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EMPLOYEES PENSION PLAN - PERFORMANCE REVIEW - FIRST QUARTER 102 W. Whiting Street, Suite 400, Tampa, FL 33602-5140 ♦ Tel: 813/218-5000 ♦ www.captrustadv.com Eric W. Bailey, CFA John J. Griffith Managing Principal Senior Investment Consultant CITY OF CLEARWATER EMPLOYEES PENSION PLAN PERFORMANCE REVIEW MARCH 31, 2013 TABLE OF CONTENTS Important Disclaimer Information 1 Capital Markets Review 2 Fund Overview 3 Performance Review Total Fund 4 Domestic Equity 5 International Equity 6 Fixed Income 7 Real Estate 8 Appendix 9 This report has been created as a courtesy for the clients of CapTrust Advisors. The information contained herein was taken from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Performance Comparison Page Information: Shaded areas represent where the investment objective was achieved either by: 1) The investment return versus the index; 2) The investment return universe ranking (The lower the number the better the ranking) Due to methodologies utilized by our systems, the performance results presented are calculated and presented beginning on the last day of an account's inception month. Results do not include the interim period from an account's inception date to an account's first month-end. For example, for an account that has an inception date of March 15, this report begins measuring performance as of March 31. Omission of performance during this interim period is likely to result in different performance figures than if the interim period's performance was included in this report. When applicable, investment results depicted represent historical net of fees performance. Past performance is no guarantee of future performance. This report is not the official record of your account. However, it has been prepared to assist you with your investment planning and is for information purposes only. Your Custodial Client Statement is the official record of your account. Therefore, if there are any discrepancies between this report and your Client Statement, you should rely on the Client Statement and call your Financial Advisors if you have any questions. Transactions requiring tax consideration should be reviewed carefully with your accountant or tax tax advisor. This is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by CapTrust Advisors. Indices are unmanaged and you cannot invest directly in an index. For index definitions, please see the Capital Markets Review. City of Clearwater Employees Pension Fund Important Disclaimer Information 1 2 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. IndexQTRYTD1 Yr3 Yr5 Yr10 Yr Domestic Fixed Income 3 Month T-Bill0.02%0.02%0.12%0.11%0.34%1.75% Barclays Capital 1-3 year Gov't0.09%0.09%1.10%1.99%2.96%3.28% Barclays Capital Interm Gov't0.14%0.14%2.26%3.91%3.70%4.02% Barclays Capital Interm Credit0.57%0.57%6.54%6.86%6.97%5.57% Barclays Capital Interm Govt/Cred0.26%0.26%3.53%4.75%4.61%4.49% Barclays Capital Aggregate Bond-0.12%-0.12%3.77%5.52%5.47%5.02% Domestic Equity Standard & Poor's 50010.61%10.61%13.96%12.67%5.81%8.53% Dow Jones Industrial Average11.93%11.93%13.37%13.32%6.50%8.94% Dow Jones US Total Full Cap10.91%10.91%14.15%12.82%6.27%9.32% Dow Jones US Select REIT 7.43%7.43%14.02%17.35%6.32%12.23% Russell 1000 - Large Cap10.96%10.96%14.43%12.93%6.15%8.97% Russell 1000 Growth - Large Cap9.54%9.54%10.09%13.06%7.30%8.62% Russell 1000 Value - Large Cap12.31%12.31%18.77%12.74%4.85%9.18% Russell Midcap12.96%12.96%17.30%14.62%8.37%12.27% Russell Midcap Growth11.51%11.51%12.76%14.23%7.98%11.53% Russell Midcap Value14.21%14.21%21.49%14.96%8.53%12.57% Russell 2000 - Small Cap12.39%12.39%16.30%13.45%8.24%11.52% Russell 2000 Growth - Small Cap13.21%13.21%14.52%14.75%9.04%11.61% Russell 2000 Value - Small Cap11.63%11.63%18.09%12.12%7.29%11.29% International Equity MSCI EAFE5.23%5.23%11.79%5.49%-0.40%10.19% MSCI World7.87%7.87%12.53%9.08%2.83%9.46% MSCI EM -1.57%-1.57%2.31%3.59%1.39%17.41% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg3.10%3.10%6.83%7.67%5.57%6.07% 40% S&P 500 / 60% Barclays Agg4.17%4.17%7.85%8.38%5.61%6.42% 50% S&P 500 / 50% Barclays Agg5.25%5.25%8.87%9.10%5.64%6.78% 60% S&P 500 / 40% Barclays Agg6.32%6.32%9.88%9.81%5.67%7.13% 70% S&P 500 / 30% Barclays Agg7.39%7.39%10.90%10.53%5.71%7.48% 3 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. CapitalMarketsOverview Theend-of-the-yearmomentumcontinuedintothefirstquarterof2013asthemajoraveragesrecordedtheirbest startinmorethanadecade.StrengthintheU.S.dollarhelpedserveasacatalystasinvestorsperceivedmore opportunitiesintheU.S.marketsthanforeignmarkets.TheU.S.avoideditsfiscalcliff,butEuropecontinuesto strugglewithdebtproblemsandfearlingersoveraslowingeconomyinChina. Investorsseemedtotakeinstrideslightincreasesintaxesinexchangeforanoffsetintheformofrestrained governmentspending.ThesequesteredspendingcutstookeffectMarch1,butareexpectedtohaveonlymodest impactonreducingthefederaldeficit.FortheirparttheFederalReserveannounceditwouldmaintainan accommodativestancethroughatleast2013.Unemploymentremainsstubbornlyhighdespiteadeclining average.Thehousingmarketcontinuestorecoverandmanufacturingshowedsignsofstrengtheningledbyan increaseinexports. TheS&P500Index(S&P500)andtheDowJonesIndustrialAverage(DJIA)eachsetall-timehighnumbers duringthequarter.TheS&P500setitsrecordonthelastdayofthequarter,closingat1569.19,upmorethan 10%forthequarter.TheDJIAclosedabove14578,upmorethan11%forthequarter.TheNASDAQComposite index(NASDAQ),althoughstillwelloffitsdot.comeramarkethighs,wasupmorethan8%forthequarter. InvestorsinEuropehadtodealwithyetanotherroundofdebttalksfocusedonGreece.Greece’stwolargest banksneededimmediaterestructuringoreachfacedthepossibilityofcollapse.TheEuropeanCentralBank (ECB)onceagainwasforcedtostepin,thistimetobackstopthebanksandsupportthebondmarkets.Marketsin GermanyandFrancepostedlowsingledigitreturnsforthequarterasinvestorsremainedsensitivetonear-term economicweaknessandpoliticaluncertainty. InAsia,fearofaslowingChineseeconomytookitstolloninvestors.TheShanghaiCompositeadvancedmore than5.1%inJanuaryonnewsofasofteconomiclanding,onlytoretreat5.4%inMarchonnewstheeconomy mayslowtoomuch,movingtheindexintonegativeterritoryforthequarter.Emergingmarketsreactedin-kind postingtheirbiggestfirstquarterlosssince2008. FixedincomeratesintheU.S.remainedinaverynarrowrangeastheFedcontinueditspledgetokeepan accommodativestanceuntilemploymentimprovesandtheeconomybeginsamoremoderateexpansion.The yieldonthe10-yearnoteincreasedby23basispointsinJanuaryto1.98%,butfell12basispointsinFebruary andclosedoutthequarteryielding1.85%. Thecommoditymarketstrailedequitiesthisquarterinlargepartduetoastrugglingglobaleconomy.Thelackof anyinflationaryconcernscoupledwithinvestorconfidenceandstrengthintheU.S.dollarkeptgoldpricesin check.Goldwasdown4.8%andposteditssecondconsecutivequarterlyloss.Softerthanexpectedmanufacturing datafromChinakeptpressureoncopperprices.Copperwasdown6.8%thisquarterandnearaneightmonthlow. TheU.S.DollarIndexpostedconsecutivemonthlygainsandwasup4.1%forthequarter.TheU.S.dollarhas nowmovedhigherversustheEuroforeightstraightmonths. 4 CAPITAL MARKETS REVIEW –MARCH 31, 2013 This and/or the accompanying information was prepared by or obtained from sources which Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:U.S.DepartmentofCommerce,WellsFargoSecurities,LLC Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -4% -3% -2% -1% 0% 1% 2% 3% 4% -40% -30% -20% -10% 0% 10% 20% 30% 40% 200520062007200820092010201120122013 U.S. Retail Sales Month-over-Month and Year-over-Year Percent Change Retail Sales: Feb @ 1.1% (Right Axis) Yr/Yr Percent Change: Feb @ 4.6% (Left Axis) -1,000 -800 -600 -400 -200 0 200 400 600 -1,000 -800 -600 -400 -200 0 200 400 600 050607080910111213 Nonfarm Employment Change Change in Employment, In Thousands Monthly Change: Mar @ 88.0 Thousand Unemploymentremainsstubbornlyhigh Thelabormarketadded88,000nonfarmjobsinMarchandaveraged168,000overthepastthreemonths. Theemploymentsituationcontinuestomakemodestimprovements.However,54.4%ofrespondentstoa recentConsumerConfidenceBoardsurveyviewedjobsas“notsoplentiful”and36.2%viewedjobsas “hardtoget”.Constructionandbusinessservicesaddedthemostjobsthisquarter. Consumerscontinuetospend,justmoreselectively.Retailsalesjumped1.1%inFebruary(latestnumbers available).Discretionaryspendingposteditsweakestquartersince2010. 5 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:FactSet,ZephyrStyleAdvisor,MSCIBarra,Standard&Poor’s Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Outperformance of the Russell 3000 Value vs. Russell 3000 Growth by Quarter 3Q08 3Q09 4Q12 1Q13 4Q11 1Q10 2Q12 4Q08 2Q103Q12 1Q11 2Q09 2Q114Q10 3Q11 3Q10 1Q12 4Q09 2Q08 -10.00% -5.00% 0.00% 5.00% 10.00% Stockssoaredtounprecedentedheightsas2013openedwithdouble-digitgainsformostmajorindices Midandsmallcapsoutpacedlargecaps. Valueoutpacedgrowthinthelargeandmidcapspacebutlaggedinsmallcaps. Value(asmeasuredbytheRussell3000Value)hasnowoutperformedGrowthineachofthelastfourquartersby acumulative8.3%(18.7%vs.10.4%). First Quarter 2013 Domestic Equity Returns ValueGrowth Russell 1000 12.311.09.5 Russell Midcap14.213.011.5 Russell 2000 11.612.413.2 -10-50510 6 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:FactSet,ZephyrStyleAdvisor,MSCIBarra,Standard&Poor’s Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Defensivesectorledthewayasallsectorspostedpositivereturnsforthefirstquarter HealthCare,ConsumerStaplesandUtilitieswerethetopperformers. MaterialsandITsectorssignificantlylaggedthebroadermarket. Netflix,BestBuy,andHewlett-PackardwerestrongindividualperformerswhileJ.C.PenneyandApple continuedtostruggle. 4.59 4.79 9.45 10.17 10.61 10.67 11.42 12.15 13.02 14.58 15.81 Information Technology Materials Telecommunications Energy S&P 500 Industrials Financials Consumer Discretionary Utilities Consumer Staples Health Care S&P 500 First Quarter 2013 Sector Returns 7 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:IMF,WellsFargoSecurities,LLC,BloombergLPandWellsFargoAdvisors,LLC Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Japanembracesquantitativeeasingpolicy Japanislookingtoimplementanaggressivequantitativeeasingpolicy,similartothatusedbytheU.S.to stimulatetheeconomyandaccelerategrowthinthatcountry. Japaniscurrentlybenefittingfromaweakeryen,andposteditsbestquarterinnearly15years.TheNikkei 225wasup20.1%. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2000200220042006200820102012 Nikkei: 225 Stock Average Index Index Base: May 1949 = 100 Nikkei: Mar @ 12,244.0 Optimismintheinternationalmarketsendsindisappointment Europe’sweakeconomicrecoveryisstillfacingsignificantheadwinds. MixedeconomicnewsfromChinacausedtheAsianrimmarkets(ex-Japan)tostallandproducedalossin theemergingmarkets. Internationalmarketswereofftoagoodstartthisquarter,butcouldn’tovercomethepersistentproblemsin EuropeandChina. -14% -12% -10% -8% -6% -4% -2% 0% 2% 4% 6% -14% -12% -10% -8% -6% -4% -2% 0% 2% 4% 6% 2000200220042006200820102012 Eurozone Real GDP Bars = Compound Annual Rate Line = Yr/Yr % Change Compound Annual Growth: Q4 @ -2.3% Year-over-Year Percent Change: Q4 @ -0.9% 1200 1300 1400 1500 1600 1700 1800 MSCI World Index ex U.S. 8 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:FactSet,FederalReserve,BloombergLP,WellsFargoAdvisors Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Yielddemandandrecordhighequitymarkets droveinvestorstoriskiersecurities Europeanbankingconcernsbroughtmoney intotheTreasurymarket,butyieldsstill endedupforthequarter. IntheU.S.,sequestration,budgetissues,and loomingdebtceilingconcernsdidlittleto movetheU.Sdebtmarkets. TheFedincreaseditsmonthlyTreasurybond purchasesby$45billionthisquarter,keeping pressureoninterestrates.SeveralFed membersstatedthispurchasingpolicywould remainthroughmuchoftheyear. Investorslookingforbetteryieldsmovedthe high-yieldandpreferredmarketshigher.The high-yieldmarketwasupover2.85%forthe quarter. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2‐Yr Treasury10‐Yr Treasury30‐Yr Treasury U.S. Treasury Yields ‐5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% YTD201220112010 Barclays Capital U.S. Aggregate Barclays U.S. Long Govt/Credit BofA ML US High Yield BofA ML Emerging Mkt Corp Total Return Comparison FederalReservepolicystancestillaheavyinfluenceonthebondmarket Treasuryyieldsmovedhigheratthestartofthequarter,butsuccumbedtotheFed’scommitmentto continuedeasingandclosedthequarterlittlechanged. The10-yearNoteendedthequarterup11basispoints,yielding1.85%.The30-yearNoteendedup15basis points,closingtoyield3.10%. 1.6% 1.7% 1.8% 1.9% 2.0% 2.1% U.S. 10‐Year Treasury Yield 9 CAPITAL MARKETS REVIEW –MARCH 31, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Source:BloombergLP,FactSet,andWellsFargoAdvisors,LLC Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Commodity markets turn in mixed performances AstrongU.S.dollarputpressureoncommoditypricesthisquarter. WeakeremergingmarketperformancetiedtoChina’sslowergrowthalsokeptpressureon commodityprices. Goldslippedforthesecondstraightquarterasrisingequitypricesoutweighedgold’svalueasa safehaveninvestment. AnimprovingU.S.economyhelpedboostoilprices. Commodities Current 3 Months Ago 1 Year Ago 3/31/201312/31/20123/31/2012 Gold (per Troy ounce)$1,594.80 $1,674.80 $1,669.30 Oil (per barrel)$97.23 $91.82 $103.02 Copper (per pound)$3.40 $3.64 $3.79 110 115 120 125 130 135 140 145 150 155 DJ UBS Commodity Index 10 Russell1000ValuecontainsthoseRussell1000(largercapitalization)securitieswithaless-than-averagegrowthorientation. Securitiesinthisindexgenerallyhavelowerprice-to-bookandprice-to-earningsratios,higherdividendyields,andlower forecastedgrowthrates. Russell1000Growth containsthoseRussell1000(largercapitalization)securitieswithagreater-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavehigherprice-to-bookandprice-to-earningsratios,lowerdividendyields, andhigherforecastedgrowthrates. Russell2000ValuecontainsthoseRussell2000(smallercapitalization)securitieswithaless-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavelowerprice-to-bookandprice-to-earningsratiosthanthoseintheRussell 2000GrowthIndex. Russell2000Growth containsthoseRussell2000(smallercapitalization)securitieswithagreater-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavehigherprice-to-bookandprice-to-earningsratiosthanthoseintheRussell 2000ValueIndex. MSCIEAFEistheMorganStanleyCapitalInternationalEurope,Australia,FarEastIndexdesignedtomeasurethe performanceofdevelopedstockmarketsintheseareas. BarclaysAggBondistheLehmanBrothersAggregateBondIndex.ThisindexincludesU.S.government,corporateand mortgage-backedsecuritiesratedinvestmentgradeorhigherwithmaturitiesupto30years. S&P500isarepresentativesampleof500leadingcompaniesinleadingindustriesoftheU.S.economy. DJWilshireREITisintendedasabroadmeasureoftheperformanceofpubliclytradedrealestateequity.Theindexis comprisedofcompanieswhosecharteristheequityownershipandoperationofcommercialrealestate. CAPITAL MARKETS REVIEW –MARCH 31, 2013 CAPITAL MARKET INDEX RETURNS Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. 19941995199619971998199920002001200220032004200520062007200820092010201120122013 Russell DJ Russell Russell Russell DJ Russell BarclaysRussell DJ DJ DJ Russell BarclaysRussell Russell DJ Russell Russell BEST 1000Wilshire 100010002000Wilshire 2000Agg2000Wilshire Wilshire Wilshire 1000Agg10002000Wilshire 20002000 ValueREITValueGrowthGrowthREITValueBondGrowthREITREITREITGrowthBondGrowthGrowthREITValueGrowth 8.06%38.35%37.04%35.18%38.71%43.09%31.04%13.96%10.27%48.53%33.14%14.00%36.13%11.81%5.24%37.21%29.09%9.37%18.05%13.21% Russell Russell Russell Russell DJ DJ Russell Russell Russell Russell DJ BarclaysRussell Russell 1000100010002000Wilshire Wilshire 2000200020002000Wilshire Agg10001000 GrowthGrowthGrowthValueREITREITValueValueValueGrowthREITBondValueValue 2.66%37.53%23.12%33.35%28.57%33.16%22.83%12.36%3.60%46.02%22.25%13.54%26.34%11.17%-28.92%34.47%28.07%7.84%17.51%12.31% DJ Russell Russell BarclaysBarclaysRussell Russell Russell Russell Russell Russell Russell Russell Wilshire 10002000AggAgg20001000200020001000200010002000 REITGrowthValueBondBondValueValueValueGrowthValueValueGrowthValue 2.66%37.19%22.94%31.78%20.33%27.30%11.63%8.44%-11.42%39.16%20.25%7.05%23.48%7.05%-36.85%31.78%24.50%2.64%17.32%11.63% Russell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell BarclaysDJ Russell DJ 2000100010001000100010001000Wilshire 100010001000AggWilshire 1000Wilshire GrowthValueGrowthValueValueValueValueREITValueGrowthValueBondREITGrowthREIT 1.31%31.04%21.64%30.49%15.63%21.04%7.01%-5.59%-15.52%36.06%16.49%5.26%22.25%6.97%-37.00%28.46%16.71%2.11%17.12%10.61% Russell Russell Russell DJ BarclaysRussell Russell Russell Russell Russell Russell Russell Russell 200020002000Wilshire Agg10002000100020001000100010001000 ValueValueValueREITBondValueGrowthValueGrowthGrowthValueValueGrowth -1.55%25.75%21.37%19.67%8.67%7.35%-9.10%-9.22%-15.94%30.03%14.31%4.91%15.79%5.49%-38.44%26.46%15.51%0.39%16.00%9.54% Russell BarclaysRussell Russell Russell DJ Russell Russell Russell Russell Russell Russell Russell Russell DJ 1000Agg200020002000Wilshire 10002000200010002000200020001000Wilshire ValueBondGrowthGrowthGrowthREITGrowthValueGrowthValueGrowthValueGrowthGrowthREIT -1.99%18.48%11.26%12.95%1.23%-2.57%-13.96%-11.88%-22.09%29.76%10.87%4.71%13.35%-0.17%-38.54%20.58%15.06%-2.91%15.26%7.43% Russell DJ BarclaysRussell BarclaysRussell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell 2000Wilshire Agg2000Agg1000100010001000200010002000Wilshire 100020002000 GrowthREITBondValueBondGrowthGrowthGrowthGrowthGrowthGrowthValueREITValueValueGrowth -2.44%12.24%6.36%9.68%-6.46%-0.83%-22.42%-20.42%-27.89%28.67%6.30%4.15%9.07%-9.78%-39.20%19.69%7.75%-5.50%14.59%5.23% BarclaysBarclaysDJ Russell Russell Russell BarclaysBarclaysBarclaysBarclaysDJ BarclaysBarclaysBarclaysBarclays AggAggWilshire 200020002000AggAggAggAggWilshire AggAggAggAgg WORST BondBondREITValueGrowthGrowthBondBondBondBondREITBondBondBondBond -2.92%11.55%3.61%2.06%-17.00%-1.49%-22.43%-22.00%-30.27%4.11%4.34%2.43%4.33%-17.56%-45.09%5.93%6.54%-12.14%4.22%-0.12% MSCI EAFE MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE S&P 500 S&P 500 S&P 500 S&P 500 MSCI EAFE MSCI EAFE S&P 500 S&P 500 S&P 500 MSCI EAFE S&P 500 MSCI EAFE S&P 500 S&P 500 MSCI EAFE S&P 500 MSCI EAFE S&P 500 MSCI EAFE S&P 500 S&P 500 S&P 500 MSCI EAFE S&P 500 S&P 500 MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE 11 -60 -40 -20 0 20 40 60 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Domestic Equity vs. Fixed IncomeMean1 Standard Deviation2 Standard Deviations Fixed Income Outperforming Domestic Equity OutperformingDomestic Equity vs. Fixed Income -60 -40 -20 0 20 40 60 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Domestic Equity vs. Foreign Equity Mean 1 Standard Deviation 2 Standard Deviations Foreign Equity Outperforming Domestic Equity OutperformingDomestic Equity vs. Foreign Equity CAPITAL MARKETS REVIEW –MARCH 31, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Aug '82 –DJIA 776 Black Monday -Oct '87 Asian Crisis Invasion of Iraq 12 CAPITAL MARKETS REVIEW –MARCH 31, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -40 -20 0 20 40 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Large Cap vs. Small CapMean1 Standard Deviation2 Standard Deviations Small Cap Outperforming Large Cap OutperformingLarge Cap vs. Small Cap -60 -40 -20 0 20 40 60 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Large Value vs. Large Growth Mean 1 Standard Deviation 2 Standard Deviations Growth Outperforming Value OutperformingLarge Value vs. Large Growth 13 CAPITAL MARKETS REVIEW –MARCH 31, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -60 -40 -20 0 20 40 60 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Small Value vs. Small GrowthMean1 Standard Deviation2 Standard Deviations Growth Outperforming Value OutperformingSmall Value vs. Small Growth Growth Outperforming Value Outperforming -80 -60 -40 -20 0 20 40 60 80 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Domestic Equity vs. REITMean1 Standard Deviation2 Standard Deviations REIT Outperforming Domestic Equity OutperformingDomestic Equity vs. REIT 14 CAPITAL MARKETS REVIEW –MARCH 31, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 120 12/79 - 12/8012/80 - 12/8112/81 - 12/8212/82 - 12/8312/83 - 12/8412/84 - 12/8512/85 - 12/8612/86 - 12/8712/87 - 12/8812/88 - 12/8912/89 - 12/9012/90 - 12/9112/91 - 12/9212/92 - 12/9312/93 - 12/9412/94 - 12/9512/95 - 12/9612/96 - 12/9712/97 - 12/9812/98 - 12/9912/99 - 12/0012/00 - 12/0112/01 - 12/0212/02 - 12/0312/03 - 12/0412/04 - 12/0512/05 - 12/0612/06 - 12/0712/07 - 12/0812/08 - 12/0912/09 - 12/1012/10 - 12/1112/11-12/12 Fixed Income vs. REITMean1 Standard Deviation2 Standard Deviations REIT Outperforming Fixed Income OutperformingFixed Income vs. REIT 15 FIRM:WellsFargoAdvisorsisthetradenameusedbytwoseparate,registeredbroker/dealersandnonbankaffiliatesof WellsFargo&Company,providingcertainretailsecuritiesbrokerageservices:WellsFargoAdvisors,LLC.,member FINRA,SIPC,andWellsFargoFinancialNetwork,LLC,memberFINRA,SIPC.Investmentsinsecuritiesandinsurance productsare:NOTFDIC-INSURED/NOTBANK-GUARANTEED/MAYLOSEVALUE. CONFLICTSOFINTEREST:Toreviewimportantinformationaboutcertainrelationshipsandpotentialconflictsof interestthatmayexistbetweenWellsFargoAdvisors,itsaffiliates,andthecompaniesthatarementionedinthisreport, pleasevisittheourresearchdisclosurepageatwww.wellsfargoadvisors.com/gotoresearchdisclosuresorcallyour FinancialAdvisor. STATEMENTOFOPINION:Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsources whichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Anyopinionsexpressedor impliedhereinarenotnecessarilythesameasthoseofWellsFargoAdvisorsoritsaffiliatesandaresubjecttochange withoutnotice.Thereporthereinisnotacompleteanalysisofeverymaterialfactinrespecttoanycompany,industryor security.Anymarketpricesareonlyindicationsofmarketvaluesandaresubjecttochange.Thematerialhasbeen preparedorisdistributedsolelyforinformationpurposesandisnotasolicitationoranoffertobuyanysecurityor instrumentortoparticipateinanytradingstrategy.Additionalinformationisavailableuponrequest. ASSETCLASSSUITABILITY:Stocksofsmallcompaniesaretypicallymorevolatilethanstocksoflargercompanies. Theyofteninvolvehigherrisksbecausetheymaylackthemanagementexpertise,financialresources,product diversificationandcompetitivestrengthstoendureadverseeconomicconditions.High-yield,non-investmentgradebonds areonlysuitableforaggressiveinvestorswillingtotakegreaterrisks,whichcouldresultinlossofprincipalandinterest payments.Global/InternationalinvestinginvolvesrisksnottypicallyassociatedwithUSinvesting,includingcurrency fluctuations,politicalinstability,uncertaineconomicconditionsanddifferentaccountingstandards. PASTPERFORMANCE:Pastperformanceisnotanindicationoffutureresults. ASSETCLASSPERFORMANCEREPRESENTATIONS:LongTermTreasuries=BCTreasuryLong;Municipals= BCMunicipal;ForeignBonds=SalomonWorldBIG–IB;USGovt/Credit=BCGovt/Credit;MtgeBackedSecurities= MLMortgageMaster;CorporateBonds=SalomonCorporate;90DayT-Bills=Salomon;JapaneseStocks=Salomon JapanBMI;HighYieldBonds=MLHighYieldMaster;SmallCapUSValue=RU2000Value;MidCapUSStocks= RUMidcap;LargeCapUSValue=RU1000Value;EuropeanStocks=SalomonEuropeBMI;SmallCapUSStocks= RU2000;LgCapUSGrowth=RU1000Growth;LatinAmericanStocks=SalomonLatinAmericaBMI;SmCapUS Growth=RU2000Growth BROADEQUITYMARKET&SECTORPERFORMANCEREPRESENTATIONS:Large-Cap=S&P500or Russell1000;Mid-Cap=RUMidcap;Small-Cap=RU2000;International=MSCIEAFE DATASOURCES:Informationfoundinthisdocumentwasderivedfromthefollowingsources:ZephyrAssociates StyleAdvisor,InformaM-Watch,InvestorForce,BarclaysCapital,MSCIBarra,Standard&Poor’s,andMorningstar. CAPITAL MARKETS REVIEW –MARCH 31, 2013 GENERAL DISCLOSURE STATEMENT Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 16 CAPITAL MARKETS REVIEW –MARCH 31, 2013 GENERAL DISCLOSURE STATEMENT DowJonesIndustrialAverage-Thisindexiscomprisedof30"blue-chip"USstocksselectedfortheirhistoryofsuccessful growthandwideinterestamonginvestors.TheDJIArepresentsabout20%ofthetotalmarketvalueofallUSstocksandabout25%oftheNYSEmarketcapitalization.Itisaprice-weightedarithmeticaverage,withthedivisoradjusted toreflectstocksplitsandtheoccasionalstockswitchesintheindex. NASDAQComposite-Acap-weightedindexcomprisedofallcommonstocksthatarelistedontheNASDAQStockMarket(NationalAssociationofSecuritiesDealersAutomatedQuotationsystem). S&P500-Abroad-basedmeasurementofchangesinstockmarketconditionsbasedontheaverageperformanceof500widely heldcommonstocks.Thisindexdoesnotcontainthe500largestcompaniesnorthemostexpensivestockstradedintheU.S.Whilemanyofthestocksareamongthelargest,thisindexalsoincludesmanyrelativelysmallcompanies.Thisindexconsistsofapproximately380industrial,40utility,10transportationand70financialcompanieslistedonU.S.marketexchanges.Itisacapitalization-weightedindex(stockpricetimesnumberofsharesoutstanding),calculatedonatotalreturnbasiswithdividendsreinvested. S&P500/CitigroupGrowth-TheS&P/CitigroupGrowthtrackstheperformanceofthosestocksintheS&P500withlowerbook-to-priceratios.Acap-weightedindex,itisrebalancedsemi-annually,basedonitsprice-to-bookratiosandmarket capitalizationsatthecloseoftradingonemonthprior.TheindexisadjustedeachmonthtoreflectchangesintheS&P500.Thisindexismoreheavilyweightedintheconsumernon-cyclical,healthcare,andtechnologysectorsthantheS&P500. S&P500/CitigroupValue-TheS&PCitigroup/ValuetrackstheperformanceofthosestocksintheS&P500withhigherbook-to-priceratios.Acap-weightedindex,itisrebalancedsemi-annuallyonJanuary1andJuly1,basedonitsbook-to-priceratiosandmarketcapitalizationsatthecloseoftradingonemonthprior.TheindexisadjustedeachmonthtoreflectchangesintheS&P500.ThisindextendstobemoreheavilyconcentratedintheenergyandfinancialsectorsthantheS&P500. Russell1000-The1000largestcompaniesintheRussell3000index,basedonmarketcapitalization. Russell1000Growth-AsegmentoftheRussell1000withagreater-than-averagegrowthorientation.Companiesinthisindexhavehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthanthe Russell1000Valueindex. Russell1000Value-RepresentsasegmentoftheRussell1000withaless-than-averagegrowthorientation.Companiesin thisindexhavelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvaluesthantheRussell1000GrowthIndex. RussellMidCap-Theindexconsistingofthebottom800securitiesintheRussell1000asrankedbytotalmarketcapitalization,anditrepresentsover35%oftheRussell1000totalmarketcap. Russell2000-The2000smallestcompaniesintheRussell3000index. Russell2000Growth-AsegmentoftheRussell2000withagreater-than-averagegrowthorientation.Companiesinthisindex havehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthantheRussell2000Valueindex. Russell2000Value-AsegmentoftheRussell2000withaless-than-averagegrowthorientation.Companiesinthisindexhavelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvaluesthantheRussell2000Growthindex. Russell2500-Theindexconsistingofthebottom500stocksintheRussell1000(asrankedbymarketcapitalization)andallofthestocksintheRussell2000.Thisindexisintendedtobeusedasameasureofsmalltomedium/smallstockperformance,anditrepresentsover22%oftheRussell3000totalmarketcap. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 17 CAPITAL MARKETS REVIEW –MARCH 31, 2013 GENERAL DISCLOSURE STATEMENT MSCIEAFE-Amarketcapitalization-weightedindexrepresentingalloftheMSCIdevelopedmarketsoutsideNorthAmerica.Itcomprises20ofthe22countriesintheMSCIWorld.These20countriesincludethe14EuropeancountriesintheMSCIEuropeandthe6PacificcountriesintheMSCIPacific.Thisindexiscreatedbyaggregatingthe20differentcountry indexes,allifwhicharecreatedseparately. MSCIWorld-Thismarketcapitalization-weightedindexrepresentsall22oftheMSCIdevelopedmarketsintheworld.Itiscreatedbyaggregatingthe22differentcountryindexes,allifwhicharecreatedseparately. MSCIEmergingMarketsFree(EMF)-Amarketcapitalization-weightedindexrepresenting26oftheemergingmarketsintheworld.Severalfactorsareusedtodesignatewhetheracountryisconsideredtobeemergingvs.developed,themostcommonofwhichisGrossDomesticProductPerCapita.The"Free"aspectindicatesthatthisindexincludesonlysecuritiesthatareallowedtobepurchasedbyglobalinvestors.Thisindexiscreatedbyaggregatingthe26differentcountry indexes,allifwhicharecreatedseparately. BarclaysCapitalGovernment/Credit-ThisindexincludesallbondsthatareintheBarclaysCapitalGovernmentBondand theBarclaysCapitalCreditBondindices. BarclaysCapitalGovernmentIntermediate-AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwithmaturities of1and10years. BarclaysCapitalAggregateBond-ThisindexismadeupoftheBarclaysCapitalGovernment/Credit,theMortgage-BackedSecurities,andtheAsset-BackedSecuritiesindices.Allissuesintheindexareratedinvestmentgradeorhigher,haveatleastoneyeartomaturity,andhaveanoutstandingparvalueofatleast$100million. BarclaysCapitalGovernmentLongTerm-AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwithmaturitiesof10yearsorgreater. BarclaysCapitalMunicipalBond-Thismarketcapweightedindexincludesinvestmentgradetax-exemptbondsandisclassified intofourmainsectors:GeneralObligation,Revenue,Insured,andPre-refunded.Tobeincludedinthisindex,theoriginaltransactionsizeofabondmusthavebeengreaterthan$50million. MerrillLynchConvertibles-Theconvertiblesecuritiesusedinthisindexspanallcorporatesectorsandmusthaveaparamountoutstandingof$25millionormore.Thematuritymustbeatleastoneyear.Thecouponrangemustbeequaltoorgreater thanzeroandallqualityofbondsareincluded.Excludedfromthisindexarepreferredequityredemptionstocks.Whenthecomponentbondsofthisindexconvertintocommonstock,theconvertedsecuritiesaredroppedfromtheindex. MerrillLynchHighYieldMaster-Market-capweightedindexprovidingabroad-basedmeasureofbondsintheUSdomesticbondmarketratedbelowinvestmentgradebutnotindefault.IncludesonlyissueswithacreditratingofBB1orbelow asratedbyMoody’sand/orS&P,atleast$100millioninfacevalueoutstandingandaremainingtermtofinalmaturityequaltoorgreaterthanoneyear. DowJonesWilshireREITIndex-AmeasurementofequityREITsandRealEstateOperatingCompanies.Nospecial-purposeorhealthcareREITsareincluded.Itisamarketcapitalization-weightedindexforwhichreturnsarecalculatedmonthlyusingbuyandholdmethodology;itisrebalancedmonthly. Citigroup3MonthTreasuryBill-Representingthemonthlyreturnequivalentsofyieldaveragesthatarenotmarkedtomarket,thisindexisanaverageofthelastthreethree-monthTreasurybillissues. 50/50Blend(S&P500/BCIGC)–Ablendedbenchmarkconsistingof50%S&P500and50%BarclaysCapitalGovernment/CreditIntermediateindices. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 3/31/13 Manager Market Value Actual % Policy % ING Investment Mgmt NTGI-QM R1000V Eagle Capital Management Manning and Napier Artisan Partners Wedge Capital Mgmt Atlanta Capital Mgmt Systematic Financial Mgt Riverbridge Partners Total Domestic Equity Earnest Partners WHV Eaton Vance Mgmt Total International Equity Dodge & Cox Western Asset Management Co. Security Lending Income Account In House Account Total Domestic Fixed Income Multi Employer Property Trust Security Capital Molpus Woodlands Group Hancock Total Real Estate Total Fund 105,151,712.05 37,700,263.80 34,869,917.38 34,770,272.08 47,059,557.37 52,223,563.68 13,670,680.78 14,139,570.84 27,082,563.18 366,668,101.16 40,137,283.37 32,866,335.47 37,906,611.13 110,910,229.97 115,326,733.03 91,525,876.61 219,557.23 7,024,666.25 214,096,833.12 25,274,163.51 45,395,429.89 6,204,597.00 3,173,464.00 80,047,654.40 771,722,818.65 13.63 4.89 4.52 4.51 6.10 6.77 1.77 1.83 3.51 47.51 5.20 4.26 4.91 14.37 14.94 11.86 0.03 0.91 27.74 3.28 5.88 0.80 0.41 10.37 100.00 42.00 18.00 30.00 10.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 12/31/12 - 3/31/13 Manager Name Beginning Value Net Contrib Invest Fees Invest Gain/Loss Ending Value ING Investment Mgmt NTGI-QM R1000V Eagle Capital Management Manning and Napier Artisan Partners Wedge Capital Mgmt Atlanta Capital Mgmt Systematic Financial Mgt Riverbridge Partners Equity Earnest Partners WHV Eaton Vance Mgmt International EQ Comp Dodge & Cox Western Asset Management Co. Security Lending Income Account In House Account Fixed Income Comp Multi Employer Property Trust Security Capital Molpus Woodlands Group Hancock Real Estate Comp Total Fund 96,395,518 95,898,746 0 0 43,164,941 44,830,558 12,220,225 12,699,892 24,129,334 329,339,214 39,234,794 31,677,463 37,898,548 108,810,805 114,596,389 91,744,356 150,838 4,348,844 210,840,428 24,777,799 42,556,962 6,204,597 3,173,464 76,712,823 725,703,270 -704 -66,500,000 33,238,964 33,103,630 -817 -563 -221 -146 -311 -160,168 -6,553 -859 0 -7,412 -854 -1,951 68,216 2,675,822 2,741,233 0 -264 0 0 -264 2,573,389 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8,756,898 8,301,518 1,630,954 1,666,642 3,895,434 7,393,568 1,450,676 1,439,825 2,953,540 37,489,055 909,043 1,189,732 8,063 2,106,838 731,198 -216,529 503 0 515,172 496,364 2,838,731 0 0 3,335,095 43,446,160 105,151,712 37,700,264 34,869,917 34,770,272 47,059,557 52,223,564 13,670,681 14,139,571 27,082,563 366,668,101 40,137,283 32,866,335 37,906,611 110,910,230 115,326,733 91,525,877 219,557 7,024,666 214,096,833 25,274,164 45,395,430 6,204,597 3,173,464 80,047,654 771,722,819 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending March 31, 2013 Net of Fee Return Name Value $(000) Periods Ending 3/31/13 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date Total Fund Policy Index Domestic Equity Comp S&P 500 Large Cap Equity Comp R1000 Eagle Capital Management Russell 1000 Value ING Investment Mgmt R1000G Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Mid Cap Equity Comp R Mid Cap Artisan Partners R Mid Cap G Wedge Capital Mgmt R Mid Cap V Small Cap Equity Comp R2000 Atlanta Capital Mgmt R2000V Riverbridge Partners R2000G Systematic Financial Mgt R2000V International EQ Comp MSCI EAFE Earnest Partners MSCI EAFE Eaton Vance Mgmt MSCI Emg Mkts WHV MSCI EAFE Fixed Income Comp BC Agg 771,723 366,668 212,492 34,870 105,152 34,770 37,700 99,283 47,060 52,224 54,893 13,671 27,083 14,140 110,910 40,137 37,907 32,866 214,097 6.00 5.56 11.42 10.61 10.65 10.96 9.08 9.54 12.60 12.31 12.83 12.95 9.02 11.52 16.49 14.21 11.91 12.39 11.87 11.63 12.24 13.20 11.34 11.63 1.94 5.23 2.32 5.23 0.02 -1.57 3.76 5.23 0.24 -0.12 10.45 9.90 15.27 13.95 13.57 14.41 10.88 10.09 19.61 18.77 17.35 17.28 8.81 12.77 26.27 21.47 18.26 16.30 15.80 18.08 20.75 14.52 16.52 18.08 7.74 11.79 10.17 11.79 3.87 2.30 9.51 11.79 4.95 3.77 10.49 10.00 14.75 12.67 12.33 12.93 14.11 13.06 12.63 12.74 18.39 14.62 18.04 14.24 18.65 14.95 16.90 13.45 17.70 12.11 14.15 12.11 5.37 5.49 8.12 5.49 3.86 3.59 6.23 5.49 5.94 5.52 7.46 5.81 8.24 5.81 5.73 6.15 7.54 7.30 4.93 4.85 10.82 8.37 11.68 7.98 11.75 8.53 10.74 8.24 13.41 7.28 8.97 7.28 1.64 -0.40 6.62 5.47 6.33 5.91 5.98 5.01 4.90 5.20 6.68 6.08 7.85 6.18 9.68 5.94 6.38 4.59 10.48 3.87 5.12 3.87 3.50 2.09 6.58 5.94 8.56 9.43 10.27 8.53 8.93 8.97 10.04 8.63 12.21 12.27 13.77 11.53 10.31 10.19 5.46 5.03 6.03 6.38 5.76 4.27 4.41 4.60 6.11 3.25 8.18 7.89 5.85 5.85 9.31 9.51 11.02 10.05 10.08 10.06 4.91 5.46 11.32 9.41 5.03 5.46 1.53 1.46 12.56 11.65 9.17 6.68 7.44 4.50 9.25 8.41 12.14 8.47 20.83 16.81 8.48 8.47 5.70 5.12 2.78 -1.49 0.40 -0.18 -0.01 -1.49 6.88 7.16 12/31/87 12/31/87 12/31/87 12/31/87 3/31/88 3/31/88 1/31/13 1/31/13 12/31/87 12/31/87 1/31/13 1/31/13 6/30/07 6/30/07 3/31/88 3/31/88 7/31/01 7/31/01 2/28/07 2/28/07 8/31/03 8/31/03 8/31/03 8/31/03 9/30/10 9/30/10 8/31/03 8/31/03 5/31/01 5/31/01 4/30/08 4/30/08 4/30/08 4/30/08 4/30/08 4/30/08 12/31/87 12/31/87 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending March 31, 2013 Net of Fee Return Name Value $(000) Periods Ending 3/31/13 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date Dodge & Cox BC Agg In House Account 3-month T-Bill Security Lending Income Account 3-month T-Bill Western Asset Management Co. BC Agg Real Estate Comp Policy Index Hancock NCREIF Timberland Index Molpus Woodlands Group NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI 115,327 7,025 220 91,526 80,048 3,173 6,205 25,274 45,395 0.64 -0.12 0.00 0.02 0.33 0.02 -0.24 -0.12 4.35 5.85 0.00 1.53 0.00 1.53 2.00 2.68 6.67 7.41 5.76 3.77 -0.00 0.08 3.43 0.08 4.14 3.77 8.32 12.85 1.14 9.01 5.10 10.79 11.83 13.82 6.20 5.52 -0.00 0.09 8.30 0.09 5.69 5.52 14.19 15.61 16.32 17.08 7.07 5.47 -0.00 0.31 9.88 0.31 6.03 5.47 6.81 5.94 -0.00 1.51 8.43 1.51 6.28 5.94 -0.00 1.66 -0.00 2.47 5.76 5.02 0.73 3.73 6.62 1.68 5.54 5.20 3.11 4.21 -1.10 9.01 -0.73 5.36 9.81 13.99 4.28 4.97 2/29/04 2/29/04 12/31/87 12/31/87 6/30/03 6/30/03 9/30/04 9/30/04 4/30/08 4/30/08 5/31/12 5/31/12 6/30/11 6/30/11 9/30/10 9/30/10 4/30/08 4/30/08 22 City of Clearwater Employees Pension Fund Executive Summary Table March 31, 2013 Net of Fee Return Name Value $(000) Calendar Years YTD 2012 2011 2010 2009 2008 Total Fund Policy Index Domestic Equity Comp S&P 500 Large Cap Equity Comp R1000 Eagle Capital Management Russell 1000 Value ING Investment Mgmt R1000G Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Mid Cap Equity Comp R Mid Cap Artisan Partners R Mid Cap G Wedge Capital Mgmt R Mid Cap V Small Cap Equity Comp R2000 Atlanta Capital Mgmt R2000V Riverbridge Partners R2000G Systematic Financial Mgt R2000V International EQ Comp MSCI EAFE Earnest Partners MSCI EAFE Eaton Vance Mgmt MSCI Emg Mkts WHV MSCI EAFE Fixed Income Comp BC Agg 771,723 366,668 212,492 34,870 105,152 34,770 37,700 99,283 47,060 52,224 54,893 13,671 27,083 14,140 110,910 40,137 37,907 32,866 214,097 6.00 5.56 11.42 10.61 10.65 10.96 9.08 9.54 12.60 12.31 12.83 12.95 9.02 11.52 16.49 14.21 11.91 12.39 11.87 11.63 12.24 13.20 11.34 11.63 1.94 5.23 2.32 5.23 0.02 -1.57 3.76 5.23 0.24 -0.12 13.89 13.17 18.37 15.98 17.02 16.42 18.95 15.26 18.09 17.50 22.00 17.26 20.82 15.80 23.16 18.48 17.61 16.34 12.53 18.05 17.83 14.59 23.50 18.05 17.61 17.90 17.18 17.90 18.55 18.62 16.97 17.90 6.53 4.22 -0.36 1.81 -0.21 2.12 -0.90 1.51 3.04 2.63 -0.77 0.39 -0.10 -1.56 0.07 -1.66 -0.33 -1.38 2.07 -4.17 10.20 -5.50 4.27 -2.92 -9.91 -5.50 -15.04 -11.73 -6.88 -11.73 -19.27 -18.17 -13.64 -11.73 5.94 7.84 17.73 13.96 22.53 15.05 16.87 16.10 17.10 16.72 15.75 15.51 28.03 25.49 33.15 26.39 23.30 24.76 29.27 26.85 25.98 24.51 35.50 24.51 18.37 8.21 16.61 8.21 23.33 19.19 17.58 8.21 7.37 6.54 30.28 26.00 32.14 26.45 24.59 28.42 24.43 37.21 20.35 19.69 45.33 40.47 51.38 46.30 38.51 34.20 33.51 27.19 26.83 20.57 35.72 20.57 57.93 32.46 55.54 32.46 67.01 79.02 55.98 32.46 12.37 5.93 -27.10 -27.73 -37.76 -36.99 -35.23 -37.60 -33.18 -38.43 -36.86 -36.85 -41.79 -41.46 -42.87 -44.32 -34.89 -38.45 -38.63 -33.80 -19.52 -28.92 -40.71 -28.92 -47.94 -43.06 2.54 5.24 23 City of Clearwater Employees Pension Fund Executive Summary Table March 31, 2013 Net of Fee Return Name Value $(000) Calendar Years YTD 2012 2011 2010 2009 2008 Dodge & Cox BC Agg In House Account 3-month T-Bill Security Lending Income Account 3-month T-Bill Western Asset Management Co. BC Agg Real Estate Comp Policy Index Hancock NCREIF Timberland Index Molpus Woodlands Group NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI 115,327 7,025 220 91,526 80,048 3,173 6,205 25,274 45,395 0.64 -0.12 0.00 0.02 0.33 0.02 -0.24 -0.12 4.35 5.85 0.00 1.53 0.00 1.53 2.00 2.68 6.67 7.41 7.85 4.22 -0.00 0.07 6.93 0.07 5.07 4.22 11.28 15.41 0.77 7.75 4.70 10.94 16.22 17.55 5.10 7.84 0.00 0.08 2.85 0.08 7.23 7.84 8.85 11.62 12.99 15.99 6.86 8.56 7.53 6.54 0.00 0.13 21.70 0.13 7.09 6.54 30.51 24.96 31.62 29.12 14.53 5.93 0.00 0.16 17.48 0.16 9.24 5.93 24.68 29.20 24.68 29.20 1.37 5.24 0.00 1.80 2.43 1.80 3.92 5.24 24 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 3/13 High 1st Qt Median 3rd Qt Low T Total Fund Net Ret Rank 1 Policy Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 7.44 6.29 5.33 4.57 1.79 6.00 34 5.56 46 12.02 10.77 10.00 8.93 5.94 10.45 34 9.90 54 9.35 7.81 7.05 6.18 3.53 7.31 40 8.25 16 11.46 10.06 9.04 8.42 3.82 10.49 12 10.00 26 18.54 15.56 14.13 13.40 6.70 18.60 4 17.79 8 7.46 6.31 5.27 4.57 2.87 7.46 5 5.81 30 6.32 5.28 4.58 3.97 2.76 5.95 11 4.79 41 6.98 5.88 5.28 4.79 4.02 6.33 13 5.91 23 7.65 6.79 6.05 5.60 4.80 7.24 11 7.06 15 7.63 6.61 6.05 5.54 4.84 6.95 16 7.11 11 9.81 8.38 7.91 7.20 6.08 8.56 21 9.43 8 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% T1 T1 T 1 T1 T 1 T 1 T 1 T1 T1 T1 T 1 25 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Total Fund Public Sponsors Years Ending December High 1st Qt Median 3rd Qt Low T Total Fund Net Ret Rank 1 Policy Index Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 7.44 6.29 5.33 4.57 1.79 6.00 34 5.56 46 14.91 13.81 12.41 11.35 6.10 13.89 22 13.17 32 5.13 1.90 0.96 -0.41 -3.16 -0.36 74 1.81 28 16.71 14.05 12.68 11.19 5.93 17.73 3 13.96 28 28.49 22.06 19.19 15.40 4.28 30.28 2 26.00 8 -4.20 -20.21 -24.45 -27.29 -30.39 -27.10 74 -27.73 79 11.17 9.01 7.77 6.50 4.61 7.20 61 6.69 70 16.46 14.48 12.51 10.61 7.20 11.76 59 16.59 4 10.75 8.46 6.62 5.36 4.01 6.71 48 8.25 27 14.38 12.07 10.21 8.56 5.76 9.90 56 13.48 7 27.82 23.15 20.14 17.35 11.40 19.63 54 25.03 11 -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% T1 T1 T1 T 1 T 1 T1 T1 T 1 T1 T 1 T 1 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2013 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Qtr YTD 1 Year 3 Year 5 Year Incept 12/31/87 Total FundPolicy Index Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Total Fund Policy Index Rank ING Investment Mgmt R1000G Rank NTGI-QM R1000V R1000V Rank Eagle Capital Management Russell 1000 Value Manning and Napier Russell 1000 Value Artisan Partners R Mid Cap G Rank Wedge Capital Mgmt R Mid Cap V Rank 6.00 5.56 34 9.08 9.54 61 12.60 12.31 17 9.02 11.52 77 16.49 14.21 15 6.00 5.56 34 9.08 9.54 61 12.60 12.31 17 9.02 11.52 77 16.49 14.21 15 10.45 9.90 34 10.88 10.09 42 19.61 18.77 15 8.81 12.77 81 26.27 21.47 9 10.50 10.00 12 14.11 13.06 21 12.63 12.74 34 18.04 14.24 5 18.65 14.95 9 7.46 5.81 5 7.54 7.30 34 4.93 4.85 74 11.68 7.98 9 11.75 8.53 6 9.31 9.51 11.32 9.41 1.53 1.46 4.91 5.46 5.03 5.46 9.17 6.68 7.44 4.50 12/31/87 12/31/87 6/30/07 1/31/13 1/31/13 7/31/01 2/28/07 $771,722,819 $105,151,712 $37,700,264 $34,869,917 $34,770,272 $47,059,557 $52,223,564 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Atlanta Capital Mgmt R2000V Rank Systematic Financial Mgt R2000V Rank Riverbridge Partners R2000G Rank Earnest Partners MSCI EAFE Rank WHV MSCI EAFE Rank Eaton Vance Mgmt MSCI Emg Mkts Rank Dodge & Cox BC Agg Rank Western Asset Management Co. BC Agg Rank Security Lending Income Account 3-month T-Bill In House Account 3-month T-Bill 11.87 11.63 80 11.34 11.63 86 12.24 13.20 57 2.32 5.23 66 3.76 5.23 45 0.02 -1.57 37 0.64 -0.12 32 -0.24 -0.12 86 0.33 0.02 0.00 0.02 11.87 11.63 80 11.34 11.63 86 12.24 13.20 57 2.32 5.23 66 3.76 5.23 45 0.02 -1.57 37 0.64 -0.12 32 -0.24 -0.12 86 0.33 0.02 0.00 0.02 15.80 18.08 70 16.52 18.08 60 20.75 14.52 10 10.17 11.79 43 9.51 11.79 52 3.87 2.30 63 5.76 3.77 46 4.14 3.77 67 3.43 0.08 -0.00 0.08 17.70 12.11 1 14.15 12.11 56 8.12 5.49 24 6.23 5.49 43 3.97 3.59 81 6.20 5.52 53 5.69 5.52 65 8.30 0.09 -0.00 0.09 13.41 7.28 1 8.97 7.28 58 7.07 5.47 33 6.03 5.47 53 10.45 0.31 -0.00 0.31 12.14 8.47 8.48 8.47 20.83 16.81 2.78 -1.49 -0.01 -1.49 0.53 -0.18 5.76 5.02 5.54 5.20 6.91 1.68 0.73 3.73 8/31/03 8/31/03 9/30/10 4/30/08 4/30/08 4/30/08 2/29/04 9/30/04 6/30/03 12/31/87 $13,670,681 $14,139,571 $27,082,563 $40,137,283 $32,866,335 $37,906,611 $115,326,733 $91,525,877 $219,557 $7,024,666 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Multi Employer Property Trust NCREIF ODCE Rank Security Capital Wilshire RESI Rank Molpus Woodlands Group NCREIF Timberland Index Rank Hancock NCREIF Timberland Index Rank 2.00 2.68 72 6.67 7.41 14 0.00 1.53 88 0.00 1.53 88 2.00 2.68 72 6.67 7.41 14 0.00 1.53 88 0.00 1.53 88 5.10 10.79 79 11.83 13.82 42 1.14 9.01 90 16.32 17.08 25 9.81 13.99 4.28 4.97 -0.73 5.36 -1.10 9.01 9/30/10 4/30/08 6/30/11 5/31/12 $25,274,164 $45,395,430 $6,204,597 $3,173,464 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 3/31/13 Apple Inc Intl Business McHn Google Inc Oracle Systems Corp Gilead Sciences Inc Home Depot Inc Hca Holdings Inc Visa Inc Amgen Lincoln Natl Corp In GICS Sector% Port Information Technology Information Technology Information Technology Information Technology Health Care Consumer Discretionary Health Care Information Technology Health Care Financials 2.25 1.96 1.60 1.27 1.24 1.04 1.00 1.00 0.98 0.97 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 5.35 2.80 16.52 16.47 6.89 14.63 11.96 23.67 0.00 1.70 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity CompS&P 500 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity Comp S&P 500 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 11.42 10.61 329,339 -160 37,489 366,668 11.42 10.61 329,339 -160 37,489 366,668 15.27 13.95 328,560 -10,194 48,302 366,668 14.75 12.67 255,585 -14,840 125,922 366,668 8.24 5.81 266,580 -14,840 114,928 366,668 10.27 8.53 175,636 -14,840 205,872 366,668 11.02 10.05 32,236 -14,840 349,272 366,668 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 31 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 3/31/13 Cash & Equiv $10,430 2.84% Domestic Equity $356,238 97.16% Periods from 12/87 to 3/13 Alpha Beta R-Squared 0.15 1.09 0.94 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 E 1 T Annualized Standard Deviation% E Domestic Equity Comp 1 S&P 500 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.02 10.05 3.86 17.97 15.99 1.24 0.40 0.39 0.00 0.24 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 32 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low E Domestic Equity Comp Net Ret Rank 1 S&P 500 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 15.05 12.39 10.77 9.29 1.99 11.42 38 10.61 54 22.38 17.00 13.97 10.40 2.05 15.27 37 13.95 50 14.54 11.21 9.67 7.36 0.19 10.84 33 11.21 25 18.61 14.42 12.72 11.18 4.92 14.75 22 12.67 52 29.30 24.87 21.79 19.90 12.70 23.88 32 20.97 63 11.99 8.94 6.70 5.32 1.51 8.24 33 5.81 68 8.64 6.38 4.75 3.59 0.89 5.76 33 3.91 69 9.08 6.84 5.61 4.73 2.48 5.98 41 5.01 66 10.20 8.34 6.83 5.82 4.01 7.52 39 5.83 74 10.46 8.43 7.04 6.01 4.23 7.34 45 5.92 80 14.16 12.28 10.14 8.73 6.95 10.27 46 8.53 82 -5% 0% 5% 10% 15% 20% 25% 30% 35% E1 E1 E1 E 1 E 1 E 1E 1 E1 E 1 E 1 E 1 33 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low E Domestic Equity Comp Net Ret Rank 1 S&P 500 Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 15.05 12.39 10.77 9.29 1.99 11.42 38 10.61 54 22.81 17.93 15.83 11.91 1.87 18.37 21 15.98 47 8.08 2.15 -0.17 -4.23 -12.26 -0.21 50 2.12 26 33.09 25.10 16.93 13.65 4.87 22.53 32 15.05 65 54.50 36.93 28.85 24.27 9.47 32.14 39 26.45 64 -16.98 -33.54 -37.02 -41.08 -49.18 -37.76 57 -36.99 49 22.30 10.26 5.43 0.38 -7.56 7.18 36 5.52 47 23.20 17.55 14.71 10.21 1.87 13.01 62 15.81 38 15.94 10.55 7.04 4.66 -0.10 8.12 42 4.89 71 25.46 18.28 13.09 10.07 3.44 13.18 49 10.87 68 58.30 39.42 31.53 27.66 17.72 33.74 42 28.69 66 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% E1 E1 E1 E 1 E 1 E1 E1 E1 E1 E1 E 1 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.05 0.88 0.75 -3.83 11.42 15.27 15.27 13.16 1.06 0.10 0.98 1.15 14.26 2.23 0.56 2 2 -2.75 10.61 13.95 13.95 12.26 1.13 3 9 1.10 1.00 0.75 -16.27 14.43 -0.21 36.09 19.49 1.06 0.33 0.98 0.75 13.84 2.80 0.74 4 8 -13.86 12.58 1.15 30.69 18.29 0.69 6 14 1.11 0.98 0.70 -23.59 18.14 -36.90 55.86 22.98 1.06 0.55 0.99 0.34 7.48 2.83 0.92 8 12 -21.93 15.93 -38.07 49.75 21.63 0.25 32 69 1.09 1.05 0.55 -23.59 22.08 -37.76 55.86 17.97 1.09 0.15 0.94 0.40 6.57 4.72 0.24 29 72 -21.93 21.32 -38.07 49.75 15.99 0.39 35 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios Annualized Rate of Return 8.010.412.815.217.620.022.424.827.229.632.0 4.0 5.8 7.6 9.4 11.2 13.0 14.8 16.6 18.4 20.1 21.9 E S MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp S Standard & Poors 500 Median 14.752219.4948 12.675218.2928 12.7219.84 Annualized Rate of Return 14.015.817.619.421.223.024.826.628.430.232.0 -2.0 -0.2 1.5 3.4 5.2 7.0 8.8 10.6 12.4 14.2 16.0 E S MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp S Standard & Poors 500 Median 8.243322.9847 5.816821.6327 6.7023.33 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 3/31/13 Apple Inc Intl Business McHn Google Inc Oracle Systems Corp Gilead Sciences Inc Home Depot Inc Visa Inc Amgen Monsanto Co New Comcast Corp New GICS Sector% Port Information Technology Information Technology Information Technology Information Technology Health Care Consumer Discretionary Information Technology Health Care Materials Consumer Discretionary 5.50 4.78 3.92 3.11 3.02 2.55 2.44 2.39 2.29 2.27 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 5.18 2.78 12.79 17.63 13.18 14.86 5.18 28.40 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Large Cap Equity CompR1000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Large Cap Equity Comp R1000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 10.65 10.96 192,294 -158 20,356 212,492 10.65 10.96 192,294 -158 20,356 212,492 13.57 14.41 195,590 -8,186 25,087 212,492 12.33 12.93 111,514 35,180 65,798 212,492 5.73 6.15 119,642 35,180 57,671 212,492 8.93 8.97 114,344 35,180 62,968 212,492 10.08 10.06 18,032 35,180 159,280 212,492 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 37 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 3/31/13 Cash & Equiv $4,875 2.29% Domestic Equity $207,617 97.71% Periods from 3/88 to 3/13 Alpha Beta R-Squared 0.04 0.98 0.96 Annualized Return% 0.02.04.06.08.010.012.014.016.018.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 L1 T Annualized Standard Deviation% L Large Cap Equity Comp 1 R1000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 10.08 10.06 3.84 16.48 16.46 1.24 0.38 0.38 0.00 -0.01 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 38 City of Clearwater Employees Pension Fund Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low L Large Cap Equity Comp Net Ret Rank 1 R1000 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 12.30 11.32 10.69 10.40 8.50 10.65 51 10.96 39 18.64 14.67 13.99 12.41 8.20 13.57 66 14.41 36 13.60 11.36 11.18 10.29 3.70 10.02 77 11.10 54 15.25 13.05 12.68 11.50 8.88 12.33 63 12.93 30 26.16 21.72 21.02 20.00 17.83 20.61 67 21.55 29 8.66 6.40 5.93 5.51 4.09 5.73 73 6.15 36 6.72 4.42 4.00 3.48 1.63 4.46 24 4.13 38 7.12 5.35 5.07 4.41 3.34 4.90 67 5.20 34 8.00 6.34 5.91 5.59 4.43 6.06 37 6.17 34 8.31 6.72 6.03 5.93 4.91 6.14 40 6.28 40 11.08 9.82 9.02 8.55 8.00 8.93 50 8.97 50 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% L1 L1 L 1 L1 L1 L1 L1 L1L1L1 L1 39 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low L Large Cap Equity Comp Net Ret Rank 1 R1000 Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 12.30 11.32 10.69 10.40 8.50 10.65 51 10.96 39 22.13 16.53 15.98 13.80 9.31 17.02 19 16.42 31 6.26 2.57 2.00 0.77 -5.46 -0.90 83 1.51 61 25.54 16.74 15.17 14.31 12.13 16.87 23 16.10 32 48.71 32.08 27.23 26.43 20.95 24.59 87 28.42 43 -27.27 -34.79 -36.90 -37.60 -43.42 -35.23 27 -37.60 75 12.68 6.42 5.55 4.74 0.21 7.76 16 5.77 38 22.23 17.52 15.82 15.50 11.82 11.52 95 15.46 77 12.00 8.98 6.19 4.92 2.60 8.63 28 6.27 45 20.23 14.71 11.31 10.82 9.44 11.24 51 11.39 48 40.82 32.25 28.77 28.54 23.97 31.37 27 29.90 36 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% L1 L1 L1 L1 L 1 L1 L1 L 1 L1 L1 L1 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.02 1.34 0.25 -4.20 10.65 13.57 13.57 13.44 1.05 -0.35 0.99 1.00 12.79 1.54 -0.44 1 3 -3.12 10.96 14.41 14.41 12.58 1.14 4 8 1.00 1.04 0.42 -15.13 14.01 -0.90 31.89 19.10 1.01 -0.16 0.99 0.64 12.09 1.50 -0.34 3 9 -14.68 12.90 0.91 31.95 18.82 0.68 8 12 0.98 1.00 0.55 -20.96 16.91 -37.57 49.31 21.84 0.98 -0.08 0.99 0.25 5.49 1.97 -0.26 7 13 -22.48 16.49 -38.26 51.57 22.18 0.26 32 68 0.99 0.98 0.51 -20.96 20.12 -37.57 49.31 16.48 0.98 0.04 0.96 0.38 6.37 3.11 -0.01 28 72 -22.48 21.88 -38.26 51.57 16.46 0.38 41 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios Annualized Rate of Return 10.011.813.615.417.219.020.822.624.426.228.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 L 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp 1 R1000 Median 12.336319.1066 12.933018.8259 12.6818.69 Annualized Rate of Return 12.014.016.018.020.022.024.026.028.030.032.0 2.5 3.2 3.9 4.6 5.2 5.9 6.6 7.3 8.0 8.7 9.4 L 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 1 R1000 Median 5.737321.8455 6.153622.1862 5.9321.66 42 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 3/31/13 Apple Inc Intl Business McHn Google Inc Oracle Systems Corp Gilead Sciences Inc Home Depot Inc Visa Inc Amgen Monsanto Co New Comcast Corp New GICS Sector% Port Information Technology Information Technology Information Technology Information Technology Health Care Consumer Discretionary Information Technology Health Care Materials Consumer Discretionary 5.50 4.78 3.92 3.11 3.02 2.55 2.44 2.39 2.29 2.27 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 5.18 2.78 12.79 17.63 13.18 14.86 5.18 28.40 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 ING Investment MgmtR1000G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 ING Investment Mgmt R1000G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 9.08 9.54 96,396 -1 8,757 105,152 9.08 9.54 96,396 -1 8,757 105,152 10.88 10.09 107,893 -13,002 10,262 105,152 14.11 13.06 55,612 10,382 39,158 105,152 7.54 7.30 57,437 10,382 37,333 105,152 10.04 8.63 39,048 10,382 55,722 105,152 11.32 9.41 17,469 10,382 77,301 105,152 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 43 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 3/31/13 Cash & Equiv $2,425 2.31% Domestic Equity $102,726 97.69% Periods from 12/87 to 3/13 Alpha Beta R-Squared 0.61 0.84 0.93 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 i 1 T Annualized Standard Deviation% i ING Investment Mgmt 1 R1000G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.32 9.41 3.86 16.48 18.75 1.24 0.45 0.30 0.00 0.23 Asset Allocation ($000) Risk/Return Analysis 44 City of Clearwater Employees Pension Fund Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 11.80 10.46 9.53 8.00 5.96 9.08 61 9.54 49 19.77 13.36 9.74 7.03 2.03 10.88 42 10.09 47 19.06 12.32 9.96 7.77 3.22 12.13 26 10.56 36 19.23 13.95 12.41 11.12 8.67 14.11 21 13.06 34 28.06 21.69 20.24 19.27 17.29 20.81 37 21.29 33 12.76 7.99 6.97 4.99 3.01 7.54 34 7.30 39 10.41 6.76 5.69 4.61 3.58 7.19 20 5.92 44 9.77 7.18 6.29 5.28 3.66 6.68 38 6.08 56 10.01 8.29 7.25 6.43 5.37 8.00 33 6.94 63 9.31 8.15 7.21 6.41 5.34 7.82 36 6.28 79 12.20 10.93 9.64 9.08 7.52 10.04 38 8.63 82 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% i1 i1 i 1 i 1 i1 i1 i 1 i1 i 1 i 1 i 1 45 City of Clearwater Employees Pension Fund Large Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 11.80 10.46 9.53 8.00 5.96 9.08 61 9.54 49 23.92 18.01 15.41 13.92 11.07 18.95 17 15.26 52 10.07 2.92 0.47 -3.37 -7.36 3.04 24 2.63 27 26.63 19.99 17.20 14.52 10.68 17.10 55 16.72 60 65.77 41.08 35.27 29.76 24.19 24.43 94 37.21 42 -28.66 -35.73 -38.77 -42.26 -48.87 -33.18 17 -38.43 48 25.50 19.60 12.84 8.72 4.35 17.10 34 11.82 58 22.62 13.28 9.76 5.65 -5.08 7.14 66 9.09 54 16.36 12.02 8.86 5.72 2.59 12.02 25 5.27 79 20.01 14.70 10.78 7.53 4.67 10.27 55 6.30 81 50.05 35.87 31.11 27.77 20.65 30.00 59 29.75 60 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% i1 i1 i1 i1 i 1 i 1 i 1 i1 i 1 i1 i1 46 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 14.11 28 13.06 42 17.57 12.83 10.91 8.86 2.14 12.80 25 11.35 41 19.18 14.42 12.94 10.61 2.78 16.01 13 14.74 21 23.59 18.72 16.39 13.93 5.87 18.39 27 17.50 34 34.62 28.11 24.11 21.88 8.72 24.32 47 25.27 40 0% 5% 10% 15% 20% 25% 30% 35% 40% i1i 1 i1 i 1 i 1 ING Investment Mgmt Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% -1.3 3.4 5.5 -4.6-4.8 0.6 -0.7 0.70.5 -0.1 -0.8 0.3 0.6 0.3 -0.8 2.0 -0.4 1.7 -0.1 -0.4 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R1000G 47 City of Clearwater Employees Pension Fund Risk Measure Summary ING Investment Mgmt Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 2 2 1.09 1.09 0.25 -4.39 9.08 10.88 10.88 13.40 1.05 0.07 0.98 0.80 10.25 2.09 0.38 2 2 -4.01 9.54 10.09 10.09 12.63 0.79 4 8 1.04 0.99 0.50 -12.86 17.02 3.04 35.01 19.06 1.00 0.23 0.99 0.73 13.94 1.96 0.49 4 8 -13.14 14.69 2.63 35.01 18.89 0.69 8 12 0.97 0.95 0.50 -18.51 17.02 -32.48 43.38 20.38 0.92 0.16 0.96 0.35 7.85 4.42 -0.04 7 13 -22.79 16.32 -34.27 49.75 21.79 0.32 30 71 0.95 0.79 0.53 -18.51 23.26 -33.74 44.38 16.48 0.84 0.61 0.93 0.45 8.84 5.33 0.23 33 68 -22.79 26.75 -45.64 49.75 18.75 0.30 48 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios Annualized Rate of Return 12.014.016.018.020.022.024.026.028.0 5.0 6.5 8.0 9.5 11.0 12.5 14.0 15.5 17.0 18.5 20.0 i 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i ING Investment Mgmt 1 R1000G Median 14.112119.0646 13.063418.8944 12.4119.74 Annualized Rate of Return 16.017.218.419.620.822.023.224.425.626.828.0 -2.0 -0.2 1.5 3.4 5.2 7.0 8.8 10.6 12.4 14.2 16.0 i 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i ING Investment Mgmt 1 R1000G Median 7.543420.3824 7.303921.7945 6.9722.32 49 City of Clearwater Employees Pension Fund Equity Summary Statistics ING Investment Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR1000G 62 102,726,286 87,125,617 24,949,852 1.22 19.56 21.79 0.99 2.99 43.26 16.75 577 94,039,215 7,099,871 1.73 19.92 20.70 0.94 3.88 44.33 14.58 Ten Largest Holdings Apple Inc Intl Business McHn Google Inc Oracle Systems Corp Gilead Sciences Inc Home Depot Inc Visa Inc Amgen Monsanto Co New Comcast Corp New Market Value% of PortfolioQuarterly Ret 5,647,959 4,910,166 4,022,556 3,194,189 3,102,651 2,614,657 2,508,537 2,457,165 2,348,155 2,331,135 5.50 4.78 3.92 3.11 3.02 2.55 2.44 2.39 2.29 2.27 -16.49 11.83 11.93 -2.94 33.23 13.44 12.29 19.41 12.04 12.39 Ten Best Performers Celgene Corp Hca Holdings Inc Gilead Sciences Inc Blackrock Inc Discovery Communicat Cbs Corp BE Aerospace Inc Hershey Foods Corp Mondelez Intl Inc Amgen Quarterly Ret 47.24 34.67 33.23 25.13 24.04 23.03 22.04 21.83 20.70 19.41 Ten Worst Performers Apple Inc Petsmart Inc F5 Networks Inc Juniper Networks E M C Corp Mass Whole Foods Mkt Inc Oracle Systems Corp Netapp Inc Occidental Pete Corp Eastman Chem Co Quarterly Ret -16.49 -9.13 -8.31 -5.74 -5.57 -4.80 -2.94 1.82 3.10 3.10 50 City of Clearwater Employees Pension Fund Equity Contribution to Return ING Investment Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR1000G 62 102,726,286 87,125,617 24,949,852 1.22 19.56 21.79 0.99 2.99 43.26 16.75 577 94,039,215 7,099,871 1.73 19.92 20.70 0.94 3.88 44.33 14.58 Ten Best Contributors Gilead Sciences Inc Celgene Corp Intl Business McHn Discovery Communicat Google Inc Amgen Blackrock Inc Cbs Corp Hca Holdings Inc Home Depot Inc Market Value% of PortfolioQuarterly Ret 3,102,651 1,254,146 4,910,166 2,038,579 4,022,556 2,457,165 1,708,252 1,742,938 1,114,075 2,614,657 3.02 1.22 4.78 1.99 3.92 2.39 1.66 1.70 1.09 2.55 33.23 47.24 11.83 24.04 11.93 19.41 25.13 23.03 34.67 13.44 Ten Worst Contributors Apple Inc E M C Corp Mass Oracle Systems Corp Petsmart Inc F5 Networks Inc Juniper Networks Whole Foods Mkt Inc Eastman Chem Co Netapp Inc Occidental Pete Corp Market Value% of PortfolioQuarterly Ret 5,647,959 1,766,427 3,194,189 999,810 1,017,294 1,038,425 1,021,915 509,352 1,523,878 941,224 5.50 1.72 3.11 0.97 0.99 1.01 1.00 0.50 1.48 0.92 -16.49 -5.57 -2.94 -9.13 -8.31 -5.74 -4.80 3.10 1.82 3.10 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 4.78 3.65 12.63 17.33 13.27 11.14 4.95 32.25 0.00 0.00 100.00 4.04 4.01 12.72 16.74 12.50 11.99 4.59 30.92 2.28 0.20 100.00 11.94 8.58 13.07 12.50 11.05 16.72 20.01 -0.16 8.97 13.56 6.63 11.66 12.20 13.40 16.44 10.69 2.38 10.81 14.55 9.49 -0.08 0.07 0.18 0.05 -0.31 0.03 0.46 -0.82 0.00 0.00 -0.42 0.03 0.01 -0.00 0.02 0.03 -0.06 0.00 -0.09 -0.03 -0.01 -0.10 -0.05 0.08 0.18 0.07 -0.28 -0.03 0.47 -0.92 -0.03 -0.01 -0.52 Index - R1000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.33% [ Actual Return 9.29% ] - [ Buy Hold Return 8.97% ] 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 3/13 % Allocation Energy 4.78 4.04 Materials 3.65 4.01 Industrials 12.63 12.72 Con. Discretionary 17.33 16.74 Consumer Staples 13.27 12.50 Health Care 11.14 11.99 Financials 4.95 4.59 Infomation Tech. 32.25 30.92 Telecom. Services 0.00 2.28 Utilities 0.00 0.20 ING Investment MgmtR1000G % Return 11.94 13.56 8.58 6.63 13.07 11.66 12.50 12.20 11.05 13.40 16.72 16.44 20.01 10.69 -0.16 2.38 10.81 14.55 % Variance -0.05 0.08 0.18 0.07 -0.28 -0.03 0.47 -0.92 -0.03 -0.01 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 3/31/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 NTGI-QM R1000VR1000V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 NTGI-QM R1000V R1000V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 12.60 12.31 95,899 -66,500 8,302 37,700 12.60 12.31 95,899 -66,500 8,302 37,700 19.61 18.77 58,940 -35,311 14,071 37,700 12.63 12.74 39,566 -25,811 23,946 37,700 4.93 4.85 44,437 -25,811 19,075 37,700 1.53 1.46 26,197 -25,811 37,314 37,700 Portfolio Performance (%) 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 3/31/13 Cash & Equiv $0 0.00% Domestic Equity $37,700 100.00% Periods from 6/07 to 3/13 Alpha Beta R-Squared 0.02 1.00 1.00 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.024.0 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 n 1 T Annualized Standard Deviation% n NTGI-QM R1000V 1 R1000V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 1.53 1.46 0.87 22.24 22.32 0.76 0.03 0.03 0.00 0.08 Asset Allocation ($000) Risk/Return Analysis 55 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 20.68 12.33 10.87 9.82 5.93 12.60 17 12.31 26 26.73 18.37 14.43 10.79 8.51 19.61 15 18.77 22 14.45 11.44 10.80 9.13 6.74 11.32 29 11.55 23 23.26 13.07 11.85 11.00 8.19 12.63 34 12.74 33 26.45 22.07 20.81 19.14 17.41 21.85 35 21.80 37 7.73 6.19 5.38 4.90 3.51 4.93 74 4.85 76 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% n 1 n 1 n 1 n1 n1 n 1 56 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank 3/31/13 YTD20122011201020092008 20.68 12.33 10.87 9.82 5.93 12.60 17 12.31 26 20.13 17.06 13.27 8.57 4.71 18.09 13 17.50 19 10.44 6.11 0.66 -2.34 -7.29 -0.77 65 0.39 55 20.41 16.73 14.45 11.34 9.48 15.75 40 15.51 43 41.26 29.13 24.15 20.59 14.13 20.35 77 19.69 82 -24.88 -32.86 -35.75 -38.13 -41.75 -36.86 64 -36.85 63 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% n 1 n 1 n 1 n 1 n 1 n1 57 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 12.63 54 12.74 49 17.57 12.83 10.91 8.86 2.14 10.70 55 10.86 52 19.18 14.42 12.94 10.61 2.78 11.76 64 11.83 63 23.59 18.72 16.39 13.93 5.87 15.57 60 15.80 58 34.62 28.11 24.11 21.88 8.72 22.61 69 22.82 67 0% 5% 10% 15% 20% 25% 30% 35% 40% n1 n1 n 1 n1 n 1 NTGI-QM R1000V Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -1.4% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 0.1 -0.2 0.1 0.2 0.1 0.0 0.3 0.1 0.0 0.1 0.00.00.0 0.1 -1.3 0.00.0 0.4 0.0 0.3 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R1000V 58 City of Clearwater Employees Pension Fund Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.04 1.00 1.00 -2.19 12.60 19.61 19.61 12.91 1.03 0.06 1.00 1.51 18.95 0.46 1.66 1 3 -2.20 12.31 18.77 18.77 12.58 1.48 4 8 0.99 1.00 0.92 -16.15 12.60 -1.78 29.89 18.84 0.99 0.00 1.00 0.66 12.65 0.93 -0.15 4 8 -16.21 13.11 -1.90 30.90 19.02 0.66 8 12 1.00 1.00 0.90 -22.13 18.29 -42.31 54.33 23.23 1.00 0.02 1.00 0.20 4.61 0.73 0.07 8 12 -22.17 18.24 -42.42 53.57 23.32 0.19 11 12 1.00 1.00 0.87 -22.13 18.29 -42.31 54.33 22.24 1.00 0.02 1.00 0.03 0.67 0.68 0.08 11 12 -22.17 18.24 -42.42 53.57 22.32 0.03 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios Annualized Rate of Return 8.010.412.815.217.620.022.424.827.229.632.0 4.0 5.8 7.6 9.4 11.2 13.0 14.8 16.6 18.4 20.1 21.9 n1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V 1 R1000V Median 12.635418.8437 12.744919.0240 12.7219.84 Annualized Rate of Return 14.015.817.619.421.223.024.826.628.430.232.0 -2.0 -0.2 1.5 3.4 5.2 7.0 8.8 10.6 12.4 14.2 16.0 n1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 1 R1000V Median 4.938223.2350 4.858323.3251 6.7023.33 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 3/31/13 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 Eagle Capital ManagementRussell 1000 Value Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 Eagle Capital Management Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.91 5.46 33,239 0 1,631 34,870 Portfolio Performance (%) 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 3/31/13 Cash & Equiv $1,594 4.57% Domestic Equity $33,276 95.43% Periods from 12/12 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -0.50.00.51.01.52.02.53.03.54.04.55.05.56.06.5 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 E 1 T Annualized Standard Deviation% E Eagle Capital Management 1 Russell 1000 Value T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 4.91 5.46 0.02 2.80 6.17 0.04 1.75 0.88 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 62 City of Clearwater Employees Pension Fund Manning and Napier as of 3/31/13 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and NapierRussell 1000 Value Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 5.03 5.46 33,104 0 1,667 34,770 Portfolio Performance (%) 63 City of Clearwater Employees Pension Fund Manning and Napier as of 3/31/13 Cash & Equiv $855 2.46% Domestic Equity $33,915 97.54% Periods from 12/12 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -1.00.01.02.03.04.05.06.07.08.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 M1 T Annualized Standard Deviation% M Manning and Napier 1 Russell 1000 Value T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.03 5.46 0.02 7.15 6.17 0.04 0.70 0.88 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 64 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 3/31/13 Lincoln Natl Corp In Allstate Corp Duke Realty Corp. Computer Sciences Co Brunswick Corp Carlisle Corp Wyndham Worldwide Co Regeneron Pharmaceut URS Corp New Ihs Inc GICS Sector% Port Financials Financials Financials Information Technology Consumer Discretionary Industrials Consumer Discretionary Health Care Industrials Industrials 2.57 2.48 2.30 2.30 2.12 1.95 1.85 1.83 1.81 1.70 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.63 2.83 18.87 16.57 1.82 14.33 17.98 16.65 0.00 4.32 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Mid Cap Equity CompR Mid Cap Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Mid Cap Equity Comp R Mid Cap Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 12.83 12.95 87,995 -1 11,289 99,283 12.83 12.95 87,995 -1 11,289 99,283 17.35 17.28 84,612 -5 14,676 99,283 18.39 14.62 67,818 -9,011 40,477 99,283 10.82 8.37 81,383 -9,012 26,911 99,283 12.21 12.27 61,294 -9,012 47,000 99,283 12.56 11.65 15,585 -9,012 92,710 99,283 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 65 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 3/31/13 Cash & Equiv $3,931 3.96% Domestic Equity $95,352 96.04% Periods from 3/88 to 3/13 Alpha Beta R-Squared 0.10 1.14 0.83 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.024.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 M 1 T Annualized Standard Deviation% M Mid Cap Equity Comp 1 R Mid Cap T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.56 11.65 3.84 23.29 18.48 1.24 0.37 0.42 0.00 0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 66 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low M Mid Cap Equity Comp Net Ret Rank 1 R Mid Cap Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 15.68 13.72 13.43 12.11 10.40 12.83 65 12.95 60 24.21 21.43 17.84 14.42 11.74 17.35 60 17.28 60 14.54 11.57 10.04 9.27 6.76 12.62 12 10.06 47 24.44 15.22 14.77 13.26 12.58 18.39 13 14.62 58 38.05 27.58 25.86 23.84 22.50 28.79 18 26.06 37 14.81 10.48 9.90 8.61 7.72 10.82 21 8.37 87 11.78 7.53 6.89 5.30 4.67 8.10 21 5.27 79 9.95 8.62 7.18 6.80 5.99 7.85 34 6.18 93 10.04 9.87 8.77 7.78 7.12 9.69 27 7.99 67 10.92 9.71 9.03 8.65 7.92 8.98 55 8.65 76 12.21 12.27 0% 5% 10% 15% 20% 25% 30% 35% 40% M1 M1 M 1 M 1 M 1 M 1 M 1 M 1 M 1 M1 M1 67 City of Clearwater Employees Pension Fund Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Mid Cap Equity Comp Net Ret Rank 1 R Mid Cap Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 15.68 13.72 13.43 12.11 10.40 12.83 65 12.95 60 23.86 19.95 17.83 14.49 11.39 22.00 15 17.26 63 6.60 1.74 -1.76 -4.27 -5.12 -0.10 32 -1.56 40 31.40 27.04 25.74 21.32 17.95 28.03 17 25.49 52 63.14 40.53 37.28 32.66 19.11 45.33 16 40.47 25 -26.24 -31.76 -36.45 -39.20 -43.90 -41.79 92 -41.46 90 16.25 9.90 6.87 3.01 -5.27 10.26 23 5.59 61 23.69 19.78 15.48 10.94 10.06 12.53 62 15.27 53 15.60 12.73 11.23 8.36 3.18 7.85 75 12.65 28 26.82 23.35 19.09 16.65 13.80 14.48 94 20.23 37 70.37 43.85 36.45 35.22 32.49 38.95 41 40.08 40 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% M1 M 1 M1 M1 M 1 M1 M 1 M1 M 1 M 1 M1 68 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.02 1.05 0.50 -4.62 12.83 17.35 17.35 14.41 1.00 -0.00 1.00 1.20 17.15 0.44 0.16 1 3 -4.41 12.95 17.28 17.28 14.34 1.20 3 9 1.06 0.87 0.75 -17.17 17.31 -0.10 41.77 20.25 0.95 0.98 0.97 0.90 19.19 3.55 0.89 3 9 -18.90 13.32 -1.67 38.49 21.03 0.69 6 14 1.02 0.92 0.70 -26.78 23.05 -39.23 65.80 25.41 0.97 0.61 0.98 0.41 10.81 3.46 0.60 6 14 -27.28 20.80 -40.81 67.72 25.99 0.31 31 69 1.16 1.16 0.57 -26.78 49.24 -41.79 77.74 23.29 1.14 0.10 0.83 0.37 7.63 10.05 0.12 32 68 -27.28 20.80 -41.46 67.72 18.48 0.42 69 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios Annualized Rate of Return 16.017.218.419.620.822.023.224.425.626.828.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 M 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp 1 R Mid Cap Median 18.391320.2513 14.625821.0326 14.7721.90 Annualized Rate of Return 19.020.321.622.924.225.526.828.129.430.732.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 M 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 1 R Mid Cap Median 10.822125.4135 8.378725.9969 9.9025.72 70 City of Clearwater Employees Pension Fund Artisan Partners as of 3/31/13 Regeneron Pharmaceut Ihs Inc Discover Finl Svcs Cerner Corp Verisk Analytics Inc Arm Hldgs Plc Trimble Navigation L Ralph Lauren Corp Athenahealth Inc Cigna Corp GICS Sector% Port Health Care Industrials Financials Health Care Industrials Information Technology Information Technology Consumer Discretionary Health Care Health Care 3.91 3.63 3.50 3.01 2.91 2.88 2.73 2.42 2.41 2.36 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.47 0.00 16.45 18.18 0.90 25.18 5.45 27.37 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan PartnersR Mid Cap G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan Partners R Mid Cap G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 9.02 11.52 43,165 -1 3,895 47,060 9.02 11.52 43,165 -1 3,895 47,060 8.81 12.77 43,252 -3 3,811 47,060 18.04 14.24 32,767 -5,008 19,300 47,060 11.68 7.98 23,039 -5,008 29,028 47,060 13.77 11.53 22,901 -5,008 29,167 47,060 9.17 6.68 29,914 -5,008 22,154 47,060 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 71 City of Clearwater Employees Pension Fund Artisan Partners as of 3/31/13 Cash & Equiv $2,340 4.97% Domestic Equity $44,720 95.03% Periods from 7/01 to 3/13 Alpha Beta R-Squared 0.59 0.93 0.95 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 r 1 T Annualized Standard Deviation% r Artisan Partners 1 R Mid Cap G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.17 6.68 1.81 19.76 19.81 0.52 0.37 0.25 0.00 0.31 Asset Allocation ($000) Risk/Return Analysis 72 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 13.97 12.62 10.94 9.60 6.99 9.02 77 11.52 39 18.87 16.23 12.29 9.57 2.39 8.81 81 12.77 49 12.56 9.55 7.65 6.28 0.50 10.68 15 8.51 38 18.04 16.13 14.71 13.58 8.92 18.04 5 14.24 59 29.00 26.12 24.46 22.57 20.39 27.08 18 24.85 41 12.29 8.96 7.59 5.99 3.28 11.68 9 7.98 40 10.45 7.42 6.57 4.02 1.73 10.26 14 5.78 55 9.97 7.76 6.38 5.57 3.82 9.68 17 5.94 57 12.29 11.19 8.79 8.24 6.97 11.19 26 7.90 92 11.33 10.78 8.37 8.04 7.27 10.72 32 7.95 89 13.77 11.53 0% 5% 10% 15% 20% 25% 30% r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 73 City of Clearwater Employees Pension Fund Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 13.97 12.62 10.94 9.60 6.99 9.02 77 11.52 39 22.48 20.02 17.00 14.84 4.01 20.82 13 15.80 61 7.39 0.54 -2.08 -5.90 -11.47 0.07 31 -1.66 45 35.50 30.01 26.81 25.13 17.96 33.15 14 26.39 59 57.46 50.16 40.15 34.18 24.89 51.38 19 46.30 29 -32.14 -39.59 -42.95 -46.19 -52.96 -42.87 47 -44.32 58 24.65 22.31 17.83 9.21 4.82 22.31 25 11.41 67 21.58 14.95 13.32 10.93 7.24 10.94 72 10.64 77 17.11 13.14 12.36 10.12 6.96 10.19 71 12.10 53 21.82 19.30 15.05 12.51 9.09 16.07 45 15.48 45 50.51 45.68 37.59 33.30 21.93 33.84 66 42.72 29 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% r1 r 1 r1 r 1 r 1 r1 r 1r1 r1 r1 r 1 74 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 18.04 6 14.24 27 17.57 12.83 10.91 8.86 2.14 17.20 5 12.91 24 19.18 14.42 12.94 10.61 2.78 18.65 5 14.73 21 23.59 18.72 16.39 13.93 5.87 22.61 6 19.01 22 34.62 28.11 24.11 21.88 8.72 33.83 5 29.16 18 0% 5% 10% 15% 20% 25% 30% 35% 40% r 1 r 1 r 1 r 1 r 1 Artisan Partners Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% -2.6 7.7 -0.2 5.4 -0.1-0.6-1.1-0.9 2.5 3.6 0.1 -0.2 1.2 5.7 -4.6 5.7 -1.8 0.50.0 -2.2 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap G 75 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.90 1.31 0.50 -7.34 9.02 8.81 8.81 14.21 0.96 -0.77 0.96 0.61 9.09 2.88 -1.26 1 3 -5.60 11.52 12.77 12.77 14.31 0.88 3 9 1.06 0.86 0.67 -14.74 21.06 0.07 49.98 21.58 0.95 1.00 0.91 0.83 18.84 6.47 0.48 3 9 -19.33 14.65 -2.99 43.26 21.73 0.65 5 15 0.98 0.85 0.50 -27.54 21.06 -33.41 58.59 25.02 0.93 0.96 0.94 0.45 12.22 6.31 0.46 6 14 -27.36 20.67 -39.58 62.98 26.22 0.29 14 32 1.01 0.90 0.43 -27.54 26.70 -42.87 58.59 21.52 0.93 0.59 0.95 0.44 10.22 5.20 0.31 15 31 -27.36 27.06 -44.32 62.98 22.45 0.33 76 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios Annualized Rate of Return 17.018.019.020.021.022.023.024.025.026.027.0 8.0 9.4 10.7 12.1 13.5 14.9 16.3 17.7 19.1 20.5 21.9 r 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank r Artisan Partners 1 R Mid Cap G Median 18.04521.5848 14.245921.7350 14.7122.27 Annualized Rate of Return 10.015.020.025.030.035.040.045.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 r 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 1 R Mid Cap G Median 11.68925.0236 7.984026.2247 7.5927.19 77 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR Mid Cap G 70 44,719,776 10,956,305 7,588,104 0.54 31.85 25.70 1.18 4.50 25.51 12.38 462 10,342,391 5,394,738 1.07 24.80 21.66 1.08 4.31 48.62 11.56 Ten Largest Holdings Regeneron Pharmaceut Ihs Inc Discover Finl Svcs Cerner Corp Verisk Analytics Inc Arm Hldgs Plc Trimble Navigation L Ralph Lauren Corp Athenahealth Inc Cigna Corp Market Value% of PortfolioQuarterly Ret 1,746,360 1,623,160 1,564,916 1,345,450 1,300,393 1,288,048 1,219,372 1,083,584 1,077,144 1,054,053 3.91 3.63 3.50 3.01 2.91 2.88 2.73 2.42 2.41 2.36 3.12 9.08 16.32 22.04 20.84 12.00 0.23 13.20 32.12 16.74 Ten Best Performers Isis Pharmaceuticals Cree Inc Linkedin Corp Incyte Pharmaceutica Cabot Oil & Gas Corp Freescale Semiconduc Athenahealth Inc Intercontinentalexch Covance Inc Core Laboratories N Quarterly Ret 61.95 61.01 53.34 40.94 35.98 35.24 32.12 31.71 28.65 26.53 Ten Worst Performers Lululemon Athletica Vmware Inc Hdfc Bank Ltd Ariad Pharmaceutical Teradata Corp Del Red Hat Inc L Brands Inc Illumina Inc Alexion Pharmaceutic Urban Outfitters Inc Quarterly Ret -18.21 -16.21 -8.10 -5.68 -5.46 -4.53 -4.45 -2.86 -1.78 -1.58 78 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR Mid Cap G 70 44,719,776 10,956,305 7,588,104 0.54 31.85 25.70 1.18 4.50 25.51 12.38 462 10,342,391 5,394,738 1.07 24.80 21.66 1.08 4.31 48.62 11.56 Ten Best Contributors Linkedin Corp Athenahealth Inc Cree Inc Cerner Corp Verisk Analytics Inc Discover Finl Svcs Isis Pharmaceuticals Cigna Corp Applied Materials In Oceaneering Intl Inc Market Value% of PortfolioQuarterly Ret 1,003,542 1,077,144 525,216 1,345,450 1,300,393 1,564,916 399,784 1,054,053 888,332 670,741 2.24 2.41 1.17 3.01 2.91 3.50 0.89 2.36 1.99 1.50 53.34 32.12 61.01 22.04 20.84 16.32 61.95 16.74 18.60 23.81 Ten Worst Contributors Lululemon Athletica Vmware Inc L Brands Inc Red Hat Inc Ariad Pharmaceutical Teradata Corp Del Hdfc Bank Ltd Alexion Pharmaceutic Illumina Inc Urban Outfitters Inc Market Value% of PortfolioQuarterly Ret 448,920 362,848 643,104 621,888 475,767 333,507 198,326 672,622 313,200 344,786 1.00 0.81 1.44 1.39 1.06 0.75 0.44 1.50 0.70 0.77 -18.21 -16.21 -4.45 -4.53 -5.68 -5.46 -8.10 -1.78 -2.86 -1.58 79 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 7.12 0.00 15.96 20.84 1.14 23.67 5.07 26.19 0.00 0.00 100.00 5.22 6.68 15.28 25.15 7.71 12.89 7.46 16.98 1.92 0.70 100.00 18.76 10.69 2.86 18.09 11.92 11.12 7.49 9.19 20.68 3.92 13.76 13.73 15.97 8.85 12.22 7.70 -2.41 14.55 11.55 -0.14 0.00 -0.49 -2.27 0.02 0.73 -0.06 -0.05 0.00 0.00 -2.25 0.17 0.51 0.02 -0.09 -0.29 -0.29 -0.02 -0.35 0.27 -0.02 -0.10 0.04 0.51 -0.48 -2.36 -0.27 0.43 -0.07 -0.41 0.27 -0.02 -2.36 Index - R Mid Cap G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.35% [ Actual Return 9.54% ] - [ Buy Hold Return 9.19% ] 80 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 3/13 % Allocation Energy 7.12 5.22 Materials 0.00 6.68 Industrials 15.96 15.28 Con. Discretionary 20.84 25.15 Consumer Staples 1.14 7.71 Health Care 23.67 12.89 Financials 5.07 7.46 Infomation Tech. 26.19 16.98 Telecom. Services 0.00 1.92 Utilities 0.00 0.70 Artisan PartnersR Mid Cap G % Return 18.76 20.68 3.92 10.69 13.76 2.86 13.73 18.09 15.97 11.92 8.85 11.12 12.22 7.49 7.70 -2.41 14.55 % Variance 0.04 0.51 -0.48 -2.36 -0.27 0.43 -0.07 -0.41 0.27 -0.02 81 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 3/31/13 Lincoln Natl Corp In Allstate Corp Duke Realty Corp. Computer Sciences Co Brunswick Corp Carlisle Corp Wyndham Worldwide Co URS Corp New Transdigm Group Inc Darden Restaurants I GICS Sector% Port Financials Financials Financials Information Technology Consumer Discretionary Industrials Consumer Discretionary Industrials Industrials Consumer Discretionary 4.84 4.67 4.33 4.33 3.99 3.68 3.48 3.41 3.08 3.06 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.77 5.34 21.01 15.16 2.62 4.72 29.07 7.17 0.00 8.14 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital MgmtR Mid Cap V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital Mgmt R Mid Cap V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 16.49 14.21 44,831 -1 7,394 52,224 16.49 14.21 44,831 -1 7,394 52,224 26.27 21.47 41,360 -2 10,865 52,224 18.65 14.95 35,050 -4,004 21,177 52,224 11.75 8.53 26,958 -4,004 29,269 52,224 7.44 4.50 30,365 -4,004 25,862 52,224 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 82 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 3/31/13 Cash & Equiv $1,592 3.05% Domestic Equity $50,632 96.95% Periods from 2/07 to 3/13 Alpha Beta R-Squared 0.72 0.99 0.97 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.024.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 w 1 T Annualized Standard Deviation% w Wedge Capital Mgmt 1 R Mid Cap V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 7.44 4.50 1.10 21.56 21.67 0.53 0.29 0.16 0.00 0.66 Asset Allocation ($000) Risk/Return Analysis 83 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years 21.82 15.78 13.66 12.72 7.27 16.49 15 14.21 41 26.65 20.24 17.73 16.14 5.17 26.27 9 21.47 12 16.01 11.66 9.32 8.38 4.40 14.42 9 11.45 28 18.98 15.17 13.63 11.44 6.59 18.65 9 14.95 28 36.70 25.45 24.47 23.58 20.05 30.41 15 27.21 15 11.75 10.39 8.12 6.07 5.16 11.75 6 8.53 46 7.48 6.87 5.43 2.56 1.94 7.31 16 4.37 64 0% 5% 10% 15% 20% 25% 30% 35% 40% w 1 w 1 w 1 w 1 w 1 w 1 w 1 84 City of Clearwater Employees Pension Fund Midcap Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank 3/31/13 YTD20122011201020092008 21.82 15.78 13.66 12.72 7.27 16.49 15 14.21 41 23.16 22.81 15.69 14.76 4.51 23.16 6 18.48 36 9.38 6.60 -2.82 -6.45 -11.08 -0.33 42 -1.38 46 35.88 30.03 21.25 19.29 14.62 23.30 33 24.76 25 61.50 54.67 39.62 32.16 30.37 38.51 66 34.20 69 -31.72 -34.45 -35.70 -43.12 -44.52 -34.89 38 -38.45 53 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% w 1 w 1 w 1 w 1 w 1 w 1 85 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 18.65 4 14.95 20 17.57 12.83 10.91 8.86 2.14 14.81 11 13.39 20 19.18 14.42 12.94 10.61 2.78 15.89 14 13.85 31 23.59 18.72 16.39 13.93 5.87 21.43 9 19.92 15 34.62 28.11 24.11 21.88 8.72 31.82 8 29.19 18 0% 5% 10% 15% 20% 25% 30% 35% 40% w 1 w 1 w 1 w 1 w 1 Wedge Capital Mgmt Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1.1 3.6 1.1 -1.0 3.9 -1.7 2.1 -3.7 5.0 -3.1 0.9 1.7 0.6 -1.4 0.2 2.0 1.5 -0.2 0.5 2.0 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap V 86 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.12 0.54 0.75 -1.77 16.49 26.27 26.27 15.18 1.07 0.68 0.98 1.72 24.45 2.15 1.95 1 3 -3.26 14.21 21.47 21.47 14.36 1.49 4 8 1.06 0.86 0.75 -19.63 16.49 -0.63 34.32 20.55 0.99 0.88 0.96 0.90 18.81 3.96 0.83 4 8 -18.47 14.21 -2.36 34.30 20.53 0.72 7 13 1.05 0.92 0.70 -26.40 25.65 -39.75 73.15 26.51 0.99 0.78 0.97 0.43 11.53 4.63 0.63 7 13 -27.19 23.62 -42.51 72.41 26.40 0.31 10 14 1.06 0.92 0.71 -26.40 25.65 -39.75 73.15 25.00 0.99 0.72 0.97 0.25 6.31 4.23 0.66 10 14 -27.19 23.62 -42.51 72.41 24.81 0.13 87 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Value Portfolios Annualized Rate of Return 16.018.020.022.024.026.028.030.032.0 4.0 5.8 7.6 9.4 11.2 13.0 14.8 16.6 18.4 20.1 21.9 w 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt 1 R Mid Cap V Median 18.65920.5522 14.952820.5322 13.6323.35 Annualized Rate of Return 18.019.420.822.223.625.026.427.829.230.632.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 w 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank w Wedge Capital Mgmt 1 R Mid Cap V Median 11.75626.5157 8.534626.4057 8.1225.20 88 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR Mid Cap V 44 50,631,870 7,443,310 4,192,609 2.08 18.02 16.39 1.24 1.65 58.98 3.64 565 9,690,241 4,611,966 2.02 23.30 17.08 1.25 1.57 60.77 3.98 Ten Largest Holdings Lincoln Natl Corp In Allstate Corp Duke Realty Corp. Computer Sciences Co Brunswick Corp Carlisle Corp Wyndham Worldwide Co URS Corp New Transdigm Group Inc Darden Restaurants I Market Value% of PortfolioQuarterly Ret 2,447,707 2,360,267 2,188,331 2,187,830 2,017,953 1,857,446 1,760,304 1,720,983 1,555,961 1,545,232 4.84 4.67 4.33 4.33 3.99 3.68 3.48 3.41 3.08 3.06 26.46 22.83 23.73 23.42 17.63 15.71 21.75 21.32 12.14 15.93 Ten Best Performers Hca Holdings Inc Life Technologies Co Lincoln Natl Corp In Hillshire Brands Co Duke Realty Corp. TCF Bkg & Svgs Fa Mi Computer Sciences Co Huntington Ingalls I Allstate Corp Wyndham Worldwide Co Quarterly Ret 34.67 31.68 26.46 25.39 23.73 23.57 23.42 23.32 22.83 21.75 Ten Worst Performers Comtech Telecommunic Phh Corp Nordstrom Inc Convergys Corp Northrop Corp Qep Res Inc M & T Bk Corp Murphy Oil Corp Harris Teeter Superm Dover Corp Quarterly Ret -4.33 -3.47 3.81 4.14 4.67 5.26 5.48 7.57 11.15 11.45 89 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR Mid Cap V 44 50,631,870 7,443,310 4,192,609 2.08 18.02 16.39 1.24 1.65 58.98 3.64 565 9,690,241 4,611,966 2.02 23.30 17.08 1.25 1.57 60.77 3.98 Ten Best Contributors Lincoln Natl Corp In Allstate Corp Duke Realty Corp. Computer Sciences Co Hca Holdings Inc Wyndham Worldwide Co URS Corp New Brunswick Corp Life Technologies Co Bemis Inc Market Value% of PortfolioQuarterly Ret 2,447,707 2,360,267 2,188,331 2,187,830 1,401,735 1,760,304 1,720,983 2,017,953 982,376 1,372,240 4.84 4.67 4.33 4.33 2.77 3.48 3.41 3.99 1.94 2.72 26.46 22.83 23.73 23.42 34.67 21.75 21.32 17.63 31.68 21.47 Ten Worst Contributors Comtech Telecommunic Phh Corp Northrop Corp Convergys Corp Nordstrom Inc First Niagara Finl G Qep Res Inc M & T Bk Corp Cbl & Assoc Pptys In Energen Corp Market Value% of PortfolioQuarterly Ret 508,860 434,808 420,900 924,729 1,043,847 326,934 913,808 969,704 457,840 384,874 1.01 0.86 0.83 1.83 2.07 0.65 1.81 1.92 0.91 0.76 -4.33 -3.47 4.67 4.14 3.81 12.85 5.26 5.48 12.36 15.70 90 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 7.72 5.26 19.74 14.01 2.65 4.38 29.64 8.16 0.00 8.43 100.00 9.16 6.30 11.45 9.39 4.92 6.99 30.23 10.01 1.42 10.14 100.00 9.12 20.15 14.33 17.15 16.91 33.33 18.61 14.06 14.48 16.79 16.05 5.57 15.62 15.21 19.64 17.11 13.70 16.12 3.12 14.35 14.45 -0.53 0.77 -0.26 0.27 -0.07 0.71 1.46 -0.17 0.00 0.01 2.18 -0.02 0.09 0.10 0.04 -0.12 -0.07 0.00 -0.03 0.16 0.00 0.15 -0.56 0.86 -0.16 0.31 -0.19 0.64 1.46 -0.20 0.16 0.01 2.33 Index - R Mid Cap V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.40% [ Actual Return 17.19% ] - [ Buy Hold Return 16.79% ] 91 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 3/13 % Allocation Energy 7.72 9.16 Materials 5.26 6.30 Industrials 19.74 11.45 Con. Discretionary 14.01 9.39 Consumer Staples 2.65 4.92 Health Care 4.38 6.99 Financials 29.64 30.23 Infomation Tech. 8.16 10.01 Telecom. Services 0.00 1.42 Utilities 8.43 10.14 Wedge Capital MgmtR Mid Cap V % Return 9.12 16.05 20.15 5.57 14.33 15.62 17.15 15.21 16.91 19.64 33.33 17.11 18.61 13.70 14.06 16.12 3.12 14.48 14.35 % Variance -0.56 0.86 -0.16 0.31 -0.19 0.64 1.46 -0.20 0.16 0.01 92 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 3/31/13 Ultimate Software Gr Lkq Corp National Instrs Corp Maximus Inc Rollins Inc Beacon Roofing Suppl Chemed Corp New Portfolio Recovery A Semtech Corp Cepheid Inc GICS Sector% Port Information Technology Consumer Discretionary Information Technology Information Technology Industrials Industrials Health Care Financials Information Technology Health Care 2.34 2.19 2.00 1.93 1.82 1.77 1.68 1.66 1.62 1.48 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 3.40 2.77 19.54 14.05 3.83 14.74 14.25 27.11 0.00 0.31 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity CompR2000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 11.91 12.39 49,049 -1 5,844 54,893 11.91 12.39 49,049 -1 5,844 54,893 18.26 16.30 48,357 -2,003 8,538 54,893 16.90 13.45 76,253 -41,008 19,647 54,893 10.74 8.24 65,559 -41,008 30,342 54,893 9.25 8.41 29,988 -41,008 65,912 54,893 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 93 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 3/31/13 Cash & Equiv $1,624 2.96% Domestic Equity $53,269 97.04% Periods from 8/03 to 3/13 Alpha Beta R-Squared 0.36 0.91 0.96 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 S 1 T Annualized Standard Deviation% S Small Cap Equity Comp 1 R2000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.25 8.41 1.78 19.09 20.02 0.56 0.39 0.33 0.00 0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 94 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low S Small Cap Equity Comp Net Ret Rank 1 R2000 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 14.54 13.06 12.42 11.47 9.29 11.91 65 12.39 53 23.43 18.23 16.73 14.98 8.43 18.26 23 16.30 64 12.85 9.77 8.67 7.27 4.68 11.09 14 7.75 68 18.61 15.36 14.21 12.81 10.70 16.90 13 13.45 66 31.44 26.61 24.60 23.52 19.95 25.95 32 24.16 61 12.72 10.05 8.98 8.01 6.72 10.74 16 8.24 68 9.04 6.39 5.63 4.56 2.99 6.11 34 4.37 76 9.35 6.67 5.73 5.12 3.82 6.38 35 4.59 82 11.62 8.70 8.09 7.25 6.08 8.40 36 7.03 75 9.86 9.01 8.21 7.63 6.85 8.25 47 6.85 96 0% 5% 10% 15% 20% 25% 30% 35% S1 S 1 S 1 S 1 S 1 S 1 S 1 S 1 S 1 S 1 95 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low S Small Cap Equity Comp Net Ret Rank 1 R2000 Net Ret Rank 3/31/13 YTD201220112010200920082007200620052004 14.54 13.06 12.42 11.47 9.29 11.91 65 12.39 53 23.06 18.48 16.63 14.95 10.79 17.61 37 16.34 60 4.74 -0.19 -2.87 -4.41 -10.19 2.07 14 -4.17 73 34.90 29.58 26.85 24.53 20.43 29.27 27 26.85 50 48.56 35.72 28.97 25.98 21.89 33.51 34 27.19 68 -21.59 -30.21 -33.24 -36.39 -41.40 -38.63 86 -33.80 60 10.45 3.83 0.33 -2.52 -8.35 3.27 29 -1.55 66 24.68 19.19 17.34 15.26 10.88 17.40 48 18.35 32 12.11 10.21 8.27 4.82 2.60 7.21 61 4.56 81 28.24 23.66 20.46 18.24 12.47 15.69 85 18.32 70 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% S1 S1 S 1 S1 S 1 S 1 S 1 S1 S1 S1 96 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.95 0.27 0.50 -0.95 11.91 18.26 18.26 10.98 0.85 0.99 0.97 1.65 21.43 2.97 0.51 1 3 -3.47 12.39 16.30 16.30 13.29 1.22 4 8 1.01 0.82 0.75 -18.74 16.53 2.07 41.95 21.26 0.93 0.96 0.99 0.79 18.13 2.48 1.09 4 8 -21.86 16.25 -4.17 37.40 22.95 0.58 7 13 0.99 0.88 0.70 -25.65 20.74 -33.83 57.55 24.12 0.91 0.70 0.97 0.43 11.44 4.80 0.35 7 13 -26.12 20.68 -37.50 62.77 26.20 0.30 12 26 0.96 0.89 0.61 -25.65 20.74 -38.63 57.55 19.62 0.91 0.36 0.96 0.41 8.74 4.48 0.12 13 25 -26.12 20.68 -37.50 62.77 21.14 0.33 97 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios Annualized Rate of Return 14.016.018.020.022.024.026.028.030.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 S 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp 1 R2000 Median 16.901321.2614 13.456622.9569 14.2122.29 Annualized Rate of Return 14.016.418.821.223.626.028.430.833.235.638.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 S 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 1 R2000 Median 10.741624.1220 8.246826.2062 8.9825.94 98 City of Clearwater Employees Pension Fund Riverbridge Partners as of 3/31/13 Ultimate Software Gr Maximus Inc Rollins Inc Lkq Corp Chemed Corp New Portfolio Recovery A National Instrs Corp Semtech Corp Beacon Roofing Suppl Cepheid Inc GICS Sector% Port Information Technology Information Technology Industrials Consumer Discretionary Health Care Financials Information Technology Information Technology Industrials Health Care 4.74 3.91 3.70 3.65 3.42 3.36 3.34 3.29 3.02 3.01 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 17.88 11.47 3.96 23.18 5.21 38.31 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Riverbridge PartnersR2000G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Riverbridge Partners R2000G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 12.24 13.20 24,129 0 2,954 27,083 12.24 13.20 24,129 0 2,954 27,083 20.75 14.52 22,429 -1 4,654 27,083 20.83 16.81 16,876 -2 10,208 27,083 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 99 City of Clearwater Employees Pension Fund Riverbridge Partners as of 3/31/13 Cash & Equiv $827 3.05% Domestic Equity $26,255 96.95% Periods from 9/10 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -2.00.02.04.06.08.010.012.014.016.018.020.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 R 1 T Annualized Standard Deviation% R Riverbridge Partners 1 R2000G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 20.83 16.81 0.11 14.81 18.65 0.03 1.40 0.90 0.00 0.33 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 100 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low R Riverbridge Partners Net Ret Rank 1 R2000G Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs 3/13 YTD Last Year Last 2 Years 15.59 13.92 12.51 10.89 6.75 12.24 57 13.20 35 19.62 15.67 13.03 10.94 7.34 13.68 44 13.71 44 27.81 22.41 18.56 16.05 10.45 17.50 64 19.21 47 15.59 13.92 12.51 10.89 6.75 12.24 57 13.20 35 24.26 17.24 13.70 11.01 3.75 20.75 10 14.52 48 13.51 9.88 8.29 5.83 0.97 12.37 9 7.37 59 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% R1 R1 R 1 R1 R 1 R 1 101 City of Clearwater Employees Pension Fund Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low R Riverbridge Partners Net Ret Rank 1 R2000G Net Ret Rank 3/31/13 YTD20122011 15.59 13.92 12.51 10.89 6.75 12.24 57 13.20 35 22.59 17.92 14.68 11.95 6.59 17.83 26 14.59 52 7.70 2.62 -1.44 -4.33 -9.90 4.27 17 -2.92 65 -15% -10% -5% 0% 5% 10% 15% 20% 25% R 1 R 1 R 1 102 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR2000G 46 26,255,195 2,214,493 1,636,800 0.39 34.43 31.22 0.99 3.62 11.86 7.56 1,115 1,757,385 682,015 0.69 37.62 17.12 1.25 3.44 33.71 9.82 Ten Largest Holdings Ultimate Software Gr Maximus Inc Rollins Inc Lkq Corp Chemed Corp New Portfolio Recovery A National Instrs Corp Semtech Corp Beacon Roofing Suppl Cepheid Inc Market Value% of PortfolioQuarterly Ret 1,244,191 1,026,015 970,142 959,181 896,976 882,094 875,637 864,932 791,950 790,192 4.74 3.91 3.70 3.65 3.42 3.36 3.34 3.29 3.02 3.01 10.33 26.65 11.79 3.13 16.88 18.77 27.48 22.25 16.17 13.49 Ten Best Performers Sciquest Inc New Mobile Mini Athenahealth Inc Financial Engines In Power Integrations I Abaxis Inc National Instrs Corp Maximus Inc Proto Labs Inc Verint Sys Inc Quarterly Ret 51.58 41.29 32.12 30.71 29.41 27.55 27.48 26.65 24.56 24.49 Ten Worst Performers Fresh Mkt Inc Bio-Reference Labs I United Nat Foods Inc Stratasys Ltd Digi Intl Inc Cabot Microelectroni Techne Corp Cass Information Sys Ebix Com Inc Concur Technologies Quarterly Ret -11.06 -9.45 -8.19 -7.40 -5.70 -2.14 -0.28 0.05 1.34 1.69 103 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioRussell 2000 Growth 46 26,255,195 2,214,493 1,636,800 0.39 34.43 31.22 0.99 3.62 11.86 7.56 1,115 1,757,385 682,015 0.69 37.62 17.12 1.25 3.44 33.71 9.82 Ten Best Contributors Maximus Inc Mobile Mini Sciquest Inc New National Instrs Corp Athenahealth Inc Semtech Corp Costar Group Inc Portfolio Recovery A Abaxis Inc Chemed Corp New Market Value% of PortfolioQuarterly Ret 1,026,015 624,652 479,165 875,637 743,423 864,932 785,376 882,094 569,070 896,976 3.91 2.38 1.83 3.34 2.83 3.29 2.99 3.36 2.17 3.42 26.65 41.29 51.58 27.48 32.12 22.25 22.48 18.77 27.55 16.88 Ten Worst Contributors United Nat Foods Inc Bio-Reference Labs I Fresh Mkt Inc Stratasys Ltd Digi Intl Inc Cabot Microelectroni Techne Corp Cass Information Sys Ebix Com Inc Concur Technologies Market Value% of PortfolioQuarterly Ret 679,944 492,737 359,653 417,488 295,806 327,727 492,930 369,279 275,854 504,720 2.59 1.88 1.37 1.59 1.13 1.25 1.88 1.41 1.05 1.92 -8.19 -9.45 -11.06 -7.40 -5.70 -2.14 -0.28 0.05 1.34 1.69 104 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 0.00 0.00 16.41 10.88 5.01 23.68 4.87 39.15 0.00 0.00 100.00 5.66 4.76 17.99 16.21 4.61 20.29 7.84 21.46 0.85 0.33 100.00 15.48 8.26 -9.21 12.41 22.75 14.03 12.52 11.25 11.71 14.88 11.38 11.69 15.26 14.86 12.45 4.50 2.94 13.24 0.00 0.00 0.10 -0.34 -1.05 -0.68 0.38 0.62 0.00 0.00 -0.96 0.11 0.07 -0.03 0.10 -0.01 0.07 -0.05 -0.14 0.07 0.03 0.24 0.11 0.07 0.07 -0.24 -1.05 -0.61 0.34 0.48 0.07 0.03 -0.72 Index - R2000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.22% [ Actual Return 12.74% ] - [ Buy Hold Return 12.52% ] 105 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 3/13 % Allocation Energy 0.00 5.66 Materials 0.00 4.76 Industrials 16.41 17.99 Con. Discretionary 10.88 16.21 Consumer Staples 5.01 4.61 Health Care 23.68 20.29 Financials 4.87 7.84 Infomation Tech. 39.15 21.46 Telecom. Services 0.00 0.85 Utilities 0.00 0.33 Riverbridge PartnersR2000G % Return 11.25 11.71 15.48 14.88 8.26 11.38 -9.21 11.69 12.41 15.26 22.75 14.86 14.03 12.45 4.50 2.94 % Variance 0.11 0.07 0.07 -0.24 -1.05 -0.61 0.34 0.48 0.07 0.03 106 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 3/31/13 Kirby Expl Co. Morningstar Inc Henry Jack & Assoc I Bio Rad Labs Inc Manhattan Assocs Inc Dril-Quip Inc Sally Beauty Hldgs I Blackbaud Inc Aptargroup Inc Moog Inc ’a’ GICS Sector% Port Industrials Consumer Discretionary Information Technology Health Care Information Technology Energy Consumer Discretionary Information Technology Materials Industrials 3.60 3.47 3.35 3.23 3.02 2.88 2.74 2.63 2.23 2.19 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.88 3.38 28.08 18.99 3.77 7.08 17.15 18.67 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Atlanta Capital MgmtR2000V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Atlanta Capital Mgmt R2000V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 11.87 11.63 12,220 0 1,451 13,671 11.87 11.63 12,220 0 1,451 13,671 15.80 18.08 13,793 -2,001 1,879 13,671 17.70 12.11 19,973 -12,002 5,700 13,671 13.41 7.28 17,353 -12,002 8,320 13,671 12.14 8.47 14,990 -12,002 10,683 13,671 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 107 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 3/31/13 Cash & Equiv $555 4.06% Domestic Equity $13,116 95.94% Periods from 8/03 to 3/13 Alpha Beta R-Squared 1.27 0.73 0.92 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 t 1 T Annualized Standard Deviation% t Atlanta Capital Mgmt 1 R2000V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.14 8.47 1.78 16.79 19.98 0.56 0.62 0.33 0.00 0.33 Asset Allocation ($000) Risk/Return Analysis 108 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 R2000V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 15.60 13.93 13.25 12.10 7.37 11.87 80 11.63 80 27.89 21.62 18.35 15.52 4.87 15.80 70 18.08 52 12.83 10.43 8.77 8.08 1.02 12.56 7 8.08 75 17.04 15.75 14.40 13.39 10.87 17.70 1 12.11 90 29.15 28.22 27.29 25.06 22.97 25.58 71 23.50 89 12.45 10.80 9.59 8.50 7.56 13.41 1 7.28 99 7.81 6.76 6.07 4.42 3.48 10.95 1 2.82 100 8.96 7.97 6.60 5.82 4.23 10.48 1 3.87 100 10.41 9.29 8.66 8.13 6.90 11.62 1 6.17 100 10.92 10.27 9.23 8.40 7.75 11.73 1 6.56 100 0% 5% 10% 15% 20% 25% 30% t1 t 1 t 1 t 1 t 1 t 1 t 1 t 1 t 1 t 1 109 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 R2000V Net Ret Rank 3/31/13 YTD201220112010200920082007200620052004 15.60 13.93 13.25 12.10 7.37 11.87 80 11.63 80 21.72 17.93 15.30 10.83 -4.23 12.53 62 18.05 23 2.52 -0.44 -3.25 -5.95 -8.96 10.20 1 -5.50 71 33.23 30.88 28.02 25.13 21.15 25.98 67 24.51 82 55.19 37.53 33.62 26.61 22.56 26.83 69 20.57 96 -23.82 -29.40 -31.81 -35.88 -38.74 -19.52 1 -28.92 21 4.50 0.79 -2.90 -9.16 -12.81 6.91 4 -9.77 78 29.98 21.53 19.90 15.90 12.37 16.22 70 23.48 9 13.67 10.86 8.89 6.98 2.85 6.23 75 4.70 88 28.23 26.31 24.36 21.39 17.34 20.24 79 22.25 58 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% t1 t 1 t 1 t1 t 1 t 1 t 1 t 1 t1 t1 110 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 R2000V Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 17.70 7 12.11 63 17.57 12.83 10.91 8.86 2.14 16.03 7 11.58 39 19.18 14.42 12.94 10.61 2.78 16.78 10 11.72 64 23.59 18.72 16.39 13.93 5.87 20.81 11 17.43 35 34.62 28.11 24.11 21.88 8.72 29.02 19 25.35 40 0% 5% 10% 15% 20% 25% 30% 35% 40% t 1 t 1 t 1 t 1 t 1 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 1.5 -1.2 11.0 10.9 0.0 -6.0 0.9 -2.6 3.2 1.2 -0.6 2.7 5.4 7.3 0.4 -2.6 -0.1 -1.4-0.7 0.2 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000V 111 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.90 1.04 0.25 -3.12 11.87 15.80 15.80 12.37 0.99 -0.48 0.99 1.27 15.76 1.48 -1.35 1 3 -3.01 11.63 18.08 18.08 12.12 1.48 3 9 0.99 0.67 0.58 -15.76 16.42 3.29 43.07 19.17 0.84 1.63 0.96 0.92 20.89 5.28 0.81 4 8 -21.47 15.97 -6.00 32.63 22.43 0.54 6 14 0.91 0.67 0.60 -16.60 18.00 -24.55 52.53 20.68 0.76 1.66 0.96 0.63 17.18 7.68 0.52 7 13 -24.89 22.70 -38.89 65.05 26.69 0.26 11 27 0.88 0.60 0.58 -16.60 18.00 -24.55 52.53 16.13 0.73 1.27 0.92 0.67 14.94 7.42 0.33 12 26 -24.89 22.70 -38.89 65.05 21.35 0.32 112 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios Annualized Rate of Return 17.018.119.220.321.422.523.624.725.826.928.0 9.0 10.1 11.2 12.3 13.4 14.5 15.6 16.7 17.8 18.9 20.0 t 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt 1 R2000V Median 17.70119.178 12.119022.4345 14.4022.76 Annualized Rate of Return 20.021.523.024.526.027.529.030.532.033.535.0 5.0 5.9 6.8 7.7 8.6 9.5 10.4 11.2 12.1 13.0 13.9 t 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 1 R2000V Median 13.41120.681 7.289926.6948 9.5927.19 113 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR2000V 59 13,116,051 2,493,422 1,910,547 0.92 23.05 21.38 1.04 2.89 24.78 6.85 1,416 1,352,001 506,727 2.09 29.86 14.28 1.28 1.38 47.71 5.11 Ten Largest Holdings Kirby Expl Co. Morningstar Inc Henry Jack & Assoc I Bio Rad Labs Inc Manhattan Assocs Inc Dril-Quip Inc Sally Beauty Hldgs I Blackbaud Inc Aptargroup Inc Moog Inc ’a’ Market Value% of PortfolioQuarterly Ret 471,245 454,410 439,457 423,990 395,223 377,446 359,024 344,597 291,854 287,354 3.60 3.47 3.35 3.23 3.02 2.88 2.74 2.63 2.23 2.19 24.09 11.28 18.05 19.94 23.12 19.33 24.65 30.35 20.77 11.70 Ten Best Performers Aaon Inc Blackbaud Inc Power Integrations I Raven Inds Inc National Instrs Corp Choice Hotels Intl I Sally Beauty Hldgs I Kirby Expl Co. Manhattan Assocs Inc Aptargroup Inc Quarterly Ret 32.20 30.35 29.41 27.50 27.48 26.40 24.65 24.09 23.12 20.77 Ten Worst Performers Liquidity Services I Scansource Inc Landauer Inc II VI Inc Exponet Inc Hittite Microwave Co Techne Corp Aaron Rents Inc Iberiabank Corp Acuity Brands Inc Quarterly Ret -27.04 -11.17 -7.00 -6.73 -3.11 -2.48 -0.28 1.48 2.52 2.59 114 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR2000V 59 13,116,051 2,493,422 1,910,547 0.92 23.05 21.38 1.04 2.89 24.78 6.85 1,416 1,352,001 506,727 2.09 29.86 14.28 1.28 1.38 47.71 5.11 Ten Best Contributors Kirby Expl Co. Blackbaud Inc Manhattan Assocs Inc Sally Beauty Hldgs I Bio Rad Labs Inc Henry Jack & Assoc I Dril-Quip Inc Raven Inds Inc Power Integrations I Choice Hotels Intl I Market Value% of PortfolioQuarterly Ret 471,245 344,597 395,223 359,024 423,990 439,457 377,446 254,192 234,240 242,436 3.60 2.63 3.02 2.74 3.23 3.35 2.88 1.94 1.79 1.85 24.09 30.35 23.12 24.65 19.94 18.05 19.33 27.50 29.41 26.40 Ten Worst Contributors Liquidity Services I Scansource Inc II VI Inc Landauer Inc Exponet Inc Hittite Microwave Co Techne Corp Artisan Partners Ass Aaron Rents Inc State Bk Finl Corp Market Value% of PortfolioQuarterly Ret 131,969 146,264 143,732 107,122 233,021 132,808 167,590 146,083 187,711 157,921 1.01 1.12 1.10 0.82 1.78 1.01 1.28 1.11 1.43 1.20 -27.04 -11.17 -6.73 -7.00 -3.11 -2.48 -0.28 1.48 3.28 115 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 2.74 3.20 28.69 19.34 3.76 8.18 16.44 17.65 0.00 0.00 100.00 6.42 5.79 13.05 11.95 2.49 4.42 36.96 12.15 0.57 6.20 100.00 19.33 20.75 12.10 11.73 14.08 10.41 11.46 13.20 12.53 12.22 6.99 13.15 13.68 11.46 10.85 12.86 7.79 -3.35 10.81 11.66 0.20 0.44 -0.30 -0.38 0.10 -0.04 -0.23 0.95 0.00 0.00 0.74 -0.02 0.12 0.23 0.15 -0.00 -0.03 -0.25 -0.21 0.09 0.05 0.13 0.17 0.56 -0.07 -0.23 0.10 -0.07 -0.48 0.74 0.09 0.05 0.87 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.04% [ Actual Return 12.49% ] - [ Buy Hold Return 12.53% ] 116 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 3/13 % Allocation Energy 2.74 6.42 Materials 3.20 5.79 Industrials 28.69 13.05 Con. Discretionary 19.34 11.95 Consumer Staples 3.76 2.49 Health Care 8.18 4.42 Financials 16.44 36.96 Infomation Tech. 17.65 12.15 Telecom. Services 0.00 0.57 Utilities 0.00 6.20 Atlanta Capital MgmtR2000V % Return 19.33 12.22 20.75 6.99 12.10 13.15 11.73 13.68 14.08 11.46 10.41 10.85 11.46 12.86 13.20 7.79 -3.35 10.81 % Variance 0.17 0.56 -0.07 -0.23 0.10 -0.07 -0.48 0.74 0.09 0.05 117 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 3/31/13 Dupont Fabros Techno Cno Finl Group Inc Susser Hldgs Corp U S Airways Group In Graphic Packaging Hl Infinity Ppty & Cas Brandywine Rlty Tr Hercules Offshore In Bankunited Inc Bbcn Bancorp Inc GICS Sector% Port Financials Financials Consumer Staples Industrials Materials Financials Financials Energy Financials Financials 3.03 2.08 2.04 1.81 1.74 1.48 1.45 1.44 1.42 1.40 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 10.30 7.43 14.63 14.27 3.65 6.03 28.61 13.90 0.00 1.18 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Systematic Financial MgtR2000V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Systematic Financial Mgt R2000V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 11.34 11.63 12,700 0 1,440 14,140 11.34 11.63 12,700 0 1,440 14,140 16.52 18.08 12,135 -1 2,005 14,140 14.15 12.11 15,870 -6,001 4,270 14,140 8.97 7.28 15,364 -6,001 4,777 14,140 8.48 8.47 15,001 -6,001 5,140 14,140 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 118 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 3/31/13 Cash & Equiv $242 1.71% Domestic Equity $13,898 98.29% Periods from 8/03 to 3/13 Alpha Beta R-Squared 0.11 1.05 0.86 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.022.024.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 s1 T Annualized Standard Deviation% s Systematic Financial Mgt 1 R2000V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 8.48 8.47 1.78 21.78 19.98 0.56 0.31 0.33 0.00 0.05 Asset Allocation ($000) Risk/Return Analysis 119 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 15.60 13.93 13.25 12.10 7.37 11.34 86 11.63 80 27.89 21.62 18.35 15.52 4.87 16.52 60 18.08 52 12.83 10.43 8.77 8.08 1.02 7.27 83 8.08 75 17.04 15.75 14.40 13.39 10.87 14.15 56 12.11 90 29.15 28.22 27.29 25.06 22.97 26.97 56 23.50 89 12.45 10.80 9.59 8.50 7.56 8.97 58 7.28 99 7.81 6.76 6.07 4.42 3.48 4.30 75 2.82 100 8.96 7.97 6.60 5.82 4.23 5.12 83 3.87 100 10.41 9.29 8.66 8.13 6.90 7.69 81 6.17 100 10.92 10.27 9.23 8.40 7.75 7.04 100 6.56 100 0% 5% 10% 15% 20% 25% 30% s1 s 1 s1 s 1 s 1 s 1 s 1 s 1 s 1 s1 120 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank 3/31/13 YTD201220112010200920082007200620052004 15.60 13.93 13.25 12.10 7.37 11.34 86 11.63 80 21.72 17.93 15.30 10.83 -4.23 23.50 1 18.05 23 2.52 -0.44 -3.25 -5.95 -8.96 -9.91 98 -5.50 71 33.23 30.88 28.02 25.13 21.15 35.50 1 24.51 82 55.19 37.53 33.62 26.61 22.56 35.72 36 20.57 96 -23.82 -29.40 -31.81 -35.88 -38.74 -40.71 97 -28.92 21 4.50 0.79 -2.90 -9.16 -12.81 0.49 28 -9.77 78 29.98 21.53 19.90 15.90 12.37 18.61 64 23.48 9 13.67 10.86 8.89 6.98 2.85 8.27 53 4.70 88 28.23 26.31 24.36 21.39 17.34 11.42 100 22.25 58 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% s1 s 1 s 1 s 1 s 1 s 1 s 1 s 1 s1 s 1 121 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank 3/13 12/12 9/12 6/12 3/12 18.61 14.42 12.72 11.18 4.92 14.15 28 12.11 63 17.57 12.83 10.91 8.86 2.14 14.67 12 11.58 39 19.18 14.42 12.94 10.61 2.78 15.03 19 11.72 64 23.59 18.72 16.39 13.93 5.87 21.22 9 17.43 35 34.62 28.11 24.11 21.88 8.72 30.65 11 25.35 40 0% 5% 10% 15% 20% 25% 30% 35% 40% s 1 s 1 s 1 s 1 s 1 Systematic Financial Mgt Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 8.3 -17.8 -0.3 9.1 0.4 2.2 0.6 2.6 -0.8 3.9 2.9 1.0 -2.3 -7.4 4.3 5.7 -2.4 1.4 0.0 -0.3 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000V 122 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.06 1.78 0.50 -5.36 11.34 16.52 16.52 14.23 1.12 -0.83 0.97 1.15 14.61 3.15 -0.38 1 3 -3.01 11.63 18.08 18.08 12.12 1.48 4 8 1.31 1.24 0.58 -27.29 20.97 -11.58 44.73 28.64 1.27 -0.07 0.98 0.49 11.09 7.00 0.46 4 8 -21.47 15.97 -6.00 32.63 22.43 0.54 7 13 1.04 0.97 0.65 -27.29 25.37 -40.88 74.73 30.52 1.07 0.49 0.86 0.28 8.10 11.41 0.17 7 13 -24.89 22.70 -38.89 65.05 26.69 0.26 14 24 1.02 1.00 0.55 -27.29 25.37 -40.88 74.73 24.27 1.05 0.11 0.86 0.30 6.80 9.19 0.05 12 26 -24.89 22.70 -38.89 65.05 21.35 0.32 123 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios Annualized Rate of Return 16.017.318.619.921.222.523.825.126.427.729.0 9.0 10.1 11.2 12.3 13.4 14.5 15.6 16.7 17.8 18.9 20.0 s 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt 1 R2000V Median 14.155628.64100 12.119022.4345 14.4022.76 Annualized Rate of Return 21.022.323.624.926.227.528.830.131.432.734.0 5.0 5.9 6.8 7.7 8.6 9.5 10.4 11.2 12.1 13.0 13.9 s 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Systematic Financial Mgt 1 R2000V Median 8.975830.5286 7.289926.6948 9.5927.19 124 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR2000V 123 13,897,980 1,403,765 1,048,003 0.93 23.54 15.24 1.51 1.62 54.43 11.09 1,416 1,352,001 506,727 2.09 29.86 14.28 1.28 1.38 47.71 5.11 Ten Largest Holdings Dupont Fabros Techno Cno Finl Group Inc Susser Hldgs Corp U S Airways Group In Graphic Packaging Hl Infinity Ppty & Cas Brandywine Rlty Tr Hercules Offshore In Bankunited Inc Bbcn Bancorp Inc Market Value% of PortfolioQuarterly Ret 421,085 289,113 283,661 251,156 240,991 205,130 201,960 199,598 197,274 193,941 3.03 2.08 2.04 1.81 1.74 1.48 1.45 1.44 1.42 1.40 0.46 22.94 48.19 25.70 15.94 -3.00 23.32 20.06 5.69 13.33 Ten Best Performers Albany Molecular Res Mgic Invt Corp Wis Nexstar Broadcasting Swift Transn Co Landec Corp Valueclick Inc Susser Hldgs Corp Shutterfly Inc Lin Tv Corp Cray Inc Quarterly Ret 99.05 86.09 71.34 55.48 52.48 52.24 48.19 47.87 45.95 45.52 Ten Worst Performers Callon Pete Co Del Hovnanian Enterprise Alpha Natural Resour Walter Invt Mgmt Cor Homestreet Inc Brown Shoe Inc New Rudolph Technologies Vaalco Energy Inc Avg Technologies N V Texas Capital Bancsh Quarterly Ret -21.28 -17.57 -15.71 -13.41 -12.56 -12.54 -12.42 -12.25 -12.07 -9.75 125 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth PortfolioR2000V 123 13,897,980 1,403,765 1,048,003 0.93 23.54 15.24 1.51 1.62 54.43 11.09 1,416 1,352,001 506,727 2.09 29.86 14.28 1.28 1.38 47.71 5.11 Ten Best Contributors Susser Hldgs Corp Nexstar Broadcasting Albany Molecular Res Mgic Invt Corp Wis H & E Equipment Serv Cno Finl Group Inc Swift Transn Co U S Airways Group In Bank of the Ozarks I Evercore Partners In Market Value% of PortfolioQuarterly Ret 283,661 165,600 108,779 108,281 190,230 289,113 118,049 251,156 186,270 149,760 2.04 1.19 0.78 0.78 1.37 2.08 0.85 1.81 1.34 1.08 48.19 71.34 99.05 86.09 35.37 22.94 55.48 25.70 33.08 38.56 Ten Worst Contributors Walter Invt Mgmt Cor Callon Pete Co Del Hovnanian Enterprise Rudolph Technologies Texas Capital Bancsh Avg Technologies N V Alpha Natural Resour Vaalco Energy Inc Brown Shoe Inc New Homestreet Inc Market Value% of PortfolioQuarterly Ret 160,175 81,770 96,359 116,622 142,586 106,836 79,637 78,936 72,800 56,409 1.15 0.59 0.69 0.84 1.03 0.77 0.57 0.57 0.52 0.41 -13.41 -21.28 -17.57 -12.42 -9.75 -12.07 -15.71 -12.25 -12.54 -12.56 126 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 7.58 6.35 12.64 15.36 3.88 3.87 29.53 13.73 0.00 7.07 100.00 6.42 5.79 13.05 11.95 2.49 4.42 36.96 12.15 0.57 6.20 100.00 11.98 11.76 22.11 10.21 24.69 10.45 10.45 5.72 17.74 12.51 12.22 6.99 13.15 13.68 11.46 10.85 12.86 7.79 -3.35 10.81 11.66 -0.02 0.30 1.13 -0.53 0.51 -0.02 -0.71 -0.29 0.00 0.49 0.88 0.01 -0.03 -0.01 0.07 -0.00 0.00 -0.09 -0.06 0.09 -0.01 -0.03 -0.01 0.28 1.13 -0.46 0.51 -0.01 -0.80 -0.35 0.09 0.48 0.85 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.76% [ Actual Return 11.75% ] - [ Buy Hold Return 12.51% ] 127 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 3/13 % Allocation Energy 7.58 6.42 Materials 6.35 5.79 Industrials 12.64 13.05 Con. Discretionary 15.36 11.95 Consumer Staples 3.88 2.49 Health Care 3.87 4.42 Financials 29.53 36.96 Infomation Tech. 13.73 12.15 Telecom. Services 0.00 0.57 Utilities 7.07 6.20 Systematic Financial MgtR2000V % Return 11.98 12.22 11.76 6.99 22.11 13.15 10.21 13.68 24.69 11.46 10.45 10.85 10.45 12.86 5.72 7.79 -3.35 17.74 10.81 % Variance -0.01 0.28 1.13 -0.46 0.51 -0.01 -0.80 -0.35 0.09 0.48 128 City of Clearwater Employees Pension Fund International EQ Comp as of 3/31/13 Core Laboratories N Bhp Billiton Ltd Rio Tinto Plc Canadian Pac Railway Arm Hldgs Plc Novartis A G Agrium Inc Transocean Ltd Zug Nestle S A Icici Bk Ltd GICS Sector% Port Energy Materials Materials Industrials Information Technology Health Care Materials Energy Consumer Staples Financials 3.80 3.19 3.14 3.11 2.87 2.63 2.60 2.33 2.18 2.10 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 20.47 19.25 12.91 3.73 9.27 8.28 18.61 5.97 1.51 0.00 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ CompMSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 1.94 5.23 108,811 -7 2,107 110,910 1.94 5.23 108,811 -7 2,107 110,910 7.74 11.79 102,975 -37 7,972 110,910 5.37 5.49 105,215 -9,644 15,340 110,910 1.64 -0.40 99,806 -9,723 20,827 110,910 10.31 10.19 29,041 -9,723 91,592 110,910 5.70 5.12 20,000 -9,723 100,634 110,910 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 129 City of Clearwater Employees Pension Fund International EQ Comp as of 3/31/13 Cash & Equiv $3,474 3.13% Intl Equity $107,436 96.87% Periods from 5/01 to 3/13 Alpha Beta R-Squared 0.14 1.03 0.95 Annualized Return% 0.02.04.06.08.010.012.014.016.018.020.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 I 1 T Annualized Standard Deviation% I International EQ Comp 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.70 5.12 1.83 18.87 18.30 0.52 0.20 0.18 0.00 0.13 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 130 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 8.63 5.48 3.36 1.83 -2.29 1.94 74 5.23 28 17.90 12.03 9.60 7.68 1.05 7.74 74 11.79 26 10.03 4.99 1.81 0.19 -5.06 -0.70 80 2.89 38 12.62 8.09 5.69 4.59 1.28 5.37 57 5.49 53 24.59 19.90 17.58 15.71 12.19 19.05 34 16.18 65 6.94 2.32 0.96 -0.54 -2.60 1.64 32 -0.40 72 6.97 3.28 1.51 -0.31 -2.12 0.84 55 -0.71 79 8.20 5.40 3.74 2.37 0.45 3.50 55 2.09 79 11.56 8.37 6.66 4.93 3.68 6.02 58 4.70 78 12.13 9.08 7.42 5.87 4.36 6.87 58 5.85 78 16.93 13.63 11.60 10.08 8.18 10.31 70 10.19 73 -10% -5% 0% 5% 10% 15% 20% 25% 30% I 1 I 1 I 1 I1 I 1 I 1I 1 I 1 I1 I1 I1 131 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI EAFE Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 8.63 5.48 3.36 1.83 -2.29 1.94 74 5.23 28 25.98 20.86 18.42 16.22 7.47 17.61 60 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -15.04 70 -11.73 37 25.22 17.43 12.29 8.80 2.37 18.37 21 8.21 77 77.72 43.14 35.77 26.88 12.96 57.93 12 32.46 59 -24.43 -40.30 -43.42 -47.50 -56.53 -47.94 77 -43.06 46 40.61 18.45 12.26 8.10 0.74 11.02 59 11.63 53 35.58 29.50 26.18 22.37 11.79 27.62 37 26.85 42 37.04 20.88 15.57 11.84 6.45 13.15 66 14.01 58 30.79 23.81 19.98 16.98 10.27 17.66 71 20.69 41 58.62 44.30 37.87 32.72 24.34 31.06 83 39.16 41 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% I1 I1 I1 I 1 I 1 I1 I1 I1 I1 I1 I 1 132 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.82 1.08 0.25 -7.42 7.38 7.74 7.74 13.48 0.97 -0.85 0.94 0.57 7.86 3.25 -1.15 1 3 -6.85 6.98 11.79 11.79 13.21 0.88 4 8 1.01 1.02 0.50 -21.66 18.42 -15.04 31.72 21.76 1.05 -0.04 0.96 0.24 5.05 4.45 0.02 3 9 -18.95 16.53 -13.38 30.92 20.35 0.26 7 13 1.12 1.00 0.55 -26.42 31.05 -45.99 71.81 28.94 1.08 0.67 0.95 0.05 1.24 7.04 0.38 7 13 -20.50 25.85 -46.20 55.20 26.10 -0.03 16 31 1.03 1.00 0.49 -26.42 31.05 -47.94 71.81 22.66 1.03 0.15 0.95 0.19 4.07 4.94 0.13 16 31 -20.50 25.85 -46.20 58.14 21.47 0.17 133 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios Annualized Rate of Return 10.012.214.416.618.821.023.225.427.629.832.0 1.0 1.9 2.8 3.7 4.6 5.5 6.4 7.3 8.2 9.0 9.9 I1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp 1 MSCI EAFE Median 5.375721.7863 5.495320.3536 5.6921.01 Annualized Rate of Return 14.016.619.221.824.427.029.632.234.837.440.0 -8.0 -6.2 -4.3 -2.5 -0.7 1.0 2.8 4.6 6.4 8.2 10.0 I 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 1 MSCI EAFE Median 1.643228.9570 -0.407226.1039 0.9627.21 134 City of Clearwater Employees Pension Fund Earnest Partners as of 3/31/13 Arm Hldgs Plc Core Laboratories N Icici Bk Ltd Denso Corp Diageo Getinge Ab Is MSCI Emerge Shire Dnb Asa Everest Re Group Ltd GICS Sector% Port Information Technology Energy Financials Consumer Discretionary Consumer Staples Health Care Materials Health Care Financials Financials 5.20 4.05 3.80 3.24 3.00 2.98 2.97 2.84 2.76 2.51 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 14.02 11.24 8.81 6.74 3.00 12.54 30.10 10.81 2.73 0.00 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Earnest PartnersMSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Earnest Partners MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.32 5.23 39,235 -7 909 40,137 2.32 5.23 39,235 -7 909 40,137 10.17 11.79 36,461 -31 3,707 40,137 8.12 5.49 26,246 5,450 8,441 40,137 2.78 -1.49 29,002 5,449 5,686 40,137 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 135 City of Clearwater Employees Pension Fund Earnest Partners as of 3/31/13 Cash & Equiv $1,327 3.31% Intl Equity $38,811 96.69% Periods from 4/08 to 3/13 Alpha Beta R-Squared 1.22 1.07 0.96 Annualized Return% -2.00.02.04.06.08.010.012.014.016.018.020.022.024.026.0 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 e 1 T Annualized Standard Deviation% e Earnest Partners 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 2.78 -1.49 0.33 24.30 23.29 0.18 0.10 -0.08 0.00 0.86 Asset Allocation ($000) Risk/Return Analysis 136 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years 8.63 5.48 3.36 1.83 -2.29 2.32 66 5.23 28 17.90 12.03 9.60 7.68 1.05 10.17 43 11.79 26 10.03 4.99 1.81 0.19 -5.06 1.92 48 2.89 38 12.62 8.09 5.69 4.59 1.28 8.12 24 5.49 53 24.59 19.90 17.58 15.71 12.19 21.87 11 16.18 65 -10% -5% 0% 5% 10% 15% 20% 25% 30% e 1 e 1 e 1 e 1 e 1 137 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank 3/31/13 YTD2012201120102009 8.63 5.48 3.36 1.83 -2.29 2.32 66 5.23 28 25.98 20.86 18.42 16.22 7.47 17.18 65 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -6.88 14 -11.73 37 25.22 17.43 12.29 8.80 2.37 16.61 28 8.21 77 77.72 43.14 35.77 26.88 12.96 55.54 13 32.46 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% e 1 e 1 e 1 e 1 e 1 138 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank 3/13 12/12 9/12 6/12 3/12 12.62 8.09 5.69 4.59 1.28 8.12 24 5.49 53 11.75 7.36 5.05 3.93 0.85 8.36 17 4.04 72 11.95 7.24 4.50 2.78 -0.23 7.31 24 2.59 78 16.05 10.83 8.35 6.56 2.20 11.20 22 6.45 76 29.02 22.93 19.52 17.32 11.19 26.04 11 17.68 68 -5% 0% 5% 10% 15% 20% 25% 30% e 1 e 1 e 1 e 1 e 1 Earnest Partners Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.5 -4.6 6.5 5.2 1.3 3.4 2.0 3.1 2.4 0.0 3.9 -1.3-1.2 4.1 -1.9-2.4 1.7 2.1 -2.8 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI EAFE 139 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 3/31/13 Annualized Rate of Return 10.0 12.2 14.4 16.6 18.8 21.0 23.2 25.4 27.6 29.8 32.0 1.0 1.9 2.8 3.7 4.6 5.5 6.4 7.3 8.2 9.0 9.9 e 1 MedianRisk Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank e Earnest Partners 1 MSCI EAFE Median 8.122421.7163 5.495320.3536 5.6921.01 140 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth PortfolioMSCI EAFE 50 38,810,683 35,638,057 19,066,452 2.09 20.91 16.22 1.04 1.77 91.26 3.63 1.50 909 55,581,233 7,774,239 3.19 16.81 17.59 1.00 1.58 88.53 1.82 4.15 Ten Largest Holdings Arm Hldgs Plc Core Laboratories N Icici Bk Ltd Denso Corp Diageo Getinge Ab Is MSCI Emerge Shire Dnb Asa Everest Re Group Ltd Market Value% of PortfolioQuarterly Ret 1,965,883 1,530,912 1,437,150 1,224,915 1,134,503 1,126,300 1,122,456 1,074,170 1,044,100 947,978 5.20 4.05 3.80 3.24 3.00 2.98 2.97 2.84 2.76 2.51 12.00 26.53 -1.63 24.08 9.59 -7.52 -3.56 -0.30 16.09 18.56 Ten Best Performers Core Laboratories N Denso Corp Mindray Medical Intl Roche Holdings Ag Everest Re Group Ltd Transocean Ltd Zug Dnb Asa Novartis A G Uol Group Limited Rogers Communication Quarterly Ret 26.53 24.08 23.63 20.09 18.56 16.37 16.09 15.32 15.12 13.19 Ten Worst Performers Weichai Power Co Rio Tinto Plc Conwert Immobilien I Norsk Hydro Asa Societe Generale Erste Group Bank Ag Bhp Billiton Ltd Posco Komercni Banka Anhui Conch Cement Quarterly Ret -24.97 -17.48 -15.26 -13.62 -11.92 -11.91 -11.41 -10.27 -9.17 -8.83 141 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 3/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Australia Austria Belgium Bermuda Brazil Canada Cayman Islands Channel Islands China Colombia Czech Republic Denmark Finland France Germany Greece Hong Kong India Ireland Isle of Man Israel Italy Japan Kazakhstan Luxembourg Mexico Netherlands New Zealand Norway Panama 8.92 0.29 1.16 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 1.16 0.79 9.58 8.78 0.06 3.14 0.00 0.26 0.06 0.54 2.26 20.01 0.00 0.00 0.00 2.50 0.12 0.92 0.00 8.92 0.29 1.16 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 1.16 0.79 9.58 8.78 0.06 3.14 0.00 0.26 0.06 0.54 2.26 20.01 0.00 0.00 0.00 2.50 0.12 0.92 0.00 9.09 -2.02 11.78 1.37 7.12 5.78 2.71 2.87 17.07 3.26 15.91 7.94 4.36 -7.74 21.45 7.26 9.78 5.61 9.54 -4.57 8.88 -5.31 4.42 3.03 0.04 0.20 14.02 3.10 12.89 6.28 7.14 -10.14 11.69 4.50 11.52 0.77 2.35 5.01 0.00 0.00 3.44 1.65 0.18 0.00 8.78 2.03 1.16 0.00 0.00 1.27 1.85 0.00 2.11 3.85 1.98 0.00 0.26 0.00 7.53 0.00 0.00 0.00 3.62 0.00 5.40 1.95 0.00 4.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.14 0.00 0.00 1.24 1.81 0.00 10.82 0.00 0.00 0.00 0.00 0.00 7.35 0.00 0.00 0.00 0.42 0.00 3.66 0.00 -11.41 -6.23 7.10 13.19 -8.19 -9.61 -4.37 -4.26 -9.56 -3.98 4.48 -1.63 16.32 -2.04 19.94 19.94 6.56 -6.06 -11.41 -8.67 7.10 13.19 -8.33 -9.75 -4.37 -9.17 -11.92 -6.48 4.32 -1.63 16.32 -2.04 10.31 19.72 3.07 -6.06 0.06 -0.57 -0.02 -0.34 -0.17 -0.02 0.02 -0.88 -0.20 -0.12 0.03 0.03 0.61 0.50 -0.00 0.07 -0.39 0.10 0.00 0.02 0.40 -1.43 -0.03 0.00 -0.20 -0.20 -0.47 0.10 -0.02 0.00 0.05 -0.02 -0.02 -0.17 -0.15 -0.00 0.35 -0.00 -0.00 -0.04 -0.05 0.63 -0.04 -0.01 -0.00 -0.48 -0.21 0.24 0.22 -0.01 -0.84 -0.09 -0.05 -0.16 -0.13 0.03 -0.06 0.01 -0.02 -0.11 0.46 0.05 -0.12 -0.89 -0.68 -0.04 -0.10 0.05 -0.03 0.02 -1.72 -0.29 -0.11 0.01 0.02 0.28 0.22 -0.01 0.45 -0.45 0.10 -0.00 -0.04 0.35 -0.91 0.39 -0.01 -0.15 -0.31 Benchmark : MSCI EAFE Index Gross Dividend 142 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 3/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Portugal Scotland Singapore South Africa South Korea Spain Sweden Switzerland Taiwan United Kingdom United States 0.18 0.09 1.86 0.00 0.00 3.01 3.15 8.69 0.00 22.59 0.00 100.00 0.18 0.09 1.86 0.00 0.00 3.01 3.15 8.69 0.00 22.59 0.00 100.00 2.34 9.33 4.44 -2.83 10.02 15.56 9.84 10.03 -0.33 2.13 2.90 -5.35 10.08 11.70 2.60 5.27 0.00 0.00 3.50 0.00 2.22 1.65 3.28 7.03 2.14 17.22 8.52 100.00 0.00 0.00 3.42 0.00 0.00 1.61 3.20 1.96 0.00 8.19 50.29 100.00 7.51 -8.56 12.10 -7.57 16.71 -3.97 5.64 6.87 4.17 5.85 -8.56 9.18 -7.52 15.52 -3.97 2.45 6.87 2.24 0.01 0.00 -0.09 -0.22 0.17 -0.00 -0.09 -0.22 0.01 -0.85 -4.00 -0.00 0.00 0.05 -0.03 0.00 -0.06 0.36 2.39 2.86 0.11 -0.19 0.25 -0.58 0.08 -0.09 -0.72 0.59 -1.83 0.01 0.00 0.07 -0.41 0.39 -0.57 -0.07 -0.30 -0.36 2.12 -2.97 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x [Benchmark Local Return - Benchmark Total Local Return] Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x [ (Benchmark US$ Return - Benchmark Local Return) - (Benchmark Total US$ Return - Benchmark Total Local Return) ] Security Selection [Portfolio Active Weight] x [Portfolio Local Return - Benchmark Local Return] 143 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis Earnest Partners Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 12.62 12.24 9.07 4.63 2.69 13.40 32.04 10.37 2.93 0.00 100.00 7.69 9.82 12.58 10.70 11.61 9.79 24.72 4.34 4.89 3.86 100.00 7.33 -10.24 -5.18 10.48 9.59 8.40 1.66 6.18 0.94 2.27 -1.56 -4.68 5.77 7.50 11.20 12.50 5.38 5.26 6.23 -0.91 5.30 1.12 -0.68 -0.99 0.14 -0.04 -0.55 -1.19 0.10 -0.16 0.00 -2.26 -0.34 -0.24 -0.02 -0.13 -0.53 0.26 0.01 -0.00 -0.02 0.24 -0.77 0.78 -0.92 -1.01 0.00 -0.57 -0.29 -1.18 0.09 -0.17 0.24 -3.03 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.07% [ Actual Return 2.34% ] - [ Buy Hold Return 2.27% ] 144 City of Clearwater Employees Pension Fund WHV as of 3/31/13 Canadian Pac Railway Agrium Inc Nestle S A Noble Corporation Ba Bhp Billiton Ltd Canadian Natl Ry Co Rio Tinto Plc Schlumberger Ltd Diageo Potash Corp Sask Inc GICS Sector% Port Industrials Materials Consumer Staples Energy Materials Industrials Materials Energy Consumer Staples Materials 6.95 5.81 4.88 4.68 4.57 4.53 4.49 4.37 4.13 4.12 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 28.44 29.14 17.97 0.00 17.00 3.03 4.42 0.00 0.00 0.00 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 WHVMSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 WHV MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.76 5.23 31,677 -1 1,190 32,866 3.76 5.23 31,677 -1 1,190 32,866 9.51 11.79 30,019 -7 2,854 32,866 6.23 5.49 27,427 -16 5,455 32,866 -0.01 -1.49 29,002 -16 3,880 32,866 Portfolio Performance (%) Top Equity HoldingsGICS Sector Allocation 145 City of Clearwater Employees Pension Fund WHV as of 3/31/13 Cash & Equiv $2,148 6.53% Intl Equity $30,719 93.47% Periods from 4/08 to 3/13 Alpha Beta R-Squared 0.04 1.13 0.89 Annualized Return% -2.00.02.04.06.08.010.012.014.016.018.020.022.024.026.028.0 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 w 1 T Annualized Standard Deviation% w WHV 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.01 -1.49 0.33 26.04 23.29 0.18 -0.01 -0.08 0.00 -0.00 Asset Allocation ($000) Risk/Return Analysis 146 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years 8.63 5.48 3.36 1.83 -2.29 3.76 45 5.23 28 17.90 12.03 9.60 7.68 1.05 9.51 52 11.79 26 10.03 4.99 1.81 0.19 -5.06 -0.78 81 2.89 38 12.62 8.09 5.69 4.59 1.28 6.23 43 5.49 53 24.59 19.90 17.58 15.71 12.19 18.75 39 16.18 65 -10% -5% 0% 5% 10% 15% 20% 25% 30% w 1 w 1 w 1 w 1 w 1 147 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank 3/31/13 YTD2012201120102009 8.63 5.48 3.36 1.83 -2.29 3.76 45 5.23 28 25.98 20.86 18.42 16.22 7.47 16.97 67 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -13.64 58 -11.73 37 25.22 17.43 12.29 8.80 2.37 17.58 24 8.21 77 77.72 43.14 35.77 26.88 12.96 55.98 13 32.46 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% w 1 w 1 w 1 w 1 w 1 148 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank 3/13 12/12 9/12 6/12 3/12 12.62 8.09 5.69 4.59 1.28 6.23 43 5.49 53 11.75 7.36 5.05 3.93 0.85 5.90 39 4.04 72 11.95 7.24 4.50 2.78 -0.23 7.41 23 2.59 78 16.05 10.83 8.35 6.56 2.20 11.09 23 6.45 76 29.02 22.93 19.52 17.32 11.19 22.00 34 17.68 68 -5% 0% 5% 10% 15% 20% 25% 30% w 1 w 1 w 1 w 1 w 1 WHV Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% -8.4 -16.1 12.2 -0.3 -1.2 6.5 1.8 -2.0 1.2 7.6 2.9 -4.8 -6.3 6.6 -0.1 1.7 -0.2 -2.2 -1.4 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI EAFE 149 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 3/31/13 Annualized Rate of Return 10.0 12.2 14.4 16.6 18.8 21.0 23.2 25.4 27.6 29.8 32.0 1.0 1.9 2.8 3.7 4.6 5.5 6.4 7.3 8.2 9.0 9.9 w 1 MedianRisk Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 6.234324.6794 5.495320.3536 5.6921.01 150 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 3/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth PortfolioMSCI EAFE 36 30,718,644 56,600,868 27,879,501 1.98 21.40 16.99 0.00 2.12 54.32 1.04 6.59 909 55,581,233 7,774,239 3.19 16.81 17.59 1.00 1.58 88.53 1.82 4.15 Ten Largest Holdings Canadian Pac Railway Agrium Inc Nestle S A Noble Corporation Ba Bhp Billiton Ltd Canadian Natl Ry Co Rio Tinto Plc Schlumberger Ltd Diageo Potash Corp Sask Inc Market Value% of PortfolioQuarterly Ret 2,126,661 1,777,425 1,492,882 1,432,533 1,399,394 1,386,648 1,373,559 1,336,787 1,264,692 1,261,103 6.95 5.81 4.88 4.68 4.57 4.53 4.49 4.37 4.13 4.12 28.74 -1.92 11.20 9.93 -11.41 10.68 -17.48 8.50 8.97 -3.06 Ten Best Performers Canadian Pac Railway Core Laboratories N Partnerre Hldgs Ltd Transocean Ltd Zug Novartis A G Ingersoll-Rand Plc Eaton Corp Plc Nabors Industries Lt Canadian Nat Res Ltd Nestle S A Quarterly Ret 28.74 26.53 16.54 16.37 15.32 15.14 13.77 12.52 11.71 11.20 Ten Worst Performers Teck Resources Ltd Vale S A Rio Tinto Plc Bhp Billiton Ltd Suncor Energy Inc Ne Yara Intl Asa Basf Ag Axa Sa Potash Corp Sask Inc Tenaris S A Quarterly Ret -22.53 -17.51 -17.48 -11.41 -8.61 -8.32 -7.58 -5.32 -3.06 -2.72 151 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 3/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Australia Austria Belgium Bermuda Brazil Canada Cayman Islands Channel Islands China Denmark Finland France Germany Greece Hong Kong Ireland Isle of Man Israel Italy Japan Kazakhstan Luxembourg Mexico Netherland Antilles Netherlands New Zealand Norway Portugal Scotland Singapore 8.92 0.29 1.16 0.00 0.00 0.00 0.00 0.20 0.00 1.16 0.79 9.58 8.78 0.06 3.14 0.26 0.06 0.54 2.26 20.01 0.00 0.00 0.00 0.00 2.50 0.12 0.92 0.18 0.09 1.86 8.92 0.29 1.16 0.00 0.00 0.00 0.00 0.20 0.00 1.16 0.79 9.58 8.78 0.06 3.14 0.26 0.06 0.54 2.26 20.01 0.00 0.00 0.00 0.00 2.50 0.12 0.92 0.18 0.09 1.86 9.09 -2.02 11.78 1.37 7.12 5.78 2.71 2.87 17.07 3.26 15.91 7.94 4.36 -7.74 21.45 7.26 9.78 5.61 2.34 9.33 4.44 9.54 -4.57 8.88 -5.31 4.42 3.03 0.04 0.20 14.02 3.10 12.89 6.28 7.14 -10.14 11.69 4.50 11.52 0.77 -0.33 2.13 2.90 5.57 0.00 0.00 5.03 4.62 30.11 4.54 0.00 0.00 0.00 0.00 0.56 3.05 0.00 0.00 3.07 0.00 0.00 0.00 0.00 0.00 3.45 0.00 4.30 5.87 0.00 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -11.41 9.91 -17.02 4.84 9.93 -5.32 -7.58 15.14 -2.72 8.50 17.18 -8.32 -11.41 9.91 -17.02 4.84 9.93 -5.32 -7.58 15.14 -2.72 8.50 17.18 -8.32 0.03 0.03 -0.02 -0.50 -0.46 -3.02 -0.46 0.02 0.03 0.03 0.66 0.41 -0.00 0.21 0.16 0.00 0.03 0.40 -2.28 -0.35 -0.43 -0.09 0.00 0.03 0.01 0.00 0.10 -0.47 -0.01 -0.02 0.00 -0.02 -0.02 -0.20 -0.18 -0.00 -0.14 -0.00 -0.00 -0.04 -0.05 1.00 -0.05 -0.01 0.00 -0.00 0.00 -0.06 -1.14 0.50 -0.79 1.46 0.45 -0.04 -0.32 -0.02 -0.09 0.37 0.58 -0.02 -1.58 0.03 -0.04 -0.01 -1.25 -1.56 -0.00 0.02 0.01 0.02 0.42 -0.09 -0.01 0.07 0.14 -0.00 -0.01 0.35 -1.28 -0.44 -0.07 0.44 -0.01 0.01 0.01 0.00 0.04 Benchmark : MSCI EAFE Index Gross Dividend 152 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 3/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total South Africa Spain Sweden Switzerland United Kingdom United States 0.00 3.01 3.15 8.69 22.59 0.00 100.00 0.00 3.01 3.15 8.69 22.59 0.00 100.00 -2.83 10.02 15.56 9.84 10.03 -5.35 10.08 11.70 2.60 5.27 0.00 0.00 0.00 16.29 13.38 0.00 100.00 0.00 0.00 0.00 0.00 0.00 100.00 100.00 10.16 -2.77 3.74 10.16 -2.77 3.74 0.39 0.00 0.42 0.02 -4.61 -0.07 -0.15 -0.08 0.56 4.76 4.74 -0.88 -1.69 -1.64 0.32 -0.15 -0.54 -1.11 4.76 -1.51 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x [Benchmark Local Return - Benchmark Total Local Return] Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x [ (Benchmark US$ Return - Benchmark Local Return) - (Benchmark Total US$ Return - Benchmark Total Local Return) ] Security Selection [Portfolio Active Weight] x [Portfolio Local Return - Benchmark Local Return] 153 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis WHV Quarter Ending 3/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 27.96 34.46 13.39 0.00 16.80 2.86 4.53 0.00 0.00 0.00 100.00 7.69 9.82 12.58 10.70 11.61 9.79 24.72 4.34 4.89 3.86 100.00 8.40 -9.47 19.32 8.59 15.32 4.10 3.74 -1.56 -4.68 5.77 7.50 11.20 12.50 5.38 5.26 6.23 -0.91 5.30 2.79 -1.65 1.81 0.00 -0.44 0.08 -0.06 0.00 0.00 0.00 2.53 -1.39 -2.46 0.00 -0.24 0.31 -0.50 -0.02 0.00 -0.05 0.24 -4.09 1.39 -4.11 1.82 -0.24 -0.13 -0.42 -0.07 0.00 -0.05 0.24 -1.56 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.30% [ Actual Return 4.04% ] - [ Buy Hold Return 3.74% ] 154 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 3/31/13 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Eaton Vance MgmtMSCI Emg Mkts Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Eaton Vance Mgmt MSCI Emg Mkts Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.02 -1.57 37,899 0 8 37,907 0.02 -1.57 37,899 0 8 37,907 3.87 2.30 36,496 0 1,411 37,907 3.86 3.59 26,469 7,614 3,823 37,907 0.40 -0.18 8,277 7,536 22,094 37,907 Portfolio Performance (%) 155 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 3/31/13 Cash & Equiv $0 0.00% Intl Equity $37,907 100.00% Periods from 4/08 to 3/13 Alpha Beta R-Squared 0.05 0.99 0.98 Annualized Return% -5.00.05.010.015.020.025.030.0 -0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 v 1 T Annualized Standard Deviation% v Eaton Vance Mgmt 1 MSCI Emg Mkts T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 0.40 -0.18 0.33 26.93 28.21 0.18 0.00 -0.02 0.00 0.00 Asset Allocation ($000) Risk/Return Analysis 156 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years 4.43 1.55 -0.25 -1.13 -3.55 0.02 37 -1.57 79 15.24 9.01 5.73 2.40 -0.31 3.87 63 2.30 76 9.96 4.14 1.16 -3.79 -6.56 -2.48 71 -3.26 73 14.71 7.31 6.03 4.13 2.37 3.86 81 3.59 81 25.04 23.49 21.60 18.31 13.78 20.30 69 19.19 73 -10% -5% 0% 5% 10% 15% 20% 25% 30% v 1 v 1 v 1 v 1 v 1 157 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank 3/31/13 YTD2012201120102009 4.43 1.55 -0.25 -1.13 -3.55 0.02 37 -1.57 79 26.15 22.35 19.28 16.78 7.47 18.55 56 18.62 55 -1.50 -11.22 -17.61 -21.19 -25.62 -19.27 71 -18.17 58 28.11 23.83 19.98 17.57 7.41 23.33 27 19.19 58 88.77 79.38 73.62 69.33 28.25 67.01 78 79.02 25 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% v 1 v1 v 1 v1 v 1 158 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank 3/13 12/12 9/12 6/12 3/12 12.62 8.09 5.69 4.59 1.28 3.86 83 3.59 84 11.75 7.36 5.05 3.93 0.85 5.68 41 4.98 51 11.95 7.24 4.50 2.78 -0.23 5.79 36 5.96 34 16.05 10.83 8.35 6.56 2.20 10.56 28 10.10 32 29.02 22.93 19.52 17.32 11.19 26.34 10 25.42 12 -5% 0% 5% 10% 15% 20% 25% 30% v 1 v 1 v1 v 1 v 1 Eaton Vance Mgmt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 5.4 -0.6 -6.8 2.3 0.5 -2.6 2.9 0.0 0.40.2 -1.4 0.5 1.8 -2.2 0.0 1.3 -1.3 -0.1 1.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI Emg Mkts 159 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 3/31/13 Annualized Rate of Return 10.0 12.4 14.8 17.2 19.6 22.0 24.4 26.8 29.2 31.6 34.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 w 1 MedianRisk Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 6.234024.67100 5.496220.3542 6.0321.96 160 City of Clearwater Employees Pension Fund Fixed Income Comp as of 3/31/13 United States Treas United States Treas United States Treas United States Treas FNMA Ci 15 - Tba Apr United States Treas FNMA Pool Al1849 United States Treas FNMA Cl 30 - Tba Apr FNMA Ci 15 - Tba Apr Sector% Port Government Government Government Government Mortgage Government Mortgage Government Mortgage Mortgage 2.22 2.17 1.93 1.52 1.50 1.44 1.28 1.10 0.99 0.93 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 19.23 18.58 19.54 33.71 1.60 1.63 3.76 1.20 0.76 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Fixed Income CompBC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Fixed Income Comp BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.24 -0.12 210,840 2,741 515 214,097 0.24 -0.12 210,840 2,741 515 214,097 4.95 3.77 206,131 -2,031 9,996 214,097 5.94 5.52 185,442 -5,286 33,941 214,097 6.62 5.47 216,239 -3,894 1,752 214,097 5.46 5.03 189,401 -3,894 28,590 214,097 6.88 7.16 59,224 -3,894 158,767 214,097 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Fixed Income HoldingsSector Allocation 161 City of Clearwater Employees Pension Fund Fixed Income Comp as of 3/31/13 Other $23 0.01% Domestic Equity $3 0.00% Cash & Equiv $26,668 12.46% Domestic Fixed $187,403 87.53% Periods from 12/87 to 3/13 Alpha Beta R-Squared 0.26 0.59 0.57 Annualized Return% 1.01.52.02.53.03.54.04.5 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 F 1 T Annualized Standard Deviation% F Fixed Income Comp 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 6.88 7.16 3.86 3.08 4.05 1.24 0.98 0.81 0.00 -0.13 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 162 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low F Fixed Income Comp Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 3.74 0.89 0.35 0.01 -1.10 0.24 58 -0.12 83 13.59 8.18 5.59 3.80 0.90 4.95 56 3.77 75 11.90 8.12 6.50 5.20 1.24 5.90 60 5.73 67 11.96 8.30 6.46 5.23 1.12 5.94 59 5.52 70 19.04 10.47 7.71 5.87 0.91 8.15 44 6.06 70 11.14 7.76 6.16 5.07 1.25 6.62 41 5.47 66 9.16 7.38 6.37 5.42 2.00 6.51 45 5.83 68 9.15 7.36 6.39 5.61 2.91 6.58 43 5.94 67 8.63 6.79 5.93 5.26 3.29 6.08 43 5.47 69 8.44 6.27 5.44 4.77 3.16 5.53 46 4.98 70 9.09 6.60 5.50 4.86 3.28 5.46 53 5.03 69 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% F1 F 1 F1 F1 F 1 F 1 F1 F1 F1 F1 F1 163 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low F Fixed Income Comp Net Ret Rank 1 BC Agg Net Ret Rank 3/31/13 YTD2012201120102009200820072006200520042003 3.74 0.89 0.35 0.01 -1.10 0.24 58 -0.12 83 17.18 10.36 6.83 4.20 1.12 6.53 53 4.22 74 16.09 7.83 6.14 3.55 -0.28 5.94 53 7.84 24 16.77 10.20 7.27 5.69 0.51 7.37 48 6.54 62 45.09 16.76 9.88 5.85 -0.57 12.37 40 5.93 74 9.60 5.21 1.87 -6.93 -25.82 2.54 46 5.24 24 10.17 7.51 6.53 5.05 2.16 5.94 61 6.96 40 12.18 5.39 4.59 4.14 2.59 5.05 31 4.33 65 6.94 3.16 2.60 2.07 1.33 2.59 50 2.43 59 11.29 5.48 4.44 3.29 1.34 3.93 65 4.34 53 26.13 6.87 4.62 3.67 1.69 3.77 73 4.11 65 -30% -20% -10% 0% 10% 20% 30% 40% 50% F1 F1 F1 F1 F 1 F 1 F1 F1 F1 F1 F1 164 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.20 -2.00 0.75 0.24 2.32 4.95 4.95 1.90 0.90 0.38 0.82 2.55 5.38 0.97 1.18 1 3 -0.12 2.06 3.77 3.77 2.11 1.73 1 11 0.99 0.10 0.67 -0.39 2.76 4.29 7.10 1.94 0.56 0.68 0.71 3.00 10.34 1.80 0.20 2 10 -1.30 3.82 3.77 7.84 3.07 1.76 4 16 1.21 1.13 0.65 -2.54 5.72 0.73 15.87 3.97 0.94 0.36 0.62 1.58 6.69 2.56 0.43 4 16 -1.30 4.57 3.13 10.56 3.38 1.52 16 85 0.90 0.29 0.49 -2.54 5.72 -0.07 15.87 3.08 0.59 0.26 0.57 0.98 5.13 2.60 -0.13 20 81 -2.87 7.96 -3.23 18.48 4.05 0.81 165 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return 0.01.02.03.04.05.06.07.08.0 -1.0 0.5 2.0 3.5 5.0 6.5 8.0 9.5 11.0 12.5 14.0 F 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp 1 BC Agg Median 5.94591.9416 5.52703.0753 6.463.04 Annualized Rate of Return 0.02.04.06.08.010.012.014.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 F 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 1 BC Agg Median 6.62413.9743 5.47663.3828 6.164.37 166 City of Clearwater Employees Pension Fund Dodge & Cox as of 3/31/13 United States Treas United States Treas United States Treas FNMA Pool Al1849 United States Treas Xerox Corp Sr Nt 6.4 Aol Time Warner Inc FNMA Pool #ad0494 Fhlm Pool E02697 FHLMC Pool #1q1467 A Sector% Port Government Government Government Mortgage Government Industrials Industrials Mortgage Mortgage Mortgage 4.13 4.03 2.67 2.37 2.04 1.56 1.50 1.36 1.28 1.26 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 22.10 16.09 19.92 30.39 2.22 1.88 6.26 0.63 0.51 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 Dodge & CoxBC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 Dodge & Cox BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.64 -0.12 114,596 -1 731 115,327 0.64 -0.12 114,596 -1 731 115,327 5.76 3.77 113,988 -5,004 6,342 115,327 6.20 5.52 100,646 -5,008 19,689 115,327 7.07 5.47 102,928 -7,423 19,822 115,327 5.76 5.02 75,656 -7,423 47,094 115,327 Portfolio Performance (%) Top Fixed Income HoldingsSector Allocation 167 City of Clearwater Employees Pension Fund Dodge & Cox as of 3/31/13 Cash & Equiv $2,483 2.15% Domestic Fixed $112,844 97.85% Periods from 2/04 to 3/13 Alpha Beta R-Squared 0.32 0.83 0.55 Annualized Return% 0.51.01.52.02.53.03.54.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 d 1 T Annualized Standard Deviation% d Dodge & Cox 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.76 5.02 1.82 3.47 3.34 0.57 1.14 0.96 0.00 0.26 Asset Allocation ($000) Risk/Return Analysis 168 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low d Dodge & Cox Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 3.74 0.89 0.35 0.01 -1.10 0.64 32 -0.12 83 13.59 8.18 5.59 3.80 0.90 5.76 46 3.77 75 11.90 8.12 6.50 5.20 1.24 6.17 55 5.73 67 11.96 8.30 6.46 5.23 1.12 6.20 53 5.52 70 19.04 10.47 7.71 5.87 0.91 8.99 36 6.06 70 11.14 7.76 6.16 5.07 1.25 7.07 33 5.47 66 9.16 7.38 6.37 5.42 2.00 6.74 39 5.83 68 9.15 7.36 6.39 5.61 2.91 6.81 36 5.94 67 8.63 6.79 5.93 5.26 3.29 6.29 35 5.47 69 8.44 6.27 5.44 4.77 3.16 5.75 38 4.98 70 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% d 1 d 1 d1 d1 d 1 d 1 d 1 d 1 d 1 d 1 169 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low d Dodge & Cox Net Ret Rank 1 BC Agg Net Ret Rank 3/31/13 YTD20122011201020092008200720062005 3.74 0.89 0.35 0.01 -1.10 0.64 32 -0.12 83 17.18 10.36 6.83 4.20 1.12 7.85 42 4.22 74 16.09 7.83 6.14 3.55 -0.28 5.10 60 7.84 24 16.77 10.20 7.27 5.69 0.51 7.53 46 6.54 62 45.09 16.76 9.88 5.85 -0.57 14.53 29 5.93 74 9.60 5.21 1.87 -6.93 -25.82 1.37 52 5.24 24 10.17 7.51 6.53 5.05 2.16 5.47 67 6.96 40 12.18 5.39 4.59 4.14 2.59 5.62 22 4.33 65 6.94 3.16 2.60 2.07 1.33 2.40 61 2.43 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% d1 d 1 d 1d1 d 1 d 1d1 d1 d1 170 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Fixed Income Portfolios High 1st Qt Median 3rd Qt Low d Dodge & Cox Return Rank 1 BC Agg Return Rank 3/13 12/12 9/12 6/12 3/12 11.96 8.30 6.46 5.23 1.12 6.20 53 5.52 70 13.45 8.82 7.02 5.40 1.34 6.82 53 6.19 65 13.74 9.27 7.25 5.66 1.11 7.08 53 6.19 67 16.63 10.87 8.20 6.15 1.07 8.14 50 6.93 66 21.52 12.49 8.52 6.20 0.78 10.08 34 6.84 66 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% d1 d 1 d 1 d 1 d 1 Dodge & Cox Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 0.8 -2.4 -1.2 -0.5 5.1 1.9 1.5 0.6 -1.1 0.0 1.4 0.8 -0.4 -2.9 0.0 2.3 -0.6 1.1 0.7 0.8 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 171 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.30 -5.24 0.75 0.64 2.67 5.76 5.76 1.79 0.78 0.68 0.58 3.15 7.26 1.54 1.25 1 3 -0.12 2.06 3.77 3.77 2.11 1.73 0 12 0.98 -0.55 0.50 0.13 2.67 4.12 8.00 1.72 0.31 1.08 0.26 3.55 19.62 2.75 0.21 2 10 -1.30 3.82 3.77 7.84 3.07 1.76 3 17 1.25 0.80 0.55 -2.88 6.98 -0.26 17.78 4.23 0.79 0.66 0.39 1.59 8.53 3.55 0.42 4 16 -1.30 4.57 3.13 10.56 3.38 1.52 7 29 1.07 0.63 0.56 -2.88 6.98 -0.26 17.78 3.71 0.83 0.32 0.55 1.06 4.75 2.77 0.26 10 26 -2.44 4.57 -0.81 10.56 3.44 0.92 172 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return 0.01.02.03.04.05.06.07.08.0 -1.0 0.5 2.0 3.5 5.0 6.5 8.0 9.5 11.0 12.5 14.0 d1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox 1 BC Agg Median 6.20531.7213 5.52703.0753 6.463.04 Annualized Rate of Return 0.02.04.06.08.010.012.014.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 d 1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge & Cox 1 BC Agg Median 7.07334.2346 5.47663.3828 6.164.37 173 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 3/13 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity PortfolioBC Agg 188 112,843,974 1.83 11.67 5.11 4.79 0.43 4.40 6.47 8,286 16,968,824,389,632 1.86 7.20 3.47 5.29 -0.13 5.26 7.20 Yield to Maturity 5+ 4.6% 4 - 514.3% 3 - 413.1% 2 - 323.4% 1 - 222.5% 0 - 122.2% Time to Maturity 10+ 44.5% 7 - 107.3% 5 - 713.0% 3 - 513.7% 1 - 39.4% 0 - 112.0% Coupon 11+ 0.0% 9 - 111.1% 7 - 915.6% 5 - 750.7% 3 - 515.1% 0 - 317.5% Quality NR 3.9% B 0.5% BA 2.0% BAA 30.0% A 15.8% AA 2.9% AAA 29.0% GOVT 16.0% Duration 8+ 18.0% 6 - 85.7% 4 - 620.8% 3 - 422.0% 1 - 321.3% 0 - 112.2% Effective Duration 8+ 17.1% 6 - 85.1% 4 - 615.8% 3 - 412.4% 1 - 333.6% 0 - 116.1% 174 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 3/31/13 Name Moody’s Quality Ratings Aaa Aa A Baa Ba B Other NR Total Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash Other Total 16.09 13.84 2.25 0.81 --- --- 0.81 --- --- 28.08 --- 7.58 19.06 1.44 --- --- --- 44.98 --- --- --- 1.75 --- --- 1.12 0.63 0.41 --- --- --- --- --- 0.79 --- --- 2.94 --- --- --- 9.52 5.28 --- 4.25 --- 0.78 --- --- --- --- --- 5.47 --- --- 15.77 --- --- --- 28.93 13.66 1.39 13.88 --- 1.03 --- --- --- --- --- --- --- --- 29.96 --- --- --- 1.99 0.98 --- 1.00 --- --- --- --- --- --- --- --- --- --- 1.99 --- --- --- 0.48 --- 0.48 --- --- --- --- --- --- --- --- --- --- --- 0.48 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 1.04 --- --- 1.04 --- --- 2.31 0.32 1.30 0.69 --- --- --- 0.51 3.87 16.09 13.84 2.25 44.52 19.92 1.87 22.10 0.63 2.22 30.39 0.32 8.88 19.75 1.44 6.26 --- 0.51 100.00 175 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 3/13 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 23.59 16.98 19.58 28.54 2.26 1.41 7.01 0.63 0.00 100.00 10.16 42.87 11.71 30.66 0.42 1.99 0.01 2.18 0.00 100.00 1.06 0.15 0.44 1.48 0.94 0.33 1.87 1.02 0.95 0.79 -0.17 -0.46 0.70 -0.33 -0.62 0.44 -0.08 0.00 0.15 0.06 0.05 0.18 0.22 0.03 0.01 0.10 0.01 0.00 0.67 0.09 0.08 -0.05 -0.01 -0.01 0.00 0.02 0.00 -0.00 0.13 0.15 0.14 0.13 0.21 0.02 0.02 0.12 0.01 0.00 0.79 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.30% [ Actual Return 0.65% ] - [ Buy Hold Return 0.95% ] 176 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 3/31/13 United States Treas United States Treas FNMA Ci 15 - Tba Apr FNMA Cl 30 - Tba Apr FNMA Ci 15 - Tba Apr FNMA Cl 30 - Tba May United States Treas GNMA Ii Sf 30 - Tba Federal Home Ln Bks FNMA Cl 30 - Tba Apr Sector% Port Government Government Mortgage Mortgage Mortgage Mortgage Government Mortgage Government Mortgage 4.51 3.56 3.51 2.31 2.18 1.69 1.66 1.64 1.38 1.28 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 14.89 22.34 18.95 38.72 0.66 1.25 0.00 2.05 1.14 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co.BC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co. BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -0.24 -0.12 91,744 -2 -217 91,526 -0.24 -0.12 91,744 -2 -217 91,526 4.14 3.77 87,894 -10 3,642 91,526 5.69 5.52 77,571 -54 14,008 91,526 6.03 5.47 102,746 -54 -11,167 91,526 5.54 5.20 74,568 -54 17,011 91,526 Portfolio Performance (%) Top Fixed Income HoldingsSector Allocation 177 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 3/31/13 Other $23 0.02% Cash & Equiv $16,945 18.51% Domestic Fixed $74,559 81.46% Periods from 9/04 to 3/13 Alpha Beta R-Squared 0.03 1.07 0.91 Annualized Return% 0.51.01.52.02.53.03.54.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 w 1 T Annualized Standard Deviation% w Western Asset Management 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.54 5.20 1.86 3.60 3.23 1.01 1.02 1.03 0.00 0.29 Asset Allocation ($000) Risk/Return Analysis 178 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years 3.74 0.89 0.35 0.01 -1.10 -0.24 86 -0.12 83 13.59 8.18 5.59 3.80 0.90 4.14 67 3.77 75 11.90 8.12 6.50 5.20 1.24 5.74 66 5.73 67 11.96 8.30 6.46 5.23 1.12 5.69 65 5.52 70 19.04 10.47 7.71 5.87 0.91 7.09 57 6.06 70 11.14 7.76 6.16 5.07 1.25 6.03 53 5.47 66 9.16 7.38 6.37 5.42 2.00 6.17 57 5.83 68 9.15 7.36 6.39 5.61 2.91 6.28 56 5.94 67 8.63 6.79 5.93 5.26 3.29 5.81 57 5.47 69 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% w1 w1 w1w1 w 1 w1 w1 w1 w1 179 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Net Ret Rank 1 BC Agg Net Ret Rank 3/31/13 YTD20122011201020092008200720062005 3.74 0.89 0.35 0.01 -1.10 -0.24 86 -0.12 83 17.18 10.36 6.83 4.20 1.12 5.07 64 4.22 74 16.09 7.83 6.14 3.55 -0.28 7.23 36 7.84 24 16.77 10.20 7.27 5.69 0.51 7.09 52 6.54 62 45.09 16.76 9.88 5.85 -0.57 9.24 53 5.93 74 9.60 5.21 1.87 -6.93 -25.82 3.92 38 5.24 24 10.17 7.51 6.53 5.05 2.16 6.51 50 6.96 40 12.18 5.39 4.59 4.14 2.59 4.66 46 4.33 65 6.94 3.16 2.60 2.07 1.33 2.77 41 2.43 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% w1 w1 w1 w1 w 1 w1 w1 w1 w1 180 City of Clearwater Employees Pension Fund March 31, 2013 Cumulative Performance Comparison Total Returns of Fixed Income Portfolios High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Return Rank 1 BC Agg Return Rank 3/13 12/12 9/12 6/12 3/12 11.96 8.30 6.46 5.23 1.12 5.69 65 5.52 70 13.45 8.82 7.02 5.40 1.34 6.46 59 6.19 65 13.74 9.27 7.25 5.66 1.11 6.45 63 6.19 67 16.63 10.87 8.20 6.15 1.07 7.36 59 6.93 66 21.52 12.49 8.52 6.20 0.78 8.09 54 6.84 66 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% w 1 w 1 w 1 w 1 w 1 Western Asset Management Co. Value Added Analysis - Net of Fee 6/089/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/13 -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 0.1 -1.7 0.6 -0.2 2.3 0.9 0.1 0.2 -0.1 0.3 0.2 0.1 0.0 -0.8 0.2 0.3 0.0 0.4 0.1 -0.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 181 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.13 1.94 0.50 -0.24 2.04 4.14 4.14 2.32 1.09 0.01 0.97 1.73 3.71 0.45 0.80 1 3 -0.12 2.06 3.77 3.77 2.11 1.73 2 10 1.02 0.93 0.58 -1.09 3.35 4.14 7.37 2.75 0.89 0.19 0.96 2.02 6.28 0.68 0.22 2 10 -1.30 3.82 3.77 7.84 3.07 1.76 5 15 1.15 1.52 0.65 -2.17 5.22 1.91 14.60 3.98 1.11 0.00 0.88 1.43 5.13 1.49 0.37 4 16 -1.30 4.57 3.13 10.56 3.38 1.52 10 24 1.09 1.25 0.62 -2.17 5.22 -0.46 14.60 3.60 1.07 0.03 0.91 1.02 3.43 1.16 0.29 9 25 -1.30 4.57 -0.81 10.56 3.23 1.03 182 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return 0.01.02.03.04.05.06.07.08.0 -1.0 0.5 2.0 3.5 5.0 6.5 8.0 9.5 11.0 12.5 14.0 w 1 MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 3/31/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co. 1 BC Agg Median 5.69652.7541 5.52703.0753 6.463.04 Annualized Rate of Return 0.02.04.06.08.010.012.014.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 w1 MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 3/31/13 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank w Western Asset Management Co. 1 BC Agg Median 6.03533.9843 5.47663.3828 6.164.37 183 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 3/13 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity PortfolioBC Agg 330 74,558,544 2.20 17.63 3.99 6.40 0.42 5.87 9.10 8,286 16,968,824,000,000 1.86 7.20 3.47 5.29 -0.13 5.26 7.20 Yield to Maturity 5+ 3.8% 4 - 55.9% 3 - 415.8% 2 - 326.2% 1 - 231.5% 0 - 116.7% Time to Maturity 10+ 56.4% 7 - 1015.0% 5 - 74.8% 3 - 510.5% 1 - 38.2% 0 - 15.1% Coupon 11+ 0.1% 9 - 111.1% 7 - 93.9% 5 - 731.2% 3 - 530.2% 0 - 333.4% Quality NR 2.1% B 0.0% BA 0.3% BAA 16.8% A 15.6% AA 3.6% AAA 45.2% GOVT 16.4% Duration 8+ 24.8% 6 - 88.4% 4 - 620.7% 3 - 425.9% 1 - 315.2% 0 - 15.1% Effective Duration 8+ 23.8% 6 - 88.6% 4 - 616.3% 3 - 419.6% 1 - 324.9% 0 - 16.9% 184 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 3/31/13 Name Moody’s Quality Ratings Aaa Aa A Baa Ba B Other NR Total Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash Other Total 21.50 14.98 6.52 1.92 1.10 --- --- 0.82 --- 38.18 9.10 4.76 21.65 2.68 --- --- --- 61.60 0.28 --- 0.28 2.70 0.79 --- 1.09 0.83 0.06 0.54 --- --- --- 0.54 --- --- --- 3.57 0.09 --- 0.09 15.54 8.01 1.05 6.47 --- --- --- --- --- --- --- --- --- --- 15.63 0.47 --- 0.47 15.74 9.06 0.20 6.07 0.41 0.60 --- --- --- --- --- --- --- --- 16.80 --- --- --- 0.32 --- --- 0.32 --- --- --- --- --- --- --- --- --- --- 0.32 --- --- --- 0.01 --- --- 0.01 --- --- --- --- --- --- --- --- --- --- 0.01 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 0.92 --- --- 0.92 --- --- --- --- --- --- --- --- --- 1.14 2.07 22.34 14.98 7.36 37.15 18.96 1.25 14.88 2.06 0.66 38.72 9.10 4.76 21.65 3.22 --- --- 1.14 100.00 185 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 3/13 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 14.89 24.13 18.21 38.21 0.85 1.18 0.00 1.90 0.63 100.00 10.16 42.87 11.71 30.66 0.42 1.99 0.01 2.18 0.00 100.00 0.81 -1.04 -0.92 0.69 -1.33 -2.44 0.00 -0.74 -0.09 0.79 -0.17 -0.46 0.70 -0.33 -0.62 0.44 -0.08 0.00 0.15 0.00 -0.21 -0.08 -0.00 -0.01 -0.02 -0.00 -0.01 0.00 -0.34 0.03 0.06 -0.04 0.04 -0.00 0.01 -0.00 0.00 -0.00 0.10 0.03 -0.15 -0.12 0.04 -0.01 -0.02 -0.00 -0.01 -0.00 -0.24 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.27% [ Actual Return -0.36% ] - [ Buy Hold Return -0.09% ] 186 City of Clearwater Employees Pension Fund Real Estate Comp as of 3/31/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Real Estate CompPolicy Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Real Estate Comp Policy Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.35 5.85 76,713 0 3,335 80,048 4.35 5.85 76,713 0 3,335 80,048 8.32 12.85 73,426 467 6,155 80,048 14.19 15.61 55,133 -1,423 26,338 80,048 3.11 4.21 19,347 -1,423 62,124 80,048 Portfolio Performance (%) 187 City of Clearwater Employees Pension Fund Real Estate Comp as of 3/31/13 Cash & Equiv $875 1.09% Domestic Equity $44,523 55.62% Real Estate $34,650 43.29% Periods from 4/08 to 3/13 Alpha Beta R-Squared -0.23 0.99 0.99 Annualized Return% -5.00.05.010.015.020.025.030.035.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 R 1 T Annualized Standard Deviation% R Real Estate Comp 1 Policy Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 3.11 4.21 0.33 32.53 32.81 0.18 0.09 0.12 0.00 -0.33 Asset Allocation ($000) Risk/Return Analysis 188 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low R Real Estate Comp Net Ret Rank 1 Policy Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years 8.14 5.25 2.89 1.82 -2.09 4.35 36 5.85 18 20.32 14.20 10.93 6.04 -4.48 8.32 67 12.85 35 17.43 13.49 11.13 7.80 -3.38 9.50 66 13.54 23 19.91 16.32 13.06 7.12 -3.22 14.19 40 15.61 29 17.65 6.45 4.06 -1.27 -12.32 34.23 1 35.07 1 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% R 1 R 1 R 1 R 1 R 1 189 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low R Real Estate Comp Net Ret Rank 1 Policy Index Net Ret Rank 3/31/13 YTD2012201120102009 8.14 5.25 2.89 1.82 -2.09 4.35 36 5.85 18 30.19 17.60 11.49 5.97 -5.75 11.28 52 15.41 33 28.99 16.67 11.80 2.69 -16.47 8.85 59 11.62 50 30.76 18.42 13.91 2.50 -26.08 30.51 5 24.96 12 37.36 -4.71 -28.27 -32.49 -61.97 24.68 13 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% R 1 R 1 R 1 R 1R 1 190 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.65 0.00 0.27 4.35 8.32 8.32 3.58 0.77 -0.34 0.97 2.29 10.72 0.90 -4.60 0 4 0.84 5.85 12.85 12.85 4.18 3.04 2 10 0.89 0.87 0.25 -8.90 13.08 6.21 31.82 11.57 0.96 -0.16 0.96 1.22 14.73 2.52 -0.53 2 10 -8.94 11.30 7.43 30.56 11.81 1.31 4 15 0.37 -37.93 33.98 -45.85 118.01 4 15 -40.40 35.93 -45.65 115.40 4 15 0.95 0.99 0.37 -37.93 33.98 -45.85 118.01 35.34 0.99 -0.23 0.99 0.16 5.62 3.19 -0.33 4 15 -40.40 35.93 -45.65 115.40 35.41 0.19 191 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 3/31/13 Annualized Rate of Return 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 R 1 MedianRisk Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Real Estate Comp 1 Policy Index Median 14.194011.5760 15.612911.8161 13.067.92 192 City of Clearwater Employees Pension Fund Security Capital as of 3/31/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Security CapitalWilshire RESI Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Security Capital Wilshire RESI Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 6.67 7.41 42,557 0 2,839 45,395 6.67 7.41 42,557 0 2,839 45,395 11.83 13.82 46,514 -6,001 4,882 45,395 16.32 17.08 55,133 -30,811 21,073 45,395 4.28 4.97 19,347 -30,811 56,859 45,395 Portfolio Performance (%) 193 City of Clearwater Employees Pension Fund Security Capital as of 3/31/13 Cash & Equiv $872 1.92% Domestic Equity $44,523 98.08% Periods from 4/08 to 3/13 Alpha Beta R-Squared -0.14 0.99 0.99 Annualized Return% -5.00.05.010.015.020.025.030.035.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 s 1 T Annualized Standard Deviation% s Security Capital 1 Wilshire RESI T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 4.28 4.97 0.33 33.82 34.11 0.18 0.12 0.14 0.00 -0.24 Asset Allocation ($000) Risk/Return Analysis 194 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years 8.14 5.25 2.89 1.82 -2.09 6.67 14 7.41 10 20.32 14.20 10.93 6.04 -4.48 11.83 42 13.82 27 17.43 13.49 11.13 7.80 -3.38 11.52 46 13.38 25 19.91 16.32 13.06 7.12 -3.22 16.32 25 17.08 14 17.65 6.45 4.06 -1.27 -12.32 36.10 1 36.35 1 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% s 1 s 1 s 1 s 1 s 1 195 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank 3/31/13 YTD2012201120102009 8.14 5.25 2.89 1.82 -2.09 6.67 14 7.41 10 30.19 17.60 11.49 5.97 -5.75 16.22 29 17.55 25 28.99 16.67 11.80 2.69 -16.47 6.86 66 8.56 61 30.76 18.42 13.91 2.50 -26.08 31.62 4 29.12 7 37.36 -4.71 -28.27 -32.49 -61.97 24.68 13 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% s 1 s 1 s 1 s 1 s 1 196 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 5 Years Ending 3/31/13 Annualized Rate of Return 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.0 40.0 -25.0 -20.5 -16.0 -11.5 -7.0 -2.5 2.0 6.5 11.0 15.5 20.0 1 MedianRisk Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank 1 Wilshire RESI Median 6.14335.8292 -1.9115.36 197 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 3/31/13 Risk Measures 1 Year PortfolioBench 3 Years PortfolioBench 5 Years PortfolioBench Inception PortfolioBench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.88 3.26 0.00 -0.37 6.67 11.83 11.83 5.85 0.92 -0.18 1.00 2.00 12.79 0.40 -4.53 1 3 -0.11 7.41 13.82 13.82 6.24 2.19 3 9 0.95 0.95 0.08 -15.51 14.90 0.35 34.30 16.24 0.98 -0.08 0.99 1.00 16.57 1.31 -0.55 3 9 -15.08 15.40 1.76 35.69 16.54 1.03 5 14 0.26 -37.93 33.98 -45.85 118.01 6 14 -40.40 35.93 -61.03 115.40 5 14 0.97 1.00 0.26 -37.93 33.98 -45.85 118.01 36.47 0.99 -0.14 0.99 0.19 6.87 2.70 -0.24 5 14 -40.40 35.93 -45.65 115.40 36.57 0.20 198 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 3/31/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Multi Employer Property TrustNCREIF ODCE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Multi Employer Property Trust NCREIF ODCE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.00 2.68 24,778 0 496 25,274 2.00 2.68 24,778 0 496 25,274 5.10 10.79 24,048 0 1,226 25,274 9.81 13.99 0 20,000 5,274 25,274 Portfolio Performance (%) 199 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 3/31/13 Cash & Equiv $2 0.01% Real Estate $25,272 99.99% Periods from 9/10 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -0.50.00.51.01.52.02.53.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 M 1 T Annualized Standard Deviation% M Multi Employer Property 1 NCREIF ODCE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.81 13.99 0.11 2.74 1.83 0.03 3.55 7.57 0.00 -2.68 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 200 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank O NCREIF ODCE Fund Index Net Ret Rank Last Qtr Last Year Last 2 Years 8.14 5.25 2.89 1.82 -2.09 2.00 72 2.68 54 20.32 14.20 10.93 6.04 -4.48 5.10 79 10.79 51 17.43 13.49 11.13 7.80 -3.38 8.15 73 12.71 34 -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% M O M O M O 201 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank O NCREIF ODCE Fund Index Net Ret Rank 3/31/13 YTD20122011 8.14 5.25 2.89 1.82 -2.09 2.00 72 2.68 54 30.19 17.60 11.49 5.97 -5.75 4.70 80 10.94 55 28.99 16.67 11.80 2.69 -16.47 12.99 44 15.99 26 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M O M O M O 202 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 3/31/13 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands GroupNCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands Group NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 1.53 6,205 0 0 6,205 0.00 1.53 6,205 0 0 6,205 1.14 9.01 2,864 3,259 82 6,205 -0.73 5.36 111 6,067 26 6,205 Portfolio Performance (%) 203 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 3/31/13 Real Estate $6,205 100.00% Periods from 6/11 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -0.50.00.51.01.52.02.53.03.54.04.55.0 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 M 1 T Annualized Standard Deviation% M Molpus Woodlands Group 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.73 5.36 0.08 1.76 4.56 0.03 -0.46 1.16 0.00 -1.36 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 204 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs Last 4 Qtrs 8.14 5.25 2.89 1.82 -2.09 0.00 88 1.53 79 13.06 9.77 5.39 2.81 -2.07 -0.15 90 7.54 38 18.28 10.72 7.99 4.56 -3.87 1.47 87 8.35 45 20.32 14.20 10.93 6.04 -4.48 1.14 90 9.01 63 -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% M 1 M 1 M 1 M 1 205 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 3/31/13 YTD2012 8.14 5.25 2.89 1.82 -2.09 0.00 88 1.53 79 30.19 17.60 11.49 5.97 -5.75 0.77 89 7.75 70 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M 1 M 1 206 City of Clearwater Employees Pension Fund Hancock as of 3/31/13 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 HancockNCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 Hancock NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 1.53 3,173 0 0 3,173 0.00 1.53 3,173 0 0 3,173 -1.10 9.01 1,263 1,946 -35 3,173 Portfolio Performance (%) 207 City of Clearwater Employees Pension Fund Hancock as of 3/31/13 Real Estate $3,173 100.00% Periods from 6/12 to 3/13 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -0.50.00.51.01.52.02.53.03.54.04.55.05.56.06.57.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 H 1 T Annualized Standard Deviation% H Hancock 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -1.10 9.01 0.10 0.80 6.38 0.02 -1.51 1.40 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 208 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/13 High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs 8.14 5.25 2.89 1.82 -2.09 0.00 88 1.53 79 13.06 9.77 5.39 2.81 -2.07 -0.57 91 7.54 38 18.28 10.72 7.99 4.56 -3.87 -1.09 93 8.35 45 -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% H 1 H 1 H 1 209 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 3/31/13 YTD 8.14 5.25 2.89 1.82 -2.09 0.00 88 1.53 79 -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% H 1 210 Dow Jones Industrial Average: This index is comprised of 30 "blue-chip" US stocks selected for their history of successful growth and wide interest among investors. The DJIA represents about 20% of the total market value of all US stocks and about 25% of the NYSE market capitalization. It is a price-weighted arithmetic average, with the divisor adjusted to reflect stock splits and the occasional stock switches in the index. NASDAQ Composite: A cap-weighted index comprised of all common stocks listed on the NASDAQ Stock Market (National Association of Securities Dealers Automated Quote system). S&P 500: A broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. This index does not contain the 500 largest companies or the most expensive stocks traded in the US. While many of the stocks are among the largest, this index also includes many relatively small companies. This index consists of approximately 380 industrial, 40 utility, 10 transportation, and 70 financial companies listed on the US market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding), calculated on a total return basis with dividend reinvested. Russell 1000: The 1000 largest companies in the Russell 3000 index, based on market capitalization. Russell 1000 Growth: A segment of the Russell 1000 with a greater-than-average growth orientation. Companies in this index have higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 1000 Growth index. Russell 1000 Value: Represents a segment of the Russell 1000 with a less-than-average growth orientation. Companies in this index have low price-to book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 1000 Growth index. Russell Mid-Cap: This index consists of the bottom 800 securities in the Russell 1000 as ranked by total market capitalization, and represents over 35% of the Russell 1000 total market cap. Russell Mid-Cap Growth: The Russell Mid-cap Growth Index offers investors access to the mid-cap growth segment of the U.S. equity universe. The Russell Midcap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate mid-cap growth manager's opportunity set. Russell Mid-Cap Value: Measures the performance of the Russell 3000 Index extended to include micro-cap securities of the Russell Micro-cap Index. The index represents approximately 99% of the U.S. Equity Market. As of the latest reconstitution, the average market capitalization was approximately $3.8 billion; the median market capitalization was approximately $612 million. The index had a total market capitalization range of approximately $368.5 billion to $67.3 million. Russell 2000: the 2000 smallest companies in the Russell 3000 index. Russell 2000 Growth: A segment of the Russell 2000 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2000 Value index. City of Clearwater Employees Pension Fund Appendix 211 Russell 2000 Value: A segment of the Russell 2000 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2000 Growth index. Russell 2500: This index consists of the bottom 500 stocks in the Russell 1000 (as ranked by market capitalization) and all of the stocks in the Russell 2000. This index is intended to be used as a measure of small to medium/small stock performance. Russell 2500 Growth: A segment of the Russell 2500 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2500 Value index. Russell 2500 Value: A segment of the Russell 2500 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2500 Growth index. Russell 3000: is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. Russell 3000 Growth: This index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. Russell 3000 Value: This index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000Value or the Russell 2000 Value indexes. MSCI EAFE: A market capitalization-weighted index representing all of the MSCI developed markets outside North America. It comprises 20 of the 22 countries in the MSCI World. These 20 countries include the 14 European countries in the MSCI Europe and the 6 Pacific countries in the MSCI Pacific. This index is created by aggregating the 20 different country indexes, all of which are created separately. MSCI World: A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. MSCI World ex U.S.: The MSCI World index excluding the U.S. portion of the index. MSCI All Country World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of January 2009 the MSCI ACWI consisted of 46 country indices comprising 23 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, City of Clearwater Employees Pension Fund Appendix 212 MSCI All Country World Index ex U.S.: The MSCI All Country World Index excluding the U.S. portion of the index. MSCI Emerging Markets Free (EMF): A market capitalization-weighted index representing 2 of the emerging markets in the world. Several factors are used to designate whether a country is considered to be emerging vs. developed, the most common of which is Gross Domestic Product Per Capita. The "Free" aspect indicates that this index includes only securities that are allowed to be purchased by global investors. This index is created by aggregating the 26 different country indexes, all of which are created separately. Barclays Capital U.S. Aggregate Bond: This index is made up of the Barclays Capital U.S. Government/Credit, the Mortgage-Backed Securities, and the Asset-Backed Securities indices. All issues in the index are rated investment grade or higher, have at least on year maturity, and have an outstanding par value of at least $100 million. Barclays Capital U.S. Government/Credit: This index includes all bonds that are in the Barclays Capital U.S. Government Bond and the Barclays Capital U.S. Credit Bond indices. Barclays Capital U.S. Government/Credit Intermediate: All bonds by the Barclays Capital U.S. Government/Credit Bond index with maturities of 1 to 10 years. Barclays Capital Municipal Bond: This market capitalization-weighted index includes investment grade tax-exempt bonds and is classified into four main sectors General Obligation, Revenue, Insured, and Pre-refunded. To be included in this index, the original transaction size of a bond must have been greater than $50 million. Barclays Capital U.S. Treasury Index: This index includes public obligations of the U.S. Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index. In addition, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS, are excluded. STRIPS are excluded from the index because their inclusion would result in double-counting. Securities in the Index roll up to the U.S. Aggregate, U.S. Universal and Global Aggregate Indices. Barclays Capital U.S. TIPS: This index measures the performance of U.S. Treasury Inflation Protection Securities. Merrill Lynch Convertibles: The convertible securities used in this index span all corporate sectors and must have a par amount outstanding of $25 million or more. The maturity must be at least on year. The coupon range must be equal to or greater than zero and all equity of bonds are included. Excluded from this index are preferred equity redemption stocks. When the component bonds of this index convert into common stock, the converted securities are dropped from the index. Merrill Lynch Corp/Govt 1-3 Years A or Better: An unmanaged index of government and corporate fixed-rate debt issues with maturities between one and 3 years. Merrill Lynch High Yield Master: Market capitalization weighted index providing a broad-based measure of bonds in the US domestic bond market rated below investment grade, but not in default. Includes only issues with a credit rating of BB1 or below as rated by Moody's and/or S&P, at least $100 million in face value outstanding and a remaining term to final maturity equal to or greater than one year. Dow Wilshire REIT: A measurement of equity REITs and Real Estate operating Companies. No special-purpose or health care REITs are included. It is a market capitalization weighted index for which returns are calculated monthly City of Clearwater Employees Pension Fund Appendix 213 Alpha: A risk-adjusted measure of 'excess return' on an investment. That is, it measures an active manager's performance in excess of a benchmark index or 'risk-free' investment. An alpha of 1.0 means the manager outperformed the market 1.0%. A positive alpha is the extra return awarded to the investor for taking additional risk rather than accepting the market return. Batting Average: The percent of periods the manager has beaten the benchmark. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Beta: A measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager's return series to match that of the benchmark used to measure beta. Down Market Capture Ratio: A measure of a manager's performance in down markets. A down-market is defined as those periods (months or quarters) in which market return is less than 0. It tells you what percentage of the down-market was captured by the manager. Information Ratio: The Information Ratio measures the consistency with which a manager beats a benchmark. R-squared: The R-Squared (R2) of a manager versus a benchmark is a measure of how closely related the variance of the manager returns and the variance of the benchmark returns are. Sharpe Ratio: The Sharpe Ratio is a risk-adjusted measure of return which uses standard deviation to represent risk. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. Standard Deviation: Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. A large standard deviation implies that there have been large swings in the return series of the manager. Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Treynor Ratio: The Treynor Ratio is a risk-adjusted measure of return which uses beta to represent risk. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the portfolio's beta value. Up Market Capture Ratio: A measure of a manager's performance in up markets. An up-market is defined as those periods (months or quarters) in which market return is greater than 0. It tells you what percentage of the up-market was captured by the manager. City of Clearwater Employees Pension Fund Appendix 214 This material is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. Any opinions expressed are our current opinions only. Assumptions, opinions and estimates constitute CapTrust's judgment as of the date of this material and are subject to change without notice. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and it should not be relied upon as such. CapTrust accepts no liability for loss arising from the use of this material. Performance Comparison Page Information: Shaded Areas represent where the investment objective was achieved either by: 1)The investment return vs the index; 2)The investment return universe ranking (the lower the number the better the ranking) Manager performance begins on the last day of the inception month. Any investment results depicted represent historical net performance. Past performance is no guarantee of future performance. City of Clearwater Employees Pension Fund Appendix Disclaimer Page 215