The URL can be used to link to this page

Agenda 02-25-15 BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING WEDNESDAY, February 25, 2015 (d), 9:OOAM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 AGENDA devised 2- 24 " =20�5 I. CALL TO ORDER — Luke Henderson, Chairman H. AGENDA APPROVAL - III. APPROVAL OF MINUTES — Quarterly meeting November 5, 2014 IV. FINANCIAL REPORTS: A). Davidson, Jamieson & Cristini, PL — Richard Cristini & Jeanine Bittinger 1) Audit Financial Statements PYE 9 -30 -2014 2) Audit Renewal Contract - B) Bogdahn Consulting — Dave West, Consultant 1) Change of Internal Control -- 2) Investment Performance Review for Quarter 12 -31 -2014 & Adjustment on Investment Policy Statement 3) Manning & Napier — Update 4) PIMCO — Update on changes 5) Presentation on International mandates and other options. C) Gabriel, Roeder, Smith & Co — Melissa Algayer 1) Actuarial Valuation Report for 10 -01 -2014 D) Attorney Report — Adam Levinson 1) Klausner, Kaufman, Jensen & Levinson— 17 Annual Conference March 15_ 18" 2015 2) Salem Trust — Suitability of Design & Operating Effectiveness of Controls- SSAE 16 Audit Report 3) Salem Trust update letter of Jan 2015 on Company direction with Summary of Salem Trust and STIF. V. CORRESPONDENCE — 1) ASB Real Estate — New Contact — Clyde W. Robinson, Managing Director & Group Head — Client Services — Letter dated 1 -20 -2015 2) Fishing Tournament /Chili Cook -Off — Saturday, April 11, 2015 3) "Why Pension Reform is Inevitable" by Commissioner Mike Fitzpatrick" 1 VI. OLD BUSINESS — 1) Pension Administration Software /Hardware Update — Fire/Police Joint venture - Documentation provided 1 -22 -2015 for review and implementation. 2) Fact Sheet to counter misinformation on Pension Funding — Dave West & Pete Strong VII. NEW BUSINESS: A. Invoices for review and approval: 1. Schroder Fixed Income Mgt — Qtry fee 03 -31 -2015 - $7,299.87 2. DSM Capital Partners LLC — Qtry fee 03 -31 -2015 - $22,089.48 3. Bogdahn Group — Qtry fee 12 -31 -2014 - $8,375 4. Klausner, Kaufman, Jensen & Levinson — Service Oct, Nov, Dec 2014 - And Jan 2015 - $7,860 6. Anchor Capital Advisors — Quarterly fee — 12 -31 -14 - $ 7. GRS - Service Nov 2014 - $2,573 8. Alerus — Qtry DROP Admin Fee - $500 9. Davidson, Jamieson & Cristini —Audit Financial Struts PYE 9 -30 -2014 — $10,300 and 2014 Annual State Report - $1,200 10. Intercontinental - Management Quarterly fee 09 -30 -2014 - $8,653.84 withheld from dividend reinvestment plan. B) Updated GASB No 67 Disclosure Information by GRS 01 -09 -2015 C) Retirement Benefit Verification — Jaime MacAlpine D) Fiduciary Liability Ins..NCPERS quote requested for April 2015 renewal. VIII. PENSION ADMINISTRATOR'S REPORT: 1. Benefits as of 02 -01 -2015. IX. PUBLIC COMMENTS: X. ADJOURNMENT: Next Meeting Date — WEDNESDAY, May 6th, 2015 @ 9:00AM— Renaissance Commons Executive Suites If you cannot attend, please call Barbara @ 561/739 -7972. NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE FIREFIGHTERS' PENSION BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE /SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.s. 2$6.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. THEN BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. BOARD MEMBERS MAY NOT PARTICIPATE FURTHER EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY. 2 MINUTES OF-THE BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING HELD ON WEDNESDAY, NOVEMBER 5, 2014, AT 9:00 A.M. AT RENAISSANCE COMMONS EXECUTIVE SUITES, �� f CONFERENCE ROOM 1, 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH, FLORIDA - i PRESENT: Luke Henderson, Chair Barbara LaDue, Pension Administrator Helen (Ginger) Bush Adam Levinson, Board Attorney Matthew Petty Jonathan Raybuck L. Robert Taylor, Jr. Chief Ray Carter, Ex- Officio I. CALL TO ORDER — Luke Henderson, Chairman Chair Henderson called the meeting to order at approximately 9:14'a.m. II. AGENDA APPROVAL Ms. LaDue added: • Item IV, Financial Reports, C) Attorney Report, 1) Four -Year term for Trustees, and 3 Rulemakin on Section 60T-1.0035. g . • Item VI,, Old Business, 2) Pension Administration Software update, Scott Bauer will be present to make a presentation. The Board can adopt this and move forward on the new programs. • Item VII, New Business, Invoices, the'Schroders Quarterly Fee amount - $7,448.64 • VII, New Business A) Invoices, Item 6 from Anchor Capital Advisors should be around $16,000, She had, not yet received the invoice. Motion Mr. Petty so moved. Mr. Raybuck seconded the motion that unanimously passed. III. APPROVAL OF MINUTES,.— Quarterly meeting August 6, 2014 There was one change on page 5, second paragraph, other expenses for administration and 1?lant Plan . .". ' " . MEETING MINUTES FIREFIGHTERS' PENSION TRUST FUND BOYNTON BEACH, FLORIDA NOVEMBER 5, 2014 Mr. Jewett explained it was unlikely, especially in investment grade bonds because the portfolio is a short portfolio and he discussed bond maturities. Mr. Taylor commented if they changed the overall compensation of the quality by switching from AA to A bonds, as long as it remained .investment grade, there would be some issues in that context. Mr. Jewett explained as long as there is a parameter of A or better and a minimum rating per security of BBB bonds. He pointed out inventory on a market -value adjusted basis was only 10% of what it was in 2007. Attorney Levinson inquired if the Board gave Schroders flexibility and allowed them to increase corporate exposure, would it come from the asset -back side, the treasury side or a combination. Mr. Jewett explained it was contingent on where they were in the cycle. Attorney Levinson. advised the Board should direct the consultant to come back to the next meeting with the recommended changes, which could then be implemented. I Mr. Jewett reviewed various scenarios. They respond to the market and do not forecast. The performance for the quarter reflected it outperformed by 20 basis points and year - to -date by 60 basis points. Since inception, it outperformed by 44 basis points. If they had been given the authority during the same period, they would have earned 100 basis points over the benchmark. The rolling yield was 3.1%. They take risk out of the portfolio. Mr. West thought having an intermediate bond portfolio structure would help shorten interest rate sensitivity exposure versus the aggregate. It was noted delaying the vote to the next meeting would not pose any issues. B) Bogdahn Consulting — Mr. West, Consultant 1. Investment Performance Review for Quarter & PYE 9 -30 -2014 Mr. West reviewed the rior quarter was negative. The total fund net of f P q fees, was u 9 � P 10.17 %, beating the actuarial rate of return. The fund ' finished slightly below the benchmark by 55 basis points and the total fund was 10.3 %. The three -year return was annualized at 13.78 %, placing the fund in the top 36 percentile. The five -year return annualized behind the benchmark at 10% and ranked in the 46 percentile. It was a mixed year for active equity managers. Anchor Capital beat the benchmark and performed well. For the three -year period, they were slightly behind the benchmark. For the five -year period they were slightly above the benchmark and in the 35 percentile. Since inception they were at 17.10 %. The Vanguard S &P 500 Index was at 10.76 %. The midcap fund, for the year, was at 15.89 %. Small and midcaps underperformed. The DSM Growth Manager struggled and finished under 1.9 %. Fiscal year to date, they were at 17.2 %. For the three-year- period, they were ahead of the benchmark at 23.9% versus 22% and in the top 22 percentile. For the five -year enod the fund was ahead of the benchmark at 17.28% versus 16 %, ranking in the 20 percentile. 3 ' MEETING MINUTES FIREFIGHTERS' PENSION TRUST FUND BOYNTON BEACH, FLORIDA NOVEMBER 5, 2014 There were no changes in the Templeton Global Bond Fund. There were significant gains - from currency positions, and the Fund was at 6.35% versus the benchmark of 1.4 %. Attorney Levinson noted not all clients were diversified in global fixed income: He noted there were benefits during the one -year period to being invested in global fixed income versus domestic fixed income. A review of real estate reflected Intercontinental was up almost 14% versus the peer group at 12.4 %. ASB was at 12.85 %. The fund .opened for the year at $69,286,822. Contributions were $6,181,864. Distributions were $4,585,094.. Investment management fees, which were the non - mutual fund fees invoiced and paid by the custodian, were $102,550. Other expenses were $111,565. Income and realized and unrealized gains were $7,434,559, ending at $78,104,037. Mr. West will adjust the policy for STW and provide an assessment and other options for the international mandate at the next meeting. 2) LBC & Crescent funding update C) Attorney Report —Adam Levinson 1) Four -Year Term for Trustees — Status Ms. LaDue reviewed the Trustees with terms ending in 2014/2015, with the new four - year terms, would now end in 2016/2017. The City Clerk's office will make the changes. 2) Proposed Ordinance Vac /Sic Snapshot Administrative Rule in effect 11 -14 -2013 Attorney Levinson explained this Board already addressed the issue. Included in the meeting materials was a memo from his office dated June 2011. There was no further action needed by the Board.. Chair Henderson noted the City drafted two ordinances, one pertaining to firefighters and the other regarding police, which cut their benefits. It was on the Commission agenda and it indicated the ordinance was approved by the Board, but the Boards had not seen it. The ordinances were pulled and it was learned the ordinance was drafted as a directive of the Finance Director. The City Attorney worked on the ordinance which accrued a cost and the City would be billed. This could result in a class - action lawsuit as it appeared there were liabilities. The City was advised the Firefighters addressed the issue and the ordinance appeared to have removed the benefit completely, which was not the directive of the Legislature.. Chair Henderson noted the four -year terms for trustees took three to four years to pass,. and the subject ordinance just took a week. It was hoped future ordinances would pass through the Board. 5 f MEETING MINUTES FIREFIGHTERS' PENSION TRUST FUND BOYNTON BEACH, FLORIDA NOVEMBER 5, 2014 number of clients. The Resource Centers now administers many of those plans :and they were interested in the programs' sustainability if Ms. Schaffer retired or something happened to her. Resource Centers entered into an agreement with Ms. Schaffer to continue her system, but not in its current form, and the transition would occur in the first quarter of 2015. Rackspace leases space on a server, manages back -ups . for the Plan to create a secure environment, and provides technical support. The software used Rackspace and Windows 2003; however, Rackspace was upgrading and indicated they would not support the plan's environment, which forced the issue. Mr. Bauer reviewed the changes and upgrades. In addition ; to transitioning from Rackspace to a cloud -based server, two pieces of software had to be maintained: one having to do with computer language and the other having to do with. the Macola software the Plan used. Chair Henderson commented this was discussed with the Police Pension Plan. Mr. Bauer clarified they were only making a proposal for system services and not for administrative services. The Resource Centers would be hired on a retainer fee and would continue to retain Ms. Schaffer. The retainer fee would replace license and maintenance fees the Board paid to Ms. Schaffer, and the Centers' proposal included support to Ms. LaDue and technical support to function. The Resource Centers would continue to provide v updates, which was a better way to manage the information than what was currently available to Ms. LaDue and the members, and it integrated the accounting information in a better way, creating an accounting ledger and sub - ledger. It was a more comprehensive management of the information, including correspondence, applications and other items. The transition would take about two months. The calculation routines would remain the same, and they would ensure there would be no sudden -death occurrence when they left Rackspace. They would work for both the Fire and Police Pension Boards on a shared retainer arrangement, which comes close to the break even costs. Ms. Bush noted there were items in flux such as Ms. LaDue or Ms. Schaffer leaving and the ties to the Police Plan. She was surprised an RFP was not issued, and inquired why. Ms. LaDue responded this was a continuation of what they have and it was a perfect match. Mr. Bauer explained they were being proactive, and the driver of the issue was Rackspace. Attorney Levinson suggested providing a side -by -side comparison. Ms. LaDue explained if she was unable to perform her functions, Mr. Bauer's office could continue in her stead. The Board could then issue an RFP for plan administration services, but this request only pertained to the software. Capacity would not be an issue nor would 7 MEETING MINUTES FIREFIGHTERS' PENSION TRUST FUND BOYNTON BEACH, FLORIDA NOVEMBER 5, 2014 2), Pension Administration Software ,Update — iRetire by Ellen Schaffer and Resource Centers in conjunction with Police Pension, plus hardware upgrades. This item was addressed earlier in the meeting. VII. NEW BUSINESS: A. Invoices for review and approval: .1. Schroder Fixed Income Mgmt. - quarterrly fee 12 -31 -14 - $7,448.64 2. DSM Capital Partners LLC — quarterly fee 12 -31 -14 - $20,632.15 3. Bogdahn Group — quarterly fee 09 -30 -2014 - $8,375 4. Klausner, Kaufman, Jensen $ Levinson — Service Aug /Sept 2014 - $5,910 5. Anchor Capital Advisors — quarterly fee — 09 -30 -2014 - $ 6. GRS — Service May 2014 - $1,432 & June 2014 - $864 7.. Intercontinental — Management Quarterly fee 03 -31 -2014 - $8,449.29 Withheld from dividend reinvestment plan. It was noted the bill from Anchor was not received. Mr. Taylor suggested approving the bill, subject to Ms. LaDue's review. Ms. LaDue explained this was done before. Chair Henderson requested a motion to pay the bills and the Anchor bill as discussed. Motion Mr. Taylor so moved. Mr. Raybuck seconded the motion that unanimously passed. B. Implementation Package by GRS for Chapter 2013 -100 (Senate Bill #534) This was addressed earlier in the meeting. C. Davidson, Jamieson & Cristini — Auditors — Implementation of GASB 67 This was addressed earlier in the meeting. D. Mandatory Ethics Training A memo regarding .the training was included in the meeting materials. Ms. LaDue noted the training had to be completed, by January 1St E. Fiduciary Liability Ins. Arthur J. Gallagher — recommended by NCPERS Ms. LaDue received an email from NCPERS recommending the Board consider this firm, which was a very old established firm. She thought it might be a good idea to see 9 THE BOGDAHN GROUP L .011pflj •ii ;{ pour investment antl,Tducitrrr decisima FROM: The Bogdahn Group TO: Valued Clients DATE: January 12, 2015 RE: Change of Internal Control Notification The Bogdahn Group will celebrate its fifteenth anniversary in 2015. Since our inception, we have been fortunate to have had steady growth. We currently serve over 350 clients in 20 states and the District of Columbia with combined assets of approximately $60 billion. Our clients are served by 54 employees who operate out of offices in Orlando, Chicago, Milwaukee, Detroit, Cleveland, and Pittsburgh, with additional professionals in Buffalo, Memphis, and Dallas. Joe Bogdahn has been the majority equity owner of the firm since its inception. In 2005 and 2006, Mike Welker and Dave West became equity partners, respectively. Joe and Mike co- managed the firm for several years while Dave led our Investment Policy Committee. In 2011, Mike became the CEO and President of the firm, and we formalized an organizational structure to include an Executive Committee along with an oversight Board. With these leadership changes, Joe began to step away from the day -to -day management of the firm, while Mike and the Executive Committee stepped up to assume these responsibilities. Over the past year, Joe and Mike have been working hard on a succession plan to ensure the long -term success and stability of the firm. Last week at our annual retreat it was announced that Mike has acquired the majority of the firm's equity and, over the next several years, their implicit goal is to broaden the ownership of the firm amongst the employees. This is a milestone event for The Bogdahn Group and is a tangible representation of the values and philosophy that have driven the firm since its inception. The firm will remain employee -owned and 100% independent. We want to emphasize there will be no change in firm personnel or our investment consulting process. Our clients will continue to experience the same high level of service and attention to detail from the firm and their consulting teams, and we will continue to retain and attract the best talent in the investment consulting industry. This change of internal control constitutes an assignment of your investment consulting agreement to the revised employee ownership group. Accordingly, we are required by the Investment Advisers Act to notify our clients. Unless your client agreement stipulates written consent for a control change, this notification does not require any action by you as the terms of our existing agreement remain in place. We truly appreciate your business, and unless we hear to the contrary by April 1, 2015, we will conclude you consent to this change of internal control. This is an extremely exciting time at The Bogdahn Group, and we firmly believe it puts us in a fantastic position to serve our clients and employees for the next fifteen years and beyond. Please do not hesitate to call if you have any questions. 4901 Vineland Road Suite 600 Orlando, Florida 32811 Telephone (866) 240 - 7932'- Facsimile (863) 292 -8717 www.bogdahngroup.com Barbara Ladue From: Dave West [davew @bogdahngroup.com] Sent: Monday, January 12, 2015 3:01 PM To: Dave West Subject: The Bogdahn Group: Change of Internal Control Notification Attachments: 2015 -01 -12 The Bogdahn Group - Change of Internal Control Notification. pdf Please see the attached memo notifying you of The Bogdahn Group's change in internal employee control. This is truly an exciting time for The Bogdahn Group, and we look forward to discussing the news with you. We are requesting this item be added to our next meeting agenda, but please reach out in advance if you have any questions. Thanks, Dave i PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made this day of - 2015, between the CITY OF BOYNTON BEACH MUNICPAL FIREFIGHTERS PENSION FUND (hereinafter, the "Fund "), and DAVIDSON, JAMIESON & CRISTINI, P.L. ( "Auditors "). WITNESSETH: In consideration of the mutual performance of the terms and conditions contained herein, the parties agree as follows: 1. Scope of Audit a. The Auditor agrees to conduct an examination of the Fund's financial statements for the fiscal years ending September 30, 2015, 2016 and 2017, consisting of a financial and compliance audit in accordance with generally accepted accounting standards. b. The examination will include tests of the Fund's accounting records and other procedures which the Auditor considers necessary to enable it to express an unqualified opinion that the Fund's financial statements are fairly presented, in all material respects, in accordance with generally accepted accounting principles. C. If the Auditor's opinion is other than unqualified, it will fully discuss the reasons with the Fund in advance. i d. The procedures to be utilized by the Auditor will include tests of documentary evidence supporting the transactions recorded in the accounts, confirmation of receivables and other assets and liabilities by correspondence with creditors and banks. The Auditor shall also request written representations from the Fund's attorney, if necessary, as part of the engagement. e. At the conclusion of the examination, the Auditor will also request certain written representations from the Fund about the financial statements and related matters. 2. Performance Specifications a. The audit shall be based primarily on the selected testing of accounting records and related data, and will involve judgment about the number of transactions to be examined and the areas to be tested. b. The Auditor shall also plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. It is understood, however, that because of the concept of reasonable assurance, and because the Auditor will not perform a detailed examination of all transactions, 2 that there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by the Auditor. C. The Auditor will advise the Fund, however, of any matters of that nature which come to its attention. d. The Auditor's responsibility shall be limited to the periods covered by the audit and do not extend to any losses that might be incurred during any later periods for which the Auditor was not engaged. e. The Fund will provide the Auditor with the basic information required for the audit and will be responsible for the reasonable accuracy and completeness of that information. The Auditor will advise the Fund about appropriate accounting principles in their application and will prepare the financial statement in accordance with those principles based on the information provided by the Fund. f. The auditor acknowledges that it is currently aware of all federal and state laws applicable to the Fund and agrees to staff the engagement with adequately trained and supervised personnel, as indicated in the proposal which was submitted to the Fund, subject to the Auditor's right to substitute personnel of similar competence. 3 g. It is understood that the audit is not specifically designed nor will be relied upon to disclose significant deficiencies in the design or operation of the internal control structure of the Fund. During the audit, however, should the Auditor become aware of any such reportable condition or ways in which the Auditor believes that the management practices can be improved, they shall be communicated to the Fund both verbally and in a separate letter. 3. Compensation a. The fee for the Auditor's services shall be $11,500 for the year ending 9/30/15, $12,500 for the year ending 9/30/16, and $13,500 for the year ending 9/30/17. The charge for preparation of the Fund's annual report shall be $2,000 per year. Additional services shall be billed at the rate of $150 per hour. This hourly rate shall be fixed for an initial period of three years. b. Invoices for the fees will be rendered as work progresses and are payable upon presentation. C. No Additional charges shall be paid unless approved by the Board of Trustees, which shall not unreasonably withhold its approval upon demonstration by the Auditor of the necessity for the additional charge. 4 4. Miscellaneous a. The Auditor shall submit the final audit for approval by the Board no later than the third Friday in February of each year. In the event that the Auditor determines that the work will not be completed in a timely manner, the Auditor shall notify the Board of Trustees of the delay and the reasons therefore. b. The Auditor acknowledges that it is a fiduciary with respect to its obligations under this Agreement. C. During the term of this agreement, the Auditor shall maintain a professional malpractice insurance policy with coverage in the amount of $1,000,000. On an annual basis the Auditor shall provide proof of the required insurance coverage. d. This contract shall be governed by the laws of the State of Florida and any dispute involving the interpretation of this Agreement shall have its venue in Palm Beach County, Florida. In the event that litigation should be necessary to enforce the provisions of this Agreement, the prevailing party shall be entitled to recover costs and attorneys' fees. 5 e. This Agreement shall have a duration of three years, but may be terminated by either party, with or without cause, upon thirty (30) days' written notice. In the event that work is terminated in advance of the term of the contract, the Fund shall be responsible only for the payment of those fees incurred to the date that notice of termination is communicated. f. The Auditor agrees that it has been retained based on its present partnership and that this contract is not assignable to any other firm. FUND: CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS PENSION FUND By: Chairman Secretary AUDITOR: DAVIDSON, JAMIESON & CRISTINI, P.L. By: Richard A. Cristini, C.P.A. 6 �c r� - +- �,4 �t:•. j •� > r. 0. � r _• -_ � s,.., .,tti... � v..eJ,�2�+�5 � is _.r _,.:... -5.v . _ s.. .[ � , s. . _ .; ", � �... s,. t_,..r f.. - '{��...... ...a.......�"a,.... ()I=I( �®1C RAPET 1"'10N. .a" r 3'a •'• _ • k�� '��..�...,�kvr .� ��.•Y rs.''� .� �F�� .� -t i<. �. � �t� �� .� I �� "'�5.�'�� Y om. • ��" � a " x &s�,'�...'�'.....,n.�`�'- r;�.:: NM x a., M ...4 A.. f r.�' .S` '�, V y :: T'�SS �• . 3`��'. ' �3a',. :.Yk?:d.,h'^� vr; i 3i 'b�a��3c'ESE�� ` ��:�� Y �.,. may.. �c�*.. � .�`� n..,M ,� ,- rt ( ,,�.z•... �,�•� ��r'� e �'�- e �- � 4 � �"�. � s . ....................... `t�� }. ,..,�^r't- a"..l' "».,.f '- -"��4� � :.t .x��' _ ,,�7q ua a ,-.r•c n 1 1 1 1 ' 1 t y ea •� . . . MI SSIO N kji;? �. ' t�':.,.e 7�sd_.:...a .�'3�"��•��`��•:'.�.._nn s� *v�::i�._;: a•_"_��f'm�u c� -�___. �_.� 3i.�: INCLUDIN87HE �1" Plfl>� M.0�� SI6NrSYSfEM Smith & Wesson MAP 15 Tactical .223 Rifle (retail value $1,900) ' . IMEMTMIML IND: * Guns also donated for 2nd and 3rd place prizes * Additional prizes for Hardest Hitting & Fastest Dogs .: F�3, fs 4 3 oant� anziw 7c �r i��.�' ? +z: Cl1ij ��t aF r ��ixE Ss>x tom,. KE .F o <HQS e� b t o BoyA ton eeac N Q11R rt a r 5 rL Y t E x 3 x r 1 s 1,.r`' f K r„a- ."�rar'. a # L..z3k3.f;�.�.: :t`�°'`a.. ax,,,;. F �� r_° �� `rf�r.. �' ••� (.a- a 1 'z �r ar� i �.e 1 .-, ti '�� w s�' }c r t -'9 � � L,xti� .�P�mors'`ani�o"�ritaci� BB�D�fficer 8r�n:�darr►�� €a�#'r1.�6- 866�.� aclamsbl�bb� �7s , „- � < �ti -i,WR. f t a i {rrt c ra : .,�.3.u... s ' "_'_ •___�_,...: t:� _..,i,_...a . _�... ...._ . ' SPONSORED, IN PARTNERSHIP, BY. JC f CHAS E A C 11 C.Hl. SAFARILAND 4 o MAIN. 1 H� r 4AClG1L SY5i13A1� H eRGlAaeuuET ve ru �� NNIYEB i TEGLB co n� DESIGNED BY b REE OP - I *, '7:- r I- ; ) . 1 may'• � a- r� ij` cl s - x . f . r_ 7 K �•$ • . - I ,+y .4' 1 i k " fi t, 0 \ - 2. r r r i W Ir � l l I ! '4 I � ` \\ i �+..e..' � I 74:2,--11,..:1.....1: r � ,� - ' I I I - ,. ° - i � 1 i . r „Jr icel" , .‘,.,.-;,1.,.;-.f - q.k:,-, - 4 - _ - ..z., , rizi"., , .. . 1 i �a A r 1 o f, t oe F t h ; ''.......N\N ' � : " 1 ° nsionf n �"- 7 1 d • to i, . . - , '-‘,2 ' --,, ,,,,,, - ...,,„ i -, t 1 . '�'1dfS' 13 ! •! r ?e +l yon I r' ..'IY - ., .:-... 46 „.;,... z._ 1, 4, .. /114 LA i. ., ...._______ ____A___.,......,,,,,, .,:. . c :. I ' Tll a Y , • t � f ri m. ..,fit r . ,� i s r' : / j I Ld4 k �, r3. r'0.`s'':, 3 Q _ # r' i r - %.�� ' •°ice 3 I + „ , V . • .1 M- 1 n „ . - :L . • i,G - . - .� y III (per! @�p�,:v .'1'. '' ” 41 _� \ '` ` . 'mR � � y _s�A -4� , fiiiiiw,, ....11,01,....______.,.. - -rr --- ' ef-14-1-V. . 1-5. * ai - , ir" 1121 §A\ (______7_- tm----„..::..,,,aa-___________7.A__ , Ists i ,aus.....J...ztp-____,- . , -,, wow __ N P -.: 5' �•. 1. a - ? `... , .. Klausner, Kaufman, Jensen & Levinson Presents our 17 Annual Client Conference Join us at the Hyatt Regency Pier 66 in Fort Lauderdale, Florida March 15 th - 18th 2015 FREQUENTLY ASKED QUESTIONS Over the course of the years that we've been putting on the conference we have received a number of questions which warrant repeating. We hope that these will serve as a helpful guide in maximizing your conference experience. 1. Why do you have the conference? We are great believers that the key to success as a fiduciary is education. The purpose of the conference is to provide an opportunity trustees to hear speakers who are leaders in all disciplines in pension management and also to have the opportunity to share common experiences with fellow trustees and administrators from throughout the United States. 2. Who are the sponsors? To help offset the cost of the event we have invited a limited number of sponsors to participate. They represent providers of various services to the pension industry. We do not permit sponsors to hold separate events which would take participants away from the educational programs. We appreciate the assistance and support of the sponsors which enable us to provide the most complete educational experience. 3. Does the conference satisfy continuing education requirements? Some states require trustees to receive a minimum amount of educational credits in investment, legal and fiduciary issues. The conference satisfies those requirements. In addition, we have been approved for continuing legal education credit by a number of state bars. Upon request, we will apply to any governmental regulatory agency for continuing education approval. 4. The registration form says something about a spouse or guest. Are the guest events appropriate for children? The answer to this is no. Our evening events are designed for adults only. We regret that we cannot accommodate children. Our experience over the years has taught us that the most enjoyable evening events are those for adults. 5. Do I need a car? All conference activities take place at the hotel and transportation is provided for our offsite event. The hotel has a shuttle service to Ft. Lauderdale beach. 6. What is the dress for the various events? Dress for the seminar hours is casual. That way you can tell the speakers from the attendees. Hotel conference rooms are sometimes chilly and a jacket is usually recommended. For the welcome event on Sunday night and the off -site event on Monday night, the dress is also casual. For the dinner and show on the Tuesday evening of the conference, the dress is business casual. 7. What's the weather like in Ft. Lauderdale in March? The temperature in March is usually mild. Like all of South Florida, weather is unpredictable. We recommend that you check the weather before coming and plan accordingly. S. Will the hotel honor conference rates for days prior to the conference? The answer is yes. The hotel has agreed to honor the conference rate 3 days pre and post March 15, 2015. We hope you'll take the opportunity to enjoy some Florida hospitality. 9. After sixteen conferences what is the greatest value in putting on the program? Besides the satisfaction of providing additional service to you, our valued clients, is the opportunity to see interaction among trustees and administrators from throughout the United States. All of you have told us over the years that the opportunity to share experiences, problems and successes with others who understand our industry, has been one of the best and most satisfying features of the conference. 10. What if I have more questions? As we have always said, the only dumb question is the one you didn't ask. We invite you to call the office and inquire about any of the issues related to the conference to ensure that it provides the maximum educational opportunity. We look forward to seeing you in Ft. Lauderdale in March, 2015. 17TH ANNUAL CLIENT CONFERENCE 2015 Reaching the Emerald City In his classic tale, L. Frank Baum leads an intrepid band of characters in search of the magical land of Oz. One seeks courage; another is in search of wisdom; a third desires a heart; and the heroine is looking to find her way home. Along the way, our travelers confront dangers galore. Increasingly, retirement security for public employees is facing threats more dangerous than the Wicked Witch of the West. But it doesn't have to be that way. With our magical team of wise counselors and financial wizards combining our knowledge and skills, we can help follow the Yellow Brick Road to a meaningful retirement for America's dedicated and deserving public employees. The 2015 Klausner, Kaufman, Jensen & Levinson 17th Annual Client Conference is dedicated to defending pension rights, which seem increasingly surrounded by forces seeking to melt valuable pension rights. But, instead of evil spells, we will offer wise counsel, thought- provoking presentations and much needed good fellowship. So get out your calendar, and mark March 15 - 18 as the perfect opportunity to: • ACQUIRE WISDOM and improve your fiduciary skills • HAVE THE HEART to embrace innovative, problem solving presentations • GAIN THE COURAGE to confront the challenges facing the public pension community • RETURN HOME for a memorable educational journey At the conference, Bob, Stu, Bonni, Adam, Paul, Bill and our legendary team of pension wizards will survey the cumulative effects that changing capital markets, often conflicting court decisions, state legislatures and the US Congress are having on the pension and benefits landscape. More importantly, we'll move forward with our expert analysis of what may be in store for the legal, political, and fiscal future with a special emphasis on: • breaking legal issues • capital preservation and growth • plan design challenges and solutions • best fiduciary practices for long -term success And once the issues of the day have been duly discussed, we'll go from kicking around ideas to simply kicking back amid the classic hospitality and professionalism you've come to expect from us. Due to strong demand from previous conferences, enrollment is limited to 200 attendees, so please make sure you register early. Once we reach the limit, registration will be closed. For the last several years, we've actually had to turn people away! You may make your hotel reservation through the secure link on our website or directly with the hotel by calling 800- 554 -9288. Other than that, here's all you need to do: ✓ Enroll online today by visiting our website: www.robertdklausner.com ✓ In the alternative, you may return your completed form by scanning and emailing it to dana @robertdklausner.com ✓ Book your reservation with the hotel online or by calling. We look forward to welcoming you back to Florida for an enriching experience. As for our annual predictions — 1. You will leave feeling that you have found the Emerald City of Pension Success. 2. You will enjoy yourself immensely. So click your heels together three times and say - I wish I was in Ft. Lauderdale. December 31, 2014 Re: Bridge Letter for LJSFAS's SSAE16 (Report on IDescription of USFAS' System and the Suitability of the Design and Operating Effectiveness of Controls) Dear Report Recipient: Crowe Horwath .LLP performed an independ.ent examination related to the fiduciary and investment support services of USF Affiliate Services, Inc. ( "USFAS ") made on behalf of two of its affiliate trust companies, GreatBanc '].'rust Company and Salem Trust Company, as well as certain services received from another affiliate, specifically, investment advisonv services from Pennant Management, Inc., in accordance with the Statement on Standards for Attestation Engagement No. 16 ( "SSAE 16 Report "). The SSAE 16 Report addressed the period from June 1, 2013 through June 30, 2014. For the period from July 1, 2014 to December 31, 2014, we make the following representations which are true to the best of our knowledge and belief. USFAS management is responsible fo:r the design and implementation of internal control procedures. We believe that the description of controls in the SSAE 16 Report is accurate but needs to, be expanded to include a description of our cash processing an.d account maintenance procedures. USFAS, as a normal part of its operations, continues to update and enhance its services and technology. Improvements have been made to the control environment since the end of the prior control period. I.SFAS has cash processing and account maintenance procedures which will be incorporated ag into management's r n na ement s �'c •' 7 description of controls in. next year's s SSAE 16 Report. Please note that the controls for USFAS are designed with certain responsibilities required of the report users. (See the client control considerations noted in the most recent SSAE 16 Report.) If you have any questions, feel free to directly contact our office at the number listed below. Sincerely, Matthew J. Bowman Senior Vice President N ': ti 1. : 3 f r is A r; a:; .. is :;O; l4'.+1 ,t ! 1.:0 „FIE 11 w L I TEL } ..r S..:i.'.JCI�•.R Y . _ " iiit. .N ._'.A } %t., "L ..;irli .,,.i;'.. C C.? M P A N Y February 17, 2015 Salem Trust Company's 2013 -2014 transition to a new operating system was a decision that we needed to make, although it led to unforeseen complications. But in the end we prevailed and overcame the challenges and the new operating system is now serving Salem Trust clients well. Our attention now focuses on the last remaining conversion issue, the distribution of the SSAE 16 report for the period immediately following the conversion of June 1, 2013, to June 30, 2014. During the transition, many statements were late and some trades may have been delayed, but ultimately never with unresolved consequences to the client. The difficulties we experienced resulted in a redesign of our procedures and controls. Salem Trust's operating effectiveness, as a result, has been greatly enhanced. I have stated in prior communications that the vast majority of Salem Trust's clients' have now gone through fiscal year -end audits for the period of time during which Salem Trust's conversion occurred. We are pleased to be able to report that fiduciary and safekeeping functions of Salem Trust were not compromised. The benefit payments were sent out on time; trades were always processed; no assets were lost or comingled with those of another; and dividend and interest income was always collected. The annual service organization audit we undergo, the SSAE16, focused on our internal processes and controls in place during the time of the 2013 -2014 conversion. Those processes and controls have been improved in response to our conversion and are more effective than those in existence during the period June 1, 2013 thru June 30, 2014. We would like to take a moment and share portions of the adverse opinion from our transition -era audit, and explain our point of view in response. I welcome the opportunity of answering any further questions that you may have. Regards, / , Bradley K. Rinsem, President & Chief Executive Officer DEERFiELD BEACH TAMPA 1715 N WESTSI-IORE BOULEVARD, SUITE 750 0 TAMPA, FL 33607 0 TEL (877) 382 5268 0 FAX (813) 301 -1295 tow wo,Sal nitrrist,con, SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE -OWNED COMPANY. C F°l 7 t T( T r 1 z C O M F A N Y SALEM TRUST'S RESPONSE TO THE SSAE 16 AUDIT FOR THE PERIOD OF JUNE 1, 2013 TO JUNE 30, 2014 SSAE 16 in General Salem Trust's response: It was discovered early in the conversion process that incomplete data interfaces delayed the posting of marketable security trade settlements. The consequence of the delayed postings was magnified by failed trades from investment managers who did not follow revised trading instructions. These trading instructions were provided several times before the conversion. Direct intervention with investment managers occurred immediately during, and frequently after, conversion. The daily journals, which support the rapid pace for reconciling trades and accompanying income postings, were not appropriately archived and, as the report notes, created a document void for the validation of control processes. The consequence is that the audit tests could not always specifically identify the source document that was used. The absence of appropriately archived documentation to test controls lies at the heart of the auditor's opinion. No attempt was made to present an artificial operating design and exaggerated controls. As management notes, we have identified and acknowledge certain deficiencies in our system description, system design, and operational effectiveness of the system. Improvements have already been implemented. SSAE 16: The accompanying description of the USFAS system for affiliate fiduciary and investment support services does not include the controls that are in place to monitor and periodically reconcile trust cash. Salem Trust's response: We did not specifically include cash controls within the description because other parts of the description prompted tests of cash, such as the tracing of wire activity during the trade and settlement process and the testing of wires /checks during the disbursement process. Controls are in place to monitor and periodically reconcile trust cash. Salem Trust's reconciled cash positions for our clients were, and still are, in balance with our service providers. Reports related to actions for the reconciling of cash positions are being retained so that testing to the source documents can be performed for the next period. Management will also include a section in the USFAS system for affiliate fiduciary and investment support services description for cash controls that will be used in the next test. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 2 - Q To TplicT C p NI F` A N 1' SSAE 1 6: The description also does not include the controls that are in place to perform and determine the accuracy of maintenance changes to client accounts to include changes to investment discretion, investment objective, client addresses, client phone numbers, and disbursement amount or frequency. Salem Trust's response: Without written direction, Salem Trust does not perform maintenance changes to client accounts affecting addresses, phone numbers, and disbursement amount or frequency. The testing for the next period will include a review of these source documents that are used in the normal course of facilitating the written requests from our clients. Salem Trust does not operate with investment discretion nor does it operate in a capacity that would affect the investment objective of our clients. SSAE 1 6: USFAS states that it has controls in place to compare trades on the AddVantage system against trade information from USB. USFAS also states that it has controls in place to reconcile trade settlements with USB on a daily basis in order to make a net settlement. USFAS further states that it has controls in place to reconcile the asset positions between USB and SunGard on a daily basis and between Fidelity and SunGard on a semi - monthly basis with a review being conducted by supervisory personnel on a monthly and semi - monthly basis, respectively. Salem Trust's response: Salem Trust client statements show correct and accurate trade data and asset positions, including cash. This has been documented by the reconciliation of investment managers, investment consultants and the auditors of our clients. The recent number of monthly failed trades has been modest and, even then, reconciled so that client and stakeholder statements are accurate. SSAE 16: (I) It was identified that the design of the controls are not sufficient to retain documentation to support the performance of the stated controls and (2) additionally, it was identified that evidence of review of the asset position reconciliations was not formally and consistently documented. Salem Trust's response: The core element of the SSAE 16 audit is the presence of retained documentation that supports the ability to test an operating task. The daily reports to reconcile trade settlements and asset positions are now being archived to provide documented support of these activities. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 3 rr C O JI P A N Y SSAE 16: (I) USFAS states in its description that it has controls in place to reconcile income amounts posted with the amounts actually received from USB on a daily basis. USFAS also states in its description that it has controls in place to review and resolve unprocessed income maps and (2) it was identified that the design of the controls are not sufficient to retain documentation to support the performance of the stated controls. Salem Trust's response: Our clients' income has been factually documented by the reconciliations of investment managers, investment consultants and auditors. Income is not missing or misplaced. We remain in balance with our service providers and positions held by our clients. Documentation is now being retained to provide documented support that these actions are being performed. SSAE 1 6: USFAS states in its description that it has controls in place to set up and perform distributions based on client requests or the terms of the governing instrument. However, instances were identified where supporting documentation for distribution could not be provided, client direction for disbursements could not be provided, and client direction provided was not from an individual authorized to transact for the client account. Salem Trust's response: The appendix will show this finding was not related to any clients of Salem Trust. All distributions from Salem Trust client accounts are made after receiving written signed direction from authorized entities. Appendix A details the findings of the SSAE 16 audit The conditions which led to many of the testing deficiencies go back 18 months to the consequences of the conversion. The majority of the test results show "No exceptions were identified "; several were not associated to the processes and procedures in effect at Salem Trust; and the "Management Response" to the test results confirm that solutions have been identified and implemented to rectify the absence of sufficient documentation and other items. Salem Trust's Response to the SSAE 16 February 17, 2015 Page 4 • • Barbara Ladue From: SalemTrustCompany [ SalemTrustCompany ©salemtrust.com] Sent: Tuesday, February 03, 2015 4:11 PM To: SalemTrustCompany Cc: Anita Mazorra; Ashley Pelletier; Brad Rinsem; Brian Bizzell; Deborah Kocsis; Karen Russo; Lynn Skinner; Mark Rhein; Martha Resto; Vicki Short; Wanda Gordon Subject: Important Information from Salem Trust Company Attachments: January 2015 Updates Letter finai_2015- 01- 13.pdf; STCSTIF1- 30- 2015(Final)_1.pdf Please find, attached, a letter from Salem Trust's President & CEO, Bradley K. Rinsem, summarizing how we envision our company now and in the near future. Also attached is a document package explaining the impact of an alleged fraud on a pooled investment for which Salem Trust had been the trustee, the Short-Term Investment Fund of the Salem Trust Collective Investment Trust (STC STIF). The package details the total impact of the problem and what is being accomplished to resolve it. If you have further questions, please contact Mr. Rinsem, or your normal Salem Trust contact, rather than replying to this Email. We look forward to the privilege of serving you this year, and believe we have in place the best possible team for all your needs and questions. Regards, Your Salem Trust Client Services Team 1 1 ' f . .� . c o MF'ANY January, 2015 RE: Our service commitment to you. It has now been more than a year since Salem Trust Company transitioned to the trust accounting system most widely used by our industry. I know the road getting here may have seemed like a long one, but we are encouraged by the end results and are better equipped to deliver top tier service in 2015 and beyond. All of our clients' fiscal year -end audits have now been completed and the auditors all have confirmed my repeated assurances that the all- important fiduciary and safekeeping functions of Salem Trust were never compromised. The benefit payments were always sent out on time; trades were always processed; no assets were lost; and dividend and interest income was always collected. There is more good news. Our operations system is fully integrated with our client service team and managed at the local level; we have established a team that is capable of analyzing trade patterns, identifying potential problems and deploying security movement specialists to quickly intervene to prevent a small problem from becoming a bigger one. Salem Trust was founded and continues to operate almost exclusively as a provider to public pension systems and their service providers. This market is the beating heart of our business. The patience and loyalty exhibited by our clients have been deeply felt by us, and our goal now is to respond with a complete focus on one thing, and one thing only: serving our public pension clients with the highest quality client custodial service. Our singular dedication to our one central business will, I feel, be the best way to operate the most effective, client- centered organization in the state. The public pension systems provide security to the thousands of public servants who contribute to our quality of life here in Florida. I am honored that Salem Trust serves hundreds of public plans, and also supports the efforts of the Florida Public Pension Trustees Association and its Relief Fund. Humbled by the daily trust you place in us, I am gratified to be at the helm of our team, but I also look forward to hearing from you about how we can better serve you as your pension plan's custodian. Regards, , 00 ram, � Bradley K. Rinsem, President & Chief Executive Officer DEERFIELD BEACH TAMPA 4:55 FAIRWAY DRIVE, SUITE 103 n DEERFIE {I:.t' BEACH, FL:331;FI. fl 'CGIf_. (877) 382 -5268 ®.FAX (931) 725 -4493 wrvw. srTIem trust. co SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE - OWNED COMPANY. • Barbara Ladue From: Adam Levinson [adam @robertdklausner.com] Sent: Wednesday, February 04, 2015 9:02 AM To: Barbara Ladue; 'Henderson, Luke'; raybuckjon @yahoo.com; 'Petty, Matthew'; roberttaylorboynton @gmail.com; 'Ginger'; 'Dave West'; serviceteam003 @bogdahngroup.com Cc: 'richard cristini'; 'Jeanine Bittinger' Subject: RE: Important Information from Salem Trust Company All, As Dave can confirm, no Boynton Fire assets were affected. Adam Levinson Klausner, Kaufman, Jensen & Levinson 10059 N.W. 1st Court Plantation, FL 33324 ph. (954) 916 -1202 fax. (954) 916 -1232 Website: www.robertdklausner.com n7:7 Disclaimer: This e-mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e-mail and delete the original message. Nothing in this e-mail message shall, in and of itself, create an attorney - client relationship with the sender. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. From: Barbara Ladue [ mailto :laduebCabbpdpension.com] Sent: Wednesday, February 04, 2015 8:33 AM To: 'Henderson, Luke'; raybuckjon@ yahoo.com; 'Petty, Matthew'; roberttaylorboyntoncagmail .com; 'Ginger'; 'Dave West'; serviceteam003 @bogdahngroup.com; Adam Levinson Cc: 'richard cristini'; 'Jeanine Bittinger' Subject: FIN: Important Information from Salem Trust Company Wanted to make sure everyone received this info. Barb La Due 1 L SALEM T UST C O M P A N Y Salem Trust Company and the STIF Summary: On or about September 22, 2014, Salem Trust, as the Trustee of the Short -Term Investment Fund(the "STC STIF ") of the Collective Investment Trust II (the "Trustee "), was advised by its affiliate, Pennant Management, Inc. ( "Pennant "), the investment advisor for the STC STIF, that securities which Pennant had purchased and the Trustee had accepted for the S'1'IP' may have been fraudulent and apparently without value. The securities at issue, repurchase agreements issued by First Farmers Financial LLC, were acquired by Pennant for the STC STIF, based upon representations that the loans which collateralized the securities were valid and therefore fully guaranteed by the United States. An inquiry by Pennant, however, found that the loans were fictitious potentially calling into question the application of the government's guarantees. On September 29, 2014, Pennant filed a civil lawsuit against First Farmers Financial LLC, its principals, and certain other persons and entities to recover the guaranteed portions of the loans purchased by Pennant as well as other damages, including punitive damages. On September 30, 2014, agents of the Federal Bureau of Investigation arrested Nikesh A. Patel of Orlando, Florida, the Authorized Member of First Farmers, on fraud charges, alleging that Patel through First Farmers sold at least 25 loans to Pennant Management and others on false pretenses, submitting, among other things, fabricated loan guarantee forms falsely reflecting the USDA guaranteed portions of the loans' principal amounts. In conjunction with its lawsuit, Pennant has taken steps to identify and secure the Defendants' assets. The Federal District Court in Chicago entered an Agreed Order appointing a Receiver to take control of the Defendants' assets, protect them and ultimately liquidate them through an orderly sales process. Under the Order, Pennant will work with the Receiver in identifying, safekeeping, valuing and liquidating any assets of the Defendants in an effort to maximize recovery of the losses resulting from the Defendants' alleged fraud. The liquidation of these assets has commenced and the gathering of additional assets continues. Pennant will seek to recover all the losses sustained by the STC STIF. The Trustee intends to allocate any funds recovered through these efforts to the participants in the STC STIF. Salem Trust's records reflect that no Florida municipal employee retirement plans were invested in the STC STIF, and that only one Florida firefighters' account had invested in the USFS Funds Limited Duration Government Fund, a mutual fund organized by U.S. Fiduciary Services, Salem Trust's parent corporation, and advised by Pennant. This fund had acquired a single repurchase agreement issued by First Farmers Financial LLC. DEERFIELD BEACH TAMPA 1715 N WESTSHORE BOULEVARD, SUITE 750 0 TAMPA, FL 33607 0 TEL (877) 382 -5268 • FAX (813) 301 -1295 www.salemtrust.com SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE -OWNED COMPANY. SA E TRUST C O M P A N Y FAQs: The STC STIF and Salem Trust Pension Clients How many police, firefighters and general employee municipal plans were impacted? There were no Florida public pension plans affected by the STC STIF, and only one that was affected by a single security purchased in a mutual fund. Will there be any possible impact on Salem Trust's public pension plan clients? The situation with the STC STIF will have no impact on any pension plan using Salem Trust as its custodian. There will be no financial impact or service disruption of any kind. Salem Trust's daily service is in no way impaired or compromised as a result of the fraud committed against Pennant. Pennant continues to work with the court appointed Receiver to liquidate the assets already recovered and identify additional sources of recovery. Were client assets, outside of the STC STIF, ever in jeopardy? No, client assets outside the STC SELF and related investments were ever compromised in any way. It is important to remember that all of Salem Trust's client assets are maintained and under custodial care. Each client asset is held in the name of or for the account of that client, separate and apart from the assets of other clients or those of the custodian. Are client assets ever held in Salem Trust's name? No. Client assets are never held in Salem Trust's name, nor is the value of any client asset made a part of Salem Trust's balance sheet. Are there any reasons to not retain Salem Trust as a custodian? From a Risk vs. Reward analysis, the answer is clearly no. We believe that there is no unusual risk to the client or the retirees. Pennant has made significant progress in the recovery process, and a receiver has been appointed by the U.S. District Court to assist in identifying, gathering and liquidating recovery assets. Assuming the consideration of changing custodian, it requires considerable time and expense to accomplish. A change should only be considered after understanding the magnitude of the task. Changing custodians typically requires a RFP or RFQ, which is expensive and time consuming to all. A new custodian requires new contract negotiation and execution. Information continuity is broken, causing additional work at year end for the plan sponsor, plan administrator, record keeper, investment managers, consultant, CPA, actuary, tax preparer and class action processing service. A change in custodian raises concerns over the accurate transition of retiree benefit payment information: name, DOB, address, social Summary and FAQs regarding STC S " 111 4 January, 2015 Page 2 T SALEM TRUST C O M P A N Y security number, withholding preference, direct deposit information, various deductions, taxable/ nontaxable information and stop dates. Multiple sources of year -end tax reporting is confusing to the retirees. Changing delivery instructions for investment activity and income collection can be frustrating and costly. We are convinced that in spite of the fraud committed against Pennant, we believe that Salem Trust remains the best custodian and pension payment service provider for a public pension plan. The matter of the First Farmers Financial fraud committed against Pennant will not have a material impact on Salem Trust's financial viability, its ability to perform its assigned duties to clients, or its level of client service. FAQs: the recovery process for clients that were impacted What is being done to recover client assets? Pennant Management has established a recovery trust to hold liquidation proceeds of assets valued in excess of $100 million, as of January, 2015. These proceeds will be distributed proportionately from the trust to the clients affected by the alleged fraud. Additional assets have been identified and we expect to take possession of those assets quickly, liquidate them, and distribute the proceeds as soon as possible. What is your timeline for asset recovery? Matters such as this move slowly. Even so, Pennant Management has accomplished significant progress in their legal and recovery proceedings in a very short time. Three million in proceeds were distributed on January 30, 2015. Our plan during February, 2015, is to liquidate assets with more than $100 million of value and distribute the proceeds as soon as possible. How much of the alleged fraud can be expected to be recovered? We firmly convinced that there is very good reason to believe that all clients will recover fully. As of January, 2015, Pennant Management has already recovered assets with market values equal to about 60% to 70% of the total alleged fraud, with more assets identified and in the process of being captured. Will any client of the STC STIF or related security suffer a Toss? We do not believe so. Currently Pennant Management has recovered approximately 60% to 70% of the 20% write down clients experienced. Pennant remains optimistic and is working diligently with law enforcement and the courts to gather additional assets and recover the remaining balance of the investment write down. Summary and FAQs regarding STC Sllr' January, 2015 Page 3 SALEM TRUST C O M P A N Y Have any clients of the STC STIF sued about the loss? Out of over 65 investors, only one has felt compelled to file a lawsuit, which was filed on September 29, 2014. The plaintiff, however, has been cooperating with Pennant Management by marking the recovery progress and taking no further action since filing the suit. Please explain Salem Trust's client communication during this crisis. Our clients have been kept well informed. As a result of our commitment to total transparency and excellent client communication, clients have proven supportive as the recovery process is proving successful. We feel that STC STIF clients and those clients' advisors understand where to place the responsibility for the impairment of their funds. Where should we go if we have further questions? Bradley K. Rinsem, President and CEO of Salem Trust Company, (954) 426 -5772. Summary and FAQs regarding STC January, 2015 Page 4 SALEM TRUST C O M P A N Y Profile of First Farmers Financial Fraud Total of Salem client investment in the STIF at the time of alleged fraud: $ 78,608,269 Total of Salem client investment write down as result of fraud: $ 15,579,241 Total of Salem police, firefighters and general employees' public pension $ 0 • assets in the STC STIF: Total of Salem client investment in USFS Funds Limited Duration $ 35,480,000 Government Fund at the time of fraud: Total of Salem clients' investment in USFS Funds Limited Duration $ 2,828,863 Government Fund at the time of fraud: Total of Salem Public Pension Plan client's investment in the USFS Funds $ 159,024 Limited Duration Government Fund at the time of fraud: Total of Salem Public Pension Plan client's investment write down as $ 11,363 result of fraud Summary and FAQs regarding STC S11:11 January, 2015 Page 5 Barbara Ladue From: Robinson, Clyde [crobinson @asbrealestate.com] Sent: Tuesday, January 20, 2015 12:48 PM To: Robinson, Clyde Subject: New Contact -- ASB Real Estate Client Services Clyde W. Robinson �••� AS B Managing Director & Group Hea Client Service r_ z i.. r V = r =• January 20, 2015 Dear Client: I am very pleased to inform you that I have recently joined ASB Real Estate Investments as Managing Director and Global Head of Client Services. As a member of ASB's senior management team, I oversee all client relations activities, including the capital raising of the Firm's flagship core Allegiance Fund and ASB's value- creation Meridian Fund series. As you already know, the Allegiance Fund is one of the real estate's industry leading open -end vehicles, as ASB's Core Real Estate Composite has achieved ten -year top quartile performance.* In'today's challenging marketplace, I believe ASB to be particularly attractive for the following reasons: • ASB continues to build on its strong history in the real estate industry, having been active investing in and managing real estate assets across a variety of property types and markets in the US through various cycles over the past 30 years. • ASB's strategic focus is in urban markets with superior real estate fundamentals and in assets that have unique competitive advantages that will drive long -term tenant demand. Notably, ASB has targeted investments in dynamic 24 -hour urban U.S. markets characterized by a mixed -use environment where there are synergies between office, retail, and residential assets and strong drivers including above average employment and job growth, constraints on new supply, and strong urban core. • ASB's platform across core and non -core real estate provides insights for assessing relative value in a choppy, dynamic market environment. I am proud to be working with my colleague and partner, Judy McCoy, who has played a major role in the growth of ASB. I am grateful for the extraordinary results she produced in building our business, and am very pleased that she will continue as the relationship manager for all electrical industry clients and for labor relations with the company. I, Judy and all the members of our client services team will continue to work diligently to serve your interests and strengthen our ties to you. At ASB, I aim to marshal my 15 years of global client management and capital raising experience for the benefit of you -- our investors. Please feel free to reach out to me if I ever can be of assistance. All of us at ASB thank you for your continued support, and we look forward to working with you in 2015. Sincerely yours, Clyde Robinson 1 ' * As of 6/30/2014. The ASB Core Real Estate Composite is benchmarked against the NCREIF Fund Index Open -End Diversified Core Equity (NFI- ODCE), which tracks the performance of national open -end core real estate investment vehicles. Past performance is not indicative of future results. Clyde W. Robinson 1/........ Managing Director and Group Head, Client Services 1 7501 Wisconsin Avenue, Suite 1300W Bethesda, MD 20814 REts7r E,iv ST�AEh:Ts Tel: 240.482.2991 Cell: 703.489.5316 Fax: 240.482.2950 crobinson @asbrealestate.com www.asbrealestate.com 2 Rules &Regulations 1. ENTRY FEE PER BOAT: $225 per boat paid on or before April 1, 2015. $275 if paid after April 1, 2015. No exceptions. Register and pay online atwww .boyntonbeachfirefighters.com. -- , CCD) , 2. REGISTRATION: Entries should be mailed to Boynton Beach Firefighting Benevolent Association Attention: r1 Yn g di , �i y I L J. F I , 1� Fishing, 2080 High Ridge Rd„ Boynton Beach, F133426. No entries, angler changes, or angler additions can be made , I J( after the close of registration on April 9, 2015. Registration fee Is non refundable for any reason. tA � I i it trp ' 3. CAPTAIN'S MEETING: Bra's Room Sports Grill located at 1333 N. Congress Ave., Boynton Beach,. P1 33426 (561) , I tl " I II' } 4 r II _ II ; 1 :; `'i' r' l - • i 739-9332 Thursday, Aprll 9, 2015 register /check -in from 5s00- 7toopm, rules announced at 7:oopm; One angler from y M1ti (� w ,,.' ' t , x • y 4 1 .. f 1 = 4� { u . each boat must be present, you will not be able to fish this tournament if not present: Official rules will be reviewed and ! i any rule changes will be given at this meeting. e ' ++ ti -` A . , '" _s - . 1 Ir r 4. TOURNAMENT HEADQUARTERS & OFFICIAL WEIGH STATION: Boynton Beach Firefighter Benevolent 1 r _ i _ a x scales at Boat Club Park, 2010 N. Federal Hwy„ Boynton Beach, Florida 33435 constitute the official weigh station, '4 j y -' + s `'1pl '( t i x r { Regular weigh -in hours: Saturday, April 11, 2015 will be from noon to 4 :oopm, if you wish to weigh in sooner,. contact F �r� our weigh master on channel 68. No fish hooked or boated after hours stated above will be eligible. i� - • ' 4- : f � ` I i„ , 5. ANGLERS PER BOAT: Four (4) registered anglers are permitted per boat; additional anglers are;$5o,00.per per f -� ' f 41 V . f, son. Anglers may also serve as captain and /or mate. :l , �s t,{• q m . "' �` . t f , �.Y I43y ' ' ,c .1r i1 � mil'. 6. COMMUNICATIONS: All participating boats should be equipped with a woriong VHF marine radio The tourna t y w ' 1. w „ '• , P I f e'tAllr ! <; u ; , re' roe y 4 � f i t j�d� �P # r _ Y "f �� ;1 nament on th channe o l NO WEIGH -IN STATISTICS WILL BE AVAILABLE LE ON VH RAD IO aunced' ilurin th t .� ,,I I y , ' , g k C � � 1 J �. r' r 1 I ; ' ir �', Ic ' " -:•_ p�*'•,� � e 7. START and HOURS OF FISHING: Saturday, April 11, 2015, Gentlemen's start lines in @ 7;ooam and all lines out r p � • , I 1 j I u, , ,, Y ' I. Y P Weigh P P Y 4: y Y mem r . t!'I I C it It, i ;i 4 ,, - ' - �, T %— er this tournament h s is for charity are relying everyone u to abide b the •rules this donot leave, inlet µ s I I '. I: ' 1 i'I' 'Sa- «i -i tY Ymg Y I L W+, I� 6 ' 1 « � " ,1? '�� its before our official start y� i , 6 � '�' I 1 t 1 , ", w ' te a; i� 4 '' - " -- , d tii 8. ELIGIBLE : FISH: Dolphin; Kingfish and Wahoo Mutllfl #ed fish will not be eligible for any dateggry M util9tlon ,� _- y� i l e r ' I 1L L ' f a• b Wei t'master,; $l 0 000 in cash rues' awarded on loo boat "entries $oc:al:Secur n i - -41- _ •+ L 7i �r [ 1 Y gh � P • t umbers are regmred for cash V � n� � , r ,l � determined '�I •. � i'll � I�� , �I!l' = �� 1 1 ' s` winners over $6o0. .. _. . .,., . . r . , -: ^ <_ � ., Vi 4 � � 0 ' B. b l' [ �Pi J \ 'r' d k' ,'T { 1 u 0 el - � ' 9. CATEGORIES/MINIMUM WEIGHTS /JR & LADY ANGLER: O O - A) The minimum weight for Dolphin, Kingfish or Wahoo in any category is five (5) pounds. $ 0! T & Presented B based on ino boats- B) Fish not meeting these minimum weights will not count. All fish must meet state requirements. a $ h C) Junior angler must be 12 years or younger, boy or girl, no minimum weight. NOT a cash award category. 1St, 2nd, 3rd: in C Y Y 1 ,_ I a " . D) Lady angler cash prize to be determined. Prizes , �' " r , { " �` E) Only ne cash prize per category will be awarded per boat. ` '' _ l� 't3 _ ALl ' DI U T_i Y P P rY p 1o. TIES: In the event of a tie in weight, the winner will be determined by the earliest weigh -in time. IOth Annual (Proceeds benefit) (Proceeds benefit) 11. BAIT & TACKLE: No bait restrictions. Live bait permitted. All fish must be caught on rod and reel. Wire lines - rI permitted. No Electric Reels! No "Live Bait" chumming! - ' Tr X1 ,0 �Tr. Fishing Tournament . SICMj 12. Tournament winners maybe subject to a polygraph test. All fish maybe examined by any means necessary. I I i,°4 ° i - 13. FISHING BOUNDARIES: The fishing limits of this tournament are in territorial waters of the U.S. l7e p ` 14. ENTRY REFUSAL: THE BOYNTON BEACH FIREFIGHTER BENEVOLENT ASSOCIATION FISHING COMMIT- ALUMNA Chili Cook-Off ' .._.,,,,45,_ ` , �' . TEE reserves the right to refuse any tournament application or entry from a prospective entrant with or without cause. "' - Any applicant refused entry shall be entitled to a refund of entry fee. "Dating IF 1Yt➢1 i e' 1 WEATHER CONDITIONS: In the event of unsafe conditions at sea, the weather committee, in its best judgment, may call off the tournament until better conditions prevail. Such notice of cancellation and resumption will be broadcast Saturday, Apr il 11, 2015 on channel 68 and on our website www.boyntonbeachfirefighters.com. In the event of full cancellation, tour- nament prizes will be awarded by drawings for category prizes at awards party, must be present to win. Captains are Boat Club Park ultimately responsible for their crew and fish at their own risk. 2010 N. Federal Hwy. Boynton Beach, Florida 16. THE BOYNTON BEACH FIREFIGHTER BENEVOLENT ASSOCIATION FISHING COMMITTEE and any and all fix,... participants will abide by any federal, state and /or local laws that pertain to the environmental control of the fisheries. Flyers provided by our official printer: Konica Minolta SiuA NitMtxtry All registered anglers must possess a current Florida saltwater fishing license if requested. a � .n 17. NOTE: Tournament rules are subject to Change without notice. ANY CHANGES WILL BE ANNOUNCED AT THE CAPTAINS MEETING. F 1 ,', I,r .I _r I, - i f r , P Za'W1 'ir. " . www .boyntonbeachfirefighters.com ca igi r,I r _ _ each F• i r119�, try {. r � ,, to +S„�catsd',?.s+^.a�r�,:.� >r�?� i�<Ti;'S f o t ` ul REGISTER O TODAY!!! www.boyntonbeachfirefighters.com. Boats registered by '� , s . ,, (` raCt I April 1 pay only $225 and you will be entered into a special raffle eligible for 3 individual drawings. t t ■' i f . I ' � ^�I � �}} ' .`t • Registration after April]. will be $275. I: ,7 :° . , _ _ r3 I, I 1 W li ALL BUT. - . . 4ca1169s Boat Entry Registration Chili Cooh -Off Registration .' �p `�� q ®. , 511 h i , .,-r � (Entry Deadline April 9, 2015) " 1 R . L, MJ I I A : 4_111 ' (Entry Deadline April 9, 2015) 111:11: ALUMNI Team Name Catch MmirE Fp5ti ' Team Name: I a. Ti-Ea� � ! � � �`"� � �� " PAP Ji ost�ifcA t�n� y�p�i!� l e' F �yl ._ rorx RIMPi nrn -a-.1 ch en p ---� '=', � b k- Brothers Captain: Captain: i r ti, ova Address: ` ' v Address: I . ull +I filr! r. GOLD COAST d�'� BEVERAGE .� V RAGE DISTRIBUTORS Phone: ' ` Email: ''-, Ifa� ^ ��r rftwir is 3 sam,Nauu 141f dL. Phone: §ecca Qze' Angler 2 ! r I il o Q:MBROO®ERV I I i Email � �� +��_! � I. . I CO A' ' J+ L. il � ' R • Angler 3: One member of each chili team is `!, F11,I1 r , An $1,.r l rs'Ip p - Angler � f + s" e g encouraged to .� 4 d, l�s H i +� ? �' 1J Angler 5: $50 extra attend Captain's Meeting ( r R a �I P If i k I I ' n F , � ;,r,-.4, r 1 I x 'Kt' n n.,3 1 i. 1 fi 1),ht I Aia5]Yd5 CIGLIOffil EMI -_- - ---'` ' •°°'''°' 'lL'-' One angler from each boat must 7Pm on April 9, 2015 at °' "" ' • o L k attend Captain's meeting. - rr 0 + ir Bru's Room L 1 ' . Register /Check -in from 5-7pm. � . , - u RAYMOND WEIL 'DulCUlmica T m 1333 N. Congress Ave. - iti I, FaT1 e r r I,,g , Rules @ 7pm on April 9, 2015. g. rppg� 9i�, GENEVE Bru's Room 1333 N. Congress Ave. Boynton Beach, FL n ler L �luirgl ;;; d4'I.a.,d,h• CHARRIOL T Fishing Tournament Chili Cooh -Off GENEVE O ne member of $i000 in Cash Pr izes -j *Over $10 ,000 ( J ( _� _ ,3' --j4,! ,-1 ` ,—� 0]-097' 3.1 77114- e ach team is I ' 12 _ L ; N in total cash & �_ -4 4 '• SNiO,G� Q prizes! * required to $25 to Enter h all 1.11d 11^ a i. „r ='. illlc,nl MN- imp TM ° _...- �' ' . 7am Gentlemen's attend Captain's Judging starts @ 2pm start/Lines out Meeting on April 3Pm 9, 2015. Register / Allotted 10 x io space SCA _ LES _ .� '� I .l d EN CPA N .nCP” Vii' - . 12 Cate ories check - ins - 7Pm. a ` P 1111,li. LARDS l S including: Rules @7Pm NO electric available ` l �T Kin sh Dol hin Bru's Room : ;� "MI HENC1 P NO generators allowed , , , .r,,, &Wahoo 1333 N. Congress Ave. A . ' .. ft unk,g `� ys 1st, 2nd and 3rd BB, FL 334 Attendance required r -- 1 lai` I h °- place! Early Entry Fee S & T Automotive m 0.,,,b0,-,,,, ' P ' �i I i , 1 i IC_ Noon to 6p 1 l Mystery fish $225 by 4/1/15 Tom Kruse A/C , ( p ` �Ilr a 1 i Wr * *Lad Jr. Angler $275 afte d - I r , ;I `�- 1 3` 0 y/ g 75 Set up by nam Town of Lantana , Questions: Roffs , T a " S l y _ ,1 ► 11 � . * Questions call: Alex Fernandez , rl MARINE S5 gTtNE, Based on 10o Jim Witt DV8 Motorsports — I ` ` y ,1 „ ti Boats 561- 252 -0769 5 61- 34 Roberto Coin '�,r Nil F' �JL PI_nl * *not a cash award aln MARI NE PRODUCTS Admiral Nelson's Spiced Rum " $ " • ' � , 1 h a 1,11,t ,, a 501(C)(3) Organization Federal Tax ID #65- 0908962 Registration #CH10868. A COPY OF THE OFFICIAL REGISTRATION Hooker's Electric ��` AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL -FREE (800 - I��011c,,,s MANIC ir? . 1 "I rn 11F11 NI l � -! , E ' I4 435 -7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE Red Eye Trolling Lures k", 3 - I STATE. INVOICE Schroders Schroder Investment Management North America Inc. 22nd Floor 875 Third Avenue Ms. Barbara LaDue New York Pension Administrator NY 10022 -6225 City of Boynton Beach Municipal Firefighters' Pension Trust USA Renaissance Executive Suites 1500 Gateway Boulevard, Suite #220 Telephone: +1 212 641 3830 Boynton Beach, FL 33426 www.schroders.com USA Tax Registration number: 13- 4064414 Invoice Date Invoice Period February 3, 2015 January 1, 2015 to March 31, 2015 Invoice Number Client Code 01153310 CLT00061637 Account ID Account Name GB93787001 City of Boynton Beach Municipal Firefighters' Pension Trust Fund Assets Under Management 7,786,530 Management Fee 7,299.87 Total Amount USD 7,299.87 Payment Instructions We should be grateful to receive your remittance in settlement of the above fee. Electronic payments should be made to: Bank: Citibank NA (Swift: CITIUS33). Bank ABA Number: 021000089 For the account of: 36836344 (USD) Account Name: Schroder Investment Management North America Inc. If posting checks please attention them to Robin Aviles at the address above. If you have any queries regarding this invoice please contact Schroders Client Service at Schroders_CSNY @schroders.com Registered Office at the above address. Registered number 134064414. Authorized and regulated by the Securities and Exchange Commissions. For your security, communications may be taped or monitored. Fee Calculation Report Invoice Date Invoice Period February 3, 2015 January 1, 2015 to March 31, 2015 Invoice Number Client Code 01153310 CLT00061637 Investment Management Fee Breakdown Market Value Fees GB93787 City of Boynton Beach Municipal Firefighters' Pension Trust Fund 7,786,530 7,299.87 GB93788 City of Boynton Beach Municipal Firefighters' Pension Trust Fund - TIPS 1,145,138 0.00 8,931,668 7,299.87 Fee Schedule Market Value Fee Rate p/a Annual Fee Quarterly Fee 0 to 30,000,000 7,786,530 0.375% 29,199.49 7,299.87 30,000,001 to 100,000,000 0 0.250% 0.00 0.00 100,000,001 to 500,000,000 0 0.125% 0.00 0.00 500,000,001 to 1,000,000,000 0 0.100% 0.00 0.00 1,000,000,001 and above 0 0.080% 0.00 0.00 7,786,530 29,199.49 7,299.87 INVOICE DSM CAPITAL PARTNERS LLC 116 Radio Circle Drive, Suite 200, Mt. Kisco, NY 10549 Tel: (914) 242 -1900 22 - Jan - 15 Invoice No: 14417 Luke Henderson City of Boynton Beach Municipal Firefighters Pension Trust Fund 1500 Gateway Boulevard, Suite 220 Boynton Beach, FL 33426 Billing Period: FROM 01/01/2015 TO 03/31/2015 Account Name City of Boynton Beach Municipal Firefighters Pension Trust Fund Portfolio Value $10,114,387 Amount Due $22,089.48 FEE CALCULATION % of Annual Rate Rate Assets Under Management Fee 1.0000 % 0.25 On the first: 5,000,000 12,500.00 0.7500 % 0.25 On the next: 5,114,387 9,589.48 Total $22,089.48 To wire payment: JP Morgan Chase ABA #: 021000021 A/C Name: DSM Capital Partners LLC A/C #: 3241067005 Invoice THE ' DP N Date Invoice # RIP UP 12/3/2014 11128 4901 Vineland Rd Suite 600 Orlando, FL 32811 Bill To Boynton Beach Firefighters' Pension Plan Attn Barbara La Due Description Amount Performance Evaluation for 9/30/14 Reports and Consulting 8,375.00 Services through 12/31/14 10/1/2014 - 12/31/2014 Balance Due $8,375.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS January 29, 2015 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16492 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 01/29/15 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 01/13/15 REVIEW BOGDAHN INTERNAL CONTROL NOTICE 0.20 60.00 01/20/15 REVIEW EMAIL FROM LADUE RE ENHANCED 0.50 150.00 SECURITY; CALL TO LA DUE 01/23/15 REVIEW REVISED REGS UNDER 60T 0.20 60.00 Total for Services 0.90 $270.00 CURRENT BILL TOTAL AMOUNT DUE $ 270.00 Past Due Balance 7,590.00 AMOUNT DUE $7,860.00 0,-( Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS December 31, 2014 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16401 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 12/31/14 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 12/04/14 REVIEW EMAILS FROM BAUR; CALL BAUR 0.50 150.00 12/05/14 REVIEW PRC CONTRACT; REVIEWED EMAILS; 1.00 300.00 DRAFTED EMAIL TO BAUR 12/11/14 RECEIPT AND REVIEW EMAILS; REVIEW FILE RE 0.50 150.00 CRESCENT 12/12/14 REVIEW EMAILS RE TRANSFERS; REVIEW FILE , 0.50 150.00 12/19/14 REVIEW PATEL ISSUES - 0.20 60.00 Total for Services 2.70 $810.00 CURRENT BILL TOTAL AMOUNT DUE $ 810.00 Past Due Balance 6,780.00 n �° AMOUNT DUE .- $7,590.00 184 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS November 30, 2014 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16313 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 11/30/14 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 11/03/14 REVIEW PRC PROPOSAL; REVIEW FILE 1.50 450.00 11/03/14 CONFER WITH BSJ; CALL TO CHAIR; REVIEW FILE 1.00 300.00 RE PENDING ISSUES 11/04/14 PREPARATION FOR BOARD MEETING 1.50 450.00 11/05/14 ATTENDED BOARD MEETING 5.00 1,500.00 11/05/14 DRAFTED EMAIL TO ACTUARY RE FACT SHEET 1.00 300.00 11/10/14 CONFERRED WITH LUKE AND BONNI RE PENDING 1.00 300.00 ISSUES; REVIEW FILE 11/13/14 CONFERENCES AND REVIEW OF SB 1128 ISSUES 1.50 450.00 11/13/14 REVIEW FITZPATRICK MEMO AND PENDING ISSUES 1.00 300.00 11/13/14 REVIEW SB 1128 ADMINISTRATIVE RULE; CONFER 0.70 210.00 WITH RDK 11/14/14 CONFERENCE RE SB 1128 1.00 300.00 11/14/14 CONFER WITH BONNI AND RDK; REVIEW PENDING 1.00 300.00 ISSUES 11/19/14 DRAFTED EMAIL TO BAUR RE PRC CONTRACT 0.70. 210.00 11/20/14 RECEIPT AND REVIEW RESOURCE CENTER 1.50 450.00 AGREEMENT; DRAFTED EMAILS; REVIEW PENSION ORDINANCE 11/20/14 ANALYSIS OF FACT SHEET ISSUES; REVIEW FRS 0.30 90.00 WEBSITE; DRAFTED EMAIL 11/25/14 RECEIPT AND REVIEW EMAILS FROM BARBARA 0.50 150.00 AND FILE; REVIEW DIRECTION LETTER Total for Services 19.20 $5,760.00 • Continued .. . Client: BOYNTON BEACH FIREFIGHTERS PENSION FUND November 30, 2014 Matter: 900334 - BOYNTON BEACH FIREFIGHTERS - GENERAL FILE Page 2 CURRENT BILL TOTAL AMOUNT DUE $ 5,760.00 Past Due Balance 1,020.00 AMOUNT DUE $6,780.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attomeys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS October 31, 2014 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16216 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 10/31/14 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 10/01/14 RECEIPT AND REVIEW EMAILS RE TRANSFERS 0.50 150.00 10/02/14 REVIEW EMAILS RE CRESCENT TRANSITION 0.20 60.00 10/02/14 REVIEW EMAILS AND ORDINANCE RE SB 1128; 1.00 300.00 CALL TO BONNI AND LUKE 10/09/14 REVIEW EMAILS AND FILE RE CRESCENT AND 0.50 150.00 CITY CONTRIBUTION 10/29/14 RECEIPT AND REVIEW EMAILS RE CAPITAL CALL 0.20 60.00 10/30/14 RECEIPT AND REVIEW AGENDA; REVIEW FILE 1.00 300.00 Total for Services 3.40 $1,020.00 CURRENT BILL TOTAL AMOUNT DUE $ 1,020.00 e, Past Due Balance 11--(72/4 5,910.00 AMOUNT DUE $O,33G:60 GRS Gabriel Roeder Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 Date Invoice 12/12/2014 411117 Bill To: M _ Please Reniit To: Attention: Ms. Barbara La Due Dept. # 78009 City of Boynton Beach Gabriel Roeder Smith & Company Municipal Firefighters Retirement Fund PO Box 78000 Renaissance Executive Suites Detroit, Michigan 48278 -0009 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal TaieID 38- 1691268 Client 100560 - 'Amount For professional actuarial services rendered for the Boynton Beach Municipal Firefighters Retirement Fund through 11/30/2014 Benefit calculation for Macalpine 225.00 Charges to date for preparation of the 10/1/2014 Actuarial Valuation Report; total' 2,348.00 charges to date equal $2,348 Amount Due $2,573 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 A Ai 'nu FINANCIAL Barbara Ladue Invoice No: 20152672 City of Boynton Beach Date: 01/26/2015 Municipal Firefighters 1500 Gateway Blvd., Suite 220 • Boynton Beach, FL 33426 BOYNTON BEACH FIREFIGHTERS PENSION PLAN (DROP) Account#: 653714 Description : Code # of Units Unit Rate Total Amount :..:..: Administration Fee 403 1 $500.00 $500.00 TOTAL DUE $500.00 Please return the enclosed COPY of this invoice with your payment in the envelope provided. Please make all checks payable to: Alerus Financial ATTN: Danell Westbrock P.O. Box 64535 St Paul, MN 55164-0535 If payment is not received within 60 days of this invoice, outstanding fees will be charged to your account. If you have any questions about this billing, please contact Alerus Retirement Solutions at 800.433.1685. Your account administrator is Jerome Hogness. Thank you for your business! Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, F134698 12,29,2014 R7297 Phone # 727 - 734 -5437 Fax # 727 - 733 -3487 Bill To City of Boynton Beach Firefighters' Pension Plan 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Audit of Financial Statements for the year ended September 30, 2014 Progress Billing 5,600.00 Total $5,600.00 Payments /Credits $0.00 Balance Due $5,600.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, F134698 Phone # 727 - 734 -5437 2/6/2015 R7311 Fax # 727- 733 -3487 Bill To City of Boynton Beach Firefighters' Pension Plan 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Audit of Financial Statements for the year ended September 30, 2014 Final billing 10,300.00 Less amount previously billed - 5,600.00 Total $4,700.00 Payments /Credits $0.00 Balance Due $4,700.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 Davidson, .Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, F134698 2/6/2015 R7312 Phone # 727- 734 -5437 Fax # 727 - 733 -3487 Bill To City of Boynton Beach Firefighters' Pension Plan 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Preparation of the Plan's 2014 Annual Report for the Florida Division 1,200.00 of Retirement Total $1,200.00 Payments /Credits $0.00 Balance Due $1,200.00 Terms: Invoices are due and payable upon receipt. Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum). Minimum monthly service charge is $5.00 • • - INTERCONTINENTAL REAL ESTATE CORPORATION INTERCONTINENTAL 1270 SOLDIERS FIELD ROAD BOSTON, MASSACHUSETTS 02135-1003 TELEPHONE 617 -782 -2600 FACSIMILE 617- 782 - 9442 www.intercontinental.net PAUL J. NASSER Chief Financial Officer and Chief Operating Officer November 19, 2014 Ms. Barbara LaDue, Pension Administrator City of Boynton Beach Firefighters' Pension Fund Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 . RE: U.S. Real Estate Investment Fund, LLC Dear Ms. LaDue: We are pleased to announce that U.S. Real Estate Investment Fund, LLC (US REIF) has made a distribution to you in the amount of $42,221.12, which constitutes your pro rata gross share of an overall distribution of $10,137,650.65. The :Fund has :withheldl$ 653 84. for payment of asset managerrientlees for .the .thir&quarter 2014, resulting in a net distribution to you of $33,567.28. As authorized by your executed Dividend Reinvestment Plan (DRIP) letter, Intercontinental has reinvested your net distribution of $33,567.28 into US REIF. Intercontinental will report the number of reinvested shares as part of the fourth quarter 2014 reporting. If you have any questions or wish to change your method of payment, please contact Bart Weinstein at 617 - 779 -0440. Sincerely, ad. J Aloe4 Paul J. Nasser 0 202 • Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com January 9, 2015 Ms. Barbara La Due Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Updated GASB No. 67 Disclosure Information - Dear Barbara: We have prepared the updated actuarial disclosure information required under Governmental Accounting Standards Board (GASB) Statement No. 67 for the fiscal year ending September 30, 2014. The following exhibits were based upon audited financial information as of September 30, 2014, which was furnished by the Plan's auditor (Davidson, Jamieson & Cristini), as well as information furnished by the Plan Administrator. If any of this information changes during the auditing process (including benefit payments, contributions, administrative expenses, or the actual market value of assets as of September 30, 2014), then the following exhibits will need to be revised: • Statement of Changes in Net Pension Liability and Ratios, using the single discount rate • Schedule of the Employer's Net Pension Liability • Schedule of Contributions • Notes to Schedule of Contributions • Sensitivity Analysis Please refer to our October 1, 2013 actuarial valuation report for the projection of cash flows, cross over date calculation, and information related to participant data, economic and demographic assumptions, and benefit provisions. Please note that there are other items not listed above that will be required in the Plan's financial statements and /or the City's Comprehensive Annual Financial Report (CAFR) to fully comply with GASB No. 67 standards. This additional information will need to be provided by the Plans' investment consultants, accountants or other financial statement preparers. Required Disclosures The liability calculations are based upon information furnished by the Plan Administrator for the October 1, 2013 Actuarial Valuation concerning plan benefits, financial transactions, plan provisions, and active members, terminated members, retirees and beneficiaries. We reviewed this information for internal and year -to -year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based on the assumptions, methods, and plan provisions outlined in our October 1, 2013 Actuarial Valuation Report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, or that conditions have changed since the calculations were made, you should contact the author of this letter prior to relying on information in the letter. This letter may be distributed to other parties only in its entirety. Future actuarial measurements may differ significantly from the current measurements presented in this letter due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in such 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, or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. To best of my knowledge, the information contained in this letter is accurate and fairly presents the actuarial position of the plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standard Board, and with applicable statutes. The undersigned is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuary is independent of the plan sponsor. We welcome your questions and comments, Respectfully submitted, „T, Peter N. Strong, FSA Senior Consultant and A ary PS /jc Enclosures Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax- related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax- related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. This communication shall not be construed to provide tax advice, legal advice or investment advice. Gabriel Roeder Smith & Company SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS GASB Statement No. 67 Fiscal year ending September 30, 2014 Total pension liability Service Cost $ 2,772,724 Interest 8,188,369 Benefit Changes - Difference between actual & expected experience (28,363) Assumption Changes - Benefit Payments (4,292,070) Refunds (50,673) Other (Increase in Excess State Reserve) 312,239 Other (Rollovers into DROP) 343,843 Net Change in Total Pension Liability 7,246,069 Total Pension Liability - Beginning 108,781,854 Total Pension Liability - Ending (a) $ 116,027,923 Plan Fiduciary Net Position Contributions - Employer $ 3,522,147 Contributions - Non - Employer Contributing Entity (State) 1,016,561 Contributions - Members 1,291,773 Net Investment Income 7,187,580 Benefit Payments (4,292,070) Refunds (50,673) Administrative Expense (122,390) Other (Rollovers into DROP) 343,843 Net Change in Plan Fiduciary Net Position 8,896,771 Plan Fiduciary Net Position - Beginning 69,382,320 Plan Fiduciary Net Position - Ending (b) $ 78,279,091 Net Pension Liability - Ending (a) - (b) 37,748,832 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 67.47 % Covered Employee Payroll $ 9,925,925 Net Pension Liability as a Percentage of Covered Employee Payroll 380.31 % I SCHEDULE OF THE EMPLOYER'S NET PENSION LIABILITY GASB Statement No. 67 Total Plan Net Position Net Pension Liability FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of September 30, Liability Position Liability Pension Liability Payroll Covered Payroll 2014 $ 116,027,923 $ 78,279,091 $ 37,748,832 67.47% $ 9,925,925 380.31% SCHEDULE OF CONTRIBUTIONS GASB Statement No. 67 Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of September 30, Contribution Contribution (Excess) Payroll Covered Payroll 2014 $ 4,226,469 $ 4,226,469 $ - $ 9,925,925 42.58% NOTES TO SCHEDULE OF CONTRIBUTIONS GASB Statement No. 67 Valuation Date: October 1, 2013 Notes Actuarially determined contribution rates are calculated as of October 1, which is two year(s) prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 23 years Asset Valuation Method 5 -year smoothed market Inflation 3.5% Varies by years of service from 3.5% to 14.0% (see Table in Actuarial Assumptions Section of the October 1, 2013 Actuarial Valuation Salary Increases Report) Investment Rate of Return 7.65% Retirement Age Rates vary by age and years of service (see Table in Actuarial Assumptions Section of the October 1, 2013 Actuarial Valuation Report) Mortality 1983 Group Annuity Mortality Table for males and females Other Information: Notes See Discussion of Valuation Results on Page 1 of the October 1, 2013 Actuarial Valuation Report SINGLE DISCOUNT RATE GASB Statement No. 67 A single discount rate of 7.65% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.65 %. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on pension plan investments (7.65 %) was applied to all periods of projected benefit payments to determine the total pension liability. Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan's net pension liability, calculated using a single discount rate of 7.65 %, as well as what the plan's net pension liability would be if it were calculated using a single discount rate that is 1- percentage -point lower or 1- percentage -point higher: Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption Current Single Discount 1% Decrease Rate Assumption 1% Increase 6.65% 7.65% 8.65% $ 46,422,969 $ 37,748,832 $ 30,555,820 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made this day of , 2015, between the CITY OF BOYNTON BEACH MUNICPAL FIREFIGHTERS PENSION FUND (hereinafter, the "Fund "), and DAVIDSON, JAMIESON & CRISTINI, P.L. ( "Auditors "). WITNESSETH: In consideration of the mutual performance of the terms and conditions contained herein, the parties agree as follows: 1. Scope of Audit. a. The Auditor agrees to conduct an examination of the Fund's financial statements for the fiscal years ending September 30, 2015, 2016 and 2017, consisting of a financial and compliance audit in accordance with generally accepted accounting standards. b. The examination will include tests of the Fund's accounting records and other procedures which the Auditor considers necessary to enable it to express an unqualified opinion that the Fund's financial statements are fairly presented, in all material respects, in accordance with generally accepted accounting principles. c. If the Auditor's opinion is other than unqualified, it will fully discuss the reasons with the Fund in advance. d. The procedures to be utilized by the Auditor will include tests of documentary evidence supporting the transactions recorded in the accounts, confirmation of receivables and other assets and liabilities by correspondence with creditors and banks. The Auditor shall also request written representations from the Fund's attorney, if necessary, as part of the engagement. e. At the conclusion of the examination, the Auditor will also request certain written representations from the Fund about the financial statements and related matters. 2. Performance Specifications. a. The audit shall be based primarily on the selected testing of accounting records and related data, and will involve judgment about the number of transactions to be examined and the areas to be tested. b. The Auditor shall also plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. It is understood, however, that because of the concept of reasonable assurance, and because the Auditor will not perform a detailed examination of all transactions, 2 that there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations, may exist and not be detected by the Auditor. c. The Auditor will advise the Fund, however, of any matters of that nature which come to its attention. d. The Auditor's responsibility shall be limited to the periods covered by the audit and do not extend to any losses that might be incurred during any later periods for which the Auditor was not engaged. e. The Fund will provide the Auditor with the basic information required for the audit and will be responsible for the reasonable accuracy and completeness of that information. The Auditor will advise the Fund about appropriate accounting principles in their application and will prepare the financial statement in accordance with those principles based on the information provided by the Fund. f. The auditor acknowledges that it is currently aware of all federal and state laws applicable to the Fund and agrees to staff the engagement with adequately trained and supervised personnel, as indicated in the proposal which was submitted to the Fund, subject to the Auditor's right to substitute personnel of similar competence. 3 g. It is understood that the audit is not specifically designed nor will be relied upon to disclose significant deficiencies in the design or operation of the internal control structure of the Fund. During the audit, however, should the Auditor become aware of any such reportable condition or ways in which the Auditor believes that the management practices can be improved, they shall be communicated to the Fund both verbally and in a separate letter. 3. Compensation a. The fee for the Auditor's services shall be $11,500 for the year ending 9/30/15, $12,500 for the year ending 9/30/16, and $13,500 for the year ending 9/30/17. The charge for preparation of the Fund's annual report shall be $2,000 per year. Additional services shall be billed at the rate of $150 per hour. This hourly rate shall be fixed for an initial period of three years. b. Invoices for the fees will be rendered as work progresses and are payable upon presentation. c. No. Additional charges shall be paid unless approved by the Board of Trustees, which shall not unreasonably withhold its approval upon demonstration by the Auditor of the necessity for the additional charge. 4 4. Miscellaneous a. The Auditor shall submit the final audit for approval by the Board no later than the third Friday in February of each year. In the event that the Auditor determines that the work will not be completed in a timely manner, the Auditor shall notify the Board of Trustees of the delay and the reasons therefore. b. The Auditor acknowledges that it is a fiduciary with respect to its obligations under this Agreement. c. During the term of this agreement, the Auditor shall maintain a professional malpractice insurance policy with coverage in the amount of $1,000,000. On an annual basis the Auditor shall provide proof of the required insurance coverage. d. This contract shall be governed by the laws of the State of Florida and any dispute involving the interpretation of this Agreement shall have its venue in Palm Beach County, Florida. In the event that litigation should be necessary to enforce the provisions of this Agreement, the prevailing party shall be entitled to recover costs and attorneys' fees. 5 e. This Agreement shall have a duration of three years, but may be terminated by either party, with or without cause, upon thirty (30) days' written notice. In the event that work is terminated in advance of the term of the contract, the Fund shall be responsible only for the payment of those fees incurred to the date that notice of termination is communicated. f. The Auditor agrees that it has been retained based on its present partnership and that this contract is not assignable to any other firm. FUND: CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS PENSION FUND By: Chairman Secretary AUDITOR: DAVIDSON, JAMIESON & CRISTINI, P.L. By: Richard A. Cristini, C.P.A. 6 mmENN 7...,...... .......--.-',","7",,,,„_„_.-M",.."— \ \ -...... • .,,,, ----- --.....,_ \ I - --.. --,....., \ -.... , ...., ... ___--- -,----,,,_ -------- — ---"------ ......-- ----- __.- \ - \ .." . , Z ,,, ...,- • / \ \ / N. ■ \ / / / ,,,,/ / \ \: / :\\ / / , / i .1 / / ' , r / / / / • s r / /' 'I City of Boynton Beach Firefighters I' Retirement System 1 1 1 I 1 I / I I 1 . 1 1 ' 1 1 , _ 1 ■ . - ‘ Investment Performance Review _._ 1 . , 4th Quarter 2014 1 ......._ .._ 1 . , . Th) THE , \ ., . ' OGDAHN i \ _..... __ ........ „ __ GOUP® . ,.. WWW.BOGDAHNGROUP.COM % ....., simplifying your investment and fiduciary decisions -,, - i - — - -- -- - -- — —------. , . 4-..vi,,, , a , - ‘2, - . y. : ._ , • .,,, •N„N,, ,-,,, ,,._ , rt ,, .. ,, , - , ,' _ 1, .-' , , - ,, .., .. ,,, • , , _„p,..,',, , ■ t ' 4 , , • ' --- -,,,. , .,,,,..,_ ....v jt,:kk.,...- ,% ;'- < , :,. . , •_,,,, " ' 4 - .,.!‘.?§'., •"4 , ,, / ' ,,,• ' • • ,' ,Alr; . ; e,,,r,....if' 7, ,, IA I. a i:, vo, ', - - 0 z,- 4",*;-,isii- '1 ,"--4.::. :. ---, .,,, .:- '\--,' .itirf- ..6)1 ,f,.., . 4= --t: , ', (.,.,:: - - , 2' :ft . -1'. ::' TL:.. •-:-.,--,,- 'Wf f _4, 1 ', , , ,,, ,', ,- , A i- - . - ,4 , , , - - r, - . ', '. ' • ‘. , , " '"'''''. a' .N '`,""A'a ,$1 "' nik7= • ', ,-. •. ' '',..:- ,, 'P ,, . .- ,,,, XI ' V,,, . ,'N' ..'e . '', ..5.- ,. - ..' .. '''' 1 , , , ''• . ■ "ir' ' ,= '. n 1. ,, '`..- , , "-r ' t---14,- . . *-. > ' sv, ..,, 4 : ' P . 4, .,- T ''''2,,,,C , ". , 6NN'', A. ---. l' . ,z 4,...,,Ci ,,, 3.t.%..$ , ,,,,-1.-., „, 1 .,:,.— ' — , ,, . 2 'f. , . '.. ' ' '-' ■ " - 3 " ,. , - ' ' ' '' ,-''' ''''' ' , e':' ' 5. C''' e., 7,1"". ;-''+` , ',. 71' '''' 44,1 v '5 - .I, `'.4,...-1 •'' '' '' .. -"' ''‘,.' -..• .y ' ,, , --,.,..---. , ,..0. .—,-, 4 : ,, . 1 ..,-- = - -7 - -.- 3/.. 7 -''' , 7' 14 '' ' .?", '1 . '.. - ' ....- . ''- .. ' ' , .-..' ' ''"/-• •"-"" ■ ' ' -''' 7 N ' 2 ; ' - " ''''; i '''''''' 'I" ---''"''''''':'""%"':''''''' ■ - ' 4),: r -4,3= :; '-. 0 1.-" , "` 1 W''' ; 4'..'". ,TMT.^ '''',4t1*-` ,; ,' tf.' ,-..-- rf ' -'-' ="..' . r " .,"''''''' ' ' ' " . '' 't • ." '''.,•e/ . .N . N • vi ?. ti�i 3 K ; c.4 ,.d • 4th Quarter 2014 Market Environment 1 r B OGDAHN GROUP. I TTRT1hl1C11T T - 1 1 _Q� '.4 /1 r► 1T Yl 11 AA T T TAT r Tt M • w _ _ _ � __ 3(q h � �f', �1 1 q yr E�( � 1 The Market Environment Major Market Index Performance As of December 31, 2014 Quarter Performance • The fourth quarter of 2014 provided a polar opposite experience to what was MSCI ACWxUS -3.8% seen in the third quarter. While large cap stocks greatly outperformed their MSCI EAFE -3.5o4 small cap brethren last quarter, the reversal this period was pronounced and MSCI Emerg Mkts -4.4% swift. Small caps returned between +9.4% and +10.1% during the period, which was significantly better than the +4.8% to +5.0% return within the S &P 500 MilIMI 4.9% large cap realm. However, for the year, large caps (as measured by the Russell 3000 15.2% S &P 500 Index) remained on top, exceeding mid and small caps by Russell 1000 14.9 °4 approximately 50 and 880 basis points (bps), respectively. Russell MidCap 1 5.9 Russell 2000 • The third quarter ended a streak of eight consecutive positive quarters for - - 9.7% small cap equities, but the hiccup was short- lived. Small caps, while not Barclays US Agg 1 1.8% "cheap" by relative standards, were more reasonably valued at the beginning Barclays US Govt I 1.9% of the period relative to recent history. The decline allowed many managers Barclays US TIPS 0.0% - to reinvest heavily in the fourth quarter, lifting the Russell 2000 Index +9.7% Barclays MBS I 1.8% higher. Unlike the previous two quarters, which were characterized by fits Barclays Corp IG - 1.8% and starts, all three months of the fourth quarter were positive for the major - equity indexes. Only the Russell 1000 Index, with a -0.2% return in - December, experienced a down month during the period. 3-Month T Bill o -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • Non -US equity markets underperformed domestic equity returns significantly 1 - Year Performance during the fourth quarter and ended in negative territory. Currency effects worked against US investors during the period as the USD appreciated MSCI ACWxUS -314% strongly against almost every other country's currency except China. MSCI EAFE -4.5% 1 Emerging market equities lagged developed markets by 0.9 %. For the MSCI Emerg Mkts -1.8% calendar year 2014, non -US equities drastically underperformed domestic equities. This disparity is the largest on record since 1997, when the MSCI S&P 500 11111 13 7% EAFE Index underperformed the S &P 500 Index by over 30% -after two Russell 3000 1 12.6% consecutive double -digit underperforming years in 1995 and 1996. Russell 1000 _ _ 13.2% I Russell MidCap - 13.2% • Against all expectations, with lower credit quality and the ultra short-term Russell 2000 4.9% segments being the sole exceptions, domestic bond yields continued to fall - during the fourth quarter. The trailing, one -year return for the Barclays Barclays US Agg 6.0% Aggregate Index was strongly positive ( +6.0 %). Higher quality dominated Barclays US Govt 4.9% - benchmarks (Treasuries, IG Corporates, Agency Mortgages) posted healthy Barclays US TIPS 3.q% returns. Performance dispersion across sectors was low, as Government - Bonds returned +1.9% followed by Mortgages and IG Corporates at +1.8 %. Barclays MBS 6.1% In contrast, TIPS lagged, essentially remaining flat (- 0.03 %) for the period. Barclays Cor IG 7.5% 3 -Month T -Bill 0.0% - - 10.0% , -5.0% 0.0% 5.0% 10.0% 15.0% Source: Investment Metrics THE 2 IC A BOGDAHN GROUP. 1 11 R-T11 fl Q11 T 1 1 n nv•n 11 AA TTTACT 1 r.T= AO. =•. • �+_� 1 - Q - - -- - The Market Environment Major Market Index Performance As of December 31, 2014 Quarter Performance • The fourth quarter of 2014 provided a polar opposite experience to what was MSCI ACWxUS -3.8% seen in the third quarter. While large cap stocks greatly outperformed their MSCI EAFE - 3.5 °ri I small cap brethren last quarter, the reversal this period was pronounced and MSCI Emerg Mkts -4.4% 1 ' swift. Small caps returned between +9.4% and +10.1% during the period, which was significantly better than the +4.8% to +5.0% return within the S &P 500 MINIIMIMI 4.3c i large cap realm. However, for the year, large caps (as measured by the Russell 3000 1 5.2% S &P 500 Index) remained on top, exceeding mid and small caps by Russell 1000 1 4 . 9 °�° approximately 50 and 880 basis points (bps), respectively. Russell MidCap 5.9% Russell 2000 I • The third quarter ended a streak of eight consecutive positive quarters for - 9.7% small cap equities, but the hiccup was short- lived. Small caps, while not - Barclays US Agg I 1.8% "cheap by relative standards, were more reasonably valued at the beginning Barclays US Govt I 1.9% of the period relative to recent history. The decline allowed many managers Barclays US TIPS 0.0% to reinvest heavily in the fourth quarter, lifting the Russell 2000 Index +9.7% - Barclays MBS 1 ° i° higher. Unlike the previous two quarters, which were characterized by fits Barclays Corp IG 11.s °i° and starts, all three months of the fourth quarter were positive for the major - equity indexes. Only the Russell 1000 Index, with a -0.2% return in 3 -Month T -Bill 0.0% December, experienced a d own month during the period. . -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% • Non -US equity markets underperformed domestic equity returns significantly 1 - Year Performance during the fourth quarter and ended in negative territory. Currency effects worked against US investors during the period as the USD appreciated MSCI ACWxUS -3 4% strongly against almost every other country's currency except China. MSCI EAFE -4.5% I Emerging market equities lagged developed markets by 0.9 %. For the MSCI Emerg Mkts -1.8% I� calendar year 2014, non -US equities drastically underperformed domestic equities. This disparity is the largest on record since 1997, when the MSCI S &P 500 AIMMIIMMINIMMI 13 7% EAFE Index underperformed the S &P 500 Index by over 30% -after two Russell 3000 1 12.6% consecutive double -digit underperforming years in 1995 and 1996. Russell 1000 ( 13.2{% Russell MidCap 13.2% • Against all expectations, with lower credit quality and the ultra short-term Russell 2000 - 4.9% segments being the sole exceptions, domestic bond yields continued to fall during the fourth quarter. The trailing, one -year return for the Barclays Barclays US Agg _ 6.0% Aggregate Index was strongly positive ( +6.0 %). Higher quality dominated Barclays US Govt I 4.9°%° benchmarks (Treasuries, IG Corporates, Agency Mortgages) posted healthy Barclays US TIPS 1 3.6 °i° returns. Performance dispersion across sectors was low, as Government Barclays MBS I 6.1 °i° Bonds returned +1.9% followed by Mortgages and IG Corporates at +1.8 %. 7.5% In contrast, TIPS lagged, essentially remaining flat (- 0.03 %) for the period. Barclays Cor IG - 3 -Month T -Bill 0.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 1 Source: Investment Metrics ��% THE 2 `� BOGDAHN GROUP. l TT R T 11 C1 C 1 11 T T 1 n n nor r+ r .A• T T T•T 1 -- -- - - . - - - 1 n - The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2014 Russell 1000 I •Quarter c11-Year I P dispersion during C Disc (12.4 %) 8.4% • There was wide economic sector performance dis ersion durin the fourth -� 9.8% quarter. Within large caps, Utilities, Consumer Discretionary, and Consumer 8.3% Staples posted the strongest results. On a one year basis, the strongest Consumer Staples (8.9 %) ° 16.0% 12.2 /o performers were Utilities, Health Care, Technology, and Consumer Staples, Energy (8.5 %) ° t hree of four of which are traditionally considered defensive sectors. Energy, es /° Telecom, and Materials were the only sectors with negative returns for the Financials (17.1%) 7.4% 15.0% f ourth quarter, with only Energy posting a negative return for 2014 as a whole due to a sharp drop in oil prices that began in the third quarter. H ealth Care (13.9 %) 7.9% P P P 9 q 1 25.7% 6 • Compared to large caps, small caps posted a strong quarter, but still trailed Industrials (11.1 %) 1 in all sectors over calendar year 2014. Performance for the fourth quarter as 4.9% well as calendar year 2014 was strongest in defensive sectors with Info Technology (19.1%) • .1 18.8% particularly strong results in Utilities and Health Care. Three sectors -1 .2% ; I underperformed during 2014 with the Energy sector being the largest outlier, Materials (3.7 %) 6.7% returning a disproportionate -35.9% for the year. ° -4.1% g y Telecom Services (2.3 /o) -1 2% As the broad US stock market rebounded from near -term lows, valuations U tilities (3.1 %) 12.7% • I 27.3% tended to remain elevated as compared to recent years. On a trailing P/E basis, as expected, the Russell 1000 is relatively cheaper than the Russell -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 2000. In both large and small caps, Health Care, Financial, and Technolo Russell 2000 ( ■Quarter 01 -Year) sectors look relatively overvalued, whereas Utility, Telecom, and Energy sectors appear to be among the most undervalued. Consumer Disc (13.4 %) 13.9% 2.0% • • By far the most drastic underperformance of all sectors occurred in Energy. Consumer staples (3.2 %) 12.9% 4% As mentioned above, oil prices (Brent Crude Spot Price) have plunged since - 31.8% the beginning of the third quarter, falling from a June high near $115 /barrel Energy (4.8 %) and closing the year around $56 /barrel. The cause of this drastic price Financials (24.0 %) -35.9% 9.311 5% c centers around an expanding world oil supply with lower forecasts of world oil consumption growth due to a weaker outlook for the global Health Care (13.9 %) 17.6 %° economy. 19.6 /o Industrials (13.9 %) 9.2% -0.1% � 11.8% Info Technology (17.9 %) M.% 4.8 °/ Materials (4.7 %) -2.7% 1 8.9% Telecom Services (0.8 %) 1.0% Utilities (3.4%) 1 .1% • 1 • 21.1% -40.0% -30.0% -20.0% - 10.0% 0.0% 10.0% 20.0% 30.0% � � 4 ( Source: Momingsfar Direct ' , 1 BOGDAHN GROUP ' T■ (1 T !1 fl Q 7 7 • T 1 ^ A 'ST 111 91 J♦ T T •-• - r 1 ...� -,� a.. - _ , - 1 en) __ _ ._ _ I The Market Environment GICS Sector Performance & (Sector Weight) As of December 31, 2014 Russell 1000 I ■Quarter 131 -YearI performance dispersion during C onsumer Disc (12.4 %) 8.4% • There was wide economic sector erformance dis ersion durin the fourth 1 9.8 °io quarter. Within large caps, Utilities, Consumer Discretionary, and Consumer C onsumer Staples (8.9%) a 3% Staples posted the strongest results. On a one year basis, the strongest 12.2% . 16.o °i° performers were Utilities, Health Care, Technology, and Consumer Sta Energy (8.5°/ °) ° three of four of which are traditionally considered defensive sectors. Energy, 8.6 /° Telecom, and Materials were the only sectors with negative returns for the Financials (17.1%) 4 % 1 fourth quarter, with only Energy posting a negative return for 2014 as a - 7 s °i° whole due to a sharp drop in oil prices that began in the third quarter. Health Care (13.9%) MOM - , I 25.7% I ndustrials (11.1%) 6.7% • Compared to large caps, small caps posted a strong quarter, but still trailed ( 8.9% in all sectors over calendar year 2014. Performance for the fourth quarter as Technology (19.1%) . 4.9% I nfo Techno well as calendar year 2014 was strongest in defensive sectors with particularly strong results in Utilities and Health Care. Three sectors Materials (3.7 %) -1 ° ' • I o underperformed during 2014 with the Energy sector being the largest outlier, -` . 1 6.7/0 returning a disproportionate - 35.9% for the year. -4.1% Services (2.3%) `n, 2.4% • • As the broad US stock market rebounded from near -term lows, valuations Utilities (3.1 %) 12.7% tended to remain elevated as compared to recent years. On a trailing P/E basis, as expected, the Russell 1000 is relatively cheaper than the Russell -15.0% -5.0% 5.0% 15.0% 25.o% 35.0% 2000. In both large and small caps, Health Care, Financial, and Technology Russell 2000 I ■Quarter 131 -YearI sectors look relatively overvalued, whereas Utility, Telecom, and Energy 13 90} sec appear to be among the most undervalued. Consumer Disc (13.4 %) 2.0% 12.9% • By far the most drastic underperformance of all sectors occurred in Energy. Consumer Staples (3.2 %) 112.9% W As mentioned above, oil prices (Brent Crude Spot Price) have plunged since _3 1.8% the beginning of the third quarter, falling from a June high near $115 /barrel Energy (4.8 % ) , . and closing the year around $56 /barrel. The cause of this drastic price - 35.9 ° /o 11.5% , Financials (24.0 %) 9 . 3 % change centers around an expanding world oil supply with lower forecasts of world oil consumption growth due to a weaker outlook for the global ' 17.6% Health Care (13.9 %) 19 . I 8% economy. s.2% 0 1% Industrials (13.9 %) � 11.8% Info Technology (17.9 %) I •0% 4.8% Materials (4.7 %) -2.7% r 8.9% Telecom Services ( %) 1.0% 17.1% Utilities (3.4 %) ' 7 21.1% -40.0% -30.0% -20 - 10.0% 0.0% 10.0% 20.0% 30.0% I i - CL Source: Morningstar Direct BOGDAHN 4 GROUP. ' ti T- 1 �__-_ ■ - - - TT 9 TYl !1 C1 T T 1 �r+zT*+++ •• T 1 `-' The Market Environment International and Regional Market Index Performance (Country Count) As of December 31, 2014 Quarter Performance I ■USD ❑Local Currency • The pattern of returns during the fourth quarter was similar to the prior 3.8°i° quarter, in that a moderately positive middle month was book -ended by AC World x US (45) IIMIM-1 1.2% negative months. Volatility continued to be above average during the - period. WORLD x us (22) 3 6% 1.5% -3.5% • On a regional basis, equities in Latin America turned in the worst EAFE (21) I 1 1.8% quarterly performance in both local and USD terms. In addition, Latin America was one of two regions to turn in negative performance in local Europe & ME (16) - 4.3x/0 1 0.1 /° currency terms for the 2014 calendar year, with EM EMEA being the ° other. Pacific (5) 1 2.1% 1 5.3% • The range of returns for individual non -US countries was tighter this Emerging Mkt (23) 4.4 %1 0.1 /° period, but with several negative outliers. Hong Kong ( +3.1 %) was the ° ed market performer and Turkey +11.6% was the best E EMEA (10) - 10.1% best developed p Y( ) 1 -os °i° 1 emerging market performer. The worst - performing developed country was Norway (- 24.9 %) followed by Portugal (- 23.0 %). Russia was the EM Asia (8) 0.2% -13.4% 1 2.1% equity worst-performing a uit market within the EM universe with a return of - - 32.8% for the quarter. EM Latin Amer (5) • During the fourth quarter, USD appreciation once again created a - 15.0% - 10.0% -5.0% 0.0% 5.0% significant drag on returns for US investors in overseas markets. All four 1 - Year Performance I ■USD Li Local Currency of the broad, non -US equity indices shown to the right ended the quarter in positive territory when measured in local currency terms, but turned AC World x US (45) 31.4% negative when converted to USD. The biggest exchange difference came 6.5% with the MSCI EAFE Index, which returned +1.8% in local terms and - WORLD x US (22) -3.9% ° 3.5% in USD terms. 1 6.8% -4.5 %I EAFE (21) 6.4% • USD strength again weighed on the Energy sector during the fourth quarter, as it posted the weakest sector return (- 19.8 %) by far in the Europe & ME (16) 5.5% ° MSCI- ACWIxUS Index. The Materials sector, which is also negatively 5.a /° impacted by USD strength, was the second worst performing sector Pacific (5) 1 -2.5% within the MSCI ACWIxUS Index, returning -7.5% for the quarter. In the l 8.2% developed market MSCI EAFE Index, Consumer Discretionary was the Emerging Mkt (23) -1.8% ° only sector to end the quarter in positive territory ( +3.1 %). Financials -14.7% 1 5.6/° ( +1.7 %) and Information Technology ( +1.5 %) were the only positive EM EMEA (10) sectors in the MSCI EM Index for the quarter. 3.3° 5.3% , EM Asia (8) • Growth widely outperformed value across the board. Small caps slightly _ 8 outperformed large caps within developed markets and vice versa in -12.0% Latin Amer (5) emerging markets. 1 -0.6% -15.0% -10.0% -5.0% 0.0% w 5.0% 10.0% Source: MSCI Global Index Monitor (Retums am Gross) ` THE 6 (f BO GDAHN 1 GROUP. [ T T lS ■ ■ n e I "I T T 1 n P. � T YL 1 AA T T - - r 1 : :.... a - 1 1 The Market Environment International and Regional Market Index Performance (Country Count) 1 As of December 31, 2014 Quarter Performance •USD ❑Local Currency • The pattern of returns during the fourth quarter was similar to the prior quarter, in that a moderately positive middle month was book -ended by AC World x US (45) 3.8% negative months. Volatility continued to be above average during the - 1.2% period. WORLD x US (22) *6% 1.5% • On a regional basis, equities in Latin America turned in the worst EAFE (21) -3.5% - quarterly performance in both local and USD terms. In addition, Latin I 1.8% - America was one of two regions to turn in negative performance in local Europe & ME (16) 4.3% currency terms for the 2014 calendar year, with EM EMEA being the 0.1°k other. Pacific (5) -2.1% c 5.3 °i° • The range of returns for individual non -US countries was tighter this Emerging Mkt (23) 4.4 °r° period, but with several negative outliers. Hong Kong ( +3.1 %) was the 0.1% best developed market performer and Turkey ( +11.6 %) was the best EM EMEA (10) - 10.1% emerging market performer. The worst - performing developed country 0.8% was Norway (- 24.9 %) followed by Portugal (- 23.0 %). Russia was the EM Asia (8) 0.2% ' worst - performing equity market within the EM universe with a return of - -13.4 I 2.1% 32.8% for the quarter. EM Latin Amer (5) -6.1% , • During the fourth quarter, USD appreciation once again created a -15.o% -10.o% -5.0% 0.0% 5.0% significant drag on returns for US investors in overseas markets. All four 1 - Year Performance I •USD ❑Local Currency of the broad, non -US equity indices shown to the right ended the quarter in positive territory when measured in local currency terms, but turned AC World x US (45) -3.4% negative when converted to USD. The biggest exchange difference came 6.5% with the MSCI EAFE Index, which returned +1.8% in local terms and - WORLD x US (22) 3 (_ 3.5% in USD terms. • EAFE (21) 4.5 %, • USD strength again weighed on the Energy sector during the fourth 1 6.4% quarter, as it posted the weakest sector return (- 19.8 %) by far in the -55% & ME (16) . MSCI- ACWIxUS Index. The Materials sector, which is also negatively 5.4% impacted by USD strength, was the second worst performing sector Pacific (5) -2.5% within the MSCI ACWIxUS Index, returning -7.5% for the quarter. In the 8.2% developed market MSCI EAFE Index, Consumer Discretionary was the Emerging Mkt (23) -1.8% M only sector to end the quarter in positive territory (+3.1%). Financials - 14.7% 5.6% - ( +1.7 %) and Information Technology ( +1.5 %) were the only positive EM EMEA (10) sectors in the MSCI EM Index for the quarter. 3.3 ° EM Asia (8) 5.3% • Growth widely outperformed value across the board. Small caps slightly outperformed large caps within developed markets and vice versa in -12.0% EM Latin Amer (5) ; emerging markets. os% I -15.0% - 10.0% -5.0% 0.0% 5.0% 10.0% Source: MSCI Global Index Monitor (Returns are Gross) THE 6 �� BOGDAHN (_D Tm t - -_ -- - -- - - = - - _ - - -- - - - - - - - - - -- - - - - - -- - - - - T1 9 Lilt 7 1 A. ,-. 'WY - .,,, .. t - - .- I The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of December 31, 2014 Quarter Performance • With the exception of credit sensitive segments, domestic bond markets AAA (4.9) 1.8% were mostly positive in the fourth quarter, as concerns about foreign AA (5.9) j 1.8% growth and overseas inflation trumped the effects of strong economic data. The Fed's dovish comments in the fourth quarter seemed to A (7.1) , ,, ° v` 2.3 °i° indicate no rate hikes are imminent. Given low yields abroad, foreign Baa (7.6) ' 1.3% investor interest in domestic paper remains robust and led to lower yields U.S. High Yield (4.3) -1.0 during the period. U.S. Treasury (5.6) 1; 1.9% • In contrast to the third quarter, in which sector performance was mixed, U.S. Mortgage (4.3) 1.8% most sectors posted positive returns during the period. Treasuries and U.S. Corporate IG (7.2) 11.8% mortgages rose +1.9% and +1.8 %, respectively. These strong gains U.S. TIPS (5.8) 0.0% were partially off -set by weakness in high yield ( -1.0 %) and in overseas ( - markets as the Global Aggregate x US and Multiverse indices returned - j 3.0% and -1.2 %, respectively. Aggregate (5.6) ` " , : 1 .8% Intermediate Agg (4.0) . 1.2% iii • For the second consecutive quarter, lower rated bonds lagged their Global Agg (7.3) -3.0% ss x US ( 7.3 higher quality peers. Baa -rated bonds lagged higher quality credits by 50 Multiverse (6 to 100 bps during the period. However, on a one -year basis, Baa -rated . a) 1.2 °i° " " . , bonds outpaced higher -rated credits by a moderate margin. -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 1 - Year Performance • Longer -dated securities drastically outperformed short and intermediate maturities despite the end of the Federal Reserve's QE program. The AAA (4.9) 5.9/0 rally pushed the broad -based Barclays Aggregate Index ahead of the AA (5.9) 7,-, 6.1% , Barclays Intermediate Aggregate Index by +0.6% for the quarter and ,.. ° , +1.9% for the 2014 calendar year. A (7.1) 7.5r° Baa (7.6) 8.3% • High yield bonds fell 1.0 %, marking back -to -back negative quarterly U.S. High Yield (4.3) 2.5% returns for the asset class. After exceeding investment grade bonds for U.S. Treasury (5.6) I 5.1 ° /� seven consecutive quarters up until March 31, 2014, high yield bonds trailed investment grade securities for the last nine months and were the U.S. Mortgage (4.3) - -_ _ - I 6.1% worst performing domestic sector in 2014. U.S. Corporate IG (7.2) 7; 5% li U.S. TIPS (5.8) 1 ` J 3.6% • The US bond market easily outpaced international bonds by 480 bps, 1 represented by the Barclays Global Aggregate ex US Index, which was negatively impacted by USD strength. The fourth quarter's weak Aggregate (5.6) performance by global bonds exacerbated an already wide performance Intermediate Agg (4.0) ° I 4.1% disparity as the one -year trailing domestic bond performance remained 3 /° ahead by a wide margin. Global Agg x US (7.3) Multiverse (6.4) Et 0.5% 1 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: Barclays Capital Live THE �_1 Rnc_ne_r -IN The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of December 31, 2014 Quarter Performance • With the exception of credit sensitive segments, domestic bond markets AAA (as) 1 .8% were mostly positive in the fourth quarter, as concerns about foreign AA (5 s) � i growth and overseas inflation trumped the effects of strong economic A (7.1) "'° a `'" 2.3 °i° data. The Fed's dovish comments in the fourth quarter seemed to ° indicate no rate hikes are imminent. Given low yields abroad, foreign Baa (7.6) j j 1.3% investor interest in domestic paper remains robust and led to lower yields U.S. High Yield (4.3) -1.0% i I during the period. U.S. Treasury (5.6) i l j 1.9% U.S. Mortgage (4.3) 1.8% • In contrast to the third quarter, in which sector performance was mixed, i I 1 most sectors posted positive returns during the period. Treasuries and U.S. Corporate IG (7.2) j i 11 mortgages rose +1.9% and +1.8 %, respectively. These strong gains U.S. TIPS (5.8) 1 i o.o °i° were partially off -set by weakness in high yield ( -1.0 %) and in overseas I 1 markets as the Global Aggregate x US and Multiverse indices returned - Aggregate (5.6) ( i.8 °�° 3.0% and -1.2 %, respectively. Intermediate Agg (4.0) 1.2% _NMI • For the second consecutive quarter, lower rated bonds lagged their Global Agg x US (7.3) -3.0% higher quality peers. Baa -rated bonds lagged higher quality credits by 50 Multiverse (6.4) I 1.2% to 100 bps during the period. However, on a one -year basis, Baa -rated , bonds outpaced higher -rated credits by a moderate margin. -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 1 - Year Performance • Longer -dated securities drastically outperformed short and intermediate maturities despite the end of the Federal Reserve's QE program. The AAA (4.9) IMNIMMM. 5. °%° rally pushed the broad -based Barclays Aggregate Index ahead of the AA (5.9) 6.1% Barclays Intermediate Aggregate Index by +0.6% for the quarter and A (7.1) 7 5 ° � ° +1.9% for the 2014 calendar year. Baa (7.6) ( liMOMMOMOMMI 8.3 °i° 1 • High yield bonds fell '1.0 %, marking back -to -back negative quarterly U.S. High Yield (4.3) 2.5% returns for the asset class. After exceeding investment grade bonds for U.S. Treasury (5.6) 5.1% seven consecutive quarters up until March 31, 2014, high yield bonds U.S. Mortgage (4.3) 6.1% investment grade securities for the last nine months and were the worst performing domestic sector in 2014. U.S. Corporate IG (7.2) 7,5% U.S. TIPS (5.8) 3.6% • The US bond market easily outpaced international bonds by 480 bps, represented by the Barclays Global Aggregate ex US Index, which was - ( negatively impacted by USD strength. The fourth quarter's weak A ggregate (5.6) 6.0% performance by global bonds exacerbated an already wide performance Intermediate Agg (4.0) _3.1% _ 4.1% disparity as the one -year trailing domestic bond performance remained Global Agg x US (7.3) ahead by a wide margin. I 1 Multiverse (6.4) I 0.5% 1 f -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: Barclays Capital Live � � THE 8 `� BOGDAHN GROUP. ti TT I R _T ri CI C 1 1 T T 1 n. e. x-, v., ...-. A• 1r -e- ..- • , 1 --11 I _.. Asset Allocation Summary Total Fund 1 II As of December 31. 2014 I 1, ___ I Asset Allocation By Segment as of Asset Allocation By Segment as of _ September 30, 2014 : $78,184,621 December 31, 2014 : $83,749,136 _ _ \I I 1 .."' ,..". ..... " -- , ' FAITO — — ' — ' - — ' ' Allocation ---------- ---- --------- ------ -- -- --°------- - 1 ■ ..- a. .4,........,. ...... . . -, . Segments Market Value Allocation Segments Market Value Allocation • Domestic Equity 40,676,697 52.0 • Domestic Equity 45,265,849 54.0 • International Equity 10,796,441 13.8 • International Equity 10,285,331 12.3 • Domestic Fixed Income 8,933,361 11.4 • Domestic Fixed Income 10,033,400 12.0 El Global Fixed Income 7,704,268 9.9 0 Global Fixed Income 7,585,629 9.1 • Real Estate 6,993,002 8.9 • Real Estate 7,294,442 8.7 • Private Equity 1,809,589 2.3 • Private Equity 2,084,801 2.5 it Cash 1,271,264 1.6 El Cash 1,199,683 1.4 ,i THE 10 BOGDAHN __ ___ - c2Dryr m Asset Allocation Summary Total Fund i As of December 31. 2014 Asset Allocation September 30, 2014M$78184,621f Asset December 312014 $83,7 f 49,136 it ,...: v. I t , . \ ,,,,,' 1 ; \ ,,,, 7"< ,,, , : y , \*: :: t I i „ , , Allocation Allocation a _ � �µ w_. � � ; � Market Value Allocation � Market Value � J.. Allocation • Vanguard Mid -Cap Index Fund (VMCIX) 13,770,525 17.6 • Vanguard Mid -Cap Index Fund (VMCIX) 13,987,451 16.7 • Manning & Napier Overseas (EXOSX) 10,796,441 13.8 • Anchor All Cap Value Equity 10,972,169 13.1 • Anchor All Cap Value Equity 10,507,535 13.4 • Vanguard 500 Index Signal ( VFIAX) 10,688,544 12.8 O DSM Large Cap Growth 9,334,715 11.9 • Manning & Napier Overseas (EXOSX) 10,285,331 12.3 • STW Fixed Income 7,944,675 10.2 0 DSM Large Cap Growth 10,112,333 12.1 • Vanguard 500 Index Signal (VFIAX) 7,365,174 9.4 • STW Fixed Income 7,916,161 9.5 O Intercontinental 4,491,994 5.7 0 Intercontinental 4,710,754 5.6 il PIMCO Diversified Income Fund (PDIIX) 3,890,191 5.0 F` PIMCO Diversified Income Fund (PDIIX) 3,832,746 4.6 O Templeton Global Bond Fund (FBNRX) 3,814,078 4.9 0 Templeton Global Bond Fund (FBNRX) 3,752,883 4.5 O ASB RE 2,501,008 3.2 9 ASB RE 2,583,688 3.1 • LBC Credit Partners III 1,809,589 2.3 • LBC Credit Partners III 2,084,801 2.5 0 STW TIPS 1,158,277 1.5 M Crescent Direct Lending Fund 1,200,308 1.4 • Receipt & Disbursement 774,065 1.0 0 STW TIPS 1,145,165 1.4 D Mutual Fund Cash 26,356 0.0 • Receipt & Disbursement 324,780 0.4 IN Crescent Direct Lending Fund - 0.0 0 Mutual Fund Cash 152,023 0.2 Th) THE 11 l BOGDAHN GROUP. - - - - -- - -- - - - -- - - - - - - - 1.! •;=-7;;;',.:..'.,!;:.:1:..f.:';,';,:''5,4'-',rq!,;,.:.:g=*.,'.;.'''..., .- ....': , .,.:.,. •,_ - .,•.t.:::::: - : ' ,.'...-.,,,-. ,,, - r.- 1...: Page intentiona 11 eft .., ,T. L 4 .„ 1 an k ,„A„, , 1 . . 1 - 12 . ,.. . .;. 1 Asset Allocation vs. Target Allocation Total Fund As of December 31, 2014 E ASSet Allocation versus Target Allocation e._.�..._ _ _� _ _ _ .. w_ -__... -. ' -- ° - . - -- - - -. - __ . R_ _.______._ _- . - _ _..� -__ .. _ _ _ -_ _.__.. �_ , a Vanguard 500 Index Signal (VIFSX) -• -2.2 % DSM Large Cap Growth -- 2.1% Anchor All Cap Value Equity 3.1% ' Manning & Napier Overseas (EXOSX) - -2.7 Vanguard Mid -Cap Index Fund (VMCIX) - 6.7% STW Fixed Income - -0.5 %. µ' STW TIPS ° -3.6 % j PIMCO Diversified Income Fund (PDIIX) - 1.1% j Templeton Global Bond Fund (TGBAX) to% Intercontinental - 0.6% ASB RE - -1.9 % Crescent Direct Lending Fund - -2.6 % LBC Credit Partners III - -1.5% 1 Receipt & Disbursement °° 0.4% Mutual Fund Cash - 0.2% i E i ` 9 -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0% • Allocation Differences + " Market Value Allocation ( %) Target ( %) ` k $ Vanguard 500 Index Signal (VIFSX) 10,688,544 12.8 15.0 DSM Large Cap Growth 10,112,333 12.1 Anchor All Cap Value Equity 10,972,169 13.1 10.0 Manning & Napier Overseas (EXOSX) 10,285,331 12.3 15.0 Vanguard Mid -Cap Index Fund (VMCIX) 13,987,451 16.7 10.0 1 STW Fixed Income 7,916,161 9.5 10.0 STW TIPS 1,145,165 1.4 5.0 PIMCO Diversified Income Fund (PDIIX) 3,832,746 4.6 3.5 Templeton Global Bond Fund (TGBAX) 3,752,883 4.5 3.5 Intercontinental 4,710,754 5.6 5.0 ASB RE 2,583,688 3.1 5.0 Crescent Direct Lending Fund 1,200,308 1.4 4.0 LBC Credit Partners III 2,084,801 2.5 4.0 Receipt & Disbursement 324,780 0.4 0.0 0 0 ' Mutual Fund Cash 152,023 0 . 2 I 83,749,136 100:0 Total Fund � � � 100.0 . 1 1 13 If L BOG DAHN GROUP. 1 TT 9 T n n e 1 1 T T 1 A /1 1:7 r +• T T =.T 1__ - ___ - li Asset Allocation History by Portfolio Total Fund As of December 31, 2014 Asset Allocation Attributes Dec -2014 Sep -2014 Jun -2014 .Mar -2014 Dec -2013 i ($) % ($) % ($) % ($) % ($) % Total Equity _ 56,045,827 66.92 51,774,390 66.22 50 880 364 64.56 50,252,661 __ 65.16 49,577,109 64.80 i Total Domestic Equity 45;760,496 54.64 40, 977,949 52.41 38,929,316 4939 38,676,429 50.15 _ 38,242,138 w 49.987-1 Anchor All Cap Value Equity 10,972,169 13.10 10,507,535 13.44 10,585,719 13.43 10,027,645 13.00 9,661,874 12.63 Vanguard 500 Index Signal (VFIAX) 10,688,544 12.76 7,365,174 9.42 5,812,043 7.37 6,898,537 8.95 7,124,364 9.31 . DSM Large Cap Growth 10,112,333 12.07 9,334,715 11.94 9,104,731 11.55 8,902,523 11.54 9,015,562 11.78 1 Vanguard Mid -Cap Index Fund (VMCIX) 13,987,451 16.70 13,770,525 17.61 13,426,823 17.04 12,847,724 16.66 12,440,338 16.26 Total International Equity _ 10,285,331 12.28 10,796,441 _ 13.81 11,951,048 - 15.16 11,576,232 - _ 15.01 _ 11334,970 14.81 J Manning & Napier Overseas (EXOSX) 10,285,331 12.28 10,796,441 13.81 11,951,048 15.16 11,576,232 15.01 11,334,970 14,81 - Total Fixed Income 16,646,955 19.88 16,807,220 - 21.50 17,053342 21.64 17,893,460 23.20 17,949,367 23.46 ' Total Domestic Fixed Income 9,061,325 10.82 9,102,952 11.64 9,267,930 11.76 10,367,187 13.44 10,543,348 13.78 { STW Fixed Income 7,916,161 9.45 7,944,675 10.16 8,086,977 10.26 9,220,064 11.96 9,407,390 12.30 STW TIPS 1,145,165 1.37 1,158,277 1.48 1,180,953 1.50 1,147,123 1.49 1,135,958 1.48 Total Global Fixed Income 7,585,629 9.06 7,704,268 , 9.85 7,785,312 9.88 7,526,274 9.76 7 PIMCO Diversified Income Fund (PDIIX) 3,832,746 4.58 3,890,191 4.98 3,974,277 5.04 3,814,636 4.95 3,722,546 4.87 ' Templeton Global Bond Fund (FBNRX) 3,752,883 4.48 3,814,078 4.88 3,811,036 4.84 3,711,637 4.81 3,683,473 4.81 [Total Real Estate _ -� 7,294,442 8.71 6,993,002 8.94 6,752,216 8.57 A _ P 6,602,912 µ - 8.56 6,476,416 8.46 - Intercontinental 4,710,754 5.62 4,491,994 5.75 4,336,329 5.50 4,242,241 5.50 4,171,590 5.45 ASB RE 2,583,688 3.09 2,501,008 3.20 2,415,887 3.07 2,360,671 3.06 2,304,826 3.01 pp Princeton Futures LP - 0.00 - 0.00 0.00 2,178,567 282 2,283,258 . 2.98 i ' !Total Private Equity _ 1 LBC Credit Partners III 2,084,801 2.49 1,809,589 2.31 1,543,149 1.96 - 0.00 - 0.00 Crescent Direct Lending Fund 1,200,308 1.43 - 0.00 - 0.00 - 0.00 - 0.00 I [Cash Receipt & Disbursement 324,780 0.39 774,065 0.99 2,394,991 3.04 156,403 0.20 186,996 0.24 Mutual Fund Cash 152,023 0.18 26,356 0.03 189,702 0.24 34,155 0.04 37,986 0.05 Boynton Beach Firefighters Total Fund 83,749,136 100.00 78,184,621 100.00 78,813,664 100.00 77,118,157 100.00 76,511,132 100.00 1 . 4 -2 -1 \ THE 14 B OGDAHN L_____ Asset Allocation History by Segment Total Fund October 1, 2007 To December 31, 2014 Asset Allocation Attributes 100.0 90.0 80.0 i 70.0 60.0 �r� . ' ^ " ?a : iz y .. • � '4'1 Z "/" ?. e • mss i' . . _,,�� ,: " . 4,: � , std , r p., '' o � ' ., ... , .'.-. t„k. , ':! . 5 ` • ,. n / 3 "3 � - w l'-', . m ,, „ , fi e. a,� 50 .e � ,, � " t < � ,:.aa — ,,TA n, n � { 4.4 �,. 40.0 f 30.0 1 20.0 . 10.0 e • _ _ i 9 i Y 5 .._. 9 6 i 0 0 d d 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 12/14 II Domestic Equity E International Equity ® Domestic Fixed Income ® Global Fixed Income 1. Real Estate ® Alternative Investment [111 Private Equity Cash i 15 THE r BOGDAHN �, GROUP. , 1 FF R T Yl R C 1 1 T T 1 n .n. 'VT IP% MI .. • z • i. r 1 _ _ _ - _ _ ._ _ I il Plan Sponsor TF Asset Allocation Total Fund Vs. All Public Plans -Total Fund As of December 31, 2014 68.0 1 60.0 °- 5 2.0 44.0 36.0 ° �� : ci 28.0 Y a [ 20.0 � � # f 12.0 . __� I 4.0 ;` r""b C7` i 0 r 1 -4.0 - -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash O Total Fund 54.64 (13) 12.28 (73) 10.82 (98) 9.06 (7) 3.92 (81) 8.71 (29) 0.57 (78) 5th Percentile 58.02 27.52 48.40 10.19 32.27 12.53 6.73 1st Quartile 51.00 19.45 34.05 5.23 17.22 9.20 2.27 Median 44.62 14.01 28.08 4.55 10.81 5.53 1.18 3rd Quartile 33.19 12.08 22.54 3.97 4.64 4.62 0.59 95th Percentile 19.12 8.14 13.87 1.59 1.34 2.82 0.04 I THE 16 BOGDAHN 7 - 1 11 I t-15 rn 011 L 012 rill u 1_,A THE 1 7 BOGDAHN GROUP. ,1 -- _ . 1 r il, _ - - - - -- - - -- - - - - - - -- - - -- -- _ TT T Yl (1 C 1 - 1 T T n e, 1.7 t1 r A. T T i.T 1 -- -- - _ - _ _ _ - 1 Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending December 31, 2014 Financial Reconciliation Quarter to Date I I Market Value Net Management Other Return On Market Value l 10/01/2014 Transfers Contributions Distributions Fees Expenses Investment 12/31/2014 TotalE ui ____.__ _ _ 51,774,390 _ ___2,127,074_ .r_' _ -_ ,.._'1,983 2,146,346 56 , Total Domestic E w 40,977,949 2,127,074 - -1,983 ,, 2,657,456 , 45,760496 , A AnchorAll Cap Value Equity 10,507,535 - - - - -1,049 465,683 10,972,169 Dalton All Cap Value Equity - - - - - Vanguard 500 Index Signal (VFIAX) 7,365,174 2,808,026 - - - 515,343 10,688,544 Ij DSM Large Cap Growth 9,334,715 - - - - -933 778,551 10,112,333 Vanguard Mid -Cap Index Fund (VMCIX) 13,770,525 - 680,952 - - - - 897,878 13,987,451 1 1 [Total International Equity 10,796441 - - - - 511,110 10,285,331 j Manning & Napier Overseas (EXOSX) 10,796,441 - - - - - - 511,110 10,285,331 Total Fixed Income 16,807,220 ___ 131,730 - � - -905 - 27,631 16,646,955 Total Domestic Fixed Income 9,102,952 131,730 - 905 91,008 9,061,325 j STW Fixed Income 7,944,675 -131,730 - - - -789 104,005 7,916,161 STWTIPS 1,158,277 - - - - -116 - 12,997 1,145,165 - -118 639 7,585 629 1 Total Global Fixed Income_ _.,. _s.a. 7,704,268 PIMCO Diversified Income Fund (PDIIX) 3,890,191 - re - - 57,445 3,832,746 Templeton Global Bond Fund (FBNRX) 3,814,078 - - - - - - 61,194 3,752,883 [Total Real Estate. 6,993,002 - -7,814 -7,814 309,255 L, __ 7,294,442 J Intercontinental 4,491,994 - - - - - 218,760 4,710,754 ASB RE 2,501,008 - - - -7,814 - 90,495 2,583,688 ' [Total Private Equity _____. - _ a _ 2 LBC Credit Partners III 1,809,589 246,789 - - - 28,424 2,084,801 1,200,308 Crescent Direct Lending Fund - 1,200,308 - - - - a.F. ..__._ .. _,._: _, r_..._.. a _ ®�.- ..v..._,_, ___.._gin , ..,,_ _ __ . .._ Receipt & Disbursement 774,065 - 3,572,071 4,260,336 - 1,136,695 - -880 25 324,780 Mutual Fund Cash 26,356 129,630 - - - -3,965 2 152,023 [Boynton Beach Firefighters' Total Fund - 78,184,621 4,260,336 1,136,695 " q 7, 814 P - 7,732 2,456,420 ) 83,749,186 'ItaE 1 8 " A BOGDAHN �� l� r/ - 1T m , . . . , ' - ,',. A _ , - -",,, ,_ - --- - ..,._ -', • ,_,, - -.-,,.- '' '• - ;'1' , - , Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To December 31, 2014 Financial Fiscal Yearto Date - - p ' '' - . - „ - ' , -, , :' ' ' ', - - 1? , - ''- ,'' : , , , ' , ° -- a "," ,. -7- Market Value Net Management Other Return On Market Value Contributions Distributions 10/01/2014 Transfers Fees Expenses Investment 12/31/2014 rrotal - ' -,; , ' 51,774,390 , . • ', ' 2,127,074 . „„:, „, - , ., „' .. _ -, , ,.,„ , • •-1,983- 7------ 2,146,346 , , ' 56,046,8 - 1 Total Domestic" Equity, , ' - "„ - 77 -- 4c , 2,127,074 ' • - - m - ' -,-, - , ---- - - , - ' -1,983 - , ' '',' • 2,657,456 - 1 45,760,416 Anchor All Cap Value Equity 10,507,535 - -1,049 465,683 10,972,169 Dalton All Cap Value Equity - - - - - - Vanguard 500 Index Signal (VFIAX) 7,365,174 2,808,026 - - - 515,343 10,688,544 DSM Large Cap Growth 9,334,715 - - - -933 778,551 10,112,333 Vanguard Mid-Cap Index Fund (VMCIX) 13,770,525 -680,952 - 897,878 13,987,451 - - LT°talInternati : - • , ' 10796441 ' ° • . 7; ' 7 . 7 , ... , _ §11,110: 7: 10,285;331_, „ J Manning & Napier Overseas (EXOSX) 10,796,441 - -511,110 10,2 Total FiXed IncOme - - ' ' • ' , 16,807,220 7 -131,730 ' ;:' - - 7 " - ; - , 905 - .- : ' ,16,646,955 7 j froial DordeiticFixed Income, -:::_- :9;162,952 :„_•,-: 121,730 : 1 -,; '' ,. , L i 1 , ::. i : . _,. 2 905 '91;008 9,061,325,_ J STWFixedIncome 7,944,675 -131,730 - -789 104,005 7,916,161 STW TIPS 1,158,277 - - - -116 -12,997 1,145,165 ■ rfoliiidlObaffixed Income '' , ' - 7,704,268 ,„ - „,- -,„„.1. • - „:„_:- _', ,__„, , ,---: _ ,_ ,,..„` ,„ .,7 7,585,629 PIMCO Diversified Income Fund (PDIIX) 3,890,191 - -57,445 3,832,746 Templeton Global Bond Fund (FBNRX) 3,814,078 - - - - - -61,194 3,752,883 Frota, , z„: - ' - '- 6,993,002” •.' 77 1,L ' ' ' ' ' - ' ,,,.. . 2 ' L - z. ' • -7;814 : :, , . ,,:- ' •: - -, , 499,1,05 7- Intercontinental 4,491,994 - 218,760 4,710,754 ASB RE 2,501,008 - - - - -7,814 90,495 2,583,688 P- 1.9t ir Pri g 4e E al i.. * " ' 77 - "' ,-, .4„,... rr-- ' ',,„:"_11"/.....; ' ,,,,; .;;' ''..' ';:':: ''''' ' L,,„...°"" ';'. " 1' ; ;,' '' ''''"- 7 7, 7 ,: - 7-7 - 7;:: : --,- ,',,,, 7- ,', ,,,,,,,,„ s"" ',''' „ : ': ,'.,, " - ..'',,'' t 2 ',7: % ' . ,---A; -,' , 17 ,, , , ',.,,::: , ,-•,- :, , ., Crescent Direct Lending Fund 1,200,308 - - - 1,200,308 LBC Credit Partners III 1,809,589 246,789 - - - - 28,424 2,084,801 --- Receipt & Disbursement 774,065 -3,572,071 4,260,336 -1,136,695 - -880 25 324,780 Mutual Fund Cash 26,356 129,630 - - -3,965 2 152,023 tBoyntoh,BeaCh,Oirefightero' Total Fii0 : 781846!t.. ,,,,:, „ , 1 % ,- 4,266;336 ' ,„ : z , 4,136;695 ,,, , ,..,„ ", ,. , ' :., 4 % 7,....,„ 2 7„ 7, ,::: 2,456,420 83,749,136 19 fc lunli ) . BOGDAHN GROUP. _ ___ . , T .■ . . _. _ . . . , , „ . Trrnnei 1 T T 1 n n "CT lrli Ts • A T T -•-•-r 1 I - I ...- -- - - - - . _ 1 1 I 1 . , ! Comparative Performance Trailing Returns I i Total Fund I As of December 31, 2014 1 [Comparative Performance Trailing Returns _ 1 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Total Fund (Net) _ _ 3.02 3.02 7.21 12.56 9.53 5.12 01/01/2002 J _ _ ,. _ Total Fund Policy 2.38 2.38 7.56 12.36 10.50 5.72 Difference 0.64 0.64 -0.35 0.20 -0.97 -0.60 Total Fund (Gross) 3.03 (18) 3.03 (18) 7.40 (29) 12.96 (26) 9.99 (42) 5.34 (96) 01/01/2002 Total Fund Policy 2.38 (44) 2.38 (44) 7.56 (23) 12.36 (40) 10.50 (24) 5.72 (85) Difference 0.65 0.65 -0.16 0.60 -0.51 -0.38 1 All Public Plans-Total Fund Median 2.25 2.25 6.56 12.02 9.76 6.54 [Total Equity 3.98 fiiii ----ii:4-6- 3.42 10/01/2007 _11 il , Total Equity Policy 2.93 8.38 4.97 Difference 1.05 1.05 -0.33 0.14 -0.50 -1.55 Total Domestic Equity 6.21 (19) 6.21 (19) 13.15 (18) 20.48 (36) 15.17 (37) 5.65 (58) 10/01/2007 Total Domestic Equity Policy 5.24 (33) 5.24 (33) 12.56 (23) 20.51 (35) 15.63 (28) 6.76 (36) Difference 0.97 0.97 0.59 -0.03 -0.46 -1.11 IM U.S. All Cap Equity (SA+CF+MF) Median 4.44 4.44 10.13 19.60 14.49 6.08 Total International Equity -4.73 (85) -4.73 (85) -9.26 (94) 8.92 (78) 3.40 (90) -5.11 (100) 10/01/2007 Total International Equity Policy -3.81 (58) -3.81 (58) -3.44 (27) 9.49 (65) 4.99 (56) -0.76 (42) Difference -0.92 -0.92 -5.82 -0.57 -1.59 -4.35 1 1 IM International Multi-Cap Core Equity (MF) Median -3.54 -3.54 -4.83 10.32 5.23 -1.28 1 1rl Fixed Income _ _, - ---- - -0.17 ' (100) . -0.17 (100) 340 (56) 3. (14) 4.30 (34) 4.99 _ (Ft_ 10 ■ 0 1/ 2 997 - 11 .. _ . Total Fixed Income Policy 1.00 (35) 1.00 (35) 4.04 (32) 1.91 (87) 3.79 (66) 4.46 (85) Difference -1.17 -1.17 -0.64 1.88 0.51 0.53 IM U.S. Intermediate Duration (SA+CF) Median 0.90 0.90 3.47 2.63 3.97 4.88 Total Domestic Fixed Income 1.00 (97) 1.00 (97) 4.30 (95) 2.72 (81) 4.01 (97) 4.80 (89) 10/01/2007 Total Domestic Fixed Income Policy 1.00 (97) 1.00 (97) 4.04 (97) 1.91 (100) 3.79 (99) 4.46 (96) Difference 0.00 0.00 0.26 0.81 0.22 0.34 IM U.S. Broad Market Core Fixed Income (SA+CF) Median 1.69 1.69 6.12 3.29 5.00 5.51 Total Global Fixed Income -1.54 (72) -1.54 (72) 2.43 (45) 5.93 (4) N/A 4.81 (16) 03/01/2011 BofA Merrill Lynch Global Broad Market Index -0.64 (38) -0.64 (38) 1.29 (57) 0.92 (81) 2.84 (63) 2.06 (58) Difference -0.90 -0.90 1.14 5.01 N/A 2.75 IM Global Fixed Income (MF) Median -1.05 -1.05 1.93 2.61 3.39 2.53 trotalReal Estate 4.42 (9) 4.42 (9) 13.96 (20) 14.16 (26) ' N/A 13.40 (N/A) 0510112010 1 Total Real Estate Policy 3.11 (33) 3.11 (33) 12.38 (49) 12.21 (56) 13.78 (46) 14.65 (N/A) Difference 1.31 1.31 1.58 1.95 N/A -1.25 IM U.S. Open End Private Real Estate (SA+CF) Median 2.87 2.87 12.24 12.25 13.60 N/A I Returns for periods greater than one year are annualized. Retums are expressed as percentages. Parenthesized number represents pertinent peer group ranking: 1-100, best to worst ION% THE _ 2(2_ _ _ ______ fC , , BOGDAHN _ ___....- _ __cmce.clar rp_ 4 ��' ' fet � 'i '' i r .: ,. r.. ?�Vl ,r-rt P i ' },." ; '' i ( x , Comparative Performance Trailing Returns Total Fund As of December 31, 2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Equity_ Anchor All Cap Value Equity 4.43 (45) 4.43 (45) 13.61 (12) 19.66 (48) 16.05 (35) 17.18 (45) 08/01/2009 i Russell 3000 Value Index 5.31 (27) 5.31 (27) 12.70 (16) 20.68 (37) 15.34 (49) 16.85 (52) 1 Difference -0.88 -0.88 0.91 -1.02 0.71 0.33 IM U.S. All Cap Value Equity (SA +CF) Median 4.13 4.13 9.57 19.53 15.26 16.92 Vanguard 500 Index Signal (VFIAX) 4.97 (2) 4.97 (2) 13.78 (1) 20.36 (6) 15.38 (5) 7.04 (5) 12/01/2007 S &P 500 Index 4.93 (5) 4.93 (5) 13.69 (1) 20.41 (1) 15.45 (1) 7.08 (3) Difference 0.04 0.04 0.09 -0.05 -0.07 -0.04 1 IM S &P 500 Index (MF) Median 4.81 4.81 13.17 19.87 14.91 6.60 DSM Large Cap Growth 8.34 (4) 8.34 (4) 12.21 (47) 22.88 (17) 18.07 (6) 16.80 (45) 11/01/2008 Russell 1000 Growth Index 4.78 (57) 4.78 (57) 13.05 (37) 20.26 (55) 15.81 (40) 17.33 (33) Difference 3.56 3.56 -0.84 2.62 2.26 -0.53 IM U.S. Large Cap Growth Equity (SA +CF) Median 5.10 5.10 11.88 20.50 15.26 16.59 Vanguard Mid -Cap Index Fund (VMCIX) 6.52 (29) 6.52 (29) 13.66 (10) N/A N/A 20.90 (11) 07/01/2013 CRSP U.S. Mid Cap TR Index 6.65 (25) 6.65 (25) 13.83 (8) 21.57 (13) 17.36 (3) 21.05 (10) i Difference -0.13 -0.13 -0.17 N/A N/A -0.15 IM U.S. Mid Cap Core Equity (MF) Median 5.58 5.58 9.04 19.48 15.00 17.70 jlnternational Equity _-^n .__- ___ . __ _-._ _ _ - __..,-.._ � __... ._._ Manning & Napier Overseas (EXOSX) -4.73 (85) -4.73 (85) -9.26 (94) 8.92 (78) 3.61 (88) 5.15 (80) 09/01/2009 Total International Equity Policy -3.81 (58) -3.81 (58) -3.44 (27) 9.49 (65) 4.99 (56) 5.85 (64) Difference -0.92 -0.92 -5.82 -0.57 -1.38 -0.70 IM International Multi -Cap Core Equity (MF) Median -3.54 -3.54 -4.83 10.32 5.23 6.21 Returns for periods greater than one year are annualized. Retums are expressed as percentages. g Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 21 (f BOGDAHN S GROUP. -__ J - - - - -- - _______ rr T t1 (t C 1 T T I ,. ,. 'TT „ r, . T T T..T - - .- - - _ 1 Comparative Performance Trailing Returns Total Fund As of December 31, 2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception , Date Domestic Fixed Income .. 1' STW Fixed Income 1.31 (6) 1.31 (6) 4.82 (14) 3.17 (25) 4.14 (40) 4.94 (43) 04/01/2007 STW Fixed Income Policy 1.20 (17) 1.20 (17) 4.12 (29) 2.19 (76) 3.72 (69) 4.53 (84) Difference 0.11 0.11 0.70 0.98 0.42 0.41 IM U.S. Intermediate Duration (SA +CF) Median 0.90 0.90 3.47 2.63 3.97 4.87 STWTIPS -1.12 -1.12 0.85 -0.06 2.94 3.74 11/01/2007 G Barclays U.S. Treasury: U.S. TIPS Index -0.03 -0.03 3.64 0.44 4.11 4.61 1 Difference -1.09 -1.09 -2.79 -0.50 -1.17 -0.87 Barclays U.S. TIPS 1 -10 Year -1.00 -1.00 0.91 0.03 2.78 3.73 Difference -0.12 -0.12 -0.06 -0.09 0.16 0.01 Aollal Fixed Income PIMCO Diversified Income Fund (PDIIX) -1.48 (71) -1.48 (71) 2.96 (40) 5.46 (8) N/A 5.08 (13) 03/01/2011 Barclays Global Credit (Hedged) 1.07 (9) 1.07 (9) 6.64 (7) 6.22 (3) 6.30 (13) 5.89 (6) Difference -2.55 -2.55 -3.68 -0.76 N/A -0.81 IM Global Fixed Income (MF) Median -1.05 -1.05 1.93 2.61 3.39 2.53 Templeton Global Bond Fund (FBNRX) -1.60 (73) -1.60 (73) 1.88 (51) 6.62 (2) N/A 4.67 (17) 03/01/2011 Citigroup World Government Bond -1.49 (71) -1.49 (71) -0.48 (82) -0.97 (94) 1.67 (91) 0.75 (81) Difference -0.11 -0.11 2.36 7.59 N/A 3.92 IM Global Fixed Income (MF) Median -1.05 -1.05 1.93 2.61 3.39 2.53 Retums for periods greater than one year are annualized. Retums are expressed as percentages. T Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst . -. . _. BOGDAHN -- _ �o t � ( t,. Xt14x 3 t w Comparative Performance Trailing Returns Total Fund As of December 31, 2014 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date [ [Real Estate ..- -._ w_ ___ _ _ _ _ _ _ ___ _m__._ -_ __ _ ______ .__• _.__. ._ ___,_..._,__ __r. _ . _ ___ _�_ _ _._ _._. Intercontinental 4.87 (1) 4.87 (1) 13.58 (22) 15.00 (23) N/A 13.68 (56) 04/01/2010 NCREIF ODCE 3.11 (33) 3.11 (33) 12.38 (49) 12.21 (56) 13.78 (46) 14.37 (46) Difference 1.76 1.76 1.20 2.79 N/A -0.69 IM U.S. Open End Private Real Estate (SA +CF) Median 2.87 2.87 12.24 12.25 13.60 14.08 ASB RE 3.62 (25) 3.62 (25) 13.47 (23) N/A N/A 13.27 (34) 10/01 /2012 NCREIF Fund ODCE 3.11 (33) 3.11 (33) 12.38 (49) 12.21 (56) 13.78 (46) 12.50 (50) j Difference 0.51 0.51 1.09 N/A N/A 0.77 IM U.S. Open End Private Real Estate (SA +CF) Median 2.87 2.87 12.24 12.25 13.60 12.49 Private Equity _ __. LBC Credit Partners III 1.52 1.52 N/A N/A N/A 4.66 07/01/2014 Credit Suisse Leveraged Loan Index -0.25 -0.25 2.18 5.88 5.86 -0.58 Difference 1.77 1.77 N/A N/A . N/A 5.24 Crescent Direct Lending Fund 0.00 0.00 N/A N/A N/A 0.00 11/01/2014 Credit Suisse Leveraged Loan Index -0.25 -0.25 2.18 5.88 5.86 -0.53 Difference 0.25 0.25 N/A N/A N/A 0.53 I Retums for periods greater than one year are annualized. Retums are expressed as percentages. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst ' �� B H OGDAHN 1 23 1 GROUP. _ _ ^ �T *1 71 .k e% T TAT .' -.�� _ ._ _ _ _ t ^ _ • . �I Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2014 Comparative PerformanceFtscal Year Returns __ _ __ ` . I ! Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To i' Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 1 Total Fund (Net)__ _ - 3.02 10.29 - 13.19 = ' 16.85 0 65 . 8.86 0:39 12.60 5.63 16.85_ 1 Total Fund Policy 2.38 10.72 12.75 18.44 2.17 10.00 0.55 12.37 8.29 -12.79 Difference 0.64 -0.43 0.44 -1.59 -2.82 -1.14 -0.16 0.23 -2.66 -4.06 d Total Fund (Gross) 3.03 (18) 10.56 (41) 13.73 (30) 17.43 (57) -0.15 (62) 9.37 (66) 0.75 (61) 12.71 (76) 5.63 (95) -16.85 (91) , , Total Fund Policy 2.38 (44) 10.72 (37) 12.75 (47) 18.44 (39) 2.17 (16) 10.00 (48) 0.55 (64) 12.37 (81) 8.29 (56) -12.79 (41) ' Difference 0.65 -0.16 0.98 -1.01 -2.32 -0.63 0.20 0.34 -2.66 -4.06 , All Public Plans -Total Fund Median 2.25 10.09 12.51 17.89 0.32 9.90 1.52 14.39 8.58 -13.61 Total Equity • 3.98 12 85 21.99 24.13 -4.84 11.41 - -7.70 � N/A N /A - 26.59 {' • Total Equity Policy 2.93 14.53 20.52 26.34 -2.27 10.41 -4.64 16.02 10.79 -23.02 Difference 1.05 -1.68 1.47 -2.21 -2.57 1.00 -3.06 N/A N/A -3.57 I Total Domestic Equity 6.21 (19) 17.07 (33) 22.27 (59) 27.05 (48) -1.98 (53) 13.08 (28) -8.26 (77) N/A N/A -24.14 (57) Total Domestic Equity Policy 5.24 (33) 17.76 (25) 21.60 (65) 30.20 (20) 0.55 (31) 10.96 (44) -6.15 (64) 15.89 (62) 10.79 (28) -21.77 (35) Difference 0.97 -0.69 0.67 -3.15 -2.53 2.12 -2.11 N/A N/A -2.37 IM U.S. All Cap Equity (SA +CF +MF) Median 4.44 15.37 23.46 26.74 -1.73 10.28 -4.14 17.31 8.69 -23.37 Total International Equity -4.73 (85) -0.43 (95) 20.93 (48) 15.82 (38) -13.23 (83) 2.52 (80) -4.87 (90) N/A N/A -39.20 (98) 1 Total International Equity Policy -3.81 (58) 5.22 (30) 16.98 (81) 15.04 (51) -10.42 (42) 6.90 (28) 3.80 (36) 25.38 (42) 19.65 (30) -30.13 (40) . Difference -0.92 -5.65 3.95 0.78 -2.81 -4.38 -8.67 N/A N/A -9.07 IM International Multi -Cap Core Equity (MF) Median -3.54 4.32 20.60 15.06 -11.02 4.70 1.85 24.89 18.63 -31.05 Total Fixed Income 77 7 4A0_, 0.127 8.83 ,.1.60 . 8.25 13.29 N/A N/A 0.63 9 Total Fixed Income Policy 1.00 2.55 -1.62 5.11 5.16 7.78 9.19 5.31 3.54 3.52 Difference -1.17 1.85 1.74 3.72 -3.56 0.47 4.10 N/A N/A -2.89 Total Domestic Fixed Income 1.00 (97) 3.13 (97) -0.67 (21) 5.88 (77) 3.91 (94) 8.25 (83) 13.29 (34) N/A N/A 0.63 (67) Total Domestic Fixed Income Policy 1.00 (97) 2.55 (99) -1.62 (76) 5.11 (93) 5.16 (58) 7.78 (93) 9.19 (90) 5.31 (34) 3.54 (87) 3.52 (36) Difference 0.00 0.58 0.95 0.77 -1.25 0.47 4.10 N/A N/A -2.89 IM U.S. Broad Market Core Fixed Income (SA +CF) Median 1.69 4.50 -1.28 6.60 5.26 9.20 12.30 5.15 3.86 2.55 Total Global Fixed Income -1.54 (72) 6.22 (14) 1.63 (6) 14.77 (3) N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Broad Market Index -0.64 (38) 1.45 (81) -2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84) 13.36 (58) 8.01 (44) 3.36 (24) 2.80 (14) Difference -0.90 4.77 4.28 9.67 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.05 3.57 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 i [Total Real Estate 4.42 (9) 13.91 (38) 16.37 (17) 12.16 (60)16.52 (55) N/A _ _ _ N/A N/A �_ /A N/A J Total Real Estate Policy 3.11 (33) 12.39 (69) 12.47 (68) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 18.21 (56) 17.46 (57) 3.18 (52) ' Difference 1.31 1.52 3.90 0.55 -1.75 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 2.87 12.78 13.09 12.90 16.62 6.09 -35.27 18.53 18.17 3.47 1. Returns for periods greater than one year are annualized. Retums are expressed as p ercenta g es. THE c 0.11 1 1 ) Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 2 4 ' BOGDAHN C:p CM' JP_ r-- r ' - �i 1 y. Y' , ro P �raY 3s?,1 i . i s_. r v r e..,� ak c f �� ;. r ,' . a.T" F� j -, g , _ Comparative Performance Fiscal Year Returns Total Fund 1 As of December 31, 2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Domestic Equity Anchor All Cap Value Equity 4.43 (45) 17.85 (25) 22.80 (69) 23.97 (76) 3.61 (16) 12.47 (39) N/A N/A N/A N/A Russell 3000 Value Index 5.31 (27) 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (62) 9.15 (70) -10.79 (94) 13.73 (79) 14.55 (21) -22.70 (77) Difference -0.88 0.19 0.13 -7.08 5.83 3.32 N/A N/A N/A N/A IM U.S. All Cap Value Equity (SA +CF) Median 4.13 15.40 26.39 27.72 -1.25 10.74 -3.46 17.08 11.19 -19.90 Dalton All Cap Value Equity N/A N/A N/A 22.28 (84) -5.44 (92) 17.46 (12) N/A N/A N/A N/A Russell 3000 Value Index 5.31 (27) 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (62) 9.15 (70) -10.79 (94) 13.73 (79) 14.55 (21) -22.70 (77) Difference N/A N/A N/A -8.77 -3.22 8.31 N/A N/A N/A N/A IM U.S. All Cap Value Equity (SA +CF) Median 4.13 15.40 26.39 27.72 -1.25 10.74 -3.46 17.08 11.19 -19.90 Vanguard 500 Index Signal (VFIAX) 4.97 (2) 19.76 (1) 19.31 (3) 29.99 (18) 0.99 (16) 10.16 (4) -6.80 (10) N/A N/A N/A . S &P 500 Index 4.93 (5) 19.73 (1) 19.34 (1) 30.20 (1) 1.14 (2) 10.16 (4) -6.91 (21) 16.44 (2) 10.79 (3) -21.98 (10) Difference 0.04 0.03 -0.03 -0.21 -0.15 0.00 0.11 N/A N/A N/A 1 IM S &P 500 Index (MF) 1st Quartile 4.88 19.48 19.10 29.93 0.90 9.95 -6.97 16.17 10.53 -22.13 DSM Large Cap Growth 8.34 (4) 17.22 (100) 19.76 (60) 35.68 (3) -0.82 (72) 17.48 (9) N/A N/A N/A N/A Russell 1000 Growth Index 4.78 (57) 19.15 (100) 19.27 (66) 29.19 (37) 3.78 (30) 12.65 (36) -1.85 (38) 19.35 (57) 6.04 (58) -20.88 (54) Difference 3.56 -1.93 0.49 6.49 -4.60 • 4.83 N/A N/A N/A N/A IM U.S. Large Cap Growth Equity (SA +CF) Median 5.10 34.63 20.50 27.47 1.35 11.28 -3.01 20.32 6.80 -20.37 Vanguard Mid -Cap Index Fund (VMCIX) 6.52 (29) 15.89 (15) N/A N/A N/A N/A N/A N/A N/A N/A CRSP U.S. Mid Cap TR Index 6.65 (25) 15.94 (14) 28.08 (39) 26.23 (46) -0.18 (24) 18.04 (9) -4.75 (51) 18.92 (34) 10.06 (19) -23.20 (64) Difference -0.13 -0.05 N/A N/A N/A N/A N/A N/A N/A N/A IM U.S. Mid Cap Core Equity (MF) Median 5.58 12.01 27.63 25.97 -3.36 13.55 -4.64 16.84 6.97 -21.47 International Equity Manning & Napier Overseas (EXOSX) -4.73 (85) -0.43 (95) 20.93 (48) 16.04 (35) -12.54 (75) 2.52 (80) N/A N/A N/A N/A Total International Equity Policy -3.81 (58) 5.22 (30) 16.98 (81) 15.04 (51) -10.42 (42) 6.90 (28) 3.80 (36) 25.38 (42) 19.65 (30) -30.13 (40) Difference -0.92 -5.65 3.95 1.00 -2.12 -4.38 N/A N/A N/A N/A ■ IM International Multi -Cap Core Equity (MF) Median -3.54 4.32 20.60 15.06 -11.02 4.70 1.85 24.89 18.63 -31.05 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 25 ( \ BOGDAHN `` °� GROUP. r Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 1 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 Domestic Fixed Income 1 S7W Fixed Income 1.31 (6) 3.46 (28) 0.04 (31) 5.63 (60) 3.20 (70) 8.34 (47) 14.83 (11) N/A N/A -0.36 (88) STW Fixed Income Policy 1.20 (17) 2.74 (60) -0.71 (77) 4.31 (88) 4.22 (20) 7.52 (77) 9.69 (81) 4.85 (94) 3.33 (98) 4.16 (35) Difference 0.11 0.72 0.75 1.32 -1.02 0.82 5.14 N/A N/A -4.52 IM U.S. Intermediate Duration (SA +CF) Median 0.90 2.87 -0.27 5.84 3.58 8.27 11.50 5.49 3.92 3.21 STW TIPS -1.12 0.77 -4.47 6.96 7.69 7.59 3.80 N/A N/A N/A Barclays U.S. Treasury: U.S. TIPS Index -0.03 1.59 -6.10 9.10 9.87 8.89 5.67 4.97 1.91 6.20 Difference -1.09 -0.82 1.63 -2.14 -2.18 -1.30 -1.87 N/A N/A N/A Barclays U.S. TIPS 1 -10 Year -1.00 0.61 -3.90 6.32 7.19 7.40 4.02 5.32 2.28 7.89 Difference -0.12 0.16 -0.57 0.64 0.50 0.19 -0.22 N/A N/A N/A [Global Fixed Income , PIMCO Diversified Income Fund (PDIIX) -1.48 (71) 6.09 (17) 0.35 (25) 16.25 (3) N/A N/A N/A N/A N/A N/A Barclays Global Credit (Hedged) 1.07 (9) 6.83 (9) 1.46 (9) 11.61 (7) 1.69 (49) 11.05 (31) 15.99 (25) 3.82 (82) 4.02 (11) -4.40 (78) Difference -2.55 -0.74 -1.11 4.64 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.05 3.57 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 Templeton Global Bond Fund (FBNRX) -1.60 (73) 6.35 (13) 3.52 (3) 13.25 (5) N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -1.49 (71) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 8.69 (31) 2.23 (64) 5.90 (6) Difference -0.11 6.42 8.12 9.96 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -1.05 3.57 -1.52 7.19 1.61 7.82 13.86 7.30 2.53 -1.53 Retums for periods greater than one year are annualized. Retums are expressed as percentages. T Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst , 26 ) SOGDAHN 4t 7 1C- c-'.'14/1. T`7 b ' ,, 4'.24,,,., ., J } - , , " J11 ai , - ' r - .� / ,� a +ir i t„wit .t> . .3, t+dr -f �J,, e 3 �t � tG 1 .11x . r'3 i ;-.. C, s{ 17' l p4 „p.'..._:,. N t. ',.- ' '' .,yam``7 . `', a xt 1 . ' 1 �' . '{. rt J ; Y r . 3 It Ir y r' r _ Comparative Performance Fiscal Year Returns Total Fund As of December 31, 2014 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2006 Oct -2005 Oct -2007 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2007 Sep -2006 Sep -2008 I Real Estate �_. __ -- - -• -_ -- .__�__- - . - -_ - -_ �_�w_�__ Intercontinental 4.87 (1) 14.10 (36) 18.21 (10) 12.21 (60) 16.52 (55) N/A N/A N/A N/A N/A NCREIF ODCE 3.11 (33) 12.39 (69) 12.47 (68) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 18.21 (56) 17.46 (57) 3.18 (52) Difference 1.76 1.71 5.74 0.60 -1.75 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 2.87 12.78 13.09 12.90 16.62 6.09 -35.27 18.53 18.17 3.47 ASB RE 3.62 (25) 12.85 (49) 13.20 (49) N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -ODCE (EW) (Net) 3.11 (33) 12.39 (69) 12.47 (68) 11.61 (67) 18.27 (41) 6.97 (45) -35.19 (50) 18.21 (56) 17.46 (57) 3.18 ( 52) Difference 0.51 0.46 0.73 N/A N/A N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 2.87 12.78 13.09 12.90 16.62 6.09 -35.27 18.53 18.17 3.47 1 }} Princeton Futures LP N/A N/A -10.28 N/A N/A N/A N/A N/A N /A N/A i Barclay BTOP 50 7.65 7.69 -3.91 -2.59 1.58 0.52 6.25 10.20 1.75 7.21 1 . Difference N/A N/A -6.37 N/A N/A N/A N/A N/A N/A N/A i , 'j � . - Private Equity _. , ' LBC Credit Partners III 1.52 N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Suisse Leveraged Loan Index -0.25 4.31 5.83 10.73 2.40 10.34 7.72 4.07 6.43 -7.68 Difference 1.77 N/A N/A N/A N/A N/A N/A N/A N/A N/A f Crescent Direct Lending Fund 0.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Suisse Leveraged Loan Index -0.25 4.31 5.83 10.73 2.40 10.34 7.72 4.07 6.43 -7.68 Difference 0.25 N/A N/A N/A N/A N/A N/A N/A N/A N/A ■ i 1 , I Returns for periods greater than one year are annualized. Retums are expressed as percentages. THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst 27 (� BOGDAHN GRour 1 TT [i - T n [l C 1 1 T T 1 n n NT I% rf kA T T T•r 1 •.. -' "' -- __ = - _ Performance Review Total Fund As of December 31. 2014 „�_ _ -•.-.- --- - -° - - ppprec I Market Value Management Other Income Depre . Market Financial Reconcrlration 1 Quarter Net Contributwns Distributions Fees Expenses 676 3, /2 Market Value Transfers g 1,780 it 101011 4,260 -1,137 -g Total Fund (Gross) 78,185 " 201 _ - .° _ Market Value ti - -°____- --" `_ --_` Other 1213112014 l Financial -- - Reconciliation October 1, 2014 To December 31 _ Management Income peprec. -- Net Distributions Expenses 676 83,749 Market V a l ue Contributions Fees 8 1,780 101011 Transfers -1,137 -g _ 4,260 Total Fund (Gross) 78,185 - ____ C Performance _ - , ..v 4 (Peer G uro p Analysis -All Public Plans -Total Fund _ _._° _ _ _ _. _ . _ . ___.__ _.. - $250.00 20.00 $206.09 • 6.56 --,, $200.00 - 15.00 t__ j I i � __o l __ o -® ° -- 10.00 ! �__�... $150.00 , re 1 1 -F.,--.7167--- FT-C----7-67.- ( I m 5.00 `\ 1 _ a 0.00 $100.00 -5.00 3 YR 4 YR $50.00 �� FYTD 1 YR 2 YR 9.99 (42) QTR 1 2.97 (21) 12.96 (26) 9.52 (28) 12/01 610 12104 6106 12107 6109 12/10 6/12 121 ® Total Fund (Gross) 2.38 (14) 2.38 (14) 7.46 (23) 9.77 (21) 10.50 (24) ® Total Fund Policy 2.38 (44) 2.38 (44) 7.56 (23) 12.32 (35) 12.36 (40) -- Total Fund (Gross) -- Total Fund Policy 9.76 - - - - -- i 6.56 12.02 8.85 11.78 � _______°__ ,_. �___ ^_ Median 2.25 2.25 �__ °� _ - - _ ._ _ __,._ - _ ._ °_ - -- - 1 Qtr 1 Qtr I _ _._ 1 Qtr Com parative Per formance Ending ■ ._._ _ - - 1 Qtr 1 Qtr Ending Jun L � . _._._,_,_ . ° -- --- � 1 Qtr Ending Sep - 2013 - 20 Ending Mar -2014 Dec -2013 Jun 13 Ending Jun -2014 6.06 (32) 5.18 (39) 0.22 Sep 20 (5 1.70 (51) 0.35 (38) -1.11 (50) 3.64 (50) 5.39 (60) 4.95 (49) Total Fund (Gross) 3 (36) 1.68 (52) 4 91 0.10 - 0.51 (19) 1.71 5.60 All Pub b licd Policy 1 12 3.63 All Public Plans -Total Fund Median - 7 B OGDAHN l rC i y am'" w � Gk V } r Performance Review Total Fund As of December 31. 2014 3 yr Rolling Under /Over Performance - 5 Years - 1 ;3 Yr Rollrng Percentile Ranking - 5 Years . ' 24.0 m 0.00 Over c ^ , v e 18.0 Performance e 25.00 . O • • O • c 12.0 0 0 • 0.0 • 75.00 @ O � ,� •4„ • ..�;• „•, ',47!'S-156;',- e - - - - r... "s" - ,.,,. LL + ®O O O . Under 100.00 1 I 9 9 9 1 I 1 II 1 i -12.0 Performance 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 I 9 I I I I F -16.0 - 12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Total Period 5 - 25 - Median Median - 75 - Total Fund Policy ( %) Count Count Count Count ® Total Fund (Gross) 20 0 (0 %) 6 (30 %) 9 (45 %) 5 (25 %) • Under Performance d Earliest Date X Latest Date O Total Fund Policy 20 6 (30 %) 8 (40 %) 6 (30 %) 0 (0 %) [peer Scattergram 3 Years i Peer G Scattergram 5 Years 13.12 10.80 12.80 - ® ^ 10.50 •- i ems° E 12.48 - E 10.20 °- • 12.16 - O re 9.90 - 11.84 I 9 I g 9 I - i 9.60 r - 9 9 9 r 9 9 5.70 5.85 6.00 6.15 6.30 6.45 6.60 6.75 6.90 8.10 8.19 8.28 8.37 8.46 8.55 8.64 8.73 8.82 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation @ Total Fund (Gross) 12.96 6.72 ® Total Fund (Gross) 9.99 8.57 ® Total Fund Policy 12.36 5.96 ® Total Fund Policy 10.50 8.27 - Median 12.02 6.40 - Median 9.79 8.69 l Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 1.13 107.40 114.20 -0.80 0.52 1.85 1.12 3.63 i Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.98 1.00 3.16 ?Historical Statistics 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 1.20 101.56 110.10 -0.72 -0.37 1.15 1.03 5.02 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.24 1.00 4.59 THE 29 r ) BOGDAHN GROUP. It TT R T n n c 1 1 T T I ft „ 7,T „ ,, T T.r I -- -- - - - -- - - - - _ - - - - _--- - - - - -- - -- - - - - - -- - - - -- -- - -- - = _ -- - - 4 �� Performance Review Anchor All Cap Value Equity As of December 31. 2014 !Financial Reconciliation 1 Quarter , _ L -__ _ .__ _ Market Value Net Management Other Apprec./ Market Value Income 1 10/0112014 Transfers Contributions Distributions Fees Expenses Deprec. 1 213112 01 4 Anchor All Cap Value Equity 10,508 - - - - -1 64 402 10,972 I ` I ! Financial Reconciliation October 1, 2014 To December -31, 2014 __ . ____ _ _ 1„,.... .__.�..._ �__ -__.__ - __ _� .�. _ ______ _._- _ _� - A rec./ Market Value Market Value Net Management Other Income pp 1010112014 Transfers Contributions Distributions Fees Expenses Deprec. 12131/2014 Anchor All Cap Value Equity 10,508 - - - - -1 64 402 10,972 Peer Group Analysis - IM U.S. All Ca Value Equity SA +CF Cumulative Performance ' L . m_ ..:__.. . ter_. -. _. �_ . _.__ _ ...- . $300.00 36.00 I $252.11 28.00 $250.00 20.00 . 0 1 $200.00 E i • __._-� ©_ _ ILO , ° 12.00 e 8150.00 4.00- , *' $ $100.00 -4.00 _ -12.00 $50.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 6/09 3/10 12/10 9/11 6112 3/13 12/13 12/14 O Anchor All Cap Value Equity 4.43 (45) 4.43 (45) 13.61 (12) 22.78 (37) 19.66 (48) 15.53 (35) 16.05 (35) ® Russell 3000 Value Index 5.31 (27) 5.31 (27) 12.70 (16) 22.28 (42) 20.68 (37) 15.11 (39) 15.34 (49) - Anchor All Cap Value Equity -- Russell 3000 Value Index Median 4.13 4.13 9.57 21.53 19.53 14.76 15.26 Co mparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Jun -2013 • Anchor All Cap Value Equity -0.73 (29) 5.58 (28) 3.80 (15) 8.33 (73) 5.73 (63) 1.81 (87) Russell 3000 Value Index -0.87 (33) 4.89 (51) 2.92 (32) 9.95 (40) 4.23 (90) 3.14 (62) i IM U.S. All Cap Value Equity (SA +CF) Median -1.37 4.89 2.11 9.57 6.43 3.69 THE 30 4_ BOGDAHN - __ i. 5 t A 4'�2..•Y r` - - - +, ,, Performance Review Anchor All Cap Value Equity As of December 31.2014 3Yr Rolling Under/Over Performance 5 Years 3 Yr Rolling P ercentile Ranking 5 Years= m 0.00 .._....,... -..- - - _. Over e S 24.0 - Performance • 25.00 - I7i 20.0 - 7 7. 0 e O QQ Q o -s > 16.0 - e0 c- 50.0 L ' :� .:, s' e - 'T , s' a 1 M � � - O 0 E 75.00 . .Yr & ti. z , z,- > ' _ .'3' . : �. 12.0 _ , a, - Z 0 O Under o O n Q `0 8.0 - Performance re O _ . O _O O O t 100.00 1 9 1 9 1 1 9 9 9 1 u r 1 1 1 1 1 1 1 1 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 Russell 3000 Value Index ( %) Total Period 5 - 25 25 Median Median - 75 75 - 95 Q Over Performance 0 Under Performance Count Count Count Count O Anchor All Cap Value Equity 10 1 (10 %) 7 (70 %) 2 (20 %) 0 (0 %) Earliest Date X Latest Date O Russell 3000 Value Index 20 0 (0 %) 8 (40 %) 4 (20 %) 8 (40 %) A Pe er Group Scattergram - 3 Years -1 ,Peer Group Scattergram - 5 Years 21.06 16.38 -., 20.67 - 0 - 16.12 - ee, e- 20.28 - 15.86 .- m 19.89 °+ m 15.60 - re ix I 19.50 - ® 15.34 - Co) 19.11 1 1 9 9 9 9 15.08 I 9 1 9 - _I 9 --- 7.48 7.92 8.36 8.80 9.24 9.68 10.12 10.56 10.32 11.18 12.04 12.90 13.76 14.62 15.48 16.34 Risk (Standard Deviation %) Risk (Standard Deviation %) Retum Standard Return Standard Deviation Deviation ® Anchor All Cap Value Equity 19.66 7.87 ® Anchor All Cap Value Equity 16.05 11.76 ® Russell 3000 Value Index 20.68 8.64 ® Russell 3000 Value Index 15.34 14.81 - Median 19.53 9.96 - Median 15.26 15.64 1 ;Historical Statistics - 3 Years ; Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Anchor All Cap Value Equity 3.47 87.26 65.38 3.17 -0.29 2.32 0.79 3.46 Russell 3000 Value Index 0.00 100.00 100.00 0.00 N/A 2.06 1.00 4.98 Histo rical Statistics 5`Years m ._ _.... i Tracking Up Down Information Sharpe Downside Error g Market Market Alpha Ratio Ratio Beth Risk Capture Capture Anchor All Cap Value Equity 4.28 86.47 67.82 3.82 0.07 1.42 0.77 5.74 Russell 3000 Value Index 0.00 100.00 100.00 0.00 N/A 1.12 1.00 8.07 \ THE 31 / -1 BOGDAHN GROUP. L 11 TTRTY1 lle 1 ir T 1 et .... -‘,.,- -•-% .... A • W w w • - v - 1 ... ---_ -- - - . - - - - 1 - - - -- - - - - - - - ,... i - r Performance Review Vanguard 500 Index Signal (VFIAX) i As of December 31. 2014 (Financial Reconciliation 1 Quarter - --- --- -- - ----- Market Value Net Management Other Apprec./ Market Value i Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 Vanguard 500 Index Signal (VFIAX) 7,365 2,808 - - - 59 457 10,689 'Financial Reconciliation October 1, 2014 To December 31, 2014 i Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 Vanguard 500 Index Signal (VFIAX) 7,365 2,808 - - - - 59 457 10,689 1 I [Peer Group Analysis - IM S&P 500 Index (MF) I i Performance _1 ___, i 3200 -. $200.00 $183.45 26.00 $150.00 ememieseelemi 20.00 Q Z., 14 00 -.=® 7®:„ $100.00 re 8.00 ---6 -fil-CI- $50.00 2.00 3 1 0 3 L__. 1 -4.00 $0.00 a 1 a 1 1 . QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 ® Vanguard 500 Index Signal (VFIAX) 4.97 (2) 4.97 (2) 13.78 (1) 22.70 (1) 20.36 (6) 15.47 (7) 15.38 (5) 0 S&P 500 Index 4.93 (5) 4.93 (5) 13.69 (1) 22.68 (1) 20.41 (1) 15.55 (1) 15.45 (1) - Vanguard 500 Index Signal (VFIAX) Median 4.81 4.81 13.17 22.11 19.87 15.01 14.91 S&P 500 Index ..._ bP orn arative Performance L , - , 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 Vanguard 500 Index Signal (VFIAX) 1.12 (4) 5.30 (3) 1.79 (8) 10.48 (13) 5.23 (9) 2.92 (2) S&P 500 Index 1.13 (2) 5.23 (3) 1.81 (3) 10.51 (5) 5.24 (3) 2.91 (2) IM S&P 500 Index (MF) Median 1.01 5.11 1.69 10.39 5.12 2.79 % THE 32 BO GDAHN _ _ . . . . - ----- --,.. - -- - ... o_up. _ a ' 71 � tip - -_. ..i - . -f R L fl1 -, L Performance Review Vanguard 500 Index Signal (VFIAX) As of December 31. 2014 3 Yr Rolling Under /Over Performance - 5 Years I '3 Yr Rolling Percentile Ranking - 5 Years _� =OwOO_ - O ..O 00 =00 =00=01 _'_ 30.0 Over 0.00 0 0�0��® ®�� -� � ® �� Performance .../ W e 20.0 m 25.00 - rn = Wi E y 10.0 E 50.00 - , y,7,,.71 - ,' , ,, . P ° 0.0 0 75.00 'a - r Under _ m .0 Performance re -10.0 ! 1 1 1 1 1 ! ! 1 9 100.00 1 1 1 1 1 1 1 1 I 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 S&P 500 Index ( %) Total Period 5 - 25 25 Median Median - 75 75 - 95 Q Over Performance • Under Performance Count Count Count Count ® Vanguard 500 Index Signal (VFIAX) 17 17 (100% 0 (0 %) 0 (0 %) 0 (0 %) Earliest Date X Latest Date ® S &P 500 Index 20 20 (100% 0 (0 %) 0 (0 %) 0 (0 %) Peer Group Scattergram - 3 Years + Peer Group Scattergram - 5 Years i 20.60 15.60 20.40 - ® 0 15.40 - O ilil ` 20.20 m 20.00 -• 7 15.20 -- m W w 15.00 •- 19.80 -- 19.60 I 14.80 - 1 8.97 8.98 8.99 12.88 12.89 12.90 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Standard Deviation Return Deviation ® Vanguard 500 Index Signal (VFIAX) 20.36 8.97 ® Vanguard 500 Index Signal (VFIAX) 15.38 12.89 ® S &P 500 Index 20.41 8.97 ® S &P 500 Index 15.45 12.89 - Median 19.87 8.97 - Median 14.91 12.88 ' Historical Statistics 3 Years Tracking nformation Sharpe Downside g Market Market Alpha Beta ! Error Capture Capture Ratio Ratio Risk Vanguard 500 Index Signal (VFIAX) 0.09 99.83 100.08 -0.04 -0.53 2.12 1.00 4.70 S &P 500 Index 0.00 100.00 100.00 0.00 N/A 2.12 1.00 4.69 (Historical Statistics - 5 Years e Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture 1 Vanguard 500 Index Signal (VFIAX) 0.09 99.85 100.19 -0.07 -0.71 1.17 1.00 7.48 S &P 500 Index 0.00 100.00 100.00 0.00 N/A 1.18 1.00 7.45 HIE s i i . 33 BOGDAHN GROUP. i . . ,. , _„,. TT ri Q T1'1 Cl C11 T T 1 nn 'LT r1r+ .. T TTAT 1 __ _ 1 .+ Performance Review Vanguard Mid -Cap Index Fund (VMCIX) As of December 31. 2014 1, Financial Reconciliation 1 Quarter ` - - ___ - `` __. -___ ;____- ____�- �_m_ -- - _.__________ - �- _,- .___.w _ - __a__ _ -- Other Apprec./ Market Value ______,. _ _ - Net Management Income 72 ketV 14 _ _ __� - -- -- - Market Value Contributions Distributions Fees Expenses Deprec. 1010112014 Transfers _ 176 722 13,987 Vanguard Mid -Cap Index Fund (VMCIX) 13,771 -681 (Financial Reconciliation October 1, 2014 et December 31, 2014 _ __ Apprec. Market va lue Other Net Management Income Market Value Deprec. 12/31/2014 Contributions Distributions Fees Expenses 10/01/2014 Transfers - 176 722 13,987 Vanguard Mid -Cap Index Fund (VMCIX) 13,771 -681 - - Peer Group Analysis - IM U.S. Mid Cap Core Equity (MF) _ _ _ _ - _ �'+ Cumulative Performance j $140.00 36.00 ---- $132,94 $130.00 28.00 -° $120.00 20.00 °- $110.00 re 12.00 - 1 4.00 $100.00 -- -4.00 $90.00 1 1 I 1 1 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 6/13 9/13 12/13 3/14 6/14 9/14 12/14 CI Vanguard Mid -Cap Index Fund (VMCIX) 6.52 (29) 6.52 (29) 13.66 (10) N/A N/A N/A N/A - vanguard Mid - Cap Index Fund (VMCIX) O CRSP U.S. Mid Cap TR Index 6.65 (25) 6.65 (25) 13.83 (8) 24.09 (14) 21.57 (13) 15.25 (11) 17.36 (3) ® CRSP U.S. Mid Cap TR Index I Median 5.58 5.58 9.04 21.55 19.48 12.94 15.00 Co mparative Performance -__ _ __ . _ _. _ _ . _ -- _ a _ -_ .. _ 1 Qtr 1 y Qtr 1 Qtr 1 Qtr 1 Qtr � 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2013 Jun -2013 Dec -2013 Sep -2014 Jun -2014 Mar -2014 3.27 (34) 8.62 (50) 7.69 (53) 3. N/A Vanguard Mid -Cap Index Fund (VMCIX) -1.14 (18) 4.51 (33) 8.63 (49) 7.71 (52) 2.40 (38) 1 - 1.15 (19) 4.53 (31) 3.30 (32) 2.17 CRSP U.S. Mid Cap TR Index 2 72 8.61 7.86 IM U.S. Mid Cap Core Equity (MF) Median - 2.49 3.60 34 r B OGDAHN - GROUP. - _ • 'f f ( 1 n t . Hi- DI] -)TAC Fria LI 7 1 I (--uu ION& THE 35 cc: BOGDAFIN GROUP. I 11T9T11/1 ellT ir 1 "a. oft 'NM IN .1 • a -• -w -.- • -.- 1 - - -- - - - - - - 1 ...ft - - - - - - - - -- --- - - Performance Review DSM Large Cap Growth As of December 31. 2014 Financial Reconciliation 1 Quarter .1 [.. ' . .„. ,. .• .... ... ..... - Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 DSM Large Cap Growth 9,335 - - - -1 19 760 10,112 Financial Reconciliation October 1, 2014 To December 31, 2014 . - ..... . Market Value Net Management Other Apprec./ Market Value i Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 DSM Large Cap Growth 9,335 - - -1 19 760 10,112 1 [ Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA+CF) I !Cumulative Performance 36.00 $400.00 28.00 $300.00 $293,69 -@--6- ■ ® - 1 - - -- 0- ' 20.00 - 1 t--(1)- _..../ = i I $200.00 .... r--...-- re 12.00 __ i . - 0--- $100.00 4.00 - - -4.00 $0.00 I I II I I 1 I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/08 9/09 6/10 3/11 12/11 9/12 6/13 3/14 12/14 ® DSM Large Cap Growth 8.34 (4) 8.34 (4) 12.21 (46) 23.56 (42) 22.88 (17) 16.57 (25) 18.07 (6) ® Russell 1000 Growth Index 4.78 (57) 4.78 (57) 13.05 (36) 22.84 (50) 20.26 (55) 15.59 (40) 15.81 (40) - DSM Large Cap Growth 1 ' Median 5.10 5.10 11.88 22.74 20.50 14.94 15.27 - Russell 1000 Growth Index --- - , „ - I . [Comparaiive Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 DSM Large Cap Growth 2.54 (15) 2.28 (92) -1.24 (91) 13.18 (6) 9.34 (45) 0.27 (91) Russell 1000 Growth Index 1.49 (40) 5.13 (33) 1.12 (44) 10.44 (60) 8.11 (63) 2.06 (52) IM U.S. Large Cap Growth Equity (SA+CF) Median 1.12 4.59 0.82 10.86 8.92 2.10 i - 36 11.11 THE 4--- `) BOGDAHN - - , -- - ------or fgRclir rip - - - ----- - - - - j 41 ' J s,r �-- c 3 wY ern" .3� 1g, 'q F o'"e Performance Review DSM Large Cap Growth As of December 31. 2014 l3 Yr Rolling Under /Over Performance - 5 Years p 1 9 g - 5 Years 3 Yr Rollin Percentile Rankin o.00 -_ -_- (a- r ® r 28.0 - Over c Performance a. • 0 24.0 - ® • m 25.00 O O O O o ® :® ® O®® e C7 O c • • Q 0 20.0 0 • • 0 16.0 - O ® aO G o a 50.00 ,O ' ` x ,.s r �:".," , ,,''',7.-.N.,1'• ^& ' :" ' . O O1 E 75.00 m 12.0 - F Under m w 8.0 Performance ce 3/10 9/10 3/11 9/11 3/12 9112 3/13 9/13 3/14 ! 12/14 I I 1 1 '. I ! ! I 1 ! 100.00 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 Russell 1000 Growth Index ( %) 5 -25 25- Median Median -75 75 -95 Total Period Q Over Performance • Under Performance Count Count Count Count X 0 DSM Large Cap Growth 13 9 (69 %) 3 (23 %) 1 (8 %) 0 (0 %) �i Earliest Date X Latest Date ® Russell 1000 Growth Index 20 0 (0 %) 18 (90 %) 2 (10 %) 0 (0 %) Peer Group Scattergram - 3 Years 1 Peer Group Scattergram - 5 Years 23.76 - 18.60 • -., 22.88 -- • 17.67 ^° 22.00 - c . 16.74 - m 21.12 - 2 15.81 - Q re re 20.24 - (J 14.88 - 19.36 ! 9 9 ! ! ! 13.95 ! ! ! ! ! °. 9.72 10.26 10.80 11.34 11.88 12.42 12.96 13.50 13.95 14.40 14.85 15.30 15.75 16.20 16.65 17.10 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Return Standard Return Deviation Deviation ® DSM Large Cap Growth 22.88 12.72 ® DSM Large Cap Growth 18.07 16.42 ® Russell 1000 Growth Index 20.26 10.20 ® Russell 1000 Growth Index 15.81 14.58 - Median 20.50 11.29 - Median 15.27 15.56 , [Historical Statistics - 3 Years Tracking Up Down Information Sharpe Beta Downside Error Market Market Alpha Ratio Ratio Risk Capture Capture DSM Large Cap Growth 4.57 114.80 120.10 -0.84 0.54 1.78 1.17 6.04 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 1.98 1.00 4.86 a -°- -_ .,..._ [ i 1 Historical Statistics 5 Years I Tracking Up Down Information Sharpe Beth Downside Error Market Market Alpha Ratio Ratio Risk Capture Capture � DSM Large Cap Growth 4.23 107.95 100.47 1.29 0.51 1.20 1.05 7.88 , Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 1.16 1.00 7.57 � I TH 37 t BOGDAHN ' GROUP. I i -- - ^N. TT9 T11 !7 011 T T 1 .... ..�T.. . . t r :.� 1 - -- _ _ I .� - -- __ - - - _ - _ - ___ _ - Performance Review Manning & Napier Overseas (EXOSX) As of December 31. 2014 • [Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec.l Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/31/2014 Manning & Napier Overseas (EXOSX) 10,796 - - - - - 929 -1,440 10,285 !Financial Reconciliation October 1, 2014 To December 31, 2014 , ° w. _ Market Value Net Management Other Apprec./ Market Value 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 12/3112014 I Manning & Napier Overseas (EXOSX) 10,796 - - - - - 929 -1,440 10,285 h 'Peer Group Analysis - IM International Multi - Cap Core Equity (MF) i (Cumulative Performance 1 $165.00 I • 20.00 - 1 ------ - $150.00 - ' 12.00 - e .. - r _1 t $135.00 $ 0.43 4.00 - _ _. ® " e .� .. c 7 $120.00 $ '. 9.36 re - 4.00 0 ®O r"---77. O- ' $105.00 / -12.00 - $90.00 -20.00 $75.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/09 6/10 3/11 12/11 9/12 6/13 3/14 12/14 I ® Manning & Napier Overseas (EXOSX) -4.73 (85) -4.73 (85) -9.26 (94) 4.08 (95) 8.92 (78) 2.18 (91) 3.61 (88) ® Total International Equity Policy -3.81 (58) -3.81 (58) -3.44 (27) 5.74 (69) 9.49 (65) 3.28 (67) 4.99 (56) - Manning & Napier Overseas (EXOSX) Median -3.54 -3.54 -4.83 6.88 10.32 3.92 5.23 ® Total Intemational Equity Policy k Comparative' Performance . 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Jun -2013 Manning & Napier Overseas (EXOSX) -9.66 (100) 3.24 (72) 2.13 (10) 4.54 (85) 9.59 (65) -0.90 (50) Total International Equity Policy -5.19 (28) 5.25 (7) 0.61 (44) 4.81 (79) 10.17 (49) -2.90 (84) IM International Multi -Cap Core Equity (MF) Median -5.65 3.94 0.43 5.79 10.13 -0.96 38 el THE l ). BOGDAHN c y n ' 4, sh r y. r ,,,, y' .k it n 4 £ ' 4 - - r Performance Review Manning & Napier Overseas (EXOSX) As of December 31. 2014 Yr Rolling Under /Over Performance - 5 Years [3 Yr Rolling Percentile Ranking 5 Years ] u 0.00 w Over ., • 12.0 ® Performance o e 25.00 O O' .. �...... O. .. _.. ns 0 / 0 • 8.0 - 0 ®® • Q 0 O OO m O e O u 50.00 a r n Or 5` ..; � 4.0 A 0.0 - E 7 5.00 �, i � , o � W , Z Under m X Performance re ,„ -4.0 °- 100.00 1 1 I I 1 I 1 1 1 i 1 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 Total International Equity Policy ( %) Total 5 - 25 25 Median Median - 75 75 - 95 © Over Performance • Under Performance Period Count Count Count Count O Manning & Napier Overseas (EXOSX) 10 0 (0 %) 0 (0 %) 8 (80 %) 2 (20 %) 4. Earliest Date X Latest Date O Total International Equity Policy 20 1 (5 %) 11 (55 %) 7 (35 %) 1 (5 %) eer Group Scattergram - 3 Years y nor Group Scaftergram - 5 Years v a � . i 10.81 5.94 - 10.34 - ... 5.40 -- � • 9.87 - � 4.86 m 9.40 - © m 4.32 K re 8.93 - O 3.78 8.46 I I 1 -?- I 3.24 O I I I I i n 12.48 12.74 13.00 13.26 13.52 13.78 14.04 15.84 16.20 16.56 16.92 17.28 17.64 18.00 18.36 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation O Manning & Napier Overseas (EXOSX) 8.92 13.81 O Manning & Napier Overseas (EXOSX) 3.61 17.82 O Total International Equity Policy 9.49 12.78 © Total International Equity Policy 4.99 16.31 - Median 10.32 12.67 - Median 5.23 16.60 Historical Statistics - 3 Years v _ _ Tracking Op _ y Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Manning & Napier Overseas (EXOSX) 4.35 101.51 105.78 -0.64 -0.09 0.69 1.03 9.22 Total International Equity Policy 0.00 100.00 100.00 0.00 N/A 0.77 1.00 8.47 H istor i cal Statistics 5 Years _a _.._. ' _.._ m�..__. �._ . _ _._1 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Manning & Napier Overseas (EXOSX) 4.43 103.26 110.10 -1.43 -0.24 0.29 1.06 12.39 Total International Equity Policy 0.00 100.00 100.00 0.00 N/A 0.38 1.00 10.97 I 1 THE 39 i BOGDAHN GROUP. 0 '7 •.iP., ---''' r ;• ,./.:•,r,-,-_ ----..f... -----.,.-..- ,-•••=•: • • •• ,,• • . , .- - ,, ,,,• 1 ..,-„....• • , , ,-, - ,,,,,,„. - ---,•,--.-.• . - • . - •I-- . .ri:: '--.--,.=1 .. r ''_:-.2 •, :-" '-, i;: ' .',' , l''' ,.-:-.- :, ,-, . ' : . '''' ' • . '. '- , :, ' - ',- - ' -' ' ' : .,,, ' • - • , ' -..'1 ' • - ' ' ;.F.: , '0 - i -- .',, '4 , ; L: '., , i' ,:i,` „.,." e,, ,.-.....- -,:- . '- , .-• --. , _ . ,, , .. - - . ., , ., - , , . . _ . .. . .- ' ''- ''' '' -. 1 .1 t,. •z`r - ' ', - .. -I* 2q , ;• 'i: -1 `-r- ' ' '' ' f, '7 ' . 5 . :,.•`.',.z , c '•-, ,., :..•-t .- -,.. T '5,,,,,' , t , ',,, .,` :. . , • . , .,,, _ , • ,, _ .,, ,, . -n : ,:', ' '-.. ' ' I ' . ''' ''.-- .'.- . ,, ' -,,,,' ,.,-- ' ,',. . '; -; ' -: %' . •, ... :-. ','1 ;,.",. --'1: ...: • ''... .',.`..-, -4 ", ''' ';'.. -,' ,-.' . -, ... ' 1 ; -, :. ''' :':,- ''' ',-- ' ,.:','', ,, '..', ..-. ' ; =',-. ?'' . . _ TT 9 111 /1011 T - r 1 et. ...• 'WV 11 .1 a • - w - -r- .. • -.- I --- -- -- - - - - - - - - - . - - - --- - - - - 1 --- - - - - - --------- - - -- 1 . . Performance Review STW Fixed Income As of December 31. 2014 fFinancial Reconciliation 1 Quarter - --- - - Market Value Net ontri Management Other Apprec./ Market Value Cbutions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/3112014 STW Fixed Income 7,945 -132 - - - -1 61 43 7,916 [Financial Reconciliation October 1, 2014 To December 31, 2014 . - _,. ,... Market Value Net Contributions Distribution Management Income anagement Other Apprec./ Market Value s 10101/2014 Transfers Fees Expenses Deprec. 12/31/2014 ! STW Fixed Income 7,945 -132 - - - -1 61 43 7,916 I . Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 1 [Cumulative Performance _ : -1 - _ $165.00 8.00 6.00 - - $150.00 . I , $145.30 t -- .. 1 _. i . i .141.01 0 , i 1 , 0 4.00 °- .1 $135.00 ,.. .... 0 re 1 ti!) 1 e 2.00 - $120.00 - ®-0--1 r -- o -- e ----, i ___.____ _ _ _ 0.00 - - i $105.00 - 2.00 I a a I a a QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR . $90.00 li 1 U 1 1 i 1 1 g ' ® STW Fixed Income 1.31 (6) 1.31 (6) 4.82 (14) 2.15 (16) 3.17 (25) 3.68 (32) 4.14 (40) . 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14 ® STW Fixed Income Policy 1.20 (17) 1.20 (17) 4.12 (29) 1.51 (52) 2.19 (76) 3.12 (65) 3.72 (69) - STW Fixed Income - STW Fixed Income Policy Median 0.90 0.90 3.47 1.52 2.63 3.36 3.97 Comparative erformance ._ _ _ _ _ 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 STW Fixed Income 0.23 (13) 1.50 (38) 1.70 (14) 0.00 (76) 0.84 (26) -1.79 (51) STW Fixed Income Policy 0.03 (38) 1.62 (26) 1.20 (51) -0.14 (92) 0.76 41 ( ) -1.78 (51) IM U.S. Intermediate Duration (SA+CF) Median 0.00 1.40 1.21 0.20 0.72 -1.78 i . THE 1 40 Wel /r BOGDAHN g y, Performance Review it; r ' -,,; icy • STW Fixed Income 1i 4,- " As of December 31. 2014 `3 Yr Rolling Under /Over Performance - 5 Years ;3 r Rolling Percentile Ranking 5 Years 1 12.0 .- m 0.00 - -_ Over e ' F . 10.0 p Performance rc 25.00 E o m ® , Ak• go O 8.0 - m o :::: e •- K w.� y . . ' ',,. r ;''''r - `f . + x 4.0 •1 0 0 0 0 0 0� 2.0 Under 100.00 i 1__ 1 I I I 1 1 1 1 1 Performance 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 0.0 ! 1 1 1 I 1 1 1 I 1 ! 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Total Period 5 - 25 - Median Median - 75 - STW Fixed Income Policy ( %) Count Count Count Count 8 STW Fixed Income 20 4 (20 %) 6 (30 %) 10 (50 %) 0 (0 %) 0 Over Performance 4. Earliest Date X Latest Date O STW Fixed Income Policy 20 0 (0 %) 0 (0 %) 11 (55 %) 9 (45 %) [Peer Group Scattergram - 3 Years P eer Group Scattergram - 5 Years 3.52 4.40 .- 3.20 - ® - 4.20 -- e 2.88 - e 84.00 -° m 2.56 -° � d re re 2.24 O 3.80 -- O 1.92 1 -- ! 1 1 3.60 1 °. 1 ! 1 ! 1.74 1.77 1.80 1.83 1.86 1.89 1.92 1.95 1.98 2.13 2.16 2.19 2.22 2.25 2.28 2.31 2.34 2.37 Risk (Standard Deviation %) Risk (Standard Deviation %) I Return Standard Return Standard / Deviation Deviation O STW Fixed Income 3.17 1.94 ® STW Fixed Income 4.14 2.18 O STW Fixed Income Policy 2.19 1.81 O STW Fixed Income Policy 3.72 2.19 - Median 2.63 1.88 - Median 3.97 2.33 !Historical Statistics - 3 Years - Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture STW Fixed Income 0.53 121.49 94.18 0.80 1.83 1.43 1.07 1.20 STW Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.09 1.00 1.15 ;Historical Statistics - 5 Years • I Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture STW Fixed Income 0.67 109.17 104.02 0.40 0.61 1.83 1.00 1.08 STW Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.73 1.00 1.01 41 P THE 1 9 BOGDAHN GROUP. TT g T 1r1 Cl CI 1 'S T 'w 1 1 .- I ..■ _ - - - -- -- - -- - - - - - - - - - - -_- _- -- - ■ Performance Review STWTIPS As of December 31. 2014 Fitniticial Reconciliation 1 - Quarter _ . Market Value Net Co nagement Other Apprec./ - Market Value ----1 ontributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 STW TIPS 1,158 - - _ - 3 -16 1,145 [Financial Reconciliation October 1, 2014 To December 312014 1 , Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 STWTIPS 1,158 - - 3 -16 1,145 Peer Group Analysis M U - I.S. TIPS (SA+CF) Cumulative 1 1 Performance 1...____ 8.00 $150.00 5.00 - 133.08 ZOO 0 • 5.69 0 % r Liiiiata $120.00 re -1.00 imaamesosi liatsimarnJ , $105.00 -4.00 -7.00 $90.00 I 0 0 I 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 CD STW TIPS -1.12 (94) -1.12 (94) 0.85 (94) -2.58 (55) -0.06 (97) 2.36 (72) 2.94 (73) CI BarCap U.S. Treasury: U.S. TIPS -0.03 (31) -0.03 (31) 3.64 (31) -2.68 (72) 0.44 (52) 3.57 (53) 4.11 (55) - STWTIPS Median -0.20 -0.20 3.42 -2.54 0.47 3.58 4.14 - BarCap U.S. Treasury: U.S. TIPS .., - - [Comparative Performance ' _ ___. 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 STW TIPS -1.91 2.96 0.99 - 1.20 1.03 -6.11 BarCap U.S. Treasury: U.S. TIPS -2.04 3.81 1.95 -2.00 0.70 - 7.05 % THE 42 ) B 0 GDAHN c A G 4 Performance Review STW TIPS As of December 31. 2014 Yr Rolling Under /Over Performance - 5 Years, 1 3 Yr Rolling Percentile Ranking 5 Years 12.0 x 0.00 _ -- Over • • Performance re 9.0 -. • m 25.00 - - ._ _ . e. • •• • 6,0 u 50.00 _ x. a `""�' • r ', '' . t ( )At Qs • a. 0 • 3.0 W o 0,0 - X 100.00 ® Under Performance 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 -3 9 ! ! 1 ! - 2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Total Period 5 - 25 25 Medlan Median - 75 75 - 95 BarCap U.S. Treasury: U.S. TIPS ( %) Count Count Count Count STW TIPS 17 0 (0 %) 0 (0 %) 4 (24 %) 13 (76 %) • Under Performance + Earliest Date X Latest Date 0 BarCap U.S. Treasury: U.S. TIPS 20 0 (0 %) 5 (25 %) 14 (70 %) 1 (5 %) Peer Group Scattergram - 3 Years [Peer Group Scattergram - 5 Years - 0.60 4.68 0.40 g - 4.29 -- O e. 3.90 -- E 0.20 -- ! . 3.51 • re 0.00 - © 3.12 -. O -0.20 ! ! 9 9 1 1 @ 2.73 ! 9 1 9 ! t 4.37 4.56 4.75 4.94 5.13 5.32 5.51 5.70 5.89 3.99 4.20 4.41 4.62 4.83 5.04 5.25 5.46 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Return Standard Retum Deviation Deviation O STW TIPS -0.06 4.58 0 STW TIPS 2.94 4.18 O BarCap U.S. Treasury: U.S. TIPS 0.44 5.54 0 BarCap U.S. Treasury: U.S. TIPS 4.11 5.24 - Median 0.47 5.49 - Median 4.14 5.25 Y e a r s - 7 ears Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture STW TIPS 1.88 64.77 70.31 -0.39 -0.30 -0.01 0.70 3.06 BarCap U.S. Treasury: U.S. TIPS 0.00 100.00 100.00 0.00 N/A 0.10 1.00 3.98 ,I k Histori a Statistics. 5 Years:, Trackin ... -.a UP Down Information Sharpe Downside Error g Market Market Alpha Ratio Ratio Beta Risk Capture Capture STW TIPS 1.96 70.55 69.90 0.12 -0.61 0.79 0.68 2.46 BarCap U.S. Treasury: U.S. TIPS 0.00 100.00 100.00 0.00 N/A 0.81 1.00 3.29 \ THE 43 BO GDAHN GROUP -- N. • . . • . • • I i -- TT g T 11 Ill CI lt i T - r 1 1 .- _ [ 1 -----' Performance Review PIMCO Diversified Income Fund (PDIIX) As of December 31. 2014 4 , 4 ;Financial Reconciliation 1 Quarter . _I Market Value Net Management Other Apprec./ Market Value 1 10/01/2014 Transfers Contributions Distributions Fees Expenses Income Deprec. 12131/2014 r PIMCO Diversified Income Fund (PDIIX) 3,890 - - - 249 -306 3,833 1 li 1 Fitrcaiicial Reconciliation October 1, 2014 To December 31, 2014 ._ ... .... ' .. ,i ti 1 Market Value Net Contributions Distributions Management Other Income Apprec./ Market Value 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 1 1 PIMCO Diversified Income Fund (PDIIX) 3,890 - - - 249 -306 3,833 1 41 . 1 Peer Group Analysis - IM Global Fixed Income (MF) 1 pumulative Performance 12.00 $136.00 1 $128.00 8.00 $124.56 ne / 11111' F -07 I ° $120 0.26 E .00 , .. , .. 4.00 .._(:)., P ----- ,///\‘ = $112.00 .... o , re 1 C) : 1 000 . sioa.00 - -4.00 [ $96.00 j 1 -8.00 $88.00 1 I II I 1 1 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 Ei) PIMCO Diversified Income Fund (PDIIX) -1.48 (71) -1.48 (71) 2.96 (40) 0.99 (36) 5.46 (8) N/A N/A 1 C) Barclays Global Credit (Hedged) 1.07 (9) 1.07 (9) 6.64 (7) 3.62 (6) 6.22 (3) 5.89 (7) 6.30 (13) - PIMCO Diversified Income Fund (PDIIX) Median -1.05 -1.05 1.93 0.30 2.61 2.57 3.39 - Barclays Global Credit (Hedged) Comparative Performance , r,. 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 0 Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 PIMCO Diversified Income Fund (PDIIX) -2.12 (56) 4.18 (2) 2.47 (49) 1.52 (18) 1.39 (43) -4.24 (75) il Barclays Global Credit (Hedged) 0.30 (14) 2.59 (43) 2.55 (48) 1.25 (25) 1.27 (44) -2.31 (18) I] I IM Global Fixed Income (MF) Median -1.70 2.40 2.43 0.63 0.99 -3.32 I 1 , S'N, THE ; it Tl A 11.__T 'XX r 4 y, � t h i^: r a Performance Review PIMCO Diversified Income Fund (PDIIX) As of December 31. 2014 1 3 Yr Rolling Under /Over Performance 5 Years ! 3 Yr Rolling Percentile Ranking - 5 Years Y 0.00 v 8.0 - Performance m re 25.00 0 ® 0 0 O c - I Q r O 4 0 0 E 7.0 u 50.00 l . t + x ,. f F + .: 75.00 m 5.5 •- re 100.00 1 p 1 1 1 1 9 1 1 I 1 X Under X 5.0 - Performance 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 1 ! 1 1 t 5.0 5.5 6.0 6.5 7.. 0 7.. 5 8.0 Total 5 -25 25- Median Median -75 75 -95 Period Count Count Count Count ■ Barclays Global Credit (Hedged) (%) ® PIMCO Diversified Income Fund (PDIIX) 4 4 (100 % 0 (0 %) 0 (0 %) 0 (0 %) Q Over Performance'] Earliest Date X Latest Date O Barclays Global Credit (Hedged) 20 12 (60 %) 7 (35 %) 1 (5 %) 0 (0 %) 1 Ipeer Group Scattergram - 3 Years i 'Peer Group Scattergram - 5 Years 8.00 7 .60 6.65 -• e 6.00 • 5.70 -• ' E 3 . 8 0 0 re 0 1 0 1 i i 9 1 2.85 1 1 1 9 1 1 I 2.59 2.96 3.33 3.70 4.07 4.44 4.81 5.18 5.55 3.20 3.52 3.84 4.16 4.48 4.80 5.12 5.44 5.76 Risk (Standard Deviation %) Risk (Standard Deviation %) I. Standard Return Standard Return Deviation Deviation f O PIMCO Diversified Income Fund (PDIIX) 5.46 5.13 ® PIMCO Diversified Income Fund (PDIIX) N/A N/A O Barclays Global Credit (Hedged) 6.22 3.29 O Barclays Global Credit (Hedged) 6.30 3.50 - Median 2.61 4.51 - Median 3.39 5.21 Historical Statistics 3 Years Up Down Information Sharpe Downside Tracking Market Market Alpha Be Error Ratio Ratio Risk Capture Capture PIMCO Diversified Income Fund (PDIIX) 2.51 118.56 199.26 -3.21 -0.26 1.05 1.43 3.44 Barclays Global Credit (Hedged) 0.00 100.00 100.00 0.00 N/A 1.84 1.00 1.83 Historical Statistics 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Ratio Ratio Beta Risk Error Capture Capture PIMCO Diversified Income Fund (PDIIX) N/A N/A N/A N/A N/A N/A N/A N/A Barclays Global Credit (Hedged) 0.00 100.00 100.00 0.00 N/A 1.75 1.00 1.88 THE 45 ! ) BOGDAHN GROUP. j ! TT 4 t N n A n w W. : 1 _.• _". _ - _ 1 1 Performance Review Templeton Global Bond Fund (FBNRX) As of December 31. 2014 !Financial Reconciliation 1 Quarter Market Value Net Contributions Distributions ' Management Other _ _ __ _A Apprec./ Y Market Value 10/01/2014 Transfers Fees Expenses Income Deprec. 12/31/2014 Templeton Global Bond Fund (FBNRX) 3,814 - - - - - 172 -233 3,753 Financial Reconciliation October 1, 2014 To December 31, 2014 ° � Market Value Net Contributions Distributions Management Other Apprec./ Market Value 10/01/2014 Transfers Fees Expenses Income Deprec. 12/31/2014 Templeton Global Bond Fund (FBNRX) 3,814 - - - - - 172 -233 3,753 Peer Group Analysis.- IM Global Fixed Income (MF) Cumulative Performance 1 12.00 _ _--- __ - - -- . $128.00 8.00 $120.00 I l O I` 7.44 ( I , r r 1 i r I q I 1 4.00 _ i i ` $112.00 P. ® COQ _ 0.00 H IT O • $104.00 1 r 0 (1)- � `Qi Q 2.62 e try -4.00 .. $96.00 -8.00 4 R L u $88.00 6 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 ® Templeton Global Bond Fund (FBNRX) -1.60 (73) -1.60 (73) 1.88 (51) 2.15 (17) 6.62 (2) N/A N/A ® Citigroup World Govemment Bond - 1.49 (71) -1.49 (71) -0.48 (82) -2.25 (81) -0.97 (94) 0.81 (85) 1.67 (91) - Templeton Global Bond Fund (FBNRX) Median -1.05 -1.05 1.93 0.30 2.61 2.57 3.39 ® Citigroup World Govemment Bond (Comparative Performance 1 4tr 1 Qtr 1 Qtr 1 Qtr �.. - ° - Endin � 1 Qtr - - - --- _ --- 1 Qtr 9 Ending Ending Ending Ending Ending Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Jun -2013 Templeton Global Bond Fund (FBNRX) 0.08 (15) 2.68 (41) 0.76 (95) 2.71 (1) 1.08 (49) -2.73 (30) Citigroup World Government Bond -3.78 (91) 2.27 (54) 2.66 (41) -1.09 (90) 2.88 (3) -2.97 (36) IM Global Fixed Income (MF) Median -1.70 2.40 2.43 0.63 0 -3.32 THE 46 4er BOGDAHN -4 e. ry 4 Performance Review Templeton Global Bond Fund (FBNRX) As of December 31. 2014 3 Yr Rolling r Under /Ove Performance - 5 Years I 3 Yr Rolling Percentile:Ranking - 5 Years Z Over ° m o 8 0 Perform�ann� c 25.00 O Q Q - • • • e 6.0 - c O LL a 50.00 , s , tic f i � 75.00 � �Q Q 03 2.0- 0 0 a� 0O n 5 0 0° Under 10000 @ i i 1 1 li 1 t 1 B 2 0 Performance 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 -2.0 ! 1 @ ! @ 1 1 1 I 1 - 2.0 - 1.0 0.0 1.0 2.0 30 4.0 5.0 6.0 7.0 8.0 9.0 Total 5 - 25 25 Median Median - 75 75 - 95 Citigroup World Govemment Bond ( %) Period Count Count Count Count 1 ® Templeton Global Bond Fund (FBNRX) 4 3 (75 %) 1 (25 %) 0 (0 %) 0 (0 %) 1 © Over Performance Ear liest Date pp Latest Date ® Citigroup World Government Bond 20 3 (15 %) 2 (10 %) 1 (5 %) 14 (70 %) r Peer Group Scattergram - 3 Years `Peer Group Scattergram - 5 Years • 9.00 1 3.92 3.36 -° 6.00 °° e- e- . 2.80 - 3.00 ® m 2.24 m re 0.00 + O 1.68 - 0 3.00 ( 1 1 1 9 @ 1 ! 1.12 @ 1 @ 3.30 3.85 4.40 4.95 5.50 6.05 6.60 7.15 7.70 5.20 5.22 5.24 5.26 528 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard Return Deviation Deviation ® Templeton Global Bond Fund (FBNRX) 6.62 7.03 ® Templeton Global Bond Fund (FBNRX) N/A N/A ® Citigroup World Govemment Bond -0.97 4.28 ® Citigroup World Government Bond 1.67 5.27 - Median 2.61 4.51 - Median 3.39 5.21 ■ iHistoricai Statistics 3 Years _ __. _ • Tracking l Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global Bond Fund (FBNRX) 6.61 146.84 23.85 7.49 1.14 0.94 0.66 4.32 Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A -0.22 1.00 3.36 H@ storicaIStatistics ' 5Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global Bond Fund (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A Citigroup World Government Bond 0.00 100.00 100.00 0.00 N/A 0.33 1.00 3.66 THE 47 \ BOGDAHN GROUP. !---- I - Performance Review Intercontinental As of December 31. 2 014 1Financial Reconciliation 1 Quarter Market Value Net Management Other _..__ ____ m,_ _ . � 10/01/2014 Transfers Contributions Distributions Income Apprec./ Market Value Fees Expenses Deprec. 12/3 Intercontinental 4,492 - - - - 219 4,711 711 'Financial Reconciliation October 1, 2014 To December 31, 2014 . MarketValue Net ---- __,__._._ _ . _ __ „._ _ _ ,__ . _ _ d._ . ,._v _ ._ _ 10/01/2014 Contributions Distributions Management Other Apprec./ Market Value Transfers Fees Expenses Income Deprec. 12/31/2014 Intercontinental 4,492 - I 219 4,711 ( Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) - ° �-- - 1 Cumulative Performance 25.00 __. e, 5220.00 20.00 $200.00 i $189.26 15.00 - a) I I I - -- :3.89 ® ® _ I $180.00 - c O O O p_ 10.00 - �.._ $160.00 0 re 5.00 - 1 T.� $140.00 0.00 $120.00 1 -5.00 $100.00 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 0 Intercontinental 4.87 (1) 4.87 (1) 13.58 (22) 15.35 (21) 15.00 (23) 15.30 (23) N/A $80.00 48 12.21 3 ( ) (56) 13.14 (54) 13.78 (46) /10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 0 NCREIF ODCE 3.11 (33) 3.11 (33) 12.38 (49) 12.86 Median 2.87 2.87 12.24 12.74 12.25 13.38 13.60 - Intercontinental ® NCREIF ODCE Comparative Performance • 1 Qtr 1 Qtr 1 Qtr 1 Qtr Qtr Qtr Ending Ending Ending Ending Ending 1 Qtr P Jun -2014 Mar -2014 Dec -2013 Sep-2013 undi0g Sep-2014 3.79 P Jun -2013 ( 2.42 (89) 1.89 (95) 5.35 (3) 3.66 (43) 4.35 (29) NCREIF ODCE 3.46 (45) 2.76 (63) 2.52 ( 3. IM U.S. Open End Private Real Estate (SA +CF) Median 3.35 3.18 3.23 3.23 (55) 3.37 (55) 3.67 (58) 23 3.54 3.88 '. - . 4' • , ' 4, , 3 ::1 ,,,,,-; IA,. X I 'Ii.:AI . -, (1_4:4 ki• 41 - I I --, • ' , ,'...' ‘ " ' • • ' ' ,'...:•,- ' ', ''- . 1 .,.. --'.- ! , - - =iT 4 7.a2." .. i . IF : i 7,, I -f- ' 7 ,1'j.fi i. -; t9 e I tletri ', = ,' .1 ,^ 1 , ;■: .I 'ni 7 , 1: 1 1 :.' '''''': . - . , .:. • N''.1-:.--A..-;e0!..Irlirfvf..44.W,"A.`4-,4-TAdf-`,,,,W.'.'_.'"1.: 1,4 j'. ',., . - - - - - - - 0. 0 a a ■ Performance Review Intercontinental As of December 31. 2014 1 r'a• Roiling Under/Over Performance - 5 Years 1 13 Yr Rolling Percentile Ranking - 5 Years A .. ,. . [ 18.0 0.00 Over e F performance . re - 16 0 - i , 25.00 - - - • 0 « . 0 F. Ain 0 • • 0 e 4' 0 . o ® ® ® 0 ® o 0 ,, 0 a) g• o ..2 14.0 - ;,_,'' 50. -----'---,, --- -3,. - - . --- n'''* ,....../ "■.I.V - ' -- '....111117 7 f-r7 - "Ft .. .7;. f rAparti10 - fX . V . f. • co ,,,,,, .., ••„'I ' ' 1•. "k.I..... - , '',.. , ,.',...-dial 0 ',' " ' c . . + ,, I ",..d4r „f..."..f ff...f •, f f•frIfl.%, ,;'' • f " • f'1. teff....r..1.,,:-.. kf acy -- er,L1,4: 44.44 ti 12.0 - •••' : .' ' ' 0 ° '' e Performance re I 1 100.00 41 ? 10.0 1 I I I I I I 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 16.0 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 12/14 NCREIF ODCE (%) 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count 0 Over Performance • Under Performance 0 Intercontinental 8 1 (13%) 5 (63%) 0 (0%) 2 (25%) 1 -F. Earliest Date X Latest Date 0 NCREIF ODCE 20 0 (0%) 10 (50%) 10 (50%) 0 (0%) --, _ - - • eer Group Scattergram - 3 Years 'Peer Group Scattergram - 5 Years . i . 16.15 13.86 - 15.20 - • - 13.79 - 0 , P. R.. R... c 14.25 - 13.72 - E , .2 13.30 - 1, 13.65 - w re 12.35 - 0 13.58 - 11.40 I I 1 I I I r I I I ! 0.40 0.80 1.20 1.60 2.00 2.40 2.80 3.20 1.80 2.00 2.20 2.40 2.60 2.80 3.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard Return Return Deviation Deviation O Intercontinental 15.00 2.73 0 Intercontinental N/A N/A O NCREIF ODCE 12.21 0.80 0 NCREIF ODCE 13.78 2.05 - Median 12.25 1.48 - Median 13.60 2.74 FistoriCal Statistics - 3"Yeirs" - - - -' . . ,,. __,J Up Down Tracking inforrnation Sharpe Downside Market Market Alpha Beta Error Ratio Ratio Risk Capture Capture Intercontinental 2.86 122.01 N/A 0.14 0.90 2.21 1.21 0.00 NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 2.40 1.00 0.00 ---7- [Historical Statietics - 1Y - ears Tracking Up Down Information Sharpe Downside Market Market Alpha Beta Error Ratio Ratio Risk Capture Capture , Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 2.28 1.00 0.00 I 1111.14,NS\ BOGDAHN THE 49 r ),, ---..... GROUP. I 1 --‘ 1 , . ----_ __ -- Performance Review ASB RE As of December 31. 2014 Financial Reconciliation 1 Quarter Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 ASB RE 2,501 - - - -8 - - 90 2,584 , 'Financial Reconciliation October 1, 2014 To December 31, 2014 I 1 , Market Value Net Management Other Apprec./ Market Value Contributions Distributions Income 10/01/2014 Transfers Fees Expenses Deprec. 12/31/2014 ' ASB RE 2,501 - - - -8 - - 90 2,584 rPeer Group Analysis - IM US. Open End Private Real Estate (SA+CF) . Cumulative Performance 25.00 $140.00 $132.37 20.00 $130.00 . 0.34 I 1 r --- ----- L $120.00 I . , . II Z. 10.00 re $110.00 ,-- 5.00 r- - 1 0.00 $100.00 -5.00 $90.00 ■ I I I QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 9/12 3/13 9/13 3/14 9/14 12/14 ® ASB RE 3.62 (25) 3.62 (25) 13.47 (23) 13.56 (33) N/A N/A N/A ® NCREIF Fund Index-ODCE (EW) (Net) 3.11 (33) 3.11 (33) 12.38 (49) 12.86 (48) 12.21 (56) 13.14 (54) 13.78 (46) - ASB RE 1 Median 2.87 2.87 12.24 12.74 12.25 13.38 13.60 - NCREIF Fund Index (EVV) (Net) -- .....- , iComparative Performance ... ... . . ........ - 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Sep-2014 Jun-2014 Mar-2014 Dec-2013 Sep-2013 Jun-2013 ASB RE 3.84 (22) 2.65 (75) 2.74 (58) 3.06 (63) 5.01 (11) 2.37 (87) NCREIF Fund Index (EP (Net) 3.46 (45) 2.76 (63) 2.52 (65) 3.12 (55) 3.37 (55) 3.67 (58) fh IM U.S. Open End Private Real Estate (SA+CF) Median 3.35 3.18 2.87 3.23 3.54 3.88 L_______ e THE so ir 1) BOGTIA I-IN 1 - • -• 7 . ; - • • LT; e7.7 rr7;rri r E 6c;-) t.L110)filiallid LE))1 (4-'nrti THE 51 BOGDAHN GROUP. _ _ _ -- -- - - - - -- ----- - -- -- -- - -- - -- --- - - --- - --- Historical Benchmark Hybrid Compositions Total Fund As of December 31, 2014 i ___ - - ^Total Fund Policy I Total Fixed Income Polic ___ -_ _. _ _ ' Allocation Mandate Weight ( %) Allocation Mandate Weight ( %) Jan -1979 Jan -1973 ' S &P 500 Index 65.00 Barclays Intermediate U.S. Gov /Credit Index 100.00 II , 3 Year U.S. Treasury Note 30.00 I II Citigroup 3 Month T -Bill Index 5.00 Jul-2007 Barclays Intermediate Aggregate Index 100.00 Jul -2007 1 Citigroup 3 Month T -Bill Index 5.00 Oct -2007 Barclays Intermediate Aggregate Index 35.00 Barclays Intermediate U.S. Gov /Credit Index 87.50 MSCI EAFE Index 10.00 Barclays U.S. Treasury: U.S. TIPS Index 12.50 Russell 3000 Index 50.00 1 Jun -2009 Oct -2007 Barclays Intermediate Aggregate Index 83.33 Russell 3000 Value Index 20.00 Barclays U.S. TIPS 1 -10 Year 16.67 1 Russell 1000 Growth Index 20.00 S &P 500 Index 10.00 Feb -2010 illy Barclays Intermediate Aggregate Index 35.00 Barclays Intermediate Aggregate Index 83.33 ;,I' Barclays U.S. Treasury: U.S. TIPS Index 16.67 Barclays U.S. Treasury: U.S. TIPS Index 5.00 MSCI EAFE Index 10.00 Jun -2009 Russell 3000 Index 50.00 1 Barclays Intermediate Aggregate Index 25.00 Barclays U.S. TIPS 1 -10 Year 5.00 MSCI EAFE Index 10.00 Citigroup 3 Month T -Bill Index 5.00 !STW Fixed Income Policy - , __ __ .w,.. -_.-. _ __-___ _ _ _' NCREIF Fund Index -ODCE (EW) (Net) 5.00 Allocation Mandate Weight ( %) 1 Jan -1973 Feb -2010 Barclays U.S. Gov't/Credit 100.00 Russell 3000 Index 45.00 Barclays Intermediate Aggregate Index 25.00 Jun -2007 Barclays U.S. TIPS 1 -10 Year 5.00 Barclays Intermediate Aggregate Index 100.00 MSCI AC World ex USA 15.00 NCREIF Fund Index -ODCE (EW) (Net) 10.00 Mar -2010 Russell 3000 Index 45.00 Barclays Intermediate Aggregate Index 25.00 Barclays U.S. Treasury: U.S. TIPS Index 5.00 MSCI AC World ex USA 15.00 NCREIF Fund Index -ODCE (EW) (Net) 10.00 L .____ ),I ROGDAHN . o tips Fnr v ,; 7" J � 'l �'' 1 ."`"' Historical Benchmark Hybrid Compositions + Total Fund As of December 31, 2014 { Total Equity Policy Total Domestic Equity Policy _..a d Allocation Mandate Weight ( %) Allocation Mandate Weight ( /o) Jan -1926 Jan -1926 S &P 500 Index 100.00 S &P 500 Index 100.00 Jul -2007 Jul -2007 Russell 3000 Index 85.00 Russell 3000 Index 100.00 MSCI EAFE Index 15.00 Oct -2007 Oct -2007 Russell 3000 Value Index 40.00 MSCI EAFE Index 15.00 Russell 1000 Growth Index 40.00 S &P 500 Index 15.00 S &P 500 Index 20.00 Russell 3000 Value Index 35.00 Russell 1000 Growth Index 35.00 Jun -2009 Russell 3000 Index 100.00 Jun -2009 Russell 3000 Index 83.33 16.67 MSCI EAFE Index Feb -2010 . 75.00 Russell 3000 Index MSCI AC World ex USA 25.00 -- – — - - -- °s Total International Equity Policy �._...a.___ _3 Allocation Mandate Weight ( %) Jan -1970 MSCI EAFE Index 100.00 Feb -2010 MSCI AC World ex USA 100.00 TH 53 BOGDAHN GROUP. 1 i Compliance Checklist Total Fund Boynton Beach FF As of December 31, 2014 Total Fund Compliance: ` - Yes No N/A 1. The Total Plan return equaled or exceeded the 7.8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 4. Total foreign securities were less than 25% of the total plan assets at market. ✓ Equity Compliance: - _ five ._�4_�� ___ __r__ �_.___ Yes No N/A 1. Total equity returns equaled or exceeded the benchmark over the trailing three and e year periods. ✓ 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. — —� __ _ V 3. The total equity allocation was less than 70% of the total p lan assets at market ✓ I Fixed Income Compliance: Yes 1. Total fixed income returns equaled or exceeded the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ L__ _ 1 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. ✓ - - Anchor ACV VG Mid-Cap VG 500 Index DSM LCG M&N Overseas Manager Compliance: ' , Yes No N/A Yes No . N/A Yes No N/A Yes . No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. V ./' — ' V V - 2. Manager ranked within the top 40th percentile once over the last four quarters. / ✓ ✓ ../ I ✓ 3. Less than four consecutive quarters of under - performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ 4. Three and five year down market capture ratio less than 100 %. ✓ ✓ ✓ 1 ' ✓ 5. Manager reports compliance with PFIA. ✓ ✓ ✓ _ ✓ ✓ _i_ CO *.,�_ _ ton* ore Fl -� STW TIPS - ' � PIM Temple Intercontinental Manager Compliance: Yes No N/A Yes No N Y No . N/A . Y No N /A, Y es No N/A 1. Manager outperformed the index over the trailing three and five year periods. ./ ✓ ✓ ✓$ _ ✓ 2. Manager ranked within the top 40th percentile once over the last four quarters. ✓ ✓ ✓ ✓ ✓ 3. Less than four consecutive quarters of under - performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ III 4. Three and five year down market capture ratio less than 100 %. ✓ ✓ ✓ ✓ I ✓] 5. Manager reports compliance with PFIA. ls_____ - ✓ _ ____ _ ._ . m ✓ __— _. _�1 V _�.� ✓ l *Data available for three year period only due to inception date. 54 1 j Y v — - - -- "1__ - - - -- - -- - - d ' - - - - - Compliance Checklist Total Fund As of December 31, 2014 ASB RE Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No _ NIA Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. 2. Manager ranked within the top 40th percentile once over the last four quarters. 3. Less than four consecutive quarters of under - performance relative to the benchmark. 4. Three and five year down market capture ratio less than 100 %. 5. Manager reports compliance with PFIA. __- - - - - -- — - - - i a *Data available for three year period only due to inception date. 55 1 'I The Bogdahn Group Your Service Team Contact Information Nick Rowlands Dave West ' Department: Performance Measurement I Department Consultant Team i' + l Title: Performance Analyst Title: Senior Consultant -11 t. �• ' I Direct Phone 407-520-5355 , I � +/ ! Direct, Phone 863-904-0858 1 Email: ILlickR@bogdahrigroup.com Email: DaveW@bogdahngrouo com I i II Misha Bell Service Team Contact Information Department: Consultant Team [ 1,T49 Or Orlando Road, Suite 600 -- o, Florida 32811 T . , Title: — Internal Consultant _- "" _ -" - - = Phone: f 866 - 240 -7932 Direct Phone: 863 594 -1425_ , _11 a Service Team Group Email: , ServiceTeam003 @bogdahngroup.com 5 ' ' L Email• 1 Mishab @bogdahngroup.com • I I I I Tt OGDAHN P B �`° GROUP. 56 ( r `l � , i4 1 SG '. : Z." 7 aif.Cis °'r, Fi4 'n. 1 i. t yL , tr d ,].,4 ,, c- - I t ' t t t fi v y.., - 1 r,__ 2 � 4 . . n. y - , S � f ' 4+ 1 J rt , e-...-„, W, , , t' r - i , ' ` r. y r4yp . 7 b Y 1 ,t' ° , ' i ,r j `'J 1 4 ' ;03 A . ` 4 1 ▪ � �� .�. iyJ1 t. .�.0 - T�� 9L�n a Y � ��t�r` ' ti W d ln • y r - y — -e- e _ 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 9 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. 11 ."IN) THE 57 fi BOG DAHN GROUP. -- - - - -= - -- - - -- - - - l Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from ' custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future I 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. 1 This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any • express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. i THE 58 B OGDAHN • • .``a'S'�! at i � y 1 1 1 e - 7 - - _.L --1. -- -- — - --- — - —t� �� -- - -- - -- - - --- Disclosures Total Fund As of December 31, 2014 • Returns prior to 9/30/2009 are gross of fees. } THE 59 BOG DAHN GROUP ti 1 illill THE r L. ' `� BOGDAHN ../ G ROUPO sinrplif , ing>>our investment and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago 1 Cleveland 1 Milwaukee 1 Pittsburgh -, , 1 t International Equity Manager Review 1 February 2015 il • i THE - B OGD A HN i I , . 1 . L.,........„,„, GROUP 1 W W W. B O G D A H N G RO U P. C O M siutplifying your investnient and fiduciary decisions I. — , Firm Information - Firm State Firm Name Firm City or Province Neuberger Berman International Sel Instl Neuberger Berman New York NY Transamerica Transamerica St Petersburg FL WCM WCM Investment Management Laguna Beach CA Virtus Virtus Greenfield MA EuroPacific American Funds San Francisco CA II -- __ Manning & Napier Fairport NY Manning & Napier — MSCI ACWI Ex USA GR USD Morgan Stanley Capital Intl (MSCI) New York NY I I Fund Information Annual Minimum Fund Report Long Investment Inception Investment Short Product Name Product Ticker T ype Date (Base Size Net Name ($Mil) Currency) Ratio Neuberger Berman International Sel Instl Neuberger Berman International Sel Instl NILIX Open -End Fund 10/6/2006 1,000,000 241 0.90 Transamerica Transamerica International Equity I TSWIX Open -End Fund 12/18/1992 1,000,000 1,430 0.95 WCM WCM Focused International Growth Instl WCMIX Open -End Fund 5/31/2011 100,000 949 1.08 Virtus Virtus Foreign Opportunities I JVXIX Open -End Fund 5/15/2006 100,000 1,916 1.18 EuroPacific American Funds Europacific Growth R4 REREX Open -End Fund 6/7/2002 250 123,205 0.84 Manning & Napier Manning & Napier Overseas EXOSX Open -End Fund 7/10/2002 1,000,000 2,448 0.74 ---------------- -- -- -- MSCI ACWI Ex USA GR USD MSCI ACWI Ex USA GR USD Index 12/29/2000 THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. iL BOGDA UP REREX is used for illustration purposes due to longer track record than RERGX. 1 ` � GRO V i. Virtus i s used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. IIR Tnnc11r T 1 - - -- - I Holdings Similarity – — — – -- — -- — - -- I Portfolio Date — -- L— 2_ —.. — . — _ ` -- ` 4 _— I — 5 _ — —I - — -- 1 Neuberger Be International Sel Instl I 9/30/2014 1.00 -- 2 Transamerica 9/30/2 0 .12 1.00 — _i -- 3 WCM - - 9/30/2014 0.08 0.07 1.00 - - -- - . 1_ 1'1 4 Virtus _ 9/30/2014 0.09 0.06 _ 0.19 1.00 5 EuroPacific - - - _ - - 9/30/2014 j 0.21 0.15 -.- 0.13 1 — 0.20 t 1.00 1.00 , 6 Manning &Napier — 9/30/2014 0.09 0.21 0.06 L___ _____ 0.09_ __—_ _ 23 - - --- _t 7 MSCI ACWI Ex USA GR USD 1 9/30/2014 0.11 0.15 0.05 0.09 0 30 0.10 _ 1.00 _—J _ —_ , I1 ii Holdings - Based Style Map I 0 Neuberger Berman International Sel Instl 9/30/2014 3� ,,,: k' • Transamerica 9/30/2014 1 _ , WC 9/30/ 2014 p : l � s � � V e • Virtus 9/30/2014 I • EuroPacific 9/30/2014 - • Manning & Napier 9/30/2014 1 1 i Q • MSCI ACWI Ex USA GR USD 9/30/2014 p 1 „.„,,,,,,,,, , ,,1 7,-;„ . ! 1 1 I i 1 I m E __________ __ U 1 Deep -Val Core -Val Core Core -Grth High -Grth THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. c ) BOGDA HN RERGX is used for illustration purposes due to longer track record than RERGX. 2 � GROUP Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. z Region Allocation Portfolio Date: 9/30/2014 Equity Equity Equity Equity Equity E uit E uit Equity Equity Equity Region Region Region Region Region q y q y Region Region Region Region Region Asia Asia Africa /Middle North Latin United Europe Europe Japan % Australasia % % % 0 America % America % Kingdom % dev % emrg % dev /o emrg /o East /o Neuberger Berman International Sel Instl 8.82 0.00 13.71 50.71 0.00 16.23 1.14 3.77 1.50 4.13 Transamerica 3.80 0.61 19.25 40.35 0.00 22.40 2.92 7.68 2.07 0.94 WCM 29.95 2.17 6.67 37.95 .2.40 7.39 0.00 5.35 6.52 1.61 Virtus 17.34 3.56 19.27 33.93 0.00 1.39 3.41 4.37 15.52 1.21 EuroPacific 4.50 0.54 12.46 40.28 1.54 13.61 0.45 10.98 13.55 2.10 Manning & Napier 17.93 8.46 21.50 40.30 0.00 3.80 2.61 0.01 3.89 1.49 MSCI ACWI Ex USA GR USD 7.76 3.87 15.25 32.06 1.83 15.02 5.45 8.89 7.55 2.33 GICS Sectors Portfolio Date: 9/30/2014 Energy % Materials % Industrials % Comer Consumer Healthcare % Financials % Information Telecom Utilities Discretionary nsu /o Staples /o Technology /o Services /o Neuberger Berman International Sel Instl 3.16 11.58 18.11 10.09 7.85 13.00 20.45 11.06 4.70 0.00 Transamerica 4.89 8.41 13.96 11.67 9.73 8.55 24.01 8.82 4.60 5.38 WCM 2.58 6.90 21.89 7.36 21.47 12.26 9.05 18.50 0.00 0.00 Virtus 4.75 3.55 6.68 12.19 38.63 14.39 15.01 4.25 0.00 0.55 EuroPacific 2.27 3.51 8.41 12.99 8.91 16.52 25.39 15.90 4.34 1.76 Manning & Napier 15.52 12.61 10.75 18.44 21.46 10.71 4.49 4.30 1.72 0.00 MSCI ACWI Ex USA GR USD 8.99 7.98 11.02 10.43 9.76 8.79 27.06 7.01 5.36 3.60 Market Capitalization Portfolio Date: 9/30/2014 Market Market Market Market Market j Cap Cap Cap Cap Cap 1 Giant % Large % Mid % Small % Micro % Neuberger Berman International Sel Instl 35.08 33.93 26.66 0.00 0.00 ' Transamerica 35.91 38.40 22.68 0.00 0.12 ' WCM 46.76 29.20 22.27 0.00 0.00 I I Virtus 65.58 22.76 7.92 0.97 0.00 l EuroPacific 51.65 29.85 4.22 0.00 0.00 MSCI ACWI Ex USA GR USD 55.33 33.85 9.36 0.08 0.01 THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. U BOG I , REREX is used for illustration purposes due to longer track record than RERGX. 3 ` � �7ROT m Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. V 1. 1 ill I L T rf n e11 T I - =- _= - I Returns I As of Date: 12/31/2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD _ - -- �- - I 16 LI - -- - -. ._ - - -- - -_ I- - - _ - -_._. - - I - ol 111 12.0 - -- ! - -- - - i � 10.0 -- - - - - j - - i - - -- - - _--- -- # rx 1 Y I " ` 7 I _ 1 i S ' ? i j w* t r% I I i f.- S e 1 1 $m f h 1 s i : ,Il $ . : ! * 1 t 4 2.0 I fi t i I , 0.0 - ----- - - Eas - m' -2.0 -I 1- p Til ! _l IT.I___Fi 1 ,.. , _____ _____________ _____ 1 1 -4.0 -- --- -- ---- ---- ' - c = __._____ __ __ . , _ _ . . __.__„_________._. d____ _____________ - 10.0 + --1--- _ - -- { Q tr (YTD 1 Year 2 Years i Years A Years 5 Years p Years 17 Years 8 Years Neuberger Berman International Sel Instt in Transamerica WCM imi Virtus i -- 3 E uroPacific m Manning & Napier = MSCI ACWI Ex USA GR USD I I 1 Trailing Returns As of Date: 12/31/2014 Data Point: Return Calculation Benchmark: MSCI ACWI Ex USA GR USD Qtr YTD 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 1 Neuberger Berman International Sel Instl 0.13 -2.90 -2.90 6.71 9.83 4.10 6.22 10.43 0.46 1.43 Transamerica -3.55 -4.45 -4.45 9.52 13.37 7.43 8.41 11.62 1.84 3.03 I WCM -0.05 -0.30 -0.30 10.16 10.93 6.40 9.62 14.81 6.12 8.09 Virtus -0.64 2.63 2.63 4.15 9.24 6.97 8.14 10.42 0.80 2.94 EuroPacific -1.72 -2.66 -2.66 8.15 11.72 4.77 5.68 10.63 1.24 3.29 1 Manning & Napier -4.73 -9.26 -9.26 4.08 8.92 2.19 3.61 8.88 -0.34 1.77 MSCI ACWI Ex USA GR USD -3.81 -3.44 -3.44 5.74 9.49 3.27 4.89 10.34 -0.17 1.84 THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. c � BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 4 GROUP. Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. i . ,- . •.. . . , _ - Returns Calculation Benchmark: MSCI ACVVI Ex USA GR USD 45.0 I i 1 I 37.5 - 30.0 L III- 1i 1111 i 22.5 r-- ■ , ... . i I 1 1 15.0 , I I I I -1 I H , 1111 I I I I g _ I ' ..., , - 15.0 -22.5 - 30.0 1 I . - I I, - ---- - ------- i -37.5 1 --- L i I 1 1 . ca') 52.5 j ' 1 iL -- i - 1 2014 2013 2012 2011 2010 2009 2008 2007 1 i 1 1 i E:71 Neuberger Berman International Sel Instl PM Transamerica ,.. ,. WCM m Virtus 7 EuroPacific m Manning & Napier mom MSCI ACVVI Ex USA GR USD Calendar Year Returns Data Point: Return Calculation Benchmark: MSCI ACWI Ex USA GR USD 2014 2013 2012 2011 2010 2009 2008 2007 Neuberger Berman International Sel Instl -2.90 17.27 16.33 -11.36 15.14 34.13 -43.05 8.52 Transamerica -4.45 25.53 21.48 -8.59 12.42 29.13 -41.23 11.75 WCM -0.30 21.72 12.47 -6.10 23.51 44.66 -33.82 22.97 Virtus 2.63 5.69 20.17 0.44 12.96 22.58 -41.68 19.29 EuroPacific -2.66 20.17 19.22 -13.61 9.39 39.13 -40.56 18.87 Manning & Napier -9.26 19.38 19.28 -15.60 9.50 39.55 -41.41 17.87 MSCI ACINI Ex USA GR USD -3.44 15.78 17.39 -13.33 11.60 42.14 -45.24 17.12 , Th WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense rato. THE io. BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 5 ) Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. .' GROUP. i T T r r 1 _ - - - -- - - Risk - Reward Time Period: 1/1/2007 to 12/31/2014 - Calculation Benchmark: MSCI ACWI Ex USA GR USD 20.0 - --- -- - - - I I I 1 ; 10.0 - 1 -. -__- - - - - - - -- ---- ---- -- - - - -- - - - -- -- - --- -- - -- ---- - - - - -- - - - -- I [11 Iy �+ _______ __ 1 ____ __ _________ T [ 1 _ C - 10.0 - -- - - -- ----- - --- -- - _._- _..__...____._. -_- s____._.__ ___ ._- ._______ _____ ____.-___--__.___- E i 1 ix 15.0- - - - - - - J-------------- _- .._.___..___.____ -.1 _.. 10.0 15.0 20.0 25.0 30.0 35.0 • Std Dev Ii O Neuberger Berman International Sel Instl • Transamerica 0 WCM 1 • Virtus T EuroPacific • Manning & Napier I O MSCI ACWI Ex USA GR USD I I Time Period: 1/1/2007 to 12/31/2014 Calculation Benchmark: MSCI ACWI Ex USAGR USD Downside Sharpe Tracking Return Std Dev Deviation Alpha Beta R2 Ratio Error Neuberger Berman International Sel Instl 1.43 19.14 3.58 -0.36 0.92 94.34 0.13 4.86 Transamerica 3.03 19.30 2.69 1.17 0.93 96.21 0.21 4.00 ii WCM 8.09 15.80 4.47 5.98 0.72 86.71 0.52 8.03 , Virtus 2.94 16.85 6.14 1.13 0.77 85.73 0.21 7.91 EuroPacific 3.29 18.74 2.32 1.38 0.91 96.88 0.22 3.80 I I Manning & Napier 1.77 20.62 3.75 0.08 0.98 93.02 0.15 5.47 1 MSCI ACWI Ex USA GR USD 1.84 20.30 0.00 0.00 1.00 100.00 0.15 0.00 THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. n Virtus is used for illustration p urposes due to the longer track record than VTIIX which has an expense ratio of 0.95. 6 GROUP. V 1. 1 Risk- Reward Risk - Reward Time Period: 1/1/2010 to 12/31/2014 Time Period: 1/1/2007 to 12/31/2009 Calculation Benchmark: MSCI ACWI Ex USA GR USD Calculation Benchmark: MSCI ACWI Ex USA GR USD 20.0 -- - - -- - _ _ - - -- 20.0 - - -- - -- - 15.0 - i- - I 15.0 - - -- - - - - • 10.0 ® - _ _.- - -- 10.0 - r ! ! i I 5.0 -- ®- . 5.0 j - - i I� 5.0 1 -5.0 - - - - - - - - V 1; c , E 1 �10.0 I -t- - -; -- - - # L -10.0 - L - - ; - 10.0 15.0 20.0 25.0 30.0 35.0 10.0 15.0 20.0 25.0 30.0 35.0 j Std Dev Std Dev o Neuberger Berman International Sel Instl • Transamerica • WCM 0 Neuberger Berman International Sel Instl • Transamerica • WCM • Virtus Foreign Opportunities I • EuroPacific • Manning & Napier Time Period: 1/1/2010 to 12/31/2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD • Virtus Foreign Opportunities I • EuroPacific • Manning & Napier O MSCI ACWI Ex USA GR USD 0 MSCI ACWI Ex USA GR USD I I - - _ Time Period: 1/1/2007 to 12/31/2009 Calculation Benchmark: MSCI ACWI Ex USA GR USD - Sharpe Return Std Dev Alpha Beta R2 Sharpe Return Std Dev Alpha Beta R2 Ratio Ratio Neuberger Berman International Sel Instl 6.22 15.50 1.68 0.91 92.85 0.46 Neuberger Berman International Sel Instl -6.06 24.14 -3.65 0.92 95.56 -0.22 Transamerica 8.41 15.93 3.55 0.95 96.01 0.58 Transamerica -5.34 24.01 -2.94 0.92 96.72 -0.19 WCM 9.62 14.19 5.31 0.80 85.89 0.71 WCM 5.59 18.38 6.26 0.67 88.70 0.27 Virtus Foreign Opportunities! 8.14 13.64 4.19 0.74 81.02 0.64 Virtus Foreign Opportunities! -5.17 21.20 -3.69 0.78 89.50 -0.24 EuroPacific 5.68 15.93 0.96 0.95 96.91 0.42 EuroPacific -0.57 22.89 1.59 0.88 97.11 0.00 Manning & Napier 3.61 17.97 -1.31 1.06 93.95 0.28 Manning & Napier -1.22 24.67 1.51 0.93 92.97 -0.01 MSCI ACWI Ex USA GR USD 4.89 16.48 0.00 1.00 100.00 0.37 MSCI ACWI Ex USA GR USD -3.04 25.66 0.00 1.00 100.00 -0.07 THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. Th) B OGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 7 Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. Lit --..." G ROUP. 1 __ -‘. TTR7nnei,r T I , - - -- --- - - - - - - - - - J l Batting Average Up Capture Ratio Calculation Benchmark: MSCI ACWI Ex USA GR USD Calculation Benchmark: MSCI ACWI Ex USA GR USD 100.0 -- -- 98 - 100.0 100.0 - - - -- - -- - - - 100.0 - 97.6 -- - I 94.7 90.8 ! 85.6 78.0 75.0 - 75.0 - - -- 57.3 I 50.0 -- 47.9 -- 51.0 51.0 `46:9 49 0 50.0 - -- I - • 25 i I m 25.0 N I E > z rn i I co n m 0.0 d_._ __ . __ e _._- _._ /1/2007 - 12/31/2014 I1/1/2007 - 12/31/2014 r 73 Neuberger Berman International Sel Instl El Transamerica Ea WCM ra Neuberger Berman Intemational Sel Instl =Transamerica (=WCM im Virtus n EuroPacific m Manning & Napier • Virtus EuroPacific IN Manning & Napier •MSCI ACWI Ex USA GR USD •MSCI ACW Ex USA GR USD Max Drawdown Down Capture Ratio Calculation Benchmark: MSCI ACWI Ex USA GR USD Calculation Benchmark: MSCI ACWI Ex USA GR USD . 99.2 100.0 100.0 93.1 92 2.1 -5.0 -I_.- -- 1 1----] __ 89.1 -10.0 - -- - - - � 3 -___73.0-_-_, ` - -15.0 I - 75.0 20.0 .� - - 61.9 ' -25.0 - -___ - -30.0 !__..--- - 50.0 - - --- -35.0 - -- - -� o 40.0 ;- 7 Ce 30 - 45.0 - -41.5 • 25.0 j _ 3 -50.0 ,_. - -- N. - - m 1 - L . _ , -51.2 - -51.3 _ _ -_ _.- -- -52.2- 55 0 -54.6 _ 557 - 55 7 0 I . g `4 -60.0 - I - - - -- - = 57 - - -- o 0.0 ` __-- - -- - - 1 1 /1 /2007 -12/31/2014 11/1/2007 - 12/31/2014 rz Neuberger Berman Intemational Sel Instl ma Transamerica DWCM r3 Neuberger Berman Intemational Sel Insll ®Transamerica 0WCM NVirtus EuroPacific =Manning & Napier mVirtus - EuroPacific im Manning & Napier • MSCI ACWI Ex USA GR USD • MSCI ACWI Ex USA GR USD THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. BoGDAHN ' I 1 REREX is used for illustration purposes due to longer track record than RERGX. 8 Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. GRO V P. alAliP 1 Alpha Excess Return Calculation Benchmark: MSCI ACWI Ex USA GR USD Calculation Benchmark: MSCI ACWI Ex USA GR USD 6 0 6.8 - -- - 6 2 6.0 - -- - 5.5 - --- -- - - -- -- -- -- - -- - - 6.0 L - - > , 5.0 - - - --. I 5.3 4.5 -- - - • 4.0 I ---- - - - - 4.5 - - 3.5 - -- '- - - !b- .- - f ----- 3.0 -- - -- - -- - 1 -4 - -- - 1.4 - 1.5 1 2 1.1 E 1.5 1:2 - 1.1 1 . 0 t 0.8 0 . 1 N 1 0.0 0 - -_ N 0.0 -- _.. ,. 20.0-- L� -0.1 n ..w - w 0.8 - -0.4 -- - - - - - -0.5 0 - - -- _ _ - '1/1/2007 12/31/2014 1/1/2007 - 12/31/2014 En Neuberger Berman International Sel Instl =Transamerica me WCM Fal Neuberger Berman International Sel Instl Transamerica ea WCM =Virtus El EuroPacific =Manning & Napier •Virtus in EuroPacific •Manning & Napier =MSCI ACA/1 Ex USA GR USD MSCI ACWI Ex USA GR USD I Information Ratio Treynor Ratio i Calculation Benchmark: MSCI ACWI Ex USA GR USD Calculation Benchmark: MSCI ACWI Ex USA GR USD 0.8 - 0 8 - -- - -- 11.0 - - - 00 - 1 - - - - - -- 10.0 - - 0.6 I . 8 .0 - - - -- - - - 0.5 - - - - - - 0.4 1- f - - --- - - --- 6.0 - _.. - - - - - 0.3 r '. } .. 1 0.2 - -- 0.1 k I r� 3.0 2,7-- -- ^2.7 1 o � 2.3 I E 0.0 ! -- o 1 i 1.0 1.0 € 0.0 > 1.0 - 0.6- 11/1/2007 - 12/31/2014 1/1/2007 - 12/31/2014 1 r7 Neuberger Berman International Sel Instl =Transamerica reiWCM En Neuberger Berman International Sel Instl =Transamerica WCM Virtus . _EuroPacific =Manning & Napier miVirtus r'EuroPacific =Manning & Napier X MSCI ACWI Ex USA GR USD =MSCI ACWI Ex USA GR USD THE ' WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. r1 BOGDAHN ■ REREX is used for illustration purposes due to longer track record than RERGX. 9 GROUP. m Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. v V 1. I I I TTY Tn n el, T T __I -- -__ {, 1 Rolling Returns _.. - _ _._ -- -_ - - - — Time Period: 1/1/2007 to 12/31/2014 Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD - - r- III I dEF4 d. 1 c 30.0 - 1 1 - { I 1 - . _ -- - I 22.5 { —i' _ { [ \ 15.0 f S 1 I ' ..� v` I • 1 .� .r r rr..._ :•`•p• ...i......+.;;:,..,..",.. ..��'T _T . „.......::::J ''' .::::::::: op _ 1 i f __ _ 41._:_f_ _ , ..y..,::--- - - - 0.0 _4_____ - ' .. ____ -,....z.,, _ _ _ __ 1 I 1 ..: 4* :.; rn . _ ___t_i i ____ __ _ _ _ __J__ 1 -7.5 --11<....o..!...1="-----11 { _ 1 1 __I _\__ - I —I i I 0 5 06 07 OB 09 10 11 12 1 E . 5 06 07 08 9 10 1 02 1 I 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 E -15.0 ---1-----1-7-1-1-1- ' 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 01 02 03 04 05 06 07 08 09 10 11 2013 12014 2012 2011 12010 I -®WCM — Transamerica •••• Manning & Napier I Neuberger Berman International Sel Instl EuroPacific — Virtus •-• MSCI ACWI Ex USA GR USD - Rolling Returns (Descending Rank) _ ___________ ____ - - -- — - -- — _._ Time Period: 1/1/2007 to 12/31/2014 — Peer Group 5ou Peer Open End Window: Funds - U.S. - Foreign Large Blend Rolling ndow: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD — 1st to 25th Percentile r" to Median I� 51st to 75th Percentile 76th to 100th Percent) e II f f , 25.0 1 r .r 4 -- i , --7. -! . . - ,,,r74" - kz• 7 & - •;, , . - ^,.: -4 ; 7 . ,- ., " --, -7. - ; V"' ' 7- •;'--- •:, ' : ' . ••••• .= l ' i ; 1.,;' ... VO . 4 . . . ,w,--- ', , ■■••!! *,,, , , - = t • ....„,„...,..,: ,. 1, C . : A 50.0 t : ' s :. ` ,., � -? , r ; � ,, �t t i # _ F # , 1 : '.s a-. �C r''s •� � - ' + t r 1017 75.0 - - ., � : _ ,u , _<i . _ , 11 11111111111111111111" ; - ... - -- -- 1 r -- - I - 1 T 1 - I I I I I �- T 1 02 1 03 1 04 1 05 06 1 07 I 08 09 10 11 12 100.0 - 1 1 -4I 1 ..L. 1. _ _ - 1 0 2 1 . 1 1 I 1 1 1 r 1 1 1 110111 1 6 07 08 09 10 11 12 01 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 OB 09 10 11 12 201 2 03 05 06 07 08 09 12 20132 03 04 05 0 2014 2011 2010 WCM —Virtus ®Neuberger Berman International Sel Instl —Transamerica EuroPacific ••••Manning & Napier THE •••• MSCI ACWI Ex USA GR USD / % BOGDAHN WCM's performance represents ar purposes blend due of the to mutual longer track fund and record the than separate RERGX. account net of the mutual fund's expense ratio. 10 GROUP. REREX is used for illustration Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. - \_ - -- 1 ' Rolling Excess Returns Time PeriCd: f/1/2007 to 12/31/2014 Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD 12 , 1 I 1 I ' , i 1 1 J.,_ I [ i 1. LL1 L__ [ _ i t_ , i ' . -; 1 -I - - -- i 1 , 1 o.o - - - ; — 1 —,—,____ 1 I F 1 i 1 I I I , i 2 ---,L, ......... 11 . - 1 - - ' . - ;4, i•-• . ... -1-td i I r 1 .. '1 ... 1 *** ' ****** 1 * .- ' -**1 1 *** ■ * .: *** ..',.:t.i,:: • t.‹ - i 1 1 1 , ...„.4_1:„.„...,p:. , •.,.._1.,, , ,A J,..••• r;r" . — — ... -„- 1 1 _.1 .,.., ..„, 0.0 __ Lagfais 1 , , ,, , , , . . .,„.... ,,,.. . * .,,,,,. , , ... Is 1 ...,....4. .. : ... • .... . r ...... r ._ 1 I 1 * *J. '1.:sk7 Jell ____ .. - ' .... *** _ j____ 1 t_ __ I __I _i_ 1. I 1 4 _ii J 1 I I d - 1 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 1__ [ _. 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 2010 2011 12012 2013 2014 — Neuberger Berman International Sel Instl —Transamerica —WCM —Virtus -• • EuroPacific -- Manning & Napier •••• MSCI ACWI Ex USA GR USD I I Rolling Excess Returns (Descending Rank) I Time Period: 1/1/2007 to 12/31/2014 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Blend Rolling VVindow: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD I - - 1st to 25th Percentile ---", 26th to Median E...---151st to 75th Percentile ME 76th to 100th Percentile 1 0.0 ....... .. , . ••• ................... „ ... 0 . ........ ..... • ....... , ---.` . ; i r .... ••.. ....... ; ....... ::: . ,:..._ ,,,-'' ' ---_.,. ...- .__N-7...., ,,, -.. , , ',,,,,,, - ; ---,,,, ir 25.0 1 ' ; ..... ,,„„.•• . •,.."•.• ....=:-. ..... • ---......, .......... ..;;,.. ..,-,:.............--.1‹.....0„,, . ..= - ' ' ' N:' " 1 , ' •. 1 1 , • , , .,„ i . .,, ......... ._ •....• ............ ••„.•• ••. .......... „ I i 'l , ., ; t = .1 , *„ •.• ,= - , r ", ' ; ,,•. , .. ,,,,,•.. ',.- ''',. , :: ".. , ' - ••'. --,,,: j. - 77'•••., , i=", ,,C1"-e.4::: .%''' ' 1 ' : , . , :' : .: : : ,.: ' .„' r , r , 1 :.: :-•"-,•'.,_,: .,„ , : . 1 : ;=:•.;..° ......... 7.. - ,,, ,, v ..1 , - . .,.. ,. ..... 7. ............ ,t7 . ,,. .... ,; ,..7 i: . , 0 ,. . :4 "1„ ,::4.,.r ,... irz ; f: 1 1., ...- . . . . • • !I 1 1 lt.• .. ,. .111.o.'!",` - • .... WO 11 r.• 1 11. f 75.° 1 111111111111111111111111' 1 ' 1 111111911 III 1111111111111 1111 .. . 7 ** , , § 100.0- 1 111 T 1 1 1 1 1 1 I 1 i 1 1 1 1 1 1 ! 1 1 1 i 1 1 1 r i 1 1 1 r - 1 1 i 1 1 1 { 1 m 1 1 1 1 i 1 1 t 1 1 i 'll 11 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 II 1 1 12010 2011 2012 2013 2014 I I — Neuberger Berman International Sel Instl —Transamerica —WCM i —Virtus --- EuroPacific •••• Manning & Napier I •••• MSCI ACWI Ex USA GR USD 1 E WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. PC). BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 11 - or Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. GROUP. 1[ • J - - -7 - ' - --- ------_, — - __ 7____ _ _ 7 _ _-- -- - - -- -- -,- Rolling Sharpe Ratio Time Period: 1/1/2007 to 12/31/2014 - - — — - ---- - — -- -- --- ------- ---- Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD 1.5- F -1-- 1" -- r - i ----- 1 ' i 1- T — T 1 I 7 i _, 7 ITT r _ r _ _ __. i 1 i , i nil 1 Iiii 1 i ii , Hi 11 , i , 1 ilipl 1 l' , il,1 1 I II ____ j . i , , 1 ___[_ i 1 ;I -1 \,- 1 A■I 1 ....:.:::. I , ' , ,1.. .*::\I I I ;. ,..II ' ' ' ' --- i 1 ..... ........ ...,.. ... .' - .:.- 4 „„, .. .. i ... ..,::: -. t 1, 4 _.. ; . : . ........... 1,.1.-** r • 4......:...... :1 .1.,..-...: , ::.--- , 1 1 . 1::: ' .... II . • I .-•..'"--;" --- -i _ II-'2'11.4:II . :;-. ** . ''..... :__ I - --,---- --1 - --- ---- I I i I 1 I _ 1-1------f- ---Lr - 1- i L t I 1 t , 0.0 .....1....I.,!7'' I ' 1 I I ' I ..j. I r t I I I I i -- 1 1 I - i 1 - ■ - 1 -- ---1-- 1 1 - - co -c 1 01 02 03 04 05 06 07 08 09 10 11 1 12 01 02 03 04 05 06 07 08 09 ' 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 CO 1 12010 12011 2012 2013 2014 1 — Neuberger Berman International Sel Instl —Transamerica — WCM ' Virtus --- EuroPacific •••• Manning & Napier •••• MSCI ACWI Ex USA GR USD . 11' Rolling Sharpe Ratio Time Period: 1/1/2007 to 12/31/2014 1 ------ - -- , Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Blend Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD I ---- - — — 1 7 1st to 25th Percentile FT. to Median =151st to 75th Percentile NE1 76th to 100th Percentile 0.0 - _ , ,..... ___.__ „.... -.- . , . .., ;___ r _i _ I. - __ ,_._,__- , -i--- -; -- -!- ■ -- 1- --,--- - 1 - 7,1— ' 1 —' - -- -- 1 --- 1 , -- 1- - - ' -- - ', - - - - - --- -- - - - -=- 1 -- -111 ---'- - 1 — ; 1 ; I ... .. ,••• : ... k . s■•• ' 25.0 -- I s - -! - - ' ' - - ' - - ' ' - -, - '- ' i''. ' - e -* ... • .. ***.• - .: ........ .. t o.* ... • ..... • .. :... =-- --; , • • 1 ,....• % i . •soo .-.''''''.• - • • • . '''. - i ,. \ ...' . ..... . . . . • , 0 • ,,,,/ ... ..• ,,,,_. I . -i----r" .... i----'--- .. ....... ....... / ....., . 50.0 --; -- - - .• - -' , , - --, , - - ., ,:. -*••.••• • . .; ., - '--- ----.: ---%•,-;•••,*• . •.;,..: I - , . , , ' 1 y.-i. . -,,....,,,..._'! :,, ....;4 ,, ' ,, °I ' .. . , ,,;. ..;,-,■., i ,, , ., ,. , : . ,,, , ,...:.....7.... ,. . , ,. ;,, .. • ''., . . ' q _ , 2,: t ,, ' ' i° ,_ I . ; .' ', ",.. 4. •,......... ,„.•,•,„..,_:' ,: _ : ,-...:, :' ' ! , -, ., e. ,,. - , , .4.; ,=. : =-L ',- ' '' '-', -• •," •• ' • . „, „..,„ . .. . 75.0 __......,,...„„,,,„,,,,„,..iwz,vipx ..1101,141.;.7.1.4.101,:„..: .. ,.. 4 0 ... Nolintritwrrn177.44dpg ;al . . iistU tv • - -.14 4 . 1 ,opuprjoibit.4u . as !M .,., ••• - •••• . .. . : •-•••• .1nOliftft mil . . -.1 .....mmal ".. . • ....•-• , : . .,..1 - , . :., : ': ...- , , , --, . . ' .,W ' .° ' _._ger----onstanowetwassewlemalboutiNNMannenreemilmr ItW-r—int-wasOlet EL100.0 iiii-C11-C-Iii III11111111 1111iIiiiii IIIi frill(' 'Mit 11111 cv .c 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 CO 2010 2011 2012 2013 2014 — Neuberger Berman International Sel Instl —Transamerica —WCM —Virtus ---- EuroPacific •••• Manning & Napier •••• MSCI ACWI Ex USA GR USD Th) THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. , BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 12 Virtus is used for illustration pu GROUP rposes due to the longer track record than VTIIX which has an expense ratio of 0.95. L,' . . , .. ... - --, Rolling Std Dev ri Time Period: 1/1/2007 to 12/31/2014 — -- - Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD - — ,,,... .._, _ T r , -- r 1 1 1 300 ----- i --- T - ii 1 11 r i:I I i 1 1 I 1-1 1 i 1 - T - T 1 i i ili IIIIIIIIIIIII ....... 1 11 i 1 I 1 1 I 1 1 11J...... .......................................................... ", ... :% 'IL 11 1 , I 25.0 I ' ... r ................. . -- ***1- i I 1 ,...,... ,......-1 1 ,,,...,.• •1 ... 4 ... 1°. -- r ' ! r 1 , , 1 *4 ......... 1 ...... .. ...... , , ... • ...... i 11 1 1 ,------4-4.4.• 1 1 1 1 r I 1 1 iikk i**41...I. .... ............... i ... 1 . ....... 1 _1 1 _ ..........:.__, 4_41 1 ...1. _ _ a _______ ___ 20.0 -- 1 I ---i•--l-a,„,----...-...1-- I 1 I 71---- * **1--------1--r- ... I ........ i? ... iL*•.1....1 .... ... 1 ............... ... 1 ...7 .. 1 ... r ...... .,....,. ................ - .1:± ...... ... , , , , i 1 1 I 1 1 1 , ; I i 1 . i , , 1 I i I 11 — 1 15 .0 1 i 1 , - - , 1 - ..- ... .. . J ..J.:... •... 1 > --1------ 1 - -- -- 1 1 1 ---- I ---/ I iii .1_ _____ 11____ _ _ _ '` , .. ,,,,,,,,, :•; :: t 1 8 10.0 ----r-i- 1 ----- -- - - - -- - -,-- '1-.-i i ill i , i 1 + 1 i 1 i t -. 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 I 65 I 2010 2011 2012 2013 2014 — Neuberger Berman International Sel Instl — Transamerica —WCM —Virtus •-• EuroPacific •••• Manning & Napier •••• MSCI ACVVI Ex USA GR USD I Rolling Std Dev Time Period: 1/1/2007 to 12/31/2014 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Blend Rolling Window: 3 Years 1 Month shift Calculation Benchmark: MSCI ACWI Ex USA GR USD 1 - 1st to 25th Percentile r 26th to Median = 51st to 75th Percentile Em 76th to 100th Percentile - -7 , --- , ---I- - f -- , -- a- --, - I- --."-' -- - 0 - 0- - ' ' ' I ----.- ' '-- ' ' I --' --- 3- -- ' ' ` - '-' - :- - I '-'--. '--- . . , 1 , 25 .0 - ........... .... . . . .. ... . ........ . . - ... .' . . . . .,. .,. i ... . ....... ... , , ..• .... .• . , , . , , ,, .„ .... . ........... ... . II ...... t: .. ' . ........ *** ............... • ... ** ' I 'I :• .... _ !.... ... . .. _:.." , . • . • ....._ ,,, ..,, ,,,, , , „,-.,-,,., -, _ , ., , , 7 , , ..•.: , .' ' i ,, - :1 ' t .,,,,.'. 50 :- - - - - `- - ' I: , •. ` "e . 1 1 ''''''' 7"', ; i' i ...1••!..•••••, ' ...' ' ,' ., ' , , ' ,..• .: l'',, ... , ' •--; „fl 44 i .1:-.... - '''. 4"-", 1 1 1 .. '„ • ., '' .""" . '. 1 1 '' 0 '.% ....'" ' -..•..,......'••••:., ---,...:.--:'•••••-• . .C•••! ' I -....,-' !, ' '''',1 't,'AI;r1;.:I4 fl 72% ` • ''' ?••• ''':. ' . •, '' '' ' 1 ,' I Ii • ,..!!...''', I ‘' : --.*- , , ',. .. - ...-z .,' . • ,. ,,,,. ... ', , •; ''. ,---,) .1 , .., ,, ,,,,r4..,k-,,,,,,,,,,;,,,..' ,,-„,„,,,,„4 0 „4.„ ,,., t i,";- i I I 1 .„....■ 1 ...7 I • ' ' ' , , , ■ I I - ,' ,,,, , „... °7 - .... .;:. ; '',- 1 ', ., ,-„,.! I ' • • -- ,,. , ■ - • ,. -A 4 1 • '.., ,: t. . '1 ' ' '' ' ' ;' ..""--"••••■ wow on im&C EINEM —111•110'57:atialMedlle".-- =:::--;"--- ---.'''wj'''' - w --- 111.17 .... ' ,.. c'. n 75.0 ---.:.-........;___'-_,I,.... -_"iiiiinimiWNOXIMPINIKIIP.RNVIIIIIN elow-=.••■ i - iii ....-• 01 . 422 .-- 12 - - I I co illijal . , ' „ q - ' ,, - " 00014, 1 ' ....". Pr" , fumg I .4 zolson' , Aim , . :., .... n .P*P sw ilia•m aim inu ism ., am ,,,, It.A.4443.4,,,,,o, . - . — 1, f..0011segastmesweiNIENIOWOMERMIN INERMIN omemem _ _ - in - i I 111(11111 (111 li 11 - a 01 02 03 1 04 05 1 06 1 07 1 08 1 09 1 10 1 11 1 12 01 . 172'[03 04 05 06 l' 07 1 08 09 [ 1(311 1 12 01 1 02 1 03 04 05 06 1 07 1 08 1 09 1 10 1 11 T 12 01 1 02 [ 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 1 CD 2010 — Neuberger Berman International Sel Instl —Transamerica WCM —Virtus EuroPacific Manning & Napier •••• MSCI ACWI Ex USA GR USD 2011 2012 2013 2014 •••• — •••• 'II.N% THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. REREX is used for illustration purposes due to longer track record than RERGX. 13 cc 1 )„,,BOGDAHN ----or GO Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. RUP. --I --11 TT -T n- n 0_1_1 r - — — -- Neuberger Berman International Sel Instl NILIX it Firm Description Manager Biography In 1939, renowned investor Roy Neuberger founded the firm to manage money for individuals and families. Benjamin E. Segal In 1971, NB launched a portfolio for the institutional investment business. Today, NB delivers comprehensive investment management products and services to a broad base of clients, from individuals Benjamin Segal, CFA, Managing Director, joined the firm in 1998. Benjamin is a Portfolio Manager for the to mid -sized businesses to the largest institutional investors. The 100% employee -owned firm oversees firm's Institutional and Mutual Fund Global Equity team. Benjamin joined the firm from Invesco GT Global over $250 billion in traditional and alternative equity and fixed income strategies, private equity and where he was an assistant portfolio manager in global equities. Prior to that, he was a management commodities. consultant with Bain & Company. He also served as an investment analyst for both Lehman Brothers Asia and Wardley James Cape!. Benjamin earned a BA from Jesus College, Cambridge University, an MA from the University of Pennsylvania and an MBA from the Wharton School of Business. • Strategy Description The strategy is an actively managed, large capitalization strategy that seeks to outperform relevant • intemational equity benchmarks through superior security selection. Moreover, it is a portfolio that uses a bottom -up investment philosophy whose main tenet is finding Quality at a Reasonable Price (QuaRP). Portfolio construction is a disciplined procedure that employs a risk management process focused on generating favorable trade -off between risk and reward. The team looks for companies across the market capitalization spectrum within the developed markets and will invest selectively in emerging market stocks when risk/reward fundamentals are favorable. THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. 4BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. 14 • GROUP. 1 - .S F _ - - _ _ - ` -_� -- Portfolio Statistics Neuberger Berman International Sel Instl - Top Holdings As of Date: 12/31 /2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Date: 11/30/2014 - -- Portfolio: Neuberger Berman International Sel Instl Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Benchmark Portfolio Benchmark Weighting % Weighting % # of Holdings(Average) 75.00 1,839.00 State Str Instl Invt Tr Treas Mmkt Fd Inst 3.43 Market Cap (in Mil) - Monthly(Average) 38,307.53 15,116.13 Roche Holding AG Dividend Right Cert. 2.68 1.16 P/B - Daily(Average) 3.41 2.62 Check Point Software Technologies Ltd 2.53 P/E - Daily(Average) 22.12 19.76 SMC Corp 2.25 0.08 Dividend Yield % TTM - Monthly(Average) 2.07 2.38 Givaudan SA 2.19 0.09 Reed Elsevier PLC 2.09 0.11 Novartis AG 2.09 1.22 Kansai Paint Co., Ltd. 2.07 0.02 Toyota Motor Corp 2.01 0.92 Bunzl PLC 2.00 0.05 Morningstar Style Box - Neuberger Berman International Sel Instl Neuberger Berman International Sel Instl - GICS Sectors Portfolio Date: 11/30/2014 Portfolio Date: 11/30/2014 Mar Cap % Benchmark a Portfolio a - . t° Market Cap Giant 37.6 Weighting % Weighting % 12 6 , 1 - . Market C ap L arge 35 Energy % 2.68 7.67 '= Market Cap Mid 27.1 Materials % 10.55 7.70 1 a Market Cap Small 0.0 Industrials % 17.87 11.00 8.7 9.1 9.4 Market Cap Micro 0.0 Consumer Discretionary % 10.94 10.89 Consumer Staples % 8.20 9.77 Healthcare % 12.44 8.83 11 3 Financials % 20.18 27.71 y 0.0 0.0 0.0 - Information Technology % 12.13 7.32 Telecom Services % 5.02 5.51 - -- I - - - -- - - -- -- Utilities % 0.00 3.61 Value Blend Growth :I .l THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. � BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 15 Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95 GROUP _ a - � r T — - - -- - - - - - -- Transamerica I TSWIX i Firm Description Manager Biography For more than 25 years, TAM has provided investment solutions, asset management, fund administration Brandon H. Harrell and shareholder services for institutional and retail clients. In addition to investment management, TAM provides product development, legal, compliance, transfer agent operations and fund accounting and Brandon Harrell is the Portfolio Manager for the TS &W International and International Small Cap strategies. administration. TAM is committed to increasing client wealth by leveraging strategic market relationships Brandon began his career in the investment industry in 1987. Prior to joining TS &W in 1996, he worked as and developing flexible solutions that drive financial performance in all market conditions. an Intelligence Officer at the Central Intelligence Agency. Previously he was a Securities Analyst at Growth Stock Outlook, Inc. and a High Net Worth and Mutual Fund Portfolio Manager for Capitoline Investment I Transamerica Asset Management (TAM), is the asset management business unit of Transamerica. TAM Service. Brandon graduated from Wake Forest University and received his MBA from George Mason consists of Transamerica Funds, Transamerica Partners Funds, Transamerica Series Trust, Transamerica University. He holds the Chartered Financial Analyst designation and is currently registered with FINRA and Income Shares, Inc., and Transamerica Asset Management, Inc., a registered investment advisor. holds a Series 7. Transamerica and its affiliate companies are wholly owned by AEGON N.V., an international life insurance, pension and asset management company. designation. S I Transamerica Asset Management, Inc. ('TAM "), the Funds' investment adviser, is directly owned by Westem Reserve Life Assurance Co. of Ohio and AUSA Holding Company ( "AUSA "), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC ( "AEGON USA"). AEGON USA is owned by AEGON US Holding Corporation, Y which is owned b T 9 by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by , AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group. Transamerica Fund Services, Inc. ('TFS ") is the Funds' administrator and transfer agent. Transamerica Capital, Inc. ('TCI ") is the Funds' distributor/principal underwriter. TAM, TFS, and TCI are affiliates of AEGON NV. Strategy Description 1 TS &W employs a core investment style influenced by a value philosophy. The process is designed to identify inexpensive stocks that are exhibiting evidence of positive development in business fundamentals and starts with a proprietary Four - Factor screen. TS &W defines value using cash flows. Cash flows are a more robust measure of business value than earnings and are more readily comparable across geographies. The process seeks to avoid value traps by investing in companies that are exhibiting positive change. As part of the initial screen, TS &W evaluates eamings potential (defined as earnings estimate revisions and earnings surprises) and relative price strength, which are regarded as evidence of change that can be uncovered through fundamental analysis. The process employs rigorous risk controls and a sell discipline. A proprietary Four - Factor screen is used to narrow the large universe of international stocks with market capitalizations above $1 billion to approximately 600 companies that are inexpensive on a cash flow basis and showing evidence of positive change. Fundamental analysis is then used to build a diversified portfolio of 80 — 100 stocks from across the 10 economic sectors of the MSCI EAFE Index. The process also employs rigorous risk controls and a sell discipline. TS&Ws style can best be described as value with a catalyst. The investment process is designed to identify inexpensive stocks that are exhibiting evidence of positive developments in business fundamentals such as growth of cash earnings or improved profitability. TS &W defines value using cash flows because cash flows are more difficult to manipulate than eamings and are a better estimate of future potential than book value. The TS &W process also seeks to avoid value traps by investing in companies that are exhibiting positive change. As part of our initial screen, TS &W evaluates earnings potential (defined as EPS revisions and earnings surprises) and relative price strength, which is regarded as evidence of change that can be uncovered through fundamental analysis. WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. THE REREX is used for illustration purposes due to longer track record than RERGX. 16 11 �� BOGDAHN Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. ` GROUP. Portfolio Statistics Transamerica - Top Holdings As of Date: 12/31/2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Date: 9/30/2014 Portfolio: Transamerica Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Benchmark Ii Portfolio Benchmark Weighting % Weighting % # of Holdings(Average) 101.00 1,839.00 Hitachi Ltd 2.09 0.20 Market Cap (in Mil) - Monthly(Average) 33,817.91 15,123.26 Sanofi 1.81 0.74 P/B - Daily(Average) 2.01 2.63 Nippon Telegraph & Telephone Corp 1.64 0.13 P/E - Daily(Average) 17.02 19.81 Unilever PLC 1.59 0.30 ° Dividend Yield % TTM - Monthly(Average) 2.66 2.36 Mallinckrodt PLC 1.56 Eni SpA 1.55 0.33 Sumitomo Mitsui Financial Group Inc 1.51 0.28 Novartis AG 1.45 1.19 Svenska Cellulose AB Class B 1.45 0.08 FUJIFILM Holdings Corp 1.44 0.08 I �I I Morningstar Style Box - Transamerica Transamerica - GICS Sectors Portfolio Date: 9/30/2014 Portfolio Date: 9/30/2014 4 r Market Cap % Portfolio Benchmark i e Weighting % Weighting pii Market Cap Giant 38 1 3 11 12 3 i co _ - -__._ - -- ___ - Energy - - - _- -. .. . �v Market Cap Large 38.4 Ener % 4.89 8.99 '• : ` Market Cap Mid 22.7 Materials % 8.41 7.98 o: Market Cap Small 0.0 Industrials % 13.96 11.02 8.4 ; 1.5 Market Cap Micro 0.1 Consumer Discretionary % 11.67 10.43 Consumer Staples % 9.73 9.76 1' ' ' . Healthcare % 8.55 8.79 cn 3 Financials % 24.01 27.06 0.0 1 0.0 I 0.0 Information Technology % 8.82 7.01 Telecom Services % 4.60 5.36 -___ -_ Utilities % 5.38 3.60 Value Blend Growth 1 I THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. � � BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 17 `2A GROUP 1 Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. I __ - -__ _ __LL_9_T n_cl_7 -.s r r I _ -- _ —' -- _ _____ _ _ -- _ _ _ I` 1 WCM WCMIX Firm Description Manager Biography WCM Investment Management, which employs 28 people, provides innovative, equity investment advisory Paul Russell Black services. We focus on fundamental, original equity research as the foundation for superior portfolio returns. WCM is a responsive company that provides tailored, client - specific services to a variety of clients including Paul's primary responsibilities are portfolio management and equity research. Prior to joining WCM in 1989, corporations, private individuals, public funds, Taft - Hartley plans, endowments and foundations. his career in the investment industry includes positions as Portfolio Manager with Wells Fargo Private Banking Group and Bank of America. At WCM, Paul has helped define the firm's investment strategy and The current management team joined the organization in the mid -to -late 1980s and acquired 100% pilot the firm's direction. In addition to his active role in portfolio management and security selection, he has ownership of the organization in 1998. The principal owners of the firm are Kurt Winrich, Paul Black, James also served as a client liaison for the communication of investment decisions and strategy. Paul earned his Owens, Sloane Payne and David Brewer. These individuals are all employees. The remainder of the firm B.S. in Finance from California State University, San Diego. ownership is spread among other employees. This provides employees with a stake in the firm's success. Kurt R. Winrich Kurt's primary responsibilities are portfolio management and equity research. He has over thirty years of experience in the investment industry and joined WCM in 1984. Kurt's analytical background includes a position as the head of computer -aided design and analysis with Hughes Electronics Santa Barbara Research Center. He earned his B.A. in Physical Science from Westmont College, his B.S. and M.S. in Electrical Engineering from Stanford University, and is also a CFA charterholder. Peter J. Hunkel Pete's primary responsibilities are portfolio management and equity research. His career in the investment industry includes a position as Portfolio Analyst for the Templeton Private Client Group. Pete has been working with WCM since 2001, initially as Managing Director at a formerly affiliated firm, Centurion Alliance. He eamed his B.A. in Communications from San Jose State University, where he graduated with honors, and his J.D. at the Monterey College of Law. Michael B. Trigg Strategy Description Mike's primary responsibilities are portfolio management and equity research. Prior to joining WCM in 2006, Mike served as Equity Analyst at Momingstar, Inc. in Chicago where, in addition to general equity analysis, WCM believes that attractive returns can only be achieved by structuring portfolios distinct from the market he managed their Model Growth Portfolio. Mike also held a position as Analyst at the Motley Fool, an online indices. As a result, their portfolio owns around 30 companies, concentrating on their best ideas. Their focus investment service. He earned his B.S. in Finance from Saint Louis University, where he graduated with is on industry- leading international organizations, led by visionary management teams with sound business honors. strategies. These companies often dominate their industry and are likely to continue that domination well into the future. Thus, when selecting equity investments, their minimum time horizon is 3-5 years. I THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual funds expense ratio. 18 • � 13 O GDAHN REREX is used for illustration purposes due to longer track record than RERGX. (\ Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. ® G ROUP. I- -- - - - -- - - -- - - -- -- � Portfolio Statistics WCM - Top Holdings As Date: 12/31/2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Date: 10/31/2014 - Portfolio: WCM Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Benchmark Portfolio Benchmark % Weighting % Weighting # of Holdings(Average) 30.00 1,839.00 Canadian Pacific Railway Ltd 5.76 0.20 Market Cap (in Mil) - Monthly(Average) 44,896.77 15,123.26 Taiwan Semiconductor Manufacturing Co Ltd ADR 5.54 P/B - Daily(Average) 6.00 2.63 Canadian National Railway Co 4.90 0.32 P/E - Daily(Average) 25.13 19.81 ACE Ltd 4.35 Dividend Yield % TTM - Monthly(Average) 1.49 2.36 Fidelity Instl Cash Money Mkt CI I 4.24 ASML Holding NV ADR 4.16 Lazard Ltd 4.06 Sysmex Corporation 4.02 0.03 Chr Hansen Holding AS 4.02 Reckitt Benckiser Group PLC 3.96 0.30 1 Morningstar Style Box - WCM WCM - GICS Sectors Portfolio Date: 9/30/2014 Portfolio Date_ 9/30/2014 - r Market Cap % Portfolio Benchmark .,a .4' c° Market Cap Giant 48.5 Weighting % Weighting % ED 4.5 "} r 62.3 Market Cap Large 29.2 Energy % 2.58 8.99 3 Market Cap Mid 22.3 Materials % 6.90 7.98 Market Cap Small 0.0 Industrials % 21.89 11.02 4.1 9.6 8,6 1 Market Cap Micro 0.0 Consumer Discretionary % 7.36 10.43 Consumer Staples % 21.47 9.76 11 I I Healthcare 0 12.26 8.79 /° I 3 Financials % 9.05 27.06 !I. I % 18.50 7.01 0.0 0.0 0.0 Information Technology /o I I Telecom Services % 0.00 5.36 - - __.___ - - -_ Utilities % 0.00 3.60 Value Blend Growth 1 I THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. � BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 1 ` GROUP. Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. - - - - - - — — Virtus JVXIX I I Firm Description Manager Biography Virtus Investment Partners, Inc., parent company of Virtus Investment Advisers Inc., became an Rajiv Jain independent, publicly traded company listed on the NASDAQ Global Market under the symbol "VRTS" upon completion of its spin -off from The Phoenix Companies, Inc. on December 31, 2008. Mr. Jain joined Vontobel Asset Management, Inc. in November 1994. While maintaining his responsibilities as chief investment officer, Mr. Jain became co -chief executive officer in July 2014. Currently he is sole Virtus Investment Partners is a distinctive partnership of boutique investment managers singularly portfolio manager of the Emerging Markets and International Equity Strategies and lead portfolio manager committed to the long -term success of individual and institutional investors. of the Global, European, and Far East Equity Strategies. Virtus products are highly diversified by manager, style and discipline. We have multiple offerings by asset class (equity, fixed income, money market and alternative), in all market -caps (large, mid and small), in different styles (growth, blend and value) and with various investment approaches (fundamental, quantitative, thematic). We partner with managers whose strategies are not typically available to retail mutual fund customers. By offering a broad array of products, we believe we can appeal to a greater number of investors and be less exposed to changes in market cycles and investor preferences. Strategy Description Vontobel, the fund's sub - advisor, practices a fundamental bottom -up approach integrating growth investing (growth & stability of eamings) with a strict valuation discipline in a longer term context. They first create an initial investment universe. The second step reduces this universe to a sub -set of companies that exhibit profitability and reasonable earnings predictability. The third step reduces the list further to companies whose eamings evidence sustainability. To be admitted to the portfolio, a company must pass the fourth step of the process in which its market price should trade at a discount relative to its fundamental business value. Portfolio Construction their final step is designed to mitigate risk. Vontobel believes that the investment risk is in the business itself rather than in the portfolio and, therefore, limits portfolios to a concentrated list of companies that they know very well. THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. % BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 20 Vi \ ` rtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. GROUP t 1 Portfolio Statistics Virtus - Top Holdings As of Date: 12/31 /2014 Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Date: 12/31/2014 Portfolio: Virtus Calculation Benchmark: MSCI ACWI Ex USA GR USD Portfolio Benchmark Portfolio Benchmark Weighting % Weighting % # of Holdings(Average) 50.00 1,839.00 British American Tobacco PLC 6.12 0.58 Market Cap (in Mil) - Monthly(Average) 56,036.96 15,123.26 Housing Development Finance Corp Ltd 4.91 0.15 P/B - Daily(Average) 6.88 2.63 Philip Morris International Inc 4.78 P/E - Daily(Average) 25.29 19.81 Roche Holding AG Dividend Right Cert. 4.50 1.09 Dividend Yield % TTM - Monthly(Average) 1.81 2.36 Nestle SA 4.31 1.35 Unilever NV DR 4.24 0.37 HDFC Bank Ltd 3. Reckitt Benckiser Group PLC 3.81 0.30 SABMiller PLC 3.01 0.29 I Novo Nordisk A/S Class B 2.85 0.48 1 Morningstar Style Box - Virtus Virtus - GICS Sectors Portfolio Date: 12/31/2014 Portfolio Date: 12/31/2014 - - r M ar k et Cap 1 Portfolio Benchmark co Market Cap Giant 71.9 Weighting % Weighting % 8.2 60 67.8 m - -- - - - -- - - Market Cap Large 19.0 Energy % 3.54 7.50 Market Cap Mid 8.1 Materials % 1.85 7.65 g Market Cap Small 1.1 Industrials % 4.97 11.10 0.0 1 1.8 4.9 Market Cap Micro 0.0 Consumer Discretionary % 13.55 11.02 Consumer Staples % 38.09 9.91 - - _ - - Healthcare % 16.46 8.71 - Financials % 15.40 27.68 0.0 0.0 1.1 1 - Information Technology % 5.57 7.44 Telecom Services % 0.00 5.40 I Utilities % 0.56 3.61 Value Blend Growth THE WCM's performance represents a blend of the mutual fund and the separate account net of the mutual fund's expense ratio. BOGDAHN REREX is used for illustration purposes due to longer track record than RERGX. 21 Virtus is used for illustration purposes due to the longer track record than VTIIX which has an expense ratio of 0.95. GROUP 1 i „ THE 1111 r \ BOGDAHN Y GROUP simplifring our investment and fiduciary decisions Orlando I 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 i' Chicago 1 Cleveland Milwaukee 1 Pittsburgh ■ ■ ■ GRS Gabriel Roeder Smith & Company Consultants & Actuaries ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2014 ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016 1 ■ ■ ■ GRS • • • • ■ • • • • • • • • • ■ • • • • • • • • • • • • • GRS ■ ■ ■ Gabriel Roeder Smith 8c Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax ■ Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com ■ February 20, 2015 ■ Board of Trustees ■ City of Boynton Beach Municipal Firefighters Pension Fund ■ Boynton Beach, Florida ■ Dear Board Members: ■ The results of the October 1, 2014 Annual Actuarial Valuation of the City of Boynton Beach Municipal Firefighters Pension Fund are presented in this report. ■ This report was prepared at the request of the Board and is intended for use by the Retirement System and ■ those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. ■ The purpose of the valuation is to measure the System's funding progress, to determine the employer ■ contribution rate for the fiscal year ending September 30, 2016, and to determine the actuarial information for Governmental Accounting Standards Board (GASB) Statement No. 27 and No. 67. This report also includes estimated GASB Statement No. 67 information for the fiscal year ending September 30, 2015. This report should not be relied on for any purpose other than the purpose described above. ■ The findings included in this report are based on data or other information through September 30, 2014. Future actuarial measurements may differ significantly from the current measurements presented in this ■ report due to such factors as the following: plan 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 or additional cost or contribution requirements based on the plan's funded status); ■ and changes in plan provisions or applicable law. ■ The valuation was based upon information furnished by the Plan Administrator concerning Retirement System benefits, financial transactions, plan provisions and active members, terminated members, retirees ■ and beneficiaries. We checked for internal and year -to -year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan ■ Administrator. This report was prepared using certain assumptions prescribed by the Board as described in Section B. The undersigned actuaries 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 herein. The signing actuaries are independent of the plan sponsor. ■ This report 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 Retirement System as of the valuation date. 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. ■ ■ ■ ■ I r ■ This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are • complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted ■ actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or otherwise taken into ■ account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Respectfully submitted, GABRIEL, ROEDER, SMITH AND COMPANY • u / .I LabiA 1 l_th5 kskc Peter N. Strong, FSA, MAAA, 1 A Melissa R. Algayer, MAAA, FCAO Enrolled Actuary No. 14 -069 Enrolled Actuary No. 14 -06467 u ■ Gabriel Roeder Smith & Company II ig II ■ TABLE OF CONTENTS a Section Title Page in A Discussion of Valuation Results NM 1. Comparison of Required Employer Contributions 1 ■ 2. Chapter Revenue 5 . B Valuation Results • 1. Participant Data 6 2. Annual Required Contribution (ARC) 7 3. Actuarial Value of Benefits and Assets 8 4. Calculation of Employer Normal Cost 9 M 5. Liquidation of the Unfunded Actuarial Accrued Liability 10 • 6. Actuarial Gains and Losses 11 7. Actual Compared to Expected Decrements 16 8. Cumulative Actuarial Gains (Losses) 17 9. Recent History of Valuation Results 18 10. Recent History of Required and III Actual Contributions 19 11. Actuarial Assumptions and Cost Method 20 11 12. Glossary of Terms 24 1111 C Pension Fund Information 1111 1. Summary of Assets 27 2. Pension Fund Income and Disbursements 28 3. Actuarial Value of Assets 29 11 4. Reconciliation of DROP Accounts 30 II 5. Investment Rate of Return 31 D Financial Accounting Information III 1. FASB No. 35 32 1111 2. GASB No. 27 33 3. GASB No. 67 36 III E Miscellaneous Information 1. Reconciliation of Membership Data 41 2. Age /Service /Salary Distributions 42 II F Summary of Plan Provisions 44 III III II GRS 1 1 ■ ■ ■ ■ ■ ■ ■ ■ SECTION A ■ DISCUSSION OF VALUATION RESULTS • ■ ■ ■ • ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ EG • • 1 • • DISCUSSION OF VALUATION RESULTS • Comparison of Required Employer Contributions 1 iii comparison of the required employer contribution developed in this and the last actuarial valuation is III shown below. The required contribution dollar amounts shown below are estimates only. The contribution In policy of the City is to contribute the dollar amount determined by multiplying the required percentage of • payroll determined as of the valuation date by the projected pensionable payroll for the year. For FYE 9/30/16 For FYE 9/30/15 • Based n o Based on • 10/1/2014 10/1/2013 Increase Valuation Valuation (Decrease) . if contributed on if contributed on 10/1/2015 10/1/2014 • Required Employer /State • Contribution $ 4,856,683 $ 4,635,318 $ 221,365 As % of Covered Payroll 49.44 % 48.78 % 0.66 % ■ Estimated State ■ Contribution $ 704,322 $ 704,322 $ 0 As % of Covered Payroll 7.17 % 7.41 % (0.24) % • Required Employer 1 ■ Contribution $ 4,152,361 $ 3,930,996 $ 221,365 As % of Covered Payroll 42.27 % 41.37 % 0.90 % II ■ The required employer contribution has been computed under the assumption that the amount to be ■ received from the State this year will be at least $704,322. If the State revenue is less than this amount, the City ■ will have to make up the difference. ■ The employer contribution listed above is for the City's fiscal year ending September 30, 2016 and has ■ been calculated as though payment is made in a single lump sum on October 1, 2015. The actual employer ■ contribution for the fiscal year ending September 30, 2014 was $3,522,147. The minimum required employer ■ contribution was $3,522,147. . Revisions in Benefits ■ There have been no changes in benefits since the prior valuation. II II MI GRS ■ ■ ■ 3 ■ Analysis of Chance in Employer Contribution ■ The components of change in the required employer contribution are as follows: ■ Contribution rate last year 41.37 % ■ Revision in Benefits 0.00 Experience (Gains) or Losses (0.22) ■ Revision in Assumptions/Methods 1.53 ■ Amortization Payment on UAAL (0.78) Normal Cost Rate 0.05 ■ Administrative Expense 0.08 State Contribution 0.24 ■ Contribution rate this year 42.27 % ■ According to Florida Administrative Code (Statute 112), the payroll growth assumption may not ■ exceed the average payroll growth during the last ten years. The ten year average rate this year was equal to ■ 4.82% compared to the assumed rate of 4.0 %. ■ Required Contributions in Later Years ■ The current calculated City contribution requirement is 42.27% of payroll starting October 1, 2015. ■ Under the asset smoothing method, market value gains and losses are recognized over five years. As of ■ September 30, 2014, the market value of assets exceeded the actuarial value by $4,382,212. Once all the gains ■ and losses through September 30, 2014 have been fully recognized in the actuarial value of assets, the ■ employer contribution rate will decrease by roughly 2.3% of payroll unless there are offsetting losses. ■ Another important factor to consider looking down the road is the annual payment on the unfunded actuarial liability (UAL). This payment is computed as a level percentage of covered payroll under the ■ assumption that covered payroll will rise by 4.0% per year. According to Florida Administrative Code (Statute ■ 112), this payroll growth assumption may not exceed the average payroll growth during the last ten years, ■ which is currently 4.82 %. Once the average payroll growth rate over the trailing ten years falls below 4.0 %, ■ which is expected to take place either next year (2015) or in 2016, the actual ten -year average payroll growth ■ rate will need to be used instead of 4.0 %. This will cause an increase in the employer contribution rate. If the ■ current rate this year had been 2.0% instead of 4.0 %, for instance, the employer contribution rate would have ■ increased by approximately 5.4% of covered pay (or nearly $530,000). The average rate of payroll growth ■ during the past six years has been less than 0 %. If this trend continues through 2018, then the UAL will have to ■ GRS ■ ■ 5 CHAPTER REVENUE Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter revenue must be used to provide extra benefits. As of the valuation date, all minimum Chapter requirements have been met. Actuarial Confirmation of the Us e of State Chapte r Money ■ 1. Fire Regular _ $ 704,322 Fire Supplemental 0 Total Base Amount Previous Plan Year 704,322 ■ 2. Fire Regular 1,016,561 Fire Supplemental 0 Total Amount Received for Previous Plan Year 1,016,561 3. Adjustment to Base Amount due to reevaluation of COLA cost 0 4. Excess Funds for Previous Plan Year 312,239 5. Accumulated Excess at Beginning of Previous Year 2,517,628 6. Prior Excess Used in Previous Plan Year 105,951 ■ 7. Accumulated Excess as of Valuation Date (Available for Benefit Improvements) 2,723,916 ■ 8. Fire Regular 704,322 Fire Supplemental 0 Base Amount This Plan Year - Fire 704,322 ■ ■ ■ GRS • • • • • • ■ • • SECTION B • VALUATION RESULTS • • • • • • • • • • ■ • • ■ • • • • • • GRS • In 1. N 6 II PARTICIPANT DATA ■ October 1, 2014 October 1, 2013 ACTIVE MEMBERS . Number 119 118 Covered Annual Payroll $ 9,823,480 $ 9,128,801 II Average Annual Payroll $ 82,550 $ 77,363 ■ Average Age 37.9 36.9 Average Past Service 10.1 9.2 III Average Age at Hire 27.8 27.7 ■ RETIREES & BENEFICIARIES & DROP IN II Number 97 98 Annual Benefits $ 5,315,085 $ 5,313,047 II Average Annual Benefit $ 54,795 $ 54,215 Average Age 60.2 59.4 Il ■ DISABILITY RETIREES III Number 1 1 ■ Annual Benefits $ 40,963 $ 40,160 Average Annual Benefit $ 40,963 $ 40,160 • Average Age 49.3 48.3 ■ TERMINATED VESTED MEMBERS II ■ Number 1 1 Annual Benefits $ 35,771 $ 35,771 III Average Annual Benefit $ 35,771 $ 35,771 II Average Age 46.1 45.1 II II III III II GRS ■ ■ 8 ■ ■ ■ ACTUARIAL VALUE OF BENEFITS AND ASSETS ■ A. Valuation Date October 1, 2014 October 1, 2014 October 1, 2013 7.50% Interest Rate 7.65% Interest Rate ■ III ■ B. Actuarial Present Value of All Projected Benefits for III 1. Active Members a. Service Retirement Benefits $ 60,332,290 $ 58,670,356 $ 52,624,528 . b. Vesting Benefits 4,061,247 3,942,064 3,835,356 c. Disability Benefits 1,795,467 1,753,393 1,675,867 IIII d. Preretirement Death Benefits 820,258 797,995 735,458 e. Return of Member Contributions 136,592 136,082 161,400 ■ f. Total 67,145,854 65,299,890 59,032,609 III 2. Inactive Members a. Service Retirees & Beneficiaries 63,037,423 62,172,374 62,664,931 ■ b. Disability Retirees 686,532 673,349 664,201 c. Terminated Vested Members 371,166 362,313 336,459 . d. Total 64,095,121 63,208,036 63,665,591 ■ 3. Total for All Members 131,240,975 128,507,926 122,698,200 ■ C. Actuarial Accrued (Past Service) Liability per GASB No. 25 105,309,014 103,555,517 98,003,969 III D. Actuarial Value of Accumulated Plan ■ Benefits per FASB No. 35 93,844,530 92,253,650 88,311,151 E. Plan Assets MI 1. Market Value 65,148,932 65,148,932 58,604,435 • 2. Actuarial Value 60,766,720 60,766,720 55,474,480 • F. Unfunded Actuarial Accrued Liability: ■ C -E2 44,542,294 42,788,797 42,529,489 ■ G. Actuarial Present Value of Projected Covered Payroll 83,474,543 82,869,618 81,961,453 III H. Actuarial Present Value of Projected Member Contributions 10,016,945 9,944,354 9,835,374 II I. Accumulated Value of Member III Contributions 8,732,736 8,732,736 7,626,681 J. Funded Ratio: E2/C 57.7% 58.7% 56.6% ill III III II GRS Ill II LIQUIDATION LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY II ■ A. UAAL Amortization Period and Payments Original UAAL Current UAAL R Amortization Date Period Years . Established (Years) Amount Remaining Amount Payment 10/1/1992 30 $ 415,550 8 $ 284,668 $ 39,839 ■ 10/1/1992 30 795,483 8 544,416 76,191 10/1/1996 26 807,234 8 631,042 88,315 ■ 10/1/1997 30 1,201,102 13 1,223,381 113,905 10/1/1999 30 613,865 15 687,723 57,216 ■ 10/1/2000 30 (1,240,378) 16 (1,375,246) (108,901) 10/1/2001 30 857,564 17 975,041 73,770 IN 10/1/2003 30 4,337,161 19 5,123,649 357,345 10/1/2004 30 4,373,725 20 5,182,441 348,487 ■ 10/1/2005 30 (1,004,416) 21 (1,191,758) (77,452) 10/1/2005 30 3,040,117 21 3,607,158 234,428 ■ 10/1/2006 30 2,426,747 22 2,860,796 180,082 10/1/2006 30 1,889,229 22 2,227,137 140,194 ■ 10/1/2007 30 (12,675) 23 (14,730) (900) 10/1/2007 30 (1,424,046) 23 (1,657,593) (101,265) ■ 10/1/2008 30 4,046,900 24 4,646,612 275,993 10/1/2009 30 3,681,910 25 4,162,836 240,796 111 10/1/2010 30 1,249,043 26 1,389,398 78,387 10/1/2010 30 2,256,012 26 2,509,522 141,581 II 10/1/2011 30 (43,572) 26 (48,468) (2,734) 10/1/2011 30 1,378,822 27 1,496,667 82,471 ■ 10/1/2011 30 3,739,943 27 4,059,589 223,695 10/1/2012 30 1,446,560 28 1,508,057 81,266 ■ 10/1/2012 30 (161,237) 28 (168,091) (9,058) 10/1/2013 30 199,486 29 204,624 10,796 ■ 10/1/2013 30 818,309 29 839,386 44,288 10/1/2013 30 3,401,164 29 3,488,767 184,076 ■ 10/1/2014 30 (408,227) 30 (408,227) (21,113) 10/1/2014 30 1,753,497 30 1,753,497 90,687 all $ 40,434,872 $ 44,542,294 $ 2,842,385 II B. Amortization Schedule The UAAL is being amortized as a level percent of payroll over the number of years remaining in the amortization period. The expected amortization schedule is as follows: ■ Amortization Schedule ■ Year I Expected UAAL 2014 $ 44,542,294 III 2015 44,827,357 2016 45,011,625 ■ 2017 45,082,600 2018 45,026,702 III 2024 44,829,126 2024 41,735,047 2029 34,083,773 ■ 2034 19,340,946 2039 6,041,093 II GRS IN S ■ ■ III 12 U Net actuarial gains in previous years have been as follows: III ■ Change in Employer Year Ended Cost Rate Gain (Loss) ■ 12/31/83 0.77 % $ (111,129) • 12/31/84 0.13 (20,619) 12/31/85 1.27 (227,011) 1 II 12/31/86 0.50 (99,006) III 12/31/88 (1.18) 279,837 12/31/88 0.52 (128,401) ■ 12/31/89 0.41 (106,588) 9/30/90 (1.42) 371,790 III 9/30/91 2.09 (638,650) III 9/30/92 1.61 (476,505) 9/30/93 (1.07) 483,965 . 9/30/94 1.76 (800,443) 9/30/95 0.56 (270,698) • 9/30/96 (1.95) 895,789 II 9/30/97 (3.08) 1,049,747 9/30/98 (2.78) 1,020,121 ■ 9/30/99 (1.89) 722,161 9/30/00 (2.21) 891,463 I ■ 9/30/01 4.44 (1,682,484) 9/30/02 9.11 (3,495,525) • 9/30/03 11.31 (5,238,993) ■ 9/30/04 4.88 (4,373,725) 9/30/05 3.04 (3,040,117) III 9/30/06 1.44 (1,889,229) 9/30/07 (0.01) 12,675 in 9/30/08 2.33 (4,056,993) IN 9/30/09 2.16 (3,681,910) 9/30/10 1.25 (2,256,012) ■ 9/30/11 2.12 (3,739,943) 9/30/12 (0.09) 161,237 • 9/30/13 0.12 (199,486) ■ 9/30/14 (0.22) 408,227 • III III IIII 11 GRS ■ 1 II III 14 The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so ■ it is important that they are in line with the actual experience. The following table shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few years: ■ Investment Return Salary Increases ■ Year Ending Actual I Assumed Actual I Assumed 12/31/1977 7.6 % 7.0 % . 10.3 % ■ 12/31/1978 7.0 7.0 21.3 % (2 years) 12/31/1979 7.5 7.0 10.3 ■ 12/31/1980 7.9 7.0 19.0 (2 years) 12/31/1981 9.0 7.0 30.5 7.0 • 12/31/1982 11.9 7.0 11.0 7.0 12/31/1983 13.9 7.0 6.4 7.0 • 12/31/1984 11.1 10.0 8.8 10.0 III 12/31/1985 18.7 10.0 14.5 10.0 12/31/1986 13.4 10.0 11.4 10.0 . 12/31/1987 10.3 10.0 19.7 10.0 12/31/1988 9.8 10.0 6.1 10.0 II 12/31/1989 14.8 10.0 12.8 10.0 9/30/1990 (9 mos.) 1.4 7.5 6.7 7.5 II 9/30/1992 13.1 10.0 8.0 10.0 9/30/1992 11.2 10.0 4.9 10.0 . 9/30/1993 9.7 8.0 4.0 6.5 9/30/1994 3.1 8.0 2.0 6.5 . 9/30/1995 9.3 8.0 10.3 6.5 9/30/1996 9.8 8.0 (0.2) 6.5 ■ 9/30/1997 12.6 8.0 5.9 6.5 9/30/1998 12.4 8.0 6.1 6.5 ■ 9/30/1999 14.1 8.0 13.3 6.5 9/30/2000 13.3 8.5 10.3 6.5 1111 9/30/2001 8.0 8.5 4.8 6.5 9/30/2002 2.3 8.5 12.1 6.5 II 9/30/2003 3.5 8.5 10.0 6.5 9/30/2004 2.2 8.5 11.0 6.5 III 9/30/2005 2.5 8.5 11.7 6.5 9/30/2006 5.3 8.5 13.3 9.2 • 9/30/2007 9.3 8.50 9.2 8.9 . 9/30/2008 3.0 8.25 13.6 8.9 9/30/2009 0.9 8.25 7.6 8.9 III 9/30/2010 2.5 8.25 1.8 8.9 9/30/2011 0.9 8.10 3.7 8.1 ■ 9/30/2012 2.7 7.95 (2.8) 7.1 9/30/2013 8.1 7.80 1.9 8.7 i 9/30/2014 8.8 7.65 7.2 6.0 Averages 8.2 % - -- 8.7 % - -- 1 II ii The actual investment return rates shown above are based on the actuarial value of assets. The actual III salary increase rates shown above are the increases received by those active members who were included in the actuarial valuations both at the beginning and the end of each year. : GRS ■ III II III 16 ■ Actual (A) Compared to Expected (E) Decrements Among Active Employees Numbe r • Added Service & Active • During DROP Disability Terminations Members Year Year Retireme Retirement Death Vested Other Totals End of ■ Ended A E A E A E A E A A AE Year III 9/30/2002 1 10 6 5 0 0 0 0 1 3 4 3 83 9/30/2003 15 1 1 5 0 0 0 0 0 0 0 3 97 . 9/30/2004 22 14 13 4 0 0 0 0 0 1 1 3 105 9/30/2005 1 4 2 1 0 0 0 0 0 2 2 4 102 II 9/30/2006 19 3 0 2 0 0 0 0 1 2 3 4 118 ■ 9/30/2007 5 4 1 3 0 0 0 0 0 3 3 4 119 9/30/2008 5 1 0 5 1 0 0 0 0 0 0 4 123 ■ 9/30/2009 1 6 5 6 0 0 0 0 0 1 1 4 118 9/30/2010 11 4 3 3 0 0 0 0 0 1 1 4 125 II 9/30/2011 0 11 10 8 0 0 0 0 1 0 1 4 114 ■ 9/30/2012 3 2 1 2 0 0 0 0 1 0 1 4 115 9/30/2013 10 7 6 2 0 0 0 0 0 1 1 4 118 111 9/30/2014 3 2 0 1 0 0 0 0 0 2 2 2 119 9/30/2015 1 0 0 2 • 13 Yr Totals * 96 69 48 47 1 0 0 0 4 16 20 47 III * Totals are through current Plan Year only. II II IIII Il III II III I in I III II 11 GRS III III III ■ ■■ ■ ■ ■ ■ Ill ■■ ■ Ill ■ ■ ■ ■ ■ III ■ ■ ■■ ■■■■■ ■■ Ca RECENT HISTORY OF VALUATION RESULTS Number of Employer Normal Cost Active Inactive Covered Annual Actuarial Value of Actuarial Accrued Unfunded AAL Valuation Date Members Members Payroll _ Assets Liability (AAL) (UFAAL) Funded Ratio Amount % of Payroll 10/1/91 87 14 $ 4,140,245 $ 10,146,641 $ 11,062,660 $ 916,019 91.7 % $ 524,296 12.66 % 10/1/92 85 15 4,161,027 11,900,656 13,491,102 1,590,446 88.2 455,150 10.94 10/1/93 89 15 4,423,684 13,756,391 14,807,586 1,051,195 92.9 437,594 9.89 10/1/94 89 16 4,481,528 14,804,836 16,168,850 1,364,014 91.6 539,543 12.04 10/1/95 89 19 4,839,178 16,884,081 18,482,980 1,598,899 91.3 604,768 12.50 10/1/96 90 22 4,695,354 19,269,217 20,604,396 1,335,179 93.5 527,257 11.23 10/1/97 88 39 4,238,988 22,220,848 23,723,850 1,503,002 93.7 361,957 8.54 10/1/98 90 39 4,543,670 24,978,058 25,301,177 323,119 98.7 258,961 5.70 10/1/99 92 40 5,083,063 28,290,983 28,286,754 (4,229) 100.0 217,814 4.29 10/1/00 90 46 5,305,002 31,629,211 29,402,853 (2,226,358) 107.6 72,822 1.37 10/1/01 92 53 5,201,958 33,397,848 34,916,820 1,518,972 95.6 475,187 9.13 10/1/02 83 60 5,143,446 33,877,028 39,432,154 5,555,126 85.9 956,733 18.60 10/1/03 97 60 6,079,095 34,694,072 42,431,717 7,737,645 81.8 979,363 16.11 10/1/04 105 73 6,135,813 35,118,847 47,240,329 12,121,482 74.3 995,918 16.23 10/1/05 102 75 6,763,318 35,386,328 49,620,257 14,233,929 71.3 1,186,288 17.54 10/1/06 118 75 8,152,400 36,863,141 55,565,182 18,702,041 66.3 1,256,931 15.42 10/1/07 119 76 8,806,744 43,503,237 61,054,498 17,551,261 71.3 1,490,649 16.93 10/1/08 123 77 10,130,185 45,330,615 67,141,898 21,811,283 67.5 1,711,705 16.90 10/1/09 118 82 10,350,054 46,448,767 72,211,379 25,762,612 64.3 1,724,525 16.66 10/1/10 125 84 10,506,008 48,521,964 78,046,241 29,524,277 62.2 1,831,347 17.43 10/1/11 114 93 9,781,772 49,140,415 84,384,761 35,244,346 58.2 1,793,275 18.33 10/1/12 115 94 9,375,520 50,548,749 88,420,130 37,871,381 57.2 1,787,181 19.06 10/1/13 118 100 9,128,801 55,474,480 98,003,969 42,529,489 56.6 1,772,505 19.42 10/1/14 119 99 9,823,480 60,766,720 105,309,014 44,542,294 57.7 2,014,298 20.50 oo ■ ■ ■ 20 ACTUARIAL ASSUMPTIONS AND COST METHOD ■ Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using an Individual Entry -Age Actuarial Cost Method having the following characteristics: (i) the annual normal cost for each individual active member, payable from the date of ■ employment to the date of retirement, is sufficient to accumulate the value of the member's benefit at the time of retirement; (ii) each annual normal cost is a constant percentage of the member's year by year projected covered pay. ■ Actuarial gains /(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability. ■ Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full funding credit if assets exceed liabilities) were amortized by level (principal & interest combined) ■ percent -of- payroll contributions over a reasonable period of future years. ■ Actuarial Value of Assets - The Actuarial Value of Assets phases in the difference between the actual and expected investment earnings over a period of 5 years. The Actuarial Value of Assets will be further ■ adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when ■ investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than ■ Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. ■ Valuation Assumptions ■ The actuarial assumptions used in the valuation are shown in this Section. ■ Economic Assumptions ■ The investment return rate assumed in the valuation is 7.50% per year, compounded annually (net after ■ investment expenses). This rate was 7.65% in the previous valuation. The Wage Inflation Rate assumed in this valuation was 3.5% per year. The Wage Inflation Rate is ■ defined to be the portion of total pay increases for an individual that are due to macroeconomic forces including productivity, price inflation, and labor market conditions. The wage inflation rate does not include pay changes related to individual merit and seniority effects. ■ The assumed real rate of return over wage inflation is defined to be the portion of total investment return that is more than the assumed wage inflation rate. Considering other economic assumptions, the ■ 7.50% investment return rate translates to an assumed real rate of return over wage inflation of 4.00 %. ■ The active member population is assumed to remain constant. For purposes of financing the unfunded ■ liabilities, total payroll is assumed to grow at 4% per year. The average increase over the most recent ten years is 4.82 %. Florida administrative code requires using the lesser of the two rates for purposes of ■ amortizing unfunded liabilities as a level percent of pay, but not less than zero. ■ Pay increase assumptions for individual active members are shown below. Part of the assumption for each age is for merit and /or seniority increase, and the other 3.5% recognizes wage inflation, including price inflation, productivity increases, and other macroeconomic forces. ■ GRS ■ III ■ 22 U The rates of retirement used to measure the probability of eligible members retiring during the next year were as follows: I II Retirement Rates II S Age e <50 50 - 54 55 56 - 59 60+ r 10 - 19 N/A 10.0% 40.0% 40.0% 100.0% ✓ 20 40.0% 80.0% 80.0% 100.0% 100.0% II i 21 - 24 40.0% 80.0% 100.0% 100.0% 100.0% II c 25+ 50.0% 80.0% 100.0% 100.0% 100.0% e The rate of retirement is 10% for each year of eligibility for early retirement. U Rates of separation from active membership were as shown below (rates do not apply to members R eligible to retire and do not include separation on account of death or disability). This assumption measures the probabilities of members remaining in employment. ■ III Sample % of Active Members Ages Separating Within Next Year • 20 1.5 1 25 1.5 30 1.5 R 35 1.5 40 2.5 ■ 45 1.5 50 1.0 III 55 0.0 III Rates of disability among active members (75% of disabilities are assumed to be service - connected). Sample % Becoming Disabled ■ Ages within Next Year 20 0.09 % • 25 0.10 ■ 30 0.12 35 0.15 ■ 40 0.20 45 0.34 El 50 0.67 III 55 1.03 1 II i II III ■ GRS ■ ■ • 24 ■ GLOSSARY ■ Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits, ■ (AAL) and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement; future ■ increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in ■ the data, such as marital status; characteristics of future members; future elections made by members; and other items. • Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits ■ between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. • Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based ■ on a given set of Actuarial Assumptions. ■ Actuarial Present Value The amount of funds required to provide a payment or series of payments (APV) in the future. It is determined by discounting the future payments with an assumed interest rate and with the assumed probability each payment will be made. ■ Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at Future Benefits (APVFB) various future times to active members, retired members, beneficiaries receiving benefits, and inactive, nonretired members entitled to either a ■ refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the ■ amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. ■ Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial ■ Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental ■ retirement system typically also includes calculations of items needed for compliance with GASB, such as the Funded Ratio and the Annual ■ Required Contribution (ARC). ■ Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets ■ or a smoothed value in order to reduce the year -to -year volatility of calculated results, such as the funded ratio and the actuarially required ■ contribution (ARC). ■ ■ ■ ■ ■ GRS ■ ■ • ■ 26 ■ Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. GASB Governmental Accounting Standards Board. ■ GASB No. 27 and These are the governmental accounting standards that set the accounting ■ GASB No. 67 rules for public retirement systems and the employers that sponsor or contribute to them. Statement No. 27 sets the accounting rules for the ■ employers that sponsor or contribute to public retirement systems, while Statement No. 67 sets the rules for the systems themselves. ■ Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan year. ■ Open Amortization Period An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30 -year period is used in determining the Amortization Period each year. In theory, if an ■ Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will ■ become smaller each year, either as a dollar amount or in relation to covered payroll. ■ Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial Liability Value of Assets. Valuation Date The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted ■ to this date. ■ ■ ■ IN ■ ■ ■ ■ ■ ■ ■ ■ ■ GRS • • • • • • • SECTION C • PENSION FUND INFORMATION • • • • • • • • • • • • • • • • • • • • • 1 • ■ GRS • NI II SUMMARY OF ASSETS III ■ September 30 Item 2014 2013 ■ A. Cash and Cash Equivalents (Operating Cash) $ 37,728 $ 76,188 III B. Receivables: 1. Member Contributions $ - $ - ■ 2. Employer Contributions 29,486 29,486 3. State Contnbutions - - ■ 4. Investment Income and Other Receivables 426,840 529,123 5. Prepaid Expenses 4,891 4,770 . 6. Total Receivables $ 461,217 $ 563,379 C. Investments Il 1. Short Tenn Investments $ 1,117,490 $ 883,526 1111 2. Domestic Equities 40,676,697 34,703,133 3. International Equities 10,796,441 10,843,168 4. Domestic Fixed Income 14,633,139 12,675,332 5. International Fixed Income 3,814,078 3,586,194 III 7. Real Estate 6,992,603 6,256,541 7. Private Equity - ■ 8. Total Investments $ 78,030,448 $ 68,947,894 D. Liabilities ■ 1. Benefits Payable $ - $ - 2. Accrued Expenses and Other Payables (250,302) (205,141) ■ 3. Total Liabilities $ (250,302) $ (205,141) . E. Total Market Value of Assets Available for Benefits $ 78,279,091 $ 69,382,320 ■ F. Reserves 1. State Contnbution Reserve $ (2,723,916) $ (2,517,628) ■ 2. DROP Accounts (10,406,243) (8,260,257) 3. Total Reserves $ (13,130,159) $ (10,777,885) ■ G. Market Value Net of Reserves $ 65,148,932 $ 58,604,435 F. Allocation of Investments II 1. Short Term Investments 1.43% 1.28% 2. Domestic Equities 52.13% 50.33% ■ 3. International Equities 13.84% 15.73% 1111 4. Domestic Fixed Income 18.75% 18.38% 5. International Fixed Income 4.89% 5.20% III 7. Real Estate 8.96% 9.08% 7. Private Equity 0.00% 0.00% III 8. Total Investments 100.00% 100.00% III ■ III III III . ■ ■ . • •111111111111111• . • •111• ■ . i . i . . . . . . i . . . 4 ACTUARIAL VALUE OF ASSETS EA Valuation Date - September 30 2013 2014 2015 2016 2017 2018 A. Actuarial Value of Assets Beginning of Year $ 60,109,236 $ 66,252,365 $ - $ - $ - $ - B. Market Value End of Year 69,382,320 78,279,091 - - _ C. Market Value Beginning of Year 59,915,233 69,382,320 - - - - D. Non-Investment/Administrative Net Cash Flow 1,209,623 1,709,191 - - - - E. Investment Income El. Actual Market Total: B -C -D 8,257,464 7,187,580 - - E2. Assumed Rate of Return 7.80% 7.65% 7.50% 7.50% 7.50% 7.50% E3. Assumed Amount of Return 4,735,696 5,133,682 - - - - E4. Amount Subject to Phase -In: E1 —E3 3,521,768 2,053,898 - - - - F. Phase -In Recognition of Investment Income Fl. Current Year: 0.2 x E4 704,354 410,780 - - - - F2. First Prior Year 814,394 704,354 410,780 - F3. Second Prior Year (1,002,756) 814,394 704,354 410,780 - - F4. Third Prior Year (125,131) (1,002,756) 814,394 704,354 410,780 - F5. Fourth Prior Year (862,790) (125,131) (1,002,756) 814,394 704,354 410,778 F6. ASOP No. 44 Compliance Adjustment* 669,739 - - - - - F7. Total Phase -Ins 197,810 801,641 926,772 1,929,528 1,115,134 410,778 G. Actuarial Value of Assets End of Year Gl. Preliminary Actuarial Value of Assets End of Year: $ 66,252,365 $ 73,896,879 $ - $ - $ - $ - G2. Upper Corridor Limit: 120 % *B 83,258,784 93,934,909 - - - - G2. Lower Corridor Limit: 80 % *B 55,505,856 62,623,273 - - - - G4. Funding Value End of Year 66,252,365 73,896,879 - - - - G5. Less: State Contribution Reserve (2,517,628) (2,723,916) - - - - G6. Less: DROP Account Balance (8,260,257) (10,406,243) - - - - G7. Final Funding Value End of Year 55,474,480 60,766,720 - - - - G8. Final Market Value End of Year 58,604,435 65,148,932 - - - - II. Difference between Market & Actuarial Value of Assets 3,129,955 4,382,212 - - - - I. Actuarial Rate of Return 8.13% 8.84% 0.00% 0.00% 0.00% 0.00% J. Market Value Rate of Return 13.64% 10.23% 0.00% 0.00% 0.00% 0.00% K. Ratio of Actuarial Value of Assets to Market Value 95.49% 94.40% 0.00% 0.00% 0.00% 0.00% *Per ASOP #44, a total adjustment of $2,291,974 was required on a prospective basis beginning October 1, 2010. The final remaining amount recognized in fiscal year 2013 was $669,739. N 1111 31 INVESTMENT RATE OF RETURN III III Investment Rate of Return MI Year Ended Market Value I Actuarial Value i 12/31/1982 NA % 11.9 % 12/31/1983 15.2 13.9 ■ 12/31/1984 11.7 11.1 12/31/1985 23.1 18.7 . 12/31/1986 11.8 13.4 12/31/1987 5.3 10.3 II 12/31/1988 10.9 9.8 12/31/1989 15.9 14.8 . 9/30/1990 (9 mos.) (1.6) 1.4 9/30/1991 19.6 13.1 III 9/30/1992 12.7 11.2 9/30/1993 13.1 9.7 ■ 9/30/1994 0.2 3.1 9/30/1995 18.8 9.3 ■ 9/30/1996 13.1 9.8 III 9/30/1997 24.5 12.6 9/30/1998 11.4 12.4 III 9/30/1999 11.8 14.1 9/30/2000 9.4 13.3 9/30/2001 (7.7) 8.0 In 9/30/2002 (5.6) 2.3 9/30/2003 15.3 3.5 MI 9/30/2004 6.4 2.2 II 9/30/2005 7.9 2.5 9/30/2006 5.2 5.3 ■ 9/30/2007 12.3 9.3 9/30/2008 (17.1) 3.0 III 9/30/2009 (0.2) 0.9 9/30/2010 8.5 2.5 III 9/30/2012 (0.9) 0.9 9/30/2012 17.1 2.7 . 9/30/2013 13.6 8.1 9/30/2014 10.2 8.8 ■ Average Returns: Last Five Years 9.5 % 4.6 % ill Last Ten Years 5.2 % 4.4 % III All Years 8.7 % 8.2 % i ■ ■ ■ II III • • • • • • • SECTION D • FINANCIAL ACCOUNTING INFORMATION • • • • • • • • • • • • • • • • • • • • • • GRS • UM 1. 1111 32 • FASB NO. 35 INFORMATION ■ A. Valuation Date October 1, 2014 October 1, 2013 II B. Actuarial Present Value of Accumulated ■ Plan Benefits II 1. Vested Benefits a. Members Currently Receiving Payments $ 63,723,955 $ 63,329,132 ■ b. Terminated Vested Members 371,166 336,459 III c. Other Members 27,809,934 21,537,438 d. Total 91,905,055 85,203,029 ■ 2. Non - Vested Benefits 1,939,475 3,108,122 ■ 3. Total Actuarial Present Value of Accumulated Plan Benefits: ld + 2 93,844,530 88,311,151 II 4. Accumulated Contributions of Active Members 8,732,736 7,626,681 II C. Changes in the Actuarial Present Value of • Accumulated Plan Benefits 1. Total Value at Beginning of Year 88,311,151 81,842,921 • 2. Increase (Decrease) During the Period ■ Attributable to: ■ a. Plan Amendment 0 548,633 b. Change in Actuarial Assumptions 1,590,880 635,143 ■ c. Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 10,006,831 10,438,785 III d. Benefits Paid net of DROP activity (6,064,332) (5,154,331) II e. Net Increase 5,533,379 6,468,230 3. Total Value at End of Period 93,844,530 88,311,151 IIII D. Market Value of Assets 65,148,932 58,604,435 III E. Actuarial Assumptions - See page entitled ■ Actuarial Assumptions and Methods I II II III II • II ■ GRS ■ ■ ■ 34 ■ ANNUAL PENSION COST AND NET PENSION OBLIGATION (GASB STATEMENT NO. 27) ■ Employer FYE September 30 2014 2013 2012 ■ Annual Required Contribution (ARC) $ 4,226,469 $ 4,272,215 $ 3,771,466 ■ Interest on Net Pension Obligation (NPO) (19,539) (14,171) (14,935) ■ Adjustment to ARC (28,447) (21,422) (21,118) ■ Annual Pension Cost (APC) 4,235,377 4,279,466 3,777,649 �■ Contributions made 4,226,469 4,353,193 3,771,466 1 Increase (decrease) in NPO 8,908 (73,727) 6,183 NPO at beginning of year (255,411) (181,684) (187,867) ■ NPO at end of year (246,503) (255,411) (181,684) ■ ■ ■ ■ ■ THREE YEAR TREND INFORMATION ■ Fiscal Annual Pension Actual Percentage of Net Pension Year Ending Cost (APC) Contribution APC Contributed Obligation 9/30/2012 $ 3,777,649 3,771,466 99.8 (181,684) ■ 9/30/2013 4,279,466 4,353,193 101.7 (255,411) 9/30/2014 4,235,377 4,226,469 99.8 (246,503) ■ ■ ■ ■ ■ GRS i ■ II 36 III SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS GASB Statement No. 67 III Fiscal year ending September 30, 2015* 2014 ■ Total pension liability Ill Service Cost $ 3,082,630 $ 2,772,724 Interest 8,525,733 8,188,369 Benefit Changes - - Difference between actual & expected experience 707,084 (28,363) III Assumption Changes 1,885,009 - Benefit Payments (5,386,887) (4,292,070) II Refunds (33,508) (50,673) ■ Other (Increase in Excess State Reserve) 312,239 312,239 Other (Rollovers into DROP) 343,843 ■ Net Change in Total Pension Liability 9,092,300 7,246,069 Total Pension Liability - Beginning 116,027,923 108,781,854 . Total Pension Liability - Ending (a) $ 125,120,223 $ 116,027,923 ■ Plan Fiduciary Net Position Contributions - Employer $ 3,930,996 $ 3,522,147 ■ Contributions - Non - Employer Contributing Entity (State) 1,016,561 1,016,561 III Contributions - Members 1,178,818 1,291,773 Net Investment Income 6,012,084 7,187,580 ■ Benefit Payments (5,386,887) (4,292,070) Refunds (33,508) (50,673) ■ Administrative Expense (110,486) (122,390) Other (Rollovers into DROP) - 343,843 El Net Change in Plan Fiduciary Net Position 6,607,578 8,896,771 ■ Plan Fiduciary Net Position - Beginning 78,279,091 69,382,320 Plan Fiduciary Net Position - Ending (b) $ 84,886,669 $ 78,279,091 ■ Net Pension Liability - Ending (a) - (b) 40,233,554 37,748,832 Plan Fiduciary Net Position as a Percentage w of Total Pension Liability 67.84 % 67.47 % Covered Employee Payroll $ 9,823,480 $ 9,925,925 ■ Net Pension Liability as a Percentage of Covered Employee Payroll 409.57 % 380.31 % ■ *. These figures are estimates only. Actual figures will be provided after the end of the fiscal year. II III E • GRS ■ ■ 38 SCHEDULE OF CONTRIBUTIONS i GASB Statement No. 67 ■ Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of September 30, Contribution Contribution (Excess) Payroll Covered Payroll 2014 $ 4,226,469 $ 4,226,469 $ - $ 9,925,925 42.58% 2015* 4,635,318 4,635,318 - 9,823,480 47.19% * These figures are estimates only. Actual figures will be provided after the end of the fiscal year. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ GRS ■ ■ ■ ■ 40 SINGLE DISCOUNT RATE ■ GASB Statement No. 67 ■ ■ A single discount rate of 7.50% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.50 %. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will ■ be made at the current contribution rate and that employer contributions will be made at rates equal ■ to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term ■ expected rate of return on pension plan investments (7.50 %) was applied to all periods of projected benefit payments to determine the total pension liability. ■ Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan's net pension liability, calculated using a single discount rate of 7.50 %, as well as what the plan's net pension liability would be if it were calculated using a single discount ■ rate that is 1- percentage -point lower or 1- percentage -point higher: ■ Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption ■ Current Single Discount 1% Decrease Rate Assumption 1% Increase ■ 6.50% 7.50% 8.50% ■ $ 53,722,691 $ 40,233,554 $ 29,010,275 • * These figures are estimates only. Actual figures will be provided after the end of the fiscal year. ■ ■ ■ ■ ■ ■ ■ ■ ■ GRS ■ • • • • • • • SECTION E • MISCELLANEOUS INFORMATION • • • • • • • • • • • • • • • • • • • • • GRS • III II III 41 I• RECONCILIATION OF MEMBERSHIP DATA II From 10/1/13 From 10/1/12 ■ To 10/1/14 To 10/1/13 Ill A. Active Members 1. Number Included in Last Valuation 118 115 • 2. New Members Included in Current Valuation 3 10 ■ 3. Non - Vested Employment Terminations (2) (1) 4. Vested Employment Terminations 0 0 IIII 5. DROP Participation 0 (5) 6. Service Retirements 0 (1) 7. Disability Retirements 0 0 ■ 8. Deaths 0 0 9. Number Included in This Valuation 119 118 • B. Terminated Vested Members II 1. Number Included in Last Valuation 1 2 ■ 2. Additions from Active Members 0 0 3. Lump Sum Payments/Refund of Contributions 0 0 ■ 4. Payments Commenced 0 (1) 5. Deaths 0 0 II 6. Other 0 0 III 7. Number Included in This Valuation 1 1 C. DROP Plan Members ■ 1. Number Included in Last Valuation 15 11 III 2. Additions from Active Members 0 5 III 4. Retirements 0 (1) 4. Deaths Resulting in No Further Payments 0 0 . 5. Other (Death Resulting in Survivor Benefits) (1) 0 6. Number Included in This Valuation 14 1 III D. Service Retirees, Disability Retirees and Beneficiaries • 1. Number Included in Last Valuation 84 81 ■ 2. Additions from Active Members 0 1 3. Additions from Terminated Vested Members 0 1 ■ 4. Additions from DROP Plan 1 1 5. Deaths Resulting in No Further Payments (1) 0 III 6. Deaths Resulting in New Survivor Benefits 0 0 ■ 7. End of Certain Period - No Further Payments 0 0 8. Other -- Lump Sum Distributions 0 0 ■ 9. Number Included in This Valuation 84 84 II III Ill a III 43 • INACTIVE PARTICIPANT DISTRIBUTION II Deceased with • 1111 Total Vested Disabled Retired Beneficiary Total Total Total Total ■ Age Number Benefits Number Benefits Number Benefits Number Benefits - Under 20 - • 20-24 - - - - - - - 25 -29 - El 30 -34 - - - - - - 35 -39 Ill 40-44 - - - - 1 90,426 - - 45 -49 1 35,771 1 40,963 9 769,715 -1111 - 50 -54 17 1,197,488 2 87,659 ■ 55 -59 - - - - 21 952,526 - - ■ 60 -64 - - - - 24 1,364,586 - ' - 65 -69 8 358,317 1 38,736 • 70 -74 - - - - 5 241,865 3 67,809 75 -79 2 44,018 1 14,517 • ■ 80 -84 - - - - 1 53,573 - - I 11111 85-89 - 1 17,708 1 16,142 - 90 -94 - - _ ■ 95 -99 - - - - - - - - - - - 100 &Over - _ 110 Total 1 35,771 1 40,963 89 5,090,222 8 224,863 I• Average Age 46 49 59 69 . Liability 371,166 686,532 60,778,990 2,258,433 ' ■ ■ ■ ■ ■ ■ II ■ GRS ■ ■ ■ ■ ■ ■ • ■ SECTION F ■ SUMMARY OF PLAN PROVISIONS ■ ■ ■ ■ 1 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ GRS ■ ■ ■ 111 44 ■ SUMMARY OF PLAN PROVISIONS ■ A. Ordinances ■ Plan established under the Code of Ordinances for the City of Boynton Beach, Florida, Chapter 18, NO second IV, and was most recently amended under Ordinance No. 10 -016 passed and adopted on its second reading on August 3, 2010. The Plan is also governed by certain provisions of Chapter 175, ■ Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code. 1111 B. Effective Date ■ Date was not provided. 111 C. Plan Year October 1 through September 30 D. Type of Plan Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer ■ plan. ■ E. Eligibility Requirements ■ All full -time firefighters are eligible to participate. ■ F. Credited Service ■ Service is measured as the total length of employment for which the firefighter received ■ Compensation from the City and made Member Contributions to the plan. No service is credited for any periods of employment for which the member received a refund of their contributions. ■ G. Compensation ■ Cash compensation exclusive of bonuses and incentive pay, but including overtime earnings not to ■ exceed 300 hours and lump sum payment of accumulated unused sick and vacation hours, but not to exceed the number of accumulated sick and vacation hours as of September 27, 2013. ■ H. Final Average Compensation (FAC) ■ The average of Compensation over the highest 3 years during the last 10 years of Credited Service. ■ I. Normal Retirement ■ Eligibility: A member may retire on the first day of the month coincident with or next ■ following the earlier of: ■ (1) age 55 and 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. ■ Benefit: 3.00% of FAC multiplied by years of Credited Service. ■ ■ GRS 1 U • 46 Normal Form of Benefit: Payable until death or recovery from disability; other options are also available. COLA: Each disability retiree who retires on or after December 1, 2006 will receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after retirement. ■ N. Death in the Line of Duty ■ Eligibility: Members are eligible for survivor benefits after the completion of 10 or more years of Credited Service. Benefit: Spouse will receive 2.5% of the member's FAC multiplied by years of Credited Service. ■ Normal Form of Benefit: Paid until death or remarriage of spouse. COLA: Each surviving spouse whose benefits began on or after December 1, 2006 will ■ receive a 2.0% increase in benefits on October 1st of each year beginning 5 years after benefits began. ■ The beneficiary of a plan member with less than 10 years of Credited Service at the time of death will receive a refund of the member's accumulated contributions. O. Other Pre - Retirement Death ■ Eligibility: Members are eligible for survivor benefits after the completion of 10 or more years of Credited Service. ■ Benefit: Spouse will receive 2.5% of the member's FAC multiplied by years of Credited Service. ■ Normal Form of Benefit: Paid until death or remarriage of spouse. ■ COLA: Each surviving spouse whose benefits began on or after December 1, 2006 will receive a 2.0% increase in benefits on October 1s of each year beginning 5 years after benefits began. • The beneficiary of a plan member with less than 10 years of Credited Service at the time of death ■ will receive a refund of the member's accumulated contributions. ■ P. Post Retirement Death ■ Benefit determined by the form of benefit elected upon retirement. ■ Q. Optional Forms ■ In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Single Life Annuity or the 50 %, 66 2/3 %, 75% and 100% Joint and Survivor options. A Social Security option is also available for members retiring prior to the time they are eligible for Social Security retirement benefits. GRS • 48 Y. Deferred Retirement Option Plan Eligibility: Plan members who have less than 30 years of Credited Service but have met one of the following criteria are eligible for the DROP: (1) age 55 with 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. Members who meet eligibility must submit a written election to participate in the DROP. Benefit: The member's Credited Service and FAC are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and FAC. Maximum DROP Period: The earlier of 5' years of participation in the DROP or 30 years of employment. ' Interest Credited: The member's DROP account is credited at an interest rate based upon the option chosen by the member. Members must elect from 1 of the 3 following options: 1. Gain or loss at the same rate earned by the Plan, or 2. Guaranteed rate of 7 %, or 3. The rate earned by a self - directed account utilizing mutual funds selected by the Board. • Normal Form of Benefit: Options include a lump sum or equal periodic payments. II COLA: Each member who enters the DROP on or after December 1, 2006 will receive a 2.0% increase in benefits on October 1s of each year beginning 5 years after retirement. Z. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed . a City of Boynton Beach Municipal Firefighters' Pension Trust Fund liability if continued beyond the availability of funding by the current funding source. ■ ■ GRS 1 1 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN 1 MEMORANDUM ON REVIEW OF INTERNAL CONTROL STRUCTURE 1 September 30, 2014 1 1 1 1 1 1 DAVIDSON, JAMIESON & CRISTINI, P.L. Certified Public Accountants 1 1 1 1 1 1 Davidson, Jamieson & Cristini, P.L. ' Certified Public Accountants 1956 Bayshore Boulevard Dunedin, Florida 34698 -2503 I (727)734 -5437 or 736 -0771 FAX (727) 733 -3487 Member Members of the Firm American Institute of John N. Davidson, CPA, CVA Certified Public Accountants I Harry B. Jamieson, CPA Florida Institute of Richard A. Cristini, CPA, CPPT, CGFM Certified Public Accountants Jeanine L. Bittinger, CPA, CPPT 1 February 10 2015 1 Board of Trustees I City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Florida 1 In planning and performing our audit of the financial statements of the City of Boynton Beach Firefighters' Pension Plan (Plan) as of and for the year ended September 30, 2014, in accordance 1 with auditing standards generally accepted in the United States of America, we considered the Plan's internal control over financial reporting (internal control) as a basis for designing our I auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control. Accordingly, we do not express an opinion on the effectiveness of the Plan's internal control. I Our consideration of internal control was for the limited purpose described in the preceding I paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified certain • deficiencies in internal control that we consider to be significant deficiencies. I A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned I functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements I will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. 1 1 1 1 1 I A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less than severe than a material weakness, yet important enough to merit attention by those 1 charged with governance (the Board of Trustees). We consider the following deficiencies in the Plan's internal control to be significant deficiencies: 1 Current Year 1 1. SSAE No. 16, SOC 1, Type 2 Report on a Description of a Service Organization's System and the Suitability of the Design I and Operating Effectiveness of Controls related to USF Affiliate Services, Inc. Affiliate Fiduciary and Investment Support Services 1 — Including Salem Trust Company (Salem) 1 1 1 1 1 1 1 1 1 I 1 1 1 2 1 1 I I Current Year I The SSAE No. 16, SOC 1, Type 2 report dated February 2, 2015 provided an adverse report on the effectiveness of the Service Organization's system of internal control policies and procedures. I We recommend that the Board continue to monitor the correction of the findings in the report. We further recommend that the complementary user entity controls at the Plan level (copy 1 enclosed) should be documented and enhanced as necessary. Listing the exceptions and the response of the service organization's management alone is not sufficient. The Board must I document its own conclusions. 1 1 1 1 1 1 1 1 1 1 . 1 3 i I . 1 Complementary User Entity Controls I Instructions and information p rovided to Salem are in accordance with the I provisions of the servicing agreement, trust agreement, or other applicable governing agreements or documents between Salem and the Plan. 1 Timely written notification of changes to Salem, its objectives, participants, and investment managers is adequately communicated thereto. I Timely written notification of changes in the designation of individuals authorized I to instruct Salem regarding activities, on behalf of the Plan, is adequately communicated thereto. 1 Timely review of reports provided by Salem of trust account balances and related activities is performed by the Plan and written notice of discrepancies is provided I to Salem. ° Timely written notification of changes in related parties for purposes of 1 identifying parties -in- interest transactions is adequately communicated to Salem. 1 1 1 1 1 4 1 1 1 * * * * ** We ill review the status of these comments during our next audit engagement. We have already d g a gg Y 1 discussed many of these comments and suggestions with Plan personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. 1 This communication is intended solely for the information and use of management and is not intended to be and should not be used by anyone other than these specified parties. 11 1 DAVIDSON, JAMIESON & CRISTINI, P.L. 1 1 11 1 1 1 1 1 1 1 5 1 1 1 1 1 CITY OF BOYNTON BEACH 1 FIREFIGHTERS' PENSION PLAN 1 FINANCIAL STATEMENTS September 30, 2014 and 2013 1 1 1 1 1 1 1 . . DAVIDSON, JAMIESON & CRISTINI, P.L. Certified Public Accountants 1 1 1 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN 1 TABLE OF CONTENTS 1 PAGE 1 INDEPENDENT AUDITOR'S REPORT 1 1 FINANCIAL STATEMENTS 1 STATEMENTS OF FIDUCIARY NET POSITION 3 STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION 4 1 NOTES TO FINANCIAL STATEMENTS 5 REQUIRED SUPPLEMENTAL INFORMATION ' SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 24 1 SCHEDULE OF THE CITY'S NET PENSION LIABILITY 25 SCHEDULE OF CONTRIBUTIONS 26 1 NOTES TO SCHEDULE OF CONTRIBUTIONS 27 SCHEDULE OF INVESTMENT RETURNS 28 ADDITIONAL INFORMATION ' SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES 29 1 1 1 1 1 1 Davidson, Jamieson & Cristini, P.L. Certified Public Accountants 1956 Bayshore Boulevard I Dunedin, Florida 34698 -2503 (727)734 -5437 or 736 -0771 FAX (727) 733 -3487 Member Members of the Finn American Institute of I Jhn N. Davidson, CPA, CVA Certified Public Accountants Harry B. Jamieson, CPA Florida Institute of Richard A. Cristini, CPA, CPPT, CGFM Certified Public Accountants Jeanine L. Bittinger, CPA, CPPT I The Board of Trustees City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Florida 1 INDEPENDENT AUDITOR'S REPORT Report on Financial Statements I We have audited the accompanying financial statements of City of Boynton Beach Firefighters' Pension Plan (Plan), which comprise the statements of fiduciary net position as of September 30, I 2014 and 2013, and the related statements of changes in fiduciary net position for the years then ended, and the related notes to the financial statements. 1 Management's Responsibility for the Financial Statements The Plan's Board of Trustees is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United I States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. i Auditor's Responsibility I Our responsibility is to express an opinion on these fmancial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable I assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in 1 the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error, in making those risk assessments, the auditor considers internal control relevant to the I Plan's preparation and fair presentation of the fmancial statements, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control. Accordingly, we express no such I opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements. 1 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 1 1 The Board of Trustees City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Florida 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net position of the City of Boynton Beach Firefighters' Pension Plan as of September 30, 2014 and 2013, and the changes in fiduciary net position for the years the ended in accordance with ' accounting principles generally accepted in the United States of America. ' Other Matters Required Supplementary Information 1 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying required supplementary information on pages 24 through 28 of the City of Boynton Beach Firefighters' Pension Plan is required by Governmental Accounting 1 Standards Board Statement No. 67 and is not a required part of the basic financial statements. The additional information on page 29 is presented for purposes of additional analysis and is also not a required part of the basic financial statements. Such information has been subjected to the ' auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards ' generally accepted in the United States of America. In our opinion, the above information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 1 Other Information Management has omitted the Management's Discussion and Analysis that accounting principles ' generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial ' statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fmancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. A 4.g.:1 e L • D*4•444071 )° 0-0 January 9, 2015 1 1 2 1 ' CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN STATEMENTS OF FIDUCIARY NET POSITION A September 30, 2014 and 2013 Assets 1 2014 2013 Cash $ 37,728 $ 76,188 I Receivables: Employer 29,486 29,486 I Interest and dividends 71,836 101,023 Broker - dealers 355,004 428,100 I Total receivables 456,326 558,609 I Investments at fair value: U.S. Government obligations 3,031,550 2,842,961 U.S. Government agency obligations 1,795,395 - 1 Municipal obligations 424,383 1,029,533 Domestic corporate obligations 3,682,032 5,135,997 1 1 Domestic fixed income investment fund 5,699,779 3,666,841 International fixed income investment fund 3,814,078 3,586,194 Domestic stocks 19,540,998 16,395,328 1 Domestic equity investment funds 21,135,699 18,307,805 I Real estate investment funds 6,992,603 6,256,541 International equity investment fund 10,796,441 10,843,168 I Temporary investments 1,117,490 883,526 I Total investments 78,030,448 68,947,894 Prepaid expenses 4,891 4,770 1 Total assets 78,529,393 69,587,461 1 Liabilities Accounts payable 66,940 42,073 1 Accounts payable, broker - dealers 183,362 163,068 ... 205 Total liabilities 250,302 205,141 , 1 Net position restricted for pensions $ 78,279,091 $ 69.382,320 I 1 i See Notes to Financial Statements. 3 CITY OF BOYNTON BEACH 1 FIREFIGHTERS' PENSION PLAN STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION 1 Years ended September 30, 2014 and 2013 2014 2013 1 Additions: Contributions: Employer $ 3,522,147 $ 3,648,871 Plan members 1,191,111 1,118,336 Plan members, buy -back 100,662 50,056 Rollover to DROP 343,843 112,892 1 Total contributions 5,157,763 4,930,155 Intergovernmental revenue: 1,016,561 897,536 1 Chapter 175 state excise tax rebate Total intergovernmental revenue 1,016,561 897,536 I Investment income (loss): Net appreciation (depreciation) in fair value of investments 5,419,290 7,013,192 Interest 345,754 323,708 Dividends 1,691,112 1,196,512 I Commission recapture 1,148 1,962 Class action settlement 661 2,261 Other 5,235 451 I Total investment income 7,463,200 8,538,086 I Less i nvestment expenses 275,620 280,622 Net investment income 7,187,580 8,257,464 1 Total additions 13,361,904 14,085,155 Deductions: I Benefits: Age and service 3,804,080 3,816,782 Disability 40,410 44,373 Beneficiaries 222,880 192,622 I Drop payments Refunds 224,700 417,950 50,673 47,760 Administrative expenses 122,390 98,581 1 Total deductions 4,465,133 4,618,068 Net increase in net position 8,896,771 9,467,087 1 Net position restricted for pensions: Beginning of year 69320 59,915,233 1 End of year $ 78,279,091 $ 69,382,320 1 See Notes to Financial Statements. 1 4 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1. Description of the Plan I The following brief description of the Boynton Beach Firefighters' Pension Plan (Plan) is provided for general information purposes only. Participants should refer to the Plan Agreement for more complete information. I General - The Plan was created in 1958 by Section 21 -95 of an Ordinance adopted by the City of Boynton Beach, Florida. This Ordinance was substantively amended in I 1978, 1983, 1993, 2000 and 2002. The Plan is a defined benefit pension plan covering all full -time firefighters of the I City of Boynton Beach, Florida (City). Participation in the Plan is required as a condition of employment. The Plan provides for pension, death and disability benefits. In addition, the Plan is a local law plan subject to provisions of Chapter 175 of the State of Florida I Statutes. The Plan, in accordance with the above statutes, is governed by a five member I pension board. Two firefighters, two City residents and a fifth member elected by the other four members constitute the pension board. The Fire Chief occupies an exofficio, non - voting position on the board of trustees. The Chief shall have the opportunity to participate in all board discussions and activities but shall not be counted for the purpose of a quorum ' nor shall he be entitled to move or second the adoption of any issue or vote on any matter before the board. The City and the Plan participants are obligated to fund all Plan costs based upon actuarial valuations. The City establishes benefit levels while the board 1 establishes the actuarial methods followed by the Plan. During the fiscal year ended September 30, 2014 the Plan's I membership consisted of: Retirees and beneficiaries: Currently receiving benefits 87 1 I Drop Retirees 33 Terminated employees entitled to benefits but not yet receiving them 1 1 Total 121 I Current employees: Vested 48 i Nonvested 77 1 Total 125 I At September 30, 2013, the date of the most recent actuarial valuation, there were 111 retirees and beneficiaries receiving benefits. I 5 I CITY OF BOYNTON BEACH FIREFIGHTERS PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 I 1. Description of Plan (Continued) I Pension Benefits - The pension plan provides retirement, death and disability benefits for its participants. A participant may retire with normal benefits after reaching age 55 and accumulating 10 or more years of credited service or at 20 years of service I without regard to age. Normal retirement benefits are based on 3.0% of the participant's final average salary times the number of his or her credited years of service. The final average salary for purposes of calculating benefits is the participant's average salary during I the three highest years of the last ten years of creditable service prior to retirement. Salary excludes bonuses and incentive pay received by a firefighter during that three year period. I A participant with 10 or more years of credited service is eligible for early retirement. These benefits begin upon application on or after reaching age 50 and are computed the same as normal retirement, based upon the participant's final average salary I and credited service at the date of termination. Benefits are reduced 3% per year for each year by which the participant's age at retirement preceded the participant's normal retirement age. 1 There have been revisions in benefits since the 2012 valuation to reflect Senate Bill 1128. The definition of pensionable compensation has been changed to limit overtime I pay to 300 hours per year effective September 27, 2013 and to limit the number of accumulated unused sick and vacation hours to the lesser of the number of hours accumulated as of September 27, 2013 and the number of hours cashed out at retirement. This change caused an initial increase in the employer contribution of 0.72% of covered 1 payroll due to the fact the current average accumulated sick and vacation hours exceed the average amounts assumed for actuarial valuation purposes. Over time, however, this change will reduce the cost of the Plan. I Cost of Living Adjustment - The Plan provides for a 2% annual cost - of - living adjustment (COLA) commencing five years after retirement from the City or entry into the I DROP Plan. This becomes available effective December 1, 2011 for all members who retire or enter into the DROP on or after December 1, 2006; eligible members also includes all retirees electing early retirement and all disability retirees who enter pay status on or I after December 1, 2006. 1 The actuarial cost of this benefit was financed by an increase in the participants contribution rate from 7% to 12 %. Ad Hoc Supplemental Benefits - Certain retirees are eligible to receive annual I distributions funded exclusively with available Chapter 175 premium tax revenue. Terms of the benefit provide that each eligible retiree shall receive a distribution of available funds for up to five hundred dollars per year of credited service for each year of credited I service in the Plan not to exceed twenty years. 1 6 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 I 1. Description of Plan (Continued) I Deferred Retirement Option Plan - Any Plan participant who is eligible to receive an early or normal retirement pension may elect to participate in a deferred retirement option plan (DROP) while continuing his or her active employment as a firefighter. Upon I participation in the DROP, the participant becomes a retiree for all Plan purposes so that he or she ceases to accrue any further benefits under the pension plan. Normal retirement payments that would have been payable to the participant as a result of retirement are I accumulated and invested in the DROP to be distributed to the participant upon his or her termination of employment. Participation in the DROP ceases for a Plan participant after the earlier of 5 years or the attainment of 30 years of service. 1 An employee's account in the DROP program shall earn interest in one of three ways. The selection of the earnings program may be changed each year in January. The I options are summarized as follows: A. Gain or loss interest at the same rate as the Plan; or, I B. C. At an annual fixed rate of seven percent (7 %); or, A combination of the fixed and variable rates Supplemental Pension Distributions - The Board of Trustees each year may I approve a supplemental distribution from a net actuarial gain as calculated by the Plan's actuary. The distribution shall be paid to the extent of the actuarial gains attributable to retirees and beneficiaries which have been set aside in a supplemental pension reserve. In ' years in which the Plan's actuarial gain is sufficient to support the payment of a thirteenth check, the payment shall be made in December. The Board did not approve a supplemental distribution for the fiscal years ended September 30, 2014 and 2013. I Disability Benefits - Disability benefits for service related disabilities are paid to a participant for life. Benefits are calculated as 66 2/3% of the participant's salary at the I time of retirement. This amount is reduced by any social security and workers' compensation benefits received and will not be less than 42% of the participant's average monthly salary. 1 Disability benefits for non - service related disabilities are paid to a participant for life. Benefits are calculated using a 2 'h% accrual rate with a minimum of 25% of the I participant's final average salary. Death Benefits - Preretirement death benefits for participants with at least 10 years I of service are payable until the spouses death or remarriage. Benefits are calculated at 2 %% of the participant's average final salary at the time of death. Beneficiaries of participants who die prior to vesting will receive a refund of the participants accumulated I contributions. 1 7 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 I 1. Description of Plan (Continued) I Post retirement death benefits are payable to the participant's eligible widow depending on the survivor's benefit selected. I Refund of Participant Contributions - A participant who terminates employment and is ineligible for pension benefits is refunded his or her contribution without interest. 2. Summary of Significant Accounting Policies I Basis of Accounting - Basis of accounting is the method by which revenues and expenses are recognized in the accounts and are reported in the financial statements. The accrual basis of accounting is used for the Plan. Under the accrual basis of accounting, I revenues are recognized when they are earned and collection is reasonably assured, and expenses are recognized when the liability is incurred. Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan as calculated by the Plan's actuary, are recognized as revenue when due and the City has I made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Basis of Presentation - The accompanying financial statements are presented in • accordance with Governmental Accounting Standards Board (GASB) Statement 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined I Contribution Plans and the Codification of Governmental Accounting and Financial Reporting Standards which covers the reporting requirements for defined benefit pensions established by a governmental employer. The accompanying financial statements include I solely the accounts of the Plan which include all programs, activities and functions relating to the accumulation and investment of the assets and related income necessary to provide the service, disability and death benefits required under the terms of the Plan Ordinance I and the amendments thereto. Valuation of Investments - Investments in common stock and bonds traded on a I national securities exchange are valued at the last reported sales price on the last business day of the year; securities traded in the over - the - counter market and listed securities for which no sale was reported on that date are valued at the mean between the past reported I bid and asked prices; investments in securities not having an established market value are valued at fair value as determined by the Board of Trustees. The fair value of an investment is the amount that the Plan could reasonably expect to receive for it in a current sale between market participants, other than in a forced or liquidation sale. Purchases and I sales of investments are recorded on a trade date basis. 1 1 8 1 i 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN 1 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 2. Summa of Significant Accounting Policies Continued Summary l: g (Continued) I The Plan's investments include an alternative investments in the U.S. Real Estate Investment Fund, the ASB Real Estate Fund and the Princeton Futures Fund. These funds are privately placed and operates in a manner comparable to a mutual fund in many 1 respects. The funds invest in a diverse portfolio of real estate, futures, options and certain other investments with varying market capitalizations. I The investments in the underlying funds are generally valued daily at fair value as determined by the management of the fund by reference to the value of the underlying securities, if available, or by the valuation of a security as provided by the general partner I or investment manager, if the securities are not publicly traded. While the fund manager use its best judgment in estimating the fair values of underlying securities, there are inherent limitations in any estimation technique. Therefore, the values of such securities I are not necessarily indicative of the amount that could be realized in a current transaction. The fair values may differ significantly from the values that would have been used had a ready market for the underlying securities existed, and the differences could be material. I Future confirming events will also effect the estimates of fair value, and the effect of such events on the estimates of fair value could be material. These alternative investment funds expose the Plan to certain risks, including 1 liquidity risks, counterparty risks, foreign political, economic and governmental risks, and market risk. In addition, these investments may have initial lock -up periods, as well as restrictions for liquidating positions in these funds, that make the investments non - current 1 and non - marketable. Investment income is recognized on the accrual basis as earned. Unrealized I appreciation in fair value of investments includes the difference between cost and fair value of investments held. The net realized and unrealized investment appreciation or depreciation for the year is reflected in the Statement of Changes in Plan Net Assets. 1 Custody of Assets - Custodial and investment services are provided to the Plan under contract with a national trust company having trust powers. The Plan's investment I policies are governed by Florida State Statutes and ordinances of the City of Boynton Beach, Florida. I Authorized Plan Investments - The Board recognizes that the obligations of the Plan are long -term and that its investment policy should be made with a view toward performance and return over a number of years. The general investment objective is to 1 obtain a reasonable total rate of return defined as interest and dividend income plus realized and unrealized capital gains or losses commensurate with the prudent investor rule and Chapter 175 of the Florida Statutes. 1 1 9 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN ' NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 2. Summary of Significant Accounting Policies (Continued) 1 Permissible investments include obligations of the U.S. Treasury and U.S. agencies, high capitalization common or preferred stocks, pooled equity funds, high quality bonds or notes, foreign securities and fixed income funds. In addition, the Board requires ' that Plan assets be invested with no more than 70% in stocks and convertible securities measured at cost at the end of each reporting period. Further information regarding the permissible investments from the Plan can be found in the Statement of Investment Policies 1 and Objectives. Actuarial Cost Method - The Plan changed its actuarial cost method from the ' Frozen Entry Age to the Entry Age Normal Method for funding purposes as of October 1, 2003. This method allocates the actuarial present value of each participant's projected benefit on a level basis over the participant's earnings from the date of entry into the Plan through the date of retirement. Reporting Entity - The financial statements presented are only for the Plan and are not intended to present the basic financial statements of the City of Boynton Beach, 1 Florida. The Plan is included in the City's Comprehensive Annual Financial Report 1 (CAFR) for the years ended September 30, 2014 and 2013, which are separately issued documents. Anyone wishing further information about the City is referred to the City's CAFR. The Plan is a pension trust fund (fiduciary fund type) of the City which accounts for the single employer defined benefit pension plan for all City Firefighters. The 1 provisions of the Plan provide for retirement, disability, and survivor benefits. Funding Policv - Participants are required to contribute 12.0% of their annual ' earnings to the Plan. Prior to 1986, contributions to the Plan were made on an after -tax basis. Subsequent to this date, contributions are made on a pre -tax basis pursuant to an amendment to the Plan. These contributions are designated as employee contributions 1 under Section 414(h)(2) of the Internal Revenue Code. Contribution requirements of the Plan's participants are established and may be amended by the City of Boynton Beach, Florida. A rehired member may buy back one or more years of continuous past service by paying into the Plan the amount of contributions that the participant would otherwise have paid for such continuous past service, plus the interest that would have been earned had such funds been invested by the Plan during that time. ' 10 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN ' NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 1 2. Summary of Significant Accounting Policies (Continued) rY � g I The City's funding policy is to make actuarially computed monthly contributions to the Plan in amounts, such that when combined with participants' contributions and the State insurance excise tax rebate, all participants' benefits will be fully provided for by the I time that they retire. The City's actuarially determined contribution rate for the year ended I September 30, 2014 and 2013 was 37.5% and 34.91 %, respectively. This rate consists of 19.42% and 15.97% of member salaries to pay normal costs plus 17.73 and 18.94% to amortize the unfunded actuarially accrued liability pursuant to the September 30, 2013 I actuarial valuation. Administrative Costs - All administrative costs of the Plan are financed through employee contributions and charges against the DROP accounts and supplemental I distributions. Cash - The Plan considers money market and demand account bank and broker- ' dealer deposits as cash. Temporary investments, shown on the balance sheet are composed of investments in short-term custodial proprietary money market funds. I Federal Income Taxes - A favorable determination letter indicating that the Plan is qualified and exempt from Federal income taxes was not issued by the Internal Revenue Service. The Board believes that the Plan is designed and continues to operate in I compliance with the applicable requirements of the Internal Revenue Code. Use of Estimates - The preparation of fmancial statements in conformity with I generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the fmancial statements and the reported I amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events - Management has adopted the provisions set forth in GASB I Statement No. 56, Subsequent Events and considered subsequent events through the date of the audit report which is the date that the financial statements were available to be i issued. 1 1 1 11 1 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS I September 30, 2014 and 2013 1 2. Summary of Significant Accounting Policies (Continued) i'Y l: 1: New Accounting Pronouncements - Governmental Accounting Standards Board I (GASB) 67, Financial Reportingfor Pension Plans and GASB 68, Accounting & Financial 1 Reporting for Pensions (Employer), address accounting and financial reporting I requirements for pension plan activities. The City of Boynton Beach Firefighters' Pension Fund (Plan) is a single employer pension plan as defined by GASB 67. The requirements for GASB 67 require changes in presentation of the fmancial statements, notes to the financial statements, and required supplementary information. GASB 67 is effective for fiscal years beginning after June 15, 2013. The implementation of GASB 67 did not significantly impact the accounts receivable and investment balances, as they were already accounted for in accordance with GASB 67 requirements and therefore no restatement of I the 2013 balances were necessary. The Plan's implementation consist of the assumptions and actuarial calculation of total and net pension liability, comprehensive footnote disclosures regarding the pension liability calculation and assumptions and increased I investment activity disclosures. 1 3. Deposits and Investments Deposits I At year end September 30, 2014 the carrying amount of the Plan's deposits was $37,728 and the bank balance was $47,796. The bank balance was covered by federal I depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida's Security for Public Deposits Act. Provisions of the Act require that public deposits may only be held at qualified public depositories. The Act requires I each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository I insurance and proceeds from the sale of the securities pledged by the defaulting depository, are assessed against the other qualified public depositories of the same type as the depository in default. 1 Salem Trust Company (Salem) periodically holds uninvested cash in its capacity as custodian for the Plan. These funds exist temporarily as cash in the process of collection I from the sale of securities or mutual funds. 1 1 1 12 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN ' NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 3. Deposits and Investments (Continued) I Investments Investments that are not evidenced by securities that exist in physical or book- I entry form include investments in open -ended mutual or alternative investment funds. The Plan's investments other than cash held by its administrative manager, are 1 segregated into a separate account and managed under separate investment agreements with Schroder Management, Ltd., Anchor Capital Advisors, L.L.C., and DSM Capital Partners, L.L.C. All of these accounts give Salem the custodianship, but give Schroder Management, I Ltd, Anchor Capital Advisors, L.L.C., and DSM Capital Partners the authority to manage the investments. The Vanguard 500 Index Fund and the Vanguard MidCap Fund are open -ended I exchange traded funds and the Manning and Napier Overseas International Fund, PIMCO Diversified Domestic Fixed Income Fund, the LBC Credit Partners Investment Parallel III, L.P., and the Templeton Global Bond Fund are mutual funds. I These assets are invested in accordance with the specific investment guidelines as set forth in the Statement of Investment Policies and Objectives. Investment management I fees are calculated quarterly as a percentage of the fair market value of the Plan's assets managed. The Plan's investments are uninsured and unregistered and are held in custodians' or the Bank's accounts in the Plan's name. The U.S. real estate investment fund, the ASB Real Estate Fund and the LBC Credit Partners Investment Parallel III, L.P., are privately placed funds, which operate as an alternative investment fund which offers their shares at I the net asset value (NAV) of the fund. The NAV is based on the value of the underlying assets owned by the fund minus its liabilities and then divided by the number of shares or I percentage of ownership outstanding. The exchange traded funds are commonly referred to as "ETFs ". ETFs are funds I that trade like other publicly- traded securities and are designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents a partial ownership in an underlying portfolio of securities intended to track a market index. Unlike shares of a mutual fund, which can be bought and redeemed from the issuing fund by all I shareholders at a price based on NAV, only authorized participants may purchase or redeem shares directly from the Fund at NAV. Also, unlike shares of a mutual fund, the shares of the Fund are listed on a national securities exchange and trade in the secondary I market at market prices that change throughout the day. 1 I 13 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 3. Deposits and Investments (Continued) I The Fund invests in a particular segment of the securities market and seeks to track the performance of a securities index that generally is not representative of the market as a whole. 1 The Plan had no investments that individually represented 5% or more of the Plan's net assets available for benefits as of September 30, 2014. 1 Further, the Plan has no instrument that, in whole or in part, is accounted for as a derivative instrument under GASB statement No. 53, Accounting and Financial Reporting I for Derivative Instruments during the current Plan year. The Plan held the following fixed income investments as of September 30, 2014: 1 Rating I Fair Standard Effective & Duration Investment Type Value Poor's (Years) 1 U.S. Government and agency obligations $ 4,826,945 AA 6.7 1 g Y obli g Municipal obligations 424,383 A 5.1 1 Domestic corporate obligations 3,682,032 BBB - AA 9.2 Domestic fixed income investment fund 5,699,779 - - 1 International fixed income investment fund 3,814,078 - - Temporary investment funds 1,117,490 AAA Daily I Total $ 19,564,707 I Interest Rate Risk - Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment in debt securities. Generally, the longer the I time to maturity, the greater the exposure to interest rate risk. Through its investment policies the Plan manages its exposure to fair value losses arising from increasing interest rates. The Plan limits the effective duration of its investment portfolio through the 1 adoption of nationally accepted risk measure bench marks. 1 14 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 3. Deposits and Investments (Continued) I Credit Risk - Credit risk is the risk that a debt issuer will not fulfill its obligations. Consistent with state law the Plan's investment guidelines limit its fixed income investment to a quality rating of `A' or equivalent as rated by one ore more recognized bond rating 1 service at the time of purchase. The Plan' s fixed income portfolio may not include more than 10% of its investments in securities having a quality rating of Baa. 1 Custodial Credit Risk - Custodial credit risk is defined as the risk that the Plan may not recover cash and investments held by another party in the event of a financial failure. The Plan requires all securities to be held by a third party custodian in the name of the I Plan. Securities transactions between a broker - dealer and the custodian involving the purchase or sale of securities must be made on a "delivery vs. payment" basis to ensure that I the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. The investments in mutual funds and investment partnerships are considered unclassified pursuant to the custodial credit risk categories of GASB Statement I No. 3, because they are not evidenced by securities that exist in physical or book -entry form. I Investing in Foreign Markets - Investing in foreign markets may involve special risks and considerations not typically associated with investing in companies in the United States of America. These risks include revaluation of currencies, high rates of inflation, I repatriation restrictions on income and capital, and future adverse political, social, and economic developments. Moreover, securities of foreign governments may be less liquid, subject to delayed settlements, taxation on realized or unrealized gains, and their prices are I more volatile than those of comparable securities in U.S. companies. Foreign Tax Withholdings and Reclaims - Withholding taxes on dividends from 1 foreign securities are provided for based on rates established via treaty between the United States of America and the applicable foreign jurisdiction, or where no treaty exists at the I prevailing rate established by the foreign country. Foreign tax withholdings are reflected as a reduction of dividend income in the statement of operations. Where treaties allow for a reclaim of taxes, the Fund will make a formal application for refund. Such reclaims are I included as an addition to dividend income. Investing in Real Estate - The Plan is subject to the risks inherent in the ownership I and operation of real estate. These risks include, among others, those normally associated with changes in general economic climate, trends in the industry including creditworthiness of tenants, competition for tenants, changes in tax laws, interest rate levels, the availability 1 of financing and potential liability under environmental and other laws. 1 15 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 3. Deposits and Investments (Continued) I Investment Asset Allocation - The Plan's adopted asset allocation policy as of September 30, 2014 is as follows: . i In order to provide for a diversified portfolio, the Board has engaged investment professional(s) to manage and administer the fund. The investment manager(s) are responsible for the assets and allocation of their mandate only and may be provided as an I addendum to this policy with their specific performance obj ectives and investment criteria. The Board has established the following asset allocation targets for the total fund: I Asset Class Target _ Range Benchmark Index Broad Cap Value Equity 20% 15 % -25% Russell 3000 Value 1 Broad Large Cap Growth Equity 20% 15 % -25% Russell 1000 Growth Large Cap Core Equity 5% 0% - 10% S &P 500 1 International Equity 15% 10 % -20% MSCI -World x -U.S. Broad Market Fixed Income 10% 15 % -25% Barclays Int. Aggregate t TIPS* 5% 0 % -7.5% Barclays TIPS Non -Core Global Bond 5% .0%-7% MS Global Brd Mkt x USD Real Estate* 10% 0 % -15% NCREIF Property 1 Alternative Investment* 10% 0 % -20% TBD (mandate appropriate) *Benchmark will default to "broad market fixed income" if these portfolios are not funded. Targets and ranges above are I based on market value of total Plan assets. • The investment consultant will monitor the aggregate asset allocation of the I portfolio, and will rebalance to the target asset allocation based on market conditions. If at the end of any calendar quarter, the allocation of an asset class falls outside of its allowable range, barring extenuating circumstances such as pending I cash flows or allocation levels viewed as temporary, the asset allocation will be rebalanced into the allowable range. To the extent possible, contributions and withdrawals from the portfolio will be executed proportionally based on the most 1 current market value available. The Board does not intend to exercise short-term changes to the target allocation. I Rate of Return - For the year ended September 30, 2014 the annual money - weighted rate of return on pension plan investments, net of pension plan investment expense, was 9.54 percent. The money - weighted rate ofreturn expresses investment I performance, net of investment expense, adjusted for the changing amounts actually invested. 1 16 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 4. Net Increase (Decrease) in Realized and Unrealized Appreciation (Depreciation) of Investments I The Plan's investments appreciated (depreciated) in value during the years ended September 30, 2014 and 2013 as follows: 1 2014 2013 111 Realized Unrealized Realized Unrealized Appreciation Appreciation Appreciation Appreciation (Depreciation) (Depreciation) Total (Depreciation) (Depreciation) Total I Investments at fair value as determined by quoted market price: I U.S. Government obligations $ (75,779) $ 26,305 $ (49,474) $ 79,238 $ (257,882) $ (178,644) U.S. Government agency I obligations (452) 20,569 20,117 - - - Municipal obligations 25,365 10,526 35,891 6,887 (2,623) 4,264 I Domestic corporate obligations (32,193) (20,630) (52,823) 25,182 (235,517) (210,335) Domestic fixed income investment funds - 191,968 191,968 7,830 (206,676) (198,846) I International fixed income investment fund - 84,940 84,940 38,808 (127,360) (88,552) I Domestic stocks 1,138,554 1,194,310 2,332,864 2,551,432 1,550,807 4,102,239 Domestic equity investment funds 716,017 2,152,203 2,868,220 77,428 1,057,961 1,135,389 I Real estate investment funds (3,201) 635,152 631,951 980 720,092 721,072 International equity I investment fund - (644,364) (644,364) - 1,726,605 1,726,605 Net increase (decrease) in realized and unrealized appreciation 1 (depreciation) of investments $ 1,768,311 $ 3,650,979 $ 5,419,290 $ 2,787,785 $ 4,225,407 $ 7,013,192 1 The calculation of realized gains and losses is independent of the calculation of net appreciation (depreciation) in the fair value of plan investments. I Unrealized gains and losses on investments sold in 2014 that had been held for more than one year were included in net appreciation (depreciation) reported in the prior year. 1 17 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN 1 NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 5. Investments I The Plan's investments at both carrying value and cost or adjusted cost as of September 30, 2014 and 2013 are summarized as follows: 1 2014 2013 Market Market I Investment Cost Value Cost Value U U.S. Government obligations $ 3,085,712 $ 3,031,550 $ 2,923,427 $ 2,842,961 U.S. Government agency obligations 1,774,826 1,795,395 - - ' Municipal obligations 399,172 424,383 1,014,849 1,029,533 Domestic corporate obligations 3,512,699 3,682,032 4,946,033 5,135,997 1 Domestic fixed income investment funds 5,556,153 5,699,779 3,715,182 3,666,841 International fixed income investment fund 3,909,610 3,814,078 3,766,666 3,586,194 1 Domestic stocks 13,720,043 19,540,998 11,768,683 16,395,328 Domestic equity investment funds 17,485,632 21,135,699 17,080,429 18,307,805 1 Real estate investment funds 5,077,911 6,992,603 4,977,001 6,256,541 International equity investment fund 9,557,560 10,796,441 8,959,923 10,843,168 1 Temporary investments 1,117,490 1,117,490 883,526 883,526 ' Total investments $ 65,196,808 $ 78,030,448 $ 60,035,719 $ 68,947,894 1 1 1 I 18 1I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 6. Designations ' A portion of the fiduciary net position is designated for benefits that accrue in relation to the DROP account as further described in Note 1. Allocations to the DROP plan account for the years ended September 30, 2014 and 2013 are presented below as determined in the ' TPA's most recent accounting and valuation available for the fiscal years ended September 30, 2014 and 2013: 1 2014 2013 ' Designated for DROP accounts (fully funded) $ 10,406,243 $ 8,260,257 Designated for the supplemental pension distribution reserve (13 check) - - Total designated net position 10,406,243 8,260,257 Undesignated net position 67,872,848 61,122,063 ' Total net position $ 78,279,091 $ 69,382,320 ' 7. Plan Amendments The Plan was amended during the fiscal year ended September 30, 2014 as follows: Plan amended to extend pension trustee terms of office from two to four years as permitted by Section 175.051, Florida Statutes. All pension trustees serving as of January 1, 2014 shall have their current term extended for a two year period. These changes will not have an actuarial impact on the cost of this plan. There were no Plan amendments during the fiscal year ended September 30, 2013. 1 ' 19 1 I CITY OF BOYNTON BEACH FIREFIGIITERS' PENSION PLAN I NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 1 8. Plan Termination I Although it has not expressed an intention to do so, the City may terminate the Plan at any time by a written ordinance of the City Commission of Boynton Beach, duly certified by an official of the City. In the event that the Plan is terminated or contributions to the Plan are 1 permanently discontinued, the benefits of each firefighter in the Plan at such termination date would be non - forfeitable. 9. Commitments and Contingencies 1 As described in Note 1, certain members of the Plan are entitled to refunds of their accumulated contributions, without interest, upon termination of employment with the City I prior to being eligible for pension benefits. At September 30, 2014 and 2013, aggregate contributions from active members of the Plan were approximately $11,100,000 and $9,917,000, respectively. The portion of these contributions which are refundable to 1 participants who may terminate with less than ten years of service has not been determined. 1 10. Risk and Uncertainties The Plan invests in a variety of investment funds. Investments in general are exposed 1 to various risks, such as interest rate, credit, and overall volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the 1 amounts reported in the statements of net assets available for benefits. 1 11. Revisions in Actuarial Assumptions or Methods The investment return assumption was lowered from 7.80% last year to 7.65% in 2013. I This assumption will be reduced by 0.15% each year until the Board's goal of 7.5% is attained as of October 1, 2014. This change caused the employer contribution rate to increase 1 by 1.45% of covered payroll. Certain assumption changes approved by the Board reflecting actual plan experience I over the eight -year period ending September 30, 2013 with regard to withdrawal rates, salary increase rates, disability rates and retirement rates caused a net increase in the employer contribution rate of 0.58% of covered payroll. 1 1 20 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN ' NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 11. Revisions in Actuarial Assumptions or Methods (Continued) The Actuarial Standard of Practice (ASOP) with regard to the mortality assumption has ' recently been revised. ASOP No. 35 Section 4.1.1. now states, "The disclosure of the mortality assumption should contain sufficient detail to permit another qualified actuary to 1 understand the provision madeforfuture mortality improvement. Ifthe actuary assumes zero mortality improvement after the measurement date, the actuary should state that no provision was made for future mortality improvement. " There is currently no margin for future 1 mortality improvement in the current mortality assumption. 1 12. Rent Expense • The Plan and Boynton Beach Police Officers' Pension Fund are obligated under a joint rental operating lease for office space, which expires on September 30, 2015. The base rent of the lease is $981.33 per month plus applicable sales tax and is prorated 50/50 for each ' plan, respectively. During the years ended September 30, 2014 and 2013, rent expense for the Plan under the lease agreement was $6,960 and $6,332, respectively. 13. Net Pension Liability of the City The components of net position liability of the City of Boynton Beach (City) as of September 30, 2014 were as follows: 1 Total Pension Liability $ 116,027,923 Plan Fiduciary Net Position (78,279,091) City's Net Pension Liability $ 37,748,832 1 Plan fiduciary net position as a percentage of total pension liability 67.47% 1 1 1 1 21 1 I CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS 1 September 30, 2014 and 2013 1 13. Net Pension Liability of the City (Continued) I Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of October 1, 2013 using the following actuarial assumptions applied to all measurement periods. 1 Inflation 3.50% ' Salary increases Varies by years of service from 3.5% to 14.0% Investment rate of return 7.65% I Mortality rates were based on the 1983 Group Annuity Mortality Table for males I and females. I The long -term expected rate of return on pension plan investments was determined using a building -block method in which best - estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are I developed for each major asset class. These ranges are combined to produce the long -term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real I rates of return for each major asset class included in the pension plan's target asset allocation (as provided by the Fund's performance monitor) as of September 30, 2014 are summarized in the following table: 1 Target Asset 1 Long -Term Allocation Group Asset Group Real Return Proxy Contribution Domestic equity 7.5% 45.0% 3.4% 1 International equity 8.5% 15.0% 1.3% Domestic bonds 2.5% 15.0% 0.4% I International bonds 3.5% 15.0% 0.5% Real estate 4.5% 10.0% 0.5% I Total real return 6.1% 1 1 22 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2014 and 2013 13. Net Pension Liability of the City (Continued) ' Discount Rate - A singe discount rate of 7.65% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.65 %. The projection of cash flows used to determine this single discount 1 rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on pension plan investments (7.65 %) was applied to all periods of projected benefit I payments to determine the total pension liability. Sensitivity'of the Net Pension Disability to Changes in the Discount Rate - Regarding i the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan's net pension liability, calculated using a single discount rate of 7.65 %, as ' well as what the plan's net pension liability would be if it were calculated using a single discount rate that is 1- percentage -point lower or 1- percentage -point higher: 1 Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption Current Single Discount 1% Decrease Rate Assumption 1% Increase 6.65% 7.65% 8.65% 1 City's net pension I liability $ 46,422,969 $ 37,748,832 $ 30,555,820 1 ' 23 1 1 1 1 1 1 1 1 REOU RED SUPPLEMENTARY INFORMATION 1 1 1 1 1 1 1 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN A SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS I Last Fiscal Year I September 30, 2014 Total pension liability: 1 Service cost $ 2,772,724 Interest 8,188,369 Benefit changes - 1 Differences between actual and expected experience (28,363) Assumption changes Benefit payments, (4,292,070) III Refunds (50,673) Other (increase in excess state reserve) 312,239 Other (rollovers into DROP) 343,843 I Net change in total pension liability 7,246,069 I Total pension liability - beginning 108,781,854 Total pension liability - ending (a) $ 116,027,923 Plan fiduciary net position: Contributions - employer $ 3,522,147 Contributions - non - employer contributing entity (state) 1,016,561 I Contributions - members 1,291,773 Net investment income 7,187,580 1 Benefit payments (4,292,070) Refunds (50,673) Administrative expenses (122,390) 1 Other (Rollovers into DROP) 343,843 Net change in plan fiduciary net position 8,896,771 1 Plan fiduciary net position - beginning 69,382,320 I Plan fiduciary net position - ending (b) $ 78,279,091 Net Pension Liability - Ending (a) - (b) $ 37,748,832 1 Plan fiduciary net position as a percentage of total pension liability 67.47% I Covered employee payroll* $ 9,925,925 Net pension liability as a percentage I of covered employee payroll 380.31% *Actual total covered payroll for the fiscal year ended September 30, 2014. 1 24 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULE OF THE CITY'S NET PENSION LIABILITY Last Fiscal Year I Plan Fiscal Net Position Net Pension Year Total Net as a Percentage of Liability as a Ended Pension Plan Net Pension the Total Pension Covered Percentage of ' September 30, Liability Position Liability Liability Payroll* Covered Payroll 2014 $ 116,027,923 $ 78,279,091 $ 37,748,832 67.47% $ 9,925,925 380.31% *Actual total covered payroll for the fiscal year ending September 30, 2014. 1 1 1 1 1 1 1 1 ' 25 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULE OF CONTRIBUTIONS • Last Fiscal Year 1 ' Actual Fiscal Contribution ' Year Actuarially Contribution as a Percentage Ended Determined Actual Deficiency Covered of Covered September 30, Contribution Contribution (Excess) Payroll* Payroll 2014 $ 4,226,469 $ 4,226,469 $ - $ 9,925,925 42.8% 1 *Actual total covered payroll for fiscal year ending September 30, 2014. 1 1 1 1 1 1 1 1 26 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO THE SCHEDULE OF CONTRIBUTIONS ' September 30, 2014 Last Fiscal Year 1 Valuation date: October 1, 2013 Actuarially determined contribution rates are ' calculated as of October 1, which is two year(s) prior to the end of the fiscal year in which contributions are reported. ' Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal 1 Amortization method Level percentage of payroll, closed Remaining amortization period 23 years Asset valuation method 5 -year smoothed market ' Inflation 3.5% Salary Increases Varies by years of service from 3.5% to 14.0% ' Investment Rate of Return 7.65% Retirement Age Rates vary by age and years of service Mortality 1983 Group annuity Mortality Table for males and females • 1 1 1 1 1 1 27 1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULE OF INVESTMENT RETURNS. 1 Last Fiscal Year 1 September 30, 2014 1 Annual money - weighted rate of return, net of investment expense 9.54% 1 1 1 1 1 1 1 1 1 1 1 28 1 1 1 1 1 1 1 1 1 ADDITIONAL INFORMATION 1 1 1 1 1 1 1 1 1 _1 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN I SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES Years ended September 30, 2014 and 2013 I 2014 2013 Investment Administrative Investment Administrative 1 Expenses Expenses Expenses Expenses Expenses: I Actuary fees $ - $ 27,054 $ - $ 20,735 Administrator's fees 27,393 26,089 Audit fees - 11,000 - 10,500 1 Bank charges - 402 - 346 Computer supplies - 5,581 - 7,089 I Custodial fees 39,836 - 34,514 - Directors' liability insurance 9,063 7,981 DROP Administration 2,500 - 1,500 - 1 Dues and subscriptions - 600 - 600 Investment managers' fees: I ASB Allegiance 15,737 - 26,369 - STW 7,628 16,032 DGHM - - 39,823 - 1 Anchor Capital 45,357 - 48,663 - DSM Capital 98,733 - 64,684 - ' Schroder 32,329 - 18,173 15,537 - 8,07 Legal fees 8,070 Office expenses - 809 - 564 1 Office rent - 6,960 - 6,332 Pension program maintenance - 2,769 3,656 Performance monitor 33,500 - 33,500 - I Seminars and training - 12,586 - 6,619 I $ 275,620 $ 122,390 $ 280,622 $ 98,581 I Percentage of plan net position 0,35% 0.16% 0,40% 0.14% 1 1 1 29 Why Pension Reform is Inevitable By Mike Fitzpatrick 3February2015 The Problem I have been asking questions about the pension budget problem. Tim Howard provided me this spreadsheet. This is the problem from the City's perspective: A note about the chart from Tim Howard: Mike, I have added the General Fund Budgets for the years in the top section under TOTAL -ALL PLANS and what percentage the total pension contributions are as a percentage of the General Fund Budget. Just a reminder that not all the General Employees' Contribution is paid out the General Fund, some is paid from Utilities, Sanitation, Golf. For FY15 about 55% was paid from the General Fund. 10 CITY OF BOYNTON BEACH COMBINED PENSION PLANS Schedule of Employer Annual Required Contributions Fiscal Years 2001 to Date For the Plan Year Ending September 30000 215 214 219 2112 271 2,112 2009 20_9 2071 mig an 2093 02n0 21202 2001 Per Actuarial Valuation Repod Dated as of 00' 10(1/7013 10/1/2017 10/1/2011 10(1(2010 10/1/2009 10/1 /2098 10/1/2007 10'1/2095 10/1/2005 10/1/2004 10/1/2003 10/1/2007 10/1/2001 10/12000 10/1/1999 Beginning Beginning Beginning Beginning End End End End End End End End End End ARC Payment Date 0» olyear of Year 5(2800 9fYo69 ®I- Weekly 0!2550 pf Year 512821 pf Yea( of Yea( 212550 of Yea/ id Year 012020 o / Year Totals TOTAL -ALL PLANS 717001 to flats $ 127679,305 $ 15,559,322 $ 14,398.751 $ 14,516,070 $ 11,284,580 $ 11,269,953 0 11,174,028 $ 8,922328 $ 8,160,632 $ 7,782,097 5 6,374,491 5 5,805,366 9 4,778,967 0 3,538,178 0 1,901,148 9 1,003,194 Add Interest Factor Due to Payment paid One Year Late $ 6,095,558 $ - 5 - $ - $ - 5 483,421 . 8_111_,__26 8 754 9 923,549 $ 776,032 S 442,845 $ 645.360 1 591 158 5 498,602 5 386.800 $ 109,688 1.__M529 $ 133,574.853 81116232 $ 14,398,751 5 14.515.070 5 11,284,580 0 11,703.374 S 12,202.782 0 10 545 877 $ 8938864 5 8224742 $ 7 019 871 $ 8398524 $ 5,277,569 $ 3,924.978 $ 2690,836 $ 1,132723 Annual % Change 8.1% -0.8% 28.6% -4,056 -1796 12.5% 21.4% 8.756 17.2% 9756 21.2% 34.5% 87.7% 84.6% REC 0580/0100/9108 Payroll 50.63% 38359 335394 3080% 24.25% 2430% 24_480/ 23,1096 20.25% 2080% 20.0156 1817% 15.290/ 12_0156 6.3890 363% Crawled Payroll $ 261841 653 $ 42 833 839 9 42 944147 5 47 122 480 9 46 528 603 $ 48 360 319 5 49 845 533 0 46 856172 9 44 055 475 $ 39 542 021 $ 35 082133 5 35 206 645 0 34 520 442 0 32 694,485 $ 32 760,558 $ 31 188020 General Fund Budget $ 72 540113 $ 71 416 503 $ 87 924 736 $ 83 993 840 $ 68 005 831 8 70 491 987 $ 71 430 095 $ 65 730107 $ 72 349 813 $ 61 505 239 $ 53 969 429 0 50 451 174 $ 47 295 418 5 42905,532 $ 40,478,150 City Contributions-All Plans as a % of General Fund Budget 21.46% 20.16% 21.37% 17.63% 17.2856 17.31% 15.1896 13.60% 11.37% 11.41% 11.85% 10.46% 0.30% 4.877% 23056 GENERAL EMPLOYEES PENSION PLAN Regured Employer Colfax/lion (REC) IlPaid on Valuation Dat $ 57,126,382 5 7,273,057 5 6,780,773 $ 6,630,714 5 4602,590 $ 4,998,684 § 4,998,684 0 4,430594 $ 3,500,743 0 3,608,743 9 2,589,456 5 2,631,782 9 2070,631 5 1,423.735 0 1,008294 $ 574.991 Add Interest Factor Due to Payment paid One Year Late 5 2,045,136 0 - 5 - 5 - 5 - S 196,098 . 1___4a8 . 35 $ 369.817 ,S 5 (24,291) $ 218139 5 219,672 L__17_.___2 825 $__110.313 S 38608 $ 20.979 REC Adjusted for Payment after End of Year vs. Beginning $ 59,171,518 5 7,273067 9 6,780,773 9 6 630 714 9 4 502 590 9 5 194 782 5 5 415 919 5 4 800 411 5 3 909 961 $ 3584452 $ 2805595 5 2 851 454 $ 2243.368 9 1 542 574 9 1 039 900 5 595970 Annual % Change 7.3% 23% 47.3% -13.3% 4.1% 12.896 22.8% 9.1% 27.8% -1.6% 27.1% 45.496 48.3% 74.5% ARC as a % of Covered Payroll 18.96% 33.43% 31.35% 27.8096 19.40% 18.43% 19.22% 17.24% 14.70% 14,37% 1391% 13.x% 10.20% 7.3796 5.36% 3.1456 Covered Payroll for Contribution Year 0 348 809788 $ 21 756107 $ 21 629 261 $ 23 851 490 $ 23 209 228 0 25 472 297 9 28182 460 $ 27,652616 $ 28 600 670 $ 24 842 313 $ 21 739 312 5 21 210 529 5 21 994 908 9 20 937 211 5 20 547 816 $ 18 983 570 POLICE PENSION PLAN 653am8 Employer CoNri061lon(REC] if Paid on Valuation Oat 9 38,810,066 9 4,365,259 5 4,095,831 9 4,236,485 $ 3,633,868 $ 3,381,693 $ 3,368,530 5 2959,257 9 2,521,840 0 2331692 $ 2225,603 0 1,895,558 0 1,687,585 0 1,328,815 9 524,5553 0 252199 Add Interest Factor Due to Payment paid One Year Late 9 2181,574 $ - $ - 5 - $ - $ 155,393 0 319,986 $ 285.825 $ 249 314 5 233 468 9 238 648 5 209 464 $ 190 929 9 157 189 9 85 858 $ 60 502 REC Ad /(sled br Payment after End of Year vs. Beginning 9 41991,642 $ 4,365,259 84,09_,____5 5 4.238.485 $ 3,613,668 $ 3,532086 5 3,688,516 5 3,245,062 $ 2,771,154 § 2,56 51101051 § 2,106,022 $ 1,878514 S 1,488,004 . L_= 4 09 $ 31 2701 86/90/0/059701 6.6% 3.3% 16.5% 29% 42% 13.7% 17.156 8.0% 41% 17.0% 12.1% 26.4% 143.4% 95.2% REC as a % of Covered Paymli 28.58% 37.71% 34,67% 3305% 28,86% 28.17% 31 . 9 096 31.52% 29 .79% 32.74% 34 28,60% 25,4591, 22.67% 884% 4.39% Covered Paymli for Contribution Year $ 143 417 109 $ 11 575 236 0 11 834 246 0 12 817 809 6 12 592 795 $ 12 537 968 $ 11532888 $ 10 296 812 $ 9 302 405 $ 7 838 390 8 7 207 008 $ 7 917 021 $ 7382085 0 8 555 316 0 6 807 740 0 7 121 387 FIREFIGHTERS PLAN Required Employer Contribution (REC)11Pald on Valuation Dal 9 31,542855 9 3,930,998 $ 3,522,147 0 3,648,871 $ 3,748,122 $ 2889,576 $ 2808,814 0 2532477 $ 2,030,249 $ 1,841,362 $ 1,559,432 0 1,277,026 9 1,020,851 $ 785,627 $ 373,301 $ 176,004 Add Interest Factor Due l2 Payment paid One Year Late $ 1,568848 9 - $ - 5 - 0 - 0 0__p_1533 9 267 907 $ 225 500 0 233 468 5.__19593 0 182.022 5 134 848 5 110773 9 67 726 1__,t 048 REC Adjusted for Payment after End ofYear us .Beginning 0 33,411,703 9 3,930998 0 3 Li 5 3,148,122 0 3 079 605 5 3099347 0 2000384 5__Z,215,199 5 2074835 $ 1750 0 1435048 0 1 155 699 5 896.402 5 440 577 0 224.052 Annual % Change 11.6% 3.5% 15.9% 4.0% -23% 10.6% 24.1% 8.7% 18.6% 21.6% 24.5% 28.9% 103.5% 96.6% REC es a% of Covered Payroll 28,48% 41.37% 37.16% 349156 29.35% 29.2411, 3059% 31,80% 27.67% 30.68% 28_5296 238786 22.47% 17,23% 430% 441% Covered Payroll for Ceni,but/08 Year 9 117 313 975 $ 9 502 496 $ 9 480 640 $ 10.453 181 $ 10,726 580 $ 10.350 054 $ 10 135 185 $ 8 806 744 $ 8 152 400 9 8 761318 0 6 135 813 $ 6 079 095 $ 5 143 448 $ 5 201 958 $ 5 305 002 5 6 083 063 w , . I made a bar char to put it in perspective: Boynton Beach Pension costs 2001 to 2015 18,000,000 - -- - - - - -- -- — 16,000,000 -1-- — -- - -- — — -- 14,000,000 1 — — — - -- — o a 12,000,000 -I -- -- -- c C d - 10,000,000 — — -- — O r � ,. 0 ben. Empl. 8,000,000 - - -- — — — -- iI -- Police t o Fire ms ui s'. 6,000,000 - -- .— ant , * ' o 4,000,000 — r '- t 2,000,000 ;9 -- — ,' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 By years from 2001 This is simply not a sustainable state of affairs. The way of doing business has to change. The low down conversation is, "Okay, I see that. But you got yours and I helped get you elected, so can't you be a brother and keep it together long enough for me to get my pension ?" The short and correct answer is no. One of my new job responsibilities is to leave the City finances in a better position than I found them. When you are in a hole the first step to getting out of it is to stop digging. Letting things slide for another few years will make financial conditions exponentially more difficult for those who have worked here for only a few years p y y and for the 100s of future hires. There is no longer enough fat to allow kicking the can down the road any more. The current Union body has the misfortune to be living and working when the days of "pay me later" have arrived. Q and A with Tim Howard Some questions I could think of to ask Tim: Q.I need the payments to pension boards over the last 15 years or so. If this is going to take awhile, start with Fire. A. The chart is the answer. Q. I have questions about how this process works. Is it one yearly lump sum? or paid quarterly or monthly? A. The City made their contributions at the end of the fiscal year thru 2008, in 2009 we made the payment on a bi- weekly basis and from 2010 to current we make the contribution at the beginning of the fiscal year, this was changed in order to save interest cost on the contribution for the fiscal year. Q. When do you know how much is going to be needed? A. The amounts are determined by the actuary report that each pension fund has done each year, the process is at the end of the fiscal year we send data for each of the plans to the actuary. So at the end of FY13 (9- 30 -13) we sent information, the pension boards receive the actuary reports usually around Jan or Feb of 2014. That report shows how much the City's required contribution is for FY15 (beginning 10- 1 -14). Q. Are there any projections given for planning? Can you tell how much is going to be needed in two years? Three years? A. The actuary provides tables of history data but does provide a projection for City contribution for future years only the one year, in this case FY15. I am not sure if the pension plans receive anything on projections or if it would have to be requested separately. Q. Is there any auditing to tell if the numbers are correct? A. Once the pension boards accept the actuary report the City uses it to budget the upcoming year's pension contribution. Q. (After I saw the chart) The pension costs nearly doubled 2001 to 2002 and again 2002 to 2003. Do you know why that was? A. 1 don't know specifically but I looked at the actuary reports for those years and I think the increases were due to: 2001 -2002 Police & Fire reports notes the effects of revision of benefits and the funded ratio for the Fire dropped from 107.6% to 95.6% and Police dropped from 96.5% to 91.0 %. General the funded ratio dropped from 104.9% to 95.4 %. 2002 -2003 General- Funded Ratio dropped from 95.4% to 89.4 %, increase in annual amt to amortize unfunded actuarial liability Police- Increase in present value of projected benefits, decrease actuarial value of Plan assets and funded ratio went from 91% to 79.1% Fire - Funded ratio went from 95.6% to 85.9 %, Increase in actuarial present value of projected benefits and no increase in actuarial value of plan assets. (When I read that my first thought was, "and what year were the buyouts ? ") Exhibit A on why there are no raises are in the City Budget this year City property tax revenues and other revenues crashed when the Great Recession occurred. The economy is improving and the 2014 property tax rates means the City in 2015 will have the same property tax revenue... as they had in 2005. A major difference in the 2005 and 2015 budget is nearly $10,000,000 in additional pension costs which have to be paid before nearly anything else. Questions for the Pension Board The City is going to pay the Fire Pension Board $3,930,966 this year. For what? I have sent an email to the pension board requesting a breakdown. My current guess is the money is for: Resetting the assumption rate —If the assumption rate was 8.5% and now is 7% then less money was made and the City is on the hook to make up the difference. Payouts following the crash – When the Great Recession hit there was not enough money to make pension payments without eating into the seed corn, so the Pension Board borrowed from itself and the City is on the hook to pay it back like a mini - mortgage and with interest. Paying for 99 years of free pension payments —Three years of payments by 33 fire fighters were never paid and three years each of investment time was lost before payouts would have normally started. The City is on the hook to make up this loss. Paying for current firefighter retirement benefits – We will see how the numbers add up. My gut belief this is the last and least component of the nearly $4 million. What is going to happen? I see three possible future scenarios. There are probably more, but these are the ones I can think of. 1) The pension boards realize that by driving to maximize pension payouts, if they have not killed the golden goose, they have definitely caused enough trauma to put it on life support with declining vital signs. The boards become pro - active and work with the City to bring City contributions down to 2005 levels in a steep glide pattern. 2) The pension boards stonewalls and the City Commission develops the cojones to drag forth pension reform in an election year. 3) Nobody does anything and the trend continues. When the next minor recession occurs, the financial house of cards comes tumbling down. Draconian reforms are mandated in a time financial panic. INVESTMENT ASSUMPTIONS FOR FLORIDA GOVERNMENTAL DEFINED BENEFIT PLANS NUMBER OF PLANS* Investment Assumption # of Plans 8.5 5 8.3 1 8.25 3 8.05 1 8 148 7.9 23 7.75 74 7.5 117 < 7.5 21 7 48 <7 31 *Not all rates are shown. PERCENTAGE OF PLANS Investment Assumption % of Plans > 8% 2% 8% 30% between 8 and 7.75% 5% 7.75% 15% between 7.75 and 7.5% 3% 7.50% 24% between 7.5 and 7 4% 7% 10% less than 7% 6% (301 plans) 7.9% to 7 %, inclusive 61% Latest available data is taken from the Division of Retirement's fact sheets, but is not necessarily current. The discount rate should be set in consultation with the Board's actuary and investment consultant based on various considerations including asset allocation. Mike Fitzpatrick presentation to fire pension board February 25, 2015 City of BB Pension cost Year Fire Police Gen. Empl. Total of City Budget Pension cost property taxes % of property Pension Plans % of budget collected taxes 2001 176,004 252,199 574,991 1,003,194 40,476,150 2% 20,906,237 5% 2002 373,301 524,553 1,003,294 1,901,148 42,905,532 4% 22,459,682 8% 2003 785,627 1,328,815 1,423,736 3,538,178 47,295,418 7% 23,151,500 15% 2004 1,020,851 1,687,585 2,070,531 4,778,967 50,451,174 9% 25,467,914 19% 2005 1,277,026 1,896,558 2,631,782 5,805,366 53,969,429 11% 27,751,017 21% 2006 1,559,432 2,225,603 2,589,456 6,374,491 61,505,239 10% 32,166,496 20% 2007 1,841,362 2,331,992 3,608,743 7,782,097 72,349,813 11% 39,295,390 20% 2008 2,030,249 2,521,840 3,608,743 8,160,832 65,703,107 12% 39,550,126 21% 2009 2,532,477 2,959,257 4,430,594 9,922,328 71,430,095 14% 35,708,916 28% 2010 2,806,814 3,368,530 4,998,684 11,174,028 70,491,987 16% 30,887,129 36% 2011 2,889,576 3,381,693 4,998,684 11,269,953 68,005,831 17% 26,160,688 43% 2012 3,148,122 3,633,868 4,502,590 11,284,580 63,993,640 18% 26,991,614 42% 2013 3,648,871 4,236,485 6,630,714 14,516,070 67,924,736 21% 27,896,563 52% 2014 3,522,147 4,095,831 6,780,773 14,398,751 71,416,503 20% #DIV /0! 2015 3,930,996 4,365,259 7,273,067 15,569,322 72,540,133 21% #DIV /0! Fire Pension Board questions February 22, 2015 Mike Fitzpatrick 1) Is there a mission statement or written objectives for the Pension Board? 2) Is there a way to have a defined contribution component to pensions and keep the 175 money? 3) Why are there not Executive - summary sections to the Pension reports? 4) I would like a table which shows the breakdown of the various reasons why the City is paying $3.9 million. Something like: Reason Amount Years remaining Buy out #1 $200,000 15 Buy out #2 $200,000 18 Did not make assumption rate in 2009 $300,000 2 Did not make assumption rate in 2010 $500,000 3 Lowering assumption rate in 2011 $500,000 2 Charts adjusted for people living longer $400,000 3 Etc. reasons Total $3,900,000 And then a spread sheet with tabs for future years to estimate future costs. 5) When the pension board spreads a cost it passes on to the City over several years, how does that work? Is there something like an interest component where the Pension board is loaning itself the money to be invested? 6) Assume an employee averages a 3% raise for 15 years and tops out for another 5 and retires at 20 years. What percentage of wages must be paid so that employee can retire at 60 %? Where can I find the formulas for calculating questions like this? 7) Are there any defined contribution plans that do not use 401.K programs? RS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com November 24, 2014 CONFIDENTIAL Ms. Barbara La Due Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Dear Barbara: You have asked us to verify the retirement benefits for the following employee: MACALPINE, Jaime (Vested Termination) Based on the information provided, we have determined that the retirement benefits that have been calculated for the above participant are in accordance with plan provisions. We welcome your questions and comments. Sincerely yours, Peter N. Strong, FSA Senior Consultant and tuary PS /jc Enclosures Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax- related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax- related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. This communication shall not be construed to provide tax advice or legal advice unless it contains one of the following phrases, or substantially equivalent language: "This communication is intended to provide tax advice." Or "This communication is intended to provide legal advice." • Barbara Ladue From: Barbara Ladue [Iadueb @bbpdpension.com] Sent: Thursday, November 20, 2014 11:26 AM To: ' Travis .Robinson @gabrielroeder.com' Cc: 'Pete.Strong @gabrielroeder.com' Subject: Boynton Fire - Verification of Def Vested Benefit - Jaime MacAlpine Attachments: DOC112014.pdf Travis: Please review and verify for the Fire Pension Board the deferred vested benefit for: Jaime MacAlpine (Furtak), 55# 558- 57 -XXXX, terminated employment 10 -05 -2014, has selected 100% Survivor benefit of $1907.87. Benefit is deferred Vested to begin July 1, 2024. Thank you. Barb La Due Original Message From: Scanner [ mailto:faxexecsuitesOgmail.coin] Sent: Thursday, November 20, 2014 12:10 PM To: Barbara Ladue Subject: Send data from MFP07580425 11/20/2014 12:10 Scanned from MFP07580425 Date:11/20/2014 12:10 Pages:5 Resolution: 200x200 DPI 1 fit E. CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM � FINAL STATEMENT OF RETIREMENT BENEFITS November 3, 2014 Participant's tame: JAIME L MACALPINE Social Security 4: 558 - 57 - xxxx You are eligible for a(n) VESTED Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing July 1, 2.024 The amount of your monthly benefit depends on the optional form of annuity whicl you choose. Please indicate the one optional form listed below which you elect to recieve: 1. MODIFIED CASH REFUND ANNUITY:This option provides monthly pay- ments of $ 1999.79 to you as long as you live. If you should die before you have received an amount equal to your own contributions to the Plan, payments will continue to your beneficiary until your own contributions have been used up. • 2. TEN YEAR CERTAIN AND LIFE THEREAFTER: This option provides monthly payments of ; 1981,17 to you as long!as you live. If you should die before 120 monthly payments have been made, the monthly payment of $ 1981.17 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all.. 71W3. ''13. 100% SURVIVOR ANNUITY: This option provides monthly payments of $ 1907.87 to you as long as you live. Your beneficiary, if living at . the time of your death, will receive monthly payments of 1907.87 for as long as he /she lives. 4. 66% SURVIVOR ANNUITY: This option provides monthly payments of $ 1937.58 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 1291,78 for as long as he /she lives. • 5. 50% SURVIVOR ANNUITY: This option provides monthly payments • of $ 1952.84 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of 976.42 for as long as he /she lives. 6. 75% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of 202.0.20 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of y 1515.15 will continue for the life of the remain- ing person. • 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of 2146.60 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of Y 1073_.30 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: Pension Hire Date: 06/14/2004 Date of. Termination: 10/05/2014 Adjusted Hire Date: 06/14/2004 Avg Final Monthly Comp: $6,406.49 Years,of Credited Service: 10 Beneticiary Name: CHRIS MACALPINE Date of Birth: 04/03/1968 • 1 Page 2 Participant's Marne: JAIME 1,. MACALPINE Social. Security #: 558- 57 -xxxx Accumulated Contributions: $76,053.42 After - Tax Contributions: $.00 Pre - Tax Contributions: $76,053.42 Nontaxable Portion of Life Number of Months Nontaxable Annuity Monthly Benefit: $.00 Portion Continues: 0 Nontaxable Portion of Join Number of Months Nontaxable Survivor Monthly Benefit: $.00 Portion Continues: 0 The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated, BOARD OF TRUSTEES: By T....... DATE: I accept the terms above, including my choice of annuity forts, and confirm the information shown above to be correct. V PARTICIPANT'S SIGNATURE: - r. Y r • . �L — • DATE: V / - 1 - ff / )(BENEFICIARY`S SIGNATURE: r�_- -- — DATE: / Calculation Date: • • CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 1 November 3, 2014 NAME MACALPINE, JAIME L # 3064 SSN 558-57-xxxx DEPT 22 ADDRESS CONTR(NTX) .00 PEN HIRE 06/14/2C04 BALANCE 76,053.42 ADJ HIRE 06/14/2004 RETIRE 10/05/2014 TYPE V LAST SERV 1C/05/2014 36 MO EARN 230,633.73 ELIG NORM 06/14/2024 AVG MO ERN 6,406.49 ELIG EARLY 00 /00 /0000 SERV AT TERM 10 3 21 100% VEST 06/14/2014 AGE AT RETIRE 35 5 8 COMMENCE 07/01/2024 COIANB /DIFF 45 11 LAST EARN 00 /00 /0000 VESTED TDY /RET 100 100 BEN NAME PAY HIST FLAG IRREGULAR VAC HRS /CD .00 /N4 HOURLY RATE 28.473 SIC HRS /CD .00 F1 VAC SIC PAYOUT 2,216.10 ACCRUE PER .00 EARLY OPTION DEFERRED LAST PAY 20141006 - 20141019 TERM -DATE 20141005 QDRO BENEFIT 1,981.17 EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT .00 TEN YEAR CERTAIN & LIFE 1,981.17 LIFE ANNUITY FACTOR: 1.00940 MODIFIED LIFE ANNUITY 1,999.79 100% SURV. FACTOR: .96300 100% SURV. ANNUITY 1,907.87 SURVIVOR BENEFIT 1,907.87 66 2/3% SURV. FACTOR: .97800 66 2/3% SURV. ANNUITY 1,937.58 SURVIVOR ENEFIT 1,291.78 50% SURV. FACTOR: .98570 50% SURV. ANNUITY 1,952.84 SURVIVOR BENEFIT 976.42 75% JOINT LAST FACTOR: 1.01970 75% BINT & LAST ANNUITY 2,020.20 SURVIVOR BENEFIT 1,515.15 50% JOINT LAST FACTOR: 1.08350 50% JOINT & LAST ANNUITY 2,146.60 SURVIVOR BENEFIT 1,073.30 EXCLUSION RATIO USING SAFE HARBOR METHOD: ANNUITY JOINT SRV NUMBER OF EXPECTED PAYMENTS 0 0 TAX -FREE PORTION OF MONTHLY BENEFIT .00 .00 DATE WHEN BENEFIT BECOMES FULLY TAXABLE 00 /00 /0000 00 /00 /000 Prepared by * indicates manual override CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 2 November 3, 204 JAIME L MACALPINE H I G H Y E A R O N E H I G H Y E A R T W O PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 09/22/14 2.0 5,227.18 09/23/13 2.0 2,664.3 09/08/14 2.0 2,953.46 09/09/13 2.0 2,884.33 08/25/14 2.0 3,(75.14 08/26/13 2.0 2,950.29 08/11/14 2.0 2,953.46 08/12/13 2.0 2774.60 07/28/14 2.0 2,733.46 07/29/13 2.0 2,554.60 07/14/14 2.0 2,733.46 07/15/13 2.0 3,512.57 06/30/14 2.0 3,295.14 07/01/13 2.0 3,093.92 06/16/14 2.0 2,733.46 06/17/13 2.0 2,564.58 06/02/14 2.0 2,953.46 06/03/13 2.0 2,774.60 . 05/19/14 2.0 3,075.14 05/20/13 2. 2,873.92 05/05/14 2.0 2,953.46 05/06/13 2.0 2,774.60 04/21/14 2.0 2,733.46 04/22/13 2.0 2,554.60 04/07/14 2.0 2,974.82 04/08/13 2.0 3,732.57 03/24/14 2.0 2,733.46 03/25/13 2.0 2,554.60 03/10/14 2.0 2,953.46 03/11/13 2.0 2,774.60 02/24/14 2.0 2,733.46 02/2./13 2.0 2,554.60 02/10/14 2.0 3,295.14 02/11/13 2.0 2,873.92 01/27/14 2.0 2,733.46 01/28/13 2.0 2,774.60 . 01/13/14 2.0 3,337.85 01/14/13 2.0 2,873.92 12/30/13 2.0 3,096.50 12/31/12 2.0 3,153.80 12/16/13 2.0 3,416.82 12/17/12 2.0 3,193.24 12/02/13 2.0 2,95:.46 12/03/12 2.0 2,774.60 11/18/13 2.0 3,416.82 11/19/12 2.0 3,13.24 11/04/13 2.0 3,295.14 11/05/12 2.0 3,093.92 10/21/13 2.0 2,819.87 10/22/12 2.0 2,554.60 10/07/13 2.0 2,884.33 10/08/12 2.0 2,774.60 TOTAL 52.0 80,064.87 TOTAL 52.0 74,853.75 CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMNT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 3 November 3, 2014 JAIME L MACALPINE H I G H YEAR T H R E E PAY EFF WEEKS WAGES 03/15/10 2.0 2,506.60 03/01/10 2.0 2,726.60 02/15/10 2.0 2,819.92 02/01/10 2.0 2,726.0 01/18/10 2.0 2,937.42 01/04/10 2.0 2,726.60 12/21/09 2.0 4446.56 12/07/09 2.0 2,726.60 11/23/09 2.0 3,133.24 11/09/09 2.0 3,039.92 10/26/09 2.0 2,506.60 10/12/09 2.0 2,726.60 09/28/09 2.0 2,506.60 09/14/09 2.0 3,446.57 08/31/09 2.0 3,039.92 08/17/09 2.0 2,506.60 08/03/09 2.0 2,726.60 07/20/09 2.0 2,506.60 07/06/09 2.0 2,804.98 06/22/09 2.0 4,103.15 06/08/09 2.0 2,622.10 05/25/09 2.0 2,702.36 05/11/09 2.0 2,622.10 04/27/09 2.0 3,302.89 04/13/09 2.0 2,552.23 03/30/09 2.0 3,5.22.89 03/16/09 .6 726.26 TOTAL 52.6 75,715.11 Barbara Ladue From: Brandon C. Cole [Brandon_C_Cole @ajg.com] 20 Sent: Wednesday, January 28, 15 9:45 AM To: Barbara Ladue Subject: Re: Fiduciary Liability Insurance - Boynton Beach Police Pension Fund & Boynton Beach Fire Pension Fund We can start with last years reports. Do you have the applications from last year? We could start there and update the quotes as you get more information Brandon Cole CPCU, CRM Area Vice President Arthur J. Gallagher & Co. o 949.349.9871 1 m 720.951.5302 On Jan 28, 2015, at 6:41 AM, Barbara Ladue <ladueb@bbpdpension.com> wrote: Brandon: No, I have not completed any renewal applications. The actuarial report and the audited financial statements for PYE 9 -30 -2014 will not be completed until mid March. The actuary and auditors are having to comply with new reporting standards that have delayed these reports. Would reports for previous year give a start for quotes? Thanks. Barb La Due From: Brandon C. Cole [mailto:Brandon C Cole(aaiq.com1 Sent: Wednesday, January 28, 2015 9:30 AM To: Barbara Ladue; James Martinez Subject: Re: Fiduciary Liability Insurance - Boynton Beach Police Pension Fund & Boynton Beach Fire Pension Fund Barbara, thank you for the email. It would be our pleasure to get you a quote through our program. Have you completed applications for your renewal yet? We would either need to get those or have you complete our application. Also, we would need the most recent audited financials and actuary report for each plan. Thank you! Brandon Cole CPCU, CRM Area Vice President o 949.349.9871 1 m 720.951.5302 Arthur) Gallagher Risk Management Services, Inc On Jan 28, 2015, at 6:26 AM, Barbara Ladue <ladueb @bbpdpension.com> wrote: Brandon Cole: The Pension Board for the Boynton Beach Police Pension Fund and the Pension Board for the Boynton Beach Fire Pension Fund gave their approvals to seek a quote when our liability insurance comes up for renewal. 1 Each Fund currently has coverage with U.S. Specialty Insurance Company, Houston, Texas that will be up for renewal April 10, 2015. This coverage also includes myself as Pension Administrator for each Fund. The Fire Fund has $1,000,000 Limit of Liability with $15,000 Deductible, with premium of $9,184. The market value of the Fire Fund is $78,104,037 as of PYE 9 -30 -2014. The Police Fund has $2,000,000 Limit of Liability and $25,000 Deductible and premium of $19,098 with market value for PYE 9 -30 -2014 of $76,153,463. We are of course looking for control of these costs. Thanks for your review. Barbara La Due Pension Administrator 1500 Gateway Blvd., Suite # 220 Boynton Beach, FL 33426 561 - 739 -7972 Iadueb@bbpdpension.com 2 Barbara Ladue From: Barbara Ladue [ladueb @bbpdpension.com] Sent: Wednesday, January 28, 2015 9:27 AM To: ' brandon c cole @ajg.com' Subject: Fiduciary Liability Insurance - Boynton Beach Police Pension Fund & Boynton Beach Fire Pension Fund Brandon Cole: The Pension Board for the Boynton Beach Police Pension Fund and the Pension Board for the Boynton Beach Fire Pension Fund gave their approvals to seek a quote when our liability insurance comes up for renewal. Each Fund currently has coverage with U.S. Specialty Insurance Company, Houston, Texas that will be up for renewal April 10, 2015. This coverage also includes myself as Pension Administrator for each Fund. The Fire Fund has $1,000,000 Limit of Liability with $15,000 Deductible, with premium of $9,184. The market value of the Fire Fund is $78,104,037 as of PYE 9 -30 -2014. The Police Fund has $2,000,000 Limit of Liability and $25,000 Deductible and premium of $19,098 with market value for PYE 9 -30 -2014 of $76,153,463. We are of course looking for control of these costs. Thanks for your review. Barbara La Due Pension Administrator 1500 Gateway Blvd., Suite # 220 Boynton Beach, FL 33426 561 - 739 -7972 ladueb @bbpdpension.com 1 CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 1 REPORTING PERIOD 1 0/01/2014 TO 02/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr RETIREMENT 5297 ALLEN,EDWARD 08/ 1930 02/01/94 3 -A 9,682.07 48,410.35 ) CITY OF BO YNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 2 REPORTING PERIOD 10/01/2014 TO 02/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Receiv ed Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pensio n This Yr 3063 KIGHT,LUDDY 01/1942 01/01/98 -B 3,118.1 2 15,590.60 CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 3 REPORTING PERIOD 10/01/2014 TO 02/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 6451 SEIDER,GREGG 04/1956 05/01/06 02/1952 3 -D 3,145.81 15,729.05 6344 WOZNICK,MARK 09/1951 07/01/04 00 /0000 2 4,697.97 23,489.85 Total Retirement 1,568,482.43 DISABILITY 0849 WANDELL,ERIC 06/1965 11/01/07 LOD ROSEANNE WANDELL 09/1972 3 -A 3,413.60 17,068.00 Disability 1 7,068.00 BENEFICIARY 7853 DUFFY,CAROLYN 04/1942 4 -A 1,307.88 6,539.40 7944 KINBACHER,LINDA 03/1949 3 -A 3,227.98 16,139.90 7680 KNUTH,GLADYS 07/1937 3 -A 1,209.79 6,048.95 9568 EUTIN,ARLEEN 09/1963 1 2,494.55 12,472.75 8640 MANNING,ALICE 07/1928 3 -A 1,345.18 6,725.90 9653 RICHARDSON,MARTHA 06/1941 3 -D 1,908.78 9,543.90 2829 SISKO,ANNA 01/ 1941 3 -A 2,434.05 12,170.25 9298 WOJCIECHOWSKI, CECIL 02/1960 3 -A 4,810.33 24,051.65 Death 93,692.70 NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 81 TOTAL PENSION PAYMENTS 1,679,243. 13