The URL can be used to link to this page

AndCo (Quarterly Report 06-30-2018)<CBDoc TenantId="2" EntityTypeId="3100" EntityId="79" DocumentTypeId="1" EffectiveDate="06/30/2018" Interval="3" Description="Quarterly Report" /> Investment Performance Review Period Ending June 30, 2018 Okeechobee Municipal Firefighters' Pension Fund 2nd Quarter 2018 Market Environment1 Market returns were mixed across major equity and fixed income indices forthe 2nd quarter of 2018. Broad domestic equity indices had healthy gains assupportive economic and corporate earnings data, helped by a fiscal stimulustailwind resulting from the Republican Party led tax reform passed in late2017,continued to push domestic stocks higher. International indices did not fare aswell during the period, posting negative returns in US dollar (USD) terms,asmarkets were hurt by relatively soft economic data, geopolitical concerns anda strengthening USD. Fixed income returns were somewhat flat for the quarterwith the various sector segments producing minor gains or losses. DespitetheFederal Reserve’s (Fed) ongoing tightening of monetary policy and thepotential for global trade disruptionsresulting from Trump administrationprotectionist trade policies, economic momentum in the US continued to fuelinvestor demand for domestic equities. The US stock market represented bythe Russell 3000 Index returned 3.9% and 14.8% for the quarter and 1-yearperiod respectively.International equity posted negative returns for the quarter with emergingmarkets stocks falling the greatest degree. The developed market MSCI EAFEIndex lost -1.2% as macroeconomic data abroad, while still signaling acontinuation in global growth, appeared to slow throughout the quarter.International markets were also affected by investor concerns surroundingongoing political developments in various countries and continued uncertaintyaround the outlook for global trade relations. International market returns alsofaced a currency effect headwind as the USD appreciated against most othercurrencies during the period. This combination of factors had the greatestinfluence on emerging market equities with the MSCI Emerging Markets Indexposting a sharp decline of -8.0%. One-year returns remain broadly positivewith the MSCI EAFE and MSCI Emerging Markets indices returning 6.8% and8.2% respectively.Interest rates on the US Treasury Yield Curve rose across all maturities duringthe 2nd quarter. The increase in interest rates was most pronounced in short-term maturities resulting in further flattening of the yield curve. The relativelylarge increase at the short-end of the curve was partially due to the Fedsdecision to tighten monetary policy by increasing short-term interest rates forthe second time this year during their June meeting. Also significant was thechange in the Fed’s forecasted schedulefor interest rate increases, whichnow projects two potential additional rate increases in 2018, where it hadpreviously forecast just one. The broad market Bloomberg Barclays USAggregate Index was modestly negative for both the 2nd quarter and the 1-year time period, returning -0.2% and -0.4% respectively. Corporate issueswere the worst performing investment grade sector during the quarter,returning -1.0% as credit spreads continued to widen through 2018.Source: Investment MetricsThe Market EnvironmentMajor Market Index PerformanceAs of June 30, 20180.4%-1.0%0.2%0.8%0.1%-0.2%7.8%2.8%3.6%3.9%3.4%-8.0%-1.2%-2.6%-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%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 Performance1.3%-0.8%0.1%2.1%-0.6%-0.4%17.6%12.3%14.5%14.8%14.4%8.2%6.8%7.3%-5.0%0.0%5.0%10.0% 15.0% 20.0%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 Performance2 Source: Investment MetricsThe Market EnvironmentDomestic Equity Style Index PerformanceAs of June 30, 2018US equity index returns were positive across the style and capitalizationspectrum during the 2nd quarter of 2018. Markets were encouraged by theongoing strength in US economic dataand corporate earnings. Positive datareleases in unemployment, retail sales, consumer consumption, GDP andinvestor sentiment highlighted the continued health of the US economy.Additionally, Q1 2018 corporate earnings announced throughout the periodgrew at an impressive rate as corporate profits were beneficiaries of the late2017 Republican Party tax reforms. Returns for the period were tempered byglobal trade uncertainty as tariffs on steel and aluminum imported fromCanada, Mexico and the European Union took effect with the possibility ofadditional tariffs aimed at China and foreign auto producers being considered.The Trump administration also announced the US withdrawal from the Irannuclear accord, proposing new sanctions, which could disrupt oil marketsinthe future, and made progress toward a denuclearization deal with NorthKorea.During the quarter, small cap stocks outperformed mid and large cap equitiesfor style and core indices. This is partially due to the increased tax reformbenefit small cap companies will receive relative to large caps. Small capstocks have historically paid higher taxes relative to large cap companiessincethey typically generate more of their revenue in the US. More globally orientedlarge caps also faced a considerable headwind from the recent USD strength.Large cap companies generate more revenue outside of the US and anappreciating USD makes US exports more expensive to foreign consumers.The small cap Russell 2000 Index returned 7.8% during the period, while thelarge cap Russell 1000 Index returned 3.6%. Small caps also outperformedover the 1-year period with the Russell 2000 returning 17.6% over the trailingyear while the Russell 1000 posted a return of 14.5%.Style index performance was mixed during the quarter with growth companiesoutperforming in large- and mid-cap, but value stocks outperforming in thesmall-cap space. The Russell 2000 Value Index was the best performing styleindex for the period returning a notable 8.3% for the quarter. Returns overthetrailing year continue to show significant outperformance of growth indicesrelative to their value counterparts with the return of the Russell 1000 GrowthIndex more than tripling the return of the Russell 1000 Value Index. 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 sectorssuch as REITs, utilities and telecom.7.2%7.8%8.3%3.2%2.8%2.4%5.8%3.6%1.2%5.9%3.9%1.7%0.0%2.0%4.0%6.0%8.0%10.0%2000 Growth2000 Index2000 ValueMidCap GrowthMidCap IndexMidCap Value1000 Growth1000 Index1000 Value3000 Growth3000 Index3000 ValueQuarter Performance - Russell Style Series21.9%17.6%13.1%18.5%12.3%7.6%22.5%14.5%6.8%22.5%14.8%7.3%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 Series3 The Market EnvironmentGICS Sector Performance & (Sector Weight)As of June 30, 2018Source: Morningstar DirectSector performance was mixed across large cap sectors for the 2nd quarter of2018. Seven of eleven sectors had positive returns for the quarter and six ofeleven economic sectors outpaced the Russell 1000 Index return. Energy wasthe best performing sector during the quarter, returning 14.1%, as an OPECannounced increase in crude oil production was overshadowed by supplyconcerns in Iran, Venezuela and Libya, resulting in considerably higher oilprices. The consumer discretionary sector also performed well on the backofstrong retail sales and increased consumer spending, gaining 7.9% for theperiod. Technology stocks continued their climb, returning 6.8% over thequarter. Technology names now account for nearly 25% of the market cap ofthe Russell 1000 Index. The largest detractors for the quarter were thefinancials, industrials and consumer staples sectors which returned -3.1%, -2.7% and -1.9% respectively. Over the trailing 1-year period, technologywasthe best performing sector by a relatively wide margin returning an impressive31.3% and the consumer discretionary and energy sectors also posted returnsgreater than 20%. Ten of eleven large cap economic sectors posted positivereturns for the 1-year period with consumer staples being the only sector topost negative performance, returning -3.2%.Quarterly results for small cap sectors were higher relative to their largecapitalization counterparts. All sectors had positive returns during theperiodwith seven of eleven economic sectors outpacing the Russell 2000 Indexreturn for the quarter. Like the large cap index sector performance, industrialsand financials were relative underperformers for the 2nd quarter. Financialswere hurt by a flattening yield curve and concerns over global trade weighedon industrials. Quarterly performance on industrials and financials was3.1%and 4.1% respectively. Energy was the best performing sector in the Russell2000 as well, returning a notable 20.6%. However, there were severaldifferences, particularly in consumer staples and telecom where there wassignificant outperformance relative to their large cap counterparts. Small capsectors beat large cap sectors in those two categorizations by over 10.0%during the quarter. Over the trailing 1-year period, all eleven sectors postedgains. Health care stocks were the best performers within the Russell 2000forthe trailing year returning a solid 29.5%. Energy and technology also postedreturns over 20% for the 1-year period.Using S&P 500 sector valuations as a proxy for the market, forward P/E ratiosfor six of the eleven GICS sectors were higher than their long-term averagesatquarter-end. Using these historical P/E measures, the utilities, consumerdiscretionary and real estate sectors appear the most extended. In contrast thetelecommunications, technology and health care sectors were trading at adiscount to their long-term average P/E ratios.4.5%1.3%4.8%9.9%31.3%6.7%7.3%9.8%22.3%-3.2%22.0%4.2%-0.7%7.3%2.7%6.8%-2.7%3.9%-3.1%14.1%-1.9%7.9%-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%Utilities (2.8%)Telecom Services (1.8%)Real Estate (3.5%)Materials (3.1%)Info Technology (24.8%)Industrials (10.3%)Health Care (13.4%)Financials (14.7%)Energy (6.0%)Consumer Staples (6.6%)Consumer Disc (13.0%)Russell 1000Quarter1-Year7.8%2.8%5.4%11.3%20.9%16.4%29.5%12.5%21.5%17.0%18.9%8.4%11.1%13.2%3.6%7.4%3.1%10.1%4.1%20.6%12.1%9.6%0.0%10.0%20.0%30.0%Utilities (3.3%)Telecom Services (0.6%)Real Estate (6.4%)Materials (4.3%)Info Technology (17.4%)Industrials (14.8%)Health Care (16.7%)Financials (18.0%)Energy (4.0%)Consumer Staples (2.4%)Consumer Disc (12.1%)Russell 2000Quarter1-Year4 The Market EnvironmentTop 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000As of June 30, 2018Source: Morningstar DirectTop 10 Weighted StocksTop 10 Weighted StocksRussell 1000 Weight1-Qtr Return1-Year ReturnSector Russell 2000 Weight1-Qtr Return1-Year ReturnSectorApple Inc 3.53% 10.8% 30.5% Information Technology Five Below Inc 0.24% 33.2% 97.9% Consumer DiscretionaryMicrosoft Corp 2.89% 8.5% 45.8% Information Technology Etsy Inc 0.23%50.4% 181.3% Information TechnologyAmazon.com Inc 2.68% 17.4% 75.6% Consumer Discretionary Blackbaud Inc0.22% 0.8% 20.1% Information TechnologyFacebook Inc A1.79% 21.6%28.7% Information TechnologyLivaNova PLC0.22% 12.8% 63.1% Health CareBerkshire Hathaway Inc B1.40% -6.4% 10.2% FinancialsHaemonetics Corp0.22% 22.6% 127.1% Health CareJPMorgan Chase & Co1.37% -4.8% 16.5% FinancialsEntegris Inc0.22% -2.4% 55.4% Information TechnologyExxon Mobil Corp1.36% 12.0% 6.6% EnergyFibroGen Inc0.21% 35.5% 93.8%Health CareAlphabet Inc C1.32% 8.1% 22.8% Information TechnologyIdacorp Inc0.21% 5.2% 10.9% UtilitiesAlphabet Inc A1.31% 8.9% 21.5% Information TechnologyMedidata Solutions Inc0.21% 28.3% 3.0% Health CareJohnson & Johnson1.26% -4.6% -5.8% Health CareLoxo Oncology Inc0.21% 50.4% 116.3% Health CareTop 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter)Russell 1000Weight1-Qtr Return1-Year ReturnSectorRussell 2000Weight1-Qtr Return1-Year ReturnSectorSarepta Therapeutics Inc0.03% 78.4% 292.1% Health CareTurtle Beach Corp0.01% 746.8% 625.7% Consumer DiscretionaryWayfair Inc Class A0.03% 75.9% 54.5% Consumer DiscretionarySolid Biosciences Inc0.01% 375.1% N/A Health CareChesapeake Energy Corp0.02% 73.5% 5.4% EnergyTandem Diabetes Care Inc0.04% 344.0% 175.2% Health CareWhiting Petroleum Corp0.02% 55.8%139.2% EnergyIntelsat SA0.03% 343.1% 444.4% Telecommunication ServicesTwitter Inc0.12% 50.5% 144.4% Information TechnologyEvolus Inc0.01% 210.0% N/A Health CareAdvanced Micro Devices Inc0.05%49.2% 20.1% Information TechnologyCalifornia Resources Corp0.09% 165.0% 431.5% EnergyExact Sciences Corp0.03% 48.3% 69.0% Health CareTransEnterix Inc0.03% 156.5% 514.1% Health CareUnder Armour Inc C0.02% 46.9% 4.6% Consumer DiscretionaryPenn Virginia Corp0.05% 142.3% 131.0% EnergyTwilio Inc A0.02% 46.7% 92.4% Information TechnologyRegenxbio Inc0.09% 140.4% 263.3% Health CareWeatherford International PLC0.01%43.7% -15.0% EnergyMadrigal Pharmaceuticals Inc0.07%139.5% 1620.1% Health CareBottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter)Russell 1000Weight1-Qtr Return1-Year ReturnSectorRussell 2000Weight1-Qtr Return1-Year ReturnSectorNektar Therapeutics Inc0.03% -54.0% 149.8% Health CareArsanis Inc0.00% -84.1% N/A Health CareAlkermes PLC0.02% -29.0% -29.0% Health CareMenlo Therapeutics Inc0.00% -78.4% N/A Health CareCommScope Holding Co Inc0.02% -26.9% -23.2% Information TechnologyJounce Therapeutics Inc0.01%-65.7% -45.4% Health CareAmerican Airlines Group Inc0.06%-26.8% -23.9% IndustrialsProthena Corp PLC0.03% -60.3% -73.1% Health CareArconic Inc0.03% -25.9% -24.1% IndustrialsBiglari Holdings Inc0.01% -55.1% -54.1% Consumer DiscretionaryCopa Holdings SA Class A0.01% -25.9% -17.0% IndustrialsCatalyst Biosciences Inc0.01% -54.8% 151.0% Health CareFirst Solar Inc0.02% -25.8% 32.0% Information TechnologyRecro Pharma Inc0.00% -54.4% -28.6% Health CareManpowerGroup Inc0.02% -24.4% -21.5% IndustrialsscPharmaceuticals Inc0.00% -54.4% N/A Health CareSwitch Inc Class A0.00% -23.3% N/A Information TechnologyAgenus Inc0.01% -51.8% -41.9% Health CareSkechers USA Inc0.02% -22.8% 1.7%Consumer DiscretionarySyndax Pharmaceuticals Inc0.00% -50.7% -49.7% Health Care5 Source: MSCI Global Index Monitor (Returns are Net)Broad international equity returns were mixed for the quarter. Many developedmarkets were positive in local currency terms, but negative in USD termswhereas emerging markets posted negative returns in both local currency andUSD. Performance was largely driven by the same catalysts as the US equitymarkets with global macroeconomic data remaining generally positive, butreturns being tempered by global trade tensions and ongoing politicaluncertainty. A strengthening USD caused by relatively strong US economicfundamentals and the continued divergence in global monetary policy hurtUSinvestors in international markets. The MSCI ACWI ex US Index gained 1.9%in local currency terms, but lost -2.6% in USD terms during the second quarter.Returns over the 1-year period remain positive in both local currency and USDterms with the MSCI ACWI ex US returning 7.4% and 7.3% respectively.Second quarter results for developed market international indices weregenerally positive in local currency terms with the MSCI EAFE Index returning3.5%. However, an appreciating USD pushed returns for US investors intonegative territory, with the index returning -1.2% in USD terms. Developedmarkets were pushed higher by broadly positive, but slowing, global economicand earnings data despite several significant political events in Europeduringthe quarter. There was considerable volatility surrounding the formationofacoalition government in Italy which called into question Italy’s future aspartofthe European Union. Spain also had a change in leadership after a politicalfundraising scandal led to a vote of no-confidence in Prime Minister Rajoy,forcing him to step down. World markets also reacted to the implementationofnew tariffs on US imports of steel and aluminum and the possibility of newtariffs in the future, including tariffs on auto imports, which would negativelyaffect producers in Europe and Japan. The MSCI EAFE Index returned 6.1%and 6.8% for the last twelve months in local currency and USD termsrespectively.Emerging markets trailed developed markets for the 2nd quarter, postinglosses in local currency terms that were then intensified by the strengtheningUSD. The MSCI Emerging Markets Index returned -3.5% and -8.0% in localcurrency and USD terms respectively. The main factors affecting emergingmarkets were the threat of continued protectionist trade policies from theUScreating uncertainty for export focused economies and rising US interestratescoupled with an appreciating USD. Many emerging market countries andcompanies issue debt denominated in USD and the combination of higherinterest rates and a relatively weaker local currency can put stress on thebalance sheets of these borrowers, especially those heavily dependent onexternal capital. One year returns for the MSCI Emerging Market Index were10.5% in local currency terms and 8.2% in USD terms.The Market EnvironmentInternational and Regional Market Index Performance (Country Count)As June 30, 2018-8.1%-3.4%-0.3%-3.5%2.3%4.2%3.5%3.8%1.9%-17.8%-5.9%-10.2%-8.0%-1.4%-1.2%-1.2%-0.8%-2.6%-20.0% -15.0% -10.0% -5.0%0.0%5.0%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 Currency10.9%10.4%10.8%10.5%9.6%4.2%6.1%6.5%7.4%-0.2%10.1%5.6%8.2%9.9%5.2%6.8%7.0%7.3%-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%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 Currency6 The Market EnvironmentUS Dollar International Index Attribution & Country DetailAs of June 30, 2018Source: MSCI Global Index Monitor (Returns are Net in USD)MSCI - EAFESector Weight Quarter Return 1-Year ReturnConsumer Discretionary12.4%-2.6%10.9%Consumer Staples11.3%0.4%3.1%Energy6.1%11.2%35.8%Financials19.8%-6.2%-0.5%Health Care10.7%1.9%1.7%Industrials14.3%-2.2%7.3%Information Technology6.8%-0.2%15.0%Materials8.2%0.7%16.7%Real Estate3.5%-0.4%7.8%Telecommunication Services3.6%-4.8%-6.3%Utilities3.3%0.5%5.2%Total100.0%-1.2%6.8%MSCI - ACWIxUSSector Weight Quarter Return 1-Year ReturnConsumer Discretionary11.2%-3.5%8.4%Consumer Staples9.7%-0.7%2.9%Energy7.4%7.3%27.5%Financials21.9%-7.3%1.7%Health Care8.1%1.4%3.2%Industrials11.7%-2.7%5.9%Information Technology11.9%-2.9%15.5%Materials8.2%-0.4%16.1%Real Estate3.2%-3.0%6.9%Telecommunication Services3.7%-6.0%-6.3%Utilities3.0%-1.5%3.8%Total100.0%-2.6%7.3%MSCI - Emerging MktSector WeightQuarter Return 1-Year ReturnConsumer Discretionary9.8%-7.1%-0.2%Consumer Staples6.7%-6.2%3.3%Energy7.2%-4.7%24.9%Financials22.8%-12.7%5.5%Health Care3.2%-5.0%22.4%Industrials5.2%-11.2%-5.9%Information Technology27.9%-5.1%15.2%Materials7.6%-5.5%14.0%Real Estate3.0%-11.2%5.6%Telecommunication Services4.3%-9.7%-7.5%Utilities2.4%-8.1%2.2%Total100.0%-8.0%8.2%MSCI-EAFE MSCI-ACWIxUS Quarter1- YearCountryWeightWeightReturnReturnJapan24.0%16.4%-2.8%10.5%United Kingdom18.0%12.3%3.0%10.0%France11.0%7.5%-0.5%9.9%Germany9.5%6.5%-4.0%2.6%Switzerland7.8%5.3%-2.7%-3.4%Australia7.0%4.8%5.2%8.7%Hong Kong3.6%2.5%-1.2%9.2%Netherlands3.6%2.5%-1.8%9.2%Spain3.1%2.1%-4.4%-3.6%Sweden2.6%1.8%-3.7%-4.6%Italy2.4%1.7%-7.3%8.4%Denmark1.7%1.1%-7.0%0.9%Singapore1.3%0.9%-7.5%7.9%Belgium1.1%0.7%-6.0%1.7%Finland1.0%0.7%1.3%10.4%Norway0.7%0.5%2.3%27.1%Ireland0.6%0.4%2.0%5.3%Israel0.5%0.4%10.9%-4.6%Austria0.2%0.2%-10.6%8.9%New Zealand0.2%0.2%5.8%1.7%Portugal0.2%0.1%1.2%15.8%Total EAFE Countries100.0%68.4%-1.2%6.8%Canada6.6%4.7%9.1%Total Developed Countries75.0%-0.8%7.0%China8.2%-3.5%21.2%Korea3.7%-9.2%3.4%Taiwan2.9%-6.3%3.9%India2.2%-0.6%6.5%South Africa1.6%-11.9%6.4%Brazil1.5%-26.4%-0.3%Russia0.9%-6.0%26.0%Mexico0.7%-3.6%-9.3%Malaysia0.6%-11.4%5.6%Thailand0.5%-15.0%12.0%Indonesia0.5%-12.5%-13.1%Chile0.3%-11.5%12.5%Poland0.3%-11.6%-6.2%Philippines0.2%-11.2%-13.9%Qatar0.2%3.5%3.5%Turkey0.2%-25.9%-26.3%United Arab Emirates0.2%-4.4%-6.0%Colombia0.1%6.7%20.1%Peru0.1%-3.2%30.7%Greece0.1%-2.2%-9.2%Hungary0.1%-14.4%-0.6%Czech Republic0.0%-5.4%19.4%Egypt0.0%-8.1%1.9%Pakistan0.0%-20.8%-30.3%Total Emerging Countries25.0%-8.0%8.2%Total ACWIxUS Countries100.0%-2.6%7.3%7 Source: BloombergThe Market EnvironmentDomestic Bond Sector & Broad/Global Bond Market Performance (Duration)As of June 30, 2018Broad fixed income benchmarks had mixed results during the 2nd quarter.Interest rates rose across all maturities on the US Treasury Yield Curve. Earlyin the quarter, rates rose as positive economic data and signs of higherinflation increased investor expectations for another Fed interest ratehike.However, volatility caused by ongoinggeopolitical developments later inthequarter led to an increase in risk aversion and demand for relatively safeassets, driving rates lower throughthe rest of the quarter. Interest ratesonthe10-year Treasury reached a near-term high of 3.11% in mid-May before fallingto end the quarter at 2.87%. As expected, the Federal Open MarketCommittee (FOMC), decided to increase short-term interest rates by 25 basispoints at their June meeting. This is the second rate hike of 2018. The currentFed Funds Rate target range sits at 1.75%-2.00%. The FOMC also updatedtheir forecast for future rate increases, now expecting two potential additionalhikes in 2018 and three in 2019. The yield curve continued to flatten throughthe quarter as short-term yields rose at a greater rate than longer-term yields.The difference in yields between the 2-year and 10-year Treasury now sits atjust 0.3%. The Fed is also continuing to reduce the size of its balance sheetbyslowing its pace of reinvestment as the securities it holds mature. TheBloomberg Barclays US Aggregate Index was relatively flat during the quarter,falling -0.2%. It was also negative for the 1-year period returning -0.4%.Within investment grade credit,higher quality corporate issues outperformedlower quality issues for the quarter as credit spreads widened and investorslooked for safety amid increased financial market volatility. On an absolutebasis, without negating the duration differences in the sub-indices, AAAratedcredit was the best performing investment grade credit quality segmentreturning 0.2% for the quarter. High yield debt outperformed relative toinvestment grade credit, returning1.0%, as spreads widened to a lesserdegree for these issues and the index benefitted from its lower duration. Partof the reason for the increased spread widening for investment grade issuesrelative to high yield issues was continued selling pressure from companiesrepatriating foreign cash reserves in response to the new tax code and lowerdemand from foreign investors due to increased hedging costs and a strongerUSD.Of the Bloomberg Barclays US Aggregate Index’s three broad sectors, USmortgage backed securities (MBS) were the best performing investment gradesector through the quarter, narrowly outperforming US Treasuries. Corporatecredit underperformed as credit spreads widened and investors reacted tomarket volatility by moving into higher quality issues. Higher durationsrelativeto other index sectors also acted as a headwind to these issues. TheBloomberg Barclays US Corporate IG Index returned -1.0%. While TIPS werealso positive, it is important to note these Treasury issues are not part oftheBloomberg Barclays US Aggregate Index.-2.8%-4.8%0.1%-0.2%0.8%-1.0%0.2%0.1%1.0%-1.2%-0.9%-0.2%0.2%-5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0%Multiverse (6.9)Global Agg x US (7.9)Intermediate Agg (4.3)Aggregate (6.0)U.S. TIPS (4.9)U.S. Corporate IG (7.3)U.S. Mortgage (5.1)U.S. Treasury (6.1)U.S. High Yield (3.9)Baa (7.4)A (7.2)AA (5.9)AAA (5.6)Quarter Performance 1.3%2.8%-0.3%-0.4%2.1%-0.8%0.1%-0.6%2.6%-0.6%-1.0%0.0%-0.3%-2.0%-1.0%0.0%1.0%2.0%3.0%Multiverse (6.9)Global Agg x US (7.9)Intermediate Agg (4.3)Aggregate (6.0)U.S. TIPS (4.9)U.S. Corporate IG (7.3)U.S. Mortgage (5.1)U.S. Treasury (6.1)U.S. High Yield (3.9)Baa (7.4)A (7.2)AA (5.9)AAA (5.6)1-Year Performance8 Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)The Market EnvironmentMarket Rate & Yield Curve ComparisonAs of June 30, 2018Relative to their domestic counterparts, global fixed income indices underperformed during the quarter. The relatively high duration of these indices acted as a headwind to performance in the current quarter as interest rates increased. The returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. Duringthe 2nd quarter the USD strengthened against most other currencies, negatively impacting the returns on global bond indices. The return on global bonds, as represented by the Bloomberg Barclays Global Aggregate ex US Index, was -4.8% for the quarter. However, when viewed over the trailing year, global issues have outperformed domestic securities, returning 2.8%. As the global economy continues to recover, several international central banks have started to move toward less accommodative postures. Notably, the ECB, is planning to slow its monthly bond purchase program in September, reducing new purchases to 15 billion euro per month from 30 billion euro per month, as well as forecasting an end to the program by the end of the year assuming the eurozone recovery continues to flourish. However, they have indicated a continuation of reinvestment in maturing securities and would likely not raise interest rates from current levels until summer 2019. In contrast, the Bankof Japan will continue current stimulus programs and the Bank of England backed away from a telegraphed interest rate hike after disappointing economic data led them to lower their forecasts for future growth.Much of the index performance detailed in the bar graphs on the previous page 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 Treasury yield (green line) rose significantly during the first half of the 2nd quarter, rising to a near-term high of 3.11% before falling to 2.87% to end the period. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread). This measure quantifies the additional yield premium that investors require to purchase and hold non-Treasury issues. This line illustrates a steady increase in credit spreads through the first two quarters of 2018. This increase is equivalent to an interest rate increase on corporate bonds, which producesan additional headwind for corporate bond index returns. These credit spreads have widened by about 17 basis points over the last 3-months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate (three in the last twelve months) due to the continued unwinding of accommodative US monetary policy.The lower graph provides a snapshot of the USTreasury yield curve at the end of each of the last four calendar quarters. As mentioned, the yield curve continues to flatten as yields on shorter-term maturities have risen more than interest rates on the long end of the curve. The upward momentum of interest rates as well as a general flattening of the yield curve are clearly visible over both the 2nd quarter and the last twelve months. 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 Curve9/30/201712/31/20173/31/20186/30/20180.000.501.001.502.002.503.003.50Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-181-Year Trailing Market RatesFed Funds RateTED Spread3-Month LiborBAA OAS10yr Treasury10yr TIPS9 Asset Allocation By Segment as of March 31, 2018 : $4,067,783 Asset Allocation By Segment as of June 30, 2018 : $4,121,475 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¢ Allocation Segments Market Value Allocation Domestic Equity 2,011,601 48.8¢ International Equity 611,377 14.8¢ Fixed Income 1,455,969 35.3¢ Cash Equivalent 42,527 1.0¢ Asset Allocation Summary Total Fund As of June 30, 2018 NONE 10 Asset Allocation By Manager as of March 31, 2018 : $4,067,783 Asset Allocation By Manager as of June 30, 2018 : $4,121,475 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¢ Allocation Market Value Allocation Dodge & Cox Income Fund (DODIX)1,455,969 35.3¢ Vanguard Index 500 Admiral (VFIAX)663,649 16.1¢ Vanguard Extended Mkt Index (VEXAX)662,161 16.1¢ American Funds EuroPacific Gr R6 (RERGX) 611,377 14.8¢ MFS Growth Fund (MFEKX)380,467 9.2¢ Becker Value Equity Fund (BVEIX)305,324 7.4¢ R&D 42,527 1.0¢ Asset Allocation Summary Total Fund As of June 30, 2018 NONE 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 $42,527.3 (1.0%) Total Fixed Income Composite $1,455,969.0 (35.3%) Total International Equity Composite $611,377.5 (14.8%) Total Domestic Equity Composite $2,011,600.9 (48.8%) 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 4,121,475 100.0 N/A N/A 100.0 --- Total Domestic Equity Composite 2,011,601 48.8 40.0 50.0 45.0 -363,011 49,136 -156,937 Total International Equity Composite 611,377 14.8 10.0 20.0 15.0 -199,230 212,917 6,844 Total Fixed Income Composite 1,455,969 35.3 30.0 50.0 40.0 -219,527 604,768 192,621 R&D 42,527 1.0 0.0 0.0 0.0 -42,527 -42,527 -42,527 Okeechobee Municipal Firefighters' Pension Fund Asset Allocation Compliance As of June 30, 2018 12 Financial Reconciliation Quarter to Date Market Value 04/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 06/30/2018 Total Equity Composite 2,554,615 ----- 25,388 42,976 2,622,978 Vanguard Extended Mkt Index (VEXAX)624,791 -----2,074 35,296 662,161 Vanguard Index 500 Admiral (VFIAX)641,687 -----3,069 18,893 663,649 MFS Growth Fund (MFEKX)356,977 -----1,708 21,781 380,467 Becker Value Equity Fund (BVEIX)302,013 ------3,312 305,324 American Funds EuroPacific Gr R6 (RERGX) 629,146 ----- 18,537 -36,306 611,377 Total Fixed Income Composite 1,460,819 ----- 10,272 -15,123 1,455,969 Dodge & Cox Income Fund (DODIX)1,460,819 ----- 10,272 -15,123 1,455,969 R&D 52,349 -34,017 -26,776 --17,265 203 -42,527 Total Fund Composite 4,067,783 -34,017 -26,776 --17,265 35,863 27,853 4,121,475 Financial Reconciliation Total Fund 1 Quarter Ending June 30, 2018 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 06/30/2018 Total Equity Composite 2,407,781 -----77,566 137,631 2,622,978 Dana Large Cap Core --------- Vanguard Extended Mkt Index (VEXAX)595,142 -----6,865 60,154 662,161 Vanguard Index 500 Admiral (VFIAX)606,403 -----9,035 48,211 663,649 MFS Growth Fund (MFEKX)318,580 -----9,959 51,928 380,467 Becker Value Equity Fund (BVEIX)290,198 -----15,165 -39 305,324 American Funds EuroPacific Gr R6 (RERGX) 597,458 -----36,542 -22,623 611,377 Total Fixed Income Composite 1,426,614 40,467 ----35,753 -46,865 1,455,969 Dodge & Cox Income Fund (DODIX)1,426,614 40,467 ----35,753 -46,865 1,455,969 R&D 76,206 -40,467 146,395 -87,749 --52,386 528 -42,527 Total Fund Composite 3,910,601 - 146,395 -87,749 --52,386 113,848 90,766 4,121,475 Financial Reconciliation Total Fund October 1, 2017 To June 30, 2018 14 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite (Gross)1.56 (36)5.20 (35)8.95 (39)6.53 (67)8.41 (39)5.64 (58)10/01/2007 Total Fund Policy 1.32 (46)4.10 (74)7.56 (74)6.82 (54)7.82 (63)5.56 (63) Difference 0.24 1.10 1.39 -0.29 0.59 0.08 All Public Plans-Total Fund Median 1.22 4.78 8.52 6.91 8.16 5.81 Total Fund Composite (Net)1.56 5.20 8.95 6.41 8.22 6.57 01/01/2003 Total Fund Policy 1.32 4.10 7.56 6.82 7.82 6.92 Difference 0.24 1.10 1.39 -0.41 0.40 -0.35 Total Equity Composite 2.68 8.94 14.47 9.06 11.57 8.65 01/01/2003 Total Equity Policy 2.82 8.33 13.59 10.58 12.24 9.42 Difference -0.14 0.61 0.88 -1.52 -0.67 -0.77 Total Domestic Equity Composite 4.47 11.12 16.11 9.85 12.48 8.93 01/01/2003 Total Domestic Equtiy Policy 3.89 9.76 14.78 11.58 13.29 10.13 Difference 0.58 1.36 1.33 -1.73 -0.81 -1.20 Becker Value Equity Fund (BVEIX)1.10 (57)5.21 (34)8.29 (49)N/A N/A 6.37 (63)03/01/2017 Russell 1000 Value Index 1.18 (55)3.54 (66)6.77 (69)8.26 (44)10.34 (37)5.28 (79) Difference -0.08 1.67 1.52 N/A N/A 1.09 IM U.S. Large Cap Value Equity (MF) Median 1.30 4.17 8.20 8.09 9.99 7.34 Vanguard Index 500 Admiral (VFIAX)3.42 (26)9.44 (31)14.34 (32)N/A N/A 13.21 (35)03/01/2017 S&P 500 Index 3.43 (25)9.47 (30)14.37 (31)11.93 (13)13.42 (13)13.25 (34) Difference -0.01 -0.03 -0.03 N/A N/A -0.04 IM U.S. Large Cap Core Equity (MF) Median 2.80 8.22 13.02 10.20 12.06 12.08 MFS Growth Fund (MFEKX)6.58 (28)19.43 (19)25.47 (28)N/A N/A 25.77 (23)03/01/2017 Russell 1000 Growth Index 5.76 (50)15.69 (55)22.51 (47)14.98 (22)16.36 (28)21.55 (53) Difference 0.82 3.74 2.96 N/A N/A 4.22 IM U.S. Large Cap Growth Equity (MF) Median 5.74 16.20 22.27 13.49 15.46 21.88 Vanguard Extended Mkt Index (VEXAX)5.98 (47)11.26 (21)16.78 (24)10.34 (33)N/A 9.67 (21)01/01/2014 S&P Completion Index 5.94 (48)11.20 (22)16.72 (25)10.23 (36)12.53 (20)9.58 (23) Difference 0.04 0.06 0.06 0.11 N/A 0.09 IM U.S. SMID Cap Core Equity (MF) Median 5.81 9.10 13.93 9.56 11.28 8.30 Comparative Performance Total Fund As of June 30, 2018 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 15 Comparative Performance Total Fund As of June 30, 2018 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total International Equity Composite -2.82 2.33 9.35 6.51 N/A 5.36 01/01/2014 Total International Equity Policy -2.39 1.45 7.79 5.56 6.48 3.85 Difference -0.43 0.88 1.56 0.95 N/A 1.51 American Funds EuroPacific Gr R6 (RERGX)-2.82 (60)2.33 (38)9.35 (30)6.51 (24)N/A 5.36 (18)01/01/2014 MSCI AC World ex USA -2.39 (53)1.45 (55)7.79 (44)5.56 (43)6.48 (50)3.85 (46) Difference -0.43 0.88 1.56 0.95 N/A 1.51 IM International Large Cap Growth Equity (MF) Median -2.25 1.68 6.99 5.10 6.45 3.67 Total Fixed Income Composite -0.33 -0.75 0.37 2.64 3.01 3.48 01/01/2003 Total Fixed Income Policy -0.16 -1.23 -0.40 1.72 2.27 3.68 Difference -0.17 0.48 0.77 0.92 0.74 -0.20 Dodge & Cox Income Fund (DODIX)-0.33 (64)-0.75 (12)0.37 (8)2.64 (4)3.09 (4)2.50 (4)11/01/2012 Blmbg. Barc. U.S. Aggregate Index -0.16 (30)-1.23 (33)-0.40 (34)1.72 (37)2.27 (40)1.56 (40) Difference -0.17 0.48 0.77 0.92 0.82 0.94 IM U.S. Broad Market Core Fixed Income (MF) Median -0.25 -1.41 -0.59 1.60 2.14 1.44 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 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 (23)-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 9.66 -0.53 10.18 12.50 17.96 0.29 9.87 1.75 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 (41)-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 18.74 13.17 0.02 19.25 20.70 29.70 1.16 9.50 -5.78 Vanguard Extended Mkt Index (VEXAX)19.00 (42)13.44 (51)-0.21 (59)N/A N/A N/A N/A N/A N/A S&P Completion Index 18.91 (43)13.26 (53)-0.27 (59)9.66 (21)31.34 (28)30.37 (37)-2.06 (32)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 18.32 13.47 0.48 6.69 29.23 29.03 -3.64 13.97 -6.30 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 (44)15.43 (16)-0.61 (27)19.73 (17)19.34 (61)30.20 (24)1.14 (24)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 18.28 12.74 -1.85 17.32 20.01 28.03 -1.12 8.29 -5.64 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 (26)13.76 (16)3.17 (41)19.15 (22)19.27 (53)29.19 (34)3.78 (18)12.65 (25)-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 20.01 10.74 2.60 16.83 19.44 27.20 0.48 10.24 -2.59 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 (74)16.19 (18)-4.42 (39)18.89 (19)22.30 (54)30.92 (13)-1.89 (26)8.90 (27)-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 16.87 12.39 -5.12 17.29 22.54 28.40 -3.67 6.83 -7.28 Comparative Performance Total Fund As of June 30, 2018 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 17 Comparative Performance Total Fund As of June 30, 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 (9)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 (18)9.80 (28)-11.78 (92)5.22 (32)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 17.53 7.64 -5.68 4.49 17.83 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. 18 Comparative Performance Total Fund As of June 30, 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 (64)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 0.48 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 (64)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 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 0.48 5.21 1.87 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 (80)2.94 (59)3.96 (81)-1.68 (80)5.16 (91)5.26 (49)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 0.63 5.66 3.02 4.50 -1.24 6.66 5.26 9.27 12.29 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 19 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 6.53 6.51 0.91 101.40 11 108.22 1 Index 6.82 6.15 1.00 100.00 10 100.00 2 90 Day U.S. Treasury Bill 0.64 0.17 N/A 4.14 11 -2.91 1 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 8.41 6.52 1.21 106.20 17 104.24 3 Index 7.82 5.96 1.23 100.00 16 100.00 4 90 Day U.S. Treasury Bill 0.40 0.16 N/A 2.39 19 -1.93 1 Risk and Return 3 Years Investment Index 6.4 6.5 6.6 6.7 6.8 6.9 Return (%)6.0 6.1 6.2 6.3 6.4 6.5 6.6 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 7.6 7.8 8.0 8.2 8.4 8.6 Return (%)5.8 5.9 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0Return Percentile Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)3 (15%)13 (65%)4 (20%)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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)1 (5%)8 (40%)11 (55%)¾ Index 20 0 (0%)3 (15%)17 (85%)0 (0%)¾ Strategy Review Total Fund Composite | Total Fund Policy As of June 30, 2018 20 Peer Group Analysis - All Public Plans-Total Fund -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 1.56 (36)5.20 (35)8.95 (39)10.52 (45)6.53 (67)5.76 (62)8.41 (39) Index 1.32 (46)4.10 (74)7.56 (74)9.29 (77)6.82 (54)5.95 (53)7.82 (63) Median 1.22 4.78 8.52 10.34 6.91 6.01 8.16 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 (53)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 (53) Median 12.18 9.65 -0.50 10.18 12.49 17.92 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment 0.01 (29)3.57 (63)3.56 (40)3.17 (34)3.87 (79)1.09 (38) Index -0.97 (90)3.75 (50)3.33 (62)2.83 (61)4.09 (69)0.53 (62) Median -0.28 3.74 3.45 2.98 4.40 0.85 Strategy Review Total Fund Composite | Total Fund Policy As of June 30, 2018 21 Peer Group Analysis - IM U.S. Large Cap Value Equity (MF) -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 1.10 (57)5.21 (34)8.29 (49)N/A N/A N/A N/A Index 1.18 (55)3.54 (66)6.77 (69)11.06 (72)8.26 (44)7.21 (46)10.34 (37) Median 1.30 4.17 8.20 12.54 8.09 7.05 9.99 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 (74)16.19 (18)-4.42 (39)18.89 (19)22.30 (54)30.92 (13) Median 16.87 12.39 -5.12 17.29 22.54 28.40 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment -2.05 (29)6.24 (41)2.92 (76)0.97 (84)N/A N/A Index -2.83 (61)5.33 (62)3.11 (71)1.34 (72)3.27 (68)6.68 (57) Median -2.50 5.79 3.75 2.11 3.66 6.84 Strategy Review Becker Value Equity Fund (BVEIX) | Russell 1000 Value Index As of June 30, 2018 22 Peer Group Analysis - IM U.S. Large Cap Core Equity (MF) -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 3.42 (26)9.44 (31)14.34 (32)N/A N/A N/A N/A Index 3.43 (25)9.47 (30)14.37 (31)16.12 (36)11.93 (13)10.79 (15)13.42 (13) Median 2.80 8.22 13.02 15.17 10.20 9.25 12.06 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 (44)15.43 (16)-0.61 (27)19.73 (17)19.34 (61)30.20 (24) Median 18.28 12.74 -1.85 17.32 20.01 28.03 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment -0.77 (43)6.64 (39)4.48 (45)3.07 (47)N/A N/A Index -0.76 (42)6.64 (39)4.48 (44)3.09 (46)6.07 (37)3.82 (45) Median -1.12 6.42 4.37 3.01 5.73 3.66 Strategy Review Vanguard Index 500 Admiral (VFIAX) | S&P 500 Index As of June 30, 2018 23 Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) -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 6.58 (28)19.43 (19)25.47 (28)N/A N/A N/A N/A Index 5.76 (50)15.69 (55)22.51 (47)21.46 (46)14.98 (22)13.85 (26)16.36 (28) Median 5.74 16.20 22.27 21.31 13.49 12.74 15.46 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 (26)13.76 (16)3.17 (41)19.15 (22)19.27 (53)29.19 (34) Median 20.01 10.74 2.60 16.83 19.44 27.20 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment 5.21 (16)6.51 (55)5.06 (62)6.70 (20)N/A N/A Index 1.42 (78)7.86 (9)5.90 (36)4.67 (68)8.91 (60)1.01 (15) Median 2.84 6.64 5.51 5.33 9.38 -1.20 Strategy Review MFS Growth Fund (MFEKX) | Russell 1000 Growth Index As of June 30, 2018 24 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.34 12.11 0.83 100.42 10 99.88 2 Index 10.23 12.10 0.82 100.00 10 100.00 2 90 Day U.S. Treasury Bill 0.64 0.17 N/A 2.46 11 -1.06 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 12.53 11.95 1.02 100.00 16 100.00 4 90 Day U.S. Treasury Bill 0.40 0.16 N/A 1.36 19 -0.74 1 Risk and Return 3 Years Investment Index 10.2 10.3 10.4 Return (%)12.0 12.1 12.2 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 12.5 12.6 Return (%)11.9 12.0 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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 7 0 (0%)5 (71%)2 (29%)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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 0 0 0 0 0¾ Index 20 14 (70%)6 (30%)0 (0%)0 (0%)¾ Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of June 30, 2018 25 Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF) -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 23.0 26.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 5.98 (47)11.26 (21)16.78 (24)19.17 (26)10.34 (33)9.30 (29)N/A Index 5.94 (48)11.20 (22)16.72 (25)19.08 (27)10.23 (36)9.20 (32)12.53 (20) Median 5.81 9.10 13.93 16.98 9.56 8.30 11.28 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 (51)-0.21 (59)N/A N/A N/A Index 18.91 (43)13.26 (53)-0.27 (59)9.66 (21)31.34 (28)30.37 (37) Median 18.32 13.47 0.48 6.69 29.23 29.03 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment 0.15 (20)4.82 (30)4.96 (45)2.67 (21)4.56 (9)5.61 (95) Index 0.12 (21)4.84 (30)4.96 (45)2.64 (21)4.57 (8)5.55 (95) Median -1.02 3.78 4.76 1.58 2.16 9.12 Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of June 30, 2018 26 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 6.51 11.25 0.56 94.63 7 86.44 5 Index 5.56 12.02 0.46 100.00 6 100.00 6 90 Day U.S. Treasury Bill 0.64 0.17 N/A 2.10 11 -1.61 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 6.48 11.56 0.57 100.00 12 100.00 8 90 Day U.S. Treasury Bill 0.40 0.16 N/A 1.31 19 -1.11 1 Risk and Return 3 Years Investment Index 5.4 5.7 6.0 6.3 6.6 6.9 Return (%)11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 12.0 12.1 12.2 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 6.4 6.5 Return (%)11.5 11.6 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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 7 7 (100%)0 (0%)0 (0%)0 (0%)¾ Index 20 0 (0%)4 (20%)10 (50%)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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 0 0 0 0 0¾ Index 20 0 (0%)4 (20%)9 (45%)7 (35%)¾ Strategy Review American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA As of June 30, 2018 27 Peer Group Analysis - IM International Large Cap Growth Equity (MF) -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment -2.82 (60)2.33 (38)9.35 (30)15.59 (11)6.51 (24)5.10 (14)N/A Index -2.39 (53)1.45 (55)7.79 (44)14.20 (33)5.56 (43)2.86 (64)6.48 (50) Median -2.25 1.68 6.99 11.79 5.10 3.64 6.45 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 (9)8.52 (37)-4.93 (34)N/A N/A N/A Index 20.15 (18)9.80 (28)-11.78 (92)5.22 (32)16.98 (59)15.04 (75) Median 17.53 7.64 -5.68 4.49 17.83 17.70 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment 1.03 (14)4.23 (40)6.86 (23)7.69 (26)9.37 (23)-4.15 (47) Index -1.08 (61)5.06 (13)6.25 (36)5.99 (84)7.98 (57)-1.20 (4) Median -0.68 4.07 5.12 6.99 8.18 -4.20 Strategy Review American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA As of June 30, 2018 28 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 2.64 2.47 0.80 94.35 8 55.78 4 Index 1.72 2.61 0.42 100.00 8 100.00 4 90 Day U.S. Treasury Bill 0.64 0.17 N/A 8.06 11 -11.34 1 Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.09 2.37 1.12 92.40 14 55.07 6 Index 2.27 2.68 0.70 100.00 14 100.00 6 90 Day U.S. Treasury Bill 0.40 0.16 N/A 4.46 19 -7.03 1 Risk and Return 3 Years Investment Index 1.5 1.8 2.1 2.4 2.7 3.0 Return (%)2.4 2.5 2.6 2.7 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 2.4 2.7 3.0 3.3 3.6 Return (%)2.3 2.4 2.5 2.6 2.7 2.8 2.9 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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 11 10 (91%)1 (9%)0 (0%)0 (0%)¾ Index 20 3 (15%)9 (45%)8 (40%)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 Rank9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 3 3 (100%)0 (0%)0 (0%)0 (0%)¾ Index 20 0 (0%)8 (40%)9 (45%)3 (15%)¾ Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of June 30, 2018 29 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF) -2.4 -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment -0.33 (64)-0.75 (12)0.37 (8)1.79 (4)2.64 (4)2.22 (7)3.09 (4) Index -0.16 (30)-1.23 (33)-0.40 (34)-0.36 (62)1.72 (37)1.75 (27)2.27 (40) Median -0.25 -1.41 -0.59 -0.14 1.60 1.50 2.14 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 (64)5.19 (51)2.94 (8)3.96 (59)-1.68 (53)5.16 (81) Median 0.48 5.21 1.87 4.19 -1.62 6.79 Comparative Performance 1 Qtr Ending Mar-2018 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 Investment -0.90 (7)0.48 (23)1.13 (8)1.50 (44)1.19 (17)-1.24 (3) Index -1.46 (46)0.39 (39)0.85 (42)1.45 (53)0.82 (69)-2.98 (71) Median -1.48 0.34 0.81 1.46 0.94 -2.71 Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of June 30, 2018 30 Comparative Performance 1 YR 3 YR 5 YR 7 YR 10 YR 15 YR Becker Value Eq;Inst (BVEIX)8.29 (49)7.73 (58)10.81 (23)N/A N/A N/A Russell 1000 Value Index 6.77 (69)8.26 (44)10.34 (37)11.27 (27)8.49 (36)8.63 (32) Difference 1.52 -0.53 0.47 N/A N/A N/A IM U.S. Large Cap Value Equity (MF) Median 8.20 8.09 9.99 10.47 7.89 8.17 Vanguard 500 Index;Adm (VFIAX)14.34 (10)11.89 (6)13.38 (4)13.20 (6)10.16 (3)9.28 (5) S&P 500 Index 14.37 (3)11.93 (1)13.42 (1)13.23 (1)10.17 (2)9.30 (2) Difference -0.03 -0.04 -0.04 -0.03 -0.01 -0.02 IM S&P 500 Index (MF) Median 14.00 11.48 12.95 12.72 9.68 8.95 MFS Growth;R6 (MFEKX)25.47 (28)15.99 (10)16.71 (22)N/A N/A N/A Russell 1000 Growth Index 22.51 (47)14.98 (22)16.36 (28)14.88 (18)11.83 (20)10.30 (30) Difference 2.96 1.01 0.35 N/A N/A N/A IM U.S. Large Cap Growth Equity (MF) Median 22.27 13.49 15.46 13.59 10.45 9.61 Vanguard Ext Mk Id;Adm (VEXAX)16.78 (24)10.34 (33)12.63 (18)12.12 (15)10.77 (24)11.25 (13) S&P Completion Index 16.72 (25)10.23 (36)12.53 (20)12.03 (18)10.66 (27)N/A Difference 0.06 0.11 0.10 0.09 0.11 N/A IM U.S. SMID Cap Core Equity (MF) Median 13.93 9.56 11.28 10.65 9.92 10.17 American Funds EuPc;A (AEPGX)9.00 (35)6.15 (29)7.97 (13)5.71 (22)4.50 (16)9.03 (12) MSCI AC World ex USA 7.79 (44)5.56 (43)6.48 (50)4.28 (68)3.01 (70)8.21 (48) Difference 1.21 0.59 1.49 1.43 1.49 0.82 IM International Large Cap Growth Equity (MF) Median 6.99 5.10 6.45 4.90 3.55 8.18 Dodge & Cox Income (DODIX)0.37 (8)2.64 (4)3.09 (5)3.35 (7)4.86 (4)4.40 (5) Blmbg. Barc. U.S. Aggregate Index -0.40 (34)1.72 (37)2.27 (40)2.57 (47)3.72 (54)3.77 (38) Difference 0.77 0.92 0.82 0.78 1.14 0.63 IM U.S. Broad Market Core Fixed Income (MF) Median -0.59 1.60 2.14 2.53 3.79 3.60 Comparative Performance Manager Composite Performance Comparison As of June 30, 2018 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 31 Estimated Annual Fee (%) Market Value ($) Estimated Annual Fee ($) Fee Schedule Becker Value Equity Fund (BVEIX)0.68 305,324 2,076 0.68 % of Assets Vanguard Index 500 Admiral (VFIAX)0.05 663,649 332 0.05 % of Assets MFS Growth Fund (MFEKX)0.62 380,467 2,359 0.62 % of Assets Vanguard Extended Mkt Index (VEXAX)0.10 662,161 662 0.10 % of Assets Total Domestic Equity Composite 0.27 2,011,601 5,429 American Funds EuroPacific Gr R6 (RERGX)0.49 611,377 2,996 0.49 % of Assets Total International Equity Composite 0.49 611,377 2,996 Dodge & Cox Income Fund (DODIX)0.43 1,455,969 6,261 0.43 % of Assets Total Fixed Income Composite 0.43 1,455,969 6,261 R&D 42,527 - Total Fund Composite 0.36 4,121,475 14,686 Okeechobee Municipal Firefighters' Pension Fund Fee Analysis As of June 30, 2018 32 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 Value6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 $2,586,038 $4,121,475 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending June 30, 2018 33 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 June 30,2018 34 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: 35 Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A Manager Compliance: 36 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. 37 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. 38