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EMPLOYEES PENSION PLAN - PERFORMANCE REVIEW - SECOND QUARTER Eric W. Bailey, CFA John J. Griffith Managing Principal Senior Investment Consultant CITY OF CLEARWATER EMPLOYEES PENSION PLAN PERFORMANCE REVIEW JUNE 30, 2013 102 W. Whiting Street, Suite 400, Tampa, FL 33602-5140 ♦ Tel: 813/218-5000 TABLE OF CONTENTS Important Disclaimer Information 1 Capital Markets Review 2 Fund Overview 3 Performance Review Total Fund 4 Domestic Equity 5 International Equity 6 Fixed Income 7 Real Estate 8 Appendix 9 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 2 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. IndexQTR YTD1 Yr3 Yr5 Yr10 Yr Domestic Fixed Income 3 Month T-Bill0.01%0.04%0.09%0.09%0.20%1.69% Barclays Capital 1-3 year Gov't-0.11%0.02%0.34%0.86%2.06%2.69% Barclays Capital Interm Gov't-1.37%-1.23%-0.59%2.33%3.80%3.70% Barclays Capital Interm Credit-2.30%-1.84%1.96%4.75%6.26%4.75% Barclays Capital Interm Govt/Cred-1.70%-1.45%0.28%3.14%4.58%4.03% Barclays Capital Aggregate Bond-2.33%-2.44%-0.69%3.51%5.19%4.52% Domestic Equity Standard & Poor's 5002.91%13.82%20.60%18.45%7.01%7.30% Dow Jones Industrial Average2.92%15.20%18.87%18.23%8.64%7.92% Dow Jones US Total Full Cap2.77%13.97%21.10%18.45%7.19%7.95% Dow Jones US Select REIT -1.29%5.66%7.69%18.08%6.97%10.68% Russell 1000 - Large Cap2.65%13.91%21.24%18.63%7.12%7.67% Russell 1000 Growth - Large Cap2.06%11.80%17.07%18.68%7.47%7.40% Russell 1000 Value - Large Cap3.20%15.90%25.32%18.51%6.67%7.79% Russell Midcap2.21%15.45%25.41%19.53%8.28%10.65% Russell Midcap Growth2.87%14.70%22.88%19.53%7.61%9.94% Russell Midcap Value1.65%16.10%27.65%19.53%8.87%10.92% Russell 2000 - Small Cap3.09%15.86%24.21%18.67%8.77%9.53% Russell 2000 Growth - Small Cap3.74%17.44%23.67%19.97%8.89%9.62% Russell 2000 Value - Small Cap2.47%14.39%24.77%17.33%8.60%9.30% International Equity MSCI EAFE-0.98%4.11%18.62%10.04%-0.63%7.67% MSCI World0.65%8.43%18.58%13.72%2.70%7.25% MSCI EM -9.14%-10.89%0.32%0.81%-2.86%10.95% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg-0.76%2.44%5.70%7.99%5.74%5.35% 40% S&P 500 / 60% Barclays Agg-0.23%4.06%7.83%9.49%5.92%5.63% 50% S&P 500 / 50% Barclays Agg0.29%5.69%9.96%10.98%6.10%5.91% 60% S&P 500 / 40% Barclays Agg0.81%7.32%12.08%12.47%6.28%6.19% 70% S&P 500 / 30% Barclays Agg1.34%8.94%14.21%13.97%6.46%6.47% 3 CAPITAL MARKETS REVIEW –JUNE 30, 2013 CapitalMarketsOverview Domesticmarketscontinuedtoimprovethisquarter,butinvestorsshowedsomesignsofanxietyandwerequick toreacttoanynewsdeemeddetrimentaltosustainablemarketadvances.Theequitymarketsposted uncharacteristicgainsforthemonthofMayuntiltheFedreleasedcommentarythatcausedspeculation surroundingareducedcommitmenttotheirbond-buyingprogram.TheuncertaintyintheFed’scommentsledto sharpselloffsinboththedebtandequitymarkets.ThisactionoccurreddespitetheFed’sstatedcommitmentto maintaincurrentratesuntilunemploymentdropsbelow6.5%.Junebroughtmuchofthesameaction.Theequity marketsadvancedearlyinthemonthbutwereonceagainupsetbycommentsfromFedChairmanBernanke.The Fedwasquicktosootheinvestorconcernsandthemarketsquicklyrebounded. Albeitwithmodestlosses,theS&P500,Dow,andNASDAQindexaveragesallsawtheirmonthlywinning streakscometoanendinJune.TheS&P500Indexlost1.3%inJune,butstillfinishedhigherforthequarter,up 2.9%and13.8%year-to-date.TheDowJonesIndustrialAveragelost1.2%(totalreturn)inJuneandequaledthe S&P’spositivereturnforthequarter,up2.9%.Year-to-datetheDowisupmorethan15%.TheNASDAQlost 1.4%duringJune,butremainedpositiveforthequarterandyear-to-date,up4.5%and13.4%respectively. Bondyieldsincreasedthisquarterwiththe10-yearTreasurynoterising42basispointsinJunetoclosethe quarterat2.49%.The30-yearbondalsosawitsyieldincrease31basispointstocloseat3.59%.Bondprices reactedtoFedcommentaryandinvestor’sconfidence inimprovingeconomicnumbers.U.S.Governmentdebt,as measuredbytheBarclaysGovernmentAggregateBondIndexwasdown2.3%forthequarter. Ontheinternationalfront,thegoodnewsisthattheEurozoneeconomydidn’tgetanyworsethisquarter. EuropeanstocksralliedinMaysupportedbyanaccommodativemonetarypolicy;butremainsweakonnewsof lowergrowthprojections,acontinuedsoftbutimprovingmanufacturingclimate,andfeartheU.S.Fedmay changeitsquantitativeeasingpolicy.Greece,ItalyandSpainremainintheheadlineswiththefirsttwo experiencingdoubledigitdeclinesin theirrepresentativeindicesthisquarter.Afterwhatwasshapinguptobea solidquarterintheEurozone,theMSCIEUindexlost5.24%inJuneandpostedamodestlostforthesecond quarter,down0.12%. Japan,whichacknowledgeditsownU.S.styleofquantitativeeasinglastquarter,sufferedadownwardslidein lateMay/earlyJunebasedontheU.S.Fedcommentsaswellasthenew“Abenomics”,thesonamedeconomic policyadvocatedbyJapan’sPrimeMinisterShinzoAbe.TheMSCIJapanindexwasstillup16.6%attheendof thefirsthalfof2013. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:WellsFargoSecurities,LLC,ZephyrStyleAdvisor,Barclay’sCapital,MSCIBarra,Standard&Poor’s Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. 4 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:WellsFargoSecurities,LLC,ZephyrStyleAdvisor,Barclay’sCapital,MSCIBarra,Standard&Poor’s,FactSet Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. OtherPacificRimmarketsexperiencedlossesthisquarter.Chinacontinuestomanageaslowingeconomyand risingshort-termrates.TheMSCIChinaindexlost6.54%duringthesecondquarter.Emergingmarkets followedtheU.S.economyandthewordsofFedChairmanBenBernankecloselythisquarter.Astheworld’s largesteconomytalkedaboutchangesinQE,thevolatileemergingmarkets,alreadyweakened,bracedfora changeinexchangeratesandarenowoffmorethan9.60%(gross)fortheyearasmeasuredbytheMSCI EmergingMarkets(EM)index. Commoditiesremainedweakthisquarter.TheReuters/JefferiesCRBindexisdown6.57%year-to-date. Preciousmetalsledthedecline.Goldsuffereditsthirdstraightmonthlydeclineastreasuryyieldsincreasedand inflationaryfearssubsided.Goldlost11.6%inJuneand22.81%forthequarter.Silverlostslightlymorethan 12%forthequarterandisdownmorethan35%sincethe beginningoftheyear.Copperpricesfluctuatedthis quarterduelargelytosupplyconcernsrelatedtoaminingaccidentatIndonesia’ssecondlargestmine.Copper pricesdeclined10%thisquarterandaredown15.9%fortheyear.Crudeoilwasup,andthedollargained slightlyagainstitsmajorcounterparts.TheU.S.DollarIndexisup4.28%year-to-date. U.S.equitymarketscontinuedtobuildonfirstquartergainsdespiteapullbackinJunefollowingthe FederalReserve’sannouncement ¾TheS&P500rose2.91%forthequarterandreached anall-timeclosinghighof1,669.16onMay21st beforeclosingthequarterat1,606.28. ¾TheRussell2000Growthleadsthewayforthequarter,up3.7%,andfor2013,up17.4%. ¾Value(asmeasuredbytheRussell3000Valueindex)hasnowoutperformedGrowthineachofthelastfive quarters(cumulativereturnof22.4%vs.12.8%). 2013 Year-To-Date Domestic Equity Returns ValueGrowth Ru s s e l l 10 0 0 15.913.911.8 Ru s s e l l Mi d c a p 16.115.514.7 Ru s s e l l 20 0 0 14.415.917.4 -10-50510 Second Quarter Domestic Equity Returns ValueGrowth Ru s s e l l 10 0 0 3.22.72.1 Ru s s e l l Mi d c a p 1.72.22.9 Ru s s e l l 20 0 0 2.53.13.7 -10-50510 5 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:FactSet,ZephyrStyleAdvisor,MSCIBarra,Standard&Poor’s Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Whilenotasstrongasthefirstquarter,mostsectorsoftheS&P500continuedtopostsolidgainsthis quarter ¾FinancialsandConsumerDiscretionarywerethetopperformersinthesecondquarterand(alongwithHealth Care)havebeenthestrongperformersin2013andoverthepastyear. ¾Netflix,BestBuy,MicronTechnologyandHewlett-Packardhavehadsolidreturnsin2013whileCliffs NaturalResources,PeabodyEnergy,NewmontMining,andApplehavestruggled. 2.9% 6.8% 0.5% -0.4% 7.3% 3.8%2.8%1.7% -1.8% 1.0% -2.7% 13.8% 19.8% 15.2% 9.8% 19.5%20.3% 13.8% 6.4% 2.9% 10.6%9.9% 20.6% 31.4% 17.5%17.6% 35.4% 27.8% 22.3% 7.7% 11.1%12.3% 6.2% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% S&P 500Consumer StaplesFinancialsIndustrialsMaterialsUtilities 2Q13 Returns YTD Returns Trailing 1 Year Returns 6 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:WellsFargoAdvisors,JPMorganAssetMgmt.,MSCI Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Internationalmarketsaboutlocation,location,location ¾ThoughtheEurozoneremainssoftandvolatile,returns acrossspecificcountrieshavebeenbetterthan expectedreflectingvariousareasofimprovement.TheMSCIEUwasdown5.24%inJune. ¾Japansaw“Abenomics”,andotheritems,triggeralargeselloffstartinginlateMayeventhoughthemarkets sawa2Qreturnof4.42%andYTDof16.64%. ¾QuantitativeeasinginboththeEurozoneandJapanhasslowed,thoughfurthereasinghasbeensignaledif necessary. MSCI Japan Index Country/RegionLocalUSDLocalUSD Regions/Broad Indexes USA  (S&P 500)‐2.9 ‐13.8 EAFE1.4 ‐0.711.44.5 Europe  ex‐U.K.0.40.96.24.0 Pacific ex‐Japan ‐2.9 ‐10.93.9 ‐4.6 Emerging Markets ‐4.3 ‐8.0 ‐4.7 ‐9.4 MSCI:Selected Countries United  Kingdom ‐2.0 ‐2.17.50.3 France2.23.55.64.1 Germany2.23.45.23.7 Japan10.24.434.016.6 China ‐6.6 ‐6.5 ‐10.7 ‐10.8 India3.2 ‐5.6 ‐0.2 ‐8.0 Brazil ‐9.3 ‐17.2 ‐11.4 ‐17.8 Russia ‐4.1 ‐8.3 ‐5.8 ‐11.2 2Q13YTD 7 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:WellsFargoAdvisors,JPMorganAssetMgmt.,OppenheimerFunds,MSCI Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. EmergingMarketsarereflectingUSspendingandpolicy ¾WhileChinahasseenariseinshort-termrates,itistryingtotemperincreasingdebtwhilestimulating spending. ¾Withalreadyslowinggrowth,newsfromtheU.S.Fedhaddramaticresultsonthe2nd quarterreturnsinthe EMmarkets. ¾Worldwidemonetaryeasinghascreatedinterestratesatmulti-yearlowsandaresupportingnewlendingand spending. ¾TheEMhavefallentocreatea25%discountbasedon2014forward-lookingP/Ecomparedwithdeveloping markets. 7.9 8.5 15.6 13.9 11 12.8 17.6 23.8 15.8 20.7 22.9 16.9 22.6 20.2 16.9 14.8 19.6 24.7 16.6 19.3 0 5 10 15 20 25 30 ItalySpainChinaEurope ex  UK BrazilUKCanadaIndonesiaAustraliaU.S. Cyclically Adjusted Price‐to Earnings (CAPE) Ratio Current P/E Historical Median P/E 8 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:FactSet,FederalReserve,BloombergLP,WellsFargoSecurities,LLC,ZephyrStyleAdvisor,Barclays Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. FedCommentsCauseforConcerninBondMarkets ¾The10-yearnotesufferedasharpselloffasitsyieldclimbedto2.49%thisquarterdrivenbycommentarythat raisedconcernstheFedwouldsoonslowitsbondbuyingprogram. ¾The10-yearnote’syieldincreased64basispointsduringthequarter.Thelargestquarterlyincreasesincethe fourthquarterof2010. Bondssufferlosesacrosscreditqualityand sectors ¾Fixedincomemarketsextendedtheirdeclinethis quarter.Losesrangedfrom–3.92%forthelowest investmentgradedebt(BBB)to-1.69%forAAA paper.Year-to-datereturnsforBBBratedbonds droppedto-4.10%,whileAAAratedbondslost 1.61%. ¾Bysector,corporatedebtsufferedthelargest declinethisquarter,down3.30%,followedby mortgagepaper,down1.96%.Governmentdebt lost1.88%andhighyielddebtlost1.87%. ¾Yieldsmovedhigherthisquarterbasedon improvingeconomicsentimentandfeartheFed wouldcurtailitsbondbuyingprogram. 1.40% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% U.S. 10-Year Treasury Yield 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 3 MO6 MO2 YR5  YR10  YR30 YRTr e a s u r y Y i e l d C u r v e 12/31/2010 12/31/2011 12/31/2012 6/30/2013 9 CAPITAL MARKETS REVIEW –JUNE 30, 2013 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Source:BloombergLP,FactSet,andWellsFargoAdvisors,LLC Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. CommoditiesContinuetoWeakenThisQuarter ¾Goldhaslostitslusterwithinvestors.Subduedinflationaryfears,hedgefundliquidationsand increasingtreasuryyieldshavediminishedthemetal’svaluetoinvestors.Goldisdown26.54% fortheyear. ¾TheeconomicslowdowninChinaandaprolongedslumpinglobalconstructionand manufacturingcontinuetoweighoncopperprices. ¾Crudepricesincreasedthisquarterduetotensionsinthemiddle-eastandanincreaseindemand. 120 125 130 135 140 145 150 155 DJ UBS Commodity Index Commodities Current 3 Months Ago 1 Year Ago 6/28/20133/29/20136/29/2012 Gold (per Troy ounce)$1,223.80 $1,594.80 $1,551.90 Oil (per barrel)$96.97 $97.23 $83.43 Co pper (per pound)$3.06 $3.40 $3.33 10 Russell1000Value containsthoseRussell1000(largercapitalization)securitieswithaless-than-averagegrowthorientation. Securitiesinthisindexgenerallyhavelowerprice-to-bookand price-to-earningsratios,higherdividendyields,andlower forecastedgrowthrates. Russell1000Growth containsthoseRussell1000(largercapitalization)securitieswithagreater-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavehigherprice-to-bookandprice-to-earningsratios,lowerdividendyields, andhigherforecastedgrowthrates. Russell2000Value containsthoseRussell2000(smallercapitalization)securitieswithaless-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavelowerprice-to-bookandprice-to-earningsratiosthanthoseintheRussell 2000GrowthIndex. Russell2000Growth containsthoseRussell2000(smallercapitalization)securitieswithagreater-than-averagegrowth orientation.Securitiesinthisindexgenerallyhavehigherprice-to-bookandprice-to-earningsratiosthanthoseintheRussell 2000ValueIndex. MSCIEAFE istheMorganStanleyCapitalInternationalEurope,Australia,FarEastIndexdesignedtomeasurethe performanceofdevelopedstockmarketsintheseareas. BarclaysAggBond istheLehmanBrothersAggregateBondIndex.ThisindexincludesU.S.government,corporateand mortgage-backedsecuritiesratedinvestmentgradeorhigherwithmaturitiesupto30years. S&P500 isarepresentativesampleof500leadingcompaniesinleadingindustriesoftheU.S.economy. DJWilshireREIT isintendedasabroadmeasureoftheperformanceof publiclytradedrealestateequity.Theindexis comprisedofcompanieswhosecharteristheequity ownershipandoperationofcommercialrealestate. CAPITAL MARKETS REVIEW –JUNE 30, 2013 CAPITAL MARKET INDEX RETURNS Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. 19941995199619971998199920002001200220032004200520062007200820092010201120122013 Russell DJ Russell Russell Russell DJ Russell BarclaysRussell DJ DJ DJ Russell BarclaysRussell Russell DJ Russell Russell BEST 1000 Wilshire 1000 10002000Wilshire 2000Agg2000Wilshire Wilshire Wilshire 1000Agg10002000Wilshire 20002000 Value REIT Value GrowthGrowthREITValueBondGrowthREITREITREITGrowthBondGrowthGrowthREITValueGrowth 8.06%38.35%37.04%35.18%38.71%43.09%31.04%13.96%10.27%48.53%33.14%14.00%36.13%11.81%5.24%37.21%29.09%9.37%18.05%17.44% Russell Russell Russell Russell DJ DJ Russell Russell Russell Russell DJ Barclays Russell Russell 1000100010002000Wilshire Wilshire 2000200020002000Wilshire Agg 10001000 GrowthGrowthGrowthValueREITREITValueValueValueGrowthREITBond ValueValue 2.66%37.53%23.12%33.35%28.57%33.16%22.83%12.36%3.60%46.02%22.25%13.54%26.34%11.17%-28.92%34.47%28.07%7.84%17.51%15.90% DJ Russell Russell BarclaysBarclaysRussell Russell Russell Russell Russell Russell Russell Russell Wilshire 10002000AggAgg2000 1000 20002000 1000 200010002000 REITGrowthValueBondBondValue Value ValueGrowth Value ValueGrowthValue 2.66%37.19%22.94%31.78%20.33%27.30%11.63%8.44%-11.42%39.16%20.25%7.05%23.48%7.05%-36.85%31.78%24.50%2.64%17.32%14.39% Russell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell BarclaysDJ Russell DJ 2000 1000 1000 1000100010001000 Wilshire 1000 1000 1000 AggWilshire 1000Wilshire Growth Value Growth ValueValueValueValue REIT Value Growth Value BondREITGrowthREIT 1.31%31.04%21.64%30.49%15.63%21.04%7.01%-5.59%-15.52%36.06%16.49%5.26%22.25%6.97%-37.00%28.46%16.71%2.11%17.12%13.82% Russell Russell Russell DJ Barclays Russell Russell Russell Russell Russell Russell Russell Russell 200020002000Wilshire Agg 1000 2000 1000 20001000 10001000 1000 ValueValueValueREITBond Value Growth Value GrowthGrowth ValueValue Growth -1.55%25.75%21.37%19.67%8.67%7.35%-9.10%-9.22%-15.94%30.03%14.31%4.91%15.79%5.49%-38.44%26.46%15.51%0.39%16.00%11.80% Russell BarclaysRussell Russell Russell DJ Russell Russell Russell Russell Russell Russell Russell Russell DJ 1000 Agg200020002000Wilshire 100020002000 1000 2000200020001000Wilshire Value BondGrowthGrowthGrowthREITGrowthValueGrowth Value GrowthValueGrowthGrowthREIT -1.99%18.48%11.26%12.95%1.23%-2.57%-13.96%-11.88%-22.09%29.76%10.87%4.71%13.35%-0.17%-38.54%20.58%15.06%-2.91%15.26%5.94% Russell DJ BarclaysRussell BarclaysRussell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell 2000Wilshire Agg2000Agg1000100010001000200010002000Wilshire 1000 20002000 GrowthREITBondValueBondGrowthGrowthGrowthGrowthGrowthGrowthValueREIT Value ValueGrowth -2.44%12.24%6.36%9.68%-6.46%-0.83%-22.42%-20.42%-27.89%28.67%6.30%4.15%9.07%-9.78%-39.20%19.69%7.75%-5.50%14.59%4.47% BarclaysBarclaysDJ Russell Russell Russell BarclaysBarclaysBarclaysBarclaysDJ BarclaysBarclaysBarclaysBarclays AggAggWilshire 200020002000AggAggAggAggWilshire AggAggAggAgg WORST BondBondREITValueGrowthGrowthBondBondBondBondREITBondBondBondBond -2.92%11.55%3.61%2.06%-17.00%-1.49%-22.43%-22.00%-30.27%4.11%4.34%2.43%4.33%-17.56%-45.09%5.93%6.54%-12.14%4.22%-2.44% S&P 500 MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE S&P 500 MSCI EAFE S&P 500 S&P 500 S&P 500 MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE S&P 500 S&P 500 S&P 500 MSCI EAFE S&P 500 MSCI EAFE S&P 500 S&P 500 MSCI EAFE MSCI EAFE MSCI EAFE S&P 500 MSCI EAFE MSCI EAFE S&P 500 S&P 500 S&P 500 S&P 500 11 CAPITAL MARKETS REVIEW –JUNE 30, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -60 -40 -20 0 20 40 60 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Domestic Equity vs. Fixed Income Mean 1 Standard Deviation 2 Standard Deviations Fixed Income Outperforming Domestic Equity OutperformingDomestic Equity vs. Fixed Income Invasion of Iraq Asian Crisis Black Monday -Oct '87 Aug '82 –DJIA 776 -60 -40 -20 0 20 40 60 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Domestic Equity vs. Foreign Equity Mean 1 Standard Deviation 2 Standard Deviations Foreign Equity Outperforming Domestic Equity OutperformingDomestic Equity vs. Foreign Equity 12 CAPITAL MARKETS REVIEW –JUNE 30, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -40 -20 0 20 40 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Large Cap vs. Small Cap Mean 1 Standard Deviation 2 Standard Deviations Small Cap Outperforming Large Cap OutperformingLarge Cap vs. Small Cap -60 -40 -20 0 20 40 60 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Large Value vs. Large Growth Mean 1 Standard Deviation 2 Standard Deviations Growth Outperforming Value OutperformingLarge Value vs. Large Growth 13 CAPITAL MARKETS REVIEW –JUNE 30, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -60 -40 -20 0 20 40 60 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Small Value vs. Small Growth Mean 1 Standard Deviation 2 Standard Deviations Growth Outperforming Value OutperformingSmall Value vs. Small Growth Growth Outperforming Value Outperforming -80 -60 -40 -20 0 20 40 60 80 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Domestic Equity vs. REIT Mean 1 Standard Deviation 2 Standard Deviations REIT Outperforming Domestic Equity OutperformingDomesticEquity vs. REIT 14 CAPITAL MARKETS REVIEW –JUNE 30, 2013 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeasto itsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 120 12 / 7 9 - 1 2 / 8 0 12 / 8 0 - 1 2 / 8 1 12 / 8 1 - 1 2 / 8 2 12 / 8 2 - 1 2 / 8 3 12 / 8 3 - 1 2 / 8 4 12 / 8 4 - 1 2 / 8 5 12 / 8 5 - 1 2 / 8 6 12 / 8 6 - 1 2 / 8 7 12 / 8 7 - 1 2 / 8 8 12 / 8 8 - 1 2 / 8 9 12 / 8 9 - 1 2 / 9 0 12 / 9 0 - 1 2 / 9 1 12 / 9 1 - 1 2 / 9 2 12 / 9 2 - 1 2 / 9 3 12 / 9 3 - 1 2 / 9 4 12 / 9 4 - 1 2 / 9 5 12 / 9 5 - 1 2 / 9 6 12 / 9 6 - 1 2 / 9 7 12 / 9 7 - 1 2 / 9 8 12 / 9 8 - 1 2 / 9 9 12 / 9 9 - 1 2 / 0 0 12 / 0 0 - 1 2 / 0 1 12 / 0 1 - 1 2 / 0 2 12 / 0 2 - 1 2 / 0 3 12 / 0 3 - 1 2 / 0 4 12 / 0 4 - 1 2 / 0 5 12 / 0 5 - 1 2 / 0 6 12 / 0 6 - 1 2 / 0 7 12 / 0 7 - 1 2 / 0 8 12 / 0 8 - 1 2 / 0 9 12 / 0 9 - 1 2 / 1 0 12 / 1 0 - 1 2 / 1 1 12 / 1 1 - 1 2 / 1 2 Fixed Income vs. REIT Mean 1 Standard Deviation 2 Standard Deviations REIT Outperforming Fixed Income OutperformingFixed Income vs. REIT 15 FIRM:WellsFargoAdvisorsisthetradenameusedbytwoseparate,registeredbroker/dealersandnonbankaffiliatesof WellsFargo&Company,providingcertainretailsecuritiesbrokerageservices:WellsFargoAdvisors,LLC.,member FINRA,SIPC,andWellsFargoFinancialNetwork,LLC,memberFINRA,SIPC.Investmentsinsecuritiesandinsurance productsare:NOTFDIC-INSURED/NOTBANK-GUARANTEED/MAYLOSEVALUE. CONFLICTSOFINTEREST:Toreviewimportantinformationaboutcertainrelationshipsandpotentialconflictsof interestthatmayexistbetweenWellsFargoAdvisors,itsaffiliates,andthecompaniesthatarementionedinthisreport, pleasevisittheourresearchdisclosurepageat www.wellsfargoadvisors.com/gotoresearchdisclosures orcallyour FinancialAdvisor. STATEMENTOFOPINION:Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsources whichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Anyopinionsexpressedor impliedhereinarenotnecessarilythesameasthoseofWellsFargoAdvisorsoritsaffiliatesandaresubjecttochange withoutnotice.Thereporthereinisnotacompleteanalysisofeverymaterialfactinrespecttoanycompany,industryor security.Anymarketpricesareonlyindicationsofmarketvaluesandaresubjecttochange.Thematerialhasbeen preparedorisdistributedsolelyforinformationpurposesandisnotasolicitationoranoffertobuyanysecurityor instrumentortoparticipateinanytradingstrategy.Additionalinformationisavailableuponrequest. ASSETCLASSSUITABILITY:Stocksofsmallcompaniesaretypicallymorevolatilethanstocksoflargercompanies. Theyofteninvolvehigherrisksbecausetheymaylackthemanagementexpertise,financialresources,product diversificationandcompetitivestrengthstoendureadverseeconomicconditions.High-yield,non-investmentgradebonds areonlysuitableforaggressiveinvestorswillingtotakegreaterrisks,whichcouldresultinlossofprincipalandinterest payments.Global/Internationalinvestinginvolvesrisksnot typicallyassociatedwithUSinvesting,includingcurrency fluctuations,politicalinstability,uncertaineconomicconditionsanddifferentaccountingstandards. PASTPERFORMANCE:Pastperformanceisnotanindicationoffutureresults. ASSETCLASSPERFORMANCEREPRESENTATIONS:LongTermTreasuries=BCTreasuryLong;Municipals= BCMunicipal;ForeignBonds=SalomonWorldBIG–IB;US Govt/Credit=BCGovt/Credit;MtgeBackedSecurities= MLMortgageMaster;CorporateBonds=SalomonCorporate;90DayT-Bills=Salomon;JapaneseStocks=Salomon JapanBMI;HighYieldBonds=MLHighYieldMaster;SmallCapUSValue=RU2000Value;MidCapUSStocks= RUMidcap;LargeCapUSValue=RU1000Value;EuropeanStocks=SalomonEuropeBMI;SmallCapUSStocks= RU2000;LgCapUSGrowth=RU1000Growth;LatinAmericanStocks=SalomonLatinAmericaBMI;SmCapUS Growth=RU2000Growth BROADEQUITYMARKET&SECTORPERFORMANCEREPRESENTATIONS:Large-Cap=S&P500or Russell1000;Mid-Cap=RUMidcap;Small-Cap=RU2000;International=MSCIEAFE DATASOURCES:Informationfoundinthisdocumentwasderivedfromthefollowingsources:ZephyrAssociates StyleAdvisor,InformaM-Watch,InvestorForce,Barclays Capital,MSCIBarra,Standard&Poor’s,andMorningstar. CAPITAL MARKETS REVIEW –JUNE 30, 2013 GENERAL DISCLOSURE STATEMENT Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 16 CAPITAL MARKETS REVIEW –JUNE 30, 2013 GENERAL DISCLOSURE STATEMENT DowJonesIndustrialAverage -Thisindexiscomprisedof30"blue-chip"USstocksselectedfortheirhistoryofsuccessfulgrowthandwideinterestamonginvestors.TheDJIArepresentsabout20%ofthetotalmarketvalueofallUSstocksandabout25%oftheNYSEmarketcapitalization.It isaprice-weightedarithmeticaverage,withthedivisoradjustedtoreflectstocksplitsandtheoccasionalstockswitchesintheindex. NASDAQComposite -Acap-weightedindexcomprisedofallcommonstocksthatarelistedontheNASDAQStockMarket(NationalAssociationofSecuritiesDealersAutomatedQuotationsystem). S&P500 -Abroad-basedmeasurementofchangesinstockmarketconditionsbasedontheaverageperformanceof500widelyheldcommonstocks.Thisindexdoesnotcontainthe 500largestcompaniesnorthemostexpensivestockstradedintheU.S.Whilemanyofthestocksareamongthelargest,thisindexalsoincludesmanyrelativelysmallcompanies.Thisindexconsistsofapproximately380industrial,40utility,10transportationand70financialcompanieslistedonU.S.marketexchanges.Itisacapitalization-weightedindex(stockpricetimesnumberofsharesoutstanding),calculatedonatotalreturnbasiswithdividendsreinvested. S&P500/CitigroupGrowth -TheS&P/CitigroupGrowthtrackstheperformanceofthosestocksintheS&P500withlowerbook-to-priceratios.Acap-weightedindex,itisrebalancedsemi-annually,basedonitsprice-to-bookratiosandmarketcapitalizationsatthecloseoftradingonemonthprior.TheindexisadjustedeachmonthtoreflectchangesintheS&P500.Thisindexismoreheavilyweightedintheconsumer non-cyclical,healthcare,andtechnologysectorsthantheS&P500. S&P500/CitigroupValue -TheS&PCitigroup/ValuetrackstheperformanceofthosestocksintheS&P500withhigherbook-to-priceratios.Acap-weightedindex,itisrebalanced semi-annuallyonJanuary1andJuly1,basedonitsbook-to-priceratiosandmarketcapitalizationsatthecloseoftradingonemonthprior.TheindexisadjustedeachmonthtoreflectchangesintheS&P500.ThisindextendstobemoreheavilyconcentratedintheenergyandfinancialsectorsthantheS&P500. Russell1000 -The1000largestcompaniesintheRussell3000index,basedonmarketcapitalization. Russell1000Growth -AsegmentoftheRussell1000withagreater-than-averagegrowthorientation.Companiesinthisindexhavehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthantheRussell1000Valueindex. Russell1000Value -RepresentsasegmentoftheRussell1000withaless-than-averagegrowthorientation.Companiesinthisindexhavelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvaluesthantheRussell1000GrowthIndex. RussellMidCap -Theindexconsistingofthebottom800securitiesintheRussell1000asrankedbytotalmarketcapitalization,anditrepresentsover35%oftheRussell1000totalmarketcap. Russell2000 -The2000smallestcompaniesintheRussell3000index. Russell2000Growth -AsegmentoftheRussell2000withagreater-than-averagegrowthorientation.Companiesinthisindexhavehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthantheRussell2000Valueindex. Russell2000Value -AsegmentoftheRussell2000withaless-than-averagegrowthorientation.Companiesinthisindexhavelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvaluesthantheRussell2000Growthindex. Russell2500 -Theindexconsistingofthebottom500stocksintheRussell1000(asrankedbymarketcapitalization)andallofthestocksintheRussell2000.Thisindexisintendedtobeusedasameasureofsmalltomedium/smallstockperformance,anditrepresentsover22%oftheRussell3000totalmarketcap. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 17 CAPITAL MARKETS REVIEW –JUNE 30, 2013 GENERAL DISCLOSURE STATEMENT MSCIEAFE -Amarketcapitalization-weightedindexrepresentingalloftheMSCIdevelopedmarketsoutsideNorthAmerica.Itcomprises20ofthe22countriesintheMSCIWorld.These20countriesincludethe14EuropeancountriesintheMSCIEuropeandthe6PacificcountriesintheMSCIPacific.Thisindexiscreatedbyaggregatingthe20differentcountryindexes,allifwhicharecreatedseparately. MSCIWorld -Thismarketcapitalization-weightedindexrepresentsall22oftheMSCIdevelopedmarketsintheworld.Itiscreatedbyaggregatingthe22differentcountryindexes,allifwhich arecreatedseparately. MSCIEmergingMarketsFree(EMF)-Amarketcapitalization-weightedindexrepresenting26oftheemergingmarketsintheworld.Severalfactorsareusedtodesignatewhetheracountryisconsideredtobeemergingvs.developed,themostcommonofwhichisGrossDomesticProductPerCapita.The"Free"aspectindicatesthatthisindexincludesonlysecuritiesthatareallowedtobepurchasedbyglobalinvestors.Thisindexiscreatedbyaggregatingthe26differentcountryindexes,allifwhicharecreatedseparately. BarclaysCapitalGovernment/Credit -ThisindexincludesallbondsthatareintheBarclaysCapitalGovernmentBondandtheBarclaysCapitalCreditBondindices. BarclaysCapitalGovernmentIntermediate -AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwithmaturitiesof1and10years. BarclaysCapitalAggregateBond -ThisindexismadeupoftheBarclaysCapitalGovernment/Credit,theMortgage-BackedSecurities,andtheAsset-BackedSecuritiesindices.Allissuesintheindexareratedinvestmentgradeorhigher,haveatleastoneyeartomaturity,andhaveanoutstandingparvalueofatleast$100million. BarclaysCapitalGovernmentLongTerm -AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwithmaturitiesof10yearsorgreater. BarclaysCapitalMunicipalBond -Thismarketcapweightedindexincludesinvestmentgradetax-exemptbondsandisclassifiedintofourmainsectors:GeneralObligation,Revenue,Insured,andPre-refunded.Tobeincludedinthisindex,theoriginaltransactionsizeofabondmusthavebeengreaterthan$50million. MerrillLynchConvertibles -Theconvertiblesecuritiesusedinthisindexspanallcorporatesectorsandmusthaveaparamountoutstandingof$25millionormore.Thematuritymustbeatleastoneyear.Thecouponrangemustbeequaltoorgreaterthanzeroandallqualityofbondsareincluded.Excludedfromthisindexarepreferredequityredemptionstocks.Whenthecomponentbondsofthisindexconvertintocommonstock,theconvertedsecuritiesaredroppedfromtheindex. MerrillLynchHighYieldMaster -Market-capweightedindexprovidingabroad-basedmeasureofbondsintheUSdomesticbondmarketratedbelowinvestmentgradebutnotindefault.IncludesonlyissueswithacreditratingofBB1orbelowasratedbyMoody’sand/orS&P,atleast$100millionin facevalueoutstandingandaremainingtermtofinalmaturityequaltoorgreaterthanoneyear. DowJonesWilshireREITIndex -AmeasurementofequityREITsandRealEstateOperatingCompanies.Nospecial-purposeorhealthcareREITsareincluded.It isamarketcapitalization-weightedindexforwhichreturnsarecalculatedmonthlyusingbuyandholdmethodology;itisrebalancedmonthly. Citigroup3MonthTreasuryBill-Representingthemonthlyreturnequivalentsofyieldaveragesthatarenotmarkedtomarket,thisindexisanaverageofthelastthreethree-monthTreasurybillissues. 50/50Blend(S&P500/BCIGC)–Ablendedbenchmarkconsistingof50%S&P500and50%BarclaysCapitalGovernment/CreditIntermediateindices. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy.Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 6/30/13 Manager Market Value Actual % Policy % ING Investment Mgmt NTGI-QM R1000V Eagle Capital Management Manning and Napier Artisan Partners Wedge Capital Mgmt Atlanta Capital Mgmt Systematic Financial Mgt Riverbridge Partners Total Domestic Equity Earnest Partners WHV Eaton Vance Mgmt Total International Equity Dodge & Cox Western Asset Management Co. Security Lending Income Account In House Account Total Domestic Fixed Income Multi Employer Property Trust Security Capital Molpus Woodlands Group Hancock Total Real Estate Total Fund 106,383,230.52 38,912,797.00 36,343,695.47 35,407,583.74 48,692,069.71 46,207,948.44 14,257,529.15 14,850,304.13 28,407,392.94 369,462,551.10 38,678,473.52 31,607,196.65 35,452,983.27 105,738,653.44 113,142,593.14 89,279,354.79 49,401.14 4,591,191.78 207,062,540.85 25,942,096.49 45,132,067.07 6,211,789.00 3,154,006.00 80,439,958.56 762,703,703.95 13.95 5.10 4.77 4.64 6.38 6.06 1.87 1.95 3.72 48.44 5.07 4.14 4.65 13.86 14.83 11.71 0.01 0.60 27.15 3.40 5.92 0.81 0.41 10.55 100.00 42.00 18.00 30.00 10.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 3/31/13 - 6/30/13 Manager Name Beginning Value Net Contrib Invest Fees Invest Gain/Loss Ending Value ING Investment Mgmt NTGI-QM R1000V Eagle Capital Management Manning and Napier Artisan Partners Wedge Capital Mgmt Atlanta Capital Mgmt Systematic Financial Mgt Riverbridge Partners Equity Earnest Partners WHV Eaton Vance Mgmt International EQ Comp Dodge & Cox Western Asset Management Co. Security Lending Income Account In House Account Fixed Income Comp Multi Employer Property Trust Security Capital Molpus Woodlands Group Hancock Real Estate Comp Total Fund 105,151,712 37,700,264 34,869,917 34,770,272 47,059,557 52,223,564 13,670,681 14,139,571 27,082,563 366,668,101 40,137,283 32,866,335 37,906,611 110,910,230 115,326,733 91,525,877 219,557 7,024,666 214,096,833 25,274,164 45,395,430 6,211,789 3,154,006 80,035,388 771,710,553 -854 0 -584 -436 -797 -6,000,698 -316 -133 -273 -6,004,091 -734 -3,295 0 -4,029 -1,247 -2,165 -170,301 -2,433,474 -2,607,187 0 -279 0 0 -279 -8,615,585 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,232,373 1,212,533 1,474,362 637,747 1,633,309 -14,917 587,164 710,866 1,325,102 8,798,541 -1,458,076 -1,255,844 -2,453,628 -5,167,547 -2,182,893 -2,244,357 145 0 -4,427,105 667,933 -263,084 0 0 404,849 -391,263 106,383,231 38,912,797 36,343,695 35,407,584 48,692,070 46,207,948 14,257,529 14,850,304 28,407,393 369,462,551 38,678,474 31,607,197 35,452,983 105,738,653 113,142,593 89,279,355 49,401 4,591,192 207,062,541 25,942,096 45,132,067 6,211,789 3,154,006 80,439,959 762,703,704 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending June 30, 2013 Net of Fee Return Name Value $(000) Periods Ending 6/30/13 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date Total Fund Policy Index Domestic Equity Comp S&P 500 Large Cap Equity Comp R1000 Eagle Capital Management Russell 1000 Value ING Investment Mgmt R1000G Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Mid Cap Equity Comp R Mid Cap Artisan Partners R Mid Cap G Wedge Capital Mgmt R Mid Cap V Small Cap Equity Comp R2000 Atlanta Capital Mgmt Russell 2000 Riverbridge Partners R2000G Systematic Financial Mgt R2000V International EQ Comp MSCI EAFE Earnest Partners MSCI EAFE Eaton Vance Mgmt MSCI Emg Mkts WHV MSCI EAFE Fixed Income Comp BC Agg 762,704 369,463 217,047 36,344 106,383 35,408 38,913 94,900 48,692 46,208 57,515 14,258 28,407 14,850 105,739 38,678 35,453 31,607 207,063 -0.07 -0.32 2.39 2.92 2.14 2.65 4.23 3.20 1.17 2.06 1.83 3.20 3.22 3.20 1.61 2.21 3.47 2.87 -0.05 1.66 4.78 3.09 4.30 3.09 4.89 3.73 5.03 2.47 -4.66 -0.73 -3.63 -0.73 -6.47 -7.95 -3.82 -0.73 -2.13 -2.32 12.75 11.29 22.72 20.60 21.09 21.23 17.34 17.05 26.22 25.32 25.01 25.39 21.51 22.89 28.48 27.64 25.10 24.20 24.66 25.51 23.25 23.66 29.32 24.75 10.95 19.14 16.75 19.14 5.10 3.23 11.14 19.14 1.03 -0.69 12.51 12.27 19.50 18.45 17.71 18.64 19.21 18.68 18.38 18.51 21.70 19.52 22.74 19.53 20.71 19.52 22.61 18.67 22.59 17.56 20.75 17.33 7.85 10.55 11.05 10.55 4.54 3.72 10.90 10.55 4.23 3.51 7.51 6.23 8.72 7.01 6.56 7.12 7.80 7.47 6.73 6.67 10.84 8.27 12.02 7.61 11.47 8.87 11.35 8.77 14.87 8.72 9.09 8.59 0.38 -0.15 3.57 -0.15 0.49 -0.11 -1.98 -0.15 6.29 5.19 6.58 6.01 6.86 5.66 5.60 5.84 7.67 7.00 8.97 6.91 10.95 7.10 7.52 5.82 11.57 4.73 6.30 4.64 2.69 1.85 6.24 5.60 7.54 8.13 8.85 7.30 7.59 7.67 8.93 7.40 10.50 10.65 12.51 9.94 8.09 8.16 4.99 4.52 5.91 6.37 5.84 4.24 4.40 4.61 5.67 3.09 8.41 8.16 5.54 5.52 9.21 9.40 11.01 10.07 10.07 10.07 9.34 8.83 11.26 9.40 6.96 8.83 2.01 1.93 12.50 11.62 9.28 6.79 7.12 4.59 9.53 8.53 12.30 8.58 20.85 16.71 8.80 8.51 5.16 4.95 1.91 -1.56 -0.91 -1.76 -0.76 -1.56 6.72 6.99 12/31/87 12/31/87 12/31/87 12/31/87 3/31/88 3/31/88 1/31/13 1/31/13 12/31/87 12/31/87 1/31/13 1/31/13 6/30/07 6/30/07 3/31/88 3/31/88 7/31/01 7/31/01 2/28/07 2/28/07 8/31/03 8/31/03 8/31/03 8/31/03 9/30/10 9/30/10 8/31/03 8/31/03 5/31/01 5/31/01 4/30/08 4/30/08 4/30/08 4/30/08 4/30/08 4/30/08 12/31/87 12/31/87 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending June 30, 2013 Net of Fee Return Name Value $(000) Periods Ending 6/30/13 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date Dodge & Cox BC Agg In House Account 3-month T-Bill Security Lending Income Account 3-month T-Bill Western Asset Management Co. BC Agg Real Estate Comp Policy Index Hancock NCREIF Timberland Index Molpus Woodlands Group NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI 113,143 4,591 49 89,279 80,440 3,154 6,212 25,942 45,132 -1.89 -2.32 0.00 0.02 0.05 0.02 -2.45 -2.32 0.51 0.33 0.00 0.93 0.00 0.93 2.64 3.86 -0.58 -1.41 2.31 -0.69 -0.00 0.08 3.11 0.08 -0.44 -0.69 6.25 9.69 -1.70 9.35 1.59 9.35 5.69 12.17 7.84 8.38 4.71 3.51 -0.00 0.09 6.05 0.09 3.68 3.51 15.39 17.49 17.13 18.30 6.70 5.19 -0.00 0.23 9.76 0.23 5.71 5.19 5.69 6.59 6.63 7.03 6.47 5.60 -0.00 1.35 8.25 1.35 5.92 5.60 -0.00 1.63 6.46 1.63 -0.00 2.38 5.39 4.62 0.72 3.69 6.46 1.63 5.08 4.77 3.06 4.09 -1.58 9.22 -0.58 5.16 9.92 14.20 3.95 4.44 2/29/04 2/29/04 12/31/87 12/31/87 6/30/03 6/30/03 9/30/04 9/30/04 4/30/08 4/30/08 5/31/12 5/31/12 6/30/11 6/30/11 9/30/10 9/30/10 4/30/08 4/30/08 22 City of Clearwater Employees Pension Fund Executive Summary Table June 30, 2013 Net of Fee Return Name Value $(000) Calendar Years YTD 2012 2011 2010 2009 2008 Total Fund Policy Index Domestic Equity Comp S&P 500 Large Cap Equity Comp R1000 Eagle Capital Management Russell 1000 Value ING Investment Mgmt R1000G Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Mid Cap Equity Comp R Mid Cap Artisan Partners R Mid Cap G Wedge Capital Mgmt R Mid Cap V Small Cap Equity Comp R2000 Atlanta Capital Mgmt Russell 2000 Riverbridge Partners R2000G Systematic Financial Mgt R2000V International EQ Comp MSCI EAFE Earnest Partners MSCI EAFE Eaton Vance Mgmt MSCI Emg Mkts WHV MSCI EAFE Fixed Income Comp BC Agg 762,704 369,463 217,047 36,344 106,383 35,408 38,913 94,900 48,692 46,208 57,515 14,258 28,407 14,850 105,739 38,678 35,453 31,607 207,063 5.92 5.22 14.09 13.84 13.03 13.90 10.36 11.80 16.22 15.91 14.65 15.44 12.81 14.72 16.43 16.10 17.26 15.86 16.68 15.07 17.73 17.42 16.93 14.38 -2.81 4.47 -1.40 4.47 -6.45 -9.40 -0.21 4.47 -1.90 -2.44 13.89 13.17 18.37 15.98 17.02 16.42 18.95 15.26 18.09 17.50 22.00 17.26 20.82 15.80 23.16 18.48 17.61 16.34 12.53 18.05 17.83 14.59 23.50 18.05 17.61 17.90 17.18 17.90 18.55 18.62 16.97 17.90 6.53 4.22 -0.36 1.81 -0.21 2.12 -0.90 1.51 3.04 2.63 -0.77 0.39 -0.10 -1.56 0.07 -1.66 -0.33 -1.38 2.07 -4.17 10.20 -5.50 4.27 -2.92 -9.91 -5.50 -15.04 -11.73 -6.88 -11.73 -19.27 -18.17 -13.64 -11.73 5.94 7.84 17.73 13.96 22.53 15.05 16.87 16.10 17.10 16.72 15.75 15.51 28.03 25.49 33.15 26.39 23.30 24.76 29.27 26.85 25.98 24.51 35.50 24.51 18.37 8.21 16.61 8.21 23.33 19.19 17.58 8.21 7.37 6.54 30.28 26.00 32.14 26.45 24.59 28.42 24.43 37.21 20.35 19.69 45.33 40.47 51.38 46.30 38.51 34.20 33.51 27.19 26.83 20.57 35.72 20.57 57.93 32.46 55.54 32.46 67.01 79.02 55.98 32.46 12.37 5.93 -27.10 -27.73 -37.76 -36.99 -35.23 -37.60 -33.18 -38.43 -36.86 -36.85 -41.79 -41.46 -42.87 -44.32 -34.89 -38.45 -38.63 -33.80 -19.52 -28.92 -40.71 -28.92 -47.94 -43.06 2.54 5.24 23 City of Clearwater Employees Pension Fund Executive Summary Table June 30, 2013 Net of Fee Return Name Value $(000) Calendar Years YTD 2012 2011 2010 2009 2008 Dodge & Cox BC Agg In House Account 3-month T-Bill Security Lending Income Account 3-month T-Bill Western Asset Management Co. BC Agg Real Estate Comp Policy Index Hancock NCREIF Timberland Index Molpus Woodlands Group NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI 113,143 4,591 49 89,279 80,440 3,154 6,212 25,942 45,132 -1.27 -2.44 0.00 0.03 0.39 0.03 -2.68 -2.44 4.86 6.19 -0.61 2.47 0.12 2.47 4.70 6.64 6.05 5.89 7.85 4.22 -0.00 0.07 6.93 0.07 5.07 4.22 11.28 15.41 0.77 7.75 4.70 10.94 16.22 17.55 5.10 7.84 0.00 0.08 2.85 0.08 7.23 7.84 8.85 11.62 12.99 15.99 6.86 8.56 7.53 6.54 0.00 0.13 21.70 0.13 7.09 6.54 30.51 24.96 31.62 29.12 14.53 5.93 0.00 0.16 17.48 0.16 9.24 5.93 24.68 29.20 24.68 29.20 1.37 5.24 0.00 1.80 2.43 1.80 3.92 5.24 24 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 6/13 High 1st Qt Median 3rd Qt Low T Total Fund Net Ret Rank 1 Policy Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 1.60 0.81 0.24 -0.40 -1.71 -0.07 65 -0.32 74 16.29 13.88 12.40 11.31 5.65 12.75 43 11.29 76 8.65 7.35 6.78 6.06 4.77 6.86 45 7.42 23 13.74 12.17 11.41 10.44 8.05 12.51 17 12.27 21 14.31 12.49 11.57 10.84 8.56 14.16 5 13.46 8 7.27 5.96 5.29 4.44 3.08 7.51 3 6.23 20 5.97 4.37 3.56 3.07 1.73 5.23 8 4.15 32 6.95 5.85 5.34 4.81 3.89 6.58 8 6.01 22 7.15 6.31 5.78 5.33 4.53 6.94 10 6.60 15 7.54 6.71 6.22 5.70 4.91 7.03 15 7.21 10 8.39 7.53 6.97 6.45 5.56 7.54 24 8.13 10 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% T1 T 1 T1 T1 T1 T 1 T 1 T1 T1 T1 T1 25 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Total Fund Public Sponsors Years Ending December High 1st Qt Median 3rd Qt Low T Total Fund Net Ret Rank 1 Policy Index Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 8.06 6.73 5.70 4.48 -0.24 5.92 42 5.22 59 14.91 13.81 12.41 11.35 6.10 13.89 22 13.17 32 5.13 1.90 0.96 -0.41 -3.16 -0.36 74 1.81 28 16.71 14.05 12.68 11.19 5.93 17.73 3 13.96 28 28.49 22.06 19.19 15.40 4.28 30.28 2 26.00 8 -4.20 -20.21 -24.45 -27.29 -30.39 -27.10 74 -27.73 79 11.17 9.01 7.77 6.50 4.61 7.20 61 6.69 70 16.46 14.48 12.51 10.61 7.20 11.76 59 16.59 4 10.75 8.46 6.62 5.36 4.01 6.71 48 8.25 27 14.38 12.07 10.21 8.56 5.76 9.90 56 13.48 7 27.82 23.15 20.14 17.35 11.40 19.63 54 25.03 11 -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% T1 T1 T1 T 1 T 1 T1 T1 T 1 T1 T 1 T 1 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2013 -1.00.01.02.03.04.05.06.07.08.09.010.011.012.013.014.0 Qtr YTD 1 Year 3 Year 5 Year Incept 12/31/87 Total Fund Policy Index Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Total Fund Policy Index Rank ING Investment Mgmt R1000G Rank NTGI-QM R1000V R1000V Rank Eagle Capital Management Russell 1000 Value Rank Manning and Napier Russell 1000 Value Rank Artisan Partners R Mid Cap G Rank Wedge Capital Mgmt R Mid Cap V Rank -0.07 -0.32 65 1.17 2.06 74 3.22 3.20 56 4.23 3.20 36 1.83 3.20 72 3.47 2.87 22 -0.05 1.66 81 5.92 5.22 42 10.36 11.80 70 16.22 15.91 41 12.81 14.72 69 16.43 16.10 25 12.75 11.29 43 17.34 17.05 56 26.22 25.32 33 21.51 22.89 75 28.48 27.64 28 12.51 12.27 17 19.21 18.68 26 18.38 18.51 55 22.74 19.53 15 20.71 19.52 21 7.52 6.23 3 7.80 7.47 36 6.73 6.67 74 12.02 7.61 19 11.47 8.87 32 9.22 9.40 11.26 9.40 2.01 1.93 77 9.34 8.83 6.96 8.83 9.28 6.79 7.12 4.59 12/31/87 12/31/87 6/30/07 1/31/13 1/31/13 7/31/01 2/28/07 $762,703,704 $106,383,231 $38,912,797 $36,343,695 $35,407,584 $48,692,070 $46,207,948 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2013 Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Atlanta Capital Mgmt Russell 2000 Rank Systematic Financial Mgt R2000V Rank Riverbridge Partners R2000G Rank Earnest Partners MSCI EAFE Rank WHV MSCI EAFE Rank Eaton Vance Mgmt MSCI Emg Mkts Rank Dodge & Cox BC Agg Rank Western Asset Management Co. BC Agg Rank Security Lending Income Account 3-month T-Bill In House Account 3-month T-Bill 4.30 3.09 31 5.03 2.47 23 4.89 3.73 37 -3.63 -0.73 75 -3.82 -0.73 76 -6.47 -7.95 37 -1.89 -2.32 43 -2.45 -2.32 65 0.05 0.02 0.00 0.02 16.68 15.07 41 16.93 14.38 37 17.73 17.42 44 -1.40 4.47 77 -0.21 4.47 71 -6.45 -9.40 44 -1.27 -2.44 43 -2.68 -2.44 75 0.39 0.03 0.00 0.03 24.66 25.51 64 29.32 24.75 25 23.25 23.66 66 16.75 19.14 47 11.14 19.14 76 5.10 3.23 46 2.31 -0.69 31 -0.44 -0.69 76 3.11 0.08 -0.00 0.08 22.59 17.56 3 20.75 17.33 13 11.05 10.55 42 10.90 10.55 46 4.54 3.72 65 4.71 3.51 45 3.68 3.51 66 6.05 0.09 -0.00 0.09 14.87 8.72 6 9.09 8.59 83 3.57 -0.15 26 -1.98 -0.15 89 0.61 -0.11 63 6.70 5.19 39 5.71 5.19 56 10.33 0.23 -0.00 0.23 12.30 8.58 8.80 8.51 20.85 16.71 1.91 -1.56 -0.76 -1.56 -0.79 -1.76 5.39 4.62 5.08 4.77 6.73 1.63 0.72 3.69 8/31/03 8/31/03 9/30/10 4/30/08 4/30/08 4/30/08 2/29/04 9/30/04 6/30/03 12/31/87 $14,257,529 $14,850,304 $28,407,393 $38,678,474 $31,607,197 $35,452,983 $113,142,593 $89,279,355 $49,401 $4,591,192 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2013 Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Multi Employer Property Trust NCREIF ODCE Rank Security Capital Wilshire RESI Rank Molpus Woodlands Group NCREIF Timberland Index Rank Hancock NCREIF Timberland Index Rank 2.64 3.86 39 -0.58 -1.41 71 0.00 0.93 67 0.00 0.93 67 4.70 6.64 54 6.05 5.89 37 0.12 2.47 88 -0.61 2.47 90 5.69 12.17 80 7.84 8.38 67 1.59 9.35 91 -1.70 9.35 96 17.13 18.30 23 6.63 7.03 12 9.92 14.20 3.95 4.44 -0.58 5.16 -1.58 9.22 9/30/10 4/30/08 6/30/11 5/31/12 $25,942,096 $45,132,067 $6,211,789 $3,154,006 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 6/30/13 Microsoft Corp Google Inc Oracle Systems Corp Coca Cola Co Apple Inc Home Depot Inc Intl Business McHn Visa Inc Berkshire Hathaway I Wal Mart Stores Inc GICS Sector % Port Information Technology Information Technology Information Technology Consumer Staples Information Technology Consumer Discretionary Information Technology Information Technology Financials Consumer Staples 2.13 1.89 1.73 1.47 1.37 1.13 1.11 1.00 0.85 0.84 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.46 3.30 14.40 16.16 10.19 13.74 11.87 22.34 0.15 1.39 -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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity Comp S&P 500 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity Comp S&P 500 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.39 2.92 366,668 -6,004 8,799 369,463 14.09 13.84 329,339 -6,164 46,288 369,463 22.72 20.60 310,927 -11,195 69,731 369,463 19.50 18.45 231,668 -20,844 158,638 369,463 8.72 7.01 266,989 -20,844 123,318 369,463 8.85 7.30 204,733 -20,844 185,573 369,463 11.01 10.07 32,236 -20,844 358,071 369,463 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 31 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 6/30/13 Cash & Equiv $8,469 2.29% Domestic Equity $360,994 97.71% Periods from 12/87 to 6/13 Alpha Beta R-Squared 0.14 1.09 0.94 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 E 1 T Annualized Standard Deviation% E Domestic Equity Comp 1 S&P 500 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.01 10.07 3.82 17.88 15.91 1.25 0.40 0.39 0.00 0.23 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 32 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low E Domestic Equity Comp Net Ret Rank 1 S&P 500 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 6.06 3.61 2.61 1.01 -1.94 2.39 54 2.92 38 32.35 25.58 21.41 17.21 2.74 22.72 42 20.60 56 15.41 12.89 11.25 8.72 0.05 11.98 42 12.77 28 23.14 19.55 18.45 16.44 7.06 19.50 26 18.45 50 23.82 20.30 17.97 16.50 9.08 19.52 31 17.43 62 12.93 9.58 7.64 6.69 1.66 8.72 36 7.01 68 8.46 5.90 4.33 3.19 0.18 5.03 39 3.36 70 10.31 7.81 6.44 5.49 3.30 6.86 42 5.66 70 10.63 8.51 7.04 6.05 4.36 7.54 41 6.03 76 10.91 8.78 7.33 6.29 4.84 7.58 46 6.06 82 12.77 10.83 8.81 7.64 6.53 8.85 48 7.30 84 -5% 0% 5% 10% 15% 20% 25% 30% 35% E1 E 1 E1 E1 E 1 E 1 E 1 E1 E 1 E 1 E 1 33 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low E Domestic Equity Comp Net Ret Rank 1 S&P 500 Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 20.16 16.00 13.84 11.05 0.03 14.09 45 13.84 50 22.81 17.93 15.83 11.91 1.87 18.37 21 15.98 47 8.08 2.15 -0.17 -4.23 -12.26 -0.21 50 2.12 26 33.09 25.10 16.93 13.65 4.87 22.53 32 15.05 65 54.50 36.93 28.85 24.27 9.47 32.14 39 26.45 64 -16.98 -33.54 -37.02 -41.08 -49.18 -37.76 57 -36.99 49 22.30 10.26 5.43 0.38 -7.56 7.18 36 5.52 47 23.20 17.55 14.71 10.21 1.87 13.01 62 15.81 38 15.94 10.55 7.04 4.66 -0.10 8.12 42 4.89 71 25.46 18.28 13.09 10.07 3.44 13.18 49 10.87 68 58.30 39.42 31.53 27.66 17.72 33.74 42 28.69 66 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% E1 E1 E1 E 1 E 1 E1 E1 E1 E1 E1 E 1 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.01 -2.97 0.75 1.14 11.42 22.72 22.72 9.27 1.00 0.46 0.97 2.44 22.62 1.79 1.01 1 3 -0.38 10.61 20.60 20.60 9.42 2.18 2 10 1.09 1.12 0.67 -16.27 14.43 -0.21 36.09 17.67 1.11 -0.21 0.99 1.10 17.42 2.67 0.45 3 9 -13.86 12.58 1.15 30.69 15.75 1.16 6 14 1.10 1.01 0.65 -23.59 18.14 -25.56 55.86 22.95 1.06 0.35 0.99 0.37 7.95 2.68 0.72 7 13 -21.93 15.93 -26.20 49.75 21.52 0.31 32 70 1.08 1.05 0.55 -23.59 22.08 -37.76 55.86 17.88 1.09 0.14 0.94 0.40 6.59 4.70 0.23 29 73 -21.93 21.32 -38.07 49.75 15.91 0.39 35 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios An n u a l i z e d R a t e o f R e t u r n 11.0 12.4 13.8 15.2 16.6 18.0 19.4 20.8 22.2 23.6 25.0 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.5 24.3 26.1 27.9 E S Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp S Standard & Poors 500 Median 19.502617.6750 18.455015.7522 18.4517.94 An n u a l i z e d R a t e o f R e t u r n 17.0 18.4 19.8 21.2 22.6 24.0 25.4 26.8 28.2 29.6 31.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 E S Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp S Standard & Poors 500 Median 8.723622.9545 7.016821.5225 7.6423.53 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 6/30/13 Microsoft Corp Google Inc Oracle Systems Corp Coca Cola Co Apple Inc Home Depot Inc Intl Business McHn Visa Inc Berkshire Hathaway I Wal Mart Stores Inc GICS Sector % Port Information Technology Information Technology Information Technology Consumer Staples Information Technology Consumer Discretionary Information Technology Information Technology Financials Consumer Staples 3.95 3.50 3.21 2.72 2.53 2.09 2.06 1.86 1.57 1.55 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.32 3.77 10.85 15.76 16.58 13.27 8.29 23.85 0.28 0.02 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Large Cap Equity Comp R1000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Large Cap Equity Comp R1000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.14 2.65 212,492 -2 4,557 217,047 13.03 13.90 192,294 -160 24,913 217,047 21.09 21.23 182,327 -3,187 37,907 217,047 17.71 18.64 98,994 35,178 82,876 217,047 6.56 7.12 117,541 35,178 64,328 217,047 7.59 7.67 132,120 35,178 49,750 217,047 10.07 10.07 18,032 35,178 163,837 217,047 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 37 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 6/30/13 Cash & Equiv $4,384 2.02% Domestic Equity $212,664 97.98% Periods from 3/88 to 6/13 Alpha Beta R-Squared 0.04 0.98 0.96 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 L1 T Annualized Standard Deviation% L Large Cap Equity Comp 1 R1000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 10.07 10.07 3.80 16.39 16.37 1.25 0.38 0.38 0.00 -0.01 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 38 City of Clearwater Employees Pension Fund Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low L Large Cap Equity Comp Net Ret Rank 1 R1000 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 5.19 3.15 2.88 2.51 0.25 2.14 83 2.65 70 27.27 22.25 20.72 19.96 16.63 21.09 46 21.23 41 14.83 13.17 12.61 10.90 7.00 11.21 73 12.49 55 20.68 18.77 18.48 17.44 14.56 17.71 71 18.64 32 20.51 18.04 17.49 16.93 14.77 17.41 63 17.77 36 9.67 7.79 7.14 6.74 4.22 6.56 78 7.12 52 6.08 4.24 3.50 3.20 1.94 3.73 39 3.59 47 8.09 6.44 5.78 5.51 4.12 5.60 71 5.84 46 8.51 6.85 6.22 5.96 4.70 6.12 58 6.24 48 8.11 6.97 6.46 6.07 5.17 6.36 52 6.43 50 9.92 8.39 7.72 7.32 6.52 7.59 55 7.67 51 -5% 0% 5% 10% 15% 20% 25% 30% L1 L1 L 1 L1 L1 L1 L1 L1 L1 L1 L1 39 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low L Large Cap Equity Comp Net Ret Rank 1 R1000 Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 17.77 14.40 13.84 13.06 10.24 13.03 75 13.90 43 22.13 16.53 15.98 13.80 9.31 17.02 19 16.42 31 6.26 2.57 2.00 0.77 -5.46 -0.90 83 1.51 61 25.54 16.74 15.17 14.31 12.13 16.87 23 16.10 32 48.71 32.08 27.23 26.43 20.95 24.59 87 28.42 43 -27.27 -34.79 -36.90 -37.60 -43.42 -35.23 27 -37.60 75 12.68 6.42 5.55 4.74 0.21 7.76 16 5.77 38 22.23 17.52 15.82 15.50 11.82 11.52 95 15.46 77 12.00 8.98 6.19 4.92 2.60 8.63 28 6.27 45 20.23 14.71 11.31 10.82 9.44 11.24 51 11.39 48 40.82 32.25 28.77 28.54 23.97 31.37 27 29.90 36 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% L1 L1 L1 L1 L1 L1 L1 L 1 L1 L1 L1 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.99 0.25 0.02 10.65 21.09 21.09 9.61 1.01 -0.07 0.99 2.18 20.81 1.15 -0.10 0 4 0.12 10.96 21.23 21.23 9.42 2.24 3 9 0.99 1.08 0.33 -15.13 14.01 -0.90 31.89 16.80 1.02 -0.29 0.99 1.05 17.22 1.50 -0.50 2 10 -14.68 12.90 0.91 31.95 16.35 1.13 7 13 0.98 1.00 0.50 -20.96 16.91 -27.72 49.31 21.77 0.98 -0.11 0.99 0.29 6.39 1.97 -0.32 6 14 -22.48 16.49 -26.69 51.57 22.10 0.31 32 69 0.99 0.98 0.50 -20.96 20.12 -37.57 49.31 16.39 0.98 0.04 0.96 0.38 6.39 3.10 -0.01 28 73 -22.48 21.88 -38.26 51.57 16.37 0.38 41 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios An n u a l i z e d R a t e o f R e t u r n 12.0 12.9 13.8 14.7 15.6 16.5 17.4 18.3 19.2 20.1 21.0 13.0 14.1 15.2 16.3 17.4 18.5 19.6 20.7 21.8 22.9 24.0 L 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp 1 R1000 Median 17.717116.8072 18.643216.3558 18.4816.29 An n u a l i z e d R a t e o f R e t u r n 16.0 17.2 18.4 19.6 20.8 22.0 23.2 24.4 25.6 26.8 28.0 3.0 3.9 4.8 5.7 6.6 7.5 8.4 9.3 10.2 11.0 11.9 L 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp 1 R1000 Median 6.567821.7755 7.125222.1064 7.1421.65 42 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 6/30/13 Google Inc Intl Business McHn Apple Inc Microsoft Corp Visa Inc Oracle Systems Corp Home Depot Inc Comcast Corp New Monsanto Co New Gilead Sciences Inc GICS Sector % Port Information Technology Information Technology Information Technology Information Technology Information Technology Information Technology Consumer Discretionary Consumer Discretionary Materials Health Care 4.76 3.44 3.44 3.28 3.11 2.93 2.80 2.51 2.43 2.42 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 4.71 3.15 13.53 19.51 13.58 12.07 5.31 28.14 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 ING Investment Mgmt R1000G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 ING Investment Mgmt R1000G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 1.17 2.06 105,152 -1 1,232 106,383 10.36 11.80 96,396 -2 9,989 106,383 17.34 17.05 98,112 -8,003 16,274 106,383 19.21 18.68 49,346 10,381 46,656 106,383 7.80 7.47 57,419 10,381 38,583 106,383 8.93 7.40 43,738 10,381 52,264 106,383 11.26 9.40 17,469 10,381 78,533 106,383 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 43 City of Clearwater Employees Pension Fund ING Investment Mgmt as of 6/30/13 Cash & Equiv $2,697 2.54% Domestic Equity $103,686 97.46% Periods from 12/87 to 6/13 Alpha Beta R-Squared 0.60 0.84 0.93 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 i 1 T Annualized Standard Deviation% i ING Investment Mgmt 1 R1000G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.26 9.40 3.82 16.40 18.65 1.25 0.45 0.30 0.00 0.22 Asset Allocation ($000) Risk/Return Analysis 44 City of Clearwater Employees Pension Fund Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 4.76 2.67 1.93 1.14 -1.68 1.17 74 2.06 44 27.30 20.70 17.97 16.22 11.36 17.34 56 17.05 60 15.74 12.46 10.66 8.97 4.69 12.02 28 11.27 41 23.63 19.28 18.18 16.79 14.42 19.21 26 18.68 38 23.33 18.26 17.02 15.95 14.04 18.13 28 17.39 42 12.19 8.85 7.28 5.45 3.27 7.80 36 7.47 44 9.91 6.39 5.35 4.23 3.11 6.24 27 5.11 57 10.27 7.95 7.20 6.25 4.85 7.67 35 7.00 54 10.11 8.51 7.34 6.54 5.44 7.88 36 6.89 65 9.27 8.13 7.13 6.46 5.23 7.93 32 6.30 78 10.93 9.01 8.33 7.58 6.47 8.93 26 7.40 82 -5% 0% 5% 10% 15% 20% 25% 30% i1 i1 i1 i1 i1 i1 i1 i1 i1 i 1 i 1 45 City of Clearwater Employees Pension Fund Large Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 16.12 12.82 11.42 9.86 6.15 10.36 70 11.80 44 23.92 18.01 15.41 13.92 11.07 18.95 17 15.26 52 10.07 2.92 0.47 -3.37 -7.36 3.04 24 2.63 27 26.63 19.99 17.20 14.52 10.68 17.10 55 16.72 60 65.77 41.08 35.27 29.76 24.19 24.43 94 37.21 42 -28.66 -35.73 -38.77 -42.26 -48.87 -33.18 17 -38.43 48 25.50 19.60 12.84 8.72 4.35 17.10 34 11.82 58 22.62 13.28 9.76 5.65 -5.08 7.14 66 9.09 54 16.36 12.02 8.86 5.72 2.59 12.02 25 5.27 79 20.01 14.70 10.78 7.53 4.67 10.27 55 6.30 81 50.05 35.87 31.11 27.77 20.65 30.00 59 29.75 60 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% i1 i1 i1 i1 i 1 i 1 i 1 i1 i 1 i1 i1 46 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low i ING Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 19.21 30 18.68 41 18.71 14.38 12.72 11.02 4.40 14.11 27 13.06 42 17.20 12.88 10.98 9.21 3.16 12.80 25 11.35 42 18.90 14.41 13.03 10.89 3.97 16.01 12 14.74 21 23.51 18.69 16.42 14.20 6.74 18.39 27 17.50 35 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% i 1 i 1 i 1 i 1 i 1 ING Investment Mgmt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 3.4 5.5 -4.6 -4.8 0.6 -0.7 0.7 0.5 -0.1 -0.8 0.3 0.6 0.3 -0.8 2.0 -0.4 1.7 -0.1 -0.4 -0.9 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R1000G 47 City of Clearwater Employees Pension Fund Risk Measure Summary ING Investment Mgmt Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.02 1.08 0.25 -1.43 9.08 17.34 17.34 10.21 1.04 -0.10 0.96 1.69 16.49 2.33 0.12 1 3 -1.33 9.54 17.05 17.05 9.47 1.79 3 9 1.03 1.01 0.42 -12.86 17.02 3.04 35.01 16.70 1.01 0.06 0.99 1.14 18.83 2.06 0.24 3 9 -13.14 14.69 2.63 35.01 16.34 1.14 7 13 0.97 0.95 0.50 -18.51 17.02 -25.23 43.38 20.36 0.92 0.19 0.96 0.37 8.20 4.40 -0.03 7 13 -22.79 16.32 -24.49 49.75 21.78 0.33 30 72 0.95 0.79 0.53 -18.51 23.26 -33.74 44.38 16.40 0.84 0.60 0.93 0.45 8.81 5.31 0.22 33 69 -22.79 26.75 -45.64 49.75 18.65 0.30 48 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios An n u a l i z e d R a t e o f R e t u r n 8.0 9.8 11.6 13.4 15.2 17.0 18.8 20.6 22.4 24.2 26.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 i1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i ING Investment Mgmt 1 R1000G Median 19.212616.7044 18.683816.3438 18.1817.08 An n u a l i z e d R a t e o f R e t u r n 16.0 17.3 18.6 19.9 21.2 22.5 23.8 25.1 26.4 27.7 29.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 i 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i ING Investment Mgmt 1 R1000G Median 7.803620.3623 7.474421.7844 7.2822.31 49 City of Clearwater Employees Pension Fund Equity Summary Statistics ING Investment Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R1000G 62 103,685,864 87,766,148 28,015,143 1.39 20.79 21.15 1.00 3.36 44.48 15.41 611 84,163,060 7,162,722 1.73 21.73 20.78 0.96 3.95 47.67 13.29 Ten Largest Holdings Google Inc Intl Business McHn Apple Inc Microsoft Corp Visa Inc Oracle Systems Corp Home Depot Inc Comcast Corp New Monsanto Co New Gilead Sciences Inc Market Value % of Portfolio Quarterly Ret 4,935,354 3,568,024 3,560,759 3,398,788 3,221,883 3,034,184 2,902,801 2,596,560 2,514,460 2,506,217 4.76 3.44 3.44 3.28 3.11 2.93 2.80 2.51 2.43 2.42 10.87 -9.99 -9.92 21.52 7.80 -5.01 11.59 0.16 -6.13 4.66 Ten Best Performers Actavis Inc Prudential Finl Inc Best Buy Inc Ulta Salon Cosmetcs Microsoft Corp Whole Foods Mkt Inc Gap Inc Starbucks Corp Macys Inc. Occidental Pete Corp Quarterly Ret 37.03 24.55 24.15 23.40 21.52 18.96 18.36 15.36 15.32 14.64 Ten Worst Performers Allergan Inc F5 Networks Inc Cognizant Technology Hca Holdings Inc Intl Business McHn Apple Inc Intuit Mondelez Intl Inc Monsanto Co New Philip Morris Intl I Quarterly Ret -24.50 -22.77 -18.27 -11.25 -9.99 -9.92 -6.79 -6.38 -6.13 -5.65 50 City of Clearwater Employees Pension Fund Equity Contribution to Return ING Investment Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R1000G 62 103,685,864 87,766,148 28,015,143 1.39 20.79 21.15 1.00 3.36 44.48 15.41 611 84,163,060 7,162,722 1.73 21.73 20.78 0.96 3.95 47.67 13.29 Ten Best Contributors Microsoft Corp Google Inc Starbucks Corp Home Depot Inc Actavis Inc Gap Inc Prudential Finl Inc Best Buy Inc Whole Foods Mkt Inc Ulta Salon Cosmetcs Market Value % of Portfolio Quarterly Ret 3,398,788 4,935,354 2,282,327 2,902,801 874,326 1,674,208 1,236,398 1,121,897 1,364,735 1,105,766 3.28 4.76 2.20 2.80 0.84 1.62 1.19 1.08 1.32 1.07 21.52 10.87 15.36 11.59 37.03 18.36 24.55 24.15 18.96 23.40 Ten Worst Contributors Intl Business McHn Apple Inc Allergan Inc F5 Networks Inc Monsanto Co New Oracle Systems Corp Cognizant Technology Intuit Hca Holdings Inc Philip Morris Intl I Market Value % of Portfolio Quarterly Ret 3,568,024 3,560,759 1,269,497 785,696 2,514,460 3,034,184 758,207 2,013,990 988,765 1,605,588 3.44 3.44 1.23 0.76 2.43 2.93 0.73 1.94 0.95 1.55 -9.99 -9.92 -24.50 -22.77 -6.13 -5.01 -18.27 -6.79 -11.25 -5.65 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 5.18 2.78 12.79 17.63 13.18 14.86 5.18 28.40 0.00 0.00 100.00 4.21 3.89 12.94 16.86 12.91 12.86 4.87 28.95 2.30 0.21 100.00 3.02 -4.92 1.72 8.36 0.86 3.46 0.83 -2.81 1.58 -1.59 0.84 2.60 7.21 1.15 3.08 1.47 -0.49 3.64 -7.19 2.06 0.24 -0.16 -0.11 0.20 -0.04 0.06 -0.03 -0.66 0.00 0.00 -0.50 -0.04 0.01 -0.00 0.04 -0.00 0.02 -0.00 0.01 -0.04 0.02 0.03 0.20 -0.15 -0.11 0.24 -0.04 0.08 -0.03 -0.64 -0.04 0.02 -0.47 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 -0.40% [ Actual Return 1.19% ] - [ Buy Hold Return 1.58% ] 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 6/13 % Allocation Energy 5.18 4.21 Materials 2.78 3.89 Industrials 12.79 12.94 Con. Discretionary 17.63 16.86 Consumer Staples 13.18 12.91 Health Care 14.86 12.86 Financials 5.18 4.87 Infomation Tech. 28.40 28.95 Telecom. Services 0.00 2.30 Utilities 0.00 0.21 ING Investment Mgmt R1000G % Return 3.02 -1.59 -4.92 0.84 1.72 2.60 8.36 7.21 0.86 1.15 3.46 3.08 0.83 1.47 -2.81 -0.49 3.64 -7.19 % Variance 0.20 -0.15 -0.11 0.24 -0.04 0.08 -0.03 -0.64 -0.04 0.02 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 6/30/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 NTGI-QM R1000V R1000V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 NTGI-QM R1000V R1000V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.22 3.20 37,700 0 1,213 38,913 16.22 15.91 95,899 -66,500 9,514 38,913 26.22 25.32 57,648 -35,311 16,575 38,913 18.38 18.51 35,168 -25,811 29,556 38,913 6.73 6.67 42,124 -25,811 22,600 38,913 2.01 1.93 26,197 -25,811 38,527 38,913 Portfolio Performance (%) 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 6/30/13 Cash & Equiv $0 0.00% Domestic Equity $38,913 100.00% Periods from 6/07 to 6/13 Alpha Beta R-Squared 0.02 1.00 1.00 An n u a l i z e d R e t u r n % 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 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 n1 T Annualized Standard Deviation% n NTGI-QM R1000V 1 R1000V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 2.01 1.93 0.83 21.77 21.85 0.74 0.05 0.05 0.00 0.08 Asset Allocation ($000) Risk/Return Analysis 55 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years 6.23 4.74 3.73 1.45 -0.48 3.22 56 3.20 59 36.38 28.90 24.25 16.96 9.66 26.22 33 25.32 43 16.24 14.01 13.06 10.58 6.61 13.36 44 13.61 37 22.98 19.61 18.57 16.98 11.05 18.38 55 18.51 52 28.28 19.00 17.88 16.70 13.48 18.15 44 18.11 45 10.14 8.24 7.36 6.72 5.10 6.73 74 6.67 77 5.51 3.72 2.76 2.05 1.01 2.01 77 1.93 79 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% n 1 n 1 n 1 n 1 n 1 n 1 n 1 56 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 26.14 17.59 15.86 12.11 6.20 16.22 41 15.91 47 20.13 17.06 13.27 8.57 4.71 18.09 13 17.50 19 10.44 6.11 0.66 -2.34 -7.29 -0.77 65 0.39 55 20.41 16.73 14.45 11.34 9.48 15.75 40 15.51 43 41.26 29.13 24.15 20.59 14.13 20.35 77 19.69 82 -24.88 -32.86 -35.75 -38.13 -41.75 -36.86 64 -36.85 63 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% n 1 n 1 n 1 n 1 n 1 n 1 57 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 18.38 53 18.51 47 18.71 14.38 12.72 11.02 4.40 12.63 54 12.74 49 17.20 12.88 10.98 9.21 3.16 10.70 58 10.86 54 18.90 14.41 13.03 10.89 3.97 11.76 66 11.83 65 23.51 18.69 16.42 14.20 6.74 15.57 62 15.80 59 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% n 1 n 1 n 1 n 1 n 1 NTGI-QM R1000V Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -1.4% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% -0.2 0.1 0.2 0.1 0.0 0.3 0.1 0.0 0.1 0.0 0.0 0.0 0.1 -1.3 0.0 0.0 0.4 0.0 0.3 0.0 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R1000V 58 City of Clearwater Employees Pension Fund Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.04 1.00 1.53 12.60 26.22 26.22 9.81 1.03 0.01 1.00 2.66 25.31 0.46 1.69 0 4 1.53 12.31 25.32 25.32 9.51 2.65 3 9 0.99 1.00 0.92 -16.15 12.60 -1.78 29.89 16.48 0.99 0.02 1.00 1.11 18.50 0.93 -0.15 3 9 -16.21 13.11 -1.90 30.90 16.67 1.10 7 13 1.00 1.00 0.90 -22.13 18.29 -28.93 54.33 23.00 1.00 0.02 1.00 0.28 6.47 0.73 0.04 7 13 -22.17 18.24 -29.03 53.57 23.08 0.28 11 13 1.00 1.00 0.88 -22.13 18.29 -42.31 54.33 21.77 1.00 0.02 1.00 0.05 1.18 0.66 0.08 11 13 -22.17 18.24 -42.42 53.57 21.85 0.05 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios An n u a l i z e d R a t e o f R e t u r n 11.0 12.4 13.8 15.2 16.6 18.0 19.4 20.8 22.2 23.6 25.0 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.5 24.3 26.1 27.9 n1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V 1 R1000V Median 18.385316.4836 18.514716.6738 18.4517.94 An n u a l i z e d R a t e o f R e t u r n 17.0 18.4 19.8 21.2 22.6 24.0 25.4 26.8 28.2 29.6 31.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 n1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V 1 R1000V Median 6.737423.0045 6.677523.0846 7.6423.53 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 6/30/13 Berkshire Hathaway I Oracle Systems Corp Microsoft Corp Aon Plc Coca Cola Co Ecolab Inc Liberty Global Plc Wal Mart Stores Inc News Corp Ltd Unitedhealth Group I GICS Sector % Port Financials Information Technology Information Technology Financials Consumer Staples Materials Consumer Discretionary Consumer Staples Consumer Discretionary Health Care 7.64 7.13 5.89 5.49 4.47 4.33 4.14 4.00 3.83 3.77 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.86 7.73 1.20 13.60 19.85 6.20 24.29 20.28 0.00 0.00 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 Eagle Capital Management Russell 1000 Value Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD Incept 1/31/13 Eagle Capital Management Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.23 3.20 34,870 -1 1,474 36,344 9.34 8.83 33,239 -1 3,105 36,344 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 6/30/13 Cash & Equiv $718 1.98% Domestic Equity $35,626 98.02% Periods from 12/12 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 E 1 T Annualized Standard Deviation% E Eagle Capital Management 1 Russell 1000 Value T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.34 8.83 0.04 5.10 6.15 0.02 1.83 1.43 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 62 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low E Eagle Capital Management Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr 6.23 4.74 3.73 1.45 -0.48 4.23 36 3.20 59 -1% 0% 1% 2% 3% 4% 5% 6% 7% E 1 63 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low E Eagle Capital Management Net Ret Rank 1 Russell 1000 Value Net Ret Rank 6/30/13 YTD 26.14 17.59 15.86 12.11 6.20 9.34 83 15.91 47 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% E 1 64 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 1000 Value 28 35,625,692 105,066,945 40,972,091 1.33 20.08 19.82 0.81 2.22 47.53 7.67 649 103,695,303 5,809,402 2.44 16.60 16.55 1.09 1.69 52.33 3.22 Ten Largest Holdings Berkshire Hathaway I Oracle Systems Corp Microsoft Corp Aon Plc Coca Cola Co Ecolab Inc Liberty Global Plc Wal Mart Stores Inc News Corp Ltd Unitedhealth Group I Market Value % of Portfolio Quarterly Ret 2,719,656 2,537,472 2,095,971 1,956,240 1,592,367 1,541,939 1,473,213 1,422,759 1,362,680 1,342,340 7.64 7.13 5.89 5.49 4.47 4.33 4.14 4.00 3.83 3.77 7.41 -5.01 21.52 4.94 -0.13 6.54 -1.08 0.14 6.82 14.96 Ten Best Performers Microsoft Corp Unitedhealth Group I Dish Network Corp Morgan Stanley Google Inc Thermo Fisher Scient Constellation Brands Apache Corp Fidelity Natl Inform Berkshire Hathaway I Quarterly Ret 21.52 14.96 12.19 11.41 10.87 10.84 9.40 8.95 8.67 7.41 Ten Worst Performers Berkley W R Corp Nestle S A Altera Corp Mondelez Intl Inc Oracle Systems Corp Liberty Global Plc Coca Cola Co Wal Mart Stores Inc Comcast Corp New Loews Corp Quarterly Ret -7.69 -6.88 -6.71 -6.38 -5.01 -1.08 -0.13 0.14 0.62 0.89 65 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 1000 Value 28 35,625,692 105,066,945 40,972,091 1.33 20.08 19.82 0.81 2.22 47.53 7.67 649 103,695,303 5,809,402 2.44 16.60 16.55 1.09 1.69 52.33 3.22 Ten Best Contributors Microsoft Corp Berkshire Hathaway I Unitedhealth Group I Morgan Stanley Google Inc Apache Corp Ecolab Inc Dish Network Corp Aon Plc Thermo Fisher Scient Market Value % of Portfolio Quarterly Ret 2,095,971 2,719,656 1,342,340 1,228,829 1,144,481 1,156,854 1,541,939 795,124 1,956,240 863,226 5.89 7.64 3.77 3.45 3.21 3.25 4.33 2.23 5.49 2.42 21.52 7.41 14.96 11.41 10.87 8.95 6.54 12.19 4.94 10.84 Ten Worst Contributors Oracle Systems Corp Mondelez Intl Inc Nestle S A Berkley W R Corp Altera Corp Liberty Global Plc Coca Cola Co Wal Mart Stores Inc Comcast Corp New Loews Corp Market Value % of Portfolio Quarterly Ret 2,537,472 1,089,846 947,232 825,372 616,913 1,473,213 1,592,367 1,422,759 1,209,935 1,221,000 7.13 3.06 2.66 2.32 1.73 4.14 4.47 4.00 3.40 3.43 -5.01 -6.38 -6.88 -7.69 -6.71 -1.08 -0.13 0.14 0.62 0.89 66 City of Clearwater Employees Pension Fund Manning and Napier as of 6/30/13 Johnson & Johnson Exxon Mobil Corp Microsoft Corp Chevron Corp Pfizer Inc Wal Mart Stores Inc Coca Cola Co Procter & Gamble Co Philip Morris Intl I Royal Dutch Shell Pl GICS Sector % Port Health Care Energy Information Technology Energy Health Care Consumer Staples Consumer Staples Consumer Staples Consumer Staples Energy 4.10 4.04 3.97 3.83 3.76 3.69 3.30 3.18 2.81 2.80 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 15.67 1.53 12.76 6.71 22.22 24.22 0.70 14.65 1.42 0.12 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 1.83 3.20 34,770 0 638 35,408 6.96 8.83 33,104 -1 2,304 35,408 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 67 City of Clearwater Employees Pension Fund Manning and Napier as of 6/30/13 Cash & Equiv $968 2.73% Domestic Equity $34,439 97.27% Periods from 12/12 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 M 1 T Annualized Standard Deviation% M Manning and Napier 1 Russell 1000 Value T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 6.96 8.83 0.04 7.40 6.15 0.02 0.94 1.43 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 68 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low M Manning and Napier Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr 6.23 4.74 3.73 1.45 -0.48 1.83 72 3.20 59 -1% 0% 1% 2% 3% 4% 5% 6% 7% M 1 69 City of Clearwater Employees Pension Fund Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Manning and Napier Net Ret Rank 1 Russell 1000 Value Net Ret Rank 6/30/13 YTD 26.14 17.59 15.86 12.11 6.20 6.96 93 15.91 47 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% M 1 70 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 1000 Value 93 34,439,400 139,369,321 39,206,789 3.16 15.75 17.06 0.76 2.74 40.72 7.23 649 103,695,303 5,809,402 2.44 16.60 16.55 1.09 1.69 52.33 3.22 Ten Largest Holdings Johnson & Johnson Exxon Mobil Corp Microsoft Corp Chevron Corp Pfizer Inc Wal Mart Stores Inc Coca Cola Co Procter & Gamble Co Philip Morris Intl I Royal Dutch Shell Pl Market Value % of Portfolio Quarterly Ret 1,411,023 1,387,686 1,364,557 1,315,941 1,292,858 1,267,224 1,134,271 1,094,259 966,419 961,083 4.10 4.04 3.97 3.83 3.76 3.69 3.30 3.18 2.81 2.80 6.11 0.96 21.52 0.41 -2.13 0.14 -0.13 0.69 -5.65 -0.98 Ten Best Performers Magna Intl Inc Microsoft Corp Boeing Co Northrop Corp Cisco Sys Inc Occidental Pete Corp Illinois Tool Wks In Cardinal Health Inc Lockheed Martin Corp Raytheon Co Quarterly Ret 21.92 21.52 19.94 18.93 17.20 14.64 14.14 14.13 13.58 13.54 Ten Worst Performers Sabesp Cia Saneame Newmont Mng Corp Hld Teck Resources Ltd Eli Lilly & Co Statoil Asa Canon Inc Apple Inc Diageo P L C Ericsson L M Tel Co Walgreen Co Quarterly Ret -33.19 -27.77 -22.70 -12.75 -12.70 -10.41 -9.92 -8.65 -8.24 -6.78 71 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 1000 Value 93 34,439,400 139,369,321 39,206,789 3.16 15.75 17.06 0.76 2.74 40.72 7.23 649 103,695,303 5,809,402 2.44 16.60 16.55 1.09 1.69 52.33 3.22 Ten Best Contributors Microsoft Corp Intel Corp Johnson & Johnson Home Depot Inc Cisco Sys Inc Boeing Co Glaxosmithkline Occidental Pete Corp Merck & Co Inc New Bristol Myers Squibb Market Value % of Portfolio Quarterly Ret 1,364,557 780,950 1,411,023 726,436 458,268 381,589 817,509 335,772 799,312 465,670 3.97 2.27 4.10 2.11 1.33 1.11 2.38 0.98 2.32 1.35 21.52 11.89 6.11 11.59 17.20 19.94 7.68 14.64 5.96 9.42 Ten Worst Contributors Apple Inc Philip Morris Intl I Statoil Asa Eli Lilly & Co Siemens A G Pfizer Inc Canon Inc Diageo P L C Astrazeneca Plc Ericsson L M Tel Co Market Value % of Portfolio Quarterly Ret 834,937 966,419 366,999 357,250 501,282 1,292,858 236,072 265,879 394,860 245,363 2.43 2.81 1.07 1.04 1.46 3.76 0.69 0.77 1.15 0.71 -9.92 -5.65 -12.70 -12.75 -6.02 -2.13 -10.41 -8.65 -5.36 -8.24 72 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 6/30/13 Regeneron Pharmaceut Lincoln Natl Corp In Brunswick Corp Allstate Corp Duke Realty Corp. Computer Sciences Co Ihs Inc Discover Finl Svcs Transdigm Group Inc Pg&E Corp GICS Sector % Port Health Care Financials Consumer Discretionary Financials Financials Information Technology Industrials Financials Industrials Utilities 2.27 2.10 2.08 2.05 2.02 1.96 1.94 1.94 1.58 1.54 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.14 2.87 18.21 17.63 1.67 14.18 16.90 16.95 0.00 4.44 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Mid Cap Equity Comp R Mid Cap Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 Mid Cap Equity Comp R Mid Cap Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 1.61 2.21 99,283 -6,001 1,618 94,900 14.65 15.44 87,995 -6,003 12,907 94,900 25.01 25.39 80,702 -6,006 20,204 94,900 21.70 19.52 63,429 -15,013 46,484 94,900 10.84 8.27 82,633 -15,013 27,280 94,900 10.50 10.65 72,616 -15,013 37,297 94,900 12.50 11.62 15,585 -15,013 94,328 94,900 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 73 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 6/30/13 Cash & Equiv $2,853 3.01% Domestic Equity $92,047 96.99% Periods from 3/88 to 6/13 Alpha Beta R-Squared 0.09 1.14 0.83 An n u a l i z e d R e t u r n % 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 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 M 1 T Annualized Standard Deviation% M Mid Cap Equity Comp 1 R Mid Cap T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.50 11.62 3.80 23.18 18.39 1.25 0.38 0.43 0.00 0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 74 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low M Mid Cap Equity Comp Net Ret Rank 1 R Mid Cap Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 7.90 3.71 2.41 1.01 -0.56 1.61 59 2.21 54 35.18 29.66 25.34 24.16 15.96 25.01 61 25.39 46 15.97 12.75 10.69 9.50 7.94 12.76 23 11.04 46 27.75 20.68 19.43 17.62 15.37 21.70 14 19.52 44 25.20 21.89 20.26 17.77 15.89 22.77 21 20.90 39 14.49 11.06 8.96 7.16 6.13 10.84 25 8.27 57 10.27 7.20 5.72 4.24 1.78 6.98 25 4.75 62 12.10 10.70 8.09 7.18 6.17 8.97 33 6.91 81 12.17 10.47 8.64 8.14 7.08 9.48 41 7.73 79 12.15 10.98 9.37 8.61 7.89 9.11 58 8.74 70 13.78 13.41 12.10 11.06 10.75 10.50 99 10.65 99 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% M1 M1 M 1 M 1 M 1 M 1 M 1 M 1 M 1 M1 M1 75 City of Clearwater Employees Pension Fund Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Mid Cap Equity Comp Net Ret Rank 1 R Mid Cap Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 22.56 17.85 15.62 14.57 10.04 14.65 66 15.44 54 23.86 19.95 17.83 14.49 11.39 22.00 15 17.26 63 6.60 1.74 -1.76 -4.27 -5.12 -0.10 32 -1.56 40 31.40 27.04 25.74 21.32 17.95 28.03 17 25.49 52 63.14 40.53 37.28 32.66 19.11 45.33 16 40.47 25 -26.24 -31.76 -36.45 -39.20 -43.90 -41.79 92 -41.46 90 16.25 9.90 6.87 3.01 -5.27 10.26 23 5.59 61 23.69 19.78 15.48 10.94 10.06 12.53 62 15.27 53 15.60 12.73 11.23 8.36 3.18 7.85 75 12.65 28 26.82 23.35 19.09 16.65 13.80 14.48 94 20.23 37 70.37 43.85 36.45 35.22 32.49 38.95 41 40.08 40 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% M1 M 1 M1 M1 M 1 M1 M 1 M1 M 1 M 1 M1 76 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.99 0.50 1.61 12.83 25.01 25.01 9.95 1.00 -0.08 1.00 2.50 24.87 0.76 -0.41 0 4 2.21 12.95 25.39 25.39 9.84 2.57 2 10 1.05 0.93 0.67 -17.17 17.31 -0.10 41.77 19.12 0.98 0.54 0.97 1.13 21.95 3.22 0.56 2 10 -18.90 13.32 -1.67 38.49 19.21 1.01 6 14 1.02 0.92 0.70 -26.78 23.05 -26.35 65.80 25.41 0.97 0.64 0.98 0.42 10.88 3.41 0.64 6 14 -27.28 20.80 -30.36 67.72 25.99 0.31 31 70 1.15 1.16 0.56 -26.78 49.24 -41.79 77.74 23.18 1.14 0.09 0.83 0.38 7.61 10.00 0.12 32 69 -27.28 20.80 -41.46 67.72 18.39 0.43 77 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios An n u a l i z e d R a t e o f R e t u r n 16.0 16.9 17.8 18.7 19.6 20.5 21.4 22.3 23.2 24.1 25.0 12.0 13.5 15.0 16.5 18.0 19.5 21.0 22.5 24.0 25.5 27.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp 1 R Mid Cap Median 21.701419.1231 19.524419.2132 19.4320.27 An n u a l i z e d R a t e o f R e t u r n 19.0 20.3 21.6 22.9 24.2 25.5 26.8 28.1 29.4 30.7 32.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp 1 R Mid Cap Median 10.842525.4155 8.275725.9976 8.9625.39 78 City of Clearwater Employees Pension Fund Artisan Partners as of 6/30/13 Regeneron Pharmaceut Ihs Inc Discover Finl Svcs Cerner Corp Borg-Warner Automoti Cigna Corp Verisk Analytics Inc Trimble Navigation L Concur Technologies Applied Materials In GICS Sector % Port Health Care Industrials Financials Health Care Consumer Discretionary Health Care Industrials Information Technology Information Technology Information Technology 4.44 3.79 3.78 2.90 2.82 2.71 2.67 2.51 2.42 2.23 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.35 0.00 16.95 20.72 0.54 23.90 5.13 26.41 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan Partners R Mid Cap G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan Partners R Mid Cap G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.47 2.87 47,060 -1 1,633 48,692 12.81 14.72 43,165 -2 5,529 48,692 21.51 22.89 40,076 -3 8,620 48,692 22.74 19.53 30,161 -5,008 23,540 48,692 12.02 7.61 23,473 -5,009 30,228 48,692 12.51 9.94 26,494 -5,009 27,207 48,692 9.28 6.79 29,914 -5,009 23,787 48,692 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 79 City of Clearwater Employees Pension Fund Artisan Partners as of 6/30/13 Cash & Equiv $1,587 3.26% Domestic Equity $47,105 96.74% Periods from 7/01 to 6/13 Alpha Beta R-Squared 0.60 0.93 0.95 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 r 1 T Annualized Standard Deviation% r Artisan Partners 1 R Mid Cap G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.28 6.79 1.77 19.57 19.62 0.52 0.38 0.26 0.00 0.31 Asset Allocation ($000) Risk/Return Analysis 80 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 4.43 3.27 2.34 1.46 0.05 3.47 22 2.87 41 28.76 26.10 23.47 21.51 14.43 21.51 75 22.89 54 15.96 12.46 9.58 7.53 4.02 11.03 35 9.18 56 23.84 21.49 19.43 18.28 15.36 22.74 15 19.53 45 23.88 22.61 20.55 19.20 15.68 22.33 28 19.97 58 13.65 10.30 8.25 7.07 4.07 12.02 19 7.61 58 10.35 8.33 5.54 4.66 1.68 8.83 18 5.13 66 11.45 10.36 7.72 6.83 5.14 10.95 19 7.10 62 12.90 11.41 9.18 8.10 6.33 11.25 30 7.83 85 12.78 11.31 10.51 8.71 8.25 10.88 43 8.16 95 13.78 12.88 11.68 10.24 9.98 12.51 41 9.94 99 -5% 0% 5% 10% 15% 20% 25% 30% r1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 81 City of Clearwater Employees Pension Fund Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 18.75 15.90 13.70 12.48 9.14 12.81 69 14.72 37 22.48 20.02 17.00 14.84 4.01 20.82 13 15.80 61 7.39 0.54 -2.08 -5.90 -11.47 0.07 31 -1.66 45 35.50 30.01 26.81 25.13 17.96 33.15 14 26.39 59 57.46 50.16 40.15 34.18 24.89 51.38 19 46.30 29 -32.14 -39.59 -42.95 -46.19 -52.96 -42.87 47 -44.32 58 24.65 22.31 17.83 9.21 4.82 22.31 25 11.41 67 21.58 14.95 13.32 10.93 7.24 10.94 72 10.64 77 17.11 13.14 12.36 10.12 6.96 10.19 71 12.10 53 21.82 19.30 15.05 12.51 9.09 16.07 45 15.48 45 50.51 45.68 37.59 33.30 21.93 33.84 66 42.72 29 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% r1 r 1 r1 r 1 r 1 r1 r 1 r1 r1 r1 r 1 82 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 22.74 5 19.53 25 18.71 14.38 12.72 11.02 4.40 18.04 6 14.24 26 17.20 12.88 10.98 9.21 3.16 17.20 5 12.91 24 18.90 14.41 13.03 10.89 3.97 18.65 5 14.73 21 23.51 18.69 16.42 14.20 6.74 22.61 6 19.01 22 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% r 1 r 1 r 1 r 1 r 1 Artisan Partners Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 7.7 -0.2 5.4 -0.1 -0.6 -1.1 -0.9 2.5 3.6 0.1 -0.2 1.2 5.7 -4.6 5.7 -1.8 0.5 0.0 -2.2 0.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap G 83 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.94 0.75 1.72 9.02 21.51 21.51 6.34 0.78 0.83 0.95 3.38 27.36 2.94 -0.45 0 4 1.69 11.52 22.89 22.89 8.77 2.60 2 10 1.06 0.88 0.67 -14.74 21.06 0.07 49.98 20.09 0.96 0.86 0.90 1.13 23.50 6.41 0.40 2 10 -19.33 14.65 -2.99 43.26 19.87 0.98 5 15 1.01 0.85 0.55 -27.54 21.06 -21.23 58.59 25.01 0.93 1.12 0.95 0.47 12.63 6.08 0.59 6 14 -27.36 20.67 -30.33 62.98 26.20 0.28 14 33 1.01 0.90 0.45 -27.54 26.70 -42.87 58.59 21.29 0.93 0.60 0.95 0.45 10.33 5.14 0.31 15 32 -27.36 27.06 -44.32 62.98 22.21 0.34 84 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios An n u a l i z e d R a t e o f R e t u r n 14.0 15.3 16.6 17.9 19.2 20.5 21.8 23.1 24.4 25.7 27.0 15.0 15.9 16.8 17.6 18.5 19.4 20.3 21.2 22.1 23.0 23.9 r 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank r Artisan Partners 1 R Mid Cap G Median 22.741520.0942 19.534519.8740 19.4320.52 An n u a l i z e d R a t e o f R e t u r n 19.0 20.4 21.8 23.2 24.6 26.0 27.4 28.8 30.2 31.6 33.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 r 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank r Artisan Partners 1 R Mid Cap G Median 12.021925.0143 7.615826.2057 8.2525.63 85 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R Mid Cap G 70 47,104,953 10,734,898 7,609,891 0.48 36.16 25.04 1.17 4.74 24.96 13.01 489 10,381,808 5,424,377 1.15 27.46 21.05 1.09 4.30 51.58 11.95 Ten Largest Holdings Regeneron Pharmaceut Ihs Inc Discover Finl Svcs Cerner Corp Borg-Warner Automoti Cigna Corp Verisk Analytics Inc Trimble Navigation L Concur Technologies Applied Materials In Market Value % of Portfolio Quarterly Ret 2,091,384 1,784,898 1,781,736 1,364,478 1,326,710 1,275,824 1,259,670 1,183,455 1,139,320 1,048,173 4.44 3.79 3.78 2.90 2.82 2.71 2.67 2.51 2.42 2.23 27.48 -0.32 6.71 1.41 11.39 16.23 -3.13 -13.18 18.53 11.36 Ten Best Performers Tesla Mtrs Inc Isis Pharmaceuticals Ctrip Com Intl Ltd Vertex Pharmaceutica Illumina Inc Regeneron Pharmaceut Concur Technologies Lkq Corp Chart Inds Inc Lpl Finl Hldgs Inc Quarterly Ret 183.53 58.62 52.62 45.27 38.59 27.48 18.53 18.34 17.60 17.58 Ten Worst Performers Palo Alto Networks I Salesforce Com Inc Arm Hldgs Plc Trimble Navigation L Athenahealth Inc Cepheid Inc Ansys Inc Freescale Semiconduc Ipg Photonics Corp Commvault Systems In Quarterly Ret -25.51 -14.60 -14.36 -13.18 -12.70 -10.29 -10.22 -9.00 -8.55 -7.43 86 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R Mid Cap G 70 47,104,953 10,734,898 7,609,891 0.48 36.16 25.04 1.17 4.74 24.96 13.01 489 10,381,808 5,424,377 1.15 27.46 21.05 1.09 4.30 51.58 11.95 Ten Best Contributors Regeneron Pharmaceut Isis Pharmaceuticals Tesla Mtrs Inc Illumina Inc Concur Technologies Cigna Corp Lkq Corp Borg-Warner Automoti Ctrip Com Intl Ltd Tractor Supply Co Market Value % of Portfolio Quarterly Ret 2,091,384 682,498 171,888 778,336 1,139,320 1,275,824 844,600 1,326,710 274,092 952,641 4.44 1.45 0.36 1.65 2.42 2.71 1.79 2.82 0.58 2.02 27.48 58.62 183.53 38.59 18.53 16.23 18.34 11.39 52.62 13.21 Ten Worst Contributors Trimble Navigation L Arm Hldgs Plc Athenahealth Inc Salesforce Com Inc Cepheid Inc Palo Alto Networks I Ipg Photonics Corp Ansys Inc Mettler Toledo Inter Verisk Analytics Inc Market Value % of Portfolio Quarterly Ret 1,183,455 994,950 889,560 721,602 795,102 307,768 838,074 548,250 764,560 1,259,670 2.51 2.11 1.89 1.53 1.69 0.65 1.78 1.16 1.62 2.67 -13.18 -14.36 -12.70 -14.60 -10.29 -25.51 -8.55 -10.22 -5.64 -3.13 87 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 6.47 0.00 16.45 18.18 0.90 25.18 5.45 27.37 0.00 0.00 100.00 5.72 6.15 15.55 24.78 7.99 12.72 8.31 16.39 1.68 0.72 100.00 4.80 -0.66 14.78 2.74 6.34 4.36 -3.39 3.82 0.50 0.68 -0.88 7.20 6.56 6.46 0.80 -1.58 4.21 -7.19 2.89 0.28 0.00 0.04 1.38 -0.03 -0.03 0.19 -0.50 0.00 0.00 1.33 -0.02 0.14 -0.03 -0.28 -0.26 0.44 0.06 -0.49 -0.02 0.07 -0.40 0.26 0.14 0.00 1.09 -0.29 0.42 0.25 -0.99 -0.02 0.07 0.93 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 -0.19% [ Actual Return 3.63% ] - [ Buy Hold Return 3.82% ] 88 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 6/13 % Allocation Energy 6.47 5.72 Materials 0.00 6.15 Industrials 16.45 15.55 Con. Discretionary 18.18 24.78 Consumer Staples 0.90 7.99 Health Care 25.18 12.72 Financials 5.45 8.31 Infomation Tech. 27.37 16.39 Telecom. Services 0.00 1.68 Utilities 0.00 0.72 Artisan Partners R Mid Cap G % Return 4.80 0.50 0.68 -0.66 -0.88 14.78 7.20 2.74 6.56 6.34 6.46 4.36 0.80 -3.39 -1.58 4.21 -7.19 % Variance 0.26 0.14 0.00 1.09 -0.29 0.42 0.25 -0.99 -0.02 0.07 89 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 6/30/13 Lincoln Natl Corp In Brunswick Corp Allstate Corp Duke Realty Corp. Computer Sciences Co Transdigm Group Inc Pg&E Corp Werner Enterprises I URS Corp New Wyndham Worldwide Co GICS Sector % Port Financials Consumer Discretionary Financials Financials Information Technology Industrials Utilities Industrials Industrials Consumer Discretionary 4.30 4.26 4.21 4.14 4.01 3.24 3.15 3.09 3.05 3.01 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.97 5.89 19.53 14.39 2.87 3.98 29.26 7.02 0.00 9.10 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital Mgmt R Mid Cap V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 Wedge Capital Mgmt R Mid Cap V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -0.05 1.66 52,224 -6,001 -15 46,208 16.43 16.10 44,831 -6,001 7,379 46,208 28.48 27.64 40,626 -6,002 11,584 46,208 20.71 19.52 33,268 -10,004 22,945 46,208 11.47 8.87 27,279 -10,004 28,933 46,208 7.12 4.59 30,365 -10,004 25,847 46,208 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 90 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 6/30/13 Cash & Equiv $1,266 2.74% Domestic Equity $44,942 97.26% Periods from 2/07 to 6/13 Alpha Beta R-Squared 0.62 0.99 0.97 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 w 1 T Annualized Standard Deviation% w Wedge Capital Mgmt 1 R Mid Cap V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 7.12 4.59 1.06 21.14 21.25 0.52 0.29 0.17 0.00 0.56 Asset Allocation ($000) Risk/Return Analysis 91 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years 5.60 2.99 1.32 -0.02 -2.04 -0.05 81 1.66 30 37.80 28.70 25.61 20.27 17.15 28.48 28 27.64 34 20.79 14.22 10.65 9.52 8.46 14.43 18 12.76 32 26.48 20.58 18.30 17.97 16.24 20.71 21 19.52 25 29.16 23.16 20.57 19.33 18.15 23.16 26 21.81 33 17.58 11.59 9.59 8.19 7.78 11.47 32 8.87 65 7.42 6.95 5.23 4.49 4.11 6.47 34 4.04 100 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% w 1 w 1 w 1 w 1 w 1 w 1 w 1 92 City of Clearwater Employees Pension Fund Midcap Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 26.28 16.43 13.76 13.38 5.16 16.43 25 16.10 25 23.16 22.81 15.69 14.76 4.51 23.16 6 18.48 36 9.38 6.60 -2.82 -6.45 -11.08 -0.33 42 -1.38 46 35.88 30.03 21.25 19.29 14.62 23.30 33 24.76 25 61.50 54.67 39.62 32.16 30.37 38.51 66 34.20 69 -31.72 -34.45 -35.70 -43.12 -44.52 -34.89 38 -38.45 53 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% w 1 w 1 w 1 w 1 w 1 w 1 93 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 20.71 13 19.52 25 18.71 14.38 12.72 11.02 4.40 18.65 5 14.95 19 17.20 12.88 10.98 9.21 3.16 14.81 11 13.39 20 18.90 14.41 13.03 10.89 3.97 15.89 13 13.85 31 23.51 18.69 16.42 14.20 6.74 21.43 8 19.92 15 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% w 1 w 1 w 1 w 1 w 1 Wedge Capital Mgmt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 3.6 1.1 -1.0 3.9 -1.7 2.1 -3.7 5.0 -3.1 0.9 1.7 0.6 -1.4 0.2 2.0 1.5 -0.2 0.5 2.0 -1.7 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap V 94 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.03 0.50 -0.05 16.49 28.48 28.48 14.03 1.20 -1.04 0.98 2.02 23.63 3.32 0.28 0 4 1.66 14.21 27.64 27.64 10.95 2.51 4 8 1.03 0.97 0.67 -19.63 16.49 -0.63 34.32 19.85 1.04 0.10 0.97 1.04 19.76 3.46 0.34 3 9 -18.47 14.21 -2.36 34.30 18.77 1.03 8 12 1.02 0.92 0.65 -26.40 25.65 -25.19 73.15 26.55 0.99 0.64 0.97 0.42 11.30 4.75 0.50 7 13 -27.19 23.62 -30.52 72.41 26.38 0.33 11 14 1.04 0.92 0.68 -26.40 25.65 -39.75 73.15 24.49 0.99 0.62 0.97 0.24 6.03 4.25 0.56 10 15 -27.19 23.62 -42.51 72.41 24.29 0.14 95 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Value Portfolios An n u a l i z e d R a t e o f R e t u r n 12.0 13.8 15.6 17.4 19.2 21.0 22.8 24.6 26.4 28.2 30.0 14.0 14.9 15.8 16.6 17.5 18.4 19.3 20.2 21.1 22.0 22.9 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt 1 R Mid Cap V Median 20.712119.8543 19.522518.7735 18.3020.93 An n u a l i z e d R a t e o f R e t u r n 16.0 17.8 19.6 21.4 23.2 25.0 26.8 28.6 30.4 32.2 34.0 5.0 5.9 6.8 7.7 8.6 9.5 10.4 11.2 12.1 13.0 13.9 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt 1 R Mid Cap V Median 11.473226.5582 8.876526.3881 9.5925.23 96 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R Mid Cap V 43 44,941,672 7,164,347 4,027,193 2.19 17.87 16.70 1.21 1.64 62.12 2.85 521 9,291,529 4,643,592 2.26 20.85 16.50 1.21 1.51 61.41 2.78 Ten Largest Holdings Lincoln Natl Corp In Brunswick Corp Allstate Corp Duke Realty Corp. Computer Sciences Co Transdigm Group Inc Pg&E Corp Werner Enterprises I URS Corp New Wyndham Worldwide Co Market Value % of Portfolio Quarterly Ret 1,927,804 1,912,847 1,886,304 1,854,851 1,800,742 1,454,042 1,413,057 1,387,358 1,369,380 1,350,628 4.30 4.26 4.21 4.14 4.01 3.24 3.15 3.09 3.05 3.01 12.27 -6.63 -1.43 -7.34 -10.69 2.52 3.74 0.54 0.05 -10.82 Ten Best Performers Northrop Corp Delphi Automotive Pl Life Technologies Co Seacor Hldgs Inc Lincoln Natl Corp In Comtech Telecommunic Harris Teeter Superm Nordstrom Inc M & T Bk Corp Endurance Specialty Quarterly Ret 18.93 14.59 14.51 12.72 12.27 12.08 10.08 9.08 9.04 8.30 Ten Worst Performers Qep Res Inc Hca Holdings Inc Wyndham Worldwide Co Computer Sciences Co Cbl & Assoc Pptys In Carlisle Corp Duke Realty Corp. Phh Corp Mfa Mtg Invts Inc Brunswick Corp Quarterly Ret -12.69 -11.25 -10.82 -10.69 -8.28 -7.81 -7.34 -7.19 -7.15 -6.63 97 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R Mid Cap V 43 44,941,672 7,164,347 4,027,193 2.19 17.87 16.70 1.21 1.64 62.12 2.85 521 9,291,529 4,643,592 2.26 20.85 16.50 1.21 1.51 61.41 2.78 Ten Best Contributors Lincoln Natl Corp In Delphi Automotive Pl Life Technologies Co Seacor Hldgs Inc M & T Bk Corp Northrop Corp Nordstrom Inc Harris Teeter Superm City Natl Corp Endurance Specialty Market Value % of Portfolio Quarterly Ret 1,927,804 922,558 925,125 971,685 1,005,750 455,400 941,058 823,939 983,502 946,680 4.30 2.06 2.06 2.17 2.24 1.02 2.10 1.84 2.19 2.11 12.27 14.59 14.51 12.72 9.04 18.93 9.08 10.08 8.04 8.30 Ten Worst Contributors Computer Sciences Co Wyndham Worldwide Co Duke Realty Corp. Brunswick Corp Qep Res Inc Carlisle Corp Hca Holdings Inc Cbl & Assoc Pptys In Murphy Oil Corp TCF Bkg & Svgs Fa Mi Market Value % of Portfolio Quarterly Ret 1,800,742 1,350,628 1,854,851 1,912,847 875,070 1,320,972 858,228 884,646 1,339,580 925,883 4.01 3.01 4.14 4.26 1.95 2.95 1.91 1.97 2.99 2.06 -10.69 -10.82 -7.34 -6.63 -12.69 -7.81 -11.25 -8.28 -3.99 -4.89 98 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 6.77 5.34 21.01 15.16 2.62 4.72 29.07 7.17 0.00 8.14 100.00 9.37 5.80 11.25 9.32 4.92 7.21 30.50 10.22 1.28 10.13 100.00 -2.40 -1.39 1.26 -0.63 3.30 -0.63 1.79 -4.07 -0.04 0.21 -7.52 -4.50 1.29 6.79 -0.19 6.25 2.05 5.65 19.03 -0.41 1.66 0.35 0.17 -0.01 -1.12 0.09 -0.32 -0.08 -0.70 0.00 0.03 -1.60 0.24 0.03 -0.04 0.30 0.04 -0.11 -0.01 -0.12 -0.22 0.04 0.15 0.59 0.19 -0.04 -0.83 0.13 -0.44 -0.08 -0.82 -0.22 0.07 -1.45 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 -0.28% [ Actual Return -0.06% ] - [ Buy Hold Return 0.21% ] 99 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 6/13 % Allocation Energy 6.77 9.37 Materials 5.34 5.80 Industrials 21.01 11.25 Con. Discretionary 15.16 9.32 Consumer Staples 2.62 4.92 Health Care 4.72 7.21 Financials 29.07 30.50 Infomation Tech. 7.17 10.22 Telecom. Services 0.00 1.28 Utilities 8.14 10.13 Wedge Capital Mgmt R Mid Cap V % Return -2.40 -7.52 -1.39 -4.50 1.26 1.29 -0.63 6.79 3.30 -0.19 -0.63 6.25 1.79 2.05 -4.07 5.65 19.03 -0.04 -0.41 % Variance 0.59 0.19 -0.04 -0.83 0.13 -0.44 -0.08 -0.82 -0.22 0.07 100 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 6/30/13 Ultimate Software Gr Portfolio Recovery A Lkq Corp Rollins Inc National Instrs Corp Maximus Inc Grand Canyon Ed Inc Costar Group Inc Beacon Roofing Suppl Semtech Corp GICS Sector % Port Information Technology Financials Consumer Discretionary Industrials Information Technology Information Technology Consumer Discretionary Information Technology Industrials Information Technology 2.49 1.90 1.85 1.82 1.76 1.70 1.69 1.65 1.64 1.52 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.67 2.54 19.12 15.00 4.38 14.44 14.72 26.50 0.00 0.63 -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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.78 3.09 54,893 -1 2,623 57,515 17.26 15.86 49,049 -1 8,467 57,515 25.10 24.20 47,898 -2,003 11,621 57,515 22.61 18.67 69,246 -41,009 29,278 57,515 11.35 8.77 66,817 -41,009 31,706 57,515 9.53 8.53 29,988 -41,009 68,535 57,515 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 101 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 6/30/13 Cash & Equiv $1,232 2.14% Domestic Equity $56,284 97.86% Periods from 8/03 to 6/13 Alpha Beta R-Squared 0.40 0.91 0.96 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 S 1 T Annualized Standard Deviation% S Small Cap Equity Comp 1 R2000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.53 8.53 1.74 18.92 19.80 0.56 0.41 0.34 0.00 0.16 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 102 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low S Small Cap Equity Comp Net Ret Rank 1 R2000 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 5.03 3.77 2.85 1.43 -0.65 4.78 7 3.09 42 33.87 28.33 25.64 23.16 17.24 25.10 56 24.20 65 15.94 12.52 11.01 8.91 5.80 13.95 10 10.29 65 22.65 20.37 18.87 17.45 14.55 22.61 5 18.67 55 23.73 21.52 19.98 18.34 15.65 21.56 24 19.37 64 12.78 10.73 9.26 8.16 5.63 11.35 14 8.77 66 8.35 5.65 4.90 3.80 2.11 6.01 17 4.14 67 9.82 7.78 6.94 5.78 4.49 7.52 30 5.82 74 9.92 8.53 8.07 7.09 5.80 8.74 19 6.87 79 9.88 9.12 8.51 7.74 6.76 8.79 35 7.16 91 -5% 0% 5% 10% 15% 20% 25% 30% 35% S 1 S1 S 1 S 1 S 1 S 1 S 1 S 1 S 1 S 1 103 City of Clearwater Employees Pension Fund Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low S Small Cap Equity Comp Net Ret Rank 1 R2000 Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 18.49 17.06 15.83 13.55 10.29 17.26 19 15.86 49 23.06 18.48 16.63 14.95 10.79 17.61 37 16.34 60 4.74 -0.19 -2.87 -4.41 -10.19 2.07 14 -4.17 73 34.90 29.58 26.85 24.53 20.43 29.27 27 26.85 50 48.56 35.72 28.97 25.98 21.89 33.51 34 27.19 68 -21.59 -30.21 -33.24 -36.39 -41.40 -38.63 86 -33.80 60 10.45 3.83 0.33 -2.52 -8.35 3.27 29 -1.55 66 24.68 19.19 17.34 15.26 10.88 17.40 48 18.35 32 12.11 10.21 8.27 4.82 2.60 7.21 61 4.56 81 28.24 23.66 20.46 18.24 12.47 15.69 85 18.32 70 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% S1 S1 S 1 S1 S 1 S 1 S 1 S1 S1 S1 104 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.04 0.50 2.09 11.91 25.10 25.10 8.48 0.93 0.59 0.96 2.95 26.95 2.18 0.32 0 4 1.85 12.39 24.20 24.20 9.43 2.55 3 9 1.03 0.77 0.75 -18.74 16.53 2.07 41.95 19.44 0.91 1.17 0.99 1.16 24.59 2.55 1.19 3 9 -21.86 16.25 -4.17 37.40 21.28 0.87 7 13 0.99 0.88 0.70 -25.65 20.74 -21.61 57.55 24.12 0.91 0.73 0.97 0.46 12.17 4.81 0.37 7 13 -26.12 20.68 -25.01 62.77 26.18 0.32 12 27 0.97 0.89 0.62 -25.65 20.74 -38.63 57.55 19.37 0.91 0.40 0.96 0.43 9.07 4.45 0.16 13 26 -26.12 20.68 -37.50 62.77 20.86 0.34 105 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios An n u a l i z e d R a t e o f R e t u r n 14.0 15.4 16.8 18.2 19.6 21.0 22.4 23.8 25.2 26.6 28.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 S 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp 1 R2000 Median 22.61519.4418 18.675521.2866 18.8720.83 An n u a l i z e d R a t e o f R e t u r n 20.0 21.2 22.4 23.6 24.8 26.0 27.2 28.4 29.6 30.8 32.0 5.0 5.9 6.8 7.7 8.6 9.5 10.4 11.2 12.1 13.0 13.9 S 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp 1 R2000 Median 11.351424.1220 8.776626.1856 9.2625.92 106 City of Clearwater Employees Pension Fund Riverbridge Partners as of 6/30/13 Ultimate Software Gr Portfolio Recovery A Rollins Inc Maximus Inc Grand Canyon Ed Inc Costar Group Inc Lkq Corp Semtech Corp Chemed Corp New Beacon Roofing Suppl GICS Sector % Port Information Technology Financials Industrials Information Technology Consumer Discretionary Information Technology Consumer Discretionary Information Technology Health Care Industrials 5.05 3.85 3.69 3.44 3.42 3.34 3.24 3.08 2.93 2.80 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 17.58 13.32 4.19 22.16 6.05 36.69 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Riverbridge Partners R2000G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Riverbridge Partners R2000G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.89 3.73 27,083 0 1,325 28,407 17.73 17.42 24,129 -1 4,279 28,407 23.25 23.66 23,050 -1 5,358 28,407 20.85 16.71 16,876 -3 11,534 28,407 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 107 City of Clearwater Employees Pension Fund Riverbridge Partners as of 6/30/13 Cash & Equiv $652 2.30% Domestic Equity $27,755 97.70% Periods from 9/10 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 R 1 T Annualized Standard Deviation% R Riverbridge Partners 1 R2000G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 20.85 16.71 0.11 14.59 17.99 0.03 1.42 0.92 0.00 0.38 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 108 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low R Riverbridge Partners Net Ret Rank 1 R2000G Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs 6/13 YTD Last Year Last 2 Years 8.51 5.54 4.46 2.65 0.35 4.89 37 3.73 57 24.85 19.43 17.22 14.50 12.16 17.73 44 17.42 47 25.67 20.40 18.90 15.96 10.03 19.24 41 17.95 59 24.85 19.43 17.22 14.50 12.16 17.73 44 17.42 47 32.67 27.19 24.75 21.19 17.25 23.25 66 23.66 62 15.22 12.53 10.22 7.47 4.86 14.89 11 9.68 58 -5% 0% 5% 10% 15% 20% 25% 30% 35% R 1 R 1 R 1 R 1 R 1 R 1 109 City of Clearwater Employees Pension Fund Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low R Riverbridge Partners Net Ret Rank 1 R2000G Net Ret Rank 6/30/13 YTD 2012 2011 24.85 19.43 17.22 14.50 12.16 17.73 44 17.42 47 22.59 17.92 14.68 11.95 6.59 17.83 26 14.59 52 7.70 2.62 -1.44 -4.33 -9.90 4.27 17 -2.92 65 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% R 1 R 1 R 1 110 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R2000G 46 27,755,362 2,324,890 1,856,814 0.35 38.19 28.36 0.96 3.84 15.17 5.91 1,130 1,574,943 740,821 0.65 54.72 17.79 1.28 3.51 35.23 9.31 Ten Largest Holdings Ultimate Software Gr Portfolio Recovery A Rollins Inc Maximus Inc Grand Canyon Ed Inc Costar Group Inc Lkq Corp Semtech Corp Chemed Corp New Beacon Roofing Suppl Market Value % of Portfolio Quarterly Ret 1,401,029 1,067,729 1,023,490 955,578 948,658 926,077 898,418 856,133 812,302 775,972 5.05 3.85 3.69 3.44 3.42 3.34 3.24 3.08 2.93 2.80 12.61 21.04 5.89 -6.75 26.94 17.92 18.34 -1.02 -9.20 -2.02 Ten Best Performers Proto Labs Inc Sps Comm Inc Grand Canyon Ed Inc Financial Engines In Portfolio Recovery A Dealertrack Hldgs In Concur Technologies Lkq Corp Pegasystems Inc Costar Group Inc Quarterly Ret 32.32 28.90 26.94 26.01 21.04 20.59 18.53 18.34 18.05 17.92 Ten Worst Performers Ebix Com Inc Innerworkings Inc Greenway Med Technol National Instrs Corp Athenahealth Inc Echo Global Logistic Ritchie Bros Auction Cepheid Inc Chemed Corp New Maximus Inc Quarterly Ret -42.91 -28.34 -22.39 -14.26 -12.70 -11.89 -10.90 -10.29 -9.20 -6.75 111 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 2000 Growth 46 27,755,362 2,324,890 1,856,814 0.35 38.19 28.36 0.96 3.84 15.17 5.91 1,130 1,574,943 740,821 0.65 54.72 17.79 1.28 3.51 35.23 9.31 Ten Best Contributors Grand Canyon Ed Inc Portfolio Recovery A Sps Comm Inc Proto Labs Inc Ultimate Software Gr Costar Group Inc Lkq Corp Financial Engines In Dealertrack Hldgs In Concur Technologies Market Value % of Portfolio Quarterly Ret 948,658 1,067,729 706,585 551,270 1,401,029 926,077 898,418 610,632 686,633 598,224 3.42 3.85 2.55 1.99 5.05 3.34 3.24 2.20 2.47 2.16 26.94 21.04 28.90 32.32 12.61 17.92 18.34 26.01 20.59 18.53 Ten Worst Contributors National Instrs Corp Innerworkings Inc Athenahealth Inc Greenway Med Technol Chemed Corp New Cepheid Inc Ebix Com Inc Maximus Inc Ritchie Bros Auction Echo Global Logistic Market Value % of Portfolio Quarterly Ret 747,032 331,142 649,040 344,533 812,302 708,845 157,485 955,578 455,629 334,351 2.69 1.19 2.34 1.24 2.93 2.55 0.57 3.44 1.64 1.20 -14.26 -28.34 -12.70 -22.39 -9.20 -10.29 -42.91 -6.75 -10.90 -11.89 112 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 0.00 0.00 17.88 11.47 3.96 23.18 5.21 38.31 0.00 0.00 100.00 5.64 5.10 18.19 15.48 4.56 20.56 7.98 21.39 0.79 0.31 100.00 0.01 17.25 11.99 -1.33 22.81 3.83 4.80 -2.97 -7.12 0.72 9.59 8.97 5.76 -0.32 4.65 8.76 -1.68 3.71 0.00 0.00 -0.13 0.88 0.12 -1.64 1.20 -0.31 0.00 0.00 0.12 0.38 0.55 0.01 -0.24 -0.03 0.05 0.11 0.16 -0.04 0.02 0.97 0.38 0.55 -0.12 0.64 0.09 -1.59 1.32 -0.15 -0.04 0.02 1.09 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 0.18% [ Actual Return 4.98% ] - [ Buy Hold Return 4.80% ] 113 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 6/13 % Allocation Energy 0.00 5.64 Materials 0.00 5.10 Industrials 17.88 18.19 Con. Discretionary 11.47 15.48 Consumer Staples 3.96 4.56 Health Care 23.18 20.56 Financials 5.21 7.98 Infomation Tech. 38.31 21.39 Telecom. Services 0.00 0.79 Utilities 0.00 0.31 Riverbridge Partners R2000G % Return -2.97 -7.12 0.01 0.72 17.25 9.59 11.99 8.97 -1.33 5.76 22.81 -0.32 3.83 4.65 8.76 -1.68 % Variance 0.38 0.55 -0.12 0.64 0.09 -1.59 1.32 -0.15 -0.04 0.02 114 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 6/30/13 Morningstar Inc Kirby Expl Co. Henry Jack & Assoc I Manhattan Assocs Inc Dril-Quip Inc Sally Beauty Hldgs I Blackbaud Inc Bio Rad Labs Inc Monro Muffler Brake Moog Inc ’a’ GICS Sector % Port Consumer Discretionary Industrials Information Technology Information Technology Energy Consumer Discretionary Information Technology Health Care Consumer Discretionary Industrials 3.64 3.52 3.24 2.96 2.82 2.74 2.73 2.50 2.38 2.33 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.82 4.19 27.71 19.21 3.71 6.35 17.04 18.96 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Atlanta Capital Mgmt Russell 2000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Atlanta Capital Mgmt Russell 2000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.30 3.09 13,671 0 587 14,258 16.68 15.07 12,220 -1 2,038 14,258 24.66 25.51 13,363 -2,001 2,896 14,258 22.59 17.56 18,436 -12,002 7,824 14,258 14.87 8.72 16,982 -12,002 9,278 14,258 12.30 8.58 14,990 -12,002 11,270 14,258 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 115 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 6/30/13 Cash & Equiv $394 2.76% Domestic Equity $13,863 97.24% Periods from 8/03 to 6/13 Alpha Beta R-Squared 1.29 0.73 0.92 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 t 1 T Annualized Standard Deviation% t Atlanta Capital Mgmt 1 Russell 2000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.30 8.58 1.74 16.64 19.76 0.56 0.63 0.35 0.00 0.34 Asset Allocation ($000) Risk/Return Analysis 116 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 Russell 2000 Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 8.08 4.81 2.71 1.01 -1.80 4.30 31 3.09 46 32.48 29.57 25.51 24.10 5.71 24.66 64 25.51 51 16.30 13.16 11.59 10.93 8.77 13.47 21 11.23 64 22.10 20.06 19.03 18.12 16.27 22.59 3 17.56 82 25.32 22.50 21.19 19.86 18.31 21.76 38 19.40 80 15.14 12.82 11.31 10.39 8.03 14.87 6 8.72 87 7.54 6.70 6.20 5.36 3.51 11.02 1 2.95 97 9.90 8.77 8.23 7.66 5.38 11.57 1 4.73 99 10.48 9.87 8.83 8.43 7.34 11.89 1 5.91 100 11.09 11.02 9.89 9.56 8.63 11.92 1 6.82 100 -5% 0% 5% 10% 15% 20% 25% 30% 35% t1 t1 t 1 t 1 t 1 t 1 t 1 t 1 t 1 t 1 117 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 Russell 2000 Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 20.18 18.78 16.14 14.30 4.07 16.68 41 15.07 60 21.72 17.93 15.30 10.83 -4.23 12.53 62 18.05 23 2.52 -0.44 -3.25 -5.95 -8.96 10.20 1 -5.50 71 33.23 30.88 28.02 25.13 21.15 25.98 67 24.51 82 55.19 37.53 33.62 26.61 22.56 26.83 69 20.57 96 -23.82 -29.40 -31.81 -35.88 -38.74 -19.52 1 -28.92 21 4.50 0.79 -2.90 -9.16 -12.81 6.91 4 -9.77 78 29.98 21.53 19.90 15.90 12.37 16.22 70 23.48 9 13.67 10.86 8.89 6.98 2.85 6.23 75 4.70 88 28.23 26.31 24.36 21.39 17.34 20.24 79 22.25 58 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% t1 t 1 t 1 t1 t 1 t 1 t 1 t 1 t1 t1 118 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 Russell 2000 Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 22.59 6 17.56 66 18.71 14.38 12.72 11.02 4.40 17.70 7 12.11 63 17.20 12.88 10.98 9.21 3.16 16.03 7 11.58 39 18.90 14.41 13.03 10.89 3.97 16.78 9 11.72 66 23.51 18.69 16.42 14.20 6.74 20.81 11 17.43 36 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% t 1 t 1 t 1 t 1 t 1 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% -1.2 11.0 10.9 0.0 -6.0 0.9 -2.6 3.2 1.2 -0.6 2.7 5.4 7.3 0.4 -2.6 -0.1 -1.4 -0.7 0.2 1.2 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Russell 2000 119 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.97 0.50 2.52 11.87 24.66 24.66 8.36 0.99 -0.12 0.95 2.94 24.77 2.31 -0.31 0 4 3.09 11.63 25.51 25.51 7.99 3.18 2 10 1.01 0.63 0.58 -15.76 16.42 3.29 43.07 17.55 0.84 1.69 0.95 1.28 26.83 5.15 0.72 3 9 -21.47 15.97 -6.00 32.63 20.62 0.85 5 15 0.92 0.68 0.60 -16.60 18.00 -9.01 52.53 20.50 0.76 1.74 0.96 0.71 19.22 7.68 0.51 6 14 -24.89 22.70 -25.25 65.05 26.53 0.32 11 28 0.89 0.60 0.59 -16.60 18.00 -24.55 52.53 15.92 0.73 1.29 0.92 0.69 15.19 7.32 0.34 12 27 -24.89 22.70 -38.89 65.05 21.06 0.33 120 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios An n u a l i z e d R a t e o f R e t u r n 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 t 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt 1 Russell 2000 Median 22.59317.558 17.568220.6237 19.0321.45 An n u a l i z e d R a t e o f R e t u r n 18.0 19.8 21.6 23.4 25.2 27.0 28.8 30.6 32.4 34.2 36.0 7.0 7.9 8.8 9.7 10.5 11.4 12.3 13.2 14.1 15.0 15.9 t 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt 1 Russell 2000 Median 14.87620.502 8.728726.5346 11.3127.09 121 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 2000 61 13,863,309 2,593,091 2,123,326 0.93 24.05 23.13 1.02 2.95 21.08 7.14 1,984 1,435,962 590,381 1.38 37.74 15.29 1.27 1.92 43.09 6.64 Ten Largest Holdings Morningstar Inc Kirby Expl Co. Henry Jack & Assoc I Manhattan Assocs Inc Dril-Quip Inc Sally Beauty Hldgs I Blackbaud Inc Bio Rad Labs Inc Monro Muffler Brake Moog Inc ’a’ Market Value % of Portfolio Quarterly Ret 504,192 488,057 448,206 410,491 390,956 380,042 378,789 346,025 329,623 323,093 3.64 3.52 3.24 2.96 2.82 2.74 2.73 2.50 2.38 2.33 11.16 3.57 2.42 3.86 3.58 5.85 10.37 -10.95 21.29 12.44 Ten Best Performers Artisan Partners Ass Wolverine World Wide Dorman Products Inc Monro Muffler Brake Aaon Inc Lkq Corp Liquidity Services I Umpqua Hldgs Corp Scansource Inc Moog Inc ’a’ Quarterly Ret 26.51 23.35 22.63 21.29 20.28 18.34 16.30 14.77 13.39 12.44 Ten Worst Performers Universal Health Rlt National Instrs Corp Stepan Chem Co Bio Rad Labs Inc Raven Inds Inc State Bk Finl Corp Carlisle Corp Mwi Veterinary Suppl Power Integrations I Choice Hotels Intl I Quarterly Ret -24.23 -14.26 -11.61 -10.95 -10.46 -8.01 -7.81 -6.82 -6.39 -5.76 122 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio Russell 2000 61 13,863,309 2,593,091 2,123,326 0.93 24.05 23.13 1.02 2.95 21.08 7.14 1,984 1,435,962 590,381 1.38 37.74 15.29 1.27 1.92 43.09 6.64 Ten Best Contributors Monro Muffler Brake Artisan Partners Ass Dorman Products Inc Morningstar Inc Wolverine World Wide Moog Inc ’a’ Blackbaud Inc Aaon Inc Umpqua Hldgs Corp Lkq Corp Market Value % of Portfolio Quarterly Ret 329,623 250,548 280,625 504,192 198,944 323,093 378,789 184,289 223,439 144,664 2.38 1.81 2.03 3.64 1.44 2.33 2.73 1.33 1.61 1.04 21.29 26.51 22.63 11.16 23.35 12.44 10.37 20.28 14.77 18.34 Ten Worst Contributors Bio Rad Labs Inc National Instrs Corp Universal Health Rlt Raven Inds Inc Stepan Chem Co Choice Hotels Intl I Power Integrations I Carlisle Corp State Bk Finl Corp Meridian Bioscience Market Value % of Portfolio Quarterly Ret 346,025 241,709 100,062 226,739 145,253 248,658 218,862 176,462 168,607 215,860 2.50 1.74 0.72 1.64 1.05 1.79 1.58 1.27 1.22 1.56 -10.95 -14.26 -24.23 -10.46 -11.61 -5.76 -6.39 -7.81 -8.01 -4.87 123 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 2.88 3.38 28.08 18.99 3.77 7.08 17.15 18.67 0.00 0.00 100.00 6.12 5.30 15.18 13.73 3.54 12.20 23.62 16.39 0.63 3.29 100.00 3.58 -1.55 4.48 10.20 4.51 -7.34 5.33 2.16 4.21 -3.08 -6.98 0.86 10.06 9.06 5.66 0.16 5.85 8.86 -0.10 3.01 0.19 0.18 1.02 0.03 -0.17 -0.92 0.89 -0.69 0.00 0.00 0.52 0.20 0.19 -0.28 0.37 0.01 -0.14 0.18 0.06 -0.04 0.10 0.68 0.39 0.38 0.74 0.40 -0.16 -1.06 1.07 -0.62 -0.04 0.10 1.20 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 0.24% [ Actual Return 4.46% ] - [ Buy Hold Return 4.21% ] 124 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 6/13 % Allocation Energy 2.88 6.12 Materials 3.38 5.30 Industrials 28.08 15.18 Con. Discretionary 18.99 13.73 Consumer Staples 3.77 3.54 Health Care 7.08 12.20 Financials 17.15 23.62 Infomation Tech. 18.67 16.39 Telecom. Services 0.00 0.63 Utilities 0.00 3.29 Atlanta Capital Mgmt Russell 2000 % Return 3.58 -3.08 -1.55 -6.98 4.48 0.86 10.20 10.06 4.51 9.06 -7.34 5.66 5.33 0.16 2.16 5.85 8.86 -0.10 % Variance 0.39 0.38 0.74 0.40 -0.16 -1.06 1.07 -0.62 -0.04 0.10 125 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 6/30/13 Dupont Fabros Techno Brandywine Rlty Tr Graphic Packaging Hl Bankunited Inc Cno Finl Group Inc Ryder Sys Inc Nexstar Broadcasting Northwestern Corp Rite Aid Corp Bbcn Bancorp Inc GICS Sector % Port Financials Financials Materials Financials Financials Industrials Consumer Discretionary Utilities Consumer Staples Financials 2.86 2.15 2.01 1.93 1.70 1.60 1.60 1.56 1.55 1.44 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.57 5.80 13.93 14.18 5.35 7.46 28.95 14.33 0.00 2.42 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Systematic Financial Mgt R2000V Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Systematic Financial Mgt R2000V Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 5.03 2.47 14,140 0 711 14,850 16.93 14.38 12,700 0 2,151 14,850 29.32 24.75 11,484 -1 3,367 14,850 20.75 17.33 14,081 -6,001 6,771 14,850 9.09 8.59 16,050 -6,001 4,802 14,850 8.80 8.51 15,001 -6,001 5,850 14,850 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 126 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 6/30/13 Cash & Equiv $185 1.25% Domestic Equity $14,665 98.75% Periods from 8/03 to 6/13 Alpha Beta R-Squared 0.17 1.05 0.86 An n u a l i z e d R e t u r n % 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 s1 T Annualized Standard Deviation% s Systematic Financial Mgt 1 R2000V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 8.80 8.51 1.74 21.53 19.74 0.56 0.33 0.34 0.00 0.08 Asset Allocation ($000) Risk/Return Analysis 127 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 8.08 4.81 2.71 1.01 -1.80 5.03 23 2.47 50 32.48 29.57 25.51 24.10 5.71 29.32 25 24.75 63 16.30 13.16 11.59 10.93 8.77 12.71 42 10.89 77 22.10 20.06 19.03 18.12 16.27 20.75 13 17.33 85 25.32 22.50 21.19 19.86 18.31 23.20 11 19.22 85 15.14 12.82 11.31 10.39 8.03 9.09 83 8.59 89 7.54 6.70 6.20 5.36 3.51 3.99 87 2.85 97 9.90 8.77 8.23 7.66 5.38 6.30 90 4.64 99 10.48 9.87 8.83 8.43 7.34 8.09 88 5.83 100 11.09 11.02 9.89 9.56 8.63 7.88 100 6.75 100 -5% 0% 5% 10% 15% 20% 25% 30% 35% s 1 s 1 s 1 s 1 s 1 s1 s1 s 1 s 1 s1 128 City of Clearwater Employees Pension Fund Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 20.18 18.78 16.14 14.30 4.07 16.93 37 14.38 73 21.72 17.93 15.30 10.83 -4.23 23.50 1 18.05 23 2.52 -0.44 -3.25 -5.95 -8.96 -9.91 98 -5.50 71 33.23 30.88 28.02 25.13 21.15 35.50 1 24.51 82 55.19 37.53 33.62 26.61 22.56 35.72 36 20.57 96 -23.82 -29.40 -31.81 -35.88 -38.74 -40.71 97 -28.92 21 4.50 0.79 -2.90 -9.16 -12.81 0.49 28 -9.77 78 29.98 21.53 19.90 15.90 12.37 18.61 64 23.48 9 13.67 10.86 8.89 6.98 2.85 8.27 53 4.70 88 28.23 26.31 24.36 21.39 17.34 11.42 100 22.25 58 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% s1 s 1 s 1 s 1 s 1 s 1 s 1 s 1 s1 s 1 129 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Equity Portfolios High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank 6/13 3/13 12/12 9/12 6/12 23.14 19.55 18.45 16.44 7.06 20.75 13 17.33 68 18.71 14.38 12.72 11.02 4.40 14.15 27 12.11 63 17.20 12.88 10.98 9.21 3.16 14.67 12 11.58 39 18.90 14.41 13.03 10.89 3.97 15.03 18 11.72 66 23.51 18.69 16.42 14.20 6.74 21.22 9 17.43 36 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% s 1 s 1 s 1 s 1 s 1 Systematic Financial Mgt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% -17.8 -0.3 9.1 0.4 2.2 0.6 2.6 -0.8 3.9 2.9 1.0 -2.3 -7.4 4.3 5.7 -2.4 1.4 0.0 -0.3 2.5 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000V 130 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.18 0.75 3.23 11.34 29.32 29.32 6.98 0.94 1.27 0.93 4.18 30.99 2.66 1.42 0 4 2.47 11.63 24.75 24.75 8.30 2.97 3 9 1.34 1.34 0.67 -27.29 20.97 -11.58 44.73 26.89 1.29 -0.20 0.98 0.77 15.99 6.99 0.62 3 9 -21.47 15.97 -6.00 32.63 20.64 0.83 7 13 1.07 1.04 0.65 -27.29 25.37 -32.94 74.73 30.52 1.08 0.15 0.88 0.29 8.15 10.92 0.09 6 14 -24.89 22.70 -25.25 65.05 26.53 0.31 14 25 1.03 1.00 0.56 -27.29 25.37 -40.88 74.73 23.96 1.05 0.17 0.86 0.31 7.14 9.10 0.08 12 27 -24.89 22.70 -38.89 65.05 21.06 0.33 131 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Value Portfolios An n u a l i z e d R a t e o f R e t u r n 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt 1 R2000V Median 20.751326.8998 17.338520.6437 19.0321.45 An n u a l i z e d R a t e o f R e t u r n 18.0 19.8 21.6 23.4 25.2 27.0 28.8 30.6 32.4 34.2 36.0 7.0 7.9 8.8 9.7 10.5 11.4 12.3 13.2 14.1 15.0 15.9 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt 1 R2000V Median 9.098330.5290 8.598926.5346 11.3127.09 132 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R2000V 123 14,664,950 1,526,350 1,152,501 1.17 33.59 15.53 1.43 1.72 59.86 10.31 1,356 1,295,525 511,137 2.10 28.63 14.13 1.26 1.31 50.75 3.99 Ten Largest Holdings Dupont Fabros Techno Brandywine Rlty Tr Graphic Packaging Hl Bankunited Inc Cno Finl Group Inc Ryder Sys Inc Nexstar Broadcasting Northwestern Corp Rite Aid Corp Bbcn Bancorp Inc Market Value % of Portfolio Quarterly Ret 419,003 315,016 294,894 282,209 248,508 234,042 234,036 228,428 226,512 211,167 2.86 2.15 2.01 1.93 1.70 1.60 1.60 1.56 1.55 1.44 0.32 -8.03 3.34 1.52 13.46 2.26 97.82 1.05 50.53 9.33 Ten Best Performers Yrc Worldwide Inc Nexstar Broadcasting Arkansas Best Corp Entravision Communic Sunedison Inc Renewable Energy Gro Sunpower Corp Itt Educational Serv Pacific Sunwear Cali Gray Television Inc Quarterly Ret 280.79 97.82 97.05 92.79 85.68 85.05 79.38 77.07 74.64 53.52 Ten Worst Performers Axiall Corp Vaalco Energy Inc Cott Corp Que Pioneer Energy Svcs Universal Stainless Headwaters Inc Arris Group Inc New Trinity Inds Inc Walter Invt Mgmt Cor Callon Pete Co Del Quarterly Ret -31.37 -24.64 -22.28 -19.76 -18.90 -18.90 -16.42 -14.98 -9.23 -8.92 133 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Portfolio R2000V 123 14,664,950 1,526,350 1,152,501 1.17 33.59 15.53 1.43 1.72 59.86 10.31 1,356 1,295,525 511,137 2.10 28.63 14.13 1.26 1.31 50.75 3.99 Ten Best Contributors Yrc Worldwide Inc Nexstar Broadcasting Sunedison Inc Rite Aid Corp Renewable Energy Gro Sunpower Corp Entravision Communic Hhgregg Inc Pacific Sunwear Cali Arkansas Best Corp Market Value % of Portfolio Quarterly Ret 83,375 234,036 161,153 226,512 133,051 136,103 90,559 181,467 87,144 62,539 0.57 1.60 1.10 1.55 0.91 0.93 0.62 1.24 0.59 0.43 280.79 97.82 85.68 50.53 85.05 79.38 92.79 44.52 74.64 97.05 Ten Worst Contributors Axiall Corp Headwaters Inc Cott Corp Que Brandywine Rlty Tr Pioneer Energy Svcs Walter Invt Mgmt Cor Universal Stainless Trinity Inds Inc Vaalco Energy Inc Susser Hldgs Corp Market Value % of Portfolio Quarterly Ret 110,708 148,512 117,150 315,016 92,680 166,514 79,596 99,944 59,488 165,186 0.76 1.01 0.80 2.15 0.63 1.14 0.54 0.68 0.41 1.13 -31.37 -18.90 -22.28 -8.03 -19.76 -9.23 -18.90 -14.98 -24.64 -6.32 134 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 10.30 7.43 14.63 14.27 3.65 6.03 28.61 13.90 0.00 1.18 100.00 6.56 5.50 12.35 12.09 2.58 4.34 38.30 11.70 0.49 6.09 100.00 -7.50 -3.33 -1.57 22.32 1.03 6.14 4.58 5.86 1.05 4.48 -3.17 -6.86 1.05 10.63 9.21 5.24 0.26 7.96 9.00 -0.03 2.37 -0.45 0.26 -0.38 1.67 -0.30 0.05 1.24 -0.29 0.00 0.01 1.81 -0.21 -0.18 -0.03 0.18 0.07 0.05 0.20 0.12 -0.03 0.12 0.30 -0.65 0.08 -0.41 1.85 -0.23 0.10 1.44 -0.17 -0.03 0.13 2.11 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.68% [ Actual Return 5.16% ] - [ Buy Hold Return 4.48% ] 135 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 6/13 % Allocation Energy 10.30 6.56 Materials 7.43 5.50 Industrials 14.63 12.35 Con. Discretionary 14.27 12.09 Consumer Staples 3.65 2.58 Health Care 6.03 4.34 Financials 28.61 38.30 Infomation Tech. 13.90 11.70 Telecom. Services 0.00 0.49 Utilities 1.18 6.09 Systematic Financial Mgt R2000V % Return -7.50 -3.17 -3.33 -6.86 -1.57 1.05 22.32 10.63 1.03 9.21 6.14 5.24 4.58 0.26 5.86 7.96 9.00 1.05 -0.03 % Variance -0.65 0.08 -0.41 1.85 -0.23 0.10 1.44 -0.17 -0.03 0.13 136 City of Clearwater Employees Pension Fund International EQ Comp as of 6/30/13 Core Laboratories N Canadian Pac Railway Rio Tinto Plc Bhp Billiton Ltd Novartis A G Agrium Inc Transocean Ltd Zug Arm Hldgs Plc Noble Corporation Ba Denso Corp GICS Sector % Port Energy Industrials Materials Materials Health Care Materials Energy Information Technology Energy Consumer Discretionary 4.38 3.03 2.88 2.82 2.74 2.43 2.26 2.22 2.16 2.08 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 22.11 18.02 13.38 3.80 9.02 8.82 18.13 5.88 0.83 0.00 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -4.66 -0.73 110,910 -4 -5,168 105,739 -2.81 4.47 108,811 -11 -3,061 105,739 10.95 19.14 95,335 -38 10,441 105,739 7.85 10.55 93,559 -9,567 21,747 105,739 0.38 -0.15 101,341 -9,727 14,125 105,739 8.09 8.16 33,947 -9,727 81,519 105,739 5.16 4.95 20,000 -9,727 95,466 105,739 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 137 City of Clearwater Employees Pension Fund International EQ Comp as of 6/30/13 Cash & Equiv $4,002 3.79% Intl Equity $101,736 96.21% Periods from 5/01 to 6/13 Alpha Beta R-Squared 0.06 1.03 0.95 An n u a l i z e d R e t u r n % 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 I1 T Annualized Standard Deviation% I International EQ Comp 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.16 4.95 1.80 18.74 18.22 0.52 0.18 0.17 0.00 0.06 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 138 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 3.03 0.47 -1.15 -3.63 -8.82 -4.66 79 -0.73 42 27.92 20.67 16.24 11.62 2.02 10.95 77 19.14 32 10.09 4.65 1.38 -1.30 -8.54 -2.41 82 1.58 46 17.43 12.97 10.57 8.32 2.28 7.85 79 10.55 50 17.55 13.43 11.14 9.17 6.37 9.95 65 9.49 70 8.76 3.79 1.45 -0.37 -3.40 0.38 65 -0.15 70 6.30 2.12 0.22 -1.64 -4.36 -1.05 67 -1.89 78 9.87 5.90 3.89 2.18 -0.49 2.69 68 1.85 79 11.35 8.35 6.32 4.94 2.27 5.43 66 4.71 79 13.71 9.37 7.44 5.85 3.75 6.48 62 5.71 78 16.16 11.87 9.51 8.15 6.36 8.09 76 8.16 74 -10% -5% 0% 5% 10% 15% 20% 25% 30% I 1 I 1 I 1 I 1 I1 I1 I1 I1 I1 I1 I1 139 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 12.10 6.12 2.61 -0.82 -10.10 -2.81 79 4.47 38 25.98 20.86 18.42 16.22 7.47 17.61 60 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -15.04 70 -11.73 37 25.22 17.43 12.29 8.80 2.37 18.37 21 8.21 77 77.72 43.14 35.77 26.88 12.96 57.93 12 32.46 59 -24.43 -40.30 -43.42 -47.50 -56.53 -47.94 77 -43.06 46 40.61 18.45 12.26 8.10 0.74 11.02 59 11.63 53 35.58 29.50 26.18 22.37 11.79 27.62 37 26.85 42 37.04 20.88 15.57 11.84 6.45 13.15 66 14.01 58 30.79 23.81 19.98 16.98 10.27 17.66 71 20.69 41 58.62 44.30 37.87 32.72 24.34 31.06 83 39.16 41 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% I 1 I1 I1 I 1 I 1 I1 I1 I1 I1 I1 I 1 140 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 0.82 6.39 0.25 -4.66 7.38 10.95 10.95 10.94 1.18 -2.59 0.84 0.99 9.17 4.31 -1.62 1 3 -0.73 6.98 19.14 19.14 7.16 2.66 4 8 1.01 1.23 0.42 -21.66 18.42 -15.04 31.72 20.68 1.13 -0.87 0.96 0.37 6.88 4.65 -0.45 3 9 -18.95 16.53 -13.38 30.92 17.97 0.58 8 12 1.12 1.06 0.50 -26.42 31.05 -30.26 71.81 29.07 1.08 0.29 0.94 0.00 0.12 7.21 0.16 7 13 -20.50 25.85 -30.96 55.20 26.08 -0.02 17 31 1.03 1.02 0.48 -26.42 31.05 -47.94 71.81 22.50 1.03 0.06 0.95 0.16 3.57 5.03 0.06 17 31 -20.50 25.85 -46.20 58.14 21.25 0.17 141 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios An n u a l i z e d R a t e o f R e t u r n 8.0 10.2 12.4 14.6 16.8 19.0 21.2 23.4 25.6 27.8 30.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 I 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp 1 MSCI EAFE Median 7.857920.6873 10.555017.9731 10.5719.07 An n u a l i z e d R a t e o f R e t u r n 14.0 16.6 19.2 21.8 24.4 27.0 29.6 32.2 34.8 37.4 40.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 I1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp 1 MSCI EAFE Median 0.386529.0872 -0.157026.0844 1.4526.64 142 City of Clearwater Employees Pension Fund Earnest Partners as of 6/30/13 Core Laboratories N Arm Hldgs Plc Denso Corp Icici Bk Ltd Shire Getinge Ab Roche Holdings Ag Diageo Dnb Asa Is MSCI Emerge GICS Sector % Port Energy Information Technology Consumer Discretionary Financials Health Care Health Care Health Care Consumer Staples Financials Materials 4.66 4.00 3.76 3.55 3.09 3.08 2.95 2.84 2.84 2.80 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 15.99 10.68 9.27 6.86 2.84 13.38 28.85 10.62 1.50 0.00 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Earnest Partners MSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Earnest Partners MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -3.63 -0.73 40,137 -1 -1,458 38,678 -1.40 4.47 39,235 -7 -549 38,678 16.75 19.14 33,156 -29 5,552 38,678 11.05 10.55 23,340 5,451 9,888 38,678 3.57 -0.15 26,845 5,448 6,385 38,678 1.91 -1.56 29,002 5,448 4,228 38,678 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 143 City of Clearwater Employees Pension Fund Earnest Partners as of 6/30/13 Cash & Equiv $1,512 3.91% Intl Equity $37,166 96.09% Periods from 4/08 to 6/13 Alpha Beta R-Squared 1.02 1.07 0.96 An n u a l i z e d R e t u r n % -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 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 e 1 T Annualized Standard Deviation% e Earnest Partners 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 1.91 -1.56 0.31 23.86 22.91 0.18 0.07 -0.08 0.00 0.69 Asset Allocation ($000) Risk/Return Analysis 144 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 3.03 0.47 -1.15 -3.63 -8.82 -3.63 75 -0.73 42 27.92 20.67 16.24 11.62 2.02 16.75 47 19.14 32 10.09 4.65 1.38 -1.30 -8.54 -0.22 67 1.58 46 17.43 12.97 10.57 8.32 2.28 11.05 42 10.55 50 17.55 13.43 11.14 9.17 6.37 12.57 31 9.49 70 8.76 3.79 1.45 -0.37 -3.40 3.57 26 -0.15 70 -10% -5% 0% 5% 10% 15% 20% 25% 30% e 1 e 1 e 1 e 1 e 1 e 1 145 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 12.10 6.12 2.61 -0.82 -10.10 -1.40 77 4.47 38 25.98 20.86 18.42 16.22 7.47 17.18 65 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -6.88 14 -11.73 37 25.22 17.43 12.29 8.80 2.37 16.61 28 8.21 77 77.72 43.14 35.77 26.88 12.96 55.54 13 32.46 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% e 1 e 1 e 1 e 1 e 1 146 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/13 3/13 12/12 9/12 6/12 17.43 12.97 10.57 8.32 2.28 11.05 42 10.55 50 14.00 9.07 6.40 4.67 0.54 8.12 32 5.49 61 13.07 8.14 5.68 3.95 0.42 8.36 23 4.04 73 12.96 7.76 5.12 2.84 -0.51 7.31 29 2.59 78 17.37 11.71 8.75 6.62 2.21 11.20 29 6.45 76 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% e 1 e 1 e 1 e 1 e 1 Earnest Partners Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.5 -4.6 6.5 5.2 1.3 3.4 2.0 3.1 2.4 0.0 3.9 -1.3 -1.2 4.1 -1.9 -2.4 1.7 2.1 -2.8 -2.9 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI EAFE 147 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios An n u a l i z e d R a t e o f R e t u r n 8.0 10.2 12.4 14.6 16.8 19.0 21.2 23.4 25.6 27.8 30.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 e1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank e Earnest Partners 1 MSCI EAFE Median 11.054220.4068 10.555017.9731 10.5719.07 An n u a l i z e d R a t e o f R e t u r n 14.0 16.6 19.2 21.8 24.4 27.0 29.6 32.2 34.8 37.4 40.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 e 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank e Earnest Partners 1 MSCI EAFE Median 3.572628.5869 -0.157026.0844 1.4526.64 148 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth Portfolio MSCI EAFE 49 37,166,245 34,713,026 17,278,591 2.27 17.05 16.45 1.05 1.63 93.21 6.74 3.05 908 54,566,052 7,602,347 3.27 16.88 17.74 1.00 1.55 86.86 4.26 3.89 Ten Largest Holdings Core Laboratories N Arm Hldgs Plc Denso Corp Icici Bk Ltd Shire Getinge Ab Roche Holdings Ag Diageo Dnb Asa Is MSCI Emerge Market Value % of Portfolio Quarterly Ret 1,683,426 1,445,210 1,357,210 1,281,375 1,116,299 1,111,178 1,064,038 1,026,702 1,024,106 1,010,394 4.66 4.00 3.76 3.55 3.09 3.08 2.95 2.84 2.84 2.80 10.21 -14.36 10.80 -9.41 3.92 -1.34 6.42 -9.50 0.30 -8.83 Ten Best Performers Amadeus It Hldgs Sa Hitachi Denso Corp Core Laboratories N Nippon Steel & Sumit Roche Holdings Ag Societe Generale Basf Se Secom Co Shire Quarterly Ret 17.94 11.03 10.80 10.21 7.94 6.42 5.78 5.42 5.38 3.92 Ten Worst Performers Daphne International Subsea 7 S.A. Banco Do Brasil S A Banco Bradesco S A Rogers Communication Anhui Conch Cement Bhp Billiton Ltd Arm Hldgs Plc Rio Tinto Plc Statoil Asa Quarterly Ret -31.08 -25.47 -25.24 -22.95 -22.49 -17.37 -15.74 -14.36 -12.74 -12.70 149 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 6/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Australia Austria Belgium Bermuda Brazil Canada Cayman Islands Channel Islands China Colombia Czech Republic Denmark Finland France Germany Greece Hong Kong India Ireland Isle of Man Israel Italy Japan Kazakhstan Luxembourg Mexico Netherlands New Zealand Norway Panama 9.21 0.27 1.21 0.00 0.00 0.00 0.00 0.19 0.00 0.00 0.00 1.15 0.77 9.24 8.40 0.06 3.14 0.00 0.28 0.06 0.54 1.95 21.28 0.00 0.00 0.00 2.42 0.13 0.88 0.00 9.21 0.27 1.21 0.00 0.00 0.00 0.00 0.19 0.00 0.00 0.00 1.15 0.77 9.24 8.40 0.06 3.14 0.00 0.28 0.06 0.54 1.95 21.28 0.00 0.00 0.00 2.42 0.13 0.88 0.00 -2.03 -3.69 -4.88 -22.08 -4.95 0.07 2.24 2.27 -7.34 -4.89 -2.66 -11.13 -3.93 0.07 10.28 1.81 -2.74 -1.94 -13.56 -2.51 -3.72 -22.17 -3.83 1.30 3.50 3.52 -6.20 -4.82 -1.46 -13.07 -4.09 1.30 4.38 2.89 -10.37 -6.33 2.12 4.72 0.00 0.00 3.52 1.91 1.72 0.00 8.17 1.99 1.09 0.00 0.00 1.15 1.79 0.00 2.26 3.90 0.00 0.00 0.00 0.00 8.47 0.00 0.00 0.00 4.15 0.00 6.08 1.87 0.00 4.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.06 0.00 0.00 1.13 1.74 0.00 11.86 0.00 0.00 0.00 0.00 0.00 8.26 0.00 0.00 0.00 0.00 0.00 3.96 0.00 -15.74 -1.44 -24.18 -22.49 -31.14 -8.87 -10.00 2.85 4.50 4.15 -3.29 -9.41 15.13 10.21 1.87 0.73 -15.74 -0.23 -24.18 -22.49 -31.08 -8.80 -10.00 3.26 5.78 5.42 -3.21 -9.41 8.97 10.21 -5.23 0.73 0.26 -0.24 0.08 -0.06 -0.03 -0.03 0.04 -0.14 -0.03 -0.02 0.08 0.01 -0.05 -0.04 0.01 0.06 -0.07 0.01 0.01 0.03 0.03 -1.10 0.00 0.01 -0.19 -0.03 0.86 0.15 -0.04 -0.00 0.02 -0.04 -0.03 -0.28 -0.23 -0.00 0.20 -0.01 -0.00 -0.01 -0.07 0.48 -0.08 0.01 -0.07 -0.29 0.11 -0.85 -0.43 -0.53 -0.73 -0.20 0.03 0.03 0.03 0.04 -0.37 0.41 0.35 0.23 0.01 0.83 0.01 0.04 -0.91 -0.46 -0.56 0.04 -0.86 -0.23 0.04 0.04 -0.01 -0.30 -0.24 0.00 0.29 -0.43 0.00 0.01 0.02 -0.04 -0.21 0.27 0.01 -0.02 -0.02 Benchmark : MSCI EAFE Index Gross Dividend 150 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 6/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Portugal Scotland Singapore South Africa South Korea Spain Sweden Switzerland Taiwan United Kingdom United States 0.17 0.09 1.84 0.00 0.00 2.75 3.28 9.17 0.00 21.88 0.00 100.00 0.17 0.09 1.84 0.00 0.00 2.75 3.28 9.17 0.00 21.88 0.00 100.00 -1.15 -1.24 -3.52 -1.25 -1.61 -0.04 -1.08 1.67 0.06 -1.35 -5.63 -0.04 -5.22 0.05 -1.20 -0.52 0.00 0.00 2.17 0.00 2.09 2.00 3.06 8.39 2.12 17.67 7.57 100.00 0.00 0.00 2.12 0.00 0.00 1.95 2.98 2.50 0.00 8.59 49.26 100.00 -0.36 -7.23 16.51 2.41 0.09 -1.22 -8.14 -5.45 -3.22 -2.54 -7.23 17.94 -1.34 0.22 -1.22 -7.19 -5.45 -4.02 0.00 0.00 -0.02 -0.03 0.02 0.01 0.01 -0.04 0.12 -0.13 -1.44 -0.01 -0.00 0.00 -0.03 0.00 -0.15 -0.28 1.08 1.48 0.07 -0.15 0.35 0.12 0.01 -0.03 -1.25 -0.41 -3.44 -0.00 0.00 0.05 -0.19 0.35 0.13 -0.13 -0.06 -1.41 0.54 -3.40 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x [Benchmark Local Return - Benchmark Total Local Return] Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x [ (Benchmark US$ Return - Benchmark Local Return) - (Benchmark Total US$ Return - Benchmark Total Local Return) ] Security Selection [Portfolio Active Weight] x [Portfolio Local Return - Benchmark Local Return] 151 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis Earnest Partners Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 14.02 11.24 8.81 6.74 3.00 12.54 30.10 10.81 2.73 0.00 100.00 7.18 8.87 12.61 10.98 12.36 10.32 24.71 4.35 4.94 3.68 100.00 0.10 -8.12 -2.62 -2.33 -9.50 0.77 -5.95 -2.29 -15.72 -3.94 -2.99 -8.14 -1.38 5.75 -4.36 0.89 -0.82 1.75 5.38 4.12 -0.64 0.43 0.00 -0.11 -0.55 -0.15 -0.02 -1.54 -0.44 -0.58 0.00 -2.95 -0.16 -0.18 0.03 -0.27 0.35 0.03 -0.01 0.15 -0.13 -0.17 -0.36 0.27 -0.17 -0.08 -0.82 0.19 0.02 -1.55 -0.28 -0.71 -0.17 -3.31 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 0.13% [ Actual Return -3.81% ] - [ Buy Hold Return -3.94% ] 152 City of Clearwater Employees Pension Fund WHV as of 6/30/13 Canadian Pac Railway Agrium Inc Noble Corporation Ba Nestle S A Canadian Natl Ry Co Schlumberger Ltd Potash Corp Sask Inc Rio Tinto Plc Bhp Billiton Ltd Core Laboratories N GICS Sector % Port Industrials Materials Energy Consumer Staples Industrials Energy Materials Materials Materials Energy 6.80 5.45 4.85 4.66 4.62 4.40 4.21 4.12 4.05 4.04 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 29.70 27.15 18.49 0.00 16.69 3.16 4.81 0.00 0.00 0.00 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 WHV MSCI EAFE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 WHV MSCI EAFE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -3.82 -0.73 32,866 -3 -1,256 31,607 -0.21 4.47 31,677 -4 -66 31,607 11.14 19.14 28,445 -8 3,170 31,607 10.90 10.55 23,187 -18 8,438 31,607 -1.98 -0.15 30,812 -19 814 31,607 -0.76 -1.56 29,002 -19 2,624 31,607 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 153 City of Clearwater Employees Pension Fund WHV as of 6/30/13 Cash & Equiv $2,490 7.88% Intl Equity $29,117 92.12% Periods from 4/08 to 6/13 Alpha Beta R-Squared -0.11 1.13 0.89 An n u a l i z e d R e t u r n % -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 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 w 1 T Annualized Standard Deviation% w WHV 1 MSCI EAFE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.76 -1.56 0.31 25.44 22.91 0.18 -0.04 -0.08 0.00 -0.06 Asset Allocation ($000) Risk/Return Analysis 154 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 3.03 0.47 -1.15 -3.63 -8.82 -3.82 76 -0.73 42 27.92 20.67 16.24 11.62 2.02 11.14 76 19.14 32 10.09 4.65 1.38 -1.30 -8.54 -1.16 73 1.58 46 17.43 12.97 10.57 8.32 2.28 10.90 46 10.55 50 17.55 13.43 11.14 9.17 6.37 11.10 50 9.49 70 8.76 3.79 1.45 -0.37 -3.40 -1.98 89 -0.15 70 -10% -5% 0% 5% 10% 15% 20% 25% 30% w 1 w 1 w 1 w 1 w 1 w 1 155 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 12.10 6.12 2.61 -0.82 -10.10 -0.21 71 4.47 38 25.98 20.86 18.42 16.22 7.47 16.97 67 17.90 55 -1.77 -10.11 -12.89 -15.49 -21.64 -13.64 58 -11.73 37 25.22 17.43 12.29 8.80 2.37 17.58 24 8.21 77 77.72 43.14 35.77 26.88 12.96 55.98 13 32.46 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% w 1 w 1 w 1 w 1 w 1 156 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low w WHV Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/13 3/13 12/12 9/12 6/12 17.43 12.97 10.57 8.32 2.28 10.90 46 10.55 50 14.00 9.07 6.40 4.67 0.54 6.23 51 5.49 61 13.07 8.14 5.68 3.95 0.42 5.90 47 4.04 73 12.96 7.76 5.12 2.84 -0.51 7.41 28 2.59 78 17.37 11.71 8.75 6.62 2.21 11.09 30 6.45 76 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% w 1 w 1 w 1 w 1 w 1 WHV Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% -8.4 -16.1 12.2 -0.3 -1.2 6.5 1.8 -2.0 1.2 7.6 2.9 -4.8 -6.3 6.6 -0.1 1.7 -0.2 -2.2 -1.4 -3.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI EAFE 157 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios An n u a l i z e d R a t e o f R e t u r n 8.0 10.2 12.4 14.6 16.8 19.0 21.2 23.4 25.6 27.8 30.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 10.904622.4588 10.555017.9731 10.5719.07 An n u a l i z e d R a t e o f R e t u r n 14.0 16.6 19.2 21.8 24.4 27.0 29.6 32.2 34.8 37.4 40.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median -1.988931.2187 -0.157026.0844 1.4526.64 158 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 6/13 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth Portfolio MSCI EAFE 36 29,117,164 52,096,446 30,089,117 2.37 17.50 17.63 0.00 1.87 55.03 -0.11 7.48 908 54,566,052 7,602,347 3.27 16.88 17.74 1.00 1.55 86.86 4.26 3.89 Ten Largest Holdings Canadian Pac Railway Agrium Inc Noble Corporation Ba Nestle S A Canadian Natl Ry Co Schlumberger Ltd Potash Corp Sask Inc Rio Tinto Plc Bhp Billiton Ltd Core Laboratories N Market Value % of Portfolio Quarterly Ret 1,978,494 1,585,281 1,411,129 1,355,068 1,344,758 1,279,131 1,225,117 1,198,509 1,179,147 1,175,365 6.80 5.45 4.85 4.66 4.62 4.40 4.21 4.12 4.05 4.04 -6.70 -10.30 -1.15 -6.88 -2.61 -3.90 -2.17 -12.74 -15.74 10.21 Ten Best Performers Axa Sa Weatherford Internat Ubs Ag Core Laboratories N Manulife Finl Corp Eaton Corp Plc Basf Ag Brookfield Asset Mgm Ingersoll-Rand Plc Tenaris S A Quarterly Ret 19.01 12.85 11.13 10.21 9.74 8.20 4.83 2.46 1.31 0.13 Ten Worst Performers Teck Resources Ltd Vale S A Finning Tractor & Eq Bhp Billiton Ltd Rio Tinto Plc Canadian Nat Res Ltd Agrium Inc Yara Intl Asa Diageo Fibria Celulose S A Quarterly Ret -22.70 -22.19 -15.82 -15.74 -12.74 -11.66 -10.30 -8.68 -8.65 -8.12 159 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 6/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total Australia Austria Belgium Bermuda Brazil Canada Cayman Islands Channel Islands China Denmark Finland France Germany Greece Hong Kong Ireland Isle of Man Israel Italy Japan Kazakhstan Luxembourg Mexico Netherland Antilles Netherlands New Zealand Norway Portugal Scotland Singapore 9.21 0.27 1.21 0.00 0.00 0.00 0.00 0.19 0.00 1.15 0.77 9.24 8.40 0.06 3.14 0.28 0.06 0.54 1.95 21.28 0.00 0.00 0.00 0.00 2.42 0.13 0.88 0.17 0.09 1.84 9.21 0.27 1.21 0.00 0.00 0.00 0.00 0.19 0.00 1.15 0.77 9.24 8.40 0.06 3.14 0.28 0.06 0.54 1.95 21.28 0.00 0.00 0.00 0.00 2.42 0.13 0.88 0.17 0.09 1.84 -2.03 -3.69 -4.88 -22.08 -4.95 0.07 2.24 2.27 -7.34 -4.89 -2.66 -11.13 -3.93 0.07 10.28 1.81 -2.74 -1.94 -1.15 -1.24 -3.52 -13.56 -2.51 -3.72 -22.17 -3.83 1.30 3.50 3.52 -6.20 -4.82 -1.46 -13.07 -4.09 1.30 4.38 2.89 -10.37 -6.33 0.06 -1.35 -5.63 4.57 0.00 0.00 5.18 3.61 29.57 4.68 0.00 0.00 0.00 0.00 0.50 2.65 0.00 0.00 3.31 0.00 0.00 0.00 0.00 0.00 3.16 0.00 4.37 6.44 0.00 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -15.74 -4.01 -21.81 -6.05 -1.15 19.01 4.83 1.31 0.13 -3.90 3.95 -8.68 -15.74 -4.01 -21.81 -6.05 -1.15 19.01 4.83 1.31 0.13 -3.90 3.95 -8.68 0.17 0.01 0.08 -0.09 -0.06 -0.49 -0.08 0.04 0.08 0.01 -0.05 -0.03 0.01 0.21 -0.13 0.01 0.03 0.03 -1.83 -0.05 -0.07 0.01 0.01 0.03 0.00 0.00 0.10 0.86 -0.01 -0.04 -0.00 -0.04 -0.03 -0.32 -0.29 -0.00 -0.07 -0.01 -0.00 -0.01 -0.07 0.79 -0.08 0.01 0.02 -0.01 -0.00 -0.00 -0.63 -0.21 -0.79 -1.79 -0.05 0.08 0.07 0.13 0.00 -0.17 0.14 -0.01 0.40 0.01 0.04 -0.29 -0.85 -2.28 -0.13 0.04 0.04 -0.01 -0.29 -0.26 0.00 0.13 -0.01 0.01 0.02 -0.04 -1.04 -0.05 -0.24 0.06 0.01 0.04 -0.00 0.00 0.09 Benchmark : MSCI EAFE Index Gross Dividend 160 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 6/13 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total South Africa Spain Sweden Switzerland United Kingdom United States 0.00 2.75 3.28 9.17 21.88 0.00 100.00 0.00 2.75 3.28 9.17 21.88 0.00 100.00 -1.25 -1.61 -0.04 -1.08 1.67 -0.04 -5.22 0.05 -1.20 -0.52 0.00 0.00 0.00 16.80 12.02 3.00 100.00 0.00 0.00 0.00 0.00 0.00 100.00 100.00 -1.10 -8.82 8.20 -4.21 -1.10 -8.82 8.20 -4.21 0.08 0.11 -0.13 0.27 -0.05 -1.79 -0.09 0.05 -0.21 -0.45 2.19 2.18 -0.18 -0.93 0.25 -4.08 -0.01 0.15 -0.52 -1.11 2.39 -3.69 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] 161 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis WHV Quarter Ending 6/13 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 28.44 29.14 17.97 0.00 17.00 3.03 4.42 0.00 0.00 0.00 100.00 7.18 8.87 12.61 10.98 12.36 10.32 24.71 4.35 4.94 3.68 100.00 -0.20 -10.53 -1.81 -5.81 -0.74 5.54 -4.21 -2.99 -8.14 -1.38 5.75 -4.36 0.89 -0.82 1.75 5.38 4.12 -0.64 0.79 -0.70 -0.08 0.00 -0.25 -0.05 0.28 0.00 0.00 0.00 0.01 -0.50 -1.52 -0.04 -0.70 -0.17 -0.11 0.04 -0.10 -0.30 -0.17 -3.59 0.29 -2.22 -0.12 -0.70 -0.42 -0.16 0.32 -0.10 -0.30 -0.17 -3.58 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 0.04% [ Actual Return -4.18% ] - [ Buy Hold Return -4.21% ] 162 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 6/30/13 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Eaton Vance Mgmt MSCI Emg Mkts Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Eaton Vance Mgmt MSCI Emg Mkts Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -6.47 -7.95 37,907 0 -2,454 35,453 -6.45 -9.40 37,899 0 -2,446 35,453 5.10 3.23 33,734 0 1,719 35,453 4.54 3.72 24,277 7,692 3,483 35,453 0.49 -0.11 7,692 7,536 20,225 35,453 -0.91 -1.76 8,277 7,536 19,640 35,453 Portfolio Performance (%) 163 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 6/30/13 Cash & Equiv $0 0.00% Intl Equity $35,453 100.00% Periods from 4/08 to 6/13 Alpha Beta R-Squared 0.12 0.98 0.98 An n u a l i z e d R e t u r n % -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 -1.8 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 v 1 T Annualized Standard Deviation% v Eaton Vance Mgmt 1 MSCI Emg Mkts T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.91 -1.76 0.31 26.41 27.69 0.18 -0.05 -0.08 0.00 0.07 Asset Allocation ($000) Risk/Return Analysis 164 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 0.97 -5.54 -7.35 -8.61 -10.81 -6.47 37 -7.95 63 14.75 7.62 4.64 2.53 -2.02 5.10 46 3.23 67 13.51 0.34 -3.88 -7.20 -11.71 -5.42 61 -6.70 70 17.49 9.07 6.01 3.26 -1.22 4.54 65 3.72 71 20.72 13.75 10.87 7.75 5.12 9.17 67 8.34 71 12.68 5.94 2.25 -0.52 -3.47 0.49 65 -0.11 71 -15% -10% -5% 0% 5% 10% 15% 20% 25% v 1 v 1 v 1 v 1 v 1 v 1 165 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 8.66 -4.26 -7.40 -9.46 -13.23 -6.45 44 -9.40 74 26.15 22.35 19.28 16.78 7.47 18.55 56 18.62 55 -1.50 -11.22 -17.61 -21.19 -25.62 -19.27 71 -18.17 58 28.11 23.83 19.98 17.57 7.41 23.33 27 19.19 58 88.77 79.38 73.62 69.33 28.25 67.01 78 79.02 25 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% v 1 v 1 v 1 v 1 v 1 166 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of International Equity Portfolios High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Net Ret Rank 1 MSCI Emg Mkts Net Ret Rank 6/13 3/13 12/12 9/12 6/12 17.43 12.97 10.57 8.32 2.28 4.54 90 3.72 91 14.00 9.07 6.40 4.67 0.54 3.86 82 3.59 84 13.07 8.14 5.68 3.95 0.42 5.68 50 4.98 58 12.96 7.76 5.12 2.84 -0.51 5.79 42 5.96 41 17.37 11.71 8.75 6.62 2.21 10.56 35 10.10 38 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% v 1 v 1 v 1 v 1 v 1 Eaton Vance Mgmt Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 5.4 -0.6 -6.8 2.3 0.5 -2.6 2.9 0.0 0.4 0.2 -1.4 0.5 1.8 -2.2 0.0 1.3 -1.3 -0.1 1.6 1.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI Emg Mkts 167 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Emerging Markets Portfolios An n u a l i z e d R a t e o f R e t u r n 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 32.0 -8.0 -5.2 -2.3 0.4 3.2 6.0 8.8 11.6 14.4 17.2 20.0 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 10.901722.4567 10.551717.9722 6.0121.99 An n u a l i z e d R a t e o f R e t u r n 16.0 19.0 22.0 25.0 28.0 31.0 34.0 37.0 40.0 43.0 46.0 -6.0 -4.2 -2.3 -0.5 1.2 3.0 4.8 6.6 8.4 10.2 12.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median -1.988531.2155 -0.157126.0818 2.2530.98 168 City of Clearwater Employees Pension Fund Fixed Income Comp as of 6/30/13 United States Treas United States Treas United States Treas United States Treas United States Treas FNMA Pool Al2688 FNMA Cl 30 - Tba Jul FNMA Cl 30 - Tba Jul FNMA Pool Al1849 FNMA Ci 15 - Tba Jul Sector % Port Government Government Government Government Government Mortgage Mortgage Mortgage Mortgage Mortgage 2.30 2.19 1.86 1.50 1.48 1.34 1.27 1.13 1.12 0.94 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 18.37 18.13 19.33 35.30 1.70 1.73 3.65 1.47 0.33 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Fixed Income Comp BC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Fixed Income Comp BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -2.13 -2.32 214,097 -2,607 -4,427 207,063 -1.90 -2.44 210,840 134 -3,912 207,063 1.03 -0.69 205,650 -757 2,170 207,063 4.23 3.51 184,528 -1,926 24,461 207,063 6.29 5.19 191,005 -6,501 22,559 207,063 4.99 4.52 192,518 -6,501 21,046 207,063 6.72 6.99 59,224 -6,501 154,340 207,063 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 169 City of Clearwater Employees Pension Fund Fixed Income Comp as of 6/30/13 Other $23 0.01% Domestic Equity $3 0.00% Cash & Equiv $22,061 10.65% Domestic Fixed $184,975 89.33% Periods from 12/87 to 6/13 Alpha Beta R-Squared 0.24 0.60 0.58 An n u a l i z e d R e t u r n % 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 F 1 T Annualized Standard Deviation% F Fixed Income Comp 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 6.72 6.99 3.82 3.16 4.11 1.25 0.92 0.77 0.00 -0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 170 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low F Fixed Income Comp Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 1.38 -1.06 -2.08 -2.91 -6.63 -2.13 51 -2.32 59 12.42 3.52 0.92 -0.33 -4.68 1.03 48 -0.69 82 9.71 6.06 4.03 3.06 0.45 3.74 57 3.31 67 10.98 6.78 4.63 3.41 0.81 4.23 57 3.51 71 14.16 8.94 6.42 4.77 0.74 6.08 54 4.97 71 10.74 7.52 6.12 4.73 0.61 6.29 47 5.19 67 9.38 7.39 6.10 4.96 1.11 6.22 46 5.51 67 9.18 7.31 6.08 5.17 2.05 6.24 45 5.60 64 8.47 6.29 5.38 4.52 2.22 5.45 48 4.77 68 8.66 6.54 5.53 4.76 2.45 5.56 48 5.00 68 8.51 5.96 5.08 4.32 2.57 4.99 53 4.52 70 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% F1 F 1 F1 F1 F 1 F 1 F1 F1 F1 F1 F1 171 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low F Fixed Income Comp Net Ret Rank 1 BC Agg Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 4.48 0.02 -1.60 -2.65 -7.64 -1.90 55 -2.44 67 17.18 10.36 6.83 4.20 1.12 6.53 53 4.22 74 16.09 7.83 6.14 3.55 -0.28 5.94 53 7.84 24 16.77 10.20 7.27 5.69 0.51 7.37 48 6.54 62 45.09 16.76 9.88 5.85 -0.57 12.37 40 5.93 74 9.60 5.21 1.87 -6.93 -25.82 2.54 46 5.24 24 10.17 7.51 6.53 5.05 2.16 5.94 61 6.96 40 12.18 5.39 4.59 4.14 2.59 5.05 31 4.33 65 6.94 3.16 2.60 2.07 1.33 2.59 50 2.43 59 11.29 5.48 4.44 3.29 1.34 3.93 65 4.34 53 26.13 6.87 4.62 3.67 1.69 3.77 73 4.11 65 -30% -20% -10% 0% 10% 20% 30% 40% 50% F1 F1 F1 F1 F 1 F1 F1 F1 F1 F1 F1 172 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.66 0.78 1.00 -2.13 2.32 1.03 1.03 3.68 1.12 0.46 0.98 0.25 0.82 0.46 3.82 2 2 -2.32 1.59 -0.69 -0.69 3.24 -0.25 2 10 1.04 0.61 0.75 -2.13 2.67 1.03 7.10 2.67 0.69 0.43 0.76 1.54 5.98 1.73 0.39 3 9 -2.32 3.82 -0.69 7.84 3.42 0.99 4 16 1.21 1.14 0.65 -2.54 5.72 1.03 15.87 4.20 0.95 0.33 0.65 1.43 6.30 2.56 0.41 4 16 -2.32 4.57 -0.69 10.56 3.61 1.36 17 85 0.90 0.36 0.49 -2.54 5.72 -0.07 15.87 3.16 0.60 0.24 0.58 0.92 4.86 2.59 -0.12 21 81 -2.87 7.96 -3.23 18.48 4.11 0.77 173 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios An n u a l i z e d R a t e o f R e t u r n 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 -4.0 -2.2 -0.4 1.3 3.1 5.0 6.8 8.6 10.4 12.2 14.0 F 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp 1 BC Agg Median 4.23572.6725 3.51713.4244 4.633.59 An n u a l i z e d R a t e o f R e t u r n 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 F 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp 1 BC Agg Median 6.29474.2043 5.19673.6130 6.124.80 174 City of Clearwater Employees Pension Fund Dodge & Cox as of 6/30/13 United States Treas United States Treas United States Treas FNMA Pool Al2688 FNMA Pool Al1849 Xerox Corp Sr Nt 6.4 4136k-Df Aol Time Warner Inc Citigroup Inc Sub Nt Petrobras Intl Fin C Sector % Port Government Government Government Mortgage Mortgage Industrials Mortgage Industrials Finance Industrials 4.20 4.01 2.72 2.46 2.05 1.57 1.54 1.43 1.24 1.20 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 21.09 14.04 19.51 33.67 2.42 2.02 6.11 1.14 0.00 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 Dodge & Cox BC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 Dodge & Cox BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -1.89 -2.32 115,327 -1 -2,183 113,143 -1.27 -2.44 114,596 -2 -1,452 113,143 2.31 -0.69 110,595 -4 2,552 113,143 4.71 3.51 103,011 -5,009 15,141 113,143 6.70 5.19 97,756 -7,424 22,811 113,143 5.39 4.62 75,656 -7,424 44,911 113,143 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 175 City of Clearwater Employees Pension Fund Dodge & Cox as of 6/30/13 Cash & Equiv $2,525 2.23% Domestic Fixed $110,618 97.77% Periods from 2/04 to 6/13 Alpha Beta R-Squared 0.31 0.83 0.57 An n u a l i z e d R e t u r n % 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 d 1 T Annualized Standard Deviation% d Dodge & Cox 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.39 4.62 1.77 3.53 3.44 0.57 1.03 0.83 0.00 0.27 Asset Allocation ($000) Risk/Return Analysis 176 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low d Dodge & Cox Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years 1.38 -1.06 -2.08 -2.91 -6.63 -1.89 43 -2.32 59 12.42 3.52 0.92 -0.33 -4.68 2.31 31 -0.69 82 9.71 6.06 4.03 3.06 0.45 4.17 45 3.31 67 10.98 6.78 4.63 3.41 0.81 4.71 45 3.51 71 14.16 8.94 6.42 4.77 0.74 6.65 45 4.97 71 10.74 7.52 6.12 4.73 0.61 6.70 39 5.19 67 9.38 7.39 6.10 4.96 1.11 6.41 42 5.51 67 9.18 7.31 6.08 5.17 2.05 6.47 39 5.60 64 8.47 6.29 5.38 4.52 2.22 5.74 39 4.77 68 8.66 6.54 5.53 4.76 2.45 5.80 42 5.00 68 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% d1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 d1 177 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low d Dodge & Cox Net Ret Rank 1 BC Agg Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 4.48 0.02 -1.60 -2.65 -7.64 -1.27 43 -2.44 67 17.18 10.36 6.83 4.20 1.12 7.85 42 4.22 74 16.09 7.83 6.14 3.55 -0.28 5.10 60 7.84 24 16.77 10.20 7.27 5.69 0.51 7.53 46 6.54 62 45.09 16.76 9.88 5.85 -0.57 14.53 29 5.93 74 9.60 5.21 1.87 -6.93 -25.82 1.37 52 5.24 24 10.17 7.51 6.53 5.05 2.16 5.47 67 6.96 40 12.18 5.39 4.59 4.14 2.59 5.62 22 4.33 65 6.94 3.16 2.60 2.07 1.33 2.40 61 2.43 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% d 1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 178 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Fixed Income Portfolios High 1st Qt Median 3rd Qt Low d Dodge & Cox Return Rank 1 BC Agg Return Rank 6/13 3/13 12/12 9/12 6/12 10.98 6.78 4.63 3.41 0.81 4.71 45 3.51 71 12.61 8.49 6.48 4.98 1.15 6.20 54 5.52 67 13.95 9.10 7.12 5.52 1.36 6.82 54 6.19 66 13.85 9.51 7.35 5.69 1.12 7.08 54 6.19 67 16.74 11.21 8.42 6.26 1.11 8.14 52 6.93 67 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% d 1 d 1 d 1 d 1 d 1 Dodge & Cox Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% -2.4 -1.2 -0.5 5.1 1.9 1.5 0.6 -1.1 0.0 1.4 0.8 -0.4 -2.9 0.0 2.3 -0.6 1.1 0.7 0.8 0.4 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 179 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 2.01 0.52 1.00 -1.89 2.67 2.31 2.31 3.76 1.14 0.77 0.94 0.58 1.92 0.53 5.68 2 2 -2.32 1.58 -0.69 -0.69 3.24 -0.25 1 11 1.06 0.31 0.58 -1.89 2.67 2.31 8.00 2.53 0.50 0.72 0.43 1.82 9.28 2.63 0.42 3 9 -2.32 3.82 -0.69 7.84 3.42 0.99 3 17 1.25 0.95 0.55 -2.88 6.98 2.31 17.78 4.45 0.82 0.59 0.43 1.44 7.80 3.54 0.40 4 16 -2.32 4.57 -0.69 10.56 3.61 1.36 8 29 1.07 0.67 0.57 -2.88 6.98 -0.26 17.78 3.82 0.83 0.31 0.57 0.94 4.32 2.73 0.27 11 26 -2.44 4.57 -0.81 10.56 3.59 0.78 180 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios An n u a l i z e d R a t e o f R e t u r n 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 -4.0 -2.2 -0.4 1.3 3.1 5.0 6.8 8.6 10.4 12.2 14.0 d 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox 1 BC Agg Median 4.71452.5321 3.51713.4244 4.633.59 An n u a l i z e d R a t e o f R e t u r n 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 d 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox 1 BC Agg Median 6.70394.4546 5.19673.6130 6.124.80 181 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 6/13 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity Portfolio BC Agg 194 110,618,032 2.49 12.63 5.07 4.79 0.29 4.27 6.33 8,395 2.35 7.45 3.40 5.48 0.10 5.49 7.45 Yield to Maturity 5+ 14.1% 4 - 511.5% 3 - 424.9% 2 - 322.8% 1 - 27.0% 0 - 119.6% Time to Maturity 10+ 46.9% 7 - 1010.9% 5 - 79.3% 3 - 513.0% 1 - 310.2% 0 - 19.8% Coupon 11+ 0.0% 9 - 111.0% 7 - 914.4% 5 - 751.5% 3 - 515.7% 0 - 317.3% Quality NR 2.0% B 0.5% BA 1.9% BAA 30.1% A 15.1% AA 2.8% AAA 33.6% GOVT 14.0% Duration 8+ 18.3% 6 - 86.1% 4 - 617.3% 3 - 425.3% 1 - 323.2% 0 - 19.8% Effective Duration 8+ 17.1% 6 - 85.5% 4 - 615.3% 3 - 411.5% 1 - 337.9% 0 - 112.7% 182 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 6/30/13 Name Moody’s Quality Ratings Aaa Aa A Baa Ba B Other NR Total Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash Other Total 14.04 11.87 2.17 0.81 --- --- 0.81 --- --- 32.73 --- 9.83 21.69 1.21 --- --- --- 47.58 --- --- --- 1.70 --- --- 1.08 0.62 0.41 --- --- --- --- --- 0.73 --- --- 2.84 --- --- --- 8.71 5.66 --- 3.05 --- 1.00 --- --- --- --- --- 5.38 --- --- 15.09 --- --- --- 29.05 12.87 1.54 14.13 0.52 1.02 --- --- --- --- --- --- --- --- 30.07 --- --- --- 1.95 0.98 --- 0.96 --- --- --- --- --- --- --- --- --- --- 1.95 --- --- --- 0.48 --- 0.48 --- --- --- --- --- --- --- --- --- --- --- 0.48 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 1.06 --- --- 1.06 --- --- 0.94 0.27 --- 0.67 --- --- --- --- 1.99 14.04 11.87 2.17 43.76 19.51 2.02 21.09 1.14 2.43 33.67 0.27 9.83 22.36 1.21 6.11 --- --- 100.00 183 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 6/13 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 21.86 16.09 19.92 30.39 2.46 1.88 6.26 1.14 0.00 100.00 12.30 41.79 11.60 29.66 0.40 2.01 0.01 2.22 0.00 100.00 -2.72 -0.15 -2.86 0.13 -2.25 -1.15 -5.32 -1.50 -1.57 -1.25 -1.84 -3.45 -1.17 -4.15 -3.76 -3.96 -1.99 0.00 -1.81 -0.32 0.27 0.12 0.40 0.05 0.05 -0.08 0.01 0.00 0.48 0.05 0.01 -0.14 0.00 -0.05 0.00 -0.13 0.00 0.00 -0.25 -0.27 0.28 -0.02 0.40 -0.00 0.05 -0.22 0.01 0.00 0.23 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 -0.41% [ Actual Return -1.98% ] - [ Buy Hold Return -1.57% ] 184 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 6/30/13 United States Treas United States Treas FNMA Cl 30 - Tba Jul FNMA Cl 30 - Tba Jul FNMA Ci 15 - Tba Jul GNMA Ii Sf 30 - Tba United States Treas FNMA Ci 15 - Tba Jul United States Treas Federal Home Ln Bks Sector % Port Government Government Mortgage Mortgage Mortgage Mortgage Government Mortgage Government Government 4.30 3.48 2.95 2.62 2.19 1.72 1.70 1.46 1.32 1.29 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 14.33 24.21 19.05 37.71 0.62 1.29 0.00 1.96 0.83 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co.BC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co. BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -2.45 -2.32 91,526 -2 -2,244 89,279 -2.68 -2.44 91,744 -4 -2,461 89,279 -0.44 -0.69 89,682 -9 -394 89,279 3.68 3.51 80,167 -56 9,168 89,279 5.71 5.19 96,820 -56 -7,485 89,279 5.08 4.77 74,568 -56 14,767 89,279 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 185 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 6/30/13 Other $23 0.03% Cash & Equiv $14,899 16.69% Domestic Fixed $74,357 83.29% Periods from 9/04 to 6/13 Alpha Beta R-Squared 0.03 1.07 0.92 An n u a l i z e d R e t u r n % 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 w 1 T Annualized Standard Deviation% w Western Asset Management 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.08 4.77 1.81 3.78 3.41 1.00 0.87 0.87 0.00 0.27 Asset Allocation ($000) Risk/Return Analysis 186 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Net Ret Rank 1 BC Agg Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years 1.38 -1.06 -2.08 -2.91 -6.63 -2.45 65 -2.32 59 12.42 3.52 0.92 -0.33 -4.68 -0.44 76 -0.69 82 9.71 6.06 4.03 3.06 0.45 3.29 68 3.31 67 10.98 6.78 4.63 3.41 0.81 3.68 66 3.51 71 14.16 8.94 6.42 4.77 0.74 5.36 64 4.97 71 10.74 7.52 6.12 4.73 0.61 5.71 56 5.19 67 9.38 7.39 6.10 4.96 1.11 5.89 56 5.51 67 9.18 7.31 6.08 5.17 2.05 5.92 55 5.60 64 8.47 6.29 5.38 4.52 2.22 5.10 59 4.77 68 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 187 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Net Ret Rank 1 BC Agg Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 2008 2007 2006 2005 4.48 0.02 -1.60 -2.65 -7.64 -2.68 75 -2.44 67 17.18 10.36 6.83 4.20 1.12 5.07 64 4.22 74 16.09 7.83 6.14 3.55 -0.28 7.23 36 7.84 24 16.77 10.20 7.27 5.69 0.51 7.09 52 6.54 62 45.09 16.76 9.88 5.85 -0.57 9.24 53 5.93 74 9.60 5.21 1.87 -6.93 -25.82 3.92 38 5.24 24 10.17 7.51 6.53 5.05 2.16 6.51 50 6.96 40 12.18 5.39 4.59 4.14 2.59 4.66 46 4.33 65 6.94 3.16 2.60 2.07 1.33 2.77 41 2.43 59 -30% -20% -10% 0% 10% 20% 30% 40% 50% w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 188 City of Clearwater Employees Pension Fund June 30, 2013 Cumulative Performance Comparison Total Returns of Fixed Income Portfolios High 1st Qt Median 3rd Qt Low w Western Asset Management Co. Return Rank 1 BC Agg Return Rank 6/13 3/13 12/12 9/12 6/12 10.98 6.78 4.63 3.41 0.81 3.68 66 3.51 71 12.61 8.49 6.48 4.98 1.15 5.69 63 5.52 67 13.95 9.10 7.12 5.52 1.36 6.46 61 6.19 66 13.85 9.51 7.35 5.69 1.12 6.45 63 6.19 67 16.74 11.21 8.42 6.26 1.11 7.36 61 6.93 67 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% w 1 w 1 w 1 w 1 w 1 Western Asset Management Co. Value Added Analysis - Net of Fee 9/0812/083/096/099/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/13 -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% -1.7 0.6 -0.2 2.3 0.9 0.1 0.2 -0.1 0.3 0.2 0.1 0.0 -0.8 0.2 0.3 0.0 0.4 0.1 -0.1 -0.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 189 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 2 2 1.28 1.10 0.50 -2.45 1.99 -0.44 -0.44 3.66 1.13 0.09 0.99 -0.15 -0.49 0.49 0.53 2 2 -2.32 1.59 -0.69 -0.69 3.24 -0.25 3 9 1.04 1.01 0.58 -2.45 2.94 -0.44 7.37 3.26 0.94 0.09 0.96 1.10 3.81 0.68 0.23 3 9 -2.32 3.82 -0.69 7.84 3.42 0.99 5 15 1.15 1.40 0.60 -2.45 5.22 -0.44 14.60 4.22 1.11 -0.00 0.89 1.29 4.89 1.49 0.35 4 16 -2.32 4.57 -0.69 10.56 3.61 1.36 11 24 1.09 1.19 0.60 -2.45 5.22 -0.46 14.60 3.78 1.07 0.03 0.92 0.87 3.05 1.15 0.27 10 25 -2.32 4.57 -0.81 10.56 3.41 0.87 190 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios An n u a l i z e d R a t e o f R e t u r n 0.0 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 11.0 -4.0 -2.2 -0.4 1.3 3.1 5.0 6.8 8.6 10.4 12.2 14.0 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co. 1 BC Agg Median 3.68663.2637 3.51713.4244 4.633.59 An n u a l i z e d R a t e o f R e t u r n 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co. 1 BC Agg Median 5.71564.2243 5.19673.6130 6.124.80 191 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 6/13 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity Portfolio BC Agg 347 74,357,224 2.85 17.47 3.68 6.90 0.43 6.38 10.10 8,395 2.35 7.45 3.40 5.48 0.10 5.49 7.45 Yield to Maturity 5+ 8.0% 4 - 53.9% 3 - 437.4% 2 - 325.9% 1 - 214.3% 0 - 110.5% Time to Maturity 10+ 53.8% 7 - 1015.2% 5 - 76.0% 3 - 510.8% 1 - 39.4% 0 - 14.8% Coupon 11+ 0.1% 9 - 111.0% 7 - 93.8% 5 - 728.2% 3 - 528.9% 0 - 338.0% Quality NR 1.7% B 0.0% BA 0.3% BAA 16.4% A 15.5% AA 3.6% AAA 42.5% GOVT 20.0% Duration 8+ 22.9% 6 - 816.0% 4 - 626.4% 3 - 416.9% 1 - 313.4% 0 - 14.5% Effective Duration 8+ 21.3% 6 - 815.7% 4 - 623.3% 3 - 416.1% 1 - 317.6% 0 - 16.0% 192 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 6/30/13 Name Moody’s Quality Ratings Aaa Aa A Baa Ba B Other NR Total Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash Other Total 23.43 18.13 5.30 1.92 1.13 --- --- 0.80 --- 37.19 9.28 4.13 19.19 4.60 --- --- --- 62.55 0.26 --- 0.26 2.72 0.86 --- 1.07 0.79 0.05 0.52 --- --- --- 0.52 --- --- --- 3.56 0.09 --- 0.09 15.36 8.04 1.10 6.22 --- --- --- --- --- --- --- --- --- --- 15.45 0.43 --- 0.43 15.44 9.02 0.19 5.85 0.38 0.56 --- --- --- --- --- --- --- --- 16.43 --- --- --- 0.31 --- --- 0.31 --- --- --- --- --- --- --- --- --- --- 0.31 --- --- --- 0.01 --- --- 0.01 --- --- --- --- --- --- --- --- --- --- 0.01 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 0.86 --- --- 0.86 --- --- --- --- --- --- --- --- --- 0.83 1.69 24.21 18.13 6.08 36.62 19.05 1.29 14.32 1.97 0.61 37.71 9.28 4.13 19.19 5.12 --- --- 0.83 100.00 193 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 6/13 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 14.65 22.34 19.51 38.72 0.66 1.25 0.00 2.05 0.83 100.00 12.30 41.79 11.60 29.66 0.40 2.01 0.01 2.22 0.00 100.00 -1.71 -3.97 -3.80 -1.49 -4.88 -2.84 0.00 -3.94 -2.61 -1.25 -1.84 -3.45 -1.17 -4.15 -3.76 -3.96 -1.99 0.00 -1.81 -0.07 -0.48 -0.07 -0.12 -0.00 0.01 0.00 -0.04 0.00 -0.77 0.01 0.01 -0.13 0.06 -0.01 0.01 0.00 0.00 0.01 -0.03 -0.06 -0.47 -0.20 -0.07 -0.01 0.03 0.00 -0.04 0.01 -0.80 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 -1.46% [ Actual Return -4.07% ] - [ Buy Hold Return -2.61% ] 194 City of Clearwater Employees Pension Fund Real Estate Comp as of 6/30/13 Simon Ppty Group Inc Prologis Inc Equity Residential P Public Storage Inc Hcp Inc Health Care Reit Inc Avalonbay Cmntys Inc Macerich Co Apartment Invt & Mgm Ventas Inc GICS Sector % Port Financials Financials Financials Financials Financials Financials Financials Financials Financials Financials 11.29 7.06 6.94 5.39 5.08 4.84 4.45 4.19 4.15 3.97 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 0.83 0.00 0.00 99.17 0.00 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Real Estate Comp Policy Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Real Estate Comp Policy Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.51 0.33 80,035 0 405 80,440 4.86 6.19 76,713 -1 3,728 80,440 6.25 9.69 76,203 -492 4,729 80,440 15.39 17.49 53,691 -1,423 28,172 80,440 5.69 6.59 17,144 -1,423 64,719 80,440 3.06 4.09 19,347 -1,423 62,517 80,440 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 195 City of Clearwater Employees Pension Fund Real Estate Comp as of 6/30/13 Cash & Equiv $740 0.92% Domestic Equity $44,394 55.19% Real Estate $35,306 43.89% Periods from 4/08 to 6/13 Alpha Beta R-Squared -0.21 0.99 0.99 An n u a l i z e d R e t u r n % -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 R 1 T Annualized Standard Deviation% R Real Estate Comp 1 Policy Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 3.06 4.09 0.31 31.80 32.10 0.18 0.09 0.12 0.00 -0.31 Asset Allocation ($000) Risk/Return Analysis 196 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low R Real Estate Comp Net Ret Rank 1 Policy Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 8.14 3.58 1.77 -1.06 -3.73 0.51 62 0.33 63 17.49 13.15 9.81 6.61 -0.37 6.25 76 9.69 51 18.14 12.67 10.39 6.05 -1.65 7.96 65 11.45 35 22.18 16.75 14.25 9.01 -1.64 15.39 35 17.49 19 26.39 12.94 8.76 2.97 -9.16 24.92 8 26.13 7 8.21 3.56 -0.83 -4.62 -19.65 5.69 16 6.59 12 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% R 1 R 1 R 1 R 1 R 1 R 1 197 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low R Real Estate Comp Net Ret Rank 1 Policy Index Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 13.06 7.13 5.05 2.33 -2.10 4.86 52 6.19 35 30.19 17.60 11.49 5.97 -5.75 11.28 52 15.41 33 28.99 16.67 11.80 2.69 -16.47 8.85 59 11.62 50 30.76 18.42 13.91 2.50 -26.08 30.51 5 24.96 12 37.36 -4.71 -28.27 -32.49 -61.97 24.68 13 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% R 1 R 1 R 1 R 1 R 1 198 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.65 0.25 0.27 4.33 6.25 6.25 3.78 0.72 -0.16 0.95 1.62 8.54 1.57 -2.07 0 4 0.33 5.85 9.69 9.69 4.98 1.92 1 11 0.90 1.00 0.25 -8.90 13.08 6.21 31.82 11.10 0.99 -0.44 0.96 1.38 15.36 2.17 -0.86 1 11 -8.94 11.30 7.43 30.56 10.88 1.60 4 16 0.95 0.99 0.40 -37.93 33.98 -45.85 118.01 34.42 0.99 -0.21 0.99 0.16 5.43 3.11 -0.31 4 16 -40.40 35.93 -45.65 115.40 34.49 0.18 4 16 0.95 0.99 0.40 -37.93 33.98 -45.85 118.01 34.42 0.99 -0.21 0.99 0.16 5.43 3.11 -0.31 4 16 -40.40 35.93 -45.65 115.40 34.49 0.18 199 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios An n u a l i z e d R a t e o f R e t u r n 0.0 3.6 7.2 10.8 14.4 18.0 21.6 25.2 28.8 32.4 36.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 R 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Real Estate Comp 1 Policy Index Median 15.393511.1058 17.491910.8857 14.258.99 An n u a l i z e d R a t e o f R e t u r n 0.0 4.4 8.8 13.2 17.6 22.0 26.4 30.8 35.2 39.6 44.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 R1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Real Estate Comp 1 Policy Index Median 5.691634.4291 6.591234.4991 -0.8317.20 200 City of Clearwater Employees Pension Fund Security Capital as of 6/30/13 Simon Ppty Group Inc Prologis Inc Equity Residential P Public Storage Inc Hcp Inc Health Care Reit Inc Avalonbay Cmntys Inc Macerich Co Apartment Invt & Mgm Ventas Inc GICS Sector % Port Financials Financials Financials Financials Financials Financials Financials Financials Financials Financials 11.29 7.06 6.94 5.39 5.08 4.84 4.45 4.19 4.15 3.97 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 0.83 0.00 0.00 99.17 0.00 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Security Capital Wilshire RESI Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 Security Capital Wilshire RESI Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -0.58 -1.41 45,395 0 -263 45,132 6.05 5.89 42,557 -1 2,576 45,132 7.84 8.38 43,851 -2,001 3,283 45,132 17.13 18.30 53,691 -30,811 22,252 45,132 6.63 7.03 17,144 -30,811 58,799 45,132 3.95 4.44 19,347 -30,811 56,596 45,132 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 201 City of Clearwater Employees Pension Fund Security Capital as of 6/30/13 Cash & Equiv $738 1.64% Domestic Equity $44,394 98.36% Periods from 4/08 to 6/13 Alpha Beta R-Squared -0.09 0.99 0.99 An n u a l i z e d R e t u r n % -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 s 1 T Annualized Standard Deviation% s Security Capital 1 Wilshire RESI T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 3.95 4.44 0.31 33.21 33.51 0.18 0.11 0.12 0.00 -0.17 Asset Allocation ($000) Risk/Return Analysis 202 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years 8.14 3.58 1.77 -1.06 -3.73 -0.58 71 -1.41 77 17.49 13.15 9.81 6.61 -0.37 7.84 67 8.38 63 18.14 12.67 10.39 6.05 -1.65 9.38 57 10.45 49 22.18 16.75 14.25 9.01 -1.64 17.13 23 18.30 14 26.39 12.94 8.76 2.97 -9.16 26.32 6 26.78 2 8.21 3.56 -0.83 -4.62 -19.65 6.63 12 7.03 9 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% s 1 s 1 s 1 s 1 s 1 s 1 203 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank 6/30/13 YTD 2012 2011 2010 2009 13.06 7.13 5.05 2.33 -2.10 6.05 37 5.89 38 30.19 17.60 11.49 5.97 -5.75 16.22 29 17.55 25 28.99 16.67 11.80 2.69 -16.47 6.86 66 8.56 61 30.76 18.42 13.91 2.50 -26.08 31.62 4 29.12 7 37.36 -4.71 -28.27 -32.49 -61.97 24.68 13 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% s 1 s 1 s 1 s 1 s 1 204 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios An n u a l i z e d R a t e o f R e t u r n 0.0 4.4 8.8 13.2 17.6 22.0 26.4 30.8 35.2 39.6 44.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 s1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Security Capital 1 Wilshire RESI Median 6.631235.5592 7.03935.6693 -0.8317.20 An n u a l i z e d R a t e o f R e t u r n 0.0 4.4 8.8 13.2 17.6 22.0 26.4 30.8 35.2 39.6 44.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 s1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/13 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Security Capital 1 Wilshire RESI Median 6.631235.5592 7.03935.6693 -0.8317.20 205 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 6/30/13 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 2 2 0.88 0.62 0.25 -0.58 6.67 7.84 7.84 6.74 0.87 0.13 0.99 1.15 8.92 1.36 -0.42 2 2 -1.41 7.41 8.38 8.38 7.79 1.06 3 9 0.95 1.00 0.08 -15.51 14.90 0.35 34.30 15.97 0.99 -0.23 1.00 1.07 17.14 0.79 -1.32 3 9 -15.08 15.40 1.76 35.69 16.04 1.13 6 14 0.97 0.99 0.30 -37.93 33.98 -45.85 118.01 35.55 0.99 -0.09 0.99 0.18 6.39 2.66 -0.17 6 14 -40.40 35.93 -45.65 115.40 35.66 0.19 6 14 0.97 0.99 0.30 -37.93 33.98 -45.85 118.01 35.55 0.99 -0.09 0.99 0.18 6.39 2.66 -0.17 6 14 -40.40 35.93 -45.65 115.40 35.66 0.19 206 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 6/30/13 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Multi Employer Property Trust NCREIF ODCE Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 Multi Employer Property Trust NCREIF ODCE Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.64 3.86 25,274 0 668 25,942 4.70 6.64 24,778 0 1,164 25,942 5.69 12.17 24,545 0 1,397 25,942 9.92 14.20 0 20,000 5,942 25,942 Portfolio Performance (%) 207 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 6/30/13 Cash & Equiv $2 0.01% Real Estate $25,940 99.99% Periods from 9/10 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 M 1 T Annualized Standard Deviation% M Multi Employer Property 1 NCREIF ODCE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.92 14.20 0.11 2.60 1.77 0.03 3.77 7.97 0.00 -2.88 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 208 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank O NCREIF ODCE Fund Index Net Ret Rank Last Qtr Last Year Last 2 Years 8.14 3.58 1.77 -1.06 -3.73 2.64 39 3.86 20 17.49 13.15 9.81 6.61 -0.37 5.69 80 12.17 29 18.14 12.67 10.39 6.05 -1.65 7.72 66 12.30 28 -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% M O M O M O 209 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank O NCREIF ODCE Fund Index Net Ret Rank 6/30/13 YTD 2012 2011 13.06 7.13 5.05 2.33 -2.10 4.70 54 6.64 28 30.19 17.60 11.49 5.97 -5.75 4.70 80 10.94 55 28.99 16.67 11.80 2.69 -16.47 12.99 44 15.99 26 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M O M O M O 210 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 6/30/13 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands Group NCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands Group NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 0.93 6,212 0 0 6,212 0.12 2.47 6,205 0 7 6,212 1.59 9.35 6,544 -437 104 6,212 -0.58 5.16 111 6,067 33 6,212 Portfolio Performance (%) 211 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 6/30/13 Real Estate $6,212 100.00% Periods from 6/11 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 M 1 T Annualized Standard Deviation% M Molpus Woodlands Group 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.58 5.16 0.08 1.64 4.29 0.02 -0.40 1.18 0.00 -1.38 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 212 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs Last 4 Qtrs 8.14 3.58 1.77 -1.06 -3.73 0.00 67 0.93 58 13.06 7.13 5.05 2.33 -2.10 0.12 88 2.47 73 15.82 9.84 7.82 5.57 -0.63 -0.04 94 8.54 38 17.49 13.15 9.81 6.61 -0.37 1.59 91 9.35 53 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% M 1 M 1 M 1 M 1 213 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 6/30/13 YTD 2012 13.06 7.13 5.05 2.33 -2.10 0.12 88 2.47 73 30.19 17.60 11.49 5.97 -5.75 0.77 89 7.75 70 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M 1 M 1 214 City of Clearwater Employees Pension Fund Hancock as of 6/30/13 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 Hancock NCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 Hancock NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 0.93 3,154 0 0 3,154 -0.61 2.47 3,173 0 -19 3,154 -1.70 9.35 1,263 1,946 -55 3,154 -1.58 9.22 1,263 1,946 -55 3,154 Portfolio Performance (%) 215 City of Clearwater Employees Pension Fund Hancock as of 6/30/13 Real Estate $3,154 100.00% Periods from 6/12 to 6/13 Alpha Beta R-Squared N/A N/A N/A An n u a l i z e d R e t u r n % -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 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 H 1 T Annualized Standard Deviation% H Hancock 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -1.58 9.22 0.11 0.86 5.65 0.02 -1.96 1.61 0.00 -2.04 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 216 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/13 High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs Last 4 Qtrs 8.14 3.58 1.77 -1.06 -3.73 0.00 67 0.93 58 13.06 7.13 5.05 2.33 -2.10 -0.61 90 2.47 73 15.82 9.84 7.82 5.57 -0.63 -1.18 95 8.54 38 17.49 13.15 9.81 6.61 -0.37 -1.70 96 9.35 53 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% H 1 H 1 H 1 H 1 217 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 6/30/13 YTD 13.06 7.13 5.05 2.33 -2.10 -0.61 90 2.47 73 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% H 1 218 Dow Jones Industrial Average: This index is comprised of 30 "blue-chip" US stocks selected for their history of successful growth and wide interest among investors. The DJIA represents about 20% of the total market value of all US stocks and about 25% of the NYSE market capitalization. It is a price-weighted arithmetic average, with the divisor adjusted to reflect stock splits and the occasional stock switches in the index. NASDAQ Composite: A cap-weighted index comprised of all common stocks listed on the NASDAQ Stock Market (National Association of Securities Dealers Automated Quote system). S&P 500: A broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. This index does not contain the 500 largest companies or the most expensive stocks traded in the US. While many of the stocks are among the largest, this index also includes many relatively small companies. This index consists of approximately 380 industrial, 40 utility, 10 transportation, and 70 financial companies listed on the US market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding), calculated on a total return basis with dividend reinvested. Russell 1000: The 1000 largest companies in the Russell 3000 index, based on market capitalization. Russell 1000 Growth: A segment of the Russell 1000 with a greater-than-average growth orientation. Companies in this index have higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 1000 Growth index. Russell 1000 Value: Represents a segment of the Russell 1000 with a less-than-average growth orientation. Companies in this index have low price-to book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 1000 Growth index. Russell Mid-Cap: This index consists of the bottom 800 securities in the Russell 1000 as ranked by total market capitalization, and represents over 35% of the Russell 1000 total market cap. Russell Mid-Cap Growth: The Russell Mid-cap Growth Index offers investors access to the mid-cap growth segment of the U.S. equity universe. The Russell Midcap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate mid-cap growth manager's opportunity set. Russell Mid-Cap Value: Measures the performance of the Russell 3000 Index extended to include micro-cap securities of the Russell Micro-cap Index. The index represents approximately 99% of the U.S. Equity Market. As of the latest reconstitution, the average market capitalization was approximately $3.8 billion; the median market capitalization was approximately $612 million. The index had a total market capitalization range of approximately $368.5 billion to $67.3 million. Russell 2000: the 2000 smallest companies in the Russell 3000 index. Russell 2000 Growth: A segment of the Russell 2000 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2000 Value index. City of Clearwater Employees Pension Fund Appendix 219 Russell 2000 Value: A segment of the Russell 2000 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2000 Growth index. Russell 2500: This index consists of the bottom 500 stocks in the Russell 1000 (as ranked by market capitalization) and all of the stocks in the Russell 2000. This index is intended to be used as a measure of small to medium/small stock performance. Russell 2500 Growth: A segment of the Russell 2500 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2500 Value index. Russell 2500 Value: A segment of the Russell 2500 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2500 Growth index. Russell 3000: is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. Russell 3000 Growth: This index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. Russell 3000 Value: This index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000Value or the Russell 2000 Value indexes. MSCI EAFE: A market capitalization-weighted index representing all of the MSCI developed markets outside North America. It comprises 20 of the 22 countries in the MSCI World. These 20 countries include the 14 European countries in the MSCI Europe and the 6 Pacific countries in the MSCI Pacific. This index is created by aggregating the 20 different country indexes, all of which are created separately. MSCI World: A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. MSCI World ex U.S.: The MSCI World index excluding the U.S. portion of the index. MSCI All Country World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of January 2009 the MSCI ACWI consisted of 46 country indices comprising 23 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, City of Clearwater Employees Pension Fund Appendix 220 MSCI All Country World Index ex U.S.: The MSCI All Country World Index excluding the U.S. portion of the index. MSCI Emerging Markets Free (EMF): A market capitalization-weighted index representing 2 of the emerging markets in the world. Several factors are used to designate whether a country is considered to be emerging vs. developed, the most common of which is Gross Domestic Product Per Capita. The "Free" aspect indicates that this index includes only securities that are allowed to be purchased by global investors. This index is created by aggregating the 26 different country indexes, all of which are created separately. Barclays Capital U.S. Aggregate Bond: This index is made up of the Barclays Capital U.S. Government/Credit, the Mortgage-Backed Securities, and the Asset-Backed Securities indices. All issues in the index are rated investment grade or higher, have at least on year maturity, and have an outstanding par value of at least $100 million. Barclays Capital U.S. Government/Credit: This index includes all bonds that are in the Barclays Capital U.S. Government Bond and the Barclays Capital U.S. Credit Bond indices. Barclays Capital U.S. Government/Credit Intermediate: All bonds by the Barclays Capital U.S. Government/Credit Bond index with maturities of 1 to 10 years. Barclays Capital Municipal Bond: This market capitalization-weighted index includes investment grade tax-exempt bonds and is classified into four main sectors General Obligation, Revenue, Insured, and Pre-refunded. To be included in this index, the original transaction size of a bond must have been greater than $50 million. Barclays Capital U.S. Treasury Index: This index includes public obligations of the U.S. Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index. In addition, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS, are excluded. STRIPS are excluded from the index because their inclusion would result in double-counting. Securities in the Index roll up to the U.S. Aggregate, U.S. Universal and Global Aggregate Indices. Barclays Capital U.S. TIPS: This index measures the performance of U.S. Treasury Inflation Protection Securities. Merrill Lynch Convertibles: The convertible securities used in this index span all corporate sectors and must have a par amount outstanding of $25 million or more. The maturity must be at least on year. The coupon range must be equal to or greater than zero and all equity of bonds are included. Excluded from this index are preferred equity redemption stocks. When the component bonds of this index convert into common stock, the converted securities are dropped from the index. Merrill Lynch Corp/Govt 1-3 Years A or Better: An unmanaged index of government and corporate fixed-rate debt issues with maturities between one and 3 years. Merrill Lynch High Yield Master: Market capitalization weighted index providing a broad-based measure of bonds in the US domestic bond market rated below investment grade, but not in default. Includes only issues with a credit rating of BB1 or below as rated by Moody's and/or S&P, at least $100 million in face value outstanding and a remaining term to final maturity equal to or greater than one year. Dow Wilshire REIT: A measurement of equity REITs and Real Estate operating Companies. No special-purpose or health care REITs are included. It is a market capitalization weighted index for which returns are calculated monthly City of Clearwater Employees Pension Fund Appendix 221 Alpha: A risk-adjusted measure of 'excess return' on an investment. That is, it measures an active manager's performance in excess of a benchmark index or 'risk-free' investment. An alpha of 1.0 means the manager outperformed the market 1.0%. A positive alpha is the extra return awarded to the investor for taking additional risk rather than accepting the market return. Batting Average: The percent of periods the manager has beaten the benchmark. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Beta: A measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager's return series to match that of the benchmark used to measure beta. Down Market Capture Ratio: A measure of a manager's performance in down markets. A down-market is defined as those periods (months or quarters) in which market return is less than 0. It tells you what percentage of the down-market was captured by the manager. Information Ratio: The Information Ratio measures the consistency with which a manager beats a benchmark. R-squared: The R-Squared (R2) of a manager versus a benchmark is a measure of how closely related the variance of the manager returns and the variance of the benchmark returns are. Sharpe Ratio: The Sharpe Ratio is a risk-adjusted measure of return which uses standard deviation to represent risk. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. Standard Deviation: Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. A large standard deviation implies that there have been large swings in the return series of the manager. Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Treynor Ratio: The Treynor Ratio is a risk-adjusted measure of return which uses beta to represent risk. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the portfolio's beta value. Up Market Capture Ratio: A measure of a manager's performance in up markets. An up-market is defined as those periods (months or quarters) in which market return is greater than 0. It tells you what percentage of the up-market was captured by the manager. City of Clearwater Employees Pension Fund Appendix 222 This material is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. Any opinions expressed are our current opinions only. Assumptions, opinions and estimates constitute CapTrust's judgment as of the date of this material and are subject to change without notice. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and it should not be relied upon as such. CapTrust accepts no liability for loss arising from the use of this material. Performance Comparison Page Information: Shaded Areas represent where the investment objective was achieved either by: 1)The investment return vs the index; 2)The investment return universe ranking (the lower the number the better the ranking) Manager performance begins on the last day of the inception month. Any investment results depicted represent historical net performance. Past performance is no guarantee of future performance. City of Clearwater Employees Pension Fund Appendix Disclaimer Page 223