HomeMy WebLinkAboutDocumentation_Pension General_Tab 03_11/02/2015 Vi I lage of Teq uesta
General Employees'
�
Retirement Plan
I nvestment Performance Review
As of: September 30, 2015
Preliminary Report
Preliminary Report Data
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BOGDAHN
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GROUP�
W W W. B O G D A H N G R O U P. C O M sinrpli�j�in, ►'nur i�t��eshnent an�l, fiduciarl' dc�cl.sinns
3rd Quarter 2015 Market Environment
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Page 1 � BOGDAHN
` GxoUP
The Market Environment
Major Market Index Performance
As of September 30, 2015
• During the third quarter of 2015, broad equity markets posted their Quarter Performance
weakest returns since the third quarter of 2011. Macroeconomic and MSCI ACWxUS -12.2%
geopolitical news drove the volatility of global equity markets MSCI EAFE -10.2°/o
throughout the quarter. Domestic markets fared modestly better than MSCI Emerg Mkts -17.9%
international indices but still posted negative returns for the quarter.
Improving domestic economic data was overshadowed by the Federal S&P 500 -6.4%
Open Market Committee's (Fed) decision to leave short-term interest Russe113000 -7.2°/o
rates unchanged, citing low inflation expectations and a weakening Russe111000 -6.8%
global economy as reasons to maintain an accommodative monetary Russell MidCap -8.0%
policy. The uncertainty surrounding the Fed's rate decision caused Russe112000 -11.9%
investors to accelerate sales out of risk assets. As a result, the S&P garclays US Agg �.z�io
500 experienced its first correction since 2011, falling 12.0% from its garclays US Govt �.�°ro
intra-quarter high. Barciays us TiPS -�.��ro
Barclays MBS 1.3%
• Non-U.S. equity indices posted the weakest equity returns during the garclays Corp IG o.a�ro
quarter with all three bellwether benchmarks posting double-digit
losses in U.S. dollars (USD) during the third quarter. Export heavy 3-Month T-Bill o.o�ro
emerging markets were the hardest hit during the quarter with a USD
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0%
return of -17.9%. Similar to domestic equity markets, the negative
results of international equity markets were driven by macroeconomic 1-Year Performance
events. As the world's second largest economy and largest exporter of MSCI ACWxUS -12.2%
goods, China's slowing economic growth prospects dominated MSCI EAFE -8.7%
headlines throughout the quarter. While the potential impact of a MSCI Emerg Mkts
Chinese slowdown resonated throughout the financial markets -19.3%
emerging market and commodity driven economies experienced the S&P 500 -0.6%
greatest negative impact. In addition to China's events, Greece Russe113000 -0.5%
secured its third bailout from the European Union (EU) and Japan, and Russell 1000 -0.6%
EU policymakers signaled further quantitative easing may be Russell MidCap -0.2%
Russell 2000 1.2%
necessary to combat deflationary concerns.
U.S. fixed income indices were modestly positive for the third quarter Barclays US Agg z.s�io
� Barclays US Govt
with high yield securities and TIPs being exceptions. The U.S. garclays US TIPS -0.8°/o 3.�°ro
Treasury yield curve flattened during the quarter with short-term garclays MBS 3.4%
interest rates remaining relatively unchanged and longer term rates garclays Corp IG �.��ro
declining. As a result of this flattening, longer dated maturities
outperformed short-term issues. a-Moncn T-e�u o.o�ro
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0%
Source:InvestmentMefrics � THF
Page 2 � BOGDAHN
� GROUP
The Market Environment
Domestic Equity Style Index Performance
As of September 30, 2015
Quarter Performance - Russell Style Series
• Regardless of style or size, domestic equity index performance was
negative across the style and capitalization spectrum during the third 3000 Value -8.6%
quarter. While most broad corporate fundamentals appeared to be 30001ndex -7.2%
solid and the U.S. consumer benefited from lower oil prices, negative 3000 GrOwth -5.9%
performance during the third quarter was largely driven by the volatility
associated with global macroeconomic and geopolitical events. Chief 1000 Value -8.4%
factors driving volatility during the quarter included the "will they — won't 1000 Index -6.8%
they" uncertainty associated with the Fed's interest rate decision and 1000 Growth -5.3%
attempts to assess the global ramifications of an economic slowdown in
China, which was larger than anticipated. M�dcap vaiue -s.o�ro
■ Outside of macroeconomic and geopolitical factors impacting equity MidCap Index -8.0%
performance, there were two notable trends affecting U.S. domestic MidCap Growth -8.0°/o
equity results during the third quarter of 2015. First, large cap indices
generally outperformed their small cap counterparts, with the latter 2000 Value -10.7%
delivering double-digit losses for the quarter. Second, growth stocks 20001ndex -11.9%
were the strongest relative performers in the large cap universe, while 2000 Growth -13.1%
in the small cap universe value indices posted moderately better -�5.o°io -�o.o°io -5.o°io o.o�io
relative results. Within the large cap Russell 1000 Growth Index, the
quarter's relative performance benefited from the annual reconstitution 1-Year Performance - Russell Style Series
of the index series each June. This year's reconstitution reduced 3000 Value -4.2%
exposure to the weak performing energy sector in the large cap growth 3000 Index -0.5%
index from more than 5% to less than 1% after reconstitution.. s000 �rowtn 3.2°io
■ From a valuation perspective, current P/Es for the value indices were 1000 Value _q,q�/
roughly in-line with their long-term averages with the mid-cap value 10001ndex -0.6%
index P/E appearing slightly stretched at 106% of its long-term
1000 Growth 3.2%
average. In contrast, current P/E valuations for the growth indices
remained well below their long-term averages with P/E valuation levels
falling between 80% and 85% of their historical averages. Miacap vaiue -2.�°ro
MidCap Index -0.2%
■ On a trailing one-year basis, growth indices illustrated a substantial MidCap Growth �.a�ro
return premium over value benchmarks across the capitalization
spectrum. The performance differentials were largely due to the growth 2000 Value -1.6%
benchmarks' heavier weights to the strong-performing health care and 2000 Index �.z�ro
information technology sectors. 2000 �rowtn a.o�ro
-6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
Source� Investment Metrics THE
Page 3 � BOGDAHN
� GROUP
The Market Environment
GICS Sector Performance 8� (Sector Weight)
As of September 30, 2015
■ Sector performance was broadly negative for large cap stocks with
Russell 1000 ■Quarter ❑1-Year
nine of the ten GICS sectors posting negative results for the quarter. consumer �isc ��s.s°io -3.4% 11.2%
The utilities sector was the only large cap economic sector that
managed a positive result for the quarter with a return of 4.6%. Consumer Staples (8.7°io -1.1%
s.��ro
Commodity price driven sectors were the hardest hit during the quarter o
with the energy and materials sectors returning -18.4% and -16.8% Energy(7.1%) -18.4/0
respectively. The large cap health care sector, which had not posted a Financials (17.5%) -31.4% _6 �o�
negative quarterly return since the third quarter of 2011, was also 1.1%
notable with a return of -11.1 % for the quarter. Within the health care Health Care (15.0% -11.1% 6 2io
0
sector, pharmaceutical and biotech stocks struggled from the general Industrials (10.6% -� 3° %
"risk-off" environment permeating the third quarter but sold-off -3.a°io
deliberatel after Democratic residential candidate Hillar Clinton Info Technolo °
Y p Y 9Y �19.3%) � 1.8%
alluded to a plan to combat high prescription drug costs. Traditional o
defensive sectors, such as utilities and consumer staples, posted the Materials (3.3%) 1 6
strongest relative pertormance for the quarter. Over the one-year Telecom Services (2.2% -s.s�ro
trailing period, six of ten sectors remain positive with commodity driven -� ���°
energy (-31.4%) and materials (-17.3%) sectors representing double- ut�i�t�es �2.s°io� a s��ro
dlglt nOQatIV@ OUtll@fS. -35.0% -25.0% -15.0% -5.0% 5.0% 15.0%
Similar to large cap indices, small cap index performance was negative Russell 2000 ■Quarter ❑1-Year
■ for the quarter. Within the small cap index, all ten GICS sectors posted Consumer Disc (14.6% -11.9%
negative results for the quarter with six sectors posting double-digit 5.4%
losses. For the quarter, sector performance followed a similar pattern Consumer Staples (3.1% -4 �°%
5.9%
to large cap sector results with commodity sensitive sectors posting the o
Ener9Y (3.4%) -32.8 /a
weakest results and defensive sectors offering the greatest relative
safety. Over the one-year trailing period, six of ten small cap index Financials (24.5%) -55.0% -5.2%
sectors remained positive with commodity driven energy (-55.0%) and o
a. � �ro
materials (-21.3%) sectors representing substantial double-digit Health Care (16.6%) -17.1 /o
0 16.2%
Il@gatlVe OUt I@I"S. Industrials (12.6%) -15.6/0 7 5%
■ Using the S&P 500 as a proxy, based on trailing P/E ratios, six GICS InfoTechnology(17.1% -�o.a�ro �,5�ro
sectors show P/E ratios lower than their 20-year averages at quarter o
end. Within these sectors, the information technology and financials Materials (3.8% -2� 3�io
sectors appeared the most undervalued relative to their long-term Telecom Services (0.8% - s.o�ro
average P/E ratios. In contrast, the telecommunication services and o.a�ro
utilities sector valuations appeared most stretched versus historical P/E Utilities (3.4% - 2° �°
9.9%
ratio data. -so.o -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%
Source: MorningstarDirect Tfil(
Page 4 �� . BOGDAHN
� GROUP
The Market Environment
Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000
As of September 30, 2015
I:(a�oi'd0} . • e��9'{oA:1;C=, U(a��a�'il(BI\ra�tolCc��1(-d6. � :f�-�
p�d�� I. "(cts� 'i:�14� i 'i:E:li
16y�1��f=i°l�iill.tXl . ..._.... .. ,,.. 1eA7C __ =�x-¢ii�.q�� d A'e'l:��q��i� "�rt�iim�� .
a a o � r. _i,:
' .. B . : I�t'�id oS- a . . ,, _� ...,
Apple Inc 3.28% -11.7% 11.3% Information Technology I yler Technologies Inc 0.31% 15.4% 68.9% Information Technology
Microsoft Corp 1.85% 0.9% -2.0% Information Technology Anacor Pharmaceuticais Inc 0.29% 52.0% 381.0% Health Care
Exxon Mobil Corporation 1.61% -9.8% -18.3% Energy Manhattan Associates Inc 0.28% 4.4% 86.4% Information Technology
Johnson & Johnson 1.34% -3.5% -9.9% Health Care CubeSmart 0.28% 18.2% 55.4% Financials
General Electric Co 1.31% -4.2°/o 2.0% Industrials Investors Bancorp Inc 0.26% 0.7% 24.4% Financials
Berkshire Hathaway Inc Class B 1.25°/o -42% -5.6% Financials First American Financial Corp 0.26% 5.7% 482% Financials
Wells Fargo & Co 1.24% -8.1 % 1.6% Financials Casey's General Stores Inc 0.24% 7.7% 44.9% Consumer Staples
JPMorgan Chase & Co 1.17% -9.4°/o 3.9% Financials Maximus Inc 0.24% -9.3% 48.9°/o Information Technology
AT&T Inc 1.02% -7.0% -2.3% Telecommunication Services West Pharmaceutical Services Inc 0.24°/o -6.7% 21.9% Health Care
Procter & Gamble Co 1.01% -7.3% -11.4% Consumer Staples Team Health Holdings Inc 0.24% -17.3% -6.8% Health Care
,,r i, t.-, a ,�r€'r�, it i j:c f�9: 1���,� . �� - +*i��..l� a�Ir1'.. �, ,. `^�� 1 I�ri;`i
�.r i l
;-�il , .. . � , � 1 I'.. i, , � '!'( i i , � r;��
, �. ,. _ . I'o� i Ix ... I;r� I-t .����..
StanCorp Financial Group Inc 0.02°/o 51.0% 84.3% Financials GT Advanced Technologies Inc 0.00% 135.7% -96.3% Information Technology
TECO Energy Inc 0.03% 502% 58.0% Utilities NTELOS Holdings Corp 0.01% 95.5% -15.1% Telecommunication Services
Pandora Media lnc 0.02% 37.3% -11.7% Information Technology Phoenix Companies Inc 0.00% 80.9% -41.2% Financials
Cablevision Systems Corp Class A 0.03% 36.4% 90.7% Consumer Discretionary Trevena Inc 0.02% 65.3% 61.2% Health Care
zulily Inc Class A 0.00% 33.4% -54.1 % Consumer Discretionary Dot Hill Systems Corp 0.04% 59.0% 157.4% Information Technology
AGL Resources Inc 0.04% 32.5% 23.7% Utilities Anacor Pharmaceuticals Inc 0.29°/o 52.0% 381.0% Health Care
Chubb Corp 0.15% 29.5% 37.5% Financials Exelixis Inc 0.08°/o 492% 266.7% Health Care
Activision Blizzard Inc 0.08% 27.6% 50.1% Information Technology Merge Healthcare Inc 0.03°/o 47.9% 222.7% Health Care
Con-way Inc 0.00% 24.2% 1.3% Industrials HHGregg Inc 0.00% 45.8% -22.8% Consumer Discretionary
JetBlue Airways Corp 0 04% 24 1% 1427% Industrials Thoratec Corp 0.21 % 41.9% 1367% Heafth Care
I:'.1�f�t��i1 �dloill'i°i�.io` ! I�'�Yo1q't�i�n�illo�lY(d l�
. ._. -___-__.__.. . . _ ._ ..___. . __._.- _..__.__. . _., �
I-iVP-t-(=1U C(otoloi A'n'l=ftq�oS � �' 7yl-i=f-11� -{e aloi �. 1"e't: �
SunEdison Inc 0.01% -76.0% -62.0% Information Technology Quiksilver Inc 0.00% -97.0% -98.9% Consumer Discretionary
SandRidge Energy Inc 0.00% -69.2% -93.7% Energy RCS Capital Corp Class A 0.00°/o -89.4% -96.4% Financials
Seventy Seven Energy Inc 0.00% -67.8% -94.2% Energy Alpha Natural Resources Inc 0.00% -89.1% -98.7% Energy
TimkenSteel Corp 0.00% -62.2% -77.7% Materials BPZ Resources Inc 0.00% -88.8% -99.9% Energy
TerraForm Power Inc Class A 0.00% -62.0% -48.9% Utilities SFX Entertainment Inc 0.00% -88.6% -89.8% Consumer Discretionary
Rayonier Advanced Materials Inc 0.00°/o -61.9% -81.0% Materials Penn Virginia Corp 0.00% -87.9% -95.8% Energy
Denbury Resources Inc 0.00% -61.0% -83.1% Energy Vantage Drilling Co 0.00% -86.5% -98.0% Energy
The Chemours Co 0.01% -59.6% N/A Materials Tetraphase Pharmaceuticals Inc 0.02% -84.3% -62.6% Health Care
EP Energy Corp Class A 0.00% -59.5% -70.5% Energy Altisource Asset Management Corp 0.00% -83.4% -96.5% Financials
Unit Corp 0.00% -58.5% -80.8% Energy Magnum Hunter htesources Corporation 0.00% -81.8% -93.9% Energy
Source: Morningstar Direct THE
Page 5 � BOGDAHN
� GROUP
The Market Environment
International and Regional Market Index Performance (Country Count)
As of September 30, 2015
■ With negative macroeconomic and geopolitical events throughout
Quarter Performance ■USD ❑Local Currency
the quarter trumping any consideration of underlying fundamentals AC World x US (45) -�2.2%
or long-term prospects, international equity index performance was _9.6�i°
broadly negative. As stated previously, uncertainty over events WORLD x US (22) -10.6%
-a.s�ro
such as China's economic health and a potential Greek exit of the -�o.z�ro
eurozone, pushed all major international equity indices lower. While EAFE (21) 9 �
developed markets fared modestly better than emerging markets, -s.��ro
the majority of foreign market results struggled relative to the Europe & ME (16) 6 90
perceived safety and stability of U.S. markets. Local currency index Pacific (5) -�3.2%
returns were marginally less negative than USD returns due to the -128 ��°
strengthening of the USD versus most other major currencies. Emer9in9 Mkt (23) -�� g ��°
-12.1%
• Developed markets outperformed emerging markets tor the quarter EM EMEA (10) -16.1%
-�. s�ra
with the MSCI EAFE Index outperforming the MSCI Emerging
Market Index by 7.7% and 3.1 % in USD and local currency EM Asia (8) 17 �% -13.5/0
0
respectively. Improving economic data in the eurozone was
encouraging, with GDP growth for the ninth consecutive quarter, but EM Latin Amer (5) _24.3°/o -10.8°/o
economic data in Japan was mixed. Both European Central Bank -25.0 -20.0% -15.0% -10.0% -5.0% o.o°io
Chairman Draghi and Bank of Japan Governor Kuroda reiterated a ■us� ❑Local Currency
willingness to support further quantitative easing should it be 1-Year Performance
deemed necessary. Commodity price sensitive economies such as AC World x US (45) -12.2%
Canada, Australia, and several emerging markets faced particularly -� ���°
strong headwinds due to the headlines surrounding slowing growth WORLD x US (22) -10.1%
-o. � �ro
in China.
EAFE (21) -8.7%
0.8%
• Emerging markets posted large negative equity results for the -s.z�ro
quarter. Led by the imposition of capital controls associated with its Europe & ME (16) � 20
latest bailout deal with the EU, Greece represented the weakest Pacific (5) -7.5%
performance in the MSCI Emerging Markets Index, returning -35.8%
for the quarter. Chinese equities fell -22.7% during the quarter after Emerging Mkt (23) -19 3% 0 2.��io
a devaluation of the yuan and mounting evidence of decelerating -�.� �°
economic growth. Latin America had the weakest performance as EM EMEA (10) -21 ���°
-z.a�ro
falling commodity prices and a weakened macro outlook in Brazil
EM Asia (8) -13.1%
negatively affected the region. Like developed markets, countries -6.6�ro
with more diversified economies performed better than economies
heavily linked to commodity exports. EM �at�n Amer �5� 38 �o�o -�2.5�ro
-40.0% -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0%
Source: MSCI Global Index Monitor (Retums are Net) � THE
Page 6 � BOGDAHN
� GROUP.
The Market Environment
U.S. Dollar International Index Attribution & Country Detail
As of September 30, 2015
• . ,i'fu�Vld�� �.-i,I `;11�bt¢�. �:7 i.����1. `.:I�.
I' � .", � 1 Ls
Consumer Discretionary 13.1 % -11.0% -� �% �apan 22.5% 16.5% -11.8% -22%
Consumer Staples 12.0% -1.5% 1.7% United Kingdom 20.3% 14.8% -10.0% -12.1%
Energy 4.8% -16.8°/o -34.50�o France 10.1% 7.4% -6.5% -7.7°/o
Switzerland 9.7% 7.1% -7.0% -3.8%
Financials 25.8% -12.1% - 92 ° �o Germany 8.9% 6.5% -10.9% -9.3%
Health Care 11.8% -5.3% -3.20�o Australia 6.4% 4.7% -15.3% -21.1%
Spain 3.5°/o 2.5% -11.1% -20.6%
IflduStfi81S 12.5% -11.2% -$ 9% HOflg KOflg 3.0% 2.2% -16.2% -3.3%
Information Technology 4.8% -10.6% -5.8% Sweden 3.0% 22% -9.2% -10.5%
Materials 6.6°/o -19.7% -22.1% Netherlands 2.8% 2.0% -8.9% -2.0%
Italy 2.6% 1.9% -4.4% -9.3%
Telecommunication Services 4.9% -9.5% -3.3% Denmark 1.8% 1.3% -2.4% 6.7%
Utllltles 3.8% -4.2% -11 0% Belglum 1.3% 1.0% -7.9% -0.8%
•. � � �' , ypP;,•�1;, , SiflgBpOfe 1.3% 0.9% -19.5% -21.4%
Finland 0.9% 0.6% -5.5% -8.8%
� ��'h�G� i 1"t.f�i :<3!���i�; ISfBeI 0.6% 0.5% -5.6% 2.6%
Nofway 0.6°/o 0.4% -19.1% -35.9%
Consumer Discretionary 12.0% -11.3% -3.2% Ireland 0.4% 0.3% -3.2% 10.9%
ConsumerStaples 10.9% -3.2% -0.6°/o Austria 0.2% 0.1% -9.0% -10.3%
Portugal 0.2% 0.1% -11.6% -25.5%
Energy 6.3% -20.1% -3�.2% NewZealand 0.1% 0.1% -7.1% -18.7%
Financials 27.3% -14.1% -12.3% . � � �' � �' � �n�.:'"��
Health Care 9.6% -6.2% _2 Canada 6.4% -14.1% -23.9%
� • ..•. . ��ro.i� ., . ,
IndUStfi81S 11.1% -11.7% -112% Chlna 4.8% -22.7% -5.0%
Information Technology 7.4% -13.3% -8.6% Korea 32% -11.8% -18.4%
Materials 6.7% -20.8% _2g.2o�o Taiwan 2.6% -17.0% -11.3%
India 1.8% -6.7% -5.9%
Telecommunication Services 5.2% -11.3% -8.8% South Africa 1.6% -18.6% -142%
Ulilitles 3.6% -7.0% -14.2% BrBZiI 1.3% -33.6% -48.4%
Mexico 1.0% -12.0% -24.0%
i� ��, � ,
" Russia 0.8% -14.8% -27.1%
Malaysia 0.6% -18.2% -33.7%
�°� �"�'�' �°°`��'�'!�''" `;;� ���: Thailand 0.5% -17.6% -237%
Consumer Discretionary 9.4°/o -13.9°/o -15.6% Indonesia 0.4% -242% -32.9%
ConsumerStaples 8.8°/o -11.4% -12.1% Poland 0.30% -10.80% -26.0%
Philippines 0.3 /o -10.3 /o -5.7 /o
Energy 7.5% -25.3% 37.4% Turk2y 0.3% -19.5% -23.8%
Financials 28.6% -21.4% -18.10�o Chil2 0.3% -13.6% -21.2%
Qatar 0.2% -6.6% -18.3%
Health Care 2.9% -9.5% '$ �% United Arab Emirates 02°/o -10.4% -26.4%
IndUStrialS 7.5% -16.0% -17.8% Colombia 0.1% -23.2% -50.5%
Information Technology 18.1% -16.0% -11.3% Peru 0.1% -21.5% -26.2%
Greece 0.1% -35.8% -66.0%
Materials 6.6% -19.4% -30.0% HUngafy 0.1% -3.3% 6.7%
Telecommunication Services 7.4% -15.6% -20.1 % Czech Republic 0 0% -6 6% -22.3%
-------- -
UtIIIt12S 3.4% -16.8% -24.5% Egypt _ _ _0.0% -12.9% -24.3°/a
a(NdC:k_, -. ----- - ; . "'°�, ,
• � � � � ..� `���i�. i �:d��'�
. . . . • . �jd�ll:}= il(0(01�01'/�r , .
Source: MSCI Global Index Monitor (Returns are Net in USD) � �I����1r,
Pa �( BOGDAHN
` ° GROUP
The Market Environment
Domestic Bond Sector 8� Broad/Global Bond Market PerFormance (Duration)
As of September 30, 2015
■ Most fixed income index performance was modestly positive for Quarter Performance
the third quarter. Much of the quarter's positive fixed income AAA (5.0) 1.5%
benchmark performance was attributable to macroeconomic AA (5.9) �.z�ro
and geopolitical uncertainty in the global markets. As it A(6.9) 1.5%
typically does, this volatility resulted in a"flight to quality/safety" Baa (7.5) -0.7%
benefiting domestic fixed income securities. In contrast to the U.S. High Yield (4.4)
benefit of perceived safety, bond performance was tempered U.S. Treasury (5.8) -4 9% �.a�io
during the period by the looming specter surrounding the timing
of the first expected Fed interest rate hike in nearly ten years. u.s. nnortgaqe �a.2� 1.3%
U.S. Corporate IG (7.1) 0.8%
■ The broad market Aggregate benchmark posted a return of U.S. TIPS (5.5) -1.1%
1.2% for the quarter. Within the Aggregate index, Treasury
(1.8%) issues outperformed mortgage (1.3%) and corporate Aggregate (5.6) �.2�ro
(0.8%) issues. In anticipation of higher interest rates, corporate Intermediate Agg (4.1) 1.1%
bond issuance remained elevated during the quarter. Coupled Global Agg x US (7.4) o.s�ra
with a general "risk-off' market, this excess corporate bond
Multiverse (6.5) 0.5%
suppiy drove credit spreads wider (equivalent to interest rates
rising) resulting in weaker corporate performance relative t0 -5.0% -4.0 -s.o°io -2.o°io -i.o°io o.o°io �.o°io 2.o°io
Treasury securities. The spread widening was particularly 1-Year Performance
detrimental to high yield bond returns which actually posted qqA (5.0) 3.6%
negative returns for the quarter.
AA (5.9) 3.0%
■ Despite USD strength, international bond indices (0.6% and A(6.9) z.s�io
0.5%) managed positive results for the quarter but trailed Baa (7.5) -0.5%
domestic bond index results other than Baa, high yield, and U.S. High Yield (4.4) -3.4%
TIPS ISSUeS. U.S. Treasury (5.8) 3.8°/o
U.S. Mortgage (4.2) " 3.4°/o
• Over the trailing one-year period, domestic fixed income results
were largely solid. However, like the third quarter, one-year U.S. Corporate IG (7.1) �.��ro
performance for domestic Baa, high yield, and TIPs issues U.S. TIPS (5.5) -0.8%
were negative along with both global benchmarks.
Aggregate (5.6) 2.9%
Intermediate Agg (4.1) 2.9%
Global Agg x US (7.4)
Multiverse (6.5) -� ���° -3.6%
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0%
Source: Barclays Capita/ Live � THE:
Page 8 �( BOGDAHN
♦ GROUP.
The Market Environment
Market Rate & Yield Curve Comparison
As of September 30, 2015
• During the third quarter, following a substantial rise during the 1-Year Trailing Market Rates
3.50
second quarter, intermediate and long-term U.S. Treasury Fed Funds Rate TED Spread 3-Month Libor
yields retrenched to levels last seen at the end of 2014. Yields BAA OAS 10yr Treasury 10yr TIPS
fell across the Treasury curve for all maturities greater than two 3.00
years with the yield on the 30-year Treasury falling from 3.11 %
to 2.87%. Since prices and yields move in opposite directions, 2.50 -•
����� ����`� � ����
longer-dated issues were the best performing Treasury maturity `�i J ��� "yf�
segment. As with recent periods, accommodative Fed policy 2.00
held yields stable and low at the short end of the yield curve.
1.50
■ Much of the performance reviewed on the bar graphs is visible
in another form in the 1-year trailing market rates chart. The
10-year Treasury (green line) can be seen moving lower (yields �.00
falling) throughout the quarter, resulting in a positive Treasury
return. While corporate issues benefited from falling Treasury o.50
�',
yields, corporate bonds were also impacted by the credit ����,�
spread (risk premium) investors demand on corporate issues to o.00
compensate them fOf the increased risk associated Wlth Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
corporate bonds versus "riskless" Treasury debt. This credit Treasury Yield Curve
spread is represented by the BAA OAS (Option Adjusted 3.50 -
Spread). The BAA �AS (bIU@ line) Call be seen rising �12/31/2014 v3/31/2015 �-0-�6/30/2015 • o�9/30/2015
throughout the quarter, which created a drag on corporate bond s.00 - �
returns.
2.50 -
• Based on moderate U.S. economic growth, stable employment, �
and below target inflation, it is unlikely the Fed will increase the
short-term interest rate it sets (Fed Funds Rate) significantly in 2.00 -
the near term. Should the Fed raise the short-term rate before
the end of the year, they have stated future increases would be 1.50 -
implemented at a measured pace and with an ongoing
assessment of current economic data. Geopolitical events, �.00 -
overseas quantitative easing programs, and lower interest rates
outside the U.S. should put downward pressure on how high o.50 -
domestic rates can go in the near term. `,
o.00 -
1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
Source: US Departmenf of Treasury, FRED (Federal Reserve of St. LouisJ � ���lil',
Page 9 � BOGDAHN
� GxouP.
Tequesta General Employees' Retirement Plan
Asset Allocation by Asset Class
As of Seqtember 30. 2015
Asset Allocation By Segment as of Asset Allocation By Segment as of
June 30, 2015 :$3,689,136 September 30, 2015 :$3,564,699
■ •
Allocation Allocation
Segments Market Value Allocation Segments Market Value Allocation
■ Domestic Equity 1,789,668 48.5 ■ Domestic Equity 1,667,814 46.8
International Equity 562,824 15.3 International Equity 534,529 15.0
Iw Domestic Fixed Income 1,071,605 29.0 Ea Domestic Fixed Income 1,122,529 31.5
Global Fixed Income 174,930 4.7 Global Fixed Income 177,763 5.0
■ Cash Equivalent 90,110 2.4 ■ Cash Equivalent 62,063 1.7
THF
Page 10 � BOGDAHN
`-�`? GxouP.
Tequesta General Employees' Retirement Plan
Asset Allocation by Manager
As of Sentember 30. 2015
Asset Allocation By Manager as of Asset Allocation By Manager as of
June 30, 2015 :$3,689,136 September 30, 2015 :$3,564,699
Ailocation Allocation
Market Value Allocation Market Value Allocation
�i Dana Balanced Portfolio 2,909,933 78.9 I I Dana Balanced Portfolio 2,824,999 79.2
EuroPacific Growth Fund R6 (RERGX) 562,824 15.3 EuroPacific Growth Fund R6 (RERGX) 534,529 15.0
I 1 Templeton Global Total Return R6 (FTTRX) 174,930 4.7 I I Templeton Global Total Return R6 (FTTRX) 177,763 5.0
R&D 41,451 1.1 R&D 27,408 0.8
TH F'.
Page 11 �( BOGDAHN
` � GROUP
Tequesta General Employees' Retirement Plan
Asset Allocation vs Target Allocation
As of September 30, 2015
Asset Allocation vs. Target Allocation
Domestic Equity -3z i
International Equity o.or
Domestic Fixed Income � sr
Global Fixed Income o.oi
Cash Equivalent � ��
-10.0 % -9.0 % -6.0 % -3.0 % 0.0% 3.0% 6.0% 9.0% 10.0%
� Allocation Differences
Asset Allocation vs. Target Allocation
Market Value Allocation (%) Target (%)
$
Domestic Equity 1,667,814 46.8 50.0
International Equity 534,529 15.0 15.0
Domestic Fixed Income 1,122,529 31.5 30.0
Global Fixed Income 177,763 5.0 5.0
Cash Equivalent 62,063 1.7 0.0
Total Fund 3,564,699 100.0 100.0
� TH F;
Page 12 �( f . BOGDAHN
`°Y"''� GROUP
� Tequesta General Employees' Retirement Plan
Asset Allocation vs Other Public Pension Plans
As of September 30, 2015
Plan Sponsor TF Asset Allocation vs. All Public Plans-Total Fund
68.0
60.0
52.0
�
44.0
36.0 . _
0
� �
0 p
s+ ZV.O
m
U j
O �
Q
2�.� . ... _.
�
12.0
• �'� '
4.0 .... .
�
� �
-4.0
-12.0
US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash
� Tequesta General Employees 46.79 (49) 15.00 (15) 31.49 (57) 4.99 (23) 0.00 0.00 1.74 (35)
5th Percentile 58.06 20.97 43.06 6.52 40.54 11.76 3.31
1st Quartile 50.08 14.67 36.56 4.97 15.66 9.40 2.08
Median 46.73 13.37 32.94 4.71 6.91 6.83 1.26
3rd Quartile 43.12 10.87 27.00 4.46 5.10 5.25 0.80
95th Percentile 34.73 8.00 18.18 4.04 1.24 1.93 0.52
Parentheses conlam percentile rankings.
Calculatfon based on <Periodicity> periodicity. TIiF.
Page 13 � BOGDAHN
� GROUP
Asset Allocation History by Portfolio
Total Fund
As of September 30, 2015
Sep-2015 Jun-2015 Mar-2015 Dec-2014 Sep-2014
�$) % ($) % �$) ° /u �$) ° /u �$) %
Dana Balanced Portfolio 2,824,999 79.25 2,909,933 78.88 2,846,949 77.92 2,786,051 79.84 2,674,366 79.89
EuroPacific Growth Fund R6 (RERGX) 534,529 15.00 562,824 15.26 551,035 15.08 520,005 14.90 442,555 13.22
Templeton Global Total Return R6 (FTTRX) 177,763 4.99 174,930 4.74 173,252 4.74 172,721 4.95 149,320 4.46
R&D 27,408 0.77 41,451 1.12 82,419 2.26 10,766 0.31 81,464 2.43
Total Fund 3,564,699 100.00 3,689,136 100.00 3,653,654 100.00 3,489,544 100.00 3,347,705 100.00
THt:
Page 14 �( BOGDAHN
`-°�'� GROUP.
Tequesta General Employees' Retirement Plan
Asset Aliocation History by Asset Class
September 1, 2007 To September 30, 2015
96.0
88 A '
80A �
72.0
�:
i `
�
64A �
i"
0 56A
c
0
:�
� 48.0
0
a
40.0
32.0
24.0
16.0
8.0
OA
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 9/15
j � Domes'tic Equity International Equiiy i Domestic Fixed income Giobal Fixed income C Cash Equivaleni
'Ct��•.
Page 15 � BOGDAHN
� � � GROUP
Tequesta General Employees' Retirement Plan
Financial Reconciliation
1 Quarter Ending September 30, 2015
Market Value Net Management Other Apprec./ Market Value
07/01/2015 Transfers Contributions Distributions Fees Expenses Income Deprec. 09/30/2015
Dana Balanced Portfolio 2,909,933 38,464 - - -4,058 -84 18,166 -137,421 2,824,999
EuroPacific Growth Fund R6 (RERGX) 562,824 26,349 - - - - - -54,644 534,529
Templeton Global Total Return R6 (FTTRX) 174,930 14,571 - - - - 1,718 -13,456 177,763
R&D Account 41,451 -79,384 87,630 -11,476 - -10,814 2 - 27,408
Total Fund 3,689,136 - 87,630 -11,476 -4,058 -10,898 19,885 -205,520 3,564,699
� Tti�:
Page 16 �( BOGDAHN
`�� GROUP.
Tequesta General Employees' Retirement Plan
Financial Reconciliation
October 1, 2014 To September 30, 2015
Market Value Net Management Other Apprec./ Market Value
10/01/2014 Transfers Contributions Distributions Fees Expenses �ncome Deprec. 09/30/2015
Dana Balanced Portfolio 2,674,366 135,738 - - -15,481 -1,682 69,507 -37,449 2,824,999
EuroPacific Growth Fund R6 (RERGX) 442,555 116,665 - - - - 8,388 -33,079 534,529
Templeton Global Total Return R6 (FTTRX) 149,320 42,562 - - - - 13,627 -27,746 177,763
R&D Account 81,464 -294,965 308,429 -17,765 - -49,761 6 - 27,408
Total Fund 3,347,705 - 308,429 -17,765 -15,481 -51,443 91,528 -98,274 3,564,699
�rHH.
Page 17 � BOGDAHN
� GROUP
Tequesta General Employees' Retirement Plan
Trailing Returns
As of September 30, 2015
QTR FYTD 1 YR 3 YR 4 YR 5 YR Inception Inception
Date
Total Fund (Gross) -4.97 (45) 0.06 (33) 0.06 (33) 7.87 (22) 10.53 (24) 8.69 (18) 5.73 (26) 11/01/2000
Total Fund Policy -4.82 (41) -1.32 (76) -1.32 (76) 6.96 (59) 9.64 (57) 7.91 (46) 4.86 (85)
All Public Plans-Total Fund Median -5.05 -0.35 -0.35 7.10 9.74 7.78 5.40
Total Fund (Net) -5.08 -0.37 -0.37 7.34 9.98 8.14 5.42 11/01/2000
Equity Strategies
Dana Core Equity -7.45 (69) 0.16 (47) 0.16 (47) 13.98 (30) 18.08 (28) 14.77 (23) 7.90 (40) 11/01/2005
S&P 500 Index -6.44 (46) -0.61 (60) -0.61 (60) 12.40 (62) 16.61 (59) 13.34 (58) 7.04 (81)
IM U.S. Large Cap Core Equity (SA+CF) Median -6.66 -0.02 -0.02 12.95 16.99 13.61 7.66
EuroPacific Growth Fund R6 (RERGX) -9.81 (27) -4.93 (5) -4.93 (5) N/A N/A N/A -6.11 (3) 06/01/2014
MSCI AC World ex USA -12.10 (75) -11.78 (82) -11.78 (82) 2.78 (81) 5.72 (70) 2.27 (77) -11.41 (81)
IM International Large Cap Core Equity (MF) Median -10.76 -8.61 -8.61 3.90 6.57 3.19 -10.22
Fixed Income Strategies
Dana Fixed Income 1.32 (5) 3.31 (12) 3.31 (12) 2.16 (18) 3.30 (16) 3.22 (20) 4.79 (42) 11/01/2005
Barclays Intermediate Aggregate Index 1.08 (32) 2.95 (29) 2.95 (29) 1.64 (55) 2.31 (73) 2.69 (60) 4.47 (80)
IM U.S, Intermediate Duration (SA+CF) Median 0.93 2.64 2.64 1.69 2.60 2.83 4.69
Templeton Global Total Return R6 (FTTRX) -6.79 (100) -8.14 (94) -8.14 (94) N/A N/A N/A -2.50 (77) 11/01/2013
Global Fixed Income Index -1.38 (69) -3.75 (50) -3.75 (50) -0.29 (46) 3.15 (22) 3.02 (22) -0.72 (48)
IM Global Fixed Income (MF) Median -0.35 -3.75 -3.75 -0.53 1.24 1.26 -0.90
Retums for penods greater ihan one year are annualized. ReWms are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains iniernahonal prior to 7/1/2009. � THE
Page 18 �( BOGDAHN
`-�`� GROUP.
A i � R'
Tequesta General Employees' Retirement Plan
Fiscal Year Returns
As of Septe 30, 2015
Comparative Performance
FYTD FY 2014 FY 2013 FY 2012 FY 2011 FY 2010
Total Fund (Gross) 0.06 (33) 11.92 (14) 12.09 (59) 18.89 (30) 1.62 (24) 10.01 (48)
Total Fund Policy -1.32 (76) 11.5A (19) 11.19 (73) 1£3.06 (46) 1.28 (30) 9.40 (66)
nll Public Plans-�I�otal I iind IVk:di<�n -0.35 10.13 12.65 17.�3F3 0.32 9.96
Total Fund (Net) -0.37 11.35 11.50 18.29 1.08 9.43
Equity Strategies
Dana Core Equity 0.16 (47) 21.51 (22) 21.69 (36) 31.26 (27) 2.43 (34) 11.17 (28)
S&P 500 Index -0.61 (60) 19.73 (�6) 19.34 (65) 30.?_0 (45) 1.14 (51) 10.16 (41)
IM U.S. Large CaF� Core Lquity (t�n�+�CF) Mcdian ��0.02 1926 ?_0.70 29 11 1.15 9.50
Dana InYI Portfolio N/A N/A 18.47 (82) 18.71 (27) -12.18 (84) 5.74 (57)
MSCI AC World ex USA -11.78 (97) 5.?2 (55) 16.9£� (89) 15.04 (79) -10 42 (67) 8.00 (27)
IM International L.arge Cap Core Equity (Sf�+CF) Median -6.5II 6.09 22.59 17.32 -9.1 £3 621
EuroPacific Growth Fund R6 (RERGX) -4.93 (5) N/A N/A N/A N/A N/A
MSCI AC World c;x USn -11.78 (F32) !i22 (21) 16 9�3 (76) 15 04 (46) -10.42 (��0) 8.00 (6)
IM International Large Cap Core Equity (MF) Median -8.61 3.6II 20 90 14.87 -10.87 3.76
Fixed Income Strategies
Dana Fixed Income 3.31 (12) 2.98 (45) 0.21 (27) 6.80 (23) 2.89 (78) 8.73 (33)
E3arclays Intermeciiate flggregate Index 7_.9!i (29) 2.�I�1 (59) -0 71 (7£3) �4 3�1 (B4�) 4.22 (23) 7.52 (77)
IM U.S. Intermediate Duration (SA+Cf-) Meciian 264 2.£3t3 -0.26 5.59 3.60 8.27
Templeton Global Total Return R6 (FTTRX) -8.14 (94) N/A N/A N/A N/A N/A
Global Fixed Income Index -3.75 (50) 4.65 (38) -1.58 (52) 14.19 (3) 2.52 (39) 12.95 (11)
IM Global Fixed Income (MF) Median -3.75 3.53 -1.52 7.19 1.61 7.82
Retums for periods greater than one year are annualized. Retums are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contams intemaUonal prior to 7/1/2009. � 'I'HE
Page 19 � BOGDAHN
�-�K GROUP
Tequesta General Employees' Retirement Plan
Total Fund Performance Review
As of September 30. 2015
Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund
16.00 28.00
12.00 24.00
�
�
� 20.00
8.00 � � �
� �
� O 16.00
4.00 i
12.00 � O � O �:
c L
� 0.00 � A � B O
� � � � 8.00 '. � �.
-q oo )
� ° a.00
-s ao
� � S
#,. o.00 �
�
-i z.00
-a oo �
-16.00 -8.00
Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009 Oct-2008
To To To To To To
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009
• Total Fund (Gross) -4.97 (45) 0.06 (33) 0.06 (33) 5.82 (15) 7.87 (22) 10.53 (24) 8.69 (18) • Total Fund (Gross) 11.92 (14) 12.09 (59) 18.89 (30) 1.62 (24) 10.01 (48) 1.76 (49)
O Total Fund Policy -4.82 (41) -1.32 (76) -1.32 (76) 4.91 (41) 6.96 (59) 9.64 (57) 7.91 (46) O Total Fund Policy 11.54 (19) 11.19 (73) 18.06 (46) 1.28 (30) 9.40 (66) 0.48 (66)
Median -5.05 -0.35 -0.35 4.75 7.10 9.74 7.78 Median 10.13 12.55 17.88 0.32 9.96 1.63
Comparative Performance
1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr
Ending Ending Ending Ending Ending Ending
J u n-2015 Ma r-2015 Dec-2014 Se p-2014 J u n-2014 Ma r-2014
Total Fund (Gross) -0.44 (72) 2.63 (36) 3.05 (19) -0.80 (32) 4.08 (22) 2.10 (23)
Total Fund Policy Q03 (38) 1.47 (96) 2 15 (53) -0.36 (14) 4 07 (22) 1.56 (65)
All Public Plans-Total Fund Median -0.13 2.44 2.25 -1.13 3.63 1.72
THt,
Page 20 � BOGDAHN
� GROUP
� , . w
Tequesta General Employees' Retirement Plan
Total Fund Performance Review
As of Seutember 30. 2015
3 Yr Rolling Under/Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years
24.0 Y 0 0
� Over c
;� 18.0 Performance m 25.0 0 Q 0 � � � � � �
� - 0 O p � � O ��� �•
U 12.0 • 0 50.0 O � � Q � � � � � �
v � O O
� 6.0 o a
LL : 75.0 O O �
�
;a 0.0 Under d �
� Performance �
� � 100.0
-G.0 0.0 6.0 12.0 18.0 24.0 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15
Total Fund Policy ( % )
Total Period 5 25 Median 75
Q Over Performance � Under Performance COUnt COUnt CoUnt CoUnt
O Total Fund (Gross) 20 10 (50%) 8(40%) 1(5%) 1(5%)
� Earliest Date � Latest Date O Total Fund Policy 20 0(0%) 6(30%) 12 (60%) 2(10%)
Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years
a�o 899
.... 7.80 • ., 8.68 �
o =
�750 �8.37
� 7.20 � 8.06
� 6.90 � 775 O
6.60 7A4
5.95 6.02 6.09 6.16 623 6.30 6.37 6.44 6.51 7.0 72 7.4 7.6 7.8 8.0
Risk (Standard Deviation % ) Risk (Standard Deviation % )
Return Standard Return Standard
Deviation Deviation
O Total Fund (Gross) 7.87 6.06 O Total Fund (Gross) 8.69 7.41
O Total Fund Policy 6.96 6.30 O Total Fund Policy 7.91 7.26
- Median 7.05 6.39 - Median 776 7.84
Historical Statistics - 3 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio Beta Risk
Capture Capture
Total Fund (Gross) 1.46 101.11 89.33 129 0.57 1.28 0.94 3.57
Total Fund Policy 0_00 10Q00 100.00 0 00 N/A 1.09 1 00 3.67
Historical Statistics - 5 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio Beta Risk
Capture Capture
Total Fund (Gross) 1.42 103.58 97.12 0.72 0.52 1.16 1.00 4.44
Tbtal Pund Pollcy 0.00 100 00 100_00 0.00 N/A 1.08 1 00 4.22
�TH e.
Page 21 � BOGDAHN
� GROUP.
Tequesta General Employees' Retirement Plan
Dana Core Equity Performance Review
As of Seatember 30. 2015
Peer Group Analysis - IM U.S. Large Cap Core Equity (SA+CF)
30.00 44.00
25.00
36.00
20.00 �
O
� � 2s o0
i5oo Q 0
O � � • •
� zo 0o O O
i000
O
� �
� 5.00 � 12.00
� � �O
o.00 • � A �
a o0
�
� O
-s oo �
O � �-
� -a.00
-i o 00
+� -- �_.. .
-i2.00
-i s.00
-zo 00 -20 00
Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009
To To To To To To
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010
• Dana Core Equity -7.45 (69) 0.16 (47) 0.16 (47) 10.32 (33) 13.98 (30) 18.08 (28) 14.77 (23) • Dana Core Equity 0.16 (47) 21.51 (22) 21.69 (36) 31.26 (27) 2.43 (34) 11.17 (28)
O S&P 500 Index -6.44 (46) -0.61 (60) -0.61 (60) 9.09 (56) 12.40 (62) 16.61 (59) 13.34 (58) O S&P 500 Index -0.61 (60) 19.73 (46) 19.34 (65) 30.20 (45) 1.14 (51) 10.16 (41)
Median -6.66 -0.02 -0.02 9.44 12.95 16.99 13.61 Median -0.02 19.26 20.70 29.77 1.15 9.50
Comparative Performance
1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr
Ending Ending Ending Ending Ending Ending
Jun-2015 Mar-2015 Dec-2014 Sep-2014 Jun•2014 Mar-2014
Dana Core Equity -0.77 (80) 2.66 (35) 6.23 (19) -0.42 (84) 5.85 (14) 4.00 (6)
S&P 500 Index 0.28 (48) 0 95 (75) 4-93 (54) 1 13 (44) 5.23 (31) 1.81 (63)
IM U.S. Large Cap Core Equity (SA+CF) Median 0.25 1:88 5.04 0.99 4.83 2.06
THF.
Page 22 � BOGDAHN
� GROUP
Tequesta General Employees' Retirement Plan
Dana Core Equity Performance Review
As of Seatember 30. 2015
3 Yr Rolling Under/Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years
so.o x o 0
\ Over q
°-- Performance
>' 20.0 O O n 25.0 Q � � � � � � � � � � • �
Q � 0
�,00 � �500 o°og�� °oo�000°00000
o a
� O O
' 0.0 � 75.0
�
m Under m
o �
Performance
-10.0 100.0
-10.0 0.0 10.0 20.0 30.0 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15
S&P 50o Index (% � 5-25 25-Median Median-75 75-95
Q Over Performance � Under Performance Total Period Count Count Count Count
� Dana Core Equity 20 8(40%) 10 (50%) 2(10%) 0(0%)
� Earliest Date � Latest Date O S&P 500 Index 20 0(0%) 7(35%) 13 (65%) 0(0%)
Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years
14.56 15.19
,.., 14.04 O _. 1470 �
v °
� 13.52 � 14.21
� 13.00 � 13.72
� 12.48 O � 1323 O
11.96 12.74
874 8.97 920 9.43 9.66 9.89 10.12 10.35 1221 1258 12.95 13.32 13.69 14.06 14A3 14.80
Risk (Standard Deviation % � Risk (Standard Deviation %)
Retu rn Stan da rd Retu rn Sta n d a rd
Deviation Deviation
� Dana Core Equity 13.98 10.12 O Dana Core Equity 14.77 14.27
O S&P 500 Index 12.40 9.04 O S&P 500 Index 13.34 12.79
__ Median 12.95 9.41 - Median 13.61 13.36
Historical Statistics - 3 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio Beta Risk
Capture Capture
Dana Core Equity 2.42 103.59 92.75 1.52 0.59 1.38 0.99 5.43
S&P 500 Index 0 00 100_00 �100 00 0_00 N/A 1 26 1 00 5.39
Historical Statistics - 5 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio BeYa Risk
Capture Capture
Dana Core Equity 2.39 105.11 98.83 1.03 0.56 1.22 1.02 6.93
S&P 500 Index 0 00 100.00 100 00 0.00 N/A 1-15 1-00 6 50
�rF��:
Page 23 � BOGDAHN
� GROUP
TH�
Page 24 � BOGDAHN
� GROUP
Tequesta General Employees' Retirement Plan
Europacific Growth Fund R6 (RERGX) Performance Review
As of Seatember 30. 2015
Peer Group Analysis - IM International Large Cap Core Equity (MF)
zo.00 aa.00
15.00 36.00
10.00 28.00
5.00 � 20.00
0 � � O
0.00 12.00
�
� � �
° -5.00 O O . ° 4.00 �
m d
� �
-10.00 � -4.00 �
� � �
�
-15.00 -12.00 �
� � �
-20.00 ' -20.00
-25.00 -28.00
30.00 -36.00
Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009
To To To To To To
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010
O EuroPacific Growth -9.81 (27) -4.93 (5) -4.93 (5) N/A N/A N/A N/A � EuroPacific Growth -4.93 (5) N/A NIA N/A N/A N/A
O MSCI AC World ex USA �12.10 (75) �11.78 (82) �11.78 (82) -3.65 (56) 2J8 (81) 572 (70) 227 (77) O MSCI AC World ex USA 11.78 (82) 5.22 (21) 16.98 (76) 15.04 (46) 10.42 (40) 8.00 (6)
Median �10.76 -8.61 -8.61 -3.28 3.90 6.57 3.19 Median -8.61 3.68 20.90 14.87 10.87 3.76
Comparative Performance
1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr
Ending Ending Ending Ending Ending Ending
J u n-2015 Ma r-2015 Dec-2014 Se p-2014 J u n-2014 Ma r-2014
EuroPacific Growth 1.12 (37) 5.97 (7) -1.63 (10) -4.21 (15) N/A N/A
MSCI f�C World ex USA 0J2 (59) 3.59 (F31) 3 81 (h2) 5 19 (45) 5.25 (14) 0 61 (27)
IM Intemational Large Cap Core Equity (MF) Median 0.87 5.14 4.08 5.67 4.02 0.00
THF:
Page 25 � BOGDAHN
� GROUP
Tequesta General Employees' Retirement Plan
Dana Fixed Portfolio Performance Review
As of Seatember 30. 2015
Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF)
s s� i � o0
4.88
14.00
4.19 �
11A0
3.50
e s � o � e
a.00
2.si � � � � O
•
z iz � � e.00
E E
' Y
� �• � O p
L43 • O . .. •� �� �
2.00
0
074 �
o.os
� -i oo �
a.00
-0.64
-1.33 -7A0
Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009
To To To To To To
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010
• Dana Fixed Portfolio 1.32 (5) 3.31 (12) 3.31 (12) 3.15 (19) 2.16 (18) 3.30 (16) 3.22 (20) • Dana Fixed Portfolio 3.31 (12) 2.98 (45) 0.21 (27) 6.80 (23) 2.89 (78) 8.73 (33)
O Barclays Interm Agg Index 1.08 (32) 2.95 (29) 2.95 (29) 2.84 (38) 1.64 (55) 2.31 (73) 2.69 (60) O Barclays Interm Agg Index 2.95 (29) 2.74 (59) -0.71 (78) 4.31 (84) 4.22 (23) 7.52 (77)
Median 0.93 2.64 2.64 2.69 1.69 2.60 2.83 Median 2.64 2.88 -0.26 5.59 3.60 8.27
Comparative Performance
1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr
Ending Ending Ending Ending Ending Ending
J u n-2015 M a r-2015 Dec-2014 Sep-2014 J u n-2014 Ma r-2014
Dana Fixed Portfolio -0.84 (86) 1.52 (41) 1.29 (10) 0.04 (39) 1.50 (39) 1.40 (32)
Barclays Intermediate Aggregate Index -0.67 (62) 1 32 (79) 120 (18) 0.03 (39) 1.62 (28) 1.20 (52)
IM U S. Intermediate Duration (SA+CF) Median -0.61 1 47 0 93 0.01 1.40 122
THE.
Page 26 � BOGDAHN
� GROUP.
Tequesta General Employees' Retirement Plan
Dana Fixed Portfolio Performance Review
As of Seatember 30. 2015
3 Yr Rolling Under/Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years
- io.o y o.o
� over c
o a � Performance �
m 25.0 � � 0 � � � � � � � • r •
w -
y 6.0 � �
a � �� 0 50.0 Q Q O �
�20 �� =�50 00°8°0��0000°0000°O°
w
c Under d �
m
� Performance �
0.0 100.0
0.0 2.0 4.0 6.0 8.0 10.0 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 9/15
Barclays Intermediate Aggregate Index (% � 5-25 25-M@d'18n Med'18n-75 75-95
� Over Performance � under Performance Total Period Count Count Count Count
O Dana Fixed Portfolio 20 5(25%) 8(40%) 4(20%) 3(15%)
� Earliest Date � Latest Date O Barclays Interm Agg Index 20 0(0%) 0(0%) 11 (55%) 9(45%)
Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years
2.40 3.40
... 2.20 O ..., 3.20 •
e o
� 2.00 � 3.00
� 1.80 v 2.80 O
� 1.60 � 2.60
1.40 2 40
1.80 1.82 L84 1.86 1.88 1.90 1.92 1.92 1.95 1.98 2.01 2.04 2.07 2.10 2.13
Risk (Standard Deviation % � Risk (Standard Deviation %)
Retu rn Sta n d a rd Retu rn Sta n da rd
Deviation Deviation
• Dana Fixed Portfolio 2.16 1.90 p Dana Fixed Portfolio 3.22 2.09
O Barclays Interm Agg Index 1.64 1.88 O Barclays Interm Agg Index 2.69 1.97
- Median 1.69 1.84 - Median 2.83 2.03
Historical Statistics - 3 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio Beta Risk
Capture Capture
Dana Fixed Portfolio 0.55 102.27 80.37 0.57 0.91 1.02 0.96 1.16
Barclays Intermetliate Aggregate Index 0 00 100 00 100 00 0.00 N/� 077 1.00 1.24
Historical Statistics - 5 Years
Tracking Up Down Information Sharpe Downside
Error Market Market Alpha Ratio Ratio Beta Risk
Capture Capture
Dana Fixed Portfolio 1.21 117.65 114.22 0.40 0.44 1.28 1.05 127
13arclays Intermediate Aggregate Index 0 00 100 00 100 00 0 00 N/A 1 78 9 00 1.08
TFIh:
Page 27 � BOGDAHN
GROUP
THt�:
Page 28 � BOGDAHN
�
� GROUP
Tequesta General Employees' Retirement Plan
Templeton Giobal Total Return R6 (FTTRX) Performance Review
As of Seatember 30. 2015
Peer Group Analysis - IM Global Fixed Income (MF)
s.ao zo.00
16 00
5.00
�
�
� O 12.00
2.00
8.00
0
� � �? =� '
-1.00 O � 4.00 � �
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-4.00 � � � 0.00
Q 'i�
� � -4.00 �
-7.00 •
� S -8.00 0
-10.00
-12.00
-13.00 -16.00
Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 Oct-2009
To To To To To To
QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010
• Templeton -6.79 (100) -8.14 (94) -8.14 (94) N/A N/A N/A N/A p Templeton -8.14 (94) N/A N/A N/A N/A N/A
O Global FI Index -1.38 (69) -3.75 (50) -3.75 (50) 0.36 (44) -0.29 (46) 3.15 (22) 3.02 (22) O Global FI Index -3.75 (50) 4.65 (38) -1.58 (52) 14.19 (3) 2.52 (39) 12.95 (11)
Median -0.35 -3.75 -3.75 -0.28 -0.53 1.24 1.26 Median -3.75 3.53 -1.52 7.19 1.61 7.82
Comparative Performance
1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr
Ending Ending Ending Ending Ending Ending
J u n-2015 Ma r-2015 D ec-2014 Sep-2014 J u n-2014 Ma r-2014
Templeton -0.13 (9) 0.31 (43) -1.62 (74) -0.74 (33) 2.67 (40) 0.47 (98)
Global Fixed Income Index -079 (15) -0 02 (53) -1.61 (Y4) -3.13 (80) 3.62 (11) 3.23 (16)
IM Global Fixed Income (MF) Median -1.91 O.OS -1.04 -1.64 2.39 2.42
T��H:
Page 29 �( BOGDAHN
♦�` GROUP.
Tequesta General Employees' Retirement Plan
Plan Growth
Since Inception Ending September 30, 2015
Schedule of Investable Assets
$4,680,000
$4,320,000
$3,960,000
$3,6�Q,�Q� $3,564,699
$3,240,000
$2,880,000
d
� $2,52�,��� $2,510,562
�
y . ..,�..G
Q)
L -
� $2,160,000 - �
.,
$1,800,000 . _ - ` _ " . :,
$1,440,000
$1,080,000
$720,000 -
$360,000
$0
6/07 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 9/15
— Total Fund Net Cash Flow
THr.
Pa so � BOGDAHN
GROUP
Tequesta General Employees' Pension Fund
Compliance Checklist
As of September 30, 2015
Total Fund Compliance: Yes No N/A
1. The Total Plan return equaled or exceeded the Net 7.5% actuarial earnings assumption over the trailing three year period. ✓
2. The Total Plan return equaled or exceeded the Net 7.5% actuarial earnings assumption over the trailing five year period. ✓
3. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three year period. ✓
4. The Total Plan return equaled or exceeded the total plan benchmark over the trailing five year period. ✓
5. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three year period. ✓
6. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing five year period. ✓
Equity Compliance: Yes No N/A
1. Total Equity return equaled or exceeded the benchmark over the trailing three year period. ✓
2. Total Equity return equaled or exceeded the benchmark over the trailing five year period. ✓
3. Total Equity investments do not exceed 70% of the market value of Plan assets. ✓
4. Total market value of foreign securities do not exceed 25% of the market value of Plan assets. ✓
Fixed Income Compliance: Yes No N/A
1. Total Fixed Income return equaled or exceeded the benchmark over the trailing three year period. ✓
2. Total Fixed Income return equaled or exceeded the benchmark over the trailing five year period. ✓
3. 95% of the fixed income investments have a minimum rating of investment grade or higher. ✓
Manager Compliance: Dana Domestic Europacific (RERGX) Dana Fixed Templeton (FTTRX)
Yes No N/A Yes No N!A Yes No N/A Yes No N/A
1. Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓
2. Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓
3. Manager has had less than 4 consecutive quarters of underperformance. ✓ ✓ ✓ ✓
4. Manager ranked within the top 40th percentile over the trailing three year period. ✓ ✓ ✓ ✓
5. Manager ranked within the top 40th percentile over the trailing five year period. ✓ ✓ ✓ ✓
6. Manager three year down market capture ratio is less than the index. ✓ ✓ ✓ ✓
7. Manager five year down market capture ratio is less than the index. ✓ ✓ ✓ ✓
I'tl t�:
Page31 /� B�G�AHN
� � . GROUP.
Tequesta General Employees' Retirement Plan
Benchmark History
As of September 30, 2015
Total Fund Policy Total Fixed Policy
Allocation Mandate Weight (%) Allocation Mandate Weight (%)
Jan-1978 Feb-2004
Citigroup 3 Month T-Bill Index 100.00 Barclays U.S. Gov't/Credit 100.00
Jan-2004 Oct-2005
S&P 500 Index 60.00 Barclays Intermediate U.S. Gov/Credit Index 100.00
Citigroup 3 Month T-Bill Index 20.00
Barclays U.S. Gov't/Credit 20.00 J�d-2012
Barclays Intermediate Aggregate Index 100.00
Oct-2005
S&P 500 Index 60.00 Sep-7.013
Barclays Intermediate U.S. Gov/Credit Index 40.00 Barclays Intermediate Aggregate Index 86.00
Global Fixed Income Index 14.00
Dec-2009
S&P 500 Index 50.00
Barclays Intermediate U.S. Gov/Credit Index 40.00
MSCI EAFE Index 10.00
Ju1-2012
S&P 500 Index 50.00
Barclays Intermediate Aggregate Index 40.00
MSCI AC World ex USA 10.00
Sep-2013 Global Fixed Income Index
S&P 500 Index 50.00 Allocation Mandate Weight (%)
Barclays Intermediate Aggregate Index 30.00 Jan-1994
MSCI AC World ex USA 15.00 JPM EMBI+ 33.33
Global Fixed Income Index 5.00 Barclays US Corp: High Yield 33.33
Citigroup Non-U.S. World Government Bond 33.34
'I'HH,
Page 32 � ��GiJ1yl 11V
�� , GROUP
Writeup
Disclosures
As of September 30, 2015
• Neither The Bogdahn Group, 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.
TH�:
Page 33 /� BOGDAHN
� GROUP
Report Statistics
Definitions and Descriptions
Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period.
Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's
non-systemic return, or its historical performance not explained by movements of the market.
Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk.
Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the
producYs performance.
Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance
Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative
quarterly set of returns. A higher factor is indicative of a riskier product.
Excess Return - Arithmetic difference between the manager's performance and the risk-free return over a specified time period.
Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return.
Information Ratio - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the
Information Ratio, the more the manager has added value to the portfolio.
R-Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has
historically moved in the same direction as the appropriate benchmark.
Return - Compounded rate of return for the period.
Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A
higher value demonstrates better historical risk-adjusted performance.
Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period.
Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark.
Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free
rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance.
Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance.
TtiF.
Page 34 �( BOGDAHN
♦ GROUP
Disclosures
The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the
investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations
and recommendations to the client.
The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from
custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a
reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation
for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated.
This performance report is based on data obtained by the clienYs custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data
providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various
asset positions.
The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future
performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management
services.
Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves.
This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live.
This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where
S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance
provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results.
This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or
redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire
risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any
express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all
warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.
Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect,
special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages.
This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related
thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment
Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof.
This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is
proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not
guarantee of future results.
'�'i �t:
Page 35 � BOGDAHN
°•, GROtJP
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BO�DAHN
�ROUP:
sii�rpli/1'i�t,�j 1'oru• iin�e.�tiuerrf rmd fidrrc•irmP derisiuits
Orlando
4��O1 Vineland Road, Suite 600
Orlando, Florida 32K l I
8C(>.240.7932
Chicago I Cleveland I Detroit Milwaukee I Pittsburgh ( Tulsa