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2019-03-31 AndCo (Quarterly Report)<CBDoc TenantId="2" EntityTypeId="3100" EntityId="79" DocumentTypeId="1" EffectiveDate="03/31/2019" Interval="3" Description="Quarterly Report" /> Investment Performance Review Period Ending March 31, 2019 Okeechobee Municipal Firefighters' Pension Fund 1st Quarter 2019 Market Environment1 After a difficult end to 2018, markets rebounded strongly during the 1stquarterof 2019 with higher risk assets posting the greatest returns. Broad internationaland domestic equity markets had double-digit gains during the period asinvestors overlooked signs of weakening global growth in favor of increasedaccommodation in global monetary policy and progress in global tradenegotiations. While muted relative toequities, fixed income returns werealsopositive during the quarter. Within equities, domestic stocks outperformedinternational markets. US markets pushed higher as the US Federal Reserve(Fed) shifted their stance on monetary policy toward a more accommodativeposture, the US and China moved closer to a resolution of their ongoing tradedispute and the partial government shutdown that began in December came toan end. The large cap S&P 500 Index returned 13.6% during the quarter whilethe small cap Russell 2000 Index gained 14.6% for the period. US equityreturns over the 1-year period are positive with the S&P 500 appreciating 9.5%while the Russell 2000 posted a more modest gain of 2.0%.Similar to US markets, international equity investors were encouraged byageneral easing in central bank monetary policy, including new stimulusmeasures in Europe and China, as well as the de-escalation of trade tensionswith the US. Despite the continued softening in global macroeconomic dataand the lack of certainty around Brexit, international equity index returnsfinished the quarter in positive territory with the MSCI ACWI ex US Indexreturning 10.3%. The developed market MSCI EAFE Index and the MSCIEmerging Markets Index had similar performance during the 1stquarterreturning 10.0% and 9.9% respectively. Despite the strong quarter, returnsover the 1-year period remain negative with developed markets falling -3.7%,outperforming emerging markets which fell -7.4%.Fixed income securities underperformed equities to start 2019 with the broadmarket Bloomberg Barclays Aggregate Index returning 2.9%. Interest ratesfellfor all maturities across the US Treasury Yield Curve as Fed guidancesignaled a pause in monetary policy tightening through 2019. Interest rates inthe middle of the curve saw the greatest declines causing the curve to invertwith shorter-term maturities paying higher interest rates than those in themiddle of the curve. This has historically preceded a recession by 6-24months. Investment grade corporate issues were the best performingsecurities this quarter, outperforming Treasury and securitized issues.TheBloomberg Barclays Corporate IG Index returned 5.1% for the period, ascorporate credit had tailwinds due to its greater interest rate sensitivity, higheryields and tightening credit spreads. Corporate issues also outperformedtheother major fixed income sectors over the 1-year period, returning 4.9% versusa 4.5% return for the Bloomberg Barclays Aggregate Index.Source: Investment MetricsThe Market EnvironmentMajor Market Index PerformanceAs of March 31, 20190.6%5.1%2.2%3.2%2.1%2.9%14.6%16.5%14.0%14.0%13.6%9.9%10.0%10.3%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 ACWxUSQuarter Performance2.1%4.9%4.4%2.7%4.2%4.5%2.0%6.5%9.3%8.8%9.5%-7.4%-3.7%-4.2%-10.0%-5.0%0.0%5.0%10.0%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 March 31, 2019US equity index returns were strongly positive across the style and capitalizationspectrum to start the year with all indices posting double digit returns.Macroeconomic data released during the quarter was mixed with disappointingdata released late in the quarter for GDP and employment being particularlynotable. Even though earnings reported during the period were viewedfavorably, many companies provided negative forward earnings guidance due toslowing global growth, trade concerns and the fading effects of US tax reform.However, investor concerns over the economy were overshadowed by positivedevelopments in trade negotiations with China and an accommodative shiftinFed monetary policy. With regards to trade, President Trump delayed theimplementation of new Chinese tariffs scheduled for March 1stciting substantialprogress in ongoing discussions. Stocks also rallied on Fed guidance to putfurther monetary policy tightening on hold as they lowered projections forgrowthand inflation. Lastly, we saw the end of the partial government shutdown thatbegan in December due to a partisan disagreement over funds for theconstruction of a border wall with Mexico. While the spending bill that passeddid not budget for the wall, President Trump declared a national state ofemergency later in the quarter in order to secure the needed funding.During the quarter, mid cap stocks were the best performers while small capstocks outperformed large cap equities across growth, value and core indices.The Russell MidCap Index gained 16.5% during the period versus a 14.6%return for the small cap Russell 2000 Index and a 14.0% gain on the large capRussell 1000 Index. Part of the reason for strength in small cap names is theprojected hold on interest rate increases that occurred over 2018 as smallandmid-cap companies typically maintain higher percentages of debt than theirlarge cap peers. Small and mid-cap companies are usually more domesticallyfocused which will serve as a tailwind in periods where the US economy is onstronger footing than international markets. It is also not unusual for smallermarket cap stocks to outperform in risk-on market environments. When viewedover the most recent 1-year period, large cap stocks outperformed relativetosmall cap stocks. The Russell 1000 returned 9.3% for the year while the Russell2000 gained only 2.0%.Growth indices outperformed value indices across the market cap spectrumduring the 1stquarter. Growth stocks have outperformed value in all but onequarter over the last two years.The Russell MidCap Growth Index was the bestperforming style index for the period, returning 19.6% for the quarter. The largecap and small cap value indices had the lowest relative returns, both gaining11.9%. The trend of growth outperformance is also visible over the 1-year periodas growth indices have benefitted from larger exposures to technology whichhas been a large driver of index performance over the last year, as well as ameaningful underweight to financials which has been a relative detractor.17.1%14.6%11.9%19.6%16.5%14.4%16.1%14.0%11.9%16.2%14.0%11.9%0.0%5.0%10.0%15.0%20.0%2000 Growth2000 Index2000 ValueMidCap GrowthMidCap IndexMidCap Value1000 Growth1000 Index1000 Value3000 Growth3000 Index3000 ValueQuarter Performance - Russell Style Series3.9%2.0%0.2%11.5%6.5%2.9%12.7%9.3%5.7%12.1%8.8%5.3%0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%2000 Growth2000 Index2000 ValueMidCap GrowthMidCap IndexMidCap Value1000 Growth1000 Index1000 Value3000 Growth3000 Index3000 Value1-Year Performance - Russell Style Series3 Sector performance was broadly positive across large cap sectors for the 1stquarter. There were strong gains for all sectors within the Russell 1000 Indexduring for the period with five sectorsoutpacing the return of the index. Whilethe rally was broad with nine of eleven sectors posting double digit returns,cyclical sectors such as technology, industrials and energy were some of thebest performers through the quarter returning 20.7%, 17.1% and 16.5%respectively. Technology stocks rose on strong earnings and attractivevaluations following their 4thquarter 2018 sell off. Energy companiesbenefitted from a large rebound in oil prices which increased by over 30%during the quarter following an OPEC led supply cut and US sanctions againstIran and Venezuela. Industrial stocks, among others, gained on hopes thattrade tensions between the US and China would continue to abate. REITs alsohad a particularly strong quarter, returning 17.3% as the prospect of lowerinterest rates acted as a tailwind. Financials and health care stocks weretheworst performers during the period returning 8.9% and 7.5% respectively.Health care stocks faced uncertainty around the potential for future regulationfollowing congressional hearings on drug pricing while the prospect of lowerearnings due to a muted interest rate environment weighed on financial stocks.Returns over the 1-year period were positive with nine out of eleven sectorsposting gains, six of which were over 10%. Utilities, REITs and informationtechnology were the best performers returning 20.4%, 20.0% and 18.0%respectively. Financials and materials posted negative results at -4.7%and -1.5% while energy was only slightly positive at 0.8%.Quarterly results for small cap sectors were mixed relative to their largecapitalization counterparts with six of eleven sectors outperforming theircorresponding large cap equivalents. Like large caps, all eleven sectorsproduced gains during the period with six of eleven economic sectorsoutpacing the Russell 2000 Index return for the quarter and nine returningover10.0%. Similar to large caps, cyclical sectors performed well with technology,energy and materials returning 22.7%, 19.9% and 17.1% respectively. Realestate also did well returning 17.5%. The largest detractors over the periodwere consumer staples, financials and utilities which still produced gains of7.2%, 8.5% and 10.5%. Over the trailing 1-year period, returns variedsignificantly with four sectors posting double digit gains and four losing value.Despite a very strong quarter, energy stocks were the worst performers overthe 1-year period, falling a considerable -17.2%, while the defensive utilitiessector produced the greatestgains, appreciating 21.7%.The Market EnvironmentGICS Sector Performance & (Sector Weight)As of March 31, 2019Source: Morningstar DirectAs a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector. 20.4%20.0%-1.5%18.0%2.8%15.5%-4.7%0.8%9.5%11.1%10.2%11.5%17.3%11.1%20.7%17.1%7.5%8.9%16.5%11.8%14.8%14.0%-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%Utilities (3.2%)Real Estate (3.7%)Materials (2.9%)Info Technology (20.5%)Industrials (9.8%)Health Care (14.7%)Financials (13.6%)Energy (5.1%)Consumer Staples (6.8%)Consumer Disc (10.2%)Comm Services (9.5%)Russell 1000Quarter1-Year21.7%13.7%-9.7%15.2%-5.2%2.7%-4.7%-17.2%2.9%2.7%17.6%10.5%17.5%17.1%22.7%12.1%16.8%8.5%19.9%7.2%13.2%15.1%-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%Utilities (3.7%)Real Estate (7.4%)Materials (3.8%)Info Technology (14.9%)Industrials (14.8%)Health Care (15.5%)Financials (18.0%)Energy (3.6%)Consumer Staples (2.8%)Consumer Disc (12.2%)Comm Services (3.3%)Russell 2000Quarter1-Year4 The Market EnvironmentTop 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000As of March 31, 2019Source: Morningstar DirectTop 10 Weighted StocksTop 10 Weighted StocksRussell 1000 Weight1-Qtr Return1-Year ReturnSector Russell 2000 Weight1-Qtr Return1-Year ReturnSectorApple Inc 3.42% 20.9% 14.9% Information Technology Etsy Inc 0.40% 41.3% 139.6% Consumer DiscretionaryMicrosoft Corp 3.39% 16.6% 30.8% Information Technology Five Below Inc 0.33% 21.4% 69.4% Consumer DiscretionaryAmazon.com Inc 2.78% 18.6% 23.0% Consumer Discretionary The Trade Desk Inc A 0.32% 70.6% 298.9% Information TechnologyFacebook Inc A 1.50% 27.2%4.3% Communication Services Integrated Device Technology Inc 0.31% 1.2%60.3% Information TechnologyBerkshire Hathaway Inc B 1.48% -1.6% 0.7% Financials HubSpot Inc 0.30% 32.2% 53.5% Information TechnologyJohnson & Johnson1.42% 9.0% 12.1% Health CarePlanet Fitness Inc A0.30% 28.2% 81.9% Consumer DiscretionaryAlphabet Inc C1.36% 13.3% 13.7% Communication ServicesCree Inc0.29% 33.8% 41.9% Information TechnologyAlphabet Inc A1.33% 12.6% 13.5% Communication ServicesCiena Corp0.26% 10.1% 44.2% Information TechnologyExxon Mobil Corp1.30% 19.8% 12.9% EnergyPrimerica Inc0.26% 25.4% 27.7% FinancialsJPMorgan Chase & Co1.27% 4.6% -5.6% FinancialsArray BioPharma Inc0.25% 71.1% 49.4% Health CareTop 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter)Russell 1000Weight1-Qtr Return1-Year ReturnSectorRussell 2000Weight1-Qtr Return1-Year ReturnSectorVersum Materials Inc0.02% 81.9% 34.7% Information TechnologyImmune Design Corp0.01% 350.0% 77.3% Health CareCoty Inc Class A0.02% 77.3% -34.3%Consumer StaplesDiebold Nixdorf Inc0.04% 344.6% -28.1% Information TechnologyNabors Industries Ltd0.00% 72.5% -48.7% EnergyConstellation Pharmaceuticals Inc 0.01% 237.9% N/A Health CareSage Therapeutics Inc0.03% 66.0% -1.3% Health CareFlotek Industries Inc0.01% 197.2% -46.9% MaterialsWayfair Inc Class A0.03% 64.8% 119.8% Consumer DiscretionarySpark Therapeutics Inc0.18% 191.0% 71.0% Health CareChipotle Mexican Grill Inc Class A 0.07% 64.5% 119.8%Consumer DiscretionaryMagenta Therapeutics Inc0.01% 188.9% N/A Health CareUniversal Display Corp0.02% 63.5%51.7% Information TechnologyION Geophysical Corp0.01% 178.8% -46.7% EnergyXerox Corp0.02% 63.1% 15.7% Information TechnologyCatalyst Pharmaceuticals Inc0.02% 165.6% 113.4% Health CareFloor & Decor Holdings Inc0.01% 59.2% -20.9% Consumer DiscretionaryVirnetX Holding Corp0.02% 163.8%60.3% Information Technologybluebird bio Inc0.03% 58.6% -7.9% Health CareRockwell Medical Inc0.01% 151.8% 9.2% Health CareBottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter)Russell 1000Weight1-Qtr Return1-Year ReturnSectorRussell 2000Weight1-Qtr Return1-Year ReturnSectorUniti Group Inc0.01% -27.8% -23.8% Real EstateZomedica Pharmaceuticals Corp 0.00% -77.0% -84.2% Health CarePG&E Corp0.03% -25.1% -59.5% UtilitiesAptinyx Inc0.00% -75.5% N/A Health CareThe Kraft Heinz Co0.07% -23.2% -45.1% Consumer StaplesAlta Mesa Resources Inc Class A 0.00% -73.5% -96.7% EnergyRealogy Holdings Corp0.01% -21.8% -57.3% Real EstateNovavax Inc0.01% -70.1% -73.8% Health CareNu Skin Enterprises Inc Class A0.01% -21.5% -33.7%Consumer StaplesMaxar Technologies Inc0.01% -66.3% -91.0% IndustrialsBiogen Inc0.18% -21.4% -13.7% Health CareSolid Biosciences Inc0.01% -65.7% 22.7% Health CareCentennial Resource Development A0.01% -20.2% -52.1% EnergyAchaogen Inc0.00% -62.9% -96.5% Health CareCenturyLink Inc0.04% -19.3% -19.0% Communication ServicesEP Energy Corp A0.00% -62.9% -80.6% EnergyQurate Retail Inc Class A0.03% -18.1% -36.5% Consumer DiscretionaryProteostasis Therapeutics Inc0.00% -61.1% -73.5% Health CareMacy's Inc0.03% -18.0% -15.2% Consumer DiscretionaryApproach Resources Inc0.00% -59.4% -86.4% Energy5 Source: MSCI Global Index Monitor (Returns are Net)Broad international equity returns were positive for the quarter in both localcurrency and USD terms. The MSCI ACWI ex US Index gained 10.5% in localcurrency terms and 10.3% in USD terms during the 1stquarter. Similar to USmarkets, international equity investors were encouraged by central bankresponses to slowing global growth as they shifted towards moreaccommodative policies and the improvement in dialogue around global trade.Returns in local currency typically outperformed USD returns in the developedmarkets, as the USD continued to strengthen against most major developedcurrencies. While the currency effect was detrimental in developed markets, itacted as a slight tailwind in emerging markets. The USD strength is particularlynoticeable over the 1-year period where local currency returns on the MSCIACWI ex US Index were 1.9%, but after accounting for foreign exchange,translated to a loss of -4.2% for a USD investor.Fourth quarter results for developed market international indices were positivein both local currency and USD terms with the MSCI EAFE Index returning10.6% and 10.0% respectively. Ongoing weakness in global economicreporting pushed major central banks to move toward less restrictive posturesaround monetary policy. In Europe, the European Central Bank (ECB)announced plans for additional stimuluswhile putting any future interestrateincreases on hold until 2020. The Bank of England (BoE) left policy unchangedas uncertainties around Brexit coincided with a slowing economy. PrimeMinister Theresa May held two votes on her withdrawal plan, both of whichfailed, forcing her to request an extension to the March 29thwithdrawaldeadline. Data from Japan drew concerns that the country’s economy iscontracting as corporate earnings, exports, manufacturing, retail sales andinflation all hinted at an economic slowdown. The MSCI EAFE Index returned2.8% and -3.7% for the last twelve months in local currency and USD termsrespectively.Emerging markets slightly underperformed relative to developed marketsforthe 1stquarter, but still appreciated in both local currency and USD terms withthe MSCI Emerging Markets Index returning 9.8% and 9.9% respectively. Amajor tailwind for equity markets was the improvement in trade relationsbetween the US and China. As Chinese economic data appeared to beslowing, the Chinese government also announced continued stimulus in theform of tax cuts, infrastructure investment and lowered the reserverequirement for banks in order to encourage lending. We also saw commodityprices rise over the quarter which is generally beneficial to emerging marketcountries with rising oil prices helping Russian and Colombian equity returns.In Brazil, President Jair Bolsonaro officially took office. Bolsonaro announcedhis plan to reform the country’s debt laden pension system and promisedmarket friendly economic reforms. One year returns for the MSCI EmergingMarket Index were -1.9% in local currency terms and -7.4% in USD terms.The Market EnvironmentInternational and Regional Market Index Performance (Country Count)As March 31, 20197.5%11.3%4.9%9.8%9.0%11.6%10.6%10.8%10.5%7.9%11.1%5.5%9.9%8.5%10.8%10.0%10.5%10.3%0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%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 Currency5.3%-3.9%3.7%-1.9%0.3%4.4%2.8%3.2%1.9%-6.7%-6.8%-10.6%-7.4%-3.9%-3.6%-3.7%-3.1%-4.2%-12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%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 March 31, 2019Source: Morningstar Direct, MSCI Global Index Monitor (Returns are Net in USD)As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector’s current constituency, post creation of the Communication Services sector. MSCI - EAFESector Weight Quarter Return 1-Year ReturnCommunication Services5.4%4.3%-4.5%Consumer Discretionary11.0%7.5%-10.4%Consumer Staples11.8%12.4%3.3%Energy5.9%10.4%4.6%Financials18.9%6.9%-12.7%Health Care11.3%11.2%7.4%Industrials14.4%10.6%-5.4%Information Technology6.3%15.3%-3.8%Materials7.5%13.2%-3.0%Real Estate3.9%14.0%4.2%Utilities3.7%9.0%8.7%Total100.0%10.0%-3.7%MSCI - ACWIxUSSector Weight Quarter Return 1-Year ReturnCommunication Services7.1%6.9%-1.8%Consumer Discretionary11.1%11.2%-10.3%Consumer Staples9.9%11.2%1.6%Energy7.4%12.4%5.2%Financials21.6%7.7%-9.4%Health Care8.4%11.0%4.4%Industrials11.7%10.2%-4.9%Information Technology8.4%14.7%-7.3%Materials7.6%11.3%-3.6%Real Estate3.5%14.4%2.8%Utilities3.3%8.2%6.1%Total100.0%10.3%-4.2%MSCI - Emerging MktSector WeightQuarter Return 1-Year ReturnCommunication Services12.3%9.5%-3.3%Consumer Discretionary13.4%20.8%-13.2%Consumer Staples6.4%5.3%-8.4%Energy8.1%12.2%9.4%Financials24.2%7.2%-6.0%Health Care2.6%3.6%-23.4%Industrials5.4%4.8%-7.6%Information Technology14.6%12.8%-10.8%Materials7.4%6.9%-6.2%Real Estate3.2%15.6%-2.1%Utilities2.5%4.2%-2.7%Total100.0%9.9%-7.4%MSCI-EAFE MSCI-ACWIxUS Quarter1- YearCountryWeightWeightReturnReturnJapan24.0%16.1%6.7%-7.8%United Kingdom17.1%11.5%11.9%-0.1%France11.3%7.6%10.7%-3.7%Switzerland8.9%6.0%13.1%7.5%Germany8.6%5.8%6.9%-13.7%Australia6.9%4.7%11.4%4.5%Hong Kong4.1%2.8%15.6%8.0%Netherlands3.6%2.4%13.6%-2.3%Spain3.0%2.0%7.0%-8.8%Sweden2.6%1.8%7.4%-5.1%Italy2.4%1.6%14.6%-10.6%Denmark1.8%1.2%12.8%-3.2%Singapore1.3%0.9%6.2%-6.4%Finland1.0%0.7%8.0%-3.6%Belgium1.0%0.7%16.2%-15.5%Norway0.7%0.5%7.0%-4.4%Ireland0.5%0.4%11.4%-11.6%Israel0.5%0.4%10.1%9.9%Austria0.2%0.2%8.4%-23.0%New Zealand0.2%0.2%16.7%18.1%Portugal0.2%0.1%10.2%-4.9%Total EAFE Countries100.0%67.1%10.0%-3.7%Canada6.8%15.4%3.1%Total Developed Countries73.9%10.5%-3.1%China8.6%17.7%-6.2%Korea3.4%4.9%-16.7%Taiwan3.0%9.0%-6.1%India2.4%7.2%6.8%Brazil1.9%8.1%-4.2%South Africa1.5%4.4%-18.0%Russia1.0%12.2%2.2%Mexico0.7%5.5%-11.7%Thailand0.6%7.4%-6.9%Indonesia0.6%4.3%2.0%Malaysia0.6%0.3%-13.1%Poland0.3%-0.6%-5.7%Philippines0.3%7.9%1.8%Chile0.3%4.1%-17.5%Qatar0.2%-3.5%22.2%United Arab Emirates0.2%8.7%1.3%Turkey0.1%-3.2%-40.3%Colombia0.1%24.8%5.3%Peru0.1%11.0%2.2%Hungary0.1%6.0%0.5%Greece0.1%12.8%-23.6%Czech Republic0.0%3.8%-6.8%Egypt0.0%15.8%-10.2%Pakistan0.0%8.3%-36.6%Total Emerging Countries26.1%9.9%-7.4%Total ACWIxUS Countries100.0%10.3%-4.2%7 Source: BloombergThe Market EnvironmentDomestic Bond Sector & Broad/Global Bond Market Performance (Duration)As of March 31, 2019Broad fixed income benchmarks were positive to start 2019. Following the late2018 market volatility, the Federal Open Market Committee (FOMC) issueddovish guidance after their January meeting stating that they would be patientin determining future interest rate adjustments. The FOMC also commentedonthe ongoing balance sheet reduction program, stating that they would be opento changes to the program if market conditions warranted them. Later inMarch, Fed Chair Jerome Powell communicated that the FOMC is no longerprojecting any further interest rate increases through 2019. He also stated thatthey would begin tapering the roll off from the balance sheet reductionprogram in May with a plan to halt the program entirely in September. Thestoppage of the balance sheet reductionprogram represents an easing ofmonetary policy. Interest rates fell across all maturities on the US TreasuryYield Curve with the greatest declines occurring in the mid- and long-termissues. This caused continued inversion in the yield curve with short-termmaturities paying higher interest rates than issues in the mid- to long-endofthe curve. The difference in yields between the 2-year and 10-year Treasurynow sits at just 0.14% with the 30-day T-Bill yielding more than the 10-yearbond by 0.02%. Historically, an inverted yield curve has been a leadingindicator of a recession in the next 6-24 months. The bellwether BloombergBarclays US Aggregate Index posted positive returns for both the 1stquarterand the 1-year period, returning 2.9% and 4.5% respectively.Within investment grade credit, lower quality issues outperformed higherquality issues as investors gravitated toward higher risk securities during thequarter. Lower quality issues also benefitted from their higher durations. On anabsolute basis, without negating the duration differences in the sub-indices,Baa rated credit was the best performing investment grade credit qualitysegment returning 5.8% for the quarter, while AAA was the worst performing,returning 2.2%. Despite their relatively low durations, high yield securitiesposted very strong returns for the quarter, gaining 7.3%, as spreads tightenedby 135 basis points on these issues. When viewed over the 1-year period,returns for the various quality segments generally show lower quality securitiesoutperforming higher quality issues by a small margin.During the 1stquarter, investment grade corporates outperformed the moredefensive Treasury and mortgage backed sectors of the Bloomberg BarclaysUS Aggregate Index’s three broad sectors. Investment grade corporate creditreturned 5.1%, as the drop in interest rates benefitted these securities toagreater degree and credit spreads tightened considerably since the end of2018. This quarter’s performance carried through to the 1-year period ascorporate credit outperformed both Treasuries and mortgage backedsecurities. Corporate issues returned4.9% versus a 4.4% return for mortgagesand 4.2% gain on Treasury securities.2.4%1.5%2.3%2.9%3.2%5.1%2.2%2.1%7.3%5.8%4.6%3.4%2.2%0.0%2.0%4.0%6.0%8.0%Multiverse (6.9)Global Agg x US (8.1)Intermediate Agg (4.0)Aggregate (5.8)U.S. TIPS (5.2)U.S. Corporate IG (7.4)U.S. Mortgage (4.0)U.S. Treasury (6.2)U.S. High Yield (3.4)Baa (7.5)A (7.4)AA (6.2)AAA (5.3)Quarter Performance -0.3%-4.1%4.3%4.5%2.7%4.9%4.4%4.2%5.9%5.0%4.8%4.9%4.3%-5.0% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0%Multiverse (6.9)Global Agg x US (8.1)Intermediate Agg (4.0)Aggregate (5.8)U.S. TIPS (5.2)U.S. Corporate IG (7.4)U.S. Mortgage (4.0)U.S. Treasury (6.2)U.S. High Yield (3.4)Baa (7.5)A (7.4)AA (6.2)AAA (5.3)1-Year Performance8 Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)The Market EnvironmentMarket Rate & Yield Curve ComparisonAs of March 31, 2019Global fixed income indices continue to struggle relative to their domesticcounterparts, underperforming during the 1stquarter. These indices havelower, or in some cases (Germany, Japan), negative yields and the returns ofthese indices are also significantlyinfluenced by fluctuations in their currencydenomination relative to the USD. The USD has appreciated against mostother developed currencies, negatively impacting the returns on global bondindices. The return on global bonds, as represented by the BloombergBarclays Global Aggregate ex US Index, was 1.5% and -4.1% for the quarterand 1-year period respectively. As global growth has shown signs of stalling,several international central banks have started to step back from morerestrictive postures. Notably, the ECB announced a program to extend loanstoEuropean banks in an effort to increase lending and pledged to keep interestrates steady through the end of 2019. China also announced new stimulus tohelp spur its economy. The Bank of England and the Bank of Japan made nomajor policy changes during the quarter as they continue to reviewmacroeconomic data within their respective countries.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) fell from recent high’s greater than 3.0%, to yields below2.5% to end the first quarter. The blue line illustrates changes in the BAA OAS(Option Adjusted Spread). This measure quantifies the additional yieldpremium that investors require to purchase and hold non-Treasury issues.Thisline illustrates a relatively tight range in credit spreads throughout most of2018, but highlights an abrupt increase during the 4thquarter of 2018 asinvestors moved to higher quality assets during the quarter’s risk-offenvironment. Subsequently, spreads dropped steadily over the 1stquarter of2019. This spread tightening is equivalent to an interest rate decrease oncorporate bonds, which produces an additional tailwind for corporate bondindex returns. These credit spreads have tightened by about 34 basis pointsover the last three months. The green band across the graph illustrates thegradual increase in the Federal Funds Rate due to the tightening of USmonetary policy during 2018. As mentioned, the Fed’s current guidance is forzero rate increases in 2019.The lower graph provides a snapshot of the US Treasury yield curve at the endof each of the last four calendar quarters. The downward shift of interest ratesas well as a general flattening of the yield curve are clearly visible over the lastquarter. As mentioned, the yield curve continues to invert as yields on shorter-term maturities fell less than interest rates in the middle- to long-end ofthecurve.1.001.502.002.503.003.501 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yrTreasury Yield Curve6/30/20189/30/201812/31/20183/31/20190.000.501.001.502.002.503.003.50Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-191-Year Trailing Market RatesFed Funds RateTED Spread3-Month LiborBAA OAS10yr Treasury10yr TIPS9 Asset Allocation By Segment as of December 31, 2018 : $3,843,233 Asset Allocation By Segment as of March 31, 2019 : $4,196,697 Allocation Segments Market Value Allocation Domestic Equity 1,755,914 45.7¢ International Equity 529,889 13.8¢ Fixed Income 1,522,547 39.6¢ Cash Equivalent 34,883 0.9¢ Allocation Segments Market Value Allocation Domestic Equity 2,011,327 47.9¢ International Equity 599,850 14.3¢ Fixed Income 1,523,697 36.3¢ Cash Equivalent 61,823 1.5¢ Asset Allocation Summary Total Fund As of March 31, 2019 NONE 10 Asset Allocation By Manager as of December 31, 2018 : $3,843,233 Asset Allocation By Manager as of March 31, 2019 : $4,196,697 Allocation Market Value Allocation Dodge & Cox Income Fund (DODIX)1,522,547 39.6¢ Vanguard Index 500 Admiral (VFIAX)618,026 16.1¢ Vanguard Extended Mkt Index (VEXAX)565,435 14.7¢ American Funds EuroPacific Gr R6 (RERGX) 529,889 13.8¢ MFS Growth Fund (MFEKX)305,605 8.0¢ Becker Value Equity Fund (BVEIX)266,847 6.9¢ R&D 34,883 0.9¢ Allocation Market Value Allocation Dodge & Cox Income Fund (DODIX)1,523,697 36.3¢ Vanguard Index 500 Admiral (VFIAX)702,361 16.7¢ Vanguard Extended Mkt Index (VEXAX)655,742 15.6¢ American Funds EuroPacific Gr R6 (RERGX) 599,850 14.3¢ MFS Growth Fund (MFEKX)359,915 8.6¢ Becker Value Equity Fund (BVEIX)293,309 7.0¢ R&D 61,823 1.5¢ Asset Allocation Summary Total Fund As of March 31, 2019 NONE 11 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 Value3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 $2,592,599 $4,196,697 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending March 31, 2019 Page 12 12 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 $61,822.8 (1.5%) Total Fixed Income Composite $1,523,697.3 (36.3%) Total International Equity Composite $599,849.6 (14.3%) Total Domestic Equity Composite $2,011,327.1 (47.9%) 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 4,196,697 100.0 N/A N/A 100.0 --- Total Domestic Equity Composite 2,011,327 47.9 40.0 50.0 45.0 -332,648 87,021 -122,814 Total International Equity Composite 599,850 14.3 10.0 20.0 15.0 -180,180 239,490 29,655 Total Fixed Income Composite 1,523,697 36.3 30.0 50.0 40.0 -264,688 574,651 154,981 R&D 61,823 1.5 0.0 0.0 0.0 -61,823 -61,823 -61,823 Okeechobee Municipal Firefighters' Pension Fund Asset Allocation Compliance As of March 31, 2019 13 Financial Reconciliation Quarter to Date Market Value 01/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 03/31/2019 Total Equity Composite 2,285,803 -----5,659 319,715 2,611,177 Vanguard Extended Mkt Index (VEXAX)565,435 -----1,771 88,536 655,742 Vanguard Index 500 Admiral (VFIAX)618,026 -----3,888 80,447 702,361 MFS Growth Fund (MFEKX)305,605 ------54,310 359,915 Becker Value Equity Fund (BVEIX)266,847 ------26,461 293,309 American Funds EuroPacific Gr R6 (RERGX) 529,889 ------69,961 599,850 Total Fixed Income Composite 1,522,547 -54,200 ----12,190 43,160 1,523,697 Dodge & Cox Income Fund (DODIX)1,522,547 -54,200 ----12,190 43,160 1,523,697 R&D 34,883 54,200 26,223 -48,193 --5,460 169 -61,823 Total Fund Composite 3,843,233 - 26,223 -48,193 --5,460 18,018 362,875 4,196,697 Financial Reconciliation Total Fund 1 Quarter Ending March 31, 2019 14 Financial Reconciliation Fiscal Year to Date Market Value 10/01/2018 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 03/31/2019 Total Equity Composite 2,688,828 ----- 61,210 -138,862 2,611,177 Vanguard Extended Mkt Index (VEXAX)691,078 -----4,543 -39,879 655,742 Vanguard Index 500 Admiral (VFIAX)714,747 -----7,291 -19,678 702,361 MFS Growth Fund (MFEKX)360,718 ----- 10,930 -11,733 359,915 Becker Value Equity Fund (BVEIX)316,049 ----- 22,759 -45,498 293,309 American Funds EuroPacific Gr R6 (RERGX) 606,236 ----- 15,687 -22,074 599,850 Total Fixed Income Composite 1,465,249 -1,582 ---- 27,984 32,047 1,523,697 Dodge & Cox Income Fund (DODIX)1,465,249 -1,582 ---- 27,984 32,047 1,523,697 R&D 38,970 1,582 127,138 -78,566 --27,662 361 -61,823 Total Fund Composite 4,193,047 - 127,138 -78,566 --27,662 89,555 -106,815 4,196,697 Financial Reconciliation Total Fund October 1, 2018 To March 31, 2019 15 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite (Gross)9.96 (11)-0.40 (72)4.24 (55)8.50 (55)5.90 (61)5.50 (54)10/01/2007 Total Fund Policy 9.02 (40)0.73 (32)5.44 (17)8.24 (64)6.36 (39)5.55 (50) Difference 0.94 -1.13 -1.20 0.26 -0.46 -0.05 All Public Plans-Total Fund Median 8.73 0.17 4.34 8.59 6.08 5.55 Total Fund Composite (Net)9.96 -0.40 4.24 8.43 5.77 6.42 01/01/2003 Total Fund Policy 9.02 0.73 5.44 8.24 6.36 6.85 Difference 0.94 -1.13 -1.20 0.19 -0.59 -0.43 Total Equity Composite 14.23 -2.89 4.11 11.78 7.72 8.32 01/01/2003 Total Equity Policy 13.50 -2.23 6.59 12.69 9.12 9.21 Difference 0.73 -0.66 -2.48 -0.91 -1.40 -0.89 Total Domestic Equity Composite 14.55 -3.42 6.97 12.54 8.79 8.66 01/01/2003 Total Domestic Equtiy Policy 14.04 -2.27 8.77 13.49 10.36 9.95 Difference 0.51 -1.15 -1.80 -0.95 -1.57 -1.29 Becker Value Equity Fund (BVEIX)9.92 (85)-7.19 (99)-2.88 (100)N/A N/A 2.04 (100)03/01/2017 Russell 1000 Value Index 11.93 (40)-1.19 (22)5.67 (33)10.45 (47)7.72 (32)5.53 (58) Difference -2.01 -6.00 -8.55 N/A N/A -3.49 IM U.S. Large Cap Value Equity (MF) Median 11.56 -2.83 4.23 10.28 7.12 5.85 Vanguard Index 500 Admiral (VFIAX)13.65 (32)-1.73 (38)9.46 (22)N/A N/A 11.25 (28)03/01/2017 S&P 500 Index 13.65 (32)-1.72 (38)9.50 (21)13.51 (22)10.91 (12)11.29 (26) Difference 0.00 -0.01 -0.04 N/A N/A -0.04 IM U.S. Large Cap Core Equity (MF) Median 13.12 -2.35 7.74 12.37 9.37 10.11 MFS Growth Fund (MFEKX)17.77 (11)-0.22 (20)14.95 (17)N/A N/A 20.08 (17)03/01/2017 Russell 1000 Growth Index 16.10 (55)-2.34 (60)12.75 (41)16.53 (42)13.50 (24)16.84 (49) Difference 1.67 2.12 2.20 N/A N/A 3.24 IM U.S. Large Cap Growth Equity (MF) Median 16.26 -1.85 12.03 16.08 12.46 16.68 Vanguard Extended Mkt Index (VEXAX)15.97 (13)-5.11 (15)4.95 (13)13.29 (9)7.86 (15)8.03 (13)01/01/2014 S&P Completion Index 15.99 (13)-5.22 (17)4.76 (14)13.17 (10)7.75 (18)7.93 (15) Difference -0.02 0.11 0.19 0.12 0.11 0.10 IM U.S. SMID Cap Core Equity (MF) Median 14.01 -8.08 0.38 9.97 6.01 5.93 Comparative Performance Total Fund As of March 31, 2019 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 Total Fund As of March 31, 2019 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total International Equity Composite 13.20 -1.05 -4.66 9.33 4.27 4.20 01/01/2014 Total International Equity Policy 10.44 -2.16 -3.74 8.61 3.05 3.02 Difference 2.76 1.11 -0.92 0.72 1.22 1.18 American Funds EuroPacific Gr R6 (RERGX)13.20 (27)-1.05 (34)-4.66 (52)9.33 (19)4.27 (24)4.20 (24)01/01/2014 MSCI AC World ex USA 10.44 (92)-2.16 (50)-3.74 (44)8.61 (32)3.05 (48)3.02 (40) Difference 2.76 1.11 -0.92 0.72 1.22 1.18 IM International Large Cap Growth Equity (MF) Median 12.38 -2.16 -4.57 7.33 2.93 2.54 Total Fixed Income Composite 3.70 3.99 4.31 3.64 3.16 3.61 01/01/2003 Total Fixed Income Policy 2.94 4.63 4.48 2.03 2.74 3.80 Difference 0.76 -0.64 -0.17 1.61 0.42 -0.19 Dodge & Cox Income Fund (DODIX)3.70 (15)4.00 (69)4.31 (34)3.64 (3)3.15 (8)2.93 (4)11/01/2012 Blmbg. Barc. U.S. Aggregate Index 2.94 (72)4.63 (20)4.48 (20)2.03 (57)2.74 (28)2.10 (39) Difference 0.76 -0.63 -0.17 1.61 0.41 0.83 IM U.S. Broad Market Core Fixed Income (MF) Median 3.23 4.28 4.09 2.13 2.49 1.98 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 Fiscal Year Returns Oct-2017 To Sep-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 Fund Composite (Gross)8.40 (32)12.18 (48)8.47 (81)-0.63 (47)12.18 (6)8.60 (88)18.27 (35)-1.69 (89)11.01 (30)1.69 (47) Total Fund Policy 7.54 (51)11.19 (66)10.43 (25)-0.74 (50)10.33 (43)10.28 (79)17.77 (48)2.00 (24)9.68 (65)0.48 (64) Difference 0.86 0.99 -1.96 0.11 1.85 -1.68 0.50 -3.69 1.33 1.21 All Public Plans-Total Fund Median 7.59 12.01 9.72 -0.78 9.83 12.45 17.45 0.50 10.23 1.33 Total Fund Composite (Net)8.40 11.97 8.36 -0.82 11.85 8.19 17.72 -2.18 10.40 1.33 Total Fund Policy 7.54 11.19 10.43 -0.74 10.33 10.28 17.77 2.00 9.68 0.48 Difference 0.86 0.78 -2.07 -0.08 1.52 -2.09 -0.05 -4.18 0.72 0.85 Total Equity Composite 13.75 18.99 9.70 -1.20 15.22 13.59 26.76 -3.31 14.20 -5.06 Total Equity Policy 13.62 19.14 13.68 -3.37 14.58 18.84 26.35 -0.48 10.16 -6.91 Difference 0.13 -0.15 -3.98 2.17 0.64 -5.25 0.41 -2.83 4.04 1.85 Total Domestic Equity Composite 17.80 18.44 10.04 -0.01 16.46 13.59 26.76 -3.31 14.20 -5.06 Total Domestic Equtiy Policy 17.58 18.71 14.96 -0.49 17.76 21.60 30.20 0.55 10.96 -6.42 Difference 0.22 -0.27 -4.92 0.48 -1.30 -8.01 -3.44 -3.86 3.24 1.36 Dana Large Cap Core N/A N/A 8.40 (91)0.09 (51)N/A N/A N/A N/A N/A N/A S&P 500 Index 17.91 (40)18.61 (53)15.43 (22)-0.61 (63)19.73 (45)19.34 (65)30.20 (44)1.14 (51)10.16 (41)-6.91 (64) Difference N/A 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 17.31 18.74 13.26 0.09 19.21 20.66 29.63 1.16 9.53 -5.79 Vanguard Extended Mkt Index (VEXAX)16.12 (17)19.00 (42)13.44 (53)-0.21 (61)N/A N/A N/A N/A N/A N/A S&P Completion Index 16.02 (18)18.91 (44)13.26 (55)-0.27 (61)9.66 (23)31.34 (29)30.37 (36)-2.06 (32)15.92 (26)-3.92 (37) Difference 0.10 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 12.30 18.42 13.75 0.75 6.73 29.25 28.61 -3.64 13.97 -5.99 Vanguard Index 500 Admiral (VFIAX)17.87 (28)N/A N/A N/A N/A N/A N/A N/A N/A N/A S&P 500 Index 17.91 (28)18.61 (46)15.43 (17)-0.61 (30)19.73 (18)19.34 (60)30.20 (23)1.14 (24)10.16 (24)-6.91 (62) Difference -0.04 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 16.08 18.36 12.98 -1.62 17.38 19.98 27.93 -1.13 8.32 -5.57 MFS Growth Fund (MFEKX)29.09 (17)N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Growth Index 26.30 (39)21.94 (28)13.76 (18)3.17 (45)19.15 (23)19.27 (52)29.19 (35)3.78 (17)12.65 (25)-1.85 (42) Difference 2.79 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 25.08 20.13 10.96 2.85 16.89 19.35 27.38 0.51 10.19 -2.52 Becker Value Equity Fund (BVEIX)8.91 (68)N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Value Index 9.45 (60)15.12 (73)16.19 (18)-4.42 (40)18.89 (20)22.30 (52)30.92 (16)-1.89 (29)8.90 (28)-10.62 (81) Difference -0.54 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 10.41 16.79 12.58 -4.96 17.27 22.42 28.46 -3.43 6.88 -7.09 Comparative Performance Total Fund As of March 31, 2019 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 March 31, 2019 Oct-2017 To Sep-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 1.47 20.64 8.52 -4.93 N/A N/A N/A N/A N/A N/A Total International Equity Policy 2.25 20.15 9.80 -11.78 5.22 16.98 15.04 -10.42 8.00 6.43 Difference -0.78 0.49 -1.28 6.85 N/A N/A N/A N/A N/A N/A American Funds EuroPacific Gr R6 (RERGX)1.47 (57)20.63 (9)8.52 (40)-4.93 (36)N/A N/A N/A N/A N/A N/A MSCI AC World ex USA 2.25 (47)20.15 (20)9.80 (28)-11.78 (87)5.22 (30)16.98 (60)15.04 (74)-10.42 (47)8.00 (48)6.43 (18) Difference -0.78 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 2.00 17.83 7.87 -5.67 4.38 18.00 17.66 -10.78 7.40 1.85 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 19 Comparative Performance Total Fund As of March 31, 2019 Oct-2017 To Sep-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 -0.11 2.57 7.09 0.24 5.18 -1.38 4.93 1.16 5.66 8.45 Total Fixed Income Policy -1.22 0.07 5.19 2.94 3.96 -1.68 5.16 5.02 7.77 10.01 Difference 1.11 2.50 1.90 -2.70 1.22 0.30 -0.23 -3.86 -2.11 -1.56 Dodge & Cox Income Fund (DODIX)-0.12 (7)2.57 (3)7.09 (3)0.16 (94)5.76 (9)N/A N/A N/A N/A N/A Blmbg. Barc. U.S. Aggregate Index -1.22 (41)0.07 (64)5.19 (52)2.94 (9)3.96 (59)-1.68 (53)5.16 (81)5.26 (14)8.16 (76)10.56 (59) Difference 1.10 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 -1.35 0.48 5.21 1.98 4.19 -1.62 6.79 4.30 9.34 11.36 PIMCO Total Return Fund (PTTRX)N/A 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 -1.22 (41)0.07 (64)5.19 (52)2.94 (9)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 N/A -0.66 N/A N/A N/A N/A N/A IM U.S. Broad Market Core Fixed Income (MF) Median -1.35 0.48 5.21 1.98 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 N/A 4.93 (95)1.16 (100)5.66 (100)N/A Blmbg. Barc. U.S. Aggregate Index -1.22 (89)0.07 (87)5.19 (81)2.94 (60)3.96 (81)-1.68 (80)5.16 (91)5.26 (49)8.16 (86)10.56 (82) Difference N/A 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 -0.74 0.62 5.67 3.02 4.51 -1.22 6.62 5.26 9.26 12.30 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. 20 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 8.50 6.94 1.04 105.74 11 109.49 1 Index 8.24 6.24 1.12 100.00 10 100.00 2 90 Day U.S. Treasury Bill 1.17 0.23 N/A 6.66 12 -6.51 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 5.90 7.30 0.73 100.83 16 108.05 4 Index 6.36 6.71 0.85 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.73 0.24 N/A 4.23 19 -3.19 1 Risk and Return 3 Years Investment Index 8.2 8.3 8.4 8.5 8.6 Return (%)6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 7.0 7.1 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 5.8 6.0 6.2 6.4 6.6 Return (%)6.6 6.7 6.8 6.9 7.0 7.1 7.2 7.3 7.4 7.5 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0Return Percentile Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)5 (25%)13 (65%)2 (10%)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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)4 (20%)13 (65%)3 (15%)¾ Index 20 0 (0%)7 (35%)13 (65%)0 (0%)¾ Strategy Review Total Fund Composite | Total Fund Policy As of March 31, 2019 21 Peer Group Analysis - All Public Plans-Total Fund -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 9.96 (11)-0.40 (72)4.24 (55)7.40 (41)8.50 (55)5.37 (68)5.90 (61) Index 9.02 (40)0.73 (32)5.44 (17)7.29 (47)8.24 (64)6.00 (47)6.36 (39) Median 8.73 0.17 4.34 7.17 8.59 5.91 6.08 Peer Group Analysis - All Public Plans-Total Fund -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 ReturnOct-2017 To Sep-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 Investment 8.40 (32)12.18 (49)8.47 (81)-0.63 (47)12.18 (5)8.60 (89) Index 7.54 (51)11.19 (65)10.43 (25)-0.74 (49)10.33 (43)10.28 (80) Median 7.59 12.15 9.77 -0.79 9.92 12.46 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -9.42 (89)3.05 (33)1.56 (34)0.01 (34)3.57 (57)3.56 (45) Index -7.60 (51)3.31 (19)1.32 (44)-0.97 (88)3.75 (43)3.33 (60) Median -7.59 2.70 1.19 -0.27 3.64 3.46 Strategy Review Total Fund Composite | Total Fund Policy As of March 31, 2019 22 Peer Group Analysis - IM U.S. Large Cap Value Equity (MF) -13.0 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 9.92 (85)-7.19 (99)-2.88 (100)2.49 (100)N/A N/A N/A Index 11.93 (40)-1.19 (22)5.67 (33)6.31 (54)10.45 (47)7.32 (36)7.72 (32) Median 11.56 -2.83 4.23 6.51 10.28 6.73 7.12 Peer Group Analysis - IM U.S. Large Cap Value Equity (MF) -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 ReturnOct-2017 To Sep-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 Investment 8.91 (68)N/A N/A N/A N/A N/A Index 9.45 (60)15.12 (73)16.19 (18)-4.42 (40)18.89 (20)22.30 (52) Median 10.41 16.79 12.58 -4.96 17.27 22.42 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -15.57 (91)3.51 (98)1.10 (60)-2.05 (25)6.24 (39)2.92 (74) Index -11.72 (29)5.70 (57)1.18 (58)-2.83 (58)5.33 (63)3.11 (71) Median -12.94 5.93 1.37 -2.59 5.77 3.75 Strategy Review Becker Value Equity Fund (BVEIX) | Russell 1000 Value Index As of March 31, 2019 23 Peer Group Analysis - IM U.S. Large Cap Core 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 13.65 (32)-1.73 (38)9.46 (22)11.68 (27)N/A N/A N/A Index 13.65 (32)-1.72 (38)9.50 (21)11.72 (27)13.51 (22)10.46 (11)10.91 (12) Median 13.12 -2.35 7.74 10.47 12.37 8.88 9.37 Peer Group Analysis - IM U.S. Large Cap Core Equity (MF) -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 ReturnOct-2017 To Sep-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 Investment 17.87 (28)N/A N/A N/A N/A N/A Index 17.91 (28)18.61 (46)15.43 (17)-0.61 (30)19.73 (18)19.34 (60) Median 16.08 18.36 12.98 -1.62 17.38 19.98 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -13.53 (45)7.70 (32)3.42 (27)-0.77 (45)6.64 (40)4.48 (47) Index -13.52 (45)7.71 (31)3.43 (26)-0.76 (45)6.64 (39)4.48 (47) Median -13.77 7.26 2.81 -1.01 6.44 4.44 Strategy Review Vanguard Index 500 Admiral (VFIAX) | S&P 500 Index As of March 31, 2019 24 Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) -12.0 -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 17.77 (11)-0.22 (20)14.95 (17)20.16 (16)N/A N/A N/A Index 16.10 (55)-2.34 (60)12.75 (41)16.92 (48)16.53 (42)12.86 (28)13.50 (24) Median 16.26 -1.85 12.03 16.72 16.08 11.75 12.46 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-2017 To Sep-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 Investment 29.09 (17)N/A N/A N/A N/A N/A Index 26.30 (39)21.94 (28)13.76 (18)3.17 (45)19.15 (23)19.27 (52) Median 25.08 20.13 10.96 2.85 16.89 19.35 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -15.28 (42)8.09 (42)6.58 (29)5.21 (16)6.51 (56)5.06 (62) Index -15.89 (53)9.17 (11)5.76 (51)1.42 (78)7.86 (10)5.90 (35) Median -15.76 7.78 5.77 2.82 6.66 5.52 Strategy Review MFS Growth Fund (MFEKX) | Russell 1000 Growth Index As of March 31, 2019 25 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 13.29 13.84 0.89 100.31 11 99.71 1 Index 13.17 13.85 0.88 100.00 11 100.00 1 90 Day U.S. Treasury Bill 1.17 0.23 N/A 3.37 12 -3.21 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 7.86 14.20 0.56 100.33 15 99.78 5 Index 7.75 14.20 0.55 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.73 0.24 N/A 2.18 19 -1.53 1 Risk and Return 3 Years Investment Index 13.1 13.2 13.3 13.4 Return (%)13.8 13.9 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 7.7 7.8 7.9 Return (%)14.1 14.2 14.3 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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 10 3 (30%)5 (50%)2 (20%)0 (0%)¾ Index 20 7 (35%)10 (50%)3 (15%)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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 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 14 (70%)6 (30%)0 (0%)0 (0%)¾ Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of March 31, 2019 26 Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF) -20.0 -16.0 -12.0 -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 15.97 (13)-5.11 (15)4.95 (13)8.96 (9)13.29 (9)7.28 (18)7.86 (15) Index 15.99 (13)-5.22 (17)4.76 (14)8.84 (11)13.17 (10)7.15 (20)7.75 (18) Median 14.01 -8.08 0.38 4.78 9.97 5.57 6.01 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 52.0 ReturnOct-2017 To Sep-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 Investment 16.12 (17)19.00 (42)13.44 (53)-0.21 (61)N/A N/A Index 16.02 (18)18.91 (44)13.26 (55)-0.27 (61)9.66 (23)31.34 (29) Median 12.30 18.42 13.75 0.75 6.73 29.25 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -18.18 (31)4.37 (24)5.98 (45)0.15 (18)4.82 (34)4.96 (44) Index -18.28 (34)4.33 (25)5.94 (47)0.12 (19)4.84 (33)4.96 (43) Median -18.95 3.26 5.69 -1.07 3.91 4.74 Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of March 31, 2019 27 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 9.33 11.22 0.75 102.12 7 96.79 5 Index 8.61 10.41 0.73 100.00 7 100.00 5 90 Day U.S. Treasury Bill 1.17 0.23 N/A 4.01 12 -3.64 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 4.27 11.45 0.36 94.16 11 84.88 9 Index 3.05 11.92 0.25 100.00 11 100.00 9 90 Day U.S. Treasury Bill 0.73 0.24 N/A 2.63 19 -1.69 1 Risk and Return 3 Years Investment Index 8.2 8.4 8.6 8.8 9.0 9.2 9.4 9.6 Return (%)10.2 10.4 10.6 10.8 11.0 11.2 11.4 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 2.7 3.0 3.3 3.6 3.9 4.2 4.5 4.8 Return (%)11.3 11.4 11.5 11.6 11.7 11.8 11.9 12.0 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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 10 6 (60%)4 (40%)0 (0%)0 (0%)¾ Index 20 2 (10%)4 (20%)11 (55%)3 (15%)¾ 5 Year Rolling Percentile Rank IM International Large Cap Growth Equity (MF) 0.0 25.0 50.0 75.0 100.0Return Percentile Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 2 1 (50%)1 (50%)0 (0%)0 (0%)¾ Index 20 0 (0%)5 (25%)8 (40%)7 (35%)¾ Strategy Review American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA As of March 31, 2019 28 Peer Group Analysis - IM International Large Cap Growth Equity (MF) -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 13.20 (27)-1.05 (34)-4.66 (52)7.49 (34)9.33 (19)4.64 (28)4.27 (24) Index 10.44 (92)-2.16 (50)-3.74 (44)6.15 (52)8.61 (32)3.97 (39)3.05 (48) Median 12.38 -2.16 -4.57 6.29 7.33 3.20 2.93 Peer Group Analysis - IM International Large Cap Growth Equity (MF) -34.0 -28.0 -22.0 -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 32.0 ReturnOct-2017 To Sep-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 Investment 1.47 (57)20.63 (9)8.52 (40)-4.93 (36)N/A N/A Index 2.25 (47)20.15 (20)9.80 (28)-11.78 (87)5.22 (30)16.98 (60) Median 2.00 17.83 7.87 -5.67 4.38 18.00 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment -12.59 (44)-0.84 (82)-2.82 (58)1.03 (19)4.23 (42)6.86 (23) Index -11.41 (27)0.80 (39)-2.39 (49)-1.08 (62)5.06 (12)6.25 (35) Median -12.68 0.24 -2.51 -0.68 4.10 5.29 Strategy Review American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA As of March 31, 2019 29 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.64 2.33 1.05 94.34 9 35.57 3 Index 2.03 2.93 0.31 100.00 9 100.00 3 90 Day U.S. Treasury Bill 1.17 0.23 N/A 14.56 12 -16.03 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.15 2.45 0.99 85.74 14 55.26 6 Index 2.74 2.83 0.72 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.73 0.24 N/A 8.34 19 -10.95 1 Risk and Return 3 Years Investment Index 1.6 2.0 2.4 2.8 3.2 3.6 4.0 Return (%)2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 2.6 2.8 3.0 3.2 3.4 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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 14 13 (93%)1 (7%)0 (0%)0 (0%)¾ Index 20 2 (10%)11 (55%)7 (35%)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 Rank6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 3/19 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%)11 (55%)8 (40%)1 (5%)¾ Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of March 31, 2019 30 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF) 0.2 0.8 1.4 2.0 2.6 3.2 3.8 4.4 5.0 5.6 6.2 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 3.70 (15)4.00 (69)4.31 (34)3.26 (10)3.64 (3)2.83 (2)3.15 (8) Index 2.94 (72)4.63 (20)4.48 (20)2.83 (30)2.03 (57)2.01 (35)2.74 (28) Median 3.23 4.28 4.09 2.63 2.13 1.86 2.49 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 ReturnOct-2017 To Sep-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 Investment -0.12 (7)2.57 (3)7.09 (3)0.16 (94)5.76 (9)N/A Index -1.22 (41)0.07 (64)5.19 (52)2.94 (9)3.96 (59)-1.68 (53) Median -1.35 0.48 5.21 1.98 4.19 -1.62 Comparative Performance 1 Qtr Ending Dec-2018 1 Qtr Ending Sep-2018 1 Qtr Ending Jun-2018 1 Qtr Ending Mar-2018 1 Qtr Ending Dec-2017 1 Qtr Ending Sep-2017 Investment 0.29 (86)0.64 (5)-0.33 (64)-0.90 (7)0.48 (24)1.13 (7) Index 1.64 (11)0.02 (65)-0.16 (30)-1.46 (47)0.39 (39)0.85 (42) Median 0.99 0.09 -0.25 -1.48 0.34 0.81 Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of March 31, 2019 31 Comparative Performance 1 YR 3 YR 5 YR 7 YR 10 YR 15 YR Becker Value Eq;Inst (BVEIX)-2.88 (100)8.73 (86)5.72 (87)9.82 (65)N/A N/A Russell 1000 Value Index 5.67 (33)10.45 (47)7.72 (32)11.14 (18)14.52 (24)7.63 (26) Difference -8.55 -1.72 -2.00 -1.32 N/A N/A IM U.S. Large Cap Value Equity (MF) Median 4.23 10.28 7.12 10.23 13.41 6.99 Vanguard 500 Idx;Adm (VFIAX)9.46 (14)13.47 (8)10.87 (5)12.81 (5)15.90 (3)8.55 (5) S&P 500 Index 9.50 (6)13.51 (2)10.91 (1)12.85 (1)15.92 (1)8.57 (2) Difference -0.04 -0.04 -0.04 -0.04 -0.02 -0.02 IM S&P 500 Index (MF) Median 9.19 13.12 10.49 12.38 15.42 8.22 MFS Growth;R6 (MFEKX)14.95 (17)18.14 (22)13.75 (19)14.91 (10)N/A N/A Russell 1000 Growth Index 12.75 (41)16.53 (42)13.50 (24)14.34 (19)17.52 (17)9.71 (27) Difference 2.20 1.61 0.25 0.57 N/A N/A IM U.S. Large Cap Growth Equity (MF) Median 12.03 16.08 12.46 13.28 16.16 9.01 Vanguard Ext MI;Adm (VEXAX)4.95 (13)13.29 (9)7.86 (15)11.55 (9)16.59 (8)9.28 (10) S&P Completion Index 4.76 (14)13.17 (10)7.75 (18)11.45 (10)16.49 (9)N/A Difference 0.19 0.12 0.11 0.10 0.10 N/A IM U.S. SMID Cap Core Equity (MF) Median 0.38 9.97 6.01 9.74 14.71 7.96 American Funds EuPc;A (AEPGX)-4.97 (59)8.95 (25)3.91 (30)6.51 (15)9.57 (33)6.81 (15) MSCI AC World ex USA -3.74 (44)8.61 (32)3.05 (48)5.21 (55)9.35 (41)6.06 (42) Difference -1.23 0.34 0.86 1.30 0.22 0.75 IM International Large Cap Growth Equity (MF) Median -4.57 7.33 2.93 5.33 9.10 5.97 Dodge & Cox Income (DODIX)4.31 (34)3.64 (3)3.15 (8)3.36 (5)5.37 (17)4.48 (6) Blmbg. Barc. U.S. Aggregate Index 4.48 (20)2.03 (57)2.74 (28)2.48 (48)3.77 (76)3.89 (35) Difference -0.17 1.61 0.41 0.88 1.60 0.59 IM U.S. Broad Market Core Fixed Income (MF) Median 4.09 2.13 2.49 2.45 4.50 3.72 Comparative Performance Manager Composite Performance Comparison As of March 31, 2019 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 32 Estimated Annual Fee (%) Market Value ($) Estimated Annual Fee ($) Fee Schedule Becker Value Equity Fund (BVEIX)0.68 293,309 1,995 0.68 % of Assets Vanguard Index 500 Admiral (VFIAX)0.05 702,361 351 0.05 % of Assets MFS Growth Fund (MFEKX)0.62 359,915 2,231 0.62 % of Assets Vanguard Extended Mkt Index (VEXAX)0.10 655,742 656 0.10 % of Assets Total Domestic Equity Composite 0.26 2,011,327 5,233 American Funds EuroPacific Gr R6 (RERGX)0.49 599,850 2,939 0.49 % of Assets Total International Equity Composite 0.49 599,850 2,939 Dodge & Cox Income Fund (DODIX)0.43 1,523,697 6,552 0.43 % of Assets Total Fixed Income Composite 0.43 1,523,697 6,552 R&D 61,823 - Total Fund Composite 0.35 4,196,697 14,724 Okeechobee Municipal Firefighters' Pension Fund Fee Analysis As of March 31, 2019 33 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 Value3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 $2,592,599 $4,196,697 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending March 31, 2019 34 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 31,2019 35 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: 36 Yes No N/A Yes No N/A Yes No N/A Yes No N/A Yes No N/A Manager Compliance: 37 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. 38 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. 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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. 39