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3.a.1. AndCo Quarterly Report June 30, 2019<CBDoc TenantId="2" EntityTypeId="3100" EntityId="79" DocumentTypeId="1" EffectiveDate="06/30/2019" Interval="3" Description="Quarterly Report" /> Investment Performance Review Period Ending June 30, 2019 Okeechobee Municipal Firefighters' Pension Fund 2nd Quarter 2019 Market Environment 1 Broad asset class returns were positive during the 2nd quarter of 2019 with both equity and fixed income indices extending their year-to-date gains. US stocks outperformed international stocks during a very volatile quarter. Equity indices rose to start the period as progress in global trade negotiations outweighed signs of weakness in macroeconomic data. However, trade discussions between the US and China fell apart in May prompting increased tariffs and sharp declines in equity markets. The softening in economic data, stubbornly low inflation and the threat of slower future growth caused by ongoing disruption in trade led the Federal Reserve (Fed) to communicate a shift toward a more accommodative policy stance. This change in central bank posture caused markets to rebound strongly, ending the quarter higher for the period. Fixed income returns were also positive during the quarter as the prospect of more accommodative monetary policy pushed interest rates lower, increasing bond prices. Within domestic equity markets, large cap stocks outperformed small cap equities during the quarter with the S&P 500 Index returning 4.3% versus a 2.1% return on the small cap Russell 2000 Index. US equity returns over the 1-year period were positive within large and mid cap stocks, returning 10.4% and 7.8% respectively, but small cap stocks posted a loss, falling -3.3%. Similar to US markets, international markets were volatile during the 2nd quarter as investors reacted to mixed economic data, heightened geopolitical uncertainly, particularly around the outlook for global trade and Brexit, and increased accommodation in central bank policy with the European Central Bank (ECB) and People’s Bank of China (PBoC) pledging additional stimulus if needed. Developed markets outperformed emerging markets during the period with the MSCI EAFE Index returning 3.7% versus a 0.6% return on the MSCI Emerging Markets Index. Both developing and emerging markets posted modest gains over the 1-year period, returning 1.1% and 1.2% respectively. Fixed income returns were in line with equities during the 2nd quarter. The broad market Bloomberg Barclays Aggregate Index returned 3.1% as a more dovish stance from the Fed and other global central banks pushed interest rates lower across the US Treasury Yield Curve. The curve steepened but remained inverted with shorter-term maturities paying higher interest rates than those in the middle of the curve. Investment grade corporate issues were the best performing securities for the second quarter in a row, outperforming Treasury and securitized issues. The Bloomberg Barclays Corporate IG Index returned 4.5% for the period, as corporate credit had tailwinds due to greater interest rate sensitivity, higher yields and tightening credit spreads. Corporate issues also outperformed the other major fixed income sectors over the 1-year period, returning 10.7% versus a 7.9% return for the Bloomberg Barclays Aggregate Index. Source: Investment Metrics The Market Environment Major Market Index Performance As of June 30, 2019 0.6% 4.5% 2.0% 2.9% 3.0% 3.1% 2.1% 4.1% 4.2% 4.1% 4.3% 0.6% 3.7% 3.0% 0.0%1.0%2.0%3.0%4.0%5.0% 3-Month T-Bill Bbg Barclays Corp IG Bbg Barclays MBS Bbg Barclays US TIPS Bbg Barclays US Govt Bbg Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS Quarter Performance 2.3% 10.7% 6.2% 4.8% 7.2% 7.9% -3.3% 7.8% 10.0% 9.0% 10.4% 1.2% 1.1% 1.3% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 3-Month T-Bill Bbg Barclays Corp IG Bbg Barclays MBS Bbg Barclays US TIPS Bbg Barclays US Govt Bbg Barclays US Agg Russell 2000 Russell MidCap Russell 1000 Russell 3000 S&P 500 MSCI Emerg Mkts MSCI EAFE MSCI ACWxUS 1-Year Performance 2 Source: Investment Metrics The Market Environment Domestic Equity Style Index Performance As of June 30, 2019 US equity index returns were modestly positive across the style and capitalization spectrum for the 2nd quarter. Corporate earnings reported during the quarter surprised to the upside, but economic data released during the period showed signs of slowing growth. Developments around global trade were particularly prominent during the period, heavily influencing market sentiment. Positive developments in trade negotiations with China came to an abrupt halt in May leading the US to increase tariffs on $200 billion of Chinese imports from 10% to 25% and announce that the US would consider tariffs on the remaining $300 billion in goods imported from China. China retaliated by increasing the tariff range on $60 billion of US goods from 5-10% to 5-25%. Additionally, the US instituted a ban on sales of technology equipment to Chinese telecommunications firm Huawei citing national security risks. China is expected to take similar action in retaliation although nothing has been announced. Trade talks are ready to resume and both sides have agreed to cease escalations following a meeting between President Trump and President Jinping at the G20 summit held at the end of the quarter. In addition, President Trump threatened a 5% tariff on all Mexican imports as a tact to reduce the level of illegal immigration at the US border with Mexico, and US waivers on sanctions for Iranian oil ended leading to increased tensions in the region that were further escalated after Iran downed a US drone. Despite these headwinds, markets rose following comments from an increasingly accommodative Fed as investors priced in greater odds of easy monetary policy going forward. During the quarter, higher market cap stocks outperformed lower market cap stocks across the style spectrum with the only exception being the outperformance of mid cap growth stocks relative to large cap growth stocks. The large cap Russell 1000 Index gained 4.2% during the period versus a 4.1% return for the Russell MidCap Index and a 2.1% gain on the small cap Russell 2000 Index as market participants may be moving toward the relative safety of large cap names as the economy continues to show growing signs of weakness. When viewed over the most recent 1-year period, large cap stocks outperformed relative to small cap stocks. The Russell 1000 returned 10.0% for the year while the Russell 2000 fell -3.3%. Growth indices outperformed value indices across the market cap spectrum during the 2nd quarter. Growth stocks have outperformed value in nine of the last ten quarters. The Russell MidCap Growth Index was the best performing style index for the period, returning 5.4% for the quarter with the small cap value index posting the lowest relative return, a gain of 1.4%. The trend of growth outperformance is also visible over the 1-year period as growth indices have benefitted from larger exposures to technology which has been a large driver of index performance over the last year, as well as a meaningful underweight to energy which has been a relative detractor. 2.7% 2.1% 1.4% 5.4% 4.1% 3.2% 4.6% 4.2% 3.8% 4.5% 4.1% 3.7% 0.0%2.0%4.0%6.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value Quarter Performance - Russell Style Series -0.5% -3.3% -6.2% 13.9%7.8% 3.7% 11.6% 10.0% 8.5% 10.6% 9.0% 7.3% -10.0% -5.0%0.0%5.0%10.0% 15.0% 2000 Growth 2000 Index 2000 Value MidCap Growth MidCap Index MidCap Value 1000 Growth 1000 Index 1000 Value 3000 Growth 3000 Index 3000 Value 1-Year Performance - Russell Style Series 3 Sector performance was broadly positive across large cap sectors for the 2nd quarter. There were gains for ten out of eleven sectors within the Russell 1000 Index during the period with four sectors outpacing the return of the index. Cyclical sectors such as technology, industrials and consumer discretionary were some of the best performers through the quarter returning 5.8%, 4.2% and 5.1% respectively. Financials also outperformed, returning 7.9%, as investors weighed the benefits of continued economic expansion due to easing monetary policy against the effects of lower interest rates on bank earnings. More defensive higher yielding sectors such as consumer staples, real estate and utilities underperformed for the quarter returning 3.5%, 1.8% and 3.4% respectively. The energy sector was the only large cap sector to post a negative return during the quarter, falling -3.6%, as headwinds from weakening economic data and low oil and natural gas prices weighed on 1st quarter earnings. Health care stocks also lagged as continued discussions in Washington around the potential for increased regulation on drug pricing acted as a headwind. Returns over the 1-year period were positive with nine out of eleven sectors posting gains, six of which were over 10%. Defensive sectors such as utilities, REITs and consumer staples performed well returning 19.5%, 13.9% and 15.5% respectively. Technology returns were also strong gaining 18.6%. Energy and materials were the only sectors to post negative results over the 1-year period with energy falling -14.9% and materials returning - 0.1%. Quarterly results for small cap sectors were generally worse than their large capitalization counterparts with only two of eleven sectors (industrials and utilities) outperforming their corresponding large cap equivalents. Five of eleven sectors produced gains during the period with four of eleven economic sectors outpacing the Russell 2000 Index return for the quarter. Similar to large caps, cyclical sectors performed well on hopes that any Fed policy easing would counteract the recent weakness in economic growth. The industrials sector performed particularly well returning 8.2%, financials posted a 5.1% gain and technology returned 3.1%. Utilities also outperformed returning 5.2%. The largest detractors over the period were energy and communication services which returned -8.7% and -6.0% respectively. Over the trailing 1-year period, returns were broadly negative. Utilities and technology were relative bright spots returning 18.2% and 11.1%. The energy sector was an outlier in terms of negative returns losing -37.6% during the period. There were also notable losses in materials and consumer staples with materials losing -13.0% and consumer staples falling -11.1%. The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2019 Source: Morningstar Direct 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. 19.5% 13.9% -0.1% 18.6% 10.1% 12.9% 6.1% -14.9% 15.5% 8.9% 5.0% 3.4% 1.8% 4.1% 5.8% 4.2% 1.6% 7.9% -3.6% 3.5% 5.1% 4.6% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Utilities (3.2%) Real Estate (3.8%) Materials (2.9%) Info Technology (21.7%) Industrials (9.8%) Health Care (13.8%) Financials (13.2%) Energy (4.9%) Consumer Staples (6.8%) Consumer Disc (10.3%) Comm Services (9.7%) Russell 1000 Quarter 1-Year 18.2% 1.7% -13.0% 11.1% -0.8% -6.7% -3.8% -37.6% -11.1% -6.8% -1.3% 5.2% 1.1% -0.4% 3.1% 8.2% -0.2% 5.1% -8.7% -3.2% -0.6% -6.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% Utilities (3.8%) Real Estate (7.6%) Materials (3.8%) Info Technology (15.5%) Industrials (14.6%) Health Care (15.6%) Financials (17.6%) Energy (3.5%) Consumer Staples (2.8%) Consumer Disc (12.0%) Comm Services (3.3%) Russell 2000 Quarter 1-Year 4 The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2019 Source: Morningstar Direct Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Microsoft Corp 3.71% 14.0% 37.5% Information Technology Array BioPharma Inc 0.48% 90.0% 176.1% Health Care Apple Inc 3.44% 4.6% 8.6% Information Technology The Trade Desk Inc A 0.37% 15.1% 142.8% Information Technology Amazon.com Inc 2.85% 6.3% 11.4% Consumer Discretionary Etsy Inc 0.36% -8.7% 45.5% Consumer Discretionary Facebook Inc A 1.68% 15.8% -0.7% Communication Services Coupa Software Inc 0.35% 39.2% 103.4% Information Technology Berkshire Hathaway Inc B 1.51% 6.1% 14.2% Financials Five Below Inc 0.32% -3.4% 22.8% Consumer Discretionary Johnson & Johnson 1.37% 0.3% 17.9% Health Care Planet Fitness Inc A 0.31% 5.4% 64.9% Consumer Discretionary JPMorgan Chase & Co 1.35% 11.3% 10.3% Financials HubSpot Inc 0.31% 2.6% 36.0% Information Technology Alphabet Inc Class C 1.20% -7.9% -3.1% Communication Services Haemonetics Corp 0.30% 37.6% 34.2% Health Care Exxon Mobil Corp 1.19% -4.1% -3.3% Energy Woodward Inc 0.30% 19.4% 48.0% Industrials Alphabet Inc A 1.18% -8.0% -4.1% Communication Services Ciena Corp 0.29% 10.1% 55.1% Information Technology Top 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector Adient PLC 0.01% 87.3% -50.0% Consumer Discretionary Iovance Biotherapeutics Inc 0.13% 157.8% 91.6% Health Care Anadarko Petroleum Corp 0.13% 55.8% -1.6% Energy Arqule Inc 0.06% 129.9% 99.1% Health Care Cypress Semiconductor Corp 0.03% 49.8% 46.9% Information Technology Adverum Biotechnologies Inc 0.03% 126.9% 124.3% Health Care Okta Inc A 0.04% 49.3% 145.2% Information Technology Chimerix Inc 0.01% 105.7% -9.2% Health Care Erie Indemnity Co Class A 0.02% 43.2% 122.5% Financials Enphase Energy Inc 0.08% 97.5% 170.9% Information Technology Heico Corp 0.02% 41.1% 83.9% Industrials Maxar Technologies Inc 0.02% 94.8% -84.0% Industrials Legg Mason Inc-LeggMason RETAIL 0.01% 39.9% 14.4% Financials Array BioPharma Inc 0.48% 90.0% 176.1% Health Care Exact Sciences Corp 0.05% 36.3% 97.4% Health Care Melinta Therapeutics Inc 0.00% 87.3% -79.1% Health Care Caesars Entertainment Corp 0.02% 36.0% 10.5% Consumer Discretionary G1 Therapeutics Inc 0.03% 84.7% -29.5% Health Care Ardagh Group SA 0.00% 35.9% 9.6% Materials Foundation Building Materials Inc 0.01% 80.7% 15.6% Industrials Bottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter) Russell 1000 Weight 1-Qtr Return 1-Year Return Sector Russell 2000 Weight 1-Qtr Return 1-Year Return Sector 2U Inc 0.01% -46.9% -55.0% Information Technology FuelCell Energy Inc 0.00% -94.0% -98.9% Industrials Alkermes PLC 0.01% -38.2% -45.2% Health Care Halcon Resources Corp 0.00% -86.9% -96.0% Energy Range Resources Corp 0.01% -37.7% -58.0% Energy Pioneer Energy Services Corp 0.00% -85.7% -95.7% Energy Antero Resources Corp 0.00% -37.4% -74.1% Energy Eros International PLC 0.00% -85.2% -89.6% Communication Services Chesapeake Energy Corp 0.01% -37.1% -62.8% Energy Superior Energy Services Inc 0.01% -72.2% -86.7% Energy RPC Inc 0.00% -36.5% -48.8% Energy electroCore Inc 0.00% -71.4% -87.9% Health Care Realogy Holdings Corp 0.00% -35.8% -67.4% Real Estate Ultra Petroleum Corp 0.00% -70.5% -92.2% Energy The Chemours Co 0.02% -34.7% -44.2% Materials Nuvectra Corp 0.00% -69.6% -83.7% Health Care United Therapeutics Corp 0.01% -33.5% -31.0% Health Care Dean Foods Co 0.00% -69.5% -91.1% Consumer Staples Mylan NV 0.04% -32.8% -47.3% Health Care Kirkland's Inc 0.00% -67.9% -80.6% Consumer Discretionary 5 Source: MSCI Global Index Monitor (Returns are Net) Broad international equity returns were positive for the quarter in both local currency and USD terms. The MSCI ACWI ex US Index gained 2.1% in local currency terms and 3.0% in US dollar (USD) terms during the 2nd quarter. Similar to US markets, international equity investors balanced difficulties around global trade with central bank shifts toward more accommodative policies as a response to slowing global growth. Notably the ECB President Mario Draghi stated that further monetary policy action may need to be taken if inflation remains below target and the PBoC launched stimulus measures designed to encourage growth following the deterioration of trade negotiations with the US. Returns in USD largely outperformed those in local currency during the quarter as the USD depreciated against most major developed currencies following dovish Fed comments in June. However, the recent USD strength can still be seen over the 1-year period with USD returns trailing most local currency returns. Returns for the MSCI ACWI ex US Index were 2.2% in local currency terms and 1.3%in USD terms for the trailing year. Results for developed market international indices were positive in both local currency and USD terms during the 2nd quarter, with the MSCI EAFE Index returning 2.8% and 3.7% respectively. Outside of central bank policy and trade, there was notable news out of the UK with Prime Minister Theresa May resigning from her post after her Brexit withdrawal plan failed to gain parliamentary approval and a new vote for the office is currently underway. UK markets were pressured by continued uncertainty around Brexit with the UK having until October to strike an agreement with the European Union (EU) or withdraw with no agreement in place. Despite the growing uncertainty, the Bank of England (BoE) left monetary policy unchanged. Japan also underperformed as the yen appreciated due to its perceived safe haven status and trade headwinds were expected to affect its export driven economy. The MSCI EAFE Index returned 2.2% and 1.1% for the last twelve months in local currency and USD terms respectively. Emerging markets underperformed relative to developed markets for the 2nd quarter, slightly appreciating in both local currency and USD terms. The MSCI Emerging Markets Index gained 0.2% and 0.6% respectively. As expected, geopolitical tensions around trade put pressure on emerging market stocks, with Chinese equities underperforming relative to most countries. Latin American stocks performed well with Brazil and Argentina posting strong returns as commodity prices appreciated from recent lows at the end of 2018 and interest rates fell. Russian equities also performed well, benefiting from increasing commodity prices, but also had a tailwind from a decrease in the likelihood of future US sanctions. One year returns for the MSCI Emerging Market Index were 1.8% in local currency terms and 1.2% in USD terms. The Market Environment International and Regional Market Index Performance (Country Count) As June 30, 2019 3.2% -1.2% 5.1% 0.2% 0.8% 4.0% 2.8% 2.8% 2.1% 4.4% -1.3% 7.2% 0.6% 2.4% 4.4% 3.7% 3.8% 3.0% -2.0%0.0%2.0%4.0%6.0%8.0% EM Latin Amer (6) EM Asia (9) EM EMEA (11) Emerging Mkt (26) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (48) Quarter Performance USD Local Currency 18.1% -1.7% 9.3% 1.8% -1.1% 4.2% 2.2% 2.2% 2.2% 18.5% -2.3% 6.7% 1.2% -0.2% 1.8% 1.1% 1.3% 1.3% -5.0%0.0%5.0%10.0% 15.0% 20.0% EM Latin Amer (6) EM Asia (9) EM EMEA (11) Emerging Mkt (26) Pacific (5) Europe & ME (16) EAFE (21) WORLD x US (22) AC World x US (48) 1-Year Performance USD Local Currency 6 The Market Environment US Dollar International Index Attribution & Country Detail As of June 30, 2019 Source: 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 - EAFE Sector Weight Quarter Return 1-Year Return Communication Services 5.4%4.0%4.3% Consumer Discretionary 11.1%5.9%-2.6% Consumer Staples 11.7%1.9%4.8% Energy 5.6%0.4%-5.5% Financials 18.9%4.3%-2.9% Health Care 11.2%2.0%7.5% Industrials 14.8%5.9%2.4% Information Technology 6.7%6.6%2.7% Materials 7.4%3.9%0.2% Real Estate 3.6%-2.2%2.3% Utilities 3.6%1.5%9.8% Total 100.0%3.7%1.1% MSCI - ACWIxUS Sector Weight Quarter Return 1-Year Return Communication Services 6.9%1.0%5.6% Consumer Discretionary 11.3%3.8%-3.6% Consumer Staples 9.8%2.2%4.6% Energy 7.2%0.5%-1.4% Financials 21.9%4.4%2.0% Health Care 8.3%1.2%4.2% Industrials 11.9%5.2%2.9% Information Technology 8.5%4.0%-0.7% Materials 7.6%2.9%-0.5% Real Estate 3.3%-1.6%4.3% Utilities 3.3%2.2%10.1% Total 100.0%3.0%1.3% MSCI - Emerging Mkt Sector Weight Quarter Return 1-Year Return Communication Services 11.7%-2.4%4.5% Consumer Discretionary 13.5%-1.2%-7.6% Consumer Staples 6.6%3.3%0.9% Energy 7.9%1.2%16.3% Financials 25.2%4.0%11.9% Health Care 2.6%-6.6%-24.7% Industrials 5.3%0.0%4.1% Information Technology 13.9%-0.1%-6.1% Materials 7.6%-1.2%-1.9% Real Estate 3.0%-0.2%10.1% Utilities 2.7%2.9%9.0% Total 100.0%0.6%1.2% MSCI-EAFE MSCI-ACWIxUS Quarter 1- Year Country Weight Weight Return Return Japan 23.7%15.8%1.0%-4.2% United Kingdom 16.8%11.2%0.9%-2.1% France 11.4%7.6%6.5%3.0% Switzerland 9.3%6.2%8.4%19.8% Germany 8.8%5.9%7.1%-3.8% Australia 7.1%4.8%7.3%6.6% Hong Kong 4.0%2.7%1.0%10.4% Netherlands 3.6%2.4%5.8%5.3% Spain 3.0%2.0%2.6%-2.1% Sweden 2.7%1.8%4.9%3.4% Italy 2.3%1.6%2.9%-0.7% Denmark 1.7%1.1%1.6%5.8% Singapore 1.4%0.9%7.0%8.3% Finland 1.0%0.7%0.2%-4.7% Belgium 1.0%0.7%1.2%-9.1% Norway 0.7%0.5%2.4%-4.3% Israel 0.6%0.4%-3.6%-4.5% Ireland 0.5%0.4%4.7%-9.2% New Zealand 0.3%0.2%3.9%16.0% Austria 0.2%0.2%0.8%-13.1% Portugal 0.2%0.1%1.6%-4.6% Total EAFE Countries 100.0%66.8%3.7%1.1% Canada 6.8%4.9%3.3% Total Developed Countries 73.6%3.8%1.3% China 8.3%-4.0%-6.7% Korea 3.3%-1.0%-9.1% Taiwan 2.9%0.9%1.1% India 2.4%0.5%7.9% Brazil 2.0%7.2%39.4% South Africa 1.6%6.6%-0.8% Russia 1.1%16.9%27.1% Thailand 0.8%9.3%19.8% Saudi Arabia 0.8%0.6%11.0% Mexico 0.7%1.1%-7.4% Indonesia 0.6%3.2%20.3% Malaysia 0.6%1.2%-0.8% Philippines 0.3%4.4%19.7% Poland 0.3%3.5%10.5% Qatar 0.3%0.6%18.8% Chile 0.2%-5.6%-12.1% United Arab Emirates 0.2%-2.7%3.0% Turkey 0.1%2.8%-17.1% Colombia 0.1%-2.4%-3.7% Peru 0.1%-1.9%3.5% Argentina 0.1%31.7%15.8% Greece 0.1%16.2%-9.2% Hungary 0.1%-4.1%12.7% Czech Republic 0.0%2.6%1.1% Egypt 0.0%7.8%5.4% Pakistan 0.0%-20.8%-36.7% Total Emerging Countries 26.4%0.6%1.2% Total ACWIxUS Countries 100.0%3.0%1.3% 7 Source: Bloomberg The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of June 30, 2019 Broad fixed income benchmarks built on their early 2019 gains during the 2nd quarter. During the 1st quarter, the Federal Open Market Committee (FOMC) reacted to a difficult end to 2018 by issuing guidance that the FOMC is no longer projecting any further interest rate increases through 2019. Federal Reserve Chair Jerome Powell also stated that the Fed would begin tapering the roll off from the planned balance sheet reduction program in May with a plan to halt the program entirely in September. The stoppage of the balance sheet reduction program represents an easing of monetary policy. The Fed took an increasingly dovish stance during the 2nd quarter reacting to softening economic data, tepid inflation and increased risks around global trade. While the committee left interest rates unchanged, the minutes from the June FOMC meeting indicate that the committee felt “downside risks to the outlook for economic activity had risen materially” during the quarter with several participants noting that a “near-term cut in the target range for the Federal Funds Rate could help cushion the effects of possible future adverse shocks to the economy”. These comments led market participants to forecast greater odds of an interest rate cut this year, pushing markets higher. Interest rates fell across all maturities on the US Treasury Yield Curve with the greatest declines occurring in the mid- and long-term issues. The curve remains inverted with short-term maturities paying higher interest rates than issues in the mid- to long-end of the curve. The bellwether Bloomberg Barclays US Aggregate Index posted positive returns for both the 1st quarter and the 1-year period, returning 3.1% and 7.9% respectively. Within investment grade credit, lower quality issues outperformed higher quality issues as investors gravitated toward higher risk securities during the quarter. Lower quality issues also benefitted from their higher durations. On an absolute basis, without negating the duration differences in the sub-indices, Baa rated credit was the best performing investment grade credit quality segment returning 4.8% for the quarter, while AAA was the worst performing, returning 2.6%. High yield issues returned 2.5% for the quarter as these issues did not commensurately benefit from the drop in interest rates due to their lower durations. Returns over the 1-year period generally show lower quality securities outperforming higher quality issues. Investment grade corporates outperformed the more defensive Treasury and mortgage backed sectors of the Bloomberg Barclays US Aggregate Index’s three broad sectors during the 2nd quarter. Investment grade corporate credit returned 4.5%, as falling interest rates benefitted these securities to a greater degree and credit spreads have continued to tighten since the end of 2018. When viewed over the 1-year period, corporate credit outperformed both Treasuries and mortgage backed securities. Corporate issues returned 10.7% versus a 6.2% return for mortgages and 7.2% gain on Treasury securities. 3.3% 3.4% 2.4% 3.1% 2.9% 4.5% 2.0% 3.0% 2.5% 4.8%4.2% 3.3% 2.6% 0.0%1.0%2.0%3.0%4.0%5.0% Multiverse (6.9) Global Agg x US (8.2) Intermediate Agg (3.7) Aggregate (5.7) U.S. TIPS (1.1) U.S. Corporate IG (7.6) U.S. Mortgage (3.2) U.S. Treasury (6.4) U.S. High Yield (3.2) Baa (7.7) A (7.6) AA (6.4) AAA (5.0) Quarter Performance 6.0% 4.1% 6.7% 7.9% 4.8% 10.7% 6.2% 7.2% 7.5% 11.4%10.1% 8.5% 6.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Multiverse (6.9) Global Agg x US (8.2) Intermediate Agg (3.7) Aggregate (5.7) U.S. TIPS (1.1) U.S. Corporate IG (7.6) U.S. Mortgage (3.2) U.S. Treasury (6.4) U.S. High Yield (3.2) Baa (7.7) A (7.6) AA (6.4) AAA (5.0) 1-Year Performance 8 Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2019 Global fixed income returns were in line with their domestic counterparts, slightly outperforming during the 2nd quarter. These indices have lower, or in some cases (Germany, Japan), negative yields, but have higher durations. The returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. The USD depreciated against most other developed currencies, acting as a tailwind to global bond indices. The return on global bonds, as represented by the Bloomberg Barclays Global Aggregate ex US Index, was 3.4%. Global bonds still trail over the 1-year period with the Global Aggregate ex US Index returning 4.1% versus a 7.9% return on the domestically focused Barclays Aggregate Index. As global growth has shown signs of stalling, several international central banks have started to step back from more restrictive postures. The ECB and the PBoC have moved toward an easing of monetary policy and implemented various stimulus programs designed to support their respective economies. The Bank of England and the Bank of Japan made no major policy changes during the quarter as they continue to review macroeconomic data within their respective countries. 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) fell from recent high’s greater than 3.0%, to 2.0% to end the quarter. 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 an abrupt increase in credit spreads during the 4th quarter of 2018 as investors moved to higher quality assets during the quarter’s risk-off environment. Subsequently, spreads dropped steadily until they rose again in May and then later declined in June. This spread tightening is equivalent to an interest rate decrease on corporate bonds, which produces an additional tailwind for corporate bond index returns. These credit spreads have tightened by about 6 basis points over the last three months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate due to the tightening of US monetary policy during 2018. There have been no changes to the Federal Funds Rate in 2019. The lower graph provides a snapshot of the US Treasury yield curve at the end of each of the last four calendar quarters. The downward shift in interest rates as well as a general steepening of the yield curve are clearly visible over the last quarter. 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 of the curve. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 1-Year Trailing Market Rates Fed Funds Rate TED Spread 3-Month Libor BAA OAS 10yr Treasury 10yr TIPS 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Treasury Yield Curve 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9 Asset Allocation By Segment as of March 31, 2019 : $4,196,697 Asset Allocation By Segment as of June 30, 2019 : $4,310,683 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¢ Allocation Segments Market Value Allocation Domestic Equity 2,088,885 48.5¢ International Equity 623,083 14.5¢ Fixed Income 1,566,164 36.3¢ Cash Equivalent 32,552 0.8¢ Asset Allocation Summary Total Fund As of June 30, 2019 NONE 10 Asset Allocation By Manager as of March 31, 2019 : $4,196,697 Asset Allocation By Manager as of June 30, 2019 : $4,310,683 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¢ Vanguard Equity-Income (VEIRX)-0.0¢ Allocation Market Value Allocation Dodge & Cox Income Fund (DODIX)1,566,164 36.3¢ Vanguard Index 500 Admiral (VFIAX)732,551 17.0¢ Vanguard Extended Mkt Index (VEXAX)675,656 15.7¢ American Funds EuroPacific Gr R6 (RERGX) 623,083 14.5¢ MFS Growth Fund (MFEKX)383,592 8.9¢ Vanguard Equity-Income (VEIRX)297,085 6.9¢ R&D 32,552 0.8¢ Becker Value Equity Fund (BVEIX)-0.0¢ Asset Allocation Summary Total Fund As of June 30, 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 $5,200,000 Market Value6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 $2,470,212 $4,310,683 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending June 30, 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 $32,551.9 (0.8%) Total Fixed Income Composite $1,566,164.0 (36.3%) Total International Equity Composite $623,082.8 (14.5%) Total Domestic Equity Composite $2,088,884.8 (48.5%) 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 4,310,683 100.0 N/A N/A 100.0 --- Total Domestic Equity Composite 2,088,885 48.5 40.0 50.0 45.0 -364,611 66,457 -149,077 Total International Equity Composite 623,083 14.5 10.0 20.0 15.0 -192,014 239,054 23,520 Total Fixed Income Composite 1,566,164 36.3 30.0 50.0 40.0 -272,959 589,178 158,109 R&D 32,552 0.8 0.0 0.0 0.0 -32,552 -32,552 -32,552 Okeechobee Municipal Firefighters' Pension Fund Asset Allocation Compliance As of June 30, 2019 13 Financial Reconciliation Quarter to Date Market Value 04/01/2019 Net Transfers Contributions Distributions Management Fees Other Expenses Income Apprec./ Deprec. Market Value 06/30/2019 Total Equity Composite 2,611,177 -----9,801 90,990 2,711,968 Vanguard Extended Mkt Index (VEXAX)655,742 -----1,672 18,242 675,656 Vanguard Index 500 Admiral (VFIAX)702,361 -----3,731 26,460 732,551 MFS Growth Fund (MFEKX)359,915 -----1,578 22,100 383,592 Becker Value Equity Fund (BVEIX)293,309 -288,326 ------4,983 - Vanguard Equity-Income (VEIRX)- 288,326 ----1,876 6,882 297,085 American Funds EuroPacific Gr R6 (RERGX) 599,850 -----945 22,289 623,083 Total Fixed Income Composite 1,523,697 ----- 12,288 30,179 1,566,164 Dodge & Cox Income Fund (DODIX)1,523,697 ----- 12,288 30,179 1,566,164 R&D 61,823 - 28,334 -36,253 --21,689 337 -32,552 Total Fund Composite 4,196,697 - 28,334 -36,253 --21,689 22,426 121,169 4,310,683 Financial Reconciliation Total Fund 1 Quarter Ending June 30, 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 06/30/2019 Total Equity Composite 2,688,828 -----71,011 -47,872 2,711,968 Vanguard Extended Mkt Index (VEXAX)691,078 -----6,215 -21,637 675,656 Vanguard Index 500 Admiral (VFIAX)714,747 -----11,022 6,782 732,551 MFS Growth Fund (MFEKX)360,718 -----12,508 10,366 383,592 Becker Value Equity Fund (BVEIX)316,049 -288,326 ----22,759 -50,481 - Vanguard Equity-Income (VEIRX)- 288,326 ----1,876 6,882 297,085 American Funds EuroPacific Gr R6 (RERGX) 606,236 -----16,632 215 623,083 Total Fixed Income Composite 1,465,249 -1,582 ----40,272 62,226 1,566,164 Dodge & Cox Income Fund (DODIX)1,465,249 -1,582 ----40,272 62,226 1,566,164 R&D 38,970 1,582 155,472 -114,820 --49,351 698 -32,552 Total Fund Composite 4,193,047 - 155,472 -114,820 --49,351 111,981 14,354 4,310,683 Financial Reconciliation Total Fund October 1, 2018 To June 30, 2019 15 Comparative Performance Trailing Returns QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total Fund Composite (Gross)3.43 (25)3.02 (66)6.16 (56)9.05 (44)5.84 (54)5.69 (51)10/01/2007 Total Fund Policy 3.69 (10)4.45 (18)7.91 (11)8.83 (55)6.33 (32)5.76 (46) Difference -0.26 -1.43 -1.75 0.22 -0.49 -0.07 All Public Plans-Total Fund Median 3.23 3.39 6.31 8.91 5.92 5.71 Total Fund Composite (Net)3.43 3.02 6.16 8.98 5.73 6.54 01/01/2003 Total Fund Policy 3.69 4.45 7.91 8.83 6.33 6.98 Difference -0.26 -1.43 -1.75 0.15 -0.60 -0.44 Total Equity Composite 3.84 0.84 5.29 12.67 7.62 8.44 01/01/2003 Total Equity Policy 3.97 1.65 7.78 13.36 8.92 9.32 Difference -0.13 -0.81 -2.49 -0.69 -1.30 -0.88 Total Domestic Equity Composite 3.82 0.27 6.30 13.23 8.61 8.77 01/01/2003 Total Domestic Equtiy Policy 4.10 1.74 8.98 14.02 10.19 10.06 Difference -0.28 -1.47 -2.68 -0.79 -1.58 -1.29 Vanguard Equity-Income (VEIRX)N/A N/A N/A N/A N/A 6.18 (85)06/01/2019 Russell 1000 Value Index 3.84 (38)2.61 (23)8.46 (31)10.19 (61)7.46 (33)7.18 (30) Difference N/A N/A N/A N/A N/A -1.00 IM U.S. Large Cap Value Equity (MF) Median 3.47 0.47 6.39 10.52 6.90 6.73 Vanguard Index 500 Admiral (VFIAX)4.30 (45)2.49 (39)10.38 (34)N/A N/A 11.99 (29)03/01/2017 S&P 500 Index 4.30 (45)2.51 (39)10.42 (34)14.19 (26)10.71 (14)12.03 (28) Difference 0.00 -0.02 -0.04 N/A N/A -0.04 IM U.S. Large Cap Core Equity (MF) Median 4.17 1.65 9.26 13.11 9.33 10.89 MFS Growth Fund (MFEKX)6.58 (11)6.34 (13)14.95 (12)N/A N/A 21.01 (10)03/01/2017 Russell 1000 Growth Index 4.64 (56)2.19 (59)11.56 (36)18.07 (45)13.39 (30)17.16 (49) Difference 1.94 4.15 3.39 N/A N/A 3.85 IM U.S. Large Cap Growth Equity (MF) Median 4.77 2.83 10.56 17.71 12.53 17.07 Vanguard Extended Mkt Index (VEXAX)3.04 (36)-2.23 (17)2.04 (15)13.16 (11)7.80 (15)8.24 (14)01/01/2014 S&P Completion Index 3.02 (37)-2.36 (18)1.88 (16)13.05 (12)7.69 (18)8.14 (16) Difference 0.02 0.13 0.16 0.11 0.11 0.10 IM U.S. SMID Cap Core Equity (MF) Median 2.62 -5.36 -2.86 10.10 5.97 6.20 Comparative Performance Total Fund As of June 30, 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 June 30, 2019 QTR FYTD 1 YR 3 YR 5 YR Inception Inception Date Total International Equity Composite 3.87 2.78 1.91 10.84 4.45 4.73 01/01/2014 Total International Equity Policy 3.22 0.99 1.80 9.91 2.65 3.47 Difference 0.65 1.79 0.11 0.93 1.80 1.26 American Funds EuroPacific Gr R6 (RERGX)3.87 (71)2.78 (39)1.91 (53)10.84 (21)4.45 (26)4.73 (25)01/01/2014 MSCI AC World ex USA 3.22 (85)0.99 (62)1.80 (56)9.91 (42)2.65 (62)3.47 (46) Difference 0.65 1.79 0.11 0.93 1.80 1.26 IM International Large Cap Growth Equity (MF) Median 4.36 1.95 2.14 9.61 3.08 3.34 Total Fixed Income Composite 2.79 6.89 7.57 3.69 3.27 3.73 01/01/2003 Total Fixed Income Policy 3.08 7.85 7.87 2.31 2.95 3.93 Difference -0.29 -0.96 -0.30 1.38 0.32 -0.20 Dodge & Cox Income Fund (DODIX)2.79 (82)6.90 (81)7.58 (49)3.69 (3)3.27 (10)3.25 (4)11/01/2012 Blmbg. Barc. U.S. Aggregate Index 3.08 (41)7.85 (24)7.87 (28)2.31 (54)2.95 (26)2.48 (40) Difference -0.29 -0.95 -0.29 1.38 0.32 0.77 IM U.S. Broad Market Core Fixed Income (MF) Median 3.04 7.48 7.56 2.39 2.67 2.37 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 (26)12.18 (45)8.47 (77)-0.63 (47)12.18 (11)8.60 (83)18.27 (38)-1.69 (91)11.01 (25)1.69 (49) Total Fund Policy 7.54 (41)11.19 (63)10.43 (31)-0.74 (50)10.33 (45)10.28 (71)17.77 (49)2.00 (27)9.68 (57)0.48 (65) 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 7.10 11.84 9.74 -0.78 9.93 12.08 17.67 0.69 9.90 1.44 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 Equity-Income (VEIRX)N/A 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 N/A 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 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 Comparative Performance Total Fund As of June 30, 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 June 30, 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 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 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 June 30, 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 9.05 7.81 0.98 106.56 11 111.92 1 Index 8.83 7.01 1.05 100.00 10 100.00 2 90 Day U.S. Treasury Bill 1.37 0.23 N/A 6.73 12 -6.71 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 5.84 7.78 0.66 101.65 16 109.43 4 Index 6.33 7.13 0.78 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.85 0.26 N/A 4.64 19 -3.58 1 Risk and Return 3 Years Investment Index 8.7 8.8 8.9 9.0 9.1 Return (%)6.8 6.9 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 8.0 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 5.6 5.8 6.0 6.2 6.4 6.6 Return (%)6.8 6.9 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 8.0 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0Return Percentile Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)11 (55%)7 (35%)2 (10%)¾ Index 20 0 (0%)10 (50%)10 (50%)0 (0%)¾ 5 Year Rolling Percentile Rank All Public Plans-Total Fund 0.0 25.0 50.0 75.0 100.0Return Percentile Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 20 0 (0%)4 (20%)14 (70%)2 (10%)¾ Index 20 0 (0%)15 (75%)5 (25%)0 (0%)¾ Strategy Review Total Fund Composite | Total Fund Policy As of June 30, 2019 21 Peer Group Analysis - All Public Plans-Total Fund 0.0 2.0 4.0 6.0 8.0 10.0 12.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 3.43 (25)3.02 (66)6.16 (56)7.54 (37)9.05 (44)6.43 (64)5.84 (54) Index 3.69 (10)4.45 (18)7.91 (11)7.73 (28)8.83 (55)7.09 (30)6.33 (32) Median 3.23 3.39 6.31 7.21 8.91 6.72 5.92 Peer Group Analysis - All Public Plans-Total Fund -10.0 -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 (26)12.18 (46)8.47 (77)-0.63 (46)12.18 (10)8.60 (83) Index 7.54 (41)11.19 (63)10.43 (31)-0.74 (48)10.33 (45)10.28 (71) Median 7.10 11.89 9.74 -0.81 9.93 12.15 Comparative Performance 1 Qtr Ending Mar-2019 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 Investment 9.96 (8)-9.42 (90)3.05 (30)1.56 (26)0.01 (33)3.57 (54) Index 9.02 (30)-7.60 (51)3.31 (18)1.32 (37)-0.97 (83)3.75 (42) Median 8.38 -7.55 2.58 1.03 -0.32 3.61 Strategy Review Total Fund Composite | Total Fund Policy As of June 30, 2019 22 Peer Group Analysis - IM U.S. Large Cap Core Equity (MF) -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 4.30 (45)2.49 (39)10.38 (34)12.34 (25)N/A N/A N/A Index 4.30 (45)2.51 (39)10.42 (34)12.38 (24)14.19 (26)11.55 (13)10.71 (14) Median 4.17 1.65 9.26 11.21 13.11 9.94 9.33 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 Mar-2019 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 Investment 13.65 (32)-13.53 (45)7.70 (32)3.42 (27)-0.77 (45)6.64 (40) Index 13.65 (32)-13.52 (45)7.71 (31)3.43 (26)-0.76 (45)6.64 (39) Median 13.12 -13.77 7.26 2.81 -1.01 6.44 Strategy Review Vanguard Index 500 Admiral (VFIAX) | S&P 500 Index As of June 30, 2019 23 Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 6.58 (11)6.34 (13)14.95 (12)20.09 (13)N/A N/A N/A Index 4.64 (56)2.19 (59)11.56 (36)16.91 (43)18.07 (45)14.11 (25)13.39 (30) Median 4.77 2.83 10.56 16.37 17.71 12.94 12.53 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 Mar-2019 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 Investment 17.77 (11)-15.28 (42)8.09 (42)6.58 (29)5.21 (16)6.51 (56) Index 16.10 (55)-15.89 (53)9.17 (11)5.76 (51)1.42 (78)7.86 (10) Median 16.26 -15.76 7.78 5.77 2.82 6.66 Strategy Review MFS Growth Fund (MFEKX) | Russell 1000 Growth Index As of June 30, 2019 24 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 13.16 15.01 0.81 100.28 11 99.79 1 Index 13.05 15.02 0.80 100.00 11 100.00 1 90 Day U.S. Treasury Bill 1.37 0.23 N/A 3.57 12 -3.13 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 7.80 14.75 0.53 100.33 15 99.83 5 Index 7.69 14.75 0.52 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.85 0.26 N/A 2.43 19 -1.73 1 Risk and Return 3 Years Investment Index 13.0 13.1 13.2 Return (%)15.0 15.1 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 7.6 7.7 7.8 7.9 Return (%)14.7 14.8 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 Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 11 4 (36%)5 (45%)2 (18%)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 Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 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 14 (70%)6 (30%)0 (0%)0 (0%)¾ Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of June 30, 2019 25 Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF) -16.0 -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 3.04 (36)-2.23 (17)2.04 (15)9.16 (10)13.16 (11)8.20 (18)7.80 (15) Index 3.02 (37)-2.36 (18)1.88 (16)9.05 (11)13.05 (12)8.08 (21)7.69 (18) Median 2.62 -5.36 -2.86 5.18 10.10 6.27 5.97 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 Mar-2019 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 Investment 15.97 (13)-18.18 (31)4.37 (24)5.98 (45)0.15 (18)4.82 (34) Index 15.99 (13)-18.28 (34)4.33 (25)5.94 (47)0.12 (19)4.84 (33) Median 14.01 -18.95 3.26 5.69 -1.07 3.91 Strategy Review Vanguard Extended Mkt Index (VEXAX) | S&P Completion Index As of June 30, 2019 26 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 10.84 12.20 0.79 105.39 8 101.74 4 Index 9.91 11.24 0.78 100.00 8 100.00 4 90 Day U.S. Treasury Bill 1.37 0.23 N/A 4.24 12 -3.96 N/A Historical Statistics 5 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 4.45 12.09 0.35 97.63 11 86.12 9 Index 2.65 12.45 0.20 100.00 11 100.00 9 90 Day U.S. Treasury Bill 0.85 0.26 N/A 2.95 19 -1.87 1 Risk and Return 3 Years Investment Index 9.6 9.9 10.2 10.5 10.8 11.1 11.4 Return (%)10.8 11.0 11.2 11.4 11.6 11.8 12.0 12.2 12.4 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Return (%)12.0 12.1 12.2 12.3 12.4 12.5 12.6 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 Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 11 7 (64%)4 (36%)0 (0%)0 (0%)¾ Index 20 2 (10%)5 (25%)10 (50%)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 Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 3 1 (33%)2 (67%)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 June 30, 2019 27 Peer Group Analysis - IM International Large Cap Growth Equity (MF) -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 3.87 (71)2.78 (39)1.91 (53)5.56 (39)10.84 (21)5.34 (29)4.45 (26) Index 3.22 (85)0.99 (62)1.80 (56)4.75 (54)9.91 (42)4.61 (41)2.65 (62) Median 4.36 1.95 2.14 4.97 9.61 4.12 3.08 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 Mar-2019 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 Investment 13.20 (27)-12.59 (44)-0.84 (82)-2.82 (58)1.03 (19)4.23 (42) Index 10.44 (92)-11.41 (27)0.80 (39)-2.39 (49)-1.08 (62)5.06 (12) Median 12.38 -12.68 0.24 -2.51 -0.68 4.10 Strategy Review American Funds EuroPacific Gr R6 (RERGX) | MSCI AC World ex USA As of June 30, 2019 28 Historical Statistics 3 Years Return Standard Deviation Sharpe Ratio Up Market Capture Up Quarters Down Market Capture Down Quarters Investment 3.69 2.26 1.04 90.07 9 35.57 3 Index 2.31 2.99 0.34 100.00 9 100.00 3 90 Day U.S. Treasury Bill 1.37 0.23 N/A 17.50 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 3.27 2.49 0.98 84.69 14 55.26 6 Index 2.95 2.91 0.73 100.00 15 100.00 5 90 Day U.S. Treasury Bill 0.85 0.26 N/A 10.30 19 -10.95 1 Risk and Return 3 Years Investment Index 2.4 2.7 3.0 3.3 3.6 3.9 4.2 Return (%)1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 Risk (Standard Deviation %) Risk and Return 5 Years Investment Index 2.8 2.9 3.0 3.1 3.2 3.3 3.4 Return (%)2.4 2.5 2.6 2.7 2.8 2.9 3.0 Risk (Standard Deviation %) 3 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (MF) 0.0 25.0 50.0 75.0 100.0Return Percentile Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 Total Period 5-25 Count 25-Median Count Median-75 Count 75-95 Count Investment 15 14 (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 Rank9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 6/19 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%)12 (60%)8 (40%)0 (0%)¾ Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of June 30, 2019 29 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 ReturnQTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR Investment 2.79 (82)6.90 (81)7.58 (49)3.91 (14)3.69 (3)3.85 (5)3.27 (10) Index 3.08 (41)7.85 (24)7.87 (28)3.65 (29)2.31 (54)3.22 (35)2.95 (26) Median 3.04 7.48 7.56 3.42 2.39 3.07 2.67 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 Mar-2019 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 Investment 3.70 (15)0.29 (86)0.64 (5)-0.33 (64)-0.90 (7)0.48 (24) Index 2.94 (72)1.64 (11)0.02 (65)-0.16 (30)-1.46 (47)0.39 (39) Median 3.23 0.99 0.09 -0.25 -1.48 0.34 Strategy Review Dodge & Cox Income Fund (DODIX) | Blmbg. Barc. U.S. Aggregate Index As of June 30, 2019 30 Comparative Performance 1 YR 3 YR 5 YR 7 YR 10 YR 15 YR Vanguard Equity Inc;Adm (VEIRX)9.73 (32)11.05 (30)9.01 (15)12.49 (8)14.29 (3)9.10 (17) S&P 500 Index 10.42 (26)14.19 (3)10.71 (2)13.98 (1)14.70 (1)8.75 (24) Difference -0.69 -3.14 -1.70 -1.49 -0.41 0.35 IM Equity Income (MF) Median 7.12 10.06 7.26 10.83 12.07 7.89 Vanguard 500 Idx;Adm (VFIAX)10.38 (15)14.15 (9)10.68 (5)13.94 (4)14.67 (3)8.73 (5) S&P 500 Index 10.42 (7)14.19 (2)10.71 (1)13.98 (1)14.70 (1)8.75 (2) Difference -0.04 -0.04 -0.03 -0.04 -0.03 -0.02 IM S&P 500 Index (MF) Median 10.11 13.81 10.30 13.50 14.21 8.40 MFS Growth;R6 (MFEKX)14.95 (12)20.02 (21)14.54 (10)16.89 (9)N/A N/A Russell 1000 Growth Index 11.56 (36)18.07 (45)13.39 (30)15.76 (25)16.28 (18)9.90 (28) Difference 3.39 1.95 1.15 1.13 N/A N/A IM U.S. Large Cap Growth Equity (MF) Median 10.56 17.71 12.53 14.98 15.09 9.26 Vanguard Ext MI;Adm (VEXAX)2.04 (15)13.16 (11)7.80 (15)12.84 (9)14.66 (7)9.48 (8) S&P Completion Index 1.88 (16)13.05 (12)7.69 (18)12.73 (10)14.55 (7)N/A Difference 0.16 0.11 0.11 0.11 0.11 N/A IM U.S. SMID Cap Core Equity (MF) Median -2.86 10.10 5.97 11.01 12.85 8.15 American Funds EuPc;A (AEPGX)1.57 (59)10.47 (29)4.10 (33)8.07 (22)7.79 (36)7.21 (14) MSCI AC World ex USA 1.80 (56)9.91 (42)2.65 (62)6.85 (54)7.03 (57)6.33 (50) Difference -0.23 0.56 1.45 1.22 0.76 0.88 IM International Large Cap Growth Equity (MF) Median 2.14 9.61 3.08 6.92 7.39 6.32 Dodge & Cox Income (DODIX)7.58 (49)3.69 (3)3.27 (10)3.58 (5)4.90 (20)4.81 (7) Blmbg. Barc. U.S. Aggregate Index 7.87 (28)2.31 (54)2.95 (26)2.62 (50)3.90 (69)4.27 (37) Difference -0.29 1.38 0.32 0.96 1.00 0.54 IM U.S. Broad Market Core Fixed Income (MF) Median 7.56 2.39 2.67 2.62 4.26 4.11 Comparative Performance Manager Composite Performance Comparison As of June 30, 2019 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 Vanguard Equity-Income (VEIRX)0.17 297,085 505 0.17 % of Assets Vanguard Index 500 Admiral (VFIAX)0.05 732,551 366 0.05 % of Assets MFS Growth Fund (MFEKX)0.62 383,592 2,378 0.62 % of Assets Vanguard Extended Mkt Index (VEXAX)0.10 675,656 676 0.10 % of Assets Total Domestic Equity Composite 0.19 2,088,885 3,925 American Funds EuroPacific Gr R6 (RERGX)0.49 623,083 3,053 0.49 % of Assets Total International Equity Composite 0.49 623,083 3,053 Dodge & Cox Income Fund (DODIX)0.43 1,566,164 6,735 0.43 % of Assets Total Fixed Income Composite 0.43 1,566,164 6,735 R&D 32,552 - Total Fund Composite 0.32 4,310,683 13,713 Okeechobee Municipal Firefighters' Pension Fund Fee Analysis As of June 30, 2019 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 $5,200,000 Market Value6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 $2,470,212 $4,310,683 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending June 30, 2019 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 30,2019 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. 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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. 38