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Agenda 05-06-15 BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING WEDNESDAY, May 6, 2015 (a, 9:OOAM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 AGENDA I. CALL TO ORDER — Luke Henderson, Chairman II. AGENDA APPROVAL - III. APPROVAL OF MINUTES — IV. FINANCIAL REPORTS: A) Salem Trust Company — Karen Russo, Sr VP & Regional Manager Mark Rhein, Sr Management 1) SSAE 16 Audit — Review and update B) Bogdahn Consulting — Dave West, Consultant 1) Investment Performance Review for Quarter March 31, 2015 C) Attorney Report — Adam Levinson 1) Fire Pension Board & Police Pension Board — RFP for Pension Administrator Joint venture - Set -up and review process - 2) Chapter 175 State Statutes — Statute 175.032, 8. (a) — Compliance discussion V. CORRESPONDENCE — 1) Kamp Consulting Solutions — "Your Liability Consultant" dated 3 -5 -2015 VI. OLD BUSINESS — 1) Fact Sheet to counter misinformation on Pension Funding — Dave West & Pete Strong — Update 2) 175 Ad Hoc Benefit for 2014 for review — Prepared by Matt Petty VII. NEW BUSINESS: A. Invoices for review and approval: 1. Schroder Fixed Income Mgt — Qtry fee 06 -30 -2015 - $ 2. DSM Capital Partners LLC — Qtry fee 06 -30 -2015 - $22,840.15 3. Bogdahn Group — Qtry fee 03 -31 -2015 - $8,375 4. Klausner, Kaufman, Jensen & Levinson — Service Feb & Mar 2015- $4,770 1 5. Anchor Capital Advisors — Quarterly fee — 03 -31 -2015 - $ 6. GRS - Service Feb 2015 - $12,229 & Mar 2015 - $550 7. Alerus — Qtry DROP Admin Fee - $500 8. Professional Indemnity Agency, Inc. — Paid $9,067 4 -6 -2015 Renewal Trustee Liability Coverage 4- 10- 15/4 -10 -16 9. Intercontinental - Management Quarterly fee 12 -31 -2014 - $8,747.12 withheld from dividend reinvestment plan. 10. ASB Real Estate Fund — Quarterly Fee 3 -31 -2015 withheld - $8,074.03 VIII. PENSION ADMINISTRATOR'S REPORT: 1. Benefits as of 05 -01 -2015. 2. Pension Hardware /Software Update — Desktop/Monitor and All- purpose Printer - Existing program transfers completed and working with no problems 3 -23 -2015. IX. PUBLIC COMMENTS: X. ADJOURNMENT: Next Meeting Date — WEDNESDAY, August 5th, 2015 @ 9:OOAM— Renaissance Commons Executive Suites If you cannot attend, please call Barbara @ 561/739 -7972. NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE FIREFIGHTERS' PENSION BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE /SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE /SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. THE BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. BOARD MEMBERS MAY NOT PARTICIPATE FURTHER EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY. 2 To: All members and beneficiaries of the City of Retirement Plan ( "Retirement Plan ") From: Board of Trustees Re: Explanatory memorandum regarding new disclosure ( "Section 112.664 Report") Date: Overview This memorandum is intended to provide background and additional disclosure to accompany the new reporting required by Senate Bill 534 (codified as Section 112.664, Fla.Stat.)(hereinafter "S.B. 534 "). Although S.B. 534 was adopted in May of 2013, the detailed regulations spelling out the specific reporting requirements and procedures were not finalized by the Department of Management Services in Tallahassee until April of 2015. The Board is pleased to provide this memorandum as a service to the active membership, retirees and beneficiaries and in an effort to answer anticipated questions in connection with the Board's new Section 112.664 Report. Legal Protections Article X, Section 14, of the Florida Constitution specifically protects pension benefits for public employees and mandates that Florida governmental pension benefits are required to be funded "on a sound actuarial basis." Indeed, in Section 5 of S.B. 534 the Legislature declared that it is an important state interest that government retirement systems in Florida be "managed, administered, and funded in a sound manner as required by s. 14, Article X of the State Constitution and part VII of chapter 112, Florida Statutes." According to state statute, the total contributions to a retirement system "shall be sufficient to meet the normal cost of the retirement system or plan and to amortize the unfunded liability" See §112.64(2), Fla.Stat. All Florida cities are required to make the mandatory employer contributions to the pension plan "at least quarterly." See §112.64(1), Fla.Stat. The required contributions are actuarially determined by the independent actuary employed by the Board of Trustees. If a city fails to comply with its mandatory pension contributions, the Department of Management Services in Tallahassee is empowered to withhold state funds and tax revenue. See §112.63(4)(b), Fla.Stat. Thus, unlike widely reported examples of pension underfunding in other states, Florida law mandates "funding discipline" by the plan sponsor. Funding Discipline As a result of the legal protections for governmental pensions in Florida, by law the Retirement Plan will never become insolvent because it is required to be actuarially funded. The {00058823.DOCX;1} i possible investment return scenarios. For this very reason, new Governmental Accounting Standards Board ( "GASB ") requirements were recently implemented across the country. In fact, the Board's FY 2014 valuation contains a projection of benefit payments for the next 100 years. A copy of the Board's FY 2014 valuation containing the new GASB 67 100 year projection is available upon request, as are the additional sensitivity testing calculations performed by the Board's actuary. Amortization schedule Defined benefit ensions are paid monthly over a retiree's or beneficiary's lifetime. As a p p Y �'Y result, pension trustees invest with a long term investment horizon. By law, Florida governmental plans are permitted to amortize their liabilities over thirty years. While the "funded ratio" of many Florida governmental plans is less than 100 %, it is anticipated if all assumptions are borne out that the Retirement Plan will be approximately 100% funded at the end of the 30 year amortization period. Many professionals consider the Board's amortization schedule to be similar to a 30 year mortgage. The remaining balance on one's mortgage is usually less important than the ability to make the full monthly payments. Portfolio diversification As long term investors the Board employs a long term investment strategy which is based on a written investment policy. The Board retains a qualified investment consultant who monitors the Board's portfolio, as a fiduciary, consistent with the Board's investment policy. The Board's investments are diversified into several assets classes managed by different investment advisors in order to minimize volatility in the portfolio. The past five years of investment returns (along with the allocations of cash, equity, bond and alternative investments) are set forth in the new Section 112.664 Report. A copy of the Board's quarterly investment reports are available upon request. {00058823.DOCX;1} Barbara Ladue From: Karen Russo <Karen.Russo @salemtrust.com> Sent: Thursday, April 16, 2015 2:57 PM To: Barbara Ladue Cc: Luke Henderson; Mark Rhein Subject: Re: Boynton Fire Pension Board Meeting - May 2015 Attachments: USFAS - SSAE 16 Report - FINAL_l.pdf; STC Cover Letter 2013 SEI SSAE 16 dtd 2.17.15.pdf Barbara, This is to confirm that Mark Rhein and I will attend the board meeting on May 6th at 9:OOam. Also, attached is a copy of the SSAE 16 for the period of 6/1/13- 6/30/14 and the cover letter from Brad Rinsem per your request. We look forward to seeing you at the upcoming board meeting. Thanks and have a great day....Karen Karen M. Russo, RPA Senior Vice President & Regional Manager SALEM TRUST COMPANY 455 Fairway Drive, Suite 103 Deerfield Beach, FL 33441 (954) 426 -5770 Direct 1- 877 - 382 -5268 Toll Free (954) 725 -4493 Fax Karen.Russo@SalemTrust.com Please visit us at www.SalemTrust.com »> "Barbara Ladue" <ladueb@bbpdpension.com> 4/7/2015 1:50 PM »> Karen: The Fire Pension Board invites you and senior management to participate in our May Quarterly Board Meeting. This meeting is scheduled for Wednesday, May 6, 2015 @ 9 AM at Renaissance Commons Executive Suites, 1500 Gateway Blvd, Suite 220, Boynton Beach 33426. The Trustees of the Board would like a review, discussion and status update on the SSAE 16 report regarding Salem's internal controls. The Board is also concerned with the custody holding of the Plan's securities around some difficulty with Salem's parent Company. A copy of Salem's current audit review and report will be appreciated. Please let me know if this works with your schedule. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 SALEM TRUST C O M P A N Y February 17, 2015 Salem Trust Company's 2013 -2014 transition to a new operating system was a decision that we needed to make, although it led to unforeseen complications. But in the end we prevailed and overcame the challenges and the new operating system is now serving Salem Trust clients well. Our attention now focuses on the last remaining conversion issue, the distribution of the SSAE 16 report for the period immediately following the conversion of June 1, 2013, to June 30, 2014. During the transition, many statements were late and some trades may have been delayed, but ultimately never with unresolved consequences to the client. The difficulties we experienced resulted in a redesign of our procedures and controls. Salem Trust's operating effectiveness, as a result, has been greatly enhanced. I have stated in prior communications that the vast majority of Salem Trust's clients' have now gone through fiscal year -end audits for the period of time during which Salem Trust's conversion occurred. We are pleased to be able to report that fiduciary and safekeeping functions of Salem Trust were not compromised. The benefit payments were sent out on time; trades were always processed; no assets were lost or comingled with those of another; and dividend and interest income was always collected. The annual service organization audit we undergo, the SSAE16, focused on our internal processes and controls in place during the time of the 2013 -2014 conversion. Those processes and controls have been improved in response to our conversion and are more effective than those in existence during the period June 1, 2013 thru June 30, 2014. We would like to take a moment and share portions of the adverse opinion from our transition -era audit, and explain our point of view in response. I welcome the opportunity of answering any further questions that you may have. Regards, Bradley K. Rinsem, President & Chief Executive Officer DEERFIELD BEACH TAMPA 1715 N WESTSHORE BOULEVARD, SUITE 750 • TAMPA, FL 33607 • TEL (877) 382 -5268 • FAX (813) 301 -1295 www. ale ni rust.corn SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE -OWNED COMPANY SALEM TRUST C O M P A N Y SALEM TRUST'S RESPONSE TO THE SSAE 16 AUDIT FOR THE PERIOD OF JUNE 1, 2013 TO JUNE 30, 2014 SSAE 16 in General Salem Trust's response: It was discovered early in the conversion process that incomplete data interfaces delayed the posting of marketable security trade settlements. The consequence of the delayed postings was magnified by failed trades from investment managers who did not follow revised tradin instructions. These trading instructions were provided several times before the trading g p conversion. Direct intervention with investment managers occurred immediately during, and frequently after, conversion. The daily journals, which support the rapid pace for reconciling trades and accompanying income postings, were not appropriately archived and, as the report notes, created a document void for the validation of control processes. The consequence is that the audit tests could not always specifically identify the source document that was used. The absence of appropriately archived documentation to test controls lies at the heart of the auditor's opinion. No attempt was made to present an artificial operating design and exaggerated controls. As management notes, we have identified and acknowledge certain deficiencies in our system description, system design, and operational effectiveness of the system. Improvements have already been implemented. SSAE 16: The accompanying description of the USFAS system for affiliate fiduciary and investment support services does not include the controls that are in place to monitor and periodically reconcile trust cash. Salem Trust's response: We did not specifically include cash controls within the description because other parts of the description prompted tests of cash, such as the tracing of wire activity during the trade and settlement process and the testing of wires /checks during the disbursement process. Controls are in place to monitor and periodically reconcile trust cash. Salem Trust's reconciled cash positions for our clients were, and still are, in balance with our service providers. Reports related to actions for the reconciling of cash positions are being retained so that testing to the source documents can be performed for the next period. Management will also include a section in the USFAS system for affiliate fiduciary and investment support services description for cash controls that will be used in the next test. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 2 SALEM TRUST C O M P A N Y SSAE 16: The description also does not include the controls that are in place to perform and determine the accuracy of maintenance changes to client accounts to include changes to investment discretion, investment objective, client addresses, client phone numbers, and disbursement amount or frequency. Salem Trust's response: Without written direction, Salem Trust does not perform maintenance changes to client accounts affecting addresses, phone numbers, and disbursement amount or frequency. The testing for the next period will include a review of these source documents that are used in the normal course of facilitating the written requests from our clients. Salem Trust does not operate with investment discretion nor does it operate in a capacity that would affect the investment objective of our clients. SSAE 16: USFAS states that it has controls in place to compare trades on the AddVantage system against trade information from USB. USFAS also states that it has controls in place to reconcile trade settlements with USB on a daily basis in order to make a net settlement. USFAS further states that it has controls in place to reconcile the asset positions between USB and SunGard on a daily basis and between Fidelity and SunGard on a semi - monthly basis with a review being conducted by supervisory personnel on a monthly and semi - monthly basis, respectively. Salem Trust's response: Salem Trust client statements show correct and accurate trade data and asset positions, including cash. This has been documented by the reconciliation of investment managers, investment consultants and the auditors of our clients. The recent number of monthly failed trades has been modest and, even then, reconciled so that client and stakeholder statements are accurate. SSAE 16: (1) It was identified that the design of the controls are not sufficient to retain documentation to support the performance of the stated controls and (2) additionally, it was identified that evidence of review of the asset position reconciliations was not formally and consistently documented. Salem Trust's response: The core element of the SSAE 16 audit is the presence of retained documentation that supports the ability to test an operating task. The daily reports to reconcile trade setdements and asset positions are now being archived to provide documented support of these activities. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 3 SALEM TRUST C O M P A N Y SSAE 16: (I) USFAS states in its description that it has controls in place to reconcile income amounts posted with the amounts actually received from USB on a daily basis. USFAS also states in its description that it has controls in place to review and resolve unprocessed income maps and (2) it was identified that the design of the controls are not sufficient to retain documentation to support the performance of the stated controls. Salem Trust's response: Our clients' income has been factually documented by the reconciliations of investment managers, investment consultants and auditors. Income is not missing or misplaced. We remain in balance with our service providers and positions held by our clients. Documentation is now being retained to provide documented support that these actions are being performed. SSAE 16: USFAS states in its description that it has controls in place to set up and perform distributions based on client requests or the terms of the governing instrument. However, instances were identified where supporting documentation for distribution could not be provided, client direction for disbursements could not be provided, and client direction provided was not from an individual authorized to transact for the client account. Salem Trust's response: The appendix will show this finding was not related to any clients of Salem Trust. All distributions from Salem Trust client accounts are made after receiving written signed direction from authorized entities. Appendix A details the findings of the SSAE 16 audit The conditions which led to many of the testing deficiencies go back 18 months to the consequences of the conversion. The majority of the test results show "No exceptions were identified "; several were not associated to the processes and procedures in effect at Salem Trust; and the "Management Response" to the test results confirm that solutions have been identified and implemented to rectify the absence of sufficient documentation and other items. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 4 Barbara Ladue From: Petty, Matthew <PettyM @bbfLus> Sent: Tuesday, April 21, 2015 1:19 PM To: Adam Levinson Cc: Barbara LaDue; Bonni Jensen Subject: Re: Compliance with Chapter 112 & 175 Adam, Thanks for the response and that sounds good for the next meeting. The board need to address the issue at the next meeting as I believe we are not compliant. Matt Petty Sent from my iPhone On Apr 21, 2015, at 12:37 PM, "Adam Levinson" <adam @robertdklausner.com> wrote: Matt, Thanks for your email. I will be happy to address at the next meeting. Chapter 175 is very clear. The only "firefighter" who can opt out of a firefighter pension plan is the "Fire Chief." All other firefighters are required to be participants of the Chapter 175 plan. Copied below is the definition of firefighter set forth in Section 175.032(8)(a): (8)(a) "Firefighter" means a person employed solely by a constituted fire department of any municipality or special fire control district who is certified as a firefighter as a condition of employment in accordance with s. 633.408 and whose duty it is to extinguish fires, to protect life, or to protect property. The term includes all certified, supervisory, and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full -time firefighters, part -time firefighters, or auxiliary firefighters but does not include part -time firefighters or a uxilia ry firefighters. hters. However, for purposes of this chapter only, the term also includes public safety officers who are responsible for performing both police and fire services, who are certified as police officers or firefighters, and who are certified by their employers to the Chief Financial Officer as participating in this chapter before October 1, 1979. Effective October 1, 1979, public safety officers who have not been certified as participating in this chapter are considered police officers for retirement purposes and are eligible to participate in chapter 185. Any plan may provide that the fire chief has an option to participate, or not, in that plan. You will note that the last sentence only allows the "fire chief" to opt out. Chapter 185 contains a similar provision applicable to police pension plans. Best regards, Adam Levinson Klausner, Kaufman, Jensen & Levinson 7080 N.W. 4th Street Plantation, FL 33317 ph. (954) 916 -1202 fax. (954) 916 -1232 1 Website: www.robertdklausner.com <image003.png> Disclaimer: This e -mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e-mail and delete the original message. Nothing in this e-mail message shall, in and of itself, create an attorney - client relationship with the sender. 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. Matthew Petty, Firefighter Boynton Beach Fire Rescue City of Boynton Beach 2080 High Ridge Rd. I Boynton Beach, Florida 33426 o: 561 - 742 -6329 1 f: 561 - 742 -6674 PettyM®bbfl.us 1 www.boynton- beach.org 1 www.bbfrd.orq America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to me via email may be subject to disclosure.Under Florida records law, email addresses are public records. Therefore, your e-mail communication and your e-mail address may be subject to public disclosure. From: Petty, Matthew [mailto:PettyM @bbfl.us] Sent: Monday, April 20, 2015 3:47 PM To: Adam Levinson; Barbara LaDue Subject: Compliance with Chapter 112 & 175 Adam, This email is in regards to clarifying the compliance of the state statutes for chapter 175 plans. In revieweing the statutes 175.032, 8.(a) and various FPPTA conferences, I would like some clarification on the issue of who can 'opt' out on the pension plan and the details related. Also any local ordiance that would support (or not) such an option. Finally based on that information, the board will need to ensure that we are compliant presently and remain in compliance in the future. Please feel free to contact me if you have any questions. Thanks, Matt Petty Boynton Fire Trustee 2 Barbara Ladue From: Jock McQuilkin [ jmcquilkin @kampconsultingsolutions.com] Sent: Thursday, March 05, 2015 1:31 PM To: ladueb @bbpdpension.com Cc: R Kamp Subject: RE: Kamp Consulting Solutions Attachments: KCS - Your Liability Consultant.pdf Good afternoon Barbara; Thank you for being such a good listener this morning and for your willingness to share our information with your Boynton Beach Board members. As mentioned, KCS is pioneering an effort to get DB plans more focused on the liability side of the pension equation. We have for years recognized that plans and their consultants have singularly focused on achieving the Return on Assets (ROA) as their primary objective. Unfortunately, we are aware of too many situations in which the ROA has been achieved, but the plan's - Funded status has declined and contribution costs have escalated. 2014 was another disappointing year for DB plans, but most sponsors haven't realized that because liabilities are mostly absent, if not entirely, from quarterly reviews. Why was 2014 so bad? Despite assets growing at or near the ROA, liabilities grew substantially more with the precipitous decline in US rates (estimates suggest that liabilities grew by more than 20 %). This is a similar result to that which we observed in 2011, and during the entire 1999 through 2014 period. We have attached our "Liabilities Aware" slide presentation which looks at the challenges and our firm's solutions to this pension crisis. Sincerely, Jock Jock McQuilkin, CFA Senior Consultant Kamp Consulting Solutions, LLC T: 973.509.4616 C: 404.662.9113 F: 201.670.4454 E: - jmcquilkin (thkampconsultingsolutions.com 1 Kamp Consulting Solutions, LLC As the Liability Aware Consultant The Ultimate De- Risking Strategy Improving the Funded Ratio — Stabilizing Contribution Costs The Issue: Defined Benefit (DB) plans are disappearing at a rapid clip. According to the Depai talent of Labor, the US retirement industry has seen the number of DB plans fall from roughly 146,000 in 1986 to fewer than 25,000 in 2014. We, at KCS, don't believe that defined contribution plans provide a similar benefit to those received through DB plans. If the decline in the use of DB plans continues, we believe that there are likely going to be significant economic, social and perhaps political consequences from their demise. Regrettably, since 1999, pension asset growth has significantly underperformed pension liability growth and the Return on Assets (ROA) causing significantly increased contribution costs, declining funded ratios and greater public scrutiny. Why Do Pension Plans Exist? Pension Plan Objective: The true objective of any pension plan is to fund their liabilities (benefit payments) at low and stable contribution costs, and with reduced risk through time. If the objective is to fund liabilities, then why do asset consultants continue to focus on the return on assets (ROA) target as the primary objective? Wrong Index Objectives: Asset allocation models, asset management and performance measurement are all focused on generic market index benchmarks (asset side of the equation), which have nothing to do with your plan's liabilities. Such index objectives misalign assets /liabilities and risk/reward behaviors. Indeed, if you outperform the ROA but lose to liabilities ... the Plan loses! Wrong Definitions: The terms Alpha, Beta and Risk need to be redefined with a liability objective as the primary focus for the Pension Board. Alpha (traditional) = the excess return vs. the index objective return. (redefined) = excess growth above your plan's liability growth (requires Custom Liability Index). Beta (traditional) = portfolio that matches the index's objective risk/reward behavior (redefined) = portfolio that matches liability risk/reward behavior (requires CLI). Risk (traditional) = the volatility of returns (Sharpe Ratio). (redefined) = the uncertainty of fimding your plan's liabilities. New Sharpe Ratio requires a Custom Liability Index to accurately measure growth in liabilities. Kamp Consulting Solutions — Game Plan Becoming More Liability Aware KCS, in conjunction with Ryan ALM, has created a three -step process to enhance the evaluation of the plan's liabilities, allocate the plan's assets, and create a glide path (de- risking strategy) to achieving a fully funded status in a defined tirneframe. The process begins with the creation of the Custom Liability Index (CLI). We use the output from your plan's actuarial report to produce the index. In order to build the index, we need to receive two schedules — projected benefits and projected contributions. Once this data has been received, the CLI will be constructed. Unlike a traditional actuarial valuation, which is often received every two years, delayed 6 -9 months, the CLI provides a real -time view of your plan's liabilities. Custom Liability Index (CLI): As stated above, the first step in prudent pension management is to measure and monitor the liabilities frequently and accurately (real time). Until the plan's liabilities are priced as a Custom Liability Index (CL1) the asset side is in jeopardy of managing to the wrong objectives (i.e. ROA and generic market indexes). KCS uses a CLI provided by Ryan ALM and the CLI prices liabilities in conformity to ASC 715 (providing the discount rates), PPA (both spot rates + 3- segment rates) and market rates (Treasury STRIPS). The CLI also calculates a gross and net CLI (with contributions). Only the CLI best represents the risk/reward behavior of your fund's pension liability schedule. No two pensions' liability schedules are alike due to different labor forces, salaries, mortality, and plan features. How could a static ROA or generic market indexes ever properly represent the risk/reward behavior of such a diverse array of pension liabilities? Once the CLI is installed the pension plan will now know the Funded Ratio monthly (or more frequently, if desired), which should dictate the appropriate Asset Allocation. Asset Management should focus on outgrowing liability growth (CLI). Performance Measurement should monitor assets vs. liability based on the CLI. It should all link to the CLI as an asset/liability system. Asset Allocation: The second step in becoming more liability aware is the allocation of the plan's assets. Asset Allocation should be based on the Funded Ratio. A surplus position should have a radically different asset allocation than a deficit position. The KCS asset allocation model calculates the Funded Ratio, the annual liability Alpha hurdle rate to reach full funding, and the appropriate allocation % to the Alpha/Beta assets. Liability Alpha Assets: Alpha assets are the plan's perforrnance assets, which are managed vs. the CLI to exceed liability growth (earn Alpha) and enhance the Funded Ratio. The goal is to outgrow liabilities (relative returns) by enough to erase the deficit over a time horizon equal to the average life (duration) of liabilities and reduce contribution costs along the way. As the Alpha assets achieve the annual Alpha, such excess returns are ported over to the Beta portfolio to secure the victory. Liability Beta Assets: The core (Beta) portfolio for a pension should be in high quality bonds that match/fund liabilities (benefits) chronologically thereby buying time for the Alpha assets to outgrow liabilities and erase the deficit. The proper Beta portfolio for any liability objective should be a Liability Index Fund. This requires a Custom Liability Index in order to be executed. Performance Reporting: The final step in our three -step process is the on -going evaluation of the program. The KCS Performance Attribution Report (PAR) measures the risk/reward of the Alpha and Beta assets vs. the CLI through a series of measurements to make sure that Alpha is being earned and the Funded Ratio is on track to full funding over the desired horizon (CLI duration). Final Thoughts Can you imagine playing a football game and not knowing which offense to run or defense to play because you don't know the score? This is precisely what is happening to pension plan staffs / boards. We are asking our sponsors to manage their plans without knowledge of the score. For instance, your team has 30 points (assets) in the fourth quarter. Do you become more or less aggressive? Don't know? We are not surprised. Of course you don't know because you don't know how many points the opposition has (liabilities)! You, like a good football team, should adjust your playbook based on how many points the opposition has. We would suggest that you get more defensive if you are leading in the fourth quarter, but more aggressive if you are losing the contest. This is precisely what needs to happen with the management of pension plans. Our role as the Liability -Aware Consultant is to determine whether or not you are winning the game versus your plan's liabilities, and adjust your approach based on the findings. This approach is a de- risking strategy that should provide comfort to all of the plan's interested parties including the employees, sponsor, and the taxpayers. This approach will create a glide path to a successful outcome. Furthermore, given the unsettling environment for US interest rates, and the impact that has on traditional fixed income portfolios, we suggest that this de- risking strategy will use your current fixed income exposure more prudently, while significantly reducing the interest rate sensitivity of your portfolio. Wouldn't it be nice not to have to worry about where interest rates will trend? Our role enhances the contributions currently being received from your actuary, asset consultant and asset management team. KCS, LLC is a full- retainer asset / liability consulting firm. However, as a consultant focused exclusively on the liabilities, we work in conjunction with the Plan's general consultant and the actuary to insure that the liabilities are being given the appropriate focus. We will provide the Custom Liability Index, the Asset Allocation framework for improving the funded ratio, and performance measurement services as it relates to the liabilities, while working with the general consultant to assist in implementing any necessary changes. We can provide management of the beta portfolio, if desired. We look forward to assisting you in securing the pensions that have been promised to your plan participants. 175 Ad Hoc Benefit Drop Date Separate Date FYE Eligible 2014 175 Reg 1,016,561.00 \ \ \ \\ 175 Supp - City Credit 704,322.00 \ \ Other Cost (Cola, ARR) - \ 175 Ad Hoc Amount 312,239.00 \ \ / { ) Max Paid Out 11/2) 15'6,119,50 �\ Actuarial Value 8.8%N Adjusted Scale (per ,_year) 500.00 Years $ 321.23 1 Leamon 9/18/2005 10/1/2010 10/1/2010 10,000.00 20 $ 6,424.67 2 Reitz 9/18/2005 10/1/2010 10/1/2010 10,000.00 20 $ 6,424.67 3 Simpson 12/1/2006 4/28/2011 10/1/2010 10,000.00 20 $ 6,424.67 4 Thyng 3/1/2009 4/1/2011 10/1/2010 1 20 $ 6,424.67 5 Kinbacher 4/1/2009 deceased 10/1/2010 - \ \ \\$ 6 Bingham 10/1/2009 4/15/2011 10/1/2010 6,000.00 12 $ 3,854.8C 7 Rudy 6/30/2010 1/30/2015 10/1/2011 10,000.00 20 $ 6,424.67 8 Witt 8/30/2010 10/1/2011 10,000.00 20 $ 6,424.67 9 Fitzpatrick 9/30/2010 10/1/2011 10,000.00 20 $ 6,424.67 10 Keister n/a 10/1/2010 10/1/2011 10,000.00 20 $ 6,424.67 11 Beth Rehr 1/31/2011 4/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 12 Newman 1/31/2011 7/27/2011 10/1/2012 : 10,000:00 ; 20 $ 6,424.67 13 Temperilli 1/31/2011 10/1/2012 10,000.00 20 $ 6,424.67 14 Garcia n/a 4/2/2011 10/1/2012 9,000.0 18 $ 5,782.2C 15 Henderson 5/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 16 Baler 5/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 17 Abel 6/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 18 C. Reyes 6/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 19 Hermann 6/1/2011 10/1/2012 10,000.00 20 $ 6,424.67 20 Murphy 9/30/2012 10 /1/2013 10,000:00 20 $ 6,424.67 21 R Altman n/a 1/1/2013 10/1/2014 8,000.00 16 $ 5,139.74 22 JC Julia 9/30/2013 10 /1/.2014 10,000.00 20 $ 6,424.67 23 Kinser 9/30/2013 10/1/2014 10,000.00 20 $ 6,424.67 24 Kruse 9/30/2013 10/1/2014 10,000.00 20 $ 6,424.67 25 R Rehr 9/30/2013 10/1/2014 10,000.00 20 $ 6,424.67 26 Wandell C, 9/30/2013 10/1/ 10,000.00 20 $ 6,424.67 27 J. MacAlpine n/a 10/5/2014 10/1/2025 28 29 30 31 32 34 Scale Basis 2/ Actuarial Value Per Year $$ Neg -1.5% 50 1.6 -2.2 100 2.3 -3.0 150 3.1 -3. 200 3.8 -4.5 250 4.6 -5.2 300 5.3 -6.0 350 6.1 -6.7 400 6.8 -7.4 450 7.5 & Above 500 Qualified # Years of Years of Name Retire/ DRS Eligible Dat: Eligibilty Service 2009 : asis Actuarial Value 0.9% 1 Newell 1/30/2006 10/1/2005 4 mo 20 b1, :VI�A 2 Kirchen 9/30/2006 10/1/2005 2 _ 20 r� . k� mk t, . 1 , ;1 & 3 Morman 2/28/2007 10/1/2005 2.5 20 � # �� q ,r : ' 4 Smollon 6/30/2007 10/1/2005 2.9 _ _20 ��,� �� '�F. 5 J Hagg 9/30/2007 10/1/2005 3 _20 d'§ k �. 3 0 J Y � 6 Flushing 9/30/2007 10/1/2005 3 20 �' 7 Wandell 11/1/2007 10/1/2005 3.2 10 µ,t�S �3 '�a11r.,�a � �"a+Y�1 8 Ness 9/30/2008 10/1/2005 4 20 4, Y ,,,..,, 9 Milkins 2/1/2009 10/1/2005 4.4 20 $ 340.00 10 Anderson 5/1/2009 10/1/2005 4.7 20 $ 595.00 11 Esteves 6/1/2009 10/1/2005 4.8 20 $ 680.00 12 Quinn 9/30/2009 10/1/2005 5 20 $ 1,000.00 13 D Hagg 2/1/2009 10/1/2005 4.4 15 $ 250.00 Total I $ 2,865.00 - -_- Paid Out 2014 • 5 CHAPTER REVENUE Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter revenue must be used to provide extra benefits. As of the valuation date, all minimum Chapter requirements have been met. Actuarial Confirmation of the Use of State Chapter Money 1. Fire Regular $ 704,322 Fire Supplemental 0 Total Base Amount Previous Plan Year 704,322 2. Fire Regular ? `ey'1 cs , . , = fi 'a'" * 14 tf f 1,016,561 Fire Supplemental 0 Total Amount Received for Previous Plan Year 1,016,561 3. Adjustment to Base Amount due to reevaluation of COLA cost 0 4. Excess Funds for Previous Plan Year 312,239 5. Accumulated Excess at Beginning of Previous Year 2,517,628 6. Prior Excess Used in Previous Plan Year 105,951 7. Accumulated Excess as of Valuation Date (Available for Benefit Improvements) 2,723,916 8. Fire Regular 704,322 Fire Supplemental 0 Base Amount This Plan Year - Fire 704,322 , - . -: ._ . , ,- ..zz - PANV ,�^.6 xr a 31 INVESTMENT RATE OF RETURN I Investment Rate of Return Year Ended Market Value I Actuarial Value 12/31/1982 NA % 11.9 % 12/31/1983 15.2 13.9 12/31/1984 11.7 11.1 12/31/1985 23.1 18.7 12/31/1986 11.8 13.4 12/31/1987 5.3 10.3 12/31/1988 10.9 9.8 12/31/1989 15.9 14.8 9/30/1990 (9 mos.) (1.6) 1.4 9/30/1991 19.6 13.1 9/30/1992 12.7 11.2 9/30/1993 13.1 9.7 9/30/1994 0.2 3.1 9/30/1995 18.8 9.3 9/30/1996 13.1 9.8 9/30/1997 24.5 12.6 9/30/1998 11.4 12.4 9/30/1999 11.8 14.1 9/30/2000 9.4 13.3 9/30/2001 (7.7) 8.0 9/30/2002 (5.6) 2.3 9/30/2003 15.3 3.5 9/30/2004 6.4 2.2 9/30/2005 7.9 2.5 9/30/2006 5.2 5.3 9/30/2007 12.3 9.3 9/30/2008 (17.1) 3.0 9/30/2009 (0.2) 0.9 9/30/2010 8.5 2.5 9/30/2011 (0.9) 0.9 9/30/2012 17.1 2.7 9/30/2013 13.6 8.1 9/30/2014 10.2 8.8 Average Returns: Last Five Years 9.5 % 4.6 % Last Ten Years 5.2 % 4.4 % All Years 8.7 % 8.2 % 1 I fit INVOICE DSM CAPITAL PARTNERS LLC 116 Radio Circle Drive, Suite 200, Mt. Kisco, NY 10549 Tel: (914) 242 - 1900 17- Apr -15 Invoice No: 14814 Luke Henderson City of Boynton Beach Municipal Firefighters Pension Trust Fund 1500 Gateway Boulevard, Suite 220 Boynton Beach, FL 33426 Billing Period: FROM 04/01/2015 TO 06/30/2015 Account Name City of Boynton Beach Municipal Firefighters Pension Trust Fund / Portfolio Value $10,514,743 ,/ �( Amount Due $22,840.15 FEE CALCULATION % of Annual Rate Rate Assets Under Management Fee 1.0000 % 0.25 On the first: 5,000,000 12,500.00 0.7500 % 0.25 On the next: 5,514,743 10,340.15 Total $22,840.15 To wire payment: JP Morgan Chase ABA #: 021000021 A/C Name: DSM Capital Partners LLC A/C #: 3241067005 THE $ •G Invoice t Date Invoice # 3/16/2015 11743 4901 Vineland Rd Suite 600 Orlando, FL 32811 Bill To Boynton Beach Firefighters' Pension Plan Attn Barbara La Due Description Amount Performance Evaluation for 12/31/14 Reports and Consulting 8,375.00 Services through 3/31/15 1/1/2015 - 3/31/2015 Balance Due $8,375.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS March 31, 2015 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16658 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 03/31/15 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 03/04/15 DRAFTED EMAIL TO LADUE RE INSURANCE 0.50 150.00 QUOTES, REVIEW FILE 03/05/15 REVIEW EMAILS AND DIRECTION LETTER; REVIEW 0.20 60.00 FILE AND EMAILS 03/06/15 REVIEWED EMAIL RE REBALANCING 0.10 30.00 03/20/15 REVIEW FILE RE FUNDING POLICIES; REVIEW 0.50 150.00 GASB ISSUES Total for Services 1.30 $390.00 CURRENT BILL TOTAL AMOUNT DUE $ 390.00 Past Due Balance 4,380.00 AMOUNT DUE $4.770.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS February 28, 2015 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16572 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 02/28/15 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 02/04/15 REVIEW EMAILS, CORRESPONDENCE AND 1.00 300.00 MINUTES 02/04/15 REVIEW REPORTS AND FILE 1.00 300.00 02/13/15 RESEARCH RE 112.63 AND 60T- 1.0035; 0.50 150.00 CONSULTED WITH DIVISION OF RETIREMENT 02/17/15 REVIEW EMAILS RE SALEM 0.50 150.00 02/18/15 RECEIPT AND REVIEW AUDITOR PROFESSIONAL 0.50 150.00 SERVICES AGREEMENT; REVIEW EMAIL; DRAFTED EMAIL 02/18/15 DRAFTED EMAIL TO LADUE RE SALEM 0.10 30.00 02/19/15 REVIEW EMAILS AND AGENDA; REVIEW FILE 0.50 150.00 02/20/15 REVIEW EMAILS FROM AUDITOR 1.00 300.00 02/23/15 REVIEW EMAILS 0.50 150.00 02/24/15 REVIEW AGENDA PACKAGE; PREPARATION FOR 1.00 300.00 BOARD MEETING 02/25/15 ATTENDED BOARD MEETING 7.00 2,100.00 02/26/15 CALL TO CHAIR RE PENDING ISSUES; REVIEW 1.00 300.00 PREMIUM TAX ISSUES; DRAFTED EMAIL Total for Services 14.60 $4,380.00 k- Continued .. • Client: BOYNTON BEACH FIREFIGHTERS PENSION FUND February 28, 2015 Matter: 900334 - BOYNTON BEACH FIREFIGHTERS - GENERAL FILE Page 2 CURRENT BILL TOTAL AMOUNT DUE $ 4,380.00 Ok_ Past Due Balance �-- 7,860.00 AMOUNT DUE 112 0 r GR c Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 Date Invoice 3/13/2015 412494 Bill To: Please Remit To: Attention: Ms. Barbara La Due Dept. # 78009 City of Boynton Beach Gabriel, Roeder, Smith & Company Municipal Firefighters Retirement Fund PO Box 78000 Renaissance Executive Suites Detroit, Michigan 48278 -0009 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax ID 38- 1691268 Client 100560 Amount For professional actuarial services rendered for the Boynton Beach Municipal Firefighters Retirement Fund through 2/28/2015 Final charges for preparation of the 10/1/2014 Actuarial Valuation Report; total fee of 8,547.00 $10,895* less previous charges of $2,348 GASB 67 true -up letter (dated 1/9/2015), with final GASB 67 disclosure information as of 450.00 9/30/2014 Preparation of GASB Statement No. 67 projected 9/30/2015 disclosure exhibits in 2,338.00 conjunction with the 10/1/2014 Actuarial Valuation Report (based on hourly charges, limited to $2,500 per agreement; actual hourly charges were $2,338) Additional consulting charges related to correspondence to Pension Board from City 894.00 Commissioner Fitzpatrick (review of historical correspondence, phone calls, emails, and additional meeting time) Amount Due $12,229 * Last year's total fee of $10,713 increased by 1.7% due to increase in CPI from September 2013 to September 2014 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 GRS Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 Date Invoice 4/7/2015 413286 Bill To: Please Remit To: Attention: Ms. Barbara La Due Dept. # 78009 City of Boynton Beach Gabriel, Roeder, Smith & Company Municipal Firefighters Retirement Fund PO Box 78000 Renaissance Executive Suites Detroit, Michigan 48278 -0009 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax ID 38- 1691268 Client 100560 Amount For professional actuarial services rendered for the Boynton Beach Municipal Firefighters Retirement Fund through 3/31/2015 Preparation of page 6a for inclusion in the 2014 Annual Report to the State 550.00 Amount Due $550 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 TRUSTEE and FIDUCIARY INSURANCE SERVICES, INC. 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 March 30, 2015 To: Barbara LaDue, Pension Administrator Boynton Beach Firefighters Retirement Trust Fund Re: Trustee Liability Renewal Barbara, we solicited bids from three companies who specialize in this type of coverage that are rated A +- Superior by A.M. Best. The results are as follows: U. S. SPECIALTY (carrier providing coverage for the Plan since April 10, 2003) Limit of Liability $1,000,000, Retention (Deductible) $15,000, including Waiver of ev e Recourse - Total Premium $9,067.00 i J, Claims that are currently unknown and unreported that date back to 4/10/2003 are 7 eligible for coverage. This is known as the Pending and Prior Litigation date. HUDSON INSURANCE COMPANY Limit of Liability $1,000,000, Retention (Deductible) $25,000, including Waiver of Recourse Total Premium $7,440.00 Hudson will meet the Pending and Prior Litigation date of 4/10/2003. RLI CORP. RLI has declined to quote as the Plan's Funded Ratio does not meet its minimum level. Thank you very much for allowing us to obtain these proposals for the Trustees of the Boynton Beach Firefighters Retirement Trust Fund. Carolyn I. Furlong, CPCU, CLU, CEBS CIFurlong @aol.com t HCC 'S. Specialty Insurance Company Houston, Texas DECLARATION'S CORPORATE: FIDUCIARY LIABILITY INSURANCE (THIS IS A CLAIMS MADE AND REPORTED POLICY) Beaker: 14-70 51 Polley Numbam11715,-5.1714 Trustee and Ficipciary Insurance Renewal of11714-51.4413 Services, Inc Item 1. EMPLOYEEEIENEFIT'pLANSt: Any Plan of theSPONSOR ORGANIZATION Listed/In item 2 as DefinedinAectIon 3(1) of ERMA; !artylNSURED PLAN and any Plantisted by Endorsement to this. Item 2 SPONSOR CIROMIZATIOW City of Boynto• Rea:dh Rena Address of.SPQNSOR ORgANIZATIONt 1,50.1) Gatotay Sotativard Sate 2:2 a Boynton B044 3142 Item .4 poucy PERIOD: Inception Date: April, 1.0., 2015 Expiration Date: April I 2 016 12:01 a.m. Standard Time at:tharrintibal Address ofthe SPONSOR ORGANIZATION Item 5 Limit of Liability: $ 1 00 ;Q Eack:CLAIM andlitrthaAggregate f�raH CLAIMS including DEFENSE COSTS. Itemli Deductible: 15 , 00 Each CLAIM including DEFENSE COSTS. Itern'T Premium: Recourse Premium G :10t...110 Total Premium :$ ! 9:0!67,00 Item 8 Form no/room endorsameaterbittathad at lasuance• .FLQ. , ETRIAr F140;c FLOOOM FLOC1O, Ft001I, FLO018, F1'41:1=0:44, :FL2'(:)06" ;F1,2p10-, EI2036", FLMA141101, FIN. by Authot04.1 RAiresciitit4Ve FL0001 (10/011 Panel of 1 PROFESSIONAL INDEMNITY AGENCY, INC. 37 RADIO CIRCLE DRIVE MOUNT KISCO, NY 10549 TO: CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS' TRUST FUND U. S. SPECIALTY INSURANCE COMPANY $1,000,000 LIMIT OF LIABILITY, $15,000 DEDUCTIBLE Renewal of Policy #U714 -51483 — 4/10/15- 4/10/16 PREMIUM $8,967.00 WAIVER OF RECOURSE 100.00 $9,067.00 iv- 6a Please make check payable to: PROFESSIONAL INDEMNITY AGENCY, INC. and mail to: TRUSTEE AND FIDUCIARY INSURANCE SERVICES, INC. 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 THANK YOU. iL CHECK NO. CHECK DATE VENDOR NO. CITY OF BOYN'TON BEACH . . 21655 04/06/15 PROF FIREFIGHTERS PENSION PA CHECK NO 021655 1500 GATEWAY BLVD, SUITE #220 WELLS FARGO BOYNTON BEACH, FL 33426 Delray Beach, Florida 33444 63- 643/670 CHECK AMOUNT NINE THOUSAND SIXTY -SEVEN AND 00/100 DOLLARS $9,067.00 PAY PROFESSIONAL INDEMNITY AGENCY, INC. TO THE ORDER OF a AUTHORIZED IGNATURE II'02L6S5 1:0670064321:209000207/.948e CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN CHECK NO. 021655 NDOR �vf 3.x� �>`+ -^'� �'�- �v�v`� '` -ate+ 4. - � CfiERJNO tNYO]C ENO ,: AIN�OTC r 1 C/O CE . O �iT L> i , R1 COlJNT -AKEN rN�T HECK 44-o ti 001598 20150406 04/06/15 9,067.00 9,067.00 .00 9,067.00 Check Total 9,067.00 EUCLID SPECIALTY INSURANCE GROUP 4323 WARREN STREET, N.W. WASHINGTON, DC 20015 TO: CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS' TRUST FUND RE: HUDSON INSURANCE COMPANY $1,000,000 LIMIT OF LIABILITY, $25,000 DEDUCTIBLE New Policy — 4/10/15- 4/10/16 PREMIUM $7,315.00 WAIVER OF RECOURSE 125.00 $7 „440.00 Please make check payable to: TRUSTEE AND FIDUCIARY INSURANCE SERVICES, INC. and mail to: 3810 Inverrary Boulevard, Suite 303 Lauderhill, FL 33319 THANK YOU. Barbara Ladue From: ClFurlong @aol.com Sent: Tuesday, March 31, 2015 12:29 PM To: ladueb @bbpdpension.com Subject: Firefighters Trustee Insurance Attachments: HUDSON INS. CO. - Boynton Beach Firefighters $25,000 Ded. (2015).doc; PROFESSIONAL INDEMNITY AGENCY Boynton Beach Fire 15,000 ded. (2015).doc; TAFIS Boynton Beach Firefighters Proposals 2015.doc I am attaching a summary of the proposals I obtained for the Firefighters Trustee insurance renewal. Please note that the Hudson Insurance Company offers only a $25,000 deductible, whereas the U.S. Specialty is lower at $15,000. If you would like to look at a $25,000 deductible from U.S. Specialty, I will obtain a quote for you. This would reduce their premium somewhat. There is something to be said for maintaining the continuity of the same company; however, if the Trustees want to make a change I will be sure that it goes smoothly. Thanks, Carolyn Carolyn I. Furlong, CPCU, CLU, CEBS Trustee and Fiduciary Insurance Services, Inc. 3810 Inverrary Boulevard, Suite 302 Lauderhill, FL 33319 (305) 823 -0950 1 INTERCONTINENTAL REAL ESTATE CORPORATION INTERCONTINENTAL 1 270 SOLDIERS FIELD ROAD BOSTON, MASSACHUSETTS 02135-1003 TELEPHONE 617 - 782 -2600 FACSIMILE 617-782-9442 www.intercontinental.net PAUL J. NASSER Chief Financial Officer and Chief Operating Officer 7' ) b it/ March 26, 2015 Ms. Barbara LaDue, Pension Administrator City of Boynton Beach Firefighters' Pension Fund Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 RE: U.S. Real Estate Investment Fund, LLC Dear Ms. LaDue: We are pleased to announce that U.S. Real Estate Investment Fund, LLC (US REIF) has made a distribution to you in the amount of $30,700.07, which constitutes your pro rata gross share of an overall distribution of $7,906,276.12. The Fund has withheld $8,747.12 for payment of asset management fees for the fourth quarter 2014, resulting in a net distribution to you of $21,952.95. As authorized by your executed Dividend Reinvestment Plan (DRIP) letter, Intercontinental has reinvested your net distribution of $21,952.95 into US REIF. Intercontinental will report the number of reinvested shares as part of the first quarter 2015 reporting. If you have any questions or wish to change your method of payment, please contact Bart Weinstein at 617- 779 -0440. Sincerely, Pa- Jt Paul J. Nasser 202 KR CHEVY CHASE TRUST Ok INVESTMENT ADVISORS 7501 Wisconsin Avenue, Suite 1500W Bethesda, Maryland 20814 ASSETS DISPOSED BOYNTON BEACH FIREFIGHTERS PF ACCOUNT: CH100363 PAGE: 6 FOR THE PERIOD 01/01/15 THROUGH 03/31/15 PAR VALUE ADJUSTED REALIZED DATE OR SHARES DESCRIPTION PROCEEDS COST GAIN /LOSS 01/15/15 7.2070 ASB ALLEGIANCE REAL ESTATE FUND 8,000.00 6,038.80- 1,961.20 01/15/15 74.0300 SEI DAILY INCOME GOV T FUND CL A #36 74.03 74.03- 0.00 TOTAL ASSETS DISPOSED 8,074.03 6,112.83- 1,961.20 p / i � V i t e i = O2= CIO = 000028d.000b<=1427 KR CHEVY CHASE TRUST Oka INVESTMENT ADVISORS - 7501 Wisconsin Avenue, Suite 1500W Bethesda, Maryland 20814 LIST OF ASSETS BOYNTON BEACH FIREFIGHTERS PF ACCOUNT: CH100363 PAGE: 2 AS OF 03/31/15 PAR VALUE FEDERAL MARKET MARKET ACCRUED OR SHARES ASSET DESCRIPTION TAX COST VALUE PRICE INCOME MONEY MARKET FUNDS 210.1100 SEI DAILY INCOME GOV'T FUND CL A #36 210.11 210.11 1.000 0 GOVT PORTFOLIO CL A COMMON AND COLLECTIVE FUNDS 2,320.3250 ASB ALLEGIANCE REAL ESTATE FUND 1,944,216.35 2,646,955.76 1,140.769 0 CHEVY CHASE TRUST COMPANY, TRUSTEE PRICED QUARTERLY AT EOM: MARCH, JUNE, SEPTEMBER, DECEMBER TOTAL ASSETS 1,944,426.46 2,647,165.87 0 - C 7181.02.00.0000284.0003.000 +425 CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 1 REPORTING PERIOD 10/01/2014 TO 05/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr &ETIREMENT 5297 ALLEN,EDWARD 08/1930 02/01/94 MRS. ALLEN 02/1927 3 -A 4,464.39 35,715.1: 6107 ALTMAN,RAYMOND 11/1962 01/01/13 DAWN ALTMAN 10/1953 3 -A 3,609.89 28,879.1: 0637 ANDERSON,ROBERT 12/1960 05/01/09 00 /0000 1 7,280.26 58,242.0. 9555 BELL,DANIEL 10/1955 01/01/98 RONNA R. BELL- DECEASED 06/1954 3 -A 3,216.33 25,730.6 7547 BINGHAM,WILLIAM 12/1953 10/01/09 AISHAH ABDUL AZIZ 04/1964 3 -D 4,518.95 36,151.6' 4242 BONOMINI,JAMES 02/1955 01/01/98 PATRICIA BONOMINI 12/1952 3 -A 2,913.58 23,308.6 0362 BORDEN,BOBBY 02/1950 06/01/04 FREDA BORDEN 10/1949 2 8,611.80 68,894.4' 1533 BROWN,ROBERT 03/1949 02/01/00 00 /0000 1 4,076.38 32,611.0 0316 CAMPBELL,STEVEN 04/1949 06/01/97 JOAN CAMPBELL 12/1949 3 -A 2,384.98 19,079.8 7839 CAUGHEY,GAYLE 08/1958 08/01/05 GARY CAUGHEY 10/1959 3 -A 1,587.13 12,697.0 2595 CAVANAUGH,WILLIAM 10/1943 01/01/98 ALISON CAVANAUGH 12/1963 1 3,458.01 27,664.0: 1622 CROCKETT,DAVID 04/1936 11/01/91 PEGGY CROCKETT 09/1934 3 -A 579.23 4,633.8 9654 CROFT,BRYAN 01/1964 02/01/07 BRENDA CROFT 08/1964 1 831.05 6,648.4' 8948 CROFT,ROBERT 01/1961 07/01/04 CHRISTINE CROFT 03/1962 2 4,508.53 36,068.2 3953 DEMARCO,JOSEPH 08/1950 12/01/97 DANA DEMARCO 10/1947 3 -A 3,205.02 25,640.1 9036 DOLPHIN,ANTHONY 03/1947 04/01/01 PATRICIA DOLPHIN 01/1947 3 -B 3,476.21 27,809.6: 2671 DUNKELMANN,WILLIAM 10/1941 07/01/95 LYNNE MCKIRDY 07/1951 2 3,103.59 24,828.7: 5135 DYPOLD,DEBRA 05/1952 06/01/02 00 /0000 2 2,796.14 .0' 2513 EBERLY,DEAN 04/1961 07/01/04 CHRISTINE EBERLY 01/1968 2 4,084.58 32,676.6 1267 EHMKE,BARRY 07/1955 04/01/01 00 /0000 2 3,368.39 26,947.1. 8000 ESTEVES,EDWIN 04/1953 06/01/04 DIANE S ESTEVES 08/1952 3 -A 3,773.22 30,185.7 3427 FITZPATRICK,MICHAEL 06/1953 10/01/10 LISA HANLEY 09/1950 3 -A 6,232.97 49,863.7 6726 FLUSHING,DENNIS 09/1952 10/01/02 MARY KATHLEEN 02/1957 3 -A 6,185.85 49,486.8' 5090 GALE,STEVEN 07/1950 05/01/04 PAMELA GALE 07/1951 3 -A 10,221.46 81,771.6: 2249 GARCIA,LUIS 05/1966 03/01/13 DAWN ROMEO GARCIA 10/1970 1 4,294.16 34,353.2: 7946 GULBRANDSEN,WILLIAM 03/1956 02/01/01 JILL C. GULBRANDSEN 08/1957 2 4,231.13 33,849.0 0453 HAGG,DIANE 11/1956 02/01/09 00 /0000 2 3,242.06 25,936.4: 8232 HAGG,WALTER 07/1953 10/01/02 DIANE SOUCY 11/1956 3 -A 5,863.16 46,905.2: 1678 HERIG,JAMES 05/1945 01/01/98 KATHLEEN HERIG 05/1950 3 -A 3,047.04 24,376.3: 9190 HERNANDEZ,DEREK 10/1962 12/01/06 CAROLYN ALLAN 06/1967 1 3,994.16 31,953.2: 8208 JUTE,RANDALL 04/1958 07/01/04 CAROL JUTE 07/1955 2 4,285.55 34,284.4' 8911 KAMIYA,HENRY 04/1944 01/01/98 00 /0000 2 5,266.84 42,134.7: 7037 KEEFE,MICHAEL 08/1949 01/01/98 CLARA ANN BOWLBY(MOM) 4 03/1928 3 -D 4,282.53 34,260.2 3307 KEISTER,RONALD 05/1953 10/01/10 KATHERINE KEISTER 01/1957 3 -A 9,682.07 77,456.5 . CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 2 REPORTING PERIOD 10/01/2014 TO 05/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 3063 KIGHT,LUDDY 01/1942 01/01/98 SANDRA KIGHT 03/1945 3 -D 4,925.10 39,400.8 7245 KINBACHER,JEFFREY 05/1950 04/01/09 LINDA KINBACHER 03/1949 3 -A 3,164.69 .0 5513 KIRCHEN,ALAN 01/1956 10 /01 /01 00 /0000 1 2,975.73 23,805.8 4840 KNIGHT,KEITH 08/1957 08/01/05 00 /0000 1 1,434.05 11,472.4. 4746 LAMBERT,PAUL 08/1956 04/01/01 00 /0000 2 4,034.11 32,272.8: 6246 LEAMON,EDWARD 08/1958 10/01/05 KAREN LEAMON 07/1959 2 4,975.05 39,800.4 5297 LIMAURO,RICHARD 04/1960 07/01/04 DRU LIMAURO 05/1966 2 6,064.49 48,515.9. 0505 LIU,DAVID 11/1963 07/01/04 PHILIP LIU(DAD) 4 -1 -201 04/1931 3 -D 7,373.85 58,990.8 3441 LOWERY,JOHN 01/1953 08/01/93 JERILYN C. LOWERY, WIFE 01/1958 3 -A 600.92 4,807.3 9342 MACALPINE,JAIME 04/1979 07/01/24 CHRIS MACALPINE 04/1968 3 -A 1,907.87 .0 1414 MACRAE,THOMAS 03/1954 04/01/01 DIXIE MACRAE 09/1954 3 -D 3,152.55 25,220.4 5106 MADIGAN,DOUGLAS 09/1953 03/01/97 LAURIE MADIGAN 02/1961 3 -B 3,028.08 24,224.6 3481 MARTIN MILKINS,CRYS 11/1963 02/01/09 LARRY MILKINS 01/1955 3 -D 4,750.84 38,006.7: 9949 MARTIN,JOHN 06/1948 07/01/96 SHARON MARTIN 03/1950 3 -A 3,118.47 24,947.7 2833 MCCONNELL,WILLIAM 08/1958 07/01/02 00 /0000 1 1,318.30 10,546.4 7801 MITCHELL,F. 10/1927 08/01/85 BLANCHE GEIST, SISTER 00 /0000 1 1,475.68 11,805.4 4289 MORMAN,TIMOTHY 07/1951 03/01/02 SUSAN MORMAN /DECEASED 1 04/1959 2 7,202.62 57,620.9 8524 NESS,JAMES 02/1949 10/01/03 BARBARA L NESS 10/1959 3 -B 5,650.56 45,204.4: 1780 NEWELL,DEAN 05/1949 10/01/02 PATRICIA ANNE NEWELL 11/1952 3 -A 3,823.51 30,588.0. 0868 NEWMAN,ALLEN 11/1962 02/01/11 LISA P. NEWMAN 03/1968 3 -C 5,075.49 40,603.9. 7918 OVERBY,KENNETH 12/1956 01/01/98 KATHERINE OVERBY 09/1956 3 -B 3,701.17 29,609.3 1627 OXENDINE,PHILIP 01/1953 07/01/00 MICHELE OXENDINE 02/1954 3 -B 3,844.77 30,758.1 9772 PATTERSON,PERRY 12/1950 02/01/96 MRS. PATTERSON 12/1953 1 3,013.69 24,109.5. 6787 PICKLESIMER,ALAN 11/1955 01/01/98 DEBRA PICKLESIMER 09/1954 3 -A 2,486.47 19,891.7 1006 PLAYNE,MATTHEW 09/1957 07/01/04 GERALYN PLAYNE 02/1959 3 -A 5,320.21 42,561.6: 8458 PODRAY,ANDREW 09/1952 04/01/01 ROZANNA PODRAY 03/1952 3 -D 4,052.13 32,417.0 5607 PORTER,CHARLENE 09/1928 08/01/93 00 /0000 4 -B 541.30 .0 8401 QUINN,KEVIN 04/1957 10/01/04 JEANNIE KASMER QUINN 06/1957 2 6,068.69 48,549.5: 4065 RAHRIG,GILBERT 04/1939 05/01/95 WIFE - BARBARA 00 /0000 2 3,088.93 24,711.4 8312 REHR,ELIZABETH 04/1968 02/01/11 BOB REHR 04/1966 1 4,313.36 34,506.8: 3899 REITZ,THOMAS 07/1959 10/01/05 00 /0000 2 4,758.38 38,067.0 6678 RHODEN JR.,JAMES 07/1955 01/01/98 00 /0000 1 4,234.24 33,873.9. 0134 ROTHROCK,EDWARD 03/1950 04/01/01 00 /0000 2 3,673.44 29,387.5: 4097 RUDY,RONALD 05/1966 07/01/10 KAREN RUDY 05/1967 3 -A 8,274.43 33,097.7. 9949 SEARS,ROBERT 10/1951 02/01/01 PATTI SEARS 01/1956 3 -B 3,118.12 24,944.9 CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 3 REPORTING PERIOD 10/01/2014 TO 05/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 6451 SEIDER,GREGG 04/1956 05/01/06 LAWREN SEIDER 12/1960 3 -A 923.39 7,387.1: 2403 SHEMWICK,THOMAS 04/1942 05/01/96 GAYLE SHEMWICK 07/1941 3 -A 3,401.90 27,215.2 5020 SIMPSON,GEOFFREY 05/1960 12/01/06 JEAN SIMPSON 10/1955 3 -B 6,357.70 50,861.6. 8086 SMOLLON,MICHAEL 08/1951 07/01/02 00 /0000 2 5,585.29 44,682.3. 9257 SNOW,MARK 12/1952 04/01/01 CATHERINE SNOW 12/1955 3 -A 3,436.19 27,489.5. 7188 STARKOSKI,SHAWN 04/1951 08/01/00 MARGARET STARKOSKI 04/1946 3 -B 4,073.29 32,586.3. 8763 THYNG,BRADLEY 05/1964 03/01/09 00 /0000 2 6,886.22 55,089.7 8386 TRACY,BRENTON 08/1968 09/01/19 KERSTIN TRACY 06/1966 3 -A 2,980.89 .0 8477 VALENTINE,TIMOTHY 10/1958 07/01/04 DANA VALENTINE 06/1965 3 -A 7,000.34 56,002.7: 1196 VICKI,RODNEY 01/1954 01/01/98 SHARON GOLDEN VICKI 02/1952 3 -D 3,145.81 25,166.4: 6344 WOZNICK,MARK 09/1951 07/01/04 00 /0000 2 4,697.97 37,583.7 Total Retirement 2,529,430.52 )ISABILITY 0849 WANDELL,ERIC 06/1965 11/01/07 LOD ROSEANNE WANDELL 09/1972 3 -A 3,413.60 27,308.8 Disability 27,308.80 IENEFICIARY 7853 DUFFY,CAROLYN 04/1942 4 -A 1,307.88 10,463.0 7944 KINBACHER,LINDA 03/1949 3 -A 3,227.98 25,823.8 7680 KNUTH,GLADYS 07/1937 3 -A 1,209.79 9,678.3: 9568 EUTIN,ARLEEN 09/1963 1 2,494.55 19,956.4 8640 MANNING,ALICE 07/1928 3 -A 1,345.18 10,761.4 9653 RICHARDSON,MARTHA 06/1941 3 -D 1,908.78 15,270.2 2829 SISKO,ANNA 01/1941 3 -A 2,434.05 19,472.4 9298 WOJCIECHOWSKI,CECIL 02/1960 3 -A 4,810.33 38,482.6 Death 149,908.32 NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 81 TOTAL PENSION PAYMENTS 2,706,647.64 Barbara Ladue From: Adam Levinson <adam @robertdklausner.com> Sent: Friday, May 01, 2015 5:30 PM To: Dave West (davew @bogdahngroup.com) Cc: Barbara Ladue (ladueb @bbpdpension.com); Pete.Strong @gabrielroeder.com; Bonni Jensen; Robert Klausner Subject: Boynton Fire - SB 534 requirements Attachments: Generic memo re sb 534 (00058823).docx Dave, As you know, the Division of Retirement's 60T regulations became final on Wednesday. Pete has 60 days to complete the new disclosure that he will load into the Division's new portal. I wanted to touch base and confirm that you (and all investment consultants) are comfortable with the remaining pieces of this project. 1. Please refer to my April 22 email which discusses the three bullets that we would like investment consultants to prepare for the customized over memo (the generic copy of which is attached). 2. Additionally, we will need you to prepare the "five -year history of investment returns compared to assumptions and investment portfolio asset allocations" (broken down by asset class). The Division has not specified any particular format to be used for this investment /assumption /allocation history. The information will need to be posted, however, on the respective plan /city websites. Feel free to call or reply with any questions. By copy of this email to Barbara, I am asking her to begin coordinating with the City to add new links and materials to the City's website (Pete's Section 112.664 report, valuation, financial statements, our cover memo and the 5 year history). Thanks, Adam Levinson Klausner, Kaufman, Jensen & Levinson 7080 N.W. 4 Street Plantation, FL 33317 ph. (954) 916 -1202 fax. (954) 916 -1232 Website: www.robertdklausner.com taw , f 6 Disclaimer: This e -mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this 1 To: All members and beneficiaries of the City of Retirement Plan ( "Retirement Plan") From: Board of Trustees Re: Explanatory memorandum regarding new disclosure ( "Section 112.664 Report") Date: Overview This memorandum is intended to provide background and additional disclosure to accompany the new reporting required by Senate Bill 534 (codified as Section 112.664, Fla.Stat.)(hereinafter "S.B. 534 "). Although S.B. 534 was adopted in May of 2013, the detailed regulations spelling out the specific reporting requirements and procedures were not finalized by the Department of Management Services in Tallahassee until April of 2015. The Board is pleased to provide this memorandum as a service to the active membership, retirees and beneficiaries and in an effort to answer anticipated questions in connection with the Board's new Section 112.664 Report. Legal Protections Article X, Section 14, of the Florida Constitution specifically protects pension benefits for public employees and mandates that Florida governmental pension benefits are required to be funded "on a sound actuarial basis." Indeed, in Section 5 of S.B. 534 the Legislature declared that it is an important state interest that government retirement systems in Florida be "managed, administered, and funded in a sound manner as required by s. 14, Article X of the State Constitution and part VII of chapter 112, Florida Statutes." According to state statute, the total contributions to a retirement system "shall be sufficient to meet the normal cost of the retirement system or plan and to amortize the unfunded liability" See §112.64(2), Fla.Stat. All Florida cities are required to make the mandatory employer contributions to the pension plan "at least quarterly." See §112.64(1), Fla.Stat. The required contributions are actuarially determined by the independent actuary employed by the Board of Trustees. If a city fails to comply with its mandatory pension contributions, the Department of Management Services in Tallahassee is empowered to withhold state funds and tax revenue. See §112.63(4)(b), Fla.Stat. Thus, unlike widely reported examples of pension underfunding in other states, Florida law mandates "funding discipline" by the plan sponsor. Funding Discipline As a result of the legal protections for governmental pensions in Florida, by law the Retirement Plan will never become insolvent because it is required to be actuarially funded. The {00058823.DOCX;1} Retirement Plan is actuarially funded through a combination of investment earnings, city, member and state contributions.' Discount Rate/Investment Earnings Assumption In order to properly fund the retirement system, the Board's actuary uses several assumptions and federally approved actuarial methods. One of the most important assumptions is the "discount rate ", which is otherwise referred to as the Plan's "investment earnings assumption ". Even though the discount rate is a long term projection, the Board reviews the investment assumption annually and works closely with independent plan fiduciaries to make sure that plan assets are invested consistent with a long term investment policy. Although investments fluctuate from year to year, the Board has purposely chosen a discount rate which is supported by long term investment performance and financial projections. Unrealized Gains Financial markets have performed well for the past several years, following the market correction in 2009. For example, the annualized rate of return by the Standard & Poor's 500 ( "S &P 500 ") index has been approximately 13% per year for the past several years. As a result of the strong equity returns for the past several years, most governmental pension plans have yet to recognize all of the resulting actuarial gains. Accordingly, it is noteworthy "unrealized" investment gains have not yet been recognized in the Board's Section 112.664 Report or the Board's FY 2014 valuation. Sensitivity Testing S.B. 534 requires the Board to provide hypothetical "run out" dates, assuming that the Board used a theoretical investment return assumption of 2.00% less than the Board's current discount rate. All things being equal, the use of a lower investment return assumption will lower the Plan's current funded ratio. S.B. 534 also requires the Board to include in the new Section 112.664 Report additional "run out" dates, assuming that the plan sponsor, member and State of Florida, stopped contributing to the Retirement Plan. As described above, Florida law mandates funding discipline by plan sponsors. Accordingly, the hypothetical run out dates in the S.B. 534 report are an academic exercise which do not impair the ability of the Board to pay constitutionally protected benefits. In addition to the "run out" dates required by S.B. 534 in the new Section 112.664 Report, the Board also directed its actuary to project the Retirement Plan's valuation using an investment return assumption of 2.00% higher than the Board's current discount rate. In other words, the Board is of the view that proper "sensitivity testing" requires the evaluation of several 1 State contributions are available for police and fire pensions under Chapter 175 and 185, Florida Statutes. 2 Large U.S. equities are a substantial component of the Retirement Plan's investment portfolio, as described under the Portfolio Diversification heading below. {00058823.DOCX;1} possible investment return scenarios. For this very reason, new Governmental Accounting Standards Board ( "GASB ") requirements were recently implemented across the country. In fact, the Board's FY 2014 valuation contains a projection of benefit payments for the next 100 years. A copy of the Board's FY 2014 valuation containing the new GASB 67 100 year projection is available upon request, as are the additional sensitivity testing calculations performed by the Board's actuary. Amortization schedule Defined benefit pensions are paid monthly over a retiree's or beneficiary's lifetime. As a result, pension trustees invest with a long term investment horizon. By law, Florida governmental plans are permitted to amortize their liabilities over thirty years. While the "funded ratio" of many Florida governmental plans is less than 100 %, it is anticipated if all assumptions are borne out that the Retirement Plan will be approximately 100% funded at the end of the 30 year amortization period. Many professionals consider the Board's amortization schedule to be similar to a 30 year mortgage. The remaining balance on one's mortgage is usually less important than the ability to make the full monthly payments. Portfolio diversification As long term investors the Board employs a long term investment strategy which is based on a written investment policy. The Board retains a qualified investment consultant who monitors the Board's portfolio, as a fiduciary, consistent with the Board's investment policy. The Board's investments are diversified into several assets classes managed by different investment advisors in order to minimize volatility in the portfolio. The past five years of investment returns (along with the allocations of cash, equity, bond and alternative investments) are set forth in the new Section 112.664 Report. A copy of the Board's quarterly investment reports are available upon request. {00058823.DOCX;1} Barbara Ladue From: DivisionOfRetirement @rol.frs.state.fl.us Sent: Friday, May 01, 2015 4:00 PM To: ladueb @bbpdpension.com Subject: Implementation of Chapter 60T- 1.0035, Florida Administrative Code TO: Addressee FROM: Keith Brinkman, Bureau Chief Bureau of Local Retirement Systems DATE: April 30, 2015 RE: Rules Implementing Chapter 60T- 1.0035, Florida Administrative Code Additional Actuarial Disclosures required under section 112.664, F.S. In 2013, the Legislature amended Part VII of Chapter 112, Florida Statutes, to require certain additional actuarial disclosures from all local government pension plans, using prescribed assumptions and methods. The Department of Management Services has been working to promulgate rules implementing this statutory requirement, including holding two rules workshops and a hearing to encourage public feedback to the draft and proposed rules. The department carefully considered the written and verbal comments received during the rule- making process and many of the suggestions were incorporated into the final rule, contained in Chapter 60T- 1.0035, Florida Administrative Code, which went into effect on Apr. 29, 2015. A copy of the final rule may be accessed online at the Department of States website, www.flrules.org, or here. Section 112.664, Florida Statutes, requires that, In addition to the other reporting requirements of this part, within 60 days after receipt of the certified actuarial report submitted after the close of the plan year that ends on or after Jun. 30, 2014, and thereafter in each year required under s. 112.63(2), each defined benefit retirement system or plan, excluding the Florida Retirement System, shall prepare and electronically report the following information to the Department of Management Services in a format prescribed by the department This required information includes: - annual financial statements that are in compliance with Governmental Accounting Standards Board Statement Nos. 67 & 68, using a prescribed mortality table and interest assumption rate; - information indicating the number of months or years that the plans current market value of assets can sustain payment of expected retirement benefits under the current valuation and prescribed assumptions; and - information indicating the recommended contributions to the plan as a dollar amount and percentage of payroll, under the current valuation and prescribed assumptions. The section also requires that each plan present this information on its website, along with links to recent financial statements and valuations, and a five -year history of investment returns compared to assumptions and investment portfolio asset allocations. The section defines non - compliance and describes the potential ramifications. . Chapter 60T- 1.0035, Florida Administrative Code, provides the required format of the electronic data submissions to comply with this statutory provision and the Department of Management Services has already communicated instructions to the plan actuaries on how to use the online portal by which the submissions will be made. The data files must be submitted in a semi -colon delimited format, using the template specified in the rule. All submissions must include a pdf file of the annual financial statements in their entirety, and be certified by the submitting actuary for compliance. Please be sure to contact your plan actuary to ensure that all the required file submissions are timely made. The additional actuarial disclosures are required to be made within 60 days of the board of trustees approval of the certified actuarial valuation for plan years ending on or after Jun. 30, 2014. For plans that have already approved actuarial valuations since Jun. 30, 2014, and before Apr. 29, 2015, (the effective date of the rule), the disclosures must be submitted to the department within 60 days of Apr. 29, 2015. If the 60 day falls on a weekend, then the submission deadline will be the following business day. If you have any questions about the requirements of the rule, please contact my office at 850- 488 -2784, or via email at local ret @dms.myflorida.com. 2 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS April 30, 2015 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16747 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 04/30/15 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 04/01/15 DRAFTED EMAIL REGARDING FIDUCIARY LIABILITY 1.00 300.00 INSURANCE; REVIEW QUOTES 04/03/15 REVIEW NEWLY PUBLISHED 60T REGS 0.30 90.00 04/07/15 REVIEW EMAILS AND CAPITAL CALL; REVIEW FILE 0.50 150.00 04/15/15 REVIEW FINAL REGS AND PENDING ISSUES 0.50 150.00 04/21/15 REVIEW EMAILS; DRAFTED EMAIL RE SECTION 1.00 300.00 175.032; REVIEW FILE 04/28/15 REVIEW AGENDA AND FILE 0.50 150.00 04/29/15 REVIEW FILE; CONFER WITH SAK 0.50 150.00 Total for Services 4.30 $1,290.00 CURRENT BILL TOTAL AMOUNT DUE $ 1,290.00 Past Due Balance 4,770.00 AMOUNT DUE $6,060.00 FORM 1 STATEMENT OF 2014 Please print or type your name, mailing FINANCIAL INTERESTS I FOR OFFICE USE ONLY: address, agency name, and position below: LAST NAME -- FIRST NAME -- MIDDLE NAME : MAILING ADDRESS : CITY : ZIP : COUNTY : NAME OF AGENCY : NAME OF OFFICE OR POSITION HELD OR SOUGHT : You are not limited to the space on the lines on this form. Attach additional sheets, if necessary. CHECK ONLY IF ❑ CANDIDATE OR ❑ NEW EMPLOYEE OR APPOINTEE * * ** BOTH PARTS OF THIS SECTION MUST BE COMPLETED * * ** DISCLOSURE PERIOD: THIS STATEMENT REFLECTS YOUR FINANCIAL INTERESTS FOR THE PRECEDING TAX YEAR, WHETHER BASED ON A CALENDAR YEAR OR ON A FISCAL YEAR. PLEASE STATE BELOW WHETHER THIS STATEMENT IS FOR THE PRECEDING TAX YEAR ENDING EITHER (must check one): ❑ DECEMBER 31, 2014 OR ❑ SPECIFY TAX YEAR IF OTHER THAN THE CALENDAR YEAR: MANNER OF CALCULATING REPORTABLE INTERESTS: FILERS HAVE THE OPTION OF USING REPORTING THRESHOLDS THAT ARE ABSOLUTE DOLLAR VALUES, WHICH REQUIRES FEWER CALCULATIONS, OR USING COMPARATIVE THRESHOLDS, WHICH ARE USUALLY BASED ON PERCENTAGE VALUES (see instructions for further details). CHECK THE ONE YOU ARE USING: ❑ COMPARATIVE (PERCENTAGE) THRESHOLDS OR ❑ DOLLAR VALUE THRESHOLDS PART A -- PRIMARY SOURCES OF INCOME [Major sources of income to the reporting person - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF SOURCE SOURCES DESCRIPTION OF THE SOURCE'S OF INCOME ADDRESS PRINCIPAL BUSINESS ACTIVITY PART B — SECONDARY SOURCES OF INCOME [Major customers, clients, and other sources of income to businesses owned by the reporting person - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF NAME OF MAJOR SOURCES ADDRESS PRINCIPAL BUSINESS BUSINESS ENTITY OF BUSINESS' INCOME OF SOURCE ACTIVITY OF SOURCE PART C -- REAL PROPERTY [Land, buildings owned by the reporting person - See instructions] FILING INSTRUCTIONS for when (If you have nothing to report, write "none" or "n /a ") and where to file this form are located at the bottom of page 2. INSTRUCTIONS on who must file this form and how to fill it out begin on page 3. CE FORM 1 - Effective: January 1. 2015 (Continued on reverse side) PAGE 1 Adopted by reference in Rule 34- 8.202(1), F.A.C. PART D — INTANGIBLE PERSONAL PROPERTY [Stocks, bonds, certificates of deposit, etc. - See instructions] (If you have nothing to report, write "none" or "n /a ") 1 TYPE OF INTANGIBLE BUSINESS ENTITY TO WHICH THE PROPERTY RELATES PART E — LIABILITIES [Major debts - See instructions] (If you have nothing to report, write "none" or "n /a ") NAME OF CREDITOR ADDRESS OF CREDITOR PART F — INTERESTS IN SPECIFIED BUSINESSES [Ownership or positions in certain types of businesses - See instructions] (If you have nothing to report, write "none" or "n/a") BUSINESS ENTITY # 1 BUSINESS ENTITY # 2 NAME OF BUSINESS ENTITY ADDRESS OF BUSINESS ENTITY PRINCIPAL BUSINESS ACTIVITY POSITION HELD WITH ENTITY I OWN MORE THAN A 5% INTEREST IN THE BUSINESS NATURE OF MY OWNERSHIP INTEREST IF ANY OF PARTS A THROUGH F ARE CONTINUED ON A SEPARATE SHEET, PLEASE CHECK HERE ❑ SIGNATURE OF FILER: CPA or ATTORNEY SIGNATURE ONLY If a certified public accountant licensed under Chapter 473, or Signature: attorney in good standing with the Florida Bar prepared this form for you, he or she must complete the following statement: prepared the CE Form 1 in accordance with Section 112.3145, Florida Statutes, and the instructions to the form. Upon my reasonable knowledge and belief, the disclosure herein is true and correct. Date Signed: CPA /Attorney Signature: Date Signed: FILING INSTRUCTIONS:, WHAT TO FILE: WHERE TO FILE: WHEN TO FILE: After completing all parts of this form, including If you were mailed the form by the Commission Initially, each local officer /employee, state officer, signing and dating it send back only the first on Ethics or a County Supervisor of Elections for and specified state employee must file within sheet (pages 1 and 2) for filing. your annual disclosure filing, return the form to 30 days of the date of his or her appointment that location. or of the beginning of employment. Appointees If you have nothing to report in a particular Local officers /employees file with the who must be confirmed by the Senate must file prior to confirmation, even if that is less than section, you must write "none" or "n /a" in that Supervisor of Elections of the county in which they 30 days from the date of their appointment. section(s). permanently reside. (If you do not permanently reside in Florida, file with the Supervisor of the Candidates for publicly - elected local office must NOTE: county where your agency has its headquarters.) file at the same time they file their qualifying MULTIPLE FILING UNNECESSARY: papers. State officers or specified state employees Thereafter, local officers /employees, state A candidate who previously filed Form 1 because file with the Commission on Ethics, P.O. Drawer of another public position must at least file a copy 15709, Tallahassee, FL 32317 -5709; physical officers, and specified state employees are of his or her original Form 1 when qualifying. A required to file by July 1st following each calendar Q fY 9 address: 325 John Knox Road, Building E, Suite year in which they hold their positions. candidate who files a Form 1 with a qualifying 200, Tallahassee, FL 32303. officer is not required to file with the Commission Finally, at the end of office or employment, each or Supervisor of Elections. Candidates file this form together with their local officer /employee, state officer, and specified qualifying papers. state employee is required to file a final disclosure To determine what category your position falls form (Form 1F) within 60 days of leaving office or under, see the "Who Must File" Instructions on employment. However, filing a CE Form 1F (Final page 3. Statement of Financial Interests) does not relieve the filer of filing a CE Form 1 if he or she was in Facsimiles will not be accepted. their position on December 31, 2014. CE FORM 1 - Effective: January 1, 2015. PAGE 2 Adopted by reference in Rule 34- 8.202(1), F.A.C. NOTICE Annual Statements of Financial Interests are due July 1. If the annual form is not filed or postmarked by September 1, an automatic fine of $25 for each day late will be imposed, up to a maximum penalty of $1,500. [s. 112.3145, F.S. - applicable to non - judicial officials] Failure to file also can result in removal from public office or employment. [Ch. 2014 -183, Laws of Florida] In addition, failure to make any required disclosure constitutes grounds for and may be punished by one or more of the following: disqualification from being on the ballot, impeachment, removal, or suspension from office or employment, demotion, reduction in salary, reprimand, or a civil penalty not exceeding $10,000. [s. 112.317, F.S.] WHO MUST FILE FORM 1: 1) Elected public officials not serving in a political subdivision of the municipal attorney; chief county or municipal building inspector; county state and any person appointed to fill a vacancy in such office, unless or municipal water resources coordinator; county or municipal pollution required to file full disclosure on Form 6. control director; county or municipal environmental control director; county 2) Appointed members of each board, commission, authority, or or municipal administrator with power to grant or deny a land development council having statewide jurisdiction, excluding members of solely advisory permit; chief of police; fire chief; municipal clerk; appointed district school bodies, but including judicial nominating commission members; Directors superintendent; community college president; district medical examiner; of Enterprise Florida, Scripps Florida Funding Corporation, and Workforce purchasing agent (regardless of title) having the authority to make any Florida; and members of the Council on the Social Status of Black Men purchase exceeding $20,000 for the local govemmental unit. and Boys; the Executive Director, Govemors, and senior managers of 8) Officers and employees of entities serving as chief administrative Citizens Property Insurance Corporation; Governors and senior managers officer of a political subdivision. of Florida Workers' Compensation Joint Underwriting Association; board 9) Members of governing boards of charter schools operated by a members of the Northeast Fla. Regional Transportation Commission; city or other public entity. members of the board of Triumph Gulf Coast, Inc; members of the board 10) Employees in the office of the Govemor or of a Cabinet member of Florida Is For Veterans, Inc.; and members of the Technology Advisory who are exempt from the Career Service System, excluding secretarial, Council within the Agency for State Technology. clerical, and similar positions. 3) The Commissioner of Education, members of the State Board of 11) The following positions in each state department, commission, Education, the Board of Govemors, and the local Boards of Trustees and board, or council: Secretary, Assistant or Deputy Secretary, Executive Presidents of state universities. Director, Assistant or Deputy Executive Director, and anyone having the 4) Persons elected to office in any political subdivision (such as power normally conferred upon such persons, regardless of title. municipalities, counties, and special districts) and any person appointed 12) The following positions in each state department or division: to fill a vacancy in such office, unless required to file Form 6. Director, Assistant or Deputy Director, Bureau Chief, Assistant Bureau 5) Appointed members of the following boards, councils, Chief, and any person having the power normally conferred upon such commissions, authorities, or other bodies of county, municipality, school persons, regardless of title. district, independent special district, or other political subdivision: the 13) Assistant State Attorneys, Assistant Public Defenders, criminal goveming body of the subdivision; community college or junior college conflict and civil regional counsel, and assistant criminal conflict and civil district boards of trustees; boards having the power to enforce local code regional counsel, Public Counsel, full -time state employees serving as provisions; boards of adjustment; planning or zoning boards having the counsel or assistant counsel to a state agency, administrative law judges, power to recommend, create, or modify land planning or zoning within and hearing officers. a political subdivision, except for citizen advisory committees, technical 14) The Superintendent or Director of a state mental health institute coordinating committees, and similar groups who only have the power established for training and research in the mental health field, or any corrections, training, to tannin or zoning boards; pension or major state institution or facility established for c g, to make recommendations p g p J 9 retirement boards empowered to invest pension or retirement funds treatment, or rehabilitation. or determine entitlement to or amount of pensions or other retirement 15) State agency Business Managers, Finance and Accounting benefits. Directors, Personnel Officers, Grant Coordinators, and purchasing agents 6) Any appointed member of a local government board who is (regardless of title) with power to make a purchase exceeding $20,000. required to file a statement of financial interests by the appointing authority 16) The following positions in legislative branch agencies: each or the enabling legislation, ordinance, or resolution creating the board. employee (other than those employed in maintenance, clerical, 7) Persons holding any of these positions in local government: secretarial, or similar positions and legislative assistants exempted mayor; county or city manager; chief administrative employee or finance by the presiding officer of their house); and each employee of the director of a county, municipality, or other political subdivision; county or Commission on Ethics. INSTRUCTIONS FOR COMPLETING FORM 1: INTRODUCTORY INFORMATION (At Top of Form): PUBLIC RECORD: The disclosure form and everything attached to it is a public record. Your Social Security Number is not required and you If your name, mailing address, public agency, and position are already should redact it from any documents you file. If you are an active or printed on the form, you do not need to provide this information unless former officer or employee listed in Section 119.071(4)(d), F.S., whose it should be changed. To change any of this information, write the home address is exempt from disclosure, the Commission is required to correct information on the form, and contact your agency's financial maintain the confidentiality of your home address if you submit a written disclosure coordinator. Your coordinator is identified in the financial request for confidentiality. Persons listed in Section 119.071(4)(d), F.S., disclosure portal on the Commission on Ethics website: www.ethics. are encouraged to provide an address other than their home address. state.fl.us. DISCLOSURE PERIOD: The tax year for most individuals is the NAME OF AGENCY: This should be the name of the governmental calendar year (January 1 through December 31). If that is the case unit which you serve or served, by which you are or were employed, for you, then your financial interests should be reported for the or for which you are a candidate. calendar year 2014; just check the box and you do not need to add OFFICE OR POSITION HELD OR SOUGHT: Use the title of the office any information in this part of the form. However, if you file your IRS or position you hold, are seeking, or held during the disclosure period tax return based on a tax year that is not the calendar year, you even if you have since left that position. If you are a candidate for office should specify the dates of your tax year in this portion of the form or are a new employee or appointee, check the appropriate box. and check the appropriate box. This is the time frame or "disclosure period" for your report. CE FORM 1 - Effective'. January 1, 2015. Adopted by reference in Rule 34- 8.202(1), F.A.C. PAGE 3 MANNER OF CALCULATING REPORTABLE INTEREST As noted on the form, filers have the option of reporting based on either thresholds that are comparative (usually, based on percentage values) or thresholds that are based on absolute dollar values. The instructions on the following pages specifically describe the different thresholds. Check the box that reflects the choice you have made. You must use the type of threshold you have chosen for each part of the form. In other words, if you choose to report based on absolute dollar value thresholds, you cannot use a percentage threshold on any part of the form. IF'Y H AVE CHOSEN DOLLAR VALUE THRESHOLDS THE FOLLOWING INST'RIJCTIONS APPLY PART A - PRIMARY SOURCES OF INCOME (1) You owned (either directly or indirectly in the form of an equitable or [Required by s. 112.3145(3)(a)1 or (b)1, F.S.] beneficial interest) during the disclosure period more than 5% of the total assets or capital stock of a business entity (a corporation, partnership, Part A is intended to require the disclosure of your principal sources LLC, limited partnership, proprietorship, joint venture, trust, firm, etc., of income during the disclosure period. You do not have to disclose the doing business in Florida); and amount of income received, and you need not list your public salary from (2) You received more than $5,000 of your gross income during the serving in the position(s) which requires you to file this form. The income disclosure period from that business entity. of your spouse need not be disclosed; however, if there is joint income to you and your spouse from property you own jointly (such as interest If your interests and gross income exceeded these thresholds, then for that or dividends from a bank account or stocks), you should disclose the business entity you must list every source of income to the business entity source of that income if it exceeded the threshold. which exceeded 10% of the business entity's gross income (computed on the basis of the business entity's most recently completed fiscal year), the Please list in this part of the form the name, address, and principal source's address, and the source's principal business activity. business activity of each source of your income which exceeded $2,500 of gross income received by you in your own name or by any other Examples: person for your use or benefit. — You are the sole proprietor of a dry cleaning business, from which "Gross income" means the same as it does for income tax you received more than $5,000. If only one customer, a uniform rental purposes, even if the income is not actually taxable, such as interest company, provided more than 10% of your dry cleaning business, you on tax -free bonds. Examples include: compensation for services, must list the name of the uniform rental company, its address, and its income from business, gains from property dealings, interest, rents, principal business activity (uniform rentals). dividends, pensions, IRA distributions, social security, distributive share — You are a 20% partner in a partnership that owns a shopping mall of partnership gross income, and alimony, but not child support. and your partnership income exceeded the thresholds listed above. You Examples: should list each tenant of the mall that provided more than 10% of the partnership's gross income, the tenant's address and principal business — If you were employed by a company that manufactures activity. computers and received more than $2,500, then you should list the name of the company, its address, and its principal business activity PART C - REAL PROPERTY (computer manufacturing). — If you were a partner in a law firm and your distributive share [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] of partnership gross income exceeded $2,500, then you should list In this part, list the location or description of all real property in Florida the name of the firm, its address, and its principal business activity in which you owned directly or indirectly at any time during the previous tax (practice of law). year in excess of 5% of the property's value. You are not required to list your residences and vacation homes. — If you were the sole proprietor of a retail gift business and your gross income from the business exceeded $2,500, then you should Indirect ownership includes situations where you are a beneficiary of a list the name of the business, its address, and its principal business trust that owns the property, as well as situations where you are more than activity (retail gift sales). a 5% partner in a partnership or stockholder in a corporation that owns the property. The value of the property may be determined by the most recently — If you received income from investments in stocks and bonds, assessed value for tax purposes, in the absence of a more current appraisal. you are required to list only each individual company from which you derived more than $2,500, rather than aggregating all of your The location or description of the property should be sufficient to enable investment income. anyone who looks at the form to identify the property. A street address should be used, if one exists. — If more than $2,500 of your gross income was gain from the sale of property (not just the selling price), then you should fist as PART D - INTANGIBLE PERSONAL PROPERTY a source of income the name of the purchaser, the purchaser's [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] address, and the purchaser's principal business activity. If the purchaser's identity is unknown, such as where securities listed Describe any intangible personal property that, at any time during the on an exchange are sold through a brokerage firm, the source disclosure period, was worth more than $10,000 and state the business of income should be listed simply as "sale of (name of company) entity to which the property related. Intangible personal property includes stock," for example. things such as cash on hand, stocks, bonds, certificates of deposit, vehicle — If more than $2,500 of your gross income was in the form of leases, interests in businesses, beneficial interests in trusts, money owed interest from one particular financial institution (aggregating interest you Deferred Retirement Option Program (DROP) accounts, the Florida from all CD's, accounts, etc., at that institution), list the name of the Prepaid College Plan, and bank accounts. Intangible personal property institution, its address, and its principal business activity. also includes investment products held in IRAs, brokerage accounts, and the Florida College Investment Plan. Note that the product contained in PART B - SECONDARY SOURCES OF INCOME a brokerage account, IRA, or the Florida College Investment Plan is your asset —not the account or plan itself. Things like automobiles and houses [Required by s. 112.3145(3)(a)2 or (b)2, F.S.] you own, jewelry, and paintings are not intangible property. Intangibles This part is intended to require the disclosure of major customers, clients, relating to the same business entity may be aggregated; for example, CDs and other sources of income to businesses in which you own an interest. It and savings accounts with the same bank. Property owned as tenants by is not for reporting income from second jobs. That kind of income should be the entirety or as joint tenants with right of survivorship should be valued at reported as "Primary Sources of Income," if it meets the reporting threshold. 100 %. The value of a leased vehicle is the vehicle's present value minus the You will not have anything to report unless, during the disclosure period: lease residual (a number found on the lease document). CE FORM 1 - Effective. January 1, 2015 . Adopted by reference in Rule 34- 8.202(1), F.A.C.. PAGE 4 PART E - LIABILITIES • licensees; pari - mutuel wagering companies, utility companies, [Required by s. 112.3145(3)(a)4 or (b)4, F.S.] entities controlled by the Public Service Commission; and entities granted a franchise to operate by either a city or a county List the name and address of each creditor to whom you owed government. more than $10,000 at any time during the disclosure period. The You are required to disclose in this part of the form the fact that amount of the liability of a vehicle lease is the sum of any past- due payments and all unpaid prospective lease payments. You you owned during the disclosure period an interest in, or held any are not required to list the amount of any debt. You do not have of certain positions with particular types of businesses listed above. to disclose credit card and retail installment accounts, taxes owed You are required to make this disclosure if you own or owned (either (unless reduced to a judgment), indebtedness on a life insurance directly or indirectly in the form of an equitable or beneficial interest) policy owed to the company of issuance, or contingent liabilities. at any time during the disclosure period more than 5% of the total A "contingent liability" is one that will become an actual liability assets or capital stock of one of the types of business entities listed only when one or more future events occur or fail to occur such above. You also must complete this part of the form for each of these as where you are liable only as a guarantor, surety, or endorser types of businesses for which you are, or were at any time during on a promissory note. If you are a "co- make" and have signed as the disclosure period, an officer, director, partner, proprietor, or agent being jointly liable or jointly and severally liable, then this is not a (other than a resident agent solely for service of process). contingent liability. If you have or held such a position or ownership interest in one of these types of businesses, list the name of the business, its PART F - INTERESTS IN SPECIFIED BUSINESSES address and principal business activity, and the position held with [Required by s. 112.3145(5), F.S.] the business (if any). If you own(ed) more than a 5% interest in the business, you must indicate that fact and describe the nature of your The types of businesses covered in this disclosure include: state interest. and federally chartered banks; state and federal savings and loan associations; cemetery companies; insurance companies; mortgage (End of Dollar Value Thresholds Instructions.) companies; credit unions; small loan companies; alcoholic beverage IF YOU HAVE CHOSEN COMPARATIVE (PERCENTAGE) THRESHOLDS : THE FOLLOWING INSTRUCTIONS APPLY PART A - PRIMARY SOURCES OF INCOME your total gross income, then you should list the name of the [Required by s. 112.3145(3)(a)1 or (b)1, F.S.] business, its address, and its principal business activity (retail gift sales). Part A is intended to require the disclosure of your principal — If you received income from investments in stocks and sources of income during the disclosure period. You do not have bonds, you are required to list only each individual company to disclose the amount of income received, and you need not list from which you derived more than 5% of your gross income, your public salary received from serving in the position(s) which rather than aggregating all of your investment income. requires you to file this form, but this amount should be included when calculating your gross income for the disclosure period. The — If more than 5% of your gross income was gain from the sale income of your spouse need not be disclosed; however, if there is of property (not just the selling price), then you should list as a joint income to you and your spouse from property you own jointly source of income the name of the purchaser, the purchaser's (such as interest or dividends from a bank account or stocks), you address, and the purchaser's principal business activity. If the should include all of that income when calculating your gross income purchaser's identity is unknown, such as where securities listed and disclose the source of that income if it exceeded the threshold. on an exchange are sold through a brokerage firm, the source of income should be listed as "sale of (name of company) Please list in this part of the form the name, address, and stock," for example. principal business activity of each source of your income which exceeded 5% of the gross income received by you in your own — If more than 5% of your gross income (or, alternatively, name or by any other person for your benefit or use during the $2,500) was in the form of interest from one particular financial disclosure period. institution (aggregating interest from all CD's, accounts, etc., at "Gross income" means the same as it does for income tax that institution), list the name of the institution, its address, and purposes, even if the income is not actually taxable, such as interest its principal business activity. on income from b business, a aii from property ert compensation al n interest rents, PART B - SECONDARY SOURCES OF INCOME dividends, pensions, IRA distributions, social security, distributive [Required by s. 112.3145(3)(a)2 or (b)2, F.S.] share of partnership gross income, and alimony, but not child This part is intended to require the disclosure of major customers, support. clients, and other sources of income to businesses in which you own Examples: an interest. It is not for reporting income from second jobs. That kind — If you were employed by a company that manufactures of income should be reported as a "Primary Source of Income," if it computers and received more than 5% of your gross income meets the reporting threshold. You will not have anything to report (salary, commissions, etc.) from the company, you should l unless during the disclosure period: the name of the company, its address, and its principal business (1) You owned (either directly or indirectly in the form of an activity (computer manufacturing). equitable or beneficial interest) more than 5% of the total assets — If you were a partner in a law firm and your distributive or capital stock of a business entity (a corporation, partnership, LLC, limited partnership, proprietorship, joint venture, trust, firm, share of partnership gross income exceeded 5% of your gross income, then you should list the name of the firm, its address, etc., doing business in Florida); and and its principal business activity (practice of law). (2) You received more than 10% of your gross income from that — If you were the sole proprietor of a retail gift business business entity; and and your gross income from the business exceeded 5% of (3) You received more than $1,500 in gross income from that business entity. CE FORM 1 - Effective' January 1, 2015 . Adopted by reference in Rule 34- 8.202(1), F.A.C. PAGE 5 , ' If your interests and gross income exceeded these thresholds, then for that Example: business entity you must list every source of income to the business entity You own 50% of the stock of a small corporation that is which exceeded 10% of the business entity's gross income (computed on worth $100,000, the estimated fair market value of your home the basis of the business entity's most recently completed fiscal year), the and other property (bank accounts, automobile, furniture, etc.) source's address, and the source's principal business activity. is $200,000. As your total assets are worth $250,000, you must Examples: disclose intangibles worth over $25,000. Since the value of the — You are the sole proprietor of a dry cleaning business, from which stock exceeds this threshold, you should list "stock" and the name you received more than 10% of your gross income —an amount of the corporation. If your accounts with a particular bank exceed that was more than $1,500. If only one customer, a uniform rental $25,000, you should list "bank accounts' and bank's name. company, provided more than 10% of your dry cleaning business, you PART E - LIABILITIES must list the name of the uniform rental company, its address, and its principal business activity (uniform rentals). [Required by s. 112.3145(3)(a)4 or (b)4, F.S.] — You are a 20% partner in a partnership that owns a shopping mall List the name and address of each creditor to whom you owed any and your partnership income exceeded the thresholds listed above. amount that, at any time during the disclosure period, exceeded your You should list each tenant of the mall that provided more than 10% net worth. You are not required to list the amount of any debt or your of the partnership's gross income, the tenant's address and principal net worth. You do not have to disclose: credit card and retail installment business activity. accounts, taxes owed (unless reduced to a judgment), indebtedness on a life insurance policy owed to the company of issuance, or contingent PART C - REAL PROPERTY liabilities. A "contingent liability" is one that will become an actual liability only when one or more future events occur or fail to occur, such as where [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] you are liable only as a guarantor, surety, or endorser on a promissory In this part, list the location or description of all real property note. If you are a "co- maker" and have signed as being jointly liable or in Florida in which you owned directly or indirectly at any time jointly and severally liable, then this is not a contingent liability. during the previous tax year in excess of 5% of the property's Calculations: In order to decide whether the debt exceeds your net value. You are not required to list your residences and vacation worth, you will need to total all of your liabilities (including promissory homes. notes, mortgages, credit card debts, judgments against you, etc.). The Indirect ownership includes situations where you are a amount of the liability of a vehicle lease is the sum of any past -due beneficiary of a trust that owns the property, as well as situations payments and all unpaid prospective lease payments. Subtract the sum where you are more than a 5% partner in a partnership or total of your liabilities from the value of all your assets as calculated stockholder in a corporation that owns the property. The value of above for Part D. This is your net worth." You must list on the form each the property may be determined by the most recently assessed creditor to whom your debt exceeded this amount unless it is one of the value for tax purposes, in the absence of a more current types of indebtedness listed in the paragraph above (credit card and retail appraisal. installment accounts, etc.). Joint liabilities with others for which you are "jointly and severally liable," meaning that you may be liable for either your The location or description of the property should be sufficient part or the whole of the obligation, should be included in your calculations to enable anyone who looks at the form to identify the property. A at 100% of the amount owed. street address should be used, if one exists. PART D - INTANGIBLE PERSONAL PROPERTY Examples: — You owe $15,000 to a bank for student loans, $5,000 for credit [Required by s. 112.3145(3)(a)3 or (b)3, F.S.] card debts, and $60,000 (with spouse) to a savings and loan for Describe any intangible personal property that, at any time a home mortgage. Your home (owned by you and your spouse) is during the disclosure period, was worth more than 10% of your worth $80,000 and your other property is worth $20,000. Since your total assets, and state the business entity to which the property net worth is $20,000 ($100,000 minus $80,000), you must report only related. Intangible personal property includes things such as the name and address of the savings and loan. cash on hand, stocks, bonds, certificates of deposit, vehicle leases, interests in businesses, beneficial interests in trusts, PART F - INTERESTS IN SPECIFIED BUSINESSES money owed you, Deferred Retirement Option Program (DROP) [Required by s. 112.3145(5), F.S.] accounts, the Florida Prepaid College Plan, and bank accounts. Intangible personal property also includes investment products The types of businesses covered in this disclosure include: state and held in IRAs, brokerage accounts, and the Florida College federally chartered banks; state and federal savings and loan associations; Investment Plan. Note that the product contained in a brokerage cemetery companies; insurance companies; mortgage companies; credit account, IRA, or the Florida College Investment Plan is your unions; small loan companies; alcoholic beverage licensees; pari - mutuel asset —not the account or plan itself. Things like automobiles wagering companies, utility companies, entities controlled by the Public and houses you own, jewelry, and paintings are not intangible Service Commission; and entities granted a franchise to operate by either ro ert . Intangibles relating to the same business entity may P Y 9 9 Y Y a city or a county government. be aggregated; for example, CD's and savings accounts with the You are required to disclose in this part of the form the fact that same bank. you owned during the disclosure period an interest in, or held any of Calculations: In order to decide whether the intangible certain positions with, particular types of businesses listed above. You property exceeds 10% of your total assets, you will need to total are required to make this disclosure if you own or owned (either directly the fair market value of all of your assets (including real property, or indirectly in the form of an equitable or beneficial interest) at any time intangible property, and tangible personal property such as jewelry, during the disclosure period more than 5% of the total assets or capital furniture, etc.). When making this calculation, do not subtract any stock of one of the types of business entities listed above. You also must liabilities (debts) that may relate to the property. Multiply the total complete this part of the form for each of these types of businesses figure by 10% to arrive at the disclosure threshold. List only the for which you are, or were at any time during the disclosure period, an intangibles that exceed this threshold amount. The value of a officer, director, partner, proprietor, or agent (other than a resident agent leased vehicle is the vehicle's present value minus the lease solely for service of process). residual (a number which can be found on the lease document). If you have or held such a position or ownership interest in one Property that is only jointly owned property should be valued of these types of businesses, list the name of the business, its address according to the percentage of your joint ownership. Property and principal business activity, and the position held with the business (if owned as tenants by the entirety or as joint tenants with right of any). If you own(ed) more than a 5% interest in the business, you must survivorship should be valued at 100 %. None of your calculations indicate that fact and describe the nature of your interest. or the value of the property have to be disclosed on the form. (End of Percentage Thresholds Instructions.) CE FORM 1 - Effective: January 1, 2015. Adopted by reference in Rule 34- 8.202(1). F.A.C. PAGE 6 City of Boynton Beach Firefighters Retirement System Investment Performance Review 1st Quarter 2015 THE BOGDAHN GROUP. W W W. B O G D A H N G R O U P. C O M simplifying your investment and fiduciary decisions p y 'l�l�� y�� II II O III � o �l�u�pll� 1st Quarter 2015 Market Environment THF. 1 (� BOGDAHN GROUP I The Market Environment Major Market Index Performance As of March 31, 2015 Quarter Performance MSCI ACWxUS 11.111 3.6% • Investment returns during the first quarter of 2015 were positive across MSCI EAFE I 5.0% the board. Domestically, small and mid cap companies outperformed MSCI Emerg Mkts 2.3% large cap companies for the second consecutive quarter. This outperformance is due largely to a strengthening U.S. dollar (USD), S &P 500 - 1.0% with large cap companies in the S &P 500 Index generally having more Russell 3000 1.8% international currency exposure versus the more domestically focused Russell 1000 1.6% small cap companies in the Russell 2000 Index. Russell MidCap 4.0% Russell 2000 14.3% • Despite the strong USD, which provided a headwind to international returns in the U.S., international stocks had a strong start versus Barclays US Agg 1.6% domestic indices. Through the first quarter, both developed Barclays US Govt _ 1 1.6% international and emerging markets outperformed large cap U.S. Barclays US TIPS 1.4% indices with only mid to small domestic companies keeping pace. The Barclays MBS 1 1.1% outperformance was primarily driven by the European Central Bank's Barclays Corp IG , 1 2.3% January decision to begin a quantitative easing program to combat y slowing growth prospects throughout the region. 3 -Month T -Bill 0.0% 0.0% 2.0% 4.0% 6.0% • U.S. interest rates fluctuated considerably due to strength of the USD, U.S. economic data, geopolitical news, and the prospect of tighter 1 - Year Performance monetary policy, only to end slightly lower than where they began for MSCI ACWxUS -0.6% the quarter. This decline in rates was a tailwind for bond returns. MSCI EAFE -o.5% Investment grade corporate bonds outperformed U.S. government MSCI Emerg Mkts _ 1 0.8% bonds and mortgage- backed securities (MBS) due to their longer MillillIMMIll duration and as a result of tightening spreads. S &P 500 12.7% II Russell 3000 12.4% • Trailing one -year returns painted a different picture, with U.S. large Russell 1000 I 12.7% company stocks outperforming all indices except the Russell Mid Cap Russell MidCap 13.7% Index. Despite the strong quarter, developed international stocks Russell 2000 1 8.2% posted negative returns with emerging market stocks finishing the year - narrowly positive. Bond returns over the last 12 months were strong, Barclays US Agg 11111111111111 5.7% primarily driven by falling interest rates across the majority of the yield Barclays US Govt 1 5.2% curve. Barclays US TIPS I 3.1% .., , Barclays MBS 15.5% - Barclays Corp IG 16.8% # . 3 -Month T -Bill 0.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Source: Investment Metrics g THE 2 ( BOGDAHN ' GROUP. The Market Environment Domestic Equity Style Index Performance As of March 31, 2015 3 -Month T -Bill 1 1 0.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Source: Investment Metrics TH E 2 C BO GDAHN GROUP The Market Environment Domestic Equity Style Index Performance As of March 31, 2015 Quarter Performance - Russell Style Series 3000 Value - 0.5% Ell • Domestic stocks performed well through the first quarter of the year 3000 Index 1.8% with only large cap value stocks finishing March with negative returns. 3000 Growth 4.o% Mixed economic data created volatility as growing optimism due to favorable corporate earnings reports, strong employment data, and oil 111111 I price stabilization were offset by fears that the Federal Reserve could 1000 Value o.7 °r° speed up its timetable for raising short-term interest rates. However, 1000 Index 1.6% modest GDP, weak durable goods, and weak retail sales reports 1000 Growth - 3.8% released during March alleviated fears of tighter monetary policy in the _ near term, pushing the indices higher to end the quarter. MidCap Value 2.4% MidCap Index 4.0% • There were two notable trends in U.S. domestic equities in the first MidCap Growth 5.4°r° quarter of the 2015. First, mid to small cap companies outperformed large cap stocks through the end of the period. A considerable portion o MUM f this outperformance is attributed to the strengthening of the U.S. 2000 Value 2.0% dollar as investors favored small cap stocks with less exposure to 2000 Index 4.3% foreign currencies than large multinationals. Secondly, growth stocks 2000 Growth 6.6% Il outperformed value stocks throughout the large cap spectrum with -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% A large cap value stocks finishing the quarter in negative territory. ` 1 - Year Performance - Russell Style Series • On average, over the trailing one -year period, returns were strongest in 3000 Value IIIIIIIIII 8.9% the mid cap space with all styles posting double digit returns. Small 3000 Index 12.4% caps trailed both mid and large cap names. Similar to the quarterly 3000 Growth 15.8 °r° results, growth outperformed value throughout the small cap spectrum. • Based on their 20 -year average P/E ratios, current valuations for both 1000 Value 111111=IIM 9.3% timelimumen........ the value and core indices suggest they were modestly overvalued, 1000 Index 12.7% with growth indices outside of the Russell 1000 Growth Index being 1000 Growth illillillill 16.1% close to fair value . Mid cap stocks appeared more overvalued than small caps with large stocks being slightly undervalued. Large cap MidCap Value 11.7% growth stocks were the most undervalued with a current P/E ratio that MidCap Index 13.7% was 91.7% of its long -term average. In contrast, the Russell Mid Cap Value Index, the most overvalued index, had a current P/E ratio that MidCap Growth MIIIIIMIIIIII 15.6% was 124.4% of its long -term average. 2000 Value IIIIIMMII 4.4% 2000 Index 8.2% 2000 Growth 12.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source: Investment Metrics THE 3 (C BO GDAHN \ -d ' GROUP 1 The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2015 Russell 1000 I ■Quarter ❑1 -YearI Consumer Disc (13.1 %) 4.6% 1 17 3% • Within large caps, sector performance was somewhat lackluster as _ . only five of ten economic sectors returned +/- 2% for the quarter. Consumer Staples (8.9 %) 1.3% 1 16.9% Consumer Discretionary and Health Care posted the strongest results ° Ill with Utilities and Energy detracting the most. On a one -year basis, six Energy (7.6 % ) I 2.3 r° of ten sectors posted returns in the double digits with Energy being the Financials (17.1 %) -11.9 ° /° -0.9% 1 only sector with a negative return due to a sharp drop in oil prices 11o.7 °r° which began in the third quarter. Health Care (14.5 %) - 7.4% 27.6% 1 • Small cap performance for the quarter was led by Health Care, Industrials(11.1 %) 0.2% 1 8.5% Consumer Discretionary, and Information Technology. Only Energy - IN ° and Telecom Services posted negative returns for the quarter, both Info Technology (19 %) 1.4/° 1 17.7% returning -0.6% Over the trailing one -year period, five of ten sectors Materials (3.5 %) 11 1.1% returned +10% with only three sectors posting a negative absolute 1 4.5% return. Energy was the largest outlier, returning a disproportionate - Telecom Services (2.1 %) 20% 1 4.9% 39.2% over the last 12 months. ° Utilities (3.0 %) 5.1 /° 1 10.2% • Sector valuations were fairly mixed. On a trailing P/E basis, the , Russell 1000 was relatively cheap compared to the Russell 2000. 15.o °i° 5.0°i° 5.0° 15.0°i° 25.0°i° Based on trailing P /E, four sectors in the S &P 500 had valuations lower Russell 2000 I ■Quarter 01 -Yearl than their 20 year average, one sector is fairly valued, and five sectors Consumer Disc (14.0 %) I 5.2% had valuations above their 20 year average. Information Technology - 1 11.2% and Energy appear to be the most undervalued and Telecom Services Consumer Staples (3.2 %) 0 2°r° 1 10.5% and Utilities were the most overvalued based on their long -term ° average P/E ratios. Energy (3.4 %) 1 o.s /° -39.2% o • By far the most drastic underperformance of all sectors over the past Financials (23.6 %) 1.6/° 1 9.5% year occurred in Energy. Falling from a June high near $115 /barrel, oil Health Care (15.6 %) 12.7% 29.7% prices (Brent Crude Spot Price) plummeted since the beginning of the I third quarter of 2014, but prices appear to have stabilized, closing the Industrials (13.6 %) 2.5% 1.5% quarter near $54 /barrel. The cause of this drastic price change ° centered on the expanding world oil supply with lower forecasts of oil Info Technology (17.9 % ) 5.o r° 1 12.7% consumption growth due to a weaker outlook for the global economy. Materials (a.a °i °) 1 °.7% -2.8% L Telecom Services (0.7 %) -0.6% -2.5% C Utilities (3.5 %) 1 1.0 °x° 1 16.1% -40.0% -30 -20 -10.0% 0.0% 10.0% 20.0% 30.0% Source: Morningstar Direct THE 4 BOGDAHN L 6, GROUP. The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2015 Top 10 Weighted Stocks Top 10 Weighted Stocks 1 - Qtr 1 - Year 1 -Qtr 1 -Year Russell 1000 Wei ht _ Sector R. - 111 . -'. , • . Utilities (3.5 %) I r 1 16 I 2 I -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% glio Source: Morningstar Direct TH E 4 L......0 BOGDAHN GROUP. ih ,.................._ The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2015 Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Weight 1 -Qtr 1 -Year Sector Russell 2000 Weight 1 -Qtr 1 -Year Sector Return Return Return Return Apple Inc 3.55% 13.2% 65.4% Information Technology Qorvo Inc 0.63% N/A N/A Information Technology Exxon Mobil Corporation 1.73% -7.4% - 10.5% Energy ISIS Pharmaceuticals Inc 0.41% 3.1% 47.4% Health Care Microsoft Corp 1.59% -11.9% 1.8% Information Technology Puma Biotechnology Inc 0.30% 24.7% 126.7% Health Care Johnson & Johnson 1.35% -3.1% 5.2% Health Care Office Depot Inc 0.27% 7.3% 122.8% Consumer Discretionary Berkshire Hathaway Inc Class B 1.25% -3.9% 15.5% Financials Ultimate Software Group Inc 0.27% 15.8% 24.1% Information Technology Wells Fargo & Co 1.23% -0.1% 12.4% Financials JetBlue Airways Corp 0.26% 21.4% 121.5% Industrials General Electric Co 1.18% -0.9% -0.8% Industrials Brunswick Corp 0.26% 0.6% 14.8% Consumer Discretionary JPMorgan Chase & Co 1.08% -2.6% 2.4% Financials Graphic Packaging Holding Co 0.26% 7.1% 43.6% Materials Pfizer Inc 1.05% 12.7% 12.2% Health Care DexCom Inc 0.26% 13.2% 50.7% Health Care Procter & Gamble Co 1.05% -9.4% 4.8% Consumer Staples Maximus Inc 0.25% 21.8% 49.4% Information Technology Top 10 Performing Stocks (by Quarter) Top 10 Performing Stocks (by Quarter) Russell 1000 Weight 1 -Qtr 1 -Year Sector Russell 2000 Weight 1 -Qtr 1 -Year Sector Return Return Return Return Pharmacyclics Inc 0.07% 109.3% 155.4% Health Care Gordman's Stores Inc 0.00% 204.0% 52.0% Consumer Discretionary Intercept Pharmaceuticals Inc 0.02% 80.8% - 14.5% Health Care Cellular Dynamics International Inc 0.01% 155.5% 10.0% Health Care Freescale Semiconductor Ltd 0.02% 61.6% 67.0% Information Technology Cytori Therapeutics Inc 0.01% 141.5% -56.3% Health Care Salix Pharmaceuticals Ltd 0.05% 50.3% 66.8% Health Care NII Holdings Inc 0.00% 135.1% - 96.3% Telecommunication Services Hospira Inc 0.07% 43.4% 103.1% Health Care Esperion Therapeutics Inc 0.03% 129.0% 512.4% Health Care Orbital ATK Inc 0.02% 41.8% 16.9% Industrials Egalet Corp 0.00% 127.2% -7.6% Health Care Exelis Inc 0.02% 39.6% 40.5% Industrials Ampio Pharmaceuticals Inc 0.02% 119.5% 18.6% Health Care 1. Twitter Inc 0.12% 39.6% 7.3% Information Technology Foundation Medicine Inc 0.04% 116.5% 48.6% Health Care Kraft Foods Group Inc 0.25% 39.0% 61.1% Consumer Staples Fairway Group Holdings Corp Class A 0.01% 114.9% -11.4% Consumer Staples Nu Skin Enterprises Inc Class A 0.02% 38.6% - 25.3% Consumer Staples ZIOPHARM Oncology Inc 0.05% 112.4% 135.2% Health Care Bottom 10 Performing Stocks (by Quarter) Bottom 10 Performing Stocks (by Quarter) 1 -Qtr 1 -Year 1 -Qtr 1 -Year i l', Russell 1000 Weight Sector Russell 2000 Weight Sector Return Return Return Return ^: Weight Watchers International Inc 0.00% - 71.9% - 66.0% Consumer Discretionary Corporate Resource Services Inc 0.00% -98.3% - 99.4% Industrials Ocwen Financial Corp 0.00% - 45.4% -78.9% Financials Dora! Financial Corp 0.00% - 98.0% -99.1% Financials Apollo Education Group Inc Class A 0.01% -44.5% -44.7% Consumer Discretionary BPZ Resources Inc 0.00% -90.9% -99.2% Energy zulily Inc Class A 0.00% - 44.5% -74.1% Consumer Discretionary Wet Seal Inc Class A 0.00% - 89.7% - 99.5% Consumer Discretionary Tidewater Inc 0.00% - 40.4% - 59.6% Energy Body Central Corp 0.00% -88.7% -98.9% Consumer Discretionary Stratasys Ltd 0.01% - 36.5% - 50.2% Information Technology Quicksilver Resources Inc 0.00% -87.6% - 99.1% Energy Peabody Energy Corp 0.01% - 36.4% - 69.3% Energy Allied Nevada Gold Corp 0.00% -87.4% - 97.4% Materials SanDisk Corp 0.06% - 34.8% -20.6% Information Technology FXCM Inc 0.01% -87.1% - 85.4% Financials Rayonier Advanced Materials Inc 0.00% -32.9% N/A Materials Speed Commerce Inc 0.00% - 79.3% -82.5% Information Technology Cliffs Natural Resources Inc 0.00% - 32.6% - 75.7% Materials Corinthian Colleges Inc 0.00% - 77.7% - 99.0% Consumer Discretionary Source: Morningstar Direct THE 5 (( BO GDAHN GROUP The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2015 Quarter Performance I ■USD ❑Local Currency • The year began with a modest sell -off in non -U.S. equities and an unexpected, and unusual, currency event as the Swiss National AC World x US (45) 3.6% 9.1% Bank announced the dissolution of the country's three -year peg to 4.0% the euro mid January. Later that month, the European Central Bank WORLD x US (22) 1 10.2% made the decision to begin a quantitative easing program to combat 5.0% slowing growth prospects throughout the region. Developed non- EAFE (21) I 11.0% U.S. equities began to surge, leading to the strongest month for the 3.6% Europe & ME (16) MSCI EAFE Index in over a year. I 11.7 °' 7.7% i • On a regional basis, stocks in Latin America turned in the worst Pacific (5) 9.5% quarterly performance in both local currency and USD terms for the Emerging Mkt (23) 2.3% ° second consecutive quarter. 1a.sr° EM EMEA (10) 2.0% • There were fewer negative returns within developed markets this 1 5.70/o quarter compared to the recent past, but within emerging markets, EM Asia (8) 5.3% negative returns were more common and generally more severe. 5.7% Denmark ( +16.7 %) was the top - performing developed country, EM Latin Amer (5) g 5% 1.3% while Singapore (1.9 %), New Zealand (1.5 %), and the UK (1.0 %) had the worst performance. Interestingly, Russia ( +18.6 %) was the - 10.0% -5.0% 0.0% 5.0% 10.0% 15.0% best performing emerging market, while Greece (- 29.3 %) was, by 1 - Year Performance I ■ USD ❑Local Currency far, the worst performer as the country faced possible bankruptcy. AC World x US (45) -0.6% ' • During the first quarter, USD appreciation once again created a 1 16.0% significant drag on returns for U.S. investors in most overseas WORLD x US (22) - 0.9 °xo 1 markets. The Brazilian real depreciated significantly versus the 1 17.3% USD during the quarter, leading to a large difference in returns EAFE (21) 0.5 %' 18.3/0 1 ° between local and USD returns in Latin American equities. Europe & ME (16) 4.3% 15.5% • Only two sectors ended the quarter in negative territory for developed non -U.S. stocks - Energy ( -4.7 %) and Utilities (- 4.8 %). Pacific (5) 7.7% 24.2 ° I On the opposite end of the spectrum, Health Care ( +9.9 %) and -. 0.8% Consumer Discretionary ( +8.4 %) led MSCI EAFE performance. For Emerging Mkt (23) I 11.3% the MSCI EM Index, Health Care ( +6.7 %) and Consumer -11.6% Discretionary (+4.1%) stocks performed strongly but were bested by EM EMEA (10 8.8% Information Technology ( +8.5 %) stocks. Materials (-3.1%) and 11.1% EM Asia (8) ° Utilities ( -2.1 %) stocks detracted the most. 14.6% EM Latin Amer (5) - 20.7% • Similar to U.S. indices, growth outperformed value across the 24 board, while, in general, small caps outperformed large caps. - 25.0% -20,0% - 15.0% -10 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source: MSCI Global Index Monitor (Returns are Gross) THE 6 BOGDAHN ` ~- . GROUP. The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2015 MSCI - EAFE Sector Weight Quarter Return 1 -Year Return MSCI -EAFE MSCI - ACWIxUS Quarter 1 - Year Country Weight Weight Return Return Consumer Discretionary 13.1% 8.4% 6.0% Japan 22.2% 15.9% 10.3% 12.4% r .............. c•,......, 11 n0i n 'VOL o my_ i i...•,..a v.....a...., 10 00i I e 00G -� n0A _c Fi °A • Similar to U.S. indices, growth outperformed value across the 2.4% board, while, in general, small caps outperformed large caps. rn 25.o% 20 0% 15 0% 10 0% 5.0% 0.0% 5.0% 10 0% 15.0% 20.0% 25.0% Source: MSCI Global Index Monitor (Return are Gross) � THE s EM Latin Amer (5) 1-20.7% L BOGDAHN . GROUP. The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2015 MSCI - EAFE Sector Weight Quarter Return 1 -Year Return MSCI -EAFE MSCI - ACWIxUS Quarter 1- Year 13.1% 8.4% 6.0% Country Weight Weight Return Return Consumer Discretiona ry Japan 22.2% 15.9% 10.3% 12.4% Consumer Staples 11.0% 4.7% 2.0% United Kingdom 19.8% 14.2% -1.0% -5.5% Energy 5.1% -4.7% -23.4% France 9.7% 7.0% 4.8% -7.4% Germany 9.5% 6.8% 8.4% -2.0% Financials 26.0% 4.9% -0.5% Switzerland 9.3% 6.6% 5.1% 0.7% Health Care 11.4% 9.9% 10.5% Australia 7.3% 5.2% 3.1% -5.8% Spain 3.6% 2.6% -0.6% -9.2% Industrials 12.7% 6.2% -2.1% Hong Kong 3.1% 2.3% 6.0% 15.3% Information Technology 4.9% 7.2% 7.2% Sweden 3.1% 2.2% 5.6% -4.2% Materials 7.5% 3.4% -8,0% Netherlands 2.7% 2.0% 4.9% 0.5% Italy 2.3% 1.7% 6.8% -15.2% Telecommunication Services 4.7% 2.5% 0.6% Denmark 1.7% 1.2% 16.7% 6.9% Utilities 3.6% -4.8% -7.3% Singapore 1.5% 1.0% -1.9% 2.0% Total 100.0% 5.0% 40.5% Belgium 1.3% 0.9% 6.0% 8.5% Finland 0.9% 0.6% 2.8% 3.3% MSCI - ACWIxUS Sector Weight Quarter Return 1 -Year Return Norway 0.6% 0.5% 2.4% -21.1% Israel 0.6% 0.4% 9.1% 13.7% Consumer Discretionary 11.8% 7.2% 5.3% Ireland 0.3% 0.2% 3.8% -6.7% Consumer Staples 9.9% 3.9% 1.9% Austria 0.2% 0.1% 3.2% -25.1% Portugal 0.2% 0.1% 7.3% - 39.1% Energy 6.9% 4.0% -22.7% New Zealand 0.2% 0.1% -1.5% -8.6% Financials 27.3% 2.3% 0.5% Total EAFE Countries 100.0% 71.7% 5.0% -0.5% Health Care 9.1% 10.6% 12.4% Canada 6.8% -5.9% -5.5% Total Developed Countries 78.5% 4.0% 41914 Industrials 11.1% 4.8% -1.5% China 5.0% 8.1% 24.3% Information Technology 7.8% 7.7% 11.4% Korea 3.2% 4.4% -4.9% Materials 7.6% 1.6% -11.4% Taiwan 2.8% 4.0% 13.2% South Africa 1.7% 3.3% 4.2% Telecommunication Services 5.1% 1.7% 1.9% India 1.6% 5.4% 20.7% Utilities 3.4% -4.5% -6.5% Brazil 1.6% - 14.6% - 28.4% Mexico 1.0% -1.9% -6.3% Total 100.0% 3.6% A.6% Russia 0.8% 18.6% -24.9% Malaysia 0.8% -1.6% -11.7% MSCI - Emerging Mkt Sector Weight Quarter Return 1 -Year Return Indonesia 0.6% 2.5% 7.5% Consumer Discretionary 9.4% 4.1% -1.1% Thailand 0.5% 2.5% 11.4% Consumer Staples 8.1% 2.0% -1.4% Turkey 0.3% 15.8% 4.3% Poland 0.3% -3.0% -19.0% Energy 8.0% 2.3% - 21.2% Philippines 0.3% 10.2% 26.2% Financials 28.5% -0.2% 5.7% Chile 0.3% 0.1% -10.1% Qatar 0.2% -3.3% -1.9% Health Care 2.4% 6.7% 25.6% Colombia 0.1% -19.1% -38.3% Industrials 6.8% 1.3% -1.3% United Arab Emirates 0.1% -5.3% -13.8% Information Technology 19.1% 8.5% 15.0% Peru 0.1% -6.0% -0.5% Greece 0.1% - 29.3% - 64.1% Materials 7.0% -2.1% -18.0% Egypt 0.1% 1.5% 20.2% Telecommunication Services 7.4% 1.5% 6.3% Czech Republic 0.0% -3.1% - 12.1% Utilities 3.3% -3.1% -3.1% Hungary 0.0% 14.0% -9.4% Total Emerging Countries 21.5% 2.3% 0.8% Total 100.0% 2.3% 0.8% Total ACWIxUS Countries 100.0% 3.6% -0.6% Source: MSCI Global Index Monitor (Returns are Gross in USD) 11.1 THE. 7 L., BOGDAHN GROUP. The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of March 31, 2015 Quarter Performance AAA (4.7) 1.4% • Domestic bond markets were positive during the first quarter of AA (5.8) 1 8% 2015 as broad U.S. fixed income indices moved in tandem with U.S. Treasuries throughout the period. The Barclays Aggregate A (7.3) 2.2% Index returned +1.6% with U.S. corporate bonds driving Baa (7.8) 2.3% performance relative to U.S. Treasury and mortgage backed U.S. High Yield (4.2) 2.5% securities. U.S. Treasury (5.7) 1.6% Investors were rewarded for taking on more credit risk with A and U.S. Mortgage (3.5) 1.1% • Baa credits directing investment grade performance for the quarter. U.S. Corporate IG (7.4) 1.1111111111.111 2.3% High yield credit outperformed investment grade with Ba and B U.S. TIPS (6.0) 1.4% credits outperforming Caa issues. Furthermore, since rate hikes are generally associated with an improving economic environment Aggregate (5.4) 1.6% and should the Fed begin to raise rates, it is plausible spreads Intermediate Agg (3.8) 1.3% could tighten further as company fundamentals strengthen. Global Agg x US (7.5) -4.6% • Due to the decline in interest rates along the yield curve, longer Multiverse (6.4) -1.9% . r dated issues outperformed short maturity issues. For example, the 6.0°io a.o °io 2.0°i° 0.0% z.o °i° a.o °io quarterly return on the 30 -Year Treasury was +5.1% versus a +2.6% return on the 10 -Year Treasury. 1 - Year Performance ▪ The domestic bond market dramatically outpaced the international AAA (4.7) 5.3% bond market, represented by the Barclays Global Aggregate ex AA (5.8) 5.9% U.S. Index, by +6.2 %. The performance differential was heavily A (7.3) , PU 7.0% influenced by the USD strengthening +6.6 %, with returns in local Baa (7.8) 6.9% currency far more attractive at +2.0 %. The European Central U.S. High Yield (4.2) 2.0% Bank's announcement of a quantitative easing program fueled an U.S. Treasury (5.7) 5.4°io ongoing rally in European core and peripheral country bonds. In fact, outside of the U.S., few central banks worldwide have U.S. Mortgage (3.5) 5.5% considered tightening monetary policies. U.S. Corporate IG (7.4) EMMEN.. 6.8% U.S. TIPS (6.0) 3.1% Aggregate (5.4) 5.7% Intermediate Agg (3.8) 4.2% Global Agg x US (7.5) -10 1% Multiverse (6.4) -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source. Barclays Capital Live o ft\ THE 8 C BOGDAHN GROUP - The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2015 a.00 I 1 - Year Trailing Market Rates `-- I Multiverse (6.4) I -3.8% VATOARa 1 . -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% THE Source: Barclays Capital Live 8 r BOGDAHN ` --� GROUP. The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2015 1 -Year Trailing Market Rates 4.00 • The yield curve in the U.S. continued to flatten during the first m Fed Funds Rate •TED Spread •3 -Month Libor quarter. Since prices and performance move in the opposite 3.50 BAAOAS • �10yrTreasury 10yrTIPS direction of yields, the long -end of the curve was the best performing maturity segment as 30 -year Treasuries returned +5.1% 3.00 - during the period. The yield on the 10 -year Treasury fell from 2.17% to 1.94% ending the quarter below 2.0 %. At the short end of the 2.50 - curve, 2 -year Treasuries fell from 0.67% to 0.56 %. 2.00 - • Since rising to more attractive yields in mid -to -late 2013, the yield 161_ curve has gradually flattened and interest rates have declined, 1.50 •_ particularly in longer -dated maturities. This resulted in positive returns over the past twelve months, especially in investment grade 1.00 - or better, intermediate term or longer securities. The expectation is that given strong economic growth, lower unemployment, the end of 0.50 - the Fed's QE program, and better housing numbers, interest rates will soon rise. However, the impact of foreign purchases and 0.00 generally benign inflation has been a natural headwind to rising Mar -14 Apr -14 May -14 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 rates. Treasury Yield Curve • Interest rates fluctuated considerably in the U.S. during the first 4.00 quarter of 2015. Improving economic data initially caused rates to - X6/30/2014 •9/30/2014 -- -12/31/2014 -0- 3/31/2015 - rise as investors speculated the Federal Reserve could begin 3.50 tightening monetary policy as early as June. However, based on Janet Yellen's comments in late March, and mixed economic 3.00 - /• reports near quarter -end, investor fears of imminent Fed policy • tightening in June were abated causing rates to fall. Despite the 2.50 - • • • volatility, rates ended the quarter lower with broad U.S. credit •' • indices posting solid gains. 2.00 - /• • • • • The European Central Bank announced a quantitative easing plan 1.50 - in response to below- target inflation figures. The 60 billion euro per • month bond buying program was larger than investors expected 1.00 - and was designed to revitalize the Eurozone economy and fight / • deflationary pressures. 0.50 - 0.00 - • • 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) THE 9 (�( BOGDAHN GROUP. 4 TH 10 (L-4: ` GROUP. The Market Environment The 2014 Bogdahn Client Survey • In an effort to better serve your needs, The Bogdahn Group is Please rate The Bogdahn Group on the following based ona scale of 1 — 10 conducting its annual client survey. (1 very poor and 10 Excellent): ION THE 10 if BOGDAHN ` -� GROUP. The Market Environment The 2014 Bogdahn Client Survey • In an effort to better serve your needs, The Bogdahn Group is Please rate The Bogdahn Group on the following based on a scale of 1 —10 conducting its annual client survey. (1 very poor and 10 Excellent): • We sincerely thank you for taking the time to fill out this survey. 0 Your consulting team's level of understanding of your Plan /Fund's unique The insights gained will help The Bogdahn Group continue to needs and objectives. improve and better serve you. Additionally, we use the information to evaluate our consultants and identify areas of © Your satisfaction with the accuracy, level of detail, and timeliness of your professional improvement. This survey is short and should take performance report. approximately five minutes to complete. The Bogdahn Group will keep all information provided completely confidential and will © Your consulting team's ability to effectively communicate the information in never release information to third parties. This survey is for the performance report. internal use only. O Your consulting team's ability to effectively communicate investment • If you do not receive an individual e-mail from the survey insights beyond those in the performance report. company, please participate by directing your browser to https:// www. surveymonkey .com /s /TBGSurvey2014. © Effort of your consulting team to offer proactive suggestions and /or innovative solutions to enhance your portfolio goals and objectives. • If you have any questions about the survey, please contact Tala Chin at (863) 877 -0323 or clientsurvey a(�bogdahngroup.com. 6 The outcomes /satisfaction of your consultants suggestions and /or investment solutions. • Thank you again for your help. We look forward to reviewing your feedback. O The timeliness and effectiveness of your consulting team's responses to regular inquiries. (Our firm policy is to reply to all inquiries within 24 hours.) fl Your satisfaction with your fee structure relative to the value delivered. O Your overall satisfaction with The Bogdahn Group's services, professional staff, and resources. 10 Please select your preferred methods(s) to receive performance and research reports: - Emailed (PDF) in advance of the meeting - Hard copies mailed in advance of the meeting - Hard copies delivered at meeting - Electronic "Portal" access through Bogdahn - Alternative electronic format (CDs, Flash Drive, Tablet) - Other 11.8 THE. The Bogdahn Group Client Survey link will be live through June 15, 2015. 11 r BOGDAHN GROUP. 1 Asset Allocation Summary Total Fund -- __ As of March 31. 2015 Asset Allocation By Segment as of Asset Allocation By Segment as of December 31, 2014: $83,696,994 March 31, 2015: $84,888,141 ,,0 4 . .„:. Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 45,265,849 54.1 • Domestic Equity 45,916,435 54.1 a International Equity 10,285,331 12.3 w International Equity 10,790,778 12.7 • Domestic Fixed Income 8,833,092 10.6 • Domestic Fixed Income 8,800,010 10.4 Global Fixed Income 7,585,629 9.1 Global Fixed Income 7,723,889 9.1 • Other Fixed Income 3,281,735 3.9 • Other Fixed Income 3,015,496 3.6 • Real Estate 7,245,674 8.7 • Real Estate 7,362,765 8.7 Cash 1,199,683 1.4 Cash 1,278,767 1.5 THE 12 ( BOGDAHN ` — � GROUP. Asset Allocation Summary Total Fund As of March 31. 2015 Asset Allocation By Manager as of Asset Allocation By Manager as of `- December 31, 2014 : $83,696,994 March 31, 2015 : $84,888,141 • vtnei rixeu MLA/111e - • Real Estate 7,245,674 8.7 • Real Estate 7,362,765 8.7 Cash 1,199,683 1.4 Cash 1,278,767 1.5 THE 12 (� BOGDAHN `° GROUP. Asset Allocation Summary Total Fund As of March 31. 2015 Asset Allocation By Manager as of Asset Allocation By Manager as of December 31, 2014: $83,696,994 March 31, 2015: $84,888,141 4 r 4E ; . � "14 ' 4' Allocation Allocation Market Value Allocation Market Value Allocation • Vanguard Mid -Cap Index Fund (VMCIX) 13,987,451 16.7 • Vanguard Mid -Cap Index Fund (VMCIX) 14,496,866 17.1 P4 Anchor All Cap Value Equity 10,972,169 13.1 • Anchor All Cap Value Equity 10,972,688 12.9 • Vanguard 500 Index Signal ( VFIAX) 10,688,544 12.8 ■ Vanguard 500 Index Signal (VFIAX) 10,595,994 12.5 Manning & Napier Overseas (EXOSX) 10,285,331 12.3 • DSM Large Cap Growth 10,514,519 12.4 • DSM Large Cap Growth 10,112,333 12.1 • Schroders Core Fixed Income 7,834,907 9.2 • Schroders Core Fixed Income 7,916,161 9.5 • WCM International Growth Fund (WCMIX) 5,401,350 6.4 Intercontinental 4,661,986 5.6 American Funds EuroPacific Gr R6 (RERGX) 5,389,428 6.3 PIMCO Diversified Income Fund (PDIIX) 3,832,746 4.6 Intercontinental 4,715,599 5.6 Templeton Global Bond Fund (FBNRX) 3,752,883 4.5 PIMCO Diversified Income Fund (PDIIX) 3,961,428 4.7 ASB RE 2,583,688 3.1 Templeton Global Bond Fund ( FBNRX) 3,762,461 4.4 • LBC Credit Partners III 2,081,427 2.5 ASB RE 2,647,166 3.1 Crescent Direct Lending Fund 1,200,308 1.4 • LBC Credit Partners III 1,727,245 2.0 • Schroders TIPS 1,145,165 1.4 ' Crescent Direct Lending Fund 1,288,251 1.5 • Receipt & Disbursement 324,780 0.4 • Schroders TIPS 1,161,154 1.4 • Mutual Fund Cash 152,023 0.2 ■ Receipt & Disbursement 287,611 0.3 American Funds EuroPacific Gr R6 (RERGX) - 0.0 ■ Mutual Fund Cash 131,473 0.2 • WCM International Growth Fund (WCMIX) - 0.0 Manning & Napier Overseas (EXOSX) - 0.0 THE 13 BOGDAHN GROUP. 14 Asset Allocation vs. Target Allocation Total Fund As of March 31, 2015 Asset Allocation versus Target Allocation Vanguard 500 Index Signal (VIFSX) -2.5 f)SM 1 arm. ran C;rnwth , 4% 14 Asset Allocation vs. Target Allocation Total Fund As of March 31, 2015 Asset Allocation versus Target Allocation Vanguard 500 Index Signal (VIFSX) -2.5 DSM Large Cap Growth 2.4% Anchor All Cap Value Equity 2.9% Vanguard Mid -Cap Index Fund (VMCIX) 7.1% WCM International Growth Fund (WCMIX) -1.10/0 American Funds EuroPacific Gr R6 (RERGX) -1.20.0= Schroders Core Fixed Income -0.e nA_ Schroders TIPS -3.6 ° PIMCO Diversified Income Fund (PDIIX) -1.2% Templeton Global Bond Fund (FBNRX) _0.9% Intercontinental IIIII0.6% ASB RE -1.9% Crescent Direct Lending Fund -2.5 ° LBC Credit Partners 111 -2.0 % Receipt & Disbursement Illo.3i Mutual Fund Cash 10.2% -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0% El Allocation Differences Market Value Allocation ( %) Target ( %) Vanguard 500 Index Signal ( VIFSX) 10,595,994 12.5 15.0 1 DSM Large Cap Growth 10,514,519 12.4 10.0 Anchor All Cap Value Equity 10,972,688 12.9 10.0 Vanguard Mid -Cap Index Fund (VMCIX) 14,496,866 17.1 10.0 WCM International Growth Fund (WCMIX) 5,401,350 6.4 7.5 American Funds EuroPacific Gr R6 (RERGX) 5,389,428 6.3 7.5 Schroders Core Fixed Income 7,834,907 9.2 10.0 Schroders TIPS 1,161,154 1.4 5.0 PIMCO Diversified Income Fund (PDIIX) 3,961,428 4.7 3.5 Templeton Global Bond Fund (FBNRX) 3,762,461 4.4 3.5 Intercontinental 4,715,599 5.6 5.0 ASB RE 2,647,166 3.1 5.0 Crescent Direct Lending Fund 1,288,251 1.5 4.0 LBC Credit Partners HP 1,727,245 2.0 4.0 Receipt & Disbursement 287,611 0.3 0.0 Mutual Fund Cash 131,473 0.2 0.0 Total Fund 84,888,141 100.0 100.0 THE 15 c BOGDAHN GROUP Asset Allocation History by Portfolio Total Fund As of March 31, 2015 Asset Allocation Attributes Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 ($) % ($) % ($) % ($) % ($) % Total Equity 57,370,846 67.58 56,045,827 66.96 51,774,390 66.22 50,880,364 64.56 50,252,661 65.16 Total Domestic Equity 46,580,067 54.87 45,760,496 54.67 40,977,949 52.41 38,929,316 49.39 38,676,429 50.15 Anchor All Cap Value Equity 10,972,688 12.93 10,972,169 13.11 10,507,535 13.44 10,585,719 13.43 10,027,645 13.00 Vanguard 500 Index Signal (VFIAX) 10,595,994 12.48 10,688,544 12.77 7,365,174 9.42 5,812,043 7.37 6,898,537 8.95 DSM Large Cap Growth 10,514,519 12.39 10,112,333 12.08 9,334,715 11.94 9,104,731 11.55 8,902,523 11.54 Vanguard Mid -Cap Index Fund (VMCIX) 14,496,866 17.08 13,987,451 16.71 13,770,525 17.61 13,426,823 17.04 12,847,724 16.66 Total International Equity 10,790,778 12.71 10,285,331 12.29 10,796,441 13.81 11,951,048 15.16 11,576,232 15.01 Manning & Napier Overseas (EXOSX) - 0.00 10,285,331 12.29 10,796,441 13.81 11,951,048 15.16 11,576,232 15.01 American Funds EuroPacific Gr R6 (RERGX) 5,389,428 6.35 - 0.00 - 0.00 - 0.00 - 0.00 WCM International Growth Fund (WCMIX) 5,401,350 6.36 - 0.00 - 0.00 - 0.00 - 0.00 Total Fixed Income 19,735,447 23.25 19,928,690 23.81 18,616,809 23.81 18,596,391 23.60 17,893,460 23.20 Total Domestic Fixed Income 8,996,061 10.60 9,061,325 10.83 9,102,952 11.64 9,267,930 11.76 10,367,187 13.44 Schroders Core Fixed Income 7,834,907 9.23 7,916,161 9.46 7,944,675 10.16 8,086,977 10.26 9,220,064 11.96 Schroders TIPS 1,161,154 1.37 1,145,165 1.37 1,158,277 1.48 1,180,953 1.50 1,147,123 1.49 Total Global Fixed Income 7,723,889 9.10 7,585,629 9.06 7,704,268 9.85 7,785,312 9.88 7,526,274 9.76 PIMCO Diversified Income Fund (PDIIX) 3,961,428 4.67 3,832,746 4.58 3,890,191 4.98 3,974,277 5.04 3,814,636 4.95 Templeton Global Bond Fund (FBNRX) 3,762,461 4.43 3,752,883 4.48 3,814,078 4.88 3,811,036 4.84 3,711,637 4.81 Total Real Estate 7,362,765 8.67 7,245,674 8.66 6,993,002 8.94 6,752,216 8.57 6,602,912 8.56 Intercontinental 4,715,599 5.56 4,661,986 5.57 4,491,994 5.75 4,336,329 5.50 4,242,241 5.50 ASB RE 2,647,166 3.12 2,583,688 3.09 2,501,008 3.20 2,415,887 3.07 2,360,671 3.06 Princeton Futures LP - 0.00 - 0.00 - 0.00 - 0.00 2,178,567 2.82 Total Non -Core Fixed Income 3,015,496 3.55 3,281,735 3.92 1,809,589 2.31 1,543,149 1.96 - 0.00 LBC Credit Partners III 1,727,245 2.03 2,081,427 2.49 1,809,589 2.31 1,543,149 1.96 - 0.00 Crescent Direct Lending Fund 1,288,251 1.52 1,200,308 1.43 - 0.00 - 0.00 - 0.00 Cash Receipt & Disbursement 287,611 0.34 324,780 0.39 774,065 0.99 2,394,991 3.04 156,403 0.20 Mutual Fund Cash 131,473 0.15 152,023 0.18 26,356 0.03 189,702 0.24 34,155 0.04 Boynton Beach Firefighters' Total Fund 84,888,141 100.00 83,696,994 100.00 78,184,621 100.00 78,813,664 100.00 77,118,157 100.00 THE 16 r jp , BOGDAHN GROUP. Asset Allocation History by Segment Total Fund October 1, 2007 To March 31, 2015 Asset Allocation Attributes 100.0 A Boynton Beach Firefighters' Total Fund 84,888,141 100.00 83,696,994 ivu.uu - THE BOGDAHN 16 -� GROUP. Asset Allocation History by Segment Total Fund October 1, 2007 To March 31, 2015 Asset Allocation Attributes 100.0 90.0 80.0 70.0 60.0 C y 50.0 40.0 30.0 20.0 10.0 0.0 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 II Domestic Equity Ei International Equity Domestic Fixed Income Global Fixed Income II Other Fixed Income • Real Estate Alternative Investment Cash THE. 17 r BOGDAHN GROUP. Plan Sponsor TF Asset Allocation Total Fund Vs. All Public Plans -Total Fund As of March 31, 2015 68.0 60.0 0 52.0 44.0 4 36.0 0 ie 280 � , o 20.0 y , i , . ... a at.*" 12.0 • • • 4.0 IIII mmaimmi -4.0 -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash • Total Fund 54.87 (10) 12.71 (77) 10.60 (99) 9.10 (6) 3.55 (83) 8.67 (31) 0.49 (79) 5th Percentile 57.77 28.50 45.88 9.16 42.66 12.77 6.40 1st Quartile 49.94 20.55 33.76 4.99 19.26 9.26 2.17 Median 42.60 15.13 27.25 4.52 11.30 5.86 1.19 3rd Quartile 31.28 13.11 21.80 3.74 4.75 4.60 0.58 95th Percentile 19.76 8.43 13.99 0.59 1.57 2.32 0.05 THE 1 BOGDAHN `-_ GROUP. Median 21.80 3.74 4.75 "'C° 3rd Quartile 31.28 13.11 2 32 0.05 95th Percentile 19.76 8.43 13'99 0.59 1.57 THE BOGDAHN ei 18 `- - " GROUP. THE 19 t BOGDAHN ` -of GROUP i Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending March 31, 2015 Financial Reconciliation Quarter to Date Market Value Net Contributions Distributions Management Other Return On Market Value 01/01/2015 Transfers Fees Expenses Investment 03/31/2015 Total Equity 56,045,827 - 280,232 - - - -2,107 1,607,357 57,370,846 Total Domestic Equity 45,760,496 - 280,232 - - - -2,107 1,101,910 46,580,067 Anchor All Cap Value Equity 10,972,169 - - - - -1,095 1,615 10,972,688 Vanguard 500 Index Signal (VFIAX) 10,688,544 - 192,289 - - - - 99,739 10,595,994 DSM Large Cap Growth 10,112,333 - - - - -1,011 403,197 10,514,519 Vanguard Mid -Cap Index Fund (VMCIX) 13,987,451 - 87,943 - - - - 597,359 14,496,866 Total International Equity 10,285,331 - - - - - 505,447 10,790,778 Manning & Napier Overseas (EXOSX) 10,285,331 - 10,670,852 - - - - 385,521 - American Funds EuroPacific Gr R6 (RERGX) - 5,335,426 - - - - 54,002 5,389,428 WCM International Growth Fund (WCMIX) - 5,335,426 - - - - 65,924 5,401,350 Total Fixed Income 19,928,690 - 478,193 - - - -899 285,849 19,735,447 Total Domestic Fixed Income 9,061,325 - 208,580 - - - -899 144,215 8,996,061 Schroders Core Fixed Income 7,916,161 - 208,580 - - - -785 128,112 7,834,907 Schroders TIPS 1,145,165 - - - - -114 16,103 1,161,154 Total Global Fixed Income 7,585,629 - - - - - 138,260 7,723,889 PIMCO Diversified Income Fund (PDIIX) 3,832,746 - - - - - 128,682 3,961,428 Templeton Global Bond Fund (FBNRX) 3,752,883 - - - - - 9,578 3,762,461 Total Real Estate 7,245,674 - - - -8,074 - 125,164 7,362,765 Intercontinental 4,661,986 - - - - - 53,613 4,715,599 ASB RE 2,583,688 - - - -8,074 - 71,552 2,647,166 Total Non -Core Fixed Income 3,281,735 - 269,613 - - - - 3,374 3,015,496 LBC Credit Partners III 2,081,427 - 357,556 - - - - 3,374 1,727,245 Crescent Direct Lending Fund 1,200,308 87,943 - - - - - 1,288,251 Cash Receipt & Disbursement 324,780 774,717 335,741 - 1,146,805 - -830 9 287,611 Mutual Fund Cash 152,023 - 16,292 - - -4,268 - 9 131,473 Boynton Beach Firefighters' Total Fund 83,696,994 - 335,741 - 1,146,805 - 12,342 -3,837 2,018,389 84,888,141 THE 20 � BOGDAHN -� GROUP Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To March 31, 2015 Financial Reconciliation Fiscal Year to Date Market Value Net Contributions Distributions Management Other Return On Market Value 10/01/2014 Transfers Fees Expenses Investment 03/31/2015 ININ THE 20 C BOGDAHN GROUP. Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To March 31, 2015 Financial Reconciliation Fiscal Year to Date Market Value Net Contributions Distributions Management Other Return On Market Value 10/01/2014 Transfers Fees Expenses Investment 03/31/2015 Total Equity 51,774,390 1,846,843 - - - -4,090 3,753,703 57,370,846 Total Domestic Equity 40,977,949 1,846,843 - - - -4,090 3,759,365 46,580,067 Anchor All Cap Value Equity 10,507,535 - - - - -2,145 467,299 10,972,688 Vanguard 500 Index Signal (VFIAX) 7,365,174 2,615,738 - - - - 615,082 10,595,994 DSM Large Cap Growth 9,334,715 - - - - -1,945 1,181,748 10,514,519 Vanguard Mid -Cap Index Fund (VMCIX) 13,770,525 - 768,895 - - - - 1,495,236 14,496,866 Total International Equity 10,796,441 - - - - - -5,662 10,790,778 Manning & Napier Overseas (EXOSX) 10,796,441 - 10,670,852 - - - - - 125,588 - American Funds EuroPacific Gr R6 (RERGX) - 5,335,426 - - - - 54,002 5,389,428 WCM International Growth Fund (WCMIX) - 5,335,426 - - - - 65,924 5,401,350 Total Fixed Income 18,616,809 837,173 - - - -1,804 283,268 19,735,447 Total Domestic Fixed Income 9,102,952 - 340,310 - - - -1,804 235,223 8,996,061 Schroders Core Fixed Income 7,944,675 - 340,310 - - - -1,574 232,117 7,834,907 Schroders TIPS 1,158,277 - - - - -230 3,106 1,161,154 Total Global Fixed Income 7,704,268 - - - - - 19,621 7,723,889 PIMCO Diversified Income Fund (PDIIX) 3,890,191 - - - - - 71,238 3,961,428 Templeton Global Bond Fund (FBNRX) 3,814,078 - - - - - - 51,617 3,762,461 Total Real Estate 6,993,002 - - - - 61,803 - 431,566 7,362,765 Intercontinental 4,491,994 - - - - 45,915 - 269,520 4,715,599 ASB RE 2,501,008 - - - - 15,888 - 162,046 2,647,166 Total Non -Core Fixed Income 1,809,589 1,177,484 - - - - 28,424 3,015,496 LBC Credit Partners III 1,809,589 - 110,767 - - - - 28,424 1,727,245 Crescent Direct Lending Fund - 1,288,251 - - - - - 1,288,251 Cash Receipt & Disbursement 774,065 - 2,797,354 4,596,077 - 2,283,500 - -1,711 34 287,611 Mutual Fund Cash 26,356 113,338 - - -4,268 -3,965 11 131,473 Boynton Beach Firefighters' Total Fund 78,184,621 - 4,596,077 - 2,283,500 - 66,071 - 11,569 4,468,583 84,888,141 THE 21 (r BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of March 31, 2015 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 2.41 5.44 7.90 10.30 9.24 5.21 01/01/2002 Total Fund Policy 2.15 4.57 8.05 10.33 10.17 5.78 Difference 0.26 0.87 -0.15 -0.03 -0.93 -0.57 Total Fund (Gross) 2.43 (52) 5.52 (26) 8.15 (31) 10.67 (29) 9.68 (45) 5.42 (96) 01/01/2002 Total Fund Policy 2.15 (74) 4.57 (55) 8.05 (33) 10.33 (39) 10.17 (23) 5.78 (86) Difference 0.28 0.95 0.10 0.34 -0.49 -0.36 I All Public Plans -Total Fund Median 2.44 4.71 7.28 10.03 9.51 6.56 Total Equity 2.86 6.96 9.05 14.24 11.94 3.70 10/01/2007 Total Equity Policy 2.25 5.25 9.04 14.04 12.35 5.12 Difference 0.61 1.71 0.01 0.20 -0.41 -1.42 Total Domestic Equity 2.42 (53) 8.77 (29) 13.78 (23) 16.94 (29) 14.45 (39) 5.80 (59) 10/01/2007 Total Domestic Equity Policy 1.80 (64) 7.13 (51) 12.37 (35) 16.43 (36) 14.71 (32) 6.79 (38) Difference 0.62 1.64 1.41 0.51 -0.26 -0.99 IM U.S. All Cap Equity (SA +CF +MF) Median 2.51 7.15 11.15 15.57 13.82 6.23 Total International Equity 4.90 (50) -0.06 (73) -6.80 (97) 5.29 (97) 3.83 (94) -4.34 (100) 10/01/2007 Total International Equity Policy 3.59 (82) -0.36 (79) -0.57 (40) 6.89 (75) 5.29 (68) -0.27 (46) Difference 1.31 0.30 -6.23 -1.60 -1.46 -4.07 IM International Multi -Cap Core Equity (MF) Median 4.86 1.14 -1.09 8.28 6.00 -0.52 Total Fixed Income 1.45 (58) 1.47 (94) 3.41 (79) 3.38 (21) 4.28 (28) 5.05 (39) 10/01/2007 Total Fixed Income Policy 1.34 (78) 2.35 (60) 4.06 (39) 2.12 (88) 3.74 (63) 4.49 (84) Difference 0.11 -0.88 -0.65 1.26 0.54 0.56 IM U.S. Intermediate Duration (SA +CF) Median 1.47 2.40 3.87 2.74 3.90 4.89 Total Domestic Fixed Income 1.61 (72) 2.62 (97) 4.28 (97) 2.78 (96) 3.99 (98) 4.86 (89) 10/01/2007 Total Domestic Fixed Income Policy 1.34 (99) 2.35 (99) 4.06 (97) 2.12 (100) 3.74 (100) 4.49 (96) Difference 0.27 0.27 0.22 0.66 0.25 0.37 IM U.S Broad Market Core Fixed Income (SA +CF) Median 1.73 3.47 5.90 3.63 4.93 5.59 Total Global Fixed Income 1.82 (14) 0.25 (31) 2.63 (24) 4.59 (12) N/A 4.97 (14) 03/01/2011 BofA Merrill Lynch Global Broad Market Index -1.70 (85) -2.33 (70) -2.81 (79) 0.09 (75) 2.53 (61) 1.50 (66) Difference 3.52 2.58 5.44 4.50 N/A 3.47 IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 2.24 Total Non -Core Fixed Income (Composite) 0.00 N/A N/A N/A N/A N/A 12/01/2014 Credit Suisse Leveraged Loan Index 2.07 1.82 2.95 5.40 5.39 1.06 Difference -2.07 N/A N/A N/A N/A N/A Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst L.........- BO GDAH N 22 GROUP. Comparative Performance Trailing Returns Total Fund As of March 31, 2015 " 4 ;� -•' QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date '-',;1,,, Total Real Estate 1.73 (100) 6.18 (79) 12.98 (63) 13.68 (52) 12.83 (89) 13.07 (N /A) 05/01/2010 Total Real Estate Policy 3.28 (55) 6.49 (70) 13.21 (62) 12.41 (68) 14.37 (73) 14.63 (N /A) Returns for periods greater than one year are annualized. Retums are expressed as percentages. ^ \ THE Parenthesized number represents pertinent peer group ranking 1 -100, best to worst � B O GDAH N 22 GROUP Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Real Estate 1.73 (100) 6.18 (79) 12.98 (63) 13.68 (52) 12.83 (89) 13.07 (N /A) 05/01/2010 Total Real Estate Policy 3.28 (55) 6.49 (70) 13.21 (62) 12.41 (68) 14.37 (73) 14.63 (N /A) Difference -1.55 -0.31 -0.23 1.27 -1.54 -1.56 IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 6.95 14.14 13.78 15.76 N/A Returns for periods greater than one year are annualized. Retums are expressed as percentages. T , Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 23 ( BOGDAHN ` ~� GROUP 1 Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Equity Anchor All Cap Value Equity 0.01 (77) 4.45 (66) 9.47 (47) 16.74 (44) 14.82 (39) 16.37 (52) 08/01 /2009 Russell 3000 Value Index -0.51 (86) 4.77 (63) 8.94 (52) 16.30 (50) 13.66 (63) 15.95 (61) Difference 0.52 -0.32 0.53 0.44 1.16 0.42 IM U.S. All Cap Value Equity (SA +CF) Median 1.40 5.76 9.21 16.24 14.45 16.65 Vanguard 500 Index Signal (VFIAX) 0.95 (2) 5.97 (1) 12.74 (1) 16.07 (5) 14.39 (5) 6.92 (6) 12/01/2007 S &P 500 Index 0.95 (2) 5.93 (2) 12.73 (1) 16.11 (1) 14.47 (1) 6.97 (3) Difference 0.00 0.04 0.01 -0.04 -0.08 -0.05 IM S &P 500 Index (MF) Median 0.84 5.69 12.20 15.59 13.91 6.49 DSM Large Cap Growth 3.99 (49) 12.66 (10) 18.15 (23) 17.67 (25) 17.48 (12) 16.81 (45) 11/01/2008 Russell 1000 Growth Index 3.84 (52) 8.81 (58) 16.09 (42) 16.34 (48) 15.63 (45) 17.29 (35) Difference 0.15 3.85 2.06 1.33 1.85 -0.48 IM U.S. Large Cap Growth Equity (SA +CF) Median 3.93 9.21 15.13 16.20 15.29 16.61 Vanguard Mid -Cap Index Fund (VMCIX) 4.28 (37) 11.09 (34) 14.77 (10) N/A N/A 20.52 (16) 07/01/2013 CRSP U.S. Mid Cap TR Index 4.32 (35) 11.25 (31) 14.95 (8) 18.18 (16) 16.46 (7) 20.67 (14) Difference -0.04 -0.16 -0.18 N/A N/A -0.15 IM U.S. Mid Cap Core Equity (MF) Median 3.68 9.76 10.49 16.13 14.04 17.45 • International Equity WCM International Growth Fund (WCMIX) N/A N/A N/A N/A N/A N/A 04/01/2015 MSCI AC World ex USA 3.59 (74) -0.36 (89) -0.57 (78) 6.89 (60) 5.29 (76) N/A Difference N/A N/A N/A N/A N/A N/A • IM International Large Cap Growth Equity (MF) Median 5.46 3.03 1.63 7.99 6.21 N/A American Funds EuroPacific Gr R6 (RERGX) N/A N/A N/A N/A N/A N/A 04/01/2015 MSCI AC World ex USA 3.59 (74) -0.36 (89) -0.57 (78) 6.89 (60) 5.29 (76) N/A Difference N/A N/A N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 5.46 3.03 1.63 7.99 6.21 N/A I '' • LR l �n 4 Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE r �� Parenthesized number represents pertinent peer group ranking. 1 -100, best to worst - BOGDAHN }, ` 24 `--- GROUP. Li Comparative Performance Trailing Returns Total Fund f As of March 31, 2015 ,r- QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Fixed Income Returns for periods greater than one year are annualized. Returns are expressed as percentages. �� THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst BOGDAHN 24 GROUP. Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date • Domestic Fixed Income Schroders Core Fixed Income 1.64 (21) 2.97 (14) 4.75 (15) 3.22 (25) 4.10 (39) 4.99 (41) 04/01/2007 Schroders Core Fixed Income Policy 1.32 (80) 2.54 (32) 4.24 (31) 2.41 (77) 3.62 (74) 4.56 (83) Difference 0.32 0.43 0.51 0.81 0.48 0.43 IM U.S. Intermediate Duration (SA +CF) Median 1.47 2.40 3.87 2.74 3.90 4.87 Schroders TIPS 1.41 0.27 1.26 0.01 3.09 3.80 11/01/2007 Barclays U.S. Treasury: U.S. TIPS Index 1.42 1.40 3.11 0.63 4.29 4.65 , Difference -0.01 -1.13 -1.85 -0.62 -1.20 -0.85 Barclays U.S. TIPS 1 -10 Year 1.20 0.19 1.08 -0.05 2.85 3.77 Difference 0.21 0.08 0.18 0.06 0.24 0.03 Global Fixed Income PIMCO Diversified Income Fund (PDIIX) 3.36 (1) 1.83 (19) 3.85 (17) 5.08 (9) N/A 5.61 (9) 03/01/2011 Barclays Global Credit (Hedged) 2.23 (6) 3.32 (9) 6.31 (8) 5.78 (5) 6.15 (13) 6.09 (6) Difference 1.13 -1.49 -2.46 -0.70 N/A -0.48 IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 2.24 Templeton Global Bond Fund (FBNRX) 0.26 (44) -1.35 (51) 1.37 (35) 4.26 (14) N/A 4.44 (20) 03/01/2011 Citigroup World Government Bond -2.51 (98) -3.97 (89) -5.50 (92) -1.64 (95) 1.42 (91) 0.08 (90) Difference 2.77 2.62 6.87 5.90 N/A 4.36 IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 2.24 Total Non -Core Fixed Income LBC Credit Partners III 0.00 1.34 N/A N/A N/A 4.47 07/01/2014 Credit Suisse Leveraged Loan Index 2.07 1.82 2.95 5.40 5.39 1.48 Difference -2.07 -0.48 N/A N/A N/A 2.99 Crescent Direct Lending Fund 0.00 0.00 N/A N/A N/A 0.00 11/01/2014 Credit Suisse Leveraged Loan Index 2.07 1.82 2.95 5.40 5.39 1.52 Difference -2.07 -1.82 N/A N/A N/A -1.52 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst � � THE. 25 BOGDAHN N. GROUP. Comparative Performance Trailing Returns Total Fund As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Real Estate Intercontinental 1.15 (100) 6.01 (83) 12.69 (74) 14.30 (36) 13.20 (83) 13.20 (83) 04/01/2010 NCREIF ODCE 3.28 (55) 6.49 (70) 13.21 (62) 12.41 (68) 14.37 (73) 14.37 (73) Difference -2.13 -0.48 -0.52 1.89 -1.17 -1.17 IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 6.95 14.14 13.78 15.76 15.76 ASB RE 2.77 (92) 6.49 (70) 13.51 (59) N/A N/A 13.10 (69) 10/01/2012 NCREIF Fund ODCE 3.28 (55) 6.49 (70) 13.21 (62) 12.41 (68) 14.37 (73) 12.62 (74) Difference -0.51 0.00 0.30 N/A N/A 0.48 IM U.S. Open End Private Real Estate (SA +CF) Median 3.42 6.95 14.14 13.78 15.76 13.97 I i i Returns for periods greater than one year are annualized. Retums are expressed as percentages. 11.114N THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst �� BOGDAHN , 1r 1 11111111111111111 . IMF GROUP. 26 -- l Returns for periods greater than one year are annualized. Retums are expressed as percentages. 1 . 1 1 1 . ' Parenthesized number represents pertinent peer group ranking 1 -100, best to worst 26 1 BOGDAHN GROUP. THE 27 / BOGDAHN GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Comparative Performance Fiscal Year Returns Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Total Fund (Net) 5.44 10.29 13.19 16.85 -0.65 8.86 0.39 12.60 5.63 -16.85 Total Fund Policy 4.57 10.72 12.75 18.46 2.16 10.00 0.55 12.37 8.29 -12.79 Difference 0.87 -0.43 0.44 -1.61 -2.81 -1.14 -0.16 0.23 -2.66 -4.06 Total Fund (Gross) 5.52 (26) 10.56 (41) 13.73 (30) 17.43 (57) -0.15 (61) 9.37 (65) 0.75 (62) 12.71 (76) 5.63 (95) -16.85 (91) Total Fund Policy 4.57 (55) 10.72 (37) 12.75 (47) 18.46 (38) 2.16 (16) 10.00 (48) 0.55 (65) 12.37 (81) 8.29 (55) -12.79 (41) Difference 0.95 -0.16 0.98 -1.03 -2.31 -0.63 0.20 0.34 -2.66 -4.06 All Public Plans -Total Fund Median 4.71 10.10 12.52 17.89 0.32 9.89 1.55 14.39 8.57 -13.57 Total Equity 6.96 12.85 21.99 24.13 -4.84 11.41 -7.70 N/A N/A -26.59 Total Equity Policy 5.25 14.53 20.52 26.34 -2.27 10.41 -4.64 16.02 10.79 -23.02 Difference 1.71 -1.68 1.47 -2.21 -2.57 1.00 -3.06 N/A N/A -3.57 Total Domestic Equity 8.77 (29) 17.07 (33) 22.27 (59) 27.05 (48) -1.98 (54) 13.08 (28) -8.26 (77) N/A N/A -24.14 (57) Total Domestic Equity Policy 7.13 (51) 17.76 (25) 21.60 (64) 30.20 (20) 0.55 (31) 10.96 (44) -6.15 (64) 15.89 (63) 10.79 (28) -21.77 (34) 1 Difference 1.64 -0.69 0.67 -3.15 -2.53 2.12 -2.11 N/A N/A -2.37 IM U.S. All Cap Equity (SA +CF +MF) Median 7.15 15.36 23.39 26.71 -1.71 10.30 -4.10 17.39 8.65 -23.38 Total International Equity -0.06 (73) -0.43 (95) 20.93 (50) 15.82 (37) -13.23 (83) 2.52 (80) -4.87 (90) N/A N/A -39.20 (98) Total International Equity Policy -0.36 (79) 5.22 (29) 16.98 (82) 15.04 (50) -10.42 (44) 6.90 (27) 3.80 (35) 25.38 (41) 19.65 (28) -30.13 (42) Difference 0.30 -5.65 3.95 0.78 -2.81 -4.38 -8.67 N/A N/A -9.07 IM International Multi -Cap Core Equity (MF) Median 1.14 4.27 20.90 15.01 -10.95 4.66 1.83 24.89 18.63 -30.97 Total Fixed Income 1.47 4.40 0.12 8.83 1.60 8.25 13.29 N/A N/A 0.63 Total Fixed Income Policy 2.35 2.55 -1.62 5.11 5.16 7.78 9.19 5.31 3.54 3.52 Difference -0.88 1.85 1.74 3.72 -3.56 0.47 4.10 N/A N/A -2.89 Total Domestic Fixed Income 2.62 (97) 3.13 (97) -0.67 (22) 5.88 (77) 3.91 (94) 8.25 (84) 13.29 (33) N/A N/A 0.63 (67) Total Domestic Fixed Income Policy 2.35 (99) 2.55 (99) -1.62 (76) 5.11 (93) 5.16 (59) 7.78 (94) 9.19 (90) 5.31 (34) 3.54 (87) 3.52 (36) Difference 0.27 0.58 0.95 0.77 -1.25 0.47 4.10 N/A N/A -2.89 IM U.S. Broad Market Core Fixed Income (SA +CF) Median 3.47 4.50 -1.28 6.60 5.26 9.20 12.28 5.15 3.86 2.55 Total Global Fixed Income 0.25 (31) 6.22 (14) 1.63 (6) 14.77 (3) N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Broad Market Index -2.33 (70) 1.45 (81) -2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84) 13.36 (58) 8.01 (44) 3.36 (24) 2.80 (14) Difference 2.58 4.77 4.28 9.67 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.34 3.53 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 Total Non -Core Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Suisse Leveraged Loan Index 1.82 4.31 5.83 10.73 2.40 10.34 7.72 4.07 6.43 -7.68 Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Returns for periods greater than one year are annualized. Retums are expressed as percentages. r THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 28 (( BOGDAHN ` - GROUP. Comparative Performance Fiscal Year Returns ' Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2Q07 Sep -2006 Sep -2008 Total Real Estate 6.18 (79) 13.91 (38) 16.37 (17) 12.16 (60) 16.52 (54) N/A N/A N/A N/A N/A Retums for periods greater than one year are annualized. Retums are expressed as percentages. � � BOGDAHN Parenthesized number represents pertinent peer group ranking: 1 1 -100, best to worst THE 28 GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Total Real Estate 6.18 (79) 13.91 (38) 16.37 (17) 12.16 (60) 16.52 (54) N/A N/A N/A N/A N/A Total Real Estate Policy 6.49 (70) 12.39 (71) 12.47 (68) 11.77 (66) 18.23 (40) 6.97 (43) -35.19 (52) 18.21 (54) 17.46 (55) 3.18 (51) Difference -0.31 1.52 3.90 0.39 -1.71 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 18.34 18.08 3.23 11 Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking 1 -100, best to worst BOGDAHN 29 -° GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Domestic Equity Anchor All Cap Value Equity 4.45 (66) 17.85 (24) 22.80 (69) 23.97 (76) 3.61 (16) 12.47 (40) N/A N/A N/A N/A Russell 3000 Value Index 4.77 (63) 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (61) 9.15 (71) -10.79 (94) 13.73 (80) 14.55 (20) -22.70 (75) Difference -0.32 0.19 0.13 -7.08 5.83 3.32 N/A N/A N/A N/A IM U.S All Cap Value Equity (SA +CF) Median 5.76 15.40 26.41 27.73 -1.28 10.75 -3.49 17.07 10.85 -19.91 Dalton All Cap Value Equity N/A N/A N/A 22.28 (84) -5.44 (92) 17.46 (12) N/A N/A N/A N/A Russell 3000 Value Index 4.77 (63) 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (61) 9.15 (71) -10.79 (94) 13.73 (80) 14.55 (20) -22.70 (75) Difference N/A N/A N/A -8.77 -3.22 8.31 N/A N/A N/A N/A IM U.S. All Cap Value Equity (SA +CF) Median 5.76 15.40 26.41 27.73 -1.28 10.75 -3.49 17.07 10.85 -19.91 Vanguard 500 Index Signal (VFIAX) 5.97 (1) 19.65 (7) 19.31 (3) 29.99 (18) 0.99 (16) 10.16 (4) -6.80 (10) N/A N/A N/A S &P 500 Index 5.93 (2) 19.73 (1) 19.34 (1) 30.20 (1) 1.14 (2) 10.16 (4) -6.91 (21) 16.44 (2) 10.79 (3) -21.98 (10) Difference 0.04 -0.08 -0.03 -0.21 -0.15 0.00 0.11 N/A N/A N/A IM S &P 500 Index (MF) 1st Quartile 5.83 19.48 19.10 29.93 0.90 9.95 -6.97 16.17 10.53 -22.13 DSM Large Cap Growth 12.66 (10) 17.22 (59) 19.76 (59) 35.68 (3) -0.82 (72) 17.48 (9) N/A N/A N/A N/A Russell 1000 Growth Index 8.81 (58) 19.15 (38) 19.27 (65) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) 19.35 (57) 6.04 (58) -20.88 (54) Difference 3.85 -1.93 0.49 6.49 -4.60 4.83 N/A N/A N/A N/A IM U.S. Large Cap Growth Equity (SA +CF) Median 9.21 18.01 20.39 27.57 1.36 11.31 -3.07 20.21 6.80 -20.37 Vanguard Mid -Cap Index Fund (VMCIX) 11.09 (34) 15.89 (17) N/A N/A N/A N/A N/A N/A N/A N/A CRSP U.S. Mid Cap TR Index 11.25 (31) 15.94 (17) 28.08 (39) 26.23 (50) -0.18 (23) 18.04 (9) -4.75 (51) 18.92 (32) 10.06 (19) -23.20 (65) Difference -0.16 -0.05 N/A N/A N/A N/A N/A N/A N/A N/A IM U.S. Mid Cap Core Equity (MF) Median 9.76 12.12 27.63 26.17 -3.35 13.56 -4.66 16.63 7.30 -21.47 International Equity Manning & Napier Overseas (EXOSX) N/A -0.43 (95) 20.93 (50) 16.04 (34) -12.54 (75) 2.52 (80) N/A N/A N/A N/A Total International Equity Policy -0.36 (79) 5.22 (29) 16.98 (82) 15.04 (50) -10.42 (44) 6.90 (27) 3.80 (35) 25.38 (41) 19.65 (28) -30.13 (42) Difference N/A -5.65 3.95 1.00 -2.12 -4.38 N/A N/A N/A N/A IM International Multi -Cap Core Equity (MF) Median 1.14 4.27 20.90 15.01 -10.95 4.66 1.83 24.89 18.63 - 30.97 American Funds EuroPacific Gr R6 (RERGX) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA -0.36 (89) 5.22 (34) 16.98 (65) 15.04 (74) -10.42 (41) 8.00 (45) 6.43 (14) 31.06 (27) 19.36 (26) -29.97 (64) Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 3.03 4.09 18.24 17.48 -11.33 7.32 0.75 27.90 17.99 -28.35 WCM International Growth Fund (WCMIX) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA -0.36 (89) 5.22 (34) 16.98 (65) 15.04 (74) -10.42 (41) 8.00 (45) 6.43 (14) 31.06 (27) 19.36 (26) -29.97 (64) Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 3.03 4.09 18.24 17.48 -11.33 7.32 0.75 27.90 17.99 -28.35 Returns for periods greater than one year are annualized. Retums are expressed as percentages. 11.1 THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst air BOGDAHN 30 `-. ..! GROUP. Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -207 Sep -2006 Sep -2008 Domestic Fixed Income Difference N/A N/A IN//A IM International Large Cap Grow Equity (MF) Median 3.03 4.09 18.24 17.48 - 11.33 7.32 0.75 27.90 17.99 - 28.35 Retums for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst B O GDAH N 30 ` -- ' GROUP. . Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Domestic Fixed Income Schroders Core Fixed Income 2.97 (14) 3.46 (29) 0.04 (31) 5.63 (48) 3.20 (70) 8.34 (47) 14.83 (11) N/A N/A -0.36 (87) Schroders Core Fixed Income Policy 2.54 (32) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (21) 7.52 (77) 9.69 (81) 4.85 (93) 3.33 (98) 4.16 (35) Difference 0.43 0.72 0.75 1.32 -1.02 0.82 5.14 N/A N/A -4.52 IM U.S. Intermediate Duration (SA +CF) Median 2.40 2.87 -0.27 5.58 3.60 8.27 11.48 5.49 3.92 3.24 Schroders TIPS 0.27 0.77 -4.47 6.96 7.69 7.59 3.80 N/A N/A N/A Barclays U.S. Treasury: U.S. TIPS Index 1.40 1.59 -6.10 9.10 9.87 8.89 5.67 4.97 1.91 6.20 Difference -1.13 -0.82 1.63 -2.14 -2.18 -1.30 -1.87 N/A N/A N/A Barclays U.S. TIPS 1 -10 Year 0.19 0.61 -3.90 6.32 7.19 7.40 4.02 5.32 2.28 7.89 Difference 0.08 0.16 -0.57 0.64 0.50 0.19 -0.22 N/A N/A N/A Global Fixed Income PIMCO Diversified Income Fund (PDIIX) 1.83 (19) 6.09 (17) 0.35 (25) 16.25 (3) N/A N/A N/A N/A N/A N/A Barclays Global Credit (Hedged) 3.32 (9) 6.83 (9) 1.46 (9) 11.61 (7) 1.69 (49) 11.05 (31) 15.99 (25) 3.82 (82) 4.02 (11) -4.40 (78) Difference -1.49 -0.74 -1.11 4.64 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.34 3.53 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 Templeton Global Bond Fund (FBNRX) -1.35 (51) 6.35 (12) 3.52 (3) 13.25 (5) N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -3.97 (89) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 8.69 (31) 2.23 (64) 5.90 (6) Difference 2.62 6.42 8.12 9.96 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.34 3.53 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 Total Non -Core Fixed Income LBC Credit Partners III 1.34 N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Suisse Leveraged Loan Index 1.82 4.31 5.83 10.73 2.40 10.34 7.72 4.07 6.43 -7.68 Difference -0.48 N/A N/A N/A N/A N/A N/A N/A N/A N/A • Crescent Direct Lending Fund 0.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Suisse Leveraged Loan Index 1.82 4.31 5.83 10.73 2.40 10.34 7.72 4.07 6.43 -7.68 Difference -1.82 N/A N/A N/A N/A N/A N/A N/A N/A N/A 1 I 1 0.114 Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst df 31 ( BOGDAHN : `".. GROUP. 1 i Comparative Performance Fiscal Year Returns Total Fund As of March 31, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Real Estate Intercontinental 6.01 (83) 14.10 (37) 18.21 (10) 12.21 (60) 16.52 (54) N/A N/A N/A N/A N/A NCREIF ODCE 6.49 (70) 12.39 (71) 12.47 (68) 11.77 (66) 18.23 (40) 6.97 (43) -35.19 (52) 18.21 (54) 17.46 (55) 3.18 (51) Difference -0.48 1.71 5.74 0.44 -1.71 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 18.34 18.08 3.23 ASB RE 6.49 (70) 12.85 (51) 13.20 (50) N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -ODCE (EW) (Net) 6.49 (70) 12.39 (71) 12.47 (68) 11.77 (66) 18.23 (40) 6.97 (43) -35.19 (52) 18.21 (54) 17.46 (55) 3.18 (51) Difference 0.00 0.46 0.73 N/A N/A N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 6.95 12.90 13.18 12.90 16.62 6.39 -34.80 18.34 18.08 3.23 Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 32 �� BOGDAHN GROUP. Returns for periods greater than one year are annualized. Returns are expressed as percentages. THF. Le BOGDAHN Parenthesized number represents pertinent peer group ranking. 1 -100, best to worst 32 GROUP. THF. BOGDAHN 33 � GROUP Performance Review Total Fund As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Total Fund (Gross) 83,697 - 336 -1,147 -12 -4 283 1,736 84,888 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Total Fund (Gross) 78,185 - 4,596 -2,283 -66 -12 2,109 2,360 84,888 Peer Group Analysis - All Public Plans -Total Fund Cummulative Performance 16 oo $250.00 12 00 $210.54 • #1.32 0 0 • • • 0 $200.00 • 8.00 • • © - �...`-, o • ce 4.00 $150.00 -111•10111 r 0.00 $10000 -4.00 a QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Total Fund (Gross) 2.43 (52) 5.52 (26) 8.15 (31) 10.90 (28) 10.67 (29) 9,10 (28) 9.68 (45) $5 • Total Fund Policy 2.15 (74) 4.57 (55) 8.05 (33) 10 43 (40) 10.33 (39) 9.27 (24) 10.17 (23) 12 /01 6/03 12/04 sins 12/07 6/09 12/10 6/12 12/13 3/15 Median 2.44 4.71 7.28 10.10 10.03 8.38 9.51 - Total Fund (Gross) - Total Fund Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Total Fund (Gross) 3.02 (19) -1.11 (50) 3.64 (50) 1.70 (51) 6.06 (32) 5.18 (39) Total Fund Policy 2.38 (43) -0.51 (19) 3.85 (36) 1.68 (52) 5.39 (60) 4.95 (50) All Public Plans -Total Fund Median 2.23 -1.13 3.63 1.71 5.59 4.94 THE L- C BOGDAHN GROUP. Mill Performance Review Total Fund As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years ^ 2 4.0 n..,.. / m 0.00 _ .. C All Public Plans -Total Fund Median 2.23 - 1.12 ' °' 1. \ THE. 34 r BO GDAHN `-1 GROUP Performance Review Total Fund As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 24.0 Y 0.00 Over e -m 16.0 Performance m 25.00 ° 50.00 ° ° ° 0 0 0 0 0 8 8 8 Q O ° �y 8.0 a ° 0 ° ° ° ° ° ° ° c 0.0 a ° ° ° ° ° u_ _ _ • c 75.00 - 8.0 3 .0 Under o i i k 2 Performance ir 100.00 -16.0 -16.0 -8.0 0.0 8.0 16.0 24.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Total Fund Policy ( %) Total Period 5 - 25 25 Median Median - 75 75 - 95 • Over Performance • Under Performance Count Count Count Count • Total Fund (Gross) 20 1 (5 %) 6 (30 %) 9 (45 %) 4 (20 %) Earliest Date X Latest Date • Total Fund Policy 20 6 (30 %) 10 (50 %) 4 (20 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 10.80 10.50 • s 10.20 trt -7 c- 10.50 E. ` O 9.90 y z 10.20 C 9.60 9.90 5.70 5.85 6.00 6.15 6.30 6.45 6.60 6.75 6.90 8.10 8.19 8.28 8.37 8.46 8.55 8.64 8.73 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard ReturnDeviation Deviation • Total Fund (Gross) 10.67 6.68 • Total Fund (Gross) 9.68 8.58 • Total Fund Policy 10.33 5.92 • Total Fund Policy 10.17 8.18 - Median 10.03 6.28 - Median 9.53 8.58 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Total Fund (Gross) 1.11 107.05 114.49 -0.81 0.33 1.55 1.12 3.67 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.68 1.00 3.19 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Total Fund (Gross) 1.16 102.73 112.65 -0.83 -0.36 1.11 1.04 5.02 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.22 1.00 4.53 TH E•: 35 L --- BOGDAHN °''� GROUP. Il Performance Review Anchor All Cap Value Equity As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Anchor All Cap Value Equity 10,972 - - - - -1 63 -62 10,973 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Anchor All Cap Value Equity 10,508 - - - - -2 128 340 10,973 Peer Group Analysis - IM U.S. All Cap Value Equity (SA +CF) Cumulative Performance 28.00 $300.00 20.00 $ 250.82 250.00 • • • • 12.00 .mss :" `t 0 $200.00 m re 4.00 • w $150.00 -4.00 $100.00 -12.00 $50.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 6/09 3/10 12/10 9/11 6/12 3/13 12/13 3/15 • Anchor All Cap Value Equity 0.01 (77) 4.45 (66) 9.47 (47) 15.11 (61) 16.74 (44) 13.98 (37) 14.82 (39) • Russell 3000 Value Index -0.51 (86) 4.77 (63) 8.94 (52) 15.12 (61) 16.30 (50) 13.18 (49) 13.66 (63) - Anchor All Cap Value Equity Median 1.40 5.76 9.21 16.12 16.24 13.13 14.45 " ° Russell 3000 Value Index 1 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Anchor All Cap Value Equity 4.43 (47) -0.73 (30) 5.58 (27) 3.80 (14) 8.33 (73) 5.73 (63) Russell 3000 Value Index 5.31 (29) -0.87 (34) 4.89 (50) 2.92 (31) 9.95 (40) 4.23 (90) IM U S All Cap Value Equity (SA +CF) Median 4.25 -1.36 4.87 2.08 9.57 6.50 THE 36 BOGDAHN c GROUP Performance Review Anchor All Cap Value Equity As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years D 30.0 - Over / c , 0 00 , IM U.S. All Cap Value Equity (SA +CF) Median 4.25 -1.36 4.87 2.08 9.57 6.50 1 THE 36 Li BOGDAHN GROUP Performance Review Anchor All Cap Value Equity As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years z , 30.0 c 0.00 Over n w 25.0 Performance s: e 25.00 • • • O O O O ® 20.0 50.00 O O O • O • 0 ate. • RI' 15.0 -}' ° c 75 00 t 0 o • 10.0 Under e O 0 0 o Performance ce 100.00 0 0 0 0 L 5.0 5.0 10.0 15.0 20.0 25.0 30.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Russell 3000 Value Index ( %) 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count 0 Over Performance • Under Performance • Anchor All Cap Value Equity 11 1 (9 %) 8 (73 %) 2 (18 %) 0 (0 %) Earliest Date X Latest Date • Russell 3000 Value Index 20 0 (0 %) 9 (45 %) 4 (20 %) 7 (35 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 17.00 15.21 16.80 • e.. c 14.82 • 16.60 ` 14.43 0 1640 14.04 ce re O 13.66 16.20 • 16.00 13.26 7.70 7.92 8.14 8.36 8.58 8.80 9.02 9.24 9.46 10.79 11.62 12.45 13.28 14.11 14.94 15.77 16.60 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard ReturnDeviation Deviation • Anchor All Cap Value Equity 16.74 8.03 • Anchor All Cap Value Equity 14.82 11.86 p Russell 3000 Value Index 16.30 8.22 0 Russell 3000 Value Index 13.66 14.85 Median 16.24 9.14 - Median 14.45 15.59 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Anchor All Cap Value Equity 3.27 90.91 70.99 3.06 0.08 1.84 0.82 4.05 Russell 3000 Value Index 0.00 100.00 - . 0.00 N/A 1.57 1.00 5.53 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Anchor All Cap Value Equity 4.14 87.88 69.65 3.70 0.17 1.30 0.79 5.90 Russell 3000 Value Index 0.00 100.00 100.00 0.00 N/A 1.01 1.00 8.18 THE 37 iL BOGDAHN GROUP. 1 1 Performance Review Vanguard 500 Index Signal (VFIAX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Income Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Deprec. 03/31/2015 55 44 10,596 Vanguard 500 Index Signal (VFIAX) 10,689 - 192 - - Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income De rec. 03/31/2015 10/01/2014 Transfers Fees Expenses p 114 501 10,596 I Vanguard 500 Index Signal (VFIAX) 7,365 2,616 - - Peer Group Analysis - IM S&P 500 Index (MF) Cumulative Performance $200.00 25.00 $164.00 20.00 $150.00 • O • 0 1500 • 0 • 0 $100 00 � 10.00 e a: 5.00 $50.00 000 t i 5.00 $0.00 i 1 I 1 1 1 I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/07 12/08 12/09 12/10 12/11 12/12 12/13 3/15 • Vanguard 500 Index Signal (VFIAX) 0.95 (2) 5.97 (1) 12.74 (1) 17.18 (2) 16.07 (5) 14.07 (9) 14.39 (5) p S &P 500 Index 0.95 (2) 5.93 (2) 12.73 (1) 17.21 (1) 16.11 (1) 14.17 (1) 14.47 (1) - Vanguard 500 Index Signal (VFIAX) S &P 500 Index Median 0.84 5.69 12.20 16.69 15.59 13.62 13.91 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Vanguard 500 Index Signal (VFIAX) 4.97 (2) 1.12 (4) 5.21 (10) 1.79 (8) 10.48 (13) 5.23 (9) S &P 500 Index 4.93 (4) 1.13 (2) 5.23 (3) 1.81 (3) 10.51 (5) 5.24 (3) IM S &P 500 Index (MF) Median 4.81 1.01 5.11 1.69 10.39 5.12 THE 38 � BO GDAHN GROUP - Performance Review Vanguard 500 Index Signal (VFIAX) As of March 31. 201 3 Yr Rolling Under /Over Performance - 5 Years 3 Y r Rollin Percentile Ranking - 5 Years `.. r, r, n n n r, n n n n (l GQ S &P 500 Index 4.93 (4) 1.13 (2) D.to t'/ IM S &P 500 Index (MF) Median, 4.81 1.01 5.11 1.69 10.39 5.12 Illoil THE 38 BOGDAHN ` GROUP. Performance Review Vanguard 500 Index Signal (VFIAX) As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years i pp oo 0 • • pp QQ - 30.0 0 00 > Over m • 0 0 ® ® 0 • • ® i S • • • • • • Performance 10 • 20.0 rc 25 00 i5 c : 10.0 50.00 d c a c 0 0 0 0. MI , Under w v Performance cc ,_ • .«.,. . A -10.0 100.00 i f i t -10.0 0.0 10.0 20.0 30.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 S &P 500 Index (%) Total Period 5 - 25 25 Median Median - 75 75 - 95 • Over Performance • Under Performance Count Count Count Count • Vanguard 500 Index Signal (VFIAX) 18 18 (100% 0 (0 %) 0 (0 %) 0 (0 %) Earliest Date X Latest Date 0 S &P 500 Index 20 20 (100% 0 (0 %) 0 (0 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 1640 14.60 16.20 14.40 O • v _ 16.00 14.20 t Fs 0 15.80 5 K K 14.00 15.60 15.40 13.80 9.45 9.46 12.85 12.86 12.87 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Return Standard Retum Deviation Deviation • Vanguard 500 Index Signal (VFIAX) 16.07 9.45 • Vanguard 500 Index Signal (VFIAX) 14.39 12.87 O S &P 500 Index 16.11 9.45 • S &P 500 Index 14.47 12.86 Median 15.59 9.45 - Median 13.91 12.85 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Beta Downside Error Market Market Alpha Ratio Ratio Risk Capture Capture Vanguard 500 Index Signal (VFIAX) 0.03 99.85 100.05 -0.04 -1.18 1.63 1.00 5.09 S &P 500 Index 0.00 100.00 100.00 0.00 N/A 1.63 1.00 5.08 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Vanguard 500 Index Signal (VFIAX) 0.08 99.82 100.18 -0.08 -0.91 1.11 1.00 7.46 S &P 500 Index 0.00 100.00 100.00 0.00 N/A 1.11 1.00 7.43 THE 39 L.---# BOGDAHN GROUP Performance Review Vanguard Mid -Cap Index Fund (VMCIX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Vanguard Mid -Cap Index Fund (VMCIX) 13,987 -88 - - - - 3 594 14,497 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Vanguard Mid -Cap Index Fund (VMCIX) 13,771 -769 - - - - 179 1,316 14,497 Peer Group Analysis - IM U.S. Mid Cap Core Equity (MF) Cumulative Performance 8150.00 2600 4139:93 20.00 • ® $135.00 • 14.00 • O • /°°‘"°' c • 0 .. $120.00 m K 8.00 • O 8105.00 2.00 -4.00 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 • Vanguard Mid -Cap Index Fund (VMCIX) 4.28 (37) 11.09 (34) 14.77 (10) N/A N/A N/A N/A o CRSP U.S. Mid Cap TR Index 4.32 (35) 11.25 (31) 14.95 (8) 19.27 (13) 18.18 (16) 14.37 (7) 16.46 (7) - Vanguard Mid -Cap Index Fund (VMCIX) Median 3.68 9.76 10.49 16.56 16.13 12.14 14.04 CRSP U.S Mid Cap TR Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Vanguard Mid - Cap Index Fund (VMCIX) 6.52 (32) -1.14 (19) 4.51 (35) 3.27 (34) 8.62 (53) 7.69 (52) CRSP U.S. Mid Cap TR Index 6.65 (27) -1.15 (20) 4.53 (34) 3.30 (32) 8.63 (52) 7.71 (51) IM U.S. Mid Cap Core Equity (MF) Median 5.60 -2.49 3.76 2.70 8.83 7.71 THE BO GDAHN 40 l,----- GROUP - 1 CRSP U.S. Mid Cap TR Index 6.65 (27) -1.15 (20) 4.53 (34) 3.30 (31) 0.03 tz) 1 . < I kJ!) IM U.S. Mid Cap Core Equity (MF,I 5.60 -2.49 3.76 2.70 8.83 7.71 THE 40 (1 BOGDAHN GROUP. I � 41 4 - Performance Review DSM Large Cap Growth As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 DSM Large Cap Growth 10,112 - - - - -1 22 381 10,515 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 DSM Large Cap Growth 9,335 - - - - -2 41 1,140 10,515 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA +CF) Cumulative Performance $400 00 28.00 $300.00 32 ®8 20.00 • • • ® • $200.00 0 c 12.00 • mil Q $100 00 4.00 • o 4 00 8 K 1 t $0 00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/08 9/09 6/10 3/11 12/11 9/12 6/13 3/14 3/15 • DSM Large Cap Growth 3.99 (49) 12.66 (10) 18.15 (23) 20.33 (46) 17.67 (25) 16.73 (15) 17.48 (12) O Russell 1000 Growth Index 3.84 (52) 8.81 (58) 16.09 (42) 19.60 (56) 16.34 (48) 14.99 (42) 15.63 (45) - DSM Large Cap Growth Median 3.93 9.21 15.13 19.90 16.20 14.48 15.29 Russell 1000 Growth Index Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec - 2014 Sep - 2014 Jun - 2014 Mar - 2014 Dec - 2013 Sep - 2013 DSM Large Cap Growth 8.34 (4) 2.54 (15) 2.28 (92) -1.24 (91) 13.18 (6) 9.34 (44) Russell 1000 Growth Index 4.78 (58) 1.49 (39) 5.13 (34) 1.12 (44) 10.44 (61) 8.11 (62) IM U.S. Large Cap Growth Equity (SA +CF) Median 5.11 1.14 4.59 0.83 10.90 8.87 Tut 42 L-....-00 � BOGDAHN __ GROUP Performance Review DSM Large Cap Growth As of March 31.2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years e 30.0 0 .00 • • Ali Ali Russell 1000 Growth Index 4./0 kW)) i.va toe/ t� IM U.S. Large Cap Growth Equity (SA +CF) Median 5.11 1.14 4.59 0.83 10.90 8.87 '. THE 42 BOGDAHN L,..../ GROUP - _ Performance Review DSM Large Cap Growth As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years : 30.0 c 0.00 3 25.0 Performance a 25.00 • • • • • RP 60 0 di a 20.0 • - 50.00 N O U 0 • 15.0 • a FT E 75.00 10.0 Under o f Performance re w 5.0 100.00 5.0 10.0 15.0 20.0 25.0 30.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Russell 1000 Growth Index ( %) Total Period 5 - 25 25 Median Median - 75 75 • Over Performance 0 Under Performance Count Count Count Count �/ • DSM Large Cap Growth 14 10 (71 %) 3 (21 %) 1 (7 %) 0 (0 %) • Earliest Date X Latest Date 0 Russell 1000 Growth Index 20 0 (0 %) 18 (90 %) 2 (10 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 18.00 18.00 _ 17.50 • 17.28 • E 17.00 . 16.56 m 16.50 15.84 O re re 16.00 15.12 15.50 14.40 7.60 8.00 8.40 8.80 9.20 9.60 10.00 10.40 14.19 14.62 15.05 15.48 15.91 16.34 16.77 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard Return Return Deviation Deviation • DSM Large Cap Growth 17.67 10.05 • DSM Large Cap Growth 17.48 16.39 O Russell 1000 Growth Index 16.34 8.29 • Russell 1000 Growth Index 15.63 14.58 _ Median 16.20 9.29 - Median 15.29 15.49 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Market Market Al Ratio Ratio Beta Risk Error Capture Capture DSM Large Cap Growth 4.45 110.87 115 15 - 0.61 0.31 1.45 1.13 6.11 Russell 1000 Growth Index 0.00 100.00 1M) )r 0 00 N/A 1.61 1.00 4 ∎ � Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha B Risk Error Capture Capture Ratio Ratio DSM Large Cap Growth 4.11 108.14 103.48 0.76 0.44 1.17 1.07 7.86 Russell 1000 Growth Index 0.00 100.00 100.00 Oil N/A 1.16 1.00 ,' 3i THE 43 (� � BO GDAHN `°'� GROUP 1 Performance Review Schroders Core Fixed Income As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Schroders Core Fixed Income 7,916 -209 - - - - 56 72 7,835 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value j 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Schroders Core Fixed Income 7,945 -340 - - - -2 117 115 7,835 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) Cumulative Performance $165.00 8.00 6 00 $150.00 $147.69 ,142.87 4.00 • $135.00 ""� i m • • • IIIIII �� ce ... 2.00 • MI $120.00 0.00 $105.00 - 2.00 I i I $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 • Schroders Core Fixed Income 1.64 (21) 2.97 (14) 4.75 (15) 2.71 (17) 3.22 (25) 3.98 (27) 4.10 (39) • Schroders Core Fixed Income Policy 1.32 (80) 2.54 (32) 4.24 (31) 2.10 (49) 2.41 (77) 3.34 (71) 3.62 (74) - Schroders Core Fixed Income Median 1.47 2.40 3.87 2.09 2.74 3.60 3.90 Schroders Core Fixed Income Policy Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Schroders Core Fixed Income 1.31 (8) 0.23 (13) 1.50 (39) 1.70 (15) 0.00 (77) 0.84 (27) Schroders Core Fixed Income Policy 1.20 (18) 0.03 (39) 1.62 (27) 1.20 (52) - 0.14 (93) 0.76 (42) IM U.S. Intermediate Duration (SA +CF) Median 0.91 0.00 1.40 1.22 0.21 0.72 THE 44 L : BOGDAHN `- -� GROUP. Performance Review Schroders Core Fixed Income As of March_31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years ,� 12.5 m / ooc ver Schroders Core Fixed Income Policy 1.20 (18) 0.03 (39) 1.62 (27) 1.20 (52) -0.14 (93) 0.76 (42) IM U.S. Intermediate Duration (SAN CF) Median 0.91 0.00 1.40 1.22 0.21 0.72 THE 44 1101 BOGDAHN GROUP Ir 111111111.1111111111111." Performance Review Schroders Core Fixed Income As of March 31.2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years = 12.5 x 0.00 Over A E Performance rc • u 10.0 + Y 25.00 • • • • • ® • c • x 7.5 0 •-1' 0 50 00 ^ O 0 0 O O O 0 0 0 O 0_ o 5.0 E 75.00 SI-Jf 0 0 0 00 0 0 0 0 0 o 0 0 0 0 0 0 0 0 N K m. • 2 5 100.00 9 o Under Performance 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 L 0.0 0 0 2 5 5.0 7.5 10.0 12 5 Total Period 5 -25 25- Median Median -75 75 -95 Schroders Core Fixed Income Policy ( %) Count Count Count Count • Schroders Core Fixed Income 20 4 (20 %) 7 (35 %) 9 (45 %) 0 (0 %) • Over Performance + Earliest Date X Latest Date o Schroders Core Fixed Income Policy 20 0 (0 %) 0 (0 %) 10 (50 %) 10 (50 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 3.51 4.20 3.24 • x . 4.00 - • e. 0 2.97 3.80 m2.70 - e • 2.43 • 3.60 2.16 3.40 1.86 1.89 1.92 1.95 1.98 2.01 2.13 2.16 2.19 2.22 2.25 2.28 2.31 2.34 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Schroders Core Fixed Income 3.22 1.96 • Schroders Core Fixed Income 4.10 2.16 • Schroders Core Fixed Income Policy 2.41 1.86 • Schroders Core Fixed Income Policy 3.62 2.16 - Median 2.74 1.92 - Median 3.90 2.29 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error 9 Market Market Alpha Ratio Ratio Beta Risk Capture Capture Schroders Core Fixed Income 0.54 117.84 98.77 0.55 1.46 1.34 1.10 1.26 Schroders Core Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1 13 1 00 1.18 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error 9 Market Market Alpha Ratio Ratio Beta Risk Capture Capture Schroders Core Fixed Income 0.69 112.02 109.85 0.28 0.67 1.72 1.05 1.12 Schroders Core Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.67 1 00 1.04 THE 45 l� BO GDAHN GROUP 1 1 Performance Review Schroders TIPS As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Schroders TIPS 1,145 - - - - - 2 14 1,161 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Schroders TIPS 1,158 - - - - - 5 -2 1,161 Peer Group Analysis - IM U.S. TIPS (SA +CF) Cumulative Performance 8 $140.00 $130.00 5.00 11•d96 E Q $120.00 • F. 2.00 • Q ", iim iii .„... .,_.,. , : $110.00 • O -1 00 • 0 $100.00 -4.00 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/07 12/08 12/09 12/10 12/11 12/12 12/13 3/15 • Schroders TIPS 1.41 (55) 0.27 (82) 1.26 (76) -2.10 (92) 0.01 (81) 2.16 (74) 3.09 (72) o Barclays U.S TIPS 1 -10 Year 1.20 (90) 0.19 (86) 1.08 (90) -1.97 (79) -0.05 (88) 1.89 (90) 2.85 (91) - Schroders TIPS Median 1.44 1.35 2.93 -1.80 0.63 3.41 4.30 Barclays U.S TIPS 1 -10 Year Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Schroders TIPS -1.12 -1.91 2.96 0.99 -1.20 1.03 Barclays U.S TIPS 1 -10 Year -1.00 -1.99 2.94 1 03 -1.30 0.92 THE 46 ( ( BOGDAHN GROUP. Performance Review Schroders TIPS As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years i 12 .0 s 0 00 Schroders TIPS -1.1z '"' 1.30 Barclays U.S. TIPS 1 -10 Year - 1.00 -1.99 2.94 1.03 THE. 1 46 r BO GDAHN `' GROUP 11111111111111111111111111111111111111111111110- -11111111P--- --11111111MMIMIMIMMINIMIIMIls- Performance Review Schroders TIPS As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 12.0 _. 0.00 Over c ,e 9.0 Performance z 0 2500 a. a 7. - F 6.0 c m 50.00 0 O 3.0 0. u) 0 Under o Performance rc 3.0 100.00 -3.0 0.0 3.0 6.0 9.0 12.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Barclays U.S. TIPS 1 -10 Year ( %) 5 - 25 - Median Median - 75 - Total Period Count Count Count Count • Over Performance • Under Performance �/ • Schroders TIPS 18 0 (0 %) 0 (0 %) 4 (22 %) 14 (78 %) ▪ Earliest Date X Latest Date • Barclays U.S. TIPS 1 -10 Year 20 0 (0 %) 0 (0 %) 0 (0 %) 20 (100 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 0.90 4.80 - 4.32 0.60 e, 3.84 E 0.30 0 3.36 re ce 0.00 2.88 • -0.30 2.40 3.91 4.14 4.37 4.60 4.83 5.06 5.29 5.52 5.75 3.64 3.90 4.16 4.42 4.68 4.94 5.20 5.46 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Return Standard Return Deviation Deviation • Schroders TIPS 0.01 4.60 • Schroders TIPS 3.09 4.19 • Barclays U.S. TIPS 1 -10 Year -0.05 4.25 • Barclays U.S. TIPS 1 -10 Year 2.85 3.86 Median 0.63 5.47 Median 4.30 5.23 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Schroders TIPS 0.44 101.78 100.55 0.06 0.14 0.01 1.02 3.09 Barclays U.S. TIPS 1 - Year 0.00 100.00 100.00 0.00 N/A -0.01 1.00 2.97 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Beta Risk Error Capture Capture Ratio Ratio Schroders TIPS 0.49 102.73 98.52 0.20 0.48 0.80 1.01 2.48 Barclays U.S. TIPS 1 -10 Year 0.00 100.00 100.00 0.00 N/A 0.76 1.00 2.38 THE. 47 r BO GDAHN L" GROUP Performance Review PIMCO Diversified Income Fund (PDIIX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Contributions Distributions Management Other Apprec./ Market Value 01/01/2015 Transfers Fees Expenses Income Deprec. 03/31/2015 PIMCO Diversified Income Fund (PDIIX) 3,833 - - - - - 49 79 3,961 Financial Reconciliation October 1, 2014 To March 31 2015 Market Value Net Contributions Distributions Management Other Apprec./ Market Value 10/01/2014 Transfers Fees Expenses Income Deprec. 03/31/2015 PIMCO Diversified Income Fund (PDIIX) 3,890 - - - - - 298 -227 3,961 Peer Group Analysis - IM Global Fixed Income (MF) Cumulative Performance 12.00 $136.00 $128.00 800 $127.34 • • • • Q • _,.124.30 4.00 • ® • • $120.00 ' 0 • • c 0.00 ,.... C $112.00 ' ors - 4.00; / $104.00 -800 $96.00 -12.00 $88.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 • PIMCO Diversified Income Fund (PDIIX) 3.36 (1) 1.83 (19) 3.85 (17) 2.42 (23) 5.08 (9) 5.59 (9) N/A • Barclays Global Credit (Hedged) 2.23 (6) 3.32 (9) 6.31 (8) 4.50 (5) 5.78 (5) 6.23 (5) 6.15 (13) - PIMCO Diversrfied Income Fund (PDIIX) Median 0.06 -1.34 -0.91 0.18 1.71 2.23 2.96 - Barclays Global Credit (Hedged) Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Endin Dec -2094 Se p-2014 Ending Ending Ending Ending P Jun -2014 Mar -2014 Dec -2013 Sep -2013 PIMCO Diversified Income Fund (PDIIX) -1.48 (70) -2.12 (56) 4.18 (2) 2.47 (49) 1.52 (18) 1.39 (43) Barclays Global Credit (Hedged) 1.07 (12) 0.30 (14) 2.59 (43) 2.55 (47) 1.25 (26) 1.27 (44) IM Global Fixed Income (MF) Median -1.06 -1.71 2.39 2.42 0.64 1.00 THE 48 C BOGDAHN L�..I GROUP Performance Review PIMCO Diversified Income Fund (PDIIX) As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 8.0 0 00 rm .-, f3 n Q 0 Over Barclays Global Credit (Hedged) 1.07 (12) 0.30 (14) 2.59 (43) 2.55 (47) 1.25 (26) 1.27 (44) IM Global Fixed Income (MF) Medtan -1.06 -1.71 2.39 2.42 0.64 1.00 THE 48 ( BO GDAHN GROUP. Performance Review PIMCO Diversified Income Fund (PDIIX) As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years :8.0 x 0.00 v Over a • • • 0 • $ Performance • ® Q Q • LL 7 . 2 rr • e 25.00 C • • O 0 0 o 6.4 - T ° 0 50.00 • 5.6 a. :r: )( : ., 4.8 Under o r , P 100.00.. -mss 4.0 4.0 4.8 5.6 6.4 7.2 8.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 Barclays Global Credit (Hedged) ( %) Total 5 - 25 25 Median Median - 75 75 - 95 • Over Performance • Under Performance Period Count Count Count Count • PIMCO Diversified Income Fund (PDIIX) 5 5 (100 ° / 0 (0 %) 0 (0 %) 0 (0 %) ▪ Earliest Date X Latest Date • Barclays Global Credit (Hedged) 20 13 (65 %) 7 (35 %) 0 (0 %) 0 (0 %) i Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 800 8.00 . 6.00 • c. 6.00 E 4.00 c m m 4.00 K2.00 re 0.00 2.00 2.72 3.06 3.40 3.74 4.08 4.42 4.76 5.10 5.44 3.06 3.40 3.74 4.08 4.42 4.76 5.10 5.44 5.78 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Return Standard Retum Deviation Deviation I • PIMCO Diversified Income Fund (PDIIX) 5.08 4.98 • PIMCO Diversified Income Fund (PDIIX) N/A N/A • Barclays Global Credit (Hedged) 5.78 3.20 • Barclays Global Credit (Hedged) 6.15 3.53 Median 1.71 4.30 - Median 2.96 5.36 Historical Statistics - 3 Years Up Down Trackin Market Market Alpha Information Sharpe Beth Downside Error Capture Capture Ratio Ratio PIMCO Diversified Income Fund (PDIIX) 2.66 121.81 205.05 -2.63 -0.22 1.01 1.37 3.44 Barclays Global Credit (Hedged) 0.00 100.00 100.00 0.00 N/A 1.76 1.00 1.83 Historical Statistics - 5 Years g Up Down Downside Tracking Market Market AI ha Information Sharpe Beta Error Alpha Capture Ratio Ratio Risk PIMCO Diversified Income Fund (PDIIX) N/A N/A N/A N/A N/A N/A N/A N/A Barclays Global Credit (Hedged) 0.00 100.00 100.00 0.00 N/A 1.69 1.00 1.88 THE 49 (�( BO GDAHN `-''r GROUP 1 Performance Review Templeton Global Bond Fund (FBNRX) As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other 01/01/2015 Transfers Contributions Distributions Income Apprec./ Market Value Templeton Global Bond Fund (FBNRX) 3,753 Fees Expenses Deprec. 03/31/2015 - 31 -21 3,762 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other 10/01/2014 Transfers Contributions Distributions Income APPrec./ Market Value Templeton Global Bond Fund (FBNRX) 3,814 _ Fees Expenses Deprec. 03/31/2015 - - - - 203 -254 3,762 Peer Group Analysis - IM Global Fixed Income (MF) Cumulative Performance 12.00 $128.00 8.00 $120.00 $117.74 4.00 • • E • $112.00 ,_ ,.,,.___ 14 i 000 • • d , . ,„ , __ . ____ -4.00 $104.00 $100.04 x.00 $96.00 -12.00 t 1 1 $Ba 00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Templeton Global Bond Fund (FBNRX) 0.26 (44) -1.35 (51) 1.37 (35) 1.56 (36) 4.26 (14) 4.17 (24) N/A 3/11 9/11 3i12 9i12 3/13 9/13 3/14 9/14 3/15 o Citigroup World Government Bond -2.51 (98) -3.97 (89) -5.50 (92) -2.12 (84) -1.64 (95) 0.01 (89) 1.42 (91) Templeton Global Bond Fund (FBNRX) Median 0.06 -1.34 -0.91 0.18 1.71 2 .23 2.96 - Citigroup World Government Bond Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Endin 1 Qtr 1 Qtr Endi Dec -2014 Sep -2014 Jun -2014 Mar -2014 Sep-2013 g n Templeton Global Bond Fund (FBNRX) -1.60 g 2.72 x (72) ( 1 0.08 (15) 2.68 (41) 0.76 (95) 2.71 ( ) 1.08 (49) Citigroup World Government Bond -1.49 (70) -3.78 (91) 2.27 IM Global Fixed Income (MF) Median -1.06 -1. ( 2.42 (41) 0.64 (90) 2.80 (3) 71 2.39 2.42 0.64 1.00 THE 50 /C .: . ( BOGDAHN `` -� GROUP. Performance Review Templeton Global Bond Fund (FBNRX) As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years z 120 m Over / m 0.00 - . Templeton Cilobal ttona Tuna (rtsNNA) -1.0U (1Z) v.vo tIv/ G.V0 t + Ii Citigroup World Government Bond - 1.49 (70) -3.78 (91) 2.27 (54) 2.66 (41) -1.09 (90) 2.88 (3) IM Global Fixed Income (MF) Median - 1.06 -1.71 2.39 2.42 0.64 1.00 THE. BOGDAHN 50 `-....# GROUP F -- Performance Review Templeton Global Bond Fund (FBNRX) As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years •� 12.0 m 0.00 • • m Over e • • U. Performance o 25.00 0 0 • v - 8.0 Q c O r. O U . LL v 0.-Fr u 50.00 c 4.0 m 0 o e. E 75.00 O o O a 0 00 0 O O D p 0 0 0 0 0 0 e 0 . a 100.00 Under C Performance 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 40 - 4.0 0.0 4.0 8.0 12.0 Total 5 - 25 25 Median Median - 75 75 - 95 Citigroup World Government Bond ( %) Period Count Count Count Count • Templeton Global Bond Fund (FBNRX) 5 4 (80 %) 1 (20 %) 0 (0 %) 0 (0 %) Over Performance Earliest Date X Latest Date 0 Citigroup World Government Bond 20 2 (10 %) 2 (10 %) 1 (5 %) 15 (75 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 6.00 3.50 - 4.00 • 3.00 2.00 _ 2.50 0.00 d 2.00 K K -2.00 1.50 0 -4.00 1.00 3.69 4.10 4.51 4.92 5.33 5.74 6.15 6.56 6.97 5.24 5.26 5.28 5.30 5.32 5.34 5.36 5.38 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Templeton Global Bond Fund (FBNRX) 4.26 6.31 • Templeton Global Bond Fund (FBNRX) N/A N/A • Citigroup World Government Bond -1.64 4.20 • Citigroup World Government Bond 1.42 5.27 Median 1.71 4.30 Median 2.96 5.36 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global Bond Fund (FBNRX) 6.16 126.41 31.05 5.38 0.97 0.68 0.56 4.30 Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A -0.39 1.00 3.39 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global Bond Fund (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A 0.28 1.00 3.65 THE 51 BOGDAHN • GROUP. Performance Review Intercontinental As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value 01/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Intercontinental 4,662 - - - - - - 54 4,716 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 03/31/2015 Intercontinental 4,492 - - - -46 - 46 224 4,716 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) Cumulative Performance 32.00 $225 00 26.00 $200 00 $195.69 185.89 2000 $175.00 E 0 14.00 0 • 0 • Ilinilailli C • O $150 00 ti 8.00 Illaddi $125.00 -+. iMiklakkom 2.00 • $100 00 X00 6 t t 6 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR • Intercontinental 1.15 (100) 6.01 (83) 12.69 (74) 14.39 (49) 14.30 (36) 14.37 (50) 13.20 (83) $75 00 • NCREIF ODCE 3.28 (55) 6.49 (70) 13.21 (62) 13.25 (74) 12.41 (68) 12.97 (72) 14.37 (73) 3/10 12/10 9/11 6/12 3/13 12/13 9/14 3/15 Median 3.42 6.95 14.14 14.31 13.78 14.29 15.76 - Intercontinental - NCREIF ODCE Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Intercontinental 4.81 (16) 3.79 (24) 2.42 (90) 1.89 (81) 5.35 (3) 3.66 (43) NCREIF ODCE 3.11 (58) 3.46 (41) 2.76 (67) 2.52 (62) 3.12 (53) 3.37 (55) IM U.S. Open End Private Real Estate (SA +CF) Median 3.41 3.33 3.15 2.81 3.22 3.54 52 (1 THE BOGDAHN GROUP. 1 Performance Review Intercontinental As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 18 0 0 00 \- Over c Performance ■ Performance Review Intercontinental As of March 31. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 18.0 x 0.00 Over c e i Performance 1. 16.0 O • e 25.00 ® • • • 0 00 y • 14.0 • O • 50.00 0 0 0 D 0 0 0 0 0 c . 4 • 0 0 0 0 0 0 0 0 0 E 75.00 ii • 12.0 0 c Under m Performance rc • 10.0 100.00 10.0 12.0 14.0 16.0 18.0 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 NCREIF ODCE ( %) 5 -25 25- Median Median -75 75 -95 Total Period Count Count Count Count • Over Performance • Under Performance • Intercontinental 9 0 (0 %) 7 (78 %) 0 (0 %) 2 (22 %) 4. Earliest Date X Latest Date • NCREIF ODCE 20 0 (0 %) 10 (50 %) 10 (50 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 15.12 16.80 _ 14.49 15.96 13.86 15 . 12 m 13.23 m 14.28 • • 12.60 13.44 • • I 11.97 12.60 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1.52 1.90 2.28 2.66 3.04 942 3.80 4.18 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard Return Return Deviation Deviation • Intercontinental 14.30 3.02 • Intercontinental 13.20 3.53 • NCREIF ODCE 12.41 0.81 • NCREIF ODCE 14.37 1.68 - Median 13.78 1.52 - Median 15.76 3.10 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.15 114.81 N/A 0.28 0.56 2.14 1.12 0.00 NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 2.40 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture Intercontinental 4.40 92.58 N/A 1.85 -0.23 2.01 0.79 0.84 NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 2.33 1.00 0 00 THE 53 4( BOGDAHN ``- GROUP. Performance Review ASB RE As of March 31. 2015 Financial Reconciliation 1 Quarter Market Value Net Management Other q 01/01/2015 Transfers Contributions Distributions Income pprec./ Market Value Fees Expenses Deprec. 03/31/2015 ASB RE 2,584 - - - -8 - - 72 2,647 Financial Reconciliation October 1, 2014 To March 31, 2015 Market Value Net Management Other 10/01/2014 Transfers Contributions Distributions g Income Apprec.l Market Value Fees Expenses Deprec. 03/31/2015 ASB RE 2,501 - - - -16 - - 162 2,647 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) Cumulative Performance 32.00 $150.00 26.00 $140.00 03 5 r::61 20.00 $130.00 c 14.00 A w • O. ' $120.00 8.00 • Q $110.00 2.00 $100.00 -4.00 $90.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/12 3/13 9/13 3/14 9/14 3/15 • ASB RE 2.77 (92) 6.49 (70) 13.51 (59) 13.66 (67) N/A N/A N/A • NCREIF Fund Index -ODCE (EW) (Net) 3.28 (55) 6.49 (70) 13.21 (62) 13.25 (74) 12.41 (68) 12.97 (72) 14.37 (73) - ASB RE Median 3.42 6.95 14.14 14.31 13.78 14.29 15.76 °NCREIF Fund Index - ODCE (EVJ) (Net) Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 ASB RE 3.62 (46) 3.84 (22) 2.65 (77) 2.74 (55) 3.06 (61) 5.01 (11) NCREIF Fund Index - ODCE (EVV) (Net) 3.11 (58) 3.46 (41) 2.76 (67) 2.52 (62) 3.12 (53) 3.37 (55) IM U S. Open End Private Real Estate (SA +CF) Median 3.41 3.33 3.15 2.81 3.22 3.54 THE 54 (� BOGDAHN `�� GROUP. ` NCREIF Fund Index -ODCE (EVV) (Net) 3.11 (58) 3.46 (41) 2.76 (67) 2.52 (62) 3.12 (53) s.si took IM U.S. Open End Private Real.. state (SA +CF) Median 3.41 3.33 3.15 2.81 3.22 3.54 1111 THF. 54 P BOGDAHN GROUP. i k 55 Historical Benchmark Hybrid Compositions Total Fund As of March 31, 2015 Total Fund Policy Total Fixed Income Policy Allocation Mandate Weight ( %) Allocation Mandate Weight ( %) Jan -1973 Jan -1979 100.00 I S &P 500 Index 65.00 Barclays Intermediate U.S. Gov /Credit Index 3 Year U.S. Treasury Note 30.00 5.00 Jul -2007 Citigroup 3 Month T -Bill Index Barclays Intermediate Aggregate Index 100.00 Jul -2007 Oct -2007 Citigroup 3 Month T -Bill Index 5.00 35.00 Barclays Intermediate U.S. Gov /Credit Index 87.50 Barclays Intermediate Aggregate Index Barclays U.S. Treasury: U.S. TIPS Index 12.50 MSCI EAFE Index 10.00 Russell 3000 Index 50.00 Jun -2009 Barclays Intermediate Aggregate Index 83.33 Oct -2007 Barclays U.S. TIPS 1 -10 Year 16.67 Russell 3000 Value Index 20.00 20.00 Russell 1000 Growth Index 20. Feb -2010 S &P 500 Index 10.00 Barclays Intermediate Aggregate Index 83.33 Barclays Intermediate Aggregate Index 35.00 Barclays U.S. Treasury: U.S. TIPS Index 16.67 Barclays U.S Treasury: U.S TIPS Index 5.00 MSCI EAFE Index 10.00 Jun -2009 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 25.00 Barclays U.S. TIPS 1 -10 Year 5.00 MSCI EAFE Index 10.00 5.00 STW Fixed Income Policy Citigroup 3 Month T -Bill Index 5. Allocation Mandate Weight ( %) NCREIF Fund Index -ODCE (EW) (Net) 5.00 Jan -1973 Feb -2010 Barclays U.S. Gov't/Credit 100.00 Russell 3000 Index 45.00 25.00 Jun -2007 Barclays Intermediate Aggregate Index Barclays Intermediate Aggregate Index 100.00 Barclays U.S. TIPS 1 -10 Year 5.00 MSCI AC World ex USA 15.00 NCREIF Fund Index -ODCE (EW) (Net) 10.00 Mar -2010 Russell 3000 Index 45.00 Barclays Intermediate Aggregate Index 25.00 Barclays U.S. Treasury: U.S. TIPS Index 5.00 MSCI AC World ex USA 15.00 NCREIF Fund Index -ODCE (EW) (Net) 10.00 THE 56 C BOGDAHN --# GROUP I Historical Benchmark Hybrid Compositions Weight Total Fund As of March 31, 2015 Total Equity Policy Allocation Mandate Weight ( %) Total Domestic Equity Policy Allocation Mandate (b/°) 1...,_•1 ova NCREIF Fund Index -ODCE (EW) (Net) 10.00 THE 56 BOGDAHN `--" GROUP - -- Historical Benchmark Hybrid Compositions Total Fund As of March 31, 2015 Total Equity Policy Total Domestic Equity Policy Allocation Mandate Weight ( %) Allocation Mandate Weight ( %) Jan -1926 Jan -1926 S &P 500 Index 100.00 S &P 500 Index 100.00 Jul -2007 Jul -2007 Russell 3000 Index 85.00 Russell 3000 Index 100.00 MSCI EAFE Index 15.00 Oct -2007 Oct -2007 Russell 3000 Value Index 40.00 MSCI EAFE Index 15.00 Russell 1000 Growth Index 40.00 S &P 500 Index 15.00 S &P 500 Index 20.00 Russell 3000 Value Index 35.00 Russell 1000 Growth Index 35.00 Jun -2009 Russell 3000 Index 100.00 Jun -2009 Russell 3000 Index 83.33 MSCI EAFE Index 16.67 Feb -2010 Russell 3000 Index 75.00 MSCI AC World ex USA 25.00 Total International Equity Policy Allocation Mandate Weight ( %) Jan -1970 MSCI EAFE Index 100.00 Feb -2010 MSCI AC World ex USA 100.00 THE 57 r BOGDAHN `--'' GROUP. 1 Compliance Checklist Total Fund Boynton Beach FF As of March 31, 2015 Total Fund Compliance: Yes No N/A 1. The Total Plan return equaled or exceeded the 7.8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 4. Total foreign securities were less than 25% of the total plan assets at market. ✓ Equity Compliance: Yes No N/A 1. Total equity returns equaled or exceeded the benchmark over the trailing three and five year periods. ✓ 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. The total equity allocation was less than 70% of the total plan assets at market. ✓ Fixed Income Compliance: Yes No N/A 1. Total fixed income returns equaled or exceeded the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. V Anchor ACV VG Mid -Cap VG 500 Index DSM LCG WCMIX Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. ✓ ✓ V ✓ ✓ 2. Manager ranked within the top 40th percentile once over the last four quarters. ✓ ✓ ✓ ✓ ✓ 3. Less than four consecutive quarters of under - performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ 4. Three and five year down market capture ratio less than 100 %. ✓ ✓ ✓ ✓ ✓ 5. Manager reports compliance with PFIA. ✓ ✓ ✓ ✓ ✓ STW Core Fl STW TIPS PIMCO* Templeton* RERGX Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. ✓ ✓ `/ ✓ ✓ 2. Manager ranked within the top 40th percentile once over the last four quarters. ✓ ✓ ✓ ✓ 3. Less than four consecutive quarters of under - performance relative to the benchmark. ✓ ✓ ✓ ✓ V 4. Three and five year down market capture ratio less than 100 %. ✓ ✓ V V ✓ 5. Manager reports compliance with PFIA. ✓ ✓ ✓ ✓ ✓ *Data available for three year period only due to inception date. 58 Compliance Checklist Total Fund As of March 31, 2015 ASB RE Intercontinental LBC Crescent Manager Compliance: , . Yes No N/A Yes No N/A Yes No N/A Yes `-No N/A Yes No N/A *Data available for three year period only due to inception date. 58 Compliance Checklist Total Fund As of March 31, 2015 ASB RE Intercontinental LBC Crescent Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. ✓ V ✓ V 2. Manager ranked within the top 40th percentile once over the last four quarters. V V ✓ V 3. Less than four consecutive quarters of under - performance relative to the benchmark. ✓ V v v 4. Three and five year down market capture ratio less than 100 %. ` i ✓ v V 5. Manager reports compliance with PFIA. ✓ V ✓ v *Data available for three year period only due to inception date. 59 7 The Bogdahn Group Your Service Team Contact Information ini Nick Rowlands Dave West i Department: Performance Measurement ih, Department: Consultant Team g 4 ai r Title: Performance Analyst Title: Senior Consultant Direct Phone: 407 -520 -5355 Direct Phone: 863 - 904 -0858 Email: NickRPbogdahngroup.com Email: DaveWpbogdahngroup.com Misha Bell Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road, Suite 600 Orlando, Florida 32811 j 4" Title: Internal Consultant Phone: 866 - 240 -7932 " Direct Phone: 863 -594 -1425 Service Team Group Email: ServiceTeam003 @bogdahngroup.com Email: Mishab 6 bogdahngroup.com 4aiii._ 10 1 T ( r \ BOGDAHN `-' GROUP 60 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 tams Ti L l� BOGDAHN GROUT? 60 Report Statistics Definitions and Descriptions • Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non - systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. R- Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R- Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk - adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk - adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. 1111 THE 61 r BOGDAHN Nir GROUP.. Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. 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 provided by Barclays. Barclays data rovided b Barcla s. Barcla s Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S &P Indices constitutes an offer of services in jurisdictions where S &P Indices does not have the necessary licenses. All information provided by S &P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or Y P Y P 9 Y Y Y Y P redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. THE 62 t_ BOGDAHN ` -� G ROUr- Disclosures Total Fund As of March 31, 2015 • Returns prior to 9/30/2009 are gross of fees. 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. THF. 62 (� BOGDAHN GROUP. Disclosures Total Fund As of March 31, 2015 • Returns prior to 9/30/2009 are gross of fees. TH E 63 ( � BOGDAHN GROUP. L 1 THE BOGDAHN GROUP, simplifj'ing your investment and fiduciary decisions Orlando '.`. 4901 Vineland Road, Suite 600 Orlando, Florida 32811 :. #, 866.240.7932 n fy Chicago Cleveland Milwaukee Pittsburgh