Loading...
Agenda 08-05-15 BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING WEDNESDAY, August 5, 2015 (ai 9:OOAM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 AGENDA I. CALL TO ORDER — Luke Henderson, Chairman II. AGENDA APPROVAL - III. APPROVAL OF MINUTES — Quarterly Meeting 02 -25 -2015 Quarterly Meeting 05 -06 -2015 IV. FINANCIAL REPORTS: A) Bogdahn Consulting — Dave West, Consultant 1) Investment Performance Review for Quarter June 30, 2015 B) Gabriel, Roeder, Smith & Co — Pete Strong, Actuary 1) Letter of 7 -8 -2015 by Mayor Taylor for the City to engage GRS for various pension projections. 2) New Compliance & Reporting - Revised Chapter 112.664 dated 6 -26 -2015 3) Required Reports/Disclosures for City WebSite 4) Discussion on Mortality Tables —RP 2014 with various State orders, etc 5) Extra Payments for Unfunded Liability dated 7 -2 -2015 C) Attorney Report — Adam Levinson 1) Reminder Pending State Deadlines dated 7 -8 -2015 also additional requirements: a) Detailed Accounting Report for SPD b) Administrative Expense Budget with administrative expenses for years 2011, 2012, 2013 and 2014 for reference 2) Intercontinental — Seventeenth Amendment dated 7 -1 -2015 3) DROP loan provision — memo of 7 -2 -2015 by interested DROP participant. V. CORRESPONDENCE — 1) Tim Conway — New Head of Convergex Recapture Services VI. OLD BUSINESS — 1) Fact Sheet to counter misinformation on Pension Funding — Dave West & Pete Strong — Update 2) Debra Dypold — Restart benefit payments 8 -1 -15 — lump sum retro benefits since Nov 2013. 1 VII. NEW BUSINESS: A. Invoices for review and approval: 1. Schroder Fixed Income Mgt — Qtry fee 09 -30 -2015 - $ 2. DSM Capital Partners LLC — Qtry fee 09 -30 -2015 - $23,315.41 3. Bogdahn Group — Qtry fee 06 -30 -2015 - $8,375 4. Klausner, Kaufman, Jensen & Levinson — Service Jun 2015 - $2,880 5. Anchor Capital Advisors — Quarterly fee — 06 -30 -2015 - $ 6. GRS - Service June 2015 - $4,680 7. Alerus — Qtry DROP Admin Fee - $500 8. Salem Trust Custodial Fee 6 -30 -15 - $8,126.17 charged to account. 9. Intercontinental - Management Quarterly fee 12 -31 -2014 - $8,616.81 withheld from dividend reinvestment plan. 10. ASB Real Estate Fund — Quarterly Fee 6 - 30 - 2015 withheld - $8,271.74 VIII. PENSION ADMINISTRATOR'S REPORT: 1. Benefits as of 08 -01 -2015. 2. Schedule of 2016 Quarterly Board Meetings IX. PUBLIC COMMENTS: X. ADJOURNMENT: Next Meeting Date — WEDNESDAY, November 4th, 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. 286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE (561) 742 -6060 AT LEAST TWENTY -FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST. THE BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. BOARD MEMBERS MAY NOT PARTICIPATE FURTHER EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY. 2 MINUTES OF THE BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING HELD ON WEDNESDAY, FEBRUARY 25, 2015, AT 9:00 A.M. AT RENAISSANCE COMMONS EXECUTIVE SUITES, CONFERENCE ROOM 1, 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH, FLORIDA PRESENT: Luke Henderson, Chair Barbara LaDue, Pension Administrator Jonathan Raybuck Adam Levinson, Board Counsel Matthew Petty BobTaylor ABSENT: Helen "Ginger" Bush I. CALL TO ORDER — Luke Henderson, Chairman Chair Henderson called the meeting to order at 9:03 a.m. II. AGENDA APPROVAL - Revised Agenda was distributed. Motion Mr. Taylor moved to approve the agenda. Mr. Raybuck seconded the motion that unanimously passed. III. APPROVAL OF MINUTES — Quarterly meeting November 5, 2014 Motion Mr. Taylor moved to approve the minutes. Mr. Raybuck seconded the motion that unanimously passed. IV. FINANCIAL REPORTS: B). Bogdahn Consulting — Mr. West, Consultant (Heard out of Order) 1) Change of I nternal Control Dave West, Bogdahn Consulting, announced they issued a memo advising of a Change of .Internal Control the second week in January. Of the three owners of the Bogdahn Consulting Group, Joe Bogdahn tendered his shares in the company to Mike Welker who would be the managing owner of the company. This was done to effect an early sunsetting for Mr. Bogdahn who wanted more family time. Bogdahn Consulting Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 Mr. West advised there were three dramatic events that impacted the market and investments. One was a decline in interest rates, big currency shifts in the market and more recently, Janet Yelin's testimony in Congress. All Federal Reserve actions were put on hold for two Federal Reserve meetings. The fund, net of fees for the quarter, was up 3.02 %. Fiscal year -to -date, the fund was up 3.02 %. The total fund policy was 2.38 %, gaining a small return for the quarter. The three -year annualized return was 12.5 %, slightly ahead of the policy. The five -year annualized return was 9.5 %, slightly behind the policy. Grossed, the three -year retum was slightly under 13% and ranked in the 26th percentile. For the five -year period, the fund ranked in the 42nd percentile. There were some performance deficits which were addressed that resulted in the fund declining half a percent. This placed the fund lower in the peer group rankings; however, the fund was trending favorably. The all cap value equity, run by Anchor Capital, was slightly under for the quarter and close to the benchmark at 4.43 %. The S &P 500 Index was in -line with the market at 4.97 %. The Vanguard Mid Cap Index was up 6.5 %. DSM, the large cap growth manager, had a good quarter and was up 8.3% versus 4.7 %. Manning and Napier was down 4.7% versus 3.8% in international equities. A review of domestic fixed income reflected STW, the fund's domestic grade bond manager, was up 1.3 %, slightly above the benchmark. Their peer group ranking was 25% for the three -year period, and in the top 40% for the five -year period. The fund has an allocation to Treasury Inflated Protection Securities (TIPS) which they were minimizing. The TIPS were down 1.2% and Mr. West clarified the bond portfolio in place was not an aggregate bond portfolio. It was an intermediate bond portfolio with maturity ranges of one to 10 years to eliminate the price volatility that occurs with changes in interest rates. It was well positioned in case interest rates go up, while capturing the coupon and yield available in the aggregate markets. The fund was diversified in global bond strategies. The PIMCO Diversified Income Fund was adversely affected by currency this quarter and was down 1.48% versus the global bond benchmark which was up 1%. The Templeton Global Bond Fund, was adversely affected because of depreciation in the yen and Korean currency and was under the benchmark. The long -term results for these two managers were good and had peer group rankings in the top 8 %. Real estate investments showed Intercontinental was at 4.87 %. The one -year return was 13.58 %. For the three -year period, the return was 15% and this investment positively impacted investment returns. The same held true for ASB. The Trustees saw opportunities in middle- market debt actively managed by LBC Credit Partners and Crescent Direct Lending. LBC Credit Partners was up 1.5 %, 2% for the quarter, and since inception was 4.66 %. Crescent Direct Lending just had a capital call 3 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 down capitalizations. They would invest in emerging markets to some degree, but mostly developed markets. The firm obtains single and double -digit returns. They have been able to lower the volatility and provide an incremental return. Those benefits together, assuming there was reasonable predictability if indexed, would be 20 basis points. If investing in the R -6 share class, they would pay 19 extra basis points, and receive a risk adjusted return in active management. He thought it was a worthwhile investment. WCM had higher fees at 1.08 %, which was the lowest cost share class available for that fund. The manager was more growth oriented. It was a concentrated manager strategy, and it owns 25 stocks. Mr. West recommended if the Trustees want exposure and surety, the Euro Pacific Fund was cost effective. If the Trustees want continuance of a good track record, but take a concentrated equity manager approach, they may have to weather performance cycles. Historically, the returns were great, and risk management through their stock selection was phenomenal. Objectively and statistically, a concentrated manager takes a higher risk approach than a well- diversified manager, but one had to be careful not to take away any value adds. Attorney Levinson inquired if they could split the allocation and if the managers were complimentary to one another. Mr. West responded they could split the allocation. The strategies between the two managers were highly contrasted. After discussion, the members opted to split the allocation. Motion Mr. Raybuck moved to terminate Manning and Napier. Mr. Taylor seconded the motion that unanimously passed. Motion Mr. Raybuck moved to retain WCM and Euro Pacific Fund as the fund's designated international equity managers and allocate a pro -rata share at 50% each. Messrs. Taylor and Petty seconded the motion that unanimously passed. It was noted they could adjust the allocations if needed. 3) PIMCO — Update on changes Mr. West explained they had a conference call with one of six new Chief Investment Officers (C10) of PIMCO. This CIO was the lead portfolio manager of the PIMCO Diversified Income fund, which the Plan was invested in. Bogdahn has been tracking the firm and put them on watch. They have been observing personnel changes and the money flows, which leveled out and there was a slowdown. Mr. West had no recommendations regarding PIMCO and it was likely they would be removed from the watch list the second quarter. Attorney Levinson suggested discussing Salem after the GRS presentation. 5 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 money managers who bill in arrears for the value of the September 30 portfolio. As the total investments and market value increase, the fees increase as well. The total assets this year were $78 million, Tess total liabilities of $250,000, giving a net position fund balance of $78,279,000. Mr. Cristini explained how the Plan obtained the increase in net position. He commented the employer contribution was slightly down. Plan members increased, member buy backs increased, and there was a slight increase in roll overs to DROP. Total contributions increased from $4.9 million to $5.1 million and were basically flat. Attorney Levinson noted member contributions increased and the City contribution went down. He inquired if total payroll increased. Mr. Cristini clarified there were three new members. Investment income loss reflected net appreciation and depreciation. The amount of market value and excess cost grew, which was an unrealized appreciation. Interest dividends were flat. Commission recapture was slightly down. Class action settlements increased. Total investment income was $8.5 million versus $7.4 million. Net investment income decreased from $8.2 million to $7.1 million. Total additions increased. Deductions and age in service was about the same. Disability decreased slightly and beneficiaries and DROP payments decreased. Mr. Cristini clarified the DROP payments were actual cash disbursements. Refunds remained unchanged and administrative expenses increased. The net increase in the net position was $9.4 million in 2013 and $8.8 million in 2014. Mr. Cristini clarified pages 12 and 13 of the report describes GASB 67 and 68. When there are changes in accounting reporting, they have to tell the reader what they are. He pointed out GASB 67 required new notes. The old Schedule of Funding Progress was replaced and under Required Supplemental Information. Investment asset allocation policies were from the Investment Policy Statement the Board adopted, which dictated how the money is allocated. The rate of return was not a new disclosure, but this year's rate of return had to be added to the footnotes. It was what the Board anticipated the return rate would be each year in the future. There was $3.6 million of unrealized appreciation and $4.2 million unrealized in the prior year. Mr. Cristini commented the numbers were good. At the end of year of cost versus market, there was a market excess. Mr. Cristini explained the DROP accounts were not a liability. It was an identification of dedicated funds and they were tracked properly. It is fully funded and accounted for each DROP member separately. The total net position was $78 million. 7 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 the transition, they did not adopt or adapt policies and procedures before the auditor arrived and they were cited. The other issue, outside the SSAE report, was a bank and trust issue. Salem's parent company was defrauded. Attorney Levinson clarified the custodian houses the securities. Eve n if the p arent company of our custodial bank has difficulties, it should not affect the Board's underlying assets which are held in trust. Mr. Cristini explained complimentary user controls are followed. The Board follows the goveming documents in the Trust agreement and this was more of an ERISA issue which the Board was not subject to. The real issue was there were issues with the audit standards and they let the Board know of the concerns. The resulting report from the Custodian indicated they were addressing them. The basic procedures for audit do not require looking at the SSAE Report because the Board has its own internal policies and controls. As to financial solvency, Salem would not disclose any information and it was recommended Salem be contacted and invited to the next meeting to discuss what was occurring. Attorney received full cooperation from the City, actuary, asked if the auditors eceived ull coo erat o rom y, Y p ry , Ms. LaDue or if there was anything else the Board needed to know. Mr. Cristini responded all was in line with the findings. Cooperation was superb starting with Ms. LaDue all the way down the line. GRS was fine and there were no issues to cause an audit issue. Ms. Bittinger explained the City spoke about testing and they found some errors, but nothing significant. She commented the City's Finance Department does an excellent job. Motion Mr. Taylor moved to accept the report as submitted. Mr. Raybuck seconded the motion that unanimously passed. 2) Audit Renewal contract — The auditors had sent a letter in October in reference to GASB 67 requiring them to spend more time compiling the report. Ms. Bittinger explained this was a one -time cost. Besides their normal engagement letter, they were requesting $3,000 to cover the cost of including the new requirements. Motion Mr. Taylor moved to approve. Mr. Petty seconded the motion that unanimously passed. Attorney Levinson pointed out the auditors did the work ahead of time so it did not hold up the City and other auditors were charging a lot more. 9 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 GRS projected by 2016, it would decrease to 2.5% or 3 %, which would increase the payment on the unfunded liability. The lower the payroll growth assumption, the higher the payment on the unfunded accrued liability. Mr. Taylor inquired how they project payroll increases or decreases four years out. Chair Henderson explained when the Union signs a contract, the contract pay scales, including COLA increases, are sent to GRS. Ms. Algayer explained if the average payroll declines continue to trail the 10 -year average, they would pay as a level dollar amount. If the unfunded liability were amortized as a level dollar amount, the employer contribution would have increased by more than $1.1 million. Attorney Levinson clarified this had to do with the payment schedule and not the underlying liability. Ms. Algayer added they were paying down the unfunded liability. When paying as a level percentage of pay, they are paying less in earlier, more in later, and they would pay more in interest. When paying as a level dollar amount, because they are paying more sooner and they are realizing returns, they are putting less in. The 4% considers individual salary scale assumptions, departures and new hires. If employees receive more than 4% raises, the trend will be changed. It was noted they were anticipating attrition of high end firefighters replaced by lower paid employees. They would amortize as a level dollar amount. By lowering the assumed rate of return to 7.5 %, the ARC increased about $150,000. and the Board opted to wait to adopt the new mortality tables. Ms. Algayer explained they currently use the 1983 Group Annuity Table, which was outdated. It did not contemplate longer life expectancies. In 2014, the Society of Actuaries carne out with the new RP 2014 Table which was a two dimensional table. Chair Henderson inquired if GRS could insert the mortality table into the Plan if the Board adopted it over a five - year period, and project what the City's ARC would be, assuming all other assumptions were met. Ms. Algayer responded she could. Ms. Algayer explained they recommended for the Firefighters' Plan using the RP 2014 Table with the newest mortality improvements to make a generational table and have a 50% Blue Collar Adjustment because it is a public safety plan. It would not recognize 100% Blue Collar. It would be more conservative. It was noted the Board considered the RP 2000 Generational Table which was similar to proposed bill SB 242, which if adopted, would require all municipal plans in Florida to fund their plans on the same mortality basis as FRS. She explained FRS has variations and uses different mortality tables. It would be more conservative if they used the 2014 table than the FRS tables. If the Board was interested in using the RP 2000 Table, GRS recommended using Scale BB because it was an interim table while the RP 2014 Table was being created. Chair Henderson requested a motion for GRS to run a side by side table if they adopt the RP 2000 or the RP 2014 /Blue Collar Tables. Ms. Algayer recommended waiting because there would be a cost associated with the comparisons and the table may not be adopted. Ms. Algayer pointed out GRS expected, if they used the RP 2014 Table with 50% Blue Collar adjustments with a level dollar amortization, the contribution would 11 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 Chair Henderson noted three years ago, they had removed the rate earned by a self - directed account utilizing mutual funds selected by the Board from the Deferred Retirement Option Plan regarding interest credited. It was included in the report, and this change would be reflected in next year's report. He inquired if there was a page in the report that showed if there was a cost to the COLA increases. Ms. Algayer responded the unfunded approved liability payment schedule showed the components that constitute unfunded liability. At the August meeting, the Trustees will discuss mortality tables and cost neutrality verification for the City regarding the COLA. Chair Henderson would request it from GRS since it was needed to calculate the ad hoc benefit. The members congratulated Ms. Algayer on the report. The members discussed GASB 67 and Ms. Algayer advised GRS sent a letter on January 9, 2015, on the new standards. This was just for reporting purposes. For the fiscal year ending 2014, they had to calculate the total pension liability, plan fiduciary net position and the difference between the two is the net pension liability which is similar to the unfunded accrued liability. This would change the funded ratio. The GASB standards permit the Plan to use the October 1, 2013, data for the liability calculations and roll it forward to September 30, 2014 and treat it as a liability on September 30, 2014. For the Plan, the total pension liability was $116 million. The plan fiduciary net position was market value of the assets. The difference between the $116 million and the $78 million was $37.7 million, which was the unfunded accrued liability, but in accounting terms, it is called the net pension liability. The 67.7% was how much of the total pension liability was covered by the market value of assets. For each dollar of accrued liability, the Plan had 67 cents. Motion Mr. Raybuck moved to approve the valuation report for the year ending 2014. Mr. Petty seconded the motion that unanimously passed. This will be distributed to the Finance Department, the State and Ms. LaDue. D) Attorney Report — Attorney Levinson Attorney Levinson distributed a spreadsheet which showed 30% out of 490 plans were using an 8% rate of return, 24% were using 7.5 %, and 37% were using a more aggressive number. The Plan was ahead of that trend, and the last chart shows 301 plans in Florida were between 7.9% and 7 %. The Boynton Plan was in the middle. Attorney Levinson had been corresponding with Tallahassee about Senate Bill 534 and distributed a copy of their email. He advised there was much ambiguity regarding when they implement the SB 534 reporting, and GRS would have to submit the report 60 days after the regulations are finalized. The City would have to post the SB 534 report which will not cast any plan in a favorable light because they have to show 200 basis points higher and lower. The contributions and investment earnings could not be included. He 13 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 This was finalized. At the last meeting they signed with two new real estate money managers. 2) Fishing Tournament/Chili Cook -Off — Saturday, April 11, 2015 Chair Henderson announced the event. 4) "Why Pension Reform is Inevitable" by Commissioner Mike Fitzpatrick Commissioner Fitzpatrick had questions about the pension plans which were reviewed by Tim Howard, Finance Director, and provided to Ms. Algayer. Commissioner Fitzpatrick did not see a mission statement and inquired if there were stated goals. The goals were to provide a level amount of contribution to the City so they know what the cost of the Plan is. Over time, the Board would adjust their methods and assumptions based on what was reasonable and appropriate, based on consultation with the experts. Attorney Levinson explained a lot of work went into the Investment Policy Statement (IPS) which was like a mission statement. It detailed how the different asset classes work together and how the portfolio was designed. Mr. Raybuck advised Chapter 175.071 and Chapter 112.656 also contained provisions for the Board to operate under. Commissioner Fitzpatrick inquired if there were any plans that keep the Chapter 175 monies. Ms, Algayer explained the only way to continue receiving those funds was to not cut benefits below the minimum levels. As long as the Plan remained open to new hires, the Plan would continue to receive the monies. The Plan could have a defined contribution (DC) feature, such as a Share plan. Attorney Levinson clarified, in addition to the current defined benefit plan, members could add a DC plan so long as the DB plan provided minimum benefits. Commissioner Fitzpatrick commented he had a conversation with the former City Manager from the Town of Palm Beach and he was advised the Town gave up the 175 funds because they only received a certain amount, and they could save a lot of money if it was eliminated. They had a hybrid plan and there was still a 2% defined benefit. He inquired if they could have kept the 175 monies. Ms. Algayer explained there were other requirements for the minimum benefits. He inquired if they kept a 2% DB plan, if something could be crafted to hold onto the Chapter 175 monies and Ms. Algayer responded they could as long as they complied with the minimum benefit. They would have to ensure the cost of the minimum benefits, under the new interpretations and the Naples letter, was greater than the cost of the annual premium tax revenue, defined as what the State was currently contributing, over and above the 1998 amount of about $680,000. Senate Bill 171, the Bradley Bill, put limitations on the ability to do what Palm Beach did. To Attorney Levinson's knowledge, Palm Beach was the only City he was aware of that refused to accept the 175 funds. The Palm Beach hybrid plan did not meet the State minimums. They lobbied the Legislature to get their money back and lost 50% of their employees. Attorney Levinson explained there are 491 governmental defined benefit 15 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 assumptions were met and funding was at 100 %. GRS has to continue to make the assumptions each year. The hope was, in time the gains and losses offset each other. If not, they do an experience study. Attorney Levinson pointed out with DC plans, there was no disability component, which the Boynton Plan has. With DC plans, if a member with two kids, a $900 health insurance and mortgage payment died, his survivor benefit would only be the payout value of his accruals. With a 401K plan, it is unmanaged money. They put it in a mutual fund and do not manage it. The average DC plan lost 50 %, but the DB plans lost 17 %. With DC plans, individual investors act emotionally. With DB plans, they follow the investment policy advice. Commissioner Fitzpatrick asked if there were any DC plans that were not 401 Ks. He referenced the Town of Palm Beach. Ms. Algayer responded one does not have to use a 401 K. It could be any investment. There are options other than 401 K plans, but they operate the same way. It was not a plan, it was a savings account. Mr. West also noted there were specific IRS contribution limits. Commissioner Fitzpatrick asked if firefighters switch to a 401 K plan, why they could not have a pre -DROP account with this Board. He clarified if an employee was employed for five years, why an employee could not start an account that the DROP account would roll into. He questioned why extra money could not be contributed that would be managed by the Board. Ms. Algayer responded that was a cash balance plan. Attorney Levinson explained the City has a Deferred Compensation program employees could use. Employees can contribute up to $18,000 per year. Commissioner Fitzpatrick inquired why employees cannot have an account with this board. Chair Henderson explained the Trustees were not money managers. DROP funds are accounted for separately and are part of the asset pool. As for firefighters using their own expertise for investments that would roll into a DROP account, Chair Henderson did not think it was legal. Attorney Levinson explained the reasons the efficiencies of the DB plan with the investment expertise, the low cost and more cannot be applied to individual members in the 457 (Deferred Compensation) plans was because of the tax code. The 457 deferred compensation program details they cannot comingle those funds. Individuals could not move funds from 457 balances into the DROP plans until they separate from service. The Police plan allows that, but the rollover has to be in the investment earnings of the plan after they retire. They also do not earn 7 %, after they retire. Attorney Levinson clarified 457 plans have been trying to get FRS employees to roll their DROP funds into the 457 plans, but FRS would not permit it. The monies actually go from the DROPs into the 457. Commissioner Fitzpatrick inquired what percentage of contributions go to retired members. Ms. Algayer explained the unfunded liability was $44.5 million. The inactive member liability was $64 million. A good portion of the cost was being paid to retirees. 17 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 sustainable and there would be a change and the question was how the change would occur. He commented there is a downturn in the market every three to four years and eventually, cities will declare bankruptcy. He thought when things were improving, that was the time to make changes. The City needs flexibility to invest in the future, and this was the biggest area of growth in the budget that was unsustainable. Attorney Levinson explained Senate Bill 171 has more flexibility in the bill for the Unions and the City. One type of pension reform was achieved by lowering the investment assumption, which the Board completed over five years. The professionals on the Board, if given the authority, are happy to assist the Union and the City to provide some of that expertise as part of the process. There are some very longstanding Trustees. If, through negotiations with the City, they need to save money, the Board can help. Chair Henderson pointed out the Trustees never had a closed door with either the City or Union. if the City cuts a benefit, they have to know what it is worth and GRS could develop those amounts. Commissioner Fitzpatrick invited Tim Howard to come to the meeting and thought being proactive would be better. There were many items deferred. He thought they had to step up to the plate to change the course. It was a slow death spiral and the biggest portion of the budget was all three pension obligations. The last 1 cost more than what preceded it. Ms. Algayer explained the cost of the plans does not change. If there are set benefits, the benefits already earned cannot fluctuate. Commissioner Fitzpatrick explained this would be for future retirees. An employee could have 18 years in one plan and 2 years in a variable multiplier plan. Chair Henderson explained until they are given direction by the City or Union, they will continue to monitor the fund. All the terms of the plan have to be negotiated by the City. Commissioner Fitzpatrick advised what was occurring on the other side was not a good thing. The Town of Palm Beach collapsed all three plans into one. He agreed the more people were educated, the better. Commissioner Fitzpatrick advised the risk had to change. Mr. West explained they interpreted the numbers. He saw the big problem was the property taxes collected. City revenues decreased precipitously and the pension, by fault, even if the cost did not go up, would be a higher percentage because City revenues tanked. The pension was not the cause. It was the rapid decline in revenues. Commissioner Fitzpatrick disagreed with the pension cost, as a percent of budget. The budget increased from $40 million to $72 million, yet the pension costs went from 2% to 21 %. They should address City revenues to raise the revenues to the expected level of public safety service. Commissioner Fitzpatrick did not know if the City's contribution would be 21% of the budget and thought it should be 10 %. Mr. West commented the FRS has a rainy day fund. When there was excess, they still made the same contribution. In 2008, they drew it down, but did not have to make extra or additional contributions due to the reserve. Ultimately, the reserve was depleted, but the financial management practices of the State were prudent. Other cities with revenue declines, and in review of the funding status of the plans, did the same thing as FRS. Investments are cyclical. If City management had been practicing prudent funding, it 19 Meeting Minutes Firefighters' Pension Board Boynton Beach, Florida February 25, 2015 B) Updated GASB No 67 Disclosure Information by GRS 01 -09 -2015 This was previously discussed. C) Retirement Benefit Verification — Jaime MacAlpine There were no questions on this item. D) Fiduciary Liability Ins. NCPERS quote requested for April 2015 renewal. Chair Henderson explained Ms. LaDue was working through NCPERS for insurance for Trustees and was trying to obtain a discount. The premium was due April 10 but Ms. LaDue needed to get four quotes. They could renew for this year in April and any changes would be for the subsequent year. Last year, they paid $9,100 and it was based on assets. Attorney Levinson suggested implementing it for next year. Another option was to authorize the Chair to sign the lowest bid, in consultation with Attorney Levinson and Ms. LaDue to go with the lowest bidder. Motion Mr. Raybuck moved to authorize the Chair. Mr. Petty seconded the motion that unanimously passed. VIII. PENSION ADMINISTRATOR'S REPORT: 1. Benefits as of 02 -01 -2015. There were no comments on this item. IX. PUBLIC COMMENTS: None. X. ADJOURNMENT: Mr. Petty moved to adjourn. Mr. Raybuck seconded the motion that unanimously passed. The meeting was adjourned at 2:02 p.m. 0 _11ttuuund- • Catherine Cherry Minutes Specialist 040115 21 mss" fJ b t , ?rte MINUTES OF THE BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY BOARD MEETING HELD ON WEDNESDAY, MAY 6, 2015, AT 9 A.M. AT RENAISSANCE COMMONS EXECUTIVE SUITES, CONFERENCE ROOM 1, 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH, FLORIDA PRESENT: Luke Henderson, Chair Barbara LaDue, Pension Administrator Jonathan Raybuck Stuart Kaufman, Board Counsel Helen "Ginger" Bush Matthew Petty Bob Taylor I. CALL TO ORDER — Luke Henderson, Chairman Chair Henderson called the meeting to order at 9:09 a.m. II. AGENDA APPROVAL - Ms. LaDue announced Attorney Stuart Kaufman was present for Attorney Adam Levinson. She added the following items: IV. Financial Reports, C, Attorney Report, 3, SB 534 Implementation requirements. VII. New Business, A, Klausner, Kaufman, Jensen & Levinson, Service for April - $1,290. VII. New Business, Item B, Form 1, Financial Disclosure for the Trustees. Motion Mr. Petty moved to approve the updated agenda. The motion was duly seconded and unanimously passed. IV. FINANCIAL REPORTS: A) Salem Trust Company — Karen Russo, Sr VP & Regional Manager Mark Rhein, Sr Management 1) SSAE 16 Audit — Review and update (Heard out of Order) Karen Russo, Salem Trust, and Mark Rhein, Chief Operating Officer, Salem Trust Company, were present to discuss the SSAE 16 Audit report. MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 Mr. Rhein explained the first of two conversions occurred two years ago at Salem. The ACH conversion was flawless, fully transparent, with without incidence. There was one minor issue with one retiree's debit card. The second trust accounting conversion did not go so well. Statements were late and there were problems. In May, before they converted, they sent notices to all their investment managers with delivery instructions for trades and new account numbers. They were not sent to the brokers because they do not know which brokers are used. Three notices were sent and in the first few weeks, there were 3,000 failed trades sent to Salem. Salem fell behind because staff was trying to settle the trades, post the income and dividends and ensure the trades that were placed were credited to the correct client accounts. As part of the process, the employees in that Division did not keep the daily reports. The report covered that time period from June 1, 2013 through June 30, 2014. The report is a report on operating controls, not a report if they settle trades or collect income. The independent auditor requested the daily reports for that time period, and they did not have them, resulting in an unfavorable report. Mr. Rhein explained a review of the report would show that throughout the adverse opinion, it was related mainly to the absence of documentation. Salem Trust has taken this very seriously. They reviewed the items identified in the original report and mapped out all that had to be in place by May 31 They are using their independent auditor to provide advice and guidance so they would be aware of the policies and processes they put in place to address any deficiencies. The full set of documentation, controls, procedures, daily documentation and everything is ready for review at the end of the month and they are confident the auditors will find all in order. They plan to ensure the SSAE 16 Report (the "Report ") is produced and distributed to their clients prior to September 30 Mr. Rhein assured the Board the conditions that caused the original report no longer exist and there would not be adverse findings. Salem Trust had considered using an independent third party to review what was done since February and opted not to do so because they would have to hire someone other than the independent auditor, who was already investigating this, issue an RFP, identify other auditors who would come in, negotiate a fee, put them in place and let them examine what Salem Trust had done to date, and give an opinion on what was done. He advised what they were doing was a satisfactory substitute to using an independent third party review. The statements were delayed, and they started to get back on track in September 2013. The annual statements were received earlier than they had been in the past. Mr. Rhein was not aware of any material defect in their statements since January 2014. Salem Trust operates in Florida and parts of Georgia. The Trust component of Salem Trust supports other business enterprises as part of their holding company, U.S. Fiduciary Services, (USFS.) They have three separate units: Pennant Management, Salem Trust and Great Bank Trust, and each one has its own separate charter. Mr. Rhein commented they had lost about 15 clients. He clarified not each client that left 2 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 on their own initiative. As a business organization, di dsvo g , Salem Trust reviews the profitability of each client and if they are not covered for certain direct costs, in some instances, Salem Trust will not earning a profit at all. Part of the attrition was related to the fee increases they submitted to their clients that were not profitable. Of the 15 clients, 60% of them were not covering their direct costs and they were approached for a fee increase. Mr. Rhein explained they lost six clients since January, but it was due to the confluence of events including the Report. Salem Trust disclosed the Report to their clients and the Report is sent to the plan auditors to help them in their audit practices as a supplement to their auditing procedures. When it was sent to the auditor, it caused concern because of the adverse opinion. A series of correspondence and /or emails alerting their clients to the matter were sent about one week after; however, Salem clients had already learned of the situation prior to the correspondence being received. They were concerned Salem Trust did not get in front of the situation. The auditor insisted on getting the report as soon as possible, but it was sent without the proper explanations, and they did not expect the auditor to spread the word. As a consequence of the Report, once the original shock passed, about 10% of the clients decided they needed additional testing, but no adverse effects were found. Salem agreed to reimburse those clients reasonable expenses for the additional testing. Paying for the additional testing was consistent with Salem Trust. If there is a mistake, they own it and try to be as transparent as possible. Chair Henderson commented Ms. LaDue has been happy with the relationship and he has not heard any complaints from retirees. Dave West, Bogdahn Consulting, explained in order to give the matter final closure, they want to review the information when it is produced with the follow -up audit. This would ensure the issues were addressed. He respectfully commented, there has been a series of decisions made by senior management, and there were directional implementation issues. If it were not for the strong service providers Salem has, such as Ms. Russo, he thought many accounts would be gone. He pointed out those individuals make the experience positive for their clients. He was aware there was some turnover in Salem Trust, which could be a concern. Mr. Rhein agreed more turnovers would be problematic because their business model hinges on the type of interaction they have with their clients. He commented one senior person at the firm retired. Another relationship manager opted to move to another organization because of a career opportunity to learn about 401K and defined contribution plans. He reminded the members Salem Trust was exclusively involved with defined benefit plans. Mr. West wanted to speak about Pennant Management, a parent company of Salem Trust which is an investment entity that engaged in a "Repurchase Agreement." This agreement works to purchase a product and receive cash in return, but as part of the agreement, they would purchase the product back at some point in time, and return the 3 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 cash. This is done to provide liquidity to the secondary market, and is a standard technique. There are two types of securities, U.S. Department of Agriculture loans and Small Business Administration loans. The U.S.D.A is a bank and as part of their process, they vet individuals and approve them to be agents of theirs to identify lending opportunities for farmers, help underwrite the loan, send it to a third party for signature, and then the loan documents come back and the funds are disbursed. in the course of their investigation, it was discovered that one of the loan documents was missing a signature from an individual in Atlanta. They contacted him in Atlanta and he was unaware of the loan. They then investigated the loan papers and learned a few weeks later there was a $178 million fraud committed. Pennant Management was a victim of the fraud and it was their internal process that discovered a gap in the U.S.D.A.'s process. They pooled their resources and recovered $135 million, or 70% of the amount. Of the assets they identified and sold, they are in a recovery trust, supervised by a court- appointed individual. They approached the U.S.D.A. because their loans are 100% guaranteed, and asked for the funds and they responded they would not guarantee the loan in this instance. As a result, Pennant Management is pursuing legal action against them. Pennant Management was doing the work of the U.S.D.A., hiring attorneys and forensic accounts to identify more assets. The person involved in the fraud was Nick Patel, located in Orlando at First Farmers Financial. The assets Mr. Patel had were sold to satisfy the fraud. From a fiduciary standpoint, the Board's exposure was related to one of the 13 entities that were part of the fraud. There were no municipal pension plans involved in the investment, but there was one share plan that was defrauded $10,000. Mr. West confirmed the Board had no exposure, but should be aware of the issue and receive a fair explanation of the matter. Ms. Russo commented the FBI arrested Mr. Patel for fraud. Mr. Rhein explained they were striving to do the right thing and for those individuals who sustained a loss, they planned to cash them out as soon as possible, but it all hinged on the sale of the assets, such as hotel properties. Mr. West inquired how the government was handling the issue. Mr. Rhein responded they are in frequent contact with the District Attorney in Orlando and sharing their findings, while they pursue their actions, building a case against Mr. Patel. Other indictments were forthcoming. Salem Trust had used a certified statement from a CPA indicating Mr. Patel had $25 million in assets. The CPA sent a routine request to a bank requesting confirmation of the assets, and a bank employee, as part of the fraud, returned the statement indicating he did when he did not. Pennant Management is also pursuing recovery against the bank, which is a national enterprise. Mr. West advised from a documentation standpoint, the service Bogdahn Consulting and their clients had received from Salem has been top notch. He advised replacing a custodian was significant. He thought they should wait to receive confirmation and closure in June regarding the follow -up audit showing all of the items have been 4 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 adequately addressed. In the event there was not a favorable audit, there would be a serious problem. He advised the explanation was acceptable and they should take a wait and see stand. Ms. Russo commented if there were any further questions, the members should feel free to contact her. Mr. West noted Mr. Cristini, the Board's auditor, had also reviewed the matter. Ms. Bush expressed her concern about the matter. Attorney Kaufman advised he met with Bradley Rinsem, from Salem Trust, and another individual to discuss the Pennant Management matter. They had not mentioned the negative article, which they knew was coming out. He commented they had a close relationship with them for about 25 years, and Attorney Kaufman expressed Mr. Rinsem should have gotten in front of the issue and contacted his clients at the same time to alert them to the matter and initiate damage control. Once the matter was known, they contacted other attorneys in Florida about the matter. They were upset with the way the matter was handled and felt it should have been disclosed. Chair Henderson agreed and noted they had made a million dollar error on one of their statements. It was the Board that had requested the meeting, and it was thought the company should have initiated the meeting. All agreed Ms. Russo provided superior service. Attorney Kaufman pointed out clients that have issued RFPs have learned they were paying Salem Trust twice as much as they could pay someone else. He suggested the board review what they are paid on a yearly basis, and reviewing other firms that would charge far less, saving the Board a substantial amount of money. Ms. Bush went on record about the need to stay on top of the matter. III. APPROVAL OF MINUTES Chair Henderson noted the minutes were received the day lengthy before. It was a len Y meeting and there were 21 pages of minutes. He asked if there were any objections to postponing approval of the minutes to the next meeting, and there were none. IV. FINANCIAL REPORTS: B) Salem Trust Company — Karen Russo, Senior VP & Regional Manager Mark Rhein, Sr Management 2) SSAE 16 Audit — Review and update This item was previously addressed. B) Bogdahn Consulting — Dave West, Consultant 1) Investment Performance Review for Quarter March 31, 2015 5 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 Mr. West commented the big issue in the market that impacted the last two and current quarters was the Federal Reserve closed quantitative easing and announced they would start increasing interest rates. This indicates they are comfortable with the U.S. economy. In Europe, the Central Bank was implementing a major quantitative easing and was contributing $60 million per month in Euro government- backed securities. The German 10 -year bond yield was negative. All the money would follow the government with the stronger economy to earn higher interest rates and the U.S. dollar had significantly appreciated. As a result, they lost money in funds invested outside the U.S. just by the currency conversion and the European equity markets were very strong. Mr. West reviewed the developed country MSCI EAFA return was 5 %. The S &P 500 was up 1 %, and the mid and small -cap stocks were up 4 %. Mr. West noted it was good the fund had a real allocation to the S &P 400 Index Fund. They were significantly capturing the shift in equity markets. About half the companies composing the S &P 500 mega and large -cap companies obtain about 60% of their earnings from overseas. When converted back to U.S. dollars, the earnings were being discounted. The small and mid -cap stocks operating in the U.S. economy were not affected by this and were positively impacted. The bond market rallied and the Barclay's U.S. Aggregate was up 1.6 %, but annualized higher than the coupon. For the quarter, the fund earned 2.4% net of fees, slightly ahead of the benchmark. Fiscal year -to -date, the fund was at 5.4% ahead of the passive policy benchmark. Year - over -year, the fund earned 7.9 %. For the three -year period, the fund annualized at 10.3% and for the five -year period, was slightly under the benchmark at 9.24 %. The fund was on track to earn the actuarial rate of return. The fund ranked in the top 26 percentile of the public -fund universe. The fund at the one -year mark rated in the 31 percentile; for the three -year period, in the 29 percentile; and for the five -year period was in the 45 percentile. The asset allocations were a big driver of the returns and good peer -group rankings. A review of domestic equities showed Anchor all cap was flat versus the benchmark and value stocks underperformed. Fiscal year -to -date, Anchor performed even to the benchmark, and the one, three, and five -year returns were good. Mr. West advised one of the founding partners of Anchor Capital, who handled marketing, retired for health reasons. The Vanguard 500 Index was up just under 6 %, fiscal year -to -date. DSM, the large cap growth manager was even to the benchmark. Fiscal year -to -date was 4% ahead of the benchmark at 12.66 %. For the one -year period, they were up 18.15 %. The Vanguard Mid Cap Index fund was up 4.2 %. Fiscal year -to -date, they earned 11%. Manning and Napier, dealing with international equities, were terminated and the transition made on April 1 WCM was added as the concentrated growth manager and the American Funds Euro Pacific Group was added as a core manager. Mr. West did not yet have the figures for the quarter. 6 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 The Schroders core fixed - income was even to the benchmark for the quarter. Fiscal year -to -date, they were up half a percent and for the one, three and five -year periods were good. Mr. West noted there had been an outstanding Investment Policy Statement issue which they were still handling. The document will be signed at the meeting and would forward it. The Treasury Inflation Protection Securities portfolio was up 1.4% for the quarter. The fixed income portfolio worked well during the quarter and was up 3.36 %. The Templeton Global Bond fund was up .26% versus the global benchmark which was down 2.51%. The fund was doing extremely well. There were still capital calls for middle market debt, but the Board already had funds invested. Since the July 1 inception, LBC returned 4.47 %, but they did not yet have figures for Crescent. On March 18 Crescent called $88,000 and on May 7 they called $207,000. On April 21 LBC called $300,000. Mr. West advised this would be a slow process because they call the money when the loans are booked. Intercontinental was up 1.15% for the quarter. Fiscal year -to -date, they were up 6% and year- over -year, were up 12.69 %. For the three -year period, they were up 14.3% and 13.2% for the five year period. ASB real estate was up 2.75% for the quarter. Fiscal year -to -date, they were up 6.5 %, and 13.5% for the one -year period. For the quarter, the fund opened with $83,696,994. With contributions, distributions, management and other fees, it totaled $84,888,141. The return on investment was $2,018,389. Fiscal year to date, investments earned $4.5 million. Mr. West advised the Bogdahn Group officially removed PIMCO from the "Watch" list as they had been watching for personnel and asset flows. C) Attorney Report — Adam Levinson 1) Fire Pension Board & Police Pension Board — RFP for Pension Administrator, Joint venture - Set -up and review process Attorney Kaufman advised 20 minutes ago, Attorney Klausner started arguments in the New Jersey Supreme reme Court regarding ardin Governor Christi's failure to fund pensions as he had promised a few years ago. The Governor underfunded them by billions of dollars. A trial court found Governor Christi had to deliver the funds, but the State appealed the matter which went directly to the Supreme Court. Chair Henderson and Ms. LaDue had been discussing the issue as had the Police Plan and they are very happy with the way the system is set up and with Ms. LaDue. They hoped to find a replacement with experience commensurate to Ms. LaDue's. Ms. Ladue's intention was to remain in the position until the end of 2016. If they started the process now, they could hire a part -time replacement early on to shadow Ms. LaDue and learn the process. 7 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 Attorney Kaufman suggested making an announcement at the FPPTA which is distributed throughout Florida. By word of mouth, he is aware of individuals who retire or are looking for something to do that may be interested in the position. He suggested one option implemented in Plantation was the Pension Resource Center dedicated an employee to the City three days a week. Chair Henderson also pointed out he would Y Y p step down when he retired. He suggested contacting the Police Trustees to see how they wanted to proceed. Attorney Kaufman would contact the FPPTA to place a notice in their mailer or make an announcement at their conference. The Pension Resource Center does a good job, but Fire and Police preferred their own administrator, although the Resource Center could provide a dedicated individual. 2) Chapter 175 State Statutes — Statute 175.032, 8. (a) — Compliance discussion Board Member Petty had emailed Attorney Levinson about Chapter 175 and the ability for only the Fire Chief to opt out of the Firefighers' pension plan. The Division of Retirement has interpreted this to mean it was mandatory for anyone who was not the Fire Chief to participate in the 175 plan. This issue surfaced in Davie, and in that instance, they drafted an ordinance putting everyone who was not a Fire Chief into the plan. This did not have to be done retroactively. It could be done on a prospective basis as long as they would receive some type of credit and have the opportunity to purchase prior service. It was a coordination of benefits issue. If opting to use the 175 Plan, the member would forfeit their general employee time. Attorney Kaufman pointed out, this was acceptable to the Division of Retirement and he distributed a copy of the Davie Ordinance. The City would have to adopt the change or through a request from counsel, request the Fire Chief be moved into the plan, and make up the difference in the contribution rate. If he wants the credited service, there would be an additional 5% difference due to an agreement they made years ago to contribute an additional 5% for the COLA. The Fire Chief could remain in the General Employees' Plan and when he retires, would receive a portion of his benefit, and the rest of the benefit from the Firefighters' Pension Plan. Chair Henderson favored keeping it simple, moving the employee over and becoming compliant with Chapter 175. He did not know who would make up the difference. Mr. Kaufman agreed to draft a letter to the City. Motion Mr. Petty moved they have Klausner and Kaufman draft a letter that we become compliant with the 175 State Statutes and move anyone over that was not compliant. Ms. Bush seconded the motion that unanimously passed. It was noted only one individual was overlooked. 3) SB 584 Implementation Requirement 8 2 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 Attorney Kaufman distributed a memo and learned the Board had already approved their Actuarial Valuation this year. He explained the Division of Retirement developed regulations on how to implement the new bill, which was incorporated into FS 112.664, which has additional disclosure requirements for pension funds. Since it was implemented April 29 the Board had 60 days, until April 29 to implement them. Attorney Kaufman reviewed the memo which was included in the meeting materials. This would require the actuary and investment consultant to do additional work. The Plan's most recent financial statement and actuarial valuations since 2013 to the present will need to be posted showing a side -by side comparison of investment return, versus the assumed rate of return, and any charts or graphs of the date be presented in a standardized user - friendly format. The same information will be posted on the Firefighters' website. If Mr. West had information, he should provide it. The purpose was to show what the valuation would look like if they assumed a return of 200 basis points less than the actual assumed rate of return, which will make the funded status look worse. In those cases, they have asked the actuary to compute it with 200 basis points over the assumed rate of return. The actuary is supposed to provide when the plan would run out of money if there were no additional contributions or investment returns in the plan. Attorney Kaufman explained legally, this was not permissible under Florida Law because employers are always required to make the annual required contribution necessary to pay the normal costs and unfunded liability of the plan. There is a chart from the Division of Retirement, which had been discussed with Mr. West and the actuary they will have to complete and provide to Ms. LaDue who will forward it to the City to post by the end of June. Ms. LaDue had already discussed this with the City's webmaster. She inquired if they had to include the entire actuarial valuation report and entire financial statements and learned they did. It was noted the requirements appear to be designed to make defined benefit plans look bad. Attorney Kaufman advised the Legislature passed SB 172 this year. It has not been presented to the Governor and it was unknown whether he would approve the measure or not. The Board would have to disclose additional information, including the budget, to the plan sponsor and membership before the end of the fiscal year or the next fiscal year. Information regarding what to do with premium tax monies going forward was also included. If the Board had already determined how to spend those funds and there was an agreement between the Union and the City about how the funds would be spent, that was fine. If no agreement existed, there were cost sharing provisions for the funds over and above the amount they received in Chapter monies from calendar year 2012. Any additional revenues not mutually agreed on could be used by the City to offset their contributions. The other half would go to a share plan or a defined contribution -type plan, which was separate from the ad hoc plans. He was unsure the Division of Retirement would approve Boynton Beach's Supplemental plan provisions as a share plan. 9 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 The League of Cities was opposed to the provision and the Unions stood behind the legislation. It was a type of pension reform that did not impact the members. It was noted the minimum standards were to use a 2.75% multiplier. Another bill that passed would require the Board to use the mortality tables used by the Florida Retirement System in the Board's actuarial valuation. That mortality table would be more conservative and cause the City contributions to increase. It was noted the State's tables were hybrid tables. They also have disability and public safety in place. It would assume that civilians would live longer than public safety, which would drive costs up. Chair Henderson noted they look at those tables each year. V. CORRESPONDENCE — 1) Kamp Consulting Solutions — "Your Liability Consultant" dated March 5, 2015 Ms. LaDue advised she spoke to a representative of this company on the phone. She receives many of these types of calls and he sent her this information. This item was for information only. Attorney Kaufman had not heard of the company and thought they may service private defined benefit plans. VI. OLD BUSINESS — 1) Fact Sheet to counter misinformation on Pension Funding — Dave West & Pete Strong — Update Attorney Kaufman commented this was already discussed. 2) 175 Ad Hoc Benefit for 2014 for review — Prepared by Matt Petty Chair Henderson explained the Board needed to approve the ad hoc benefit. Mr. Petty had calculated the benefit and had reviewed the information with Pete Strong, Plan Actuary, to ensure the Ordinance was followed. Ms. LaDue reviewed and approved the benefit payments and Mr. Strong, the Plan Actuary had indicated it was fine. The individuals, dates and other data was correct. This was a spreadsheet that was formulated. The members had to check the amounts from the State were correct, and member eligibility dates were correct, which would determine whether a member would or would not receive a check. The members reviewed the information. It was clarified if a member met the 10 -year requirement for the benefit and then retired, they would receive the benefit when they met normal retirement. It was pointed out this was the last payout to the past retiree group. Motion Mr. Petty moved to pay out the ad hoc payment as written. Ms. Bush seconded the motion that unanimously passed. It was noted the Ordinance requires the payout to be made by the end of the second quarter. 10 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 VII. NEW BUSINESS: A. Invoices for review and approval: 1. Schroder Fixed Income Mgmt — Quarterly fee 06 -30 -2015 - $ 2. DSM Capital Partners LLC — Quarterly fee 06 -30 -2015 - $22,840.15 3. Bogdahn Group — Quarterly fee 03 -31 -2015 - $8,375 4. Klausner, Kaufman, Jensen & Levinson — Service Feb & Mar 2015- $4,770 5. Anchor Capital Advisors — Quarterly fee — 03 -31 -2015 - $ 6. GRS - Service Feb 2015 - $12,229 & Mar 2015 - $550 7. Alerus — Quarterly DROP Ad min Fee - $500 8. Professional Indemnity Agency, Inc. — Paid $9,067 4 -6 -2015 Renewal Trustee Liability Coverage 4- 10- 15/4 -10 -16 9. Intercontinental - Management Quarterly fee 12 -31 -2014 - $8,747.12 withheld from dividend reinvestment plan. 10. ASB Real Estate Fund — Quarterly Fee 3 -31 -2015 withheld - $8,074.03 It was noted the invoice amount for item 1 should be about $7,500. Chair Henderson suggested approving the amount in the range approved and reviewed by Ms. LaDue. Chair Henderson noted the Klausner Kaufman bill increased to $6,060. Anchor Capital would be approximately $16,000. Chair Henderson requested a motion to pay all bills contingent on the Schroder and Anchor bills coming within the normal range. Motion Ms. Bush so moved. Mr. Petty seconded the motion that unanimously passed. B Form 1, Financial Disclosure for the Trustees. Chair Henderson reminded the members to file the form with Ms. LaDue. She will then send them via certified mail to the State. VIII. PENSION ADMINISTRATOR'S REPORT: 1. Benefits as of May 1, 2015. Chair Henderson reviewed the benefits as of May 1, 2015. 2. Pension Hardware /Software Update — Desktop /Monitor and All- purpose Printer - Existing program transfers completed and working with no problems March 23, 2015. Chair Henderson inquired if they completed the data transfer to the Pension Resources. Ms. LaDue explained she transferred her programs from her laptop to the new 11 MEETING MINUTES FIREFIGHTERS' PENSION BOARD BOYNTON BEACH, FL MAY 6, 2015 computer. They had not initiated the new Resource Center programs yet and were still working on them to ensure that when they set her up and run a side by side, the information would be correct. When the program was complete, the website will be up and the members can go there to sign up. IX. PUBLIC COMMENTS: The next meeting will be August 5, 2015. Ms. Bush inquired if Board Member Taylor would be present and learned he would. As long as a quorum was present, the Board could proceed. X. ADJOURNMENT: Motion Mr. Petty moved to adjourn. Ms. Bush seconded the motion that unanimously passed. The meeting was adjourned at 10:56 a.m. daltiVA-b Catherine Cherry ry Minutes Specialist 060515 12 Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone . GRs Consultants &. Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com } June 26, 2015 F; 0,1/ Y % V ft Ms. Barbara LaDue U' Pension Administrator ' ` fi Renaissance Executive Suites 1500 Gateway Blvd., #220 t ' Boynton Beach, FL 33426 Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Dear Barbara: Enclosed is the REVISED Chapter 112.664, Florida Statutes Compliance Report for the City of Boynton Beach Municipal Firefighters' Pension Trust Fund in connection with the October 1, 2014 Funding Actuarial Valuation Report and the Plan's Financial Reporting for the Year Ending September 30, 2014. This report has been revised after receiving recent guidance from the Division of Retirement that the benefit payment projection should be based only on benefits accrued through the valuation date. A link to this report, as well as links to the October 1, 2014 Actuarial Valuation Report, the Plan's financial statement, and the Division of Retirement Actuarial Summary Fact Sheet for the Plan will need to be placed on the City's website since the Pension Plan does not have its own website. The investment consultant will also need to provide certain information to be included on the City's website (the asset allocation and 5 -year history of actual versus assumed investment returns). We welcome your questions and comments. Sincerely yours, Peter N. Strong, FSA , Senior Consultant and Actuary PS /jc Enclosure Gps Gabriel Roeder Smith & Company Consultants &Actuaries One East Broward Blvd. 954.527.1616 phone Suite 505 Ft. 954.525.0083 fax Lauderdale, FL 33301 1804 www.gabrielroeder.com June 26, 2015 Board of Trustees City of Boynton Beach Municipal Firefighters Pension Fund Boynton Beach, Florida Dear Board Members: Gabriel, Roeder, Smith & Company (GRS) has been engaged by the City of Boynton Beach Municipal Firefighters Pension Fund (System) to prepare a disclosure report to satisfy the requirements set forth in Ch. 112.664, F.S. and as further required pursuant to Ch. 60T- 1.0035, F.A.C. This report was prepared at the request of the Board and is intended for use by the Retirement Board 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 report is to provide the required information specified in Ch. 112.664, F.S. as well as supplement this information with additional exhibits. This report should not be relied on for any purpose other than the purpose described above. The findings 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 scope of this engagement does not include an analysis of the potential range of such measurements. This report was based upon information furnished by the City and the Board concerning Plan 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 City. Except as otherwise indicated as required for the disclosures contained herein, this report was prepared using certain assumptions selected by the Board as described in our October 1, 2014 actuarial valuation report. This report is also based on the Plan Provisions, census data, and financial information as summarized in our October 1, 2014 actuarial valuation report. Please refer to the October 1, 2014 actuarial valuation report, dated February 20, 2015, for summaries and descriptions of this information. The use of an investment return assumption that is 2% higher than the investment return assumption used to determine the funding requirements does not represent an estimate of future Plan experience nor does it reflect an observation of future return estimates inherent in financial market data. The use of this investment return assumption is provided as a counterpart to the Chapter 112.664, Florida Statutes requirement to utilize an investment return assumption that is 2% lower than the assumption used to determine the funding requirements. The inclusion of the additional exhibits showing the effect of using a 2% higher investment return assumption shows a more complete assessment of the range of possible results as opposed to showing a one -sided range as required by Florida Statutes. The undersigned are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 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 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 Standards Board and with applicable statutes. With respect to the reporting standards for defined benefit retirement plans or systems contained in Section 112.664(1) F.S., the actuarial disclosures required under this section were prepared and complete 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, and in my opinion, meet the requirements of Section 112.664(1), F.S. and Section 60T- 1.0035, F.A.C. Respectfully submitted, GABRIEL, ROEDER, SMITH AND COMPANY ,fin, �I By �% r . _AV/ % By ' l Q9c mac, Peter N. Strong, FSA, • • , FCA Melissa R. Algayer, , F Enrolled Actuary No. 1' Enrolled Actuary No. 14 -06467 Senior Consultant & Actuary Consultant & Actuary Gabriel Roeder Smith & Company GRS Gabriel Roeder Smith & Company Consultants & Actuaries CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2014 Funding Actuarial Valuation Report And the Plan's Financial Reporting for the Year Ending September 30, 2014 GRS TABLE OF CONTENTS Title Page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections 1. Using assumptions from the Plan's latest actuarial valuation 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 GRS CH. 112.664, Florida Statutes RESULTS GRS 1 • Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30, 2014 1. Total pension liability a. Service Cost $ 2,772,724 b. Interest 8,188,369 c. Benefit Changes - d. Difference between actual & expected experience & Other 627,719 e. Assumption Changes - f. Benefit Payments (4,292,070) g. Contribution Refunds (50,673) h. Net Change in Total Pension Liability 7,246,069 i. Total Pension Liability - Beginning 108,781,854 j. Total Pension Liability - Ending $ 116,027,923 2. Plan Fiduciary Net Position a. Contributions - Employer $ 3,522,147 b. Contributions - Non - Employer Contributing Entity 1,016,561 c. Contributions - Member 1,291,773 d. Net Investment Income 7,187,580 e. Benefit Payments (4,292,070) f. Contribution Refunds (50,673) g. Administrative Expense (122,390) h. Other 343,843 i. Net Change in Plan Fiduciary Net Position 8,896,771 j. Plan Fiduciary Net Position - Beginning 69,382,320 k. Plan Fiduciary Net Position - Ending $ 78,279,091 3. Net Pension Liability / (Asset) 37,748,832 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 7.65% Mortality Table 1983 Group Annuity Mortality Table GRS 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30, 2014 1. Total pension liability a. Service Cost $ 2,992,511 b. Interest 8,612,499 c. Benefit Changes - d. Difference between actual & expected experience & Other 627,719 e. Assumption Changes mp - f. Benefit Payments (4,292,070) g. Contribution Refunds (50,673) h. Net Change in Total Pension Liability 7,889,986 i. Total Pension Liability - Beginning 114,106,250 j. Total Pension Liability - Ending $ 121,996,236 2. Plan Fiduciary Net Position a. Contributions - Employer $ 3,522,147 b. Contributions - Non - Employer Contributing Entity 1,016,561 c. Contributions - Member 1,291,773 d. Net Investment Income 7,187,580 e. Benefit Payments (4,292,070) f. Contribution Refunds (50,673) g. Administrative Expense (122,390) h. Other 343,843 i. Net Change in Plan Fiduciary Net Position 8,896,771 j. Plan Fiduciary Net Position - Beginning 69,382,320 k. Plan Fiduciary Net Position - Ending $ 78,279,091 3. Net Pension Liability / (Asset) 43,717,145 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 7.65% Mortality Table RP -2000 fully generational using Scale AA GRS 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30, 2014 1. Total pension liability a. Service Cost $ 4,720,908 b. Interest 8,163,639 c. Benefit Changes - d. Difference between actual & expected experience & Other 807,780 e. Assumption Changes - f. Benefit Payments (4,292,070) g. Contribution Refunds (50,673) h. Net Change in Total Pension Liability 9,349,584 i. Total Pension Liability - Beginning 144,285,351 j. Total Pension Liability - Ending $ 153,634,935 2. Plan Fiduciary Net Position a. Contributions - Employer $ 3,522,147 b. Contributions - Non - Employer Contributing Entity 1,016,561 c. Contributions - Member 1,291,773 d. Net Investment Income 7,187,580 e. Benefit Payments (4,292,070) f. Contribution Refunds (50,673) g. Administrative Expense (122,390) h. Other 343,843 i. Net Change in Plan Fiduciary Net Position 8,896,771 j. Plan Fiduciary Net Position - Beginning 69,382,320 k. Plan Fiduciary Net Position - Ending $ 78,279,091 3. Net Pension Liability / (Asset) 75,355,844 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 5.65% Mortality Table RP -2000 fully generational using Scale AA GRS 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30, 2014 1. Total pension liability a. Service Cost $ 1,971,243 b. Interest 8,794,305 c. Benefit Changes - d. Difference between actual & expected experience & Other 447,657 e. Assumption Changes - f. Benefit Payments (4,292,070) g. Contribution Refunds (50,673) h. Net Change in Total Pension Liability 6,870,462 i. Total Pension Liability - Beginning 93,678,529 j. Total Pension Liability - Ending $ 100,548,991 2. Plan Fiduciary Net Position a. Contributions - Employer $ 3,522,147 b. Contributions - Non - Employer Contributing Entity 1,016,561 c. Contributions - Member 1,291,773 d. Net Investment Income 7,187,580 e. Benefit Payments (4,292,070) f. Contribution Refunds (50,673) g. Administrative Expense (122,390) h. Other 343,843 i. Net Change in Plan Fiduciary Net Position 8,896,771 j. Plan Fiduciary Net Position - Beginning 69,382,320 k. Plan Fiduciary Net Position - Ending $ 78,279,091 3. Net Pension Liability / (Asset) 22,269,900 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Retum Assumption 9.65% Mortality Table RP -2000 fully generational using Scale AA GRS 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions from the Plan's Latest Actuarial Valuation Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,148,932 4,682,917 5,420,078 64,411,771 2016 64,411,771 4,621,949 5,571,570 63,462,150 2017 63,462,150 4,543,455 5,765,501 62,240,104 2018 62,240,104 4,437,389 6,149,841 60,527,652 2019 60,527,652 4,296,478 6,482,558 58,341,572 2020 58,341,572 4,123,607 6,720,294 55,744,884 2021 55,744,884 3,915,129 7,086,340 52,573,673 2022 52,573,673 3,670,984 7,254,437 48,990,220 2023 48,990,220 3,390,849 7,557,798 44,823,271 2024 44,823,271 3,072,535 7,712,272 40,183,534 2025 40,183,534 2,713,821 7,998,502 34,898,854 2026 34,898,854 2,311,224 8,165,071 29,045,006 2027 29,045,006 1,864,851 8,360,666 22,549,191 2028 22,549,191 1,374,042 8,457,264 15,465,969 2029 15,465,969 841,809 8,483,708 7,824,069 2030 7,824,069 266,317 8,546,340 - 2031 - - 8,532,346 - 2032 - - 8,514,296 - 2033 - - 8,462,547 - 2034 - - 8,435,562 - 2035 - - 8,369,203 - 2036 - - 8,279,603 - 2037 - - 8,165,432 - 1 2038 - - 8,037,536 - 2039 - - 7,896,841 - 2040 - - 7,737,036 - Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 15.92 Certain Key Assumptions Valuation Investment return assumption 7.50% Valuation Mortality Table 1983 Group Annuity Mortality Table Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. Market Value of Expected Projected Benefit Market Value of 1 FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,148,932 4,682,849 5,421,884 64,409,897 2016 64,409,897 4,621,447 5,581,196 63,450,149 2017 63,450,149 4,541,844 5,784,457 62,207,536 2018 62,207,536 4,433,827 6,179,686 60,461,677 2019 60,461,677 4,289,896 6,526,126 58,225,447 2020 58,225,447 4,112,695 6,779,032 55,559,109 2021 55,559,109 3,898,167 7,167,091 52,290,186 2022 52,290,186 3,645,835 7,358,114 48,577,906 2023 48,577,906 3,355,042 7,688,038 44,244,910 2024 44,244,910 3,023,362 7,866,835 39,401,437 2025 39,401,437 2,648,333 8,180,652 33,869,118 2026 33,869,118 2,225,829 8,382,793 27,712,154 2027 27,712,154 1,755,321 8,615,739 20,851,737 2028 20,851,737 1,235,520 8,756,281 13,330,975 2029 13,330,975 668,736 8,828,991 5,170,720 2030 5,170,720 52,710 8,935,829 - 2031 - - 8,977,799 - 2032 - - 9,013,380 - 2033 - - 9,024,301 - 2034 - - 9,058,610 - 2035 - - 9,062,038 - 2036 - - 9,042,177 - 2037 - - 9,003,494 - 2038 - - 8,951,079 - 2039 - - 8,885,593 - 2040 - - 8,803,538 - Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 15.58 Certain Key Assumptions Valuation Investment return assumption 7.50% Valuation Mortality Table RP -2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,148,932 3,434,089 5,421,884 63,161,137 2016 63,161,137 3,320,380 5,581,196 60,900,321 2017 60,900,321 3,190,445 5,784,457 58,306,309 2018 58,306,309 3,036,906 6,179,686 55,163,529 2019 55,163,529 2,854,526 6,526,126 51,491,928 2020 51,491,928 2,645,633 6,779,032 47,358,529 2021 47,358,529 2,407,624 7,167,091 42,599,062 2022 42,599,062 2,140,600 7,358,114 37,381,549 2023 37,381,549 1,844,564 7,688,038 31,538,075 2024 31,538,075 1,518,256 7,866,835 25,189,496 2025 25,189,496 1,160,454 8,180,652 18,169,298 2026 18,169,298 768,785 8,382,793 10,555,290 2027 10,555,290 343,608 8,615,739 2,283,159 2028 2,283,159 - 8,756,281 - 2029 - - 8,828,991 - 2030 - - 8,935,829 - 2031 - - 8,977,799 - 2032 - - 9,013,380 - 2033 - - 9,024,301 - 2034 - - 9,058,610 - 2035 - - 9,062,038 - 2036 - - 9,042,177 - 2037 - - 9,003,494 - 2038 - - 8,951,079 - 2039 - - 8,885,593 - 2040 - - 8,803,538 - Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 13.25 Certain Key Assumptions Valuation Investment return assumption 5.50% Valuation Mortality Table RP -2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Market Value of Expected Projected Benefit Market Value of FYE Assets (BOY) Investment Return Payments Assets (EOY) 2015 65,148,932 5,931,609 5,421,884 65,658,657 2016 65,658,657 5,972,466 5,581,196 66,049,927 2017 66,049,927 5,999,981 5,784,457 66,265,451 2018 66,265,451 6,001,683 6,179,686 66,087,448 2019 66,087,448 5,968,317 6,526,126 65,529,638 2020 65,529,638 5,903,312 6,779,032 64,653,918 2021 64,653,918 5,801,685 7,167,091 63,288,512 2022 63,288,512 5,662,898 7,358,114 61,593,297 2023 61,593,297 5,486,181 7,688,038 59,391,440 2024 59,391,440 5,268,512 7,866,835 56,793,117 2025 56,793,117 5,006,765 8,180,652 53,619,230 2026 53,619,230 4,695,644 8,382,793 49,932,081 2027 49,932,081 4,334,300 8,615,739 45,650,643 2028 45,650,643 3,920,888 8,756,281 40,815,249 2029 40,815,249 3,458,072 8,828,991 35,444,330 2030 35,444,330 2,942,759 8,935,829 29,451,260 2031 29,451,260 2,371,424 8,977,799 22,844,886 2032 22,844,886 1,742,129 9,013,380 15,573,634 2033 15,573,634 1,050,841 9,024,301 7,600,174 1 2034 7,600,174 291,733 9,058,610 - 2035 - - 9,062,038 - 2036 - - 9,042,177 - 2037 - - 9,003,494 - 2038 - - 8,951,079 - 2039 - - 8,885,593 - 2040 - - 8,803,538 - Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 19.83 Certain Key Assumptions Valuation Investment return assumption 9.50% Valuation Mortality Table RP -2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near -term and long -term future. GRS 9 ACTUARIALLY DETERMINED CONTRIBUTION 112.664(1)(b) F.S. except 2% higher Plan's Latest 112.664(1)(a) F.S. 112.664(1)(b) F.S. investment return Actuarial Valuation Assumptions Assumptions assumption A. Valuation Date October 1, 2014 October 1, 2014 October 1, 2014 October 1, 2014 B. Actuarial Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2016 9/30/2016 C. Assumed Dates of Employer Contributions 10/1/2015 10/1/2015 10/1/2015 10/1/2015 D. Annual Payment to Amortize Unfunded Actuarial Liabili ty $ 2,842,385 $ 3,157,368 $ 3,965,060 $ 2,313,115 E. Employer Normal Cost 2,014,298 2,269,111 4,214,300 1,123,978 F. Employer ADC if Paid on Valuation Date: D + E 4,856,683 5,426,479 8,179,360 3,437,093 G. Employer ADC Adjusted for Frequency of Payments 4,856,683 5,426,479 8,179,360 3,437,093 H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 49.44 % 55.24 % 83.26 % 34.99 % I. Covered Payroll for Contribution Year 9,469,072 * 9,469,072 * 9,469,072 * 9,469,072 * J. Covered Payroll per Valuation 9,823,480 9,823,480 9,823,480 9,823,480 K. Employer ADC for Contribution Year: H x J, but not less than G 4,856,683 5,426,479 8,179,360 3,437,093 L. Estimated State Revenue in Contribution Year 704,322 704,322 704,322 704,322 M. Net Employer ADC in Contribution Year 4,152,361 4,722,157 7,475,038 2,732,771 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M - (Max of I and J) 42.27 % 48.07 % 76.09 % 27.82 9 O. Expected Member Contribution 1,178,818 1,178,818 1,178,818 1,178,818 P. Total Contribution (Including Members) m Contribution Year 6,035,501 6,605,297 9,358,178 4,615,911 Q. Total Contribution as % of Covered Payroll in Contribution Year: P _ (Max of I and J) 61.44 % 67.24 % 95.26 % 46.99 % R. Certain Key Assumptions Investment Retum Assumption 7.50% 7.50% 5.50% 9.50% Mortality Table 1983 Group RP -2000 fully RP -2000 fully RP -2000 fully Annuity generational generational generational Mortality Table using Scale AA using Scale AA using Scale AA *Estimated payroll from Finance Department. Actual contributions should be no less than the listed percentage of payroll multiplied by actual covered payroll. GRS KL: \USNLR KAUFNI AN jENSL-N LEVINSOlN el f MEMORANDUM 1'o: All Florida Pension Clients Front: Klausner Kaufman Jensen & Levinson Re: Reminder of pending deadlines Date: July 8, 2015 The purpose of this update is to remind all Florida defined benefit pension plans of the pending deadlines to comply with recent legislation, including SB 534 (otherwise known as "Chapter 2013 - 100 "). Additional requirements for police and firefighter pension plans were adopted by SB 172. By way of background, SB 534 created Section 112.664, Florida Statutes, which contains extensive new reporting requirements. The regulations implementing SB 534 were finalized by the Division of Retirement on April 29, 2015 when Chapter 60T- 1.0035, Florida Administrative Code, went into effect. As a result, the following requirements apply to all Florida governmental defined benefit plans: • 112.664 Compliance Report (otherwise known as the "Rule 60T- 1.0035 Report ") indicating number of years that the plan's current market value of assets can sustain payment of retirement benefits without additional contributions, along with other required data: Prepared by: Actuary (who will load the Report onto the Division of Retirement's website); Due: 60 days after approval of actuarial valuation, or June 29 (for plans who approved their valuations prior to April 29) and annually thereafter; Post: on plan sponsor website and plan's website; Required by: Section 112.664(1)(a) -(d). 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916 -1202 o FAX: (954) 916 -1232 www.robertdklausner.com • Investment history - Side -by -Side comparison of actual rate of return, assumed rate of return, and investment portfolio composition (cash, equity, bond, alternative investments) beginning with 2013 data: Prepared by: Investment consultant; Due: Annually; Post: on plan sponsor website and plan's website; Required by: Section 112.664(2)(b)(2). • Actuarial valuation (otherwise known as "actuarial report"): Prepared by: Actuary; Due: At least every three years (most plans perform annual valuations); Post: on plan sponsor website and plan's website; Required by: Section 112.63(2) and 112.664(2)(b)1. • Audited financial statements (otherwise known as "audit "): Prepared by: Auditor; Due: Annually for police and fire plans; Post: on plan sponsor website and plan's website; Required by: Section 112.664(2)(b)1. • Link to Division of Retirement's Summary Fact Sheet: Prepared by: Division of Retirement; Due: Updated annually by Division of Retirement; Post: on plan sponsor website and plan's website; Required by: Section 1112.664(2)(b)1 & 112.665(1)(e). Additional requirements for Police and Fire Plans under SB 172: • "Detailed Accounting Report ": Our office recommends treating the audited financial statements described above as the new detailed accounting report. We also recommend P ' amending your summary plan description to provide that the detailed accounting report � f ' and administrative expense budget are available upon request from the Administrator. • "Administrative Expense Budget ": E Prepared by: Administrator; 1 0 Due: Prior to beginning of the fiscal year (prior to October 1 for most plans); °1 Post: Not required to be posted, but required to be "made available" to the plan sponsor and plan membership; Required by: Section 175.061(8)(a)1 and 185.05(8)(a)2. Summary All Florida governmental defined benefit plans are reminded of the new reporting compliance deadlines under SB 534, which are codified in Section 112.664, Florida Statutes, and Chapter 60T- 1.0035, Florida Administrative Code. In particular, your 112.664 Compliance Report is due 60 days after approval of this year's actuarial valuation (or was due on June 29 for plans who approved their valuations prior to April 29). Our office is available to answer any questions. a�LU !Al I rani wai 1 Lcyai ruuuai in iy - vi 1 1 1 1 1 0 u Ln 01 y Sec. 18 -222. Deferred retirement option plan. (a) A deferred retirement option plan ( "DROP ") is hereby created. (b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the plan. (c) Participation in the DROP must be exercised within the first thirty (30) years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement plan as an active member, may not exceed thirty (30) years. The maximum period of participation in the DROP is five (5) years. An employee's election to participate in the DROP plan shall be irrevocable and shall be made by executing a resignation notice on a form prescribed by the City. (d) Upon exercising the right to participate in the DROP, an employee's creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average of the five (5) highest of the ten (10) years immediately preceding participation in the DROP as the compensation basis. Accumulated, unused sick and vacation leave shall be included in the compensation calculation; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service. (e) Payment shall be made into the employee's DROP account as if the employee had terminated employment in the City in an amount determined by the employee's selection of the payment option. (f) An employee's account in the DROP program shall earn interest in one of three ways. The selection of the earnings program shall be irrevocable and shall be made prior to the first deposit in the DROP account. The options are: (1) Gain or lose interest at the same rate as the Plan; or, (2) At an annual fixed rate of seven percent (7 %); or, (3) In a self - directed account utilizing mutual funds selected by the board. (g) An employee shall terminate service with the City at the conclusion of five (5) years in the DROP. (h) All interest shall be credited to the employee's DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in the DROP, interest shall be pro -rated to the last business day of the month preceding the death of the member. (i) Upon termination with the City, an employee may receive payment within forty -five (45) days of the member requesting payment or may defer payment until a time not later than the latest date authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member. (j) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal Revenue Service. (k) No payment may be made from the DROP until the employee actually separates from service with the City. (1) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP. data: text/ html; charset= utf- 8,% 3Cdiv% 20class% 3D% 22Section% 22% 20style% 3D% 22margin% 3A% 2018pt %20auto %209pt %2072pt %3B %20font- family %3A %.., 1/2 • Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Monday, June 22, 2015 1:36 PM To: Adam Levinson Cc: Henderson, Luke (HendersonL @bbfl.us); Howard, Tim (HowardT @bbfl.us) Subject: Boynton Fire - Deputy Chief Gregory Hoggatt SR Adam: I was speaking with Tim Howard, Director of Financial Services with the City, about the transfer of Gregory Hoggatt from the General EE Pension to the Fire Pension, effective 10 -22 -2012, his date of hire, since Chapter 175 indicates that only the Fire CHIEF may opt out of the Fire Pension To get this transfer started, Tim requested a letter from you (Fire Pension attorney) requesting this change with reason for same so that he may document the records. This will get the transfer underway and further details may be worked out. Thanks. Barb La Due Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 Hoggatt Sr. i � Employee Type Current PD Number Last Name First Name Check Date - Calc Code Amount 3804 HOGGATT SR GREGORY 11/9/2012 PG $ 282.69 3804 HOGGATT SR GREGORY 11/21/2012 PG $ 282.69 3804 HOGGATT SR GREGORY 12/7/2012 PG $ 282.69 3804 HOGGATT SR GREGORY 12/21/2012 PG $ 282.69 3804 HOGGATT SR GREGORY 1/4/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 1/18/2013 PG $ 313.49 3804 HOGGATT SR GREGORY 2/1/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 2/15/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 3/1/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 3/15/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 3/29/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 4/12/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 4/26/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 5/10/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 5/24/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 6/7/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 6/21/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 7/5/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 7/19/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 8/2/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 8/16/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 8/30/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 9/13/2013 PG $ 282.69 3804 HOGGATT SR GREGORY 9/27/2013 PG $ 298.09 3804 HOGGATT SR GREGORY 10/11/2013 PG $ 285.87 3804 HOGGATT SR GREGORY 10/25/2013 PG $ 306.57 3804 HOGGATT SR GREGORY 11/8/2013 PG $ 291.17 3804 HOGGATT SR GREGORY 11/22/2013 PG $ 306.57 3804 HOGGATT SR GREGORY 12/6/2013 PG $ 291.17 3804 HOGGATT SR GREGORY 12/20/2013 PG $ 306.57 3804 HOGGATT SR GREGORY 1/3/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 1/17/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 1/31/2014 PG $ 306.57 3804 HOGGATT SR GREGORY 2/14/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 2/28/2014 PG $ 306.57 3804 HOGGATT SR GREGORY 3/14/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 3/28/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 4/11/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 4/25/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 5/9/2014 PG $ 291.17 Page 1 Hoggatt Sr. 3804 HOGGATT SR GREGORY 5/23/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 6/6/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 6/20/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 7/3/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 7/18/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 8/1/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 8/15/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 8/29/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 9/12/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 9/26/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 10/10/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 10/24/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 11/7/2014 PG $ 378.52 3804 HOGGATT SR GREGORY 11/21/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 12/5/2014 PG $ 291.17 3804 HOGGATT SR GREGORY 12/19/2014 PG $ 298.87 3804 HOGGATT SR GREGORY 1/2/2015 PG $ 291.17 3804 HOGGATT SR GREGORY 1/16/2015 PG $ 291.17 3804 HOGGATT SR GREGORY 1/30/2015 PG $ 298.87 3804 HOGGATT SR GREGORY 2/13/2015 PG $ 346.79 3804 HOGGATT SR GREGORY 2/27/2015 PG $ 304.70 3804 HOGGATT SR GREGORY 3/13/2015 PG $ 297.00 3804 HOGGATT SR GREGORY 3/27/2015 PG $ 304.70 3804 HOGGATT SR GREGORY 4/10/2015 PG $ 297.00 3804 HOGGATT SR GREGORY 4/24/2015 PG $ 304.70 3804 HOGGATT SR GREGORY 5/8/2015 PG $ 297.00 3804 HOGGATT SR GREGORY 5/22/2015 PG $ 304.70 $ 19,829.85 Page 2 Hoggatt Sr. Current Fire Pension Additional Earnings Amt (12 %) Contribution Needed $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,478.48 $ 537.42 $ 223.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 51102 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,038.48 $ 484.62 $ 201.93 $ 4,258.48 $ 511.02 $ 212.93 $ 4,083.90 $ 490.07 $ 204.20 $ 4,379.60 $ 525.55 $ 218.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,379.60 $ 525.55 $ 218.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,379.60 $ 525.55 $ 218.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,379.60 $ 525.55 $ 218.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,379.60 $ 525.55 $ 218.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 Page 3 Hoggatt Sr. $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 5,407.48 $ 648.90 $ 270.38 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,159.60 $ 499.15 $ 207.98 $ 4,159.60 $ 499.15 $ 207.98 $ 4,269.60 $ 512.35 $ 213.48 $ 4,954.09 $ 594.49 $ 247.70 $ 4,352.80 $ 522.34 $ 217.64 $ 4,242.80 $ 509.14 $ 212.14 $ 4,352.80 $ 522.34 $ 217.64 $ 4,242.80 $ 509.14 $ 212.14 $ 4,352.80 $ 522.34 $ 217.64 $ 4,242.80 $ 509.14 $ 212.14 $ 4,352.80 $ 522.34 $ 217.64 $ 283,285.39 $ 33,994.27 $ 14,164.42 Page 4 The Ci ®Boynton Beach OFFICE OF THE CITY MANAGER r 100 East Boynton Beach Boulevard 0. P.O. Box 310 Boynton Beach, Florida 33425 -0310 561 -742 -6010 July 8, 2015 Board of Trustees of the Municipal Firefighters' Pension Trust Fund Luke Henderson, Chairman P.O. BOX 310 Boynton Beach, FL (33425 -0310) Chairman: At a recent strategic planning workshop the City Commission identified the need to review our current pension system. With continued rising costs and increased fund liabilities, the City is concerned with the future sustainabili of the pension ty ty P program. The City Commission has directed City staff to research alternative funding scenarios. In order to do so as efficiently as possible the City would like to engage Gabriel, Roeder, Smith & Company (GRS). Since Gabriel, Roeder, Smith & Company (GRS) is currently retained by your Board, they have requested that your Board authorize their firm to be engaged by the City to run projections under alternative scenarios as requested by the City. I am requesting that your Board consider this matter as soon as practicable and authorize GRS to engage the City to perform services as described above. Thank you in advance for your cooperation in working with the City to maintain a strong and viable pension program. If you have any questions please contact the City Manager, Lori LaVerriere at 561.742.6010. Sincerely, !:: " ayor Cc: Lori LaVerriere Tim Howard Amencv's Gateway to the Gulfstrre&m Barbara Ladue From: Barbara Ladue <ladueb @bbpdpension.com> Sent: Tuesday, June 23, 2015 9:11 AM To: karjalainena @bbfl.us Cc: Henderson, Luke (HendersonL @bbfl.us); Adam Levinson; Pete.Strong @gabrielroeder.com; Richard Cristini Subject: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite Since the Fire Pension does not have it's own website these required reports and disclosures will need to be placed on the City's website. There are 4 reports that I will forward under separate Emails with PDF files attached. The reports are as follows:_ 1) Chapter 112.664, F.S. Compliance Report — . 6t n 0,5e,, 2) Actuarial Valuation Report 10 -01 -2014 3) Financial Statements — September 30, 2014 & 2013 4) Asset Allocation by Segments along with Five Year History of Returns. Please let me know if you have any problems with this information. Four separate Emails will follow. Thanks. Barb La ;ails Pension Administrator Boynton Beach Police & Fire Pension Funds Phone: (561) 739.7972 1 Barbara Ladue e From: Pete.Strong @gabrielroeder.com Sent: Tuesday, June 23, 2015 10:18 AM To: KarjalainenA @bbfl.us; ladueb @bbpdpension.com Cc: HendersonL @bbfl.us; adam @robertdklausner.com; rcristin @tampabay.rr.com Subject: RE: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite There is one more thing to include on the website... a link to the Division of Retirement's fact sheet for the pension plan which shows this disclosure information. This cannot be completed until after the DOR posts the information though. Thanks! -Pete Strong From: Karjalainen, Alan [mailto:KarjalainenA@ bbfl.us] Sent: Tuesday, June 23, 2015 9:13 AM To: 'Barbara Ladue' Cc: Henderson, Luke; Adam Levinson; Strong, Pete (FLP1); Richard Cristini Subject: RE: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite OK. Thank you. Alan Karjalainen, Web Design Coordinator Information Technology Services City of Boynton Beach 100 E. Boynton Beach Blvd. 1 Boynton Beach, Florida j3435 o: 561- 742 -6072 KarjalainenA®bbfl.us 1 www.bovnton- beach.org E ©r= America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to me via email may be subject to disclosure.Under Florida records law, email addresses are public records. Therefore, your e-mail communication and your e-mail address may be subject to public disclosure. From: Barbara Ladue [ mailto :ladueb@abbpdpension.com] Sent: Tuesday, June 23, 2015 9:11 AM To: Karjalainen, Alan Cc: Henderson, Luke; Adam Levinson; Pete .StronOgabrielroeder.com; Richard Cristini Subject: Boynton Fire Pension - Required Reports /Disclosures for City's WebSite Allen: Since the Fire Pension does not have it's own website these required reports and disclosures will need to be placed on the City's website. There are 4 reports that I will forward under separate Emails with PDF files attached. The reports are as follows: Barbara Ladue From: Pete.Strong @gabrielroeder.com Sent: Thursday, July 02, 2015 5:05 PM To: Iadueb @bbpdpension.com Cc: adam @robertdklausner.com; hendersonluke @bellsouth.net; c100560 @gabrielroeder.com Subject: Boynton Fire - Extra Payments Toward the Unfunded Liablity Hi Barbara, During the Boynton Firefighters' special Board of Trustees meeting held on June 18, 2015, I brought up the possibility of making extra payments towards the unfunded liability (from either the City or by using excess Chapter 175 State money). As I mentioned at the meeting, if this were done the Board could choose how to apply the extra UAL payments. For instance, if the funds were used to pay off amortization bases with the lowest number of years remaining, then this would remove amortization bases where amortization payments are the highest relative to the size of the remaining unamortized amounts, which would in turn have the largest relative (dollar amount) impact on the size of the City's future contribution requirements. There are three UAL amortization bases with 8 years remaining. The remaining unamortized amounts for these bases as of October 1, 2014 were $284,668, $544,416 and $631,042. The current amortization payments on these amounts are $39,839, $76,191 and $88,315, respectively. Each of these amortization payments is about 14% of the unamortized amount, so this means the City's required contribution could be reduced by about $14,000 for each $100,000 in extra UAL payments, if the extra payments are applied directly to the amortization bases with 8 years remaining. Compare this to the amortization bases with 30 years remaining... the amortization payment for the $1,753,497 base established on 10/1/2014 is $90,687. This is just 5.2% of the unamortized balance, so if extra UAL payments were applied toward the amortization base established 10/1/2014 (with 30 years remaining), then the City's required contribution would be reduced by only about $5,200 for each $100,000 in extra UAL payments. Of course, the reduction in the contribution requirement would last longer if the extra payments are applied toward amortization bases with the higher remaining periods, but the City contribution impact (reduction) would be much more significant (for the next 8 years) if the amortization bases with the shortest remaining periods are paid down first. Hope this all makes sense. Please let me know if you have questions. Best regards, Pete Strong Telephone: (954)' 527 -1616 (ext. 2102) Peter N. Strong, FSA, EA, FCA, MAAA Direct: (954) 713 - 2102 Senior Consultant and Actuary Fax: (954) 525 -0083 Gabriel, Roeder, Smith & Company pete.strong@gabrielroeder.com One East Broward Boulevard Suite 505 The above communication shall not be construed to provide tax advice, legal advice or investment advice. Fort Lauderdale, FL 33301 -1804 Notice of Confidentiality: This transmission contains information that may be confidential and that may also be privileged. Unless y receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its conten error, please not& the sender immediately and delete it from your system. TA INTERCONTINENTAL REAL ESTATE CORPORATION I N T E R C O N T I N E N TA L 1 270 SOLDIERS FIELD ROAD BOSTON, MASSACHUSETTS 02135-1003 TELEPHONE 617 -782 -2600 VIA UPS FACSIMILE 617 -782 -9442 www.intercontinental.net b 4 July 1, 2015' 1 ak Av Ms. Barbara La Due Pension Administrator City of Boynton Beach Firefighters' Pension Fund 1500 Gateway Boulevard Renaissance Executive Suites, Suite 220 Boynton Beach, FL 33426 RE: Seventeenth Amendment to Limited Liability Company Agreement of U.S. Real Estate Investment Fund, LLC Dear Member: Pursuant to Section 15.4 of the Limited Liability Company Agreement (the "Agreement ") of U.S. Real Estate Investment Fund, LLC (the "Company "), this shall serve as notification by the Manager and the Company of the Seventeenth Amendment to the Agreement, a copy of which is included herewith. The purpose of this Amendment is to resolve an ambiguity with respect to the priority of a contribution of Property in consideration of Interests in the Company. While no action on your part is required at this time, if you have any questions in this regard, please do not hesitate to contact counsel to the Company, James M. Bradley. He can be reached at (617) 779 -0422. If I can be of assistance, please do not hesitate to contact me. I can be reached at (617) 782 -2600. Sincerely, Peter Palandjian President O 202 SEVENTEENTH AMENDMENT TO THE LEVHTED LIABILITY COMPANY AGREEMENT OF U.S. REAL ESTATE INVESTMENT FUND, LLC This Seventeenth Amendment (this "Amendment ") to the Limited Liability Company Agreement, dated as of September 1, 2006 (the "LLC Agreement "), of U.S. Real Estate Investment Fund, LLC, a Delaware limited liability company (the "Company "), is entered into by Intercontinental Real Estate Corporation, a Massachusetts corporation, as Manager (the "Manager ") on June 30, 2015 and shall be effective as of the Effective Date (as such term is defined below). WITNESSETH WHEREAS, pursuant to Section 15.4 of the LLC Agreement, the Manager may amend the LLC Agreement as contemplated herein without the approval of the Members by providing notice of the amendment not less than 90 days before the effective date of the amendment; and WHEREAS, this Amendment shall be effective on the date (the "Effective Date ") that is the later of (i) the date on which all Capital Commitments accepted by the Company on or prior to June 30, 2015 have been called by the Fund Managers in accordance with Section 3.2 of the LLC Agreement and (ii) November 1, 2015. NOW, THEREFORE, in accordance with the authority granted Section 15.4 of the LLC Agreement, the Manager hereby amends the LLC Agreement as follows: Section 1. Defined Terms; Interpretation. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given such terms in the LLC Agreement. On and after the date hereof, any reference in the LLC Agreement to "herein ", "hereof ", "this Agreement," or words of like import, shall mean the LLC Agreement as amended hereby. Section 15.2 of the LLC Agreement is incorporated as if set forth herein. Section 2. Amendment to LLC Agreement. Effective as of the Effective Date, Section 3.2(a)(ii) of the LLC Agreement shall be amended and restated in its entirety and superseded and replaced by the following: (ii) The Fund Managers, in their sole discretion, may either (A) call the entire amount of a Fund Member's Unfunded Capital Commitment before calling any portion of a subsequently accepted Capital Commitment, or (B) call, on a pro rata basis, Unfunded Capital Commitments from Fund Members that made Capital Commitments in the same calendar quarter; provided, however, that the Fund Managers shall be required to call the entire amount of Unfunded Capital Commitments from Fund Members before, or simultaneously with, calling any portion of a Capital Commitment made by Fund Members in a subsequent calendar quarter. Notwithstanding the foregoing, the Fund Managers, in their sole discretion, may cause the Company to accept a contribution of Contributed Property from a new or existing Fund Member, and issue Fund Interests in exchange therefore, prior to calling all or any portion of any other Fund Member's Unfunded Capital Commitment. 716277355 05090204 Section 3. Effect of Amendment. Except as amended by the provisions hereof, the LLC Agreement (and each exhibit and schedule thereto) shall remain in full force and effect in accordance with its terms. Section 4. Successors. This Amendment shall inure to the benefit of and shall be binding upon the Members, their legal representatives, transferees, heirs, successors and assigns. Section 5. Applicable Law. This Amendment shall be interpreted and construed in accordance with the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof. [Signature page follows.] 2 716277355 05090204 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the day and year first above written. MANAGER: INTERCONTINENTAL REAL ESTATE CORPORATION, a Massachusetts corporation By Name: Peter P dji Title: President and Treasurer 716277355 05090204 ® ._. n>; a �� u�ix uoi�a �,a�eaxa /ctctlsa /uioa sc[�7 ctrgssnel�uGa n�nnnn / /:sctllt� sdn sdn sdn SIOZ /t /L c lnnoPuirn,�utx 1 P— . O V' • to 1-3 1.--1 , . wr ,.r w Y��1 r � r r. r : '•�`�ti � � rU • L Y• b o ° �-1 v'wY � . - 9., N i9 u� ..: w= :::: ',►•` : 0 � O Q t om • `4) I . f;J s •. •.�..r. .' Fey , N I�ti ' •r •ti r• r .' X> 6 _ 0 r ` " i' ri r .•4 ›, Immommom r o W w 0 Cla rn �+ N CO Tj w � � G� U t w '17 N r w __ C w a, $ 1*.6%41 1.4 0 0 Pll nalinarl !+ CITY OF IIOYNTON BEACH FIREFIGHTERS 1500 GIITEWAY BLVD STE 220 010:1 BOYNTOA BEACH FL 33426-8310 uiI Uoinint) Motu ,ii)d�ti;rnii j', „rle i Dili , ,,ivi 'i ,ii,, i ;oit oil A 41140.1,11,0 PJ j EN7 S: BBB 1:723 •noA s����u uoi���)ol l () s c� pm) u� rlii�l )Irl �_ ,iiI �MT N oo1a472 6139 (LL B Rl —1054 X D BS- Zlit, 008 - 1.) a,s(inwm)sd -oo i, t►i t +0 1,1/10 V i” US 3340 HIP 15.3.3 ZEBRRZH400B:09:09 2015 i ..... ,,J;V Aea P Z Sian „,ssasdx3 apIM ppoM, Sdri sly, li tt , • ee 4xaN Sdfl :SODinsas 2uinnoI�OJ. ayl ylinn asn sot si ado�anua siyl ` � s, r i IN: m 'r Ay " o 'egO * rc �i a 4 ` 4 ,,yip � . :+ 10'fi, y , n e ^ � ,, f -- , '''''' ./vwss ''I'd "r" —. u`-:W `, 41111,4E1' f s. t,.,J,L4;.2a� , ._,. "r 4 t ` ",`'* a_ ' y ' ' - .....� .e . ' Barbara Ladue From: Jim <Ibcharts @bellsouth.net> Sent: Thursday, July 02, 2015 9:59 PM To: Barbara Ladue Subject: drop funds Barb I didn't get your voice mail until this evening. My account was already debited per my request last week, I've already spent most of the $6000. The question I called you about this week was regarding whether Luke was going to sign off on the $50,000 drop loan that we talked about at the pension board meeting. I wanted you to see if he would help push it through so I could use the money to buy a new home. You had indicated that there was a window of opportunity to approve the loan process in August, the next meeting was going to be in November, which would be bad for me. Please follow up with Luke about the proposal and of course don't submit the paperwork for another withdrawal from my drop funds. Given the government it might be next year before that money would become available. Leaving for Vancouver at 5 am tomorrow. I don't know if I'll have phone service there but I should be able to receive text messages. My phone No. is 561 436 2284, you should be able to text me with that number. Thanks Jim Ness 1 Barbara Ladue From: Tim Conway <01 @l0.ccsend.com> on behalf of Tim Conway <tconway @convergex.com> Sent: Thursday, June 11, 2015 10:34 AM To: ladueb @bbpdpension.com Subject: Introduction - New Head of Convergex Recapture Services June 11, 2015 Dear Valued Client: I am writing to you today to introduce myself after recently joining Convergex as managing director and Head of Recapture Services. I have been in the industry for more than 30 years, with extensive experience in commission recapture. Most recently, I served as Global Head of Cross Selling at KCG Holdings, and prior to that was Knight's Director of Commission Management Sales. In addition, I have held senior management positions at instinet; Harborview, LLC; and Lynch, Jones & Ryan, Inc. - the predecessor company of Convergex's commission recapture business. During my 11 year tenure at LJR, I worked very closely with the former Plan Sponsor Services team, primarily as Global Head of Trading. I also worked extensively in introducing LJR's commission recapture services into the European marketplace while managing the firm's London office. AnneMarie Mace, who has been with Convergex since 2002 and has been overseeing the firm's recapture services business, has become the team's head of business development, and will continue to manage many of our primary consultant relationships. I am excited to become a part of Convergex. We look forward to growing our relationship with you, and will continue to provide the highest possible level of client service. I hope to meet with you personally in the coming months. In the meantime, if I can be of any direct assistance, please do not hesitate to contact me. Sincerely, Tim Conway Tim J. Conway Managing Director Head of Recapture Services CONVERGEX 1633 Broadway, 48th Floor New York, NY 10019 T: 212 - 237 -0416 I M: 646- 784 -3030 tconwavAconvergex.com 1 . 07/22/2015 09:05 FAX Z001 07-22-'15 12:36 FROM- T -150 P0002/0004 F -589 ALIVE AND WELL STATEMENT X i r . C " •► ' , hereby certify under penalties of perjury, X am i alive on this day of _ t) , 20 ,and lawfully receiving pension benefits C from the City of Boynton Beach, / .401 .--:' ' .[1/_ I .// / -i gnature) , Ai ..g .,, ra, t v _ 7 int Name) n- -- E 5 / C. (Atddress) - - A d ,. •. r Ca fe 773df Ci ,.t & pop ,si t�"ode)) ,5' i- 3 22 a 0 11 (Phone/Cell) State of O/2 (Email) County of, /, CO/ 2.(O UI ( � � BEFORE ME, the undersigned authority, personally appeared . , , whom is personally -known to me or has produced \ , €' ?,Ce-- as identification and who did take an oath and, after being duly cautioned and swoon deposes and .says that he /she has signed the foregoing document for the reasons therein contained, SWORN TO AND SUBSCRIBED before tie this ZZ day of -- Jut I \ , 201c ' �;� '� -'° JAM � 7) / ) / — > cxc�tr r � 4r_Z- ,, � cor►atiuss�ort N0. 936479 `� W COMMA DIVES FEIRLI4R03, X18 ( .. 1\10, public My Commission Expires: I z } iv 9 06.2015 41 1 ( 47 Ili P rill o a r tigv,,?ir e ,r() /0,-. --- 64C -. 2; (1 7- (rod VU9711 1 .) - 1 1 ) u " '''''''' S (Nlif ..e ..P i) Poe wv ( / i, I ciV 2 - --- 7 ------.. .1; '7.4 Z f - "i is;r1 62 (.1.( ft.--01/ : .x•-),- '- INVOICE DSM CAPITAL PARTNERS LLC 116 Radio Circle Drive, Suite 200, Mt. Kisco, NY 10549 Tel: (914) 242 -1900 23- Jul -15 Invoice No: 15345 Luke Henderson City of Boynton Beach Municipal Firefighters Pension Trust Fund 1500 Gateway Boulevard, Suite 220 Boynton Beach, FL 33426 Billing Period: FROM 07/01/2015 TO 09/30/2015 Account Name City of Boynton Beach Municipal Firefighters Pension Trust Fund Portfolio Value $10,768,219 Amount Due $23,315.41 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: 5,768,219 10,815.41 Total $23,315.41 To wire payment: JP Morgan Chase ABA #: 021000021 A/C Name: DSM Capital Partners LLC A/C #: 3241067005 THE BOGDAHN Invoice Date Invoice # !'.'„OUP 6/15/2015 12149 4901 Vineland Rd Suite 600 Orlando, FL 32811 Bill To Boynton Beach Firefighters' Pension Plan Attn Barbara La Due Description Amount Performance Evaluation for 3/31/15 Reports and Consulting 8,375.00 Services through 6/30/15 4/1/2015 - 6/30/2015 Balance Due $8,375.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS June 30, 2015 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 16935 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 06/30/15 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 06/05/15 DRAFTED EMAIL TO CHAIRMAN RE SB 172; CALL 0.20 60.00 TO CHAIR RE PENDING ISSUES 06/10/15 RECEIPT AND REVIEW EMAIL; REVIEW AGENDA 0.10 30.00 06/12/15 DRAFTING MEMO RE HB 1309 0.20 60.00 06/17/15 PREPARATION FOR BOARD MEETING; REVIEWED 1.00 300.00 FILE 06/18/15 ATTENDED BOARD MEETING 6.00 1,800.00 06/19/15 ANALYSIS OF DROP LOAN ISSUES; REVIEW PLAN 1.00 300.00 06/22/15 RECEIPT AND REVIEW EMAIL FROM LADUE; 0.20 60.00 REVIEW FILE 06/23/15 RECEIPT AND REVIEW EMAILS 0.20 60.00 06/24/15 RECEIPT AND REVIEW 60T DISCLOSURE; 0.20 60.00 DRAFTED EMAIL 06/29/15 RECEIPT AND REVIEW MINUTES; REVIEW FILE 0.50 150.00 Total for Services 9.60 $2,880.00 CURRENT BILL TOTAL AMOUNT DUE $ 2,880.00 GRS Gabriel, Roeder, Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Invoice Ft. Lauderdale, Florida 33301 -1804 (954) 527 -1616 Date Invoice 7/7/2015 415248 Bill To: Please Remit To: Attention: Ms. Barbara La Due Dept. # 78009 City of Boynton Beach Gabriel, Roeder, Smith & Company Municipal Firefighters Retirement Fund PO Box 78000 Renaissance Executive Suites Detroit, Michigan 48278 -0009 1500 Gateway Blvd., Suite 220 Boynton Beach, Florida 33426 Federal Tax ID 38- 1691268 Client 100560 r _ — — _ . . Amount. For professional actuarial services rendered for the Boynton Beach Municipal Firefighters Retirement Fund through 6/30/2015 Preparation for and attendance at Special Pension Board meeting held on June 18, 2015 1,680.00 Preparation of Chapter 112.664 Actuarial Compliance Report, including upload of 3,000.00 required information to the State database Amount Due $4,680 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 SALEM TRUST C O M P A N Y Boynton Beach Firefighters Penson July 10, 2015 Barbara LaDue Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 IaduebCa�bbpdpension.com Fee Advice for Period April 1, 2015 to June 30, 2015 Total Market Value for Fund: $ 72,771,705.50 Detail of Calculation: Market Value Basis Point Rate Annual Fee Quarterly Fee Total Market Value 0.0004 $ 29,108.68 $ 7,277.17 Monthly Benefit Payments 273 $ 3.00 $ 819.00 Lump Sum Payments 2 $ 15.00 $ 30.00 Invoice Payments 0 $ 10.00 $ - FEE FOR QUARTER: $ 8,126.17 TOTAL FEE DUE: $ 8,126.17 Breakdown of Fee by Account Account # Name A/C Market Value MV Fee Activity Fee Amount 3040001253 International $ 10,920,282.43 $ 1,092.03 $ - $ 1,092.03 3040037590 Receipt & Disbursement $ 207,179.51 $ 20.72 $ 849.00 $ 869.72 3040055178 Schroeder Fixed Income l $ 7,405,144.86 $ 740.51 $ - $ 740.51 3040057416 Mutual Funds $ 31,557,537.90 $ 3,155.75 $ - $ 3,155.75 3040057425 Schroeder TIPS $ 1,154,455.16 $ 115.45 $ - $ 115.45 3040060652 DSM $ 10,764,918.35 $ 1,076.49 $ - $ 1,076.49 3040062794 Anchor Capital $ 10,762,178.42 $ 1,076.22 $ - $ 1,076.22 3040062838 Manning & Napier $ 8.87 $ 0.00 $ - $ 0.00 $ 72,771,705.50 $ 7,277.17 $ 849.00 $ 8,126.17 these tees will automatically be charged to your account If you have any questions, please contact Karen Russo at (954) 426 -5770 DEERFIELD BEACH TAMPA 455 FAIRWAY DRIVE, SUITE 103, DEERFIELD BEACH, FL 33441 TEL (877) 382 -5268 FAX (954) 725 -4493 www.salemtrust.com • • INTERCONTINENTAL REAL ESTATE CORPORATION INTERCONTINENTAL 1270 SOLDIERS FIELD ROAD BOSTON, MASSACHUSETTS 02 135 -1 003 TELEPHONE 617 - 782 -2600 FACSIMILE 617 - 782-9442 www.intercontinental.net May 21, 2015 Ms. Barbara LaDue, Pension Administrator City of Boynton Beach Firefighters' Pension Fund Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 RE: U.S. Real Estate Investment Fund, LLC Dear Ms. LaDue: We are pleased to announce that U.S. Real Estate Investment Fund, LLC (US REIF) has made a distribution to you in the amount of $45,389.97 which constitutes your pro rata gross share of an overall distribution of $12,788,992.77. The Fund has withheld $8,616.81 for payment of asset management fees for the first quarter 2015, resulting in a net distribution to you of $36,773.16. As authorized by your executed Dividend Reinvestment Plan (DRIP) letter, Intercontinental has reinvested your net distribution of $36,773.16 into US REIF. Intercontinental will report the number of reinvested shares as part of the second quarter 2015 reporting. If you have any questions or wish to change your method of payment, please contact Bart Weinstein at 617 - 779 -0440. Sincerely, J ALle4 Paul J. Nasser ® 202 K v CHEVY CHASE TRUST IT INVESTMENT ADVISORS 7501 Wisconsin Avenue, Suite 1500W Bethesda, Maryland 20814 9 ,. BOYNTON BEACH FIREFIGHTERS PF TRANSACTIONS ACCOUNT: CH100363 PAGE: 5 FOR THE PERIOD 04/01/15 THROUGH 06/30/15 DATE TRANSACTION DESCRIPTION CASH COST BEGINNING BALANCES $0.00 $1,944,426.46 FEES AND EXPENSES OTHER FEES AND EXPENSES 04/15/15 INVESTMENT MANAGEMENT FEE COLLECTED 8,271.74 - BASED ON A MARKET VALUE OF $2,646,955.76 TOTAL FEES AND EXPENSES 8,271.74- 0.00 INVESTMENT ACTIVITY SECURITY TRANSACTIONS 04/15/15 PURCHASED 28.26 UNITS OF 28.26- 28.26 SEI DAILY INCOME GOV T FUND CL A #36 TRADE DATE 4/15/15 04/16/15 PURCHASED 238.37 UNITS OF 238.37- 238.37 SEI DAILY INCOME GOV T FUND CL A #36 TRADE DATE 4/16/15 04/16/15 SOLD 238.37 UNITS OF 238.37 238.37 - SEI DAILY INCOME GOV T FUND CL A #36 TRADE DATE 4/16/15 04/16/15 SOLD 7.276 UNITS OF 8,300.00 6,096.61 - ASB ALLEGIANCE REAL ESTATE FUND TRADE DATE 3/31/15 7.276 UNITS AT $1,140.7694 TOTAL SECURITY TRANSACTIONS 8,271.74 6,068.35 - TOTAL INVESTMENT ACTIVITY 8,271.74 6,068.35 ' 1328- 02 -00- 0000290- 0004- 0001610 • CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 1 REPORTING PERIOD 10/01/2014 TO 08/01/2015 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 MRS. ALLEN 02/1927 3 -A 4,464.39 49,108.2 6107 ALTMAN,RAYMOND 11/1962 01/01/13 DAWN ALTMAN 10/1953 3 -A 3,609.89 39,708.7 0637 ANDERSON,ROBERT 12/1960 05/01/09 00 /0000 1 7,280.26 80,082.8 9555 BELL,DANIEL 10/1955 01/01/98 RONNA R. BELL- DECEASED 06/1954 3 -A 3,216.33 35,379.6. 7547 BINGHAM,WILLIAM 12/1953 10/01/09 AISHAH ABDUL AZIZ 04/1964 3 -D 4,518.95 49,708.4. 4242 BONOMINI,JAMES 02/1955 01/01/98 PATRICIA BONOMINI 12/1952 3 -A 2,913.58 32,049.3. 0362 BORDEN,BOBBY 02/1950 06/01/04 FREDA BORDEN 10/1949 2 8,611.80 94,729.8 1533 BROWN,ROBERT 03/1949 02/01/00 00 /0000 1 4,076.38 44,840.1: 0316 CAMPBELL,STEVEN 04/1949 06/01/97 JOAN CAMPBELL 12/1949 3 -A 2,384.98 26,234.7. 7839 CAUGHEY,GAYLE 08/1958 08/01/05 GARY CAUGHEY 10/1959 3 -A 1,587.13 17,458.4. 2595 CAVANAUGH,WILLIAM 10/1943 01/01/98 ALISON CAVANAUGH 12/1963 1 3,458.01 38,038.1 1622 CROCKETT,DAVID 04/1936 11/01/91 PEGGY CROCKETT 09/1934 3 -A 579.23 6,371.5. 9654 CROFT,BRYAN 01/1964 02/01/07 BRENDA CROFT 08/1964 1 831.05 9,141.5. 8948 CROFT,ROBERT 01/1961 07/01/04 CHRISTINE CROFT 03/1962 2 4,508.53 49,593.8. 3953 DEMARCO,JOSEPH 08/1950 12/01/97 DANA DEMARCO 10/1947 3 -A 3,205.02 35,255.2. 9036 DOLPHIN,ANTHONY 03/1947 04/01/01 PATRICIA DOLPHIN 01/1947 3 -B 3,476.21 38,238.3 2671 DUNKELMANN,WILLIAM 10/1941 07/01/95 LYNNE MCKIRDY 07/1951 2 3,103.59 34,139.4 5135 DYPOLD,DEBRA 05/1952 06/01/02 00 /0000 2 2,796.14 2,796.1 2513 EBERLY,DEAN 04/1961 07/01/04 CHRISTINE EBERLY 01/1968 2 4,084.58 44,930.3: 1267 EHMKE,BARRY 07/1955 04/01/01 00 /0000 2 3,368.39 37,052.2 8000 ESTEVES,EDWIN 04/1953 06/01/04 DIANE S ESTEVES 08/1952 3 -A 3,773.22 41,505.4: 3427 FITZPATRICK,MICHAEL 06/1953 10/01/10 LISA HANLEY 09/1950 3 -A 6,232.97 68,562.6' 6726 FLUSHING,DENNIS 09/1952 10/01/02 MARY KATHLEEN 02/1957 3 -A 6,185.85 68,044.3 5090 GALE,STEVEN 07/1950 05/01/04 PAMELA GALE 07/1951 3 -A 10,221.46 112,436.0 2249 GARCIA,LUIS 05/1966 03/01/13 DAWN ROMEO GARCIA 10/1970 1 4,294.16 47,235.7 7946 GULBRANDSEN,WILLIAM 03/1956 02/01/01 JILL C. GULBRANDSEN 08/1957 2 4,231.13 46,542.4. 0453 HAGG,DIANE 11/1956 02/01/09 00 /0000 2 3,242.06 35,662.6 8232 HAGG,WALTER 07/1953 10/01/02 DIANE SOUCY 11/1956 3 -A 5,863.16 64,494.7 1678 HERIG,JAMES 05/1945 01/01/98 KATHLEEN HERIG 05/1950 3 -A 3,047.04 33,517.4 9190 HERNANDEZ,DEREK 10/1962 12/01/06 CAROLYN ALLAN 06/1967 1 3,994.16 43,935.7 8208 JUTE,RANDALL 04/1958 07/01/04 CAROL JUTE 07/1955 2 4,285.55 47,141.0. 8911 KAMIYA,HENRY 04/1944 01/01/98 00 /0000 2 5,266.84 57,935.2 7037 KEEFE,MICHAEL 08/1949 01/01/98 CLARA ANN BOWLBY(MOM) 4 03/1928 3 -D 4,282.53 47,107.8. 3307 KEISTER,RONALD 05/1953 10 /01 /10 KATHERINE KEISTER 01/1957 3 -A 9,682.07 106,502.7' • CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 2 REPORTING PERIOD 10/01/2014 TO 08/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 3063 KIGHT,LUDDY 01/1942 01/01/98 SANDRA KIGHT 03/1945 3 -D 4,925.10 54,176.1 7245 KINBACHER,JEFFREY 05/1950 04/01/09 LINDA KINBACHER 03/1949 3 -A 3,164.69 .0 5513 KIRCHEN,ALAN 01/1956 10/01/01 00 /0000 1 2,975.73 32,733.0. 4840 KNIGHT,KEITH 08/1957 08/01/05 00 /0000 1 1,434.05 15,774.5. 4746 LAMBERT,PAUL 08/1956 04/01/01 00 /0000 2 4,034.11 44,375.2 6246 LEAMON,EDWARD 08/1958 10/01/05 KAREN LEAMON 07/1959 2 4,975.05 54,725.5. 5297 LIMAURO,RICHARD 04/1960 07/01/04 DRU LIMAURO 05/1966 2 6,064.49 66,709.3 0505 LIU,DAVID 11/1963 07/01/04 PHILIP LIU(DAD) 4 -1 -201 04/1931 3 -D 7,373.85 81,112.3. 3441 LOWERY,JOHN 01/1953 08/01/93 JERILYN C. LOWERY, WIFE 01/1958 3 -A 600.92 6,610.1. 9342 MACALPINE,JAIME 04/1979 07/01/24 CHRIS MACALPINE 04/1968 3 -A 1,907.87 .0 1414 MACRAE,THOMAS 03/1954 04/01/01 DIXIE MACRAE 09/1954 3 -D 3,152.55 34,678.0. 5106 MADIGAN,DOUGLAS 09/1953 03/01/97 LAURIE MADIGAN 02/1961 3 -B 3,028.08 33,308.8' 3481 MARTIN MILKINS,CRYS 11/1963 02/01/09 LARRY MILKINS 01/1955 3 -D 4,750.84 52,259.2 9949 MARTIN,JOHN 06/1948 07/01/96 SHARON MARTIN 03/1950 3 -A 3,118.47 34,303.1' 2833 MCCONNELL,WILLIAM 08/1958 07/01/02 00 /0000 1 1,318.30 14,501.3 7801 MITCHELL,F. 10/1927 08/01/85 BLANCHE GEIST, SISTER 00 /0000 1 1,475.68 16,232.4 4289 MORMAN,TIMOTHY 07/1951 03/01/02 SUSAN MORMAN /DECEASED 1 04/1959 2 7,202.62 79,228.8. 8524 NESS,JAMES 02/1949 10/01/03 BARBARA L NESS 10/1959 3 -B 5,650.56 62,156.1 1780 NEWELL,DEAN 05/1949 10/01/02 PATRICIA ANNE NEWELL 11/1952 3 -A 3,823.51 42,058.6 0868 NEWMAN,ALLEN 11/1962 02/01/11 LISA P. NEWMAN 03/1968 3 -C 5,075.49 55,830.3 7918 OVERBY,KENNETH 12/1956 01/01/98 KATHERINE OVERBY 09/1956 3 -B 3,701.17 40,712.8' 1627 OXENDINE,PHILIP 01/1953 07/01/00 MICHELE OXENDINE 02/1954 3 -B 3,844.77 42,292.4' 9772 PATTERSON,PERRY 12/1950 02/01/96 MRS. PATTERSON 12/1953 1 3,013.69 33,150.5 6787 PICKLESIMER,ALAN 11/1955 01/01/98 DEBRA PICKLESIMER 09/1954 3 -A 2,486.47 27,351.1' 1006 PLAYNE,MATTHEW 09/1957 07/01/04 GERALYN PLAYNE 02/1959 3 -A 5,320.21 58,522.3 8458 PODRAY,ANDREW 09/1952 04/01/01 ROZANNA PODRAY 03/1952 3 -D 4,052.13 44,573.4. 5607 PORTER,CHARLENE 09/1928 08/01/93 00 /0000 4 -B 541.30 .0. 8401 QUINN,KEVIN 04/1957 10/01/04 JEANNIE KASMER QUINN 06/1957 2 6,068.69 66,755.5 4065 RAHRIG,GILBERT 04/1939 05/01/95 WIFE - BARBARA 00 /0000 2 3,088.93 33,978.2. 8312 REHR,ELIZABETH 04/1968 02/01/11 BOB REHR 04/1966 1 4,313.36 47,446.9 3899 REITZ,THOMAS 07/1959 10/01/05 00 /0000 2 4,758.38 52,342.1: 6678 RHODEN JR.,JAMES 07/1955 01/01/98 00 /0000 1 4,234.24 46,576.6 0134 ROTHROCK,EDWARD 03/1950 04/01/01 00 /0000 2 3,673.44 40,407.8 4097 RUDY,RONALD 05/1966 07/01/10 KAREN RUDY 05/1967 3 -A 8,274.43 57,921.0 9949 SEARS,ROBERT 10/1951 02/01/01 PATTI SEARS 01/1956 3 -B 3,118.12 34,299.3. CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM FIREFIGHTERS' PENSION DATA PAGE 3 REPORTING PERIOD 10/01/2014 TO 08/01/2015 Social Names Date of Date of Benef. Total Security Birth Retire/ Disability Birth Pens. Monthly Received Number Last, First, I. Disab. Code Name of Beneficiary Date Opt. Pension This Yr 6451 SEIDER,GREGG 04/1956 05/01/06 LAWREN SEIDER 12/1960 3 -A 923.39 10,157.2 2403 SHEMWICK,THOMAS 04/1942 05/01/96 GAYLE SHEMWICK 07/1941 3 -A 3,401.90 37,420.9 5020 SIMPSON,GEOFFREY 05/1960 12/01/06 JEAN SIMPSON 10/1955 3 -B 6,357.70 69,934.7 8086 SMOLLON,MICHAEL 08/1951 07/01/02 00 /0000 2 5,585.29 61,438.1 9257 SNOW,MARK 12/1952 04/01/01 CATHERINE SNOW 12/1955 3 -A 3,436.19 37,798.0 7188 STARKOSKI,SHAWN 04/1951 08/01/00 MARGARET STARKOSKI 04/1946 3 -B 4,073.29 44,806.1 8763 THYNG,BRADLEY 05/1964 03/01/09 00 /0000 2 6,886.22 75,748.4. 8386 TRACY,BRENTON 08/1968 09/01/19 KERSTIN TRACY 06/1966 3 -A 2,980.89 .0 8477 VALENTINE,TIMOTHY 10/1958 07/01/04 DANA VALENTINE 06/1965 3 -A 7,000.34 77,003.7 1196 VICKI,RODNEY 01/1954 01/01/98 SHARON GOLDEN VICKI 02/1952 3 -D 3,145.81 34,603.9 8790 WITT,JAMES 01/1962 09/01/10 JOYCE WITT 11/1939 1 8,945.38 .0 6344 WOZNICK,MARK 09/1951 07/01/04 00 /0000 2 4,697.97 51,677.6' Total Retirement 3,493,174.75 DISABILITY 0849 WANDELL,ERIC 06/1965 11/01/07 LOD ROSEANNE WANDELL 09/1972 3 -A 3,413.60 37,549.6 Disability 37,549.60 BENEFICIARY 7853 DUFFY,CAROLYN 04/1942 4 -A 1,307.88 14,386.6 7944 KINBACHER,LINDA 03/1949 3 -A 3,227.98 35,507.7 7680 KNUTH,GLADYS 07/1937 3 -A 1,209.79 13,307.6 9568 EUTIN,ARLEEN 09/1963 1 2,494.55 27,440.0. 8640 MANNING,ALICE 07/1928 3 -A 1,345.18 14,796.9: 9653 RICHARDSON,MARTHA 06/1941 3 -D 1,908.78 20,996.5: 2829 SISKO,ANNA 01/1941 3 -A 2,434.05 26,774.5. 9298 WOJCIECHOWSKI,CECIL 02/1960 3 -A 4,810.33 52,913.6. Death 206,123.94 NUMBER OF RETIRED EMPLOYEES ON THIS REPORT: 82 TOTAL PENSION PAYMENTS 3,736,848.29 BOYNTON BEACH FIREFIGHTERS' PENSION FUND Scheduled 2016 Quarterly Board Meetings February 3, 2016, Wednesday, @ 9:00 AM May 4, 2016, Wednesday, @ 9:00 AM August 3, 2016, Wednesday, @ 9:00 AM November 2, 2016, Wednesday, @ 9:00 AM (Meeting dates on 1 st Wednesday of the Month Subject to Change) Meeting Location: Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 May 26, 2015 i 1 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN J -- SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES I Years ended September 30, 2012 and 2011 2012 2011 Investment Administrative Investment Administrative ri Expenses Expenses Expenses Expenses Expenses: ri Actuary fees $ - $ 6,471 $ - $ 22,143 Administrator's fees - 21,910 - 20,442 Audit fees - 13,200 - 9,200 9 Bank charges - 23 - - Computer supplies - 6,373 - 5,549 GI Custodial fees 20,907 - 23,237 - Directors' liability insurance 7,805 7,905 DROP Administration 2,000 - 2,000 - 1 9 Dues and subscriptions - 600 - 600 Investment managers' fees: STW 34,626 - 39,063 DGHM 49,491 48,274 - Anchor Capital 41,870 - 38,923 - DSM Capital 55,615 - 53,411 - Rigel Capital - - - - 9 Atalanta 22,192 - 21,605 32,958 - 15,60 Legal fees 15,600 Office expenses - 1,140 - 704 Office rent - 7,045 - 6,371 Pension program maintenance - 1,833 - 1,546 Performance monitor 33,500 - 33,500 - Li Seminars and training - 2,688 - 5,475 Awards reception - 1,200 - 1,200 L I $ 260,201 $ 91,893 $ 271,366 $ 96,735 LI Percentage of plan net assets 0,43% 0.15% 0,54% 0.19% 9 Li r1 24 1i i CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES Years ended September 30, 2014 and 2013 2014 2013 Investment Administrative Investment Administrative Expenses Expenses Expenses Expenses Expenses: Actuary fees $ - $ 27,054 $ - $ 20,735 Administrator's fees - 27,393 - 26,089 Audit fees - 11,000 - 10,500 Bank charges - 402 - 346 Computer supplies - 5,581 - 7,089 Custodial fees 39,836 - 34,514 - Directors' liability insurance - 9,063 - 7,981 DROP Administration 2,500 - 1,500 - Dues and subscriptions - 600 - 600 Investment managers' fees: ASB Allegiance 15,737 - 26,369 - STW 7,628 - 16,032 - DGHM - - 39,823 - Anchor Capital 45,357 - 48,663 - DSM Capital 98,733 - 64,684 - Schroder 32,329 - 15,537 - Legal fees - 18,173 - 8,070 Office expenses - 809 - 564 Office rent - 6,960 - 6,332 Pension program maintenance - 2,769 - 3,656 Performance monitor 33,500 - 33,500 - Seminars and training - 12,586 - 6,619 $ 275,620 $ 122,390 $ 280.622 $ 98,581 Percentage of plan net position 0,35% 0.16% 0,40% 0.14% 29 City of Boynton Beach Firefighters' Retirement System Investment Performance Review 2nd Quarter 2015 vlorn THE BOGDAHN GROUP. W W W. B O G DA H N G RO U P. C O M sinipli[i•in, our investment and fiduciary decisions 2nd Quarter 2015 Market Environment F ^ THE 1 I ( ` BOGDAHN GROUP ______] i u anasllid 1 aa3lnurnityN 1 ° I �i� puulanalD 1 o2 uaiiJ The Market Environment Major Market Index Performance As of June 30, 2015 • Investment returns during the second quarter of 2015 were flat to Quarter Performance modestly positive for equity and negative for fixed income indices. MSCI ACWxUS 0 5% Domestically, macroeconomic data was mixed throughout the MSCI EAFE 0.6% quarter as improvements in unemployment rate, retail sales, and MSCI Emerg Mkts 1 0.7% consumer confidence were offset by a negative first quarter gross S &P 500 . 0.3% - domestic product (GDP), a strong dollar, and slowing corporate Russell 3000 0.1 °r° earnings. The majority of the quarter played out as a low- volatility, Russell 1000 a l 0.1% upward- trending market; however, as the quarter came to a close, Russell MidCap -1.5% I geopolitical concerns regarding Greece's default on a $1.7B Russell2000 10.4 °r° payment to the IMF took center stage. This uncertainty sent ripples throughout the financial markets and risk assets sold off. Barclays US Agg - 1.7°r° Barclays US Govt -1.5% • • While the S &P 500 reached new highs during the quarter, as noted, Barclays US TIPS -1.1% I performance for the quarter was muted. At the index level, small Barclays MBS -0.7% cap companies outperformed large cap companies for the third Barclays Corp IG 3.2 °r° consecutive quarter, but mid cap companies underperformed and - 3-Month T -Bill 0.0% posted negative absolute returns for the period. -4.0% -2.0% 0.0% 2.0% • Non -U.S. equity indices provided the strongest returns during the 1 - Year Performance quarter in U.S. dollar (USD) terms but continued to lag their MSCI ACWxUS -5.3% domestic counterparts for the trailing one -year period. In a reversal MSCI EAFE -4.2% 1 of recent trends, the U.S. dollar (USD) depreciated approximately MSCI Emerg Mkts -5.1% I 4.0% versus the euro during the quarter. S &P 500 MMII 7.4% • An improving domestic economy fueled speculation that the Russell 3000 1 7.3% Federal Reserve (Fed) would, by the end of 2015, move to increase Russell 1000 - 1 7.4% short-term interest rates for the first time in almost a decade. As a Russell MidCap I 6.6% - result, interest rates increased during the quarter, leading to poor Russell 2000 1 6.5°r° performance across fixed income indices. The impact of rising rates was felt more prominently at the long end of the yield curve, Barclays US Agg 1.9% Barclays US Govt I 2.3% which "steepened" the 2 to 30 year spread by 49 basis point (bps). Barclays US TIPS -1.7% 1 As a result, performance of longer -date issues suffered more than Barclays MBS 1 2.3% short maturities. For corporate bonds, an influx of new issues Barclays Corp IG .. 1 0.8% caused spreads to widen relative to Treasuries, resulting in weaker performance for corporate bonds relative to U.S. government 3 -Month T -Bill 0.0% issues. -7.0% -5.0% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% Source: Investment Metrics . THE i g-a. 2 BOGDAHN L agairmamilli"miii------------'- -‘ _ ._ _ . The Market Environment Domestic Equity Style Index Performance As of June 30, 2015 • Performance in domestic equity indices was muted for the quarter Quarter Performance - Russell Style Series as solid gains realized during April and May were largely given back 3000 Value 0.0% during the latter half of June on headline geopolitical concerns. The 3000 Index 0.1% Russell 1000 and 3000 indices all finished modestly positive, with 3000 Growth . 0.3% little differentiation between growth, value, and core styles. The Russell 1000 index series each returned 0.1% for the quarter while 1000 Value I 0.1% the Russell 3000 Growth Index outpaced its value counterpart by 1000 Index i 0.1% 0.2 %. 1000 Growth 0.1% • Outside of geopolitical factors impacting equity performance, there MidCap Value -2.0% were two notable trends in U.S. domestic equities in the second MidCap Index 1.5% quarter of 2015. First, mid cap indices underperformed large and MidCap Growth 1.1% small cap indices. This trend was somewhat unusual since mid cap stocks tend to have performance between their large cap and small 2000 Value 1.2% cap peers. Second, growth stocks outperformed value stocks 2000 Index o.a °i° across the capitalization spectrum. 2000 Growth 2.0% • Based on 20 -year average P/E ratios, the current P/E for the large -3.0% -1.0% 1.0% 3.0% cap core and small cap growth indices were roughly in -line with 1 - Year Performance - Russell Style Series long -term averages. For value indices, current valuations appeared 3000 Value 3.9% extended. Similar to value, the small and mid cap core indices were 3000 Index 7.3% also elevated relative to 20 -year averages. In contrast, current P/E 3000 Growth 10.7% valuations in large and mid cap growth stocks were below their long -term averages. Large cap growth stocks, in particular, 1000 Value 11111.111111111111.1 4.1% appeared undervalued at just 88% of the long -term P/E average. 1000 Index 7.4% • On a trailing one -year basis, growth indices showed a substantial loon Growth 10 6% return premium over value benchmarks across the capitalization spectrum. MidCap Value 3.7% MidCap Index 6.6% MidCap Growth 9.5% 2000 Value .. 0.8% 2000 Index 6.5% 2000 Growth 12,3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Source: Investment Metrics THE. 3 ( BOGDAHN N. GROUP. 0 1 ><r Inaslli 1 xnuMii 1 lio.113Q Puu13^31D I o uoicij The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2015 • Sector performance was split for large cap stocks with five of the Russell 1000 ( •Quarter 01 -Yearl ten GICS sectors posting positive returns and five falling into Consumer Disc (13.0 %) ■ 1.5% negative territory for the quarter. Health care again posted the 115.2°r° strongest sector result for the quarter as well as for the year with Consumer Staples (8.8 % ) -1.7% ■ 1 9.6% returns of 3.1% and 25.8% respectively. In contrast, utilities posted ° • P y� p Energy (7.7 %) I -2.0% the weakest performance for the quarter with a return of -6.3% and 23.1% ° second weakest performance for the trailing one -year period with a Financials (17.0 %) 1 z/° J 92% return of -6.9 %. The energy sector continued to falter with a return I. 3.1% 25.8% Health Care (14.4%) 1 of -2.0% for the quarter and a staggering -23.1% for the one -year trailing period Industrials (10.9 %) -2.6% 1 1.9% Info Technology (19.4 %) 0.1% • Similar to large cap, small cap performance for both the quarter and 1 11.0% j year was led by the health care sector with returns of 5.9% and Materials (3.6 %) 0.6% -1.5% 35.6% respectively. Information technology also posted strong [ relative performance, returning 2.1% for the quarter and 12.9% for Telecom Services (2.1 % ) 1.7% i° the one -year period. Seven of the ten GICS sectors within small Utilities (3.0 %) -6.2% - 4.1°/� cap equities were negative during the second quarter with utilities , ( -6.9 %) and materials ( -4.6 %) reporting the weakest performance. 25.o °io 15.o °i° 5.0°i° 5.0% 15.0% 25.0% While the materials ( -8.5 %) and industrials ( -1.0 %) sectors were Russell 2000 •Quarter 01 -Year also negative on a one -year basis, the energy sector represents the -0.1% Consumer Disc (13.8 %) 0./° 1 real standout with a trailing one -year return of - 46.2 %. The same 1 9.7 °r0 five sectors driving performance in the Russell 1000 Index (health Consumer Staples (3.1 %) 1.4°r° 1 7.7% care, information technology, consumer discretionary, consumer ° Energy (3.6 %) 1.2/0 staples, and financials) were also major contributors to the Russell -46.2% o 2000's one -year performance. Financials (23.6 %) o s / ° 1 81% • Using the S &P 500 as a proxy, based on trailing P /E, four sectors Health Care (15.7 %) 5.9% 35.6% had valuations lower than their 20 -year averages, one sector is Industrials (13.5 %) -2 2% 1 fairly valued, and five sectors had valuations above their 20 -year -1.0% average. The information technology and energy sectors were the Info Technology (18.0 %) 2.1% 1 12.9% most undervalued versus historical data, while telecom services Materials (4.4 %) -4.6% and utilities were the most overvalued based on their long -term -6.5% average P/E ratios. Telecom Services (0.8 %) 0.3 °r° 0.4% Utilities (3.5 %) -6.9°/o -0.8% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Source: Morningstar Direct THE ,,_ 4 ir BOGDANN The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2015 Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Weight 1 -Qtr 1 -Year Sector Russell 2000 Weight 1 -Qtr 1 -Year Sector Return Return Return Return Apple Inc 3.44% 1.2% 37.3% Information Technology Team Health Holdings Inc 0.25% 1 1.7% 30.8% Health Care Microsoft Corp 1.70% 9.3% 8.7% Information Technology Manhattan Associates Inc 0.23% 17.9% 73.3% Information Technology Exxon Mobil Corporation 1.66% -1.3% -14.8% Energy Cepheid 0.23% 7.5% 27.6% Health Care Johnson & Johnson 1.29% -2.4% -4.2% Health Care Tyler Technologies Inc 0.23% 7.3% 41.8% Information Technology General Electric Co 1.28% 8.0% 4.7% Industrials Maximus Inc 0.23% -1.5% 53.3% Information Technology Wells Fargo & Co 1.25% 4.1% 9.9% Financials Investors Bancorp Inc 0.23% 5.4% 13.6% Financials Berkshire Hathaway Inc Class B 1.21% -5.7% 7.5% Financials Healthsouth Corp 0.22% 4.3% 31.0% Health Care JPMorgan Chase & Co 1.20% 12.6% 20.8% Financials West Pharmaceutical Services Inc 0.22% -3.3% 38.9% Health Care Procter & Gamble Co 1.01% -3.7% 2.7% Consumer Staples Neurocrine Biosciences Inc 0.22% 20.3% 221.9% Health Care Pfizer Inc 0.98% -2.8% 16.9% Health Care Prosperity Bancshares, Inc. 0.21% 10.5% -6.0% Financials Top 10 Performing Stocks (by Quarter) Top 10 Performing Stocks (by Quarter) Russell 1000 Weight 1 -Qtr 1 -Year Sector Russell 2000 Weight 1 -Qtr 1 -Year Sector g Return Return g Return Return Netflix Inc 0.19% 57.7% 49.1% Consumer Discretionary Harvest Natural Resources Inc 0.00% 291.5% - 64.9% Energy Skechers USA Inc 0.02% 52.7% 140.2% Consumer Discretionary Altisource Portfolio Solutions SA 0.02% 139.2% -73.1% Financials Tesla Motors Inc 0.12% 42.1% 11.7% Consumer Discretionary Natural Health Trends Corp 0.02% 131.8% 521.1% Consumer Staples Golar LNG Ltd 0.02% 42.0% -18.9% Energy Oncothyreon Inc 0.02% 129.4% 15.4% Health Care bluebird bio Inc 0.03% 39.4% 336.5% Health Care Sarepta Therapeutics Inc 0.07% 129.1% 2.1% Health Care Seattle Genetics Inc 0.02% 36.9% 26.5% Health Care TCP International Holdings Ltd 0.00% 128.8% -59.0% Industrials HCC Insurance Holdings Inc 0.04% 36.1% 60.3% Financials Alliance One International Inc 0.00% 117.4% -4.4% Consumer Staples KBR Inc 0.01% 35.1% - 16.8% Industrials Heron Therapeutics Inc 0.04% 114.2% 152.9% Health Care Coty Inc Class A 0.01% 31.7% 88.9% Consumer Staples Affimed NV 0.01% 113.8% N/A Health Care Cablevision Systems Corp Class A 0.02% 31.6% 39.9% Consumer Discretionary Corium International Inc 0.01% 109.0% 76.2% Health Care Bottom 10 Performing Stocks (by Quarter) Bottom 10 Performing Stocks (by Quarter) Russell1000 Weight 1 -Qtr 1 -Year Sector Russell 2000 Weight 1 -Qtr 1 -Year Sector Return Return Return Return Peabody Energy Corp 0.00% -55.5% - 86.4% Energy American Eagle Energy Corp 0.00% - 90.6% - 99.7% Energy SandRidge Energy Inc 0.00% -50.7% -87.7% Energy Dex Media Inc 0.00% -82.6% - 93.4% Consumer Discretionary Puma Biotechnology Inc 0.01% - 50.6% 76.9% Health Care Molycorp Inc 0.00% - 76.5% -96.5% Materials Windstream Holdings, Inc. 0.00% -43.8% -54.5% Telecommunication Services Education Management Corp 0.00% -75.0% -96.4% Consumer Discretionary Michael Kors Holdings Ltd 0.04% -36.0% -52.5% Consumer Discretionary Emerald Oil Inc 0.00% -71.3% -97.2% Energy Kate Spade & Co 0.01% -35.5% -43.5% Consumer Discretionary Noranda Aluminum Holding Corp 0.00% -71.3% -75.6% Materials Sears Holdings Corp 0.00% -35.5% -29.0% Consumer Discretionary Alpha Natural Resources Inc 0.00% - 69.8% - 91.9% Energy MBIA Inc 0.00% -35.4% -45.6% Financials Ampio Pharmaceuticals Inc 0.00% -68.5% -71.6% Health Care Stratasys Ltd 0.00% -33.8% -69.3% Information Technology Eleven Biotherapeutics Inc 0.00% -68.4% -78.6% Health Care Nationstar Mortgage Holdings Inc 0.00% -32.2% -53.7% Financials Arch Coal Inc 0.00% - 66.0% -90.7% Energy Source Morningstar Direct THE 5 BOGDAHN L GROUP. 1 rr R- i11t7 S11i,i 1 aaNnunnjtyAl 1 lto.113a puul3A31J I 02-e3iuj The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2015 I • The return pattern for international stocks during the quarter was Quarter Performance I ■ USD ❑Local Currency very similar to their domestic counterparts. The second quarter AC World x US (45) _ 0.5% started off strong with the MSCI EAFE Index up over 4.0% during 1.3 °r° the month of April. Markets then took a breather in May and finally WORLD x US (22) 0.5% -1.9% reversed course into the end of June on the negative momentum 1 0.6% brought on by geopolitical events in Greece. While the broad EAFE (21) -1.8% international equity indices ended the quarter in positive territory in Europe & ME (16) I 0.3% USD terms, the local currency performance for these same indices 3.9°ro was negative as dollar weakness against major index components Pacific (5) 1.1% 2.3% was a tailwind to USD returns for the quarter. The yen was the only 0.7% major currency that depreciated versus the USD for the quarter. Emerging Mkt (23) 0.7% o EM EMEA (10) • 1.9% Japan (3.1%) was one of the strongest performing developed 1.2% markets during the quarter (the Nikkei 225 reached an 18 -year EM Asia (8) -0.2% L high) thanks to continued aggressive central bank policies, strong 0.1 0r0 corporate earnings, and GDP growth. In contrast, Australia ( -6.2 %) EM Latin Amer (5) 3.5% IIIIIMIIM and New Zealand (-13.1%) were two of the worst - performing . developed markets. -4.0% -2.0% 0.0% 2.0% 4.0% 1 -Year Performance I ■ USD ❑Local Currency I • Equity returns in emerging countries fell across a broad 5.3°r° performance spectrum of more the 25.0% with top performing AC World x US (45 I 9.6% Hungary returning 11.0% and bottom performing Indonesia WORLD X US (22) -5.3% returning - 14.1 %. Within GICS sectors, higher energy prices 1 10.5% boosted equity returns in exporting countries like Brazil (7.0 %) and EAFE (21) -4.2% 11.8% Russia (7.6 %) during the second quarter but were a drag on returns o Europe & ME (16) - 7.5% for heavy importers like India (-3.6%). Stocks in Lat A mer i ca p 71% rebounded strongly after being the worst - performing region during 111111 2.7% 21.6% Pacific (5) the first quarter. EM Asia was the only region that failed to post I positive returns in USD terms for the period. Emerging Mkt (23) -5.1% 4 6.2% EM EMEA (10) -14.2% 5.2% EM Asia (8) 3.1% I 8.4% EM Latin Amer (5) - 23.4% 0.3% -24.0% -16.0% -8.0% 0.0% 8.0% 16.0% 24.0% Source: MSCI Global Index Monitor (Returns are Net) TH F. �� \ Il� r.r�w rm,r IMMINEMIlt N.447....- GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail As of June 30, 2015 MSCI - EAFE Sector Weight Quarter Return 1 -Year Retum MSCI -EAFE MSCI- ACWIxUS Quarter 1- Year 13.2% 0.1% 2.2% Country Weight Weight Retum Return Consumer Discretionary Japan 22.9% 16.4% 3.1% 8.3% Consumer Staples 10.9% 0.3% -3.9% United Kingdom 20.3% 14.5% 3.0% -8.2% Energy 5.2% 2.3% -30.1% France 9.7% 6.9% 0.3% -9.6% Switzerland 9.2% 6.6% 1.0% -1.2% Financials 26.2% 1.7% -1.5% Germany 8.9% 6.4% _ -5.6% -9.5% Health Care 11.2% -1.5% 2.6% Australia 6.9% 4.9% -6.2% -14.2% Spain 3.5% 2.5% -2.1% -17.3% Industrials 12.7% 0.2% -4.6% Hong Kong 3.3% 2.3% 5.6% 12.4% Information Technology 4.7% -1.1% 4.6% Sweden 2.9% 2.1% -3.0% -7.2% Materials 7.4% 0.9% -12.1% Netherlands 2.8% 2.0% 2.8% 2.5% Italy 2.4% 1.7% 2.5% - 13.5% 5.1% Telecommunication Services 4.9% 4.8% 1.3% Denmark 1.7% 1.2% 2.4% Utilities 3.6% 1.6% -12.2% Singapore 1.4% 1.0% -0.1% -3.6% Total 100.0% 0.6% -4.2% Belgium 1.3% 0.9% 1.0% 3.7% Finland 0.8% 0.6% -3.9% -6.3% Weight Quarter Return 1 -Year Return Norway 0.6% 0.5% 3.3% -26.6% MSCI - ACWIxUS Sector Wei g Israel 0.6% 0.4% -1.5% 8.8% Consumer Discretionary 11.8% -0.4% 0.7% Ireland 0.4% 0.3% 8.5% 10.8% Consumer Staples 9.9% 0.7% -3.3% Austria 0.2% 0.1% 3.2% -22.7% Portugal 0.2% 0.1% 2.0% - 36.8% Energy 7.0% 2.4% -29.4% New Zealand 0.1% 0.1% -13.1% -20.3% Financials 27.8% 1.9% -1.6% Total EAFE Countries 100.0% 71.5% 0.6% -4.2% Health Care 9.0% -1.1% 5.1% Canada 6.7% -0.9% -15.3% Total Developed Countries 78.1% 0.5% -5.3% Industrials 11.0% -0.2% -5.2% China 5.4% 6.0% 24.6% Information Technology 7.5% -2.7% 1.6% Korea 3.1% -3.7% - 14.2% Materials 7.5% -0.7% - 15.8% Taiwan 2.8% 1.0% 3.0% South Africa 1.7% -0.7% -1.5% Telecommunication Services 5.2% 3.4% 0.7% India 1.7% -3.6% 3.3% Utilities 3.4% 0.9% -12.5% Brazil 1.7% 7.0% -29.0% Mexico 1.0% 0.3% - 11.9% Total 100.0% 0.5% -5.3% Russia 0.8% 7.6% -27.6% Malaysia 0.7% -7.9% -21.5% MSCI - Emerging Mkt Sector Weight Quarter Return 1 -Year Return Indonesia 0.5% - 14.1% -8.5% Consumer Discretionary 9.0% -3.2% -8.3% Thailand 0.5% -3.4% -0.4% Consumer Staples 8.1 % 2.3% -3.3°/0 Poland 0.3% -0.9% -19.4% p Turkey 0.3% 0.8% -16.5% Energy 8.4% 8.5% - 22.6% Philippines 0.3% -5.0% 9.4% Financials 29.8% 2.9% 2.9% Chile 0.3% -3.6% -15.9% Qatar 0.2% -0.8% 2.9% Health Care 2.5% -4.0% 11.4% United Arab Emirates 0.2% 10.7% 1.0% Industrials 6.9% 1.1% -5.1% Colombia 0.1% 3.5% -40.8% Information Technology 17.9% -4.0% -0.9% Peru 0.1% 0.8% 7.5% Greece OA% 5.2% - 57.7% Materials 6.9% 1.3% - 20.3% Hungary 0.1% 11.0% -3.8% Telecommunication Services 7.3% 0.1% 0.3% Czech Republic 0.0% 1.7% -13.5% Utilities 3.3% -0.3% -12.8% Egypt 0.0% -6.1% 11.5% Total Emerging Countries 21.9% 0.7% 5.1% Total 100.0% 0.7% -5.1% Total ACWIxUS Countries 100.0% 0.5% -5.3% Source: MSCI Global Index Monitor (Returns are Net in USD) THE. 7 -- BOGDAHN GROUP The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance (Duration) As of June 30, 2015 • Fixed income performance was weak for the second quarter as Quarter Performance all segments within the broad market index posted negative AAA (5.1) -1.2% returns during the period except for high yield which was flat. AA (5.7) -1.9% ,., Much of the poor performance can be attributed to the market's A (6.9) -3.0% , .. „ _°,;„,,,. =;y' a -.;w concern of increasingly imminent Fed action to raise short-term Baa (7.5) -3.2% interest rates. U.S. High Yield (4.4) 0.0% U.S. Treasury (5.6) g • The disproportionately poor performance in the corporate credit 1.6% s, space was largely the result of two factors. First, geopolitical U.S. Mortgage (4.6) -0 7% concerns, as they often do, led to an overall "de- risking" in bond U.S. Corporate IG (7.1) -3.2% markets as investors flocked to the relative safety of U.S. U.S. TIPS (6.3) -1.1% Treasuries. Second, a large influx of supply hit the corporate sector during the quarter. For example, AT &T issued $17.5B in Aggregate (5.6) -1 7% new debt, representing the third largest corporate deal on Intermediate Agg (4.2) -0.7% record, to help finance the company's acquisition of DirecTV. Global Agg x US (7.3) -0.8rY° ,- This increased supply of corporate debt led to softer credit Multiverse (6.4 ) --1.0°/o markets and wider spreads demanded by investors relative to -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% ' Treasuries. 1 - Year Performance • Due to the more pronounced increases in interest rates on the AAA (5.1) 2296 long end of the Treasury yield curve, longer dated issues AA (5.7) 2.096 underperformed short maturity issues for the quarter. The quarterly return on the Barclays 20+ Year U.S. Treasury Index A (6.9) 1 4% was -9.1% versus a 0.1% return on the Barclays 1 -3 Year Baa (7.5) 0.1% Treasury Index. U.S. High Yield (4.4) -0.4% U.S. Treasury (5.6) 2.3% • While international bond indices held up fairly well during the U.S. Mortgage (4.6) 2 . 3 % quarter relative to domestic bond index results, their U.S. Corporate IG (7.1) ii 0.8% performance illustrates a significant lag over the one -year U.S. TIPS (6.3) 1.7% period. During the quarter, Eurozone bonds initially surged higher on optimism surrounding the ECB's new quantitative Aggregate (5.6) 7. a 1.9% easing program. However, later in the period, ongoing turmoil surrounding Greece resulted in the market giving back all of its Intermediate Agg (4.2) 1.9% early gains and more. Much like equity index performance, the Global Agg x US (7.3) -13 2% one -year trailing returns for the global bond indices are Multiverse (6.4) -7.1% negatively impacted by the strength of the USD over the period. - 15.0 % - 10.0 % -5.0% 0.0% 5.0% Source: Barclays Capital Live THE 8 BOGDAHN GROUP. 4 1 The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2015 one -year trailing returns for the global bond indices are Multiverse (6.4) I -7.1% negatively impacted by the strength of the USD over the period. - 15.0% - 10.0% -5.0% 0.0% 5.0% THE Source: Barclays Capital Live r 8 BOGDAHN GROUP The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2015 • The Treasury yield curve in the U.S. steepened significantly 1 - Year Trailing Market Rates 3.50 during the second quarter. Since prices and performance move a Fed Funds Rate •TED Spread •3 Month Libor in the opposite direction of yields, the long -end of the curve was BAA OAS •10yr Treasury •10yr TIPS • the worst performing maturity segment. Thirty -year Treasuries 3.00 - experienced a 10.4% decline during the period. The yield on the 30 -year Treasury rose from 2.54% to 3.11% in the quarter. 2.50 At the short end of the curve, 2 -year Treasuries rose from 0.56% to 0.64 %. 2.00 - -a _ • The main driver behind the rate increases during the quarter 1.50 was market participants indicating, through their trading activity, an expectation that the Fed would move to increase short-term - interest rates later this year. This expectation was also reflected 1.00 in the increase in TIPS yields during the period which jumped from 0.2% to 0.5 %. The late period decline in Treasury yields 0.50 came as a result of the previously mentioned flight -to- quality often accompanying headline geopolitical events like Greece's 0.00 economic woes. Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 Apr -15 May -15 Jun -15 Treasury Yield Curve • It is not expected U.S. rates will rise significantly or that a yield 4.00 curve steepening will continue unabated in the near term. i- 9/30/2014 — 12/31/2014 c- 3/31/2015 —r'- 6/30/2015 Should the Fed raise the short-term rates later this year, the 3.50 - Fed has telegraphed they will do so at a measured pace and • with an ongoing assessment of current economic data. 3.00 - Geopolitical events, overseas quantitative easing (QE) programs, and lower interest rates outside the U.S. should put 2 ♦ • downward pressure on how high long -term U.S. rates can go. • 2.00 • 1.50 - �♦ 1.00 - ♦ 0.50 - /r . ♦/''- 0.00 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) THE 9 r BOGDAHN GROUP. Asset Allocation Summary Total Fund As of June 30. 2015 Asset Allocation By Segment as of Ma Asset Allocation Segment as of June 30, 2015 : $84,210,565 March 31, 20155 : : $84,932,441 Allocation Allocation Market Value Allocation Market Value Allocation Segments J Segments 44,844,824 53.3 45,916,435 54.1 • Domestic Equity 13 3 • Domestic Equity 1 In ternational Equity 10,904,000 • International Equity 10,790,778 12.7 • Domestic Fixed Income 8,386,710 10.0 10.4 • Domestic Fixed Income 8,800,010 7,703,225 9.1 7,723,889 9.1 Global Fixed Income Global Fixed Income • Other Fixed Income 3,056,310 3.6 • Other Fixed Income 3,696,669 4.4 4.1 8 7 7,645,850 • Real Estate 7,366,251 • Real Estate 1 029,287 1.2 Cash 1,278,767 1.5 Cash THE ( 10 BOGDAHN GROUP Asset Allocation Summary Total Fund A s of June 30. 2015 • Real Estate 7,366,251 o.t ` ° ' ` °' "" 1.2 Cash 1,278,767 1.5 Cash 1,029,287 THE I BOGDAHN 10 GROUP. Asset Allocation Summary Total Fund As of June 30. 2015 Asset Allocation By Manager as of Asset Allocation By Manager as of March 31, 2015: $84,932,441 June 30, 2015: $84,210,565 V .1 i o ., 0 fl .,,n , ,. , _ .,: ;...-::„:..- -,;,,',„ if Allocation Allocation Market Value Allocation Market Value Allocation • Vanguard Mid -Cap Index Fund (VMCIX) 14,496,866 17.1 • Vanguard Mid -Cap Index Fund (VMCIX) 13,832,017 16.4 • Anchor All Cap Value Equity 10,972,688 12.9 Oil Anchor All Cap Value Equity 10,781,370 12.8 • Vanguard 500 Index Signal (VFIAX) 10,595,994 12.5 DSM Large Cap Growth 10,769,362 12.8 DSM Large Cap Growth 10,514,519 12.4 • Vanguard 500 Index Signal (VFIAX) 9,907,314 11.8 • Schroders Core Fixed Income 7,834,907 9.2 • Schroders Core Fixed Income 7,458,479 8.9 • WCM International Growth Fund (WCMIX) 5,401,350 6.4 • WCM International Growth Fund (WCMIX) 5,454,089 6.5 American Funds EuroPacific Gr R6 (RERGX) 5,389,428 6.3 American Funds EuroPacific Gr R6 (RERGX) 5,449,911 6.5 Intercontinental 4,719,085 5.6 Intercontinental 4,869,642 5.8 PIMCO Diversified Income Fund (PDIIX) 3,961,428 4.7 PIMCO Diversified Income Fund (PDIIX) 3,949,641 4.7 Templeton Global Bond Fund (FBNRX) 3,762,461 4.4 Templeton Global Bond Fund (FBNRX) 3,753,588 4.5 • ASB RE 2,647,166 3.1 • ASB RE 2,776,208 3.3 Vi LBC Credit Partners III 1,786,637 2.1 LBC Credit Partners III 2,216,605 2.6 • Crescent Direct Lending Levered Fund 1,269,673 1.5 • Crescent Direct Lending Levered Fund 1,480,064 1.8 • SchrodersTlPS 1,161,154 1.4 51 SchrodersTlPS 1,158,402 1.4 • Receipt & Disbursement 287,611 0.3 • Receipt & Disbursement 207,181 0.2 Mutual Fund Cash 131,473 0.2 Mutual Fund Cash 146,692 0.2 THE 11 ( r BOGDAHN GROUP. _ . Paroe intentic iippett ioioiatil 12 Asset Allocation vs. Target Allocatior Total Fun( As of June 30, 201! Asset Allocation versus Target Allocation 12 Asset Allocation vs. Target Allocation Total Fund As of June 30, 2015 Asset Allocation versus Target Allocation Vanguard 500 Index Signal (VIFSX) -3.2 % DSM Large Cap Growth 2.8% Anchor All Cap Value Equity 2.8% Vanguard Mid -Cap Index Fund (VMCIX) 6.4% WCM International Growth Fund (WCMIX) -1.0 % American Funds EuroPacific Gr R6 (RERGX) -1.0 % Schroders Core Fixed Income -1.1 % Schroders TIPS -3.6 % PIMCO Diversified Income Fund (PDIIX) 1.2% Templeton Global Bond Fund (FBNRX) 1.0% Intercontinental 10E0.8% ASB RE -1.7 % - Crescent Direct Lending Fund -2.2 % LBC Credit Partners III -1.4 % Receipt & Disbursement 00.2% Mutual Fund Cash 10.2% -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0% III Allocation Differences Market Value Allocation ( %) Target ( %) Vanguard 500 Index Signal (VIFSX) 9,907,314 11.8 15.0 DSM Large Cap Growth 10,769,362 12.8 10.0 Anchor All Cap Value Equity 10,781,370 12.8 10.0 Vanguard Mid -Cap Index Fund (VMCIX) 13,832,017 16.4 10.0 WCM International Growth Fund (WCMIX) 5,454,089 6.5 7.5 American Funds EuroPacific Gr R6 (RERGX) 5,449,911 6.5 7.5 Schroders Core Fixed Income 7,458,479 8.9 10.0 Schroders TIPS 1,158,402 1.4 5.0 PIMCO Diversified Income Fund (PDIIX) 3,949,641 4.7 3.5 Templeton Global Bond Fund (FBNRX) 3,753,588 4.5 3.5 Intercontinental 4,869,642 5.8 5.0 ASB RE 2,776,208 3.3 5.0 Crescent Direct Lending Fund 1,480,064 1.8 4.0 LBC Credit Partners III 2,216,605 2.6 4.0 Receipt & Disbursement 207,181 0.2 0.0 Mutual Fund Cash 146,692 0.2 0.0 Total Fund 84,210,565 100.0 100.0 Imat THE 13 r Li..,../ BOGDAHN GROUP. L Asset Allocation History by Portfolio Total Fund As of June 30, 2015 Asset Allocation Attributes Jun -2015 Mar -2015 Dec -2014 Sep -2014 Jun -2014 ($) % ($) % ($) % ($) % ($) % Total Equity 56,194,063 66.73 57,370,846 67.55 56,045,827 66.99 51,774,390 66.22 50,880,364 64.56 Total Domestic Equity 45,290,063 53.78 46,580,067 54.84 45,760,496 54.69 40,977,949 52.41 38,929,316 49.39 Anchor All Cap Value Equity 10,781,370 12.80 10,972,688 12.92 10,972,169 13.11 10,507,535 13.44 10,585,719 13.43 Vanguard 500 Index Signal (VFIAX) 9,907,314 11.76 10,595,994 12.48 10,688,544 12.77 7,365,174 9.42 5,812,043 7.37 DSM Large Cap Growth 10,769,362 12.79 10,514,519 12.38 10,112,333 12.09 9,334,715 11.94 9,104,731 11.55 Vanguard Mid -Cap Index Fund (VMCIX) 13,832,017 16.43 14,496,866 17.07 13,987,451 16.72 13,770,525 17.61 13,426,823 17.04 Total International Equity 10,904,000 12.95 10,790,778 12.71 10,285,331 12.29 10,796,441 13.81 11,951,048 15.16 Manning & Napier Overseas (EXOSX) - 0.00 - 0.00 10,285,331 12.29 10,796,441 13.81 11,951,048 15.16 American Funds EuroPacific Gr R6 (RERGX) 5,449,911 6.47 5,389,428 6.35 - 0.00 - 0.00 - 0.00 WCM International Growth Fund (WCMIX) 5,454,089 6.48 5,401,350 6.36 - 0.00 - 0.00 - 0.00 Total Fixed Income 20,016,779 23.77 19,776,261 23.28 19,889,725 23.77 18,616,809 23.81 18,596,391 23.60 Total Domestic Fixed Income 8,616,881 10.23 8,996,061 10.59 9,061,325 10.83 9,102,952 11.64 9,267,930 11.76 Schroders Core Fixed Income 7,458,479 8.86 7,834,907 9.22 7,916,161 9.46 7,944,675 10.16 8,086,977 10.26 Schroders TIPS 1,158,402 1.38 1,161,154 1.37 1,145,165 1.37 1,158, 277 1.48 1,180,953 1.50 Total Global Fixed Income 7,703,229 9.15 7,723,889 9.09 7,585,629 9.07 7,704,268 9.85 7,785,312 9.88 PIMCO Diversified Income Fund (PDIIX) 3,949,641 4.69 3,961,428 4.66 3,832,746 4.58 3,890,191 4.98 3,974,277 5.04 Templeton Global Bond Fund (FBNRX) 3,753,588 4.46 3,762,461 4.43 3,752,883 4.49 3,814,078 4.88 3,811,036 4.84 Total Real Estate 7,645,850 9.08 7,366,251 8.67 7,256,463 8.67 6,993,002 8.94 6,752,216 8.57 Intercontinental 4,869,642 5.78 4,719,085 5.56 4,672,775 5.58 4,491,994 5.75 4,336,329 5.50 ASB RE 2,776,208 3.30 2,647,166 3.12 2,583,688 3.09 2,501,008 3.20 2,415,887 3.07 Total Non -Core Fixed Income 3,696,669 4.39 3,056,310 3.60 3,242,770 3.88 1,809,589 2.31 1,543,149 1.96 LBC Credit Partners III 2,216,605 2.63 1,786,637 2.10 2,081,427 2.49 1,809,589 2.31 1,543,149 1.96 Crescent Direct Lending Levered Fund 1,480,064 1.76 1,269,673 1.49 1,161,343 1.39 - 0.00 - 0.00 Cash Receipt & Disbursement 207,181 0.25 287,611 0.34 324,780 0.39 774,065 0.99 2,394,991 3.04 Mutual Fund Cash 146,692 0.17 131,473 0.15 152,023 0.18 26,356 0.03 189,702 0.24 Boynton Beach Firefighters' Total Fund 84,210,565 100.00 84,932,441 100.00 83,668,818 100.00 78,184,621 100.00 78,813,664 100.00 THE 14 ZN BOGDAHN L---, GROUP. Asset Allocation History by Segment Total Fund TH 1 a r BOGDAHN THE GROUP. Asset Allocation History by Segment Total Fund October 1, 2007 To June 30, 2015 Asset Allocation Attributes 100.0 90.0 80.0 70.0 60.0 m 500 40.0 . 30.0 20.0 10.0 0.0 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 Domestic Equity International Equity • Domestic Fixed Income Global Fixed Income II Other Fixed Income • Real Estate Alternative Investment Cash THE 15 (� BOGDAHN GROUP. L - — Plan Sponsor TF Asset Allocation Total Fund Vs. All Public Plans -Total Fund As of June 30, 2015 68.0 60.0 -- t� 0 52.0_1 44.0 36.0 c, o 28.0 7 * _; '''', K v off. 20.0 12.0 • • • 4.0 - INN IIIIIMIII1 -4.0 t I -12.0 US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash • Total Fund 53.78 (13) 12.95 (73) 10.23 (98) 9.15 (5) 4.39 (83) 9.08 (29) 0.42 (80) 5th Percentile 57.54 26.45 47.72 8.76 35.37 12.19 5.08 1st Quartile 50.31 19.99 33.89 5.01 20.19 9.50 2.04 Median 43.86 14.86 28.00 4.60 11.79 5.47 1.09 3rd Quartile 32.24 12.62 21.75 3.77 5.33 4.03 0.51 95th Percentile 19.81 8.46 12.69 0.21 1.19 2.33 0.06 THE 16 C )' BOGDAHN `--- GROUP. A Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2015 Financial Reconciliation Quarter to Date Market Value Net Management Other Return On Market Value 04/01/2015 Transfers Contributions Distributions Fees Expenses Investment 06/30/2015 Median 43.86 14.86 28.OU '" 3rd Quartile 32.24 12.62 21.75 3.77 5.33 4.03 0.51 95th Percentile 19.81 8.46 12.69 0.21 1.19 2.33 0.06 ININ THE 16 BOGDAHN ` -- " � GROUP Financial Reconciliation Quarter to Date Total Fund 1 Quarter Ending June 30, 2015 Financial Reconciliation Quarter to Date Market Value Net Contributions Distributions Management Other Return On Market Value 04/01/2015 Transfers Fees Expenses Investment 06/30/2015 Total Equity 57,370,846 - 1,236,580 - - - -2,146 61,944 56,194,063 Total Domestic Equity 46,580,067 - 1,236,580 - - - -2,146 - 51,278 45,290,063 Anchor All Cap Value Equity 10,972,688 - - - - -1,095 - 190,224 10,781,370 Vanguard 500 Index Signal (VFIAX) 10,595,994 - 729,413 - - - - 40,733 9,907,314 DSM Large Cap Growth 10,514,519 - - - - -1,051 255,895 10,769,362 Vanguard Mid -Cap Index Fund (VMCIX) 14,496,866 - 507,167 - - - - - 157,682 13,832,017 Total International Equity 10,790,778 - - - - - 113,222 10,904,000 Manning & Napier Overseas (EXOSX) - - - - - - - - American Funds EuroPacific Gr R6 (RERGX) 5,389,428 - - - - - 60,483 5,449,911 WCM International Growth Fund (WCMIX) 5,401,350 - - - - - 52,739 5,454,089 Total Fixed Income 19,776,261 324,792 - - - -895 - 83,378 20,016,779 Total Domestic Fixed Income 8,996,061 - 312,343 - - - -895 - 65,942 8,616,881 Schroders Core Fixed Income 7,834,907 - 312,343 - - - -779 - 63,306 7,458,479 Schroders TIPS 1,161,154 - - - - -116 -2,636 1,158,402 Total Global Fixed Income 7,723,889 - - - - - - 20,660 7,703,229 PIMCO Diversified Income Fund (PDIIX) 3,961,428 - - - - - - 11,787 3,949,641 Templeton Global Bond Fund (FBNRX) 3,762,461 - - - - - -8,873 3,753,588 Total Real Estate 7,366,251 - - - - 16,889 - 296,488 7,645,850 Intercontinental 4,719,085 - - - -8,617 - 159,174 4,869,642 ASB RE 2,647,166 - - - -8,272 - 137,314 2,776,208 Total Non -Core Fixed Income 3,056,310 637,135 - - - - 3,224 3,696,669 LBC Credit Partners III 1,786,637 429,968 - - - - - 2,216,605 Crescent Direct Lending Levered Fund 1,269,673 207,167 - - - - 3,224 1,480,064 i Cash Receipt & Disbursement 287,611 892,189 274,967 - 1,246,771 - -821 5 207,181 Mutual Fund Cash 131,473 19,600 - - - -4,372 -8 146,692 Boynton Beach Firefighters' Total Fund 84,932,441 - 274,967 - 1,246,771 - 16,889 -8,234 275,050 84,210,565 1111 THE 17 ( BOGDAHN GROUP ii Financial Reconciliation Fiscal Year to Date Total Fund October 1, 2014 To June 30, 2015 Financial Reconciliation Fiscal Year to Date Market Value Net Contributions Distributions Management Other Return On Market Value 10/01/2014 Transfers Fees Expenses Investment 06/30/2015 Total Equity 51,774,390 610,262 73,323 - - 73,323 -6,236 3,815,647 56,194,063 Total Domestic Equity 40,977,949 610,262 73,323 - - 73,323 -6,236 3,708,088 45,290,063 Anchor All Cap Value Equity 10,507,535 - 30,601 - - 30,601 -3,240 277,075 10,781,370 Vanguard 500 Index Signal (VFIAX) 7,365,174 1,886,324 - - - - 655,815 9,907,314 DSM Large Cap Growth 9,334,715 - 42,722 - - 42,722 -2,996 1,437,643 10,769,362 Vanguard Mid -Cap Index Fund (VMCIX) 13,770,525 - 1,276,062 - - - - 1,337,554 13,832,017 Total International Equity 10,796,441 - - - - - 107,559 10,904,000 Manning & Napier Overseas (EXOSX) 10,796,441 - 10,670,852 - - - - - 125,588 - American Funds EuroPacific Gr R6 (RERGX) - 5,335,426 - - - - 114,485 5,449,911 WCM International Growth Fund (WCMIX) - 5,335,426 - - - - 118,663 5,454,089 Total Fixed Income 18,616,809 1,161,965 14,749 - - 49,749 - 99,287 372,292 20,016,779 Total Domestic Fixed Income 9,102,952 - 652,653 14,749 - - 14,749 -2,699 169,281 8,616,881 Schroders Core Fixed Income 7,944,675 - 652,653 14,749 - - 14,749 -2,353 168,811 7,458,479 Schroders TIPS 1,158,277 - - - - -346 470 1,158,402 Total Global Fixed Income 7,704,268 - - - - - -1,039 7,703,229 PIMCO Diversified Income Fund (PDIIX) 3,890,191 - - - - - 59,450 3,949,641 Templeton Global Bond Fund (FBNRX) 3,814,078 - - - - - - 60,489 3,753,588 Total Real Estate 6,993,002 - - - - 89,964 - 742,812 7,645,850 Intercontinental 4,491,994 - - - - 65,804 - 443,452 4,869,642 ASB RE 2,501,008 - - - - 24,160 - 299,360 2,776,208 Total Non -Core Fixed Income 1,809,589 1,814,619 - - - 35,000 - 96,588 204,050 3,696,669 LBC Credit Partners III 1,809,589 319,201 - - - 35,000 - 44,764 167,580 2,216,605 Crescent Direct Lending Levered Fund - 1,495,418 - - - - 51,824 36,470 1,480,064 Cash Receipt & Disbursement 774,065 - 1,905,165 4,871,044 - 3,530,271 - -2,532 40 207,181 Mutual Fund Cash 26,356 132,938 - - -4,268 -8,337 3 146,692 Boynton Beach Firefighters' Total Fund 78,184,621 - 4,959,116 - 3,530,271 - 217,304 - 116,392 4,930,794 84,210,565 THE. 18 r BOGDAHN ` GROUP. Comparative Performance Trailing Returns Total Fund As of June 30, 2015 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 0.30 5.82 4.62 11.35 10.61 5.13 01/01/2002 THE (_ 18 BOGDAHN `- or GROUP. Comparative Performance Trailing Returns Total Fund As of June 30, 2015 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund (Net) 0.30 5.82 4.62 11.35 10.61 5.13 01/01/2002 Total Fund Policy 0.37 4.96 4.43 11.10 11.55 5.69 Difference -0.07 0.86 0.19 0.25 -0.94 -0.56 Total Fund (Gross) 0.32 (19) 6.10 (11) 4.99 (13) 11.85 (18) 11.13 (43) 5.38 (93) 01/01/2002 Total Fund Policy 0.37 (17) 4.96 (41) 4.43 (28) 11.10 (41) 11.55 (25) 5.69 (85) Difference -0.05 1.14 0.56 0.75 -0.42 -0.31 All Public Plans -Total Fund Median -0.18 4.69 3.51 10.74 10.84 6.47 Total Equity 0.10 7.06 4.82 16.24 14.47 3.61 10/01/2007 Total Equity Policy 0.31 5.58 4.21 15.79 15.21 4.99 Difference -0.21 1.48 0.61 0.45 -0.74 -1.38 Total Domestic Equity -0.12 (55) 8.64 (34) 8.84 (28) 18.28 (37) 16.86 (47) 5.62 (59) 10/01/2007 Total Domestic Equity Policy 0.14 (44) 7.28 (48) 7.29 (42) 17.73 (46) 17.54 (32) 6.58 (39) Difference -0.26 1.36 1.55 0.55 -0.68 -0.96 IM U.S. All Cap Equity (SA +CF +MF) Median 0.00 7.19 6.48 17.55 16.58 6.03 Total International Equity 1.05 (47) 0.98 (73) -8.77 (98) 9.15 (87) 7.07 (93) -4.07 (100) 10/01/2007 Total International Equity Policy 0.72 (62) 0.37 (80) -4.85 (73) 9.92 (73) 8.23 (78) -0.17 (44) Difference 0.33 0.61 -3.92 -0.77 -1.16 -3.90 IM International Multi -Cap Core Equity (MF) Median 1.01 2.26 -3.75 11.46 9.38 -0.45 Total Fixed Income -0.42 (20) 1.93 (30) 2.01 (27) 3.69 (6) 4.21 (11) 5.17 (19) 10/01/2007 Total Fixed Income Policy -0.73 (74) 1.60 (66) 1.28 (93) 1.33 (94) 2.96 (68) 4.25 (88) Difference 0.31 0.33 0.73 2.36 1.25 0.92 IM U.S. Intermediate Duration (SA +CF) Median -0.60 1.75 1.76 2.09 3.21 4.64 Total Domestic Fixed Income -0.76 (3) 1.84 (47) 1.79 (75) 2.07 (67) 3.34 (90) 4.60 (91) 10/01/2007 Total Domestic Fixed Income Policy -0.73 (3) 1.60 (76) 1.28 (94) 1.33 (99) 2.96 (99) 4.25 (96) Difference -0.03 0.24 0.51 0.74 0.38 0.35 IM U.S. Broad Market Core Fixed Income (SA +CF) Median -1.60 1.81 2.03 2.37 3.90 5.21 Total Global Fixed Income -0.27 (11) -0.01 (26) -1.05 (30) 4.22 (4) N/A 4.62 (9) 03/01/2011 BofA Merrill Lynch Global Broad Market Index -1.26 (28) -3.56 (53) -6.30 (67) -0.59 (73) 2.22 (61) 1.12 (64) Difference 0.99 3.55 5.25 4.81 N/A 3.50 • IM Global Fixed Income (MF) Median -1.91 -3.45 -4.85 1.17 2.63 1.82 Total Real Estate 4.02 (49) 10.68 (65) 14.89 (50) 14.18 (39) 13.42 (76) 13.25 (N /A) 05/01/2010 - ., Total Real Estate Policy 3.91 (51) 10.68 (65) 14.51 (52) 12.88 (72) 14.26 (72) 14.69 (N /A) Difference 0.11 0.00 0.38 1.30 -0.84 -1.44 IM U.S. Open End Private Real Estate (SA +CF) Median 3.94 11.87 14.88 13.57 15.45 N/A Returns for periods greater than one year are annualized. Returns are expressed as percentages. Tti1,. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst r � BOGDAHN Non -Core Fixed Income reported on IRR page. 19 c ......or GROUP. 1 1 Comparative Performance Trailing Returns Total Fund As of June 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Equity Anchor All Cap Value Equity -1.73 (89) 2.64 (84) 1.89 (76) 16.01 (70) 16.36 (63) 15.29 (63) 08/01/2009 Russell 3000 Value Index 0.00 (49) 4.77 (64) 3.86 (50) 17.20 (53) 16.36 (63) 15.23 (64) Difference -1.73 -2.13 -1.97 -1.19 0.00 0.06 IM U.S. All Cap Value Equity (SA +CF) Median -0.07 5.80 3.47 17.34 17.10 15.74 Vanguard 500 Index Signal (VFIAX) 0.28 (9) 6.27 (1) 7.46 (1) 17.28 (2) 17.26 (5) 6.73 (5) 12/01/2007 S &P 500 Index 0.28 (11) 6.22 (3) 7.42 (2) 17.31 (1) 17.34 (1) 6.77 (3) Difference 0.00 0.05 0.04 -0.03 -0.08 -0.04 IM S &P 500 Index (MF) Median 0.17 5.87 6.93 16.77 16.77 6.29 DSM Large Cap Growth 2.43 (6) 15.40 (6) 18.33 (4) 20.24 (24) 20.69 (12) 16.55 (38) 11/01/2008 Russell 1000 Growth Index 0.12 (65) 8.94 (63) 10.56 (57) 17.99 (59) 18.59 (42) 16.61 (38) Difference 2.31 6.46 7.77 2.25 2.10 -0.06 IM U.S. Large Cap Growth Equity (SA +CF) Median 0.63 9.87 11.22 18.54 18.21 15.90 Vanguard Mid -Cap Index Fund (VMCIX) -1.16 (56) 9.79 (39) 8.54 (17) N/A N/A 17.06 (16) 07/01/2013 CRSP U.S. Mid Cap TR Index -1.18 (57) 9.94 (34) 8.68 (15) 19.66 (18) 18.51 (12) 17.17 (14) Difference 0.02 -0.15 -0.14 N/A N/A -0.11 IM U.S. Mid Cap Core Equity (MF) Median -0.95 8.60 5.86 18.02 16.33 14.67 International Equity WCM International Growth Fund (WCMIX) 0.98 (45) N/A N/A N/A N/A 0.98 (45) 04/01/2015 MSCI AC World ex USA 0.72 (60) 0.37 (92) -4.85 (91) 9.92 (72) 8.23 (83) 0.72 (60) Difference 0.26 N/A N/A N/A N/A 0.26 IM International Large Cap Growth Equity (MF) Median 0.88 3.65 -1.42 10.94 9.19 0.88 American Funds EuroPacific Gr R6 (RERGX) 1.12 (35) N/A N/A N/A N/A 1.12 (35) 04/01/2015 MSCI AC World ex USA 0.72 (60) 0.37 (92) -4.85 (91) 9.92 (72) 8.23 (83) 0.72 (60) Difference 0.40 N/A N/A N/A N/A 0.40 IM International Large Cap Growth Equity (MF) Median 0.88 3.65 -1.42 10.94 9.19 0.88 Returns for periods greater than one year are annualized. Returns are expressed as percentages. g THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst Non -Core Fixed Income reported on IRR page. 20 ( BOGDAHN GROUP. Comparative Performance Trailing Returns Total Fund As of June 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Fixed Income THE Returns for periods greater than one year are annualized. Returns are expressed as percentages. t� � B O GDAH N Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst I Non -Core Fixed Income reported on IRR page. 20 ` \` GROUP. Comparative Performance Trailing Returns Total Fund As of June 30, 2015 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Domestic Fixed Income Schroders Core Fixed Income -0.84 (86) 2.11 (16) 2.34 (9) 2.48 (30) 3.42 (40) 4.73 (46) 04/01/2007 Schroders Core Fixed Income Policy -0.67 (62) 1.85 (39) 1.89 (35) 1.74 (74) 2.89 (75) 4.33 (84) Difference -0.17 0.26 0.45 0.74 0.53 0.40 IM U.S. Intermediate Duration (SA +CF) Median -0.60 1.75 1.76 2.09 3.21 4.67 Schroders TIPS -0.23 0.04 -1.87 -0.52 2.57 3.65 11/01/2007 Barclays U.S. Treasury: U.S. TIPS Index -1.06 0.32 -1.73 -0.76 3.29 4.35 Difference 0.83 -0.28 -0.14 0.24 -0.72 -0.70 Barclays U.S. TIPS 1 -10 Year -0.15 0.04 -1.95 -0.54 2.36 3.63 Difference -0.08 0.00 0.08 0.02 0.21 0.02 Global Fixed Income PIMCO Diversified Income Fund (PDIIX) -0.30 (11) 1.53 (5) -0.62 (28) 4.10 (6) N/A 5.21 (6) 03/01/2011 Barclays Global Credit (Hedged) -2.02 (55) 1.23 (8) 1.53 (11) 4.50 (2) 5.38 (7) 5.24 (6) Difference 1.72 0.30 -2.15 -0.40 N/A -0.03 IM Global Fixed Income (MF) Median -1.91 -3.45 -4.85 1.17 2.63 1.82 Templeton Global Bond Fund (FBNRX) -0.24 (10) -1.59 (35) -1.51 (32) 4.53 (2) N/A 4.13 (13) 03/01/2011 Citigroup World Government Bond -1.55 (41) -5.45 (91) -9.02 (91) -2.45 (96) 1.05 (89) -0.28 (90) Difference 1.31 3.86 7.51 6.98 N/A 4.41 IM Global Fixed Income (MF) Median -1.91 -3.45 -4.85 1.17 2.63 1.82 Real Estate Intercontinental 3.37 (63) 9.93 (70) 14.09 (53) 14.69 (37) 13.72 (74) 13.31 (79) 04/01/2010 NCREIF ODCE 3.91 (51) 10.68 (65) 14.51 (52) 12.88 (72) 14.26 (72) 14.44 (72) Difference -0.54 -0.75 -0.42 1.81 -0.54 -1.13 IM U.S. Open End Private Real Estate (SA +CF) Median 3.94 11.87 14.88 13.57 15.45 15.10 ASB RE 5.19 (11) 12.01 (49) 16.31 (46) N/A N/A 13.92 (40) 10/01/2012 NCREIF Fund ODCE 3.91 (51) 10.68 (65) 14.51 (52) 12.88 (72) 14.26 (72) 12.99 (72) Difference 1.28 1.33 1.80 N/A N/A 0.93 IM U.S. Open End Private Real Estate (SA +CF) Median 3.94 11.87 14.88 13.57 15.45 13.75 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst Non -Core Fixed Income reported on IRR page. 21 ( BOGDAHN , GROUP. Comparative Performance - IRR As of June 30, 2015 Comparative Performance - IRR Inception QTR 1 YR Inception Date Total Non -Core Fixed Income 0.10 5.60 6.28 06/23/2014 Crescent Direct Lending Levered Fund 0.23 N/A -1.44 10/01/2014 LBC Credit Partners III 0.00 9.11 10.06 06/23/2014 VIINI THE 22 (� BOGDAHN `-� GROUP. Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2015 Comparative Performance Fiscal Year Returns Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 FYTD To To To To To To To To To ION THE 22 C BOGDAHN GROUP. Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2015 Comparative Performance Fiscal Year Returns Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Total Fund (Net) 5.82 10.27 13.19 16.85 -0.65 8.86 0.39 -16.85 12.60 5.63 Total Fund Policy 4.96 10.72 12.75 18.46 2.14 9.96 0.46 -12.79 12.37 8.29 Difference 0.86 -0.45 0.44 -1.61 -2.79 -1.10 -0.07 -4.06 0.23 -2.66 Total Fund (Gross) 6.10 (11) 10.82 (35) 13.73 (31) 17.43 (58) -0.15 (61) 9.37 (66) 0.75 (62) -16.85 (91) 12.71 (76) 5.63 (95) Total Fund Policy 4.96 (41) 10.72 (38) 12.75 (48) 18.46 (39) 2.14 (17) 9.96 (50) 0.46 (65) -12.79 (40) 12.37 (81) 8.29 (55) Difference 1.14 0.10 0.98 -1.03 -2.29 -0.59 0.29 -4.06 0.34 -2.66 All Public Plans -Total Fund Median 4.69 10.15 12.60 17.93 0.32 9.93 1.59 -13.57 14.37 8.55 ' Total Equity 7.06 13.04 21.99 24.13 -4.84 11.41 -7.70 -26.59 N/A N/A Total Equity Policy 5.58 14.53 20.52 26.34 -2.27 10.41 -4.64 -23.02 16.02 10.79 Difference 1.48 -1.49 1.47 -2.21 -2.57 1.00 -3.06 -3.57 N/A N/A Total Domestic Equity 8.64 (34) 17.31 (30) 22.27 (59) 27.05 (48) -1.98 (52) 13.08 (28) -8.26 (78) -24.14 (57) N/A N/A Total Domestic Equity Policy 7.28 (48) 17.76 (24) 21.60 (64) 30.20 (21) 0.55 (30) 10.96 (44) -6.15 (64) -21.77 (35) 15.89 (63) 10.79 (28) Difference 1.36 -0.45 0.67 -3.15 -2.53 2.12 -2.11 -2.37 N/A N/A IM U.S. All Cap Equity (SA +CF +MF) Median 7.19 15.35 23.43 26.74 -1.80 10.28 -4.10 -23.38 17.34 8.57 Total International Equity 0.98 (73) -0.43 (95) 20.93 (52) 15.82 (37) -13.23 (82) 2.52 (77) -4.87 (90) -39.20 (98) N/A N/A Total International Equity Policy 0.37 (80) 5.22 (30) 16.98 (82) 15.04 (51) -10.42 (40) 6.90 (27) 3.80 (36) -30.13 (38) 25.38 (42) 19.65 (23) Difference 0.61 -5.65 3.95 0.78 -2.81 -4.38 -8.67 -9.07 N/A N/A IM International Multi -Cap Core Equity (MF) Median 2.26 4.28 21.36 15.07 -11.08 4.69 1.80 -31.01 24.97 18.39 Total Fixed Income 1.93 6.10 0.12 8.83 1.60 8.25 13.29 0.63 N/A N/A Total Fixed Income Policy 1.60 2.55 -1.62 5.11 5.16 7.78 9.19 3.52 5.31 3.54 Difference 0.33 3.55 1.74 3.72 -3.56 0.47 4.10 -2.89 N/A N/A Total Domestic Fixed Income 1.84 (47) 3.13 (97) -0.67 (22) 5.88 (78) 3.91 (94) 8.25 (84) 13.29 (33) 0.63 (67) N/A N/A Total Domestic Fixed Income Policy 1.60 (76) 2.55 (99) -1.62 (77) 5.11 (93) 5.16 (58) 7.78 (93) 9.19 (90) 3.52 (36) 5.31 (34) 3.54 (87) Difference 0.24 0.58 0.95 0.77 -1.25 0.47 4.10 -2.89 N/A N/A IM U.S. Broad Market Core Fixed Income (SA +CF) Median 1.81 4.51 -1.28 6.60 5.26 9.22 12.29 2.54 5.15 3.86 Total Global Fixed Income -0.01 (26) 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 -3.56 (53) 1.45 (81) -2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84) 13.36 (58) 2.80 (14) 8.01 (44) 3.36 (24) Difference 3.55 4.77 4.28 9.67 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -3.45 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Total Real Estate 10.68 (65) 13.66 (40) 16.37 (17) 12.16 (60) 16.52 (54) N/A N/A N/A N/A N/A Total Real Estate Policy 10.68 (65) 12.39 (71) 12.47 (68) 11.77 (66) 18.03 (41) 6.14 (52) -36.09 (54) 3.73 (46) 17.84 (58) 17.49 (55) Difference 0.00 1.27 3.90 0.39 -1.51 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 11.87 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 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 THE Non -Core Fixed income reported on IRR page rt 23 BOGDAHN GROUP. 1. Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Domestic Equity Anchor All Cap Value Equity 2.64 (84) 17.85 (24) 22.80 (68) 23.97 (75) 3.61 (16) 12.47 (41) N/A N/A N/A N/A Russell 3000 Value Index 4.77 (64) 17.66 (28) 22.67 (69) 31.05 (18) -2.22 (61) 9.15 (71) -10.79 (94) -22.70 (76) 13.73 (79) 14.55 (22) Difference -2.13 0.19 0.13 -7.08 5.83 3.32 N/A N/A N/A N/A IM U.S. All Cap Value Equity (SA +CF) Median 5.80 15.40 26.39 27.72 -1.25 10.77 -3.46 -19.90 16.93 11.19 Dalton All Cap Value Equity N/A N/A N/A 22.28 (83) -5.44 (92) 17.46 (12) N/A N/A N/A N/A Russell 3000 Value Index 4.77 (64) 17.66 (28) 22.67 (69) 31.05 (18) -2.22 (61) 9.15 (71) -10.79 (94) -22.70 (76) 13.73 (79) 14.55 (22) Difference N/A N/A N/A -8.77 -3.22 8.31 N/A N/A N/A N/A IM U.S. All Cap Value Equity (SA +CF) Median 5.80 15.40 26.39 27.72 -1.25 10.77 -3.46 -19.90 16.93 11.19 Vanguard 500 Index Signal (VFIAX) 6.27 (1) 19.65 (7) 19.31 (3) 29.99 (18) 0.99 (16) 10.16 (4) -6.80 (10) N/A N/A N/A S &P 500 Index 6.22 (3) 19.73 (1) 19.34 (1) 30.20 (1) 1.14 (2) 10.16 (4) -6.91 (21) -21.98 (10) 16.44 (2) 10.79 (3) Difference 0.05 -0.08 -0.03 -0.21 -0.15 0.00 0.11 N/A N/A N/A IM S &P 500 Index (MF) 1st Quartile 6.06 19.48 19.10 29.93 0.90 9.95 -6.97 -22.13 16.17 10.53 DSM Large Cap Growth 15.40 (6) 17.22 (59) 19.76 (59) 35.68 (3) -0.82 (72) 17.48 (9) N/A N/A N/A N/A Russell 1000 Growth Index 8.94 (63) 19.15 (38) 19.27 (65) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) -20.88 (54) 19.35 (57) 6.04 (58) Difference 6.46 -1.93 0.49 6.49 -4.60 4.83 N/A N/A N/A N/A IM U.S. Large Cap Growth Equity (SA +CF) Median 9.87 18.02 20.39 27.52 1.36 11.30 -3.06 -20.34 20.19 6.80 Vanguard Mid -Cap Index Fund (VMCIX) 9.79 (39) 15.89 (17) N/A N/A N/A N/A N/A N/A N/A N/A CRSP U.S. Mid Cap TR Index 9.94 (34) 15.94 (16) 28.08 (39) 26.23 (53) -0.18 (23) 18.04 (8) -4.75 (52) -23.20 (64) 18.92 (33) 10.06 (20) Difference -0.15 -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 8.60 11.82 27.62 26.44 -3.21 13.68 -4.62 -21.53 16.68 7.26 International Equity Manning & Napier Overseas (EXOSX) N/A -0.43 (95) 20.93 (52) 16.04 (35) -12.54 (75) 2.52 (77) N/A N/A N/A N/A Total International Equity Policy 0.37 (80) 5.22 (30) 16.98 (82) 15.04 (51) -10.42 (40) 6.90 (27) 3.80 (36) -30.13 (38) 25.38 (42) 19.65 (23) Difference N/A -5.65 3.95 1.00 -2.12 -4.38 N/A N/A N/A N/A IM International Multi -Cap Core Equity (MF) Median 2.26 4.28 21.36 15.07 -11.08 4.69 1.80 -31.01 24.97 18.39 American Funds EuroPacific Gr R6 (RERGX) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA 0.37 (92) 5.22 (33) 16.98 (67) 15.04 (73) -10.42 (42) 8.00 (43) 6.43 (14) -29.97 (62) 31.06 (27) 19.36 (28) Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 3.65 4.34 18.61 17.41 -10.98 7.25 0.53 -28.39 27.81 18.01 WCM International Growth Fund (WCMIX) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA 0.37 (92) 5.22 (33) 16.98 (67) 15.04 (73) -10.42 (42) 8.00 (43) 6.43 (14) -29.97 (62) 31.06 (27) 19.36 (28) Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 3.65 4.34 18.61 17.41 -10.98 7.25 0.53 -28.39 27.81 18.01 Returns for periods greater than one year are annualized. Retums are expressed as percentages. 11.11 THE Parenthesized number represents pertinent peer group ranking: 1 -100, best to worst BOGDAHN Non -Core Fixed income reported on IRR page 24 J GROUP. t .___ _ _ - . Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 FYTD To To To To To To To , To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -200 Sep -2007 Sep -2006 Domestic Fixa_d Inrnma Difference N/A N/A N/A N/A NIA INI r .,r, .. . IM International Large Cap Growth Equity (MF) Median 3.65 4.34 18.61 17.41 -10.98 7.25 0.53 -28.39 27.81 18.01 INN THE 1 Returns for periods greater than one year are annualized ranking are expressed as percentages. � � BOGDAHN Parenthesized number number represeents pertinent peer er group r ranking: 1 -10100, best to worst Non -Core Fixed income reported on IRR page 24 GROUP. Comparative Performance Fiscal Year Returns Total Fund As of June 30, 2015 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 FYTD To To To To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Domestic Fixed Income Schroders Core Fixed Income 2.11 (16) 3.46 (29) 0.04 (32) 5.63 (49) 3.20 (71) 8.34 (47) 14.83 (12) -0.36 (87) N/A N/A Schroders Core Fixed Income Policy 1.85 (39) 2.74 (59) -0.71 (78) 4.31 (85) 4.22 (22) 7.52 (77) 9.69 (82) 4.16 (35) 4.85 (93) 3.33 (98) Difference 0.26 0.72 0.75 1.32 -1.02 0.82 5.14 -4.52 N/A N/A IM U.S. Intermediate Duration (SA +CF) Median 1.75 2.88 -0.27 5.58 3.60 8.28 11.52 3.22 5.49 3.92 Schroders TIPS 0.04 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 0.32 1.59 -6.10 9.10 9.87 8.89 5.67 6.20 4.97 1.91 Difference -0.28 -0.82 1.63 -2.14 -2.18 -1.30 -1.87 N/A N/A N/A Barclays U.S. TIPS 1 -10 Year 0.04 0.61 -3.90 6.32 7.19 7.40 4.02 7.89 5.32 2.28 Difference 0.00 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) 1.53 (5) 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) 1.23 (8) 6.83 (9) 1.46 (9) 11.61 (7) 1.69 (49) 11.05 (31) 15.99 (25) -4.40 (78) 3.82 (82) 4.02 (11) Difference 0.30 -0.74 -1.11 4.64 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -3.45 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Templeton Global Bond Fund (FBNRX) -1.59 (35) 6.35 (12) 3.52 (3) 13.25 (5) N/A N/A N/A N/A N/A N/A Citigroup World Government Bond -5.45 (91) -0.07 (97) -4.60 (85) 3.29 (97) 4.61 (8) 4.99 (95) 13.78 (51) 5.90 (6) 8.69 (31) 2.23 (64) Difference 3.86 6.42 8.12 9.96 N/A N/A N/A N/A N/A N/A IM Global Fixed Income (MF) Median -3.45 3.53 -1.52 7.19 1.61 7.82 13.86 -1.53 7.30 2.53 Real Estate P .' Intercontinental 9.93 (70) 14.10 (37) 18.21 (10) 12.21 (60) 16.52 (54) N/A N/A N/A N/A N/A NCREIF ODCE 10.68 (65) 12.39 (71) 12.47 (68) 11.77 (66) 18.03 (41) 6.14 (52) -36.09 (54) 3.73 (46) 17.84 (58) 17.49 (55) Difference -0.75 1.71 5.74 0.44 -1.51 N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) Median 11.87 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 ASB RE 12.01 (49) 12.85 (51) 13.20 (50) N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 10.68 (65) 12.39 (71) 12.47 (68) 11.77 (66) 18.03 (41) 6.14 (52) -36.09 (54) 3.73 (46) 17.84 (58) 17.49 (55) Difference 1.33 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 11.87 12.90 13.18 12.90 16.62 6.39 -34.80 3.23 18.34 18.08 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 Non -Core Fixed income reported on IRR page 25 1 BOGDAHN 1/4,..,......... GROUP 1 Performance Review Total Fund As of June 30. 2015 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 1700 2800 24 00 1400 20.00 • 0 00 • 0 • 0 • 0 1600 • • O O 1200 800 • O O � c • 8 00 • w re 5 00 0 • 0 4 00 O • O 1 2.00 0.00 O • • -4.00 -1.00 -8.00 -4.00 -12.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Total Fund 0.32 (19) 6.10 (11) 4.99 (13) 11.21 (17) 11.85 (18) 9.01 (21) 11.13 (43) • Total Fund 10.82 (35) 13.73 (31) 17.43 (58) -0.15 (61) 9.37 (66) 0.75 (62) • Total Fund Policy 0.37 (17) 4.96 (41) 4.43 (28) 10.44 (36) 11.10 (41) 9.02 (21) 11.55 (25) • Total Fund Policy 10.72 (38) 12.75 (48) 18.46 (39) 2.14 (17) 9.96 (50) 0.46 (65) Median -0.18 4.68 3.50 10.00 10.74 8.23 10.83 Median 10.15 12.60 17.93 0.32 9.93 1.59 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar - 2014 Dec -2013 Total Fund 2.58 (39) 3.09 (18) -1.04 (48) 3.72 (43) 1.78 (44) 6.08 (32) Total Fund Policy 2.16 (73) 2.37 (44) -0.51 (19) 3.85 (36) 1.68 (52) 5.39 (60) All Public Plans -Total Fund Median 2.44 2.25 -1.13 3.63 1.70 5.60 THE 26 ( BOGDAHN GROUP r .2 z z Performance Review Total Fund As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years `- 24.0 0 n All Public Plans -Total Fund Median 2 44 L.4O 1 111 THF 26 r \ BOGDAHN G ROUP . t_ Performance Review Total Fund As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 24.0 _lc 0.0 Performance • 0 0 0 0 0 0 4 9 di • • • 1 16.0 e e 25. 0 O O O •• • O O O , � 8.0 soo O O O . • • • • • a i 0.0 ._i c E 75.0 p,. + Under m Performance ce -8.0 100 0 -- r t -- 7 -- - t - - -- T -8.0 0.0 8 0 16.0 24 0 9/10 3111 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 Total Fund Policy ( %) Total Period 5 -25 25- Median Median -75 75 -95 • Over Performance • Under Performance Count Count Count Count • Total Fund 20 3 (15 %) 5 (25 %) 9 (45 %) 3 (15 %) 4, Earliest Date X Latest Date 0 Total Fund Policy 20 5 (25 %) 11 (55 %) 4 (20 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 12.21 11.70 ... 11 84 • E 11.40 O e. 11.47 E 11.10 • m 11 10 0 0 re . 10.80 10.73 10.36 10.50 i t t 4.80 5.00 5.20 5 40 5 60 5.80 7.6 7.7 7.8 7 9 8.0 8.1 8.2 Risk (Standard Deviation %) Risk (Standard Deviation %) Retum Standard Return Standard Deviation Deviation • Total Fund 11.85 5.67 • Total Fund 11.13 8.09 • Total Fund Policy 11.10 5.07 • Total Fund Policy 11.55 7.70 - Median 10.74 5.57 - Median 10.85 8.12 Historical Statistics - 3 Years Tracking P Down Information Sharpe Downside g Market Market Alpha Beta Error Capture Capture Ratio Ratio Risk Total Fund 1.03 107.38 109.68 - 0.42 0.69 2.00 1.11 2.37 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 2.10 1.00 2.10 Historical Statistics - 5 Years `: e . .� . ,. _ ..F Tracking UP Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund 1.15 102.53 113.52 -0.82 - 0.30 1.34 1.04 4.40 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.46 1.00 3.89 THE 27 BOGDAHN `- GROUP. Performance Review Anchor All Cap Value As of June 30. 2015 Peer Group Analysis - IM U.S. All Cap Value Equity (SA +CF) 28.00 52 00 24.00 44.00 36 00 20.00 0 0 0 2800 16.00 •O • O e 20.00 1200 c c > > • 1 Zi re w 0 800 4.00 • 0 i 4.00 0 0 ® - 4.00 000 0 0 -12.00 • -4.00 -20.00 -8.00 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Anchor All Cap Value -1.73 (89) 2.64 (84) 1.89 (76) 13.09 (60) 16.01 (70) 13.12 (53) 16.36 (63) • Anchor All Cap Value 17.85 (24) 22.80 (68) 23.97 (75) 3.61 (16) 12.47 (41) N/A • Russell 3000 Value 0.00 (49) 4.77 (64) 3.86 (50) 13.35 (58) 17.20 (53) 13.37 (42) 16.36 (63) • Russell 3000 Value 17.66 (28) 22.67 (69) 31.05 (18) -2.22 (61) 9.15 (71) 10.79 (94) Median -0.07 5.80 3.47 14.12 17.34 13.21 17.10 Median 15.40 26.39 27.72 -1.25 10.77 -3.46 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Anchor All Cap Value 0.01 (77) 4.43 (46) -0.73 (31) 5.58 (27) 3.80 (14) 8.33 (72) Russell 3000 Value -0.51 (87) 5.31 (28) -0.87 (35) 4.89 (49) 2.92 (32) 9.95 (39) IM U.S. All Cap Value Equity (SA +CF) Median 1.40 4.13 -1.35 4.86 2.08 9.57 THE 28 (�� BOGDAHN GROUP. Performance Review Anchor All Cap Value As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years - 300 00 `o v v GROUP. Performance Review Anchor All Cap Value As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years - 30.0 0.0 Y s - Over c A g 25.0 Performance ce • Y 25.0 • • • O U 20.0 r!* v 50.0 Q Q Q O O® O es 0 • e 0 15.0 o 'c ii 10.0 v Under Performance w 5.0 100.0 5.0 10.0 15.0 no 25.0 30.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 Russell 3000 Value ( %) Total Period 5 - 25 25 Median Median - 75 75 - 95 • Over Performance • Under Performance Count Count Count Count • Anchor All Cap Value 12 1 (8 %) 8 (67 %) 3 (25 %) 0 (0 %) Earliest Date X Latest Date 0 Russell 3000 Value 20 0 (0 %) 9 (45 %) 5 (25 %) 6 (30 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 17.60 17.40 - 17.16 0 e 17.10 c 16.72 16.80 m 16.28 m • 15.84 • 16.50 • O 15.40 16.20 ' 7.40 7.60 7.80 8.00 8.20 8.40 8.60 9.48 10.27 11.06 11.85 12.64 13.43 14.22 15.01 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Anchor All Cap Value 16.01 8.39 • Anchor All Cap Value 16.36 10.88 • Russell 3000 Value 17.20 7.73 • Russell 3000 Value 16.36 13.38 - Median 17.34 7.85 - Median 17.10 14.29 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Anchor All Cap Value 3.23 90.28 82.84 1.12 -0.34 1.85 0.87 3.72 Russell 3000 Value 0.00 100.00 100.00 0.00 N/A 1.84 1.00 4.45 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Anchor All Cap Value 4.01 88.08 72.35 3.02 -0.06 1.50 0.80 5.04 Russell 3000 Value 0.00 100.00 100.00 0.00 N/A 1.27 1.00 6.86 THE 29 C BOGDAHN GROUP. i t Performance Review Vanguard 500 Index Signal (VFIAX) As of June 30. 2015 Peer Group Analysis - IM S &P 500 Index (MF) 23.00 38.00 20 00 32.00 •O 1 00 00 00 26.00 0 0 14 00 O O 20 00 •0 •O 14.00 11 00 c re 8.00 300 • 0 0 0 2.00 •O 500 -4.00 2.00 G O -10.00 -1.00 -16.00 - 4.00 Oct- Oct- Oct- Oct- Oct- Oct - 2013 2012 2011 2010 2009 2008 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2014 2013 2012 2011 2010 2009 • Vanguard 500 Index Signal (VFIAX) 0.28 (9) 6.27 (1) 7.46 (1) 15.67 (2) 17.28 (2) 14.12 (11) 17.26 (5) • Vanguard 500 Index Signal (VFIAX) 9.65 (7) 9.31 (3) 9.99 (18) 0.99 (16) 0.16 (4) 6.80 (10) • S &P 500 Index 0.28 (11) 6.22 (3) 7.42 (2) 15.70 (1) 17.31 (1) 14.22 (1) 17.34 (1) • S &P 500 Index 9.73 (1) 9.34 (1) 0.20 (1) 1.14 (2) 0.16 (4) 6.91 (21) Median 0.17 5.87 6.93 15.16 16.77 13.70 16.77 Median 9.19 8.80 9.58 0.68 9.68 7.24 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Vanguard 500 Index Signal (VFIAX) 0.95 (2) 4.97 (2) 1.12 (4) 5.21 (10) 1.79 (8) 10.48 (13) S &P 500 Index 0.95 (2) 4.93 (4) 1.13 (2) 5.23 (3) 1.81 (3) 10.51 (5) IM S &P 500 Index (MF) Median 0.84 4.81 1.01 5.11 1.69 10.39 THE BO GDAHN 30 l.----- GROUP - __:__Y_______. T _ Performance Review Vanguard 500 Index Signal (VFIAX) As of June 30.2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking 5 Years p / o0 0 0 0 o o 0 8 8 o O 8 0 o 0 o 8 • • LL 30 0 �..� IM S &P 500 Index (MF) Median 0.84 4.81 1.01 5.11 1.b9 IV 3y 1 30 , THE BOGDAHN GROUP Performance Review Vanguard 500 Index Signal (VFIAX) As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years n ( �{� n o 0 n : 30.0 Over g Q o g g o 0 0 o 0 0 g 8 li 0 o g o 0 o e lJ 0 o U V C✓ Performance re 74 20.0 0 250 a C' to 50.0 _ .n .... ..- 0 10.0 - o v c ., : 75.0 •- ' .. - -:,, ° 0.0 .,, w• _ - Under o o Performance t T cc 100.0 o - 10.0 - 10.0 0.0 10.0 20.0 30.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 S &P 500 Index (%) 5 -25 25- Medlan Median -75 75 -95 Total Period Count Count Count Count • Over Performance Under Performance • Vanguard 500 Index Signal (VFIAX) 19 19 (100% 0 (0 %) 0 (0%) 0 (0 %) ▪ Earliest Date X Latest Date 0 S &P 500 Index 20 20 (100% 0 (0 %) 0 (0 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 1 n eo 7.60 _ n ao 17 . 40 O • 0 1 n 20 7.20 17.00 0 17.00 - e re 16.80 16.80 1 16. 16.60 8.42 8.43 8.44 11.89 1 1.90 1 1.91 11.92 Risk (Standard Deviation %) Risk (Standard Deviation %) Standard Standard Return Deviation Return Deviation • Vanguard 500 Index Signal (VFIAX) 17.28 8.43 • Vanguard 500 Index Signal (VFIAX) 17.26 11.91 O S &P 500 Index 17.31 8.43 • S &P 500 Index 17 34 11.90 Median 16.77 8.43 - Median 16.77 11.90 Historical Statistics - 3 Years Up Down Information Sharpe Downside Tracking Market Market Alpha Beta Risk Error Ratio Ratio Capture Capture Vanguard 500 Index Signal (VFIAX) 0.03 99.85 99.89 - 0.01 - 0.85 1 94 1 00 3.86 S &P 500 Index 0.00 100 00 100.00 0 00 N - 74 11 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Market Market Alpha Beta Risk Error Ratio Ratio Capture Capture Vanguard 500 Index Signal (VFIAX) 0.08 99.81 100.24 -0.09 - 97 1.40 1.00 6.18 S &P 500 Index 0 00 00 00 100.00 0.00 N A 1.41 1.00 6.15 THE 31 / 111 L i B OGDAHN GROUP 1 Performance Review DSM Large Cap Growth As of June 30. 2015 Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA +CF) 32 00 52 00 ' 2800 4400 2400 3600 • 0 20 00 ® 0 28 00 0 0 0 O O 0 16.00 0 20 00 0 • O 0 • • E c 12.00 ' 12.00 Z • m O 8.00 4.00 0 • 0 4.00 -4.00 • 0.00 0 -12.00 -4.00 -20.00 -8.00 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • DSM Large Cap Growth 2.43 (6) 15.40 (6) 18.33 (4) 21.62 (20) 20.24 (24) 17.13 (10) 20.69 (12) • DSM Large Cap Growth 17.22 (59) 19.76 (59) 35.68 (3) -0.82 (72) 17.48 (9) N/A • Russell 1000 Growth 0.12 (65) 8.94 (63) 10.56 (57) 18.46 (57) 17.99 (59) 14.81 (44) 18.59 (42) • Russell 1000 Growth 19.15 (38) 19.27 (65) 29.19 (38) 3.78 (29) 12.65 (36) -1.85 (38) Median 0.63 9.87 11.22 18.88 18.54 14.48 18.21 Median 18.02 20.39 27.52 1.36 11.30 -3.06 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 DSM Large Cap Growth 3.99 (48) 8.34 (5) 2.54 (15) 2.28 (92) -1.24 (91) 13.18 (6) Russell 1000 Growth 3.84 (51) 4.78 (58) 1.49 (39) 5.13 (34) 1.12 (43) 10.44 (60) IM U.S. Large Cap Growth Equity (SA +CF) Median 3.88 5.12 1.11 4.59 0.82 10.88 THE 32 i1f BO GDAHN L GROUP - - Performance Review DSM Large Cap Growth As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking 5 Years -- / Y 00 ^ 0 0 ^ - \ THE 32 ( ) BOGDAHN GROUP Performance Review DSM Large Cap Growth As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 30.0 Over c 0. 0 0 0 0 ▪ 25.0 Performance 0 ° i m 25.0 ° ° 0 ° 0 0 o 0 0 0 a 20 0 0 m 50.0 0 o y 15.0 0 ° j � i o_ ° U nder o 75. - I 10.0 0 M Performance 100.0 _ _. <... 5.0 10.0 15.0 20 0 25 0 30.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 Russell 1000 Growth (%) 5 -25 25- Medlan Median -75 75 -95 Total Period Count Count Count Count • Over Performance • Under Performance • DSM Large Cap Growth 15 11 (73 %) 3 (20 %) 1 (7 %) 0 (0 %) 4 Earliest Date X Latest Date 0 Russell 1000 Growth 20 0 (0 %) 18 (90 %) 2 (10 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 21 33 21.32 _. 20.54 • 20.50 • - • c 19.75 _ 19.68 • - 3 18.96 m 18.86 - 0 re re 18.17 • 18.04 -- t I t 17.22 6.72 7.04 7.36 7.68 8.00 8.32 8 64 8.96 9.28 12.00 12.50 13 00 13 50 14 00 14 50 15 00 15 50 Risk (Standard Deviatlon %) Risk (Standard Deviation %) Standard Return Standard Return Deviation Deviation • DSM Large Cap Growth 20.24 8.85 • DSM Large Cap Growth 20. 14.94 • Russell 1000 Growth 17.99 7.21 • Russell 1000 Growth 18.59 12.84 _ Median 18.54 7.87 - Median 18.21 13.72 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error g Market Market Alpha Ratio Ratio Beta Risk Capture Capture DSM Large Cap Growth 4. 110.42 105 30 0. 0.46 1.80 1.10 4.42 Russell 1000 Growth 0.00 100.00 . .3 NSA 1 JU 3 48 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside g Market Market Alpha Beta Error Capture Capture Ratio Ratio Risk DSM Large Cap Growth 4.19 107.82 101 67 0.68 0.47 1. 1.07 6.68 Russell 1000 Growth 0.00 100 00 100 00 0.00 N/A 1.45 1.00 6.10 THE 33 (i� 7, , BOGDAHN GROUP. Performance Review VG Mid -Cap Index (VMCIX) As of June 30. 2015 Peer Group Analysis - IM U.S. Mid Cap Core Equity (MF) 28.00 44 00 24.00 36.00 20.00 0 28.00 0 • 0 •0 16.00 20 00 0 0 • 12.00 12.00 E 0 7 Z • 0 y • 0 Q 8.00 4.00 0 4.00 - 4.00 0 0.00 -12.00 • 0 -4.00 - -20.00 -8.00 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • VG Mid -Cap Index (VMCIX) -1.16 (56) 9.79 (39) 8.54 (17) 17.06 (16) N/A N/A N/A • VG Mid -Cap Index (VMCIX) 15.89 (17) N/A N/A N/A N/A N/A • CRSP U.S. Mid Cap TR -1.18 (57) 9.94 (34) 8.68 (15) 17.17 (14) 19.66 (18) 13.89 (13) 18.51 (12) • CRSP U.S. Mid Cap TR 15.94 (16) ?8.08 (39) ?6.23 (53) -0.18 (23) 18.04 (8) -4.75 (52) Median -0.95 8.60 5.86 14.67 18.02 11.81 16.33 Median 11.82 ?7.62 26.44 -3.21 13.68 -4.62 . Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 VG Mid -Cap Index (VMCIX) 4.28 (36) 6.52 (31) -1.14 (17) 4.51 (36) 3.27 (33) 8.62 (55) CRSP U.S. Mid Cap TR 4.32 (35) 6.65 (27) - 1.15 (18) 4.53 (34) 3.30 (32) 8.63 (53) IM U.S. Mid Cap Core Equity (MF) Median 3.58 5.58 34 2.59 3.63 2.69 8.91 THE. L ---..‘r _ BOGDAHN GROUP Performance Review AF EuroPacific Gr R6 (RERGX) As of June 30. 2015 Peer Group Analysis - IM International Large Cap Growth Equity (MF) ∎- 36. '2n nn IM U S Mid Cap Core Equity (MF) Median 3.58 5.58 -2.59 3.63 2.69 8.91 1 THE 34 r , BOGDAHN GROUP Performance Review AF EuroPacific Gr R6 (RERGX) As of June 30. 2015 Peer Group Analysis - IM International Large Cap Growth Equity (MF) 36.00 zo 00 1 E >oa 28.00 1200 20.00 0 8 0 0 0 12.00 • • 400 0 • M . 400 re re 0.00 ©O 0 -4 00 -4.00 0 • -1200 $.00 -20.00 -12.00 28.00 -16.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • AF EuroPacific Gr R6 (RERGX) 1.12 (35) N/A N/A N/A N/A N/A N/A • AF EuroPacific Gr R6 (RERGX) N/A N/A N/A N/A N/A N/A • MSCI AC World ex USA 0.72 (60) 0.37 (92) -4.85 (91) 7.86 (68) 9.92 (72) 3.33 (80) 8.23 (83) • MSCI AC World ex USA 5.22 (33) 6.98 (67) 5.04 (73) 0.42 (42) 8.00 (43) 6.43 (14) Median 0.88 3.65 -1.42 8.79 10.94 4.53 9.19 Median 4.34 8.61 7.41 0.98 7.25 0.53 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 N/A N/A N/A N/A N/A AF EuroPacific Gr R6 (RERGX) N/A 4.81 (64) ' MSCI AC World ex USA 3.59 (74) -3.81 (87) -5.19 (73) 5.25 (15) 0.61 (28) IM International Large Cap Growth Equity (MF) Median 5.26 -1.87 -4.74 3.61 -0.60 5.51 \ THE 35 BOGDAHN L.--...? GROUP. 1 Performance Review WCM International (WCMIX) As of June 30. 2015 Peer Group Analysis - IM International Large Cap Growth Equity (MF) 20 00 36.00 1600 28.00 1200 20.00 0 0 8.00 0 0 0 12.00 4.00 ..... < . E O C O 4 ' ®0 O ce 0 00 -400 -4.00 0 -12.00 -8.00 -12.00 20.00 -16.00 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • WCM International (WCMIX) 0.98 (45) N/A N/A N/A N/A N/A N/A • WCM International (WCMIX) N/A N/A N/A N/A N/A N/A O MSCI AC World ex USA 0.72 (60) 0.37 (92) -4.85 (91) 7.86 (68) 9.92 (72) 3.33 (80) 8.23 (83) • MSCI AC World ex USA 5.22 (33) 16.98 (67) 15.04 (73) 10.42 (42) 8.00 (43) 6.43 (14) Median 0.88 3.65 -1.42 8.79 10.94 4.53 9.19 Median 4.34 18.61 17.41 10.98 7.25 0.53 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 mi WCM International (WCMIX) N/A N/A N/A N/A N/A N/A MSCI AC World ex USA 3.59 (74) - 3.81 (87) - 5.19 (73) 5.25 (15) 0.61 (28) 4.81 (64) IM International Large Cap Growth Equity (MF) Median 5.26 - 1.87 - 4.74 3.61 - 0.60 5.51 THE 36 1 BOGDAHN L---- GROUP Performance Review Schroders Core Fixed Income As of June 30. 2015 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 20 00 00 IM International Large Cap Growth Equity (MF) Median 5.26 -1.87 -4.74 3.61 -0.60 5.51 1 THE 36 r BO GDAHN L GROUP Performance Review Schroders Core Fixed Income As of June 30. 2015 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 8 00 20.00 17.00 6 00 • 14.00 11.00 4 OC 0 0 O 8.00 0 0 E p d ' 0 2 00 ce • • 71; ,-. ce O O O 5 .00 • • 1111 0 ilia 2.00 gos 0.00 • O -1. -2.00 -4.00 -7.00 Oct- Oct- Oct- Oct- Oct- Oct - -4.00 2013 2012 2011 2010 2009 2008 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2014 2013 2012 2011 2010 2009 • Schroders Core Fixed Income -0.84 (86) 2.11 (16) 2.34 (9) 3.21 (23) 2.48 (30) 3.29 (29) 3.42 (40) • Schroders Core Fixed Income 3.46 (29) 0.04 (32) 5.63 (49) 3.20 (71) 8.34 (47) 4.83 (12) 0 Schroders Core Fixed Income Policy -0.67 (62) 1.85 (39) 1.89 (35) 2.68 (51) 1.74 (74) 2.61 (74) 2.89 (75) • Schroders Core Fixed Income Policy 2.74 (59) 0.71 (78) 4.31 (85) 4.22 (22) 7.52 (77) 9.69 (82) Median -0.60 1.75 1.76 2.68 2.09 2.98 3.21 Median 2.88 0.27 5.58 3.60 8.28 1.52 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 1 Schroders Core Fixed Income 1.64 (20) 1.31 (8) 0.23 (14) 1.50 (39) 1.70 (16) 0.00 (76) Schroders Core Fixed Income Policy 1.32 (79) 1.20 (18) 0.03 (39) 1.62 (28) 1.20 (52) -0.14 (93) IM U.S. Intermediate Duration (SA +CF) Median 1.47 0.93 0.01 1.40 1.22 0.21 THE 37 ti J BOGDAHN ■GROUP. M 1 Performance Review Schroders Core Fixed Income As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years =- 12. 5 Y 0.0 Over c o • Q Performance • Q o 10.0 • 25.0 0 Q Q Q Q Q Q c v • c x 7.5 O a 4 2 50.0 0 0 Q Q Q 0 5.0 0 °" 75.0 Q Q Q 8 Q Q 0 0 0 Q Q Q Q Q Q Q Q Q Q Q • =Q* m v 2.5 K o X Under 100.0 L Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 • 0.0 0.0 2.5 5.0 7.5 10.0 12.5 Total Period 5 - 25 25 Median Median - 75 75 - 95 Schroders Core Fixed Income Policy ( %) Count Count Count Count • Schroders Core Fixed Income 20 3 (15 %) 9 (45 %) 8 (40 %) 0 (0 %) • Over Performance + Earliest Date X Latest Date 0 Schroders Core Fixed Income Policy 20 0 (0 %) 0 (0 %) 10 (50 %) 10 (50 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 2.86 3.60 _ 2.60 -.- 3.40 • e. . • c. c 2.34 c 120 m 2.08 m 3.00 • z ce 1.82 2.80 • 1.56 2.60 1.85 1.90 1.95 2.00 2.05 2.10 2.15 2.20 2.00 2.04 2.08 2.12 2.16 2.20 2.24 2.28 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Schroders Core Fixed Income 2.48 2.12 • Schroders Core Fixed Income 3.42 2.20 • Schroders Core Fixed Income Policy 1.74 1.92 • Schroders Core Fixed Income Policy 2.89 2.05 Median 2.09 1.98 Median 3.21 2.24 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Schroders Core Fixed Income 0.53 119.57 101.12 0.53 1.38 1.01 1.12 1.33 Schroders Core Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 0.81 1.00 1.24 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Schroders Core Fixed Income 0.64 115.60 110.78 0.31 0.82 1.44 1.08 1.17 Schroders Core Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.36 1.00 1.08 THE 38 (% BOGDAHN ` -�' GROUP Performance Review Schroders TIPS As of June 30. 2015 Peer Group Analysis - IM U.S. TIPS (SA +CF) `- 17.00 R nn ` " Capture Capture " " "" "° "' "' "" Schroders Core Fixed Income 0.64 115.60 110.78 0.31 0.82 1.44 1.08 1.17 Schroders Core Fixed Income Poli y 0.00 100.00 100.00 0.00 N/A 1.36 1.00 1.08 THE. 38 (� 1 BOGDAHN ` GROUP. t Performance Review Schroders TIPS As of June 30. 2015 Peer Group Analysis - IM U.S. TIPS (SA +CF) 6.00 17.00 i t 14.00 --{ 1 1 4. 00 1 1 11.00 O O -41 0 • 0 - 8.00 • 2.00 • i di 0 j 5.00 • ` 0 C � i 0.00 • • • 2.00 • re illiiii • 0 0 -1 00 • 0 -2.00 1 4 00 • AO- -7 . -4.00 -10.00 1 -6.00 3.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Schroders TIPS -0.23 (27) 0.04 (69) -1.87 (64) 0.92 (72) -0.52 (52) 1.31 (74) 2.57 (69) • Schroders TIPS 0.77 (71) -4.47 (32) 6.96 (79) 7.69 (74) 7.59 (90) 3.80 (90) 0 Barclays US Treasury US TIPS -1.06 (50) 0.32 (32) -1.73 (40) 1.31 (49) -0.76 (84) 2.21 (55) 3.29 (52) • Barclays US Treasury US TIPS 1.59 (40) -6.10 (71) 9.10 (43) 9.87 (31) 8.89 (76) 5.67 (62) Median -1.06 0.19 -1.79 1.25 -0.52 2.23 3.30 Median 1.54 -5.51 9.02 9.54 9.36 6.02 Comparative Performance ;. 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 I Schroders TIPS 1.41 (58) -1.12 (93) -1.91 (14) 2.96 (79) 0.99 (94) -1.20 (10) Barclays US Treasury US TIPS 1.42 (57) -0.03 (30) -2.04 (59) 3.81 (35) 1.95 (47) -2.00 (70) IM U.S. TIPS (SA +CF) Median 1.45 -0.16 -2.03 3,69 1.93 -1.97 THE 39 L. BOGDAHN GROUP. Performance Review Schroders TIPS As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 16 0.0 Over c Performance A o: • 12.0 m 25.0 0 a wl 8.0 • u 50.0 O 0 0 O O O 0 O O O 0 0 0 0 • ea•� c 4.0 • •u 75.0 0 0 ©© 0 0 0 O 0 0 0 0 0 0 IZ L a V) 0.0 • Under 100.0 1 Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 - 4.0 - 4.0 0.0 4.0 8.0 12.0 16.0 Total Period 5 - 25 25 Median Median - 75 75 - 95 Barclays US Treasury US TIPS ( %) Count Count Count Count • Schroders TIPS 19 0 (0 %) 0 (0 %) 5 (26 %) 14 (74 %) • Under Performance Earliest Date X Latest Date 0 Barclays US Treasury US TIPS 20 0 (0 %) 5 (25 %) 14 (70 %) 1 (5 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years -0.36 3.60 -0 .45 6 -0.54 • _ 7 330 O E -0.63 E 3 00 71, e -0.72 O lii ce 2 70 - 0.81 • -0.90 2.40 4.35 4.50 4.65 4.80 4.95 510 5.25 5.40 5.55 3.78 3.99 4.20 4.41 4.62 4.83 5.04 5.25 5.46 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Schroders TIPS -0.52 4.53 • Schroders TIPS 2.57 4.15 o Barclays US Treasury US TIPS -0.76 5.31 • Barclays US Treasury US TIPS 3.29 5.16 Median -0.52 5.22 Median 3.30 5.14 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beth Risk Capture Capture Schroders TIPS 1.72 70.72 70.69 0.02 0.11 -0.13 0.73 3.10 Barclays US Treasury US TIPS 0.00 100.00 100.00 0.00 N/A - 0.13 1.00 4.05 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Schroders TIPS 1.95 71.74 68.25 0.28 -0.39 0.68 0.69 2.49 Barclays US Treasury US TIPS 0.00 100.00 100.00 0.00 N/A 0.64 1.00 3.35 THE 40 ,,,_•••\-;, BOGDAHN ,., GROUP Performance Review PIMCO Div Income Fund (PDIIX) As of June 30. 2015 Peer Group Analysis - IM Global Fixed Income (MF) `- 30 00 aNw. c ar.... Schroders TIPS 1.95 7174 68.25 0.28 -0.39 0.68 0.69 2.49 Barclays US Treasury US TIPS 1 0.00 100.00 100. 0.00 N/A 0.64 1.00 3.35 THE 40 ( BOGDAHN c ---- ' GROUP. Airmit Performance Review ■ PIMCO Div Income Fund (PDIIX) As of June 30. 2015 Peer Group Analysis - IM Global Fixed Income (MF) 3 11.00 0.00 8 00 25.00 20.00 - s oa O O O • 15.00 zoo O . =MEM j P 118" Mir" ill O 0 10.00 - -1 00 E O � e m II. ce 0 5.00 -{ • -40o 0 0.00 J • -7 00 ■ -5.00 MI -10.00 -10.00 -13.00 -15.00 - 16.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2014 2013 2012 2011 2010 2009 • PIMCO Div Income Fund (PDIIX) -0.30 (11) 1.53 (5) -0.62 (28) 4.51 (5) 4.10 (6) 4.91 (7) N/A • PIMCO Div Income Fund (PDIIX) 6.09 (17) 0.35 (25) 6.25 (3) N/A N/A N/A O BofA Merrill Lynch Global Brd Mkt -1.26 (28) - 3.56 (53) - 6.30 (67) 0.20 (64) - 0.59 (73) 0.35 (69) 2.22 (61) • BofA Merrill Lynch Global Brd Mkt 1.45 (81) .2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84) 3.36 (58) Median -1.91 -3.45 -4.85 0.83 1.17 1.39 2.63 Median 3.53 1.52 7.19 1.61 7.82 3.86 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 PIMCO Div Income Fund (PDIIX) 3.36 (1) -1.48 (71) -2.12 (57) 4.18 (2) 2.47 (49) 1.52 (18) BofA Merrill Lynch Global Brd Mkt -1.70 (87) -0.64 (39) -2.84 (74) 2.41 (49) 2.45 (50) - (85) IM Global Fixed Income (MF) Median 0.08 -1.04 -1.64 2.39 2.42 0.64 THE 41 ( 1 BO GDAHN L- GROUP. I 1 Performance Review PIMCO Div Income Fund (PDIIX) As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years so Y o.o X • Over c w p Performance 0 u id n 25.0 c 6. O 0 0 0 LL X 50.0 0 0 0 O E 3.o a. 0 0 0 0 0 0 U E 75 0 0 0 0 O 0 0 0 > • 0.0 ce , - 411111.111111111110111116111.1.161110 - 211M6. --- 0 0 Under 100.0 1 ( t O Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 - -3.0 - 3.0 0.0 3.0 6.0 9.0 Total Period 5 - 25 25 Median Median - 75 75 - 95 BofA Merrill Lynch Global Brd Mkt ( %) Count Count Count Count pq • PIMCO Div Income Fund (PDIIX) 6 6 (100% 0 (0 %) 0 (0 %) 0 (0 %) • Over Performance + Earliest Date X Latest Date O BofA Merrill Lynch Global Brd Mkt 20 0 (0 %) 3 (15 %) 14 (70 %) 3 (15 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 6.00 280 4.00 ® - 2.60 E e, E 2.00 E 2.40 e. d ce 0.00 IX 2.20 0 -2.00 2.00 124 3.51 3.78 4.05 4.32 4.59 4.86 5.13 5.40 4.32 4.48 4.64 4. 4.96 5.12 5.28 5.44 5.60 Risk (Standard Deviation %) Risk (Standard Deviation %) Retum Standard Return Standard Deviation Deviation • PIMCO Div Income Fund (PDIIX) 4. 5.07 • PIMCO Div Income Fund (PDIIX) N/A N/A O BofA Merrill Lynch Global Brd Mkt -0.59 3.77 • BofA Merrill Lynch Global Brd Mkt 2.22 4.54 Median 1.17 4.34 Median 2.63 5.38 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture PIMCO Div Income Fund (PDIIX) 3.52 146.84 58.22 4.76 1.33 0.81 0.97 3.57 BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A -0.15 1.00 2.90 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture PIMCO Div Income Fund (PDIIX) N/A N/A N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A 0.49 1.00 3.04 THE 42 ( r BOGDAHN GROUP Performance Review Templeton Global Fund (FBNRX) As of June 30. 2015 Peer Group Analysis - IM Global Fixed Income (MF) 30 0:, 11 nn PIMCO Div Income Fund (PDIIX) N/A N/A N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Brd Mkt\ 0 00 100 00 100.00 0.00 N/A 0 49 1.00 3.04 THE 42 �� BO GDAHN GROUP Performance Review Templeton Global Fund (FBNRX) As of June 30. 2015 Peer Group Analysis - IM Global Fixed Income (MF) 11.00 30 00 8.00 25 00 5.00 20.00 0 0 0 2.00 0 15.00 • 0 • ® r 0 10.00 -1.00 ® 4 4 P'' K :.o- ..A4 • 5.00 • 0 0 - . 00 • 0 ,x • 0.00 -7.00 . O yo-_ -5.00 10.00 ,...1... n -10. -13.00 -1500 - 16.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep- Sep- Sep- Sep- Sep- Sep - QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR 2014 2013 2012 2011 2010 2009 • Templeton Global Fund (FBNRX) -0.24 (10) -1.59 (35) -1.51 (32) 2.86 (21) 4.53 (2) 3.15 (26) N/A • Templeton Global Fund (FBNRX) 6.35 (12) 3.52 (3) 3.25 (5) N/A N/A N/A O BofA Merrill Lynch Global Brd Mkt -1.26 (28) -3.56 (53) -6.30 (67) 0.20 (64) -0.59 (73) 0.35 (69) 2.22 (61) • BofA Merrill Lynch Global Brd Mkt 1.45 (81) 2.65 (64) 5.10 (88) 4.18 (9) 6.22 (84) 3.36 (58) Median -1.91 -3.45 -4.85 0.83 1.17 1.39 2.63 Median 3.53 1.52 7.19 1.61 7.82 3.86 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Templeton Global Fund (FBNRX) 0.26 (45) -1.60 (73) 0.08 (15) 2.68 (40) 0.76 (95) 2.71 (1) BofA Merrill Lynch Global Brd Mkt -1.70 (87) -0.64 (39) - 2.84 (74) 2.41 (49) 2.45 (50) -0.49 (85) IM Global Fixed Income (MF) Median 0.08 -1.04 - 1.64 2.39 2.42 0.64 THE 43 C ( BOGDAHN GROUP. 1 Performance Review Templeton Global Fund (FBNRX) As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years K - 9 m 0.0 0 0 0 i cc Over c z Performance O K 0 0 to 0 a 6.0 m 25.0 0 0 c X® o 0 O O 5 0.0 LL 3.0 a • 0 0 0 0 O c 0 75.0 0 O O 0 0 0 0 c 0.0 T.' O .2. Under 100.0 a Performance 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9i14 6/15 - -3.0 - 3.0 0.0 3.0 6.0 9.0 Total Period 5 - 25 25 Median Median - 75 75 - 95 BofA Merrill Lynch Global Brd Mkt ( %) Count Count Count Count • Templeton Global Fund (FBNRX) 6 5 (83 %) 1 (17 %) 0 (0 %) 0 (0 %) • Over Performance + Earliest Date X Latest Date • BofA Merrill Lynch Global Brd Mkt 20 0 (0 %) 3 (15 %) 14 (70 %) 3 (15 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 6.00 2.80 4.00 • - 2.60 Il E 2.00 '- 2.40 Z K 0.00 2.20 • -2.00 2.00 3.61 3.80 3.99 4.18 4.37 4.56 4.75 4.94 4.32 4.48 4.64 4.80 4.96 5.12 5.28 5.44 5.60 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Templeton Global Fund (FBNRX) 4.53 4.77 • Templeton Global Fund (FBNRX) N/A N/A • BofA Merrill Lynch Global Brd Mkt -0.59 3.77 • BofA Merrill Lynch Global Brd Mkt 2.22 4.54 - Median 1.17 4.34 - Median 2.63 5.38 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beth Risk Capture Capture Templeton Global Fund (FBNRX) 4.20 114.53 21.86 5.01 1.21 0.94 0.68 2.94 BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A -0.15 1.00 2.90 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Templeton Global Fund (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A 0.49 1.00 3.04 THE 44 ( BOGDAHN N _- GROUP. Performance Review Intercontinental As of June 30. 2015 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 50 00 25 00 Templeton Global Fund (FBNRX) N/A N/A N/A N/A N/A N/A N/A N/A BofA Merrill Lynch Global Brd Mkt 0.00 100.00 100.00 0.00 N/A 0.49 1.00 3.04 lo THE 44 or BOGDAHN GROUP. Performance Review Intercontinental As of June 30. 2015 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 25 00 50 00 23 00 35 2 oil 20 00 20.00 • 0 O O0 0 •0 1 00 ,.t 5.00 O 0 14 t12 0 0 01 , 10.00 c x Q et -25.00 800 Id : -40.00 5.00 O 0 - 55.00 2.00 - 70.00 -1.00 55.00 4.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Intercontinental 3.37 (63) 9.93 (70) 14.09 (53) 14.03 (40) 14.69 (37) 14.46 (37) 13.72 (74) • Intercontinental 14.10 (37) 18.21 (10) 12.21 (60) 16.52 (54) N/A N/A 0 NCREIF Fund Index -ODCE 3.91 (51) 10.68 (65) 14.51 (52) 13.40 (71) 12.88 (72) 12.79 (66) 14.26 (72) • NCREIF Fund Index - ODCE 12.39 (71) 12.47 (68) 11.77 (66) 18.03 (41) 6.14 (52) 36.09 (54) Median 3.95 11.87 14.88 13.73 13.57 13.44 15.45 Median 12.90 13.18 12.90 16.62 6.39 34.80 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Intercontinental 1.18 (100) 5.10 (13) 3.79 (26) 2.42 (90) 1.89 (81) 5.35 (3) NCREIF Fund Index -ODCE 3.40 (59) 3.02 (65) 3.46 (43) 2.76 (67) 2.52 (62) 3.12 (53) IM U.S. Open End Private Real Estate (SA +CF) Median 3.56 3.50 3 35 3.15 2.81 3.22 THE 45 r Li......0- BOGDAHN GROUP. Performance Review Intercontinental As of June 30. 2015 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 18.0 m 0.0 Over c e Performance • = 16.0 O o e 25.0 y 14.0 �� 1 50.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C. • o. 0 '43 120 . 75 0 Q 0 0 0 0 0 0 0 c Under • Performance • 10.0 100.0 .1 _. t 10.0 12.0 14.0 16.0 18.0 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 6/15 NCREIF Fund Index -ODCE ( %) Total Period 5 -25 25- Median Median -75 75 -95 • Over Performance 0 Under Performance Count Count Count Count • Intercontinental 10 0 (0 %) 8 (80 %) 0 (0 %) 2 (20 %) Earliest Date X Latest Date 0 NCREIF Fund Index -ODCE 20 0 (0 %) 4 (20 %) 16 (80 %) 0 (0 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 15.12 15.96 14.49 • 15.39 • 13.86 - 14.82 . -, e. e 13.23 J • m 14.25 ._ 0 • 12.60 -j • 13.68 - • 11.97 13.11 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1.44 1.80 2.16 2.52 2.88 3.24 3.60 3.96 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Intercontinental 14.69 3.03 • Intercontinental 13.72 3 45 O NCREIF Fund Index -ODCE 12.88 0.95 • NCREIF Fund Index -ODCE 14.26 1.64 Median 13.57 1.83 - Median 15.45 3 00 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 3.27 113.69 N/A 0.52 0.52 2.16 1.10 0.00 NCREIF Fund Index -ODCE 0.00 100. NA 0.00 N/A 2 40 1.00 0.00 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Intercontinental 4.27 96.70 N/A 1.81 - 0.10 2.05 0.83 0.84 NCREIF Fund Index - ODCE 0.00 100 00 N/A 0.00 N/A 2.34 1.00 0.00 \� THE 46 BOGDAHN k ° GROUP Performance Review ASB RE As of June 30. 2015 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 5000 Error marRez marRez r+i Ratio Ratio meta Risk Capture Capture Intercontinental -N 4.27 96.70 N/A 1.81 -0.10 2.05 0.83 0.84 NCREIF Fund Index -ODCE 0.00 100.00 N/A 0.00 N/A 2.34 1.00 0.00 THE 46 ( � BOGDAHN GROUP Y____ T Performance Review ASB RE As of June 30. 2015 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 2600 5000 23.00 3500 20.00 2000 •O •O O 1700 • 5.00 0 • O 1400 O 0 0 -10.00 } . E • C 2 11.00 0 1 CL N -25.00 8.00 0 -40.00 5.00 • 0 -55.00 200 -70.00 -1.00 -400 -85.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • ASB RE 5.19 (11) 12.01 (49) 16.31 (46) 15.21 (27) N/A N/A N/A • ASB RE 12.85 (51) 13.20 (50) N/A N/A N/A N/A • NCREIF Fund Index -ODCE 3.91 (51) 10.68 (65) 14.51 (52) 13.40 (71) 12.88 (72) 12.79 (66) 14.26 (72) ® NCREIF Fund Index -ODCE 12.39 (71) 12.47 (68) 11.77 (66) 18.03 (41) 6.14 (52) 36.09 (54) Median 3.95 11.87 14.88 13.73 13.57 13.44 15.45 Median 12.90 13.18 12.90 16.62 6.39 34.80 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 ASB RE 2.77 (90) 3.62 (48) 3.84 (24) 2.65 (77) 2.74 (55) 3.06 (61) NCREIF Fund Index -ODCE 3.40 (59) 3.02 (65) 3.46 (43) 2.76 (67) 2.52 (62) 3.12 (53) IM U.S. Open End Private Real Estate (SA +CF) Median 3.56 3.50 3.35 3.15 2.81 3.22 THE. 47 � BOGDAHN G ROUP 1 Historical Benchmark Hybrid Compositions Total Fund As of June 30, 2015 Total Fund Policy Total Fixed Income Policy 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 3 Year U.S. Treasury Note 30.00 Citigroup 3 Month T -Bill Index 5.00 Jul -2007 Barclays Intermediate Aggregate Index 100.00 Jul -2007 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 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 Russell 1000 Growth Index 20.00 Feb -2010 S &P 500 Index 10.00 Barclays Intermediate Aggregate Index 35.00 Barclays Intermediate Aggregate Index 83.33 Barclays U.S. Treasury: U.S. TIPS Index 16.67 Barclays U.S. Treasury: U.S. TIPS Index 5.00 MSCI EAFE Index 10.00 Jun -2009 Russell 3000 Index 50.00 Barclays Intermediate Aggregate Index 25.00 Barclays U.S. TIPS 1 -10 Year 5.00 MSCI EAFE Index 10.00 Citigroup 3 Month T -Bill Index 5.00 STW Fixed Income Policy NCREIF Fund Index -Open End Diversified Core (EW) 5.00 Allocation Mandate Weight ( %) 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 -Open End Diversified Core (EW) 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 -Open End Diversified Core (EVV) 10.00 THE 48 I. BOGDAHN GROUP Historical Benchmark Hybrid Compositions Total Fund As of June 30, 2015 Total Equity Policy Total Domestic Equity Policy Weight (%) Allocation Mandate Weight (J ) Allocation Mandate g ( ) Jan -1926 NCREIF Fund Index -Open End Diversified Core (EW) 10.00 THE 48 ( � BOGDAHN GROUP Historical Benchmark Hybrid Compositions Total Fund As of June 30, 2015 Total Equity Policy Total Domestic Equity Policy Allocation Mandate Weight ( %) Allocation Mandate Weight ( %) Jan -1926 Jan -1926 S &P 500 Index 100.00 S &P 500 Index 100.00 Jul -2007 Jul -2007 Russell 3000 Index 85.00 Russell 3000 Index 100.00 MSCI EAFE Index 15.00 Oct -2007 Oct -2007 Russell 3000 Value Index 40.00 MSCI EAFE Index 15.00 Russell 1000 Growth Index 40.00 S &P 500 Index 15.00 S &P 500 Index 20.00 Russell 3000 Value Index 35.00 Russell 1000 Growth Index 35.00 Jun -2009 Russell 3000 Index 100.00 Jun -2009 Russell 3000 Index 83.33 MSCI EAFE Index 16.67 Feb -2010 Russell 3000 Index 75.00 MSCI AC World ex USA 25.00 Total International Equity Policy Allocation Mandate Weight ( %) Jan -1970 MSCI EAFE Index 100.00 Feb -2010 MSCI AC World ex USA 100.00 THE 49 r BOGDAHN GROUP, Complian Checklist Total Fund Boynton Beach FF As of June 30, 2015 Total Fund Compliance: Yes No N/A 1. The Total Plan return equaled or exceeded the 7.8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 4. Total foreign securities were less than 25% of the total plan assets at market. ✓ Equity Compliance: Yes No N/A 1. Total equity returns equaled or exceeded the benchmark over the trailing three and five year periods. ✓ 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. The total equity allocation was less than 70% of the total plan assets at market. ✓ Fixed Income Compliance: Yes No N/A 1. Total fixed income returns equaled or exceeded the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. All separately managed fixed income investments have a minimum rating of investment grade or higher. ✓ Anchor ACV VG 500 Index DSM LCG VG Mid -Cap WCMIX Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A I 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. ✓ ✓ ✓ ✓ V STW Core Fl STW TIPS PIMCO* Templeton* RERGX Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. ✓ ✓ ✓ ✓ ✓ 2. Manager ranked within the top 40th percentile once over the last four quarters. ✓ ✓ ✓ ✓ 1 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. ✓ ✓ ✓ ✓ ✓ *Data available for three year period only due to inception date. THE 50 BO GDAHN J GROUP . _ . Compliance Checklist Total Fund As of June 30, 2015 ASB RE Intercontinental LBC Crescent Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes` No N/A Yes No N/A ✓ V ✓ ✓ I * Data available for three year period only due to inception date. THE 50 1 BOGDAHN GROUP. . Compliance Checklist Total Fund As of June 30, 2015 ASB RE Intercontinental LBC Crescent Manager Compliance: Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A 1. Manager outperformed the index over the trailing three and five year periods. ✓ ✓ ✓ ✓ 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. *Data available for three year period only due to inception date. THE 51 r BOGDAHN GROUP. 1 Disclosures Total Fund As of June 30, 2015 • Returns prior to 9/30/2009 are gross of fees. TH E. 52 ( � B OGDAHN GROUP. The Bogdahn Group Your Service Team Contact Information West THE 52 L--of BOGDAHN " GROUP. The Bogdahn Group Your Service Team Contact Information Donna Sullivan Dave West Department: Performance Measurement Department: Consultant Team ti Title: Senior Performance Analyst N'. lit Department: Title: Senior Consultant •X ' Direct Phone: 863- 904 -0856 Direct Phone: 863- 904 -0858 Email: Donnas @boRdahnsrouo.com Email: DaveW @bosdahngroup.com Misha Bell Service Team Contact Information Department: Consultant Team Address: 4901 Vineland Road, Suite 600 Orlando, Florida 32811 t Title: Internal Consultant V Phone: 866 - 240 -7932 ?' Direct Phone: 863 -594 -1425 Service Team Group Email: ServiceTeam003 Cc@bogdahngroup.com Email: Mishab @bogdahnsrouo.com 1111. r \ BOGDAHN ~'' GROUP. 53 r Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non - systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the product's performance. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager's performance and the risk -free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value -added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. R- Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R- Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. I 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. II 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. 54 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. 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. 54 Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time - weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S &P Indices constitutes an offer of services in jurisdictions where S &P Indices does not have the necessary licenses. All information provided by S &P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non - infringement, merchantability and fitness 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. 55 THE r BOGDAHN GROUP. simplifying your investment and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago Cleveland Detroit Milwaukee Pittsburgh