, the quality benchmarks all posted positive results with annual returns displaying an inverse relationship with their quality. ■ Examining results on a sector basis shows the nominal Treasury sector feeling the largest impact from the yield curve shift with a 4th quarter return of -3.8%. The lower -duration TIPS index returned -2.4% for the quarter. The mortgage sector posted the quarter's best relative result with a return of -2.0% benefiting from its lower duration. Given the previously mentioned negative impact of USD strength on foreign investments, the 41h quarter was a particularly difficult quarter for global fixed income markets with the Global Aggregate ex-U.S. index returning-10.3%. Despite the 4th quarter's negative index results, each sector and global benchmark posted positive results for the trailing one-year period. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of December 31, 2016 AAA (5.4) AA (6.2) A (7.5) Baa (7.3) U.S. High Yield (4.1) U.S. Treasury(6.1) U.S. Mortgage (4.6) U.S. Corporate IG (7.3) U.S. TIPS (4.9) Aggregate (5.9) Intermediate Agg (4.3) Global Agg x US (7.8) Multiverse (6.7) Quarter Performance -3.0% -3.1 % -3.2% z.7% 1.8% -3.8% 2.0% -2.8% -2.4% -3.0% -2.0% -10.3% -6.7% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 1-Year Performance AAA (5.4) AA (6.2) A (7.5) Baa (7.3) U.S. High Yield (4.1) U.S. Treasury (6.1) U.S. Mortgage (4.6) U.S. Corporate IG (7.3) U.S. TIPS (4.9) ■ The Fed stated that future rate increases will be implemented at a Aggregate (5.9) measured pace and will be based on an ongoing assessment of current Intermediate Agg (4.3) economic data. However, future policy action by the new Trump Global Agg x US (7.8) Administration and global economic developments will likely impact the Multiverse (6.7) pace of future interest rate increases as well. Source: Barclays Capital Live Page 8 1.4% 3.1 % 4.7% 7.9% 17.1 % 1.0% 1.7% 6.1 % 4.7% 2.6% 2.0% 1.5% 2.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The 1-Year Trailing Market Rates' chart illustrates that after trading in a tight range for most of the year, the 10-year Treasury yield (green line) rose dramatically over the final months of 2016, closing at a yield (2.45%) near its one-year high. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread). This measure quantifies the additional yield premium that investors require to purchase and hold non -Treasury issues. The steady decline in credit spreads throughout 2016 is equivalent to an interest rate decrease on corporate bonds, which results in a tailwind for corporate bond index returns. While there was some upside momentum in credit spreads early in 2016, they have narrowed by over 1.25% since their high on February 1111 The lower graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters and clearly illustrates the unrest that materialized in Treasury yields during the 41h quarter. While each of the last three quarter -end yield curves show a fairly tight distribution, the December 31st reading is higher at all maturities with both short- and long- term rates finishing 2016 near the high end of their respective 12-month trading ranges. This upward shift caused yields to rise an average of 22 bps for maturities of less than one-year, 60 bps for the two- to five-year maturity range, and 81 bps for the seven- to thirty-year maturity range. Greater yield increases at the longer end of the curve represent a "steepening" of the yield curve which conveys market anticipation of higher interest rates in the future. Given the magnitude of the increase in yields that occurred during the period, it is no surprise that most fixed income indices finished the quarter in negative territory. In a rising rate environment, it is also expected that longer -duration market indices will fall more than equivalent lower -duration benchmarks. Finally, while global benchmarks are impacted by the same yield and duration factors as domestic benchmarks, they have the additional powerful lever of currency impact. This currency effect can either be an offsetting benefit to negative yield and duration factors in a rising rate environment or an exacerbation of negative performance as it was during the 41h quarter. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of December 31, 2016 1-Year Trailing Market Rates Fed Funds Rate TED Spread 3-Month Libor BAA OAS 10 r Treasury 10 r TIPS 0.00 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) Page 9 WP Total Fund Compliance: The total plan return equaled or exceeded the total plan benchmark over the trailing three year period. The three year total plan return ranks in the top 40% of its peers. The total plan return of the fund over the trailing three year period equaled or exceeded 7.3% (actuarial assumption rate of return). Equity Compliance: The equity return equaled or exceeded the benchmark over the trailing three year period. The equity return equaled or exceeded the benchmark over the trailing five year period. The amount invested in any single security is less than or equal to 5% of the market value of the total equity portfolio. The amount invested in any single industry is less than or equal to 20% of the market value of the total equity portfolio. Palm Beach Gardens Police Pension Fund Compliance Checklist As of December 31, 2016 Yes No • Yes No • Fixed Income Compliance: Yes No The fixed income return equaled or exceeded the benchmark over the trailing three year period. • The fixed income return equaled or exceeded the BCAB index over the trailing five year period. • The amount invested in any single security (excluding U.S. Government and its agencies) is less than or equal to 5% of the market value of the total fixed income portfolio. • The minimum quality rating of the domestic bond investments is BBB from Standard & Poor's or BAA from Moody's. • Page 10 Asset Allocation Compliance Palm Beach Gardens Police Total Fund Composite As of December 31, 2016 Asset Allocation Compliance Asset Allocation Current Allocation (%) Target Allocation (%) Differences (%) Target Rebal. ($000) Total Fund Composite 84,422,396 100.0 100.0 0.0 - Highland Capital Balanced 27,253,581 32.3 33.5 -1.2 1,027,922 Rhumbline S&P 500 Equity 20,295,491 24.0 25.0 -1.0 810,108 Rhumbline S&P 400 Equity 9,853,913 11.7 10.0 1.7 -1,411,673 Rhumbline S&P 600 Equity 9,629,615 11.4 10.0 1.4 -1,187,376 Rhumbline International Equity 7,664,848 9.1 10.0 -0.9 777,392 Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,176,418 3.8 4.0 -0.2 200,478 American Realty 6,548,523 7.8 7.5 0.3 -216,844 R&D Cash 8 0.0 0.0 0.0 -8 Highland Capital Balanced -1.2 i- Rhumbline S&P 500 Equity -1.0 i_ Rhumbline S&P 400 Equity -1.7% Rhumbline S&P 600 Equity -1.4% Rhumbline International Equity -0.9 /� Oppenheimer Dreyfus (OIBAX) (DIBAX) -0.2 1 American Realty 00.3% R&D Cash 10.0 -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0% Allocation Differences Executive Summary Highland Capital Balanced (32.3%) Rhumbline S&P 500 Equity (24.0%) �� c Rhumbline S&P 400 Equity (11.7%) Rhumbline S&P 600 Equity (11.4%) IV d Rhumbline International Equity (9.1%) �� E E Oppenheimer Dreyfus (DIBAX) (DIBAX) (3.8%) T 0 m American Realty (7.8%) R&D Cash (0.0%) T -20.0 % 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Policy Target In Policy Page 11 Asset Allocation Compliance Palm Beach Gardens Police Total Fund Composite As of December 31, 2016 Asset Allocation Compliance Asset Allocation Current Allocation (%) Target Allocation (%) Differences (%) Target Rebal. ($000) Domestic Equity 47,649,638 56.4 55.0 1.4 -1,217,320 International Equity 7,664,848 9.1 10.0 -0.9 777,392 Domestic Fixed Income 18,219,749 21.6 23.5 -1.9 1,619,514 International Fixed Income 3,176,418 3.8 4.0 -0.2 200,478 Real Estate 6,548,523 7.8 7.5 0.3 -216,844 Cash Equivalent 1,163,219 1.4 0.0 1.4 -1,163,219 Total Fund 84,422,396 100.0 100.0 0.0 Domestic Equity -1.4% International Equity -0.9 %= Domestic Fixed Income -1.9 %- International Fixed Income -0.2 i' Real Estate 103 Cash Equivalent _1.4% -10.0 % -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0% 0 Allocation Differences Executive Summary Domestic Equity (56.4%) International Equity (9.1%) Domestic Fixed Income (21.6%) International Fixed Income (3.8%) Real Estate (7.8%) Cash Equivalent (1.4%) -20.0 % IT 0.0% 20.0% 40.0% 60.0% Policy Target V In Policy c 0 c m E E 0 u m 80.0% 100.0% 120.0% Page 12 Asset Allocation By Segment as of September 30, 2016 : $80,896,623 Allocation Allocation Asset Allocation By Segment as of December 31, 2016 : $84,422,396 Asset Allocation Summary Total Fund Composite As of December 31. 2016 Segments Market Value Allocation Segments Market Value Allocation ■ Domestic Equity 45,758,085 56.6 ■ Domestic Equity 47,649,638 56.4 International Equity 7,722,343 9.5 International Equity 7,664,848 9.1 ■ Domestic Fixed Income 16,377,329 20.2 ■ Domestic Fixed Income 18,219,749 21.6 International Fixed Income 3,389,879 4.2 International Fixed Income 3,176,418 3.8 ■ Real Estate 6,568,344 8.1 ■ Real Estate 6,548,523 7.8 ■ Cash Equivalent 1,080,643 1.3 ■ Cash Equivalent 1,163,219 1.4 Page 13 Asset Allocation By Manager as of September 30, 2016 : $80,896,623 Allocation Allocation U Asset Allocation By Manager as of December 31, 2016 : $84,422,396 K] Asset Allocation Summary Total Fund Composite As of December 31. 2016 Market Value Allocation Market Value Allocation ■ Highland Capital Balanced 25,024,780 30.9 ■ Highland Capital Balanced 27,253,581 32.3 Rhumbline S&P 500 Equity 19,551,948 24.2 Rhumbline S&P 500 Equity 20,295,491 24.0 ■ Rhumbline S&P 600 Equity 9,464,523 11.7 Rhumbline S&P 400 Equity 9,853,913 11.7 Rhumbline S&P 400 Equity 9,174,798 11.3 ■ Rhumbline S&P 600 Equity 9,629,615 11.4 ■ Rhumbline International Equity 7,722,343 9.5 ■ Rhumbline International Equity 7,664,848 9.1 ■ American Realty 6,568,344 8.1 ■ American Realty 6,548,523 7.8 Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,389,879 4.2 Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,176,418 3.8 R&D Cash 8 0.0 R&D Cash 8 0.0 Page 14 Asset Allocation & Performance Total Fund Composite (Gross) As of December 31, 2016 Asset Allocation & Performance Allocation Performance(%) Market Inception Value % QTR FYTD 1 YR 3 YR 5 YR Inception Date $ Total Fund Composite 84,422,396 100.0 2.43 (3) 2.43 (3) 9.89 (5) 6.16 (4) 10.20 (5) 7.74 (57) 04/01/1992 Total Fund Policy Index 1.72 (12) 1.72 (12) 9.66 (6) 6.01 (6) 9.88 (9) 8.51 (11) Difference 0.71 0.71 0.23 0.15 0.32 -0.77 All Public Plans -Total Fund Median 0.70 0.70 7.26 4.61 8.51 7.77 Total Equity Composite 55,314,486 65.5 4.93 4.93 13.22 7.44 14.24 5.21 07/01/2000 Total Equity Policy Index 4.41 4.41 13.07 7.45 13.93 5.00 Difference 0.52 0.52 0.15 -0.01 0.31 0.21 Total Domestic Equity Rhumbline S&P 500 Equity 20,295,491 24.0 3.80 (53) 3.80 (53) 11.90 (42) 8.83 (34) 14.61 (47) 4.81 (73) 07/01/2000 S&P 500Index 3.82 (52) 3.82 (52) 11.96 (41) 8.87 (32) 14.66 (44) 4.68 (79) Difference -0.02 -0.02 -0.06 -0.04 -0.05 0.13 IM U.S. Large Cap Equity (SA+CF) Median 3.84 3.84 10.98 8.27 14.52 5.97 Rhumbline S&P 400 Equity 9,853,913 11.7 7.40 (25) 7.40 (25) 20.59 (20) 9.03 (25) 15.30 (37) 10.14 (44) 01/01/2004 S&P MidCap 400 Index 7.42 (24) 7.42 (24) 20.74 (19) 9.04 (25) 15.33 (35) 10.05 (52) Difference -0.02 -0.02 -0.15 -0.01 -0.03 0.09 IM U.S. Mid Cap Equity (SA+CF) Median 3.90 3.90 12.12 7.13 14.61 10.08 Rhumbline S&P 600 Equity 9,629,615 11.4 11.11 (34) 11.11 (34) 26.41 (25) 9.47 (26) 16.57 (31) 10.44 (33) 01/01/2004 S&P SmallCap 600 11.13 (33) 11.13 (33) 26.56 (24) 9.47 (26) 16.62 (30) 10.38 (35) Difference -0.02 -0.02 -0.15 0.00 -0.05 0.06 IM U.S. Small Cap Equity (SA+CF) Median 9.08 9.08 20.87 7.78 15.45 9.82 Highland Capital LCG 7,870,620 9.3 2.65 (17) 2.65 (17) 4.62 (50) 6.07 (73) 14.21 (44) 7.01 (58) 10/01/2007 Russell 1000 Growth Index 1.01 (38) 1.01 (38) 7.08 (26) 8.55 (28) 14.50 (36) 7.64 (35) Difference 1.64 1.64 -2.46 -2.48 -0.29 -0.63 IM U.S. Large Cap Growth Equity (SA+CF) Median 0.18 0.18 4.60 7.22 13.94 7.12 International Equity Rhumbline International Equity 7,664,848 9.1 -0.76 (29) -0.76 (29) N/A N/A N/A -0.76 (54) 08/01/2016 MSCI EAFE Index -0.68 (28) -0.68 (28) 1.51 (65) -1.15 (60) 7.02 (54) 0.67 (37) Difference -0.08 -0.08 N/A N/A N/A -1.43 IM International Equity (SA+CF) Median -2.92 -2.92 3.69 -0.37 7.20 -0.56 Page 15 Total Fixed Income Composite Total Fixed Inc Policy Index Difference Domestic Fixed Income Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index Difference IM U.S. Broad Market Core Fixed Income (SA+CF) Median International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX) Citigroup Non-U.S. World Government Bond Difference IM International Fixed Income All (MF) Median Real Estate American Realty NCREIF Property Index Difference IM U.S. Private Real Estate (SA+CF) Median R&D Cash Asset Allocation & Performance Total Fund Composite (Gross) As of December 31, 2016 Allocation Performance(%) Market Value % QTR FYTD 1 YR 3 YR 5 YR Inception Inception $ Date 21,396,168 25.3 -3.32 -3.32 3.41 2.59 2.00 5.39 04/01/1994 -3.86 -3.86 2.59 2.47 1.78 5.47 0.54 0.54 0.82 0.12 0.22 -0.08 18,219,749 21.6 -2.83 (56) -2.83 (56) 3.71 (30) 3.04 (83) 2.19 (95) 5.45 (97) 04/01/1994 -2.98 (75) -2.98 (75) 2.65 (77) 3.03 (85) 2.23 (92) 5.58 (93) 0.15 0.15 1.06 0.01 -0.04 -0.13 -2.81 -2.81 3.10 3.34 2.82 5.90 3,176,418 3.8 -6.30 (85) -6.30 (85) 3.74 (84) 0.06 (67) 1.12 (73) 0.92 (68) 10/01/2010 -10.84 (99) -10.84 (99) 1.81 (90) -2.18 (84) -1.94 (87) -0.99 (83) 4.54 4.54 1.93 2.24 3.06 1.91 -3.10 -3.10 9.51 2.11 3.71 3.12 6,548,523 7.8 1.20 (87) 1.20 (87) 7.09 (96) 10.84 (94) N/A 11.47 (87) 07/01/2012 1.73 (74) 1.73 (74) 7.97 (88) 11.02 (93) 10.92 (93) 10.91 (93) -0.53 -0.53 -0.88 -0.18 N/A 0.56 2.30 2.30 9.52 12.77 13.18 13.11 8 0.0 Page 16 Asset Allocation & Performance Total Fund Composite (Net) As of December 31, 2016 Asset Allocation & Performance Allocation Performance(%) Market Inception Value % QTR FYTD 1 YR 3 YR 5 YR Inception Date $ Total Fund Composite 84,422,396 100.0 2.40 2.40 9.72 5.97 9.99 7.50 04/01/1992 Total Fund Policy Index 1.72 1.72 9.66 6.01 9.88 8.51 Difference 0.68 0.68 0.06 -0.04 0.11 -1.01 Total Equity Composite 55,314,486 65.5 4.93 4.93 13.22 7.44 14.24 5.21 07/01/2000 Total Equity Policy Index 4.41 4.41 13.07 7.45 13.93 5.00 Difference 0.52 0.52 0.15 -0.01 0.31 0.21 Total Domestic Equity Rhumbline S&P 500 Equity 20,295,491 24.0 3.79 3.79 11.83 8.77 14.53 4.68 07/01/2000 S&P 500 Index 3.82 3.82 11.96 8.87 14.66 4.68 Difference -0.03 -0.03 -0.13 -0.10 -0.13 0.00 Rhumbline S&P 400 Equity 9,853,913 11.7 7.39 7.39 20.51 8.98 15.26 10.12 01/01/2004 S&P MidCap 400 Index 7.42 7.42 2074 9.04 15.33 10.05 Difference -0.03 -0.03 -0.23 -0.06 -0.07 0.07 Rhumbline S&P 600 Equity 9,629,615 11.4 11.10 11.10 26.33 9.41 16.53 10.43 01/01/2004 S&P SmallCap 600 11.13 11.13 26.56 9.47 16.62 10.38 Difference -0.03 -0.03 -0.23 -0.06 -0.09 0.05 Highland Capital LCG Equity 7,870,620 9.3 2.65 2.65 4.62 6.07 14.21 7.01 10/01/2007 Russell 1000 Growth Index 1.01 1.01 7.08 8.55 14.50 7.64 Difference 1.64 1.64 -2.46 -2.48 -0.29 -0.63 International Equity Rhumbline International Equity 7,664,848 9.1 -0.78 -0.78 N/A N/A N/A -0.77 08/01/2016 MSCI EAFE Index -0.68 -0.68 1.51 -1.15 7.02 0.67 Difference -0.10 -0.10 N/A N/A N/A -1.44 Total Fixed Income Composite 21,396,168 25.3 -3.32 -3.32 3.41 2.59 2.00 5.39 04/01/1994 Total Fixed Inc Policy Index -3.86 -3.86 2.59 2.47 1.78 5.47 Difference 0.54 0.54 0.82 0.12 0.22 -0.08 Page 17 Asset Allocation & Performance Total Fund Composite (Net) As of December 31, 2016 Allocation Market Value % � QTR FYTD 1 YR Performance(%) 3 YR 5 YR Inception Inception Date Domestic Fixed Income Highland Capital Fixed Income 18,219,749 21.6 -2.83 -2.83 3.71 3.04 2.19 5.45 04/01/1994 Bloomberg Barclays U.S. Aggregate Index -2.98 -2.98 2.65 3.03 2.23 5.58 Difference 0.15 0.15 1.06 0.01 -0.04 -0.13 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,176,418 3.8 -6.30 -6.30 3.74 0.06 1.12 0.92 10/01/2010 Citigroup Non-U.S. World Government Bond -10.84 -10.84 1.81 -2.18 -1.94 -0.99 Difference 4.54 4.54 1.93 2.24 3.06 1.91 Real Estate American Realty 6,548,523 7.8 0.92 0.92 5.93 9.68 N/A 10.29 07/01/2012 NCREIF Property Index 1.73 1.73 7.97 11.02 10.92 10.91 Difference -0.81 -0.81 -2.04 -1.34 N/A -0.62 Page 18 Asset Allocation & Performance Total Fund Composite (Gross) As of December 31, 2016 Asset Allocation & Performance Allocation Performance(%) Market Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Value % To To To To To To To To To To $ Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Total Fund Composite 84,422,396 100.0 10.96 (14) 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) Total Fund Policy Index 11.62 (7) 0.81 (19) 10.35 (47) 14.21 (22) 19.60 (18) 1.75 (19) 10.81 (29) 1.64 (50) -12.83 (48) 13.68 (62) Difference -0.66 0.65 0.60 0.54 -0.71 -1.29 -0.39 4.35 -0.63 -1.46 All Public Plans -Total Fund Median 9.68 -0.53 10.17 12.51 17.93 0.22 9.92 1.59 -12.96 14.09 Total Equity Composite 55,314,486 65.5 13.39 0.44 14.07 24.58 28.78 -2.47 12.49 -0.91 -23.22 17.99 Total Equity Policy Index 14.30 -0.18 13.86 23.27 27.80 -0.50 11.44 -4.36 -21.04 17.05 Difference -0.91 0.62 0.21 1.31 0.98 -1.97 1.05 3.45 -2.18 0.94 Total Domestic Equity Rhumbline S&P 500 Equity 20,295,491 24.0 15.38 (25) -0.63 (57) 19.64 (39) 19.30 (71) 30.16 (39) 1.18 (44) 10.20 (49) -6.49 (60) -21.73 (59) 16.63 (57) S&P 500 Index 15.43 (24) -0.61 (57) 19.73 (37) 19.34 (70) 30.20 (38) 1.14 (45) 10.16 (50) -6.91 (65) -21.98 (63) 16.44 (61) Difference -0.05 -0.02 -0.09 -0.04 -0.04 0.04 0.04 0.42 0.25 0.19 IM U.S. Large Cap Equity (SA+CF) Median 13.19 -0.37 18.80 21.13 29.17 0.75 10.11 -5.51 -20.84 17.08 Rhumbline S&P 400 Equity 9,853,913 11.7 15.21 (28) 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 (60) S&P MidCap 400 Index 15.33 (27) 1.40 (53) 11.82 (67) 27.68 (56) 28.54 (41) -1.28 (58) 17.78 (41) -3.11 (55) -16.68 (21) 18.76 (59) Difference -0.12 0.05 -0.01 -0.13 0.36 0.12 0.00 0.33 0.14 -0.03 IM U.S. Mid Cap Equity (SA+CF) Median 11.35 1.47 13.49 28.01 27.30 -0.70 16.72 -2.72 -20.82 20.68 Rhumbline S&P 600 Equity 9,629,615 11.4 18.00 (26) 3.90 (36) 5.79 (54) 31.40 (56) 33.27 (36) 0.21 (38) 14.14 (58) -10.54 (76) -13.64 (22) 15.16 (59) S&P SmallCap 600 18.12 (24) 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) Difference -0.12 0.09 0.05 -0.11 -0.08 0.00 -0.08 0.07 0.19 0.23 IM U.S. Small Cap Equity (SA+CF) Median 14.58 2.40 6.13 32.17 31.60 -1.22 14.99 -5.30 -18.20 17.46 Highland Capital LCG 7,870,620 9.3 6.68 (93) 4.64 (34) 16.29 (70) 28.73 (7) 27.51 (51) -6.48 (97) 14.63 (22) 15.31 (2) -30.80 (98) N/A Russell 1000 Growth Index 13.76 (22) 3.17 (56) 19.15 (39) 19.27 (65) 29.19 (38) 3.78 (30) 12.65 (36) -1.85 (37) -20.88 (54) 19.35 (57) Difference -7.08 1.47 -2.86 9.46 -1.68 -10.26 1.98 17.16 -9.92 N/A IM U.S. Large Cap Growth Equity (SA+CF) Median 11.64 3.61 18.13 20.27 27.63 1.38 11.30 -3.01 -20.28 20.19 International Equity Rhumbline International Equity 7,664,848 9.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 7.06 (76) -8.27 (51) 4.70 (63) 24.29 (33) 14.33 (71) -8.94 (44) 3.71 (80) 3.80 (65) -30.13 (48) 25.38 (67) 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 11.47 -8.16 5.80 20.28 17.29 -9.60 9.69 7.04 -30.34 29.56 Page 19 Asset Allocation & Performance Total Fund Composite (Gross) As of December 31, 2016 Allocation Performance(%) Market Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Value % To To To To To To To To To To $ Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Total Fixed Income Composite 21,396,168 25.3 6.60 1.40 3.45 -2.57 6.28 5.20 8.28 11.96 1.23 4.97 Total Fixed Inc Policy Index 6.01 1.82 3.41 -2.11 4.98 5.18 7.78 11.18 3.84 5.62 Difference 0.59 -0.42 0.04 -0.46 1.30 0.02 0.50 0.78 -2.61 -0.65 Domestic Fixed Income Highland Capital Fixed Income 18,219,749 21.6 6.51 (19) 2.22 (88) 3.51 (94) -2.54 (99) 6.07 (72) 5.66 (27) 8.09 (89) 11.96 (58) 1.23 (63) 4.97 (70) Bloomberg Barclays U.S. Aggregate Index 5.19 (80) 2.94 (59) 3.96 (80) -1.68 (80) 5.16 (91) 5.26 (49) 8.16 (87) 10.56 (82) 3.65 (32) 5.14 (53) Difference 1.32 -0.72 -0.45 -0.86 0.91 0.40 -0.07 1.40 -2.42 -0.17 IM U.S. Broad Market Core Fixed Income (SA+CF) Median 5.66 3.02 4.50 -1.26 6.61 5.26 9.26 12.28 2.55 5.16 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,176,418 3.8 9.59 (81) -4.81 (31) 2.98 (69) -2.82 (42) 7.90 (70) 0.32 (40) N/A N/A N/A N/A Citigroup Non-U.S. World Government Bond 12.61 (56) -7.01 (45) -0.99 (89) -5.63 (81) 3.45 (91) 4.13(4) 4.46 (88) 16.04 (53) 5.16 (1) 9.53 (32) Difference -3.02 2.20 3.97 2.81 4.45 -3.81 N/A N/A N/A N/A IM International Fixed Income All (MF) Median 13.07 -7.89 5.35 -3.50 14.50 -0.29 13.84 16.28 -4.33 8.49 Real Estate American Realty 6,548,523 7.8 9.03 (94) 14.05 (71) 12.45 (72) 12.30 (73) N/A N/A N/A N/A N/A N/A NCREIF Property Index 9.22 (93) 13.48 (77) 11.26 (91) 11.00 (83) 11.00 (75) 16.10 (71) 5.84 (49) -22.09 (10) 5.27 (46) 17.31 (66) Difference -0.19 0.57 1.19 1.30 N/A N/A N/A N/A N/A N/A IM U.S. Private Real Estate (SA+CF) Median 11.49 16.17 13.17 13.35 13.03 16.96 5.80 -33.88 4.97 18.53 R&D Cash 8 0.0 Page 20 uz� Asset Allocation & Performance Total Fund Composite (Net) As of December 31, 2016 Asset Allocation & Performance Allocation Performance(%) Market Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Value % To To To To To To To To To To $ Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Total Fund Composite 84,422,396 100.0 10.74 1.29 10.73 14.53 18.64 0.22 10.08 5.61 -13.73 11.90 Total Fund Policy Index 11.62 0.81 10.35 14.21 19.60 1.75 10.81 1.64 -12.83 13.68 Difference -0.88 0.48 0.38 0.32 -0.96 -1.53 -0.73 3.97 -0.90 -1.78 Total Equity Composite 55,314,486 65.5 13.39 0.44 14.07 24.58 28.78 -2.47 12.49 -0.91 -23.22 17.99 Total Equity Policy Index 14.30 -0.18 13.86 23.27 27.80 -0.50 11.44 -4.36 -21.04 17.05 Difference -0.91 0.62 0.21 1.31 0.98 -1.97 1.05 3.45 -2.18 0.94 Total Domestic Equity Rhumbline S&P 500 Equity 20,295,491 24.0 15.31 -0.66 19.55 19.18 29.99 1.04 10.02 -6.71 -21.87 16.47 S&P 500 Index 15.43 -0.61 19.73 19.34 30.20 1.14 10.16 -6.91 -21.98 16.44 Difference -0.12 -0.05 -0.18 -0.16 -0.21 -0.10 -0.14 0.20 0.11 0.03 Rhumbline S&P 400 Equity 9,853,913 11.7 15.13 1.40 11.78 27,55 28.90 -1.16 17.78 -2.78 -16.54 18.73 S&P MidCap 400 Index 15.33 1.40 11.82 27.68 28.54 -1.28 17.78 -3.11 -16.68 18.76 Difference -0.20 0.00 -0.04 -0.13 0.36 0.12 0.00 0.33 0.14 -0.03 Rhumbline S&P 600 Equity 9,629,615 11.4 17.92 3.85 5.76 31.40 33.27 0.21 14.14 -10.54 -13.64 15.16 S&P SmallCap 600 18.12 3.81 5.74 31.51 33.35 0.21 14.22 -10.61 -13.83 14.93 Difference -0.20 0.04 0.02 -0.11 -0.08 0.00 -0.08 0.07 0.19 0.23 Highland Capital LCG 7,870,620 9.3 6.68 4.64 16.29 28.73 27.51 -6.48 14.63 15.31 -30.80 N/A Russell 1000 Growth Index 13.76 3.17 19.15 19.27 29.19 3.78 12.65 -1.85 -20.88 19.35 Difference -7.08 1.47 -2.86 9.46 -1.68 -10.26 1.98 17.16 -9.92 N/A International Equity Rhumbline International Equity 7,664,848 9.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 7.06 -8.27 4.70 24.29 14.33 -8.94 3.71 3.80 -30.13 25.38 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 21,396,168 25.3IM 6.60 A 1.40 M 3.45 _JL -2.57_& 6.28A]W5.20AW 8.2� 11.96 JL 1,23 � 4.97 Total Fixed Inc Policy Index 6.01 1.82 3.41 -2.11 4.98 5.18 7.78 11.18 3.84 5.62 Difference 0.59 -0.42 0.04 -0.46 1.30 0.02 0.50 0.78 -2.61 -0.65 Page 21 Asset Allocation & Performance Total Fund Composite (Net) As of December 31, 2016 Allocation Performance(%) Market Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Value % To To To To To To To To To To $ Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Domestic Fixed Income Highland Capital Fixed Income 18,219,749 21.6 6.51 2.22 3.51 -2.54 6.07 5.66 8.09 11.96 1.23 4.97 Bloomberg Barclays U.S. Aggregate Index 5.19 2.94 3.96 -1.68 5.16 5.26 8.16 10.56 3.65 5.14 Difference 1.32 -0.72 -0.45 -0.86 0.91 0.40 -0.07 1.40 -2.42 -0.17 International Fixed Income Oppenheimer Dreyfus (OIBAX) (DIBAX) 3,176,418 3.8 9.59 -4.81 2.98 -2.82 7.90 0.32 N/A N/A N/A N/A Citigroup Non-U.S. World Government Bond 12.61 -7.01 -0.99 -5.63 3.45 4.13 4.46 16.04 5.16 9.53 Difference -3.02 2.20 3.97 2.81 4.45 -3.81 N/A N/A N/A N/A Real Estate American Realty 6,548,523 7.8 7.85 12.82 11.34 11.10 N/A N/A N/A N/A N/A N/A NCREIF Property Index 9.22 13.48 11.26 11.00 11.00 16.10 5.84 -22.09 5.27 17.31 Difference -1.37 -0.66 0.08 0.10 N/A N/A N/A N/A N/A N/A Page 22 Historical Rolling Performance Total Fund Composite As of December 31, 2016 Historical Rolling Performance QTR 1 YR 3 YR 5 YR Inception 12/31 /2016 2.43 9.89 6.16 10.20 7.74 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 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 23 Historical Rolling Performance Total Fund Policy Index As of December 31, 2016 Historical Rolling Performance QTR 1 YR 3 YR 5 YR Inception 12/31 /2016 1.72 9.66 6.01 9.88 8.50 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 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 24 Strategy Review Total Fund Composite I Total Fund Policy Index As of December 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Up Up Down Market Up Down Market Down Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 6.16 4.94 1.22 102.78 10.00 103.02 2.00 Investment 10.20 6.28 1.58 103.49 17.00 105.15 3.00 Index 6.01 4.66 1.26 100.00 9.00 100.00 3.00 Index 9.88 5.96 1.61 100.00 16.00 100.00 4.00 Risk and Return 3 Years 6.2 1 6.1 c d 6.0 5.9 1 4.6 4.7 4.8 4.9 5 Risk (Standard Deviation %) Investment O Index 3 Year Rolling Percentile Rank All Public Plans -Total Fund 0.0 25.0 m m `� m a c 50.0 d 0: 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 17 (85%) 3 (15%) 0 (0%) 0 (0%) - Index 20 19 (95%) 1 (5%) 0 (0%) 0 (0%) Risk and Return 5 Years 10.3 10.2 • 10.1 c d � 10.0 9.9 9.8 5.9 6.0 6.1 6.2 6.3 6. Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank All Public Plans -Total Fund 0.0 � 25.0 m .c m `� 50.0 m a c d 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 20 (100%) 0 (0%) 0 (0%) 0 (0%) Index 20 20 (100%) 0 (0%) 0 (0%) 0 (0%) 4 1 Page 25 Peer Group Analysis - All Public Plans -Total Fund 12.0 10.0 8.0 6.0 4.0 2.0 0 0 0.0 -2.0 • 0 • 0 1 YR 3 YR 5 YR Median 0.70 0.70 7.26 4.61 8.51 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Strategy Review Total Fund Composite I Total Fund Policy Index As of December 31, 2016 Peer Group Analysis - All Public Plans -Total Fund 28.0 24.0 20.0 16.0 12.0 3 r O • Q d 8.0 4.0 � 0 0.0 -4.0 -8.0 • 0 • 0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 40 Investment 10.96 (14) 1.46 (11) 10.95 (33) 14.75 (16) 18.89 (28) 0 Index 11.62 (7) 0.81 (19) 10.35 (47) 14.21 (23) 19.60 (17) Median 9.68 -0.50 10.17 12.53 17.92 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec-2015 Sep-2015 Jun-2015 Investment 3.11 (66) 2.12 (35) 1.89 (11) 3.42 (23) -5.13 (54) 0.06 (38) Index 3.44 (50) 2.14 (34) 2.03 (9) 3.54 (17) -4.45 (27) -0.41 69 Median 3.43 1.91 1.04 2.88 -5.04 -0.11 Page 26 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 2.0 1.5 1.0 0.5 0.0 _ -0.5 Total Fund Composite Total Fund Policy Index ■ Alpha -0.14 0.00 Beta 1.05 1.00 ■ Sharpe Ratio 1.22 1.26 Treynor Ratio 0.06 0.06 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 1.2 0.9 0.6 0.3 0.0 Total Fund Composite Total Fund Policy Index ■ Actual Correlation 0.99 1.00 Information Ratio 0.21 N/A ■ R-Squared 0.98 1.00 Tracking Error 0.77 0.00 Benchmark: Total Fund Policy Index Page 27 Portfolio Comparison Total Fund As of December 31, 2016 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 2.4 1.6 0.8 0.0 - -0.8 Total Fund Composite Total Fund Policy Index ■ Alpha -0.14 0.00 Beta 1.05 1.00 ■ Sharpe Ratio 1.58 1.61 Treynor Ratio 0.09 0.10 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 1.2 0.9 0.6 0.3 0.0 Total Fund Composite Total Fund Policy Index ■ Actual Correlation 0.99 1.00 Information Ratio 0.41 N/A ■ R-Squared 0.99 1.00 Tracking Error 0.77 0.00 Historical Statistics 3 Years Return Standard Sharpe Up Market Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Strategy Review Rhumbline S&P 500 Equity I S&P 500 Index As of December 31, 2016 Historical Statistics 5 Years Return Standard Sharpe Up Market Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Investment 8.83 6.53 1.33 99.70 11.00 100.49 1.00 Investment 14.61 8.89 1.59 99.73 17.00 100.03 3.00 Index 8.87 6.52 1.33 100.00 11.00 100.00 1.00 Index 14.66 8.89 1.60 100.00 17.00 100.00 3.00 Risk and Return 3 Years 8.9 8.8 6.5 6 Risk (Standard Deviation %) Investment O Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Equity (SA+CF) 0.0 c 25.0 m m `� m a E 50.0 d 0: 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 0 (0%) 11 (55%) 9 (45%) 0 (0%) - Index 20 0 (0%) 12 (60%) 8 (40%) 0 (0%) Risk and Return 5 Years 14.7 E d K 14.6 8.8 8.9 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Equity (SA+CF) 0.0 c 25.0 m m h Z 2 50.0 `m a r d 75.0 100.0 - 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 0 (0%) 5 (25%) 15 (75%) 0 (0%) Index 20 0 (0%) 5 (25%) 15 (75%) 0 (0%) Page 28 Strategy Review Rhumbline S&P 500 Equity I S&P 500 Index As of December 31, 2016 Peer Group Analysis - IM U.S. Large Cap Equity (SA+CF) Peer Group Analysis - IM U.S. Large Cap Equity (SA+CF) 23.0 44.0 20.0 38.0 17.0 32.0 • O • O 26.0 14.0 • O 20.0 • O • O 11.0 • O 14.0 8.0 8.0 5.0 • O • O 2.0 2.0 • O -4.0 -1.0 -10.0 -4.0 -16.0 -7•0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending QTR FYTD 1 YR 3 YR 5 YR Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 • Investment 3.80 (53) 3.80 (53) 11.90 (42) 8.83 (34) 14.61 (47) 40 Investment 15.38 (25) -0.63 (57) 19.64 (39) 19.30 (71) 30.16 (39) O Index 3.82 (52) 3.82 (52) 11.96 (41) 8.87 (32) 14.66 (44) 0 Index 15.43 (24) -0.61 (57) 19.73 (37) 19.34 (70) 30.20 (38) Median 3.84 3.84 10.98 8.27 14.52 Median 13.19 -0.37 18.80 21.13 29.17 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Dec-2015 Sep-2015 Jun-2015 Investment 3.86 (62) 2.41 (40) 1.35 (30) 7.03 (30) -6.47 (43) 0.27 (50) Index 3.85 (63) 2.46 (38) 1.35 (31) 7.04 (29) -6.44 (43) 0.28 (49) Median 4.33 1.89 0.46 6.16 -6.79 0.27 Page 29 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 2.0 1.5 1.0 0.5 0.0 -0.5 Rhumbline S&P 500 Equity S&P 500 Index ■ Alpha -0.06 0.00 Beta 1.00 1.00 ■ Sharpe Ratio 1.33 1.33 Treynor Ratio 0.09 0.09 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 1.6 0.8 0.0 -0.8 -1.6 -2.4 Rhumbline S&P 500 Equity S&P 500 Index ■ Actual Correlation 1.00 1.00 Information Ratio -1.20 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.04 0.00 Benchmark: S&P 500 Index Page 30 Portfolio Comparison Rhumbline S&P 500 As of December 31, 2016 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 2.4 1.8 1.2 0.6 0.0 -0.6 Rhumbline S&P 500 Equity S&P 500 Index ■ Alpha -0.04 0.00 Beta 1.00 1.00 ■ Sharpe Ratio 1.59 1.60 Treynor Ratio 0.14 0.14 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 1.6 0.8 0.0 -0.8 -1.6 Rhumbline S&P 500 Equity S&P 500 Index ■ Actual Correlation 1.00 1.00 Information Ratio -1.12 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.04 0.00 Historical Statistics 3 Years Return Standard Sharpe Up Market Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Strategy Review Rhumbline S&P 400 Equity I S&P MidCap 400 Index As of December 31, 2016 Historical Statistics 5 Years Return Standard Sharpe Up Market Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Investment 9.03 8.76 1.03 99.76 9.00 99.48 3.00 Investment 15.30 10.64 1.41 99.72 16.00 99.46 4.00 Index 9.04 8.80 1.03 100.00 9.00 100.00 3.00 Index 15.33 10.66 1.41 100.00 16.00 100.00 4.00 Risk and Return 3 Years 9.1 9.0 8.7 8.8 8 Risk (Standard Deviation %) Investment O Index 3 Year Rolling Percentile Rank IM U.S. Mid Cap Equity (SA+CF) 0.0 c 25.0 m 2 50.0 `♦♦♦ d 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 1 (5%) 8 (40%) 11 (55%) 0 (0%) - Index 20 1 (5%) 8 (40%) 11 (55%) 0 (0%) Risk and Return 5 Years 15.4 e E 15.3 • d K 15.2 10.6 10.7 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM U.S. Mid Cap Equity (SA+CF) 0.0 c 25.0 m 2 50.0 00.0 m d 75.0 100.0 - 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 0 (0%) 11 (55%) 9 (45%) 0 (0%) Index 20 0 (0%) 10 (50%) 10 (50%) 0 (0%) Page 31 Peer Group Analysis - IM U.S. Mid Cap Equity (SA+CF) 32.0 28.0 24.0 20.0 16.0 E 12.0 8.0 O 4.0 0.0-10 -4.0 • O 3 YR 5 YR Median 3.90 3.90 12.12 7.13 14.61 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Strategy Review Rhumbline SAP 400 Equity I S&P MidCap 400 Index As of December 31, 2016 Peer Group Analysis - IM U.S. Mid Cap Equity (SA+CF) 44.0 38.0 32.0 26.0 20.0 O 14.0 • O 8.0 2.0 0p -4.0 -10.0 -16.0 • O 0 O 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Investment 15.21 (28) 1.45 (52) 11.81 (67) 27.55 (57) 28.90 (36) O Index 15.33 (27) 1.40 (53) 11.82 (67) 27.68 (56) 28.54 (41) Median 11.35 1.47 13.49 28.01 27.30 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec-2015 Sep-2015 Jun-2015 Investment 4.13 (69) 3.96 (20) 3.72 (18) 2.61 (66) -8.44 (49) -1.05 (67) Index 4.14 (67) 3.99 (19) 3.78 (16) 2.60 (66) -8.50 (53) -1.06 (69) Median 4.77 2.42 0.66 3.25 -8.48 -0.38 Page 32 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 1.6 W, 0.8 0.4 0.0 Rhumbline S&P 400 Equity S&P MidCap 400 Index ■ Alpha 0.03 0.00 Beta 1.00 1.00 ■ Sharpe Ratio 1.03 1.03 Treynor Ratio 0.09 0.09 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 1.2 0.8 0.4 0.0 -0.4 -0.8 Rhumbline S&P 400 Equity S&P MidCap 400 Index ■ Actual Correlation 1.00 1.00 Information Ratio -0.15 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.06 0.00 Benchmark: S&P MidCap 400 Index Page 33 Portfolio Comparison Rhumbline S&P MidCap 400 As of December 31, 2016 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 1.8 1.2 0.6 IL 0.0 -0.6 Rhumbline S&P 400 Equity S&P MidCap 400 Index ■ Alpha 0.00 0.00 Beta 1.00 1.00 ■ Sharpe Ratio 1.41 1.41 Treynor Ratio 0.15 0.15 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 1.5 1.0 - 0.5 0.0 -0.5 -1.0 Rhumbline S&P 400 Equity S&P MidCap 400 Index ■ Actual Correlation 1.00 1.00 Information Ratio -0.47 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.07 0.00 Strategy Review Rhumbline S&P 600 Equity I S&P SmallCap 600 As of December 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Up Down Up Down Market Up Market Down Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 9.47 11.31 0.86 99.80 10.00 99.52 2.00 Investment 16.57 11.64 1.39 99.72 17.00 99.71 3.00 Index 9.47 11.35 0.86 100.00 10.00 100.00 2.00 Index 16.62 11.68 1.39 100.00 17.00 100.00 3.00 Risk and Return 3 Years 9.5 9.4 11.3 11 Risk (Standard Deviation %) Investment O Index 3 Year Rolling Percentile Rank IM U.S. Small Cap Equity (SA+CF) 0.0 c 25.0 m m m `� 50.0 Opp m a E d 0: 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 1 (5%) 18 (90%) 1 (5%) 0 (0%) - Index 20 1 (5%) 18 (90%) 1 (5%) 0 (0%) Risk and Return 5 Years 16.8 E d K 16.7 16.6 40 16.5 11.6 11.7 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM U.S. Small Cap Equity (SA+CF) 0.0 1 c 25.0 m m 2� - 50.0 � `m a c d 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 2 (10%) 13 (65%) 5 (25%) 0 (0%) Index 20 2 (10%) 14 (70%) 4 (20%) 0 (0%) Page 34 Strategy Review Rhumbline S&P 600 Equity I S&P SmallCap 600 As of December 31, 2016 Peer Group Analysis - IM U.S. Small Cap Equity (SA+CF) Peer Group Analysis - IM U.S. Small Cap Equity (SA+CF) 40.0 52.0 35.0 44.0 30.0 36.0 • O • O • O 25.0 28.0 20.0 20.0 • O • O 3 15.0 12.0 • O • O 10.0 • O • O 4.0 • O 5.0 -4.0 0.0 -12.0 -5.0 -20.0 -10.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending QTR FYTD 1 YR 3 YR 5 YR Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 • Investment 11.11 (34) 11.11 (34) 26.41 (25) 9.47 (26) 16.57 (31) 40 Investment 18.00 (26) 3.90 (36) 5.79 (54) 31.40 (56) 33.27 (36) 0 Index 11.13 (33) 11.13 (33) 26.56 (24) 9.47 (26) 16.62 (30) 0 Index 18.12 (24) 3.81 (37) 5.74 (55) 31.51 (55) 33.35 (36) Median 9.08 9.08 20.87 7.78 15.45 Median 14.58 2.40 6.13 32.17 31.60 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Dec-2015 Sep-2015 Jun-2015 Investment 7.19 (61) 3.46 (46) 2.59 (23) 3.72 (36) -9.22 (33) 0.22 (59) Index 7.20 (61) 3.48 (45) 2.66 (22) 3.72 (36) -9.27 (34) 0.19 (60) Median 7.73 3.24 -0.05 3.10 -10.27 0.54 Page 35 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 1.2 0.9 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 2.0 1.5 Portfolio Comparison Rhumbline S&P 600 As of December 31, 2016 0.6 1.0 0.3 0.5 0.0 0.0 Rhumbline S&P 600 Equity S&P SmallCap 600 Rhumbline S&P 600 Equity S&P SmallCap 600 ■ Alpha 0.03 0.00 ■ Alpha 0.01 0.00 Beta 1.00 1.00 Beta 1.00 1.00 ■ Sharpe Ratio 0.86 0.86 ■ Sharpe Ratio 1.39 1.39 Treynor Ratio 0.10 0.10 Treynor Ratio 0.16 0.16 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 1.2 1.4 0.8 0.7 0.4 0.0 0.0 -0.7 -0.4 Rhumbline S&P 600 Equity S&P SmallCap 600 ■ Actual Correlation 1.00 1.00 Information Ratio -0.10 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.06 0.00 Benchmark: S&P SmallCap 600 Page 36 -1.4 Rhumbline S&P 600 Equity S&P SmallCap 600 ■ Actual Correlation 1.00 1.00 Information Ratio -0.74 N/A ■ R-Squared 1.00 1.00 Tracking Error 0.06 0.00 Historical Statistics 3 Years Return Standard Sharpe Up Market Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Strategy Review Highland Capital Equity I Russell 1000 Growth Index As of December 31, 2016 Historical Statistics 5 Years Return Standard Sharpe Up Down Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Investment 6.07 7.45 0.82 85.44 8.00 143.85 4.00 Investment 14.21 11.16 1.26 99.43 15.00 100.64 5.00 Index 8.55 6.27 1.33 100.00 11.00 100.00 1.00 Index 14.50 9.60 1.47 100.00 17.00 100.00 3.00 Risk and Return 3 Years 9.6 9.0 8.4 - 7.8 c iu 7.2 6.6 6.0 5.4 6.0 6.2 6.4 6.6 6.8 7.0 7.2 7.4 7.6 7.8 Risk (Standard Deviation %) Investment 0 Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA+CF) 0.0 c 25.0 ��...�� O 2 50.0 10 c m Of 75.0 100.0 9 @ 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Risk and Return 5 Years 14.6 14.5 14.4 c � 14.3 14.2 14.1 9.0 9.2 9.4 9.6 9.8 10.0 10.2 10.4 10.6 10.8 11.0 11.2 11.4 11.6 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA+CF) 0.0 25.0 m 50.0 a c v Of 75.0 100.0 - 3/12 9/12 3/13 9/13 3114 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 4 (20%) 3 (15%) 8 (40%) 5 (25%) - Investment 18 6 (33%) 3 (17%) 8 (44%) 1 (6%) - Index 20 0 (0%) 17 (85%) 3 (15%) 0 (0%) - Index 20 0 (0%) 20 (100%) 0 (0%) 0 (0%) Page 37 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) 20.0 17.0 14.0 11.0 8.0 O E 5.0 2.0 O O -1.0 -4.0 -7.0 • O 3 YR 5 YR Median 0.18 0.18 4.60 7.22 13.94 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Strategy Review Highland Capital Equity I Russell 1000 Growth Index As of December 31, 2016 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) 40.0 35.0 30.0 25.0 20.0 O 15.0 O 10.0 5.0 0.0 -5.0 -10.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Investment 6.68 (93) 4.64 (34) 16.29 (70) 28.73 (7) 27.51 (51) O Index 13.76 (22) 3.17 (56) 19.15 (39) 19.27 (65) 29.19 (38) Median 11.64 3.61 18.13 20.27 27.63 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec-2015 Sep-2015 Jun-2015 Investment 4.20 (71) -0.43 (75) -1.76 (55) 4.68 (87) -7.61 (81) 1.66 (20) Index 4.58 (61) 0.61 (50) 0.74 (22) 7.32 (47) -5.29 (34) 0.12 (67) Median 5.16 0.60 -1.55 7.05 -5.94 0.60 Page 38 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 4.0 2.0 0.0 - -2.0 -4.0 Highland Capital Equity Russell 1000 Growth Index ■ Alpha -2.83 0.00 Beta 1.07 1.00 ■ Sharpe Ratio 0.82 1.33 Treynor Ratio 0.06 0.08 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 4.0 2.0 0.0 0 M 0 lb -2.0 Highland Capital Equity Russell 1000 Growth Index ■ Actual Correlation 0.90 1.00 Information Ratio -0.69 N/A ■ R-Squared 0.81 1.00 Tracking Error 3.27 0.00 Benchmark: Russell 1000 Growth Index Page 39 Portfolio Comparison Highland Capital Equity As of December 31, 2016 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 2.0 1.0 0.0 -1.0 -2.0 Highland Capital Equity Russell 1000 Growth Index ■ Alpha -1.35 0.00 Beta 1.09 1.00 ■ Sharpe Ratio 1.26 1.47 Treynor Ratio 0.13 0.14 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 6.0 4.5 3.0 1.5 0.0 ■ ■ ■ -1.5 Highland Capital Equity Russell 1000 Growth Index ■ Actual Correlation 0.94 1.00 Information Ratio -0.03 N/A ■ R-Squared 0.88 1.00 Tracking Error 4.02 0.00 Strategy Review Highland Capital Fixed Income I Bloomberg Barclays U.S. Aggregate Index As of December 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market Up Up Market Down Down Return Standard Sharpe Market Up Up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 3.04 3.31 0.89 96.02 9.00 88.44 3.00 Investment 2.19 3.25 0.66 98.00 13.00 97.47 7.00 Index 3.03 3.38 0.87 100.00 9.00 100.00 3.00 Index 2.23 3.08 0.70 100.00 14.00 100.00 t"lu Risk and Return 3 Years 3.1 3.0 3.1 3.2 3.3 3. Risk (Standard Deviation %) Investment 0 Index 3 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (SA+CF) 0.0 c 25.0 d 50.0 a. c m 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Risk and Return 5 Years 2.4 2.3 d K 2.2 I t 2.1 3.0 3.1 3.2 3.3 Risk (Standard Deviation %) Investment 0 Index 5 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (SA+CF) 0.0 25.0 A Of d o d a c 50.0 v Of 75.0 100.0 3/12 9/12 3/13 9/13 3114 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 20 0 (0%) 0 (0%) 6 (30%) 14 (70%) - Investment 20 0 (0%) 0 (0%) 0 (0%) 20 (100 %) - Index 20 0 (0%) 0 (0%) 0 (0%) 20 (100%) - Index 20 0 (0%) 0 (0%) 0 (0%) 20 (100%) Page 40 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) 8.0 6.0 4.0 •Q Q 2.0 3 N 0.0 -2.0 • Q • Q -4.0 • Q 5 YR Median -2.81 -2.81 3.10 3.34 2.82 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Strategy Review Highland Capital Fixed Income I Bloomberg Barclays U.S. Aggregate Index As of December 31, 2016 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) 12.0 10.0 8.0 6.0 Q Q 4.0 Q i 3 d Q 2.0 0.0 Q -2.0 • -4.0 -6.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 49 Investment 6.51 (19) 2.22 (88) 3.51 (94) -2.54 (99) 6.07 (72) 0 Index 5.19 (80) 2.94 (59) 3.96 (80) -1.68 (80) 5.16 (91) Median 5.66 3.02 4.50 -1.26 6.61 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec-2015 Sep-2015 Jun-2015 Investment 0.58 (61) 2.41 (43) 3.61 (3) -0.21 (12) 1.21 (43) -1.58 (48) Index 0.46 (78) 2.21 (71) 3.03 (50) -0.57 (72) 1.23 (40) -1.68 (73) Median 0.69 2.34 3.03 -0.45 1.15 -1.60 Page 41 Risk / Reward Historical Statistics 3 Years Ending December 31, 2016 1.2 0.9 0.6 0.3 0.0 - Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index ■ Alpha 0.13 0.00 Beta 0.96 1.00 ■ Sharpe Ratio 0.89 0.87 Treynor Ratio 0.03 0.03 Benchmark Relative Historical Statistics 3 Years Ending December 31, 2016 1.2 0.9 0.6 0.3 0.0 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index ■ Actual Correlation 0.98 1.00 Information Ratio 0.02 N/A ■ R-Squared 0.96 1.00 Tracking Error 0.67 0.00 Benchmark: Bloomberg Barclays U.S. Aggregate Index Page 42 Portfolio Comparison Highland Capital Fixed Income As of December 31, 2016 Risk / Reward Historical Statistics 5 Years Ending December 31, 2016 1.6 1.2 0.8 0.4 0.0 - -0.4 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index ■ Alpha -0.10 0.00 Beta 1.03 1.00 ■ Sharpe Ratio 0.66 0.70 Treynor Ratio 0.02 0.02 Benchmark Relative Historical Statistics 5 Years Ending December 31, 2016 1.2 0.8 0.4 0.0 -0.4 Highland Capital Fixed Income Bloomberg Barclays U.S. Aggregate Index ■ Actual Correlation 0.98 1.00 Information Ratio -0.05 N/A ■ R-Squared 0.95 1.00 Tracking Error 0.71 0.00 Strategy Review Oppenheimer Dreyfus (OIBAX) (DIBAX) I Citigroup Non-U.S. World Government Bond As of December 31, 2016 Historical Statistics 3 Years Return Standard Sharpe Up Market up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Historical Statistics 5 Years Return Standard Sharpe Up Market up Market Down Down Deviation Ratio Capture Quarters Capture Quarters Investment 0.06 6.50 0.03 41.37 7.00 30.24 5.00 Investment 1.12 6.03 0.20 51.93 13.00 23.53 7.00 Index -2.18 9.93 -0.18 100.00 6.00 100.00 6.00 Index -1.94 8.49 -0.20 100.00 9.00 100.00 11.00 Risk and Return 3 Years 0.6 0.0 • -0.6 e E -1.2 d K -1.8 -2.4 -3.0 5.6 6.0 6.4 6.8 7.2 7.6 8.0 8.4 8.8 9.2 9.6 10.0 10.4 10.8 Risk (Standard Deviation %) Investment O Index 3 Year Rolling Percentile Rank IM International Fixed Income All (MF) 0.0 c 25.0 m m A 50.0 ` E ,`� 75.0 �I, 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 14 0 (0%) 4 (29%) 10 (71%) 0 (0%) - Index 20 0 (0%) 1 (5%) 3 (15%) 16 (80%) Risk and Return 5 Years 2.4 1.6 0.8 0.0 c d -0.8 K -1.6 -2.4 -3.2 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.5 7.8 8.1 8.4 8.7 9.0 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM International Fixed Income All (MF) 0.0 c 25.0 m m c m a 50.0 ,N E �' _ d 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 6 0 (0%) 0 (0%) 6 (100%) 0 (0%) Index 20 0 (0%) 1 (5%) 4 (20%) 15 (75%) Page 43 Peer Group Analysis - IM International Fixed Income All (MF) 30.0 25.0 20.0 15.0 10.0 E 5.0 Q 0.0 -5.0 -10.0 Q Q -15.0 Strategy Review Oppenheimer Dreyfus (OIBAX) (DIBAX) I Citigroup Non-U.S. World Government Bond As of December 31, 2016 Peer Group Analysis - IM International Fixed Income All (MF) 36.0 28.0 20.0 12.0 Q c 4.0 Q -4.0 Q O Q -12.0 -20.0 -28.0 3 YR 5 YR Median -3.10 -3.10 9.51 2.11 3.71 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Investment 9.59 (81) -4.81 (31) 2.98 (69) -2.82 (42) 7.90 (70) O Index 12.61 (56) -7.01 (45) -0.99 (89) -5.63 (81) 3.45 (91) Median 13.07 -7.89 5.35 -3.50 14.50 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec-2015 Sep-2015 Jun-2015 Investment 2.64 (67) 2.71 (75) 5.03 (39) -1.02 (83) -5.70 (69) 1.42 (13) Index 0.60 (94) 4.04 (47) 9.10 (3) -1.38 (90) 1.71 (2) -1.54 (77) Median 3.46 3.88 4.64 0.51 -4.28 -0.33 Page 44 Strategy Review American Realty I NCREIF Property Index As of December 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Up Down Up Down Market Up Market Down Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 10.84 1.93 5.27 98.58 12.00 N/A N/A Investment N/A N/A N/A N/A N/A N/A N/A Index 11.02 1.12 8.96 100.00 12.00 N/A N/A Index 10.92 0.89 11.24 100.00 20.00 N/A N/A Risk and Return 3 Years 11.1 E d 11.0 10.9 10.8 1 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 Risk (Standard Deviation %) Investment 0 Index 3 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA+CF) 0.0 25.0 m � 2 50.0 ,, � 75.0 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 7 0 (0%) 0 (0%) 0 (0%) 7 (100%) - Index 20 1 (5%) 1 (5%) 1 (5%) 17 (85%) Risk and Return 5 Years 11.0 E d K 10.9 0.8 0.9 Risk (Standard Deviation %) Investment O Index 5 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA+CF) 0.0 25.0 m E 50.0 d � 75.0 � 100.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count Investment 0 0 0 0 0 Index 20 7 (35%) 1 (5%) 2 (10%) 10 (50%) Page 45 Strategy Review American Realty NCREIF Property Index As of December 31, 2016 Peer Group Analysis - IM U.S. Private Real Estate (SA+CF) Peer Group Analysis - IM U.S. Private Real Estate (SA+CF) 23.0 40.0 36.0 20.0 32.0 17.0 28.0 14.0 24.0 11.0 Q Q E ` 3 20.0 3 � � N 8.0 Q 16.0 Q 5.0 12.0 Q Q Q Q 8.0 2.0 Q Q • • 4.0 -1.0 0.0 -4•0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending QTR FYTD 1 YR 3 YR 5 YR Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 • Investment 1.20 (87) 1.20 (87) 7.09 (96) 10.84 (94) N/A 40 Investment 9.03 (94) 14.05 (71) 12.45 (72) 12.30 (73) N/A O Index 1.73 (74) 1.73 (74) 7.97 (88) 11.02 (93) 10.92 (93) 0 Index 9.22 (93) 13.48 (77) 11.26 (91) 11.00 (83) 11.00 (75) Median 2.29 2.29 9.52 12.77 13.18 Median 11.49 16.17 13.17 13.35 13.03 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Dec-2015 Sep-2015 Jun-2015 Investment 1.83 (66) 1.25 (95) 2.63 (52) 3.03 (78) 3.39 (63) 3.74 (50) Index 1.77 (70) 2.03 (67) 2.21 (65) 2.91 (90) 3.09 (75) 3.14 (72) Median 2.09 2.50 2.64 3.63 3.63 3.74 Page 46 Total Policy Historical Hybrid Composition Allocation Mandate Mar-1992 Bloomberg Barclays U.S. Aggregate Index S&P 500 Index S&P MidCap 400 Index Russell 1000 Growth Index S&P SmallCap 600 MSCI EAFE Index Oct-2010 Bloomberg Barclays U.S. Aggregate Index S&P 500 Index S&P MidCap 400 Index Russell 1000 Growth Index MSCI EAFE Index S&P SmallCap 600 Citigroup Non-U.S. World Government Bond Apr-2012 Bloomberg Barclays U.S. Aggregate Index S&P 500 Index S&P MidCap 400 Index Russell 1000 Growth Index MSCI EAFE Index S&P SmallCap 600 Citigroup Non-U.S. World Government Bond NCREIF Property Index Oct-2015 Bloomberg Barclays U.S. Aggregate Index S&P 500 Index S&P MidCap 400 Index Russell 1000 Growth Index MSCI EAFE Index S&P SmallCap 600 Citigroup Non-U.S. World Government Bond NCREIF Property Index Page 47 Benchmark History Investment Policy Benchmarks As of December 31, 2016 Weight (%) Total Equity Historical Hybrid Composition Allocation Mandate Weight (` Jun-2000 35.00 S&P 500 Index 100.00 25.00 10.00 Jan-2003 10.00 S&P 500 Index 80.00 10.00 S&P MidCap 400 Index 20.00 10.00 Jan-2004 S&P 500 Index 60.00 31.00 S&P MidCap 400 Index 20.00 25.00 S&P SmallCap 600 20.00 10.00 Jan-2007 10.00 S&P 500 Index 62.00 10.00 S&P MidCap 400 Index 15.00 10.00 S&P SmallCap 600 15.00 4.00 MSCI EAFE Index 8.00 Oct-2007 29.00 S&P 500 Index 38.40 25.00 S&P MidCap 400 Index 15.40 10.00 S&P SmallCap 600 15.40 10.00 MSCI EAFE Index 15.40 10.00 Russell 1000 Growth Index 15.40 10.00 4.00 2.00 26.00 25.00 10.00 10.00 10.00 Total Fixed Income Historical Hybrid Composition 10.00 Allocation Mandate Weight 4.00 5.00 Apr-1994 Bloomberg Barclays U.S. Aggregate Index 89.00 Citigroup Non-U.S. World Government Bond 11.00 Palm Beach Gardens Police Review of International Bond Funds Performance Review Dreyfus Intl Borl (DIBAX) As of December 31. 2016 Mutual Fund Info from Lipper Summary Description Product Name : Dreyfus Intl Bond;A (DIBAX) The investment seeks to maximize total return through capital appreciation and income. To pursue its Fund Family: Dreyfus Corporation goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment Ticker: DIBAX purposes, in fixed -income securities. It also normally invests at least 65% of its assets in non-U.S. dollar Peer Group : IM International Fixed Income (MF) denominated fixed -income securities of foreign governments and companies located in various Benchmark : Fund Inception : Citigroup Non-U.S. World Government Bond 12/30/2005 countries, including emerging markets. The fund may invest up to 25% of its assets in emerging markets Portfolio Manager: Leduc/Murphy/Srivastava generally and up to 5% of its assets in any single emerging market country. It is non -diversified. Total Assets : $118 Million Total Assets Date : 12/31/2016 Gross Expense : 1.12% Net Expense : 1.12% Turnover: 217% Peer Group Analysis - IM International Fixed Income (MF) 28.00 20.00 12.00 • c 4.00 • O -4.00 O O O • 0 -12.00 0 -20.00 QTR YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 • Dreyfus Intl Bond,A (DIBAX) -8.15 (70) 1.43 (66) 1.43 (66) -0.69 (43) 0.56 (51) -6.76 (62) 3.58 (24) -3.92 (59) 9.28 (37) 3.21 (44) O Citigroup Non-U.S. World Government Bond -10.84 (94) 1.81 (62) 1.81 (62) -2.18 (65) -1.94 (79) -5.54 (46) -2.68 (72) -4.56 (66) 1.50 (97) 5.17 (21) Median -7.04 2.97 2.97 -0.98 0.56 -5.87 0.32 -3.68 6.96 2.75 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Dec-2015 Sep-2015 Jun-2015 Dreyfus Intl Bond;A (DIBAX) 1.85 (43) 2.35 (56) 5.94 (49) -1.59 (86) -1.88 (66) -3.38 (84) Citigroup Non-U.S. World Government Bond 0.60 (80) 4.04 (2) 9.10 (1) -1.38 (78) 1.71 (4) -1.54 (43) IM International Fixed Income (MF) Median 1.57 2.52 5.75 -0.70 -1.42 -1.67 Page 49 3 Yr Rolling Under/Over Performance - 5 Years 18.0 Over m 12.0 Performance 0 a e 6.0 0 0 a a Op 00 m 0.0 N -6.0 r -12.0 -12.0 -6.0 0.0 6.0 Citigroup Non-U.S. World Government Bond (% ) ® Over Performance 0 Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 0.60 0.00 -0.60 • Performance Review Dreyfus Intl Bond;A (DIBAX) As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years x 0.00 dm 25.00 O . . p . O • • O O O O O O • p®®® O• 50.00 0 O O O O p 0 O 7s.00 p p 0 Y Under d O O p p O O Performance K 100.00 12.0 18.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total 5-25 25-Median Median-75 75-95 Period Count Count Count Count -1.20 -1.80 -2.40 O -3.00 5.44 5.78 6.12 6.46 6.80 7.14 7.48 7.82 Risk (Standard Deviation %) Return Standard Deviation • Dreyfus Intl Bond;A (DIBAX) 20 O Citigroup Non-U.S. World Government Bond 20 Peer Group Scattergram - 5 Years 1.70 0.85 40 E 0.00 -0.85 K -1.70 -2.55 8.16 5.13 5.40 5.67 5.94 6.21 6.48 Risk (Standard Deviation %) Return 2 (10% 18 (90% 0 (0%) 0 (0%) 0 (0%) 3 (15% 8 (40% 9 (45% 6.75 0 7.02 Standard Deviation • Dreyfus Intl Bond;A (DIBAX) -0.69 6.03 • Dreyfus Intl Bond;A (DIBAX) 0.56 5.61 O Citigroup Non-U.S. World Government Bond -2.18 7.78 O Citigroup Non-U.S. World Government Bond -1.94 6.91 - Median -0.98 7.11 - Median 0.56 6.53 Historical Statistics - 3 Years 7.29 Tracking Up Market Down Market Alpha Information Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Dreyfus Intl Bond;A (DIBAX) 4.13 55.64 50.72 0.75 0.34 -0.10 0.66 4.53 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A -0.26 1.00 6.07 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Dreyfus Intl Bond;A (DIBAX) 3.81 71.40 52.31 1.90 0.64 0.11 0.68 4.09 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A -0.26 1.00 5.36 Page 50 Mutual Fund Info from Lipper 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 : $1,429 Million Total Assets Date : 12/31/2016 Gross Expense : 1.02% Net Expense: 1.02% Turnover: 128% Peer Group Analysis - IM International Fixed Income (MF) 28.00 20.00 12.00 c ' 4.00 m -4.00 -12.00 0 -20.00 QTR Performance Review Oppenheimer Intl Bd;A (OIBAX) As of December 31. 2016 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. O O O � � 0 0 YTD 1 YR 3 YR 5 YR 2015 2014 2013 2012 2011 • Oppenheimer Intl Bd;A (OIBAX) -4.40 (37) 6.13 (19) 6.13 (19) 0.83 (27) 1.71 (35) -3.72 (28) 0.32 (51) -4.16 (62) 10.77 (25) -0.28 (80) O Citigroup Non-U.S. World Government Bond -10.84 (94) 1.81 (62) 1.81 (62) -2.18 (65) -1.94 (79) -5.54 (46) -2.68 (72) -4.56 (66) 1.50 (97) 5.17 (21) Median -7.04 2.97 2.97 -0.98 0.56 -5.87 0.32 -3.68 6.96 2.75 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2016 Jun-2016 Mar-2016 Dec-2015 Sep-2015 Jun-2015 Oppenheimer Intl Bd;A (OIBAX) 3.47 (6) 3.08 (26) 4.08 (64) -0.96 (54) -1.59 (57) -1.88 (53) Citigroup Non-U.S. World Government Bond 0.60 (80) 4.04 (2) 9.10 (1) -1.38 (78) 1.71 (4) -1.54 (43) IM International Fixed Income (MF) Median 1.57 2.52 5.75 -0.70 -1.42 -1.67 Page 51 3 Yr Rolling Under/Over Performance - 5 Years 15.0 m Over O 10.0 Performance 0 pap 5.0 0 0 - O 0.0 00 w E -5.0 a -10.0 -10.0 -5.0 0.0 5.0 Citigroup Non-U.S. World Government Bond (% ) ® Over Performance 0 Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 2.00 • 0.00 c -2.00 -4.00 4.40 4.95 5.50 6.05 6.60 7.15 Risk (Standard Deviation %) Return Performance Review Oppenheimer Intl Bd;A (OIBAX) As of December 31. 2016 3 Yr Rolling Percentile Ranking - 5 Years x 0.00 m v 25.00 0 0 • u • • • • • • 0 50.00 e 0 75.00 0000000 00 00 Under d 0 0 0 0 Performance Of 100.00 10.0 15.0 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 Total 5-25 25-Median Median-75 75-95 Period Count Count Count Count • Oppenheimer Intl Bd;A (OIBAX) 20 1 (5%) 14 (70% 5 (25% 0 (0%) O Citigroup Non-U.S. World Government Bond 20 0 (0%) 3 (15% 8 (40% 9 (45% Peer Group Scattergram - 5 Years 4.00 2.00 • e., E o.00 O -2.00 Q -4.00 7.70 8.25 5.22 5.51 5.80 6.09 6.38 6.67 6.96 7.25 Risk (Standard Deviation %) Standard Return Standard Deviation Deviation • Oppenheimer Intl Bd;A (OIBAX) 0.83 4.98 • Oppenheimer Intl Bd;A (OIBAX) 1.71 5.50 O Citigroup Non-U.S. World Government Bond -2.18 7.78 O Citigroup Non-U.S. World Government Bond -1.94 6.91 - Median -0.98 7.11 - Median 0.56 6.53 Historical Statistics - 3 Years Tracking Up Market Down Market Alpha Information Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Oppenheimer Intl Bd;A (OIBAX) 5.85 39.85 24.67 1.77 0.49 0.17 0.42 3.28 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A -0.26 1.00 6.07 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Oppenheimer Intl Bd;A (OIBAX) 5.39 66.99 37.61 2.76 0.66 0.32 0.51 3.82 Citigroup Non-U.S. World Government Bond 0.00 100.00 100.00 0.00 N/A -0.26 1.00 5.36 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 AndCo compiled this report for the sole use of the client for which it was prepared. AndCo 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. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo 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. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo 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 Bloomberg Barclays. Bloomberg 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, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non -infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. Page 54 Putting clients first. AndCo Consulting 1 (844) 44-ANDCO I And Co Consulting. coin Fomierhv The Bogdahn Group 11 PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals I Meeting of March 9, 2017 APPLICATION TO EXIT THE DROP JACK SCHNUR DATE OF BIRTH 07/14/1963 DATE OF HIRE 05/12/1992 DROP ENTRY DATE 06/03/2012 DATE OF TERMINATION 12/02/2016 FORM OF BENEFIT 1000/0 J&S MONTHLY BENEFIT AMOUNT $6,620.41 SUPPLEMENTAL BENEFIT $ 250.00 RALPH KRANCHIK DATE OF BIRTH DATE OF HIRE DROP ENTRY DATE DATE OF TERMINATION FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT 06/21/1956 08/23/1995 08/01/2012 01/04/2017 10 Year Certain $4,814.54 $ 200.00 CHRIS BARCA DATE OF BIRTH 01/17/1967 DATE OF HIRE 02/26/1992 DROP ENTRY DATE 02/26/2012 DATE OF TERMINATION 02/03/2017 FORM OF BENEFIT 100% J&S MONTHLY BENEFIT AMOUNT $7,524.80 SUPPLEMENTAL BENEFIT $ 250.00 TIM ROMAN DATE OF BIRTH 04/19/1970 DATE OF HIRE 06/12/1995 DROP ENTRY DATE 06/12/2015 DATE OF TERMINATION 02/28/2017 FORM OF BENEFIT 50% J&S MONTHLY BENEFIT AMOUNT $5,446.85 SUPPLEMENTAL BENEFIT $ 250.00 APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (due to retirement 1/1/17) JACK SCHNUR DATE OF RETIREMENT 12/02/2016 DATE OF BIRTH 07/14/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $8,750.00 TAX WITHHOLDING (20%) $1,750.00 TOTAL NET DISTRIBUTION $7,000.00 CURRENT DROP ACCOUNT BALANCE $388,157.06 APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (due to retirement 3/1/17) CHRIS BARCA DATE OF RETIREMENT 02/03/2017 (holding) DATE OF BIRTH 01/17/1967 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $250,000.00 TAX WITHHOLDING (20%) $ 50,000.00 TOTAL NET DISTRIBUTION $200,000.00 CURRENT DROP ACCOUNT BALANCE $511,484.06 TIM ROMAN DATE OF RETIREMENT 02/28/2017 DATE OF BIRTH 04/19/1970 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $50,000.00 TAX WITHHOLDING (20%) $10,000.00 TOTAL NET DISTRIBUTION $40,000.00 CURRENT DROP ACCOUNT BALANCE $103,093.35 APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (1/15/17) WILLIAM BRANDT DATE OF RETIREMENT 09/20/2015 DATE OF BIRTH 09/18/1958 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $21,000.00 TAX WITHHOLDING (33%) $ 4,200.00 TOTAL NET DISTRIBUTION $14,070.00 CURRENT DROP ACCOUNT BALANCE $376,005.28 ROBERT ODELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20%) $ 5,000.00 TOTAL NET DISTRIBUTION $20,000.00 CURRENT DROP ACCOUNT BALANCE $394,269.27 WAYNE SIDEY DATE OF RETIREMENT 04/30/2012 DATE OF BIRTH 11/01/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $16,000.00 TAX WITHHOLDING (20%) $ 3,200.00 TOTAL NET DISTRIBUTION $12,800.00 CURRENT DROP ACCOUNT BALANCE $324,390.05 TODD THOMAS DATE OF RETIREMENT 01/21/2016 DATE OF BIRTH 07/09/1966 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $55,000.00 TAX WITHHOLDING (25%) $13,750.00 TOTAL NET DISTRIBUTION $41,250.00 CURRENT DROP ACCOUNT BALANCE $425,484.67 JOHN BOYLE APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (2/15/17) DATE OF RETIREMENT DATE OF BIRTH TYPE OF DISTRIBUTION TOTAL GROSS DISTRIBUTION TAX WITHHOLDING (20%) TOTAL NET DISTRIBUTION CURRENT DROP ACCOUNT BALANCE SHEREE BROWN DATE OF RETIREMENT DATE OF BIRTH TYPE OF DISTRIBUTION TOTAL GROSS DISTRIBUTION TAX WITHHOLDING (20%) TOTAL NET DISTRIBUTION CURRENT DROP ACCOUNT BALANCE 08/26/2016 01/03/1694 PARTIAL LUMP SUM -CASH $30,000.00 $ 6,000.00 $24,000.00 $463,523.06 05/01/2014 10/01/1954 PARTIAL LUMP SUM -CASH $27,000.00 $ 5,400.00 $21,600.00 $124,111.35 GWEN FLEMING DATE OF RETIREMENT 10/10/2014 DATE OF BIRTH 12/04/1963 TYPE OF DISTRIBUTION CLOSEOUT -CASH TOTAL GROSS DISTRIBUTION $15,451.97 TAX WITHHOLDING (20%) $ 3,090.39 TOTAL NET DISTRIBUTION $12,361.58 CURRENT DROP ACCOUNT BALANCE $15,451.97 RICHARD GEIST DATE OF RETIREMENT 01/21/2016 DATE OF BIRTH 05/22/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $20,000.00 TAX WITHHOLDING (20%) $ 4,000.00 TOTAL NET DISTRIBUTION $16,000.00 CURRENT DROP ACCOUNT BALANCE $657,156.99 ROBERT ODELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $20,000.00 TAX WITHHOLDING (20%) $ 4,000.00 TOTAL NET DISTRIBUTION $16,000.00 CURRENT DROP ACCOUNT BALANCE $347,846.20 JEFF MAIN JOSEPH SHEEHAN DATE OF RETIREMENT DATE OF BIRTH TYPE OF DISTRIBUTION TOTAL GROSS DISTRIBUTION TAX WITHHOLDING (20%) TOTAL NET DISTRIBUTION CURRENT DROP ACCOUNT BALANCE 12/29/2016 04/28/1960 PARTIAL LUMP SUM -CASH $25,000.00 $ 5,000.00 $20,000.00 $143,192.21 DATE OF RETIREMENT 01/29/2016 DATE OF BIRTH 03/28/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $15,000.00 TAX WITHHOLDING (25%) $ 3,750.00 TOTAL NET DISTRIBUTION $11,250.00 CURRENT DROP ACCOUNT BALANCE $454,080.15 CHAIRMAN ,SECRETARY , DATE Pension Resource Centers Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Meeting Check Number Date I Payee and Description Amount 2814 December 5, 2016 Gabriel Roeder Smith & Company $3,874.00 Actuarial Services Rendered through 10-31-2016 2815 December 5, 2016 Pension Resource Center $2,575.00 Administrative Fee - December 2016 2816 December 5, 2016 United Members Insurance, Inc. $5,815.00 Markel American Ins Premium 12/1/16-12/1/17 2817 January 1, 2017 City of Palm Beach Gardens $28,826.64 Retiree Insurance 2818 January 11, 2017 Klausner, Kaufman, Jensen & Levinson $45.00 Legal Services Rendered through 11-30-16 2819 January 11, 2017 Pension Resource Center $2,575.00 Administrative Fee - January 2017 2820 February 1, 2017 City of Palm Beach Gardens $28,828.14 Retiree Insurance 2821 January 25, 2017 Rosen Centre Hotel $462.00 Jay Spencer 01/2017 2822 January 25, 2017 FPPTA $500.00 Jay Spencer -Trustee School 01/2017 2823 February 9, 2017 City of Palm Beach Gardens $1,712.96 Retiree Insurance 2824 February 8, 2017 Pension Resource Center $2,575.00 Administrative Fee - February 2017 2825 February 8, 2017 Jay Spencer $530.19 Travel Reimbursement 2826 February 8, 2017 Rhumbline Advisers $1,250.00 Investment Advisory Fee - 4th Quarter 2016 2827 February 8, 2017 Rhumbline Advisers $6,139.00 Investment Advisory Fee - 4th Quarter 2016 2828 February 8, 2017 Highland Capital Management, LLC $28,677.20 Management Fee - 4th Quarter 2016 2829 February 8, 2017 Klausner, Kaufman, Jensen & Levinson $2,497.50 Legal Services Rendered through 12-31-16 2830 February 8, 2017 Gabriel Roeder Smith & Company $1,496.00 Actuarial Services Rendered through 12-31-2016 2831 February 8, 2017 AndCo Consulting $5,374.95 Investment Consulting Fee 2832 February 14, 2017 FPPTA $30.00 Marc Glass CPPT Re-Cert 2016 2833 February 14, 2017 FPPTA $30.00 Greg Mull CPPT Re -Cent 2016 2834 February 14, 2017 FPPTA $30.00 Jay Spencer CPPT Re-Cert 2016 2835 March 1, 2017 City of Palm Beach Gardens $32,868.81 Retiree Insurance 2836 March 2, 2017 Pension Resource Center $2,700.03 Administrative Fee - March 2017 2837 March 2, 2017 Klausner, Kaufman, Jensen & Levinson $765.00 Legal Services Rendered through 1-31-17 2838 March 2, 2017 Gabriel Roeder Smith & Company $4,972.00 Actuarial Services Rendered through 1/31/17 Total: $165,149.42 Paid by Custodian January 10, 2017 Salem Trust $5,503.67 Total $170,653.09 Chair Secretary Date Palm Beach Gardens Police Balance Sheet FY 2017 Account Description October November December January 1000 BB&T 3,525,786.95 633,883.40 508,614.83 417,858.57 1215 A/R Employee Buyback Contributions 2,752.88 2,752.88 2,752.88 2,752.88 1235 Pending Reinvestment/Distribution 0.00 0.00 80,245.78 0.00 1300 Prepaid Other 281,806.27 293,901.09 621,962.81 300,497.67 Salem Trust (Consolidated) 1400 Cash and Equivalents 1,507,178.13 1,896,817.50 1,044,877.13 726,791.10 1410 Equities 7,580,850.92 7,708,228.54 7,870,619.55 8,235,209.21 1420 Fixed Income 17,318,380.00 19,113,462.09 19,884,512.94 19,943,878.58 1430 Other Assets-RhumbLine 44,730,044.07 47,139,625.02 47,443,866.33 48,176,869.99 1450 1 Accrued Income 119,475.17 138,279.37 122,833.79 125,901.05 1461 Due from Brokers 380,356.35 0.00 0.00 0.00 1462 Due to Brokers (453,207.96) (135,985.51) (4,491.87) (3,870.46) Salem Trust Total 71,183,076.68 75,860,427.01 76,362,217.87 77,204,779.47 1604 American Core Realty 6,568,344.12 6,568,344.12 6,548,523.22 6,548,523.22 1616 Dreyfus International Bond 833,310.38 833,310.38 765,414.07 765,414.07 1628 Oppenheimer International Bond 783,904.09 787,044.52 746,240.80 746,240.80 2000 jAccounts Payable 1 (41,661.50) 0.00 1 (46,944.82) (41,441.15) TOTAL RESERVE FUND (MARKET VALUE): 1 83,137,319.87 1 84,979,663.40 1 85,589,027.44 1 85,944,625.53 Palm Beach Gardens Police Statement of Income and Expense FY 2017 Account Description End October End November End December End January Year -To -Date Income: 4000 Employer Contributions 2,843,423.00 0.00 0.00 0.00 2,843,423.00 4100 Employee Contributions 37,768.93 39,088.40 58,667.41 39,743.42 175,268.16 Realized Gain/Loss-Salem Trust 4210 Equities 2,295.17 (998.74) 0.00 6,343.61 7,640.04 4220 Fixed Income (2,505.17) 1,366.84 2,531.14 3,505.76 4,898.57 Unrealized Gain/Loss-Salem Trust 4310 Equities (180,212.37) 188,650.28 162,391.01 274,465.68 445,294.60 4320 Fixed Income (217,086.68) (482,583.73) (24,378.50) 24,898.78 (699,150.13) 4330 Other Assets-RhumbLine (1,183,568.24) 2,408,272.48 1,204,241.31 733,003.66 3,161,949.21 4400 Realized Gain/Loss-Mgr Held 4404 American Core Realty 0.00 0.00 (15,195.12) 0.00 (15,195.12) 4500 Unrealized Gain/Loss-Mgr Held 4504 American Core Realty 0.00 0.00 40,690.04 0.00 40,690.04 4516 Dreyfus International Bond 0.00 0.00 (70,420.61) 0.00 (70,420.61) 4528 Oppenheimer International Bond 0.00 0.00 (44,734.97) 0.00 (44,734.97) 4600 Interest & Dividend Income 58,463.80 64,475.16 116,670.79 55,882.71 295,492.46 4710 Securities Litigation 0.00 1 0.00 1 0.00 1 60.20 60.20 4800 Salem Trust Adjustments 0.00 1 1,308.47 1 0.00 1 0.00 1,308.47 Total Income 1,358,578.44 2,219,579.16 1,430,462.50 1,137,903.82 6,146,523.92 Account Description End October End November End December End January Year -To -Date Expense: 5000 Benefit Payments 289,204.90 289,204.90 289,204.90 303,453.63 1,171,068.33 5010 Beneficiary Payments 7,286.39 7,286.39 7,286.39 7,286.39 29,145.56 5020 Disability Payments 22,735.14 22,735.14 22,735.14 22,735.14 90,940.56 5100 Refund of Contributions 5,219.18 0.00 0.00 0.00 5,219.18 5300 DROP Distributions 0.00 48,000.00 417,500.00 438,250.00 903,750.00 5310 IDROP Distributions -Monthly 6,800.00 6,800.00 6,800.00 6,800.00 27,200.00 6000 Custodian Fees 0.00 0.00 5,503.67 0.00 5,503.67 6020 Investment Consultant Fees 0.00 0.00 5,374.95 0.00 5,374.95 6040 Investment Management Fees 0.00 0.00 54,345.58 0.00 54,345.58 6100 Actuary Fees 0.00 0.00 3,874.00 0.00 3,874.00 6110 Administrator Fees 2,575.00 2,609.20 2,575.00 2,575.00 10,334.20 6130 lBank Charges 182.71 0.00 83.83 198.57 465.11 6150 Legal Fees 0.00 0.00 0.00 45.00 45.00 6200 Trustee Expense -Conference 0.00 0.00 0.00 962.00 962.00 6220 Annual Membership Fees 0.00 600.00 0.00 0.00 600.00 6300 Fiduciary Liability Insurance 949.12 0.00 5,815.00 0.00 6,764.12 Total Expense 334,952.44 377,235.63 821,098.46 782,305.73 2,315,592.26 Reserve Fund Last Period 82,113,693.87 83,137,319.87 84,979,663.40 85,589,027.44 82,113,693.87 Balance To/ From Reserve 1,023,626.00 1,842,343.53 609,364.04 355,598.09 3,830,931.66 TOTAL RESERVE FUND 83,137,319.87 84,979,663.40 85,589,027.44 85,944,625.53 85,944,625.53 KLAUSNER KAUFMAN JENSEN "' LEVINSON MEMORANDUM TO: All Florida Defined Benefit Plans FROM: Klausner Kaufman Jensen & Levinson RE: Pending FRS mortality table DATE: November 23, 2016 The Florida Retirement System ("FRS") Actuarial Assumption Conference recently voted to revise its mortality assumptions for active employees. As set forth below, the new pending FRS mortality table merits discussion with your actuary. As a result of this change, your Board may have the option of immediately adopting the pending FRS table in your next valuation, or continuing to use the current FRS mortality table for another year. Interestingly, rather than assuming that employees would live longer, the new FRS mortality table for active employees seemingly contemplates less improvement in mortality. Additionally, the FRS will be lowering its investment return assumption by 5 basis points from 7.65% to 7.6%. The FRS actuary recommended lowering the investment return assumption to 7%, however, FRS is taking an incremental approach, targeting 7.5% as the longer term objective. Here is a link to the executive summary of the FRS actuarial estimating conference: http:Hedr.state.fl.us/Content/conferences/actuarial/FRSexecutivesumm.pdf This process fits precisely with the trend of what many municipal plans have been doing for the past several years, incrementally lowering their investment return assumption after consultation with their investment consultant and actuary. Our office is available to answer any questions. 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916-1202 • FAX: (954) 916-1232 100079694.DOCX; I } www.robertdklausner.com KLAUSNER KAUFMAN JENSEN'< LEVINSON MEMORANDUM TO: Administrators for all Florida Police or Fire Defined Benefit Plans FROM: Klausner Kaufman Jensen & Levinson RE: New online Annual Report requirement DATE: November 23, 2016 Effective next year, the 2016 Annual Report to the Division of Retirement will be required to be submitted electronically using a new online submission process. Attached are instructions and examples that were circulated at the Division of Retirement's conference earlier this month. While the new online submission process is intended to simplify the process of submitting Annual Reports, we anticipate that there may be a learning curve for some plans during the first year of implementation. Administrators (or other professionals) who prepare the Annual Report should become familiar with the new system prior to the submission deadline. At the outset, each plan must provide the Division of Retirement with the name and email address of a designated contact person ("filer") who will be responsible for filing next year's Annual Report. The Division will create an online account for the filer who will receive an email with a User Id and default Password, along with a link to the new online portal. The Board should ensure that a filer has established an online account and that the default password has been changed. Our office is available to answer any questions. 7080 NORTHWEST 4TH STREET. PLANTATION. FLORIDA 33317 PHONE: (954) 916-1202 • FAX: (954) 916-1232 (00079695.DOCX;I) www.robertdklausner.com INSTRUCTIONS: 1. Each retirement plan must provide to the Division of Retirement the name and email address of the contact person who will be responsible for filing the next Annual Report. The Division of Retirement will create an online account for that person. The contact person will receive an email with the User ID and default Password, and a link to the online portal. The contact person should change this default password at the earliest opportunity. 2. From the online portal website, select "Log In' from the menu and sign in with the provided User ID and current Password. 3. Select "Police and Fire" from the menu on the left of the screen. 4. Once logged in, plan(s) which have been associated with your username will be listed in the drop -down box. If the correct plan(s) is not listed, please contact Local Retirement at 850-922- 0667. 5. Select the plan for the report being filed and click the "Select Plan" button. 6. Click "Start New Police and Fire Report" or select the report to be viewed or revised. 7. Complete the "Plan and Contacts' page. If you wish to provide additional information or description for the item(s) in this section, please use the "Notes' box at the bottom of the screen. 8. Complete the "Board, Ordinances, and Plan Details' page. a. When completing "Board Members' and "Ordinances' you must click "Add" to save the entered information for each data name or ordinance. Clicking "Add" will also create a new data box if you need to add another. b. Use the drop down box to select dates. 9. Complete "Third Party Contacts" page. Use "Notes' at the bottom to provide additional information. 10. Download the templates for each Member Data page (Pension Data, Terminations Data, Statistical Exhibit(s), DROP Plan and Share Plan Rollforward schedules). The templates must be used to submit these pages of the report. You may bypass any pages that are no applicable to your plan. a. The template fields use a specific data format for each field. If the information on the template is in an incorrect format, the file will not upload and you will receive a message stating the error and the line on which the error occurred. b. When you have entered the data in Microsoft Excel and saved the template, select "Browse..." to locate the file and click "Open'. After selecting the file click "Validate File" to upload. The system will populate the on -screen form with the data from the file. Note, if the data contains an error, you may not edit the data in the on -screen form. Corrections will have to be made to the spreadsheet and the file must be re -uploaded. c. Under "Pension Data" complete the Disability Categories 11. For the "Plan Financials and Insurance" section, complete the Assets, Liabilities, Revenue and Expenditures pages. a. Grayed boxes will be auto -filled. b. You must select "Add" to save your record and generate a new box for further additions. 12. Complete "Fund Totals" page. a. Grayed boxes will be auto -filled. b. "Fund Balance Beginning of Year" must equal to "Fund Balance as of Plan Year End Date" from the prior year's annual report. The page will not allow you to "Save and Continue" until these figures match. 13. Complete the "Investment Compliance" page. 14. If applicable, complete "Investment Compliance" page. a. Download form for completion. b. Upload to attach the file. 15. If there are any letters, notes, reports or other documents which you would like to append to this report, please upload them on the "Supporting Documents" page. 16. Once the report is completed and ready to submit to the Division of Retirement, select "Save and Submit". 10/28/2016 Florida Division of Retirement - FRS Online Welcome (/main.aspx) Global Navigation: My Account Plan Details Member Data Plan Financials and Insurance Supporting Documents Profile Settings (/personal/profile settings.asp: s=STgtvezhng53tvetBw9APZBU' Plan Name: City of Apopka Municipal Police Officers' Retirement Trust Fund J 1 bv4ktvRUl. ) Local Retirement File Submit Plan And Contacts (/local_retirement/file submit. s=STgtvezhng53tvetBw9APZBU' Welcome to the electronic annual Police and Fire Report submission portal. Complete the fields below to begin your J1bv4ktyRUl.) submission. Please note that information provided in this report is public record. Reports Summary (/local retirement/ reports sun s=STgtvezhng53tvetBw9APZBU' plan J 1 bv4ktvRUl. ) Actuarial Valiiatinnc -- - (Aocal_retirement/ActuarialVa s=STgtvezhng53tvetBw9APZBU' Name of Fund J1bv4ktvRUL) Police and Fire Apopka (/local_retirement/PoliceAnd s= STgtvezh n g 5 3 tvet Bw9 A PZ BI J1 bv4ktvRUl.) City FRS Home Apopka (http://frs.myflorida.com/) F.A.Q. (/faq/view_faq_pdf.aspx? s=STgtvezhng53tvetBw9APZBU9gi For Plan Year Ending J1bv4ktvRUl.) Forms 09/30/2016 (http://dms.myftorida.com/hume Contact Us (/contact/contact_info.aspx? Plan Contacts s=STgtvezhng 53tvet Bw9AP Z B U 9q l J 1 bv4ktvRU l . ) Log Out (/logout.aspx) The chairman and secretary must be members of the board of trustees. Chairman Name John Smith Address Line 1 Save and Continue https://betainterM.rol.frs.state.fl.usliocat retirementIPoliceAndFire.aspx?s=LIVctMSX4iAav9mjbTc-nVbn461sspwHOUBFolnB[6c. 1/3 10/28/2016 City Apopka Zip :32703 , Save and Continue https:llbetainternal.rol.frs.state.fl.us/local retiremenUPoliceAndFire.aspx7s=LIVctMSX4iAav9mjbTanVbn46isspwMOUBFoln816c. 10/28/2016 Florida Division of Retirement- FRS Online Phone (format: 999-999-9999) 999-999-9999 Email jmsmith@apopkajunkmail.com Plan Contact Person The Municipal Police Officersa€I'Aand FirefightersACI Retirement Trust Funds Office will contact the person listed below for additional information and/or corrections regarding the Annual Report. Please note that this person will be the primary liaison between the division and your pension fund. This person will be responsible for coordinating all responses to the divisions€m's requests for further information. Please help us reduce our operating cost by listing the e-mail address for the contact person. Name Jill Smith Title Plan Administrator Address Line 1 123 ABC St Address Line 2 City Apopka Zip 32703 Phone (format: 999-999-9999) 999-999-9999 Save and Continue https:/Ibetai nterriW.rci.ts.state.fl.usA ocal_retirement/PoliceAndFire.aspx?s=L1VctM SX4iAav9mjbTc-nVbn46isspwHOU BFol n8t6c. 313 10/2812016 Florida Division of Retirement - FRS Online Welcome (/main.aspx) Global Navigation: My Account Plan Details Member Data Plan Financials and Insurance Profile Settings (/personal /profile_settings.asp: s=0_gk3MO2Fr8- Plan Name: City of Apopka Municipal Police Officers' Retirement Trust Fund ijociRBW6jeJA5C6Q2uEMgvirksZ Local Retirement File Submit -��- Board, Ordinances, and Plan Details ( Aocal_retirement/file_submit. s=0_gk3M02Fr8- ijociRBW6jeJA5C6Q2uEMgvirksZ Board of Trustees Reports Summary (/local retirement/reports sun _ s=0_gk3MOZFr8- ijociRBW6jeJA5C6QZuEMgvirksZ Makeup of board specified in: Actuarial Valuations (/local retirement/ActuarialVa Ordinance Number s=0_gk3M02Fr8- ijociRBW6jeJA5C6QZuEMgvirksZ ABCDEF Police and Fire (/local_retirement/PoliceAnd Section s=0_gk3MO2Fr8- ijociRBW6jeJA5C6Q2uEMgvirl Areav 54 FRS Home (http://frs.myflorida.com/) F.A.Q. (/faq/view_faq_pdf.aspx? Dated s=O_gk3MO2Fr8- ijociRBW6jeJA5C6QZuEMgvirksZDL 09/15/2014 Forms (http://dms.myflorida.com/humz Board Members Contact Us (/contact/contact_info.aspx? Name of Trustree s=O—gk3M02Fr8- ijociRBW6jeJA5C6Q2uEMgvirksZDL Albert Appke Log Out (/logout.aspx) Barry Banana Chris Celery Daniel Dill Elvis Elderberry Save and Go Back Name of Trustee Elected/Appointed By Supporting Documents City/District Appointee Delete City/District Appointee Delete Police Officer Delete Police Officer Delete Elected Fifth Member Delete Save and Continue hops://betainternal.rol.frs.state.fl.us4ocal_retirem ent/PoliceAndFi re.aspx?s=L1VclMSX4iAav9mjbTe-nVbn461sspwHOUBFo1n816c. 114 10/28/2016 Florida Division of Retirement- FRS Online h4 Elected/Appointed By City/District Appointee Quarterly Meetings Quarter 1 Meeting Date 01/14/2016 Quarter 2 Meeting Date 04/19/2016 Quarter 3 Meeting Date 07/06/2016 Quarter 4 Meeting Date 09/20/2016 Ordinances Add List all ordinances passed during this reporting period that affect your pension fund. An impact statement must be performed for each new ordinance. Any ordinance having no actuarial impact upon the plan must have a letter from your actuary attesting to this fact. Please upload supplemental documents if they have not been previously submitted to the department. OSrgve and"UuOTPEck Save and Continue Date Passed 2016-123 4/12/2016 Delete s://betainternal.rol.frs.state.fl.usnocal retirement/PoliceAndFire.aspx?s=L1VctMSX4iAav9mjbTc-nVbn461sspwHOUBFoln8l6c. 24 1012812016 http 2016-ABC Ordinance Number Date Passed Florida Division of Retirement - FRS Online 9/21/2016 Delete Chapter Funds Only (Premium Tax Monies) List any benefit improvements implemented during this reporting period and the date effective Ordinance Number Date Passed Miscellaneous Plan Details Chapter Minimum Benefits Does the plan meet all the chapter minimum benefits and standards as of July 1, 2015? io:Bese 91Ad Go Back Save and Continue ........ ............ ...................... ............... ......_............. ......... _ 0/betai nternal.ral.frs.state.fl. usAocal_retirem enl/Poli ceAndFi re.aspx?s=L1VctM SX4iAav9mjbTc-nVbn461sspwHOUBFo1 n8t6c. Add 3/4 10/2812016 Florida Division of Retirement - FRS Online Collective Bargaining Agreement Is service in the plan subject to a collective bargaining agreement? o Yes, No Effective Date 09/30/2016 Period Covered Begin Date 10/01/2016 Period Covered End Date 09/30/2019 Next Scheduled Date 10/01/2020 Defined Contribution Plan Does the plan have a defind contribution plan? o Yes No Date Established 10/01/2016 Detailed Accounting Report Has the plan submitted a detailed accounting report for this filing? o Yes No Date provided to plan Administrative Expense Budget Did the plan operate under Administrative Expense Budget? o Yes No Date provided to plan Save and Go Back Save and Continue https://betainternal.rd.frs.state.(i.usAocal_reti remenUPoliceAndFi re.aspx?s=L1WIM SX4iAav9mj bTc-nVbn461sspwH OUBFo1 n8t6c. 4/4 10/28/2016 Florida Division of Retirement- FRS Online ' Welcome (/main.aspx) Global Navigation: My Account Plan Details Member Data Plan Financials and Insurance Supporting Documents Profile Settings (/personal/profile--settings. asp: s=EiCXRvgjRNe4Vgw78mF4o3SU Plan Name: City of Apopka Municipal Police Officers' Retirement Trust Fund Local Retirement File Submit Member Data (/local_retirement/file submit. s=EiCXRvg jRNe4Vgw78mF4o3SU ............. ___. ___...._.-...._. ___.. _.__....._ . Reports Summary (/local_retirement/reports_sun Pension Data - Police Members s=EiCXRvg jRNe4Vgw78mF4o3SU ActuarialValuations ...... ..... ... ....... .......... ......................................... _......... _..... _... _....... _......... ...... -._..... .-..... -............ ...... ..... ...................... ..... _----...__.................................. .................................... .............. (/local retirement/ActuarialVa s=EiCXRvgjRNe4Vgw78mF4o3SU Upload your pension data line items file by clicking the upload file button below and then clicking the validate file button. Validating .... and Fire ........... Police files can take several minutes, do not close or refresh your browser. (/local_ retirement /PoIiceAnd s=EiCXRvgjRNe4Vgw78mF4o3' Download a copy of the pension data file upload template here. FRS Home (http://frs.myflorida.com/) Choose File No file chosen F.A.Q. (/faq/view_faq_pdf.aspx? Validate File s =EiCX Rvg j R N e4Vq w78m F4o3S U of Forms Social First Last Date Of Retire or Benefit Date of Name of Pension Monthly Total Notes (http://dms.myflorida.com/hum8 Security Name Name Birth Disability Type Disbursements Beneficiary Option Pension Distributions Contact Us Number Elected Amount This Period (/contact/contact_info.aspx? s=EiCXRvgjRNe4Vgw78mF4o3SUuf 6789 Greg Grape 07/1977 Retirement LOD 9/30/2016 Bingley 1 4,000.00 48,000.00 Log Out (/logout.aspx) 6321 Carl Carrot 03/1973 Terminated NLOD 9/30/2012 Elizabeth 3A 2,000.00 24,000.00 Vested 4789 David Date 04/1974 Retirement LOD 9/30/2013 Kitty 2 2,500.00 30,000.00 4123 Edward Elderberry 05/1975 Disability LOD 9/30/2014 Lydia 36 3,000.00 36,000.00 4987 Frank Fig 06/1976 Terminated NLOD 9/30/2015 Georgianna 4 3,500.00 42,000.00 i Vested 6789 Albert Apple 01/1971 Retirement NLOD 9/30/2010 Mary 1 1,000.00 12,000.00 4321 Benny Berry 02/1972 Disability LOD 9/30/2011 Jane 2 1,500.00 18,000.00 Data Summary Total Number of Members on this report: 7 Disayll\'EgteW%Ve hUps:l/betainterriN.rol.frs.state.O.usAocal_reU rement/Poli ceAndFi re.aspx?s=L1 VctM SX4iAav9mjbTc-nVbn4blsspwH OU BFo1 n8t6c. 1/3 1 D12812016 Florida Division of Retirement - FRS Online hl# For members listed as disabled please enter the counts below of members with the given disability type. Heart Disease I Hypertension Cancer 1mmumme Florida Division of Retirement ' FRS Online \ 210,000.00 .......... Notes Use the foKowingtext area tnadd any notes about the above fields. � I Save and Continue > ` �.frs�tate.V.usAce»mnFneusp^?m=uvotMoXwmmomV/m'nvun*nmopwHouoFmn8mc / ' ` 313 Kenthia White From: Bonni Jensen <bonni@robertdklausner.com> Sent: Thursday, December 08, 2016 5:50 PM To: 6310spencer@comcast.net; Marc Glass; Greg Mull; 'bradsticker@yahoo.com' Cc: bsjteam; Denise McNeill; Audrey Ross; Pete.Strong@grsconsulting.com Subject: Palm Beach Gardens Police Pension Fund - Default Provisions All, As a follow up to our recent meeting, I had a phone conference today with Allan Owens about the default provisions of the Chapter 2015-39 and the impact on the plan of the Board to use the excess 185 funds to increase the monthly supplement. Allan listened to the concerns but was ultimately unable to do anything. At this point, the discussion of mutual consent for the future use of the 185 money is in the hands of the PBA. They will need to bring this matter up in collective bargaining either intra-contract or at the end of the current collective bargaining agreement. For the next meeting, I will prepare an amendment to the Plan to create the Share accounts effective as of the date that the new collective bargaining agreement was entered into as well as provide for how the state money is to be used going forward. This will need to be accounted for in the actuarial valuation. Trustees — please do not reply all. You can respond to my office, Pension Resource and Pete Strong but not to each other. To expedite the handling of your email, please be sure to copy bs Bonni S. Jensen Klausner, Kaufman, Jensen & Levinson 7080 N.W. 4th Street Plantation, Florida 33317 Telephone: 954-916-1202 Facsimile: 954-916-1232 bonni(@robertdklausner.com X r `d,t . , I i" I F Vd. 1� am@robertdklausner.com on your emails. CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 12, "UM To RhumbLine Pooled Fund Investors: December 7, 2016 Re: Notice Regarding Daily Valuations We are pleased to announce a significant enhancement to our family of Pooled Index Funds. In response to several client and consultant requests and as a result of the steady growth of our Pooled products, we have arranged with the custodian, State Street Bank and Trust Company, to have all RhumbLine Funds valued on a daily basis. This will allow you added flexibility to purchase and sell units of the Funds throughout the month as opposed to bi-monthly or monthly. We are on target to make this change effective January 3, 2017 and will notify you if there is any change to that date. The client notification policy will be set so that you can provide written instructions for redemptions and contributions at least 24 hours prior to the actual date you would like us to trade. For new contributions, units purchased will be valued at the closing NAV on the day the actual funds are received by the custodian. For redemptions, funds will be available to transfer out on T+3. We believe that the benefit to our clients of this service substantially outweighs the minimal additional expense to the Funds (less than a 1/3 of a basis point on average). We will continue to welcome your feedback and consider reasonable and economical ways to enhance the Fund's operations. For more than 25 years, RhumbLine has been committed to managing index funds and helping its clients to achieve their investment objectives in a cost-effective way. We take pride in working with each of you in delivering dxactty what is expected of our team. Thank you again for your trust and your business. Should you have any questions, please contact anyone member of the RhumbLine Team. Kind regards, y T. Owen Denise A. D'Entremont hi Executive Off r Director -Marketing & Client Services eral Partner General Partner RhwnbL ne Advisers 265 Franklin Street, 21st Floor, Boston, MA 02110-3326 • Tel: (617) 345-0434, Fax: (617) 345-0675 Sr SALEM TRUST C O M P A N Y December 5, 2016 On behalf of the Salem Trust Company Board of Directors, it is with mixed emotions that I announce the retirement of Brad Rinsem, Salem Trust Company's long time President and CEO, at the end of 2016. 1 am happy that Brad will be able to spend more time pursuing his fishing hobby and spending time with his family. However, at the same time it is difficult to see him step out of the role in which he presided since the year 2000, when Salem Trust was beginning to grow into Florida's most dependable custodial services provider. Brad has cultivated many key relationships with our clients and partners over all these years, and therefore he has agreed to serve Salem Trust as Vice Chairman of the Board and will continue to develop new relationships for us. Brad will also remain active in the Florida Public Pension Trustees Association. All of Brad's contact information will stay the same. Stepping into Brad's everyday role as President and CEO is Mark F. Rhein, who joined Salem Trust in 2012 as our Chief Operating Officer. Mark brings deep experience to all facets that have made Salem Trust the premier provider of custodial services. I know he will passionately build on the culture of exceptional service that has been integral to the success of Salem Trust. Please join Mark and myself in congratulating Brad on his exceptional 40-year financial services career. We know that he will always be appreciated, both at our company, and in the marketplace we serve. Sincerely, David E. Bedran Chairman of the Board of Directors DEERFIELD BEACH TAMPA 1715 N WESTSHORE BOULEVARD, SUITE 750 • TAMPA, FL 33607 • TEL (877) 382-5268 • FAX (813) 301-1295 www.salemtrust.com SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE -OWNED COMPANY.