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EMPLOYEES PENSION PLAN PERFORMANCE REVIEW - JUNE 30, 2014102 W. Whiting Street, Suite 400, Tampa, FL 33602-5140 ♦ Tel: 813/218-5000 Eric W. Bailey, CFA John J. Griffith Managing Principal Senior Investment Consultant CITY OF CLEARWATER EMPLOYEES’ PENSION PLAN PERFORMANCE REVIEW June30, 2014 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, 2014 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Index QTR YTD1 Yr3 Yr5 Yr10 Yr Domestic Fixed Income 3 month T-Bill 0.01%0.02%0.05%0.07%0.11%1.63% Barclays Capital 1-3 year Gov't 0.27%0.42%0.77%0.66%1.24%2.72% Barclays Capital Interm Gov't 0.91%1.55%1.53%1.96%2.83%3.91% Barclays Capital Interm Credit 1.79%3.45%5.21%4.45%6.44%5.23% Barclays Capital Interm Govt/Cred1.23%2.25%2.86%2.83%4.09%4.33% Barclays Capital Aggregate Bond 2.04%3.93%4.37%3.66%4.85%4.93% Domestic Equity Standard & Poor's 500 5.23%7.14%24.61%16.58%18.83%7.78% Dow Jones Industrial Average 2.83%2.68%15.56%13.57%17.83%7.63% Wilshire 5000 Total Market 4.86%7.00%24.92%16.29%19.15%8.28% Wilshire US REIT 7.22%18.08%13.54%11.69%24.04%9.55% Russell 1000 - Large Cap 5.12%7.27%25.35%16.63%19.25%8.19% Russell 1000 Growth - Large Cap5.13%6.31%26.92%16.26%19.24%8.20% Russell 1000 Value - Large Cap 5.10%8.28%23.81%16.92%19.23%8.03% Russell Midcap 4.97%8.67%26.85%16.09%22.07%10.43% Russell Midcap Growth 4.37%6.51%26.04%14.54%21.16%9.83% Russell Midcap Value 5.62%11.14%27.76%17.56%22.97%10.66% Russell 2000 - Small Cap 2.05%3.19%23.64%14.57%20.21%8.70% Russell 2000 Growth - Small Cap1.72%2.22%24.73%14.49%20.50%9.04% Russell 2000 Value - Small Cap 2.38%4.20%22.54%14.65%19.88%8.24% International Equity MSCI EAFE 4.34%5.14%24.09%8.59%12.27%7.42% MSCI World 5.05%6.52%24.71%12.45%15.62%7.84% MSCI EM 6.71%6.32%14.68%-0.06%9.58%12.30% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg3.00%4.89%10.44%7.54%9.05%5.79% 40% S&P 500 / 60% Barclays Agg3.32%5.21%12.47%8.83%10.45%6.07% 50% S&P 500 / 50% Barclays Agg3.64%5.53%14.49%10.12%11.84%6.36% 60% S&P 500 / 40% Barclays Agg3.96%5.85%16.51%11.42%13.24%6.64% 70% S&P 500 / 30% Barclays Agg4.28%6.17%18.54%12.71%14.64%6.93% 3 CapitalMarketsOverview U.S.Markets ItwasanotherpositivequarterforequitiesintheU.S.markets.StatisticssupportthemonthofMayassignaling thebeginningofslowermarketactivity,butthatdidnotholdtruethisyearastheS&P500Index(S&P500)and DowJonesIndustrialAverage(DJIA)eachreachednewhighsduringthequarter. Investorsandtradershadlowexpectationsheadingintoearningsseasonthisquarterandrespondedpositivelyto thebetter-than-expectedresults.AccordingtoFactSet,75%ofS&P500companiesreportedresultsthatsurpassed consensusestimates.Improvementsinretailsalesandindustrialproductionsupportedstrongermarketsearlyin thequarter,andimprovementsinthehousingmarketandmanufacturingactivityatthemid-pointwere encouraging.Better-than-expectedeconomicdatareportedinJunekeptthemomentumupuntilthemarketswere finallyslowedbyvaluationconcernsandsecondthoughtsaboutrevisedfirst-quarterGDPnumbers. Bolsteredbyitsfifthconsecutivemonthlygain,theS&P500returnedbetterthan5%foritssixthconsecutive quarterlygain.TheNasdaqCompositeIndex(NASDAQ)keptpaceandalsogainedbetterthan5%forthe quarter.TheDowJonesIndustrialAveragewasupamoremodest2%duringthequarter.Forthefirsthalfofthe year,theS&P500gainedmorethan7%,theNASDAQwasupbetterthan6%andtheDJIAwasup2.7%. InternationalMarkets EarlyeconomicprojectionsindicatedtherecoveryinEuroperemainedweak,butcontinuedtoshowsignsof improvement.Themanufacturingoutlooksignaledaslowdownthatwasexpectedtoputpressureonemployment opportunitiesandfurthererodeinvestorconfidenceintherecovery,butmid-quarternumbersshowedthat manufacturinghadactuallyexpandedmorethanexpected.Themarketsrespondedpositively,butinvestor confidencedidnot.AftermonthsofdovishstatementsEuropeanCentralBank(ECB)PresidentMarioDraghi tooktheunprecedentedactionofcuttinginterestratespaidtobanksfordepositstobelowzerobyloweringits depositrateto-0.10%.TheECBalsocutitsbenchmarklendingratefrom.25%to.15%.Investorconfidencewas notswayedandthemarketssufferedalatepullback,butstillendedthequarterinpositiveterritory. Asianmarkets,whichhadbeenexperiencingvolatility,madeadecisivemoveupwardduringthesecondquarter. WeakmanufacturingdatafromChinaearlyinthequarterwasmorethanoffsetbystrongermanufacturinglatein theperiod.TheMSCIAsia-PacificIndexwasupanimpressive7.4%forthequarter.OptimismspreadtoJapan afterPrimeMinisterShinzoAbereaffirmedpolicyactionstoboostgrowthandenddeflation.Japan’sTopixIndex advanced5.7%forthequarter. Emergingmarketsledthedevelopedmarketsthisquarter.TheMSCIEmergingMarketsIndexincreasedforthe fifthstraightmonthandendedthequarterup6.6%.Itwasthelargestquarterlygainfortheindexin2yearsas investorslookforbetterreturnopportunities. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:WellsFargoAdvisors Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. CAPITAL MARKETS REVIEW –JUNE 30, 2014 4 CapitalMarketsOverview U.S.TreasuryandCorporateDebt GeopoliticalconcernsintheMiddleEastandUkrainedrove U.S.Treasurypriceshigherandyieldslowerearlyin thequarter.Theoverallriskaversionstrategycontinuedthroughtheendofthequarter.Theyieldonthe benchmark10-yearnotefinishedJuneat2.54%,down52basispointsfromthestartoftheyear.Gainsalso extendedtoriskierdebtinstrumentsasinvestorssoughthigheryieldsinthecontinuedlowinterestrate environment.Below-investmentgradebondsgained2.4%forthequarterandareup5.5%fortheyear. Commodities Commoditiescontinuetoshowimprovement.Aftergaining3.07%inAprilandlosing1.79%inMay, commoditiesturnedpositiveagaininJunewitha0.48%return.Forthequarter,theBloombergCommodityIndex added.70%,bringingitsyear-to-datetotalto7.36%.AweakeningU.S.dollaranditsallureasasafehaven investmentduringheightenedgeopoliticalconcernshelpedpreciousmetals.Goldcontinuestoimproveandis nowupnearly10%fortheyearafterlosingmorethan28%lastyear.Copperwasup5.4%forthequarterafter gainsinthehousingmarketsignaledstrongerdemandfortheindustrialmetal. ViolenceintheMiddleEastpromptedsupplyconcernsanddroveoilpriceshigher.Thepriceofcrudeperbarrel wasup3.7%forthequarterandmorethan7%fortheyear. Thebullmarketcontinuedtorunamidstincreasedmarketchoppiness ¾ValueoutperformedGrowthstocksinthesecondquarterinmidandsmall capitalizationandcontinuedtobe pacedbyMidcapValueastheRussellMidcapValueisnowupover11.1%year-to-date. ¾Aftertaking2013off,thesecondquartersmallcapswingreturnedasannualizedvolatility(basedonthe quarter’smonthlyreturns)leapttodoubledigitsintheRussell2000. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:WellsFargoAdvisors,ZephyrStyleAdvisor,FactSet,MSCIBarra,Standard&Poor’s Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. CAPITAL MARKETS REVIEW –JUNE 30, 2014 Russell 2000 April Return May Return June Return Standard Deviation Annualized Volatility 2014-3.90.85.33.813.0 2013-0.44.0-0.52.17.3 2012-1.5-6.65.04.816.5 20112.6-1.9-2.32.27.8 20105.7-7.6-7.86.321.8 200915.53.01.56.321.7 20084.24.6-7.75.719.8 20071.84.1-1.52.37.9 20060.0-5.60.62.89.7 2005-5.76.63.95.318.3 2004-5.11.64.23.913.6 Second Quarter Domestic Equity Returns Value Growth Ru s s e l l 10 0 0 5.15.15.1 Ru s s e l l Mi d c a p 5.65.04.4 Ru s s e l l 20 0 0 2.42.11.7 -10-50510 5 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSource:WellsFargoAdvisors,ZephyrStyleAdvisor,MSCIBarra,Standard&Poor’s,FactSet Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Investorscontinuedtorotateoutofcyclicalandmomentumstocks ¾All10sectorsoftheS&P500hadapositivereturnforthesecondquarter,ledbyEnergy(up13%forthe year)&Utilities(up18.7%fortheyear). ¾TheS&P500posted8newclosinghighsoverthe21tradingdaysofJune. ¾TheDowJonesIndustrialAveragerose368.94pointsinthequarterledbyChevronwhichcontributed74.75 pointstotheindex. CAPITAL MARKETS REVIEW –JUNE 30, 2014 Best Performing Subsectors 1 quarter S&P 500 Brewers 26.72% S&P 500 Oil & Gas Storage & Transportation24.46% S&P 500 HomeEntertainment Software23.65% S&P 500 Oil & Gas Equipment & Services19.38% S&P 500 Oil & Gas Exploration &Production18.18% Worst Performing Subsectors 1 quarter S&P 500 Home Furnishing Retail -16.60% S&P 500 HealthCare Technology -8.30% S&P 500 Construction& Engineering-6.76% S&P 500 ApparelRetail -6.47% S&P 500 Household Appliances -6.37% TickerDJIA Points Contributors1 quarter CVXChevronCorp 74.75 points CATCaterpillar Inc.59.72 TRVTravelers Cos Inc.57.60 MMM3M Co 48.68 JNJJohnson & Johnson 41.04 TickerPoint Detractors1 quarter IBMInternational Business Machines-72.05 points VVisa Inc.-33.07 JPMJP Morgan Chase & Co -19.84 PFEPfizerInc.-15.67 PGProcter & Gamble -12.91 6 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Data Sources: Wells Fargo Advisors, JPMorgan Asset Mgmt., MSCI, Oppenheimer Funds Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Ifit’snotonething,it’sanother… ¾AttheirJune5th meeting,theEuropeanCentralBankreducedtheratesfortheECBdepositsfrom0%to-0.1% whilecuttingtheirbenchmarklendingrateto0.15%,downfrom0.25%.TheMSCIEuropeex-U.K.gained 2.6%lastquarterandtheequityvaluationsarestillatadiscountcomparedtotheirhistoricalaverages.Low inflationisentrenchingitselfthroughouttheEurozone. ¾TheMSCIEAFE(Europe,Australasia,FarEast)Indexisafreefloat-adjustedindexconsistingof21 developedcountryindexes.AsofNovember27,2013,GreeceandMoroccowereremovedfromtheindex which,asofJune2,includesAustralia,Austria,Belgium,Denmark,Finland,France,Germany,HongKong, Ireland,Israel,Italy,Japan,theNetherlands,NewZealand,Norway,Portugal,Singapore,Spain,Sweden, SwitzerlandandtheUnitedKingdom. ¾Withunemploymentatjust3.6%,Japanisclosertofullemployment.However,coreconsumerpricesjumped 3.2%inAprilwhichwasthelargestjumpin20years.TheBankofJapanhasgivenassurancesthatitwill continuetobuygovernmentbondsandotherassetsat anannualpaceofabout¥60-¥70trillion($579-$676B USD).TheMSCIJapanIndexreversedcourseandreturnedapositive6.7%inthesecondquarterandisnow up0.9%in2014. CAPITAL MARKETS REVIEW –JUNE 30, 2014 Country/RegionLocalUSDLocalUSD Regions/Broad Indexes USA (S&P 500)-5.2-7.1 EAFE 3.74.33.55.1 Europe ex-U.K.3.42.67.16.3 Pacific ex-Japan 3.04.43.67.5 Emerging Markets 5.26.74.86.3 MSCI: Selected Countries United Kingdom 3.46.11.95.2 France 3.12.46.15.4 Germany 2.92.32.62.0 Japan 4.96.7-2.80.9 China 5.65.7-0.5-0.5 India 13.512.718.521.9 Brazil 5.27.73.510.7 Russia 8.110.8-2.4-5.2 Returns are reported gross 2Q14YTD 2014 7 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Data Sources: Wells Fargo Advisors, MSCI Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Location,Location,Location ¾China’smanufacturingpurchasingmanagersindexhasstabilizedafterslowingearlierintheyear,butthe slowdowninthehousingmarketisstillweighingontheeconomy.ForthesecondquartertheMSCIChina Indexwasup5.7%andisnowdownjust-0.5%for2014. ¾TheBrazilianRealhasrallied7.2%thisyearthough Brazil’saccountdeficitworsenedfromexports continuingtofallyear-over-year.TheMSCIBrazilIndexwasupover7%forthesecondquarterandhas risenover10%in2014. ¾AsofJune2,theMSCIEmergingMarketsindexisafreefloat-adjustedindexof23emergingmarket countryindexes.QatarandtheUnitedArabEmirates wereaddedtotheindexwhichalsoincludesBrazil, Chile,China,Columbia,CzechRepublic,Egypt,Greece,Hungary,India,Indonesia,Korea,Malaysia, Mexico,Peru,Philippines,Poland,Russia,SouthAfrica,Taiwan,Thailand,andTurkey. ¾ViolenceinIraqandthecaptureofterritoriesbytheSunnimilitiahascausedinvestorconcernsandhigher oilprices.Onlyabout1millionbarrelsofoilperday ofthe3.5millionbarrelsrunthroughthenorthern pipeline.TheremainingresourcesareproducedinandexportedfromBasra. ¾InIndia’selectioninMay,NarendraModioftheBJPwonasizeablemajoritytoousttherulingCongress party.Indianequitiesandcurrencyralliedwithasenseofeuphoriacreatinga12.7%returnfortheMSCI IndiaIndexduringthequarterandtakingtheyear-to-datereturntoover21%. CAPITAL MARKETS REVIEW –JUNE 30, 2014 10.2 11.7 9.8 15.6 13.3 13.9 21.8 12.8 17.2 14.3 20.6 23 22.4 22.4 16.516.5 19.9 17 20.4 38.7 17.7 17.9 15.3 18.9 19.4 19.7 0 5 10 15 20 25 30 35 40 45 Cyclically Adjusted Price‐to Earnings (CAPE) Ratio Current P/E 10 year Historical Avg. P/E Discount In‐Line 8 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:WellsFargoSecuritires,LLC,ZephyrStyleAdvisor,Barclays,U.S.Dept.oftheTreasury Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. ReductionofQuantitativeEasingseemstohave littleimpactonyields ¾The10-yearnotecontinuedtodeclinetoalow of2.44%.The10-yearnoteendedthequarter down20basispoints,yielding2.53%. ¾TheFedcontinuestoslowitsbondbuying program.However,sincethepolicywas announcedlastyeartheexpectationshave alreadybeenbuiltintothemarket. Bondsmakegainsacrosscreditqualityand sectors ¾Fixedincomemarketswereupthisquarter. Returnsrangedfrom3.43%forthelowest investmentgradedebt(BBB)to1.23%forAAA paper.ThereturnforBBratedbondswasup, withareturnof2.65%. ¾Bysector,corporatedebthadthelargest increasethisquarter,up2.67%,followedby highyielddebt,up2.48%.Governmentdebt gained2.03%andmortgagepapergained 1.46%. ¾Bondsyieldsmovedlowerastheinterestrate curveflattenedandthebondmarketsawan increasedlevelofstability,benefitinglonger maturitiesthemost. CAPITAL MARKETS REVIEW –JUNE 30, 2014 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% U.S. 10-Year Treasury Yield 9 Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. Source:BloombergLPandWellsFargoAdvisors Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. Commodities ¾AsmeasuredbytheBloombergCommodityIndex,commoditypriceshaverisenfiveoutofthefirstsix monthsin2014.PricesdeclinedinMay,butareup7.36%fortheyear. ¾DemandforcopperincreasedastheU.S.housingmarketshowedsignsofimprovement. ¾TensionintheMiddleEastcausedanincreaseincrudeoilprices.WestTexasIntermediateclosedover$105 perbarrelandisupmorethan7%fortheyear. CAPITAL MARKETS REVIEW –JUNE 30, 2014 Commodities Current 3 Months Ago 1 Year Ago 6/30/2014 3/31/2014 6/28/2013 Gold (per Troy ounce)$1,326.90 $1,284.40 $1,223.80 Oil (per barrel )$105.81 $101.21 $96.67 Co pper (per pound)$3.18 $3.04 $3.06 0 50 100 150 200 250 Bloomberg Commodity Index 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, 2014 CAPITAL MARKET INDEX RETURNS Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. 19951996199719981999200020012002200320042005200620072008200920102011201220132014 Russell DJ Russell Russell Russell DJ Russell BarclaysRussell DJ DJ DJ Russell BarclaysRussell Russell DJ Russell Russell DJ BEST 1000 Wilshire 1000 10002000Wilshire 2000Agg2000Wilshire Wilshire Wilshire 1000Agg10002000Wilshire 20002000Wilshire Value REIT Value GrowthGrowthREITValueBondGrowthREITREITREITGrowthBondGrowthGrowthREITValueGrowthREIT 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%43.30%18.08% Russell Russell Russell DJ DJ Russell Russell Russell Russell DJ Barclays Russell Russell Russell 100010002000Wilshire Wilshire 2000200020002000Wilshire Agg 1000 2000 1000 Growth GrowthValueREITREITValueValue ValueGrowthREITBond Value Value Value 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%34.52%8.28% Russell Russell BarclaysBarclaysRussell Russell Russell Russell Russell Russell Russell Russell 1000 2000 AggAgg2000 1000 20002000 1000 20001000 1000 Growth Value BondBondValue Value ValueGrowth Value ValueGrowth Growth 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%33.48%7.14% Russell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell Barclays DJ Russell DJ Russell Russell 2000 1000 1000 1000 100010001000 Wilshire 1000 1000 1000 Agg Wilshire 1000 Wilshire 1000 1000 Growth Value Growth Value ValueValueValue REIT Value Growth Value Bond REITGrowth REIT Value Growth 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%32.53%6.31% Russell Russell DJ Barclays Russell Russell Russell Russell Russell Russell Russell 20002000Wilshire Agg 1000 2000 1000 2000 1000 10001000 ValueValueREITBond Value Growth Value Growth Growth ValueValue 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%32.39%5.14% BarclaysRussell Russell Russell DJ Russell Russell Russell Russell Russell Russell Russell Russell Russell Agg200020002000Wilshire 1000 20002000 1000 20002000 20001000 2000 BondGrowthGrowthGrowthREIT Growth ValueGrowth Value GrowthValue GrowthGrowth Value 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%23.29%4.20% DJ BarclaysRussell BarclaysRussell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell DJ Barclays Wilshire Agg2000Agg100010001000 1000200010002000Wilshire 1000 20002000Wilshire Agg REIT BondValueBondGrowthGrowthGrowth GrowthGrowthGrowthValueREIT Value ValueGrowthREITBond 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%1.86%3.93% Barclays DJ Russell Russell Russell BarclaysBarclaysBarclaysBarclaysDJ BarclaysBarclays BarclaysBarclaysRussell Agg Wilshire 20002000 2000AggAggAggAggWilshire AggAgg AggAgg2000 WORST Bond REITValueGrowth GrowthBondBondBondBondREIT BondBond BondBondGrowth 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%-2.02%2.22% S&P 500 MSCI EAFE 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 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 -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 12 / 1 2 - 1 2 / 1 3 Domestic Equity vs. Fixed Income Mean 1 Standard Deviation 2 Standard Deviations Fixed Income Outperforming Domestic Equity OutperformingDomestic Equity vs. Fixed Income CAPITAL MARKETS REVIEW –JUNE 30, 2014 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. 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 12 / 1 2 - 1 2 / 1 3 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, 2014 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.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 12 / 1 2 - 1 2 / 1 3 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 12 / 1 2 - 1 2 / 1 3 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, 2014 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.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 12 / 1 2 - 1 2 / 1 3 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 12 / 1 2 - 1 2 / 1 3 Domestic Equity vs. REIT Mean 1 Standard Deviation 2 Standard Deviations REIT Outperforming Domestic Equity OutperformingDomesticEquity vs. REIT 14 CAPITAL MARKETS REVIEW –JUNE 30, 2014 RELATIVE PERFORMANCE OF KEY INDICES Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. DataSources:Morningstar Dataprovidedbysourcesbelievedtobereliablebutnoguaranteeismadeastoitsaccuracy.Pastperformanceisnoguaranteeoffutureperformance. -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 120 12 / 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 12 / 1 2 - 1 2 / 1 3 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, 2014 GENERAL DISCLOSURE STATEMENT Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 16 CAPITAL MARKETS REVIEW –JUNE 30, 2014 GENERAL DISCLOSURE STATEMENT DowJonesIndustrialAverage -Thisindexiscomprisedof30"blue-chip"USstocksselectedfortheirhistoryof successfulgrowthandwideinterestamonginvestors.TheDJIArepresentsabout20%ofthetotalmarketvalueofallUS stocksandabout25%oftheNYSEmarketcapitalization.It isaprice-weightedarithmeticaverage,withthedivisor adjustedtoreflectstocksplitsandtheoccasionalstockswitchesintheindex. NASDAQComposite -Acap-weightedindexcomprisedofallcommonstocksthatarelistedontheNASDAQStock Market(NationalAssociationofSecuritiesDealersAutomatedQuotationsystem). S&P500 -Abroad-basedmeasurementofchangesinstockmarketconditionsbasedontheaverageperformanceof500 widelyheldcommonstocks.Thisindexdoesnotcontainthe 500largestcompaniesnorthemostexpensivestockstraded intheU.S.Whilemanyofthestocksareamongthelargest,thisindexalsoincludesmanyrelativelysmallcompanies.This indexconsistsofapproximately380industrial,40utility,10transportationand70financialcompanieslistedonU.S. marketexchanges.Itisacapitalization-weightedindex(stockpricetimesnumberofsharesoutstanding),calculatedona totalreturnbasiswithdividendsreinvested. S&P500/CitigroupGrowth -TheS&P/CitigroupGrowthtrackstheperformanceofthosestocksintheS&P500with lowerbook-to-priceratios.Acap-weightedindex,itisrebalancedsemi-annually,basedonitsprice-to-bookratiosand marketcapitalizationsatthecloseoftradingonemonthprior.Theindexisadjustedeachmonthtoreflectchangesinthe S&P500.Thisindexismoreheavilyweightedintheconsumer non-cyclical,healthcare,andtechnologysectorsthanthe S&P500. S&P500/CitigroupValue -TheS&PCitigroup/ValuetrackstheperformanceofthosestocksintheS&P500withhigher book-to-priceratios.Acap-weightedindex,itisrebalanced semi-annuallyonJanuary1andJuly1,basedonitsbook-to- priceratiosandmarketcapitalizationsatthecloseoftradingonemonthprior.Theindexisadjustedeachmonthtoreflect changesintheS&P500.Thisindextendstobemoreheavilyconcentratedintheenergyandfinancialsectorsthanthe S&P500. Russell1000 -The1000largestcompaniesintheRussell3000index,basedonmarketcapitalization. Russell1000Growth -AsegmentoftheRussell1000withagreater-than-averagegrowthorientation.Companiesinthis indexhavehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthan theRussell1000Valueindex. Russell1000Value -RepresentsasegmentoftheRussell1000withaless-than-averagegrowthorientation.Companies inthisindexhavelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvalues thantheRussell1000GrowthIndex. RussellMidCap -Theindexconsistingofthebottom800securitiesintheRussell1000asrankedbytotalmarket capitalization,anditrepresentsover35%oftheRussell1000totalmarketcap. Russell2000 -The2000smallestcompaniesintheRussell3000index. Russell2000Growth -AsegmentoftheRussell2000withagreater-than-averagegrowthorientation.Companiesinthis indexhavehigherprice-to-bookandprice-earningsratios,lowerdividendyieldsandhigherforecastedgrowthvaluesthan theRussell2000Valueindex. Russell2000Value -AsegmentoftheRussell2000withaless-than-averagegrowthorientation.Companiesinthisindex havelowprice-to-bookandprice-earningsratios,higherdividendyieldsandlowerforecastedgrowthvaluesthanthe Russell2000Growthindex. Russell2500 -Theindexconsistingofthebottom500stocksintheRussell1000(asrankedbymarketcapitalization)and allofthestocksintheRussell2000.Thisindexisintendedtobeusedasameasureofsmalltomedium/smallstock performance,anditrepresentsover22%oftheRussell3000totalmarketcap. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 17 CAPITAL MARKETS REVIEW –JUNE 30, 2014 GENERAL DISCLOSURE STATEMENT MSCIEAFE -Amarketcapitalization-weightedindexrepresentingalloftheMSCIdevelopedmarketsoutsideNorth America.Itcomprises20ofthe22countriesintheMSCIWorld.These20countriesincludethe14Europeancountriesin theMSCIEuropeandthe6PacificcountriesintheMSCIPacific.Thisindexiscreatedbyaggregatingthe20different countryindexes,allifwhicharecreatedseparately. MSCIWorld -Thismarketcapitalization-weightedindexrepresentsall22oftheMSCIdevelopedmarketsintheworld. Itiscreatedbyaggregatingthe22differentcountryindexes,allifwhich arecreatedseparately. MSCIEmergingMarketsFree(EMF)-Amarketcapitalization-weightedindexrepresenting26oftheemerging marketsintheworld.Severalfactorsareusedtodesignatewhetheracountryisconsideredtobeemergingvs.developed, themostcommonofwhichisGrossDomesticProductPerCapita.The"Free"aspectindicatesthatthisindexincludes onlysecuritiesthatareallowedtobepurchasedbyglobalinvestors.Thisindexiscreatedbyaggregatingthe26different countryindexes,allifwhicharecreatedseparately. BarclaysCapitalGovernment/Credit -ThisindexincludesallbondsthatareintheBarclaysCapitalGovernmentBond andtheBarclaysCapitalCreditBondindices. BarclaysCapitalGovernmentIntermediate -AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwith maturitiesof1and10years. BarclaysCapitalAggregateBond -ThisindexismadeupoftheBarclaysCapitalGovernment/Credit,theMortgage- BackedSecurities,andtheAsset-BackedSecuritiesindices.Allissuesintheindexareratedinvestmentgradeorhigher, haveatleastoneyeartomaturity,andhaveanoutstandingparvalueofatleast$100million. BarclaysCapitalGovernmentLongTerm -AllbondscoveredbytheBarclaysCapitalGovernmentBondindexwith maturitiesof10yearsorgreater. BarclaysCapitalMunicipalBond -Thismarketcapweightedindexincludesinvestmentgradetax-exemptbondsandis classifiedintofourmainsectors:GeneralObligation,Revenue,Insured,andPre-refunded.Tobeincludedinthisindex, theoriginaltransactionsizeofabondmusthavebeengreaterthan$50million. MerrillLynchConvertibles -Theconvertiblesecuritiesusedinthisindexspanallcorporatesectorsandmusthaveapar amountoutstandingof$25millionormore.Thematuritymustbeatleastoneyear.Thecouponrangemustbeequaltoor greaterthanzeroandallqualityofbondsareincluded.Excludedfromthisindexarepreferredequityredemptionstocks. Whenthecomponentbondsofthisindexconvertintocommonstock,theconvertedsecuritiesaredroppedfromtheindex. MerrillLynchHighYieldMaster -Market-capweightedindexprovidingabroad-basedmeasureofbondsintheUS domesticbondmarketratedbelowinvestmentgradebutnotindefault.IncludesonlyissueswithacreditratingofBB1or belowasratedbyMoody’sand/orS&P,atleast$100millionin facevalueoutstandingandaremainingtermtofinal maturityequaltoorgreaterthanoneyear. DowJonesWilshireREITIndex -AmeasurementofequityREITsandRealEstateOperatingCompanies.Nospecial- purposeorhealthcareREITsareincluded.It isamarketcapitalization-weightedindexforwhichreturnsarecalculated monthlyusingbuyandholdmethodology;itisrebalancedmonthly. Citigroup3MonthTreasuryBill-Representingthemonthlyreturnequivalentsofyieldaveragesthatarenotmarkedto market,thisindexisanaverageofthelastthreethree-monthTreasurybillissues. 50/50Blend(S&P500/BCIGC)–Ablendedbenchmarkconsistingof50%S&P500and50%BarclaysCapital Government/CreditIntermediateindices. Thisand/ortheaccompanyinginformationwaspreparedbyorobtainedfromsourceswhichWellsFargoAdvisorsbelievestobereliablebutdoesnotguaranteeitsaccuracy. Pleaseseeimportantdisclosureandreferenceinformationattheconclusionofthisreport.Pastperformanceisnotindicativeoffutureresults. 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 6/30/14 Manager Market Value Actual % Policy % Voya 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 134,334,016.36 48,200,024.34 45,018,456.45 43,041,694.41 52,974,227.70 58,004,014.96 17,265,992.76 18,589,044.21 33,487,394.16 450,914,865.35 47,124,364.22 39,502,063.27 41,008,089.29 127,634,516.78 120,544,219.01 93,599,394.62 401,450.22 -4,074,801.25 210,470,262.60 34,174,710.32 44,331,872.92 7,581,156.00 3,781,810.00 89,869,549.24 878,889,193.97 15.28 5.48 5.12 4.90 6.03 6.60 1.96 2.12 3.81 51.31 5.36 4.49 4.67 14.52 13.72 10.65 0.05 -0.46 23.95 3.89 5.04 0.86 0.43 10.23 100.00 42.00 18.00 30.00 10.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 3/31/14 - 6/30/14 Manager Name Beginning Value Net Contrib Invest Fees Invest Gain/Loss Ending Value Voya 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 126,791,800 45,855,082 43,368,048 40,745,507 52,910,193 55,511,627 17,236,438 18,646,923 34,292,388 435,358,005 45,391,020 36,917,501 38,699,597 121,008,117 117,995,959 91,466,874 264,460 5,274,730 215,002,023 28,506,135 46,773,569 7,581,156 3,781,810 86,642,670 858,010,815 -819 0 -304 1,587 -903 -628 -241 -146 -348 -1,802 -2,553 -3,140 0 -5,692 -1,144 -648 136,340 -9,349,531 -9,214,983 5,000,000 -5,700,311 0 0 -700,311 -9,922,788 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 7,543,036 2,344,943 1,650,712 2,294,600 64,937 2,493,016 29,796 -57,732 -804,645 15,558,663 1,735,897 2,587,702 2,308,493 6,632,092 2,549,405 2,133,168 650 0 4,683,223 668,575 3,258,614 0 0 3,927,190 30,801,167 134,334,016 48,200,024 45,018,456 43,041,694 52,974,228 58,004,015 17,265,993 18,589,044 33,487,394 450,914,865 47,124,364 39,502,063 41,008,089 127,634,517 120,544,219 93,599,395 401,450 -4,074,801 210,470,263 34,174,710 44,331,873 7,581,156 3,781,810 89,869,549 878,889,194 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending June 30, 2014 Net of Fee Return Name Value $(000) Periods Ending 6/30/14 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 Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Voya Investment Mgmt R1000G 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 878,889 450,915 270,594 45,018 43,042 48,200 134,334 110,978 52,974 58,004 69,342 17,266 33,487 18,589 127,635 47,124 41,008 39,502 210,470 3.61 4.51 3.57 5.24 5.39 5.12 3.81 5.10 5.63 5.10 5.11 5.10 5.95 5.13 2.36 4.97 0.12 4.37 4.49 5.62 -1.19 2.05 0.17 2.05 -2.35 1.72 -0.31 2.38 5.48 4.34 3.82 4.34 5.97 6.71 7.01 4.34 2.20 2.04 17.60 16.53 24.56 24.62 24.67 25.37 23.87 23.82 21.56 23.82 23.87 23.82 26.28 26.93 26.62 26.85 27.02 26.05 25.53 27.75 20.57 23.64 21.11 23.64 17.89 24.73 25.18 22.54 20.73 24.09 21.88 24.09 15.67 14.68 25.00 24.09 5.69 4.37 10.36 10.38 16.03 16.58 15.53 16.63 16.76 16.92 16.58 16.26 17.20 16.08 16.12 14.54 18.02 17.55 16.11 14.57 15.96 15.22 15.88 14.48 16.72 14.64 4.76 8.59 6.66 8.59 1.14 -0.06 6.89 8.59 4.38 3.67 14.86 14.07 20.51 18.83 18.83 19.25 19.27 19.23 19.71 19.24 23.53 22.07 23.26 21.16 23.63 22.97 21.36 20.21 21.63 20.23 23.59 19.88 12.02 12.27 14.37 12.27 10.44 9.58 13.75 12.27 6.00 4.85 6.93 5.83 7.62 6.16 6.50 6.45 4.88 4.80 8.89 7.98 9.58 7.66 11.26 7.89 9.00 7.13 7.98 6.73 12.41 5.68 6.78 5.45 1.81 1.45 6.14 5.35 8.05 8.11 9.16 7.78 8.06 8.19 9.63 8.20 10.74 10.43 12.39 9.83 9.92 8.70 12.81 8.40 9.50 8.23 7.83 7.42 5.57 4.93 6.07 6.56 6.00 4.35 4.47 4.80 5.70 3.07 9.00 9.11 5.64 5.60 9.52 9.66 11.49 10.58 10.60 10.61 23.88 23.44 20.36 23.44 4.88 4.80 11.79 10.02 13.01 12.17 10.56 8.17 9.46 7.48 10.50 9.84 13.08 9.89 20.05 18.80 10.22 9.74 6.27 6.30 4.91 2.21 1.61 0.73 3.03 2.21 6.68 6.89 12/31/87 12/31/87 12/31/87 12/31/87 3/31/88 3/31/88 1/31/13 1/31/13 1/31/13 1/31/13 6/30/07 6/30/07 12/31/87 12/31/87 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, 2014 Net of Fee Return Name Value $(000) Periods Ending 6/30/14 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 120,544 -4,075 401 93,599 89,870 3,782 7,581 34,175 44,332 2.16 2.04 0.00 0.01 0.06 0.01 2.33 2.04 4.56 5.81 0.00 1.08 0.00 1.08 2.35 2.93 7.03 7.22 6.55 4.37 0.00 0.04 4.21 0.04 4.85 4.37 12.41 13.58 12.00 9.94 7.71 9.94 12.46 12.74 13.41 13.77 4.96 3.67 -0.00 0.05 3.87 0.05 3.81 3.67 9.75 12.16 4.72 6.73 9.28 12.45 10.71 11.55 6.63 4.85 -0.00 0.08 10.23 0.08 5.26 4.85 22.52 23.52 23.62 24.07 6.43 5.35 -0.00 0.64 8.11 0.64 5.74 5.35 5.88 4.93 -0.00 1.54 6.79 1.54 -0.00 2.07 5.50 4.60 0.69 3.55 6.25 1.49 5.06 4.73 4.67 5.58 8.17 9.56 4.72 6.73 10.59 13.81 5.43 5.90 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, 2014 Net of Fee Return Name Value $(000) Calendar Years YTD 2013 2012 2011 2010 2009 Total Fund Policy Index Domestic Equity Comp S&P 500 Large Cap Equity Comp R1000 Eagle Capital Management Russell 1000 Value Manning and Napier Russell 1000 Value NTGI-QM R1000V R1000V Voya Investment Mgmt R1000G 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 878,889 450,915 270,594 45,018 43,042 48,200 134,334 110,978 52,974 58,004 69,342 17,266 33,487 18,589 127,635 47,124 41,008 39,502 210,470 5.77 6.97 5.15 7.14 6.56 7.28 5.60 8.28 7.69 8.28 8.29 8.28 5.93 6.31 5.68 8.67 2.92 6.51 8.33 11.13 -0.79 3.19 -0.79 3.19 -3.28 2.21 4.02 4.20 6.45 5.14 3.77 5.14 6.91 6.32 9.33 5.14 4.46 3.93 17.83 14.62 35.15 32.41 32.23 33.11 32.94 32.54 31.57 33.49 37.36 34.76 39.21 35.76 34.92 33.45 42.51 38.82 42.43 37.88 43.50 43.29 40.72 34.50 10.23 23.29 15.81 23.29 1.22 -2.27 14.10 23.29 -0.75 -2.02 13.93 13.17 18.37 15.98 17.02 16.42 18.09 17.50 18.95 15.26 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 -0.77 0.39 3.04 2.63 -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 15.75 15.51 17.10 16.72 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 20.35 19.69 24.43 37.21 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 23 City of Clearwater Employees Pension Fund Executive Summary Table June 30, 2014 Net of Fee Return Name Value $(000) Calendar Years YTD 2013 2012 2011 2010 2009 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 120,544 -4,075 401 93,599 89,870 3,782 7,581 34,175 44,332 4.52 3.93 0.00 0.02 2.00 0.02 4.61 3.93 11.47 13.77 0.42 2.72 0.99 2.72 5.29 5.52 18.38 17.93 0.65 -2.02 0.00 0.05 2.56 0.05 -2.46 -2.02 6.29 6.02 8.91 9.68 15.16 9.68 11.83 13.94 1.60 2.15 7.85 4.22 -0.00 0.07 6.93 0.07 5.07 4.22 11.69 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 24 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 6/14 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 4.56 4.00 3.57 3.18 2.13 3.61 48 4.51 5 19.14 17.87 16.55 15.03 8.67 17.60 28 16.53 50 16.74 15.47 14.45 13.26 3.68 15.20 34 13.88 65 11.42 10.53 9.79 8.86 5.64 10.36 27 10.38 27 14.39 13.25 12.41 11.45 5.57 13.79 13 13.32 23 14.45 13.26 12.41 11.19 6.16 14.86 3 14.07 7 8.87 7.72 6.92 6.08 4.22 9.15 2 7.88 23 7.22 5.98 5.33 4.74 3.57 6.93 6 5.83 31 8.07 7.13 6.52 5.95 4.89 7.91 5 7.27 20 8.20 7.30 6.72 6.34 5.52 8.09 8 7.66 16 8.39 7.53 6.98 6.51 5.64 8.05 10 8.11 10 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% T 1 T 1 T 1 T1 T1 T 1 T 1 T 1 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 7.53 6.32 5.54 4.82 3.54 5.77 41 6.97 11 22.01 19.03 16.18 14.00 4.70 17.83 35 14.62 69 15.01 13.61 12.46 11.25 4.88 13.93 19 13.17 32 5.13 2.30 1.09 -0.04 -3.03 -0.36 78 1.81 33 16.38 14.02 12.67 11.19 5.64 17.73 2 13.96 27 27.82 21.87 18.82 14.98 4.37 30.28 2 26.00 7 -0.27 -20.32 -24.77 -27.22 -30.39 -27.10 73 -27.73 79 11.17 9.16 7.93 6.61 4.77 7.20 63 6.69 73 16.44 14.71 12.96 10.63 4.85 11.76 62 16.59 4 10.63 8.40 7.00 5.46 3.64 6.71 53 8.25 28 14.30 12.09 10.58 8.73 5.64 9.90 61 13.48 8 -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% T1 T 1 T1 T1 T 1 T 1 T1 T1 T 1 T1 T 1 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2014 -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 Incept 12/31/87 Total Fund Policy Index Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Total Fund Policy Index Rank Voya 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 3.61 4.51 48 5.95 5.13 12 5.11 5.10 38 3.81 5.10 79 5.63 5.10 23 0.12 4.37 95 4.49 5.62 82 5.77 6.97 41 5.93 6.31 30 8.29 8.28 34 5.60 8.28 84 7.69 8.28 50 2.92 6.51 83 8.33 11.13 61 17.60 16.53 28 26.28 26.93 61 23.87 23.82 50 23.87 23.82 50 21.56 23.82 76 27.02 26.05 43 25.53 27.75 41 10.36 10.38 27 16.58 16.26 35 16.76 16.92 45 16.12 14.54 29 18.02 17.55 26 14.87 14.07 3 19.71 19.24 36 19.27 19.23 44 23.26 21.16 25 23.63 22.97 34 9.52 9.66 11.79 10.02 4.88 4.80 85 23.88 23.44 20.36 23.44 10.56 8.17 9.46 7.48 12/31/87 12/31/87 6/30/07 1/31/13 1/31/13 7/31/01 2/28/07 $878,889,194 $134,334,016 $48,200,024 $45,018,456 $43,041,694 $52,974,228 $58,004,015 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2014 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 0.17 2.05 95 -0.31 2.38 97 -2.35 1.72 86 3.82 4.34 62 7.01 4.34 14 5.97 6.71 72 2.16 2.04 45 2.33 2.04 36 0.06 0.01 0.00 0.01 -0.79 3.19 98 4.02 4.20 59 -3.28 2.21 83 3.77 5.14 73 9.33 5.14 9 6.91 6.32 51 4.52 3.93 36 4.61 3.93 35 2.00 0.02 0.00 0.02 21.11 23.64 93 25.18 22.54 60 17.89 24.73 81 21.88 24.09 50 25.00 24.09 26 15.67 14.68 39 6.55 4.37 30 4.85 4.37 52 4.21 0.04 0.00 0.04 15.96 15.22 55 16.72 14.64 45 15.88 14.48 42 6.66 8.59 67 6.89 8.59 66 1.14 -0.06 56 4.96 3.67 38 3.81 3.67 62 3.87 0.05 -0.00 0.05 21.63 20.23 52 23.59 19.88 15 14.37 12.27 37 13.75 12.27 46 10.58 9.58 61 6.63 4.85 37 5.26 4.85 61 10.81 0.08 -0.00 0.08 13.08 9.89 10.22 9.74 20.05 18.80 4.91 2.21 3.03 2.21 1.71 0.73 5.50 4.60 5.06 4.73 6.50 1.49 0.69 3.55 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 $17,265,993 $18,589,044 $33,487,394 $47,124,364 $39,502,063 $41,008,089 $120,544,219 $93,599,395 $401,450 $-4,074,801 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund June 30, 2014 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 2.35 2.93 68 7.03 7.22 19 0.00 1.08 91 0.00 1.08 91 5.29 5.52 64 18.38 17.93 3 0.99 2.72 88 0.42 2.72 90 12.46 12.74 54 13.41 13.77 40 7.71 9.94 78 12.00 9.94 56 9.28 12.45 67 10.71 11.55 49 4.72 6.73 84 23.62 24.07 8 10.59 13.81 5.43 5.90 4.72 6.73 8.28 9.56 9/30/10 4/30/08 6/30/11 5/31/12 $34,174,710 $44,331,873 $7,581,156 $3,781,810 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 6/30/14 Apple Inc Microsoft Corp Oracle Corp Pepsico Inc Home Depot Inc Google Inc Aon Plc Comcast Corp New Boeing Co Berkshire Hathaway I GICS Sector % Port Information Technology Information Technology Information Technology Consumer Staples Consumer Discretionary Information Technology Financials Consumer Discretionary Industrials Financials 2.31 2.28 1.60 1.46 0.93 0.93 0.88 0.85 0.81 0.78 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.25 3.82 14.45 17.58 8.91 13.81 12.13 21.19 0.46 1.40 -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 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 3.57 5.24 435,358 -2 15,559 450,915 5.15 7.14 428,843 -6 22,077 450,915 24.56 24.62 369,463 -8,013 89,466 450,915 16.03 16.58 308,476 -23,722 166,161 450,915 20.51 18.83 193,740 -28,857 286,032 450,915 9.16 7.78 278,906 -28,857 200,867 450,915 11.49 10.58 32,236 -28,857 447,537 450,915 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 6/30/14 Cash & Equiv $10,057 2.23% Domestic Equity $440,858 97.77% Periods from 12/87 to 6/14 Alpha Beta R-Squared 0.12 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 11.49 10.58 3.68 17.61 15.69 1.27 0.44 0.44 0.00 0.22 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 6/14 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 6.85 5.13 4.12 2.24 -1.35 3.57 59 5.24 18 32.00 26.96 24.59 21.39 8.04 24.56 51 24.62 49 29.75 26.12 23.31 21.15 6.99 23.64 46 22.59 59 19.34 17.08 16.11 13.90 4.48 16.03 51 16.58 37 24.23 21.41 20.17 18.80 8.89 20.75 36 19.96 56 24.76 21.46 19.52 18.43 10.51 20.51 36 18.83 66 15.19 12.22 10.60 9.55 4.02 11.21 39 9.76 70 11.16 8.57 7.13 6.01 2.87 7.62 41 6.16 71 12.74 9.96 8.62 7.73 5.93 8.92 44 7.86 71 12.66 10.28 8.94 8.00 6.30 9.31 42 7.95 77 12.40 10.37 8.99 8.00 6.26 9.16 47 7.78 83 -5% 0% 5% 10% 15% 20% 25% 30% 35% E 1 E1 E1 E1 E1 E 1 E 1 E 1 E1 E1 E1 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 10.22 7.29 6.07 3.33 -2.07 5.15 59 7.14 29 45.47 37.98 33.31 30.03 4.08 35.15 38 32.41 60 22.65 17.93 15.94 12.26 2.09 18.37 21 15.98 49 8.04 2.16 -0.13 -4.13 -11.73 -0.21 50 2.12 27 33.10 25.24 17.01 13.78 5.48 22.53 32 15.05 66 54.28 37.05 28.94 24.29 9.06 32.14 40 26.45 65 -16.83 -33.45 -37.00 -40.97 -49.09 -37.76 57 -36.99 49 22.29 10.35 5.42 0.40 -7.62 7.18 36 5.52 47 23.13 17.58 14.82 10.21 1.90 13.01 63 15.81 39 16.04 10.54 7.08 4.74 -0.03 8.12 42 4.89 72 25.46 18.30 13.09 10.25 3.81 13.18 49 10.87 69 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% E1 E1 E1 E1 E 1 E 1 E1 E1 E1 E1 E1 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 6/30/14 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 1.00 0.25 1.52 9.15 24.56 24.56 7.47 0.91 0.49 0.80 3.28 26.87 4.54 -0.02 0 4 1.80 10.52 24.62 24.62 7.20 3.41 2 10 1.02 1.12 0.42 -16.27 14.43 2.19 35.15 16.55 1.08 -0.40 0.97 0.96 14.75 3.30 -0.09 3 9 -13.86 12.58 5.44 32.41 15.00 1.10 3 17 1.07 1.00 0.60 -16.27 16.83 -0.21 36.09 16.24 1.05 0.18 0.97 1.26 19.47 2.93 0.54 4 16 -13.86 15.60 1.15 32.41 15.26 1.23 32 74 1.08 1.05 0.54 -23.59 22.08 -37.76 55.86 17.61 1.09 0.12 0.94 0.44 7.19 4.67 0.22 29 77 -21.93 21.32 -38.07 49.75 15.69 0.44 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 8.0 9.8 11.6 13.4 15.2 17.0 18.8 20.6 22.4 24.2 26.0 8.0 9.8 11.6 13.4 15.2 17.0 18.8 20.5 22.3 24.1 25.9 ES Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp S Standard & Poors 500 Median 16.03 51 16.55 47 16.5837 15.00 20 16.11 17.10 An n u a l i z e d R a t e o f R e t u r n 10.0 11.4 12.8 14.2 15.6 17.0 18.4 19.8 21.2 22.6 24.0 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 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp S Standard & Poors 500 Median 20.51 36 16.24 42 18.8366 15.26 19 19.52 17.06 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 6/30/14 Apple Inc Microsoft Corp Oracle Corp Pepsico Inc Home Depot Inc Google Inc Aon Plc Comcast Corp New Boeing Co Berkshire Hathaway I GICS Sector % Port Information Technology Information Technology Information Technology Consumer Staples Consumer Discretionary Information Technology Financials Consumer Discretionary Industrials Financials 4.15 4.10 2.88 2.63 1.68 1.67 1.58 1.53 1.46 1.41 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.12 4.30 10.10 17.14 14.19 13.85 8.85 23.82 0.62 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 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 5.39 5.12 256,760 0 13,833 270,594 6.56 7.28 253,931 -2 16,665 270,594 24.67 25.37 217,047 -5 53,552 270,594 15.53 16.63 172,403 1,303 96,887 270,594 18.83 19.25 84,965 35,173 150,457 270,594 8.06 8.19 146,700 35,173 88,722 270,594 10.60 10.61 18,032 35,173 217,389 270,594 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 6/30/14 Cash & Equiv $4,244 1.57% Domestic Equity $266,351 98.43% Periods from 3/88 to 6/14 Alpha Beta R-Squared 0.03 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 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 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 10.60 10.61 3.66 16.16 16.14 1.27 0.43 0.43 0.00 -0.02 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 6/14 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 6.30 5.24 5.10 4.56 3.04 5.39 17 5.12 48 28.23 25.69 24.81 24.22 21.17 24.67 53 25.37 33 27.57 24.46 23.17 22.51 20.31 22.87 54 23.29 41 18.72 17.20 16.58 16.12 11.99 15.53 80 16.63 40 22.20 20.81 20.06 19.63 16.82 19.41 76 20.29 38 21.68 19.70 18.91 18.43 16.26 18.83 63 19.25 41 12.46 10.79 9.96 9.66 7.24 9.38 83 9.97 49 8.60 7.16 6.27 5.87 4.76 6.50 41 6.45 42 10.46 8.74 7.98 7.66 6.42 7.81 70 8.11 45 10.43 8.73 8.16 7.95 6.75 8.04 61 8.22 48 10.21 8.70 8.25 7.84 6.77 8.06 55 8.19 53 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% L1 L1 L1 L 1 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 8.79 7.49 7.11 6.88 4.66 6.56 81 7.28 32 38.31 33.55 32.45 31.87 21.08 32.23 69 33.11 34 22.74 17.03 16.06 14.79 10.20 17.02 25 16.42 37 6.19 2.47 1.91 0.76 -6.03 -0.90 81 1.51 60 21.67 16.86 15.19 14.50 11.62 16.87 24 16.10 32 40.91 31.92 27.14 26.43 22.04 24.59 88 28.42 42 -27.25 -34.95 -36.82 -37.54 -42.97 -35.23 26 -37.60 77 10.79 6.52 5.55 4.65 -1.39 7.76 14 5.77 39 20.80 17.97 15.81 15.21 11.06 11.52 94 15.46 72 11.88 9.07 5.83 4.89 2.60 8.63 27 6.27 42 19.91 14.21 11.37 10.84 8.27 11.24 54 11.39 48 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% L1 L1 L1 L1 L1 L 1 L1 L1 L 1 L1 L1 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 6/30/14 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 1.12 9.85 24.67 24.67 7.21 1.01 -0.23 0.98 3.41 24.27 1.30 -0.44 0 4 2.06 10.23 25.37 25.37 6.75 3.75 2 10 0.98 1.08 0.33 -15.13 14.01 2.13 32.23 15.90 1.02 -0.32 0.99 0.97 15.14 1.61 -0.58 2 10 -14.68 12.90 4.38 33.11 15.48 1.07 4 16 1.00 1.04 0.50 -15.13 16.91 -0.90 32.23 16.06 1.02 -0.18 0.99 1.17 18.34 1.34 -0.24 3 17 -14.68 16.07 0.91 33.11 15.67 1.22 32 73 0.99 0.98 0.50 -20.96 20.12 -37.57 49.31 16.16 0.98 0.03 0.96 0.43 7.07 3.05 -0.02 28 77 -22.48 21.88 -38.26 51.57 16.14 0.43 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 12.5 13.1 13.7 14.3 14.9 15.5 16.1 16.7 17.3 17.9 18.5 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 L 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp 1 R1000 Median 15.53 80 15.90 67 16.6340 15.48 52 16.58 15.47 An n u a l i z e d R a t e o f R e t u r n 13.0 13.55 14.1 14.65 15.2 15.75 16.3 16.85 17.4 17.95 18.5 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 L1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp 1 R1000 Median 18.83 63 16.06 67 19.2541 15.67 54 18.91 15.64 42 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 6/30/14 Apple Inc Microsoft Corp Pepsico Inc Comcast Corp New Halliburton Co Oracle Corp Home Depot Inc Google Inc McKesson Hboc Inc Cvs Corp GICS Sector % Port Information Technology Information Technology Consumer Staples Consumer Discretionary Energy Information Technology Consumer Discretionary Information Technology Health Care Consumer Staples 5.48 3.51 2.66 2.52 2.24 2.21 2.19 2.17 2.14 2.12 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 5.98 4.17 11.88 21.30 9.95 13.67 5.47 27.58 0.00 0.00 -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 12/31/87 Voya Investment Mgmt R1000G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Voya Investment Mgmt R1000G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 5.95 5.13 126,792 -1 7,543 134,334 5.93 6.31 126,821 -2 7,515 134,334 26.28 26.93 106,383 -4 27,955 134,334 16.58 16.26 96,465 -13,009 50,879 134,334 19.71 19.24 42,933 10,377 81,024 134,334 9.63 8.20 48,373 10,377 75,584 134,334 11.79 10.02 17,469 10,377 106,488 134,334 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 43 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 6/30/14 Cash & Equiv $1,901 1.41% Domestic Equity $132,433 98.59% Periods from 12/87 to 6/14 Alpha Beta R-Squared 0.61 0.85 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 Voya Investment Mgmt 1 R1000G T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.79 10.02 3.68 16.20 18.39 1.27 0.50 0.34 0.00 0.21 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 6/14 High 1st Qt Median 3rd Qt Low i Voya 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 7.25 5.24 4.52 3.26 1.50 5.95 12 5.13 29 33.53 29.96 26.90 24.14 19.56 26.28 61 26.93 48 28.50 25.33 22.49 20.86 17.85 21.72 66 21.89 62 19.99 17.50 15.67 14.47 12.43 16.58 35 16.26 41 26.11 21.76 20.59 19.25 17.32 20.94 38 20.69 45 26.19 20.23 19.18 18.43 15.83 19.71 36 19.24 48 15.34 11.52 10.43 8.87 7.25 10.68 42 10.50 48 13.04 9.09 7.92 7.13 5.88 8.89 27 7.98 48 12.82 10.16 9.13 8.56 7.51 9.84 34 9.31 44 11.74 10.05 9.23 8.62 7.68 9.79 33 8.95 59 11.15 10.07 8.98 8.36 7.43 9.63 35 8.20 82 0% 5% 10% 15% 20% 25% 30% 35% i1 i1 i1 i1 i1 i1 i1 i1 i1 i1 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 Voya Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 10.39 6.28 4.54 2.88 1.36 5.93 30 6.31 24 44.45 37.24 33.75 31.49 25.20 31.57 73 33.49 53 23.91 18.42 15.79 14.10 11.48 18.95 19 15.26 58 9.45 3.08 0.67 -1.77 -7.21 3.04 26 2.63 33 27.34 19.10 17.08 13.70 9.47 17.10 49 16.72 56 70.57 42.05 35.27 29.76 23.01 24.43 92 37.21 39 -28.77 -35.21 -38.68 -41.97 -48.87 -33.18 15 -38.43 48 25.02 20.09 13.39 9.34 4.19 17.10 37 11.82 58 27.25 13.75 9.47 6.30 -5.06 7.14 69 9.09 58 14.94 11.40 8.55 5.55 3.48 12.02 24 5.27 81 21.39 14.88 11.42 7.87 4.83 10.27 61 6.30 83 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% i1 i1 i1 i1 i1 i 1 i 1 i 1 i1 i 1 i1 46 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Large Growth Portfolios High 1st Qt Median 3rd Qt Low i Voya Investment Mgmt Net Ret Rank 1 R1000G Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 18.82 17.08 15.65 14.49 13.05 16.58 32 16.26 39 17.55 15.62 14.16 12.88 11.05 14.88 35 14.63 41 19.46 17.65 16.06 14.96 13.05 17.27 28 16.45 42 19.34 17.58 16.42 15.16 13.33 17.58 25 16.94 36 20.47 18.96 17.99 16.79 15.37 19.21 17 18.68 32 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% i 1 i 1 i 1 i 1 i 1 Voya Investment Mgmt Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 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 0.2 -0.3 -1.1 0.8 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R1000G 47 City of Clearwater Employees Pension Fund Risk Measure Summary Voya Investment Mgmt Quarterly Periods Ending 6/30/14 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 0.98 0.50 -0.02 10.10 26.28 26.28 8.81 1.04 -0.34 0.98 2.98 25.33 1.66 -0.31 0 4 1.12 10.44 26.93 26.93 8.05 3.34 4 8 1.02 1.01 0.42 -12.86 17.02 6.94 32.37 16.07 1.04 -0.05 0.98 1.03 15.94 2.14 0.16 3 9 -13.14 14.69 5.77 33.49 15.38 1.05 5 15 1.02 0.99 0.50 -12.86 17.02 3.04 35.01 15.84 1.01 0.07 0.99 1.24 19.45 1.80 0.24 4 16 -13.14 14.69 2.63 35.01 15.62 1.23 31 75 0.95 0.79 0.53 -18.51 23.26 -33.74 44.38 16.20 0.85 0.61 0.93 0.50 9.59 5.22 0.21 33 73 -22.79 26.75 -45.64 49.75 18.39 0.34 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 10.0 11.4 12.8 14.2 15.6 17.0 18.4 19.8 21.2 22.6 24.0 11.0 11.9 12.7 13.6 14.5 15.4 16.3 17.2 18.1 19.0 19.9 i1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i Voya Investment Mgmt 1 R1000G Median 16.58 35 16.07 37 16.2641 15.38 22 15.67 16.95 An n u a l i z e d R a t e o f R e t u r n 11.0 12.2 13.4 14.6 15.8 17.0 18.2 19.4 20.6 21.8 23.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 i1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i Voya Investment Mgmt 1 R1000G Median 19.71 36 15.84 33 19.2448 15.62 28 19.18 16.83 49 City of Clearwater Employees Pension Fund Equity Summary Statistics Voya Investment Mgmt Period Ending 6/14 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 63 132,433,476 114,929,699 51,490,358 1.28 23.28 23.69 1.00 4.23 46.62 19.75 674 110,943,643 8,680,373 1.49 24.67 23.18 0.98 4.48 50.71 16.13 Ten Largest Holdings Apple Inc Microsoft Corp Pepsico Inc Comcast Corp New Halliburton Co Oracle Corp Home Depot Inc Google Inc McKesson Hboc Inc Cvs Corp Market Value % of Portfolio Quarterly Ret 7,253,187 4,648,716 3,521,783 3,332,991 2,958,987 2,928,657 2,897,558 2,874,238 2,826,668 2,804,518 5.48 3.51 2.66 2.52 2.24 2.21 2.19 2.17 2.14 2.12 21.87 2.44 7.80 7.77 20.86 -0.63 2.91 4.82 5.59 1.06 Ten Best Performers Allergan Inc Anadarko Pete Corp Celgene Corp Apple Inc Halliburton Co Eog Res Inc Gilead Sciences Inc Delta Air Lines Inc Facebook Inc Lauder Estee Cos Inc Quarterly Ret 36.40 29.49 23.04 21.87 20.86 19.29 17.01 11.92 11.70 11.33 Ten Worst Performers Vmware Inc Pentair Plc Ulta Salon Cosmetcs Bristol Myers Squibb Michael Kors Hldgs L Pall Corp Amgen E M C Corp Mass Cognizant Technology Visa Inc Quarterly Ret -10.38 -8.80 -6.23 -5.97 -4.95 -4.25 -3.50 -3.49 -3.36 -2.20 50 City of Clearwater Employees Pension Fund Equity Contribution to Return Voya Investment Mgmt Period Ending 6/14 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 63 132,433,476 114,929,699 51,490,358 1.28 23.28 23.69 1.00 4.23 46.62 19.75 674 110,943,643 8,680,373 1.49 24.67 23.18 0.98 4.48 50.71 16.13 Ten Best Contributors Apple Inc Allergan Inc Halliburton Co Anadarko Pete Corp Gilead Sciences Inc Celgene Corp Eog Res Inc Lyondellbasell Indus Pepsico Inc Lauder Estee Cos Inc Market Value % of Portfolio Quarterly Ret 7,253,187 2,254,010 2,958,987 1,869,748 2,203,748 1,602,521 1,893,132 2,637,527 3,521,783 2,359,240 5.48 1.70 2.24 1.41 1.66 1.21 1.43 1.99 2.66 1.78 21.87 36.40 20.86 29.49 17.01 23.04 19.29 10.63 7.80 11.33 Ten Worst Contributors Vmware Inc Pentair Plc Ulta Salon Cosmetcs Bristol Myers Squibb Michael Kors Hldgs L Cognizant Technology E M C Corp Mass Pall Corp Amgen Visa Inc Market Value % of Portfolio Quarterly Ret 1,622,536 1,248,397 1,563,111 1,535,827 1,451,201 1,984,279 1,559,091 1,176,589 1,330,479 1,755,214 1.23 0.94 1.18 1.16 1.10 1.50 1.18 0.89 1.01 1.33 -10.38 -8.80 -6.23 -5.97 -4.95 -3.36 -3.49 -4.25 -3.50 -2.20 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Voya Investment Mgmt Quarter Ending 6/14 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 5.31 4.49 12.49 22.93 10.46 12.77 4.47 27.07 0.00 0.00 100.00 4.79 4.55 12.34 19.22 11.71 12.40 5.55 27.06 2.26 0.13 100.00 19.82 8.90 4.94 2.19 4.31 12.43 5.51 5.10 6.24 17.71 5.41 3.54 2.41 6.31 5.87 5.30 4.50 5.36 2.64 5.10 0.11 0.16 0.17 -0.05 -0.21 0.84 0.01 0.16 0.00 0.00 1.19 0.07 -0.00 -0.00 -0.10 -0.02 0.00 -0.00 -0.00 -0.01 0.00 -0.05 0.18 0.16 0.17 -0.15 -0.22 0.84 0.01 0.16 -0.01 0.00 1.14 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 -0.19% [ Actual Return 6.05% ] - [ Buy Hold Return 6.24% ] 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Voya Investment Mgmt Quarter Ending 6/14 % Allocation Energy 5.31 4.79 Materials 4.49 4.55 Industrials 12.49 12.34 Con. Discretionary 22.93 19.22 Consumer Staples 10.46 11.71 Health Care 12.77 12.40 Financials 4.47 5.55 Infomation Tech. 27.07 27.06 Telecom. Services 0.00 2.26 Utilities 0.00 0.13 Voya Investment Mgmt R1000G % Return 19.82 17.71 8.90 5.41 4.94 3.54 2.19 2.41 4.31 6.31 12.43 5.87 5.51 5.30 5.10 4.50 5.36 2.64 % Variance 0.18 0.16 0.17 -0.15 -0.22 0.84 0.01 0.16 -0.01 0.00 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 6/30/14 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 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 5.11 5.10 45,855 0 2,345 48,200 8.29 8.28 44,511 0 3,689 48,200 23.87 23.82 38,913 0 9,287 48,200 16.76 16.92 45,400 -25,811 28,611 48,200 19.27 19.23 29,944 -25,811 44,067 48,200 4.88 4.80 26,197 -25,811 47,814 48,200 Portfolio Performance (%) 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 6/30/14 Cash & Equiv $0 0.00% Domestic Equity $48,200 100.00% Periods from 6/07 to 6/14 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 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 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 4.88 4.80 0.72 20.45 20.52 0.70 0.20 0.20 0.00 0.09 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 6/14 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 Last 7 Years 6.55 5.45 4.74 3.94 2.69 5.11 38 5.10 39 29.35 25.53 23.91 21.62 17.56 23.87 50 23.82 51 30.82 27.26 24.86 22.26 17.46 25.04 47 24.57 54 19.01 17.57 16.64 15.37 12.71 16.76 45 16.92 43 22.24 20.72 19.89 19.02 16.41 19.73 60 19.81 58 21.67 20.36 19.14 18.12 15.74 19.27 44 19.23 48 12.61 11.17 10.27 9.52 7.94 9.41 81 9.36 83 9.56 6.58 6.02 5.03 4.12 4.88 85 4.80 87 0% 5% 10% 15% 20% 25% 30% 35% n 1 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 11.54 8.61 7.70 6.19 4.60 8.29 34 8.28 34 40.77 36.71 33.09 29.28 16.93 32.94 50 32.54 54 20.66 17.66 15.50 8.58 4.70 18.09 21 17.50 28 14.43 6.68 1.28 -0.79 -6.00 -0.77 74 0.39 63 23.53 17.03 14.52 11.85 9.74 15.75 37 15.51 43 44.12 30.66 23.94 20.36 14.39 20.35 76 19.69 82 -23.77 -33.03 -35.56 -38.13 -44.05 -36.86 66 -36.85 65 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% n 1 n 1 n 1 n 1 n 1 n 1 n 1 57 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Large Value Portfolios High 1st Qt Median 3rd Qt Low n NTGI-QM R1000V Net Ret Rank 1 R1000V Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 19.00 17.69 16.85 15.95 14.35 16.76 51 16.92 48 17.18 15.47 14.84 13.98 12.30 14.65 61 14.80 53 18.97 17.04 16.28 15.27 13.73 15.92 62 16.06 60 18.50 17.21 16.33 15.43 13.16 16.10 61 16.25 57 20.51 19.27 18.63 18.01 16.08 18.38 61 18.51 57 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% n 1 n 1 n 1 n 1 n 1 NTGI-QM R1000V Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -1.4% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 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 0.0 0.0 0.0 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 6/30/14 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 1.00 0.75 3.02 10.02 23.87 23.87 6.23 1.00 0.00 1.00 3.82 23.77 0.02 2.28 0 4 3.02 10.01 23.82 23.82 6.22 3.82 2 10 0.99 1.00 0.83 -16.15 12.60 1.81 32.94 15.75 0.99 0.02 1.00 1.06 16.93 0.92 -0.19 2 10 -16.21 13.11 3.00 32.54 15.95 1.06 4 16 1.00 1.00 0.90 -16.15 18.29 -1.78 32.94 16.01 0.99 0.04 1.00 1.20 19.31 0.72 0.02 4 16 -16.21 18.24 -1.90 32.54 16.12 1.19 11 17 1.00 1.00 0.86 -22.13 18.29 -42.31 54.33 20.45 1.00 0.02 1.00 0.20 4.17 0.61 0.09 11 17 -22.17 18.24 -42.42 53.57 20.52 0.20 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Value Portfolios An n u a l i z e d R a t e o f R e t u r n 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 n 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V 1 R1000V Median 16.76 45 15.75 37 16.9243 15.95 47 16.64 16.30 An n u a l i z e d R a t e o f R e t u r n 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 15.0 15.9 16.8 17.6 18.5 19.4 20.3 21.2 22.1 23.0 23.9 n1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V 1 R1000V Median 19.27 44 16.01 37 19.2348 16.12 46 19.14 16.18 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 6/30/14 Oracle Corp Berkshire Hathaway I Microsoft Corp Aon Plc Citigroup Inc Ecolab Inc Liberty Global Plc Coca Cola Co Unitedhealth Group I Noble Energy Inc GICS Sector % Port Information Technology Financials Information Technology Financials Financials Materials Consumer Discretionary Consumer Staples Health Care Energy 7.67 7.04 5.80 5.43 4.99 4.26 4.21 3.85 3.84 3.80 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 5.10 6.90 1.28 13.61 19.14 8.47 27.09 18.40 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 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 3.81 5.10 43,368 0 1,651 45,018 5.60 8.28 42,630 -1 2,389 45,018 16.34 19.12 38,696 -1 6,324 45,018 5.60 8.28 42,630 -1 2,389 45,018 23.88 23.44 33,239 -2 11,781 45,018 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 6/30/14 Cash & Equiv $1,318 2.93% Domestic Equity $43,701 97.07% Periods from 12/12 to 6/14 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 9.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 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 23.88 23.44 0.07 7.78 8.76 0.02 3.06 2.67 0.00 -0.63 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 6/14 High 1st Qt Median 3rd Qt Low E Eagle Capital Management Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr Last 2 Qtrs 6.55 5.45 4.74 3.94 2.69 3.81 79 5.10 39 11.54 8.61 7.70 6.19 4.60 5.60 84 8.28 34 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% E 1 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 6/30/14 YTD 11.54 8.61 7.70 6.19 4.60 5.60 84 8.28 34 4% 5% 6% 7% 8% 9% 10% 11% 12% E 1 64 City of Clearwater Employees Pension Fund Risk Measure Summary Eagle Capital Management Quarterly Periods Ending 6/30/14 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 1.00 0.50 1.73 10.17 23.87 23.87 7.28 1.01 -0.04 0.86 3.27 23.56 3.60 0.01 0 4 3.02 10.01 23.82 23.82 6.22 3.82 0 5 1.05 0.60 1.73 10.17 23.87 24.38 6.42 1.00 0.24 0.85 3.52 22.70 3.25 0.26 0 5 3.02 10.01 21.58 23.82 5.77 3.74 65 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 6/14 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 30 43,700,781 124,555,731 59,452,150 1.18 21.16 20.21 0.88 2.76 61.93 7.78 689 109,988,110 7,193,477 2.31 17.82 19.51 1.05 1.95 55.34 5.73 Ten Largest Holdings Oracle Corp Berkshire Hathaway I Microsoft Corp Aon Plc Citigroup Inc Ecolab Inc Liberty Global Plc Coca Cola Co Unitedhealth Group I Noble Energy Inc Market Value % of Portfolio Quarterly Ret 3,347,778 3,075,408 2,531,190 2,369,367 2,180,730 1,859,378 1,836,254 1,681,692 1,675,875 1,657,644 7.67 7.04 5.80 5.43 4.99 4.26 4.21 3.85 3.84 3.80 -0.63 1.27 2.44 7.21 -1.03 3.36 3.93 10.40 0.18 9.31 Ten Best Performers Anadarko Pete Corp Berkley W R Corp Coca Cola Co Twenty First Centy F Comcast Corp New Noble Energy Inc Mondelez Intl Inc Pepsico Inc Aon Plc 3m Co Quarterly Ret 29.49 11.54 10.40 9.99 9.83 9.31 9.26 7.80 7.21 6.23 Ten Worst Performers Valeant Pharmaceutic Altera Corp Thermo Fisher Scient Wal Mart Stores Inc Citigroup Inc Oracle Corp Loews Corp Unitedhealth Group I Berkshire Hathaway I Praxair Inc Quarterly Ret -4.33 -3.64 -1.74 -1.17 -1.03 -0.63 0.05 0.18 1.27 1.92 66 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 6/14 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 30 43,700,781 124,555,731 59,452,150 1.18 21.16 20.21 0.88 2.76 61.93 7.78 689 109,988,110 7,193,477 2.31 17.82 19.51 1.05 1.95 55.34 5.73 Ten Best Contributors Coca Cola Co Aon Plc Anadarko Pete Corp Comcast Corp New Noble Energy Inc Twenty First Centy F Mondelez Intl Inc Berkley W R Corp Pepsico Inc Liberty Global Plc Market Value % of Portfolio Quarterly Ret 1,681,692 2,369,367 569,244 1,626,565 1,657,644 1,543,773 1,436,702 935,462 1,313,298 1,836,254 3.85 5.43 1.30 3.72 3.80 3.54 3.29 2.14 3.01 4.21 10.40 7.21 29.49 9.83 9.31 9.99 9.26 11.54 7.80 3.93 Ten Worst Contributors Valeant Pharmaceutic Altera Corp Citigroup Inc Oracle Corp Thermo Fisher Scient Wal Mart Stores Inc Loews Corp Unitedhealth Group I Goldman Sachs Group Praxair Inc Market Value % of Portfolio Quarterly Ret 819,780 650,012 2,180,730 3,347,778 1,203,600 1,433,837 871,398 1,675,875 770,224 1,155,708 1.88 1.49 4.99 7.67 2.76 3.28 2.00 3.84 1.76 2.65 -4.33 -3.64 -1.03 -0.63 -1.74 -1.17 0.05 0.18 2.54 1.92 67 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Eagle Capital Management Quarter Ending 6/14 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 4.67 7.56 1.26 13.85 18.92 6.92 26.78 20.05 0.00 0.00 100.00 14.54 2.93 10.14 6.42 5.84 13.55 29.07 8.98 2.46 6.08 100.00 13.85 2.74 6.23 7.04 5.97 -0.63 3.47 1.15 4.15 10.41 5.64 4.06 6.14 1.79 3.41 1.88 11.09 2.90 7.85 5.14 0.16 -0.22 0.03 0.12 0.79 -0.28 0.43 -1.99 0.00 0.00 -0.96 -0.52 0.02 0.10 0.07 -0.44 0.12 0.07 0.66 0.06 -0.16 -0.03 -0.36 -0.20 0.12 0.20 0.35 -0.16 0.50 -1.33 0.06 -0.16 -0.99 Index - Russell 1000 Value Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.28% [ Actual Return 3.88% ] - [ Buy Hold Return 4.15% ] 68 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Eagle Capital Management Quarter Ending 6/14 % Allocation Energy 4.67 14.54 Materials 7.56 2.93 Industrials 1.26 10.14 Con. Discretionary 13.85 6.42 Consumer Staples 18.92 5.84 Health Care 6.92 13.55 Financials 26.78 29.07 Infomation Tech. 20.05 8.98 Telecom. Services 0.00 2.46 Utilities 0.00 6.08 Eagle Capital Management Russell 1000 Value % Return 13.85 10.41 2.74 5.64 6.23 4.06 7.04 6.14 5.97 1.79 -0.63 3.41 3.47 1.88 1.15 11.09 2.90 7.85 % Variance -0.36 -0.20 0.12 0.20 0.35 -0.16 0.50 -1.33 0.06 -0.16 69 City of Clearwater Employees Pension Fund Manning and Napier as of 6/30/14 Apple Inc Microsoft Corp Exxon Mobil Corp Johnson & Johnson Wal Mart Stores Inc Novartis A G Procter & Gamble Co Royal Dutch Shell Pl Pfizer Inc Coca Cola Co GICS Sector % Port Information Technology Information Technology Energy Health Care Consumer Staples Health Care Consumer Staples Energy Health Care Consumer Staples 4.29 4.21 3.87 3.77 3.22 3.08 2.98 2.98 2.98 2.83 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 12.83 2.01 13.66 7.71 22.40 20.01 0.55 17.60 3.23 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 2 Qtr 3 Qtr YTD 1 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Net of Fee Returns Qtr 2 Qtr 3 Qtr YTD 1 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 5.63 5.10 40,746 2 2,295 43,042 7.69 8.28 39,969 1 3,072 43,042 16.91 19.12 36,815 0 6,227 43,042 7.69 8.28 39,969 1 3,072 43,042 21.56 23.82 35,408 0 7,634 43,042 20.36 23.44 33,104 -1 9,939 43,042 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 70 City of Clearwater Employees Pension Fund Manning and Napier as of 6/30/14 Cash & Equiv $1,025 2.38% Domestic Equity $42,016 97.62% Periods from 12/12 to 6/14 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 9.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 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 20.36 23.44 0.07 8.50 8.76 0.02 2.39 2.67 0.00 -1.25 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 71 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 High 1st Qt Median 3rd Qt Low M Manning and Napier Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs 6/14 YTD Last Year 6.55 5.45 4.74 3.94 2.69 5.63 23 5.10 39 11.54 8.61 7.70 6.19 4.60 7.69 50 8.28 34 22.65 19.43 18.19 16.02 14.09 16.91 66 19.12 29 11.54 8.61 7.70 6.19 4.60 7.69 50 8.28 34 29.35 25.53 23.91 21.62 17.56 21.56 76 23.82 51 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% M 1 M 1 M 1 M 1 M 1 72 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 6/30/14 YTD 11.54 8.61 7.70 6.19 4.60 7.69 50 8.28 34 4% 5% 6% 7% 8% 9% 10% 11% 12% M 1 73 City of Clearwater Employees Pension Fund Risk Measure Summary Manning and Napier Quarterly Periods Ending 6/30/14 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 0.91 0.50 1.94 8.57 21.56 21.56 5.60 0.89 0.13 0.96 3.84 24.25 1.84 -1.06 0 4 3.02 10.01 23.82 23.82 6.22 3.82 0 5 0.86 0.40 1.83 8.57 17.19 21.56 5.63 0.90 -0.17 0.94 3.30 20.56 1.78 -1.49 0 5 3.02 10.01 21.58 23.82 5.77 3.74 74 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 6/14 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 94 42,016,406 158,769,235 39,535,063 2.91 17.26 18.10 0.81 3.07 47.36 9.83 689 109,988,110 7,193,477 2.31 17.82 19.51 1.05 1.95 55.34 5.73 Ten Largest Holdings Apple Inc Microsoft Corp Exxon Mobil Corp Johnson & Johnson Wal Mart Stores Inc Novartis A G Procter & Gamble Co Royal Dutch Shell Pl Pfizer Inc Coca Cola Co Market Value % of Portfolio Quarterly Ret 1,799,961 1,767,496 1,623,666 1,580,076 1,352,611 1,291,048 1,251,074 1,250,212 1,249,854 1,186,461 4.29 4.21 3.87 3.77 3.22 3.08 2.98 2.98 2.98 2.83 21.87 2.44 3.77 7.24 -1.17 6.48 -1.71 13.89 -6.77 10.40 Ten Best Performers Conocophillips Apple Inc Intel Corp Cnooc Ltd Sabesp Cia Saneame Symantec Corp Sk Telecom Ltd Reynolds American In Lorillard Inc Royal Dutch Shell Pl Quarterly Ret 22.93 21.87 20.75 20.64 18.83 15.48 14.93 14.25 13.92 13.89 Ten Worst Performers Abb Ltd Ericsson L M Tel Co Philips Elec(Kon) Pfizer Inc Kohls Corp Ca Inc Raytheon Co Conagra Foods Inc Siemens A G Ultrapar Participatc Quarterly Ret -7.83 -7.22 -6.97 -6.77 -6.58 -6.41 -6.01 -3.57 -2.19 -2.03 75 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 6/14 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 94 42,016,406 158,769,235 39,535,063 2.91 17.26 18.10 0.81 3.07 47.36 9.83 689 109,988,110 7,193,477 2.31 17.82 19.51 1.05 1.95 55.34 5.73 Ten Best Contributors Apple Inc Intel Corp Royal Dutch Shell Pl Conocophillips Coca Cola Co Johnson & Johnson Novartis A G Cisco Sys Inc Cnooc Ltd Pepsico Inc Market Value % of Portfolio Quarterly Ret 1,799,961 963,431 1,250,212 732,563 1,186,461 1,580,076 1,291,048 612,254 337,244 889,737 4.29 2.30 2.98 1.75 2.83 3.77 3.08 1.46 0.80 2.12 21.87 20.75 13.89 22.93 10.40 7.24 6.48 11.80 20.64 7.80 Ten Worst Contributors Pfizer Inc Abb Ltd Ericsson L M Tel Co Procter & Gamble Co Philips Elec(Kon) Siemens A G Wal Mart Stores Inc Raytheon Co Ca Inc Kohls Corp Market Value % of Portfolio Quarterly Ret 1,249,854 351,815 301,324 1,251,074 245,664 774,766 1,352,611 216,880 96,681 87,185 2.98 0.84 0.72 2.98 0.59 1.85 3.22 0.52 0.23 0.21 -6.77 -7.83 -7.22 -1.71 -6.97 -2.19 -1.17 -6.01 -6.41 -6.58 76 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Manning and Napier Quarter Ending 6/14 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 15.92 1.53 14.47 6.19 20.45 24.59 0.79 14.71 1.25 0.09 100.00 14.54 2.93 10.14 6.42 5.84 13.55 29.07 8.98 2.46 6.08 100.00 10.78 1.78 1.02 3.53 4.21 2.99 7.30 9.23 8.96 18.83 5.25 10.41 5.64 4.06 6.14 1.79 3.41 1.88 11.09 2.90 7.85 5.14 0.06 -0.06 -0.44 -0.16 0.49 -0.10 0.04 -0.27 0.08 0.01 -0.35 0.07 -0.01 -0.05 -0.00 -0.49 -0.19 0.92 0.34 0.03 -0.16 0.46 0.13 -0.07 -0.49 -0.16 0.00 -0.29 0.97 0.07 0.10 -0.15 0.11 Index - Russell 1000 Value Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect 0.51% [ Actual Return 5.76% ] - [ Buy Hold Return 5.25% ] 77 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Manning and Napier Quarter Ending 6/14 % Allocation Energy 15.92 14.54 Materials 1.53 2.93 Industrials 14.47 10.14 Con. Discretionary 6.19 6.42 Consumer Staples 20.45 5.84 Health Care 24.59 13.55 Financials 0.79 29.07 Infomation Tech. 14.71 8.98 Telecom. Services 1.25 2.46 Utilities 0.09 6.08 Manning and Napier Russell 1000 Value % Return 10.78 10.41 1.78 5.64 1.02 4.06 3.53 6.14 4.21 1.79 2.99 3.41 7.30 1.88 9.23 11.09 8.96 2.90 18.83 7.85 % Variance 0.13 -0.07 -0.49 -0.16 0.00 -0.29 0.97 0.07 0.10 -0.15 78 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 6/30/14 Ihs Inc Allstate Corp Brunswick Corp Regeneron Pharmaceut Ashland Inc New Computer Sciences Co Lincoln Natl Corp In Applied Materials In Hca Holdings Inc Carefusion Corp GICS Sector % Port Industrials Financials Consumer Discretionary Health Care Materials Information Technology Financials Information Technology Health Care Health Care 2.40 2.16 2.15 2.12 2.02 2.02 2.01 1.76 1.73 1.72 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 6.13 4.18 19.34 19.98 1.05 13.28 16.95 14.23 0.24 4.61 -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 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 2.36 4.97 108,422 -2 2,558 110,978 5.68 8.67 105,014 -3 5,967 110,978 26.62 26.85 94,900 -8,005 24,083 110,978 17.20 16.08 89,920 -23,017 44,075 110,978 23.53 22.07 50,334 -23,018 83,663 110,978 10.74 10.43 84,234 -23,018 49,763 110,978 13.01 12.17 15,585 -23,018 118,412 110,978 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 79 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 6/30/14 Cash & Equiv $4,153 3.74% Domestic Equity $106,826 96.26% Periods from 3/88 to 6/14 Alpha Beta R-Squared 0.05 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 14.0 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 13.01 12.17 3.66 22.79 18.09 1.27 0.41 0.47 0.00 0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 80 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 8.66 5.19 4.34 3.73 2.14 2.36 93 4.97 30 32.58 29.36 26.53 24.98 19.66 26.62 48 26.85 47 37.30 29.08 26.00 25.20 20.08 25.81 55 26.12 47 19.61 17.72 16.24 15.01 13.15 17.20 31 16.08 50 24.94 22.19 20.94 20.20 19.08 22.91 17 21.32 33 26.61 22.36 21.72 20.43 17.62 23.53 13 22.07 31 17.32 13.50 11.54 10.87 9.67 13.33 25 11.17 67 13.23 9.71 8.21 7.14 5.51 9.58 25 7.66 61 14.10 12.39 9.87 9.48 8.49 11.03 32 9.22 75 13.57 12.10 10.33 9.96 9.10 11.26 41 9.71 88 13.83 12.32 10.64 10.37 10.18 10.74 50 10.43 67 0% 5% 10% 15% 20% 25% 30% 35% 40% M 1 M1 M1 M1 M 1 M 1 M 1 M 1 M 1 M 1 M1 81 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 10.78 9.29 7.49 5.96 3.97 5.68 75 8.67 32 49.42 41.40 35.57 33.53 30.02 37.36 40 34.76 60 23.12 19.38 17.84 14.17 10.42 22.00 12 17.26 59 7.47 0.93 -1.77 -4.40 -6.62 -0.10 29 -1.56 39 29.96 27.04 25.33 20.98 15.56 28.03 13 25.49 48 62.84 41.66 37.46 32.80 19.07 45.33 11 40.47 35 -26.70 -34.41 -36.57 -39.97 -43.43 -41.79 89 -41.46 89 16.25 8.84 7.20 2.65 -1.40 10.26 15 5.59 65 22.62 18.34 12.62 10.46 10.08 12.53 56 15.27 46 16.68 12.74 12.06 9.28 3.29 7.85 79 12.65 39 26.65 21.86 17.63 16.44 12.11 14.48 89 20.23 29 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% M1 M1 M 1 M1 M1 M 1 M1 M 1 M1 M 1 M 1 82 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 6/30/14 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 2.36 11.51 26.62 26.62 8.42 1.14 -0.88 0.77 3.15 23.26 5.45 -0.02 0 4 3.53 8.39 26.85 26.85 4.57 5.86 2 10 1.02 0.93 0.42 -17.17 17.31 1.71 37.36 17.99 0.99 0.31 0.94 0.95 17.36 4.29 0.21 2 10 -18.90 12.95 -1.67 34.76 17.73 0.90 3 17 1.00 0.87 0.55 -17.17 19.21 -0.10 41.77 17.11 0.94 0.61 0.95 1.37 24.95 3.90 0.27 3 17 -18.90 20.61 -1.67 38.49 17.83 1.23 31 74 1.15 1.16 0.55 -26.78 49.24 -41.79 77.74 22.79 1.14 0.05 0.83 0.41 8.19 9.85 0.12 32 73 -27.28 20.80 -41.46 67.72 18.09 0.47 83 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 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp 1 R Mid Cap Median 17.20 31 17.99 18 16.0850 17.73 18 16.24 19.08 An n u a l i z e d R a t e o f R e t u r n 14.0 14.9 15.8 16.7 17.6 18.5 19.4 20.3 21.2 22.1 23.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp 1 R Mid Cap Median 23.53 13 17.11 16 22.0731 17.83 29 21.72 18.40 84 City of Clearwater Employees Pension Fund Artisan Partners as of 6/30/14 Ihs Inc Regeneron Pharmaceut Applied Materials In Illumina Inc Discover Finl Svcs Borg-Warner Automoti Ametek Inc New Cigna Corp Lkq Corp Chipotle Mexican Gri GICS Sector % Port Industrials Health Care Information Technology Health Care Financials Consumer Discretionary Industrials Health Care Consumer Discretionary Consumer Discretionary 5.05 4.45 3.69 3.45 3.19 3.01 2.84 2.74 2.68 2.63 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 4.06 0.00 19.89 22.87 2.22 20.67 5.15 24.63 0.51 0.00 -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 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 0.12 4.37 52,910 -1 65 52,974 2.92 6.51 51,471 -2 1,505 52,974 27.02 26.05 48,692 -8,003 12,285 52,974 16.12 14.54 45,234 -13,010 20,751 52,974 23.26 21.16 24,899 -13,012 41,087 52,974 12.39 9.83 34,002 -13,012 31,984 52,974 10.56 8.17 29,914 -13,012 36,072 52,974 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 85 City of Clearwater Employees Pension Fund Artisan Partners as of 6/30/14 Cash & Equiv $2,246 4.24% Domestic Equity $50,728 95.76% Periods from 7/01 to 6/14 Alpha Beta R-Squared 0.60 0.94 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 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 10.56 8.17 1.64 19.31 19.10 0.52 0.46 0.34 0.00 0.29 Asset Allocation ($000) Risk/Return Analysis 86 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 5.56 4.00 3.24 2.10 0.12 0.12 95 4.37 15 31.11 29.07 24.94 23.02 18.93 27.02 43 26.05 44 28.61 26.20 24.72 23.06 19.10 24.23 52 24.46 50 17.66 16.46 14.65 13.65 9.16 16.12 29 14.54 52 25.12 23.16 20.79 20.13 16.78 23.79 21 21.13 41 24.51 23.26 21.17 20.53 18.22 23.26 25 21.16 50 16.21 12.54 11.31 9.69 7.53 14.39 14 10.49 62 11.67 11.15 8.42 7.56 5.75 11.26 15 7.89 52 13.32 12.51 9.79 8.81 6.61 12.84 14 9.31 62 14.12 12.90 10.71 9.67 8.10 12.90 25 9.71 70 13.72 12.72 11.18 9.85 8.30 12.39 42 9.83 76 -5% 0% 5% 10% 15% 20% 25% 30% 35% r 1 r1 r1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 r 1 87 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 8.50 6.70 5.47 3.31 0.44 2.92 83 6.51 35 43.46 39.44 37.43 31.05 18.29 39.21 29 35.76 60 22.65 20.66 17.65 14.97 4.51 20.82 22 15.80 68 14.72 1.60 -0.79 -4.60 -10.35 0.07 42 -1.66 58 35.44 30.79 27.03 24.63 19.27 33.15 13 26.39 61 58.62 47.62 40.37 35.55 28.85 51.38 19 46.30 27 -32.90 -35.48 -42.63 -44.78 -52.14 -42.87 54 -44.32 65 34.56 22.31 17.83 10.03 3.71 22.31 25 11.41 71 22.13 14.71 13.32 10.38 7.24 10.94 70 10.64 72 26.11 15.58 13.14 10.73 9.77 10.19 87 12.10 66 21.51 19.19 16.12 12.67 9.09 16.07 54 15.48 54 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% r1 r1 r 1 r1 r 1 r 1 r1 r 1 r1 r1 r1 88 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Midcap Growth Portfolios High 1st Qt Median 3rd Qt Low r Artisan Partners Net Ret Rank 1 R Mid Cap G Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 17.64 16.50 15.16 14.10 12.48 16.12 32 14.54 60 17.15 15.52 13.61 12.79 10.44 17.15 5 13.52 50 20.32 18.08 16.64 15.01 13.74 18.95 14 15.63 65 22.86 20.46 18.66 17.18 15.36 21.84 11 17.65 59 23.19 21.49 19.57 18.77 17.27 22.74 12 19.53 50 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% r 1 r 1 r 1 r 1 r 1 Artisan Partners Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% -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 6.2 -1.8 0.7 -4.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap G 89 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 6/30/14 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 0.12 16.16 27.02 27.02 14.03 1.35 -1.74 0.68 1.92 20.04 9.57 0.10 0 4 2.05 9.34 26.05 26.05 6.77 3.84 2 10 1.01 0.88 0.58 -14.74 21.06 1.45 39.21 18.86 0.95 0.56 0.83 0.85 16.97 7.81 0.15 2 10 -19.33 14.52 -2.99 35.76 18.23 0.79 3 17 1.02 0.86 0.55 -14.74 21.06 0.07 49.98 18.18 0.96 0.68 0.88 1.27 24.23 6.35 0.25 3 17 -19.33 17.58 -2.99 43.26 17.90 1.18 14 37 1.01 0.90 0.45 -27.54 26.70 -42.87 58.59 20.77 0.94 0.60 0.94 0.53 11.65 5.46 0.29 15 36 -27.36 27.06 -44.32 62.98 21.43 0.41 90 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 12.0 13.4 14.8 16.2 17.6 19.0 20.4 21.8 23.2 24.6 26.0 6.0 7.8 9.6 11.4 13.2 15.0 16.8 18.6 20.4 22.1 23.9 r 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank r Artisan Partners 1 R Mid Cap G Median 16.12 29 18.86 46 14.5452 18.23 41 14.65 18.98 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 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 r 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank r Artisan Partners 1 R Mid Cap G Median 23.26 25 18.18 49 21.1650 17.90 43 21.17 18.30 91 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 6/14 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 50,728,002 14,078,222 9,464,637 0.48 42.23 29.57 1.03 5.59 36.22 16.11 546 12,709,619 6,567,873 1.00 30.90 23.75 1.08 4.70 49.88 15.39 Ten Largest Holdings Ihs Inc Regeneron Pharmaceut Applied Materials In Illumina Inc Discover Finl Svcs Borg-Warner Automoti Ametek Inc New Cigna Corp Lkq Corp Chipotle Mexican Gri Market Value % of Portfolio Quarterly Ret 2,561,314 2,259,760 1,873,026 1,749,335 1,620,529 1,526,619 1,439,059 1,388,747 1,361,510 1,336,110 5.05 4.45 3.69 3.45 3.19 3.01 2.84 2.74 2.68 2.63 11.66 -5.93 10.99 20.10 6.97 6.27 1.71 9.84 1.29 4.31 Ten Best Performers C H Robinson Worldwi Illumina Inc Tripadvisor Inc Keurig Green Mtn Inc Tempur Pedic Intl In Autodesk Inc National Instrs Corp Whitewave Foods Co Expeditors Intl Wash Level 3 Communicatio Quarterly Ret 22.48 20.10 19.95 18.28 17.82 14.64 13.51 13.42 12.22 12.19 Ten Worst Performers Athenahealth Inc Isis Pharmaceuticals Guidewire Software I Core Laboratories N Tractor Supply Co Twitter Inc Arm Hldgs Plc Fossil Group Inc Cerner Corp Qihoo 360 Technology Quarterly Ret -21.91 -20.27 -17.10 -15.62 -14.27 -12.21 -10.96 -10.37 -8.30 -7.57 92 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 6/14 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 50,728,002 14,078,222 9,464,637 0.48 42.23 29.57 1.03 5.59 36.22 16.11 546 12,709,619 6,567,873 1.00 30.90 23.75 1.08 4.70 49.88 15.39 Ten Best Contributors Illumina Inc Ihs Inc Applied Materials In Autodesk Inc Keurig Green Mtn Inc Tripadvisor Inc Cigna Corp Waste Connections In Discover Finl Svcs Borg-Warner Automoti Market Value % of Portfolio Quarterly Ret 1,749,335 2,561,314 1,873,026 1,249,832 863,173 700,531 1,388,747 1,112,620 1,620,529 1,526,619 3.45 5.05 3.69 2.46 1.70 1.38 2.74 2.19 3.19 3.01 20.10 11.66 10.99 14.64 18.28 19.95 9.84 10.98 6.97 6.27 Ten Worst Contributors Athenahealth Inc Regeneron Pharmaceut Isis Pharmaceuticals Tractor Supply Co Cerner Corp Arm Hldgs Plc Cepheid Inc Fortune Brands Home Melco Pbl Entmnt Ltd Concur Technologies Market Value % of Portfolio Quarterly Ret 799,706 2,259,760 614,588 845,600 881,347 633,360 954,006 1,193,707 819,580 828,953 1.58 4.45 1.21 1.67 1.74 1.25 1.88 2.35 1.62 1.63 -21.91 -5.93 -20.27 -14.27 -8.30 -10.96 -7.06 -4.82 -6.45 -5.78 93 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 6/14 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 3.69 0.00 16.77 22.32 1.27 23.29 5.13 27.52 0.00 0.00 100.00 6.37 5.87 15.10 24.69 8.15 13.51 8.87 16.30 0.73 0.41 100.00 4.76 4.02 0.80 18.28 -3.82 2.22 -1.57 0.05 12.39 5.85 4.47 1.64 4.84 5.21 4.30 3.01 17.90 2.64 4.33 -0.28 0.00 -0.08 -0.19 0.17 -2.10 -0.11 -1.26 0.00 0.00 -3.85 -0.22 -0.09 0.00 0.06 -0.04 0.09 0.00 -0.15 -0.10 0.01 -0.43 -0.50 -0.09 -0.07 -0.13 0.14 -2.02 -0.11 -1.41 -0.10 0.01 -4.27 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 0.14% [ Actual Return 0.19% ] - [ Buy Hold Return 0.05% ] 94 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 6/14 % Allocation Energy 3.69 6.37 Materials 0.00 5.87 Industrials 16.77 15.10 Con. Discretionary 22.32 24.69 Consumer Staples 1.27 8.15 Health Care 23.29 13.51 Financials 5.13 8.87 Infomation Tech. 27.52 16.30 Telecom. Services 0.00 0.73 Utilities 0.00 0.41 Artisan Partners R Mid Cap G % Return 4.76 12.39 5.85 4.02 4.47 0.80 1.64 18.28 4.84 -3.82 5.21 2.22 4.30 -1.57 3.01 17.90 2.64 % Variance -0.50 -0.09 -0.07 -0.13 0.14 -2.02 -0.11 -1.41 -0.10 0.01 95 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 6/30/14 Allstate Corp Brunswick Corp Ashland Inc New Computer Sciences Co Lincoln Natl Corp In Hca Holdings Inc Carefusion Corp Wyndham Worldwide Co URS Corp New Werner Enterprises I GICS Sector % Port Financials Consumer Discretionary Materials Information Technology Financials Health Care Health Care Consumer Discretionary Industrials Industrials 4.11 4.09 3.85 3.84 3.84 3.30 3.27 3.19 3.18 3.08 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 8.01 7.98 18.84 17.36 0.00 6.58 27.65 4.80 0.00 8.79 -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 4.49 5.62 55,512 -1 2,493 58,004 8.33 11.13 53,544 -1 4,462 58,004 25.53 27.75 46,208 -2 11,798 58,004 18.02 17.55 44,686 -10,006 23,324 58,004 23.63 22.97 25,434 -10,007 42,576 58,004 9.46 7.48 30,365 -10,007 37,645 58,004 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 96 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 6/30/14 Cash & Equiv $1,906 3.29% Domestic Equity $56,098 96.71% Periods from 2/07 to 6/14 Alpha Beta R-Squared 0.49 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 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 w 1 T Annualized Standard Deviation% w Wedge Capital Mgmt 1 R Mid Cap V T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.46 7.48 0.92 20.00 20.10 0.49 0.43 0.33 0.00 0.44 Asset Allocation ($000) Risk/Return Analysis 97 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 Last 7 Years 7.52 6.30 5.60 4.57 3.88 4.49 82 5.62 49 31.06 29.45 24.10 19.13 13.29 25.53 41 27.75 30 33.54 28.79 25.40 19.35 10.39 27.00 32 27.70 29 23.44 18.02 17.25 12.62 11.14 18.02 26 17.55 40 27.06 23.38 19.01 15.70 14.83 21.90 34 21.53 36 28.53 24.17 22.24 17.13 15.61 23.63 34 22.97 39 13.70 11.81 9.00 7.13 0% 5% 10% 15% 20% 25% 30% 35% w 1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 98 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 18.18 11.73 9.68 6.86 5.70 8.33 61 11.13 34 44.14 35.77 34.92 30.79 2.76 34.92 50 33.45 59 32.17 20.13 17.42 14.81 8.89 23.16 8 18.48 30 7.76 5.86 -0.55 -5.12 -7.49 -0.33 46 -1.38 56 43.18 26.22 23.27 19.78 17.95 23.30 46 24.76 40 61.50 38.51 33.14 30.29 24.49 38.51 25 34.20 46 -28.88 -33.12 -35.25 -36.61 -41.25 -34.89 45 -38.45 84 -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 w 1 99 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Midcap Value Portfolios High 1st Qt Median 3rd Qt Low w Wedge Capital Mgmt Net Ret Rank 1 R Mid Cap V Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 23.44 18.02 17.25 12.62 11.14 18.02 26 17.55 40 20.13 16.58 16.23 15.12 11.25 16.28 34 15.16 75 20.79 18.31 17.68 14.53 10.74 18.31 26 15.96 66 24.38 19.98 18.71 12.27 11.91 19.98 26 17.26 56 26.28 20.71 18.09 17.58 14.03 20.71 26 19.52 29 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% w 1 w 1 w 1 w 1 w 1 Wedge Capital Mgmt Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% -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 0.7 0.1 -1.5 -1.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap V 100 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 6/30/14 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 0.92 0.50 3.68 8.63 25.53 25.53 4.47 0.99 -0.38 0.93 5.70 25.77 2.14 -0.85 0 4 5.21 8.55 27.75 27.75 3.03 9.15 3 9 1.02 1.00 0.58 -19.63 16.49 1.92 34.92 18.84 1.07 -0.14 0.98 0.95 16.79 2.76 0.22 2 10 -18.47 14.21 -0.40 33.45 17.46 1.00 5 15 0.98 0.86 0.60 -19.63 21.51 -0.63 34.92 17.59 0.95 0.42 0.95 1.34 24.83 4.21 0.10 4 16 -18.47 23.62 -2.36 34.30 18.09 1.26 11 18 1.02 0.92 0.66 -26.40 25.65 -39.75 73.15 22.85 0.99 0.49 0.97 0.37 8.60 4.07 0.44 10 19 -27.19 23.62 -42.51 72.41 22.73 0.29 101 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 4.0 6.2 8.4 10.6 12.8 15.0 17.2 19.4 21.6 23.8 26.0 8.0 9.8 11.6 13.4 15.2 17.0 18.8 20.5 22.3 24.1 25.9 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt 1 R Mid Cap V Median 18.02 26 18.84 85 17.5540 17.46 78 17.25 15.63 An n u a l i z e d R a t e o f R e t u r n 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt 1 R Mid Cap V Median 23.63 34 17.59 50 22.9739 18.09 65 22.24 17.59 102 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 6/14 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 45 56,097,627 9,438,277 6,121,105 2.07 17.05 18.19 1.26 1.80 63.55 9.69 565 11,193,006 6,002,493 2.04 23.22 19.81 1.12 1.78 65.06 8.81 Ten Largest Holdings Allstate Corp Brunswick Corp Ashland Inc New Computer Sciences Co Lincoln Natl Corp In Hca Holdings Inc Carefusion Corp Wyndham Worldwide Co URS Corp New Werner Enterprises I Market Value % of Portfolio Quarterly Ret 2,301,824 2,290,608 2,153,052 2,151,391 2,148,134 1,849,264 1,831,655 1,786,992 1,778,980 1,725,801 4.11 4.09 3.85 3.84 3.84 3.30 3.27 3.19 3.18 3.08 4.28 -6.76 9.67 4.29 1.86 7.39 10.27 3.90 -2.09 4.13 Ten Best Performers Hillshire Brands Co Qep Res Inc Old Dominion Fght Li Pg&E Corp Republic Svcs Inc Dover Corp UGI Corp New Carefusion Corp Energen Corp Ashland Inc New Quarterly Ret 67.76 17.26 12.23 12.23 11.91 11.73 11.40 10.27 10.18 9.67 Ten Worst Performers Steelcase Inc Darden Restaurants I Huntington Ingalls I Brunswick Corp Cit Group Inc Seacor Hldgs Inc Endurance Specialty Northrop Corp URS Corp New Convergys Corp Quarterly Ret -8.33 -7.84 -7.32 -6.76 -6.43 -4.83 -3.53 -2.47 -2.09 -1.82 103 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 6/14 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 45 56,097,627 9,438,277 6,121,105 2.07 17.05 18.19 1.26 1.80 63.55 9.69 565 11,193,006 6,002,493 2.04 23.22 19.81 1.12 1.78 65.06 8.81 Ten Best Contributors Qep Res Inc Ashland Inc New Pg&E Corp Carefusion Corp Nordstrom Inc Hca Holdings Inc Avalonbay Cmntys Inc Duke Realty Corp. Carlisle Corp Pinnacle West Cap Co Market Value % of Portfolio Quarterly Ret 1,345,500 2,153,052 1,695,106 1,831,655 1,705,043 1,849,264 1,265,491 1,295,734 1,143,384 1,538,544 2.40 3.85 3.03 3.27 3.05 3.30 2.26 2.31 2.04 2.75 17.26 9.67 12.23 10.27 9.31 7.39 9.17 8.64 9.47 6.89 Ten Worst Contributors Brunswick Corp Steelcase Inc Darden Restaurants I Cit Group Inc Seacor Hldgs Inc Huntington Ingalls I URS Corp New Endurance Specialty Northrop Corp Convergys Corp Market Value % of Portfolio Quarterly Ret 2,290,608 1,416,168 1,378,846 1,208,064 1,069,250 649,360 1,778,980 949,256 657,965 533,127 4.09 2.53 2.46 2.16 1.91 1.16 3.18 1.70 1.18 0.95 -6.76 -8.33 -7.84 -6.43 -4.83 -7.32 -2.09 -3.53 -2.47 -1.82 104 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 6/14 GICS Sectors Weight Portfolio Index Return Portfolio Index Selection Stock Sector Total Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom. Services Utilities 7.83 8.18 19.28 17.90 0.97 6.30 26.00 4.95 0.00 8.59 100.00 7.19 5.34 11.55 8.63 2.91 8.70 32.22 10.88 0.71 11.88 100.00 6.78 7.80 1.16 0.24 67.76 8.80 4.55 2.94 7.62 4.63 12.83 4.05 3.83 3.66 4.98 6.20 3.50 7.17 4.81 8.72 5.56 -0.47 0.31 -0.51 -0.61 0.61 0.16 0.27 -0.21 0.00 -0.09 -0.55 0.05 -0.04 -0.13 -0.18 0.01 -0.02 0.13 -0.10 0.01 -0.10 -0.38 -0.43 0.26 -0.65 -0.79 0.62 0.15 0.40 -0.31 0.01 -0.20 -0.93 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 -0.02% [ Actual Return 4.61% ] - [ Buy Hold Return 4.63% ] 105 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 6/14 % Allocation Energy 7.83 7.19 Materials 8.18 5.34 Industrials 19.28 11.55 Con. Discretionary 17.90 8.63 Consumer Staples 0.97 2.91 Health Care 6.30 8.70 Financials 26.00 32.22 Infomation Tech. 4.95 10.88 Telecom. Services 0.00 0.71 Utilities 8.59 11.88 Wedge Capital Mgmt R Mid Cap V % Return 6.78 12.83 7.80 4.05 1.16 3.83 0.24 3.66 67.76 4.98 8.80 6.20 4.55 3.50 2.94 7.17 4.81 7.62 8.72 % Variance -0.43 0.26 -0.65 -0.79 0.62 0.15 0.40 -0.31 0.01 -0.20 106 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 6/30/14 Cepheid Inc Grand Canyon Ed Inc National Instrs Corp Portfolio Recovery A Ultimate Software Gr Maximus Inc Chemed Corp New Rollins Inc Ritchie Bros Auction Mobile Mini GICS Sector % Port Health Care Consumer Discretionary Information Technology Financials Information Technology Information Technology Health Care Industrials Industrials Industrials 2.06 2.00 1.99 1.83 1.81 1.63 1.55 1.51 1.51 1.50 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 3.60 1.70 20.77 15.18 4.28 14.53 15.09 23.72 0.31 0.83 -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 -1.19 2.05 70,176 -1 -833 69,342 -0.79 3.19 69,898 -2 -554 69,342 20.57 23.64 57,515 -3 11,830 69,342 16.11 14.57 46,153 -2,009 25,198 69,342 21.36 20.21 58,442 -41,012 51,912 69,342 9.92 8.70 47,973 -41,012 62,381 69,342 10.50 9.84 29,988 -41,012 80,366 69,342 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 107 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 6/30/14 Cash & Equiv $1,661 2.40% Domestic Equity $67,681 97.60% Periods from 8/03 to 6/14 Alpha Beta R-Squared 0.34 0.92 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 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 10.50 9.84 1.58 18.46 19.27 0.55 0.48 0.43 0.00 0.10 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 108 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 Last 10 Years 5.27 3.78 2.98 2.03 0.17 -1.19 99 2.05 74 32.80 28.37 25.37 23.96 20.72 20.57 95 23.64 80 31.57 28.87 26.32 24.22 20.43 22.81 87 23.92 81 19.34 17.29 16.13 14.83 12.57 16.11 52 14.57 81 23.62 22.08 21.07 20.04 17.31 22.09 24 19.89 82 24.30 23.20 21.69 20.44 17.77 21.36 57 20.21 81 16.76 13.75 12.52 11.25 10.31 12.84 43 11.12 77 11.38 9.21 7.94 6.75 5.79 7.98 48 6.73 75 12.84 10.87 9.49 8.02 7.64 9.07 59 7.90 79 12.88 11.23 9.87 9.00 8.03 10.00 42 8.62 84 13.42 11.31 10.27 9.44 8.66 9.92 67 8.70 93 -5% 0% 5% 10% 15% 20% 25% 30% 35% S 1 S 1 S1 S 1 S 1 S1 S 1 S1 S1 S1 S1 109 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 8.89 6.20 4.83 3.28 0.71 -0.79 98 3.19 77 46.68 42.38 39.13 35.19 27.87 42.51 23 38.82 52 23.01 19.50 16.73 14.59 10.75 17.61 39 16.34 59 6.42 -0.45 -2.61 -5.09 -10.50 2.07 13 -4.17 69 33.78 29.97 27.13 24.61 20.51 29.27 30 26.85 54 62.14 36.57 30.30 27.04 21.89 33.51 41 27.19 73 -22.32 -30.16 -33.33 -37.07 -41.40 -38.63 84 -33.80 59 11.23 5.97 0.33 -4.32 -10.18 3.27 30 -1.55 63 24.68 20.65 18.17 15.45 10.44 17.40 56 18.35 46 14.61 10.27 7.95 4.67 2.34 7.21 60 4.56 80 27.43 23.80 20.87 18.67 11.21 15.69 87 18.32 78 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% S1 S1 S1 S 1 S1 S 1 S 1 S 1 S1 S1 S1 110 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 6/30/14 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 0.87 0.50 -1.19 11.27 20.57 20.57 12.47 1.19 -1.63 0.94 1.65 17.26 3.82 -0.63 0 4 1.12 10.21 23.64 23.64 9.21 2.56 3 9 0.96 0.79 0.58 -18.74 15.86 3.79 42.51 18.31 0.91 0.60 0.97 0.88 17.53 3.45 0.29 2 10 -21.86 15.48 -2.06 38.82 19.80 0.73 5 15 0.97 0.82 0.65 -18.74 16.53 2.07 42.51 17.58 0.90 0.67 0.97 1.21 23.52 3.53 0.18 4 16 -21.86 19.28 -4.17 38.82 19.21 1.05 13 30 0.96 0.89 0.60 -25.65 20.74 -38.63 57.55 18.76 0.92 0.34 0.95 0.50 10.23 4.38 0.10 13 30 -26.12 20.68 -37.50 62.77 20.06 0.43 111 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 15.2 16.4 17.6 18.8 20.0 21.2 22.4 23.6 24.8 26.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 S 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp 1 R2000 Median 16.11 52 18.31 20 14.5781 19.80 49 16.13 19.84 An n u a l i z e d R a t e o f R e t u r n 14.0 15.1 16.2 17.3 18.4 19.5 20.6 21.7 22.8 23.9 25.0 17.0 17.9 18.8 19.6 20.5 21.4 22.3 23.2 24.1 25.0 25.9 S 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp 1 R2000 Median 21.36 57 17.58 17 20.2181 19.21 51 21.69 19.23 112 City of Clearwater Employees Pension Fund Riverbridge Partners as of 6/30/14 Cepheid Inc Grand Canyon Ed Inc Portfolio Recovery A Ultimate Software Gr Maximus Inc National Instrs Corp Chemed Corp New Rollins Inc Ritchie Bros Auction Mobile Mini GICS Sector % Port Health Care Consumer Discretionary Financials Information Technology Information Technology Information Technology Health Care Industrials Industrials Industrials 4.25 4.12 3.78 3.74 3.36 3.26 3.20 3.12 3.11 3.10 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 21.30 14.91 3.60 21.12 5.63 33.45 0.00 0.00 -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 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 -2.35 1.72 34,292 0 -805 33,487 -3.28 2.21 34,624 -1 -1,136 33,487 17.89 24.73 28,407 -1 5,081 33,487 15.88 14.48 21,523 -4 11,968 33,487 20.05 18.80 16,876 -4 16,615 33,487 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 113 City of Clearwater Employees Pension Fund Riverbridge Partners as of 6/30/14 Cash & Equiv $674 2.01% Domestic Equity $32,813 97.99% Periods from 9/10 to 6/14 Alpha Beta R-Squared 1.11 0.79 0.93 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 -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 20.05 18.80 0.09 14.38 16.94 0.02 1.39 1.10 0.00 0.04 Asset Allocation ($000) Risk/Return Analysis 114 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 6/14 YTD Last Year Last 2 Years Last 3 Years 4.73 2.27 1.07 -1.06 -5.04 -2.35 86 1.72 38 6.57 3.28 1.38 -1.06 -5.64 -3.28 83 2.21 39 17.59 12.39 9.79 6.23 1.28 4.23 87 10.57 42 6.57 3.28 1.38 -1.06 -5.64 -3.28 83 2.21 39 29.56 26.90 22.86 18.30 14.23 17.89 81 24.73 38 29.61 26.39 23.67 20.45 16.43 20.54 72 24.19 47 19.36 17.24 15.05 12.79 7.56 15.88 42 14.48 57 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% R 1 R 1 R 1 R 1 R 1 R 1 R 1 115 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 6/30/14 YTD 2013 2012 2011 6.57 3.28 1.38 -1.06 -5.64 -3.28 83 2.21 39 54.25 46.67 42.88 37.73 29.42 43.50 48 43.29 49 22.18 18.31 15.37 13.11 6.53 17.83 31 14.59 63 7.69 3.06 -0.65 -3.49 -8.91 4.27 21 -2.92 71 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% R 1 R 1 R 1 R 1 116 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Small Growth Portfolios High 1st Qt Median 3rd Qt Low R Riverbridge Partners Net Ret Rank 1 R2000G Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 19.13 17.24 15.21 13.24 10.75 15.88 44 14.48 61 18.84 16.94 14.55 12.47 10.23 16.94 25 13.60 64 22.57 20.23 17.79 15.98 13.78 20.81 18 16.81 60 25.06 23.11 20.66 18.94 16.88 23.94 15 19.94 61 25.55 23.50 21.09 19.15 16.87 10% 12% 14% 16% 18% 20% 22% 24% 26% R 1 R 1 R 1 R 1 Riverbridge Partners Value Added Analysis - Net of Fee 12/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% -0.6 0.0 0.9 8.2 -1.6 -3.3 7.0 -1.4 0.8 -0.9 1.1 0.3 -0.4 -1.4 -4.0 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000G 117 City of Clearwater Employees Pension Fund Risk Measure Summary Riverbridge Partners Quarterly Periods Ending 6/30/14 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 0.72 0.25 -2.35 13.10 17.89 17.89 14.66 1.13 -2.15 0.94 1.22 15.79 3.83 -1.45 0 4 0.48 12.80 24.73 24.73 11.52 2.14 3 9 0.82 0.54 0.42 -15.89 13.13 7.10 43.50 16.51 0.77 1.02 0.92 0.96 20.54 6.79 0.04 2 10 -22.26 14.99 -2.73 43.29 20.62 0.70 3 12 0.86 0.51 0.40 -15.89 16.39 4.27 43.50 16.29 0.79 1.11 0.93 1.23 25.14 6.05 0.04 3 12 -22.26 17.11 -2.92 43.29 19.85 0.94 118 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Growth Portfolios 3 Years Ending 6/30/14 An n u a l i z e d R a t e o f R e t u r n 13.0 14.4 15.8 17.2 18.6 20.0 21.4 22.8 24.2 25.6 27.0 6.0 7.8 9.6 11.4 13.2 15.0 16.8 18.6 20.4 22.1 23.9 R 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Riverbridge Partners 1 R2000G Median 15.88 4216.51 7 14.485720.6263 15.0520.18 119 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 6/14 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 48 32,813,218 2,491,877 1,848,057 0.49 40.68 28.28 0.96 4.10 14.17 6.21 1,163 1,897,967 858,024 0.57 66.51 19.11 1.23 4.04 40.48 12.64 Ten Largest Holdings Cepheid Inc Grand Canyon Ed Inc Portfolio Recovery A Ultimate Software Gr Maximus Inc National Instrs Corp Chemed Corp New Rollins Inc Ritchie Bros Auction Mobile Mini Market Value % of Portfolio Quarterly Ret 1,395,485 1,353,081 1,241,201 1,225,568 1,103,893 1,068,449 1,051,070 1,023,960 1,020,288 1,016,465 4.25 4.12 3.78 3.74 3.36 3.26 3.20 3.12 3.11 3.10 -7.06 -1.56 2.89 0.85 -4.00 13.51 5.01 -0.45 2.75 10.90 Ten Best Performers Proto Labs Inc Pegasystems Inc Abaxis Inc National Instrs Corp Roadrunner Trnsn Svc Innerworkings Inc Mobile Mini Bio-Reference Labs I Techne Corp Stratasys Ltd Quarterly Ret 21.06 19.86 14.24 13.51 11.33 10.97 10.90 9.18 8.80 7.11 Ten Worst Performers Sciquest Inc New Channeladvisor Corp Athenahealth Inc Advisory Brd Co Dorman Products Inc Ebix Com Inc Costar Group Inc Beacon Roofing Suppl Power Integrations I Financial Engines In Quarterly Ret -34.52 -30.15 -21.91 -19.38 -16.49 -15.78 -15.30 -14.33 -12.35 -10.71 120 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 6/14 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 48 32,813,218 2,491,877 1,848,057 0.49 40.68 28.28 0.96 4.10 14.17 6.21 1,163 1,897,967 858,024 0.57 66.51 19.11 1.23 4.04 40.48 12.64 Ten Best Contributors Proto Labs Inc National Instrs Corp Mobile Mini Pegasystems Inc Abaxis Inc Techne Corp Roadrunner Trnsn Svc Chemed Corp New Bio-Reference Labs I Stratasys Ltd Market Value % of Portfolio Quarterly Ret 695,091 1,068,449 1,016,465 540,588 532,872 672,521 503,974 1,051,070 573,153 639,169 2.12 3.26 3.10 1.65 1.62 2.05 1.54 3.20 1.75 1.95 21.06 13.51 10.90 19.86 14.24 8.80 11.33 5.01 9.18 7.11 Ten Worst Contributors Sciquest Inc New Athenahealth Inc Channeladvisor Corp Advisory Brd Co Cepheid Inc Beacon Roofing Suppl Costar Group Inc Power Integrations I Neogen Corp Dorman Products Inc Market Value % of Portfolio Quarterly Ret 352,597 492,512 343,207 508,935 1,395,485 678,463 536,038 634,091 770,711 451,771 1.07 1.50 1.05 1.55 4.25 2.07 1.63 1.93 2.35 1.38 -34.52 -21.91 -30.15 -19.38 -7.06 -14.33 -15.30 -12.35 -9.97 -16.49 121 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 6/14 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 20.02 14.50 3.81 21.63 5.70 34.34 0.00 0.00 100.00 3.78 5.10 15.66 15.70 4.85 22.02 7.29 24.58 0.90 0.12 100.00 1.82 -3.71 -6.46 -3.15 -2.02 -3.35 -2.37 18.91 4.01 -0.61 -0.14 1.60 0.38 3.10 2.19 -3.72 4.26 1.70 0.00 0.00 0.49 -0.52 -0.31 -0.76 -0.29 -1.90 0.00 0.00 -3.30 -0.65 -0.12 -0.10 0.02 0.00 0.01 -0.02 0.05 0.05 -0.00 -0.77 -0.65 -0.12 0.39 -0.50 -0.31 -0.76 -0.31 -1.85 0.05 -0.00 -4.07 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 -0.04% [ Actual Return -2.40% ] - [ Buy Hold Return -2.37% ] 122 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 6/14 % Allocation Energy 0.00 3.78 Materials 0.00 5.10 Industrials 20.02 15.66 Con. Discretionary 14.50 15.70 Consumer Staples 3.81 4.85 Health Care 21.63 22.02 Financials 5.70 7.29 Infomation Tech. 34.34 24.58 Telecom. Services 0.00 0.90 Utilities 0.00 0.12 Riverbridge Partners R2000G % Return 18.91 4.01 1.82 -0.61 -3.71 -0.14 -6.46 1.60 -3.15 0.38 -2.02 3.10 -3.35 2.19 -3.72 4.26 % Variance -0.65 -0.12 0.39 -0.50 -0.31 -0.76 -0.31 -1.85 0.05 -0.00 123 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 6/30/14 Manhattan Assocs Inc Morningstar Inc Henry Jack & Assoc I Moog Inc ’a’ Dril-Quip Inc Sally Beauty Hldgs I Fair Isaac Corp Bio Rad Labs Inc Blackbaud Inc Forward Air Corp GICS Sector % Port Information Technology Consumer Discretionary Information Technology Industrials Energy Consumer Discretionary Information Technology Health Care Information Technology Industrials 3.69 2.80 2.80 2.74 2.52 2.35 2.31 2.21 2.08 2.08 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.52 4.16 24.42 16.65 5.82 8.30 17.82 20.32 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 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 0.17 2.05 17,236 0 30 17,266 -0.79 3.19 17,404 -1 -137 17,266 21.11 23.64 14,258 -1 3,010 17,266 15.96 15.22 12,938 -2,003 6,331 17,266 21.63 20.23 15,451 -12,003 13,818 17,266 12.81 8.40 23,896 -12,003 5,373 17,266 13.08 9.89 14,990 -12,003 14,280 17,266 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 124 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 6/30/14 Cash & Equiv $583 3.38% Domestic Equity $16,683 96.62% Periods from 8/03 to 6/14 Alpha Beta R-Squared 1.25 0.74 0.91 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 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 13.08 9.89 1.58 16.24 19.23 0.55 0.71 0.43 0.00 0.29 Asset Allocation ($000) Risk/Return Analysis 125 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 Last 10 Years 5.27 3.78 2.98 2.03 0.17 0.17 95 2.05 74 32.80 28.37 25.37 23.96 20.72 21.11 93 23.64 80 31.57 28.87 26.32 24.22 20.43 22.87 87 24.57 71 19.34 17.29 16.13 14.83 12.57 15.96 55 15.22 66 23.62 22.08 21.07 20.04 17.31 22.21 23 19.05 88 24.30 23.20 21.69 20.44 17.77 21.63 52 20.23 81 16.76 13.75 12.52 11.25 10.31 15.88 11 11.08 79 11.38 9.21 7.94 6.75 5.79 12.41 2 5.68 96 12.84 10.87 9.49 8.02 7.64 12.72 7 6.92 100 12.88 11.23 9.87 9.00 8.03 12.88 5 7.75 99 13.42 11.31 10.27 9.44 8.66 12.81 10 8.40 96 -5% 0% 5% 10% 15% 20% 25% 30% 35% t 1 t 1 t 1 t1 t 1 t1 t 1 t 1 t 1 t 1 t 1 126 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 t Atlanta Capital Mgmt Net Ret Rank 1 Russell 2000 Net Ret Rank 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 8.89 6.20 4.83 3.28 0.71 -0.79 98 3.19 77 46.68 42.38 39.13 35.19 27.87 42.43 23 37.88 58 23.01 19.50 16.73 14.59 10.75 12.53 89 18.05 36 6.42 -0.45 -2.61 -5.09 -10.50 10.20 1 -5.50 76 33.78 29.97 27.13 24.61 20.51 25.98 66 24.51 75 62.14 36.57 30.30 27.04 21.89 26.83 77 20.57 96 -22.32 -30.16 -33.33 -37.07 -41.40 -19.52 1 -28.92 18 11.23 5.97 0.33 -4.32 -10.18 6.91 19 -9.77 92 24.68 20.65 18.17 15.45 10.44 16.22 65 23.48 8 14.61 10.27 7.95 4.67 2.34 6.23 62 4.70 73 27.43 23.80 20.87 18.67 11.21 20.24 58 22.25 39 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% t1 t 1 t 1 t 1 t1 t 1 t 1 t 1 t 1 t1 t1 127 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Small Cap Neutral Portfolios High 1st Qt Median 3rd Qt Low t Atlanta Capital Mgmt Net Ret Rank 1 Russell 2000 Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 18.77 17.29 16.14 14.88 13.32 15.96 57 15.22 68 16.90 14.96 14.23 13.30 11.38 16.90 5 13.42 67 19.72 17.71 16.60 15.41 13.59 20.88 1 15.43 74 22.20 19.95 18.89 17.92 15.76 22.31 3 17.74 79 22.28 20.52 19.32 18.43 16.94 22.59 2 17.56 85 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% t 1 t 1 t 1 t 1 t 1 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% -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 0.0 1.8 -2.1 -1.8 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Russell 2000 128 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 6/30/14 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 0.89 0.50 -0.96 10.72 21.11 21.11 12.60 1.21 -1.63 0.95 1.67 17.42 3.82 -0.51 0 4 1.12 10.21 23.64 23.64 9.21 2.56 3 9 0.92 0.77 0.50 -15.76 16.42 3.29 42.43 17.11 0.86 0.60 0.95 0.93 18.39 4.55 0.02 2 10 -21.47 15.97 -1.43 37.88 19.39 0.78 4 16 0.92 0.67 0.55 -15.76 16.42 3.29 43.07 16.17 0.80 1.18 0.93 1.33 26.93 5.91 0.07 4 16 -21.47 22.70 -6.00 37.88 19.57 1.03 12 31 0.89 0.60 0.58 -16.60 18.00 -24.55 52.53 15.55 0.74 1.25 0.91 0.77 16.24 7.07 0.29 12 31 -24.89 22.70 -38.89 65.05 20.26 0.42 129 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 15.2 16.4 17.6 18.8 20.0 21.2 22.4 23.6 24.8 26.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 t 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt 1 Russell 2000 Median 15.96 55 17.11 8 15.2266 19.39 37 16.13 19.84 An n u a l i z e d R a t e o f R e t u r n 14.0 15.1 16.2 17.3 18.4 19.5 20.6 21.7 22.8 23.9 25.0 17.0 17.9 18.8 19.6 20.5 21.4 22.3 23.2 24.1 25.0 25.9 t 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt 1 Russell 2000 Median 21.63 52 16.17 10 20.2381 19.57 60 21.69 19.23 130 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 6/14 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 65 16,682,584 2,701,525 2,445,993 1.05 27.30 26.11 1.01 3.20 16.14 8.59 1,971 1,777,044 733,964 1.21 49.72 16.86 1.25 2.24 46.86 9.52 Ten Largest Holdings Manhattan Assocs Inc Morningstar Inc Henry Jack & Assoc I Moog Inc ’a’ Dril-Quip Inc Sally Beauty Hldgs I Fair Isaac Corp Bio Rad Labs Inc Blackbaud Inc Forward Air Corp Market Value % of Portfolio Quarterly Ret 615,367 466,693 465,991 457,020 420,028 391,223 384,728 369,186 346,535 345,956 3.69 2.80 2.80 2.74 2.52 2.35 2.31 2.21 2.08 2.08 -1.71 -8.92 7.00 11.27 -2.55 -8.47 15.30 -6.56 14.59 4.07 Ten Best Performers US Ecology Inc Hittite Microwave Co Aaon Inc Aaron Rents Inc Fair Isaac Corp Blackbaud Inc National Instrs Corp Huron Consulting Gro Moog Inc ’a’ Wex Inc Quarterly Ret 32.41 23.97 20.75 17.93 15.30 14.59 13.51 11.74 11.27 10.44 Ten Worst Performers Advisory Brd Co Inter Parfums Inc Stepan Chem Co Dorman Products Inc Beacon Roofing Suppl Power Integrations I Artisan Partners Ass Morningstar Inc Mwi Veterinary Suppl Wolverine World Wide Quarterly Ret -19.38 -18.06 -17.86 -16.49 -14.33 -12.35 -10.89 -8.92 -8.76 -8.51 131 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 6/14 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 65 16,682,584 2,701,525 2,445,993 1.05 27.30 26.11 1.01 3.20 16.14 8.59 1,971 1,777,044 733,964 1.21 49.72 16.86 1.25 2.24 46.86 9.52 Ten Best Contributors Fair Isaac Corp Moog Inc ’a’ Blackbaud Inc Aaon Inc Hittite Microwave Co National Instrs Corp US Ecology Inc Henry Jack & Assoc I Wex Inc Clarcor Inc Market Value % of Portfolio Quarterly Ret 384,728 457,020 346,535 211,176 170,944 280,206 113,368 465,991 270,298 311,724 2.31 2.74 2.08 1.27 1.03 1.68 0.68 2.80 1.62 1.87 15.30 11.27 14.59 20.75 23.97 13.51 32.41 7.00 10.44 8.17 Ten Worst Contributors Dorman Products Inc Morningstar Inc Power Integrations I Sally Beauty Hldgs I Artisan Partners Ass Stepan Chem Co Inter Parfums Inc Bio Rad Labs Inc Monro Muffler Brake Advisory Brd Co Market Value % of Portfolio Quarterly Ret 338,434 466,693 310,486 391,223 284,534 167,196 155,817 369,186 327,810 97,073 2.03 2.80 1.86 2.35 1.71 1.00 0.93 2.21 1.97 0.58 -16.49 -8.92 -12.35 -8.47 -10.89 -17.86 -18.06 -6.56 -6.26 -19.38 132 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 6/14 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 2.59 4.11 26.29 18.44 5.18 7.78 16.88 18.75 0.00 0.00 100.00 5.66 4.85 14.46 13.02 3.68 13.58 23.19 17.73 0.71 3.11 100.00 -2.55 -2.79 4.98 -4.57 -1.82 -2.62 -1.87 4.44 0.50 11.26 1.84 0.21 1.20 1.09 0.99 1.88 1.78 -3.09 8.95 2.09 -0.36 -0.19 1.25 -1.06 -0.15 -0.28 -0.63 0.50 0.00 0.00 -0.92 -0.28 0.00 -0.22 -0.05 -0.01 0.06 0.01 -0.00 0.04 -0.21 -0.67 -0.64 -0.19 1.03 -1.11 -0.17 -0.22 -0.62 0.49 0.04 -0.21 -1.59 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 -0.32% [ Actual Return 0.18% ] - [ Buy Hold Return 0.50% ] 133 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 6/14 % Allocation Energy 2.59 5.66 Materials 4.11 4.85 Industrials 26.29 14.46 Con. Discretionary 18.44 13.02 Consumer Staples 5.18 3.68 Health Care 7.78 13.58 Financials 16.88 23.19 Infomation Tech. 18.75 17.73 Telecom. Services 0.00 0.71 Utilities 0.00 3.11 Atlanta Capital Mgmt Russell 2000 % Return -2.55 11.26 -2.79 1.84 4.98 0.21 -4.57 1.20 -1.82 1.09 -2.62 0.99 -1.87 1.88 4.44 1.78 -3.09 8.95 % Variance -0.64 -0.19 1.03 -1.11 -0.17 -0.22 -0.62 0.49 0.04 -0.21 134 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 6/30/14 Dupont Fabros Techno Callon Pete Co Del Bbcn Bancorp Inc Diamond Foods Inc First Merchants Corp Gray Television Inc Iberiabank Corp Horizon Pharma Inc Supervalu Inc Hci Group Inc GICS Sector % Port Financials Energy Financials Consumer Staples Financials Consumer Discretionary Financials Health Care Consumer Staples Financials 3.05 1.98 1.90 1.88 1.87 1.78 1.72 1.65 1.61 1.60 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 11.08 2.50 16.47 14.33 4.11 8.35 29.65 9.27 1.15 3.09 -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 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 -0.31 2.38 18,647 0 -58 18,589 4.02 4.20 17,870 0 719 18,589 25.18 22.54 14,850 -1 3,739 18,589 16.72 14.64 11,691 -2 6,900 18,589 23.59 19.88 10,763 -6,002 13,828 18,589 9.50 8.23 24,077 -6,002 513 18,589 10.22 9.74 15,001 -6,002 9,590 18,589 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 135 City of Clearwater Employees Pension Fund Systematic Financial Mgt as of 6/30/14 Cash & Equiv $404 2.17% Domestic Equity $18,186 97.83% Periods from 8/03 to 6/14 Alpha Beta R-Squared 0.18 1.06 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 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 10.22 9.74 1.58 21.01 19.19 0.55 0.41 0.43 0.00 0.10 Asset Allocation ($000) Risk/Return Analysis 136 City of Clearwater Employees Pension Fund Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 6/14 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 Last 10 Years 5.50 4.23 3.10 1.03 0.40 -0.31 97 2.38 63 29.29 27.51 25.90 23.26 20.04 25.18 60 22.54 80 30.75 27.49 26.50 23.92 22.08 27.23 35 23.64 75 19.98 18.44 16.49 15.19 12.68 16.72 45 14.64 83 24.66 21.48 20.80 19.47 17.44 21.84 19 18.61 80 27.08 23.09 21.83 20.74 19.19 23.59 15 19.88 81 17.99 15.08 13.50 12.96 10.83 11.62 85 10.80 96 9.64 9.03 8.60 8.15 6.39 6.78 88 5.45 99 11.00 10.48 10.09 9.69 8.11 8.50 93 6.72 100 11.57 10.89 10.57 10.25 9.94 9.87 95 7.57 100 12.35 11.69 11.47 11.05 10.09 9.50 100 8.23 100 -5% 0% 5% 10% 15% 20% 25% 30% 35% s 1 s 1 s 1 s 1 s 1 s 1 s1 s1 s 1 s 1 s1 137 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 7.60 6.80 4.53 2.64 2.01 4.02 59 4.20 58 48.64 41.33 36.54 32.97 12.40 40.72 27 34.50 62 23.48 18.39 16.68 11.73 -3.32 23.50 4 18.05 31 2.62 1.43 -1.73 -4.67 -8.96 -9.91 96 -5.50 78 33.79 28.77 26.05 24.87 21.15 35.50 2 24.51 82 53.30 36.69 33.41 26.61 21.32 35.72 41 20.57 95 -23.82 -26.01 -29.30 -32.93 -38.96 -40.71 96 -28.92 48 9.59 2.19 -1.88 -4.31 -11.93 0.49 37 -9.77 92 23.29 20.94 19.13 15.90 10.87 18.61 55 23.48 1 13.78 10.94 8.98 7.48 4.21 8.27 60 4.70 88 28.23 24.36 21.39 18.37 12.52 11.42 100 22.25 33 -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 s 1 s1 s 1 138 City of Clearwater Employees Pension Fund June 30, 2014 Performance Comparison Total Returns of Small Value Portfolios High 1st Qt Median 3rd Qt Low s Systematic Financial Mgt Net Ret Rank 1 R2000V Net Ret Rank Sep 11 Jun 14 Jun 11 Mar 14 Mar 11 Dec 13 Dec 10 Sep 13 Sep 10 Jun 13 19.90 18.44 16.58 15.32 13.11 16.72 46 14.64 87 19.22 15.72 14.44 13.52 10.67 14.92 44 12.73 82 22.44 18.39 17.00 15.93 12.43 16.12 67 14.48 81 21.37 19.48 18.81 17.32 14.93 18.88 44 16.56 81 22.55 19.97 19.04 18.01 16.27 20.75 14 17.33 80 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% s 1 s 1 s 1 s 1 s 1 Systematic Financial Mgt Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 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 1.1 1.2 2.5 -2.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000V 139 City of Clearwater Employees Pension Fund Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 6/30/14 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 1.12 0.75 -0.31 10.64 25.18 25.18 9.77 1.15 -0.16 0.86 2.57 21.94 4.56 0.51 0 4 1.78 9.29 22.54 22.54 7.49 3.00 3 9 1.27 1.31 0.67 -27.29 20.97 -1.76 44.73 24.83 1.28 -0.30 0.97 0.67 13.05 6.71 0.44 2 10 -21.47 15.97 -1.43 34.50 19.18 0.76 5 15 1.26 1.24 0.70 -27.29 25.37 -11.58 44.73 24.21 1.23 -0.10 0.98 0.97 19.11 5.80 0.72 4 16 -21.47 22.70 -6.00 34.50 19.46 1.02 15 28 1.04 1.00 0.58 -27.29 25.37 -40.88 74.73 23.00 1.06 0.18 0.86 0.39 8.59 8.75 0.10 12 31 -24.89 22.70 -38.89 65.05 20.19 0.41 140 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 15.2 16.4 17.6 18.8 20.0 21.2 22.4 23.6 24.8 26.0 12.0 12.9 13.8 14.6 15.5 16.4 17.3 18.2 19.1 20.0 20.9 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt 1 R2000V Median 16.72 45 24.83 100 14.6483 19.18 41 16.49 19.71 An n u a l i z e d R a t e o f R e t u r n 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.6 24.4 26.2 28.0 17.0 17.9 18.8 19.6 20.5 21.4 22.3 23.2 24.1 25.0 25.9 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt 1 R2000V Median 23.59 15 24.21 98 19.8881 19.46 62 21.83 18.97 141 City of Clearwater Employees Pension Fund Equity Summary Statistics Systematic Financial Mgt Period Ending 6/14 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 128 18,185,538 1,396,187 921,628 1.11 64.36 16.59 1.39 2.01 50.02 11.95 1,319 1,656,095 656,084 1.86 39.65 16.03 1.26 1.55 53.05 6.49 Ten Largest Holdings Dupont Fabros Techno Callon Pete Co Del Bbcn Bancorp Inc Diamond Foods Inc First Merchants Corp Gray Television Inc Iberiabank Corp Horizon Pharma Inc Supervalu Inc Hci Group Inc Market Value % of Portfolio Quarterly Ret 554,702 359,403 344,919 341,220 339,297 322,998 313,085 298,998 292,427 291,305 3.05 1.98 1.90 1.88 1.87 1.78 1.72 1.65 1.61 1.60 13.72 39.19 -6.49 -19.27 -1.92 26.62 -0.88 4.63 20.18 12.31 Ten Best Performers Abraxas Pete Corp U S Silica Hldgs Inc Callon Pete Co Del Gaslog Ltd Tower Intl Inc Formfactor Inc Conns Inc Comstock Res Inc Gray Television Inc Integrated Device Te Quarterly Ret 58.08 45.60 39.19 37.60 35.34 30.20 27.13 26.82 26.62 26.41 Ten Worst Performers Quantum Fuel Sys Tec Hydrogenics Corp New Ultra Clean Hldgs In Biotelemetry Inc Magicjack Vocaltec L Arotech Corp Broadwind Energy Inc Revolution Lighting Gain Cap Hldgs Inc Insys Therapeutics I Quarterly Ret -40.29 -31.45 -31.18 -28.94 -28.78 -28.30 -28.23 -26.98 -26.72 -24.62 142 City of Clearwater Employees Pension Fund Equity Contribution to Return Systematic Financial Mgt Period Ending 6/14 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 128 18,185,538 1,396,187 921,628 1.11 64.36 16.59 1.39 2.01 50.02 11.95 1,319 1,656,095 656,084 1.86 39.65 16.03 1.26 1.55 53.05 6.49 Ten Best Contributors Callon Pete Co Del Abraxas Pete Corp Gray Television Inc Dupont Fabros Techno Supervalu Inc Gaslog Ltd Jetblue Awys Corp Arcbest Corp Integrated Device Te Formfactor Inc Market Value % of Portfolio Quarterly Ret 359,403 159,004 322,998 554,702 292,427 123,574 186,620 254,534 148,416 128,544 1.98 0.87 1.78 3.05 1.61 0.68 1.03 1.40 0.82 0.71 39.19 58.08 26.62 13.72 20.18 37.60 24.86 17.84 26.41 30.20 Ten Worst Contributors Diamond Foods Inc Ultra Clean Hldgs In Biotelemetry Inc Magicjack Vocaltec L Vaalco Energy Inc Generac Hldgs Inc Gain Cap Hldgs Inc Texas Capital Bancsh Zeltiq Aesthetics In Roundys Inc Market Value % of Portfolio Quarterly Ret 341,220 169,009 133,362 130,032 229,010 186,431 118,837 178,035 102,533 113,919 1.88 0.93 0.73 0.72 1.26 1.03 0.65 0.98 0.56 0.63 -19.27 -31.18 -28.94 -28.78 -15.44 -17.35 -26.72 -16.92 -22.54 -19.91 143 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 6/14 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 10.00 4.17 15.83 15.12 4.55 9.69 27.48 8.63 1.24 3.29 100.00 7.61 4.59 13.21 10.23 2.48 4.82 39.70 10.62 0.52 6.22 100.00 7.65 4.32 1.38 -0.97 -4.76 -10.79 -0.02 -2.68 -22.29 9.08 -0.46 7.34 -0.72 1.23 3.34 0.06 3.95 1.64 0.77 -1.97 9.04 2.51 0.03 0.21 0.02 -0.65 -0.22 -1.43 -0.46 -0.30 -0.25 0.00 -3.04 0.12 0.01 -0.03 0.04 -0.05 0.07 0.11 0.03 -0.03 -0.19 0.07 0.15 0.22 -0.01 -0.61 -0.27 -1.36 -0.35 -0.26 -0.29 -0.19 -2.97 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 0.12% [ Actual Return -0.34% ] - [ Buy Hold Return -0.46% ] 144 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 6/14 % Allocation Energy 10.00 7.61 Materials 4.17 4.59 Industrials 15.83 13.21 Con. Discretionary 15.12 10.23 Consumer Staples 4.55 2.48 Health Care 9.69 4.82 Financials 27.48 39.70 Infomation Tech. 8.63 10.62 Telecom. Services 1.24 0.52 Utilities 3.29 6.22 Systematic Financial Mgt R2000V % Return 7.65 7.34 4.32 -0.72 1.38 1.23 -0.97 3.34 -4.76 0.06 -10.79 3.95 -0.02 1.64 -2.68 0.77 -22.29 -1.97 9.08 9.04 % Variance 0.15 0.22 -0.01 -0.61 -0.27 -1.36 -0.35 -0.26 -0.29 -0.19 145 146 City of Clearwater Employees Pension Fund International EQ Comp as of 6/30/14 Core Laboratories N Canadian Pac Railway Bhp Billiton Ltd Rio Tinto Plc Shire Novartis A G Schlumberger Ltd Icici Bk Ltd Canadian Natl Ry Co Arm Hldgs Plc GICS Sector % Port Energy Industrials Materials Materials Health Care Health Care Energy Financials Industrials Information Technology 3.68 3.58 3.10 3.00 2.83 2.77 2.55 2.35 2.18 2.17 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 23.11 17.75 13.21 4.18 9.22 10.55 14.52 6.79 0.67 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 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 5.48 4.34 121,008 -6 6,632 127,635 6.45 5.14 119,913 -10 7,731 127,635 20.73 24.09 105,739 -22 21,918 127,635 4.76 8.59 123,228 -9,582 13,989 127,635 12.02 12.27 85,762 -9,750 51,623 127,635 7.83 7.42 20,802 -9,750 116,582 127,635 6.27 6.30 20,000 -9,750 117,384 127,635 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 147 City of Clearwater Employees Pension Fund International EQ Comp as of 6/30/14 Cash & Equiv $3,936 3.08% Intl Equity $123,699 96.92% Periods from 5/01 to 6/14 Alpha Beta R-Squared -0.01 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 6.0 6.5 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 6.27 6.30 1.66 18.25 17.79 0.52 0.25 0.26 0.00 0.01 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 148 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/14 High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI EAFE Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years Last 8 Years Last 9 Years Last 10 Years 8.39 5.72 4.42 3.14 0.42 5.48 27 4.34 51 31.70 25.34 21.91 16.92 8.92 20.73 60 24.09 31 28.84 23.06 19.44 14.74 7.21 15.74 72 21.59 32 15.62 11.16 8.32 5.74 -0.79 4.76 80 8.59 46 20.04 16.08 13.71 11.28 5.64 10.93 77 13.79 48 19.99 15.53 13.52 11.70 8.37 12.02 68 12.27 65 11.56 7.09 4.79 3.26 0.60 3.52 71 3.53 71 8.62 5.03 3.24 1.74 -0.60 1.81 73 1.45 79 11.14 7.83 6.13 4.72 2.44 4.79 74 4.40 79 12.53 9.82 8.15 6.87 4.69 7.03 72 6.70 77 14.14 10.89 8.87 7.54 5.19 7.83 67 7.42 77 -5% 0% 5% 10% 15% 20% 25% 30% 35% I1 I 1 I 1 I 1 I 1 I1 I1 I1 I1 I1 I1 149 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 10.87 7.21 5.49 3.69 -0.32 6.45 33 5.14 54 34.21 27.08 21.64 15.88 3.63 10.23 88 23.29 41 26.80 21.29 18.60 15.86 6.67 17.61 60 17.90 56 0.26 -8.92 -12.44 -15.60 -22.34 -15.04 71 -11.73 42 26.86 18.71 13.17 9.07 3.16 18.37 25 8.21 78 78.78 45.58 35.69 27.76 11.82 57.93 14 32.46 60 -24.04 -39.49 -43.29 -47.85 -56.19 -47.94 75 -43.06 47 41.33 18.96 12.52 8.13 0.30 11.02 60 11.63 54 37.26 30.37 26.42 22.27 9.78 27.62 41 26.85 45 38.35 21.13 15.94 11.99 6.52 13.15 68 14.01 61 32.12 23.92 20.01 16.56 9.77 17.66 69 20.69 42 -60% -40% -20% 0% 20% 40% 60% 80% 100% I1 I 1 I1 I1 I 1 I 1 I1 I1 I1 I1 I1 150 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 6/30/14 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 0.86 0.50 0.92 7.92 20.73 20.73 5.81 0.69 0.97 0.90 3.56 29.96 4.17 -0.74 0 4 0.77 11.61 24.09 24.09 9.02 2.66 3 9 0.94 1.23 0.42 -21.66 11.27 -14.16 20.73 18.10 1.05 -0.96 0.95 0.26 4.48 4.26 -0.80 3 9 -18.95 11.61 -13.38 24.29 16.79 0.51 5 15 1.04 1.09 0.50 -21.66 19.18 -15.04 31.72 18.85 1.01 -0.05 0.94 0.63 11.78 4.81 -0.03 4 16 -18.95 19.52 -13.38 30.92 17.96 0.68 17 35 1.01 1.02 0.48 -26.42 31.05 -47.94 71.81 21.70 1.03 -0.00 0.95 0.23 4.80 4.96 0.01 17 35 -20.50 25.85 -46.20 58.14 20.62 0.24 151 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 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 I 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp 1 MSCI EAFE Median 4.76 80 18.10 61 8.5946 16.79 35 8.32 17.56 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 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 I1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp 1 MSCI EAFE Median 12.02 68 18.86 61 12.2765 17.96 43 13.52 18.23 152 City of Clearwater Employees Pension Fund Earnest Partners as of 6/30/14 Shire Icici Bk Ltd Arm Hldgs Plc Core Laboratories N Denso Corp Dnb Asa Roche Holdings Ag Icon Plc Advanced Semiconduct Amadeus It Hldgs Sa GICS Sector % Port Health Care Financials Information Technology Energy Consumer Discretionary Financials Health Care Health Care Information Technology Information Technology 5.16 4.30 3.96 3.86 3.05 2.88 2.83 2.82 2.74 2.72 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 15.32 12.05 7.19 7.64 4.64 16.67 22.86 12.40 1.23 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 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 3.82 4.34 45,391 -3 1,736 47,124 3.77 5.14 45,418 -6 1,712 47,124 21.88 24.09 38,678 -16 8,462 47,124 6.66 8.59 32,104 5,439 9,581 47,124 14.37 12.27 19,915 5,432 21,777 47,124 4.91 2.21 29,002 5,432 12,690 47,124 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 153 City of Clearwater Employees Pension Fund Earnest Partners as of 6/30/14 Cash & Equiv $1,836 3.90% Intl Equity $45,288 96.10% Periods from 4/08 to 6/14 Alpha Beta R-Squared 0.71 1.06 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 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 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 4.91 2.21 0.27 22.31 21.49 0.17 0.21 0.09 0.00 0.56 Asset Allocation ($000) Risk/Return Analysis 154 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/14 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 Last 6 Years 8.39 5.72 4.42 3.14 0.42 3.82 62 4.34 51 31.70 25.34 21.91 16.92 8.92 21.88 50 24.09 31 28.84 23.06 19.44 14.74 7.21 19.29 51 21.59 32 15.62 11.16 8.32 5.74 -0.79 6.66 67 8.59 46 20.04 16.08 13.71 11.28 5.64 13.67 51 13.79 48 19.99 15.53 13.52 11.70 8.37 14.37 37 12.27 65 11.56 7.09 4.79 3.26 0.60 6.41 31 3.53 71 -5% 0% 5% 10% 15% 20% 25% 30% 35% e 1 e 1 e 1 e 1 e 1 e 1 e 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 e Earnest Partners Net Ret Rank 1 MSCI EAFE Net Ret Rank 6/30/14 YTD 2013 2012 2011 2010 2009 10.87 7.21 5.49 3.69 -0.32 3.77 73 5.14 54 34.21 27.08 21.64 15.88 3.63 15.81 75 23.29 41 26.80 21.29 18.60 15.86 6.67 17.18 64 17.90 56 0.26 -8.92 -12.44 -15.60 -22.34 -6.88 18 -11.73 42 26.86 18.71 13.17 9.07 3.16 16.61 32 8.21 78 78.78 45.58 35.69 27.76 11.82 55.54 16 32.46 60 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% e 1 e 1 e 1 e 1 e 1 e 1 156 City of Clearwater Employees Pension Fund June 30, 2014 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 6/14 3/14 12/13 9/13 6/13 15.62 11.16 8.32 5.74 -0.79 6.66 67 8.59 46 14.83 10.31 7.43 4.15 -3.53 5.52 66 7.72 45 15.73 10.92 8.20 5.08 -2.66 8.11 51 8.66 44 16.47 11.25 8.76 6.05 -1.12 8.30 56 8.97 46 17.75 13.01 10.57 8.28 2.28 11.05 42 10.55 50 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% e 1 e 1 e 1 e 1 e 1 Earnest Partners Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -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% 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 -0.8 0.3 -0.8 -0.5 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 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 e 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank e Earnest Partners 1 MSCI EAFE Median 6.66 67 18.14 62 8.5946 16.79 35 8.32 17.56 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 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 e 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank e Earnest Partners 1 MSCI EAFE Median 14.37 37 19.14 66 12.2765 17.96 43 13.52 18.23 158 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Earnest Partners Period Ending 6/14 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 51 45,287,975 43,908,900 21,235,476 2.17 19.15 17.79 1.00 1.87 79.85 14.42 8.22 898 63,978,074 9,420,285 3.13 17.42 17.90 1.00 1.68 86.18 15.37 6.92 Ten Largest Holdings Shire Icici Bk Ltd Arm Hldgs Plc Core Laboratories N Denso Corp Dnb Asa Roche Holdings Ag Icon Plc Advanced Semiconduct Amadeus It Hldgs Sa Market Value % of Portfolio Quarterly Ret 2,333,732 1,942,208 1,789,694 1,744,441 1,379,315 1,300,037 1,277,760 1,276,681 1,237,464 1,228,710 5.16 4.30 3.96 3.86 3.05 2.88 2.83 2.82 2.74 2.72 59.15 13.93 -10.96 -15.62 -0.66 7.93 -0.58 -0.93 17.12 -0.76 Ten Best Performers Shire Advanced Semiconduct Nippon Steel & Sumit Royal Dutch Shell Icici Bk Ltd Banco Do Brasil S A China Shipping Conta Statoil Asa Schoeller Bleckmann Transocean Ltd Zug Quarterly Ret 59.15 17.12 16.80 14.64 13.93 13.83 13.73 12.37 12.04 10.87 Ten Worst Performers Anhui Conch Cement Core Laboratories N Societe Generale Arm Hldgs Plc Credit Suisse Group Conwert Immobilien I Ericsson L M Tel Co Getinge Ab Erste Group Bank Ag Rio Tinto Plc Quarterly Ret -18.67 -15.62 -12.99 -10.96 -10.04 -9.44 -7.22 -6.07 -4.61 -2.78 159 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 6/14 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 Hong Kong India Ireland Isle of Man Israel Italy Japan Luxembourg Mexico Netherlands New Zealand Norway Panama Portugal Scotland 8.37 0.28 1.22 0.13 0.00 0.00 0.19 0.41 0.06 0.00 0.00 1.35 0.91 9.74 9.42 2.51 0.00 0.33 0.05 0.53 2.49 19.76 0.29 0.02 3.28 0.11 0.69 0.00 0.19 0.07 8.37 0.28 1.22 0.13 0.00 0.00 0.19 0.41 0.06 0.00 0.00 1.35 0.91 9.74 9.42 2.51 0.00 0.33 0.05 0.53 2.49 19.76 0.29 0.02 3.28 0.11 0.69 0.00 0.19 0.07 0.92 0.50 6.30 17.97 1.24 7.55 -1.26 4.48 6.22 3.03 2.89 8.92 -8.32 0.39 0.69 1.72 4.86 1.20 3.92 0.43 -0.65 13.57 0.12 4.69 2.59 -0.17 5.60 15.75 1.32 10.31 -1.18 3.94 5.51 2.35 2.21 9.02 -8.93 1.26 2.49 1.05 6.60 3.48 6.58 -0.20 0.25 10.80 -0.55 7.37 1.74 5.09 0.00 0.00 2.23 1.29 0.25 0.00 6.91 1.32 1.13 0.00 0.00 3.30 2.59 1.53 3.85 2.91 0.00 0.00 0.00 9.88 1.67 0.00 4.67 0.00 6.03 1.72 0.00 0.00 0.00 5.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.13 0.00 0.00 3.30 2.59 8.70 0.00 0.00 0.00 0.00 0.00 9.88 0.00 0.00 0.00 0.00 5.64 0.00 0.00 0.00 1.00 3.10 10.52 -1.87 -3.17 -0.01 3.05 1.67 -5.31 8.89 6.87 13.93 -0.93 1.59 6.02 -15.62 11.29 0.07 1.00 2.42 10.52 -1.87 -3.09 0.08 3.05 0.93 -5.93 8.17 6.97 13.93 -0.93 3.27 3.44 -15.62 9.82 0.07 0.18 -0.15 -0.03 -0.02 -0.08 -0.05 -0.00 -0.02 -0.34 -0.05 -0.04 -0.01 -0.02 0.04 0.05 -0.05 -0.14 -0.31 0.00 0.02 0.05 -0.12 -0.03 -0.00 -0.05 0.00 0.53 -0.06 0.01 -0.00 -0.08 -0.06 0.02 0.00 0.00 -0.01 0.00 -0.01 0.02 0.01 0.09 0.09 -0.04 0.00 -0.00 -0.01 0.03 -0.10 -0.00 -0.00 0.04 -0.00 -0.17 0.00 -0.00 0.00 0.13 0.23 -0.02 -0.01 0.09 0.04 0.02 -0.28 0.16 -0.03 0.54 0.22 -0.32 0.08 -0.75 -0.14 0.00 0.10 -0.09 -0.02 -0.01 0.15 -0.07 -0.01 -0.02 -0.25 -0.01 -0.03 0.01 -0.01 -0.15 0.30 -0.12 0.39 -0.09 0.00 0.01 0.08 -0.54 0.04 -0.00 -0.75 0.00 0.22 -0.06 0.01 -0.00 Benchmark : MSCI EAFE Index Gross Dividend 160 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Earnest Partners Quarter Ending 6/14 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 Singapore South Africa South Korea Spain Sweden Switzerland Taiwan United Kingdom United States 1.38 0.36 0.00 3.57 3.26 9.36 0.00 19.66 0.00 100.00 1.38 0.36 0.00 3.57 3.26 9.36 0.00 19.66 0.00 100.00 4.83 13.12 8.08 2.97 2.79 3.60 3.69 5.75 16.02 7.37 -0.14 2.38 6.26 4.37 1.07 0.00 1.36 2.79 3.78 8.24 2.38 18.43 3.83 100.00 1.07 0.00 0.00 2.79 2.32 2.90 0.00 10.86 43.74 100.00 6.98 7.25 -0.10 -3.50 1.88 17.12 6.94 2.61 3.30 7.92 7.25 -0.76 -6.51 1.66 17.12 12.11 2.61 4.07 -0.00 -0.03 -0.05 -0.03 -0.00 0.01 -0.09 0.00 -0.14 -1.04 -0.00 -0.01 0.01 0.04 0.07 -0.17 -0.30 -0.54 0.02 0.10 -0.23 -0.24 -0.07 0.41 0.62 0.10 0.65 0.02 -0.04 0.05 -0.25 -0.21 0.01 0.32 0.44 -0.34 -0.93 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 Earnest Partners Quarter Ending 6/14 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 15.57 12.11 6.96 8.05 4.53 15.71 22.86 12.92 1.29 0.00 100.00 6.92 8.16 12.94 11.78 11.01 10.45 25.47 4.54 4.97 3.76 100.00 2.10 2.54 6.18 0.05 4.79 14.30 3.48 -1.82 -1.87 4.07 11.62 3.66 2.47 3.59 6.34 5.65 2.76 1.32 4.02 7.19 4.37 -1.48 -0.13 0.26 -0.29 -0.07 1.36 0.16 -0.41 -0.08 0.00 -0.67 0.63 -0.03 0.11 0.03 -0.13 0.07 0.04 -0.25 0.01 -0.11 0.38 -0.85 -0.16 0.37 -0.26 -0.20 1.43 0.21 -0.66 -0.06 -0.11 -0.30 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 -0.15% [ Actual Return 3.91% ] - [ Buy Hold Return 4.07% ] 162 City of Clearwater Employees Pension Fund WHV as of 6/30/14 Canadian Pac Railway Schlumberger Ltd Canadian Natl Ry Co Bhp Billiton Ltd Agrium Inc Tenaris S A Weatherford Intl Plc Nestle S A Rio Tinto Plc Eaton Corp Plc GICS Sector % Port Industrials Energy Industrials Materials Materials Energy Energy Consumer Staples Materials Industrials 7.90 5.63 4.81 4.75 4.47 4.44 4.41 4.28 4.24 3.54 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 32.53 24.65 20.48 0.00 14.75 3.15 4.44 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 22.0 24.0 26.0 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 7.01 4.34 36,918 -3 2,588 39,502 9.33 5.14 36,136 -4 3,370 39,502 25.00 24.09 31,607 -6 7,901 39,502 6.89 8.59 32,371 -21 7,153 39,502 13.75 12.27 20,759 -26 18,769 39,502 3.03 2.21 29,002 -26 10,526 39,502 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 163 City of Clearwater Employees Pension Fund WHV as of 6/30/14 Cash & Equiv $2,099 5.31% Intl Equity $37,403 94.69% Periods from 4/08 to 6/14 Alpha Beta R-Squared -0.16 1.11 0.88 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 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 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 3.03 2.21 0.27 23.71 21.49 0.17 0.12 0.09 0.00 -0.05 Asset Allocation ($000) Risk/Return Analysis 164 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 6/14 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 Last 6 Years 8.39 5.72 4.42 3.14 0.42 7.01 14 4.34 51 31.70 25.34 21.91 16.92 8.92 25.00 26 24.09 31 28.84 23.06 19.44 14.74 7.21 17.87 62 21.59 32 15.62 11.16 8.32 5.74 -0.79 6.89 66 8.59 46 20.04 16.08 13.71 11.28 5.64 14.27 42 13.79 48 19.99 15.53 13.52 11.70 8.37 13.75 46 12.27 65 11.56 7.09 4.79 3.26 0.60 2.08 87 3.53 71 -5% 0% 5% 10% 15% 20% 25% 30% 35% w 1 w 1 w 1 w 1 w 1 w 1 w 1 165 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 6/30/14 YTD 2013 2012 2011 2010 2009 10.87 7.21 5.49 3.69 -0.32 9.33 9 5.14 54 34.21 27.08 21.64 15.88 3.63 14.10 83 23.29 41 26.80 21.29 18.60 15.86 6.67 16.97 66 17.90 56 0.26 -8.92 -12.44 -15.60 -22.34 -13.64 61 -11.73 42 26.86 18.71 13.17 9.07 3.16 17.58 28 8.21 78 78.78 45.58 35.69 27.76 11.82 55.98 15 32.46 60 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% w 1 w 1 w 1 w 1 w 1 w 1 166 City of Clearwater Employees Pension Fund June 30, 2014 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 6/14 3/14 12/13 9/13 6/13 15.62 11.16 8.32 5.74 -0.79 6.89 66 8.59 46 14.83 10.31 7.43 4.15 -3.53 3.41 77 7.72 45 15.73 10.92 8.20 5.08 -2.66 4.85 75 8.66 44 16.47 11.25 8.76 6.05 -1.12 7.45 63 8.97 46 17.75 13.01 10.57 8.28 2.28 10.90 46 10.55 50 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% w 1 w 1 w 1 w 1 w 1 WHV Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -8.0% -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% -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 -3.9 0.8 1.4 2.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI EAFE 167 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 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 6.89 66 19.22 75 8.5946 16.79 35 8.32 17.56 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 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 13.75 46 20.65 86 12.2765 17.96 43 13.52 18.23 168 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WHV Period Ending 6/14 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 37 37,402,821 64,981,888 32,108,731 2.23 19.65 16.95 0.00 2.16 53.23 4.12 9.33 898 63,978,074 9,420,285 3.13 17.42 17.90 1.00 1.68 86.18 15.37 6.92 Ten Largest Holdings Canadian Pac Railway Schlumberger Ltd Canadian Natl Ry Co Bhp Billiton Ltd Agrium Inc Tenaris S A Weatherford Intl Plc Nestle S A Rio Tinto Plc Eaton Corp Plc Market Value % of Portfolio Quarterly Ret 2,952,582 2,105,408 1,797,803 1,776,278 1,670,415 1,657,323 1,648,525 1,600,002 1,583,619 1,323,405 7.90 5.63 4.81 4.75 4.47 4.44 4.41 4.28 4.24 3.54 20.63 21.44 16.08 1.00 -5.28 8.04 32.49 6.02 -2.78 3.43 Ten Best Performers Weatherford Intl Plc Suncor Energy Inc Ne Schlumberger Ltd Canadian Pac Railway Canadian Nat Res Ltd Nabors Industries Lt Yara Intl Asa Canadian Natl Ry Co Ingersoll-Rand Plc Allegion Pub Ltd Co Quarterly Ret 32.49 22.60 21.44 20.63 20.24 19.33 16.42 16.08 9.65 8.80 Ten Worst Performers Core Laboratories N Fibria Celulose S A Ubs Ag Agrium Inc Bunge Limited Axa Sa Rio Tinto Plc Vale S A Finning Tractor & Eq Bhp Billiton Ltd Quarterly Ret -15.62 -12.12 -10.35 -5.28 -4.50 -4.38 -2.78 -2.06 -0.27 1.00 169 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 6/14 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 Hong Kong Ireland Isle of Man Israel Italy Japan Luxembourg Mexico Netherland Antilles Netherlands New Zealand Norway Portugal Scotland Singapore South Africa Spain 8.37 0.28 1.22 0.13 0.00 0.00 0.19 0.41 0.06 1.35 0.91 9.74 9.42 2.51 0.33 0.05 0.53 2.49 19.76 0.29 0.02 0.00 3.28 0.11 0.69 0.19 0.07 1.38 0.36 3.57 8.37 0.28 1.22 0.13 0.00 0.00 0.19 0.41 0.06 1.35 0.91 9.74 9.42 2.51 0.33 0.05 0.53 2.49 19.76 0.29 0.02 0.00 3.28 0.11 0.69 0.19 0.07 1.38 0.36 3.57 0.92 0.50 6.30 17.97 1.24 7.55 -1.26 4.48 6.22 3.03 2.89 8.92 -8.32 0.39 0.69 1.72 4.86 1.20 3.92 0.43 -0.65 13.57 0.12 4.69 4.83 13.12 8.08 2.59 -0.17 5.60 15.75 1.32 10.31 -1.18 3.94 5.51 2.35 2.21 9.02 -8.93 1.26 2.49 1.05 6.60 3.48 6.58 -0.20 0.25 10.80 -0.55 7.37 5.75 16.02 7.37 5.02 0.00 0.00 5.77 2.53 27.56 3.51 0.00 0.00 0.00 0.00 0.65 2.94 0.00 3.04 0.00 0.00 0.00 0.00 4.44 0.00 4.97 6.98 0.00 0.11 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 0.00 0.00 1.00 10.02 -2.36 11.93 3.77 -4.38 7.10 9.65 8.04 21.44 -7.14 16.42 1.00 10.02 -2.36 11.93 3.77 -4.38 7.10 9.65 8.04 21.44 -7.14 16.42 0.09 0.01 -0.03 0.81 -0.09 -1.02 -0.08 -0.02 0.00 -0.01 -0.02 0.06 0.05 -0.13 -0.33 0.00 0.02 0.05 -0.23 -0.10 -0.00 -0.18 -0.12 0.00 -0.06 0.01 -0.00 -0.02 -0.03 -0.16 -0.08 0.00 0.02 0.00 0.00 -0.01 0.00 0.02 0.01 0.13 0.13 0.01 0.00 -0.00 -0.01 0.03 -0.21 -0.00 -0.00 0.04 -0.00 0.02 0.00 -0.00 -0.00 -0.01 0.05 0.00 -0.46 -0.06 3.29 0.09 -0.05 0.12 0.55 0.30 1.07 -0.53 0.00 0.01 0.01 -0.02 0.35 -0.15 2.27 0.01 -0.02 0.00 0.01 -0.01 0.14 0.30 -0.12 0.22 0.00 0.01 0.08 -0.44 0.20 -0.00 0.88 -0.61 0.00 -0.03 0.01 -0.00 -0.02 -0.04 -0.11 Benchmark : MSCI EAFE Index Gross Dividend 170 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WHV Quarter Ending 6/14 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 Sweden Switzerland United Kingdom United States 3.26 9.36 19.66 0.00 100.00 3.26 9.36 19.66 0.00 100.00 2.97 2.79 3.60 3.69 -0.14 2.38 6.26 4.37 0.00 14.24 13.64 4.60 100.00 0.00 0.00 0.00 100.00 100.00 10.73 2.33 4.51 7.46 10.73 2.33 4.51 7.46 0.02 -0.04 0.00 -0.17 -1.72 0.12 0.10 -0.39 -0.68 -0.68 1.13 -0.17 0.21 5.49 0.15 1.19 -0.56 -0.64 3.09 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] 171 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis WHV Quarter Ending 6/14 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 31.14 26.47 19.27 0.00 15.22 3.16 4.74 0.00 0.00 0.00 100.00 6.92 8.16 12.94 11.78 11.01 10.45 25.47 4.54 4.97 3.76 100.00 12.12 0.39 13.80 4.43 6.48 0.93 7.46 11.62 3.66 2.47 3.59 6.34 5.65 2.76 1.32 4.02 7.19 4.37 0.16 -0.87 2.18 0.00 -0.29 0.03 -0.09 0.00 0.00 0.00 1.12 1.76 -0.13 -0.12 0.09 0.08 -0.09 0.33 0.14 0.02 -0.11 1.97 1.91 -1.00 2.06 0.09 -0.21 -0.07 0.25 0.14 0.02 -0.11 3.09 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 -0.11% [ Actual Return 7.35% ] - [ Buy Hold Return 7.46% ] 172 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 6/30/14 -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 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 5.97 6.71 38,700 0 2,308 41,008 6.91 6.32 38,359 0 2,649 41,008 15.67 14.68 35,453 0 5,555 41,008 1.14 -0.06 31,008 7,692 2,307 41,008 10.44 9.58 19,527 7,536 13,945 41,008 1.61 0.73 8,277 7,536 25,195 41,008 Portfolio Performance (%) 173 City of Clearwater Employees Pension Fund Eaton Vance Mgmt as of 6/30/14 Cash & Equiv $0 0.00% Intl Equity $41,008 100.00% Periods from 4/08 to 6/14 Alpha Beta R-Squared 0.15 0.98 0.98 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 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 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 1.61 0.73 0.27 24.58 25.80 0.17 0.05 0.02 0.00 0.09 Asset Allocation ($000) Risk/Return Analysis 174 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 6/14 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 Last 6 Years 10.03 7.77 6.82 5.68 1.83 5.97 72 6.71 52 23.19 18.04 14.41 11.44 4.87 15.67 39 14.68 48 21.27 12.53 9.69 7.92 4.83 10.26 44 8.80 56 11.30 4.14 1.94 -0.62 -3.10 1.14 56 -0.06 69 14.22 10.09 7.86 6.02 2.81 7.22 62 6.36 71 18.20 13.50 11.39 9.05 6.82 10.44 64 9.58 69 11.08 6.96 4.18 2.12 -0.60 2.87 67 2.21 74 -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% v 1 v 1 v 1 v 1 v 1 v 1 v 1 175 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 6/30/14 YTD 2013 2012 2011 2010 2009 12.03 8.59 7.06 5.20 0.66 6.91 51 6.32 59 12.47 1.94 -1.70 -4.99 -7.49 1.22 30 -2.27 52 29.81 23.52 20.02 16.67 8.09 18.55 63 18.62 63 3.58 -12.46 -17.77 -21.53 -25.62 -19.27 65 -18.17 54 29.17 24.10 20.28 17.49 8.50 23.33 29 19.19 61 92.03 81.18 75.63 68.30 27.05 67.01 76 79.02 32 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% v 1 v 1 v 1 v 1 v 1 v 1 176 City of Clearwater Employees Pension Fund June 30, 2014 Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios High 1st Qt Median 3rd Qt Low v Eaton Vance Mgmt Return Rank 1 MSCI Emg Mkts Return Rank 6/14 3/14 12/13 9/13 6/13 11.30 4.14 1.94 -0.62 -3.10 1.14 56 -0.06 69 17.57 2.89 0.05 -2.96 -6.83 -0.98 59 -2.54 72 16.26 2.66 0.48 -2.34 -5.99 -1.05 62 -1.74 67 16.96 4.21 1.72 -0.80 -5.02 0.54 61 -0.00 65 17.37 8.73 5.89 3.20 -1.38 4.54 64 3.72 71 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% v 1 v 1 v 1 v 1 v 1 Eaton Vance Mgmt Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 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 -0.4 0.7 1.3 -0.7 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. MSCI Emg Mkts 177 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 10.0 11.8 13.6 15.4 17.2 19.0 20.8 22.6 24.4 26.2 28.0 -12.0 -9.2 -6.3 -3.5 -0.7 2.0 4.8 7.6 10.4 13.2 16.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 6.89 11 19.22 48 8.59 7 16.79 28 1.94 19.36 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 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 w 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w WHV 1 MSCI EAFE Median 13.75 21 20.65 66 12.2737 17.96 26 11.39 20.11 178 City of Clearwater Employees Pension Fund Fixed Income Comp as of 6/30/14 United States Treas United States Treas FNMA Ci 15 - Tba Jul United States Treas United States Treas FNMA Cl 30 - Tba Aug United States Treas United States Treas United States Treas 4283a-Ew Sector % Port Government Government Mortgage Government Government Mortgage Government Government Government Mortgage 7.61 5.85 1.73 1.46 1.38 1.36 1.35 1.31 1.19 1.09 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 14.85 28.01 15.65 32.50 1.62 2.97 2.07 1.42 0.91 -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 2.20 2.04 215,002 -9,215 4,683 210,470 4.46 3.93 209,340 -8,214 9,344 210,470 5.69 4.37 207,063 -8,334 11,742 210,470 4.38 3.67 191,806 -7,857 26,521 210,470 6.00 4.85 165,102 -14,836 60,204 210,470 5.57 4.93 176,642 -14,836 48,664 210,470 6.68 6.89 59,224 -14,836 166,082 210,470 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 179 City of Clearwater Employees Pension Fund Fixed Income Comp as of 6/30/14 Domestic Fixed $224,969 106.89% Other $0 0.00% Domestic Equity $4 0.00% Cash & Equiv $-14,502 -6.89% Periods from 12/87 to 6/14 Alpha Beta R-Squared 0.26 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 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 6.68 6.89 3.68 3.11 4.05 1.27 0.96 0.79 0.00 -0.10 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 180 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/14 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 4.92 2.54 2.07 1.28 0.15 2.20 43 2.04 51 13.75 7.94 4.88 3.60 0.84 5.69 36 4.37 61 11.57 5.29 2.88 1.71 -0.01 3.33 40 1.81 71 10.39 6.59 4.33 3.41 0.91 4.38 48 3.67 67 11.25 6.68 4.65 3.55 1.12 4.59 50 3.72 70 13.72 8.56 6.06 4.64 1.41 6.00 50 4.85 69 10.82 7.34 5.95 4.51 1.45 6.19 45 5.05 65 9.72 7.31 5.90 4.85 1.52 6.14 44 5.35 66 9.52 7.08 5.89 4.93 2.41 6.17 43 5.44 64 8.63 6.22 5.20 4.35 2.38 5.48 44 4.73 66 8.70 6.36 5.39 4.53 2.73 5.57 46 4.93 66 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% F1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 181 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 11.50 5.25 3.96 2.48 0.33 4.46 38 3.93 51 9.60 1.86 -0.66 -2.00 -8.48 -0.75 51 -2.02 76 16.80 10.36 6.77 4.20 0.99 6.53 52 4.22 74 15.81 7.86 6.19 3.73 0.01 5.94 53 7.84 25 16.19 10.13 7.27 5.76 0.69 7.37 48 6.54 63 32.31 14.33 9.20 5.54 -1.54 12.37 35 5.93 71 9.81 5.22 1.81 -6.38 -25.82 2.54 46 5.24 24 10.51 7.53 6.54 5.04 2.34 5.94 61 6.96 40 11.68 5.36 4.57 4.13 2.13 5.05 31 4.33 65 6.77 3.19 2.62 2.11 1.36 2.59 52 2.43 62 10.86 5.59 4.51 3.35 1.36 3.93 67 4.34 56 -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% F1 F1 F1 F1 F1 F 1 F 1 F1 F1 F1 F1 182 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 6/30/14 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 1.14 -3.88 1.00 0.53 2.21 5.69 5.69 1.88 0.98 0.33 0.93 3.00 5.73 0.53 2.40 1 3 -0.14 2.04 4.37 4.37 2.08 2.07 1 11 1.07 0.53 0.83 -2.13 2.32 -0.75 7.10 2.49 0.70 0.44 0.72 1.73 6.19 1.67 0.40 3 9 -2.32 3.82 -2.02 7.48 3.08 1.17 2 18 1.13 0.46 0.80 -2.13 5.40 -0.75 11.86 2.98 0.81 0.49 0.77 1.98 7.24 1.58 0.69 4 16 -2.32 3.82 -2.02 9.50 3.24 1.47 17 89 0.90 0.33 0.51 -2.54 5.72 -0.75 15.87 3.11 0.60 0.26 0.58 0.96 5.00 2.54 -0.10 22 84 -2.87 7.96 -3.23 18.48 4.05 0.79 183 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 F 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp 1 BC Agg Median 4.38 48 2.49 27 3.6767 3.08 43 4.33 3.21 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 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 F 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp 1 BC Agg Median 6.00 50 2.98 27 4.8569 3.24 37 6.06 3.65 184 City of Clearwater Employees Pension Fund Dodge & Cox as of 6/30/14 United States Treas United States Treas United States Treas United States Treas 4283a-Ew United States Treas 2676h-Pz Aol Time Warner Inc FNMA Pool Al1849 Fnr2002-W7- Sector % Port Government Government Government Government Mortgage Government Mortgage Industrials Mortgage Mortgage 2.55 2.35 2.28 2.07 1.90 1.66 1.47 1.46 1.35 1.33 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 19.51 14.30 18.71 34.87 2.50 4.14 3.99 0.89 1.08 -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 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 2.16 2.04 117,996 -1 2,549 120,544 4.52 3.93 115,334 -2 5,212 120,544 6.55 4.37 113,143 -4 7,406 120,544 4.96 3.67 108,989 -5,013 16,568 120,544 6.63 4.85 93,893 -7,429 34,080 120,544 5.88 4.93 74,301 -7,429 53,672 120,544 5.50 4.60 75,656 -7,429 52,317 120,544 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 185 City of Clearwater Employees Pension Fund Dodge & Cox as of 6/30/14 Cash & Equiv $2,939 2.44% Domestic Fixed $117,605 97.56% Periods from 2/04 to 6/14 Alpha Beta R-Squared 0.35 0.83 0.58 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 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 d 1 T Annualized Standard Deviation% d Dodge & Cox 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.50 4.60 1.61 3.40 3.34 0.56 1.15 0.90 0.00 0.33 Asset Allocation ($000) Risk/Return Analysis 186 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/14 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 Last 10 Years 4.92 2.54 2.07 1.28 0.15 2.16 45 2.04 51 13.75 7.94 4.88 3.60 0.84 6.55 30 4.37 61 11.57 5.29 2.88 1.71 -0.01 4.41 30 1.81 71 10.39 6.59 4.33 3.41 0.91 4.96 38 3.67 67 11.25 6.68 4.65 3.55 1.12 5.17 38 3.72 70 13.72 8.56 6.06 4.64 1.41 6.63 37 4.85 69 10.82 7.34 5.95 4.51 1.45 6.68 35 5.05 65 9.72 7.31 5.90 4.85 1.52 6.43 38 5.35 66 9.52 7.08 5.89 4.93 2.41 6.48 35 5.44 64 8.63 6.22 5.20 4.35 2.38 5.83 35 4.73 66 8.70 6.36 5.39 4.53 2.73 5.88 36 4.93 66 -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 d 1 d 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 d Dodge & Cox Net Ret Rank 1 BC Agg Net Ret Rank 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 11.50 5.25 3.96 2.48 0.33 4.52 36 3.93 51 9.60 1.86 -0.66 -2.00 -8.48 0.65 31 -2.02 76 16.80 10.36 6.77 4.20 0.99 7.85 41 4.22 74 15.81 7.86 6.19 3.73 0.01 5.10 61 7.84 25 16.19 10.13 7.27 5.76 0.69 7.53 46 6.54 63 32.31 14.33 9.20 5.54 -1.54 14.53 24 5.93 71 9.81 5.22 1.81 -6.38 -25.82 1.37 52 5.24 24 10.51 7.53 6.54 5.04 2.34 5.47 67 6.96 40 11.68 5.36 4.57 4.13 2.13 5.62 21 4.33 65 6.77 3.19 2.62 2.11 1.36 2.40 63 2.43 62 -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% d1 d 1 d 1 d 1 d1 d 1 d 1 d1 d1 d1 188 City of Clearwater Employees Pension Fund June 30, 2014 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 6/14 3/14 12/13 9/13 6/13 10.39 6.59 4.33 3.41 0.91 4.96 38 3.67 67 9.71 5.95 4.19 3.40 0.80 4.87 36 3.75 64 9.52 5.60 3.99 3.17 0.85 4.49 37 3.26 70 9.35 5.09 3.73 2.76 0.81 4.15 36 2.86 71 10.93 6.46 4.55 3.35 0.83 4.71 42 3.51 70 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% d 1 d 1 d 1 d 1 d 1 Dodge & Cox Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 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 0.3 1.2 0.5 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 Dodge & Cox Quarterly Periods Ending 6/30/14 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 1.19 -8.14 1.00 0.82 2.31 6.55 6.55 1.49 0.86 0.67 0.77 4.36 7.56 1.01 2.08 1 3 -0.14 2.04 4.37 4.37 2.08 2.07 1 11 1.10 0.07 0.75 -1.89 2.67 0.47 8.00 2.46 0.50 0.75 0.37 1.99 9.72 2.55 0.47 3 9 -2.32 3.82 -2.02 7.48 3.08 1.17 1 19 1.17 0.01 0.70 -1.89 5.73 0.47 12.68 2.89 0.65 0.83 0.52 2.25 9.96 2.34 0.72 4 16 -2.32 3.82 -2.02 9.50 3.24 1.47 8 33 1.08 0.56 0.61 -2.88 6.98 -0.26 17.78 3.65 0.83 0.35 0.58 1.06 4.66 2.61 0.33 12 29 -2.44 4.57 -2.02 10.56 3.45 0.85 190 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 d 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox 1 BC Agg Median 4.96 38 2.46 26 3.6767 3.08 43 4.33 3.21 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 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 d 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox 1 BC Agg Median 6.63 37 2.89 25 4.8569 3.24 37 6.06 3.65 191 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 6/14 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 211 117,605,079 2.25 12.92 4.79 5.31 0.20 4.62 6.84 8,818 2.22 7.69 3.30 5.88 -0.07 5.60 7.69 Yield to Maturity 5+ 4.2% 4 - 514.5% 3 - 415.2% 2 - 330.3% 1 - 218.2% 0 - 117.7% Time to Maturity 10+ 48.6% 7 - 1011.9% 5 - 77.3% 3 - 515.2% 1 - 313.9% 0 - 13.2% Coupon 11+ 0.0% 9 - 110.2% 7 - 912.0% 5 - 745.3% 3 - 523.0% 0 - 319.6% Quality NR 4.6% B 0.5% BA 3.1% BAA 30.8% A 11.3% AA 1.6% AAA 32.6% GOVT 15.6% Duration 8+ 16.0% 6 - 812.2% 4 - 628.3% 3 - 420.6% 1 - 319.4% 0 - 13.6% Effective Duration 8+ 15.0% 6 - 811.3% 4 - 616.0% 3 - 410.8% 1 - 339.7% 0 - 17.1% 192 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 6/30/14 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 14.30 12.54 1.76 0.76 --- --- 0.76 --- --- 33.13 --- 13.82 18.62 0.69 --- --- --- 48.19 --- --- --- 1.27 --- --- 0.90 0.37 0.33 --- --- --- --- --- --- --- --- 1.60 --- --- --- 5.14 3.70 --- 1.44 --- 2.17 --- --- --- --- --- 3.99 --- --- 11.29 --- --- --- 30.76 13.28 2.49 14.46 0.53 --- --- --- --- --- --- --- --- --- 30.76 --- --- --- 3.05 0.93 1.18 0.94 --- --- --- --- --- --- --- --- --- --- 3.05 --- --- --- 0.47 --- 0.47 --- --- --- --- --- --- --- --- --- --- --- 0.47 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 1.81 0.80 --- 1.00 --- --- 1.74 0.08 1.13 0.53 --- --- --- 1.08 4.63 14.30 12.54 1.76 43.26 18.71 4.14 19.50 0.90 2.50 34.87 0.08 14.95 19.15 0.69 3.99 --- 1.08 100.00 193 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 6/14 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 20.06 11.22 19.07 35.33 2.65 4.65 5.89 1.14 0.00 100.00 12.13 40.33 11.81 29.92 0.43 2.42 0.01 2.95 0.00 100.00 2.93 0.23 3.04 2.03 2.57 4.29 3.98 1.09 2.43 1.78 1.41 2.94 2.56 3.68 3.55 1.78 2.10 0.00 2.06 0.23 -0.13 0.02 -0.19 -0.03 0.03 0.13 -0.01 0.00 0.05 -0.02 0.19 0.06 0.03 0.04 0.03 -0.02 -0.00 -0.00 0.31 0.21 0.06 0.08 -0.16 0.01 0.07 0.11 -0.01 0.00 0.36 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 -0.22% [ Actual Return 2.21% ] - [ Buy Hold Return 2.43% ] 194 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 6/30/14 United States Treas United States Treas FNMA Ci 15 - Tba Jul United States Treas FNMA Cl 30 - Tba Aug GNMA Ii Sf 30 - Tba Federal Natl Mtg Ass United States Treas United States Treas FNMA Ci 15 - Tba Jul Sector % Port Government Government Mortgage Government Mortgage Mortgage Government Government Government Mortgage 17.10 13.15 3.88 3.09 3.05 2.34 2.32 2.22 2.14 1.70 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 9.79 42.89 12.33 29.93 0.66 1.70 0.00 1.99 0.72 -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 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 2.33 2.04 91,467 -1 2,133 93,599 4.61 3.93 89,472 -1 4,128 93,599 4.85 4.37 89,279 -10 4,330 93,599 3.81 3.67 83,727 -53 9,926 93,599 5.26 4.85 72,517 -66 21,148 93,599 5.06 4.73 74,568 -66 19,097 93,599 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 195 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 6/30/14 Domestic Fixed $107,364 114.71% Other $0 0.00% Cash & Equiv $-13,764 -14.71% Periods from 9/04 to 6/14 Alpha Beta R-Squared 0.02 1.08 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 5.06 4.73 1.63 3.65 3.28 0.99 0.94 0.94 0.00 0.30 Asset Allocation ($000) Risk/Return Analysis 196 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 6/14 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 Last 9 Years 4.92 2.54 2.07 1.28 0.15 2.33 36 2.04 51 13.75 7.94 4.88 3.60 0.84 4.85 52 4.37 61 11.57 5.29 2.88 1.71 -0.01 2.17 61 1.81 71 10.39 6.59 4.33 3.41 0.91 3.81 62 3.67 67 11.25 6.68 4.65 3.55 1.12 3.97 64 3.72 70 13.72 8.56 6.06 4.64 1.41 5.26 61 4.85 69 10.82 7.34 5.95 4.51 1.45 5.57 55 5.05 65 9.72 7.31 5.90 4.85 1.52 5.74 55 5.35 66 9.52 7.08 5.89 4.93 2.41 5.79 54 5.44 64 8.63 6.22 5.20 4.35 2.38 5.08 54 4.73 66 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% w1 w1 w1 w1 w1 w1 w1 w1 w1 w1 197 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 6/30/14 YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 11.50 5.25 3.96 2.48 0.33 4.61 35 3.93 51 9.60 1.86 -0.66 -2.00 -8.48 -2.46 84 -2.02 76 16.80 10.36 6.77 4.20 0.99 5.07 64 4.22 74 15.81 7.86 6.19 3.73 0.01 7.23 37 7.84 25 16.19 10.13 7.27 5.76 0.69 7.09 52 6.54 63 32.31 14.33 9.20 5.54 -1.54 9.24 49 5.93 71 9.81 5.22 1.81 -6.38 -25.82 3.92 38 5.24 24 10.51 7.53 6.54 5.04 2.34 6.51 50 6.96 40 11.68 5.36 4.57 4.13 2.13 4.66 45 4.33 65 6.77 3.19 2.62 2.11 1.36 2.77 42 2.43 62 -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% w1 w1 w1 w1 w1 w 1 w1 w1 w1 w1 198 City of Clearwater Employees Pension Fund June 30, 2014 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 6/14 3/14 12/13 9/13 6/13 10.39 6.59 4.33 3.41 0.91 3.81 62 3.67 67 9.71 5.95 4.19 3.40 0.80 3.78 63 3.75 64 9.52 5.60 3.99 3.17 0.85 3.19 74 3.26 70 9.35 5.09 3.73 2.76 0.81 2.88 70 2.86 71 10.93 6.46 4.55 3.35 0.83 3.68 65 3.51 70 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% w 1 w 1 w 1 w 1 w 1 Western Asset Management Co. Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 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 -0.2 0.0 0.4 0.3 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 199 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 6/30/14 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 1.12 1.33 0.50 -0.18 2.33 4.85 4.85 2.55 1.19 -0.08 0.99 1.88 4.03 0.52 0.90 1 3 -0.14 2.04 4.37 4.37 2.08 2.07 3 9 1.05 1.11 0.50 -2.45 2.94 -2.46 7.15 3.01 0.96 0.07 0.95 1.24 3.91 0.71 0.19 3 9 -2.32 3.82 -2.02 7.48 3.08 1.17 4 16 1.07 1.02 0.60 -2.45 4.64 -2.46 10.57 3.33 1.01 0.09 0.96 1.55 5.11 0.68 0.57 4 16 -2.32 3.82 -2.02 9.50 3.24 1.47 12 27 1.09 1.19 0.59 -2.45 5.22 -2.46 14.60 3.65 1.08 0.02 0.92 0.94 3.18 1.10 0.30 11 28 -2.32 4.57 -2.02 10.56 3.28 0.94 200 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 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co. 1 BC Agg Median 3.81 62 3.01 39 3.6767 3.08 43 4.33 3.21 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 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 w1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co. 1 BC Agg Median 5.26 61 3.33 40 4.8569 3.24 37 6.06 3.65 201 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 6/14 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 388 107,363,602 1.88 12.92 2.84 5.61 0.08 4.45 7.02 8,818 2.22 7.69 3.30 5.88 -0.07 5.60 7.69 Yield to Maturity 5+ 2.6% 4 - 56.3% 3 - 416.8% 2 - 324.9% 1 - 212.6% 0 - 136.8% Time to Maturity 10+ 43.4% 7 - 107.8% 5 - 75.3% 3 - 55.6% 1 - 324.5% 0 - 113.3% Coupon 11+ 0.1% 9 - 110.4% 7 - 92.2% 5 - 721.0% 3 - 531.0% 0 - 345.3% Quality NR 1.5% BA 0.2% BAA 15.7% A 9.1% AA 2.6% AAA 29.4% GOVT 41.4% Duration 8+ 18.2% 6 - 813.3% 4 - 622.0% 3 - 48.3% 1 - 325.2% 0 - 113.0% Effective Duration 8+ 14.3% 6 - 86.6% 4 - 619.5% 3 - 48.9% 1 - 334.2% 0 - 116.6% 202 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 6/30/14 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 41.20 38.30 2.90 --- --- --- --- --- --- 29.60 6.35 3.12 16.72 3.42 --- --- --- 70.81 1.31 --- 1.31 1.06 0.39 --- 0.52 0.14 0.04 --- --- --- --- --- --- --- 0.19 2.59 0.32 --- 0.32 8.53 4.70 0.45 2.64 0.73 0.28 --- --- --- --- --- --- --- --- 9.14 0.06 --- 0.06 15.33 7.24 1.24 6.13 0.73 0.33 --- --- --- --- --- --- --- --- 15.72 --- --- --- 0.25 --- --- 0.25 --- --- --- --- --- --- --- --- --- --- 0.25 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 0.64 --- --- 0.25 0.39 --- 0.32 0.23 0.10 --- --- --- --- 0.53 1.50 42.89 38.30 4.59 25.81 12.33 1.69 9.79 1.99 0.65 29.92 6.58 3.22 16.72 3.42 --- --- 0.72 100.00 203 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 6/14 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 9.72 43.88 12.36 29.12 0.43 1.94 0.00 2.01 0.54 100.00 12.13 40.33 11.81 29.92 0.43 2.42 0.01 2.95 0.00 100.00 2.52 0.93 3.08 2.60 3.81 3.36 0.00 3.48 1.94 1.78 1.41 2.94 2.56 3.68 3.55 1.78 2.10 0.00 2.06 0.07 -0.21 0.02 0.01 0.00 -0.00 -0.00 0.03 0.00 -0.08 0.01 -0.02 0.00 -0.00 -0.00 -0.01 0.00 -0.00 -0.01 -0.03 0.08 -0.23 0.02 0.01 0.00 -0.01 0.00 0.03 -0.01 -0.12 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 0.06% [ Actual Return 2.00% ] - [ Buy Hold Return 1.94% ] 204 City of Clearwater Employees Pension Fund Real Estate Comp as of 6/30/14 Simon Ppty Group Inc Prologis Inc Public Storage Inc Avalonbay Cmntys Inc Equity Residential P Vornado Rlty Tr Hcp Inc Health Care Reit Inc Boston Properties In Duke Realty Corp. GICS Sector % Port Financials Financials Financials Financials Financials Financials Financials Financials Financials Financials 10.21 5.82 5.52 4.91 4.50 4.29 4.12 4.05 3.47 3.24 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 1.19 0.00 0.00 98.81 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 22.0 24.0 26.0 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 4.56 5.81 86,643 -700 3,927 89,870 11.47 13.77 81,344 -773 9,299 89,870 12.41 13.58 81,151 -1,265 9,984 89,870 9.75 12.16 68,565 -823 22,128 89,870 22.52 23.52 33,882 -2,712 58,700 89,870 4.67 5.58 19,347 -2,712 73,235 89,870 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 205 City of Clearwater Employees Pension Fund Real Estate Comp as of 6/30/14 Cash & Equiv $5,444 6.06% Domestic Equity $43,890 48.84% Real Estate $40,535 45.10% Periods from 4/08 to 6/14 Alpha Beta R-Squared -0.18 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 5.5 6.0 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 4.67 5.58 0.27 29.22 29.54 0.17 0.15 0.18 0.00 -0.29 Asset Allocation ($000) Risk/Return Analysis 206 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/14 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 Last 6 Years 8.71 6.89 3.05 1.91 -1.98 4.56 32 5.81 29 19.95 14.61 12.65 8.84 -6.12 12.41 54 13.58 37 17.44 13.66 11.23 8.57 -0.55 9.77 66 11.62 45 16.49 12.49 10.68 7.70 -2.54 9.75 61 12.16 28 19.94 15.79 13.50 9.03 -1.30 14.89 35 16.50 21 23.84 12.61 9.23 4.52 -5.71 22.52 10 23.52 8 9.42 5.50 1.54 -0.75 -10.77 6.93 17 7.72 13 -15% -10% -5% 0% 5% 10% 15% 20% 25% R 1 R 1 R 1 R 1 R 1 R 1 R 1 207 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 6/30/14 YTD 2013 2012 2011 2010 2009 18.05 11.61 6.08 4.19 -5.29 11.47 26 13.77 15 17.59 13.23 8.76 2.71 -8.19 6.29 58 6.02 60 29.13 16.89 11.24 4.94 -6.83 11.69 45 15.41 28 24.92 15.96 10.85 2.35 -15.56 8.85 57 11.62 48 29.86 18.42 13.55 1.40 -23.74 30.51 4 24.96 11 32.50 -2.40 -26.83 -31.92 -47.55 24.68 12 29.20 9 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% R 1 R 1 R 1 R 1 R 1 R 1 208 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 6/30/14 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 0.90 0.59 0.50 -0.42 6.60 12.41 12.41 6.33 0.81 0.33 0.98 1.95 15.25 1.89 -0.61 1 3 -0.70 7.52 13.58 13.58 7.98 1.70 2 10 0.83 0.97 0.33 -8.90 9.65 6.32 20.74 9.44 0.88 -0.23 0.98 1.03 10.96 1.69 -1.37 2 10 -8.94 11.30 6.02 25.41 10.57 1.14 3 17 0.94 0.86 0.40 -8.90 33.55 6.21 58.46 16.68 0.94 0.10 0.98 1.34 23.84 2.41 -0.41 3 17 -8.94 35.93 6.02 56.07 17.59 1.33 5 19 0.95 0.99 0.42 -37.93 33.98 -45.85 118.01 31.36 0.99 -0.17 0.99 0.21 6.75 2.92 -0.29 5 19 -40.40 35.93 -45.65 115.40 31.48 0.24 209 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 2.2 4.4 6.6 8.8 11.0 13.2 15.4 17.6 19.8 22.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 R 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Real Estate Comp 1 Policy Index Median 9.75 61 9.44 57 12.1628 10.57 60 10.68 7.78 An n u a l i z e d R a t e o f R e t u r n 0.0 5.0 10.0 15.0 20.0 25.0 30.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 R 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank R Real Estate Comp 1 Policy Index Median 22.52 10 16.68 63 23.52 8 17.59 68 9.23 12.29 210 City of Clearwater Employees Pension Fund Security Capital as of 6/30/14 Simon Ppty Group Inc Prologis Inc Public Storage Inc Avalonbay Cmntys Inc Equity Residential P Vornado Rlty Tr Hcp Inc Health Care Reit Inc Boston Properties In Duke Realty Corp. GICS Sector % Port Financials Financials Financials Financials Financials Financials Financials Financials Financials Financials 10.21 5.82 5.52 4.91 4.50 4.29 4.12 4.05 3.47 3.24 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 1.19 0.00 0.00 98.81 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 22.0 24.0 26.0 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 7.03 7.22 46,774 -5,700 3,259 44,332 18.38 17.93 42,289 -5,701 7,743 44,332 13.41 13.77 45,132 -6,645 5,845 44,332 10.71 11.55 46,098 -15,456 13,689 44,332 23.62 24.07 33,882 -37,456 47,906 44,332 5.43 5.90 19,347 -37,456 62,441 44,332 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 211 City of Clearwater Employees Pension Fund Security Capital as of 6/30/14 Cash & Equiv $442 1.00% Domestic Equity $43,890 99.00% Periods from 4/08 to 6/14 Alpha Beta R-Squared -0.08 1.00 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 5.5 6.0 6.5 s1 T Annualized Standard Deviation% s Security Capital 1 Wilshire RESI T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.43 5.90 0.27 30.77 31.03 0.17 0.17 0.18 0.00 -0.17 Asset Allocation ($000) Risk/Return Analysis 212 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/14 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 Last 6 Years 8.71 6.89 3.05 1.91 -1.98 7.03 19 7.22 18 19.95 14.61 12.65 8.84 -6.12 13.41 40 13.77 34 17.44 13.66 11.23 8.57 -0.55 10.59 57 11.04 54 16.49 12.49 10.68 7.70 -2.54 10.71 49 11.55 42 19.94 15.79 13.50 9.03 -1.30 16.19 22 17.15 13 23.84 12.61 9.23 4.52 -5.71 23.62 8 24.07 4 9.42 5.50 1.54 -0.75 -10.77 7.73 13 8.12 11 -15% -10% -5% 0% 5% 10% 15% 20% 25% s 1 s 1 s 1 s 1 s 1 s 1 s 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 s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank 6/30/14 YTD 2013 2012 2011 2010 2009 18.05 11.61 6.08 4.19 -5.29 18.38 3 17.93 5 17.59 13.23 8.76 2.71 -8.19 1.60 83 2.15 80 29.13 16.89 11.24 4.94 -6.83 16.22 26 17.55 22 24.92 15.96 10.85 2.35 -15.56 6.86 64 8.56 59 29.86 18.42 13.55 1.40 -23.74 31.62 2 29.12 6 32.50 -2.40 -26.83 -31.92 -47.55 24.68 12 29.20 9 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% s 1 s 1 s 1 s 1 s 1 s 1 214 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 5.0 10.0 15.0 20.0 25.0 30.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Security Capital 1 Wilshire RESI Median 23.62 8 19.26 78 24.07 4 20.02 84 9.23 12.29 An n u a l i z e d R a t e o f R e t u r n 0.0 5.0 10.0 15.0 20.0 25.0 30.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 s 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/14 Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Security Capital 1 Wilshire RESI Median 23.62 8 19.26 78 24.07 4 20.02 84 9.23 12.29 215 City of Clearwater Employees Pension Fund June 30, 2014 Cumulative Performance Comparison Total Returns of Real Estate Portfolios High 1st Qt Median 3rd Qt Low s Security Capital Net Ret Rank 1 Wilshire RESI Net Ret Rank 6/14 3/14 12/13 9/13 6/13 16.49 12.49 10.68 7.70 -2.54 10.71 49 11.55 42 24.99 14.19 10.68 7.09 -6.32 9.42 62 10.38 56 25.75 14.48 10.59 6.91 -6.11 8.06 67 9.24 60 25.61 15.27 11.73 7.17 -4.75 11.21 55 12.43 42 26.90 17.03 13.41 6.26 -6.68 17.13 24 18.30 17 -10% -5% 0% 5% 10% 15% 20% 25% 30% s 1 s 1 s 1 s 1 s 1 Security Capital Value Added Analysis - Net of Fee 9/0912/093/106/109/1012/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% -1.8 1.0 0.5 1.9 -0.1 -0.3 -0.1 -0.5 -0.5 -0.4 -0.1 -0.4 -0.3 -0.4 -0.7 0.8 -0.4 -0.3 0.6 -0.2 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Wilshire RESI 216 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 6/30/14 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 1.03 1.19 0.25 -3.22 10.60 13.41 13.41 13.08 1.05 -0.25 1.00 1.02 12.66 0.93 -0.28 2 2 -2.80 9.99 13.77 13.77 12.31 1.11 5 7 0.97 1.03 0.17 -15.51 14.90 1.60 30.83 16.10 1.00 -0.20 1.00 0.66 10.61 0.92 -0.83 5 7 -15.08 15.40 2.15 32.40 16.03 0.72 6 14 0.97 0.96 0.25 -15.51 33.55 0.35 58.46 19.26 0.96 0.12 0.99 1.22 24.50 1.67 -0.30 6 14 -15.08 35.93 1.76 56.07 20.02 1.20 8 16 0.98 0.99 0.29 -37.93 33.98 -45.85 118.01 32.65 1.00 -0.08 0.99 0.23 7.52 2.44 -0.17 8 16 -40.40 35.93 -45.65 115.40 32.72 0.24 217 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 6/30/14 -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 2.35 2.93 28,506 5,000 669 34,175 5.29 5.52 27,710 5,000 1,465 34,175 12.46 12.74 25,942 5,000 3,233 34,175 9.28 12.45 22,355 5,000 6,820 34,175 10.59 13.81 0 25,000 9,175 34,175 Portfolio Performance (%) 218 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 6/30/14 Cash & Equiv $5,002 14.64% Real Estate $29,172 85.36% Periods from 9/10 to 6/14 Alpha Beta R-Squared -0.55 0.94 0.68 An n u a l i z e d R e t u r n % -0.21.49012e-080.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 -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 10.59 13.81 0.09 2.31 1.58 0.03 4.55 8.69 0.00 -2.00 Asset Allocation ($000) Risk/Return Analysis 219 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/14 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 Last 3 Years 8.71 6.89 3.05 1.91 -1.98 2.35 68 2.93 53 19.95 14.61 12.65 8.84 -6.12 12.46 54 12.74 49 17.44 13.66 11.23 8.57 -0.55 9.02 71 12.46 34 16.49 12.49 10.68 7.70 -2.54 9.28 67 12.45 25 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% M O M O M O M O 220 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 6/30/14 YTD 2013 2012 2011 18.05 11.61 6.08 4.19 -5.29 5.29 64 5.52 60 17.59 13.23 8.76 2.71 -8.19 11.83 34 13.94 19 29.13 16.89 11.24 4.94 -6.83 4.70 77 10.94 52 24.92 15.96 10.85 2.35 -15.56 12.99 42 15.99 24 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M O M O M O M O 221 City of Clearwater Employees Pension Fund June 30, 2014 Cumulative Performance Comparison Total Returns of Real Estate Portfolios High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank 1 NCREIF ODCE Net Ret Rank 6/14 3/14 12/13 9/13 6/13 16.49 12.49 10.68 7.70 -2.54 9.28 67 12.45 25 24.99 14.19 10.68 7.09 -6.32 9.67 61 13.06 33 25.75 14.48 10.59 6.91 -6.11 9.78 54 13.61 30 25.61 15.27 11.73 7.17 -4.75 10.33 60 14.27 30 26.90 17.03 13.41 6.26 -6.68 -10% -5% 0% 5% 10% 15% 20% 25% 30% M 1 M 1 M 1 M 1 Multi Employer Property Trust Value Added Analysis - Net of Fee 12/103/116/119/1112/113/126/129/1212/123/136/139/1312/133/146/14 -11.0% -10.0% -9.0% -8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% -0.3 -0.8 -1.1 -0.2 -0.5 -1.2 -0.5 -1.7 -2.4 -0.7 -1.2 0.0 0.0 0.3 -0.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF ODCE 222 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 6/30/14 An n u a l i z e d R a t e o f R e t u r n 0.0 2.2 4.4 6.6 8.8 11.0 13.2 15.4 17.6 19.8 22.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Multi Employer Property Trust 1 NCREIF ODCE Median 9.28 67 2.06 21 12.45250.934 10.687.78 223 City of Clearwater Employees Pension Fund Risk Measure Summary Multi Employer Property Trust Quarterly Periods Ending 6/30/14 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 0.98 0.25 2.35 3.53 12.46 12.46 1.00 0.97 0.04 0.95 12.36 12.84 0.78 -0.34 0 4 2.52 3.56 12.74 12.74 0.87 14.56 1 11 0.75 0.08 -0.12 3.53 4.70 12.79 2.06 0.92 -0.48 0.56 4.47 10.06 1.60 -1.82 0 12 2.35 3.86 10.79 13.94 0.93 13.33 1 14 0.77 0.07 -0.12 4.72 4.70 15.44 2.31 0.94 -0.55 0.68 4.55 11.12 1.46 -2.00 0 15 2.35 4.99 10.79 18.27 1.58 8.69 224 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 6/30/14 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Qtr YTD 1 Year 3 Year 5 Year 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 1.08 7,581 0 0 7,581 0.99 2.72 7,579 -73 75 7,581 7.71 9.94 6,700 380 502 7,581 4.72 6.73 111 6,447 1,023 7,581 4.72 6.73 111 6,447 1,023 7,581 Portfolio Performance (%) 225 City of Clearwater Employees Pension Fund Molpus Woodlands Group as of 6/30/14 Real Estate $7,581 100.00% Periods from 6/11 to 6/14 Alpha Beta R-Squared 0.87 0.18 0.02 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 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 M 1 T Annualized Standard Deviation% M Molpus Woodlands Group 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 4.72 6.73 0.07 5.36 4.85 0.02 0.87 1.37 0.00 -0.33 Asset Allocation ($000) Risk/Return Analysis 226 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/14 High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years 8.71 6.89 3.05 1.91 -1.98 0.00 91 1.08 84 19.95 14.61 12.65 8.84 -6.12 7.71 78 9.94 71 17.44 13.66 11.23 8.57 -0.55 8.64 74 9.65 67 16.49 12.49 10.68 7.70 -2.54 4.72 84 6.73 78 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% M 1 M 1 M 1 M 1 227 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 6/30/14 YTD 2013 2012 18.05 11.61 6.08 4.19 -5.29 0.99 88 2.72 83 17.59 13.23 8.76 2.71 -8.19 15.16 13 9.68 46 29.13 16.89 11.24 4.94 -6.83 0.77 86 7.75 67 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M 1 M 1 M 1 228 City of Clearwater Employees Pension Fund June 30, 2014 Cumulative Performance Comparison Total Returns of Real Estate Portfolios High 1st Qt Median 3rd Qt Low M Molpus Woodlands Group Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 6/14 3/14 12/13 9/13 6/13 16.49 12.49 10.68 7.70 -2.54 4.72 84 6.73 78 24.99 14.19 10.68 7.09 -6.32 25.75 14.48 10.59 6.91 -6.11 25.61 15.27 11.73 7.17 -4.75 26.90 17.03 13.41 6.26 -6.68 -10% -5% 0% 5% 10% 15% 20% 25% 30% M 1 Molpus Woodlands Group Value Added Analysis - Net of Fee 9/1112/113/126/129/1212/123/136/139/1312/133/146/14 -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% -0.3 -1.9 -0.7 -0.9 0.9 -5.7 -1.4 6.9 2.3 -2.6 -0.6 -1.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF Timberland Index 229 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 6/30/14 An n u a l i z e d R a t e o f R e t u r n 0.0 2.2 4.4 6.6 8.8 11.0 13.2 15.4 17.6 19.8 22.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 M 1 Me d i a n Ri s k Median Return Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank M Molpus Woodlands Group 1 NCREIF Timberland Index Median 4.72 84 5.13 39 6.73784.1136 10.687.78 230 City of Clearwater Employees Pension Fund Risk Measure Summary Molpus Woodlands Group Quarterly Periods Ending 6/30/14 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 0.78 0.25 0.00 3.38 7.71 7.71 3.31 0.45 0.78 0.39 2.31 16.87 4.24 -0.52 0 4 1.05 5.92 9.94 9.94 4.70 2.10 5 7 0.72 1.96 0.25 -1.35 7.86 -2.71 16.17 5.13 0.18 0.87 0.02 0.90 25.36 6.17 -0.33 1 11 -0.35 5.92 1.13 9.94 4.11 1.62 5 7 0.72 1.96 0.25 -1.35 7.86 -2.71 16.17 5.13 0.18 0.87 0.02 0.90 25.36 6.17 -0.33 1 11 -0.35 5.92 1.13 9.94 4.11 1.62 231 City of Clearwater Employees Pension Fund Hancock as of 6/30/14 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/12 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 1.08 3,782 0 0 3,782 0.42 2.72 3,766 0 16 3,782 12.00 9.94 3,377 0 405 3,782 8.17 9.56 1,263 1,938 581 3,782 Portfolio Performance (%) 232 City of Clearwater Employees Pension Fund Hancock as of 6/30/14 Real Estate $3,782 100.00% Periods from 6/12 to 6/14 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 9.0 10.0 11.0 -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 8.17 9.56 0.09 10.07 5.66 0.02 0.80 1.67 0.00 -0.15 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 233 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 6/14 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 8.71 6.89 3.05 1.91 -1.98 0.00 91 1.08 84 18.05 11.61 6.08 4.19 -5.29 0.42 90 2.72 83 18.57 12.93 9.09 6.81 -4.89 12.37 27 8.80 53 19.95 14.61 12.65 8.84 -6.12 12.00 56 9.94 71 -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% H 1 H 1 H 1 H 1 234 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 6/30/14 YTD 2013 18.05 11.61 6.08 4.19 -5.29 0.42 90 2.72 83 17.59 13.23 8.76 2.71 -8.19 8.91 49 9.68 46 -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% H 1 H 1 235 City of Clearwater Employees Pension Fund Risk Measure Summary Hancock Quarterly Periods Ending 6/30/14 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 1.21 0.25 -0.33 11.90 12.00 12.00 11.88 2.19 -2.28 0.93 1.01 5.45 7.20 0.30 0 4 1.05 5.92 9.94 9.94 4.70 2.10 3 5 0.92 0.25 -1.83 11.90 5.88 12.16 9.95 1.99 -2.40 0.89 0.89 4.43 5.82 -0.09 0 8 0.75 5.92 9.35 9.94 4.44 2.15 236 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 237 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 238 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 239 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 240