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EMPLOYEES PENSION PLAN - PERFORMANCE REVIEW - FOURTH QUARTER CAPTRus , , 1; , //// //l////////////ll//////////// l/ /////// / CITY OF CLEARATER EMPLOYEES PENSION PLAN PERFORMANCE REVIEW DECEMBER 31, 2013 TABLE OF CONTENTS Important Disclaimer Information Capital Markets Review 2 Fund Overview 3 Performance Review Total Fund 4 Domestic Equity 5 International Equity 6 Fixed Income 7 Real Estate 8 Appendix 9 ................................................................................................................................................................. 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 s 1 ® s 1 ......... . Index QTR YTD 1 Yr 3 Yr 5 Yr 14 Yr Domestic Fixed Income 3 month T-Bill 0.02% 0.07% 0.07% 0.10% 0.12% 1.68% Barclays Capital 1-3 year Gov't 0.07% 0.37% 0.37% 0.81% 1.25% 2.67% Barclays Capital Interm Gov't -0.42% -1.25% -1.25% 2.14% 2.20% 3.74% Barclays Capital Interm Credit 0.68% -0.17% -0.17% 4.38% 7.27% 4.87% Barclays Capital Interm Govt/Cred -0.02% -0.86% -0.86% 2.91% 3.96% 4.09% Barclays Capital Aggregate Bond -0.14% -2.02% -2.02% 3.26% 4.44% 4.55% Domestic Equity Standard & Poor's 500 10.51% 32.39% 32.39% 16.18% 17.94% 7.41% Dow Jones Industrial Average 10.22% 29.65% 29.65% 15.71% 16.74% 7.44% Wilshire 5000 Total Market 10.11% 33.07% 33.07% 15.96% 18.58% 7.97% Wilshire US REIT -0.83% 1.86% 1.86% 9.37% 16.69% 8.38% Russell 1000 Growth - Large Cap 10.44% 33.48% 33.48% 16.45% 20.39% 7.83% Russell 1000 Value - Large Cap 10.01% 32.53% 32.53% 16.06% 16.67% 7.58% Russell NEdcap Growth 8.23% 35.74% 35.74% 15.63% 23.37% 9.77% Russell NEdcap Value 8.56% 33.46% 33.46% 15.97% 21.16% 10.25% Russell 2000 Growth - Small Cap 8.17% 43.30% 43.30% 16.82% 22.58% 9.41% Russell 2000 Value - Small Cap 9.30% 34.52% 34.52% 14.49% 17.64% 8.61% International Equity MSCI SAFE 5.75% 23.29% 23.29% 8.66% 12.96% 7.39% MSCI World 8.11% 27.37% 27.37% 12.13% 15.68% 7.56% MSCI EM 1.86% -2.27% -2.27% -1.74% 15.15% 11.52% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg 3.06% 8.30% 8.30% 7.14% 8.49% 5.40% 40% S&P 500 / 60% Barclays Agg 4.12% 11.74% 11.74% 8.43% 9.84% 5.69% 50% S&P 500 / 50% Barclays Agg 5.19% 15.18% 15.18% 9.72% 11.19% 5.98% 60% S&P 500 / 40% Barclays Agg 6.25% 18.62% 18.62% 11.01% 12.54% 6.26% 70% S&P 500 / 30% Barclays Agg 7.32% 22.06% 22.06% 12.31% 13.89% 6.55% 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 fixture performance. 3 s 1 ® s 1 ......... . Capital Markets Overview Equity markets began the fourth quarter at near-record levels, but faced uncertainty over budgetary funding, a looming government shutdown, and speculation the Fed would begin to slow the amount of stimulus through reductions to its bond buying program. Considering the market's advance, a pause seemed in order. However, economic news released in November indicated the U.S. economy grew at its fastest pace of the year during the third quarter. GDP for the third quarter, reported during the fourth quarter, was a robust 4.1%. Housing continued to rally, and consumer confidence continued to improve supported by prospects of a better employment environment. Earnings, not mentioned for much of the year, added to investor confidence as 73% of S&P 500 companies exceeded earnings expectations. For the quarter, the S&P 500 Index's (S&P 500) total return was up 10.5%. The S&P 500 finished 2013 with a total return of 32.4%, its best year since 1997. Returns were broad based as all ten S&P sectors recorded double- digit gains for the year. Consumer Discretionary led all sectors with a 43.1% gain, followed by Health Care's 41.5% return. The Dow Jones Industrial Average (DJIA) posted a 10.2% total return for the quarter and was up 29.7% for a year in which it set 52 new record closes. The Nasdaq Composite led the major indices with an 11.1% total return in the fourth quarter and an impressive 40.1% for the year. Closing out the U.S. markets the S&P 400 Mid Cap Index's total return was up 8.3% for the quarter and 33.4% for the year The S&P 600 Small Cap Index's total return was up 9.8% for the quarter and 41.3% for the year. Overseas, European markets remained mixed this quarter. Economic growth continued to sputter for most of the region and GDP growth was not as robust as investors would have liked. For its part, the European Central Bank (ECB) reduced interested rates in an attempt to support more growth. The continued divergence of the bloc's economic growth prospects caused Standard's and Poor's to reduce the long-term credit rating of the European Union to AA+ from AAA in December. Germany's manufacturing growth was a bright spot and helped propel Germany's DAX Index to a 25.5% gain for the year. France's CAC 40 was up 22.2%. Asian markets were also mixed this quarter. Japan's Prime Minister Shinzo Abe has led an economic overhaul in his country. Following closely the monetary easing policies of the U.S. resulted in the best returns for Japanese equities in more than 40 years. The Nikkei 225 Index advanced 59.3% in 2013. Recurring liquidity concerns in China took precedence over stabilizing manufacturing data and the government's optimistic growth forecasts. Locally, China's Shanghai Composite lost 4.7% in December, reversing modest gains made earlier in the quarter, and finished the year with a 3.8% loss. From a broader perspective, the MSCI China Index by comparison was up 3.8% for the quarter, and 4.0% for the year. 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 fixture performance. 4 s 1 ® s 1 ......... . Capital Markets Overview After back-to-back monthly gains leading into the quarter, U.S. Treasury and Corporate debt declined leading to negative returns in November and December. Bond prices declined on speculation the Fed would begin to taper its bond buying program before the end of the year. Rates for the 10-year Treasury note increased 36 basis points this quarter and 124 basis points for the year, closing the year yielding 3.01%. This was the first time the benchmark note reported a yield above 3.00% since 2011. Losses came amid signs the U.S. economy continued to improve and the Federal Reserve would soon change its accommodative stance and begin to reduce the amount bond purchases. After consecutive losses to start the quarter, commodities trimmed losses in December. The Reuters/Jefferies CRB Index lost 1.88% for the quarter, and was down 5.03% for the year. Gold continued its decline. Gold lost 9.5% for the quarter and 28.3% for the year. This was gold's largest annual lost in more than 30 years. Copper improved during the fourth quarter, up 2.4%, but was down 6.9% for the year. The U.S. Dollar rallied for most of the quarter,but gave up its gains in December, losing .80% for the month and .27% for the quarter. Domestic markets hovered near all-time highs as all averages saw historically positive returns ➢ Each segmentation of the major Russell indices finished 2013 up more than 30%. ➢ Small caps and growth stocks were the top performers of the year with the Russell 2000 Growth up 43.3%. ➢ The Russell Midcap index had its best year since 2009, the Russell 2000 had its best year since 2003, and the Russell 1000 had its best year since 1995. Fourth Quarter 2013 Domestic Equity Returns Domestic Equity Returns Value Growth Value Growth 8.6 8.4 8.2 °0 9.3 8.7 8.2 °o III L -10 -5 0 5 10 -10 -5 0 5 10 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,FactSet,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 fixture performance. 5 s 1 ® s 1 ......... . The S&P 500 rose 32.39% in 2013 for its best return since 1997 ➢ Industrials and IT led for the quarter while Consumer Discretionary was the leader for the year. ➢ Defensive sectors trailed the overall average as the Energy, Telecom, and Utilities lagged for both the quarter and the year. S&P 500 Fourth Quarter 2013 Sector S&P 500 2013 Sector Returns Returns 11 11 J)1J))11111))111111111111111I11��JJJ��JJJ 13.53zo d at 111DJ1)1111111)11111)1J)))1)1)11))J11J1)�1�J��)J1�J�J A ®$ soa sumel �1DJlI>I111��l�ll11111��1��1J1)11J11111111JJJJJJJJJJJJJJJ�JJJJJJ)J11JJ�JJJ.JJJIJJJJ))JJJJJJJJJJJJJJJJJJ ��11)J11J1J)1J 11111111)11)JJIJJJJ1J1J11JJJJJ)J)JJJ1)Jl J,�JJ ��IIIIII �1111��11111��1��JJJJJJJJJJJJJJJJJJJJJJIJJ1J11JJJJJJ11J11J11J11J11J11J11J11J11J11J1J1J1J1J1J1J1J1J1J1J1J1J1J�� 1 S Technology 41a46 Health Care 1)1)X11111)11�111J I1D111111111111111I1111111ID11111111111D111111I1ID111111111111JlJllll)1J�IJD111111��111)11�1J 10$1 scredonar � 01111111111I1��1111111111111111111JJlJllll �1JJJ)1111111111111JJJJ�JJJJJJ 40.68 I"d sat ls �� 1111111111111111111111111111111111111111111111111��1�1J1J1J1JJJJJ)JJJJ�J��JJJJJJ' 10.66 Matenals �J111111111�J11�1�JJJ9J111J1191J911�JJJJ�J�J�JJJJJJ 35 63 Finandals 10.51 S&P Soo 32.34 S&P Soo U 11I�11111111)1111111)1111111111I1I1111111111J 1111111)11111�J1�11�IJJ�1111IJJ11)11111J1JJJJaJJJJJJJJJJIJJJJJ)JJ)JJ�JJ 13 n I >1��11�)111111)1J11111111�J1111)1JJJJJ,, Techn logy ��' 28.43 Technology If11I1111111I11D11111111111111C111111II1I11111111I11111��)�)��1JJ�J�J��J�J 10.13 Health Care )1>y��1II1D11I111111,111J11126,14 Consumer Staples 111111111111111))))1111111111111111111111111111��1�11111111111111111111111�1�11�1111111�� 1 8.66 Consumer Staples � 25.64 Matertals 8.35 Energy 25.07 Energy 5,47 Telecommunicabons �J1J�1��1111111,�11�� 13.21 Ushoes 11111111111��1�� 2.74 ubades 11.47 Tellecomm,unicamons The S&P 500 Best and Worst Performing Subsectors S&P 500 Oil & Gas Refining & Marketing 39.75% S&P 500 Aluminum 31.32% S&P 500 Office Services & Supplies 29.14% S&P 500 Trucking 24.22% S&P 500 Health Care Distributors 23.23% IIIIIII�II III� IIIIIIII III� III IIIII� � � Iltlll III hI IIII 111111 IIII VIII IIII IIII IIIIIIII 111111 VIII 111111111111 VIII Illll�lllll�lllll llllllllllll�lllll iiuuui S&P 500 Gold -17.34% S&P 500 Home Entertainment Software -10.22% S&P 500 Residential REITs -4.16% S&P 500 Electronic Equipment & Instruments -3.85% S&P 500 Office REITs -3.41% 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,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 fixture performance. 6 s 1 ® s 1 ......... . International Developed...the engine that could... ➢ Europe continued to see improvement. With inflation at its lowest point in 4 years, the European Central Bank (ECB) lowered rates close to zero in November to stave off the possibility of deflation. Inflation was reported at just 0.7% in October. Europe (ex-U.K.) gained of 6.5% for the quarter and was up 24.2% for 2013. ➢ Japan saw a gain on export shipments, especially considering overseas sales were the largest in 3 years thanks to solid U.S. automobile demand. This helped offset the slowdown in the 3rd quarter GDP which is believed to be only temporary. They finished the 41h quarter up 9.6% and 2013 up a whopping 54.8%. r 11" r 0111 w. Cll�'m7-i 0 1� CSC; "µk5'2';.-.(, „a 6,2',C,I o-'D 4Q13 2013 Country/Region Local USD Local USD Regions/Broad Indexes USA(S&P 500) - 10.5 - 32.4 EAFE 6.4 5.8 27.5 23.3 Europe ex-U.K. 6.5 8.2 24.2 28.7 Pacific ex-Japan 3.2 0.3 16.5 5.6 Emerging Markets 3.0 1.9 3.8 -2.3 MSCI:Selected Countries United Kingdom 5.0 7.4 18.5 20.7 France 4.3 6.2 22.1 27.7 Germany 11.3 13.3 26.7 32.4 Japan 9.6 2.3 54.8 27.3 China 3.8 3.8 4.0 4.0 India 9.0 10.3 8.6 -3.8 Brazil 0.2 -5.5 -3.0 -15.8 Russia 1.5 0.4 7.5 1.4 Returns are reported gross 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 fixture performance. 7 s 1 ® s 1 ......... . BRICs are crumbling... ➢ With almost 25% of the booming 300 million Chinese people enjoying some form of middle class lifestyle and an increase in exports in October, the markets finished the year on the positive though much slower than the previous quarter. The MSCI China was only up only 3.8% for the quarter making 2013 just 4.0%. ➢ Brazil had a contraction in output that was the worst in more than four years. However, inflation still remains a concern and the Central Bank of Brazil raised lending rates to double digits. ➢ Mexico had a strong month, but it wasn't enough to off set declines across the other emerging markets like Columbia and Peru. Cyclically Adjusted Price-to Earnings(CAPE) Ratio 30 24.5 25 22.5 w 19.9 20.5 19.4 20 16.5 16.6 r 0 15.6 4.7 15 , 10 , 0 1 M1 u m � iii 5 Italy Spain Indonesia Brazil Eur, ex China UK Canada Australia U.S. UK is Current P/E Historical Median P/E As of 11/30/2013 300.. 250'. 200_ A .. ,• "^•, ,... _........(MSCI BRAZIL. ........✓'"""^ —INSCI CHINA MSCI RUSSIA —INSCIINDIA 150 S&F'500 100.. ...:, ie.................................n r------------------------ r------------------------ i----------------------- TI Q42008 Q22009 Q42009 Q22010 Q42010 Q22011 Q4 2011 Q22012 Q4 2012 Q4 2013 This and/or the accompanying information was prepared by or obtained from sources which Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at the conclusion of this report. Past performance is not indicative of fiEtnre results. Data Sources: Wells Fargo Advisors,JPMorgan Asset Mgmt.,MSCI,Oppenheimer Funds 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 s 1 ® s 1 ......... . Fed Comments Cause for Concern in Bond Markets ➢ The 10-year note declined to a low of 2.48% once the Fed announced it would not make any adjustments to the level of its bond buying program in its September meeting. ➢ The Fed reversed course and announced that they would being tapering their bond buying program in January 2014. After the announcement, the yield rose to a high of 3.03% and proceeded to hover around the 3% mark. 10 year treasury yield ,4 .� A 1"9 Bonds make slight gains across credit quality 20.00° a AAA 15.00% 1 AA y and sectors � II 1a00% mmi A ➢ Fixed income markets were mixed this quarter. P a 5 00rof 31313 I'm Iq a J-dd"id BB Returns ranged from 1.35% for the lowest °° " investment grade debt (BBB) to -0.08% for 500°f 4Q13 YTp I YR 3 YR 5 YR AAA paper. Year-to-date returns for BBB rated bonds rose to -2.06% from -3.36%, while AAA rated bonds are down 1.26%. 1.0.0a " 5 00°l0 . p. °/n ,,,,,,,,,,,,,,,,,, .,.,.,.,.,.,.,.,. .,.,.,.,.,.,.,.,......i...... ➢ By sector, high yield experienced the largest L 0.00 0 gain this quarter, up 3.48%, followed by 5.00% J.. corporate, up 2.40%. Mortgage debt gained 4Q13 YT0 1 YR 3 YR 5 YR 10 YR 0.53% and government debt fell 0.69%. VGovts URCo,ps 01°1°,Mortgages RHIgnY"eid ➢ Yields moved higher this quarter based on 4.00 improving economic sentiment and news that R 3.000 mumummuu"'�" ��ti°� u the Fed would curtail its bond buying program } 1.00 ��io .....,� -- .- � 0.00/ �. 0—"-em .. i w � �, in 2014. of 3 MO 6 MO 2 YR 5 YR 10 YR 30 YR IM L 12/31/2010 12/31/2011 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,Bloomberg LP, Wells Fargo Securitires,LLC,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 fixture performance. 9 s 1 ® s 1 ......... . Commodities ➢ Gold continued its slide losing almost 9.5% this quarter. Overall strength in the U.S. Dollar and low inflationary fears ended gold's 12-year winning streak. Gold lost 28.26%in 2013. ➢ Among industrial metals, Copper was mixed this quarter. Losses decreased by December's 5.14% gain as demand grew in China. Copper was down 6.95%in 2013. ➢ The U.S. Dollar Index rose 0.4% for the year as foreign investors turned to the greenback as a perceived safe haven. The dollar lost ground to the euro,pound and franc, but gained against the yen. DJ UBS Commodity Index 160 150 .. 140 130 , 120 110 100 ................................................................................................................................................................................................................................................................................................................... N N N N N N N N N N N N m m m m m m m m m m m m O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ N N N N N N N N N N N N N N N N N N N N N N N N \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ N N m L!1 lD I� W Ol O N N N m L!1 lD I� W Ol O N N N N N N N Commodities Current 3 Months Ago 1 Year Ago 12/31/2013 9/30/2013 12/31/2012 Gold (per Troy ounce) $1,202.30 $1,332.90 $1,674.80 Oil (per barrel) $98.42 $102.45 $91.82 Copper (per pound) $3.40 $3.32 $3.64 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. Source:Bloomberg LP,FactSet,and Wells Fargo Advisors, Data erovided L sources believed to be reliable but no 1juarantee is made as to its accurac .Past LeLormance is no uarantee o uture EeLormance. 10 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Russell �lljl��111lF,� IZ Russell �... ��IIUD� kkk �.:.Value B ES 1 10 00 III I��ppV 10 00 V V V �� I�II��I1N11� �� I�Illl�INIIU I�II� �'� �I�I�VuI�� '. V V V ��VV V 0 �� , �� IIV U a '.o v r'g{)r'��d ��i. C v pI��I� Ill��l��l�lutld � �^I" i'dd ��.�o ��li l I,.,o a� III :�� 3 8 3 5/ �N 3 5.18% 1 ( N ��N��i�i��Y �� (li hu .. Russell 1000 Value 3753% 3335%' 857/ 17511/. �I Russell Value a��il Russell w�� 4VVV..o 4.0VV 2294/x; I..VI.. 0'. I! Y .'� 7.05/o IY" 'V e -36.85/o mp Russell VyV 0 Russell 1000 8e Russell 1000 Russell 1000 Russell 1000 ��I��IUIn�� Russell C ; �U�qp IIVI IVV ... V V V U�I�I�I,II% V R100ell 1 u !VVW Russell I. 1000 V V 0 1000 0 500 500 5 00 Value 1 u Value Value Value Value 'r Value 1 u Value 1.e o Value 131a1n ®� �+ 21.64% V 15.63% 2L04°fo 7.01% -5.59e% -15 52% I 16.49% 22.25% ?3T,00°/u r�19 M Z.11a/a �f II�I�, 32.53 Russell Russell ::. ® °a Russell Russell ��I�IIWs s s s s s s 1000 dPu 735% 9.14f 1000 V V V 1000 1000 Value 500 ��i i Value ® u 500 . 500 500 1 .500 Value Value 500.... 500 �� 30.03% - 4.91% 75.791', 5,49% ', 2b.d69°/a' 15.51% 0.39% 16,04% 32.39"% Russell :•a ::a� .: U��IUa 8 s&P N S&i W a .: Russell a I° a S&Y a 1000 1000 �� 500 500 500 500 Value it ru' Value 1.99% a L( °m -11$$% - Z,09%., 14874/n R� -0.17% ��. V L5.U6°/a V 0 V 8&P a Vy .V ,� Vy V 0 �I�I N�' R100 O 1 ��ii iilit i �� 1 1 28 500 67% 1, 1 o. �� i ui ra� 19 619% �i uioJ ae WORST I I II I�mll� ppQ I� ENEEME 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-eamings 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-eamings 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. 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 fixture performance. 11 1 60 Black Monday-a Stic Equity s. Fixed Income Domestic Equity Outperforning c� 40 ---------- — 20 � r 0 C C —20 1010) �C t} —1'.. C7 Cf C� C, C F :(4} tf'y h"' } C CA C.e1 4Y.e4 f:+� k G'� G.eY dye Q Q C.} 4 Q Q Q Q Q ?=1 r N C7 C7 CI C*1 C7 C] i'�mo C7 SV N C3 C7 N N C3 C7 f3 e7 C:7: �" „ww.W.:, f.w' wuM mw�. w mwti ummu rvr✓"wm4(tAl�w X' �Plwwb" "rervM'd�wrob" ':w ww' aww —" .. n'w'.0— w.W 0+'rvw'wW wwJu mwY' 40 Aug;'$2-DJIA 776 Invasion of Iraq -60 Fixed Income Outperforming Domestic Equity vs.Fixed Income Mean 1 Standard Deviation 2 Standard Deviations 60 Domestic Equity vs. Foreign Equity Domestic Equity Outperforming 40 20 A 0 VA f ca VW I ca 1 C i Cn a I C I I I �ts,ca f o caf': ra f Ca'. I cIi mo" Ca f c I"" r I c c I ry I c1 a e f I Ca I f C 'I 20 ,R 00 r r C 8 c 0 a 10:S S Ca co��1 a c� c� -40 Foreign Equity Outperforming -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 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 fixture performance. 12 1 • . 40 Large Cap fig. Small Cap Large Cap Outperforming 20 A W 0 r� A kn x fill sh u'y Cw- 9 rh '4h V(W—, CS Q M d' u5 00 h�} f/J CN+ Cs CY+ 4^S, . \. -20 c� ca c� ca c� ca ca ' c� c� ca c� ca ca ra ca ca ca cv ca` ra c� ra ra ca c� ca ca ca ca �+ -40 Small Cap Outperform ing Large Cap vs.Small Cap Mean 1 Standard Deviation 2 Standard Deviations 60 Large Value vg.Large Growth Value Outperforming 40 20 A, A A V �nA 0 N t u as� c R ca r t ce c c7 r n ca as Cp as as a� c� N ia "N N ;N ca c N rl c1" "ca N N N N cu N ca N ,c*1 N c*i c*1 c3 -20 c� ca ca ca ct c� c� ca ca eri ca r�' ca c� er c� ca ca c� ca ca ra ca er ca ca cv c3 c� rri � -40 -60 Growth Outperforming Large Value vs.Large Growth Mean 1 Standard Deviation ^^ll 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 fixture performance. 13 1 I INS,, 111111 1111 111 EII 11111 60 Small Value vs. Small Gro Value Outperforming 40 20 A- VA 1, A A A 0 ca o ry ca c� cat ra cv ra' ca ca ra' ra' ra r�" cv" r3 ra' cv' ca r� r�" '� r� i�a ca ev cv' cv -20 4X5 4k5 4X5 4X5 47J 47J 4xJ 4"A 4X5 4X5 Ct rug: G't G'* G't Ct G's C",Y ``.-„,w'uu�wam +ww�Hxxti..., uu a�n rvrvrvM HxmF'sx�W.r,,,.w„'a'z uGG G um w.w rvdGtr vYwW w'nv "uG� + s '.w uuuJU -40 -60 Growth Outperforming Small Value vs.Small Growth Mean 1 Standard Deviation 2 Standard Deviations 80 D4 mestic Equity vs.REIT Domestic Equity Outperforming 60 40 20 1 I nA f'I A A A 0 TV N- -40-20 , G e ra , c c G es, acs, 4 ,G esr GG can csr G w -60 -80 REZT Outperforming Domestic Equity 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 fixture performance. 14 1 I INS,, 111111 1111 111 EII 11111 120 100 Fixed Income g,. I IT Fixed Income Outperforming 80 60 40 20 0 AA/-% f�,, Ak 'A o o t, o 00 1, CIO �-+ 20 ry c� ca ea ra v rS c t ca v r3 3 r r3 c i r cv ry ev ev cv -40 r c ca rn n a c a � ov C$ T Cn 0e r sr n a -60 ca ca ra ca c c ca c c c ca ca ca! ca ca ca ca ti -80 -100 -120 REIT Outperforming 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 fixture performance. 15 1 . . 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 Term Treasuries = BC Treasury Long; Municipals = BC Municipal; Foreign Bonds = Salomon World BIG—IB; 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. 16 1 . . 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. 17 1 . . 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 Government/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 1 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 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 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 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. 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 12/31/13 Market Manager Value Actual% Policy% ING Investment Mgmt 126,820,733.62 15.12 NTGI-QM R1000V 44,511,230.40 5.31 Eagle Capital Management 42,630,069.86 5.08 Manning and Napier 39,968,987.56 4.76 Artisan Partners 51,470,707.32 6.14 Wedge Capital Mgmt 53,543,667.34 6.38 Atlanta Capital Mgmt 17,403,505.97 2.07 Systematic Financial Mgt 17,870,422.62 2.13 Riverbridge Partners 34,624,104.95 4.13 Total Domestic Equity 428,843,429.64 51.12 42.00 Earnest Partners 45,417,863.92 5.41 WHV 36,136,196.87 4.31 Eaton Vance Mgmt 38,359,194.86 4.57 Total International Equity 119,913,255.65 14.30 18.00 Dodge&Cox 115,334,486.57 13.75 Western Asset Management Co. 89,472,483.75 10.67 Security Lending Income Account 133,479.13 0.02 In House Account 4,399,986.55 0.52 Total Domestic Fixed Income 209,340,436.00 24.96 30.00 Multi Employer Property Trust 27,709,718.20 3.30 Security Capital 42,289,036.37 5.04 Molpus Woodlands Group 7,364,392.00 0.88 Hancock 3,365,561.00 0.40 Total Real Estate 80,728,707.57 9.62 10.00 Total Fund 838,825,828.86 100.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 9/30/13 - 12/31/13 Beginning Net Invest Invest Ending Manager Name Value Contrib Fees Gain/Loss Value ING Investment Mgmt 115,189,292 � () 0 11,632,281 126,820,734 NTGI-QM R1000V 40,456,352 0 0 4,054,879 44,511,230 Eagle Capital Management 38,695,714' 16 0 3,934,672 42,630,070 Manning and Napier 36,814,683 51'17 0 3,154,841 39,968,988 Artisan Partners 48,448,562 607 0 3,022,752 51,470,707 Wedge Capital Mgmt 49,288,691 3.62 0 4,255,439 53,543,667 Atlanta Capital Mgmt 15,718,525 1117 0 1,685,287 17,403,506 Systematic Financial Mgt 16,151,846 1311 0 1,718,716 17,870,423 Riverbridge Partners 32,128,135 3116 0 2,496,376 34,624,105 Equity 392,891,800 3,613 0 35,955,243 428,843,430 Earnest Partners 42,806,570 2,1152 0 2,613,376 45,417,864 WHV 33,890,379 1,7115 0 2,247,553 36,136,197 Eaton Vance Mgmt 37,403,195 0 0 956,000 38,359,195 International EQ Comp 114,100,144 3,817 0 5,816,929 119,913,256 Dodge&Cox 114,071,061 550 0 1,264,276 115,334,487 Western Asset Management Co. 89,637,007 7.7611 0 161.753 89,472,484 Security Lending Income Account 3,590 129,153 0 736 133,479 In House Account 4,648,569 24 8,5 0 0 4,399,987 Fixed Income Comp 208,360,227 7123,1149 0 1,103,258 209,340,436 Multi Employer Property Trust 26,858,895 0 0 850,823 27,709,718 Security Capital 43,679,501 931.7136 0 446,773 42,289,036 Molpus Woodlands Group 6,420,392 944,000 0 0 7,364,392 Hancock 3,365,561 0 0 0 3,365,561 Real Estate Comp 80,324,349 2.36 0 404,595 80,728,708 Total Fund 795,676,520 ]1.3101,7715 0 43,280,024 838,825,829 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending December 31, 2013 Net of Fee Return Value Periods Ending 12/31/13 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Total Fund 838,826 5.44 17.74 10.16 15.44 6.97 7.70 6.25 9.48 12/31/87 Policylndex 5.02 14.62 9.71 13.65 5.58 7.67 6.68 9.57 12131187 Domestic Equity Comp 428,843 9.15 35.15 16.87 20.91 8.09 9.08 6.56 11.51 12/31/87 S&P 500 10.52 32.41 16.18 17.93 6.13 7.40 4.67 10.50 12131187 Large Cap Equity Comp 253,931 9.85 32.23 15.32 17.43 6.54 7.70 4.95 10.54 3/31/88 R1000 10.23 33.11 16.30 18.59 6.44 7.78 5.07 10.53 3131188 Eagle Capital Management 42,630 10.17 28.26 1/31/13 Russell 1000 Value 10.01 24.45 1131113 ING Investment Mgmt 126,821 10.10 31.57 17.27 18.63 9.09 9.30 6.16 11.78 12/31/87 RIOOOG 10.44 33.49 16.45 20.39 8.24 7.83 3.33 9.96 12131187 Manning and Napier 39,969 8.57 20.74 1/31/13 Russell 1000 Value 10.01 24.45 1131113 NTGI-QM R1000V 44,511 10.02 32.94 15.92 16.76 3.98 6/30/07 RIOOOV 10.01 32.54 16.06 16.67 3.90 6130107 Mid Cap Equity Comp 105,014 7.45 37.36 18.74 25.51 10.40 10.76 9.48 13.03 3/31/88 RMid Cap 8.39 34.76 15.87 22.35 7.83 10.22 9.22 12.06 3131188 Artisan Partners 51,471 6.24 39.21 18.95 27.67 13.12 12.90 10.75 7/31/01 RMid Cap G 8.23 35.76 15.63 23.38 8.53 9.77 7.96 7131101 Wedge Capital Mgmt 53,544 8.63 34.92 18.31 23.11 8.91 2/28/07 R Mid Cap V 8.55 33.45 15.96 21.16 6.40 2128107 Small Cap Equity Comp 69,898 9.22 42.51 19.60 24.17 9.36 10.54 11.12 8/31/03 R2000 8.72 38.82 15.67 20.08 7.21 9.07 10.01 8131103 Atlanta Capital Mgmt 17,404 10.72 42.43 20.88 23.06 13.51 13.68 13.84 8/31/03 Russell 2000 8.72 3788 15.43 18.22 5.77 8.87 10.06 8131103 Riverbridge Partners 34,624 7.77 43.50 20.81 24.75 9/30/10 R2000G 8.18 43.29 16.81 21.17 9130110 Systematic Financial Mgt 17,870 10.64 40.72 16.12 23.56 8.02 9.40 10.32 8/31/03 R2000V 9.29 34.50 14.48 17.63 5.39 8.61 9.79 8131103 International EQ Comp 119,913 5.10 10.23 3.27 15.54 2.52 7.29 6.00 5/31/01 MSCIEAFE 5.75 23.29 8.66 12.96 2.26 7.39 6.14 5131101 Earnest Partners 45,418 6.11 15.81 8.11 18.04 4.67 4/30/08 MSCIEAFE 5.75 23.29 8.66 12.96 1.50 4130108 Eaton Vance Mgmt 38,359 2.56 1.22 1.05 14.82 0.56 4/30/08 MSCIEmgMkts 1.86 .08 I.l,/ 15.15 0.1'1'18 4130108 WHV 36,136 6.63 14.10 4.85 16.15 1.69 4/30/08 MSCIEAFE 5.75 23.29 8.66 12.96 1.50 4130108 Fixed Income Comp 209,340 0.53 0'"15 3.85 6.21 5.64 5.10 5.32 6.63 12/31/87 BCAgg 0.18 .0 3.26 4.44 4.91 4.55 5.23 6.87 12131187 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending December 31, 2013 Net of Fee Return Value Periods Ending 12/31/13 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Dodge&Cox 115,334 1.11 0.65 4.49 7.04 5.98 5.31 2/29/04 BCAgg 0.10 .0 3.26 4.44 4.91 4.43 2129104 In House Account 4,400 0.00 0.00 0 00 0 00 0 00 0 00 0 00 0.70 12/31/87 3-month T-Bill 0.01 0.05 0.07 0.10 0.99 1.59 2.22 3.62 12131187 Security Lending Income Account 133 0.75 2.56 4.10 10.03 8.20 6.63 6.36 6/30/03 3-month T-Bill 0.01 0.05 0.07 0.10 0.99 1.59 1.56 6130103 Western Asset Management Co. 89,472 0.13 2.16 3.19 5.15 5.17 4.83 9/30/04 BCAgg 0.10 .0 3.26 4.44 4.91 4.55 9130104 Real Estate Comp 80,729 0.50 5.49 8.65 15.85 2.96 4/30/08 Policylndex 0.54 6.02 10.95 1713 3.70 4130108 Hancock 3,366 0.00 2.67 3.01 5/31/12 NCREIF Timberland Index 5.92 9.68 10.88 5131112 Molpus Woodlands Group 7,364 0.00 11.63 3.97 6/30/11 NCREIF Timberland Index 5.92 9.68 6.98 6130111 Multi Employer Property Trust 27,710 3.17 11.83 9.78 10.55 9/30/10 NCREIF ODCE 3.17 13.94 13.61 14.19 9130110 Security Capital 42,289 1.02 1.60 8.06 15.67 2.82 4/30/08 Wilshire REST 0.70 2.15 9.24 16.81 3.38 4130108 22 City of Clearwater Employees Pension Fund Executive Summary Table December 31, 2013 Net of Fee Return Value Calendar Years Name $(000) 2013 2012 2011 2010 2009 2008 Total Fund 838,826 17.74 13.93 0,36 17.73 30.28 97"1l0 Policylndex 14.62 13.17 1.81 13.96 26.00 % Domestic Equity Comp 428,843 35.15 18.37 0,211 22.53 32.14 37"79 S&P 500 32.41 15.98 2.12 15.05 26.45 06.99 Large Cap Equity Comp 253,931 32.23 17.02 0,90 16.87 24.59 35,21 R1000 33.11 16.42 1.51 16.10 28.42 0%60 Eagle Capital Management 42,630 Russell 1000 Value ING Investment Mgmt 126,821 31.57 18.95 3.04 17.10 24.43 18 RIOOOG 33.49 15.26 2.63 16.72 37.21 08.10 Manning and Napier 39,969 Russell 1000 Value NTGI-QM RIOOOV 44,511 32.94 18.09 0 77 15.75 20.35 36.36 RIOOOV 32.54 17.50 0.39 15.51 19.69 06.85 Mid Cap Equity Comp 105,014 37.36 22.00 0,110 28.03 45.33 �1,79 RMid Cap 34.76 1726 ]-r6 25.49 40.47 !11.16 Artisan Partners 51,471 39.21 20.82 0.07 33.15 51.38 X12.37 R Mid Cap G 35.76 15.80 1.66 26.39 46.30 11, Wedge Capital Mgmt 53,544 34.92 23.16 0.33 23.30 38.5131.39 RMid Cap V 33.45 18.48 L08 24.76 34.20 x'8.15` Small Cap Equity Comp 69,898 42.51 17.61 2.07 29.27 33.51 18,63 R2000 38.82 16.34 1.1% 26.85 2719 ""30 Atlanta Capital Mgmt 17,404 42.43 12.53 10.20 25.98 26.83 19.57 Russell 2000 37.88 18.05 r.'r0 24.51 20.57 %'8.9 Riverbridge Partners 34,624 43.50 17.83 4.27 R2000G 43.29 14.59 .9 Systematic Financial Mgt 17,870 40.72 23.50 9.91 35.50 35.72 10 71 R2000V 34.50 18.05 r.'r0 24.51 20.57 %'8.9 International EQ Comp 119,913 10.23 17.61 15,0G 18.37 57.93 47,94 MSCI SAFE 23.29 17.90 11 7J, 8.21 32.46 1 .06 Earnest Partners 45,418 15.81 17.18 6.33 16.61 55.54 MSCI SAFE 23.29 17.90 11 7J, 8.21 32.46 Eaton Vance Mgmt 38,359 1.22 18.55 19.27 23.33 67.01 MSCI Emg Mkts .i7 18.62 18.17 19.19 79.02 WHV 36,136 14.10 16.97 116,1 17.58 55.98 MSCI SAFE 23.29 17.90 11.7.7 8.21 32.46 Fixed Income Comp 209,340 0'"15 6.53 5.94 7.37 12.37 2.54 BC Agg .0 4.22 7.84 6.54 5.93 5.24 23 City of Clearwater Employees Pension Fund Executive Summary Table December 31, 2013 Net of Fee Return Value Calendar Years Name $(000) 2013 2012 2011 2010 2009 2008 Dodge&Cox 115,334 0.65 7.85 5.10 7.53 14.53 1.37 BC Agg .0 4.22 7.84 6.54 5.93 5.24 In House Account 4,400 0.00 (?.00 0.00 0.00 0.00 0.00 3-month T-Bill 0.05 0.07 0.08 0.13 0.16 1.80 Security Lending Income Account 133 2.56 6.93 2.85 21.70 17.48 2.43 3-month T-Bill 0.05 0.07 0.08 0.13 0.16 1.80 Western Asset Management Co. 89,472 2.16 5.07 7.23 7.09 9.24 3.92 BC Agg .0 4.22 7.84 6.54 5.93 5.24 Real Estate Comp 80,729 5.49 11.69 8.85 30.51 24.68 Policylndex 6.02 15.41 11.62 24.96 29.20 Hancock 3,366 2.67 NCREIF Timberland Index 9.68 Molpus Woodlands Group 7,364 11.63 0.77 NCREIF Timberland Index 9.68 7.75 Multi Employer Property Trust 27,710 11.83 4.70 12.99 NCREIF ODCE 13.94 10.94 15.99 Security Capital 42,289 1.60 16.22 6.86 31.62 24.68 Wilshire REST 2.15 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 12/13 24% 22% 20% 18% --- 16% 14% 1 12% --- 8% --- _ - 6% _-- 4% --- --- --- 2% 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 6.78 22.01 17.66 12.11 13.02 15.13 6.93 7.22 7.77 7.83 8.28 1st Qt 5.79 19.03 15.91 10.63 11.36 13.34 5.91 6.09 6.89 7.02 7.39 Median 5.31 16.18 14.43 9.86 10.59 12.30 5.10 5.59 6.36 6.50 6.88 3rd Qt 4.57 14.00 13.13 8.77 9.50 10.90 4.40 5.02 5.84 5.98 6.36 Low 2.17 4.70 6.71 5.99 6.48 6.98 2.59 3.75 4.87 5.28 5.78 T Total Fund Net Ret 5.44 17.74 15.82 10.16 12.00 15.44 6.93 6.97 7.55 7.46 7.70 Rank 41 36 28 36 11 3 5 7 12 15 16 1 Policy Index Net Ret 5.02 14.62 13.89 9.71 10.76 13.65 5.39 5.58 6.89 7.04 7.67 Rank 63 69 61 54 42 15 43 50 25 23 17 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 20% ---- 15% ---- -1---- ---- ---- ---- -1---- ---- 5% 0% -5% -10% -15% -20% -25% -30% 1-- -35 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 22.01 15.01 5.13 16.38 27.82 -0.27 11.17 16.44 10.63 14.30 1st Qt 19.03 13.61 2.30 14.02 21.87 -20.32 9.16 14.71 8.40 12.09 Median 16.18 12.46 1.09 12.67 18.82 -24.77 7.93 12.96 7.00 10.58 3rd Qt 14.00 11.25 -0.04 11.19 14.98 -27.22 6.61 10.63 5.46 8.73 Low 4.70 4.88 -3.03 5.64 4.37 -30.39 4.77 4.85 3.64 5.64 T Total Fund Net Ret 17.74 13.93 -0.36 17.73 30.28 -27.10 7.20 11.76 6.71 9.90 Rank 36 19 78 2 2 73 63 62 53 61 1 Policy Index Net Ret 14.62 13.17 1.81 13.96 26.00 -27.73 6.69 16.59 8.25 13.48 Rank 69 32 33 27 7 79 73 4 28 8 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2013 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 I Year 3 Year 5 Year Incept 12/31/87 om Total Fund Policy Index Cur Qtr YTD I Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Total Fund 5.44 17.75 17.75 10.16: 15.45 9.48 12/31/87 $838,825,829 Policy Index 5.02 14.62 14.62 9.71 13.65 9.57 Rank 41 36 36 36 3 ING Investment Mgmt 10.10 31.57 31.57 17.27; 18.63 11.78 12/31/87 $126,820,734 RIOOOG 10.44 33.49 33.49 16.45 20.39 9.96 Rank 60 73 73 35 78 NTGI-QM RIOOOV 10.02 32.94 32.94 15.92 16.76 3.98 6/30/07 $44,511,230 R1000V 10.01 32.54 32.54 16.06 16.67 3.90 Rank 32 50 50 55 70 Eagle Capital Management 10.17 28.26 1/31/13 $42,630,070 Russell 1000 Value 10.01 24.45 Rank 27 Manning and Napier 8.57 20.74 1/31/13 $39,968,988 Russell 1000 Value 10.01 24.45 Rank 71 Artisan Partners 6.24 39.21 39.21 18.95` 27.67 10.75 7/31/01 $51,470,707 R Mid Cap G 8.23 35.76 35.76 15.63 23.38 7.96 Rank 84 29 29 18 7 Wedge Capital Mgmt 8.63 34.92 34.92 18.31 23.11 8.91 2/28/07 $53,543,667 R Mid Cap V 8.55 33.45 33.45 15.96 21.16 6.40 Rank 19 50 50 31 19 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Atlanta Capital Mgmt 10.72 42.43 42.43 20.88 23.06 13.84 8/31/03 $17,403,506 Russell 2000 8.72 37.88 37.88 15.43 18.22 10.06 Rank 34 13 13 2' 28 Systematic Financial Mgt 10.64 40.72 40.72 16.12 23.56 10.32 8/31/03 $17,870,423 R2000V 9.29 34.50 34.50 14.48 17.63 9.79 Rank 36 27 27 53 25 Riverbridge Partners 7.77 43.50 43.50 20.81 24.75 9/30/10 $34,624,105 R2000G 8.18 43.29 43.29 16.81 21.17 Rank 61 48 48 18 Earnest Partners 6.11 15.81 15.81 8.11 18.04 4.67 4/30/08 $45,417,864 MSCI EAFE 5.75 23.29 23.29 8.66 12.96 1.50 Rank 43 75 75 57 19 WHV 6.63 14.10 14.10 4.85 16.15 1.69 4/30/08 $36,136,197 MSCI EAFE 5.75 23.29 23.29 8.66 12.96 1.50 Rank 36 83 83 85 38 Eaton Vance Mgmt 2.56 1.22 1.22 •ll.iii 14.96 0.67 4/30/08 $38,359,195 MSCI Emg Mkts 1.86 227 227 1 74 15.15 0 76 Rank 44 30 30 54 66 Dodge&Cox 1.11 0.65 0.65 4.49 7.04 5.31 2/29/04 $115,334,487 BC Agg 0 16. 2.02 7 02 3.26 4.44 4.43 Rank 26 31 31 39 34 Western Asset Management Co. 0 16 7 46 7 46 3.19 5.15 4.83 9/30/04 $89,472,484 BC Agg 0 14 2.02 7 02 3.26 4.44 4.55 Rank 83 84 84 77 62 Security Lending Income Account 0.75 2.56 2.56 4.10 10`60 6.62 6/30/03 $133,479 3-month T-Bill 0.01 0.05 0.05 0.07 0.10 1.56 In House Account 0.00 0.00 0.00 0.00 0.00 0.70 12/31/87 $4,399,987 3-month T-Bill 0.01 0.05 0.05 0.07 0.10 3.62 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2013 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Multi Employer Property Trust 3.17 11.83 11.83 9.78 10.55 9/30/10 $27,709,718 NCREIF ODCE 3.17 13.94 13.94 13.61 14.19 Rank 31 34 34 49 Security Capital 1.02 1.60 1.60 8.06 15.67 2.82 4/30/08 $42,289,036 Wilshire RESI 0 75 2.15 2.15 9.24 16.81 3.38 Rank 90 83 83 65 15 Molpus Woodlands Group 0.00 11.63 11.63 3.97 6/30/11 $7,364,392 NCREIF Timberland Index 5.92 9.68 9.68 6.98 Rank 76 35 35 Hancock 0.00 7 01 7 01 3.16 5/31/12 $3,365,561 NCREIF Timberland Index 5.92 9.68 9.68 10.88 Rank 76 91 91 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 12/31/13 Portfolio Performance 40.0 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 12/31/87 EM 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 9.15 35.15 35.15 16.87 20.91 9.08 11.51 S&P 500 10.52 32.41 32.41 16.18 17.93 7.40 10.50 Asset Growth(5000) Beginning Market Value 392,892 329,339 329,339 287,057 165,993 249,747 32,236 Net Contributions&Withdrawals -4 -14,172 -14,172 -23,719 -28,852 -28,852 -28,852 Gain/Loss+Income 35,955 113,676 113,676 165,505 291,702 207,948 425,459 Ending Market Value 428,843 428,843 428,843 428,843 428,843 428,843 428,843 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Google Inc Information Technology 2.03 Energy 5.94 Apple Inc Information Technology 1.99 Materials 4.13 Oracle Corp Information Technology 1.58 Industrials 14.38 Pepsico Inc Consumer Staples 1.30 Consumer Discretionary 17.41 Home Depot Inc Consumer Discretionary 1.03 Consumer Staples 9.32 Microsoft Corp Information Technology 1.00 Health Care 13.84 Gilead Sciences Inc Health Care 0.98 Financials 11.77 Comcast Corp New Consumer Discretionary 0.79 Information Technology 21.70 Delphi Automotive Pl Consumer Discretionary 0.78 Telecom Services 0.16 Berkshire Hathaway I Financials 0.77 Utilities 1.34 Holdings and allocations only include SMA accounts. 31 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 12/31/13 Asset Allocation($000) Cash&Equiv $10,013 2.33% Domestic Equity $418,830 97.67% Risk/Return Analysis Periods from 12/87 to 12/13 Alpha 0.14 Beta 1.09 R-Squared 0.94 12.0 11.0 10.0 9.0 C4 8.0 b N 7.0 6.0 Q 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 11.51 17.78 0.44 0.24 1 S&P 500 10.50 15.84 0.43 T" 91-Day Treasury Bill 3.75 1.26 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 12/13 50% 45% 40% 35% 30% __ 25% -- 20% --- --- 15% 10% 5% - -00--- -- Zug -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 12.16 45.47 31.64 20.19 22.98 26.43 12.54 11.80 11.91 11.61 12.48 1st Qt 10.49 37.98 27.46 17.38 18.90 22.15 9.55 9.05 9.90 9.71 10.43 Median 9.46 33.31 24.52 16.15 16.55 19.75 7.55 7.42 8.39 8.29 8.92 3rd Qt 7.63 30.03 22.10 14.24 15.24 17.86 6.26 6.12 7.31 7.20 7.71 Low 0.46 4.08 7.31 6.08 7.23 12.44 4.17 4.19 5.70 5.92 6.51 E Domestic Equity Comp Net Ret 9.15 35.15 26.48 16.87 18.26 20.91 8.25 8.09 8.70 8.63 9.08 Rank 55 38 31 31 30 36 40 39 45 43 47 1 S&P 500 Net Ret 10.52 32.41 23.92 16.18 15.90 17.93 6.24 6.13 7.30 7.03 7.40 Rank 22 60 59 48 65 73 75 74 75 81 85 33 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December 60% 50% 40% _ 20% --- ---- 10% -- -10% ---- -20% -30% -40% ---- -50 -60% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 45.47 22.65 8.04 33.10 54.28 -16.83 22.29 23.13 16.04 25.46 1st Qt 37.98 17.93 2.16 25.24 37.05 -33.45 10.35 17.58 10.54 18.30 Median 33.31 15.94 -0.13 17.01 28.94 -37.00 5.42 14.82 7.08 13.09 3rd Qt 30.03 12.26 -4.13 13.78 24.29 -40.97 0.40 10.21 4.74 10.25 Low 4.08 2.09 -11.73 5.48 9.06 -49.09 -7.62 1.90 -0.03 3.81 E Domestic Equity Comp Net Ret 35.15 18.37 -0.21 22.53 32.14 -37.76 7.18 13.01 8.12 13.18 Rank 38 21 50 32 40 57 36 63 42 49 1 S&P 500 Net Ret 32.41 15.98 2.12 15.05 26.45 -36.99 5.52 15.81 4.89 10.87 Rank 60 49 27 66 65 49 47 39 72 69 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 3 4 5 32 29 Positive Periods 4 4 10 9 16 15 72 75 Up Market Capture 1.08 1.08 1.10 1.09 Down Market Capture 1.12 0.97 1.05 Batting Average 0.50 0.58 0.70 0.55 Worst Quarter 2.39 2.92 1 6,27 1 3,86 1 6,27 13,86 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 35.15 32.41 0,21. 2.12 0,21. 1.15 37,76 38,07 Best 4 Quarters 35.15 32.41 35.15 32.41 55.86 49.75 55.86 49.75 Standard Deviation 7.72 7.72 16.72 15.16 18.47 17.60 17.78 15.84 Beta 0.98 1.09 1.04 1.09 Alpha 0.71 0,13 0.14 R-Squared 0.88 0.97 0.98 0.94 Sharpe Ratio 4.54 4.19 1.00 1.06 1.13 1.01 0.44 0.43 Treynor Ratio 35.86 15.46 20.01 7.13 Tracking Error 4.06 3.19 2.86 4.70 Information Ratio 0.53 0.26 0.96 0.24 -j 35 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/13 24.0 ro 22.0 c 20.0 18.0 ~ • • • •: • o • • 16.0 ' • •• Median b • IL � • � • Return N 14.0 • • ' ' Q 12.0 • ' ' 10.0 • • 8.0 j j 6.0 8.2 10.4 12.6 14.8 17.0 19.2 21.4 23.6 25.8 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp 16.87 31 16.72 49 S Standard&Poors 500 16.18 48 15.16 24 Median 16.15 17.06 5 Years Ending 12/31/13 28.0 26.0 ' • c 24.0 ' 22.0 • • • 20.0 '• • .• ♦•• Median a • . . ' Return N 18.0 • • •. • • •$•� •' • • Q 16.0 • • • 14.0 • 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 E Domestic Equity Comp 20.91 36 18.47 43 S Standard&Poors 500 17.93 73 17.60 27 Median 19.75 19.38 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 12/31/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 INN 5.0 0.0 UINUEL-t I INN INN L -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 EM 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 9.85 32.23 32.23 15.32 17.43 7.70 10.54 R1000 10.23 33.11 33.11 16.30 18.59 7.78 10.53 Asset Growth(5000) Beginning Market Value 231,156 192,294 192,294 162,657 84,606 137,424 18,032 Net Contributions&Withdrawals -2 -164 -164 1,304 35,174 35,174 35,174 Gain/Loss+Income 22,777 61,800 61,800 89,969 134,151 81,333 200,725 Ending Market Value 253,931 253,931 253,931 253,931 253,931 253,931 253,931 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Google Inc Information Technology 3.72 Energy 6.78 Apple Inc Information Technology 3.63 Materials 4.70 Oracle Corp Information Technology 2.89 Industrials 10.33 Pepsico Inc Consumer Staples 2.38 Consumer Discretionary 18.11 Home Depot Inc Consumer Discretionary 1.88 Consumer Staples 15.13 Microsoft Corp Information Technology 1.83 Health Care 13.44 Gilead Sciences Inc Health Care 1.80 Financials 8.43 Comcast Corp New Consumer Discretionary 1.44 Information Technology 22.81 Berkshire Hathaway I Financials 1.41 Telecom Services 0.25 Wal Mart Stores Inc Consumer Staples 1.39 Utilities 0.02 Holdings and allocations only include SMA accounts. 37 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 12/31/13 Asset Allocation($000) Cash&Equiv $4,515 1.78% Domestic Equity $249,416 98.22% Risk/Return Analysis Periods from 3/88 to 12/13 Alpha 0.04 Beta 0.98 R-Squared 0.96 11.0 10.0 9.0 8.0 cC � 7.0 6.0 c 5.0 Q 4.0 3.0 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 10.54 16.31 0.42 -0.01 1 R1000 10.53 16.29 0.42 T" 91-Day Treasury Bill 3.73 1.26 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 12/13 40% 35% -1-- 30% 25% 20% 15% - -- 10% --- 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 11.95 38.31 28.76 18.53 19.05 22.03 9.66 9.02 10.29 9.53 9.87 1st Qt 10.60 33.55 24.81 16.97 16.77 19.20 7.37 7.21 8.21 7.84 8.41 Median 10.35 32.45 23.97 16.24 16.00 18.09 6.52 6.34 7.48 7.32 7.85 3rd Qt 9.60 31.87 23.01 15.79 15.49 17.76 6.19 5.99 7.19 7.04 7.47 Low 5.43 21.08 19.80 10.84 12.29 15.46 5.14 4.46 5.84 5.82 6.56 L Large Cap Equity Comp Net Ret 9.85 32.23 24.40 15.32 15.70 17.43 6.34 6.54 7.15 7.32 7.70 Rank 70 69 41 77 73 79 58 42 76 50 55 1 R1000 Net Ret 10.23 33.11 24.49 16.30 16.25 18.59 6.55 6.44 7.53 7.39 7.78 Rank 55 34 37 42 41 38 48 47 49 46 53 39 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% ---- 20% 10% ---- 0% -- -10% -20% -30% -40% -50% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 38.31 22.74 6.19 21.67 40.91 -27.25 10.79 20.80 11.88 19.91 1st Qt 33.55 17.03 2.47 16.86 31.92 -34.95 6.52 17.97 9.07 14.21 Median 32.45 16.06 1.91 15.19 27.14 -36.82 5.55 15.81 5.83 11.37 3rd Qt 31.87 14.79 0.76 14.50 26.43 -37.54 4.65 15.21 4.89 10.84 Low 21.08 10.20 -6.03 11.62 22.04 -42.97 -1.39 11.06 2.60 8.27 L Large Cap Equity Comp Net Ret 32.23 17.02 -0.90 16.87 24.59 -35.23 7.76 11.52 8.63 11.24 Rank 69 25 81 24 88 26 14 94 27 54 1 R1000 Net Ret 33.11 16.42 1.51 16.10 28.42 -37.60 5.77 15.46 6.27 11.39 Rank 34 37 60 32 42 77 39 72 42 48 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 2 5 4 32 28 Positive Periods 4 4 9 10 15 16 71 75 Up Market Capture 0.97 0.98 0.98 0.99 Down Market Capture 1.08 1.05 0.98 Batting Average 0.25 0.25 0.45 0.50 Worst Quarter 2.14 2.65 15,13 14,68 15,13 14,68 20,96 22.4 Best Quarter 10.65 10.96 14.01 12.90 16.91 16.49 20.12 21.88 Worst 4 Quarters 32.23 33.11 0,90 1.51 0,90 0.91 37,57 38,26 Best 4 Quarters 32.23 33.11 32.23 33.11 49.31 51.57 49.31 51.57 Standard Deviation 7.74 7.75 16.02 15.66 18.14 17.94 16.31 16.29 Beta 0.98 1.02 1.01 0.98 Alpha 0,05 0,27 0,27 0.04 R-Squared 0.99 0.99 0.99 0.96 Sharpe Ratio 4.15 4.26 0.95 1.04 0.95 1.03 0.42 0.42 Treynor Ratio 32.70 14.97 17.22 6.94 Tracking Error 0.90 1.52 1.82 3.07 Information Ratio 0,79 79 0, 0,55 1. -j 41 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios 3 Years Ending 12/31/13 20.9 ro 20.0 19.1 18.2 �• • 1 0 17.3 • 16.4 �• Median °7�� 15.5 Return 14.6 • ' Q 13.8 • 12.9 • • 12.0 ' 9.0 10.3 11.6 12.9 14.2 15.5 16.8 18.1 19.4 20.7 22.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 15.32 77 16.02 69 1 R1000 16.30 42 15.66 56 Median 16.24 15.60 5 Years Ending 12/31/13 23.0 ro 22.0 • 21.0 • 20.0 % • • .• 0 19.0 • • 18.0 '• • Median + • Return °N 17.0 • ' • • 16.0 • ' Q 15.0 14.0 13.0 12.0 13.1 14.2 15.3 16.4 17.5 18.6 19.7 20.8 21.9 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 17.43 79 18.14 63 1 R1000 18.59 38 17.94 59 Median 18.09 17.72 42 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 12/31/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 INN 5.0 INN 0.0 INN -5.0 it 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 10.10 31.57 31.57 17.27 18.63 9.30 11.78 R1000G 10.44 33.49 33.49 16.45 20.39 7.83 9.96 Asset Growth(5000) Beginning Market Value 115,189 96,396 96,396 89,481 42,416 47,080 17,469 Net Contributions&Withdrawals -1 -3 -3 -13,008 10,379 10,379 10,379 Gain/Loss+Income 11,632 30,429 30,429 50,347 74,026 1 69,362 98,973 Ending Market Value 126,821 126,821 126,821 126,821 126,821 126,821 126,821 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Apple Inc Information Technology 5.03 Energy 3.86 Google Inc Information Technology 4.94 Materials 4.62 Gilead Sciences Inc Health Care 2.96 Industrials 12.12 Home Depot Inc Consumer Discretionary 2.48 Consumer Discretionary 23.02 Comcast Corp New Consumer Discretionary 2.37 Consumer Staples 12.10 Pepsico Inc Consumer Staples 2.25 Health Care 12.57 Oracle Corp Information Technology 2.22 Financials 5.55 Mastercard Inc Information Technology 2.20 Information Technology 26.16 Starbucks Corp Consumer Discretionary 2.20 Telecom Services 0.00 Union Pac Corp Industrials 2.18 Utilities 0.00 43 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 12/31/13 Asset Allocation($000) Cash&Equiv $2,284 1.80% Domestic Equity $124,536 98.20% Risk/Return Analysis Periods from 12/87 to 12/13 Alpha 0.61 Beta 0.85 R-Squared 0.93 12.0 11.0 10.0 9.0 C4 8.0 b N 7.0 6.0 Q 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 11.78 16.33 0.49 0.22 1 R1000G 9.96 18.56 0.33 T" 91-Day Treasury Bill 3.75 1.26 0.00 44 City of Clearwater Employees Pension Fund Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 50% 45% 40% 35% 30% 25% --- 20% --- 15% -- --- --- 10% 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 12.30 44.45 32.57 22.19 23.45 31.84 12.80 13.81 11.32 11.29 12.02 1st Qt 11.21 37.24 27.73 18.04 17.65 21.69 8.61 9.32 9.51 9.36 10.04 Median 10.40 33.75 24.58 16.47 16.51 20.10 7.68 8.25 8.53 8.51 8.86 3rd Qt 9.53 31.49 23.10 15.14 15.60 18.74 6.44 7.61 7.82 7.80 8.25 Low 6.50 25.20 18.74 12.38 12.68 16.01 4.73 5.66 6.34 6.65 7.06 i ING Investment Mgmt Net Ret 10.10 31.57 25.10 17.27 17.23 18.63 7.81 9.09 8.84 9.19 9.30 Rank 60 73 45 35 29 78 44 29 43 33 38 1 R1000G Net Ret 10.44 33.49 24.04 16.45 16.52 20.39 7.66 8.24 8.35 8.00 7.83 Rank 47 53 62 50 49 47 50 50 59 69 84 45 City of Clearwater Employees Pension Fund Large Growth 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% ---- -60 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 44.45 23.91 9.45 27.34 70.57 -28.77 25.02 27.25 14.94 21.39 1st Qt 37.24 18.42 3.08 19.10 42.05 -35.21 20.09 13.75 11.40 14.88 Median 33.75 15.79 0.67 17.08 35.27 -38.68 13.39 9.47 8.55 11.42 3rd Qt 31.49 14.10 -1.77 13.70 29.76 -41.97 9.34 6.30 5.55 7.87 Low 25.20 11.48 -7.21 9.47 23.01 -48.87 4.19 -5.06 3.48 4.83 i ING Investment Mgmt Net Ret 31.57 18.95 3.04 17.10 24.43 -33.18 17.10 7.14 12.02 10.27 Rank 73 19 26 49 92 15 37 69 24 61 1 R1000G Net Ret 33.49 15.26 2.63 16.72 37.21 -38.43 11.82 9.09 5.27 6.30 Rank 53 58 33 56 39 48 58 58 81 83 46 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Large Growth Portfolios 21% 20% 19% 18% 17% I 16% I5% 14% i 13% ___1______ 12% 11% ___�______ 10% 9% 8% 7% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 __2,, 13 Scp 13 Jun 13 Mar 13 Dcc 12 High 19.84 19.34 20.62 15.07 14.04 I st Qt 17.88 17.68 1 8.98 1 3.46 11.68 Median 16.46 16.59 18.02 12.38 10.58 3rd Qt 15.15 15.39 16.79 1 1.42 9.66 Low 13.17 13.69 15.29 9.73 8.02 i 7NG 7nvestinent Mgmt Net Ret 17.27 17.58 1 9.21 14.11 12.80 Rank 34 26 19 14 10 I R 1000 Net Ret 1 6.45 1 6.94 1 8.68 13.06 11.35 Rank 50 40 34 35 33 ING Investment Mgmt Value Added Analysis - Net of Fee 6.0% 4.0% 2.0% 2.0 0.6 0.7 0.5 0.6 0.3 0.0% -0. 0.4 0.4 -0.3 2.0% -4.0% 4 E> 4.8 -6.0% -8.0% -10.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.RI OOOG ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 47 City of Clearwater Employees Pension Fund Risk Measure Summary ING Investment Mgmt Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 5 5 30 33 Positive Periods 4 4 9 9 15 15 74 71 Up Market Capture 0.94 1.04 0.97 0.95 Down Market Capture 1.01 1.10 0.79 Batting Average 0.25 0.50 0.45 0.53 Worst Quarter 1.17 2.06 12,86 13,14 12,86 13,14 18,51 22,71) Best Quarter 10.10 10.44 17.02 14.69 17.02 16.32 23.26 26.75 Worst 4 Quarters 31.57 33.49 3.04 2.63 3.04 2.63 33,74 45,64 Best 4 Quarters 31.57 33.49 32.37 33.49 43.38 49.75 44.38 49.75 Standard Deviation 8.12 7.55 15.97 15.44 17.05 16.89 16.33 18.56 Beta 1.00 1.03 0.99 0.85 Alpha 0,40 0.09 0,30 0.61 R-Squared 0.99 0.99 0.96 0.93 Sharpe Ratio 3.88 4.43 1.08 1.06 1.09 1.20 0.49 0.33 Treynor Ratio 31.42 16.72 18.79 9.50 Tracking Error 0.87 1.98 3.62 5.26 Information Ratio 1..75 0.39 0,43 0.22 -j 48 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios 3 Years Ending 12/31/13 24.0 ro 22.5 21.0 c 19.5 �• • • 0 18.0 • • 16.5 : �' �. • Median • • • : . Return 15.0 •• .I • • .P• • • 1 • • • 13.5 . .. 12.0 • • 10.5 • 9.0 9.0 10.5 12.0 13.5 15.0 16.5 18.0 19.5 21.0 22.5 24.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i ING Investment Mgmt 17.27 35 15.97 41 1 R1000G 16.45 50 15.44 30 Median 16.47 16.48 5 Years Ending 12/31/13 29.9 ro 28.1 26.3 24.5 ' 0 22.7 • . • 20.9 ' • • • Z I • • i • . • Median 19.1 •' • ' ••. Return • ]a • • 17.4 • • • • Q 15.6 • • 13.8 ' 12.0 12.0 13.1 14.2 15.3 16.4 17.5 18.6 19.7 20.8 21.9 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i ING Investment Mgmt 18.63 78 17.05 38 1 R1000G 20.39 47 16.89 35 Median 20.10 17.66 49 City of Clearwater Employees Pension Fund Equity Summary Statistics ING Investment Mgmt Period Ending 12/13 Portfolio RIOOOG Total Number Of Securities 60 625 Equity Market Value 124,536,455 Average Capitalization $(000) 96,585,277 101,496,615 Median Capitalization $(000) 35,042,055 8,061,046 Equity Segment Yield 1.09 1.57 Equity Segment P/E -Average 23.02 23.60 Equity Segment P/E - Median 25.55 22.82 Equity Segment Beta 0.92 0.91 Price/Book Ratio 3.92 4.76 Debt/Equity Ratio 43.67 47.67 Five Year Earnings Growth 17.41 13.65 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Apple Inc 6,256,377 5.03 18.38 Google Inc 6,148,215 4.94 27.95 Gilead Sciences Inc 3,677,841 2.96 19.59 Home Depot Inc 3,085,280 2.48 9.09 Comcast Corp New 2,953,691 2.37 15.53 Pepsico Inc 2,801,713 2.25 5.04 Oracle Corp 2,764,629 2.22 15.76 Mastercard Inc 2,731,954 2.20 24.29 Starbucks Corp 2,731,892 2.20 2.17 Union Pac Corp 2,718,240 2.18 8.68 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Google Inc 27.95 Ulta Salon Cosmetcs -19.20 Ameriprise Finl Inc 26.97 Anadarko Pete Corp -14.52 Cvs Corp 26.59 Tibco Software Inc -12.15 Flowserve Corp 26.58 Waste Connections In -3.66 McKesson Hboc Inc 25.98 Netapp Inc -3.12 Mastercard Inc 24.29 Gap Inc -2.45 Chipotle Mexican Gri 24.28 E M C Corp Mass -1.60 Macys Inc. 24.00 Whole Foods Mkt Inc -1.15 Cognizant Technology 22.97 Eog Res Inc -0.75 Allergan Inc 22.87 Liberty Media Corp D -0.48 50 City of Clearwater Employees Pension Fund Equity Contribution to Return ING Investment Mgmt Period Ending 12/13 Portfolio RIOOOG Total Number Of Securities 60 625 Equity Market Value 124,536,455 Average Capitalization $(000) 96,585,277 101,496,615 Median Capitalization $(000) 35,042,055 8,061,046 Equity Segment Yield 1.09 1.57 Equity Segment P/E -Average 23.02 23.60 Equity Segment P/E - Median 25.55 22.82 Equity Segment Beta 0.92 0.91 Price/Book Ratio 3.92 4.76 Debt/Equity Ratio 43.67 47.67 Five Year Earnings Growth 17.41 13.65 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Google Inc 6,148,215 4.94 27.95 Apple Inc 6,256,377 5.03 18.38 Gilead Sciences Inc 3,677,841 2.96 19.59 Cvs Corp 2,663,120 2.14 26.59 Mastercard Inc 2,731,954 2.20 24.29 McKesson Hboc Inc 2,450,052 1.97 25.98 Flowserve Corp 2,013,318 1.62 26.58 Cognizant Technology 2,323,550 1.87 22.97 Allergan Inc 2,102,744 1.69 22.87 Ameriprise Finl Inc 1,719,998 1.38 26.97 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Ulta Salon Cosmetcs 1,270,203 1.02 -19.20 Anadarko Pete Corp 1,192,180 0.96 -14.52 Tibco Software Inc 596,619 0.48 -12.15 E M C Corp Mass 2,706,417 2.17 -1.60 Netapp Inc 1,330,879 1.07 -3.12 Waste Connections In 988,220 0.79 -3.66 Gap Inc 1,409,225 1.13 -2.45 Whole Foods Mkt Inc 1,533,073 1.23 -1.15 Eog Res Inc 2,118,141 1.70 -0.75 Liberty Media Corp D 1,152,562 0.93 -0.48 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 4.59 4.84 1..22 1.73 0,1.4 0.02 ().I.I. Materials 3.46 4.53 11.54 9.80 0.06 0.01 0.07 Industrials 13.06 12.19 12.69 12.15 0.07 0.01 0.09 Consumer Discretionary 21.17 19.94 7.63 10.41 0,59 0.00 0,59 Consumer Staples 12.95 12.27 6.86 7.35 0,06 0,02 0,08 Health Care 12.11 12.20 15.49 10.98 0.55 0.00 0.55 Financials 5.20 5.33 17.60 10.72 0.36 0.00 0.36 Information Technology 27.46 26.46 12.11 12.83 0,20 0.02 0,1.7 Telecom. Services 0.00 2.00 6.40 0.00 0.08 0.08 Utilities 0.00 0.23 8.75 0.00 0.00 0.00 100.00 100.00 10.62 10.44 0.05 0.13 0.18 Index-R1000G Stock Selection Return Attribution [Portfolio Market Value Sector Percentage] * [ Portfolio Sector Return-Index Sector Return] Sector Selection Return Attribution [Portfolio Sector Percentage-Index Sector Percentage] * [Index Sector Return-Index Total Return] Trading Effect -0.31% [Actual Return 10.32%] - [Buy Hold Return 10.62%] 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 12/13 %Allocation %Return %Variance Energy 4.59 -1.22 194.84 1.73 -0.11 Materials 3.46 11.54 4.53 9.80 0.07 Industrials 12 9 12159 0.09 Con.Discretionary 994 610.41 -0.59 Consumer Staples 12.95 6.86 -0.08 12.27 7.35 Health Care 12.11 15.49 0.55 12.20 10.98 Financials 5.20 17.60 0.36 5.33 10.72 27.46 12.11 -0.17 Infomation Tech. 26.46 12.83 Telecom. Services 0.00 0.08 2.00 6.40 Utilities 0.00 0.00 0.23 8.75 ® ING Investment Mgmt ❑ RIOOOG 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 12/31/13 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 ti -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 EM 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 10.02 32.94 32.94 15.92 16.76 3.98 R1000V 10.01 32.54 32.54 16.06 16.67 3.90 Asset Growth($000) Beginning Market Value 40,456 95,899 95,899 42,840 30,751 26,197 Net Contributions&Withdrawals 0 -66,500 -66,500 -25,811 -25,811 -25,811 Gain/Loss+Income 4,055 15,112 15,112 27,482 39,572 44,125 Ending Market Value 44,511 44,511 44,511 44,511 44,511 44,511 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 12/31/13 Asset Allocation($000) Cash&Equiv $0 0.00% Domestic Equity $44,511 100.00% Risk/Return Analysis Periods from 6/07 to 12/13 Alpha 0.02 Beta 1.00 R-Squared 1.00 4.5 4.0 3.5 3.0 cC � 2.5 2.0 c 1.5 Q 1.0 0.5 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 3.98 21.20 0.15 0.09 1 R1000V 3.90 21.27 0.15 T" 91-Day Treasury Bill 0.77 0.72 0.00 55 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 45% 40% 35% -------- 30 25% n 1 --- 20 ------ ------ 15% --- 10% --- ------ ------ 5% -1---- 0%1 U Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Qtr Year Years Years Years Years Years High 12.09 40.77 30.06 19.65 22.63 22.19 8.53 1st Qt 10.37 36.71 26.51 17.10 17.08 19.68 7.19 Median 9.45 33.09 23.76 16.14 15.95 17.56 6.47 3rd Qt 7.66 29.28 19.60 14.41 14.55 16.39 5.72 Low 3.98 16.93 10.69 10.05 10.00 13.92 4.53 n NTGI-QM R1 000V Net Ret 10.02 32.94 25.29 15.92 15.88 16.76 5.39 Rank 32 50 34 55 52 70 85 1 R1000V Net Ret 10.01 32.54 24.80 16.06 15.92 16.67 5.32 Rank 33 54 42 53 52 71 86 56 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% _------ 20% ---- -�---- -I---- - 10% ra ------- 0% - ---- -10% -20% -30% -40% - ---- -50% 2013 2012 2011 2010 2009 2008 High 40.77 20.66 14.43 23.53 44.12 -23.77 1st Qt 36.71 17.66 6.68 17.03 30.66 -33.03 Median 33.09 15.50 1.28 14.52 23.94 -35.56 3rd Qt 29.28 8.58 -0.79 11.85 20.36 -38.13 Low 16.93 4.70 -6.00 9.74 14.39 -44.05 n NTGI-QM R1 000V Net Ret 32.94 18.09 -0.77 15.75 20.35 -36.86 Rank 50 21 74 37 76 66 1 R1000V Net Ret 32.54 17.50 0.39 15.51 19.69 -36.85 Rank 54 28 63 43 82 65 57 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Large Value Portfolios 22% 20% 18% 16% i 14% 12% rx _1______ 10% - �__1______ 8% 6% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 Dcc 13 Sep 13 Jun 13 Mar 13 Dcc 12 High 19.65 19.69 21.64 14.72 12.59 I st Qt 17.15 1 7.53 1 9.59 13.I I 11.25 Median 16.21 16.27 18.55 11.99 10.30 3rd Qt 14.90 14.82 17.41 11.05 9.14 Low 11.86 12.84 14.72 8.97 7.20 n NTG7-QM RIOOOV Net Ret 1 5.92 16.10 1 8.38 12.63 10.70 Rank 58 56 54 38 40 1 RIOOOV Net Ret 1 6.06 1 6.25 1 8.51 12.74 10.86 Rank 56 52 51 35 38 NTGI-QM RIOOOV Value Added Analysis - Net of Fee 1.0% 0.8% 0.6% 0.4% 0.4 0.3 0.2% 0.2 O.1 O.1 O.1 O.1 0.0% O.O 0.0 0.0 0.0 O.O O.O O.O O.O O.O O.O O.O -0.2% -0.4% -0.6% -Oa8% -L2% -L4% 1.3 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.RI OOOV ® Cumulative Value Added - 2 Yr Rolling Avg(AillllAahl ed) 58 City of Clearwater Employees Pension Fund Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 5 5 11 11 Positive Periods 4 4 9 9 15 15 15 15 Up Market Capture 1.01 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 3.22 3.20 16,15 16,21 16,63 1 6,77 22,13 22,17 Best Quarter 12.60 12.31 12.60 13.11 18.29 18.24 18.29 18.24 Worst 4 Quarters 32.94 32.54 0,77 0.39 1..73 1,90 42,31 42,42 Best 4 Quarters 32.94 32.54 32.94 32.54 54.33 53.57 54.33 53.57 Standard Deviation 9.18 8.98 16.03 16.23 19.55 19.65 21.20 21.27 Beta 1.02 0.99 0.99 1.00 Alpha 0,04 0.02 0.04 0.02 R-Squared 1.00 1.00 1.00 1.00 Sharpe Ratio 3.58 3.62 0.99 0.98 0.85 0.84 0.15 0.15 Treynor Ratio 32.32 16.05 16.74 3.22 Tracking Error 0.27 0.93 0.72 0.64 Information Ratio 1.23 0,1.7 0.08 0.09 -j 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Value Portfolios 3 Years Ending 12/31/13 24.0 ro 22.0 c 20.0 !� • 18.0 i • 16.0 Median b • •. Return N 14.0 ;• • • •� t • N C Q 12.0 • .• • • • db • • 10.0 8.01 U 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 15.92 55 16.03 51 1 R1000V 16.06 53 16.23 59 Median 16.14 16.06 5 Years Ending 12/31/13 25.9 ro 24.1 22.3 • 20.5 • • •• f • 18.8 • • • 17.0 • �� • Median • • • •?� ! Return 15.2 • ' �. • i • • • 13.4 • • Q 11.6 9.8 8.0 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 n NTGI-QM R1000V 16.76 70 19.55 57 1 R1000V 16.67 71 19.65 61 Median 17.56 19.37 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 12/31/13 Portfolio Performance 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 EM Eagle Capital Management Russell 1000 Value Incept Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD 1/31/13 Eagle Capital Management 10.17 17.30 22.26 28.26 Russell 1000 Value 10.01 14.35 18.01 24.45 Asset Growth(5000) Beginning Market Value 38,696 36,344 34,870 33,239 Net Contributions&Withdrawals 0 -1 -1 -2 Gain/Loss+Income 3,935 6,287 7,761 1 9,392 Ending Market Value 42,630 42,630 42,630 42,630 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Oracle Corp Information Technology 7.51 Energy 7.27 Berkshire Hathaway I Financials 6.85 Materials 7.73 Aon Plc Financials 6.06 Industrials 1.30 Microsoft Corp Information Technology 5.40 Consumer Discretionary 14.49 Ecolab Inc Materials 4.49 Consumer Staples 18.71 Liberty Global Plc Consumer Discretionary 4.35 Health Care 6.37 Coca Cola Co Consumer Staples 3.90 Financials 23.84 Morgan Stanley Financials 3.75 Information Technology 20.29 Unitedhealth Group I Health Care 3.67 Telecom Services 0.00 Comcast Corp New Consumer Discretionary 3.62 Utilities 0.00 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 12/31/13 Asset Allocation($000) Cash&Equiv $538 1.26% Domestic Equity $42,092 98.74% Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 12/13 Alpha N/A Beta N/A R-Squared N/A 30.0 E 25.0 20.0 15.0 b N 10.0 5.0 C Q 0.0 5.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio E Eagle Capital Management 28.26 6.79 4.15 -0.44 1 Russell 1000 Value 24.45 8.83 2.76 T" 91-Day Treasury Bill 0.07 0.02 0.00 62 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 20% 18% E 16% 14% 12% 10% E--Z------- 8% 6% 4% 2% Last Last 2 Qtr Qtrs High 12.09 18.64 1st Qt 10.37 15.92 Median 9.45 14.79 3rd Qt 7.66 11.32 Low 3.98 7.92 Eagle Capital Management Net Ret 10.17 17.30 Rank 27 16 1 Russell 1000 Value Net Ret 10.01 14.35 Rank 33 56 63 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 42% 40% 38% 36% ----------- 34 32% 30% ----------- 28% 26% 24% 22% 20% 18% 16% 2013 High 40.77 1st Qt 36.71 Median 33.09 3rd Qt 29.28 Low 16.93 E Eagle Capital Management Net Ret 28.26 Rank 79 1 Russell 1000 Value Net Ret 32.54 Rank 54 64 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 12/13 Portfolio Russell 1000 Value Total Number Of Securities 30 662 Equity Market Value 42,092,099 Average Capitalization $(000) 112,783,170 113,794,056 Median Capitalization $(000) 40,078,677 6,549,482 Equity Segment Yield 1.19 2.24 Equity Segment P/E -Average 19.96 17.31 Equity Segment P/E - Median 20.22 18.99 Equity Segment Beta 0.74 1.17 Price/Book Ratio 2.61 1.45 Debt/Equity Ratio 49.15 51.61 Five Year Earnings Growth 8.07 2.91 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Oracle Corp 3,160,276 7.51 15.76 Berkshire Hathaway I 2,881,008 6.85 4.45 Aon Plc 2,550,256 6.06 12.94 Microsoft Corp 2,272,001 5.40 13.23 Ecolab Inc 1,887,287 4.49 5.86 Liberty Global Plc 1,829,744 4.35 11.79 Coca Cola Co 1,640,007 3.90 9.81 Morgan Stanley 1,577,408 3.75 16.56 Unitedhealth Group I 1,543,650 3.67 5.55 Comcast Corp New 1,521,340 3.62 15.46 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Dish Network Corp 28.68 Anadarko Pete Corp -14.52 Google Inc 27.95 Altera Corp -12.06 Constellation Brands 22.61 Apache Corp 1.16 Thermo Fisher Scient 21.02 Berkley W R Corp 1.47 3m Co 18.03 Noble Energy Inc 1.83 Morgan Stanley 16.56 Loews Corp 3.34 Fidelity Natl Inform 16.09 Berkshire Hathaway I 4.45 Oracle Corp 15.76 Twenty First Centy F 5.01 Comcast Corp New 15.46 Pepsico Inc 5.04 Microsoft Corp 13.23 Unitedhealth Group I 5.55 65 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 12/13 Portfolio Russell 1000 Value Total Number Of Securities 30 662 Equity Market Value 42,092,099 Average Capitalization $(000) 112,783,170 113,794,056 Median Capitalization $(000) 40,078,677 6,549,482 Equity Segment Yield 1.19 2.24 Equity Segment P/E -Average 19.96 17.31 Equity Segment P/E - Median 20.22 18.99 Equity Segment Beta 0.74 1.17 Price/Book Ratio 2.61 1.45 Debt/Equity Ratio 49.15 51.61 Five Year Earnings Growth 8.07 2.91 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Oracle Corp 3,160,276 7.51 15.76 Google Inc 1,456,923 3.46 27.95 Aon Plc 2,550,256 6.06 12.94 Dish Network Corp 1,083,104 2.58 28.68 Microsoft Corp 2,272,001 5.40 13.23 Morgan Stanley 1,577,408 3.75 16.56 Constellation Brands 1,097,928 2.61 22.61 Thermo Fisher Scient 1,135,770 2.70 21.02 Comcast Corp New 1,521,340 3.62 15.46 Liberty Global Plc 1,829,744 4.35 11.79 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Altera Corp 608,311 1.45 -12.06 Anadarko Pete Corp 412,464 0.98 -14.52 Berkley W R Corp 876,478 2.08 1.47 Apache Corp 1,185,972 2.82 1.16 News Corp New 188,309 0.45 12.20 Noble Energy Inc 1,457,554 3.47 1.83 Loews Corp 1,326,600 3.15 3.34 Nestle S A 1,059,696 2.52 5.73 Pepsico Inc 1,219,218 2.90 5.04 Twenty First Centy F 1,470,524 3.50 5.01 66 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Eagle Capital Management Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 6.90 14.99 1.53 9.98 0,58 0.00 0,58 Materials 8.06 2.89 7.03 11.14 0,33 0.06 0,27 Industrials 1.23 10.02 18.03 14.89 0.04 0,43 0,39 Consumer Discretionary 14.19 6.50 13.59 11.22 0.34 0.09 0.43 Consumer Staples 18.99 5.80 10.01 11.62 0,31 0.21 0,09 Health Care 6.36 13.01 11.59 8.89 0.17 0.07 0.25 Financials 24.47 28.98 8.49 9.31 0,20 0.03 0,1.7 Information Technology 19.80 9.00 14.39 12.04 0.47 0.22 0.69 Telecom. Services 0.00 2.59 7.13 0.00 0.07 0.07 Utilities 0.00 6.22 2.64 0.00 0.46 0.46 100.00 100.00 10.39 10.00 0,41. 0.80 0.39 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 0.00% [Actual Return 10.39%] - [Buy Hold Return 10.39%] 67 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Eagle Capital Management Quarter Ending 12/13 %Allocation %Return %Variance Energy 14.99 9.98 -0.58 Materials 8.06 2.89 11.14 -0.27 Industrials 18.03 -0.39 10.02 14.89 Con.Discretionary 6.50 14.19 11.22 59 0.43 Consumer Staples 18.99 0.01 -0.09 5.80 11.62 Health Care 11.59 0.25 13.01 ;79�.89 Financials 24.47 49 -0.17 28.98 31 1 9.80 14.39 0.69 Infomation Tech. 9.00 1 12.04 Telecom. Services 00 0.07 12.59 17.13 0.46 Utilities p 6.22 2.64 ® Eagle Capital Management ❑ Russell 1000 Value 68 City of Clearwater Employees Pension Fund Manning and Napier as of 12/31/13 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 All 6.0 4.0 2.0 0.0 -2.0 Qtr 2 Qtr Incept 1/31/13 Manning and Napier Russell 1000 Value Incept Net of Fee Returns Qtr 2 Qtr 1/31/13 Manning and Napier 8.57 12.89 20.74 Russell 1000 Value 10.01 14.35 24.45 Asset Growth(5000) Beginning Market Value 36,815 35,408 33,104 Net Contributions&Withdrawals -1 -1 -2 Gain/Loss+Income 3,155 4,563 6,867 Ending Market Value 39,969 39,969 39,969 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Exxon Mobil Corp Energy 4.07 Energy 15.74 Johnson&Johnson Health Care 3.94 Materials 1.60 Microsoft Corp Information Technology 3.87 Industrials 14.47 Pfizer Inc Health Care 3.70 Consumer Discretionary 6.09 Chevron Corp Energy 3.64 Consumer Staples 21.05 Wal Mart Stores Inc Consumer Staples 3.50 Health Care 24.08 Apple Inc Information Technology 3.10 Financials 0.83 Coca Cola Co Consumer Staples 3.06 Information Technology 14.69 Procter&Gamble Co Consumer Staples 3.03 Telecom Services 1.32 Novartis A G Health Care 2.84 Utilities 0.12 69 City of Clearwater Employees Pension Fund Manning and Napier as of 12/31/13 Asset Allocation($000) Cash&Equiv $1,693 4.24% Domestic Equity $38,276 95.76% Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 12/13 Alpha N/A Beta N/A R-Squared N/A 26.0 24.0 22.0 20.0 18.0 16.0 14.0 7� 12.0 N 10.0 8.0 6.0 Q 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Manning and Napier 20.74 7.91 2.61 -1.52 1 Russell 1000 Value 24.45 8.83 2.76 T" 91-Day Treasury Bill 0.07 0.02 0.00 70 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 20% 18% 16% 14% 12% 10% ---2------- 8% 6% 4% 2% Last Last 2 Qtr Qtrs High 12.09 18.64 1st Qt 10.37 15.92 Median 9.45 14.79 3rd Qt 7.66 11.32 Low 3.98 7.92 Manning and Napier Net Ret 8.57 12.89 Rank 71 70 1 Russell 1000 Value Net Ret 10.01 14.35 Rank 33 56 71 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 42% 40% 38% 36% ----------- 34 32% 30% ----------- 28% 26% 24% 22% 20% 18% 16% 2013 High 40.77 1st Qt 36.71 Median 33.09 3rd Qt 29.28 Low 16.93 M Manning and Napier Net Ret 20.74 Rank 88 1 Russell 1000 Value Net Ret 32.54 Rank 54 72 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 12/13 Portfolio Russell 1000 Value Total Number Of Securities 91 662 Equity Market Value 38,275,993 Average Capitalization $(000) 153,811,135 113,794,056 Median Capitalization $(000) 48,062,261 6,549,482 Equity Segment Yield 2.92 2.24 Equity Segment P/E -Average 16.71 17.31 Equity Segment P/E - Median 18.60 18.99 Equity Segment Beta 0.77 1.17 Price/Book Ratio 2.94 1.45 Debt/Equity Ratio 39.08 51.61 Five Year Earnings Growth 7.11 2.91 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Exxon Mobil Corp 1,554,331 4.07 18.43 Johnson& Johnson 1,505,190 3.94 6.38 Microsoft Corp 1,479,159 3.87 13.23 Pfizer Inc 1,413,789 3.70 7.51 Chevron Corp 1,388,999 3.64 3.67 Wal Mart Stores Inc 1,338,674 3.50 7.02 Apple Inc 1,182,820 3.10 18.38 Coca Cola Co 1,168,205 3.06 9.81 Procter& Gamble Co 1,157,080 3.03 8.53 Novartis A G 1,086,818 2.84 4.78 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Hewlett Packard Co 34.08 Newmont Mug Corp Hld -17.34 Cardinal Health Inc 28.69 Stanley Black & Deck -10.35 Northrop Corp 20.96 Ericsson L M Tel Co -8.31 Norfolk Southern Cor 20.73 Cisco Sys Inc -3.44 McGraw Hill Inc 19.67 Mobile Telesystems O -2.83 Abbvie Inc 19.10 Teck Resources Ltd -1.28 Exxon Mobil Corp 18.43 Telekomunikasi Ind -1.27 Raytheon Co 18.40 Smucker J M Co -0.82 Apple Inc 18.38 Target Corp -0.47 Archer Daniels Midla 18.36 Magna Intl Inc -0.21 73 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 12/13 Portfolio Russell 1000 Value Total Number Of Securities 91 662 Equity Market Value 38,275,993 Average Capitalization $(000) 153,811,135 113,794,056 Median Capitalization $(000) 48,062,261 6,549,482 Equity Segment Yield 2.92 2.24 Equity Segment P/E -Average 16.71 17.31 Equity Segment P/E - Median 18.60 18.99 Equity Segment Beta 0.77 1.17 Price/Book Ratio 2.94 1.45 Debt/Equity Ratio 39.08 51.61 Five Year Earnings Growth 7.11 2.91 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Exxon Mobil Corp 1,554,331 4.07 18.43 Apple Inc 1,182,820 3.10 18.38 Microsoft Corp 1,479,159 3.87 13.23 Intel Corp 837,054 2.19 14.32 3m Co 646,132 1.69 18.03 Coca Cola Co 1,168,205 3.06 9.81 Pfizer Inc 1,413,789 3.70 7.51 Royal Dutch Shell PI 1,073,611 2.81 9.77 Siemens A G 685,347 1.79 14.94 Procter& Gamble Co 1,157,080 3.03 8.53 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Ericsson L M Tel Co 266,244 0.70 -8.31 Cisco Sys Inc 423,205 1.11 -3.44 Newmont Mug Corp Hld 41,546 0.11 -17.34 Stanley Black & Deck 68,183 0.18 -10.35 Mobile Telesystems O 104,343 0.27 -2.83 Target Corp 210,309 0.55 -0.47 Teck Resources Ltd 66,768 0.17 -1.28 Telekomunikasi Ind 65,785 0.17 -1.27 Smucker J M Co 73,570 0.19 -0.82 Magna Intl Inc 98,718 0.26 -0.21 74 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Manning and Napier Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 15.83 14.99 8.50 9.98 0,24 0.00 0,24 Materials 1.63 2.89 7.40 11.14 0.0 �'�.�'�1 0,08 Industrials 13.92 10.02 12.92 14.89 0,27 0.19 0,08 Consumer Discretionary 6.29 6.50 5.37 11.22 0,37 0.00 0,37 Consumer Staples 21.40 5.80 7.23 11.62 0,94 0.25 0,69 Health Care 24.25 13.01 8.18 8.89 0,1.7 0,13 0 Financials 0.78 28.98 15.30 9.31 0.05 0.19 0.24 Information Technology 14.35 9.00 11.55 12.04 0,07 0.11 0.04 Telecom. Services 1.42 2.59 0.40 7.13 (').I.(') 0.03 0,06 Utilities 0.11 6.22 13.86 2.64 0.01 0.45 0.46 100.00 100.00 8.93 10.00 2,16 1.09 1.,0 7 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 0.01% [Actual Return 8.95%] - [Buy Hold Return 8.93%] 75 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Manning and Napier Quarter Ending 12/13 %Allocation %Return %Variance Energy 15.83 .50 14.99 9.98 -0.24 Materials 1.63 0 2.89 11.14 -0.08 Industrials 10 0292 214289 -0.08 Con.Discretionary 6.50 11.22 -0.37 ME Consumer Staples 21.40 -0.69 5.80 11.62 Health Care 24.25 8.18 -0.30 13.01 8.89 Financials 0.78 28.98 9.31 15.30 0.24 Infomation Tech. 14.35 00111011M 11.55 0.04 9.00 1 12.04 Telecom. Services 1.42 -0.06 2.59 7.13 1 13.86 0.46 Utilities 6.22 2.64 ® Manning and Napier ❑ Russell 1000 Value 76 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 12/31/13 Portfolio Performance 40.0 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 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 7.45 37.36 37.36 18.74 25.51 10.76 13.03 R Mid Cap 8.39 34.76 34.76 15.87 22.35 10.22 12.06 Asset Growth(5000) Beginning Market Value 97,737 87,995 87,995 81,829 34,302 79,591 15,585 Net Contributions&Withdrawals -1 -14,005 -14,005 -23,015 -23,016 -23,016 -23,016 Gain/Loss+Income 7,278 31,024 31,024 46,201 93,728 48,439 112,445 Ending Market Value 105,014 105,014 105,014 105,014 105,014 105,014 105,014 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Transdigm Group Inc Industrials 2.20 Energy 6.26 Regeneron Pharmacem Health Care 2.17 Materials 4.04 Brunswick Corp Consumer Discretionary 2.13 Industrials 19.22 Lincoln Natl Corp In Financials 2.12 Consumer Discretionary 18.36 Allstate Corp Financials 2.11 Consumer Staples 0.70 Computer Sciences Co Information Technology 2.05 Health Care 14.14 Ihs Inc Industrials 1.77 Financials 16.53 Huntington Ingalls I Industrials 1.76 Information Technology 16.51 Wyndham Worldwide Co Consumer Discretionary 1.71 Telecom Services 0.00 Ashland Inc New Materials 1.66 Utilities 4.24 Holdings and allocations only include SMA accounts. 77 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 12/31/13 Asset Allocation($000) Cash&Equiv $3,432 3.27% Domestic Equity $101,583 96.73% Risk/Return Analysis Periods from 3/88 to 12/13 Alpha 0.09 Beta 1.14 R-Squared 0.83 14.0 13.0 12.0 11.0 2 10.0 9.0 N 8.0 7.0 6.0 Q 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 13.03 23.02 0.40 0.13 1 R Mid Cap 12.06 18.26 0.46 T" 91-Day Treasury Bill 3.73 1.26 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 12/13 55% 50% 45% 40% --- 35% 30% 25% 20% --- 15% --- --- -- --- 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 11.73 49.42 35.36 20.30 21.55 27.08 13.33 12.27 13.18 13.12 13.96 1st Qt 11.07 41.40 28.90 17.82 19.23 22.80 11.13 10.76 11.67 11.72 12.51 Median 9.76 35.57 25.78 15.82 18.28 21.94 9.24 9.26 9.43 9.83 11.72 3rd Qt 8.36 33.53 24.98 15.26 17.45 20.54 7.90 7.76 9.07 9.46 10.16 Low 7.84 30.02 22.50 13.79 15.77 18.37 6.42 5.62 8.05 8.56 9.31 M Mid Cap Equity Comp Net Ret 7.45 37.36 29.45 18.74 21.00 25.51 10.43 10.40 10.67 10.35 10.76 Rank 95 40 23 19 11 11 27 25 33 48 60 1 R Mid Cap Net Ret 8.39 34.76 25.71 15.87 18.20 22.35 8.21 7.83 8.73 9.16 10.22 Rank 73 60 50 48 51 34 62 66 79 83 74 79 City of Clearwater Employees Pension Fund Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% ----30% 20% -- ---- 20% ---- Tr-- 10% ---- 1-- --- -10% ---- -20% -30% -40% --_- -50% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 49.42 23.12 7.47 29.96 62.84 -26.70 16.25 22.62 16.68 26.65 1st Qt 41.40 19.38 0.93 27.04 41.66 -34.41 8.84 18.34 12.74 21.86 Median 35.57 17.84 -1.77 25.33 37.46 -36.57 7.20 12.62 12.06 17.63 3rd Qt 33.53 14.17 -4.40 20.98 32.80 -39.97 2.65 10.46 9.28 16.44 Low 30.02 10.42 -6.62 15.56 19.07 -43.43 -1.40 10.08 3.29 12.11 M Mid Cap Equity Comp Net Ret 37.36 22.00 -0.10 28.03 45.33 -41.79 10.26 12.53 7.85 14.48 Rank 40 12 29 13 11 89 15 56 79 89 1 R Mid Cap Net Ret 34.76 17.26 -1.56 25.49 40.47 -41.46 5.59 15.27 12.65 20.23 Rank 60 59 39 48 35 89 65 46 39 29 80 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 4 4 31 32 Positive Periods 4 4 10 10 16 16 72 71 Up Market Capture 1.07 1.09 1.04 1.16 Down Market Capture 0.93 0.86 1.16 Batting Average 0.25 0.58 0.65 0.56 Worst Quarter 1.61 2.21 17.17 18,90,90 17.17 18,90,90 26,78 27,28 Best Quarter 12.83 12.95 17.31 12.95 23.05 20.80 49.24 20.80 Worst 4 Quarters 37.36 34.76 (),I.O 1,67 ().➢.() 1,67 41.79 41.,46 Best 4 Quarters 37.36 34.76 37.36 34.76 65.80 67.72 77.74 67.72 Standard Deviation 10.08 8.81 18.17 17.99 19.62 20.26 23.02 18.26 Beta 1.05 0.99 0.95 1.14 Alpha 0.15 0.68 0.89 0.09 R-Squared 0.90 0.96 0.97 0.83 Sharpe Ratio 3.70 3.94 1.03 0.88 1.29 1.10 0.40 0.46 Treynor Ratio 35.51 18.83 26.61 8.14 Tracking Error 4.41 3.87 3.78 9.93 Information Ratio 0.48 0.64 0.66 0.13 -j 81 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios 3 Years Ending 12/31/13 20.0 ro 19.0 ' c 18.0 17.0 f w . . 16.0 . • Median b • • Return N 15.0 • : • _ • • Q 14.0 . •� 13.0 ' • 12.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 18.74 19 18.17 20 1 R Mid Cap 15.87 48 17.99 20 Median 15.82 19.10 5 Years Ending 12/31/13 30.0 ro 28.0 • c 26.0 24.0 • w • 0 22.0 Median d . Rewun N 20.0 • ' f • C Q 18.0 • 16.0 • 14.0 15.0 16.1 17.2 18.3 19.4 20.5 21.6 22.7 23.8 24.9 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 25.51 11 19.62 20 1 R Mid Cap 22.35 34 20.26 28 Median 21.94 20.53 82 City of Clearwater Employees Pension Fund Artisan Partners as of 12/31/13 Portfolio Performance 45.0 40.0 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 6.24 39.21 39.21 18.95 27.67 12.90 10.75 R Mid Cap G 8.23 35.76 35.76 15.63 23.38 9.77 7.96 Asset Growth(5000) Beginning Market Value 48,449 43,165 43,165 40,886 15,064 31,599 29,914 Net Contributions&Withdrawals -1 -8,003 -8,003 -13,010 -13,010 -13,010 -13,010 Gain/Loss+Income 3,023 16,309 16,309 23,595 49,417 32,882 34,567 Ending Market Value 51,471 51,471 51,471 51,471 51,471 51,471 51,471 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Regeneron Pharmacem Health Care 4.45 Energy 5.91 Ihs Inc Industrials 3.64 Materials 0.00 Borg-Warner Automoti Consumer Discretionary 2.98 Industrials 16.46 Discover Finl Svcs Financials 2.96 Consumer Discretionary 20.26 Cemer Corp Health Care 2.93 Consumer Staples 0.50 Cigna Corp Health Care 2.67 Health Care 24.28 Applied Materials In Information Technology 2.65 Financials 5.08 Linkedin Corp Information Technology 2.59 Information Technology 27.51 Trimble Navigation L Information Technology 2.47 Telecom Services 0.00 Fortune Brands Home Industrials 2.29 Utilities 0.00 83 City of Clearwater Employees Pension Fund Artisan Partners as of 12/31/13 Asset Allocation($000) Cash&Equiv $2,010 3.91% Domestic Equity $49,460 96.09% Risk/Return Analysis Periods from 7/01 to 12/13 Alpha 0.68 Beta 0.94 R-Squared 0.94 11.0 10.0 9.0 8.0 a 7.0 cC 7� 6.0 N 5.0 4.0 Q 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio r Artisan Partners 10.75 19.44 0.47 0.36 1 R Mid Cap G 7.96 19.36 0.32 T" 91-Day Treasury Bill 1.70 0.52 0.00 84 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 45% 40% 35% 1 30% --- 25% --- 20% --- 15% 10% --- "' -- 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 11.85 43.46 32.20 21.85 23.62 27.94 13.28 13.93 13.91 13.80 13.67 1st Qt 10.42 39.44 29.10 18.44 21.39 25.45 11.22 12.83 12.89 12.85 13.20 Median 9.05 37.43 26.37 16.12 19.20 23.30 8.53 9.81 10.20 11.37 11.50 3rd Qt 7.87 31.05 23.22 14.19 17.21 22.00 7.54 8.87 9.30 9.74 10.42 Low 4.84 18.29 10.42 9.07 15.83 19.86 5.56 5.75 7.45 9.61 9.92 r Artisan Partners Net Ret 6.24 39.21 29.69 18.95 22.35 27.67 11.66 13.12 12.85 12.55 12.90 Rank 84 29 19 18 17 7 21 22 31 35 36 1 R Mid Cap G Net Ret 8.23 35.76 25.39 15.63 18.23 23.38 8.05 8.53 8.79 9.15 9.77 Rank 67 60 61 55 62 43 54 77 87 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% -1--- 40% 30% r ----,P 20% -- 10% ---- 0% --- -10% ---- -20% -30% -40% ---- -50% -60% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 43.46 22.65 14.72 35.44 58.62 -32.90 34.56 22.13 26.11 21.51 1st Qt 39.44 20.66 1.60 30.79 47.62 -35.48 22.31 14.71 15.58 19.19 Median 37.43 17.65 -0.79 27.03 40.37 -42.63 17.83 13.32 13.14 16.12 3rd Qt 31.05 14.97 -4.60 24.63 35.55 -44.78 10.03 10.38 10.73 12.67 Low 18.29 4.51 -10.35 19.27 28.85 -52.14 3.71 7.24 9.77 9.09 r Artisan Partners Net Ret 39.21 20.82 0.07 33.15 51.38 -42.87 22.31 10.94 10.19 16.07 Rank 29 22 42 13 19 54 25 70 87 54 1 R Mid Cap G Net Ret 35.76 15.80 -1.66 26.39 46.30 -44.32 11.41 10.64 12.10 15.48 Rank 60 68 58 61 27 65 71 72 66 54 86 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Midcap Growth Portfolios 24% 22%-, x r 20 18% 1 r r 16% 1 14% ___1______ 1 12% 10% 8% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 __2,, 13 Sep 13 Jun 13 Mar 13 Dcc 12 High 21.85 23.26 23.59 19.24 18.06 1 st Qt 18.43 20.46 21.39 17.33 16.33 Median 16.22 18.10 19.43 15.32 14.03 3rd Qt 14.50 16.30 18.28 14.13 12.44 Low 13.25 14.30 16.12 11.11 9.19 r Artisan Partners Net Ret 18.95 21.84 22.74 18.04 17.20 Rank 17 15 14 17 9 1 R Mid Cap G Net Ret 15.63 17.65 19.53 14.24 12.91 Rank 57 52 44 72 66 Artisan Partners Value Added Analysis - Net of Fee _2.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 6.2 4.0% 2.5 2.0% 1.2 0.5 O.E> 0.0% OEM -0.1 -0.2 2.0% 1.8 1.8 -4.0% 4.6 -6.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.R Mid Cap G ® Cumulative Value Added - 2 Yr Rolling Avg(AillllAahl ed) 87 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 3 4 14 15 Positive Periods 4 4 10 10 17 16 35 34 Up Market Capture 1.10 1.08 1.05 1.03 Down Market Capture 0.88 0.76 0.90 Batting Average 0.50 0.58 0.55 0.45 Worst Quarter 3.47 2.87 14,74 19, 14,74 19, 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 39.21 35.76 0.07 2,99 0.07 2,99 42.37 44,32 Best 4 Quarters 39.21 35.76 39.21 35.76 58.59 62.98 58.59 62.98 Standard Deviation 10.90 7.36 18.77 18.40 19.16 19.55 21.18 21.87 Beta 1.03 0.95 0.93 0.94 Alpha 0.53 0.95 1.26 0.68 R-Squared 0.66 0.86 0.90 0.94 Sharpe Ratio 3.59 4.85 1.00 0.84 1.44 1.19 0.53 0.40 Treynor Ratio 38.17 19.94 29.55 11.86 Tracking Error 8.56 7.28 6.31 5.40 Information Ratio 0.31 0.37 0.53 0.36 -j 88 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios 3 Years Ending 12/31/13 25.9 ro 24.1 22.3 20.5 • 0 18.8 .••• Median N 15.2 • Return • . • • . • % • 13.4 •• ,• • • Q 11.6 • • 9.8 • 8.0 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 r Artisan Partners 18.95 18 18.77 45 1 R Mid Cap G 15.63 55 18.40 36 Median 16.12 19.11 5 Years Ending 12/31/13 31.9 ro 30.1 28.3 26.5 ... 0 24.7 • 22.9 •• :• • Median • Return b • .! • N 21.1 • 19.4 • Q 17.6 15.8 14.0 12.0 13.5 15.0 16.5 18.0 19.5 21.0 22.5 24.0 25.5 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 27.67 7 19.16 41 1 R Mid Cap G 23.38 43 19.55 53 Median 23.30 19.54 89 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 12/13 Portfolio R Mid Cap G Total Number Of Securities 65 502 Equity Market Value 49,460,406 Average Capitalization $(000) 13,451,457 12,364,458 Median Capitalization $(000) 8,947,118 6,358,503 Equity Segment Yield 0.44 1.05 Equity Segment P/E -Average 41.29 28.01 Equity Segment P/E - Median 31.05 23.33 Equity Segment Beta 0.97 1.01 Price/Book Ratio 6.56 5.17 Debt/Equity Ratio 22.34 50.78 Five Year Earnings Growth 11.43 11.69 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Regeneron Pharmaceut 2,201,920 4.45 -12.03 Ihs Inc 1,800,647 3.64 4.83 Borg-Warner Automoti 1,476,024 2.98 10.56 Discover Finl Svcs 1,462,869 2.96 11.13 Cemer Corp 1,449,853 2.93 6.07 Cigna Corp 1,320,948 2.67 13.82 Applied Materials In 1,313,040 2.65 1.45 Linkedin Corp 1,279,297 2.59 -11.88 Trimble Navigation L 1,223,626 2.47 16.80 Fortune Brands Home 1,133,406 2.29 10.03 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Ipg Photonics Corp 37.83 Chart Inds Inc -22.27 Illumina Inc 36.86 Lululemon Athletica -19.24 Incyte Pharmaceutica 32.71 Ctrip Com Intl Ltd -15.08 Intercontinentalexch 24.35 Commvault Systems In -14.74 Chipotle Mexican Gri 24.28 Regeneron Pharmaceut -12.03 Athenahealth Inc 23.89 Linkedin Corp -11.88 Lpl Finl Hldgs Inc 23.34 Concur Technologies -6.62 Melco Pbl Entmnt Ltd 23.22 Flir Sys Inc -3.85 Autodesk Inc 22.25 Waste Connections In -3.66 Red Hat Inc 21.46 Freescale Semiconduc -3.60 90 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 12/13 Portfolio R Mid Cap G Total Number Of Securities 65 502 Equity Market Value 49,460,406 Average Capitalization $(000) 13,451,457 12,364,458 Median Capitalization $(000) 8,947,118 6,358,503 Equity Segment Yield 0.44 1.05 Equity Segment P/E -Average 41.29 28.01 Equity Segment P/E - Median 31.05 23.33 Equity Segment Beta 0.97 1.01 Price/Book Ratio 6.56 5.17 Debt/Equity Ratio 22.34 50.78 Five Year Earnings Growth 11.43 11.69 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Illumina Inc 1,027,881 2.08 36.86 Ipg Photonics Corp 764,614 1.55 37.83 Incyte Pharmaceutica 768,260 1.55 32.71 Athenahealth Inc 1,033,229 2.09 23.89 Chipotle Mexican Gri 902,529 1.82 24.28 Trimble Navigation L 1,223,626 2.47 16.80 Red Hat Inc 876,802 1.77 21.46 Cepheid Inc 929,728 1.88 19.67 Cigna Corp 1,320,948 2.67 13.82 Tractor Supply Co 1,086,120 2.20 15.70 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Regeneron Pharmaceut 2,201,920 4.45 -12.03 Linkedin Corp 1,279,297 2.59 -11.88 Chart Inds Inc 554,712 1.12 -22.27 Commvault Systems In 667,181 1.35 -14.74 Ctrip Com Intl Ltd 531,430 1.07 -15.08 Concur Technologies 925,525 1.87 -6.62 Lululemon Athletica 119,772 0.24 -19.24 Waste Connections In 607,940 1.23 -3.66 Oceaneering Intl Inc 836,128 1.69 -2.63 Freescale Semiconduc 585,825 1.18 -3.60 91 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 5.77 6.35 2.85 0.60 0.13 0.05 0.18 Materials 0.00 5.81 8.44 0.00 �'�.�'�1 1. Industrials 17.20 14.60 4.55 11.39 1..1.3 0.08 1..1.0 Consumer Discretionary 20.88 24.85 5.17 9.35 0,87 0,04 0,92 Consumer Staples 0.00 8.05 8.29 0.00 0.00 0.00 Health Care 24.17 13.32 7.64 8.25 0,15 0,1. Financials 4.90 8.19 14.93 9.36 0.27 0,04 0.24 Information Technology 27.08 16.66 4.10 6.53 0,66 0,18 0, Telecom. Services 0.00 1.47 4.46 0.00 0.06 0.06 Utilities 0.00 0.71 8.75 0.00 0.00 0.00 100.00 100.00 5.71 8.26 2,45 0,10 , Index-R Mid Cap G Stock Selection Return Attribution [Portfolio Market Value Sector Percentage] * [ Portfolio Sector Return-Index Sector Return] Sector Selection Return Attribution [Portfolio Sector Percentage-Index Sector Percentage] * [Index Sector Return-Index Total Return] Trading Effect 0.79% [Actual Return 6.51%] - [Buy Hold Return 5.71%] 92 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 12/13 %Allocation %Return %Variance Energy 5.77 2.85 6.35 0.60 1 0.18 Materials 0 5.81 8.44 -0.01 Industrials 14.60 17.20 11.39 -1.10 ME"Con.Discretionary 24.85 9.35 -0.92 EM Consumer Staples 8.05 8.29 -0.00 Health Care 24.17 7.64 -0.15 13.32 8.25 Financials 90 JIMSEIRM 14.93 0.24 8.19 1 9.36 27.08 10 -0.84 Infomation Tech. 16.66 6.53 ME Telecom. Services 0.00 0.06 1.47 4.46 0.00 -0.00 Utilities 0.71 1 8.75 ® Artisan Partners ❑ R Mid Cap G 93 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 12/31/13 Portfolio Performance 40.0 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 EM 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 8.63 34.92 34.92 18.31 23.11 8.91 R Mid Cap V 8.55 33.45 33.45 15.96 21.16 6.40 Asset Growth(5000) Beginning Market Value 49,289 44,831 44,831 40,943 19,238 30,365 Net Contributions&Withdrawals 0 -6,002 -6,002 -10,006 -10,006 -10,006 Gain/Loss+Income 4,255 14,716 14,716 22,606 44,311 33,184 Ending Market Value 53,544 53,544 53,544 53,544 53,544 53,544 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Transdigm Group Inc Industrials 4.30 Energy 6.58 Brunswick Corp Consumer Discretionary 4.15 Materials 7.89 Lincoln Natl Corp In Financials 4.14 Industrials 21.85 Allstate Corp Financials 4.11 Consumer Discretionary 16.56 Computer Sciences Co Information Technology 3.99 Consumer Staples 0.90 Huntington Ingalls I Industrials 3.43 Health Care 4.49 Wyndham Worldwide Co Consumer Discretionary 3.34 Financials 27.42 Ashland Inc New Materials 3.25 Information Technology 6.04 Duke Realty Corp. Financials 3.12 Telecom Services 0.00 Darden Restaurants I Consumer Discretionary 3.11 Utilities 8.27 94 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 12/31/13 Asset Allocation($000) Cash&Equiv $1,421 2.65% Domestic Equity $52,122 97.35% Risk/Return Analysis Periods from 2/07 to 12/13 Alpha 0.61 Beta 0.99 R-Squared 0.97 10.0 9.0 8.0 7.0 a 6.0 cC 7� 5.0 N 4.0 3.0 Q 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 8.91 20.62 0.38 0.57 1 R Mid Cap V 6.40 20.70 0.26 T" 91-Day Treasury Bill 0.99 0.51 0.00 95 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 50% 45% 40% 35% ------ 1 30% ------ 25 20% 15% 1 ------ 10% ----- 5% -------- 0 -5% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Qtr Year Years Years Years Years Years High 10.41 44.14 38.02 21.04 26.05 30.30 14.54 1st Qt 8.54 35.77 28.75 18.49 19.54 22.62 10.71 Median 8.18 34.92 26.01 17.73 18.19 21.03 9.59 3rd Qt 4.94 30.79 23.34 14.75 16.60 20.25 8.38 Low -0.25 2.76 13.16 8.66 11.37 16.54 7.32 w Wedge Capital Mgmt Net Ret 8.63 34.92 28.91 18.31 19.54 23.11 10.71 Rank 19 50 21 31 26 19 26 1 R Mid Cap V Net Ret 8.55 33.45 25.75 15.96 18.10 21.16 8.23 Rank 22 59 50 65 52 48 78 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% _______ 20% --- -- ---- 10% ------- 0% -10% ------- -20% -30% -40% -50% 2013 2012 2011 2010 2009 2008 High 44.14 32.17 7.76 43.18 61.50 -28.88 1st Qt 35.77 20.13 5.86 26.22 38.51 -33.12 Median 34.92 17.42 -0.55 23.27 33.14 -35.25 3rd Qt 30.79 14.81 -5.12 19.78 30.29 -36.61 Low 2.76 8.89 -7.49 17.95 24.49 -41.25 w Wedge Capital Mgmt Net Ret 34.92 23.16 -0.33 23.30 38.51 -34.89 Rank 50 8 46 46 25 45 1 R Mid Cap V Net Ret 33.45 18.48 -1.38 24.76 34.20 -38.45 Rank 59 30 56 40 46 84 97 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Mideap Value Portfolios 28% 26% 24% 22% 20% 1 18% 16% 1 1 14% 1 12% 10% 8% Mar I I Dee 10 Sep 10 Jun 10 Mar 10 Dee 13 Sep 13 Jul, 13 Mar 13 Dee 12 High 21.04 24.55 26.48 18.98 18.32 I st Qt 1 9.81 2060. 2071. 16.I I 1 4.71 Median 18.02 17.57 18.30 14.17 12.36 3rd Qt 14.96 14.94 17.66 13.19 1 1.55 Low 13.45 11.91 14.03 10.62 9.20 w Wedge Capital Mg-t Net Ret 1 8.31 1 9.98 20.71 1 8.65 14.81 Rank 36 28 25 12 21 1 R Mid Cap V Net Ret 1 5.96 17.26 1 9.52 14.95 13.39 Rank 70 50 32 40 43 Wedge Capital Mgmt Value Added Analysis - Net of Fee 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 5.0 4.0% 3.0% 2.0% 2.1 .O 2.0 1.5 1.0% 0.5 IMM O.1 0.0% Alm O. -0.2 1.0 ME 2.0% 1.4 -3.0% 3.1 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.R Mid Cap V ® Cumulative Value Added - 2 Yr Rolling Avg(AillllAaliZed) 98 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 4 3 6 5 11 10 Positive Periods 3 4 8 9 14 15 16 17 Up Market Capture 1.04 1.09 1.03 1.05 Down Market Capture 0.97 0.93 0.92 Batting Average 0.75 0.75 0.65 0.70 Worst Quarter 0,05 1.66 19,63 1 8,47 19,63 18,47 26,4 0 27.1 Best Quarter 16.49 14.21 16.49 14.21 25.65 23.62 25.65 23.62 Worst 4 Quarters 34.92 33.45 0,33 1,38 0,63 2,36 39,75 42.51 Best 4 Quarters 34.92 33.45 34.92 33.45 73.15 72.41 73.15 72.41 Standard Deviation 13.62 10.51 19.24 17.79 22.07 21.52 23.70 23.52 Beta 1.19 1.08 1.00 0.99 Alpha 1.,09 0.27 0.42 0.61 R-Squared 0.98 0.99 0.96 0.97 Sharpe Ratio 2.56 3.18 0.95 0.89 1.04 0.98 0.33 0.23 Treynor Ratio 29.26 16.93 22.90 7.94 Tracking Error 3.31 2.50 4.58 4.09 Information Ratio 0.42 0.93 0.37 0.57 -j 99 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Value Portfolios 3 Years Ending 12/31/13 26.0 ro 24.0 c 22.0 . 20.0 w • 0 18.0 W Median 7 • Return N 16.0 1 Q 14.0 • 12.0 • • 10.0 12.0 13.8 15.6 17.4 19.2 21.0 22.8 24.6 26.4 28.2 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Wedge Capital Mgmt 18.31 31 19.24 35 1 R Mid Cap V 15.96 65 17.79 25 Median 17.73 20.69 5 Years Ending 12/31/13 26.0 ro 25.0 24.0 23.0 cC 0 22.0 21.0 Median b . •� Return N 20.0 • 19.0 Q 18.0 17.0 16.0 • 12.0 13.8 15.6 17.4 19.2 21.0 22.8 24.6 26.4 28.2 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Wedge Capital Mgmt 23.11 19 22.07 75 1 R Mid Cap V 21.16 48 21.52 70 Median 21.03 20.79 100 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 12/13 Portfolio R Mid Cap V Total Number Of Securities 44 534 Equity Market Value 52,122,468 Average Capitalization $(000) 8,214,373 10,591,172 Median Capitalization $(000) 4,815,192 5,232,740 Equity Segment Yield 2.06 2.02 Equity Segment P/E -Average 18.91 20.66 Equity Segment P/E - Median 20.05 18.99 Equity Segment Beta 1.28 1.16 Price/Book Ratio 1.81 1.71 Debt/Equity Ratio 65.26 60.66 Five Year Earnings Growth 2.42 3.31 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Transdigm Group Inc 2,234,153 4.30 16.09 Brunswick Corp 2,158,832 4.15 15.67 Lincoln Natl Corp In 2,155,651 4.14 23.29 Allstate Corp 2,137,968 4.11 8.39 Computer Sciences Co 2,075,439 3.99 8.39 Huntington Ingalls I 1,782,198 3.43 33.87 Wyndham Worldwide Co 1,739,084 3.34 21.36 Ashland Inc New 1,688,496 3.25 5.32 Duke Realty Corp. 1,622,079 3.12 -1.53 Darden Restaurants I 1,620,226 3.11 18.85 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Huntington Ingalls I 33.87 Dana Holding Corp -13.87 Lincoln Natl Corp In 23.29 Energen Corp -7.20 Wyndham Worldwide Co 21.36 Cbl &Assoc Pptys In -4.68 Northrop Corp 20.96 Steelcase Inc -3.98 City Natl Corp 19.25 Pinnacle West Cap Co -2.35 Darden Restaurants I 18.85 Duke Realty Corp. -1.53 Transdigm Group Inc 16.09 URS Corp New -1.01 Brunswick Corp 15.67 Pg&E Corp -0.45 TCF Bkg & Svgs Fa Mi 14.16 Republic Svcs Inc 0.30 Carlisle Corp 13.30 Mfa Mtg Invts Inc 0.44 101 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 12/13 Portfolio R Mid Cap V Total Number Of Securities 44 534 Equity Market Value 52,122,468 Average Capitalization $(000) 8,214,373 10,591,172 Median Capitalization $(000) 4,815,192 5,232,740 Equity Segment Yield 2.06 2.02 Equity Segment P/E -Average 18.91 20.66 Equity Segment P/E - Median 20.05 18.99 Equity Segment Beta 1.28 1.16 Price/Book Ratio 1.81 1.71 Debt/Equity Ratio 65.26 60.66 Five Year Earnings Growth 2.42 3.31 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Huntington Ingalls I 1,782,198 3.43 33.87 Lincoln Natl Corp In 2,155,651 4.14 23.29 Wyndham Worldwide Co 1,739,084 3.34 21.36 Transdigm Group Inc 2,234,153 4.30 16.09 Brunswick Corp 2,158,832 4.15 15.67 Darden Restaurants I 1,620,226 3.11 18.85 City Natl Corp 1,229,494 2.36 19.25 Carlisle Corp 1,405,380 2.70 13.30 Allstate Corp 2,137,968 4.11 8.39 Computer Sciences Co 2,075,439 3.99 8.39 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Dana Holding Corp 449,298 0.86 -13.87 Steelcase Inc 1,267,214 2.44 -3.98 Cbl &Assoc Pptys In 1,059,640 2.04 -4.68 Pinnacle West Cap Co 1,407,672 2.71 -2.35 Energen Corp 438,650 0.84 -7.20 Duke Realty Corp. 1,622,079 3.12 -1.53 URS Corp New 1,504,916 2.89 -1.01 Pg&E Corp 1,421,884 2.73 -0.45 Republic Svcs Inc 481,400 0.93 0.30 Mfa Mtg Invts Inc 497,024 0.96 0.44 102 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 7.47 7.27 4.34 5.99 0,1.2 0.00 0,1. Materials 6.16 5.34 6.90 9.47 0,1.6 0.01 0,1. Industrials 22.44 11.23 10.69 12.55 0,42 0.46 0.04 Consumer Discretionary 16.38 8.89 12.69 11.33 0.22 0.21 0.44 Consumer Staples 0.89 2.85 9.35 7.92 0.01 0.01 0.02 Health Care 4.13 8.34 9.81 11.94 0,09 0,15 Financials 27.66 32.49 8.02 7.11 0.25 0.07 0.32 Information Technology 5.99 10.58 9.78 11.56 ().1.1. 0,1.4. 0,2 Telecom. Services 0.00 0.62 14.00 0.00 0,03 0,03 Utilities 8.89 12.38 1.93 2.28 0,03 0.22 0.19 100.00 100.00 8.69 8.48 0,44 0.64 0.20 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 0.16% [Actual Return 8.85%] - [Buy Hold Return 8.69%] 103 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 12/13 %Allocation %Return %Variance Energy 7.47 .34 M97.27 5.99 -0.13 Materials 6.16 0 5.34 9.47 -0.15 Industrials 11.2322.44 0��955 0.04 Con.Discretionary 8 89 6.38 11.33 69 0.44 Consumer Staples 0.89 9.35 0.02 2.85 7.92 Health Care .13 81 -0.23 8.34 11.94 Financials 7.66 8.02 0.32 32.49 7.11 Infomation Tech. 99 .78 -0.25 10.58 11.56 Telecom. Services 0.00 -0.03 0.62 14.00 89 1.93 0.19 Utilities 12.38 52.28 ® Wedge Capital Mgmt ❑ R Mid Cap V 104 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 12/31/13 Portfolio Performance 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 001 1 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 EM 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 9.22 42.51 42.51 19.60 24.17 10.54 11.12 R2000 8.72 38.82 38.82 15.67 20.08 9.07 10.01 Asset Growth(5000) Beginning Market Value 63,999 49,049 49,049 42,571 47,086 32,732 29,988 Net Contributions&Withdrawals -1 -3 -3 -2,008 -41,010 -41,010 -41,010 Gain/Loss+Income 5,900 20,851 20,851 29,335 63,822 78,176 80,920 Ending Market Value 69,898 69,898 69,898 69,898 69,898 69,898 69,898 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Cepheid Inc Health Care 2.01 Energy 2.93 Ultimate Software Gr Information Technology 2.00 Materials 2.57 National Instrs Corp Information Technology 1.97 Industrials 19.36 Grand Canyon Ed Inc Consumer Discretionary 1.89 Consumer Discretionary 13.90 Costar Group Inc Information Technology 1.70 Consumer Staples 4.67 Maximus Inc Information Technology 1.66 Health Care 14.62 Portfolio Recovery A Financials 1.63 Financials 14.75 United Nat Foods Inc Consumer Staples 1.54 Information Technology 26.12 Rollins Inc Industrials 1.52 Telecom Services 0.12 Athenahealth Inc Health Care 1.52 Utilities 0.96 Holdings and allocations only include SMA accounts. 105 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 12/31/13 Asset Allocation($000) Cash&Equiv $2,066 2.96% Domestic Equity $67,832 97.04% Risk/Return Analysis Periods from 8/03 to 12/13 Alpha 0.45 Beta 0.91 R-Squared 0.96 12.0 11.0 10.0 9.0 2 8.0 7.0 N 6.0 5.0 4.0 Q 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 11.12 18.67 0.51 0.19 1 R2000 10.01 19.55 0.43 T" 91-Day Treasury Bill 1.65 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 12/13 50% 45% 40% 35% 30% -- 25% 00 S 20% --- �__ 15% lo oo 10% --- --- --- 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 11.89 46.68 32.33 21.17 23.69 27.33 12.65 11.86 12.74 11.86 13.63 1st Qt 10.63 42.38 30.50 17.84 20.66 23.41 11.34 9.62 10.72 10.75 11.48 Median 9.29 39.13 27.54 16.61 18.89 21.67 9.94 8.76 9.86 9.72 10.80 3rd Qt 8.54 35.19 25.21 14.82 17.83 20.10 8.88 7.51 9.13 9.14 10.16 Low 5.98 27.87 21.29 11.26 15.08 17.75 7.74 6.28 7.37 8.02 9.04 S Small Cap Equity Comp Net Ret 9.22 42.51 29.46 19.60 21.95 24.17 10.41 9.36 10.34 9.99 10.54 Rank 52 23 36 12 10 18 40 29 32 39 61 1 82000 Net Ret 8.72 38.82 27.09 15.67 18.37 20.08 8.74 7.21 8.54 8.09 9.07 Rank 67 52 56 67 64 75 80 82 82 94 94 107 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% - --- 30% _ 20% ---- 10% -- ---- 0% S --- '-1---- -10% -- ---- -20% -30% _ -40% --- -50% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 46.68 23.01 6.42 33.78 62.14 -22.32 11.23 24.68 14.61 27.43 1st Qt 42.38 19.50 -0.45 29.97 36.57 -30.16 5.97 20.65 10.27 23.80 Median 39.13 16.73 -2.61 27.13 30.30 -33.33 0.33 18.17 7.95 20.87 3rd Qt 35.19 14.59 -5.09 24.61 27.04 -37.07 -4.32 15.45 4.67 18.67 Low 27.87 10.75 -10.50 20.51 21.89 -41.40 -10.18 10.44 2.34 11.21 S Small Cap Equity Comp Net Ret 42.51 17.61 2.07 29.27 33.51 -38.63 3.27 17.40 7.21 15.69 Rank 23 39 13 30 41 84 30 56 60 87 1 82000 Net Ret 38.82 16.34 -4.17 26.85 27.19 -33.80 -1.55 18.35 4.56 18.32 Rank 52 59 69 54 73 59 63 46 80 78 108 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 5 5 12 13 Positive Periods 4 4 9 9 15 15 29 28 Up Market Capture 1.10 1.04 1.00 0.98 Down Market Capture 0.77 0.75 0.89 Batting Average 0.75 0.75 0.75 0.63 Worst Quarter 4.78 3.09 1 8,74 21,86 1 8,74 71,86 25,65 26,12 Best Quarter 11.91 12.39 15.86 15.48 20.74 20.68 20.74 20.68 Worst 4 Quarters 42.51 38.82 2.07 4,17 2.07 4,17 38,63 37,50 Best 4 Quarters 42.51 38.82 42.51 38.82 57.55 62.77 57.55 62.77 Standard Deviation 6.45 7.95 18.24 20.11 19.48 22.34 19.15 20.55 Beta 0.97 0.91 0.86 0.91 Alpha 0.94 1.16 1.44 0.45 R-Squared 0.98 0.99 0.98 0.96 Sharpe Ratio 6.58 4.88 1.07 0.77 1.23 0.89 0.52 0.42 Treynor Ratio 43.67 21.49 27.81 10.86 Tracking Error 1.84 2.54 4.31 4.34 Information Ratio 1.52 1.22 0.66 0.19 -j 109 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 12/31/13 23.9 ro 22.5 21.1 ' 19.7 • • 0 18.3 . • 16.9 Median 15.5 •. • • • . • • Return 14.1 s•• • Q 12.7 11.4 • 10.0 14.0 15.3 16.6 17.9 19.2 20.5 21.8 23.1 24.4 25.7 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 19.60 12 18.24 15 1 R2000 15.67 67 20.11 52 Median 16.61 20.10 5 Years Ending 12/31/13 28.9 ro 27.5 26.1 •. ' 24.7 • • cC • 0 23.3 . • •' .., 21.9 • • Median b : ' • • Return N 20.5 • • • • 19.1 • 17.8 •• _ 16.4 ' 15.0 15.0 16.5 18.0 19.5 21.0 22.5 24.0 25.5 27.0 28.5 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 24.17 18 19.48 9 1 R2000 20.08 75 22.34 49 Median 21.67 22.40 110 City of Clearwater Employees Pension Fund Riverbridge Partners as of 12/31/13 Portfolio Performance 45.0 40.0 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 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 7.77 43.50 43.50 20.81 24.75 R2000G 8.18 43.29 43.29 16.81 21.17 Asset Growth(5000) Beginning Market Value 32,128 24,129 24,129 19,642 16,876 Net Contributions&Withdrawals 0 -1 -1 -3 -3 Gain/Loss+Income 2,496 10,496 10,496 14,986 17,751 Ending Market Value 34,624 34,624 34,624 34,624 34,624 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Cepheid Inc Health Care 4.04 Energy 0.00 Ultimate Software Gr Information Technology 4.03 Materials 0.00 Grand Canyon Ed Inc Consumer Discretionary 3.81 Industrials 18.81 Costar Group Inc Information Technology 3.41 Consumer Discretionary 11.99 Maximus Inc Information Technology 3.35 Consumer Staples 4.10 Portfolio Recovery A Financials 3.27 Health Care 21.67 National Instrs Corp Information Technology 3.14 Financials 6.03 United Nat Foods Inc Consumer Staples 3.09 Information Technology 37.39 Rollins Inc Industrials 3.07 Telecom Services 0.00 Athenahealth Inc Health Care 3.06 Utilities 0.00 111 City of Clearwater Employees Pension Fund Riverbridge Partners as of 12/31/13 Asset Allocation($000) Cash&Equiv $937 2.71% Domestic Equity $33,687 97.29% Risk/Return Analysis Periods from 9/10 to 12/13 Alpha 1.77 Beta 0.77 R-Squared 0.96 26.0 24.0 22.0 20.0 18.0 16.0 14.0 7� 12.0 N 10.0 8.0 6.0 Q 4.0 2.0 0.0 -2.0 -2.0 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 R Riverbridge Partners 24.75 13.96 1.77 0.34 1 R2000G 21.17 17.29 1.22 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 12/13 60% 55% 50% 45% ------ -------- 40% 30% ------ ----- 25% ------ 20% -------- V A------ 15% ------ 10 5% ------ 0 Last Last 2 Last 3 12/13 Last Last 2 Last 3 Qtr Qtrs Qtrs YTD Year Years Years High 11.54 27.52 33.53 54.25 54.25 34.43 22.95 1st Qt 9.82 23.88 30.92 46.67 46.67 30.73 20.13 Median 8.50 21.62 27.10 42.88 42.88 28.69 17.50 3rd Qt 6.31 19.07 22.34 37.73 37.73 25.88 15.77 Low 4.35 14.62 15.03 29.42 29.42 20.06 11.10 R Riverbridge Partners Net Ret 7.77 21.89 27.85 43.50 43.50 30.04 20.81 Rank 61 47 43 48 48 34 18 1 R2000G Net Ret 8.18 22.03 26.58 43.29 43.29 28.14 16.81 Rank 53 46 52 49 49 54 58 113 City of Clearwater Employees Pension Fund Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 55% 50% 45% -------------- R 1 40 35% ----------- 30% ----------- 25% ----------- 20% 15% R---------- 10% ----------- 5% R ----------- 0% -5% --- ------- -10 2013 2012 2011 2010 High 54.25 22.18 7.69 40.06 1st Qt 46.67 18.31 3.06 33.23 Median 42.88 15.37 -0.65 29.27 3rd Qt 37.73 13.11 -3.49 27.06 Low 29.42 6.53 -8.91 18.19 R Riverbridge Partners Net Ret 43.50 17.83 4.27 Rank 48 31 21 1 R2000G Net Ret 43.29 14.59 -2.92 Rank 49 63 71 114 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Small Growth Portfolios 28% 26% 24% R __________ __________ 22 20% R 1 18% 16% 1 14% 12% 10% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 Dee 13 Sep 13 Jun 13 Mar 13 Dee 12 High 22.52 25.80 25.75 19.63 18.62 1 st Qt 19.92 23.21 23.16 17.97 16.79 Median 17.57 20.72 21.15 15.45 14.38 3rd Qt 16.05 19.26 19.54 13.93 12.76 Low 13.69 17.26 17.00 11.94 10.82 R Riverbridge Partners Net Ret 20.81 23.94 Rank 14 18 1 R2000G Net Ret 16.81 19.94 Rank 59 60 Riverbridge Partners Value Added Analysis - Net of Fee 12.0% 10.0% 8.0% H 7.0 6.0% 4.0% 2.0% 1.1 0.8 0.3 0.0% 0.0 0.6 0.4 0.9 2.0% -1.4 3.3 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.R2000G ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 115 City of Clearwater Employees Pension Fund Risk Measure Summary Riverbridge Partners Quarterly Periods Ending 12/31/13 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 12 10 Up Market Capture 1.00 0.92 0.92 Down Market Capture 0.51 0.51 Batting Average 0.50 0.50 0.46 Worst Quarter 4.89 3.73 15,89 22,26 15,89 22,26 Best Quarter 13.10 13.20 13.13 14.99 16.39 17.11 Worst 4 Quarters 43.50 43.29 4.27 2,92 4.27 2,92 Best 4 Quarters 43.50 43.29 43.50 43.29 43.50 43.29 Standard Deviation 7.72 8.92 16.06 20.87 16.59 21.17 Beta 0.94 0.76 0.77 Alpha 0.56 1.73 1.77 R-Squared 0.98 0.95 0.96 Sharpe Ratio 5.63 4.85 1.29 0.80 1.49 1.00 Treynor Ratio 46.07 27.28 31.81 Tracking Error 1.84 6.16 5.94 Information Ratio 0.04 0.40 0.34 -j 116 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Growth Portfolios 3 Years Ending 12/31/13 26.0 24.0 • 22.0 • 20.0 • w t ti 0 18.0 • � Median • Return 16.0 ..�t• . . d 14.0 12.0 10.0 • 12.0 13.8 15.6 17.4 19.2 21.0 22.8 24.6 26.4 28.2 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Riverbridge Partners 20.81 18 16.06 4 1 R2000G 16.81 58 20.87 58 Median 17.50 20.70 117 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 12/13 Portfolio R2000G Total Number Of Securities 46 1,173 Equity Market Value 33,686,842 Average Capitalization $(000) 2,648,735 2,014,106 Median Capitalization $(000) 1,932,867 876,762 Equity Segment Yield 0.39 0.58 Equity Segment P/E -Average 41.03 63.40 Equity Segment P/E - Median 30.64 19.67 Equity Segment Beta 0.93 1.21 Price/Book Ratio 4.78 4.30 Debt/Equity Ratio 13.27 35.35 Five Year Earnings Growth 5.45 9.68 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Cepheid Inc 1,359,972 4.04 19.67 Ultimate Software Gr 1,359,061 4.03 3.95 Grand Canyon Ed Inc 1,283,322 3.81 8.24 Costar Group Inc 1,149,933 3.41 9.93 Maximus Inc 1,128,783 3.35 -2.24 Portfolio Recovery A 1,101,714 3.27 -11.85 National Instrs Corp 1,056,244 3.14 3.99 United Nat Foods Inc 1,041,890 3.09 12.15 Rollins Inc 1,033,858 3.07 15.01 Athenahealth Inc 1,030,405 3.06 23.89 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Ebix Com Inc 48.09 Tile Shop Hldgs Inc -38.72 Stratasys Ltd 33.02 K12 Inc -29.57 Gentex Corp 29.62 Innerworkings Inc -20.67 Sciquest Inc New 26.80 Semtech Corp -15.71 Cass Information Sys 26.61 Bio-Reference Labs I -14.52 Athenahealth Inc 23.89 Fresh Mkt Inc -14.39 Pegasystems Inc 23.61 Portfolio Recovery A -11.85 Digi Intl Inc 21.08 Proto Labs Inc -6.82 Mobile Mini 20.90 Abaxis Inc -4.94 Cepheid Inc 19.67 Roadrunner Trnsn Svc -4.57 118 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 12/13 Portfolio Russell 2000 Growth Total Number Of Securities 46 1,173 Equity Market Value 33,686,842 Average Capitalization $(000) 2,648,735 2,014,106 Median Capitalization $(000) 1,932,867 876,762 Equity Segment Yield 0.39 0.58 Equity Segment P/E -Average 41.03 63.40 Equity Segment P/E - Median 30.64 19.67 Equity Segment Beta 0.93 1.21 Price/Book Ratio 4.78 4.30 Debt/Equity Ratio 13.27 35.35 Five Year Earnings Growth 5.45 9.68 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Cepheid Inc 1,359,972 4.04 19.67 Stratasys Ltd 757,688 2.25 33.02 Athenahealth Inc 1,030,405 3.06 23.89 Gentex Corp 809,080 2.40 29.62 Mobile Mini 874,046 2.59 20.90 Financial Engines In 930,615 2.76 16.98 Cass Information Sys 591,602 1.76 26.61 Rollins Inc 1,033,858 3.07 15.01 Sciquest Inc New 567,663 1.69 26.80 Pegasystems Inc 629,406 1.87 23.61 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Tile Shop Hldgs Inc 467,200 1.39 -38.72 Portfolio Recovery A 1,101,714 3.27 -11.85 K12 Inc 415,208 1.23 -29.57 Semtech Corp 617,843 1.83 -15.71 Bio-Reference Labs I 484,392 1.44 -14.52 Innerworkings Inc 237,751 0.71 -20.67 Fresh Mkt Inc 340,565 1.01 -14.39 Proto Labs Inc 603,962 1.79 -6.82 Maximus Inc 1,128,783 3.35 -2.24 Abaxis Inc 481,281 1.43 -4.94 119 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 0.00 3.88 6.73 0.00 0.05 0.05 Materials 0.00 5.05 9.61 0.00 0,08 0,08 Industrials 16.33 15.25 8.11 10.45 0,38 0.03 0,36 Consumer Discretionary 12.62 16.74 4.91 8.57 0,46 0,02 0,48 Consumer Staples 4.25 5.08 4.19 5.93 0,07 0.02 0,06 Health Care 22.35 20.94 10.80 7.63 0.71 �'�.�'�1. 0.70 Financials 6.55 7.16 0,63 8.01 0,57 0.00 0,57 Information Technology 37.91 24.91 8.07 6.91 0.44 0,15 Telecom. Services 0.00 0.86 12.25 0.00 0,04 0,04 Utilities 0.00 0.12 7.80 0.00 0.00 0.00 100.00 100.00 7.55 8.08 0,33 0,20 0, 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 0.51% [Actual Return 8.06%] - [Buy Hold Return 7.55%] 120 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 12/13 %Allocation %Return %Variance Energy 00 13.88 6.73 0.05 Materials 00 5.05 9.61 -0.08 Industrials 1 15.25 10.45 -0.36 Con.Discretionary 2.6.74 Z862 57 -0.48 Consumer Staples 4.25 .19 -0.06 5.08 5.93 Health Care 22.35 10.80 IM 0.70 20.94 7.63 Financials 6.55 -0.63 1 -0.57 7.16 8.01 37.91 8.07 0.29 Infomation Tech. 24.91 6.91 Telecom. Services 0.00 -0.04 0.86 12.25 Utilities 0.00 0.00 0.12 7.80 ® Riverbridge Partners ❑ R2000G 121 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 12/31/13 Portfolio Performance 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 IL 0.0 -hL -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 10.72 42.43 42.43 20.88 23.06 13.68 13.84 Russell 2000 8.72 37.88 37.88 15.43 18.22 8.87 10.06 Asset Growth(5000) Beginning Market Value 15,719 12,220 12,220 11,514 14,689 15,878 14,990 Net Contributions&Withdrawals 0 -1 -1 -2,003 -12,003 -12,003 -12,003 Gain/Loss+Income 1,685 5,184 5,184 71893 14,718 13,528 14,417 Ending Market Value 17,404 17,404 17,404 17,404 17,404 17,404 17,404 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Manhattan Assocs Inc Information Technology 3.76 Energy 2.54 Kirby Expl Co. Industrials 3.43 Materials 4.32 Henry Jack&Assoc I Information Technology 3.38 Industrials 27.98 Morningstar Inc Consumer Discretionary 3.05 Consumer Discretionary 18.33 Sally Beauty Hldgs I Consumer Discretionary 2.83 Consumer Staples 3.80 Moog Inc'a' Industrials 2.56 Health Care 7.70 Dril-Quip Inc Energy 2.54 Financials 16.45 Dorman Products Inc Consumer Discretionary 2.31 Information Technology 18.88 Bio Rad Labs Inc Health Care 2.29 Telecom Services 0.00 Fair Isaac Corp Information Technology 2.28 Utilities 0.00 122 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 12/31/13 Asset Allocation($000) Cash&Equiv $752 4.32% Domestic Equity $16,652 95.68% Risk/Return Analysis Periods from 8/03 to 12/13 Alpha 1.39 Beta 0.74 R-Squared 0.92 15.0 14.0 13.0 12.0 11.0 10.0 9.0 8.0 N 7.0 6.0 5.0 Q 4.0 3.0 2.0 1.0 j j 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 t Atlanta Capital Mgmt 13.84 16.46 0.74 0.36 1 Russell 2000 10.06 19.51 0.43 T" 91-Day Treasury Bill 1.65 0.56 0.00 123 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 50% 45% 40% 1 35% 30% --- 25% oo 20% --- __lo 15% _ 10% -- --- --- 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 11.89 46.68 32.33 21.17 23.69 27.33 12.65 11.86 12.74 11.86 13.63 1st Qt 10.63 42.38 30.50 17.84 20.66 23.41 11.34 9.62 10.72 10.75 11.48 Median 9.29 39.13 27.54 16.61 18.89 21.67 9.94 8.76 9.86 9.72 10.80 3rd Qt 8.54 35.19 25.21 14.82 17.83 20.10 8.88 7.51 9.13 9.14 10.16 Low 5.98 27.87 21.29 11.26 15.08 17.75 7.74 6.28 7.37 8.02 9.04 t Atlanta Capital Mgmt Net Ret 10.72 42.43 26.60 20.88 22.13 23.06 14.65 13.51 13.85 12.97 13.68 Rank 23 23 60 6 8 31 2 2 2 2 1 1 Russell 2000 Net Ret 8.72 37.88 27.58 15.43 17.64 18.22 8.61 5.77 7.83 7.48 8.87 Rank 67 58 49 68 76 89 84 97 90 97 96 124 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% --- 30% 20% --- --- 10% ---- --- -10% ---- ---- -20% -30% -40% ---- -50% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 46.68 23.01 6.42 33.78 62.14 -22.32 11.23 24.68 14.61 27.43 1st Qt 42.38 19.50 -0.45 29.97 36.57 -30.16 5.97 20.65 10.27 23.80 Median 39.13 16.73 -2.61 27.13 30.30 -33.33 0.33 18.17 7.95 20.87 3rd Qt 35.19 14.59 -5.09 24.61 27.04 -37.07 -4.32 15.45 4.67 18.67 Low 27.87 10.75 -10.50 20.51 21.89 -41.40 -10.18 10.44 2.34 11.21 t Atlanta Capital Mgmt Net Ret 42.43 12.53 10.20 25.98 26.83 -19.52 6.91 16.22 6.23 20.24 Rank 23 89 1 66 77 1 19 65 62 58 1 Russell 2000 Net Ret 37.88 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 58 36 76 75 96 18 92 8 73 39 125 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Small Cap Neutral Portfolios 23% 22% 21% 20% 19% I8% 16% 15 14% 13% ___1______ 12% 1 I I 1 10% 9% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 Sep 13 Sep 13 Jun 13 Mar 13 Dee 12 High 18.06 22.46 22.42 17.55 15.92 I st Qt 1 5.53 1 9.98 20.47 1 5.29 14.04 Median 14.38 18.88 19.16 14.15 12.87 3rd Qt 13.39 17.85 17.87 12.96 12.03 Low 11.06 15.60 15.83 10.59 10.00 t Atlanta Capital Mgtnt Net Ret 1 8.51 22.31 22.59 17.70 1 6.03 Rank 2 5 4 4 4 1 Russell 2000 Net Ret 13.45 17.74 17.56 12.11 11.58 Rank 74 76 78 86 79 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 25.0% 20.0% 15.0% 10.9 10.0% 3 5.4 5.0% 3.2 b2.7 1.8 0.9 1.2 1. 0.0% 0.0 0.4 0.2 O.O 0.6 -0"1 -0.7 1.4 ?.6 2.6 -5.0% 6.0 -10.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.Russell 2000 ® Cumulative Value Added - 2 Yr Rolling Avg(AIllnAaliZed) 126 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 3 4 5 11 12 Positive Periods 4 4 10 9 16 15 30 29 Up Market Capture 1.12 1.03 0.95 0.90 Down Market Capture 0.63 0.65 0.60 Batting Average 1.00 0.67 0.65 0.61 Worst Quarter 4.30 3.09 1. ,76 21,47 1. ,76 21,47 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 42.43 37.88 3.29 5,50 3.29 6.00 24,55 38,89 Best 4 Quarters 42.43 37.88 42.43 37.88 52.53 65.05 52.53 65.05 Standard Deviation 6.79 7.48 16.86 19.75 18.33 23.26 15.83 20.75 Beta 1.02 0.84 0.77 0.74 Alpha 0.70 1.73 1.91 1.39 R-Squared 0.97 0.95 0.95 0.92 Sharpe Ratio 6.24 5.05 1.23 0.78 1.25 0.78 0.80 0.42 Treynor Ratio 41.47 24.83 29.77 17.25 Tracking Error 1.81 5.12 6.85 7.15 Information Ratio 1.94 0.82 0.43 0.36 -j 127 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 12/31/13 23.9 ro 22.5 21.1 t9 • 19.7 • • • 0 18.3 . • 16.9 Median 15.5 • •. • • • . • • Return 14.1 s•• • Q 12.7 11.4 10.0 14.0 15.3 16.6 17.9 19.2 20.5 21.8 23.1 24.4 25.7 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 20.88 6 16.86 7 1 Russell 2000 15.43 68 19.75 44 Median 16.61 20.10 5 Years Ending 12/31/13 28.9 ro 27.5 26.1 •. ' 24.7 • • cC � 0 23.3 . • .' .., 21.9 • Median b : ' • • Return N 20.5 • • • 19.1 • 17.8 •• t 16.4 ' 15.0 15.0 16.5 18.0 19.5 21.0 22.5 24.0 25.5 27.0 28.5 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 23.06 31 18.33 6 1 Russell 2000 18.22 89 23.26 64 Median 21.67 22.40 128 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 12/13 Portfolio Russell 2000 Total Number Of Securities 59 2,003 Equity Market Value 16,651,783 Average Capitalization $(000) 2,965,425 1,782,616 Median Capitalization $(000) 2,256,438 715,024 Equity Segment Yield 0.88 1.23 Equity Segment P/E -Average 28.18 47.82 Equity Segment P/E - Median 27.47 17.10 Equity Segment Beta 1.03 1.27 Price/Book Ratio 3.72 2.35 Debt/Equity Ratio 18.82 42.04 Five Year Earnings Growth 7.55 6.84 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Manhattan Assocs Inc 624,994 3.76 23.08 Kirby Expl Co. 570,390 3.43 14.67 Henry Jack &Assoc I 563,087 3.38 15.13 Morningstar Inc 507,507 3.05 -1.31 Sally Beauty Hldgs I 471,558 2.83 15.56 Moog Inc 'a' 425,984 2.56 15.80 Dril-Quip Inc 422,681 2.54 -4.20 Dorman Products Inc 384,752 2.31 13.16 Bio Rad Labs Inc 381,213 2.29 5.15 Fair Isaac Corp 379,177 2.28 13.71 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Columbia Sportswear 31.24 Actuant Corp -5.66 Cass Information Sys 26.61 Hittite Microwave Co -5.54 Raven Inds Inc 26.26 Dril-Quip Inc -4.20 Artisan Partners Ass 25.39 Caseys Gen Stores -4.19 Manhattan Assocs Inc 23.08 Blackbaud Inc -3.24 Scansource Inc 22.63 Universal Health Rlt -2.86 Iberiabank Corp 21.82 Morningstar Inc -1.31 Monro Muffler Brake 21.49 Harris Teeter Superm 0.63 Aaon Inc 20.69 Forest City Enterpri 0.84 Hibbett Sports Inc 19.70 Unifirst Corp Mass 2.51 129 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 12/13 Portfolio Russell 2000 Total Number Of Securities 59 2,003 Equity Market Value 16,651,783 Average Capitalization $(000) 2,965,425 1,782,616 Median Capitalization $(000) 2,256,438 715,024 Equity Segment Yield 0.88 1.23 Equity Segment P/E -Average 28.18 47.82 Equity Segment P/E - Median 27.47 17.10 Equity Segment Beta 1.03 1.27 Price/Book Ratio 3.72 2.35 Debt/Equity Ratio 18.82 42.04 Five Year Earnings Growth 7.55 6.84 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Manhattan Assocs Inc 624,994 3.76 23.08 Columbia Sportswear 277,436 1.67 31.24 Henry Jack &Assoc I 563,087 3.38 15.13 Kirby Expl Co. 570,390 3.43 14.67 Artisan Partners Ass 327,254 1.97 25.39 Raven Inds Inc 311,142 1.87 26.26 Monro Muffler Brake 347,347 2.09 21.49 Sally Beauty Hldgs I 471,558 2.83 15.56 Acuity Brands Inc 371,360 2.23 18.96 Moog Inc 'a' 425,984 2.56 15.80 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Dril-Quip Inc 422,681 2.54 -4.20 Blackbaud Inc 365,054 2.19 -3.24 Actuant Corp 190,528 1.15 -5.66 Caseys Gen Stores 210,750 1.27 -4.19 Hittite Microwave Co 135,374 0.81 -5.54 Morningstar Inc 507,507 3.05 -1.31 Universal Health Rlt 92,939 0.56 -2.86 Harris Teeter Superm 155,847 0.94 0.63 Forest City Enterpri 166,170 1.00 0.84 Unifirst Corp Mass 75,435 0.45 2.51 130 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 3.29 5.66 4,20 5.98 0,34 0.06 0,27 Materials 4.21 4.84 13.60 11.15 0.10 0,02 0.09 Industrials 28.34 14.41 11.78 10.99 0.22 0.33 0.55 Consumer Discretionary 17.18 13.89 12.98 8.96 0.69 0.01 0.70 Consumer Staples 3.77 3.96 1.99 5.91 0,15 0,1.4 Health Care 7.21 12.97 12.29 8.39 0.28 0.01 0.30 Financials 16.24 22.38 13.74 9.10 0.75 0,03 0.73 Information Technology 19.75 18.11 9.05 7.46 0.31 0,02 0.29 Telecom. Services 0.00 0.76 5.28 0.00 0.03 0.03 Utilities 0.00 3.02 6.36 0.00 0.07 0.07 100.00 100.00 10.98 8.65 1.88 0.45 2.33 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 0.22% [Actual Return 11.20%] - [Buy Hold Return 10.98%] 131 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 12/13 %Allocation %Return %Variance Energy 29 -4.20 !!1-5.66 5.98 -0.27 Materials 4.21 13.60 4.84 11.15 0.09 Industrials 14.41 28.34 10.99 17 0.55 Con.Discretionary 13 8918 612 98 0.70 Consumer Staples 3'77 -0.14 3.96 Heal th Care 1 97 12.29 0.30 12. 8.39 Financials 24 13.74 0.73 22.38 9.10 19.75 9.05 0.29 Infomation Tech. 18.11 7.46 Telecom. Services 0.00 0.03 0.76 5.28 Utilities 00 0.07 3.02 6.36 ® Atlanta Capital Mgmt ❑ Russell 2000 132 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 12/31/13 Portfolio Performance 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 IL -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 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 10.64 40.72 40.72 16.12 23.56 9.40 10.32 R2000V 9.29 34.50 34.50 14.48 17.63 8.61 9.79 Asset Growth(5000) Beginning Market Value 16,152 12,700 12,700 11,416 10,362 16,855 15,001 Net Contributions&Withdrawals 0 -1 -1 -2 -6,002 -6,002 -6,002 Gain/Loss+Income 1,719 5,171 5,171 61456 13,510 7,017 8,871 Ending Market Value 17,870 17,870 17,870 17,870 17,870 17,870 17,870 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Dupont Fabros Techno Financials 2.63 Energy 8.94 Bbcn Bancorp Inc Financials 2.05 Materials 5.88 Bankunited Inc Financials 1.96 Industrials 12.21 Cno Finl Group Inc Financials 1.94 Consumer Discretionary 13.35 Supervalu Inc Consumer Staples 1.88 Consumer Staples 6.58 Ruths Chris Steak Hs Consumer Discretionary 1.75 Health Care 7.61 Generac Hldgs Inc Industrials 1.70 Financials 29.93 Aar Corp Industrials 1.59 Information Technology 11.30 Graphic Packaging Hl Materials 1.56 Telecom Services 0.48 Hci Group Inc Financials 1.52 Utilities 3.73 133 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 12/31/13 Asset Allocation($000) Cash&Equiv $377 2.11% Domestic Equity $17,493 97.89% Risk/Return Analysis Periods from 8/03 to 12/13 Alpha 0.19 Beta 1.06 R-Squared 0.86 11.0 10.0 9.0 8.0 a 7.0 cC 7� 6.0 N 5.0 4.0 Q 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 Systematic Financial Mgt 10.32 21.29 0.41 0.11 1 R2000V 9.79 19.50 0.42 T" 91-Day Treasury Bill 1.65 0.56 0.00 134 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/13 50% 45% 40% --- 35% 1 30% 25% 1 20% --- 15% - 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 14.22 48.64 32.55 19.34 22.56 27.82 14.15 11.92 11.56 11.59 12.98 1st Qt 11.11 41.33 29.31 17.29 19.64 24.19 12.34 10.14 11.23 11.37 12.46 Median 9.78 36.54 27.36 16.56 19.12 21.84 10.61 9.28 10.55 10.43 11.74 3rd Qt 8.74 32.97 22.65 13.92 16.88 19.77 9.82 8.74 10.05 10.10 10.98 Low 4.05 12.40 4.28 2.14 14.90 16.70 6.36 6.51 8.31 9.72 10.71 s Systematic Financial Mgt Net Ret 10.64 40.72 31.83 16.12 20.69 23.56 9.32 8.02 9.29 9.17 9.40 Rank 36 27 10 53 18 25 88 88 92 99 100 1 R2000V Net Ret 9.29 34.50 26.01 14.48 16.91 17.63 8.16 5.39 7.50 7.19 8.61 Rank 56 62 50 67 73 89 92 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% _8---- 30% -- 20% ---- ---- 10% ---- -10% ---- 1 -20% -30% ---- -40% -50% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 48.64 23.48 2.62 33.79 53.30 -23.82 9.59 23.29 13.78 28.23 1st Qt 41.33 18.39 1.43 28.77 36.69 -26.01 2.19 20.94 10.94 24.36 Median 36.54 16.68 -1.73 26.05 33.41 -29.30 -1.88 19.13 8.98 21.39 3rd Qt 32.97 11.73 -4.67 24.87 26.61 -32.93 -4.31 15.90 7.48 18.37 Low 12.40 -3.32 -8.96 21.15 21.32 -38.96 -11.93 10.87 4.21 12.52 s Systematic Financial Mgt Net Ret 40.72 23.50 -9.91 35.50 35.72 -40.71 0.49 18.61 8.27 11.42 Rank 27 4 96 2 41 96 37 55 60 100 1 R2000V Net Ret 34.50 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 62 31 78 82 95 48 92 1 88 33 136 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Small Value Portfolios 22% 21% s 20% 19% 18% 17% 1 1 16% s 15% 14% 1 s 13% 12% 1 1 I I 10% Mar 11 Dec 10 Sep 10 Jun 10 Mar 10 __2,, 13 Sep 13 Jun 13 Mar 13 Dcc 12 High 19.83 20.58 21.51 16.60 15.68 1 st Qt 17.53 19.40 19.90 15.81 14.62 Median 16.82 18.81 18.99 13.86 13.25 3rd Qt 15.22 17.48 18.09 13.29 12.55 Low 10.99 15.47 1627 11.55 10.60 s Systematic Financial Mgt Net Ret 16.12 18.88 20.75 14.15 14.67 Rank 60 46 10 45 22 1 R2000V Net Ret 14.48 16.56 17.33 12.11 11.58 Rank 76 88 84 89 88 Systematic Financial Mgt Value Added Analysis - Net of Fee 30.0% 25.0% 20.0% 15.0% 10.0% 5.7 5.0% MMM 2.6 43.9 20.4 0.6 1.0 1.4 11 1.2 0.0% 0.0 0.3 -2.3 -2.4 -5.0% 7.4 -10.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.R2000V ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 137 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 5 5 14 12 Positive Periods 4 4 9 9 15 15 27 29 Up Market Capture 1.18 1.29 1.25 1.04 Down Market Capture 1.34 1.05 1.00 Batting Average 0.75 0.67 0.75 0.59 Worst Quarter 5.03 2.47 27.21) 21,47 27,29 71.47 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 40.72 34.50 ().()1 5,50 11,58 6,00 40,88 38,89 Best 4 Quarters 40.72 34.50 44.73 34.50 74.73 65.05 74.73 65.05 Standard Deviation 5.65 7.78 25.37 19.59 26.09 23.20 23.54 20.69 Beta 0.97 1.28 1.10 1.06 Alpha 1.45 0,40 0.99 0.19 R-Squared 0.95 0.98 0.95 0.86 Sharpe Ratio 7.19 4.43 0.63 0.73 0.90 0.75 0.39 0.40 Treynor Ratio 42.04 12.50 21.32 8.63 Tracking Error 2.34 6.54 6.15 8.88 Information Ratio 2.08 0.40 0.94 0.11 -j 138 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 12/31/13 25.9 ro 24.1 22.3 • 20.5 • 0 18.8 � • 17.0 ••.• Median ' ' • S Return °N 15.2 « «� • 13.4 = ' Q 11.6 9.8 •• 8.0 • • 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 s Systematic Financial Mgt 16.12 53 25.37 100 1 R2000V 14.48 67 19.59 47 Median 16.56 20.01 5 Years Ending 12/31/13 32.0 ro 30.0 28.0 c 26.0 cC • 0 24.0 • 22.0 Median • Return °N 20.0 • • 18.0 • 1 Q 16.0 • •' ' 14.0 12.0 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 s Systematic Financial Mgt 23.56 25 26.09 86 1 R2000V 17.63 89 23.20 69 Median 21.84 22.85 139 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 12/13 Portfolio R2000V Total Number Of Securities 122 1,393 Equity Market Value 17,493,097 Average Capitalization $(000) 1,655,664 1,537,332 Median Capitalization $(000) 1,133,937 617,903 Equity Segment Yield 1.21 1.93 Equity Segment P/E -Average -1,485.84 37.77 Equity Segment P/E - Median 12.81 16.06 Equity Segment Beta 1.46 1.33 Price/Book Ratio 1.99 1.59 Debt/Equity Ratio 51.12 48.96 Five Year Earnings Growth 6.32 3.91 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Dupont Fabros Techno 459,606 2.63 -2.16 Bbcn Bancorp Inc 358,759 2.05 21.17 Bankunited Inc 343,191 1.96 5.55 Cno Finl Group Inc 339,206 1.94 23.07 Supervalu Inc 329,326 1.88 -11.42 Ruths Chris Steak Hs 305,870 1.75 20.17 Generac Hldgs Inc 297,360 1.70 32.83 Aar Corp 277,299 1.59 2.76 Graphic Packaging Hl 273,360 1.56 12.15 Hci Group Inc 266,163 1.52 31.80 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Horizon Pharma Inc 125.44 Alliance Fiber Optic -25.76 Universal Ins Hldgs 109.19 Orbitz Worldwide Inc -25.44 Zeltiq Aesthetics In 108.49 Harmony Gold Mng Ltd -25.15 Gray Television Inc 89.55 Hhgregg Inc -22.00 Delek US Hldgs Inc 64.80 Medassets Inc -21.99 Sunedison Inc 63.74 Biotelemetry Inc -19.88 Pharmerica Corp 62.02 Triangle Pete Corp -15.28 Anika Resh Inc 59.27 Formfactor Inc -12.24 Safe Bulkers Inc 54.17 Supervalu Inc -11.42 Shoretel Inc 53.64 Hercules Offshore In -11.40 140 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 12/13 Portfolio R2000V Total Number Of Securities 122 1,393 Equity Market Value 17,493,097 Average Capitalization $(000) 1,655,664 1,537,332 Median Capitalization $(000) 1,133,937 617,903 Equity Segment Yield 1.21 1.93 Equity Segment P/E -Average -1,485.84 37.77 Equity Segment P/E - Median 12.81 16.06 Equity Segment Beta 1.46 1.33 Price/Book Ratio 1.99 1.59 Debt/Equity Ratio 51.12 48.96 Five Year Earnings Growth 6.32 3.91 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Zeltiq Aesthetics In 137,570 0.79 108.49 Gray Television Inc 137,640 0.79 89.55 Sunedison Inc 180,743 1.03 63.74 Horizon Pharma Inc 85,344 0.49 125.44 Generac Hldgs Inc 297,360 1.70 32.83 Delek US Hldgs Inc 137,640 0.79 64.80 Hci Group Inc 266,163 1.52 31.80 Universal Ins Hldgs 71,676 0.41 109.19 Cno Finl Group Inc 339,206 1.94 23.07 Bbcn Bancorp Inc 358,759 2.05 21.17 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Hhgregg Inc 213,923 1.22 -22.00 Supervalu Inc 329,326 1.88 -11.42 Biotelemetry Inc 184,605 1.06 -19.88 Orbitz Worldwide Inc 114,701 0.66 -25.44 Medassets Inc 118,484 0.68 -21.99 Alliance Fiber Optic 89,924 0.51 -25.76 Centene Corp Del 234,326 1.34 -7.83 Triangle Pete Corp 103,168 0.59 -15.28 Harmony Gold Mng Ltd 52,814 0.30 -25.15 Hercules Offshore In 111,826 0.64 -11.40 141 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 9.53 7.54 7.57 5.57 0.19 0,07 0.12 Materials 5.08 4.62 8.41 12.99 0,23 0.02 0,22 Industrials 11.78 13.53 18.97 11.65 0.86 0,04 0.82 Consumer Discretionary 12.75 10.87 10.76 9.62 0.15 0.01 0.15 Consumer Staples 5.95 2.77 4.32 5.86 0,09 ().1.1. 0,20 Health Care 8.83 4.54 8.33 12.23 0,34 0.13 0,22 Financials 29.32 38.47 12.19 9.32 0.84 1. 0.84 Information Technology 13.15 10.93 15.24 8.79 0.85 �'�.�'�1. 0.84 Telecom. Services 0.96 0.65 20,27 4,40 0,15 ().I O Utilities 2.64 6.08 0.51 6.33 0,15 0,05 100.00 100.00 11.15 9.26 1.92 0,03 1.89 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 -0.24% [Actual Return 10.91%] - [Buy Hold Return 11.15%] 142 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 12/13 %Allocation %Return %Variance Energy 9.53 7.57 "7.54 !15.57 1 0.12 Materials 5.08 .41 -0.22 4.62 12.99 Industrials 11.78 11.65 97 0.82 Con.Discretionary 10.875 9 62 6 0.15 Consumer Staples 5.95 4.32 -0.20 2.77 5.86 Health Care 8.83 .33 -0.22 !F4.54 MLi12.23 Financials 2 12.19 IM 0.84 38.47 9.32 Infomation Tech. 13.15 15.24 0.84 !"10.93 8.79 Telecom. Services 0.96 -20.27 -0.19 0.65 64 51 -0.05 Utilities 6.08 6.33 ® Systematic Financial Mgt ❑ R2000V 143 144 City of Clearwater Employees Pension Fund International EQ Comp as of 12/31/13 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 5/31/01 EM 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 5.10 10.23 10.23 3.27 15.54 7.29 6.00 MSCI EAFE 5.75 23.29 23.29 8.66 12.96 7.39 6.14 Asset Growth(5000) Beginning Market Value 114,100 108,811 108,811 120,850 51,823 41,439 20,000 Net Contributions&Withdrawals -4 -24 -24 -9,577 -9,740 -9,740 -9,740 Gain/Loss+Income 5,817 11,127 11,127 8,641 77,830 1 88,215 109,654 Ending Market Value 119,913 119,913 119,913 119,913 119,913 119,913 119,913 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Core Laboratories N Energy 4.57 Energy 22.38 Rio Tinto Plc Materials 3.27 Materials 18.58 Bhp Billiton Ltd Materials 3.23 Industrials 12.85 Canadian Pac Railway Industrials 3.13 Consumer Discretionary 4.20 Arm Hldgs Plc Information Technology 2.75 Consumer Staples 9.38 Novartis A G Health Care 2.58 Health Care 10.04 Agrium Inc Materials 2.12 Financials 14.50 Shire Health Care 2.12 Information Technology 7.28 Schlumberger Ltd Energy 2.04 Telecom Services 0.79 Canadian Natl Ry Co Industrials 2.00 Utilities 0.00 Holdings and allocations only include SMA accounts. 145 City of Clearwater Employees Pension Fund International EQ Comp as of 12/31/13 Asset Allocation($000) Cash&Equiv $2,715 2.26% Intl Equity $117,199 97.74% Risk/Return Analysis Periods from 5101 to 12/13 Alpha -0.03 Beta 1.03 R-Squared 0.95 6.5 6.0 5.5 5.0 a 4.5 cC 7� 4.0 N 3.5 3.0 Q 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 6.00 18.48 0.23 -0.01 1 MSCI EAFE 6.14 18.03 0.24 T" 91-Day Treasury Bill 1.73 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 12/13 40% 35% 30% 25% --- 1 --- 20% 15% --- --- I 3-- 10% I --- --- --- I 5% --- --- -1-_ -1--- -1-- 0% 3-- -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 9.97 34.21 28.88 15.45 16.62 22.21 8.65 8.68 11.02 12.11 13.47 1st Qt 7.42 27.08 23.53 11.21 12.12 17.35 4.35 5.67 8.17 9.13 10.35 Median 5.71 21.64 20.13 8.62 9.79 15.01 2.34 4.18 6.52 7.52 8.67 3rd Qt 4.18 15.88 16.52 6.24 8.00 13.11 0.89 2.49 5.24 6.16 7.41 Low 1.39 3.63 11.07 0.60 5.05 10.60 -1.38 0.17 2.82 4.10 5.78 I International EQ Comp Net Ret 5.10 10.23 13.86 3.27 6.86 15.54 1.16 2.52 5.36 6.20 7.29 Rank 58 88 87 90 86 44 71 74 72 74 77 1 MSCI EAFE Net Ret 5.75 23.29 20.56 8.66 8.55 12.96 0.77 2.26 5.05 6.01 7.39 Rank 48 41 45 49 65 77 76 78 76 77 75 147 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 100% 80% 60% I 40% ---- 20% --- ---- --- -20% --- -40% _ -60% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 34.21 26.80 0.26 26.86 78.78 -24.04 41.33 37.26 38.35 32.12 1st Qt 27.08 21.29 -8.92 18.71 45.58 -39.49 18.96 30.37 21.13 23.92 Median 21.64 18.60 -12.44 13.17 35.69 -43.29 12.52 26.42 15.94 20.01 3rd Qt 15.88 15.86 -15.60 9.07 27.76 -47.85 8.13 22.27 11.99 16.56 Low 3.63 6.67 -22.34 3.16 11.82 -56.19 0.30 9.78 6.52 9.77 I International EQ Comp Net Ret 10.23 17.61 -15.04 18.37 57.93 -47.94 11.02 27.62 13.15 17.66 Rank 88 60 71 25 14 75 60 41 68 69 1 MSCI EAFE Net Ret 23.29 17.90 -11.73 8.21 32.46 -43.06 11.63 26.85 14.01 20.69 Rank 41 56 42 78 60 47 54 45 61 42 148 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 4 3 6 5 17 17 Positive Periods 3 3 8 9 14 15 33 33 Up Market Capture 0.65 0.85 1.07 1.01 Down Market Capture 6.39 1.23 0.94 1.02 Batting Average 0.00 0.25 0.50 0.46 Worst Quarter 4,66 0,73 21,66 18,95 21,66 18,95 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 10.23 23.29 15,04 13,38 15,04 13,38 47,94 46,2 0 Best 4 Quarters 10.23 23.29 17.66 24.29 71.81 55.20 71.81 58.14 Standard Deviation 10.81 10.08 18.04 16.73 22.94 22.12 22.11 21.02 Beta 0.87 1.05 1.00 1.02 Alpha 2,20 1,34 0.64 0,0 R-Squared 0.86 0.95 0.92 0.95 Sharpe Ratio 0.94 2.30 0.18 0.51 0.67 0.58 0.21 0.23 Treynor Ratio 11.64 3.04 15.53 4.49 Tracking Error 3.04 4.22 6.53 5.05 Information Ratio 3,66 1..1.6 0.35 ��'�.�'�1. -j 149 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31/13 21.9 ro 19.1 16.4 • . • c • .� . 13.6 � • :'. • • . . 0 10.8 • . . . i •� • • ' ' ' . • • •�•; ' . . • Median 8.0 • . Return 5.2 .• 2.3 • • • -0.4 • • -3.2 -6.0 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 3.27 90 18.04 60 1 MSCI EAFE 8.66 49 16.73 33 Median 8.62 17.56 5 Years Ending 12/31/13 23.9 ro 22.1 20.4 ' c 18.6 t • 0 16.8 •. • �. . 15.0 • Z ' .• • •• • • Median • • • Return 13.2 .. • • •� • • 11.4 Q 9.6 ' 7.8 • 6.0 10.0 12.6 15.2 17.8 20.4 23.0 25.6 28.2 30.8 33.4 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 15.54 44 22.95 62 1 MSCI EAFE 12.96 77 22.12 50 Median 15.01 22.14 150 City of Clearwater Employees Pension Fund Earnest Partners as of 12/31/13 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 4/30/08 Earnest Partners MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Earnest Partners 6.11 15.81 15.81 8.11 18.04 4.67 MSCI EAFE 5.75 23.29 23.29 8.66 12.96 1.50 Asset Growth(5000) Beginning Market Value 42,807 39,235 39,235 29,711 16,392 29,002 Net Contributions&Withdrawals -2 -18 -18 5,442 5,438 5,438 Gain/Loss+Income 2,613 6,201 6,201 10,264 23,588 10,978 Ending Market Value 45,418 45,418 45,418 45,418 45,418 45,418 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Arm Hldgs Plc Information Technology 4.89 Energy 16.23 Core Laboratories N Energy 4.79 Materials 12.21 Shire Health Care 3.77 Industrials 7.44 Denso Corp Consumer Discretionary 3.45 Consumer Discretionary 7.47 Icici Bk Ltd Financials 3.27 Consumer Staples 4.64 Amadeus It Hldgs Sa Information Technology 2.89 Health Care 15.52 Dnb Asa Financials 2.87 Financials 22.11 Getinge Ab Health Care 2.85 Information Technology 12.97 Roche Holdings Ag Health Care 2.71 Telecom Services 1.41 Diageo Consumer Staples 2.70 Utilities 0.00 151 City of Clearwater Employees Pension Fund Earnest Partners as of 12/31/13 Asset Allocation($000) Cash&Equiv $1,143 2.52% Intl Equity $44,275 97.48% Risk/Return Analysis Periods from 4/08 to 12/13 Alpha 0.85 Beta 1.06 R-Squared 0.96 5.0 4.5 4.0 3.5 a 3.0 cC 7� 2.5 N 2.0 1.5 Q 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio e Earnest Partners 4.67 23.04 0.19 0.64 1 MSCI EAFE 1.50 22.23 0.05 T" 91-Day Treasury Bill 0.29 0.17 0.00 152 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/13 40% 35% 30% ol 25% ol 1 ------- 20% 15% ------ ------ 10% ------- 5% ------- 0% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 9.97 34.21 28.88 15.45 16.62 22.21 1st Qt 7.42 27.08 23.53 11.21 12.12 17.35 Median 5.71 21.64 20.13 8.62 9.79 15.01 3rd Qt 4.18 15.88 16.52 6.24 8.00 13.11 Low 1.39 3.63 11.07 0.60 5.05 10.60 e Earnest Partners Net Ret 6.11 15.81 16.49 8.11 10.18 18.04 Rank 43 75 75 57 44 19 1 MSCI EAFE Net Ret 5.75 23.29 20.56 8.66 8.55 12.96 Rank 48 41 45 49 65 77 153 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% --------- 10 -------- -------- 0% Oo -10% e-- ------ -20% -----------00 -30 2013 2012 2011 2010 2009 High 34.21 26.80 0.26 26.86 78.78 1st Qt 27.08 21.29 -8.92 18.71 45.58 Median 21.64 18.60 -12.44 13.17 35.69 3rd Qt 15.88 15.86 -15.60 9.07 27.76 Low 3.63 6.67 -22.34 3.16 11.82 e Earnest Partners Net Ret 15.81 17.18 -6.88 16.61 55.54 Rank 75 64 18 32 16 1 MSCI EAFE Net Ret 23.29 17.90 -11.73 8.21 32.46 Rank 41 56 42 78 60 154 City of Clearwater Employees Pension Fund December 31, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20% 18% 16% 14% 12% 10% 8%- c c e 6% 1 4% ______ 2 0% -2% 12113 9/13 6113 3/13 12112 High 15.45 16.37 17.54 14.00 12.88 1 st Qt 1 1.21 11.23 12.97 9.07 8.10 Median 8.62 8.75 10.57 6.39 5.66 3rd Qt 6.24 6.02 8.26 4.69 3.97 Low 0.60 -1.12 2.15 0.54 0.48 e Easiest Partners Net Ret 8.1 1 8.30 11.05 8.12 8.36 Rank 57 56 42 32 22 1 MSCIEAFE Net Ret 8.66 8.97 10.55 5.49 4.04 Rank 49 46 50 61 73 Earnest Partners Value Added Analysis - Net of Fee 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% E> 5.0% 5.2 3.4 3.1 3.9 1.3 2.0 0 204 1.7 �1 0.0% O.O 0.3 -1.3 -1.2 -1.9 -5.0% _2.4 -2.11 -2.9 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.MSCI EAFE ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 155 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31/13 21.9 ro 19.1 16.4 • . • c • .� . 13.6 � • :'. • • . . 0 10.8 • . . . i •� • • ' ' ' . • • •�•; ' . . • Median 8.0 • . Return 5.2 .• 2.3 • • • -0.4 • • -3.2 -6.0 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 8.11 57 18.37 65 1 MSCI EAFE 8.66 49 16.73 33 Median 8.62 17.56 5 Years Ending 12/31/13 23.9 ro 22.1 20.4 ' c 18.6 t • 0 16.8 •. • �. . 15.0 • Z ' • .• • •• • • Median • • • Return 13.2 .. • • •� • • 11.4 Q 9.6 ' 7.8 • 6.0 10.0 12.6 15.2 17.8 20.4 23.0 25.6 28.2 30.8 33.4 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank e Earnest Partners 18.04 19 23.69 70 1 MSCI EAFE 12.96 77 22.12 50 Median 15.01 22.14 156 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 12/13 Portfolio MSCI EAFE Total Number Of Securities 51 904 Equity Market Value 44,275,079 Average Capitalization $(000) 40,648,702 63,124,873 Median Capitalization $(000) 21,457,608 9,063,692 Equity Segment Yield 2.01 3.07 Equity Segment P/E -Average 19.93 19.47 Equity Segment P/E - Median 18.51 19.35 Equity Segment Beta 1.03 1.00 Price/Book Ratio 1.94 1.74 Debt/Equity Ratio 86.95 87.94 Five Year Earnings Growth 6.24 6.05 Five Year Dividend Growth 3.76 3.99 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Arm Hldgs Plc 2,165,514 4.89 13.76 Core Laboratories N 2,119,545 4.79 13.05 Shire 1,667,438 3.77 17.71 Denso Corp 1,526,045 3.45 13.13 Icici Bk Ltd 1,446,731 3.27 21.95 Amadeus It Hldgs Sa 1,277,047 2.89 20.85 Dnb Asa 1,271,558 2.87 17.81 Getinge Ab 1,260,549 2.85 -4.22 Roche Holdings Ag 1,200,397 2.71 3.88 Diageo 1,192,731 2.70 4.10 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Carnival Corp 23.93 Daphne International -26.20 China Oilfield Servi 23.74 Orient Overseas Int -14.47 Icici Bk Ltd 21.95 Bancolombia S A -14.10 Amadeus It Hldgs Sa 20.85 Banco Do Brasil S A -10.57 Dnb Asa 17.81 Banco Bradesco S A -8.75 Shire 17.71 Ericsson L M Tel Co -8.31 Societe Generale 16.69 Subsea 7 S.A. -7.93 Rio Tinto Plc 15.73 Mindray Medical Intl -6.51 Anhui Conch Cement 15.48 Schoeller Bleckmann -6.21 Hitachi 14.86 Getinge Ab -4.22 157 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/13 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.46 8.46 4.14 0.29 1.86 0.00 2.56 2.56 0.15 0.27 0.03 0.39 Austria 0.29 0.29 1.59 3.41 5.32 5.32 0.02 1.81 0 75. 0.13 0 08 0 20 Belgium 1.17 1.17 6.22 8.13 0.00 0.00 0.00 0.03 0.03 Bermuda 0.16 0.16 5.'35 62 0.00 0.00 0.02 61.1111 0.01 Brazil 0.00 0.00 2.68 0.00 6.75 5.75 0 17 0 26 0 43 Canada 0.00 0.00 1.46 0.00 6.19 6.19 6:1.6111 0.09 6:1.6161 Cayman Islands 0.19 0.19 28.70 28.72 0.76 0.00 .26 22 26 20 0.13 61.110 0 41 0 25 Channel Islands 0.46 0.46 7.1'3 5.01 0.00 0.00 0.06 0 01 0.05 China 0.06 0.06 7.93 7.95 8.01 0.00 10.46 10.48 0.12 61.6161 0.20 0.32 Colombia 0.00 0.00 1.64 0.00 14 10 14.10 0 11 0 2 3 0 351 Czech Republic 0.00 0.00 1.15 1.15 4.59 0.10 0 07 0.01 0.05 0 01 Denmark 1.12 1.12 8.35 10.26 0.00 0.00 0 02 61.0 3 0 05 Finland 0.88 0.88 10.57 12.56 0.00 0.00 0 6171 0 02 0 616 France 9.23 9.23 3.84 5.71 1.58 1.58 14.63 16.69 0.20 019 0.17 0.18 Germany 8.69 8.69 11.29 13.28 1.77 1.77 9.29 11.26 034 0 18 0 04 0 56 Greece 0.04 0.04 21.45 23.63 0.00 0.00 0 01 61.1111 0 01 Hong Kong 2.71 2.71 1.47 1.49 2.13 10.90 14 49 14 5.7 0.03 0.06 034 0 26 India 0.00 0.00 2.92 0.00 21.95 21.95 019 0.64 0.45 Ireland 0.33 0.33 9.05 11.00 2.73 0.00 1.27 1.27 0.06 0 01 0 28 11 23 Isle of Man 0.06 0.06 4.18 3.53 0.00 0.00 0.00 11.1111 0.00 Israel 0.45 0.45 4.67 6.33 0.00 0.00 0.01 0 01 11.1111 Italy 1.95 1.95 10.58 12.57 0.00 0.00 0 08 0 05 0 1') Japan 21.62 21.62 9.59 2.31 9.46 9.46 13.57 6.03 038 0.80 0.38 0.80 Luxembourg 0.25 0.25 3.00 2.50 2.04 0.00 712 7 93 0 616 61.1111 0 21 0 27 Mexico 0.02 0.02 2222 76165 0.00 0.00 0.01 61.1111 0.01 Netherlands 3.17 3.17 7.25 9.02 4.62 0.00 13.05 13.05 0.01 0 08 0.27 0.20 New Zealand 0.12 0.12 5.7 4 61 0.00 0.00 0.01 0.00 0.01 Norway 0.63 0.63 10.48 9.52 5.53 5.76 15.19 12.11 0.20 11.115. 0.26 0.44 Panama 0.00 0.00 1.61 0.00 23.93 23.93 010 0.39 0.28 Portugal 0.18 1 0.18 1 0 51 1 1.28 1 0.00 0.00 0.01 61.6161 0.01 Benchmark: MSCI EAFE Index Gross Dividend 158 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/13 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 8.11 6 02 0.00 0.00 0.01 63.3333 0.01 Singapore 1.47 1.47 1.07 0.38 1.13 1.13 7 62 23 0.02 0.00 0 04 0 02 South Africa 0.39 0.39 0 81 1.45 0.00 0.00 0.03 0 01 0.02 South Korea 0.00 0.00 1.57 0.00 5.92 5.92 0 10 0.09 6: 01 Spain 3.19 3.19 9.40 11.37 2.60 2.60 18.72 20.85 33.02 33.02 0.24 0.21 Sweden 3.21 3.21 5.05 5.06 3.24 3.24 4 22 4 22 63.3333 0.00 33.30 3y.30 Switzerland 9.12 9.12 2.54 4.25 8.43 2.84 4.87 5.36 0.03 015 0.20 0.07 Taiwan 0.00 0.00 2.24 0.00 0.42 0.42 0l4 0.01 01'3 United Kingdom 20.31 20.31 5.38 7.78 16.57 8.89 10.97 11.57 0.04 0 35 0.93 0.62 United States 0.00 0.00 6.96 45.37 2.59 2.59 33.45 0.30 0.18 0.03 100.00 100.00 1 6.43 1 5.77 1 100.00 100.00 6.83 1 6.23 1 1.4.7 0.39 1.87 0.79 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 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 16.43 6.89 7.76 5.90 0.30 0.01 0.32 Materials 11.82 8.23 8.08 3.49 0.54 0,08 0.46 Industrials 8.66 13.03 3,01. 5.12 0,71. 0.03 0,68 Consumer Discretionary 5.69 11.84 10.97 5.35 0.32 0.03 0.34 Consumer Staples 2.82 11.25 4.10 3.50 0.02 0.19 0.21 Health Care 16.32 9.97 3.40 7.33 0,64 0.10 0,54 Financials 25.56 25.26 5.59 6.26 0,1.7 0.00 0,1.7 Information Technology 11.25 4.34 12.91 8.11 0.54 0.16 0.70 Telecom. Services 1.46 5.48 6.19 11.77 0,08 0,24 0,32 Utilities 0.00 3.72 1.68 0.00 0.15 0.15 100.00 100.00 6.23 5.76 0.13 0.35 0.47 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 0.09% [Actual Return 6.32%] - [Buy Hold Return 6.23%] 160 City of Clearwater Employees Pension Fund WHV as of 12/31/13 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 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 6.63 14.10 14.10 4.85 16.15 1.69 MSCI EAFE 5.75 23.29 23.29 8.66 12.96 1.50 Asset Growth(5000) Beginning Market Value 33,890 31,677 31,677 31,374 15,083 29,002 Net Contributions&Withdrawals -2 -7 -7 -19 -22 -22 Gain/Loss+Income 2,248 4,466 4,466 41781 21,075 7,156 Ending Market Value 36,136 36,136 36,136 36,136 36,136 36,136 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Canadian Pac Railway Industrials 7.14 Energy 30.25 Bhp Billiton Ltd Materials 5.13 Materials 26.75 Agrium Inc Materials 4.83 Industrials 19.77 Rio Tinto Plc Materials 4.77 Consumer Discretionary 0.00 Schlumberger Ltd Energy 4.66 Consumer Staples 15.45 Canadian Natl Ry Co Industrials 4.57 Health Care 3.03 Tenaris S A Energy 4.45 Financials 4.75 Nestle S A Consumer Staples 4.39 Information Technology 0.00 Core Laboratories N Energy 4.29 Telecom Services 0.00 Noble Corp Plc Energy 4.07 Utilities 0.00 161 City of Clearwater Employees Pension Fund WHV as of 12/31/13 Asset Allocation($000) Cash&Equiv $1,572 4.35% Intl Equity $34,564 95.65% Risk/Return Analysis Periods from 4/08 to 12/13 Alpha -0.33 Beta 1.11 R-Squared 0.89 1.8 1.6 1.4 1.2 cC � 1.0 0.8 c 0.6 Q 0.4 0.2 -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 1.69 24.46 0.06 -0.12 1 MSCI EAFE 1.50 22.23 0.05 T" 91-Day Treasury Bill 0.29 0.17 0.00 162 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/13 40% 35% 30% ol 25% ol 1 ------- 20% ------- ------- W 10% ------- 5% -- ----- w 0%1 V Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 9.97 34.21 28.88 15.45 16.62 22.21 1st Qt 7.42 27.08 23.53 11.21 12.12 17.35 Median 5.71 21.64 20.13 8.62 9.79 15.01 3rd Qt 4.18 15.88 16.52 6.24 8.00 13.11 Low 1.39 3.63 11.07 0.60 5.05 10.60 w WHV Net Ret 6.63 14.10 15.52 4.85 7.89 16.15 Rank 36 83 81 85 76 38 1 MSCI EAFE Net Ret 5.75 23.29 20.56 8.66 8.55 12.96 Rank 48 41 45 49 65 77 163 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% --------- 10 0% -10% --- ----- -20% --------- -30 2013 2012 2011 2010 2009 High 34.21 26.80 0.26 26.86 78.78 1st Qt 27.08 21.29 -8.92 18.71 45.58 Median 21.64 18.60 -12.44 13.17 35.69 3rd Qt 15.88 15.86 -15.60 9.07 27.76 Low 3.63 6.67 -22.34 3.16 11.82 w WHV Net Ret 14.10 16.97 -13.64 17.58 55.98 Rank 83 66 61 28 15 1 MSCI EAFE Net Ret 23.29 17.90 -11.73 8.21 32.46 Rank 41 56 42 78 60 164 City of Clearwater Employees Pension Fund December 31, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20% 18% 16% 14% 12% __________ __________ w 10% 8% 6% 1 4%- ______ 2% O% -2 12113 9/13 6113 3113 12112 High 15.45 16.37 17.54 14.00 12.88 1 st Qt 1 1.21 11.23 12.97 9.07 8.10 Median 8.62 8.75 10.57 6.39 5.66 3rd Qt 6.24 6.02 8.26 4.69 3.97 Low 0.60 -1.12 2.15 0.54 0.48 - WHV Net Ret 4.85 7.45 10.90 6.23 5.90 Rank 85 63 45 51 47 1 MSCIEAFE Net Ret 8.66 8.97 10.55 5.49 4.04 Rank 49 46 50 61 73 WHV Value Added Analysis - Net of Fee 35.0% 30.0% 25.0% 20.0% 15.0% 12.2 10.0% 7.E> 6.5 E>.E> 5.0% 2.9 1.8 1 1.7 0.8 0.0% 0.3 -0.1 -0.2 -2.0 -5.0% 11 11 3.1 4.8 -6.3 -10.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.MSCI EAFE ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 165 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31/13 21.9 ro 19.1 16.4 • . • c • .� . 13.6 � • :'. • • . . 0 10.8 • . . . i •� • • ' ' ' . • • •�•; ' . . • Median 8.0 • . Return 5.2 •• we 2.3 • • • -0.4 • • -3.2 -6.0 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 4.85 85 19.41 79 1 MSCI EAFE 8.66 49 16.73 33 Median 8.62 17.56 5 Years Ending 12/31/13 23.9 ro 22.1 20.4 ' c 18.6 t • 0 16.8 •. • �. . W • . 15.0 2 .• •• . Median • • • Return 13.2 .. • • •� • • 11.4 Q 9.6 ' 7.8 • 6.0 10.0 12.6 15.2 17.8 20.4 23.0 25.6 28.2 30.8 33.4 36.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 16.15 38 23.06 64 1 MSCI EAFE 12.96 77 22.12 50 Median 15.01 22.14 166 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 12/13 Portfolio MSCI EAFE Total Number Of Securities 37 904 Equity Market Value 34,564,431 Average Capitalization $(000) 59,687,731 63,124,873 Median Capitalization $(000) 32,285,188 9,063,692 Equity Segment Yield 2.13 3.07 Equity Segment P/E -Average 18.53 19.47 Equity Segment P/E - Median 18.01 19.35 Equity Segment Beta 0.00 1.00 Price/Book Ratio 2.18 1.74 Debt/Equity Ratio 54.48 87.94 Five Year Earnings Growth 0.22 6.05 Five Year Dividend Growth 7.93 3.99 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Canadian Pac Railway 2,466,516 7.14 22.99 Bhp Billiton Ltd 1,769,790 5.13 2.56 Agrium Inc 1,667,680 4.83 9.76 Rio Tinto Plc 1,646,345 4.77 15.73 Schlumberger Ltd 1,608,464 4.66 2.34 Canadian Natl Ry Co 1,576,603 4.57 12.91 Tenaris S A 1,535,704 4.45 -6.08 Nestle S A 1,515,954 4.39 5.73 Core Laboratories N 1,479,863 4.29 13.05 Noble Corp Plc 1,406,999 4.07 -0.16 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Canadian Pac Railway 22.99 Ubs Ag -6.19 Axa Sa 20.68 Tenaris S A -6.08 Ingersoll-Rand Plc 20.21 Syngenta Ag -1.67 Manulife Finl Corp 19.94 Suncor Energy Inc Ne -1.50 Partnerre Hldgs Ltd 15.91 Teck Resources Ltd -1.28 Rio Tinto Plc 15.73 Noble Corp Plc -0.16 Core Laboratories N 13.05 Vale S A -0.10 Canadian Natl Ry Co 12.91 Weatherford Internat 1.04 Basf Ag 12.28 Fibria Celulose S A 1.39 Finning Tractor& Eq 12.04 Talisman Energy Inc 1.86 167 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 12/13 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.46 8.46 4.14 0.29 5.35 0.00 2.56 2.56 0.07 0.27 0 08 0.26 Austria 0.29 0.29 1.59 3.41 0.00 0.00 0.01 0 01 0.01 Belgium 1.17 1.17 6.22 8.13 0.00 0.00 0.00 66.03 66.03 Bermuda 0.16 0.16 5.'65 62 4.91 0.00 9.37 9.37 0 56 61.00 0.72 0.16 Brazil 0.00 0.00 3.09 0.00 0 05 0 05 0 20 66.00 0 20 Canada 0.00 0.00 26.62 0.00 10.86 10.86 1.71 2.89 1.18 Cayman Islands 0.19 0.19 28.70 28.72 4.40 0.00 0 16 0 16 0.94 61.00 1.27 1y.33 Channel Islands 0.46 0.46 7.1'6 5.01 0.00 0.00 0.06 0 01 0.05 China 0.06 0.06 7.93 7.95 0.00 0.00 61.00 61.00 0.00 Denmark 1.12 1.12 8.35 10.26 0.00 0.00 0 02 66.03 0 05 Finland 0.88 0.88 10.57 12.56 0.00 0.00 0 6151 0 02 0 616 France 9.23 9.23 3.84 5.71 0.63 0.00 20.68 20.68 0.22 0 23 0.11 0.10 Germany 8.69 8.69 11.29 13.28 2.75 0.00 12.28 12.28 0 29 0 23 0.03 0 49 Greece 0.04 0.04 21.45 23.63 0.00 0.00 0 01 61.1111 0 01 Hong Kong 2.71 2.71 1.47 1.49 0.00 0.00 0.13 66.02 0.12 Ireland 0.33 0.33 9.05 11.00 3.74 0.00 20.21 20.21 0.09 0 01 0.42 0.50 Isle of Man 0.06 0.06 4.18 3.53 0.00 0.00 0.00 66.00 0.00 Israel 0.45 0.45 4.67 6.33 0.00 0.00 0.01 0 01 66.00 Italy 1.95 1.95 10.58 12.57 0.00 0.00 0 08 0 05 0 1') Japan 21.62 21.62 9.59 2.31 0.00 0.00 0 65 1.43 0.75 Luxembourg 0.25 0.25 3.00 2.50 5.10 0.00 6 615 6 615 0 17 61.1111 0 46 0 63 Mexico 0.02 0.02 2222 76165 0.00 0.00 0.01 61.00 0.01 Netherland Antilles 0.00 0.00 4.89 0.00 2.34 2.34 03 0.11 66.20 Netherlands 3.17 3.17 7.25 9.02 6.64 0.00 10.90 10.90 0.03 0 08 0.24 0.19 New Zealand 0.12 0.12 5.7 4 61 0.00 0.00 0.01 0.00 0.01 Norway 0.63 0.63 10.48 9.52 0.11 0.00 4.33 4.33 0 02 0.00 0 01 0 03 Portugal 0.18 0.18 0 51 1.28 0.00 0.00 0.01 61.00 0.01 Scotland 0.06 0.06 5.11 6 02 0.00 0.00 0.01 61.00 0.01 Singapore 1.47 1.47 1.07 0.38 0.00 0.00 0.08 0.00 0.08 South Africa 1 0.39 1 0.39 1 0 81 1 1.45 1 0.00 1 0.00 1 1 0.03 1 0 01 1 1 0.02 Ly Benchmark: MSCI EAFE Index Gross Dividend 168 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 12/13 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 Spain 3.19 3.19 9.40 11.37 0.00 0.00 0 09 0 08 0 18 Sweden 3.21 3.21 5.05 5.06 0.00 0.00 0.04 0.02 0.02 Switzerland 9.12 9.12 2.54 4.25 16.57 0.00 3.51 3.51 0 29 0 22 0.16 0.35 United Kingdom 20.31 20.31 5.38 7.78 11.54 0.00 8.05 8.05 0.09 0 62 0.31 0 22 United States 0.00 0.00 3.66 100.00 11.23 11.23 0.4 0.66 0.41 0.84 100.00 1 100.00 1 6.43 1 5.77 1 100.00 100.00 1 7.16 1 7.16 1 85 1 0.66 1 3.58 1.39 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 12/13 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 31.30 6.89 2.68 5.90 1.,01 0.04 0,97 Materials 27.01 8.23 6.61 3.49 0.84 0,43 0.42 Industrials 18.14 13.03 17.53 5.12 2.25 0,03 2.22 Consumer Discretionary 0.00 11.84 5.35 0.00 0.05 0.05 Consumer Staples 15.74 11.25 5.21 3.50 0.27 ��.1.(') 0.17 Health Care 3.09 9.97 4.78 7.33 0,08 1.1 1O Financials 4.72 25.26 8.20 6.26 0.09 ��.1 1. Information Technology 0.00 4.34 8.11 0.00 ��.1 1.(') Telecom. Services 0.00 5.48 11.77 0.00 0,33 0, Utilities 0.00 3.72 1.68 0.00 0.15 0.15 100.00 100.00 7.16 5.76 2.37 0,97 1.40 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 -0.19% [Actual Return 6.97%] - [Buy Hold Return 7.16%] 170 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 12/31/13 Portfolio Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.01 1 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Eaton Vance Mgnu MSCI Emg Mkts Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 Eaton Vance Mgmt 2.56 1.22 1.22 -1.05 14.82 0.56 MSCI Emg Mkts 1.86 -2.27 -2.27 -1.74 15.15 -0.28 Asset Growth(5000) Beginning Market Value 37,403 37,899 37,899 30,980 4,244 8,277 Net Contributions&Withdrawals 0 0 0 7,692 7,536 7,536 Gain/Loss+Income 956 461 461 -314 26,579 22,546 Ending Market Value 38,359 38,359 38,359 38,359 38,359 38,359 171 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 12/31/13 Asset Allocation($000) Cash&Equiv $0 0.00% Intl Equity $38,359 100.00% Risk/Return Analysis Periods from 4/08 to 12/13 Alpha 0.13 Beta 0.98 R-Squared 0.98 0.6 0.5 V 0.4 0.3 C4 0.2 b N 0.1 0.0 Q -0.1 -0.2 0.3�F. . . . . . . . . . . . . . -2.0 0.0 2.0 4.0 6.0 8.0 10.012.014.016.018.020.022.024.026.028.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio v Eaton Vance Mgmt 0.56 25.45 0.01 0.08 1 MSCI Emg Mkts -0.28 26.67 -0.02 T" 91-Day Treasury Bill 0.29 0.17 0.00 172 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 12/13 25% 20% 15% -1---- 10% --------- v ------- ------- 5 ------- 1 -------- 0% ------- 1 -5% ------- -10% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 7.43 12.47 15.35 5.82 10.25 20.78 1st Qt 3.95 1.94 11.27 1.45 6.60 18.77 Median 2.04 -1.70 8.45 -0.80 4.81 16.20 3rd Qt 0.66 -4.99 6.69 -2.72 2.39 14.43 Low -1.30 -7.49 3.37 -7.25 -0.45 11.86 v Eaton Vance Mgmt Net Ret 2.56 1.22 9.54 -1.05 4.55 14.82 Rank 44 30 39 54 53 68 1 MSCI Emg Mkts Net Ret 1.86 -2.27 7.67 -1.74 3.12 15.15 Rank 55 52 60 60 66 62 173 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 100% 90% 80% ---r----- 70% 60% 50% 40% 30% 20% --------- -------- -------- -- ----- 10 0% -------- -10% -----------i -30%1 U 2013 2012 2011 2010 2009 High 12.47 29.81 3.58 29.17 92.03 1st Qt 1.94 23.52 -12.46 24.10 81.18 Median -1.70 20.02 -17.77 20.28 75.63 3rd Qt -4.99 16.67 -21.53 17.49 68.30 Low -7.49 8.09 -25.62 8.50 27.05 v Eaton Vance Mgmt Net Ret 1.22 18.55 -19.27 23.33 67.01 Rank 30 63 65 29 76 1 MSCI Emg Mkts Net Ret -2.27 18.62 -18.17 19.19 79.02 Rank 52 63 54 61 32 174 City of Clearwater Employees Pension Fund December 31, 2013 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20% 18% 16% 14% 12% __________ __________ 10% 8% 6% 4% v 1 1 v 1 __________ 2% O% v 1 -2% 12113 9/13 6113 3/13 12112 High 15.45 16.37 17.54 14.00 12.88 1 st Qt 1 1.21 11.23 12.97 9.07 8.10 Median 8.62 8.75 10.57 6.39 5.66 3rd Qt 6.24 6.02 8.26 4.69 3.97 Low 0.60 -1.12 2.15 0.54 0.48 v Eaton Vance Mg-t Net Ret -1.05 0.54 4.54 3.86 5.68 Rank 97 90 89 82 49 1 MSCI Eing Mkts Net Ret -1.74 -0.00 3.72 3.59 4.98 Rank 97 91 91 84 58 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% 0.7 0.5 0.4 O.5 MM 0.2 0.0% O. O.O O. 0.4 -1.0% -1.4 -1.3 2.0% -3.0% -2.6 -4.0% -5.0% -6.O% -7.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6/13 9/13 12/13 ® Quarterly Value Added vs.MSCI Emg Mkts ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 175 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 12/31/13 15.0 ro 10.0 1� • c 5.0 • w � 0.0 • : .' •• • . Median . �.�1 •�p Return -5.0 •• ' c Q � . -10.0 • -15.0 j j 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 4.85 6 19.41 61 1 MSCI EAFE 8.66 2 16.73 26 Median -0.80 18.90 5 Years Ending 12/31/13 24.0 22.0 • • c 20.0 • • • ti' • • 18.0 � .• 16.0 ' • Median • • . . Return f'' • •. •. 14.0 ��} 'b% • c ' Q 12.0 • . • 10.0 • 8.0 12.0 14.6 17.2 19.8 22.4 25.0 27.6 30.2 32.8 35.4 38.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 16.15 51 23.06 22 1 MSCI EAFE 12.96 88 22.12 18 Median 16.20 24.75 176 City of Clearwater Employees Pension Fund Fixed Income Comp as of 12/31/13 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 0.53 -0.75 -0.75 3.85 6.21 5.10 6.63 BC Agg -0.14 -2.02 -2.02 3.26 4.44 4.55 6.87 Asset Growth(5000) Beginning Market Value 208,360 210,840 210,840 192,283 198,649 177,976 59,224 Net Contributions&Withdrawals -123 14 14 -5,683 -6,622 -6,622 -6,622 Gain/Loss+Income 1,103 -1,514 -11514 22,740 17,313 37,986 156,738 Ending Market Value 209,340 209,340 209,340 209,340 209,340 209,340 209,340 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 4.20 Finance 15.35 United States Treas Government 3.97 Government 24.69 United States Treas Government 3.52 Industrials 16.73 FNMA C130-Tba Jan Mortgage 2.80 Mortgage 33.57 United States Treas Government 1.82 Transportation 1.44 United States Treas Government 1.68 Utilities 3.19 United States Treas Government 1.47 Municipals 3.15 United States Treas Government 1.43 Foreign 1.57 FNMA Ci 15-Tba Jan Mortgage 1.27 Miscellaneous 0.31 4283a-Ew Mortgage 1.08 Holdings and allocations only include SMA accounts. 177 City of Clearwater Employees Pension Fund Fixed Income Comp as of 12/31/13 Asset Allocation($000) Em Other $23 0.01% Domestic Fixed ® Domestic Equity $212,856 101.68% $4 0.00% Cash&Equiv $-3,542 -1.69% Risk/Return Analysis Periods from 12/87 to 12/13 Alpha 0.25 Beta 0.60 R-Squared 0.58 7.0 6.5 6.0 5.5 b N 5.0 4.5 Q 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 6.63 3.14 0.92 -0.11 1 BC Agg 6.87 4.09 0.76 T" 91-Day Treasury Bill 3.75 1.26 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 12/13 18% 16% 14% 12% 10% 8% --- 6% --- --- --- --- --- --- 4% --- �_ -- - - - - - 2% - -2% -1-- -4% -6% -8% -10% 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 3.73 9.60 12.16 9.41 10.84 16.93 9.23 8.46 8.48 7.99 8.04 1st Qt 1.24 1.86 4.82 5.82 6.72 8.32 6.55 6.62 6.33 6.07 6.03 Median 0.31 -0.66 2.63 4.08 4.98 6.01 5.26 5.44 5.33 5.00 4.99 3rd Qt -0.05 -2.00 1.27 3.24 3.97 4.44 4.30 4.74 4.65 4.43 4.42 Low -1.44 -8.48 -0.87 1.01 1.21 0.95 1.17 1.94 2.15 2.30 2.31 F Fixed Income Comp Net Ret 0.53 -0.75 2.83 3.85 4.72 6.21 5.59 5.64 5.57 5.23 5.10 Rank 39 51 46 56 54 47 42 43 42 42 45 1 BC Agg Net Ret -0.14 -2.02 1.05 3.26 4.07 4.44 4.58 4.91 4.84 4.57 4.55 Rank 80 76 80 74 71 75 67 70 68 71 70 179 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 35% 30% 25% 20% 15% 10% ------ 5% -- -- -1---- --- --- 0% ---- -== -5% ---- -10% ---- -15% -20% -25% -30% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 10.86 1st Qt 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 5.59 Median -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 4.51 3rd Qt -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 3.35 Low -8.48 0.99 0.01 0.69 -1.54 -25.82 2.34 2.13 1.36 1.36 F Fixed Income Comp Net Ret -0.75 6.53 5.94 7.37 12.37 2.54 5.94 5.05 2.59 3.93 Rank 51 52 53 48 35 46 61 31 52 67 1 BC Agg Net Ret -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 4.34 Rank 76 74 25 63 71 24 40 65 62 56 180 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 3 1 3 3 4 17 22 Positive Periods 3 1 11 9 17 16 87 82 Up Market Capture 1.13 1.04 1.25 0.90 Down Market Capture 0.53 0.53 0.46 0.33 Batting Average 1.00 0.75 0.75 0.50 Worst Quarter 2.1 2,32 2.1 7.32 2,13 7.32 7.54 2,87 Best Quarter 0.64 0.57 2.32 3.82 5.72 3.82 5.72 7.96 Worst 4 Quarters 0,77 7.07 0,77 7.07 0,77 7.07 0,77 3,23 Best 4 Quarters 0,77 2,02 7.10 7.84 15.09 9.50 15.87 18.48 Standard Deviation 2.63 2.52 2.35 3.07 3.61 3.24 3.14 4.09 Beta 0.99 0.65 0.88 0.60 Alpha 0.32 0.41 0.56 0.25 R-Squared 0.94 0.71 0.62 0.58 Sharpe Ratio 0,31 0,83 1.60 1.03 1.69 1.33 0.92 0.76 Treynor Ratio 0,83 5.75 6.94 4.84 Tracking Error 0.51 1.69 2.30 2.57 Information Ratio 2.52 0.32 0.74 �'�. 181 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/13 9.0 ro 8.0 7.0 6.0 � ti w 5.0 • • • • •.• i Median . •• ' Return a • ' • N 3.0 • & 2.0 • Q 1.0 • • 0.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 3.85 56 2.35 23 1 BC Agg 3.26 74 3.07 46 Median 4.08 3.18 5 Years Ending 12/31/13 14.0 A 12.0 c 10.0 8.0 O � N • • 6.0 . • ' • •. Median Return N 4.0 s Q 2.0 0.0 -2.0 0.0 0.9 1.8 2.7 3.6 4.5 5.4 6.3 7.2 8.1 9.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 6.21 47 3.61 42 1 BC Agg 4.44 75 3.24 31 Median 6.01 4.01 182 City of Clearwater Employees Pension Fund Dodge & Cox as of 12/31/13 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 Dodge&Cox BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/29/04 Dodge&Cox 1.11 0.65 0.65 4.49 7.04 5.31 BC Agg -0.14 -2.02 -2.02 3.26 4.44 4.43 Asset Growth(5000) Beginning Market Value 114,071 114,596 114,596 105,690 98,118 75,656 Net Contributions&Withdrawals -1 -4 -4 -5,012 -7,427 -7,427 Gain/Loss+Income 1,264 742 742 14,656 24,643 47,105 Ending Market Value 115,334 115,334 115,334 115,334 115,334 115,334 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 3.31 Finance 19.88 United States Treas Government 2.67 Government 10.85 United States Treas Government 2.60 Industrials 20.34 4283a-Ew Mortgage 1.97 Mortgage 35.14 FNMA Pool All 849 Mortgage 1.63 Transportation 2.32 Fhlm Pool G07491 Mortgage 1.46 Utilities 4.36 Fannie Mae Mortgage 1.46 Municipals 5.98 4136k Df Mortgage 1.45 Foreign 1.14 Aol Time Warner Inc Industrials 1.40 Miscellaneous 0.00 Fhlm Pool G07504 Mortgage 1.40 183 City of Clearwater Employees Pension Fund Dodge & Cox as of 12/31/13 Asset Allocation($000) Domestic Fixed $112,497 97.54% 49 ❑ Cash&Equiv $2,837 2.46% Risk/Return Analysis Periods from 2/04 to 12/13 Alpha 0.34 Beta 0.83 R-Squared 0.57 5.5 5.0 4.5 2 4.0 cC � 3.5 3.0 Q 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 5.31 3.46 1.05 0.32 1 BC Agg 4.43 3.39 0.81 T" 91-Day Treasury Bill 1.69 0.57 0.00 184 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/13 18% 16% 14% 12% 10% 8% ---- 6% ---- ---- --- --- 4% -L-- -1---- -- -- 2% -1--- -- -- -2% -1---- -4% -6% -8% -10% 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 3.73 9.60 12.16 9.41 10.84 16.93 9.23 8.46 8.48 7.99 1st Qt 1.24 1.86 4.82 5.82 6.72 8.32 6.55 6.62 6.33 6.07 Median 0.31 -0.66 2.63 4.08 4.98 6.01 5.26 5.44 5.33 5.00 3rd Qt -0.05 -2.00 1.27 3.24 3.97 4.44 4.30 4.74 4.65 4.43 Low -1.44 -8.48 -0.87 1.01 1.21 0.95 1.17 1.94 2.15 2.30 d Dodge & Cox Net Ret 1.11 0.65 4.18 4.49 5.24 7.04 6.07 5.98 5.94 5.54 Rank 26 31 29 39 43 34 32 35 33 36 1 BC Agg Net Ret -0.14 -2.02 1.05 3.26 4.07 4.44 4.58 4.91 4.84 4.57 Rank 80 76 80 74 71 75 67 70 68 71 185 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 35% 30% 25% 20% 15% 10% ---- ---- 5% -- -�-- - -- -1-- -�-- --- - -- 0% --- == -5% - -- -10% ------ -15% -20% -25% -30% 2013 2012 2011 2010 2009 2008 2007 2006 2005 High 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 1st Qt 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 Median -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 3rd Qt -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 Low -8.48 0.99 0.01 0.69 -1.54 -25.82 2.34 2.13 1.36 d Dodge & Cox Net Ret 0.65 7.85 5.10 7.53 14.53 1.37 5.47 5.62 2.40 Rank 31 41 61 46 24 52 67 21 63 1 BC Agg Net Ret -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 76 74 25 63 71 24 40 65 62 186 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Core Fixed income Portfolios 10% 9% 8% 7% 6% 1 5 s3 � 4% d 3% 2% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 Dcc 13 Sep 13 Jun 13 Mar 13 Dcc 12 High 5.56 4.82 6.09 8.71 9.12 1 st Qt 4.38 3.91 4.86 7.07 7.75 Median 3.72 3.48 4.18 6.23 6.93 3rd Qt 3.31 2.99 3.66 5.72 6.37 Low 2.23 2.64 3.19 4.77 5.61 a Dodge Br,Cox Return 4.49 4.15 4.71 6.20 6.82 Rank 19 17 31 51 52 1 BC Agg Return 3.26 2.86 3.51 5.52 6.19 Rank 75 85 82 80 84 Dodge & Cox Value Added Analysis - Net of Fee 14.0% 12.0% 10.0% 8.0% 6.0% 5.1 4.0% 2.0% 1.9 I 2.3 MMM 5 1.4 1.2 0.6 0.8 1.1 0.7 0.8 MM 4 0.3 0.0% 2.0% -0.5 -0.4 -0.6 1.1 ?.9 -4.0% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.BC Agg ® Cumulative Value Added - 2 Yr Rolling Avg(AillllAahZed) 187 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 3 1 3 2 4 8 12 Positive Periods 3 1 11 9 18 16 31 27 Up Market Capture 1.45 1.09 1.34 1.08 Down Market Capture 0.07 0.07 0.01 0.56 Batting Average 1.00 0.67 0.65 0.59 Worst Quarter 1,89 2,32 1,89 2,32 1,89 2,32 2,88 2.44 Best Quarter 1.11 0.57 2.67 3.82 6.98 3.82 6.98 4.57 Worst 4 Quarters 0.65 2,02 0.47 2,02 0.47 2,02 0,26 2,02 Best 4 Quarters 0.65 2,02 8.00 7.84 17.78 9.50 17.78 10.56 Standard Deviation 2.78 2.52 2.33 3.07 3.89 3.24 3.72 3.52 Beta 0.98 0.45 0.74 0.83 Alpha 0.66 0.73 0.90 0.34 R-Squared 0.83 0.34 0.38 0.57 Sharpe Ratio 0.21 0,83 1.89 1.03 1.78 1.33 0.97 0.77 Treynor Ratio 0.59 9.72 9.29 4.36 Tracking Error 0.87 2.60 3.21 2.68 Information Ratio 3.12 0.44 0.77 0.32 188 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/13 9.0 ro 8.0 7.0 6.0 • � ti w 5.0 • • • o • • 4.0 ' •• A i • Median b • r . .• ' Return • N 3.0 • • . • 2.0 • • Q 1.0 • • 0.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge&Cox 4.49 39 2.33 23 1 BC Agg 3.26 74 3.07 46 Median 4.08 3.18 5 Years Ending 12/31/13 14.0 A 12.0 c 10.0 8.0 w • • 6.0 . • ' • •. Median b : :r� , . Return �. s N 4.0 Q 2.0 0.0 -2.0 0.0 0.9 1.8 2.7 3.6 4.5 5.4 6.3 7.2 8.1 9.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge&Cox 7.04 34 3.89 49 1 BC Agg 4.44 75 3.24 31 Median 6.01 4.01 189 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 12/13 Portfolio BC Agg Total Number Of Securities 206 8,727 Total Market Value 112,497,144 Yield to Maturity 2.75 2.48 Time to Maturity 13.41 7.58 Current Coupon 5.11 3.34 Duration 5.36 5.57 Effective Convexity 0.26 0.13 Effective Duration 4.73 5.55 Effective Maturity 7.20 7.58 Yield to Maturity Time to Maturity Coupon i 0- 1 16.5% 0- 1 7.1% 0- 3 14.5% 1 - 2 8.5% 1 - 3 10.4% 3 - 5 21.7% 2 - 3 20.3% 3 - 5 8.4% 5 - 7 49.1% 3 - 4 24.8% 5 - 7 10.6% 7 - 9 13.7% 4- 5 14.80% 7 - 10 13.80/(/ 9 - 11 1.0% 5+ 15.0% 10+ 49.7% 11+ 0.0% Quality Duration Effective Duration GOVT 12.30/o- 0- 1 7.4% 0- 1 9.1% AAA 33.0% 1 - 3 18.2% 1 - 3 27.3% AA 2.8% A 13.0%--- 3 -4 18.6% 3 - 4 21.9% BAA 32.8% 4- 6 21.8% 4- 6 14.0% BA 3.1% 6- 8 15.6% 6- 8 11.4% B 0.5% NR 2.6% 8+ 18.4% 8+ 16.2% 190 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 12/31/13 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 10.85 --- --- --- --- --- --- --- 10.85 Treasury 8.88 --- --- --- --- --- --- --- 8.88 Agency 1.98 --- --- --- --- --- --- --- 1.98 Corporate 0.80 1.66 6.80 31.81 3.12 0.49 --- 1.04 45.72 Industrial --- --- 4.10 15.26 0.98 --- --- --- 20.34 Utility --- --- --- 2.68 1.18 0.49 --- --- 4.35 Finance 0.80 1.04 2.70 13.34 0.96 --- --- 1.04 19.88 Yankee --- 0.62 --- 0.52 --- --- --- --- 1.14 Transportation --- 0.39 0.96 0.97 --- --- --- --- 2.32 Mortgage 33.61 --- --- --- --- --- --- 1.52 35.13 GNMA --- --- --- --- --- --- --- 0.16 0.16 FHLMC 14.97 --- --- --- --- --- --- 0.76 15.73 FNMA 17.78 --- --- --- --- --- --- 0.60 18.38 Other Mortgage 0.86 --- --- --- --- --- --- --- 0.86 Municipals --- 0.72 5.26 --- --- --- --- --- 5.98 Cash --- --- --- --- --- Other --- --- --- --- --- Total 45.26 2.77 13.01 32.78 3.12 0.49 --- 2.57 100.00 191 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 12/13 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 21.83 12.09 1.63 1.18 0.10 0.12 0.22 Government 12.24 40.72 0.14 0,61 0.09 0.16 0.26 Industrials 21.28 11.46 1.52 0.75 0.16 0.08 0.24 Mortgage 30.06 30.70 1.65 0,15 0.00 0.54 Transportation 2.49 0.37 0,41. 0.20 0,02 0.01 1. Utilities 4.28 2.27 3.76 1.12 0.11 0.02 0.14 Municipals 6.60 0.01 1.72 0.03 0.11 0.00 0.12 Foreign 1.21 2.36 0.73 0.18 0.01 0.00 0.00 Miscellaneous 0.00 0.02 3.19 0.00 0.00 �'�.�'�('� 100.00 100.00 1.46 0,04 1.11 0.39 1.50 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 -0.34% [Actual Return 1.13%] - [Buy Hold Return 1.46%] 192 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 12/31/13 Portfolio Performance 6.0 5.0 4.0 3.0 2.0 1.0 0.0 IL -1.0 INN INN -2.0 In 0 INN -3.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 EM 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. -0.18 -2.46 -2.46 3.19 5.15 4.83 BC Agg -0.14 -2.02 -2.02 3.26 4.44 4.55 Asset Growth(5000) Beginning Market Value 89,637 91,744 91,744 81,482 99,655 74,568 Net Contributions&Withdrawals -3 -13 -13 -65 -65 -65 Gain/Loss+Income -162 -2,259 -2,259 81055 -10,117 14,969 Ending Market Value 89,472 89,472 89,472 89,472 89,472 89,472 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 9.82 Finance 10.30 United States Treas Government 9.28 Government 40.11 United States Treas Government 8.23 Industrials 12.70 FNMA C130-Tba Jan Mortgage 6.56 Mortgage 31.83 United States Treas Government 3.94 Transportation 0.46 FNMA Ci 15-Tba Jan Mortgage 2.97 Utilities 1.89 United States Treas Government 2.11 Municipals 0.00 United States Treas Government 1.87 Foreign 2.04 FNMA Ci 15-Tba Jan Mortgage 1.75 Miscellaneous 0.66 GNMA Ii Sf 30-Tba Mortgage 1.69 193 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 12/31/13 Asset Allocation($000) Domestic Fixed ® Other $100,359 112.17% $23 0.03% Cash&Equiv $-10,909 -12.19% Risk/Return Analysis Periods from 9/04 to 12/13 Alpha 0.02 Beta 1.07 R-Squared 0.92 5.0 4.5 4.0 3.5 b N 3.0 2.5 Q 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 4.83 3.71 0.84 0.24 1 BC Agg 4.55 3.35 0.85 T" 91-Day Treasury Bill 1.72 1.00 0.00 194 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/13 18% 16% 14% 12% 10% 8% ---- 6% ---- ---- ---- 4% ---- __ -1---- -- 0/o ---- -- ° ---- 1--- -2% -1---- -4% -6% -8% -10% 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 3.73 9.60 12.16 9.41 10.84 16.93 9.23 8.46 8.48 7.99 1st Qt 1.24 1.86 4.82 5.82 6.72 8.32 6.55 6.62 6.33 6.07 Median 0.31 -0.66 2.63 4.08 4.98 6.01 5.26 5.44 5.33 5.00 3rd Qt -0.05 -2.00 1.27 3.24 3.97 4.44 4.30 4.74 4.65 4.43 Low -1.44 -8.48 -0.87 1.01 1.21 0.95 1.17 1.94 2.15 2.30 w Western Asset Management Co. Net Ret -0.18 -2.46 1.23 3.19 4.15 5.15 4.94 5.17 5.10 4.84 Rank 83 84 75 77 68 62 59 63 60 58 1 BC Agg Net Ret -0.14 -2.02 1.05 3.26 4.07 4.44 4.58 4.91 4.84 4.57 Rank 80 76 80 74 71 75 67 70 68 71 195 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 35% 30% 25% 20% 15% 5% -�-- -1-- - -- -1-- -�-- ---- == 0% ---- == -5% -- -10% ---- -15% -20% -25% -30% 2013 2012 2011 2010 2009 2008 2007 2006 2005 High 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 1st Qt 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 Median -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 3rd Qt -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 Low -8.48 0.99 0.01 0.69 -1.54 -25.82 2.34 2.13 1.36 w Western Asset Management Co. Net Ret -2.46 5.07 7.23 7.09 9.24 3.92 6.51 4.66 2.77 Rank 84 64 37 52 49 38 50 45 42 1 BC Agg Net Ret -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 76 74 25 63 71 24 40 65 62 196 City of Clearwater Employees Pension Fund December 31, 2013 Performance Comparison Total Returns of Core Fixed income Portfolios 10% 9% 8% 7% 6% 5 4% 3% 2% Mar 11 Dee 10 Sep 10 Jun 10 Mar 10 Dee 13 Sep 13 Jun 13 Mar 13 Dee 12 High 5.56 4.82 6.09 8.71 9.12 1 st Qt 4.38 3.91 4.86 7.07 7.75 Median 3.72 3.48 4.18 6.23 6.93 3rd Qt 3.31 2.99 3.66 5.72 6.37 Low 2.23 2.64 3.19 4.77 5.61 w Western Asset Management Co. Return 3.19 2.88 3.68 5.69 6.46 Rank 77 84 74 77 72 1 BC Agg Return 3.26 2.86 3.51 5.52 6.19 Rank 75 85 82 s0 84 Western Asset Management Co. Value Added Analysis - Net of Fee 4.5% 4.0% 3.5% 3.0% 2.5% 2.3 2.0% 1.5% 1.0% 0.5% 0.2 0.3 0.2 0.2 0.3 O.1 0.1 1 0.0% 0.0 O.0 -0 2 -0.1 -0.1 -0.1 -0.2 -0.5% IM 1.0% -0.8 -1.5% 3/09 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 ® Quarterly Value Added vs.BC Agg ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAahZed) 197 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 3 3 3 3 5 4 12 11 Positive Periods 1 1 9 9 15 16 25 26 Up Market Capture 0.72 1.01 1.14 1.08 Down Market Capture 1.11 1.11 1.02 1.19 Batting Average 0.00 0.42 0.55 0.57 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 4.64 3.82 5.22 4.57 Worst 4 Quarters 2,46 2,02 2,46 2,02 2,46 2,02 2,46 2,02 Best 4 Quarters 2,46 ,02 7.37 7.84 11.40 9.50 14.60 10.56 Standard Deviation 2.52 2.52 2.89 3.07 3.57 3.24 3.71 3.35 Beta 1.01 0.92 1.04 1.07 Alpha (').1.1. 0.04 0.14 0.02 R-Squared 1.00 0.96 0.89 0.92 Sharpe Ratio 1.,01 0,83 1.07 1.03 1.41 1.33 0.84 0.85 Treynor Ratio 2,51. 3.36 4.86 2.90 Tracking Error 0.10 0.65 1.22 1.12 Information Ratio 4,56 0,1.2 0.56 0.24 -j 198 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/13 9.0 ro 8.0 7.0 6.0 � ti w 5.0 • • • • •.• i Median b • r . .• ' Return • N 3.0 • � . • 2.0 • Q 1.0 • • 0.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Western Asset Management Co. 3.19 77 2.89 37 1 BC Agg 3.26 74 3.07 46 Median 4.08 3.18 5 Years Ending 12/31/13 14.0 A 12.0 c 10.0 8.0 O � N • 6.0 . ' '. Median b • t� ; Return N 4.0 s Q 2.0 0.0 -2.0 0.0 0.9 1.8 2.7 3.6 4.5 5.4 6.3 7.2 8.1 9.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Western Asset Management Co. 5.15 62 3.57 41 1 BC Agg 4.44 75 3.24 31 Median 6.01 4.01 199 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 12/13 Portfolio BC Agg Total Number Of Securities 354 8,727 Total Market Value 100,358,723 Yield to Maturity 2.52 2.48 Time to Maturity 14.21 7.58 Current Coupon 3.09 3.34 Duration 5.81 5.57 Effective Convexity 0.28 0.13 Effective Duration 5.26 5.55 Effective Maturity 7.90 7.58 Yield to Maturity Time to Maturity Coupon ii r 0 0 0 0- 1 22.3/0 0- 1 9.8/0 0- 3 45.6/o --- 0 0 0 1 - 2 155 1 - 3 12 3 - 5 310 ii 2 - 3 17.7% 3 - 5 17.2% 5 - 7 20.2% 3 - 4 32.9% 5 - 7 7.1% 7 - 9 2.4% 4- 5 5.8% 7 - 10 8.2% 9 - 11 0.7% 5+ 5.9% 10+ 44.8% 11+ 0.1% Quality Duration Effective Duration 0 GOVT 3 8.1/o 0 0 0- 1 100 0- 1 105 AAA 32.30/(\�� 0 0 a 1 - 3 13.5/0 1 - 3 18.6/0 AA 3.2% A 8.3% 3 -4 14.4% 3 - 4 15.8% BAA 16.1% 4- 6 32.1% 4- 6 32.40/o BA 0.2% 6- 8 14.4% 6- 8 9.0% B 0.0% NR 1.7% 8+ 15.5% 8+ 13.8% 200 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 12/31/13 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 38.37 1.36 --- 0.38 --- --- --- --- 40.11 Treasury 37.28 --- --- --- --- --- --- --- 37.28 Agency 1.09 1.36 --- 0.38 --- --- --- --- 2.83 Corporate 0.58 1.44 8.32 15.34 0.25 0.01 --- 1.01 26.95 Industrial --- 0.36 4.97 7.37 --- --- --- --- 12.70 Utility --- --- 0.47 1.42 --- --- --- --- 1.89 Finance --- 0.69 2.88 5.92 0.25 0.01 --- 0.57 10.32 Yankee 0.58 0.39 --- 0.63 --- --- --- 0.44 2.04 Transportation --- 0.04 --- 0.42 --- --- --- --- 0.46 Mortgage 31.44 0.38 --- --- --- --- --- --- 31.82 GNMA 6.34 --- --- --- --- --- --- --- 6.34 FHLMC 2.42 --- --- --- --- --- --- --- 2.42 FNMA 19.43 --- --- --- --- --- --- --- 19.43 Other Mortgage 3.26 0.38 --- --- --- --- --- --- 3.64 Municipals --- --- --- --- --- --- --- --- --- Cash --- --- --- --- --- Other --- --- --- --- --- --- --- 0.66 0.66 Total 70.39 3.22 8.32 16.14 0.25 0.01 --- 1.67 100.00 201 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 12/13 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 14.02 12.09 1.38 1.18 0.03 0.02 0.05 Government 28.95 40.72 1,98 € ,61 0,39 0.07 0, Industrials 17.25 11.46 1.35 0.75 0.10 0.05 0.15 Mortgage 34.07 30.70 0.02 0,15 0.00 0.06 Transportation 0.59 0.37 1.28 0.20 0.01 0.00 0.01 Utilities 2.48 2.27 2.04 1.12 0.02 0.00 0.03 Municipals 0.00 0.01 0.00 0.03 0.00 0.00 0.00 Foreign 1.89 2.36 0,05 0.18 0,00 0,00 1 Miscellaneous 0.74 0.02 3.19 0.00 0.02 0.02 100.00 100.00 0,08 0,04 0,1.3 0.16 0,02 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 0.03% [Actual Return-0.05%] - [Buy Hold Return-0.08%] 202 City of Clearwater Employees Pension Fund Real Estate Comp as of 12/31/13 Portfolio Performance 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 JflLj1L1d-4 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 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 0.50 5.49 5.49 8.65 15.85 2.96 Policy Index 0.54 6.02 6.02 10.95 17.13 3.70 Asset Growth(5000) Beginning Market Value 80,324 76,997 76,997 62,823 27,416 19,347 Net Contributions&Withdrawals 0 -516 -516 62 -1,938 -1,938 Gain/Loss+Income 405 4,247 4,247 17,844 55,251 63,321 Ending Market Value 80,729 80,729 80,729 80,729 80,729 80,729 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 11.59 Energy 0.00 Prologis Inc Financials 6.72 Materials 0.00 Equity Residential P Financials 6.69 Industrials 0.00 Hcp Inc Financials 4.95 Consumer Discretionary 0.14 Avalonbay Cmntys Inc Financials 4.60 Consumer Staples 0.00 Public Storage Inc Financials 4.55 Health Care 0.00 Host Hotels&Resort Financials 4.30 Financials 99.86 Vornado Rhy Tr Financials 4.19 Information Technology 0.00 Macerich Co Financials 3.99 Telecom Services 0.00 Apartment Invt&Mgm Financials 3.77 Utilities 0.00 203 City of Clearwater Employees Pension Fund Real Estate Comp as of 12/31/13 Asset Allocation($000) Domestic Equity EM $41,755 51.72% Ob ❑ Cash&Equiv $536 0.66% ® Real Estate $38,437 47.61% Risk/Return Analysis Periods from 4/08 to 12/13 Alpha -0.14 Beta 0.99 R-Squared 0.99 4.0 3.5 3.0 $ 2.5 cC � 2.0 1.5 c 1.0 Q 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 2.96 30.47 0.09 -0.22 1 Policy Index 3.70 30.79 0.11 T" 91-Day Treasury Bill 0.29 0.17 0.00 204 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/13 20% 15% � -1---- lo�io 1 5% 1 ---------- 0% PI-1---- -5% -10% -15% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 9.76 17.59 17.83 17.19 18.71 17.52 1st Qt 3.40 13.23 13.16 13.27 14.12 8.72 Median 2.13 8.76 10.35 9.69 10.99 3.47 3rd Qt 0.04 2.71 7.32 6.80 5.15 -0.48 Low -2.78 -8.19 -2.10 -2.98 -4.45 -11.37 R Real Estate Comp Net Ret 0.50 5.49 8.54 8.65 13.74 15.85 Rank 68 61 68 60 29 15 1 Policy Index Net Ret 0.54 6.02 10.62 10.95 14.30 17.13 Rank 67 60 47 40 21 6 205 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% ol 1 20% ----------- ------ ------------ R R R1 --------- 0% ------------ --------- -10 -20% -30% -40% -50% 2013 2012 2011 2010 2009 High 17.59 29.13 24.92 29.86 32.50 1st Qt 13.23 16.89 15.96 18.42 -2.40 Median 8.76 11.24 10.85 13.55 -26.83 3rd Qt 2.71 4.94 2.35 1.40 -31.92 Low -8.19 -6.83 -15.56 -23.74 -47.55 R Real Estate Comp Net Ret 5.49 11.69 8.85 30.51 24.68 Rank 61 45 57 4 12 1 Policy Index Net Ret 6.02 15.41 11.62 24.96 29.20 Rank 60 28 48 11 9 206 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 2 2 4 4 5 5 Positive Periods 3 3 10 10 16 16 17 17 Up Market Capture 0.88 0.83 0.97 0.96 Down Market Capture 0.59 0.97 1.03 0.99 Batting Average 0.50 0.25 0.40 0.41 Worst Quarter 0,42 0,70 8,90 8,94 36,65 33,85 37,93 40.4 0 Best Quarter 4.26 5.85 9.65 11.30 33.98 35.93 33.98 35.93 Worst 4 Quarters 5.52 6.02 5.52 6.02 5.52 6.02 45,35 45,6 Best 4 Quarters 5.52 6.02 20.74 25.41 118.01 115.40 118.01 115.40 Standard Deviation 4.06 5.89 9.24 10.22 28.67 27.94 32.78 32.86 Beta 0.69 0.90 1.02 0.99 Alpha 0.32 0,27 0,31 0,1.4 R-Squared 0.96 0.99 0.99 0.99 Sharpe Ratio 1.34 1.01 0.93 1.06 0.55 0.61 0.16 0.17 Treynor Ratio 7.83 9.56 15.41 5.12 Tracking Error 2.05 1.47 2.79 2.97 Information Ratio 0,28 1,50 0,31 0,22 207 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 12/31/13 23.9 ro 21.1 18.4 15.6 s• 0 12.8 10.0 '' �' ' 1 . • ' Median 7.2 • • •••b�. '. • . . Return . . . 4.3 • Q 1.5 • • • -1.2 • -4.0 0.0 2.2 4.4 6.6 8.8 11.0 13.2 15.4 17.6 19.8 22.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 8.65 60 9.24 54 1 Policy Index 10.95 40 10.22 57 Median 9.69 8.16 5 Years Ending 12/31/13 25.0 ro 20.0 c 15.0 ;�.�•.� . IR • w 10.0 • 0 5.0 • • • . Median � • N 0 •_ ': . ' Return 0. •. • Q -5.0 • • ' -10.0 ' -15.0 • 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 15.85 15 28.67 87 1 Policy Index 17.13 6 27.94 84 Median 3.47 16.39 208 City of Clearwater Employees Pension Fund Security Capital as of 12/31/13 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 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 -1.02 1.60 1.60 8.06 15.67 2.82 Wilshire RESI -0.75 2.15 2.15 9.24 16.81 3.38 Asset Growth(5000) Beginning Market Value 43,680 42,557 42,557 41,879 27,416 19,347 Net Contributions&Withdrawals -944 -945 -945 -9,755 -31,755 -31,755 Gain/Loss+Income -446 677 677 1 10,165 1 46,628 54,698 Ending Market Value 42,289 42,289 42,289 42,289 42,289 42,289 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 11.59 Energy 0.00 Prologis Inc Financials 6.72 Materials 0.00 Equity Residential P Financials 6.69 Industrials 0.00 Hcp Inc Financials 4.95 Consumer Discretionary 0.14 Avalonbay Cmntys Inc Financials 4.60 Consumer Staples 0.00 Public Storage Inc Financials 4.55 Health Care 0.00 Host Hotels&Resort Financials 4.30 Financials 99.86 Vornado Rhy Tr Financials 4.19 Information Technology 0.00 Macerich Co Financials 3.99 Telecom Services 0.00 Apartment Invt&Mgm Financials 3.77 Utilities 0.00 209 City of Clearwater Employees Pension Fund Security Capital as of 12/31/13 Asset Allocation($000) Cash&Equiv $534 1.26% Domestic Equity $41,755 98.74% Risk/Return Analysis Periods from 4/08 to 12/13 Alpha -0.11 Beta 0.99 R-Squared 0.99 3.5 3.0 S 2.5 2.0 b N 1.5 1.0 C Q 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 2.82 32.00 0.08 -0.21 1 Wilshire RESI 3.38 32.28 0.10 T" 91-Day Treasury Bill 0.29 0.17 0.00 210 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/13 20% 15% ------- ------- ------- lo�io 5% - ---------- 0% -i---- -5% -10% -15% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 9.76 17.59 17.83 17.19 18.71 17.52 1st Qt 3.40 13.23 13.16 13.27 14.12 8.72 Median 2.13 8.76 10.35 9.69 10.99 3.47 3rd Qt 0.04 2.71 7.32 6.80 5.15 -0.48 Low -2.78 -8.19 -2.10 -2.98 -4.45 -11.37 s Security Capital Net Ret -1.02 1.60 8.66 8.06 13.52 15.67 Rank 90 83 67 65 31 15 1 Wilshire RESI Net Ret -0.75 2.15 9.58 9.24 13.90 16.81 Rank 88 80 59 58 28 9 211 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% 1 20% ----------- 10% ------------ 1 0% --1------ --------- -10 -20% -30% -40% -50% 2013 2012 2011 2010 2009 High 17.59 29.13 24.92 29.86 32.50 1st Qt 13.23 16.89 15.96 18.42 -2.40 Median 8.76 11.24 10.85 13.55 -26.83 3rd Qt 2.71 4.94 2.35 1.40 -31.92 Low -8.19 -6.83 -15.56 -23.74 -47.55 s Security Capital Net Ret 1.60 16.22 6.86 31.62 24.68 Rank 83 26 64 2 12 1 Wilshire RESI Net Ret 2.15 17.55 8.56 29.12 29.20 Rank 80 22 59 6 9 212 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 5 Years Ending 12/31/13 25.0 ro 20.0 c 15.0 •.-e'� ' 9 • w 10.0 • 0 5.0 • • • . Median N 0.0 .• •_ • Return Q -5.0 . • • -10.0 • -15.0 • 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 15.67 15 30.14 90 1 Wilshire RESI 16.81 9 29.47 89 Median 3.47 16.39 5 Years Ending 12/31/13 25.0 ro 20.0 c 15.0 •. '� • w 10.0 • 0 5.0 • • • . Median � • N 0 •_ ': . ' Return 0. •. • Q -5.0 • • -10.0 • -15.0 • 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 15.67 15 30.14 90 1 Wilshire RESI 16.81 9 29.47 89 Median 3.47 16.39 213 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 12/31/13 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 3 3 5 5 7 7 8 8 Positive Periods 1 1 7 7 13 13 14 14 Up Market Capture 0.90 0.94 0.98 0.97 Down Market Capture 0.97 1.03 1.04 0.99 Batting Average 0.25 0.08 0.25 0.27 Worst Quarter 3,22 2,80 15,51 15,08 36,65 33,85 37,93 40.4 0 Best Quarter 6.67 7.41 14.90 15.40 33.98 35.93 33.98 35.93 Worst 4 Quarters 1.60 2.15 1.60 2.15 0.35 1.76 45,35 45,6 Best 4 Quarters 1.60 2.15 30.83 32.40 118.01 115.40 118.01 115.40 Standard Deviation 8.59 9.22 15.31 15.39 30.14 29.47 33.97 34.07 Beta 0.92 0.99 1.02 0.99 Alpha (),I() 0,26 0,28 (),I I R-Squared 0.98 1.00 0.99 0.99 Sharpe Ratio 0.18 0.23 0.52 0.59 0.52 0.57 0.14 0.16 Treynor Ratio 1.65 8.02 15.24 4.95 Tracking Error 1.36 0.79 2.27 2.54 Information Ratio 0,44 1.41 0,32 0,21 -j 214 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 12/31/13 Portfolio Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.01 1 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 EM 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 3.17 11.83 11.83 9.78 10.55 NCREIF ODCE 3.17 13.94 13.94 13.61 14.19 Asset Growth($000) Beginning Market Value 26,859 24,778 24,778 20,944 0 Net Contributions&Withdrawals 0 0 0 0 20,000 Gain/Loss+Income 851 2,932 2,932 6,766 7,710 Ending Market Value 27,710 27,710 27,710 27,710 27,710 215 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 12/31/13 Asset Allocation($000) Cash&Equiv $2 0.01% Real Estate $27,707 99.99% Risk/Return Analysis Periods from 9/10 to 12/13 Alpha -0.75 Beta 0.98 R-Squared 0.73 16.0 14.0 12.0 10.0 C4 8.0 b N 6.0 4.0 Q 2.0 0.0 -2.0 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Multi Employer Property 10.55 2.48 4.21 -2.31 1 NCREIF ODCE 14.19 1.62 8.69 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 12/13 20% 18% 16% 14% M 10% 8% M ----------- 6% ----------- 4% 2% -o------- 0°i° ----------- -2°i° -4% -6% -8% -10% Last Last Last 2 Last 3 Qtr Year Years Years High 9.76 17.59 17.83 17.19 1st Qt 3.40 13.23 13.16 13.27 Median 2.13 8.76 10.35 9.69 3rd Qt 0.04 2.71 7.32 6.80 Low -2.78 -8.19 -2.10 -2.98 M Multi Employer Property Trust Net Ret 3.17 11.83 8.21 9.78 Rank 31 34 70 49 O NCREIF ODCE Fund Index Net Ret 3.17 13.94 12.43 13.61 Rank 31 19 30 21 217 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 35% 30% 25% 20% 15 ----------- ---4------ 10% 5% --------- ----------- ----------- 0 -5% -10% -15% -20% 2013 2012 2011 High 17.59 29.13 24.92 1st Qt 13.23 16.89 15.96 Median 8.76 11.24 10.85 3rd Qt 2.71 4.94 2.35 Low -8.19 -6.83 -15.56 M Multi Employer Property Trust Net Ret 11.83 4.70 12.99 Rank 34 77 42 O NCREIF ODCE Fund Index Net Ret 13.94 10.94 15.99 Rank 19 52 24 218 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 12/31/13 Portfolio Performance 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 YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 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 11.63 11.63 3.97 NCREIF Timberland Index 5.92 9.68 9.68 6.98 Asset Growth($000) Beginning Market Value 6,420 6,205 6,205 111 Net Contributions&Withdrawals 944 453 453 6,520 Gain/Loss+Income 0 707 707 733 Ending Market Value 7,364 7,364 7,364 7,364 219 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 12/31/13 Asset Allocation($000) Real Estate im $7,364 100.00% is Risk/Return Analysis(Number of returns<12) Periods from 6/11 to 12/13 Alpha N/A Beta N/A R-Squared N/A 8.0 7.0 6.0 5.0 C4 4.0 b N 3.0 2.0 Q 1.0 0.0 1.0 ILI I I I I I I I -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 3.97 5.57 0.70 -0.41 1 NCREIF Timberland Index 6.98 5.22 1.32 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 12/13 20% 18% 16% 14% ol ----------- 12% M M 10% ----------- 1 8% 1 6% 1 ---1------- 4% ----------- 2% ----------- 0% ----------- -2% ----------- -4 -6% -8% -10% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 9.76 13.45 15.25 17.59 1st Qt 3.40 7.35 10.55 13.23 Median 2.13 4.96 7.07 8.76 3rd Qt 0.04 1.09 -0.94 2.71 Low -2.78 -5.19 -5.91 -8.19 M Molpus Woodlands Group Net Ret 0.00 3.38 11.50 11.63 Rank 76 59 16 35 1 NCREIF Timberland Index Net Ret 5.92 7.03 8.03 9.68 Rank 10 28 45 46 221 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 35% 30% 25% 20% 15% ----------- ----------- 10% 1 1 5% ----------- 0% -5% -10% 2013 2012 High 17.59 29.13 1st Qt 13.23 16.89 Median 8.76 11.24 3rd Qt 2.71 4.94 Low -8.19 -6.83 M Molpus Woodlands Group Net Ret 11.63 0.77 Rank 35 86 1 NCREIF Timberland Index Net Ret 9.68 7.75 Rank 46 67 222 City of Clearwater Employees Pension Fund Hancock as of 12/31/13 Portfolio Performance 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 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 -2.67 -2.67 3.01 NCREIF Timberland Index 5.92 9.68 9.68 10.88 Asset Growth($000) Beginning Market Value 3,366 3,458 3,458 1,263 Net Contributions&Withdrawals 0 -23 -23 1,938 Gain/Loss+Income 0 -69 -69 164 Ending Market Value 3,366 3,366 3,366 3,366 223 City of Clearwater Employees Pension Fund Hancock as of 12/31/13 Asset Allocation($000) Real Estate im $3,366 100.00% Risk/Return Analysis(Number of returns<12) Periods from 6/12 to 12/13 Alpha N/A Beta N/A R-Squared N/A 12.0 11.0 10.0 9.0 8.0 7.0 6.0 ab 5.0 N 4.0 M c 3.0 Q 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio H Hancock 3.01 6.91 0.42 -1.32 1 NCREIF Timberland Index 10.88 6.36 1.70 T" 91-Day Treasury Bill 0.10 0.02 0.00 224 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/13 20% 18% 16% 14% ol 12% ----------- 10% ----------- 1 8% 1 6% 1 ---1------- 4 ----------- 2% ----------- 0% -----------H EL-2% --------- -4 -6% -8% -10% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 9.76 13.45 15.25 17.59 1st Qt 3.40 7.35 10.55 13.23 Median 2.13 4.96 7.07 8.76 3rd Qt 0.04 1.09 -0.94 2.71 Low -2.78 -5.19 -5.91 -8.19 H Hancock Net Ret 0.00 -0.33 -0.64 -2.67 Rank 76 80 73 92 1 NCREIF Timberland Index Net Ret 5.92 7.03 8.03 9.68 Rank 10 28 45 46 225 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 20% 18% 16% 14% ----------- 12% 10% 1 8% 6% 4% 2% ----------- 0 -2% -4% -6% -8% -10% 2013 High 17.59 I st Qt 13.23 Median 8.76 3rd Qt 2.71 Low -8.19 H Hancock Net Ret -2.67 Rank 92 1 NCREIF Timberland Index Net Ret 9.68 Rank 46 226 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