2018-03-31 Okeechobee Fire (Quarterly Report)Investment Performance Review
Period Ending March 31, 2018
Okeechobee Municipal Firefighters'
Pension Fund
1st Quarter 2018 Market EnvironmentPage 1
Market returns were broadly negative across major equity and fixed incomeindices as we finished a highly volatile 1stquarter of 2018. Broad domestic andinternational equity markets pulled back modestly following a very strong 2017.Fixed income indices also posted negative results, producing returns in-linewith those of equities during the quarter. However, when viewed over the past1-year period, returns remain positive for major indices as improvingmacroeconomic data and robust corporate earnings worldwide outweighed thenear-term market uncertainty. The US stock market represented by theRussell 3000 Index returned -0.6%and 13.8% for the quarter and 1-yearperiod respectively. While the Russell 3000 outperformed the internationalMSCI ACWI ex US Index during the 1stquarter, international stocks haveperformed better over the last 12 months. While the US economy continues toshow signs of expansion, investors focused on the future path of FederalReserve (Fed) monetary policy and the emergence of new protectionist tradepolicies from the Trump administration during the quarter.International equity market benchmarks were mixed with developed marketsposting modestly negative returns and emerging markets earning a slightlypositive result. This is a continuation of the 2017 trend of emerging marketoutperformance relative to developed market equities. Emerging market stocksreturned 1.4% and 24.9% over the quarter and 1-year period respectively.While the developed market MSCI EAFE Index lost ground through the 1stquarter, returning -1.5%, it still posted solid gains over the 1-year periodreturning 14.8%, narrowly outpacing major US indices. The strength infundamentals abroad, ongoing US Dollar (USD) weakness and relativelyaccommodative global central bank policies continue to act as a tailwind tointernational markets relative to their US counterparts. Consequently,as theglobal recovery continues to take hold, international central banks havestartedto telegraph a greater likelihood of reduced stimulus in the future. Manyinternational markets also saw theirreturns influenced, both positively andnegatively, by ongoing political developments throughout the quarter.Interest rates on the US Treasury Yield Curve ended the 1stquarter of 2018higher across all maturities. The movement in rates was considerable duringthe quarter as markets reacted to the greater likelihood of increasing inflationand a more restrictive than expected USmonetary policy going forward. TheFed followed suit by increasing short-term interest rates by 25 basis points attheir March meeting, the third increase in the last 12 months. The risinginterest rate environment negatively impacted fixed income market returns forthe quarter. The Bloomberg Barclays US Aggregate Index fell -1.5% for thequarter, but managed a positive 1.2% return for the 1-year period. Corporatecredit reversed its 2017 trend of outperformance relative to other investmentgrade sectors returning -2.3% during the 1stquarter as credit spreads began towiden.Source: Investment MetricsThe Market EnvironmentMajor Market Index PerformanceAs of March 31, 20181.1%2.7%0.8%0.9%0.4%1.2%11.8%12.2%14.0%13.8%14.0%24.9%14.8%16.5%0.0% 5.0% 10.0% 15.0% 20.0% 25.0%3-Month T-BillBbg Barclays Corp IGBbg Barclays MBSBbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US AggRussell 2000Russell MidCapRussell 1000Russell 3000S&P 500MSCI Emerg MktsMSCI EAFEMSCI ACWxUS1-Year Performance0.3%-2.3%-1.2%-0.8%-1.1%-1.5%-0.1%-0.5%-0.7%-0.6%-0.8%1.4%-1.5%-1.2%-3.0% -2.0% -1.0% 0.0% 1.0% 2.0%3-Month T-BillBbg Barclays Corp IGBbg Barclays MBSBbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US AggRussell 2000Russell MidCapRussell 1000Russell 3000S&P 500MSCI Emerg MktsMSCI EAFEMSCI ACWxUSQuarter PerformancePage 2
Source: Investment MetricsThe Market EnvironmentDomestic Equity Style Index PerformanceAs of March 31, 2018US equity index returns were mixed across the style and capitalizationspectrum to start 2018 with growth indices being the best performers. Marketswere highly volatile throughout the quarter. Investors initially cheeredthepassage of the republican party tax reforms containing reductions to bothindividual and corporate income tax rates, increasing expectations forconsumer spending and corporate earnings going forward. However, high USwage growth in January raised investor concerns that inflation could be pickingup more quickly than the market expected, and would therefore requireincreased Fed action to prevent overheating of the economy. Market volatilityrose and the S&P 500 Index had its first correction since 2015, falling over10%. The market began a recovery from its February low as later economicreleases made it appear that fears over inflation had likely been overstated.However, volatility returned in March when the Trump administrationannounced a series of protectionist tariff policies, with emphasis placedonChina, increasing the potential for a global trade war. Despite the considerablemarket volatility, most US economicdata was positive during the quarter andcongress passed a new federal budgetdeal that will increase governmentspending by about $300 billion over the next two years which can be used tostimulate the economy over the short-term.During the quarter, small cap stocks outperformed mid and large cap equities.The small cap Russell 2000 Index returned -0.1% during the period, while thelarge cap Russell 1000 Index returned -0.7%. The opposite was true over the1-year period as large cap names were the best performers. The Russell 1000returned 14.0% over the trailing year while the Russell 2000 posted a returnof11.8%. This large cap outperformance can be partially explained by theirgreater exposure to foreign markets relative to small cap companies. Thiscanbe especially beneficial during periods of USD weakness, such as thatexperienced over the last year. Large cap companies generate more revenueoutside of the US which can expose them to faster growing markets, foreigntax benefits or strengthening foreign currencies.Growth indices outperformed value indices across the market cap spectrumforthe fifth straight quarter and were all able to post a positive return for the1stquarter of 2018. Performance for growth indices more than doubled valueindex performance for each respective cap segment for the year. Growthbenchmarks benefitted from larger exposures to more cyclical names withinthe information technology, consumer discretionary, health care and industrialssectors. They also benefitted from underweights to more defensive “bondproxy” sectors such as REITs, utilities and telecom. Lower exposure to theenergy sector also acted as tailwind to growth benchmarks.2.3%-0.1%-2.6%2.2%-0.5%-2.5%1.4%-0.7%-2.8%1.5%-0.6%-2.8%-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%2000 Growth2000 Index2000 ValueMidCap GrowthMidCap IndexMidCap Value1000 Growth1000 Index1000 Value3000 Growth3000 Index3000 ValueQuarter Performance - Russell Style Series18.6%11.8%5.1%19.7%12.2%6.5%21.3%14.0%6.9%21.1%13.8%6.8%0.0% 5.0% 10.0% 15.0% 20.0% 25.0%2000 Growth2000 Index2000 ValueMidCap GrowthMidCap IndexMidCap Value1000 Growth1000 Index1000 Value3000 Growth3000 Index3000 Value1-Year Performance - Russell Style SeriesPage 3
The Market EnvironmentGICS Sector Performance & (Sector Weight)As of March 31, 2018Source: Morningstar DirectSector performance was largely negative across large cap sectors for the 1stquarter of 2018. Only two of eleven sectors had positive returns for the quarterand only three of eleven economic sectors outpaced the Russell 1000 Indexreturn. Cyclical sectors tended to do well through the quarter with the higheryielding bond proxy sectors lagging on a relative basis as interest rates rosesharply during the period. Technology stocks continued their 2017 gains overthe quarter, gaining 3.9% and consumer discretionary stocks performed wellon the back of a strong holiday season earning a 2.4% return. The largestdetractors for the quarter were the more defensive telecom services,consumer staples and real estate sectors which returned -7.4%, -6.8% and -5.9% respectively. Over the trailing 1-year period, technology was the bestperforming sector by a relatively wide margin returning an impressive 28.2%.Consumer discretionary and financials also returned greater than 15%. Sevenof eleven large cap economic sectors posted positive returns for the 1-yearperiod with six posting double digit returns. Telecom services was the largestunderperformer losing -5.3%. The three other sectors with negative returns forthe trailing year (real estate, energy and consumer staples) fell by less than1.0%.Small cap sector results were mixed relative to their large capitalizationcounterparts. Only three of eleven economic sectors outpaced the Russell2000 Index return for the quarter and posted positive results for the period.Like the large cap index sector performance, higher dividend yielding sectorsalso tended to trail more economically sensitive sectors. Technology wasthebest performing sector returning 6.4%. However, there were several notabledifferences, particularly in consumer discretionary and energy where there wassignificant underperformance relative to their large cap counterparts.Smallcap sectors trailed large cap sectors in those two categorizations by over5.0%during the quarter. Similarly, the small cap health care sector had muchstronger performance than the large cap health care sector posting a 6.2%gain for the quarter. Over the 1-year period, nine of eleven sectors haveposted gains with four of eleven sectors having returns greater than 10%.Health care stocks were the best performers within the Russell 2000 for theyear returning a solid 28.0%. Energy and real estate were the only Russell2000 sectors to post a negative return,falling -19.1% and -4.1% respectively.Using S&P 500 sector valuations as a proxy for the market, forward P/E ratiosfor eight of the GICS sectors were higher than their long-term averages atquarter-end. Using these historical P/E measures, the utilities, materials andenergy sectors appear the most extended. In contrast the telecommunications,technology and health care sectors were trading at a discount to their long-term average P/E ratios.2.5%-5.3%0.0%10.4%28.2%14.5%11.4%17.8%-0.4%-0.8%16.5%-3.1%-7.4%-5.9%-5.5%3.9%-1.7%-0.9%-0.6%-5.8%-6.8%2.4%-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%Utilities (2.8%)Telecom Services (1.9%)Real Estate (3.4%)Materials (3.3%)Info Technology (24.0%)Industrials (10.6%)Health Care (13.2%)Financials (15.0%)Energy (5.7%)Consumer Staples (7.4%)Consumer Disc (12.8%)Russell 1000Quarter1-Year2.3%7.1%-4.1%7.5%17.0%15.5%28.0%9.1%-19.1%0.5%11.0%-6.4%-4.5%-8.1%-3.0%6.4%-2.5%6.2%0.9%-11.5%-5.4%-2.7%-20.0% -10.0% 0.0% 10.0% 20.0% 30.0%Utilities (3.3%)Telecom Services (0.7%)Real Estate (6.4%)Materials (4.5%)Info Technology (16.9%)Industrials (15.5%)Health Care (16.0%)Financials (17.9%)Energy (3.8%)Consumer Staples (2.6%)Consumer Disc (12.4%)Russell 2000Quarter1-YearPage 4
The Market EnvironmentTop 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000As of March 31, 2018Source: Morningstar DirectTop 10 Weighted StocksTop 10 Weighted StocksRussell 1000 Weight1-Qtr Return1-Year ReturnSector Russell 2000 Weight1-Qtr Return1-Year ReturnSectorApple Inc 3.41% -0.5% 18.6% Information Technology bluebird bio Inc 0.52% -4.1% 87.8% Health CareMicrosoft Corp 2.74% 7.2% 41.5% Information Technology MGIC Investment Corp 0.49% -7.9% 28.3% FinancialsAmazon.com Inc 2.33% 23.8% 63.3% Consumer Discretionary Sterling Bancorp 0.49% -8.1% -3.7% FinancialsBerkshire Hathaway Inc B 1.54% 0.6% 19.7% Financials Wintrust Financial Corp 0.49% 4.7% 25.5% FinancialsJPMorgan Chase & Co 1.52% 3.4% 28.0% Financials Umpqua Holdings Corp0.48% 3.9% 25.1% FinancialsFacebook Inc A 1.51% -9.4% 12.5% Information Technology Idacorp Inc 0.45% -2.7% 9.2% UtilitiesJohnson & Johnson 1.38% -7.7% 5.5% Health Care Hancock Holding Co 0.44% 4.9% 15.8% FinancialsExxon Mobil Corp 1.27% -9.9% -5.5%Energy LivaNova PLC 0.44% 10.7% 80.6% Health CareAlphabet Inc C 1.25% -1.4% 24.4% Information Technology WGL Holdings Inc 0.44% -2.0% 3.8% UtilitiesAlphabet Inc A 1.24% -1.5% 22.3% Information Technology Radian Group Inc 0.42% -7.6% 6.1% FinancialsTop 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter)Russell 1000 Weight1-Qtr Return1-Year ReturnSector Russell 2000 Weight1-Qtr Return1-Year ReturnSectorXL Group Ltd 0.06% 57.8% 41.6% Financials Atara Biotherapeutics Inc 0.13% 115.5% 89.8% Health CareAbiomed Inc 0.05% 55.3% 132.4% Health Care Iovance Biotherapeutics Inc 0.12% 111.3% 126.8% Health CareNetflix Inc 0.48% 53.9% 99.8% Consumer Discretionary Cambium Learning Group Inc 0.01% 97.2% 128.6%Consumer DiscretionaryValidus Holdings Ltd 0.02% 44.6%23.1% Financials G1 Therapeutics Inc 0.01% 86.7% N/A Health CareHerbalife Ltd 0.02% 43.9% 67.6% Consumer Staples Arsanis Inc 0.00% 79.4% N/A Health CareAgios Pharmaceuticals Inc 0.02%43.0% 40.0% Health Care Eastman Kodak Co 0.00% 72.6% -53.5% Information TechnologyMatch Group Inc 0.01% 41.9% 172.1% Information Technology American Public Education Inc 0.07% 71.7%87.8% Consumer DiscretionarySquare Inc A 0.05% 41.9% 184.7% Information Technology Infinera Corp0.16% 71.6% 6.2% Information TechnologyCSRA Inc 0.03% 38.6% 43.0% Information Technology Novavax Inc 0.04% 69.4% 64.1% Health CareDST Systems Inc 0.02% 34.8% 37.9% Information Technology WMIH Corp 0.03% 67.2% -2.1% FinancialsBottom 10 Performing Stocks (by Quarter) Bottom 10 Performing Stocks (by Quarter)Russell 1000 Weight1-Qtr Return1-Year ReturnSector Russell 2000 Weight1-Qtr Return1-Year ReturnSectorColony NorthStar Inc A0.01% -49.8% -52.7% Real Estate Dermira Inc 0.01% -71.3% -76.6% Health CareWeatherford International PLC 0.01%-45.1% -65.6% Energy Ascent Capital Group Inc A 0.00% -68.0% -74.0% Consumer DiscretionaryAkorn Inc 0.01% -41.9% -22.3% Health Care Roadrunner Transportation Systems Inc 0.01% -67.1% -63.0% IndustrialsUniversal Display Corp 0.02% -41.5% 17.4% Information Technology Tintri Inc 0.00% -66.5% N/A Information TechnologyMacquarie Infrastructure Corp 0.01% -40.3% -49.7% Industrials Westmoreland Coal Co 0.00% -66.1% -97.2% EnergyPatterson Companies Inc 0.01% -38.0%-49.6% Health Care Protagonist Therapeutics Inc 0.01% -58.7% -32.9% Health CareMallinckrodt PLC 0.01% -35.8% -67.5%Health Care RAIT Financial Trust 0.00% -56.9% -94.5% Real EstateL Brands Inc 0.04% -35.8%-14.5% Consumer Discretionary Ultra Petroleum Corp 0.08% -54.0% -67.4% EnergyOPKO Health Inc 0.00% -35.3% -60.4% Health Care Melinta Therapeutics Inc 0.01% -53.2% -60.5% Health CareCoherent Inc 0.02% -33.6% -8.9% Information Technology Tetraphase Pharmaceuticals Inc 0.02% -51.3% -66.6% Health CarePage 5
Source: MSCI Global Index Monitor (Returns are Net)Similar to domestic equities, broad international equity returns pulledbackduring the 1stquarter. Performance was largely driven by the same catalystsas the US equity markets, as global macroeconomic data remained generallypositive. US investors in international markets had a currency effect tailwind asthe USD continued its 2017 fall, weakening against most other currenciesduring the 1stquarter. The MSCI ACWI ex US Index lost -1.2% in USD termsand -3.1% in local currency terms. Emerging markets were a bright spot for thequarter with the MSCI Emerging Markets Index finishing with a slight gain.Thereturns over the 1-year period are substantially better with MSCI ACWI ex USreturning 16.5% in USD terms and 8.9% in local currency terms.Results for developed market international indices were negative to start 2018in both USD and local currency terms with the MSCI EAFE Index returning -1.5% and -4.3% respectively. Investors ignored broadly positive globaleconomic data, focusing their attention on US monetary policy uncertainty andthe outlook for global trade relations. There were several newsworthy politicalevents during the quarter. In Europe, Italian elections resulted in a hungparliament with the populist Five Star Movement winning the largest numberofseats. There is currently no clear path for a coalition government to be formedand it is possible elections may need to be re-held. In contrast, GermanChancellor Merkel succeeded in forming a “grand coalition” government duringMarch. In the UK, continued progress was made on “Brexit” as the UK andEuropean Union were able to agree to initial terms on a transition periodfollowing the UK’s separation that should allow for an orderly withdrawal.InJapan, Prime Minister Abe was engulfed in a scandal regarding a discountedland sale to a school operator with ties to his wife and its subsequent coverup.The MSCI EAFE Index returned 14.8% and 5.3% for the last twelve months inUSD and local currency terms respectively.The MSCI Emerging Market Index outperformed developed markets for the 1stquarter, posting a narrow gain of 1.4% and 0.7% in USD and local currencyterms respectively. While emerging markets were also affected by the riseinglobal market volatility, strong GDP and corporate earnings growth combinedwith USD weakness helped them to finish the quarter ahead. China modestlyoutperformed despite late quarter trade tensions with the US. Brazil was theindex’s strongest performer, returning 12.4% in USD terms, after formerPresident Lula da Silva had a corruption and money laundering convictionupheld, likely preventing him from running for office again and opening thedoor for future economic reforms. Russian equities also performed well afterStandard & Poor’s raised the countriescredit rating to investment grade for thefirst time in over a decade citing prudent policy responses to sanctions andfalling commodity prices. Indian stocks underperformed after fraud allegationsemerged at a state-run bank. One year returns for the MSCI Emerging MarketIndex were 24.9% in USD terms and 22.0% in terms of local currency.The Market EnvironmentInternational and Regional Market Index Performance (Country Count)As of March 31, 20186.0%0.6%-2.9%0.7%-4.1%-4.4%-4.3%-4.3%-3.1%8.0%0.8%-0.9%1.4%-0.7%-2.0%-1.5%-2.0%-1.2%-6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%EM Latin Amer (5)EM Asia (9)EM EMEA (10)Emerging Mkt (24)Pacific (5)Europe & ME (16)EAFE (21)WORLD x US (22)AC World x US (46)Quarter PerformanceUSDLocal Currency20.2%24.7%12.0%22.0%11.9%1.9%5.3%5.0%8.9%19.3%27.0%20.1%24.9%15.8%14.3%14.8%13.9%16.5%0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%EM Latin Amer (5)EM Asia (9)EM EMEA (10)Emerging Mkt (24)Pacific (5)Europe & ME (16)EAFE (21)WORLD x US (22)AC World x US (46)1-Year PerformanceUSDLocal CurrencyPage 6
The Market EnvironmentUS Dollar International Index Attribution & Country DetailAs of March 31, 2018Source: MSCI Global Index Monitor (Returns are Net in USD)MSCI-EAFE MSCI-ACWIxUS Quarter 1- YearCountry Weight Weight Return ReturnJapan 24.6% 16.8% 0.8% 19.6%United Kingdom 17.3% 11.8% -3.9% 11.9%France 10.9% 7.5% 0.3% 20.4%Germany 9.7% 6.6% -3.6% 13.6%Switzerland 7.8% 5.3% -4.3% 8.2%Australia 6.6% 4.5% -6.2% 1.4%Netherlands 3.7%2.5% 1.0% 19.9%Hong Kong 3.6% 2.5% -1.4% 18.4%Spain 3.2% 2.2% -1.7% 8.8%Sweden 2.7% 1.8% -2.4% 7.6%Italy 2.5% 1.7% 5.4% 27.5%Denmark 1.8% 1.2% -1.5% 25.1%Singapore 1.4% 0.9% 2.8% 22.8%Belgium 1.1% 0.8% 0.5% 13.3%Finland 1.0% 0.7% 8.2% 23.5%Norway 0.7% 0.5% 2.3% 29.3%Ireland 0.5% 0.3% -5.9% 7.2%Israel 0.5% 0.3% -5.3% -8.4%Austria 0.3% 0.2% 2.2% 48.5%New Zealand 0.2% 0.1% -5.1% 4.0%Portugal 0.2% 0.1% 3.1% 17.9%Total EAFE Countries 100.0% 68.3% -1.5% 14.8%Canada 6.2% -7.4% 4.9%Total Developed Countries 74.5% -2.0% 13.9%China 7.6% 1.8% 38.9%Korea 3.9% -0.5% 25.4%Taiwan 3.0% 5.7% 20.6%India 2.1% -7.0% 10.2%Brazil 1.9% 12.4% 26.4%South Africa 1.7% -4.2% 25.0%Russia 0.9% 9.4% 20.6%Mexico 0.7% 0.9% 0.9%Malaysia 0.6% 8.5% 25.3%Thailand 0.6% 9.0% 35.0%Indonesia 0.5% -7.2% 7.8%Chile 0.3% 1.5% 24.5%Poland 0.3% -8.2% 20.7%Philippines 0.3% -11.6% 3.8%Turkey 0.3% -5.0% 18.6%United Arab Emirates 0.2% -1.0% -0.4%Qatar 0.1% 2.5% -11.0%Colombia 0.1% 4.9% 15.4%Peru 0.1% 10.3% 44.7%Greece 0.1% -6.8% 24.3%Hungary 0.1% -1.0% 38.6%Czech Republic0.1% 6.4% 36.4%Egypt 0.0% 10.9% 14.5%Pakistan 0.0% 11.4% -14.0%Total Emerging Countries 25.5% 1.4% 24.9%Total ACWIxUS Countries 100.0% -1.2% 16.5%MSCI - EAFE Sector Weight Quarter Return 1-Year ReturnConsumer Discretionary 12.6% 0.7% 19.2%Consumer Staples 11.1% -3.0% 10.4%Energy 5.3% -2.0% 21.4%Financials 21.1% -2.2% 13.6%Health Care 10.2% -0.9% 7.0%Industrials 14.6% -1.5% 17.4%Information Technology 6.6% 1.1% 26.2%Materials 8.0% -3.8% 19.8%Real Estate 3.5% -1.5% 13.1%Telecommunication Services 3.8% -3.9% 3.1%Utilities 3.3% 1.3% 12.1%Total 100.0% -1.5% 14.8%MSCI - ACWIxUS Sector Weight Quarter Return 1-Year ReturnConsumer Discretionary 11.4% -1.0% 18.6%Consumer Staples 9.5% -2.8% 11.0%Energy 6.7% -1.8% 15.4%Financials 23.1% -1.1% 15.9%Health Care 7.7% -0.3% 9.1%Industrials 11.8% -1.6% 16.3%Information Technology 11.8% 1.8% 34.3%Materials 8.0% -2.9% 18.4%Real Estate 3.2% -1.7% 16.5%Telecommunication Services 3.9% -4.1% 3.6%Utilities 3.0% 1.2% 10.9%Total 100.0% -1.2% 16.5%MSCI - Emerging Mkt Sector WeightQuarter Return 1-Year ReturnConsumer Discretionary 9.5% -6.1% 16.5%Consumer Staples 6.4% -0.8% 15.8%Energy 7.2% 7.5% 24.7%Financials 24.0% 4.2% 25.6%Health Care 2.8% 7.0% 34.6%Industrials 5.2% -0.8% 10.1%Information Technology 27.8% 2.1% 40.1%Materials 7.3% 0.7% 20.0%Real Estate 2.8% -2.1% 32.5%Telecommunication Services 4.6% -3.7% 4.5%Utilities 2.4% 3.0% 9.2%Total 100.0% 1.4% 24.9%Page 7
Source: BloombergThe Market EnvironmentDomestic Bond Sector & Broad/Global Bond Market Performance (Duration)As of March 31, 2018Broad fixed income benchmarks were mostly negative during the 1stquarter,with international bonds being the exception. Early in the quarter, particularlystrong January wage growth report caused investors to speculate that inflationwas quickly increasing and that the Fed would need to tighten monetary policyto a greater degree than originallyplanned. This sent a shock through financialmarkets and caused interest rates to rise considerably. Economic releaseslater in the quarter showed that the fear of inflation was most likely overstated.Later in the quarter, the Federal Open Market Committee (FOMC), led by newFed Chair Jerome Powell, decided to increase short-term interest rates by25basis points. The current Fed Funds Rate target sits at 1.50% - 1.75%. Thisrate increase was expected by the market and, importantly, the Fed did notchange its plan for further rate increases for 2018. Concerns over newTreasury issuance needed to finance plans for increased fiscal spending alsocould have contributed to the rise in interest rates. The yield curve flattenedthrough the quarter as short-term yields rose at a greater rate than longer-termyields. The Bloomberg Barclays US Aggregate Index fell -1.5% the quarter,butmanaged a positive 1.2% return for the trailing year.Within investment grade credit, higher quality corporate issues generallyoutperformed lower quality issues for the quarter as credit spreads widenedand investors looked for safety amid increased financial market volatility. AAArated credit was the best performing investment grade credit quality segmentreturning -1.2% for the quarter. Interestingly, high yield debt outperformedrelative to investment grade credit, returning -0.9%, as spreads widenedto alesser degree for these issues and the index benefitted from a lower duration.Part of the reason for the increased spread widening for investment gradeissues relative to high yield issues was selling pressure from companiesrepatriating foreign cash reserves in response to the new tax code. Whenviewed over the 1-year period, lower quality issues have advanced to a greaterdegree, partly due to the continued strength in the global economy. High yielddebt returned 3.8% over the period whereas AAA rated issues returned 0.6%.US Treasury securities were the best performing investment grade sectorthrough the quarter, narrowly outperforming US mortgage backed securities(MBS). This reversed the trend of corporate credit outperformance that waswitnessed through 2017 as investors reacted to market volatility and movedinto higher quality government issues. The Bloomberg Barclays US CorporateIG Index returned -2.3% for the quarter as widening credit spreads and ahigher duration acted as headwinds to these issues. US Treasury and USMBS both posted a -1.2%. However, over the trailing year, Treasury securitieswere the worst performing investment grade sector returning 0.4%, while USinvestment grade corporate bonds werethe best performing investment gradesector gaining 2.7%.1.3%3.6%-1.1%-1.5%-0.8%-2.3%-1.2%-1.2%-0.9%-2.2%-2.5%-1.4%-1.2%-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%Multiverse (6.9)Global Agg x US (7.9)Intermediate Agg (4.4)Aggregate (6.1)U.S. TIPS (5.0)U.S. Corporate IG (7.5)U.S. Mortgage (5.0)U.S. Treasury (6.1)U.S. High Yield (4.1)Baa (7.7)A (7.5)AA (5.9)AAA (5.6)Quarter Performance 7.0%11.7%0.5%1.2%0.9%2.7%0.8%0.4%3.8%3.4%2.3%1.8%0.6%0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%Multiverse (6.9)Global Agg x US (7.9)Intermediate Agg (4.4)Aggregate (6.1)U.S. TIPS (5.0)U.S. Corporate IG (7.5)U.S. Mortgage (5.0)U.S. Treasury (6.1)U.S. High Yield (4.1)Baa (7.7)A (7.5)AA (5.9)AAA (5.6)1-Year PerformancePage 8
Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)The Market EnvironmentMarket Rate & Yield Curve ComparisonAs of March 31, 2018In contrast to their domestic counterparts, global fixed income indices postedgains for the quarter. Global benchmarks are impacted by the same local yieldand duration factors as domestic benchmarks. While these indices haverelatively high durations, which would have acted as a headwind in the currentquarter as interest rates increased, the returns of these indices are alsosignificantly influenced by fluctuations in their currency denominationrelativeto the USD. This currency effect canadd additional return to foreign issuesasit did during calendar year 2017, or itcan further exacerbate negativeperformance as it did in 2016. Global bonds outperformed domestic issuesduring the quarter and 1-year period partially due to a currency effect tailwindcaused by a weakening USD. Returns on global bonds represented by theBloomberg Barclays Global Aggregate ex US Index were 3.6% and 11.7% forthe 1stquarter and trailing twelve months respectively. As the global economycontinues to recover, several international central banks have started tomovetoward a less accommodative posture. Notably, the ECB, has extended itscurrent quantitative easing program well into 2018, but has reduced theamount of monthly asset purchases from60 billion euro per month to 30 billioneuro per month. They also signaled that they would end the program entirelyifthe eurozone recovery continues to flourish. Similarly, the Bank of Japan(BoJ)inferred that they could end their quantitative easing program sometime in2019 if target metrics were met. Lastly, the BoE voted to raise interest rates forthe first time in a decade during the 4thquarter of 2017 and indicated ratesmay rise again more quickly than expected.Much of the index performance detailed in the bar graphs on the previouspage is visible on a time series basis by reviewing the line graphs to the right.The ‘1-Year Trailing Market Rates’ chart illustrates that the 10-year Treasuryyield (green line) rose significantly during the 1stquarter, rising from 2.40%, toa peak of 2.94%, before falling to 2.74% to end the period. The blue lineillustrates changes in the BAA OAS (Option Adjusted Spread). This measurequantifies the additional yield premium that investors require to purchase andhold non-Treasury issues. This line illustrates a steady decline in creditspreads throughout 2017. However, the trend begins to reverse in earlyFebruary. This increase is equivalent to an interest rate increase on corporatebonds, which produces a headwind for corporate bond index returns. Thesecredit spreads have widened by about 17 basis points over the last 3-months.The green shading at the bottom of the graph illustrates the gradual increasein the Federal Funds Rate due to a less accommodative US monetary policy.The lower graph provides a snapshot of the US Treasury yield curve at the endof each of the last four calendar quarters. As mentioned, the yield curvecontinues to flatten as yields on shorter-term maturities have risen morethaninterest rates on the long end of the curve. The significant upward shift ininterest rates that occurred in the 1stquarter is clearly visible.0.000.501.001.502.002.503.003.501 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yrTreasury Yield Curve6/30/20179/30/201712/31/20173/31/20180.000.501.001.502.002.503.003.50Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-181-Year Trailing Market RatesFed Funds RateTED Spread3-Month LiborBAA OAS10yr Treasury10yr TIPSPage 9
Asset Allocation By Segment as of
December 31, 2017 : $4,072,625
Asset Allocation By Segment as of
March 31, 2018 : $4,067,783
Allocation
Segments Market Value Allocation
Domestic Equity 1,918,132 47.1¢
International Equity 622,713 15.3¢
Fixed Income 1,474,043 36.2¢
Cash Equivalent 57,738 1.4¢
Allocation
Segments Market Value Allocation
Domestic Equity 1,925,469 47.3¢
International Equity 629,146 15.5¢
Fixed Income 1,460,819 35.9¢
Cash Equivalent 52,349 1.3¢
Asset Allocation Summary
Total Fund
As of March 31, 2018
NONE
Page 10
Asset Allocation By Manager as of
December 31, 2017 : $4,072,625
Asset Allocation By Manager as of
March 31, 2018 : $4,067,783
Allocation
Market Value Allocation
Dodge & Cox Income Fund (DODIX)1,474,043 36.2¢
Vanguard Index 500 Admiral (VFIAX)646,657 15.9¢
Vanguard Extended Mkt Index (VEXAX)623,842 15.3¢
American Funds EuroPacific Gr R6 (RERGX)622,713 15.3¢
MFS Growth Fund (MFEKX)339,311 8.3¢
Becker Value Equity Fund (BVEIX)308,321 7.6¢
R&D 57,738 1.4¢
Allocation
Market Value Allocation
Dodge & Cox Income Fund (DODIX)1,460,819 35.9¢
Vanguard Index 500 Admiral (VFIAX)641,687 15.8¢
American Funds EuroPacific Gr R6 (RERGX)629,146 15.5¢
Vanguard Extended Mkt Index (VEXAX)624,791 15.4¢
MFS Growth Fund (MFEKX)356,977 8.8¢
Becker Value Equity Fund (BVEIX)302,013 7.4¢
R&D 52,349 1.3¢
Asset Allocation Summary
Total Fund
As of March 31, 2018
NONE
Page 11
Executive Summary
Policy Target In Policy Outside Policy
0.0%10.0%20.0%30.0%40.0%50.0%60.0%-10.0 %
R&D
$52,349.2 (1.3%)
Total Fixed Income Composite
$1,460,819.4 (35.9%)
Total International Equity Composite
$629,146.1 (15.5%)
Total Domestic Equity Composite
$1,925,468.7 (47.3%)
Asset Allocation Compliance
Asset
Allocation
$
Current
Allocation (%)
Minimum
Allocation (%)
Maximum
Allocation (%)
Target
Allocation (%)
Min. Rebal.
($000)
Max. Rebal.
($000)
Target Rebal.
($000)
Total Fund Composite 4,067,783 100.0 N/A N/A 100.0 ---
Total Domestic Equity Composite 1,925,469 47.3 40.0 50.0 45.0 -298,355 108,423 -94,966
Total International Equity Composite 629,146 15.5 10.0 20.0 15.0 -222,368 184,411 -18,979
Total Fixed Income Composite 1,460,819 35.9 30.0 50.0 40.0 -240,484 573,072 166,294
R&D 52,349 1.3 0.0 0.0 0.0 -52,349 -52,349 -52,349
Okeechobee Municipal Firefighters' Pension Fund
Asset Allocation Compliance
As of March 31, 2018
Page 12
Financial Reconciliation Quarter to Date
Market Value
01/01/2018
Net
Transfers Contributions Distributions Management
Fees
Other
Expenses Income Apprec./
Deprec.
Market Value
03/31/2018
Total Equity Composite 2,540,844 -----4,664 9,106 2,554,615
Vanguard Extended Mkt Index (VEXAX)623,842 -----1,807 -858 624,791
Vanguard Index 500 Admiral (VFIAX)646,657 -----2,858 -7,827 641,687
MFS Growth Fund (MFEKX)339,311 ------17,666 356,977
Becker Value Equity Fund (BVEIX)308,321 -------6,308 302,013
American Funds EuroPacific Gr R6 (RERGX)622,713 ------6,433 629,146
Total Fixed Income Composite 1,474,043 -----13,498 -26,721 1,460,819
Dodge & Cox Income Fund (DODIX)1,474,043 -----13,498 -26,721 1,460,819
R&D 57,738 -29,656 -26,776 --8,422 152 -52,349
Total Fund Composite 4,072,625 -29,656 -26,776 --8,422 18,315 -17,615 4,067,783
Financial Reconciliation
Total Fund
1 Quarter Ending March 31, 2018
Page 13
Financial Reconciliation Fiscal Year to Date
Market Value
10/01/2017
Net
Transfers Contributions Distributions Management
Fees
Other
Expenses Income Apprec./
Deprec.
Market Value
03/31/2018
Total Equity Composite 2,407,781 -----52,179 94,655 2,554,615
Dana Large Cap Core ---------
Vanguard Extended Mkt Index (VEXAX)595,142 -----4,792 24,858 624,791
Vanguard Index 500 Admiral (VFIAX)606,403 -----5,966 29,318 641,687
MFS Growth Fund (MFEKX)318,580 -----8,250 30,147 356,977
Becker Value Equity Fund (BVEIX)290,198 -----15,165 -3,351 302,013
American Funds EuroPacific Gr R6 (RERGX)597,458 -----18,005 13,683 629,146
Total Fixed Income Composite 1,426,614 40,467 ----25,481 -31,742 1,460,819
Dodge & Cox Income Fund (DODIX)1,426,614 40,467 ----25,481 -31,742 1,460,819
R&D 76,206 -40,467 112,378 -60,973 --35,121 325 -52,349
Total Fund Composite 3,910,601 -112,378 -60,973 --35,121 77,985 62,913 4,067,783
Financial Reconciliation
Total Fund
October 1, 2017 To March 31, 2018
Page 14
Comparative Performance Trailing Returns
QTR FYTD 1 YR 3 YR 5 YR Inception Inception
Date
Total Fund Composite (Gross)0.01 (27)3.58 (39)10.67 (37)5.75 (75)7.81 (52)5.62 (58)10/01/2007
Total Fund Policy -0.97 (88)2.74 (80)9.17 (73)6.18 (58)7.53 (61)5.56 (62)
Difference 0.98 0.84 1.50 -0.43 0.28 0.06
All Public Plans-Total Fund Median -0.34 3.38 10.20 6.33 7.83 5.74
Total Fund Composite (Net)0.01 3.58 10.67 5.61 7.61 6.57 01/01/2003
Total Fund Policy -0.97 2.74 9.17 6.18 7.53 6.95
Difference 0.98 0.84 1.50 -0.57 0.08 -0.38
Total Equity Composite 0.54 6.10 16.26 8.00 10.81 8.61 01/01/2003
Total Equity Policy -0.72 5.36 14.37 9.65 12.14 9.39
Difference 1.26 0.74 1.89 -1.65 -1.33 -0.78
Total Domestic Equity Composite 0.38 6.36 14.69 8.01 11.34 8.77 01/01/2003
Total Domestic Equtiy Policy -0.64 5.65 13.81 10.22 13.03 10.03
Difference 1.02 0.71 0.88 -2.21 -1.69 -1.26
Becker Value Equity Fund (BVEIX)-2.05 (31)4.07 (36)8.15 (65)N/A N/A 6.81 (62)03/01/2017
Russell 1000 Value Index -2.83 (62)2.34 (70)6.95 (78)7.88 (45)10.78 (39)5.40 (82)
Difference 0.78 1.73 1.20 N/A N/A 1.41
IM U.S. Large Cap Value Equity (MF) Median -2.47 3.28 9.23 7.67 10.43 7.76
Vanguard Index 500 Admiral (VFIAX)-0.77 (44)5.82 (40)13.95 (41)N/A N/A 12.93 (39)03/01/2017
S&P 500 Index -0.76 (43)5.84 (39)13.99 (40)10.78 (14)13.31 (14)12.97 (39)
Difference -0.01 -0.02 -0.04 N/A N/A -0.04
IM U.S. Large Cap Core Equity (MF) Median -1.11 5.35 13.31 9.25 12.05 12.06
MFS Growth Fund (MFEKX)5.21 (16)12.05 (17)25.61 (23)N/A N/A 25.03 (24)03/01/2017
Russell 1000 Growth Index 1.42 (76)9.39 (57)21.25 (54)12.90 (23)15.53 (26)20.74 (55)
Difference 3.79 2.66 4.36 N/A N/A 4.29
IM U.S. Large Cap Growth Equity (MF) Median 2.82 9.72 21.55 11.44 14.51 21.11
Vanguard Extended Mkt Index (VEXAX)0.15 (22)4.98 (15)13.13 (11)8.06 (38)N/A 8.77 (20)01/01/2014
S&P Completion Index 0.12 (22)4.97 (16)13.09 (11)7.97 (40)11.77 (18)8.68 (22)
Difference 0.03 0.01 0.04 0.09 N/A 0.09
IM U.S. SMID Cap Core Equity (MF) Median -1.02 2.79 9.21 7.52 10.60 7.43
Comparative Performance
Total Fund
As of March 31, 2018
Returns for periods greater than one year are annualized.
Returns are expressed as percentages. Manager performance is an estimate and subject to change.
Page 15
Comparative Performance
Total Fund
As of March 31, 2018
QTR FYTD 1 YR 3 YR 5 YR Inception Inception
Date
Total International Equity Composite 1.03 5.30 21.18 7.93 N/A 6.40 01/01/2014
Total International Equity Policy -1.08 3.93 17.05 6.68 6.37 4.68
Difference 2.11 1.37 4.13 1.25 N/A 1.72
American Funds EuroPacific Gr R6 (RERGX)1.03 (12)5.30 (14)21.18 (10)7.93 (13)N/A 6.40 (9)01/01/2014
MSCI AC World ex USA -1.08 (60)3.93 (41)17.05 (44)6.68 (43)6.37 (50)4.68 (42)
Difference 2.11 1.37 4.13 1.25 N/A 1.72
IM International Large Cap Growth Equity (MF) Median -0.70 3.30 16.10 6.33 6.36 4.36
Total Fixed Income Composite -0.90 -0.42 2.22 2.35 2.60 3.56 01/01/2003
Total Fixed Income Policy -1.46 -1.08 1.20 1.20 1.82 3.75
Difference 0.56 0.66 1.02 1.15 0.78 -0.19
Dodge & Cox Income Fund (DODIX)-0.90 (7)-0.42 (6)2.21 (7)2.34 (2)2.77 (2)2.68 (3)11/01/2012
Blmbg. Barc. U.S. Aggregate Index -1.46 (46)-1.08 (42)1.20 (45)1.20 (40)1.82 (35)1.66 (40)
Difference 0.56 0.66 1.01 1.14 0.95 1.02
IM U.S. Broad Market Core Fixed Income (MF) Median -1.48 -1.16 1.11 1.10 1.64 1.56
Returns for periods greater than one year are annualized.
Returns are expressed as percentages. Manager performance is an estimate and subject to change.
Page 16
Comparative Performance Fiscal Year Returns
Oct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
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
Oct-2008
To
Sep-2009
Total Fund Composite (Gross)12.18 (51)8.47 (79)-0.63 (53)12.18 (10)8.60 (94)18.27 (42)-1.69 (87)11.01 (24)1.69 (51)
Total Fund Policy 11.19 (73)10.43 (24)-0.74 (56)10.33 (48)10.28 (83)17.77 (54)2.00 (17)9.68 (56)0.48 (68)
Difference 0.99 -1.96 0.11 1.85 -1.68 0.50 -3.69 1.33 1.21
All Public Plans-Total Fund Median 12.18 9.67 -0.47 10.17 12.49 17.96 0.30 9.88 1.69
Total Fund Composite (Net)11.97 8.36 -0.82 11.85 8.19 17.72 -2.18 10.40 1.33
Total Fund Policy 11.19 10.43 -0.74 10.33 10.28 17.77 2.00 9.68 0.48
Difference 0.78 -2.07 -0.08 1.52 -2.09 -0.05 -4.18 0.72 0.85
Total Equity Composite 18.99 9.70 -1.20 15.22 13.59 26.76 -3.31 14.20 -5.06
Total Equity Policy 19.14 13.68 -3.37 14.58 18.84 26.35 -0.48 10.16 -6.91
Difference -0.15 -3.98 2.17 0.64 -5.25 0.41 -2.83 4.04 1.85
Total Domestic Equity Composite 18.44 10.04 -0.01 16.46 13.59 26.76 -3.31 14.20 -5.06
Total Domestic Equtiy Policy 18.71 14.96 -0.49 17.76 21.60 30.20 0.55 10.96 -6.42
Difference -0.27 -4.92 0.48 -1.30 -8.01 -3.44 -3.86 3.24 1.36
Dana Large Cap Core N/A 8.40 (90)0.09 (49)N/A N/A N/A N/A N/A N/A
S&P 500 Index 18.61 (53)15.43 (22)-0.61 (62)19.73 (45)19.34 (65)30.20 (45)1.14 (51)10.16 (40)-6.91 (64)
Difference N/A -7.03 0.70 N/A N/A N/A N/A N/A N/A
IM U.S. Large Cap Core Equity (SA+CF) Median 18.71 13.16 0.02 19.25 20.62 29.70 1.16 9.50 -5.79
Vanguard Extended Mkt Index (VEXAX)19.00 (42)13.44 (52)-0.21 (58)N/A N/A N/A N/A N/A N/A
S&P Completion Index 18.91 (44)13.26 (55)-0.27 (59)9.66 (20)31.34 (28)30.37 (38)-2.06 (34)15.92 (26)-3.92 (36)
Difference 0.09 0.18 0.06 N/A N/A N/A N/A N/A N/A
IM U.S. SMID Cap Core Equity (MF) Median 18.34 13.66 0.45 6.60 29.32 29.18 -3.59 13.93 -6.47
Vanguard Index 500 Admiral (VFIAX)N/A N/A N/A N/A N/A N/A N/A N/A N/A
S&P 500 Index 18.61 (43)15.43 (15)-0.61 (27)19.73 (17)19.34 (61)30.20 (24)1.14 (25)10.16 (24)-6.91 (61)
Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A
IM U.S. Large Cap Core Equity (MF) Median 18.18 12.72 -1.84 17.34 20.01 28.04 -1.07 8.27 -5.68
MFS Growth Fund (MFEKX)N/A N/A N/A N/A N/A N/A N/A N/A N/A
Russell 1000 Growth Index 21.94 (27)13.76 (17)3.17 (41)19.15 (22)19.27 (53)29.19 (34)3.78 (18)12.65 (26)-1.85 (42)
Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A
IM U.S. Large Cap Growth Equity (MF) Median 19.99 10.74 2.60 16.85 19.44 27.29 0.50 10.31 -2.64
Becker Value Equity Fund (BVEIX)N/A N/A N/A N/A N/A N/A N/A N/A N/A
Russell 1000 Value Index 15.12 (72)16.19 (17)-4.42 (38)18.89 (19)22.30 (55)30.92 (14)-1.89 (26)8.90 (28)-10.62 (80)
Difference N/A N/A N/A N/A N/A N/A N/A N/A N/A
IM U.S. Large Cap Value Equity (MF) Median 16.84 12.49 -5.19 17.20 22.54 28.41 -3.55 6.83 -7.16
Comparative Performance
Total Fund
As of March 31, 2018
Returns for periods greater than one year are annualized.
Returns are expressed as percentages. Manager performance is an estimate and subject to change.
Page 17
Comparative Performance
Total Fund
As of March 31, 2018
Oct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
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
Oct-2008
To
Sep-2009
Total International Equity Composite 20.64 8.52 -4.93 N/A N/A N/A N/A N/A N/A
Total International Equity Policy 20.15 9.80 -11.78 5.22 16.98 15.04 -10.42 8.00 6.43
Difference 0.49 -1.28 6.85 N/A N/A N/A N/A N/A N/A
American Funds EuroPacific Gr R6 (RERGX)20.63 (6)8.52 (37)-4.93 (34)N/A N/A N/A N/A N/A N/A
MSCI AC World ex USA 20.15 (16)9.80 (28)-11.78 (92)5.22 (31)16.98 (59)15.04 (75)-10.42 (48)8.00 (48)6.43 (18)
Difference 0.48 -1.28 6.85 N/A N/A N/A N/A N/A N/A
IM International Large Cap Growth Equity (MF) Median 17.34 7.58 -5.68 4.49 17.82 17.70 -10.73 7.42 1.91
Returns for periods greater than one year are annualized.
Returns are expressed as percentages. Manager performance is an estimate and subject to change.
Page 18
Comparative Performance
Total Fund
As of March 31, 2018
Oct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
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
Oct-2008
To
Sep-2009
Total Fixed Income Composite 2.57 7.09 0.24 5.18 -1.38 4.93 1.16 5.66 8.45
Total Fixed Income Policy 0.07 5.19 2.94 3.96 -1.68 5.16 5.02 7.77 10.01
Difference 2.50 1.90 -2.70 1.22 0.30 -0.23 -3.86 -2.11 -1.56
Dodge & Cox Income Fund (DODIX)2.57 (3)7.09 (3)0.16 (93)5.76 (9)N/A N/A N/A N/A N/A
Blmbg. Barc. U.S. Aggregate Index 0.07 (63)5.19 (51)2.94 (8)3.96 (59)-1.68 (53)5.16 (81)5.26 (14)8.16 (76)10.56 (59)
Difference 2.50 1.90 -2.78 1.80 N/A N/A N/A N/A N/A
IM U.S. Broad Market Core Fixed Income (MF) Median 0.47 5.21 1.87 4.19 -1.62 6.79 4.30 9.34 11.36
PIMCO Total Return Fund (PTTRX)N/A N/A N/A 3.30 (83)N/A N/A N/A N/A N/A
Blmbg. Barc. U.S. Aggregate Index 0.07 (63)5.19 (51)2.94 (94)3.96 (59)-1.68 (53)5.16 (81)5.26 (14)8.16 (76)10.56 (59)
Difference N/A N/A N/A -0.66 N/A N/A N/A N/A N/A
IM U.S. Broad Market Core Fixed Income (MF) Median 0.47 5.21 5.55 4.19 -1.62 6.79 4.30 9.34 11.36
Bowen Hanes Fixed Income N/A N/A N/A N/A N/A 4.93 (95)1.16 (100)5.66 (100)N/A
Blmbg. Barc. U.S. Aggregate Index 0.07 (86)5.19 (79)2.94 (60)3.96 (80)-1.68 (80)5.16 (91)5.26 (50)8.16 (87)10.56 (82)
Difference N/A N/A N/A N/A N/A -0.23 -4.10 -2.50 N/A
IM U.S. Broad Market Core Fixed Income (SA+CF) Median 0.61 5.66 3.02 4.49 -1.26 6.61 5.26 9.24 12.28
Returns for periods greater than one year are annualized.
Returns are expressed as percentages. Manager performance is an estimate and subject to change.
Page 19
Historical Statistics 3 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 5.75 6.58 0.81 99.71 10 106.26 2
Index 6.18 6.25 0.92 100.00 9 100.00 3
90 Day U.S. Treasury Bill 0.49 0.14 N/A 3.39 11 -1.65 1
Historical Statistics 5 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 7.81 6.62 1.13 104.30 16 104.74 4
Index 7.53 6.08 1.18 100.00 15 100.00 5
90 Day U.S. Treasury Bill 0.31 0.13 N/A 1.95 19 -1.18 1
Risk and Return 3 Years
Investment Index
5.6
5.8
6.0
6.2
6.4
Return (%)6.1 6.2 6.3 6.4 6.5 6.6 6.7
Risk (Standard Deviation %)
Risk and Return 5 Years
Investment Index
7.4
7.5
7.6
7.7
7.8
7.9
Return (%)5.9 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8
Risk (Standard Deviation %)
3 Year Rolling Percentile Rank All Public Plans-Total Fund
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 20 0 (0%)3 (15%)12 (60%)5 (25%)¾
Index 20 0 (0%)9 (45%)11 (55%)0 (0%)¾
5 Year Rolling Percentile Rank All Public Plans-Total Fund
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 20 0 (0%)0 (0%)9 (45%)11 (55%)¾
Index 20 0 (0%)4 (20%)16 (80%)0 (0%)¾
Strategy Review
Total Fund Composite | Total Fund Policy
As of March 31, 2018
Page 20
Peer Group Analysis - All Public Plans-Total Fund
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment 0.01 (27)3.58 (39)10.67 (37)10.70 (42)5.75 (75)6.32 (65)7.81 (52)
Index -0.97 (88)2.74 (80)9.17 (73)9.67 (76)6.18 (58)6.59 (54)7.53 (61)
Median -0.34 3.38 10.20 10.50 6.33 6.64 7.83
Peer Group Analysis - All Public Plans-Total Fund
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment 12.18 (51)8.47 (79)-0.63 (54)12.18 (9)8.60 (94)18.27 (42)
Index 11.19 (73)10.43 (24)-0.74 (56)10.33 (48)10.28 (83)17.77 (54)
Median 12.18 9.66 -0.45 10.18 12.46 17.93
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 3.57 (62)3.56 (40)3.17 (34)3.87 (79)1.09 (37)3.51 (45)
Index 3.75 (50)3.33 (63)2.83 (62)4.09 (69)0.53 (62)3.20 (58)
Median 3.75 3.45 2.97 4.40 0.83 3.37
Strategy Review
Total Fund Composite | Total Fund Policy
As of March 31, 2018
Page 21
Peer Group Analysis - IM U.S. Large Cap Value Equity (MF)
-10.0
-7.0
-4.0
-1.0
2.0
5.0
8.0
11.0
14.0
17.0
20.0
23.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment -2.05 (31)4.07 (36)8.15 (65)N/A N/A N/A N/A
Index -2.83 (62)2.34 (70)6.95 (78)12.92 (59)7.88 (45)8.24 (39)10.78 (39)
Median -2.47 3.28 9.23 13.32 7.67 7.90 10.43
Peer Group Analysis - IM U.S. Large Cap Value Equity (MF)
-22.0
-16.0
-10.0
-4.0
2.0
8.0
14.0
20.0
26.0
32.0
38.0
44.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment N/A N/A N/A N/A N/A N/A
Index 15.12 (72)16.19 (17)-4.42 (38)18.89 (19)22.30 (55)30.92 (14)
Median 16.84 12.49 -5.19 17.20 22.54 28.41
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 6.24 (42)2.92 (75)0.97 (83)N/A N/A N/A
Index 5.33 (62)3.11 (71)1.34 (72)3.27 (69)6.68 (56)3.48 (62)
Median 5.82 3.72 2.11 3.67 6.83 3.91
Strategy Review
Becker Value Equity Fund (BVEIX) | Russell 1000 Value Index
As of March 31, 2018
Page 23
Peer Group Analysis - IM U.S. Large Cap Core Equity (MF)
-7.0
-4.0
-1.0
2.0
5.0
8.0
11.0
14.0
17.0
20.0
23.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment -0.77 (44)5.82 (40)13.95 (41)N/A N/A N/A N/A
Index -0.76 (43)5.84 (39)13.99 (40)15.57 (35)10.78 (14)11.26 (14)13.31 (14)
Median -1.11 5.35 13.31 14.54 9.25 9.66 12.05
Peer Group Analysis - IM U.S. Large Cap Core Equity (MF)
-16.0
-10.0
-4.0
2.0
8.0
14.0
20.0
26.0
32.0
38.0
44.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment N/A N/A N/A N/A N/A N/A
Index 18.61 (43)15.43 (15)-0.61 (27)19.73 (17)19.34 (61)30.20 (24)
Median 18.18 12.72 -1.84 17.34 20.01 28.04
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 6.64 (38)4.48 (45)3.07 (46)N/A N/A N/A
Index 6.64 (38)4.48 (45)3.09 (46)6.07 (35)3.82 (44)3.85 (50)
Median 6.39 4.38 3.00 5.68 3.64 3.83
Strategy Review
Vanguard Index 500 Admiral (VFIAX) | S&P 500 Index
As of March 31, 2018
Page 25
Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF)
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
32.0
36.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment 5.21 (16)12.05 (17)25.61 (23)N/A N/A N/A N/A
Index 1.42 (76)9.39 (57)21.25 (54)18.47 (46)12.90 (23)13.69 (22)15.53 (26)
Median 2.82 9.72 21.55 18.21 11.44 12.36 14.51
Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF)
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment N/A N/A N/A N/A N/A N/A
Index 21.94 (27)13.76 (17)3.17 (41)19.15 (22)19.27 (53)29.19 (34)
Median 19.99 10.74 2.60 16.85 19.44 27.29
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 6.51 (56)5.06 (62)6.70 (20)N/A N/A N/A
Index 7.86 (10)5.90 (35)4.67 (68)8.91 (59)1.01 (15)4.58 (73)
Median 6.66 5.48 5.31 9.38 -1.20 5.72
Strategy Review
MFS Growth Fund (MFEKX) | Russell 1000 Growth Index
As of March 31, 2018
Page 27
Historical Statistics 3 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 8.06 12.01 0.67 100.37 9 99.86 3
Index 7.97 12.00 0.66 100.00 9 100.00 3
90 Day U.S. Treasury Bill 0.49 0.14 N/A 1.87 11 -1.01 1
Historical Statistics 5 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment N/A N/A N/A N/A N/A N/A N/A
Index 11.77 11.89 0.97 100.00 16 100.00 4
90 Day U.S. Treasury Bill 0.31 0.13 N/A 1.01 19 -0.73 1
Risk and Return 3 Years
Investment Index
7.9
8.0
8.1
Return (%)11.9 12.0 12.1
Risk (Standard Deviation %)
Risk and Return 5 Years
Investment Index
11.7
11.8
Return (%)11.8 11.9
Risk (Standard Deviation %)
3 Year Rolling Percentile Rank IM U.S. SMID Cap Core Equity (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 6 0 (0%)4 (67%)2 (33%)0 (0%)¾
Index 20 9 (45%)9 (45%)2 (10%)0 (0%)¾
5 Year Rolling Percentile Rank IM U.S. SMID Cap Core Equity (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 0 0 0 0 0¾
Index 20 12 (60%)8 (40%)0 (0%)0 (0%)¾
Strategy Review
Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index
As of March 31, 2018
Page 28
Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF)
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment 0.15 (22)4.98 (15)13.13 (11)17.71 (21)8.06 (38)8.60 (24)N/A
Index 0.12 (22)4.97 (16)13.09 (11)17.63 (22)7.97 (40)8.51 (27)11.77 (18)
Median -1.02 2.79 9.21 15.31 7.52 7.50 10.60
Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF)
-20.0
-12.0
-4.0
4.0
12.0
20.0
28.0
36.0
44.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment 19.00 (42)13.44 (52)-0.21 (58)N/A N/A N/A
Index 18.91 (44)13.26 (55)-0.27 (59)9.66 (20)31.34 (28)30.37 (38)
Median 18.34 13.66 0.45 6.60 29.32 29.18
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 4.82 (30)4.96 (47)2.67 (19)4.56 (8)5.61 (95)7.26 (38)
Index 4.84 (29)4.96 (46)2.64 (20)4.57 (8)5.55 (95)7.24 (38)
Median 3.78 4.80 1.56 2.04 9.20 6.83
Strategy Review
Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index
As of March 31, 2018
Page 29
Historical Statistics 3 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 7.93 11.25 0.69 93.48 8 82.51 4
Index 6.68 12.31 0.55 100.00 7 100.00 5
90 Day U.S. Treasury Bill 0.49 0.14 N/A 1.79 11 -0.84 1
Historical Statistics 5 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment N/A N/A N/A N/A N/A N/A N/A
Index 6.37 11.79 0.56 100.00 12 100.00 8
90 Day U.S. Treasury Bill 0.31 0.13 N/A 1.16 19 -0.59 1
Risk and Return 3 Years
Investment Index
6.3
6.6
6.9
7.2
7.5
7.8
8.1
8.4
Return (%)10.8 11.0 11.2 11.4 11.6 11.8 12.0 12.2 12.4 12.6
Risk (Standard Deviation %)
Risk and Return 5 Years
Investment Index
6.3
6.4
Return (%)11.7 11.8
Risk (Standard Deviation %)
3 Year Rolling Percentile Rank IM International Large Cap Growth Equity (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 6 6 (100%)0 (0%)0 (0%)0 (0%)¾
Index 20 0 (0%)3 (15%)11 (55%)6 (30%)¾
5 Year Rolling Percentile Rank IM International Large Cap Growth Equity (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 0 0 0 0 0¾
Index 20 0 (0%)3 (15%)10 (50%)7 (35%)¾
Strategy Review
American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA
As of March 31, 2018
Page 30
Peer Group Analysis - IM International Large Cap Growth Equity (MF)
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment 1.03 (12)5.30 (14)21.18 (10)17.07 (4)7.93 (13)6.63 (7)N/A
Index -1.08 (60)3.93 (41)17.05 (44)15.36 (19)6.68 (43)4.82 (56)6.37 (50)
Median -0.70 3.30 16.10 13.31 6.33 5.04 6.36
Peer Group Analysis - IM International Large Cap Growth Equity (MF)
-28.0
-22.0
-16.0
-10.0
-4.0
2.0
8.0
14.0
20.0
26.0
32.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment 20.63 (6)8.52 (37)-4.93 (34)N/A N/A N/A
Index 20.15 (16)9.80 (28)-11.78 (92)5.22 (31)16.98 (59)15.04 (75)
Median 17.34 7.58 -5.68 4.49 17.82 17.70
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 4.23 (39)6.86 (20)7.69 (24)9.37 (20)-4.15 (49)8.23 (4)
Index 5.06 (12)6.25 (34)5.99 (83)7.98 (55)-1.20 (5)7.00 (21)
Median 4.07 4.99 6.99 8.09 -4.17 6.01
Strategy Review
American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA
As of March 31, 2018
Page 31
Historical Statistics 3 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 2.34 2.55 0.73 98.02 8 57.86 4
Index 1.20 2.65 0.28 100.00 8 100.00 4
90 Day U.S. Treasury Bill 0.49 0.14 N/A 7.28 11 -6.86 1
Historical Statistics 5 Years
Return Standard
Deviation
Sharpe
Ratio
Up
Market
Capture
Up
Quarters
Down
Market
Capture
Down
Quarters
Investment 2.77 2.57 0.96 93.60 14 59.93 6
Index 1.82 2.91 0.53 100.00 14 100.00 6
90 Day U.S. Treasury Bill 0.31 0.13 N/A 3.83 19 -4.02 1
Risk and Return 3 Years
Investment Index
0.9
1.2
1.5
1.8
2.1
2.4
2.7
Return (%)2.5 2.6 2.7
Risk (Standard Deviation %)
Risk and Return 5 Years
Investment Index
1.5
1.8
2.1
2.4
2.7
3.0
3.3
Return (%)2.5 2.6 2.7 2.8 2.9 3.0
Risk (Standard Deviation %)
3 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 10 9 (90%)1 (10%)0 (0%)0 (0%)¾
Index 20 3 (15%)8 (40%)9 (45%)0 (0%)¾
5 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (MF)
0.0
25.0
50.0
75.0
100.0Return Percentile Rank6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 3/18
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Investment 2 2 (100%)0 (0%)0 (0%)0 (0%)¾
Index 20 0 (0%)7 (35%)10 (50%)3 (15%)¾
Strategy Review
Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index
As of March 31, 2018
Page 32
Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF)
-3.4
-2.7
-2.0
-1.3
-0.6
0.1
0.8
1.5
2.2
2.9
3.6
4.3
ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR
Investment -0.90 (7)-0.42 (6)2.21 (7)3.30 (4)2.34 (2)2.86 (6)2.77 (2)
Index -1.46 (46)-1.08 (42)1.20 (45)0.82 (63)1.20 (40)2.31 (32)1.82 (35)
Median -1.48 -1.16 1.11 1.13 1.10 2.09 1.64
Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF)
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
ReturnOct-2016
To
Sep-2017
Oct-2015
To
Sep-2016
Oct-2014
To
Sep-2015
Oct-2013
To
Sep-2014
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Investment 2.57 (3)7.09 (3)0.16 (93)5.76 (9)N/A N/A
Index 0.07 (63)5.19 (51)2.94 (8)3.96 (59)-1.68 (53)5.16 (81)
Median 0.47 5.21 1.87 4.19 -1.62 6.79
Comparative Performance
1 Qtr
Ending
Dec-2017
1 Qtr
Ending
Sep-2017
1 Qtr
Ending
Jun-2017
1 Qtr
Ending
Mar-2017
1 Qtr
Ending
Dec-2016
1 Qtr
Ending
Sep-2016
Investment 0.48 (23)1.13 (8)1.50 (44)1.19 (17)-1.24 (3)1.79 (3)
Index 0.39 (38)0.85 (42)1.45 (53)0.82 (69)-2.98 (71)0.46 (75)
Median 0.34 0.81 1.46 0.94 -2.71 0.73
Strategy Review
Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index
As of March 31, 2018
Page 33
Comparative Performance
1 YR 3 YR 5 YR 7 YR 10 YR 15 YR
Becker Value Eq;Inst (BVEIX)8.15 (65)7.40 (56)11.37 (25)N/A N/A N/A
Russell 1000 Value Index 6.95 (78)7.88 (45)10.78 (39)11.00 (27)7.78 (41)9.71 (34)
Difference 1.20 -0.48 0.59 N/A N/A N/A
IM U.S. Large Cap Value Equity (MF) Median 9.23 7.67 10.43 10.26 7.45 9.27
Vanguard 500 Index;Adm (VFIAX)13.95 (10)10.75 (6)13.27 (4)12.67 (4)9.49 (3)10.08 (5)
S&P 500 Index 13.99 (3)10.78 (1)13.31 (1)12.71 (1)9.49 (2)10.10 (2)
Difference -0.04 -0.03 -0.04 -0.04 0.00 -0.02
IM S&P 500 Index (MF) Median 13.62 10.33 12.82 12.19 9.02 9.76
MFS Growth;R6 (MFEKX)25.61 (23)13.64 (13)15.59 (25)N/A N/A N/A
Russell 1000 Growth Index 21.25 (54)12.90 (23)15.53 (26)14.09 (18)11.34 (21)10.88 (31)
Difference 4.36 0.74 0.06 N/A N/A N/A
IM U.S. Large Cap Growth Equity (MF) Median 21.55 11.44 14.51 12.72 10.11 10.23
Vanguard Ext Mk Id;Adm (VEXAX)13.13 (11)8.06 (38)11.86 (16)11.04 (17)10.41 (22)12.26 (15)
S&P Completion Index 13.09 (11)7.97 (40)11.77 (18)10.95 (20)10.29 (26)N/A
Difference 0.04 0.09 0.09 0.09 0.12 N/A
IM U.S. SMID Cap Core Equity (MF) Median 9.21 7.52 10.60 9.63 9.33 11.18
American Funds EuPc;A (AEPGX)20.74 (20)7.55 (21)8.43 (8)6.31 (22)4.55 (14)10.45 (7)
MSCI AC World ex USA 17.05 (44)6.68 (43)6.37 (50)4.73 (70)3.17 (64)9.71 (45)
Difference 3.69 0.87 2.06 1.58 1.38 0.74
IM International Large Cap Growth Equity (MF) Median 16.10 6.33 6.36 5.48 3.68 9.58
Dodge & Cox Income (DODIX)2.21 (7)2.34 (2)2.77 (2)3.66 (8)4.86 (2)4.62 (7)
Blmbg. Barc. U.S. Aggregate Index 1.20 (45)1.20 (40)1.82 (35)2.92 (46)3.63 (54)3.95 (38)
Difference 1.01 1.14 0.95 0.74 1.23 0.67
IM U.S. Broad Market Core Fixed Income (MF) Median 1.11 1.10 1.64 2.87 3.70 3.78
Comparative Performance
Manager Composite Performance Comparison
As of March 31, 2018
Returns for periods greater than one year are annualized.
Returns are expressed as percentages.
Page 34
Estimated
Annual Fee
(%)
Market Value
($)
Estimated
Annual Fee
($)
Fee Schedule
Becker Value Equity Fund (BVEIX)0.68 302,013 2,054 0.68 % of Assets
Vanguard Index 500 Admiral (VFIAX)0.05 641,687 321 0.05 % of Assets
MFS Growth Fund (MFEKX)0.62 356,977 2,213 0.62 % of Assets
Vanguard Extended Mkt Index (VEXAX)0.10 624,791 625 0.10 % of Assets
Total Domestic Equity Composite 0.27 1,925,469 5,213
American Funds EuroPacific Gr R6 (RERGX)0.49 629,146 3,083 0.49 % of Assets
Total International Equity Composite 0.49 629,146 3,083
Dodge & Cox Income Fund (DODIX)0.43 1,460,819 6,282 0.43 % of Assets
Total Fixed Income Composite 0.43 1,460,819 6,282
R&D 52,349 -
Total Fund Composite 0.36 4,067,783 14,577
Okeechobee Municipal Firefighters' Pension Fund
Fee Analysis
As of March 31, 2018
Page 35
Schedule of Investable Assets
Total Fund Composite Net Cash Flow
$0
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
$3,600,000
$4,000,000
$4,400,000
$4,800,000
Market Value3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18
$2,601,897
$4,067,783
Okeechobee Municipal Firefighters' Pension Fund
Schedule of Investable Assets
7 Years Ending March 31, 2018
Page 36
Total Fund Policy
Allocation Mandate Weight (%)
Jan-2003
S&P 500 Index 60.00
Bloomberg Barclays Intermediate US Govt/Credit Idx 40.00
Apr-2011
S&P 500 Index 45.00
MSCI AC World ex USA 15.00
Blmbg. Barc. U.S. Aggregate Index 40.00
Feb-2014
Russell 3000 Index 45.00
MSCI AC World ex USA 15.00
Blmbg. Barc. U.S. Aggregate Index 40.00
Total Equity Policy
Allocation Mandate Weight (%)
Jan-1926
S&P 500 Index 100.00
Apr-2011
S&P 500 Index 75.00
MSCI AC World ex USA 25.00
Feb-2014
Russell 3000 Index 75.00
MSCI AC World ex USA 25.00
Total Fixed Income Policy
Allocation Mandate Weight (%)
Jan-2003
Bloomberg Barclays Intermediate US Govt/Credit Idx 100.00
Apr-2011
Blmbg. Barc. U.S. Aggregate Index 100.00
Feb-2014
Blmbg. Barc. U.S. Aggregate Index 100.00
Total Domestic Equtiy Policy
Allocation Mandate Weight (%)
Jan-1979
Russell 3000 Index 100.00
Total International Equity Policy
Allocation Mandate Weight (%)
Jan-1988
MSCI AC World ex USA 100.00
Benchmark History
Investment Policy Benchmarks
As of March 31,2018
Page 37
Total Fund Compliance:Yes No N/A
Equity Compliance:Yes No N/A
Fixed Income Compliance:Yes No N/A
Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A
Manager Compliance:
Page 38
Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A
Manager Compliance:
Page 39
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. Distributed to Paid In (DPI) - The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. 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. Public Market Equivalent (PME) - Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. 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. Total Value to Paid In (TVPI) - The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund’s life 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. Page 41
Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo 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. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo 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. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client’s 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 Bloomberg Barclays. Bloomberg 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, 2017. 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. Page 42