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Documentation_Pension Public Safety_Tab 8.3a _05/04/2015
Village of Tequesta Public Safety Officers' Pension Fund Investment Performance Review 1 st Quarter 2015 Preliminary Report Preliminary Universe Data THE BOGDAHN GROUP W W W. B O G D A H N G RO U P. C O M simplifying your investment and fiduciary decisions 1st Quarter 2015 Market Environment THE j� BOGDAHN \ GROUP The Market Environment Major Market Index Performance As of March 31, 2015 Quarter Performance 3.6% 5.0% 2.3% - 1.0% 1.8% 4.0% 4.3% 1.s" 1.s 1.4% 2.3% 0.0% 20% • U.S. interest rates fluctuated considerably due to strength of the USD, U.S. economic data, geopolitical news, and the prospect of tighter 1 -Year Performance monetary policy, only to end slightly lower than where they began for MSCI ACWXUS • Investment returns during the first quarter of 2015 were positive across MSCI EAFE the board. Domestically, small and mid cap companies outperformed MSCI Emerg Mkts large cap companies for the second consecutive quarter. This outperformance is due largely to a strengthening U.S. dollar (USD), S&P 500 with large cap companies in the S&P 500 Index generally having more Russell 3000 international currency exposure versus the more domestically focused Russell 1000 small cap companies in the Russell 2000 Index. Russell MidCap Index. Despite the strong quarter, developed international stocks Russell 2000 • Despite the strong USD, which provided a headwind to international returns in the U.S., international stocks had a strong start versus Barclays US Agg domestic indices. Through the first quarter, both developed Barclays US Govt international and emerging markets outperformed large cap U.S. Barclays USTI PS indices with only mid to small domestic companies keeping pace. The Barclays MBS outperformance was primarily driven by the European Central Bank's Barclays Corp IG January decision to begin a quantitative easing program to combat slowing growth prospects throughout the region. 3-MonthT-Bill The Market Environment Major Market Index Performance As of March 31, 2015 Quarter Performance 3.6% 5.0% 2.3% - 1.0% 1.8% 4.0% 4.3% 1.s" 1.s 1.4% 2.3% 0.0% 20% • U.S. interest rates fluctuated considerably due to strength of the USD, U.S. economic data, geopolitical news, and the prospect of tighter 1 -Year Performance monetary policy, only to end slightly lower than where they began for MSCI ACWXUS the quarter. This decline in rates was a tailwind for bond returns. MSCI EAFE Investment grade corporate bonds outperformed U.S. government MSCI Emerg Mkts bonds and mortgage-backed securities (MBS) due to their longer duration and as a result of tightening spreads. S&P 500 Russell 3000 • Trailing one-year returns painted a different picture, with U.S. large Russell 1000 company stocks outperforming all indices except the Russell Mid Cap Russell MidCap Index. Despite the strong quarter, developed international stocks Russell 2000 posted negative returns with emerging market stocks finishing the year narrowly positive. Bond returns over the last 12 months were strong, Barclays US Agg primarily driven by falling interest rates across the majority of the yield Barclays US Govt curve. Barclays US TIPS Barclays MBS Barclays Corp IG -0.6% -0.5 3 -Month T -Bill -2.0% 0.8% 0.0% 4.0% 6.0% 12.7% 12.4% 12.7% 13.7% 8.2% 15.7% 5.2% 5.5 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Slnt�tMeW� (BOGDAHN 2 ` GROUP • Domestic stocks performed well through the first quarter of the year with only large cap value stocks finishing March with negative returns. Mixed economic data created volatility as growing optimism due to favorable corporate earnings reports, strong employment data, and oil price stabilization were offset by fears that the Federal Reserve could speed up its timetable for raising short-term interest rates. However, modest GDP, weak durable goods, and weak retail sales reports released during March alleviated fears of tighter monetary policy in the near term, pushing the indices higher to end the quarter. • There were two notable trends in U.S. domestic equities in the first quarter of the 2015. First, mid to small cap companies outperformed large cap stocks through the end of the period. A considerable portion of this outperformance is attributed to the strengthening of the U.S. dollar as investors favored small cap stocks with less exposure to foreign currencies than large multinationals. Secondly, growth stocks outperformed value stocks throughout the large cap spectrum with large cap value stocks finishing the quarter in negative territory. • On average, over the trailing one-year period, returns were strongest in the mid cap space with all styles posting double digit returns. Small caps trailed both mid and large cap names. Similar to the quarterly results, growth outperformed value throughout the small cap spectrum. • Based on their 20 -year average P/E ratios, current valuations for both the value and core indices suggest they were modestly overvalued, with growth indices outside of the Russell 1000 Growth Index being close to fair value . Mid cap stocks appeared more overvalued than small caps with large stocks being slightly undervalued. Large cap growth stocks were the most undervalued with a current P/E ratio that was 91.7% of its long-term average. In contrast, the Russell Mid Cap Value Index, the most overvalued index, had a current P/E ratio that was 124.4% of its long-term average. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth -2.0% 0.0% 2.0% 4.0% 1 -Year Performance - Russell Style Series The Market Environment Domestic Equity Style Index Performance As of March 31, 2015 Quarter Performance - Russell Style Series 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth 0.0% 6.0% 8.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Slnt�tMeW� ��THE 3 BOGDAHN GROUP The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2015 Russell 1000 ec or va ua Ions were alr y mlxe . n a ral Ing as s, e Russell 1000 was relatively cheap compared to the Russell 2000. 15.0% 5.0 % 5.0% Based on trailing P/E, four sectors in the S&P 500 had valuations lower Russell 2000 than their 20 year average, one sector is fairly valued, and five sectors Consumer Disc (13.1%) Within large caps, sector performance was somewhat lackluster as only five of ten economic sectors returned +/- 2% for the quarter. Consumer Staples (8.9%) Consumer Discretionary and Health Care posted the strongest results with Utilities and Energy detracting the most. On a one-year basis, six Energy (7.6%) of ten sectors posted returns in the double digits with Energy being the Financials (17.1%) only sector with a negative return due to a sharp drop in oil prices Health Care (15.6%) which began in the third quarter. Health Care (14.5%) Small cap performance for the quarter was led by Health Care, Industrials (11.1%) Consumer Discretionary, and Information Technology. Only Energy and Telecom Services posted negative returns for the quarter, both Info Technology (19.1%) returning -0.6% Over the trailing one-year period, five of ten sectors Materials (3.5%) returned +10% with only three sectors posting a negative absolute Telecom Services (0.7%) return. Energy was the largest outlier, returning a disproportionate - Telecom Services (2.1%) 39.2% over the last 12 months. Utilities (3.0%) ec or va ua Ions were alr y mlxe . n a ral Ing as s, e Russell 1000 was relatively cheap compared to the Russell 2000. 15.0% 5.0 % 5.0% Based on trailing P/E, four sectors in the S&P 500 had valuations lower Russell 2000 than their 20 year average, one sector is fairly valued, and five sectors Consumer Disc (14.0%) had valuations above their 20 year average. Information Technology and Energy appear to be the most undervalued and Telecom Services Consumer Staples (3.2%) and Utilities were the most overvalued based on their long-term average P/E ratios. Energy (3.4%) • By far the most drastic underperformance of all sectors over the past Financials (23.6%) year occurred in Energy. Falling from a June high near $115/barrel, oil Health Care (15.6%) prices (Brent Crude Spot Price) plummeted since the beginning of the third quarter of 2014, but prices appear to have stabilized, closing the Industrials (13.6%) quarter near $54/barrel. The cause of this drastic price change centered on the expanding world oil supply with lower forecasts of oil Info Technology (17.9%) consumption growth due to a weaker outlook for the global economy. Materials (4.4%) Telecom Services (0.7%) Utilities (3.5%) ■Quarter ❑1 -Year 17.3% 16.9% ] 10.7% 4% 27.6% 8.5% 17.7% ] 10.2% 15.0% 25.0% ■Quarter ❑1 -Year 5.2b/o 11.2% 10.5% 9.5% 12.7% 2 .7% ■T 2.5 J 1.5% 12.7% 161% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Source: Morningstar DirectTHE 4 `(� BOGDAHN ` GROUP Russell rrr Apple Inc Top r Weighted Weight 3.55% Stocks 1 e, Return 13.2% Retu rn 65.4% Sector Information Technology Exxon Mobil Corporation 1.73% -7.4% -10.5% Energy Microsoft Corp 1.59% -11.9% 1.8% Information Technology Johnson & Johnson 1.35% -3.1% 5.2% Health Care Berkshire Hathaway Inc Class B 1.25% 3.9% 15.5% Financials Wells Fargo & Co 1.23% -0.1% 12.4% Financials General Electric Co 1.18% -0.9% -0.8% Industrials JPMorgan Chase &Co 1.08% -2.6% 2.4% Financials Pfizer Inc .05% 12.7% 12.2% Health Care Procter & Gamble Co 1.05% -9.4% 4.8% Consumer Staples Top Russell rrr Pharmacyclics Inc r Weight 0.07% 1 -Qtr Return 109.3% Quarter) 1 -Year Return 155.4% Sector Health Care Intercept Pharmaceuticals Inc 0.02% 80.8% -14.5% Health Care Freescale Semiconductor Ltd 0.02% 61.6% 67.0% Information Technology Salix Pharmaceuticals Ltd 0.05% 50.3% 66.8% Health Care Hospira Inc 0.07% 43.4% 103.1% Health Care Orbital ATK Inc 0.02% 41.8% 16.9% Industrials Exelis Inc 0.02% 39.6% 40.5% Industrials Twitter Inc 0.12% 39.6% 7.3% Information Technology Kraft Foods Group Inc 0.25% 39.0% 61.1% Consumer Staples Nu Skin Enterprises Inc Class 0.02% 38.6% -25.3% Consumer Staples Bottom Russell rrr Weight Watchers International Inc r Weight 0.00% 1 -Qtr Return -71.9% Quarter) 1 -Year Return -66.0% Sector Consumer Discretionary Ocwen Financial Corp 0.00% -45.4% -78.9% Financials Apollo Education Group Inc Class A 0.01% -44.5% -44.7% Consumer Discretionary zulily Inc Class A 0.00% -44.5% -74.1% Consumer Discretionary Tidewater Inc 0.00% -40.4% -59.6% Energy Stratasys Ltd 0.01% -36.5% 50.2% Information Technology Peabody Energy Corp 0.01% -36.4% -69.3% 1 Energy SanDisk Corp 0.06% -34.8% -20.6% Information Technology Rayonier Advanced Materials Inc 0.00% -32.9% N/A Materials Cliffs Natural Resources Inc 0.00% -32.6% -75.7% Materials Source: Momingstar Direct The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2015 Russell rrr Qorvo Inc Top 10 Weighted Weight 0.63% Stocks 1 -Qtr Return N/A 1 -Year turn N/A Sector Information Technology ISIS Pharmaceuticals Inc 0.41% 3.1% 47.4% Health Care Puma Biotechnology Inc 0.30% 24.7% 126.7% Health Care Office Depot Inc 0.27% 7.3% 122.8% Consumer Discretionary Ultimate Software Group Inc 0.27% 15.8% 24.1% Information Technology JetBlue Airways Corp 026% 21.4% 121.5% Industrials Brunswick Corp 0.26% 10.6% 114.8% iConsumer Discretionary Graphic Packaging Holding Co 026% 7.1% 43.6% Materials DexCom Inc 0.26% 1 13.2% 1 50.7% Health Care Maximus Inc 0.25% 1 21.8% 1 49.4% Information Technology Top Russell rrr Gordman's Stores Inc r Weight 0.00% 1 -Qtr Return 204.0% Quarter) 1 -Year Return 52.0% Sector Consumer Discretionary Cellular Dynamics International Inc 0.01% 155.5% 10.0% Health Care Cyton Therapeutics Inc 0.01% 141.5% 56.3% Health Care NII Holdings Inc 0.00% 135.1% -96.3% Telecommunication Services Esperion Therapeutics Inc 0.03% 129.0% 512.4% Health Care Egalet Corp 0.00% 127.2% -7.6% Health Care Ampio Pharmaceuticals Inc 0.02% 119.5% 18.6% Health Care Foundation Medicine Inc 0.04% 116.5% 48.6% Health Care Fairway Group Holdings Corp Class A 0.01% 114.9% -11.4% Consumer Staples ZIOPHARM Oncology Inc 0.05% 112.4% 135.2% Health Care Pr Bottom Russell rrr Corporate Resource Services Inc 10 Perfonning Weight 0.00% Stocks (by I -Qtr Return -98.3% Quarter) 1 -Year Return -99.4% Sector Industrials Doral Financial Corp 0.00% -98.0% -99.1% Financials BPZ Resources Inc 0.00% -90.9% -99.2% Energy Wet Seal Inc Class A 0.00% -89.7% -99.5% Consumer Discretionary Body Central Corp 0.00% -88.7% -98.9% Consumer Discretionary Quicksilver Resources Inc 0.00% -87.6% -99.1% Energy Allied Nevada Gold Corp 1 0.00% -87.4% -97.4% 1 Materials FXCM Inc 1 0.01% -87.1% -85.4% Financials Speed Commerce Inc 0.00% -79.3% -82.5% Information Technology Corinthian Colleges Inc 0.00% -77.7% -99.0% Consumer Discretionary THE BOGDAHN GROUP • The year began with a modest sell-off in non -U.S. equities and an unexpected, and unusual, currency event as the Swiss National Bank announced the dissolution of the country's three-year peg to the euro mid-January. Later that month, the European Central Bank made the decision to begin a quantitative easing program to combat slowing growth prospects throughout the region. Developed non - U.S. equities began to surge, leading to the strongest month for the MSCI EAFE Index in over a year. • On a regional basis, stocks in Latin America turned in the worst quarterly performance in both local currency and USD terms for the second consecutive quarter. • There were fewer negative returns within developed markets this quarter compared to the recent past, but within emerging markets, negative returns were more common and generally more severe. Denmark (+16.7%) was the top -performing developed country, while Singapore (-1.9%), New Zealand (-1.5%), and the UK (-1.0%) had the worst performance. Interestingly, Russia (+18.6%) was the best performing emerging market, while Greece (-29.3%) was, by far, the worst performer as the country faced possible bankruptcy. • During the first quarter, USD appreciation once again created a significant drag on returns for U.S. investors in most overseas markets. The Brazilian real depreciated significantly versus the USD during the quarter, leading to a large difference in returns between local and USD returns in Latin American equities. • Only two sectors ended the quarter in negative territory for developed non -U.S. stocks -Energy (-4.7%) and Utilities (-4.8%). On the opposite end of the spectrum, Health Care (+9.9%) and Consumer Discretionary (+8.4%) led MSCI EAFE performance. For the MSCI EM Index, Health Care (+6.7%) and Consumer Discretionary (+4.1 %) stocks performed strongly but were bested by Information Technology (+8.5%) stocks. Materials (-3.1%) and Utilities (-2.1 %) stocks detracted the most. • Similar to U.S. indices, growth outperformed value across the board, while, in general, small caps outperformed large caps. The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2015 AC World x US (45) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (23) EM EM EA (10) EM Asia (8) EM Latin Amer (5) Quarter Performance I ■USD ❑LocalCurrency 3.6% 91% 4.0% 10.2% 5.0% 11.0% 3.6% 11.7% 7.7% 9.5% 2.3 4.9% 2.0 5.7% 5.3% 5.7% 9.5% 1.3 % -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 1 -Year Performance I■USD ❑Local Currency AC World x US (45) -0.6% 16.0 WORLD x US (22) r0.9% 173% EAFE (21) -0.5 1 B.3% Europe & ME (16) -4.3 15.5% Pacific (5) 7.7% 242% Emerging Mkt (23) 0.8/0 11.3 EM EM EA (10) -1.6%01 8% EM Asia (8) 11.1 14.6% EM Latin Amer (5) -20.7/0 ��2.4%1 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source: MSCI Global Index Mondor (Returns are Gross) 0*411 THE. 6 (� BOGDAHN ` GROUP NISCI-EAFE Sector Weight Return 1 Return Consumer Discretionary 13.1% Quarter 8.4% -Year 6.0% Consumer Staples 11.0% 4.7% 2.0% Energy 5.1% -4.7% -23.4% Financials 26.0% 4.9% -0.5% Health Care 11.4% 9.9% 10.5% Industrials 12.7% 6.2% -2.1% Information Technology 4.9% 7.2% 7.2% Materials 7.5% 3.4% -8.0% Telecommunication Services 4.7% 2.5% 0.6% Utilities Total 3.6% 100.0% -4.8% 5.0% -7.3% 0 MSCI SectorWeight Return 1 Return -ACWlxIJS Consumer Discretionary 11.8% Quarter 7.2% -Year 5.3% Consumer Staples 9.9% 3.9% 1.9% Energy 6.9% -4.0% -22.7% Financials 27.3% 2.3% 0.5% Health Care 9.1% 10.6% 12.4% Industrials 11.1% 4.8% -1.5% Information Technology 7.8% 7.7% 11.4% Materials 7.6% 1.6% 3.3% Telecommunication Services 5.1% 1.7% 1.9% Utilities Tote 1 3.4% 100.0% -4.5% 0.4% MSCI - Emerging Mkt Consumer Discretionary Sector Weight 9.4% Quarter Return 4.1% -0,6% 1 -Year Return -1.1% Consumer Staples 8.1% 2.0% -1.4% Energy 8.0% 2.3% -21.2% Financials 28.5% -0.2% 5.7% Health Care 2.4% 6.7% 25.6% Industrials 6.8% 1.3% -1.3% Information Technology 19.1% 8.5% 15.0% Materials 7.0% -2.1% -18.0% Telecommunication Services 7.4% 1.5% 6.3% Utilities 3.3% -3.1% -3-1% Tote 1 100.0% 2.3% 0 Source: MSCI Global Index Mondor (Returns are Gross in USD) The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2015 Country Weight Weight P. Return IV Return Japan 22.2% 115.9% 10.3% 12.4% United Kingdom 19.8% 14.2% -1.0% -5.5% France 9.7% 7.0% 4.8% -7.4% Germany 9.5% 6.8% 8.4% -2.0% Switzerland 9.3% 6.6% 5.1% 0.7% Australia 7.3% 5.2% 3.1% -5.8% Spain 3.6% 2.6% -0.6% -9.2% Hong Kong 3.1% 2.3% 6.0% 15.3% Sweden 3.1% 2.2% 5.6% -4.2% Netherlands 2.7% 2.0% 4.90/, 0.5% Italy 2.3% 1.7% 6.8% -15.2% Denmark 1.7% 1.2% 16.7% 6.9% Singapore 1.5% 1.0% -1.9% 2.0% Belgium 1.3% 0.9% 6.0% 8.5% Finland 0.9% 0.6% 2.8% 3.3% Norway 0.6% 0.5% 2.4% -21.1% Israel 0.6% 0.4% 9.1% 1 13.7% Ireland 0.3% 0.2% 3.8% -6.7% Austria 0.2% 0.1% 3.2% -25.1% Portugal 02% 0.1% 7.3% -39.1% New Zealand Total EAFE Countries 0.2% 00 0.1% -1.5% -8.61/. Canada Total Developed Countries 6.8% 78.5% -5.9% 4.0% 0 China 5.0% 8.1% Korea 3.2% 4.4% -4.9% Taiwan 2.8% 4.0% 13.2% South Africa 1.7% 3.3% 4.2% India 1.6% 5.4% 20.7% Brazil 1.6% -14.6% -28.4% Mexico 1.0% -1.9% -6.3% Russia 0.8% 18.6% -24.9% Malaysia 0.8% -1.6% -11.7% Indonesia 0.6% 2.5% 7.5% Thailand 0.5% 2.5% 11.4% Turkey 0.3% -15.8% -4.3% Poland 0.3% -3.0% -19.0% Philippines 0.3% 10.2% 26.2% Chile 0.3% 0.1% -10.1% Qatar 02% -3.3% -1.9% Colombia 0.1% -19.1% -38.3% United Arab Emirates 0.1% -5.3% -13.8% Peru 0.1% -6.0% -0.5% Greece 0.1% -29.3% -64.1% Egypt 0.1% 1.5% 20.2% Czech Republic 0.0% -3.1% -12.1% Hungary Total Emerging Countries Total ACWlxIJS Countries 0.0% 21.5% 100.0% 14.0% 2.3% -9.4% 0: -0.6% THE �BOGDAHN _` GROUP • Domestic bond markets were positive during the first quarter of 2015 as broad U.S. fixed income indices moved in tandem with U.S. Treasuries throughout the period. The Barclays Aggregate Index returned +1.6% with U.S. corporate bonds driving performance relative to U.S. Treasury and mortgage backed securities. • Investors were rewarded for taking on more credit risk with A and Baa credits directing investment grade performance for the quarter. High yield credit outperformed investment grade with Ba and B credits outperforming Caa issues. Furthermore, since rate hikes are generally associated with an improving economic environment and should the Fed begin to raise rates, it is plausible spreads could tighten further as company fundamentals strengthen. • Due to the decline in interest rates along the yield curve, longer dated issues outperformed short maturity issues. For example, the quarterly return on the 30 -Year Treasury was +5.1% versus a +2.6% return on the 10 -Year Treasury. • The domestic bond market dramatically outpaced the international bond market, represented by the Barclays Global Aggregate ex U.S. Index, by +6.2%. The performance differential was heavily influenced by the USD strengthening +6.6%, with returns in local currency far more attractive at +2.0%. The European Central Bank's announcement of a quantitative easing program fueled an ongoing rally in European core and peripheral country bonds. In fact, outside of the U.S., few central banks worldwide have considered tightening monetary policies. The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of March 31, 2015 Quarter Performance AAA (4.7) AA (5.8) A (7.3) Baa (7.8) U.S. High Yield (4.2) U.S. Treasury (5.7) U.S. Mortgage (3.5) U.S. Corporate IG (7.4) U.S. TIPS (6.0) Aggregate (5.4) Intermediate Agg (3.8) Global Agg x US (7.5) Multiverse (6.4) -6.0% -4.0% -2.0% 1 -Year Performance AAA (4.7) AA (5.8) A (7.3) Baa (7.8) U.S. High Yield (4.2) U.S. Treasury (5.7) U.S. Mortgage (3.5) U.S. Corporate IG (7.4) U.S. TIPS (6.0) Aggregate (5.4) Intermediate Agg (3.8) Global Agg x US (7.5) Multiverse (6.4) ' 1.4% 2.2% 2.3% 2.5% 1.6% 1.1 2.3% 1 1.4% 1.6% 1.3% 0.0% 2.0% 4.0% 5.3% 5.9% 7.0% 6.9% 2.0% 5.4% 5.5% 6.8% 3.1% -12.0%-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% S-e�IaysCapkal Lim (BOGDAHN a `` GROUP • The yield curve in the U.S. continued to flatten during the first quarter. Since prices and performance move in the opposite direction of yields, the long -end of the curve was the best performing maturity segment as 30 -year Treasuries returned +5.1 % during the period. The yield on the 10 -year Treasury fell from 2.17% to 1.94% ending the quarter below 2.0%. At the short end of the curve, 2 -year Treasuries fell from 0.67% to 0.56%. • Since rising to more attractive yields in mid-to-late 2013, the yield curve has gradually flattened and interest rates have declined, particularly in longer -dated maturities. This resulted in positive returns over the past twelve months, especially in investment grade or better, intermediate term or longer securities. The expectation is that given strong economic growth, lower unemployment, the end of the Fed's QE program, and better housing numbers, interest rates will soon rise. However, the impact of foreign purchases and generally benign inflation has been a natural headwind to rising rates. • Interest rates fluctuated considerably in the U.S. during the first quarter of 2015. Improving economic data initially caused rates to rise as investors speculated the Federal Reserve could begin tightening monetary policy as early as June. However, based on Janet Yellen's comments in late March, and mixed economic reports near quarter -end, investor fears of imminent Fed policy tightening in June were abated causing rates to fall. Despite the volatility, rates ended the quarter lower with broad U.S. credit indices posting solid gains. • The European Central Bank announced a quantitative easing plan in response to below -target inflation figures. The 60 billion euro per month bond buying program was larger than investors expected and was designed to revitalize the Eurozone economy and fight deflationary pressures. 1 -Year Trailing Market Rates 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2015 -,d Fed Funds Rate —TED Spread —3 -Month Libor _BAA OAS —10vr Treasury —10vr TIPS 0.00 ; Mar -14 Apr -14 May -14 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14 Jan -15 Feb -15 Mar -15 Treasury Yield Curve 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 X6/30/2014 X9/30/2014 —K�12/31/2014 �>-.3/31/2015 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) C4N TRE 9 BOGDAHN � GROUP, THE j� BOGDAHN \ GROUP ■ In an effort to better serve your needs, The Bogdahn Group is conducting its annual client survey. We sincerely thank you for taking the time to fill out this survey. The insights gained will help The Bogdahn Group continue to improve and better serve you. Additionally, we use the information to evaluate our consultants and identify areas of professional improvement. This survey is short and should take approximately five minutes to complete. The Bogdahn Group will keep all information provided completely confidential and will never release information to third parties. This survey is for internal use only. ■ If you do not receive an individual e-mail from the survey company, please participate by directing your browser to https://www.surveymonkey.com/s/TBGSurvey20l4. ■ If you have any questions about the survey, please contact Tala Chin at (863) 877-0323 or clientsurvey(a-)bogdahngroup.com. ■ Thank you again for your help. We look forward to reviewing your feedback. The Market Environment The 2014 Bogdahn Client Survey Please rate The Bogdahn Group on the following based on a scale of 1 — 10 (1 very poor and 10 Excellent): Your consulting team's level of understanding of your Plan/Fund's unique needs and objectives. © Your satisfaction with the accuracy, level of detail, and timeliness of your performance report. © Your consulting team's ability to effectively communicate the information in the performance report. Your consulting team's ability to effectively communicate investment insights beyond those in the performance report. © Effort of your consulting team to offer proactive suggestions and/or innovative solutions to enhance your portfolio goals and objectives. The outcomes/satisfaction of your consultant's suggestions and/or investment solutions. The timeliness and effectiveness of your consulting team's responses to regular inquiries. (Our firm policy is to reply to all inquiries within 24 hours.) Your satisfaction with your fee structure relative to the value delivered. Your overall satisfaction with The Bogdahn Group's services, professional staff, and resources. MPlease select your preferred methods(s) to receive performance and research reports: Emailed (PDF) in advance of the meeting Hard copies mailed in advance of the meeting Hard copies delivered at meeting Electronic "Portal" access through Bogdahn Alternative electronic format (CDs, Flash Drive, Tablet) Other THE The Bogdahn Group Client Survey link will be live through June 15, 2015. 11 BOGDAHN GROUP Asset Allocation By Segment as of December 31, 2014 : $11,373,610 Tequesta Public Safety Officers' Pension Fund Asset Allocation by Asset Class and Manager Asset Allocation By Segment as of March 31, 2015 : $11,825,214 Allocation Allocation Segments Market Value Allocation Segments Market Value Allocation ■ Domestic Equity 6,181,171 54.3 ■ Domestic Equity 5,803,988 49.1 International Equity 1,203,979 10.6 .1 International Equity 1,771,106 15.0 ■ Domestic Fixed Income 68,365 0.6 ■ Domestic Fixed Income 3,231,290 27.3 Global Fixed Income 533,876 4.7 ■ Global Fixed Income 585,966 5.0 ■ Cash Equivalent 3,386,219 29.8 ■ Cash Equivalent 432,864 3.7 THE 12 Q BOGDAHN `` GROUP Asset Allocation By Manager as of December 31, 2014 : $11,373,610 Tequesta Public Safety Officers' Pension Fund Asset Allocation by Asset Class and Manager Asset Allocation By Manager as of March 31, 2015 : $11,825,214 Allocation Market Value Allocation Allocation Market Value Allocation ■ Gabelli/GAMCO Value 3,315,300 29.1 Garcia Hamilton 3,445,066 29.1 Receipt&Disbursement 3,232,188 28.4 ■ Brown Advisory (BAFGX) 2,925,110 24.7 • Brown Advisory (BAFGX) 3,019,603 26.5 ■ Gabelli/GAMCO Value 2,915,458 24.7 Europacific Growth (RERGX) 1,203,979 10.6 Europacific Growth (RERGX) 1,771,106 15.0 ■ Templeton Global Total Return (FTTRX) 533,876 4.7 ■ Templeton Global Total Return (FTTRX) 585,966 5.0 ■ PIMCO Total Return Instl (PTTRX) 68,365 0.6 Receipt & Disbursement 182,206 1.5 Checking Account 300 0.0 Checking Account 302 0.0 Garcia Hamilton - 0.0 ■ PIMCO Total Return Instl (PTTRX) - 0.0 THt BOGDAHN 13 GROUP Asset Allocation vs. Target Allocation Domestic Equity -0 6 i International Equity 0.01 Global Fixed Income 0.0 Domestic Fixed Income -0s 1 Cash •- s i a -10.0 % -9.0 % -6.0% -3.0% 0.0 0 Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation (%) Tequesta Public Safety Officers' Pension Fund Asset Allocation vs Target Allocation As of March 31, 2015 r 3.0% 6.0% 9.0% 10.0% Target I%) Domestic Equity 5,840,568 49.4 50.0 International Equity 1,771,106 15.0 15.0 Global Fixed Income 585,966 5.0 5.0 Domestic Fixed Income 3,445,066 29.1 30.0 Cash 182,508 1.5 0.0 Total Fund 11,825,214 100.0 100.0 THE 14 Q BOGDAHN \-� GROUP Tequesta Public Safety Officers' Pension Fund Asset Allocation History As of March 31, 2015 Asset Allocation History by Portfolio Mar -2015 Dec -2014 Sep -2014 Jun -2014 Mar -2014 Total Equity 7,611,674 64.37 7,538,881 66.28 6,950,067 64.40 7,074,496 65.38 6,732,266 64.84 Domestic Equity 5,840,568 49.39 6,334,903 55.70 5,779,043 53.55 5,852,014 54.09 5,557,661 53.53 Brown Advisory (BAFGX) 2,925,110 24.74 3,019,603 26.55 2,791,881 25.87 2,797,740 25.86 2,728,248 26.28 Gabelli/GAMCO Value 2,915,458 24.65 3,315,300 29.15 2,987,162 27.68 3,054,274 28.23 2,829,413 27.25 International Equity 1,771,106 14.98 1,203,979 10.59 1,171,024 10.85 1,222,482 11.30 1,174,605 11.31 Europacific Growth (RERGX) 1,771,106 14.98 1,203,979 10.59 1,171,024 10.85 1,222,482 11.30 1,174,605 11.31 Total Fixed Income 4,031,032 34.09 602,241 5.30 3,614,981 33.50 3,630,157 33.55 3,514,392 33.85 Garcia Hamilton 3,445,066 29.13 - 0.00 - 0.00 - 0.00 - 0.00 PIMCO Total Return Instl (PTTRX) - 0.00 68,365 0.60 3,089,642 28.63 3,100,871 28.66 3,003,188 28.92 Templeton Global Total Return (FT -TRX) 585,966 4.96 533,876 4.69 525,339 4.87 529,286 4.89 511,204 4.92 Cash Accounts 182,508 1.54 3,232,488 28.42 226,959 2.10 115,171 1.06 136,225 1.31 Receipt & Disbursement 182.206 1.54 3,232,188 28.42 223.315 2.07 114,873 1.06 135,926 1.31 Checking Account 302 0.00 300 0.00 3.644 0.03 299 0.00 298 0.00 Total Fund 11,825,214 100.00 11,373,610 100.00 10,792,008 100.00 10,819,825 100.00 10,382,883 100.00 Asset Allocation History by Asset Class 100.0 80.0 60.0 C 0 ° 40.0 a 20.0 0.0 7/07 1/08 0 Domestic Equity 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 International Equity Domestic Fixed Income E Global Fixed Income 15 7/12 1/13 7/13 1/14 7/14 3/15 0 Cash Equivalent \ THE /r BOGDAHN GROUP Financial Reconciliation Total Equity Domestic Equity Brown Advisory (BAFGX) Gabelli/GAMCO Value International Equity Europacific Growth (RERGX) Total Fixed Income Garcia Hamilton PIMCO Total Return Instl (PTTRX) Templeton Global Total Return (FTTRX) Cash Accounts Receipt & Disbursement Checking Account Total Fund Financial Reconciliation Total Fund 1 Quarter Ending March 31, 2015 Market Value Net Contributions Distributions Management Other Income Apprec./ Market Value 01/01/2015 Transfers Fees Expenses Deprec. 03/31/2015 7,538,881 -202,788 -6,212 -411 9,413 272,791 7,611,674 6,334,903 -695,788 -6,212 -411 9,413 198,663 5,840,568 3,019,603 -216,000 - - - 121,507 2,925,110 3,315,300 -479,788 -6,212 -411 9,413 77,156 2,915,458 1,203,979 493,000 - - - 74,128 1,771,106 1,203,979 493,000 - 74,128 1,771,106 602,241 3,371,811 33,025 23,955 4,031,032 - 3,389,868 26,350 28,849 3,445,066 68,365 -69,057 129 563 - 533,876 51,000 - - - 6,547 -5,457 585,966 3,232,488 3,169,023 155,991 -20,336 -16,616 4 - 182,508 3,232,188 -3,184,647 155,991 -20,336 -992 3 182,206 300 15,624 - - - -15,624 1 - 302 11,373,610 - 155,991 -20,336 -6,212 -17,027 42,443 296,746 11,825,214 THE: 16 BOGDAHN GROUP, Financial Reconciliation Total Equity Domestic Equity Brown Advisory (BAFGX) Gabelli/GAMCO Value International Equity Europacific Growth (RERGX) Total Fixed Income Garcia Hamilton PIMCO Total Return Instl (PTTRX) Templeton Global Total Return (FTTRX) Cash Accounts Receipt & Disbursement Checking Account Total Fund Financial Reconciliation Total Fund October 1, 2014 To March 31, 2015 Market Value Net Contributions Distributions Management Other Income Apprec./ Market Value 10/01/2014 Transfers Fees Expenses Deprec. 03/31/2015 6,950,067 27,702 -11,806 -750 130,329 516,131 7,611,674 5,779,043 -517,197 -11,806 -750 109,620 481,657 5,840,568 2,791,881 -129,501 - - 91,466 171,264 2,925,110 2,987,162 -387,695 -11,806 -750 18,154 310,393 2,915,458 1,171,024 544,899 - - 20,709 34,474 1,771,106 1,171,024 544,899 20,709 34,474 1,771,106 3,614,981 330,042 162,851 -76,842 4,031,032 - 3,389,868 26,350 28,849 3,445,066 3,089,642 -3,128,126 104,014 -65,531 - 525,339 68,300 - - - 32,487 -40,160 585,966 226,959 357,744 391,250 -43,876 -34,088 6 - 182,508 223,315 -387,238 391,250 -43,276 -1,850 5 182,206 3,644 29,494 - -600 - -32,238 2 - 302 10,792,008 - 391,250 -43,876 -11,806 -34,837 293,186 439,289 11,825,214 Tiit 17 $OGDAHN GROUP, Tequesta Public Safety Officers' Pension Fund Comparative Performance: Trailing Returns As of March 31, 2015 Comparative Performance QTR FYTD 1 YR 3 YR 5 YR 7 YR Inception Inception Date Total Fund (Gross) 2.96 (22) 6.68 (5) 9.08 (23) 9.68 (66) 9.40 (58) 6.85 (54) 6.96 (52) 05/01/2005 Total Fund Policy 1.99 (84) 4.51 (72) 7.76 (55) 10.13 (55) 9.67 (48) 6.85 (53) 6.69 (70) (90) All Public Plans -Total Fund Median 2.54 4.33 5.33 Total Domestic Fixed Income Policy 8.06 (54) 10.21 (22) 9.65 (27) 6.91 (75) 7.00 (85) 4.15 Total Fund (Net) 2.91 (74) 6.57 1.63 8.85 2.85 9.35 5.03 9.05 3.74 6.48 4.94 6.54 5.28 05/01/2005 Total Equity 3.75 Global Fixed Income 9.07 (43) 11.69 (50) 14.60 (42) 13.30 8.10 7.43 04/01/2005 Total Equity Policy 2.22 -0.02 5.40 -1.63 9.31 -1.25 14.45 2.67 12.91 5.22 7.89 5.85 7.27 1.95 (47) Domestic Equity 3.28 (26) 9.98 (11) 13.50 (17) 15.53 (57) 14.27 (37) 8.76 (47) 7.89 (48) 04/01/2005 Total Domestic Equity Policy 1.80 (58) 7.13 (45) 12.37 (28) 16.43 (37) 14.69 (25) 9.10 (39) 8.11 (41) IM U.S. All Cap Core Equity (SA+CF+MF) Median 2.16 6.88 11.00 15.90 13.59 8.54 7.83 International Equity 6.05 (11) 4.43 (12) 2.98 (17) 10.03 (16) N/A N/A 7.76 (8) 05/01/2010 Total International Equity Policy 3.59 (81) -0.36 (76) -0.57 (31) 7.25 (72) N/A N/A 5.78 (70) IM International Large Cap Core Equity (MF) Median 5.06 0.78 -1.34 8.26 5.58 1.07 6.19 Total Fixed Income 1.58 2.36 4.40 2.11 3.58 3.77 4.28 04/01/2005 Total Fixed Income Policy 1.38 2.95 31 Domestic Fixed Income 1.83 (30) 3.03 (44) 5.09 (48) 2.29 (93) 3.68 (90) 3.85 (90) 4.33 (81) 04/01/2005 Total Domestic Fixed Income Policy 1.61 (54) 3.43 (22) 5.72 (27) 3.09 (75) 4.04 (85) 4.15 (86) 4.60 (74) IM U.S. Broad Market Fixed Income (SA+CF+MF) Median 1.63 2.85 5.03 3.74 4.94 5.28 5.20 Global Fixed Income 0.30 (43) -1.31 (50) 0.57 (42) N/A N/A N/A 2.88 (38) 10/01/2013 Global Fixed Income Index -0.02 (52) -1.63 (57) -1.25 (54) 2.67 (39) 5.22 (19) 5.85 (13) 1.95 (47) IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 3.34 1.40 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior to June 2010 do not include cash. BOGDAHN 1a GROUP Tequesta Public Safety Officers' Pension Fund Comparative Performance: Trailing Returns As of March 31, 2015 QTR FYTD 1 YR 3 YR 5 YR 7 YR Inception Inception Date Domestic Equity Strategies Brown Advisory (BAFGX) 3.97 (37) 9.06 (37) 10.74 (90) N/A NIA N/A 14.72 (95) 02/01/2013 Russell 1000 Growth Index 3.84 (39) 8.81 (44) 16.09 (32) 16.34 (28) 15.63 (17) 10.68 (19) 20.67 (30) IM U.S. Large Cap Growth Equity (MF) Median 3.37 8.68 14.65 15.14 13.99 9.40 19.57 Gabelli/GAMCO Value 2.54 (34) 10.64 (9) 15.96 (7) N/A N/A N/A 18.75 (36) 02/01/2013 Russell 3000 Value Index -0.51 (86) 4.77 (63) 8.94 (53) 16.30 (49) 13.66 (62) 7.83 (86) 16.70 (63) IM U.S. All Cap Value Equity (SA+CF) Median 1.45 6.07 9.27 16.18 14.51 9.68 17.49 International Equity Strategies Europacific Growth (RERGX) 5.97 (13) 4.23 (12) 2.79 (17) 9.94 (16) N/A N/A 10.05 (15) 06/01/2010 MSCI AC World ex USA 3.59 (81) -0.36 (76) -0.57 (31) 6.89 (78) 5.29 (65) 1.71 (26) 8.08 (86) IM International Large Cap Core Equity (MF) Median 5.06 0.78 -1.34 8.26 5.58 1.07 8.93 Fixed Income Strategies Garcia Hamilton NIA NIA NIA N/A N/A NIA -0.49 (74) 02/01/2015 Barclays Aggregate Index 1.61 (69) 3.43 (57) 5.72 (64) 3.10 (87) 4.41 (86) 4.69 (86) -0.48 (73) IM U.S. Broad Market Core Fixed Income (SA+CF) Median 1.70 3.46 5.87 3.61 4.93 5.28 -0.39 Templeton Global Total Return (FTTRX) 0.30 (43) -1.31 (50) 0.57 (42) N/A NIA NIA 2.88 (38) 10/01/2013 Global Fixed Income Index -0.02 (52) -1.63 (57) -1.25 (54) 2.67 (39) 5.22 (19) 5.85 (13) 1.95 (47) IM Global Fixed Income (MF) Median 0.06 -1.34 -0.91 1.71 2.96 3.34 1.40 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior to June 2010 do not include cash. BOGDAHN 19 GROUP Comparative Performance Total Fund (Gross) Total Fund Policy All Public Plans -Total Fund Median Total Fund (Net) Total Equity Total Equity Policy Domestic Equity Total Domestic Equity Policy IM U.S. All Cap Core Equity (SA+CF+MF) Median International Equity Total International Equity Policy IM International Large Cap Core Equity (MF) Median Total Fixed Incorm Total Fixed Income Policy Domestic Fixed Income Total Domestic Fixed Income Policy IM U.S. Broad Market Fixed Income (SA+CF+MF) Median Global Fixed Income Global Fixed Income Index IM Global Fixed Income (MF) Median Tequesta Public Safety Officers' Pension Fund Comparative Performance: Fiscal Year Returns As of March 31, 2015 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior mJune zo,odonot include cash. (� 20 BOGDAHN \� GROUP Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 FYTD To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 6.68 (5) 8.53 (82) 11.17 (74) 15.26 (82) 0.23 (52) 14.56 (2) 4.51 (72) 11.01 (30) 12.23 (56) 17.88 (51) 1.32 (30) 10.03 (47) 5.33 10.10 12.53 17.89 0.32 9.90 6.57 8.32 10.78 14.79 -0.09 13.99 9.07 11.53 20.30 25.01 -3.81 20.84 5.40 14.79 21.09 27.21 -1.09 11.23 9.98 (11) 12.49 (77) 20.73 (73) 26.39 (51) -2.00 (55) 19.94 (2) 7.13 (45) 17.76 (26) 21.60 (64) 30.20 (20) 0.55 (27) 10.40 (42) 6.88 15.78 23.35 26.43 -1.70 9.81 4.43 (12) 6.99 (20) 18.18 (79) 18.57 (6) -12.08 (69) N/A -0.36 (76) 5.22 (27) 18.07 (79) 14.33 (67) -8.94 (21) N/A 0.78 3.74 21.83 15.48 -11.06 3.58 2.36, 3.43 4.47 4.14 4.51 7.12 2.71 4.06 -0.61 4.31 4.22 7.05 3.03 (44) 3.29 (87) -1.47 (66) 4.14 (98) 4.51 (46) 7.12 (95) 3.43 (22) 3.96 (73) -0.77 (43) 4.31 (97) 4.22 (54) 7.05 (96) 2.85 4.74 -0.98 7.75 4.37 9.97 -1.31 (50) 5.73 (23) N/A N/A N/A N/A -1.63 (57) 4.65 (38) -1.58 (52) 14.19 (3) 2.52 (39) 12.95 (11) -1.34 3.53 -1.52 7.19 1.61 7.82 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior mJune zo,odonot include cash. (� 20 BOGDAHN \� GROUP Tequesta Public Safety Officers' Pension Fund Comparative Performance: Fiscal Year Returns As of March 31, 2015 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior to June 2010 do not include cash. BOGDAHN 21 GROUP FYTD Oct -2013 To Sep -2014 Oct -2012 To Sep -2013 Oct -2011 To Sep -2012 Oct -2010 To Sep -2011 Oct -2009 To Sep -2010 Domestic Equity Strategies Brown Advisory (BAFGX) 9.06 (37) 9.64 (99) N/A N/A N/A N/A Russell 1000 Growth Index 8.81 (44) 19.15 (23) 19.27 (54) 29.19 (35) 3.78 (18) 12.65 (23) IM U.S. Large Cap Growth Equity (MF) Median 8.68 16.93 19.46 27.10 0.60 10.18 Gabelli/GAMCO Value 10.64 (9) 15.31 (53) N/A N/A N/A N/A Russell 3000 Value Index 4.77 (63) 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (61) 9.15 (71) IM U.S. All Cap Value Equity (SA+CF) Median 6.07 15.40 26.41 27.73 -1.28 10.75 Manning and Napier N/A N/A N/A 25.70 N/A N/A Russell 3000 Index 7.13 17.76 21.60 30.20 0.55 10.96 Rockwood Equity N/A N/A N/A 27.05 -1.83 19.94 Total Domestic Equity Policy 7.13 17.76 21.60 30.20 0.55 10.40 International Equity Strategies Europacific Growth (RERGX) 4.23 (12) 6.98 (20) 18.27 (79) 18.44 (7) -12.33 (71) N/A MSCI AC World ex USA -0.36 (76) 5.22 (27) 16.98 (80) 15.04 (58) -10.42 (27) 8.00 (6) IM International Large Cap Core Equity (MF) Median 0.78 3.74 21.83 15.48 -11.06 3.58 Fixed Income Strategies Garcia Hamilton N/A N/A N/A N/A N/A N/A Barclays Aggregate Index 3.43 (57) 3.96 (80) -1.68 (80) 5.16 (90) 5.26 (50) 8.16 (87) IM U.S. Broad Market Core Fixed Income (SA+CF) Median 3.46 4.50 -1.28 6.60 5.26 9.20 Templeton Global Total Return (FTTRX) -1.31 (50) 5.73 (23) N/A N/A N/A N/A Global Fixed Income Index -1.63 (57) 4.65 (38) -1.58 (52) 14.19 (3) 2.52 (39) 12.95 (11) IM Global Fixed Income (MF) Median -1.34 3.53 -1.52 7.19 1.61 7.82 Rockwood Fixed Income N/A N/A N/A 4.14 4.51 7.12 Total Fixed Income Policy 2.71 4.06 -0.61 4.31 4.22 7.05 Returns for periods greater than one year are annualized. Returns are expressed as percentages. THE Returns prior to June 2010 do not include cash. BOGDAHN 21 GROUP Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 16.00 14.00 - 12.00 O O 10.00- O O OO O O 8.00 - O • 0iIIIIIIIIIIIIIE 6.00 - 4.00 - 2.00 0.00 - -2.00 QTR FYTD 1 Y 2YR 3YR 4YR 5YR • Total Fund (Gross) 2.96 (22) 6.68 (5) 9.08 (23) 9.63 (71) 9.68 (66) 7.67 (77) 9.40 (58) • Total Fund Policy 1.99 (84) 4.51 (72) 7.76 (55) 10.47 (47) 10.13 (55) 9.03 (35) 9.67 (48) Median 2.54 5.33 8.06 10.39 10.21 8.53 9.65 Comparative Performance O 16.00 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Total Fund (Gross) 3.61 (5) -1.28 (59) 3.57 (57) Total Fund Policy 2.48 (42) -0.87 (37) 4.02 (24) All Public Plans -Total Fund Median 2.27 -1.13 3.63 22 Performance Review Total Fund (Gross) 28.00 24.00 20.00 = - O 16.00 0 O 12.00 =- O O O O O 8.00 - 4.00 O 0.00 '" O O O A.00 -8.00 -12.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Total Fund (Gross) 8.53 (82) 11.17 (74) 15.26 (82) 0.23 (52) 14.56 (2) -1.12 (77) • Total Fund Policy 11.01 (30) 1223 (56) 17.88 (51) 1.32 (30) 10.03 (47) 0.48 (65) Median 10.10 12.53 17.89 0.32 9.90 1.52 1 Otr 1 Qtr 1 Qtr Ending Ending Ending Mar -2014 Dec -2013 Sep -2013 0.51 (98) 5.62 (50) 4.48 (70) 1.84 (38) 5.72 (46) 4.84 (55) 1.71 5.60 4.93 THE (� BOGDAHN GROUP 3 Yr Rolling Under/Over Performance - 5 Years 240 Over Performance N 16.0 8.0 0.0 Under Performance -8.0 -8.0 0.0 8.0 16.0 24.0 Total Fund Policy I%) OOver Performance� Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 10.40 ^, 10.20 .:.. e � 10.00 - 9.80 rc 9.60 9.40 5.81 5.88 5.95 Performance Review Total Fund (Gross) 3 Yr Rolling Percentile Ranking - 5 Years 0.0 25.0 ° ° °/� CxJ 0 o ° ° 0 ° ° ° 50.0 8 ° O ° 8 a Up ° ° ° a ° ° Information Sharpe ° E Error Market ° 75.0 a rc 100.0 ° O ° ° ° ° ° 6/10 12110 6/11 12/11 Total Period 6/12 12/12 6/13 5-25 25 -Median Count Count 12113 614 Median -75 Count 315 75-95 Count • Total Fund (Gross) 20 4 (20%) 6 (30%) 3 (15%) 7 (35%) O Total Fund Policy 20 0 (0%) 15 (75%) 5 (25%) 0 (0%) Peer Group Scattergram - 5 Years 9.80 9.70 e � 9.60 9.50 rc • 9.40 1 I 1 9.30 1 1 6.02 6.09 6.16 6.23 6.30 6.37 8.0 8.2 8.4 8.6 8.8 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Total Fund (Gross) 9.68 • Total Fund Policy 10.13 Median 10.22 5.92 • Total Fund (Gross) 9.40 6.17 • Total Fund Policy 9.67 6.26 Median 9.65 8.48 8.14 8.70 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Capture Capture Total Fund (Gross) 1.46 93.16 88.39 0.24 -0.29 1.59 0.93 3.03 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.59 1.00 3.32 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 2.04 96.99 96.10 -0.33 -0.11 1.10 1.01 4.71 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 1.17 1.00 4.55 Tris 23 (� BOGDAHN GROUP Performance Review (Fiscal Years) Domestic Equity Peer Group Analysis - IM U.S. All Cap Core Equity (SA+CF+MF) 28.00 44.00 24.00 36.00 -• 20.00 28.00 - 0 -16.00 O 0 0 20.00 -. � 0 1200. 0 12.00 3.00 4.00 0 4.00 • N -0.00 40 0 0.00 -12.00 -4.00 -20.00 I -8.00 - L 1 1 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Domestic Equity 3.28 (26) 9.98 (11) 13.50 (17) 15.29 (68) 15.53 (57) 11.06 (74) 1427 (37) • Domestic Equity 12.49 (77) 2073. (73) 26.39 (51) -2.00 (55) 19.94 (2) 10.99 (88) • Total Dom Equity Policy 1.80 (58) 7.13 (45) 12.37 (27) 17.38 (40) 16.43 (37) 14.05 (27) 14.69 (25) O Total Dom Equity Policy 17.76 (26) 21.60 (64) 30.20 (20) 0.55 (27) 10.40 (42) -6.91 (68) Median 2.16 6.88 10.99 16.76 15.90 12.97 13.59 Median 15.78 23.35 26.43 -1.70 9.81 -5.34 Comparative Performance 1 Qtr Ending Dec -2014 1 Qtr Ending Sep -2014 1 Qtr Ending Jm-2014 1 Qtr Ending Mar -2014 1 Qtr Ending Dec -2013 1 Qtr Ending Sep -2013 Domestic Equity 6.49 (13) -1.24 (58) 4.50 (50) 0.06 (92) 8.95 (70) 6.12 (70) Total Domestic Equity Policy 5.24 (34) 0.01 (29) 4.87 (34) 1.97 (51) 10.10 (37) 6.35 (59) IM U.S. All Cap Core Equity (SA+CF+MF) Median 4.43 -0.80 4.49 1.98 9.68 6.81 THE24 i% BOGDAHN \ GROUP Performance Review (Fiscal Years) Domestic Equity 3 Yr Rolling Under/Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 30.0 x 0.0 Over Performance r: 0 0 0 p 0 0 0 15.0 25.0 0 0 0 0 0 0 0 0 0 0 0 w 0.0 50.0 eoo0e8o a 0 0 N E -15.0 E 75.0 0 O O o p° Under u O o -30.0 Performance 100.0 -30.0 -15.0 0.0 15.0 30.0 6110 12110 6,11 12/11 6/12 12/12 6/13 12113 614 315 Total Domestic Equity Policy (% Total Period 5-25 25 -Median Median -75 75-95 • Over Performance • Under Performance Count Count Count Count Earliest Date X Latest Date • Domestic Equity 20 6 (30%) 4 (20%) 6 (30%) 4 (20%) O Total Dom Equity Policy 20 2 (10%) 12 (60%) 6 (30%) 0 (0%) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 16.80 15.12 16.50 ® 14.76 O 16.20 14.40 • 15.90 14.04 •- rc 15.60 � • rc 13.68 - 15.30 - ry 13.32 N 1 A 1 7.56 7.74 7.92 8.10 8.28 8.46 8.64 8.82 9.00 13.68 14.40 15.12 15.84 16.56 17.28 18.00 18.72 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Domestic Equity 15.53 7.85 • Domestic Equity 14.27 17.83 • Total Dom Equity Policy 16.43 8.00 • Total Dom Equity Policy 14.69 14.70 Median 15.90 8.80 Median 13.59 15.12 Historical Statistics - 3 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Domestic Equity 2.45 91.56 85.12 0.33 -0.34 1.61 0.93 4.63 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 1.63 1.00 5.10 Historical Statistics - 5 Years Tracking Up Market Down Market Information Alpha Sharpe Beta Downside Error Capture Capture Ratio Ratio Risk Domestic Equity 4.50 102.46 106.42 -1.39 -0.03 0.96 1.09 8.68 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 - 1.10 1.00 7.71 THE 25 iBOGDAHN `` GROUP Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) 28.00 24.00 20.00 O 16.00 O O 1200. 6.00 00 - 4.00 00 ■ 44.00 36.00 28.00 2000. O 1200. p 4.00 -4.00 Performance Review Brown Advisory (BAFGX) 0.00 -12.00 A.00 I 1 i 1 -20.00 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 • Brown Advisory (BAFGX) 3.97 (37) 9.06 (37) 10.74 (90) 14.14 (95) N/A N/A N/A • Brown Advisory (BAFGX) 9.64 (99) N/A N/A N/A N/A N/A • Russell 1000 Growth 3.84 (39) 8.81 (44) 16.09 (32) 1960. (40) 16.34 (28) 14.99 (24) 15.63 (17) • Russell 1000 Growth 19.15 (23) 19.27 (54) 29.19 (35) 3.78 (18) 12.65 (23) -1.85 (39) Median 3.37 8.68 14.65 19.15 15.14 13.59 13.99 Median 16.93 1946. 27.10 0.60 10.18 -2.91 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Deo2014 Sep -2014 Jun -2014 Mar -2014 Deo2013 Sep -2013 Brown Advisory (BAFGX) 4.89 (48) -0.21 (88) 1.76 (95) -0.10 (54) 8.08 (99) 7.81 (80) Russell 1000 Growth Index 4.78 (51) 1.49 (51) 5.13 (27) 1.12 (13) 10.44 (62) 8.11 (74) IM U.S. Large Cap Growth Equity (MF) Median 4.80 1.51 4.43 0.00 10.82 9.61 Tris 26 (� BOGDAHN GROUP Performance Review Gabelli/GAMCO Value Peer Group Analysis - IM U.S. All Cap Value Equity (SA+CF) 1 Qtr Ending Sep -2014 1 Qtr Ending Jun -2014 1 Qtr Ending Mar -2014 1 Qtr Ending Dec -2013 1 our Ending Sep -2013 Gabelli/GAMCO Value 7.90 (4) -2.18 (65) 7.15 (7) 0.20 (94) 9.79 (42) 28.00 Russell 3000 Value Index 5.31 (29) -0.87 (34) 4.89 (50) 2.92 (31) 5200. 4.23 (90) IM U.S. All Cap Value Equity (SA+CF) Median 4.25 -1.36 4.87 2.08 9.57 24.00 44.00 36.00 2000. O 28.00 16.00 • • O O O zoo �60 20.00 O ® 1200. - c O O 8.00 4.00 O 4.00 O • -4.00 0.00 O O -1200 -4.00 -20 00 -8.00 -28.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 Y 2YR 3YR 4YR 5YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Gabelli/GAMCO Value 2.54 (34) 10.64 (9) 15.96 (7) 16.29 (46) N/A N/A N/A • Gabelli/GAMCO Value 15.31 (53) N/A N/A N/A N/A N/A O Russell 3000 Value -0.51 (86) 4.77 (63) 8.94 (53) 15.12 (60) 16.30 (49) 13.18 (50) 13.66 (62) O Russell 3000 Value 17.66 (28) 22.67 (70) 31.05 (19) -2.22 (61) 9.15 (71) 10.79 (94) Median 1.45 6.07 9.27 16.01 16.18 13.14 14.51 Median 15.40 26.41 27.73 -1.28 10.75 -3.49 Comparative Performance 1 Qtr Ending Deo2014 1 Qtr Ending Sep -2014 1 Qtr Ending Jun -2014 1 Qtr Ending Mar -2014 1 Qtr Ending Dec -2013 1 our Ending Sep -2013 Gabelli/GAMCO Value 7.90 (4) -2.18 (65) 7.15 (7) 0.20 (94) 9.79 (42) 4.56 (83) Russell 3000 Value Index 5.31 (29) -0.87 (34) 4.89 (50) 2.92 (31) 9.95 (40) 4.23 (90) IM U.S. All Cap Value Equity (SA+CF) Median 4.25 -1.36 4.87 2.08 9.57 6.50 "*41THE 27 (� BOGDAHN \�' GROUP Performance Review Europacific Growth (RERGX) Peer Group Analysis - IM International Large Cap Core Equity (MF) 17.00 36.00 14.00 28.00 11.00 0 2000. � 0 � 8.00 0 0 1200. 5.00 0 0 0 0 • O 0 4.00 2.00 J G -4.00 -1.00 0 -12.00 o a 00 -7.00 -20.00 -10.00 -26.00 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 • Europacific Growth 5.97 (13) 4.23 (12) 2.79 (17) 10.12 (20) 9.94 (16) 5.74 (21) N/A • Europacific Growth 6.98 (20) 18.27 (79) 18.44 (7) 12.33 (71) N/A N/A O MSCI AC Wotld ex USA 3.59 (81) -0.36 (76) -0.57 (31) 5.91 (69) 6.89 (78) 3.30 (88) 5.29 (65) O MSCI AC Wotld ex USA 5.22 (27) 16.98 (80) 15.04 (58) 10.42 (27) 8.00 (6) 6.43 (10) Median 5.06 0.78 -1.34 7.19 8.26 4.59 5.58 Median 3.74 21.83 15.48 11.06 3.58 0.98 Comparative Performance 1 Qtr 1 Qtr 1 Otr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jm-2014 Mar -2014 Dec -2013 Sep -2013 Europacific Growth -1.64 (9) -4.21 (12) 2.95 (88) 0.73 (20) 7.71 (2) 9.55 (76) MSCI AC World ex USA -3.81 (50) -5.19 (48) 5.25 (23) 0.61 (23) 4.81 (78) 10.17 (64) IM International Large Cap Core Equity (MF) Median -3.82 -5.26 4.05 0.20 5.51 10.47 THE 28 (� BOGDAHN GROUP 3 Yr Rolling Under/Over Performance - 5 Years 16.0 Over • Performance t 12.0 Q v 8.0 .- O Do O 0 4.0 w Under Performance 0.0 0.0 4.0 8.0 12.0 16.0 MSCI AC World ex USA I%) OOver Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 1200. e 10.00 Q 8.00 6.00 W i 10.92 11.20 11.48 11.76 12.04 12.32 12.60 12.88 Risk (Standard Deviation %) Return Standard Deviation Performance Review Europacific Growth (RERGX) 3 Yr Rolling Percentile Ranking - 5 Years 0.0 25.0 00000000000 0 0 0 0 0 0 0 50.0 0 a 0 E 75.0 00000000 rc 100.0 6/10 12110 6/11 12/11 6112 12/12 6/13 1213 6;14 315 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count • Europacific Growth 8 2 (25%) 4 (50%) 2 (25%) 0 (0%) O MSCI AC Word ex USA 20 11 (55q) 1 (5%) 1 (5%) 7 (35%) Peer Group Scattergram - 5 Years 5.70 5.60 E 5.50 5.40 rc 5.30 Q 5.20 15.80 16.00 16.20 16.40 16.60 16.80 17.00 Risk (Standard Deviation %( Return Standard Deviation • Europacific Growth 9.94 11.25 • Europacific Growth N/A N/A • MSCI AC Word ex USA 6.89 1227 • MSCI AC Word ex USA 5.29 16.09 Median 8.26 12.46 Median 5.58 16.75 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Europacific Growth 3.12 98.47 76.25 3.61 0.87 0.90 0.89 7.43 MSCI AC Word ex USA 0.00 100.00 100.00 0.00 N/A 0.60 1.00 8.48 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Europacific Growth N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC Word ex USA 0.00 100.00 100.00 0.00 NIA 0.40 1.00 10.82 THE 29 BOGDAHN GROUP Performance Review Domestic Fixed Income Peer Group Analysis - IM U.S. Broad Market Fixed Income (SA+CF+MF) 10.00 24.00 2000. 8.00 18.00 8.00 O • lzoo � 4.00 O O 3 • O O 8 8.00 -• zoo • o • - 4.00 •O •o 000 0.00 0 THE30 +� BOGDAHN \ GROUP -4.00 -4.00 -8.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 Y 2YR 3YR 4YR 5YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Domestic Fixed Income 1.83 (30) 3.03 (44) 5.09 (48) 2.11 (76) 2.29 (93) 3.44 (89) 3.68 (90) • Domestic Fixed Income 3.29 (87) -1.47 (66) 4.14 (98) 4.51 (46) 7.12 (95) 9.03 (83) O Total Dom FI Policy 1.61 (54) 3.43 (22) 5.72 (27) 3.12 (32) 3.09 (75) 3.85 (79) 4.04 (85) O Total Dom FI Policy 3.96 (73) -0.77 (43) 4.31 (97) 4.22 (54) 7.05 (96) 10.01 (77) Median 1.63 2.85 5.03 2.74 3.74 4.57 4.94 Median 4.74 -0.98 7.75 4.37 9.97 12.51 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Dec -2013 Sep -2013 Domestic Fixed Income 1.18 (54) -0.36 (73) 2.37 (33) 1.30 (92) -0.04 (76) 1.18 (13) Total Domestic Fixed Income Policy 1.79 (12) 0.17 (29) 2.04 (64) 1.84 (74) -0.14 (83) 0.70 (47) IM U.S. Broad Market Fixed Income (SA+CF+MF) Median 1.24 -0.07 2.17 2.09 0.44 0.66 THE30 +� BOGDAHN \ GROUP 3 Yr Rolling Under/Over Performance - 5 Years e 8.0 ' Over 2.71 E Performance 6o • Total Dom FI Policy 3.09 x 4.0 2.13 • Total Dom FI Policy N 2.0 2.27 e 0.0 3.74 Under Performance 2.82 0.0 2.0 4.0 6.0 8.0 Total Domestic Fixed Income Policy I%) OOver Performance • Under Performance Earliest Date X Latest Date Peer Group Scattergram - 3 Years 4.32 3.84 e � 3.36 2.88 s O rc 2.40 - • 1.92 2.00 2.20 2.40 2.60 2.80 3.00 Risk (Standard Deviation %) Return Standard Deviation Performance Review Domestic Fixed Income 3 Yr Rolling Percentile Ranking - 5 Years 0.0 rc 25.0 50.0 a E 75.0 ® e O O 100.0 6® 9 8 9 0 0 0 e e 0 e® Q O O 6/10 12x10 6/11 12111 6/12 12/12 6;13 1213 614 315 Total Period 5-25 25 -Median Median -75 75-95 Count Count Count Count • Domestic Fixed Income 20 0 (0%) 0 (0%) 2 (10%) 18 (90%) O Total Dom FI Policy 20 0 (0%) 0 (0%) 4 (20%) 16 (80%) Peer Group Scattergram - 5 Years 5.46 5.04 e E 4.62 4.20 O rc 3.78 O 3.36 2.00 2.20 2.40 2.60 2.80 3.00 3.20 Risk (Standard Deviation %) Return Standard Deviation • Domestic Fixed Income 2.29 2.71 • Domestic Fixed Income 3.68 2.68 • Total Dom FI Policy 3.09 2.13 • Total Dom FI Policy 4.04 2.27 Median 3.74 2.82 Median 4.94 2.91 Historical Statistics - 3 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Domestic Fixed Income 1.35 112.05 166.79 -1.73 -0.56 0.66 1.32 2.28 Total Domestic Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.22 1.00 1.30 Historical Statistics - 5 Years Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Capture Capture Domestic Fixed Income 1.13 108.42 149.97 -122 -0.29 1.19 122 1.81 Total Domestic Fixed Income Policy 0.00 100.00 100.00 0.00 N/A 1.68 1.00 1.12 THE 31 Q BOGDAHN \-� GROUP Performance Review Garcia Hamilton Fixed Income Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF) 8.36 7.52 24.00 6.68 2000. 16.00 5.84 0 5.00 1200. 4.16 a 8.00 3.32 0 0 4.00 � () 2.48 0 1.64 0 0.00 0 0.80 -4.00 -0.04 -8.00 Oct -2013 Oct -2012 Oct -2011 Oct -2010 Oct -2009 Oct -2008 To To To To To To QTR FYTD 1 Y 2YR 3YR 4YR 5YR Sep -2014 Sep -2013 Sep -2012 Sep -2011 Sep -2010 Sep -2009 • Garcia Hamilton N/A N/A N/A N/A N/A N/A N/A • Garcia Hamilton N/A N/A N/A N/A N/A N/A O Barclays Aggregate Index 1.61 (69) 3.43 (57) 5.72 (64) 2.77 (72) 3.10 (87) 4.24 (83) 4.41 (86) O Barclays Aggregate Index 3.96 (80) -1.68 (80) 5.16 (90) 5.26 (50) 8.16 (87) 10.56 (82) Median 1.70 3.46 5.87 3.03 3.61 4.65 4.93 Median 4.50 -1.28 6.60 5.26 9.20 12.29 Comparative Performance 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Ending Ending Ending Dec -2014 Sep -2014 Jun -2014 Mar -2014 Deo2013 Sep -2013 Garcia Hamilton N/A N/A N/A N/A N/A N/A Barclays Aggregate Index 1.79 (39) 0.17 (66) 2.04 (73) 1.84 (77) -0.14 (77) 0.57 (63) IM U.S. Broad Market Core Fixed Income (SA+CF) Median 1.72 0.21 2.15 2.02 0.08 0.62 THE32 (� BOGDAHN GROUP Performance Review Templeton Global Total Return (FTTRX) Peer Group Analysis - IM Global Fixed Income (MF) 11.00 30.00 25.00 8.00 2000. 0 5.00 0 0 15.00 O 0 0 2.00 c 10.00 E 00 • 0 L -7.00 0 5.00 0 ML O ■-4.00 0.00 0 5.00 -7.00 -10.00 -10.00 -15.00 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 • Templeton (FTTRX) 0.30 (43) -1.31 (50) 0.57 (42) N/A N/A N/A N/A • Templeton (FTTRX) 5.73 (23) N/A N/A N/A N/A N/A O Global Fixed Income Index -0.02 (52) -1.63 (57) -1.25 (54) 0.70 (43) 2.67 (39) 3.92 (28) 5.22 (19) O Global Fixed Income Index 4.65 (38) -1.58 (52) 14.19 (3) 2.52 (39) 12.95 (11) 19.60 (16) Median 0.06 -1.34 -0.91 0.18 1.71 2.23 2.96 Median 3.53 -1.52 7.19 1.61 7.82 13.86 Comparative Performance 1 Qtr Ending Dec -2014 1 Qtr Ending Sep -2014 1 Qtr Ending Jrn-2014 1 Qtr Ending Mar -2014 1 Qtr Ending Deo2013 1 Qtr Ending Sep -2013 Templeton (FTTRX) -1.61 (72) -0.75 (32) 2.67 (41) 0.47 (98) 3.27 (1) N/A Global Fixed Income Index -1.61 (72) -3.13 (79) 3.62 (11) 3.23 (16) 0.99 (36) 2.29 (10) IM Global Fixed Income (MF) Median -1.06 -1.71 2.39 2.42 0.64 1.00 THE 33 (� BOGDAHN GROUP Tequesta Public Safety Officers' Pension Fund Benchmark History As of March 31, 2015 Total Fund Policy Allocation Mandate Weight (%) Total Equity Policy Allocation Mandate Weight (% ) Apr -2005 Apr -2005 S&P 500 Index 60 S&P 500 Index 100 Barclays Intermediate U.S. Gov/Credit Index 40 J u 1-2010 Jul -2010 Russell 3000 Index 83 Russell 3000 Index 50 MSCI EAFE Index 17 Barclays Intermediate Aggregate Index 40 MSCI EAFE Index 10 Mar -2012 Russell 3000 Index 83 Mar -2012 MSCI AC World ex USA 17 Russell 3000 Index 50 Barclays Intermediate Aggregate Index 40 Sep -2013 MSCI AC World ex USA 10 Russell 3000 Index 77 MSCI AC World ex USA 23 Sep -2013 Russell 3000 Index 50 Barclays Aggregate Index 30 MSCI AC World ex USA 15 Total Fixed Income Policy Global Fixed Income Index 5 Allocation Mandate Weight Apr -2005 Barclays Intermediate U.S. Gov/Credit Index 100 Total Domestic Equity Policy Allocation Mandate Weight (%) Jul -2010 Apr -2005 Barclays Intermediate Aggregate Index 100 S&P 500 Index 100 Sep -2013 Jul -2010 Barclays Aggregate Index 86 Russell 3000 Index 100 Global Fixed Income Index 14 THE 34 j� BOGDAHN \ GROUP Total Domestic Fixed Income Policy Allocation Mandate Apr -2005 Barclays Intermediate U.S. Gov/Credit Index J u I-2010 Barclays Intermediate Aggregate Index Sep -2013 Barclays Aggregate Index Total Internatioanl Equity Policy Allocation Mandate Weight May -2010 MSCI EAFE Index 100 Dec -2012 MSCI AC World ex USA 100 Tequesta Public Safety Officers' Pension Fund Benchmark History As of March 31, 2015 Total Diversifed Fixed Income Policy Weight (%) Allocation Mandate Weighl Jan -1994 100 JPM EMBI+ 33 Barclays US Corp: High Yield 33 Citigroup Non -U.S. World Government Bond 33 100 100 Tier 35 j� BOGDAHN \ GROUP Plan Sponsor TF Asset Allocation vs. All Public Plans -Total Fund 76.0 68.0 60.0 52.0 • 44.0 36.0- 0 6.0-0 a 28.0- 20.0- 8.0-20.0_ PM • 12.0- 4.0- 4.0- 4k 2.04.0--4.0 Plan Sponsor TF Asset Allocation Tequesta Public Safety Officers As of March 31, 2015 -12.0 a US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. r Real Estate Cash • Tequesta Public Safety Officers 49.39 (49) 14.98 (32) 29.13 (52) 4.96 (26) 0.00 0.00 1.54 (36) 5th Percentile 60.53 22.40 41.49 9.37 33.75 10.70 3.72 1st Quartile 53.01 15.30 34.18 4.96 12.72 8.99 1.99 Median 49.03 14.06 29.45 4.62 9.76 5.38 1.06 3rd Quartile 44.39 11.82 24.98 4.37 3.13 4.37 0.60 95th Percentile 28.94 8.64 16.15 3.94 0.72 2.57 0.03 Parentheses contain percentile rankings Calculation based on <Pedodicity> periodicity. THE 36 Q BOGDAHN \-� GROUP Domestic Equity Gabelli/GAMCO Value Brown Advisory (BAFGX) International Equity Europacific Growth (RERGX) Domestic Fixed Income Garcia Hamilton Global Fixed Income Templeton Global Total Return (FTTRX) Cash Accounts Receipt & Disbursement Total Fund Consultant Fee: $15,000 Custodial Fees (FY 2014): $4,898 Tequesta Public Safety Officers' Pension Fund Fee Analysis As of March 31, 2015 Estimated Market Value Estimated Annual Fee Annual Fee Fee Schedule 0.75 2,915,458 21,866 0.75 % of Assets 0.74 2,925,110 21,646 0.74 % of Assets 0.49 1,771,106 8,678 0.49 % of Assets 0.25 3,445,066 8,613 0.25 % of Assets 0.67 585,966 3,926 0.67 % of Assets 0.00 182,206 - 0.00 % of Assets 0.55 11,825,214 64,729 THE: 37 Z' BOGDAHN GROUP, Tequesta Public Safety Officers' Pension Fund Compliance Checklist As of March 31, 2015 Total Fund Compliance: Yes No N/A 1. The Total Plan return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing three year period. ✓ 2. The Total Plan return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing five year period. ✓ 3. The Total Plan return equaled or exceeded the total plan benchmark overthe trailing three year period. ✓ 4. The Total Plan return equaled or exceeded the total plan benchmark overthe trailing five year period. ✓ 5. The Total Plan return ranked within the top 40th percentile of its peer group overthe trailing three year period. ✓ 6. The Total Plan return ranked within the top 40th percentile of its peer group overthe 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. ✓ 4. 100% of the fixed income investments maintained an overall rating of B or better at the time of purchase. ✓ Manager Compliance: Brown (BAFGX) GAMCO Europacific (RERGX) Garcia Hamilton Templeton (FTTRX) Yes No NIA Yes No NIA Yes No NIA Yes No NIA Yes No NIA 1. Manager outperformed the index overthe trailing three year period ✓ ✓ ✓ ✓ ✓ 2. Manager outperformed the index overthe 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 overthe 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. ✓ ✓ ✓ ✓ ✓ 8. Manager reports compliance with PFIA ✓ ✓ ✓ ✓ ✓ THE 38 j� BOGDAHN \ GROUP Writeup Disclosures As of March 31, 2015 Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Tequesta Public Safety Officers' Pension Fund in excess of the permitted amount. THE ` 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 product's performance. Down Market Capture -The ratio of average portfolio performance overthe designated benchmark during periods of negative returns. A lowervalue 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 higherfactor 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 higherthe 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 RSquared 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 highervalue demonstrates better historical risk-adjusted performance. Standard Deviation -A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Tracking Error -This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture -The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. THE ao (� 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. 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 byway of Barclays Live. This document may contain data provided by Standard and Poo'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. 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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 yourjurisdiction. Past financial performance is not guarantee of future results. THE BOGDAHN GROUP THE BOGDAHN GRoup sinrplifj�ing your investment and fiduciary, decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Cleveland I Milwaukee Pittsburgh