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03-31-2016 Bogdahn Investment ReportNorth Palm Beach Fire &Police WWW.BOGDAHNGROUP.COM Pension Fund Investment Performance Review Period Ended March 31, 2016 THE BOGDAHN GROUP© �I sinrplifjirr; lour irrvestr�rent rnrr/ fidrrciar•h deeisiorts Table Of Contents Market Environment Compliance Report Schedule of Investable Assets Asset Allocation History by Segment Asset Allocation by Segment Asset Allocation Pie Chart Asset Allocation & Performance Trailing periods (gross) Asset Allocation & Performance Trailing periods (net) Asset Allocation & Performance Fiscal Year periods (gross) Asset Allocation & Performance Fiscal Year periods (net) Historical Rolling Performance Total Fund Historical Rolling Performance Total Fund Policy Total Fund Returns Based Analysis Highland LCG Returns Based Analysis Highland International Returns Based Analysis American Realty Returns Based Analysis Benchmark History Definitions & Disclosure Pages Page 1 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 23 Page 25 Page 27 Page 29 Page 30 THE (� BOGDAHN GROUP. 1st Quarter 2016 Market Environment Page 1 THE [� BOGDAHN `'� GROUP. • The 1st quarter of 2016 proved volatile as broad equity markets declined significantly through the first half of the period due to global economic growth concerns, low and falling energy prices, and the prospect of rising interest rates in the U.S. At its lowest point on February 11, 2016, the S &P 500 had fallen by - 10.3 %. However, equity prices recovered through the second half of the quarter as investors reacted to improving economic data, a recovery in commodity prices, and various central bank announcements of continued monetary policy easing. As a result, the S &P 500 appreciated 13.0% through the end of March and finished the quarter with a return of 1.3 %. ■ Each of the U.S. stock market indices we track followed a similar pattern to the S &P 500 and were modestly positive through the 1st quarter with the exception of the Russell 2000, which returned -1.5% for the period. For the 1- year period, domestic large cap stock indices were the best performers, with the S &P 500 and Russell 1000 returning 1.8% and 0.5 %, respectively, while domestic small- ( -9.8 %) and mid - capitalization (4.0 %) indices posted negative results for the period. In U.S. dollar (USD) terms, the MSCI Emerging Market (EM) Index (net) surged in the back half of the period, returning a solid 5.7% for the quarter. Developed international markets did not fare as well with the MSCI EAFE Index (net) finishing the quarter with a return of -3.0 %. Both international benchmarks were weak over the 1 -year period with the MSCI EAFE Index returning -8.3% and the MSCI EM Index returning - 12.0 %. ■ The U.S. Treasury yield curve flattened throughout the 1st quarter. The drop in yields was primarily caused by U.S. Federal Reserve (Fed) indications they would likely be slowing their expected pace of future interest rate increases, as well as an increased demand for safe haven assets, as the volatility in the equity markets pushed investors away from risk assets. As a result, U.S. fixed income markets were positive across maturities and qualities for the period. The broad market Barclays U.S. Aggregate Index returned a solid 3.0% during the quarter. This broad market performance was led by investment grade corporates which benefitted from their higher duration as wells as interest rate spreads that declined significantly in the second half of the quarter. U.S. Treasury Inflation Protected Securities (TIPS) returned 4.5% for the quarter and were aided by higher inflation expectations (lower TIPS yields) and increased commodity prices. Global fixed income indices outperformed their U.S. counterparts in USD terms with a tailwind from both falling interest rates and a weakening USD. MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill The Market Environment Major Market Index Performance As of March 31, 2016 Quarter Performance -0.4% -3.0% 5.7% 1.3% 1.0% 1.2% 2.2% -1.5% 3.0% 3.1% 4.5% 2.0% 4.0% 0.1% -4.0% -2.0% 1 -Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts - 12.0% S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays US TIPS Barclays MBS Barclays Corp IG 3 -Month T -Bill 0.0% 2.0% 4.0% 6.0% -9.2% -8.3% 1.8% -0.3% 0.5% -4.0% -9.8% 2.0% 2.4% 1.5% 2.4% 0.9% 0.1% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% THE A Hu Source: Investment Metrics BOGDAN Page 2 �`� GROUP. ■ U.S. macroeconomic data fueled domestic equity returns for the 1st quarter. Early on, concerns about U.S. GDP growth, growing initial jobless claims, weakness in U.S. manufacturing, low oil prices, and the potential for a steady pattern of interest rate hikes resulted in considerable downside momentum for U.S. equity indices. However, as the quarter progressed, employment and income data appeared stronger, moving to a post- recession low, and regional manufacturing surveys showed signs of improvement. In addition, oil prices rebounded from a low of $26 /barrel in February to $38 /barrel at the end of March, and, despite signs of rising inflation, the Fed lowered its median projection for the number of interest rate increases in 2016 from four to only two. ■ Domestic equity index performance was largely positive during the 1st quarter. Value stocks outperformed growth stocks across the capitalization spectrum reversing a persistent trend of growth style outperformance. This shift was likely due to investors seeking the relative safety and stability of value stocks given the turbulent start to the year. Mid cap value stocks were the best performers across the value spectrum, returning 3.9% during the period. Small cap value (1.7 %) and large cap value (1.6 %) benchmarks posted similar results but were up less than half of the MidCap Index's performance. Within the growth spectrum, large cap stocks were the best performers (0.7 %), followed by mid cap stocks (0.6 %). The Russell 2000 Growth Index was the largest underperformer, returning -4.7% for the quarter, substantially trailing other indices. ■ Large cap stocks, as represented by the Russell 1000's return of 0.5 %, posted the only positive core index performance over the 1 -year period. However, style bias was mixed. The Russell 1000 Growth Index was the best performer, returning 2.5% for the year. In contrast, the growth indices for both mid (- 4.7%) and small (- 11.8 %) cap stocks posted negative results and underperformed their respective value benchmarks. ■ Despite their underperformance over the 1 -year period, from a valuation perspective, current Price /Earnings ratios (P /E) for value indices appear stretched relative to their long -term (20 -year) averages. The mid cap value index appears most expensive at 122% of its long -term average. In contrast, current P/E valuations for the growth indices fall between 90% and 95% of their historical long -term averages. The Market Environment Domestic Equity Style Index Performance As of March 31, 2016 Quarter Performance - Russell Style Series 3000 Value 1 -Year Performance - Russell Style Series 3000 Value 3000 Index 3000 Index -0.3% 3000 Growth 1000 Value 1000 Value 1000 Index 1000 Index MidCap Value 1000 Growth MidCap Index -4.0% E_ MidCap Value -4.7% 2000 Value MidCap Index 20001ndex -9.8% MidCap Growth - 11.8% 2000 Value 2000 Index 2000 Growth -4.7% _ -6.0% -4.0% -1.5% -2.0% 0.0% 1.6% 1.0% 0.3% 1.6% = 1.2% ] 0.7% 3.9% 2.2% 0.6% 1.7% 2.0% 4.0% 1.3% 0.5 2.5% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% THE A Hu Source: Investment Metrics BOGDAN Page 3 �`� GROUP. 1 -Year Performance - Russell Style Series 3000 Value -2.1% - 3000 Index -0.3% 3000 Growth 1000 Value -1.5% C 1000 Index 1000 Growth MidCap Value -3.4% MidCap Index -4.0% E_ MidCap Growth -4.7% 2000 Value -7.7% 20001ndex -9.8% 2000 Growth - 11.8% 1.7% 2.0% 4.0% 1.3% 0.5 2.5% -14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% THE A Hu Source: Investment Metrics BOGDAN Page 3 �`� GROUP. • Large cap sector performance was generally positive for the 1st quarter with eight of the ten economic sectors within the Russell 1000 Index posting gains. The Health Care and Financials sectors were the only laggards returning -6.1% and -4.3% respectively. Health Care losses were led by the struggling biotech industry as stock prices reacted to increased political discussion surrounding drug price reform. An increased likelihood of low interest rates in the near -term hurt the earnings outlook for Financials. The strongest performing sectors for the quarter were the relatively defensive Utilities (15.7 %), Telecom Services (15.2 %) and Consumer Staples (5.5 %) sectors. These sectors benefitted from their lower perceived risk and higher dividend yields as investors sought shelter from the quarter's early volatility. Over the 1 -year period, six of ten economic sectors in the large cap index had positive performance, with the defensive sectors, largely due to performance in the 1st quarter, posting the strongest returns. On the negative side, the oil price driven Energy sector was the worst performer by a sizable margin returning - 17.9% for the period. Health Care (- 6.4 %), Financials (4.0 %), and Materials ( -5.6 %) were also negative for the 1 -year period. • Small cap sector returns were, by and large, worse than corresponding large cap sector returns. Similar to large cap sectors, small cap sector performance was largely positive for the quarter. However, in contrast to the large cap benchmark's balanced sector results, only the small cap index's two most defensive sectors, Utilities (10.0 %) and Telecom Services (6.1 %), managed to post positive returns over the 1 -year period. Much like the Russell 1000, the Energy sector posted the Russell 2000's weakest 1 -year sector performance, returning - 44.0 %. Health Care (- 20.4 %), Materials (- 19.5 %), Consumer Discretionary (- 12.8 %), and Industrials (- 11.3 %) also posted double -digit losses for the period. • Using the S &P 500 as a proxy, trailing P/E ratios for six GICS sectors were below their 20 -year averages at quarter -end. The Telecom Services and Financials sectors were trading at the largest discount to their long -term average P/E ratios. Conversely, Energy and Utilities sector valuations were the most extended relative to their historical P/E ratios. Consumer Disc (13.6 %) Consumer Staples (9.6 %) Energy (6.3 %) Financials (16.9 %) Health Care (14.3 %) Industrials (10.5 %) Info Technology (20.0 %) Materials (3.0 %) Telecom Services (2.5 %) Utilities (3.2 %) The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2016 Russell 1000 1 ■Quarter 01 -Year -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell 2000 1 ■Quarter 01 -Year Consumer Disc (13.9 %) Consumer Staples (3.5 %) Energy (2.5 %) Financials (26.0 %) Health Care (14.8 %) Industrials (12.4 %) Info Technology (18.1 %) Materials (3.6 %) Telecom Services (0.9 %) Utilities (4.1 %) 2.3% -12.8% 3.2% -8:%. -44.0% 0.3% -1.5% - 17.4% - 20.4% 4.5% - 11.3% -1.6% -3.8% 4.9% -19.5% 6.7% 6.1% 12.0% 10.0% -46.0% -36.0% -26.0% -16.0% -6.0% 4.0% 14.0% THE A Hu Source: Morningstar Direct r BOGDAN Page 4= GROUP. 4.8% 5.5 10.1% 3.6% - 17.9% -4.3% -4.0% -6.1% -6.4% 4.9% 1.6% 1.8% 6.0% 4.7% -5.6% 15.2% 16.9% 15.7% 15.2% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell 2000 1 ■Quarter 01 -Year Consumer Disc (13.9 %) Consumer Staples (3.5 %) Energy (2.5 %) Financials (26.0 %) Health Care (14.8 %) Industrials (12.4 %) Info Technology (18.1 %) Materials (3.6 %) Telecom Services (0.9 %) Utilities (4.1 %) 2.3% -12.8% 3.2% -8:%. -44.0% 0.3% -1.5% - 17.4% - 20.4% 4.5% - 11.3% -1.6% -3.8% 4.9% -19.5% 6.7% 6.1% 12.0% 10.0% -46.0% -36.0% -26.0% -16.0% -6.0% 4.0% 14.0% THE A Hu Source: Morningstar Direct r BOGDAN Page 4= GROUP. Russell 1000 Apple Inc Top r Weighted Weight 3.08% Stocks 1-Qtr Return 4.1% 11-Year Return -10.8% Sector Information Technology Microsoft Corp 2.19% 0.3% 39.5% Information Technology Exxon Mobil Corporation 1.71% 8.2% 1.9% Energy Johnson & Johnson 1.47% 6.1% 10.8% Health Care General Electric Co 1.47% 2.9% 32.4% Industrials Berkshire Hathaway Inc B 1.29% 7.5% -1.7% Financials Facebook Inc A 1.21% 9.0% 38.8% Information Technology AT &T Inc 1.17% 15.4% 26.9% Telecommunication Services Amazon.com Inc 1.11% - 12.2% 59.5% Consumer Discretionary Wells Fargo & Co 1.10% - 10.3% -8.6% Financials Bottom Russell rrr M1 SunEdison Inc r MKOTrISH e Quarter) 1-Year Return - 97.7% Sector Information Technology United States Steel Corp 0.01% 102.5% - 33.2% Materials Cliffs Natural Resources Inc 0.00% 89.9% - 37.6% Materials 3D Systems Corp 0.01% 78.0% - 43.6% Information Technology JC Penney Co Inc 0.02% 66.1% 31.5% Consumer Discretionary SPX Corp 0.00% 61.0% - 28.3% Industrials Freeport- McMoRan Inc 0.06% 52.7% -44.5% Materials Newmont Mining Corp 0.07% 47.9% 23.0% Materials Allegheny Technologies Inc 0.01% 45.6% - 44.2% Materials Urban Outfitters Inc 0.01% 45.5% -27.5% Consumer Discretionary Kate Spade & Co 0.02% 43.6% - 23.6% Consumer Discretionary Bottom Russell rrr M1 SunEdison Inc r Performing Weight 0.00% Stocks (by 1-Qtr Return - 89.4% Quarter) 1-Year Return - 97.7% Sector Information Technology Ultra Petroleum Corp 0.00% - 80.1% -96.8% Energy SandRidge Energy Inc 0.00% - 71.9% -96.8% Energy Peabody Energy Corp 0.00% -69.8% -96.9% Energy Ocwen Financial Corp 0.00% - 64.6% - 70.1% Financials Puma Biotechnology Inc 0.00% -62.5% - 87.6% Health Care Alkermes PLC 0.02% - 56.9% - 43.9% Health Care California Resources Corp 0.00% -55.8% - 86.4% Energy Endo International PLC 0.03% -54.0% - 68.6% Health Care SolarCity Corp 0.01% -51.8% - 52.1% Industrials The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2016 Russell 2000 STERIS PLC Top 10 Weighted Weight 0.37% Stm 1-Qtr 1-Year Return Return -5.3% 2.6% Sector Health Care CubeSmart 0.34% 9.4% 41.5% Financials West Pharmaceutical Services Inc 0.31% 15.4% 16.1% Health Care Treehouse Foods Inc 0.30% 10.6% 2.0% Consumer Staples Vail Resorts Inc 0.30% 5.1% 32.3% Consumer Discretionary Piedmont Natural Gas Co Inc 0.29% 5.5% 66.9% Utilities MarketAxess Holdings Inc 0.29% 12.1% 51.9% Financials Sovran Self Storage Inc 0.28% 10.8% 29.9% Financials Highwoods Properties Inc 0.28% 10.8% 8.7% Financials Casey's General Stores Inc 0.27% -5.7% 26.9% Consumer Staples r e e Vantage Drilling Co 0.00% 551.4% - 94.7% Energy American Eagle Energy Corp 0.00% 345.5% - 97.3% Energy Walter Energy Inc 0.00% 177.7% -95.0% Materials Ultrapetrol Bahamas Ltd 0.00% 157.1% - 81.4% Industrials Coeur Mining Inc 0.05% 126.6% 19.3% Materials Bio -Path Holdings Inc 0.00% 107.2% 43.9% Health Care EnerNOC Inc 0.01% 94.3% - 34.4% Information Technology Cliffs Natural Resources Inc 0.03% 89.9% - 37.6% Materials SunCoke Energy Inc 0.03% 87.3% - 54.1% Materials Nanoviricides Inc 0.00% 85.6% -2.7% Health Care 0 Bottom r Quarter) 1-Qtr 11-Year Sector Russell rrr Weight dmi, Return Return RCS Capital Corp Class A 0.00% -96.5% - 99.9% Financials Horsehead Holding Corp 0.00% - 92.7% -98.8% Materials Eagle Bulk Shipping Inc 0.00% -89.8% - 95.1% Industrials 6D Global Technologies Inc 0.00% - 89.7% -96.2% Information Technology Eleven Biotherapeutics Inc 0.00% - 89.4% -96.4% Health Care Speed Commerce Inc 0.00% - 88.9% - 98.9% Information Technology CHC Group Ltd 0.00% -85.0% - 97.6% Energy Noranda Aluminum Holding Corp 0.00% -82.8% - 99.7% Materials Midstates Petroleum Co Inc 0.00% - 82.4% -95.8% Energy Carbylan Therapeutics Inc 0.00% - 82.2% N/A Health Care �PIN THE /� �7 Source: Morningstar Direct OGDAHN Page 5 `'� GROUP ■ Like their domestic counterparts, the 1st quarter of the year was very volatile for international stocks. The beginning of the quarter was difficult across markets as investors struggled with uncertainty surrounding central bank policies, global economic growth, and commodity prices. As is usual, this uncertainty caused investors to flee risk assets, putting downward pressure on equity prices. Markets began to recover in the latter half of the quarter as the Bank of Japan (BoJ), People's Bank of China (PBoC), and European Central Bank (ECB) were just a few of those announcing new measures aimed at stimulating their economies. Developed markets struggled throughout the quarter while emerging markets managed to reverse their persistent trend of underperformance as commodity prices rebounded and the USD weakened. The weaker USD provided a boost to local currency returns across major international indices. For the 1 -year period, USD performance for each of the international indices we track was negative. Developed markets returned a weak -8.3% for the 1 -year period, but emerging markets fared even worse with a return of - 12.0 %. • Despite relief from the ECB's announcement of additional monetary policy easing, developed markets in Europe were negative for the quarter. Weak GDP growth, below target inflation, and security concerns stemming from the March terrorist attacks in Brussels all impacted returns. Stress was compounded when the U.K. called for a referendum to review the country's continued membership in the European economic bloc. Within the emerging and developed market indices, Greece and Italy were the worst performers posting USD returns of -12.2% and - 11.7 %, respectively, for the quarter. • Japanese equities, the developed market index's largest component, struggled for the quarter posting a return of -6.5% in USD and -12.5% in local currency. Investors weighed ongoing global macroeconomic uncertainty and began to lose faith in the ability of "Abenomics" to lift the country out of its growth malaise. Japanese market returns were also affected by the BoJ's unexpected move to a negative interest rate policy at the end of January, making it the sixth central bank to do so, in an attempt to stimulate economic growth and place upward pressure on inflation. Investors in Chinese markets had an exceptionally difficult start to the year as a new circuit breaking mechanism forced an early market close twice in January. The recent round of market turbulence stemmed from fears of the impending expiration of selling restrictions on major shareholders, which were later extended, and a weakening Chinese yuan. The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2016 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) Quarter Performance I ■USD ❑ Local Currency -0.4% -4.1% -2.0% -5.8% -3.0% -6.5% -2.6% -5.0% -3.8% -9.3% 5.7% 2.7% 12.9% 7.5% 1.9% 0.3% 19.1% 11.8% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 1 -Year Performance I ■USD El Local Currency AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) -1: Emerging Mkt (23) 1 EM EM EA (10) EM Asia (8) -12 EM Latin Amer (5) 14.0% - 10.3% -11.0% -8.3% - 11.2% - 10.7% -8.0% -7.7% -11.5% - 10.6% -9.2% -0.9% 0.8% I L.0 %0 - I U.0 70 -o.0 70 -0.0 70 -4.0 70 -L.0 70 U.0 70 L.0 70 �""N\ 7RRHk Source: MSCI Global Index Monitor (Returns are Net) 1JOGD1 -1111 V Page 6 �`� GROUP. IVISCI-EAFE Consumer Discretionary Sector Weight 13.2% Quarter Return -4.3% 1 -Year Return -10.0% Consumer Staples 12.7% 3.3% 7.3% Energy 4.7% 4.7% - 10.4% Financials 23.8% -9.6% - 16.3% Health Care 11.5% -6.5% -8.0% Industrials 13.3% 1.7% -3.7% Information Technology 5.3% -4.1% -6.5% Materials 6.7% 2.6% - 17.4% Telecommunication Services 5.1% 0.3% 1.3% Utilities Total 3.9% 00 0.4% -0.1% Consumer Discretionary 12.0% -2.6% -10.1% Consumer Staples 11.2% 4.1% 5.2% Energy 6.4% 9.8% - 10.6% Financials 25.8% -5.0% - 14.7% Health Care 8.8% -7.5% -11.3% Industrials 11.5% 2.3% -5.7% Information Technology 8.5% 0.7% -8.0% Materials 6.9% 7.2% - 15.4% Telecommunication Services 5.3% 2.5% -3.60/( Utilities Total 3.6% 100 .0% 2.4% -2.6% ConsumerDiscretionary gwgm- am 9.8% 3.1% - 12.1% Consumer Staples 8.3% 6.3% -5.3% Energy 7.7% 14.9% -7.0% Financials 27.4% 3.4% - 15.7% Health Care 2.7% -0.4% -11.6% Industrials 6.8% 3.1% - 15.3% Information Technology 20.7% 4.9% -10.0% Materials 6.6% 15.4% -7.6% Telecommunication Services 6.9% 6.6% - 15.4% Utilities Total 3.2% 100 9.2% - 10.7% r Netherlands .0% 2.2% 3.4% The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2016 Country Japan Weight 22.5% Weight 16.1% -6.5% -7.1% United Kingdom 19.3% 13.8% -2.3% -8.9% France 10.0% 7.2% 0.1% -4.5% Germany 9.2% 6.6% -2.5% - 11.7% Switzerland 9.1% 6.5% -5.5% -9.4% Australia 7.2% 5.1% 2.1% -10.8% Hong Kong 3.3% 2.4% -0.6% -6.7% Spain 3.2% 2.3% -4.1% -18.6% Netherlands 3.1% 2.2% 3.4% -0.2% Sweden 2.9% 2.1% -0.2% -9.9% Italy 2.2% 1.6% -11.7% -15.4% Denmark 2.0% 1.4% -1.0% 5.5% Belgium 1.5% 1.0% -2.4% 3.2% Singapore 1.4% 1.0% 5.1% - 11.9% Finland 1.0% 0.7% -5.2% -5.6% Israel 0.7% 0.5% - 10.2% -9.0% Norway 0.6% 0.4% 1.7% -15.5% Ireland 0.5% 0.4% -4.2% 7.8% Austria 0.2% 0.1% -0.5% -0.2% New Zealand 0.2% 0.1% 11.6% 6.5% Portugal Total EAFE Countries Canada Total Developed Countries China 0.2% 100.0% 1 0.1% 6.6% 78.2% 5.2% 3.2% 1 11.3% -4.8% -2.9% 1 - 10.2% -18.8% Korea 3.4% 5.1% -5.9% Taiwan 2.7% 7.7% -8.5% India 1.8% -2.5% -13.2% South Africa 1.6% 13.8% -17.8% Brazil 1.4% 28.5% -11.8% Mexico 1.0% 8.5% -5.3% Russia 0.8% 15.8% 1.7% Malaysia 0.8% 13.2% -8.0% Indonesia 0.6% 11.2% -12.5% Thailand 0.5% 16.9% - 12.7% Turkey 0.3% 21.6% -1.6% Philippines 0.3% 7.0% -9.3% Poland 0.3% 13.9% - 12.4% Chile 0.3% 12.9% -6.9% Qatar 0.2% 3.8% - 13.7% United Arab Emirates 0.2% 8.6% -5.9% Colombia 0.1% 22.5% - 11.9% Peru 0.1% 27.0% -7.7% Greece 0.1% - 12.2% -52.0% Hungary 0.1% 17.3% 40.2% Czech Republic 0.0% 5.1% -11.5% Egypt Total Emerging Countries Total ACWIxIJS Countries 0.0% 21.9% 100.0% -5.9% -12.0% THE B A Source: MSCI Global Index Monitor (Returns are Net in USD) 1J O GD1�11 11 V u�T Page 7 �`� GROUP. ■ Due to a steady downward move in interest rates during the 1st quarter, fixed income index performance was positive for the period. Fixed income indices benefitted from Federal Reserve Chair Janet Yellen's dovish comments in February and March, which implied uncertainty underlying the U.S. economic outlook would likely mitigate the pace of future interest rate hikes. This information resulted in a consensus expectation for two rate increases this year versus the prior expectation of four. This rate news, coupled with early quarter volatility in risk assets, fueled investor demand for defensive investments such as U.S. Treasuries. This series of events resulted in yields falling throughout the period, especially at the longer -end of the yield curve. This curve flattening benefited longer duration indices with the 7.3 year duration Barclays U.S. Corporate Investment Grade Index returning a solid 4.0% for the quarter. Over the 1 -year period, lower quality issues struggled, with Baa and high yield indices registering losses of -0.8% and -3.7 %, respectively, as investors preferred the relative safety of high credit quality issues. ■ The Barclays Aggregate benchmark, which is a broad representation of U.S. fixed income markets, posted a return of 3.0% for the quarter. As detailed above, higher duration sectors within the broad Aggregate index outperformed lower duration sectors with investment grade corporates (4.0 %) and Treasury securities (3.2 %) posting the largest gains. Hurt by its relatively low duration, the Barclays U.S. Mortgage Index returned a lower 2.0% for the quarter. While the sector components of the Aggregate benchmark also posted positive returns for the 1 -year period, Treasury and mortgage- backed issues were the strongest performing; each returning 2.4 %. The Barclays U.S. Corporate Investment Grade Index returned 0.9 %, negatively impacted by widening credit spreads throughout most of the period. ■ Due to higher average durations and credit spreads that declined in the second half of the quarter, lower credit quality investment grade securities outperformed higher quality issues during the 1st quarter. A and Baa rated securities returned 3.9% and 4.3 %, respectively, versus a 2.7% return for AAA issues. High yield bonds also had a strong quarter with the Barclays U.S. High Yield Index returning 3.4 %. As noted, high yield spreads rose dramatically in the first half of the quarter causing the index to trade down by as much as 5.0% through early February but quickly changed course as the quarter progressed to end the period lower than where they began 2016. Despite the strong quarter, the Barclays U.S. High Yield Index returned - 3.7% over the 1 -year period. Source: Barclays Capital Live Page 8 The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of March 31, 2016 AAA (4.8) AA (6.1) A (7.4) Baa (7.4) U.S. High Yield (4.2) U.S. Treasury (6.1) U.S. Mortgage (3.1) U.S. Corporate IG (7.3) U.S. TIPS (4.8) Aggregate (5.5) Intermediate Agg (3.7) Global Agg x US (7.7) Multiverse (6.6) Quarter Performance 2.7% 3.3% 3.9% 4.3% 3.4% 3.2% 2.0% 4.0% 4.5% 3.0% 2.3% 8.3% 5.9% 0.0% 2.0% 4.0% AAA (4.8) AA (6.1) A (7.4) Baa (7.4) U.S. High Yield (4.2) U.S. Treasury (6.1) U.S. Mortgage (3.1) U.S. Corporate IG (7.3) U.S. TIPS (4.8) Aggregate (5.5) Intermediate Agg (3.7) Global Agg x US (7.7) Multiverse (6.6) 1 -Year Performance 6.0% 8.0% 10.0% 2.4% 2.4% 2.2% -0.8% -3.7% 2.4% 2.4% 0.9% 1.5% 20% 22% 6.7% 4.4% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% THE [� BOGDAHN ``� GROUP. ■ U.S. TIPS finished the 1st quarter with a solid 4.5% return as inflation expectations rose as the USD weakened and commodity prices started to rebound. TIPS returns for the 1 -year period, while positive, were a more modest 1.5 %. ■ In USD terms, international fixed income indices posted the largest gains for the quarter and 1 -year period. Despite the relatively low interest rates in international markets, the Barclays Global Aggregate ex U.S. benchmark returned 8.3% for the quarter. The index benefitted from its higher duration, additional monetary policy easing and the weakening USD. Global bonds were also strong over the 1 -year period, posting a return of 6.7 %. ■ Many of the drivers of the index performance detailed in the bar graphs on the previous page is visible on a time series basis in the line graphs to the right. The 1-Year Trailing Market Rates' graph illustrates that the 10 -year Treasury (green line) fell over the quarter, providing a boost to bond performance. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread), which quantifies the additional yield premium that investors demand to purchase and hold non - Treasury issues. When spreads widen (tighten), it is equivalent to an interest rate increase (decrease) on corporate bonds. After falling below 2.0% early in 2015, this spread rose throughout the remainder of the calendar year. There was considerable movement in this spread from the start of 2016, as it widened to near term highs, before falling through the second half of the quarter, ending the period only slightly lower than it began. The interest rate paid on 10 -year TIPS (orange line) has fallen since late last year as higher inflation expectations have increased demand for these securities. The bottom graph provides a snapshot of the U.S. Treasury yield curve at each of the last four calendar quarters. While rates stayed relatively flat at the short -end of the curve, maturities beyond 3 -years saw yields fall to their lowest quarter -end levels in a year. ■ The Fed has stated future rate increases would be implemented at a measured pace and with ongoing assessment of current economic data. Geopolitical events and stimulus programs in other countries should keep demand for U.S. Treasury issues elevated and put downward pressure on how high domestic rates will rise in the short -term. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2016 1 -Year Trailing Market Rates 0.00 4- 1 ITITI r f Mar -15 Apr -15 May -15 Jun -15 Jul -15 Aug -15 Sep -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr �ps� THE /� Source: US Department of Treasury B FRED (Federal Reserve of St. Louis) 1J O GDl"1H N Page 9 `'� GROUP Village of North Palm Beach Fire & Police Compliance Checklist As of March 31, 2016 Total Fund Compliance: Yes No NIA The total plan return equaled or exceeded the total plan benchmark over the trailing three year period. • The total plan return equaled or exceeded the total plan benchmark over the trailing five year period. • The three year return ranks in the top 40% of its peers. • The five year return ranks in the top 40% of its peers. • The three year standard deviation is less than the total fund index standard deviation. • Equity Compliance: Yes No NIA The return equaled or exceeded the benchmark over the trailing three year period. • The return equaled or exceeded the benchmark over the trailing five year period. • The five year return ranks in the top 40% of its peers. • The amount invested in any one issuing company is less than 5% of the Fund's total assets. • The aggregate investment in any one company is less than or equal to 5% of the outstanding shares of the company. • The amount invested in common stocks and convertible bonds is less than 65% of the total fund. • The three year standard deviation is less than the equity index standard deviation. • Fixed Income Compliance: Yes No NIA The fixed income return equaled or exceed the benchmark over the trailing three year period. • The fixed income return equaled or exceed the benchmark over the trailing five year period. • The three year return ranks in the top 40% of its peers. • The five year return ranks in the top 40% of its peers. • All fixed income securities ranked at least BBB by Standard & Poors or Baa by Moody's. • The three year standard deviation is less than the index standard deviation. • THE BOGDAHN Page 10 ``� GROUP. Schedule of Investable Assets $24,000,009 $21,818,190 $19,636,371 $17,454,552 — $15,272,733 — $13,090,914 — a� m $10,909,095 Y i R $8,727,276 $6,545,457 $4,363,638 $2,181,819 $0 Schedule of Investable Assets Total Fund Composite Since Inception Ending March 31, 2016 $18,257,933 $17,805,911 0,460 ($2,181,819) , I I I I L 9/95 9/96 9/97 9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 3/16 Total Fund Composite — Total Fund Policy Index Net Cash Flow Schedule of Investable Assets Beginning Ending Periods Ending Market Value Contributions Withdrawals Gain /Loss Market Value %Return $ $ $ Inception 3,179,586 6,498,848 2,896,974 11,476,473 18,257,933 6.67 THE r BOGDAHN Page 11 �`� GROUP. Asset Allocation Total Fund As of March 31, 2016 Asset Allocation Attributes 4,331,702 34.75 541,210 4.34 12,463,946 Domestic Equity International Equity Domestic Fixed Income Real Estate Cash Equivalent Total Fund 2,566,730 14.06 Highland International - - 1,339,611 94.61 - - 76,283 Highland Balanced 7,591,035 60.90 4,331,702 34.75 541,210 4.34 12,463,946 68.27 Highland LCG 2,186,451 85.18 - - 380,279 14.82 2,566,730 14.06 Highland International - - 1,339,611 94.61 - - 76,283 5.39 1,415,893 7.75 American Realty - - 1,779,000 100.00 - - 1,779,000 9.74 R &D Cash - - - - - - 32,364 100.00 32,364 0.18 Total Fund Composite 9,777,485 53.55 1,339,611 7.34 4,331,702 23.73 1,779,000 9.74 1,030,136 5.64 18,257,933 100.00 THE BOGDAHN Page 12 ``� GROUP. March 31, 2016 : $18,257,933 Asset Allocation by Segment Asset Allocation by Segment Total Fund Composite As of March 31, 2016 Segments Market Value Allocation • Domestic Equity 9,777,485 53.6 International Equity 1,339,611 7.3 Domestic Fixed Income 4,331,702 23.7 Real Estate 1,779,000 9.7 • Cash Equivalent 1,030,136 5.6 Page 13 THE [� BOGDAHN `'� GROUP. Asset Allocation By Manager as of March 31, 2016 : $18,257,933 Allocation Market Value Allocation • Highland Balanced 12,463,946 68.3 Highland LCG 2,566,730 14.1 American Realty 1,779,000 9.7 Highland International 1,415,893 7.8 • R &D Cash 32,364 0.2 Page 14 Asset Allocation Summary Total Fund Composite As of March 31. 2016 THE [� BOGDAHN `'� GROUP. Asset Allocation & Performance Total Fund Composite (Gross) As of March 31, 2016 Asset Allocation & Performance Market Value Allocation % QTR FYTD Performance( %) 1 YR 3 YR 5 YR Total Fund Composite 18,257,933 100.0 1.17 (40) 4.71 (18) -0.24 (19) 7.08 (19) 6.83 (35) Total Fund Policy Index 1.66 (15) 5.28 (6) 0.71 (5) 6.95 (21) 7.43 (16) All Public Plans -Total Fund Median 0.95 3.84 -1.53 6.14 6.41 Total Equity Composite 11,117,096 60.9 Mj 0.3- 5.87 -2.89 9.53 8.49 Total Equity Policy Index 0.60 6.91 -0.52 9.72 9.55 Highland Equity (LCV) 7,591,035 41.6 1.41 (37) 7.32 (33) -1.29 (37) 10.93 (34) 9.57 (69) S &P 500 Index 1.35 (38) 8.49 (22) 1.78 (14) 11.82 (17) 11.58 (21) IM U.S. Large Cap Value Equity (SA +CF) Median 0.63 5.98 -2.44 9.90 10.25 Highland LCG 2,566,730 14.1 -1.63 (51) 2.65 (82) -3.83 (84) 10.29 (87) 9.14 (87) Russell 1000 Growth Index 0.74 (21) 8.11 (13) 2.52 (20) 13.61 (37) 12.38 (32) IM U.S. Large Cap Growth Equity (SA +CF) Median -1.61 5.21 -0.29 12.76 11.45 Highland International 1,415,893 7.8 -2.56 (72) 2.76 (63) -8.82 (67) 1.19 (67) 2.27 (60) BONY ADRIndex -3.09 (81) -0.69 (93) -11.48 (86) -0.47 (75) -0.39 (80) IM International Equity (SA +CF) Median -0.67 3.70 -6.80 2.98 3.09 Total Fixed Income 0 Highland Fixed Income 4,331,702 23.7 3.43 (5) 3.17 (4) 2.71 (7) 2.26 (96) 3.89 (79) Fixed Income Policy 3.03 (52) 2.44 (65) 1.96 (60) 2.50 (76) 3.78 (87) IM U.S. Broad Market Core Fixed Income (SA +CF) Median 3.04 2.53 2.06 2.71 4.14 Total Real Estate American Realty 1,779,000 9.7 2.63 (47) 5.76 (51) 13.33 (55) 13.15 (70) N/A NCREIF Property Index 2.21 (54) 5.19 (88) 11.84 (87) 11.91 (89) 11.93 (89) IM U.S. Private Real Estate (SA +CF) Median 2.41 5.76 13.40 13.79 13.74 R &D Cash 32,364 0.2 THE BOGDAHN Page 15 `'� GROUP Asset Allocation & Performance Total Fund Composite (Net) As of March 31, 2016 Asset Allocation & Performance Market Value Allocation % QTR FYTD Performance( %) 1 YR 3 YR 5 YR Total Fund Composite 18,257,933 100.0 1.15 4.55 -0.53 6.75 6.44 Total Fund Policy Index 1.66 5.28 0.71 6.95 7.43 Total Equity Composite 11,117,096 60.9 0.32 5.87 -2.89 9.53 T-� Total Equity Policy Index 0.60 6.91 -0.52 9.72 9.55 Highland Equity (LCV) 7,591,035 41.6 1.41 7.32 -1.29 10.93 9.57 S &P 500 Index 1.35 8.49 1.78 11.82 11.58 Highland LCG 2,566,730 14.1 -1.63 2.65 -3.83 10.29 9.14 Russell 1000 Growth Index 0.74 8.11 2.52 13.61 12.38 Highland International 1,415,893 7.8 -2.56 2.76 -8.82 1.19 2.27 BONY ADR Index -3.09 -0.69 -11.48 -0.47 -0.39 Total Fixed Income Highland Fixed Income 4,331,702 23.7 3.43 3.17 2.71 2.26 3.89 Fixed Income Policy 3.03 2.44 1.96 2.50 3.78 Total Real Estate American Realty 1,779,000 9.7 2.37 5.21 12.07 11.95 N/A NCREIF Property Index 2.21 5.19 11.84 11.91 11.93 R &D Cash 32,364 0.2 THE BOGDAHN Page 16 `'� GROUP Asset Allocation & Performance Total Fund Composite (Gross) As of March 31, 2016 Asset Allocation & Performance R &D Cash Page 17 32,364 0.2 rs� THE [� BOGDAHN `'� GROUP Allocation Performance( %) Market Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Value % FYTD To To To To To To To To To To $ Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Total Fund Composite 18,257,933 100.0 4.71 (18) 1.23 (13) 10.99 (32) 14.46 (17) 16.33 (76) -1.93(90) 8.02 (91) 0.11(72) -10.55(13) 13.43 (65) 7.34 (74) Total Fund Policy Index 5.28 (6) -0.51(50) 12.06 (10) 10.45 (82) 18.49 (36) 1.60(21) 9.17 (72) 1.71 (49) - 13.17(53) 11.88 (87) 7.79 (64) All Public Plans -Total Fund Median 3.84 -0.53 10.18 12.51 17.96 0.15 9.90 1.59 -12.92 14.04 8.41 Total Equity Composite 11,117,096 60.9 5.87 -0.65 15.06 0 27.02 + 27.49 -8.06 djjjlllllllllll� -6.59 -18.81 18.73 10.39 Total Equity Policy Index 6.91 -3.01 17.59 19.14 27.67 -1.26 8.99 -5.34 -23.36 16.44 10.79 Highland Equity (LCV) 7,591,035 41.6 7.32 (33) 0.20(18) 17.14 (65) 27.52 (22) 28.99 (45) - 8.16(97) 8.27 (62) - 8.25(69) - 18.69(37) 18.73 (23) 10.39 (77) S &P 500 Index 8.49 (22) -0.61(25) 19.73 (31) 19.34 (81) 30.20 (31) 1.14 (29) 10.16 (43) -6.91(57) -21.98(60) 16.44 (46) 10.79 (71) IM U.S. Large Cap Value Equity (SA +CF) Median 5.98 -3.32 18.25 23.88 28.33 -0.98 9.32 -5.94 -20.60 16.03 12.63 Highland LCG 2,566,730 14.1 2.65 (82) 4.00(45) 15.51 (77) 26.14 (13) 26.31 (65) -6.01(97) N/A N/A N/A N/A N/A Russell 1000 Growth Index 8.11 (13) 3.17(56) 19.15 (39) 19.27 (65) 29.19 (39) 3.78(30) 12.65 (36) - 1.85(37) - 20.88(54) 19.35 (56) 6.04 (59) IM U.S. Large Cap Growth Equity (SA +CF) Median 5.21 3.68 18.12 20.31 27.62 1.37 11.31 -3.03 -20.34 20.19 6.82 Highland International 1,415,893 7.8 2.76 (63) - 9.78(59) 3.88 (71) 20.21 (51) 16.79 (55) - 5.84(25) 2.50 (87) 10.39(40) N/A N/A N/A BONY ADR Index -0.69 (93) - 14.49(76) 7.32 (33) 17.66 (59) 15.33 (65) - 12.68(71) 3.02 (84) 2.19(73) - 28.23(36) 30.44 (47) 17.14 (77) IM International Equity (SA +CF) Median 3.70 -8.05 5.78 20.34 17.29 -9.61 9.61 6.90 -30.34 29.60 20.13 Total Fixed Income Highland Fixed Income 4,331,702 23.7 3.17 (4) 2.32(85) 3.81 (88) -2.59(99) 5.87 (77) 5.93(14) 7.67 (94) 11.45(68) 2.12(55) 4.87 (79) 2.73 (99) Fixed Income Policy 2.44 (65) 2.94(59) 3.96 (80) -1.68(80) 5.16 (91) 5.26(49) 8.16 (87) 10.56(82) 3.75(30) 5.08 (59) 3.33 (96) IM U.S. Broad Market Core Fixed Income (SA +CF) Median 2.53 3.02 4.47 -1.27 6.59 5.25 9.20 12.28 2.55 5.15 3.86 Total Real Estate American Realty 1,779,000 9.7 5.76 (51) 13.99(73) 12.42 (72) N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Property Index 5.19 (88) 13.48(77) 11.26 (90) 11.00 (83) 11.00 (75) 16.10(73) 5.84 (51) - 22.09(10) 5.27(45) 17.31 (65) 17.62 (56) IM U.S. Private Real Estate (SA +CF) Median 5.76 16.17 13.05 13.35 12.90 16.96 6.09 -35.27 4.88 18.53 18.27 R &D Cash Page 17 32,364 0.2 rs� THE [� BOGDAHN `'� GROUP Asset Allocation & Performance Total Fund Composite (Net) As of March 31, 2016 Asset Allocation & Performance Allocation Performance( %) Market Oct -2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Value % FYTD To To To To To To To To To To $ Sep -2015 Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Total Fund Composite 18,257,933 100.0 4.55 1.04 10.54 13.99 15.82 -2.40 7.46 -0.49 -11.00 12.85 6.85 Total Fund Policy Index 5.28 -0.51 12.06 10.45 18.49 1.60 9.17 1.71 -13.17 11.88 7.79 Total Equity Composite 11,117,096 60.9 5.87 -0.65 15.06 27.02 27.49 -8.06 8.72 -6.59 -18.81 18.73 10.39 Total Equity Policy Index 6.91 -3.01 17.59 19.14 27.67 -1.26 8.99 -5.34 -23.36 16.44 10.79 Highland Equity (LCV) 7,591,035 41.6 7.32 0.20 17.14 27.52 28.99 -8.16 8.27 -8.25 -18.69 18.73 10.39 S &P 500 Index 8.49 -0.61 19.73 19.34 30.20 1.14 10.16 -6.91 -21.98 16.44 10.79 Highland LCG 2,566,730 14.1 2.65 4.00 15.51 26.14 26.31 -6.01 N/A N/A N/A N/A N/A Russell 1000 Growth Index 8.11 3.17 19.15 19.27 29.19 3.78 12.65 -1.85 -20.88 19.35 6.04 Highland International 1,415,893 7.8 2.76 -9.78 3.88 20.21 16.79 -5.84 2.50 10.39 N/A N/A N/A BONY ADR Index -0.69 -14.49 7.32 17.66 15.33 -12.68 3.02 2.19 -28.23 30.44 17.14 Total Fixed Income Highland Fixed Income 4,331,702 23.7 3.17 2.32 3.81 -2.59 5.87 5.93 7.67 11.45 2.12 4.87 2.73 Fixed Income Policy 2.44 2.94 3.96 -1.68 5.16 5.26 8.16 10.56 3.75 5.08 3.33 Total Real Estate American Realty 1,779,000 9.7 5.21 12.74 11.30 N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Property Index 5.19 13.48 11.26 11.00 11.00 16.10 5.84 -22.09 5.27 17.31 17.62 R &D Cash 32,364 0.2 THE BOGDAHN Page 18 `'� GROUP Historical Rolling Performance Total Fund Composite As of March 31, 2016 Historical Rolling Performance Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 19 THE [� BOGDAHN ``� GROUP. QTR 1 YR 3 YR 5 YR Incepti 03/31/2016 1.17 -0.24 7.08 6.83 7.12 12/31/2015 3.49 1.20 9.09 7.50 7.15 09/30/2015 -4.52 1.23 8.74 7.97 7.06 06/30/2015 -0.21 5.47 12.01 10.38 7.40 03/31/2015 2.63 9.02 10.95 9.16 7.51 12/31/2014 3.52 7.88 12.61 9.43 7.47 09/30/2014 -0.52 10.99 13.90 9.38 7.38 06/30/2014 3.15 15.89 9.92 11.85 7.51 03/31/2014 1.56 12.90 8.56 13.25 7.43 12/31/2013 6.50 18.91 9.55 11.46 7.45 09/30/2013 3.87 14.46 9.30 7.14 7.18 06/30/2013 0.49 14.96 10.26 5.24 7.05 03/31/2013 6.97 10.97 7.99 4.82 7.13 12/31/2012 2.51 11.32 6.95 2.61 6.82 09/30/2012 4.33 16.33 7.21 1.99 6.76 06/30/2012 -3.00 -0.32 9.52 1.72 6.60 03/31/2012 7.31 2.13 14.14 3.24 6.90 12/31/2011 7.12 -0.68 9.12 1.96 6.55 09/30/2011 -10.60 -1.93 1.98 1.48 6.19 06/30/2011 -0.62 16.98 4.05 4.60 7.05 03/31/2011 4.36 11.13 3.74 4.43 7.21 12/31/2010 5.77 10.65 0.95 4.18 7.04 09/30/2010 6.64 8.02 -1.10 3.33 6.76 06/30/2010 -5.59 12.66 -2.25 2.42 6.41 03/31/2010 3.91 31.01 1.09 4.09 6.95 12/31/2009 3.25 18.23 0.09 3.03 6.79 09/30/2009 11.23 0.11 0.52 3.57 6.67 06/30/2009 9.78 -14.54 -1.70 1.21 5.97 03/31/2009 -6.22 -23.33 -5.16 -0.64 5.35 12/31/2008 -12.58 -21.37 -2.10 1.06 5.97 09/30/2008 -5.04 -10.55 2.89 5.32 7.19 06/30/2008 -1.51 -3.00 5.38 6.83 7.77 03/31/2008 -3.83 2.85 6.75 9.57 8.07 12/31/2007 -0.55 7.85 7.69 9.89 8.58 09/30/2007 2.98 13.43 10.00 11.11 8.82 06/30/2007 4.43 14.58 8.61 8.59 8.74 03/31/2007 0.84 8.16 7.08 6.11 8.53 12/31/2006 4.60 10.64 7.52 6.11 8.65 09/30/2006 4.02 7.34 8.50 6.80 8.41 06/30/2006 -1.42 5.30 7.78 4.45 8.22 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 19 THE [� BOGDAHN ``� GROUP. Historical Rolling Performance Total Fund Policy Index As of March 31, 2016 Historical Rolling Performance Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 20 THE [� BOGDAHN ``� GROUP. QTR 1 YR 3 YR 5 YR Incepti 03/31/2016 1.66 0.71 6.95 7.43 6.94 12/31/2015 3.56 0.53 8.23 7.81 6.94 09/30/2015 -3.98 -0.51 7.19 8.19 6.85 06/30/2015 -0.37 3.89 10.22 10.87 7.16 03/31/2015 1.48 8.36 9.91 9.58 7.27 12/31/2014 2.49 8.61 11.97 10.01 7.29 09/30/2014 0.26 12.06 13.62 10.22 7.25 06/30/2014 3.91 16.15 10.49 12.53 7.33 03/31/2014 1.71 12.10 9.45 14.06 7.21 12/31/2013 5.75 16.11 10.08 12.12 7.21 09/30/2013 3.92 10.45 9.97 8.11 6.99 06/30/2013 0.29 10.95 11.56 5.86 6.86 03/31/2013 5.34 9.31 9.16 5.47 6.94 12/31/2012 0.60 11.34 8.52 3.31 6.72 09/30/2012 4.39 18.49 9.54 3.03 6.79 06/30/2012 -1.19 4.68 11.87 2.64 6.62 03/31/2012 7.29 6.99 16.36 3.61 6.80 12/31/2011 7.07 3.19 11.08 2.36 6.44 09/30/2011 -7.78 1.60 4.10 1.85 6.09 06/30/2011 0.99 19.56 4.60 4.52 6.74 03/31/2011 3.48 11.23 3.72 4.13 6.79 12/31/2010 5.42 11.23 0.80 3.85 6.66 09/30/2010 8.51 9.17 -1.21 3.06 6.40 06/30/2010 -6.05 11.87 -3.08 1.75 5.92 03/31/2010 3.49 32.38 0.11 3.48 6.49 12/31/2009 3.47 19.40 -0.70 2.45 6.35 09/30/2009 11.19 1.71 -0.40 2.92 6.20 06/30/2009 11.18 -14.43 -2.29 0.82 5.50 03/31/2009 -6.65 -24.22 -5.97 -1.35 4.78 12/31/2008 -11.86 -22.88 -3.12 0.46 5.42 09/30/2008 -6.45 -13.17 1.55 4.48 6.56 06/30/2008 -1.55 -4.91 4.45 6.19 7.25 03/31/2008 -5.00 0.03 5.76 8.68 7.53 12/31/2007 -0.76 6.33 7.03 9.53 8.15 09/30/2007 2.45 11.88 9.34 10.97 8.39 06/30/2007 3.56 14.62 8.57 8.50 8.35 03/31/2007 0.99 9.68 7.22 6.25 8.21 12/31/2006 4.41 10.88 7.67 6.04 8.31 09/30/2006 4.96 7.79 8.62 6.45 8.08 06/30/2006 -0.91 4.53 7.39 3.86 7.79 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Page 20 THE [� BOGDAHN ``� GROUP. Strategy Review Total Fund Composite I Total Fund Policy Index As of March 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market Up Ma et Down Return Standard Sharpe Market Up Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 7.08 5.36 1.30 103.29 9.00 108.59 3.00 Investment 6.83 8.50 0.82 105.43 14.00 137.52 6.00 Index 6.95 4.86 1.40 100.00 10.00 100.00 2.00 Index 7.43 7.09 1.05 100.00 16.00 100.00 4.00 Risk and Return 3 Years 7.2 7.1 E v K 7.0 Risk and Return 5 Years 7.6 i 7.4 ^ 7.2 c v � 7.0 6.8 6.9 ' 6.6 ' 4.7 4.8 4.9 5.0 5.1 5.2 5.3 5.4 5.5 6.6 6.8 7.0 7.2 7.4 7.6 7.8 8.0 8.2 8.4 8.6 8.8 Risk (Standard Deviation %) Risk (Standard Deviation %) 0 Investment O Index 0 Investment O Index 3 Year Rolling Percentile Rank All Public Plans -Total Fund 5 Year Rolling Percentile Rank All Public Plans -Total Fund 0.0 0.0 25.0 25.0 ���•� ~�� •����� 4 000*4% ` 50.0 �� ��,.•��,��� ,�� 50.o �`•'i��, ,�� �� ^�"�,�•�� E ..d 75.0 75.0 100.0 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 5 -25 25- Median Median -75 75.95 5.25 25- Median Median -75 75 -95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 20 5 (25 %) 3 (15 %) 4 (20 %) 8 (40 %) Investment 20 0 (0 %) 3 (15 %) 13 (65 %) 4 (20 %) Index 20 1 (5 %) 12 (60 %) 7 (35 %) 0 (0 %) Index 20 1 (5%) 13 (65 %) 6 (30 %) 0 (0 %) PIN THE BOGDAHN Page 21 `'� GROUP Plan Sponsor Peer Group Analysis vs. All Public Plans -Total Fund 10.0 8.0 O • 00 4.0 E ° 2.0 0.0 O -2.0 -4.0 -6.0 QTR FYTD 1 YR 2 YR Strategy Review Total Fund Composite I Total Fund Policy Index As of March 31, 2016 • Investment 1.17 (40) 4.71 (18) Plan Sponsor Peer Group Analysis vs. All Public Plans -Total Fund 7.08 (19) 6.83 (35) • nves men ( ) 26.0 ( ) ( ) • Index 1.66 (15) 5.28 (6) 0.71 (5) 4.47 (7) 6.95 (21) 7.43 (16) • Index 12.06 (10) 23.0 1.60 (21) 9.17 (72) Median 0.95 3.84 -1.53 2.86 6.14 6.41 O O O 20.0 0.15 9.90 Comparative Performance O 1 Qtr 1 Qtr 1 Qtr 1 Qtr 17.0 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 O Jun -2015 Mar -2015 Dec -2014 Sep -2014 O 14.0 O 11.0 E O O 3 O 8.0 I O ' 5.0 2.0 O -1.0 I O -4.0 -7.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending 3 YR 5 YR t t Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 10 99 32 14 46 17 16 33 76 1 93 90 8 02 91 • Investment 1.17 (40) 4.71 (18) -0.24 (19) 4.29 (10) 7.08 (19) 6.83 (35) • nves men ( ) ( ) ( ) ( ) ( ) • Index 1.66 (15) 5.28 (6) 0.71 (5) 4.47 (7) 6.95 (21) 7.43 (16) • Index 12.06 (10) 10.45 (82) 18.49 (36) 1.60 (21) 9.17 (72) Median 0.95 3.84 -1.53 2.86 6.14 6.41 Median 10.18 12.51 17.96 0.15 9.90 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Investment 3.49 (18) -4.52 (30) -0.21 (57) 2.63 (36) 3.52 (8) -0.52 (17) Index 3.56 (15) -3.98 (14) -0.37 (68) 1.48 (95) 2.49 (39) 0.26 (4) Median 2.85 -5.03 -0.13 2.43 2.27 -1.14 THE BOGDAHN Page 22 `'� GROUP Historical Statistics 3 Years Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Strategy Review Highland LCG I Russell 1000 Growth Index As of March 31, 2016 Historical Statistics 5 Years Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Investment 10.29 9.29 1.11 85.56 9.00 143.85 3.00 Investment 9.14 15.24 0.65 92.66 14.00 127.31 6.00 Index 13.61 8.08 1.63 100.00 11.00 100.00 1.00 Index 12.38 12.47 1.01 100.00 16.00 100.00 4.00 Risk and Return 3 Years 14.4 13.6 12.8 12.0 E V 11.2 e: 10.4 • 9.6 8.8 7.8 8.0 8.2 8.4 8.6 8.8 9.0 9.2 9.4 9.6 Risk (Standard Deviation %) 0 Investment 0 Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA +CF) 0.0 25.0 _ 50.0 h s� E VD 75.0 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Risk and Return 5 Years 13.6 12.8 12.0 _ 11.2 c v 10.4 K 9.6 8.8 8.0 12.0 12.4 12.8 13.2 13.6 14.0 14.4 14.8 15.2 15.6 16.0 Risk (Standard Deviation %) 0 Investment 0 Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (SA +CF) 0.0 m 25.0 50.0 a E VD 75.0 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Investment 14 0 (0 %) 4 (29 %) 5 (36 %) 5 (36 %) Investment 6 0 (0 %) 0 (0 %) 1 (17 %) 5 (83 %) Index 20 0 (0 %) 17 (85 %) 3 (15 %) 0 (0 %) Index 20 0 (0 %) 20 (100 %) 0 (0 %) 0 (0 %) THE BOGDAHN Page 23 `'� GROUP Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA +CF) 20.0 16.0 O 12.0 O O 03 8.0 O E 4.0 0.0 -4.0 -8.0 -12.0 QTR FYTD 1 YR 3 YR 5 YR • Investment -1.63 (51) 2.65 (82) -3.83 (84) 10.29 (87) 9.14 (87) • Index 0.74 (21) 8.11 (13) 2.52 (20) 13.61 (37) 12.38 (32) Median -1.61 5.21 -0.29 12.76 11.45 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Strategy Review Highland LCG I Russell 1000 Growth Index As of March 31, 2016 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA +CF) 44.0 38.0 32.0 O 26.0 O O 20.0 O O O ' 14.0 of O 8.0 O 2.0 -4.0 I O -10.0 -16.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Investment 15.51 (77) 26.14 (13) 26.31 (65) -6.01 (97) N/A • Index 19.15 (39) 19.27 (65) 29.19 (39) 3.78 (30) 12.65 (36) Median 18.12 20.31 27.62 1.37 11.31 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Investment 4.35 (90) -7.61 (81) 1.41 (30) 5.78 (13) 4.94 (56) -0.56 (87) Index 7.32 (47) -5.29 (34) 0.12 (66) 3.84 (52) 4.78 (59) 1.49 (41) Median 7.05 -5.91 0.63 3.93 5.13 1.19 THE BOGDAHN Page 24 `'� GROUP Historical Statistics 3 Years Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Strategy Review Highland International I BONY ADR Index As of March 31, 2016 Historical Statistics 5 Years Return Standard Sharpe Market Up Market Down Deviation Ratio Capture Quarters Capture Quarters Investment 1.19 10.69 0.16 95.00 6.00 78.36 6.00 Investment 2.27 13.79 0.23 103.73 11.00 82.31 9.00 Index -0.47 11.74 0.01 100.00 7.00 100.00 5.00 Index -0.39 15.01 0.05 100.00 13.00 100.00 7.00 Risk and Return 3 Years 1.6 1.2 • 0.8 0.4 E V 0.0 K -0.4 -0.8 10.4 10.6 10.8 11.0 11.2 11.4 11.6 11.8 12.0 Risk (Standard Deviation %) Investment 0 Index 3 Year Rolling Percentile Rank IM International Equity (SA +CF) 0.0 25.0 v c v 50.0 a 75.0 �.�� �.•� �. 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Risk and Return 5 Years 3.0 2.4 • 1.8 _ 1.2 c V 0.6 e: 0.0 -0.6 -1.2 13.4 13.6 13.8 14.0 14.2 14.4 14.6 14.8 15.0 15.2 15.4 Risk (Standard Deviation %) 0 Investment 0 Index 5 Year Rolling Percentile Rank IM International Equity (SA +CF) 0.0 25.0 v c v 50.0 a E v 75.0 r�� .�•��� 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Investment 20 1 (5 %) 4 (20 %) 15 (75 %) 0 (0 %) Investment 13 2 (15 %) 1 (8%) 10 (77 %) 0 (0 %) Index 20 0 (0 %) 0 (0 %) 12 (60 %) 8 (40 %) Index 20 0 (0 %) 0 (0 %) 5 (25 %) 15 (75 %) THE BOGDAHN Page 25 �`� GROUP. Peer Group Analysis - IM International Equity (SA +CF) 16.0 12.0 8.0 4.0 0.0 c -4.0 -8.0 -12.0 -16.0 -20.0 QTR FYTD • Investment -2.56 (72) • Index -3.09 (81) Median -0.67 Comparative Performance 1 Qtr Ending Dec -2015 1 YR 3 YR 5 YR 2.76 (63) -8.82 (67) 1.19 (67) 2.27 (60) -0.69 (93) -11.48 (86) -0.47 (75) -0.39 (80) 3.70 -6.80 2.98 3.09 1 Qtr 1 Qtr Ending Ending Sep -2015 Jun -2015 Strategy Review Highland International I BONY ADR Index As of March 31, 2016 Peer Group Analysis - IM International Equity (SA +CF) 0.34 (74) 5.12 (35) -3.27 (55) -3.50 (32) Index 2.47 (72) -12.19 (61) 52.0 Median 4.30 -10.78 1.45 4.24 -2.97 -4.79 THE Page 26 44.0 36.0 28.0 20.0 0 0 0 0 = 12.0 d 0 � 4.0 -4.0 0 -12.0 0 -20.0 I -28.0 -36.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters Ending Ending Ending Ending Ending Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Investment 3.88 (71) 20.21 (51) 16.79 (55) -5.84 (25) 2.50 (87) • Index 7.32 (33) 17.66 (59) 15.33 (65) -12.68 (71) 3.02 (84) Median 5.78 20.34 17.29 -9.61 9.61 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Investment 5.47 (32) -11.57 (56) 0.34 (74) 5.12 (35) -3.27 (55) -3.50 (32) Index 2.47 (72) -12.19 (61) 1.52 (49) 2.69 (72) -6.59 (94) -3.74 (37) Median 4.30 -10.78 1.45 4.24 -2.97 -4.79 THE Page 26 BOGDAHN `'� GROUP Strategy Review American Realty I NCREIF Property Index As of March 31, 2016 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market Up Ma et Down Return Standard Sharpe Market Up Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 13.15 1.27 9.80 109.96 12.00 N/A N/A Investment N/A N/A N/A N/A N/A N/A N/A Index 11.91 0.67 16.53 100.00 12.00 N/A N/A Index 11.93 0.81 13.93 100.00 20.00 N/A N/A Risk and Return 3 Years 13.5 13.2 • 12.9 12.6 E v 12.3 K 12.0 11.7 11.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 Risk (Standard Deviation %) 0 Investment 0 Index 3 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA +CF) 0.0 zs.o v ♦ 50.0 ♦� a ♦♦ 75.0 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Risk and Return 5 Years 12.0 c v K 11.9 ' 0.8 0.9 Risk (Standard Deviation %) 0 Investment 0 Index 5 Year Rolling Percentile Rank IM U.S. Private Real Estate (SA +CF) 0.0 25.0 v� E 50.0 a v � 75.0 ♦ 100.0 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/153/16 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count Investment 1 0 (0 %) 0 (0 %) 1 (100 %) 0 (0 %) Investment 0 0 0 0 0 Index 20 4 (20 %) 1 (5 %) 1 (5%) 14 (70 %) Index 20 10 (50 %) 1 (5%) 2 (10 %) 7 (35 %) THE BOGDAHN Page 27 �`� GROUP. Strategy Review American Realty I NCREIF Property Index As of March 31, 2016 Peer Group Analysis - IM U.S. Private Real Estate (SA +CF) Peer Group Analysis - IM U.S. Private Real Estate (SA +CF) 23.0 70.0 20.0 60.0 50.0 17.0 40.0 14.0 30.0 11.0 L L 7 � 20.0 O • 8.0 10.0 O O � 5.0 0.0 � 2.0 -10.0 -20.0 -1.0 -30.0 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters -4.0 Ending Ending Ending Ending Ending QTR FYTD 1 YR 3 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 • Investment 2.63 (47) 5.76 (51) 13.33 (55) 13.15 (70) N/A • Investment 12.42 (72) N/A N/A N/A N/A O Index 2.21 (54) 5.19 (88) 11.84 (87) 11.91 (89) 11.93 (89) O Index 11.26 (90) 11.00 (83) 11.00 (75) 16.10 (73) 5.84 (51) Median 2.42 5.76 13.40 13.79 13.74 Median 13.05 13.35 12.90 16.96 6.09 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2015 Sep -2015 Jun -2015 Mar -2015 Dec -2014 Sep -2014 Investment 3.05 (75) 3.31 (70) 3.73 (55) 4.49 (32) 1.80 (95) 3.34 (53) Index 2.91 (91) 3.09 (72) 3.14 (76) 3.57 (55) 3.04 (63) 2.63 (82) Median 3.69 3.48 3.83 3.94 3.71 3.38 THE BOGDAHN Page 28 `'� GROUP Total Policy Historical Hybrid Composition Allocation Mandate Oct -1995 S &P 500 Index Barclays U.S. Gov't /Credit Citigroup 3 Month T -Bill Index Jul -2001 S &P 500 Index Barclays U.S. Gov't /Credit Jan -2008 S &P 500 Index Barclays Aggregate Index BONY ADR Index Total Equity Historical Hybrid Composition Allocation Mandate Weight ( %) Oct -1995 S &P 500 Index 100.00 Jan -2008 S &P 500 Index BONY ADR Index Page 29 83.33 16.67 Benchmark History Investment Policy Benchmarks As of March 31, 2016 Weight ( %) 50.00 40.00 10.00 60.00 40.00 50.00 40.00 10.00 Total Fixed Income Historical Hybrid Composition Allocation Mandate Weight ( %) Oct -1995 Barclays U.S. Gov't /Credit 100.00 Jan -2008 Barclays Aggregate Index 11 11 rs� THE [� BOGDAHN `'� GROUP Page 30 Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non - systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. R- Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R- Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk - adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk - adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. THE [r BOGDAHN ``� GROUP. Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client's custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S &P Indices constitutes an offer of services in jurisdictions where S &P Indices does not have the necessary licenses. All information provided by S &P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness fora particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. Page 31 THE [� BOGDAHN ``� GROUP. THE BOGDAHN GROUP.. simplifying mar invesimeiu alai jidacinry deri.shms Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland I Detroit Pittsburgh Tulsa