agenda - keys energy services · 2019-06-02 · retirement system for general employees of the...

R E T I R E M E N T S Y S T E M F O R T H E G E N E R A L E M P L O Y E E S O F T H E U T I L I T Y B O A R D O F

T H E C I T Y O F K E Y W E S T, F L O R I D A

AGENDA Pension Board of Trustees Meeting 1:30 p.m. – Tuesday, November 20, 2018

1. Call to Order and Roll Call

2. Set Agenda

3. Informational Items for Discussion:

a. Unaudited Financial Statement as of September 30, 2018 – Jack Wetzler b. Investment Performance Review – September 30, 2018 – Tim Nash, AndCo

Consulting c. Salem Trust Report - Service Report Summary for the Quarter Ended September

30, 2018 d. Date of Participation and Rehire Date – Larry Wilson, Plan Actuary and Ron Cohen,

Plan Attorney e. Trustee Positions Expiring Match 31, 2019

4. Consent Agenda*

a. Approve Minutes – Regular Meeting – August 21, 2018 b. Approve Minutes – Pension Board of Trustees Training – August 21, 2018 c. Approve Disbursement Report d. Approve Pension Benefits: Charles Bradford and Patricia Pazo

5. Action Items

a. Approve Experience Study for the Five Years Ended December 31, 2017 - Larry Wilson, Plan Actuary

b. Approve Replacing Sawgrass Asset Management with T Rowe as Money Manager

6. Other Business (that may legally come before the board)

7. Plan 2019 Meeting Dates: a. February 19 b. May 14 c. August 13 d. November 19

8. Public Comments

9. Adjournment

*Item is considered to be routine and enacted by one motion with no separate discussion, unless requested by a Pension Board Member or Citizen, in which event the item will be considered independently. DISABILITY INFORMATION: In accordance with the Americans with Disabilities Act and F.S.S. 286.26, persons with disabilities needing special accommodation to participate in this meeting should contact Jack Wetzler, Acting Plan Administrator, no later than seven days prior to the proceeding at 305-295-1013 for assistance. If hearing impaired, call the Florida Relay Service Numbers at 800-955-8771 (TDD) or 800-955-8770 (VOICE) for assistance. APPEAL NOTICE: If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, that person will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which appeal is to be based.

Retirement System for the General Employees For the Nine Months Ended September 30, 2018 of the Utility Board of the City of Key West Preliminary Unaudited Financial Statements Financial Executive Summary

The Change in Plan Net Position Restricted for Pension Benefits for the nine months ended September 30, 2018 was an increase of $4,967,948 compared to an increase of $7,528,695 for the nine months ended September 30, 2017. Total Net Position Restricted for Pension Benefits was $96,597,425 at September 30, 2018 compared to $88,445,267 at September 30, 2017. The fair market value of investments was $95,682,566 at September 30, 2018 compared to $87,203,657 at September 30, 2017. Net investment income was $6,659,102 for the nine months ended September 30, 2018 compared to net investment income of $8,969,906 for the same period of the prior year.

Page 1 of 5

Retirement System for General Employees of the Utility Board of the City of Key West

2018 2017

AssetsCash 414,066$ 793,714$

Receivables:Interest 75,600 92,840 Pending Trades 155,595 170,995 Misc Receivable - - Utility Board Contributions - - Total Receivables 231,195 263,835

Prepaid Expenses & Benefits 507,724 454,828

Investments:Cash and Cash Equivalents 1,185,382 885,080 Mutual Fund - Domestic Stock Index 16,303,686 9,403,119 Mutual Fund - International Stock Index 5,399,220 5,313,479 Mutual Fund - Global Bond 3,864,654 3,941,377 Mutual Fund - Asset Allocation Fund 4,652,529 4,482,884 Mutual Fund - International Stock Fund 6,068,163 5,455,642 Common Stock 40,043,270 39,049,153 Bonds and Notes 10,016,920 10,575,949 Real Estate Investment 8,378,745 7,986,917

Total Investments 95,912,570 87,093,600

Total Assets 97,065,555 88,605,977

Liabilities: Accrued Expenses & Benefits 6,932 6,932 Pending Trades Payable 461,198 153,778

Total Liabilities 468,130 160,710

Net Position Restricted for Pension Benefits 96,597,425$ 88,445,267$

Statements of Fiduciary Net Position

As of September 30,

(Preliminary - Unaudited)

Page 2 of 5

Retirement System for General Employees of the Utility Board of the City of Key West

2018 2017Increase

(Decrease)

Additions:Employer Contributions 3,016,204$ 2,845,029$ 171,175$ Miscellaneous Revenue 4,902 2,178 2,724

3,021,106 2,847,207 173,899 Investment Income:

Net Appreciation in Fair Value of Investments 5,224,654 7,763,710 (2,539,056) Interest 277,595 266,891 10,704 Dividends 1,064,836 893,074 171,762 Real Estate 278,358 279,117 (759)

6,845,443 9,202,792 (2,357,349) Less Investment Expenses (186,341) (232,886) 46,545

Net Investment Income/(Loss) 6,659,102 8,969,906 (2,310,804)

Total Additions 9,680,208 11,817,113 (2,136,906)

Deductions:Benefits 4,691,450 4,258,313 433,137 Administrative Expenses 20,809 30,105 (9,296)

Total Deductions 4,712,259 4,288,418 423,841

Net Increase/(Decrease) 4,967,948 7,528,695 (2,560,747)

Net Position Restricted for Pension Benefits:Beginning of Year 91,629,477 80,916,572 10,712,905

End of Period 96,597,425$ 88,445,267$ 8,152,158$

(Preliminary - Unaudited)Statement of Changes in Fiduciary Net Position

For the Nine Months Ended September 30,

Page 3 of 5

Galliard Cap Mgmt Sawgrass

Advisory Research

Vanguard Domestic Stock MF

Vanguard International

Stock MFGlobal Bond

MF Dana Intercontinental *American Core

Realty *

BlackRock Multi Asset

MF

Westwood Opportunity

MF

WCM Focused International Growth Fund Fred Alger Cambiar

Vanguard Equity

Income MF BrandywineChecking/ Bogdahn Total

Cash and Cash Equivalents 164,473$ 350,496$ -$ 211$ 2$ 1$ -$ -$ -$ 9,133$ -$ -$ 229,338$ 379,359$ -$ 52,369$ 1,185,382$ Mutual Fund - Domestic Stock Index Fund - - - 10,615,168 - - - - - - - - - - 5,688,518 - 16,303,686 Mutual Fund - Intl Stock Index Fund - - - - 5,399,220 - - - - - - - - - - - 5,399,220 Mutual Fund - Global Bond Fund - - - - - 3,864,654 - - - - - - - - - - 3,864,654 Mutual Fund - Asset Allocation Fund - - - - - - - - - 2,296,856 2,355,673 - - - - - 4,652,529 Mutual Fund - Intl Stock Fund - - - - - - - - - - - 6,068,163 - - - - 6,068,163 Common Stock - 11,235,009 - - - - - - - - - - 12,173,851 10,825,384 - 5,809,026 40,043,270 International Equities - - - - - - - - - - - - - - - - - Bonds and Notes 10,016,920 - - - - - - - - - - - - - - - 10,016,920 Real Estate - - - - - - - 4,855,955 3,522,790 - - - - - - - 8,378,745

Total Investments 10,181,393$ 11,585,505$ -$ 10,615,379$ 5,399,222$ 3,864,655$ -$ 4,855,955$ 3,522,790$ 2,305,989$ 2,355,673$ 6,068,163$ 12,403,189$ 11,204,743$ 5,688,518$ 5,861,395$ 95,912,570$

Interest/Dividends Receivable 55,175 5,218 - - - - - - - - - - 1,890 10,289 - 3,028 75,600 Pending Trades Receivable 9,734 - - - - - - - 42,645 - - - 73,289 29,927 - - 155,595 Pending Trades Payable (49,254) - - - - - - - - (9,133) - - (30,250) (372,561) - - (461,198) Total Fund Balance 10,197,048$ 11,590,723$ -$ 10,615,379$ 5,399,222$ 3,864,655$ -$ 4,855,955$ 3,565,435$ 2,296,856$ 2,355,673$ 6,068,163$ 12,448,118$ 10,872,398$ 5,688,518$ 5,864,423$ 95,682,566$

Percentage to Total Investments 10.7% 12.1% 0.0% 11.1% 5.6% 4.0% 0.0% 5.1% 3.7% 2.4% 2.5% 6.3% 13.0% 11.4% 5.9% 6.1% 100.0%

Investment Income/(Loss) (83,857)$ 1,517,306$ -$ 1,016,314$ (173,610)$ (6,963)$ (907,231)$ 361,350$ 197,135$ 21,349$ 35,649$ 331,654$ 1,983,402$ 1,039,580$ 307,523$ 1,040,475$ (20,974)$ 6,659,102$

Percentage to Total Income/(Loss) -1.3% 22.8% 0.0% 15.3% -2.6% -0.1% -13.6% 5.4% 3.0% 0.3% 0.5% 5.0% 29.8% 15.6% 4.6% 15.6% -0.3% 100.0%


Advisory Research



Stock MF Global Bond MF Dana IntercontinentalAmerican Core

Realty


MF


MF


Vanguard Equity


Cash and Cash Equivalents 82,024$ 173,150$ -$ -$ 3$ 2$ -$ 1$ 109,739$ -$ -$ 8,699$ -$ -$ 36,273$ 475,189$ 885,080$ Mutual Fund - Domestic Stock Index Fund - - - - 9,403,119 - - - - - - - - - - - 9,403,119 Mutual Fund - Intl Stock Index Fund - - - - - 5,313,479 - - - - - - - - - - 5,313,479 Mutual Fund - Global Bond Fund - - - - - - - 3,941,377 - - - - - - - - 3,941,377 Mutual Fund - Asset Allocation Fund - - - - - - - - - - - 2,238,092 2,244,792 - - - 4,482,884 Mutual Fund - Intl Stock Fund - - - - - - - - - - - - - 5,455,642 - - 5,455,642 Common Stock - 9,735,680 - - - - - - 10,324,037 - - - - - 10,035,829 8,953,607 39,049,153 International Equities - - - - - - - - - - - - - - - - - Bonds and Notes 10,575,949 - - - - - - - - - - - - - - - 10,575,949 Real Estate - - - - - - - - - 4,541,970 3,444,947 - - - - - 7,986,917

Total Investments 10,657,973$ 9,908,830$ -$ -$ 9,403,122$ 5,313,481$ -$ 3,941,378$ 10,433,776$ 4,541,970$ 3,444,947$ 2,246,791$ 2,244,792$ 5,455,642$ 10,072,102$ 9,428,796$ 87,093,600$

Interest/Dividends Receivable 52,561 5,990 - - - - - - 17,997 - - - - - 2,848 13,444 92,840 Pending Trades Receivable 24,962 - - - - - - - - - 41,862 - - - 104,171 - 170,995 Pending Trades Payable (80,565) - - - - - - - - - - (8,699) - - (64,514) - (153,778) Total Fund Balance 10,654,931$ 9,914,820$ -$ -$ 9,403,122$ 5,313,481$ -$ 3,941,378$ 10,451,773$ 4,541,970$ 3,486,809$ 2,238,092$ 2,244,792$ 5,455,642$ 10,114,607$ 9,442,240$ 87,203,657$

Percentage to Total Investments 12.2% 11.4% 0.0% 0.0% 10.8% 6.1% 0.0% 4.5% 12.0% 5.2% 4.0% 2.6% 2.6% 6.3% 11.6% 10.8% 100.0%

Investment Income/(Loss) 278,199$ 1,295,840$ 89,494$ -$ 1,151,033$ 944,476$ -$ 175,023$ 813,120$ 230,503$ 180,046$ 150,908$ 154,012$ 1,084,599$ 1,959,628$ 502,132$ (39,107)$ 8,969,906$

Percentage to Total Income/(Loss) 3.1% 14.4% 1.0% 0.0% 12.8% 10.5% 0.0% 2.0% 9.1% 2.6% 2.0% 1.7% 1.7% 12.1% 21.8% 5.6% -0.4% 100.0%

2017

2018

Retirement System for General Employees of the Utility Board of the City of Key West Schedule of Investments at Fair Value

September 30, 2018 and 2017

Page 4 of 5

Utility Board of the City of Key WestSchedule of Investment Income

For the Nine Months Ended September 30, 2018 and 2017

Galliard

Cap Mgmt SawgrassAdvisory Research



Stock MFGlobal Bond

MF Dana Intercontinental American Core

Realty


MF


MF


Vanguard Equity

Income MF Brandywine

Checking/ AndCo/BONY/

Salem Total

Net Appreciation (Depreciation) of Investments (266,323)$ 842,661$ -$ 759,915$ (272,628)$ (139,796)$ (2,856,462)$ 219,418$ 94,370$ (66,161)$ 692$ 331,654$ 945,004$ 239,334$ 229,617$ 879,694$ -$ 940,989$ Gain/(Loss) on Sale of Investments (55,359) 526,476 - 121,752 - - 1,898,436 (14,820) 31,031 - - - 973,336 690,308 - 112,505 - 4,283,665 Interest 250,541 4,424 - 207 - - 349 - - - - - 2,862 4,746 - 336 14,129 277,595 Dividends - 177,801 - 134,440 99,018 132,833 67,827 - - 87,510 34,957 - 80,047 117,527 77,906 54,970 - 1,064,836 Real Estate Income - - - - - - - 177,320 101,038 - - - - - - - - 278,358 Total Investment Activity (71,141) 1,551,362 - 1,016,314 (173,610) (6,963) (889,850) 381,918 226,439 21,349 35,649 331,654 2,001,249 1,051,915 307,523 1,047,505 14,129 6,845,443

Investment Fees (12,716) (34,056) - - - - (17,382) (20,568) (29,304) - - - (17,847) (12,335) - (7,030) (35,103) (186,341)

Total Net Investment Income (83,857)$ 1,517,306$ -$ 1,016,314$ (173,610)$ (6,963)$ (907,231)$ 361,350$ 197,135$ 21,349$ 35,649$ 331,654$ 1,983,402$ 1,039,580$ 307,523$ 1,040,475$ (20,974)$ 6,659,102$


Advisory Research



Stock MF Global Bond MF Dana IntercontinentalAmerican Core

Realty


MF


MF


Vanguard Equity


Net Appreciation (Depreciation) of Investments 55,140$ 780,059$ (1,117,677)$ -$ 1,030,430$ 847,230$ -$ 81,796$ 15,704$ 49,421$ 81,100$ 75,024$ 125,068$ 1,084,599$ 1,620,377$ 462,190$ -$ 5,190,461$ Gain/(Loss) on Sale of Investments (20,047) 434,227 1,187,416 - - - - - 647,876 24,343 25,864 - - - 290,198 (16,628) - 2,573,249 Interest 256,393 1,045 296 - - - - - 395 - - - - - 517 1,173 7,072 266,891 Dividends - 112,166 40,024 - 120,603 97,246 - 93,227 180,165 - - 75,884 28,944 - 79,837 64,978 - 893,074 Real Estate Income - - - - - - - - - 177,308 101,809 - - - - - - 279,117 Total Investment Activity 291,486 1,327,497 110,059 - 1,151,033 944,476 - 175,023 844,140 251,072 208,773 150,908 154,012 1,084,599 1,990,929 511,713 7,072 9,202,792

Investment Fees (13,287) (31,657) (20,565) - - - - - (31,020) (20,569) (28,727) - - - (31,301) (9,581) (46,179) (232,886)

Total Net Investment Income 278,199$ 1,295,840$ 89,494$ -$ 1,151,033$ 944,476$ -$ 175,023$ 813,120$ 230,503$ 180,046$ 150,908$ 154,012$ 1,084,599$ 1,959,628$ 502,132$ (39,107)$ 8,969,906$

2018

2017

Retirement System for General Employees of the

Page 5 of 5

<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2587" DocumentTypeId="1" EffectiveDate="09/30/2018" Interval="3" Description="Quarterly Report" />

Investment Performance Review

Period Ending September 30, 2018

Retirement System for the GeneralEmployees of the Utility Board of Key

West, Florida

3rd Quarter 2018 Market Environment

Page 1

Market returns were mixed across major equity and fixed income indices forthe 3rd quarter of 2018 with many themes from the 2nd quarter repeatingduring the current period. Broad domestic equity indices pushed higher oncontinued strength in both economic and corporate earnings data. Corporateearnings continue to benefit from fiscal stimulus tailwinds in the form of the late2017 tax reform. International indices underperformed domestic indices duringthe period, posting more muted returns in US dollar (USD) terms, as investorsweighed relatively soft economic data, a strengthening USD and geopoliticalconcerns, especially around global trade relations. Fixed income returns wereflat for the quarter as interest rates continued to rise. Domestic stocks rose asconcerns around ongoing monetary policy tightening by the Federal Reserve(Fed) and an escalating trade war between the US and China were notsubstantial enough to dampen investor enthusiasm around the ongoingstrength of the US economy. The US stock market represented by the Russell3000 Index returned 7.1% and 17.6% for the quarter and 1-year periodrespectively.

International equity returns finished the quarter slightly positive with the MSCIACWI ex US Index returning 0.7%. Developed market stocks pushed higherthrough the period, however, relatively subdued economic growth and ongoingpolitical and trade uncertainty tempered returns versus domestic equities. Thedeveloped market MSCI EAFE Index gained 1.4% during the quarter.Emerging market stocks struggled in comparison, posting negative returns forthe period, as trade tensions grew between the US and China. In addition, astrengthening USD caused headwinds for most international markets, butcaused particular difficulties for emerging market countries that issue debt inUSD. The MSCI Emerging Markets Index posted a small decline of -1.1%during the 3rd quarter. The relative outperformance of developed markets canalso be seen in the 1-year period with the MSCI EAFE and MSCI EmergingMarkets indices returning 2.7% and -0.8% respectively.

Interest rates on the US Treasury Yield Curve continued their year-to-date riseduring the 3rd quarter as investor expectations for further Fed tightening ofmonetary policy increased during the period. The yield curve did flatten slightlyas interest rates had the greatest increase in short-term maturities, but overall,the shift in rates was fairly consistent throughout the entire curve. The Fed didimplement another interest rate increase following their September meetingciting the continued strength of the US economy and stable inflation. Thebroad market Bloomberg Barclays US Aggregate Index was flat for the quarterreturning 0.0% and is slightly negative over the 1-year period returning -1.2%.Corporate issues rebounded following underperformance during the first half ofthe year and were the only investment grade sector to post a positive returnduring the quarter, as they benefitted from tightening credit spreads and stronginvestor demand.

Source: Investment Metrics

The Market EnvironmentMajor Market Index Performance

As of September 30, 2018

0.5%

1.0%-0.1%

-0.8%-0.6%

0.0%

3.6%5.0%

7.4%7.1%

7.7%

-1.1%1.4%

0.7%

-2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

3-Month T-Bill

Bbg Barclays Corp IGBbg Barclays MBS

Bbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US Agg

Russell 2000Russell MidCap

Russell 1000Russell 3000

S&P 500

MSCI Emerg MktsMSCI EAFE

MSCI ACWxUS

Quarter Performance

1.6%

-1.2%-0.9%

0.4%-1.6%

-1.2%

15.2%14.0%

17.8%17.6%17.9%

-0.8%2.7%

1.8%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

3-Month T-Bill

Bbg Barclays Corp IGBbg Barclays MBS

Bbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US Agg

Russell 2000Russell MidCap

Russell 1000Russell 3000

S&P 500

MSCI Emerg MktsMSCI EAFE

MSCI ACWxUS

1-Year Performance

Page 2

Source: Investment Metrics

The Market EnvironmentDomestic Equity Style Index Performance


US equity index returns were positive across the style and capitalizationspectrum during the 3rd quarter of 2018. US equity markets were pushedhigher by the ongoing strength in US economic data and corporate earnings.Positive data releases in GDP, unemployment, retail sales, consumerconsumption and investor sentiment highlighted the continued health of the USeconomy. Corporate earnings released during the quarter were alsoimpressive. Earnings reported for S&P 500 companies were up over 20% on ayear-over-year basis for the second straight quarter as corporate profitscontinued to benefit from the new tax code. The current expansion in USequity markets now marks the longest bull market in history. While the positiveeconomic data drove returns through the quarter, trade negotiations with Chinabroke down with both the US and China instituting several rounds of new tariffsduring the period. Currently the US is imposing tariffs on $250 billion ofChinese imports with China placing tariffs on $110 billion worth of goods.Further action has been threatened by both countries. While negotiations withChina have been unsuccessful, progress was made in the renegotiation of theNorth American Free Trade Agreement (NAFTA) and discussions with theEuropean Union (EU) appear to be moving ahead productively.

During the quarter, large cap stocks outperformed mid and small cap equitiesacross growth, value and core indices. The large cap Russell 1000 Indexreturned 7.4% for the quarter versus a 3.6% return for the Russell 2000 Index.The Russell 1000 benefitted from strong performance from some of its largestexposures. Apple Inc, Microsoft Corp and Amazon.com Inc alone make upover 10% of the index and posted quarterly returns of 22.4%, 16.4% and17.8% respectively. Those same three stocks have gained 48.7%, 56.3% and108.4% over the 1-year period. This strong performance from some of theindex’s largest constituents has helped large caps outperform small caps overthe 1-year period as well with the Russell 1000 returning 17.8% over thetrailing year while the Russell 2000 posted a still solid return of 15.2%.

Growth stocks outperformed value stocks across the market cap spectrumduring the 3rd quarter. The large cap Russell 1000 Growth Index was the bestperforming style index for the period returning a notable 9.2% for the quarter.The outperformance of growth indices relative to value indices is also evidentover the 1-year period as growth indices continue to show significantoutperformance relative to their value counterparts. The returns for growthindices more than double the returns of the corresponding value indices overthe last 12 months. Growth benchmarks benefitted from larger exposures tomore cyclical names within the information technology, consumerdiscretionary, health care and industrials sectors. They also benefitted fromunderweights to more defensive sectors such as REITs and utilities.

5.5%

3.6%

1.6%

7.6%

5.0%

3.3%

9.2%

7.4%

5.7%

8.9%

7.1%

5.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

2000 Growth

2000 Index

2000 Value

MidCap Growth

MidCap Index

MidCap Value

1000 Growth

1000 Index

1000 Value

3000 Growth

3000 Index

3000 Value

Quarter Performance - Russell Style Series

21.1%

15.2%

9.3%

21.1%

14.0%

8.8%

26.3%

17.8%

9.5%

25.9%

17.6%

9.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

2000 Growth

2000 Index

2000 Value

MidCap Growth

MidCap Index

MidCap Value

1000 Growth

1000 Index

1000 Value

3000 Growth

3000 Index

3000 Value

1-Year Performance - Russell Style Series

Page 3

Both S&P Dow Jones Indices and MSCI made changes to the Global IndustryClassification Standard (GICS) sector configurations of their indices, creating anew GICS sector classification called Communication Services which replacedthe Telecommunications sector on September 28, 2018. The CommunicationServices sector is comprised of companies in the Telecommunications sector,as well as certain companies formerly classified as Consumer Discretionaryand Information Technology. As a result, the sector, went from a weighting ofabout 2% of the Russell 1000 Index to almost 10% post reclassification.Notable names now classified under Communication Services include Netflix,Alphabet, Facebook and Disney. This is just the second change to the GICSclassifications since 1999.

Sector performance was broadly positive across large cap sectors for the 3rdquarter. Ten of eleven sectors had positive returns for the quarter with fouroutpacing the Russell 1000 Index return. The consumer discretionary sectorcontinues to do well on the back of strong retail sales and increased consumerspending, gaining 7.6% for the period. Health care and technology stocksincreased 14.3% and 12.5% during the quarter respectively, with companies inboth sectors reporting strong earnings. Industrials benefitted from continuedeconomic strength returning 9.7%. The largest detractors for the quarter werethe materials, real estate and energy sectors which returned -0.1%, 0.6% and0.9% respectively. Over the trailing 1-year period, all large cap all sectors werepositive. The information technology and consumer discretionary sectors werethe best performers, returning over 30% over the last 12 months, and six ofeleven sectors have returns over 10% for the year.

Quarterly results for small cap sectors were generally lower relative to theirlarge capitalization counterparts. Nine of eleven sectors had positive returnsduring the period with six of eleven economic sectors outpacing the Russell2000 Index return for the quarter. Energy, consumer staples and real estateposted negative returns for the period returning -2.9%, -1.4% and -0.5%respectively. Communications services and health care were the bestperformers returning 12.6% and 7.7%. Over the trailing 1-year period, alleleven sectors posted gains. Health care stocks were the best performerswithin the Russell 2000 for the trailing year returning a solid 29.1%.Communication services, technology, and consumer discretionary also hadparticularly robust returns for the 1-year period.

Using S&P 500 sector valuations as a proxy for the market, forward P/E ratiosfor seven of the eleven GICS sectors were higher than their long-termaverages at quarter-end. Using these historical P/E measures, the utilities,consumer discretionary and real estate sectors appear the most extended. Incontrast the financials, technology and health care sectors were trading at adiscount to their long-term average P/E ratios.

The Market EnvironmentGICS Sector Performance & (Sector Weight)


Source: Morningstar DirectAs a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector.

4.1%

4.7%

3.7%

37.3%11.8%

18.7%

8.6%

15.4%

3.6%

31.2%

13.3%

2.4%

0.6%

-0.1%

12.5%

9.7%

14.3%

4.1%

0.9%

5.5%

7.6%

1.4%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

Utilities (2.8%)

Real Estate (3.5%)

Materials (2.9%)

Info Technology (20.6%)

Industrials (10.0%)

Health Care (13.9%)

Financials (13.9%)

Energy (5.9%)

Consumer Staples (6.4%)

Consumer Disc (10.3%)

Comm Services (9.7%)

Russell 1000 Quarter 1-Year

6.4%

2.9%

5.4%

19.9%

11.9%

29.1%7.8%

11.0%

12.1%

22.6%

20.8%

3.8%

-0.5%

1.1%

5.8%

4.4%

7.7%

0.9%-2.9%

-1.4%

3.7%

12.6%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Utilities (3.1%)

Real Estate (7.1%)

Materials (4.3%)

Info Technology (13.8%)

Industrials (15.2%)

Health Care (15.8%)

Financials (18.0%)

Energy (4.9%)

Consumer Staples (2.7%)

Consumer Disc (12.2%)

Comm Services (3.0%)

Russell 2000 Quarter 1-Year

Page 4

The Market EnvironmentTop 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000


Source: Morningstar Direct

Top 10 Weighted Stocks Top 10 Weighted Stocks

Russell 1000 Weight 1-Qtr Return

1-Year Return Sector Russell 2000 Weight 1-Qtr

Return1-Year Return Sector

Apple Inc 3.97% 22.4% 48.7% Information Technology Five Below Inc 0.31% 33.1% 137.0% Consumer DiscretionaryMicrosoft Corp 3.15% 16.4% 56.3% Information Technology Etsy Inc 0.27% 21.8% 204.4% Consumer DiscretionaryAmazon.com Inc 2.96% 17.8% 108.4% Consumer Discretionary Integrated Device Technology Inc 0.27% 47.5% 76.9% Information TechnologyBerkshire Hathaway Inc B 1.51% 14.7% 16.8% Financials LivaNova PLC 0.27% 24.2% 76.9% Health CareFacebook Inc A 1.42% -15.4% -3.8% Communication Services Haemonetics Corp 0.26% 27.8% 155.4% Health CareJPMorgan Chase & Co 1.37% 8.9% 20.7% Financials Teladoc Health Inc 0.25% 48.8% 160.5% Health CareJohnson & Johnson 1.35% 14.6% 9.1% Health Care Ligand Pharmaceuticals Inc 0.25% 32.5% 101.6% Health CareAlphabet Inc Class C 1.32% 7.0% 24.4% Communication Services HubSpot Inc 0.24% 20.4% 79.6% Information TechnologyAlphabet Inc A 1.31% 6.9% 24.0% Communication Services Primerica Inc 0.23% 21.3% 49.2% FinancialsExxon Mobil Corp 1.31% 3.8% 7.9% Energy HealthEquity Inc 0.22% 25.7% 86.7% Health Care

Top 10 Performing Stocks (by Quarter) Top 10 Performing Stocks (by Quarter)




Advanced Micro Devices Inc 0.10% 106.1% 142.3% Information Technology CareDx Inc 0.04% 135.7% 679.7% Health CareSquare Inc A 0.10% 60.6% 243.7% Information Technology Reata Pharmaceuticals Inc A 0.07% 133.8% 162.9% Health CarePaycom Software Inc 0.03% 57.2% 107.3% Information Technology Invitae Corp 0.05% 127.6% 78.5% Health CareTwilio Inc A 0.02% 54.0% 189.0% Information Technology RigNet Inc 0.01% 97.6% 18.3% EnergyAtlassian Corporation PLC A 0.03% 53.8% 173.5% Information Technology Tandem Diabetes Care Inc 0.10% 94.6% 486.8% Health CareMolina Healthcare Inc 0.03% 51.8% 116.3% Health Care Health Insurance Innovations Inc 0.03% 90.6% 325.2% FinancialsDexCom Inc 0.05% 50.6% 192.4% Health Care Funko Inc Class A 0.01% 88.8% N/A Consumer DiscretionaryMatch Group Inc 0.01% 49.5% 149.7% Communication Services LSB Industries Inc 0.01% 84.5% 23.2% MaterialsFortinet Inc 0.05% 47.8% 157.4% Information Technology Viking Therapeutics Inc 0.04% 83.6% 812.0% Health CareIAC/InterActiveCorp 0.06% 42.1% 84.3% Communication Services Ra Pharmaceuticals Inc 0.01% 81.8% 23.9% Health Care

Bottom 10 Performing Stocks (by Quarter) Bottom 10 Performing Stocks (by Quarter)




Floor & Decor Holdings Inc 0.01% -38.8% -22.5% Consumer Discretionary Vital Therapies Inc 0.00% -96.0% -94.5% Health CareTwitter Inc 0.07% -34.8% 68.7% Communication Services GTx Inc 0.00% -89.7% -81.4% Health CareIPG Photonics Corp 0.02% -29.3% -15.7% Information Technology Ampio Pharmaceuticals Inc 0.00% -76.9% -16.9% Health CareVisteon Corp 0.01% -28.1% -24.9% Consumer Discretionary Innovate Biopharmaceuticals Inc 0.01% -71.0% -2.4% Health CareZillow Group Inc A 0.01% -26.0% 10.1% Communication Services Zion Oil & Gas Inc 0.00% -68.4% -62.5% EnergyZillow Group Inc C 0.02% -25.1% 10.0% Communication Services Endologix Inc 0.01% -66.3% -57.2% Health CareWestern Digital Corp 0.06% -23.7% -30.4% Information Technology Lannett Co Inc 0.01% -65.1% -74.3% Health CareWynn Resorts Ltd 0.05% -23.7% -13.3% Consumer Discretionary Maiden Holdings Ltd 0.01% -62.6% -61.1% FinancialsExtraction Oil & Gas Inc 0.00% -23.1% -26.6% Energy Diebold Nixdorf Inc 0.02% -62.3% -80.1% Information TechnologyTesla Inc 0.13% -22.8% -22.4% Consumer Discretionary Sears Holdings Corp 0.00% -59.2% -86.7% Consumer Discretionary

Page 5

Source: MSCI Global Index Monitor (Returns are Net)

Broad international equity returns were mixed for the quarter. Most developedmarkets were positive in local currency and USD terms whereas emergingmarkets were negative in both local currency and USD terms. Performancewas largely driven by the same catalysts as the US equity markets for thesecond straight quarter. We saw global macroeconomic data slow, but remaingenerally positive through the period, with returns being tempered by globaltrade tensions and ongoing political uncertainty. The USD continued tostrengthen against most currencies for the period as relatively strong USeconomic fundamentals and the continued divergence in global monetarypolicy hurt US investors in international markets. The MSCI ACWI ex US Indexgained 1.5% in local currency terms and 0.7% in USD terms during the 3rdquarter. Returns over the 1-year period are modestly positive in both localcurrency and USD terms with the MSCI ACWI ex US returning 4.5% and 1.8%respectively.

Third quarter results for developed market international indices were positivein local currency terms and USD terms with the MSCI EAFE Index returning2.4% and 1.4% respectively. Returns were dampened for US investors ascontinued strength in the USD pushed returns lower. Developed markets werepushed higher by broadly positive, but slowing, global economic and earningsdata despite several significant political events in Europe during the quarter.Concerns over a “no deal” Brexit and worries over a pending budget approvalin Italy weighed on returns, while markets were encouraged by progress intrade negotiations between the US and the eurozone and signs of continuedpolitical stability in Japan. The MSCI EAFE Index returned 5.1% and 2.7% forthe last twelve months in local currency and USD terms respectively.

Emerging markets underperformed relative to developed markets for the 3rdquarter, posting a flat return in local currency terms that was exacerbated bythe rising USD. The MSCI Emerging Markets Index returned 0.0% and -1.1%in local currency and USD terms respectively. Returns in emerging marketswere the hurt by the deterioration in trade negotiations between the US andChina followed by several rounds of new tariffs enacted by both countries.Emerging market stocks were also negatively affected by rising US interestrates coupled with an appreciating USD. Many emerging market countries andcompanies issue debt denominated in USD and the combination of higherinterest rates and a relatively weaker local currency can put stress on thebalance sheets of these borrowers, especially those heavily dependent onexternal capital. This was particularly problematic for Turkey, Argentina andSouth Africa during the 3rd quarter with Argentina having to expedite theirrequest for an emergency bailout of $50 billion from the World Monetary Fund.In positive news, Mexico and the US made progress toward the renegotiationof NAFTA. One year returns for the MSCI Emerging Market Index were 2.7%in local currency terms and -0.8% in USD terms.

The Market EnvironmentInternational and Regional Market Index Performance (Country Count)

As September 30, 2018

5.6%

-1.2%

1.8%

0.0%

4.4%

1.2%

2.4%

2.1%

1.5%

4.8%

-1.8%

-1.6%

-1.1%

2.3%

0.8%

1.4%

1.3%

0.7%

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

EM Latin Amer (5)

EM Asia (9)

EM EMEA (10)

Emerging Mkt (24)

Pacific (5)

Europe & ME (16)

EAFE (21)

WORLD x US (22)

AC World x US (46)

Quarter Performance USD Local Currency

4.8%

1.9%

5.6%

2.7%

10.7%

2.1%

5.1%

5.1%

4.5%

-9.1%

1.0%

-2.2%

-0.8%

8.2%

-0.2%

2.7%

2.7%

1.8%

-10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

EM Latin Amer (5)

EM Asia (9)

EM EMEA (10)

Emerging Mkt (24)

Pacific (5)

Europe & ME (16)

EAFE (21)

WORLD x US (22)

AC World x US (46)

1-Year Performance USD Local Currency

Page 6

The Market EnvironmentUS Dollar International Index Attribution & Country Detail


Source: Morningstar Direct, MSCI Global Index Monitor (Returns are Net in USD)As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector.

MSCI-EAFE MSCI-ACWIxUS Quarter 1- YearCountry Weight Weight Return ReturnJapan 24.6% 16.9% 3.7% 10.2%United Kingdom 17.5% 12.0% -1.7% 2.9%France 11.2% 7.7% 2.8% 4.2%Germany 9.4% 6.5% -0.6% -5.4%Switzerland 8.3% 5.7% 7.3% 1.6%Australia 6.8% 4.7% -0.9% 4.4%Hong Kong 3.5% 2.4% -1.0% 2.9%Netherlands 3.3% 2.3% -1.5% -1.6%Spain 3.0% 2.0% -2.4% -9.7%Sweden 2.7% 1.9% 7.0% -3.3%Italy 2.3% 1.6% -4.5% -8.9%Denmark 1.7% 1.2% 2.3% -4.2%Singapore 1.3% 0.9% 2.2% 6.9%Finland 1.1% 0.7% 3.2% 10.3%Belgium 1.0% 0.7% -5.2% -11.8%Norway 0.8% 0.5% 6.7% 13.7%Israel 0.6% 0.4% 5.1% 14.9%Ireland 0.5% 0.4% -5.4% -6.1%Austria 0.2% 0.2% 0.2% -3.1%New Zealand 0.2% 0.2% 2.4% 4.4%Portugal 0.2% 0.1% -0.6% 1.7%Total EAFE Countries 100.0% 68.7% 1.4% 2.7%Canada 6.7% 0.8% 1.9%Total Developed Countries 75.3% 1.3% 2.7%China 7.6% -7.5% -2.2%Korea 3.7% 0.7% 1.4%Taiwan 3.0% 6.5% 9.7%India 2.1% -2.3% 1.1%Brazil 1.5% 6.1% -14.0%South Africa 1.5% -7.4% -5.1%Russia 0.9% 6.2% 13.7%Mexico 0.8% 6.9% -4.4%Thailand 0.6% 13.6% 15.2%Malaysia 0.6% 3.8% 7.6%Indonesia 0.5% 2.0% -10.4%Poland 0.3% 10.6% -5.0%Chile 0.3% -2.0% -5.7%Philippines 0.2% 1.0% -15.6%Qatar 0.2% 12.8% 25.3%United Arab Emirates 0.2% 3.1% -6.9%Turkey 0.2% -20.5% -41.7%Colombia 0.1% -2.5% 10.0%Peru 0.1% -2.1% 12.2%Greece 0.1% -17.6% -14.8%Hungary 0.1% 4.7% -5.0%Czech Republic 0.1% 4.0% 12.8%Egypt 0.0% -6.8% -7.1%Pakistan 0.0% -4.9% -20.6%Total Emerging Countries 24.7% -1.1% -0.8%Total ACWIxUS Countries 100.0% 0.7% 1.8%

MSCI - EAFE Sector Weight Quarter Return 1-Year ReturnCommunication Services 5.4% 3.3% -2.4%Consumer Discretionary 11.1% -0.5% 3.3%Consumer Staples 11.3% -0.1% 2.5%Energy 6.0% 3.5% 24.6%Financials 19.8% 0.9% -4.0%Health Care 10.9% 5.6% 7.1%Industrials 14.3% 2.6% 4.2%Information Technology 6.2% 0.3% 7.4%Materials 8.1% 0.4% 5.1%Real Estate 3.5% -3.0% 1.0%Utilities 3.3% -0.6% 0.7%Total 100.0% 1.4% 2.7%

MSCI - ACWIxUS Sector Weight Quarter Return 1-Year ReturnCommunication Services 7.6% -3.0% -4.1%Consumer Discretionary 10.7% -3.2% -1.4%Consumer Staples 9.7% -0.6% 1.6%Energy 7.1% 4.1% 18.3%Financials 22.0% 1.7% -1.9%Health Care 8.3% 4.5% 7.6%Industrials 11.7% 2.8% 3.8%Information Technology 8.5% 1.3% 5.6%Materials 8.2% 0.4% 5.2%Real Estate 3.2% -3.5% -2.7%Utilities 3.0% -0.9% -1.2%Total 100.0% 0.7% 1.8%

MSCI - Emerging Mkt Sector Weight Quarter Return 1-Year ReturnCommunication Services 14.8% -9.4% -6.0%Consumer Discretionary 11.3% -9.9% -13.2%Consumer Staples 6.7% -2.9% -1.9%Energy 6.3% 14.5% 26.0%Financials 23.3% 1.5% 0.4%Health Care 3.1% -7.2% 11.4%Industrials 5.3% 2.5% -4.3%Information Technology 15.9% 2.2% 2.3%Materials 7.8% 4.5% 8.6%Real Estate 2.9% -5.6% -15.1%Utilities 2.5% -1.9% -5.4%Total 100.0% -1.1% -0.8%

Page 7

Source: Bloomberg

The Market EnvironmentDomestic Bond Sector & Broad/Global Bond Market Performance (Duration)


Broad fixed income benchmarks had mixed results during the 3rd quarter.Interest rates rose across all maturities on the US Treasury Yield Curve. TheFederal Open Market Committee (FOMC), decided to increase short-terminterest rates by 25 basis points at their September meeting citing continuedstrength in the economy and stable inflation. This is the third rate hike of 2018.The current Fed Funds Rate target range sits at 2.00%-2.25%. The FOMCalso changed the language used in its policy statement, removing the word“accommodative”, which investors took as a signal that the Fed plans tocontinue its trend of monetary policy tightening. The yield curve continued toflatten, although very gradually, as short-term yields rose at a greater rate thanlong-term yields during the quarter. The difference in yields between the 2-year and 10-year Treasury now sits at just 0.24%. As the curve continues toflatten, it moves closer to becoming “inverted”, which happens when short-term maturities have greater yields than long-term securities. Historically, aninverted yield curve has signaled a greater probability of a recession. The Fedis also continuing the reduction of the size of its balance sheet by slowing itspace of reinvestment as the securities it holds mature. The BloombergBarclays US Aggregate Index was flat during the quarter, posting a 0.0%return. Over the 1-year period the index has fallen -1.2%.

Within investment grade credit, lower quality corporate issues outperformedhigher quality issues as credit spreads tightened steadily over the quarter. Onan absolute basis, without negating the duration differences in the sub-indices,Baa rated credit was the best performing investment grade credit qualitysegment returning 1.4% for the quarter, while AAA was the worst performing,falling -0.3%. High yield debt outperformed relative to investment grade credit,returning 2.0%, as spreads tightened to a greater degree for these issues andthe index benefitted from less sensitivity to rising interest rates due to its lowerduration. Returns are negative for all investment grade quality segments whenviewed over the 1-year period while high yield continues to outperform with areturn of 3.0%.

Of the Bloomberg Barclays US Aggregate Index’s three broad sectors, USinvestment grade corporates were the best performing investment gradesector through the quarter, returning 1.0%, and the only sector to post apositive return for the period. Corporate credit outperformed as credit spreadstightened. Demand for these securities outweighed supply for the perioddespite considerable new issuance and a headwind from the sectors higherduration relative to other index sectors. Treasuries were the worst performingsector posting a -0.6% return. Over the 1-year period, all three broadinvestment grade sectors posted losses with mortgages, investment gradecredit and Treasuries falling -0.9%, -1.2% and -1.6% respectively.

-0.8%-1.7%

0.1%

0.0%

-0.8%

1.0%

-0.1%

-0.6%

2.4%

1.4%

0.7%

0.3%

-0.3%

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Multiverse (6.8)

Global Agg x US (7.8)

Intermediate Agg (4.4)

Aggregate (6.0)

U.S. TIPS (5.4)

U.S. Corporate IG (7.2)

U.S. Mortgage (5.3)

U.S. Treasury (6.0)

U.S. High Yield (3.8)

Baa (7.4)

A (7.2)

AA (5.9)

AAA (5.6)

Quarter Performance

-1.3%

-1.5%

-0.9%

-1.2%

0.4%

-1.2%

-0.9%

-1.6%

3.0%

-0.8%

-1.6%

-0.6%

-1.3%

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%

Multiverse (6.8)

Global Agg x US (7.8)

Intermediate Agg (4.4)

Aggregate (6.0)

U.S. TIPS (5.4)

U.S. Corporate IG (7.2)

U.S. Mortgage (5.3)

U.S. Treasury (6.0)

U.S. High Yield (3.8)

Baa (7.4)

A (7.2)

AA (5.9)

AAA (5.6)

1-Year Performance

Page 8

Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)

The Market EnvironmentMarket Rate & Yield Curve Comparison


Global fixed income indices continue to struggle relative to their domesticcounterparts, underperforming during the 3rd quarter. These indices havelower yields and their relatively high duration acted as a headwind toperformance in the current quarter as interest rates increased. The returns ofthese indices are also significantly influenced by fluctuations in their currencydenomination relative to the USD. During the 3rd quarter the USDstrengthened against most other currencies, negatively impacting the returnson global bond indices. The return on global bonds, as represented by theBloomberg Barclays Global Aggregate ex US Index, was -1.7% and -1.5% forthe quarter and 1-year period respectively. As the global economy continues torecover, several international central banks have started to move toward lessaccommodative postures. Notably, the ECB, began to slow its monthly bondpurchase program in September, reducing new purchases to 15 billion europer month from 30 billion euro per month, as well as forecasting an end to theprogram by the end of the year assuming the eurozone recovery continues toflourish. However, they have indicated a continuation of reinvestment inmaturing securities and would likely not raise interest rates from current levelsuntil summer 2019. The Bank of England increased interest rates by 0.25%during the quarter citing improvement in their near-term economic outlook andthe Bank of Japan has changed its policy to allow flexibility for future tighteningin the future.

Much of the index performance detailed in the bar graphs on the previouspage is visible on a time series basis by reviewing the line graphs to the right.The ‘1-Year Trailing Market Rates’ chart illustrates that the 10-year Treasuryyield (green line) rose steadily during the end of the 3rd quarter, ending theperiod at 3.05%. The blue line illustrates changes in the BAA OAS (OptionAdjusted Spread). This measure quantifies the additional yield premium thatinvestors require to purchase and hold non-Treasury issues. This lineillustrates a steady increase in credit spreads through the first two quarters of2018, followed by a smooth decline during the 3rd quarter. This decline isequivalent to an interest rate decrease on corporate bonds, which produces anadditional tailwind for corporate bond index returns. These credit spreads havetightened by about 20 basis points over the last 3-months. The green bandacross the graph illustrates the gradual increase in the Federal Funds Rate(three increases in the last twelve months) due to the continued unwinding ofaccommodative US monetary policy.

The lower graph provides a snapshot of the US Treasury yield curve at the endof each of the last four calendar quarters. As mentioned, the yield curvecontinues to flatten as yields on shorter-term maturities have risen more thaninterest rates on the long end of the curve. The upward momentum of interestrates as well as a general flattening of the yield curve are clearly visible overthe last twelve months.

Fed Funds Rate

TED Spread

3-Month Libor

BAA OAS

10yr Treasury

10yr TIPS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

1-Year Trailing Market Rates

Fed Funds Rate TED Spread3-Month Libor BAA OAS10yr Treasury 10yr TIPS

12/31/2017

3/31/20186/30/2018

9/30/2018

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr

Treasury Yield Curve

12/31/2017 3/31/20186/30/2018 9/30/2018

Page 9

Asset Allocation By Segment as ofJune 30, 2018 : $91,150,330

Asset Allocation By Segment as ofSeptember 30, 2018 : $95,639,922

Allocation

Segments Market Value Allocation

Domestic Equity 52,031,410 57.1¢

International Equity 11,260,426 12.4¢

Domestic Fixed Income 10,086,618 11.1¢

Global Fixed Income 3,825,570 4.2¢

Real Estate 8,286,096 9.1¢

Global Tactical Asset Allocation 4,531,722 5.0¢

Cash Equivalent 1,128,487 1.2¢

Allocation

Segments Market Value Allocation

Domestic Equity 56,346,956 58.9¢

International Equity 11,467,383 12.0¢

Domestic Fixed Income 10,016,920 10.5¢

Global Fixed Income 3,864,654 4.0¢

Real Estate 8,378,745 8.8¢

Global Tactical Asset Allocation 4,652,529 4.9¢

Cash Equivalent 912,734 1.0¢

Asset Allocation Summary

Total FundAs of September 30, 2018

NONE

Page 10

Asset Allocation By Manager as ofJune 30, 2018 : $91,150,330

Asset Allocation By Manager as ofSeptember 30, 2018 : $95,639,922

Allocation

Market Value Allocation

Fred Alger (Equity) 11,529,350 12.6¢

Sawgrass 10,508,517 11.5¢

Cambiar Investors Equity 10,303,480 11.3¢

Galliard Core Fixed 10,179,232 11.2¢

Vanguard TSM Index (VITSX) 9,912,079 10.9¢

WCM Focused International Growth Instl (WCMIX) 5,889,581 6.5¢

Brandywine Dynamic Large Cap Value 5,413,631 5.9¢

Vanguard Equity Income (VEIRX) 5,399,998 5.9¢

Vanguard TIS Index (VTIAX) 5,370,845 5.9¢

Intercontinental Real Estate 4,787,525 5.3¢

Templeton Global Bond (FBNRX) 3,825,570 4.2¢

American Core Realty Fund 3,498,571 3.8¢

Westwood Income Opportunity Fund (WHGIX) 2,284,643 2.5¢

BlackRock Multi-Asset Income (BIICX) 2,247,079 2.5¢

Mutual Fund Cash 214 0.0¢

Dana Equity 15 0.0¢

Allocation

Market Value Allocation

Fred Alger (Equity) 12,448,119 13.0¢

Sawgrass 11,590,723 12.1¢

Cambiar Investors Equity 10,872,398 11.4¢

Vanguard TSM Index (VITSX) 10,615,168 11.1¢

Galliard Core Fixed 10,197,048 10.7¢

WCM Focused International Growth Instl (WCMIX) 6,068,163 6.3¢

Brandywine Dynamic Large Cap Value 5,864,422 6.1¢

Vanguard Equity Income (VEIRX) 5,688,517 5.9¢

Vanguard TIS Index (VTIAX) 5,399,220 5.6¢

Intercontinental Real Estate 4,855,955 5.1¢

Templeton Global Bond (FBNRX) 3,864,654 4.0¢

American Core Realty Fund 3,522,790 3.7¢

Westwood Income Opportunity Fund (WHGIX) 2,355,673 2.5¢

BlackRock Multi-Asset Income (BIICX) 2,296,856 2.4¢

Mutual Fund Cash 214 0.0¢

Dana Equity - 0.0¢

Asset Allocation Summary

Total FundAs of September 30, 2018

NONE

Page 11

Asset Allocation Attributes

Sep-2017 Dec-2017 Mar-2018 Jun-2018 Sep-2018

($) % ($) % ($) % ($) % ($) %

Total Domestic Equity 49,326,558 56.56 51,993,566 57.68 51,977,209 57.66 53,067,070 58.22 57,079,348 59.68

Vanguard TSM Index (VITSX) 9,403,119 10.78 9,999,061 11.09 9,938,998 11.03 9,912,079 10.87 10,615,168 11.10

Brandywine Dynamic Large Cap Value - 0.00 - 0.00 - 0.00 5,413,631 5.94 5,864,422 6.13

Vanguard Equity Income (VEIRX) - 0.00 - 0.00 - 0.00 5,399,998 5.92 5,688,517 5.95

Sawgrass 9,914,821 11.37 10,439,360 11.58 10,448,942 11.59 10,508,517 11.53 11,590,723 12.12

Fred Alger 10,114,607 11.60 10,646,898 11.81 10,965,403 12.16 11,529,350 12.65 12,448,119 13.02

Cambiar Investors Equity 9,442,240 10.83 9,820,484 10.89 9,869,855 10.95 10,303,480 11.30 10,872,398 11.37

Total International Equity 10,769,121 12.35 11,309,339 12.55 11,385,485 12.63 11,260,426 12.35 11,467,383 11.99

Vanguard TIS Index (VTIAX) 5,313,479 6.09 5,572,829 6.18 5,546,928 6.15 5,370,845 5.89 5,399,220 5.65

WCM Focused Intl Growth Instl (WCMIX) 5,455,642 6.26 5,736,510 6.36 5,838,557 6.48 5,889,581 6.46 6,068,163 6.34

Total Domestic Fixed Income 10,654,930 12.22 10,263,710 11.39 10,166,237 11.28 10,179,232 11.17 10,197,048 10.66

Galliard Core Fixed 10,654,930 12.22 10,263,710 11.39 10,166,237 11.28 10,179,232 11.17 10,197,048 10.66

Total Global Fixed Income 3,941,377 4.52 3,871,617 4.30 3,925,322 4.35 3,825,570 4.20 3,864,654 4.04

Templeton Global Bond (FBNRX) 3,941,377 4.52 3,871,617 4.30 3,925,322 4.35 3,825,570 4.20 3,864,654 4.04

Total Global Tactical Asset Allocation 4,482,884 5.14 4,595,531 5.10 4,513,773 5.01 4,531,722 4.97 4,652,529 4.86

BlackRock Multi-Asset Income (BIICX) 2,238,092 2.57 2,275,507 2.52 2,244,833 2.49 2,247,079 2.47 2,296,856 2.40

Westwood Income Opportunity Fund (WHGIX) 2,244,792 2.57 2,320,024 2.57 2,268,940 2.52 2,284,643 2.51 2,355,673 2.46

Total Real Estate 8,028,779 9.21 8,107,809 8.99 8,179,334 9.07 8,286,096 9.09 8,378,745 8.76

American Core Realty Fund 3,486,809 4.00 3,494,828 3.88 3,478,055 3.86 3,498,571 3.84 3,522,790 3.68

Intercontinental Real Estate 4,541,970 5.21 4,612,981 5.12 4,701,279 5.22 4,787,525 5.25 4,855,955 5.08

Mutual Fund Cash 7 0.00 7 0.00 7 0.00 214 0.00 214 0.00

Total Fund 87,203,657 100.00 90,141,579 100.00 90,147,368 100.00 91,150,330 100.00 95,639,922 100.00

Asset Allocation

Total Fund


Page 12

Historical Asset Allocation by Segment

Domestic Equity International Equity Domestic Fixed Income Global Fixed Income

Real Estate Global Tactical Asset Allocation Cash Equivalent

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

All

oc

ati

on

(%)

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 9/15 3/16 9/16 3/17 9/17 3/18 9/18

Asset Allocation

Total Fund

October 1, 2007 To September 30, 2018

Page 13

Financial Reconciliation Quarter to Date

Market Value07/01/2018

NetTransfers

Contributions DistributionsManagement

FeesOther

ExpensesIncome

Apprec./Deprec.


Total Domestic Equity 53,067,070 - 43,510 - -41,086 -2,424 300,129 3,712,150 57,079,348

Vanguard TSM Index (VITSX) 9,912,079 - - - - - 50,481 652,608 10,615,168

Brandywine Dynamic Large Cap Value 5,413,631 15 7,030 - -7,030 - 32,279 418,497 5,864,422

Vanguard Equity Income (VEIRX) 5,399,998 - - - - - 39,352 249,167 5,688,517

Sawgrass 10,508,517 - 34,844 - -34,056 -788 107,885 974,321 11,590,723

Fred Alger 11,529,350 - 864 - - -864 26,036 892,733 12,448,119

Cambiar Investors Equity 10,303,480 - 772 - - -772 44,095 524,823 10,872,398

Total International Equity 11,260,426 - - - - - 26,706 180,251 11,467,383

Vanguard TIS Index (VTIAX) 5,370,845 - - - - - 26,706 1,668 5,399,220

WCM Focused Intl Growth Instl (WCMIX) 5,889,581 - - - - - - 178,583 6,068,163

Total Domestic Fixed Income 10,179,232 - 7,121 - -6,362 -759 85,278 -67,462 10,197,048

Galliard Core Fixed 10,179,232 - 7,121 - -6,362 -759 85,278 -67,462 10,197,048

Total Global Fixed Income 3,825,570 - - - - - 52,734 -13,649 3,864,654

Templeton Global Bond (FBNRX) 3,825,570 - - - - - 52,734 -13,649 3,864,654

Total Global Tactical Asset Allocation 4,531,722 - - - - - 41,982 78,825 4,652,529

BlackRock Multi-Asset Income (BIICX) 2,247,079 - - - - - 28,752 21,025 2,296,856

Westwood Income Opportunity Fund (WHGIX) 2,284,643 - - - - - 13,231 57,800 2,355,673

Total Real Estate 8,286,096 - - -93,597 -16,765 - 92,791 110,219 8,378,745

American Core Realty Fund 3,498,571 - - -42,645 -9,833 - 32,404 44,292 3,522,790

Intercontinental Real Estate 4,787,525 - - -50,952 -6,932 - 60,387 65,927 4,855,955

Mutual Fund Cash 214 - 2,619 - - -2,619 1 - 214

Total Fund 91,150,330 - 53,251 -93,597 -64,213 -5,803 599,621 4,000,333 95,639,922

Financial Reconciliation

Total Fund

1 Quarter Ending September 30, 2018

Page 14

Financial Reconciliation Year to Date


NetTransfers

Contributions DistributionsManagement

FeesOther

ExpensesIncome

Apprec./Deprec.


Total Domestic Equity 51,993,566 -1,000,000 143,883 - -135,162 -8,750 753,236 5,332,575 57,079,348

Vanguard TSM Index (VITSX) 9,999,061 -400,000 - - - - 164,440 851,667 10,615,168

Brandywine Dynamic Large Cap Value - 5,456,868 7,030 - -7,030 - 55,305 352,249 5,864,422

Vanguard Equity Income (VEIRX) - 5,380,996 - - - - 77,906 229,616 5,688,517

Sawgrass 10,439,360 -400,000 53,373 - -51,020 -2,354 182,226 1,369,137 11,590,723

Fred Alger 10,646,898 -200,000 37,604 - -35,119 -2,514 82,910 1,918,340 12,448,119

Cambiar Investors Equity 9,820,484 - 26,858 - -24,611 -2,247 122,273 929,642 10,872,398

Total International Equity 11,309,339 - - - - - 99,018 59,026 11,467,383

Vanguard TIS Index (VTIAX) 5,572,829 - - - - - 99,018 -272,628 5,399,220

WCM Focused Intl Growth Instl (WCMIX) 5,736,510 - - - - - - 331,653 6,068,163

Total Domestic Fixed Income 10,263,710 - 21,414 - -19,130 -2,284 252,637 -319,299 10,197,048

Galliard Core Fixed 10,263,710 - 21,414 - -19,130 -2,284 252,637 -319,299 10,197,048

Total Global Fixed Income 3,871,617 - - - - - 132,832 -139,795 3,864,654

Templeton Global Bond (FBNRX) 3,871,617 - - - - - 132,832 -139,795 3,864,654

Total Global Tactical Asset Allocation 4,595,531 - - - - - 122,466 -65,468 4,652,529

BlackRock Multi-Asset Income (BIICX) 2,275,507 - - - - - 87,509 -66,161 2,296,856

Westwood Income Opportunity Fund (WHGIX) 2,320,024 - - - - - 34,957 693 2,355,673

Total Real Estate 8,107,809 -42,037 - -266,080 -49,873 - 249,417 379,510 8,378,745

American Core Realty Fund 3,494,828 -42,037 - -127,136 -29,304 - 101,038 125,402 3,522,790

Intercontinental Real Estate 4,612,981 - - -138,944 -20,569 - 148,379 254,108 4,855,955

Mutual Fund Cash 7 1,000,000 7,083 -1,000,000 - -7,083 207 - 214

Total Fund 90,141,579 -42,037 172,380 -1,266,080 -204,165 -18,117 1,609,814 5,246,548 95,639,922

Financial Reconciliation

Total Fund

Year To Date Ending September 30, 2018

Page 15

Comparative Performance Trailing Returns

QTR YTD 1 YR 3 YR 5 YR InceptionInception

Date

Total Fund (Net) 5.01 7.48 12.10 11.44 8.52 5.87 04/01/2002

Total Fund Policy 3.55 4.64 8.79 10.61 8.41 6.91

Total Fund (Gross) 5.05 (5) 7.68 (4) 12.44 (4) 11.72 (10) 8.82 (22) 6.38 (68) 04/01/2002

Total Fund Policy 3.55 (42) 4.64 (53) 8.79 (49) 10.61 (38) 8.41 (35) 6.91 (32)

All Public Plans-Total Fund Median 3.41 4.70 8.77 10.17 8.08 6.63

Total Equity 6.56 10.02 16.63 14.77 10.43 6.37 07/01/2007

Total Equity Policy 5.51 7.05 13.49 15.32 11.11 6.63

Total Domestic Equity 7.56 (36) 11.93 (21) 18.90 (29) 15.76 (60) 11.93 (84) 7.45 (87) 07/01/2007

Total Domestic Equity Policy 7.12 (50) 10.57 (38) 17.58 (46) 17.07 (34) 13.46 (55) 8.40 (62)

IM U.S. Large Cap Core Equity (SA+CF) Median 7.11 9.76 17.33 16.11 13.57 8.72

Vanguard TSM Index (VITSX) 7.09 (22) 10.61 (20) 17.62 (18) 17.08 (11) N/A 11.91 (11) 01/01/2014

CRSP U.S. Total Market TR Index 7.08 (23) 10.60 (21) 17.62 (19) 17.07 (11) 13.45 (11) 11.92 (11)

IM U.S. Multi-Cap Core Equity (MF) Median 5.83 7.91 14.51 14.53 11.56 9.91

Brandywine Dynamic Large Cap Value 8.33 (8) N/A N/A N/A N/A 8.37 (27) 05/01/2018

Russell 1000 Value Index 5.70 (49) 3.92 (71) 9.45 (77) 13.55 (71) 10.72 (71) 6.59 (57)

IM U.S. Large Cap Value Equity (SA+CF) Median 5.64 5.14 11.72 14.64 11.57 6.96

Vanguard Equity Income (VEIRX) 5.34 (57) N/A N/A N/A N/A 6.82 (61) 04/01/2018

Vangaurd Equity Income Idx Hybrid 5.74 (47) 4.18 (65) 10.75 (63) 15.16 (41) 12.12 (38) 7.19 (56)


Sawgrass 10.30 (9) 15.44 (58) 23.89 (57) 17.10 (75) 14.24 (73) 9.52 (72) 07/01/2007

Russell 1000 Growth Index 9.17 (25) 17.09 (46) 26.30 (37) 20.55 (23) 16.58 (31) 10.70 (41)

IM U.S. Large Cap Growth Equity (SA+CF) Median 8.19 16.46 24.66 18.85 15.70 10.38

Fred Alger 7.97 (55) 19.08 (32) 27.71 (29) N/A N/A 24.72 (27) 10/01/2016



Cambiar Investors Equity 5.52 (21) 10.71 (11) 15.15 (19) N/A N/A 13.33 (28) 05/01/2017


IM U.S. SMID Cap Value Equity (SA+CF) Median 3.00 5.22 10.14 14.05 10.49 11.11

Comparative Performance

Total Fund


Returns for periods greater than one year are annualized.Returns are expressed as percentages.Fiscal year ends December 31st.

Page 16


Total Fund



Date

Total International Equity 1.84 (11) 1.40 (3) 6.48 (3) 10.17 (16) 3.82 (63) 1.92 (27) 07/01/2007

Total International Equity Policy 0.71 (50) -3.09 (62) 1.76 (40) 9.97 (19) 4.12 (52) 1.01 (56)

IM International Multi-Cap Core Equity (MF) Median 0.70 -2.76 1.39 8.60 4.21 1.20

Vanguard TIS Index (VTIAX) 0.53 (61) -3.12 (64) 1.61 (45) 9.95 (20) N/A 3.67 (33) 01/01/2014

FTSE Global ex USA All Cap Index 0.58 (58) -2.96 (56) 2.28 (28) 10.52 (11) 4.88 (26) 4.11 (20)

IM International Multi-Cap Core Equity (MF) Median 0.70 -2.76 1.39 8.60 4.21 3.20

WCM Focused Intl Growth Instl (WCMIX) 3.03 (2) 5.78 (2) 11.23 (3) N/A N/A 16.46 (11) 03/01/2016

MSCI AC World ex USA 0.80 (33) -2.67 (65) 2.25 (56) 10.49 (28) 4.60 (58) 14.44 (21)

IM International Multi-Cap Growth Equity (MF) Median 0.24 -1.59 2.64 9.11 4.87 12.64

Total Fixed Income 0.41 -0.52 -0.94 2.10 2.05 4.12 07/01/2007

Total Fixed Income Policy 0.11 -0.86 -0.93 0.97 1.57 3.55

Total Domestic Fixed Income 0.18 (91) -0.65 (82) -0.56 (67) 1.48 (34) 2.10 (31) 4.14 (26) 07/01/2007

Total Domestic Fixed Income Policy 0.11 (96) -0.86 (95) -0.93 (96) 0.97 (90) 1.57 (86) 3.55 (85)

IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.48 -0.39 1.37 1.91 3.89

Galliard Core Fixed 0.18 (91) -0.65 (82) -0.56 (67) 1.48 (34) 2.29 (21) 4.30 (18) 07/01/2007

Bloomberg Barclays Intermed Aggregate Index 0.11 (96) -0.86 (95) -0.93 (96) 0.95 (92) 1.70 (76) 3.56 (85)

IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.48 -0.39 1.37 1.91 3.89

Total Global Fixed Income 1.02 (9) -0.18 (19) -1.95 (67) 3.87 (14) N/A 1.51 (46) 01/01/2014

FTSE World Government Bond Index -1.62 (97) -2.55 (63) -1.54 (56) 1.68 (69) 0.20 (85) 0.45 (79)

IM Global Fixed Income (MF) Median -0.39 -1.86 -1.19 2.36 1.39 1.28

Templeton Global Bond (FBNRX) 1.02 (9) -0.18 (19) -1.95 (67) 3.87 (14) N/A 1.51 (46) 01/01/2014

FTSE World Government Bond Index -1.62 (97) -2.55 (63) -1.54 (56) 1.68 (69) 0.20 (85) 0.45 (79)

IM Global Fixed Income (MF) Median -0.39 -1.86 -1.19 2.36 1.39 1.28


Page 17


Total Fund



Date

Total Global Tactical Asset Allocation 2.67 1.24 3.78 6.67 N/A 4.89 08/01/2015

Total Global Tactical Asset Allocation Policy 2.47 1.95 4.92 7.38 N/A 5.31

BlackRock Multi-Asset Income (BIICX) 2.22 (38) 0.94 (49) 2.63 (59) 5.92 (68) N/A 4.47 (54) 08/01/2015

Total BlackRock Policy 2.48 (35) 1.95 (34) 4.93 (36) 7.39 (44) 5.80 (34) 5.32 (33)

IM Flexible Portfolio (MF) Median 1.74 0.85 3.38 6.98 5.04 4.59

Westwood Income Opportunity Fund (WHGIX) 3.11 (1) 1.54 (21) 4.94 (6) 7.43 (6) N/A 5.30 (9) 08/01/2015

Westwood Blended BM 1.88 (23) 2.53 (6) 4.85 (7) 6.47 (20) 6.43 (4) 5.22 (9)

IM Mixed-Asset Target Alloc Consv (MF) Median 1.47 0.65 2.50 5.22 4.07 3.62

Total Real Estate 2.46 (31) 7.91 (12) 10.48 (26) 10.55 (33) 11.77 (45) 11.97 (74) 04/01/2010

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 9.08 (56) 10.84 (61) 12.54 (68)

IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 6.78 9.69 9.53 11.41 13.14

American Core Realty Fund 2.19 (59) 6.66 (68) 8.50 (70) 8.35 (82) 10.28 (72) 10.83 (73) 07/01/2011

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 9.08 (56) 10.84 (61) 11.32 (61)


Intercontinental Real Estate 2.67 (15) 8.84 (1) 11.97 (1) 12.29 (17) 12.96 (22) 13.10 (51) 04/01/2010

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 9.08 (56) 10.84 (61) 12.54 (68)



Page 18

Comparative Performance Fiscal Year Returns

YTDJan-2017

ToDec-2017

Jan-2016To

Dec-2016

Jan-2015To

Dec-2015

Jan-2014To

Dec-2014

Jan-2013To

Dec-2013

Jan-2012To

Dec-2012

Jan-2011To

Dec-2011

Jan-2010To

Dec-2010

Total Fund (Net) 7.48 16.12 7.27 -0.17 5.49 20.52 12.90 0.56 11.34

Total Fund Policy 4.64 15.45 8.09 1.22 7.53 17.20 12.33 2.24 12.02

Total Fund (Gross) 7.68 (4) 16.55 (25) 7.41 (43) -0.03 (55) 5.88 (76) 21.22 (9) 13.60 (23) 1.17 (31) 11.73 (73)

Total Fund Policy 4.64 (53) 15.45 (49) 8.09 (32) 1.22 (23) 7.53 (35) 17.20 (54) 12.33 (49) 2.24 (11) 12.02 (67)

All Public Plans-Total Fund Median 4.70 15.41 7.13 0.07 6.95 17.46 12.29 0.25 12.69

Total Equity 10.02 21.93 7.99 -2.14 5.80 30.14 17.04 -2.23 14.31

Total Equity Policy 7.05 22.65 10.69 -1.04 8.26 28.83 16.60 -2.82 15.29

Total Domestic Equity 11.93 (21) 20.47 (72) 9.55 (63) -0.76 (74) 8.67 (91) 33.02 (50) 16.82 (34) 0.47 (65) 15.01 (47)

Total Domestic Equity Policy 10.57 (38) 21.13 (60) 12.74 (24) 0.48 (62) 12.56 (62) 33.55 (44) 16.42 (40) 1.03 (61) 16.93 (25)

IM U.S. Large Cap Core Equity (SA+CF) Median 9.76 21.82 10.52 1.41 13.42 32.98 15.66 2.03 14.82

Vanguard TSM Index (VITSX) 10.61 (20) 21.17 (39) 12.67 (29) 0.42 (32) 12.57 (29) N/A N/A N/A N/A

CRSP U.S. Total Market TR Index 10.60 (21) 21.19 (38) 12.68 (29) 0.40 (32) 12.58 (28) 33.64 (50) 16.22 (38) 0.70 (27) 17.87 (23)

IM U.S. Multi-Cap Core Equity (MF) Median 7.91 20.57 10.06 -0.95 10.90 33.60 15.61 -1.33 14.51

iShares S&P 100 Index (OEF) N/A N/A N/A N/A N/A N/A 15.79 (44) 2.97 (17) 12.32 (64)

S&P 100 11.09 (18) 21.96 (35) 11.37 (36) 2.64 (18) 12.74 (29) 30.39 (69) 16.05 (39) 3.18 (16) 12.51 (60)

IM U.S. Large Cap Core Equity (MF) Median 8.78 21.00 10.20 0.08 11.34 31.78 15.38 -0.60 13.15

Dana Equity N/A 15.37 (73) 10.38 (81) -0.63 (35) 13.39 (36) 31.35 (74) 17.12 (33) 1.17 (45) 15.25 (44)

Russell 1000 Value Index 3.92 (71) 13.66 (89) 17.34 (25) -3.83 (70) 13.45 (35) 32.53 (62) 17.51 (29) 0.39 (52) 15.51 (41)

IM U.S. Large Cap Value Equity (SA+CF) Median 5.14 17.22 14.35 -2.22 12.24 34.26 15.63 0.61 14.63

Brandywine Dynamic Large Cap Value N/A N/A N/A N/A N/A N/A N/A N/A N/A

Russell 1000 Value Index 3.92 (71) 13.66 (89) 17.34 (25) -3.83 (70) 13.45 (35) 32.53 (62) 17.51 (29) 0.39 (52) 15.51 (41)


Vanguard Equity Income (VEIRX) N/A N/A N/A N/A N/A N/A N/A N/A N/A

Vangaurd Equity Income Idx Hybrid 4.18 (65) 16.51 (63) 16.96 (27) 0.39 (23) 13.58 (33) 30.34 (80) 12.75 (76) 10.65 (6) 14.36 (53)


Advisory Research N/A N/A 17.77 (59) -9.15 (89) -1.29 (95) N/A N/A N/A N/A

Russell 2500 Value Index 5.75 (44) 10.36 (85) 25.20 (24) -5.49 (69) 7.11 (50) 33.32 (74) 19.21 (36) -3.36 (64) 24.82 (57)

IM U.S. SMID Cap Value Equity (SA+CF) Median 5.22 14.63 19.40 -3.01 7.06 35.78 16.99 -2.09 25.50

Moody Aldrich Focused Value N/A N/A N/A N/A N/A N/A 15.80 (55) -10.65 (99) 20.46 (29)


IM U.S. All Cap Value Equity (SA+CF) Median 5.85 16.56 16.69 -3.34 10.06 34.74 16.13 -0.52 18.09


Total Fund


Returns for periods greater than one year are annualized.Returns are expressed as percentages. Fiscal year ends December 31st.

Page 19


Total Fund


YTDJan-2017

ToDec-2017

Jan-2016To

Dec-2016

Jan-2015To

Dec-2015

Jan-2014To

Dec-2014

Jan-2013To

Dec-2013

Jan-2012To

Dec-2012

Jan-2011To

Dec-2011

Jan-2010To

Dec-2010

Lateef N/A N/A N/A 3.94 (59) 6.14 (94) 31.08 (77) 20.59 (9) 0.61 (46) 15.97 (51)

Russell 1000 Growth Index 17.09 (46) 30.21 (38) 7.08 (27) 5.67 (45) 13.05 (38) 33.48 (59) 15.26 (49) 2.64 (28) 16.71 (46)

IM U.S. Large Cap Growth Equity (SA+CF) Median 16.46 28.10 4.66 4.97 11.90 34.52 15.18 0.25 16.02

Sawgrass 15.44 (58) 23.28 (81) 6.46 (34) 1.94 (76) 13.72 (32) 34.82 (47) 14.36 (60) 9.13 (3) 10.81 (91)



Fred Alger 19.08 (32) 32.60 (23) N/A N/A N/A N/A N/A N/A N/A



Cambiar Investors Equity 10.71 (11) N/A N/A N/A N/A N/A N/A N/A N/A


IM U.S. SMID Cap Value Equity (SA+CF) Median 5.22 14.63 19.40 -3.01 7.06 35.78 16.99 -2.09 25.50

Total International Equity 1.40 (3) 29.40 (7) 0.64 (60) -8.33 (95) -5.91 (63) 18.64 (62) 17.95 (45) -11.56 (21) 11.96 (25)

Total International Equity Policy -3.09 (62) 27.19 (25) 4.50 (19) -5.66 (88) -3.87 (28) 15.29 (80) 16.83 (68) -13.71 (54) 8.77 (60)

IM International Multi-Cap Core Equity (MF) Median -2.76 25.27 1.11 -1.03 -5.13 20.35 17.74 -13.28 9.68

Vanguard TIS Index (VTIAX) -3.12 (64) 27.55 (19) 4.67 (16) -4.26 (80) -4.20 (35) N/A N/A N/A N/A

FTSE Global ex USA All Cap Index -2.96 (56) 27.77 (17) 5.04 (11) -4.03 (79) -3.12 (22) 15.90 (76) 17.92 (46) -14.03 (57) 13.23 (15)


iShares MSCI EAFE Index (EFA) N/A N/A N/A N/A N/A N/A 17.22 (62) -12.18 (30) 7.52 (73)

MSCI EAFE Index -0.98 (13) 25.62 (44) 1.51 (41) -0.39 (36) -4.48 (41) 23.29 (16) 17.90 (47) -11.73 (23) 8.21 (66)


Wentworth, Hauser, & Violich Int'l N/A N/A N/A -11.79 (100) -7.32 (91) 18.12 (73) 17.49 (67) -11.77 (57) 15.96 (28)

MSCI EAFE Index -0.98 (59) 25.62 (87) 1.51 (30) -0.39 (77) -4.48 (66) 23.29 (34) 17.90 (65) -11.73 (57) 8.21 (85)

IM International Large Cap Growth Equity (SA+CF) Median -0.33 31.37 -0.07 2.18 -3.34 20.63 19.59 -11.25 13.20

WCM Focused International Growth Instl (WCMIX) 5.78 (2) 31.24 (36) N/A N/A N/A N/A N/A N/A N/A

MSCI AC World ex USA -2.67 (65) 27.77 (58) 5.01 (7) -5.25 (91) -3.44 (35) 15.78 (79) 17.39 (62) -13.33 (45) 11.60 (63)

IM International Multi-Cap Growth Equity (MF) Median -1.59 28.55 -1.00 0.35 -4.95 19.42 18.17 -13.65 12.99

Total Fixed Income -0.52 2.85 3.77 0.54 3.63 -1.37 5.39 6.52 7.13

Total Fixed Income Policy -0.86 2.27 1.97 0.90 4.05 -2.19 4.07 7.08 5.90


Page 20


Total Fund


YTDJan-2017

ToDec-2017

Jan-2016To

Dec-2016

Jan-2015To

Dec-2015

Jan-2014To

Dec-2014

Jan-2013To

Dec-2013

Jan-2012To

Dec-2012

Jan-2011To

Dec-2011

Jan-2010To

Dec-2010

Total Domestic Fixed Income -0.65 (82) 2.88 (27) 2.66 (36) 1.88 (10) 4.07 (32) -1.71 (95) 5.39 (34) 6.52 (17) 7.13 (24)

Total Domestic Fixed Income Policy -0.86 (95) 2.27 (76) 1.97 (78) 0.90 (85) 4.05 (33) -2.19 (99) 4.07 (72) 7.08 (7) 5.90 (77)

IM U.S. Intermediate Duration (SA+CF) Median -0.48 2.54 2.39 1.30 3.57 -0.53 4.98 5.88 6.41

Galliard Core Fixed -0.65 (82) 2.88 (27) 2.66 (36) 1.85 (11) 4.83 (15) -0.82 (69) 5.52 (32) 6.14 (35) 7.46 (18)

Bloomberg Barclays Intermed Aggregate Index -0.86 (95) 2.27 (76) 1.97 (78) 1.21 (63) 4.12 (31) -1.02 (80) 3.56 (87) 5.97 (45) 6.15 (64)

IM U.S. Intermediate Duration (SA+CF) Median -0.48 2.54 2.39 1.30 3.57 -0.53 4.98 5.88 6.41

Galliard TIPS N/A N/A N/A N/A 0.84 (91) -5.47 (12) 4.84 (98) 8.81 (96) 4.97 (96)

Barclays U.S. Tips -0.20 (33) 1.90 (98) 4.01 (89) -0.52 (21) 0.91 (83) -5.58 (22) 5.04 (83) 8.93 (89) 5.22 (93)

IM U.S. TIPS (SA+CF) Median -0.74 3.10 4.66 -1.41 3.59 -8.33 6.99 13.52 6.40

Total Global Fixed Income -0.18 (19) 2.79 (87) 6.78 (9) -3.91 (52) 1.97 (49) N/A N/A N/A N/A

FTSE World Government Bond Index -2.55 (63) 7.49 (35) 1.60 (80) -3.57 (46) -0.48 (79) -4.00 (77) 1.65 (99) 6.35 (15) 5.17 (62)

IM Global Fixed Income (MF) Median -1.86 6.81 2.92 -3.83 1.91 -2.52 7.33 4.01 5.97

Templeton Global Bond (FBNRX) -0.18 (19) 2.79 (87) 6.78 (9) -3.91 (52) 1.97 (49) N/A N/A N/A N/A

FTSE World Government Bond Index -2.55 (63) 7.49 (35) 1.60 (80) -3.57 (46) -0.48 (79) -4.00 (77) 1.65 (99) 6.35 (15) 5.17 (62)

IM Global Fixed Income (MF) Median -1.86 6.81 2.92 -3.83 1.91 -2.52 7.33 4.01 5.97

Total Global Tactical Asset Allocation 1.24 9.99 6.69 N/A N/A N/A N/A N/A N/A

Total Global Tactical Asset Allocation Policy 1.95 12.63 5.22 N/A N/A N/A N/A N/A N/A

BlackRock Multi-Asset Income (BIICX) 0.94 (49) 9.02 (74) 6.72 (45) N/A N/A N/A N/A N/A N/A

Total BlackRock Policy 1.95 (34) 12.62 (46) 5.23 (64) 0.08 (16) 5.53 (29) 11.56 (49) 10.13 (61) 1.34 (27) 9.73 (79)

IM Flexible Portfolio (MF) Median 0.85 12.03 6.40 -3.36 3.50 11.03 11.40 -1.59 12.05

Westwood Income Opportunity Fund (WHGIX) 1.54 (21) 10.96 (13) 6.66 (28) N/A N/A N/A N/A N/A N/A

Westwood Blended BM 2.53 (6) 8.13 (59) 5.37 (50) 1.61 (1) 12.88 (1) 6.15 (61) 9.98 (40) 7.31 (3) 13.10 (6)

IM Mixed-Asset Target Alloc Consv (MF) Median 0.65 8.55 5.35 -1.55 3.99 7.10 9.45 1.73 9.96

Total Real Estate 7.91 (12) 8.48 (43) 10.39 (40) 14.98 (52) 12.81 (70) 14.85 (41) 13.41 (33) 15.19 (61) N/A

NCREIF Fund ODCE 6.52 (70) 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60) 11.03 (77) 15.96 (46) 16.14 (48)

IM U.S. Open End Private Real Estate (SA+CF) Median 6.78 8.08 9.63 15.23 13.59 14.47 12.45 15.86 15.81

American Core Realty Fund 6.66 (68) 8.08 (50) 7.10 (97) 15.37 (43) 11.62 (87) 12.37 (71) 11.24 (75) N/A N/A

NCREIF Fund ODCE 6.52 (70) 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60) 11.03 (77) 15.96 (46) 16.14 (48)



Page 21


Total Fund


YTDJan-2017

ToDec-2017

Jan-2016To

Dec-2016

Jan-2015To

Dec-2015

Jan-2014To

Dec-2014

Jan-2013To

Dec-2013

Jan-2012To

Dec-2012

Jan-2011To

Dec-2011

Jan-2010To

Dec-2010

Intercontinental Real Estate 8.84 (1) 8.78 (38) 13.05 (21) 14.64 (61) 13.79 (44) 17.04 (17) 15.46 (14) 16.16 (45) N/A

NCREIF Fund ODCE 6.52 (70) 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60) 11.03 (77) 15.96 (46) 16.14 (48)



Page 22

Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund


-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Re

turn

QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR

Total Fund 5.05 (3) 7.68 (2) 12.44 (3) 13.27 (4) 11.72 (8) 8.27 (15) 8.82 (16)��

Total Fund Policy 3.55 (28) 4.64 (39) 8.79 (37) 10.48 (48) 10.61 (31) 7.85 (27) 8.41 (28)��

Median 3.13 4.27 8.20 10.35 10.01 7.29 7.84

-8.00

-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00

28.00

Re

turn

2017 2016 2015 2014 2013

Total Fund 16.55 (27) 7.41 (48) -0.03 (54) 5.88 (73) 21.22 (8)��

Total Fund Policy 15.45 (50) 8.09 (33) 1.22 (20) 7.53 (29) 17.20 (47)��

Median 15.43 7.32 0.07 6.76 16.99

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Total Fund 2.34 (13) 0.16 (19) 4.42 (12) 3.46 (47) 2.67 (66) 5.08 (17)

Total Fund Policy 1.43 (57) -0.37 (58) 3.97 (38) 3.52 (41) 2.84 (54) 4.31 (56)

All Public Plans-Total Fund Median 1.57 -0.27 3.77 3.43 2.87 4.43


Performance Review

Total Fund

NONE

Page 23

Peer Group Scattergram - 3 Years

3 Yr Rolling Under/Over Performance - 5 Years


3 Yr Rolling Percentile Ranking - 5 Years

Historical Statistics - 3 Years


Over Performance Under Performance

Earliest Date Latest Date

0.0

4.0

8.0

12.0

16.0

20.0

To

tal

F

un

d (%

)

0.0 4.0 8.0 12.0 16.0 20.0

Total Fund Policy (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Total Fund 20 11 (55%) 5 (25%) 4 (20%) 0 (0%)��

Total Fund Policy 20 10 (50%) 10 (50%) 0 (0%) 0 (0%)��

9.44

10.03

10.62

11.21

11.80

12.39

Re

turn

(%)

5.40 5.60 5.80 6.00 6.20 6.40

Risk (Standard Deviation %)

ReturnStandardDeviation

Total Fund 11.72 6.19��

Total Fund Policy 10.61 5.61��

Median 10.03 5.61¾

7.59

7.92

8.25

8.58

8.91

9.24

Re

turn

(%)

5.4 5.6 5.8 6.0 6.2 6.4 6.6 6.8



Total Fund 8.82 6.64��

Total Fund Policy 8.41 5.76��

Median 7.83 5.96¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Total Fund 1.26 109.58 107.75 0.19 0.83 1.71 1.08 3.07

Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.69 1.00 2.71 90 Day U.S. Treasury Bill 5.61 5.33 -2.62 0.79 -1.69 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Total Fund 1.46 110.91 121.61 -0.67 0.30 1.24 1.13 3.73

Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.35 1.00 3.14 90 Day U.S. Treasury Bill 5.75 3.43 -1.40 0.48 -1.35 N/A 0.00 0.01


Performance Review

Total Fund

NONE

Page 24

Peer Group Analysis - IM U.S. Large Cap Core Equity (SA+CF)


-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00

28.00

Re

turn


Dom Equity 7.56 (36) 11.93 (21) 18.90 (29) 18.49 (39) 15.76 (60) 11.23 (71) 11.93 (84)��

Dom Equity Policy 7.12 (50) 10.57 (38) 17.58 (46) 18.14 (47) 17.07 (34) 12.41 (46) 13.46 (55)��

Median 7.11 9.76 17.33 17.91 16.11 12.23 13.57

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

Re

turn

2017 2016 2015 2014 2013

Dom Equity 20.47 (72) 9.55 (63) -0.76 (74) 8.67 (91) 33.02 (50)��

Dom Equity Policy 21.13 (60) 12.74 (24) 0.48 (62) 12.56 (62) 33.55 (44)��

Median 21.82 10.52 1.41 13.42 32.98

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Dom Equity 4.10 (14) -0.03 (37) 6.22 (66) 4.26 (65) 2.66 (62) 5.97 (49)

Dom Equity Policy 3.89 (19) -0.64 (59) 6.34 (63) 4.57 (53) 3.02 (48) 5.74 (56)

IM U.S. Large Cap Core Equity (SA+CF) Median 2.89 -0.40 6.67 4.62 2.96 5.92

Performance Review


Domestic Equity

NONE

Page 25







Under Performance Earliest Date Latest Date

0.0

6.0

12.0

18.0

24.0

30.0

Do

m E

qu

ity

(%)

0.0 6.0 12.0 18.0 24.0 30.0

Dom Equity Policy (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Dom Equity 20 0 (0%) 0 (0%) 7 (35%) 13 (65%)��

Dom Equity Policy 20 0 (0%) 3 (15%) 17 (85%) 0 (0%)��

15.18

15.64

16.10

16.56

17.02

17.48

Re

turn

(%)

4.08 4.25 4.42 4.59 4.76 4.93 5.10 5.27 5.44



Dom Equity 15.76 4.53��

Dom Equity Policy 17.07 4.38��

Median 16.11 5.26¾

11.55

12.10

12.65

13.20

13.75

14.30

Re

turn

(%)

7.08 7.14 7.20 7.26 7.32 7.38 7.44 7.50



Dom Equity 11.93 7.41��

Dom Equity Policy 13.46 7.11��

Median 13.57 7.38¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Dom Equity 1.10 94.22 98.36 -0.77 -1.05 1.59 0.98 4.41

Dom Equity Policy 0.00 100.00 100.00 0.00 N/A 1.69 1.00 4.41 90 Day U.S. Treasury Bill 9.16 3.27 -1.86 0.78 -1.69 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Dom Equity 1.27 95.14 104.82 -1.35 -1.07 1.17 1.00 5.36

Dom Equity Policy 0.00 100.00 100.00 0.00 N/A 1.32 1.00 5.16 90 Day U.S. Treasury Bill 9.56 2.06 -0.93 0.48 -1.32 N/A 0.00 0.01

Performance Review


Domestic Equity

NONE

Page 26

Peer Group Analysis - IM U.S. Multi-Cap Core Equity (MF)


-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00

28.00

Re

turn


Vanguard TSM 7.09 (22) 10.61 (20) 17.62 (18) 18.13 (25) 17.08 (11) 12.39 (10) N/A��

CRSP U.S. TR 7.08 (23) 10.60 (21) 17.62 (19) 18.13 (25) 17.07 (11) 12.39 (10) 13.45 (11)��

Median 5.83 7.91 14.51 16.10 14.53 10.39 11.56

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

Re

turn

2017 2016 2015 2014 2013

Vanguard TSM 21.17 (39) 12.67 (29) 0.42 (32) 12.57 (29) N/A��

CRSP U.S. TR 21.19 (38) 12.68 (29) 0.40 (32) 12.58 (28) 33.64 (50)��

Median 20.57 10.06 -0.95 10.90 33.60

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Vanguard TSM 3.91 (19) -0.60 (49) 6.34 (43) 4.54 (44) 3.03 (42) 5.79 (39)

CRSP U.S. TR 3.91 (19) -0.60 (49) 6.34 (42) 4.55 (43) 3.04 (42) 5.79 (39)

IM U.S. Multi-Cap Core Equity (MF) Median 2.64 -0.61 6.13 4.36 2.90 5.47

Performance Review


Vanguard TSM

NONE

Page 27








6.0

9.0

12.0

15.0

18.0

21.0

Va

ng

ua

rd T

SM

(%)

6.0 9.0 12.0 15.0 18.0 21.0

CRSP U.S. TR (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Vanguard TSM 8 8 (100%) 0 (0%) 0 (0%) 0 (0%)��

CRSP U.S. TR 20 10 (50%) 10 (50%) 0 (0%) 0 (0%)��

13.44

14.28

15.12

15.96

16.80

17.64

Re

turn

(%)

9.16 9.20 9.24 9.28 9.32 9.36 9.40



Vanguard TSM 17.08 9.17��

CRSP U.S. TR 17.07 9.17��

Median 14.53 9.34¾

11.16

11.78

12.40

13.02

13.64

14.26

Re

turn

(%)

9.48 9.54 9.60 9.66 9.72 9.78 9.84 9.90 9.96



Vanguard TSM N/A N/A��

CRSP U.S. TR 13.45 9.56��

Median 11.56 9.85¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Vanguard TSM 0.03 100.00 99.99 -0.01 0.03 1.69 1.00 4.43

CRSP U.S. TR 0.00 100.00 100.00 0.00 N/A 1.69 1.00 4.43 90 Day U.S. Treasury Bill 9.16 3.27 -1.85 0.78 -1.69 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Vanguard TSM N/A N/A N/A N/A N/A N/A N/A N/A

CRSP U.S. TR 0.00 100.00 100.00 0.00 N/A 1.32 1.00 5.15 90 Day U.S. Treasury Bill 9.54 2.06 -0.94 0.48 -1.32 N/A 0.00 0.01

Performance Review


Vanguard TSM

NONE

Page 28

Fund Information

Fund Name : Vanguard Index Funds: Vanguard Total Stock Market Index Fund; Institutional ClassShares

Portfolio Assets : $733,123 Million

Fund Family : Vanguard Group Inc Portfolio Manager : O'Reilly/Nejman

Ticker : VITSX PM Tenure : 2016--2016

Inception Date : 07/07/1997 Fund Style : IM U.S. Multi-Cap Core Equity (MF)

Fund Assets : $124,524 Million Style Benchmark : CRSP U.S. Total Market TR Index

Portfolio Turnover : 3%

Portfolio Characteristics As of 06/30/2018

Portfolio Benchmark

Total Securities 3,654 3,594

Avg. Market Cap ($) 167,414,878,043 1,208,604,100

Price/Earnings (P/E) 27.75 20.71

Price/Book (P/B) 6.60 3.25

Dividend Yield 2.43 1.86

Annual EPS 21.48 N/A

5 Yr EPS 12.68 14.70

3 Yr EPS Growth 11.43 N/A

Beta (5 Years, Monthly) 1.00 1.00

Top Ten Securities As of 06/30/2018

Apple Inc ORD 2.9 %

Microsoft Corp ORD 2.7 %

Amazon.com Inc ORD 2.5 %

Facebook Inc ORD 1.7 %

JPMorgan Chase & Co ORD 1.3 %

Berkshire Hathaway Inc ORD 1.3 %

Exxon Mobil Corp ORD 1.3 %

Alphabet Inc ORD 1 1.2 %

Alphabet Inc ORD 2 1.2 %

Johnson & Johnson ORD 1.2 %

Sector Weights As of 06/30/2018

Vanguard TSM Idx;Inst (VITSX)

CRSP U.S. Total Market TR Index

0.0 4.0 8.0 12.0 16.0 20.0 24.0

Other

Utilities

Communication Services

Real Estate

Materials

Information Technology

Industrials

Health Care

Financials

Energy

Consumer Staples

Consumer Discretionary

Region Weights As of 06/30/2018

Vanguard TSM Idx;Inst (VITSX)

CRSP U.S. Total Market TR Index

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Other

United Kingdom

Europe ex UK

Pacific ex Japan

North America

EM Latin America

EM Asia

Strategy Review

Vanguard TSM Idx;Inst (VITSX)As of September 30, 2018

Statistics provided by Lipper. Most recent available data shown.

Page 29

Peer Group Analysis - IM U.S. Large Cap Value Equity (SA+CF)


-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00R

etu

rn


Brandywine Dynamic LCV 8.33 (8) N/A N/A N/A N/A N/A N/A��

Russell 1000 Value Index 5.70 (49) 3.92 (71) 9.45 (77) 12.25 (83) 13.55 (71) 8.76 (74) 10.72 (71)��

Median 5.64 5.14 11.72 14.90 14.64 9.93 11.57

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Re

turn

2017 2016 2015 2014 2013

Brandywine Dynamic LCV N/A N/A N/A N/A N/A��

Russell 1000 Value Index 13.66 (89) 17.34 (25) -3.83 (70) 13.45 (35) 32.53 (62)��

Median 17.22 14.35 -2.22 12.24 34.26

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Brandywine Dynamic LCV N/A N/A N/A N/A N/A N/A

Russell 1000 Value Index 1.18 (65) -2.83 (75) 5.33 (76) 3.11 (80) 1.34 (73) 3.27 (70)

IM U.S. Large Cap Value Equity (SA+CF) Median 1.70 -1.96 6.31 4.10 2.07 3.99

Performance Review


Brandywine Dynamic LCV

NONE

Page 30

Portfolio Characteristics (Benchmark: Russell 1000 Value Index)

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 175,433,429,969 126,935,326,977

Median Mkt. Cap ($) 21,879,666,040 9,935,306,040

Price/Earnings ratio 15.7 16.4

Price/Book ratio 2.9 2.2

5 Yr. EPS Growth Rate (%) 10.4 7.2

Current Yield (%) 2.3 2.5

Beta N/A 1.00

Number of Stocks 101 727

Top Ten Equity Holdings (Benchmark: Russell 1000 Value Index)

Portfolio Wt Benchmark Wt Active Wt Qtr Rtrn

Apple Inc 6.3 0.0 6.3 22.4

JPMorgan Chase & Co 5.0 2.8 2.2 8.9

Citigroup Inc 4.9 1.3 3.6 7.9

Cisco Systems Inc 4.8 1.7 3.1 13.9

Pfizer Inc 4.7 1.9 2.8 22.5

Intel Corp 3.8 1.6 2.2 -4.3

Amgen Inc 3.8 0.1 3.7 13.1

Union Pacific Corp 3.8 0.1 3.7 15.5

Walt Disney Co (The) 3.7 0.4 3.3 12.5

American Express Co 2.8 0.2 2.6 9.0

% of Portfolio 43.6 10.1 33.5Ten Best Performers (Benchmark: Russell 1000 Value Index)

Portfolio Wt Benchmark Wt Active Wt Quarterly Rtrn

Allison Transmission Inc. 0.2 0.0 0.2 28.9

United Continental Holdings Inc 0.7 0.2 0.5 27.7

Radian Group Inc. 0.0 0.0 0.0 27.5

O'Reilly Automotive Inc 0.8 0.0 0.8 27.0

MGIC Investment Corp 0.1 0.0 0.1 24.2

Southwest Airlines Co. 1.0 0.1 0.9 23.1

Cigna Corp 1.5 0.2 1.3 22.5

Pfizer Inc 4.7 1.9 2.8 22.5

Apple Inc 6.3 0.0 6.3 22.4

Dover Corp 0.3 0.1 0.2 21.6

% of Portfolio 15.6 2.5 13.1

Ten Worst Performers (Benchmark: Russell 1000 Value Index)


Lear Corp 0.2 0.1 0.1 -21.6

NVR Inc. 0.2 0.0 0.2 -16.8

Applied Materials Inc. 1.1 0.0 1.1 -15.9

Ford Motor Co 0.9 0.3 0.6 -15.3

AutoNation Inc 0.1 0.0 0.1 -14.5

General Motors Co 1.3 0.3 1.0 -13.6

PulteGroup Inc 0.2 0.0 0.2 -13.6

Synovus Financial Corp. 0.1 0.0 0.1 -12.9

Lam Research Corp 0.7 0.0 0.7 -11.6

Toll Brothers Inc. 0.1 0.0 0.1 -10.7

% of Portfolio 4.9 0.7 4.2Buy and Hold Sector Attribution (Benchmark: Russell 1000 Value Index)

Allocation

Portfolio Benchmark

Performance

Portfolio Benchmark

Attribution

Stock Sector Total

Communication Services 3.9 6.6 11.74 6.21 0.22 -0.01 0.21

Consumer Discretionary 12.0 5.4 2.36 0.32 0.23 -0.37 -0.13

Consumer Staples 1.0 7.2 1.01 4.69 -0.04 0.06 0.02

Energy 5.5 10.8 3.68 1.42 0.14 0.22 0.36

Financials 32.6 23.5 4.38 4.19 0.06 -0.16 -0.10

Health Care 17.0 14.3 15.52 15.60 -0.12 0.24 0.12

Industrials 11.3 8.0 16.28 8.32 0.87 0.10 0.96

Information Technology 14.8 9.6 12.23 8.20 0.33 0.14 0.47

Materials 0.8 4.1 5.66 -0.08 0.05 0.19 0.24

Real Estate 0.0 4.8 0.00 0.89 0.00 0.24 0.24

Utilities 0.1 5.6 2.78 2.45 0.00 0.18 0.18

Cash 1.0 0.0 0.49 0.00 0.00 -0.06 -0.06

Total 100.0 100.0 8.21 5.70 1.76 0.76 2.52

Portfolio Comparison

Brandywine DynamicLarge Cap Value

Russell 1000 ValueIndex

Market Capitalization (%)

Greater than 25000M 79.6 70.3

16000M To 25000M 11.3 9.9

12000M To 16000M 2.2 5.7

8000M To 12000M 3.2 5.9

5000M To 8000M 2.3 5.3

3000M To 5000M 0.5 2.5

1000M To 3000M 0.0 0.5

500M To 1000M 0.0 0.0

200M To 500M 0.0 0.0

Cash 0.9 0.0

Holdings Based Analysis

Brandywine Dynamic Large Cap Value


Performance attribution is calculated monthly based on a "buy and hold" strategy for portfolio level securities using transaction data provided by the client's custodialbank.

Page 31

Peer Group Analysis - IM U.S. Large Cap Value Equity (SA+CF)


-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00

Re

turn


Vanguard EI (VEIRX) 5.34 (57) N/A N/A N/A N/A N/A N/A��

Russell 1000 Value Index 5.70 (49) 3.92 (71) 9.45 (77) 12.25 (83) 13.55 (71) 8.76 (74) 10.72 (71)��

Median 5.64 5.14 11.72 14.90 14.64 9.93 11.57

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Re

turn

2017 2016 2015 2014 2013

Vanguard EI (VEIRX) N/A N/A N/A N/A N/A��

Russell 1000 Value Index 13.66 (89) 17.34 (25) -3.83 (70) 13.45 (35) 32.53 (62)��

Median 17.22 14.35 -2.22 12.24 34.26

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Vanguard EI (VEIRX) 1.40 (61) N/A N/A N/A N/A N/A

Russell 1000 Value Index 1.18 (65) -2.83 (75) 5.33 (76) 3.11 (80) 1.34 (73) 3.27 (70)

IM U.S. Large Cap Value Equity (SA+CF) Median 1.70 -1.96 6.31 4.10 2.07 3.99

Performance Review


Vanguard EI (VEIRX)

NONE

Page 32


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 147,013,784,073 126,935,326,977

Median Mkt. Cap ($) 30,932,027,490 9,935,306,040





Beta N/A 1.00




JPMorgan Chase & Co 3.9 2.8 1.1 8.9

Johnson & Johnson 3.5 2.2 1.3 14.6

Verizon Communications Inc 2.7 1.6 1.1 7.4

Chevron Corp 2.7 1.7 1.0 -2.4

Cisco Systems Inc 2.6 1.7 0.9 13.9

Pfizer Inc 2.4 1.9 0.5 22.5

Intel Corp 2.4 1.6 0.8 -4.3

Eli Lilly and Co 2.1 0.3 1.8 26.4

Exxon Mobil Corp 2.1 2.6 -0.5 3.8

Merck & Co Inc. 2.0 1.3 0.7 17.7

% of Portfolio 26.4 17.7 8.7Ten Best Performers (Benchmark: Russell 1000 Value Index)


QUALCOMM Inc. 0.8 0.8 0.0 29.5

Eli Lilly and Co 2.1 0.3 1.8 26.4

CF Industries Holdings Inc 0.1 0.1 0.0 23.4

CVS Health Corp 0.2 0.6 -0.4 23.3

Pfizer Inc 2.4 1.9 0.5 22.5

Walgreens Boots Alliance Inc 0.1 0.5 -0.4 22.2

Kennametal Inc. 0.0 0.0 0.0 22.0

NRG Energy Inc 0.1 0.1 0.0 21.9

Norfolk Southern Corp 0.1 0.4 -0.3 20.2

Lockheed Martin Corp 1.2 0.1 1.1 17.8

% of Portfolio 7.1 4.8 2.3


Portfolio WtBenchmark

WtActive Wt

QuarterlyRtrn

Western Digital Corp 0.1 0.1 0.0 -23.7

Las Vegas Sands Corp 0.2 0.1 0.1 -21.3

Polaris Industries Inc 0.1 0.0 0.1 -16.9

General Electric Co 0.2 0.7 -0.5 -16.3

Ford Motor Co 0.0 0.3 -0.3 -15.3

Seagate Technology Plc 0.1 0.0 0.1 -15.0

Delek US Holdings Inc 0.1 0.0 0.1 -15.0

Copa Holdings SA 0.1 0.0 0.1 -14.7

International Game Technology PLC 0.0 0.0 0.0 -14.2

General Motors Co 0.3 0.3 0.0 -13.6

% of Portfolio 1.2 1.5 -0.3

Buy and Hold Sector Attribution (Benchmark: Russell 1000 Value Index)

Allocation

Portfolio Benchmark

Performance

Portfolio Benchmark

Attribution

Stock Sector Total

Communication Services 5.5 6.6 6.32 6.21 0.00 -0.01 -0.01

Consumer Discretionary 3.7 5.4 -0.21 0.32 -0.02 0.09 0.07

Consumer Staples 12.2 7.2 2.70 4.69 -0.21 -0.04 -0.25

Energy 11.9 10.8 -1.31 1.42 -0.34 -0.04 -0.38

Financials 16.1 23.5 3.48 4.19 -0.11 0.11 0.00

Health Care 15.5 14.3 15.41 15.60 -0.04 0.12 0.08

Industrials 9.8 8.0 12.15 8.32 0.39 0.06 0.45

Information Technology 12.3 9.6 5.31 8.20 -0.30 0.18 -0.12

Materials 3.8 4.1 -1.83 -0.08 -0.06 0.01 -0.05

Real Estate 0.8 4.8 4.22 0.89 0.03 0.19 0.22

Utilities 8.0 5.6 2.70 2.45 0.02 -0.08 -0.06

Other 0.3 0.0 5.67 0.00 0.00 0.00 0.00

Total 100.0 100.0 5.65 5.70 -0.63 0.59 -0.04


Vanguard EquityIncome (VEIRX)

Russell 1000 ValueIndex



16000M To 25000M 5.7 9.9

12000M To 16000M 2.3 5.7

8000M To 12000M 0.9 5.9

5000M To 8000M 1.3 5.3

3000M To 5000M 1.2 2.5

1000M To 3000M 0.8 0.5

500M To 1000M 0.0 0.0

200M To 500M 0.0 0.0


Vanguard Equity Income (VEIRX)



Page 33

Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF)


-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Re

turn


Sawgrass 10.30 (9) 15.44 (58) 23.89 (57) 20.18 (73) 17.10 (75) 13.12 (76) 14.24 (73)��

R1000 Growth 9.17 (25) 17.09 (46) 26.30 (37) 24.10 (35) 20.55 (23) 15.95 (30) 16.58 (31)��

Median 8.19 16.46 24.66 22.76 18.85 15.02 15.70

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

60.00

Re

turn

2017 2016 2015 2014 2013

Sawgrass 23.28 (81) 6.46 (34) 1.94 (76) 13.72 (32) 34.82 (47)��

R1000 Growth 30.21 (38) 7.08 (27) 5.67 (45) 13.05 (38) 33.48 (59)��

Median 28.10 4.66 4.97 11.90 34.52

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Sawgrass 4.57 (59) 0.09 (81) 7.31 (34) 4.09 (76) 3.31 (82) 6.83 (79)

R1000 Growth 5.76 (40) 1.42 (60) 7.86 (21) 5.90 (34) 4.67 (55) 8.91 (46)


Performance Review


Sawgrass

NONE

Page 34









0.0

6.0

12.0

18.0

24.0

30.0

Sa

wg

ras

s (%

)

0.0 6.0 12.0 18.0 24.0 30.0

R1000 Growth (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Sawgrass 20 3 (15%) 5 (25%) 9 (45%) 3 (15%)��

R1000 Growth 20 3 (15%) 14 (70%) 3 (15%) 0 (0%)��

16.00

18.00

20.00

22.00

Re

turn

(%)

7.56 7.98 8.40 8.82 9.24 9.66 10.08 10.50 10.92



Sawgrass 17.10 8.28��

R1000 Growth 20.55 10.02��

Median 18.85 10.23¾

13.43

14.22

15.01

15.80

16.59

17.38

Re

turn

(%)

7.00 7.20 7.40 7.60 7.80 8.00 8.20 8.40 8.60



Sawgrass 14.24 7.24��

R1000 Growth 16.58 7.50��

Median 15.70 8.28¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Sawgrass 3.93 82.70 78.45 1.46 -0.79 1.87 0.76 3.58

R1000 Growth 0.00 100.00 100.00 0.00 N/A 1.85 1.00 4.26 90 Day U.S. Treasury Bill 10.00 2.61 -2.64 0.75 -1.85 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Sawgrass 3.44 84.87 81.86 0.77 -0.63 1.51 0.81 4.31

R1000 Growth 0.00 100.00 100.00 0.00 N/A 1.51 1.00 4.88 90 Day U.S. Treasury Bill 10.22 1.67 -1.34 0.46 -1.51 N/A 0.00 0.01

Performance Review


Sawgrass

NONE

Page 35

Portfolio Characteristics (Benchmark: Russell 1000 Growth Index)

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 226,455,876,591 313,613,099,484

Median Mkt. Cap ($) 66,495,168,490 12,897,250,560







Top Ten Equity Holdings (Benchmark: Russell 1000 Growth Index)


Apple Inc 6.4 7.9 -1.5 22.4

Microsoft Corp 4.8 5.9 -1.1 16.4

Alphabet Inc 4.0 2.6 1.4 6.9

Home Depot Inc. (The) 3.5 1.7 1.8 6.7

Walt Disney Co (The) 3.3 0.9 2.4 12.5

Amgen Inc 3.1 0.9 2.2 13.1

Mastercard Inc 3.1 1.5 1.6 13.4

TJX Companies Inc (The) 3.0 0.5 2.5 18.2

Lab Corp 2.9 0.0 2.9 -3.3

Ecolab Inc. 2.8 0.1 2.7 12.0

% of Portfolio 36.9 22.0 14.9Ten Best Performers (Benchmark: Russell 1000 Growth Index)


Apple Inc 6.4 7.9 -1.5 22.4

Abbott Laboratories 1.9 0.0 1.9 20.3

TJX Companies Inc (The) 3.0 0.5 2.5 18.2

Lockheed Martin Corp 1.9 0.6 1.3 17.8

Cooper Companies Inc. (The) 2.0 0.0 2.0 17.7

Oracle Corp 2.7 0.1 2.6 17.5

Microsoft Corp 4.8 5.9 -1.1 16.4

Honeywell International Inc 2.5 0.6 1.9 16.1

F5 Networks Inc 2.4 0.1 2.3 15.6

AutoZone Inc 2.0 0.1 1.9 15.6

% of Portfolio 29.6 15.8 13.8

Ten Worst Performers (Benchmark: Russell 1000 Growth Index)


WtActive Wt

QuarterlyRtrn

Lab Corp 2.9 0.0 2.9 -3.3

Cognizant Technology 1.9 0.3 1.6 -2.1

Varian Medical Systems Inc 0.8 0.1 0.7 -1.6

Expeditors Intl 1.8 0.1 1.7 0.6

Marsh & McLennan Companies Inc. 2.0 0.1 1.9 1.4

AbbVie Inc 1.7 1.0 0.7 2.1

Illinois Tool Works Inc. 1.4 0.3 1.1 2.6

Citrix Systems Inc. 1.0 0.1 0.9 6.0

VMware Inc 1.0 0.1 0.9 6.2

Coca-Cola Co (The) 1.7 1.0 0.7 6.2

% of Portfolio 16.2 3.1 13.1

Buy and Hold Sector Attribution (Benchmark: Russell 1000 Growth Index)

Allocation

Portfolio Benchmark

Performance

Portfolio Benchmark

Attribution

Stock Sector Total

Communication Services 11.5 12.7 8.71 -1.07 1.16 0.13 1.28

Consumer Discretionary 14.3 15.2 10.75 10.26 0.06 -0.03 0.02

Consumer Staples 7.3 5.6 10.84 6.15 0.33 -0.03 0.30

Energy 0.0 1.0 0.00 -4.58 0.00 0.14 0.14

Financials 2.1 4.4 1.41 3.25 -0.04 0.13 0.09

Health Care 16.3 13.6 8.74 12.72 -0.59 0.09 -0.50

Industrials 12.5 12.0 10.63 10.65 0.00 0.08 0.08

Information Technology 29.5 31.8 14.11 13.80 0.04 -0.02 0.02

Materials 2.7 1.7 12.02 -0.09 0.33 -0.08 0.25

Real Estate 0.0 2.1 0.00 0.19 0.00 0.20 0.20

Cash 3.7 0.0 0.49 0.00 0.00 -0.31 -0.31

Total 100.0 100.0 10.72 9.15 1.28 0.29 1.57


SawgrassRussell 1000 Growth

Index



16000M To 25000M 12.1 6.0

12000M To 16000M 8.4 4.7

8000M To 12000M 0.8 3.6

5000M To 8000M 1.4 3.3

3000M To 5000M 0.0 1.0

1000M To 3000M 0.0 0.1

500M To 1000M 0.0 0.0

Cash 3.1 0.0


Sawgrass



Page 36

Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF)


-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Re

turn


Fred Alger 7.97 (55) 19.08 (32) 27.71 (29) 24.72 (27) N/A N/A N/A��

R1000 G 9.17 (25) 17.09 (46) 26.30 (37) 24.10 (35) 20.55 (23) 15.95 (30) 16.58 (31)��

Median 8.19 16.46 24.66 22.76 18.85 15.02 15.70

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

60.00

Re

turn

2017 2016 2015 2014 2013

Fred Alger 32.60 (23) N/A N/A N/A N/A��

R1000 G 30.21 (38) 7.08 (27) 5.67 (45) 13.05 (38) 33.48 (59)��

Median 28.10 4.66 4.97 11.90 34.52

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Fred Alger 7.09 (17) 2.99 (37) 7.24 (37) 5.74 (40) 5.02 (49) 11.34 (7)

R1000 G 5.76 (40) 1.42 (60) 7.86 (21) 5.90 (34) 4.67 (55) 8.91 (46)


Performance Review


Fred Alger

NONE

Page 37

Portfolio Characteristics (Benchmark: Russell 1000 Growth Index)

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 357,102,557,306 313,613,099,484

Median Mkt. Cap ($) 53,600,216,250 12,897,250,560





Beta N/A 1.00


Top Ten Equity Holdings (Benchmark: Russell 1000 Growth Index)


Amazon.com Inc 9.4 5.9 3.5 17.8

Microsoft Corp 8.4 5.9 2.5 16.4

Alphabet Inc 5.3 2.6 2.7 7.0

Visa Inc 5.2 1.9 3.3 13.5

Apple Inc 4.9 7.9 -3.0 22.4

Unitedhealth Group Inc 4.6 1.8 2.8 8.8

salesforce.com Inc 3.8 0.8 3.0 16.6

Facebook Inc 3.1 2.8 0.3 -15.4

Home Depot Inc. (The) 2.8 1.7 1.1 6.7

Adobe Systems Inc 2.1 1.0 1.1 10.7

% of Portfolio 49.6 32.3 17.3Ten Best Performers (Benchmark: Russell 1000 Growth Index)


WtActive Wt

QuarterlyRtrn

Tandem Diabetes Care Inc 0.3 0.0 0.3 94.6

Illumina Inc 1.3 0.4 0.9 31.4

lululemon athletica inc 0.5 0.1 0.4 30.1

GW Pharmaceuticals PLC 0.4 0.0 0.4 23.8

Apple Inc 4.9 7.9 -3.0 22.4

Sarepta Therapeutics Inc 1.0 0.1 0.9 22.2

Biogen Inc 0.5 0.5 0.0 21.7

Norwegian Cruise Line Holdings Ltd 0.5 0.0 0.5 21.5

Blackstone Group LP (The) 0.5 0.0 0.5 20.3

Abbott Laboratories 0.6 0.0 0.6 20.3

% of Portfolio 10.5 9.0 1.5

Ten Worst Performers (Benchmark: Russell 1000 Growth Index)


Applied Materials Inc. 1.4 0.3 1.1 -15.9

Facebook Inc 3.1 2.8 0.3 -15.4

Vulcan Materials Co 1.4 0.1 1.3 -13.6

Alibaba Group Holding Ltd 2.1 0.0 2.1 -11.2

Marvell Technology Group Ltd 0.1 0.0 0.1 -9.7

Aptiv Plc 0.2 0.1 0.1 -8.2

Pioneer Natural Resources 0.5 0.1 0.4 -7.9

Altaba Inc 1.1 0.0 1.1 -7.0

Zayo Group Holdings Inc 0.5 0.0 0.5 -4.8

Netflix Inc 0.8 1.1 -0.3 -4.4

% of Portfolio 11.2 4.5 6.7Buy and Hold Sector Attribution (Benchmark: Russell 1000 Growth Index)

Allocation

Portfolio Benchmark

Performance

Portfolio Benchmark

Attribution

Stock Sector Total

Communication Services 12.7 12.7 -4.09 -1.07 -0.41 0.02 -0.39

Consumer Discretionary 18.8 15.2 9.39 10.26 -0.16 0.04 -0.13

Consumer Staples 0.3 5.6 -0.69 6.15 -0.01 0.16 0.15

Energy 0.7 1.0 -8.98 -4.58 -0.03 0.03 0.01

Financials 5.6 4.4 5.22 3.25 0.12 -0.07 0.04

Health Care 14.1 13.6 14.36 12.72 0.26 0.01 0.27

Industrials 8.0 12.0 13.14 10.65 0.18 -0.07 0.10

Information Technology 30.5 31.8 11.48 13.80 -0.71 -0.04 -0.75

Materials 4.0 1.7 -1.08 -0.09 -0.04 -0.21 -0.25

Real Estate 1.6 2.1 -0.29 0.19 -0.02 0.05 0.02

Other 0.0 0.0 4.82 0.00 0.00 0.00 0.00

Cash 3.6 0.0 0.49 0.00 0.00 -0.34 -0.34

Total 100.0 100.0 7.89 9.15 -0.83 -0.44 -1.27


Fred Alger (Equity)Russell 1000 Growth

Index



16000M To 25000M 3.0 6.0

12000M To 16000M 2.8 4.7

8000M To 12000M 3.7 3.6

5000M To 8000M 0.5 3.3

3000M To 5000M 0.0 1.0

1000M To 3000M 0.3 0.1

500M To 1000M 0.0 0.0

Cash 1.8 0.0


Fred Alger (Equity)


Page 38

Peer Group Analysis - IM U.S. SMID Cap Value Equity (SA+CF)


-8.00

-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00

28.00

Re

turn


Cambiar 5.52 (21) 10.71 (11) 15.15 (19) N/A N/A N/A N/A��

R2500 Value 2.67 (56) 5.75 (43) 10.24 (49) 12.96 (64) 14.51 (46) 10.02 (54) 9.99 (62)��

Median 2.95 5.20 10.13 13.89 14.04 10.12 10.48

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Re

turn

2017 2016 2015 2014 2013

Cambiar N/A N/A N/A N/A N/A��

R2500 Value 10.36 (85) 25.20 (24) -5.49 (69) 7.11 (50) 33.32 (74)��

Median 14.63 19.40 -3.01 7.06 35.78

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Cambiar 4.39 (28) 0.50 (13) 4.01 (70) 2.87 (77) N/A N/A

R2500 Value 5.80 (12) -2.65 (82) 4.25 (67) 3.83 (59) 0.32 (71) 1.62 (80)

IM U.S. SMID Cap Value Equity (SA+CF) Median 3.06 -1.36 5.14 3.97 1.61 3.79

Performance Review


Cambiar

NONE

Page 39


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 7,897,094,094 4,973,410,982

Median Mkt. Cap ($) 7,621,089,800 1,184,046,450





Beta N/A 1.00

Number of Stocks 42 1,749



WtActive Wt Qtr Rtrn

Advance Auto Parts Inc. 3.2 0.0 3.2 24.1

Booz Allen Hamilton Holding Corp 2.9 0.0 2.9 13.9

Hubbell Inc 2.9 0.1 2.8 27.1

Leidos Holdings Inc 2.8 0.4 2.4 17.7

Alaska Air Group Inc. 2.7 0.3 2.4 14.6

Atmos Energy Corp 2.7 0.4 2.3 4.7

Ball Corp 2.6 0.0 2.6 24.0

Euronet Worldwide Inc 2.6 0.1 2.5 19.6

AXIS Capital Holdings Ltd 2.5 0.2 2.3 3.8

Cimarex Energy Co. 2.5 0.0 2.5 -8.5

% of Portfolio 27.4 1.5 25.9

Ten Best Performers (Benchmark: Russell 2500 Value Index)


WtActive Wt

QuarterlyRtrn

Hubbell Inc 2.9 0.1 2.8 27.1

Advance Auto Parts Inc. 3.2 0.0 3.2 24.1

Ball Corp 2.6 0.0 2.6 24.0

Norwegian Cruise Line Holdings Ltd 2.5 0.0 2.5 21.5

Euronet Worldwide Inc 2.6 0.1 2.5 19.6

Leidos Holdings Inc 2.8 0.4 2.4 17.7

Dun & Bradstreet Corp (The) 2.4 0.1 2.3 16.6

Alaska Air Group Inc. 2.7 0.3 2.4 14.6

Block H&R Inc 2.2 0.2 2.0 14.1

Booz Allen Hamilton Holding Corp 2.9 0.0 2.9 13.9

% of Portfolio 26.8 1.2 25.6



BankUnited Inc 2.0 0.1 1.9 -12.9

Knight-Swift Trans Holds 2.4 0.2 2.2 -9.6

TreeHouse Foods Inc 2.0 0.1 1.9 -8.9

Cimarex Energy Co. 2.5 0.0 2.5 -8.5

East West Bancorp Inc. 2.2 0.3 1.9 -7.1

Umpqua Holdings Corp 2.3 0.2 2.1 -7.0

Cabot Oil & Gas Corp 1.4 0.0 1.4 -5.1

Zions Bancorporation NA 2.0 0.4 1.6 -4.3

J.M. Smucker Co (The) 2.3 0.0 2.3 -3.8

Parsley Energy Inc 1.5 0.1 1.4 -3.4

% of Portfolio 20.6 1.4 19.2Buy and Hold Sector Attribution (Benchmark: Russell 2500 Value Index)

Allocation

Portfolio Benchmark

Performance

Portfolio Benchmark

Attribution

Stock Sector Total

Communication Services 0.0 2.9 0.00 4.99 0.00 -0.07 -0.07

Consumer Discretionary 10.9 8.6 15.06 1.34 1.49 -0.05 1.44

Consumer Staples 4.7 3.4 -6.21 -4.26 -0.10 -0.10 -0.20

Energy 7.1 7.1 -1.65 1.45 -0.16 0.00 -0.16

Financials 19.1 22.9 -1.49 0.92 -0.47 0.07 -0.40

Health Care 9.6 5.2 2.30 10.41 -0.81 0.41 -0.41

Industrials 15.3 13.7 12.92 7.16 0.84 0.07 0.92

Information Technology 13.0 8.8 12.41 4.97 0.94 0.10 1.03

Materials 2.4 6.2 24.04 1.64 0.51 0.04 0.55

Real Estate 7.8 15.2 0.38 -0.26 0.05 0.22 0.27

Utilities 5.3 6.0 5.10 4.23 0.05 -0.01 0.03

Cash 4.7 0.0 0.49 0.00 0.00 -0.02 -0.02

Total 100.0 100.0 5.65 2.66 2.33 0.66 3.00


Cambiar Investors Equity


12000M To 16000M 17.8

8000M To 12000M 29.6

5000M To 8000M 31.5

3000M To 5000M 13.2

1000M To 3000M 4.4

Cash 3.4


Cambiar Investors Equity


Page 40

Peer Group Analysis - IM International Multi-Cap Core Equity (MF)


-10.00

-7.00

-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

Re

turn


Intl Equity 1.84 (11) 1.40 (3) 6.48 (3) 11.93 (10) 10.17 (16) 3.13 (76) 3.82 (63)��

Intl Policy 0.71 (50) -3.09 (62) 1.76 (40) 10.33 (33) 9.97 (19) 3.96 (51) 4.12 (52)��

Median 0.70 -2.76 1.39 9.89 8.60 3.97 4.21

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

Re

turn

2017 2016 2015 2014 2013

Intl Equity 29.40 (7) 0.64 (60) -8.33 (95) -5.91 (63) 18.64 (62)��

Intl Policy 27.19 (25) 4.50 (19) -5.66 (88) -3.87 (28) 15.29 (80)��

Median 25.27 1.11 -1.03 -5.13 20.35

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Intl Equity -1.10 (15) 0.67 (3) 5.02 (7) 5.11 (70) 7.01 (14) 9.55 (3)

Intl Policy -2.61 (58) -1.18 (75) 5.00 (7) 6.16 (29) 5.78 (74) 7.86 (38)

IM International Multi-Cap Core Equity (MF) Median -2.39 -0.84 3.85 5.66 6.18 7.74

Performance Review


International Equity

NONE

Page 41









-16.0

-8.0

0.0

8.0

16.0

24.0

Intl

Eq

uit

y (%

)

-16.0 -8.0 0.0 8.0 16.0 24.0

Intl Policy (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Intl Equity 20 3 (15%) 2 (10%) 4 (20%) 11 (55%)��

Intl Policy 20 1 (5%) 3 (15%) 8 (40%) 8 (40%)��

8.32

8.84

9.36

9.88

10.40

10.92

Re

turn

(%)

10.00 10.20 10.40 10.60 10.80 11.00



Intl Equity 10.17 10.29��

Intl Policy 9.97 10.73��

Median 8.60 10.12¾

3.60

3.80

4.00

4.20

4.40

Re

turn

(%)

10.40 10.60 10.80 11.00 11.20 11.40 11.60



Intl Equity 3.82 11.29��

Intl Policy 4.12 11.10��

Median 4.21 10.62¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Intl Equity 3.75 90.02 79.06 1.18 0.04 0.92 0.90 6.13

Intl Policy 0.00 100.00 100.00 0.00 N/A 0.87 1.00 5.96 90 Day U.S. Treasury Bill 10.74 2.53 -2.62 0.81 -0.87 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Intl Equity 3.58 96.81 97.72 -0.10 -0.07 0.35 0.96 7.47

Intl Policy 0.00 100.00 100.00 0.00 N/A 0.38 1.00 7.19 90 Day U.S. Treasury Bill 11.10 1.80 -1.35 0.49 -0.38 N/A 0.00 0.01

Performance Review


International Equity

NONE

Page 42

Peer Group Analysis - IM International Multi-Cap Core Equity (MF)


-10.00

-7.00

-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

Re

turn


Vanguard TIS 0.53 (61) -3.12 (64) 1.61 (45) 10.09 (44) 9.95 (20) 4.36 (39) N/A��

FTSE Glb ex USA AC 0.58 (58) -2.96 (56) 2.28 (28) 10.66 (25) 10.52 (11) 4.73 (25) 4.88 (26)��

Median 0.70 -2.76 1.39 9.89 8.60 3.97 4.21

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

Re

turn

2017 2016 2015 2014 2013

Vanguard TIS 27.55 (19) 4.67 (16) -4.26 (80) -4.20 (35) N/A��

FTSE Glb ex USA AC 27.77 (17) 5.04 (11) -4.03 (79) -3.12 (22) 15.90 (76)��

Median 25.27 1.11 -1.03 -5.13 20.35

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Vanguard TIS -3.17 (71) -0.46 (28) 4.88 (9) 5.95 (36) 5.82 (71) 8.47 (13)

FTSE Glb ex USA AC -2.45 (52) -1.09 (69) 5.40 (5) 6.09 (31) 5.83 (71) 7.97 (31)

IM International Multi-Cap Core Equity (MF) Median -2.39 -0.84 3.85 5.66 6.18 7.74

Performance Review


Vanguard TIS

NONE

Page 43








-5.0

0.0

5.0

10.0

15.0

Va

ng

ua

rd T

IS (%

)

-5.0 0.0 5.0 10.0 15.0

FTSE Glb ex USA AC (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Vanguard TIS 8 4 (50%) 4 (50%) 0 (0%) 0 (0%)��

FTSE Glb ex USA AC 20 6 (30%) 4 (20%) 8 (40%) 2 (10%)��

8.19

8.82

9.45

10.08

10.71

11.34

Re

turn

(%)

10.00 10.20 10.40 10.60 10.80



Vanguard TIS 9.95 10.11��

FTSE Glb ex USA AC 10.52 10.64��

Median 8.60 10.12¾

3.90

4.20

4.50

4.80

5.10

Re

turn

(%)

10.56 10.64 10.72 10.80 10.88 10.96 11.04



Vanguard TIS N/A N/A��

FTSE Glb ex USA AC 4.88 10.95��

Median 4.21 10.62¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Vanguard TIS 1.74 94.94 95.35 0.07 -0.33 0.91 0.94 5.53

FTSE Glb ex USA AC 0.00 100.00 100.00 0.00 N/A 0.92 1.00 5.85 90 Day U.S. Treasury Bill 10.65 2.52 -2.73 0.81 -0.92 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Vanguard TIS N/A N/A N/A N/A N/A N/A N/A N/A

FTSE Glb ex USA AC 0.00 100.00 100.00 0.00 N/A 0.45 1.00 6.94 90 Day U.S. Treasury Bill 10.94 1.78 -1.41 0.49 -0.45 N/A 0.00 0.01

Performance Review


Vanguard TIS

NONE

Page 44

Fund Information

Fund Name : Vanguard STAR Funds: Vanguard Total International Stock Index Fund; AdmiralShares


Fund Family : Vanguard Group Inc Portfolio Manager : Perre/Franquin

Ticker : VTIAX PM Tenure : 2010--2017

Inception Date : 11/29/2010 Fund Style : IM International Multi-Cap Core Equity (MF)

Fund Assets : $71,457 Million Style Benchmark : FTSE Global ex USA All Cap Index



Portfolio Benchmark

Total Securities 6,284 5,998

Avg. Market Cap ($) 58,990,185,215 -999

Price/Earnings (P/E) 21.27 N/A

Price/Book (P/B) 3.19 N/A

Dividend Yield 3.00 N/A


5 Yr EPS 11.11 N/A




Vanguard Market Liquidity Fund 2.7 %

Tencent Holdings Ltd ORD 1.2 %

Nestle SA ORD 1.0 %

Alibaba Group Holding Ltd DR 0.8 %

Samsung Electronics Co Ltd ORD 0.8 %

HSBC Holdings PLC ORD 0.8 %

Taiwan Semiconductor Manufacturing 0.7 %

Toyota Motor Corp ORD 0.7 %

Novartis AG ORD 0.7 %

Royal Dutch Shell PLC ORD 0.6 %


Vanguard Tot I Stk;Adm (VTIAX)

FTSE Global ex USA All Cap Index

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Other

Utilities

Real Estate

Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


Communication Services


Vanguard Tot I Stk;Adm (VTIAX)

FTSE Global ex USA All Cap Index

0.0 6.0 12.0 18.0 24.0 30.0 36.0 42.0

Other

Frontier Markets

Middle East

United Kingdom

Europe ex UK

Japan

Pacific ex Japan

EM Mid East+Africa

North America

EM Latin America

EM Europe

EM Asia

Strategy Review

Vanguard Tot I Stk;Adm (VTIAX)As of September 30, 2018


Page 45

Peer Group Analysis - IM International Multi-Cap Growth Equity (MF)


-12.00

-8.00

-4.00

0.00

4.00

8.00

12.00

16.00

20.00

24.00R

etu

rn


WCM Focused Intl (WCMIX) 3.03 (2) 5.78 (2) 11.23 (3) 13.66 (11) N/A N/A N/A��

MSCI AC World ex USA 0.80 (33) -2.67 (65) 2.25 (56) 10.84 (34) 10.49 (28) 4.45 (67) 4.60 (58)��

Median 0.24 -1.59 2.64 9.91 9.11 5.09 4.87

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

52.00

Re

turn

2017 2016 2015 2014 2013

WCM Focused Intl (WCMIX) 31.24 (36) N/A N/A N/A N/A��

MSCI AC World ex USA 27.77 (58) 5.01 (7) -5.25 (91) -3.44 (35) 15.78 (79)��

Median 28.55 -1.00 0.35 -4.95 19.42

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

WCM Focused Intl (WCMIX) 0.87 (12) 1.78 (14) 5.15 (27) 4.30 (90) 8.18 (33) 10.62 (17)

MSCI AC World ex USA -2.39 (66) -1.08 (80) 5.06 (28) 6.25 (48) 5.99 (85) 7.98 (63)

IM International Multi-Cap Growth Equity (MF) Median -1.57 -0.08 4.26 6.10 7.47 8.57

Performance Review


WCM Focused Intl (WCMIX)

NONE

Page 46

Fund Information

Fund Name : Investment Managers Series Trust: WCM Focused International Growth Fund;Institutional Class Shares


Fund Family : WCM Investment Management Portfolio Manager : Team Managed

Ticker : WCMIX PM Tenure :

Inception Date : 05/31/2011 Fund Style : IM International Multi-Cap Growth Equity (MF)

Fund Assets : $6,015 Million Style Benchmark : MSCI EAFE IMI Growth



Portfolio Benchmark

Total Securities 35 N/A

Avg. Market Cap ($) 75,501,079,508 -

Price/Earnings (P/E) 30.22 N/A

Price/Book (P/B) 8.19 N/A

Dividend Yield 1.56 N/A


5 Yr EPS 14.33 N/A




Keyence Corp ORD 4.4 %

CSL Ltd ORD 4.1 %

LVMH Moet Hennessy Louis Vuitton 3.9 %

Accenture PLC ORD 3.8 %

Canadian Pacific Railway Ltd ORD 3.7 %

AIA Group Ltd ORD 3.6 %

Experian PLC ORD 3.5 %

Chubb Ltd ORD 3.5 %

Adidas AG ORD 3.5 %

Compass Group PLC ORD 3.3 %


WCM Focused Itl Gro;Inst (WCMIX)

MSCI EAFE IMI Growth

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Other


Industrials

Health Care

Financials

Energy

Consumer Staples



WCM Focused Itl Gro;Inst (WCMIX)

MSCI EAFE IMI Growth

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Other

United Kingdom

Europe ex UK

Japan

Pacific ex Japan

North America

EM Latin America

EM Asia

Strategy Review

WCM Focused Itl Gro;Inst (WCMIX)As of September 30, 2018


Page 47

Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF)


-2.20

-1.60

-1.00

-0.40

0.20

0.80

1.40

2.00

2.60

3.20

3.80

Re

turn


Fixed Income 0.41 (40) -0.52 (59) -0.94 (96) 1.41 (4) 2.10 (10) 1.70 (51) 2.05 (35)��

Fixed Income Policy 0.11 (96) -0.86 (95) -0.93 (96) -0.34 (94) 0.97 (90) 1.32 (94) 1.57 (86)��

Median 0.37 -0.48 -0.39 0.11 1.37 1.70 1.91

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

Re

turn

2017 2016 2015 2014 2013

Fixed Income 2.85 (28) 3.77 (12) 0.54 (93) 3.63 (49) -1.37 (91)��

Fixed Income Policy 2.27 (76) 1.97 (78) 0.90 (85) 4.05 (33) -2.19 (99)��

Median 2.54 2.39 1.30 3.57 -0.53

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Fixed Income -0.62 (100) -0.31 (8) -0.42 (100) 0.93 (13) 0.53 (99) 1.79 (3)

Fixed Income Policy 0.09 (61) -1.05 (82) -0.07 (77) 0.72 (49) 0.92 (73) 0.68 (81)

IM U.S. Intermediate Duration (SA+CF) Median 0.12 -0.90 0.01 0.72 1.01 0.81

Performance Review


Fixed Income

NONE

Page 48









0.0

1.0

2.0

3.0

4.0

5.0

Fix

ed

Inc

om

e (%

)

0.0 1.0 2.0 3.0 4.0 5.0

Fixed Income Policy (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Fixed Income 20 3 (15%) 9 (45%) 3 (15%) 5 (25%)��

Fixed Income Policy 20 0 (0%) 0 (0%) 5 (25%) 15 (75%)��

0.40

0.80

1.20

1.60

2.00

2.40

Re

turn

(%)

1.86 1.89 1.92 1.95 1.98 2.01 2.04



Fixed Income 2.10 2.00��

Fixed Income Policy 0.97 1.94��

Median 1.37 1.89¾

1.40

1.60

1.80

2.00

2.20

Re

turn

(%)

1.88 1.92 1.96 2.00 2.04 2.08 2.12



Fixed Income 2.05 2.00��

Fixed Income Policy 1.57 2.07��

Median 1.91 1.90¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Fixed Income 1.96 72.00 4.00 1.60 0.57 0.63 0.52 1.05

Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 0.09 1.00 1.32 90 Day U.S. Treasury Bill 1.96 13.16 -19.62 0.81 -0.09 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Fixed Income 1.68 78.44 39.35 1.05 0.28 0.76 0.64 1.08

Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 0.52 1.00 1.23 90 Day U.S. Treasury Bill 2.09 6.81 -11.84 0.51 -0.52 N/A -0.01 0.01

Performance Review


Fixed Income

NONE

Page 49

Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF)


-2.06

-1.47

-0.88

-0.29

0.30

0.89

1.48

2.07

2.66

3.25

3.84

Re

turn


Galliard Core 0.18 (91) -0.65 (82) -0.56 (67) 0.09 (54) 1.48 (34) 1.96 (23) 2.29 (21)��

BC Intm Agg 0.11 (96) -0.86 (95) -0.93 (96) -0.34 (94) 0.95 (92) 1.44 (82) 1.70 (76)��

Median 0.37 -0.48 -0.39 0.11 1.37 1.70 1.91

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

Re

turn

2017 2016 2015 2014 2013

Galliard Core 2.88 (27) 2.66 (36) 1.85 (11) 4.83 (15) -0.82 (69)��

BC Intm Agg 2.27 (76) 1.97 (78) 1.21 (63) 4.12 (31) -1.02 (80)��

Median 2.54 2.39 1.30 3.57 -0.53

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Galliard Core 0.13 (46) -0.95 (62) 0.09 (31) 0.82 (28) 1.20 (17) 0.75 (68)

BC Intm Agg 0.09 (61) -1.05 (82) -0.07 (77) 0.72 (49) 0.92 (73) 0.68 (81)

IM U.S. Intermediate Duration (SA+CF) Median 0.12 -0.90 0.01 0.72 1.01 0.81

Performance Review


Galliard Core

NONE

Page 50







Over Performance Earliest Date Latest Date

0.0

1.0

2.0

3.0

4.0

5.0

Ga

llia

rd C

ore

(%

)

0.0 1.0 2.0 3.0 4.0 5.0

BC Intm Agg (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Galliard Core 20 13 (65%) 7 (35%) 0 (0%) 0 (0%)��

BC Intm Agg 20 0 (0%) 1 (5%) 11 (55%) 8 (40%)��

0.80

1.00

1.20

1.40

1.60

Re

turn

(%)

1.86 1.88 1.90 1.92 1.94 1.96



Galliard Core 1.48 1.93��

BC Intm Agg 0.95 1.95��

Median 1.37 1.89¾

1.60

1.80

2.00

2.20

2.40

Re

turn

(%)

1.86 1.88 1.90 1.92 1.94 1.96 1.98 2.00 2.02



Galliard Core 2.29 1.99��

BC Intm Agg 1.70 1.96��

Median 1.91 1.90¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Galliard Core 0.20 107.53 85.26 0.55 2.71 0.36 0.99 1.23

BC Intm Agg 0.00 100.00 100.00 0.00 N/A 0.08 1.00 1.32 90 Day U.S. Treasury Bill 1.96 13.16 -19.43 0.81 -0.08 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Galliard Core 0.24 108.54 85.36 0.57 2.46 0.89 1.01 1.07

BC Intm Agg 0.00 100.00 100.00 0.00 N/A 0.61 1.00 1.16 90 Day U.S. Treasury Bill 1.99 6.92 -13.16 0.51 -0.61 N/A -0.01 0.01

Performance Review


Galliard Core

NONE

Page 51

Peer Group Analysis - IM Global Fixed Income (MF)


-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

Re

turn


Templeton GB 1.02 (9) -0.18 (19) -1.95 (67) 5.43 (1) 3.87 (14) 0.89 (48) N/A��

CG W/G -1.62 (97) -2.55 (63) -1.54 (56) -2.11 (91) 1.68 (69) 0.27 (72) 0.20 (85)��

Median -0.39 -1.86 -1.19 0.00 2.36 0.78 1.39

-16.00

-12.00

-8.00

-4.00

0.00

4.00

8.00

12.00

16.00

20.00

Re

turn

2017 2016 2015 2014 2013

Templeton GB 2.79 (87) 6.78 (9) -3.91 (52) 1.97 (49) N/A��

CG W/G 7.49 (35) 1.60 (80) -3.57 (46) -0.48 (79) -4.00 (77)��

Median 6.81 2.92 -3.83 1.91 -2.52

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Templeton GB -2.54 (52) 1.39 (30) -1.77 (100) 1.23 (69) -1.26 (100) 4.69 (5)

CG W/G -3.35 (65) 2.50 (5) 1.04 (19) 1.81 (29) 2.89 (21) 1.55 (67)

IM Global Fixed Income (MF) Median -2.23 0.76 0.66 1.58 2.30 2.07

Performance Review


Templeton GB

NONE

Page 52









-4.0

-2.0

0.0

2.0

4.0

6.0

Te

mp

leto

n G

B (%

)

-4.0 -2.0 0.0 2.0 4.0 6.0

CG W/G (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Templeton GB 8 2 (25%) 3 (38%) 2 (25%) 1 (13%)��

CG W/G 20 1 (5%) 3 (15%) 5 (25%) 11 (55%)��

0.75

1.50

2.25

3.00

3.75

4.50

Re

turn

(%)

3.96 4.40 4.84 5.28 5.72 6.16 6.60 7.04 7.48



Templeton GB 3.87 6.80��

CG W/G 1.68 5.79��

Median 2.36 4.44¾

0.00

0.50

1.00

1.50

2.00

Re

turn

(%)

3.99 4.18 4.37 4.56 4.75 4.94 5.13 5.32 5.51



Templeton GB N/A N/A��

CG W/G 0.20 5.17��

Median 1.39 4.19¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Templeton GB 9.89 -4.41 -63.76 4.62 0.22 0.47 -0.27 4.00

CG W/G 0.00 100.00 100.00 0.00 N/A 0.18 1.00 4.07 90 Day U.S. Treasury Bill 5.80 4.01 -6.46 0.80 -0.18 N/A 0.00 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Templeton GB N/A N/A N/A N/A N/A N/A N/A N/A

CG W/G 0.00 100.00 100.00 0.00 N/A -0.03 1.00 3.81 90 Day U.S. Treasury Bill 5.16 3.10 -4.05 0.50 0.03 N/A 0.00 0.01

Performance Review


Templeton GB

NONE

Page 53

Peer Group Analysis - IM Flexible Portfolio (MF)


-7.00

-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

Re

turn


BlackRock Multi-Asset (BIICX) 2.22 (38) 0.94 (49) 2.63 (59) 5.19 (64) 5.92 (68) N/A N/A��

Total BlackRock Policy 2.48 (35) 1.95 (34) 4.93 (36) 6.85 (41) 7.39 (44) 5.23 (28) 5.80 (34)��

Median 1.74 0.85 3.38 6.26 6.98 4.01 5.04

-28.00

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

Re

turn

2017 2016 2015 2014 2013

BlackRock Multi-Asset (BIICX) 9.02 (74) 6.72 (45) N/A N/A N/A��

Total BlackRock Policy 12.62 (46) 5.23 (64) 0.08 (16) 5.53 (29) 11.56 (49)��

Median 12.03 6.40 -3.36 3.50 11.03

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

BlackRock Multi-Asset (BIICX) 0.10 (54) -1.35 (63) 1.67 (72) 1.70 (80) 2.43 (46) 2.94 (70)

Total BlackRock Policy 0.79 (39) -1.30 (61) 2.93 (48) 2.84 (49) 2.73 (36) 3.57 (56)

IM Flexible Portfolio (MF) Median 0.26 -1.05 2.75 2.80 2.31 3.82

Performance Review


BlackRock Multi-Asset (BIICX)

NONE

Page 54

Peer Group Analysis - IM Mixed-Asset Target Alloc Consv (MF)


-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00R

etu

rn


Westwood Inc Opp (WHGIX) 3.11 (1) 1.54 (21) 4.94 (6) 6.54 (7) 7.43 (6) N/A N/A��

Westwood Blended BM 1.88 (23) 2.53 (6) 4.85 (7) 4.48 (43) 6.47 (20) 5.74 (3) 6.43 (4)��

Median 1.47 0.65 2.50 4.19 5.22 3.44 4.07

-10.00

-7.00

-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

Re

turn

2017 2016 2015 2014 2013

Westwood Inc Opp (WHGIX) 10.96 (13) 6.66 (28) N/A N/A N/A��

Westwood Blended BM 8.13 (59) 5.37 (50) 1.61 (1) 12.88 (1) 6.15 (61)��

Median 8.55 5.35 -1.55 3.99 7.10

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Westwood Inc Opp (WHGIX) 0.69 (18) -2.20 (91) 3.35 (2) 1.36 (94) 2.07 (30) 3.77 (5)

Westwood Blended BM 2.99 (1) -2.28 (93) 2.27 (26) 1.53 (87) 1.72 (60) 2.38 (65)

IM Mixed-Asset Target Alloc Consv (MF) Median 0.22 -0.89 1.80 2.00 1.84 2.55

Performance Review


Westwood Inc Opp (WHGIX)

NONE

Page 55

Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF)


-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

20.00

Re

turn


Real Estate 2.46 (31) 7.91 (12) 10.48 (26) 10.17 (19) 10.55 (33) 11.38 (47) 11.77 (45)��

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 8.31 (63) 9.08 (56) 10.46 (58) 10.84 (61)��

Median 2.35 6.78 9.69 8.94 9.53 11.06 11.41

2.00

5.00

8.00

11.00

14.00

17.00

20.00

23.00

26.00

29.00

Re

turn

2017 2016 2015 2014 2013

Real Estate 8.48 (43) 10.39 (40) 14.98 (52) 12.81 (70) 14.85 (41)��

NCREIF Fund ODCE 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60)��

Median 8.08 9.63 15.23 13.59 14.47

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Real Estate 2.62 (32) 2.63 (24) 2.38 (28) 2.24 (34) 1.66 (74) 1.95 (45)

NCREIF Fund ODCE 2.13 (65) 2.17 (58) 2.15 (57) 1.89 (44) 1.71 (69) 1.83 (53)


Performance Review


Real Estate

NONE

Page 56








8.0

10.0

12.0

14.0

16.0

Re

al

E

sta

te (%

)

8.0 10.0 12.0 14.0 16.0

NCREIF Fund ODCE (%)

Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Real Estate 20 0 (0%) 14 (70%) 6 (30%) 0 (0%)��

NCREIF Fund ODCE 20 0 (0%) 0 (0%) 19 (95%) 1 (5%)��

8.48

9.01

9.54

10.07

10.60

11.13

Re

turn

(%)

0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00



Real Estate 10.55 1.65��

NCREIF Fund ODCE 9.08 0.83��

Median 9.53 1.29¾

10.56

10.89

11.22

11.55

11.88

12.21

Re

turn

(%)

1.26 1.35 1.44 1.53 1.62 1.71 1.80 1.89



Real Estate 11.77 1.61��


Median 11.41 1.78¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Real Estate 1.45 115.68 N/A 0.11 0.95 2.13 1.14 0.00

NCREIF Fund ODCE 0.00 100.00 N/A 0.00 N/A 2.18 1.00 0.00 90 Day U.S. Treasury Bill 3.66 9.10 N/A 0.74 -2.18 N/A 0.01 0.02

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Real Estate 1.30 108.25 N/A 0.32 0.66 2.22 1.05 0.00


Performance Review


Real Estate

NONE

Page 57



-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

20.00R

etu

rn


American Core Realty Fund 2.19 (59) 6.66 (68) 8.50 (70) 8.01 (75) 8.35 (82) 9.73 (79) 10.28 (72)��

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 8.31 (63) 9.08 (56) 10.46 (58) 10.84 (61)��

Median 2.35 6.78 9.69 8.94 9.53 11.06 11.41

2.00

5.00

8.00

11.00

14.00

17.00

20.00

23.00

26.00

29.00

Re

turn

2017 2016 2015 2014 2013

American Core Realty Fund 8.08 (50) 7.10 (97) 15.37 (43) 11.62 (87) 12.37 (71)��

NCREIF Fund ODCE 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60)��

Median 8.08 9.63 15.23 13.59 14.47

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

American Core Realty Fund 2.09 (70) 2.23 (47) 1.73 (89) 1.88 (44) 1.97 (40) 2.27 (30)

NCREIF Fund ODCE 2.13 (65) 2.17 (58) 2.15 (57) 1.89 (44) 1.71 (69) 1.83 (53)


Performance Review


American Core Realty Fund

NONE

Page 58








6.0

8.0

10.0

12.0

14.0

16.0

Am

eri

can

Co

re R

ea

lty

Fu

nd

(%)

6.0 8.0 10.0 12.0 14.0 16.0


Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

American Core Realty Fund 18 0 (0%) 0 (0%) 5 (28%) 13 (72%)��

NCREIF Fund ODCE 20 0 (0%) 0 (0%) 19 (95%) 1 (5%)��

7.80

8.19

8.58

8.97

9.36

9.75

Re

turn

(%)

0.72 0.81 0.90 0.99 1.08 1.17 1.26 1.35 1.44



American Core Realty Fund 8.35 0.99��


Median 9.53 1.29¾

9.88

10.26

10.64

11.02

11.40

11.78

Re

turn

(%)

1.26 1.35 1.44 1.53 1.62 1.71 1.80 1.89



American Core Realty Fund 10.28 1.64��


Median 11.41 1.78¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

American Core Realty Fund 0.90 92.25 N/A 0.11 -0.75 2.13 0.91 0.00


TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

American Core Realty Fund 1.09 95.04 N/A 0.00 -0.48 2.15 0.95 0.00


Performance Review


American Core Realty Fund

NONE

Page 59



-4.00

-1.00

2.00

5.00

8.00

11.00

14.00

17.00

20.00

Re

turn


Intercontinental 2.67 (15) 8.84 (1) 11.97 (1) 11.85 (1) 12.29 (17) 12.68 (21) 12.96 (22)��

NCREIF Fund ODCE 2.08 (63) 6.52 (70) 8.82 (67) 8.31 (63) 9.08 (56) 10.46 (58) 10.84 (61)��

Median 2.35 6.78 9.69 8.94 9.53 11.06 11.41

2.00

5.00

8.00

11.00

14.00

17.00

20.00

23.00

26.00

29.00

Re

turn

2017 2016 2015 2014 2013

Intercontinental 8.78 (38) 13.05 (21) 14.64 (61) 13.79 (44) 17.04 (17)��

NCREIF Fund ODCE 7.80 (57) 9.27 (55) 15.17 (51) 12.28 (78) 13.34 (60)��

Median 8.08 9.63 15.23 13.59 14.47

1 QtrEnding

Jun-2018

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

Intercontinental 3.01 (25) 2.92 (13) 2.88 (13) 2.51 (18) 1.42 (87) 1.70 (55)

NCREIF Fund ODCE 2.13 (65) 2.17 (58) 2.15 (57) 1.89 (44) 1.71 (69) 1.83 (53)


Performance Review


Intercontinental

NONE

Page 60








6.0

9.0

12.0

15.0

18.0

Inte

rco

nti

ne

nta

l

(%)

6.0 9.0 12.0 15.0 18.0


Over

Performance

Under

Performance

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Intercontinental 20 5 (25%) 14 (70%) 1 (5%) 0 (0%)��

NCREIF Fund ODCE 20 0 (0%) 0 (0%) 19 (95%) 1 (5%)��

8.00

10.00

12.00

14.00

Re

turn

(%)

0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60



Intercontinental 12.29 2.88��


Median 9.53 1.29¾

10.08

10.80

11.52

12.24

12.96

13.68

Re

turn

(%)

0.93 1.24 1.55 1.86 2.17 2.48 2.79 3.10 3.41



Intercontinental 12.96 2.85��


Median 11.41 1.78¾

TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Intercontinental 2.90 134.33 N/A 0.11 1.04 1.98 1.33 0.00


TrackingError

UpMarket

Capture

DownMarket

CaptureAlpha

InformationRatio

SharpeRatio

BetaDownside

Risk

Intercontinental 2.87 118.96 N/A 0.57 0.69 2.06 1.14 0.00


Performance Review


Intercontinental

NONE

Page 61

Total Fund Policy

Allocation Mandate Weight (%)

Jan-1999

Russell 3000 Index 45.00

MSCI EAFE Index 15.00

Bloomberg Barclays Intermed Aggregate Index 30.00

Blmbg. Barc. U.S. TIPS 1-10 Year 5.00

FTSE 3 Month T-Bill 5.00

Oct-2010


MSCI AC World ex USA 15.00


Bloomberg Barclays U.S. TIPS Index 5.00

NCREIF Fund Index-ODCE (EW) (Net) 10.00

Jan-2014





FTSE World Government Bond Index 5.00


Sep-2014






Jun-2015


MSCI AC World ex USA (Net) 15.00



FTSE World Government Bond Index 5.00

Blmbg. Barc. U.S. Aggregate Index 2.50

MSCI World (net) 2.50

Total Equity Policy


Jul-2007



Oct-2010



Total International Equity Policy


Jan-1999


Oct-2010


Total Domestic Fixed Income Policy


Jul-2007


Blmbg. Barc. U.S. TIPS 1-10 Year 15.00

Oct-2010



Dec-2015


Benchmark History

Investment Policy Benchmarks


Page 62

Retirement System for the General Employees of the Utility Board of Key WestCompliance Checklist

YES NO

The total plan gross return equaled or exceeded the total plan benchmark over the trailing three year period. xThe total plan gross return equaled or exceeded the total plan benchmark over the trailing five year period. xThe total plan gross return ranked within the top 40th percentile of its peer group over the trailing three year period. xThe total plan gross return ranked within the top 40th percentile of its peer group over the trailing five year period. xThe total plan gross return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing three year period. xThe total plan gross return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing five year period. x

YES NO

The total domestic equity returns meet or exceed the benchmark over the trailing three year period. xThe total domestic equity returns meet or exceed the benchmark over the trailing five year period. xThe total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. xThe total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. xThe total equity allocation was less than 75% of the total plan assets at market. xThe total foreign equity was less than 25% of the total plan assets at market. x

YES NO

The total domestic fixed income returns meet or exceed the benchmark over the trailing three year period. xThe total domestic fixed income returns meet or exceed the benchmark over the trailing five year period. xThe total domestic fixed income returns ranked within the top 40th percentile of its peer group over the trailing three year period. xThe total domestic fixed income returns ranked within the top 40th percentile of its peer group over the trailing five year period. xThe average weight of the fixed income portfolio was "A-" or better. xNo more than 20% of the fixed income portfolio was rated below BBB/Baa xThe duration of the fixed income portfolio was within 135% of the index. x

Total Fund Compliance

Domestic Equity Compliance

Domestic Fixed Income Compliance


Page 63

Retirement System for the General Employees of the Utility Board of Key WestCompliance Checklist

YES NO N/A YES NO N/A YES NO N/A YES NO N/A YES NO N/A

Vanguard Ttl Stock x x x x xBrandywine Dyn LCV x x x x xVanguard Eq Income x x x x xSawgrass x x x x xFred Alger x x x x xCambiar Equity x x x x xVanguard Ttl Intl Stock x x x x xWCM Foc Intl Growth x x x x xGalliard Fixed x x x x xTempleton Global x x x x xBlackRock Multi-Asset x x x x xWestwood Income Opp x x x x xAmerican Core Realty x x x x xIntercontinental RE x x x x x

* Mutual fund historical data is used for long-term ratings.


Manager outperformed the index over the trailing three

year period.

Manager outperformed the index over the trailing five year

period.

Manager ranked within the top 40th percentile over trailing three and five year periods.

Less than four consecutive quarters of underperformance

relative to the benchmark.

Three year and five year down market capture ratio less than

the index.Manager Compliance*

Page 64

Comparative Performance Trailing Returns

QTR 1 YR 3 YR 5 YR 10 YR InceptionInception

Date

Fred Alger Large Cap Growth Equity 12.08 (1) 36.08 (3) 21.04 (17) 16.60 (30) 14.40 (32) 12.04 (40) 01/01/1987



Sawgrass Large Cap Growth Equity 10.29 (10) 23.76 (57) 17.06 (75) 14.40 (70) 12.76 (69) 7.70 (70) 04/01/1998



Cambiar Large Cap Value 3.58 (89) 7.41 (91) 12.55 (83) 10.66 (72) 9.97 (81) 12.74 (N/A) 01/01/1980

Russell 1000 Value Index 5.70 (49) 9.45 (77) 13.55 (71) 10.72 (71) 9.79 (85) 11.88 (N/A)

IM U.S. Large Cap Value Equity (SA+CF) Median 5.64 11.72 14.64 11.57 10.93 N/A

Galliard Broad Market Core Composite 0.02 (84) -0.91 (63) 1.73 (55) 2.75 (34) 4.61 (49) 5.61 (27) 10/01/1995

Blmbg. Barc. U.S. Aggregate Index 0.02 (84) -1.22 (90) 1.31 (88) 2.16 (89) 3.77 (94) 5.02 (95)

IM U.S. Broad Market Core Fixed Income (SA+CF) Median 0.19 -0.74 1.82 2.58 4.58 5.41

Vanguard TSM Idx;Inst (VITSX) 7.09 (22) 17.62 (19) 17.07 (11) 13.44 (12) 12.09 (15) 7.79 (36) 08/01/1997

Russell 3000 Index 7.12 (19) 17.58 (19) 17.07 (11) 13.46 (11) 12.01 (17) 7.68 (40)

IM U.S. Multi-Cap Core Equity (MF) Median 5.83 14.51 14.53 11.56 10.46 7.34

WCM Focused Itl Gro;Inst (WCMIX) 3.03 (2) 11.23 (3) 14.05 (7) 9.32 (4) N/A 8.06 (9) 06/01/2011

MSCI EAFE IMI Growth 1.12 (25) 6.30 (17) 11.08 (22) 6.44 (17) 7.03 (22) 6.24 (18)

IM International Multi-Cap Growth Equity (MF) Median 0.24 2.64 9.11 4.87 5.60 4.47

Brandywine Dynamic Large Cap Value Composite 8.32 (8) 15.31 (20) 14.60 (52) 12.38 (31) 13.38 (5) 10.61 (2) 01/01/2007



Vanguard Equity Inc;Adm (VEIRX) 5.34 (52) 10.70 (54) 14.89 (24) 11.64 (15) 11.16 (6) 8.30 (22) 09/01/2001

S&P 500 Index 7.71 (10) 17.91 (4) 17.31 (4) 13.95 (1) 11.97 (1) 7.83 (38)

IM Equity Income (MF) Median 5.48 10.96 13.43 9.95 9.72 7.48

Vanguard Tot I Stk;Adm (VTIAX) 0.53 (61) 1.61 (45) 9.95 (20) 4.47 (37) N/A 5.27 (65) 12/01/2010

MSCI EAFE IMI 1.08 (40) 3.37 (11) 10.19 (15) 5.36 (17) 6.37 (15) 7.12 (12)

IM International Multi-Cap Core Equity (MF) Median 0.70 1.39 8.60 4.21 4.90 5.62

Intercontinental U.S. Real Estate 2.51 (23) 11.37 (12) 12.05 (23) 12.76 (23) 5.76 (45) 6.25 (12) 01/01/2008

NCREIF Property Index 1.67 (77) 7.16 (100) 7.75 (87) 9.57 (83) 6.42 (9) 6.15 (16)


Templeton Gl Bond;R6 (FBNRX) 1.02 (9) -1.95 (42) 3.87 (18) 1.98 (24) N/A 1.59 (24) 06/01/2013

FTSE Non-U.S. World Government Bond -2.19 (96) -1.57 (34) 2.39 (71) -0.23 (75) 1.99 (82) 0.45 (52)

IM International Fixed Income (MF) Median -0.63 -2.20 3.00 0.96 4.09 0.55


Manager's Composite Historical Performance



Page 65


Manager's Composite Historical Performance


QTR 1 YR 3 YR 5 YR 10 YR InceptionInception

Date

American Core Realty Fund, LP N/A N/A N/A N/A N/A N/A 01/01/2004

NCREIF Fund Index-Open End Diversified Core (EW) 2.08 (63) 8.82 (67) 9.08 (56) 10.84 (61) 5.35 (74) 8.02 (N/A)

IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 9.69 9.53 11.41 5.69 N/A

Westwood Income Opp;Inst (WHGIX) 3.11 (1) 4.94 (6) 7.43 (6) 5.91 (6) 7.83 (2) 6.85 (2) 01/01/2006

Dow Jones U.S. Conservative Index 1.04 (77) 2.12 (63) 3.43 (94) 3.63 (69) 5.51 (50) 5.00 (28)

IM Mixed-Asset Target Alloc Consv (MF) Median 1.47 2.50 5.22 4.07 5.49 4.39

BlackRock:Mlt-A Inc;I (BIICX) 2.20 (39) 2.62 (59) 5.91 (69) 4.84 (54) 6.72 (43) 5.49 (33) 05/01/2008

60 MSCI World/40 FTSE World 2.37 (37) 6.39 (25) 9.17 (19) 6.06 (29) 6.62 (45) 4.81 (50)

IM Flexible Portfolio (MF) Median 1.74 3.38 6.98 5.04 6.31 4.75


Page 66

Report Statistics Definitions and Descriptions

Active Return - Arithmetic difference between the manager’s performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's

non-systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the

product’s performance. Distributed to Paid In (DPI) - The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple

shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative

quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager’s performance and the risk-free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the

Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) - Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R-Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has

historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A

higher value demonstrates better historical risk-adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Total Value to Paid In (TVPI) - The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund

to date. It is a good measure of performance before the end of a fund’s life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free

rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance.

Page 67

Disclosures

AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client’s custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results.

Page 68

Salem Trust Service Report Summary

D E E R F I E L D B E A C H T A M P A 1715 N WESTSHORE BOULEVARD, SUITE 750 TAMPA, FL 33607 TEL (877) 382-5268 FAX (813) 301-1295

www.sa l emtrust . com

SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE-OWNED COMPANY.

An Authentic Difference An Authentic DifferenceSM

For the period ending September 30, 2018 Published Date: October 31, 2018

Our Definition of Reliability:

An Authentic DifferenceSM is a promise of transparency. Each quarter, we publish a report of operation stability and performance for the benefit of every client and industry partner. This Service Report Summary tracks 5 primary categories essential to core custody services. This summary is condensed from a comprehensive quarterly performance scorecard containing 17 discrete tasks, also available by request. Based on data used by our independent auditors and government regulators, we objectively compare how we have performed in relation to our goals. Our objective is to deliver better service to clients and their service partners by analyzing how the average performance can be improved.

From the Website of the City of Vero Beach: a COVB photo submitted by resident Marlen Hurter

Salem Trust Service Report Summary page 2 Published: October 31, 2018

92% 93% 94% 95% 96% 97% 98% 99% 100%

Oct '17

Nov '17

Dec '17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

Aug'18

Sep'18

Statement ProductionActual MonthlyPerformance

Statement ProductionCategory Goal

92% 93% 94% 95% 96% 97% 98% 99% 100%

Oct '17

Nov '17

Dec '17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

Aug'18

Sep'18

Trade Settlements ActualMonthly Performance

Trade Settlements CategoryGoal

92% 93% 94% 95% 96% 97% 98% 99% 100%

Oct '17

Nov '17

Dec '17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

Aug'18

Sep'18

Income Posting ActualMonthly Performance

Income PostingCategory Goal

Client Statement Production:

Tracks when statements are released to our clients. Trade Settlements:

Measures how many securities are posted by their settlement dates.

Income Posting:

Measures all types of income, including interest, dividends, capital gains and pay downs.


92% 93% 94% 95% 96% 97% 98% 99% 100%

Oct '17

Nov '17

Dec '17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

Aug'18

Sep'18Cash ProcessingActual MonthlyPerformance

Cash ProcessingAverage CategoryGoal

92% 93% 94% 95% 96% 97% 98% 99% 100%

Oct '17

Nov '17

Dec '17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

Aug'18

Sep'18

Corporate Actions ActualMonthly Performance

Corporate Actions CategoryGoal

Cash Processing:

Tracks when wires, ACHs and checks are produced or transmitted. Corporate Actions:

Measures the completion of stock splits, company reorganizations and stock calls.

Client Service Totals as of September 30, 2018:

Client relationships

Client assets under administration: $8.2 billion Client relationships: 212

Client service ratio

Full-time Salem Trust client services employees: 8 Average number of client relationships per Salem Trust relationship manager: 53

Benefit payments

Monthly recurring payments made in past 12 months: 87,227 Lump sum payments made in past 12 months: 1,697

Securities movement

Number of security positions held: 28,0971 (excluding money market funds) Number of securities trades processed in past 12 months: 156,589


Discrete Tasks per Service Category:

Listed below are the individual tasks, with their goals, for each category tracked in the comprehensive quarterly performance scorecard. The graphs in this Salem Trust Service Report Summary average all discrete tasks within a category. Client statement production performance base:

Standard statements released for print within 5 business days: 99% Employee benefit statements release for print within 10 business days: 95%

Trade settlements performance base:

Money market trades posted on settlement date: 99% Mutual fund trades posted on settlement date: 95% DTC and Fed trades posted on settlement date: 95%

Income posting category performance base:

Money market dividends posted within 1 business day of payable date: 99% Mutual fund dividends and capital gains distributions posted within 3 business days of payable date: 95% Book-entry DTC dividends posted within 1 business day of payable date: 95% Book-entry Fed interest posted within 1 business day of payable date: 85% MBS, CMO & asset-backed principal paydowns posted within 2 business days of payable date: 90% MBS, CMO & asset-backed interest posted within 2 business days of payable date: 90%

Cash processing category performance base:

Wire transfers transmitted on same business day: 99% ACH transfers transmitted on same business day: 99% Checks produced on same business day: 99%

Corporate actions category performance base:

Stock splits & stock dividends posted within 1 business day of ex-date: 95% Exchanges, spinoffs, mergers & all other reorgs posted within 1 business day after receipt: 95% Maturities & full calls posted within 1 business day of maturity or call date: 95%

Investment products and services are not bank deposits or obligations of, or guaranteed or endorsed or otherwise supported by, Salem Trust Company, its parent company or any affiliate, are not federally insured or guaranteed by the FDIC or any other agency of the United States, and are subject to investment risks, including possible loss of the principal amount invested. Investments are: IN NO EVENT WILL SALEM TRUST COMPANY OR ITS AFFILIATES BE LIABLE FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION DIRECT OR INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES ARISING IN CONNECTION WITH THIS PUBLICATION OR USE THEREOF BY ANY PARTY OR IN CONNECTION WITH ANY ERROR OR OMISSION.

August 29, 2018 Pension Board c/o Mr. Jack Wetzler Assistant General Manager and

Chief Financial Officer Utility Board of the City of Key West Post Office Box 6100 Key West, Florida 33041-6100 Re: Rehired Employees Dear Jack:

As requested, we have reviewed the Plan Document with respect to rehired employees under the Retirement System for General Employees of the Utility Board of the City of Key West (Retirement System). As stated by the Plan Attorney, we believe the Plan Document is does not spell out how rehired employees should be treated. We understand the Board of Trustees has requested potential options for treatment of rehired employees under the Retirement System. Option 1 – Upon rehire, treat the rehired employee as a new hire for all Retirement System purposes (prior service does not count towards eligibility, vesting, credited service – including 30-year cap, etc.). The rehired employee would earn a benefit calculated under the career average compensation / 2% formula for employees hired on or after June 1, 2010. We understand this option is how rehired employees who were not vested prior to rehire have been handled. Under this option, an employee who was vested prior to rehire would potentially earn two benefits under the System – one for the vested benefit prior to rehire (frozen) and one for the benefit earned for service following rehire, if any. Option 1 would not increase the Retirement System’s liabilities for any benefit earned prior to rehire. Option 2 – Upon rehire, treat the employee as a new hire with a benefit calculated under the career average compensation / 2% formula for employees hired on or after June 1, 2010; however, prior service would count for eligibility and vesting purposes. If the

Mr. Jack Wetzler August 29, 2018 Page Two

employee was vested during the prior period of service the prior service would count towards meeting the maximum 30-year cap on credited service. If the employee was vested during the prior period of service, the employee would earn two benefits under the Retirement System as for Option 1. Option 2 would not increase the Retirement System’s liabilities for any benefit earned prior to rehire. However, Option 2 would increase funding liabilities for any potential benefit projected for service following rehire. Option 3 – Upon rehire, treat the employee as an employee based on their original date of hire with a break in service for the period of time they were not employed. Prior service would count for all purposes (eligibility, vesting, credited service – including 30 year cap, etc.). Under Option 3 the rehired employee would earn one benefit under the Retirement System. Under Option 3, the rehired employee’s benefit would be based upon the benefit structure based upon the original hire date. Option 3 would increase the Retirement System’s funding liabilities for both any benefit earned prior to rehire and for or any potential benefit projected for service following rehire. We believe other options or a combination of the above options could be constructed. We look forward to further discussion regarding this matter. If you should have any question concerning the above, please do not hesitate to contact us. Sincerest regards,

Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary cc: Mr. Harry L. Bethel, Chairman Ronald J. Cohen, Esq.

Retirement System for the General Employees of the Utility Board of the City of Key West, Florida

Trustee Positions Expiring March 31, 2019

Retirees

Finance Information

Services Fleets

Facilities Purchasing/Wareho

use

Engineering Control Center

Executive

Human Resources &

Communications

T&D

Customer Service Meters

Generation

Harry Bethel Sr [1] Alvaro Rodriguez Fred Culpepper Erica Zarate Dan Sabino Sylvia Adams David Price Eddie Garcia

[1] Chair

Position will not be filled

Retirement System of the General Employees

of The Utility Board of the City of Key West, Florida

Agenda Item Summary Sheet Meeting Date: November 20, 2018

Agenda Item #: 4a

AGENDA ITEM WORDING: Approve Pension Meeting Minutes: Regular Meeting – August 21, 2018 REQUESTED ACTION: Motion to Approve Pension Meeting Minutes for the Regular Meeting – August 21, 2018 ATTACHMENT: Pension Meeting Minutes: Regular Meeting – August 21, 2018

R E T I R E M E N T S Y S T E M F O R T H E G E N E R A L E M P L O Y E E S O F T H E U T I L I T Y B O A R D O F

T H E C I T Y O F K E Y W E S T, F L O R I D A

Pension Meeting Minutes Pension Board of Trustees Meeting 1:30 p.m. – Tuesday, August 21, 2018

1. Call to Order and Roll Call

Present: Larry Thompson, Brittani Harden, Jesse Perloff, Sylvia Adams, Dan Sabino, Gricel Owen, Fred Culpepper, James Robinson, Jack Wetzler, Lynne Tejeda. Absent: Joey Diaz, Catherine Nix, Chairman Bethel, David Price, Eddie Garcia, Alvaro Rodriguez.

2. Set Agenda

3. Informational Items for Discussion: a. Unaudited Financial Statement as of June 30, 2018 – Jack Wetzler b. Investment Performance Review – June 30, 2018 – Tim Nash, AndCo

Consulting c. Salem Trust Report

i. Service Report Summary for the Quarter Ended June 30, 2018 ii. 40% Reduction of Class Action Processing Fee iii. Information Technology Security iv. Certificate of Liability Insurance v. Electronic Communication Acknowledgement

d. Attorney Report – Ron Cohen, Plan Attorney i. Break in service

e. Actuarial Study of Enhancement of Pre-retirement Survivor's Benefit, Larry Wilson, Plan Actuary & Ron Cohen, Plan Attorney

f. Next Trustee Training – November 20, 2018 at 10 a.m. Presented by: Ron Cohen, Plan Attorney & Tim Nash, AndCo Consulting

4. Consent Agenda* a. Approve Minutes – Regular Meeting – May 15, 2018 b. Approve Disbursement Report c. Approve Pension Benefits

i. Robert Burchett ii. Susan Ham iii. Otniel Mendez iv. Chuck Weitzel – term vested

A motion was made by Gricel Owen to Approve Consent Agenda; Larry Thompson seconded the motion. Motion was passed unanimously.

5. Action Items a. Approve Experience Study – Larry Wilson, GRS

A motion was made by Lynne Tejeda to Approve Experience Study; Fred Culpepper seconded the motion. Motion was passed unanimously.

6. Other Business (that may legally come before the board)

7. Next Meeting Date: November 20, 2018

8. Public Comments

9. Adjournment A motion was made by Vice-Chair Brittani Harden to adjourn the Pension Board of Trustees meeting of August 21, 2018, at 3:32 p.m.

*Item is considered to be routine and enacted by one motion with no separate discussion, unless requested by a Pension Board Member or Citizen, in which event the item will be considered independently. Approved: __________________________ ___________________________ Brittani Harden, Vice Chair Jack Wetzler, Secretary/Treasurer




Agenda Item #: 4b

AGENDA ITEM WORDING: Approve Pension Meeting Minutes: Pension Board of Trustees Training – August 21, 2018 REQUESTED ACTION: Motion to Approve Pension Meeting Minutes for the Pension Board of Trustees Training– August 21, 2018 ATTACHMENT: Pension Meeting Minutes: Workshop Meeting Minutes – August 21, 2018

MINUTES FROM THE PENSION TRAINING/ WORKSHOP FOR THE PENSION BOARD OF TRUSTEES, HELD AT 10:00 A.M. ON TUESDAY, AUGUST 21, 2018, AT THE KEYS ENERGY SERVICES BOARD ROOM LOCATED AT 1001 JAMES STREET, KEY WEST, FLORIDA

The above referenced workshop of the Pension Board of Trustees, convened at 10:12 A.M., on the above date and location was called to order by Vice Chair Brittani Harden.

Staff Present Brittani Harden, Pension Vice Chair Gricel Owen, Trustee Jessie Perloff, Trustee Jimmy Robinson, Trustee Sylvia Adams, Retiree/Trustee

Other Present Larry Wilson, Pension Actuary Karen Russo, Salem Trust SVP & Regional Manager

Ms. Harden provided a power point presentation and gave an Overview of the Basic Study Guide for the Florida Public Pension Trustee Association (FPPTA), which included:

Responsibilities as a Trustee Statutory Duties

Fiduciary Duties Trustee Service Providers & Role of Service Providers Defined Benefit vs. Defined Contribution Ethics Financial Disclosure Conflicts of Interest

Gifts & Unauthorized Compensation Voting Conflicts Staying Informed

Ms. Karen Russo provided a power point presentation and reviewed the following:

Provided brief history of Salem Trust Company Discussed the Custodian Role and Responsibilities Interactions with Key Service Providers Interaction with the Trustee of the Retirement System Interaction with the Plan Administrator

Interaction with the Investment Consultant Interaction with the Investment Manager Additional Custodian Services Invoice Payment Features & Benefits Foreign Tax Reclamation

2

Mr. Wilson provided a power point presentation and reviewed the following:

Provided Background about the Retirement System

Retirement System risk Characteristics Retirement System Provisions Vesting Normal/ Early Retirement Date Credited Service

Final Average Compensation (FAC) Career Average Compensation (CAC) Normal Retirement Benefit Calculation Normal/Optional Forms of Payment Example of Actuarial Adjustment

Additional Benefits Actuarial Reports Actuarial Assumptions Measurement of Assets Selection/Changes in Assumptions

(A copy of the power point presentations is available upon request)

ADJOURNMENT

Ms. Harden adjourned the Pension Training Workshop August 21, 2018, at 12:21 P.M. APPROVE: _____________________________ Brittani Harden, Vice Chair ATTEST: ________________________________ Jack Wetzler, Secretary/Treasurer /ed




Agenda Item #: 4c

AGENDA ITEM WORDING: Approve Disbursement Report REQUESTED ACTION: Motion to Approve Disbursement Report. ATTACHMENT: Disbursement Report

Check Check Date Pay to the Order of Service Debit38594 09/14/2018 Legg Mason Services Company LLC Money Manager 7,030.31$ 38595 09/11/2018 Galliard Capital Management Money Manager 6,361.83 38596 09/11/2018 United Way Retiree Donation 50.00 38597 09/14/2018 Cook Communication Board Meeting Notice 119.20 38598 VOID38599 10/09/2018 Fred Alger Management Operating Inc Money Manager Fees 20,231.50 38600 10/09/2018 Rice Pugath Robinson Storfer & Cohen Attorney Fees 3,492.02 38601 10/09/2018 AndCo Investment Management Fees 11,875.00 38602 10/09/2018 United Way Retiree Donation 50.00 38603 10/09/2018 Rice Pugath Robinson Storfer & Cohen Attorney Fees 812.87 38604 10/09/2018 Gabriel, Roeder, Smith & Company Actuary 20,779.00 38605 10/09/2018 Gabriel, Roeder, Smith & Company Actuary 9,171.00 38606 10/09/2018 Sawgrass Asset Management Money Manager 18,834.92 38607 VOID38608 10/29/2018 Cambiar Investments Money Manager 12,878.83 38609 10/29/2018 Galliard Capital Management Money Manager 6,372.94 38610 10/29/2018 Fred Alger Management Operating Inc Money Manager Fees 18,734.76 38611 10/29/2018 Salem Trust Custodial Fees 6,538.46 38612 11/02/2018 United Way Retiree Donation 50.00

Wire 08/30/2018 Retirement Benefits September 2018 452,885.67 Wire 08/30/2018 Retirement Benefit Federal Taxes September 2018 54,107.72 Wire 08/30/2018 Retirement Benefit Garnishment September 2018 1,721.24 Wire 09/04/2018 Monthly Insurance Reimbursement September 2018 19,845.52 Wire 09/28/2018 Retirement Benefits October 2018 451,894.66 Wire 09/28/2018 Retirement Benefit Federal Taxes October 2018 54,107.72 Wire 09/28/2018 Retirement Benefit Garnishment October 2018 1,721.24 Wire 10/01/2018 Monthly Insurance Reimbursement October 2018 18,735.53 Wire 10/31/2018 Retirement Benefits Novenber 2018 453,296.21 Wire 10/31/2018 Retirement Benefit Federal Taxes Novenber 2018 54,401.54 Wire 10/31/2018 Retirement Benefit Garnishment Novenber 2018 1,721.24 Wire 11/02/2018 Monthly Insurance Reimbursement Novenber 2018 18,831.63

Total Disbursement $1,726,652.56

Disbursements Report




Agenda Item #: 4d

AGENDA ITEM WORDING: Approve Retirement Benefits, Effective November 1, 2018 for Patricia Pazo and December 1, 2018 for Charles Bradford REQUESTED ACTION: Motion to Approve Retirement Benefits, Effective November 1, 2018 for Patricia Pazo and December 1, 2018 for Charles Bradford DISCUSSION: Patricia Pazo resigned effective October 4, 2018 and Charles Bradford’s term as board member ended on November 19, 2018. Patricia Pazo began receiving retirement benefits on November 1, 2018 and Charles Bradford will begin receiving retirement benefits on December 1, 2018. ATTACHMENTS: Patricia Pazo’s letter of resignation




Agenda Item #:5a

AGENDA ITEM WORDING: Approve Results of the Experience Study for the Five Years Ended December 31, 2017 REQUESTED ACTION: Motion to Approve Results of the Experience Study for the Five Years Ended December 31, 2017 DISCUSSION: At the August 21, 2018 pension meeting, trustees approved the actuary to perform an experience study for the five years ended December 31, 2018. The study resulted in the following recommended changes in actuarial assumptions:

Update the future salary increase assumption to reflect lower than expected observed salary increase experience and to better reflect future anticipated salary increase experience – cost is minus 1.3%

Update assumed rates of future withdrawal to reflect generally lower than

expected observed withdrawal experience and to better reflect future anticipated withdrawal experience - cost is plus 0.2%

Update assumed rates of future retirement to reflect lower than expected

observed retirement experience and to better reflect future anticipated retirement experience - cost is minus 0.7%

Update investment return assumption to 7.25% (includes price inflation of

2.60%) to better reflect anticipated future investment experience - cost is plus 3.6%

Combined effect of updated salary increase assumptions, rates of future

withdrawal, rates of future retirement and investment return assumption of 7.25% (includes price inflation of 2.60%)- total cost is plus 1.8%

October 17, 2018 Board of Trustees c/o Mr. Jack Wetzler Assistant General Manager and

Chief Financial Officer Utility Board of the City of Key West 1001 James Street Key West, Florida 33041-6100 Re: Experience Study Dear Jack: As requested, please find enclosed our Experience Study for the Five Years Ended December 31, 2017 for the Retirement System for General Employees of the Utility Board of the City of Key West. We appreciate the opportunity to have performed this important work assignment on behalf

of the Retirement Board. We look forward to presenting the highlights of our Experience Study at the upcoming Retirement Board Meeting on November 20th. If you should have any question concerning the above, please do not hesitate to contact us.

Sincerest regards,

Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Mr. Harry L. Bethel, Chairman

Retirement System for General Employees of the Utility Board of the City of Key West Experience Study for the Five Years Ended December 31, 2017

October 17, 2018

Retirement System for General Employees of

the Utility Board of the City of Key West

October 17, 2018 Board of Trustees c/o Mr. Jack Wetzler Assistant General Manager and Chief Financial Officer Utility Board of the City of Key West 1001 James Street Key West, Florida 33041-6100 Re: Experience Study Dear Trustees: Gabriel, Roeder, Smith & Company is pleased to provide the results of an Experience Study for the Retirement System for General Employees of the Utility Board of the City of Key West (System). The purpose of our Report is to assist in assumption selection for future actuarial valuations by comparing actual to expected experience over a recent period of time and review economic assumptions based on current economic environment and forecasts. This Experience Study covers the five-year period - January 1, 2013 through December 31, 2017. Based upon the results, certain changes in actuarial assumptions for actuarial valuation purposes are recommended. The Table of Contents, which immediately follows, sets out the material contained in this Report. This Experience Study is based upon assumptions regarding future events, which may or may not materialize and based upon System provisions as outlined in our most recent January 1, 2018 Actuarial Valuation Report. The member census data and financial data incorporated includes information as of the January 1, 2018 Actuarial Valuation Report. Should you have reason to believe the assumptions used are unreasonable, System provisions are incorrectly described, important and relevant System provisions are not described or conditions have changed since the date of the calculations, you should contact the undersigned prior to relying on information in this Experience Study. As you may be aware, in the event more than one assumption change is being considered, it is important to note separate valuations cannot generally be added together to produce the total. The total can be considerably greater or less than the sum of the parts due to interaction of various System provisions, actuarial assumptions and actuarial methods with each other.

Board of Trustees October 17, 2018 Page Two

This Experience Study is intended to describe the estimated future financial effects of the proposed assumption changes on the System. Future actuarial measurements may differ significantly from the current measurements presented in our Report due to such factors as the following: System experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in System provisions or applicable law. Due to the limited scope of the actuary’s assignment, the actuary did not perform an analysis of the potential range of such future measurements. Our Report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this Report in a manner other than the intended purpose may produce significantly different results. This Experience Study has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this Report is accurate and fairly presents the actuarial position of the Fund as of the date of this Experience Study. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Our Report may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of both the System and Utility Board. The undersigned are Members of the American Academy of Actuaries and meet the qualification standards of the American Academy of Actuaries to render the actuarial opinions contained in this Report. We are available to respond to any questions with regards to matters covered in this Report. Respectfully submitted, GABRIEL, ROEDER, SMITH & COMPANY

Lawrence F. Wilson, A.S.A., E.A., M.A.A.A., F.C.A Senior Consultant and Actuary

Shelly L. Jones, A.S.A., M.A.A.A., F.C.A Senior Analyst and Actuary


the Utility Board of the City of Key West

EXPERIENCE STUDY

TABLE OF CONTENTS

Item Page No.

Summary of Findings 3

Experience Investigation Results

Methodology 4

Basic Results and Conclusions

Rates of Salary Increase 5

Rates of Withdrawal 6

Rates of Retirement 7

Rates of Mortality 8

Investment Return and Inflation 9 Appendices

Table I: Comparison of Actual and Expected Annual Salaries 16

Table II: Comparison of Actual and Expected Terminations 17

Table III: Comparison of Actual and Expected Retirements 18

Purpose of an Actuarial Valuation 19

Role of the Actuarial Assumptions 19


the Utility Board of the City of Key West 3

EXPERIENCE STUDY

SUMMARY OF FINDINGS

The five-year period (January 1, 2013 to December 31, 2017) covered by this Experience Study provided sufficient data to form a basis for recommending updates in the following demographic and financial assumptions used in the Actuarial Valuation of the Retirement System.

Recommended changes in actuarial assumptions resulting from this Experience Study including the cost as a percentage of projected covered annual payroll ($9,210,384) are summarized below. Please note: the amortization period for the change in actuarial accrued liability resulting from modeled assumption changes is 30 years.)

Update the future salary increase assumption to reflect lower than expected observed salary increase experience and to better reflect future anticipated salary increase experience.

Cost

- 1.3%

Update assumed rates of future withdrawal to reflect generally lower than expected observed withdrawal experience and to better reflect future anticipated withdrawal experience.

Cost

0.2%

Update assumed rates of future retirement to reflect lower than expected observed retirement experience and to better reflect future anticipated retirement experience.

Cost

- 0.7%

Update investment return assumption to 7.25% (includes price inflation of 2.60%) to better reflect anticipated future investment experience.

Cost

+ 3.6%

Combined effect of updated salary increase assumptions, rates of future withdrawal, rates of future retirement and investment return assumption of 7.25% (includes price inflation of 2.60%):

Cost

+ 1.8%



EXPERIENCE STUDY RESULTS The methodology, basic results and conclusions of the five-year experience study of the actuarial assumptions are described below. Methodology The expected salaries at the end of each year were obtained by use of the salary scale assumption (4.50% - 10.00%) used in the January 1, 2018 Actuarial Valuation. The resulting expected salaries were then compared with the actual salaries reported. The number of members exposed to risk during each period was tabulated (exposure) and the expected incidence of withdrawal (vested and non-vested) and retirement were obtained by use of the withdrawal and retirement rates employed in the most recent Actuarial Valuation. The actual number of separations and retirees were tabulated and compared with those expected.



EXPERIENCE STUDY RESULTS

Rates of Salary Increase

Observed rates of pay increases were lower than those expected based upon the current pay increase assumptions. Compensation during the first two years and any years with partial pay were not included in the analysis. We propose the rates be re-grouped as few exposures under age 25 did not provide statistically significant results under age 25. Additionally, we propose to split the age 45 - 54 group into two age groups from age 45 - 49 and from age 50 - 54 as those groups were statistically significant and showed differing experience within each age group. The proposed salary increase assumptions as follows:

Current Salary Increase Schedule

Assumed Promotion Total Assumed Promotion Total

Age Wage & Current Age Wage & Proposed

Inflation Seniority Rates Inflation Seniority Rates

Under 25 3.50% 6.50% 10.00% Under 35 3.25% 3.75% 7.00%

25 - 34 3.50% 4.00% 7.50% 35 - 44 3.25% 1.75% 5.00%

35 - 44 3.50% 2.50% 6.00% 45 - 49 3.25% 1.75% 5.00%

45 - 54 3.50% 1.50% 5.00% 50 - 54 3.25% 0.75% 4.00%

55 & Over 3.50% 1.00% 4.50% 55 & Over 3.25% 0.75% 4.00%

SALARY INCREASES

Proposed Salary Increase Schedule




Rates of Withdrawal The actual number of withdrawals was slightly lower than the total number of expected withdrawals under the assumed rates of withdrawal used in the latest Actuarial Valuation. We recommend updating the rates as follows:

Service Unisex Rates Service Unisex Rates

0 10.0% 0 9.0%

1 9.0% 1 8.1%

2 8.0% 2 7.2%

3 6.0% 3 5.4%

4 4.0% 4 3.6%

5+ 3.5% 5+ 3.3%

WITHDRAWAL RATES

Expected Current Expected Proposed




Rates of Retirement

The actual number of retirements observed was lower than the total number of expected retirees under the assumed rates of retirement used in the latest Actuarial Valuation. Retirements at younger ages were slightly higher than expected while retirements at later ages were slightly lower than expected. We propose retirement rates as follows:

Age Rates

Under 55 5.0%

55 - 58 15.0%

59 - 60 30.0%

61 - 62 10.0%

63 - 69 15.0%

70 100.0%

* Under the current assumption, employees who

attain age 50 with 30 years of service after each

valuation date are assumed to retire no later

than age 50 with 30 years of service. Employees

who have reached age 70 or age 50 with 30 years

of service as of each valuation date are assumed

to remain employed for an additional year.

CURRENT RETIREMENT RATES*

Age Rates

Under 55 6.5%

55 - 58 15.0%

59 - 60 30.0%

61 - 62 5.0%

63 - 69 5.0%

70 100.0%

Age Rates

Under 50 50.0%

50 + 100.0%

PROPOSED RETIREMENT RATES

Less than 30 Years of Service

30 Years of Service



EXPERIENCE INVESTIGATION RESULTS

Rates of Mortality We recommend no changes to the assumed mortality rates for healthy or disabled lives, which are currently based upon the assumptions used by the Florida Retirement System (FRS) as required under F.S., Chapter 2015-157.




Investment Return and Inflation

Economic assumptions include long-term rates of investment return (net after investment expenses), inflation and wage inflation (the across-the-board portion of salary increases). Unlike demographic activities, economic activities do not lend themselves to analysis solely on the basis of internal historical patterns because both salary increases and investment return are more affected by external forces; namely inflation (both wage and price), general productivity changes and the local economic environment which defy accurate long-term prediction. Estimates of economic activities are generally selected on the basis of the expectations in an inflation-free environment and then both are increased by some provision for long-term inflation.

If wage inflation and/or productivity increases are higher than expected, it will probably result in both actual rates of salary increases and investment return which exceed the assumed rates. Salaries increasing faster than expected produce unexpected liabilities. Investment return exceeding the assumed rates (whether due to manager performance, change in the mix of assets, or general market conditions) results in unanticipated assets. To the extent that inflation, productivity, and other factors have about the same effect on both sides of the balance sheet, these additional assets and liabilities can offset one another over the long-term. Wage Inflation. The average rate of increase in National Average Earnings over the 60 years ending December 31, 2017 is higher than the current 3.50% assumption (see schedule on page 11). The difference between the long-term averages and more recent experience is related to the excess rates of price and wage inflation during the 1970s, which most observers do not expect to see repeated. When the decade of high inflation is factored out, long term national averages are just above 4.0%. More recently, during the last five years annual wage inflation has averaged 3.0%. We recommend reducing the current long term wage inflation assumption to 3.25%. Inflation. The average rate of increase in Consumer Price Index over the 60 years ending December 31, 2017 is higher than the current 2.75% assumption. The difference between the long-term averages and more recent experience is related to the excess rates of price and wage inflation during the 1970s, which most observers do not expect to see continue. We recommend an inflation assumption of 2.60%. Investment Return and Spread. The current asset portfolio for the retirement program is a diversified mix of equity and fixed income investments. Real market returns (the spread between recognized net investment return and inflation) for balanced portfolios have averaged 5.2% over the last 60 years (see schedule on page 11). Only hindsight will tell whether a particular combination of economic assumptions is optimal. If future economic patterns are as favorable as in the 1980’s and 1990’s, this spread would prove to be conservative. If, on the other hand, the investment markets produce lower real returns, contribution rate increases will become likely at some future date.





The current real return assumption for the actuarial valuation is 4.75% (7.50% nominal rate less 2.75% inflation). This combination of assumptions could be considered to be somewhat on the optimistic side of an acceptable range. We have modeled a 4.65% real return assumption with reduced real and inflation assumptions (7.25% nominal rate less 2.60% inflation), net of investment expenses. An example of the relationship between economic assumptions based on a 4.65% spread (7.25% investment return and 2.60% inflation) is illustrated below:

Assumed Rate

= 7.25%

3.25%

Price Inflation = 2.60%

Real Wage Growth - 0.65%

Implied Net Real Return = 4.65%

Investment Return Wage Inflation





National

Calendar Cash Price Average

Year U.S. Corp. Equivalents Stocks Inflation Earnings Total Spread:Period Treasury (S&P AA) (T-Bills) (S&P 500) (CPI) (NAE) Return (I) I - CPI - e

1950-1959 (0.1)% 1.0 % 1.9 % 19.4 % 2.2 % 4.5 % 12.2 % 9.5 %

1960-1969 1.4 % 1.7 % 3.9 % 7.8 % 2.5 % 4.3 % 5.7 % 2.7 %

1970-1979 5.5 % 6.2 % 6.3 % 5.9 % 7.4 % 6.9 % 6.2 % (1.7)%

1980-1989 12.6 % 13.0 % 8.9 % 17.5 % 5.1 % 5.8 % 15.7 % 10.1 %

1990-1999 8.8 % 8.4 % 4.9 % 18.2 % 2.9 % 4.2 % 14.4 % 11.0 %

2000-2009 7.7 % 7.6 % 2.8 % (0.9)% 2.5 % 3.3 % 3.2 % 0.2 %

2000 21.5 % 12.9 % 5.9 % (9.1)% 3.4 % 5.5 % 1.1 % (2.8)%

2001 3.7 % 10.7 % 3.8 % (11.9)% 1.6 % 2.4 % (4.6)% (6.7)%

2002 17.8 % 16.3 % 1.7 % (22.1)% 2.4 % 1.0 % (7.2)% (10.1)%

2003 1.5 % 5.3 % 1.0 % 28.7 % 1.9 % 2.4 % 18.4 % 16.0 %

2004 8.5 % 8.7 % 1.2 % 10.9 % 3.3 % 4.7 % 9.6 % 5.8 %

2005 7.8 % 5.9 % 3.0 % 4.9 % 3.4 % 3.7 % 5.5 % 1.6 %

2006 1.2 % 3.2 % 4.8 % 15.8 % 2.5 % 4.6 % 10.4 % 7.4 %

2007 9.9 % 2.6 % 4.7 % 5.5 % 4.1 % 4.5 % 5.9 % 1.3 %

2008 25.9 % 8.8 % 1.6 % (37.0)% 0.1 % 2.3 % (15.6)% (16.2)%

2009 (14.9)% 3.0 % 0.1 % 26.5 % 2.7 % (1.5)% 13.4 % 10.2 %

2010 10.1 % 12.4 % 0.1 % 15.1 % 1.5 % 2.4 % 12.9 % 10.9 %

2011 28.2 % 18.0 % 0.0 % 2.1 % 3.0 % 3.1 % 9.6 % 6.1 %

2012 3.3 % 10.7 % 0.1 % 16.0 % 1.7 % 3.1 % 11.9 % 9.7 %

2013 (11.4)% (7.1)% 0.0 % 32.4 % 1.5 % 1.3 % 16.1 % 14.1 %

2014 23.9 % 17.3 % 0.0 % 13.7 % 0.8 % 3.6 % 15.6 % 14.3 %

2015 (1.3)% (4.8)% 0.5 % 1.4 % 0.7 % 3.5 % (0.1)% (1.3)%

2016 1.2 % 10.8 % 1.1 % 12.0 % 2.1 % 1.1 % 9.1 % 6.5 %

2017 8.6 % 11.7 % (0.4)% 21.8 % 2.1 % 5.5 % 16.6 % 14.0 %

Last 5 Years 3.6 % 5.1 % 0.2 % 15.8 % 1.4 % 3.0 % 11.3 % 9.3 %

Last 60 Years 6.8 % 7.1 % 4.5 % 10.6 % 3.7 % 4.5 % 9.4 % 5.2 %

Stocks (S&P 500) 60 % Bonds, Long (U.S. Treasury) 20 %

Bonds, Long (Corp., S&P AA) 15 %

Cash Equivalents (T-Bills) 5 %

Total 100 %

Fund Expenses (e) 0.50 %

Historical Patterns of Investment Return, Inflation & Pay Increases (1950 - 2017)

Gross Market Returns

Bonds, Long Sample Balanced Fund*

* Sample Balanced Fund





INVESTMENT RETURN EXPERIENCE

This Table sets forth the results of an analysis made of investment yields on the assets held under the Retirement System for General Employees of the Utility Board of the City of Key West. The basic sources for this analysis were the Statements provided by the System.

Smoothed

Calendar Market Actuarial Assumed Rate

Year Value Yield Value Yield of Return

2017 15.8% 8.6% 7.5%

2016 6.6% 7.9% 7.5%

2015 (0.7%) 7.7% 7.5%

2014 5.1% 10.5% 7.5%

2013 21.0% 12.8% 8.0%

2012 13.5% 3.6% 8.0%

2011 1.2% 2.6% 8.0%

2010 11.5% 3.8% 8.0%

2009 18.4% 10.8% 8.0%

2008 (21.9%) (7.0%) 8.0%

Last 3 Years 7.0% 8.1% 7.5%

Last 5 Years 9.3% 9.5% 7.6%

Last 10 Years 6.3% 6.0% 7.8%

Investment Return





SHORT TERM INVESTMENT RETURN FORECASTS

These tables set forth the results of an analysis made on the assets held under the System. The target allocations were obtained from the most recent Investment Policy Statement. The short term forward-looking investment returns of twelve investment consultants were used to project the rate of return of the System based on its target allocation. The table below shows the expected nominal return from each investment consultant based on the System’s target allocation and short-run (mainly 10 year) assumptions.

1 6.07% 2.20% 3.87% 2.60% 6.47% 13.57%

2 6.62% 2.50% 4.12% 2.60% 6.72% 13.14%

3 6.34% 2.21% 4.13% 2.60% 6.73% 13.68%

4 6.43% 2.26% 4.17% 2.60% 6.77% 11.28%

5 6.53% 2.25% 4.28% 2.60% 6.88% 12.84%

6 6.79% 2.50% 4.29% 2.60% 6.89% 13.24%

7 6.48% 2.00% 4.48% 2.60% 7.08% 12.41%

8 6.58% 2.00% 4.58% 2.60% 7.18% 11.41%

9 6.93% 2.31% 4.62% 2.60% 7.22% 13.00%

10 6.93% 1.95% 4.98% 2.60% 7.58% 13.01%

11 7.27% 2.26% 5.01% 2.60% 7.61% 14.86%

12 7.84% 2.00% 5.84% 2.60% 8.44% 11.84%

Average 6.73% 2.20% 4.53% 2.60% 7.13% 12.86%

Standard

Deviation

of Expected

Return

(1-Year)

Investment

Consultant

Investment

Consultant

Expected

Nominal

Return

Investment

Consultant

Inflation

Assumption

Expected

Real Return

Plan Inflation

Assumption

Expected

Nominal

Return





SHORT TERM INVESTMENT RETURN FORECASTS

The table below shows select percentiles of the distribution of average geometric returns over 10- years and the probability of exceeding the current and proposed investment return assumption.

Probability of

exceeding

Probability of

exceeding

Probability of

exceeding

Probability of

exceeding

40th 50th 60th 7.50% 7.25% 7.13% 7.00%

1 4.54% 5.61% 6.69% 32.94% 35.06% 36.10% 37.24%

2 4.89% 5.92% 6.97% 35.17% 37.42% 38.52% 39.72%

3 4.79% 5.86% 6.95% 35.19% 37.36% 38.41% 39.56%

4 5.29% 6.18% 7.08% 35.52% 38.15% 39.44% 40.85%

5 5.10% 6.11% 7.14% 36.59% 38.93% 40.07% 41.31%

6 5.04% 6.08% 7.14% 36.68% 38.95% 40.05% 41.26%

7 5.39% 6.37% 7.36% 38.62% 41.08% 42.28% 43.58%

8 5.68% 6.58% 7.49% 39.87% 42.57% 43.88% 45.31%

9 5.42% 6.44% 7.48% 39.78% 42.15% 43.30% 44.56%

10 5.77% 6.80% 7.84% 43.20% 45.61% 46.78% 48.05%

11 5.43% 6.59% 7.77% 42.28% 44.39% 45.41% 46.52%

12 6.87% 7.80% 8.75% 53.26% 55.94% 57.22% 58.60%

Average 5.35% 6.36% 7.39% 39.09% 41.47% 42.62% 43.88%

Investment

Consultant

Distribution of 10-Year Average

Geometric Net Nominal Return





LONG TERM INVESTMENT RETURN FORECASTS

Three of the twelve investment consultants included in our analysis provided long-term expectations (20 to 30 years). Each of these three investment consultants provided different long term expectations than their short term expectations. However, two of those three indicated that return expectations after the 10th year were set based on historical return experience, as opposed to a market-based or forward-looking methodology predominately used in the development of the 10-year expectations. The third investment consultant did not indicate any difference in methodology for developing long term expectations. The long-term investment returns of the three investment consultants were used to project the rate of return of the System based on its target allocation. The table below shows the expected nominal return from each investment consultant based on the System’s target allocation and long-run (20 to 30 year) assumptions.

1 7.29% 2.31% 4.98% 2.60% 7.58% 13.32%

2 7.32% 2.20% 5.12% 2.60% 7.72% 13.68%

3 8.34% 2.75% 5.59% 2.60% 8.19% 13.24%

Average 7.65% 2.42% 5.23% 2.60% 7.83% 13.42%

Standard

Deviation

of Expected

Return

(1-Year)

Investment

Consultant

Investment

Consultant

Expected

Nominal

Return

Investment

Consultant

Inflation

Assumption

Expected

Real Return

Plan Inflation

Assumption

Expected

Nominal

Return

The table below shows select percentiles of the distribution of average geometric returns over 20- years and the probability of exceeding the current and proposed investment return assumption based on the long run assumptions.

Probability of

exceeding

Probability of

exceeding

Probability of

exceeding

Probability of

exceeding

40th 50th 60th 7.83% 7.50% 7.25% 7.00%

1 6.02% 6.76% 7.51% 35.94% 40.17% 43.47% 46.81%

2 6.10% 6.86% 7.63% 37.47% 41.64% 44.88% 48.15%

3 6.65% 7.39% 8.13% 44.04% 48.50% 51.91% 55.31%

Average 6.26% 7.00% 7.76% 39.15% 43.44% 46.75% 50.09%

Investment

Consultant

Distribution of 20-Year Average

Geometric Net Nominal Return



APPENDIX TABLE I

COMPARISON OF ACTUAL AND EXPECTED

ANNUAL MEMBER SALARIES

Age Prior Year Expected % Incr Actual % Incr Proposed Expected

Under 35 $6,804,462 $7,318,696 7.56% $7,277,871 6.96% 7.00% $7,280,774

35 - 44 8,032,147 8,514,076 6.00% 8,304,416 3.39% 5.00% 8,433,754

45 - 49 9,542,344 10,019,461 5.00% 9,922,781 3.99% 5.00% 10,019,461

50 - 54 6,588,914 6,918,360 5.00% 6,790,170 3.05% 4.00% 6,852,471

55 & Over 7,655,948 8,000,466 4.50% 7,954,154 3.90% 4.00% 7,962,186

Total 38,623,815 40,771,059 5.56% 40,249,392 4.21% 4.98% 40,548,646

ANNUAL SALARY INCREASES

By Age



APPENDIX TABLE II

COMPARISON OF ACTUAL AND EXPECTED

TERMINATIONS

Years of

Service Exposure

Current

Assumed

Rates

Expected

Withdrawals

Actual

Withdrawals

Actual

Rates

Proposed

Withdrawal

Rates

Expected

Withdrawals (with

Proposed Rates)

0 17 10.0% 1.7 0 0.0% 9.0% 1.5

1 29 9.0% 2.6 3 10.3% 8.1% 2.3

2 17 8.0% 1.4 0 0.0% 7.2% 1.2

3 17 6.0% 1.0 1 5.9% 5.4% 0.9

4 19 4.0% 0.8 2 10.5% 3.6% 0.7

5+ 286 3.5% 10.0 9 3.1% 3.3% 9.4

Total 385 4.5% 17.5 15 3.9% 4.2% 16.1

WITHDRAWAL EXPERIENCE



APPENDIX TABLE III

COMPARISON OF ACTUAL AND EXPECTED RETIREMENTS

Current Proposed Expected

Assumed Actual Actual Retirement Retirements

Age Exposure Rates Ret.'s Rates Rates (New Rates)

Under 55 121 5.0% 6.1 10 8.3% 6.5% 7.9

55 - 58 57 15.0% 8.6 8 14.0% 15.0% 8.6

59 - 60 12 30.0% 3.6 4 33.3% 30.0% 3.6

61 - 62 8 10.0% 0.8 0 0.0% 5.0% 0.4

63 - 69 34 15.0% 5.1 2 5.9% 5.0% 1.7

70 + 5 100.0% 5.0 2 40.0% 100.0% 5.0

Subtotal 237 12.3% 29.1 26 11.0% 11.4% 27.1

50 and Under 2 5.0% 0.1 2 100.0% 50.0% 1.0

50 + 18 100.0% 18.0 9 50.0% 100.0% 18.0

Subtotal 20 100.0% 18.1 11 55.0% 95.0% 19.0

Total 257 18.4% 47.2 37 14.4% 17.9% 46.1

Expected

Ret.'s

RETIREMENT EXPERIENCE

Less than 30 Years of Service

30 Years of Service



APPENDIX

Purpose of the Actuarial Valuation

In a defined benefit pension Fund, an employer makes a promise to its employees of a lifetime pension. The amount of the monthly pension is determined by a benefit formula which is often based upon a multiplier percentage and the number of years of service and the average final earnings of the employee. The employer must design and follow a systematic Fund for advance-funding this obligation. That is accomplished by establishing a pension fund and performing annual actuarial valuations to measure the liabilities associated with the obligation and to calculate how much the employer must contribute to the pension fund in order to make good on its promise. The calculations in the Actuarial Valuation are performed each year to re-measure the liabilities. The stakeholders need to know how the Fund is doing in its goal of systematically financing the promised benefits. So it is important to make the actuarial calculations in accordance with the professional actuarial standards of practice and the accounting standards.

Role of Actuarial Assumptions

The nature of the pension promise and its systematic funding require long term projections of the employee workforce (using demographic assumptions) and long term projections of the salaries and investment returns (using economic assumptions). The entire actuarial valuation process depends on the selection and use of reasonable actuarial assumptions as to future demographics and future economics. There are many different actuarial assumptions employed in an actuarial valuation. The primary actuarial assumptions include:

1. Rates of Salary Increases 2. Rates of Termination of Employment 3. Rates of Mortality 4. Rates of Retirement 5. Rates of Investment Return

The actuary and System management must be comfortable with the actuarial assumptions. The assumptions must be reasonable. Without a level of confidence in the reasonableness of the actuarial assumptions, the stakeholders and users of the valuation results cannot have confidence in the results. However, there is no way to have confidence in the actuarial assumptions unless an actuarial experience study is performed to assess the reasonableness of the current assumptions or to change them to be more in line with past experience and with future expectations. For this reason the Utility Board has requested that we undertake an actuarial experience study to recommend changes to the actuarial assumptions used in the annual Actuarial Valuation.


Of The Utility Board of the City of Key West, Florida


Agenda Item #: 5b

AGENDA ITEM WORDING: Approve Replacing Sawgrass Asset Manager with T. Rowe Price Large Core Growth as a Money Manager DISCUSSION: __ Tim Nash, Investment Consultant with AndCo will discuss terminating the services of Sawgrass Asset Manager as a money manager, will review money manager evaluations and recommend T. Rowe Large Growth as the replacement money manager. REQUESTED ACTION: Motion to Approve Replacing Sawgrass Asset Manager with T. Rowe Price Large Core Growth as a Money Manager Attachments:

Recommendation by AndCo

Retirement System for the Employees' of the Utility Board of Key West, FL.

U.S. Large Cap Growth Equity Manager Analysis June 30, 2018

Retirement System for the General Employees’ of the Utility Board of Key West, FLU.S. Large Cap Growth Executive Summary

I. U.S. Large Capitalization Strategy Overview

This manager evaluation report is intended to review and evaluate U.S.large capitalization growth domestic equity options to potentially replaceSawgrass Asset Management, the current large capitalization growthseparate account manager. The Sawgrass Asset Management largegrowth strategy falls outside the guidelines of the Plan’s investmentpolicy statement requirements.

U.S. large cap growth typically comprises U.S. based companies with amarket capitalization over $5 billion and have higher price to book, priceto earnings, and higher 3 year forecasted growth rates within theRussell 1000 Index. The Russell 1000 Growth Index is the benchmarkfor the growth strategy evaluation. The Russell 1000 Growth Index hasapproximately 600 companies with the largest dominating the index.The weighted average market cap of the index typically exceeds $125billion with the median market cap is less than $10 billion. The index isdominated by technology, healthcare, and consumer discretionary andconsumer staples. The primary role of a U.S. large cap growth strategyis to provide diversified exposure to the U.S. stock market with a styletilt towards companies with higher future growth prospects. Stocks inthe growth space typically offer higher growth and lower dividend rates.

The AndCo Research Group due diligence process continuallyevaluates specific investment managers within each asset class. Theresearch group specifically prepared the list of 5 potential growthinvestment managers in this report. Manager tenure, risk and returnmetrics and fees are some key drivers for inclusion in the review in thereview. The list of managers is created in conjunction with the overallportfolio objectives of the Retirement System for the GeneralEmployees of the Utility Board of Key West, FL.

The five growth managers for consideration are Boston Advisors, MarVista Partners, Massachusetts Financial Services, T. Rowe Price andSawgrass (Incumbent). Both separate accounts and mutual funds wereincluded in the evaluation. Investment process, performance, riskmetrics, peer evaluation, strategy overview and fee information isdetailed in the presentation.

Period Ended: September 30, 2018

II. Current Portfolio and Fees

The Plan currently has two separate account growth managers,Sawgrass Asset Management and Alger Capital. Alger has performedwell and should be retained. The fee schedule is 65 bps on all assetsfor Alger. Alger (growth) has a current market value of $12,448,119 asof 9/30/2018. Sawgrass (growth) has a current market value of$11,590,723 as of 9/30/2018.The annual fees are $75,339 orapproximately 65 basis points.

III. Proposed Portfolio and Fee Recommendation

The overall pension plan has continued to increase in value an benefitsfrom diversification among growth managers. AndCo recommendsconsideration of the liquidation of Sawgrass Asset Management $11.5million separate account and allocating the proceeds to thereplacement manager as follows:

Manager Name: Manager Vehicle Annual Fee(New Replacement ManagerT. Rowe Price Growth Fund $11.5 million mutual fund 57 bps(Current Incumbent)Alger $12.4 separate account 65 bpsBlended Fee for Both Managers 61 bps

The Plan dual growth manager structure proposed providesdiversification within the growth style offering potential improved returnswith mitigation of volatility and a modest reduction in fees. Alger is ahigh beta growth manager utilizing a bottom-down fundamentalinvestment approach. T. Rowe Price is core growth approach withapproximately 125 names in the investment portfolio.

Both Alger (Incumbent) and T. Rowe Price (proposed) outperform theindex for a full market cycle (last 10 years) and rank in the top 2nd andtop 5th percentile in the growth universe. The combination of bothmanagers in the portfolio, historically, outperform the benchmark for the5 and 10 year periods and result in lower fees for the Plan.

.

1

Introduction

As of 6/30/2018

Purpose for this Manager Evaluation Report

Investment Options for this Manager Evaluation Report

Strategy Name

Boston Large Cap Growth

Mar Vista Strategic Growth

*MFS® Growth R6 (MFEKX)

*T. Rowe Price Instl Large Cap Core Gr (TPLGX)

Focused Growth Equity

Vehicle Management Fee Investment Minimum

SA 0.52% (negotiated) $5,000,000

SA

MF

MF

0.60% None

0.57% $1,000,000

0.50% (negotiated) $1,000,000

0.50% $5,000,000SA

Mar Vista Investment Partners

Firm Name

Boston Advisors

Massachusetts Financial Services

T. Rowe Price Associates, Inc.

Sawgrass Asset Management

This search is intended to evaluate large cap growth equity options.

*MFS Growth Equity separate account composite will be used as a proxy for MFS® Growth R6 (MFEKX) due to its longer performance/data history. Noted funds being used as proxies are strictly forillustrative purposes. Please see additional important disclosure information at the end of this presentation.

T. Rowe Price US Large-Cap Core Grwth Eq separate account composite will be used as a proxy for T. Rowe Price Instl Large Cap Core Gr (TPLGX) due to its longer performance/data history. Notedfunds being used as proxies are strictly for illustrative purposes. Please see additional important disclosure information at the end of this presentation.

2

As of 6/30/2018

Asset Class Overview

Benchmark and Peer Group

This US Large Cap Growth search report will use the following benchmark and peer group:

Index – Russell 1000 Growth: Consists of the stocks in the Russell 1000 Index with higher than average forecasted growth rates and higher price-to-book and price-to-earnings ratios.

Morningstar Category - Large Growth: Large-growth portfolios invest primarily in big US companies that are projected to grow faster than other large-cap stocks. Stocks in the top 70% of the capitalization of the US equity market are defined as large cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries.

The primary role of a US Large Cap Growth strategy is to provide diversified exposure to the US stock market with a style tilt toward those names with higher future growth prospects. Active managers in the space typically evaluate a stock’s growth rate relative to its valuation. As a group, growth stocks have lower dividend yields than value stocks. The group can often demonstrate higher volatility when broader economic expectations deteriorate. Within the portfolio, a Large Cap Growth strategy is usually paired with a Large Cap Value strategy to provide additional diversification across different economic environments.

US Large Cap Growth is typically defined as US-based companies with a market capitalization over $5 billion that have higher price-to-book, price-to-earnings, and forecasted growth rates. The primary benchmark for strategies in this space is the Russell 1000 Growth Index. The index contains those stocks with higher than average price-to-book and price- to-earnings ratios and higher 3-yr forecasted growth rates within the Russell 1000 on Russell’s annual reconstitution day, typically calculated at the end of May. The Technology sector dominates the index, accounting for approximately 30% of the weight by market cap. The Consumer Discretionary, Healthcare, Consumer Staples and Industrials sectors also all have meaningful weights. The index contains approximately 600 individual names, but the largest companies by market cap dominate the index. The weighted average market cap of the index typically exceeds $125 Billion, while the median market cap is closer to $10 Billion. The five largest names account for over 15% of the index.

Role within a Portfolio

Definition and Characteristics

3

Investment Option Comparison

4

Firm and Investment Option Information

Firm Information

Year Founded

US Headquarters Location

Number of Major Global Offices

Year Began Managing Ext. Funds

Firm AUM ($ M)

Ownership Type

Largest Owner (Name)

Employee Ownership (%)

Qualify as Emerging Manager?

1/1/1982

Boston, MA

1

1/1/1998

4,699

Independent

Birdsong Capital (employees)

60

No

1/1/2007

Los Angeles, CA

1

1/1/2002

3,743

Independent

Silas Myers

100

Yes

1/1/1924

Boston, MA

9

1/1/1924

440,610

Subsidiary

Sun Life Financial

6

No

1/1/1937

Baltimore, MD

6

1/1/1937

810,800

Publicly Traded

N/A

17

No

1/1/1998

Jacksonville Beach, FL

1

1/1/1998

3,890

Independent

Dean McQuiddy

100

No

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Strategy Information

Inception Date

Open/Closed

Primary Benchmark

Secondary Benchmark

Peer Universe

Outperformance Estimate (%)

Tracking Error Estimate (%)

Strategy AUM ($ M)

Strategy AUM as % Firm Assets

Estimated Capacity ($ M)

Investment Approach - Primary

Investment Approach - Secondary

12/31/2006

Open

Russell 1000 Growth

None

US Large Cap Growth

1-2

3-5

1,979

42

10,000

Bottom-up

Hybrid

12/31/2003

Open

Russell 1000 Growth

S&P 500

US Large Cap Growth

2

4-6

2,828

76

25,000

Bottom-up

Fundamental

8/1/1995

Open

Russell 1000 Growth

None

US Large Cap Growth

1

2-8

20,310

5

Not Provided

Bottom-up

Fundamental

6/30/1993

Open

Russell 1000 Growth

S&P 500

US Large Cap Growth

1.5-2

3-5

62,297

1

Not Provided

Bottom-up

Fundamental

2/28/2007

Open

Russell 1000 Growth

S&P 500

US Large Cap Growth

2

3-6

217

6

20,000

Bottom-up

Fundamental

The source of data and figures provided is generally the respective managers. Certain data represents AndCo's view and could differ from the manager's interpretation. The most current AUM of each strategy may therefore differ from what is currently stated. 5

Firm and Investment Option Information

Team Information

Decision Making Structure

Number of Decision Makers

Names of Decision Makers

Date Began Managing Strategy

Date Began with Firm

Number of Products Managed by Team

Number of Investment Analysts

Investment Analyst Team Structure

Team

5

5 Person PM Team

2007-2015

1997-2015

8

4

Combination

Team

2

S. Myers, B. Massey

2003

2007

2

2

Sector/Industry Specialists

Team

3

E. Fischman, M. Sabel, P. Gordon

2004, 2014, 2017

2000, 2009, 2004

1

71


PM-Led

1

L. Puglia

35520

33070

3

154


Team

3

M. LaPrade, M. Davis, A. Brooks

2007, 2007, 2012

1998, 2001, 2012

2

1

Generalists

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Portfolio Construction Information

Broad Style Category

Style Bias

Sector Constraint Type

Sector Constraints (%)

Typical Sector/s Overweight

Typical Sector/s Underweight

Typical Number of Holdings

Average Full Position Size (%)

Maximum Position Size (%)

Annual Typical Asset Turnover (%)

Annual Typical Name Turnover (%)

Maximum Cash Allocation (%)

Maximum Foreign Exposure (%)

Growth

GARP

None

None

None

None

75-100

+1% relative to index

+5% relative to index

70-100

Not Provided

5

0

Growth

GARP

Benchmark Relative

+/-15

None

None

30-50

3-4

5

35-50

15-25

15

None

Growth

Core Growth

None

None

None

None

90-110

1.25

5 or 1.5x

30-50

20-30

5

None

Growth

Core Growth

Benchmark Relative

0.5-3.0x

None

None

100-140

+/-4

5

30-45

Not Provided

None

20

Growth

GARP

Benchmark Relative

+/-10

None

None

15-20

4-5

10

55

30

5

0

The source of data and figures provided is generally the respective managers. Certain data represents AndCo's view and could differ from the manager's interpretation. The most current AUM of each strategy may therefore differ from what is currently stated. 6

Current Portfolio Comparison

As of 6/30/2018

GICS SECTORS %

Energy %

Materials %

Industrials %

Consumer Discretionary %

Consumer Staples %

Healthcare %

Financials %

Information Technology %

Telecom Services %

Utilities %

Real Estate %

1.40

3.69

12.79

18.99

6.76

13.23

5.91

36.02

1.22

0.00

0.00

4.80

4.74

19.97

8.27

6.90

7.40

16.10

27.19

0.00

0.00

4.63

0.79

3.22

6.94

15.95

5.62

12.56

5.36

48.06

0.00

0.00

1.51

0.00

0.60

9.46

22.39

0.36

15.50

9.52

41.31

0.00

0.42

0.44

0.00

7.96

11.45

29.16

9.78

15.65

0.00

26.00

0.00

0.00

0.00

1.01

1.80

11.87

17.93

5.72

13.37

4.44

41.55

0.15

0.00

2.16

MARKET CAPITALIZATION

Market Cap Giant %

Market Cap Large %

Market Cap Mid %

Market Cap Small %

Market Cap Micro %

49.01

27.37

15.50

6.61

0.00

39.02

32.50

22.64

0.00

0.00

53.48

37.51

3.64

0.00

0.00

60.23

38.60

0.91

0.00

0.00

26.00

37.67

30.24

0.00

0.00

54.43

29.69

13.09

0.13

0.00

CHARACTERISTICS

Average Market Cap (mil)

P/E Ratio (TTM)

P/B Ratio (TTM)

LT Earn Growth

Dividend Yield

ROE % (TTM)

84,568.59

23.71

4.91

12.45

1.11

28.07

60,468.66

29.00

4.07

13.59

1.01

22.08

107,911.73

33.83

6.04

15.26

0.79

23.14

129,075.26

32.53

5.74

16.20

0.79

21.91

38,098.62

24.59

5.96

11.07

1.26

30.29

101,952.77

27.53

7.02

14.26

1.22

28.86

COMPOSITION

# of Holdings

% Asset in Top 10 Holdings

Asset Alloc Cash %

Asset Alloc Equity %

Asset Alloc Bond %

Asset Alloc Other %

84

39.13

0.91

99.09

0.00

0.00

37

41.21

1.58

98.42

0.00

0.00

84

37.42

2.11

97.89

0.00

0.00

125

42.68

2.47

99.74

0.31

0.00

20

69.96

6.08

93.92

0.00

0.00

542

33.83

0.00

100.00

0.00

0.00

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Russell1000

GrowthTR USD

7

Historical Portfolio Characteristics Comparison

As of 6/30/2018

Historical Cash Allocation

2010 2012 2014 2016 20180.0

2.0

4.0

6.0

8.0

10.0

12.0

Ass

et A

lloc

Cas

h %

(Lo

ng)

Historical Portfolio Turnover

2011 2013 2015 20170.0

20.0

40.0

60.0

80.0

100.0

Tur

nove

r R

atio

%

Historical Number of Holdings

2010 2012 2014 2016 20180.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

# of

Hol

ding

s

Historical Percentage of Assets in Top 10 Holdings

2010 2012 2014 2016 20187.5

15.0

22.5

30.0

37.5

45.0

52.5

60.0

67.5

75.0

% A

sset

in T

op 1

0 H

old

ings

Boston Advisors Large Cap Growth Mar Vista Strategic Growth MFS® Growth Equity

T. Rowe Price US Large-Cap Core Grwth Eq Sawgrass Focused Growth Equity

8

Historical Portfolio Characteristics Comparison

As of 6/30/2018

Historical Earnings Growth

2010 2012 2014 2016 20188.0

10.0

12.0

14.0

16.0

18.0

LT E

arn

Gro

wth

Historical Dividend Yield

2010 2012 2014 2016 20180.5

1.0

1.5

2.0

2.5

3.0

Div

Yld

Historical P/E Ratio

2010 2012 2014 2016 201810.0

15.0

20.0

25.0

30.0

35.0

P/E

Rat

io

Historical P/B Ratio

2010 2012 2014 2016 20181.5

2.3

3.0

3.8

4.5

5.3

6.0

6.8

7.5

P/B

Rat

io


T. Rowe Price US Large-Cap Core Grwth Eq Sawgrass Focused Growth Equity Russell 1000 Growth TR USD

9

Current and Historical Portfolio Region Exposure

Historical Non-US Portfolio Exposure

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Equ

ity C

ount

ry N

on-U

S %

(Lo

ng)

Current Portfolio Region Allocation

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Russell1000

GrowthTR USD

Portfolio Date

Equity Country United States %

Equity Region North America %

Equity Region Latin America %

Equity Region United Kingdom %

Equity Region Europe dev %

Equity Region Europe emrg %

Equity Region Japan %

Equity Region Australasia %

Equity Region Asia dev %

Equity Region Asia emrg %

Equity Region Africa/Middle East %

Equity Region Developed %

Equity Region Emerging %

12/31/2017 6/30/2018 3/31/2018 3/31/2018 6/30/2018 6/30/2018

97.62

98.25

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.37

0.38

98.63

1.37

96.90

96.90

0.00

0.00

3.10

0.00

0.00

0.00

0.00

0.00

0.00

100.00

0.00

97.90

98.76

0.00

0.00

0.27

0.00

0.00

0.00

0.26

0.72

0.00

99.28

0.72

92.85

93.04

0.00

0.00

0.25

0.00

0.00

0.00

0.00

6.72

0.00

93.28

6.72

100.00

100.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

100.00

0.00

99.43

99.43

0.00

0.04

0.00

0.00

0.00

0.00

0.00

0.53

0.00

99.47

0.53



10

Current and Historical Portfolio Style Comparison

Historical Value - Growth Score

2010 2012 2014 2016 2018200.0

250.0

300.0

350.0

400.0

Val

ue-G

row

th S

core

(L

ong)

Historical Average Market Capitalization

2010 2012 2014 2016 20180.0

20,000.0

40,000.0

60,000.0

80,000.0

100,000.0

120,000.0

140,000.0

Ave

rage

Mar

ket C

ap (

mil)

Style Allocation

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Russell1000

GrowthTR USD

Portfolio Date

Equity Style Large Value %

Equity Style Large Core %

Equity Style Large Growth %

Equity Style Mid Value %

Equity Style Mid Core %

Equity Style Mid Growth %

Equity Style Small Value %

Equity Style Small Core %

Equity Style Small Growth %

12/31/2017 6/30/2018 3/31/2018 3/31/2018 6/30/2018 6/30/2018

11.26

17.75

47.38

3.24

8.69

3.57

0.49

3.23

2.89

12.15

17.32

46.31

0.00

3.39

19.25

0.00

0.00

0.00

1.38

17.16

74.75

0.07

1.21

2.34

0.00

0.00

0.00

4.15

16.59

74.30

0.39

0.33

0.19

0.00

0.00

0.00

7.54

19.00

37.14

0.00

25.56

4.68

0.00

0.00

0.00

7.37

26.39

53.01

1.09

3.89

7.91

0.01

0.05

0.08



11

Current and Historical Holdings Based Style Analysis

As of 6/30/2018

Current Portfolio Holdings-Style Map

Mic

roS

mal

lM

idLa

rge

Gia

nt

Deep-Val Core-Val Core Core-Grth High-Grth

Historical Holdings-Based Style Trail

Time Period: 7/31/2008 to 6/30/2018

Mic

roS

mal

lM

idLa

rge

Gia

nt

Deep-Val Core-Val Core Core-Grth High-Grth



12

Quantitative Review

*MFS Growth Equity separate account composite will be used as a proxy for MFS® Growth R6 (MFEKX) due to its longer performance/data history. Noted funds being used as proxies are strictly forillustrative purposes. Please see additional important disclosure information at the end of this presentation.

T. Rowe Price US Large-Cap Core Grwth Eq separate account composite will be used as a proxy for T. Rowe Price Instl Large Cap Core Gr (TPLGX) due to its longer performance/data history. Noted funds being used as proxies are strictly for illustrative purposes. Please see additional important disclosure information at the end of this presentation.

13

Trailing Performance

As of 6/30/2018

Peer Group (5-95%): Separate Accounts/CITs - U.S. - Large Growth

1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 9 Years 10 Years6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

30.0

Ret

urn



1 Year Rank 2 Years Rank 3 Years Rank 4 Years Rank 5 Years Rank 6 Years Rank 7 Years Rank 8 Years Rank 9 Years Rank 10 Years Rank

Boston Advisors Large Cap Growth


MFS® Growth Equity

T. Rowe Price US Large-Cap Core Grwth Eq

Sawgrass Focused Growth Equity

Russell 1000 Growth TR USD

23.17

15.46

26.33

28.66

15.65

22.51

20.75

15.74

23.47

28.65

13.19

21.46

12.89

12.15

16.75

17.92

9.52

14.98

12.47

11.33

15.19

16.85

9.97

13.85

16.09

14.71

17.49

19.54

12.84

16.36

16.46

15.54

18.01

19.47

13.31

16.47

14.74

14.25

16.02

17.72

12.85

14.88

17.58

15.38

18.07

19.91

14.90

17.22

17.23

15.16

17.69

19.11

15.13

16.82

12.50

11.87

12.35

13.82

10.18

11.83

29 46 48 47 36 34 29 21 21 14

76 84 59 63 56 53 37 65 66 29

19 21 8 13 17 13 11 15 14 19

11 5 4 3 4 4 2 2 3 5

75 94 85 78 81 87 67 72 66 66

32 37 20 25 30 32 24 29 31 31

Returns are Gross of Fees.

14

Calendar Year Performance

As of 6/30/2018

Peer Group (5-95%): Separate Accounts/CITs - U.S. - Large Growth

-52.5

-45.0

-37.5

-30.0

-22.5

YTD 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

-15.0

-7.5

0.0

7.5

15.0

22.5

30.0

37.5

45.0

52.5

Ret

urn



YTD Rank 2017 Rank 2016 Rank 2015 Rank 2014 Rank 2013 Rank 2012 Rank 2011 Rank 2010 Rank 2009 Rank 2008 Rank



MFS® Growth Equity




8.03

4.43

12.50

12.08

5.42

7.25

28.09

25.97

31.90

37.35

20.54

30.21

4.01

6.59

3.18

1.66

5.01

7.08

5.43

3.51

8.16

11.93

-0.33

5.67

14.02

16.60

9.65

10.02

14.95

13.05

35.44

32.58

37.77

42.48

36.79

33.48

14.49

15.60

18.28

19.28

13.44

15.26

7.08

2.02

0.37

2.23

8.86

2.64

19.75

7.80

16.94

17.27

13.13

16.71

32.58

34.73

39.74

43.75

23.62

37.21

-34.81

-26.84

-36.78

-42.13

-34.89

-38.44

39 43 62 38 23 42 68 6 22 58 29

72 60 41 57 7 69 52 32 98 49 5

12 22 67 17 70 22 27 47 42 25 46

14 5 77 4 66 8 19 30 38 15 81

64 89 53 85 15 30 79 4 80 90 30

43 30 36 33 33 58 58 25 45 35 61

15

Rolling Excess Return Analysis

As of 6/30/2018

Rolling Excess Returns

Time Period: 7/1/2008 to 6/30/2018

Rolling Window: 3 Years 3 Months shift Calculation Benchmark: Russell 1000 Growth TR USD

09 12

2012

03 06 09 12

2013

03 06 09 12

2014

03 06 09 12

2015

03 06 09 12

2016

03 06 09 12

2017

03 06 09 12

2018

03 06-6.0

-4.0

-2.0

0.0

2.0

4.0

Exc

ess

Ret

urn

Rolling Excess Return Rankings

Time Period: 7/1/2008 to 6/30/2018

Rolling Window: 3 Years 3 Months shift Calculation Benchmark: Russell 1000 Growth TR USD

1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile

09 12

2012

03 06 09 12

2013

03 06 09 12

2014

03 06 09 12

2015

03 06 09 12

2016

03 06 09 12

2017

03 06 09 12

2018

03 06100.0

75.0

50.0

25.0

0.0

Boston Advisors Large Cap Growth Mar Vista Strategic Growth MFS® Growth EquityT. Rowe Price US Large-Cap Core Grwth Eq Sawgrass Focused Growth Equity Russell 1000 Growth TR USD

Exc

ess

Ret

urn

16

Rolling Risk Analysis

As of 6/30/2018

Rolling Standard Deviation

Time Period: 7/1/2008 to 6/30/2018

Rolling Window: 3 Years 3 Months shift

09 12

2012

03 06 09 12

2013

03 06 09 12

2014

03 06 09 12

2015

03 06 09 12

2016

03 06 09 12

2017

03 06 09 12

2018

03 067.5

10.0

12.5

15.0

17.5

20.0

22.5

25.0

Std

Dev

Rolling Standard Deviation Rankings

Time Period: 7/1/2008 to 6/30/2018


1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile

09 12

2012

03 06 09 12

2013

03 06 09 12

2014

03 06 09 12

2015

03 06 09 12

2016

03 06 09 12

2017

03 06 09 12

2018

03 06100.0

75.0

50.0

25.0

0.0

Boston Advisors Large Cap Growth Mar Vista Strategic Growth MFS® Growth EquityT. Rowe Price US Large-Cap Core Grwth Eq Sawgrass Focused Growth Equity Russell 1000 Growth TR USD

Std

Dev

17

Correlation Matrix

As of 6/30/2018

Correlation Matrix (Excess Returns vs. Russell 1000 Growth TR USD)

Time Period: 3/1/2007 to 6/30/2018

Calculation Benchmark: Russell 1000 Growth TR USD

1 2 3 4 5 6

1.00

-0.08 1.00

0.24 -0.30 1.00

0.03 -0.34 0.50 1.00

0.25 0.32 -0.09 -0.40 1.00

1.00

1 Boston Advisors Large Cap Growth

2 Mar Vista Strategic Growth

3 MFS® Growth Equity

4 T. Rowe Price US Large-Cap Core Grwth Eq

5 Sawgrass Focused Growth Equity

6 Russell 1000 Growth TR USD







Correlation Matrix

Time Period: 3/1/2007 to 6/30/2018

1 2 3 4 5 6

1.00

0.92 1.00

0.97 0.90 1.00

0.97 0.90 0.98 1.00

0.93 0.91 0.91 0.90 1.00

0.99 0.94 0.98 0.98 0.94 1.00

1 Boston Advisors Large Cap Growth

2 Mar Vista Strategic Growth

3 MFS® Growth Equity

4 T. Rowe Price US Large-Cap Core Grwth Eq

5 Sawgrass Focused Growth Equity

6 Russell 1000 Growth TR USD

18

Rolling Risk Analysis

As of 6/30/2018

Rolling Correlation

Time Period: 3/1/2007 to 5/31/2018


03 06 09 12

2013

03 06 09 12

2014

03 06 09 12

2015

03 06 09 12

2016

03 06 09 12

2017

03 06 09 12

2018

03 06

0.9

0.9

0.9

1.0

1.0

1.0



Cor

rela

tion

Rolling Correlation

Time Period: 3/1/2007 to 5/31/2018


11/2010 5/2011 11/2011 5/2012 11/2012 5/2013 11/2013 5/2014 11/2014 5/2015 11/2015 5/2016 11/2016 5/2017 11/2017 5/20180.9

0.9

0.9

1.0

1.0

1.0

Cor

rela

tion

19

Risk and Reward

As of 6/30/2018

Risk-Reward: 5-Year

Time Period: 7/1/2013 to 6/30/2018


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Ret

urn

Risk-Reward: 10-Year

Time Period: 7/1/2008 to 6/30/2018


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0

0.0

3.0

6.0

9.0

12.0

15.0

18.0

Ret

urn

Risk-Reward: 3-Year

Time Period: 7/1/2015 to 6/30/2018


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0

0.0

3.0

6.0

9.0

12.0

15.0

18.0

21.0

Ret

urn

Risk-Reward: 7-Year

Time Period: 7/1/2011 to 6/30/2018


Std Dev

0.0 3.0 6.0 9.0 12.0 15.0 18.0

0.0

3.0

6.0

9.0

12.0

15.0

18.0

21.0

Ret

urn



20

Up and Down Market Capture

As of 6/30/2018

Up and Down Market Capture: 5-Year

Time Period: 7/1/2013 to 6/30/2018


Down Capture Ratio

0.0 20.0 40.0 60.0 80.0 100.0 120.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Up

Cap

ture

Rat

io


Time Period: 7/1/2008 to 6/30/2018


Down Capture Ratio

0.0 20.0 40.0 60.0 80.0 100.0 120.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Up

Cap

ture

Rat

io


Time Period: 7/1/2015 to 6/30/2018


Down Capture Ratio

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Up

Cap

ture

Rat

io


Time Period: 7/1/2011 to 6/30/2018


Down Capture Ratio

0.0 20.0 40.0 60.0 80.0 100.0 120.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Up

Cap

ture

Rat

io



21

Multi Statistic Analysis

As of 6/30/2018

Information Ratio 3 Yr-2.0

-1.8

-1.6

-1.4

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

-0.0

0.2

0.4

0.6

0.8

Tracking Error 3 Yr0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Trackin

g Error

Alpha 3 Yr-6.0

-5.5

-5.0

-4.5

-4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

Sharpe Ratio 3 Yr0.6

0.7

0.7

0.8

0.8

0.9

0.9

1.0

1.0

1.1

1.1

1.2

1.2

1.3

1.3

1.4

1.4

Sharpe

Ratio

(arith)



MFS® Growth Equity




Std Dev 3 Yr8.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

Time Period: 7/1/2015 to 6/30/2018

Std Dev RankSharpe

RatioRank Alpha Rank

InformationRatio

RankTracking

ErrorRank



MFS® Growth Equity




10.90 1.11 -1.52 -1.38 1.51

8.62 1.02 -1.10 -1.14 4.80

9.76 1.17 -0.35 -0.77 3.65

11.06 1.29 0.00 0.00

13.36 1.29 0.88 0.63 4.66

11.46 1.40 1.68 0.55 3.22

63 41 53 83 94

89 31 28 58 57

43 6 7 5 71

10 13 11 4 26

98 59 44 75 23

55 13 20 100

22


As of 6/30/2018


-1.4

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

-0.0

0.2

0.4

0.6

0.8


1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Trackin

g Error

Alpha 5 Yr-4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0


1.0

1.0

1.1

1.1

1.2

1.2

1.3

1.3

1.4

1.4

1.5

1.5

1.6

1.6

Sharpe

Ratio

(arith)



MFS® Growth Equity




Std Dev 5 Yr9.0

9.3

9.5

9.8

10.0

10.3

10.5

10.8

11.0

11.3

11.5

11.8

12.0

12.3

12.5

12.8

13.0

13.3

13.5

Time Period: 7/1/2013 to 6/30/2018

Std Dev RankSharpe


InformationRatio

RankTracking

ErrorRank



MFS® Growth Equity




10.41 1.50 0.14 -0.14 1.99

12.46 1.53 1.19 0.71 4.50

9.12 1.36 -0.03 -0.80 4.41

10.47 1.52 0.00 0.00

10.98 1.55 0.97 0.36 3.13

9.65 1.48 0.36 -0.50 3.27

72 16 24 36 91

90 22 20 56 67

46 8 11 14 71

12 9 9 4 25

98 48 32 74 28

65 11 29 100

23


As of 6/30/2018


-1.2

-1.1

-1.0

-0.9

-0.8

-0.7

-0.6

-0.5

-0.4

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7


2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Trackin

g Error


0.9

0.9

1.0

1.0

1.1

1.1

1.2

1.2

1.3

1.3

1.4

Sharpe

Ratio

(arith)

Alpha 7 Yr-4.5

-4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5



MFS® Growth Equity




Std Dev 7 Yr9.8

10.0

10.3

10.5

10.8

11.0

11.3

11.5

11.8

12.0

12.3

12.5

12.8

13.0

13.3

13.5

13.8

14.0

14.3

14.5

14.8

Time Period: 7/1/2011 to 6/30/2018

Std Dev RankSharpe


InformationRatio

RankTracking

ErrorRank



MFS® Growth Equity




9.85 1.27 0.92 -0.47 4.34

10.53 1.32 1.04 -0.19 3.31

13.49 1.29 0.97 0.67 4.24

11.40 1.26 0.18 -0.07 2.00

11.90 1.32 0.99 0.38 2.98

11.47 1.27 0.00 0.00

76 15 22 29 91

93 6 10 39 68

56 7 10 10 77

16 10 10 2 39

98 12 11 62 37

70 14 27 100

24


As of 6/30/2018


-1.0

-0.9

-0.8

-0.7

-0.6

-0.5

-0.4

-0.3

-0.2

-0.1

-0.0

0.1

0.2

0.3

0.4

0.5

0.6


2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Trackin

g Error

Alpha 10 Yr-4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0


0.5

0.5

0.5

0.5

0.6

0.6

0.6

0.6

0.6

0.7

0.7

0.7

0.7

0.7

0.8

0.8

0.8

0.8

0.8

0.9

Sharpe

Ratio

(arith)



MFS® Growth Equity




Std Dev 10 Yr12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

17.5

18.0

18.5

Time Period: 7/1/2008 to 6/30/2018

Std Dev RankSharpe


InformationRatio

RankTracking

ErrorRank



MFS® Growth Equity




15.29

14.24

0.79

0.81

0.56

1.12

0.17 3.06

0.01 4.59

16.73 0.81 1.06 0.50 3.96

15.06 0.76 0.00 0.00

12.37 0.80 0.79 -0.32 5.17

14.39 0.85 1.17 0.29 2.3381 6 12 11 92

87 11 13 30 40

54 19 23 18 79

16 12 14 3 57

98 14 18 61 29

61 28 38 100

25

Batting Average and Drawdown

As of 6/30/2018



Drawdown

Time Period: 7/1/2008 to 6/30/2018

Source Data: Monthly Return

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018-45.0

-40.0

-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

Batting Average

Source Data: Monthly Return Calculation Benchmark: Russell 1000 Growth TR USD

3 Years 5 Years 7 Years 10 Years0.0

15.0

30.0

45.0

60.0

Bat

ting

Ave

rage

26

MPT Statistics

As of 6/30/2018

MPT Statistics: 3-Year

Time Period: 7/1/2015 to 6/30/2018 Calculation Benchmark: Russell 1000 Growth TR USD

BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Russell1000

GrowthTR USD

Return

Excess Return

Std Dev

Beta

Tracking Error

Sharpe Ratio

Alpha

Information Ratio

Batting Average

Up Capture Ratio

Down Capture Ratio

12.15

-2.83

9.76

0.83

3.65

1.15

-0.35

-0.77

36.11

78.43

73.24

9.52

-5.46

8.62

0.71

4.80

1.02

-1.10

-1.14

27.78

71.70

83.19

17.92

2.94

13.36

1.14

4.66

1.25

0.88

0.63

58.33

115.39

110.21

12.89

-2.09

10.90

0.98

1.51

1.10

-1.52

-1.38

41.67

95.28

108.91

14.98

0.00

11.06

1.00

0.00

1.26

0.00

100.00

100.00

100.00

16.75

1.77

11.46

0.99

3.22

1.35

1.68

0.55

55.56

104.93

95.09



Return

Excess Return

Std Dev

Beta

Tracking Error

Sharpe Ratio

Alpha

Information Ratio

Batting Average

Up Capture Ratio

Down Capture Ratio

16.09

-0.27

10.41

0.98

1.99

1.45

0.14

-0.14

55.00

97.13

94.75

12.84

-3.52

9.12

0.79

4.41

1.33

-0.03

-0.80

36.67

80.68

83.26

19.54

3.18

12.46

1.12

4.50

1.47

1.19

0.71

60.00

112.40

101.59

16.36

0.00

10.47

1.00

0.00

1.46

0.00

100.00

100.00

100.00

14.71

-1.65

9.65

0.88

3.27

1.43

0.36

-0.50

38.33

87.30

81.75

17.49

1.13

10.98

1.00

3.13

1.49

0.97

0.36

58.33

102.59

95.31

27

MPT Statistics

As of 6/30/2018



BostonAdvisors

LargeCap

Growth

MarVista

StrategicGrowth

MFS®GrowthEquity

T. RowePrice

USLarge-Cap

CoreGrwth

Eq

SawgrassFocused

GrowthEquity

Russell1000

GrowthTR USD

Return

Excess Return

Std Dev

Beta

Tracking Error

Sharpe Ratio

Alpha

Information Ratio

Batting Average

Up Capture Ratio

Down Capture Ratio

16.02

1.14

11.90

1.00

2.98

1.29

0.99

0.38

55.95

103.20

97.40

14.74

-0.14

11.40

0.98

2.00

1.24

0.18

-0.07

53.57

97.16

94.46

14.88

0.00

11.47

1.00

0.00

1.24

0.00

100.00

100.00

100.00

14.25

-0.63

10.53

0.88

3.31

1.29

1.04

-0.19

44.05

90.62

83.16

12.85

-2.03

9.85

0.80

4.34

1.25

0.92

-0.47

41.67

83.83

79.62

17.72

2.84

13.49

1.12

4.24

1.26

0.97

0.67

58.33

112.81

105.16



Return

Excess Return

Std Dev

Beta

Tracking Error

Sharpe Ratio

Alpha

Information Ratio

Batting Average

Up Capture Ratio

Down Capture Ratio

13.82

1.99

16.73

1.08

3.96

0.84

1.06

0.50

55.83

109.31

104.02

12.35

0.52

15.29

1.00

3.06

0.82

0.56

0.17

54.17

102.04

100.37

10.18

-1.65

12.37

0.78

5.17

0.82

0.79

-0.32

44.17

79.55

74.94

11.83

0.00

15.06

1.00

0.00

0.80

0.00

100.00

100.00

100.00

11.87

0.05

14.24

0.90

4.59

0.84

1.12

0.01

44.17

91.78

85.69

12.50

0.68

14.39

0.94

2.33

0.87

1.17

0.29

55.00

98.03

92.62

28

Investment Option Narratives

29

As of 6/30/2018


Strategy Overview Recommendation Summary

BA believes the best way to capture pricing anomalies is through the complementary disciplines of quantitative and qualitative analysis. Robust quant models provide a consistent and systematic means of capturinginefficiencies, while a qualitative approach provides context and perspective.

The universe for large growth is comprised of all stock that fall within the market cap range of the Russell 1000 Growth Index and that have adequate data availability and liquidity (about 1,500 stocks).

The investment process is comprised of three distinct proprietary models: Regime Model (RM), Stock Selection Model (SSM), and Custom Risk Model (CRM). The RM was built to address the fact that factors behave differently depending on the market environment. It runs weekly and utilizes 28 market, fundamental, and economic factors to identify the general market environment as either bull, bear, or efficient. The results of the RM are then applied to the SSM to determine underlying factor weightings. The SSM runs nightly and ranks stocks from one to ten within each industry group based on the combined scores of four general groups of fundamental factors (Valuation, Investor Sentiment, Growth/Profitability, and Earnings Quality). With the exception of stocks that are large weightings in the index, the team focuses on the top three deciles for new purchases. The PMs conduct a final fundamental, qualitative step to validate the data and pick those stocks with the best operating environments and entry points.

Sector and industry weights are generally kept within 3-5% of the index. The final portfolio holds 75-100 stocks. Annual portfolio turnover averages 70-100%.

The combination of a disciplined, robust quantitative process, a critical and validating fundamental research overlay, and a portfolio tilt based on where we are in the current market cycle leads to a balanced portfolio that is not subject to the typical pitfalls of pure quant strategies (large underperformance at inflection points). In addition, the portfolios are not optimized and thus less subject to estimation error. Instead of the fundamental overlay simply being an afterthought, BA’s review is a full-fledged independent step in the portfolio construction process.

The Research Group recommends Boston Advisor’s Large Cap Growth strategy for clients searching for a diversified domestic large cap growth strategy that has shown consistent ability to add value in different market environments. Over its history, the strategy’s tracking error has averaged 2.5% with an active share of between 60 and 70. The strategy works well as a standalone large growth option for clients that want a disciplined, active investment strategy, but with a more compressed range of relative performance compared to a concentrated strategy (i.e., a smoother pattern of performance). Ultimately, over a full market cycle, the opportunity cost for the smoother ride though, is lower expected alpha.

All portfolios are team-managed with one lead portfolio manager and one backup portfolio manager assigned to each strategy. PM Doug Riley along with backup PM David Hanna leads the LG strategy. Research Analyst Michael Dorsey provides qualitative support to the team, with additional support from the quantitative research team of Ted Mulrane (Director of Quantitative Research) and Sarah Hochstatter. As CIO, Vogelzang possesses oversight for all of the firm’s strategies. Lead PM Riley has final say on all purchases and sales for the LG strategy based on team discussions.

President/CIO Michael Vogelsang owns a majority of the employee-owned portion of the equity. We would prefer to see this more evenly distributed among key investment professionals.

BA admits that the Regime Model (RM) has difficulty distinguishing between efficient and bull markets, and has yet to recognize a market as efficient since it started live in 2009 (it did, however, recognize a handful of efficient periods during out-of-sample testing). As the model is periodically recharacterized, BA expects the additional “training” to improve its ability to identify all three regimes.

While BA offers an institutional mutual fund under the Nationwide fund platform, its exposure can be different from the separate account composite in that it has the ability to hedge market exposure via futures and/or ETFs when market volatility reaches a particular threshold. BA has yet to implement the hedging so there exist too many unknowns for us to recommend the fund option at this time.

Team Overview Points to Consider

Boston Advisors (BA) was originally founded in 1982 as a subsidiary of The Advest Financial Group (AFG). After a transaction in 2004 that put the company under Merrill Lynch, BA’s management negotiated a buyout, and on April 1, 2006, the firm became a privately held, majority employee-owned firm. In March 2011, BA purchased the minority interests held by Merrill Lynch with the help of a personal investment by Michael Krupka (a partner at Bain Capital and friend of President Michael Vogelzang) for a 20% equity stake. In May 2011, BA’s largest client, the Knights of Columbus, became a minority shareholder with a 19.9% equity interest in the firm. Eighteen of 39 employees hold 60.1% of the equity through Birdsong Capital, LLC, a separate holding structure that was established so 100% of the voting rights are held by employees. Vogelsang owns a majority of Birdsong Capital.

The firm manages about $5 billion across 13 distinct equity and balanced strategies. Its client base is a mixture of high net worth (30%) and institutional (70%).

Historically, the LG strategy has outperformed in both bull, bear and efficient markets (low volatility with flat returns). While we would expect the relative performance of the strategy to hold up better during major market inflections compared to other purely quantitative strategies, we acknowledge there could be short periods of underperformance as the team recognizes the regime change and implements portfolio adjustments. Any other periods of underperformance will be driven primarily by bottom-up stock selection.

Given the diversification by number of stocks and the relatively tight sector weights versus the index, we would not expect huge relative swings in the strategy’s performance pattern. Historically, the largest relative calendar year differences in performance have been between 3% and 4%. While BA states an expected tracking error between 2% and 6%, we would expect it to lean more towards the lower half of that range.

Firm Overview Expectations

Narratives presented for strategies Approved at AndCo. All data represents AndCo's view and may differ from the manager's interpretation.

30

As of 6/30/2018



MV believes that stock prices follow intrinsic value over the long term and that intrinsic value is created when returns on capital exceed cost of capital. Sustaining excess returns on capital requires durable competitive advantages. The team also focuses equally on capital preservation and appreciation.

The team narrows the investable universe to only those companies with the widest moats where management is appropriately aligned with shareholders that have the ability to reinvest in the business and compound shareholder value. MV conducts deeper research and valuation analysis on 150-170 companies. They utilize proprietary financial models to conduct valuation analysis on each stock to assess the likely future free cash flows of the business by running a wide range of scenarios. Each scenario is applied a probability to derive a weighted-average estimate of intrinsic value. They then rank the universe by margin of safety and only invest in those businesses whose stocks are trading at the best discounts to fair value. A stock that has a narrow range of outcomes with a large margin of safety, a wide economic moat with a management team that optimizes returns will results in a larger weight in the portfolio. Their largest positions will be those stocks that they feel present an asymmetrical payoff relative to the risks in the stock.

Stocks are typically sold when: 1) stock price exceeds estimates of intrinsic value; 2) business fundamentals deteriorate such that original thesis is proven incorrect; and 3) capital is reallocated to ideas with better risk/reward characteristics. Annual portfolio turnover averages less than 20%.

The strategy typically holds 30 to 50 stocks. Individual position sizes are limited to a maximum of 5% at cost. The maximum allocation to any one sector equals the index + 15%. They tend to have zero exposure to Utilities and sometimes Telecom stocks. Cash levels are typically less than 5%, but the stated maximum is 15%. MV can hold ADRs and have no stated maximum. The average allocation historically has been about 4%.

We recommend Mar Vista Strategic Growth for both defined benefit and defined contribution clients in search of a high quality/low risk large growth strategy. The strategy works well as either a complement to a higher beta growth strategy or as a standalone large growth option for risk averse defined benefit clients. Clients should expect tracking error to be somewhat high given the concentrated and index agnostic nature of the strategy.

The team has a unique perspective as a domestic large growth manager in many aspects of its profile: 1) they define risk as the odds of permanent capital loss; 2) they define growth by intrinsic value growth as opposed to revenue and earnings growth; and 3) they believe margin of safety and growth are not mutually exclusive. The team’s conviction to be different is also apparent by viewing their list of holdings—many of the stocks they hold are not the “usual suspects” seen in almost every one of their peers’ portfolios. We appreciate the team’s focus on the bottom-up, fundamental company analysis and future expected risk-adjusted returns as opposed to worrying about index relative positioning. The team has been managing money together in a collegial,performance-driven structure for almost a decade (almost 15 years for the founders). The investment team is highly incented to perform given the equity ownership and personal capital at risk in MV strategies.

Given MV’s recent hiring as sole subadvisor for Harbor Strategic Growth Fund, the firm now has multiple vehicles available to clients. The fund has two attractively-priced share classes that would work well for AndCo clients. In addition, for those clients that prefer a separate account vehicle, the minimum account size is only $1 million.

MV’s four-person investment team consists of the two founders, Myers and Massey, as well as analysts Honeycutt and Prestine. All four retain sector research responsibilities and coverage is as follows: Myers covers Industrials & Materials, Massey covers Health Care & Financials, Honeycutt covers Consumer, and Prestine covers Technology, Energy & Telecom. While the process is collaborative and all team members have input, final portfolio decisions fall to Myers and Massey.

Because each member of the investment team is relatively young, there has been no discussion or planning for succession at this stage. However, they have stated they understand they will have to think about it at some point in the medium-term future.

While MV does not have a specific capacity stated for Strategic Growth, they have communicated the thinking that a collective (both Strategic and Focus Growth) total of $15 billion to $20 billion is likely to be a level where they reevaluate and begin to slow growth. Given current firm assets under management of $4 billion, we are a ways from any issues.


Mar Vista Investment Partners (MV) was formed by Silas Myers and Brian Massey in November 2007 as a spin out from Roxbury Capital. All of the assets under their management at Roxbury transitioned to MV through a sub-advisory arrangement. MV is located in Santa Monica, CA and manages just under $5 billion across three focused high quality growth strategies for its primarily institutional client base. MV was launched with the financial and operational support of Roxbury, which retained a preferred equity stake in the firm. In January 2015, Roxbury’s equity stake was extinguished and 100% of MV is now owned by the investment team (51% Myers, 29% Massey, 10% each Joshua Honeycutt and Jeffrey Prestine).

We would expect the strategy underperform in market environments where investors embrace risk at any cost and favor low quality businesses and/or momentum stocks. We would also expect the strategy to struggle at the peak of a market cycle, when valuations are stretched or when deep cyclicals/commodity stocks are driving market returns.

We would expect MV to outperform in down markets given the focus on preservation of capital. For example, the composite outperformed the Russell 1000 Growth Index by 11.6% in 2008. We would also expect the strategy to outperform the index when company fundamentals and valuation are rewarded. Given the concentrated nature of the portfolio, returns will ultimately be driven by the team’s ability to pick good stocks.



31

As of 6/30/2018

MFS® Growth Equity


The team’s investment philosophy is based on the belief that: 1) fundamentals drive earnings and cash flow, 2) earnings and cash flow growth drive share price performance over the long term, and 3) investors often underestimate the rate and duration of growth.

Idea generation comes mainly from the analysts, but the PMs also actively participate in the research process. The goal is to find high quality companies with sustainable earnings growth of 10-15%. MFS defines quality as leading brands, low leverage, high free cash flow and strong management teams. Sector analysts are responsible for conducting bottom-up fundamental due diligence, developing and maintaining their own in-depth financial models, and ranking companies either “buy”, “hold”, or “sell”. Analysts and PMs exchange ideas both formally and informally. In addition, analysts distinguish their best ideas through the firm’s research portfolios that are live strategies with outside assets. Those portfolios are expected to received the analysts’ top ideas. Ultimately, for the Growth Equity portfolio, the PMs have final discretion on buys and sells. The portfolio is well diversified across 80-110 stocks. The strategy is characterized as large cap, but will dip down into more mid cap names as well. Industry exposure is limited to 25% of the portfolio. Individual stock positions are limited to 5% at time of purchase. The strategy allows investments in non-US domiciled companies and does not have a stated maximum. Historically, the portfolio has averaged about 6% , but has had periods where the weighting was above 10%.

Stocks are reviewed for sale when: 1) the target price is reached, 2) there is a change in the investment thesis, and/or 3) better alternatives exist. Average annual portfolio turnover has historically been about 70%.

MFS touts a highly collaborative and integrated investment management culture, which lends itself well to building experienced, long-standing investment teams that have consistently added value via bottom-up research. The Growth Equity strategy is characterized by a diverse portfolio of high quality, attractively-valued growth stocks with moderate tracking error and consistent value add over its history.

The Research Group recommends MFS Growth Equity for all client types looking for a diversified, active large cap growth strategy with the flexibility to dip down into middle capitalization companies on an opportunistic basis. Given the stock-level diversification and less volatile relative performance pattern, we believe the strategy is appropriate to utilize on a standalone basis. While the strategy is actively managed, tracking error tends to be on the low end of the active management spectrum. The strategy would also work well complemented by a more concentrated, index agnostic strategy in a client’s overall domestic growth allocation.

PMs Eric Fischman and Matthew Sabel lead the Growth Equity strategy. Institutional PMs Andrew Boyd and Rob Almeida manage the cash for the strategy, and oversee portfolios with any client-level restrictions. Fischman was the sole PM for 11 years and Sabel was promoted to co-PM in April 2014 after being MFS’ lead Technology analyst. The two have similar styles and processes and only really differ occasionally on valuation analysis. The PMs are supported by MFS’ global sector team. The team is made up of over 80 research analysts, with about 25 of those focused on US equities. The PMs work closely with the global sector teams on bottom-up company analysis, but ultimately have final decision-making authority for all buys and sells.

MFS does not typically give specific dollar amounts for product capacity because it is a moving target due to the changing market and asset levels in overlapping strategies. However, the firm communicates that it takes capacity constraints very seriously and has a track record of closing strategies when necessary (and typically early).

The minimum separate account size is $50 million. However, MFS also offers CIT and mutual fund vehicles that are attractively priced.


MFS’ investment management history dates back to 1924. MFS began managing tax-exempt capital in 1970. Headquartered in Boston, MFS has been a majority-owned subsidiary of Sun Life of Canada since 1982. The firm maintains considerable autonomy in managing its day-to-day business. Up to 22% of MFS’ common stock is available for ownership by senior management, investment professionals and other key employees. MFS has nine offices around the world. Total firm assets under management (AUM) are over $400 billion across a plethora of equity, fixed income and balanced/blended strategies. The client mix is about 50/50 institutional/retail.

The strategy is expected to perform well on a relative basis during periods where the market rewards high quality growth companies with strong or improving fundamentals. For example, in 2007 the strategy outperformed the index by over 10% as companies with strong cash flow, rising earnings per share, and high returns outperformed.

The strategy tends to be underweight mega cap companies due to the lower rates of sustainable growth so we would expect it to underperform when those stocks drive market returns. In addition, during periods where risk appetite is high and the market favors low quality/higher beta companies, we would expect the strategy to struggle on a relative basis.



32

As of 6/30/2018



TRP believes that investing in high-quality, large-cap companies with sustainable competitive advantages can produce attractive returns with moderate risk. They look for companies that operate in growth sectors of the economy and that possess attractive business models, operational and financial flexibility, and seasoned management teams with a history of thoughtful capital allocation. They believe these characteristics can lead to sustainable high earnings and free cash flow growth, which drives shareholder value. Bottom-up, fundamental research is key to identifying these successful long-term investments. In addition, they seek to avoid overpaying for growth and build diversified portfolios to help manage risk.

The PMs and in-house team of equity research analysts perform the majority of the research. The PMs and analysts evaluate each company’s growth prospects, balance sheet, and valuation. Meeting with company management is the core strength of their research. They also interview customers, suppliers, competitors, and industry experts. These activities allow analysts to develop relationships with and insights into hundreds of companies within a wide variety of industries. In addition, analysts work closely with PM teams to benefit from their experience and gain an understanding of the qualitative factors that most influence stock selection. TRP considers it a “push/pull” relationship between PMs and analysts.

The final portfolio ranges from 100 to 140 holdings with the largest weightings typically in the largest market cap companies (mega caps) and the top ten holdings representing approximately 40% of assets. Individual position sizes range from 0.25% to 5%. Sector weights typically range from 0.5X to 3.0X versus the Russell 1000 Growth Index. The strategy’s annual portfolio turnover typically ranges from 30% to 45%.

The Research Group recommends TRP Large Cap Core Growth for both defined benefit and defined contribution clients looking for a diversified large cap growth option with consistently strong relative performance over time. T. Rowe Price is a well-recognized brand within the defined contribution market and the fund has historically outperformed a majority of its peers over a full market cycle. In addition, PM Larry Puglia has been managing the strategy since its inception and is supported by a deep, experienced team of PMs and analysts. Clients should be cognizant that there have been periods where the Fund has underperformed the indexsignificantly (e.g., 2016) and we would continue to expect those periods to occur going forward.

The strategy has been managed by PM Larry Puglia since its inception. Puglia has 27 years of investment experience, 26 of which are with TRP. He collaborates with PMs Joseph Fath, Taymour Tamaddon, and David Rowlett who have responsibilities for the other two large growth strategies managed at the firm. All four PMs make up the U.S. Large-Cap Growth Equity (LCGE) investment team. No one member has sole decision-making authority over any of the three portfolios.

The LCGE team is supported by an equity research team of over 150 analysts and industry specialists. About 40 of those 150 analysts are covering stocks for the Large-Cap Core Growth Fund.

The large asset level (over $55B) of the strategy is an ongoing issue to watch. We would expect the large assets to limit flexibility and force Puglia to only own larger, more liquid securities. TRP has not communicated any ultimate capacity level, however they do not feel constrained at this level of assets and believe they have plenty of room to continue to grow assets.

In concert with the above comment, there is considerable stock overlap across all three large growth strategies, which together account for over $150B in assets under management. All three remain open for new investors.

Puglia has been the sole PM on the strategy since its inception so key-man risk is higher-than-average for the strategy. This is somewhat minimized by the team approach, however we would have to reevaluate our recommendation if he were to leave.

While the strategy allows up to 20% in non-US domiciled stocks, historically the allocation has been below 10%.


Founded in 1937, T. Rowe Price (TRP) is headquartered in Baltimore, MD and has offices in Hong Kong, London, Singapore, and Tokyo. The firm employs over 6,000 people and is well-known in the defined contribution space as a disciplined, risk-conscious active equity fund manager. TRP is a publicly-traded entity, however employees own nearly 20% of the equity. Today, the firm manages over $900 billion in assets across both equity and fixed income for both institutional and retail clients.

We would expect the strategy to outperform strongly in periods where company growth fundamentals drive stock performance. Given the strategy’s overweight to large and mega cap stocks versus the index, we wouldanticipate outperformance in periods where large caps outperforms small caps.

We would expect the strategy to struggle on a relative basis in periods where correlations move towards one and volatility is high (2008, 2011). These two periods, in particular, were difficult for the strategy primarily due to investors’ fears and liquidity events driving many forced sales in the largest, most liquid stocks. In addition, periods where investors seek yield (e.g., 2014 and first quarter of 2016) will not be favorable for the strategy.

The strategy has historically had a slightly higher beta which has resulted in higher upside market capture as well as higher downside market capture.



33

As of 6/30/2018



Sawgrass’ growth equity investment philosophy focuses on identifying companies early in their cycle of positive change that should offer above average appreciation potential if held over the long term.

The process begins with a front-end quantitative screen that looks for companies with market caps greater than $2 billion that have attractive sector-specific fundamental characteristics including estimate momentum, earnings growth and valuation. The team focuses the bottom-up fundamental research on the top 20% of the screen output as new idea candidates. The team takes a generalist approach to fundamental research. The goal at this stage of the process is to confirm if the attractive quantitative attributes are sustainable. PMs/analysts closely review balance sheets and income statements with particular attention paid to those companies with the following: 1) strong record of demonstrated earnings growth, 2) positive change in future earnings, 3) reasonable earnings growth valuations, 4) successful companies with strong balance sheet and financial statement data, and 5) viability of continued earnings growth. Risk/reward optimization of the final 45 to 50 best ideas is discussed as a team, however LaPrade has final portfolio decision-making authority. The final Focused Growth portfolio holds 15 to 20 stocks that are well-diversified across sectors.

Stocks are sold when earnings expectations start to decline, fundamental factors begin to experience significant changes, more attractive companies are identified or risk profile realignment is necessary. Average annual portfolio turnover has historically ranged from 50% to 150% on a total dollar basis. The maximum individual stock weighting is 10% at market (5% at cost), but in practice is typically under 8%. Sectors are limited to +/- 25% on the Russell 1000 Growth Index.

Sawgrass Focused Growth Equity is an actively-managed, concentrated large growth strategy that has historically exhibited lower-than-index volatility. The strategy is appropriate as a standalone large growth allocation primarily for risk averse clients given its lower risk profile (downside protection), but would also work well as a complement to a higher beta growth manager similar to Alger Capital Appreciation or Wells Heritage Premier Growth. Given the strategy’s stock-level concentration, clients should expect significant tracking error relative to the index, and along with that, periods of underperformance (mostly in strong up markets).

The growth team is led by PM Martin LaPrade. LaPrade is supported by Dean McQuiddy, Director of Equity Investments, Growth Equity PMs Rusty Creighton and Patrick Riley, and Growth Equity Research Analysts Mark Davis and Anthony Brooks. LaPrade and Riley have both been with the firm since inception, while Davis joined 2001, Creighton joined in 2007, and Brooks joined in 2012. All but Davis, Creighton and Brooks own equity in the firm.

LaPrade has ultimate decision-making responsibilities for all buys and sells for the Focused Growth strategy.

The team has managed a fairly small amount of assets (~$250 million) in the Focused Growth (FG) strategy since its inception of March 2007. However, the team’s Diversified Large Growth (DLG) strategy with an inception date of April 1998 has about $2 billion in assets under management. FG is simply the team’s best ideas from DLG. Ultimate capacity should take into account both strategies given the strong overlap. However, given the large cap nature of the products, we do not foresee capacity as an issue anytime soon.

The strategy is available as a separate account vehicle only.

Given the stock-level concentration and the team’s focus on high quality, attractively-valued companies, relative performance may struggle significantly at times (e.g., 2009 and 2010).


Based in Jacksonville, Florida, Sawgrass Asset Management was founded in 1998 by active principals Andrew Cantor, Dean McQuiddy, and Brian Monroe as a lift-out from what was the investment subsidiary of Barnett Bank. Sawgrass is 100% employee owned by seven partners. The firm manages approximately $4 billion across growth equity and fixed income strategies primarily for institutional clients.

The firm employs over 20 people, 10 of which are investment professionals. The firm has not lost any key management or investment professionals since inception. Day-to-day operations of the business are conducted by the firm’s four-member management team.

Given the team’s focus on companies with strong balance sheets and consistent earnings growth, we would expect the strategy to hold up better on a relative basis in down markets. In addition, the strategy should perform strongly during the established phase of a market cycle when a longer-term trend develops and investors are focused on earnings and valuation.

Historically, the strategy has struggled at inflection points of a market cycle when greed or fear is at its highest and tangible fundamentals are ignored. For example, Sawgrass underperformed significantly in 2009 as the market sharply recovered post the Great Recession.

In short, the strategy tends to outperform in negative and moderately positive markets and underperform in strong positive calendar year periods where returns are greater than 15%.



34

Glossary of Terms

Alpha - A measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta.

Batting Average – A measure of a manager's ability to consistently beat the market. It is calculated by dividing the number of months in which the manager beat or matched an index by the total number of months in the period.

Best Quarter- This is the highest quarterly (3 month) return of the investment since its inception.

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.

Down Period Percent - Number of months below 0 divided by the total number of months.

Downmarket Capture Ratio - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance.

Downside Std Dev - This measures only deviations below a specified benchmark.

Excess Return- This is a measure of an investment's return in excess of a benchmark.

Information Ratio - This calculates the value-added contribution of the manager and is derived bydividing the excess 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.

Longest Down-Streak Return - Return for the longest series of negative monthly returns.

Longest Down-Streak # of Periods - Longest series of negative monthly returns.

Longest Up-Streak Return - Return for the longest series of positive monthly returns.

Longest Up-Streak - Longest series of positive monthly returns.

Kurtosis - Kurtosis indicates the peakedness of a distribution. For normal distribution, Kurtosis is 3.

Max Drawdown - The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough.

Max Drawndown # of Periods - This is the number of months that encompasses the max drawdown for an investment.

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.

Skewness - Skewness reflects the degree of asymmetry of a distribution. If the distribution has a longer left tail, the function has negative skewness. Otherwise, it has positive skewness. A normal distribution

is symmetric with skewness 0.

Sortino Ratio - The Sortino Ratio is similar to Sharpe Ratio except it uses downside risk (Downside Deviation) in the denominator. It was developed in early 1980's by Frank Sortino. Since upside variability is not necessarily a bad thing, Sortino ratio is sometimes more preferable than Sharpe ratio.

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 excess returns versus its designated market benchmark.

Treynor Ratio - Similar to Sharpe Ratio, Treynor Ratio is a measurement of efficiency utilizing the relationship between annualized risk-adjusted return and risk. Unlike Sharpe Ratio, Treynor Ratio utilizes "market" risk (beta) instead of total risk (standard deviation). Good performance efficiency is measured by a high ratio.

Up period Percent - Number of months above 0 divided by the total number of months.

Upmarket Capture Ratio - The ratio of average portfolio performance over the designated benchmarkduring periods of positive returns. A higher value indicates better product performance.

Value-Growth Score - Morningstar assigns an Overall Value score and an Overall Growth score to each stock within a fund. Morningstar then calculates a net value-core-growth score for each stock by subtracting the stock's Overall Value score from its Overall Growth score. Once this is done, these raw scores are rescaled to range between -100 to 400 in order to fit within the Morningstar Style Box. Scores below 67 are classified as value, scores above 233 are classified as growth, and scores between 67 and 233 fit within the core boundaries.

Worst Quarter - This is the lowest quarterly (3 month) return of the investment since its inception.

35

Important Disclosures

IMPORTANT DISCLOSURE INFORMATION

This material is confidential and not intended for distribution to the public. AndCo Consulting (“AndCo”) compiled this report for the sole use of the client for which it was prepared. AndCo uses the material contained in this evaluation to make observations and recommendations to the client, however the strategies listed may not be suitable for all investors and there is no guarantee that the strategies listed will be successful. 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 for investment consulting, or investment management analysis services. Additionally, the analysis provided, while generally comprehensive, is not intended to provide complete information on each of the management organizations or their underlying strategies. Please refer to their respective prospectus for complete terms,including risks and expenses.

Performance data is provided for historical and informational purposes only. Where applicable, results shown represent past performance and do not represent expected future performance or experience. Past performance does not guarantee future results. Returns are typically stated net of fees, which may include: investment advisory fees, taxes and other expenses. There may be instances where certain returns are shown gross of fees (i.e., before the aforementioned fees are deducted) and would be noted as such. Generally, there are two instances where returns may be shown as gross figures. In the case of separate accounts, typically returns are demonstrated as gross of fees due to the fact that the fee structure would generally vary widely depending on the client’s size and circumstances. Additionally, there are instances where a strategy vehicle is relatively new and does not have a sufficiently long track record to represent a viable comparison relative to other strategies. Accordingly, the returns for the separate account version of such a strategy could be used as demonstrative of the performance for a similar vehicle; separate account returns are generally shown as gross of fees. It is important to note that any such separate accounts being used as a “proxy” are strictly for illustrative purposes. An investor should not expect the same results from the actual strategy(ies) under consideration. When client-specific performance is shown, AndCo uses time-weighted calculations, which are founded on standards recommended by the CFA Institute. In these cases, the performance-related data shown are based on information that is received from custodians. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement.

RISK FACTORS

THE RISK DISCLOSURES HEREIN DO NOT PURPORT TO COVER ALL RISKS, PLEASE REFER TO THE RESPECTIVE PROSPECTUSES FOR COMPLETE INFORMATION.

As presented in this report, although investing in equities can be beneficial, it is also important to consider the associated risks. Investing in such funds may not be suitable for all investors. Equity markets can be volatile and can decline significantly in response to, or investor perceptions of, issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions. These conditions can affect a single issuer or type of security, issuers within a broad market sector, industry or geographic region, or the equity markets in general. The primary risk factors to consider include, but are not limited to: stock market risk, manager risk, investment style risk, sector-focus risk, issuer risk and liquidity risk. The securities markets are volatile and the market prices of the funds’ securities may decline generally. Securities fluctuate in price based on changes in a company’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. Depending on the specific strategy, there many additional considerations such as the risks associated with equity investing.

SOURCING

Information is based on sources and data believed to be reliable, but AndCo cannot guarantee the accuracy, adequacy or completeness. The information provided is valid as of the date of distribution or the as-of date indicated and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after such date.

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.

This document may contain data provided by Bloomberg. Bloomberg Barclays Index Data provided by way of Barclays Live.

This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance.

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 re-disseminated 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.

36

agenda - keys energy services · 2019-06-02 · retirement system for general employees of the...

Documents