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EMPLOYEES PENSION PLAN - PERFORMANCE REVIEW - THIRD QUARTER ! AC TE 4101" , r+ r TABLE OF CONTENTS Important Disclaimer Information 1 Capital Markets Review 2 Fund Overview 3 Performance Review Total Fund Domestic Equity 5 International Equity 6 Fixed Income 7 Real Estate Appendix 9 r .............. ......... ............ IMPORTANT DISCLAIMER INFORMATION This report has been created as a courtesy for the clients of CapTrust Advisors, LLC. 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, any 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 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 Advisor if you have any questions. Transactions requiring tax consideration should be reviewed carefully with your accountant or 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, LLC. Indices are unmanaged and you cannot invest directly in an index. For index definitions,please see the Capital Markets Review. 1 z Domestic Fixed Income Barclays Capital Interm Credit 1.01% -0.85% 0.09% 3.71% 7.70% 4.84% Barclays Capital Aggregate Bond 0.57% -1.89% -1.68% 2.86% 5.41% 4.59% Domestic Equity Dow Jones Industn*al Average 2.12% 17.64% 15.59% 14.94% 9.93% 7.74% Wilshire 5000 Total Market 6.84% 14.96% 17.54% 11.43% 8.37% 7.12% Russell Midcap Growth 9.34% 25.42% 27.54% 17.65% 13.92% 10.16% Russell Midcap Value 5.89% 22.94% 27.77% 17.27% 11.86% 10.91% Russell 2000 Growth - Small Cap 12.80% 32.47% 33.07% 19.96% 13.17% 9.85% International Equity Blended Benchmarks This andlor the accompanying information was prepared by or obtainedftom sources which JVells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion ofthis report. Pastperformance is not indicative offilture results. Data Sources:Morningstar Dataprovided by sources believed to be reliable but no guarantee is made as to its accuracy.Pastperformance is no guarantee offuture performance. 3 Capital Markets Overview Speculation the Fed would initiate tapering activities along with political battles which threatened to stall government funding, and therefore shut down the U.S. government, didn't seem to effect performance this quarter. The major markets, led this time by the NASDAQ, added to their yearly gains and ended near record territory. Fueled by comments from Fed Chairman Bernanke that supported an accommodative monetary policy the equity markets were positioned to set new records this quarter. The Dow Jones Industrial Average (DJIA) and S&P 500 traded near or above record levels by mid-July. Despite a volatile final week the major averages all managed to finish in positive territory. The NASDAQ Composite added more than 11% to its total return and is up more than 26% year-to-date. The S&P 500 Index added 5% for the quarter and is up more than 19% year-to-date. The DJIA added 2%, increasing its total return to more than 17%year-to-date. International markets, specifically in Europe, watched the U.S. markets for guidance as foreign investors weighed the impact of a stalled funding program and the possible untimely failure of the U.S. to pass a measure increasing the debt ceiling limit. GDP data released in early September confirmed that Europe is exiting its second recession since the beginning of 2008. China's economy, a source of concern for investors earlier this year, showed signs of stabilizing this quarter. Industrial production and exports are up and retail sales are rebounding. The debt market was outperformed by equities again this quarter as bond yields moved with every Fed committee member's taper announcement. Long-term rates ended the quarter lower after the Fed's official announcement in September that it would not begin its anticipated tapering program. This may have been a pre-emptive move by the Fed anticipating a government shutdown which would likely lead to increased short-term unemployment. The 10-year note was up slightly this quarter to yield 2.61%, and the 30-year note also closed up to yield 3.68%. Away from government notes, Verizon Communications Inc. issued the largest corporate debt offering in history at $49 billion. According to data provider Dealogic, investment-grade companies sold $147.7 billion of corporate bonds in the U.S. during September. Commodity prices, in general, declined as slow growth around the world reduced demand. The availability of raw materials for industrial production is abundant in the market and agricultural output is at record highs. Gold enjoyed a brief muted rally as a safe haven investment for investors concerned about a possible fiscal impasse in the U.S. This and/or the accompanying information was prepared by or obtained from sources which Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Source: Wells Fargo Advisors,Zephyr StyleAdvisor,Barclay's Capital,MSCI Barra,Standard&Poor's Data provided by sources believed to be reliable but no,guarantee is made as to its accuracy.Past performance is no,guarantee of future performance. 4 Domestic markets continued to move near all-time highs after another solid quarter ➢ Stocks roared into the second half of the year as July saw most averages up over 5% ➢ Performance for the quarter was strongest in growth and smaller-cap stocks ➢ All segmentations of the major Russell indices are now up over 20% for the year Third Quarter 2013 Year-To-Date Domestic Equity Returns Domestic Equity Returns Value Growth Value Growth rf�rP r rlr Y� /r'r jf�J�rU. t1y x7it'ntJ1 N O N O un O un O UO 0 3.9 6.0 8.1 UO o �Y1 � � VU] U (� N � �2L,PSf�r'~~�ss'si�t��%1✓i�;1�'�`��t�zr�s��J'��P sr�y�3tFst's r7z{7s'�uff��$�`��I/r7'a� V] '� 5.9 7.7 9.3 V] V] "2 `'.a�3ctr tz z'`�„rs�✓s;.�'7 s`r;r�,y.�1~rs��.'�`�s z'ziPZr„�z�s'2f,P:irk` sy"f�v Fd?�{�'r�.z r��P�F Jog 7.6 „sii, `�si.�F�.'r��rFf P�rl.4,�yl r�,lk zr7 3:'��=,,.:1>r, N,,VV�/]] O Q�N ust?>Vi�Pn`r.rr,�7i.t Y,�fjt'Z:,;^,S.r.`f,zrof{?f:�a3��1 Js l�P P�s��S.Ph r�2u,�3l3,2'��'✓t°�l�rn,�'��S�c A�c��r U��n a t'"�S€r?z�?�rf�o„r��%#.�1 rT.s>"y��>,r>l3{f�,��F�P rr z�r r lG 3''jf F.l r�✓r%�<'y1 t�P��23,'r�P,n r ar�»r�,','�7 u��;�s��nrlj�'�.,s n l Pz�Y3;z'P)r'c��,tz°�rt�3 r 3^�s2l��rT f�.r;r��ztr-r,�rf'�t'�P�r Z��{:<,'y}r�?a��ir��f s`I v��Py(,L/,I�tm sr>}r t�I�.c»�r l�?�sr'-tFyrri��UI�t 33 mr aF:i,rf Pir$�r�r-eF'fr`z r't�.{rrr�,t�'1 sPz iz zf✓��l�v�,svr1��f.�t��t r�F t��'��.r�,�zF r P;a st�f2./�'iz'i��c yss�i r 3��.�r L1r P�P�(rr`��'y2�l�r.3 ra��'f.,�'~z{�F 3,=/F�r'€'{S zy!�'3 3,7v�r�a<�sJ r 3'ka��r'r� .P r5 -10 -5 0 5 10 -10 -5 0 5 10 Most sectors of the S&P 500 continued to post solid gains this quarter ➢ Cyclicals led for the quarter as strength in metals helped Materials become the best performing sector ➢ The Telecommunications sector was the lone negative sector for the quarter as the price of AT&T (T) stock fell 4.190,o and shares in Verizon (VZ)fell 7.330,o S&P 500Third Quarter � Materials ti ,r3 Jrt JT£Frfii,z&s r cs{cst,.tirc st \cc< C$z,ir rss n nl ii lln zF nSnlz ,sc ti c Sz i s.s d��#�� S&P 500 Tires &Rubber 46.83% `� S&P 500 Computer&Electronics Retail 30.10% 7.79 Consumer Discretionary S&P 500 Household Appliances 28.67% 6.82 Health Care S&P 500 Consumer Electronics 24.66% 6.62 Informabon Technology S&P 500 Coal& Consumable Fuels 22.26% 5.24 sera sao 5.15 Energy S&P 500 Food Distributors -6.05% 2.87 F,nanoals S&P 500 Residential REITs -6.13% 0.80 Consumer Staples S&P 500 Homebuilding -7.77% S&P 500 Department Stores -8.32% 0.19 Utilities S&P 500 Health Care Facilities -10.65% -4.4 Telecom muni ca lions Tins ond'or the aecownpant ing irlormation 7ras prepared lw or obtamed frorn sonrees which Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Source: Wells Fargo Advisors,Zephyr StyleAdvisor,MSCI Barra,Standard&Poor's,FactSet Data provided by sources believed to be reliable but no,guarantee is made as to its accuracy.Past performance is no,guarantee of future performance. 5 Developed vs. Emerging...showing the difference ➢ The growth in the Eurozone was slow as anticipated, although it seems that the equity markets recognized the QE and work by the EU was continuing and the markets caught up. Europe (ex-U.K.) saw a gain of over 14% for the quarter and the YTD return jumped from -1% to 19%. ➢ Its seems that "Abenomics" has worked in the short-term, jolting the markets to a gain of over 6% this quarter and taking the YTD return over 24%. The threat to Japan comes as other tactics are implemented over the next year. Return on Equity - Last 12-month Average 1s 16.9 45.9 1610 14% �3, ��as 10% s.6 .7 6. 6° #.7 2% La LL 2C,t13 YTD Country/Region Local USD Local USD Regions/Broad Indexes USA''(S&P 500) - 5.2 19.8 EAFE 7.5 11.6 19.8 16.6 Europe ex-U.K. 9.8 14.5 16.6 19.0 Pacific ex-Japan 8.7 10.4 12.9 5.3 Emerging Markets 5.8 5.9 ' 0.8 -4.1 MSCI:Selected Countries United Kingdom 4.9 12.1 12.8 12.4 France 10.9 15.5 17.1 20.3 Germany 8.3 12.7 13.8 16.9 Japan 5.4 6.7 41.3 24.5 China 12.2 12.2 0.2 0.1' India -0.2 -5.3 -0.4 -12.8 Brazil 9.3 8.4 -3.1 -10.91 Russia 12.5 13.7 5.9 1.0 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Sources: Wells Fargo Advisors,JPMorgan Asset Mgmt.,MSCI Data provided by sources believed to be reliable but no,guarantee is made as to its accuracy.Past performance is no,guarantee of future performance. 6 Emerging Markets need to look within their own borders China's economy slowed somewhat in the 3rd quarter, however the markets rose based on the results of the "shadow banking" crackdown and monetary infusion. The MSCI China index was up over 12% for the quarter making its YTD over 12% as well. The Emerging Markets are still trailing price to earnings while the Developed Markets are beginning to revert to the mean. Developed Markets continue to strengthen, causing a lessening of foreign investment; Emerging Markets are going to have to strengthen their domestic consumption to continue their growth. io Cyclically Adjusted Price to Earnings (CAPE) Ratio 20 14,8 Italy Spain China Brazil Europe ex Indonesia Canada UK Australia U.S. UK Exports as a % of GDP Latest 12 months,goods exported Germany Italy France Japan Eurozone Russia China India This andlor the accompanying information was prepared by or obtainedftom sources which JVells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion of this report. Pastperformance is not indicative offilture results. Data provided by sources believed to be reliable but no guarantee is made as to its accuracy.Past performance is no guarantee offuture performance. 7 Fed Comments Cause for Concern in Bond Markets ➢ The 10-year note continued its selloff driven by concerns that the Fed would soon slow its bond buying program. The yield climbed as high as 2.99% before the Fed announced that it would not adjust the level of its bond purchases. ➢ After the Fed's taper announcement the yield retreated from its annual high, down to 2.61%. 10 year treasury yield 3.2 3 2.$ _. 2.6 --- . 2.4 2.2 - 2 1,6 1.4 - Bonds make slight gains across credit quality 15.00`Ya io AAA and sectors r E 10.00% s AA O 0 A ➢ Fixed income markets halted their decline this 5°0�%° quarter. Gains ranged from 0.77% for the lowest 0.00% ��— investment grade debt (BBB) to 0.43% for AAA -5DO% . paper. Year-to-date returns for BBB rated bonds 3Q13 YTD 1 YR 3 YR 5 YR rose to -3.36% from -4.10%, while AAA rated bonds are down 1.18%. 10-00% _ E 0 5.00% - ➢ By sector, high yield had the largest gain this quarter, up 2.28%, followed by mortgage paper, up 0.O°� � 1.02%. Government debt gained 0.12% and 5 00% p 3Q13 YTD 1 YR 3 YR 5 YR 1.O YR corporate debt gained 0.82%. a Govts rCorps a martgages wHiSh Yield ➢ Yields moved higher this quarter based on 5.00% - - - - - - 4,00% improving economic sentiment and fear the Fed 3.00% would curtail its bond buying program. 2.00°4 1.00% _._. 0.00% 3 MO 6 MO 2 YR 5 YR 10 YR 30 YR 2Ja1/za10 12131/2011 —.-12/31/2012 513012013 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Sources:FactSet,Federal Reserve,Bloomberg LP, Wells Fargo Advisors, Zephyr StyleAdvisor,Barclays Data provided by sources believed to be reliable but no,guarantee is made as to its accuracy.Past performance is no,guarantee of future performance. 8 Commodity prices remain under pressure Continued slow economic growth around the world has kept downward pressure on commodity Gold prices were volatile this quarter largely due to political uncertainty in the Middle-East and funding uncertainty in the United States. Gold's lack of ability to sustain a rally may indicate the precious metal has lost some value as a necessary safe haven investment. The price of gold, measured per Troy ounce, is down nearly 25% from a year ago. Crude oil is moving opposite of the trend in general commodity prices. Crude, priced per barrel is up 11.58% through the third quarter this year due largely to the current turmoil in the middle east. DJ LIBS Commodity Index r'4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r'4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 r4 Commodities Current 3 Months Ago 1 Year Ago 9/30/2013 6/28/2013 9/28/2012 Gold (per Troy ounce) $1,332.90 $1,223-80 $1,771.10 This andlor the accompanying information 4,as prepared by or obtainedftom sources which JVells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion ofthis report. Pastperformance is not indicative offilture results. Source:Bloomberg LP,FactSet,and JVells Fargo Advisors, Data t2ro ided bv sources believed to be reliable LLLaa,2��made as to its accuL22,,��=e. 9 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Russell N RussellBEST 1090 1000value value 3$3 Sala 35.181a 4 . Russell P P zii 0 1000 P a m F:; � � .� � ;.�a. value ,�., 3. 0. 2R 3 � P' 17 5lalo'' Russell' Russell 1000 Jill ':1000 E110 value Value 7,050% •36 851x �'" Russell Russell Russell Russell Russell Russell Russell s s Russell 8 :.,: PPP 1000 1600 P 9 P 1000 1000 1000 1400 m 1000 PPP 1000 X44 544 x,54$ value ' value value value value :"� value'. •, value a "P h °x value : m 2164%: 15,63"fn'„��` 701oJo �S9°10 -15;52°✓u P t", 16. 900 2125°lu: �� A '; ��,� s `; 20.47°l0' " Russell Russell . 104 Russell R. ,A 0 1400 PPP 1000 1000 5411 SQL„" t14 .` 544 X44 5444 " 544 V.I., value value value 7.3Wo ..,9,74 v; 30.03°!0 ':R1°n'..•.,(591In;.”„ 4 ,;; . F,,2 °1 LS.51a/a 0.39°!0 Russell ! u O ? $mss 4 ; , a44 0 1000 joo� Value 17%Russll '. MEIN-1991 -0 Russell 000 illion value 19,69% WORST r.1. . *a. .. . 0 Russell 1000 Value contains those Russell 1000(larger capitalization)securities with a less-than-average growth orientation. Securities in this index generally have lower price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth rates. Russell 1000 Growth contains those Russell 1000 (larger capitalization) securities with a greater-than-average growth orientation. Securities in this index generally have higher price-to-book and price-to-earnings ratios, lower dividend yields, and higher forecasted growth rates. Russell 2000 Value contains those Russell 2000 (smaller capitalization) securities with a less-than-average growth orientation. Securities in this index generally have lower price-to-book and price-to-eamings ratios than those in the Russell 2000 Growth Index. Russell 2000 Growth contains those Russell 2000 (smaller capitalization) securities with a greater-than-average growth orientation. Securities in this index generally have higher price-to-book and price-to-earnings ratios than those in the Russell 2000 Value Index. MSCI EAFE is the Morgan Stanley Capital International Europe, Australia, Far East Index designed to measure the performance of developed stock markets in these areas. _ Barclays Agg Bond is the Lehman Brothers Aggregate Bond Index. This index includes U.S. government, corporate and mortgage-backed securities rated investment grade or higher with maturities up to 30 years. ra x S&P 500 is a representative sample of 500 leading companies in leading industries of the U.S.economy. DJ Wilshire REIT is intended as a broad measure of the performance of publicly traded real estate equity. The index is comprised of companies whose charter is the equity ownership and operation of commercial real estate. 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Sources:Morningstar Data provided by sources believed to be reliable but no,guarantee is made as to its accuracy.Past performance is no,guarantee of future performance. 10 ' i 20 i i i 0 -L0 -40 Domestic Equity vs.Fixed Income Mean 1 Standard Deviation ————-2 Standard Deviations 40 i i 0 OV' -40 f -60 Domestic Equity vs.Foreign Equity Mean 1 Standard Deviation 2 Standard Deviations This and/or the accompanying information was prepared by or obtained from sources which Wells Fargo Advisors believes to be reliable bat does not guarantee its acczracy. Please see important disclosure and reference information at the conchision of this report. Past performance is not indicative of fntare reszrlts. Data Sources:Morningstar Data provided by sources believed to be reliable but no guarantee is made as to its accuracy.Past performance is no guarantee of futare performance. 11 Large Cap vs.Small Cap Mean 1 Standard Deviation ————-2 Standard Deviations Large Value vs.Large Growth Mean 1 Standard Deviation 2 Standard Deviations This andlor the accompanying information 4,as prepared by or obtainedftom sonrces 4,hich JVells Fargo Advisors believes to be reliable bat does not gnarantee its accilracy. Please see important disclosare and reference information at the concInsion of this report. Pastperformance is not indicative offiltare resnIts. Data Sonrces:Morningstar Dataprovided by sonrces believed to be reliable bat no gnarantee is made as to its accnracy.Pastperformance is no gnarantee offittare performance. 12 Small Value vs.Small Growdi Mean 1 Standard Deviation ————-2 Standard Devi Domestic Equity vs.REIT Mean 1 Standard Deviation ————-2 Standard Deviations This andlor the accompanying information was prepared by or obtainedftom sonrces which JVells Fargo Advisors believes to be reliable bat does not gnarantee its accilracy. Please see important disclosare and reference information at the conchision of this report. Pastperformance is not indicative offiltare resnIts. Data Sonrces:Morningstar Dataprovided by sonrces believed to be reliable bat no gnarantee is made as to its accnracy.Pastperformance is no gnarantee offittare performance. 13 120 100 80 60 40 20 0 -20 -40 -60 raga -80 -100 -120 Fixed Income vs.REIT Mean 1 Standard Deviation ————-2 Standard Deviations 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. Data Sources:Morningstar Data provided by sources believed to be reliable but no guarantee is made as to its accuracy.Past performance is no guarantee of future performance. 14 FIRM: Wells Fargo Advisors is the trade name used by two separate, registered broker/dealers and nonbank affiliates of Wells Fargo & Company, providing certain retail securities brokerage services: Wells Fargo Advisors, LLC., member FINRA, SIPC, and Wells Fargo Financial Network, LLC,member FINRA, SIPC. Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. CONFLICTS OF INTEREST: To review important information about certain relationships and potential conflicts of interest that may exist between Wells Fargo Advisors , its affiliates, and the companies that are mentioned in this report, please visit the our research disclosure page at or call your Financial Advisor. STATEMENT OF OPINION: 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. Any opinions expressed or implied herein are not necessarily the same as those of Wells Fargo Advisors or its affiliates and are subject to change without notice. The report herein is not a complete analysis of every material fact in respect to any company, industry or security. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request. ASSET CLASS SUITABILITY: Stocks of small companies are typically more volatile than stocks of larger companies. They often involve higher risks because they may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. High-yield,non-investment grade bonds are only suitable for aggressive investors willing to take greater risks, which could result in loss of principal and interest payments. Global/International investing involves risks not typically associated with US investing, including currency fluctuations,political instability,uncertain economic conditions and different accounting standards. PAST PERFORMANCE: Past performance is not an indication of future results. ASSET CLASS PERFORMANCE REPRESENTATIONS: Long Tenn Treasuries = BC Treasury Long; Municipals = BC Municipal; Foreign Bonds = Salomon World BIG—113; US Govt/Credit=BC Govt/Credit; Mtge Backed Securities = ML Mortgage Master; Corporate Bonds = Salomon Corporate; 90 Day T-Bills = Salomon; Japanese Stocks = Salomon Japan BMI; High Yield Bonds = ML High Yield Master; Small Cap US Value = RU 2000 Value; MidCap US Stocks = RU Midcap; Large Cap US Value = RU 1000 Value; European Stocks = Salomon Europe BMI; Small Cap US Stocks = RU 2000; Lg Cap US Growth = RU 1000 Growth; Latin American Stocks = Salomon Latin America BMI; Sm Cap US Growth=RU 2000 Growth BROAD EQUITY MARKET & SECTOR PERFORMANCE REPRESENTATIONS: Large-Cap = S&P 500 or Russell 1000; Mid-Cap=RU Midcap; Small-Cap=RU 2000; International=MSCI EAFE DATA SOURCES: Information found in this document was derived from the following sources: Zephyr Associates StyleAdvisor,Informa M-Watch, Investor Force, Barclays Capital,MSCI Barra, Standard&Poor's,and Morningstar. 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. 15 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 that are listed on the NASDAQ Stock Market(National Association of Securities Dealers Automated Quotation 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 nor the most expensive stocks traded in the U.S. 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 U.S. market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding), calculated on a total return basis with dividends reinvested. S&P 500/Citigroup Growth - The S&P/Citigroup Growth tracks the performance of those stocks in the S&P 500 with lower book-to-price ratios. A cap-weighted index, it is rebalanced semi-annually, based on its price-to-book ratios and market capitalizations at the close of trading one month prior. The index is adjusted each month to reflect changes in the S&P 500. This index is more heavily weighted in the consumer non-cyclical, health care, and technology sectors than the S&P 500. S&P 500/Citigroup Value - The S&P Citigroup/Value tracks the performance of those stocks in the S&P 500 with higher book-to-price ratios. A cap-weighted index, it is rebalanced semi-annually on January 1 and July 1, based on its book-to- price ratios and market capitalizations at the close of trading one month prior. The index is adjusted each month to reflect changes in the S&P 500. This index tends to be more heavily concentrated in the energy and financial sectors than the S&P 500. 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-earnings ratios,lower dividend yields and higher forecasted growth values than the Russell 1000 Value 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-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 1000 Growth Index. Russell Mid Cap - The index consisting of the bottom 800 securities in the Russell 1000 as ranked by total market capitalization, and it represents over 35% of the Russell 1000 total market cap. 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-earnings ratios,lower dividend yields and higher forecasted growth values than the Russell 2000 Value index. 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-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2000 Growth index. Russell 2500 - The index consisting 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, and it represents over 22% of the Russell 3000 total market cap. 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. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of future results. 16 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 if which are created separately. MSCI World - This market capitalization-weighted index represents all 22 of the MSCI developed markets in the world. It is created by aggregating the 22 different country indexes, all if which are created separately. MSCI Emerging Markets Free (EMF) - A market capitalization-weighted index representing 26 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 if which are created separately. Barclays Capital Govern m ent/Credit - This index includes all bonds that are in the Barclays Capital Government Bond and the Barclays Capital Credit Bond indices. Barclays Capital Government Intermediate - All bonds covered by the Barclays Capital Government Bond index with maturities of I and 10 years. Barclays Capital Aggregate Bond - This index is made up of the Barclays Capital 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 one year to maturity,and have an outstanding par value of at least$100 million. Barclays Capital Government Long Term - All bonds covered by the Barclays Capital Government Bond index with maturities of 10 years or greater. Barclays Capital Municipal Bond - This market cap 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. 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 one year. The coupon range must be equal to or greater than zero and all quality 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 High Yield Master - Market-cap 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 BB I 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 Jones Wilshire REIT Index - 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 using buy and hold methodology;it is rebalanced monthly. Citigroup 3 Month Treasury Bill - Representing the monthly return equivalents of yield averages that are not marked to market, this index is an average of the last three three-month Treasury bill issues. 50150 Blend (S&P 500/BCIGC) — A blended benchmark consisting of 50% S&P 500 and 50% Barclays Capital Government/Credit Intermediate indices. This andlor the accompanying information was prepared by or obtainedftom sources which JVells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion ofthis report. Pastperformance is not indicative offilture results. 17 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 9/30/13 Market Manager Value Actual% Policy% ING Investment Mgmt 115,189,292.17 14.48 NTGI-QM R1000V 40,456,351.54 5.09 Eagle Capital Management 38,695,713.75 4.86 Manning and Napier 36,814,683.41 4.63 Artisan Partners 48,448,562.25 6.09 Wedge Capital Mgmt 49,288,690.98 6.20 Atlanta Capital Mgmt 15,718,525.19 1.98 Systematic Financial Mgt 16,151,846.35 2.03 Riverbridge Partners 32,128,134.50 4.04 Total Domestic Equity 392,891,800.14 49.39 42.00 Earnest Partners 42,806,569.72 5.38 WHV 33,890,378.97 4.26 Eaton Vance Mgmt 37,403,194.98 4.70 Total International Equity 114,100,143.67 14.34 18.00 Dodge&Cox 114,071,061.23 14.34 Western Asset Management Co. 89,637,007.10 11.27 Security Lending Income Account 3,589.83 0.00 In House Account 4,648,569.13 0.58 Total Domestic Fixed Income 208,360,227.29 26.19 30.00 Multi Employer Property Trust 26,858,894.94 3.38 Security Capital 43,679,500.80 5.49 Molpus Woodlands Group 6,208,434.00 0.78 Hancock 3,376,582.00 0.42 Total Real Estate 80,123,411.74 10.07 10.00 Total Fund 795,475,582.84 100.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 6/30/13 - 9/30/13 MM mmmmmmmmmmmmmmmmm Beginning Net Invest Invest Ending Manager Name Value Contrib Fees Gain/Loss Value ING Investment Mgmt 106,383,231 -1,319 0 8,807,081 115,189,292 NTGI-QM R1000V 38,912,797 0 0 1,543,555 40,456,352 Eagle Capital Management 36,343,695 -306 0 2,352,325 38,695,714 Manning and Napier 35,407,584 -637 0 1,407,737 36,814,683 Artisan Partners 48,692,070 -8,000,521 0 7,757,114 48,448,562 Wedge Capital Mgmt 46,207,948 -734 0 3,081,476 49,288,691 Atlanta Capital Mgmt 14,257,529 -185 0 1,461,181 15,718,525 Systematic Financial Mgt 14,850,304 -115 0 1,301,657 16,151,846 Riverbridge Partners 28,407,393 -282 0 3,721,024 32,128,135 Equity 369,462,551 -8,003,899 0 31,433,148 392,891,800 Earnest Partners 38,678,474 -8,252 0 4,136,348 42,806,570 WHV 31,607,197 -878 0 2,284,060 33,890,379 Eaton Vance Mgmt 35,452,983 0 0 1,950,212 37,403,195 International EQ Comp 105,738,653 -9,129 0 8,370,620 114,100,144 Dodge&Cox 113,142,593 -1,241 0 929,709 114,071,061 Western Asset Management Co. 89,279,355 -606 0 363,738 89,637,007 Security Lending Income Account 49,401 -47,183 0 1,372 3,590 In House Account 4,591,192 57,377 0 0 4,648,569 Fixed Income Comp 207,062,541 2,867 0 1,294,819 208,360,227 Multi Employer Property Trust 25,942,096 0 0 916,798 26,858,895 Security Capital 45,132,067 -277 0 -1,452,289 43,679,501 Molpus Woodlands Group 6,699,890 -491,455 0 0 6,208,434 Hancock 3,376,582 0 0 0 3,376,582 Real Estate Comp 81,150,636 -491,73 0 -535,491 80,123,412 Total Fund 763,414,381 -8,501,894 0 40,563,095 795,475,583 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending September 30, 2013 Net of Fee Return Value Periods Ending 9/30/13 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Total Fund 795,476 5.34 13.61 10.83 10.71 6.88 7.91 6.73 9.35 12/31/87 Policylndex 3.73 10.51 10.12 8.67 5.79 8.10 7.17 9.46 12131187 Domestic Equity Comp 392,892 8.53 25.22 18.12 12.59 7.68 9.36 7.35 11.25 12/31/87 S&P 500 5.25 19.35 16.26 10.01 5.60 7.57 5.32 10.18 12131187 Large Cap Equity Comp 231,156 6.50 20.40 15.79 9.95 5.92 7.94 5.58 10.24 3/31/88 R1000 6.02 20.90 16.64 10.53 5.98 7.98 5.78 10.22 3131188 Eagle Capital Management 38,696 6.47 16.42 1/31/13 Russell 1000 Value 3.95 13.13 1131113 ING Investment Mgmt 115,189 8.28 17.79 17.58 11.70 8.26 9.39 6.97 11.49 12/31/87 RIOOOG 8.12 19.27 16.94 12.07 7.60 7.83 4.28 9.64 12131187 Manning and Napier 36,815 3.98 11.21 1/31/13 Russell 1000 Value 3.95 13.13 1131113 NTGI-QM R1000V 40,456 3.97 22.68 16.10 8.96 2.56 6/30/07 RIOOOV 3.95 22.33 16.25 8.87 2.49 6130107 Mid Cap Equity Comp 97,737 11.51 31.81 21.01 16.25 10.43 11.13 10.73 12.85 3/31/88 R Mid Cap 7.70 27.91 17.52 12.97 7.73 10.78 9.87 11.83 3131188 Artisan Partners 48,449 16.16 33.29 21.84 18.27 13.23 13.51 10.43 7/31/01 R Mid Cap G 9.34 27.55 17.65 13.92 8.34 10.16 7.43 7131101 Wedge Capital Mgmt 49,289 6.67 29.77 19.98 13.89 7.90 2/28/07 R Mid Cap V 5.89 27.76 17.26 11.86 5.33 2128107 Small Cap Equity Comp 63,999 11.27 33.21 22.21 14.98 8.97 10.92 10.44 8/31/03 R2000 10.21 30.05 18.28 11.15 7.23 9.64 9.35 8131103 Atlanta Capital Mgmt 15,719 10.25 31.87 22.31 16.28 12.86 13.57 13.06 8/31/03 Russell 2000 10.21 30.91 1774 9.79 5.81 9.62 9.41 8131103 Riverbridge Partners 32,128 13.10 34.86 23.94 23.94 9/30/10 R2000G 12.80 33.05 19.94 19.94 9130110 Systematic Financial Mgt 16,152 8.77 31.29 18.88 14.27 7.45 9.94 9.48 8/31/03 R2000V 7.60 2704 16.56 9.13 5.36 9.29 9.08 8131103 International EQ Comp 114,100 7.92 11.50 4.56 7.59 3.19 8.30 5.70 5/31/01 MSCI SAFE 11.61 24.29 8.97 6.85 2.89 8.49 5.78 5131101 Earnest Partners 42,807 10.70 18.81 8.30 10.55 3.75 4/30/08 MSCI SAFE 11.61 24.29 8.97 6.85 0.53 4130108 Eaton Vance Mgmt 37,403 5.50 4.09 0.54 6.99 0.12 4/30/08 MSCIEmgMkts 5.90 1.33 -0.00 7.56 -0.64 4130108 W11V 33,890 7.23 11.60 7.45 5.91 0.57 4/30/08 MSCI SAFE 11.61 24.29 8.97 6.85 0.53 4130108 Fixed Income Comp 208,360 0.64 -0,63 3.54 6.98 5.78 5.08 5.33 6.68 12/31/87 BCAgg 0.57 -1.68 2.86 5.41 5.12 4.59 5.27 6.94 12131187 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending September 30, 2013 Net of Fee Return Value Periods Ending 9/30/13 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Dodge&Cox 114,071 0.82 0.47 4.15 7.50 6.07 5.33 2/29/04 BCAgg 0.57 -1.63 2.86 5.41 5.12 4.56 2129104 In House Account 4,649 0.00 -0.00 -0.00 -0.00 -0,00 -0.00 -0.00 0.71 12/31/87 3-month T-Bill 0.01 0.07 0.08 0.15 1.17 1.61 2.30 3.65 12131187 Security Lending Income Account 4 1.40 3.19 3.25 9.94 8.27 6.57 6.44 6/30/03 3-month T-Bill 0.01 0.07 0.08 0.15 1.17 1.61 1.60 6130103 Western Asset Management Co. 89,637 0.41 -i.Ott 2.88 6.26 5.39 4.99 9/30/04 BCAgg 0.57 -1.63 2.86 5.41 5.12 4.70 9130104 Real Estate Comp 80,123 -O,66 6.19 10.84 5.15 2.95 4/30/08 Policylndex -0.1/0 8.01 13.32 5.50 3.76 4130108 Hancock 3,377 0.00 5.72 3.84 5/31/12 NCREIF Timberland Index 1.05 9.68 8.27 5131112 Molpus Woodlands Group 6,208 0.00 7.82 2.88 6/30/11 NCREIF Timberland Index 1.05 9.68 5.06 6130111 Multi Employer Property Trust 26,859 3.53 8.27 10.33 10.33 9/30/10 NCREIF ODCE 3.56 13.04 14.27 14.27 9130110 Security Capital 43,680 -3.33 4.75 11.21 5.36 3.14 4/30/08 Wilshire RESI -Z.30 5.47 12.43 5.49 3.68 4130108 22 City of Clearwater Employees Pension Fund Executive Summary Table September 30, 2013 Net of Fee Return Value Calendar Years Name $(000) YTD 2012 2011 2010 2009 2008 Total Fund 795,476 11.64 13.93 -0,36 17.73 30.28 -27,10 Policylndex 9.14 13.17 1.81 13.96 26.00 Domestic Equity Comp 392,892 23.82 18.37 -0,21 22.53 32.14 -37,76 S&P 500 19.81 15.98 2.12 15.05 26.45 .36.99 Large Cap Equity Comp 231,156 20.37 17.02 -41,90 16.87 24.59 35,73 R1000 20.76 16.42 1.51 16.10 28.42 37(;0 Eagle Capital Management 38,696 Russell 1000 Value ING Investment Mgmt 115,189 19.50 18.95 3.04 17.10 24.43 -13,15 RIOOOG 20.88 15.26 2.63 16.72 37.21 -33.43 Manning and Napier 36,815 Russell 1000 Value NTGI-QM R1000V 40,456 20.83 18.09 0.77 15.75 20.35 -36.56 RIOOOV 20.49 17.50 0.39 15.51 19.69 36.r 5 Mid Cap Equity Comp 97,737 27.84 22.00 -6,16 28.03 45.33 -41,74 RMid Cap 24.33 1726 1.56 25.49 40.47 -41.46 Artisan Partners 48,449 31.04 20.82 0.07 33.15 51.38 -4%.57 RMid Cap G 25.43 15.80 1.66 26.39 46.30 -44.32 Wedge Capital Mgmt 49,289 24.20 23.16 0.73 23.30 38.51 -34.59 R Mid Cap V 22.94 18.48 1.33 24.76 34.20 -33.45 Small Cap Equity Comp 63,999 30.48 17.61 2.07 29.27 33.51 -38,63 R2000 27.69 16.34 -4.17 26.85 2719 -.3.3.80 Atlanta Capital Mgmt 15,719 28.63 12.53 10.20 25.98 26.83 -19.57 Russell 2000 26.82 18.05 -6.50 24.51 20.57 2 .92 Riverbridge Partners 32,128 33.15 17.83 4.27 R2000G 32.46 14.59 -292 Systematic Financial Mgt 16,152 27.18 23.50 -9.91 35.50 35.72 -40.71 R2000V 23.07 18.05 -7.50 24.51 20.57 -%'&92 International EQ Comp 114,100 4.88 17.61 -15,04 18.37 57.93 -47,94 MSCIEAFE 16.59 17.90 I I.l'.3 8.21 32.46 -4.3.66 Earnest Partners 42,807 9.15 17.18 -6.55 16.61 55.54 MSCIEAFE 16.59 17.90 11.1'.3 8.21 32.46 Eaton Vance Mgmt 37,403 -1.71 18.55 -19.%7 23.33 67.01 MSCI Emg Mkts -4.0, 18.62 -13.17 19.19 79.02 W11V 33,890 7.00 16.97 -11.64 17.58 55.98 MSCIEAFE 16.59 17.90 11.1'.3 8.21 32.46 Fixed Income Comp 208,360 -1,27 6.53 5.94 7.37 12.37 2.54 BC Agg -1.89 4.22 7.84 6.54 5.93 5.24 23 City of Clearwater Employees Pension Fund Executive Summary Table September 30, 2013 Net of Fee Return Sam Value Calendar Years Name $(000) YTD 2012 2011 2010 2009 2008 Dodge&Cox 114,071 -0,46 7.85 5.10 7.53 14.53 1.37 BC Agg -1.39 4.22 7.84 6.54 5.93 5.24 In House Account 4,649 0.00 -0,00 0.00 0.00 0.00 0.00 3-month T-Bill 0.04 0.07 0.08 0.13 0.16 1.80 Security Lending Income Account 4 1.80 6.93 2.85 21.70 17.48 2.43 3-month T-Bill 0.04 0.07 0.08 0.13 0.16 1.80 Western Asset Management Co. 89,637 .1.1 CJ 5.07 7.23 7.09 9.24 3.92 BC Agg -1.39 4.22 7.84 6.54 5.93 5.24 Real Estate Comp 80,123 4.69 11.69 8.85 30.51 24.68 Policylndex 5.45 15.41 11.62 24.96 29.20 Hancock 3,377 -1.35 NCREIF Timberland Index 3.55 Molpus Woodlands Group 6,208 7.98 0.77 NCREIF Timberland Index 3.55 7.75 Multi Employer Property Trust 26,859 8.40 4.70 12.99 NCREIF ODCE 10.44 10.94 15.99 Security Capital 43,680 2.64 16.22 6.86 31.62 24.68 Wilshire RESI 2.93 17.55 8.56 29.12 29.20 24 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 9/13 20% 18% 16% ---- 1 14% ---- 12% 10% 1-- ---- 1-- 8% ---- ---- 1__ l 4% -.T-- ---Lj ----- 2% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 6.27 17.34 18.67 12.56 12.26 10.31 5.99 7.17 7.41 8.11 8.58 1st Qt 5.43 14.36 16.50 10.89 10.85 8.81 4.85 6.08 6.40 7.16 7.71 Median 4.87 12.41 14.66 10.12 10.05 8.16 4.09 5.48 5.97 6.70 7.16 3rd Qt 4.10 10.99 13.28 8.96 9.08 7.39 3.53 5.07 5.53 6.21 6.62 Low 2.45 4.32 9.61 5.88 6.73 5.22 2.28 4.06 4.69 5.54 5.78 T Total Fund Net Ret 5.34 13.61 16.64 10.83 11.82 10.71 5.79 6.88 7.18 7.76 7.91 Rank 32 34 21 26 8 2 6 8 10 11 18 1 Policy Index Net Ret 3.73 10.51 15.24 10.12 10.59 8.67 4.23 5.79 6.55 7.46 8.10 Rank 83 81 39 51 32 29 43 34 19 15 11 25 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Total Fund Public Sponsors Years Ending December 35% 30% 25% 1 1 20% ---- ---- 15% ---- - 1 10% - ---- ---- ---- 5%0% ---- -5% -10% -15% -20% -25% -30% 1-- -35% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 15.11 14.91 5.13 16.71 28.49 -4.20 11.17 16.46 10.75 14.38 27.82 1st Qt 12.31 13.81 1.90 14.05 22.06 -20.21 9.01 14.48 8.46 12.07 23.15 Median 10.39 12.41 0.96 12.68 19.19 -24.45 7.77 12.51 6.62 10.21 20.14 3rd Qt 9.10 11.35 -0.41 11.19 15.40 -27.29 6.50 10.61 5.36 8.56 17.35 Low 5.98 6.10 -3.16 5.93 4.28 -30.39 4.61 7.20 4.01 5.76 11.40 T Total Fund Net Ret 11.64 13.93 -0.36 17.73 30.28 -27.10 7.20 11.76 6.71 9.90 19.63 Rank 38 21 74 3 2 74 61 59 48 56 54 1 Policy Index Net Ret 9.14 13.17 1.81 13.96 26.00 -27.73 6.69 16.59 8.25 13.48 25.03 Rank 74 32 28 28 8 79 70 4 27 7 11 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund September 30, 2013 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Qtr YTD 1 Year 3 Year 5 Year Incept 12/31/87 om Total Fund Policy Index Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Total Fund ""S . 30,72 ', 9.35 12/31/87 $795,475,583 Policy Index 3.73 9.14 10.51 10.12 8.67 9.46 Rank 2 ING Investment Mgmt " 8;28`:; 19.50 17.79 l8` 11.70 11;4 : 12/31/87 $115,189,292 R1000G 8.12 20.88 19.27 16.94 12.07 9.64 Rank 46 69 78 NTGI-QM R1000V 22,68 16.10 $;96 ;';`2.56 6/30/07 $40,456,352 R1000V 3.95 20.49 22.33 16.25 8.87 2.49 Rank 72 52 48, 56 84 Eagle Capital Management „ 6;47:; 16 42 1/31/13 $38,695,714 Russell 1000 Value 3.95 13.13 Rank 10 Manning and Napier 3�;9$;; "' 11.21 1/31/13 $36,814,683 Russell 1000 Value 3.95 13.13 Rank 71 Artisan Partners X6.16 3:1.04`: '33.29 2I.84 ,18;27 ' ;, ;;10.43 7/31/01 $48,448,562 R Mid Cap G 9.34 25.43 27.55 17.65 13.92 7.43 Rank 2;`, 1'1 18. 5 Wedge Capital Mgmt 6.67 .` 4 20 ",;; 29.77 19:98 13;89 7 c{1: 2/28/07 $49,288,691 R Mid Cap V 5.89 22.94 27.76 17.26 11.86 5.33 Rank 66 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund September 30, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Atlanta Capital Mgmt 1flt25 2b3 3 .87; 22:31 16.28 I36 8/31/03 $15,718,525 Russell 2000 10.21 26.82 30.91 17.74 9.79 9.41 Rank 6 : 26 26 , Systematic Financial Mgt $77„, `27.1 : 3l 29 18:8$ 14;27": " 9;48 8/31/03 $16,151,846 R2000V 7.60 23.07 27.04 16.56 9.13 9.08 Rank 26 Riverbridge Partners 13.10 33;7 34:$i.'; 9/30/10 $32,128,135 R2000G 12.80 32.46 33.05 19.94 19.94 Rank 39, 36 35 14'., Earnest Partners 10.70 9.15 18.81 8.30 4/30/08 $42,806,570 MSCI EAFE 11.61 16.59 24.29 8.97 6.85 0.53 Rank 33 83 53 58 23 WHV 7.23 7.00 11.60 7.45 5.91 : , 4/30/08 $33,890,379 MSCI EAFE 11.61 16.59 24.29 8.97 6.85 0.53 Rank 69 88 78 65 86 Eaton Vance Mgmt 5.50 4`131 ." ".4:09 0".54 7.12 4 23`` 4/30/08 $37,403,195 MSCI Emg Mkts 5.90 -4.05 1.33 -0.00 7.56 -0.64 Rank 52 32 32 54 65 Dodge&Cox 0.82"": ' 4;4` 0.47>` 4:15,,,;, 7,SQ`. 2/29/04 $114,071,061 BC Agg 0.57 -1.89 -1.68 2.86 5.41 4.56 Rank 26 2 :' Western Asset Management Co. 0.41 -2.29 -1.98 � `x:88;�„ x;26 ��;�9,, 9/30/04 $89,637,007 BC Agg 0.57 -1.89 -1.68 2.86 5.41 4.70 Rank 74 81 80 67 % . 49.°'/, 52 Security Lending Income Account 1=�}0 1,.$i1 3::1:9 3.25 10;51 6:71;,;,; 6/30/03 $3,590 3-month T-Bill 0.01 0.04 0.07 0.08 0.15 1.60 In House Account 0.00 0.00 -0.90 -0.00 -0.00 0.71 12/31/87 $4,648,569 3-month T-Bill 0.01 0.04 0.07 0.08 0.15 3.65 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund September 30, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Multi Employer Property Trust 3.53 8.40 8.27 10.33 10.33 9/30/10 $26,858,895 NCREIF ODCE 3.56 10.44 13.04 14.27 14.27 Rank 3l } 65 61 61 Security Capital -3.22 2.64 4.75 11.21 5.36 3.14 4/30/08 $43,679,501 Wilshire RESI -2.80 2.93 5.47 12.43 5.49 3.68 Rank 96 82 83 54 2 : Molpus Woodlands Group 0.00 . 8'' 7.82 2.88 6/30/11 $6,208,434 NCREIF Timberland Index 1.05 3.55 9.68 5.06 Rank 77 4 ' 66 Hancock 0.00 -1.69 6.44 4.02 5/31/12 $3,376,582 NCREIF Timberland Index 1.05 3.55 9.68 8.27 Rank 77 95 70 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 9/30/13 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 OM Domestic Equity Comp S&P 500 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 Domestic Equity Comp 8.53 23.82 25.22 18.12 12.59 9.36 11.25 S&P 500 5.25 19.81 19.35 16.26 10.01 7.57 10.18 Asset Growth(5000) Beginning Market Value 369,463 329,339 325,642 252,774 217,643 222,982 32,236 Net Contributions&Withdrawals -8,004 -14,168 -14,171 -21,717 -28,848 -28,848 -28,848 Gain/Loss+Income 31,433 77,721 81,420 161,836 204,096 198,758 389,504 Ending Market Value 392,892 392,892 392,892 392,892 392,892 392,892 392,892 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Oracle Corp Information Technology 1.75 Energy 6.32 Google Inc Information Technology 1.58 Materials 3.48 Apple Inc Information Technology 1.54 Industrials 14.63 Intl Business McHn Information Technology 1.04 Consumer Discretionary 16.83 Pepsico Inc Consumer Staples 1.04 Consumer Staples 9.51 Home Depot Inc Consumer Discretionary 1.03 Health Care 13.83 Visa Inc Information Technology 0.98 Financials 11.68 Microsoft Corp Information Technology 0.97 Information Technology 22.17 Philip Morris Intl I Consumer Staples 0.94 Telecom Services 0.19 Gilead Sciences Inc Health Care 0.89 Utilities 1.37 Holdings and allocations only include SMA accounts. 31 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 9/30/13 Asset Allocation($000) Cash&Equiv $8,207 2.09% Domestic Equity $384,685 97.91% Risk/Return Analysis Periods from 12/87 to 9/13 Alpha 0.16 Beta 1.09 R-Squared 0.94 12.0 11.0 10.0 9.0 8.0 N 7.0 6.0 5.0 4.0 3.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio E Domestic Equity Comp 11.25 17.82 0.42 0.26 1 S&P 500 10.18 15.84 0.40 T 91-Day Treasury Bill 3.79 1.25 0.00 Holdings and allocations only include SMA accounts. 32 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 9/13 40% 35% 30% 25% E 1 20% 15% --_ 10% ---- --- ---- ---- -1--- 1 5% -1- -1---- -1--- -- -1---- 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 13.59 36.39 34.80 23.01 21.87 16.98 10.43 12.03 11.45 12.36 13.28 1st Qt 9.42 29.16 29.82 18.59 17.84 13.28 7.40 9.08 9.16 10.19 11.04 Median 6.86 22.67 25.80 16.78 15.56 11.28 5.61 7.22 7.49 8.42 9.23 3rd Qt 5.14 18.86 22.83 15.02 14.21 9.90 3.94 5.68 6.31 7.23 8.05 Low 0.14 2.54 9.59 5.99 6.91 6.65 1.21 3.63 4.41 5.80 6.52 Domestic Equity Comp Net Ret 8.53 25.22 27.49 18.12 17.34 12.59 6.13 7.68 8.00 8.94 9.36 Rank 32 39 36 29 29 33 42 43 42 43 48 1 S&P 500 Net Ret 5.25 19.35 24.65 16.26 14.70 10.01 3.89 5.60 6.24 6.89 7.57 Rank 71 69 62 60 66 72 76 78 77 84 84 33 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% 30% ---- 20% ` --- --- ---- ° -10% ---- -20% -30% -40% ---- -50% -60% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 32.43 22.81 8.08 33.09 54.50 -16.98 22.30 23.20 15.94 25.46 58.30 1st Qt 25.69 17.93 2.15 25.10 36.93 -33.54 10.26 17.55 10.55 18.28 39.42 Median 21.22 15.83 -0.17 16.93 28.85 -37.02 5.43 14.71 7.04 13.09 31.53 3rd Qt 18.46 11.91 -4.23 13.65 24.27 -41.08 0.38 10.21 4.66 10.07 27.66 Low 2.88 1.87 -12.26 4.87 9.47 -49.18 -7.56 1.87 -0.10 3.44 17.72 Domestic Equity Comp Net Ret 23.82 18.37 -0.21 22.53 32.14 -37.76 7.18 13.01 8.12 13.18 33.74 Rank 33 21 50 32 39 57 36 62 42 49 42 1 S&P 500 Net Ret 19.81 15.98 2.12 15.05 26.45 -36.99 5.52 15.81 4.89 10.87 28.69 Rank 66 47 26 65 64 49 47 38 71 68 66 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 1 2 3 5 6 32 29 Positive Periods 4 3 10 9 15 14 71 74 Up Market Capture 1.20 1.13 1.13 1.09 Down Market Capture -2,97 1.12 1.01 1.05 Batting Average 0.75 0.67 0.70 0.55 Worst Quarter 1.14 -0,38 -16,27 -13,86 -23,59 -21,93 -23,59 -21,93 Best Quarter 11.42 10.61 14.43 12.58 18.14 15.93 22.08 21.32 Worst 4 Quarters 25.22 19.35 -0,21 1.15 -4,56 -6,90 -57,76 -58,07 Best 4 Quarters 25.22 19.35 29.79 30.18 55.86 49.75 55.86 49.75 Standard Deviation 9.82 9.25 17.21 15.20 22.40 20.95 17.82 15.84 Beta 1.07 1.12 1.06 1.09 Alpha 0.94 0.00 0.49 0.16 R-Squared 0.92 0.98 0.99 0.94 Sharpe Ratio 2.56 2.08 1.05 1.06 0.55 0.47 0.42 0.40 Treynor Ratio 23.43 16.09 11.70 6.84 Tracking Error 3.17 3.16 2.91 4.71 Information Ratio 1.63 0.61 0.92 0.26 35 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 9/30/13 24.0 22.0 ' 20.0 . • 18.0 •• % 0 � • ..•• •' ti • • .w . Median 16.0 . *." Return � •' • • • 14.0 * •• �,' • • 12.0 • 10.0 8.0 8.0 9.8 11.6 13.4 15.2 17.0 18.8 20.6 22.4 24.2 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp 18.12 29 17.21 51 S Standard&Poors 500 16.26 60 15.20 24 Median 16.78 17.28 5 Years Ending 9/30/13 19.9 18.1 16.4 14.6 + 0 12.8 . . �• � y • ' • • • '• . • .. Median 11.0 ;• . '' Return N 9.2 • 1 '�' • ••••�• • •, • •• • 7.4 5.6 3.8 2.0 16.0 17.4 18.8 20.2 21.6 23.0 24.4 25.8 27.2 28.6 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp 12.59 33 22.40 47 S Standard&Poors 500 10.01 72 20.95 25 Median 11.28 22.83 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 9/30/13 Portfolio Performance 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Large Cap Equity Comp R1000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/88 Large Cap Equity Comp 6.50 20.37 20.40 15.79 9.95 7.94 10.24 R1000 6.02 20.76 20.90 16.64 10.53 7.98 10.22 Asset Growth(8000) Beginning Market Value 217,047 192,294 192,251 144,290 107,048 122,389 18,032 Net Contributions&Withdrawals -2 -162 -162 3,306 35,176 35,176 35,176 Gain/Loss+Income 14,111 39,024 39,067 83,560 88,933 73,591 177,948 Ending Market Value 231,156 231,156 231,156 231,156 231,156 231,156 231,156 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Oracle Corp Information Technology 3.22 Energy 7.19 Google Inc Information Technology 2.91 Materials 4.05 Apple Inc Information Technology 2.83 Industrials 10.83 Intl Business McHn Information Technology 1.92 Consumer Discretionary 16.94 Pepsico Inc Consumer Staples 1.91 Consumer Staples 15.77 Home Depot Inc Consumer Discretionary 1.90 Health Care 13.24 Visa Inc Information Technology 1.80 Financials 8.27 Microsoft Corp Information Technology 1.79 Information Technology 23.43 Philip Morris Intl I Consumer Staples 1.73 Telecom Services 0.27 Gilead Sciences Inc Health Care 1.65 Utilities 0.02 Holdings and allocations only include SMA accounts. 37 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 9/30/13 Asset Allocation($000) Cash&Equiv $3,805 1.65% Domestic Equity $227,351 9835% Risk/Return Analysis Periods from 3/88 to 9/13 Alpha 0.04 Beta 0.98 R-Squared 0.96 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7� 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio L Large Cap Equity Comp 10.24 16.33 0.40 -0.01 1 R1000 10.22 16.31 0.40 T 91-Day Treasury Bill 3.76 1.25 0.00 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 9/13 30% 28% 26% 24% 22% ___ 20% 1 18% ---- 16% ---- 14% ---- ---- 12 10% --- 8% ---- 4% 2% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 7.55 27.10 28.92 18.77 17.16 13.32 7.53 8.81 9.04 9.26 10.11 1st Qt 6.08 22.07 25.79 16.83 15.37 11.05 5.27 6.77 7.21 7.80 8.74 Median 5.35 20.17 24.67 16.30 14.79 10.19 4.29 5.99 6.59 7.36 8.21 3rd Qt 5.14 19.11 23.46 15.38 14.29 9.84 3.83 5.61 6.22 6.96 7.65 Low 2.86 14.94 19.00 12.34 11.75 8.42 2.76 4.28 5.24 6.38 6.74 L Large Cap Equity Comp Net Ret 6.50 20.40 24.58 15.79 14.71 9.95 4.43 5.92 6.39 7.34 7.94 Rank 13 47 59 70 62 71 46 53 58 50 60 1 R1000 Net Ret 6.02 20.90 25.40 16.64 15.14 10.53 4.26 5.98 6.51 7.34 7.98 Rank 29 41 35 34 36 40 51 51 53 50 59 39 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% L --- 20% ---- -10% -20% -30% -40% ---- -50%1 U 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 25.33 22.13 6.26 25.54 48.71 -27.27 12.68 22.23 12.00 20.23 40.82 1st Qt 21.17 16.53 2.57 16.74 32.08 -34.79 6.42 17.52 8.98 14.71 32.25 Median 20.00 15.98 2.00 15.17 27.23 -36.90 5.55 15.82 6.19 11.31 28.77 3rd Qt 19.44 13.80 0.77 14.31 26.43 -37.60 4.74 15.50 4.92 10.82 28.54 Low 14.92 9.31 -5.46 12.13 20.95 -43.42 0.21 11.82 2.60 9.44 23.97 L Large Cap Equity Comp Net Ret 20.37 17.02 -0.90 16.87 24.59 -35.23 7.76 11.52 8.63 11.24 31.37 Rank 44 19 83 23 87 27 16 95 28 51 27 1 R1000 Net Ret 20.76 16.42 1.51 16.10 28.42 -37.60 5.77 15.46 6.27 11.39 29.90 Rank 35 31 61 32 43 75 38 77 45 48 36 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 2 6 5 32 28 Positive Periods 4 4 9 10 14 15 70 74 Up Market Capture 0.98 0.99 0.98 0.99 Down Market Capture 1.08 1.01 0.98 Batting Average 0.25 0.33 0.50 0.51 Worst Quarter 0.02 0.12 -15,13 -14,68 -20,96 -22,48 -20,96 -22,48 Best Quarter 10.65 10.96 14.01 12.90 16.91 16.49 20.12 21.88 Worst 4 Quarters 20.40 20.90 -6,90 0.91 -7.21 -6.14 -37,57 -38,26 Best 4 Quarters 20.40 20.90 28.89 30.06 49.31 51.57 49.31 51.57 Standard Deviation 9.45 9.37 16.21 15.80 21.20 21.45 16.33 16.31 Beta 1.00 1.02 0.98 0.98 Alpha -0,1(} -0,26 -0,10 0.04 R-Squared 0.99 0.99 0.99 0.96 Sharpe Ratio 2.15 2.22 0.97 1.05 0.46 0.48 0.40 0.40 Treynor Ratio 20.35 15.37 9.94 6.60 Tracking Error 0.86 1.52 1.98 3.08 Information Ratio -0,50 -0,46 -0,31 -0,01 41 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios 3 Years Ending 9/30/13 20.0 19.0 , 18.0 • 17.0 • . ,• • o • • •` Median 16.0 . + •, . Return i 15.0 �. 14.0 13.0 • ••` 12.0 9.0 10.4 11.8 13.2 14.6 16.0 17.4 18.8 20.2 21.6 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 15.79 70 16.21 70 1 R1000 16.64 34 15.80 57 Median 16.30 15.70 5 Years Ending 9/30/13 14.0 13.2 12.5 . 11.7 • • 0 11.0 , • Sp IL 10.2 •'' Median • Retdn N 9.5 8.7 • 8.0 7.2 6.5 15.0 16.2 17.4 18.6 19.8 21.0 22.2 23.4 24.6 25.8 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 9.95 71 21.20 58 1 R1000 10.53 40 21.45 66 Median 10.19 20.96 42 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 9/30/13 Portfolio Performance 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 IL -2.0 j14 i Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 ING Investment Mgmt R1000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 ING Investment Mgmt 8.28 19.50 17.79 17.58 11.70 9.39 11.49 R1000G 8.12 20.88 19.27 16.94 12.07 7.83 9.64 Asset Growth(5000) Beginning Market Value 106,383 96,396 97,797 80,621 52,048 42,398 17,469 Net Contributions&Withdrawals -1 -3 -3 -13,007 10,380 10,380 10,380 Gain/Loss+Income 8,807 18,796 17,396 47,576 52,761 1 62,411 87,340 Ending Market Value 115,189 115,189 115,189 115,189 115,189 115,189 115,189 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Google Inc Information Technology 3.78 Energy 4.59 Apple Inc Information Technology 3.77 Materials 3.46 Intl Business McHn Information Technology 3.15 Industrials 13.06 Visa Inc Information Technology 2.97 Consumer Discretionary 21.17 Oracle Corp Information Technology 2.88 Consumer Staples 12.95 Gilead Sciences Inc Health Care 2.71 Health Care 12.11 Home Depot Inc Consumer Discretionary 2.50 Financials 5.20 Comcast Corp New Consumer Discretionary 2.46 Information Technology 27.46 E M C Corp Mass Information Technology 2.42 Telecom Services 0.00 Starbucks Corp Consumer Discretionary 2.36 Utilities 0.00 43 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 9/30/13 Asset Allocation($000) Cash&Equiv $1,527 1.33% Domestic Equity $113,662 98.67% Risk/Return Analysis Periods from 12/87 to 9/13 Alpha 0.61 Beta 0.84 R-Squared 0.93 12.0 11.0 10.0 9.0 8.0 N 7.0 6.0 5.0 4.0 3.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio i ING Investment Mgmt 11.49 16.35 0.47 0.22 1 R1000G 9.64 18.59 0.31 T 91-Day Treasury Bill 3.79 1.25 0.00 44 City of Clearwater Employees Pension Fund Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 35% 30% 25% ---- 20% 1 15% 10% ---- Ef LL::.v-o -i:---- ---- 3a. 5% oo 0%1 V Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 18.52 29.76 31.25 23.93 20.09 19.06 11.19 12.46 10.99 11.54 12.07 1st Qt 10.42 23.61 27.02 17.97 16.99 13.09 6.99 8.61 8.96 9.52 9.86 Median 8.18 20.94 24.76 16.70 15.55 11.48 5.74 7.78 7.87 8.26 8.79 3rd Qt 6.77 18.38 23.06 15.41 14.37 10.22 4.78 7.06 6.95 7.70 8.12 Low 5.32 14.11 18.54 12.81 12.23 8.79 3.57 5.93 5.86 6.88 7.38 i ING Investment Mgmt Net Ret 8.28 17.79 24.87 17.58 16.45 11.70 6.62 8.26 8.24 9.20 9.39 Rank 46 78 49 31 30 45 32 36 34 30 36 1 R1000G Net Ret 8.12 19.27 24.14 16.94 15.86 12.07 5.76 7.60 7.41 7.86 7.83 Rank 52 67 61 44 42 42 49 55 60 70 87 45 City of Clearwater Employees Pension Fund Large Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% -- 1 --- 30% 20% 10% --- -- ---- ---- 0% l J-1-10% -20% -30% -40% --- -50% ---- -60% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 29.90 23.92 10.07 26.63 65.77 -28.66 25.50 22.62 16.36 20.01 50.05 1st Qt 23.51 18.01 2.92 19.99 41.08 -35.73 19.60 13.28 12.02 14.70 35.87 Median 20.86 15.41 0.47 17.20 35.27 -38.77 12.84 9.76 8.86 10.78 31.11 3rd Qt 18.79 13.92 -3.37 14.52 29.76 -42.26 8.72 5.65 5.72 7.53 27.77 Low 14.76 11.07 -7.36 10.68 24.19 -48.87 4.35 -5.08 2.59 4.67 20.65 i ING Investment Mgmt Net Ret 19.50 18.95 3.04 17.10 24.43 -33.18 17.10 7.14 12.02 10.27 30.00 Rank 69 17 24 55 94 17 34 66 25 55 59 1 R1000G Net Ret 20.88 15.26 2.63 16.72 37.21 -38.43 11.82 9.09 5.27 6.30 29.75 Rank 48 52 27 60 42 48 58 54 79 81 60 46 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Large Growth Portfolios 24 22 20 i_ 16% __________ s _____ ]4% - ----- L s 12% a __________ ___1_____ 10 8 6% Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar]3 Dee 12 Sep 12 High 19.45 21.70 15.08 14.10 17.83 1 st Qt 1 7.68 1906. 13.38 1 1.65 14.85 Median 16.63 18.02 12.29 10.50 13.64 3rd Qt 15.41 16.79 11.21 9.57 11.96 Low 13.69 14.90 9.45 7.03 9.82 :i iNG invesnnent Mgmt Net Ret 17.58 19.21 14.1 1 12.80 16.01 Rank 26 22 13 11 15 1 R 1000 Net Ret 1 6.94 18.68 13.06 11.35 14.74 Rank 41 35 33 32 27 ING Investment Mgmt Value Added Analysis - Net of Fee 7.0 6.0% 55 5.0% 4.0 3.0 2.0% 2.0 17 1.0% (1 6 U 7 0.5 03 0.6 0.2 04 O4 (19 -2.(1 -3.0 -4.0 -5.0% -4.6 12/08 3/09 6/()9 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R 1000G - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 47 City of Clearwater Employees Pension Fund Risk Measure Summary ING Investment Mgmt Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 3 3 6 6 30 33 Positive Periods 3 3 9 9 14 14 73 70 Up Market Capture 0.93 1.03 0.97 0.95 Down Market Capture 1.08 1.01 0.99 0.79 Batting Average 0.25 0.50 0.50 0.53 Worst Quarter -1.43 -1,33 -12,86 -13,14 -18,51 -22,79 -18,51 -22,79 Best Quarter 9.08 9.54 17.02 14.69 17.02 16.32 23.26 26.75 Worst 4 Quarters 17.79 19.27 3.04 2.63 -5,43 -1,85 -33,74 -45,64 Best 4 Quarters 17.79 19.27 32.37 29.20 43.38 49.75 44.38 49.75 Standard Deviation 10.42 10.22 16.10 15.67 19.73 20.77 16.35 18.59 Beta 1.00 1.02 0.93 0.84 Alpha -0,71 0.07 0.09 0.61 R-Squared 0.99 0.98 0.96 0.93 Sharpe Ratio 1.70 1.88 1.09 1.07 0.58 0.57 0.47 0.31 Treynor Ratio 17.74 17.14 12.39 9.12 Tracking Error 0.91 2.05 4.18 5.28 Information Ratio -1.41 0.30 -0,16 0.22 48 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios 3 Years Ending 9/30/13 23.9 22.5 21.1 19.7 • 0 18.3 ; •: • 16.9 . 1 ... Median 15.5 ,•i=' + +•,: • + • Return 14.1 • , • . • 12.7 • , 11.4 • 10.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i ING Investment Mgmt 17.58 31 16.10 46 1 R1000G 16.94 44 15.67 40 Median 16.70 16.44 5 Years Ending 9/30/13 19.9 18.1 16.4 , • 14.6 • •• , 12.8 • + 7 • �' Median 11.0 • . , . y '• ± ' Return 7.4 , 5.6 • • 3.8 2.0 14.0 15.5 17.0 18.5 20.0 21.5 23.0 24.5 26.0 27.5 29.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i ING Investment Mgmt 11.70 45 19.73 25 1 R1000G 12.07 42 20.77 45 Median 11.48 21.28 49 City of Clearwater Employees Pension Fund Equity Summary Statistics ING Investment Mgmt Period Ending 9/13 Portfolio R1000G EMEEMMEMMMMMEMMEMMMEM Total Number Of Securities 64 616 Equity Market Value 113,661,950 Average Capitalization $(000) 81,570,596 87,646,452 Median Capitalization $(000) 28,206,140 7,765,296 Equity Segment Yield 1.25 1.67 Equity Segment P/E -Average 20.62 22.35 Equity Segment P/E - Median 22.14 21.65 Equity Segment Beta 1.01 0.94 Price/Book Ratio 3.48 4.25 Debt/Equity Ratio 44.49 47.87 Five Year Earnings Growth 15.89 13.53 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Google Inc 4,297,214 3.78 -0.51 Apple Inc 4,285,983 3.77 21.16 Intl Business McHn 3,577,678 3.15 -2.61 Visa Inc 3,369,093 2.97 4.76 Oracle Corp 3,276,168 2.88 8.39 Gilead Sciences Inc 3,075,390 2.71 22.71 Home Depot Inc 2,842,100 2.50 -1.57 Comcast Corp New 2,799,300 2.46 8.79 E M C Corp Mass 2,750,537 2.42 8.63 Starbucks Corp 2,682,405 2.36 17.87 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Facebook Inc 102.09 Macys Inc. -9.34 Best Buy Inc 37.84 Kraft Foods Group In -6.14 Celgene Corp 31.67 Gap Inc -3.14 Cognizant Technology 31.16 Intl Business McHn -2.61 Eog Res Inc 28.72 Pepsico Inc -2.11 F5 Networks Inc 24.65 Home Depot Inc -1.57 Gilead Sciences Inc 22.71 Google Inc -0.51 Apple Inc 21.16 Cvs Corp -0.39 Michael Kors Hldgs L 20.15 Express Scripts Hldg 0.15 Tibco Software Inc 19.58 Philip Morris Intl I 1.04 50 City of Clearwater Employees Pension Fund Equity Contribution to Return ING Investment Mgmt Period Ending 9/13 Portfolio R1000G EMEEMMEMMMMMEMMEMMMEM Total Number Of Securities 64 616 Equity Market Value 113,661,950 Average Capitalization $(000) 81,570,596 87,646,452 Median Capitalization $(000) 28,206,140 7,765,296 Equity Segment Yield 1.25 1.67 Equity Segment P/E -Average 20.62 22.35 Equity Segment P/E - Median 22.14 21.65 Equity Segment Beta 1.01 0.94 Price/Book Ratio 3.48 4.25 Debt/Equity Ratio 44.49 47.87 Five Year Earnings Growth 15.89 13.53 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Facebook Inc 1,867,923 1.64 102.09 Apple Inc 4,285,983 3.77 21.16 Celgene Corp 2,268,928 2.00 31.67 Gilead Sciences Inc 3,075,390 2.71 22.71 Eog Res Inc 2,136,314 1.88 28.72 Best Buy Inc 1,539,375 1.36 37.84 Cognizant Technology 1,593,949 1.40 31.16 Starbucks Corp 2,682,405 2.36 17.87 Halliburton Co 1,977,039 1.74 15.71 Ulta Salon Cosmetcs 1,572,094 1.38 19.27 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Macys Inc. 1,242,844 1.09 -9.34 Intl Business McHn 3,577,678 3.15 -2.61 Kraft Foods Group In 1,521,284 1.34 -6.14 Home Depot Inc 2,842,100 2.50 -1.57 Gap Inc 1,334,476 1.17 -3.14 Pepsico Inc 1,589,205 1.40 -2.11 Google Inc 4,297,214 3.78 -0.51 Cvs Corp 1,290,495 1.14 -0.39 Express Scripts Hldg 1,501,872 1.32 0.15 Equifax Inc 900,144 0.79 1.92 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 4.71 4.51 14.18 15.47 -0,06 0.01 -0,05 Materials 3.15 4.48 5.05 8.85 -0,12 - , 1 - ,1 Industrials 13.53 12.00 10.02 9.92 0.01 0.03 0.04 Consumer Discretionary 19.51 19.81 9.23 8.92 0.06 -0,00 0.06 Consumer Staples 13.58 13.18 3.19 0.74 0.33 -0,03 0.30 Health Care 12.07 11.86 15.32 10.67 0.56 0.01 0.57 Financials 5.31 5.54 8.08 3.70 0.23 0.01 0.24 Information Technology 28.14 26.09 5.48 9.76 -1,20 0.03 -1.17 Telecom. Services 0.00 2.32 -3,97 0.00 0.28 0.28 Utilities 0.00 0.22 13.37 0.00 - , 1 - , 1 100.00 100.00 8.24 8.10 -0,18 0.32 0.14 Index-RIOOOG 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 0.24% [Actual Return 8.47%] - [Buy Hold Return 8.24% 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 9/13 %Allocation %Return %Variance Energy 4.71 14.18 194.51 15.47 -0.05 Materials P 3.15 5 -0.13 4.48 8.85 Industrials 12.5 9.91 2 0.04 Con.Discretionary 19 81 8.2 0.06 Consumer Staples 13.58 3.19 0.30 13.18 0.74 Health Care 12.07 15.32 0.57 11.86 10.67 Financials 5.31 Z,70 .08 0.24 5.54 Infomation Tech. 28.14 -1.17 26.09 9.76 Telecom. Services 00 0.28 12.32 -3.97 0.00 -0.01 Utilities 0.22 13.37 ING Investment Mgmt ❑ R1000G 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 9/30/13 Portfolio Performance 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 OM NTGI-QM R1000V R1000V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 6/30/07 NTGI-QM R1000V 3.97 20.83 22.68 16.10 8.96 2.56 R1000V 3.95 20.49 22.33 16.25 8.87 2.49 Asset Growth($000) Beginning Market Value 38,913 95,899 94,454 38,755 39,485 26,197 Net Contributions&Withdrawals 0 -66,500 -66,500 -25,811 -25,811 -25,811 Gain/Loss+Income 1,544 11,058 12,502 27,513 26,782 40,071 Ending Market Value 40,456 40,456 40,456 40,456 40,456 40,456 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 9/30/13 Asset Allocation($000) Cash&Equiv $0 0.00%0 Domestic Equity $40,456 100.00% EM 49 Risk/Return Analysis Periods from 6/07 to 9/13 Alpha 0.02 Beta 1.00 R-Squared 1.00 2.8 2.6 2.4 2.2 2.0 1.8 N 1.6 1.4 1.2 1.0 0.8 0.6 j j 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio n NTGI-QM R1000V 2.56 21.35 0.08 0.09 1 R1000V 2.49 21.42 0.08 T 91-Day Treasury Bill 0.80 0.73 0.00 55 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 35% 30% 25% ------- 20% 15% ------- 10% ------- 5% ------- 0% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Qtr Year Years Years Years Years Years High 6.88 29.94 31.22 19.72 24.48 13.38 6.18 1st Qt 5.60 25.25 28.02 17.53 15.60 11.11 4.87 Median 4.73 22.47 26.04 16.28 14.66 10.07 3.91 3rd Qt 3.89 16.42 19.88 14.27 13.68 9.27 3.10 Low 0.69 8.43 12.67 9.89 10.51 8.04 1.97 n NTGI-QM R1 000V Net Ret 3.97 22.68 26.23 16.10 14.40 8.96 2.71 Rank 72 48 46 56 60 84 87 1 R1000V Net Ret 3.95 22.33 26.54 16.25 14.37 8.87 2.63 Rank 74 53 41 52 61 86 89 56 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% 20% -------- 10% -------- 0% -10% -20% -30% -40% - ----- -50 9/30/13 YTD 2012 2011 2010 2009 2008 High 27.17 20.13 10.44 20.41 41.26 -24.88 1st Qt 23.67 17.06 6.11 16.73 29.13 -32.86 Median 21.01 13.27 0.66 14.45 24.15 -35.75 3rd Qt 16.38 8.57 -2.34 11.34 20.59 -38.13 Low 10.72 4.71 -7.29 9.48 14.13 -41.75 n NTGI-QM R1 000V Net Ret 20.83 18.09 -0.77 15.75 20.35 -36.86 Rank 52 13 65 40 77 64 1 R1000V Net Ret 20.49 17.50 0.39 15.51 19.69 -36.85 Rank 57 19 55 43 82 63 57 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Large Value Portfolios 22% 20% 18% 16% 14% 12% 10 n _______ 8% 6% Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar]3 Dee 12 Sep 12 High 19.72 21.30 14.99 12.68 14.66 1 st Qt 17.61 19.59 13.10 11.22 12.82 Median 16.33 18.60 12.04 10.22 11.67 3rd Qt 15.37 17.40 11.12 9.09 10.70 Low 12.89 14.72 8.73 7.18 8.61 n NTGi-QM R1000V Net Ret 16.10 1 8.38 12.63 10.70 11.76 Rank 61 55 36 40 48 1 R1000V Net Ret 16.25 18.51 12.74 10.86 11.83 Rank 56 52 33 37 47 NTGI-QM RIOOOV Value Added Analysis - Net of Fee LO% 0.8 0.6%. 0.4%. 0.4 U3 13 0.2% U 0 1 (1:1 U I 00 00 00 00 Ua 00 00 00 0.0 00 -0.2 -0.4 -0.6 -1.2% -1.4% 3 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R 1000V - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 58 City of Clearwater Employees Pension Fund Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 6 6 11 11 Positive Periods 4 4 9 9 14 14 14 14 Up Market Capture 1.02 0.99 1.00 1.00 Down Market Capture 1.00 1.00 1.00 Batting Average 1.00 0.92 0.95 0.88 Worst Quarter 1.53 1.53 -16,15 -16,21 -22,1 -22.17 -22.1 -22,17 Best Quarter 12.60 12.31 12.60 13.11 18.29 18.24 18.29 18.24 Worst 4 Quarters 22.68 22.33 -1,78 -1,90 -10,32 -10,62 -42,31 -42.42 Best 4 Quarters 22.68 22.33 29.89 30.90 54.33 53.57 54.33 53.57 Standard Deviation 9.91 9.63 16.10 16.31 22.65 22.74 21.35 21.42 Beta 1.02 0.99 1.00 1.00 Alpha -0,05 0.02 0.03 0.02 R-Squared 1.00 1.00 1.00 1.00 Sharpe Ratio 2.28 2.31 0.99 0.99 0.39 0.38 0.08 0.08 Treynor Ratio 22.04 16.23 8.84 1.77 Tracking Error 0.28 0.93 0.73 0.65 Information Ratio 1.14 -0,17 0.09 0.09 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Value Portfolios 3 Years Ending 9/30/13 24.0 22.0 ;i3 20.0 • • 18.0 <. � ;'• ' • ' Median 16.0 �• t.• ; Return • . • N 14.0 ' • 12.0 • • . 10.0 8.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 16.10 56 16.10 49 1 R1000V 16.25 52 16.31 58 Median 16.28 16.17 5 Years Ending 9/30/13 14.0 o,- 13.0 12.0 11.0 • w . • .i • • � 10.0 -f • Median 7� •••w ' Return y • • �� 9.0 • 8.0 •• • 7.0 6.0 14.0 15.8 17.6 19.4 21.2 23.0 24.8 26.6 28.4 30.2 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 8.96 84 22.65 52 1 R1000V 8.87 86 22.74 56 Median 10.07 22.63 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 9/30/13 Portfolio Performance 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 OM Eagle Capital Management Russell 1000 Value Incept Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD 1/31/13 Eagle Capital Management 6.47 10.97 16.42 Russell 1000 Value 3.95 7.28 13.13 Asset Growth(5000) Beginning Market Value 36,344 34,870 33,239 Net Contributions&Withdrawals 0 -1 -1 Gain/Loss+Income 2,352 3,827 5,458 Ending Market Value 38,696 38,696 38,696 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Berkshire Hathaway I Financials 7.29 Energy 6.90 Oracle Corp Information Technology 7.24 Materials 8.06 Ann Plc Financials 5.98 Industrials 1.23 Microsoft Corp Information Technology 5.34 Consumer Discretionary 14.19 Ecolab Inc Materials 4.72 Consumer Staples 18.99 Liberty Global Plc Consumer Discretionary 4.33 Health Care 6.36 Coca Cola Co Consumer Staples 3.98 Financials 24.47 Unitedhealth Group I Health Care 3.88 Information Technology 19.80 Noble Energy Inc Energy 3.79 Telecom Services 0.00 Wal Mart Stores Inc Consumer Staples 3.73 Utilities 0.00 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 9/30/13 Asset Allocation($000) Cash&Equiv $828 2.14% Domestic Equity $37,868 97.86% 49 Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 9/13 Alpha N/A Beta N/A R-Squared N/A 18.0 16.0 14.0 12.0 10.0 7� 8.0 6.0 4.0 2.0 0.0 -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 11.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio E Eagle Capital Management 16.42 7.39 2.21 1 Russell 1000 Value 13.13 9.89 1.32 T 91-Day Treasury Bill 0.06 0.02 0.00 62 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 13% 12% 11% E 10% ------------ 9% 8% 7% 1 6% E -------------- 5% ------------ 4% ----1- 3% 2% 1% 0% Last Last 2 Qtr Qtrs High 6.88 12.48 1st Qt 5.60 10.51 Median 4.73 7.76 3rd Qt 3.89 5.23 Low 0.69 1.19 Eagle Capital Management Net Ret 6.47 10.97 Rank 10 19 1 Russell 1000 Value Net Ret 3.95 7.28 Rank 74 55 63 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 28% 26% 24% 22% 20% 1 18% 16% - F ---------- 14% 12% 10% 9/30/13 YTD High 27.17 1st Qt 23.67 Median 21.01 3rd Qt 16.38 Low 10.72 Eagle Capital Management Net Ret 16.42 Rank 74 1 Russell 1000 Value Net Ret 20.49 Rank 57 64 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 9/13 Portfolio Russell 1000 Value EMEMMEMEMEMMMMMMMMEMM Total Number Of Securities 29 654 Equity Market Value 37,867,535 Average Capitalization $(000) 102,303,849 102,090,588 Median Capitalization $(000) 35,443,197 6,026,226 Equity Segment Yield 1.30 2.39 Equity Segment P/E -Average 19.61 16.38 Equity Segment P/E - Median 18.90 17.71 Equity Segment Beta 0.80 1.11 Price/Book Ratio 2.34 1.34 Debt/Equity Ratio 48.49 51.95 Five Year Earnings Growth 7.68 3.51 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Berkshire Hathaway I 2,758,293 7.29 1.42 Oracle Corp 2,739,842 7.24 8.39 Aon Plc 2,262,976 5.98 15.98 Microsoft Corp 2,021,917 5.34 -2.84 Ecolab Inc 1,787,556 4.72 16.21 Liberty Global Plc 1,636,831 4.33 11.11 Coca Cola Co 1,503,836 3.98 -4.87 Unitedhealth Group I 1,468,005 3.88 9.77 Noble Energy Inc 1,434,014 3.79 11.85 Wal Mart Stores Inc 1,412,636 3.73 -0.11 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Twenty First Centy F 16.81 Coca Cola Co -4.87 Ecolab Inc 16.21 Microsoft Corp -2.84 Aon Plc 15.98 Pepsico Inc -2.11 Altera Corp 13.11 Google Inc -0.51 Noble Energy Inc 11.85 Wal Mart Stores Inc -0.11 Liberty Global Plc 11.11 Berkshire Hathaway I 1.42 Mondelez Intl Inc 10.61 Apache Corp 1.81 Morgan Stanley 10.52 Praxair Inc 4.92 Comcast Corp New 10.37 Goldman Sachs Group 4.94 Constellation Brands 10.13 News Corp New 4.97 65 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 9/13 Portfolio Russell 1000 Value EZZMMMMMMZMMMMMMMMMMMM Total Number Of Securities 29 654 Equity Market Value 37,867,535 Average Capitalization $(000) 102,303,849 102,090,588 Median Capitalization $(000) 35,443,197 6,026,226 Equity Segment Yield 1.30 2.39 Equity Segment P/E -Average 19.61 16.38 Equity Segment P/E - Median 18.90 17.71 Equity Segment Beta 0.80 1.11 Price/Book Ratio 2.34 1.34 Debt/Equity Ratio 48.49 51.95 Five Year Earnings Growth 7.68 3.51 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Aon Plc 2,262,976 5.98 15.98 Ecolab Inc 1,787,556 4.72 16.21 Twenty First Centy F 1,400,300 3.70 16.81 Oracle Corp 2,739,842 7.24 8.39 Liberty Global Plc 1,636,831 4.33 11.11 Noble Energy Inc 1,434,014 3.79 11.85 Unitedhealth Group I 1,468,005 3.88 9.77 Morgan Stanley 1,355,585 3.58 10.52 Comcast Corp New 1,322,785 3.50 10.37 Mondelez Intl Inc 1,200,244 3.17 10.61 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Coca Cola Co 1,503,836 3.98 -4.87 Microsoft Corp 2,021,917 5.34 -2.84 Pepsico Inc 1,168,650 3.09 -2.11 Google Inc 1,138,683 3.01 -0.51 Wal Mart Stores Inc 1,412,636 3.73 -0.11 News Corp New 167,827 0.44 4.97 Apache Corp 1,174,932 3.11 1.81 Goldman Sachs Group 727,766 1.92 4.94 Berkshire Hathaway I 2,758,293 7.29 1.42 Berkley W R Corp 865,772 2.29 5.15 66 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Eagle Capital Management Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 6.86 15.06 7.09 3.36 0.26 0.05 0.30 Materials 7.73 2.66 11.25 11.64 -0,03 0.39 0.36 Industrials 1.20 9.65 9.81 8.65 0.01 -0,40 -0,38 Consumer Discretionary 13.60 6.23 11.66 8.15 0.48 0.31 0.79 Consumer Staples 19.85 5.95 2.10 1.98 0.02 -0,27 -0,25 Health Care 6.20 12.94 9.49 4.46 0.31 -0,04 0.28 Financials 24.29 29.27 7.21 2.38 1.17 0.08 1.25 Information Technology 20.28 8.87 4.18 5.32 -4 ,23 0.16 -0,07 Telecom. Services 0.00 2.90 -2,92 0.00 0.20 0.20 Utilities 0.00 6.46 -0,08 0.00 0.26 0.26 100.00 100.00 6.66 3.93 2.00 0.74 2.73 Index-Russell 1000 Value 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 -0.05% [Actual Return 6.61%] - [Buy Hold Return 6.66% 67 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Eagle Capital Management Quarter Ending 9/13 %Allocation %Return %Variance Energy 7.09 15.06. !"3.36 0.30 Materials 7.73 11.25 2.66 11.64 0.36 Industrials 9.81 -0.38 9.65 8.65 Con.Discretionary 6 23 13.60 8.1 5 1.66 0.79 Consumer Staples 19.85 2.10 -0.25 :71 1.98 Health Care 9.49 0.28 94 P23 Financials 29 .21 1.25 29.27 20.28 4.18 -0.07 Infomation Tech. 8.87 532 Telecom. Services .00 0.20 2.90 -2.92 0.26 Utilities 0 6.46 -0.08 Eagle Capital Management ❑ Russell 1000 Value 68 City of Clearwater Employees Pension Fund Manning and Napier as of 9/30/13 Portfolio Performance 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Qtr 2 Qtr Incept 1/31/13 OM Manning and Napier Russell 1000 Value Incept Net of Fee Returns Qtr 2 Qtr 1/31/13 Manning and Napier 3.98 5.88 11.21 Russell 1000 Value 3.95 7.28 13.13 Asset Growth(5000) Beginning Market Value 35,408 34,770 33,104 Net Contributions&Withdrawals -1 -1 -1 Gain/Loss+Income 1,408 2,045 3,712 Ending Market Value 36,815 36,815 36,815 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Johnson&Johnson Health Care 4.04 Energy 15.83 Chevron Corp Energy 3.83 Materials 1.63 Pfizer Inc Health Care 3.75 Industrials 13.92 Exxon Mobil Corp Energy 3.74 Consumer Discretionary 6.29 Microsoft Corp Information Technology 3.73 Consumer Staples 21.40 Wal Mart Stores Inc Consumer Staples 3.56 Health Care 24.25 Procter&Gamble Co Consumer Staples 3.04 Financials 0.78 Coca Cola Co Consumer Staples 3.03 Information Technology 14.35 Novartis A G Health Care 2.94 Telecom Services 1.42 Apple Inc Information Technology 2.85 Utilities 0.11 69 City of Clearwater Employees Pension Fund Manning and Napier as of 9/30/13 Asset Allocation($000) Cash&Equiv $1,449 3.94% Domestic Equity $35,366 96.06% Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 9/13 Alpha N/A Beta N/A R-Squared N/A 14.0 13.0 12.0 10.0 9.0 11.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Manning and Napier 11.21 8.77 1.27 1 Russell 1000 Value 13.13 9.89 1.32 T 91-Day Treasury Bill 0.06 0.02 0.00 70 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 13% 12% 11% 10% ------------ 9% 8% 7% 1 6% -------------- 5% ------------ 4% --1------- 3% 2% 1% 0% Last Last 2 Qtr Qtrs High 6.88 12.48 1st Qt 5.60 10.51 Median 4.73 7.76 3rd Qt 3.89 5.23 Low 0.69 1.19 M Manning and Napier Net Ret 3.98 5.88 Rank 71 68 1 Russell 1000 Value Net Ret 3.95 7.28 Rank 74 55 71 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 28% 26% 24% 22% 20% 1 18% 16% ------------ 14% 12% M 10% 9/30/13 YTD High 27.17 1st Qt 23.67 Median 21.01 3rd Qt 16.38 Low 10.72 M Manning and Napier Net Ret 11.21 Rank 92 1 Russell 1000 Value Net Ret 20.49 Rank 57 72 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 9/13 Portfolio Russell 1000 Value EMEEMMEMMMMMEMEMEMMMEMM Total Number Of Securities 91 654 Equity Market Value 35,365,702 Average Capitalization $(000) 140,213,101 102,090,588 Median Capitalization $(000) 42,680,416 6,026,226 Equity Segment Yield 3.11 2.39 Equity Segment P/E -Average 16.05 16.38 Equity Segment P/E - Median 17.71 17.71 Equity Segment Beta 0.75 1.11 Price/Book Ratio 2.76 1.34 Debt/Equity Ratio 39.35 51.95 Five Year Earnings Growth 7.43 3.51 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Johnson& Johnson 1,424,663 4.04 1.72 Chevron Corp 1,351,080 3.83 3.52 Pfizer Inc 1,325,167 3.75 3.34 Exxon Mobil Corp 1,321,488 3.74 -4.11 Microsoft Corp 1,316,345 3.73 -2.84 Wal Mart Stores Inc 1,258,208 3.56 -0.11 Procter& Gamble Co 1,074,361 3.04 -1.08 Coca Cola Co 1,071,209 3.03 -4.87 Novartis A G 1,037,196 2.94 8.49 Apple Inc 1,004,989 2.85 21.16 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Teck Resources Ltd 25.60 Telekomunikasi Ind -15.04 L Brands Inc 24.68 Hewlett Packard Co -14.85 McGraw Hill Inc 23.89 Conagra Foods Inc -12.55 Walgreen Co 22.50 Kellogg Co -7.87 Siemens A G 22.27 Mattel Inc -6.81 Apple Inc 21.16 Target Corp -6.50 Total Sa 20.33 Sysco Corp -6.05 Emerson Elec Co 19.41 Newmont Mng Corp Hld -5.43 Lockheed Martin Corp 18.71 Coca Cola Co -4.87 Philips Elec(Kon) 18.61 Baxter Intl Inc -4.50 73 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 9/13 Portfolio Russell 1000 Value EMEEMMEMMMMMEMEMEMMMEM Total Number Of Securities 91 654 Equity Market Value 35,365,702 Average Capitalization $(000) 140,213,101 102,090,588 Median Capitalization $(000) 42,680,416 6,026,226 Equity Segment Yield 3.11 2.39 Equity Segment P/E -Average 16.05 16.38 Equity Segment P/E - Median 17.71 17.71 Equity Segment Beta 0.75 1.11 Price/Book Ratio 2.76 1.34 Debt/Equity Ratio 39.35 51.95 Five Year Earnings Growth 7.43 3.51 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Apple Inc 1,004,989 2.85 21.16 Siemens A G 596,283 1.69 22.27 Total Sa 484,327 1.37 20.33 Conocophillips 572,345 1.62 16.11 United Technologies 538,130 1.52 16.60 Novartis A G 1,037,196 2.94 8.49 Boeing Co 437,688 1.24 15.22 Emerson Elec Co 307,131 0.87 19.41 3m Co 550,122 1.56 9.81 Ericsson L M Tel Co 290,389 0.82 18.35 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Exxon Mobil Corp 1,321,488 3.74 -4.11 Coca Cola Co 1,071,209 3.03 -4.87 Microsoft Corp 1,316,345 3.73 -2.84 Intel Corp 739,032 2.09 -4.44 Hewlett Packard Co 198,324 0.56 -14.85 Pepsico Inc 814,398 2.31 -2.11 Unilever Plc 408,639 1.16 -3.78 Target Corp 212,670 0.60 -6.50 Cisco Sys Inc 441,490 1.25 -2.99 McDonalds Corp 630,368 1.79 -2.03 74 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Manning and Napier Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 15.67 15.06 4.61 3.36 0.20 -0,00 0.19 Materials 1.53 2.66 10.02 11.64 -0,02 -0,09 -0,11 Industrials 12.76 9.65 13.00 8.65 0.56 0.15 0.70 Consumer Discretionary 6.71 6.23 0.97 8.15 -0,48 0.02 -0,46 Consumer Staples 22.22 5.95 -0,29 1.98 -0,50 -0,32 -0,82 Health Care 24.22 12.94 3.56 4.46 -0,22 0.06 -0,16 Financials 0.70 29.27 15.71 2.38 0.09 0.44 0.54 Information Technology 14.65 8.87 3.48 5.32 -0,27 0.08 -0,19 Telecom. Services 1.42 2.90 3.24 -2,92 0.09 0.10 0.19 Utilities 0.12 6.46 -4.32 -0,08 - , 1 0.25 0.25 100.00 100.00 4.06 3.93 -0,57 0.70 0.13 Index-Russell 1000 Value 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 0.05% [Actual Return 4.10%] - [Buy Hold Return 4.06% 75 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Manning and Napier Quarter Ending 9/13 %Allocation %Return %Variance Energy 15.67 4.61 15.06 : !?3.36 1 0.19 Materials 1.53 10.02 2.66 11.64 -0.11 Industrials 9 65 76 8.61 00 0.70 Con.Discretionary 6.23 8.15 -0,46 Consumer Staples 22.22 -0.29 -0.82 Im 1.98 4.22 Health Care 2 3.56 F12.94 -0.16 4.46 15.71 0.54 Financials 29.27 2.38 Infomation Tech. 14.65 48 -0.19 8.87 5.32 Telecom. Services 1.42 3.24 0.19 2.90 -2.92 -4.32 0.25 Utilities 6.46 -0.08 Manning and Napier ❑ Russell 1000 Value 76 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 OM Mid Cap Equity Comp R Mid Cap Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/88 Mid Cap Equity Comp 11.51 27.84 31.81 21.01 16.25 1 1.13 12.85 R Mid Cap 7.70 24.33 27.91 17.52 12.97 10.78 11.83 Asset Growth(8000) Beginning Market Value 94,900 87,995 85,344 71,950 47,267 71,622 15,585 Net Contributions&Withdrawals -8,001 -14,004 -14,006 -23,014 -23,015 -23,015 -23,015 Gain/Loss+Income 10,839 23,746 26,399 1 48,802 73,485 49,130 105,167 Ending Market Value 97,737 97,737 97,737 97,737 97,737 97,737 97,737 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Regeneron Pharmaceut Health Care 2.63 Energy 6.63 Brunswick Corp Consumer Discretionary 2.15 Materials 3.11 Allstate Corp Financials 2.08 Industrials 19.84 Computer Sciences Co Information Technology 2.02 Consumer Discretionary 18.61 Lincoln Natl Corp In Financials 2.00 Consumer Staples 0.45 Duke Realty Corp. Financials 1.94 Health Care 14.06 Ihs Inc Industrials 1.77 Financials 16.39 Discover Finl Svcs Financials 1.71 Information Technology 16.43 Sonoco Prods Co Materials 1.64 Telecom Services 0.00 Transdigm Group Inc Industrials 1.61 Utilities 4.49 Holdings and allocations only include SMA accounts. 77 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 9/30/13 Asset Allocation($000) F]Cash&Equiv $2,596 2.66% Domestic Equity $95,141 97.34% Risk/Return Analysis Periods from 3/88 to 9/13 Alpha 0.11 Beta 1.14 R-Squared 0.83 14.0 13.0 12.0 11.0 10.0 9.0 N 8.0 7.0 6.0 5.0 4.0 3.0 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Mid Cap Equity Comp 12.85 23.12 0.39 0.13 1 R Mid Cap 11.83 18.32 0.44 T 91-Day Treasury Bill 3.76 1.25 0.00 Holdings and allocations only include SMA accounts. 78 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 50% 45% 40% 35% ___ 30% ---- 25% 20% 15% -- ----ol 10% ---- 5% -- 0% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 14.67 44.58 37.36 25.14 20.39 17.52 10.62 12.10 11.45 12.37 13.56 1st Qt 9.42 35.02 32.29 19.09 18.36 14.38 8.17 10.60 10.94 12.08 13.32 Median 8.10 29.33 29.22 17.56 17.55 13.11 6.71 9.05 8.71 10.18 11.73 3rd Qt 7.52 27.54 27.73 17.18 16.28 11.18 5.80 7.58 8.14 9.71 10.88 Low 5.41 23.58 23.68 15.00 14.55 10.42 3.27 5.67 7.04 8.98 9.89 M Mid Cap Equity Comp Net Ret 11.51 31.81 30.84 21.01 20.74 16.25 8.53 10.43 10.33 11.16 11.13 Rank 7 36 32 7 2 9 22 28 31 32 64 1 R Mid Cap Net Ret 7.70 27.91 27.96 17.52 17.53 12.97 6.12 7.73 7.96 9.74 10.78 Rank 59 60 71 56 51 52 62 67 81 73 84 79 City of Clearwater Employees Pension Fund Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 80% 70% 60% 50% 40% -- 30% ---- ---- 20% -- ---- ---- 10% ---- --- 0% --- ---- -10% ---- -20% -30% -40% _ -50% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 34.60 23.86 6.60 31.40 63.14 -26.24 16.25 23.69 15.60 26.82 70.37 1st Qt 28.72 19.95 1.74 27.04 40.53 -31.76 9.90 19.78 12.73 23.35 43.85 Median 24.71 17.83 -1.76 25.74 37.28 -36.45 6.87 15.48 11.23 19.09 36.45 3rd Qt 22.89 14.49 -4.27 21.32 32.66 -39.20 3.01 10.94 8.36 16.65 35.22 Low 20.26 11.39 -5.12 17.95 19.11 -43.90 -5.27 10.06 3.18 13.80 32.49 M Mid Cap Equity Comp Net Ret 27.84 22.00 -0.10 28.03 45.33 -41.79 10.26 12.53 7.85 14.48 38.95 Rank 31 15 32 17 16 92 23 62 75 94 41 1 R Mid Cap Net Ret 24.33 17.26 -1.56 25.49 40.47 -41.46 5.59 15.27 12.65 20.23 40.08 Rank 51 63 40 52 25 90 61 53 28 37 40 80 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 5 5 31 32 Positive Periods 4 4 10 10 15 15 71 70 Up Market Capture 1.14 1.11 1.05 1.16 Down Market Capture 0.93 0.92 1.16 Batting Average 0.50 0.67 0.70 0.57 Worst Quarter 1.61 2.21 -17,17 -18,90 -26,78 -27,28 -26,78 -27,28 Best Quarter 12.83 12.95 17.31 13.08 23.05 20.80 49.24 20.80 Worst 4 Quarters 31.81 27.91 -0,16 -1.67 --0.10 -3,56 -41.79 -41,46 Best 4 Quarters 31.81 27.91 31.81 28.02 65.80 67.72 77.74 67.72 Standard Deviation 11.44 9.97 18.86 18.59 24.55 24.97 23.12 18.32 Beta 1.10 1.00 0.97 1.14 Alpha 0.22 0.78 0.81 0.11 R-Squared 0.92 0.96 0.98 0.83 Sharpe Ratio 2.77 2.79 1.11 0.94 0.66 0.51 0.39 0.44 Treynor Ratio 28.95 20.95 16.53 7.94 Tracking Error 4.03 3.74 3.71 9.97 Information Ratio 0.82 0.81 0.75 0.13 81 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios 3 Years Ending 9/30/13 21.9 o,- 21.0 • 20.1 19.2 .'• • • 0 18.3 � 17.4 Median 7� . • • Return N 16.5 15.6 t • • 14.8 • • 13.9 ' 13.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 21.01 7 18.86 23 1 R Mid Cap 17.52 56 18.59 18 Median 17.56 19.74 5 Years Ending 9/30/13 18.0 1 17.0 16.0 15.0 . • 0 14.0 13.0 Median 7� ' • Return N 12.0 •. 11.0 • • 10.0 + •• • • 9.0 8.0 18.0 19.4 20.8 22.2 23.6 25.0 26.4 27.8 29.2 30.6 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 16.25 9 24.55 39 1 R Mid Cap 12.97 52 24.97 56 Median 13.11 24.76 82 City of Clearwater Employees Pension Fund Artisan Partners as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan Partners R Mid Cap G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 7/31/01 Artisan Partners 16.16 31.04 33.29 21.84 18.27 13.51 10.43 R Mid Cap G 9.34 25.43 27.55 17.65 13.92 10.16 7.43 Asset Growth(5000) Beginning Market Value 48,692 43,165 42,437 35,810 20,790 28,181 29,914 Net Contributions&Withdrawals -8,001 -8,002 -8,003 -13,009 -13,009 -13,009 -13,009 Gain/Loss+Income 7,757 13,286 14,014 25,648 40,668 33,277 31,544 Ending Market Value 48,449 48,449 48,449 48,449 48,449 48,449 48,449 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Regeneron Pharmaceut Health Care 5.32 Energy 5.77 Ihs Inc Industrials 3.57 Materials 0.00 Discover Finl Svcs Financials 3.46 Industrials 17.20 Linkedin Corp Information Technology 3.08 Consumer Discretionary 20.88 Cemer Corp Health Care 2.85 Consumer Staples 0.00 Borg-Warner Automoti Consumer Discretionary 2.84 Health Care 24.17 Applied Materials In Information Technology 2.52 Financials 4.90 Verisk Analytics Inc Industrials 2.50 Information Technology 27.08 Cigna Corp Health Care 2.47 Telecom Services 0.00 Trimble Navigation L Information Technology 2.46 Utilities 0.00 83 City of Clearwater Employees Pension Fund Artisan Partners as of 9/30/13 Asset Allocation($000) Cash&Equiv $1,375 2.84% Domestic Equity $47,073 97.16% Risk/Return Analysis Periods from 7/01 to 9/13 Alpha 0.72 Beta 0.94 R-Squared 0.94 11.0 10.0 r 9.0 8.0 7.0 7� 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio r Artisan Partners 10.43 19.62 0.44 0.40 1 R Mid Cap G 7.43 19.53 0.29 T 91-Day Treasury Bill 1.73 0.52 0.00 84 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 40% 35% 30% ---- ---- 25% ___ 20% ---- ---- 15% r ---- "" - ----- t5 0 10% -,''-- 5% ! �--- 0% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 14.50 34.10 36.39 23.28 23.07 18.27 11.73 13.54 12.96 14.17 13.79 1st Qt 11.04 30.66 30.95 21.35 20.97 16.08 9.92 12.24 12.45 13.56 13.57 Median 9.63 28.35 28.02 17.96 18.69 13.82 7.43 9.66 9.34 11.66 12.23 3rd Qt 7.74 24.96 26.24 16.41 17.13 12.76 5.84 8.55 8.74 10.57 11.00 Low 5.12 19.60 21.87 10.49 14.87 10.16 4.23 6.45 6.80 9.89 10.46 r Artisan Partners Net Ret 16.16 33.29 29.60 21.84 22.15 18.27 10.51 13.23 12.66 13.39 13.51 Rank 2 11 39 18 8 5 15 11 19 29 38 1 R Mid Cap G Net Ret 9.34 27.55 27.11 17.65 17.81 13.92 6.33 8.34 8.18 9.78 10.16 Rank 54 56 58 51 66 45 57 77 84 99 100 85 City of Clearwater Employees Pension Fund Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% _ 40% 30% ---- 20% -- -- 10% - 1 ---- 0% _ -10% ---- -20% -30% -40% _ -50% -60% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 32.42 22.48 7.39 35.50 57.46 -32.14 24.65 21.58 17.11 21.82 50.51 1st Qt 26.91 20.02 0.54 30.01 50.16 -39.59 22.31 14.95 13.14 19.30 45.68 Median 25.08 17.00 -2.08 26.81 40.15 -42.95 17.83 13.32 12.36 15.05 37.59 3rd Qt 22.68 14.84 -5.90 25.13 34.18 -46.19 9.21 10.93 10.12 12.51 33.30 Low 18.12 4.01 -11.47 17.96 24.89 -52.96 4.82 7.24 6.96 9.09 21.93 r Artisan Partners Net Ret 31.04 20.82 0.07 33.15 51.38 -42.87 22.31 10.94 10.19 16.07 33.84 Rank 9 13 31 14 19 47 25 72 71 45 66 1 R Mid Cap G Net Ret 25.43 15.80 -1.66 26.39 46.30 -44.32 11.41 10.64 12.10 15.48 42.72 Rank 47 61 45 59 29 58 67 77 53 45 29 86 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Mideap Growth Portfolios 24% 22% 20% ---- 18% __________ 16% _____ __________ 14% '. ___1______ ___1___ 1 12% 10% 8 Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar]3 Dee 12 Sep 12 High 23.26 23.59 19.22 17.47 19.42 1 st Qt 2046. 21.39 1 6.57 1 5.70 1 7.52 Median 17.60 19.43 15.02 13.98 15.87 3rd Qt 16.30 18.15 14.10 12.44 14.58 Low 14.32 16.12 11.33 9.46 11.66 Artisan Partners Net Ret 21.84 22.74 18.04 17.20 18.65 Rank 15 14 14 7 11 1 R Mid Cap G Net Ret 17.65 19.53 14.24 12.91 14.73 Rank 48 45 71 63 72 Artisan Partners Value Added Analysis - Net of Fee 22.0 20.0 1 8.0 16.0% 14.0 12.0% 1 O.O 8.0 6.0%. 6.2 4.0 25 2.0 i2 0.5 00 U.6 02 -0.1 -06 02 -2.0% 09: 8 2.2 4.0 -4.6 6.0 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R Mid Cap G - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 87 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 4 5 14 15 Positive Periods 4 4 10 10 16 15 34 33 Up Market Capture 1.21 1.11 1.07 1.04 Down Market Capture 0.88 0.88 0.90 Batting Average 0.75 0.67 0.55 0.46 Worst Quarter 1.72 1.69 -14.74 -19,33 -27,54 -27,36 -27,54 -27,36 Best Quarter 16.16 11.52 21.06 14.52 21.06 20.67 26.70 27.06 Worst 4 Quarters 33.29 27.55 0.07 -2,99 0.07 --2,99 -42,87 -44.32 Best 4 Quarters 33.29 27.55 33.29 27.55 58.59 62.98 58.59 62.98 Standard Deviation 13.01 9.63 19.53 19.16 24.54 24.49 21.39 22.05 Beta 1.12 0.96 0.97 0.94 Alpha 0.49 1.11 1.07 0.72 R-Squared 0.75 0.87 0.94 0.94 Sharpe Ratio 2.55 2.85 1.11 0.92 0.74 0.56 0.51 0.37 Treynor Ratio 29.66 22.75 18.63 11.49 Tracking Error 7.91 7.10 6.18 5.41 Information Ratio 0.61 0.48 0.60 0.40 88 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios 3 Years Ending 9/30/13 28.0 26.0 24.0 22.0 0 20.0 ' •. ' 18.0 Median � •' • 7� .� . , . • • . . • . Return N 16.0 • •' • • 14.0 • •• . 12.0 10.0 8.0 13.0 14.3 15.6 16.9 18.2 19.5 20.8 22.1 23.4 24.7 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 21.84 18 19.53 49 1 R Mid Cap G 17.65 51 19.16 42 Median 17.96 19.57 5 Years Ending 9/30/13 19.0 18.0 ' 17.0 'so 16.0 0 15.0 • 14.0 • •• Median • • 7�°� 13.0 .• y • Return 12.0 , • 11.0 10.0 • S' • 9.0 17.0 18.5 20.0 21.5 23.0 24.5 26.0 27.5 29.0 30.5 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 18.27 5 24.54 51 1 R Mid Cap G 13.92 45 24.49 51 Median 13.82 24.54 89 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 9/13 Portfolio R Mid Cap G EMEEMMEMMMMMMMEMMMMMEM Total Number Of Securities 68 494 Equity Market Value 47,073,197 Average Capitalization $(000) 12,779,913 11,400,565 Median Capitalization $(000) 8,654,211 5,911,298 Equity Segment Yield 0.43 1.10 Equity Segment P/E -Average 41.41 28.57 Equity Segment P/E - Median 26.66 22.35 Equity Segment Beta 1.14 1.07 Price/Book Ratio 5.49 4.67 Debt/Equity Ratio 22.18 51.60 Five Year Earnings Growth 12.73 11.90 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Regeneron Pharmaceut 2,502,960 5.32 39.13 Ihs Inc 1,678,446 3.57 9.39 Discover Finl Svcs 1,627,388 3.46 6.50 Linkedin Corp 1,451,754 3.08 38.00 Cemer Corp 1,340,656 2.85 9.38 Borg-Warner Automoti 1,338,348 2.84 17.99 Applied Materials In 1,183,950 2.52 18.40 Verisk Analytics Inc 1,175,776 2.50 8.81 Cigna Corp 1,160,586 2.47 6.03 Trimble Navigation L 1,158,690 2.46 14.23 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Tesla Mtrs Inc 80.04 Urban Outfitters Inc -8.58 Ctrip Com Intl Ltd 79.07 Ipg Photonics Corp -7.28 Incyte Pharmaceutica 73.41 Cree Inc -5.75 Melco Pbl Entmnt Ltd 42.35 Vertex Pharmaceutica -5.07 Isis Pharmaceuticals 39.71 Ralph Lauren Corp -4.95 Regeneron Pharmaceut 39.13 Red Hat Inc -3.51 Linkedin Corp 38.00 Owens Corning New -2.81 Pandora Media Inc 36.58 Cabelas Inc -2.67 Salesforce Com Inc 35.96 Williams Sonoma Inc 1.09 Concur Technologies 35.78 Lpl Finl Hldgs Inc 1.95 90 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 9/13 Portfolio R Mid Cap G EMEMMEMEEMEMMMMMMMME Total Number Of Securities 68 494 Equity Market Value 47,073,197 Average Capitalization $(000) 12,779,913 11,400,565 Median Capitalization $(000) 8,654,211 5,911,298 Equity Segment Yield 0.43 1.10 Equity Segment P/E -Average 41.41 28.57 Equity Segment P/E - Median 26.66 22.35 Equity Segment Beta 1.14 1.07 Price/Book Ratio 5.49 4.67 Debt/Equity Ratio 22.18 51.60 Five Year Earnings Growth 12.73 11.90 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Regeneron Pharmaceut 2,502,960 5.32 39.13 Ctrip Com Intl Ltd 800,491 1.70 79.07 Linkedin Corp 1,451,754 3.08 38.00 Concur Technologies 1,082,900 2.30 35.78 Isis Pharmaceuticals 948,223 2.01 39.71 Incyte Pharmaceutica 484,505 1.03 73.41 Arm Hldgs Plc 928,716 1.97 33.27 Salesforce Com Inc 840,942 1.79 35.96 Rockwell Automation 919,684 1.95 29.30 Athenahealth Inc 857,624 1.82 28.14 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Ipg Photonics Corp 670,089 1.42 -7.28 Ralph Lauren Corp 691,866 1.47 -4.95 Cree Inc 499,577 1.06 -5.75 Urban Outfitters Inc 316,222 0.67 -8.58 Red Hat Inc 618,276 1.31 -3.51 Owens Corning New 571,713 1.21 -2.81 Vertex Pharmaceutica 189,550 0.40 -5.07 Cabelas Inc 340,362 0.72 -2.67 Ariad Pharmaceutical 81,089 0.17 5.20 Lpl Finl Hldgs Inc 226,029 0.48 1.95 91 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 6.35 6.22 10.32 11.20 -0,06 0.00 -0,05 Materials 0.00 5.87 7.29 0.00 0.12 0.12 Industrials 16.95 14.50 11.76 10.24 0.26 0.02 0.28 Consumer Discretionary 20.72 24.77 16.05 9.54 1.35 - ,()1 1.34 Consumer Staples 0.54 8.43 -5,85 3.98 -0,05 0.42 0.37 Health Care 23.90 12.98 20.45 11.23 2.20 0.21 2.41 Financials 5.13 8.51 5.33 4.53 0.04 0.16 0.20 Information Technology 26.41 16.39 18.22 12.28 1.57 0.30 1.86 Telecom. Services 0.00 1.63 4.61 0.00 0.08 0.08 Utilities 0.00 0.69 13.37 0.00 -0,03 -0,03 100.00 100.00 15.91 9.33 5.31 1.27 6.58 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 1.11% [Actual Return 17.03%] - [Buy Hold Return 15.91% 92 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 9/13 %Allocation %Return %Variance Energy 6.35 10.32 6.22; 1120 -0.05 Materials 5.87 7.29 0.12 Industrials 1450 5' 10.24 0. 28 Con.Discretionary X 2 9.5416.05 1.34 Consumer Staples -198,43 3.98-5.85 0.37 Health Care 12.98 23.90 20.45 2.41 1123 Financials 13 5.33 0.20 8.51 4.53 Infomation Tech. 26.41 BEIM= 18.22 1.86 16.39 12.28 Telecom. Services 0.00 0.08 1.63 4.61 0.00 -0.03 Utilities 0.69 13.37 Artisan Partners ❑ R Mid Cap G 93 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital Mgmt R Mid Cap V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/28/07 Wedge Capital Mgmt 6.67 24.20 29.77 19.98 13.89 7.90 R Mid Cap V 5.89 22.94 27.76 17.26 11.86 5.33 Asset Growth(5000) Beginning Market Value 46,208 44,831 42,907 36,140 26,138 30,365 Net Contributions&Withdrawals -1 -6,002 -6,002 -10,005 -10,005 -10,005 Gain/Loss+Income 3,081 10,460 12,384 23,154 33,156 28,928 Ending Market Value 49,289 49,289 49,289 49,289 49,289 49,289 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Brunswick Corp Consumer Discretionary 4.26 Energy 7.47 Allstate Corp Financials 4.13 Materials 6.16 Computer Sciences Co Information Technology 4.01 Industrials 22.44 Lincoln Natl Corp In Financials 3.95 Consumer Discretionary 16.38 Duke Realty Corp. Financials 3.84 Consumer Staples 0.89 Sonoco Prods Co Materials 3.26 Health Care 4.13 Transdigm Group Inc Industrials 3.19 Financials 27.66 URS Corp New Industrials 3.18 Information Technology 5.99 Carlisle Corp Industrials 3.11 Telecom Services 0.00 Huntington Ingalls I Industrials 3.06 Utilities 8.89 94 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 9/30/13 Asset Allocation($000)?; FCash&Equiv $1,221 2.48% Domestic Equity $48,068 97.32% Risk/Return Analysis Periods from 2/07 to 9/13 Alpha 0.63 Beta 0.99 R-Squared 0.97 9.0 8.0 7.0 6.0 5.0 N 4.0 3.0 2.0 1.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio w Wedge Capital Mgmt 7.90 20.95 0.33 0.58 1 R Mid Cap V 5.33 21.03 0.20 T 91-Day Treasury Bill 1.02 0.51 0.00 95 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 50% 45% 40% 35% 30% ------ 25% 20% 15% - ---- - ---- 10% - ---- 5% 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Qtr Year Years Years Years Years Years High 11.36 42.54 46.41 24.38 22.99 21.78 10.95 1st Qt 10.22 29.80 31.80 19.46 18.41 13.72 7.47 Median 8.48 28.05 29.89 17.67 17.44 12.63 6.57 3rd Qt 4.95 25.23 27.75 16.51 16.98 11.69 6.38 Low -2.05 5.56 19.26 12.21 12.65 6.89 3.62 w Wedge Capital Mgmt Net Ret 6.67 29.77 31.83 19.98 19.21 13.89 8.16 Rank 66 28 18 21 16 11 16 1 R Mid Cap V Net Ret 5.89 27.76 28.50 17.26 17.18 11.86 5.67 Rank 69 53 71 54 67 74 88 96 City of Clearwater Employees Pension Fund Midcap Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% -------- 40% 30% - --1----- 20% -- ----- 1 10% -------- 0% -10% t- -20% -30% -40% ------ -50% 9/30/13 YTD 2012 2011 2010 2009 2008 High 34.96 23.16 9.38 35.88 61.50 -31.72 1st Qt 25.13 22.81 6.60 30.03 54.67 -34.45 Median 22.50 15.69 -2.82 21.25 39.62 -35.70 3rd Qt 21.38 14.76 -6.45 19.29 32.16 -43.12 Low 3.00 4.51 -11.08 14.62 30.37 -44.52 w Wedge Capital Mgmt Net Ret 24.20 23.16 -0.33 23.30 38.51 -34.89 Rank 44 6 42 33 66 38 1 R Mid Cap V Net Ret 22.94 18.48 -1.38 24.76 34.20 -38.45 Rank 47 36 46 25 69 53 97 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Mideap Value Portfolios 22% 21% 20% 19% ` ----- 1 18% 17% 1 16% ---- 14% ! ----------- ___ 13% 12% _________ 1 1 10 Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 an 13 Mar 13 Dee 12 Sep 12 High 20.85 20.96 18.80 18.32 19.65 1 st Qt 19.25 19.22 15.55 14.01 15.07 Median 17.57 18.30 14.38 13.42 14.53 3rd Qt 16.51 17.76 13.34 12.11 13.81 Low 12.21 15.56 11.74 10.31 12.23 - Wedge Capital Mgmt Net Ret 19.98 20.71 18.65 14.81 15.89 Rank 16 13 9 21 21 1 R Mid Cap V Net Ret 17.26 19.52 14.95 13.39 13.85 Rank 53 21 35 50 70 Wedge Capital Mgmt Value Added Analysis - Net of Fee 12.0% 1 O.O 6.0,E 4.0 2.0%. 2.1 .O 2-0', 1.5 1.1 OS 0.7 02 IU 3:1 -4.0 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R Mid Cap V - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 98 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 4 3 7 6 11 10 Positive Periods 3 4 8 9 13 14 15 16 Up Market Capture 1.07 1.10 1.03 1.05 Down Market Capture 0.97 0.95 0.92 Batting Average 0.75 0.75 0.65 0.69 Worst Quarter -0,05 1.66 -19,63 -18,47 -26,40 -27,19 -26,40 -27.19 Best Quarter 16.49 14.21 16.49 14.21 25.65 23.62 25.65 23.62 Worst 4 Quarters 29.77 27.76 -0,63 -2,36 -3,12 -7.11 -39,75 -42,51 Best 4 Quarters 29.77 27.76 33.94 29.25 73.15 72.41 73.15 72.41 Standard Deviation 13.96 10.95 19.77 18.25 26.32 25.93 24.06 23.85 Beta 1.21 1.08 1.00 0.99 Alpha -0,85 0.32 0.48 0.63 R-Squared 0.99 0.99 0.97 0.97 Sharpe Ratio 2.12 2.53 1.01 0.94 0.52 0.45 0.28 0.18 Treynor Ratio 24.57 18.42 13.73 6.86 Tracking Error 3.29 2.49 4.58 4.16 Information Ratio 0.57 1.07 0.40 0.58 99 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Value Portfolios 3 Years Ending 9/30/13 26.0 24.0 22.0 20.0 0 18.0 Median 7� • ` Return N 16.0 ' • 14.0 12.0 • • 10.01 1 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Wedge Capital Mgmt 19.98 21 19.77 31 1 R Mid Cap V 17.26 54 18.25 22 Median 17.67 21.23 5 Years Ending 9/30/13 21.9 20.1 18.4 16.6 0 14.8 13.0 Median ' 1 Return 11.2 ' 9.4 • 7.6 • . r 5.8 4.0 14.0 16.2 18.4 20.6 22.8 25.0 27.2 29.4 31.6 33.8 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Wedge Capital Mgmt 13.89 11 26.32 85 1 R Mid Cap V 11.86 74 25.93 83 Median 12.63 24.98 100 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 9/13 Portfolio R Mid Cap V EMEEMMEMMMMMMEMEMMMMMMMM Total Number Of Securities 43 526 Equity Market Value 48,067,871 Average Capitalization $(000) 7,596,440 9,758,288 Median Capitalization $(000) 4,464,655 4,891,701 Equity Segment Yield 2.14 2.18 Equity Segment P/E -Average 17.96 20.58 Equity Segment P/E - Median 17.54 17.86 Equity Segment Beta 1.27 1.20 Price/Book Ratio 1.77 1.58 Debt/Equity Ratio 68.30 61.21 Five Year Earnings Growth 3.73 2.69 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Brunswick Corp 2,042,195 4.26 24.91 Allstate Corp 1,981,560 4.13 5.60 Computer Sciences Co 1,921,675 4.01 18.68 Lincoln Natl Corp In 1,896,268 3.95 15.49 Duke Realty Corp. 1,844,725 3.84 0.14 Sonoco Prods Co 1,562,584 3.26 13.54 Transdigm Group Inc 1,530,693 3.19 2.22 URS Corp New 1,526,500 3.18 14.30 Carlisle Corp 1,490,148 3.11 13.17 Huntington Ingalls I 1,469,320 3.06 19.52 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Energen Corp 46.49 Cbl &Assoc Pptys In -9.76 Brunswick Corp 24.91 Pg&E Corp -9.53 Huntington Ingalls I 19.52 Darden Restaurants I -7.33 Dana Holding Corp 18.87 Hillshire Brands Co -6.57 Computer Sciences Co 18.68 Mfa Mtg Invts Inc -6.03 Hca Holdings Inc 18.55 Nordstrom Inc -5.74 Phh Corp 16.49 Werner Enterprises I -3.48 Dover Corp 16.18 Epr Pptys -1.51 Northrop Corp 15.80 Republic Svcs Inc -0.95 Delphi Automotive PI 15.60 Great Plains Energy -0.54 101 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 9/13 Portfolio R Mid Cap V EMEEMMEMMMMMMEMEMMMMMM Total Number Of Securities 43 526 Equity Market Value 48,067,871 Average Capitalization $(000) 7,596,440 9,758,288 Median Capitalization $(000) 4,464,655 4,891,701 Equity Segment Yield 2.14 2.18 Equity Segment P/E -Average 17.96 20.58 Equity Segment P/E - Median 17.54 17.86 Equity Segment Beta 1.27 1.20 Price/Book Ratio 1.77 1.58 Debt/Equity Ratio 68.30 61.21 Five Year Earnings Growth 3.73 2.69 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Brunswick Corp 2,042,195 4.26 24.91 Computer Sciences Co 1,921,675 4.01 18.68 Lincoln Natl Corp In 1,896,268 3.95 15.49 Huntington Ingalls I 1,469,320 3.06 19.52 Energen Corp 565,286 1.18 46.49 URS Corp New 1,526,500 3.18 14.30 Sonoco Prods Co 1,562,584 3.26 13.54 Steelcase Inc 1,337,910 2.79 14.69 Carlisle Corp 1,490,148 3.11 13.17 Hca Holdings Inc 1,017,450 2.12 18.55 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Pg&E Corp 1,444,476 3.01 -9.53 Darden Restaurants I 1,379,442 2.88 -7.33 Cbl &Assoc Pptys In 953,090 1.99 -9.76 Nordstrom Inc 1,410,620 2.94 -5.74 Werner Enterprises I 1,425,463 2.97 -3.48 Hillshire Brands Co 429,315 0.89 -6.57 Mfa Mtg Invts Inc 385,165 0.80 -6.03 Epr Pptys 409,416 0.85 -1.51 Pinnacle West Cap Co 1,456,084 3.03 -0.41 Great Plains Energy 896,880 1.87 -0.54 102 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 7.97 6.91 12.97 11.86 0.09 0.06 0.15 Materials 5.89 5.03 6.87 10.25 -0,20 0.04 -0,16 Industrials 19.53 10.95 10.18 11.42 -0,24 0.47 0.23 Consumer Discretionary 14.39 8.61 8.75 8.43 0.05 0.15 0.19 Consumer Staples 2.87 3.03 1.03 4.98 -0,11 0.00 -0,11 Health Care 3.98 7.99 9.50 9.96 -0,02 -0,16 -0,18 Financials 29.26 33.76 3.84 1.34 0.73 0.21 0.94 Information Technology 7.02 10.09 11.64 10.48 0.08 -0,14 -0,06 Telecom. Services 0.00 0.60 12.16 0.00 -0,04 -0,04 Utilities 9.10 13.03 -3,46 0.49 -0,36 0.21 - ,15 100.00 100.00 6.72 5.91 0.02 0.80 0.81 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 0.21% [Actual Return 6.92%] - [Buy Hold Return 6.72%] 103 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 9/13 %Allocation %Return %Variance Energy 7.97 12.97 6.91 11.86 0.15 Materials 5.0 9 10.25 -0.16 Industrials 10.95.53 10.1142 0.23 Con.Discretionary 8 614.39 8:43 0.19 Consumer Staples 2.87 3 -0.11 3.03 4.98 Health Care .98 9.50 -0.18 7.99 9.96 Financials 9,26 3.84 0.94 33.76 1.34 Infomation Tech. 02 MEM11 11.64 -0.06 !!�-10.09 10.48 Telecom. Services 0.00 -0.04 0..60 12.16 10 -3.46 -0.15 Utilities 13.03 10.49 Wedge Capital Mgmt ❑ R Mid Cap V 104 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 IL Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 8/31/03 Small Cap Equity Comp 11.27 30.48 33.21 22.21 14.98 10.92 10.44 R2000 10.21 27.69 30.05 18.28 11.15 9.64 9.35 Asset Growth(5000) Beginning Market Value 57,515 49,049 48,047 36,534 63,331 28,972 29,988 Net Contributions&Withdrawals -1 -2 -3 -2,009 -41,009 -41,009 -41,009 Gain/Loss+Income 6,484 14,951 15,954 29,473 41,677 76,036 75,019 Ending Market Value 63,999 63,999 63,999 63,999 63,999 63,999 63,999 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Ultimate Software Gr Information Technology 2.10 Energy 3.23 National Instrs Corp Information Technology 2.07 Materials 2.32 Portfolio Recovery A Financials 2.01 Industrials 18.08 Costar Group Inc Information Technology 1.94 Consumer Discretionary 13.76 Grand Canyon Ed Inc Consumer Discretionary 1.91 Consumer Staples 4.57 Maximus Inc Information Technology 1.86 Health Care 15.23 Cepheid Inc Health Care 1.55 Financials 14.71 United Nat Foods Inc Consumer Staples 1.49 Information Technology 27.19 Rollins Inc Industrials 1.46 Telecom Services 0.24 Beacon Roofing Suppl Industrials 1.45 Utilities 0.67 Holdings and allocations only include SMA accounts. 105 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 9/30/13 Asset Allocation($000) Cash&Equiv $1,806 2.82% Domestic Equity $62,192 97.18% Risk/Return Analysis Periods from 8/03 to 9/13 Alpha 0.44 Beta 0.91 R-Squared 0.96 11.0 10.0 9.0 8.0 7.0 7� 6.0 5.0 4.0 3.0 2.0 _ 1.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio S Small Cap Equity Comp 10.44 18.86 0.46 0.18 1 R2000 9.35 19.76 0.39 T 91-Day Treasury Bill 1.69 0.56 0.00 Holdings and allocations only include SMA accounts. 106 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 45% 40% 35% 30% 25% 20% ---- 15% ---- ---- 10% ------ 1--- --- `� --- 1-- 5% ---- 0%1 V Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 11.92 39.37 36.90 23.27 21.49 17.94 11.43 12.86 12.33 12.92 14.97 1st Qt 10.31 33.50 33.40 20.09 19.05 14.14 8.18 9.45 9.56 10.68 12.12 Median 9.37 31.01 30.82 18.77 17.72 12.74 7.14 8.61 8.53 9.85 11.10 3rd Qt 8.20 28.03 28.53 17.51 16.16 11.19 6.42 7.33 7.54 8.93 10.65 Low 3.83 22.54 23.85 13.40 13.00 9.27 4.24 6.24 6.49 8.00 9.69 S Small Cap Equity Comp Net Ret 11.27 33.21 33.34 22.21 20.66 14.98 7.82 8.97 9.38 10.37 10.92 Rank 11 29 25 10 8 12 31 38 28 32 60 1 82000 Net Ret 10.21 30.05 30.98 18.28 17.03 11.15 6.40 7.23 7.56 8.67 9.64 Rank 32 60 47 63 67 76 75 77 73 87 96 107 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% --- 20% ---- ---- -- 10% 0% --- ----10% 00 - -- -20% -30% _ -40% --- -50% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 31.97 23.06 4.74 34.90 48.56 -21.59 10.45 24.68 12.11 28.24 1st Qt 28.72 18.48 -0.19 29.58 35.72 -30.21 3.83 19.19 10.21 23.66 Median 27.15 16.63 -2.87 26.85 28.97 -33.24 0.33 17.34 8.27 20.46 3rd Qt 22.94 14.95 -4.41 24.53 25.98 -36.39 -2.52 15.26 4.82 18.24 Low 18.75 10.79 -10.19 20.43 21.89 -41.40 -8.35 10.88 2.60 12.47 S Small Cap Equity Comp Net Ret 30.48 17.61 2.07 29.27 33.51 -38.63 3.27 17.40 7.21 15.69 Rank 11 37 14 27 34 86 29 48 61 85 1 82000 Net Ret 27.69 16.34 -4.17 26.85 27.19 -33.80 -1.55 18.35 4.56 18.32 Rank 39 60 73 50 68 60 66 32 81 70 108 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 6 6 12 13 Positive Periods 4 4 9 9 14 14 28 27 Up Market Capture 1.11 1.03 1.00 0.98 Down Market Capture 0.77 0.85 0.89 Batting Average 0.75 0.75 0.75 0.63 Worst Quarter 2.09 1.85 -18,74 -21,86 -25,65 -26.12 -25,65 -26.12 Best Quarter 11.91 12.39 16.53 16.25 20.74 20.68 20.74 20.68 Worst 4 Quarters 33.21 30.05 2.07 -4.17 -6.17 --9,54 -38,63 -37,50 Best 4 Quarters 33.21 30.05 33.48 31.91 57.55 62.77 57.55 62.77 Standard Deviation 9.69 10.40 19.31 21.17 24.00 26.30 19.30 20.72 Beta 0.98 0.91 0.90 0.91 Alpha 0.76 1.17 1.06 0.44 R-Squared 0.98 0.99 0.98 0.96 Sharpe Ratio 3.42 2.88 1.14 0.86 0.62 0.42 0.48 0.38 Treynor Ratio 33.74 24.20 16.39 10.09 Tracking Error 1.90 2.55 4.31 4.40 Information Ratio 1.33 1.19 0.66 0.18 109 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 9/30/13 24.0 23.0 v • 22.0 ' • 21.0 , • 0 20.0 ' • a 19.0 ; • • M Wian •' « ' 18.0 �•• , • Return N ' ••' 1 17.0 • , •1 • 16.0 • „ 15.0 , 14.0 ' • 15.0 16.2 17.4 18.6 19.8 21.0 22.2 23.4 24.6 25.8 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 22.21 10 19.31 14 1 R2000 18.28 63 21.17 60 Median 18.77 20.88 5 Years Ending 9/30/13 18.0 17.0 ro • 16.0 ' • • 15.0 S • , 0 14.0 1 •' ' .. •' •: , ' '. • �. 13.0 ,�• • + ' • • • Median 12.0 ' • , • , • Return N ,. 11.0 •%. 10.0 • 9.0 • 8.0 19.0 20.4 21.8 23.2 24.6 26.0 27.4 28.8 30.2 31.6 33.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 14.98 12 24.00 17 1 R2000 11.15 76 26.30 59 Median 12.74 25.94 110 City of Clearwater Employees Pension Fund Riverbridge Partners as of 9/30/13 Portfolio Performance 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Riverbridge Partners R2000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/10 Riverbridge Partners 13.10 33.15 34.86 23.94 23.94 R2000G 12.80 32.46 33.05 19.94 19.94 Asset Growth(5000) Beginning Market Value 28,407 24,129 23,824 16,876 16,876 Net Contributions&Withdrawals 0 -1 -1 -3 -3 Gain/Loss+Income 3,721 8,000 8,306 15,255 15,255 Ending Market Value 32,128 32,128 32,128 32,128 32,128 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Ultimate Software Gr Information Technology 4.19 Energy 0.00 Portfolio Recovery A Financials 4.00 Materials 0.00 Costar Group Inc Information Technology 3.86 Industrials 16.33 Grand Canyon Ed Inc Consumer Discretionary 3.80 Consumer Discretionary 12.62 Maximus Inc Information Technology 3.70 Consumer Staples 4.25 National Instrs Corp Information Technology 3.27 Health Care 22.35 Cepheid Inc Health Care 3.08 Financials 6.55 United Nat Foods Inc Consumer Staples 2.97 Information Technology 37.91 Rollins Inc Industrials 2.90 Telecom Services 0.00 Sps Comm Inc Information Technology 2.75 Utilities 0.00 111 City of Clearwater Employees Pension Fund Riverbridge Partners as of 9/30/13 Asset Allocation($000) JCash&Equiv $887 2.76% Domestic Equity $31,241 97.24% Risk/Return Analysis Periods from 9/10 to 9/13 Alpha 1.80 Beta 0.78 R-Squared 0.96 26.0 24.0 22.0 20.0 18.0 16.0 14.0 7� 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 j j -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio R Riverbridge Partners 23.94 14.51 1.64 0.38 1 R2000G 19.94 17.96 1.10 T 91-Day Treasury Bill 0.10 0.03 0.00 112 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 50% 45% 40% 35% ------- R1 R1 R 30% 25% ------ ------- 20% ------- R ------- 15% ` 1 ------ 10% ------ 5% Last Last 2 Last 3 9/13 Last Last 2 Last 3 Qtr Qtrs Qtrs YTD Year Years Years High 18.88 27.15 44.98 44.98 44.42 38.82 25.80 1st Qt 14.33 20.62 34.94 34.94 36.15 34.60 23.19 Median 12.44 15.92 30.74 30.74 33.10 32.10 20.20 3rd Qt 10.69 14.35 26.65 26.65 29.22 29.40 18.97 Low 7.98 10.13 22.28 22.28 23.60 22.70 15.32 R Riverbridge Partners Net Ret 13.10 18.63 33.15 33.15 34.86 33.23 23.94 Rank 39 33 36 36 35 39 18 1 R2000G Net Ret 12.80 17.01 32.46 32.46 33.05 32.11 19.94 Rank 43 40 38 38 50 49 56 113 City of Clearwater Employees Pension Fund Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 45% 40% 35% ------------ 30% 1 25% ------------ 20% 15% ---------- 10% ------------ 5% R 0% ------------ -5% ------------ -10 -15% 9/30/13 YTD 2012 2011 High 44.98 22.59 7.70 1st Qt 34.94 17.92 2.62 Median 30.74 14.68 -1.44 3rd Qt 26.65 11.95 -4.33 Low 22.28 6.59 -9.90 R Riverbridge Partners Net Ret 33.15 17.83 4.27 Rank 36 26 17 1 R2000G Net Ret 32.46 14.59 -2.92 Rank 38 52 65 114 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Small Growth Portfolios 26% 24% ? R ____ 22 20% _________ 16% 14% _______ 10 Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar]3 Dee 12 Sep 12 High 25.04 25.30 19.63 18.62 20.79 1 st Qt 23.1 1 22.91 1 7.95 1 6.83 1824 Median 20.25 21.02 15.85 14.54 16.08 3rd Qt 19.15 19.44 14.23 12.66 14.23 Low 17.37 16.95 11.77 10.97 12.48 R Riverbridge Partners Net Ret 23.94 Rank 16 1 R20000 Net Ret 19.94 Rank 56 Riverbridge Partners Value Added Analysis - Net of Fee 12.0% 1 O.O H 7.0 6.0%. 4.0 2.0 0. 1 1 OK 0..0 (13 MW 0.6 -0 9 -2.0% 4 -4.0% 3.3 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R2OOOG - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 115 City of Clearwater Employees Pension Fund Risk Measure Summary Riverbridge Partners Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 1 3 1 3 Positive Periods 4 4 11 9 11 9 Up Market Capture 1.05 0.92 0.92 Down Market Capture 0.51 0.51 Batting Average 0.75 0.50 0.50 Worst Quarter 1.28 0.45 -15,89 -22.26 -15,89 -22.26 Best Quarter 13.10 13.20 16.39 17.11 16.39 17.11 Worst 4 Quarters 34.86 33.05 4.27 -2,92 4.27 -2,92 Best 4 Quarters 34.86 33.05 34.86 33.05 34.86 33.05 Standard Deviation 11.47 12.89 17.30 22.05 17.30 22.05 Beta 0.94 0.78 0.78 Alpha 0.82 1.80 1.80 R-Squared 0.99 0.96 0.96 Sharpe Ratio 3.03 2.56 1.38 0.90 1.38 0.90 Treynor Ratio 37.18 30.74 30.74 Tracking Error 1.87 6.18 6.18 Information Ratio 0.71 0.38 0.38 116 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Growth Portfolios 3 Years Ending 9/30/13 29.9 28.1 26.3 24.5 22.7 • o • 20.9 � ' Median • ., + ' Return 19.1 s 17.4 . d • 15.6 13.8 • 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Riverbridge Partners 23.94 18 17.30 8 1 R2000G 19.94 56 22.05 57 Median 20.20 21.72 117 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 9/13 Portfolio R2000G EMEEMMEMEMEMMMMMEMMMMM Total Number Of Securities 46 1,149 Equity Market Value 31,240,635 Average Capitalization $(000) 2,643,837 1,844,680 Median Capitalization $(000) 1,955,690 820,422 Equity Segment Yield 0.35 0.59 Equity Segment P/E -Average 39.02 61.90 Equity Segment P/E - Median 30.55 18.43 Equity Segment Beta 0.98 1.27 Price/Book Ratio 4.29 3.86 Debt/Equity Ratio 13.51 35.40 Five Year Earnings Growth 5.23 9.72 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Ultimate Software Gr 1,307,438 4.19 25.67 Portfolio Recovery A 1,249,749 4.00 17.05 Costar Group Inc 1,204,683 3.86 30.08 Grand Canyon Ed Inc 1,185,602 3.80 24.98 Maximus Inc 1,155,726 3.70 21.08 National Instrs Corp 1,020,288 3.27 11.26 Cepheid Inc 963,078 3.08 13.42 United Nat Foods Inc 928,980 2.97 24.50 Rollins Inc 904,839 2.90 2.72 Sps Comm Inc 859,721 2.75 21.67 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Greenway Med Technol 67.34 Semtech Corp -14.39 Concur Technologies 35.78 Abaxis Inc -11.39 Power Integrations I 33.71 Sciquest Inc New -10.34 Financial Engines In 30.49 Innerworkings Inc -9.49 Costar Group Inc 30.08 Fresh Mkt Inc -4.85 Athenahealth Inc 28.14 Beacon Roofing Suppl -2.67 Ultimate Software Gr 25.67 Chemed Corp New -1.01 Grand Canyon Ed Inc 24.98 Ipc the Hospitalist -0.68 United Nat Foods Inc 24.50 Rollins Inc 2.72 Lkq Corp 23.73 Mobile Mini 2.75 118 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 9/13 Portfolio Russell 2000 Growth Total Number Of Securities 46 1,149 Equity Market Value 31,240,635 Average Capitalization $(000) 2,643,837 1,844,680 Median Capitalization $(000) 1,955,690 820,422 Equity Segment Yield 0.35 0.59 Equity Segment P/E -Average 39.02 61.90 Equity Segment P/E - Median 30.55 18.43 Equity Segment Beta 0.98 1.27 Price/Book Ratio 4.29 3.86 Debt/Equity Ratio 13.51 35.40 Five Year Earnings Growth 5.23 9.72 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Greenway Med Technol 576,548 1.85 67.34 Costar Group Inc 1,204,683 3.86 30.08 Ultimate Software Gr 1,307,438 4.19 25.67 Grand Canyon Ed Inc 1,185,602 3.80 24.98 Concur Technologies 812,286 2.60 35.78 Maximus Inc 1,155,726 3.70 21.08 Financial Engines In 796,139 2.55 30.49 Athenahealth Inc 831,678 2.66 28.14 United Nat Foods Inc 928,980 2.97 24.50 Portfolio Recovery A 1,249,749 4.00 17.05 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Semtech Corp 732,956 2.35 -14.39 Abaxis Inc 506,295 1.62 -11.39 Sciquest Inc New 447,673 1.43 -10.34 Innerworkings Inc 299,706 0.96 -9.49 Beacon Roofing Suppl 755,282 2.42 -2.67 Fresh Mkt Inc 397,830 1.27 -4.85 Chemed Corp New 801,873 2.57 -1.01 Ipc the Hospitalist 549,633 1.76 -0.68 Ebix Com Inc 169,050 0.54 7.34 Forward Air Corp 308,678 0.99 5.69 119 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 0.00 4.11 16.72 0.00 -0,16 -0,16 Materials 0.00 5.09 11.53 0.00 0.07 0.07 Industrials 17.58 15.46 4.01 12.59 -1,51 - , 1 -1,51 Consumer Discretionary 13.32 17.66 18.17 7.43 1.43 0.24 1.67 Consumer Staples 4.19 4.99 13.96 14.61 -0,03 - , 1 -0,04 Health Care 22.16 20.14 10.97 15.62 -1,03 0.06 -0,98 Financials 6.05 7.44 21.94 8.56 0.81 0.06 0.87 Information Technology 36.69 24.13 17.06 15.44 0.59 0.32 0.91 Telecom. Services 0.00 0.86 14.08 0.00 -0,01 -0,01 Utilities 0.00 0.13 2.32 0.00 0.01 0.01 100.00 100.00 13.73 12.89 0.27 0.57 0.84 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 -0.23% [Actual Return 13.49%] - [Buy Hold Return 13.73% 120 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 9/13 %Allocation %Return %Variance Energy 00 3.4.11 16.72 -0.16 Materials Q0 5.09 11.53 0.07 Industrials 17,58 12.59 -1.51 IN Con.Discretionary 3.3 66 718 17 1.67 Consumer Staples 4.19 .96 -0.04 4.99 .61 Health Care 22.16 97 -0.98 20.14 15.62 Financials 6.05 21.94 0.87 7.44 �8,56 36.69 17.06 0.91 Infomation Tech. 24.13 15.44' Telecom. Services 0.00 -0.01 0:86 14.08 Utilities 0.00 0.01 0.13 2.32 Riverbridge Partners ❑ R2000G 121 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Atlanta Capital Mgmt Russell 2000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 8/31/03 Atlanta Capital Mgmt 10.25 28.63 31.87 22.31 16.28 13.57 13.06 Russell 2000 10.21 26.82 30.91 17.74 9.79 9.62 9.41 Asset Growth(5000) Beginning Market Value 14,258 12,220 11,920 10,038 17,614 14,487 14,990 Net Contributions&Withdrawals 0 -1 -1 -2,002 -12,002 -12,002 -12,002 Gain/Loss+Income 1,461 3,499 3,799 71683 10,107 13,234 12,731 Ending Market Value 15,719 15,719 15,719 15,719 15,719 15,719 15,719 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Kirby Expl Co. Industrials 3.52 Energy 3.29 Morningstar Inc Consumer Discretionary 3.42 Materials 4.21 Manhattan Assocs Inc Information Technology 3.37 Industrials 28.34 Dril-Quip Inc Energy 3.29 Consumer Discretionary 17.18 Henry Jack&Assoc I Information Technology 3.25 Consumer Staples 3.77 Blackbaud Inc Information Technology 2.51 Health Care 7.21 Moog Inc'a' Industrials 2.44 Financials 16.24 Bio Rad Labs Inc Health Care 2.40 Information Technology 19.75 Fair Isaac Corp Information Technology 2.21 Telecom Services 0.00 Sally Beauty Hldgs I Consumer Discretionary 2.12 Utilities 0.00 122 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 9/30/13 Asset Allocation($000)'{ F1 Cash&Equiv $629.4.00% Domestic Equity $15,089 96.00% Risk/Return Analysis Periods from 8/03 to 9/13 Alpha 1.32 Beta 0.73 R-Squared 0.92 14.0 13.0 t 12.0 11.0 10.0 9.0 8.0 7.0 6.0 Id 5.0 4.0 3.0 2.0 1.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio t Atlanta Capital Mgmt 13.06 16.61 0.68 0.34 1 Russell 2000 9.41 19.72 0.39 T 91-Day Treasury Bill 1.69 0.56 0.00 123 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 45% 40% 35% 25% 20% 15% 1-- 00 00 ---- t 10% 1-- ---- ---- --- 0% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 11.92 39.37 36.90 23.27 21.49 17.94 11.43 12.86 12.33 12.92 14.97 1st Qt 10.31 33.50 33.40 20.09 19.05 14.14 8.18 9.45 9.56 10.68 12.12 Median 9.37 31.01 30.82 18.77 17.72 12.74 7.14 8.61 8.53 9.85 11.10 3rd Qt 8.20 28.03 28.53 17.51 16.16 11.19 6.42 7.33 7.54 8.93 10.65 Low 3.83 22.54 23.85 13.40 13.00 9.27 4.24 6.24 6.49 8.00 9.69 t Atlanta Capital Mgmt Net Ret 10.25 31.87 29.81 22.31 20.38 16.28 12.22 12.86 12.33 13.05 13.57 Rank 28 43 64 9 9 7 3 5 5 4 9 1 Russell 2000 Net Ret 10.21 30.91 31.77 17.74 16.24 9.79 5.76 5.81 6.80 7.96 9.62 Rank 32 51 37 70 74 92 87 99 85 95 96 124 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% ---- 20% fig - -- --- �__ 10% 0% --- -- -10% - -- -20% -30% -40% ---- -50% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 31.97 23.06 4.74 34.90 48.56 -21.59 10.45 24.68 12.11 28.24 1st Qt 28.72 18.48 -0.19 29.58 35.72 -30.21 3.83 19.19 10.21 23.66 Median 27.15 16.63 -2.87 26.85 28.97 -33.24 0.33 17.34 8.27 20.46 3rd Qt 22.94 14.95 -4.41 24.53 25.98 -36.39 -2.52 15.26 4.82 18.24 Low 18.75 10.79 -10.19 20.43 21.89 -41.40 -8.35 10.88 2.60 12.47 t Atlanta Capital Mgmt Net Ret 28.63 12.53 10.20 25.98 26.83 -19.52 6.91 16.22 6.23 20.24 Rank 26 87 1 64 72 1 12 55 65 53 1 Russell 2000 Net Ret 26.82 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 54 32 80 75 95 20 96 5 80 38 125 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Small Cap Neutral Portfolios 24% 22 20% __________ 18% ]6% � _______ 12% '. 1 ___1___ 10% 8 Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Jun 13 Jun 13 Mar]3 Dee 12 Sep 12 High 20.34 22.59 17.51 16.57 17.19 1 st Qt 1794 2047. 1 5.19 14.07 14.58 Median 16.64 19.08 14.00 12.90 13.27 3rd Qt 15.34 17.66 12.82 11.53 12.16 Low 13.62 15.35 10.55 8.73 10.46 t Atlanta Capital Mgmt Net Ret 20.23 22.59 17.70 16.03 16.78 Rank 6 5 4 6 9 1 Russell 2000 Net R 15.35 17.56 12.11 11.58 11.72 Rank 74 77 85 74 80 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 40.0 35.0% 30.0% 25.0 20.0 15.0%. U 109 1 O.O 3 5.0 5.4 32 27 09 1.2 0.0% 0.0: 0 4 U 2 U U 06 0.1 j..4 07 -5.0% 2.6 -2.6 6.0 10.0% 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.Russell 2000 - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 126 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 3 5 6 11 12 Positive Periods 4 4 10 9 15 14 29 28 Up Market Capture 1.03 0.99 0.94 0.89 Down Market Capture 0.63 0.68 0.60 Batting Average 0.75 0.58 0.65 0.60 Worst Quarter 2.52 3.09 -15,76 -21,47 -16,60 -24,89 -16,60 -24,89 Best Quarter 11.87 11.63 16.42 15.97 18.00 22.70 18.00 22.70 Worst 4 Quarters 31.87 30.91 3.29 -6,00 1.21 -12.62 -24,65 -38,89 Best 4 Quarters 31.87 30.91 31.87 32.63 52.53 65.05 52.53 65.05 Standard Deviation 9.05 9.04 17.48 20.67 20.68 26.71 15.87 20.93 Beta 1.01 0.83 0.76 0.73 Alpha 0.16 1.62 1.87 1.32 R-Squared 0.98 0.95 0.96 0.92 Sharpe Ratio 3.51 3.41 1.27 0.85 0.78 0.36 0.75 0.38 Treynor Ratio 31.61 26.67 21.17 16.23 Tracking Error 1.58 5.17 7.62 7.23 Information Ratio 0.49 0.63 0.55 0.34 127 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 9/30/13 24.0 23.0 • , 22.0 to • • 21.0 • 0 20.0 a 19.0 L • . M ian 18.0 Return ' '•• 1• � • • 17.0 , •! 16.0 • 15.0 , 14.0 ' • 15.0 16.2 17.4 18.6 19.8 21.0 22.2 23.4 24.6 25.8 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 22.31 9 17.48 7 1 Russell 2000 17.74 70 20.67 46 Median 18.77 20.88 5 Years Ending 9/30/13 18.0 17.0 • 16.0 15.0 1 ' 0 14.0 • ' • •. �. 13.0 r• , , • • • Median 12.0 ' * • • • • Return N ,. 11.0 ,%,� 10.0 + + 9.0 • 8.0 19.0 20.4 21.8 23.2 24.6 26.0 27.4 28.8 30.2 31.6 33.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 16.28 7 20.68 3 1 Russell 2000 9.79 92 26.71 66 Median 12.74 25.94 128 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 9/13 Portfolio Russell 2000 EMEEMMEMEMMMMMEMMMMMMM Total Number Of Securities 62 1,995 Equity Market Value 15,089,062 Average Capitalization $(000) 2,751,248 1,627,492 Median Capitalization $(000) 2,118,407 647,394 Equity Segment Yield 0.92 1.28 Equity Segment P/E -Average 26.15 42.95 Equity Segment P/E - Median 25.18 15.80 Equity Segment Beta 1.04 1.28 Price/Book Ratio 3.26 2.09 Debt/Equity Ratio 20.67 42.66 Five Year Earnings Growth 6.92 7.05 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Kirby Expl Co. 531,071 3.52 8.81 Morningstar Inc 515,111 3.42 2.33 Manhattan Assocs Inc 507,794 3.37 23.70 Dril-Quip Inc 496,868 3.29 27.09 Henry Jack &Assoc I 490,811 3.25 9.94 Blackbaud Inc 378,532 2.51 20.27 Moog Inc 'a' 367,861 2.44 13.86 Bio Rad Labs Inc 362,555 2.40 4.78 Fair Isaac Corp 333,560 2.21 20.67 Sally Beauty Hldgs I 319,675 2.12 -15.88 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Heico Corp New 36.10 Sally Beauty Hldgs I -15.88 Power Integrations I 33.71 Columbia Sportswear -3.52 Dril-Quip Inc 27.09 Liquidity Services I -3.20 Lkq Corp 23.73 Monro Muffler Brake -3.00 Manhattan Assocs Inc 23.70 Beacon Roofing Suppl -2.67 Middleby Corp 22.82 Iberiabank Corp -2.62 Caseys Gen Stores 22.51 Universal Health Rlt -1.43 Acuity Brands Inc 22.03 Knight Transn Inc -1.42 Exponet Inc 21.81 Aaron Rents Inc -1.05 Mwi Veterinary Suppl 21.19 Hibbett Sports Inc 1.17 129 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 9/13 Portfolio Russell 2000 EMEEMMEMEMMMMMEMMMMMMM Total Number Of Securities 62 1,995 Equity Market Value 15,089,062 Average Capitalization $(000) 2,751,248 1,627,492 Median Capitalization $(000) 2,118,407 647,394 Equity Segment Yield 0.92 1.28 Equity Segment P/E -Average 26.15 42.95 Equity Segment P/E - Median 25.18 15.80 Equity Segment Beta 1.04 1.28 Price/Book Ratio 3.26 2.09 Debt/Equity Ratio 20.67 42.66 Five Year Earnings Growth 6.92 7.05 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Dril-Quip Inc 496,868 3.29 27.09 Manhattan Assocs Inc 507,794 3.37 23.70 Power Integrations I 292,193 1.94 33.71 Heico Corp New 237,513 1.57 36.10 Blackbaud Inc 378,532 2.51 20.27 Fair Isaac Corp 333,560 2.21 20.67 Acuity Brands Inc 312,592 2.07 22.03 Exponet Inc 310,349 2.06 21.81 Prosperity Bancshare 310,004 2.06 19.84 Graco Inc 317,791 2.11 17.60 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Sally Beauty Hldgs I 319,675 2.12 -15.88 Monro Muffler Brake 286,518 1.90 -3.00 Columbia Sportswear 212,190 1.41 -3.52 Iberiabank Corp 231,133 1.53 -2.62 Liquidity Services I 148,570 0.99 -3.20 Beacon Roofing Suppl 145,157 0.96 -2.67 Knight Transn Inc 191,797 1.27 -1.42 Aaron Rents Inc 217,223 1.44 -1.05 Universal Health Rlt 97,138 0.64 -1.43 Hibbett Sports Inc 172,942 1.15 1.17 130 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 2.82 5.57 27.09 13.29 0.39 -41,418 0.31 Materials 4.19 4.94 9.72 10.08 -0,01 0.00 -41,411 Industrials 27.71 14.26 13.64 12.03 0.45 0.24 0.68 Consumer Discretionary 19.21 14.28 1.04 7.84 -1,31 -4,12 -1,43 Consumer Staples 3.71 3.87 10.85 12.84 -0,07 -0,00 -0,418 Health Care 6.35 12.29 11.25 15.07 -41.24 -0,29 -0,53 Financials 17.04 23.36 7.71 5.38 0.40 0.31 0.71 Information Technology 18.96 17.39 16.45 14.27 0.41 0.06 0.48 Telecom. Services 0.00 0.76 10.56 0.00 -41,4141 -41,4141 Utilities 0.00 3.27 0.83 0.00 0.31 0.31 100.00 100.00 10.70 10.27 0.01 0.42 0.43 Index-Russell 2000 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 -0.06% [Actual Return 10.64%] - [Buy Hold Return 10.70% 131 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 9/13 %Allocation %Return %Variance Energy 82 27.09 !�-5.57 13.29 10.31 Materials 4.19 9.72 4.94 10.08 -0.01 Industrials 14.26 27.71 12.03 64 0.68 Con.Discretionary 14 2 9.21 7 84 -1.43 ME Consumer Staples 3.71 0.85 -0.08 3.87 12.84 Health Care 5 25 -0.53 12.29 15.07 Financials 04 7.71 ` 0.71 23.36 5.38 Infom 18.96 ation Tech. 17.39 1 16.45 0.48 4.27 <' Telecom. Services 0.00 -0.00 0.76 10.56 Utilities 00 0.31 3 27 0.83 Atlanta Capital Mgmt ❑ Russell 2000 132 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 9/30/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 U INN -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 OM Systematic Financial Mgt R2000V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 8/31/03 Systematic Financial Mgt 8.77 27.18 31.29 18.88 14.27 9.94 9.48 R2000V 7.60 23.07 27.04 16.56 9.13 9.29 9.08 Asset Growth(5000) Beginning Market Value 14,850 12,700 12,303 9,614 13,841 14,489 15,001 Net Contributions&Withdrawals 0 0 -1 -1 -6,001 -6,001 -6,001 Gain/Loss+Income 1,302 3,452 3,849 61539 8,312 7,664 7,152 Ending Market Value 16,152 16,152 16,152 16,152 16,152 16,152 16,152 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Dupont Fabros Techno Financials 3.02 Energy 9.53 Graphic Packaging HI Materials 2.06 Materials 5.08 Brandywine Rlty Tr Financials 1.94 Industrials 11.78 Rite Aid Corp Consumer Staples 1.92 Consumer Discretionary 12.75 Coo Finl Group Inc Financials 1.74 Consumer Staples 5.95 Aar Corp Industrials 1.71 Health Care 8.83 Bbcn Bancorp Inc Financials 1.69 Financials 29.32 Bankunited Inc Financials 1.62 Information Technology 13.15 Northwestern Corp Utilities 1.62 Telecom Services 0.96 Hhgregg Inc Consumer Discretionary 1.53 Utilities 2.64 133 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 9/30/13 Asset Allocation($000)-' Cash&Equiv $289 1.79% Domestic Equity $15,863 98.21% Risk/Return Analysis Periods from 8/03 to 9/13 Alpha 0.18 Beta 1.06 R-Squared 0.86 10.0 9.0 8.0 7.0 6.0 N 5.0 4.0 3.0 2.0 1.0 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio s Systematic Financial Mgt 9.48 21.51 0.36 0.09 1 R2000V 9.08 19.70 0.38 T 91-Day Treasury Bill 1.69 0.56 0.00 134 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 9/13 40% S 35% 30% ---- 1 25% 20% 10% 5% --- 0%1 U Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 10.32 34.70 36.00 21.37 19.73 16.85 9.95 11.17 11.16 12.47 13.85 1st Qt 8.94 32.00 33.09 19.45 18.62 13.83 9.06 9.97 10.22 11.87 13.22 Median 8.28 29.98 31.34 18.81 17.89 12.35 8.15 9.11 9.62 10.62 12.14 3rd Qt 7.97 28.12 28.80 17.41 16.95 11.83 6.45 8.12 9.02 10.24 11.49 Low 6.06 25.21 24.88 14.93 14.96 9.93 5.52 6.49 7.23 8.80 11.04 s Systematic Financial Mgt Net Ret 8.77 31.29 37.85 18.88 18.90 14.27 6.04 7.45 8.49 9.54 9.94 Rank 26 36 3 47 17 20 91 79 87 87 100 1 R2000V Net Ret 7.60 27.04 29.80 16.56 15.37 9.13 5.24 5.36 6.40 7.61 9.29 Rank 80 83 68 84 89 97 97 99 100 100 100 135 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% ---- 20% 10% ---- 0% -10% - ---20% -30% -30% -- -40% ---- -50 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 30.59 21.72 2.52 33.23 55.19 -23.82 4.50 29.98 13.67 28.23 1st Qt 28.91 17.93 -0.44 30.88 37.53 -29.40 0.79 21.53 10.86 26.31 Median 26.70 15.30 -3.25 28.02 33.62 -31.81 -2.90 19.90 8.89 24.36 3rd Qt 23.51 10.83 -5.95 25.13 26.61 -35.88 -9.16 15.90 6.98 21.39 Low 19.36 -4.23 -8.96 21.15 22.56 -38.74 -12.81 12.37 2.85 17.34 s Systematic Financial Mgt Net Ret 27.18 23.50 -9.91 35.50 35.72 -40.71 0.49 18.61 8.27 11.42 Rank 42 1 98 1 36 97 28 64 53 100 1 R2000V Net Ret 23.07 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 80 23 71 82 96 21 78 9 88 58 136 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Small Value Portfolios 22% 21% a 20% 19% s 18% ---------- ]7% ----------- 1 16% 1 15% a ------ 14% ! a __________ 13% 12% 1 1 1 1 1 10 Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar]3 __2,, 12 Sep 12 High 20.23 21.49 16.49 14.96 15.74 1 st Qt 1948. 1990. 1 5.59 14.04 14.57 Mcdian 18.68 19.02 13.86 13.23 13.78 3rd Qt 17.70 18.16 13.28 12.38 12.94 Low 15.51 16.65 11.55 10.60 11.45 a Systematic Financial Mgt Net Ret 18.88 20.75 14.15 14.67 15.03 Rank 45 10 45 15 14 1 R2000V Net Ret 16.56 17.33 12.11 11.58 11.72 Rank 90 88 88 88 92 Systematic Financial Mgt Value Added Analysis - Net of Fee 30.0 25.0 20.0 15.0%. 1 O.O 57 5.0 39 2.2 26 29 2.5 Em U.4 "6 : 1.0 14 1 1 O.O% 0.0 U3 0 03 23 24 -5.0 7.4 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.R2000V - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 137 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 6 6 14 12 Positive Periods 4 4 9 9 14 14 26 28 Up Market Capture 1.16 1.30 1.26 1.03 Down Market Capture 1.34 1.04 1.00 Batting Average 0.75 0.67 0.70 0.58 Worst Quarter 3.23 2.47 -27,29 -21,47 -27,29 -24,89 -27,29 -24,89 Best Quarter 11.34 11.63 20.97 15.97 25.37 22.70 25.37 22.70 Worst 4 Quarters 31.29 27.04 -11,68 -6,00 -11,68 -12.62 -40,88 -38,89 Best 4 Quarters 31.29 27.04 44.73 32.63 74.73 65.05 74.73 65.05 Standard Deviation 7.31 8.50 26.48 20.48 29.51 26.60 23.72 20.85 Beta 0.95 1.28 1.09 1.06 Alpha 1.15 -0,36 1.11 0.18 R-Squared 0.94 0.98 0.96 0.86 Sharpe Ratio 4.27 3.17 0.71 0.80 0.48 0.34 0.35 0.36 Treynor Ratio 32.69 14.67 12.95 7.81 Tracking Error 2.60 6.71 6.20 8.99 Information Ratio 1.33 0.49 0.88 0.09 138 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 9/30/13 22.9 o,- 22.0 • 21.1 • 20.2 ' 0 19.3 �; •• r • • • dian 18.4 •' • • Return • • 7�°� 17.5 • ' ' ' 16.6 • ' . • 15.8 • l 14.9 . 14.01 j 16.0 17.1 18.2 19.3 20.4 21.5 22.6 23.7 24.8 25.9 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Systematic Financial Mgt 18.88 47 26.48 100 1 R2000V 16.56 84 20.48 40 Median 18.81 21.43 5 Years Ending 9/30/13 18.0 16.9 15.8 14.7 0 13.6 .v •' 12.5 •? ' • Median 7� • Return 11.4 • •' '��. • ' 10.3 9.2 1 } 8.1 7.0 18.0 19.8 21.6 23.4 25.2 27.0 28.8 30.6 32.4 34.2 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Systematic Financial Mgt 14.27 20 29.51 76 1 R2000V 9.13 97 26.60 44 Median 12.35 27.37 139 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 9/13 Portfolio R2000V Total Number Of Securities 124 1,376 Equity Market Value 15,862,795 Average Capitalization $(000) 1,567,060 1,397,886 Median Capitalization $(000) 1,085,880 552,000 Equity Segment Yield 1.23 2.00 Equity Segment P/E -Average 69.57 32.37 Equity Segment P/E - Median 12.39 14.79 Equity Segment Beta 1.43 1.30 Price/Book Ratio 1.72 1.41 Debt/Equity Ratio 52.72 50.11 Five Year Earnings Growth 9.38 4.31 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Dupont Fabros Techno 479,322 3.02 7.84 Graphic Packaging Hl 326,136 2.06 10.59 Brandywine Rlty Tr 307,094 1.94 -1.44 Rite Aid Corp 304,164 1.92 66.43 Cno Finl Group Inc 276,120 1.74 11.34 Aar Corp 270,567 1.71 24.71 Bbcn Bancorp Inc 267,976 1.69 -2.74 Bankunited Inc 257,318 1.62 21.68 Northwestern Corp 257,167 1.62 13.62 Hhgregg Inc 242,913 1.53 12.15 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Himax Technologies I 100.10 Yrc Worldwide Inc -41.29 Inteliquent Inc 69.18 Hutchinson Technolog -26.43 Biotelemetry Inc 67.97 Big 5 Sporting Goods -26.31 Rite Aid Corp 66.43 Delek US Hldgs Inc -26.05 Callon Pete Co Del 62.31 Pacific Sunwear Cali -17.81 Wendys Co 46.41 Myriad Genetics Inc -12.54 Intersil Hldg Corp 45.21 Lattice Semiconducto -12.03 Medassets Inc 43.29 Harmony Gold Mng Ltd -11.29 Triangle Pete Corp 40.09 Ceva Inc -10.90 Affymetrix Inc 39.64 Cbl &Assoc Pptys In -9.76 140 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 9/13 Portfolio R2000V EMEEMMEMEMMMMEMMMMM Total Number Of Securities 124 1,376 Equity Market Value 15,862,795 Average Capitalization $(000) 1,567,060 1,397,886 Median Capitalization $(000) 1,085,880 552,000 Equity Segment Yield 1.23 2.00 Equity Segment P/E -Average 69.57 32.37 Equity Segment P/E - Median 12.39 14.79 Equity Segment Beta 1.43 1.30 Price/Book Ratio 1.72 1.41 Debt/Equity Ratio 52.72 50.11 Five Year Earnings Growth 9.38 4.31 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Rite Aid Corp 304,164 1.92 66.43 Himax Technologies I 151,500 0.96 100.10 Callon Pete Co Del 147,827 0.93 62.31 Medassets Inc 190,650 1.20 43.29 Supervalu Inc 213,774 1.35 32.32 Hci Group Inc 203,179 1.28 33.81 Aar Corp 270,567 1.71 24.71 Biotelemetry Inc 87,704 0.55 67.97 Bankunited Inc 257,318 1.62 21.68 Intersil Hldg Corp 117,073 0.74 45.21 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Yrc Worldwide Inc 48,952 0.31 -41.29 Myriad Genetics Inc 145,113 0.92 -12.54 Hutchinson Technolog 59,421 0.37 -26.43 Pacific Sunwear Cali 71,625 0.45 -17.81 Big 5 Sporting Goods 46,230 0.29 -26.31 Delek US Hldgs Inc 45,344 0.29 -26.05 Lattice Semiconducto 74,594 0.47 -12.03 Cbl &Assoc Pptys In 90,725 0.57 -9.76 Vishay Intertechnolo 110,210 0.70 -7.20 Stoneridge Inc 104,317 0.66 -7.13 141 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 7.57 7.06 12.66 11.49 0.09 0.02 0.11 Materials 5.80 4.79 1.81 8.45 -0,39 0.01 -0,38 Industrials 13.93 13.06 9.42 11.37 -0,27 0.03 -0,24 Consumer Discretionary 14.18 10.87 11.39 8.53 0.41 0.03 0.44 Consumer Staples 5.35 2.73 23.12 9.58 0.72 0.05 0.78 Health Care 7.46 4.36 8.33 12.48 -0,31 0.15 -0,16 Financials 28.95 39.44 8.08 4.78 0.96 0.30 1.25 Information Technology 14.33 10.58 5.29 11.54 -0,90 0.15 -0,75 Telecom. Services 0.00 0.66 5.93 0.00 0.01 0.01 Utilities 2.42 6.44 5.80 0.80 0.12 0.27 0.40 100.00 100.00 9.09 7.63 0.43 1.02 1.46 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 -0.15% [Actual Return 8.93%] - [Buy Hold Return 9.09%] 142 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 9/13 %Allocation %Return %Variance Energy 7.57 12.66 7.06 1-1.49 10.11 Materials 5.80 4.79 8.45 -0.38 Industrials 13 13.93 1.37 -0.24 Con.Discretionary 10 87 14.18 8.53 39 0.44 Consumer Staples 5.35 23.12 0.78 2.73 9.58 Health Care 7.46 3 -0.16 4.36 12.48 Financials 5 Z4.7 08 1.25 39.44 Infomation Tech. 14,33 -0,75 In "10.58 11,54 Telecom. Services 0.00 0.01 0.66 5.93 .42 5.80 0.40 Utilities 6.44 4.80 Systematic Financial Mgt ❑ R2000V 143 144 City of Clearwater Employees Pension Fund International EQ Comp as of 9/30/13 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 5/31/01 International EQ Comp 7.92 4.88 11.50 4.56 7.59 8.30 5.70 MSCI EAFE 11.61 16.59 24.29 8.97 6.85 8.49 5.78 Asset Growth(5000) Beginning Market Value 105,739 108,811 102,373 110,792 77,293 35,927 20,000 Net Contributions&Withdrawals -9 -21 -45 -9,575 -9,737 -9,737 -9,737 Gain/Loss+Income 8,371 5,310 11,772 12,882 46,544 87,910 103,837 Ending Market Value 114,100 114,100 114,100 114,100 114,100 114,100 114,100 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Core Laboratories N Energy 4.37 Energy 23.01 Bhp Billiton Ltd Materials 3.41 Materials 18.54 Rio Tinto Plc Materials 3.05 Industrials 12.86 Canadian Pac Railway Industrials 2.76 Consumer Discretionary 3.17 Novartis A G Health Care 2.66 Consumer Staples 8.53 Arm Hldgs Plc Information Technology 2.64 Health Care 10.47 Tenaris S A Energy 2.25 Financials 16.34 Schlumberger Ltd Energy 2.16 Information Technology 6.27 Agrium Inc Materials 2.10 Telecom Services 0.81 Nestle S A Consumer Staples 1.97 Utilities 0.00 Holdings and allocations only include SMA accounts. 145 City of Clearwater Employees Pension Fund International EQ Comp as of 9/30/13 Asset Allocation($000)? E Cash&Equiv $3,626 3.18% Intl Equity $110,475 96.82% EM 4D Risk/Return Analysis Periods from 5101 to 9/13 Alpha -0.01 Beta 1.03 R-Squared 0.95 6.0 5.5 5.0 4.5 4.0 N 3.5 3.0 2.5 2.0 1.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio I International EQ Comp 5.70 18.64 0.21 -0.00 1 MSCI EAFE 5.78 18.20 0.22 T 91-Day Treasury Bill 1.76 0.52 0.00 Holdings and allocations only include SMA accounts. 146 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 9/13 35% 30% 25% 20% ---- 15% 10% -'�_-- ------ ---- --- -1--- 5°i° ---- 1-- o°i° i-- -5% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 14.12 31.52 26.84 16.03 15.47 15.15 7.48 10.59 10.80 13.93 15.42 1st Qt 11.29 24.80 21.56 11.29 11.07 10.31 3.11 6.75 8.16 10.40 11.76 Median 9.56 19.52 18.88 8.87 8.84 8.05 1.19 4.78 6.34 8.48 9.72 3rd Qt 6.67 13.30 14.98 6.28 7.15 6.62 -0.41 3.20 5.05 7.09 8.48 Low 2.37 0.51 8.42 -0.70 3.92 4.60 -2.91 0.86 2.72 5.20 6.70 1 International EQ Comp Net Ret 7.92 11.50 14.54 4.56 7.25 7.59 -0.05 3.19 5.15 7.26 8.30 Rank 65 78 76 82 73 59 70 75 72 71 78 1 MSCI EAFE Net Ret 11.61 24.29 19.21 8.97 7.63 6.85 -0.45 2.89 4.84 7.04 8.49 Rank 19 27 44 48 66 72 75 79 77 75 74 147 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 90% 80% 70% 60% 50% 40% ---- ---- 30% ---- 20% ---- 10% ---- t- -- --- 1-- -10% _ -20% --- -30% -40% _ -50% ---- -60% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 24.35 25.98 -1.77 25.22 77.72 -24.43 40.61 35.58 37.04 30.79 58.62 1st Qt 18.29 20.86 -10.11 17.43 43.14 -40.30 18.45 29.50 20.88 23.81 44.30 Median 14.63 18.42 -12.89 12.29 35.77 -43.42 12.26 26.18 15.57 19.98 37.87 3rd Qt 10.62 16.22 -15.49 8.80 26.88 -47.50 8.10 22.37 11.84 16.98 32.72 Low 2.19 7.47 -21.64 2.37 12.96 -56.53 0.74 11.79 6.45 10.27 24.34 1 International EQ Comp Net Ret 4.88 17.61 -15.04 18.37 57.93 -47.94 11.02 27.62 13.15 17.66 31.06 Rank 92 60 70 21 12 77 59 37 66 71 83 1 MSCI EAFE Net Ret 16.59 17.90 -11.73 8.21 32.46 -43.06 11.63 26.85 14.01 20.69 39.16 Rank 35 55 37 77 59 46 53 42 58 41 41 148 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 4 3 7 6 17 17 Positive Periods 3 3 8 9 13 14 32 32 Up Market Capture 0.67 0.91 1.08 1.01 Down Market Capture 6.39 1.23 1.04 1.02 Batting Average 0.00 0.33 0.50 0.47 Worst Quarter -4,66 -0,76 -21,66 -18,95 -26,42 -19,90 -26,42 -20,50 Best Quarter 7.92 11.61 11.27 11.61 31.05 25.85 31.05 25.85 Worst 4 Quarters 11.50 24.29 -15,04 -16,68 -15,04 -16,68 -47,94 -46,20 Best 4 Quarters 11.50 24.29 17.66 24.29 71.81 55.20 71.81 58.14 Standard Deviation 11.25 10.15 18.50 16.81 26.73 24.47 22.33 21.21 Beta 0.90 1.06 1.05 1.03 Alpha -2.21 -1.16 0.21 -0,01 R-Squared 0.85 0.94 0.93 0.95 Sharpe Ratio 1.01 2.38 0.24 0.53 0.28 0.27 0.19 0.21 Treynor Ratio 12.73 4.19 7.08 4.16 Tracking Error 3.39 4.72 7.26 5.10 Information Ratio -3,18 486 0.15 -0,00 149 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 9/30/13 22.0 19.4 16.8 • • , 14.2 : �'• �� • , •' S 0 11.6 • • ••, •' •• • *�� • • + • 9.0 • • ' • • •• • • N• Median • • • • , Return N 6.3 4 , 3.7 • .40 ,. 1.1 • ' -1.4 ' -4.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 4.56 82 18.50 65 1 MSCI EAFE 8.97 48 16.81 34 Median 8.87 17.68 5 Years Ending 9/30/13 18.0 16.0 14.0 12.0 • • • 0 10.0 • ' •~. • • • � 8.0 • + • l ' • • • Median • :' Return 6.0 ' • r ' • , � ' •, ' • • 4.0 • + 2.0 , • 0.0 -2.0 14.0 16.2 18.4 20.6 22.8 25.0 27.2 29.4 31.6 33.8 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 7.59 59 26.74 72 1 MSCI EAFE 6.85 72 24.47 47 Median 8.05 24.76 150 City of Clearwater Employees Pension Fund Earnest Partners as of 9/30/13 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 OM Earnest Partners MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Earnest Partners 10.70 9.15 18.81 8.30 10.55 3.75 MSCI EAFE 11.61 16.59 24.29 8.97 6.85 0.53 Asset Growth(5000) Beginning Market Value 38,678 39,235 36,063 27,858 21,440 29,002 Net Contributions&Withdrawals -8 -16 -36 5,444 5,440 5,440 Gain/Loss+Income 4,136 3,587 6,779 91505 15,926 8,364 Ending Market Value 42,807 42,807 42,807 42,807 42,807 42,807 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Arm Hldgs Plc Information Technology 4.73 Energy 16.43 Core Laboratories N Energy 4.62 Materials 11.82 Shire Health Care 3.48 Industrials 8.66 Denso Corp Consumer Discretionary 3.32 Consumer Discretionary 5.69 Getinge Ab Health Care 3.24 Consumer Staples 2.82 Icici Bk Ltd Financials 2.92 Health Care 16.32 Roche Holdings Ag Health Care 2.84 Financials 25.56 Diageo Consumer Staples 2.82 Information Technology 11.25 Icon Plc Health Care 2.73 Telecom Services 1.46 Schoeller Bleckmann Energy 2.68 Utilities 0.00 151 City of Clearwater Employees Pension Fund Earnest Partners as of 9/30/13 Asset;Allocation($000) Cash&Equiv $2,059 4.81% Intl Equity $40,748 95.19% EM 4D Risk/Return Analysis Periods from 4/08 to 9/13 Alpha 0.89 Beta 1.07 R-Squared 0.96 4.0 3.5 e 3.0 2.5 a� 2.0 1.5 1.0 0.5 0.0 -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 24.0 26.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio e Earnest Partners 3.75 23.53 0.15 0.64 1 MSCI EAFE 0.53 22.70 0.01 T 91-Day Treasury Bill 0.30 0.18 0.00 152 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 9/13 35% 30% 25% 20% -------- < e 15% 10% -1----- ------ ------- ------- 5% r-------- 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 14.12 31.52 26.84 16.03 15.47 15.15 1st Qt 11.29 24.80 21.56 11.29 11.07 10.31 Median 9.56 19.52 18.88 8.87 8.84 8.05 3rd Qt 6.67 13.30 14.98 6.28 7.15 6.62 Low 2.37 0.51 8.42 -0.70 3.92 4.60 e Earnest Partners Net Ret 10.70 18.81 17.30 8.30 10.08 10.55 Rank 33 53 62 58 33 23 1 MSCI EAFE Net Ret 11.61 24.29 19.21 8.97 7.63 6.85 Rank 19 27 44 48 66 72 153 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 90% 80% ol 70% 60% 50% 40% 30% 1 20% --- ------ 10% --------- ---1------ 0% -10% le ------ -20% -30% 9/30/13 YTD 2012 2011 2010 2009 High 24.35 25.98 -1.77 25.22 77.72 1st Qt 18.29 20.86 -10.11 17.43 43.14 Median 14.63 18.42 -12.89 12.29 35.77 3rd Qt 10.62 16.22 -15.49 8.80 26.88 Low 2.19 7.47 -21.64 2.37 12.96 e Earnest Partners Net Ret 9.15 17.18 -6.88 16.61 55.54 Rank 83 65 14 28 13 1 MSCI EAFE Net Ret 16.59 17.90 -11.73 8.21 32.46 Rank 35 55 37 77 59 154 City of Clearwater Employees Pension Fund September 30, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20 18% 16%- 14% 12% 1O% 8% __________ e___ 6% _____ 4% __________ 2% 1___ 0 -2 9113 6113 3113 ]2112 9112 High 16.03 17.58 14.00 12.75 12.88 1 st Qt 11.29 12.98 9.08 8.10 7.76 Median 8.87 10.57 6.41 5.68 5.12 3rd Qt 6.28 8.27 4.70 3.96 2.84 Low -0.70 2.15 0.54 0.43 -0.51 Earnest Partners Net Ret 8.30 11.05 8.12 8.36 7.31 Rank 58 42 32 22 29 1 MSCIEAFE Net Ret 8.97 10.55 5.49 4.04 2.59 Rank 48 50 61 73 78 Earnest Partners Value Added Analysis - Net of Fee 30.0 25.0 20.0 15.0%. 1 O.O 6.5 5.0% 2 MMM 3.9 4 1 34 31 2.0 '2:4 1.7 1 IMM 3 3 2 ri 1.9 -2.4 2.8 -2.9 INU 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.MSCI EAFE - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 155 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 9/30/13 22.0 o, 19.4 16.8 • ' 14.2 • �• 0 11.6 • .•• • •••,. 9.0 • • • •• •• . • • ••• • Median 7� ' • • . Return N 6.3 % • 3.7 •' .• •. . ' 1.1 • ' -1.4 ' -4.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank e Earnest Partners 8.30 58 18.41 64 1 MSCI EAFE 8.97 48 16.81 34 Median 8.87 17.68 5 Years Ending 9/30/13 18.0 16.0 14.0 12.0 • ' • 0 10.0 ' ' •• �� A • 8.0 • • ' • • • Median • •' •• ;s Return • 7�°� 6.0 • r • • •. • 2.0 • • 0.0 -2.0 14.0 16.2 18.4 20.6 22.8 25.0 27.2 29.4 31.6 33.8 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank e Earnest Partners 10.55 23 26.86 73 1 MSCI EAFE 6.85 72 24.47 47 Median 8.05 24.76 156 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 9/13 Portfolio MSCI EAFE EMEEMMEMMEMMMMMEMEMMMM Total Number Of Securities 49 908 Equity Market Value 40,747,594 Average Capitalization $(000) 36,639,865 59,568,812 Median Capitalization $(000) 17,302,363 8,398,437 Equity Segment Yield 2.04 3.16 Equity Segment P/E -Average 18.56 18.43 Equity Segment P/E - Median 16.39 18.43 Equity Segment Beta 1.06 1.00 Price/Book Ratio 1.81 1.64 Debt/Equity Ratio 87.50 87.09 Five Year Earnings Growth 6.42 5.85 Five Year Dividend Growth 3.45 4.23 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Arm Hldgs Plc 1,922,153 4.73 33.27 Core Laboratories N 1,878,231 4.62 11.81 Shire 1,416,543 3.48 27.01 Denso Corp 1,348,912 3.32 0.10 Getinge Ab 1,316,025 3.24 18.44 Icici Bk Ltd 1,186,343 2.92 -20.31 Roche Holdings Ag 1,155,507 2.84 8.60 Diageo 1,145,786 2.82 13.35 Icon Plc 1,109,203 2.73 15.52 Schoeller Bleckmann 1,088,942 2.68 16.31 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Societe Generale 45.28 Daphne International -27.92 Weichai Power Co 34.42 Icici Bk Ltd -20.31 Arm Hldgs Plc 33.27 Orient Overseas Int -9.07 China Oilfield Servi 28.08 Transocean Ltd Zug -6.06 Shire 27.01 Carnival Corp -4.16 Nippon Steel& Sumit 26.51 China Shipping Conta 0.02 Subsea 7 S.A. 23.34 Denso Corp 0.10 Banco Do Brasil S A 21.29 United Industrial Co 2.08 Advanced Semiconduct 21.29 Bancolombia S A 2.53 Rio Tinto Plc 20.71 Hitachi 3.58 157 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 9/13 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.02 8.02 10.31 13.07 1.87 0.00 17.43 17.43 -0.17 0.11 0.13 0.08 Austria 0.27 0.27 14.42 19.16 5.23 5.09 13.08 17.76 0.34 0.03 -0.07 0.30 Belgium 1.14 1.14 9.12 13.64 0.00 0.00 -0.02 -0.00 -0.02 Bermuda 0.00 0.00 0.00 0.00 Brazil 0.00 0.00 2.77 0.00 14.51 14.51 -0.21 0.40 0.19 Canada 0.00 0.00 1.54 0.00 10.82 10.82 -0.12 0.17 0.05 Cayman Islands 0.00 0.00 1.23 0.00 -27.93 -27.92 -0.09 -0.34 -0.44 Channel Islands 0.37 0.37 25.10 33.57 0.00 0.00 -0.06 -0.02 -0.08 China 0.00 0.00 7.66 0.00 21.20 21.22 -0.58 1.62 1.04 Colombia 0.00 0.00 1.86 0.00 2.53 2.53 -0.14 0.05 -0.09 Czech Republic 0.00 0.00 1.11 1.08 13.94 19.76 -0.08 -0.04 0.15 0.03 Denmark 1.11 1.11 9.18 13.71 0.00 0.00 -0.02 -0.00 -0.02 Finland 0.77 0.77 21.56 26.59 0.00 0.00 -0.11 -0.01 -0.11 France 9.43 9.43 11.21 15.81 1.26 1.23 39.51 45.28 -0.29 -0.04 0.36 0.02 Germany 8.65 8.65 8.24 12.72 1.90 1.85 3.31 7.58 -0.04 -0.02 -0.09 -0.16 Greece 0.03 0.03 28.32 33.63 0.00 0.00 -0.01 -0.00 -0.01 Hong Kong 3.03 3.03 8.19 8.20 2.62 11.22 -9.03 -9.07 -0.00 -0.34 -0.45 -0.79 India 0.00 0.00 3.64 0.00 -20.31 -20.31 -0.28 -0.74 -1.02 Ireland 0.32 0.32 12.34 16.99 0.00 0.00 -0.02 -0.00 -0.02 Isle of Man 0.06 0.06 8.71 9.89 0.00 0.00 -0.00 0.00 0.00 Israel 0.50 0.50 -0.63 2.60 0.00 0.00 0.04 0.00 0.05 Italy 1.97 1.97 15.29 20.06 0.00 0.00 -0.15 -0.01 -0.16 Japan 22.56 22.56 5.45 6.75 9.66 9.42 7.20 8.52 0.28 0.37 0.17 0.82 Luxembourg 0.00 0.00 1.44 0.00 21.49 23.34 -0.11 0.31 0.20 Mexico 0.00 0.00 0.00 0.00 Netherlands 2.61 2.61 10.69 15.24 4.78 0.00 11.81 11.81 0.07 -0.01 0.05 0.11 New Zealand 0.12 0.12 9.81 18.42 0.00 0.00 -0.00 -0.01 -0.01 Norway 0.82 0.82 5.71 7.32 5.99 5.39 3.97 6.55 -0.10 -0.11 -0.10 -0.32 Panama 0.00 0.00 1.96 0.00 -4.16 -4.16 -0.15 -0.08 -0.23 Portugal 0.17 1 0.17 1 6.67 11.09 1 0.00 0.00 0.00 1 -0.00 0.00 Benchmark: MSCI EAFE Index Gross Dividend 158 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 9/13 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Scotland 0.06 0.06 8.32 15.66 0.00 0.00 -3.00 -0.00 -3.913 Singapore 1.67 1.67 3.41 4.53 1.28 1.25 0.99 2.08 0.02 0.01 -0.03 -0.00 South Africa 0.00 0.00 0.00 0.00 South Korea 0.00 0.00 1.11 0.00 13.15 13.15 -0.08 0.15 0.06 Spain 2.82 2.82 20.77 25.77 2.70 2.63 7.75 12.21 -0.02 -0.00 -3.35 -3.37 Sweden 3.11 3.11 9.54 15.11 3.16 3.08 12.71 18.44 0.00 -3.913 0.10 0.10 Switzerland 9.19 9.19 4.69 9.58 9.18 2.95 4.84 6.41 0.00 -0.05 0.01 -0.03 Taiwan 0.00 0.00 2.19 0.00 21.29 21.29 -3.17 0.47 0.30 United Kingdom 21.66 21.66 4.47 11.55 16.43 8.73 18.02 20.24 0.16 -3.38 2.23 2.01 United States 0.00 0.00 7.44 46.08 8.16 8.16 -3.57 -1.90 0.61 -1.86 100.00 100.00 1 7.62 1 11.74 100.00 100.00 9.62 11.22 -2.58 -2.43 1 4.71 1 -0.40 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] 159 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis Earnest Partners Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 15.99 6.97 12.54 10.71 0.29 -0,09 0.20 Materials 10.68 7.99 15.80 15.05 0.08 0.09 0.17 Industrials 9.27 12.68 9.77 14.42 -0,43 -0,09 -0,52 Consumer Discretionary 6.86 11.73 -3,96 13.16 -1,31 -0,17 -1,38 Consumer Staples 2.84 11.82 13.35 6.90 0.18 0.43 0.61 Health Care 13.38 10.51 14.43 5.94 1.14 -0,17 0.97 Financials 28.85 24.88 8.26 12.88 -1.73 0.05 -1,29 Information Technology 10.62 4.41 20.47 10.14 1.10 -0,10 1.00 Telecom. Services 1.50 5.21 10.82 17.77 -0,10 -0,23 -0,33 Utilities 0.00 3.80 9.56 0.00 0.08 0.08 100.00 100.00 11.22 11.70 -0,39 -0,09 -0,48 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 -0.05% [Actual Return 1 1.17%] - [Buy Hold Return 11.22% 160 City of Clearwater Employees Pension Fund WHV as of 9/30/13 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 WHV MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 WHV 7.23 7.00 11.60 7.45 5.91 0.57 MSCI EAFE 11.61 16.59 24.29 8.97 6.85 0.53 Asset Growth(5000) Beginning Market Value 31,607 31,677 30,376 27,339 22,441 29,002 Net Contributions&Withdrawals -1 -5 -9 -19 -20 -20 Gain/Loss+Income 2,284 2,218 3,523 61570 11,469 4,908 Ending Market Value 33,890 33,890 33,890 33,890 33,890 33,890 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Canadian Pac Railway Industrials 6.23 Energy 31.30 Bhp Billiton Ltd Materials 5.35 Materials 27.01 Tenaris S A Energy 5.10 Industrials 18.14 Schlumberger Ltd Energy 4.89 Consumer Discretionary 0.00 Agrium Inc Materials 4.75 Consumer Staples 15.74 Nestle S A Consumer Staples 4.44 Health Care 3.09 Rio Tinto Plc Materials 4.41 Financials 4.72 Noble Corporation Ba Energy 4.40 Information Technology 0.00 Canadian Natl Ry Co Industrials 4.34 Telecom Services 0.00 Core Laboratories N Energy 4.06 Utilities 0.00 161 City of Clearwater Employees Pension Fund WHV as of 9/30/13 Asset Allocation($000) Cash&Equiv $1,567 4.62% Intl Equity $32,324 95.38% Risk/Return Analysis Periods from 4/08 to 9/13 Alpha -0.36 Beta 1.11 R-Squared 0.88 0.6 W a 0.5 N 0.4 0.3 -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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio W WHV 0.57 24.96 0.01 -0.13 1 MSCI EAFE 0.53 22.70 0.01 T 91-Day Treasury Bill 0.30 0.18 0.00 162 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 9/13 35% 30% 25% 20% -------- W 15% 10% - --1----- w -------- 5% - ------ 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 14.12 31.52 26.84 16.03 15.47 15.15 1st Qt 11.29 24.80 21.56 11.29 11.07 10.31 Median 9.56 19.52 18.88 8.87 8.84 8.05 3rd Qt 6.67 13.30 14.98 6.28 7.15 6.62 Low 2.37 0.51 8.42 -0.70 3.92 4.60 w WHV Net Ret 7.23 11.60 17.45 7.45 8.45 5.91 Rank 69 78 61 65 55 86 1 MSCI EAFE Net Ret 11.61 24.29 19.21 8.97 7.63 6.85 Rank 19 27 44 48 66 72 163 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 90% 80% 70% 60% 50% 40% ---------- 30% 1 ---------- 20% --- ------ ------ ------ w--------- 10% ---------- -- w ---1------ 0 -10% -20% ---------- -30% 9/30/13 YTD 2012 2011 2010 2009 High 24.35 25.98 -1.77 25.22 77.72 1st Qt 18.29 20.86 -10.11 17.43 43.14 Median 14.63 18.42 -12.89 12.29 35.77 3rd Qt 10.62 16.22 -15.49 8.80 26.88 Low 2.19 7.47 -21.64 2.37 12.96 w WHV Net Ret 7.00 16.97 -13.64 17.58 55.98 Rank 88 67 58 24 13 1 MSCI EAFE Net Ret 16.59 17.90 -11.73 8.21 32.46 Rank 35 55 37 77 59 164 City of Clearwater Employees Pension Fund September 30, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20 18% 16%- 14% 12% ]O% 8% __________ __________ ________ 6% _____ 4% __________ 2% 1___ 0 -2 9113 6113 3113 ]2112 9112 High 16.03 17.58 14.00 12.75 12.88 1 st Qt 11.29 12.98 9.08 8.10 7.76 Median 8.87 10.57 6.41 5.68 5.12 3rd Qt 6.28 8.27 4.70 3.96 2.84 Low -0.70 2.15 0.54 0.43 -0.51 - WHV Net Ret 7.45 10.90 6.23 5.90 7.41 Rank 65 46 51 47 28 1 MSCIEAFE Net Ret 8.97 10.55 5.49 4.04 2.59 Rank 48 50 61 73 78 WHV Value Added Analysis - Net of Fee 15.0%. 122 O.O 7 6.5 61 5.0,E 29 1.8 ! '. 1.7 1: U:3 0 1 -o.2 2 4 I -M 2.0 2.2 31 -5.0% 3.9 4H 6.3 -15.0% 16.1 -20.0 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.MSCI EAFE - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 165 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 9/30/13 22.0 19.4 16.8 • • , 14.2 , •�• '• , 0 11.6 • �•. •� • ••�, ' • 9.0 • • * • • 4 • • • ,•. • Median • , • , , Return N 3.7 • ,•' ,. . ' 1.1 • ' -1.4 ' -4.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 7.45 65 20.69 89 1 MSCI EAFE 8.97 48 16.81 34 Median 8.87 17.68 5 Years Ending 9/30/13 18.0 16.0 , 14.0 12.0 , • • • 0 10.0 • 8.0 • • ' • • Median ' :' • '' rs Return 6.0 ' • r '• • • ' ' •' • • • 2.0 0.0 -2.0 j j 14.0 16.2 18.4 20.6 22.8 25.0 27.2 29.4 31.6 33.8 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 5.91 86 28.40 82 1 MSCI EAFE 6.85 72 24.47 47 Median 8.05 24.76 166 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 9/13 Portfolio MSCI EAFE EMEEMMEMMMEMMMMMMMMMM Total Number Of Securities 36 908 Equity Market Value 32,323,727 Average Capitalization $(000) 57,609,078 59,568,812 Median Capitalization $(000) 29,025,008 8,398,437 Equity Segment Yield 2.30 3.16 Equity Segment P/E -Average 17.68 18.43 Equity Segment P/E - Median 18.53 18.43 Equity Segment Beta 0.00 1.00 Price/Book Ratio 2.01 1.64 Debt/Equity Ratio 55.74 87.09 Five Year Earnings Growth -0.37 5.85 Five Year Dividend Growth 7.57 4.23 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Canadian Pac Railway 2,009,790 6.23 1.86 Bhp Billiton Ltd 1,725,675 5.35 17.43 Tenaris S A 1,644,317 5.10 16.17 Schlumberger Ltd 1,577,226 4.89 23.78 Agrium Inc 1,531,867 4.75 -2.52 Nestle S A 1,433,760 4.44 5.81 Rio Tinto Plc 1,422,573 4.41 20.71 Noble Corporation Ba 1,418,264 4.40 1.14 Canadian Natl Ry Co 1,401,440 4.34 4.67 Core Laboratories N 1,311,378 4.06 11.81 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Teck Resources Ltd 25.60 Potash Corp Sask Inc -17.23 Schlumberger Ltd 23.78 Transocean Ltd Zug -6.06 Suncor Energy Inc Ne 22.03 Unilever N V -3.31 Ubs Ag 21.06 Agrium Inc -2.52 Rio Tinto Plc 20.71 Noble Corporation Ba 1.14 Vale S A 18.71 Talisman Energy Inc 1.25 Bhp Billiton Ltd 17.43 Partnerre Hldgs Ltd 1.82 Axa Sa 17.37 Canadian Pac Railway 1.86 Ingersoll-Rand Plc 17.35 Yara Intl Asa 3.00 Tenaris S A 16.17 British Amern Tob PI 3.48 167 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 9/13 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.02 8.02 10.31 13.07 4.05 0.00 17.43 17.43 -3.11 0.11 0.29 0.29 Austria 0.27 0.27 14.42 19.16 0.00 0.00 -0.02 -3.00 -0.02 Belgium 1.14 1.14 9.12 13.64 0.00 0.00 -0.02 -0.013 -0.02 Bermuda 0.00 0.00 5.21 0.00 5.08 5.08 -0.40 0.26 -3.13 Brazil 0.00 0.00 2.90 0.00 18.24 18.24 -3.22 0.53 0.31 Canada 0.00 0.00 29.03 0.00 2.28 2.28 -2.21 0.66 -1.55 Cayman Islands 0.00 0.00 4.85 0.00 1.14 1.14 -3.37 0.06 -3.31 Channel Islands 0.37 0.37 25.10 33.57 0.00 0.00 -0.06 -0.02 -0.08 China 0.00 0.00 0.00 0.00 Denmark 1.11 1.11 9.18 13.71 0.00 0.00 -0.02 -3.4313 -0.02 Finland 0.77 0.77 21.56 26.59 0.00 0.00 -3.11 -0.01 -3.11 France 9.43 9.43 11.21 15.81 0.60 0.00 17.37 17.37 -0.32 -0.05 0.04 -0.3 Germany 8.65 8.65 8.24 12.72 2.85 0.00 7.27 7.27 -0.04 -0.0-3) -0.0-3) -0.09 Greece 0.03 0.03 28.32 33.63 0.00 0.00 -0.01 -0.00 -0.01 Hong Kong 3.03 3.03 8.19 8.20 0.00 0.00 -0.02 0.12 0.11 Ireland 0.32 0.32 12.34 16.99 3.51 0.00 17.35 17.35 0.15 -0.00 0.18 0.32 Isle of Man 0.06 0.06 8.71 9.89 0.00 0.00 -3.313 0.00 0.00 Israel 0.50 0.50 -0.63 2.60 0.00 0.00 0.04 0.00 0.05 Italy 1.97 1.97 15.29 20.06 0.00 0.00 -3.15 -3.(31 -3.16 Japan 22.56 22.56 5.45 6.75 0.00 0.00 0.49 0.64 1.12 Luxembourg 0.00 0.00 3.28 0.00 16.17 16.17 -3.25 0.53 0.28 Mexico 0.00 0.00 0.00 0.00 Netherland Antilles 0.00 0.00 4.40 0.00 23.78 23.78 -3.34 1.05 0.71 Netherlands 2.61 2.61 10.69 15.24 7.02 0.00 5.39 5.39 0.14 -0.01 -3.37 -3.25 New Zealand 0.12 0.12 9.81 18.42 0.00 0.00 -0.00 -0.01 -0.01 Norway 0.82 0.82 5.71 7.32 0.12 0.00 3.00 3.00 0.01 0.02 -0.00 0.03 Portugal 0.17 0.17 6.67 11.09 0.00 0.00 0.00 -0.00 0.00 Scotland 0.06 0.06 8.32 15.66 0.00 0.00 -3.4313 -3.4313 -3.313 Singapore 1.67 1.67 3.41 4.53 0.00 0.00 0.07 0.05 0.12 South Africa 0.00 1 0.00 0.00 0.00 Benchmark: MSCI EAFE Index Gross Dividend 168 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 9/13 Benchmark Portfolio Ret7Attribution n Countries/ Active Currency Local US$ Active Currency Local US$ Market Currty Currencies Weight Weight Return Return Weight Weight Return Return Select Selt Total Spain 2.82 2.82 20.77 25.77 0.00 0.00 -7.37 -0. -0.40 Sweden 3.11 3.11 9.54 15.11 0.00 0.00 -0.06 -0. -0.10 Switzerland 9.19 9.19 4.69 9.58 17.27 0.00 6.56 6.56 -7.24 -0. 0.02 United Kingdom 21.66 21.66 4.47 11.55 11.53 0.00 12.60 12.60 0.32 -0. 4 0.62 United States 0.00 0.00 3.39 100.00 5.23 5.23 -0.26 -4. 8 -4.20 100.00 100.00 7.62 11.74 100.00 100.00 7.86 7.86 -4.37 -4. 2 -3.83 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] 169 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis WHV Quarter Ending 9/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 29.70 6.97 11.10 10.71 0.11 -0,23 -0,11 Materials 27.15 7.99 6.65 15.05 -2,28 0.64 -1,64 Industrials 18.49 12.68 6.22 14.42 -1,52 0.16 -1,36 Consumer Discretionary 0.00 11.73 13.16 0.00 -0,17 -0,17 Consumer Staples 16.69 11.82 5.38 6.90 -0,25 -0,23 -0,49 Health Care 3.16 10.51 8.49 5.94 0.08 0.42 0.50 Financials 4.81 24.88 9.15 12.88 -0,18 -0,24 -0,42 Information Technology 0.00 4.41 10.14 0.00 0.07 0.07 Telecom. Services 0.00 5.21 17.77 0.00 -0,32 -0,32 Utilities 0.00 3.80 9.56 0.00 0.08 0.08 100.00 100.00 7.86 11.70 -4,03 0.19 -3,84 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 -0.06% Actual Return 7.80% Buy Hold Return 7.86% 170 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 9/30/13 Portfolio Performance 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 AU -1.0 -2.0 -3.0 -4.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 OM Eaton Vance Mgmt MSCI Emg Mkts Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Eaton Vance Mgmt 5.50 -1.31 4.09 0.54 6.99 0.12 MSCI Emg Mkts 5.90 -4.05 1.33 -0.00 7.56 -0.64 Asset Growth(8000) Beginning Market Value 35,453 37,899 35,933 28,792 5,912 8,277 Net Contributions&Withdrawals 0 0 0 7,692 7,536 7,536 Gain/Loss+Income 1,950 -495 1,470 919 23,956 21,590 Ending Market Value 37,403 37,403 37,403 37,403 37,403 37,403 171 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 9/30/13 Asset Allocation($000) Cash&Equiv $0 0.00%0 Intl Equity $37,403 100.00% EM 49 Risk/Return Analysis Periods from 4/08 to 9/13 Alpha 0.10 Beta 0.98 R-Squared 0.98 0.4 0.3 0.2 0.1 V 0.0 -0.1 N -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio v Eaton Vance Mgmt 0.12 25.97 -0.01 0.05 1 MSCI Emg Mkts -0.64 27.19 -0.03 T 91-Day Treasury Bill 0.30 0.18 0.00 172 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 9/13 16% 14% 12% -------- 10% ------ v 1 8% -------- 6% X------- -------- 2% -------- 1 0% -2 -------- 1 -------- -4% -6% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 11.69 9.64 14.29 6.19 12.02 15.22 1st Qt 7.09 4.89 12.13 2.71 8.25 10.81 Median 5.70 2.14 10.08 0.87 6.27 8.11 3rd Qt 3.25 -0.13 7.92 -0.95 3.71 6.57 Low -1.23 -3.31 1.19 -5.64 1.07 4.11 v Eaton Vance Mgmt Net Ret 5.50 4.09 9.35 0.54 5.37 6.99 Rank 52 32 59 54 57 68 1 MSCI Emg Mkts Net Ret 5.90 1.33 9.03 -0.00 4.78 7.56 Rank 44 54 61 59 64 59 173 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 100% 90% 80% 70% 60% 50% 40% 30% 20% ------ 10 0% -10% --- ------ -20% -30% 9/30/13 YTD 2012 2011 2010 2009 High 10.48 26.15 -1.50 28.11 88.77 1st Qt -0.52 22.35 -11.22 23.83 79.38 Median -3.18 19.28 -17.61 19.98 73.62 3rd Qt -5.53 16.78 -21.19 17.57 69.33 Low -8.22 7.47 -25.62 7.41 28.25 v Eaton Vance Mgmt Net Ret -1.31 18.55 -19.27 23.33 67.01 Rank 32 56 71 27 78 1 MSCI Emg Mkts Net Ret -4.05 18.62 -18.17 19.19 79.02 Rank 53 55 58 58 25 174 City of Clearwater Employees Pension Fund September 30, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20 18% 16%- 14% 12% ]O% 8 8% __________ __________ ________ 6%------------ v 1 4%- -----------v 1 1 v1 _________ 2 0 v 1 -2 9113 6113 3113 ]2112 9112 High 16.03 17.58 14.00 12.75 12.88 1 st Qt 11.29 12.98 9.08 8.10 7.76 Median 8.87 10.57 6.41 5.68 5.12 3rd Qt 6.28 8.27 4.70 3.96 2.84 Low -0.70 2.15 0.54 0.43 -0.51 v Eaton Vance Mgmt Net Ret 0.54 4.54 3.86 5.68 5.79 Rank 92 89 82 50 42 1 MSCI Enng Mkts Net Ret -0.00 3.72 3.59 4.98 5.96 Rank 93 91 84 58 41 Eaton Vance Mgmt Value Added Analysis - Net of Fee 4.0 3.0 2.3 2.0 1.6 1.6 1.3 1.0% 0.5 0.4 0.5' U2 U U U 0% U6 04 14 13 -2.2 3.0%. -2.6 -4.0 -5.0 -6.0 -7.0 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.MSCI Emg Mkts - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 175 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 9/30/13 14.0 11.4 8.7 •� • • 6.2 ' W a� • 0 3.6 , . , .• • 1.0 % : " Median • • • .' `• • • Return N -1.5 , • -4.2 . • -6.8 • • -9.4 -12.0 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.6 24.4 26.2 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 7.45 3 20.69 77 1 MSCI EAFE 8.97 1 16.81 28 Median 0.87 19.05 5 Years Ending 9/30/13 18.0 16.0 . 14.0 ' • 12.0 . • % • •` 0 10.0 + , 8.0 • •;' • Median 1 •' • Return 6.0 • • • N • 4.0 ••. 2.0 • w 0.0 -2.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 5.91 81 28.40 43 1 MSCI EAFE 6.85 72 24.47 19 Median 8.11 28.87 176 City of Clearwater Employees Pension Fund Fixed Income Comp as of 9/30/13 Portfolio Performance 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Fixed Income Comp BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 Fixed Income Comp 0.64 -1.27 -0.63 3.54 6.98 5.08 6.68 BC Agg 0.57 -1.89 -1.68 2.86 5.41 4.59 6.94 Asset Growth(8000) Beginning Market Value 207,063 210,840 207,713 190,209 189,242 178,108 59,224 Net Contributions&Withdrawals 3 137 1,923 -2,730 -6,499 -6,499 -6,499 Gain/Loss+Income 1,295 -2,617 -11276 20,881 25,616 36,751 155,635 Ending Market Value 208,360 208,360 208,360 208,360 208,360 208,360 208,360 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 2.17 Finance 18.51 United States Treas Government 1.77 Government 19.30 FNMA 30yr Fwd Tba Mortgage 1.76 Industrials 19.58 United States Treas Government 1.48 Mortgage 31.76 United States Treas Government 1.44 Transportation 1.69 United States Treas Government 1.32 Utilities 3.52 FNMA Ci 15-Tba Oct Mortgage 1.29 Municipals 3.82 United States Treas Government 1.09 Foreign 1.50 United States Treas Government 1.04 Miscellaneous 0.34 FNMA Pool All 849 Mortgage 0.97 Holdings and allocations only include SMA accounts. 177 City of Clearwater Employees Pension Fund Fixed Income Comp as of 9/30/13 Asset Allocation($000) Other $23 0.01% Domestic Fixed Domestic Equity $190,558 91.46% $4 0.00% ❑Cash&Equiv $17,776 8.53% Risk/Return Analysis Periods from 12/87 to 9/13 Alpha 0.24 Beta 0.60 R-Squared 0.58 7.5 7.0 6.5 6.0 a� 5.5 5.0 4.5 4.0 3.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio F Fixed Income Comp 6.68 3.15 0.92 -0.12 1 BC Agg 6.94 4.10 0.77 T 91-Day Treasury Bill 3.79 1.25 0.00 Holdings and allocations only include SMA accounts. 178 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 9/13 12% 10% 8% 6% ---- ---- 1 ---- ---- ---- 4% ---- ---- 1 ---- ---- ---- 2% 1-- 0% -- ---- -2% 1-- -4% -6% -8% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 2.64 4.76 8.36 6.82 8.72 9.93 7.75 7.45 7.10 6.91 6.83 1st Qt 1.13 0.36 4.61 4.22 5.97 7.65 6.45 6.33 6.05 5.84 5.74 Median 0.70 -0.68 2.71 3.53 4.96 6.20 5.54 5.47 5.31 5.06 4.98 3rd Qt 0.39 -1.71 1.58 2.65 3.87 4.95 4.50 4.56 4.48 4.27 4.21 Low -0.55 -6.50 0.11 0.56 1.15 1.11 1.16 2.08 2.23 2.33 2.41 F Fixed Income Comp Net Ret 0.64 -0.63 3.16 3.54 4.86 6.98 5.90 5.78 5.56 5.31 5.08 Rank 55 48 40 49 52 35 39 39 40 39 45 1 BC Agg Net Ret 0.57 -1.68 1.68 2.86 4.16 5.41 5.12 5.12 4.94 4.70 4.59 Rank 61 74 72 68 67 64 62 61 62 63 65 179 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 50% 40% 30% 20% 10% ___ -- ---- 0% 9 00-10% ---- -20% -30% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 High 3.97 17.18 16.09 16.77 45.09 9.60 10.17 12.18 6.94 11.29 26.13 1st Qt 0.22 10.36 7.83 10.20 16.76 5.21 7.51 5.39 3.16 5.48 6.87 Median -1.14 6.83 6.14 7.27 9.88 1.87 6.53 4.59 2.60 4.44 4.62 3rd Qt -2.00 4.20 3.55 5.69 5.85 -6.93 5.05 4.14 2.07 3.29 3.67 Low -7.29 1.12 -0.28 0.51 -0.57 -25.82 2.16 2.59 1.33 1.34 1.69 F Fixed Income Comp Net Ret -1.27 6.53 5.94 7.37 12.37 2.54 5.94 5.05 2.59 3.93 3.77 Rank 51 53 53 48 40 46 61 31 50 65 73 1 BC Agg Net Ret -1.89 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 4.34 4.11 Rank 70 74 24 62 74 24 40 65 59 53 65 180 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 2 2 3 3 3 17 21 Positive Periods 3 2 10 9 17 17 86 82 Up Market Capture 1.65 1.04 1.21 0.90 Down Market Capture 0.78 0.61 0.61 0.36 Batting Average 1.00 0.75 0.70 0.50 Worst Quarter -2,13 -2,32 -2,13 -2,32 -2,13 -2,32 -2,54 -2,87 Best Quarter 0.65 0.57 2.32 3.82 5.72 4.57 5.72 7.96 Worst 4 Quarters -0,63 -1,68 -0,63 -1,68 -0,63 -1,68 -0,63 -3,23 Best 4 Quarters -0,63 -1,68 7.10 7.84 15.87 10.56 15.87 18.48 Standard Deviation 2.67 2.61 2.47 3.27 3.77 3.53 3.15 4.10 Beta 0.99 0.66 0.86 0.60 Alpha 0.26 0.40 0.56 0.24 R-Squared 0.97 0.73 0.64 0.58 Sharpe Ratio -0,27 -0,68 1.39 0.84 1.81 1.49 0.92 0.77 Treynor Ratio -0,73 5.24 7.91 4.85 Tracking Error 0.33 1.73 2.32 2.57 Information Ratio 3.24 0.36 0.64 -0,12 181 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 9/30/13 11.0 9.5 8.0 • 6.5 0 5.0 . W* �; • 3.5 •� • .. • Median ' Retum °N 2.0 A ASS 0.5 • ' -1.0 -2.5 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 3.54 49 2.47 25 1 BC Agg 2.86 68 3.27 49 Median 3.53 3.36 5 Years Ending 9/30/13 16.0 14.2 12.4 10.6 7.0 '• • • • Median 7�°� 5.2 �'� . • Return 3.4 1.5 • -0.2 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 6.98 35 3.77 39 1 BC Agg 5.41 64 3.53 31 Median 6.20 4.42 182 City of Clearwater Employees Pension Fund Dodge & Cox as of 9/30/13 Portfolio Performance 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 OM Dodge&Cox BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/29/04 Dodge&Cox 0.82 -0.46 0.47 4.15 7.50 5.33 BC Agg 0.57 -1.89 -1.68 2.86 5.41 4.56 Asset Growth(5000) Beginning Market Value 113,143 114,596 113,543 105,548 94,942 75,656 Net Contributions&Withdrawals -1 -3 -4 -5,011 -7,426 -7,426 Gain/Loss+Income 930 -522 533 13,534 26,555 45,841 Ending Market Value 114,071 114,071 114,071 114,071 114,071 114,071 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 3.97 Finance 21.83 United States Treas Government 2.70 Government 12.24 United States Treas Government 2.63 Industrials 21.28 FNMA Pool All 849 Mortgage 1.78 Mortgage 30.06 FNMA Pool A12688 Mortgage 1.58 Transportation 2.49 Xerox Corp Sr Nt 6.4 Industrials 1.56 Utilities 4.28 4136k Df Mortgage 1.50 Municipals 6.60 Aol Time Warner Inc Industrials 1.40 Foreign 1.21 Petrobras Intl Fin C Industrials 1.30 Miscellaneous 0.00 Citigroup Inc Sub Nt Finance 1.24 183 City of Clearwater Employees Pension Fund Dodge & Cox as of 9/30/13 Asset Allocation($000)i Domestic Fixed Cash&Equiv $111,245 97.52% In $2,826 2.48% Risk/Return Analysis Periods from 2/04 to 9/13 Alpha 0.31 Beta 0.83 R-Squared 0.57 5.5 5.0 4.5 4.0 a� 3.5 3.0 2.5 2.0 1.5 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio d Dodge&Cox 5.33 3.50 1.03 0.28 1 BC Agg 4.56 3.41 0.83 T 91-Day Treasury Bill 1.73 0.57 0.00 184 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 9/13 12% 10% 8% 6% --- --- 1 r--- 4% " --- --- 1 ---- ---- ---- 2% 1__ 00 00 0% -- --- -2% -4% -6% -6% -8% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Qtr Year Years Years Years Years Years Years Years Years High 2.64 4.76 8.36 6.82 8.72 9.93 7.75 7.45 7.10 6.91 1st Qt 1.13 0.36 4.61 4.22 5.97 7.65 6.45 6.33 6.05 5.84 Median 0.70 -0.68 2.71 3.53 4.96 6.20 5.54 5.47 5.31 5.06 3rd Qt 0.39 -1.71 1.58 2.65 3.87 4.95 4.50 4.56 4.48 4.27 Low -0.55 -6.50 0.11 0.56 1.15 1.11 1.16 2.08 2.23 2.33 d Dodge & Cox Net Ret 0.82 0.47 4.17 4.15 5.39 7.50 6.19 6.07 5.87 5.57 Rank 41 23 27 26 38 28 31 30 30 31 1 BC Agg Net Ret 0.57 -1.68 1.68 2.86 4.16 5.41 5.12 5.12 4.94 4.70 Rank 61 74 72 68 67 64 62 61 62 63 185 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 50% 40% 30% 20% 10% ----- ----- -1--- -}--- --- 0% - 00 00 === -10% ----- -20% -30% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 High 3.97 17.18 16.09 16.77 45.09 9.60 10.17 12.18 6.94 1st Qt 0.22 10.36 7.83 10.20 16.76 5.21 7.51 5.39 3.16 Median -1.14 6.83 6.14 7.27 9.88 1.87 6.53 4.59 2.60 3rd Qt -2.00 4.20 3.55 5.69 5.85 -6.93 5.05 4.14 2.07 Low -7.29 1.12 -0.28 0.51 -0.57 -25.82 2.16 2.59 1.33 d Dodge & Cox Net Ret -0.46 7.85 5.10 7.53 14.53 1.37 5.47 5.62 2.40 Rank 36 42 60 46 29 52 67 22 61 1 BC Agg Net Ret -1.89 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 70 74 24 62 74 24 40 65 59 186 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Core Fixed income Portfolios 9.5 9.0% 8.5 8.0 7.0% __________ 6.5% 6.0 5.5% 1 5.0% 45% a 4.0% 3.5% 1 3.0% 1_ 2.5 2.0% Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar 13 Dee 12 Sep 12 High 5.12 6.09 8.40 8.87 8.75 1 st Qt 4.01 4.83 7.06 7.75 7.56 Median 3.50 4.25 6.28 6.96 7.10 3rd Qt 2.99 3.81 5.81 6.47 6.54 Low 2.30 3.06 4.89 5.62 5.71 a Dodge&Cox Return 4.15 4.71 6.20 6.82 7.08 Rank 19 30 53 55 50 1 BC Agg Return 2.86 3.51 5.52 6.19 6.19 Rank 82 84 82 85 84 Dodge & Cox Value Added Analysis - Net of Fee 7.0%. 6.0,E 5.0%. 5.1' 4.0 3.0 23 2.0 5 1.4 1.0 0 8 U 6 4 03 O.O% 0:0 0.0 EM MM 0% -0-iO4 2 -2.0 -3.0 29 -4.0 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.BC Agg - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 187 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 2 1 3 2 3 8 11 Positive Periods 3 2 11 9 18 17 30 27 Up Market Capture 2.25 1.09 1.25 1.08 Down Market Capture 0.52 0.31 0.31 0.67 Batting Average 1.00 0.67 0.60 0.58 Worst Quarter -1,89 -2,22 -1,89 -2,22 -1,89 -2,22 -2,88 -2,44 Best Quarter 0.93 0.57 2.67 3.82 6.98 4.57 6.98 4.57 Worst 4 Quarters 0.47 -1,68 0.47 -1,68 0.47 -1,68 -0,26 -1,68 Best 4 Quarters 0.47 -1,68 8.00 7.84 17.78 10.56 17.78 10.56 Standard Deviation 2.70 2.61 2.39 3.27 3.94 3.53 3.77 3.55 Beta 0.97 0.46 0.70 0.83 Alpha 0.53 0.68 0.89 0.31 R-Squared 0.92 0.38 0.39 0.57 Sharpe Ratio 0.14 -0,68 1.69 0.84 1.86 1.48 0.95 0.79 Treynor Ratio 0.38 8.75 10.47 4.31 Tracking Error 0.48 2.62 3.30 2.69 Information Ratio 4.54 0.46 0.60 0.28 188 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 9/30/13 11.0 9.5 8.0 • 6.5 �.+ • 0 5.0 • ! • 3.5 • • • • •, • Median a ...• .' ' Return S • 0.5 • • -1.0 -2.5 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge&Cox 4.15 26 2.39 23 1 BC Agg 2.86 68 3.27 49 Median 3.53 3.36 5 Years Ending 9/30/13 16.0 14.2 12.4 10.6 � 8.8 •!ti , • � � � ter• • • • Median N 5.2 �' . • Return 3.4 , • 1.5 • -0.2 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge&Cox 7.50 28 3.94 43 1 BC Agg 5.41 64 3.53 31 Median 6.20 4.42 189 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 9/13 Portfolio BC Agg Total Number Of Securities 197 8,577 Total Market Value 111,245,092 16,719,529,639,936 Yield to Maturity 2.63 2.34 Time to Maturity 12.41 7.50 Current Coupon 5.15 3.36 Duration 5.16 5.52 Effective Convexity 0.37 0.08 Effective Duration 4.61 5.52 Effective Maturity 7.03 7.50 Yield to Maturity Time to Maturity Coupon 0- 1 18.3% 0- 1 8.2% 0- 3 15.4% 1 - 2 10.2% 1 - 3 12.8% 3 - 5 16.3% 2 - 3 15.6% 3 - 5 11.5% 5 - 7 51.9% 3 - 4 27.7% 5 - 7 9.8% 7 - 9 15.3% 4- 5 10.8% 7 - 10 12.2% 9 - 11 1.1% 5+ 17.4% 10+ 45.5% 11+ 0.0% Quality Duration Effective Duration GOVT 12.2 0- 1 8.2 0- 1 10.7 AAA 30.1 1 -3 21.2 1 - 3 31.8 AA 2.9 A 16.1 3 -4 22.4 3 - 4 17.7/%o %%% �r�l p,�„"vr'h f�y roi/l r l�✓��,�>/'f�� f s� , t BAA 34.2% 4- 6 17.0% 4- 6 14.5% BA 2.0% 6- 8 11.5% 6- 8 7.7% B 0.5% NR 2.0% 8+ 19.7% 8+ 17.60/0 190 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 9/30/13 NEENEENEENNEM Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 12.24 --- --- --- --- --- --- --- 12.24 Treasury 10.07 --- --- --- --- --- --- --- 10.07 Agency 2.17 --- --- --- --- --- --- --- 2.17 Corporate 0.85 1.76 9.21 33.16 2.02 0.50 --- 1.10 48.60 Industrial --- --- 5.99 14.26 1.02 --- --- --- 21.27 Utility --- --- --- 3.78 --- 0.50 --- --- 4.28 Finance 0.85 1.11 3.22 14.56 0.99 --- --- 1.10 21.83 Yankee --- 0.65 --- 0.55 --- --- --- --- 1.20 Transportation --- 0.42 1.03 1.05 --- --- --- --- 2.50 Mortgage 29.16 --- --- --- --- --- --- 0.90 30.06 GNMA --- --- --- --- --- --- --- 0.22 0.22 FHLMC 9.20 --- --- --- --- --- --- --- 9.20 FNMA 18.94 --- --- --- --- --- --- 0.68 19.62 Other Mortgage 1.03 --- --- --- --- --- --- --- 1.03 Municipals --- 0.75 5.85 --- --- --- --- --- 6.60 Cash --- --- --- --- --- Other --- --- --- --- --- Total 42.25 2.93 16.08 34.21 2.02 0.50 --- 2.00 100.00 191 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 9/13 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 21.09 10.16 2.75 1.40 0.29 0.08 0.36 Government 14.04 42.40 0.19 0.11 0.01 0.16 0.17 Industrials 19.51 11.81 0.65 0.53 0.02 -0,01 0.01 Mortgage 33.67 30.78 1.23 1.32 -0,03 0.02 -0,01 Transportation 2.42 0.40 0.81 0.45 0.01 -0,00 0.00 Utilities 2.02 2.05 1.05 0.13 0.02 0.00 0.02 Municipals 6.11 0.01 9.09 1.27 0.48 0.04 0.51 Foreign 1.14 2.37 2.55 0.87 0.02 -0,00 0.02 Miscellaneous 0.00 0.02 1.74 0.00 -0,00 -0,00 100.00 100.00 1.78 0.68 0.81 0.28 1.09 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 -0.94% [Actual Return 0.83%] - [Buy Hold Return 1.78% 192 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 9/30/13 Portfolio Performance 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co. BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/04 Western Asset Management Co. 0.41 -2.29 -1.98 2.88 6.26 4.99 BC Agg 0.57 -1.89 -1.68 2.86 5.41 4.70 Asset Growth(5000) Beginning Market Value 89,279 91,744 91,459 82,378 94,704 74,568 Net Contributions&Withdrawals -6 -10 -11 -62 -62 -62 Gain/Loss+Income 364 -2,097 -1,811 71321 -5,005 15,131 Ending Market Value 89,637 89,637 89,637 89,637 89,637 89,637 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 4.12 Finance 13.97 FNMA 30yr Fwd Tba Mortgage 4.10 Government 28.95 United States Treas Government 3.06 Industrials 17.25 FNMA Ci 15-Tba Oct Mortgage 3.00 Mortgage 34.07 United States Treas Government 2.53 Transportation 0.59 United States Treas Government 2.41 Utilities 2.48 FNMA 15yr Fwd Tba Mortgage 2.12 Municipals 0.00 FNMA 30yr Fwd Tba Mortgage 1.93 Foreign 1.89 United States Treas Government 1.80 Miscellaneous 0.80 GNMA Ii Sf 30-Tba Mortgage 1.73 193 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 9/30/13 Asset Allocation($000) Domestic Fixed Other $79,313 88.48% _$23 0.03% Cash&Equiv $10,302 11.49% Risk/Return Analysis Periods from 9/04 to 9/13 Alpha 0.02 Beta 1.07 R-Squared 0.92 5.5 5.0 4.5 4.0 a� 3.5 3.0 2.5 2.0 1.5 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio w Western Asset Management 4.99 3.73 0.86 0.25 1 BC Agg 4.70 3.37 0.87 T 91-Day Treasury Bill 1.76 1.00 0.00 194 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 9/13 12% 10% 8% 1 ---- 4% ---- ---- 1 ---- ---- ---- 2% �__ -2% -- -4% -6% -8% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Qtr Year Years Years Years Years Years Years Years Years High 2.64 4.76 8.36 6.82 8.72 9.93 7.75 7.45 7.10 6.91 1st Qt 1.13 0.36 4.61 4.22 5.97 7.65 6.45 6.33 6.05 5.84 Median 0.70 -0.68 2.71 3.53 4.96 6.20 5.54 5.47 5.31 5.06 3rd Qt 0.39 -1.71 1.58 2.65 3.87 4.95 4.50 4.56 4.48 4.27 Low -0.55 -6.50 0.11 0.56 1.15 1.11 1.16 2.08 2.23 2.33 w Western Asset Management Co. Net Ret 0.41 -1.98 2.01 2.88 4.28 6.26 5.47 5.39 5.19 4.99 Rank 74 80 65 67 63 49 51 54 54 52 1 BC Agg Net Ret 0.57 -1.68 1.68 2.86 4.16 5.41 5.12 5.12 4.94 4.70 Rank 61 74 72 68 67 64 62 61 62 63 195 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 50% 40% 30% 20% 10% ----- ----- 0% --- -10% ----- -20% -30% 9/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 High 3.97 17.18 16.09 16.77 45.09 9.60 10.17 12.18 6.94 1st Qt 0.22 10.36 7.83 10.20 16.76 5.21 7.51 5.39 3.16 Median -1.14 6.83 6.14 7.27 9.88 1.87 6.53 4.59 2.60 3rd Qt -2.00 4.20 3.55 5.69 5.85 -6.93 5.05 4.14 2.07 Low -7.29 1.12 -0.28 0.51 -0.57 -25.82 2.16 2.59 1.33 w Western Asset Management Co. Net Ret -2.29 5.07 7.23 7.09 9.24 3.92 6.51 4.66 2.77 Rank 81 64 36 52 53 38 50 46 41 1 BC Agg Net Ret -1.89 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 70 74 24 62 74 24 40 65 59 196 City of Clearwater Employees Pension Fund September 30, 2013 Performance Comparison Total Returns of Core Fixed income Portfolios 9.5 9.0% 8.5 8.0 7.0% __________ 6.5% ,x,______ 60% 1 1 5.5% 1 5.0% 4.5 4.0%4__________ 35% w 1 3.0% 2.5 2.0% Dee 10 Sep 10 Jun 10 Mar 10 Dee 09 Sep 13 Jun 13 Mar 13 Dee 12 Sep 12 High 5.12 6.09 8.40 8.87 8.75 1 st Qt 4.01 4.83 7.06 7.75 7.56 Median 3.50 4.25 6.28 6.96 7.10 3rd Qt 2.99 3.81 5.81 6.47 6.54 Low 2.30 3.06 4.89 5.62 5.71 wr Western Asset Management Co. Return 2.88 3.68 5.69 6.46 6.45 Rank 81 79 80 77 82 1 BC Agg Retu- 2.86 3.51 5.52 6.19 6.19 Rank 82 84 82 85 84 Western Asset Management Co. Value Added Analysis - Net of Fee 5.0,E 4.5 4.0 3.5 3.0 2.5 3 2.0 1.5% 1.0% 06 0.5%. U2 03 02 0.2 U3 0 1 0 1 0.0: 1 1 O.O 2 U 1 UI U1: 0.2 -O.5 {1 -1.5% 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 ® Quarterly Value Added vs.BC Agg - Cumulative Value Added - 2 Yr Rolling Avg(Annualized) 197 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 3 3 4 3 11 10 Positive Periods 2 2 9 9 16 17 25 26 Up Market Capture 0.92 1.01 1.14 1.08 Down Market Capture 1.10 1.01 1.01 1.19 Batting Average 0.25 0.50 0.60 0.58 Worst Quarter -2,45 -2,32 -2,45 -2,32 -2,45 -2,32 -2,45 -2,32 Best Quarter 0.41 0.57 2.94 3.82 5.22 4.57 5.22 4.57 Worst 4 Quarters -1,98 -1,68 -1,98 -1,68 -1,98 -1,6 -1,98 -1,6 Best 4 Quarters -1.98 -1,68 7.37 7.84 14.60 10.56 14.60 10.56 Standard Deviation 2.67 2.61 3.05 3.27 3.90 3.53 3.73 3.37 Beta 1.03 0.92 1.05 1.07 Alpha -0,06 0.06 0.14 0.02 R-Squared 0.99 0.96 0.90 0.92 Sharpe Ratio -0,78 -0,68 0.91 0.84 1.56 1.49 0.86 0.87 Treynor Ratio -2,02 3.03 5.81 3.00 Tracking Error 0.24 0.67 1.23 1.14 Information Ratio -1.26 0.01 0.67 0.25 198 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 9/30/13 11.0 9.5 a7 8.0 • 6.5 �' • 0 5.0 • ! •: ' 3.5 •�• •' • • • .• • Median 7� ..N . Return 2.0 •' N . ��.i S 0.5 • • -1.0 -2.5 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Western Asset Management Co. 2.88 67 3.05 38 1 BC Agg 2.86 68 3.27 49 Median 3.53 3.36 5 Years Ending 9/30/13 16.0 14.2 12.4 10.6 8.8 .•!ti • • s � • N 7.0 .y; •. Median • • • 7�°� 5.2 W 7 . • Return 3.4 • 1.5 • -0.2 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Western Asset Management Co. 6.26 49 3.90 42 1 BC Agg 5.41 64 3.53 31 Median 6.20 4.42 199 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 9/13 Portfolio BC Agg Total Number Of Securities 348 8,577 Total Market Value 79,312,793 16,719,530,000,000 Yield to Maturity 2.82 2.34 Time to Maturity 16.44 7.50 Current Coupon 3.76 3.36 Duration 6.97 5.52 Effective Convexity 0.53 0.08 Effective Duration 6.38 5.52 Effective Maturity 9.89 7.50 Yield to Maturity Time to Maturity Coupon 0- 1 11.2% 0- 1 5.6% 0- 3 37.0% 1 - 2 14.3% 1 - 3 7.9% 3 - 5 32.6% 2 - 3 32.5% 3 - 5 9.4% 5 - 7 25.9% 3 - 4 28.4% 5 - 7 8.6% 7 - 9 3.4% 4- 5 6.3% 7 - 10 16.0% 9 - 11 0.9% 5+ 7.2% 10+ 52.4% 11+ 0.1% Quality Duration Effective Duration l3 ''� sl-- E- 5 ? GOVT 34.5% 0- 1 5.5% 0- 1 6.5% �'✓ �t /� r >f p �f r r��'�=lii� � � s�/�f�r�rjr�rjr�rjr�rjr�! AAA 29.1% rs r �. /i�t r' s i 1 -3 10.0% 1 - 3 15.7% A 14.3% 3 -4 17.8% 3 - 4 19.200 BAA 17.2% 4- 6 22.1% 4- 6 21.9% BA 0.3% 6- 8 19.4% 6- 8 13.6% B 0.0% NR 1.6% 8+ 25.2% 8+ 23.1% 200 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 9/30/13 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 28.20 0.25 0.09 0.41 --- --- --- --- 28.95 Treasury 23.18 --- --- --- --- --- --- --- 23.18 Agency 5.02 0.25 0.09 0.41 --- --- --- --- 5.77 Corporate 1.84 2.22 14.18 16.26 0.31 0.01 --- 0.78 35.60 Industrial 1.08 0.56 7.19 8.42 --- --- --- --- 17.25 Utility --- --- 0.79 1.70 --- --- --- --- 2.49 Finance --- 0.89 6.21 5.77 0.31 0.01 --- 0.78 13.97 Yankee 0.76 0.76 --- 0.36 --- --- --- --- 1.88 Transportation --- 0.05 --- 0.54 --- --- --- --- 0.59 Mortgage 33.57 0.50 --- --- --- --- --- --- 34.07 GNMA 7.87 --- --- --- --- --- --- --- 7.87 FHLMC 3.36 --- --- --- --- --- --- --- 3.36 FNMA 17.97 --- --- --- --- --- --- --- 17.97 Other Mortgage 4.37 0.50 --- --- --- --- --- --- 4.87 Municipals --- --- --- --- --- --- --- --- --- Cash --- --- --- --- --- Other --- --- --- --- --- --- --- 0.80 0.80 Total 63.61 3.03 14.27 17.20 0.31 0.01 --- 1.57 100.00 201 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 9/13 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 14.33 10.16 1.39 1.40 -0,€10 0.03 0.03 Government 24.21 42.40 -1,05 0.11 -0,28 0.10 -0,18 Industrials 19.05 11.81 0.52 0.53 -0,00 -0,01 -0,01 Mortgage 37.71 30.78 1.12 1.32 -0,03 0.04 -0,03 Transportation 0.62 0.40 1.93 0.45 0.01 -0,00 0.01 Utilities 1.29 2.05 -0,43 0.13 -0,01 0.00 -0,00 Municipals 0.00 0.01 0.00 1.27 -0,00 -0,00 -0,00 Foreign 1.96 2.37 0.54 0.87 -0,01 -0,00 -0,01 Miscellaneous 0.83 0.02 1.74 0.00 0.01 0.01 100.00 100.00 0.48 0.68 -0,36 0.18 -0,19 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 -0.07% [Actual Return 0.41%] - [Buy Hold Return 0.48% 202 City of Clearwater Employees Pension Fund Real Estate Comp as of 9/30/13 Portfolio Performance 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 ML JUL -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 EM Real Estate Comp Policy Index Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Real Estate Comp -0.66 4.69 6.19 10.84 5.15 2.95 Policy Index -0.70 5.45 8.01 13.32 5.50 3.76 Asset Growth(5000) Beginning Market Value 81,151 76,997 76,389 60,712 33,863 19,347 Net Contributions&Withdrawals -492 -515 -993 -1,938 -1,938 -1,938 Gain/Loss+Income -535 3,641 4,728 21,350 48,199 62,715 Ending Market Value 80,123 80,123 80,123 80,123 80,123 80,123 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 11.53 Energy 0.00 Prologis Inc Financials 7.31 Materials 0.00 Equity Residential P Financials 7.00 Industrials 0.00 Hcp Inc Financials 5.50 Consumer Discretionary 0.00 Public Storage Inc Financials 5.49 Consumer Staples 0.00 Avalonbay Cmntys Inc Financials 4.68 Health Care 0.00 Health Care Reit Inc Financials 4.17 Financials 100.00 Macerich Co Financials 4.02 Information Technology 0.00 Apartment Invt&Mgm Financials 4.00 Telecom Services 0.00 Ventas Inc Financials 3.97 Utilities 0.00 203 City of Clearwater Employees Pension Fund Real Estate Comp as of 9/30/13 Asset Allocation($000) Domestic Equity $43,269 54.00% 40 Cash&Equiv $410 0.51% Real Estate $36,444 45.48% Risk/Return Analysis Periods from 4/08 to 9/13 Alpha -0.15 Beta 0.99 R-Squared 0.99 4.0 3.5 3.0 R 2.5 a� 2.0 1.5 1.0 0.5 0.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio R Real Estate Comp 2.95 31.12 0.09 -0.24 1 Policy Index 3.76 31.44 0.11 T 91-Day Treasury Bill 0.30 0.18 0.00 204 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 9/13 25% 20% 15% 1 R ------ R �- -------- 10 1 5% ------- 0% -1----- ------ -5 -10% -15% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 8.07 17.83 20.82 19.56 17.53 9.65 1st Qt 3.79 12.80 17.47 14.29 13.14 5.61 Median 2.53 10.02 11.77 11.65 9.88 0.73 3rd Qt 0.29 5.85 7.73 8.50 5.06 -2.96 Low -3.01 -0.93 -0.75 -0.08 -4.13 -12.86 R Real Estate Comp Net Ret -0.66 6.19 13.23 10.84 16.26 5.15 Rank 80 72 39 56 14 28 1 Policy Index Net Ret -0.70 8.01 16.39 13.32 16.61 5.50 Rank 81 65 27 32 10 26 205 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% 1 20% 1 R --- - ----- 1 10% ------ ---------- 0% ------ -------- -10% ---------- -20% -30% -40% -50% -60% -70% 9/30/13 YTD 2012 2011 2010 2009 High 15.76 30.19 28.99 30.76 37.36 1st Qt 10.32 17.60 16.67 18.42 -4.71 Median 7.23 11.49 11.80 13.91 -28.27 3rd Qt 3.38 5.97 2.69 2.50 -32.49 Low -1.21 -5.75 -16.47 -26.08 -61.97 R Real Estate Comp Net Ret 4.69 11.69 8.85 30.51 24.68 Rank 62 48 59 5 13 1 Policy Index Net Ret 5.45 15.41 11.62 24.96 29.20 Rank 58 33 50 12 11 206 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 2 2 5 5 5 5 Positive Periods 3 3 10 10 15 15 16 16 Up Market Capture 0.79 0.85 0.97 0.96 Down Market Capture 0.95 0.99 0.99 0.99 Batting Average 0.50 0.25 0.45 0.43 Worst Quarter -0,66 -0,70 -8,90 -8,94 -37,93 -46,46 -37,93 -46,46 Best Quarter 4.26 5.85 9.65 11.30 33.98 35.93 33.98 35.93 Worst 4 Quarters 6.23 8.01 6.21 7.43 -29,65 -29,31 -45,85 -45,65 Best 4 Quarters 6.23 8.01 20.74 25.41 118.01 115.40 118.01 115.40 Standard Deviation 4.07 5.78 9.59 10.41 34.45 34.53 33.58 33.66 Beta 0.69 0.91 0.99 0.99 Alpha 0.16 -0,30 -01,68 -0,15 R-Squared 0.94 0.99 0.99 0.99 Sharpe Ratio 1.50 1.37 1.12 1.27 0.14 0.15 0.15 0.17 Treynor Ratio 8.83 11.78 5.02 5.22 Tracking Error 2.12 1.42 3.03 3.04 Information Ratio -0,83 -1.64 -0,14 -0,24 207 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 9/30/13 35.0 30.5 ;E • 26.0 21.5 0 17.0 • • • f 12.5 • 1 •• Median 8.0 • • - • • . = • • • Return 3.5 ' -1.0 • • -5.5 • ' . •,• • -10.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 10.84 56 9.59 55 1 Policy Index 13.32 32 10.41 58 Median 11.65 8.64 5 Years Ending 9/30/13 20.0 15.0 10.0 • • ..r 0 0.0 • Median • •.' Return N -5.0 • • •• • -10.0 -15.0 -20.0 0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 5.15 28 34.45 90 1 Policy Index 5.50 26 34.53 91 Median 0.73 17.26 208 City of Clearwater Employees Pension Fund Security Capital as of 9/30/13 Portfolio Performance 14.0 12.0 10.0 8.0 6.0 4.0 2.0 ION ION 0.0 -2.0 -4.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Security Capital Wilshire RESI Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Security Capital -3.22 2.64 4.75 11.21 5.36 3.14 Wilshire RESI -2.80 2.93 5.47 12.43 5.49 3.68 Asset Growth(5000) Beginning Market Value 45,132 42,557 41,698 60,712 33,863 19,347 Net Contributions&Withdrawals 0 -1 -1 -30,811 -30,811 -30,811 Gain/Loss+Income -1,452 1,123 1,982 13,779 40,628 55,144 Ending Market Value 43,680 43,680 43,680 43,680 43,680 43,680 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 11.53 Energy 0.00 Prologis Inc Financials 7.31 Materials 0.00 Equity Residential P Financials 7.00 Industrials 0.00 Hcp Inc Financials 5.50 Consumer Discretionary 0.00 Public Storage Inc Financials 5.49 Consumer Staples 0.00 Avalonbay Cmntys Inc Financials 4.68 Health Care 0.00 Health Care Reit Inc Financials 4.17 Financials 100.00 Macerich Co Financials 4.02 Information Technology 0.00 Apartment Invt&Mgm Financials 4.00 Telecom Services 0.00 Ventas Inc Financials 3.97 Utilities 0.00 209 City of Clearwater Employees Pension Fund Security Capital as of 9/30/13 Asset Allocation($000) ❑Cash&Equiv $410 0.94% Domestic Equity $43,269 99.06% Risk/Return Analysis Periods from 4/08 to 9/13 Alpha -0.10 Beta 0.99 R-Squared 0.99 4.0 3.5 3.0 S 2.5 a� 2.0 1.5 1.0 0.5 0.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio s Security Capital 3.14 32.60 0.09 -0.20 1 Wilshire RESI 3.68 32.90 0.10 T 91-Day Treasury Bill 0.30 0.18 0.00 210 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 9/13 25% 20% s-1----- 15% s 10% 5% -3----- ------ 3-9------ 0% ------ -5 -10% -15% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 8.07 17.83 20.82 19.56 17.53 9.65 1st Qt 3.79 12.80 17.47 14.29 13.14 5.61 Median 2.53 10.02 11.77 11.65 9.88 0.73 3rd Qt 0.29 5.85 7.73 8.50 5.06 -2.96 Low -3.01 -0.93 -0.75 -0.08 -4.13 -12.86 s Security Capital Net Ret -3.22 4.75 17.07 11.21 16.55 5.36 Rank 96 83 26 54 11 27 1 Wilshire RESI Net Ret -2.80 5.47 18.17 12.43 16.59 5.49 Rank 91 80 21 40 11 26 211 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% 1 20% s 10% ---------- 1 ---------- s 0% --1------ ------ ---------- -10% ---------- -20% -30% -40% -50% -60% -70% 9/30/13 YTD 2012 2011 2010 2009 High 15.76 30.19 28.99 30.76 37.36 1st Qt 10.32 17.60 16.67 18.42 -4.71 Median 7.23 11.49 11.80 13.91 -28.27 3rd Qt 3.38 5.97 2.69 2.50 -32.49 Low -1.21 -5.75 -16.47 -26.08 -61.97 s Security Capital Net Ret 2.64 16.22 6.86 31.62 24.68 Rank 82 29 66 4 13 1 Wilshire RESI Net Ret 2.93 17.55 8.56 29.12 29.20 Rank 81 25 61 7 11 212 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 5 Years Ending 9/30/13 20.0 15.0 10.0 • 5.0 • 0 0.0 4• • Median a • ..• '•: Return 5.0 • t • •• -10.0 . `• -15.0 -20.0 0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 5.36 27 35.67 91 1 Wilshire RESI 5.49 26 35.77 92 Median 0.73 17.26 5 Years Ending 9/30/13 20.0 15.0 10.0 • 5.0 • 0 0.0 4• • Median • ..• '•: : Return -5.0 • t • •• -10.0 . `• -15.0 -20.0 0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 5.36 27 35.67 91 1 Wilshire RESI 5.49 26 35.77 92 Median 0.73 17.26 213 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 9/30/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 7 7 7 7 Positive Periods 2 2 8 8 13 13 14 14 Up Market Capture 0.88 0.94 0.98 0.97 Down Market Capture 0.91 1.02 0.99 0.99 Batting Average 0.25 0.08 0.30 0.29 Worst Quarter -3,22 -2,86 -15,51 -15,68 -37,93 -46,46 -37,93 -46,46 Best Quarter 6.67 7.41 14.90 15.40 33.98 35.93 33.98 35.93 Worst 4 Quarters 4.75 5.47 0.35 1.76 -29,65 -29,31 -45,85 -45,65 Best 4 Quarters 4.75 5.47 30.83 32.40 118.01 115.40 118.01 115.40 Standard Deviation 8.43 9.14 15.49 15.57 35.67 35.77 34.76 34.87 Beta 0.91 0.99 0.99 0.99 Alpha -0,06 - 1,26 -0,03 -0,10 R-Squared 0.98 1.00 0.99 0.99 Sharpe Ratio 0.55 0.59 0.72 0.79 0.15 0.15 0.15 0.17 Treynor Ratio 5.10 11.19 5.22 5.41 Tracking Error 1.38 0.79 2.56 2.60 Information Ratio -0,53 -1.42 -0,68 -0,26 214 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 9/30/13 Portfolio Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 OM Multi Employer Property Trust NCREIF ODCE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/10 Multi Employer Property Trust 3.53 8.40 8.27 10.33 10.33 NCREIF ODCE 3.56 10.44 13.04 14.27 14.27 Asset Growth($000) Beginning Market Value 25,942 24,778 24,807 0 0 Net Contributions&Withdrawals 0 0 0 20,000 20,000 Gain/Loss+Income 917 2,081 2,052 6,859 6,859 Ending Market Value 26,859 26,859 26,859 26,859 26,859 215 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 9/30/13 Asset Allocation($000) Real Estate $26,859 100.00% Risk/Return Analysis Periods from 9/10 to 9/13 Alpha -0.80 Beta 0.97 R-Squared 0.75 16.0 14.0 12.0 10.0 8.0 N 6.0 4.0 2.0 0.0 -2.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Multi Employer Property 10.33 2.56 3.99 -2.55 1 NCREIF ODCE 14.27 1.69 8.38 T 91-Day Treasury Bill 0.10 0.03 0.00 216 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 9/13 22% 20% 18% ------------ 16% 14% ----0------- 12% ---a------- 0 10% M 8% ------------ 6% 4% 2% 0% --------------- -2% -4% Last Last Last 2 Last 3 Qtr Year Years Years High 8.07 17.83 20.82 19.56 1st Qt 3.79 12.80 17.47 14.29 Median 2.53 10.02 11.77 11.65 3rd Qt 0.29 5.85 7.73 8.50 Low -3.01 -0.93 -0.75 -0.08 Multi Employer Property Trust Net Ret 3.53 8.27 7.86 10.33 Rank 31 65 74 61 O NCREIF ODCE Fund Index Net Ret 3.56 13.04 12.32 14.27 Rank 29 22 43 25 217 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 35% 30% 25% 20% ------------ 15% --- 0------- 10% —.----o M M 5% ---------- 0% -5% -10% -15% -20% 9/30/13 YTD 2012 2011 High 15.76 30.19 28.99 1st Qt 10.32 17.60 16.67 Median 7.23 11.49 11.80 3rd Qt 3.38 5.97 2.69 Low -1.21 -5.75 -16.47 Multi Employer Property Trust Net Ret 8.40 4.70 12.99 Rank 40 80 44 O NCREIF ODCE Fund Index Net Ret 10.44 10.94 15.99 Rank 23 55 26 218 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 9/30/13 Portfolio Performance 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 OM Molpus Woodlands Group NCREIF Timberland Index Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 6/30/11 Molpus Woodlands Group 0.00 7.98 7.82 2.88 NCREIF Timberland Index 1.05 3.55 9.68 5.06 Asset Growth($000) Beginning Market Value 6,700 6,205 6,651 111 Net Contributions&Withdrawals -491 -491 -928 5,576 Gain/Loss+Income 0 495 486 521 Ending Market Value 6,208 6,208 6,208 6,208 219 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 9/30/13 Asset Allocation($000) Real Estate IM $6,208 100.00% Risk/Return Analysis(Number of returns<12) Periods from 6/11 to 9/13 Alpha N/A Beta N/A R-Squared N/A 5.5 5.0 4.5 4.0 3.5 I* 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Molpus Woodlands Group 2.88 5.49 0.51 -0.33 1 NCREIF Timberland Index 5.06 4.08 1.22 T 91-Day Treasury Bill 0.08 0.02 0.00 220 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 9/13 20% 18% 16% 14% 12% ------------ 10% ------------ 8% 0, M M M ------------ 6% 4% 2% 1 0% 1 ------------ -2% -' -4% -6% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 8.07 13.21 15.76 17.83 1st Qt 3.79 7.17 10.32 12.80 Median 2.53 4.34 7.23 10.02 3rd Qt 0.29 -0.73 3.38 5.85 Low -3.01 -4.47 -1.21 -0.93 M Molpus Woodlands Group Net Ret 0.00 7.86 7.98 7.82 Rank 77 19 43 66 1 NCREIF Timberland Index Net Ret 1.05 1.99 3.55 9.68 Rank 68 64 74 52 221 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 35% 30% ol 25% 20% ------------ 15% 10% ` ------------ 1 5% ------------ 0% -5% -10% 9/30/13 YTD 2012 High 15.76 30.19 1st Qt 10.32 17.60 Median 7.23 11.49 3rd Qt 3.38 5.97 Low -1.21 -5.75 M Molpus Woodlands Group Net Ret 7.98 0.77 Rank 43 89 1 NCREIF Timberland Index Net Ret 3.55 7.75 Rank 74 70 222 City of Clearwater Employees Pension Fund Hancock as of 9/30/13 Portfolio Performance 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 Hancock NCREIF Timberland Index Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 5/31/12 Hancock 0.00 -2.35 5.72 3.84 NCREIF Timberland Index 1.05 3.55 9.68 8.27 Asset Growth($000) Beginning Market Value 3,377 3,458 3,232 1,263 Net Contributions&Withdrawals 0 -23 -64 1,938 Gain/Loss+Income 0 -58 208 175 Ending Market Value 3,377 3,377 3,377 3,377 223 City of Clearwater Employees Pension Fund Hancock as of 9/30/13 Asset Allocation($000) Real Estate $3,377 100.00% Risk/Return Analysis(Number of returns<12) Periods from 6/12 to 9/13 Alpha N/A Beta N/A R-Squared N/A 9.0 8.0 7.0 6.0 5.0 N 4.0 3.0 2.0 1.0 0.0 1 Z11 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio H Hancock 3.84 7.54 0.49 -0.91 1 NCREIF Timberland Index 8.27 5.14 1.59 T 91-Day Treasury Bill 0.11 0.02 0.00 224 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 9/13 20% 18% 16% 14% 12% ------------ 10% ------------ 8 6% 4% 2% 1 0% 1 -2% -4% -6% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 8.07 13.21 15.76 17.83 1st Qt 3.79 7.17 10.32 12.80 Median 2.53 4.34 7.23 10.02 3rd Qt 0.29 -0.73 3.38 5.85 Low -3.01 -4.47 -1.21 -0.93 Hancock Net Ret 0.00 -0.31 -2.35 5.72 Rank 77 72 95 78 1 NCREIF Timberland Index Net Ret 1.05 1.99 3.55 9.68 Rank 68 64 74 52 225 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 18% 16% 14% 12% 10% ------------ 8% 6% 4% 2% 0% ki -2% -4% 9/30/13 YTD High 15.76 1st Qt 10.32 Median 7.23 3rd Qt 3.38 Low -1.21 Hancock Net Ret -2.35 Rank 95 1 NCREIF Timberland Index Net Ret 3.55 Rank 74 226 City of Clearwater Employees Pension Fund Appendix 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. 227 City of Clearwater Employees Pension Fund Appendix 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, 228 City of Clearwater Employees Pension Fund Appendix 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 BB 1 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 229 City of Clearwater Employees Pension Fund Appendix 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. 230 City of Clearwater Employees Pension Fund Appendix Disclaimer Page 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. 231