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EMPLOYEES PENSION PLAN PERFORMANCE REVIEW - MARCH 31, 2014 CAPTRUST INSIGHT INDEFIENIDENCE INTEGRITY CITY OF CLEARWATER EMPLOYEES' PENSION PLAN PERFORMANCE REVIEW MARCH 31, 2014 Eric W. Bailey, CFA John J. Griffith Managing Principal Senior Investment Consultant 102 W.Whiting Street,Suite 400,Tampa,FL 33602-5140 ♦ Tel: 813/218-5000 A T ST INDEFIENIDENCE INTEGRITY TABLE OF CONTENTS Important Disclaimer Information I 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 CAPTRUST INSIGHT INn.° EFIENID NCF INTEGRITY 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 CAPITAL MARKETS REVIEW MARCH 31, 2014 CAPTRUS oNSIG HT uuvDEwErvuENcE NTEGRITY Index QTR YTD 1 Yr 3 Yr 5 Yr 10 Yr, Domestic Fixed Income 3 month T-Bill 0.01% 0.01% 0.07% 0.08% 0.12% 1.65% Barclays Capital 1-3 year Gov't 0.14% 0.14% 0.39% 0.84% 1.21% 2.57% Barclays Capital Interm Gov't 0.64% 0.64% -0.76% 2.35% 2.35% 3.58% Barclays Capital Interm Credit 1.63% 1.63% 0.98% 4.60% 7.63% 4.75% Barclays Capital Interm Govt/Cred 1.00% 1.00% -0.13% 3.13% 4.18% 3.94% Barclays Capital Aggregate Bond 1.84% 1.84% -0.10% 3.75% 4.80% 4.46% Domestic Equity Standard & Poor's 500 1.81% 1.81% 21.86% 14.66% 21.16% 7.42% Dow Jones Industrial Average -0.15% -0.15% 15.66% 13.05% 19.85% 7.47% Wilshire 5000 Total Market 2.04% 2.04% 22.42% 14.43% 21.74% 7.91% Wilshire US REIT 10.13% 10.13% 4.42% 10.52% 29.24% 8.19% Russell 1000 Growth - Large Cap 1.12% 1.12% 23.22% 14.62% 21.68% 7.86% Russell 1000 Value - Large Cap 3.02% 3.02% 21.57% 14.80% 21.75% 7.58% Russell Midcap Growth 2.04% 2.04% 24.22% 13.52% 24.73% 9.47% Russell Midcap Value 5.22% 5.22% 22.95% 15.17% 26.35% 10.24% Russell 2000 Growth - Small Cap 0.48% 0.48% 27.19% 13.61% 25.24% 8.87% Russell 2000 Value - Small Cap 1.78% 1.78% 22.65% 12.74% 23.33% 8.07% International Equity MSCI EAFE 0.77% 0.77% 18.06% 7.72% 16.56% 7.01% MSCI World 1.40% 1.40% 19.72% 10.86% 18.94% 7.42% MSCI EM -0.37% -0.37% -1.07% -2.54% 14.83% 10.45% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg 1.83% 1.83% 6.49% 7.02% 9.71% 5.35% 40% S&P 500 / 60% Barclays Agg 1.83% 1.83% 8.69% 8.11% 11.34% 5.64% 50% S&P 500 / 50% Barclays Agg 1.83% 1.83% 10.88% 9.20% 12.98% 5.94% 60% S&P 500 / 40% Barclays Agg 1.82% 1.82% 13.08% 10.29% 14.61% 6.24% 70% S&P 500 / 30% Barclays Agg 1.82% 1.82% 15.27% 11.38% 16.25% 6.53% 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS oNSIG HT uuvDEwErvuENcE NTEGRITY Capital Markets Overview U.S. Markets Domestic markets got off to a lackluster start after a strong finish to 2013. Weak employment data provided a reason for early profit taking, and continuing concerns over China's weakening economy was used to validate the selling in overseas markets. Disappointing economic numbers released in February were attributed to the unusually bad winter weather. Investors appeared to shrug off these disappointments and focused instead on earnings reports which were better than expected. Year-over-year earnings growth was 9.6%, versus an expected growth rate of 7.6%, as reported by Bloomberg. February was a turnaround month for the quarter. The equity markets moved higher in March, but not without trepidation and volatility. Improved economic news from the U.S. was offset by poor economic news from China. Russia revisited the Cold War era in Ukraine. The U.S. and European Union (EU) condemned Russia's invasion and promised tough sanctions, albeit against the region's largest supplier of natural gas. New Fed Chair Janet Yellen revisited the `foreseeable future' posture on interest rates, indicating rates will remain at the current levels for a "considerable time". Investors took that to mean the Fed would continue its accommodative stance into 2015. The S&P 500 Index (S&P 500) ended up 1.8% for the first quarter. The quarterly gain was the fifth straight for the benchmark index. At its high, the S&P 500 was up as much as 178% from its 2009 lows. Eight of the 10 S&P 500 sectors posted positive returns with defensive groups leading the advancers. The Nasdaq Composite (NASDAQ) also increased for the fifth consecutive quarter. The Composite lost 2.5% in March, but still managed to post a 0.8% gain for the quarter. The Dow Jones Industrial Average (DJIA)posted a modest gain in March that was not enough to offset earlier in the quarter losses. The DJIA finished down 0.2%. International Markets European markets were mostly higher for the quarter. Russia's interference with Ukrainian politics created tension between Russia, the U.S., and EU. The uncertainty over what sanctions would ultimately be imposed on Russia, and what Russia's reaction to those sanctions might be made investors nervous. Germany, the economic leader of the EU, managed to post its seventh consecutive quarterly gain. The DAX Index gained just 0.69% for the quarter,but is up more than 23% for the trailing year-over-year period. It was a volatile quarter for markets in the Pacific Rim. Losses were widespread in January, partially rebounded in February, and finished mixed in March. The problems in China now seem like old news. Economic growth and manufacturing output have stalled, and credit has tightened. The Shanghai Composite Index lost 3.9% for the first quarter. Emerging markets sold off earlier in the quarter and then rebounded sharply in March trimming the quarterly loss for the MSCI Emerging Markets Index to 0.5%. Stocks benefited from investor's willingness to accept additional risks. Brazil attracted investors this quarter as optimism increased over a potential change in government from October's presidential election. Brazil's Bovespa Index gained more than 7% in March to trim its first quarter loss to 2.12%. 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 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS oNSIG HT uuvr7EwErvuENcE NTEGRITY Capital Markets Overview U.S. Debt Market U.S. Treasuries rallied in January and then traded a much smaller gain in February for an offsetting loss in March. Comments by Fed Chair Janet Yellen signaled more of the same accommodative policy that put pressure on shorter terms rates. Although the economy is showing signs of improving, the pace is still slow enough not to warrant an increase in the short-term rate anytime in the near future. The yield on the 10-year Treasury closed at 2.75%, down from 3.02% at the start of the quarter. The 30-year bond closed the quarter at 3.59%. The yield spread between the 5- and 30-year bonds closed at its narrowest point since 2009. Commodities Although commodities, in general, were down during the first quarter, the Reuters/Jefferies CRB Index posted a gain of 8.7%. The overall gain is attributable to nickel's largest quarterly advance in four years. Nickel rallied amid fears that supplies would be constricted due to potential economic sanctions against Russia. Norilsk Nickel is the world's largest nickel producer, and has key production plants in Russia. Slow growth in China contributed to copper's decline. Copper lost nearly 6% in January and more than 5% in March. Gold rallied to a 6-month high in March before pulling back. Strength is the U.S. dollar and a surge in physical buying were credited for the increase. Gold finished up 6.8% for the first quarter. Domestic markets stumbled in early January before recovering as the current bull market reached 5 years old ➢ A rough start to 2014 saw the major indices decline 6% by early February from a late-December high. ➢ Value outperformed Growth stocks in the first quarter as investors moved toward more defensive positions. ➢ The Russell Midcap Value was the big winner for the quarter as midcaps outperformed the larger and smaller capitalizations. First Quarter 5 Year Buff Market Return Domestic Equity Returns 300 292.18 Value Growth � o 210 °0 3.0 2.1 1.1 5.2 3.5 2.0 � o °0 1.8 1.1 0.5 I'l.r2009 De 2009 DY c20]0 DY c20]1 Dc 2012 giar2014 C� -_ MIA S&P 1_00 --_Russell 3000 NASDAQ Composite -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,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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS oNSIG HT iuvDEwErvuENcE NTEGRITY The script flipped in the first quarter as one of 2013's biggest sector laggards led the quarter while last year's winning sector was the first quarter's worst ➢ Nine of the 10 sectors of the S&P 500 had a positive return for the first quarter, led by Utilities which had a return greater than 3%in each of the first 3 months of the year. ➢ Electronics retailers suffered the most this quarter as Best Buy and Staples were the worst performers on the S&P 500. S&P 500 First Quarter 2014 Sector Returns �11111111111JJ111111J11J111JI1111111111111J11J1,111JJ1JJ1JJJ1JJ11JJ11J111JJ1J111JJJJJJJ 10.09 Utilities �111�1J1)IJ�11JJ1J1JJJJJJ JJJJJJJJJJJJJJJ,', 5.81 Health Care JI�IIJIJIIIII��IJI 2.86 Materials Illllll1111JJJJJ�jI 2°61 Financials l lllllllll 2.28 Information Technology 1.81 S&P 500 Jlll0,.79 Energy Jl0.50 Consunner Staples l0.47 Telecommunications 0.14 Industrials -2,80 Consurner"Discretionary S&P 500 Home Entertainment Software 26.46% FRX Forest Laboratories Inc. 55.44% S&P 500 Airlines 26.06% GMCR Keurig Green Mountain Inc. 45.31% S&P 500 Consumer Electronics 25.41% NBR Nabors Industries Ltd 45.14% S&P 500 Aluminum 21.40% HAR Harman International Industries 32.34% S&P 500 Distillers &Vintners 20.79% DAL Delta Airlines 30.14% S&P 500 Computers &Electronics Retail -27.31% BBY Best Buy Co Inc. -33.85% S&P 500 Home Furnishing Retail -14.32% SPLS Staples Inc. -28.07% S&P 500 Specialty Stores -13.58% ADT The ADT Corp -24.73% S&P 500 Personal Products -11.98% IGT International Game Technology -22.58% S&P 500 Diversified Metals &Mining -11.61% KSU Kansas City Southern -16.72% 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS oNSIG HT uwDEwr Nur roc NTEGRITY Developing a pot hole or two in the road to recovery ➢ Eurozone inflation dropped to 0.5%in March, the lowest level since late 2009 and far below the ECB's target of 2%. The MSCI Europe ex-U.K. gained 3.7% in the first quarter with help from some of the problem "children" (lagging countries) of the last few years. Equity valuations are now in the upper range of their historical average and credit growth is making it difficult to accelerate economic growth. ➢ The Russia-Ukraine conflict will likely weigh on the Eurozone performance until it is resolved. The European Union spent $156.5 billion on Russian oil and gas in 2012; Germany alone imports 36% of its natural gas from Russia. The European Union spent roughly 38 times what the U.S. paid for Russian energy in the same year. ➢ The yen appreciated more than 3% since the beginning of the year and the consumption value-added tax increased from 5% to 8% as well. In February, Bank of Japan's Governor Haruhiko Kuroda withheld a¥60 trillion ($538M USD) QE move as the fiscal tightening continues this year to reach the Bank of Japan's target inflation rate of 2%. The MSCI Japan is down -5.5%in the first quarter after finishing up 27.3% in 2013. European Unemployment seasonally adjusted(OECD estimates as of 12/31/2013) ° Greece Itivv � �.....,.. .,.,.. 2 .3.6 1Q14 2013 Spain MKINIMMMMMMENREIM 25.6% Country/Region Local USD Local USD Portugal „x,a„� ,,a,a„ 15.3% Regions/Broad Indexes Italy I („ 13.0° USA (S&P 500) - 1.8 - 32.4 Ireland IIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIII.III IIIIIIIIIIIIIIIIIIIIIIIIIII 11.9% .........................�Y, EAFE -0.2 0.8 27.5 23.3 EuroArea uuil lllMMUMu�llt 11.9% Europe ex-U.K. 3.5 3.7 24.2 28.7 eF111 European Union 1u1@u1@u1@'lM 10.6% Pacific ex-Japan 0.6 3.0 16.5 5.6 France luuVUUllu 10.4% Emerging Markets -0.5 -0.4 3.8 -2.3 Belgium IMMMEM 8.5% MSCI:Selected Countries Finland IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 4 0/6 United Kingdom -1.5 -0.8 18.5 20.7 Sweden .1% France 2.9 3.0 22.1 27.7 Netherlands II IIIIIIIIIIIIIIIIIIIIIIII 7.3% Germany -0.3 -0.3 26.7 32.4 U.K. IMIM10 7.2% Japan -7.4 -5.5 54.8 27.3 Denmark INMEW, 70% China -5.8 -5.9 4.0 4.0 India 4.4 8.2 8.6 -3.8 Germany P"lll S.156 Brazil -1.6 2.9 -3.0 -15.8 Austria 111111111 IIIIIIIIIIIIIIIIII 4.8 Russia -9.7 -14.4 7.5 1.4 Norway IVIV 3.6°x6 Returns are reported gross 0.0% 10.01/16 20.01/16 30.00/6 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.,Invesco 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 CAPITAL MARKETS REVIEW — MARCH 31, 2014 CAPTRUS DINSIGHT MuvDEwErvuENcE NTEGRITY Emerging Markets trying to Rock the Vote ➢ With China continuing the Third Plenum, which laid out the reform blueprint for the fall, it continues to fight its increasing debt which reached 215% of GDP at the end of 2012. It's also battling the fact that its exports had their largest drop since February of 2009, the weakest factory production since 2009, the slowest pace of retail sales since 2004, and fixed asset growth at its slowest pace in 13 years. All these factors are reflected in the MSCI China-5.9%return for the first quarter of 2014. ➢ The I.M.F. is preparing an $1813 loan package over two years for Ukraine. The country's energy subsidies represent 8% of GDP and the country owes the Russian energy company Gazprom over $113. The emergency presidential elections will be on May 25, though the interim prime minister warned of a possible GDP drop of 10% this year. ➢ India will hold national elections in May after holding state elections in December. MSCI India Index was up 8.2%in the first quarter of 2014 after finishing the year down -3.8%in 2013. ➢ Indonesia has 1.51 billion people, almost 50% of the Asia Pacific ex-Japan population, and will be holding their legislative elections in April and a presidential election in July. CycllcaIlly Adjusted Price-to Earnings (CAPE) Katie 15. Ma 1+ ........................................................ 3' 1" 11.E 12 41 . . .?....... ....... ...... m .5 10 L........' m ur is _. ErVSsMa Chi'Ina E'raaiM ThaMMandll Taliwwaln Korea SO U t h Mexico hndonesIa Mindia Africa ouuuu Corr al P/E 0 10 year Historkal Avg.P/E 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,Invesco 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. 8 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS �NSIG HT uwDEwErvuENcE NTEGRITY Continuation of current QE policy keeps pressure U.S. 10-Year Treasury Yield on yields 3.10% ➢ The 10-year note declined to a low of 2.6% as 3.00% last quarter's volatility eased into a more stable 2.90% first quarter. The 2 0 Fed continues to scale back its �, 2x0% bond buying program. � 2.60% ➢ The 10-year Note ended the quarter down 30 2.50% 2.40% basis points, yielding 2.75%. .. .... .... , , .... ..... 2.30% 0 0 0 0 0 0 0 0 0 0 0 0 0 ➢ Bonds moved lower as the interest rate curve flattened and the bond market started to see an increase in stability. 00 a - u' 4.005 ➢ In March the Fed signaled that it would no voo„ longer keep the federal funds rate tied to the � 2.00% � target unemployment rate of 6.5%. ,00% 0.00°0 Bonds make slight gains across credit quality and 3 M 6MO 2 Y 5YR 10 YR 30YR ^ aa^:Y III IJJA A 1. ^^,111,11/1111 °°°°11/11/2111 1111,/R1 Ia sectors ➢ Fixed income markets were mixed this quarter. 0 20.00% - 0AAA Returns ranged from 3.62% for the lowest 1 .00 0 0101l AA investment grade debt (BBB) to 1.12% for AAA 0 X0.00% [0A a paper. Returns for BB rated bonds was the only 5.00% sector to decline from last uarter returning q g � 0 00� .... 3.11% a loss of 0.05%. 1Q14 rr0 1 YR 3 YR s YR ➢ By sector, high yield debt gained 2.99%, U.S.Corporate Debt followed by corporate debt, up 2.94%. Mortgage and government debt were up 1.58% and 1.32% respectively for the quarter. 10.013% . a 8.013% C E 6.00% `o y 4.00% a 2.00% w 0.00% 2.00% ...... 1Q14 YTD 1 YR 3 YR 5 YR 10 YR *Barclays U.S.Government Index n Barclays U.S.Investment Grade Bond Index 0 Barclays U.S.Mortgage-Backed Securities Index 0 BofA U.S.Cash Pay High yield Index 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 Securitires,LLC,Zephyr StyleAdvisor,Barclays, U.S.Dept.of the Treasury 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 CAPTRUS oNSIG HT uuvDEwErvuENcE NTEGRITY Commodities ➢ Gold rebounded during the first quarter. Gains were attributed to strength in the U.S. dollar and physical buying. Gold was up 6.8% for the quarter. ➢ Copper continued its downward trend. The metal remains under pressure as slow growth persists in China, the world's largest consumer of copper. Copper lost more than 10% for the quarter. ➢ Oil ended the first quarter higher as extended cold weather drained distillate fuel supplies. DJ UBS Commodity Index 155 150 145 140 135 130 125 120 N N N N N N M M M M M M M M M M M M c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I 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 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ I, 00 Ol O -A N .--I N M 4 Lf1 lD I, 00 01 O -A N .--I N M c-I c-I c-I c-I c-I c-I Commodities Current 3 Months Ago 1 Year Ago 3/31/2014 12/31/2013 3/31/2013 Gold (per Troy ounce) $1,284.40 $1,202.30 $1,594.80 Oil (per barrel) $101.21 $98.42 $97.23 Copper (per pound) $3.04 $3.40 $3.46 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 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 CAPITAL MARKETS REVIEW — MARCH 31, 2014 CAPITAL MARKET INDEX RETURNS CAPTRUS1 NIDEPENDENCE INTEGRITY 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Russell IIIIIIIIi"m�Pl Rus0 e l l 1000 Value Value 35.18% Ip�,p�-�p�i"is 1 4 aaa pap a II��'hIlia IidMr�an�a'I 1 Vl�ll a l,�� .. V��U 1II 1 1 Ia�I'aI II�aoIMI��1a�o. ��iu�UNry�a�wui� 4 I l aa�aa a a II�I��I��IIIV�I�9Ili�a IiMr�V:�a rI,10 Bl�a"ml�ll�al1��i� ��U pW pnR NaR�Vu.)rp,N(�N...�II��. � p�pp w I�I�a,a ma�l ��4�IIIIII�iIIhp�a psap a w �4��U a aalNr a�@I a � �I9'IuVIIM6fl�Y1�I,1 1a��11�1U1�1 N,8.35% 0B ES 1 , I RIuI.°I.uI.a^ a sa ea`l l 1000 33S Value 00 3157°l3753A Sp&p s 50O d "4 0a�a.aaamma a m°i l I�V��IIIII IU III��'�uaMN��PIN�al�N°@'I I M ..� 17.51% r a R-sell a , R f ^,, .., , , , R 1000 oo o Value Value 22,94%22,44/ 7.05% -36.85% 2.��p p S&p a a s RI000 IN RI000 RI000 RIOOO I RIO ue l � R0 se IM Ru�sell ' � p"p a � � RI000 S0O S00S00 w Value Value Value Value Value k Value Value FI �Va�ill Value 21.64% 15.63% 2104°10' 7.01% -5.59% -1552/ (1� 1 1649% 22.25% 3T,00°�a i°�"I 2A1a11 I`(�@�p�dl 1 32.53% VI 111111111 U Russell ,^.� Russell °cm� 026,46% Russell RussellSte' S&P Ste' Ste' Ste' fi Ste'1000 1000 aaa 1000 1000 Value 4 a Spp S0O S0O S00 S00 Spp S0O S00 Value 4 m Value Value 30.03% 4.911% 137501' 5.49%I ' 15.51% 0.39% 1600 °7.35% -9,10"/0 a °� % 32,34/0 1,81°10 a`amaV �amal a`amau �u��a H ppI aaa aama� Rosel aama� aaa 5 aaau MEN' 'S00 S00 S00 S00 Value m�0 7°10 -0.17% w °' a 1.51.06°1m., 4` u� m ��U� r „ Russell 1000 IU V pIU 500 2 4 a p 19.69%867/ 4 ° b V II ,ml i .,a� iii .,.m III IIII ^:cl �Illlllyl�� aaa aaa aaa lulla uNN�ki1°i� a s t4�1°uN'i a a a WORS 1 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 RELATIVE PERFORMANCE OF KEY INDICES CAPTRUS1 NDEPENDENCE NTEGRITY 60 Domestic Equity STS. Fixed Income Domestic Equity Outperforming Black Monday-Oct'87 40 Asian Crisis 20 0 c - we c cs fl) Ct h ch we Cs ca o r e co ca rs as as c N c^x c c c Cs w o o o cC C ca ca ca ra c� ca ea ca ca ca ca c� c� ca ca r� e� ca � ca c� ca -20 --- -- ----------------- -40 Invasion of Iraq Aug 82-17JIA 776 Fixed Income Outperforming -60 Domestic Equity vs.Fixed Income Mean 1 Standard Deviation 2 Standard Deviations 60 Domestic Equity vs. Foreign Equity Domestic Equity Outperforming 40 20 n /%-#% I M' ' In, I I A' , 0 wo— e ea a ra c-4,-.a -20 42 Q "W `S }1 a� ., mmm I� �yrvxWry a.w mmxv�m {uw� a yyy �. Iwrow www .pmt .�yYWq mmnF""k'4M�^ ww.w �rvxWry ^ rvurvF'i+u�Wa.''w'wGr�t wwµ fin:"yw'wy4wJU wvxr -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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 RELATIVE PERFORMANCE OF KEY INDICES CAPTRUS1 NDEPENDENCE NTEGRITY 40 = Large Cap �. xa11 Cap Large Cap Outperforming +� 20 W A r� I A 0 4 f2 ;t u5 `r^s C`- ✓? C+ 47 M, ct u'7, k:? CD C� 9 It t- 00 C Vq W 1, 17S JJ 4J �? f/J JJ oo C3 C Cs Cs 01 Cs Ct CN CX C7 43 C7 f7 f7 4 0 1-1 -20 ca �,, c7 ca c� ca ca ca ra c� ca ca ca ra c� ca ra c� ca ca r� ca r t ca ca ca —+ 40 Small Cap Outperform ing , Large Cap vs.Small Cap Mean 1 Standard Deviation 2 Standard Deviations 60 Large Value v�.Large Growth Value Outperforming 40 20 0 AA ft t u a c c cn r «a C ca r �r na ca rs crs as a rs a C c c —20 y' Y arom w4+nMi^"WW*�+{�%} �' ^m�'^ �m^�°1�*F^m�,' P'��}^^.".M m�W"f�+M m'mrt mma�¢4 ma+@�raM+n(rl4�uW metre ry�T mm'mm..y.yyw�'w ry�m+n mammy mb mum FN:+mmm�fn+�rv.M�"f mmmmMarom mM m�'MQQ�Net mmmm mmmly arom mq�ud anmi -40 -60 Growth Outperforming Large Value vs.Large Growth 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. 13 CAPITAL MARKETS REVIEW - MARCH 31, 2014 RELATIVE PERFORMANCE OF KEY INDICES CAPTRUS1 NDEPENDENCE NTEGRITY 60 Small Value vg. Small Gro Value Outperforming 40 20 0 acs a cv 'cc o 3 C� cco a Ct C�r Ct Cr ca C=o n � 00 Ct ca cw t c t c� Ca ct cq V�83 SA c Ca Ca C Ca -20 I : I 1 1 I f:- GG C`w CQ C 4 x-1 N '3" tYS 'o L 00 0+ G�7. s-f e�} M g, :'n 'g r- CQ C ClJ CrJ '. ? 4X} CQ 4X} 00 00 00 � C C. C C C C L`a4 C C C !� {� C� w.n'aw: m ,+ �� m» '.wro""Y"'�...%�. � wa,., w„'aw' ,mw ,a.» ,ar�' mmwFrm�w^�rc.' ...r�+ m�� ,�ww-+aCa� i K`7 C3 N C7 C7 C3 CI N N i C� N',, C7 N C` N S`3 C3 CI C3 0 t. N . N . . e7 N 5-1 -40 -60 Grow di, Outperforming Small Value vs.Small Growth Mean 1 Standard Deviation ^^ll 2 Standard Deviations 80 DomestiC Equity STS.,REIT Domestic Equity Outperforming 60 40 — "N� I . A 20 0 nA A' c� l� 1 00 a, t- as � c� 0 C c C cx c C Cs o ev — ,rq I 1 1 I I I l I 1 I 1 I 1 I I 1 I f I I I Y L I r{ 1010, '? � a? 00 ti N Cs '1*` C' C`- 51 C, 5�5 "f+' iPS- �? CR a� c4 ED', cis Gx' Cs C' C GY � C}, O c3 47 c3 ,w ate..?�M ,.M daw-+wm„�mmwM.m�., a� .. .mom., .Ma�..m� �'m .,++M +. 'mroq.. arom" .,m 'mm ,m� +�wM`«�,+ -40 ca ca °C r t ca ca c C ca Ca r, c C� ry ca cI Ca ev Cam Ca ca ca Ca c cv ca -60 -80 R;EZT 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 RELATIVE PERFORMANCE OF KEY INDICES CAPTRUS1 NDEPENDENCE NTEGRITY 120 100 Fixed Income v�..REIT Fixed Incas Outperforming 80 60 40 20 0 4 SA y �-1 F t a<14 VOW <14 a r #, -20 m-1 ` .c.o c7 ti -40 -60 -� w:ca 4. ct ca ev cw' c� c� ca ca ca c c� ca ca c� c� ca ca ''ca c� 'c� ca ca - - ca - ra -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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 GENERAL DISCLOSURE STATEMENT CAPTRUS1 NDEPENDENCE NTEGRITY 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 www.weIlsfargoadvisors.com/gotoresearchdisclosures 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 GENERAL DISCLOSURE STATEMENT CAPTRUS1 NDEPENDENCE NTEGRITY 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 CAPITAL MARKETS REVIEW - MARCH 31, 2014 GENERAL DISCLOSURE STATEMENT CAPTRUS1 NDEPENDENCE NTEGRITY 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 3/31/14 Market Manager Value Actual% Policy% Voya Investment Mgmt 126,791,799.51 14.78 NTGI-QM R1000V 45,855,081.61 5.34 Eagle Capital Management 43,368,047.88 5.05 Manning and Napier 40,745,506.62 4.75 Artisan Partners 52,910,193.03 6.17 Wedge Capital Mgmt 55,511,627.40 6.47 Atlanta Capital Mgmt 17,236,438.09 2.01 Systematic Financial Mgt 18,646,922.89 2.17 Riverbridge Partners 34,292,387.65 4.00 Total Domestic Equity 435,358,004.68 50.74 42.00 Earnest Partners 45,391,019.70 5.29 WHV 36,917,500.52 4.30 Eaton Vance Mgmt 38,699,596.73 4.51 Total International Equity 121,008,116.95 14.10 18.00 Dodge&Cox 117,995,958.62 13.75 Western Asset Management Co. 91,466,874.40 10.66 Security Lending Income Account 264,460.44 0.03 In House Account 5,274,729.79 0.61 Total Domestic Fixed Income 215,002,023.25 25.06 30.00 Multi Employer Property Trust 28,506,135.01 3.32 Security Capital 46,773,569.39 5.45 Molpus Woodlands Group 7,578,746.00 0.88 Hancock 3,766,042.00 0.44 Total Real Estate 86,624,492.40 10.10 10.00 Total Fund 857,992,637.28 100.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 12/31/13 - 3/31/14 Beginning Net Invest Invest Ending Manager Name Value Contrib Fees Gain/Loss Value Voya Investment Mgmt 126,820,734 1.11'3 0 27.321 126,791,800 NTGI-QM R1000V 44,511,230 0 0 1,343,851 45,855,082 Eagle Capital Management 42,630,070 252 0 738,230 43,368,048 Manning and Napier 39,968,988 6'33 0 777,157 40,745,507 Artisan Partners 51,470,707 777 0 1,440,263 52,910,193 Wedge Capital Mgmt 53,543,667 533 0 1,968,494 55,511,627 Atlanta Capital Mgmt 17,403,506 373 0 166,744 17,236,438 Systematic Financial Mgt 17,870,423 135 0 776,645 18,646,923 Riverbridge Partners 34,624,105 352 0 1.'365 34,292,388 Equity 428,843,430 4,31[.35 0 6,518,710 435,358,005 Earnest Partners 45,417,864 180 0 23,664 45,391,020 WHV 36,136,197 673 0 781,976 36,917,501 Eaton Vance Mgmt 38,359,195 0 0 340,402 38,699,597 International EQ Comp 119,913,256 3,315.3 0 1,098,714 121,008,117 Dodge&Cox 115,334,487 333. 0 2,662,464 117,995,959 Western Asset Management Co. 89,472,484 2313 0 1,994,639 91,466,874 Security Lending Income Account 133,479 127,259 0 3,722 264,460 In House Account 4,399,987 874,743 0 0 5,274,730 Fixed Income Comp 209,340,436 1,000,762 0 4,660,825 215,002,023 Multi Employer Property Trust 27,709,718 0 0 796,417 28,506,135 Security Capital 42,289,036 196 0 4,484,729 46,773,569 Molpus Woodlands Group 7,578,746 0 0 0 7,578,746 Hancock 3,766,042 0 0 0 3,766,042 Real Estate Comp 81,343,543 196 0 5,281,146 86,624,492 Total Fund 839,440,664 992,577 0 17,559,396 857,992,637 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending March 31, 2014 Net of Fee Return Value Periods Ending 3/31/14 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Total Fund 857,993 2.07 13.48 9.34 17.56 7.00 7.59 6.16 9.47 12/31/87 Policylndex 2.36 11.14 9.20 16.43 5.67 7.51 6.65 9.57 12131187 Domestic Equity Comp 435,358 1.52 23.14 14.80 23.73 8.08 8.82 6.31 11.46 12/31/87 S&P 500 1.80 21.86 14.65 21.15 6.31 7.42 4.46 10.47 12131187 Large Cap Equity Comp 256,760 1.12 20.84 13.51 20.66 6.66 7.52 4.64 10.48 3/31/88 R1000 2.06 22.44 14.75 21.73 6.57 7.80 4.93 10.51 3131188 Eagle Capital Management 43,368 1.73 24.38 25.61 1/31/13 Russell 1000 Value 3.02 21.58 23.74 1131113 Manning and Napier 40,746 1.94 17.19 19.49 1/31/13 Russell 1000 Value 3.02 21.58 23.74 1131113 NTGI-QM R1000V 45,855 3.02 21.63 14.65 21.81 4.29 6/30/07 RIOOOV 3.02 21.58 14.80 21.75 4.22 6130107 Voya Investment Mgmt 126,792 0 02 20.58 14.88 20.77 9.00 9.03 5.74 11.66 12/31/87 RIOOOG 1.12 23.23 14.63 21.68 8.23 7.87 2.98 9.91 12131187 Mid Cap Equity Comp 108,422 3.25 25.69 16.82 28.16 10.45 10.55 9.42 13.04 3/31/88 RMid Cap 3.53 23.51 14.37 25.55 7.70 10.05 9.50 12.08 3131188 Artisan Partners 52,910 2.80 31.26 17.15 27.91 13.04 12.62 10.77 7/31/01 RMid Cap G 2.05 24.23 13.52 24.73 8.24 9.47 7.97 7131101 Wedge Capital Mgmt 55,512 3.68 20.08 16.28 28.27 9.05 9.14 2/28/07 R Mid Cap V 5.21 22.94 15.16 26.35 6.84 6.93 2128107 Small Cap Equity Comp 70,176 0.40 27.85 16.41 26.33 8.97 10.07 10.89 8/31/03 R2000 1.12 24.90 13.19 24.31 7.08 8.53 9.87 8131103 Atlanta Capital Mgmt 17,236 0 96 26.09 16.90 25.68 12.99 13.09 13.39 8/31/03 Russell 2000 1.12 24.90 13.42 23.77 5.72 8.27 9.92 8131103 Riverbridge Partners 34,292 0 96 26.63 16.94 22.46 9/30/10 R2000G 0.48 2719 13.60 19.68 9130110 Systematic Financial Mgt 18,647 4.35 31.88 14.92 27.94 7.86 9.29 10.50 8/31/03 R2000V 1.78 22.64 12.73 23.32 5.44 8.07 9.73 8131103 International EQ Comp 121,008 0.92 9.12 2.47 16.99 1.98 7.09 5.96 5/31/01 MSCI SAFE 0.77 18.06 7.72 16.56 1.78 7.01 6.08 5131101 Earnest Partners 45,391 0 0 13.13 5.52 20.07 4.46 4/30/08 MSCI SAFE 0.77 18.06 7.72 16.56 1.57 4130108 Eaton Vance Mgmt 38,700 0.89 2.09 0.93 16.42 0.69 4/30/08 MSCI Emg Mkts 0.3� J 0W ,!4 14.83 0.,30 4130108 WHV 36,918 2.16 12.35 3.41 17.44 1.98 4/30/08 MSCI SAFE 0.77 18.06 7.72 16.56 1.57 4130108 Fixed Income Comp 215,002 2.21 1.20 4.31 6.72 5.74 5.09 5.45 6.66 12/31/87 BCAgg 1.84 0.10 3.75 4.80 4.96 4.46 5.40 6.87 12131187 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending March 31, 2014 Net of Fee Return Value Periods Ending 3/31/14 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Dodge&Cox 117,996 2.31 2.32 4.87 7.62 6.09 5.40 5.42 2/29/04 BCAgg 1.84 0.10 3.75 4.80 4.96 4.46 4.50 2129104 In House Account 5,275 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 0.06 0.09 0.81 1.56 2.15 3.58 12131187 Security Lending Income Account 264 1.94 4.20 4.75 10.33 8.30 6.80 6.39 6/30/03 3-month T-Bill 0.01 0.05 0.06 0.09 0.81 1.56 1.52 6130103 Western Asset Management Co. 91,467 2.23 0 0 3.78 5.62 5.26 4.94 9/30/04 BCAgg 1.84 0.10 3.75 4.80 4.96 4.63 9130104 Real Estate Comp 86,624 6.49 8.58 9.29 28.73 4.07 4/30/08 Policylndex 7.52 7.70 11.56 29.09 4.82 4130108 Hancock 3,766 0.00 11.19 9.08 5/31/12 NCREIF Timberland Index 1.62 9.78 10.29 5131112 Molpus Woodlands Group 7,579 0.00 15.03 4.78 6/30/11 NCREIF Timberland Index 1.62 9.78 6.95 6130111 Multi Employer Property Trust 28,506 2.87 12.79 9.67 10.66 9/30/10 NCREIF ODCE 2.52 13.76 13.06 13.92 9130110 Security Capital 46,774 10.60 5.34 9.42 29.30 4.46 4/30/08 Wilshire REST 9.99 4.61 10.38 29.31 4.91 4130108 22 City of Clearwater Employees Pension Fund Executive Summary Table March 31, 2014 Net of Fee Return Value Calendar Years Name $(000) YTD 2013 2012 2011 2010 2009 Total Fund 857,993 2.07 17.83 13.93 0,36 17.73 30.28 Policylndex 2.36 14.62 13.17 1.81 13.96 26.00 Domestic Equity Comp 435,358 1.52 35.15 18.37 0,211 22.53 32.14 S&P 500 1.80 32.41 15.98 2.12 15.05 26.45 Large Cap Equity Comp 256,760 1.12 32.23 17.02 0,90 16.87 24.59 R1000 2.06 33.11 16.42 1.51 16.10 28.42 Eagle Capital Management 43,368 1.73 Russell 1000 Value 3.02 Manning and Napier 40,746 1.94 Russell 1000 Value 3.02 NTGI-QM RIOOOV 45,855 3.02 32.94 18.09 0 77 15.75 20.35 RIOOOV 3.02 32.54 17.50 0.39 15.51 19.69 Voya Investment Mgmt 126,792 0.02 31.57 18.95 3.04 17.10 24.43 RIOOOG 1.12 33.49 15.26 2.63 16.72 37.21 Mid Cap Equity Comp 108,422 3.25 37.36 22.00 0,110 28.03 45.33 RMid Cap 3.53 34.76 1726 1.86 25.49 40.47 Artisan Partners 52,910 2.80 39.21 20.82 0.07 33.15 51.38 RMid Cap G 2.05 35.76 15.80 1.66 26.39 46.30 Wedge Capital Mgmt 55,512 3.68 34.92 23.16 0.33 23.30 38.51 R Mid Cap V 5.21 33.45 18.48 j-')8 24.76 34.20 Small Cap Equity Comp 70,176 0.40 42.51 17.61 2.07 29.27 33.51 R2000 1.12 38.82 16.34 6.1% 26.85 2719 Atlanta Capital Mgmt 17,236 0 96 42.43 12.53 10.20 25.98 26.83 Russell 2000 1.12 37.88 18.05 5:50 24.51 20.57 Riverbridge Partners 34,292 0 96 43.50 17.83 4.27 R2000G 0.48 43.29 14.59 .9 Systematic Financial Mgt 18,647 4.35 40.72 23.50 9.91 35.50 35.72 R2000V 1.78 34.50 18.05 5:50 24.51 20.57 International EQ Comp 121,008 0.92 10.23 17.61 15,0 ffi 18.37 57.93 MSCI SAFE 0.77 23.29 17.90 11 7J, 8.21 32.46 Earnest Partners 45,391 0 0, 15.81 17.18 6 88 16.61 55.54 MSCI SAFE 0.77 23.29 17.90 11 7J, 8.21 32.46 Eaton Vance Mgmt 38,700 0.89 1.22 18.55 19.27 23.33 67.01 MSCIEmgMkts 0.07 .%'7 18.62 18.17 19.19 79.02 WHV 36,918 2.16 14.10 16.97 116,1 17.58 55.98 MSCI SAFE 0.77 23.29 17.90 11.7.1 8.21 32.46 Fixed Income Comp 215,002 2.21 0'"15 6.53 5.94 7.37 12.37 BC Agg 1.84 .0 4.22 7.84 6.54 5.93 23 City of Clearwater Employees Pension Fund Executive Summary Table March 31, 2014 Net of Fee Return Value Calendar Years Name $(000) YTD 2013 2012 2011 2010 2009 Dodge&Cox 117,996 2.31 0.65 7.85 5.10 7.53 14.53 BC Agg 1.84 .0 4.22 7.84 6.54 5.93 In House Account 5,275 0.00 0.00 (?.00 0.00 0.00 0.00 3-month T-Bill 0.01 0.05 0.07 0.08 0.13 0.16 Security Lending Income Account 264 1.94 2.56 6.93 2.85 21.70 17.48 3-month T-Bill 0.01 0.05 0.07 0.08 0.13 0.16 Western Asset Management Co. 91,467 2.23 2.16 5.07 7.23 7.09 9.24 BC Agg 1.84 .0 4.22 7.84 6.54 5.93 Real Estate Comp 86,624 6.49 6.29 11.69 8.85 30.51 24.68 Policylndex 7.52 6.02 15.41 11.62 24.96 29.20 Hancock 3,766 0.00 8.91 NCREIF Timberland Index 1.62 9.68 Molpus Woodlands Group 7,579 0.00 15.16 0.77 NCREIF Timberland Index 1.62 9.68 7.75 Multi Employer Property Trust 28,506 2.87 11.83 4.70 12.99 NCREIF ODCE 2.52 13.94 10.94 15.99 Security Capital 46,774 10.60 1.60 16.22 6.86 31.62 24.68 Wilshire REST 9.99 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 3/14 18% 16% 1 14% --- --- 12% -- --- 10% 1-- -- 8% --- --- 1 1 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 2.93 15.74 13.29 10.46 11.66 16.89 7.95 7.02 7.48 8.17 8.16 1st Qt 2.28 14.40 12.38 9.63 10.57 15.02 6.91 5.98 6.54 7.17 7.21 Median 1.88 12.57 11.18 8.84 10.06 13.66 6.29 5.43 6.04 6.66 6.65 3rd Qt 1.52 10.93 10.26 7.81 8.91 12.67 5.58 4.90 5.50 6.24 6.18 Low 0.82 4.22 5.88 5.68 6.23 8.52 3.90 3.72 4.58 5.25 5.35 T Total Fund Net Ret 2.07 13.48 11.97 9.34 11.24 17.56 8.44 7.00 7.20 7.92 7.59 Rank 35 37 34 34 11 3 1 5 7 9 11 1 Policy Index Net Ret 2.36 11.14 10.52 9.20 10.29 16.43 6.69 5.67 6.55 7.51 7.51 Rank 20 70 69 40 39 9 31 38 24 15 12 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% 10% --- --- --- 5% --- --- 0% -5% -10% -15% -20% -25% -30% 3-- -35 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 2.93 22.01 15.01 5.13 16.38 27.82 -0.27 11.17 16.44 10.63 14.30 1st Qt 2.28 19.03 13.61 2.30 14.02 21.87 -20.32 9.16 14.71 8.40 12.09 Median 1.88 16.18 12.46 1.09 12.67 18.82 -24.77 7.93 12.96 7.00 10.58 3rd Qt 1.52 14.00 11.25 -0.04 11.19 14.98 -27.22 6.61 10.63 5.46 8.73 Low 0.82 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 2.07 17.83 13.93 -0.36 17.73 30.28 -27.10 7.20 11.76 6.71 9.90 Rank 35 35 19 78 2 2 73 63 62 53 61 1 Policy Index Net Ret 2.36 14.62 13.17 1.81 13.96 26.00 -27.73 6.69 16.59 8.25 13.48 Rank 20 69 32 33 27 7 79 73 4 28 8 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2014 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 2.07 2.07 13.48 9.34 17.57 9.47 12/31/87 $857,992,637 Policy Index 2.36 2.36 11.14 9.20 16.43 9.57 Rank 35 35 37 34 3 Voya Investment Mgmt 0 02 6 .02 20.58 14.88 20.77 11.66 12/31/87 $126,791,800 RIOOOG 1.12 1.12 23.23 14.63 21.68 9.91 Rank 67 67 79 37 61 NTGI-QM RIOOOV 3.02 3.02 21.63 14.65 21.81 4.29 6/30/07 $45,855,082 R1000V 3.02 3.02 21.58 14.80 21.75 4.22 Rank 31 ' 31 56 64 49 Eagle Capital Management 1.73 1.73 24.38 25.61 1/31/13 $43,368,048 Russell 1000 Value 3.02 3.02 21.58 23.74 Rank 80 80 31 Manning and Napier 1.94 1.94 17.19 19.49 1/31/13 $40,745,507 Russell 1000 Value 3.02 3.02 21.58 23.74 Rank 71 71 89 Artisan Partners 2.80 2.80 31.26 17.15 27.91 10.77 7/31/01 $52,910,193 R Mid Cap G 2.05 2.05 24.23 13.52 24.73 7.97 Rank 28 28 3 14 13 Wedge Capital Mgmt 3.68 3.68 20.08 16.28 28-.27 9.14 2/28/07 $55,511,627 R Mid Cap V 5.21 5.21 22.94 15.16 26.35 6.93 Rank 40 40 75 30 13 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2014 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Atlanta Capital Mgmt 0 96 0 96 26.09 16.90! 25:68 13.39 8/31/03 $17,236,438 Russell 2000 1.12 1.12 24.90 13.42 23.77 9.92 Rank 95 95 46 10' 49 Systematic Financial Mgt 4.35 4.35 31.88 14.92 27:94 10.50 8/31/03 $18,646,923 R2000V 1.78 1.78 22.64 12.73 23.32 9.73 Rank 5 5 16 48 34 Riverbridge Partners 0 96 0 96 26.63 16.94, 22.46 9/30/10 $34,292,388 R2000G 0.48 0.48 27.19 13.60 19.68 Rank 77 77 57 26 Earnest Partners 0 05 0 05 13.13 5.52 20.07 4.46 4/30/08 $45,391,020 MSCI EAFE 0.77 0.77 18.06 7.72 16.56 1.57 Rank 70 70 59 66 23 WHV 2.16 2.16 12.35 3.41 17.44 1.98 4/30/08 $36,917,501 MSCI EAFE 0.77 0.77 18.06 7.72 16.56 1.57 Rank 24 24 65 77 51 Eaton Vance Mgmt 0.89 0.89 2.09 0,98 16:56 0.79 4/30/08 $38,699,597 MSCI Emg Mkts 037 037 1.337 7 54 14.83 0 33 Rank 30 30 29 55 49 Dodge&Cox 2.31 2.31 2.32 4.87 7:62 5.42 2/29/04 $117,995,959 BC Agg 1.84 1.84 0 10 3.75 4.80 4.50 Rank 28 28 23 36' 30 Western Asset Management Co. 2.23 2.23 -0,05 3.78; 5:62 4.94 9/30/04 $91,466,874 BC Agg 1.84 1.84 0 10 3.75 4.80 4.63 Rank 30 30 68 62 55 Security Lending Income Account 1.94 1.94 4.20 4.75 10`90 6.65 6/30/03 $264,460 3-month T-Bill 0.01 0.01 0.05 0.06 0.09 1.52 In House Account 0.00 0.00 0.00 33.3333 33.3333 0.70 12/31/87 $5,274,730 3-month T-Bill 0.01 0.01 0.05 0.06 0.09 3.58 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund March 31, 2014 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Multi Employer Property Trust 2.87 2.87 12.79 9.67 10.66 9/30/10 $28,506,135 NCREIF ODCE 2.52 2.52 13.76 13.06 13.92 Rank 53 53 29 57 Security Capital 10.60 10.60 5.34 9.42 29.30 4.46 4/30/08 $46,773,569 Wilshire RESI 9.99 9.99 4.61 10.38 29.31 4.91 Rank 5 5 63 59 1 Molpus Woodlands Group 0.00 0.00 15.03 4.78 6/30/11 $7,578,746 NCREIF Timberland Index 1.62 1.62 9.78 6.95 Rank 88 88 13 Hancock 0.00 0.00 11.69 9.22 5/31/12 $3,766,042 NCREIF Timberland Index 1.62 1.62 9.78 10.29 Rank 88 88 37 29 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 3/31/14 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 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 1.52 1.52 23.14 14.80 23.73 8.82 11.46 S&P 500 1.80 1.80 21.86 14.65 21.15 7.42 10.47 Asset Growth(5000) Beginning Market Value 428,843 428,843 366,668 307,500 160,001 277,905 32,236 Net Contributions&Withdrawals -4 -4 -14,016 -23,723 -28,856 -28,856 -28,856 Gain/Loss+Income 6,519 6,519 82,706 151,581 304,213 186,309 431,978 Ending Market Value 435,358 435,358 435,358 435,358 435,358 435,358 435,358 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Microsoft Corp Information Technology 2.26 Energy 6.14 Apple Inc Information Technology 1.87 Materials 4.02 Oracle Corp Information Technology 1.67 Industrials 14.41 Google Inc Information Technology 1.55 Consumer Discretionary 18.07 Pepsico Inc Consumer Staples 1.29 Consumer Staples 8.78 Home Depot Inc Consumer Discretionary 1.11 Health Care 14.25 Gilead Sciences Inc Health Care 0.91 Financials 11.45 Delphi Automotive Pl Consumer Discretionary 0.87 Information Technology 21.31 Comcast Corp New Consumer Discretionary 0.82 Telecom Services 0.19 Boeing Co Industrials 0.81 Utilities 1.38 Holdings and allocations only include SMA accounts. 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 3/31/14 Asset Allocation($000) Cash&Equiv $9,106 2.09% Domestic Equity $426,252 97.91% Risk/Return Analysis Periods from 12/87 to 3/14 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 11.46 17.69 0.44 0.24 1 S&P 500 10.47 15.76 0.43 T" 91-Day Treasury Bill 3.72 1.27 0.00 Holdings and allocations only include SMA accounts. 31 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% 25% 20% - 15% --- -- -- 10% --- 3-- --- --- -1--- 3- 5% -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 4.91 32.34 24.68 17.99 20.98 29.58 14.94 12.10 11.60 12.61 12.39 1st Qt 2.71 26.15 21.04 15.55 17.14 25.22 11.77 9.04 9.18 10.38 10.26 Median 1.80 22.55 18.42 14.45 15.57 22.30 9.76 7.56 7.84 8.73 8.72 3rd Qt 0.75 20.01 16.33 12.60 14.36 20.95 8.38 6.32 6.97 7.64 7.69 Low -1.89 5.01 5.40 4.23 6.86 12.66 4.92 3.95 5.25 6.05 6.25 Domestic Equity Comp Net Ret 1.52 23.14 19.14 14.80 16.79 23.73 10.59 8.08 7.98 9.15 8.82 Rank 57 44 43 35 30 38 39 42 47 44 47 1 S&P 500 Net Ret 1.80 21.86 17.84 14.65 14.90 21.15 8.33 6.31 6.98 7.50 7.42 Rank 50 59 58 43 65 70 77 75 74 82 86 32 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% --- 20% -- --- 10% --- - 0% -- LV --- -10% --- -20% -30% -40% --- -50 -60% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.91 45.47 22.65 8.04 33.10 54.28 -16.83 22.29 23.13 16.04 25.46 1st Qt 2.71 37.98 17.93 2.16 25.24 37.05 -33.45 10.35 17.58 10.54 18.30 Median 1.80 33.31 15.94 -0.13 17.01 28.94 -37.00 5.42 14.82 7.08 13.09 3rd Qt 0.75 30.03 12.26 -4.13 13.78 24.29 -40.97 0.40 10.21 4.74 10.25 Low -1.89 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 1.52 35.15 18.37 -0.21 22.53 32.14 -37.76 7.18 13.01 8.12 13.18 Rank 57 38 21 50 32 40 57 36 63 42 49 1 S&P 500 Net Ret 1.80 32.41 15.98 2.12 15.05 26.45 -36.99 5.52 15.81 4.89 10.87 Rank 50 60 49 27 66 65 49 47 39 72 69 33 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 3 3 4 32 29 Positive Periods 4 4 10 9 17 16 73 76 Up Market Capture 1.06 1.05 1.10 1.08 Down Market Capture 1.12 1.00 1.05 Batting Average 0.25 0.50 0.65 0.54 Worst Quarter 1.52 1.80 1 6,27 1 3,86 1 6,27 13,86 23,59 21,93 Best Quarter 9.15 10.52 14.43 12.58 18.14 15.93 22.08 21.32 Worst 4 Quarters 23.14 21.86 2.19 5.44 0,21. 1.15 37,76 38,07 Best 4 Quarters 23.14 21.86 35.15 32.41 55.86 49.75 55.86 49.75 Standard Deviation 7.99 7.75 16.69 15.16 17.23 16.07 17.69 15.76 Beta 0.95 1.08 1.06 1.09 Alpha 0.53 0,21. 0.29 0.14 R-Squared 0.84 0.97 0.98 0.94 Sharpe Ratio 2.89 2.81 0.88 0.96 1.37 1.31 0.44 0.43 Treynor Ratio 24.25 13.59 22.28 7.12 Tracking Error 4.11 3.14 2.86 4.68 Information Ratio 0.26 0.11 0.83 0.24 -j 34 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 3/31/14 22.0 ro 20.5 19.0 17.5 S 0 16.0 • • � • • • • • • • • ��• • • �• Median 14.5 � • • a • • • • . • • ' Return N 13.0 • . . • .• •� •.t 11.5 Q 10.0 •� • 8.5 • 7.0 6.0 8.4 10.8 13.2 15.6 18.0 20.4 22.8 25.2 27.6 30.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp 14.80 35 16.69 45 S Standard&Poors 500 14.65 43 15.16 21 Median 14.45 17.33 5 Years Ending 3/31/14 31.9 ro 30.1 28.3 • 26.5 �• • 0 24.7 • • � � • � •.yam • • 22.9 • . • . • Median 21.1 .g { '! • Return 19.4 •� • Q • 17.6 15.8 ' • 14.0 ' 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 E Domestic Equity Comp 23.73 38 17.23 42 S Standard&Poors 500 21.15 70 16.07 20 Median 22.30 18.17 35 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 3/31/14 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 3/31/88 Large Cap Equity Comp R1000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/88 Large Cap Equity Comp 1.12 1.12 20.84 13.51 20.66 7.52 10.48 R1000 2.06 2.06 22.44 14.75 21.73 7.80 10.51 Asset Growth(5000) Beginning Market Value 253,931 253,931 212,492 172,438 74,693 146,314 18,032 Net Contributions&Withdrawals -2 -2 -8 1,302 35,172 35,172 35,172 Gain/Loss+Income 2,831 2,831 44,276 83,020 146,896 75,275 203,556 Ending Market Value 256,760 256,760 256,760 256,760 256,760 256,760 256,760 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Microsoft Corp Information Technology 4.14 Energy 7.22 Apple Inc Information Technology 3.43 Materials 4.55 Oracle Corp Information Technology 3.05 Industrials 10.60 Google Inc Information Technology 2.84 Consumer Discretionary 17.88 Pepsico Inc Consumer Staples 2.36 Consumer Staples 14.09 Home Depot Inc Consumer Discretionary 2.04 Health Care 13.85 Gilead Sciences Inc Health Care 1.67 Financials 8.29 Comcast Corp New Consumer Discretionary 1.50 Information Technology 23.28 Boeing Co Industrials 1.49 Telecom Services 0.24 Berkshire Hathaway I Financials 1.46 Utilities 0.02 Holdings and allocations only include SMA accounts. 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 3/31/14 Asset Allocation($000) Cash&Equiv $3,147 1.23% Domestic Equity $253,613 98.77% Risk/Return Analysis Periods from 3/88 to 3/14 Alpha 0.03 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 10.48 16.23 0.42 -0.02 1 R1000 10.51 16.21 0.42 T" 91-Day Treasury Bill 3.69 1.27 0.00 Holdings and allocations only include SMA accounts. 37 City of Clearwater Employees Pension Fund Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 28% 26% 24% 22% -- 20% L --- 18% -- 16 14% -- "' 12% 10% 8% - -- 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 3.51 26.96 21.94 17.10 16.94 24.47 11.43 9.07 9.59 9.98 9.87 1st Qt 2.43 22.99 18.63 15.30 15.63 22.11 9.26 7.33 7.75 8.13 8.23 Median 1.88 22.05 18.05 14.69 14.98 21.27 8.70 6.54 7.22 7.72 7.60 3rd Qt 1.74 21.72 17.70 14.48 14.72 21.03 8.35 6.31 6.99 7.51 7.44 Low 0.75 17.75 15.69 9.80 11.98 19.05 7.04 5.10 5.69 6.42 6.22 L Large Cap Equity Comp Net Ret 1.12 20.84 17.15 13.51 14.40 20.66 8.11 6.66 6.77 7.61 7.52 Rank 89 84 81 85 80 79 85 42 82 58 58 1 R1000 Net Ret 2.06 22.44 18.36 14.75 15.24 21.73 8.71 6.57 7.21 7.86 7.80 Rank 30 37 39 40 41 36 49 48 50 44 44 38 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% ---20 0% 6E0 - -10% -20% -30% -40% -- -50 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 3.51 38.31 22.74 6.19 21.67 40.91 -27.25 10.79 20.80 11.88 19.91 1st Qt 2.43 33.55 17.03 2.47 16.86 31.92 -34.95 6.52 17.97 9.07 14.21 Median 1.88 32.45 16.06 1.91 15.19 27.14 -36.82 5.55 15.81 5.83 11.37 3rd Qt 1.74 31.87 14.79 0.76 14.50 26.43 -37.54 4.65 15.21 4.89 10.84 Low 0.75 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 1.12 32.23 17.02 -0.90 16.87 24.59 -35.23 7.76 11.52 8.63 11.24 Rank 89 69 25 81 24 88 26 14 94 27 54 1 R1000 Net Ret 2.06 33.11 16.42 1.51 16.10 28.42 -37.60 5.77 15.46 6.27 11.39 Rank 30 34 37 60 32 42 77 39 72 42 48 39 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 2 4 3 32 28 Positive Periods 4 4 9 10 16 17 72 76 Up Market Capture 0.93 0.97 0.97 0.99 Down Market Capture 1.08 1.04 0.98 Batting Average 0.25 0.25 0.45 0.50 Worst Quarter 1.12 2.06 15,13 14,68 15,13 14,68 20,96 22.4 Best Quarter 9.85 10.23 14.01 12.90 16.91 16.49 20.12 21.88 Worst 4 Quarters 20.84 22.44 2.13 4.38 0,90 0.91 37,57 38,26 Best 4 Quarters 20.84 22.44 32.23 33.11 49.31 51.57 49.31 51.57 Standard Deviation 8.08 7.51 16.03 15.64 16.56 16.52 16.23 16.21 Beta 1.02 1.02 1.00 0.98 Alpha 0,42 0,34 0,21 0.03 R-Squared 0.98 0.99 0.99 0.96 Sharpe Ratio 2.57 2.98 0.84 0.94 1.24 1.31 0.42 0.42 Treynor Ratio 20.46 13.19 20.63 6.92 Tracking Error 1.20 1.58 1.78 3.06 Information Ratio 1,13 0,68 0,52 0,02 -j 40 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios 3 Years Ending 3/31/14 19.0 ro 18.0 c 17.0 • • • 16.0 •� • • 15.0 >: . Median 7a N 14.0 '. Return • M Q 13.0 •. 1 12.0 • 11.0 12.5 13.15 13.8 14.45 15.1 15.75 16.4 17.05 17.7 18.35 19.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 13.51 85 16.03 72 1 R1000 14.75 40 15.64 58 Median 14.69 15.59 5 Years Ending 3/31/14 25.9 ro 25.0 24.1 23.2 .. 0 22.3 • ~; 21.4 ♦.•� Median 20.5 Return 19.6 . • • 18.8 • • 17.9 17.0 13.0 13.65 14.3 14.95 15.6 16.25 16.9 17.55 18.2 18.85 19.5 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 20.66 79 16.56 62 1 R1000 21.73 36 16.52 59 Median 21.27 16.27 41 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 3/31/14 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 12/31/87 Voya Investment Mgmt R1000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 Voya Investment Mgmt -0.02 -0.02 20.58 14.88 20.77 9.03 11.66 R1000G 1.12 1.12 23.23 14.63 21.68 7.87 9.91 Asset Growth(5000) Beginning Market Value 126,821 126,821 105,152 95,162 38,786 48,251 17,469 Net Contributions&Withdrawals -1 -1 -4 -13,009 10,378 10,378 10,378 Gain/Loss+Income -28 -28 21,644 44,639 77,628 68,163 98,945 Ending Market Value 126,792 126,792 126,792 126,792 126,792 126,792 126,792 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Apple Inc Information Technology 4.76 Energy 5.31 Microsoft Corp Information Technology 3.56 Materials 4.49 Google Inc Information Technology 3.54 Industrials 12.49 Gilead Sciences Inc Health Care 2.76 Consumer Discretionary 22.93 Home Depot Inc Consumer Discretionary 2.69 Consumer Staples 10.46 Comcast Corp New Consumer Discretionary 2.47 Health Care 12.77 Oracle Corp Information Technology 2.35 Financials 4.47 E M C Corp Mass Information Technology 2.35 Information Technology 27.07 Pepsico Inc Consumer Staples 2.24 Telecom Services 0.00 Union Pac Corp Industrials 2.24 Utilities 0.00 42 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,040 0.82% Domestic Equity $125,751 99.18% Risk/Return Analysis Periods from 12/87 to 3/14 Alpha 0.60 Beta 0.85 R-Squared 0.93 12.0 11.0 1 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 Voya Investment Mgmt 11.66 16.26 0.49 0.21 1 R1000G 9.91 18.48 0.34 T" 91-Day Treasury Bill 3.72 1.27 0.00 43 City of Clearwater Employees Pension Fund Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% 25% --- 20% -- --- 15% --- --- -- 10% 5% 0% -1-- -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 4.57 33.94 22.88 20.58 22.53 30.64 16.01 13.47 11.48 12.55 11.59 1st Qt 1.21 26.77 18.87 16.02 16.43 22.54 10.72 9.35 9.14 10.04 9.89 Median 0.50 23.53 16.84 14.39 15.40 21.35 9.65 8.27 8.31 8.82 8.37 3rd Qt -0.29 21.95 14.95 12.91 14.49 20.29 8.49 7.43 7.42 8.20 7.98 Low -1.47 15.70 12.10 10.61 12.25 18.16 6.94 5.99 6.14 7.26 7.06 i Voya Investment Mgmt Net Ret -0.02 20.58 15.63 14.88 15.69 20.77 9.61 9.00 8.32 9.33 9.03 Rank 67 79 72 37 41 61 51 32 48 37 41 1 R1000G Net Ret 1.12 23.23 16.47 14.63 15.52 21.68 9.81 8.23 8.09 8.64 7.87 Rank 31 56 58 44 46 44 47 53 57 58 84 44 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% - --- --- --- -10% --- -20% -30% -40% -- -50% --- -60% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.57 44.45 23.91 9.45 27.34 70.57 -28.77 25.02 27.25 14.94 21.39 1st Qt 1.21 37.24 18.42 3.08 19.10 42.05 -35.21 20.09 13.75 11.40 14.88 Median 0.50 33.75 15.79 0.67 17.08 35.27 -38.68 13.39 9.47 8.55 11.42 3rd Qt -0.29 31.49 14.10 -1.77 13.70 29.76 -41.97 9.34 6.30 5.55 7.87 Low -1.47 25.20 11.48 -7.21 9.47 23.01 -48.87 4.19 -5.06 3.48 4.83 i Voya Investment Mgmt Net Ret -0.02 31.57 18.95 3.04 17.10 24.43 -33.18 17.10 7.14 12.02 10.27 Rank 67 73 19 26 49 92 15 37 69 24 61 1 R1000G Net Ret 1.12 33.49 15.26 2.63 16.72 37.21 -38.43 11.82 9.09 5.27 6.30 Rank 31 53 58 33 56 39 48 58 58 81 83 45 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Large Growth Portfolios 22% 21% 20% 19% 18% 17% i 1 16% 15 i 1 14% 13% �__1______ 12% 1 1 10% 9% Jun I I Mar I I Dee 10 Sep 10 Jun 10 Mar 14 Dee 13 Scp 13 Jun 13 Mar 13 High 17.57 19.60 19.44 21.14 14.95 I st Qt 1 5.74 17.89 17.73 1 8.99 13.37 Median 14.35 16.43 16.67 18.15 12.39 3rd Qt 13.00 15.10 15.56 16.92 1 1.39 Low 11.57 13.06 13.33 15.50 9.66 i Voya Investinent Mgmt Net Ret 14.88 17.27 17.58 1 9.21 14.11 Rank 35 33 29 20 12 1 R 1000 Net Ret 14.63 1 6.45 1 6.94 1 8.68 13.06 Rank 43 48 42 34 34 Voya Investment Mgmt Value Added Analysis - Net of Fee 3.0% 2.0% 2.0 1.7 1.0% 0.6 0.7 0.5 0.6 N 11 0.3 0.2 0.0% EM S�, t I M= O.1 O.1 -0.4 -0.4 0.3 -1.0% qO -/ 0.9 1.1 2.0% -3.0% -4.0% -5.0% 109 9/09 12/09 3/10 110 9/10 12/10 3/11 111 9/11 12/11 3/12 112 9/12 12/12 3/13 113 9/13 12/13 3/14 ® Quarterly Value Added vs.RI OOOG ® Cumulative Value Added - 2 Yr Rolling Avg(AillnAahZed) 46 City of Clearwater Employees Pension Fund Risk Measure Summary Voya Investment Mgmt Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 4 3 5 4 31 33 Positive Periods 3 4 8 9 15 16 74 72 Up Market Capture 0.89 1.02 0.96 0.95 Down Market Capture 1.01 0.99 0.79 Batting Average 0.25 0.42 0.45 0.52 Worst Quarter 0,02 1.12 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 20.58 23.23 6.94 5.77 3.04 2.63 33,74 45,64 Best 4 Quarters 20.58 23.23 32.37 33.49 43.38 49.75 44.38 49.75 Standard Deviation 10.10 9.10 16.10 15.48 16.05 16.45 16.26 18.48 Beta 1.04 1.03 0.96 0.85 Alpha 0,77 0,04 0.01 0.60 R-Squared 0.99 0.98 0.97 0.93 Sharpe Ratio 2.03 2.54 0.92 0.94 1.29 1.31 0.49 0.34 Treynor Ratio 19.72 14.35 21.55 9.40 Tracking Error 1.17 2.12 3.11 5.24 Information Ratio 1,88 0.13 0,29 0.21 -j 47 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios 3 Years Ending 3/31/14 22.0 ro 20.5 19.0 c 17.5 • 0 16.0 • • • 14.5 3P • Median d •• •' • piw Return N 13.0 ti• 1 • • • • :'� 11.5 10.0 ' 8.5 • 7.0 10.0 11.4 12.8 14.2 15.6 17.0 18.4 19.8 21.2 22.6 24.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i Voya Investment Mgmt 14.88 37 16.10 40 1 R1000G 14.63 44 15.48 25 Median 14.39 16.96 5 Years Ending 3/31/14 29.9 ro 28.1 26.3 • 24.5 • • • 0 22.7 • i • • •• • • � ' • . • • . • Median . 19.1 •: w: . ]e• !• s •0 Return N ; • •.'~ • 17.4 • Q 15.6 • • 13.8 12.0 10.0 11.4 12.8 14.2 15.6 17.0 18.4 19.8 21.2 22.6 24.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i Voya Investment Mgmt 20.77 61 16.05 26 1 R1000G 21.68 44 16.45 35 Median 21.35 17.17 48 City of Clearwater Employees Pension Fund Equity Summary Statistics Voya Investment Mgmt Period Ending 3/14 Portfolio R1000G Total Number Of Securities 61 632 Equity Market Value 125,751,463 Average Capitalization $(000) 102,792,969 101,348,659 Median Capitalization $(000) 41,829,181 8,290,530 Equity Segment Yield 1.26 1.63 Equity Segment P/E -Average 23.41 22.16 Equity Segment P/E - Median 24.57 22.70 Equity Segment Beta 1.02 0.96 Price/Book Ratio 3.89 4.27 Debt/Equity Ratio 43.43 49.30 Five Year Earnings Growth 21.04 15.62 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Apple Inc 5,984,651 4.76 -3.77 Microsoft Corp 4,476,518 3.56 10.33 Google Inc 4,453,582 3.54 -0.55 Gilead Sciences Inc 3,467,888 2.76 -5.71 Home Depot Inc 3,384,390 2.69 -3.34 Comcast Corp New 3,105,742 2.47 -3.31 Oracle Corp 2,956,116 2.35 7.27 E M C Corp Mass 2,949,618 2.35 9.82 Pepsico Inc 2,820,630 2.24 1.38 Union Pac Corp 2,818,653 2.24 12.28 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Delta Air Lines Inc 26.39 Celgene Corp -17.38 Actavis Plc 22.53 Cabot Oil& Gas Corp -12.55 Eog Res Inc 17.01 Lauder Estee Cos Inc -10.94 Halliburton Co 16.35 Mastercard Inc -10.47 Michael Kors Hldgs L 14.88 Discovery Communicat -8.54 Delphi Automotive PI 13.30 Prudential Finl Inc -7.63 Mylan Labs Inc 12.51 Boeing Co -7.54 Union Pac Corp 12.28 Ingersoll-Rand Plc -6.68 Allergan Inc 11.77 Starbucks Corp -6.05 Lyondellbasell Indus 11.54 Costco Whsl Corp New -5.91 49 City of Clearwater Employees Pension Fund Equity Contribution to Return Voya Investment Mgmt Period Ending 3/14 Portfolio R1000G Total Number Of Securities 61 632 Equity Market Value 125,751,463 Average Capitalization $(000) 102,792,969 101,348,659 Median Capitalization $(000) 41,829,181 8,290,530 Equity Segment Yield 1.26 1.63 Equity Segment P/E -Average 23.41 22.16 Equity Segment P/E - Median 24.57 22.70 Equity Segment Beta 1.02 0.96 Price/Book Ratio 3.89 4.27 Debt/Equity Ratio 43.43 49.30 Five Year Earnings Growth 21.04 15.62 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Microsoft Corp 4,476,518 3.56 10.33 Actavis Plc 1,959,074 1.56 22.53 Halliburton Co 2,453,946 1.95 16.35 Eog Res Inc 2,226,530 1.77 17.01 Union Pac Corp 2,818,653 2.24 12.28 E M C Corp Mass 2,949,618 2.35 9.82 Lyondellbasell Indus 2,402,269 1.91 11.54 Allergan Inc 2,349,213 1.87 11.77 Delphi Automotive PI 2,075,837 1.65 13.30 McKesson Hboc Inc 2,680,333 2.13 9.55 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Mastercard Inc 2,442,690 1.94 -10.47 Lauder Estee Cos Inc 2,124,778 1.69 -10.94 Apple Inc 5,984,651 4.76 -3.77 Celgene Corp 1,228,480 0.98 -17.38 Gilead Sciences Inc 3,467,888 2.76 -5.71 Boeing Co 2,623,996 2.09 -7.54 Starbucks Corp 2,691,578 2.14 -6.05 Prudential Finl Inc 1,885,156 1.50 -7.63 Costco Whsl Corp New 1,943,232 1.55 -5.91 Ingersoll-Rand Plc 1,708,042 1.36 -6.68 50 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Voya Investment Mgmt Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 3.86 4.44 14.34 6.67 0.30 0,03 0.26 Materials 4.62 4.50 0.90 3.19 ��.1.1. 0.00 1.(') Industrials 12.12 12.41 0.85 0.91 1. 0.00 1. Consumer Discretionary 23.02 19.89 2,47 ,04 1.(') (').I.(') 0,20 Consumer Staples 12.10 11.89 0,34 0,00 0,04 0.00 0,04 Health Care 12.57 12.23 3.41 3.58 0,02 0.01 1. Financials 5.55 5.36 3,89 0.21 0,23 0.00 0,2 Information Technology 26.16 27.10 0,09 1.91 0,52 1 0, Telecom. Services 0.00 1.95 1..4.4. 0.00 0.05 0.05 Utilities 0.00 0.23 12.05 0.00 0,02 0,02 100.00 100.00 0.28 1.11 0,73 .11. 0,8 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 -0.29% [Actual Return-0.01%] - [Buy Hold Return 0.28%] 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Voya Investment Mgmt Quarter Ending 3/14 %Allocation %Return %Variance Energy 3.86 NIMEMEM 14.34 4.44 6.67 1 0.26 Materials 4.62 .90 4.50 3.19 -0.10 Industrials 12.41 0.91 -0.01 Con.Discretionary 19 89 2 -2.041 -0.20 Consumer Staples 12.10 -0.34 1 -0.04 11.89 Health Care 12.57 3.41 -0.01 12.23 19 3.58 Financials 5.55 -3.89 ME -0.23 5.36 0.21 26.16 -0.09 -0.53 Infomation Tech. 27.10 1.91 Telecom. Services 0.00 0.05 1.95 -1.44 0.00 -0.02 Utilities 0.23 12.05 ® Voya Investment Mgmt ❑ RIOOOG 52 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 3/31/14 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 JU -2.0 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 3.02 3.02 21.63 14.65 21.81 4.29 R1000V 3.02 3.02 21.58 14.80 21.75 4.22 Asset Growth($000) Beginning Market Value 44,511 44,511 37,700 45,616 25,639 26,197 Net Contributions&Withdrawals 0 0 0 -25,811 -25,811 -25,811 Gain/Loss+Income 1,344 1,344 8,155 26,050 46,027 45,469 Ending Market Value 45,855 45,855 45,855 45,855 45,855 45,855 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 3/31/14 Asset Allocation($000) Cash&Equiv $0 0.00% Domestic Equity $45,855 100.00% Risk/Return Analysis Periods from 6/07 to 3/14 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 4.29 20.79 0.17 0.09 1 R1000V 4.22 20.87 0.17 T" 91-Day Treasury Bill 0.75 0.71 0.00 54 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 30% 25% _____ n 1 20% ------ 15% ------ ------ 10% 5% 0% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Qtr Year Years Years Years Years Years High 8.53 29.10 24.92 17.56 17.59 26.26 10.24 1st Qt 3.25 25.08 22.18 15.97 15.90 23.55 9.43 Median 2.65 22.60 19.64 14.88 15.05 21.80 8.78 3rd Qt 1.88 19.84 17.22 13.98 14.15 20.66 7.81 Low 0.97 14.42 13.23 10.67 11.26 17.10 6.84 n NTGI-QM R1 000V Net Ret 3.02 21.63 20.62 14.65 14.81 21.81 7.54 Rank 31 56 38 64 59 49 84 1 R1000V Net Ret 3.02 21.58 20.16 14.80 14.89 21.75 7.47 Rank 31 58 45 59 58 51 88 55 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% ------ 20 1---- -1---- ---- E V 10% ------ 0% --- lo -10% -20% -30% -40% --- -50% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 High 8.53 40.77 20.66 14.43 23.53 44.12 -23.77 1st Qt 3.25 36.71 17.66 6.68 17.03 30.66 -33.03 Median 2.65 33.09 15.50 1.28 14.52 23.94 -35.56 3rd Qt 1.88 29.28 8.58 -0.79 11.85 20.36 -38.13 Low 0.97 16.93 4.70 -6.00 9.74 14.39 -44.05 n NTGI-QM R1 000V Net Ret 3.02 32.94 18.09 -0.77 15.75 20.35 -36.86 Rank 31 50 21 74 37 76 66 1 R1000V Net Ret 3.02 32.54 17.50 0.39 15.51 19.69 -36.85 Rank 31 54 28 63 43 82 65 56 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Large Value Portfolios 21% 20% 19% 18% n 17% 16% i n 15 14% 13% ----�------ 12% 1 1 10% 9% Jun I I Mar I I Dee 10 Sep 10 Jun 10 Mar 14 Dee 13 Scp 13 Jun 13 Mar 13 High 17.25 19.36 19.38 20.49 14.85 I st Qt 1 5.96 17.38 17.68 1 9.59 13.12 Median 14.90 16.35 16.44 18.60 12.35 3rd Qt 14.28 15.32 15.43 17.72 11.40 Low 12.42 13.33 13.01 14.87 9.46 n NTG7-QM RIOOOV Net Ret 14.65 1 5.92 16.10 1 8.38 12.63 Rank 66 64 63 59 40 1 RIOOOV Net Ret 14.80 1 6.06 1 6.25 1 8.51 12.74 Rank 60 62 59 56 38 NTGI-QM RIOOOV Value Added Analysis - Net of Fee 0.8% 0.6% 0.4% 0.4 .3 0.3 0.2% ME O.1 O.1 O.1 O.1 0.0% -0.2% -0.4% -0.6% -0.8% -1.0% -1.2% -1.4% 1.3 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.RI OOOV ® Cumulative Value Added - 2 Yr Rolling Avg(AillllAahl ed) 57 City of Clearwater Employees Pension Fund Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 4 4 11 11 Positive Periods 4 4 9 9 16 16 16 16 Up Market Capture 1.00 0.99 1.00 1.00 Down Market Capture 1.00 1.00 1.00 Batting Average 0.75 0.83 0.90 0.85 Worst Quarter 3.02 3.02 16,15 16,21 16,15 16,21 22,13 22,17 Best Quarter 10.02 10.01 12.60 13.11 18.29 18.24 18.29 18.24 Worst 4 Quarters 21.63 21.58 1.81 3.00 1.78 1,90 42,31 42.42 Best 4 Quarters 21.63 21.58 32.94 32.54 54.33 53.57 54.33 53.57 Standard Deviation 6.67 6.66 15.96 16.17 16.89 16.98 20.79 20.87 Beta 1.00 0.99 0.99 1.00 Alpha 0.00 0.01 0.04 0.02 R-Squared 1.00 1.00 1.00 1.00 Sharpe Ratio 3.23 3.23 0.91 0.91 1.28 1.27 0.17 0.17 Treynor Ratio 21.53 14.78 21.82 3.55 Tracking Error 0.02 0.93 0.72 0.62 Information Ratio 2.46 0,1.3 0.04 0.09 -j 58 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Value Portfolios 3 Years Ending 3/31/14 19.0 ro 18.0 • c 17.0 . •• „ 1 16.0 « • • o . • 15.0 • �. • . • Median 7a ' t ' Return N 14.0 • • Q 13.0 12.0 • 11.01 1 • 11.0 12.1 13.2 14.3 15.4 16.5 17.6 18.7 19.8 20.9 22.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 14.65 64 15.96 39 1 R1000V 14.80 59 16.17 47 Median 14.88 16.52 5 Years Ending 3/31/14 28.9 ro 27.5 26.1 • • 24.7 0 23.3 '• ..'• 21.9 • • "'� • . Median 20.5 • ' �� r • r ; • Return 19.1 • • • Q 17.8 �. 16.4 • • 15.0 11.0 12.2 13.4 14.6 15.8 17.0 18.2 19.4 20.6 21.8 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 21.81 49 16.89 42 1 R1000V 21.75 51 16.98 47 Median 21.80 17.18 59 City of Clearwater Employees Pension Fund Eagle Capital Management as of 3/31/14 Portfolio Performance 28.0 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr 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 1.73 12.08 19.33 1.73 25.61 Russell 1000 Value 3.02 13.33 17.81 3.02 23.74 Asset Growth(5000) Beginning Market Value 42,630 38,696 36,344 42,630 33,239 Net Contributions&Withdrawals 0 -1 -1 0 -2 Gain/Loss+Income 738 4,673 7,025 738 10,131 Ending Market Value 43,368 43,368 43,368 43,368 43,368 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Oracle Corp Information Technology 8.04 Energy 4.67 Berkshire Hathaway I Financials 7.22 Materials 7.56 Aon Plc Financials 6.10 Industrials 1.26 Microsoft Corp Information Technology 5.92 Consumer Discretionary 13.85 Ecolab Inc Materials 4.29 Consumer Staples 18.92 Liberty Global Plc Consumer Discretionary 4.20 Health Care 6.92 Unitedhealth Group I Health Care 4.00 Financials 26.78 Morgan Stanley Financials 3.73 Information Technology 20.05 Coca Cola Co Consumer Staples 3.65 Telecom Services 0.00 Noble Energy Inc Energy 3.62 Utilities 0.00 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,289 2.97% Domestic Equity $42,079 97.03% Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 3/14 Alpha N/A Beta N/A R-Squared N/A 28.0 26.0 24.0 22.0 20.0 18.0 16.0 14.0 ab 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 E Eagle Capital Management 25.61 8.35 3.06 -0.54 1 Russell 1000 Value 23.74 9.65 2.45 T" 91-Day Treasury Bill 0.07 0.02 0.00 61 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 18% 16% 14% ----------- 1 12% 10% 8% 6% 4% 2% 0% Last Last 2 Qtr Qtrs High 8.53 16.58 1st Qt 3.25 14.26 Median 2.65 12.69 3rd Qt 1.88 11.14 Low 0.97 9.08 Eagle Capital Management Net Ret 1.73 12.08 Rank 80 55 1 Russell 1000 Value Net Ret 3.02 13.33 Rank 31 39 62 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 9% 8% 7% 6% 5% 4% 3% ---1------ 2 1% 0% 3/31/14 YTD High 8.53 1st Qt 3.25 Median 2.65 3rd Qt 1.88 Low 0.97 Eagle Capital Management Net Ret 1.73 Rank 80 1 Russell 1000 Value Net Ret 3.02 Rank 31 63 City of Clearwater Employees Pension Fund Risk Measure Summary Eagle Capital Management Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 0 0 Positive Periods 4 4 4 4 Up Market Capture 1.13 1.13 Down Market Capture Batting Average 0.75 0.75 Worst Quarter 1.73 3.02 1.73 3.02 Best Quarter 10.17 10.01 10.17 10.01 Worst 4 Quarters 24.38 21.58 24.38 21.58 Best 4 Quarters 24.38 21.58 24.38 21.58 Standard Deviation 7.16 6.66 7.16 6.66 Beta 1.03 1.03 Alpha 0.45 0.45 R-Squared 0.89 0.89 Sharpe Ratio 3.39 3.23 3.39 3.23 Treynor Ratio 23.59 23.59 Tracking Error 3.19 3.19 Information Ratio 0.75 0.75 -j 64 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 3/14 Portfolio Russell 1000 Value Total Number Of Securities 29 670 Equity Market Value 42,079,116 Average Capitalization $(000) 120,902,027 112,097,272 Median Capitalization $(000) 47,109,069 6,646,886 Equity Segment Yield 1.18 2.24 Equity Segment P/E -Average 20.04 17.47 Equity Segment P/E - Median 20.35 19.14 Equity Segment Beta 0.80 1.10 Price/Book Ratio 2.98 1.88 Debt/Equity Ratio 56.45 51.84 Five Year Earnings Growth 7.54 5.71 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Oracle Corp 3,379,166 8.04 7.27 Berkshire Hathaway I 3,036,771 7.22 5.41 Aon Plc 2,562,112 6.10 0.68 Microsoft Corp 2,488,093 5.92 10.33 Ecolab Inc 1,803,433 4.29 3.83 Liberty Global Plc 1,766,814 4.20 -3.44 Unitedhealth Group I 1,680,795 4.00 9.28 Morgan Stanley 1,567,851 3.73 -0.44 Coca Cola Co 1,534,802 3.65 -5.67 Noble Energy Inc 1,520,256 3.62 4.54 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Constellation Brands 20.73 Twenty First Centy F -9.72 Altera Corp 11.91 Citigroup Inc -8.64 Microsoft Corp 10.33 Loews Corp -8.55 Unitedhealth Group I 9.28 Goldman Sachs Group -7.25 Thermo Fisher Scient 8.12 Coca Cola Co -5.67 Dish Network Corp 7.41 Berkley W R Corp -3.85 Oracle Corp 7.27 Liberty Global Plc -3.44 Anadarko Pete Corp 7.08 3m Co -2.64 Berkshire Hathaway I 5.41 Wal Mart Stores Inc -2.25 Noble Energy Inc 4.54 Comcast Corp New -1.79 65 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 3/14 Portfolio Russell 1000 Value Total Number Of Securities 29 670 Equity Market Value 42,079,116 Average Capitalization $(000) 120,902,027 112,097,272 Median Capitalization $(000) 47,109,069 6,646,886 Equity Segment Yield 1.18 2.24 Equity Segment P/E -Average 20.04 17.47 Equity Segment P/E - Median 20.35 19.14 Equity Segment Beta 0.80 1.10 Price/Book Ratio 2.98 1.88 Debt/Equity Ratio 56.45 51.84 Five Year Earnings Growth 7.54 5.71 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Constellation Brands 1,325,532 3.15 20.73 Microsoft Corp 2,488,093 5.92 10.33 Oracle Corp 3,379,166 8.04 7.27 Berkshire Hathaway I 3,036,771 7.22 5.41 Unitedhealth Group I 1,680,795 4.00 9.28 Thermo Fisher Scient 1,226,448 2.92 8.12 Dish Network Corp 1,163,327 2.77 7.41 Altera Corp 677,688 1.61 11.91 Ecolab Inc 1,803,433 4.29 3.83 Noble Energy Inc 1,520,256 3.62 4.54 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Twenty First Centy F 1,403,512 3.34 -9.72 Citigroup Inc 1,285,200 3.06 -8.64 Loews Corp 1,211,375 2.88 -8.55 Coca Cola Co 1,534,802 3.65 -5.67 Liberty Global Plc 1,766,814 4.20 -3.44 Goldman Sachs Group 753,710 1.79 -7.25 Wal Mart Stores Inc 1,459,813 3.47 -2.25 Berkley W R Corp 840,724 2.00 -3.85 Comcast Corp New 1,487,180 3.54 -1.79 Mondelez Intl Inc 1,319,810 3.14 -1.72 66 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Eagle Capital Management Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 7.27 15.03 1.86 0,1.7 0.15 0.25 0.40 Materials 7.73 2.93 2.74 3.24 0,04 0.01 0,03 Industrials 1.30 10.50 2,64 0,07 0,03 0.29 0.25 Consumer Discretionary 14.49 6.57 2,42 1,95 0,07 0,39 0,46 Consumer Staples 18.71 5.90 1.50 1.80 0,06 0,1.6 0,21. Health Care 6.37 12.92 8.78 8.17 0.04 0,34 0,30 Financials 23.84 28.97 0,40 3.54 0,94 Information Technology 20.29 8.93 6.20 3.63 0.52 0.07 0.59 Telecom. Services 0.00 2.52 1.53 0.00 0.04 0.04 Utilities 0.00 5.74 9.66 0.00 0,38 0,38 100.00 100.00 1.96 3.04 0,43 0,64 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 -0.15% [Actual Return 1.82%] - [Buy Hold Return 1.96%] 67 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Eagle Capital Management Quarter Ending 3/14 %Allocation %Return %Variance Energy 1.86 15.03 -0.17 M 0.40 Materials 7.73 2.74 2.93 3.24 -0.03 Industrials 10.50 2 64 0.25 Con.Discretionary 6.57 14.49 -1.95 -0.46 Consumer Staples 18.71 1.50 -0.21 1.80 Health Care 8.78 -0.30 75.9792 8.17 Financials .84 -0.40 1 -0.97 28.97 3.54 20.29 "M363 6.20 0.59 Info mation Tech. =8.93 Telecom. Services '00 0.04 2.52 1.53 Utilities p -0.38 5.74 9.66 ® Eagle Capital Management ❑ Russell 1000 Value 68 City of Clearwater Employees Pension Fund Manning and Napier as of 3/31/14 Portfolio Performance 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 Manning and Napier Russell 1000 Value Incept Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD 1/31/13 Manning and Napier 1.94 10.68 15.08 1.94 19.49 Russell 1000 Value 3.02 13.33 17.81 3.02 23.74 Asset Growth(5000) Beginning Market Value 39,969 36,815 35,408 39,969 33,104 Net Contributions&Withdrawals -1 -1 -2 -1 -2 Gain/Loss+Income 777 3,932 5,340 777 7,644 Ending Market Value 40,746 40,746 40,746 40,746 40,746 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Exxon Mobil Corp Energy 4.11 Energy 15.92 Microsoft Corp Information Technology 4.07 Materials 1.53 Johnson&Johnson Health Care 4.06 Industrials 14.47 Pfizer Inc Health Care 3.72 Consumer Discretionary 6.19 Chevron Corp Energy 3.64 Consumer Staples 20.45 Wal Mart Stores Inc Consumer Staples 3.27 Health Care 24.59 Procter&Gamble Co Consumer Staples 3.11 Financials 0.79 Novartis A G Health Care 2.89 Information Technology 14.71 Apple Inc Information Technology 2.84 Telecom Services 1.25 Royal Dutch Shell Pl Energy 2.76 Utilities 0.09 69 City of Clearwater Employees Pension Fund Manning and Napier as of 3/31/14 Asset Allocation($000) Cash&Equiv $818 2.01% Domestic Equity $39,928 97.99% Risk/Return Analysis(Number of returns<12) Periods from 12/12 to 3/14 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 19.49 9.38 2.07 -1.52 1 Russell 1000 Value 23.74 9.65 2.45 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 3/14 18% 16% 14% ----------- 1 12% ----------- 10% 8% 6% 4% 2% 0% Last Last 2 Qtr Qtrs High 8.53 16.58 1st Qt 3.25 14.26 Median 2.65 12.69 3rd Qt 1.88 11.14 Low 0.97 9.08 Manning and Napier Net Ret 1.94 10.68 Rank 71 80 1 Russell 1000 Value Net Ret 3.02 13.33 Rank 31 39 71 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 9% 8% 7% 6% 5% 4% 3% ---1------ 2% 1% 0% 3/31/14 YTD High 8.53 1st Qt 3.25 Median 2.65 3rd Qt 1.88 Low 0.97 Manning and Napier Net Ret 1.94 Rank 71 1 Russell 1000 Value Net Ret 3.02 Rank 31 72 City of Clearwater Employees Pension Fund Risk Measure Summary Manning and Napier Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 0 0 Positive Periods 4 4 4 4 Up Market Capture 0.80 0.80 Down Market Capture Batting Average 0.25 0.25 Worst Quarter 1.83 3.02 1.83 3.02 Best Quarter 8.57 10.01 8.57 10.01 Worst 4 Quarters 17.19 21.58 17.19 21.58 Best 4 Quarters 17.19 21.58 17.19 21.58 Standard Deviation 6.30 6.66 6.30 6.66 Beta 0.88 0.88 Alpha 0,34 0,34 R-Squared 0.97 0.97 Sharpe Ratio 2.72 3.23 2.72 3.23 Treynor Ratio 19.56 19.56 Tracking Error 1.36 1.36 Information Ratio 2,81 2,81 -j 73 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 3/14 Portfolio Russell 1000 Value Total Number Of Securities 91 670 Equity Market Value 39,927,658 Average Capitalization $(000) 153,460,487 112,097,272 Median Capitalization $(000) 50,468,261 6,646,886 Equity Segment Yield 2.93 2.24 Equity Segment P/E -Average 16.99 17.47 Equity Segment P/E - Median 17.66 19.14 Equity Segment Beta 0.76 1.10 Price/Book Ratio 2.91 1.88 Debt/Equity Ratio 41.07 51.84 Five Year Earnings Growth 8.67 5.71 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Exxon Mobil Corp 1,634,675 4.11 -2.80 Microsoft Corp 1,619,843 4.07 10.33 Johnson& Johnson 1,614,312 4.06 8.02 Pfizer Inc 1,482,563 3.72 5.75 Chevron Corp 1,449,037 3.64 -3.95 Wal Mart Stores Inc 1,300,227 3.27 -2.25 Procter& Gamble Co 1,238,741 3.11 -0.24 Novartis A G 1,149,555 2.89 8.04 Apple Inc 1,131,448 2.84 -3.77 Royal Dutch Shell PI 1,100,576 2.76 3.63 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Teva Pharmaceutical 32.63 Pearson Plc -20.49 Magna Intl Inc 17.83 Mobile Telesystems O -19.14 Statoil Asa 16.95 Sabesp Cia Saneame -18.34 Eli Lilly & Co 16.47 Teck Resources Ltd -16.65 Hewlett Packard Co 16.22 Mattel Inc -14.80 Walgreen Co 15.50 Thomson Reuters Corp -8.70 General Dynamics Cor 14.66 Boeing Co -7.54 Merck & Co Inc New 14.32 Conagra Foods Inc -7.20 Astrazeneca Plc 12.44 L Brands Inc -5.92 Lockheed Martin Corp 10.71 International Paper -5.75 74 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 3/14 Portfolio Russell 1000 Value Total Number Of Securities 91 670 Equity Market Value 39,927,658 Average Capitalization $(000) 153,460,487 112,097,272 Median Capitalization $(000) 50,468,261 6,646,886 Equity Segment Yield 2.93 2.24 Equity Segment P/E -Average 16.99 17.47 Equity Segment P/E - Median 17.66 19.14 Equity Segment Beta 0.76 1.10 Price/Book Ratio 2.91 1.88 Debt/Equity Ratio 41.07 51.84 Five Year Earnings Growth 8.67 5.71 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Microsoft Corp 1,619,843 4.07 10.33 Merck & Co Inc New 976,898 2.45 14.32 Johnson& Johnson 1,614,312 4.06 8.02 Novartis A G 1,149,555 2.89 8.04 Pfizer Inc 1,482,563 3.72 5.75 Statoil Asa 500,566 1.26 16.95 Eli Lilly & Co 428,089 1.08 16.47 Astrazeneca Plc 541,618 1.36 12.44 Teva Pharmaceutical 161,955 0.41 32.63 Hewlett Packard Co 305,899 0.77 16.22 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Coca Cola Co 1,093,266 2.75 -5.67 Chevron Corp 1,449,037 3.64 -3.95 Exxon Mobil Corp 1,634,675 4.11 -2.80 Philip Morris Intl I 913,424 2.29 -4.94 Apple Inc 1,131,448 2.84 -3.77 Boeing Co 467,450 1.17 -7.54 Wal Mart Stores Inc 1,300,227 3.27 -2.25 Home Depot Inc 849,381 2.13 -3.34 Sanofi-Aventis 765,850 1.92 -2.52 Mobile Telesystems O 96,615 0.24 -19.14 75 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Manning and Napier Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 15.74 15.03 1.06 0,1.7 0.19 0,02 0.17 Materials 1.60 2.93 0,02 3.24 0,05 0.00 0,06 Industrials 14.47 10.50 0.74 0,07 0.12 0,1.2 1. Consumer Discretionary .09 6.57 2,68 ry .. �� ...1..9 ...0.04 0.02 0.02 Consumer Staples 21.05 5.90 0,64. 1.80 0,51 (),I.O 0,70 Health Care 24.08 12.92 6.49 8.17 0,41. 0.57 0.17 Financials 0.83 28.97 0.36 3.54 0,03 0,14 0,17 Information Technology 14.69 8.93 3.39 3.63 0,04 0.03 0.00 Telecom. Services 1.32 2.52 5,65 1.53 0,09 0.02 0,08 Utilities 0.12 5.74 1.8.34. 9.66 0,03 0,37 0,41 100.00 100.00 1.94 3.04 0,89 0,20 1,0 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 0.06% [Actual Return 2.00%] - [Buy Hold Return 1.94%] 76 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Manning and Napier Quarter Ending 3/14 %Allocation %Return %Variance Energy 15.74 1 1.06 15.03 -0.17 M 0.17 Materials 1.60 -0.02 2.93 3.24 -0.06 Industrials 10.50.47 -0.07 10.74 -0.01 Con.Discretionary 6:09 168 -0.02 Consumer Staples 21.05 -0.64 1 -0.70 5.90 1.80 Health Care 24.08 !!!P8..17 49 0.17 712.92 36 -0.17 Financials 28.97 3.54 Infomation Tech. 14.69 3.39 -0.00 8.93 3.63 Telecom. Services 1.32 -5.65 ME -0.08 2.52 1.53 2 -18.34 -0.41 Utilities 5.74 9.66 ® Manning and Napier ❑ Russell 1000 Value 77 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 3/31/14 Portfolio Performance 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 3.25 3.25 25.69 16.82 28.16 10.55 13.04 R Mid Cap 3.53 3.53 23.51 14.37 25.55 10.05 12.08 Asset Growth(5000) Beginning Market Value 105,014 105,014 99,283 88,717 36,904 83,725 15,585 Net Contributions&Withdrawals -1 -1 -14,005 -23,017 -23,017 -23,017 -23,017 Gain/Loss+Income 3,409 3,409 23,144 42,722 94,535 47,713 115,854 Ending Market Value 108,422 108,422 108,422 108,422 108,422 108,422 108,422 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Regeneron Pharmacem Health Care 2.30 Energy 5.82 Brunswick Corp Consumer Discretionary 2.22 Materials 4.21 Ihs Inc Industrials 2.17 Industrials 18.06 Allstate Corp Financials 2.12 Consumer Discretionary 20.05 Lincoln Natl Corp In Financials 2.03 Consumer Staples 1.11 Computer Sciences Co Information Technology 1.98 Health Care 14.55 Ashland Inc New Materials 1.89 Financials 15.86 Wyndham Worldwide Co Consumer Discretionary 1.66 Information Technology 15.91 Hca Holdings Inc Health Care 1.65 Telecom Services 0.00 Transdigm Group Inc Industrials 1.63 Utilities 4.42 Holdings and allocations only include SMA accounts. 78 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 3/31/14 Asset Allocation($000) Cash&Equiv $3,911 3.61% Domestic Equity $104,511 96.39% Risk/Return Analysis Periods from 3/88 to 3/14 Alpha 0.08 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 13.04 22.90 0.41 0.13 1 R Mid Cap 12.08 18.17 0.46 T" 91-Day Treasury Bill 3.69 1.27 0.00 Holdings and allocations only include SMA accounts. 79 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 40% 35% 30% 25% 20% --- 15% 1 - --- 10% ---U- 000 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 4.91 34.91 29.05 18.29 20.00 30.21 16.14 13.77 12.70 13.73 13.76 1st Qt 3.38 26.48 23.72 15.83 17.62 26.98 13.16 10.10 11.03 11.85 12.36 Median 2.60 23.70 20.11 13.60 16.71 24.94 11.74 8.85 8.93 10.18 10.70 3rd Qt 1.60 21.33 19.53 13.35 15.99 23.82 10.92 7.68 8.63 9.82 10.04 Low 0.58 20.33 16.99 11.73 14.69 20.10 9.15 7.15 7.76 8.96 9.73 M Mid Cap Equity Comp Net Ret 3.25 25.69 21.45 16.82 20.17 28.16 13.17 10.45 9.93 11.36 10.55 Rank 25 32 34 10 2 11 22 17 35 32 53 1 R Mid Cap Net Ret 3.53 23.51 20.36 14.37 16.78 25.55 10.76 7.70 8.21 9.61 10.05 Rank 20 52 43 42 44 39 77 72 85 86 75 80 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% --- 1- -10% --- -20% -30% -40% --- -50% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.91 49.42 23.12 7.47 29.96 62.84 -26.70 16.25 22.62 16.68 26.65 1st Qt 3.38 41.40 19.38 0.93 27.04 41.66 -34.41 8.84 18.34 12.74 21.86 Median 2.60 35.57 17.84 -1.77 25.33 37.46 -36.57 7.20 12.62 12.06 17.63 3rd Qt 1.60 33.53 14.17 -4.40 20.98 32.80 -39.97 2.65 10.46 9.28 16.44 Low 0.58 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 3.25 37.36 22.00 -0.10 28.03 45.33 -41.79 10.26 12.53 7.85 14.48 Rank 25 40 12 29 13 11 89 15 56 79 89 1 R Mid Cap Net Ret 3.53 34.76 17.26 -1.56 25.49 40.47 -41.46 5.59 15.27 12.65 20.23 Rank 20 60 59 39 48 35 89 65 46 39 29 81 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 3 3 31 32 Positive Periods 4 4 10 10 17 17 73 72 Up Market Capture 1.09 1.08 1.04 1.15 Down Market Capture 0.93 0.87 1.16 Batting Average 0.25 0.50 0.60 0.56 Worst Quarter 1.61 2.21 17.17 18,90,90 17.17 18,90,90 26,78 27,28 Best Quarter 11.51 8.39 17.31 12.95 23.05 20.80 49.24 20.80 Worst 4 Quarters 25.69 23.51 1.71 1,67 ().➢.() 1,67 41.79 41.,46 Best 4 Quarters 25.69 23.51 37.36 34.76 65.80 67.72 77.74 67.72 Standard Deviation 8.89 6.10 18.04 17.85 18.68 19.09 22.90 18.17 Beta 1.19 0.99 0.96 1.14 Alpha 0,54 0.59 0.76 0.08 R-Squared 0.86 0.95 0.96 0.83 Sharpe Ratio 2.88 3.84 0.93 0.80 1.50 1.33 0.41 0.46 Treynor Ratio 21.52 16.92 29.16 8.18 Tracking Error 4.44 3.90 3.74 9.88 Information Ratio 0.44 0.55 0.54 0.13 -j 82 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios 3 Years Ending 3/31/14 19.0 ro 18.0 17.0 am 16.0 . ' • 0 15.0 . °' 1 •' 14.0 • . Median 13.0 . '. • Return 12.0 2. • Q 11.0 • ' • 10.0 9.0 14.0 14.9 15.8 16.7 17.6 18.5 19.4 20.3 21.2 22.1 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 16.82 10 18.04 23 1 R Mid Cap 14.37 42 17.85 18 Median 13.60 18.81 5 Years Ending 3/31/14 33.9 ro 32.1 30.3 c 28.5 0 26.7 • • • cC 24.9 • Median .r • • .1 Return 23.1 • 21.3 Q 19.5 a • 17.8 16.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 28.16 11 18.68 29 1 R Mid Cap 25.55 39 19.09 37 Median 24.94 19.31 83 City of Clearwater Employees Pension Fund Artisan Partners as of 3/31/14 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.01 INN -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 2.80 2.80 31.26 17.15 27.91 12.62 10.77 R Mid Cap G 2.05 2.05 24.23 13.52 24.73 9.47 7.97 Asset Growth(5000) Beginning Market Value 51,471 51,471 47,060 43,998 20,661 33,295 29,914 Net Contributions&Withdrawals -1 -1 -8,003 -13,010 -13,011 -13,011 -13,011 Gain/Loss+Income 1,440 1,440 13,853 21,923 45,260 32,626 36,007 Ending Market Value 52,910 52,910 52,910 52,910 52,910 52,910 52,910 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Regeneron Pharmacem Health Care 4.74 Energy 3.69 Ihs Inc Industrials 4.48 Materials 0.00 Applied Materials In Information Technology 3.35 Industrials 16.77 Borg-Warner Automoti Consumer Discretionary 3.20 Consumer Discretionary 22.32 Discover Finl Svcs Financials 3.00 Consumer Staples 1.27 Illumina Inc Health Care 2.82 Health Care 23.29 Trimble Navigation L Information Technology 2.70 Financials 5.13 Cigna Corp Health Care 2.49 Information Technology 27.52 Chipotle Mexican Gri Consumer Discretionary 2.46 Telecom Services 0.00 Ametek Inc New Industrials 2.44 Utilities 0.00 84 City of Clearwater Employees Pension Fund Artisan Partners as of 3/31/14 Asset Allocation($000) Cash&Equiv $2,218 4.19% Domestic Equity $50,692 95.81% Risk/Return Analysis Periods from 7/01 to 3/14 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 10.77 19.36 0.47 0.37 1 R Mid Cap G 7.97 19.26 0.33 T" 91-Day Treasury Bill 1.67 0.52 0.00 85 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% 25% 1 -- 20% --- --- -- 1 15% 00 --- - 10% 5% 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 3.72 30.36 23.36 18.09 22.13 29.10 15.17 13.42 12.63 14.51 13.65 1st Qt 2.82 27.97 20.82 15.98 20.07 27.17 13.84 12.61 11.93 13.70 12.82 Median 2.23 25.49 19.52 13.65 17.26 24.77 11.06 9.10 8.75 11.65 12.12 3rd Qt 0.33 21.77 17.61 12.73 16.51 23.73 9.92 8.34 8.06 10.04 9.78 Low -1.31 16.86 15.24 7.89 14.68 22.30 7.67 5.70 7.12 9.70 9.44 r Artisan Partners Net Ret 2.80 31.26 19.51 17.15 21.22 27.91 14.72 13.04 12.17 13.26 12.62 Rank 28 3 51 14 11 13 15 19 16 35 33 1 R Mid Cap G Net Ret 2.05 24.23 18.36 13.52 16.66 24.73 10.54 8.24 8.07 9.60 9.47 Rank 51 60 62 51 69 50 53 77 70 95 89 86 City of Clearwater Employees Pension Fund Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 3-- 40% 30% --- - --- 20% _ - --- 10% --- 0% -- -10% --- -20% -30% -40% --- -50% -60% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 3.72 43.46 22.65 14.72 35.44 58.62 -32.90 34.56 22.13 26.11 21.51 1st Qt 2.82 39.44 20.66 1.60 30.79 47.62 -35.48 22.31 14.71 15.58 19.19 Median 2.23 37.43 17.65 -0.79 27.03 40.37 -42.63 17.83 13.32 13.14 16.12 3rd Qt 0.33 31.05 14.97 -4.60 24.63 35.55 -44.78 10.03 10.38 10.73 12.67 Low -1.31 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 2.80 39.21 20.82 0.07 33.15 51.38 -42.87 22.31 10.94 10.19 16.07 Rank 28 29 22 42 13 19 54 25 70 87 54 1 R Mid Cap G Net Ret 2.05 35.76 15.80 -1.66 26.39 46.30 -44.32 11.41 10.64 12.10 15.48 Rank 51 60 68 58 61 27 65 71 72 66 54 87 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Midcap Growth Portfolios 24% 23% 22% x 21% 20% 19% x 18% 1 17% r 16% 15% 1 14% ______ 13% 12% 1 1 10% Jun I I Mar I I Dee 10 Sep 10 Jun 10 Mar 14 Dee 13 Scp 13 Jun 13 Mar 13 High 17.88 21.85 23.26 23.59 19.66 I st Qt 1 5.94 1 8.43 20.47 22.15 17.81 Median 13.65 16.59 18.32 19.48 15.85 3rd Qt 12.79 14.57 16.77 18.74 14.32 Low 10.75 13.25 15.09 17.40 12.60 r Artisan Partners Net Ret 1 7.15 1 8.95 21.84 22.74 1 8.04 Rank II 17 15 16 21 1 R Mid Cap G Net Ret 13.52 1 5.63 17.65 1 9.53 14.24 Rank 51 61 55 48 78 Artisan Partners Value Added Analysis - Net of Fee 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% .2 4.0% 2.5 2.0% MM J 1.2 0.5 0.6 7 0.0% -0.1 -0.2 2.0% 1 1.H 1.H -4.0% 4.6 -6.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.R Mid Cap G ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAah] ed) 88 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 2 3 3 14 15 Positive Periods 4 4 10 10 17 17 36 35 Up Market Capture 1.29 1.10 1.05 1.03 Down Market Capture 0.88 0.86 0.90 Batting Average 0.75 0.67 0.55 0.46 Worst Quarter 2.80 2.05 14,74 19, 14,74 19, 27,54 27,36 Best Quarter 16.16 9.34 21.06 14.52 21.06 20.67 26.70 27.06 Worst 4 Quarters 31.26 24.23 1.45 2,99 0.07 2,99 42.37 44,32 Best 4 Quarters 31.26 24.23 39.21 35.76 58.59 62.98 58.59 62.98 Standard Deviation 12.35 7.39 18.71 18.28 19.12 19.16 20.96 21.65 Beta 1.34 0.95 0.95 0.94 Alpha 0,35 0.99 0.94 0.68 R-Squared 0.78 0.85 0.91 0.94 Sharpe Ratio 2.52 3.27 0.91 0.74 1.45 1.28 0.53 0.40 Treynor Ratio 23.32 17.98 29.18 11.87 Tracking Error 7.47 7.26 5.96 5.35 Information Ratio 0.82 0.42 0.41 0.37 -j 89 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios 3 Years Ending 3/31/14 22.0 ro 20.0 c 18.0 �• �S 16.0 �. • �. •. 14.0 . • . . Median Ir •• . • •� " Return N 12.0 _ • Q 10.0 • 8.0 6.0 13.0 14.3 15.6 16.9 18.2 19.5 20.8 22.1 23.4 24.7 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 17.15 14 18.71 46 1 R Mid Cap G 13.52 51 18.28 40 Median 13.65 19.10 5 Years Ending 3/31/14 30.0 ro 29.0 • 28.0 • lb 27.0 • . 0 26.0 • 25.0 Median 24.0 . % • . Return 23.0 } 22.0 • 21.0 20.0 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 27.91 13 19.12 50 1 R Mid Cap G 24.73 50 19.16 53 Median 24.77 19.14 90 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 3/14 Portfolio R Mid Cap G Total Number Of Securities 61 508 Equity Market Value 50,691,832 Average Capitalization $(000) 13,962,058 12,695,774 Median Capitalization $(000) 9,821,659 6,429,123 Equity Segment Yield 0.42 1.10 Equity Segment P/E -Average 43.14 25.91 Equity Segment P/E - Median 30.55 23.00 Equity Segment Beta 1.03 1.06 Price/Book Ratio 5.27 4.42 Debt/Equity Ratio 27.62 49.65 Five Year Earnings Growth 14.74 15.05 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Regeneron Pharmaceut 2,402,240 4.74 9.10 Ihs Inc 2,270,228 4.48 1.50 Applied Materials In 1,696,106 3.35 16.04 Borg-Warner Automoti 1,622,808 3.20 10.20 Discover Finl Svcs 1,521,436 3.00 4.40 Illumina Inc 1,428,771 2.82 34.39 Trimble Navigation L 1,370,673 2.70 12.02 Cigna Corp 1,264,323 2.49 -4.24 Chipotle Mexican Gri 1,245,166 2.46 6.62 Ametek Inc New 1,239,210 2.44 -2.13 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Intercept Pharmaceut 383.00 Lkq Corp -19.91 Freescale Semiconduc 52.09 Kansas City Southn -17.34 Keurig Green Mtn Inc 40.15 Chart Inds Inc -16.82 Illumina Inc 34.39 Linkedin Corp -14.71 Under Armour Inc 31.32 Commvault Systems In -13.26 Garmin Ltd 20.58 Cabot Oil& Gas Corp -12.55 Flir Sys Inc 19.99 Intercontinentalexch -11.76 Athenahealth Inc 19.14 Cree Inc -9.61 Covance Inc 17.99 Tractor Supply Co -8.78 Applied Materials In 16.04 Verisk Analytics Inc -8.76 91 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 3/14 Portfolio R Mid Cap G Total Number Of Securities 61 508 Equity Market Value 50,691,832 Average Capitalization $(000) 13,962,058 12,695,774 Median Capitalization $(000) 9,821,659 6,429,123 Equity Segment Yield 0.42 1.10 Equity Segment P/E -Average 43.14 25.91 Equity Segment P/E - Median 30.55 23.00 Equity Segment Beta 1.03 1.06 Price/Book Ratio 5.27 4.42 Debt/Equity Ratio 27.62 49.65 Five Year Earnings Growth 14.74 15.05 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Intercept Pharmaceut 178,416 0.35 383.00 Freescale Semiconduc 1,004,618 1.98 52.09 Illumina Inc 1,428,771 2.82 34.39 Applied Materials In 1,696,106 3.35 16.04 Keurig Green Mtn Inc 642,515 1.27 40.15 Under Armour Inc 813,944 1.61 31.32 Regeneron Pharmaceut 2,402,240 4.74 9.10 Athenahealth Inc 1,086,748 2.14 19.14 Borg-Warner Automoti 1,622,808 3.20 10.20 Trimble Navigation L 1,370,673 2.70 12.02 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Lkq Corp 1,129,203 2.23 -19.91 Linkedin Corp 896,404 1.77 -14.71 Tractor Supply Co 988,820 1.95 -8.78 Fortune Brands Home 1,043,626 2.06 -7.68 Chart Inds Inc 461,390 0.91 -16.82 Commvault Systems In 578,705 1.14 -13.26 Kansas City Southn 428,244 0.84 -17.34 Intercontinentalexch 587,357 1.16 -11.76 Arm Hldgs Plc 983,721 1.94 -6.89 Ipg Photonics Corp 700,280 1.38 -8.41 92 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 5.91 5.96 4,46 2.73 0,42 0.00 0,4 Materials 0.00 5.80 3.40 0.00 0,07 0,07 Industrials 16.46 15.09 3,48 2.02 f' Consumer Discretionary 20.26 25.04 1.73 0.18 0.31 0.09 0.41 Consumer Staples 0.50 8.01 40.15 3.52 0.18 (').I.(') 0.08 Health Care 24.28 13.20 9.82 6.38 0.84 0.47 1.31 Financials 5.08 8.28 1.28 0,71. 0.10 0.09 0.19 Information Technology 27.51 16.39 1.01 1.32 0,09 0,09 0,1.3 Telecom. Services 0.00 1.52 3.89 0.00 0,03 0,03 Utilities 0.00 0.71 12.05 0.00 0,07 0,07 100.00 100.00 2.44 2.14 0.02 0.29 0.31 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 0.45% [Actual Return 2.89%] - [Buy Hold Return 2.44%] 93 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 3/14 %Allocation %Return %Variance Energy 5.91 -4.46 5.96 12.73 -0.43 Materials 0 5.80 3 3.40 -0.07 Industrials 11.46 -3.48 2 02 -0.91 ME Con.Discretionary 25.04 0.83 0.41 Consumer Staples 40.15 0.08 8.01 3.52 Health Care 24.28 9.82 1.31 13.20 6.38 Financials .08 1.28 0.19 8.28 -0.71 1 Infom 27.5 1.01 -0.18 ation Tech. 16.39 1.32 Telecom. Services 0.00 -0.03 1.52 3.89 0.00 -0.07 Utilities 0.71 12.05 ® Artisan Partners ❑ R Mid Cap G 94 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 3/31/14 Portfolio Performance 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital Mgmt R Mid Cap V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/28/07 Wedge Capital Mgmt 3.68 3.68 20.08 16.28 28.27 9.14 R Mid Cap V 5.21 5.21 22.94 15.16 26.35 6.93 Asset Growth(5000) Beginning Market Value 53,544 53,544 52,224 44,719 16,242 30,365 Net Contributions&Withdrawals -1 -1 -6,002 -10,006 -10,006 -10,006 Gain/Loss+Income 1,968 1,968 9,290 20,799 49,275 35,152 Ending Market Value 55,512 55,512 55,512 55,512 55,512 55,512 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Brunswick Corp Consumer Discretionary 4.32 Energy 7.83 Allstate Corp Financials 4.13 Materials 8.18 Lincoln Natl Corp In Financials 3.94 Industrials 19.28 Computer Sciences Co Information Technology 3.86 Consumer Discretionary 17.90 Ashland Inc New Materials 3.67 Consumer Staples 0.97 Wyndham Worldwide Co Consumer Discretionary 3.22 Health Care 6.30 Hca Holdings Inc Health Care 3.21 Financials 26.00 Transdigm Group Inc Industrials 3.16 Information Technology 4.95 Carefusion Corp Health Care 3.09 Telecom Services 0.00 Werner Enterprises I Industrials 2.97 Utilities 8.59 95 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,692 3.05% Domestic Equity $53,819 96.95% Risk/Return Analysis Periods from 2/07 to 3/14 Alpha 0.54 Beta 0.99 R-Squared 0.97 10.0 9.0 r 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 9.14 20.32 0.40 0.50 1 R Mid Cap V 6.93 20.43 0.29 T" 91-Day Treasury Bill 0.96 0.50 0.00 96 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% w 25% ----- 20% ___ 15% ---- ----- W 10% 1 5% ---1--- 1 W Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Qtr Year Years Years Years Years Years Years High 10.20 29.35 27.89 20.13 21.51 33.72 1st Qt 5.85 25.93 22.84 16.42 19.01 25.71 Median 2.59 22.42 20.72 15.12 16.93 24.89 3rd Qt 1.99 20.08 19.88 13.78 15.67 24.13 Low 1.61 6.33 12.03 10.79 13.33 19.85 w Wedge Capital Mgmt Net Ret 3.68 20.08 23.13 16.28 19.01 28.27 13.09 9.05 Rank 40 75 18 30 26 13 1 R Mid Cap V Net Ret 5.21 22.94 22.20 15.16 16.90 26.35 10.81 6.84 Rank 30 47 28 50 56 21 97 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% 1- -50% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 High 10.20 44.14 32.17 7.76 43.18 61.50 -28.88 1st Qt 5.85 35.77 20.13 5.86 26.22 38.51 -33.12 Median 2.59 34.92 17.42 -0.55 23.27 33.14 -35.25 3rd Qt 1.99 30.79 14.81 -5.12 19.78 30.29 -36.61 Low 1.61 2.76 8.89 -7.49 17.95 24.49 -41.25 w Wedge Capital Mgmt Net Ret 3.68 34.92 23.16 -0.33 23.30 38.51 -34.89 Rank 40 50 8 46 46 25 45 1 R Mid Cap V Net Ret 5.21 33.45 18.48 -1.38 24.76 34.20 -38.45 Rank 30 59 30 56 40 46 84 98 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Mideap Value Portfolios 28% 26% 24% 22% 20% 1 18% 1 16%------------1 1 14%- 12% I O% Jun I I Mar I I Dee 10 Sep 10 Jun 10 Mar 14 Dee 13 Scp 13 Jun 13 Mar 13 High 20.13 20.81 24.55 26.48 18.98 I st Qt 1 6.42 18.17 1 9.46 1 9.22 1 6.59 Median 15.69 16.34 17.96 18.42 14.67 3rd Qt 13.87 14.75 16.20 17.76 13.23 Low 11.25 12.45 12.15 14.59 11.87 w Wedge Capital Mg-t Net Ret 1 6.28 1 8.31 1 9.98 20.71 1 8.65 Rank 31 21 21 21 15 1 R Mid Cap V Net Ret 15.16 1 5.96 17.26 1 9.52 14.95 Rank 55 58 58 24 41 Wedge Capital Mgmt Value Added Analysis - Net of Fee 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 2'1 .O 2.0 1.5 O.5 0.7 0.0% 02 2.0% -1.4 -3.1 -4.0% 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.R Mid Cap V ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAaliZed) 99 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 4 3 5 4 11 10 Positive Periods 3 4 8 9 15 16 17 18 Up Market Capture 0.87 1.04 1.02 1.03 Down Market Capture 0.97 0.86 0.92 Batting Average 0.50 0.67 0.65 0.68 Worst Quarter 0,05 1.66 19,63 18,47 19,63 18,47 26,4 0 27,19 Best Quarter 8.63 8.55 16.49 14.21 25.65 23.62 25.65 23.62 Worst 4 Quarters 20.08 22.94 1.92 0,40 0,63 2,36 39,75 42.51 Best 4 Quarters 20.08 22.94 34.92 33.45 73.15 72.41 73.15 72.41 Standard Deviation 7.57 5.68 19.04 17.69 19.68 19.33 23.26 23.11 Beta 1.08 1.07 0.99 0.99 Alpha 1..00 0.04 0.47 0.54 R-Squared 0.93 0.98 0.95 0.97 Sharpe Ratio 2.64 4.03 0.85 0.85 1.43 1.36 0.35 0.26 Treynor Ratio 18.60 15.16 28.41 8.22 Tracking Error 2.44 2.65 4.63 4.09 Information Ratio 0,98 0.46 0.34 0.50 -j 100 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Value Portfolios 3 Years Ending 3/31/14 20.0 ro 19.0 18.0 17.0 • 0 16.0 15.0 Median b Return N 14.0 13.0 Q 12.0 11.0 • 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 16.28 30 19.04 35 1 R Mid Cap V 15.16 50 17.69 32 Median 15.12 20.40 5 Years Ending 3/31/14 33.9 ro 32.1 30.3 28.5 cC W 0 26.7 1 • 24.9 . Median d 2 Return N 23.1 • 21.3 Q 19.5 17.8 ' 16.0 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 Wedge Capital Mgmt 28.27 13 19.68 25 1 R Mid Cap V 26.35 21 19.33 16 Median 24.89 19.81 101 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 3/14 Portfolio R Mid Cap V Total Number Of Securities 44 541 Equity Market Value 53,819,203 Average Capitalization $(000) 8,973,098 11,168,282 Median Capitalization $(000) 5,256,846 5,440,285 Equity Segment Yield 2.14 1.99 Equity Segment P/E -Average 16.57 22.72 Equity Segment P/E - Median 17.63 19.65 Equity Segment Beta 1.35 1.18 Price/Book Ratio 1.76 1.73 Debt/Equity Ratio 63.82 60.42 Five Year Earnings Growth 11.67 7.90 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Brunswick Corp 2,322,018 4.32 -1.44 Allstate Corp 2,217,936 4.13 4.28 Lincoln Natl Corp In 2,115,979 3.94 -1.54 Computer Sciences Co 2,070,374 3.86 9.18 Ashland Inc New 1,969,704 3.67 2.88 Wyndham Worldwide Co 1,728,228 3.22 -0.15 Hca Holdings Inc 1,722,000 3.21 10.04 Transdigm Group Inc 1,699,210 3.16 15.02 Carefusion Corp 1,661,086 3.09 1.00 Werner Enterprises I 1,594,222 2.97 3.36 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Dana Holding Corp 18.87 URS Corp New -10.77 Transdigm Group Inc 15.02 Endurance Specialty -7.65 Energen Corp 14.45 Darden Restaurants I -5.64 Huntington Ingalls I 13.83 Seacor Hldgs Inc -5.24 Duke Realty Corp. 13.42 Qep Res Inc -3.89 Delphi Automotive PI 13.30 Bemis Inc -3.53 Mfa Mtg Invts Inc 12.66 Murphy Oil Corp -2.58 Great Plains Energy 12.55 Lincoln Natl Corp In -1.54 Avalonbay Cmntys Inc 12.07 Brunswick Corp -1.44 Hillshire Brands Co 11.95 Sonoco Prods Co -0.94 102 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 3/14 Portfolio R Mid Cap V Total Number Of Securities 44 541 Equity Market Value 53,819,203 Average Capitalization $(000) 8,973,098 11,168,282 Median Capitalization $(000) 5,256,846 5,440,285 Equity Segment Yield 2.14 1.99 Equity Segment P/E -Average 16.57 22.72 Equity Segment P/E - Median 17.63 19.65 Equity Segment Beta 1.35 1.18 Price/Book Ratio 1.76 1.73 Debt/Equity Ratio 63.82 60.42 Five Year Earnings Growth 11.67 7.90 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Transdigm Group Inc 1,699,210 3.16 15.02 Dana Holding Corp 1,244,945 2.32 18.87 Computer Sciences Co 2,070,374 3.86 9.18 Hca Holdings Inc 1,722,000 3.21 10.04 Delphi Automotive PI 1,235,052 2.30 13.30 Duke Realty Corp. 1,204,405 2.24 13.42 Huntington Ingalls I 1,124,860 2.09 13.83 Avalonbay Cmntys Inc 1,168,748 2.18 12.07 Great Plains Energy 1,092,416 2.03 12.55 Pg&E Corp 1,524,960 2.84 8.37 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret URS Corp New 1,336,504 2.49 -10.77 Darden Restaurants I 1,512,648 2.82 -5.64 Endurance Specialty 990,472 1.84 -7.65 Seacor Hldgs Inc 1,123,460 2.09 -5.24 Qep Res Inc 1,148,160 2.14 -3.89 Bemis Inc 1,087,733 2.03 -3.53 Murphy Oil Corp 1,433,208 2.67 -2.58 Brunswick Corp 2,322,018 4.32 -1.44 Lincoln Natl Corp In 2,115,979 3.94 -1.54 Sonoco Prods Co 1,334,791 2.49 -0.94 103 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 6.58 7.19 1..53 4.17 0,37 0.01 0,37 Materials 7.89 5.41 0,05 4.05 0,32 0,03 0, Industrials 21.85 11.75 5.39 3.23 0.47 0,20 0.27 Consumer Discretionary 16.56 9.05 1.51 0,34 0.31 0,42 ('),I.I. Consumer Staples 0.90 2.84 11.95 7.18 0.04 0,04 0.00 Health Care 4.49 8.67 5.40 6.91 0,07 0,07 0,14 Financials 27.42 32.32 3.18 5.26 0,57 0.00 0,57 Information Technology 6.04 10.64 7.55 6.85 0.04 0,08 0,03 Telecom. Services 0.00 0.67 9.14 0.00 0,03 0,03 Utilities 8.27 11.46 8.29 9.21 0,08 0,13 0 100.00 100.00 3.69 5.22 0,55 0,93 1.. 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 0.09% [Actual Return 3.78%] - [Buy Hold Return 3.69%] 104 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 3/14 %Allocation %Return %Variance Energy 6.58 -1.53 7.19 = 4.17 -0.37 Materials 7.89 -0.05 5.41 4.05 -0.35 Industrials 11.75 1 85 5.39 0.27 Con.Discretionary 9.05 16.56 -0.34 1.51 -0.11 Consumer Staples 0.90 11.95 0.00 2.84 76.91 Health Care 49 -0.14 8.67 Financials MENNENMZ7.42 .18 -0.57 32.32 5.26 Infomation Tech. .04 7.55 -0.03 10.64 6.85 Telecom. Services 0.00 -0.03 0.67 9.14 27 8.29 -0.20 Utilities 11.46 -59.21 ® Wedge Capital Mgmt ❑ R Mid Cap V 105 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 3/31/14 Portfolio Performance 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 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 0.40 0.40 27.85 16.41 26.33 10.07 10.89 R2000 1.12 1.12 24.90 13.19 24.31 8.53 9.87 Asset Growth(5000) Beginning Market Value 69,898 69,898 54,893 46,345 48,404 47,867 29,988 Net Contributions&Withdrawals -1 -1 -3 -2,008 -41,011 -41,011 -41,011 Gain/Loss+Income 279 279 15,286 25,839 62,783 63,320 81,198 Ending Market Value 70,176 70,176 70,176 70,176 70,176 70,176 70,176 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Cepheid Inc Health Care 2.20 Energy 3.32 Grand Canyon Ed Inc Consumer Discretionary 2.02 Materials 2.13 Ultimate Software Gr Information Technology 1.78 Industrials 20.42 Portfolio Recovery A Financials 1.77 Consumer Discretionary 15.63 National Instrs Corp Information Technology 1.75 Consumer Staples 4.34 Maximus Inc Information Technology 1.69 Health Care 15.03 Power Integrations I Information Technology 1.59 Financials 14.30 Rollins Inc Industrials 1.52 Information Technology 23.60 Mednax Inc Health Care 1.51 Telecom Services 0.34 Chemed Corp New Health Care 1.47 Utilities 0.89 Holdings and allocations only include SMA accounts. 106 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 3/31/14 Asset Allocation($000) Cash&Equiv $2,048 2.92% Domestic Equity $68,128 97.08% Risk/Return Analysis Periods from 8/03 to 3/14 Alpha 0.43 Beta 0.92 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 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio S Small Cap Equity Comp 10.89 18.54 0.50 0.17 1 R2000 9.87 19.39 0.43 T" 91-Day Treasury Bill 1.62 0.55 0.00 Holdings and allocations only include SMA accounts. 107 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% 25% 20% 1__ 15% --- -- 00 --- 10% 00 -- --- --- 5% --- 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 4.19 31.75 26.11 17.98 20.19 29.95 15.02 11.57 11.69 12.55 13.09 1st Qt 2.32 28.15 23.77 15.57 18.17 27.71 13.62 9.49 9.73 11.16 11.11 Median 1.69 25.70 21.91 14.23 17.10 25.60 11.60 8.32 8.38 10.13 10.24 3rd Qt 0.98 23.48 19.92 13.16 16.34 24.04 10.84 7.08 7.16 9.11 9.58 Low -0.95 17.73 15.39 10.43 13.33 21.81 9.09 6.19 6.51 8.27 8.57 S Small Cap Equity Comp Net Ret 0.40 27.85 22.96 16.41 19.54 26.33 13.42 8.97 8.85 10.40 10.07 Rank 86 29 33 14 9 40 28 31 42 38 57 1 82000 Net Ret 1.12 24.90 20.52 13.19 16.21 24.31 10.85 7.08 6.93 8.88 8.53 Rank 70 65 71 74 79 69 74 75 81 86 96 108 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% - -10% - --- -20% -30% -40% --- -50 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.19 46.68 23.01 6.42 33.78 62.14 -22.32 11.23 24.68 14.61 27.43 1st Qt 2.32 42.38 19.50 -0.45 29.97 36.57 -30.16 5.97 20.65 10.27 23.80 Median 1.69 39.13 16.73 -2.61 27.13 30.30 -33.33 0.33 18.17 7.95 20.87 3rd Qt 0.98 35.19 14.59 -5.09 24.61 27.04 -37.07 -4.32 15.45 4.67 18.67 Low -0.95 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 0.40 42.51 17.61 2.07 29.27 33.51 -38.63 3.27 17.40 7.21 15.69 Rank 86 23 39 13 30 41 84 30 56 60 87 1 82000 Net Ret 1.12 38.82 16.34 -4.17 26.85 27.19 -33.80 -1.55 18.35 4.56 18.32 Rank 70 52 59 69 54 73 59 63 46 80 78 109 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 4 4 12 13 Positive Periods 4 4 9 9 16 16 30 29 Up Market Capture 1.12 1.01 1.00 0.98 Down Market Capture 0.77 0.82 0.89 Batting Average 0.75 0.67 0.70 0.62 Worst Quarter 0.40 1.12 1 8,74 21,86 1 8,74 71,86 25,65 26,12 Best Quarter 11.27 10.21 15.86 15.48 20.74 20.68 20.74 20.68 Worst 4 Quarters 27.85 24.90 3.79 7,06 2.07 4,17 38,63 37,50 Best 4 Quarters 27.85 24.90 42.51 38.82 57.55 62.77 57.55 62.77 Standard Deviation 9.68 8.74 18.24 20.04 18.57 20.35 18.94 20.30 Beta 1.10 0.91 0.91 0.92 Alpha 0.09 0.97 0.90 0.43 R-Squared 0.98 0.99 0.98 0.96 Sharpe Ratio 2.87 2.84 0.90 0.65 1.41 1.19 0.51 0.42 Treynor Ratio 25.36 17.98 28.88 10.63 Tracking Error 2.05 2.68 3.14 4.30 Information Ratio 1.24 0.95 0.42 0.17 -j 110 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 3/31/14 18.9 ro 18.0 �s 17.1 . 16.2 0 15.3 •• • � t 14.4 • .� .• •. Median Ib b • 13.5 . • . Return N • � . 12.6 . Q 11.7 10.9 • • 10.0 13.0 14.4 15.8 17.2 18.6 20.0 21.4 22.8 24.2 25.6 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 16.41 14 18.24 12 1 R2000 13.19 74 20.04 50 Median 14.23 20.04 5 Years Ending 3/31/14 31.0 ro 30.0 • 29.0 • 28.0 •• •. • 0 27.0 ..r • 26.0 • . • Median 25.0 • • Return • 24.0 . •� ; • 23.0 22.0 • •. 21.0 • 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 S Small Cap Equity Comp 26.33 40 18.57 17 1 R2000 24.31 69 20.35 49 Median 25.60 20.40 111 City of Clearwater Employees Pension Fund Riverbridge Partners as of 3/31/14 Portfolio Performance 30.0 25.0 20.0 15.0 10.0 INN 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 EM Riverbridge Partners R2000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/10 Riverbridge Partners -0.96 -0.96 26.63 16.94 22.46 R2000G 0.48 0.48 27.19 13.60 19.68 Asset Growth(5000) Beginning Market Value 34,624 34,624 27,083 21,449 16,876 Net Contributions&Withdrawals 0 0 -1 -4 -4 Gain/Loss+Income -331 -331 7,211 12,847 17,420 Ending Market Value 34,292 34,292 34,292 34,292 34,292 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Cepheid Inc Health Care 4.54 Energy 0.00 Grand Canyon Ed Inc Consumer Discretionary 4.15 Materials 0.00 Ultimate Software Gr Information Technology 3.67 Industrials 20.02 Portfolio Recovery A Financials 3.64 Consumer Discretionary 14.50 Maximus Inc Information Technology 3.48 Consumer Staples 3.81 Rollins Inc Industrials 3.12 Health Care 21.63 Mednax Inc Health Care 3.11 Financials 5.70 Chemed Corp New Health Care 3.03 Information Technology 34.34 Ritchie Bros Auction Industrials 3.02 Telecom Services 0.00 United Nat Foods Inc Consumer Staples 2.96 Utilities 0.00 112 City of Clearwater Employees Pension Fund Riverbridge Partners as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,185 3.46% Domestic Equity $33,107 96.54% Risk/Return Analysis Periods from 9/10 to 3/14 Alpha 1.50 Beta 0.78 R-Squared 0.95 24.0 22.0 $ 20.0 18.0 16.0 14.0 12.0 ab 10.0 N 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 22.46 13.97 1.60 0.25 1 R2000G 19.68 16.98 1.15 T" 91-Day Treasury Bill 0.10 0.03 0.00 113 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 40% 35% 30% ------ 25% ------ 20% 10% ------ 5% ----- 0 ------ ------ -5% Last Last 2 Last 3 3/14 Last Last 2 Last 3 Qtr Qtrs Qtrs YTD Year Years Years High 3.83 13.74 29.36 3.83 36.44 26.13 19.09 1st Qt 1.81 10.87 25.53 1.81 31.05 23.50 16.97 Median 0.73 8.90 22.15 0.73 27.58 21.16 14.69 3rd Qt -0.88 6.34 19.52 -0.88 23.97 18.14 12.53 Low -3.48 3.79 14.73 -3.48 15.16 12.88 9.52 R Riverbridge Partners Net Ret -0.96 6.74 20.72 -0.96 26.63 23.65 16.94 Rank 77 70 65 77 57 21 26 1 R2000G Net Ret 0.48 8.70 22.62 0.48 27.19 20.69 13.60 Rank 54 52 47 54 52 59 67 114 City of Clearwater Employees Pension Fund Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 55% 50% 45% ----------- 40% 35%30% U 25% 20% 15% R---------- 5% R �r--------- -5% --- ------- -10 3/31/14 YTD 2013 2012 2011 High 3.83 54.25 22.18 7.69 1st Qt 1.81 46.67 18.31 3.06 Median 0.73 42.88 15.37 -0.65 3rd Qt -0.88 37.73 13.11 -3.49 Low -3.48 29.42 6.53 -8.91 R Riverbridge Partners Net Ret -0.96 43.50 17.83 4.27 Rank 77 48 31 21 1 R2000G Net Ret 0.48 43.29 14.59 -2.92 Rank 54 49 63 71 115 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Small Growth Portfolios 26% 24% R 22% R 20% 1 18% R 1 16% 14%- 1 12% 10% Jun I I Mar I I Dee 10 Sep 10 Jul, 10 Mar 14 Dee 13 Sep 13 Jul, 13 Mar 13 High 19.09 21.48 25.06 25.55 19.63 I st Qt 1 6.97 1 9.77 23.07 22.94 1 8.00 Median 14.71 17.47 20.62 21.06 15.66 3rd Qt 13.33 15.95 19.15 18.95 14.22 Low 10.70 14.40 17.26 16.95 11.91 R Riverbridge Partners Net Ret 1 6.94 20.81 23.94 Rank 26 II 16 1 R2000G Net Ret 1 3.60 1 6.81 1 9.94 Rank 70 57 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 MENEM 0.6 -0.4 0.9 2.0% -1.4 -1.4 3.3 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.R2000G ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 116 City of Clearwater Employees Pension Fund Risk Measure Summary Riverbridge Partners Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 2 3 2 3 Positive Periods 3 4 10 9 12 11 Up Market Capture 0.98 0.88 0.91 Down Market Capture 0.51 0.51 Batting Average 0.50 0.50 0.43 Worst Quarter 0,96 0.48 15,89 22,26 15,89 22,26 Best Quarter 13.10 12.80 13.13 14.99 16.39 17.11 Worst 4 Quarters 26.63 27.19 4.57 2,73 4.27 2,92 Best 4 Quarters 26.63 27.19 43.50 43.29 43.50 43.29 Standard Deviation 11.72 10.72 16.20 20.76 16.37 20.51 Beta 1.05 0.76 0.78 Alpha 0,39 1.42 1.50 R-Squared 0.98 0.94 0.95 Sharpe Ratio 2.27 2.53 1.04 0.65 1.37 0.95 Treynor Ratio 25.36 22.08 28.53 Tracking Error 2.20 6.27 5.81 Information Ratio 0,1.3 0.32 0.25 -j 117 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Growth Portfolios 3 Years Ending 3/31/14 21.9 20.5 19.1 • 17.7 ! • W • • N • • ' w 16.3 ' o 14.9 ti Median 'O 2. • Return 13.5 •. 12.1 • 10.7 9.4 8.0 13.0 14.4 15.8 17.2 18.6 20.0 21.4 22.8 24.2 25.6 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Riverbridge Partners 16.94 26 16.20 6 1 R2000G 13.60 67 20.76 61 Median 14.69 20.17 118 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 3/14 Portfolio R2000G Total Number Of Securities 48 1,190 Equity Market Value 33,107,199 Average Capitalization $(000) 2,554,236 2,098,771 Median Capitalization $(000) 2,005,852 854,775 Equity Segment Yield 0.45 0.61 Equity Segment P/E -Average 45.12 59.62 Equity Segment P/E - Median 27.62 18.98 Equity Segment Beta 0.94 1.26 Price/Book Ratio 4.08 3.92 Debt/Equity Ratio 14.03 35.54 Five Year Earnings Growth 7.79 12.81 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Cepheid Inc 1,501,442 4.54 10.40 Grand Canyon Ed Inc 1,374,568 4.15 7.11 Ultimate Software Gr 1,215,190 3.67 -10.59 Portfolio Recovery A 1,206,381 3.64 9.50 Maximus Inc 1,151,108 3.48 2.07 Rollins Inc 1,032,152 3.12 0.21 Mednax Inc 1,028,248 3.11 16.11 Chemed Corp New 1,003,182 3.03 17.02 Ritchie Bros Auction 998,765 3.02 5.84 United Nat Foods Inc 980,114 2.96 -5.93 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Athenahealth Inc 19.14 Pegasystems Inc -28.18 Power Integrations I 18.04 Financial Engines In -26.84 Chemed Corp New 17.02 Cass Information Sys -23.14 Ebix Com Inc 16.54 Stratasys Ltd -21.24 Mednax Inc 16.11 Ipc the Hospitalist -17.36 Cepheid Inc 10.40 Fresh Mkt Inc -17.04 Portfolio Recovery A 9.50 Digi Intl Inc -16.25 Verint Sys Inc 9.29 Echo Global Logistic -14.71 Bio-Reference Labs I 8.38 Tile Shop Hldgs Inc -14.50 Grand Canyon Ed Inc 7.11 Ultimate Software Gr -10.59 119 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 3/14 Portfolio Russell 2000 Growth Total Number Of Securities 48 1,190 Equity Market Value 33,107,199 Average Capitalization $(000) 2,554,236 2,098,771 Median Capitalization $(000) 2,005,852 854,775 Equity Segment Yield 0.45 0.61 Equity Segment P/E -Average 45.12 59.62 Equity Segment P/E - Median 27.62 18.98 Equity Segment Beta 0.94 1.26 Price/Book Ratio 4.08 3.92 Debt/Equity Ratio 14.03 35.54 Five Year Earnings Growth 7.79 12.81 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Chemed Corp New 1,003,182 3.03 17.02 Mednax Inc 1,028,248 3.11 16.11 Cepheid Inc 1,501,442 4.54 10.40 Power Integrations I 724,896 2.19 18.04 Athenahealth Inc 630,705 1.91 19.14 Portfolio Recovery A 1,206,381 3.64 9.50 Grand Canyon Ed Inc 1,374,568 4.15 7.11 Ritchie Bros Auction 998,765 3.02 5.84 Mobile Mini 920,316 2.78 5.69 Verint Sys Inc 547,673 1.65 9.29 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Financial Engines In 680,147 2.05 -26.84 Ultimate Software Gr 1,215,190 3.67 -10.59 Pegasystems Inc 452,025 1.37 -28.18 Stratasys Ltd 596,756 1.80 -21.24 Cass Information Sys 452,903 1.37 -23.14 National Instrs Corp 946,397 2.86 -9.93 Ipc the Hospitalist 528,837 1.60 -17.36 Tile Shop Hldgs Inc 508,537 1.54 -14.50 Techne Corp 620,213 1.87 -9.50 United Nat Foods Inc 980,114 2.96 -5.93 120 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 0.00 3.79 2.57 0.00 0,08 0,08 Materials 0.00 5.11 0.45 0.00 0.00 0.00 Industrials 18.81 15.38 0,33 1.60 0,36 0.04 0, Consumer Discretionary 11.99 16.67 0,12 4.,33 0.57 0.25 0.81 Consumer Staples 4.10 4.83 8,67 1.66 0,42 1 0,4 Health Care 21.67 21.28 6.35 4.31 0.44 0.01 0.46 Financials 6.03 7.28 7,14 0,98 0,37 0.02 0, Information Technology 37.39 24.63 5,44 0,09 2,00 0,07 2,07 Telecom. Services 0.00 0.91 1.77 0.00 �'�.�'�1 1. Utilities 0.00 0.12 0.90 0.00 0.00 0.00 100.00 100.00 1..52 0.48 2,15 0.15 2,00 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 0.50% [Actual Return-1.02%] - [Buy Hold Return-1.52%] 121 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 3/14 %Allocation %Return %Variance Energy 00 13.79 2.57 -0.08 Materials 00 5.11 0.45 0.00 Industrials 118.81 -0.33 1 1.60 -0.33 .38 3 Con.Discretionary 1.99 67 -4.83 0.81 Consumer Staples 4.10 -8.67 -0.43 4.83 1 1.66 Health Care 21.67 6.35 0.46 21.28 "4.31 Financials 6.03 -7.14 -0.35 7.28 -0.98 37.39 -5.44 -2.07 Infomation Tech. 24.63 -0.09 Telecom. Services 0.00 -0.01 0.91 1.77 0.00 -0.00 Utilities 0.12 0.90 ® Riverbridge Partners ❑ R2000G 122 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 3/31/14 Portfolio Performance 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 EM 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 -0.96 -0.96 26.09 16.90 25.68 13.09 13.39 Russell 2000 1.12 1.12 24.90 13.42 23.77 8.27 9.92 Asset Growth(5000) Beginning Market Value 17,404 17,404 13,671 12,607 13,094 23,261 14,990 Net Contributions&Withdrawals 0 0 -1 -2,003 -12,003 -12,003 -12,003 Gain/Loss+Income -167 -167 3,567 61632 16,146 51978 14,250 Ending Market Value 17,236 17,236 17,236 17,236 17,236 17,236 17,236 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Manhattan Assocs Inc Information Technology 3.76 Energy 2.59 Kirby Expl Co. Industrials 3.21 Materials 4.11 Henry Jack&Assoc I Information Technology 3.10 Industrials 26.29 Morningstar Inc Consumer Discretionary 3.08 Consumer Discretionary 18.44 Dril-Quip Inc Energy 2.59 Consumer Staples 5.18 Sally Beauty Hldgs I Consumer Discretionary 2.57 Health Care 7.78 Moog Inc'a' Industrials 2.47 Financials 16.88 Dorman Products Inc Consumer Discretionary 2.43 Information Technology 18.75 Bio Rad Labs Inc Health Care 2.37 Telecom Services 0.00 Prosperity Bancshare Financials 2.18 Utilities 0.00 123 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 3/31/14 Asset Allocation($000) Cash&Equiv $566 3.28% Domestic Equity $16,671 96.72% Risk/Return Analysis Periods from 8/03 to 3/14 Alpha 1.31 Beta 0.74 R-Squared 0.92 14.0 13.0 12.0 11.0 10.0 9.0 8.0 ab 7.0 N 6.0 5.0 Q 4.0 3.0 2.0 1.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio t Atlanta Capital Mgmt 13.39 16.35 0.72 0.32 1 Russell 2000 9.92 19.35 0.43 T" 91-Day Treasury Bill 1.62 0.55 0.00 124 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 35% 30% 25% lo 20% 15% --- 1 - 10% 00 --- --- 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 4.19 31.75 26.11 17.98 20.19 29.95 15.02 11.57 11.69 12.55 13.09 1st Qt 2.32 28.15 23.77 15.57 18.17 27.71 13.62 9.49 9.73 11.16 11.11 Median 1.69 25.70 21.91 14.23 17.10 25.60 11.60 8.32 8.38 10.13 10.24 3rd Qt 0.98 23.48 19.92 13.16 16.34 24.04 10.84 7.08 7.16 9.11 9.58 Low -0.95 17.73 15.39 10.43 13.33 21.81 9.09 6.19 6.51 8.27 8.57 t Atlanta Capital Mgmt Net Ret -0.96 26.09 20.84 16.90 19.74 25.68 15.43 12.99 12.32 13.14 13.09 Rank 95 46 61 10 8 49 3 1 1 1 5 1 Russell 2000 Net Ret 1.12 24.90 21.44 13.42 15.18 23.77 10.04 5.72 6.29 8.10 8.27 Rank 70 65 55 67 82 76 87 99 96 95 99 125 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% -- 20% __ --- -- -- 10% --- -- _ 0% --- --- 1- -10% -- --- -20% -30% _ -40% --- -50% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.19 46.68 23.01 6.42 33.78 62.14 -22.32 11.23 24.68 14.61 27.43 1st Qt 2.32 42.38 19.50 -0.45 29.97 36.57 -30.16 5.97 20.65 10.27 23.80 Median 1.69 39.13 16.73 -2.61 27.13 30.30 -33.33 0.33 18.17 7.95 20.87 3rd Qt 0.98 35.19 14.59 -5.09 24.61 27.04 -37.07 -4.32 15.45 4.67 18.67 Low -0.95 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 -0.96 42.43 12.53 10.20 25.98 26.83 -19.52 6.91 16.22 6.23 20.24 Rank 95 23 89 1 66 77 1 19 65 62 58 1 Russell 2000 Net Ret 1.12 37.88 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 70 58 36 76 75 96 18 92 8 73 39 126 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Small Cap Neutral Portfolios 23% 22 21% 20 19% 18% __________ 1 17% 16% 15% 1______ I4% 13% ___1______ 12% 1 11% Jun I I Mar I I Dee 10 Sep 10 Jun 10 Mar 14 Dee 13 Scp 13 Jun 13 Mar 13 High 17.13 20.38 22.31 22.42 17.40 I st Qt 1 5.42 17.77 1 9.99 20.47 1 5.29 Median 14.23 16.68 19.02 19.32 14.23 3rd Qt 13.33 15.30 18.15 18.26 13.33 Low 11.41 13.59 15.78 16.49 11.73 t Atlanta Capital Mg-t Net Ret 1 6.90 20.88 22.31 22.59 17.70 Rank 7 I 5 3 3 1 Russell 2000 Net Ret 13.42 1 5.43 17.74 17.56 12.I I Rank 69 72 s0 84 88 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 25.0% 20.0% 15.0% 10.0% 3 5.4 5.0% 3.2 2.7 I.H 0.9 1.2 1. 0.0% 0.0 0.4 1)2 O.O 0.6 -0.1 -0.7 1.4 -5.0% -6.0 -I().()% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.Russell 2000 ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAaliZed) 127 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 3 3 4 4 12 12 Positive Periods 3 4 9 9 16 16 30 30 Up Market Capture 1.05 0.95 0.94 0.89 Down Market Capture 0.63 0.67 0.60 Batting Average 0.75 0.58 0.60 0.60 Worst Quarter 0,96 1.12 1. ,76 21,47 1. ,76 21,47 16,60 24,89 Best Quarter 10.72 10.21 16.42 15.97 18.00 22.70 18.00 22.70 Worst 4 Quarters 26.09 24.90 3.29 1,43 3.29 6.00 24,55 38,89 Best 4 Quarters 26.09 24.90 42.43 37.88 52.53 65.05 52.53 65.05 Standard Deviation 11.05 8.74 16.96 19.76 16.92 20.31 15.70 20.50 Beta 1.16 0.84 0.81 0.74 Alpha 0,61. 1.24 1.37 1.31 R-Squared 0.94 0.94 0.94 0.92 Sharpe Ratio 2.35 2.84 0.99 0.68 1.51 1.16 0.78 0.42 Treynor Ratio 22.50 20.09 31.56 16.64 Tracking Error 3.55 5.27 5.83 7.12 Information Ratio 0.32 0.47 0.14 0.32 -j 128 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 3/31/14 18.9 ro 18.0 �s 17.1 . 16.2 ' 0 15.3 •' • • � t 14.4 .� .• •. Median b • 13.5 . • . Return N • � 1 � 12.6 . Q 11.7 10.9 • • 10.0 13.0 14.4 15.8 17.2 18.6 20.0 21.4 22.8 24.2 25.6 27.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 16.90 10 16.96 8 1 Russell 2000 13.42 67 19.76 45 Median 14.23 20.04 5 Years Ending 3/31/14 31.0 ro 30.0 • 29.0 • 28.0 '• •. • 0 27.0 ..r • 26.0 . Median 25.0 • Return 24.0 . ; • 23.0 22.0 • '. 21.0 • j j 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 t Atlanta Capital Mgmt 25.68 49 16.92 5 1 Russell 2000 23.77 76 20.31 49 Median 25.60 20.40 129 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 3/14 Portfolio Russell 2000 Total Number Of Securities 64 2,011 Equity Market Value 16,670,613 Average Capitalization $(000) 2,856,546 1,885,908 Median Capitalization $(000) 2,403,644 725,004 Equity Segment Yield 1.00 1.29 Equity Segment P/E -Average 27.75 47.12 Equity Segment P/E - Median 26.68 16.97 Equity Segment Beta 0.99 1.29 Price/Book Ratio 3.35 2.27 Debt/Equity Ratio 21.87 41.41 Five Year Earnings Growth 9.22 9.64 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Manhattan Assocs Inc 626,091 3.76 19.27 Kirby Expl Co. 534,398 3.21 2.02 Henry Jack &Assoc I 516,561 3.10 -5.47 Morningstar Inc 513,551 3.08 1.41 Dril-Quip Inc 431,025 2.59 1.97 Sally Beauty Hldgs I 427,413 2.57 -9.36 Moog Inc 'a' 410,748 2.47 -3.58 Dorman Products Inc 405,270 2.43 5.33 Bio Rad Labs Inc 395,122 2.37 3.65 Prosperity Bancshare 362,965 2.18 4.74 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Knight Transn Inc 26.46 Cass Information Sys -23.14 Acuity Brands Inc 21.39 Hibbett Sports Inc -21.32 Manhattan Assocs Inc 19.27 Raven Inds Inc -20.15 Power Integrations I 18.04 Meridian Bioscience -17.16 Lancaster Colony Cor 13.31 Blackbaud Inc -16.56 Iberiabank Corp 12.16 Wolverine World Wide -15.75 J& J Snack Foods Co 8.70 Aaon Inc -12.77 Universal Health Rlt 6.98 Fair Isaac Corp -11.93 Pool Corporation 5.81 Balchem Corp -11.21 Dorman Products Inc 5.33 Clarcor Inc -10.88 130 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 3/14 Portfolio Russell 2000 Total Number Of Securities 64 2,011 Equity Market Value 16,670,613 Average Capitalization $(000) 2,856,546 1,885,908 Median Capitalization $(000) 2,403,644 725,004 Equity Segment Yield 1.00 1.29 Equity Segment P/E -Average 27.75 47.12 Equity Segment P/E - Median 26.68 16.97 Equity Segment Beta 0.99 1.29 Price/Book Ratio 3.35 2.27 Debt/Equity Ratio 21.87 41.41 Five Year Earnings Growth 9.22 9.64 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Manhattan Assocs Inc 626,091 3.76 19.27 Knight Transn Inc 268,539 1.61 26.46 Power Integrations I 354,949 2.13 18.04 Acuity Brands Inc 250,822 1.51 21.39 Iberiabank Corp 312,588 1.88 12.16 J & J Snack Foods Co 287,046 1.72 8.70 Lancaster Colony Cor 182,933 1.10 13.31 Dorman Products Inc 405,270 2.43 5.33 Forward Air Corp 333,375 2.00 5.29 Prosperity Bancshare 362,965 2.18 4.74 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Blackbaud Inc 303,485 1.82 -16.56 Raven Inds Inc 247,688 1.49 -20.15 Hibbett Sports Inc 217,390 1.30 -21.32 Sally Beauty Hldgs I 427,413 2.57 -9.36 Fair Isaac Corp 333,801 2.00 -11.93 Meridian Bioscience 218,772 1.31 -17.16 Wolverine World Wide 208,015 1.25 -15.75 Clarcor Inc 289,044 1.73 -10.88 Cass Information Sys 124,311 0.75 -23.14 Henry Jack &Assoc I 516,561 3.10 -5.47 131 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 2.54 5.46 1.97 4.77 0,07 O.1.1. 0,1.3 Materials 4.32 4.91 4,50 0.77 0,23 0.00 0,2 Industrials 27.98 14.46 0.39 0.88 0,1.4 0,03 0,1.7 Consumer Discretionary 18.33 13.75 3,56 3,35 0.04 0,21. 0,24. Consumer Staples 3.80 3.80 3.28 1.74 0.06 0.00 0.06 Health Care 7.70 13.24 7,15 3.94 0,85 0,1.6 1,0 1. Financials 16.45 22.76 0.54 1.42 0,1.4 0,02 0,1.6 Information Technology 18.88 17.84 € ...�.71. 0.35 ..0.20 1. 0.21. Telecom. Services 0.00 0.75 2.81 0.00 �'�.�'�1 1. Utilities 0.00 3.01 5.37 0.00 0,13 100.00 100.00 1,16 1.12 1,61. 0,67 2,28 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 0.21% [Actual Return-0.95%] - [Buy Hold Return-1.16%] 132 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 3/14 %Allocation %Return %Variance Energy 54 97 5.46 4.77 -0.18 Materials 4.32 -4.50 -0.23 4.91 0.77 Industrials 14.46 27 98 0.88 -0.17 Con.Discretionary 13.18 33 -3.35 -0.24 Consumer Staples 3.80 111.74 3.28 0.06 3.80 Health Care Z;l -7.15 -1.01 3.24 3.94 Financials 45 0.54 -0.16 22.76 1.42 18.88 -0.71 -0.21 Infomation Tech. EMM?17.84 0.35 Telecom. Services 0.00 -0.01 0.75 2.81 Utilities 00 13.01 F= 5.37 ® Atlanta Capital Mgmt ❑ Russell 2000 133 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 3/31/14 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 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 4.35 4.35 31.88 14.92 27.94 9.29 10.50 R2000V 1.78 1.78 22.64 12.73 23.32 8.07 9.73 Asset Growth(5000) Beginning Market Value 17,870 17,870 14,140 12,289 9,083 24,612 15,001 Net Contributions&Withdrawals 0 0 -1 -2 -6,002 -6,002 -6,002 Gain/Loss+Income 777 777 4,508 61360 15,565 37 9,647 Ending Market Value 18,647 18,647 18,647 18,647 18,647 18,647 18,647 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Dupont Fabros Techno Financials 2.44 Energy 10.00 Diamond Foods Inc Consumer Staples 2.09 Materials 4.17 Bbcn Bancorp Inc Financials 2.02 Industrials 15.83 Iberiabank Corp Financials 1.73 Consumer Discretionary 15.12 Supervalu Inc Consumer Staples 1.68 Consumer Staples 4.55 Callon Pete Co Del Energy 1.57 Health Care 9.69 First Merchants Corp Financials 1.49 Financials 27.48 Hci Group Inc Financials 1.42 Information Technology 8.63 Ruths Chris Steak Hs Consumer Discretionary 1.42 Telecom Services 1.24 7etblue Awys Corp Industrials 1.39 Utilities 3.29 134 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 3/31/14 Asset Allocation($000) Cash&Equiv $297 1.59% Domestic Equity $18,350 98.41% Risk/Return Analysis Periods from 8/03 to 3/14 Alpha 0.25 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 10.50 21.17 0.42 0.13 1 R2000V 9.73 19.36 0.42 T" 91-Day Treasury Bill 1.62 0.55 0.00 135 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 3/14 40% 35% 30% 25% 20% 15% --- - -- r- - 10% 5% 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 4.35 35.90 26.39 18.86 25.74 36.56 17.22 14.30 11.35 12.42 12.39 1st Qt 2.79 28.71 24.10 15.72 18.45 29.49 14.40 9.59 10.01 11.46 11.92 Median 1.73 24.16 21.35 14.53 17.33 26.78 12.78 9.04 9.54 10.68 11.24 3rd Qt 1.27 22.22 20.09 13.61 15.83 25.05 11.66 8.46 8.85 10.38 10.54 Low 0.08 19.54 16.75 11.42 13.78 23.12 10.54 6.39 7.18 10.10 9.29 s Systematic Financial Mgt Net Ret 4.35 31.88 23.97 14.92 18.35 27.94 12.49 7.86 8.14 10.15 9.29 Rank 5 16 27 48 30 34 63 83 90 91 99 1 R2000V Net Ret 1.78 22.64 20.34 12.73 14.66 23.32 9.70 5.44 6.05 7.88 8.07 Rank 46 67 65 86 84 89 96 100 100 100 100 136 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% --- 30% - 20% -- -- 10% --- --- 0% --- --- -10% 0 --- 1 -20% -30% --- -40% -50% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.35 48.64 23.48 2.62 33.79 53.30 -23.82 9.59 23.29 13.78 28.23 1st Qt 2.79 41.33 18.39 1.43 28.77 36.69 -26.01 2.19 20.94 10.94 24.36 Median 1.73 36.54 16.68 -1.73 26.05 33.41 -29.30 -1.88 19.13 8.98 21.39 3rd Qt 1.27 32.97 11.73 -4.67 24.87 26.61 -32.93 -4.31 15.90 7.48 18.37 Low 0.08 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 4.35 40.72 23.50 -9.91 35.50 35.72 -40.71 0.49 18.61 8.27 11.42 Rank 5 27 4 96 2 41 96 37 55 60 100 1 R2000V Net Ret 1.78 34.50 18.05 -5.50 24.51 20.57 -28.92 -9.77 23.48 4.70 22.25 Rank 46 62 31 78 82 95 48 92 1 88 33 137 City of Clearwater Employees Pension Fund March 3 11 2014 Performance Comparison Total Returns of Small Value Portfolios 24% 23% 22% 21% 20 19% 18% 17% 1 16% s 1 15% s 14% 1 13% 1 12% 1 11% Jun I I Mar I I Dec 10 Sep 10 Jun 10 Mar 14 Dcc 13 Scp 13 Jun 13 Mar 13 High 18.86 22.75 20.58 22.32 17.41 I st Qt 1 6.76 1 8.12 1 9.48 20.03 1 5.83 Median 14.53 16.88 18.87 19.10 14.26 3rd Qt 13.61 15.48 17.27 17.84 13.40 Low 11.42 11.92 14.93 16.14 11.43 s Systematic Financial Mgt Net Ret 14.92 1 6.12 1 8.88 20.75 14.15 Rank 48 66 48 15 53 1 R2000V Net Ret 12.73 14.48 1 6.56 17.33 12.I I Rank 85 79 80 79 85 Systematic Financial Mgt Value Added Analysis - Net of Fee 25.0% 20.0% 15.0% 10.0% 5.� 5.0% 3.9 2.6 2.9 2.5 _.5 ME O. 1.1 1.2 0.0% O.O -0.3 -2.3 -2.4 -5.0% -0 7.4 -10.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.R2000V ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 138 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 3 3 4 4 14 12 Positive Periods 4 4 9 9 16 16 28 30 Up Market Capture 1.41 1.33 1.27 1.05 Down Market Capture 1.34 1.24 1.00 Batting Average 1.00 0.67 0.75 0.60 Worst Quarter 4.35 1.78 27.21) 21,47 27,29 71.47 27,29 24,89 Best Quarter 10.64 9.29 20.97 15.97 25.37 22.70 25.37 22.70 Worst 4 Quarters 31.88 22.64 1.76 1,43 11,58 6,00 40,88 38,89 Best 4 Quarters 31.88 22.64 44.73 34.50 74.73 65.05 74.73 65.05 Standard Deviation 6.02 7.45 25.30 19.54 24.61 20.24 23.25 20.44 Beta 1.03 1.28 1.20 1.06 Alpha 1.76 0,15 0.25 R-Squared 0.93 0.98 0.98 0.86 Sharpe Ratio 5.29 3.03 0.59 0.65 1.13 1.15 0.40 0.41 Treynor Ratio 30.94 11.59 23.14 8.84 Tracking Error 1.51 6.62 5.54 8.80 Information Ratio 5.19 0.47 0.87 0.13 -j 139 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 3/31/14 18.9 ro 18.0 17.1 •� • 16.2 • • . 0 15.3 14.4 median b • • . . • Return N 13.5 .a • 12.6 •• Q 11.7 10.9 • 10.0 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 s Systematic Financial Mgt 14.92 48 25.30 97 1 R2000V 12.73 86 19.54 35 Median 14.53 20.61 5 Years Ending 3/31/14 35.9 ro 34.1 32.3 . • • 30.5 • 0 28.7 26.9 . • Median a p• Return N 25.1 .. 23.3 • �• • ' c •' Q 21.5 • . • 19.8 18.0 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 s Systematic Financial Mgt 27.94 34 24.61 86 1 R2000V 23.32 89 20.24 28 Median 26.78 21.02 140 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 3/14 Portfolio R2000V Total Number Of Securities 128 1,409 Equity Market Value 18,350,011 Average Capitalization $(000) 1,346,067 1,664,975 Median Capitalization $(000) 853,604 617,389 Equity Segment Yield 1.15 1.99 Equity Segment P/E -Average 79.15 38.63 Equity Segment P/E - Median 16.42 15.81 Equity Segment Beta 1.43 1.33 Price/Book Ratio 2.02 1.57 Debt/Equity Ratio 40.29 47.34 Five Year Earnings Growth 10.74 6.37 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Dupont Fabros Techno 447,702 2.44 -2.59 Diamond Foods Inc 382,484 2.09 35.18 Bbcn Bancorp Inc 370,653 2.02 3.85 Iberiabank Corp 317,429 1.73 12.16 Supervalu Inc 308,997 1.68 -6.17 Callon Pete Co Del 287,510 1.57 28.18 First Merchants Corp 273,746 1.49 -4.70 Hci Group Inc 261,170 1.42 -31.51 Ruths Chris Steak Hs 260,237 1.42 -14.58 Jetblue Awys Corp 255,486 1.39 1.64 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Ballard Pwr Sys Inc 190.43 Employers Holdings I -35.89 Tekmira Pharmaceutic 169.64 Hci Group Inc -31.51 Endocyte Inc 122.73 Hhgregg Inc -31.21 Horizon Pharma Inc 98.43 Gray Television Inc -30.31 Gt Advanced Technolo 95.53 Roundys Inc -30.22 Penn Va Corp 85.47 Cross Ctry Healthcar -19.14 Arotech Corp 78.22 Pbf Energy Inc -17.01 Magicjack Vocaltec L 78.10 Affymetrix Inc -16.80 Fuelcell Energy Inc 75.89 Checkpoint Sys Inc -14.90 Basic Energy Svcs In 73.70 American Woodmark Co -14.85 141 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 3/14 Portfolio R2000V Total Number Of Securities 128 1,409 Equity Market Value 18,350,011 Average Capitalization $(000) 1,346,067 1,664,975 Median Capitalization $(000) 853,604 617,389 Equity Segment Yield 1.15 1.99 Equity Segment P/E -Average 79.15 38.63 Equity Segment P/E - Median 16.42 15.81 Equity Segment Beta 1.43 1.33 Price/Book Ratio 2.02 1.57 Debt/Equity Ratio 40.29 47.34 Five Year Earnings Growth 10.74 6.37 Ten Best Contributors Market Value % of Portfolio Quarterly Ret Horizon Pharma Inc 196,182 1.07 98.43 Tekmira Pharmaceutic 87,035 0.47 169.64 Diamond Foods Inc 382,484 2.09 35.18 Gt Advanced Technolo 129,154 0.70 95.53 Basic Energy Svcs In 165,145 0.90 73.70 Penn Va Corp 132,487 0.72 85.47 Magicjack Vocaltec L 139,057 0.76 78.10 Ballard Pwr Sys Inc 54,780 0.30 190.43 Endocyte Inc 79,168 0.43 122.73 Maxwell Technologies 125,324 0.68 66.28 Ten Worst Contributors Market Value % of Portfolio Quarterly Ret Hci Group Inc 261,170 1.42 -31.51 Gray Television Inc 237,214 1.29 -30.31 Hhgregg Inc 147,158 0.80 -31.21 Roundys Inc 142,244 0.78 -30.22 Pbf Energy Inc 247,035 1.35 -17.01 Employers Holdings I 108,231 0.59 -35.89 Ruths Chris Steak Hs 260,237 1.42 -14.58 Donnelley R R& Sons 234,490 1.28 -10.55 Cumulus Media Inc 218,183 1.19 -10.61 Parker Drilling Co 177,250 0.97 -12.79 142 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 8.94 7.23 8.99 6.00 0.27 0.07 0.34 Materials 5.88 4.69 5,08 1.14 0,37 �'�.�'�1 0,37 Industrials 12.21 13.49 3.51 �'�.�'�1. 0.43 0.02 0.45 Consumer Discretionary 13.35 10.65 4,86 0,87 0,53 0,07 0,61. Consumer Staples 6.58 2.71 5.39 1.89 0.23 0.00 0.23 Health Care 7.61 4.73 17.70 2.21 1.18 0.01 1.19 Financials 29.93 39.17 1,58 1.89 1.,04 1. 1,0 Information Technology 11.30 10.65 12.21 1.41 1.22 0.00 1.22 Telecom. Services 0.48 0.59 27.90 4.50 0.11 0.00 0.11 Utilities 3.73 6.07 8.68 5.46 0.12 0,09 0.03 100.00 100.00 3.35 1.80 1.62 0,07 1.55 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 1.08% [Actual Return 4.44%] - [Buy Hold Return 3.35%] 143 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 3/14 %Allocation %Return %Variance Energy 8.94 8.99 !!17.23 !?6.00 M 0.34 Materials 5.88 -5.08 4.69 1.14 -0.37 Industrials 1.21 -0.01 3.51 0.45 Con.Discretionary 10.65 13.35 -4.86 7 -0.61 Im Consumer Staples 6.58 5.39 0.23 :4.73.71 ;2.21 1 89 Health Care 7.61 17.70 1.19 Financials 3 -1.58 1 -1.05 ME 39.17 1 1.89 Infomation Tech. 11.30 12.21 1.22 10.65 1.41 Telecom. Services 0.48 INNINNIM 27.90 0.11 0.59 4.50 73 8.68 0.03 Utilities 6.07 5.46 ® Systematic Financial Mgt ❑ R2000V 144 City of Clearwater Employees Pension Fund International EQ Comp as of 3/31/14 Portfolio Performance 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 5/31/01 International EQ Comp 0.92 0.92 9.12 2.47 16.99 7.09 5.96 MSCI EAFE 0.77 0.77 18.06 7.72 16.56 7.01 6.08 Asset Growth(5000) Beginning Market Value 119,913 119,913 110,910 124,844 59,326 21,123 20,000 Net Contributions&Withdrawals -4 -4 -21 -9,579 -9,744 -9,744 -9,744 Gain/Loss+Income 1,099 1,099 10,119 51744 71,426 109,630 110,752 Ending Market Value 121,008 121,008 121,008 121,008 121,008 121,008 121,008 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Core Laboratories N Energy 4.55 Energy 22.44 Rio Tinto Plc Materials 3.21 Materials 18.45 Bhp Billiton Ltd Materials 3.19 Industrials 12.39 Canadian Pac Railway Industrials 3.09 Consumer Discretionary 4.50 Novartis A G Health Care 2.71 Consumer Staples 9.25 Arm Hldgs Plc Information Technology 2.54 Health Care 10.17 Agrium Inc Materials 2.24 Financials 14.87 Schlumberger Ltd Energy 2.19 Information Technology 7.22 Shire Health Care 2.18 Telecom Services 0.72 Icici Bk Ltd Financials 2.15 Utilities 0.00 Holdings and allocations only include SMA accounts. 145 City of Clearwater Employees Pension Fund International EQ Comp as of 3/31/14 Asset Allocation($000) Cash&Equiv $2,591 2.14% Intl Equity $118,417 97.86% Risk/Return Analysis Periods from 5101 to 3/14 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 5.96 18.42 0.23 -0.01 1 MSCI EAFE 6.08 17.96 0.24 T" 91-Day Treasury Bill 1.70 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 3/14 30% 25% 20% --- 1 15% --- 1-- 1 10% --- --- -- 5% --- --- --- --- -1-_ -1--- 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years High 4.67 27.73 21.93 14.37 15.67 24.90 10.21 8.69 10.01 12.29 13.09 1st Qt 2.11 20.39 16.97 10.28 11.56 19.91 5.80 5.41 6.95 9.49 10.00 Median 0.82 15.46 13.33 7.49 9.14 17.60 3.82 3.75 5.56 7.76 8.44 3rd Qt -0.40 8.40 9.36 4.21 6.87 15.75 2.32 2.22 4.21 6.44 7.15 Low -3.05 -4.49 -0.21 -3.67 1.35 12.53 -0.22 -0.12 2.07 4.21 5.30 I International EQ Comp Net Ret 0.92 9.12 8.43 2.47 6.30 16.99 2.85 1.98 4.18 6.36 7.09 Rank 47 73 77 81 80 56 66 78 75 75 75 1 MSCI EAFE Net Ret 0.77 18.06 14.88 7.72 8.50 16.56 2.47 1.78 3.97 6.11 7.01 Rank 52 35 35 46 57 61 72 80 78 79 77 147 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 100% 80% 60% 40% --- 20% --- --- -- -- - 3-- --- _ --- 0% --- -20% --- -40% -60% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 4.67 34.21 26.80 0.26 26.86 78.78 -24.04 41.33 37.26 38.35 32.12 1st Qt 2.11 27.08 21.29 -8.92 18.71 45.58 -39.49 18.96 30.37 21.13 23.92 Median 0.82 21.64 18.60 -12.44 13.17 35.69 -43.29 12.52 26.42 15.94 20.01 3rd Qt -0.40 15.88 15.86 -15.60 9.07 27.76 -47.85 8.13 22.27 11.99 16.56 Low -3.05 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 0.92 10.23 17.61 -15.04 18.37 57.93 -47.94 11.02 27.62 13.15 17.66 Rank 47 88 60 71 25 14 75 60 41 68 69 1 MSCI EAFE Net Ret 0.77 23.29 17.90 -11.73 8.21 32.46 -43.06 11.63 26.85 14.01 20.69 Rank 52 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 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 4 3 5 4 17 17 Positive Periods 3 3 8 9 15 16 34 34 Up Market Capture 0.76 0.85 1.07 1.01 Down Market Capture 6.39 1.23 1.09 1.02 Batting Average 0.25 0.33 0.50 0.47 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 9.12 18.06 14.16 13,38 15,04 13,38 47,94 46,2 0 Best 4 Quarters 9.12 18.06 17.66 24.29 71.81 55.20 71.81 58.14 Standard Deviation 10.94 11.15 18.00 16.74 22.57 20.60 21.90 20.81 Beta 0.85 1.04 1.07 1.02 Alpha 1,37 1,29 0,09 0,02 R-Squared 0.85 0.94 0.95 0.95 Sharpe Ratio 0.83 1.61 0.13 0.46 0.75 0.80 0.21 0.23 Treynor Ratio 10.68 2.29 15.86 4.47 Tracking Error 4.17 4.25 5.33 5.00 Information Ratio 1,9 1. 1,13 1. -j 149 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 3/31/14 20.0 ro 17.4 14.8 12.1 • • •s • ' S •• • .. ' ' • Median 6.9 • . • • Return b N 4.3 1.7 ' • Q -0.8 • . ' ' -3.4 -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 2.47 81 18.00 61 1 MSCI EAFE 7.72 46 16.74 34 Median 7.49 17.52 5 Years Ending 3/31/14 28.0 ro 26.0 24.0 � � s 22.0 •' 0 20.0 • • .• 18.0 • • • . Median • . . s 16.0 • • • '�� • . ..1 • Return 14.0 r .. . • .' Q 12.0 • • 10.0 8.0 8.0 10.6 13.2 15.8 18.4 21.0 23.6 26.2 28.8 31.4 34.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 16.99 56 22.58 71 1 MSCI EAFE 16.56 61 20.60 48 Median 17.60 20.86 150 City of Clearwater Employees Pension Fund Earnest Partners as of 3/31/14 Portfolio Performance 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -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 -0.05 -0.05 13.13 5.52 20.07 4.46 MSCI EAFE 0.77 0.77 18.06 7.72 16.56 1.57 Asset Growth(5000) Beginning Market Value 45,418 45,418 40,137 31,933 15,042 29,002 Net Contributions&Withdrawals -3 -3 -14 5,440 5,435 5,435 Gain/Loss+Income -24 -24 5,268 81018 24,914 10,954 Ending Market Value 45,391 45,391 45,391 45,391 45,391 45,391 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Core Laboratories N Energy 4.67 Energy 15.57 Arm Hldgs Plc Information Technology 4.55 Materials 12.11 Shire Health Care 3.91 Industrials 6.96 Icici Bk Ltd Financials 3.85 Consumer Discretionary 8.05 Denso Corp Consumer Discretionary 3.13 Consumer Staples 4.53 Icon Plc Health Care 2.91 Health Care 15.71 Roche Holdings Ag Health Care 2.90 Financials 22.86 Amadeus It Hldgs Sa Information Technology 2.79 Information Technology 12.92 Dnb Asa Financials 2.79 Telecom Services 1.29 Basf Se Materials 2.59 Utilities 0.00 151 City of Clearwater Employees Pension Fund Earnest Partners as of 3/31/14 Asset Allocation($000) Cash&Equiv $873 1.92% Intl Equity $44,518 98.08% Risk/Return Analysis Periods from 4/08 to 3/14 Alpha 0.78 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 4.46 22.77 0.18 0.59 1 MSCI EAFE 1.57 21.93 0.06 T" 91-Day Treasury Bill 0.28 0.17 0.00 152 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 3/14 30% 25% 20% ------- 1 15% 10, ------- e 10% ------- 5% -5% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 4.67 27.73 21.93 14.37 15.67 24.90 1st Qt 2.11 20.39 16.97 10.28 11.56 19.91 Median 0.82 15.46 13.33 7.49 9.14 17.60 3rd Qt -0.40 8.40 9.36 4.21 6.87 15.75 Low -3.05 -4.49 -0.21 -3.67 1.35 12.53 e Earnest Partners Net Ret -0.05 13.13 11.64 5.52 9.35 20.07 Rank 70 59 60 66 47 23 1 MSCI EAFE Net Ret 0.77 18.06 14.88 7.72 8.50 16.56 Rank 52 35 35 46 57 61 153 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 90% 80% 70% 60% 50% 30% 1 20% - ----- 10 --�---- 0% -- ---- -10% ------ -20% ------- -30 3/31/14 YTD 2013 2012 2011 2010 2009 High 4.67 34.21 26.80 0.26 26.86 78.78 1st Qt 2.11 27.08 21.29 -8.92 18.71 45.58 Median 0.82 21.64 18.60 -12.44 13.17 35.69 3rd Qt -0.40 15.88 15.86 -15.60 9.07 27.76 Low -3.05 3.63 6.67 -22.34 3.16 11.82 e Earnest Partners Net Ret -0.05 15.81 17.18 -6.88 16.61 55.54 Rank 70 75 64 18 32 16 1 MSCI EAFE Net Ret 0.77 23.29 17.90 -11.73 8.21 32.46 Rank 52 41 56 42 78 60 154 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20% 18% 16% 14% 12% 10% 8% 1 c 6% 1 4% 2 0% -2 -4% 3114 12113 9/13 6113 3113 High 14.37 15.49 16.40 17.54 14.00 1 st Qt 10.28 10.87 11.23 12.98 9.09 Median 7.49 8.19 8.76 10.56 6.43 3rd Qt 4.21 5.06 6.05 8.27 4.70 Low -3.67 -2.67 -1.11 2.17 0.54 e Easiest Partners Net Ret 5.52 8.1 1 8.30 11.05 8.12 Rank 66 51 56 42 32 1 MSCIEAFE Net Ret 7.72 8.66 8.97 10.55 5.49 Rank 46 44 46 50 61 Earnest Partners Value Added Analysis - Net of Fee 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 5, 3 3.9 4.1.4 3.1 1. 2.4 2.0 1.7 �1 = MEMO 3 0.3 -1.3 -1.2 1{ -0.8 -1.9 _2.4 -2.K -2.9 -5.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.MSCI EAFE ® Cumulative Value Added - 2 Yr Rolling Avg(AnnnahZed) 155 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 3/31/14 20.0 ro 17.4 14.8 12.1 • • •s • ' S •• • .. ' ' • Median 6.9 • . • • Return 4.3 ' . ' e• 1.7 ' • Q -0.8 • . ' ' -3.4 -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 5.52 66 18.12 62 1 MSCI EAFE 7.72 46 16.74 34 Median 7.49 17.52 5 Years Ending 3/31/14 28.0 ro 26.0 24.0 � � s 22.0 •' 0 20.0 • • .• • b• •• . • 18.0 • • • . Median • . . s 16.0 • • • '�� • . ..1 • Return 14.0 r .. . • .' Q 12.0 • • 10.0 8.0 8.0 10.6 13.2 15.8 18.4 21.0 23.6 26.2 28.8 31.4 34.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank e Earnest Partners 20.07 23 23.01 75 1 MSCI EAFE 16.56 61 20.60 48 Median 17.60 20.86 156 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 3/14 Portfolio MSCI EAFE Total Number Of Securities 52 905 Equity Market Value 44,517,841 Average Capitalization $(000) 41,540,037 61,587,255 Median Capitalization $(000) 20,510,564 8,942,759 Equity Segment Yield 2.14 3.19 Equity Segment P/E -Average 19.93 19.02 Equity Segment P/E - Median 18.37 18.77 Equity Segment Beta 1.01 1.00 Price/Book Ratio 1.86 1.71 Debt/Equity Ratio 88.36 90.84 Five Year Earnings Growth 8.19 6.82 Five Year Dividend Growth 5.09 4.55 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Core Laboratories N 2,072,110 4.67 4.20 Arm Hldgs Plc 2,016,373 4.55 -6.89 Shire 1,733,144 3.91 4.26 Icici Bk Ltd 1,704,784 3.85 17.84 Denso Corp 1,388,525 3.13 -8.13 Icon Plc 1,288,605 2.91 17.67 Roche Holdings Ag 1,285,176 2.90 10.24 Amadeus It Hldgs Sa 1,238,108 2.79 -2.06 Dnb Asa 1,236,253 2.79 -2.78 Basf Se 1,146,220 2.59 4.14 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Icici Bk Ltd 17.84 China Oilfield Servi -24.36 Icon Plc 17.67 Nippon Steel& Sumit -17.34 Statoil Asa 16.95 Getinge Ab -16.46 Bancolombia S A 16.04 Transocean Ltd Zug -15.25 Advanced Semiconduct 15.63 Honda Motor Co -13.86 Anhui Conch Cement 15.60 China Shipping Conta -12.91 Norsk Hydro Asa 11.74 Posco -11.01 Roche Holdings Ag 10.24 Mindray Medical Intl -9.75 Banco Bradesco S A 10.17 Daphne International -9.49 Ericsson L M Tel Co 8.91 Industrial& Commerc -9.01 157 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 3/14 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 7.97 7.97 2.65 6.06 1.76 0.00 1.11 1.11 0 17 0 20 0.0 3 0 40 Austria 0.27 0.27 1 45 1 5.7 4.98 4.98 2.33 2.35 0 07 61.04 0.19 0.08 Belgium 1.19 1.19 2.38 2.40 0.00 0.00 11.03 0.01 11.115. Bermuda 0.14 0.14 11 20 (r 5''1 0.00 0.00 0.02 61.1111 0.01 Brazil 0.00 0.00 2.20 0.00 3.01 3.01 0.00 0.07 0.07 Canada 0.00 0.00 1.41 0.00 744 744 0.00 0 10 0 10 Cayman Islands 0.20 0.20 6.57 6 6 1 0.51 0.00 94 6 (,)45 0 02 0.00 0 01 11.03 Channel Islands 0.42 0.42 1.25 0 60 0.00 0.00 0.00 0.00 0.01 China 0.06 0.06 5.55 5 62 7.65 0.00 1.'15 3 5 0 64 0.00 11.06 0 70 Colombia 0.00 0.00 1.15 0.00 16.04 16.04 0.00 0.18 0.19 Czech Republic 0.00 0.00 1.06 1.06 7.67 7.46 0.00 0 01 0.08 0.07 Denmark 1.18 1.18 16.55 16.48 0.00 0.00 11.211 0.01 018 Finland 0.91 0.91 0.21 0.23 0.00 0.00 0.00 0.01 0.01 France 9.40 9.40 3.17 3.19 1.70 1.70 5.89 5.91 0 25 0.07 0.05 0 15 Germany 9.43 9.43 019 017 2.49 2.49 4.12 4.14 0.01 0.06 0.11 0.17 Hong Kong 2.58 2.58 29-2, 7 °16 1.67 9.83 847 6.51 0.03 0 07 0 09 0 1'1 India 0.00 0.00 3.27 0.00 17.84 17.84 0.00 0.58 0.59 Ireland 0.29 0.29 14.20 14.22 2.48 0.00 17.67 17.67 0.31 0.00 0.09 0.40 Isle of Man 0.05 0.05 10 711 111.34 0.00 0.00 0.01 0.00 0.01 Israel 0.45 0.45 19.34 18.69 0.00 0.00 0 09 0.01 0 08 Italy 2.08 2.08 15.63 15.65 0.00 0.00 1y.33 0.02 11.31 Japan 20.95 20.95 732 542 10.91 10.91 10 16 5.11 0.73 0 10 03 0.32 Luxembourg 0.28 0.28 0.77 2.64 1.73 0.00 4 1') 7 56 0.01 61.1111 0 08 0 08 Mexico 0.02 0.02 13.15 13.89 0.00 0.00 0.00 0.00 0.00 Netherlands 3.28 3.28 0.53 0.52 4.79 0.00 4.20 4.20 0.01 0.03 0.18 0.21 New Zealand 0.12 0.12 10.97 17.00 0.00 0.00 0 01 0 01 0 02 Norway 0.66 0.66 3.42 4.80 5.70 5.65 0.97 6.04 0.18 0.03 014 0.06 Panama 0.00 0.00 1.83 0.00 5.15 5.15 0.00 0 09 0 09 Portugal 0.18 0.18 9.70 9.72 0.00 0.00 11.115. 0.00 11.115. Scotland 0.06 1 0.06 18.95 19.73 1 0.00 0.00 0 01 0.00 001 Benchmark: MSCI EAFE Index Gross Dividend 158 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 3/14 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 Singapore 1.39 1.39 1.16 0 76 1.01 1.01 6.06 6.49 0.00 0.00 0.07 0.08 South Africa 0.37 0.37 1.52 278 0.00 0.00 0.01 0.00 0.01 South Korea 0.00 0.00 1.53 0.00 11 611 1 1.01 0.00 0 17 0 17 Spain 3.37 3.37 4.73 4.75 2.89 2.89 5 08 7 616 0 02 0.00 0 20 0 22 Sweden 3.20 3.20 3.99 3.01 4.19 2.85 1'i 99 5 35 0.04 0.01 0 75 0 71 Switzerland 8.97 8.97 4.37 5.04 8.15 2.71 2.68 3.18 0 6171 0.01 0 14 0 16 Taiwan 0.00 0.00 2.07 0.00 15.63 15.63 0.00 0.32 0.32 United Kingdom 20.54 20.54 1 551 0 55 18.86 10.90 2 11 1 28 0.02 0.02 0 11 0 616 United States 0.00 0.00 4.05 43.03 4 511 4 511 0.00 0 38 0 15 0 55 100.00 100.00 1 0 07 0.80 100.00 100.00 1.131 1 0 16 0 50 0 55 1 0 55 1 1.56 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 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 16.23 7.27 1.81. 1.77 0,58 0.09 0,49 Materials 12.21 7.62 0.17 1.17 0,1.2 0.02 (').I.I. Industrials 7.44 12.95 5.75 0.65 0,48 0.01 0,47 Consumer Discretionary 7.47 11.95 8,79 1,74 0,53 0.11 0,41 Consumer Staples 4.64 10.95 € ,96 0.79 0,08 0.00 0,08 Health Care 15.52 10.05 2.85 6.19 0,52 0.29 0,22 Financials 22.11 25.48 3.94 0,23 0.92 0.04 0.96 Information Technology 12.97 4.53 0.13 0,37 0.06 (').I.(') 0,04 Telecom. Services 1.41 5.70 7,44 ,0 3 0,06 0.16 0.10 Utilities 0.00 3.51 7.19 0.00 0,22 0,22 100.00 100.00 0.1.3 0.81 1,38 0.40 0,99 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 0.03% [Actual Return-0.15%] - [Buy Hold Return-0.18%] 160 City of Clearwater Employees Pension Fund WHV as of 3/31/14 Portfolio Performance 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 EM WHV MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/08 WHV 2.16 2.16 12.35 3.41 17.44 1.98 MSCI EAFE 0.77 0.77 18.06 7.72 16.56 1.57 Asset Growth(5000) Beginning Market Value 36,136 36,136 32,866 33,403 14,580 29,002 Net Contributions&Withdrawals -1 -1 -7 -19 -22 -22 Gain/Loss+Income 782 782 4,058 31534 22,360 7,938 Ending Market Value 36,918 36,918 36,918 36,918 36,918 36,918 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Canadian Pac Railway Industrials 7.00 Energy 31.14 Agrium Inc Materials 5.08 Materials 26.47 Bhp Billiton Ltd Materials 5.02 Industrials 19.27 Schlumberger Ltd Energy 4.97 Consumer Discretionary 0.00 Rio Tinto Plc Materials 4.65 Consumer Staples 15.22 Tenaris S A Energy 4.44 Health Care 3.16 Canadian Natl Ry Co Industrials 4.44 Financials 4.74 Nestle S A Consumer Staples 4.42 Information Technology 0.00 Core Laboratories N Energy 4.39 Telecom Services 0.00 Eaton Corp Plc Industrials 3.68 Utilities 0.00 161 City of Clearwater Employees Pension Fund WHV as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,718 4.65% Intl Equity $35,200 95.35% Risk/Return Analysis Periods from 4/08 to 3/14 Alpha -0.26 Beta 1.11 R-Squared 0.88 2.2 2.0 1.8 1.6 a 1.4 cC 7� 1.2 N 1.0 0.8 Q 0.6 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 1.98 24.15 0.07 -0.09 1 MSCI EAFE 1.57 21.93 0.06 T" 91-Day Treasury Bill 0.28 0.17 0.00 162 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 3/14 30% 25% 20% ------- 1 15% 1 ------- w 10% ------- 5% w ------ 0% -5% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 4.67 27.73 21.93 14.37 15.67 24.90 1st Qt 2.11 20.39 16.97 10.28 11.56 19.91 Median 0.82 15.46 13.33 7.49 9.14 17.60 3rd Qt -0.40 8.40 9.36 4.21 6.87 15.75 Low -3.05 -4.49 -0.21 -3.67 1.35 12.53 w WHV Net Ret 2.16 12.35 10.92 3.41 7.73 17.44 Rank 24 65 65 77 67 51 1 MSCI EAFE Net Ret 0.77 18.06 14.88 7.72 8.50 16.56 Rank 52 35 35 46 57 61 163 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 90% 80% 70% 60% 50% 30% 1 20% --------- 10 0% - ---- -10% -- ---- -20% ------- -30 3/31/14 YTD 2013 2012 2011 2010 2009 High 4.67 34.21 26.80 0.26 26.86 78.78 1st Qt 2.11 27.08 21.29 -8.92 18.71 45.58 Median 0.82 21.64 18.60 -12.44 13.17 35.69 3rd Qt -0.40 15.88 15.86 -15.60 9.07 27.76 Low -3.05 3.63 6.67 -22.34 3.16 11.82 w WHV Net Ret 2.16 14.10 16.97 -13.64 17.58 55.98 Rank 24 83 66 61 28 15 1 MSCI EAFE Net Ret 0.77 23.29 17.90 -11.73 8.21 32.46 Rank 52 41 56 42 78 60 164 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of international Equity Portfolios 20% 18% 16% 14% 12% 10% 8% 1 6% 1 4% 2% 0% -2 -4% 3114 12113 9/13 6113 3113 High 14.37 15.49 16.40 17.54 14.00 1 st Qt 10.28 10.87 11.23 12.98 9.09 Median 7.49 8.19 8.76 10.56 6.43 3rd Qt 4.21 5.06 6.05 8.27 4.70 Low -3.67 -2.67 -1.11 2.17 0.54 - WHV Net Ret 3.41 4.85 7.45 10.90 6.23 Rank 77 75 63 46 51 1 MSCIEAFE Net Ret 7.72 8.66 8.97 10.55 5.49 Rank 46 44 46 50 61 WHV Value Added Analysis - Net of Fee 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.5 6.0% 4.0% 2.9 2.0% 1. 0.8 0.0% 0 3 -0.1 -0.2 2.0% NIMES -2.0 - -4.0% 3.9 -6.0% 4.8 -6.3 -8.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.MSCI EAFE ® Cumulative Value Added - 2 Yr Rolling Avg(AnnnahZed) 165 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 3/31/14 20.0 ro 17.4 14.8 12.1 • • •s • ' S •• • .. ' ' • Median 6.9 • . • • Return b N 4.3 1.7 ' • Q -0.8 • . ' ' -3.4 -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 3.41 77 19.18 76 1 MSCI EAFE 7.72 46 16.74 34 Median 7.49 17.52 5 Years Ending 3/31/14 28.0 ro 26.0 24.0 � � s 22.0 •' 0 20.0 • • .• 18.0 • • • . Median • . . s 16.0 • • • '�� • . ..1 • Return 14.0 r .. . • .' Q 12.0 • • 10.0 8.0 8.0 10.6 13.2 15.8 18.4 21.0 23.6 26.2 28.8 31.4 34.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 17.44 51 22.80 73 1 MSCI EAFE 16.56 61 20.60 48 Median 17.60 20.86 166 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 3/14 Portfolio MSCI EAFE Total Number Of Securities 37 905 Equity Market Value 35,199,668 Average Capitalization $(000) 60,817,889 61,587,255 Median Capitalization $(000) 30,878,167 8,942,759 Equity Segment Yield 2.27 3.19 Equity Segment P/E -Average 18.47 19.02 Equity Segment P/E - Median 16.70 18.77 Equity Segment Beta 0.00 1.00 Price/Book Ratio 2.07 1.71 Debt/Equity Ratio 55.91 90.84 Five Year Earnings Growth 5.06 6.82 Five Year Dividend Growth 9.09 4.55 Ten Largest Holdings Market Value % of Portfolio Quarterly Ret Canadian Pac Railway 2,452,009 7.00 -0.38 Agrium Inc 1,777,790 5.08 7.43 Bhp Billiton Ltd 1,758,632 5.02 1.11 Schlumberger Ltd 1,740,375 4.97 8.68 Rio Tinto Plc 1,628,840 4.65 0.92 Tenaris S A 1,555,388 4.44 1.28 Canadian Natl Ry Co 1,554,483 4.44 -1.01 Nestle S A 1,549,532 4.42 2.22 Core Laboratories N 1,537,910 4.39 4.20 Eaton Corp Plc 1,288,083 3.68 -0.67 Ten Best Performers Quarterly Ret Ten Worst Performers Quarterly Ret Nabors Industries Lt 45.34 Teck Resources Ltd -16.65 Allegion Pub Ltd Co 18.23 Talisman Energy Inc -13.76 Canadian Nat Res Ltd 14.03 Noble Corp Plc -11.55 Weatherford Internat 12.07 Vale S A -9.31 Potash Corp Sask Inc 11.01 Axa Sa -6.78 Finning Tractor& Eq 10.19 Ingersoll-Rand Plc -6.68 Schlumberger Ltd 8.68 Ensco Plc -6.36 Novartis A G 8.04 Fibria Celulose S A -5.31 Ubs Ag 7.64 Syngenta Ag -5.20 Agrium Inc 7.43 Diageo -4.93 167 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 3/14 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US$ Active Currency Local US$ Market Currency Security Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 7.97 7.97 2.65 6.06 5.13 0.00 1.11 1.11 0 08 0 20 0 08 0 36 Austria 0.27 0.27 1 46 1 6.7 0.00 0.00 0.00 0.00 0.01 Belgium 1.19 1.19 2.38 2.40 0.00 0.00 0.03 0.01 66.02 Bermuda 0.14 0.14 11 20 (r 5''6 5.00 0.00 17.36 17.36 0 54 61.00 1.43 0.88 Brazil 0.00 0.00 2.83 0.00 9 20 11)20 0.00 0 26 0 76 Canada 0.00 0.00 27.41 0.00 2.49 2.49 0.02 0.68 0.70 Cayman Islands 0.20 0.20 6.57 6 61 4.07 0.00 11.55 11.55 0 25 0.00 0 20 0 45 Channel Islands 0.42 0.42 1.25 0 60 0.00 0.00 0.00 0.00 0.01 China 0.06 0.06 5.55 5.67. 0.00 0.00 0.01 0.00 0.01 Denmark 1.18 1.18 16.55 16.48 0.00 0.00 66.20 0.01 018 Finland 0.91 0.91 0.21 0.23 0.00 0.00 0.00 0.01 0.01 France 9.40 9.40 3.17 3.19 0.71 0.00 6 78 6 78 0 28 0.08 0 07 0 27 Germany 9.43 9.43 019 017 2.89 0.00 3.33 3.33 0.01 0.08 0.10 0.19 Hong Kong 2.58 2.58 29-2, 7 °16 0.00 0.00 0.07 0.02 0.10 Ireland 0.29 0.29 14.20 14.22 3.32 0.00 6 68 6 68 0.43 0.00 0 69 0 76 Isle of Man 0.05 0.05 10 716 166.34 0.00 0.00 0.01 0.00 0.01 Israel 0.45 0.45 19.34 18.69 0.00 0.00 0 09 0.01 0 08 Italy 2.08 2.08 15.63 15.65 0.00 0.00 1y.33 0.02 66.31 Japan 20.95 20.95 732 542 0.00 0.00 1.52 0 22 1.30 Luxembourg 0.28 0.28 0.77 2.64 4.45 0.00 1.28 1.28 0.04 61.00 0.02 0.06 Mexico 0.02 0.02 13.15 13.89 0.00 0.00 66.00 0.00 66.00 Netherland Antilles 0.00 0.00 4.66 0.00 8.68 8.68 0.00 0.40 0.41 Netherlands 3.28 3.28 0.53 0.52 6.85 0.00 3.78 3.78 0.02 0.03 0.22 0.27 New Zealand 0.12 0.12 10.97 17.00 0.00 0.00 0 01 0 01 0 02 Norway 0.66 0.66 3.42 4.80 0.11 0.00 3.19 3.19 0 02 61.00 16.00 0 02 Portugal 0.18 0.18 9.70 9.72 0.00 0.00 66.02 0.00 66.02 Scotland 0.06 0.06 18.95 19.73 0.00 0.00 0 01 0.00 0 01 Singapore 1.39 1.39 1.16 0 76 0.00 0.00 0.02 0.01 0.02 South Africa 0.37 0.37 342 278 0.00 0.00 0.01 0.00 0.01 Spain 3.37 3.37 4.73 1 4.75 1 0.00 0.00 016 0.03 013 Benchmark: MSCI EAFE Index Gross Dividend 168 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 3/14 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 Sweden 3.20 3.20 3.99 3.01 0.00 0.00 0 1') 0.06 0 07 Switzerland 8.97 8.97 4.37 5.04 13.81 0.00 5.09 5.09 0.21 0.02 0.10 0.33 United Kingdom 20.54 20.54 1 571 0 8") 14.19 0.00 0 70 0 70 0.09 0.05 0.12 0.26 United States 0.00 0.00 4.57 100.00 2.61 2.61 0.00 0 87 0.12 0 75 100.00 100.00 0 07 0.80 100.00 100.00 2.15 2.15 0.33 0 87 1.90 1.35 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 3/14 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy, 30.25 7.27 4.91 1.77 0.95 0.22 1.17 Materials 26.75 7.62 1.32 1.17 0.04 0.07 0.11 Industrials 19.77 12.95 €�.3 .. 0 0.65 ..0.29 1. 0.30 Consumer Discretionary 0.00 11.95 1..74 0.00 0.30 0.30 Consumer Staples 15.45 10.95 0.97 0.79 0.03 0.00 0.03 Health Care 3.03 10.05 8.04 6.19 0.06 0,38 0,32 Financials 4.75 25.48 1.63 0,23 0.09 0.22 0.30 Information Technology 0.00 4.53 0,37 0.00 0.05 0.05 Telecom. Services 0.00 5.70 3,03 0.00 0.22 0.22 Utilities 0.00 3.51 7.19 0.00 0,22 0,22 100.00 100.00 2.15 0.81 0.87 0.47 1.34 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 0.12% [Actual Return 2.27%] - [Buy Hold Return 2.15%] 170 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 3/31/14 Portfolio Performance 18.0 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 0.89 0.89 2.09 -0.98 16.42 0.69 MSCI Emg Mkts -0.37 -0.37 -1.07 -2.54 14.83 -0.33 Asset Growth(5000) Beginning Market Value 38,359 38,359 37,907 31,184 9,322 8,277 Net Contributions&Withdrawals 0 0 0 7,692 7,536 7,536 Gain/Loss+Income 340 340 793 -177 21,841 22,887 Ending Market Value 38,700 38,700 38,700 38,700 38,700 38,700 171 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 3/31/14 Asset Allocation($000) Cash&Equiv $0 0.00% Intl Equity $38,700 100.00% Risk/Return Analysis Periods from 4/08 to 3/14 Alpha 0.18 Beta 0.98 R-Squared 0.98 0.8 0.7 V 0.6 0.5 0.4 0.3 a 02 N 0.1 0.0 0.1 Q -0.2 -0.3 -0.4 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio v Eaton Vance Mgmt 0.69 25.06 0.02 0.12 1 MSCI Emg Mkts -0.33 26.29 -0.02 T" 91-Day Treasury Bill 0.28 0.17 0.00 172 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 3/14 25% 20% 15% 1 10% Nr ------- ------ 0% ------ --�---- ------- 1 -5 ------- ------- -10%I V Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 4.67 20.70 19.55 13.28 16.18 23.63 I st Qt 1.11 2.76 4.49 2.06 6.68 19.06 Median -0.15 -1.27 1.86 -0.34 4.30 16.34 3rd Qt -1.10 -3.56 0.15 -3.40 1.78 14.22 Low -3.18 -7.13 -3.30 -7.28 -1.28 10.55 v Eaton Vance Mgmt Net Ret 0.89 2.09 2.98 -0.98 3.42 16.42 Rank 30 29 38 55 58 49 1 MSCI Emg Mkts Net Ret -0.37 -1.07 0.60 -2.54 2.40 14.83 Rank 54 46 69 69 71 69 173 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 100% 90% 80% --1---- 70% 60% 50% 40% 30% 20% ------- ------ ------ -- ---- 10% 0% - ---- ------ -10% ------- -20% -30%1 00 3/31/14 YTD 2013 2012 2011 2010 2009 High 4.67 12.47 29.81 3.58 29.17 92.03 1st Qt 1.11 1.94 23.52 -12.46 24.10 81.18 Median -0.15 -1.70 20.02 -17.77 20.28 75.63 3rd Qt -1.10 -4.99 16.67 -21.53 17.49 68.30 Low -3.18 -7.49 8.09 -25.62 8.50 27.05 v Eaton Vance Mgmt Net Ret 0.89 1.22 18.55 -19.27 23.33 67.01 Rank 30 30 63 65 29 76 1 MSCI Emg Mkts Net Ret -0.37 -2.27 18.62 -18.17 19.19 79.02 Rank 54 52 63 54 61 32 174 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios 1 8% 16% 14% 12% 10% 8% 6% 4% 1 1 2% O% v 1 2% 4% -6 -8% 3114 12113 9/13 6113 3/13 High 13.28 16.26 16.96 17.37 15.25 1 st Qt 206 2.68 4.21 8.73 8.23 Median -0.34 0.48 1.72 5.89 5.60 3rd Qt -3.40 -2.32 -0.75 3.20 2.81 Low -7.28 -5.99 -5.02 -1.38 -0.59 v Eaton Vance Mg-t Rot- -0.98 -1.05 0.54 4.54 3.97 Rank 55 62 61 64 65 1 MSCI Eing Mkts Return -2.54 -1.74 -0.00 3.72 3.59 Rank 69 67 66 71 69 Eaton Vance Mgmt Value Added Analysis - Net of Fee 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.6 1.6 1.3 1.3 1.0% mum 0.7 0.4 0.5 0.2 0.0% 0.5 O. 0.0 O. 0.4 -1.4 -1.3 2.0% -3.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.MSCI Emg Mkts ® Cumulative Value Added - 2 Yr Rolling Avg(AIII1nah1 ed) 175 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 3/31/14 14.0 ro 11.0 8.0 3. 5.0 • • • 2.0 ' o . .. ! . • •• ' • . • Median -1.0 • •S • . •'� .'S ' Return -C • . • per. •• • • � N -4.0 . . . . .. ' • Q -10.0 • -13.0 -16.0 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.6 24.4 26.2 28.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 3.41 18 19.18 59 1 MSCI EAFE 7.72 11 16.74 28 Median -0.34 18.85 5 Years Ending 3/31/14 24.0 ro 22.0 . c 20.0 •� •• ' 18.0 • o . . • ' •• Median C j 4 16.0 • •. Return • • .. N 14.0 . ;' •. • ♦. • Q 12.0 10.0 • ' 8.0 • • 10.0 12.8 15.6 18.4 21.2 24.0 26.8 29.6 32.4 35.2 38.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W WHV 17.44 37 22.80 23 1 MSCI EAFE 16.56 49 20.60 16 Median 16.34 24.65 176 City of Clearwater Employees Pension Fund Fixed Income Comp as of 3/31/14 Portfolio Performance 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 ILI il 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 2.21 2.21 1.20 4.31 6.72 5.09 6.66 BC Agg 1.84 1.84 -0.10 3.75 4.80 4.46 6.87 Asset Growth(5000) Beginning Market Value 209,340 209,340 214,097 195,329 174,839 184,438 59,224 Net Contributions&Withdrawals 1,001 1,001 -1,727 -6,048 -5,621 -5,621 -5,621 Gain/Loss+Income 4,661 4,661 2,632 25,721 45,784 36,185 161,399 Ending Market Value 215,002 215,002 215,002 215,002 215,002 215,002 215,002 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 7.44 Finance 15.09 United States Treas Government 5.82 Government 26.93 FNMA Cl 30-Tba May Mortgage 1.88 Industrials 15.84 United States Treas Government 1.77 Mortgage 32.34 United States Treas Government 1.43 Transportation 1.58 United States Treas Government 1.40 Utilities 3.35 United States Treas Government 1.26 Municipals 3.06 FNMA Ci 15-Tba Apr Mortgage 1.24 Foreign 1.56 4283a-Ew Mortgage 1.07 Miscellaneous 0.26 Federal Natl Mtg Ass Government 1.02 Holdings and allocations only include SMA accounts. 177 City of Clearwater Employees Pension Fund Fixed Income Comp as of 3/31/14 Asset Allocation($000) Em Other $23 0.01% Domestic Fixed ® Domestic Equity $220,960 102.77% $4 0.00% Cash&Equiv $-5,985 -2.78% Risk/Return Analysis Periods from 12/87 to 3/14 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 jj 11 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 6.66 3.13 0.94 -0.11 1 BC Agg 6.87 4.07 0.77 T" 91-Day Treasury Bill 3.72 1.27 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 3/14 18% 16% 14% 12% 10% 8% --- 6% --- --- --- --- --- Liz-, 4% --- - �-- 1-- --- --- - - 2% -- --- 0% --- -2% -4% -6% 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 6.02 8.33 10.66 9.72 10.55 16.52 10.32 8.92 9.03 8.78 8.39 1st Qt 2.49 1.89 4.99 6.14 6.48 8.78 6.55 6.60 6.68 6.25 5.82 Median 1.81 0.46 2.80 4.22 4.74 6.19 5.29 5.42 5.58 5.26 4.89 3rd Qt 1.03 -0.25 1.70 3.40 3.78 4.48 3.88 4.52 4.73 4.53 4.16 Low 0.11 -5.16 -0.45 0.84 0.89 1.02 1.07 1.27 2.29 2.43 2.45 F Fixed Income Comp Net Ret 2.21 1.20 3.06 4.31 4.73 6.72 5.70 5.74 5.89 5.53 5.09 Rank 31 32 45 48 50 43 41 41 43 43 45 1 BC Agg Net Ret 1.84 -0.10 1.82 3.75 4.09 4.80 4.52 4.96 5.17 4.84 4.46 Rank 48 69 70 64 68 68 63 65 64 66 67 179 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% -- -5% --- -10% --- -15% -20% -25% -30% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 High 6.02 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 10.86 1st Qt 2.49 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 5.59 Median 1.81 -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 4.51 3rd Qt 1.03 -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 3.35 Low 0.11 -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 2.21 -0.75 6.53 5.94 7.37 12.37 2.54 5.94 5.05 2.59 3.93 Rank 31 51 52 53 48 35 46 61 31 52 67 1 BC Agg Net Ret 1.84 -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 4.34 Rank 48 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 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 2 1 3 2 4 17 22 Positive Periods 3 2 11 9 18 16 88 83 Up Market Capture 1.18 1.03 1.27 0.90 Down Market Capture 0.66 0.53 0.46 0.33 Batting Average 1.00 0.75 0.80 0.50 Worst Quarter 2.1 2,32 2.1 7.32 2,13 7.32 7.54 2,87 Best Quarter 2.21 1.84 2.32 3.82 5.72 3.82 5.72 7.96 Worst 4 Quarters 1.20 0,10 0,77 2,02 0,77 2,02 0,77 7,27 Best 4 Quarters 1.20 0,10 7.10 7.72 15.09 9.50 15.87 18.48 Standard Deviation 3.60 3.49 2.46 3.11 3.52 3.22 3.13 4.07 Beta 1.02 0.68 0.86 0.60 Alpha 0.32 0.43 0.63 0.25 R-Squared 0.97 0.72 0.61 0.58 Sharpe Ratio 0.31 0,05 1.72 1.18 1.88 1.45 0.94 0.77 Treynor Ratio 1.11 6.22 7.68 4.92 Tracking Error 0.51 1.69 2.27 2.56 Information Ratio 2.52 0.31 0.81 0,1.1. 181 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 3/31/14 12.0 ro 10.0 c 8.0 • • w 6.0 • Y• • 4.0 • • : • • • Median • •••••� • . • • • Return 2.0 Q 0.0 -2.0 -4.0 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 4.31 48 2.46 27 1 BC Agg 3.75 64 3.11 47 Median 4.22 3.20 5 Years Ending 3/31/14 16.0 ro 14.0 •. 12.0 • 10.0 • w 8.0 . • J.•• �•. Median 6.0 f f • Return °7�� 4.0 • • w • • . • 1 t 2.0 • Q 0.0 • -2.0 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 6.72 43 3.52 43 1 BC Agg 4.80 68 3.22 33 Median 6.19 3.85 182 City of Clearwater Employees Pension Fund Dodge & Cox as of 3/31/14 Portfolio Performance 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 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 2.31 2.31 2.32 4.87 7.62 5.40 5.42 BC Agg 1.84 1.84 -0.10 3.75 4.80 4.46 4.50 Asset Growth(5000) Beginning Market Value 115,334 115,334 115,327 106,949 87,767 76,077 75,656 Net Contributions&Withdrawals -1 -1 -4 -5,013 -7,428 -7,428 -7,428 Gain/Loss+Income 2,662 2,662 2,674 16,059 37,657 49,347 49,768 Ending Market Value 117,996 117,996 117,996 117,996 117,996 117,996 117,996 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 3.22 Finance 20.06 United States Treas Government 2.61 Government 11.22 United States Treas Government 2.54 Industrials 19.07 4283a-Ew Mortgage 1.94 Mortgage 35.33 FNMA Pool All 849 Mortgage 1.50 Transportation 2.65 Aol Time Warner Inc Industrials 1.45 Utilities 4.65 4136k Df Mortgage 1.41 Municipals 5.89 Fnr2002-W7- Mortgage 1.40 Foreign 1.14 Fhlm Pool G07491 Mortgage 1.37 Miscellaneous 0.00 Fhlm Pool G07504 Mortgage 1.33 183 City of Clearwater Employees Pension Fund Dodge & Cox as of 3/31/14 Asset Allocation($000) Domestic Fixed $114,916 97.39% 49 ❑ Cash&Equiv $3,080 2.61% Risk/Return Analysis Periods from 2/04 to 3/14 Alpha 0.35 Beta 0.83 R-Squared 0.57 6.0 5.5 5.0 4.5 4.0 b N 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 5.42 3.44 1.10 0.33 1 BC Agg 4.50 3.37 0.85 T" 91-Day Treasury Bill 1.64 0.57 0.00 184 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 3/14 18% 16% 14% 12% 10% 8% --- 6% --- --- --- --- --- --- 4% D:[:I- 0% 2% --- -2% -4% -6% 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 6.02 8.33 10.66 9.72 10.55 16.52 10.32 8.92 9.03 8.78 8.39 1st Qt 2.49 1.89 4.99 6.14 6.48 8.78 6.55 6.60 6.68 6.25 5.82 Median 1.81 0.46 2.80 4.22 4.74 6.19 5.29 5.42 5.58 5.26 4.89 3rd Qt 1.03 -0.25 1.70 3.40 3.78 4.48 3.88 4.52 4.73 4.53 4.16 Low 0.11 -5.16 -0.45 0.84 0.89 1.02 1.07 1.27 2.29 2.43 2.45 d Dodge & Cox Net Ret 2.31 2.32 4.02 4.87 5.22 7.62 6.26 6.09 6.24 5.84 5.40 Rank 28 23 30 36 37 30 28 33 34 34 35 1 BC Agg Net Ret 1.84 -0.10 1.82 3.75 4.09 4.80 4.52 4.96 5.17 4.84 4.46 Rank 48 69 70 64 68 68 63 65 64 66 67 185 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% d -1---- -- �__ ---- -5% ---- -10% ---- -15% -20% -25% -30% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 High 6.02 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 1st Qt 2.49 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 Median 1.81 -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 3rd Qt 1.03 -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 Low 0.11 -8.48 0.99 0.01 0.69 -1.54 -25.82 2.34 2.13 1.36 d Dodge & Cox Net Ret 2.31 0.65 7.85 5.10 7.53 14.53 1.37 5.47 5.62 2.40 Rank 28 31 41 61 46 24 52 67 21 63 1 BC Agg Net Ret 1.84 -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 48 76 74 25 63 71 24 40 65 62 186 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of Fixed income Portfolios 13% 12% 11% 10% 9% 8% 7% 6% 5% 1 4% 1 a d 3% __________ ___1______ ___1______ 21 O% 3114 12113 9/13 6113 3113 High 9.72 9.48 9.36 10.94 12.65 1 st Qt 6.14 5.60 5.1 1 6.50 8.50 Median 4.22 4.00 3.73 4.55 6.50 3rd Qt 3.40 3.18 2.77 3.37 5.01 Low 0.84 0.81 0.76 0.79 1.12 a Dodge Br,Cox Rot- 4.87 4.49 4.15 4.71 6.20 Rank 36 38 36 42 55 1 BC Agg Return 3.75 3.26 2.86 3.51 5.52 Rank 64 71 71 70 67 Dodge & Cox Value Added Analysis - Net of Fee 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 5. 4.0% 2.3 2.0% 5 1.4 1.2 0.6 0.8 1.1 0.7 0.8 4 0.3 0.5 ().()% O.O O.O 0.4 O.E> 2.0% -1.1 ?.9 -4.0% 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.BC Agg ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAah] ed) 187 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 2 1 3 1 4 8 12 Positive Periods 3 2 11 9 19 16 32 28 Up Market Capture 1.30 1.06 1.36 1.08 Down Market Capture 0.33 0.07 0.01 0.56 Batting Average 1.00 0.67 0.70 0.60 Worst Quarter 1,89 2,32 1,89 2,32 1,89 2,32 2,88 2.44 Best Quarter 2.31 1.84 2.67 3.82 6.98 3.82 6.98 4.57 Worst 4 Quarters 2.32 0,10 0.47 2,02 0.47 2,02 0,26 2,02 Best 4 Quarters 2.32 0,10 8.00 7.72 17.78 9.50 17.78 10.56 Standard Deviation 3.55 3.49 2.43 3.11 3.76 3.22 3.69 3.48 Beta 0.98 0.49 0.72 0.83 Alpha 0.60 0.74 1.01 0.35 R-Squared 0.90 0.37 0.37 0.57 Sharpe Ratio 0.63 0,05 1.97 1.18 2.00 1.45 1.02 0.81 Treynor Ratio 2.29 9.85 10.46 4.52 Tracking Error 0.88 2.58 3.16 2.64 Information Ratio 2.74 0.40 0.85 0.33 188 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 3/31/14 12.0 ro 10.0 c 8.0 • • 6.0 • Y• • o • 4.0 • • : • • • Median b • •••••J, • . • • ' Return C • N 2.0 Q 0.0 -2.0 -4.0 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 4.87 36 2.43 26 1 BC Agg 3.75 64 3.11 47 Median 4.22 3.20 5 Years Ending 3/31/14 16.0 ro 14.0 •. 12.0 • 10.0 • 0 8.0 • • 1.•• • t �•. Median 7 4 6.0 f f • Return °�� 4.0 • • w • • . • 1 t 2.0 • Q 0.0 • -2.0 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge&Cox 7.62 30 3.76 49 1 BC Agg 4.80 68 3.22 33 Median 6.19 3.85 189 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 3/14 Portfolio BC Agg Total Number Of Securities 209 8,441 Total Market Value 114,915,521 Yield to Maturity 2.57 2.39 Time to Maturity 13.42 7.70 Current Coupon 5.05 3.31 Duration 5.45 5.63 Effective Convexity 0.31 0.09 Effective Duration 4.84 5.65 Effective Maturity 7.29 7.70 Yield to Maturity Time to Maturity Coupon 0- 1 15.1% 0- 1 9.3% 0- 3 14.9% 1 - 2 8.9% 1 - 3 7.9% 3 - 5 24.4% 2 - 3 29.4% 3 - 5 9.9% 5 - 7 46.3% 3 - 4 24.8% 5 - 7 10.7% 7 - 9 13.5% 4- 5 12.8% 7 - 10 11.50% 9 - 11 1.0% 5+ 9.0% 10+ 50.8% 11+ 0.0% Quality Duration Effective Duration GOVT 12.6% 0- 1 9.4% 0- 1 11.40/o AAA 33.3% AA 2.4% 1 - 3 14.2% 1 - 3 27.90/o A 12.1%--- 3 -4 18.9% 3 - 4 17.6% BAA 33.6%,\,,' 4- 6 23.1% 4- 6 14.4% BA 3.1% 6- 8 15.8% 6- 8 11.0% B 0.5% NR 2.4% 8+ 18.6% 8+ 17.600 190 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 3/31/14 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 11.22 --- --- --- --- --- --- --- 11.22 Treasury 9.36 --- --- --- --- --- --- --- 9.36 Agency 1.86 --- --- --- --- --- --- --- 1.86 Corporate 0.78 1.58 5.20 32.77 3.09 0.48 --- 1.02 44.92 Industrial --- --- 3.61 14.50 0.95 --- --- --- 19.06 Utility --- --- --- 2.97 1.19 0.48 --- --- 4.64 Finance 0.78 0.97 1.60 14.76 0.95 --- --- 1.02 20.08 Yankee --- 0.61 --- 0.53 --- --- --- --- 1.14 Transportation --- 0.34 1.48 0.83 --- --- --- --- 2.65 Mortgage 33.90 --- --- --- --- --- --- 1.42 35.32 GNMA --- --- --- --- --- --- --- 0.12 0.12 FHLMC 15.70 --- --- --- --- --- --- 0.73 16.43 FNMA 17.45 --- --- --- --- --- --- 0.57 18.02 Other Mortgage 0.76 --- --- --- --- --- --- --- 0.76 Municipals --- 0.52 5.38 --- --- --- --- --- 5.90 Cash --- --- --- --- --- Other --- --- --- --- --- Total 45.90 2.43 12.06 33.59 3.09 0.48 --- 2.44 100.00 191 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 3/14 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 20.10 12.39 2.29 1.66 0.13 1. 0.11 Government 10.85 40.15 0.13 1.38 0,14 0.13 0.00 Industrials 20.34 11.78 4.20 3.38 0.17 0.13 0.30 Mortgage 35.14 30.45 1.42 1.76 0,1.2 0.00 0,1. . Transportation 2.10 0.38 1.66 4.15 0,05 0.04 1 Utilities 4.36 2.37 4.67 3.70 0.04 0.04 0.08 Municipals 5.98 0.02 6.13 2.16 0.24 0.02 0.26 Foreign 1.14 2.45 3.19 1.59 0.02 0.00 0.02 Miscellaneous 0.00 0.02 0.00 0.00 0.00 0.00 100.00 100.00 2.47 1.83 0.29 0.35 0.64 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 -0.13% [Actual Return 2.34%] - [Buy Hold Return 2.47%] 192 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 3/31/14 Portfolio Performance 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Lit 0.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co. BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/04 Western Asset Management Co. 2.23 2.23 -0.05 3.78 5.62 4.94 BC Agg 1.84 1.84 -0.10 3.75 4.80 4.63 Asset Growth(5000) Beginning Market Value 89,472 89,472 91,526 81,903 84,590 74,568 Net Contributions&Withdrawals 0 0 -11 -65 -65 -65 Gain/Loss+Income 1,995 1,995 -48 9,629 6,942 16,964 Ending Market Value 91,467 91,467 91,467 91,467 91,467 91,467 Top Fixed Income Holdings Sector Allocation Sector %Port %Port United States Treas Government 17.48 Finance 9.72 United States Treas Government 13.68 Government 43.88 FNMA Cl 30-Tba May Mortgage 4.42 Industrials 12.36 United States Treas Government 2.95 Mortgage 29.12 FNMA Ci 15-Tba Apr Mortgage 2.92 Transportation 0.43 Federal Natl Mtg Ass Government 2.40 Utilities 1.94 United States Treas Government 2.39 Municipals 0.00 GNMA Ii Sf 30-Tba Mortgage 2.34 Foreign 2.01 United States Treas Government 2.17 Miscellaneous 0.54 United States Treas Government 1.97 193 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 3/31/14 Asset Allocation($000) Domestic Fixed ® Other $106,044 115.94% $23 0.02% Cash&Equiv $-14,600 -15.96% Risk/Return Analysis Periods from 9/04 to 3/14 Alpha 0.02 Beta 1.07 R-Squared 0.92 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 w Western Asset Management 4.94 3.68 0.89 0.28 1 BC Agg 4.63 3.31 0.89 T" 91-Day Treasury Bill 1.67 0.99 0.00 194 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 3/14 18% 16% 14% 12% 10% 8% ---- 6% ---- ---- ---- ---- -- 1 ---- 2% --- 0% ---- -2% -4% -6% 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 6.02 8.33 10.66 9.72 10.55 16.52 10.32 8.92 9.03 8.78 1st Qt 2.49 1.89 4.99 6.14 6.48 8.78 6.55 6.60 6.68 6.25 Median 1.81 0.46 2.80 4.22 4.74 6.19 5.29 5.42 5.58 5.26 3rd Qt 1.03 -0.25 1.70 3.40 3.78 4.48 3.88 4.52 4.73 4.53 Low 0.11 -5.16 -0.45 0.84 0.89 1.02 1.07 1.27 2.29 2.43 w Western Asset Management Co. Net Ret 2.23 -0.05 2.02 3.78 4.23 5.62 4.99 5.26 5.47 5.14 Rank 30 68 64 62 63 55 53 57 54 55 1 BC Agg Net Ret 1.84 -0.10 1.82 3.75 4.09 4.80 4.52 4.96 5.17 4.84 Rank 48 69 70 64 68 68 63 65 64 66 195 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 35% 30% 25% 20% 15% 10% ____ --_ 5% -- -- -1---- ---- --- 0% -- ---- -== -5% --- -10% ---- -15% -20% -25% -30% 3/31/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 High 6.02 9.60 16.80 15.81 16.19 32.31 9.81 10.51 11.68 6.77 1st Qt 2.49 1.86 10.36 7.86 10.13 14.33 5.22 7.53 5.36 3.19 Median 1.81 -0.66 6.77 6.19 7.27 9.20 1.81 6.54 4.57 2.62 3rd Qt 1.03 -2.00 4.20 3.73 5.76 5.54 -6.38 5.04 4.13 2.11 Low 0.11 -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 2.23 -2.46 5.07 7.23 7.09 9.24 3.92 6.51 4.66 2.77 Rank 30 84 64 37 52 49 38 50 45 42 1 BC Agg Net Ret 1.84 -2.02 4.22 7.84 6.54 5.93 5.24 6.96 4.33 2.43 Rank 48 76 74 25 63 71 24 40 65 62 196 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of Fixed income Portfolios 13% 12% 11% 10% 9% 8% 7% 6% w 1 5 4% w 1 3% __________ W 1______ 2% I% O% 3114 12113 9/13 6113 3/13 High 9.72 9.48 9.36 10.94 12.65 1 st Qt 6.14 5.60 5.1 1 6.50 8.50 Median 4.22 4.00 3.73 4.55 6.50 3rd Qt 3.40 3.18 2.77 3.37 5.01 Low 0.84 0.81 0.76 0.79 1.12 w Western Asset Management Co. Return 3.78 3.19 2.88 3.68 5.69 Rank 62 74 70 65 64 1 BC Agg Return 3.75 3.26 2.86 3.51 5.52 Rank 64 71 71 70 67 Western Asset Management Co. Value Added Analysis - Net of Fee 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.3 0.3 0.2 0.2 0.2 O.1 O.1 1 ().()% O.O O.O -0.1 -0.1 -O.1 -0.5% 0 -0.2 Im -1.0% -0.8 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.BC Agg ® Cumulative Value Added - 2 Yr Rolling Avg(AIllllAah] ed) 197 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 3 3 4 4 12 11 Positive Periods 2 2 9 9 16 16 26 27 Up Market Capture 1.09 1.03 1.15 1.09 Down Market Capture 1.07 1.11 1.02 1.19 Batting Average 0.25 0.42 0.60 0.58 Worst Quarter 2.45 2,32 2.45 2,32 2.45 2,32 2.45 2,32 Best Quarter 2.23 1.84 2.94 3.82 4.64 3.82 5.22 4.57 Worst 4 Quarters 0,05 1 2,46 2,02 2,46 2,02 2,46 2,02 Best 4 Quarters 0,05 1 7.37 7.72 11.40 9.50 14.60 10.56 Standard Deviation 3.86 3.49 3.00 3.11 3.53 3.22 3.68 3.31 Beta 1.10 0.94 1.03 1.07 Alpha 0.02 0.06 0.16 0.02 R-Squared 0.99 0.95 0.89 0.92 Sharpe Ratio 0,03 0,05 1.23 1.18 1.56 1.45 0.89 0.89 Treynor Ratio (').1.1. 3.92 5.34 3.04 Tracking Error 0.51 0.69 1.21 1.11 Information Ratio 0.11 0.03 0.66 0.28 198 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 3/31/14 12.0 ro 10.0 c 8.0 • • w 6.0 • Y• • 4.0 • • : • • • Median • •••••� • . • • • • Return 2.0 Q 0.0 -2.0 -4.0 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. 3.78 62 3.00 40 1 BC Agg 3.75 64 3.11 47 Median 4.22 3.20 5 Years Ending 3/31/14 16.0 ro 14.0 •. 12.0 • 10.0 • w 8.0 . • J.•• • t �•. Median cC 6.0 f f • Return °7�� 4.0 • • w • • . • 1 t 2.0 • Q 0.0 • -2.0 -4.0 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank W Western Asset Management Co. 5.62 55 3.53 43 1 BC Agg 4.80 68 3.22 33 Median 6.19 3.85 199 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 3/14 Portfolio BC Agg Total Number Of Securities 375 8,441 Total Market Value 106,044,239 Yield to Maturity 2.18 2.39 Time to Maturity 13.41 7.70 Current Coupon 2.94 3.31 Duration 5.55 5.63 Effective Convexity 0.29 0.09 Effective Duration 4.81 5.65 Effective Maturity 7.27 7.70 Yield to Maturity Time to Maturity Coupon 0- 1 34.6%- 0- 1 13.3%- 0- 3 46.5%-- I - 2 7.2%--- 1 - 3 20.9%- 3 - 5 28.9%\ 2 - 3 21.4%�- 3 - 5 5.8% 5 - 7 21.9%\ 3 - 4 26.8%-�,, 5 - 7 7.1% 7 - 9 2.2%\ 4- 5 5.4% 7 - 10 9.10%, 9 - 11 0.4%\ 5+ 4.6% 10+ 43.8% ll+ 0.1 Quality Duration Effective Duration AMIIIIIIIIIIIIIIIIIIIillillillillillillilliillillillillilliillillillillillilliillillillillillillilliillillillillillillilliillillilI GOVT 41.3%--- 0- 1 13.20/o- 0- 1 14.2%- AAA 29.7%\ I - 3 22.70/o-- I - 3 27.1 0/o- AA 2.80/(\ 3 -4 12.40 3 - 4 14.9%-- A 8.2 O/o\ 4- 6 21.00 - 4- 6 21.5%--- BAA 16.3%\ BA 0.2 O/o\ 6- 8 11.6% 6- 8 6.7%--- NR 1.5%�-- 8+ 19.0% 8+ 15.5% 200 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 3/31/14 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 42.20 1.30 --- 0.37 --- --- --- --- 43.87 Treasury 39.21 --- --- --- --- --- --- --- 39.21 Agency 2.99 1.30 --- 0.37 --- --- --- --- 4.66 Corporate 0.26 1.06 8.24 15.54 0.24 --- --- 0.68 26.02 Industrial --- 0.39 4.64 7.33 --- --- --- --- 12.36 Utility --- --- 0.45 1.49 --- --- --- --- 1.94 Finance --- 0.53 2.67 6.01 0.24 --- --- 0.28 9.73 Yankee 0.26 0.14 0.49 0.71 --- --- --- 0.41 2.01 Transportation --- 0.04 --- 0.39 --- --- --- --- 0.43 Mortgage 28.53 0.36 --- --- --- --- --- 0.23 29.12 GNMA 6.56 --- --- --- --- --- --- 0.23 6.79 FHLMC 3.21 --- --- --- --- --- --- --- 3.21 FNMA 15.69 --- --- --- --- --- --- --- 15.69 Other Mortgage 3.08 0.36 --- --- --- --- --- --- 3.44 Municipals --- --- --- --- --- --- --- --- --- Cash --- --- --- --- --- Other --- --- --- --- --- --- --- 0.54 0.54 Total 70.99 2.77 8.24 16.30 0.24 --- --- 1.46 100.00 201 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 3/14 Weight Return Selection Portfolio Index Portfolio Index Security Sector Total Finance 10.23 12.39 1.76 1.66 0.01 0.00 0.01 Government 40.11 40.15 1.51 1.38 0.05 0.00 0.05 Industrials 12.62 11.78 3.14 3.38 0,03 0.01 0,02 Mortgage 32.08 30.45 1.79 1.76 0.01 0.00 0.01 Transportation 0.46 0.38 2.94 4.15 �'�.�'�1. 0.00 0.00 Utilities 1.89 2.37 3.09 3.70 �'�.�'�1 1. 0,02 Municipals 0.00 0.02 0.00 2.16 0.00 0.00 0.00 Foreign 2.04 2.45 2.42 1.59 0.02 0.00 0.02 Miscellaneous 0.57 0.02 0.00 0.00 �'�.�'�1. �'�.�'��. 100.00 100.00 1.88 1.83 0.04 0.00 0.04 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 0.13% [Actual Return 2.00%] - [Buy Hold Return 1.88%] 202 City of Clearwater Employees Pension Fund Real Estate Comp as of 3/31/14 Portfolio Performance 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 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 6.49 6.49 8.58 9.29 28.73 4.07 Policy Index 7.52 7.52 7.70 11.56 29.09 4.82 Asset Growth(5000) Beginning Market Value 81,344 81,344 80,269 66,221 21,289 19,347 Net Contributions&Withdrawals 0 0 -508 61 -1,939 -1,939 Gain/Loss+Income 5,281 5,281 6,864 20,343 67,274 69,217 Ending Market Value 86,624 86,624 86,624 86,624 86,624 86,624 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 9.85 Energy 0.00 Prologis Inc Financials 6.06 Materials 0.00 Avalonbay Cmntys Inc Financials 5.74 Industrials 0.00 Public Storage Inc Financials 5.28 Consumer Discretionary 0.00 Hcp Inc Financials 4.58 Consumer Staples 0.00 Vornado Rhy Tr Financials 4.29 Health Care 0.00 Health Care Reit Inc Financials 4.20 Financials 100.00 Equity Residential P Financials 3.98 Information Technology 0.00 Host Hotels&Resort Financials 3.87 Telecom Services 0.00 Macerich Co Financials 3.82 Utilities 0.00 203 City of Clearwater Employees Pension Fund Real Estate Comp as of 3/31/14 Asset Allocation($000) Domestic Equity EM $45,758 52.82% Ob ❑ Cash&Equiv $1,018 1.18% ® Real Estate $39,849 46.00% Risk/Return Analysis Periods from 4/08 to 3/14 Alpha -0.14 Beta 0.99 R-Squared 0.99 5.0 4.5 4.0 R 3.5 a 3.0 cC 7� 2.5 N 2.0 1.5 Q 1.0 0.5 0.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio R Real Estate Comp 4.07 29.83 0.13 -0.23 1 Policy Index 4.82 30.16 0.15 T" 91-Day Treasury Bill 0.28 0.17 0.00 204 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/14 35% 30% 25% 20% 15% ------- ------- 10% ------- 1 ------- 0 ------- ------- -5% -10% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 10.79 18.77 16.90 17.77 19.64 28.72 1st Qt 6.04 13.54 12.17 12.84 14.68 13.18 Median 3.09 9.49 10.03 10.44 12.24 6.24 3rd Qt 1.88 3.64 7.53 6.90 6.64 1.67 Low -3.93 -7.56 -2.29 -3.76 -3.87 -8.54 R Real Estate Comp Net Ret 6.49 8.58 8.60 9.29 12.84 28.73 Rank 24 53 70 59 42 4 1 Policy Index Net Ret 7.52 7.70 10.24 11.56 13.58 29.09 Rank 20 54 47 34 36 2 205 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% ol 1 20% ------- --I---- ------- ------- -10% -20% -30% -40% -50% 3/31/14 YTD 2013 2012 2011 2010 2009 High 10.79 17.59 29.13 24.92 29.86 32.50 1st Qt 6.04 13.23 16.89 15.96 18.42 -2.40 Median 3.09 8.76 11.24 10.85 13.55 -26.83 3rd Qt 1.88 2.71 4.94 2.35 1.40 -31.92 Low -3.93 -8.19 -6.83 -15.56 -23.74 -47.55 R Real Estate Comp Net Ret 6.49 6.29 11.69 8.85 30.51 24.68 Rank 24 58 45 57 4 12 1 Policy Index Net Ret 7.52 6.02 15.41 11.62 24.96 29.20 Rank 20 60 28 48 11 9 206 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 2 2 3 3 5 5 Positive Periods 3 3 10 10 17 17 18 18 Up Market Capture 1.07 0.84 0.97 0.96 Down Market Capture 0.59 0.97 0.86 0.99 Batting Average 0.75 0.33 0.45 0.43 Worst Quarter 0,42 0,70 8,90 8,94 °,90 8,94 37,93 40,4 0 Best Quarter 6.49 7.52 9.65 11.30 33.98 35.93 33.98 35.93 Worst 4 Quarters 8.60 7.70 6.32 6.02 6.21 6.02 45,35 45,6 Best 4 Quarters 8.60 7.70 20.74 25.41 118.01 115.40 118.01 115.40 Standard Deviation 6.03 7.54 9.35 10.46 20.97 21.12 32.05 32.17 Beta 0.82 0.89 0.99 0.99 Alpha 0.54 0,22 0.02 0,1.4 R-Squared 0.98 0.98 0.99 0.99 Sharpe Ratio 1.41 1.01 0.99 1.10 1.37 1.37 0.19 0.21 Treynor Ratio 10.42 10.41 29.05 6.20 Tracking Error 1.69 1.66 2.58 2.95 Information Ratio 0.45 1,32 0,1.4 0,23 207 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 3/31/14 30.0 ro 25.0 c 20.0 15.0 • • 1 Median 10.0 28 Return N � 5.0 + • Q • • 0.0 � • -5.0 • 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 9.29 59 9.35 56 1 Policy Index 11.56 34 10.46 59 Median 10.44 7.71 5 Years Ending 3/31/14 40.0 ro 33.5 27.0 • t 20.5 • •�.'� . 3•• . • • 0 14.0 • 7.5 . • • Median a • • 1.0 • • • J . Return -5.5 • Q -12.0 • -18.5 -25.0 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 28.73 4 20.97 70 1 Policy Index 29.09 2 21.12 70 Median 6.24 14.63 208 City of Clearwater Employees Pension Fund Security Capital as of 3/31/14 Portfolio Performance 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 10.60 10.60 5.34 9.42 29.30 4.46 Wilshire RESI 9.99 9.99 4.61 10.38 29.31 4.91 Asset Growth(5000) Beginning Market Value 42,289 42,289 45,395 44,611 21,289 19,347 Net Contributions&Withdrawals 0 0 -945 -9,756 -31,756 -31,756 Gain/Loss+Income 4,485 4,485 2,323 11,918 57,240 59,183 Ending Market Value 46,774 46,774 46,774 46,774 46,774 46,774 Top Equity Holdings GICS Sector Allocation GICS Sector %Port %Port Simon Ppty Group Inc Financials 9.85 Energy 0.00 Prologis Inc Financials 6.06 Materials 0.00 Avalonbay Cmntys Inc Financials 5.74 Industrials 0.00 Public Storage Inc Financials 5.28 Consumer Discretionary 0.00 Hcp Inc Financials 4.58 Consumer Staples 0.00 Vornado Rhy Tr Financials 4.29 Health Care 0.00 Health Care Reit Inc Financials 4.20 Financials 100.00 Equity Residential P Financials 3.98 Information Technology 0.00 Host Hotels&Resort Financials 3.87 Telecom Services 0.00 Macerich Co Financials 3.82 Utilities 0.00 209 City of Clearwater Employees Pension Fund Security Capital as of 3/31/14 Asset Allocation($000) Cash&Equiv $1,016 2.17% Domestic Equity EM $45,758 97.83% Risk/Return Analysis Periods from 4/08 to 3/14 Alpha -0.08 Beta 1.00 R-Squared 0.99 5.5 5.0 4.5 4.0 2 3.5 3.0 N 2.5 2.0 1.5 Q 1.0 0.5 0.0 j j 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 4.46 31.39 0.13 -0.16 1 Wilshire RESI 4.91 31.66 0.15 T" 91-Day Treasury Bill 0.28 0.17 0.00 210 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/14 35% 30% 25% 20% 15% ------- - ------- ------- 0 ------- ------- -5% -10% Last Last Last 2 Last 3 Last 4 Last 5 Qtr Year Years Years Years Years High 10.79 18.77 16.90 17.77 19.64 28.72 1st Qt 6.04 13.54 12.17 12.84 14.68 13.18 Median 3.09 9.49 10.03 10.44 12.24 6.24 3rd Qt 1.88 3.64 7.53 6.90 6.64 1.67 Low -3.93 -7.56 -2.29 -3.76 -3.87 -8.54 s Security Capital Net Ret 10.60 5.34 8.54 9.42 13.47 29.30 Rank 5 63 71 59 39 1 1 Wilshire RESI Net Ret 9.99 4.61 9.12 10.38 13.83 29.31 Rank 10 67 64 51 34 1 211 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% ol 1 20% ol --------- 10% ------- 1 0% ------- -1---- ------- -10 -20% -30% -40% -50% 3/31/14 YTD 2013 2012 2011 2010 2009 High 10.79 17.59 29.13 24.92 29.86 32.50 1st Qt 6.04 13.23 16.89 15.96 18.42 -2.40 Median 3.09 8.76 11.24 10.85 13.55 -26.83 3rd Qt 1.88 2.71 4.94 2.35 1.40 -31.92 Low -3.93 -8.19 -6.83 -15.56 -23.74 -47.55 s Security Capital Net Ret 10.60 1.60 16.22 6.86 31.62 24.68 Rank 5 83 26 64 2 12 1 Wilshire RESI Net Ret 9.99 2.15 17.55 8.56 29.12 29.20 Rank 10 80 22 59 6 9 212 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 5 Years Ending 3/31/14 40.0 ro 33.5 27.0 • t 20.5 . •'.'a t� • • 0 14.0 7.5 • . • . Median 7a • • 1.0 . • • •♦ . Return -5.5 • • Q -12.0 • -18.5 -25.0 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 29.30 1 23.01 80 1 Wilshire RESI 29.31 1 23.14 81 Median 6.24 14.63 5 Years Ending 3/31/14 40.0 ro 33.5 27.0 • t 20.5 • •'.•� . 1•• . • • 0 14.0 7.5 • . • . Median a • • 1.0 . • • •J . Return -5.5 • • Q -12.0 • -18.5 -25.0 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 29.30 1 23.01 80 1 Wilshire RESI 29.31 1 23.14 81 Median 6.24 14.63 213 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of Real Estate Portfolios 30% 25% 20% 1 15% 1 10% 1 5% 0% -5% -10% 3114 12113 9/13 6113 3/13 High 17.77 25.71 24.51 26.90 26.57 1 st Qt 12.84 14.52 15.27 17.03 16.61 Median 10.44 10.56 11.72 13.33 12.98 3rd Qt 6.90 6.56 6.93 6.08 5.35 Low -3.76 -6.11 -4.75 -6.99 -8.63 s Security Capital Net Ret 9.42 8.06 1 1.21 17.13 16.32 Rank 59 66 55 24 26 1 Wilshire REST Net Ret 10.38 9.24 12.43 18.30 17.08 Rank 51 59 42 17 19 Security Capital Value Added Analysis - Net of Fee 3.5% 3.0% 2.5% 2.0% 1.6 I.5% 1.0% 1.0 0.8 0.6 0.5% 0.5 0.0% -O. -0.5% 1 -0.3 -0. -0.5 -0.5 - - - 0.7 -L5% 2.0% -1.8 6/09 9/09 12/09 3/10 6110 9/10 12/10 3/11 6111 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.Wilshire RESI ® Cumulative Value Added - 2 Yr Rolling Avg(AnnnaliZed) 214 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 3 3 5 5 6 6 8 8 Positive Periods 1 1 7 7 14 14 15 15 Up Market Capture 1.06 0.96 0.99 0.98 Down Market Capture 0.97 1.03 0.96 0.99 Batting Average 0.50 0.17 0.30 0.30 Worst Quarter 3,22 2,80 15,51 15,08 15,51 15,08 37,93 40,4 0 Best Quarter 10.60 9.99 14.90 15.40 33.98 35.93 33.98 35.93 Worst 4 Quarters 5.34 4.61 1.60 2.15 0.35 1.76 45,35 45,6 Best 4 Quarters 5.34 4.61 30.83 32.40 118.01 115.40 118.01 115.40 Standard Deviation 12.43 11.76 15.90 15.83 23.01 23.14 33.35 33.41 Beta 1.05 1.00 0.99 1.00 Alpha 0.12 0,22 0.06 0,0 R-Squared 0.99 1.00 0.99 0.99 Sharpe Ratio 0.42 0.39 0.59 0.65 1.27 1.26 0.20 0.21 Treynor Ratio 5.01 9.32 29.45 6.59 Tracking Error 1.25 0.94 1.93 2.50 Information Ratio 0.61 0,93 0,02 0,1.6 -j 215 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 3/31/14 Portfolio Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 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 2.87 2.87 12.79 9.67 10.66 NCREIF ODCE 2.52 2.52 13.76 13.06 13.92 Asset Growth($000) Beginning Market Value 27,710 27,710 25,274 21,610 0 Net Contributions&Withdrawals 0 0 0 0 20,000 Gain/Loss+Income 796 796 3,232 6,896 8,506 Ending Market Value 28,506 28,506 28,506 28,506 28,506 216 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 3/31/14 Asset Allocation($000) Cash&Equiv $2 0.01% Real Estate $28,504 99.99% Risk/Return Analysis Periods from 9/10 to 3/14 Alpha -0.56 Beta 0.94 R-Squared 0.69 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 10.66 2.39 4.41 -1.96 1 NCREIF ODCE 13.92 1.62 8.51 T" 91-Day Treasury Bill 0.10 0.03 0.00 217 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/14 20% 18% 16% 14% ---0------- 12% ---Q------ ---A------ 10 8% ----------- 6% ----------- 4% ----------- 2 0% -2% -4% -6% -8% Last Last Last 2 Last 3 Qtr Year Years Years High 10.79 18.77 16.90 17.77 1st Qt 6.04 13.54 12.17 12.84 Median 3.09 9.49 10.03 10.44 3rd Qt 1.88 3.64 7.53 6.90 Low -3.93 -7.56 -2.29 -3.76 Multi Employer Property Trust Net Ret 2.87 12.79 8.88 9.67 Rank 53 29 67 57 O NCREIF ODCE Fund Index Net Ret 2.52 13.76 12.27 13.06 Rank 60 24 24 23 218 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% ----------- --------- ----------- ----------- -5% -10% -15% -20% 3/31/14 YTD 2013 2012 2011 High 10.79 17.59 29.13 24.92 I st Qt 6.04 13.23 16.89 15.96 Median 3.09 8.76 11.24 10.85 3rd Qt 1.88 2.71 4.94 2.35 Low -3.93 -8.19 -6.83 -15.56 M Multi Employer Property Trust Net Ret 2.87 11.83 4.70 12.99 Rank 53 34 77 42 O NCREIF ODCE Fund Index Net Ret 2.52 13.94 10.94 15.99 Rank 60 19 52 24 219 City of Clearwater Employees Pension Fund March 3 11 2014 Cumulative Performance Comparison Total Returns of Real Estate Portfolios 30% 25% 20% 15% 10% M 5 ________ __________ 0% -5% -10% 3/14 12113 9/13 6113 3/13 High 17.77 25.71 24.51 26.90 26.57 1 st Qt 12.84 14.52 15.27 17.03 16.61 Median 10.44 10.56 11.72 13.33 12.98 3rd Qt 6.90 6.56 6.93 6.08 5.35 Low -3.76 -6.11 -4.75 -6.99 -8.63 M Multi Employer Property Trust Net Ret 9.67 9.78 10.33 Rank 57 54 59 1 NCREIF ODCE Net Ret 13.06 1 3.61 1 4.27 Rank 23 30 30 Multi Employer Property Trust Value Added Analysis - Net of Fee 1.0% 0.3 0.0% 0.0 0.0 -0.3 -0.2 _1 O% -0.5 -0.5 2.0% -3.0% ?.4 -4.0% -5.0% -6.0% -7.0% -8.0% -9.0% -10.0% -1 1.0% 12/10 3/11 6/11 9/11 12/11 3/12 6112 9/12 12/12 3/13 6113 9/13 12/13 3/14 ® Quarterly Value Added vs.NCREIF ODCE ® Cumulative Value Added - 2 Yr Rolling Avg(Annnahi ed) 220 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 3/31/14 30.0 25.0 20.0 0 15.0 • • • .� 10.0 • . . �• Median •• • • t• . Return ti .. � 5.0 • Q 0.0 -5.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Multi Employer Property Trust 9.67 57 2.17 17 1 NCREIF ODCE 13.06 23 1.32 5 Median 10.44 7.71 221 City of Clearwater Employees Pension Fund Risk Measure Summary Multi Employer Property Trust Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 1 0 1 0 Positive Periods 4 4 11 12 13 14 Up Market Capture 0.93 0.74 0.77 Down Market Capture Batting Average 0.25 0.08 0.07 Worst Quarter 2.64 2.52 0,1.2 2.35 0,1.2 2.35 Best Quarter 3.53 3.86 3.53 4.62 4.72 4.99 Worst 4 Quarters 12.79 13.76 4.70 10.79 4.70 10.79 Best 4 Quarters 12.79 13.76 12.79 14.66 15.44 18.27 Standard Deviation 0.77 1.16 2.17 1.32 2.39 1.62 Beta 0.85 0.87 0.94 Alpha 0.25 0,38 0,56 R-Squared 0.87 0.59 0.69 Sharpe Ratio 16.51 11.83 4.41 9.80 4.41 8.51 Treynor Ratio 14.90 10.99 11.18 Tracking Error 1.37 1.61 1.51 Information Ratio 0,65 1,92 1.9 222 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 3/31/14 Portfolio Performance 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 0.00 15.03 4.78 NCREIF Timberland Index 1.62 1.62 9.78 6.95 Asset Growth($000) Beginning Market Value 7,579 7,579 6,212 111 Net Contributions&Withdrawals 0 0 453 6,520 Gain/Loss+Income 0 0 914 948 Ending Market Value 7,579 7,579 7,579 7,579 223 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 3/31/14 Asset Allocation($000) Real Estate im $7,579 100.00% is Risk/Return Analysis(Number of returns<12) Periods from 6/11 to 3/14 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 M. -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 4.78 5.58 0.84 -0.34 1 NCREIF Timberland Index 6.95 5.04 1.36 T" 91-Day Treasury Bill 0.08 0.02 0.00 224 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/14 20% 18% 16% 14% 0, M ----------- 12% 10% ----------- 8% ----------- 1 1 6% ----------- 4% --------- ----------- 0% -2% -4% -6% -8% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 10.79 14.73 17.33 18.77 1st Qt 6.04 8.89 10.12 13.54 Median 3.09 5.70 7.64 9.49 3rd Qt 1.88 3.68 5.74 3.64 Low -3.93 -5.44 -5.52 -7.56 Molpus Woodlands Group Net Ret 0.00 3.16 6.65 15.03 Rank 88 80 61 13 1 NCREIF Timberland Index Net Ret 1.62 7.64 8.77 9.78 Rank 78 30 39 48 225 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% 01 1 1 5% ----------- 0% M -1------- ----------- -5% -10% 3/31/14 YTD 2013 2012 High 10.79 17.59 29.13 1st Qt 6.04 13.23 16.89 Median 3.09 8.76 11.24 3rd Qt 1.88 2.71 4.94 Low -3.93 -8.19 -6.83 M Molpus Woodlands Group Net Ret 0.00 15.16 0.77 Rank 88 13 86 1 NCREIF Timberland Index Net Ret 1.62 9.68 7.75 Rank 78 46 67 226 City of Clearwater Employees Pension Fund Risk Measure Summary Molpus Woodlands Group Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 5 1 5 1 Positive Periods 4 4 6 10 6 10 Up Market Capture 1.54 0.71 Down Market Capture 1.96 Batting Average 0.50 0.27 0.27 Worst Quarter 0.00 0.93 1..35 0,35 1.,35 0, Best Quarter 7.86 5.92 7.86 5.92 7.86 5.92 Worst 4 Quarters 15.03 9.78 2,71. 1.13 2,71. 1.13 Best 4 Quarters 15.03 9.78 15.16 9.78 15.16 9.78 Standard Deviation 6.46 4.76 5.38 4.30 Beta 0.17 0.17 Alpha 3.19 0.89 R-Squared 0.01 0.02 Sharpe Ratio 2.31 2.04 0.87 1.60 Treynor Ratio 90.64 27.29 Tracking Error 8.77 6.49 Information Ratio 0.53 0,34 -j 227 City of Clearwater Employees Pension Fund Hancock as of 3/31/14 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 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 0.00 11.19 9.08 NCREIF Timberland Index 1.62 1.62 9.78 10.29 Asset Growth($000) Beginning Market Value 3,766 3,766 3,387 1,263 Net Contributions&Withdrawals 0 0 -15 1,938 Gain/Loss+Income 0 0 394 565 Ending Market Value 3,766 3,766 3,766 3,766 228 City of Clearwater Employees Pension Fund Hancock as of 3/31/14 Asset Allocation($000) Real Estate im $3,766 100.00% is Risk/Return Analysis(Number of returns<12) Periods from 6/12 to 3/14 Alpha N/A Beta N/A R-Squared N/A 11.0 10.0 9.0 8.0 7.0 6.0 5.0 N 4.0 3.0 2.0 Q 1.0 0.0 -1.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio H Hancock 9.08 10.73 0.84 -0.09 1 NCREIF Timberland Index 10.29 5.99 1.70 T" 91-Day Treasury Bill 0.09 0.02 0.00 229 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 3/14 20% 18% 16% 14% ----------- 12% 10% 8% ----------- 1 1 6% ----------- 4% ----------- ----------- 2% ---3------- 0 -2% -4% -6% -8% Last Last 2 Last 3 Last 4 Qtr Qtrs Qtrs Qtrs High 10.79 14.73 17.33 18.77 1st Qt 6.04 8.89 10.12 13.54 Median 3.09 5.70 7.64 9.49 3rd Qt 1.88 3.68 5.74 3.64 Low -3.93 -5.44 -5.52 -7.56 Hancock Net Ret 0.00 11.90 11.53 11.19 Rank 88 8 15 41 1 NCREIF Timberland Index Net Ret 1.62 7.64 8.77 9.78 Rank 78 30 39 48 230 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 ----------- 0 -2% -4% -6% -8% -10% 3/31/14 YTD 2013 High 10.79 17.59 1st Qt 6.04 13.23 Median 3.09 8.76 3rd Qt 1.88 2.71 Low -3.93 -8.19 H Hancock Net Ret 0.00 8.91 Rank 88 49 1 NCREIF Timberland Index Net Ret 1.62 9.68 Rank 78 46 231 City of Clearwater Employees Pension Fund Risk Measure Summary Hancock Quarterly Periods Ending 3/31/14 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 0 3 0 Positive Periods 3 4 4 7 Up Market Capture 1.20 0.96 Down Market Capture Batting Average 0.25 0.29 Worst Quarter 0,33 0.93 1,83 0.75 Best Quarter 11.90 5.92 11.90 5.92 Worst 4 Quarters 11.69 9.78 5.88 9.35 Best 4 Quarters 11.69 9.78 11.69 9.78 Standard Deviation 11.97 4.76 10.62 4.67 Beta 2.18 1.99 Alpha 2,24 2,50 R-Squared 0.93 0.88 Sharpe Ratio 0.97 2.04 0.93 2.21 Treynor Ratio 5.33 4.96 Tracking Error 7.27 6.29 Information Ratio 0.28 0,03 232 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. 233 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, 234 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 235 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. 236