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HomeMy WebLinkAboutDocumentation_Pension_General_Tab 04_11/05/2018<CBDoc TenantId="2" EntityTypeId="3100" EntityId="105" DocumentTypeId="1" EffectiveDate="09/30/2018" Interval="3" Description="Quarterly Report" /> Investment Performance Review Period Ending September 30, 2018 Village of Tequesta General Employees' Retirement Plan 3r d Q u a r t e r 2 0 1 8 M a r k e t E n v i r o n m e n t Pa g e 1  Ma r k e t r e t u r n s w e r e m i x e d a c r o s s m a j o r e q u i t y a n d f i x e d i n c o m e i n d i c e s f o r th e 3 r d q u a r t e r o f 2 0 1 8 w i t h m a n y t h e m e s f r o m t h e 2 n d q u a r t e r r e p e a t i n g du r i n g t h e c u r r e n t p e r i o d . B r o a d d o m e s t i c e q u i t y i n d i c e s p u s h e d h i g h e r o n co n t i n u e d s t r e n g t h i n b o t h e c o n o m i c an d c o r p o r a t e e a r n i n g s d a t a . C o r p o r a te ea r n i n g s c o n t i n u e t o b e n e f i t f r o m f i s c a l s t i m u l u s t a i l w i n d s i n t h e f o r m o f th e l a t e 20 1 7 t a x r e f o r m . I n t e r n a t i o n a l i n d i c e s u n d e r p e r f o r m e d d o m e s t i c i n d i c e s du r i n g th e p e r i o d , p o s t i n g m o r e m u t e d r e t u r n s i n U S d o l l a r ( U S D ) t e r m s , a s i n v e s t o rs we i g h e d r e l a t i v e l y s o f t e c o n o m i c d a t a , a s t r e n g t h e n i n g U S D a n d g e o p o l i t i ca l co n c e r n s , e s p e c i a l l y a r o u n d g l o b a l t r a d e r e l a t i o n s . F i x e d i n c o m e r e t u r n sw e r e fl a t f o r t h e q u a r t e r a s i n t e r e s t r a t e s c o n t i n u e d t o r i s e . D o m e s t i c s t o c k s r os e a s co n c e r n s a r o u n d o n g o i n g m o n e t a r y p o l i c y t i g h t e n i n g b y t h e F e d e r a l R e s e r v e (F e d ) a n d a n e s c a l a t i n g t r a d e w a r b e t w e e n t h e U S a n d C h i n a w e r e n o t su b s t a n t i a l e n o u g h t o d a m p e n i n v e s t o r e n t h u s i a s m a r o u n d t h e o n g o i n g st r e n g t h o f t h e U S e c o n o m y . T h e U S s t o c k m a r k e t r e p r e s e n t e d b y t h e R u s s e l l 30 0 0 I n d e x r e t u r n e d 7 . 1 % a n d 1 7 . 6 % f o r t h e q u a r t e r a n d 1 - y e a r p e r i o d re s p e c t i v e l y .  In t e r n a t i o n a l e q u i t y r e t u r n s f i n i s h e d t h e q u a r t e r s l i g h t l y p o s i t i v e w i t ht h e M S C I AC W I e x U S I n d e x r e t u r n i n g 0 . 7 % . D ev e l o p e d m a r k e t s t o c k s p u s h e d h i g h e r th r o u g h t h e p e r i o d , h o w e v e r , r e l a t i v e l y s u b d u e d e c o n o m i c g r o w t h a n d o n g o in g po l i t i c a l a n d t r a d e u n c e r t a i n t y t e m p e r e d r e t u r n s v e r s u s d o m e s t i c e q u i t i es . T h e de v e l o p e d m a r k e t M S C I E A F E I n d e x g a i n e d 1 . 4 % d u r i n g t h e q u a r t e r . Em e r g i n g m a r k e t s t o c k s s t r u g g l e d i n co m p a r i s o n , p o s t i n g n e g a t i v e r e t u r n sf o r th e p e r i o d , a s t r a d e t e n s i o n s g r e w b e t w e e n t h e U S a n d C h i n a . I n a d d i t i o n , a st r e n g t h e n i n g U S D c a u s e d h e a d w i n d s f o r mo s t i n t e r n a t i o n a l m a r k e t s , b u t ca u s e d p a r t i c u l a r d i f f i c u l t i e s f o r e m er g i n g m a r k e t c o u n t r i e s t h a t i s s u e de b t i n US D . T h e M S C I E m e r g i n g M a r k e t s I n d e x p o s t e d a s m a l l d e c l i n e o f - 1 . 1 % du r i n g t h e 3 r d q u a r t e r . T h e r e l a t i v e o u t p e r f o r m a n c e o f d e v e l o p e d m a r k e t s ca n al s o b e s e e n i n t h e 1 - y e a r p e r i o d w i t h t h e M S C I E A F E a n d M S C I E m e r g i n g Ma r k e t s i n d i c e s r e t u r n i n g 2 . 7 % a n d - 0 . 8 % r e s p e c t i v e l y .  In t e r e s t r a t e s o n t h e U S T r e a s u r y Y i e l d C u r v e c o n t i n u e d t h e i r y e a r - t o - d a t er i s e du r i n g t h e 3 r d q u a r t e r a s i n v e s t o r e x p e c t a t i o n s f o r f u r t h e r F e d t i g h t e n i n go f mo n e t a r y p o l i c y i n c r e a s e d d u r i n g t h e p e r i o d . T h e y i e l d c u r v e d i d f l a t t e n s li g h t l y as i n t e r e s t r a t e s h a d t h e g r e a t e s t i n c r e a s e i n s h o r t - t e r m m a t u r i t i e s , b u t ov e r a l l , th e s h i f t i n r a t e s w a s f a i r l y c o n s i s t e n t t h r o u g h o u t t h e e n t i r e c u r v e . T h e F ed d i d im p l e m e n t a n o t h e r i n t e r e s t r a t e i n c r e a s e f o l l o w i n g t h e i r S e p t e m b e r m e e t in g ci t i n g t h e c o n t i n u e d s t r e n g t h o f t h e U S e c o n o m y a n d s t a b l e i n f l a t i o n . T h e br o a d m a r k e t B l o o m b e r g B a r c l a y s U S A g g r e g a t e I n d e x w a s f l a t f o r t h e q u a r t e r re t u r n i n g 0 . 0 % a n d i s s l i g h t l y n e g a t i v e o v e r t h e 1 - y e a r p e r i o d r e t u r n i n g - 1. 2 % . Co r p o r a t e i s s u e s r e b o u n d e d f o l l o w i n g u n d e r p e r f o r m a n c e d u r i n g t h e f i r s t ha l f o f th e y e a r a n d w e r e t h e o n l y i n v e s t m e n t g r a d e s e c t o r t o p o s t a p o s i t i v e r e t u r n du r i n g t h e q u a r t e r , a s t h e y b e n e f i t t e d f r o m t i g h t e n i n g c r e d i t s p r e a d s a n d st r o n g in v e s t o r d e m a n d . So u r c e : I n v e s t m e n t M e t r i c s The Market Environment Major Market Index Performance As of September 30, 2018 0. 5 % 1. 0 % -0 . 1 % -0 . 8 % -0 . 6 % 0. 0 % 3.6%5.0%7.4%7.1%7.7% -1 . 1 % 1.4 % 0. 7 % -2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 3- M o n t h T - B i l l Bb g B a r c l a y s C o r p I G Bb g B a r c l a y s M B S Bb g B a r c l a y s U S T I P S Bb g B a r c l a y s U S G o v t Bb g B a r c l a y s U S A g g Ru s s e l l 2 0 0 0 Ru s s e l l M i d C a p Ru s s e l l 1 0 0 0 Ru s s e l l 3 0 0 0 S& P 5 0 0 MS C I E m e r g M k t s MS C I E A F E MS C I A C W x U S Qu a r t e r P e r f o r m a n c e 1.6 % -1 . 2 % -0 . 9 % 0. 4 % -1 . 6 % -1 . 2 % 15.2%14.0%17.8%17.6%17.9% -0 . 8 % 2. 7 % 1. 8 % -5 . 0 % 0 . 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 3- M o n t h T - B i l l Bb g B a r c l a y s C o r p I G Bb g B a r c l a y s M B S Bb g B a r c l a y s U S T I P S Bb g B a r c l a y s U S G o v t Bb g B a r c l a y s U S A g g Ru s s e l l 2 0 0 0 Ru s s e l l M i d C a p Ru s s e l l 1 0 0 0 Ru s s e l l 3 0 0 0 S& P 5 0 0 MS C I E m e r g M k t s MS C I E A F E MS C I A C W x U S 1- Y e a r P e r f o r m a n c e Pa g e 2 So u r c e : I n v e s t m e n t M e t r i c s The Market Environment Do m e s t i c E q u i t y S t y l e I n d e x P e r f o r m a n c e As of September 30, 2018  US e q u i t y i n d e x r e t u r n s w e r e p o s i t i v e a cr o s s t h e s t y l e a n d c a p i t a l i z a t i o n sp e c t r u m d u r i n g t h e 3 r d q u a r t e r of 2 0 1 8 . U S e q u i t y m a r k e t s w e r e p u s h e d hi g h e r b y t h e o n g o i n g s t r e n g t h i n U S e c o n o m i c d a t a a n d c o r p o r a t e e a r n i n g s . Po s i t i v e d a t a r e l e a s e s i n G D P , u n e m p l o y m e n t , r e t a i l s a l e s , c o n s u m e r co n s u m p t i o n a n d i n v e s t o r s e n t i m e n t hi g h l i g h t e d t h e c o n t i n u e d h e a l t h o f t he U S ec o n o m y . C o r p o r a t e e a r n i n g s r e l ea s e d d u r i n g t h e q u a r t e r w e r e a l s o im p r e s s i v e . E a r n i n g s r e p o r t e d f o r S & P 5 0 0 c o m p a n i e s w e r e u p o v e r 2 0 % o n a ye a r - o v e r - y e a r b a s i s f o r t h e s e c o n d s t r a i g h t q u a r t e r a s c o r p o r a t e p r o f i t s co n t i n u e d t o b e n e f i t f r o m t h e n e w t a x c o d e . T h e c u r r e n t e x p a n s i o n i n U S eq u i t y m a r k e t s n o w m a r k s t h e l o n g e s t b u l l m a r k e t i n h i s t o r y . W h i l e t h e p o s i ti v e ec o n o m i c d a t a d r o v e r e t u r n s t h r o u g h t h e q u a r t e r , t r a d e n e g o t i a t i o n s w i t h Ch i n a br o k e d o w n w i t h b o t h t h e U S a n d C h i n a i n s t i t u t i n g s e v e r a l r o u n d s o f n e w t a r i ff s du r i n g t h e p e r i o d . C u r r e n t l y t h e U S i s i m p o s i n g t a r i f f s o n $ 2 5 0 b i l l i o n o f Ch i n e s e i m p o r t s w i t h C h i n a p l a c i n g t a r i f f s o n $ 1 1 0 b i l l i o n w o r t h o f g o o d s . Fu r t h e r a c t i o n h a s b e e n t h r e a t e n e d b y b o t h c o u n t r i e s . Wh i l e n e g o t i a t i o n s w i t h Ch i n a h a v e b e e n u n s u c c e s s f u l , p r o g r e s s w a s m a d e i n t h e r e n e g o t i a t i o n o f t h e No r t h A m e r i c a n F r e e T r a d e A g r e e m e n t ( N A F T A ) a n d d i s c u s s i o n s w i t h t h e Eu r o p e a n U n i o n ( E U ) a p p e a r t o b e m o v i n g a h e a d p r o d u c t i v e l y .  Du r i n g t h e q u a r t e r , l a r g e c a p s t o c k s o u t p e r f o r m e d m i d a n d s m a l l c a p e q u i t i es ac r o s s g r o w t h , v a l u e a n d c o r e i n d i c e s . T h e l a r g e c a p R u s s e l l 1 0 0 0 I n d e x re t u r n e d 7 . 4 % f o r t h e q u a r t e r v e r s u s a 3 . 6 % r e t u r n f o r t h e R u s s e l l 2 0 0 0 I n d e x. Th e R u s s e l l 1 0 0 0 b e n e f i t t e d f r o m s t r o n g p e r f o r m a n c e f r o m s o m e o f i t s l a r g e st ex p o s u r e s . A p p l e I n c , M i c r o s o f t C o r p a n d A m a z o n . c o m I n c a l o n e m a k e u p ov e r 1 0 % o f t h e i n d e x a n d p o s t e d q u a r t e r l y r e t u r n s o f 2 2 . 4 % , 1 6 . 4 % a n d 17 . 8 % r e s p e c t i v e l y . T h o s e s a m e t h r e e st o c k s h a v e g a i n e d 4 8 . 7 % , 5 6 . 3 % a n d 10 8 . 4 % o v e r t h e 1 - y e a r p e r i o d . T h i s s t r o n g p e r f o r m a n c e f r o m s o m e o f t h e in d e x ’ s l a r g e s t c o n s t i t u e n t s h a s h e l pe d l a r g e c a p s o u t p e r f o r m s m a l l c a p s ov e r th e 1 - y e a r p e r i o d a s w e l l w i t h t h e R u s s e l l 1 0 0 0 r e t u r n i n g 1 7 . 8 % o v e r t h e tr a i l i n g y e a r w h i l e t h e R u s s e l l 2 0 0 0 p o s t e d a s t i l l s o l i d r e t u r n o f 1 5 . 2 % .  Gr o w t h s t o c k s o u t p e r f o r m e d v a l u e s t o c k s a c r o s s t h e m a r k e t c a p s p e c t r u m du r i n g t h e 3 r d q u a r t e r . T h e l a r g e c a p R u s s e l l 1 0 0 0 G r o w t h I n d e x w a s t h e b e s t pe r f o r m i n g s t y l e i n d e x f o r t h e p e r i o d r e t u r n i n g a n o t a b l e 9 . 2 % f o r t h e q u a r te r . Th e o u t p e r f o r m a n c e o f g r o w t h i n d i c e s r e l a t i v e t o v a l u e i n d i c e s i s a l s o e v i de n t ov e r t h e 1 - y e a r p e r i o d a s g r o w t h i n d i c e s c o n t i n u e t o s h o w s i g n i f i c a n t ou t p e r f o r m a n c e r e l a t i v e t o t h e i r v a l u e c o u n t e r p a r t s . T h e r e t u r n s f o r g r o wt h in d i c e s m o r e t h a n d o u b l e t h e r e t u r n s o f t h e c o r r e s p o n d i n g v a l u e i n d i c e s o v er th e l a s t 1 2 m o n t h s . G r o w t h b e n c h m a r k s b e n e f i t t e d f r o m l a r g e r e x p o s u r e s t o mo r e c y c l i c a l n a m e s w i t h i n t h e i n f o r m a t i o n t e c h n o l o g y , c o n s u m e r di s c r e t i o n a r y , h e a l t h c a r e a n d i n d u s t r i a l s s e c t o r s . T h e y a l s o b e n e f i t t e df r o m un d e r w e i g h t s t o m o r e d e f e n s i v e s e c to r s s u c h a s R E I T s a n d u t i l i t i e s . 5.5% 3. 6 % 1. 6 % 7.6%5.0% 3. 3 % 9.2%7.4%5.7%8.9%7.1%5.4% 0. 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % 1 0 . 0 % 20 0 0 G r o w t h 20 0 0 I n d e x 20 0 0 V a l u e Mi d C a p G r o w t h Mi d C a p I n d e x Mi d C a p V a l u e 10 0 0 G r o w t h 10 0 0 I n d e x 10 0 0 V a l u e 30 0 0 G r o w t h 30 0 0 I n d e x 30 0 0 V a l u e Qu a r t e r P e r f o r m a n c e - R u s s e l l S t y l e S e r i e s 21.1%15.2% 9. 3 % 21.1% 14 . 0 % 8. 8 % 26.3%17.8% 9. 5 % 25.9%17.6% 9. 5 % 0. 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 2 5 . 0 % 3 0 . 0 % 20 0 0 G r o w t h 20 0 0 I n d e x 20 0 0 V a l u e Mi d C a p G r o w t h Mi d C a p I n d e x Mi d C a p V a l u e 10 0 0 G r o w t h 10 0 0 I n d e x 10 0 0 V a l u e 30 0 0 G r o w t h 30 0 0 I n d e x 30 0 0 V a l u e 1- Y e a r P e r f o r m a n c e - R u s s e l l S t y l e S e r i e s Pa g e 3  Bo t h S & P D o w J o n e s I n d i c e s a n d M S C I m a d e c h a n g e s t o t h e G l o b a l I n d u s t r y Cl a s s i f i c a t i o n S t a n d a r d ( G I C S ) s e c t o r c o n f i g u r a t i o n s o f t h e i r i n d i c e s , cr e a t i n g a ne w G I C S s e c t o r c l a s s i f i c a t i o n c a l l e d C o m m u n i c a t i o n S e r v i c e s w h i c h r e p l ac e d th e T e l e c o m m u n i c a t i o n s s e c t o r o n S e p t e m b e r 2 8 , 2 0 1 8 . T h e C o m m u n i c a t i o n Se r v i c e s s e c t o r i s c o m p r i s e d o f c o m p a n i e s i n t h e T e l e c o m m u n i c a t i o n s s e c t or , as w e l l a s c e r t a i n c o m p a n i e s f o r m e r l y c l a s s i f i e d a s C o n s u m e r D i s c r e t i o n a ry an d I n f o r m a t i o n T e c h n o l o g y . A s a r e s u l t , t h e s e c t o r , w e n t f r o m a w e i g h t i n g of ab o u t 2 % o f t h e R u s s e l l 1 0 0 0 I n d e x t o a l m o s t 1 0 % p o s t r e c l a s s i f i c a t i o n . No t a b l e n a m e s n o w c l a s s i f i e d u n d e r C o m m u n i c a t i o n S e r v i c e s i n c l u d e N e t f l ix , Al p h a b e t , F a c e b o o k a n d D i s n e y . T h i s i s j u s t t h e s e c o n d c h a n g e t o t h e G I C S cl a s s i f i c a t i o n s s i n c e 1 9 9 9 .  Se c t o r p e r f o r m a n c e w a s b r o a d l y p o s i t i v e a c r o s s l a r g e c a p s e c t o r s f o r t h e 3 rd qu a r t e r . T e n o f e l e v e n s e c t o r s h a d p o s i t i v e r e t u r n s f o r t h e q u a r t e r w i t h f o ur ou t p a c i n g t h e R u s s e l l 1 0 0 0 I n d e x r e t u r n. T h e c o n s u m e r d i s c r e t i o n a r y s e c t or co n t i n u e s t o d o w e l l o n t h e b a c k o f s t r o n g r e t a i l s a l e s a n d i n c r e a s e d c o n s u m er sp e n d i n g , g a i n i n g 7 . 6 % f o r t h e p e r i o d . H e a l t h c a r e a n d t e c h n o l o g y s t o c k s in c r e a s e d 1 4 . 3 % a n d 1 2 . 5 % d u r i n g t h e q u a r t e r r e s p e c t i v e l y , w i t h c o m p a n i e si n bo t h s e c t o r s r e p o r t i n g s t r o n g e a r n i n g s. I n d u s t r i a l s b e n e f i t t e d f r o m c o n ti n u e d ec o n o m i c s t r e n g t h r e t u r n i n g 9 . 7 % . T h e la r g e s t d e t r a c t o r s f o r t h e q u a r t e r we r e th e m a t e r i a l s , r e a l e s t a t e a n d e n e r g y s e c t o r s w h i c h r e t u r n e d - 0 . 1 % , 0 . 6 % a nd 0. 9 % r e s p e c t i v e l y . O v e r t h e t r a i l i n g 1 - y e a r p e r i o d , a l l l a r g e c a p a l l s e c t or s w e r e po s i t i v e . T h e i n f o r m a t i o n t e c h n o l o g y a n d c o n s u m e r d i s c r e t i o n a r y s e c t o r sw e r e th e b e s t p e r f o r m e r s , r e t u r n i n g o v e r 3 0 % o v e r t h e l a s t 1 2 m o n t h s , a n d s i x o f el e v e n s e c t o r s h a v e r e t u r n s o v e r 1 0 % f o r t h e y e a r .  Qu a r t e r l y r e s u l t s f o r s m a l l c a p s e c t o r s w e r e g e n e r a l l y l o w e r r e l a t i v e t o t he i r la r g e c a p i t a l i z a t i o n c o u n t e r p a r t s . N i n e o f e l e v e n s e c t o r s h a d p o s i t i v e r et u r n s du r i n g t h e p e r i o d w i t h s i x o f e l e v e n e c o n o m i c s e c t o r s o u t p a c i n g t h e R u s s e l l 20 0 0 I n d e x r e t u r n f o r t h e q u a r t e r . E n e r g y , c o n s u m e r s t a p l e s a n d r e a l e s t a t e po s t e d n e g a t i v e r e t u r n s f o r t h e p e r i o d r e t u r n i n g - 2 . 9 % , - 1 . 4 % a n d - 0 . 5 % re s p e c t i v e l y . C o m m u n i c a t i o n s s e r v i c e s a n d h e a l t h c a r e w e r e t h e b e s t pe r f o r m e r s r e t u r n i n g 1 2 . 6 % a n d 7 . 7 % . O v e r t h e t r a i l i n g 1 - y e a r p e r i o d , a l l el e v e n s e c t o r s p o s t e d g a i n s . H e a l t h c a r e s t o c k s w e r e t h e b e s t p e r f o r m e r s wi t h i n t h e R u s s e l l 2 0 0 0 f o r t h e t r a i l i n g y e a r r e t u r n i n g a s o l i d 2 9 . 1 % . Co m m u n i c a t i o n s e r v i c e s , t e c h n o l o g y , a n d c o n s u m e r d i s c r e t i o n a r y a l s o h a d pa r t i c u l a r l y r o b u s t r e t u r n s f o r t h e 1 - y e a r p e r i o d .  Us i n g S & P 5 0 0 s e c t o r v a l u a t i o n s a s a p r o x y f o r t h e m a r k e t , f o r w a r d P / E r a t i o s fo r s e v e n o f t h e e l e v e n G I C S s e c t o r s w e r e h i g h e r t h a n t h e i r l o n g - t e r m av e r a g e s a t q u a r t e r - e n d . U s i n g t h e s e h i s t o r i c a l P / E m e a s u r e s , t h e u t i l i t ie s , co n s u m e r d i s c r e t i o n a r y a n d r e a l e s t a t e s e c t o r s a p p e a r t h e m o s t e x t e n d e d . In co n t r a s t t h e f i n a n c i a l s , t e c h n o l o g y a n d h e a l t h c a r e s e c t o r s w e r e t r a d i n g at a di s c o u n t t o t h e i r l o n g - t e r m a v e r a g e P / E r a t i o s . The Market Environment GI C S S e c t o r P e r f o r m a n c e & ( S e c t o r W e i g h t ) As of September 30, 2018 So u r c e : M o r n i n g s t a r D i r e c t As a r e s u l t o f t h e G I C S c l a s s i f i c a t i o n c h a n g e s o n 9 / 2 8 / 2 0 1 8 a n d c e r t a i n a s s o c i a t e d r e p o r t i n g l i m i t a t i o n s , s e c t o r p e r f o r m a n c e r e pr e s e n t s b a c k w a r d l o o k i n g p e r f o r m a n c e f o r t h e p r i o r y e a r o f e a c h se c t o r ’ s c u r r e n t c o n s t i t u e n c y , post creation of the Communicat ion Se r v i c e s s e c t o r . 4. 1 % 4. 7 % 3. 7 % 37.3% 11 . 8 % 18.7% 8. 6 % 15.4% 3. 6 % 31.2% 13 . 3 % 2. 4 % 0. 6 % -0 . 1 % 12 . 5 % 9. 7 % 14.3% 4. 1 % 0. 9 % 5. 5 % 7. 6 % 1. 4 % -5 . 0 % 0 . 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 2 5 . 0 % 3 0 . 0 % 3 5 . 0 % 4 0 . 0 % Ut i l i t i e s ( 2 . 8 % ) Re a l E s t a t e ( 3 . 5 % ) Ma t e r i a l s ( 2 . 9 % ) In f o T e c h n o l o g y ( 2 0 . 6 % ) In d u s t r i a l s ( 1 0 . 0 % ) He a l t h C a r e ( 1 3 . 9 % ) Fi n a n c i a l s ( 1 3 . 9 % ) En e r g y ( 5 . 9 % ) Co n s u m e r S t a p l e s ( 6 . 4 % ) Co n s u m e r D i s c ( 1 0 . 3 % ) Co m m S e r v i c e s ( 9 . 7 % ) Ru s s e l l 1 0 0 0 Quarter 1-Year 6. 4 % 2. 9 % 5. 4 % 19.9%11.9%29.1% 7. 8 % 11.0%12.1%22.6%20.8% 3. 8 % -0 . 5 % 1. 1 % 5. 8 % 4. 4 % 7. 7 % 0. 9 % -2 . 9 % -1 . 4 % 3. 7 % 12.6% -5 . 0 % 0 . 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % 2 0 . 0 % 2 5 . 0 % 3 0 . 0 % Ut i l i t i e s ( 3 . 1 % ) Re a l E s t a t e ( 7 . 1 % ) Ma t e r i a l s ( 4 . 3 % ) In f o T e c h n o l o g y ( 1 3 . 8 % ) In d u s t r i a l s ( 1 5 . 2 % ) He a l t h C a r e ( 1 5 . 8 % ) Fi n a n c i a l s ( 1 8 . 0 % ) En e r g y ( 4 . 9 % ) Co n s u m e r S t a p l e s ( 2 . 7 % ) Co n s u m e r D i s c ( 1 2 . 2 % ) Co m m S e r v i c e s ( 3 . 0 % ) Ru s s e l l 2 0 0 0 Quarter 1-Year Pa g e 4 The Market Environment To p 1 0 I n d e x W e i g h t s & Q u a r t e r l y P e r f o r m a n c e f o r t h e R u s s e l l 1 0 00 & 2000 As of September 30, 2018 So u r c e : M o r n i n g s t a r D i r e c t To p 1 0 W e i g h t e d S t o c k s To p 1 0 W e i g h t e d S t o c k s Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Ap p l e I n c 3 . 9 7 % 2 2 . 4 % 4 8 . 7 % I n f o r m a t io n T e c h n o l o g y F i v e B e l o w I n c 0 . 3 1% 3 3 . 1 % 1 3 7 . 0 % C o n s u m e r D i s c r e t i o n a r y Mi c r o s o f t C o r p 3 . 1 5 % 1 6 . 4 % 5 6 . 3 % I n f o rm a t i o n T e c h n o l o g y E t s y I n c 0 . 2 7 % 2 1 . 8 % 2 0 4 . 4 % C o n s u m e r D i s c r e t i o n a r y Am a z o n . c o m I n c 2 . 9 6 % 1 7 . 8% 1 0 8 . 4 % C o n s u m e r D i s c r et i o n a r y I n t e g r a t e d De v i c e T e c h n o l o g y I n c 0 . 2 7 % 4 7 . 5 % 76.9% Information Technology Be r k s h i r e H a t h a w a y I n c B 1 . 5 1 % 1 4 . 7% 1 6 . 8 % F i n a n c i a l s L i v a N o v a P L C 0 . 27 % 2 4 . 2 % 7 6 . 9 % H e a l t h C a r e Fa c e b o o k I n c A 1 . 4 2 % - 1 5 . 4 % - 3 . 8 % C o mm u n i c a t i o n S e r v i c e s H a e m o n e t i c s Co r p 0 . 2 6 % 2 7 . 8 % 1 5 5 . 4 % H e a l t h C a r e JP M o r g a n C h a s e & C o 1 . 3 7 % 8 . 9 % 2 0 . 7% F i n a n c i a l s T e l a d o c H e a l t h I n c 0 . 25 % 4 8 . 8 % 1 6 0 . 5 % H e a l t h C a r e Jo h n s o n & J o h n s o n 1. 3 5 % 1 4 . 6 % 9 . 1 % H e a l t h C a r e L i g a n d P h a r m a c e u t i c a l s I n c 0 . 2 5 % 3 2 . 5 % 1 0 1 . 6 % H e a l t h C a r e Al p h a b e t I n c C l a s s C 1 . 3 2 % 7 . 0 % 2 4 . 4% C o m m u n i c a t i o n S e r v i c e s H u b S p o t I n c 0 . 2 4 % 2 0 . 4 % 7 9 . 6 % I n f o rmation Technology Al p h a b e t I n c A 1 . 3 1 % 6 . 9 % 2 4 . 0 % C o m m u n i ca t i o n S e r v i c e s P r i m e r i c a I n c 0. 2 3 % 2 1 . 3 % 4 9 . 2 % F i n a n c i a l s Ex x o n M o b i l C o r p 1 . 3 1 % 3 . 8 % 7 . 9 % E ne r g y H e a l t h E q u i t y I n c 0 . 2 2 % 2 5 . 7 % 8 6 .7% Health Care To p 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) To p 1 0 P e r f o r m i n g S t o c k s ( b y Q u a r t e r ) Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Ad v a n c e d M i c r o D e v i c e s I n c 0 . 1 0 % 10 6 . 1 % 1 4 2 . 3 % I n f o r m a t i o n T e c h n o l o gy C a r e D x I n c 0 . 0 4 % 1 3 5 . 7 % 6 7 9 . 7 % H e a l t h C a r e Sq u a r e I n c A 0 . 1 0 % 6 0 . 6 % 2 4 3 . 7 % I n f o r m at i o n T e c h n o l o g y R e a t a P h a r m a c eu t i c a l s I n c A 0 . 0 7 % 1 3 3 . 8 % 1 6 2 . 9 % H e a l t h C a r e Pa y c o m S o f t w a r e I n c 0 . 0 3 % 5 7 . 2 % 1 0 7 . 3% I n f o r m a t i o n T e c h n o l o g y I n v i t a e C o r p 0 . 0 5 % 1 2 7 . 6 % 7 8 . 5 % H e a l t h C a r e Tw i l i o I n c A 0 . 0 2 % 5 4 . 0 % 1 8 9 . 0 % I n f o r m at i o n T e c h n o l o g y R i g N e t I n c 0 . 0 1% 9 7 . 6 % 1 8 . 3 % E n e r g y At l a s s i a n C o r p o r a t i o n P L C A 0 . 0 3 % 53 . 8 % 1 7 3 . 5 % I n f o r m a t i o n T e c h n o l o gy T a n d e m D i a b e t e s C a r e I n c 0 .1 0 % 9 4 . 6 % 4 8 6 . 8 % H e a l t h C a r e Mo l i n a H e a l t h c a r e I n c 0 . 0 3 % 5 1 . 8 % 1 1 6 . 3 % H e a l t h C a r e H e a l t h I n s u r a n c e I n n o v a t i o n s I n c 0 . 03 % 9 0 . 6 % 3 2 5 . 2 % F i n a n c i a l s De x C o m I n c 0 . 0 5 % 5 0 . 6 % 1 9 2 . 4 % H e a l t h C ar e F u n k o I n c C l a s s A 0 . 0 1 % 8 8 . 8 % N / A C o n s u m e r D i s c r e t i o n a r y Ma t c h G r o u p I n c 0 . 0 1 % 4 9 . 5% 1 4 9 . 7 % C o m m u n i c a t i o n S e r v i c e s L S B I n d u s t rie s I n c 0 . 0 1 % 8 4 . 5 % 2 3 . 2 % M a t e r i a l s Fo r t i n e t I n c 0 . 0 5 % 4 7 . 8 % 1 5 7 . 4 % I n f o r m at i o n T e c h n o l o g y V i k i n g T h e r a p eu t i c s I n c 0 . 0 4 % 8 3 . 6 % 8 1 2 . 0 % H e a l t h C a r e IA C / I n t e r A c t i v e C o r p 0 . 0 6 % 4 2 . 1 % 8 4 . 3% C o m m u n i c a t i o n S e r v i c e s R a P h a r ma c e u t i c a l s I n c 0 . 0 1 % 81 . 8 % 2 3 . 9 % H e a l t h C a r e Bo t t o m 1 0 P e r f o r m i n g S t oc k s ( b y Q u a r t e r ) B o tt o m 1 0 P e r f o r m i n g S t oc k s ( b y Q u a r t e r ) Ru s s e l l 1 0 0 0 W e i g h t 1- Q t r Re t u r n 1- Y e a r Re t u r n Se c t o r R u s s e l l 2 0 0 0 W e i g h t 1- Q t r Re t u r n 1-Year Return Sector Flo o r & D e c o r H o l d i n g s I n c 0 . 0 1 % - 38 . 8 % - 2 2 . 5 % C o n s u m e r D i s c r e t i o n a ry V i t a l T h e r a p i e s I n c 0 . 0 0 % - 9 6 . 0 % - 9 4 . 5 % H e a l t h C a r e Tw i t t e r I n c 0 . 0 7 % - 3 4 . 8 % 6 8 . 7 % C o m m un i c a t i o n S e r v i c e s G T x I n c 0 . 0 0 % - 8 9. 7 % - 8 1 . 4 % H e a l t h C a r e IP G P h o t o n i c s C o r p 0 . 0 2 % - 2 9 . 3 % - 1 5 . 7% I n f o r m a t i o n T e c h n o l o g y A m p i o Ph a r m a c e u t i c a l s I n c 0 . 0 0 % -7 6 . 9 % - 1 6 . 9 % H e a l t h C a r e Vi s t e o n C o r p 0 . 0 1 % - 2 8 . 1 % - 2 4 . 9 % C o n s um e r D i s c r e t i o n a r y I n n o v a t e B i o ph a r m a c e u t i c a l s I n c 0 . 0 1 % - 7 1 . 0 % - 2 . 4 % H e a l t h C a r e Zil l o w G r o u p I n c A 0 . 0 1 % - 2 6 . 0 % 1 0 . 1 % C o m m u n i c a t i o n S e r v i c e s Z i o n O i l & G a s I n c 0 . 0 0 % - 6 8 . 4 % - 6 2 . 5 % E n e r g y Zil l o w G r o u p I n c C 0 . 0 2 % - 2 5 . 1 % 1 0 . 0 % C o m m u n i c a t i o n S e r v i c e s E n d o l o g ix I n c 0 . 0 1 % - 6 6 . 3 % - 5 7 . 2 % H e a l t h C a r e We s t e r n D i g i t a l C o r p 0 . 0 6 % - 2 3 . 7 % -3 0 . 4 % I n f o r m a t i o n T e c h n o l o g y L a n n et t C o I n c 0 . 0 1 % - 6 5 . 1 % - 7 4 . 3 % H e a l t h C a r e Wy n n R e s o r t s L t d 0 . 0 5 % - 2 3 . 7 % - 1 3 . 3 % Co n s u m e r D i s c r e t i o n a r y M a i d e n H ol d i n g s L t d 0 . 0 1 % - 6 2 . 6 % - 6 1 . 1 % F i n a n c i a l s Ex t r a c t i o n O i l & G a s I n c 0 . 0 0 % - 23 . 1 % - 2 6 . 6 % E n e r g y D i e b o l d N i x d o r f In c 0 . 0 2 % - 6 2 . 3 % - 8 0 . 1 % I n formation Technology Te s l a I n c 0 . 1 3 % - 2 2 . 8 % - 2 2 . 4 % C o n s u m er D i s c r e t i o n a r y S e a r s H o l d i n g s Co r p 0 . 0 0 % - 5 9 . 2 % - 8 6 . 7 % C onsumer Discretionary Pa g e 5 So u r c e : M S C I G l o b a l I n d e x M o n i t o r ( R e t u r n s a r e N e t )  Br o a d i n t e r n a t i o n a l e q u i t y r e t u r n s w e r e m i x e d f o r t h e q u a r t e r . M o s t d e v e l op e d ma r k e t s w e r e p o s i t i v e i n l o c a l c u r r e n c y a n d U S D t e r m s w h e r e a s e m e r g i n g ma r k e t s w e r e n e g a t i v e i n b o t h l o c a l c u r r e n c y a n d U S D t e r m s . P e r f o r m a n c e wa s l a r g e l y d r i v e n b y t h e s a m e c a t a l y s t s a s t h e U S e q u i t y m a r k e t s f o r t h e se c o n d s t r a i g h t q u a r t e r . W e s a w g l o b a l m a c r o e c o n o m i c d a t a s l o w , b u t r e m a i n ge n e r a l l y p o s i t i v e t h r o u g h t h e p e r i o d , w i t h r e t u r n s b e i n g t e m p e r e d b y g l o ba l tr a d e t e n s i o n s a n d o n g o i n g p o l i t i c a l un c e r t a i n t y . T h e U S D c o n t i n u e d t o st r e n g t h e n a g a i n s t m o s t c u r r e n c i e s f o r t h e p e r i o d a s r e l a t i v e l y s t r o n g U S ec o n o m i c f u n d a m e n t a l s a n d t h e c o n t i n u e d d i v e r g e n c e i n g l o b a l m o n e t a r y po l i c y h u r t U S i n v e s t o r s i n i n t e r n a t i o n a l m a r k e t s . T h e M S C I A C W I e x U S I n d e x ga i n e d 1 . 5 % i n l o c a l c u r r e n c y t e r m s a n d 0 . 7 % i n U S D t e r m s d u r i n g t h e 3 r d qu a r t e r . R e t u r n s o v e r t h e 1 - y e a r p e r i o d a r e m o d e s t l y p o s i t i v e i n b o t h l o c a l cu r r e n c y a n d U S D t e r m s w i t h t h e M S C I A C W I e x U S r e t u r n i n g 4 . 5 % a n d 1 . 8 % re s p e c t i v e l y .  Th i r d q u a r t e r r e s u l t s f o r d e v e l o p e d m a r k e t i n t e r n a t i o n a l i n d i c e s w e r e p o si t i v e in l o c a l c u r r e n c y t e r m s a n d U S D t e r m s w i t h t h e M S C I E A F E I n d e x r e t u r n i n g 2. 4 % a n d 1 . 4 % r e s p e c t i v e l y . R e t u r ns w e r e d a m p e n e d f o r U S i n v e s t o r s a s co n t i n u e d s t r e n g t h i n t h e U S D p u s h e d r e t u r n s l o w e r . D e v e l o p e d m a r k e t s w e r e pu s h e d h i g h e r b y b r o a d l y p o s i t i v e , b u t s l o w i n g , g l o b a l e c o n o m i c a n d e a r n i ng s da t a d e s p i t e s e v e r a l s i g n i f i c a n t p o l i t i c a l e v e n t s i n E u r o p e d u r i n g t h e q u ar t e r . Co n c e r n s o v e r a “ n o d e a l ” B r e x i t a n d w o r r i e s o v e r a p e n d i n g b u d g e t a p p r o v a l in I t a l y w e i g h e d o n r e t u r n s , w h i l e m a r k e t s w e r e e n c o u r a g e d b y p r o g r e s s i n tr a d e n e g o t i a t i o n s b e t w e e n t h e U S a n d t h e e u r o z o n e a n d s i g n s o f c o n t i n u e d po l i t i c a l s t a b i l i t y i n J a p a n . T h e M S C I E A F E I n d e x r e t u r n e d 5 . 1 % a n d 2 . 7 % f o r th e l a s t t w e l v e m o n t h s i n l o c a l c u r r e n c y a n d U S D t e r m s r e s p e c t i v e l y .  Em e r g i n g m a r k e t s u n d e r p e r f o r m e d r e l a t iv e t o d e v e l o p e d m a r k e t s f o r t h e 3 r d qu a r t e r , p o s t i n g a f l a t r e t u r n i n l o c a l c u r r e n c y t e r m s t h a t w a s e x a c e r b a t e db y th e r i s i n g U S D . T h e M S C I E m e r g i n g M a r k e t s I n d e x r e t u r n e d 0 . 0 % a n d - 1 . 1 % in l o c a l c u r r e n c y a n d U S D t e r m s r e s p e c t i v e l y . R e t u r n s i n e m e r g i n g m a r k e t s we r e t h e h u r t b y t h e d e t e r i o r a t i o n i n t r a d e n e g o t i a t i o n s b e t w e e n t h e U S a n d Ch i n a f o l l o w e d b y s e v e r a l r o u n d s o f n e w t a r i f f s e n a c t e d b y b o t h c o u n t r i e s . Em e r g i n g m a r k e t s t o c k s w e r e a l s o n e g a t i v e l y a f f e c t e d b y r i s i n g U S i n t e r e s t ra t e s c o u p l e d w i t h a n a p p r e c i a t i n g U S D . M a n y e m e r g i n g m a r k e t c o u n t r i e s a n d co m p a n i e s i s s u e d e b t d e n o m i n a t e d i n U S D a n d t h e c o m b i n a t i o n o f h i g h e r in t e r e s t r a t e s a n d a r e l a t i v e l y w e a k e r l o c a l c u r r e n c y c a n p u t s t r e s s o n t h e ba l a n c e s h e e t s o f t h e s e b o r r o w e r s , e s p e c i a l l y t h o s e h e a v i l y d e p e n d e n t o n ex t e r n a l c a p i t a l . T h i s w a s p a r t i c u l a r l y p r o b l e m a t i c f o r T u r k e y , A r g e n t i na a n d So u t h A f r i c a d u r i n g t h e 3 r d q u a r t e r w it h A r g e n t i n a h a v i n g t o e x p e d i t e t h e i r re q u e s t f o r a n e m e r g e n c y b a i l o u t o f $ 5 0 b i l l i o n f r o m t h e W o r l d M o n e t a r y F u n d. In p o s i t i v e n e w s , M e x i c o a n d t h e U S m a d e p r o g r e s s t o w a r d t h e r e n e g o t i a t i o n of N A F T A . O n e y e a r r e t u r n s f o r t h e M S C I E m e r g i n g M a r k e t I n d e x w e r e 2 . 7 % in l o c a l c u r r e n c y t e r m s a n d - 0 . 8 % i n U S D t e r m s . The Market Environment In t e r n a t i o n a l a n d R e g i o n a l M a r ke t I n d e x P e r f o r m a n c e ( C o u n t r y C o unt)As September 30, 2018 5.6% -1 . 2 % 1.8% 0. 0 % 4.4% 1. 2 % 2.4%2.1% 1. 5 % 4.8% -1 . 8 % -1 . 6 % -1 . 1 % 2.3% 0. 8 % 1. 4 % 1. 3 % 0. 7 % -4 . 0 % - 2 . 0 % 0 . 0 % 2 . 0 % 4 . 0 % 6 . 0 % 8 . 0 % EM L a t i n A m e r ( 5 ) EM A s i a ( 9 ) EM E M E A ( 1 0 ) Em e r g i n g M k t ( 2 4 ) Pa c i f i c ( 5 ) Eu r o p e & M E ( 1 6 ) EA F E ( 2 1 ) WO R L D x U S ( 2 2 ) AC W o r l d x U S ( 4 6 ) Qu a r t e r P e r f o r m a n c e USD Local Currency 4.8% 1. 9 % 5.6%2.7%10.7%2.1%5.1%5.1%4.5% -9 . 1 % 1. 0 % -2 . 2 % -0 . 8 % 8.2% -0 . 2 % 2.7%2.7% 1. 8 % -1 0 . 0 % - 5 . 0 % 0 . 0 % 5 . 0 % 1 0 . 0 % 1 5 . 0 % EM L a t i n A m e r ( 5 ) EM A s i a ( 9 ) EM E M E A ( 1 0 ) Em e r g i n g M k t ( 2 4 ) Pa c i f i c ( 5 ) Eu r o p e & M E ( 1 6 ) EA F E ( 2 1 ) WO R L D x U S ( 2 2 ) AC W o r l d x U S ( 4 6 ) 1- Y e a r P e r f o r m a n c e USD Local Currency Pa g e 6 The Market Environment US D o l l a r I n t e r n a t i o n a l I n d e x A t t r i b u t i o n & C o u n t r y D e t a i l As of September 30, 2018 So u r c e : M o r n i n g s t a r D i r e c t , M S C I G l o b a l I n d e x M o n i t o r ( R e t u r n s a r e N e t i n U S D ) As a r e s u l t o f t h e G I C S c l a s s i f i c a t i o n c h a n g e s o n 9 / 2 8 / 2 0 1 8 a n d c e r t a i n a s s o c i a t e d r e p o r t i n g l i m i t a t i o n s , s e c t o r p e r f o r m a n c e r e pr e s e n t s b a c k w a r d l o o k i n g p e r f o r m a n c e f o r t h e p r i o r y e a r o f e a c h se c t o r ’ s c u r r e n t c o n s t i t u e n c y , post creation of the Communicat ion Se r v i c e s s e c t o r . MS C I - E A F E M S C I - A C W I x U S Q u a r t e r 1 - Y e a r Co u n t r y W e i g h t W e i g h t R e t u r n R e t u r n Ja p a n 2 4 . 6 % 1 6 . 9 % 3 . 7 % 1 0 . 2 % Un i t e d K i n g d o m 1 7 . 5 % 1 2 . 0 % - 1 . 7 % 2 . 9 % Fr a n c e 1 1 . 2 % 7 . 7 % 2 . 8 % 4 . 2 % Ge r m a n y 9 . 4 % 6 . 5 % - 0 . 6 % - 5 . 4 % Sw i t z e r l a n d 8 . 3 % 5 . 7 % 7 . 3 % 1 . 6 % Au s t r a l i a 6 . 8 % 4 . 7 % - 0 . 9 % 4 . 4 % Ho n g K o n g 3 . 5 % 2 . 4 % - 1 . 0 % 2 . 9 % Ne t h e r l a n d s 3 . 3 % 2 . 3 % - 1 . 5 % - 1 . 6 % Sp a i n 3 . 0 % 2 . 0 % - 2 . 4 % - 9 . 7 % Sw e d e n 2 . 7 % 1 . 9 % 7 . 0 % - 3 . 3 % It a l y 2 . 3 % 1 . 6 % - 4 . 5 % - 8 . 9 % De n m a r k 1 . 7 % 1 . 2 % 2 . 3 % - 4 . 2 % Si n g a p o r e 1 . 3 % 0 . 9 % 2 . 2 % 6 . 9 % Fin l a n d 1 . 1 % 0 . 7 % 3 . 2 % 1 0 . 3 % Be l g i u m 1 . 0 % 0 . 7 % - 5 . 2 % - 1 1 . 8 % No r w a y 0 . 8 % 0 . 5 % 6 . 7 % 1 3 . 7 % Is r a e l 0 . 6 % 0 . 4 % 5 . 1 % 1 4 . 9 % Ir e l a n d 0 . 5 % 0 . 4 % - 5 . 4 % - 6 . 1 % Au s t r i a 0 . 2 % 0 . 2 % 0 . 2 % - 3 . 1 % Ne w Z e a l a n d 0 . 2 % 0 . 2 % 2 . 4 % 4 . 4 % Po r t u g a l 0 . 2 % 0 . 1 % - 0 . 6 % 1 . 7 % To t a l E A F E C o u n t r i e s 1 0 0 . 0 % 6 8 . 7 % 1 . 4 % 2 . 7 % Ca n a d a 6 . 7 % 0 . 8 % 1 . 9 % To t a l D e v e l o p e d C o u n t r i e s 7 5 . 3 % 1 . 3 % 2 . 7 % Ch i n a 7 . 6 % - 7 . 5 % - 2 . 2 % Ko r e a 3 . 7 % 0 . 7 % 1 . 4 % Ta i w a n 3 . 0 % 6 . 5 % 9 . 7 % In d i a 2 . 1 % - 2 . 3 % 1 . 1 % Br a z i l 1 . 5 % 6 . 1 % - 1 4 . 0 % So u t h A f r i c a 1 . 5 % - 7 . 4 % - 5 . 1 % Ru s s i a 0 . 9 % 6 . 2 % 1 3 . 7 % Me x i c o 0 . 8 % 6 . 9 % - 4 . 4 % Th a i l a n d 0 . 6 % 1 3 . 6 % 1 5 . 2 % Ma l a y s i a 0 . 6 % 3 . 8 % 7 . 6 % In d o n e s i a 0 . 5 % 2 . 0 % - 1 0 . 4 % Po l a n d 0 . 3 % 1 0 . 6 % - 5 . 0 % Ch i l e 0 . 3 % - 2 . 0 % - 5 . 7 % Ph i l i p p i n e s 0 . 2 % 1 . 0 % - 1 5 . 6 % Qa t a r 0 . 2 % 1 2 . 8 % 2 5 . 3 % Un i t e d A r a b E m i r a t e s 0 . 2 % 3 . 1 % - 6 . 9 % Tu r k e y 0 . 2 % - 2 0 . 5 % - 4 1 . 7 % Co l o m b i a 0 . 1 % - 2 . 5 % 1 0 . 0 % Pe r u 0 . 1 % - 2 . 1 % 1 2 . 2 % Gr e e c e 0 . 1 % - 1 7 . 6 % - 1 4 . 8 % Hu n g a r y 0 . 1 % 4 . 7 % - 5 . 0 % Cz e c h R e p u b l i c 0. 1 % 4 . 0 % 1 2 . 8 % Eg y p t 0 . 0 % - 6 . 8 % - 7 . 1 % Pa k i s t a n 0 . 0 % - 4 . 9 % - 2 0 . 6 % To t a l E m e r g i n g C o u n t r i e s 2 4 . 7 % - 1 . 1 % - 0 . 8 % To t a l A C W I x U S C o u n t r i e s 1 0 0 . 0 % 0 . 7 % 1 . 8 % MS C I - E A F E S e c t o r W e i g h t Q u a r te r R e t u r n 1 - Y e a r R e t u r n Co m m u n i c a t i o n S e r v i c e s 5. 4 % 3 . 3 % - 2 . 4 % Co n s u m e r D i s c r e t i o n a r y 11 . 1 % - 0 . 5 % 3 . 3 % Co n s u m e r S t a p l e s 11 . 3 % - 0 . 1 % 2 . 5 % En e r g y 6. 0 % 3 . 5 % 2 4 . 6 % Fin a n c i a l s 19 . 8 % 0 . 9 % - 4 . 0 % He a l t h C a r e 10 . 9 % 5 . 6 % 7 . 1 % In d u s t r i a l s 14 . 3 % 2 . 6 % 4 . 2 % In f o r m a t i o n T e c h n o l o g y 6. 2 % 0 . 3 % 7 . 4 % Ma t e r i a l s 8. 1 % 0 . 4 % 5 . 1 % Re a l E s t a t e 3. 5 % - 3 . 0 % 1 . 0 % Ut i l i t i e s 3. 3 % - 0 . 6 % 0 . 7 % To t a l 1 0 0 . 0 % 1 . 4 % 2 . 7 % MS C I - A C W I x U S S e c t o r W e i g h t Q u a r t e r R e t u rn 1 - Y e a r R e t u r n Co m m u n i c a t i o n S e r v i c e s 7. 6 % - 3 . 0 % - 4 . 1 % Co n s u m e r D i s c r e t i o n a r y 10 . 7 % - 3 . 2 % - 1 . 4 % Co n s u m e r S t a p l e s 9. 7 % - 0 . 6 % 1 . 6 % En e r g y 7. 1 % 4 . 1 % 1 8 . 3 % Fin a n c i a l s 22 . 0 % 1 . 7 % - 1 . 9 % He a l t h C a r e 8. 3 % 4 . 5 % 7 . 6 % In d u s t r i a l s 11 . 7 % 2 . 8 % 3 . 8 % In f o r m a t i o n T e c h n o l o g y 8. 5 % 1 . 3 % 5 . 6 % Ma t e r i a l s 8. 2 % 0 . 4 % 5 . 2 % Re a l E s t a t e 3. 2 % - 3 . 5 % - 2 . 7 % Ut i l i t i e s 3. 0 % - 0 . 9 % - 1 . 2 % To t a l 1 0 0 . 0 % 0 . 7 % 1 . 8 % MS C I - E m e r g i n g M k t S e c t o r W e i g h t Qu a r t e r R e t u r n 1 - Y e a r R e t u r n Co m m u n i c a t i o n S e r v i c e s 14 . 8 % - 9 . 4 % - 6 . 0 % Co n s u m e r D i s c r e t i o n a r y 11 . 3 % - 9 . 9 % - 1 3 . 2 % Co n s u m e r S t a p l e s 6. 7 % - 2 . 9 % - 1 . 9 % En e r g y 6. 3 % 1 4 . 5 % 2 6 . 0 % Fin a n c i a l s 23 . 3 % 1 . 5 % 0 . 4 % He a l t h C a r e 3. 1 % - 7 . 2 % 1 1 . 4 % In d u s t r i a l s 5. 3 % 2 . 5 % - 4 . 3 % In f o r m a t i o n T e c h n o l o g y 15 . 9 % 2 . 2 % 2 . 3 % Ma t e r i a l s 7. 8 % 4 . 5 % 8 . 6 % Re a l E s t a t e 2. 9 % - 5 . 6 % - 1 5 . 1 % Ut i l i t i e s 2. 5 % - 1 . 9 % - 5 . 4 % To t a l 1 0 0 . 0 % - 1 . 1 % - 0 . 8 % Pa g e 7 So u r c e : B l o o m b e r g The Market Environment Do m e s t i c B o n d S e c t o r & B r o a d / G l o b a l B o n d M a r k e t P e r f o r m a n c e ( D u ration)As of September 30, 2018  Br o a d f i x e d i n c o m e b e n c h m a r k s h a d m i x e d r e s u l t s d u r i n g t h e 3 r d q u a r t e r . In t e r e s t r a t e s r o s e a c r o s s a l l m a t u r i t i e s o n t h e U S T r e a s u r y Y i e l d C u r v e . T he Fe d e r a l O p e n M a r k e t C o m m i t t e e ( F O M C ) , d e c i d e d t o i n c r e a s e s h o r t - t e r m in t e r e s t r a t e s b y 2 5 b a s i s p o i n t s a t t h e i r S e p t e m b e r m e e t i n g c i t i n g c o n t i n ue d st r e n g t h i n t h e e c o n o m y a n d s t a b l e i n f l a t i o n . T h i s i s t h e t h i r d r a t e h i k e o f 20 1 8 . Th e c u r r e n t F e d F u n d s R a t e t a r g e t r a n g e s i t s a t 2 . 0 0 % - 2 . 2 5 % . T h e F O M C al s o c h a n g e d t h e l a n g u a g e u s e d i n i t s p o l i c y s t a t e m e n t , r e m o v i n g t h e w o r d “a c c o m m o d a t i v e ” , w h i c h i n v e s t o r s t o o k a s a s i g n a l t h a t t h e F e d p l a n s t o co n t i n u e i t s t r e n d o f m o n e t a r y p o l i c y t i g h t e n i n g . T h e y i e l d c u r v e c o n t i n u ed t o fl a t t e n , a l t h o u g h v e r y g r a d u a l l y , a s s h o r t - t e r m y i e l d s r o s e a t a g r e a t e r r at e t h a n lo n g - t e r m y i e l d s d u r i n g t h e q u a r t e r . T h e d i f f e r e n c e i n y i e l d s b e t w e e n t h e 2- ye a r a n d 1 0 - y e a r T r e a s u r y n o w s i t s a t j u s t 0 . 2 4 % . A s t h e c u r v e c o n t i n u e s t o fl a t t e n , i t m o v e s c l o s e r t o b e c o m i n g “ i n v e r t e d ” , w h i c h h a p p e n s w h e n s h o r t - te r m m a t u r i t i e s h a v e g r e a t e r y i e l d s t h a n l o n g - t e r m s e c u r i t i e s . H i s t o r i c al l y , a n in v e r t e d y i e l d c u r v e h a s s i g n a l e d a g r e a t e r p r o b a b i l i t y o f a r e c e s s i o n . T h eF e d is a l s o c o n t i n u i n g t h e r e d u c t i o n o f t h e s i z e o f i t s b a l a n c e s h e e t b y s l o w i n g it s pa c e o f r e i n v e s t m e n t a s t h e s e c u r i t i e s i t h o l d s m a t u r e . T h e B l o o m b e r g Ba r c l a y s U S A g g r e g a t e I n d e x w a s f l a t d u r i n g t h e q u a r t e r , p o s t i n g a 0 . 0 % re t u r n . O v e r t h e 1 - y e a r p e r i o d t h e i n d e x h a s f a l l e n - 1 . 2 % .  Wi t h i n i n v e s t m e n t g r a d e c r e d i t , l o w er q u a l i t y c o r p o r a t e i s s u e s o u t p e r f o rm e d hi g h e r q u a l i t y i s s u e s a s c r e d i t s p r e a d s t i g h t e n e d s t e a d i l y o v e r t h e q u a r t er . O n an a b s o l u t e b a s i s , w i t h o u t n e g a t i n g t h e d u r a t i o n d i f f e r e n c e s i n t h e s u b - i nd i c e s , Ba a r a t e d c r e d i t w a s t h e b e s t p e r f o r m i n g i n v e s t m e n t g r a d e c r e d i t q u a l i t y se g m e n t r e t u r n i n g 1 . 4 % f o r t h e q u a r t e r , w h i l e A A A w a s t h e w o r s t p e r f o r m i n g , fa l l i n g - 0 . 3 % . H i g h y i e l d d e b t o u t p e r f o r m e d r e l a t i v e t o i n v e s t m e n t g r a d e cr e d i t , re t u r n i n g 2 . 0 % , a s s p r e a d s t i g h t e n e d t o a g r e a t e r d e g r e e f o r t h e s e i s s u e s a nd th e i n d e x b e n e f i t t e d f r o m l e s s s e n s i t i v i t y t o r i s i n g i n t e r e s t r a t e s d u e t o it s l o w e r du r a t i o n . R e t u r n s a r e n e g a t i v e f o r a l l i nv e s t m e n t g r a d e q u a l i t y s e g m e n t s wh e n vi e w e d o v e r t h e 1 - y e a r p e r i o d w h i l e h i g h y i e l d c o n t i n u e s t o o u t p e r f o r m w i t ha re t u r n o f 3 . 0 % .  Of t h e B l o o m b e r g B a r c l a y s U S A g g r e g a t e I n d e x ’ s t h r e e b r o a d s e c t o r s , U S in v e s t m e n t g r a d e c o r p o r a t e s w e r e t h e b e s t p e r f o r m i n g i n v e s t m e n t g r a d e se c t o r t h r o u g h t h e q u a r t e r , r e t u r n i n g 1 . 0 % , a n d t h e o n l y s e c t o r t o p o s t a po s i t i v e r e t u r n f o r t h e p e r i o d . C o r po r a t e c r e d i t o u t p e r f o r m e d a s c r e d i t s pr e a d s ti g h t e n e d . D e m a n d f o r t h e s e s e c u r i t i e s o u t w e i g h e d s u p p l y f o r t h e p e r i o d de s p i t e c o n s i d e r a b l e n e w i s s u a n c e a n d a h e a d w i n d f r o m t h e s e c t o r s h i g h e r du r a t i o n r e l a t i v e t o o t h e r i n d e x s e c t o rs . T r e a s u r i e s w e r e t h e w o r s t p e r f o rm i n g se c t o r p o s t i n g a - 0 . 6 % r e t u r n . O v e r t h e 1 - y e a r p e r i o d , a l l t h r e e b r o a d in v e s t m e n t g r a d e s e c t o r s p o s t e d l o ss e s w i t h m o r t g a g e s , i n v e s t m e n t g r a d e cr e d i t a n d T r e a s u r i e s f a l l i n g - 0 . 9 % , - 1 . 2 % a n d - 1 . 6 % r e s p e c t i v e l y . -0 . 8 % -1 . 7 % 0.1 % 0. 0 % -0 . 8 % 1.0% -0 . 1 % -0 . 6 % 2.4%1.4%0.7% 0. 3 % -0 . 3 % -2 . 0 % - 1 . 0 % 0 . 0 % 1 . 0 % 2 . 0 % 3 . 0 % Mu l t i v e r s e ( 6 . 8 ) Gl o b a l A g g x U S ( 7 . 8 ) In t e r m e d i a t e A g g ( 4 . 4 ) Ag g r e g a t e ( 6 . 0 ) U. S . T I P S ( 5 . 4 ) U. S . C o r p o r a t e I G ( 7 . 2 ) U. S . M o r t g a g e ( 5 . 3 ) U. S . T r e a s u r y ( 6 . 0 ) U. S . H i g h Y i e l d ( 3 . 8 ) Ba a ( 7 . 4 ) A ( 7 . 2 ) AA ( 5 . 9 ) AA A ( 5 . 6 ) Qu a r t e r P e r f o r m a n c e -1 . 3 % -1 . 5 % -0 . 9 % -1 . 2 % 0. 4 % -1 . 2 % -0 . 9 % -1 . 6 % 3.0% -0 . 8 % -1 . 6 % -0 . 6 % -1 . 3 % -2 . 0 % - 1 . 0 % 0 . 0 % 1 . 0 % 2 . 0 % 3 . 0 % 4 . 0 % Mu l t i v e r s e ( 6 . 8 ) Gl o b a l A g g x U S ( 7 . 8 ) In t e r m e d i a t e A g g ( 4 . 4 ) Ag g r e g a t e ( 6 . 0 ) U. S . T I P S ( 5 . 4 ) U. S . C o r p o r a t e I G ( 7 . 2 ) U. S . M o r t g a g e ( 5 . 3 ) U. S . T r e a s u r y ( 6 . 0 ) U. S . H i g h Y i e l d ( 3 . 8 ) Ba a ( 7 . 4 ) A ( 7 . 2 ) AA ( 5 . 9 ) AA A ( 5 . 6 ) 1- Y e a r P e r f o r m a n c e Pa g e 8 So u r c e : U S D e p a r t m e n t o f T r e a s u r y , F R E D ( F e d e r a l R e s e r v e o f S t . L o u i s ) The Market Environment Ma r k e t R a t e & Y i e l d C u r v e C o m p a r i s o n As of September 30, 2018  Gl o b a l f i x e d i n c o m e i n d i c e s c o n t i n u e t o s t r u g g l e r e l a t i v e t o t h e i r d o m e s t ic co u n t e r p a r t s , u n d e r p e r f o r m i n g d u r i n g t h e 3 r d q u a r t e r . T h e s e i n d i c e s h a v e lo w e r y i e l d s a n d t h e i r r e l a t i v e l y h i g h d u r a t i o n a c t e d a s a h e a d w i n d t o pe r f o r m a n c e i n t h e c u r r e n t q u a r t e r a s i nt e r e s t r a t e s i n c r e a s e d . T h e r e t u r ns o f th e s e i n d i c e s a r e a l s o s i g n i f i c a n t l y in f l u e n c e d b y f l u c t u a t i o n s i n t h e i r cu r r e n c y de n o m i n a t i o n r e l a t i v e t o t h e U S D . D u r i n g t h e 3 r d q u a r t e r t h e U S D st r e n g t h e n e d a g a i n s t m o s t o t h e r c u r r en c i e s , n e g a t i v e l y i m p a c t i n g t h e r e tu r n s on g l o b a l b o n d i n d i c e s . T h e r e t u r n o n g l o b a l b o n d s , a s r e p r e s e n t e d b y t h e Bl o o m b e r g B a r c l a y s G l o b a l A g g r e g a t e e x U S I n d e x , w a s - 1 . 7 % a n d - 1 . 5 % f o r th e q u a r t e r a n d 1 - y e a r p e r i o d r e s p e c t i v e l y . A s t h e g l o b a l e c o n o m y c o n t i n u es t o re c o v e r , s e v e r a l i n t e r n a t i o n a l c e n t r a l b a n k s h a v e s t a r t e d t o m o v e t o w a r d le s s ac c o m m o d a t i v e p o s t u r e s . N o t a b l y , t h e E C B , b e g a n t o s l o w i t s m o n t h l y b o n d pu r c h a s e p r o g r a m i n S e p t e m b e r , r e d u c i n g n e w p u r c h a s e s t o 1 5 b i l l i o n e u r o pe r m o n t h f r o m 3 0 b i l l i o n e u r o p e r m o n t h , a s w e l l a s f o r e c a s t i n g a n e n d t o t h e pr o g r a m b y t h e e n d o f t h e y e a r a s s u m i n g t h e e u r o z o n e r e c o v e r y c o n t i n u e s t o fl o u r i s h . H o w e v e r , t h e y h a v e i n d i c a t e d a c o n t i n u a t i o n o f r e i n v e s t m e n t i n ma t u r i n g s e c u r i t i e s a n d w o u l d l i k e l y n o t r a i s e i n t e r e s t r a t e s f r o m c u r r e n t l e v e l s un t i l s u m m e r 2 0 1 9 . T h e B a n k o f E n g l a n d i n c r e a s e d i n t e r e s t r a t e s b y 0 . 2 5 % du r i n g t h e q u a r t e r c i t i n g i m p r o v e m e n t in t h e i r n e a r - t e r m e c o n o m i c o u t l o o k a n d th e B a n k o f J a p a n h a s c h a n g e d i t s p o l i c y t o a l l o w f l e x i b i l i t y f o r f u t u r e t i g ht e n i n g in t h e f u t u r e .  Mu c h o f t h e i n d e x p e r f o r m a n c e d e t a i l e d i n t h e b a r g r a p h s o n t h e p r e v i o u s pa g e i s v i s i b l e o n a t i m e s e r i e s b a s i s b y r e v i e w i n g t h e l i n e g r a p h s t o t h e r i g ht . Th e ‘ 1 - Y e a r T r a i l i n g M a r k e t R a t e s ’ c ha r t i l l u s t r a t e s t h a t t h e 1 0 - y e a r T r e as u r y yi e l d ( g r e e n l i n e ) r o s e s t e a d i l y d u r i n g t h e e n d o f t h e 3 r d q u a r t e r , e n d i n g t he pe r i o d a t 3 . 0 5 % . T h e b l u e l i n e i l l u s t r a t e s c h a n g e s i n t h e B A A O A S ( O p t i o n Ad j u s t e d S p r e a d ) . T h i s m e a s u r e q u a n t if i e s t h e a d d i t i o n a l y i e l d p r e m i u m t ha t in v e s t o r s r e q u i r e t o p u r c h a s e a n d h o l d n o n - T r e a s u r y i s s u e s . T h i s l i n e il l u s t r a t e s a s t e a d y i n c r e a s e i n c r e d i t s p r e a d s t h r o u g h t h e f i r s t t w o q u a r te r s o f 20 1 8 , f o l l o w e d b y a s m o o t h d e c l i n e d u r i n g t h e 3 r d q u a r t e r . T h i s d e c l i n e i s eq u i v a l e n t t o a n i n t e r e s t r a t e d e c r e a s e o n c o r p o r a t e b o n d s , w h i c h p r o d u c e sa n ad d i t i o n a l t a i l w i n d f o r c o r p o r a t e b o n d i n d e x r e t u r n s . T h e s e c r e d i t s p r e a ds h a v e ti g h t e n e d b y a b o u t 2 0 b a s i s p o i n t s o v e r t h e l a s t 3 - m o n t h s . T h e g r e e n b a n d ac r o s s t h e g r a p h i l l u s t r a t e s t h e g r a d u a l i n c r e a s e i n t h e F e d e r a l F u n d s R a t e (t h r e e i n c r e a s e s i n t h e l a s t t w e l v e m o n t h s ) d u e t o t h e c o n t i n u e d u n w i n d i n g of ac c o m m o d a t i v e U S m o n e t a r y p o l i c y .  Th e l o w e r g r a p h p r o v i d e s a s n a p s h o t o f t h e U S T r e a s u r y y i e l d c u r v e a t t h e e n d of e a c h o f t h e l a s t f o u r c a l e n d a r q u a r t e r s . A s m e n t i o n e d , t h e y i e l d c u r v e co n t i n u e s t o f l a t t e n a s y i e l d s o n s h o r te r - t e r m m a t u r i t i e s h a v e r i s e n m o r e th a n in t e r e s t r a t e s o n t h e l o n g e n d o f t h e c u r v e . T h e u p w a r d m o m e n t u m o f i n t e r e s t ra t e s a s w e l l a s a g e n e r a l f l a t t e n i n g o f t h e y i e l d c u r v e a r e c l e a r l y v i s i b l e ov e r th e l a s t t w e l v e m o n t h s . Fed Funds Rate TED Spread3-Month Libor BAA OAS10yr Treasury 10yr TIPS 0. 0 0 0. 5 0 1. 0 0 1. 5 0 2. 0 0 2. 5 0 3. 0 0 3. 5 0 Se p - 1 7 O c t - 1 7 N o v - 1 7 D e c - 1 7 J a n - 1 8 F e b - 1 8 M a r - 1 8 A p r - 1 8 M a y - 1 8 J u n - 1 8 J u l -18 Aug-18 Sep-18 1- Y e a r T r a i l i n g M a r k e t R a t e s Fe d F u n d s R a t e TE D S p r e a d 3- M o n t h L i b o r BA A O A S 10 y r T r e a s u r y 10 y r T I P S 12/31/20173/31/20186/30/20189/30/2018 0. 0 0 0. 5 0 1. 0 0 1. 5 0 2. 0 0 2. 5 0 3. 0 0 3. 5 0 1 m o 3 m o 6 m o 1 y r 2 y r 3 y r 5 y r 7 y r 1 0 y r 2 0 y r 3 0 y r Tr e a s u r y Y i e l d C u r v e 12 / 3 1 / 2 0 1 7 3/ 3 1 / 2 0 1 8 6/ 3 0 / 2 0 1 8 9/ 3 0 / 2 0 1 8 Pa g e 9 June 30, 2018 : $5,417,988 Cash Equivalents Total Real Estate Global Fixed Income Domestic Fixed Income International Equity Domestic Equity September 30, 2018 : $5,693,187 Cash Equivalents Total Real Estate Global Fixed Income Domestic Fixed Income International Equity Domestic Equity Allocation Market Value Allocation Domestic Equity 2,848,036 52.6¢£ International Equity 819,937 15.1¢£ Domestic Fixed Income 994,906 18.4¢£ Global Fixed Income 245,204 4.5¢£ Total Real Estate 499,777 9.2¢£ Cash Equivalents 10,127 0.2¢£ Allocation Market Value Allocation Domestic Equity 3,029,359 53.2¢£ International Equity 813,042 14.3¢£ Domestic Fixed Income 997,134 17.5¢£ Global Fixed Income 248,591 4.4¢£ Total Real Estate 508,003 8.9¢£ Cash Equivalents 97,059 1.7¢£ Tequesta General Employees' Retirement Plan Asset Allocation by Asset Class As of September 30, 2018 Page 10 June 30, 2018 : $5,417,988 Dana Equity R&D ASB Real Estate Templeton Global Total Return R6 (FTTRX) Dana Fixed EuroPacific (RERGX) Vanguard Total Stock Market Index (VITSX) September 30, 2018 : $5,693,187 Dana Equity R&D ASB Real Estate Templeton Global Total Return R6 (FTTRX) Dana Fixed EuroPacific (RERGX) Vanguard Total Stock Market Index (VITSX) Allocation Market Value Allocation Dana Equity 1,438,220 26.5¢£ Vanguard Total Stock Market Index (VITSX)1,409,816 26.0¢£ EuroPacific (RERGX)819,937 15.1¢£ Dana Fixed 994,906 18.4¢£ Templeton Global Total Return R6 (FTTRX)245,204 4.5¢£ ASB Real Estate 499,777 9.2¢£ R&D 10,127 0.2¢£ Allocation Market Value Allocation Dana Equity 1,519,541 26.7¢£ Vanguard Total Stock Market Index (VITSX)1,509,818 26.5¢£ EuroPacific (RERGX)813,042 14.3¢£ Dana Fixed 997,134 17.5¢£ Templeton Global Total Return R6 (FTTRX)248,591 4.4¢£ ASB Real Estate 508,003 8.9¢£ R&D 97,059 1.7¢£ Tequesta General Employees' Retirement Plan Asset Allocation by Manager As of September 30, 2018 Page 11 Executive Summary Policy Target In Policy Outside Policy 0.0%8.0%16.0%24.0%32.0%40.0%48.0%56.0%64.0%72.0% Total Real Estate (8.9%) Global Fixed Income (4.4%) Domestic Fixed Income (17.5%) International Equity (14.3%) Domestic Equity (53.2%) R e c o m m e n d a t i o n Asset Allocation Compliance Minimum Allocation (%) Maximum Allocation (%) Current Allocation (%) Target Allocation (%) Global Fixed Income 0.0 10.0 4.4 5.0 Total Real Estate 5.0 15.0 8.9 10.0 International Equity 10.0 20.0 14.3 15.0 Domestic Fixed Income 15.0 25.0 17.5 20.0 Domestic Equity 45.0 55.0 53.2 50.0 Total Fund N/A N/A 100.0 100.0 Tequesta General Employees' Retirement Plan Asset Allocation Compliance As of September 30, 2018 Page 12 Plan Sponsor TF Asset Allocation vs. All Public Plans-Total Fund -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 44.0 52.0 60.0 68.0 76.0 A l l o c a t i o n (%) US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv.Real Estate Cash Tequesta General Employees 53.21 (30)14.28 (40)17.51 (91)4.37 (60)0.00 8.92 (43)1.70 (36)˜ 5th Percentile 63.89 21.69 43.85 7.43 19.97 13.73 8.55 1st Quartile 54.19 15.21 33.67 4.92 10.85 9.98 2.23 Median 48.11 13.97 28.18 4.50 7.52 8.11 0.99 3rd Quartile 42.83 11.32 22.25 4.18 4.30 5.30 0.51 95th Percentile 33.56 7.45 15.44 2.82 1.04 3.88 0.05 Population 182 166 185 72 28 112 167 Tequesta General Employees' Retirement Plan Asset Allocation vs Other Public Pension Plans As of September 30, 2018 Parentheses contain percentile rankings. Page 13 Sep-2018 Jun-2018 Mar-2018 Dec-2017 Sep-2017 ($)%($)%($)%($)%($)% Total Equity 3,842,400 67.49 3,667,974 67.70 3,571,732 67.51 3,512,806 67.04 3,250,674 66.02 Domestic Equity 3,029,359 53.21 2,848,036 52.57 2,741,154 51.81 2,705,104 51.62 2,487,177 50.51 Dana Large Cap Core 1,519,541 26.69 1,438,220 26.55 1,404,901 26.56 1,385,168 26.43 1,264,504 25.68 Vanguard Total Stock Market Index (VITSX)1,509,818 26.52 1,409,816 26.02 1,336,253 25.26 1,319,936 25.19 1,222,673 24.83 International Equity 813,042 14.28 819,937 15.13 830,578 15.70 807,702 15.41 763,497 15.51 EuroPacific Growth Fund R6 (RERGX)813,042 14.28 819,937 15.13 830,578 15.70 807,702 15.41 763,497 15.51 Total Fixed Income 1,245,725 21.88 1,240,110 22.89 1,216,918 23.00 1,189,688 22.70 1,167,143 23.70 Domestic Fixed Income 997,134 17.51 994,906 18.36 968,174 18.30 949,737 18.12 926,868 18.82 Dana Intermediate Fixed Income 997,134 17.51 994,906 18.36 968,174 18.30 949,737 18.12 926,868 18.82 Global Fixed Income 248,591 4.37 245,204 4.53 248,744 4.70 239,951 4.58 240,275 4.88 Templeton Global Total Return R6 (FTTRX)248,591 4.37 245,204 4.53 248,744 4.70 239,951 4.58 240,275 4.88 Total Real Estate 508,003 8.92 499,777 9.22 491,550 9.29 483,453 9.23 474,871 9.64 ASB Real Estate 508,003 8.92 499,777 9.22 491,550 9.29 483,453 9.23 474,871 9.64 Cash Accounts R&D 97,059 1.70 10,127 0.19 10,118 0.19 54,110 1.03 31,294 0.64 Total Fund 5,693,187 100.00 5,417,988 100.00 5,290,318 100.00 5,240,057 100.00 4,923,982 100.00 Tequesta General Employees' Retirement Plan Asset Allocation History by Portfolio As of September 30, 2018 Page 14 Domestic Equity International Equity Domestic Fixed Income Global Fixed Income Real Estate Cash Equivalent 0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 64.0 72.0 80.0 88.0 96.0 A l l o c a t i o n (%) 8/07 2/08 8/08 2/09 8/09 2/10 8/10 2/11 8/11 2/12 8/12 2/13 8/13 2/14 8/14 2/15 8/15 2/16 8/16 2/17 8/17 2/18 9/18 Tequesta General Employees' Retirement Plan Asset Allocation History by Asset Class September 1, 2007 To September 30, 2018 Page 15 Market Value 07/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Captial Gain/Loss Market Value 09/30/2018 Total Equity 3,667,974 2,337 ---2,337 -210 15,012 159,625 3,842,400 Domestic Equity 2,848,036 2,337 ---2,337 -210 15,012 166,521 3,029,359 Dana Large Cap Core 1,438,220 2,337 ---2,337 -210 7,832 73,699 1,519,541 Vanguard Total Stock Market Index (VITSX)1,409,816 -----7,180 92,822 1,509,818 International Equity 819,937 -------6,895 813,042 EuroPacific Growth Fund R6 (RERGX)819,937 -------6,895 813,042 Total Fixed Income 1,240,110 622 ---622 -146 11,482 -5,722 1,245,725 Domestic Fixed Income 994,906 622 ---622 -146 7,653 -5,279 997,134 Dana Intermediate Fixed Income 994,906 622 ---622 -146 7,653 -5,279 997,134 Global Fixed Income 245,204 -----3,830 -443 248,591 Templeton Global Total Return R6 (FTTRX)245,204 -----3,830 -443 248,591 Total Real Estate 499,777 ----1,561 -1 9,786 508,003 ASB Real Estate 499,777 ----1,561 -1 9,786 508,003 Cash Accounts R&D 10,127 -2,959 121,222 -20,759 --10,793 221 -97,059 Total Fund 5,417,988 -121,222 -20,759 -4,520 -11,149 26,716 163,690 5,693,187 Tequesta General Employees' Retirement Plan Financial Reconciliation 1 Quarter Ending September 30, 2018 Page 16 Market Value 10/01/2017 Net Transfers Contributions Distributions Management Fees Other Expenses Income Capital Gain/Loss Market Value 09/30/2018 Total Equity 3,250,674 178,547 ---9,940 -803 62,641 361,281 3,842,400 Domestic Equity 2,487,177 139,638 ---9,940 -803 54,857 358,430 3,029,359 Dana Large Cap Core 1,264,504 74,789 ---9,940 -803 29,816 161,175 1,519,541 Vanguard Total Stock Market Index (VITSX)1,222,673 64,849 ----25,041 197,255 1,509,818 International Equity 763,497 38,909 ----7,785 2,851 813,042 EuroPacific Growth Fund R6 (RERGX)763,497 38,909 ----7,785 2,851 813,042 Total Fixed Income 1,167,143 93,188 ---2,400 -562 40,520 -52,165 1,245,725 Domestic Fixed Income 926,868 80,218 ---2,400 -562 29,506 -36,497 997,134 Dana Intermediate Fixed Income 926,868 80,218 ---2,400 -562 29,506 -36,497 997,134 Global Fixed Income 240,275 12,970 ----11,014 -15,668 248,591 Templeton Global Total Return R6 (FTTRX)240,275 12,970 ----11,014 -15,668 248,591 Total Real Estate 474,871 ----5,778 -6 38,904 508,003 ASB Real Estate 474,871 ----5,778 -6 38,904 508,003 Cash Accounts R&D 31,294 -271,735 507,022 -111,057 --59,112 647 -97,059 Total Fund 4,923,982 -507,022 -111,057 -18,118 -60,477 103,815 348,020 5,693,187 Tequesta General Employees' Retirement Plan Financial Reconciliation October 1, 2017 To September 30, 2018 Page 17 QTR FYTD 1 YR 3 YR 4 YR 5 YR Inception Inception Date Total Fund 3.50 (46)8.94 (43)8.94 (43)9.67 (63)7.18 (56)8.11 (45)6.38 (30)11/01/2000 Total Fund Policy 3.94 (23)9.58 (30)9.58 (30)11.32 (15)8.02 (26)8.71 (21)5.92 (56) All Public Plans-Total Fund Median 3.40 8.66 8.66 10.04 7.36 7.98 5.98 Total Fund (Net)3.41 8.57 8.57 9.25 6.76 7.66 6.05 11/01/2000 Total Fund Policy 3.94 9.58 9.58 11.32 8.02 8.71 5.92 Total Equity 4.76 12.74 12.74 13.65 9.84 11.34 9.30 02/01/2004 Total Equity Policy 5.66 13.94 13.94 15.68 10.63 11.74 7.83 Domestic Equity 6.37 (69)16.19 (60)16.19 (60)14.77 (78)10.93 (75)12.97 (67)10.19 (14)02/01/2004 Total Domestic Equity Policy 7.12 (50)17.58 (46)17.58 (46)17.21 (30)12.47 (45)13.89 (44)8.87 (87) IM U.S. Large Cap Core Equity (SA+CF) Median 7.11 17.33 17.33 16.11 12.23 13.57 9.46 International Equity -0.84 (98)1.50 (45)1.50 (45)9.94 (6)6.14 (1)5.87 (1)8.16 (15)07/01/2009 MSCI AC World ex USA 0.80 (32)2.25 (20)2.25 (20)10.49 (2)4.45 (17)4.60 (15)7.50 (35) IM International Large Cap Core Equity (MF) Median 0.52 1.34 1.34 8.17 3.35 3.55 6.76 Total Fixed Income 0.46 -0.99 -0.99 1.88 1.85 2.10 3.99 01/01/2004 Total Fixed Policy 0.21 -0.96 -0.96 1.60 1.70 1.96 N/A Domestic Fixed Income 0.24 (81)-0.76 (88)-0.76 (88)1.18 (71)1.71 (48)1.96 (45)3.95 (26)01/01/2004 Domestic Fixed Income Policy 0.11 (96)-0.93 (96)-0.93 (96)0.95 (92)1.44 (82)1.70 (76)3.45 (83) IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.39 -0.39 1.37 1.70 1.91 3.79 Global Fixed Income 1.38 (6)-1.90 (66)-1.90 (66)4.66 (5)1.30 (37)N/A 1.81 (30)11/01/2013 Global Fixed Income Index 0.57 (16)-1.16 (50)-1.16 (50)5.17 (2)2.87 (6)3.22 (11)2.83 (14) IM Global Fixed Income (MF) Median -0.39 -1.19 -1.19 2.36 0.78 1.39 1.18 Total Real Estate 1.96 (66)8.25 (72)8.25 (72)N/A N/A N/A 6.05 (100)07/01/2016 NCREIF Fund Index-Open End Diversified Core (EW)2.08 (63)8.82 (67)8.82 (67)9.08 (56)10.46 (58)10.84 (61)8.39 (56) IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 9.69 9.69 9.53 11.06 11.41 8.94 Tequesta General Employees' Retirement Plan Trailing Returns As of September 30, 2018 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. Page 18 Tequesta General Employees' Retirement Plan Trailing Returns As of September 30, 2018 QTR FYTD 1 YR 3 YR 4 YR 5 YR Inception Inception Date Domestic Equity Strategies Dana Large Cap Core 5.67 (81)14.77 (70)14.77 (70)15.29 (69)11.31 (69)13.28 (59)9.57 (54)11/01/2005 S&P 500 Index 7.71 (33)17.91 (41)17.91 (41)17.31 (30)12.55 (42)13.95 (42)9.34 (68) IM U.S. Large Cap Core Equity (SA+CF) Median 7.11 17.33 17.33 16.11 12.23 13.57 9.63 Vanguard Total Stock Market Index (VITSX)7.09 (22)17.65 (18)17.65 (18)N/A N/A N/A 18.57 (22)12/01/2016 Russell 3000 Index 7.12 (19)17.58 (19)17.58 (19)17.07 (11)12.41 (10)13.46 (11)18.52 (23) IM U.S. Multi-Cap Core Equity (MF) Median 5.83 14.51 14.51 14.53 10.39 11.56 16.27 International Equity Strategies EuroPacific Growth Fund R6 (RERGX)-0.84 (98)1.49 (45)1.49 (45)9.93 (6)6.01 (1)N/A 4.72 (1)06/01/2014 MSCI AC World ex USA 0.80 (32)2.25 (20)2.25 (20)10.49 (2)4.45 (17)4.60 (15)3.23 (11) IM International Large Cap Core Equity (MF) Median 0.52 1.34 1.34 8.17 3.35 3.55 2.15 Domestic Fixed Income Strategies Dana Intermediate Fixed Income 0.24 (81)-0.76 (88)-0.76 (88)1.05 (86)1.61 (62)1.88 (55)3.91 (53)11/01/2005 Domestic Fixed Income Policy 0.11 (96)-0.93 (96)-0.93 (96)0.95 (92)1.44 (82)1.70 (76)3.53 (90) IM U.S. Intermediate Duration (SA+CF) Median 0.37 -0.39 -0.39 1.37 1.70 1.91 3.95 Global Fixed Income Strategies Templeton Global Total Return R6 (FTTRX)1.38 (6)-1.90 (66)-1.90 (66)4.66 (5)1.30 (37)N/A 1.81 (30)11/01/2013 Global Fixed Income Index 0.57 (16)-1.16 (50)-1.16 (50)5.17 (2)2.87 (6)3.22 (11)2.83 (14) IM Global Fixed Income (MF) Median -0.39 -1.19 -1.19 2.36 0.78 1.39 1.18 Real Estate Strategies ASB Real Estate 1.96 (66)8.25 (72)8.25 (72)N/A N/A N/A 6.05 (100)07/01/2016 NCREIF Fund Index-Open End Diversified Core (EW)2.08 (63)8.82 (67)8.82 (67)9.08 (56)10.46 (58)10.84 (61)8.39 (56) IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 9.69 9.69 9.53 11.06 11.41 8.94 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. Page 19 FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Total Fund 8.94 (43)14.16 (15)6.06 (97)0.06 (37)11.92 (13)12.09 (58)18.89 (28)1.62 (22) Total Fund Policy 9.58 (30)13.13 (31)11.29 (9)-1.32 (71)11.54 (19)11.19 (74)18.06 (47)1.28 (27) All Public Plans-Total Fund Median 8.66 12.19 9.66 -0.53 10.17 12.49 17.96 0.29 Total Fund (Net)8.57 13.70 5.62 -0.37 11.35 11.50 18.29 1.08 Total Fund Policy 9.58 13.13 11.29 -1.32 11.54 11.19 18.06 1.28 Total Equity 12.74 20.79 7.81 -0.84 17.55 21.22 29.19 -0.06 Total Equity Policy 13.94 19.04 14.15 -3.24 16.27 18.88 27.62 -0.60 Domestic Equity 16.19 (60)20.91 (24)7.61 (92)0.16 (49)21.50 (21)21.70 (36)31.26 (27)2.42 (35) Total Domestic Equity Policy 17.58 (46)18.63 (52)15.43 (23)-0.61 (63)19.73 (45)19.34 (65)30.20 (44)1.14 (51) IM U.S. Large Cap Core Equity (SA+CF) Median 17.33 18.69 13.30 0.05 19.21 20.71 29.63 1.16 International Equity 1.50 (45)20.63 (21)8.52 (6)-4.49 (8)4.79 (36)18.28 (72)18.93 (11)-12.67 (80) MSCI AC World ex USA 2.25 (20)20.15 (22)9.80 (4)-11.78 (78)5.22 (32)16.98 (75)15.04 (47)-10.42 (29) IM International Large Cap Core Equity (MF) Median 1.34 18.41 5.55 -7.83 4.19 21.59 14.76 -11.30 Total Fixed Income -0.99 2.90 3.80 1.75 3.11 0.21 6.81 2.90 Total Fixed Policy -0.96 0.82 5.05 1.99 3.01 -0.55 4.36 3.40 Domestic Fixed Income -0.76 (88)0.34 (78)4.02 (43)3.31 (12)2.98 (44)0.21 (26)6.81 (22)2.90 (78) Domestic Fixed Income Policy -0.93 (96)0.25 (87)3.57 (73)2.95 (32)2.74 (58)-0.71 (77)4.36 (83)3.40 (61) IM U.S. Intermediate Duration (SA+CF) Median -0.39 0.70 3.90 2.70 2.88 -0.27 5.56 3.60 Global Fixed Income -1.90 (66)13.82 (1)2.68 (94)-8.14 (94)N/A N/A N/A N/A Global Fixed Income Index -1.16 (50)2.82 (28)14.46 (1)-3.75 (49)4.65 (36)-1.58 (48)14.19 (3)2.52 (39) IM Global Fixed Income (MF) Median -1.19 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 Total Real Estate 8.25 (72)3.60 (100)N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core (EW)8.82 (67)7.81 (60)10.62 (69)14.71 (62)12.39 (68)12.47 (67)11.77 (66)18.03 (44) IM U.S. Open End Private Real Estate (SA+CF) Median 9.69 8.29 11.32 15.45 12.78 13.18 12.90 16.96 Tequesta General Employees' Retirement Plan Fiscal Year Returns As of September 30, 2018 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. Page 20 Tequesta General Employees' Retirement Plan Fiscal Year Returns As of September 30, 2018 FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Domestic Equity Strategies Dana Large Cap Core 14.77 (70)24.09 (7)7.61 (92)0.16 (49)21.51 (21)21.69 (36)31.26 (27)2.43 (35) S&P 500 Index 17.91 (41)18.61 (53)15.43 (23)-0.61 (63)19.73 (45)19.34 (65)30.20 (44)1.14 (51) IM U.S. Large Cap Core Equity (SA+CF) Median 17.33 18.69 13.30 0.05 19.21 20.71 29.63 1.16 Vanguard Total Stock Market Index (VITSX)17.65 (18)N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 17.58 (19)18.71 (36)14.96 (17)-0.49 (32)17.76 (31)21.60 (59)30.20 (18)0.55 (30) IM U.S. Multi-Cap Core Equity (MF) Median 14.51 17.51 11.85 -1.88 16.33 22.79 26.86 -1.52 International Equity Strategies EuroPacific Growth Fund R6 (RERGX)1.49 (45)20.63 (21)8.52 (6)-4.93 (8)N/A N/A N/A N/A MSCI AC World ex USA 2.25 (20)20.15 (22)9.80 (4)-11.78 (78)5.22 (32)16.98 (75)15.04 (47)-10.42 (29) IM International Large Cap Core Equity (MF) Median 1.34 18.41 5.55 -7.83 4.19 21.59 14.76 -11.30 Domestic Fixed Income Strategies Dana Intermediate Fixed Income -0.76 (88)0.34 (78)3.61 (72)3.31 (12)2.98 (44)0.21 (26)6.80 (22)2.89 (78) Domestic Fixed Income Policy -0.93 (96)0.25 (87)3.57 (73)2.95 (32)2.74 (58)-0.71 (77)4.36 (83)3.40 (61) IM U.S. Intermediate Duration (SA+CF) Median -0.39 0.70 3.90 2.70 2.88 -0.27 5.56 3.60 Global Fixed Income Strategies Templeton Global Total Return R6 (FTTRX)-1.90 (66)13.82 (1)2.68 (94)-8.14 (94)N/A N/A N/A N/A Global Fixed Income Index -1.16 (50)2.82 (28)14.46 (1)-3.75 (49)4.65 (36)-1.58 (48)14.19 (3)2.52 (39) IM Global Fixed Income (MF) Median -1.19 1.02 7.42 -3.85 3.37 -1.81 7.17 1.74 Total Real Estate Strategies ASB Real Estate 8.25 (72)3.60 (100)N/A N/A N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core (EW)8.82 (67)7.81 (60)10.62 (69)14.71 (62)12.39 (68)12.47 (67)11.77 (66)18.03 (44) IM U.S. Open End Private Real Estate (SA+CF) Median 9.69 8.29 11.32 15.45 12.78 13.18 12.90 16.96 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. Page 21 Plan Growth Total Fund Net Cash Flow $0.0 $1,150,000.0 $2,300,000.0 $3,450,000.0 $4,600,000.0 $5,750,000.0 $6,900,000.0 M a r k e t V a l u e 9/00 6/01 3/02 12/02 9/03 6/04 3/05 12/05 9/06 6/07 3/08 12/08 9/09 6/10 3/11 12/11 9/12 6/13 3/14 12/14 9/15 6/16 3/17 12/17 9/18 $3,139,532.9 $5,693,187.4 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR Total Fund 3.50 (46)4.38 (57)8.94 (43)11.52 (23)9.67 (63)8.11 (44)10.16 (46)8.40 (39)7.20 (50) Total Fund Policy 3.94 (23)5.21 (33)9.58 (30)11.34 (28)11.32 (15)8.71 (21)10.36 (38)8.30 (42)6.57 (88) Median 3.40 4.65 8.66 10.57 10.03 7.97 10.01 8.17 7.20 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Total Fund 8.94 (43)14.16 (14)6.06 (97)0.06 (38)11.92 (18)12.09 (57)18.89 (32)1.62 (17)10.01 (41) Total Fund Policy 9.58 (30)13.13 (30)11.29 (9)-1.32 (75)11.54 (26)11.19 (74)18.06 (53)1.28 (22)9.40 (58) Median 8.66 12.26 9.53 -0.32 10.52 12.49 18.20 0.07 9.70 Tequesta General Employees' Retirement Plan Long-Term Performance As of September 30, 2018 Peer Group: All Public Plans-Total Fund Page 22 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present Total Fund Total Fund Policy 4.8 5.4 6.0 6.6 7.2 7.8 R e t u r n (%) 5.6 6.4 7.2 8.0 8.8 9.6 10.4 11.2 12.0 12.8 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present Total Fund Total Fund Policy 95.2 96.0 96.8 97.6 98.4 99.2 100.0 100.8 U p M a r k e t C a p t u r e R a t i o (%) 81.0 84.0 87.0 90.0 93.0 96.0 99.0 102.0 105.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error Total Fund 59.09 -20.67 0.98 0.26 0.72 0.11 0.07 0.89 2.42 Total Fund Policy 0.00 -27.76 0.00 0.00 0.63 N/A 0.06 1.00 0.00 90 Day U.S. Treasury Bill 27.27 0.00 0.65 -5.97 N/A -0.63 0.00 -0.01 9.42 Tequesta General Employees' Retirement Plan Long-Term Performance As of September 30, 2018 Peer Group: All Public Plans-Total Fund Page 23 Multi Timeperiod Statistics 1 Qtr Return 1 Quarter Ending Jun-2018 Return 1 Quarter Ending Mar-2018 Return 1 Quarter Ending Dec-2017 Return 3 YR Return 5 YR Return 3 YR Down Market Capture 5 YR Down Market Capture Total Fund 3.50 (46)0.84 (79)0.02 (28)4.37 (12)9.67 (63)8.11 (45)-3.39 (80)102.14 (70) Total Fund Policy 3.94 (23)1.68 (35)-0.45 (64)4.16 (21)11.32 (15)8.71 (21)100.00 100.00 All Public Plans-Total Fund Median 3.40 1.36 -0.28 3.74 10.04 7.98 81.59 116.72 Total Fund (Net)3.41 0.75 -0.07 4.28 9.25 7.66 16.04 107.50 Total Fund Policy 3.94 1.68 -0.45 4.16 11.32 8.71 100.00 100.00 Total Equity 4.76 1.15 -0.09 6.49 13.65 11.34 12.67 105.93 Total Equity Policy 5.66 2.44 -0.74 6.05 15.68 11.74 100.00 100.00 Domestic Equity 6.37 (69)2.36 (67)-0.44 (52)7.18 (32)14.77 (78)12.97 (67)67.70 (46)111.41 (30) Total Domestic Equity Policy 7.12 (50)3.89 (19)-0.64 (59)6.34 (63)17.21 (30)13.89 (44)100.00 100.00 IM U.S. Large Cap Core Equity (SA+CF) Median 7.11 2.89 -0.40 6.67 16.11 13.57 55.07 100.06 International Equity -0.84 (98)-2.82 (86)1.05 (8)4.24 (44)9.94 (6)5.87 (1)160.28 (64)89.76 (95) MSCI AC World ex USA 0.80 (32)-2.39 (79)-1.08 (46)5.06 (13)10.49 (2)4.60 (15)100.00 100.00 IM International Large Cap Core Equity (MF) Median 0.52 -1.78 -1.18 4.01 8.17 3.55 167.74 106.94 Total Fixed Income 0.46 -0.53 -0.53 -0.39 1.88 2.10 18.77 30.29 Total Fixed Policy 0.21 -0.49 -0.74 0.06 1.60 1.96 100.00 100.00 Domestic Fixed Income 0.24 (81)0.14 (42)-1.09 (87)-0.05 (69)1.18 (71)1.96 (45)85.84 (52)88.73 (36) Domestic Fixed Income Policy 0.11 (96)0.09 (61)-1.05 (82)-0.07 (77)0.95 (92)1.70 (76)100.00 100.00 IM U.S. Intermediate Duration (SA+CF) Median 0.37 0.12 -0.90 0.01 1.37 1.91 86.20 80.56 Global Fixed Income 1.38 (6)-3.14 (56)1.66 (27)-1.74 (100)4.66 (5)N/A -91.22 (100)N/A Global Fixed Income Index 0.57 (16)-2.77 (54)0.49 (59)0.58 (59)5.17 (2)3.22 (11)100.00 100.00 IM Global Fixed Income (MF) Median -0.39 -2.23 0.76 0.66 2.36 1.39 101.81 109.16 Total Real Estate 1.96 (66)1.99 (74)1.99 (74)2.06 (72)N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core Equity (EW)2.08 (63)2.13 (65)2.17 (58)2.15 (57)9.08 (56)10.84 (61)N/A N/A IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 2.25 2.22 2.25 9.53 11.41 N/A N/A Tequesta General Employees' Retirement Plan Compliance Statistics As of September 30, 2018 Page 24 Tequesta General Employees' Retirement Plan Compliance Statistics As of September 30, 2018 1 Qtr Return 1 Quarter Ending Jun-2018Return 1 Quarter Ending Mar-2018Return 1 Quarter Ending Dec-2017Return 3 YR Return 5 YR Return 3 YRDown Market Capture 5 YRDown Market Capture Domestic Equity Strategies Dana Large Cap Core 5.67 (81)0.88 (93)-0.30 (45)7.99 (15)15.29 (69)13.28 (59)39.84 (55)107.78 (34) S&P 500 Index 7.71 (33)3.43 (33)-0.76 (66)6.64 (52)17.31 (30)13.95 (42)100.00 100.00 IM U.S. Large Cap Core Equity (SA+CF) Median 7.11 2.89 -0.40 6.67 16.11 13.57 46.76 98.47 Vanguard Total Stock Market Index (VITSX)7.09 (22)3.91 (19)-0.58 (47)6.34 (43)N/A N/A N/A N/A Russell 3000 Index 7.12 (19)3.89 (20)-0.64 (52)6.34 (43)17.07 (11)13.46 (11)100.00 100.00 IM U.S. Multi-Cap Core Equity (MF) Median 5.83 2.64 -0.61 6.13 14.53 11.56 93.84 106.51 International Equity Strategies EuroPacific Growth Fund R6 (RERGX)-0.84 (98)-2.82 (86)1.05 (8)4.23 (45)9.93 (6)N/A 160.28 (64)N/A MSCI AC World ex USA 0.80 (32)-2.39 (79)-1.08 (46)5.06 (13)10.49 (2)4.60 (15)100.00 100.00 IM International Large Cap Core Equity (MF) Median 0.52 -1.78 -1.18 4.01 8.17 3.55 167.74 106.94 Domestic Fixed Income Strategies Dana Intermediate Fixed Income 0.24 (81)0.14 (42)-1.09 (87)-0.05 (69)1.05 (86)1.88 (55)96.54 (24)97.49 (13) Domestic Fixed Income Policy 0.11 (96)0.09 (61)-1.05 (82)-0.07 (77)0.95 (92)1.70 (76)100.00 100.00 IM U.S. Intermediate Duration (SA+CF) Median 0.37 0.12 -0.90 0.01 1.37 1.91 86.20 80.56 Global Fixed Income Strategies Templeton Global Total Return R6 (FTTRX)1.38 (6)-3.14 (56)1.66 (27)-1.74 (100)4.66 (5)N/A -91.22 (100)N/A Global Fixed Income Index 0.57 (16)-2.77 (54)0.49 (59)0.58 (59)5.17 (2)3.22 (11)100.00 100.00 IM Global Fixed Income (MF) Median -0.39 -2.23 0.76 0.66 2.36 1.39 101.81 109.16 Real Estate Strategies ASB Real Estate 1.96 (66)1.99 (74)1.99 (74)2.06 (72)N/A N/A N/A N/A NCREIF Fund Index-Open End Diversified Core Equity (EW)2.08 (63)2.13 (65)2.17 (58)2.15 (57)9.08 (56)10.84 (61)N/A N/A IM U.S. Open End Private Real Estate (SA+CF) Median 2.35 2.25 2.22 2.25 9.53 11.41 N/A N/A Page 25 Estimated Annual Fee (%) 09/30/18 Market Value 09/30/18 Allocation (%) Estimated Annual Fee ($) Domestic Equity Dana Large Cap Core*0.65 1,519,541 26.69 9,877 Vanguard Total Stock Market Index (VITSX)**0.04 1,509,818 26.52 604 International Equity EuroPacific Growth Fund R6 (RERGX)**0.49 813,042 14.28 3,984 Domestic Fixed Income Dana Intermediate Fixed Income*0.25 997,134 17.51 2,493 Global Fixed Income Templeton Global Total Return R6 (FTTRX)**0.66 248,591 4.37 1,641 Real Estate ASB Real Estate**1.25 508,003 8.92 6,350 Cash Accounts R&D 97,059 1.70 - Total Fund 0.44 5,693,187 100.00 24,948 Tequesta General Employees' Retirement Plan Fee Analysis As of September 30, 2018 * Fee paid externally via Village checking account **Fee paid internally at the fund Page 26 Long-Term Manager Composite Data Page 27 Growth of a Dollar Dana Large Cap S&P 500 Index $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 $2.38$2.46 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR Dana Large Cap 6.30 (70)6.67 (81)15.12 (68)19.62 (26)15.50 (65)13.24 (60)16.59 (57)11.53 (65)10.42 (34) S&P 500 Index 7.71 (33)10.56 (38)17.91 (41)18.26 (43)17.31 (30)13.95 (42)16.91 (47)11.97 (52)9.65 (83) Median 7.11 9.76 17.33 17.91 16.11 13.57 16.81 12.03 10.19 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Dana Large Cap 15.12 (68)24.30 (6)7.67 (92)0.07 (50)20.80 (27)19.76 (60)31.27 (27)2.50 (34)11.26 (28) S&P 500 Index 17.91 (41)18.61 (53)15.43 (23)-0.61 (63)19.73 (45)19.34 (65)30.20 (44)1.14 (51)10.16 (41) Median 17.33 18.69 13.30 0.05 19.21 20.71 29.63 1.16 9.53 Dana Large Cap Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Large Cap Core Equity (SA+CF) Page 28 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present Dana Large Cap S&P 500 Index 5.4 6.3 7.2 8.1 9.0 9.9 10.8 11.7 R e t u r n (%) 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present Dana Large Cap S&P 500 Index 98.7 99.0 99.3 99.6 99.9 100.2 100.5 U p M a r k e t C a p t u r e R a t i o (%) 94.0 96.0 98.0 100.0 102.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error Dana Large Cap 52.27 -42.39 0.46 0.24 0.58 0.08 0.09 0.98 2.83 S&P 500 Index 0.00 -45.80 0.00 0.00 0.56 N/A 0.09 1.00 0.00 90 Day U.S. Treasury Bill 27.27 0.00 0.64 -8.80 N/A -0.56 0.00 -0.01 15.75 Dana Large Cap Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Large Cap Core Equity (SA+CF) Page 29 Growth of a Dollar Vanguard TSM Idx;Inst (VITSX)Russell 3000 Index $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 $2.40$2.42 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR Vanguard TSM Idx;Inst (VITSX)7.09 (22)10.61 (20)17.62 (19)18.13 (25)17.07 (11)13.44 (12)16.85 (15)12.09 (15)10.02 (13) Russell 3000 Index 7.12 (19)10.57 (22)17.58 (19)18.14 (25)17.07 (11)13.46 (11)16.86 (15)12.01 (17)9.86 (19) Median 5.83 7.91 14.51 16.10 14.53 11.56 15.25 10.46 8.84 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Vanguard TSM Idx;Inst (VITSX)17.62 (19)18.64 (38)15.00 (16)-0.57 (34)17.76 (31)21.52 (61)30.24 (17)0.72 (26)11.13 (26) Russell 3000 Index 17.58 (19)18.71 (36)14.96 (17)-0.49 (32)17.76 (31)21.60 (59)30.20 (18)0.55 (30)10.96 (29) Median 14.51 17.51 11.85 -1.88 16.33 22.79 26.86 -1.52 9.17 Vanguard TSM Idx;Inst (VITSX) Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Multi-Cap Core Equity (MF) Page 30 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present Vanguard TSM Idx;Inst (VITSX)Russell 3000 Index 2.0 4.0 6.0 8.0 10.0 R e t u r n (%) 12.0 14.0 16.0 18.0 20.0 22.0 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present Vanguard TSM Idx;Inst (VITSX)Russell 3000 Index 99.9 100.0 100.1 100.2 100.3 U p M a r k e t C a p t u r e R a t i o (%) 99.0 99.2 99.4 99.6 99.8 100.0 100.2 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error Vanguard TSM Idx;Inst (VITSX)59.09 -45.55 0.12 0.11 0.56 0.83 0.09 1.00 0.13 Russell 3000 Index 0.00 -45.95 0.00 0.00 0.55 N/A 0.09 1.00 0.00 90 Day U.S. Treasury Bill 29.55 0.00 0.64 -8.98 N/A -0.55 0.00 -0.01 16.25 Vanguard TSM Idx;Inst (VITSX) Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Multi-Cap Core Equity (MF) Page 31 Growth of a Dollar American Funds EuPc;R5 (RERFX)MSCI AC World ex USA $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 $1.15 $1.36 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR American Funds EuPc;R5 (RERFX)-0.86 (98)-2.68 (52)1.44 (46)10.58 (29)9.88 (6)6.15 (1)9.49 (2)6.81 (11)8.62 (5) MSCI AC World ex USA 0.80 (32)-2.67 (51)2.25 (20)10.84 (27)10.49 (2)4.60 (15)7.74 (61)5.67 (38)7.67 (17) Median 0.52 -2.63 1.34 9.65 8.17 3.55 8.07 4.83 6.77 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 American Funds EuPc;R5 (RERFX)1.44 (46)20.56 (21)8.47 (6)-4.97 (8)6.93 (12)18.22 (73)18.39 (13)-12.38 (75)7.35 (11) MSCI AC World ex USA 2.25 (20)20.15 (22)9.80 (4)-11.78 (78)5.22 (32)16.98 (75)15.04 (47)-10.42 (29)8.00 (5) Median 1.34 18.41 5.55 -7.83 4.19 21.59 14.76 -11.30 3.37 American Funds EuPc;R5 (RERFX) Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM International Large Cap Core Equity (MF) Page 32 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present American Funds EuPc;R5 (RERFX)MSCI AC World ex USA -1.8 -0.9 0.0 0.9 1.8 2.7 3.6 4.5 R e t u r n (%) 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 20.5 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present American Funds EuPc;R5 (RERFX)MSCI AC World ex USA 98.7 99.0 99.3 99.6 99.9 100.2 100.5 U p M a r k e t C a p t u r e R a t i o (%) 84.0 87.0 90.0 93.0 96.0 99.0 102.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error American Funds EuPc;R5 (RERFX)59.09 -45.07 1.65 1.31 0.25 0.37 0.05 0.91 3.51 MSCI AC World ex USA 0.00 -51.36 0.00 0.00 0.16 N/A 0.03 1.00 0.00 90 Day U.S. Treasury Bill 40.91 0.00 0.58 -3.12 N/A -0.16 0.00 -0.01 19.44 American Funds EuPc;R5 (RERFX) Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM International Large Cap Core Equity (MF) Page 33 Growth of a Dollar Dana Intermediate Bloomberg Barclays Intermed Aggregate Index $0.80 $1.00 $1.20 $1.40 $1.60 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 $1.43 $1.46 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR Dana Intermediate 0.30 (67)-0.59 (73)-0.54 (61)0.03 (61)1.34 (57)1.87 (57)2.33 (31)3.59 (67)3.51 (74) Bloomberg Barclays Intermed Aggregate Index 0.11 (96)-0.86 (95)-0.93 (96)-0.34 (94)0.95 (92)1.70 (76)1.72 (84)3.31 (89)3.47 (79) Median 0.37 -0.48 -0.39 0.11 1.37 1.91 2.08 3.75 3.75 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Dana Intermediate -0.54 (61)0.60 (62)4.00 (44)2.62 (56)2.76 (55)0.53 (17)6.51 (26)1.88 (97)7.51 (78) Bloomberg Barclays Intermed Aggregate Index -0.93 (96)0.25 (87)3.57 (73)2.95 (32)2.74 (58)-0.71 (77)4.31 (84)4.22 (23)7.52 (77) Median -0.39 0.70 3.90 2.70 2.88 -0.27 5.56 3.60 8.25 Dana Intermediate Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Intermediate Duration (SA+CF) Page 34 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present Dana Intermediate Bloomberg Barclays Intermed Aggregate Index 2.5 3.0 3.5 4.0 4.5 5.0 R e t u r n (%) 2.4 2.7 3.0 3.3 3.6 3.9 4.2 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present Dana Intermediate Bloomberg Barclays Intermed Aggregate Index 99.6 100.2 100.8 101.4 102.0 102.6 U p M a r k e t C a p t u r e R a t i o (%) 84.0 87.0 90.0 93.0 96.0 99.0 102.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error Dana Intermediate 61.36 -1.91 0.47 0.17 1.17 0.15 0.03 0.91 1.12 Bloomberg Barclays Intermed Aggregate Index 0.00 -2.05 0.00 0.00 1.13 N/A 0.03 1.00 0.00 90 Day U.S. Treasury Bill 27.27 0.00 0.49 -2.83 N/A -1.13 0.00 0.02 2.51 Dana Intermediate Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Intermediate Duration (SA+CF) Page 35 Growth of a Dollar Templeton Global Multisector Plus Global Fixed Income Index $0.40 $0.80 $1.20 $1.60 $2.00 $2.40 $2.80 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 4/17 10/17 4/18 9/18 $1.74 $2.11 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR Templeton Global Multisector Plus 0.64 (36)-1.55 (43)-2.92 (92)5.78 (3)4.53 (24)2.22 (49)4.91 (16)8.33 (1)8.62 (1) Global Fixed Income Index 0.57 (37)-1.73 (46)-1.16 (50)0.81 (57)5.17 (5)3.22 (27)4.01 (31)6.19 (15)6.16 (20) Median 0.11 -1.80 -1.17 1.33 3.54 2.03 2.73 4.09 4.52 Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 Templeton Global Multisector Plus -2.92 (92)15.27 (1)2.07 (96)-8.32 (97)6.56 (22)6.45 (7)17.76 (2)0.26 (85)20.22 (1) Global Fixed Income Index -1.16 (50)2.82 (53)14.46 (2)-3.75 (66)4.65 (43)-1.58 (65)14.19 (9)2.52 (61)12.95 (21) Median -1.17 3.25 8.37 -3.04 4.08 -0.40 8.33 3.17 8.93 Templeton Global Multisector Plus Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM Global Unhedged Fixed Income (SA+CF) Page 36 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present Templeton Global Multisector Plus Global Fixed Income Index 2.0 3.0 4.0 5.0 6.0 7.0 8.0 R e t u r n (%) 4.8 5.4 6.0 6.6 7.2 7.8 8.4 9.0 9.6 10.2 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present Templeton Global Multisector Plus Global Fixed Income Index 99.8 100.0 100.2 100.4 100.6 U p M a r k e t C a p t u r e R a t i o (%) 15.0 30.0 45.0 60.0 75.0 90.0 105.0 120.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error Templeton Global Multisector Plus 56.82 -8.96 3.24 1.96 0.75 0.27 0.09 0.77 7.34 Global Fixed Income Index 0.00 -11.65 0.00 0.00 0.66 N/A 0.05 1.00 0.00 90 Day U.S. Treasury Bill 36.36 0.00 0.61 -4.94 N/A -0.66 0.00 -0.01 7.49 Templeton Global Multisector Plus Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM Global Unhedged Fixed Income (SA+CF) Page 37 Growth of a Dollar ASB Allegiance Fund NCREIF Fund Index-Open End Diversified Core (EW) $0.00 $0.40 $0.80 $1.20 $1.60 $2.00 $2.40 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 9/18 $1.71 $1.91 Trailing Returns QTR YTD 1 YR 2 YR 3 YR 5 YR 7 YR 10 YR 15 YR ASB Allegiance Fund 1.96 (66)6.07 (74)8.26 (72)5.91 (100)7.46 (91)10.02 (76)11.23 (68)6.45 (9)9.11 (N/A) NCREIF Fund Index-Open End Diversified Core (EW)2.08 (63)6.52 (70)8.82 (67)8.31 (63)9.08 (56)10.84 (61)11.21 (69)5.35 (74)8.04 (N/A) Median 2.35 6.78 9.69 8.94 9.53 11.41 11.84 5.69 N/A Fiscal Year Returns FYTD FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 ASB Allegiance Fund 8.26 (72)3.61 (100)10.65 (68)15.06 (60)12.90 (49)13.22 (49)15.43 (28)18.56 (41)5.22 (68) NCREIF Fund Index-Open End Diversified Core (EW)8.82 (67)7.81 (60)10.62 (69)14.71 (62)12.39 (68)12.47 (67)11.77 (66)18.03 (44)6.14 (55) Median 9.69 8.29 11.32 15.45 12.78 13.18 12.90 16.96 6.43 ASB Allegiance Fund Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Open End Private Real Estate (SA+CF) Page 38 5 Year Rolling Percentile Ranking 0.0 25.0 50.0 75.0 100.0Return P e r c e n t i l e R a n k 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 9/18 Risk vs Return: October 2007 to Present ASB Allegiance Fund NCREIF Fund Index-Open End Diversified Core (EW) 3.5 4.2 4.9 5.6 6.3 7.0 7.7 R e t u r n (%) 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Risk (Standard Deviation %) Up/Down Markets: October 2007 to Present ASB Allegiance Fund NCREIF Fund Index-Open End Diversified Core (EW) 98.0 100.0 102.0 104.0 106.0 U p M a r k e t C a p t u r e R a t i o (%) 80.0 84.0 88.0 92.0 96.0 100.0 104.0 Down Market Capture Ratio (%) Historical Statistics: October 1, 2007 To September 30, 2018 Consistency Maximum Drawdown Alpha Active Return Sharpe Ratio Information Ratio Treynor Ratio Beta Tracking Error ASB Allegiance Fund 40.91 -34.71 1.53 1.01 0.74 0.32 0.07 0.91 3.11 NCREIF Fund Index-Open End Diversified Core (EW)0.00 -39.11 0.00 0.00 0.60 N/A 0.05 1.00 0.00 90 Day U.S. Treasury Bill 13.64 0.00 0.57 -4.91 N/A -0.60 0.00 0.00 8.23 ASB Allegiance Fund Long-Term Composite Performance As of September 30, 2018 Long-term composite performance. Actual client results may vary. October 2007 represents the beginning of the current market cycle. Peer Group: IM U.S. Open End Private Real Estate (SA+CF) Page 39 Tequesta General Employees' Pension Fund Compliance Checklist As of September 30, 2018 To t a l F u n d C o m p l i a n c e : Yes No N/A 1. T h e T o t a l P l a n r e t u r n e q u a l e d o r e x c e e d e d t h e N e t 7 . 0 % a c t u a ri a l e a r n i n g s a s s u m p t i o n o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  2. T h e T o t a l P l a n r e t u r n e q u a l e d o r e x c e e d e d t h e N e t 7 . 0 % a c t u a ri a l e a r n i n g s a s s u m p t i o n o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  3. T h e T o t a l P l a n r e t u r n e q u a l e d o r e x c e e d e d t h e t o t a l p l a n b e n ch m a r k o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  4. T h e T o t a l P l a n r e t u r n e q u a l e d o r e x c e e d e d t h e t o t a l p l a n b e n ch m a r k o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  5. T h e T o t a l P l a n r e t u r n r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e of i t s p e e r g r o u p o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  6. T h e T o t a l P l a n r e t u r n r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e of i t s p e e r g r o u p o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  Eq u i t y C o m p l i a n c e : Yes No N/A 1. T o t a l D o m e s t i c E q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e n c h m a rk o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  2. T o t a l D o m e s t i c E q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e n c h m a rk o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  3. T o t a l I n t e r n a t i o n a l E q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e nc h m a r k o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  4. T o t a l I n t e r n a t i o n a l E q u i t y r e t u r n e q u a l e d o r e x c e e d e d t h e b e nc h m a r k o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  5. T o t a l E q u i t y i n v e s t m e n t s d o n o t e x c e e d 7 0 % o f t h e m a r k e t v a l u e o f P l a n a s s e t s .  6. T o t a l m a r k e t v a l u e o f f o r e i g n s e c u r i t i e s d o n o t e x c ee d 2 5 % o f t h e m a r k e t v a l u e o f P l a n a s s e t s .  Fi x e d I n c o m e C o m p l i a n c e : Yes No N/A 1. T o t a l D o m e s t i c F i x e d I n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e b en c h m a r k o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  2. T o t a l D o m e s t i c F i x e d I n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e b en c h m a r k o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  3. T o t a l G l o b a l F i x e d I n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e b e n ch m a r k o v e r t h e t r a i l i n g t h r e e y e a r p e r i o d .  4. T o t a l G l o b a l F i x e d I n c o m e r e t u r n e q u a l e d o r e x c e e d e d t h e b e n ch m a r k o v e r t h e t r a i l i n g f i v e y e a r p e r i o d .  5. 9 5 % o f t h e f i x e d i n c o m e i n v e s t m e n t s h a v e a m i n i m u m r a t i n g o f i n v e s t m e n t g r a d e o r h i g h e r .  Ye s N o N / A Y e s N o N / A Y e s N o N / A 1. M a n a g e r o u t p e r f o r m e d t h e i n d e x o v e r t h e t r a i l i n g t h r e e y e a r pe r i o d .   2. M a n a g e r o u t p e r f o r m e d t h e i n d e x o v e r t h e t r a i l i n g f i v e y e a r p er i o d .   3. M a n a g e r h a s h a d l e s s t h a n 4 c o n s e c u t i v e q u a r t e r s o f u n d e r p e r fo r m a n c e .   4. M a n a g e r r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e o v e r t h e t r a i l in g t h r e e y e a r p e r i o d .   5. M a n a g e r r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e o v e r t h e t r a i l in g f i v e y e a r p e r i o d .   6. M a n a g e r t h r e e y e a r d o w n m a r k e t c a p t u r e r a t i o i s l e s s t h a n t h e i n d e x .   7. M a n a g e r f i v e y e a r d o w n m a r k e t c a p t u r e r a t i o i s l e s s t h a n t h e i n d e x .   Ye s N o N / A Y e s N o N / A Y e s N o N / A 1. M a n a g e r o u t p e r f o r m e d t h e i n d e x o v e r t h e t r a i l i n g t h r e e y e a r pe r i o d .   2. M a n a g e r o u t p e r f o r m e d t h e i n d e x o v e r t h e t r a i l i n g f i v e y e a r p er i o d .   3. M a n a g e r h a s h a d l e s s t h a n 4 c o n s e c u t i v e q u a r t e r s o f u n d e r p e r fo r m a n c e .   4. M a n a g e r r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e o v e r t h e t r a i l in g t h r e e y e a r p e r i o d .   5. M a n a g e r r a n k e d w i t h i n t h e t o p 4 0 t h p e r c e n t i l e o v e r t h e t r a i l in g f i v e y e a r p e r i o d .   6. M a n a g e r t h r e e y e a r d o w n m a r k e t c a p t u r e r a t i o i s l e s s t h a n t h e i n d e x .   7. M a n a g e r f i v e y e a r d o w n m a r k e t c a p t u r e r a t i o i s l e s s t h a n t h e i n d e x .   Ma n a g e r C o m p l i a n c e : Va n g u a r d I n d e x ( V I T S X ) E u r o p a c i f i c ( R E R G X ) Da n a D o m e s t i c Ma n a g e r C o m p l i a n c e : Da n a F i x e d T e m p l e t o n ( F T T R X ) A S B R e a l E s t a t e Pa g e 4 0 Total Domestic Equity Policy Allocation Mandate Weight (%) Jan-2004 S&P 500 Index 100.00 Apr-2017 Russell 3000 Index 100.00 Total Fund Policy Allocation Mandate Weight (%) Jan-1978 FTSE 3 Month T-Bill 100.00 Jan-2004 S&P 500 Index 60.00 FTSE 3 Month T-Bill 20.00 Blmbg. Barc. U.S. Gov't/Credit 20.00 Oct-2005 S&P 500 Index 60.00 Bloomberg Barclays Intermediate US Govt/Credit Idx 40.00 Dec-2009 S&P 500 Index 50.00 Bloomberg Barclays Intermediate US Govt/Credit Idx 40.00 MSCI EAFE Index 10.00 Jul-2012 S&P 500 Index 50.00 Bloomberg Barclays Intermed Aggregate Index 40.00 MSCI AC World ex USA 10.00 Sep-2013 S&P 500 Index 50.00 Bloomberg Barclays Intermed Aggregate Index 30.00 MSCI AC World ex USA 15.00 Global Fixed Income Index 5.00 Jul-2016 S&P 500 Index 50.00 Bloomberg Barclays Intermed Aggregate Index 20.00 MSCI AC World ex USA 15.00 Global Fixed Income Index 5.00 NCREIF Fund Index-Open End Diversified Core (EW)10.00 Apr-2017 Russell 3000 Index 50.00 MSCI AC World ex USA 15.00 Bloomberg Barclays Intermed Aggregate Index 20.00 Global Fixed Income Index 5.00 NCREIF Fund Index-Open End Diversified Core (EW)10.00 Total Fixed Policy Allocation Mandate Weight (%) Feb-2004 Blmbg. Barc. U.S. Gov't/Credit 100.00 Oct-2005 Bloomberg Barclays Intermediate US Govt/Credit Idx 100.00 Jul-2012 Bloomberg Barclays Intermed Aggregate Index 100.00 Sep-2013 Bloomberg Barclays Intermed Aggregate Index 86.00 Global Fixed Income Index 14.00 Apr-2017 Bloomberg Barclays Intermed Aggregate Index 80.00 Global Fixed Income Index 20.00 Global Fixed Income Index Allocation Mandate Weight (%) Jan-1994 JPM EMBI+33.33 Blmbg. Barc. U.S. Corp High Yield 33.33 FTSE Non-U.S. World Government Bond 33.34 Tequesta General Employees' Retirement Plan Benchmark History As of September 30, 2018 Page 41 · Neither AndCo, nor any covered associates, have made political contributions to any official associated with the Tequesta General Employees' Retirement Plan in excess of the permitted amount. Writeup Disclosures As of September 30, 2018 Page 42 Report Statistics Definitions and Descriptions A c t i v e R e t u r n - Ar i t h m e t i c d i f f e r e n c e b e t w e e n t h e m a n a g e r ’ s p e r f o r m a n c e a n d t h e d e s i g n a t e d b e n c h m a r k r e t u r n o v e r a s p e c i f i e d t i m e p e r i o d . A l p h a - A m e a s u r e o f t h e d i f f e r e n c e b e t w e e n a p o r t f o l i o ' s a c t u a l p e r f o r ma n c e a n d i t s e x p e c t e d r e t u r n b a s e d o n i t s l e v e l o f r i s k a s d e t er m i n e d b y b e t a . I t d e t e r m i n e s t h e p o r t f o l i o ' s no n - s y s t e m i c r e t u r n , o r i t s h i s t o r i c a l p e r f o r m a n c e n o t e x p l a i n e d b y m o v e m e n t s o f t h e m a r k e t . B e t a - A m e a s u r e o f t h e s e n s i t i v i t y o f a p o r t f o l i o t o t h e m o v e m e n t s i n t h e m a r k e t . I t i s a m e a s u r e o f t he p o r t f o l i o ' s s y s t e m a t i c r i s k . C o n s i s t e n c y - Th e p e r c e n t a g e o f q u a r t e r s t h a t a p r o d u c t a c h i e v e d a r a t e o f r e tu r n h i g h e r t h a n t h a t o f i t s b e n c hm a r k . H i g h e r c o n s i s t e n c y i n d i cates the manager has contributed more to the pr o d u c t ’ s p e r f o r m a n c e . D i s t r i b u t e d t o P a i d I n ( D P I ) - Th e r a t i o o f m o n e y d i s t r i b u t e d t o L i m i t e d P a r t n e r s b y t h e f u n d , r e l a t i v e t o c o n t r i b u t i o n s . I t i s ca l c u l a t e d b y d i v i d i n g c u m u l at i v e d i s t r i b u t i o n s b y p a i d in capital. This multiple sh o w s t h e i n v e s t o r h o w m u c h m o n e y t h e y g o t b a c k . I t i s a g o o d me a s u r e f o r e v a l u a t i n g a f u n d l a te r i n i t s l i f e b e c a u s e t h e r e a re more distributions to measure against. D o w n M a r k e t C a p t u r e - Th e r a t i o o f a v e r a g e p o r t f o l i o p e r f o r m a n c e o v e r t h e d e s i g n a t e d be n c h m a r k d u r i n g p e r i o d s o f n e g a t i v e r e t u r n s . A l o w e r v a l u e i n d icates better product performance D o w n s i d e R i s k - A m e a s u r e s i m i l a r t o s t a n d a r d d e v i a t i o n t h a t u t i l i z e s o n l y t h e ne g a t i v e m o v e m e n t s o f t h e r e t u r n s e r i e s . I t i s c a l c u l a t e d b y t a ki n g t h e s t a n d a r d d e v i a t i o n o f t h e n e g a t i v e qu a r t e r l y s e t o f r e t u r n s . A h i g h e r f a c t o r i s i n d i c a t i v e o f a r i sk i e r p r o d u c t . E x c e s s R e t u r n - Ar i t h m e t i c d i f f e r e n c e b e t w e e n t h e m a n a g e r ’ s p e r f o r m a n c e a n d t h e r i s k - f r e e r e t u r n o v e r a s p e c i f i e d t i m e p e r i o d . E x c e s s R i s k - A m e a s u r e o f t h e s t a n d a r d d e v i a t i o n o f a p o r t f o l i o ' s p e r f o r m a n c e r e l a t i v e t o t h e r i s k f r e e r e t u r n . I n f o r m a t i o n R a t i o - Th i s c a l c u l a t e s t h e v a l u e - a d d e d c o n t r i b u t i o n o f t h e m a n a g e r a n d i s de r i v e d b y d i v i d i n g t h e a c t i v e r a t e o f r e t u r n o f t h e p o r t f o l i o by the tracking error. The higher the In f o r m a t i o n R a t i o , t h e m o r e t h e m a n a g e r h a s a d d e d v a l u e t o t h e po r t f o l i o . P u b l i c M a r k e t E q u i v a l e n t ( P M E ) - De s i g n s a s e t o f a n a l y s e s u s e d i n t h e P r i v a t e E q u i t y I n d u s t r y t o e v a l u a t e t h e p e r f o r m a n c e o f a P ri v a t e E q u i t y F u n d a g a i n s t a p ublic benchmark or index. R - S q u a r e d - Th e p e r c e n t a g e o f a p o r t f o l i o ' s p e r f o r m a n c e t h a t c a n b e e x p l a i n ed b y t h e b e h a v i o r o f t h e a p p r o p r i a t e b e n c h m a r k . A h i g h R - S q u a r ed means the portfolio's performance has hi s t o r i c a l l y m o v e d i n t h e s a m e d i r e c t i o n a s t h e a p p r o p r i a t e b e n ch m a r k . R e t u r n - Co m p o u n d e d r a t e o f r e t u r n f o r t h e p e r i o d . S h a r p e R a t i o - Re p r e s e n t s t h e e x c e s s r a t e o f r e t u r n o v e r t h e r i s k f r e e r e t u r n di v i d e d b y t h e s t a n d a r d d e v i a t i o n o f t h e e x c e s s r e t u r n . T h e r e s ult i s a n a b s o l u t e r a t e o f r e t u r n p e r u n i t o f r i s k . A hi g h e r v a l u e d e m o n s t r a t e s b e t t e r his t o r i c a l r i s k - a d j u s t e d p e r f o rm a n c e . S t a n d a r d D e v i a t i o n - A s t a t i s t i c a l m e a s u r e o f t h e r a n g e o f a p o r t f o l i o ' s p e r f o r m a n c e . I t r e p r e s e n t s t h e v a r i a b i l i t y o f r e t u r n s a r o u n d t h e a v e r a g e r et u r n o v e r a s p e c i f i e d t i m e p e r i o d . T o t a l V a l u e t o P a i d I n ( T V P I ) - Th e r a t i o o f t h e c u r r e n t v a l u e o f r e m a i n i n g i n v e s t m e n t s w i t h i n a f u n d , p l u s t h e t o t a l v a l u e o f a l l d i s t r i b u t i o n s t o d a t e , r e l a tiv e t o t h e t o t a l a m o u n t o f c a p i t a l p a i d i n t o t h e f u n d to d a t e . I t i s a g o o d m e a s u r e o f p e r f o r m a n c e b e f o r e t h e e n d o f a f u n d ’ s l i f e T r a c k i n g E r r o r - Th i s i s a m e a s u r e o f t h e s t a n d a r d d e v i a t i o n of a p o r t f o l i o ' s r e t u r n s i n re l a t i o n t o t h e p e r f o r m a n c e o f i t s d e s i g n a t e d m a r k e t b e n c h m a r k . T r e y n o r R a t i o - Sim i l a r t o S h a r p e r a t i o b u t u t i l i z e s b e t a r a t h e r t h a n e x c e s s r i sk a s d e t e r m i n e d b y s t a n d a r d d e v i a t i o n . I t i s c a l c u l a t e d b y t a k in g t h e e x c e s s r a t e o f r e t u r n a b o v e t h e r i s k f r e e ra t e d i v i d e d b y b e t a t o d e r i v e t h e a b s o l u t e r a t e o f r e t u r n p e r un i t o f r i s k . A h i g h e r v a l u e i n d i c a t e s a p r o d u c t h a s a c h i e v e d b et t e r h i s t o r i c a l r i s k - a d j u s t e d p e r f o r m a n c e . U p M a r k e t C a p t u r e - Th e r a t i o o f a v e r a g e p o r t f o l i o p e r f o r m a n c e o v e r t h e d e s i g n a t e d be n c h m a r k d u r i n g p e r i o d s o f p o s i t iv e r e t u r n s . A h i g h e r v a l u e i n dicates better product performance. Pa g e 4 3 Disclosures An d C o c o m p i l e d t h i s r e p o r t f o r t h e s o l e u s e o f t h e c l i e n t f o r w hi c h i t w a s p r e p a r e d . A n d C o i s r e s p o n s i b l e f o r e v a l u a t i n g t h e pe r f o r m a n c e r e s u l t s o f t h e T o t a l F u n d a l o n g w i t h t h e i n v e s t m e n t advisors by comparing th e i r p e r f o r m a n c e w i t h i n d i c e s a n d o t h e r r e l a t e d p e e r u n i v e r s e da t a t h a t i s d e e m e d a p p r o p r i a t e . A n d C o u s e s t h e r e s u l t s f r o m t hi s e v a l u a t i o n t o m a k e o b s e r v at i o n s a n d r e c o m m e n d a t i o n s t o t h e client. An d C o u s e s t i m e - w e i g h t e d c a l c u l at i o n s w h i c h a r e f o u n d e d o n s t a n da r d s r e c o m m e n d e d b y t h e C F A I n s t i t u t e . T h e c a l c u l a t i o n s a n d v alu e s s h o w n a r e b a s e d o n i n f o r m a t ion that is received from cust odians. AndCo an a l y z e s t r a n s a c t i o n s a s i n d i c a t e d o n t h e c u s t o d i a n s t a t e m e n t s an d r e v i e w s t h e c u s t o d i a l m a r k e t v a l u e s o f t h e p o r t f o l i o . A s a r e s u l t , t h i s p r o v i d e s A n d C o w i th a r e a s o n a b l e b a s i s t h a t t h e i nvestment information pr e s e n t e d i s f r e e f r o m m a t e r i a l m i s s t a t e m e n t . T h i s m e t h o d o l o g y o f e v a l u a t i n g a n d m e a s u r i n g p e r f o rm a n c e p r o v i d e s A n d C o w i t h a pr a c t i c a l f o u n d a t i o n f o r o u r o b s er v a t i o n s a n d r e c o m m e n d a t i o n s . Nothing came to ou r a t t e n t i o n t h a t w o u l d c a u s e A n d C o t o b e l i e v e t h a t t h e i n f o r m at i o n p r e s e n t e d i s s i g n i f i c a n t l y m i s s t a t e d . Th i s p e r f o r m a n c e r e p o r t i s b a s e d o n d a t a o b t a i n e d b y t h e c l i e n t ’s c u s t o d i a n ( s ) , i n v e s t m e n t f u n d ad m i n i s t r a t o r , o r o t h e r s o u r c e s b e l i e v e d t o b e r e l i a b l e . W h i l e t h e s e s o u r c e s a r e b e l i e v e d t o be reliable, the data pr o v i d e r s a r e r e s p o n s i b l e f o r t he a c c u r a c y a n d c o m p l e t e n e s s o f th e i r s t a t e m e n t s . C l i e n t s a r e e n c o u r a g e d t o c o m p a r e t h e r e c o r d s o f t h e i r c u s t o d i a n ( s ) t o e n s u r e t h i s r e p o r t f a i r l y a n d a c c u r a t ely reflects their various as s e t p o s i t i o n s . Th e s t r a t e g i e s l i s t e d m a y n o t b e s u i t a b l e f o r a l l i n v e s t o r s . W e b e l i e v e t h e i n f o r m a t i o n p r o v i d e d h e r e i s r e l i a b l e , b u t d o n o t w a r r a n t i t s a c c u r a c y o r c o m p l e te n e s s . P a s t p e r f o r m a n c e i s n o t an indication of future pe r f o r m a n c e . A n y i n f o r m a t i o n c o nt a i n e d i n t h i s r e p o r t i s f o r i nf o r m a t i o n a l p u r p o s e s o n l y a n d s ho u l d n o t b e c o n s t r u e d t o b e a n o f f e r t o b u y o r s e l l a n y s e c u r i ti e s , i n v e s t m e n t consulting, or investment management se r v i c e s . Ad d i t i o n a l i n f o r m a t i o n i n c l u d e d i n t h i s d o c u m e n t m a y c o n t a i n d a ta p r o v i d e d b y f r o m i n d e x d a t a b a s e s , p u b l i c e c o n o m i c s o u r c e s a n d t h e m a n a g e r s t h e m s e l v e s . Th i s d o c u m e n t m a y c o n t a i n d a t a p r ov i d e d b y B l o o m b e r g B a r c l a y s . B l o o m b e r g B a r c l a y s I n d e x d a t a p r o v i d e d b y w a y o f B a r c l a y s L i v e. Th i s d o c u m e n t m a y c o n t a i n d a t a p r ov i d e d b y S t a n d a r d a n d P o o r ’ s . N o t h i n g c o n t a i n e d w i t h i n a n y d o c u m e n t , a d v e r t i s e m e n t o r p r e s e nt a t i o n f r o m S & P I n d i c e s c o n s t i t u t e s a n o f f e r o f s e r v i c e s i n j u risdictions where S& P I n d i c e s d o e s n o t h a v e t h e n e c e s s a r y l i c e n s e s . A l l i n f o r m a t i on p r o v i d e d b y S & P I n d i c e s i s i m p e r s o n a l a n d i s n o t t a i l o r e d t o t h e n e e d s o f a n y p e r s o n , e n t i t y o r g r o u p o f p e r s o n s . A n y r e t u r ns or performance pr o v i d e d w i t h i n a n y d o c u m e n t i s p r o v i d e d f o r i l l u s t r a t i v e p u r p o se s o n l y a n d d o e s n o t d e m o n s t r a t e ac t u a l p e r f o r m a n c e . P a s t p e r f or m a n c e i s n o t a g u a r a n t e e o f f u t u r e i n v e s t m e n t r e s u l t s . Th i s d o c u m e n t m a y c o n t a i n d a t a p r ov i d e d b y M S C I , I n c . C o p y r i g h t M S C I , 2 0 1 7 . U n p u b l i s h e d . A l l R i g h t s R e s e r v e d . T h i s i n f o r m a ti o n m a y o n l y b e u s e d f o r y o u r i n t e r n a l u s e , m a y n o t b e r e p r o d u ced or re d i s s e m i n a t e d i n a n y f o r m a n d m a y n o t b e u s e d t o c r e a t e a n y f i na n c i a l i n s t r u m e n t s o r p r o d u c t s o r a n y i n d i c e s . T h i s i n f o r m a t i on i s p r o v i d e d o n a n “ a s i s ” b a s i s a n d t h e u s e r o f t h i s i n f o r m a tion assumes the entire ri s k o f a n y u s e i t m a y m a k e o r pe r m i t t o b e m a d e o f t h i s i n f o r m at i o n . N e i t h e r M S C I , a n y o f i t s a f f i l i a t e s o r a n y o t h e r p e r s o n i n v o l v e d i n o r r e l a t e d t o c o m p ili n g , c o m p u t i n g o r c r e a t i n g t h i s information makes any ex p r e s s o r i m p l i e d w a r r a n t i e s o r r e p r e s e n t a t i o n s w i t h r e s p e c t t o s u c h i n f o r m a t i o n o r t h e r e s u l t s t o b e o b t a i n e d b y t h e u s e t h e re o f , a n d M S C I , i t s a f f i l i a t e s a n d e a c h s u c h o t h e r p e r s o n h e r e b y expressly disclaim all wa r r a n t i e s ( i n c l u d i n g , w i t h o u t l i m i t a t i o n , a l l w a r r a n t i e s o f o r ig i n a l i t y , a c c u r a c y , c o m p l e t e n e s s , t i m e l i n e s s , n o n - i n f r i n g e m e n t , m e r c h a n t a b i l i t y a n d f i t n e s s f o r a p a r t i c u l a r p u r p o s e ) w i t h r e spect to this information. Wi t h o u t l i m i t i n g a n y o f t h e f o r e g o i n g , i n n o e v e n t s h a l l M S C I , an y o f i t s a f f i l i a t e s o r a n y o t h er p e r s o n i n v o l v e d i n o r r e l a t e d t o c o m p i l i n g , c o m p u t i n g o r c r e at i n g t h i s i n f o r m a t i o n h a v e a n y liability for any direct, indirect, sp e c i a l , i n c i d e n t a l , p u n i t i v e , c on s e q u e n t i a l o r a n y o t h e r d a m a g es ( i n c l u d i n g , w i t h o u t l i m i t a t i o n , l o s t p r o f i t s ) e v e n i f n o t i f i ed o f , o r i f i t m i g h t o t h e r w i s e h a v e a n t i c i p a t e d , t h e p o s s i b i l i ty of such damages. Th i s d o c u m e n t m a y c o n t a i n d a t a p r o v i d e d b y R u s s e l l I n v e s t m e n t G ro u p . R u s s e l l I n v e s t m e n t G r o u p i s t h e s o u r c e o w n e r o f t h e d a t a c o n t a i n e d o r r e f l e c t e d i n t h i s m a t e r i a l a n d a l l t r a d e m a r k s a n d copyrights related th e r e t o . T h e m a t e r i a l m a y c o n t ain c o n f i d e n t i a l i n f o r m a t i o n a n d u n a u t h o r i z e d u s e , d i s c l o s u r e , c op y i n g , d i s s e m i n a t i o n o r r e d i s t ri b u t i o n i s s t r i c t l y p r o h i b i t e d . T h i s i s a u s e r p r e s e n t a t i o n o f the data. Russell Investment Gr o u p i s n o t r e s p o n s i b l e f o r t he f o r m a t t i n g o r c o n f i g u r a t i o n o f t h i s m a t e r i a l o r f o r a n y i n a c c u r a c y i n p r e s e n t a t i o n t h e r e o f . Th i s d o c u m e n t m a y c o n t a i n d a t a pr o v i d e d b y M o r n i n g s t a r . A l l r i gh t s r e s e r v e d . U s e o f t h i s c o n t e n t r e q u i r e s e x p e r t k n o w l e d g e . I t i s t o b e u s e d b y s p e c i a l i s t i n s ti t u t i o n s o n l y . T h e i n f o r m a tion contained herein: (1) is pr o p r i e t a r y t o M o r n i n g s t a r a n d / o r i t s c o n t e n t p r o v i d e r s ; ( 2 ) m a y n o t b e c o p i e d , a d a p t e d o r d i s t r i b u t e d ; a n d ( 3 ) i s n o t w a r r a n t ed t o b e a c c u r a t e , c o m p l e t e o r t i m e l y . N e i t h e r M o r n i n g s t a r n o r its content providers are re s p o n s i b l e f o r a n y d a m a g e s o r l o s s e s a r i s i n g f r o m a n y u s e o f t hi s i n f o r m a t i o n , e x c e p t w h e r e s u c h d a m a g e s o r l o s s e s c a n n o t b e li m i t e d o r e x c l u d e d b y l a w i n y o ur j u r i s d i c t i o n . P a s t f i n a n c i a l performance is not gu a r a n t e e o f f u t u r e r e s u l t s . Pa g e 4 4 No Text